Annual Meeting of Stockholders Fiscal Year 2019 Introduction - - PowerPoint PPT Presentation

Annual Meeting of Stockholders Fiscal Year 2019

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Introduction

Leslie Garber

Manager, Investor Relations

Agenda

• Election of Directors & Other Stockholder Voting Items

»» Proposal No. 1: Election of Directors »» Proposal No. 2: Ratification of Appointment of Independent Auditor »» Proposal No. 3: Approval of the Amendment of the 2006 Long Term Incentive Plan

• Presentations and Financial Review
• Q&A

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Election of Directors & Other Stockholder Voting Items

Laura Scheland

Vice President, General Counsel & Secretary

Cautionary Statements Regarding Forward-Looking Information

Except for the historical information contained herein, certain of the matters discussed in this communication constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “seek,” “estimate,” “anticipate,” “believe,” “may,” “will,” “target,” “assume” and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding anticipated future financial and operating performance and results, and estimates for growth

• verall and in particular business lines. These statements are based on the current expectations of management of Oil-

Dri Corporation of America (“the Company”). There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this presentation, and we encourage you especially to review the ones that were identified in Item 1A (Risk Factors) of the Company’s most recent Annual Report

• n Form 10-K and other reports filed with the Securities and Exchange Commission. Other unknown or unpredictable

factors could also have material adverse effects on future results, performance or achievements of the Company. You are cautioned not to place undue reliance on forward-looking statements in this presentation. Except to the extent required by law, the Company does not have any intention or obligation to update publicly any forward-looking statements contained in this presentation, whether as a result of new information, future event, changes in assumptions, or otherwise.

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Daniel S. Jaffee

Chairman, President & CEO

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Fiscal Year 2019

A Year to Remember!

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New Vice Presidents

Aaron Christiansen

VP of Manufacturing

• Mechanical Engineering, Washington

University

• Procter & Gamble
• Unilever
• Oil-Dri 4 years

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Tom Cofsky

VP of Global Infrastructure

• Chemical Engineering, Rensselaer

Polytech Institute

• UOP
• Oil-Dri 32 years
• JDE Oracle “Go Live” 8/1/18

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Sarah Heidkamp

VP, Sales, Non Foods & ECommerce

• B of A from University of Illinois at Chicago
• MBA from Kellogg / Northwestern University
• Kraft, Mars, Vita Foods
• Oil-Dri 6 years

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Paula Krystopolski

VP, Controller

• BS in Accounting from University of Northern

Iowa

• MBA and Masters in HR from Loyola University
• Arthur Young & Co.
• Oil-Dri 19 years

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Jessica Moskowitz

VP and GM, Consumer Products Division

• BS in Accounting & Finance from Indiana

University

• MBA from Kellogg / Northwestern University
• William Blair & Co.
• Kraft
• Oil-Dri 2 ½ years

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Molly VandenHeuvel

COO

• Industrial Engineering, Northwestern

University

• Procter & Gamble
• Kraft
• Oil-Dri 8 Months!!!

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Operations Review

Molly VandenHeuvel

Chief Operations Officer

Sales and Operations Planning (S&OP)

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Portfolio Management Review Demand Review Supply Review Management Business Review

• The way we integrate our business

decisions from end to end

• A foundation supporting future growth

Benefits

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➢ Why S&OP Now

✓ Improvement is executed leveraging People/Process/Tools ✓ Leverage and exploit JDE with this process

➢ Benefits Expected

✓ Integrated Plan Visibility tied to strategy ✓ Forward looking 12-24 months ✓ Anticipate, Collaborate, Orchestrate ✓ Business consensus on plan and actions to close potential gaps

Supply Chain and Operations “4 Cs”

Customer (Internal and External) Cost Cash Capability (People and Process)

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Consumer Products Division

Jessica Moskowitz

VP & General Manager

Cat’s Pride has a new look!

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Infuse Litter for Good Message on-pack Enhance Better/Best Distinction Improve shopability as variety names link to performance Grab attention via new cat imagery and modernized logo Evolve Lightweight as a Brand to Lightweight as a Benefit

Better Best

Brand updates reflect evolving consumer needs

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Cat’s Pride Clear the Shelters Partnership

1,900 Participating Shelters in 2019 160,263 Adoptions in 2019 155 Cat’s Pride & Shelter Volunteers in 2019 9 Volunteers in 2018 1,186 Shelters in 2018 102,600 Adoptions in 2018

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Clear the Shelters Integration Television Spot

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Cat’s Pride Sponsored Ellen’s Cat Week in 2019

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Cat’s Pride Sponsored Ellen’s Cat Week in 2019

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Creating Value from Sorbent Minerals in Antibiotic Free Livestock Production

Mike McPherson

Group Vice President, B2B

JET FUEL CLARIFICATION SURFACTANTS REMOVAL FROM OILS CHLOROPHYLL REMOVAL FROM EDIBLE OILS

Experts in Mineral Adsorptive Chemistry

PATHOGEN REMOVAL PICKLE PROCESSING BIOFUEL PURIFICATION

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Materials Sciences Life Sciences

Research & Development

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Global Trend

European Union banned the use of Antibiotics as Growth Promoters (AGPs) in animal feed effective January 1, 2006

