The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Investor Day (December 2022)
174 slides from The J.m. Smucker's investor day presentation, Dec 14, 2022
Slide 1: Investor Day 2022
INVESTOR DAY 2022
Slide 2: Mark Smucker
MARK SMUCKER Chair of the Board, President and Chief Executive Officer
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, perf
Slide 4: Agenda
WELCOME! Company & Strategy Mark Smucker AGENDA ESG Priorities Jill Penrose & Jeannette Knudsen Our Brand Growth Flywheel Geoff Tanner BREAK Executing Our Strategy John Brase Panel Discussion U.S. Retail General Managers Transformation Office Amy Held BREAK Financial Priorities & Growth Tucker Marsh
Slide 5: Our Company & Strategy
OUR COMPANY & STRATEGY
Slide 6: Our Vision Guides Our Strategy
Our Vision GUIDES OUR STRATEGY Engage, delight and inspire consumers by building brands they love and leading in growing categories 6 6
Slide 7: Headquartered in Orrville, Ohio
HEADQUARTERED IN Orrville OHIO $8 BILLION FY22 NET SALES Powered by the Dedication to Our Values
Slide 8: Growth Through Acquisitions
GROWTH THROUGH ACQUISITIONS Introduced Iconic Delivered Above Made2 Bold Brands to Average Total Acquisitions Our Portfolio Shareholder Return Delivered Synergies and Growth Operated with Excellence as the Leader in Our Categories Looking Confident we are well-positioned Ahead for long-term growth 8
Slide 9: Strategy Considerations
STRATEGY CONSIDERATIONS Assess Position to Examine Where Performance & Win Over the We Compete Execution Long-Term Exit Leverage Improve Non-Strategic Strengths Profitability Businesses 9
Slide 10: Delivering Our Strategy
DELIVERING OUR STRATEGY Executional Priorities DRIVE STREAMLINE RESHAPE OUR UNLEASH OUR COMMERCIAL OUR COST PORTFOLIO ORGANIZATION EXCELLENCE INFRASTRUCTURE TO 10
Slide 11: Improved Commercial Capabilities
IMPROVED COMMERCIAL CAPABILITIES CONSUMER ENGAGEMENT COMMERCIAL DELIVERY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ TRANSFORMED CREATED TWO DISTINCT ADVERTISING CREATIVE SALES ORGANIZATIONS INCREASED IMPROVED CONSUMER REACH IN-STORE EXECUTION REDUCED NON-WO
Slide 12: Over 70% of Our Portfolio Growing or Maintaining Share
OVER 70% OF OUR PORTFOLIO GROWING OR MAINTAINING SHARE SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 13 WEEKS ENDED OCTOBER 30, 2022. 12
Slide 13: Streamlined Cost Infrastructure
STREAMLINED COST INFRASTRUCTURE Continuous Focus on Value Operational Improvement Creation Efficiency Optimize Supply Consolidation of Chain Production Sites 13
Slide 14: Reshaping Our Portfolio
RESHAPING OUR PORTFOLIO Commitment to divesting brands and businesses that are no longer consistent with our long-term strategic focus WE OPTIMIZED OUR ASSORTMENT TO: Reduce Maximize Prioritize Complexity Productivity Resources 14
Slide 15: Unleash Our Organization
UNLEASH OUR ORGANIZATION TO WIN Evolved to be Delivering with A Leaner & More Agile Excellence Flatter Structure Realigned Changes in Key Exceptional Incentives Leadership Roles Expertise 15
Slide 16: Our Most Valuable Asset Is Our People
OUR MOST VALUABLE ASSET IS OUR PEOPLE Recruit and Nurture and Commitment to Foster Retain the Invest in Our Improving Inclusion and Best Talent Culture Diversity Equity 16
Slide 17: Our Strategy: The Roadmap to Our Vision
OUR STRATEGY THE ROADMAP TO OUR VISION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Drive Prioritization Improve Transform Nurture & Improve Diversity & Best-In-Class Profitability & Our Portfolio Invest In and Foster Inclusion Execution Cost Discipline O
Slide 18: Positioned for Growth
POSITIONED FOR GROWTH Strength of Our Portfolio of Commercial Supply Chain Our Company’s Categories Leading Brands Capabilities Management Purpose 18
Slide 19: Our Categories
PET FOODS PET FOODS AND&SNACKS PET SNACKS COFFEE Our CATEGORIES CONSUMER FOODS 19 19
Slide 20: Pet Foods & Pet Snacks
PET FOODS & PET SNACKS Dog & cat ownership have both increased +10% Category growth projected to be +4-6% annually Pet parents increasingly prioritize pets over themselves SOURCE: EUROMONITOR NOVEMBER, 2022. 20
Slide 21: Future Growth in Pet Category
FUTURE GROWTH IN PET CATEGORY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Special bonds between pets and pet parents driving treating and premiumization Our portfolio offers consumers choices across premium, mainstream and value products Pet category is
Slide 22: Coffee
COFFEE U.S. coffee consumption is at a two-decade high Two-thirds of Americans over the age of 18 drink coffee SOURCE: : NCA 2022 REPORT NATIONAL COFFEE DATA TRENDS 22
Slide 23: Drinking Occasions
