John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (November 2017)
74 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Nov 1, 2017
Slide 1: Annual stockholder meeting November 2nd, 2017
Annual stockholder meeting November 2nd, 2017 NASDAQ: JBSS Exhibit 99.1
Slide 2: Agenda
JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO FY 2017 Financial Milestones - Mike Valentine CFO & Group President Brand Marketing Overview - Howard Brandeisky Sr. VP Global Marketing & Customer Solutions JBSS FY 2018 Strategic Plan - Jeffrey Sanfilippo Chairman & CEO Closing Remarks
Slide 3: Forward-Looking Statements
Some of the statements in this presentation and any statements by management constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the mar
Slide 4: JBSS Corporate Overview
One of the largest nut processors in the world with fiscal year 2017 net sales of approximately $847 million State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world A North American market leader in every major selling channe
Slide 5: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type % of total gross sales Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique product formulas Fiscal Year 2017
Slide 6: Consistent Success Over Past Fiscal Years
Consistent Success Over Past 6 Fiscal Years Doubled Diluted EPS from FY 12 to FY 17 Net Sales increased by approximately 21% from FY 12
Slide 7: Yield based on average yearly stock price. CY through 9/19/17
Yield based on average yearly stock price. CY 17 through 9/19/17
Slide 8: Vision and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values People Integrity Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
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Slide 10: Building Our Future
BUILDING OUR FUTURE CREATE VALUE WITH KEY CUSTOMERS EXPAND CONSUMER REACH Win new customers by entering trusted partner by ching bi and customers Ringetaeen nef ner aoe = = EEE ered Ses gC The Global Source for Nutse
Slide 11: FY 2017 Accomplishments
Fisher recipe nuts continued its share leadership of the recipe nut category by increasing pound market share by +4.0 points Increased market share and distribution in the produce nut category with Orchard Valley Harvest products FY 2017 Accomplishments Source : IRI FY Ending 6/25/17 Total US MULO f
Slide 12: FY 2017 Accomplishments
Launched over 60 new items with our private brand partners Expanded Fisher brand awareness and distribution in the Commercial Ingredients channel Obtained new snack bite business with our contract packing customers to fully utilize our cluster line in FY 2018 FY 2017 Accomplishments
Slide 13: FY 2017 Accomplishments
Launched 100+ Fisher and Orchard Valley Harvest products on eCommerce sites Expanded Fisher and Orchard Valley Harvest in vending Started testing in Dollar Store channel FY 2017 Accomplishments
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Slide 15: Business Channel Diversification
$530 Fiscal 2017 Net Sales $847 Million Business Channel Diversification (Millions of $) $165 $152
Slide 16: Consumer Channel Net Sales
Fiscal 2017 Net Sales $530 Million FY 2017 Consumer Channel vs. FY 16 -6.4%
Slide 17: Commercial Ingredients Channel Net Sales
Fiscal 2017 Net Sales $165 Million FY 2017 Commercial Ingredients Channel vs. FY 16 -32.6%
Slide 18: Contract Packaging Channel Net Sales
FY 2017 Contract Packaging Channel Fiscal 2017 Net Sales $152 Million
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Slide 20: Slight decline in Nut Commodity Prices after Years of Increases
Slight decline in Nut Commodity Prices after Years of Increases Source: IRI: Nut Category – Multi Outlet Geography Time Periods: Total FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17 1% decline in FY 17 but average prices still up 30%+ since FY 11
Slide 21: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 6 Years Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17
Slide 22: Category Dollar Sales Plateaued after Years of Growth
Category Dollar Sales Plateaued after Years of Growth Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 11 Year Ending 7/3/11 to FY 2017 data ending 6/25/17
Slide 23: FY 2017 Financial Milestones
Fy 2017 financial milestones
Slide 24: JBSS Stockholders' Equity FY 1991-2017
In millions of $ 9.2% CAGR over 25.5 Years JBSS Stockholders’ Equity FY 1991-2017
Slide 25: JBSS Net Sales FYs 1991-2017
Increased Pound Volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $847 million In millions of $ Decreased prices and volume 6.7% CAGR over 25.5 Years JBSS Net Sales FYs 1991-2017
Slide 26: JBSS Total Outstanding Debt FYs 1991-2017
