John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — East Coast IDEAS Investor Conference 2014
59 slides from John B. Sanfilippo & Son's conference presentation, Jun 4, 2014
Slide 1: East Coast IDEAS Investor Conference
June 5, 2014 East Coast IDEAS Investor Conference NASDAQ: JBSS Exhibit 99.1
Slide 2: Who is JBSS?
Who is JBSS? Who is JBSS? One of the largest nut processors in the world with fiscal 2013 annual net sales in excess of $730 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 ev
Slide 3: Recent Financial Results
Diluted EPS improved by over 600% Operating Cash Flow increased by nearly 400% Net Sales increased by 9% to a record $734 million Recent Financial Results Recent Financial Results FY 11 – FY 11 – FY 13 FY 13 $674,212 $734,334 $1.98 $1.58 $0.26 $35.8 M $15.9 M $7.2 M $700,575
Slide 4: Creating Shareholder Value
Stock Price $19.50 05/29/2013 Stock Price $25.71 05/28/2014 Outperformed the S&P 500 by over 100%! Creating Shareholder Value Creating Shareholder Value
Slide 5: Mission
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 stockholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of our
Slide 6: 1,300 people strong – 5 strategic locations
1,300 people strong – 1,300 people strong – 5 strategic locations 5 strategic locations Employees Employees Employees Employees Employees
Slide 7: State-of-the-Art World Class Facility in Elgin, IL
State-of-the-Art State-of-the-Art World Class Facility in Elgin, IL World Class Facility in Elgin, IL 1 Million Square Feet Comprehensive Allergen Prevention Programs Robust Quality Systems Organic Certification
Slide 8: Distribution Channel Diversification
Distribution Channel Diversification Distribution Channel Diversification (Millions of $; % change FY 13 v. FY 12 net sales in $) * Branded product sales were approximately 30% of total consumer sales * Commercial Ingredients 24% Contract Packaging 12% Consumer 59% Export 5% Fiscal 2013 Net Sales $7
Slide 9: Channel Diversification
Consumer Channel Branded business Private Brand business Commercial Ingredients Contract Packaging Export / International Channel Diversification Channel Diversification Branded business Private Brand business Recipe Nuts Snack Nuts
Slide 10: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type We Are Experts In Every Nut Type Full portfolio of nuts Broad variety of value-added products Wide assortment of other snack products Versatile and customized formulas Benefits % of total gross sales * Other consists of trail and snack mixes which include nut product
Slide 11: Integrated Nut Processor
Integrated Nut Processor Closest To The Source We are experts in our space
Slide 12: We Reach Consumers in 20+ In-Store Points
We Reach Consumers in 20+ In-Store Points We Reach Consumers in 20+ In-Store Points
Slide 13: Corporate Growth Strategies
Corporate Growth Strategies
Slide 14: Create Value / Expand Globally / Key Customers
CREATE VALUE EXPAND WITH KEY GLOBALLY CUSTOMERS Buid Fisher and Orchard Valley Harvest into leading + Build JBSS into a leading premium international snack * Be the preferred partner to bud profitable volume of nut brands rut company. Value-added nut and snack products Utiize consumer insights to de
Slide 15: Build Fisher and Orchard Valley Harvest brands
- ge sess BRANDS chard, Valley © Build Fisher and Orchard Valley Harvest into leading nut brands. HARVEST ® Utilize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category for our retail partners, ® Focus on consumer
Slide 16: We bring the joy of nuts to life
We bring the joy of nuts to life by staying fresh, every day and in every way.
Slide 17: Fisher Brand Delivering Growth
Fisher Brand Delivering Growth Fisher Brand Delivering Growth 24 m pounds +6% vs. YAGO Fiscal 2014 YTD through Q3 $117 m dollars +2% vs. YAGO
Slide 18: Innovation that meets the needs of the Consumer
Easier to scoop Easier to find in the pantry Freshness seal keeps nuts fresh Innovation that meets the needs of the Consumer… Innovation that meets the needs of the Consumer… Before….
Slide 19: …and the needs of the Retailer
…and the needs of the Retailer …and the needs of the Retailer Easier to Merchandise Reduced Case Count to reduce Inventory Shelf Ready Case to reduce Labor Before….
Slide 20: Chef Alex Guarnaschelli
Chef Alex Guarnaschelli Food Network recipe vignettes Simple Twist recipe ideas Fisher Recipe Contest National print campaign We found today’s top culinary chef to inspire consumers We found today’s top culinary chef to inspire consumers with simple, exciting usage ideas with simple, exciting usage
Slide 21: Extending our reach through Print and Digital Media
Extending our reach through Print and Digital Media Extending our reach through Print and Digital Media that reaches our Core and Millennial Consumer that reaches our Core and Millennial Consumer Email Newsletter Blogging Fisher Website & Mobile Site Facebook Twitter Pinterest
Slide 22: Winning In-Store with Displays!
