NASDAQ: JBSS November 1, 2018 1 Agenda JBSS Overview and Results - - PowerPoint PPT Presentation

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NASDAQ: JBSS November 1, 2018 1 Agenda JBSS Overview and Results - - PowerPoint PPT Presentation

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NASDAQ: JBSS November 1, 2018 1 Agenda JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO FY 2018 Financial Milestones - Mike Valentine CFO & Group President Brand Marketing Overview - Howard Brandeisky Sr. VP

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SLIDE 1

November 1, 2018

NASDAQ: JBSS

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SLIDE 2
  • JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO
  • FY 2018 Financial Milestones - Mike Valentine CFO & Group President
  • Brand Marketing Overview - Howard Brandeisky Sr. VP Global Marketing

& Customer Solutions

  • FY 2019 Strategic Plan - Jeffrey Sanfilippo Chairman & CEO
  • Closing Remarks - Jeffrey Sanfilippo Chairman & CEO

Agenda

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SLIDE 3

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 in our business and the markets in which we operate. In some cases, you can identify forward-looking statements by the use of words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “forecast,” “predict,” “propose,” “potential” or “continue” or the negative of those terms or other comparable terminology. These statements represent our present expectations or beliefs concerning future events and are not guarantees. Such statements speak only as of the date they are made, and we do not undertake any

  • bligation to update any forward-looking statement.

We caution that forward-looking statements are qualified by important factors, risks and uncertainties that could cause actual results to differ materially from those in the forward- looking

  • statements. Our periodic reports filed with the Securities and Exchange Commission, including
  • ur Forms 10-K and 10-Q and any amendments thereto, describe some of these factors, risks

and uncertainties.

Forward-Looking Statements

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SLIDE 4

4

Consistent Success Over Past 6 Fiscal Years

Diluted EPS Increased by 43% from FY 13 to FY 18 Net Sales increased by approximately 21% from FY 13 to FY 18

1.98 2.36 2.61 2.68 3.17 2.83 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Diluted EPS FY 13 - FY 18

$650,000 $700,000 $750,000 $800,000 $850,000 $900,000 $950,000 $1,000,000 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Net Sales FY 13 - FY 18

$888,595

(In $,000’s)

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SLIDE 5

Yield based on average yearly stock price. 2018 through 10/17

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$0.50 $0.55 $1.00 $1.50 $1.50 $2.00 $5.00 $2.00 $2.00 6.9% 7.0% 5.2% 4.1% 8.8% 3.9% 3.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2012 2013 2014 2015 2016 2017 2018

CASH DIVIDENDS PAID BY CALENDAR YEAR

Regular Dividend Special Dividend Yield

We Return Cash to Our Shareholders

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SLIDE 6

FY 2018 RESULTS

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SLIDE 7

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SLIDE 8
  • Fisher recipe nuts maintained branded market share

leadership and expanded retail distribution

  • Orchard Valley Harvest revenue grew 65% due to new

product introductions and new customers in the Consumer Distribution Channel

  • Fisher snack launched “Oven Roasted, Never Fried”

snack nut line of products

FY 2018 Accomplishments

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SLIDE 9
  • Won Trail Mix Business Award at key Mass Merch

customer

  • Introduced new items at key Contract Manufacturing

customers

  • Grew Cashew Butter Business

FY 2018 Accomplishments

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SLIDE 10
  • Acquisition of Squirrel Brand and Southern Style Nuts

expanded our presence in Club, Airlines and Foodservice venues

  • Expanded branded Club presence with OVH Glazed Pecan

Salad Toppers

  • Launched branded portfolio on Amazon and created brand

stores for consumers

  • Expanded distribution in health care and colleges/university

bookstores

FY 2018 Accomplishments

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SLIDE 11

Fiscal 2018 Net Sales $889 Million

Business Channel Diversification

(Millions of $) 11

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SLIDE 12

Fiscal 2018 Net Sales $590 Million

FY 2018 Consumer Channel

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11.2%

  • vs. FY 17
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SLIDE 13

Fiscal 2018 Net Sales $154 Million FY 2018 Commercial Ingredients Channel

  • vs. FY 17
  • 6.4%

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Commercial Ingredients 17%

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SLIDE 14

FY 2018 Contract Packaging Channel

Fiscal 2018 Net Sales $145 Million

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  • vs. FY 17
  • 4.6%

Contract Packaging 16%

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SLIDE 15

NUT CATEGORY REVIEW

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SLIDE 16

$4.63 $5.24 $5.54 $5.62 $5.85 $6.07 $6.01 $6.05

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Price Per Pound

Nut Commodity Prices Up Slightly in FY 18

Source: IRI: Nut Category – Multi Outlet Geography Time Periods: Total FY 11 Year Ending 7/3/11 to FY 2018 data ending 6/24/18

1% increase in FY 18, with a +4% average annual increase since FY 11 16

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SLIDE 17

7% 3% 1% 0% 0% 0%

  • 5%
  • 6%

CASHEW MACADAMIA NUT WALNUT MIXED NUT PECAN PEANUT ALMOND PISTACHIO

% Increase (Decrease) in Price Per Pound Since FY 17

Retail Prices Up Across Cashews, Macs and Walnuts

Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 2018 data ending 6/24/18

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SLIDE 18

4,771 5,305 5,659 5,908 6,120 6,261 6,280 6,425

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Category $ Sales (M)

Steady Category Revenue Growth

1,030 1,014 1,022 1,051 1,046 1,031 1,044 1,062 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Category Pound Sales (M)

Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 11 Year Ending 7/3/11 to FY 2018 data ending 6/24/18

