Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Q2 2021 Earnings Presentation
45 slides from Fresh Del Monte Produce's earnings presentation, Aug 4, 2021
Slide 1: Innovating for a Better World Tomorrow
INNOVATING FOR A BETTER WORLD TOMORROW Fresh Del Monte Produce Inc. Investor Relations August 4, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance. These forward-looking statements are based on information currentl
Slide 3: Who We Are - Key Differentiators
FRESH DEL MONTE PRODUCE WHO WE ARE - Key Differentiators Diverse Portfolio Global player with a Purpose-driven growth: with demand for leading brand loved by ESG integration as a value-added produce consumers competitive advantage growing Positioned like no one Purposeful & Targeted else – verticall
Slide 4: How We Got There - Decades of Growth
FRESH DEL MONTE PRODUCE AT A GLANCE HOW WE GOT THERE - Decades of Growth 1996 2017 2013-14 Announced new joint ventures with Del Monte Pacific Limited Del Monte Fresh Produce acquired by current Acquired tomato agricultural in retail & refrigerated grocery management production land in Florida and 2
Slide 5: A Diversified Company Positioned for Long-Term Growth
A Diversified Company Positioned for Long-Term Growth…
Slide 6: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network We are one of the world’s leading vertically- integrated producers, distributors and 37,600 EMPLOYEES GLOBALLY marketers of fresh and fresh-cut fruit and vegetables as well as a leading producer and 90+ COUNTRIES FRESH
Slide 7: Worldwide Business – Unmatched Global Network
Worldwide Business – Unmatched Global FRESH DEL MONTE PRODUCE AT A GLANCE Network IN 2020 45% OF OUR FRESH PRODUCE WAS GROWN ON COMPANY- CONTROLLED FARMS 103k ACRES UNDER PRODUCTION 61k ACRES OWNED 42k ACRES LEASED OF OWNED ACRES SET 26% ASIDE TO PRESERVE BIODIVERSITY AND PROTECT WILDLIFE 7
Slide 8: Worldwide Business – Broad Portfolio of Products
Worldwide Business – FRESH DEL MONTE PRODUCE AT A GLANCE Broad Portfolio of Products IN 2020 U.S. & CANADA EUROPE CENTRAL AMERICA ASIA AFRICA Sales Sales & Sourcing Sourcing Sales Sales ▪ Fresh & fresh-cut fruit ▪ Fresh & Fresh-cut fruit and ▪ Bananas ▪ Fresh & fresh-cut fruit ▪ Fresh fruit and vege
Slide 9: Broad Portfolio of Products – Leading Market Positions
Broad Portfolio of Products – Leading FRESH DEL MONTE PRODUCE AT A GLANCE Market Positions Leading marketer of fresh A leading marketer of fresh-cut fruit Third largest marketer of bananas in pineapples in the U.S., and a in the U.S, Canada, Japan, South the U.S., and a leading marketer of leading m
Slide 10: One of the Most Widely Recognized Food Brands Worldwide
One of the Most Widely Recognized FRESH DEL MONTE PRODUCE AT A GLANCE Food Brands Worldwide Symbol Health of Quality Wellness and Better-for-you attributes Freshness Broad Appeal Global opportunity to expand to new products and markets 10
Slide 11: Innovating Where We Have Advantage
Market Leader & Pioneer FRESH DEL MONTE PRODUCE AT A GLANCE in the Fresh Produce Industry Innovating Where We Have Advantage. We were the… ✓ FIRST to complete a national U.S. distribution network ✓ FIRST to launch a national fresh-cut fruit network ✓ FIRST to introduce premium gold pineapple ✓ FIRST
Slide 12: Diversified Sales & Product Platform
Diversified Sales & Product Platform FRESH DEL MONTE PRODUCE AT A GLANCE 2020 NET SALES: $4.2 BILLION Other Products & Services 3% Tomatoes 1% Vegetables 4% Middle East, Prepared 10% Melons, 2% Food, 6% Europe, Avocados, 8% Other Fruit & 16% Vegetables, 2% Non-Tropical Fruit, 5% BY BY Other, 1% REGI
Slide 13: Experienced and Results Oriented Management
Experienced and Results Oriented FRESH DEL MONTE PRODUCE AT A GLANCE Management Years at Name Title FDP Mohammad Abu-Ghazaleh Chairman and CEO 25 Youssef Zakharia President and COO 21 Eduardo Bezerra Senior Vice President and CFO 2 Marlene Gordon Senior Vice President – General Counsel, Chief Admini
Slide 14: Our Vision
Our Vision Inspiring healthy lifestyles through wholesome and convenient products 14
Slide 15: Our Values
Our Values EXCELLENCE: CARE: We provide high quality level in all our products We relentlessly respect and focus on our and services to fully achieve business results. employees, consumers, customers, environment and communities. PASSION: We have a passion to consistently deliver the TRUST: best qua
Slide 16: Sustainable Growth Strategy
Sustainable Growth Strategy
Slide 17: Unlocking the Value
Unlocking the Value STRATEGIC IMPERATIVES We have embarked on a 5-year plan to transform Fresh Del Monte Produce THE KEY ELEMENTS OF OUR TRANSFORMATION INVOLVE: Protect and grow the core Drive innovation and expansion growth on value-added categories Become a technology driven company Become a consu
Slide 18: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, Fundamentals and Returns UNLOCKING THE VALUE Drive innovation and Protect and grow expansion growth on value- the core added categories 18
Slide 19: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns ✓ Leading supplier of fresh and value-added vegetable category ✓ Best known for innovation ✓ Foodservice and retail customers in North America ✓ Purchase price of $361 million in 2018 A DEL MONTE FRESH COMPANY ✓ Voluntary reca
