John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (November 2006)
51 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Nov 6, 2006
Slide 1: Annual Stockholders Meeting November 2006
Annual Stockholders Meeting November 2006
Slide 2: Forward Looking Statements
Forward Looking Statements: Some of the statements in this presentation 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 markets
Slide 3: Vision / Mission / Core Values
Vision / Mission / Core Values • Series of meetings with JBSS staff – 100’s of people – Across all disciplines
Slide 4: Vision
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer.
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 shareholders. We will accomplish this through our commitment to the creation of a dynamic infrastructure that maximizes the
Slide 6: Core Values
Core Values Integrity People Investment Customer Driven Innovation Execution Continuous Improvement Safety
Slide 7: Driving Strategies
Driving Strategies • Strategy: Lead the industry in innovative nut solutions that satisfy snacking, ingredient and processing needs. • Strategy: Lead the industry in technological advancements, innovations and supply chain initiatives that focus on setting the standards for nut processing, while cre
Slide 8: Driving Strategies
Driving Strategies • Strategy: Position JBSS brands and products as critical and relevant to our customers’ long-term growth and development. • Strategy: Expand the nut category and JBSS’s reach in all channels of distribution. • Strategy: Enhance the JBSS infrastructure to focus on our people as a
Slide 9: Elgin, IL Update
Elgin, IL Update • Customer Shipping Began July 19, 2006 • Can Line Production Began October 17, 2006
Slide 10: Elgin, IL Office Move Planned for February/March 2007
John B. Sanfilippo & Son, Inc. Elgin, IL · Office Move Planned for February/March 2007
Slide 11: Fiscal 2006 Net Sales Decreased .4%
Fiscal 2006 Net Sales Decreased .4% ($ Millions) $600 $582.0 $580.0 $500 $520.8 $400 $419.7 $300 $352.8 $200 $100 $0 2002 2003 2004 2005 2006
Slide 12: % Gross Sales by Product Type
% Gross Sales by Product Type Other Peanuts 9% 20% Almonds 15% Walnuts Pecans 12% 22% Cashews & Mixed Nuts 22%
Slide 13: Business Diversification % of Net Sales
Business Diversification % of Net Sales Export Industrial 8% 23% Foodservice 11% Consumer Contract Mfg. Products 8% 51% Total $579,564,000 (Fiscal Year 2006)
Slide 14: Fiscal Year Financial Review
Fiscal Year Financial Review
Slide 15: Net Sales Dollars by Quarter
Net Sales Dollars by Quarter ($Thousands) $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 $138,658 $191,077 $119,004 $130,825 $579,564 2005 $134,645 $183,024 $119,979 $144,081 $581,729
Slide 16: Gross Profit Dollars by Quarter
Gross Profit Dollars by Quarter ($Thousands) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 $13,280 $16,139 $4,498 $3,738 $37,655 2005 $16,926 $24,990 $15,936 $20,577 $78,429
Slide 17: Gross Profit Percent by Quarter
Gross Profit Percent by Quarter 21.0% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 9.6% 8.4% 3.8% 2.9% 6.5% 2005 12.6% 13.7% 13.3% 14.3% 13.5%
Slide 18: Quarterly Gross Margins Compared to Tree Nut Market Prices
Quarterly Gross Margins Compared to Tree Nut Market Prices TREE NUT MARKET VS. GROSS MARGIN BY QUARTER gross margin $8.00 24.0% macadamias style 4 $7.50 22.5% $7.00 21.0% $6.50 19.5% pecans jr. mammoth $6.00 18.0% $5.50 16.5% hazel nuts xl $5.00 15.0% $4.50 13.5% brazils med/midgets $4.00 12.0% $3.5
Slide 19: Selling Expenses Dollars by Quarter
Selling Expenses Dollars by Quarter ($Thousands) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 $9,886 $11,135 $9,005 $9,921 $39,947 2005 $9,848 $10,908 $8,554 $10,107 $39,417
Slide 20: Selling Expenses Percent by Quarter
Selling Expenses Percent by Quarter 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 7.2% 5.8% 7.6% 7.6% 6.9% 2005 7.3% 6.0% 7.1% 7.0% 6.8%
Slide 21: Administrative Expenses Dollars by Quarter
