Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2019 Earnings Presentation
28 slides from Tyson Foods's earnings presentation, Nov 12, 2019
Slide 1: Q4 Fiscal 2019 Supplemental Information
— Q4 Fiscal 2019 Supplemental Information 1 November 12, 2019
Slide 2: Today's Speakers
Today’s Speakers Noel White Stewart Glendinning President & CEO EVP & CFO
Slide 3: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2020, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 4: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 5: FY19 Accomplishments
FY19 Accomplishments • Expanded global operations in Asia and Europe • Launched innovation in our iconic brands • Launched alternative protein products • Building a new case-ready beef and pork plant • Implemented a new enterprise technology platform • Opened Tyson Manufacturing Automation Center 5
Slide 6: FY19 Accomplishments
FY19 Accomplishments • Partnering with Environmental Defense Fund on land stewardship • Partnering with Proforest to conduct a deforestation risk assessment across our supply chain • Leading innovative animal welfare research • Expanded Progressive Beef program 6 Tyson Foods, Inc. November 12, 2019
Slide 7: FY19 Accomplishments
FY19 Accomplishments • Record sales of $42.4 billion • Record Beef segment operating income 7 Tyson Foods, Inc. November 12, 2019
Slide 8: Retail Volume Performance
Retail Volume Performance Core Business Lines & Total Tyson Retail 4.1% 2.7% 1.8% Total 0.9% F&B 0.6% 0.0% -0.1% Core Bus. -0.1% Total Tyson -0.6% Lines Retail -1.6% -3.2% -3.7% Source: Nielsen Total U.S. xAOC Fixed Weight Volume EQ Sales 52 weeks ending 09/28/2019 Product = Total F&P, Alcohol + Pet
Slide 9: Broadline Foodservice Volume Performance
Broadline Foodservice Volume Performance Volume Change vs. Prior Year Manufacturer Label + Distributor Manufacturer Label Label Label + Distributor 3.0% 2.5% 1.3% Total Broadline Focus 6 Categories Tyson Focus 6 Source: NPD SupplyTrack®, Month Ending August 2019. Excludes Commercial Large Chains and
Slide 10: New Case-Ready Beef & Pork Plant
New Case-Ready Beef & Pork Plant Eagle Mountain City, Utah 10 Tyson Foods, Inc. November 12, 2019
Slide 11: FY19 Accomplishments – Operations
FY19 Accomplishments – Operations • Record low turnover • Improved safety • Expanded life skills classes for frontline team members 11 Tyson Foods, Inc. November 12, 2019
Slide 12: FY20 High Single-Digit Adjusted EPS Growth
FY20 • Meet or exceed long-term target: High Single-Digit Adjusted EPS Growth 12 Tyson Foods, Inc. November 12, 2019
Slide 13: Jimmy Dean Frozen Breakfast
Jimmy Dean® Frozen Breakfast Sales Volume Up 6.6% Source: Nielsen Total US + AOC, 52 weeks ending Oct. 26, 2019 13 Tyson Foods, Inc. November 12, 2019
Slide 14: Jimmy Dean Product Launches
Jimmy Dean® Product Launches Frozen Protein Breakfast
Slide 15: Alternative Protein & Blended Products
Alternative Protein & Blended Products
Slide 16: Prepared Foods Segment Results
Prepared Foods Segment Results Adjusted Operating Income1 Q419 Sales volume ↑1.0% 2 ($ in millions) Average price ↑2.8% 2 Dollars ROS% FY19 Sales volume ↑0.1% 2 Q419 $149 6.9% Average price ↑1.8% 2 FY20 Outlook Adjusted Operating Margin 1 FY19 $902 10.7% 10-12% 1Represents a non-GAAP financial measu
Slide 17: Finney Co. Plant Reconstruction
Finney Co. Plant Reconstruction Electrical Room Post-Fire Electrical Room Today 17 Tyson Foods, Inc. November 12, 2019
Slide 18: Finney Co. Plant Reconstruction
Finney Co. Plant Reconstruction Hydraulic Area Post-Fire Hydraulic Area Today 18 Tyson Foods, Inc. November 12, 2019
Slide 19: Beef Segment Results
Beef Segment Results Adjusted Operating Income1 Q419 ($ in millions) Sales volume ↓4.2% Average price ↑2.8% Dollars ROS% FY19 Sales volume ↓0.1% Average price ↑2.4% Q419 $407 10.5% FY20 Outlook Adjusted Operating Margin 1 FY19 $1,139 7.2% 6.5-7.5%, absent impacts from African Swine Fever 1Represents
Slide 20: Pork Segment Results
Pork Segment Results Adjusted Operating Income1 Q419 ($ in millions) Sales volume ↑2.9% Average price ↑8.1% Dollars ROS% FY19 Sales volume ↑0.8% Average price ↑0.3% Q419 $27 2.1% FY20 Outlook Adjusted Operating Margin 1 FY19 $264 5.4% 6-8%, absent impacts from African Swine Fever 1Represents a non-G
Slide 21: Chicken Segment Results
Chicken Segment Results Adjusted Operating Income1 Q419 Sales volume ↑13.1% 2 ($ in millions) Average price ↓2.4% 2 Dollars ROS% FY19 Sales volume ↑19.7% 2 Average price ↓9.3% 2 Q419 $95 2.8% FY20 Outlook Adjusted Operating Margin 1 FY19 $655 4.9% 6-8%, absent impacts from African Swine Fever 1Repre
Slide 22: Tyson Brand Innovations
Tyson® Brand Innovations 22 Tyson Foods, Inc. November 12, 2019
Slide 23: Global Growth
Global Growth 23 TYSON FOODS, INC. November 12, 2019
Slide 24: FY19 Highlights
FY19 Highlights ($ in millions, except per share data) Q419 FY19 • Record sales of $42.4B Sales $10,884 $42,405 Adjusted Operating Income1 $686 $2,977 Adjusted Operating Margin1 6.3% 7.0% • Paid off $1B of senior notes in Q4, Adjusted EPS1 $1.21 $5.46 mostly with cash generated in the Adjusted Opera
Slide 25: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 26: Appendix
Appendix
Slide 27: EPS Reconciliations
EPS Reconciliations Fourth Quarter Twelve Months Ended $ in millions, except per share data Pretax Impact EPS Impact Pretax Impact EPS Impact (Unaudited) 2019 2018 2019 2018 2019 2018 2019 2018 Reported net income per share attributable to Tyson - - $1.01 $1.47 - - $5.52 $8.19 Add: Restructuring and
Slide 28: Segment Operating Income & Operating Margin Reconciliations
Segment Operating Income & Operating Margin Reconciliations $ In millions, except per share data Adjusted Segment Operating Income (Loss) (Unaudited) (for the fourth quarter ended September 28, 2019) Prepared International Intersegment Beef Pork Chicken Foods /Other Sales Total Sales $ 3,861 $ 1,258