In millions of $ Facility Consolidation Project 60.8% decline in total debt since 2007 JBSS Total Outstanding Debt FYs 1991-2017
Slide 27: Total Outstanding Debt as % of Net Sales
JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2017
Slide 28: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from opera
Slide 29: Reconciliation of Net Income (Loss) to EBITDA
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 (in $,000's) NET INCOME (LOSS) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 36,125 INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966 3,492 2,910 INCOME TAX EXPENSE
Slide 30: EBITDA Trends
* EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure (in $ thousands) EBITDA Trends*
Slide 31: Nut Spot Market Prices vs. JBSS Rolling Gross Margin
ANFILIPPO & SON, IN PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % SSEEEES ESSE EEE SE I PRSESESESSOSUSESUICSCIESISESISSTSISTIESTE: Srolng Aum —ecashews 320s Source: SS save venders and ech
Slide 32: Financial Highlights: Q1 FY 2018 vs. Q1 FY 2017
Net Sales ($7,502) (3.4%) Sales Volume (Lbs. Sold) 0 0% Gross Profit $(1,635) (4.5%) Net Income $252 2.5% Earnings Per Share (Diluted) $0.02 2.2% Operating Cash Flows $(18,170) (43.7%) Total Debt $31,812 98.1% Change % Change Financial Highlights: Q1 2018 vs. Q1 2017 (in 000’s except EPS) Financial
Slide 33: FY 2017 Brand Marketing Overview
Fy 2017 brand marketing overview
Slide 34: Snack Nuts, Grow Brands, Recipe Nuts
Snack Nuts Grow Brands Recipe Nuts
Slide 35: Recipe Nuts
JOHN B. SANFILIPPO & SON. iS f Recipe Nuts ge = ‘Walnut Halves & Pieces
Slide 36: Continued Growth for Fisher Recipe in FY17
Continued Growth for Fisher Recipe in FY 17 Total Fisher Recipe Brand Growth FY 17 vs. FY 16 +11% +5% POUND SALES DOLLAR NET SALES Source: JBSS shipment data 52 week versus 52 week comparison Recipe Nuts
Slide 37: Fisher Recipe has Increased Market Share
Fisher Recipe has Increased Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2017 Data Ending 6/25/17
Slide 38: Hawaii Distribution Resulted in Share Gains for Fisher Recipe Nuts
National Distribution Hawaii Distribution Resulted in Share Gains for Fisher Recipe Nuts As of 7/19/17
Slide 39: Continue to Build Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 40: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Multi-Platform Food Network Partnership Influencer Marketing National Print In-Store Support Content: Social Media and Web Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network
Slide 41: Product Upsizing along with Improved Nut Variety and Size Communication
Product Upsizing along with Improved Nut Variety and Size Communication
Slide 42: Snack Nuts
JOHN B- SANFILIPPO & SON; IN iS f Snack Nuts
Slide 43: Challenging Year for Fisher Snack in FY17
Challenging Year for Fisher Snack in FY 17 Total Fisher Snack Sales FY 17 vs. FY 16 Snack Nuts Source: JBSS shipment data 52 week versus 52 week comparison POUND SALES DOLLAR NET SALES -3% -12%
Slide 44: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 45: Fisher Market Share Plateaued in High Franchise in FY17
Fisher Market Share Plateaued in High Franchise in FY 17 Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography –Periods: FY 13 to FY 17 data ending 6/25/17.
Slide 46: Core Dry Roast Peanut Business Remains Healthy
Core Dry Roast Peanut Business Remains Healthy
Slide 47: Pure and Simple Goodness
JOHN B- SANFILIPPO & SON, INC- Pure and Simple Goodness
Slide 48: Strong Growth of Our Produce Brands
Strong Growth of Our Produce Brands Produce Brand Growth FY 17 vs. FY 16 +24% +29% DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison. Includes Orchard Valley Harvest brand and Sunshine Country brand
Slide 49: Strong Share Growth in Produce Nut Category
Strong Share Growth in Produce Nut Category over the last 3 Fiscal Years Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2017 data ending 6/25/17 Includes Orchard Valley Harvest and Sunshine Country 0.6% 0.6% 0.9% 1.1% 1.3%
Slide 50: National Distribution
BREAUX Markets 1 1 Distribution 2 National Distribution Updated 7.19.17 Updated as of 7.19.17
Slide 51: Orchard Valley Harvest Delivers on Three Important Consumer Trends
Consumers want healthy snacking options (3) (1) Source: Instantly poll of 4,200 people in the US between 9/15 and 9/21 2015 (2) Source: The Hartman Group, Reinventing health & nutrition study 2010/2013 (3) Source: Symphony IRI Group, 2013 Consumers want clean, simple ingredients (1,2) Consumers want
Slide 52: New Wellness Mixes Help Meet Consumer Need for On-The-Go Goodness