DRINKING OCCASIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 17 million new at-home brewers were purchased over the last three years 70% of all coffee drinking occasions occur at-home At-home consumption and new coffee formats are at the center of evol
Slide 24: Coffee Trends
COFFEE TRENDS FIRST WAVE SECOND & THIRD WAVES FOURTH WAVE COFFEE Coffee became The rise of Home-sourced generally accessible coffee shops and specialty drinks & social with brands like Folgers ® craft coffee media influence 24
Slide 25: Consumer Foods
CONSUMER FOODS Half of all food and beverage occasions are snacking Snacking is now a $150 billion market and projected to grow SOURCE: THE HARTMAN GROUP AND SMUCKER INTERNAL MULTI-OUTLET + CONVENIENCE SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 25
Slide 26: Frozen Snacking & Sandwiches
FROZEN SNACKING & SANDWICHES ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Expected to reach $9 billion in sales by 2026, reflecting growth of approximately 20% Broad reach across multiple eating occasions, offering variety, versatility and convenience Con
Slide 27: Our Portfolio of Leading Brands
PET PET FOODS & PET FOODS ANDSNACKS SNACKS Our Portfolio of Leading BRANDS Over 80% of U.S. COFFEE Households Buy Our Brands 80% of U.S. Retail Sales CONSUMER FOODS from categories where we hold the #1 or #2 branded position 27 SOURCE: SMUCKER INTERNAL IRI PANEL DATA AND MULTI-OUTLET SHARE REPORT 52
Slide 28: Trusted & Iconic Brands
TRUSTED & ICONIC BRANDS Stronger BRAND BUILDING ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ through our commercial capabilities 28
Slide 29: An Integrated Framework
AN INTEGRATED FRAMEWORK ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Our Brand Growth Flywheel Powered by Drives A Proven Insights Growth Model 29
Slide 30: Growing Our Brands
GROWING OUR BRANDS Iconic and emerging brands grew net sales by double-digit percentages last fiscal year 30
Slide 31: Supply Chain Management
SUPPLY CHAIN MANAGEMENT Maintained SUPPLY CHAIN & Size and scale is a New efforts to AVAILABILITY ON MANUFACTURING COMPETITIVE support MARGIN SHELF excellence ADVANTAGE EXPANSION 31
Slide 32: Responsible Sourcing
RESPONSIBLE SOURCING Our Coffee Sustainability Strategy Supporting smallholder coffee farmers Healthy expansion of supply chain Training on improved agricultural methods Help increase yields, quality, climate resistance, and farmer livelihoods 32
Slide 33: Our Purpose
OUR PEOPLE OUR PURPOSE Feeding connections that help us thrive – life tastes better together. ENSURING ACCESS TO SUPPORTING ACCESS PROMOTING MAKING SUPPORTING A QUALITY FOOD TO EDUCATION EQUITABLE AND CONNECTIONS TO HEALTHIER PLANET ETHICAL TREATMENT COMMUNITY FOR ALL RESOURCES 33
Slide 34: Confidence in Delivering Results & Future Growth
CONFIDENCE IN DELIVERING RESULTS & FUTURE GROWTH KEY CONTINUE 2 2 GROWTH PLATFORMS TRANSFORMATION JOURNEY Uncrustables ® Restore Margins Pet Snacks & Cat Food Fund Investments For Growth Coffee Portfolio & Format Expansion 34
Slide 35: We Have Become a Stronger Company
W E H AV E B E C O M E A STRONGER COMPANY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Continue to deliver on our commitment to achieve long-term growth 35 35 CONFIDENTIAL
Slide 36: Investor Day 2022
INVESTOR DAY 2022
Slide 37: ESG | Social Activities
ESG | Social Activities JILL PENROSE Chief People & Administrative Officer
Slide 38: ESG at Smucker
ESG at Smucker ENVIRONMENTAL Climate Impact & GHG Reduction Waste Management Land Use & Water Stewardship Packaging & Recycling Energy Efficiency Biodiversity and Ecological Impacts rd 4 THE J.M. SMUCKER Co ESG Framework and Key Topics
Slide 39: Inspired by Our Purpose
INSPIRED BY OUR PURPOSE Feeding connections that help us thrive — life tastes better together. GUIDED BY OUR THRIVING TOGETHER AGENDA jd ¢&¢ F th @® Ensuring Access Supporting Access Making Connections to Promoting Equitable and Supporting a to Quality Food to Education Community Resources Ethical T
Slide 40: Our Positive Social Impact
OUR POSITIVE SOCIAL IMPACT INCLUSION, COMMUNITY EMPLOYEE DIVERSITY & SUPPORT ENGAGEMENT EQUITY 40
Slide 41: Inclusion, Diversity & Equity
INCLUSION, DIVERSITY & EQUITY
Slide 42: ID&E at Smucker
ID&E AT SMUCKER 42
Slide 43: Advancing ID&E at Smucker
ADVANCING ID&E AT SMUCKER ADVOCATE ALLIANCE EMPLOYEE RESOURCE GROUPS ID&E PROGRAMMING A Network of Employees Education Materials, who Champion ID&E Discussion Panels, Cultural Awareness Content 43
Slide 44: ID&E Aspirations
