Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Investor Presentation (February 2014)
41 slides from Fresh Del Monte Produce's investor presentation, Feb 24, 2014
Slide 1: Fresh Del Monte Produce Inc. Investor Relations February 2014
Fresh Del Monte Produce Inc. Investor Relations February 2014
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance. These forward-looking statements are based on information currently available to the Company
Slide 3: Agenda
Agenda 3 Fresh Del Monte at a Glance Strengths We Are Building On Growth Strategy Selected Financial Highlights
Slide 4: Fresh Del Monte at a Glance
One of the world’s leading vertically-integrated producers, distributors and marketers of fresh and fresh-cut fruit and vegetables as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, Africa, the Middle East and countries f
Slide 5: Fresh Del Monte at a Glance: company history
5 Brand established 1892 Fresh business separated from canned in 1989 Del Monte Fresh Produce acquired by current management in 1996; IPO 1997 NYSE Introduced the first new pineapple variety in more than 15 years in 1996; the Del Monte Gold® Extra Sweet Pineapple In 1999, expanded “value-a
Slide 6: Global Leadership Team
Global Leadership Team Name Title Years at FDP Mohammad Abu-Ghazaleh Chairman and CEO 17 Hani EI-Naffy President and COO 17 Richard Contreras Senior VP and CFO 15 Bruce A. Jordan Senior VP – General Counsel and Secretary 11 Jean-Pierre Bartoli Senior VP – Europe and Africa 30 Emanuel Lazopoulos Seni
Slide 7: Then and Now
Then and Now 7 Then Now Delivery System Truckload shipments 2 Distribution Centers (“DC’s”) Truckload shipments, Just in Time (“JIT”), Direct Store Delivery (“DSD”) 40+ Global DC’s & Fresh-Cut Operations (“FCO’s”) Sourcing Limited Global basis Narrow More than 100 products Logistics Chartered vessel
Slide 8: Net Global Sales by Region and Revenue by Product
8 Net Global Sales by Region 1996 Net Global Sales of $1.2 Billion 2013 Net Global Sales of $3.7 Billion Revenue by Product Fresh Del Monte at a Glance International Expansion Expanded Products Platform 13% 35% 3% 49% 1996 Asia Europe Other North America 4% 6% 15% 75% 1996 Other Melons Pineapples Ba
Slide 9: Why Invest in Fresh Del Monte Produce?
Investment Highlights 9 Global brand with leadership across categories Experienced and committed global management team Unique vertical integration strategy Leader and industry pioneer in consumer and industry trends Financial strength Why Invest in Fresh Del Monte Produce?
Slide 10: Strengths We Are Building On
Del Monte Strengths We Are Building On
Slide 11: Looking into the future
“By 2050, demand for food will rise 70 per cent yet our capacity to increase food production is declining.” Source: Oxfam International, June 1, 2011 “We will need to double irrigation by 2050 to grow enough food to meet demand of an estimated population of 9 billion people” Source: WWF (http://wwf.
