John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Investor Presentation (November 2022)
42 slides from John B. Sanfilippo & Son's investor presentation, November 2022
Slide 1: FY2022 Investor Update
FY2022 Investor Update NASDAQ: JBSS © 2022 John B. Sanfilippo & Son, Inc. | Proprietary and Confidential
Slide 2: Forward-Looking Statements
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
Slide 3: JBSS Corporate Overview
JBSS Corporate Overview • One of the largest nut processors in the world with net sales of approximately $956 million (FY2022) • 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 ever
Slide 4: We are THE Nut Experts
We are THE Nut Experts SALES BY NUT TYPE % of total gross sales 6.4% 18.0% PEANUTS ✓ Full portfolio of nut types PECANS ✓ Variety of value-added products 26.9% CASHEWS & MIXED NUTS ✓ Compliment of dried fruit and 10.1% snack products WALNUTS ✓ Customized, unique product ALMONDS formulas TRAIL & SNAC
Slide 5: Strong Financial Performance
Strong Financial Performance Pounds Sold1 +5.4% CAGR Margins2 +2.8% CAGR in millions Operating Income Gross Profit 314.2 +3.9% CAGR 20.9% 221.8 16.3% 9.1% 5.7% FY13 FY22 FY13 FY22 Diluted EPS2 Avg. Yearly Stock Price $5.33 $83.07 +11.6% CAGR +18.4% CAGR $1.98 $18.14 FY13 FY22 FY13 FY22 5 Source: 1JB
Slide 6: Pounds Sold vs. Net Sales per Pound Sold
Pounds Sold vs. Net Sales per Pound Sold 350.0 $4.00 $3.50 $3.52 $3.04 $3.31 $3.30 $2.92 $3.50 300.0 $3.24 $3.26 $3.21 $3.04 $3.00 250.0 $2.50 200.0 $2.00 150.0 314.2 289.4 293.9 270.1 260.1 268.9 272.8 $1.50 240.4 253.5 221.8 100.0 $1.00 50.0 $0.50 - $- FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 7: EBITDA Trends
EBITDA Trends EBITDA EBITDA PER POUND SOLD in $ thousands in pennies per pound 120,000 $0.35 $0.30 100,000 $0.25 80,000 $0.20 60,000 $0.15 40,000 $0.10 20,000 $0.05 0 $0.00 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Source: JBSS Form10-K; JBSS
Slide 8: Returning Cash to Shareholders and Investing in the Future
Returning Cash to Shareholders and Investing in the Future DIVIDENDS PAID BY CALENDAR YEAR* 6 8.8% 6.3% 10.0% 6.1% 5 7.0% 8.0% 4 4.3% 5.2% 6.0% 3 4.1% 3.9% 3.8% $4.80 $4.40 2.9% $5.00 4.0% 2 $2.85 $2.00 $2.00 $1.50 1 $2.00 2.0% $1.50 $1.50 $0.50 $0.55 $0.60 $0.65 $0.70 $0.75 0 0.0% 2013 2014 2015 20
Slide 9: Strong Foundation for Future Success
Strong Foundation for Future Success NET WORKING CAPITAL DEBT TO EQUITY in millions 34.5 $160,402 $114,992 39.5% INCREASE 18.4 46.7% DECREASE FY13 FY22 FY13 FY22 DEBT TO EBITDA RETURN ON EQUITY 1.31 22.2% 119.3% INCREASE 10.1% 0.50 61.5% DECREASE FY13 FY22 FY13 FY22 9 Source: JBSS Form 10-K
Slide 10: Our Long-Term Growth Pillars
Our Long-Term Growth Pillars Grow with our top Diversify our portfolio Transform our Brands customers through into high-growth to connect with today’s value-added snacking segments consumer Private Label programs Expand capacity Build & buy into high Reposition brands with growth snacking spaces pur
Slide 11: ESG Focused on Community, Sustainability & DEI
ESG Focused on Community, Sustainability & DEI Fight food insecurity Work with farmers & nut boards to Support the education of a new reduce water usage generation of growers Focus on our environmental impact Inclusive & diverse ESG Work to make our associate base packaging more sustainable 11
