Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q3 2018 Earnings Presentation
18 slides from Tyson Foods's earnings presentation, Aug 6, 2018
Slide 1: Supplemental Information 3rd Quarter Fiscal 2018
Supplemental Information 3rd Quarter Fiscal 2018 August 6, 2018
Slide 2: Today’s Speakers
Today’s Speakers Tom Hayes Stewart Glendinning President & CEO EVP & CFO 2 Tyson Foods, Inc. | August 6, 2018
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance and including, but not limited to, statements appearing in the “Outlook” section and statements relating to adjusted EPS guidan
Slide 4: Our Strategy: Sustainably Feed the World With the Fastest Growing Protein Brands
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 Our company through fitness through and our differentiated continuous world for future capabilities improvement generati
Slide 5: Q3 FY’18 Highlights
Q3 FY’18 Highlights ($ in millions, except per share data) Q3 FY’18 • Adjusted EPS1,2 of $1.50 Sales $10,051 Adjusted Operating Income1 $816 • Record Q3 adjusted operating Adjusted Operating Margin1 8.1% 1 income of $816M, up 8% from Adjusted EPS1 $1.50 last year • Strong operating cash flow of ($ i
Slide 6: Segment Results – Beef
Segment Results – Beef Q3’18 Q3’18 Adjusted Operating Adj. Operating Income1 Volume +2.7% Margin1 Outlook ($ in millions) Avg. Price -2.8% FY18 & FY19: >6% Dollars ROS% $319 8.0% 1Represents a non-GAAP financial measure. Q3’18 Adjusted operating income and adjusted operating margin are explained and
Slide 7: Segment Results – Pork
Segment Results – Pork Q3’18 Q3’18 Adjusted Operating Adj. Operating Income1 Volume -2.1% Margin1 Outlook ($ in millions) Avg. Price -7.4% FY18 & FY19: ~6% Dollars ROS% $67 5.6% 1Represents a non-GAAP financial measure. Q3’18 Adjusted operating income and adjusted operating margin are explained and
Slide 8: Segment Results – Chicken
Segment Results – Chicken Q3’18 Q3’18 Adjusted Operating Adj. Operating Income1 Volume ~Flat Margin1 Outlook ($ in millions) Avg. Price +3.7% FY18 & FY19: ~8% Dollars ROS% $196 6.6% 1Represents a non-GAAP financial measure. Q3’18 Adjusted operating income and adjusted operating margin are explained
Slide 9: Segment Results – Prepared Foods
Segment Results – Prepared Foods Q3’18 Q3’18 Adjusted Operating 1 Record Adj. Operating Income Volume +2.7% Margin1 Outlook ($ in millions) Avg. Price +6.8% FY18 & FY19: >11% Dollars ROS% $249 11.7% 1Represents a non-GAAP financial measure. Q3’18 Adjusted operating income and adjusted operating marg
Slide 10: Total Company Outlook
Total Company Outlook 1 Sales CapEx FY18 Adjusted EPS FY18: $40-41B FY18: $1.2-1.3B FY19: $42B FY19: ~$1.6B $5.70-6.00 2,3 FY19 topline growth of ~3% over FY18 Beef Pork Chicken Prepared Foods Adjusted Adjusted Adjusted Adjusted Operating Margin Operating Margin Operating Margin Operating Margin FY
Slide 11: Core 9 and Total Tyson Dollar Performance
Core 9 and Total Tyson Dollar Performance Dollar Sales % Chg. among top 10 branded food companies > $5B 2.6% 2.5% 2.4% 2.1% 1.8% 0.3% 0.0% Core 9 Total Total -0.1% -1.0% -1.5% -1.6% F&B -1.7% Source: IRI Total U.S. Multi-Outlet (x Costco) Volume Sales 52 weeks ending 7/01/2018 Product = Total Edible
Slide 12: Core 9 and Total Tyson Volume Performance
Core 9 and Total Tyson Volume Performance Volume sales % change among top 10 branded food companies >$5B Core 9 Total 5.1% Total 1.1% F&B 0.3% 0.1% -0.3% -0.5% -0.7% -0.8% -1.3% -3.1% -5.7% -7.0% Source: IRI Total U.S. Multi-Outlet (x Costco), Volume Sales, 52 weeks ending 7/1/2018 Includes Total Ed
Slide 13: Innovation – Protein-Packed Brands
Innovation – Protein-Packed Brands Morning Breakfast Protein on Without the Move Bread Carbs Take a Bite Out Delicious of Summer Dinner Made Simple 13 Tyson Foods, Inc. | August 6, 2018
Slide 14: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. Year Ago (L52) 3.4% 2.9% = 1.2% Tyson Focus 6 Share Growth Total Broadline Focus 6 Categories Tyson Focus 6 NPD SupplyTrack ® data, 52 weeks ending May 2018 Excludes Large Chain and Operator Label data Focus Six = Chicken Value Added, Brea
Slide 15: Our Strategy: Sustainably Feed the World With the Fastest Growing Protein Brands
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 Our company through fitness through and our differentiated continuous world for future capabilities improvement generati
Slide 16: Appendix: Non-GAAP Reconciliations
Appendix 3rd Quarter Fiscal 2018 Non-GAAP Reconciliations
Slide 17: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) Nine Months Ended Third Quarter June 30, 2018 Pretax Impact EPS Impact Pretax Impact EPS Impact 2018 2017 2018 2017 2018 2017 2018 2017 Reported net income per share attributable to Tyson $ 1.47 $ 1.21 $ 6.72 $ 3.72 Add: One-Time Cas
Slide 18: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations Adjusted Segment Operating Income (Loss) In millions (for the third quarter ended June 30, 2018) (Unaudited) Prepared Intersegment Beef Pork Chicken Foods Other Sales Total Sales $ 3,993 $ 1,197 $ 2,973 $ 2,132 $ 75 $ (319) $ 10,051 Repor