Calavo Growers, Inc. · NASDAQ:CVGW
Calavo Growers — Investor Presentation (October 2008)
25 slides from Calavo Growers's investor presentation, Oct 1, 2008
Slide 1: Fall 2008 Institutional Investor Visit
CALAVOGROWERS,INC. NASDQ: CVGW Fall 2008 Institutional Investor Visit CONFIDENTIAL © 2008 Calavo Growers, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, this presentation contains forward-looking statements that involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical
Slide 3: Business Overview
Business Overview Everything between the produce grower and seller CONFIDENTIAL © 2008 Calavo Growers, Inc. 3
Slide 4: Company Overview
Company Overview 84-year history — Founded in 1924 as a co-operative of California avocado growers — Non-traditional path to the public market in 2002 Expanding branded product portfolio — Avocados — Papayas — Tomatoes — Mushrooms — Pineapples — Guacamole Diversified growing business with flexible i
Slide 5: Grower and Customer List
Grower and Customer List Calavo adds value and draws revenue from both growers and customers Growers Customers CONFIDENTIAL © 2008 Calavo Growers, Inc. 5
Slide 6: Key Investment Highlights
Key Investment Highlights · The leader in the growing avocado category · Valuable supplier to large national customer base · Proven business model expanding past California fresh avocados · Beneficiary of large macro trends · Embedded opportunities for long-term growth through continued internal exp
Slide 7: An Accelerating Timeline
An Accelerating Timeline Calavo de Chile 2008 Papaya Acquisition Maui Pineapples 2008 2007 Calavo Mushrooms 2007 Beltran Tomato Limoneira Relationship Investment 2007 2005 Avocado co-operative Maui Fresh UHP guacamole Acquisition 1998 2003 1965 Public 2002 Calavo de Mexico 1998 1924 CONFIDENTIAL © 2
Slide 8: The First Name in Avocados
The First Name in Avocados Calavo is the leader in the growing avocado industry Important to the seller — Avocados are a high profit item for stores — Calavo provides consistent supply and quality — Unique offering of value-added programs — Ripe program reduces shrink Important to the growers —Relia
Slide 9: Added Fees for Value-added Services
Added Fees for Value-added Services Increasing our profit and value to our customer base Value-added services —Consistent avocado ripeness —Bagging —Special packing CONFIDENTIAL © 2008 Calavo Growers, Inc. 9
Slide 10: Advantages of Business Model
Advantages of Business Model · No direct crop risk · No conflict of interest marketing customers crops · Little competitive focus on providing a global avocado source from larger competitors · Smaller competitors do not have the infrastructure, financial capabilities or historical reputation to offe
Slide 11: Fresh Products Division Sales First Nine Months 2008
Fresh Products Division Sales First 9 Months 2008 Diversifying avocado sourcing — New sources: Calavo de Mexico, Imported avocados Calavo de Chile, Peru 48.1% Diversified — 9 months 2008 48% of fresh sales California 17.8% avocad os — 9 months 2006 27% of fresh sales 34.0% Sales First 9 Months 2006
Slide 12: Agricola BelHer Case Study
Agricola BelHer Case Study Agreement announced in August 2007 — Loan from CVGW to tomato grower — Calavo makes a small profit on loan — Capital used by grower to increase quality and volume — Calavo received a long-term marketing agreement 2008 seasons results — Grower: Higher volume and a premium s
Slide 13: Processed Products Division
Processed Products Division Divisional Breakdown — Food Service — Retail and Club Overview — All-natural product — Leverage brand, sourcing and relationships — High gross margin business 2008 — A focus on purging lower margin business CONFIDENTIAL © 2008 Calavo Growers, Inc. 14
Slide 14: Benefiting from Macro Trends
Benefiting from Macro Trends The avocado and produce industry are nicely positioned Avocado consumption in the U.S.A. — 490 million pounds in 1999/2000 — Roughly 1 billion pounds today — CAC estimates 1.2 — 1.5 billion pounds by 2013 · Increasing U.S. Hispanic population · Increasing awareness of th
Slide 15: Focused on Growth
Focused on Growth We Believe $1 Billion in Revenue is Achievable Avocados — Increase sourcing (Mexico, Chile, Peru) — Leverage and increase distribution (Canada, Europe) Diversified Products — Continue to build market-share in current categories • Year-round tomato supply • Larger papaya and pineapp
Slide 16: Financial Highlights
Financial Highlights Dollars in millions except 10-31-07 10-31-06 10-31-05 for per share data Net Sales $302.9 $273.6 $258.9 Gross Margin 31.8 29.1 21.7 SG&A 19.8 19.8 18.6 Net Income 7.3 5.8 3.3 EPS $0.51 $0.40 $0.24 CONFIDENTIAL © 2008 Calavo Growers, Inc. 17
Slide 17: First Nine Months 2008
First Nine Months 2008 Dollars in millions except 7-31-08 7-31-07 7-31-06 for per share data Net Sales $267.9 $217.7 $197.0 Gross Margin 21.0 24.7 22.3 SG&A 14.8 14.2 14.8 Net Income 3.7 6.1 4.5 EPS $0.26 $0.43 $0.31 CONFIDENTIAL © 2008 Calavo Growers, Inc. 18
Slide 18: Portfolio of Assets
Portfolio of Assets Calavo’s owned facilities — 53K sq ft Santa Paula packinghouse — 60K sq ft Temecula packinghouse — 70K sq ft 5 acre Santa Paula VAD — 90K sq ft Uruapan processing facility — 50K sq ft Uruapan packinghouse — 725 acres and facility in Hawaii Investment in the Limoneira Company (LMN
Slide 19: Building the Future on the Past
Building the Future on the Past Focused on leveraging the opportunity resulting from 84-years of investment CONFIDENTIAL © 2008 Calavo Growers, Inc. 21
Slide 20: Historical U.S.A. Avocado Consumption and Supply Data
Historical U.S.A. Avocado Consumption and Supply Data Data Provided by California Avocado Commission, *,**estimates CONFIDENTIAL © 2008 Calavo Growers, Inc. 23
Slide 21: An International Company
An International Company Calavo Source and Supply Locations Avocados Processed guacamole — Sourcing from U.S.A., Mexico, — Sourcing from Mexico Chile, Peru — Supplying to U.S.A., Canada, — Supplying to U.S.A., Canada, Asia, Europe, Australia, New Asia, Europe Zealand Tomatoes Pineapples — Sourcing f
Slide 22: Fresh Division Revenue Structures
Fresh Division Revenue Structures Different method of payment in each category — California avocados — set marketing and packing fee — Mexican avocados — buy and sell — Chilean avocados — commission on sale price — Tomatoes — commission on sale price — Pineapples — set fee per box sold — Mushrooms —
Slide 23: ProRipe VIP Operation
ProRipe VIP Operation CONFIDENTIAL © 2008 Calavo Growers, Inc. 26
Slide 24: Distribution Structure
Distribution Structure Calavo can supply the complete U.S.A. and Canadian marketplace by efficiently using current infrastructure CONFIDENTIAL © 2008 Calavo Growers, Inc. 27
Slide 25: Calavo Growers, Inc. contact
CALAVO GROWERS, INC. NASDAQ: CVGW For follow-up needs, contact Michael Lippold (805) 421-5032 mikel@calavo.com . CONFIDENTIAL © 2008 Calavo Growers, Inc.
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