Mgp Ingredients, Inc. · NASDAQ:MGPI
Mgp Ingredients — Investor Presentation (November 2015)
22 slides from Mgp Ingredients's investor presentation, Nov 17, 2015
Slide 1: Investing for Growth in Premium Spirits and Specialty Food Ingredients
= INVESTING FOR GROWTH = IN PREMIUM SPIRITS = AND SPECIALTY FOOD INGREDIENTS NOVEMBER, 2015
Slide 2: Forward-looking statements
Certain of the comments made in this presentation and in the question and answer session that follows may contain forward-looking statements in relation to operations, financial condition and operating results of MGP Ingredients, Inc. and such statements involve a number of risks and uncertainties.
Slide 3: Company overview
• Founded in 1941 by Cloud L. Cray, Sr. • Headquartered in Atchison, Kansas • 300 employees • Leading supplier of premium bourbon, whiskey, distilled gin, and vodka • Largest U.S. supplier of rye whiskey • Largest U.S. supplier of distilled gin • Largest U.S. supplier of specialty wheat proteins and
Slide 4: Facilities and operations
LAWRENCEBURG, IN DISTILLERY • Distilling & Aging • Wide Range of Whiskeys • Standard & Custom Mash Bills • Gins • Grain Natural Spirits/Vodka • R&D Lab ATCHISON PROTEIN & STARCH • Specialty Wheat Proteins & Starches • Textured Proteins ATCHISON, KS DISTILLERY • High Quality, Efficient Production • G
Slide 5: Distilled spirits market data
WHISKEY (U.S.) • 18.5MM Cases • 5% 5 Year CAGR • MGP Estimated Share = 8% CRAFT • +700 Distilleries • 2014 Volume +58% GIN (U.S.) • 6.3MM Cases • (3)% 5 Year CAGR • MGP Estimated Share = 65% RYE WHISKEY (U.S.) • 500K Cases • 45% 5 Year CAGR • MGP Estimated Share = 70% Note: data based on internal co
Slide 6: Specialty ingredients market categories
HIGH PROTEIN • Category (N. Amer.) = $16B • 9% projected 5 year CAGR HIGH FIBER • Category (N. Amer.) = $1.3B • 13% projected 5 year CAGR MEAT SUBSTITUTES • Category (N. Amer.) = $0.6B • 4% projected 5 year CAGR NON-GMO • Category (N. Amer.) = $0.8B • 5% projected 5 year CAGR “MGP Ingredients, Atchi
Slide 7: Mission statement
Secure our future by consistently delivering superior financial results by more fully participating in all levels of the alcohol and food ingredients segments for the betterment of our shareholders, employees, partners, consumers, and communities.
Slide 8: Strategic plan
MGP nu R STRATEGIC PLAN Build MGP Brand Maximize Value Invest for Growth Risk Management 2 a a rm = q > o 3 2 a a ts)
Slide 9: Distillery products strategy
• Shifting sales mix to higher margin products • Investing to supply more premium bourbon and whiskey • Leveraging capabilities to extend product range of white goods • Supplying all tiers of the beverage alcohol market
Slide 10: Ingredient solutions strategy
“The growth in this [meat substitutes] market is propelled by continuous growth in the vegetarian food industry and the increasing health concerns of consumers.” SOURCE LINK “Whatever the science says, many consumers have made up their minds: no genetic tinkering with their food,”* SOURCE LINK • Shi
Slide 11: Metze's Select brand
• Metze’s Select - first MGP brand • Showcasing MGP’s range of expertise and strengthening our reputation with trade and consumers • Valuable opportunity to learn A very smooth and well-rounded dram, and a good reminder why all those "craft" brands are sourcing MGP whiskey to begin with for their ow
Slide 12: Investing in barrel warehouse and whiskey inventory
• Expanding barrel warehouse capacity - $16MM investment • Building our barreled whiskey inventory - Aged Whiskey = potential 3X value - Investment up $10MM vs. 2014 • Attracting and developing talent
Slide 13: Managing commodity costs
• Mix shift to higher value products will reduce overall impact of commodity prices • Disciplined approach to managing commodity costs - Formula-driven pricing - Locking in margins - Passing through significant swings in cost
Slide 14: Stakeholders
• Shareholders • Employees • Partners • Consumers • Communities
Slide 15: 2015 guidance
MGP 2015 GUIDANCE “ADJUSTED OPERATING INCOME GROW 4X IN 5 YEARS External Factors
Slide 16: MGP
MGP
Slide 17: Net sales year to date
Fav / (Unfav) vs Prior Year $MM $MM % Distillery Products $201.5 $7.5 3.9% Ingredient Solutions 44.6 1.5 3.5% Total $246.1 $9.0 3.8% NET SALES YEAR TO DATE 9/30/2015 • Both segments contributing to growth • Distillery products growth driven by food grade alcohol, +9.6% YTD • Ingredient solutions gro
Slide 18: Gross profit margins year to date
GROSS PROFIT MARGINS YEAR TO DATE 9/30/2015 • Net Sales shift to more profitable products • Effective price management during commodity declines • Improved plant efficiencies KEY DRIVERS 2014 9.5% 2015 17.4%
Slide 19: Income statement highlights
INCOME STATEMENT HIGHLIGHTS YEAR TO DATE 9/30/2015 Fav / (Unfav) vs. PY $MM $MM % Net Sales $246.1 $9.0 3.8% Gross Profit 42.8 20.3 90.8 Selling, general, and administrative 20.0 (4.8) (31.5) Insurance recoveries - (1.2) (100.0) Income from operations 22.8 14.3 169.9 Interest expense (0.4) 0.3 39.2
Slide 20: Stock performance vs indices
S&P 500 3% 8% 28% 40% Russel 2000 Consumer Staples Russel 3000 Beverage & Distillers MGPI
Slide 21: Summary
• Long-term strategy in place • Turnaround well underway • Mix and investment driving long-term growth • Well positioned against macro trends
Slide 22: MGP Ingredients contact details
MGP Ingredients, Inc.® Cray Business Plaza 100 Commercial Street P.O. Box 130 Atchison, Kansas 66002 800.255.0302 mgpingredients.com
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