Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2015)
20 slides from Hormel Foods's investor day presentation, Jun 11, 2015
Slide 1: Hormel Business Units
Hormel Business Units Steve Binder Executive Vice President President, Hormel Business Units
Slide 2: Organizational Structure
Organizational Structure Hormel Business Units Refrigerated Foods Grocery Products Consumer Consumer Insights & Product Sales Corporate Innovation
Slide 3: Consumer/Shopper Revolution Driving Change
Consumer/Shopper Revolution Driving Change
Slide 4: Evolving To Meet Market Driven Demands
Evolving To Meet Market Driven Demands Cultural Beliefs • Create loyalty • Results matter • Speak up • Build bridges • Grow talent • Be bold
Slide 5: Aligning Efforts and Resources
Aligning Efforts and Resources • Operations • Innovation • Sales • Brand building
Slide 6: Operational Excellence
Operational Excellence • Coordinate and upgrade raw material supply • Maximize utilization of shared plant assets • Create efficient, low cost production platforms • Safety priority – people and food
Slide 7: Top 10 Pork Harvest Companies
Top 10 Pork Pork Harvest Companies Packing Market Share Rank Company Daily Total Harvest Others Smithfield Foods 22% 26% 1 Smithfield Foods 117,000 2 Tyson Foods 76,925 3 JBS - Swift 50,000 4 Cargill / Excel 37,800 5 Hormel Foods / Triumph + 37,300 Farmer John Seaboard Farms 6 Triumph 20,000 8% Tyso
Slide 8: Consumer Relevant Innovation
Consumer Relevant Innovation • $3B by 2016 • Data and insights • Disciplined stage gate approach • Deliver meaningful new products • Align with company portfolio strategy
Slide 9: Delivering Results
Delivering Results The contribution of innovation efforts is accelerating In millions Achieved the $2B Challenge Start the $3B Challenge Achieved the $1B Challenge (two years early) Start the $2B Challenge Start of $1B Challenge 2004 2007 2010 2012 2014
Slide 10: Using Data to Drive Discovery
Using Data to Drive Discovery Data Conversation Innovation Process On-the-Go Protein
Slide 11: Connecting Insights to Design and a Focused Target
Connecting Insights to Design and a Focused Target Innovation Process Snack Sandwich Protein Energy Healthy Lifestyle
Slide 12: Combining Food Science and Technology
Combining Food Science and Technology Innovation Process Patent Pending
Slide 13: Data Driven Sales Execution
Data Driven Sales Execution Innovation Process
Slide 14: Superior Sales Execution
Superior Sales Execution • Channel-specific expertise • Focused, direct sales force • Branded value-added differentiated portfolio • Award recognized
Slide 15: Foodservice
Foodservice Industry Recognized • Sysco Gold Supplier 2014 • UniPro Supplier of the Year 2014 • UniPro Innovation 2014
Slide 16: Retail
Retail Industry Recognized • Walmart New Item of the Year 2014 • Progressive Grocer Magazine Category Captain – Ethnic Foods 2014 • Selling Power Magazine Top 50 Best Companies to Sell For
Slide 17: Supporting Brand Growth
Supporting Brand Growth - PE REHBPAISep as Ss i’ i i "FOR THOSE WHORE HUNGRY ~ d
Slide 18: Long Runway for Growth
Long Runway for Growth Low Household Penetration (HHP) REV® 4% Party Trays 6% Hormel® Refrigerated Guacamole 7% Category 30% Category 7% Natural Choice® 7% Category 14% Category 80% Hormel® COMPLEATS® 9% SPAM® 12% Pepperoni 22% Category 14% Category 14% Category 31% Source: 52 week IRI data ending 5
Slide 19: Operating Margin
Operating Margin Refrigerated Foods Grocery Products Guidance: 5% to 8% Guidance: 12% to 14% 1st half of 2015 actual: 10% 1st half of 2015 actual: 12%
Slide 20: Hormel Business Units
Hormel Business Units * *Expected July 2015 Closing