ID&E ASPIRATIONS ENHANCING STRENGTHENING WORKPLACE OUR CURRENT DIVERSITY ORGANIZATION • Double the representation of • Advocate Alliance People of Color • Employee Resource Groups • Meaningfully improve representation of women in • 50% of total salaried senior level roles workforce and 40% percent o
Slide 45: Fostering a Diverse & Inclusive Workforce
FOSTERING A DIVERSE & INCLUSIVE WORKFORCE Seeking out diversity of thought & integrated thinking Better serves our employees and consumers Allows us to better Our diverse and inclusive workforce understand the broader is a COMPETITIVE world and community ADVANTAGE 45
Slide 46: Community Support
COMMUNITY SUPPORT
Slide 47: Supporting Our Communities
SUPPORTING OUR COMMUNITIES Renewed $500,000 Continued Support of Regularly Identify New Donation to Long-Time 2 Partners Opportunities to Underrepresented Support Groups 47
Slide 48: Employee Engagement
EMPLOYEE ENGAGEMENT
Slide 49: Our Focus on Our People
OUR FOCUS ON OUR PEOPLE 49
Slide 50: Operations Support
OPERATIONS SUPPORT Acted with Adapted Incentives to Agility and Recruiting & Attract & Flexibility Hiring Tactics Retain Talent Shifted Maintained Reallocated Resources to an Focus on Resources for HR Surge Team Manufacturing Continuity 50
Slide 51: Proven Results
PROVEN RESULTS All Production Returned to Our Operations Sites Remained Target Staffing Operational Levels Teams Continue to Serve the Needs of Candidate Pools are Improving in Our Consumers Even our Most Challenged Sites 51
Slide 52: Our Evolving Corporate Workforce
OUR EVOLVING CORPORATE WORKFORCE Introduced a New and Flexible Hybrid Workplace Model 52
Slide 53: Thank You to Our Employees
THANK YOU TO OUREMPLOYEES
Slide 54: Investor Day 2022
INVESTOR DAY 2022
Slide 55: ESG | Environmental & Governance
ESG | Environmental & Governance JEANNETTE KNUDSEN Chief Legal Officer and Secretary
Slide 56: ESG Evolution at Smucker
ESG EVOLUTION AT SMUCKER ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 2 CORPORATE ENVIRONMENTAL GOVERNANCE ACTIVITIES • Enhanced Board Succession Process • Dedicated Organizational Structure • Increased Board of Director Diversity • Integrated Sustainability Practices • Shareholder-Friendly Governance •
Slide 57: Corporate Governance
CORPORATE GOVERNANCE 57
Slide 58: Board of Directors Succession Planning & Committee Rotations
BOARD OF SUCCESSION DIRECTORS PLANNING & • Focused on meeting shareholder expectations COMMITTEE • Consider skills of individual ROTATIONS Directors • Overall Board expertise designed to meet strategic objectives 58
Slide 59: Board Diversity
BOARD DIVERSITY STRIVE TO CREATE DIVERSITY IN MANY WAYS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Wide Range of Different Added 5 Directors Balanced Tenure Diverse Committee Experiences Perspectives Since 2017 of Directors Chair Leaders 59
Slide 60: Our Board of Directors
OUR BOARD OF DIRECTORS SUSAN CHAPMAN-HUGHES PAUL DOLAN JAY HENDERSON JONATHAN JOHNSON III Executive Compensation Committee Chair Chairman and Chief Executive Officer Retired Vice Chairman, Client Service Chief Executive Officer Former EVP, Global Head of Digital Capabilities, Cleveland Guardians Pri
Slide 61: Evolved Governance Practices
EVOLVED GOVERNANCE PRACTICES Implemented Eliminated Proxy Access Poison Pill Removed Annual Director Tenured Voting Elections 61
Slide 62: Ethics & Compliance
ETHICS & COMPLIANCE • Continue to improve and evolve our practices • Ensure legal compliance and equitable support of our employees 62
Slide 63: Environmental Activities
ENVIRONMENTAL ACTIVITIES
Slide 64: ESG Governance Council
ESG GOVERNANCE COUNCIL EXECUTIVE SPONSORSHIP HUMAN LEGAL RESOURCES SUSTAINABILITY MARKETING & CONSUMER EXP INVESTOR FINANCE RELATIONS REPORTING ROLE COMMUNICATIONS COMPLIANCE PROCUREMENT 64
Slide 65: Prioritizing Our ESG Efforts
PRIORITIZING OUR ESG EFFORTS ESG ISSUES CRITICAL SIGNIFICANT IMPORTANT ASSESSMENT • Food Safety & Quality • Risk & Crisis Management • Farmer Livelihoods • Inclusion, Diversity & Equity • Community Involvement • Health & Nutrition • Corporate Governance & Ethics • Food Access • Sustainable Agricultu
Slide 66: Supply Chain Sustainability
SUPPLY CHAIN SUSTAINABILITY Communicating Ensure Humane Expanding our Global Expectations for Treatment of Animals Responsible Sourcing Responsible Practices in our Supply Chain Program ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Proud of our continued o
Slide 67: World Coffee Research
WORLD COFFEE RESEARCH Smucker is a founding member Leveraging science to support supply chain sustainability Launched a global network to address environmental concerns 67
