John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (October 2014)
79 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Oct 28, 2014
Slide 1: FY 2014 Annual Stockholder Meeting
FY 2014 Annual Stockholder Meeting October 29, 2014 Exhibit 99.1
Slide 2: Time to Celebrate Successful Results
Diluted EPS Improvement of 49% Net Sales increased by 11% to a record $778.6 million Time to Celebrate Successful Results over the last three years 0.5 1.5 2.5 FY12 FY13 FY14 EPS FY 12-FY 14
Slide 3: Creating Shareholder Value
Creating Shareholder Value JBSS Russell 2000 Outperformed the Russell 2000 Index by over 40%! Stock Price $34.57 10/27/2014 Stock Price $22.97 10/25/2013
Slide 4: Mission and Core Values
Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our shareholders . We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of ou
Slide 5: John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission from Snack Food & Wholesale Bakery Magazine
Slide 6: Strong team and facility employees
“The success of any company is contingent upon having a strong team to manage and grow the business. We have that here at JBSS.” Gustine, CA 130 Employees Garysburg, NC 38 Employees Bainbridge, GA 102 Employees Selma, TX 167 Employees Elgin, IL 857 Employees
Slide 7: John B. Sanfilippo & Son, Inc. Transformed Consumer Products Company
John B. Sanfilippo & Son, Inc. Transformed Consumer Products Company … Reproduced with permission from Snack Food & Wholesale Bakery Magazine
Slide 8: John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission from Snack Food & Wholesale Bakery Magazine
Slide 9: Retail Prices Higher Over the Last 5 Years
$4.53 $4.70 $5.31 $5.62 $5.68 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Price Per Pound Price Per Pound Category Retail Prices Higher Over the Last 5 Years Source: IRI: Total Nut Category – Multi Outlet Geography –Year Ending 6/29/14
Slide 10: Retail Prices Up Across All Nut Types over the Last 5 Years
0% 10% 20% 30% 40% 50% 60% Price Per Pound – Percent Change Over Last 5 Years Change vs. FY 2010 Retail Prices Up Across All Nut Types over the Last 5 Years +56% +46% +20% +18% +15% +29% +39% +26% +22% Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 11: Nut Category has had strong Sales Growth
Nut Category has had strong Sales Growth Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 12: Category Growth Across the Store
Category Growth Across the Store +26% +4% +42% +5% +32% +8% Snack Nuts Produce Nuts Recipe Nuts Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14
Slide 13: JBSS Growth (Gross Sales) Across the Store
JBSS Growth (Gross Sales) Across the Store +38% +244% +22% Snack Nuts Produce Nuts Recipe Nuts Source: Internal JBSS Shipment Data
Slide 14: Business Channel Diversification
$193 $98 $454 Business Channel Diversification (Millions of $) $34 Fiscal 2014 Net Sales $779 Million
Slide 15: FY 2014 Consumer Channel
Consumer 58% vs. FY ‘13 FY 2014 Consumer Channel Fiscal 2014 Net Sales $454 Million
Slide 16: FY 2014 Commercial Ingredients Channel
vs. FY ‘13 FY 2014 Commercial Ingredients Channel Fiscal 2014 Net Sales $193 Million
Slide 17: FY 2014 Export Channel
FY 2014 Export Channel Fiscal 2014 Net Sales $34 Million
Slide 18: FY 2014 Contract Packaging Channel
Contract Packaging 13% Vs. FY ‘13 FY 2014 Contract Packaging Channel Fiscal 2014 Net Sales $98 Million
Slide 19: Strategic priorities: brands, global expansion, key customers
Build Fisher and Orchard Valley Harvest into leading nut brands, Utlize consumer insights to develop products and integrated marketing programs that build brand equity meet consumer needs, and grow the category for our retail partners. Focus on consumers demanding quality nuts in snacking, recipe an
Slide 20: FY 2014 Accomplishments
• Fisher Recipe Nuts market share leadership excluding club size items • Fisher Snack Nuts market share growth in high franchise Midwest • Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth • Award-winning marketing programs FY 2014 Accomplis
Slide 21: FY 2014 Accomplishments
• Established a Foreign Invested Commercial Enterprise (FICE) in China • Expanded Fisher Snacks in Asia and the Middle East • Continued to leveraged key retail partnerships for a record year with private brands FY 2014 Accomplishments
Slide 22: China
China FY13 Gift Pack FY14 Gift Pack Chinese New Year • Step-change in packaging and execution … Growth in sales and points of distribution year-over-year. Great performance in key Ecommerce platforms
Slide 23: Increased Fisher Distribution in Asia and Middle East
Increased Fisher Distribution in Asia and Middle East • South Korea • Malaysia • Macau • Hong Kong • Saudi Arabia • U.A.E.