European Commission, Brussels, December 22, 2005

Market Potential for AGP Alternatives

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$2.40B $3.40B

Total Size: $5.80 Billion

Antibiotics AGP Replacements

Frost & Sullivan Phytogenics (2018), Vetnosis Medicinal Feed Additives 2017, 2019

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Treat Disease Promotes Animal Growth

Antibiotic Usage

Bacterial Lysis Kills Bad Bacteria Promotes “Good” Bacteria

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Development of Bacterial Diseases

Damage Intestines Toxin Production Colonization Invasion 1 2 3 4

Unique Mineral Composition

TYPICAL MONTMORILLONITE ODC CALCIUM MONTMORILLONITE WITH HIGH CAPACITY OPAL LEPISPHERES

35,000x 35,000x

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Proprietary Surface Activation Technology

Oil-Dri Mineral Activated Oil-Dri Mineral

Chemically Bound Bacterial Toxin

Activation Improves Bacterial Toxin Binding

Opal Lepispheres

Oil-Dri Mineral Binding Salmonella Bacteria

University of Georgia

Active Pharmaceutical Ingredients (APIs)

Mineral-Based Human Digestive Aids

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Financial Results Fiscal 2019 & First Quarter Fiscal 2020

Susan Kreh

Chief Financial Officer

Net Sales (millions)

$236 $219 $227 $241 $251 $266 $261 $262 $262 $266 $277

$200 $210 $220 $230 $240 $250 $260 $270 $280 $290 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

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1st Quarter Net Sales (millions)

$63 $53 $56 $60 $61 $64 $66 $68 $67 $67 $66 $71

$50 $55 $60 $65 $70 $75 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

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Tons Sold (thousands)

967 899 869 844 821 877 836 795 767 742 758

200 400 600 800 1,000 1,200 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

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Tons Sold (thousands)

967 899 869 844 821 877 836 795 767 742 758 189

200 400 600 800 1,000 1,200 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

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YOY Growth

4.4%

181 Q1 FY19

Net Sales Per Ton

$244 $244 $261 $285 $305 $304 $313 $330 $342 $359 $365

$220 $240 $260 $280 $300 $320 $340 $360 $380 $400 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 4.1% (FY 09 - FY 19)

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Net Sales Per Ton

$244 $244 $261 $285 $305 $304 $313 $330 $342 $359 $365 $376

$220 $240 $260 $280 $300 $320 $340 $360 $380 $400 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 4.1% (FY 09 - FY 19)

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FY 19 Q1

$366

Gross Profit Per Ton

$51 $55 $58 $70 $81 $68 $72 $97 $96 $97 $87

$40 $50 $60 $70 $80 $90 $100 $110 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 5.5% (FY 09 - FY 19)

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Gross Profit Per Ton

$51 $55 $58 $70 $81 $68 $72 $97 $96 $97 $87 $105

$40 $50 $60 $70 $80 $90 $100 $110 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 5.5% (FY 09 - FY 19)

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FY 19 Q1

$89

Net Income Per Ton

$10 $11 $10 $7 $18 $10 $14 $17 $14 $11 $17

$0 $5 $10 $15 $20 $25 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 FY 18 FY 19 FY 20 Q1

CAGR 5.4% (FY 09 - FY 19)

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Net Income Per Ton

$10 $11 $10 $7 $18 $10 $14 $17 $14 $11 $17 $19

$0 $5 $10 $15 $20 $25 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 FY 18 FY 19 FY 20 Q1

CAGR 5.4% (FY 09 - FY 19)

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FY 19 Q1

$5

Earnings Per Share

$1.33 $1.30 $1.26 $0.85 $2.07 $1.17 $1.59 $1.87 $1.47 $1.11 $1.67

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 2.3% (FY 09 - FY 19)

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Earnings Per Share

$1.33 $1.30 $1.26 $0.85 $2.07 $1.17 $1.59 $1.87 $1.47 $1.11 $1.67 $0.46

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 2.3% (FY 09 - FY 19)

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FY 19 Q1

$0.12

ODC Closing Share Price (As of July 31)

$15.75 $21.88 $20.69 $21.93 $31.86 $29.17 $26.26 $37.45 $41.36 $42.36 $35.43 $35.01 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17 FY 18 FY 19 FY 20 Q1

CAGR 8.4% (FY 09 - FY 19)

As of 10/31/19

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Paid Dividends Per Share

$0.57 $0.61 $0.65 $0.69 $0.73 $0.77 $0.81 $0.85 $0.89 $0.93 $0.97

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 5.5% (FY 09 - FY 19)

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Paid Dividends Per Share

$0.57 $0.61 $0.65 $0.69 $0.73 $0.77 $0.81 $0.85 $0.89 $0.93 $0.97 $0.25

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

CAGR 5.5% (FY 09 - FY 19)

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FY 19 Q1

$0.24

Significant Cash Outlays

Total: $240.1MM

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* Change in Working Capital. Working Capital = (A/R + Inventory) – (A/P)

$146.2MM CapEx $10.0MM Working Capital* $55.1MM Dividends $28.8MM R&D $15MM CapEx $2.0MM Working Capital* $6.8MM Dividends $3.2MM R&D

Total: $27.0MM FY09 – FY19 FY 19

Outstanding Debt (millions)

$21.5 $18.3 $33.3 $29.7 $25.9 $22.4 $18.9 $15.4 $12.2 $9.2 $6.1 $3.1 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Q1

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Q & A

Dan Jaffee

Chairman, President & CEO

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