Winning In-Store with Displays! Winning In-Store with Displays! Buy 2 Get Free!
Slide 23: Consumer and Retailer Programs driving Distribution Gains
Our Strong Consumer and Retailer Programs are Our Strong Consumer and Retailer Programs are driving Distribution Gains driving Distribution Gains Recipe Nuts
Slide 24: Fisher Recipe has grown Pound Sales for 25 straight Quad Weeks
Source: 4 wk ending 3/23/2014 in lbs Total US MULO IRI Database Fisher Recipe has grown Pound Sales for 25 straight Fisher Recipe has grown Pound Sales for 25 straight Quad Week Periods versus Prior Year Quad Week Periods versus Prior Year 15.3% 22.4% 20.7% 29.8% 29.8% 48.2% 21.9% 12.3% 15.9% 22.1%
Slide 25: Growing Fisher Snack by getting the Fundamentals Right
Growing Fisher Snack by getting the Growing Fisher Snack by getting the Fundamentals Right Fundamentals Right New Products Coupon Support In-Store Merchandising
Slide 26: Focusing on High Franchise Midwest
Focusing on High Franchise Midwest… Focusing on High Franchise Midwest…
Slide 27: Driving Distribution Gains
…driving Distribution Gains …driving Distribution Gains Snack Nuts
Slide 28: Pure & Simple Goodness
Pure & Simple Goodness Pure & Simple Goodness
Slide 29: Key consumer trends are driving purchase behavior
3 key consumer trends are driving consumer purchase behavior… Consumers want to know what’s Consumers want to know what’s in their food in their food Consumers want products that Consumers want products that fit their active lifestyle fit their active lifestyle Consumers are more proactive Consumers
Slide 30: Consumers want clean, simple ingredients
Consumers want clean, simple ingredients Source: The Hartman Group, Culture of Wellness 2013 Report WHEN SHOPPING WHEN SHOPPING I LOOK FOR FOOD I LOOK FOR FOOD AND BEVERAGES… AND BEVERAGES… 19% 28% 17% 26% 13% 25% 11% 25% That are minimally processed That contain only ingredients I recognize That ar
Slide 31: Consumers want healthy snacking options
Consumers want healthy snacking options Importance… % Source: Mintel – Healthy Snacking – July 2012 High protein Balanced nutrition High fiber Low calorie Low/no fat No trans fat Source: IRI State of the Snack Industry 2013 Snack Nuts and Trail Mixes provide Snack Nuts and Trail Mixes provide the ba
Slide 32: Consumers want portable snacking options
Consumers want portable snacking options Source: IRI State of the Snack Industry 2013 45% of consumers seek snacks 45% of consumers seek snacks that can be eaten on the go that can be eaten on the go Portable Portable Resealable Resealable Stays in Place Stays in Place Consumers are looking Consumer
Slide 33: Right brand to meet shoppers' needs
is the right brand to meet shoppers’ needs the brand consumers can trust for Pure & Simple Goodness a full assortment of healthy trail mixes and core snack nuts available in single serve and multi-packs for active lifestyles
Slide 34: Non-GMO Verified products reinforce consumers' trust
Non-GMO Verified products reinforce the consumers’ trust in the brand The Non-GMO Project offers North America’s only independent verification for products made according to rigorous best practices for GMO (genetically modified organisms) avoidance. 2 in 10 2 in 10 shoppers shoppers (1) The Hartman
Slide 35: Consumers have spoken… we're a huge hit!
