John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Investor Presentation (August 2016)
60 slides from John B. Sanfilippo & Son's investor presentation, August 2016
Slide 1: JBSS Investor Presentation August 2016
JBSS INVESTOR PRESENTATION August 2016 NASDAQ - JBSS 1
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: Who is JBSS?
Who is JBSS? • One of the largest nut processors in the world with fiscal 2016 annual net sales in excess of $952 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 maj
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type Fiscal Year 2016 Full assortment of nut types 5% PEANUTS 14% Full variety of value-added products 12% PECANS 13% CASHEWS & MIXED NUTS Wide variety of dried fruit and other 23% WALNUTS ALMONDS snack products 23% TRAIL & SNACK MIXES 10% Customized, unique produ
Slide 5: Consistent success over past 5 fiscal years
Consistent success over past 5 fiscal years Diluted EPS FY 12-FY 16 Net Sales FY 12 - FY 16 $3.00 $1,000,000 $2.50 $2.68 $952,059,000 $2.61 $950,000 $2.36 $2.00 $900,000 $1.98 $850,000 $1.50 $1.58 $800,000 $1.00 $750,000 $0.50 $700,000 $650,000 $0.00 FY 12 FY 13 FY 14 FY 15 FY 16 FY FY FY FY FY 12 1
Slide 6: Core Values
Vision Core Values Integrity To be the global source for nuts, People Investment committed to quality, Customer Driven Quality expertise and innovation that Innovation Execution delivers an unmatched Continuous Improvement Safety experience to our customer Resource Conservation and consumer 6
Slide 7: FY 2016 Strategy Update
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Slide 8: Building Our Future
JOHN B. SANFILIPPO & SON, INC. 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, Isunching offering supp
Slide 9: Expand Consumer Reach
Expand Consumer Reach Grow distribution so more consumers can purchase JBSS products Develop sales in Alternative Channels Launch innovative products, sizes and marketing programs to build consumer demand 9
Slide 10: FY 2016 Accomplishments
FY 2016 Accomplishments Fisher recipe nuts increased market share by +2.9 points*. Fisher snack nuts market share grew +0.6 point in the high franchise Midwest. Orchard Valley Harvest expanded distribution over FY 2015. 10 *Source: IRI: Total Nut Category – Multi Outlet Geography Fiscal Year E
Slide 11: FY 2016 Accomplishments
FY 2016 Accomplishments Leveraged our innovation capabilities to launch 30 new items for our key contract manufacturing customers. Optimized Food Service and Industrial ingredient customer and product portfolios. Expanded Fisher brand awareness and distribution in the Commercial Ingredients ch
Slide 12: Nut Category Review
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Slide 13: Steady Increase in Nut Retail Prices Since FY 2011
Steady Increase in Nut Retail Prices Since FY 2011 + 31% Price Per Pound since FY 2011 $5.85 $6.07 $5.54 $5.62 $5.24 $4.63 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 13 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26
Slide 14: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 5 Years % Increase in Price Per Pound Since FY11 48.0% 43.0% 41.0% 39.0% 35.0% 23.0% 15.0% 14.0% ALMOND PISTACHIO MIXED NUTS CASHEW WALNUT MACADAMIA PEANUT PECAN NUT 14 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: t
Slide 15: Steady Category $ Growth
Steady Category $ Growth Category Pound Sales (M) Category $ Sales (M) 6,261 1,051 5,908 6,120 1,046 5,659 5,305 1,030 1,031 4,771 1,022 1,014 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 15 Source: IRI: Total Nut Category – Multi Outlet Geography T
Slide 16: JBSS Sales Channel Updates
JBSS Sales Channel Updates 16
Slide 17: Business Channel Diversification
Business Channel Diversification Export Commercial 3% Ingredients $31 23% $223 $561 $137 Contract Pkg. 15% Consumer 59% (Millions of $) Fiscal 2016 Net Sales $952 Million 17
Slide 18: FY 2016 Consumer Channel
FY 2016 Consumer Channel Consumer 59% 6.1% vs. FY 15 Fiscal 2016 Net Sales $561 Million 18
Slide 19: FY 2016 Commercial Ingredients Channel
FY 2016 Commercial Ingredients Channel Commercial Ingredients 23% 7.3% vs. FY ‘15 Fiscal 2016 Net Sales $223 Million 19
Slide 20: FY 2016 Contract Packaging Channel
FY 2016 Contract Packaging Channel Contract Packaging 15% 19.4% vs. FY 15 Fiscal 2016 Net Sales $137 Million 20
Slide 21: FY 2016 Export Channel
FY 2016 Export Channel Export 3% -13.1% vs. FY ‘15 Over FY’12 Fiscal 2016 Net Sales $31 Million 21
Slide 22: FY 2016 Financial Milestones
FY 2016 Financial Milestones 22
Slide 23: JBSS Stockholders' Equity FYs 1991-2016
$100 $125 $150 $175 $200 $225 $250 $275 $0 $25 $50 $75 1991 In millions of $ 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 JBSS Stockholders’ Equity FYs 1991- 2016 2015 2016 23
Slide 24: JBSS Net Sales FYs 1991-2016
JBSS Net Sales FYs 1991- 2016 In millions of $ $1,200 Increased Pound volume and Prices De-emphasized $1,000 Industrial Sales, $952 Lower Prices million $800 Low Carb Diet Run Up $600 $400 $200 $0 1991 1992 1993 1994 1995 1996 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 201
Slide 25: JBSS Total Outstanding Debt FYs 1991-2016
$80 $20 $40 $60 $100 $120 $140 $160 $0 In millions of $ 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JBSS Total Outstanding Debt FYs 1991- 2016 25
