Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Investor Presentation (February 2022)
39 slides from Del Monte Pacific's investor presentation, Feb 11, 2022
Slide 1: Del Monte Pacific Corporate Presentation
DEL MONTE PACIFIC A GLOBAL HERITAGE BRANDS COMPANY CORPORATE PRESENTATION 11 February 2022 Nourishing Families. Enriching Lives. Every Day.
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward-looking nature and are therefore based on management’s assumptions about future developments. Such forward-looking statements are typically
Slide 3: Contents
Contents ▪ DMPL Advantage ▪ Overview ▪ USA Transformation ▪ Asia Initiatives ▪ Financials, Dividends ▪ Strategy, Outlook ▪ ESG and Awards ▪ Investment Merits
Slide 4: Del Monte Pacific Advantage
Del Monte Pacific Advantage 7% 33% Sales growth EBITDA growth Tripled 310bps Net profit Net margin improvement 5-6% #1-3 New products Leading market sales of total sales position Note: All figures are for 1H FY2022 ending Oct 2021 4
Slide 5: Company Overview
Company Overview ▪ Del Monte Pacific is one of the largest branded F&B companies listed in DMPL FY2021 SALES Southeast Asia By Geography ▪ 136-year heritage with exclusive rights to premium brands Del Monte and 2% S&W in certain geographies and product categories 11% ▪ Dual-listed in Singapore (sinc
Slide 6: Brand Ownership
Brand Ownership 6
Slide 7: Heritage Brands
Heritage Brands * 1886 1896 1914 1923 ▪ Nutritious as fresh ▪ Finest quality ▪ Italian heritage ▪ Premium ingredients ▪ All natural ▪ Healthy ▪ Premium quality ▪ Taste of home USA and South P P P P North and South America America Mexico Conagra P P P Central America Del Monte Panamerican P P P & Car
Slide 8: Overview: Major Subsidiaries
Major Subsidiaries 93.6% 87.0% Del Monte Foods, Inc. (DMFI) Del Monte Philippines, Inc. (DMPI) STRONG TURNAROUND GROWING REVENUES TRAJECTORY AND PROFITS ▪ 136 years of heritage ▪ 96 years in the Philippines with significant brand resonance ▪ A leading producer, distributor and marketer of ▪ #1 expor
Slide 9: Diversified and Attractive Product Categories
Diversified and Attractive Product Categories Packaged Fruit and Fresh Fruit Culinary Beverage Vegetable and Others ▪ Packaged fruit and ▪ Includes tomato-based ▪ Includes sales of S&W ▪ Beverage includes 100% vegetable under the products such as tomato branded fresh pineapples pineapple juice, juic
Slide 10: Long-Standing Market Leadership Across Multiple Categories
Long-Standing Market Leadership Across Multiple Categories 20.2% #1 20.5% #2 25.1% #2 5.5%* #3 FRESH PINEAPPLE Source for market shares: Nielsen RMS / Scantrack DMFI Custom DBs, Eq Vol share, Total xAOC, Latest 12M ending 31 October 2021 Region Market Share China 53% Japan 91.2% within South Korea T
Slide 11: Large Global Business and Vertically Integrated Pineapple Operations
N O U R I S H I N G FA M I L I E S . E N R I C H I N G L IVE S . E VE RY DAY. ® Large Global Business and Vertically Integrated Pineapple Operations PRODUCTION FACILITIES DISTRIBUTION REACH USA 6 USA Taiwan Cambodia Israel Maldives Germany Canada Mongolia Myanmar UAE Turkey Portugal Mexico 2 Mexico
Slide 12: Premium MD2 Pineapple
Premium MD2 Pineapple Premium MD2 Pineapple vs. Other Varieties(2) Plantation Nicer shape ▪ DMPL grows 2 types of pineapple – C74 which is mostly processed Better taste favored by and MD2 which is mostly sold as fresh North Asian consumers(3) Longer shelf life ▪ Of the total land of 26,000-ha., c. 7
Slide 13: Strong Multi-Channel Distribution Network Built on Strategic Partnerships
Strong Multi-Channel Distribution Network Built on Strategic Partnerships USA OFFLINE PHILIPPINE OFFLINE(2) Strong presence across the Top 10 largest US grocers(1) Key Accounts 1 4 7 General Trade 91,500 Outlets Modern Trade 7,600 Outlets 2 5 8 Foodservice 13,000 Outlets 3 6 9 Convenience and Others
Slide 14: Strong Multi-Channel Distribution Network (cont'd.)
