Del Monte Pacific Limited · SGX:D03
Del Monte Pacific — Non-Deal Roadshow (May 2013)
32 slides from Del Monte Pacific's roadshow presentation, May 26, 2013
Slide 1: Corporate Presentation 2013
C O R P O R AT E P R E S E N TAT I O N 2 0 1 3 1 As of 26 May 2013
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any jurisdiction or as an inducement to enter into investment
Slide 3: Agenda
Agenda I. Introduction A. Vision and Brand Ownership B. Del Monte Worldwide C. S&W Worldwide II. DMPL’s Business III. Growth Drivers IV. Financials V. Corporate Governance 3
Slide 4: Vision and Brand Ownership
T Vision and Brand Ownership Rights to premium Del Monte brand for the Philippines, Indian subcontinent and Myanmar -- for processed products Rights to premium S&W brand for Asia, Middle East, Europe and Africa -- for both processed and fresh products OEM Europe North America Asia Middle East Af
Slide 5: Del Monte Worldwide
Del Monte Worldwide History Del Monte brand originated in 1892 in California In the 1990 LBO days, private equity firm KKR broke up the Del Monte brand, resulting in a number of unaffiliated Del Monte companies with perpetual ownership of the brand in their respective market/product category wit
Slide 6: S&W Worldwide
S&W Worldwide History S&W brand originated in 1896 in California Del Monte Pacific acquired the brand for Asia, Middle East, Europe and Africa in 2007 Del Monte Foods owns the rights for the USA, while Manassen Foods for Australia and New Zealand Map S&W brand footprint of Del Monte Pacific no
Slide 7: Branded Business Growth
Branded Business Growth Significant expansion of the branded business from 50% in 2005 to 70% in 2012 Sales more than doubled from US$222m to US$460m during this period Branded business will sustain revenue growth and better margins DMPL Sales 7
Slide 8: DMPL's Business Streams
DMPL’s Business Streams BRANDED BUSINESS (about 70% of sales) Markets Main Brands Products Philippines Del Monte for processed Culinary (outsourced) : 40% Beverage : 40% Processed fruits : 20% Asia and Middle East S&W for processed and fresh Canned fruits, juices, beans, tomatoes, veg and Fresh pine
Slide 9: DMPL's Business Streams
DMPL’s Business Streams In 2012, the branded business, led by the Philippine Market, generated 70% of Sales and 89% of Operating Profit 2012 Sales Breakdown 2012 Operating Profit Breakdown US$459.7M US$49.9M Non-Branded Branded 9
Slide 10: Philippines
T T T Philippines T Market leader in a number of categories Philippine Market Sales o Canned pineapple: 80% o Canned mixed fruit: 74% o Canned RTD juices: 92% o Tomato sauce: 78% o Spaghetti sauce: 56% (Nielsen Retail Index, April 2013) Strong brand equity 70% General Trade, 30% Modern Trade
Slide 11: Del Monte Products in Philippines
T Del Monte Products in Philippines T 11
Slide 12: Philippines (cont'd)
T T T Philippines (cont’d) T ttewe 12
Slide 13: Integrated Pineapple Operations
T T Integrated Pineapple Operations T Manage consistency of quality, reliability of supply and stability of cost Plantation Cannery Fresh Packhouse Ocean Port ~23,000 ha. of Cannery capacity of State-of-the-art Ocean port plantation in the 700,000 tons is ½ hr fresh cold storage integrated into Phil
Slide 14: FieldFresh (India)
T T T FieldFresh (India) T Acquired 40% of FieldFresh in Sept 2007 Del Monte Processed Food Sales Stake increased to 47% via capital calls Voting control : 50% Bharti, 50% DMPL Vision: develop the Indian market for Del Monte branded processed products In Dec 2010, opened a new facility near
Slide 15: Del Monte Products in Indian Subcontinent
T Del Monte Products in Indian Subcontinent T See Appendix note 8 for details on sales breakdown by product category. See Appendix note 9 for details on distribution in India. 15 See Appendix note 10 for details on sales outside India.
