John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (October 2013)
82 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Oct 30, 2013
Slide 1: Annual Stockholder Meeting FY 2013 Review
October 30, 2013 Annual Stockholder Meeting FY 2013 Review Exhibit 99.1
Slide 2: Net Sales, EPS and Operating Cash Flow FY11-FY13
Net Sales FY 11- FY 13 740,000,000 730,000,000 720,000,000 710,000,000 700,000,000 690,000,000 {680,000,000 670,000,000 ‘660,000,000 650,000,000 {640,000,000 Fyat FY a2 Fva3. Earnings Per Share FY 11-FY 13 Operating Cash Flow FY 11 - FY 13 _— ; 4 35,000,000 i — oo : rem =u) $000,000 ww Sy a oe
Slide 3: Operating Cash Flow FY 11 - FY 13
40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 +5}000,000 Operating Cash Flow FY 11 - FY 13
Slide 4: Operating Cash Flow FY 11 - FY 13
40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 +5}000,000 Operating Cash Flow FY 11 - FY 13
Slide 5: Time to Celebrate Successful Results
Diluted EPS Improvement of over 600% Operating Cash flow increased by nearly 400% Net Sales increased by 9% to a record $734 million Time to Celebrate Successful Results over last two years $674,212 $700,575 $734,334
Slide 6: Creating Shareholder Value
Creating Shareholder Value JBSS Stock Price $13.94 10/24/2012 Stock Price $24.44 10/24/2013 Outperformed the S&P 500 by over 50%! S&P500
Slide 7: Mission
Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our shareholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of our
Slide 8: We are 1,290 people strong
We are 1,290 people strong! 150 Employees 760 Employees 45 Employees 125 Employees 210 Employees
Slide 9: Distribution Channel Diversification
$34 $178 $86 $436 Distribution Channel Diversification (Millions of $) Fiscal 2013 Net Sales $734 Million Commercial Ingredients 24% Contract Pkg. 12% Consumer 59% Export 5%
Slide 10: FY 2013 Consumer Channel
FY 2013 Consumer Channel FY 2013 Consumer Channel Consumer 59% vs. FY ‘12 Fiscal 2013 Net Sales $436 Million 4.2%
Slide 11: FY 2013 Commercial Ingredients Channel
FY 2013 Commercial Ingredients Channel FY 2013 Commercial Ingredients Channel vs. FY ‘12 .7% Commercial Ingredients 24% Fiscal 2013 Net Sales $178 Million
Slide 12: FY 2013 Export Channel
FY 2013 Export Channel FY 2013 Export Channel Fiscal 2013 Net Sales $34 Million Export 5% 1.4% Vs. FY ‘12 $
Slide 13: FY 2013 Contract Packaging Channel
Contract Packaging 2013 Contract Packaging Channel 2013 Contract Packaging Channel Vs. FY ‘12 12% $ 22.1 % Fiscal 2013 Net Sales $86 Million
Slide 14: Corporate Strategies
Corporate Strategies
Slide 15: Build Fisher and Orchard Valley Harvest into leading nut brands
oh Build Fisher and Orchard Valley Harvest into leading nut brands Utilize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category for our retail partners Focus on consumers demanding quality nuts in snacking, recipe
Slide 16: 2013 Accomplishments
FY 2013 Accomplishments • Fisher Brand delivered double-digit growth over FY ‘12 • Fisher Recipe Nuts expanded distribution and gained market share • Orchard Valley Harvest launched on- the-go packs and gained distribution at key retailers across the country
Slide 17: Goal: Build Fisher Recipe Nuts to #1
Goal: Build Fisher Recipe Nuts to #1 Market Share Position Nationally
Slide 18: How: Investing in Fisher Brand, Service & Production Flexibility
How: Investing in Fisher Brand, Service & Production Flexibility FISHER RECIPE NUT $ SALES SHIPPERS & QUARTER PALLET DISPLAYS $4,422,767 $1,042,790 $777,876
Slide 19: Goal: Build Fisher Snack Nuts to #2 in Midwest
Goal: Build Fisher Snack Nuts to #2 Market Share Position in Midwest
Slide 20: How: Investing in Fisher Snack Brand to Drive Growth
How: Investing in Fisher Snack Brand to Drive Growth! Fisher Snack Sports Sponsorships and New Products