Slide 20: Focus on Leadership Area - Quality and Safety
Focus on Leadership Area - UNLOCKING THE VALUE Quality and Safety To demonstrate compliance with international regulations and standards on environmental protection, food safety and social accountability, our farms and our facilities are certified by one or more of the following standards: ▪ Global
Slide 21: The Del Monte Brand
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns The Del Monte® Brand Food and Beverage Stores 21
Slide 22: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Become a technology driven company Become a consumer driven company 22
Slide 23: Focus on Strong - Execution, Fundamentals and Returns
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns Evolve our culture to increase employee engagement and productivity 23
Slide 24: Diversity and Inclusion
Focus on Strong - Execution, UNLOCKING THE VALUE Fundamentals and Returns We strive to foster a culture of diversity and inclusion (“D&I”) so all employees feel respected and no employee feels discriminated against. We are proud of our diversity across our organization and especially our leadership
Slide 25: Sustainability: For a Brighter World Tomorrow
Sustainability: For a Brighter World Tomorrow UNLOCKING THE VALUE 25
Slide 26: Sustainability: For a Brighter World Tomorrow - 2025 Commitments
Sustainability: For a Brighter World Tomorrow Our 2025 Commitments 35% 120% 864,167 Trees Planted Since 2016 350+ Local Sustainability Programs We commit to planting and/or donating We commit to supporting 300 local sustainability programs 2,500,000 trees by 2025 that create measurable and lasting c
Slide 27: Sustainability: For a Brighter World Tomorrow
Sustainability: For a Brighter World Tomorrow
Slide 28: Sustainability: For a Brighter World Tomorrow
Sustainability: For a Brighter World Tomorrow UNLOCKING THE VALUE 28
Slide 29: Financial Review
Financial Review
Slide 30: Summary Data
Summary Data FINANCIAL PERFORMANCE U.S. dollars in millions, except share and per-share data *Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. **Attributable to Fresh Del Monte Produce Inc. 30
Slide 31: Fresh and Value-Added Products
Fresh and Value-Added Products FINANCIAL PERFORMANCE Fresh & value-added products includes pineapples, melons, tomatoes, non-tropical fruit, avocados, fresh-cut fruit & vegetables, vegetables, prepared fruit & vegetables, juices, other beverages, prepared meals, snacks & other fruit & vegetables. U.
Slide 32: Bananas
Bananas FINANCIAL PERFORMANCE U.S. dollars in millions * Excludes one-time charges The primary drivers of the Q2 2021 variance in net sales were: • Principally due to lower net sales in the Middle East, and to a lesser extent in North America, partially offset by higher net sales in Europe and Asia.
Slide 33: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share FINANCIAL PERFORMANCE $4.74 $2.43 $1.15 $0.98 $1.12 $0.40 $0.54 2016 2017 2018 2019 2020 Q2 2020 Q2 2021 Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 33
Slide 34: Adjusted EBITDA
Adjusted EBITDA FINANCIAL PERFORMANCE $340 $233 $209 $182 $161 $84 $64 2016 2017 2018 2019 2020 Q2 2020 Q2 2021 U.S. dollars in millions Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. 34
Slide 35: Operating Cash Flow
Operating Cash Flow FINANCIAL PERFORMANCE $332 $247 $194 $181 $169 $140 $111 2016 2017 2018 2019 2020 Q2 2020 Q2 2021 U.S. dollars in millions 35
Slide 36: Capital Allocation
Capital Allocation FINANCIAL PERFORMANCE Operating Cash Flow Capital Expenditures Debt $247 $151 $150 $662 $122 $587 $542 $169 $181 2018 2019 2020 2018 2019 2020 2018 2019 2020 Total Debt to Adjusted EBITDA 2018 2019 2020 4.1X 2.8X 3.0X Asset Sale Dividend Policy Total Debt as of Q2 2021 Optimizatio
Slide 37: Fresh Del Monte Produce Investment Highlights
Fresh Del Monte Produce Investment Highlights $100 million Asset Sale Optimization Program Clear Growth DEL MONTE Strategy Brand Vertically- Integrated Market Leader and Global in Diverse Operations Produce Categories Distribution and Fresh-Cut Centers (Value-Added Focus) 37
Slide 38: Appendix
Del Monte Quality Appendix
Slide 39: Income Statement
Income Statement APPENDIX U.S. dollars in millions, except share and per-share data *Excludes asset impairment, restructuring charges & gain/(loss) on the sale of assets. **Attributable to Fresh Del Monte Produce Inc. 39
Slide 40: Non-GAAP Measures
Non-GAAP Measures APPENDIX The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring, asset impairment and other char
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation APPENDIX U.S. dollars in millions, except share and per-share data 41
Slide 42: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA APPENDIX U.S. dollars in millions 42
Slide 43: Appendix
APPENDIX (1) Other product-related charges for the quarter ended July 2, 2021 primarily included (1) a $1.3 million inventory write-off incurred in connection with the contracted sale of production equipment in the Middle East, which will be recognized in a future quarter (2) $0.4 million in additio
Slide 44: Balance Sheet
Balance Sheet APPENDIX U.S. dollars in millions 44
Slide 45: Cash Flow
Cash Flow APPENDIX U.S. dollars in millions 45
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