John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Investor Presentation (February 2016)
63 slides from John B. Sanfilippo & Son's investor presentation, February 2016
Slide 1: JBSS Investor Presentation
JBSS INVESTOR PRESENTATION February 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 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 s
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type Fiscal Year 2015 Full assortment of nut types 5.2% ALMOND Full variety of value-added products 23.4% PECAN 22.0% Wide variety of dried fruit and other SNACK & TRAIL MIXES snack products PEANUT 12.7% Customized, unique product formulas 11.0% WALNUT CASHEW & MI
Slide 5: Consistent success over past 4 fiscal years
Consistent success over past 4 fiscal years $ Diluted EPS FY 12-FY 15 3 $ 2.5 2 1.5 2.61 2.36 1 1.98 1.58 0.5 0 FY12 FY13 FY14 FY15 Diluted EPS improvement of 65% from Net Sales increased by 27% over FY14 to a record FY12 to FY15 $887.2 million 5
Slide 6: Continuing to Create Shareholder Value
Continuing to Create Shareholder Value JBSS Russell 2000 Stock Price $63.53 02/03/2016 Stock Price $36.51 02/04/2015 Outperformed the Russell 2000 Index by over 83%! 6
Slide 7: 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 7
Slide 8: FY 2015 Strategy Update
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Slide 9: Building Our Future
3S JOHN B- SANFILIPPO © SON, INC. BUILDING OUR FUTURE JOHN B. SANFILIPPO & SON, INC. Build Fisher and Orchard Valley Harvest into leading nut brands. Utilize consumer insights to develop products and integrated marketing programs that build brand equity, meet consumer needs, and grow the category fo
Slide 10: FY 2015 Accomplishments
FY 2015 Accomplishments 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. 10 *Source: IRI: Total Nut Cate
Slide 11: FY 2015 Accomplishments
FY 2015 Accomplishments Launched Fisher Flagship Store on Tmall in China. Developed a Fisher stand-up bag product line for China. 11
Slide 12: FY 2015 Accomplishments
FY 2015 Accomplishments 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. 12
Slide 13: Nut Category Review
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Slide 14: Steady Increase in Nut Retail Prices Since FY 2011
Steady Increase in Nut Retail Prices Since FY 2011 Price Per Pound +29% Since FY 2011 $5.85 $5.98 $5.54 $5.62 $5.24 $4.63 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 CY 2015 14 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to CY 15 Year 52 weeks Endin
Slide 15: Retail Prices Up Across Most Major Nut Types over the Last 4 Years
Retail Prices Up Across Most Major Nut Types over the Last 4 Years % Increase in Price Per Pound Over the Past 4 Years 42.0% 42.0% 41.0% 39.0% 35.0% 19.0% 15.0% 13.0% WALNUT PISTACHIO ALMOND MIXED NUT CASHEW MACADAMIA PEANUT PECAN NUT 15 Source: IRI: Total Nut Category – Multi Outlet Geography Time
Slide 16: Steady Category Growth
Steady Category Growth Category $ Sales (M) Category Pound Sales (M) 6,198 1,046 5,885 6,092 1,041 5,636 1,036 5,284 1,025 4,749 1,017 1,008 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 CY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 CY 2015 16 Source: IRI: Total Nut Category – Multi Outlet Geography Tim
Slide 17: JBSS Sales Channel Updates
JBSS Sales Channel Updates 17
Slide 18: Fiscal 2015 Net Sales $887 Million
Business Channel Diversification Export Commercial 4% Ingredients $36 23% $207 $529 $115 Contract Pkg. 13% Consumer 60% (Millions of $) Fiscal 2015 Net Sales $887 Million 18
Slide 19: FY 2015 Consumer Channel
FY 2015 Consumer Channel Consumer 60% 16.7% vs. FY ‘14 Fiscal 2015 Net Sales $529 Million 19
Slide 20: FY 2015 Commercial Ingredients Channel
FY 2015 Commercial Ingredients Channel Commercial Ingredients 23% 7.3% vs. FY ‘14 Fiscal 2015 Net Sales $207 Million 20
Slide 21: FY 2015 Contract Packaging Channel
FY 2015 Contract Packaging Channel Contract Packaging 13% 17.0% vs. FY '14 Fiscal 2015 Net Sales $115 Million 21
Slide 22: FY 2015 Export Channel
FY 2015 Export Channel Export 4% 6.0% vs. FY ‘14 Over FY’12 Fiscal 2015 Net Sales $36 Million 22
Slide 23: FY 2015 Financial Milestones
FY 2015 Financial Milestones 23
Slide 24: JBSS Stockholders’ Equity FYs 1991-2015
JBSS Stockholders’ Equity FYs 1991- 2015 In millions of $ $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $0 1991 1992 1993 1994 1997 1998 1999 2000 2001 2002 2003 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 1995 1996 2005 2006 24
Slide 25: JBSS Net Sales FYs 1991-2015
JBSS Net Sales FYs 1991- 2015 In millions of $ $1,000 Increased pound $900 volume and prices SKU Rat., De- emphasized $887 $800 Industrial Sales, millio $700 Lower Prices n $600 Low Carb Diet Run Up $500 $400 $300 $200 $100 $0 1997 (6 MO) 1991 1992 1993 1995 1996 1998 1999 2001 2002 2004 2005 2006 2
Slide 26: JBSS Total Outstanding Debt FYs 1991-2015