Slide 21: Goal: Build Orchard Valley Harvest to Top Market Share Position
Dominick's Goal: Build Orchard Valley Harvest to Top 5 Market Share Position - Produce Sprouts
Slide 22: How: Provide Support to Drive Trial & Awareness
Coupons Website: www.orchardvalleyharvest.com Social Media Offer Tear Pads Educational Tear Pads In-Store Sampling In-Store Displays Corrugate Shippers Sturdy Display Racks How: Provide Support to Drive Trial & Awareness
Slide 23: FY 2013 Accomplishments
• Created a geographic-centric sales structure and hired experienced professionals to manage key regions • Partnered with leading international marketing firms to do proprietary research on nut usage and consumption in Asia • Invested in upgrading our Fisher Brand positioning and packaging FY 2013 A
Slide 24: Goal: Double International Sales by FY2016
Goal: Double International Sales by FY2016 A world of opportunity for JBSS to be a leader in health and wellness nut/fruit snacks in key international markets $34 MM $ 70 MM
Slide 25: How: Refresh & Upscale Fisher Brand Internationally
How: Refresh & Upscale Fisher Brand Internationally • Premium look conveys premium quality • Launched in China … expanding to all International markets Consumer response has been outstanding:
Slide 26: Who: China Retailers
Who: China Retailers Shanghai Fisher in Tibet Beijing
Slide 27: Who: Latin America Retailers
Who: Latin America Retailers • Mexico • Dominican Republic • Panama • Colombia Comercial Mexicana Chedraui - Mafer El Rey - Panama Walmart / Superama Fisher “World Table” El Dragon – Santo Domingo Liverpool - Mexico
Slide 28: Who: Europe, Middle East, Africa, Asia
Who: Europe, Middle East, Africa, Asia Retailers • Russia • U.A.E. • U.K. • Saudi Arabia • South Korea • Malaysia • Japan • Australia
Slide 29: FY 2013 Accomplishments
FY 2013 Accomplishments • Developed significant product launches with several key customers • Continued to expand our production capabilities and our focus on innovation and consumer insights • Received two major Supplier of the Year customer awards
Slide 30: Goal: Be The Preferred Partner to Build Profitable Volume
Goal: Be The Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Walmart Supplier of the Year Frito-Lay Supplier of the Year
Slide 31: How: Commitment to Quality, Food Safety, Innovation & Procurement
• Reduce Foreign Material Complaints • Customer Quality Scorecards • Stringent Corporate Food Safety Programs • Raw Material Sourcing • Product & Packaging Innovation How: Commitment to Quality, Food Safety, Innovation & Procurement Expertise Almonds, Walnuts, Pecans, Pistachios, Peanuts, Raisins, C
Slide 32: How: Operational Excellence
Quality Balance Flow 1 2 3 4 5 How: Operational Excellence Setup Reduction 5S Housekeeping Create Flow Visual Management Continuous Improvement Kanban Pull Systems Standard Work Bottlenecks Checkers checking the checkers Broken interfaces Unclear roles and responsibilities 5 things to look for… The
Slide 33: Leading Food Companies and Retailers
Leading Food Companies and Retailers
Slide 34: Vision
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 35: Financial Milestones
FY Financial Milestones
Slide 36: JBSS Stockholders' Equity FYs 1991-2013
JBSS Stockholders’ Equity FYs1991 2013 -
Slide 37: JBSS Net Sales FYs 1991-2013
JBSS Net Sales FYs 1991- Item Rationalization, De-emphasized Commodity Sales, Lower Prices Low Carb Diet Run Up
Slide 38: JBSS Total Outstanding Debt FYs 1991-2013
JBSS Total Outstanding Debt FYs 1991 - Facility consolidation Improved operating performance $140 $160 $100 $120 $60 $80 $20 $40 $0
Slide 39: JBSS Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – Note: FY 1997 reflects stub year 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0%