New “Wellness Mixes” Help Meet Consumer Need for On-The-Go Goodness New in FY18
Slide 53: Salads are the #1 Usage Occasion for Nuts
Salads are the #1 Usage Occasion for Nuts! Source: The NPD Group/NET In-Home Database, Indices for Seasonality of Total Nuts, Data for 10 Years Ending Nov 2011 We Have Expanded our Portfolio to Address Growing Usage of Nuts in Salads NO Artificial INGREDIENTS Multi Pack! 8 Individual Servings
Slide 54: Salad is the #1 Usage Occasion for Non-Snacking Nuts
Salad is the #1 Usage Occasion for Non-Snacking Nuts 22% of non-snacking nut usage is for Salads 19% of non-snacking nut usage is for Baking Indices for Seasonality of Total Nuts Data for 10 years ending Nov 2011; Measures % of Eating Source: The NPD Group/NET In-Home Database
Slide 55: Public Relations, Shopkick, Integrated Marketing Support
Public Relations Shopkick Integrated Marketing Support
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Slide 57: Building Our Future
aan CEs JOHN B- SANFILIPPO & SON, INC. BUILDING OUR FUTURE EXPAND CREATE VALUE CONSUMER WITH KEY REACH CUSTOMERS Utilize consumer insights to develop Win new customers by entering Be the trusted partner by products and integrated marketing new channels, launching offering supply chain and programs t
Slide 58: Growth Drivers: JBSS Strategies & Market Forces
GROWTH DRIVERS Penetrate existing customers with current products Increase velocity of current products Gain new customers Launch new products Enter new channels Expand beyond core product portfolio M&A Form partnerships FY2018 Plan Consumer Commercial Ingredient Contract Manufacturing Resources & S
Slide 59: JBSS Brands: Expand Consumer Reach
a Fi fer Fi iG es. GROW (5! y | I O urd Ve JBSS BRANDS Utilize consumer insights to develop products and integrated marketing | —A programs that build brand equity, = (Tr anlY (caael & meet consumer needs, and grow the category for our retail partners.
Slide 60: Maintain Fisher Recipe #1 Share Position by Expanding Distribution
Maintain Fisher Recipe #1 Share Position Nationally by Expanding Distribution New distribution at Meijer Stores New distribution at Publix Stores
Slide 61: Reposition Fisher Snack and Expand Distribution Nationally
Reposition Fisher Snack and Expand Distribution Nationally Gain new customers beyond core Midwest region
Slide 62: Launch Innovative Products Beyond Core Portfolio
Launch Innovative Products Beyond Core Portfolio and Expand Distribution
Slide 63: Develop and Launch Sales in Alternative Channels
Develop and Launch Sales in Alternative Channels Dollar Stores E-Commerce Non-Commercial Foodservice Club S tores
Slide 64: Expanding Consumer Reach Across All JBSS Brands
Expanding Consumer Reach Across All JBSS Brands Vending eCommerce Dollar Stores Non-Commercial Foodservice
Slide 65: Be Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks
Be Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks
Slide 66: Establish Trust & Competitive Advantage
Establish Trust & Competitive Advantage Global Procurement Expertise Quality, Food Safety, Freshness Operational Excellence
Slide 67: Feedback From A Customer
“Hey this might be kind of random but I just wanted to say that I work here at Walmart and I stock your product and I just wanted to show my appreciation for your ready for sale display boxes they are the easiest most simple boxes to open and I can't tell you how many companies make horrid ready for
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Slide 69: Above Average Growth Projected for E-Commerce & Discounter
Source : A Strategy Worth Achieving Presentation from Kantar Retail, December 2016 Above Average Growth Projected for E-Commerce & Discounter 69
Slide 70: Food Spending
Food At Home (FAH) Food Away From Home (FAFH) WWII Source: Data through 2014 calculated by the Economic Research Service, USDA, from various data sets from the U.S. Census Bureau and the Bureau of Labor Statistics. 2015-2020 estimated based on previous 7 years data trend. Food Spending 70
Slide 71: Headwinds and Tailwinds Create Opportunities
“No problem is larger than a peanut and can be conquered with courage and persistence.” - Ulysses L. Baxter Colorado Springs Gazette July 17, 1966 Headwinds and Tailwinds Create Opportunities
Slide 72: This Team Will Drive Results
0h 3S soun 8. SANFILIPPO «SON, This Team Will Drive Results
Slide 73: JBSS Mission
JBSS Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our shareholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential o
Slide 74: Thank You
Thank You We Look Forward to a Successful FY 2018
Sanfilippo John B & SON — Shareholder Meeting (November 2017) on 6ix