Strong Multi-Channel Distribution Network Built on Strategic Partnerships (cont’d.) ASIA OFFLINE PACKAGED FRESH Pagoda Eachtake Yonghui Hema Xianfeng 神戸真田貿易株式会社 ASIA ONLINE T Dingdong Hema Miss Fresh Pinduoduo EUROPE OFFLINE 14
Slide 15: Experienced Management Team Anchored by Supportive Shareholder
Experienced Management Team Anchored by the Company’s Highly Supportive Shareholder Strong shareholder sponsorship from the Strong management team across USA and Philippines with wide-ranging Campos Family (1) experience in international markets Joselito D. Campos, Jr. and Rolando C. Gapud Joselito
Slide 16: USA Journey and Transformation
USA Journey and Transformation
Slide 17: DMFI's Journey
DMFI’s Journey ▪ DMPL acquired Del Monte Foods, Inc. (DMFI) in 2014 for US$1.675bn or 9x EBITDA ▪ Financed by: ✓ Debt: US$1.15bn (US$970m LBO loans by DMFI and US$180m loans by DMPL) ✓ Equity: US$525m (US$75m equity, US$150m Rights and US$300m Preference Shares) ▪ Turned around in FY2021 (ending Apr
Slide 18: DMFI's Transformation
DMFI’s Transformation DEL MONTE THEN DEL MONTE NOW Exclusive focus on center of store Portfolio extended into high-growth grocery categories categories sold across diverse channels Limited innovation and investment to Revitalized and strengthened brands supported by contemporize brands category-lead
Slide 19: Innovation Aligned with Consumer Trends
Innovation Aligned with Consumer Trends Supports flexitarian On-the-go offerings to Enhanced Perceived as the Support cooking diets and functional support remote work demand for highest quality convenience food demand and distance learning everyday value New Products are now 5-6% of sales 19
Slide 20: DMFI's Turnaround
DMFI’s Turnaround DMFI Revenue 1H FY2022 Sales split by Channel (US$m) Others 13.5% 1,421.3 1,529.8 1,483.1 714.9 775.6 Latin America 2.6% Private Label Branded FY2019 FY2020 FY2021 1H2021 1H2022 4.7% Retail DMFI Organic EBITDA 73.7% Foodservice (US$m) 5.4% EBITDA 4.6% 7.6% 11.5% 9.5% 14.0% margin (
Slide 21: Repositioned Business Model Generates Strong Free Cash Flow
Repositioned Business Model is Highly Efficient and Generates Strong Free Cash Flow 21
Slide 22: Growth Initiatives and Deleveraging
Growth Initiatives and Deleveraging 22
Slide 23: Asia Initiatives
Asia Initiatives
Slide 24: DMPI's Resilient Growth
DMPI’s Resilient Growth ▪ Del Monte Philippines, Inc. (DMPI) is DMPL’s 2nd largest and most profitable subsidiary. More than half of sales comes from Philippines while the balance are exported Strong financial track record with leading profit margins Growth and margin expansion underpinned by DMPI’s
Slide 25: Philippines Ongoing Campaigns
Philippines Ongoing Campaigns FRUITS AND CULINARY: Building Relevance in Everyday Meal Occasions ▪ Cooking with Del Monte pineapple for everyday meals ▪ Del Monte Fiesta “Birthday Staylebrations” campaign focused on the education, ease, and variety of dessert recipes ▪ Promote regular usage of Del M
Slide 26: Philippines Innovation and Renovation
Philippines Innovation and Renovation 26
Slide 27: Philippines Del Monte Vinamilk
Philippines Del Monte Vinamilk WHAT IS DEL MONTE-VINAMILK? ▪ JV with Vinamilk Dairy of Vietnam ▪ Launched in September 2021, focused on ready-to-drink milk, yogurt and milk tea with highly relevant fortification PERFORMANCE IN 1H FY2022: ▪ Shipped 171K cases after only two months ▪ Pipelined in 1,78