Slide 68: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP OUR FOCUS Renewable Energy Energy Efficiency Water Landfill Efficiency Avoidance 68
Slide 69: jmsmucker.com/our-impact
jmsmucker.com/our-impact 69
Slide 70: Our Sustainability Team
OUR SUSTAINABILITY TEAM Sensitivity Panels & Input Sessions 70
Slide 71: Visit Our Corporate Website
For more details VISIT OUR CORPORATE WEBSITE jmsmucker.com/our-impact 71
Slide 72: ESG at Smucker
ESG at Smucker ENVIRONMENTAL Climate Impact & GHG Reduction Waste Management Land Use & Water Stewardship Packaging & Recycling Energy Efficiency Biodiversity and Ecological Impacts rd 4 THE J.M. SMUCKER Co ESG Framework and Key Topics
Slide 73: Investor Day 2022
INVESTOR DAY 2022
Slide 74: Brand Growth Flywheel
Brand Growth Flywheel GEOFF TANNER Chief Commercial & Marketing Officer
Slide 75: Value Creation
VALUE CREATION STRONG PORTFOLIO OF BRANDS #1,2,3 POSITIONS COFFEE PET NEW COMMERCIAL MODEL FROZEN SNACKS 75
Slide 76: New End-to-End Commercial Model
NEW END-TO-END COMMERCIAL MODEL CONSISTENT MARKETING CREATIVITY REPEATABLE + ANALYTICS MODERNIZED SALES AGILITY 76
Slide 77: Brand Growth Flywheel
BRAND GROWTH FLYWHEEL CULTURALLY RELEVANT MARKETING FUNDAMENTAL INTELLIGENT SALES MEDIA EXECUTION BRAND GROWTH FLYWHEEL STRATEGIC INNOVATION CUSTOMER & DESIGN PARTNERSHIPS REVENUE OPTIMIZATION 77
Slide 78: Culturally Relevant Marketing
CULTURALLY RELEVANT MARKETING BRAND GROWTH FLYWHEEL 78
Slide 79: Intelligent Media
INTELLIGENT MEDIA BRAND GROWTH FLYWHEEL INCREASING REACH THROUGH DIGITAL 84% CURRENT MIX 82% REACH 70% 80% D I G I TA L SPEND ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 30% LINEAR FY21 FY22 FY23 TV ONLINE VIDEO DISPLAY SOCIAL AUDIO 79
Slide 80: Innovation & Design
INNOVATION & DESIGN BRAND GROWTH FLYWHEEL PLATFORM INNOVATION LINE EXTENSIONS VALUE ENGINEERING SEASONAL & LIMITED EDITION INNOVATION PACKAGING DESIGN 80
Slide 81: Revenue Optimization
REVENUE OPTIMIZATION BRAND GROWTH FLYWHEEL PRICING OPTIMIZING MULTI-YEAR ACTIONS TRADE REVENUE GROWTH SPEND PLANS RECOVERY OF ANALYZE INITIATIVES TO UNPRECEDENTED 6,000 IMPROVE COST INCREASES PROMOTIONAL EVENTS ANNUALLY PROFITABILITY 81
Slide 82: Strategic Customer Partnerships
STRATEGIC CUSTOMER PARTNERSHIPS BRAND GROWTH FLYWHEEL JOINT CUSTOMER CATEGORY 11 NEW CATEGORY BUSINESS PLANNING LEADERSHIP ADVISERSHIPS COFFEE PET SNACKS CAT FOOD FROZEN SNACKS 82
Slide 83: Fundamental Sales Execution
FUNDAMENTAL SALES EXECUTION BRAND GROWTH FLYWHEEL BEFORE AFTER PERFECT STORE RETAIL EXECUTION MODEL 83
Slide 84: Brand Growth Flywheel
BRAND GROWTH FLYWHEEL BRAND GROWTH FLYWHEEL 84
Slide 85: Meow Mix
MEOW MIX ® INCREASED DISTRIBUTION R E S U LT S BY10% & SHARE CULTURALLY OF SHELF BY 17% RELEVANT MARKETING +36% GROWTH FUNDAMENTAL INTELLIGENT SINCE 2019 SALES EXECUTION MEDIA ∙∙∙∙∙∙∙∙∙∙∙∙ BRAND #1 GROWTH MARKET SHARE FLYWHEEL IN DRY CAT ∙∙∙∙∙∙∙∙∙∙∙∙ STRATEGIC INNOVATION CUSTOMER #1 & DESIGN PARTNER
Slide 86: Milk-Bone
MILK-BONE ® 9% INCREASE IN DISTRIBUTION 21% INCREASE IN CULTURALLY RELEVANT MARKETING MERCHANDISING SINCE 2019 R E S U LT S FUNDAMENTAL SALES INTELLIGENT EXECUTION MEDIA +27% BRAND IN RETAIL GROWTH CONSUMPTION FLYWHEEL SINCE 2019 ∙∙∙∙∙∙∙∙∙∙∙∙ #1 STRATEGIC CUSTOMER PARTNERSHIPS INNOVATION & DESIGN PE
Slide 87: Folgers
FOLGERS ® K-CUP® PODS DISTRIBUTION INCREASE OF 16% CULTURALLY RELEVANT MARKETING R E S U LT S FUNDAMENTAL SALES INTELLIGENT EXECUTION MEDIA MARKET SHARE GROWTH BRAND ∙∙∙∙∙∙∙∙∙∙∙∙ GROWTH GAINING FLYWHEEL RELEVANCE WITH GEN X AND STRATEGIC INNOVATION MILLENNIALS CUSTOMER PARTNERSHIPS & DESIGN REVENUE
Slide 88: Jif
JIF ® CULTURALLY RELEVANT MARKETING R E S U LT S 7.5 FUNDAMENTAL INTELLIGENT SALES MEDIA #1 EXECUTION BILLION PEANUT BUTTER BRAND VIEWS GROWTH ∙∙∙∙∙∙∙∙∙∙∙∙ FLYWHEEL Top 10 Campaigns #1 STRATEGIC of 2022 INNOVATION HOUSEHOLD CUSTOMER PARTNERSHIPS & DESIGN PENETRATION REVENUE OPTIMIZATION SOURCE: IRI
Slide 89: Propelling Our Growth
PROPELLING OUR GROWTH BRAND GROWTH FLYWHEEL 10 11 71% RECOGNIZED BY Fast FastCompany Company Magazine OUT OF Magazine QUARTERS OF OF PORTFOLIO AS ONE OF THE MOST COMPARABLE IS GROWING OR INNOVATIVE COMPANIES NET SALES GROWTH MAINTAINING SHARE IN THE WORLD Executing all six elements in a ∙∙∙∙∙∙∙∙∙∙∙∙
Slide 90: Never Satisfied
NEVER SATISFIED CONSTRUCTIVE DISSATISFACTION TALENTED TEAM
Slide 91: Investor Day 2022
INVESTOR DAY 2022
Slide 92: Executing Our Strategy
Executing Our Strategy JOHN BRASE Chief Operating Officer
Slide 93: Our Strategy Makes Us Stronger
OUR STRATEGY MAKES US STRONGER Execution & Leveraging Investments our Scale Delivering for our Strong Financial Customers Results 93
