Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Barclays Global Consumer Staples Conference 2017
33 slides from Tyson Foods's conference presentation, Sep 6, 2017
Slide 1: Grow. Deliver. Sustain.
— Grow. Deliver. Sustain. Barclays Global Consumer Staples Conference September 6, 2017
Slide 2: Tom Hayes, Sally Grimes, Curt Calaway
Tom Hayes Sally Grimes Curt Calaway Chief Executive Officer Group President SVP Controller Prepared Foods Chief Accounting Officer
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: A strong food company
A strong food company Diversified Enviable protein portfolio brand portfolio — FY16 Sales by Segment —
Slide 5: Delivering consistent EPS growth over time
Delivering consistent EPS growth over time FY16 Adjusted EPS1 Growth Up 39% vs. FY15 2 $4.95 – 5.05 1 $4.39 1 1 $3.15 $2.94 1 1 $2.26 $1.97 FY12 FY13 FY14 FY15 FY16 FY17 proj. 1 Represents a non-GAAP financial measure. Adjusted EPS is explained and reconciled in the Appendix at “EPS Reconciliations.
Slide 6: Leading for tomorrow
Leading for tomorrow Purpose Strategically Organized to Driven. Focused. Execute. — — —
Slide 7: Grow. Deliver. Sustain.
Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generations
Slide 8: Grow.
Grow. 8
Slide 9: Growth in food has been modest
Growth in food has been modest Volume % Change Year Over Year Total Retail Food & Beverage SOURCE: IRI Total US - Multi Outlet, YOY Tyson Foods Fiscal Quarters
Slide 10: Playing in a growth space is an advantage
Playing in a growth space is an advantage Consumer demand for protein… …is driving growth at retail 54% Year Over Year Volume % Change, Latest 52 weeks #1 Of people Desired Health are adding & Wellness and/or Attribute2 increasing protein in Good Source of their diets1 Protein All-Natural Ingredient
Slide 11: A unique model is an advantage
A unique model is an advantage Create Leverage Demand Innovate Scale — — — • Portfolio of billion $, iconic and • Nearly 300 R&D team • 11,000 family farmers emerging brands members • Produces 1/5 of chicken, beef • Deep expertise in insight and • 9 chefs and 54 culinary and pork pounds in the USA b
Slide 12: Leading brands are an advantage
Leading brands are an advantage Tyson Core 9 1 1 1 1 1 Frozen Branded Frozen Hot Breakfast Prepared Stacked Protein Dogs Sausage Chicken Bacon Breakfast 1 2 1 1 Super Premium Smoked Branded Corn Smoked Sausage Lunchmeat Dogs Sausage Source: IRI, Total US Multi-Outlet, data through 8/6/17
Slide 13: Tyson Core 9 volume growth stronger than total food and beverage
Tyson Core 9 volume growth considerably stronger than total food and beverage over time Volume % Change Year Over Year +270bps +220bps +410bps +690bps +560bps +630bps +460bps Tyson Core 9 % Chg vs. Total F&B SOURCE: IRI Total US - Multi Outlet, YOY Tyson Foods Fiscal Quarters
Slide 14: The Perimeter
The Perimeter Raw / Chilled / Freshly Prepared
Slide 15: Tyson is advantaged in the perimeter
Tyson is advantaged in the perimeter Tyson Excels in Tyson Skews to the Tyson Outperforms Perimeter Categories Fresh Retail Perimeter Those Categories that Outperform % of Retail Sales Volume from Perimeter % Change Sales Volume % Change Sales Volume Latest 52 Weeks Latest 52 Weeks Latest 52 Weeks 6
Slide 16: Leveraging our model to lead in the perimeter
Leveraging our model to lead in the perimeter Keep Core Chilled Build Brands & Innovate Win in the Freshly Categories Fresh in Fresh Raw Food Prepared Grocerant — — — Fresh breakfast in minutes Relevant attributes >60% ACV Simpler, faster prep Strong repeat rates Category growth +58% Bring a brand k
Slide 17: Frozen
Frozen Section Yee Soa
Slide 18: Tyson advantage leading to growth
Tyson advantage leading to growth Total Retail Frozen Foods Volume L52wks (1.2%) +4.9% +7.2% Volume Change vs. Total Frozen Foods Frozen Categories Where Tyson Plays1 +70 bps — — Frozen value added Frozen volume growth +460 bps volume growth last 52wks last 52wks Frozen2 Source: IRI Total U.S. Multi
Slide 19: Accelerating momentum with fresh, frozen innovation in 2018
Accelerating momentum with fresh, frozen innovation in 2018
Slide 20: Prepared Foods model
Prepared Foods model Mix Grow Advantage Demand — Play in the right spaces Create Performance Advantage Value Expand — Margins Leverage differentiated capabilities
Slide 21: Deliver.