Slide 12: Looking into the future: production growth and population
Strengths We Are Building On Looking into the future FDP's Production Growth Volume (18K equivalent): in millions 2008 2013 North America 93 104 Europe 52 42 Mena 16 30 Asia 23 20 Source: The United Nations (2010) 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 2013 2023 2033 2043 M ill ion s Global
Slide 13: Most Innovative Fresh Produce Company
Strengths We Are Building On Most Innovative Fresh Produce Company Source: USDA- 2013 Fruit and Fruit and Tree Nut Yearbook Introduction of Del Monte Gold® Extra Sweet Pineapple 13
Slide 14: Leading Market Positions
Strengths We Are Building On Leading Market Positions Marketer of fresh pineapples worldwide Marketer of bananas worldwide A leading grower, re-packer and marketer of tomatoes in the U.S. A leading marketer of branded grapes in the U.S. A leading marketer of branded canned pineapple and canned fruit
Slide 15: Unmatched Scale and Scope
15 Unmatched Scale and Scope Strengths We Are Building On
Slide 16: The Del Monte Brand
• Del Monte is one of the 2 top of mind brands when consumers are asked to recall a fresh produce brand. • Del Monte total brand awareness is nearly universal with 93% brand recognition. • 80% of consumers recall purchasing a Del Monte Fresh product. • 29% of consumers choose Del Monte when asked wh
Slide 17: The Del Monte Brand in North America
* 2012 Qualtrics research conducted for Del Monte Fresh Produce Strengths We Are Building On The Del Monte® Brand in North America 17
Slide 18: Growth Strategy
Growth Strategy Del Monte
Slide 19: Our Growth Strategy
1. Grow existing products 2. New products – R&D and acquisitions 3. Expanding geographic presence 4. Entering new distribution channels 5. Leverage infrastructure 6. Drive cost controls and efficiencies Investing for Long-Term Growth Our Growth Strategy 19
Slide 20: Strategy in Action - Fresh-cut
Strategy in Action – Fresh cut Del Monte® North America Fresh-cut Growth Strategy #1 : Grow Existing Products $200 $220 $240 $260 $280 $300 $320 2008 2009 2010 2011 2012 2013 N et Sale s In mil lio n s Year 20
Slide 21: Drivers of fresh-cut growth
CONSUMER S Drivers of fresh-cut growth Strategy in Action – Fresh cut Strategy #1 : Grow Existing Products FO O D S E R VIC E • Premeasured and customized packaging • Health and wellness • Food safety • Desire for convenience • Pre-washed and pre-packaged • On-the-go • Ready-to-eat/use 21
Slide 22: Strategy in Action - R&D Pipeline
North America • UHP avocados • Protein salads • Field grown tomatoes Europe & Africa • Juice varieties • Fruit Express • Ice Lollies • Prepared sauces and meal replacements Middle East • Fresh juices • Canned juices • Frozen vegetables • Frozen french fries • Frozen meat products • Hummus • Beans •
Slide 23: Strategy in Action - R&D Pipeline
Strategy in Action – R&D Pipeline Strategy #2 : New Products 23
Slide 24: Strategy in Action - Expanding Global Footprint
Strategy in Action - Expanding Global Footprint North America Europe & Africa Middle East Asia Colombia, Ecuador, Central America and Brazil South America • Canada – Distribution center, fresh-cut and protein salad production facility • Texas – Protein salad production facility • France – Distributi
Slide 25: Strategy in Action - Meeting Evolving Customer Needs
Fresh Market Stores Vending Machines Packaging for Convenience stores and Petrol stations Strategy in Action – Meeting Evolving Customer Needs Strategy #4 : New Distribution Channels 25
Slide 26: Strategy in Action - Build Relationships
Strategy in Action – Build Relationships Strategy #5 : Leverage Infrastructure Retailers Foodservice Casual Dining & Quicks Serve Chain Convenience Stores Warehouse 26
Slide 27: Strategy in Action - Priorities
Streamline operations Maximize logistics utilization Increase our production versus independent growers Focus on cash generation Prioritize capital Leverage our sales capabilities Strategy in Action – Priorities Strategy #6 : Drive Cost Controls and Efficiencies 27