Slide 12: FY2022 Results
FY2022 Results SANFILIPPO & SON, INC. JOHN B
Slide 13: JBSS New Mission & What Matters Most
JBSS New Mission & What Matters Most We’re nuts about creating real food that brings joy, nourishes people and protects the planet. 13
Slide 14: Expand Consumer Reach Accomplishments
Expand Consumer Reach Accomplishments • Continued to accelerate our E-commerce growth, outpacing the grocery average • Increased distribution with Fisher Snack by meeting consumers’ needs with value-added, upsized packs • Expanded core business with new pack sizes to unlock new channels and price po
Slide 15: Create Value with Key Customer Accomplishments
Create Value with Key Customer Accomplishments • Exclusive peanut butter supplier to largest broadline food service distributor in the industry • Expanded presence in the Non-Commercial segment by securing supply agreements with 2 additional key players • Grew core nuts and trail mix assortments at
Slide 16: Grow JBSS Brands Accomplishment
Grow JBSS Brands Accomplishment • All brands grew shipment volume vs. fiscal 2021 • Grew Fisher Snack ‘Oven Roast, Never Fried’ for the fourth year in a row • Orchard Valley Harvest was back to growth driven by gains in alternative channels, club, and grocery performance • Continue to be the branded
Slide 17: Net Sales by Distribution Channel
Net Sales by Distribution Channel FY13 FY13 FY22 5% 9% 12% 13% $734M $956M 24% Total Net Sales Total Net Sales 59% 78% ◼ Consumer ◼ Commercial Ingredients ◼ Contract Packaging ◼ Export 17 Source: JBSS Form 10-K
Slide 18: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % $8.00 24.0% $7.50 22.5% $7.00 21.0% $6.50 19.5% $6.00 18.0% $5.50 16.5% $5.00 15.0% $4.50 13.5% $4.00 12.0% $3.50 10.5% $3.00 9.0% $2.50 7.5% $2.00 6.0% $1.50 4.5% $1.00 3.0% $0.50 1.5% $0.00 0.0% Jun-17 Mar-12 Mar-13 Mar-
Slide 19: Retail Nut Category 5 Year Trends
Retail Nut Category 5 Year Trends Price per Pound1 % Increase (Decrease) in Price $6.24 per Pound vs. Last Year2 1.1% 3.5% $6.14 $6.14 $6.15 INCREASE 0.9% 0.8% 0.7% 0.6% $6.03 0.4% 0.2% FY 18 FY 19 FY 20 FY 21 FY 22 CASHEW PECAN WALNUT PEANUT MIXED NUT PISTACHIO ALMOND Category Pound Sales3 Category
Slide 20: Consumer Channel
Consumer Channel $750M Key Drivers Net Sales Private Label E-Commerce Grocery Growth Growth Growth +9.3% Snack Nuts & Fisher Recipe & Fisher Snack Trail Mixes Squirrel versus FY21 20 Source: JBSS FY22 Form 10-K
Slide 21: Commercial Ingredients Channel
Commercial Ingredients Channel $121M Key Drivers Net Sales Post-Covid Return to Daily Activities +29.8% Dining Return to Return to Travel & Out Office School Hospitality versus FY21 21 Source: JBSS FY22 Form 10-K
Slide 22: Contract Manufacturing
Contract Manufacturing $85M Key Drivers Net Sales New Customer Post-COVID increase in c-store sales +7.4% versus FY21 22 Source: JBSS FY22 Form 10-K
Slide 23: FY2022 Brand Marketing Review
FY2022 Brand Marketing Review
Slide 24: Grow JBSS Brands
Grow JBSS Brands recipe nuts nuts hchard Ve T d ou NUTS SINCE L
Slide 25: Our priority is to . . .