Deliver.
Slide 22: FY17 Outlook
FY17 Outlook Sales of ~$38B CapEx of ~$1B Adjusted EPS of Expect AdvancePierre to have $4.95-5.051 an incremental impact of • ~13-15% growth over FY16 approximately $550 million • 5yr CAGR of ~20% FY 17 Segment Outlook Nine Months Ending Adjusted ROS %2 Q4 Projection FY17 Outlook FY17 Beef 5.2% ~4-5
Slide 23: FY18 Outlook
FY18 Outlook 1 Sales of ~$41B2 CapEx of ~$1B+ Topline growth of ~6% as we grow volume and have full year benefit of AdvancePierre Beef Pork Chicken Prepared Foods Operating margin Operating margin Operating margin Operating margin in around 5% above 6-8% ~10% with nearly upper ½ of 10-12% normalized
Slide 24: Enabling growth through synergies and efficiency
Enabling growth through synergies and efficiency Integration Growth Enabled by Synergies Financial Fitness — — Expect to realize net synergies Program that integrates in excess of $200 million growth and cost targets. within three years of APFH Expect update in the acquisition. coming weeks.
Slide 25: Sustain.
in ; - Sustain. —
Slide 26: Taking a holistic approach to sustainability
Healthier Taking a Food holistic Healthier Healthier Bottom-line Animals approach to sustainability. Healthier Healthier Communities Environment Healthier Workplace
Slide 27: Tyson's significant sustainability momentum
Tyson's significant sustainability momentum Teams with World Names Justin Whitmore as CEO Signs Pledge to Resources Institute on First Chief Sustainability Support Workplace Industry Leading Officer Diversity and Inclusion Environmental Goals 4/20 4/26 5/23 6/21 7/25 8/7 Strong 3rd Qtr Positions Com
Slide 28: Grow. Deliver. Sustain.
Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generations
Slide 29: Thank you.
Thank you. —
Slide 30: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 31: EPS Reconciliations
EPS Reconciliations 12 Months Ended $ in millions, except per share data October 1, 2016 October 3, 2015 September 27, 2014 September 28, 2013 September 29, 2012 (Unaudited) Operating Operating Operating Operating Operating Income EPS Income EPS Income EPS Income EPS Income EPS Reported from Continu
Slide 32: EPS Reconciliations – continued
EPS Reconciliations – continued (a) Impact of additional week was calculated by using the fourth quarter of fiscal 2015 adjusted operating income (prior to the additional week impact) and divided by 14 weeks. Adjusted operating income and adjusted net income from continuing operations per share attr
Slide 33: Segment operating income and operating margin reconciliations
Segment operating income and operating margin reconciliations In millions Adjusted Segm ent Operating Incom e (Loss) (Unaudited) (for nine months ended July 1, 2017) Prepared Intersegm ent Beef Pork C hick en F oods Other Sales Total Sales $ 11,015 $ 3,876 $ 8,374 $ 5,590 $ 257 $ (997) $ 28,115 Repo
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