All 7 items are in the top 50% (Last 26 wks in-market) Consumers have spoken… we’re a huge hit! Unit Velocity / Turns Source: IRI – Latest 26 weeks ending 4/20/14 National grocery retailer
Slide 36: Consumers are trying, liking and coming back for more
Consumers are trying, liking and coming back for more Source: IRI – Latest 42 weeks ending 4/20/14 National grocery retailer chain Unit Sales Per Pt of Distribution
Slide 37: Department Manager Feedback
“it fits within my merchandising plan” Department Mgr Feedback: Looks Great! Looks Great! Source: National grocery retailer, Produce department managers July 2013
Slide 38: Perimeter Display: on-display, on-shelf, on-the-go
Perimeter Display Keys to success: on-display, on-shelf… on-the-go!! Perimeter Display
Slide 39: As you can see, our game plan is working
As you can see, our game plan is working… (Bulk only) BREAUX Markets 11 stores Hawaii
Slide 40: Expanding Globally Makes Sense
Expanding Globally Makes Sense Expanding Globally Makes Sense Truly a “world of opportunity” to be a leader in health and wellness nut/fruit snacks in key international markets Favorable Consumer Dynamics Health and wellness Food safety/security Growing personal incomes/affluence Affinity for qualit
Slide 41: FY 2013 Accomplishments
Created a geographic-centric sales structure managing all product lines Upgraded the organization with experienced international professionals Partnered with leading international marketing brand firms for proprietary research on nut usage and consumption in Asia Invested in upgrading the Fisher Sna
Slide 42: Goal: Significantly Increase Export Sales by FY 2016
Goal: Significantly Increase Export Sales by FY 2016 Goal: Significantly Increase Export Sales by FY 2016 1. 1. Build JBSS brands in key markets Build JBSS brands in key markets 2. 2. Leverage brands to capture meaningful opportunities Leverage brands to capture meaningful opportunities 3. 3. Expand
Slide 43: How: Refresh & Upscale Fisher Brand Internationally
How: Refresh & Upscale Fisher Brand Internationally How: Refresh & Upscale Fisher Brand Internationally
Slide 44: Who: China Retailers
Who: China Retailers Who: China Retailers Tier-One Cities Channel focus Tibet Beijing Shanghai Guangzhou Modern retail E - commerce
Slide 45: Who: Latin America Retailers
Who: Latin America Retailers Who: Latin America Retailers Mexico Dominican Republic Panama Colombia Comercial Mexicana Walmart / Superama Fisher “World Table” Chedraui - Mafer El Rey - Panama Liverpool - Mexico El Dragon – Santo Domingo
Slide 46: Where: Europe, Middle East/Africa and Asia
Where: Europe, Middle East/Africa and Asia Where: Europe, Middle East/Africa and Asia • Scandinavia • U.A.E. • Saudi Arabia • South Korea • Malaysia • Japan • Philippines Carrefour - Riyadh Emart - Seoul Rustan – Manila Asia
Slide 47: FY 2013 Accomplishments
FY 2013 Accomplishments FY 2013 Accomplishments Significant innovative product launches Expanded our production capabilities Improved our consumer / shopper insights Recognized as best-in-class by receiving 3 Supplier of the Year Awards 3 Supplier of the Year Awards
Slide 48: Goal: Preferred Partner to Build Profitable Volume
Goal: Preferred Partner to Build Profitable Goal: Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Volume of Value-Added Nuts & Snacks
Slide 49: How: Commitment to Quality, Food Safety, Innovation & Procurement
Reduce Foreign Material Complaints Customer Quality Scorecards Stringent Corporate Food Safety Programs Raw Material Sourcing Product & Packaging Innovation How: Commitment to Quality, Food Safety, How: Commitment to Quality, Food Safety, Innovation & Procurement Expertise Innovation & Procurement E
Slide 50: How: Operational Excellence
Quality Balance Flow The 9 lean principles of process improvements How: Operational Excellence How: Operational Excellence Setup Reduction 5S Housekeeping Create Flow Visual Management Continuous Improvement Kanban Pull Systems Standard Work Competitive Costs Production Efficiencies Waste Reduction
Slide 51: FY 2013 / YTD 2014 Financial Milestones
FY 2013 / YTD 2014 FY 2013 / YTD 2014 Financial Milestones Financial Milestones
Slide 52: JBSS Total Outstanding Debt
JBSS JBSS Total Total Outstanding Outstanding Debt Debt FYs FYs – – Facility consolidation Improved operating performance $0 $20 $40 $60 $80 $100 $120 $140 $160
Slide 53: JBSS Net Sales FYs 1991 – Q3 2014
JBSS Net Sales FYs 1991 – JBSS Net Sales FYs 1991 – Q3 2014 Q3 2014 Item Rationalization, De-emphasized Commodity Sales, Lower Prices Low Carb Diet Run Up $0 $100 $200 $300 $400 $500 $600 $700 $800
Slide 54: JBSS Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales JBSS Total Outstanding Debt As % of Net Sales FY’s 1991 – FY’s 1991 – Note: FY 1997 reflects stub year 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0%
Slide 55: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA Reconciliation of Net Income (Loss) to EBITDA (In $ $000's) FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Last 4 Quarters NET INCOME (LOSS) 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122
Slide 56: EBITDA
EBITDA* EBITDA* -$ 15,000 -$ 10,000 -$ 5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 57: EBITDA Margin (% of Net Sales)
EBITDA * Margin (% of Net Sales) EBITDA * Margin (% of Net Sales) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 58: Market prices: Nut Spot Prices vs. JBSS Gross Margins
Market prices from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Nut Spot Mkt. Prices vs. JBSS Rolling 4 QTR Gross Margins Rolling 4 QTR Gross Margins
Slide 59: Thank You
THANK YOU
Sanfilippo John B & SON — East Coast IDEAS Investor Conference 2014 on 6ix