Our priority is to . . . Meet consumers With the products & From the brands where they are content they want they know & love Online and Health & Wellness Brands they can trust Brick & Mortar Impactful In-Store Easy & Delightful Inspiring new usage Merchandising Experiences Beyond Traditional Suppor
Slide 26: Meet consumers where they are
Meet consumers With the products & From the brands where they are content they want they know & love 26
Slide 27: Fisher Recipe results
Fisher Recipe was lapping Covid- related cooking & baking increases, Fisher Recipe but managed to keep pound sales Dollar Share – Total US MULO2 30.0% 28.4% 27.8% $760 flat while slightly declining net sales. 25.0% $750 20.6% $740 20.0% DOLLAR NET SALES1 POUND SALES1 15.7% 15.4% $730 15.0% +0.1% $72
Slide 28: Fisher Recipe Distribution
Fisher Recipe Distribution 28 Retail Distribution Map as of 8/1/22
Slide 29: Inspiring all kitchen creators to do more!
Inspiring all kitchen creators to do more! E-commerce acceleration Value-Added Inspiring Content & & impactful in-store events Products & Packs Expert Partnerships 29
Slide 30: Fisher Snack results
Fisher Snack saw an increase in pounds and net sales driven by core nut velocity and Fisher Snack Oven Roast Never Fried distribution gains in Dollar Share – Total US MULO2 Mass and Grocery, specifically behind the 0.60% $4.4 0.52% 0.50% $4.3 larger value sizes. 0.50% 0.42% 0.46% $4.2 0.40% $4.1 0.3
Slide 31: Fisher Snack Distribution
Fisher Snack Distribution 31 Retail Distribution Map as of 8/1/22
Slide 32: Taking Oven Roasted Never Fried to New Heights
Taking Oven Roasted Never Fried to New Heights E-commerce acceleration & Clean ingredient line in Impactful, simple adjacent category placement value sized packs communication 32
Slide 33: Orchard Valley Harvest results
Orchard Valley Harvest was back to growth in net sales and pounds driven by increased distribution in alternative channels and Orchard Valley Harvest Dollar Share – Total US MULO2 updated promotional strategy and grocery. 3.00% $2.1 2.69% We also saw growth in a key retailer who was 2.50% $2.0 2.25%
Slide 34: Orchard Valley Harvest Distribution
Orchard Valley Harvest Distribution Legend Foodservice Distribution Micro-Market/Vending Distribution Pins represent approx. 20,000 points of distribution 34 Combined Channel Distribution Map as of 8/1/22
Slide 35: Bringing the world Pure & Simple Goodness
Bringing the world Pure & Simple Goodness E-commerce acceleration Plant-based snacking with Product placement on & adjacent category pure & simple ingredients Influencer’s social media placement 35
Slide 36: OVH Will Drive Category by Recruiting Gen Z & Millennials
OVH WILL DRIVE CATEGORY BY RECRUITING, CONNECTING WITH & INSPIRING THE GEN Z & MILLENNIAL GROWTH TARGETS Business Drive Gen Z & Millennial category penetration of Trail Mix & Objective Snacks with a compelling, irresistible, purpose-led brand To be the real food, healthy snacking brand that makes go
Slide 37: Squirrel and Southern Style Nuts results
Squirrel grew in net sales and pounds by Southern Style Nuts grew net sales and focusing on E-commerce, alternative pounds through strong promotional channels, and a major club customer. support and E-commerce. DOLLAR NET SALES1 POUND SALES1 DOLLAR NET SALES1 POUND SALES1 42.4% 44.8% 5.8% 4.4% FY22
Slide 38: Southern Style Nuts & Squirrel Brand Distribution
Southern Style Nuts & Squirrel Brand Distribution 38 Combined Channel Distribution Map as of 8/1/22
Slide 39: Introducing our Brands to more people in more places
Introducing our Brands to more people in more places Bring our brand stories to Accelerate innovation in E-comm Support life with breakthrough Pack & Product campaigns 39
Slide 40: Thank You
THANK YOU SANFILIPPO & SON, INC. JOHN B
Slide 41: Appendix
APPENDIX SANFILIPPO & SON, INC. JOHN B.
Slide 42: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 (in $,000's) NET INCOME (LOSS) 21,760 26,287 29,305 30,395 36,125 32,500 39,466 54,110 59,741 61,787 INTEREST EXPENSE 4,754 4,354 3,966 3,492 2,910 3,463 3,060 2,005 1,441 1,921 INCOME TAX EXPENSE (BENEFIT) 13,5
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