Slide 40: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $000's) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 NET INCOME (LOSS) 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 INTEREST EXPENSE 4,681 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6
Slide 41: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $25,000 $30,000 $20,000 $15,000 $10,000 $5,000 $0 -$5,000 -$10,000 -$15,000
Slide 42: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 43: EBITDA Per Pound Sold
EBITDA* Per Pound Sold * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 -$0.05 -$0.10
Slide 44: Market prices vs. JBSS Rolling 4 QTR Gross Margins
Market prices from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Rolling 4 QTR Gross Margins 0.0% 1.5% 3.0% 4.5% 6.0% 7.5% 9.0% 10.5% 12.0% 13.5% 15.0% 16.5% 18.0% 19.5% 21.0% 22.5% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 r
Slide 45: Highlights: Q1 2014 vs. Q1 2013
Highlights: Q1 2014 vs. Q1 2013 $ Chng. % Chng. Net Sales Sales Volume (lbs. sold ) Gross Profit Net Income Earnings Per Share (EPS) Total Debt ’ 7,004 ($ 810) ($ 1,204) ($ 759) ($ 0.08) ($16,920) (.5%) 14.0% (3.9%) (10.1%) (11.4%) (19.6%) (in 000 s except EPS)
Slide 46: Sales & Marketing Update
FY 2013 Sales & Marketing Update
Slide 47: Grow Brands: Recipe Nuts, Snack Nuts
Grow Brands Recipe Nuts Snack Nuts
Slide 48: Fisher
Fisher We bring the joy of nuts to life by staying fresh, every day and in every way.
Slide 49: Fisher Brand Delivering Double Digit Growth
Consumer Channel Pounds (Millions) Gross Revenue ($ Millions) Fisher Brand Delivering Double Digit Growth FY ’13 Actual Versus FY’12 FY ’13 Actual Versus FY’12 Fisher Brand +17% $138 +23%
Slide 50: Innovation that meets the needs of the Consumer
Easier to scoop Easier to find in the pantry Freshness seal keeps nuts fresh Innovation that meets the needs of the Consumer… Before….
Slide 51: ...and the Retailer
…and the Retailer Easier to Merchandise Reduced Case Count to reduce Inventory Shelf Ready Case to reduce Labor Before….
Slide 52: Celebrity Chef Alex Guarnaschelli in TV Vignettes and Print
Celebrity Chef Alex Guarnaschelli in TV Vignettes and Print Building the Fisher Brand with Food Network Sponsorship
Slide 53: Taking Food Network Relationship up a Notch in FY 2014
Taking Food Network Relationship up a Notch in FY 2014! Fisher Recipe Contest with Alex Guarnaschelli as the Final Judge! Extending Social Media Integration
Slide 54: Extend our reach through Print
We extend our reach through Print that reaches our Core Consumer
Slide 55: Winning In-Store with Displays
Get Free! Buy Winning In-Store with Displays! Karo Ti e - in leads to 7X increase in “Pounds on the Floor”
Slide 56: Strong Consumer and Retailer Program Driving Distribution Gains
Our Strong Consumer and Retailer Program is driving Distribution Gains… Recipe Nuts
Slide 57: Market Share Gains among Branded Recipe Nuts
…and Market Share Gains among Branded Recipe Nuts Source : Nielsen scantrack data 4 week periods 7/7/12 to 9/28/13 70% 60% 50% 40% 30% 20% 10% 0% June ‘12 July ‘12 Aug ‘12 Sept ‘12 Oct ‘12 Nov ‘12 Dec ‘12 Jan ‘13 Feb ‘13 March ‘13 April ‘13 May ‘13 June ‘13 July ‘13 Aug ‘13 Sept ‘13 Oct ‘13 Fisher R
Slide 58: Growing Fisher Snack by getting the Fundamentals Right
Growing Fisher Snack by getting the Fundamentals Right… New Products Coupon Support In-Store Merchandising
Slide 59: Driving Distribution Gains: Snack Nuts
…driving Distribution Gains Snack Nuts
Slide 60: Fisher Website & Mobile Site
Fisher Website & Mobile Site Pinterest Email Newsletter Facebook Twitter Party & Blogging Building relationships with consumers with overarching Fisher Brand Support
Slide 61: Great Results: Digital Vehicles 2013 FY vs. YAG
Vehicle 2013FY Vs. YAG Website Visitors +187% E-Mail Subscribers +29% Facebook Fans +63% Pinterest Followers 100% …and Getting Great Results!