Slide 24: Selective Expansion of Private Brand Business
Selective Expansion of Private Brand Business Leverage key retail partnerships … focus on value-added opportunities. Mexico Japan Colombia
Slide 25: FY 2014 Accomplishments
• Received Contract Manufacturing supplier quality award • Optimized Food Service and Industrial Ingredient customer and product portfolios • Expanded Continuous Improvement efforts throughout our organization FY 2014 Accomplishments
Slide 26: FY 2014 Financial Milestones
FY 2014 Financial Milestones
Slide 27: JBSS Stockholders' Equity FYs 1991-2014
JBSS Stockholders’ Equity FYs 1991-
Slide 28: JBSS Net Sales FYs 1991-2014
JBSS Net Sales FYs 1991- Item Rationalization, De-emphasized Commodity Sales, Lower Prices Low Carb Diet Run Up
Slide 29: JBSS Total Outstanding Debt FYs 1991-2014
JBSS Total Outstanding Debt FYs 1991- Facility consolidation Improved operating performance
Slide 30: JBSS Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – Note: FY 1997 reflects stub year
Slide 31: Reconciliation of Net (Loss) Income to EBITDA
(In $,000's) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 NET INCOME (LOSS) 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 INTEREST EXPENSE 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 INCOME TAX (BENEFIT) EXPENSE
Slide 32: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 33: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure
Slide 34: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % Source: Spot market prices from survey of JBSS vendors and brokers
Slide 35: Highlights: Q1 2015 vs. Q1 2014
Highlights: Q1 2015 vs. Q1 2014 (in 000’s except EPS) $ Chng. % Chng. Net Sales $ 28,340 16.0% Sales Volume (lbs. sold ) 4,055 7.1% Gross Profit $ 1,315 4.5% Net Income * ($ 860) (12.7%) Earnings Per Share ($ 0.08) (13.1%) Operating Cash Flows $ 20,455 276.3% Total Debt ($11,385) (16.4%) * Adversely
Slide 36: FY 2014 Sales & Marketing Update
FY 2014 Sales & Marketing Update
Slide 37: Grow Brands: Recipe Nuts, Snack Nuts
Grow Brands Recipe Nuts Snack Nuts
Slide 38: Fisher is a Growing Brand
Fiscal 2014 Actual vs. Prior Year 3 Year CAGR Fisher is a Growing Brand Sales Pounds +7% +7% Net Sales +6% +6% Sales Pounds +1% +1% Net Sales +8% +8%
Slide 39: Total Fisher Brand has Grown Dollar Share
Total Fisher Brand has Grown Dollar Share over the last 3 Years Source: IRI:Ttl Nut Category – Multi Outlet Geography Year Ending 6/29/14
Slide 40: Slide 40
Slide 41: Strong and Sustained Growth on Fisher Recipe Nuts
Strong and Sustained Growth on Fisher Recipe Nuts 34 Consecutive Quad-Weeks of Increased IRI measured Consumption! Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography – Latest Quad Weeks Ending 10/5/14
Slide 42: Success Driven by both Increased Distribution and Movement
Success Driven by both Increased Distribution and Movement Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Commodity Volume” and “Velocity” is pounds per point of distribution as measured by IRI
Slide 43: Differentiating versus competition with No Preservatives Message
Differentiating versus competition with “No Preservatives” Message Print
Slide 44: Building Fisher Brand Equity with Food Network Sponsorship
Recipes Food Network Vignettes Digital and Mobile Recipe Contest Food Network Magazine Social Media and PR Building Fisher Brand Equity with Food Network Sponsorship
Slide 45: We extend our reach through Print
We extend our reach through Print that reaches our Core Consumer
Slide 46: Expanding Social Media Presence with Fisher Fresh Thinkers
Expanding Social Media Presence with “Fisher Fresh Thinkers”
Slide 47: Brand-Building Marketing Recognized with Industry Awards
Reggie Gold Award Brand Activation Association (March 2014) Golden Trumpet Gold Award Publicity Club of Chicago (June 2014) Brand -Building Marketing Recognized with Industry Awards
Slide 48: Winning the year is about Pounds-on-the-floor
Winning the year is about Pounds-on-the-floor Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Commodity Volume” as measured by IRI
Slide 49: Fisher display vehicles deliver our consumer message in-store
Importantly, Fisher display vehicles deliver our consumer message in-store Source: Internal JBSS Shipment Data
Slide 50: Win the holidays = win the year
Win the holidays = win win the the year year Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/29/14 *Note: ACV refers to “All Commodity Volume” as measured by IRI
Slide 51: Fisher recipe example: spiced pecans
Ne ae Ti aw spiced pecans Prep Time: 10 minutes e Cook Time: 8 minutes Serves: 8 2 Ths unsalted butter 4/2 tsp salt 1/4 tsp ground black pepper 4/2 tsp ground cinnamon - Utes pound aleplos =of| FALL ENTERTAININGS 2 cups pecan halves hed 1 Tbs sugar Ina skillet, over medium-low heat melt butter. Stir
Slide 52: Recipe Nut Distribution
