John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (February 2016)
63 slides from John B. Sanfilippo & Son's investor presentation, Feb 10, 2016
Slide 1: JBSS Investor Presentation February 2016
JBSS INVESTOR PRESENTATION February 2016 NASDAQ - JBSS Exhibit 99.1
Slide 2: 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 3: Who is JBSS?
One of the largest nut processors in the world with fiscal 2015 annual sales in excess of $887 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 channel – fr
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type % of total gross sales * other consists of trail and snack mixes which include nut products 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 2015 23.
Slide 5: Consistent success over past fiscal years
Consistent success over past 4 fiscal years Diluted EPS improvement of 65% from FY12 to FY15 Net Sales increased by 27% over FY14 to a record $887.2 million $ $
Slide 6: Continuing to Create Shareholder Value
Continuing to Create Shareholder Value Outperformed the Russell 2000 Index by over 83%! JBSS Russell 2000 Stock Price $63.53 02/03/2016 Stock Price $36.51 02/04/2015
Slide 7: 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 Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 8: FY 2015 Strategy Update
' | J 16 § & FY 2015 Strategy Update 2 6 Ss \? | ae JOHN B. SANFILIPPO & SON, INC.
Slide 9: Strategy: Create Value, Expand with Key Customers Globally
7855 Oe CREATE VALUE EXPAND WITH KEY GLOBALLY CUSTOMERS rut brands. rutcompany. vale aed nt and srack produ ‘ . exit, novation Leverage fs fetal partners . ee * Focus on consumers demanding quality snacks in interatonal, Commercial Ingrecent and Contact especially China, and in Manufacturing channel
Slide 10: FY 2015 Accomplishments: Fisher market share growth
Fisher recipe nuts grew market share +2.2 points* Fisher snack nuts market share growth in high franchise Midwest. Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth over FY 2014. FY 2015 Accomplishments *Source: IRI: Total Nut Category – Mul
Slide 11: FY 2015 Accomplishments: Fisher on Tmall in China
Launched Fisher Flagship Store on Tmall in China. Developed a Fisher stand-up bag product line for China. FY 2015 Accomplishments
Slide 12: FY 2015 Accomplishments: contract manufacturing and ingredients
Leveraged our innovation capabilities to launch 15 new items for our key contract manufacturing customers. Optimized Food Service and Industrial ingredient customer and product portfolios. Expanded Fisher brand awareness in the Commercial Ingredients channel. FY 2015 Accomplishments
Slide 13: Nut Category Review
‘ee Nut Category Review 2 6 Ss \? | ae
Slide 14: Steady Increase in Nut Retail Prices Since FY 2011
Steady Increase in Nut Retail Prices Since FY 2011 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to CY 15 Year 52 weeks Ending 12/27/15 +29% Since FY 2011
Slide 15: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 4 Years Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to CY 15 Year 52 weeks Ending 12/27/15
Slide 16: Steady Category Growth
Steady Category Growth Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to CY 15 Year 52 weeks Ending 12/27/15
Slide 17: JBSS Sales Channel Updates
0°50 JBSS Sales Channel Updates 6 ® m ihe ae The Global Source for Nuts%,
Slide 18: Business Channel Diversification
$529 Fiscal 2015 Net Sales $887 Million Business Channel Diversification (Millions of $) $36 $207 $115
Slide 19: FY 2015 Consumer Channel
Fiscal 2015 Net Sales $529 Million Consumer 60% vs. FY ‘14 FY 2015 Consumer Channel 16.7%
Slide 20: FY 2015 Commercial Ingredients Channel
Fiscal 2015 Net Sales $207 Million FY 2015 Commercial Ingredients Channel vs. FY ‘14
Slide 21: FY 2015 Contract Packaging Channel
FY 2015 Contract Packaging Channel Fiscal 2015 Net Sales $115 Million
Slide 22: FY 2015 Export Channel
FY 2015 Export Channel Fiscal 2015 Net Sales $36 Million
Slide 23: FY 2015 Financial Milestones
FY 2015 Financial Milestones
Slide 24: JBSS Stockholders' Equity FYs 1991-2015
JBSS Stockholders’ Equity FYs 1991- 2015 In millions of $
Slide 25: JBSS Net Sales FYs 1991-2015
JBSS Net Sales FYs 1991- 2015 Increased pound volume and prices SKU Rat., De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $887 million In millions of $
Slide 26: JBSS Total Outstanding Debt FYs 1991-2015
JBSS Total Outstanding Debt FYs 1991- 2015 In millions of $
Slide 27: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2015
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
Reconciliation of Net Income (Loss) to EBITDA (In $,000's) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 NET INCOME (LOSS) 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 INTEREST EXPENSE 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364