$0 $100 $160 $120 $140 $20 $40 $60 $80 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 Total Outstanding Debt FYs 1991- 2015 2015 26
Slide 27: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2015 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% 27
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* $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 measure 30
Slide 31: EBITDA Margin (% of Net Sales)
EBITDA* Margin (% of Net Sales) 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 31
Slide 32: Peanut and Tree Nut Spot Market Prices vs. JBSS
JOHN B. SANFILIPPO & SON, PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS B § § FS F x 2 8 8 R B A d a ) 6 S 4 °o oy) °S wn N N a a a a ns o vt nm a = , 1 sT-22q be ——— stds g id T T T T T scum 3 4 STEW a 129g ® L_. |__| toe 2 I I I I r wrens & a Paes 1... __] v 2d ; a dos § L_.—.__1__1_ ; 1... 1.11
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% 33
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% 34
Slide 35: FY 2015 Brand Marketing Overview
FY 2015 Brand Marketing Overview 35
Slide 36: Grow Brands
Grow Brands Recipe Nuts Snack Nuts 36
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 +14% Recipe Nuts +8% Snack Nuts POUND SALES DOLLAR SALES 37 Source: JBSS shipment data
Slide 38: Recipe Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts 38
Slide 39: Fisher Recipe has Grown Market Share
Fisher Recipe has Grown Market Share 39 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 for 4+ Fiscal Years
Strong sustained growth on Fisher Recipe Nuts for 4+ Fiscal Years Fisher Recipe Dollar Sales % Change vs. Previous Year Total US MULO 20.5% 15.4% 12.8% 9.7% 8.8% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD 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 41
Slide 42: Continue to Build Fisher Brand Equity with Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship 42
Slide 43: Integrated Marketing Key to Building Brand Equity
Integrated Marketing Key to Building Brand Equity Public Relations Food Network Social Media Website Email 43
Slide 44: Away From Home
Building Brand Presence and Equity “Away From Home” Merchandised Foodservice Location 44
Slide 45: Snack Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nutse 45
Slide 46: Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets Snack Nuts 46
Slide 47: We Are Growing our Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets Snack Nuts Fisher Snack Nuts Pound Share (High Franchise Markets) 4.8% 4.0% 3.5% 3.1% 2.2% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD Source: IRI: Total Snack Nut Category – Core Geography MULO (Chicago, 47 Milwaukee, Minneapolis, and St. Lou
Slide 48: Driving Results on our Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business Pound Sales – Fisher Dry Roast Peanuts 888,805 777,756 652,052 535,681 FY2013 FY2014 FY2015 CY 2015 Source: IRI: Total Snack Nut Category – Core Geography MULO (Chicago, Milwaukee, Minneapolis, and St. Louis – Calendar 2015 Ending 12/27/15 48
Slide 49: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts 49
Slide 50: A Snack Bite combining Consumer favorites
A Snack Bite combining Consumer favorites 50
Slide 51: Introducing Fisher Nut Exactly
Introducing Fisher Nut Exactly 4 Great Popcorn Varieties for Grocery Channel Unique Varieties for the Club Channel 51
Slide 52: 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 52
Slide 53: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too 53
Slide 54: Marketing Support is Designed to Build Consumer Awareness and Drive Trial
Marketing Support is Designed to Build Consumer Awareness and Drive Trial PR Media Outreach 54
Slide 55: Pure and Simple Goodness
Onchend “se Pure and Simple Goodness The Global Source for Nutse 5
Slide 56: Orchard Valley Harvest Brand 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 56
Slide 57: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness 57
Slide 58: Strong Growth on Orchard Valley Harvest
Strong Growth on Orchard Valley Harvest Orchard Valley Harvest Growth FY15 vs. FY14 +48% +34% POUND SALES DOLLAR SALES 58 Source: JBSS shipment data
Slide 59: Strong Distribution Gains
Strong Distribution Gains Orchard Valley Harvest % ACV Distribution * 35 32 19 14 FY 2013 FY 2014 FY 2015 FY 2016 YTD OVH % ACV Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 YTD Ending 12/27/15 59 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 60: 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 61: Expanding to Front of House Foodservice Locations
Expanding to Front of House Foodservice Locations Michigan Ski Resort Sodexho B&I Location 61 University Setting
Slide 62: Impactful Marketing Support
Impactful Marketing Support Digital Initiatives Website / Ibotta 62
Slide 63: Thank You!
Thank You! ey Bs z= kz os 4 9 2 iS} RS h BO ES a 2 g 0 ze <= K g
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