Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q3 FY2017 Earnings Presentation
20 slides from Tyson Foods's earnings presentation, Aug 7, 2017
Slide 1: Supplemental Information 3rd Quarter Fiscal 2017
Supplemental Information 3rd Quarter Fiscal 2017 August 7, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance and including, but not limited to, statements appearing in the “Outlook” section and statements relating to adjusted EPS guidan
Slide 3: Q3 FY17 Highlights
Q3 FY17 Q3 FY17 Highlights ($ in millions, except per share data) Sales $9,850 • Adjusted EPS* of $1.28, up 6% Adjusted Operating Income* $756 from Q3 last year Adjusted Operating Margin* 7.7% Adjusted EPS* $1.28 • Sales up 4.8% from Q3 last year and every segment delivered growth** ($ in millions)
Slide 4: Complementary Portfolios of Strong Brands
Complementary Portfolios of Strong Brands 4 Tyson Foods, Inc. | August 7, 2017
Slide 5: Q3 FY17 Segment Results
Q3 FY17 Segment Results ($ in millions) Q3 FY17 Results Adjusted Operating Income* Dollars ROS% Beef $147 3.7% Pork 136 10.3% Chicken 298 10.4% Prepared Foods 195 10.0% Other (20) n/a Total $756 7.7% *Represents a non-GAAP financial measure. Adjusted operating income and adjusted operating margin ar
Slide 6: Core 9 and Total Tyson Leading in Volume Performance
Core 9 and Total Tyson Leading in Volume Performance Volume sales % change among top 10 branded food companies >$5B 6.0% 5.4% 4.5% 0.2% Total -0.4% Core 9 Total F&B -2.5% -2.6% -2.6% -4.9% -5.0% -7.3% -9.9% Source: IRI Total U.S. Multi-Outlet (x Costco) Volume Sales 52 weeks ending 7/2/2017 Includes
Slide 7: Core 9 and Total Tyson Leading in Dollar Performance
Core 9 and Total Tyson Leading in Dollar Performance Dollar sales % change among top 10 branded food companies >$5B 3.8% 3.2% 1.7% 1.3% 0.4% Total -0.6% -0.6% Core 9 Total F&B -1.6% -2.9% -3.2% -5.7% -6.6% Source: IRI Total U.S. Multi-Outlet (x Costco) Volume Sales 52 weeks ending 7/2/2017 Includes
Slide 8: Tyson is well positioned to capitalize on growth in the fresh retail perimeter
Tyson is well positioned to capitalize on growth in the fresh retail perimeter Retail Department Volume Growth (%) vs. YA indicates departments where Tyson has a significant presence DAIRY RFG MEAT ALL OTHER RFG Category +2.2% Category +2.0% +7.8% Category -0.9% SEAFOOD FROZEN GENERAL FOOD BEVERAGE
Slide 9: Innovation Platforms
Innovation Platforms Fresh Fresh Keeping Meal Kits Take on Core 9 & Starters Breakfast Fresh 9 Tyson Foods, Inc. | August 7, 2017
Slide 10: Innovation – Recent Product Launches
Innovation – Recent Product Launches 10 Tyson Foods, Inc. | August 7, 2017
Slide 11: Strategic Intent
Strategic Intent Sustainably feed the world with the fastest growing portfolio of protein packed brands 11 Tyson Foods, Inc. | August 7, 2017
Slide 12: FY18 Outlook
FY18 Outlook* Sales of ~$41B** CapEx of ~$1B+ Topline growth of ~6% as we grow volume and have full year benefit of AdvancePierre Beef Segment Pork Segment Chicken Segment Prepared Foods operating margin operating margin operating margin Segment operating around 5% above 6-8% normalized approximatel
Slide 13: Nine Months of FY17
Nine Months of FY17 Nine Highlights ($ in millions, except per share data) Months FY17 Sales $28,115 • Record Adjusted EPS* of $3.88, up Adjusted Operating Income* $2,361 13% from last year Adjusted Operating Margin* 8.4% Adjusted EPS* $3.88 • Record Adjusted Operating Income* of $2.4 billion, up 5%
Slide 14: FY17 Outlook
FY17 Outlook Sales of ~$38B CapEx of ~$1B Adjusted EPS of Expect AdvancePierre to $4.95-5.05* have an incremental impact • ~13-15% growth over of approximately $550 million FY16 • 5 year CAGR of ~20% *Projected Adjusted EPS as of 8/7/17. Represents a non-GAAP financial measure. Adjusted EPS is expla
Slide 15: FY17 Segment Outlook
FY17 Segment Outlook Adjusted ROS%* YTD FY17 Q4 Projection FY17 Outlook Beef 5.2% ~4-5% ~5% Pork 13.5% ~6-8% ~12% Chicken 9.5% ~10-11% ~10% Prepared Foods 9.4% ~7-8% ~9% *Represents a non-GAAP financial measure. Adjusted operating income and adjusted operating margin are explained and reconciled to
Slide 16: FY18 Outlook
FY18 Outlook* Sales of ~$41B** CapEx of ~$1B+ Topline growth of ~6% as we grow volume and have full year benefit of AdvancePierre Beef Segment Pork Segment Chicken Segment Prepared Foods operating margin operating margin operating margin Segment operating around 5% above 6-8% normalized approximatel
Slide 17: Q&A
Q&A Tom Hayes Dennis Leatherby President & Executive Vice President & Chief Executive Officer Chief Financial Officer 17 Tyson Foods, Inc. | August 7, 2017
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix 3rd Quarter Fiscal 2017 Non-GAAP Reconciliations
Slide 19: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) Third Quarter Nine Months Ended Pretax Impact EPS Impact Pretax Impact EPS Impact 2017 2016 2017 2016 2017 2016 2017 2016 Reported net income per share attributable to Tyson $ 1.21 $ 1.25 $ 3.72 $ 3.50 Add: AdvancePierre purchase acc
Slide 20: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations Adjusted Segment Operating Income (Loss) In millions (for three months ended July 1, 2017) (Unaudited) Beef Pork Chicken Prepared Foods Other Intersegment Sales Total Sales $ 4,000 $ 1,322 $ 2,870 $ 1,944 $ 85 $ (371) $ 9,850 Reported ope