Slide 30: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 31: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 32: Peanut and Tree Nut Spot Market Prices vs. JBSS
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % $7.50 $7.00 $6.50 $6.00 $0.00 The Global Source for Nutse =
Slide 33: Highlights: Q2 2016 vs. Q2 2015
Highlights: Q2 2016 vs. Q2 2015 (in $000’s except EPS) $ CHANGE % CHANGE NET SALES $27,629 11.0% SALES VOLUME 6,549 9.4% GROSS PROFIT $7,768 20.9% NET INCOME $3,647 43.4% EARNINGS PER SHARE $0.32 42.6% OPERATING CASH FLOWS $43,919 115.7% TOTAL DEBT $18,901 28.3%
Slide 34: Highlights: Q2 YTD 2016 vs. Q2 YTD 2015
Highlights: Q2 YTD 2016 vs. Q2 YTD 2015 (in $000’s except EPS) $ CHANGE % CHANGE NET SALES $48,369 10.6% SALES VOLUME 6,500 5.0% GROSS PROFIT $10,289 15.1% NET INCOME $5,722 40.0% EARNINGS PER SHARE $0.49 38.3% OPERATING CASH FLOWS $43,919 115.7% TOTAL DEBT $18,901 28.3%
Slide 35: FY 2015 Brand Marketing Overview
FY 2015 Brand Marketing Overview
Slide 36: Recipe Nuts, Snack Nuts, Grow Brands
Recipe Nuts Snack Nuts Grow Brands
Slide 37: Strong Growth on the Fisher brand in FY15
Strong Growth on the Fisher brand in FY15 Total Fisher Brand Growth FY15 vs. FY14 +8% +14% Recipe Nuts Snack Nuts POUND SALES DOLLAR SALES Source: JBSS shipment data
Slide 38: Recipe Nuts
Recipe Nuts
Slide 39: Fisher Recipe has Grown Market Share
Fisher Recipe has Grown Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY TD 26 wks Ending 12/27/15
Slide 40: Strong sustained growth on Fisher Recipe Nuts
Strong sustained growth on Fisher Recipe Nuts for 4+ Fiscal Years Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY TD 26 wks Ending 12/27/15
Slide 41: "No Preservatives" Message Key Driver for Share Growth
“No Preservatives” Message Key Driver for Share Growth
Slide 42: Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 43: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Website Social Media Public Relations Food Network Email
Slide 44: Building Brand Presence "Away From Home"
Building Brand Presence and Equity “Away From Home” Merchandised Foodservice Location
Slide 45: Snack Nuts
Snack Nuts
Slide 46: Fisher Snack Nut Strategy Focuses on Midwest Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts
Slide 47: Growing our Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Snack Nuts Source: IRI: Total Snack Nut Category – Core Geography MULO (Chicago, Milwaukee, Minneapolis, and St. Louis – FY TD 26 wks Ending 12/27/15
Slide 48: Driving Results on our Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business Source: IRI: Total Snack Nut Category – Core Geography MULO (Chicago, Milwaukee, Minneapolis, and St. Louis – Calendar 2015 Ending 12/27/15
Slide 49: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts
Slide 50: A Snack Bite combining Consumer favorites
A Snack Bite combining Consumer favorites
Slide 51: Introducing Fisher Nut Exactly Great
Introducing Fisher Nut Exactly 4 Great Popcorn Varieties for Grocery Channel Unique Varieties for the Club Channel
Slide 52: Meeting needs of the Snack Consumer
Meeting needs of the Snack Consumer New Segment: Lighter than nuts, more substantial than popcorn Indulgent Healthier Snacking Yogurt/Veggies Popcorn Nuts Chips Candy Bars
Slide 53: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too
Slide 54: Marketing Support Designed to Build Consumer Awareness
Marketing Support is Designed to Build Consumer Awareness and Drive Trial Social Media/ Digital In-Store PR Media Outreach Blogger Outreach Trial & Awareness Vehicles 54
Slide 55: Orchard Valley Harvest
Orchard Valley Ocha Nalleg Oncherd Valley Onc Nelog Onchayd Vlog Pure and Simple Goodness
Slide 56: Orchard Valley Harvest is On-Trend with Today's Consumer
Our Orchard Valley Harvest Brand is On-Trend with Today’s Consumer Pure & Simple Goodness Supports a healthy lifestyle Close to the earth
Slide 57: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness
Slide 58: Strong Growth on Orchard Valley Harvest
Strong Growth on Orchard Valley Harvest Orchard Valley Harvest Growth FY15 vs. FY14 +34% +48% POUND SALES DOLLAR SALES Source: JBSS shipment data
Slide 59: Strong Distribution Gains
Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 YTD Ending 12/27/15 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI Strong Distribution Gains
Slide 60: Snacking accounts for over 53% of eating occasions
Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day Grab ‘n Go Mini’s Multi-Packs We continue to expand our portfolio to add
Slide 61: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations University Setting Sodexho B&I Location Michigan Ski Resort
Slide 62: Impactful Marketing Support
Impactful Marketing Support PR / Blogger Outreach / Trial & Awareness In-Store Merchandising / New Packaging Digital Initiatives Website / Ibotta
Slide 63: Thank You!
Thank You!
Sanfilippo John B & SON — Investor Presentation (February 2016) on 6ix