DEL MONTE FOODS 2007 ANALYST AND INVESTOR DAY JULY 10, 2007 DEL - PowerPoint PPT Presentation

DEL MONTE FOODS 2007 ANALYST AND INVESTOR DAY JULY 10, 2007 DEL MONTE FOODS Lehman Brothers Back-to-School Consumer Conference 1 September 2007

FORWARD LOOKING STATEMENT DISCLAIMER During the course of our discussion today, we will make statements that may constitute projections, expectations, beliefs or similar forward-looking statements. We would like to caution you that the Company’s actual results could differ materially from the results anticipated or projected in these forward-looking statements. Additional detailed information concerning important factors that could cause Del Monte’s actual future results to differ materially from the information we will give you today is included in our public filings, including our most recent annual report on Form 10-K and our current report on Form 8-K dated August 30, 2007, which are available on the SEC’s EDGAR database or on our website. The Company does not undertake to update any of these forward-looking statements in light of new information or future events. 2

RICK WOLFORD CHAIRMAN AND CEO COMPANY OVERVIEW 3 ADD IMAGE HERE

READY TO GO BRANDED LEADER � Simplified, brand-focused portfolio – Pet and Consumer � Strong brands – across each portfolio � Categories – large and healthy with positive trends � Innovation – brand-based, value-added, consumer-driven COMPETITIVE STRENGTHS � Go-to-market platform with scale � Supply chain structure focused on U.S. retail market STRONG INTEGRATED BUSINESS FUNDAMENTALS � High margin/growth strategic-focus businesses � Combined with stable, cash generating businesses TALENT TO LEAD 4

GO-FORWARD FOCUS Four key areas of focus with action plans in place Addressing Enhancing Drive Value-Added Offset Inflationary and Offset Inflationary and Innovation Other Costs Other Costs Stabilize StarKist Stabilize StarKist Build Share Strength 5

DEL MONTE – BRANDED LEADER Branded portfolio works well together F07 Net Sales Common/Shared Drivers � Same branded retail disciplines – marketing, sales Pet Products � Common customer base Consumer ~40% Products ~60% � Similar center store promotional merchandising execution F07 Operating Income � Combined center store events - creates scale impact for customer � Shared go-to-market platform with Pet scale bandwidth Products Consumer ~60% Products � Same dry grocery supply chain ~40% � Common brand-focused talent support 6

LARGE AND GROWING CATEGORIES Del Monte participates in nine categories with dollar sales of ~$1B or greater, all growing Pet Categories Consumer Categories F07 Size '04-'07 F07 Size '04-'07 ($B) CAGR ($B) CAGR Dry Dog $6.6 10.4% Fruit $2.3 6.4% Dry Cat $2.8 5.8% Vegetable $1.9 1.7% Pet Snacks $2.2 12.9% Tomato $1.3 3.9% $11.6 9.7% Broth $0.6 13.7% $6.1 4.9% Wet Cat $2.0 4.8% Wet Dog $1.7 6.6% Tuna $1.6 1.2% $3.7 5.6% Total $15.3 8.6% Total $7.7 4.1% 7 Source: Nielsen All-Outlet Household Panel and internal estimates ended Fiscal 2007

DEL MONTE – BRANDED LEADER Structure is strong 1. Branded leadership drives growth • ~90% of Del Monte’s net sales are and margin expansion branded • ~80% of Del Monte’s net sales are branded #1 or #2 • Large Brands • 1 > ~$1B in sales • 1 > ~$500M in sales • 4 = ~$200-$300M in sales • Consumer Categories ’04-’07 CAGR = 2. Participation in large and growing ~4% categories • Pet Categories ‘04-’07 CAGR = ~9% • Broad array of consumer innovation 3. Innovation strategies and opportunities enabled by brand disciplines aligned against platforms consumer growth platforms • Robust pipeline of value-added new products in place • Line extensions and white space opportunities 8 Source: Nielsen All-Outlet Household Panel and internal estimates ended Fiscal 2007

DEL MONTE – BRANDED LEADER Structure is strong 5. Powerful go-to-market platform • Top 10 dry-grocer marketer in the center store 1 with competitive scale • Direct sales – majority customer base • Leveragable and expandable platform • >98% customer service levels 6. Integrated supply chain drives competitive cost structure • Cost advantaged in consumer • Cost parity in pet 7. Strong cash flow generator • Cash flow yield = ~6.6% - top quartile of peer set 8. Integrated portfolio generates • NSV = ~60% Consumer and ~40% Pet • OI = ~40% Consumer and ~60% Pet earnings and cash flow 1. Excluding beverage companies. Source: Nielsen All-Outlet Household Panel and internal estimates ended Fiscal 2007 9