Administrative Expenses Dollars by Quarter ($Thousands) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 $3,476 $3,742 $2,918 $4,076 $14,212 2005 $2,753 $3,260 $3,011 $3,401 $12,425
Slide 22: Administrative Expenses Percent by Quarter
Administrative Expenses Percent by Quarter 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 2.5% 2.0% 2.4% 3.1% 2.5% 2005 2.0% 1.8% 2.5% 2.4% 2.1%
Slide 23: Interest Expense Dollars by Quarter
Interest Expense Dollars by Quarter ($Thousands) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 $1,515 $1,149 $1,849 $2,003 $6,516 2005 $311 $416 $1,261 $2,010 $3,998
Slide 24: Net Income Dollars by Quarter
Net Income Dollars by Quarter ($Thousands) $20,500 $15,500 $10,500 $5,500 $500 -$4,500 - -$9,500 -$14,500 QTR 1 QTR 2 QTR 3 QTR 4 F/Y TOTAL 2006 -$1,128 -$64 -$5,913 -$7,336 -$14,441 2005 $2,556 $6,421 $2,051 $3,471 $14,499
Slide 25: Historical Financial Information 1991 Through 2006
Historical Financial Information 1991 Through 2006
Slide 26: Net Sales Dollars Fiscal Years 1991-2006 (Restated)
Net Sales Dollars Fiscal Years 1991-2006 (Restated) ($ Millions) $600 $582 $580 $500 $521 $400 $420 $342 $353 $300 $327 $312 $313 $293 $277 $200 $209 $193 $204 $165 $132 $100 $0 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 27: Basic EPS Fiscal Years 1991-2006
Basic EPS Fiscal Years 1991-2006 $2.50 $2.35 $2.00 $1.50 $1.63 $1.37 $1.00 $0.95 $0.83 $0.83 $0.84 $0.74 $0.74 $0.50 $0.63 $0.05 $0.56 $0.00 $0.20 $0.00 -$0.50 -$0.33 - -$1.00 -$1.36 -$1.50 1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 28: Total Debt Dollars Fiscal Years 1991-2006
Total Debt Dollars Fiscal Years 1991-2006 ($ Millions) $160 $140 $144 $136 $120 $115 $100 $107 $107 $98 $100 $99 $93 $89 $80 $76 $71 $70 $70 $60 $50 $40 $20 $19 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 29: Interest Bearing Debt Dollars 1992-2006
Interest Bearing Debt Dollars 1992-2006 $ TOTAL $ LONG TERM $ SHORT TERM YEAR DEBT DEBT DEBT 1992 76,050 35,861 40,189 1993 70,926 47,730 23,196 1994 106,716 56,419 50,297 1995 106,849 78,267 28,582 1996 98,310 76,016 22,294 1997 92,833 73,799 19,034 1998 115,145 63,182 51,963 1999 99,591 57,508 42,
Slide 30: Stockholders Equity Dollars Fiscal Years 1991-2006
Stockholders Equity Dollars Fiscal Years 1991-2006 ($ Millions) $200 $196 $180 $181 $182 $160 $140 $120 $119 $100 $102 $94 $80 $87 $80 $76 $73 $73 $78 $60 $69 $68 $40 $32 $20 $25 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 31: Sales & Marketing Review 2006
Sales & Marketing Review 2006
Slide 32: Business Diversification: Contract Manufacturing
Business Diversification % of Net Sales Contract Mfg. 8% Contract Mfg. Total $44,874,000 (Fiscal Year 2006)
Slide 33: Business Diversification: Foodservice
Business Diversification % of Net Sales Foodservice 11% Contract Mfg. 8% Foodservice Total $64,356,000 (Fiscal Year 2006)
Slide 34: Business Diversification: Export
Business Diversification % of Net Sales Export Industrial 8% 23% Foodservice 11% Contract Mfg. 8% Export Total $45,809,000 (Fiscal Year 2006)
Slide 35: Business Diversification: Consumer
Business Diversification % of Net Sales Export Industrial 8% 23% Foodservice 11% Consumer Contract Mfg. Products 8% 51% Consumer Total $292,890,000 (Fiscal Year 2006)
Slide 36: Industry Snack & Baking Nut Category Reviews
Industry Snack & Baking Nut Category Reviews *FDM-Food/Drug/Mass 52 Weeks Ending 7/1/06 vs. 7/1/05 Data Source: ACNielsen *Wal-Mart is not included
Slide 37: Snack Industry Top-Line Trends
Snack Industry Top-Line Trends • 80% of consumers report choosing fruits and nuts to ensure a healthy diet. • Cashews are the #1 favored nut by consumers. • Category is solid: • Consumption growth fueled by ‘healthier eating’ • Consumer behavior /attitudes • Obesity concerns • More snacking occasion
Slide 38: Fiscal 2006 Snack Industry Sales/Marketing Trends
Fiscal 2006 Snack Industry Sales/Marketing Trends • Competitive pricing pressures • Shifting customer expectations • Almonds and snack mixes with nuts achieved healthy growth rates. • Food manufacturers continue to use nuts as part of their growth strategy.
