Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2018 Earnings Presentation
21 slides from Tyson Foods's earnings presentation, Nov 13, 2018
Slide 1: Q4 FY2018 Supplemental Information
— Q4 FY2018 Supplemental Information November 13, 2018
Slide 2: Today's Speakers
Today’s Speakers Noel White Stewart Glendinning President & CEO EVP & CFO
Slide 3: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2019, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 4: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Deliver Grow Sustain ongoing financial fitness our businesses our company and through continuous through differentiated our world for future improvement. capabilities. generations. 4
Slide 5: Beef Segment Results
Beef Segment Results Adjusted Operating Income1 Q418 Sales volume ↑3.4% ($ in millions) Average price ↓0.6% Dollars ROS% FY18 Sales volume ↑3.1% Average price ↑1.2% Q418 $348 8.9% FY19 Outlook Adjusted Operating Margin 1 FY18 $1,044 6.7% >6% 1Represents a non-GAAP financial measure. Adjusted operati
Slide 6: Pork Segment Results
Pork Segment Results Adjusted Operating Income1 Q418 Sales volume ↓2.7% ($ in millions) Average price ↓14.5% Dollars ROS% FY18 Sales volume ↓2.1% Average price ↓4.8% Q418 $76 6.7% FY19 Outlook Adjusted Operating Margin 1 FY18 $374 7.7% Around 6% 1Represents a non-GAAP financial measure. Adjusted ope
Slide 7: Chicken Segment Results
Chicken Segment Results Adjusted Operating Income1 Q418 Sales volume ↑10.4% ($ in millions) Average price ↓7.0% Dollars ROS% FY18 Sales volume ↑4.9% & Average price ↑0.7% Q418 $182 5.8% FY19 Outlook Adjusted Operating Margin 1 FY18 $947 7.9% Near 8% 1Represents a non-GAAP financial measure. Adjusted
Slide 8: Prepared Foods Segment Results
Prepared Foods Segment Results Q418 Sales volume ↑0.7% 2 Adjusted Operating Income1 ($ in millions) Average price ↑0.6% Dollars ROS% FY18 Sales volume ↑9.8% 2 Average price ↑6.1% Q418 $235 11.2% FY19 Outlook Adjusted Operating Margin 1 FY18 $979 11.3% >11% 1Represents a non-GAAP financial measure. A
Slide 9: FY18 Highlights
FY18 Highlights ($ in millions, except per share data) Q418 FY18 Sales $9,999 $40,052 • Record adjusted EPS of $6.16, up 16% 1,2 Adjusted Operating Income1 $831 $3,291 from last year Adjusted Operating Margin1 8.3% 8.2% Adjusted EPS1 $1.58 $6.16 • Record adjusted operating income of 1 $3.291B Adjust
Slide 10: FY19 Outlook
FY19 Outlook 1 SALES CAP EX ADJUSTED EPS2 ~$41B ~$1.5B $5.75-6.10 ADJUSTED OPERATING MARGIN BEEF PORK CHICKEN PREPARED FOODS >6% around 6% near 8% >11% 1 Does not include expected results for the Other segment. 2 Projected Adjusted EPS as of 11/13/18. Represents a non-GAAP financial measure. Adjuste
Slide 11: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Deliver Grow Sustain ongoing financial fitness our businesses our company and through continuous through differentiated our world for future improvement. capabilities. generations. 11
Slide 12: Tyson Innovation Focus Areas
Tyson Innovation Focus Areas Shifts in eating, shopping and macro consumer trends inspired five platform innovation focus areas Flexible Eating Real Food. Personalized Valuing the Extremes Cultural More Fresh. Health Currency Three meals a day is Fresh, whole foods Consumers are looking Both ends of
Slide 13: FY19 Priority Project Launches
2019 Innovation There is a strong pipeline of innovation planned in FY19 within each of the five focus areas. Tyson® Dinner & Entrée Kits Food Service launch FY19 Priority Project Launches of Jimmy Dean Delights® Tyson® Any’tizers® Egg'wich Sandwich Chicken Chips Tyson® Any’tizers® Chicken Bites & R
Slide 14: 2019 Innovation Pipeline Highlights - Prepared Foods
2019 Innovation Pipeline Highlights - Prepared Foods Exciting innovation for 2019 True Chews® Meal MakersTM Hillshire Farm® Jimmy Dean® Handhelds Dog Treats Hot Sandwich Starters Tajin Platform Meal Toppers to add Capitalize on hot sandwich Leverage Hillshire Farm® Expansion into handheld forms flav
Slide 15: 2019 Innovation Pipeline Highlights - Chicken
2019 Innovation Pipeline Highlights - Chicken Exciting innovation for 2019 Chicken Chips Tajin® Cooked Sous Vide Chicken Partner with Tajin®, an Operators can serve Expansion in protein-packed consistent, high quality, snacking with new snackable on-trend growth brand, to bring authenticity and juic
Slide 16: Dollar Performance Core 9 and Total Tyson
Dollar Performance Core 9 and Total Tyson Dollar Sales % Change Among Top 10 Branded Food Companies >$5B 2.7% 2.3% 2.0% 2.0% 1.9% -0.1% -0.2% -0.3% -0.5% CORE 9 TOTAL -1.4% -1.6% TOTAL -2.0% F&B Source: IRI Total U.S. Multi-Outlet (x Costco), Dollar Sales, 52 weeks ending 9/30/2018 Includes Total Ed
Slide 17: Volume Performance Core 9 and Total Tyson
Volume Performance Core 9 and Total Tyson Volume Sales % Change Among Top 10 Branded Food Companies >$5B TOTAL 4.9% 1.5% 0.8% 0.7% 0.5% 0.3% CORE 9 TOTAL -0.2% -0.4% -0.7% F&B -2.6% -5.4% -8.2% Source: IRI Total U.S. Multi-Outlet (x Costco), Dollar Sales, 52 weeks ending 9/30/2018 Includes Total Edi
Slide 18: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. Prior Year (52 weeks ending August 2018) 3.4% 3.1% 1.4% Total Broadline Focus 6 Categories Tyson Focus 6 Source: NPD SupplyTrack ® data, 52 weeks ending August 2018. Excludes Large Chain and Operator Label data Focus Six = Chicken Value Ad
Slide 19: Appendix: Q4 FY2018 Non-GAAP Reconciliations
Appendix Q4 FY2018 Non-GAAP Reconciliations
Slide 20: EPS Reconciliations
EPS Reconciliations In millions, except per share data Twelve Months Ended (Unaudited) Fourth Quarter September 29, 2018 Pretax Impact EPS Impact Pretax Impact EPS Impact 2018 2017 2018 2017 2018 2017 2018 2017 Reported net income per share attributable to Tyson $ 1.47 $ 1.07 $ 8.19 $ 4.79 Add: One-
Slide 21: Segment Operating Income & Operating Margin Reconciliations
Segment Operating Income & Operating Margin Reconciliations In millions, except Adjusted Segment Operating Income (Loss) per share data (for the fourth quarter ended September 29, 2018) (Unaudited) P repared Intersegment Beef P ork Chicken Foods Other Sales Total Sales $ 3,913 $ 1,134 $ 3,115 $ 2,09