Slide 16: S&W (Asia and Middle East)
Tt T S&W (Asia and Middle East) T Acquired S&W brand in Nov 2007 S&W Sales Global rights except for Americas, Australia/NZ Exceptional quality premium canned fruit and vegetable products: originated in USA in 1896 Brand is extendable to other packaging formats, and to fresh produce, an excel
Slide 17: S&W Products in Asia
T S&W Products in Asia T 17
Slide 18: S&W (cont'd)
T T T S&W (cont’d) T Japan -- fresh Middle East -- processed China and Korea -- fresh pineapple product pineapple See Appendix note 12 for details on S&W processed sales breakdown. ttewe See Appendix note 13 for details on South Korea and China contribution to S&W processed product sales. See Append
Slide 19: Growth Drivers
Growth Drivers Philippine Market Sales Major Earnings Drivers: 1. Del Monte Growth of the Philippine Market S&W Sales 2. S&W Processed Expansion in Asia and the Middle East 3. S&W / Fresh Fresh Sales Growth of fresh fruit, especially branded 4. Juice Mix Pineapple Juice Concentrate Price Shift from
Slide 20: Long Term Growth Drivers
Long Term Growth Drivers Major Earnings Drivers in 2015: 1. US Market DM US processed pineapple supply contract termination in November 2014 2. Fresh Market DM Fresh pineapple supply contract shifts to market pricing starting January 2015 3. PET Juice Tollpacking contracts in the Philippines expire
Slide 21: Full Year 2012
Full Year 2012 FY FY In US$m Chg (%) Comments 2011 2012 Due to the branded business in Asia, comprising of Del Monte in the Turnover 425.2 459.7 +8.1 Philippines and the Indian subcontinent as well as S&W in Asia and the Middle East Gross profit 101.4 112.8 +11.2 Higher volume and better sales mix H
Slide 22: First Quarter 2013
First Quarter 2013 1Q 1Q In US$m Chg (%) Comments 2012 2013 Higher sales due to branded Turnover 74.7 87.4 +17.0 business mainly the Philippines and S&W fresh Higher volume and better sales Gross profit 17.6 19.8 +12.2 mix offset higher logistics cost Weak performance in non Operating profit 8.6 7.8
Slide 23: Shareholder Value Enhancement
Shareholder Value Enhancement Dividend Policy of 33% payout exceeded in the past years (2005-12: 75% payout) Bonus share issue of 2:10 in April 2013 Dual listing in the Philippines 23
Slide 24: Corporate Governance
Corporate Governance Listed on the Singapore Exchange since 1999 Complies with the Code of Corporate Governance Ranked 61st among 674 Singapore-listed companies in the Governance and Transparency Index* in April 2012 Received 3 awards in 2010 and 1 award each in 2011 and 2012 from the Singap
Slide 25: Investment Merits
Investment Merits Solid Growth Shareholder Corporate Fundamentals Drivers Value Governance Immediate: • Well-known • S&W expansion in • Dividend Policy of 33% • Garnered 5 awards premium Del Monte Asia and the Middle payout exceeded in the from the Singapore and S&W brands East for both past (2005-1
Slide 26: Appendix
Del Monte Quality APPENDIX 26
Slide 27: SGX Listing
SGX Listing Listed on 2 August 1999 More than 7,000 shareholders, mostly retail 771 listed cos. 27
Slide 28: Rationale for PSE Listing
Rationale for PSE Listing Beneficial for the Company and its shareholders to have a dual listing on the Philippine Stock Exchange (PSE), for the following reasons: Provide DMPL with a platform to widen its investor base. In particular, it will enhance the Company’s attractiveness to investors in t
Slide 29: Summary of Share Transfer Process
Summary of Share Transfer Process (if shares will be immediately tradable in Philippines) If Shareholder holds physical Share certificates If Shares are lodged with CDP 1 Shareholder submits physical Share certificates to Singapore 1 Shareholder withdraws Shares from CDP Transfer Agent and reque
Slide 30: Summary of Share Transfer Process
Summary of Share Transfer Process (if shares will be immediately tradable in Singapore) If Shareholder holds physical Share certificates If Shares are lodged with PDTC 1 Shareholder submits physical Share certificates to Philippine 1 Shareholder instructs Philippine Broker to uplift Shares from
Slide 31: Appendix Notes
Appendix Notes Supplementary notes to slides 1. DMPL group employs 3,817 employees in the Philippines, 23 employees in Singapore and its JV has 280 employees in India. Aside from its direct employees, DMPL’s subsidiary provides employment to 6,648 seasonal workers. 2. Pineapple Juice Concentrate acc
Slide 32: Appendix Notes
Appendix Notes Supplementary notes to slides 8. Sauces and condiments segment account for almost half of total Del Monte processed foods sales in India. The Italian range – pasta, olives and olive oil – have a 20% revenue share. 9. In General Trade, the India JV covers 42,000 outlets directly and 30