Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Barclays Global Consumer Staples Conference 2016
30 slides from Hormel Foods's conference presentation, Sep 7, 2016
Slide 1: Barclays Global Consumer Staples Conference
BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE — Inspired People. , Inspired Food. 9_©
Slide 2: Jim Sheehan, Vice President and Chief Accounting Officer
Jim Sheehan Vice President and Chief Accounting Officer
Slide 3: Legal Disclosure
Legal Disclosure This presentation contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors on pages 33-40 in the Company’s Form 10-Q f
Slide 4: Third Quarter Results
2016 Third Quarter Results Revenue Earnings per share In billions 2015 Q3 $2.19 2015 Q3 $0.27 2016 Q3 $2.30 2016 Q3 $0.36 + 5% + 33% • Record for the quarter • Three of five segments delivered sales, volume, and earnings growth
Slide 5: 2016 Third Quarter Segment Results
2016 Third Quarter Segment Results NET SALES SEGMENT PROFIT CHANGE CHANGE Refrigerated Foods + 9% + 24% Jennie-O Turkey Store + 20% + 59% International & Other + 5% + 5% Grocery Products + 3% Flat Specialty Foods - 25% - 13%
Slide 6: Priorities for Cash Flow
2010 - YTD Q3 2016 Priorities for Cash Flow in millions BUSINESS RETURN TO $2,500 GROWTH SHAREHOLDERS $2,000 $2,362 $1,500 $1,000 $1,240 $896 $500 $484 Organic Strategic Dividends Share Investments Acquisitions Repurchase
Slide 7: Return on Invested Capital
Return on Invested Capital 30% 25% 20% 15% 10% 5% 0% -5% Based on fiscal 2010-2015 data for Hormel Foods and time relative data for peers
Slide 8: Process Innovation
Administrative Cost g Capacity Management _ Optimization
Slide 9: Our Balanced Model
Our Balanced Model Protein Packaged Foods Pork and Turkey Nuts, Avocados, Tomatoes Retail Foodservice Financially Innovative Conservative Culture Grocery Refrigerated Jennie-O Specialty International Products Foods Turkey Store Foods
Slide 10: Jim Snee, President and Chief Operating Officer
Jim Snee President and Chief Operating Officer
Slide 11: 2016 Outlook
2016 Outlook EPS Refrigerated Foods • Favorable input costs • Refrigerated Foods growth in retail and foodservice $2.00 + 21% to 24% driven by Hormel ® Natural Choice® and Hormel ® Bacon 1™ fully cooked bacon brands Grocery Products $1.50 $1.60 to • Favorable input costs $1.32* $1.64 • Grocery Produ
Slide 12: Growth Amidst Volatility
Growth Amidst Volatility $2.00 HORMEL FOODS EPS Avian $1.60 Influenza to $1.64 $1.50 Higher PEDv Input High Costs Grain Costs Recession $1.00 Stock Market Woes $0.50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 13: Positioning our Portfolio for Future Growth
Positioning our Portfolio for Future Growth
Slide 14: Guacamole Salsa
‘Guacamole Salsa eee ; : a Jags f can : = BA La) li 4 : pire : Ready-to-Drink Protein Beverages #2 Market Share BARS
Slide 15: Meat as a Snack
Meat as a Snack + 5.8%* 2013 2016 Hormel Foods Internal data Category Sales *3 Year CAGR
Slide 16: Nut Butter
Nut Butter + 3.7 21.1 17.4 2013 2016 Hormel Foods Nut Butter IRI market share data for calendar 2013 to L52 weeks 7/31/16 Market Share
Slide 17: MegaMex
MegaMex + 5.0%* + 6.8%* 7.7 7.3 6.5 5.8 2013 2016 2013 2016 HOUSEHOLD HOUSEHOLD PENETRATION PENETRATION * 3 YEAR CAGR IRI Panel data for calendar 2013 to L52 weeks 6/12/16
Slide 18: Turkey's Share of Ground Meats
TURKEY'S SHARE OF GROUND MEATS 12.3% 11.8% 10.6% 9.3% 8.7% 8.3% 7.4% 2010 2011 2012 2013 2014 2015 2016 The four weeks ended 7/6/2016. IRI market share data calendar 2010-2015 and L52 weeks 7/03/16
Slide 19: Barclays Global Consumer Staples Conference
BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE
Slide 20: Innovation Challenges
‘Biillo 15% 2016 «= 2620 GLOBAL CONSUMER STAPLES CONFERE?
Slide 21: A Formula For Success
A Formula For Success Building Innovation Acquisitions Balanced brands Portfolio + + +
Slide 22: A Track Record of Growth
A Track Record of Growth & & * * *Fiscal years 2010-2015 CAGR
Slide 23: Driving Shareholder Returns
Driving Shareholder Returns $400400 Hormel $350350 Foods $328 $300300 S&P 500 Pkg $250250 Food & Meats $252.30 $200200 S&P 500 $192.43 $150150 $100100 $50 50 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 $100 invested on 1/3/11 in stock or index – in
Slide 24: Ri HeRDEZ
= Ri HeRDEZ ‘Guacamole Sals Were inspired by ~ Big id dsmall ANNIVERSARY
Slide 25: Jeff Ettinger, Chairman of the Board and Chief Executive Officer
Jeff Ettinger Chairman of the Board and Chief Executive Officer
Slide 26: Inspired People
——— People. iD: Tnspired Food: BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE
Slide 27: Senior Management Team Average Tenure
Senior Management 26 YEARS Team Average TENURE
Slide 28: Core Management Team Average Tenure
Core Management 23 YEARS Team Average TENURE
Slide 29: Financial Performance Goals
Financial Performance Goals 5% Sales Growth 10% Profit Growth
Slide 30: Barclays Global Consumer Staples Conference
BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE — Inspired People. , Inspired Food. 9_©
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