MGP Ingredients, Inc. · NASDAQ:MGPI
MGP Ingredients — Roth Capital Partners 19th Annual OC Conference 2007
33 slides from MGP Ingredients's conference presentation, Feb 21, 2007
Slide 1: Taking MGPI to a Higher Level
Taking MGPI to a Higher Level Ladd Seaberg, Chairman & CEO Tim Newkirk, President & COO Roth Capital Partners Conference 19th Annual OC Conference Febr uary 21, 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please note that this presentation was created as of February 16, 2007 and reflects management’s views as of that date. Certain of the information discussed in this presentation may contain forward-looking statements relating to the operations, financial condition and operating
Slide 3: MGPI at a Glance
MGPI at a Glance $322.5 million in FY 2006 Revenues
Slide 4: Annual Net Sales
Annual Net Sales $ in Millions $192.4 $270.7 $275.2 $322.5 $172.6 (6 months) Fiscal years ending June 30
Slide 5: Nearing Record Annual Net Income
Nearing Record Annual Net Income $ in Millions $5.2 $9.5 $4.0 $14.0 $13.8 Fiscal years ending June 30
Slide 6: Key Distiller of High-Quality Alcohol
Key Distiller of High-Quality Alcohol Distillery Sales Distillery By-Products Fuel Grade Alcohol Food Grade Alcohol FY 07 (6 months) (in millions) Fiscal years ending June 30
Slide 7: Increased Distillery Profits
Increased Distillery Profits Note: Pre-tax profit/loss amounts shown do not include corporate expense of approx. $1.6 million and $4.2 million for fiscal 2005 and 2006, respectively, and approximately $745,000 for the first six months of fiscal 2007.
Slide 8: Recent Distillery Gains Driven by Strong Pricing
Recent Distillery Gains Driven by Strong Pricing Alcohol price % change per gallon Base Index = 100 at Q4 2004 (June FY) Food Grade Alcohol Fuel Grade Alcohol 40% 33%
Slide 9: Starch & Protein Technologies Ingredients Sales
Starch & Protein Technologies Ingredients Sales Commodity Ingredients Specialty Food Ingredients 15% 61% 24% Specialty FY 07 (6 months) Non-Food Ingredients (in millions) Fiscal years ending June 30
Slide 10: Ingredients Segment Pre-Tax Profit/Loss Performance
Ingredients Segment Pre-Tax Profit/Loss Performance Dollars (Millions) 2nd Qtr. FY 06 4th Qtr. FY 06 1st Qtr. FY 07 2nd Qtr. FY 07
Slide 11: Specialty Ingredients Strategy
Specialty Ingredients Strategy Base Product Line Food Ingredients
Slide 12: A Focus on Applied Food Science
A Focus on Applied Food Science Resistant starch technologies Textured protein technologies Protein isolate technologies
Slide 13: Promising New Products
Promising New Products FiberRite™RW RediShred High fiber, reduced fat prepared foods High protein, meat substitutes and meat extensions
Slide 14: Specialty Ingredients Strategy
Specialty Ingredients Strategy Finished Pet Treats Developing Base Product Line Food Ingredients
Slide 15: Pet Industry Applications
Pet Industry Applications Finished Pet Products Co-extruded Injection molded Retail packaging options Pet Ingredients Pet treats Pet food
Slide 16: Specialty Ingredients Strategy
Specialty Ingredients Strategy Emerging Developing Base Product Line Biopolymer Products Finished Pet Treats Food Ingredients
Slide 17: Growing Interest in Biopolymers
Growing Interest in Biopolymers Biopolymers Grain-based resins Bio-based Biodegradable
Slide 18: MGP Ingredients, Inc. Creating Better Solutions...Naturally
MGP INGREDIENTS, INC. Creating Better Solutions...Naturally
Slide 19: Dynamic Commercialization Process
Dynamic Commercialization Process Product Platforms Customer Technical Applications Research & Development
Slide 20: Taking MGPI to a Higher Level: Strategic Alignment
Taking MGPI to a Higher Level Strategic Alignment Organize ingredients around the customer value chain
Slide 21: Reorganized for Value Creation
Reorganized for Value Creation Management Structure Marketing International Product Platforms Specialty Protein Innovations Isolates Concentrates Resistant Starch Innovations Fibersym® FiberRite™ Textured Protein Innovations Wheatex ® Resin Technology Chewtex ® Biopolymer Innovations Terratek ™ Heri
Slide 22: Strategic Alignment: Operating Excellence
Taking MGPI to a Higher Level Strategic Alignment Organize ingredients around the customer value chain Operating Excellence Generate more cash by capturing our “productivity gaps”
Slide 23: Ingredients Segment Profit Strategy
Ingredients Segment Profit Strategy Improve production efficiencies and yields Streamline product portfolio Higher value mix Strengthen pricing
Slide 24: Wheatex Margin Gains From Improved Efficiencies/Product Mix
Wheatex® Margin Gains From Improved Efficiencies/Product Mix Percent Margin Improvement 36 Products 28 Products 4th Qtr. FY 06 Efficiency 2nd Qtr. FY 07
Slide 25: Strategic Alignment: Margin Improvement
Taking MGPI to a Higher Level Strategic Alignment Organize ingredients around the customer value chain Operating Excellence Generate more cash by capturing our “productivity gap” Margin Improvement Strengthen profit performance through cost leadership, product mix and risk management
Slide 26: Managing Commodity Risk a Priority
Managing Commodity Risk a Priority Energy and grain combined make up close to 74%* of our total COGS Other 26% Energy 20% Grain 54% * Based on 5-year average
Slide 27: Headwinds from Commodity Costs
Headwinds from Commodity Costs Raw Material Price % Change Per Bushel Base Index = 100 at Q4 2004 (June FY) Corn Wheat 20% (2%)
Slide 28: Managing Volatility: Hedging
Managing Volatility: Hedging Dollar Change per Bushel Relative to 07/01/2005 Baseline Period
Slide 29: Targeting Stable Gross Margins
Targeting Stable Gross Margins Gross margin as % of net sales 18% June FY High-value products Materials sourcing Labor & energy costs Starch recovery Process changes
Slide 30: Strategic Alignment: Capital Discipline
Taking MGPI to a Higher Level Strategic Alignment Operating Excellence Margin Improvement Capital Discipline Organize ingredients around the customer value chain Generate more cash by capturing our “productivity gap” Strengthen profit performance through cost leadership, product mix and risk managem
Slide 31: Capital for Distillery Enhancements
Capital for Distillery Enhancements Incremental volume increases Energy efficiency Environmental compliance
Slide 32: Positive Trends Drive Our Opportunities
Positive Trends Drive Our Opportunities Growth of biofuels Stable demand for industrial and beverage alcohol Health and wellness lifestyles Nutritious, tasty and convenient foods Increased spending on pets Environmental initiatives
Slide 33: Thank You
Thank You Ladd Seaberg, Chairman & CEO Tim Newkirk, President & COO Roth Capital Partners Conference 19th Annual OC Conference February 21, 2007 Ticker symbol: MGPI Traded on NASDAQ Global Select Market www.mgpingredients.com
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