Slide 28: S&W Fresh Pineapple
S&W Fresh Pineapple • Total fresh sales grew by 5% in 1H FY2022 with the S&W- branded pineapple up by a stronger 15% • S&W pineapples sold in China benefitted from expanded distribution coverage with 1,500 new stores from the Company’s top three distributors in China • The Company expects improvemen
Slide 29: DMPL Group Financials, Strategy and Outlook
DMPL Group Financials, Strategy and Outlook
Slide 30: 5-Year Financials
5-Year Financials Significant turnaround in profit and margins 30
Slide 31: 1H FY2022 Results ending Oct 2021
1H FY2022 Results ending Oct 2021 1H 1H In US$m Chg (%) Comments FY2021 FY2022 Higher USA and international market sales including Turnover 1,036.5 1,113.1 +7.4 S&W business in Asia Gross profit 253.9 311.9 +22.9 Higher sales, better sales mix in USA, price increases EBITDA 136.8 182.3 +33.3 Same as
Slide 32: Balance Sheet
Balance Sheet ▪ Gearing of 2.3x equity as of 31 October 2021 from 2.6x in the prior year ▪ Net debt/EBITDA improved to 4.3x from 5.8x on strong operating performance ▪ US$1.57bn debt of which US$500m is in USA at 12% rate due 2025 >> to be refinanced at a lower rate leading to interest savings ▪ Bal
Slide 33: PE and Dividends
PE and Dividends Attractive PE Attractive dividend yield Minimum 33% dividend payout 33
Slide 34: Our Strategies
Our Strategies 1 2 3 Continue to innovate Expand leadership in Continue executing on the and elevate Del Monte’s premium fresh Company’s operational and commercial excellence brand heritage pineapples • Drive margin enhancement • Capture new growth • Enhanced distribution • Maintain strong distribut
Slide 35: Outlook
Outlook ▪ DMPL is well-positioned in this environment given its nutritious and long shelf-life products which enable consumers to prepare healthy meals at home and build their immunity ▪ DMPL is well-placed to build on momentum achieved in FY2021 and expects to offset the impact of commodity and tra
Slide 36: Strong Environmental, Social and Governance Ethos
Strong Environmental, Social and Governance Ethos Sustainability Inspires What We Do PEOPLE PLANET Nourishing consumers Preserving nature • Negative carbon emissions • Nutritious food and beverage We nourish consumers We preserve nature in Pineapple Plantation products sourced sustainably with quali
Slide 37: Governance, Awards
> Governance, Awards SINGAPORE CORPORATE AWARDS 14 Awards Best Managed Board Gold 2010 | 2015 Best Chief Financial Officer 2010 Best Investor Relations Gold 2011 | 2017 Bronze 2014 Best Annual Report Gold 2019 Silver 2013 | 2018 Bronze 2010 | 2012 | 2014 | 2016 | 2017 NOURISHING FAMILIES. ENRICHING
Slide 38: Investment Merits
Investment Merits Solid Fundamentals Growth Drivers • Well-known premium Del Monte and S&W • DMFI’s sustained growth brands • S&W fresh pineapple exports • Long heritage of 136 years • New product categories / innovation • Leading market shares in the USA, Philippines • Deeper reach in existing mark
Slide 39: Thank You
Thank You For enquiries, pls contact: Jennifer Luy Investor Relations Manager jluy@delmontepacific.com www.delmontepacific.com
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