Calavo Growers, Inc. · NASDAQ:CVGW
Calavo Growers — Investor Presentation (November 2020)
29 slides from Calavo Growers's investor presentation, Nov 17, 2020
Slide 1: Calavo Growers, Inc. Investor Presentation
CALAVO GROWERS, INC. INVESTOR PRESENTATION NASDAQ GS: CVGWNOVEMBER 2020
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains statements relating to future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties
Slide 3: Global Leader in Avocados and Fresh, Prepared Food Categories
GLOBAL LEADER IN AVOCADOS AND FRESH, PREPARED FOOD CATEGORIES AVOCADOS Fresh Segment Procure, sort, pack, ripen, distribute avocados, tomatoes and papayas Avocados sourced primarily from Mexico, California, Peru and Colombia Foods, 7% RFG, 39% Fresh, 55% FRESH GRAB-N-GO Renaissance Food Group (RFG)
Slide 4: Core Strengths
CORE STRENGTHS Diversified Business Model of Three Growing and Complementary Market Segments Strong Market Defensibility Through Robust Operating Platform, Supply Chain Control and Long-term Relationships With Growers and Blue-chip Customers Experienced Leadership Team & Board of Directors Long Trac
Slide 5: First Name in Avocados, 100 Years in the Making
FIRST NAME IN AVOCADOS,100 YEARS IN THE MAKING Birth of a brand… Calavo the First Name in Avocados Calavo opens packinghouse in Mexico Calavo among first to leverage ripe/ sorting technology New facilities opened in Jacksonville, FL, Riverside, CA and Jalisco, Mexico Acquired SFFI (Simply Fresh) for
Slide 6: Long-Standing Relationships with Blue-Chip Customers
LONG-STANDING RELATIONSHIPS WITH BLUE-CHIP CUSTOMERS GROCERY RETAILERS E-COMMERCE/ONLINE MASS/CLUB STORES FOODSERVICE / RESTAURANT 6
Slide 7: Well-Positioned for Capital-Light Growth Ahead
WELL-POSITIONED FOR CAPITAL-LIGHT GROWTH AHEAD EXTENSIVE MULTI-NATIONAL FOOTPRINTSIGNIFICANT CAPEX HAS EXPANDED CAPACITY ($ Millions) FACILITY LEGEND Fresh Foods RFG $44.5 $30 $16.7 $18.1 $21.9 $11.6 $15.0 $6.7 FY13FY14FY15FY16FY17FY18FY19 4 Avocado packinghouses (2 US, 2 Mexico) 4 Value-added distr
Slide 8: Near-Term Priorities to Drive Long-Term Growth
NEAR-TERM PRIORITIES TO DRIVE LONG-TERM GROWTH One Maximize operating leverage and synergies by consolidating Fresh, RFG and Foods segments Continue transparent communications and increase engagement Company Drive organic growth in each operating segment with investment community Transparency Financ
Slide 9: Stronger as One
STRONGER AS “ONE” RFG ONE COMPANY and Synergies Operations Consolidate sales functions to maximize cross-selling opportunities Eliminate operational redundancies across three business segments Streamline operations and identify additional operating efficiencies and synergies People Consolidate the o
Slide 10: Fresh Segment
Fresh Segment
Slide 11: Fresh Segment Value Proposition
FRESH SEGMENT VALUE PROPOSITION CALAVO SERVES THE ENTIRE VALUE CHAIN BETWEEN GROWERS AND RETAILERS – WITH STRONG CAPABILITY TO CONTROL SUPPLY / DEMAND DYNAMICS FOR MAXIMIZING PROFITABILITY Avocado Growers Calavo Source Customer Retailers, Clubs and Foodservice Coordinate Picking Packing: Grading Siz
Slide 12: Fresh Highlights
FRESH HIGHLIGHTS Robust packing/value-added network in U.S. and Mexico (4 packing houses and 4 value-added distribution centers) provide year-round supply Long-term relationships with avocado growers worldwide Established customer base of blue-chip grocery retailers, club-stores, foodservice operato
Slide 13: Tasty Super Food
TASTY “SUPER FOOD” Avocados have the highest relative nutritional value per serving compared to other fruits(1) More consumers become aware of avocado’s nutritional value, especially in emerging markets Health Benefits of Avocados Heart health Digestive health Weight loss Diabetes Pre-natal health (
Slide 14: Significant Growth Opportunity Ahead
