The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — William Blair & Company Growth Stock Conference 2009
33 slides from The J.m. Smucker's conference presentation, Jun 9, 2009
Slide 1: June 9, 2009 - Richard Smucker
June 9, 2009 Richard Smucker
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, such as projected operating results, earnings and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or im
Slide 3: Bringing Families Together to Share Memorable Meals and Moments
● Ability to implement strategy ● Strong and growing portfolio of #1 brands ● Increased scale and opportunities with Folgers ● Enhanced margins, strong balance sheet, and increased cash flow ● Company culture Bringing Families Together to Share Memorable Meals and Moments 3
Slide 4: Company history 1984-2008
950 900 850 800 1984 1987 1990 1993 1996 1999 2002 2005 2008 4
Slide 5: Trusted Family of Brands
~---- jg aTrusted Family of Brands Family Meals Are.
Slide 6: Our Brands Provide Comfort and Trust
Our Brands Provide Comfort and Trust
Slide 7: Trust, Relevance, Consistency
Trust Relevance Consistency Quality Variety Convenience Price 7
Slide 8: Long-Term Relationships, Basic Beliefs
Long-Term Relationships Basic Beliefs 8
Slide 9: Core Competencies and Basic Beliefs
Folgers Communications & Training Focus Focus On Organization On Culture Employee Development Approximately 35,000 man hours committed Core Competencies Basic Beliefs 9
Slide 10: We will own and market food brands which hold the market position
We will own and market food brands which hold the market position in their respective category, with an emphasis on North America 80% % Dollar Share of Category 70% 67% 66% 60% #1 in 9 out of 14 Categories 48% 50% 46% 46% 42% 39% 40% 37% 30% 21% 18% 17% 20% #1 #1 #1 #1 #1 #1 #1 #1 15% 11% 10% #2 #2
Slide 11: Our Vision, Core Competencies, Basic Beliefs
Fix the bullets, colors….also should we grey the words a little? Our Vision Core Competencies Basic Beliefs Net Sales Growth 6% 11
Slide 12: Net Sales Growth 6%, EPS Growth 8%+
New Products 1% Market Share 2-3% Total 6% Acquisitions 2-3% Leverage Infrastructure Net Sales Growth 6% EPS Growth 8%+ 12
Slide 13: Target Dividend Payment and 10-Year Returns
EPS Growth 8%+ Target Leverage Infrastructure Dividend Payment 40% Payout Net Sales Growth 6% $350 10-Year CAGR $300 Smucker: 9.5% S&P 500: -2.4% $250 DJIA: -0.6% $200 Peer Group: 3.1% $150 $100 $50 $0 1999 2004 2009 SJM S&P 500 DJIA Peer Group *Based on $100 investment and dividends reinvested. Inf
Slide 14: Steve Oakland
Steve Oakland Projected Sales from # 14
Slide 15: Center of the store is an important profit center
Center of the store is an important profit center for retailers ABC Store Baking Spreads/ Frozen Coffee Specialty Natural Aisle Condiments Aisle Aisle Aisle Aisle Beverage Aisle Ranked in Top 10 Branded Dry Grocery Foods Manufacturer Spreads Coffee 20% 40% Baking All 25% Other 15% 15
Slide 16: Folgers integration timeline
Nov. 2008 Dec. 2008 Feb. 2009 May 2009 Fall 2009 Closing Integrated Sales Team Organizational Structure Customer Visits Customer Facing Plant Go-Live 16
Slide 17: Folgers integration workstreams
Bill of Materials Accounting Human Resources Purchasing Warehouse Operations Raw Materials Inventory Production Scheduling and Reporting Nov. 2008 Dec. 2008 Feb. 2009 May 2009 Fall 2009 Closing Integrated Sales Team Organizational Structure Customer Visits Customer Facing Plant Go-Live Green Coffee
Slide 18: Grow core red can business
Grow core “red can” business Other 10% Gourmet 20% Roast and Ground 70% 18
Slide 19: Strengthen Core Equity
Strengthen Core Equity Leveraging the Brands a) Breakfast t es Pi $3/ 19
Slide 20: Product achievements and recognition
● Annual sales in excess of $200 million ● Advertising recognition in Advertising Age ● 2008 IRI New Product Pacesetter – Ranked #2 20
Slide 21: Proprietary Roasting Process
IRI data FDMX – 12 weeks ending May 17, 2009 Dollar Category 3.4% Smucker 4.5% ● Proprietary Roasting Process – Enhanced flavor – Reduced package weight – Same number of cups brewed 21
Slide 22: Everyday lower price on shelf
Net Sales List Trade Price Spend Everyday lower price on shelf 22
Slide 23: Combined category size of $2 billion
Combined category size of $2 billion Trended Sales 5-Year CAGR > 7% FY2004 FY2006 FY2008 Share of Market: 46% 23
Slide 24: Leveraging the brands
Leveraging the brands 24
Slide 25: Jif market share
IRI data FDMX – 12 weeks ending May 17, 2009 Dollar Category 6.7% Jif ® 7.2% 25
Slide 26: Combined category size of $6 billion
Combined category size of $6 billion Trended Sales 5-Year CAGR > 25% Share of Market: 20% FY2004 FY2006 FY2008 26
Slide 27: Increased Pillsbury Positioning
Increased Pillsbury Positioning Pillsbury 27
Slide 28: Crisco Healthy Options
Crisco Healthy Options 28
Slide 29: Funding alternatives and debt due
($ in millions) June 2009 $ 75 Paid November 2009 200 November 2009 350 Total Due $625 ● Funding alternatives – Available cash-on-hand – $180 mm available under revolving credit facility – Cash provided from operations ● Evaluating new bank financing instrument ● Determining appropriate bank group a
Slide 30: Pension expense
● No impact on FY 2009 P&L ● Market performance Pension expense ● FY 2010 impact approximately $10 million ● $30 million cash contribution made in April 2009 ● Valuation process near completion ● No material adjustments anticipated 30
Slide 31: Ability to implement strategy
● Ability to implement strategy ● Strong and growing portfolio of #1 brands ● Increased scale and opportunities with Folgers ● Enhanced margins, strong balance sheet, and increased cash flow ● Company culture 31
Slide 32: William Blair Growth Stock Conference
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Slide 33: Additional Information
Additional Information Pillsbury, the Pillsbury Logo, and Poppin’ Fresh the Pillsbury Doughboy are the registered trademarks of The Pillsbury Company, LLC. Carnation is the registered trademark of Societe des Produits Nestle S.A. Dunkin’ Donuts, and the Dunkin’ Donuts Logo are the registered tradema
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