Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2016 Earnings Presentation
20 slides from Tyson Foods's earnings presentation, Nov 21, 2016
Slide 1: 4th Quarter Fiscal 2016 Earnings Supplemental Information
4th Quarter Fiscal 2016 Earnings Supplemental Information November 21, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected performance, and including, but not limited to, statements appearing in the “Outlook” section and statements relating to GAAP EPS guidance
Slide 3: FY16 – Another Record Year!
($ in Millions) FY16 Dollars ROS% Operating Income Chicken 1,305 11.9% -3% Beef 347 2.4% 755% Pork 528 10.8% 42% Prepared Foods 734 10.0% 15% Other (81) n/a n/a Total 2,833 7.7% 26% Adjusted YOY Growth * ($ in Millions) FY16 FY15 YOY Growth Net Sales* 36,881 40,623 -9% Adjusted Operating Income* 2,8
Slide 4: FY16 Adjusted EPS Growth Up 39% vs. 2015
*Represents a non-GAAP financial measure. Adjusted EPS is explained and reconciled in the Appendix at “Annual EPS Reconciliations.” FY16 Adjusted EPS Growth Up 39% vs. 2015 Projected 5-Year CAGR including midpoint of FY17 guidance = 19% 4 FY12 FY13 FY14 FY15 FY16 FY17 proj. $3.15* $2.26* $2.94* $4.3
Slide 5: FY16 Segment View: Sales and Operating Income by Segment
FY16 Segment View Sales $36.9 Billion Chicken 30% Beef 38% Prepared Foods 20% Pork 11% Other 1% 5 Sales and Operating Income by Segment ($ in Millions) FY16 Dollars ROS% Operating Income Chicken 1,305 11.9% -3% Beef 347 2.4% 755% Pork 528 10.8% 42% Prepared Foods 734 10.0% 15% Other (81) n/a n/a Tot
Slide 6: Core 9 and Total Tyson Leading in CPG Volume Performance
9.6% 5.9% 5.9% 1.1% -1.2% -2.3% -4.6% -6.3% -8.0% -8.2% -9.5% Core 9 Tyson Core 9 and Total Tyson Leading in CPG Volume Performance Volume sales % change among top 10 branded food companies > $5B Source: IRI Total U.S. Multi-Outlet Volume Sales (Edible Foods), 13 weeks ending 10/02/2016 6
Slide 7: Core 9 and Total Tyson Leading in CPG Dollar Performance
4.7% 2.1% -0.4% -0.4% -0.5% -0.8% -2.4% -2.9% -3.6% -6.1% -6.1% Tyson Core 9 and Total Tyson Leading in CPG Dollar Performance Dollar sales % change among top 10 branded food companies > $5B Core 9 Source: IRI Total U.S. All Outlet (x Costco) All Edible Food Dollar Sales, 13 weeks ending 9/18/2016 7
Slide 8: Marketplace Trends: Food Service Distribution
Marketplace Trends: Food Service Distribution 88 Tyson value-added chicken growing >2x faster than category Largest branded player; outpacing private label Tyson Foods Volume Growth Value-Added Chicken +3.9% Category Volume Growth Value-Added Chicken +1.7% Share Share ∆ Tyson Foods 33.1% 0.7 Private
Slide 9: FY16 – Another Record Year!
($ in Millions) FY16 Dollars ROS% Operating Income Chicken 1,305 11.9% -3% Beef 347 2.4% 755% Pork 528 10.8% 42% Prepared Foods 734 10.0% 15% Other (81) n/a n/a Total 2,833 7.7% 26% Adjusted YOY Growth * ($ in Millions) FY16 FY15 YOY Growth Net Sales* 36,881 40,623 -9% Adjusted Operating Income* 2,8
Slide 10: Operating Cash Flow
Operating Cash Flow Operating Cash Flow in millions FY12 FY13 FY14 FY15 FY16 $1,187 $1,314 $2,716 $2,570 $1,178 Strong Cash Flows to Fuel Future Growth 10
Slide 11: Net Debt/Adjusted EBITDA
Net Debt/Adjusted EBITDA* FY12*** FY13*** FY14** FY15* FY16*** $442*.7X .8X 3.0X 2.0X 1.7X Positioned for growth through rapid deleveraging *Represents a non-GAAP financial measure. Net debt/adjusted EBITDA is explained and reconciled to a comparable GAAP measure in the Appendix. ** FY14 Net Debt/EB
Slide 12: FY17 Outlook
FY17 Outlook 12 • EPS $4.70–$4.85, 7-10% adjusted EPS growth over FY16 • Expect similar revenue to FY16 as we grow volume across each segment • Net interest expense of ~$225 million • Effective tax rate of ~35% • CapEx of ~$1 billion • Average diluted shares of ~376 million* • 50% increase in Class
Slide 13: Q & A
Donnie Smith Chief Executive Officer Tom Hayes President Dennis Leatherby Executive Vice President & Chief Financial Officer 13 Q & A
Slide 14: Appendix: 4th Quarter Fiscal 2016 Non-GAAP Reconciliations
Appendix 4th Quarter Fiscal 2016 Non-GAAP Reconciliations
Slide 15: Sales, Operating Income and Operating Margin Reconciliations
Sales, Operating Income and Operating Margin Reconciliations 15 In millions (Unaudited) (a) The estimated impact of the additional week in the 12 months of fiscal 2015 was calculated by dividing unadjusted sales for the fourth quarter of fiscal 2015 by 14 weeks. (b) Impact of additional week was cal
Slide 16: Net Debt/EBITDA Reconciliations
Fiscal 2016 (a) Fiscal 2015 (a) Fiscal 2014 (a) Fiscal 2013 (a) Fiscal 2012 (a) Net income 1,772$ 1,224$ 856$ 778$ 576$ Less: Interest income (6) (9) (7) (7) (12) Add: Interest expense 249 293 132 145 356 Add: Income tax expense 826 697 396 411 351 Add: Depreciation 617 609 494 474 443 Add: Amortiza
Slide 17: Net Debt/EBITDA Reconciliations – continued
Net Debt/EBITDA Reconciliations – continued 17 (a) EBITDA and Adjusted EBITDA for fiscal 2015 were based on a 53-week year while fiscal 2016, 2014, 2013 and 2012 are based on a 52-week year. (b) (b) Excludes the amortization of debt discount expense of $8 million, $10 million, $10 million, $28 milli
Slide 18: Segment Operating Income Reconciliations
Segment Operating Income Reconciliations 18 In millions (Unaudited) (a) Impact of additional week was calculated by using the fourth quarter of fiscal 2015 adjusted operating income (prior to the additional week impact) and divided by 14 weeks. Adjusted segment operating income is presented as a sup
Slide 19: EPS Reconciliations
EPS Reconciliations 19 In millions, except per share data (Unaudited) (a) Impact of additional week was calculated by using the fourth quarter of fiscal 2015 adjusted operating income (prior to the additional week impact) and divided by 14 weeks. Operating Income EPS Operating Income EPS Operating I
Slide 20: EPS Reconciliations – continued
EPS Reconciliations – continued 20 In millions, except per share data (Unaudited) Operating Income EPS Operating Income EPS Operating Income EPS Operating Income EPS Operating Income EPS Reported from Continuing Operations 1,289$ 1.98$ 1,574$ 2.09$ (215)$ (1.47)$ 331$ 0.24$ 613$ 0.75$ Less: Gain fro