SIGNIFICANT GROWTH OPPORTUNITY AHEAD CALAVO IS WELL-POSITIONED TO MEET THE GROWING DEMAND FOR AVOCADOS DOMESTICALLY AND ABROAD U.S. AVOCADO CONSUMPTION (1) GEOGRAPHIC PENETRATION WITHIN US (2) (Billion Pounds) 20152016 2017 Actual 20182019202020212022202320242025 Forecast 2.1 2.2 2.1 2.5 2.5 2.9 2.8
Slide 15: Renaissance Food Group RFG Segment
Renaissance Food Group RFG Segment
Slide 16: RFG Value Proposition
RFG VALUE PROPOSITION TRUSTED PARTNER FOR QUALITY, INNOVATIVE FRESH AND PREPARED FOODS AMONG RETAILERS, FOOD SERVICE AND HOSPITALITY OPERATORS PRODUCT ASSORTMENTMANUFACTURING EFFICIENCY Expanding portfolio of fresh foods and prepared meals to redefine produce and value-added convenience FOOD SAFETY
Slide 17: RFG Highlights
RFG HIGHLIGHTS Strategic shift from co-packer partnership to company-operated facilities drives margin improvement (0.8pp improvement in gross margin 2019-2020 YTD July) Expanding product capabilities in fresh and prepared grab-n-go categories supported by national JIT distribution network Rapid vol
Slide 18: RFG Facilities and Capabilities
Portland, Oregon Sacramento, California Vineland, New Jersey Riverside, California Atlanta, Georgia Jacksonville, Florida Houston, Texas Organic Certification USDA Assembly Innovation Kitchen Fruit and Vegetable CAPABILITIES KEY
Slide 19: Foods Segment
Foods Segment
Slide 20: Expanding Line of High-Growth, High-Margin Avocado and Related Foods
EXPANDING LINE OF HIGH-GROWTH, HIGH-MARGIN AVOCADO AND RELATED FOODS Top-line growth of 9% CAGR 2014 to 2019 Strong demand for high-margin, Calavo and private label guacamole and salsa products from grocery-retailers and foodservice customers Facility improvements continue to enhance efficiency and
Slide 21: Leadership & Governance
eee ~ Leadership & Gevernance
Slide 22: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Jim Gibson, Chief Executive Officer Formerly President of Calavo’s Renaissance Food Group (RFG) Previously served as Chief Operating Officer and was a founding member of RFG Kevin Manion, Chief Financial Officer Formerly held CFO and financial leadership positions at Centur
Slide 23: Corporate Governance Initiatives
CORPORATE GOVERNANCE INITIATIVES CALAVO’S BOARD IS COMMITTED TO INCREASING BOARD INDEPENDENCE AND DIVERSITY WHILE REDUCING THE SIZE OF THE BOARD OVER TIME Board Independence Board Diversity Board Refreshment Created Sustainability Committee to enhance ESG focus and initiatives Appointed Farha Aslam
Slide 24: Financial Performance
CK -=_ <= Financial Perfermance mes 7 ae 4, Best +S
Slide 25: Track Record of Sustainable Growth and Consistent Annual Dividend Payout
TRACK RECORD OF SUSTAINABLE GROWTH AND CONSISTENT ANNUAL DIVIDEND PAYOUT 19 CONSECUTIVE YEARS OF DIVIDENDS, INCLUDING 9 CONSECUTIVE YEARS OF DIVIDEND INCREASES NET SALES DIVIDENDS $25 ($ Millions) $1,196 $1,076 $1,089 $1,117 $936 $857 COVID-19 impact $783 $691 $523$551 $398 $345 / share) $20 $15 $10
Slide 26: Commitment to ESG
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Slide 27: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY We believe sustainable practices support long-term value creation for all stakeholders. Calavo strives to be good corporate citizens pursuing environmental responsibility, social equity, and sound governance throughout our business and supply chain. ENVIRONMENTAL SOCIA
Slide 28: Social and Environmental Initiatives
Rolled out professional development training programs to nearly 2,000 employees Fair Trade Program: Provided $220,000 in healthcare services to workers, small growers, and their families Mexico Race for Charity: Raised $133,000 for various charities that support technology education programming effo
Slide 29: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Financial Profiles, Inc. Lisa Mueller, Senior Vice President 310-622-8231 Calavo@finprofiles.com CALAVO GROWERS, INC.
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