Slide 62: Pure and Simple Goodness
Pure and Simple Goodness
Slide 63: Three Key Consumer Trends
Consumers want to know what’s in their food Consumers want products that fit their active lifestyle Consumers are more proactive about health & wellness Three Key Consumer Trends
Slide 64: Orchard Valley Harvest Delivers
• Fresh • Pure & Simple • From the Earth • Natural • Authentic Orchard Valley Harvest Delivers
Slide 65: Orchard Valley Harvest Delivers
Orchard Valley Harvest Delivers
Slide 66: A Differentiated Assortment
Core Line of “Take Home” Bags Health & Wellness Mixes Convenience Packs A Differentiated Assortment
Slide 67: Building Distribution
Building Distribution (Bulk only) BREAUX Markets
Slide 68: Building the Brand
Free Standing Inserts Website: www.orchardvalleyharvest.com Social Media Offer Tear Pads Educational Tear Pads In- Store Sampling In-Store Displays Corrugate Shippers Display Racks Building the Brand
Slide 69: Building Distribution
Building Distribution (Bulk only) BREAUX Markets Updated: 10.19.13
Slide 70: Closing Comments
70 Closing Comments
Slide 71: Build Fisher and Orchard Valley Harvest into leading nut brands
Bud Fisher and Orchard Valley Harvest into leading rut brands, Utlize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category for our retail partners. Focus on consumers demanding quality nuts in snacking, recipe and
Slide 72: Expand Globally: Chart of the Day
Chart of the Day World: 2013 GDP Growth Forecast Percent) EXPAND GLOBALLY * Build JBSS into a leading premium inerational ut company, * Grow Fisher and other JBSS brands though expanded ditriouton and consumer led brand buiding, Leverage selec value-added private brand partnerships * Focus on consum
Slide 73: Create Value with Key Customers
CREATE VALUE WITH KEY CUSTOMERS ** Be the preferred partner to build profitable volume of value-added nut and snack products, ‘Offer supply chain expertise, quality flexibly, innovation ® and customer support that creates value for our partners, * Focus on leading food companies in the Consumer, pra
Slide 74: Vision, Mission and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer. Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consis
Slide 75: From Humble Beginnings
647 W. Division Street Chicago, IL From Humble Beginning s ….
Slide 76: Celebrating Years of Leadership
Celebrating 50 Years of Leadership
Slide 77: Elk Grove Village Headquarters
Front Entrance off Busse Rd. Side Entrance off Devon Jasper Sanfilippo Matt Valentine Elk Grove Village Headquarters 1982 –
Slide 78: Same Location Today... End of an Era
Front Entrance Busse Rd. Side Entrance off Devon Same Location Today… End of an Era
Slide 79: We've come a long way thanks to you!
We’ve come a long way thanks to you!
Slide 80: International Nut Congress Golden Nut Award
International Nut Congress May rd , Golden Nut Award Jasper Sanfilippo Sr.
Slide 81: Chairman Emeritus Jasper B. Sanfilippo Sr.
Chairman Emeritus Jasper B. Sanfilippo Sr.
Slide 82: THANK YOU
THANK YOU
Sanfilippo John B & SON — Shareholder Meeting (October 2013) on 6ix