Recipe Nut Distribution Recipe Nut Distribution National Distribution Updated 10.8.14 Hawaii
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Slide 54: Fisher Snack Nut Strategy Focused on Midwest High Franchise Markets
Fisher snack nut Strategy Focused on Midwest High Franchise Markets
Slide 55: Fisher snack nuts Growing Pound Share in High Franchise Markets
Fisher snack nuts Growing Pound Share in High Franchise Markets Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/29/14
Slide 56: Success driven by Improved Distribution and Movement
Success driven by Improved Distribution and Movement Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Year Ending 6/29/14 *Note: TPDs refers to Total Points of Distribution and Velocity refers to pounds per point of distribution as measured by IRI
Slide 57: Driving Results on Core Dry Roast Peanut Business
Source: Blue Chip Worldwide SPARQ concept research, December 2013 Driving Results on Core Dry Roast Peanut Business • “ Oven Roasted, Never Fried” communication drives purchase interest • Elevates taste and healthy snack perceptions • Supported through FSIs, In-Store and via Digital
Slide 58: Growing Fisher Almond line
Velocity (Pound Sales per Distribution Point) Source: IRI Growing Fisher Almond line • Converted Almond line to 5.5 oz Stand Up Re-sealable bags • Consumer Value Proposition: Better per package price; Re-closeable to seal-in freshness • Result: Increased movement per point of distribution Source: IR
Slide 59: Increasing the number of SKUs on-shelf
Importantly, we are increasing the # of SKUs* on-shelf Source: IRI Ttl Snack Nut Category – Fisher High Franchise Geography –Year Ending 6/29/14 *Note: SKUs refer to Stock Keeping Units
Slide 60: Fast adapting to key retailers' rules on displays
We are fast adapting to key retailers’ rules on displays… winning again!
Slide 61: Snacks Distribution
Snacks Distribution Snacks Distribution Updated 10.14.14
Slide 62: Pure and Simple Goodness
Pure and Simple Goodness
Slide 63: Orchard Valley Harvest Brand Equity
Orchard Valley Harvest Brand Equity Pure & Simple Goodness Support a healthy lifestyle Close to the earth
Slide 64: Orchard Valley Harvest Delivers
Orchard Valley Harvest Delivers
Slide 65: Orchard Valley Harvest is a Growing Brand
Orchard Valley Harvest is a Growing Brand Fiscal 2014 Actual vs. Prior Year Sales Pounds + 9% + 9% Net Sales +16 +16 % %
Slide 66: Mini's and Multi-Packs Tap into On the Go Snacking
Mini’s and Multi-Packs Tap into “On the Go” Snacking Grab ‘n Go Mini’s Multi-Packs Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 • Snacking accounts for over 53% of all eating occasions in the US • 38% of consumers snack several t
Slide 67: Packaging
Packaging - Orchard Valley HARVEST* Pure & Simple Goodness”
Slide 68: Driving Increased Distribution
Driving Increased Distribution FY13 Driver: FY14 Driver: Source: IRI: Ttl Produce Nut Category – Total US Food Geography–Year Ending 6/29/14 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 69: Driving Increased Movement
Driving Increased Movement Source: IRI Ttl Produce Nut Category – Total US Food Geography– Quad Weeks Ending 9-7-14
Slide 70: Displays drive sales in produce
Displays drive sales in produce Source: Internal JBSS Shipment Data
Slide 71: Slide 71
Slide 72: John B. Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
Slide 73: Principles of Successful Strategy
Principles of Successful Strategy • Differentiation – create distinction from competition • Focus – tradeoffs to allocate resources • System – building interrelated network of activities
Slide 74: Build Fisher and Orchard Valley Harvest into leading nut brands
nut brands Fisher Utlize consumer insights to develop products and “2S integrated marketing programs that build brand equity — meet consumer needs, and grow the category for our retail partners, Focus on consumers demanding quality nuts in snacking, recipe and produce categories. ACCOUNTABILITY : CO
Slide 75: Expand Globally
£5 IOHN - SANFILIPPO & SON, IN wat F BOE Pas aan tare so i 30 EXPAND GLOBALLY * Build JESS into a leading premium international snack rut company. * Grow Fisher and other JBSS brands through expanded | == distribution and consumer led brand building. Leverage aii select value-added private brand par
Slide 76: Create Value with Key Customers
NIN - SAN -O & SON, Fisher Nut Culinary Competition CREATE VALUE WITH KEY CUSTOMERS * Be the preferred partner to build profitable volume of value-added nut and snack products, * Offer supply chain expertise, qual, flexibility, innovation and customer support that creates value for our partners. ‘©
Slide 77: Vision and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 78: In memory of Jerry Burgdoerfer
In memory of Jerry Burgdoerfer
Slide 79: John B. Sanfilippo & Son, Inc.
- SANFILIPPO & SON, INC.
Sanfilippo John B & SON — Shareholder Meeting (October 2014) on 6ix