Slide 39: #4 John B. Sanfilippo & Son, Inc.
#4 JOHN B. SANFILIPPO & SON, INC.
Slide 40: Total Unit & Revenues Snack Industry Nuts/Seeds/Mixes
Total Unit & Revenues Snack Industry Nuts/Seeds/Mixes Food, Drug, Mass -1.4% 600,000,000 500,000,000 400,000,000 300,000,000 Year Ago Current Year 200,000,000 100,000,000 0 +2.8% Units $1,750,000,000 $1,500,000,000 $1,250,000,000 $1,000,000,000 Year Ago $750,000,000 CurrentYear $500,000,000 $250,000
Slide 41: Snack Nut Industry Category Unit Sales by Nut Type
Snack Nut Industry Category Unit Sales by Nut Type Food, Drug, Mass Year Ago Current Year -5.0% 200,000,000 175,000,000 150,000,000 125,000,000 -2.4% 100,000,000 -3.4% -1.6% 75,000,000 +9.5% -1.3% 50,000,000 +21.5% -11.0% 25,000,000 -12.9% +31.1% 0 Seeds Mixes A/O Peanut Cashew Almond In-Shell Pista
Slide 42: Total Baking Nut Industry
Total Baking Nut Industry Food, Drug, Mass -0.5% 160,000,000 120,000,000 80,000,000 Year Ago Current Year 40,000,000 0 Units +10.0% $600,000,000 $450,000,000 $300,000,000 Year Ago Current Year $150,000,000 $0 Dollars Source: ACNielsen FDM 52 Weeks Ending 7/01/06 vs. Year Ago
Slide 43: Baking Nut Industry Unit Sales by Nut Type
Baking Nut Industry Unit Sales by Nut Type Food, Drug, Mass Year Ago Current Year 60,000,000 +1.8% 50,000,000 -2.7% -1.5% 40,000,000 30,000,000 20,000,000 10,000,000 +10.0% -7.6% -1.8% +0.7% -0.7% -18.3% 0 A/O Filbert/Hazelnuts Brazil Nuts Pecans Almond 1.3% Walnuts Peanuts Peanuts 0.5% Pine Nuts Pi
Slide 44: Brand Support
Brand Support National Radio Television Regional Campaigns Trade National National Cause Marketing Regional / Local Customer National Print & National Public Relations Promotional / Cross National Sports Marketing Program Promotional Activity
Slide 45: Print Advertising
Print Advertising
Slide 46: Sports & Community Sports Sponsorships
Sports & Community Sports Sponsorships
Slide 47: Award Winning
Award Winning 3 time Category Colonel Award Winner Superior Taste Award –American Academy of Taste Retail and Food Service
Slide 48: Fisher Fusions
Fisher Fusions • 7 exciting flavors in single-serve re-sealable packaging. • 3 larger family-sized options. • Support: Key Dates 4th of July Back To School Labor Day Halloween Thanksgiving Christmas Super Bowl Valentine’s Day National Peanut Easter Memorial Day Father’s Day Month BRAND/SIZE July Aug
Slide 49: Holiday 2007
Holiday -2007 CORPORATE 4. JOHN B. SANFILIPPO & SON, INC.
Slide 50: 2007 Looking Forward
2007 Looking Forward National Radio Television Regional Campaigns Trade National National N Cause Marketing M g Regional / Local / Local Customer National Print & & National Public Relations Promotional // Cross National Sports Marketing Program Promotional Activity
Slide 51: We Look Forward to a Successful Fiscal 2007
We Look Forward to a Successful Fiscal 2007
Sanfilippo John B & SON — Shareholder Meeting (November 2006) on 6ix