Slide 94: Focusing on the Future
FOCUSING ON THE FUTURE PET FOODS CONSUMER 2 COFFEE & PET SNACKS FOODS Our Brands & Categories ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Provide an ADVANTAGED POSITION Among Packaged Food Companies 94
Slide 95: U.S. Retail Pet Foods
U.S. RETAIL PET FOODS OTHER BUSINESSES DIVESTED 2% $2.8B FY22 NET SALES DOG FOOD SNACKS 31% 33% CAT FOOD 32% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 95
Slide 96: The Strategic Importance of Dog Snacks
THE STRATEGIC IMPORTANCE OF DOG SNACKS MARGIN ACCRETIVE WITH STRONG PROJECTED FUTURE GROWTH MARKET LEADER WITH 23% DOLLAR SHARE AND NEARLY 60% HOUSEHOLD PENETRATION YOY NET SALES GROWTH IN 16 OF LAST 18 QUARTERS EXPECT DOG SNACKS TO GROW TO $1B IN NET SALES IN THE NEXT 2 YEARS SOURCE: SMUCKER INTERN
Slide 97: Growth in Pet Snacks
GROWTH IN PET SNACKS EXPAND LEADERSHIP IN CONTINUE BUILDING A BISCUITS AND SOFT & MEANINGFUL PRESENCE IN CHEWY SEGMENTS LONG-LASTING CHEWS Breakthrough Expanding Evolving & Igniting Marketing & Seasons & Optimizing Premium Engagement Occasions Assortment Innovation 97
Slide 98: Leading Our Pet Snacks Growth
LEADING OUR PET SNACKS GROW TH 98
Slide 99: Strong Milk-Bone Momentum
STRONG MILK-BONE MOMENTUM ® GREW OVER 2X THE CATEGORY RATE LAST YEAR #1 #1 #1 DOLLAR DRIVING NEW BRAND SHARE HOUSEHOLDS AWARENESS SOURCE: SMUCKER INTERNAL IRI PANEL DATA: NLR BUYER FLOW AND MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022., AND BRAND GPS REPORT 52 WEEKS ENDED DECEMBER 01,
Slide 100: Focusing on New Pet Parents
FOCUSING ON NEW PET PARENTS 21% 85% of new dog treat of younger consumers buyers were brought see themselves as a in by Milk-Bone over ® “parent” to their dog the last year SOURCE: SMUCKER INTERNAL IRI PANEL DATA: NLR BUYER FLOW 52 WEEKS ENDED NOVEMBER 06, 2022. KANTAR PET PARENT SEGMENTATION REPORT
Slide 101: Growth in Special Occasions
GROWTH IN SPECIAL OCCASIONS of pet parents believe it is 86% important to involve their dog in holidays or special occasions SOURCE: KANTAR PET PARENT SEGMENTATION REPORT DATED FEBRUARY 2021. 101
Slide 102: Cat Food Momentum
CAT FOOD MOMENTUM Net Sales growth last 19 of 20 quarters Meow Mix outpaced the category average ® Leverage momentum in dry cat food to drive growth in wet food SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 102
Slide 103: Maintain Dry Food Leadership
MAINTAIN DRY FOOD LEADERSHIP #1 BRAND IN DRY CAT FOOD SEGMENT ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ We will maintain strong distribution, satisfy existing consumers and attract new ones SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 103
Slide 104: Unlocking Growth in Wet
UNLOCKING GROWTH IN WET 20% GROWTH 50% OF OF CATEGORY OPPORTUNITY MEOW MIX ® DOLLAR SALES SALES ARE WET ARE WET SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 104
Slide 105: Revitalizing Wet Cat Food
REVITALIZING WET CAT FOOD WET IS THE LARGEST SEGMENT IN RETAIL SALES AND IS GROWING FAST SOURCE: IRI PANEL DATA AND SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 105
Slide 106: Optimizing Dog Food
OPTIMIZING DOG FOOD IMPROVED ASSORTMENT AND EXPANDING OUR WET FOOD OFFERINGS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Double-digit Resurgence with sales growth +20% YoY momentum sales growth NOTE: NET SALES GROWTH 1H FY23. 106
Slide 107: Nutrish Momentum
NUTRISH MOMENTUM ® Reduced complexity in our assortment Continuing to expand into wet dog food and dog snacks Upgrading formulations with improved nutrition 107
Slide 108: U.S. Retail Coffee
U.S. RETAIL COFFEE $2.5B INSTANT 8% FY22 NET SALES PREMIUM 17% MAINSTREAM 46% ONE CUP 30% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 108
Slide 109: Coffee Strength
COFFEE STRENGTH #1 U.S. BRANDED AT-HOME COFFEE MANUFACTURER 3 of TOP 8 26% Share of Market coffee brands SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 109
Slide 110: Portfolio Positioned for Growth
PORTFOLIO POSITIONED FOR GROWTH OVER 50% OF OUR COFFEE K-CUP ® SALES PODS Shifting to faster-growing segments 110
Slide 111: Expanding to New Formats
EXPANDING TO NEW FORMATS We have bold ambitions to keep pace with consumer trends On-trend Investments in Explore product manufacturing & portfolio innovation partnerships additions 111
Slide 112: One of Our Fastest Growing Brands
O N E O F O U R FA S T E S T GROWING BRANDS Expect annual net sales $300M of in the next 2 years 112
Slide 113: Café Bustelo Momentum
CAFÉ BUSTELO MOMENTUM ® CONSUMER TAKEAWAY GREW 21% LAST YEAR ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Grew the most dollar share & was the fastest growing brand in the category last year 8th #1 #1 Largest Brand Espresso Latin in the Category Coffee Coffee SOURCE: SMUCKER INTERNAL MULTI-OUTLE