Slide 28: Selected Financial Highlights
Selected Financial Highlights
Slide 29: Financial Performance Summary
Financial Performance Summary Data 29 in Millions 2007 2008 2009 2010 2011 2012 2013 Net Sales 3,366$ 3,531$ 3,496$ 3,553$ 3,590$ 3,421$ 3,684$ Gross Profit 365$ 344$ 311$ 272$ 320$ 342$ 290$ Operating Income 193$ 171$ 148$ 77$ 116$ 161$ (28)$ Net Income* 180$ 158$ 144$ 62$ 93$ 143$ (34)$ EPS - GAAP
Slide 30: Earnings Per Diluted Share
30 $3.22 $2.82 $2.63 $1.77 $1.82 $2.54 $1.57 Excludes asset impairment and other charges. 2007 2008 2009 2010 2011 2012 2013 Financial Performance Earnings Per Diluted Share
Slide 31: Operating Cash Flow
Financial Performance Operating Cash Flow 31 in Millions $147 $187 $258 $197 $196 $173 $109 2007 2008 2009 2010 2011 2012 2013
Slide 32: Debt, stock repurchase and dividend policy
32 We have continued investing in diversification and expansion without adding significant debt $266 million spent under stock repurchase program between 2010 and 2013 Dividend Policy • Quarterly cash dividend 0f $0.125 per ordinary share in Millions Financial Performance Debt $ 4 0 3 Caribana A
Slide 33: Capital Expenditures and Book Value Per Share
33 in Millions Financial Performance Capital Expenditures $81 $102 $85 $71 $79 $80 $160 2007 2008 2009 2010 2011 2012 2013 Asset Rich Company Book Value Per Share at Year-End 2013 $30.77
Slide 34: Financial Performance: Bananas
34 Financial Performance Bananas 2007 2008 2009 2010 2011 2012 2013 Price / Box 11.84$ 13.52$ 14.07$ 13.68$ 14.22$ 14.14$ 14.52$ Net Sales 1,199$ 1,420$ 1,511$ 1,620$ 1,653$ 1,545$ 1,692$ Gross Profit* 61$ 121$ 107$ 33$ 86$ 90$ 62$ Gross Profit Margin 5% 8% 7% 2% 5% 6% 4% * Excludes asset impairment
Slide 35: Financial Performance: Other Fresh Produce
35 Financial Performance Other Fresh Produce in Millions 2007 2008 2009 2010 2011 2012 2013 Net Sales 1,736$ 1,699$ 1,649$ 1,573$ 1,582$ 1,545$ 1,639$ Pineapples 430$ 459$ 476$ 508$ 529$ 513$ 510$ Fresh-Cut 329$ 319$ 315$ 317$ 354$ 391$ 408$ Melons 251$ 221$ 242$ 179$ 123$ 114$ 116$ Gross Profit* 24
Slide 36: Financial Performance: Prepared Food
36 Financial Performance Prepared Food in Millions 2007 2008 2009 2010 2011 2012 2013 Sales 429$ 412$ 337$ 360$ 355$ 332$ 353$ Gross Profit* 57$ 52$ 52$ 46$ 54$ 46$ 35$ Gross Profit Margin 13% 13% 15% 13% 15% 14% 10% * Excludes asset impairment & other charges. Full Year
Slide 37: Appendix
Fresh Del Monte Produce Inc. Appendix
Slide 38: Appendix Income Statement
Appendix Income Statement 38 in Millions 2007 2008 2009 2010 2011 2012 2013 Net Sales 3,366$ 3,531$ 3,496$ 3,553$ 3,590$ 3,421$ 3,684$ Cost of Sales 3,004 3,184 3,170 3,272 3,272 3,079 3,392 Restructuring and Other Charges (3) 3 15 9 (1) 1 2 Gross Profit 365 344 311 272 320 342 290 % Margin 11% 10%
Slide 39: Income Statement - Non-GAAP Measures
Appendix Income Statement – Non-GAAP Measures 39 December 27, December 28, 2013 2012 Non-GAAP Measures: Reported net (loss) income per share - Diluted (0.61)$ 2.46$ Other charges, net (1) 0.03$ 0.02$ Asset impairment and other charges, net (2) 2.42$ 0.06$ Unfavorable (favorable) items included in ot
Slide 40: Appendix Cash Flow
40 Appendix Cash Flow in Millions 2007 2008 2009 2010 2011 2012 2013 Net Income* 180$ 157$ 145$ 61$ 95$ 145$ (34)$ Non-Cash Charges 91 93 85 114 91 73 211 Working Capital (124) (63) 28 22 10 (45) (68) Operating Cash Flow 147 187 258 197 196 173 109 Capital Expenditures (81) (102) (85) (71) (79) (80)
Slide 41: Appendix Balance Sheet
41 Appendix Balance Sheet in Millions 2007 2008 2009 2010 2011 2012 2013 ASSETS Cash & Short Term Investments 30$ 28$ 35$ 49$ 47$ 40$ 43$ Accounts Receivable 414 410 375 377 355 354 398 Inventory & Other 444 537 499 455 490 532 575 CURRENT ASSETS 888 975 909 881 892 926 1,015 Property, Plant & Equip
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