The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Citi Food Manufacturing Conference 2010
15 slides from The J.m. Smucker's conference presentation, Dec 1, 2010
Slide 1: Forward Looking Statement and Agenda
Forward Looking Statement Agenda 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, performan
Slide 2: Strength of Smucker and Current Environment
Strength of Smucker Current Environment Ability to implement strategy Economic environment Portfolio of #1 brands Consumers searching for value Continuous improvements Aggressive competitive pricing Sound financial position Commodity costs increasing Culture and continuity of manag
Slide 3: Our Purpose and Long-Term Growth Strategy
Our Purpose Long-Term Growth Strategy New Products 1% Bringing Families Market Share 2-3% Together to Share Net Sales EPS 6% +8% Memorable Meals and Moments Acquisitions 2-3% Business Segments Segment Performance Segment President Brands Net Sales Segment Profit U.S. Retail Vince Coffee Market Byrd
Slide 4: New Products
New Products U.S. Retail Consumer Market – New Products U.S. Retail Oils & Baking Market – New Products Special Markets – New Products
Slide 5: Share of Voice, Social Media and Center-of-Store Strategy
Share of Voice Social Media 97% share of voice in peanut butter category 95% share of voice in fruit spreads category Source: Nielsen Ad*Views FY10 Fall Bake/Holiday Programs Center-of-Store Strategy Center of the store is an important profit center for retailers Nationally distributed ABC Sto
Slide 6: Types of Acquisitions and Restructuring Project Overview
Types of Acquisitions Restructuring Project Overview Types Description Example • Smaller in size Streamline coffee and fruit spreads supply chain Enabling • New capabilities • Capitalize on Smucker resources Improve cost structure of Canadian pickle and condiments business • Increase category Bo
Slide 7: Strong Portfolio of Leading Brands and Areas of Focus
Strong Portfolio of Leading Brands Two Year Anniversary of Coffee Business Areas of Focus Investing in the brands Achieved seamless integration Introducing new products Realized synergy targets Supply chain restructuring project Exceeded financial expectations Organization
Slide 8: Our U.S. Retail Coffee Market Segment
Our U.S. Retail Coffee Market Segment Folgers Roast & Ground Single Serve Gourmet 9% 21% Mainstream Roast & Ground 70% Net Sales Trailing Twelve Months Ended October 31, 2010 Launched K-Cup Offering Dunkin’ Donuts Growth Accepted by all • Original Blend ACV 82% major retailers • Original Whole Bea
Slide 9: Green Coffee Costs and Folgers Pricing Actions
Dunkin’ Donuts Seasonal Items Current Television Advertising Green Coffee Costs Folgers Pricing Actions Former Owner Smucker Since April 30, 2010 January 2007 4% December 2008 (4%) October 2007 4% April 2009 (100% Columbian only) 19% Arabica futures up 50% February 2008 6% May 2010 4% Robusta fu
Slide 10: FY 2011 2nd Quarter Income Statement Highlights
FY 2011 2nd Quarter Income Statement Highlights FY 2011 2nd Quarter U.S. Retail Coffee Market Quarter Ended Quarter Ended Quarter Ended Quarter Ended ($ in millions) October 31, 2010 October 31, 2009 % ($ in millions, except per share) % Chg October 31, 2010 October 31, 2009 Net Sales $ 477 $ 445 7%
Slide 11: FY 2011 2nd Quarter Segment Results and Outlook
FY 2011 2nd Quarter FY 2011 2nd Quarter U.S. Retail Consumer Market U.S. Retail Oils & Baking Market Quarter Ended Quarter Ended Quarter Ended Quarter Ended ($ in millions) October 31, 2010 October 31, 2009 % ($ in millions) October 31, 2010 October 31, 2009 % Net Sales $ 273 $ 290 (6%) Net Sales $
Slide 12: Allocation of Cash and Share Repurchase History
Allocation of Cash Share Repurchase History Board Shares Available for (Shares in thousands) Share Repurchase Authorization Repurchased Repurchase at FYE Return to Shareholders FY05 1,000 369 631 FY06 4,000 1,892 2,739 FY07 0 1,067 1,672 FY08 5,000 2,928 3,744 Dividends 11/6/08 – 11/5/10 Share Repur
Slide 13: Additional Information and Regulation G Compliance
Additional Information Pillsbury, the Barrelhead logo, and the Doughboy character are trademarks of The Pillsbury Company, LLC, used under license. Carnation is a registered trademark of Societe des Produits Nestle S.A., used under license. Dunkin’ Donuts, and the Dunkin’ Donuts Logo are the registe
Slide 14: Unaudited Non-GAAP Measures
The J. M. Smucker Company Unaudited Non-GAAP Measures The J. M. Smucker Company Three Months Ended October 31, Unaudited Non-GAAP Measures (Dollars in thousands, except per share data) 2010 2009 Company Guidance Operating income before restructuring and merger and integration costs Year Ended April
Slide 15: Unaudited Non-GAAP Measures: Free Cash Flow
The J. M. Smucker Company Unaudited Non-GAAP Measures Year Ended April 30, (Dollars in thousands) 5-Year Total 2010 2009 2008 2007 2006 Free cash flow Reconciliation to cash provided by operating activities: Cash provided by operating activities $ 1,815,502 $ 713,478 $ 446,993 $ 182,918 $ 273,424 $
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