Slide 114: Geography Expansion
GEOGRAPHY EXPANSION GROWTH OPPORTUNITY 75% of Café Bustelo® sales come from ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ the northeast and southeastern states SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 114
Slide 115: The Future of Café Bustelo
THE FUTURE OF CAFÉ BUSTELO ® Well-positioned with consumers’ preferences, with ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙the ∙ ∙ ∙ ∙goal ∙ ∙ ∙ ∙ ∙ to ∙ ∙ ∙ become ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙the ∙ ∙ ∙ ∙ Latin ∙ ∙ ∙ ∙ ∙ ∙ ∙coffee ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙authority ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ across all formats in the U.S. 115
Slide 116: Opportunity to Increase Dual Users
O P P O R T U N I T Y TO INCRE ASE DUAL USERS* Expect annual net sales $1 BILLION of in the next 4 years *INDIVIDUALS WHO BUY AT DUNKIN’ RESTAURANTS AND FOR AT-HOME OCCASIONS. 116
Slide 117: Growth in Cold Coffee
GROWTH IN COLD COFFEE PREPARED ICED COFFEE DRINKS AT-HOME HAVE DOUBLED OVER THE LAST 5 YEARS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ LAUNCHING NEW DUNKIN’ ®COLD FORMATS IN 2023 SOURCE: NATIONAL COFFEE ASSOCIATION DRINKING TRENDS - SPRING 2022, AND SMUCKER INTERNAL DATA. 117
Slide 118: An Iconic Coffee Brand
AN ICONIC COFFEE BRAND Grew the most Over double the DOLLAR SHARE VOLUME SHARE last quarter of any other brand SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 12 AND 52 WEEKS ENDED NOVEMBER 06, 2022. 118
Slide 119: Growth Through Varieties
GROWTH THROUGH VARIETIES A D A R K E R , S M O OT H E R E X P E R I E N C E #1 #1 Dark Roast Fastest Growing Canister Dark Roast Canister DOLLAR SALES & MILLENNIALS & DOLLAR SHARE G E N E R AT I O N X SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 119
Slide 120: K-Cup Pods
K-CUP PODS ® W E C O N T I N U E TO O U T PA C E T H E C AT E G O R Y Expect annual net sales $1 BILLION of in next 5 years SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 52 WEEKS ENDED NOVEMBER 06, 2022. 120
Slide 121: Leveraging Our Powerful Brands
LEVERAGING OUR POWERFUL BRANDS POSITIONED TO BENEFIT FROM NEW COFFEE TRENDS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Delivering on evolving consumer preferences 121
Slide 122: U.S. Retail Consumer Foods
U.S. RETAIL CONSUMER FOODS OTHER $1.7B TOPPINGS 2% DIVESTED & SYRUPS 4% BUSINESSES FY22 NET SALES FRUIT SPREADS PEANUT BUTTER 18% 44% FROZEN HANDHELD 25% NOTE: AMOUNTS MAY NOT ADD DUE TO ROUNDING. 122
Slide 123: Shifting the Portfolio
SHIFTING THE PORTFOLIO YESTERDAY TODAY FUTURE % Net Sales % Net Sales % Net Sales UNLOCKING ORGANIC GROWTH BIGGER & COMPLEX FOCUSED STRONGER 123
Slide 124: Slide 124
Slide 125: A Category Leader
A CATEGORY LEADER #1 #1 in households #1 repeat rate with kids 9% share of the category & #1 velocity fastest growing 2 of the top 7 SKUs growth rate in frozen category SOURCE: SMUCKER INTERNAL MULTI-OUTLET SHARE REPORT 13 AND 52 WEEKS ENDED NOVEMBER 06, 2022. 125
Slide 126: Uncrustables Growth
UNCRUSTABLES GROWTH ® $650M+ $511M 15% 10-YEAR CAGR ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ON TRACK TO EXCEED $220M $650M NET SALES IN FY23 $126M $94M $12M FY01 FY07 FY12 FY17 FY22 FY23E 126
Slide 127: Expanded Capacity
EXPANDED CAPACITY COMPLETED LONGMONT PLANT EXPANSION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Capacity to produce approx. 1.5 BILLION sandwiches per year Expected to deliver approx. 1% of Total Company top-line growth 127
Slide 128: Significant Runway for Growth
SIGNIFICANT RUNWAY FOR GROWTH Larger “Iconic” JMS Brand Frozen Lunchbox (L52W) Leader Leader (Sandwiches) $ (M) $647 $881 $1,654 $1,702 HH Pen 11% 20% 23% 27% TDP 585 1,610 2,269 2,976 Awareness 65% 90% 81% 88% (Aided) SOURCE: SMUCKER INTERNAL IRI PANEL DATA AND MULTI-OUTLET SHARE REPORT 52 WEEKS EN
Slide 129: Winning the Lunchbox
WINNING THE LUNCHBOX WE PLAN TO Double current household penetration Broaden distribution, including new channels and geographies Increase awareness with national advertising 129
Slide 130: Continued Capacity Expansion
CONTINUED UNLOCKINGCAPACITY GROWTH EXPANSION IN WET Expect to grow to $1 BILLION in annual net sales by FY26 MANUFACTURING EXPANSION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Scottsville | Longmont | McCalla 2019 2022 2025 130
Slide 131: An Iconic Brand
AN ICONIC UNLOCKING BRAND GROWTH IN WET Bringing variety to the lunchbox ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ CORE OFFERINGS INNOVATION 131
