Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q2 2017 Earnings Presentation
22 slides from Tyson Foods's earnings presentation, May 8, 2017
Slide 1: Supplemental Information 2nd Quarter Fiscal 2017
Supplemental Information 2nd Quarter Fiscal 2017 May 8, 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 GAAP EPS guidance a
Slide 3: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) This presentation also includes statements regarding the expected consummation of the acquisition of AdvancePierre Foods Holdings, Inc. (“AdvancePierre Foods”), which involve a number of risks and uncertainties, including the satisfaction of closing conditions
Slide 4: Additional Information and Where to Find It
Additional Information and Where to Find It The tender offer referenced in this presentation has not yet commenced. This announcement is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities, nor is it a substitute for the tender offer
Slide 5: First Half of FY17
First Half of FY17 Six Months Highlights ($ in millions, except per share data) FY17 Sales $18,265 • Record Adjusted EPS* of Adjusted Operating Income* $1,605 $2.60, up 17% from last year Adjusted Operating Margin* 8.8% Adjusted EPS* $2.60 • Record Adjusted Operating Income* up 8% to $1.6 billion ($
Slide 6: Complementary Portfolios of Strong Brands
Complementary Portfolios of Strong Brands 6 Tyson Foods, Inc. | May 8, 2017
Slide 7: Core 9 and Total Tyson Leading in CPG Volume Performance
Core 9 and Total Tyson Leading in CPG Volume Performance Volume sales % change among top 10 branded food companies >$5B 5.3% 5.0% Total F&B -0.5% -0.5% Total Core 9 -3.1% -3.4% -3.7% -5.4% -5.7% -7.6% -11.1% Source: IRI Total U.S. Multi-Outlet (x Costco) Volume Sales 13 weeks ending 4/16/2017 -13.4%
Slide 8: Core 9 and Total Tyson Leading in CPG Dollar Performance
Core 9 and Total Tyson Leading in CPG Dollar Performance Dollar sales % change among top 10 branded food companies >$5B 4.0% 3.7% 0.7% 0.4% Total -0.5% -0.6% Core 9 Total F&B -1.5% -1.6% -4.0% -4.3% -6.5% -8.2% Source: IRI Total U.S. Multi-Outlet (x Costco) Dollar Sales 13 weeks ending 4/16/2017 Pro
Slide 9: Innovation: Building on a Proven Track Record
Innovation: Building on a Proven Track Record 9 Tyson Foods, Inc. | May 8, 2017
Slide 10: Innovation: No Antibiotics Ever & Organic
Innovation: No Antibiotics Ever & Organic 10 Tyson Foods, Inc. | May 8, 2017
Slide 11: Innovation: Tyson Tastemakers Expanding to Retail
Innovation: Tyson Tastemakers™ Expanding to Retail 11 Tyson Foods, Inc. | May 8, 2017
Slide 12: Strategic Intent
Strategic Intent Sustainably feed the world with the fastest growing portfolio of protein packed brands 12 Tyson Foods, Inc. | May 8, 2017
Slide 13: Purpose
Purpose 13 Tyson Foods, Inc. | May 8, 2017
Slide 14: First Half of FY17
First Half of FY17 Six Months Highlights ($ in millions, except per share data) FY17 Sales $18,265 • Record Adjusted EPS* of Adjusted Operating Income* $1,605 $2.60, up 17% from last year Adjusted Operating Margin* 8.8% Adjusted EPS* $2.60 • Record Adjusted Operating Income* up 8% to $1.6 billion ($
Slide 15: FY17 Outlook
FY17 Outlook Adjusted EPS of Sales of $36-37B** CapEx of ~$1B $4.90-5.05* Similar to FY16 as we grow ~12% growth over FY16 volume across each segment, offset by lower beef prices Chicken Segment Beef Segment Pork Segment Prepared Foods operating margin in 9- operating margin operating margin Segment
Slide 16: Q&A
Q&A Tom Hayes Dennis Leatherby President & Executive Vice President & Chief Executive Officer Chief Financial Officer 16 Tyson Foods, Inc. | May 8, 2017
Slide 17: Appendix: Non-GAAP Reconciliations
Appendix 2nd Quarter Fiscal 2016 Non-GAAP Reconciliations
Slide 18: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) Second Quarter Six Months Ended Pre-Tax Impact EPS Impact Pre-Tax Impact EPS Impact 2017 2016 2017 2016 2017 2016 2017 2016 Reported net income per share attributable to Tyson $ 0.92 $ 1.10 $ 2.51 $ 2.25 Add: San Diego Prepared Foods
Slide 19: Operating Income Reconciliations
Operating Income Reconciliations In millions (Unaudited) Second Quarter Six Months Ended 2017 2016 2017 2016 Reported operating income $ 571 $ 704 $ 1,553 $ 1,480 Add: San Diego Prepared Foods operation impairment 52 - 52 - Adjusted operating income $ 623 $ 704 $ 1,605 $ 1,480 Adjusted operating inc
Slide 20: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) 12 Months Ended October 1, 2016 Operating Income EPS Reported from Continuing Operations 2,833 $ 4.53 Less: Recognition of previously unrecognized tax benefit - (0.14) Adjusting from Continuing Operations $ 2,833 $ 4.39 Adjusted oper
Slide 21: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations In millions Adjusted Segm ent Operating Incom e (Loss) (Unaudited) (for three months ended April 1, 2017) Prepared Intersegm ent Beef Pork C hick en F oods Other Sales Total Sales $ 3,487 $ 1,302 $ 2,798 $ 1,751 $ 82 $ (337) $ 9,083 Repor
Slide 22: Combined Tyson Foods & AdvancePierre Proforma Net Debt to Proforma Adjusted EBITDA
Combined Tyson Foods & AdvancePierre Proforma Net Debt to Proforma Adjusted EBITDA In millions, except per share data 12 Months Ended (Unaudited) April 1, 2017 Net income $ 1,812 Less: Interest income (6) Add: Interest expense 232 Add: Income tax expense (benefit) 861 Add: Depreciation 626 Add: Amor