Slide 26: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2016 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 26
Slide 27: 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 28: Reconciliation of Net Income (Loss) to EBITDA
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 (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 INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966
Slide 29: EBITDA
EBITDA* (in $ thousands) $75,000 $70,000 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 -$5,000 -$10,000 -$15,000 * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP m
Slide 30: 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 % $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-01 Jun-00 Feb-01 Feb-02 Oct-00 Oc
Slide 31: FY 2016 Brand Marketing Overview
FY 2016 Brand Marketing Overview 31
Slide 32: Grow Brands
Grow Brands Recipe Nuts Snack Nuts 32
Slide 33: Recipe Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts 33
Slide 34: Strong Growth on the Fisher Recipe in FY16
Strong Growth on the Fisher Recipe in FY 16 Total Fisher Recipe Brand Growth FY 16 vs. FY 15 +12% +6% Recipe Nuts POUND SALES DOLLAR NET SALES 34 Source: JBSS shipment data
Slide 35: Fisher Recipe has Grown Market Share
Fisher Recipe has Grown Market Share Fisher Recipe Dollar Share Total US MULO 24.4% 21.5% 18.3% 19.2% 16.5% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 35 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16
Slide 36: Strong, Sustained Growth for Fisher Recipe
Strong, Sustained Growth for Fisher Recipe for 4+ Fiscal Years Fisher Recipe Dollar Sales % Change vs. Previous Year Total US MULO 20.5% 15.4% 12.8% 9.7% 8.4% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16 36
Slide 37: "No Preservatives" Message Key Driver for Share Growth
“No Preservatives” Message Key Driver for Share Growth 37
Slide 38: Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship 38
Slide 39: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Public Relations Food Network Social Media Website Email 39
Slide 40: Building Brand Presence "Away From Home"
Building Brand Presence and Equity “Away From Home” Merchandised Foodservice Location 40
Slide 41: Snack Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts® 41
Slide 42: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts 42
Slide 43: Strong Growth on Fisher Snack Nuts in FY16
Strong Growth on the Fisher Recipe in FY 16 Total Fisher Recipe Brand Growth FY 16 vs. FY 15 +10% +5% Snack Nuts POUND SALES DOLLAR NET SALES 43 Source: JBSS shipment data
Slide 44: Growing Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Snack Nuts Fisher Snack Nuts Pound Share 4.5 (High Franchise Markets) 3.9 3.5 3.1 2.2 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 44 Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outle
Slide 45: Driving Results on Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business Pound Sales – Fisher Dry Roast Peanuts 952,709 777,756 652,052 535,681 FY 2013 FY 2014 FY 2015 FY 2016 Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography – FY 2016 Data En
Slide 46: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts 46
Slide 47: A Snack Bite Combining Consumer Favorites
A Snack Bite Combining Consumer Favorites 47
Slide 48: Fisher Nut Exactly
Fisher Nut Exactly 4 Great Popcorn Varieties for Grocery Channel Unique Varieties for the Club Channel 48
Slide 49: Meeting Needs of the Snack Consumer
Meeting Needs of the Snack Consumer Healthier Snacking Indulgent Yogurt/Veggies Popcorn Nuts Chips Candy Bars New Segment: Lighter than nuts, more substantial than popcorn 49
Slide 50: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too 50
Slide 51: Marketing Support to Build Consumer Awareness and Drive Trial
Marketing Support is Designed to Build Consumer Awareness and Drive Trial PR Media Outreach 51
Slide 52: Pure and Simple Goodness
Onchend “se Pure and Simple Goodness The Global Source for Nutse 52
Slide 53: Orchard Valley Harvest 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 53
Slide 54: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness 54
Slide 55: Strong Growth of Our Produce Brands
Strong Growth of Our Produce Brands Produce Brand Growth FY 16 vs. FY 15* +55% +41% POUND SALES DOLLAR NET SALES 55 * Includes Sunshine Country Source: JBSS shipment data
Slide 56: Strong Distribution Gains
Strong Distribution Gains Orchard Valley Harvest % ACV Distribution* 37 32 19 14 FY 13 FY 14 FY 15 FY 16 Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 Data Ending 6/26/16 56 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 57: Expanding Portfolio for On-the-Go Goodness
We continue to expand our portfolio to address consumer demand for on-the-go Goodness Grab ‘n Go Mini’s Snacking accounts for over 53% of all eating occasions in the U.S. Multi-Packs 38% of consumers snack several times per day Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartm
Slide 58: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations Michigan Ski Resort Sodexho B&I Location 58 University Setting
Slide 59: Impactful Marketing Support
Impactful Marketing Support Digital Initiatives Website / Ibotta 59
Slide 60: Thank You!
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