RICK WOLFORD CHAIRMAN AND CEO GO-FORWARD FOCUS 10

GO-FORWARD FOCUS Four key areas of focus with action plans in place Addressing Enhancing Drive Value-Added Offset Inflationary and Offset Inflationary and Innovation Other Costs Other Costs Stabilize StarKist Stabilize StarKist Build Share Strength 11

OFFSET INFLATIONARY AND OTHER COSTS VIP and Transformation Plan savings combat escalating costs and build the overall competitiveness of the business Key Drivers $M $560 550 Cumulative Gross � VIP Cost Reduction Programs Cost Change 500 • Lean Operations VIP and Transformation 450 • Hedging Savings $415 400 • Global Sourcing • Economic Return Projects 350 $270 $355 300 � Transformation Plan Savings $295 250 • Supply Chain Optimization 200 $205 • Dry Pet Food Distributed Cumulative Net $120 Cost Change 150 Manufacturing 100 $100 F05 F06 F07 F08e % of Cost Increases ~15% ~40% ~60% ~30% Offset in that year 12

GO-FORWARD FOCUS Four key areas of focus with action plans in place Addressing Enhancing Drive Value-Added Offset Inflationary and Offset Inflationary and Innovation Other Costs Other Costs Stabilize StarKist Stabilize StarKist Build Share Strength 13

STABILIZE STARKIST StarKist experiencing cost pressures SkipJack Seasonality F08 Expectations ($/ton) � Fish costs now at levels ~$40M over previous 10 year average � Low catch rates F08E � Pricing actions not able to offset recent spike in fish costs � Pricing needed to cover higher costs would result in levels well above those experienced this decade Winter � Do not believe that that recent fish costs 3 Year Avg Seasonality levels reflect a permanent new cost structure � Projecting YOY higher fish costs � Projecting fish costs that track to seasonal trends, including a Fall May Jun Jan Mar Jul Aug Oct Nov Apr Sep Dec Feb declining trend Source: Internal Estimates 14

STABILIZE STARKIST Market strategy to stabilize StarKist Potential Status Timing � Growth and margin driver � Pouch product upgrade ~3 Months Improve Pouch expected in Q2F08 � Value-add product � Innovation pipeline on track ~9 Months orientation Drive Innovation � Tuna usage expansion potential � Margin driver � New label positioning and Now � Value-add product marketing Re-launch � Sequential share gain in orientation Specialty Tuna � Loyal consumer Q1F08 � Volume driver � Moderated merchandising ~6 Months � Center store traffic strategy Stabilize Halves � Grew share in Q1F08 in chunk generator � Primary source of low-cost light halves - first time in 12 Business protein for millions of quarters Americans 15

GO-FORWARD FOCUS Four key areas of focus with action plans in place Addressing Enhancing Drive Value-Added Offset Inflationary and Offset Inflationary and Innovation Other Costs Other Costs Stabilize StarKist Stabilize StarKist Build Share Strength 16

DRIVE VALUE-ADDED INNOVATION Brand driven innovation – key strategic focus Powerful, Branded Platform Opportunity � ~80% of Del Monte’s net sales are branded #1 or #2 � Strong, differentiated equities � Experienced R&D � Strategic focus on priority segments � On-trend businesses Competitive Advantage 17

DRIVE VALUE-ADDED INNOVATION Consumer insights and brand platforms drive scalable innovation Pet Examples Consumer Examples Healthy Snacking Relationship/Lifestyle Consumer Consumer � Portable; Freeze & Eat � Convenient Meals � Interactive Snacks Wholesome Prepared Meals Insights Insights Health & Wellness and Sides � Health-Oriented Snacks � Portable; Heat & Serve � Premium Nutrition Del Monte Meow Mix � Fruit Naturals; Fruit Chillers � Market Select Cups Brand Brand StarKist Milk-Bone Platforms Platforms � Tuna Creations � Steak Chew Nature’s Recipe � Farm Stand Selects Brand based platforms supporting cumulative innovation Business Business � Process Technology � Sourcing Platforms Platforms � Selling � Distribution 18

DRIVE VALUE-ADDED INNOVATION Fruit Chillers Consumer Insights � Benefit Platform – Healthy Snacking � Product Platform – Freeze & Eat Brand Platform: Del Monte Fruit Chillers � Focuses Del Monte brand into healthy but tasty shelf-stable snacks Business Platform Incorporates: � Process Technology – Proprietary blending and sealing technology � Sourcing – Existing � Selling - Existing � Distribution - Existing Size of the Prize Results Size of the Prize Results Single Serve Plastic Fruit Driven ~50% of category growth � � in single serve (past 3 months) Size: ~$800M � Growth: ~14% vs. YAG ~6.4% share with ACV of >86% � � 19 Source: Nielsen Homescan Panel All Outlet Estimates – FY2007