Slide 132: Peanut Butter & Fruit Spreads
PEANUT BUTTER & FRUIT SPREADS Peanut butter and jelly is America’s #1 sandwich among households with kids A staple in over We have the #1 share positions 40 MILLION for both the peanut butter households across the U.S. and fruit spreads categories SOURCE: DIRECTIONS HOUSEHOLD SANDWICH CONSUMPTION RE
Slide 133: Meeting Consumer Needs
MEETING CONSUMER NEEDS NEW OFFERINGS, OPTIMAL SHELF SETS, LASTING CONNECTIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Now offer convenient squeezable formats & launching new on-the-go squeezable formats 133
Slide 134: Strategy for Growth
STRATEGY FOR GROWTH PET FOODS CONSUMER 2 COFFEE & PET SNACKS FOODS Confident in Delivering Continued Growth ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 134
Slide 135: Investor Day 2022
INVESTOR DAY 2022
Slide 136: Transformation Office
TRANSFORMATION OFFICE AMY HELD Chief Transformation Officer
Slide 137: Our Transformation Journey
OUR TRANSFORMATION JOURNEY PORTFOLIO CAPABILITIES PRODUCTIVITY LEADERSHIP POSITIONS 7000 EMPLOYEES IN GROWING CATEGORIES DRIVING VALUE CREATION AT EVERY LEVEL TRANSFORMED DIVESTITURES COMMERCIAL MODEL Natural Beverage & Grains & CAPABILITIES SUSTAINED Private Label Pet EFFICIENCIES 137
Slide 138: Transformation Today
TRANSFORMATION TODAY ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ WHAT? HOW? DELIVER OUR LONG-TERM INVEST IN GROWTH ALGORITHM GROWTH INITIATIVES Margin SG&A Enhancement Productivity Uncrustables | Pet Snacks | Coffee ® 138
Slide 139: A New Bottoms-Up Approach
A NEW BOTTOMS-UP APPROACH
Slide 140: Key Elements
KEY ELEMENTS Driven By People Closest to the Work Fully Cross-Functional Mobilizing More People Than Ever Before New Transformation Office 140
Slide 141: Focus Areas of Value Creation
FOCUS AREAS OF VALUE CREATION ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ OPERATIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ SUPPLY CHAIN PROCUREMENT DESIGN TO VALUE ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ SG&A NET REVENUE SALES MARKETING OPTIMIZATION 141
Slide 142: 500+ Initiatives Identified to Date
500+ OPERATIONS SUPPLY PROCUREMENT CHAIN INITIATIVES DESIGN TO VALUE SG&A NET REVENUE OPTIMIZATION IDENTIFIED TO DATE SALES MARKETING 142
Slide 143: Investor Day 2022
INVESTOR DAY 2022
Slide 144: Financial Priorities & Growth
Financial Priorities & Growth TUCKER MARSHALL Chief Financial Officer
Slide 145: Positioned for Long-Term Growth
POSITIONED FOR LONG-TERM GROWTH Advantaged Brand Proven Transformation Supporting & Resilient Growth Commercial Office Employees & Categories Opportunities Model Opportunities Planet 145
Slide 146: Bringing the Narrative Together
BRINGING THE NARRATIVE TOGETHER NEAR-TERM LONG-TERM INCREASING OPERATING FINANCIAL SHAREHOLDER DYNAMICS STRATEGY VALUE 146
Slide 147: A Strong Start to the Year
A STRONG START TO THE YEAR Delivered another quarter of solid results, ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ and expect this momentum to continue MODEST PRICE LEADING SHARE INVESTMENTS PRODUCTS THAT LOW RISK FROM ELASTICITY OF IN GREAT IN ICONIC SP
Slide 148: FY23 Financial Outlook
FY23 FINANCIAL OUTLOOK NET SALES GROWTH* ADJUSTED EPS** FREE CASH FLOW 5.5% -2 6.5% $8.35 - $8.75 $550M Comparable Basis (Mid-Point): +8% +2% vs. Prior Guidance Reaffirmed Guidance Positioned to deliver ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ LONG-TERM GROWTH *INCLUDES AN
Slide 149: Financial Priorities
FINANCIAL PRIORITIES CREATE LONG-TERM SHAREHOLDER VALUE Active & Execution to Prioritizing Maintaining Balanced Transparent Credible Highest-Return Productivity Focus Capital Communication Targets Opportunities & Cost Control Deployment 149
Slide 150: Total Shareholder Return
TOTAL SHAREHOLDER RETURN Goal: Consistent top quartile performer in food industry POSITIONED TO DELIVER 1-Year 3-Year 5-Year LONG-TERM CAGR CAGR CAGR GROWTH AND SJM 22% 17% 9% SHAREHOLDER VALUE Peer Group Avg. 22% 11% 7% S&P Packaged Foods 15% 7% 4% S&P 500 -14% 10% 10% 150 NOTE: DATA AS OF DECEMBER
Slide 151: Looking Ahead
LOOKING AHEAD Key Areas of Focus Maintain Strategic Cost Savings & Business Investments for Margin Momentum Growth Management 151
Slide 152: Long-Term Growth Targets
LONG-TERM GROWTH TARGETS NET SALES LSD ADJUSTED OPERATING INCOME MSD ADJUSTED EPS HSD TOTAL SHAREHOLDER RETURN 10+% 152
Slide 153: Our Long-Term Objectives
