John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (August 2004)
26 slides from John B. Sanfilippo & Son's investor presentation, Aug 11, 2004
Slide 1: John B. Sanfilippo & Son, Inc. August 4, 2004
John B. Sanfilippo & Son, Inc. August 4, 2004
Slide 2: Safe Harbor
Safe Harbor Some of the statements in this presentation constitute "forward-looking statements" about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we oper
Slide 3: What's Unique About JBSS?
What's Unique About JBSS? #1 nut processor and #2 full line nut brand Only vertically integrated major industry player Only sheller of all major domestic nuts Distribution in all channels Widest array of nut product and packaging solutions Impressive sales and income growth JBSS Financial Performanc
Slide 4: Successful Management Structure
Successful Management Structure Operating expertise over three generations, augmented with other professionals CEO and President continue to actively participate in further entrenching long-term customer and supplier relationships In the process of formalizing a succession plan for CEO and President
Slide 5: Direct Sourcing Competitive Advantage - Vertical Integration
Direct Sourcing Competitive Advantage - Vertical Integration Enhances stability and quality of supply Cold Storage Prolongs freshness and shelf life Shelling Reduces costs for basic processing Processing Meets a wide array of customer demands Packaging Customizes products for each customer and chann
Slide 6: Strategically Located Operations
Strategically Located Operations Our shelling facilities are strategically located close to the source of supply, while also allowing us to serve our customers in an efficient manner Our processing capabilities allow us to produce the broadest array of nut products in the industry in the industry in
Slide 7: Business Overview
Business Overview
Slide 8: Industry Growth Trends
Industry Growth Trends Snacks are a fourth meal An increasing awareness of the health benefits of nuts is driving growth FDA approval of qualified health claim USDA's pending revision of the food pyramid Aligned with low-carb/high-protein diets Distribution channels responding to trends Growth in in
Slide 9: Market Opportunity
Market Opportunity Current growth is outpacing industry projections - total U.S. retail sales of nuts grew 15.8% in LTM through May, 2004 We estimate the total U.S. nut market to account for approximately $4 billion in annual sales U.S. Retail Sales in Millions of Salted Snacks by Category (1997 - 2
Slide 10: One-Stop Nut Supplier
One-Stop Nut Supplier Most complete product portfolio of nuts in the U.S. Comprehensive variety of value- added products Wide assortment of other snack products Most versatile styles and sizes, customized to customer specifications Benefits Appeals to major customers Reduces product concentration ri
Slide 11: Distribution Channels
Distribution Channels Industrial Food Service Consumer Export Contract Packaging Products: Customer Types: Ingredients Fisher brand Other Ingredients Fisher brand Other Private label Fisher brand Other Private label Fisher brand Bulk Various packaging styles Bakeries Dairies Food processors Candy ma
Slide 12: In-Store Category Reach
In-Store Category Reach Check Out Cereal Health Bars Candy Cookies Frozen Entrees Cakes, Muffins Fresh Cheese, Salads Ice Cream Ingredients Salad & Baking Kits Contract Packaging Frozen Cakes, Desserts Food Service Fresh Bread Bulk Foods Single Serve Snacks Peanut Butter Snack Nuts Salty Snacks Baki
Slide 13: Consumer Distribution Channel
Consumer Distribution Channel Largest private label manufacturer, servicing more than 55 programs These relationships allow us to demonstrate our high product quality Private label programs open incremental sales opportunities for Fisher products Net Sales by Brand in Consumer Channel (FY2003)
Slide 14: Industrial Distribution Channel
Industrial Distribution Channel Focused on the 20 largest food manufacturers in the U.S. One-stop supplier status critical to these relationships Consolidation of major food manufacturers has provided opportunities Technical support for applications in development Net Sales by Segment in Industrial
Slide 15: Growth Strategies
Growth Strategies
Slide 16: Leverage Channel Opportunities
Leverage Channel Opportunities Expand retail distribution and alternative channels Combine strong private label with complementary Fisher brand programs Target produce departments and home improvement stores Become preferred supplier of nut ingredients to the top 20 food manufacturers - - Provide te
Slide 17: New Product and Packaging Customization
New Product and Packaging Customization Develop products and packaging to meet demand for value, convenience, innovation, and taste Support efforts to build awareness among consumers of the health benefits of nuts FDA qualified health claim Net carb statement Collaborate on R&D efforts with customer
Slide 18: Aggressively Grow the Fisher Brand
Aggressively Grow the Fisher Brand Strengthen the Fisher brand across channels Position Fisher as a strong, quality second brand to compete with Planters Devote marketing and advertising programs to increase brand recognition "Fisher, Chicago's Hometown Nut"TM campaign Pursue co-branding opportuniti
Slide 19: Invest in Operations
Invest in Operations Increase competitive advantage and support growth by pursuing proven strategy of investing in operations Expand and consolidate Chicago area facilities Increase packaging capacity and capability Expand shelling capacity Willingness to meet new customer needs through capex
Slide 20: Expansion & Consolidation Project
Expansion & Consolidation Project We expect groundbreaking in late 2004 with a total project cost of $75 to $85 million We expect this project initially to increase production capacity by 25% to 40%, with additional floor space to meet future capacity expansion We anticipate that this project allow
Slide 21: Financial Overview
Financial Overview
Slide 22: Historical Performance
Historical Performance Annual Financial Results (FY1999 - FY2003) Growth over the past five years has been entirely organic (in millions, except per share data) 1999 2000 2001 2002 2003 Net sales 313.0 $ 326.6 $ 342.4 $ 352.8 $ 419.7 $ Gross margin 14.3% 16.7% 17.3% 16.4% 17.3% EBITDA * 22.6 $ 29.9
Slide 23: FY2004 YTD Performance
FY2004 YTD Performance (in millions except per share data) March 27, 2003 March 25, 2004 Net sales 320.4 $ 396.3 $ Cost of sales 264.5 323.5 Gross profit 55.9 72.8 Gross margin 17.4% 18.4% Selling and administrative expenses 33.9 38.9 Income from operations 22.0 33.9 Interest expense (3.5) (2.8) Oth
Slide 24: Superior Operating Achievements
Superior Operating Achievements Over the last year, net sales increased 23.5% entirely through organic growth Due in part to better gross margins and operating leverage, net income increased 73.7% over the last year LTM Financial Performance (for the twelve month period ended) ($ in millions except
Slide 25: Investment Highlights
Investment Highlights Nuts are the fastest growing snack category Key advantages Pure play, vertically integrated, processing powerhouse Broad product portfolio Distribution channel diversity 82 years of operational expertise Superior financial results
Slide 26: John B. Sanfilippo & Son, Inc.
John B. Sanfilippo & Son, Inc. Nasdaq: JBSS
Sanfilippo John B & SON — Investor Presentation (August 2004) on 6ix