Hormel Foods Corporation · NYSE:HRL

Hormel Foods — Investor Day (June 2015)

25 slides from Hormel Foods's investor day presentation, Jun 11, 2015

  1. Slide 1: Grocery Products

    Grocery Products Jim Splinter Group Vice President

  2. Slide 2: Total Center of Store Food is a $172B Category

    Total Center of Store Food is a $172B Category Five Year CAGR: + 2.1% in Dollars and + 0.2% in Units $167,901 $170,542 $172,342 $155,427 $156,819 $163,000 76,598 77,652 77,834 77,060 77,313 77,436 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 Dollar Sales (MM) Unit Sales (MM) Source: IRI TSV, Tota

  3. Slide 3: Selected Category Growth Trends

    Selected Category Growth Trends 5 YR CAGR - Units 5 YR CAGR - Dollars 2.6% PEANUT BUTTER 5.9% 2.3% MEXICAN FOOD* 3.1% 0.8% CANNED MEAT* 2.4% -3.6% SOUP - CONDENSED -1.4% -2.4% COLD CEREAL -1.5% -1.8% MICROWAVE* -3.4% Source: IRI Market Advantage & TSV CY Periods 2009 – 2014 * = Hormel Custom Definit

  4. Slide 4: Financial Evolution

    Financial Evolution 3Yr CAGR Net Sales 14% & Segment Profit 6% Grocery Products % Net Sales % Segment Profit Change to YrAgo Change to YrAgo (Dollars in Millions) 2011 + 2% + 4% 2012* + 10% + 12% 2013** + 30% + 18% 2014 + 3% - 9% * MMX’s Don Miguel Foods revenues reported in Grocery Products ** Horm

  5. Slide 5: Key Performance Targets

    Key Performance Targets Revenue Growth of 3% Brand Building & Innovation Segment Profit Growth of 6%

  6. Slide 6: Adjusting To A Changing Consumer

    Adjusting To A Changing Consumer Three Key Consumer Groups Millennials Hispanics Value Shopper Millennials CPG dollar Hispanics forecasted to Value Shopper: 2/3 of volume share account for >50% of the population will will grow 70%+ by 2020 population growth from remain economically 2010 through 2020

  7. Slide 7: Transparency, Relevancy and Authenticity

    Transparency, Relevancy and Authenticity Multicultural On-the-go Healthy / Holistic

  8. Slide 8: Innovation Hitting $3B X '16 Expectations

    Innovation Hitting $3B X ‘16 Expectations •15% of sales are from products new to the division since 2000 Multicultural On-the-go Healthy / Holistic

  9. Slide 9: Increased Baseline Marketing Support

    Increased Baseline Marketing Support Advertising Investment Levels* CAGR + 6% vs. 2010 2010 2015 Data Source: Internal Reporting & Revenue Accounting * = Includes MegaMex

  10. Slide 10: Effortless meal creativity; defines the category; iconic equity

    • Effortless meal creativity • Defines the category • Iconic equity

  11. Slide 11: SPAMERICAN! Tour

    SPAMERICAN! TOUR © & 2)/ SPAMERICAN! TOUR © imo / e B \)

  12. Slide 12: Effortless meal creativity; on-the-go

    • Effortless meal creativity • Defines the category • Iconic equity On-the-go

  13. Slide 13: America's #1 chili since 1936

    • America’s #1 chili since 1936 • Universal appeal • In & out of the bowl usage • Iconic brand equity

  14. Slide 14: WHOLEY) Cogiiser)

    WHOLEY) Cogiiser) Vayve spam ee CL ta |

  15. Slide 15: #1 in single-serve, shelf-stable meals

    • #1 in single-serve, shelf-stable meals • Delivering moments of satisfaction • Established blue-collar adults

  16. Slide 16: . Za . v - '

    . Za . v - '

  17. Slide 17: MegaMex Foods

    MegaMex Foods Structure Vision 50% 50% • Headquartered in Orange, CA To bring the spirit • 5 locations worldwide of Mexico to every table • 3,500 employees

  18. Slide 18: Authentic, Innovative, Social engaged

    • Authentic • Innovative • Social engaged • Solutions-focused Multicultural

  19. Slide 19: Relevant / fun; Power food; Organic offerings

    • Relevant / fun WHOLLY • “Power food” GUACAMOLE YUCATAN 42.7% 15.2% • Organic offerings • Socially engaged SABRA 13.5% • Innovative • Category leader PRIVATE All Other LABEL 14.8% CALAVO 9.9% 3.8% Healthy / Holistic Multicultural

  20. Slide 20: SKIPPY is the peanut butter that spreads simple fun!

    SKIPPY® is the PEANUT BUTTER that SPREADS SIMPLE FUN! On-the-go Healthy / Holistic

  21. Slide 21: (Hoxie!)

    (Hoxie!)

  22. Slide 22: SKIPPY is the peanut butter that spreads simple fun!

    SKIPPY is the PEANUT BUTTER that SPREADS SIMPLE FUN! On-the-go Healthy / Holistic

  23. Slide 23: SKIPPY P.B. Bites

  24. Slide 24: Summary

    Summary • Performance target guidance of 3% topline and 6% bottom-line • Division is adjusting to a changing consumer • Managing the legacy core portfolio for modest growth • Restructuring Microwave Meals with a renewed focus on core users • Expect MegaMex to continue being our “growth engine” • Exe

  25. Slide 25: The End

    The End

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