OUR LONG-TERM OBJECTIVES ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙A ∙ ∙ ∙steady, ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙compelling, ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙and ∙ ∙ ∙ ∙ ∙compounding ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙algorithm ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ DIVIDENDS SHARE REPURCHASE & DEBT REPAYMENT OPERATING MARGIN EXPANSION 10%+ HSD MSD LSD Net Sa
Slide 154: Net Sales
NET SALES Strengthened portfolio LOW-SINGLE -DIGIT Projected growth in our categories Percentage Growth Improved market share trends Focused growth initiatives 154
Slide 155: Drivers of Top-Line Growth
DRIVERS OF TOP-LINE GROWTH SMUCKER’S® PET GROWTH COFFEE GROWTH CONTINUED UNCRUSTABLES® DRIVEN BY MILK- DRIVEN BY GROWTH IN GROWTH TO $1B IN BONE® AND DUNKIN’® & AWAY FROM ANNUAL SALES MEOW MIX® CAFÉ BUSTELO® HOME BUSINESS 155
Slide 156: Operating Income
ADJUSTED Improved volume / mix OPERATING Stabilized supply chain INCOME Benefits from Transformation Office Productivity savings for SD&A MID-SINGLE-DIGIT Percentage Growth 156
Slide 157: Continuous Productivity Model
CONTINUOUS PRODUCTIVITY MODEL REDUCING RESTRUCTURING MINIMIZING MANAGING SALES OPTIMIZING NON-WORKING CORPORATE DISCRETIONARY & BROKERAGE MANUFACTURING MARKETING SUPPORT SPEND EXPENSES & SUPPLY CHAIN DOLLARS ORGANIZATION PROFITABILITY & MARGIN GROWTH, WHILE BALANCING RETURN & REINVESTMENT 157
Slide 158: Earnings Per Share
ADJUSTED EARNINGS Expect our PER SHARE capital deployment model to DRIVE GROWTH HIGH-SINGLE-DIGIT Percentage Growth 158
Slide 159: Cash Deployment | FY21 & FY22
CASH DEPLOYMENT | FY21 & FY22 Balancing reinvestment in the business ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ and returning cash to shareholders Capital Expenditures Debt Repayment Dividend Payments Share Repurchases $0.7B $1.1B $0.8B $0.9B Exceeding
Slide 160: Balanced Capital Deployment Model
BALANCED CAPITAL DEPLOYMENT MODEL Capital Dividends & Expenditures Share Repurchases CASH FROM 50% OPERATIONS 50% Strategic Debt Investments Repayment 160
Slide 161: Capital Expenditures
CAPITAL EXPENDITURES $550M LONG-TERM $418M OBJECTIVE $369M 3.5% OF NET SALES $307M $269M NEAR TERM ELEVATION DUE TO UNCRUSTABLES® CAPACITY EXPANSION FY19 FY20 FY21 FY22 FY23E % of NS 4.7% 3.4% 3.8% 5.2% 6.5%* *NOTE: BASED ON MIDPOINT OF FY23 NET SALES GUIDANCE PROVIDED ON NOVEMBER 21, 2022. 161
Slide 162: Debt Reduction
DEBT REDUCTION 3.6x 3.0x 2.8x 2.8x MAINTAIN INVESTMENT GRADE DEBT RATING ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 2.5x - 3.0x Debt Leverage Ratio Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 162
Slide 163: Share Repurchases
SHARE REPURCHASES $672 ($ in millions) $2.9B $495 $430 $426 $359 $305 $262 OF SHARE REPURCHASES IN LAST 10-YEARS Weighted FY12 FY13 FY14 FY16 FY17 FY21 FY22 Avg. Cost $74.51 $89.83 $100.19 $128.10 $139.14 $116.34 $131.23 per Share 163
Slide 164: Dividend Growth
DIVIDEND GROWTH 7% 10-YEAR CAGR $4.08 21 CONSECUTIVE YEARS OF DIVIDEND INCREASES $2.08 40-45% ADJUSTED EPS PAYOUT TARGET FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 164
Slide 165: Acquisitions
ACQUISITIONS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ IMPORTANT ROLE ASSESS RESULTING REASONABLENESS IN OUR STRATEGY IMPACT TO ROIC OF MULTIPLES 165
Slide 166: Key Takeaways
KEY Continue to Transformed Deliver Strong into a Stronger Results Company TAKEAWAYS ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ Continue Commitment to Delivering Financial Growth Discipline LONG-TERM SUSTAINABLE GROWTH & SHAREHOLDER VALUE Balanced Capital Deployment 166 166 CONFIDENTIAL
Slide 167: Investor Day 2022
INVESTOR DAY 2022
Slide 168: Mark Smucker
MARK SMUCKER Chair of the Board, President and Chief Executive Officer
Slide 169: Thank You
THANK YOU 169
Slide 170: Positioned for Future Growth
POSITIONED FOR FUTURE GROWTH Strong Brands Consumer Integrated ESG Delivering Strong Cash & Categories Centric Focus Framework Growth Generation 170
Slide 171: Investor Day 2022
INVESTOR DAY 2022
Slide 172: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 173: Additional Information
ADDITIONAL INFORMATION The J.M. Smucker Co. is the owner of all trademarks and logos referenced herein, except for the following, which are used under license: Dunkin’® is a trademark of DD IP Holder LLC, and Rachael Ray® is a trademark of Ray Marks II LLC. The Dunkin’® brand is licensed to The J.M.
Slide 174: Additional Information
ADDITIONAL INFORMATION Aaron Broholm Vice President, Investor Relations ir.team@jmsmucker.com Phone: (330) 682-3000 Investor Relations Website: https://investors.jmsmucker.com/ 174
The J.M. Smucker Company — Investor Day (December 2022) on 6ix