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SLIDE 19

FY 2018 FINANCIAL MILESTONES

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$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In millions of $

9.0% CAGR over 26.5 Years

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JBSS Stockholders’ Equity FY 1991-2018

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SLIDE 21

$0 $200 $400 $600 $800 $1,000 $1,200

1991 1992 1993 1994 1995 1996 1997 (6 MO) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Increased Pound Volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up

$889 million

In millions of $

Decreased prices and volume

6.6% CAGR over 26.5 Years

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JBSS Net Sales FYs 1991-2018

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SLIDE 22

$0 $20 $40 $60 $80 $100 $120 $140 $160 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In millions of $

Facility Consolidation Project 55% decline in total debt since 2007

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JBSS Total Outstanding Debt FYs 1991-2018

Acquisition of Squirrel Brand

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SLIDE 23

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0%

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JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2018

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SLIDE 24

EBITDA

EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement

  • f

financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from operations. EBITDA is presented solely as a supplemental disclosure because management believes that it is important in evaluating JBSS's financial performance and market

  • valuation. In conformity with Regulation G, a reconciliation of EBITDA

to the most directly comparable financial measures calculated and presented in accordance with GAAP is presented in the following slide.

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SLIDE 25

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Reconciliation of Net Income to EBITDA

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 (in $,000's) NET INCOME 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 36,125 32,420 INTEREST EXPENSE 7,646 5,653 6,444 5,364 4,754 4,354 3,966 3,492 2,910 3,463 INCOME TAX EXPENSE (BENEFIT) (259) 8,447 (49) 9,099 13,536 13,545 15,559 16,067 18,013 16,850 DEPRECIATION / AMORTIZATION 15,922 15,825 16,968 17,117 16,717 16,278 16,284 16,585 15,559 15,430 EBITDA

30,226 44,350 26,198 48,702 56,767 60,464 65,114 66,539 72,607 68,163

NET SALES 553,846 561,633 674,212 700,575 734,334 778,622 887,245 952,059 846,635 888,595 EBITDA MARGIN (% OF NET SALES) 5.5% 7.9% 3.9% 7.0% 7.7% 7.8% 7.3% 7.0% 8.6% 7.7% POUNDS SOLD (000'S) 217,465 224,302 232,746 212,553 221,762 240,417 253,514 270,144 260,123 268,944 EBITDA PER POUND SOLD 0.139 0.198 0.113 0.229 0.256 0.251 0.257 0.246 0.279 0.253

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SLIDE 26

* EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income to EBITDA” for reconciliation to GAAP measure

(in $ thousands)

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EBITDA Trends*

  • 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

EBITDA

0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

EBITDA PER POUND SOLD

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SLIDE 27

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PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %

0.0% 1.5% 3.0% 4.5% 6.0% 7.5% 9.0% 10.5% 12.0% 13.5% 15.0% 16.5% 18.0% 19.5% 21.0% 22.5% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 rolling 4Q gm% cashews 320's almonds nps 25/27 peanuts jumbo runners pecans fcy. jr. mammoth 1/2's walnuts combo 1/2's & pcs.

Source: JBSS quarterly market survey of vendors and brokers

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FY 2018 BRAND MARKETING OVERVIEW

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SLIDE 29

Snack Nuts

Grow Brands

Recipe Nuts

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SLIDE 30

Recipe Nuts

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Fisher Recipe Slight Decline in Dollars and Flat in Pounds for FY 2018

Total Fisher Recipe Brand Growth FY 18 vs. FY 17 DOLLAR NET SALES POUND SALES

Source: JBSS shipment data 52 week versus 52 week comparison Fisher Recipe Category only.

Recipe Nuts

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(2)% FLAT

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Fisher Recipe Market Share Almost Flat in FY 2018, but Up +11 Pts since FY 2013

15.6% 18.0% 20.1% 22.7% 26.7% 26.6% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Fisher Recipe Pound Share Total US MULO

Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2018 Data Ending 6/24/18

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SLIDE 33

Fisher Recipe Continued to Expand Distribution in FY 2018

New distribution at Meijer Stores New distribution at Publix Stores

33 44% 47% 47% 55% 59% 65% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FISHER RECIPE ACV (All-Commodity Volume) TOTAL US MULO

Recipe Nuts

Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2013 - 2018 Data Ending 6/24/18

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SLIDE 34

National Distribution

Hawaii Updated 8.18.18

Recipe Distribution

Fisher Recipe has Strong Distribution Nationally

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Continue to Build Fisher Brand Equity with Food Network Sponsorship

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Strong Social and Digital Support to Engage Consumers

Influencer Marketing Social Media and Web

Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network

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SLIDE 37

In-store Support to Drive Purchases

Displays Aisle Blades

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SLIDE 38

Snack Nuts

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Fisher Snack Increase in Both Dollars and Pounds in FY 18

Total Fisher Snack Growth FY 18 vs. FY 17 Snack Nuts

Source: JBSS shipment data 52 week versus 52 week comparison Fisher Snack Category only.

DOLLAR NET SALES

4%

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POUND SALES

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SLIDE 40

0.63% 0.62% 0.67% 0.61% 0.67% 0.64% 0.00% 0.25% 0.50% 0.75% 1.00% FY13 FY14 FY15 FY16 FY17 FY18

FISHER SNACK NATIONAL POUND SHARE

FISHER SNACK NATIONAL LB SHARE

Fisher Snack Market Share has been Flat Since FY 13

Source: IRI: Total Snack Nut Category – Multi Outlet Geography –Periods: FY 13 to FY 18 data ending 6/24/18.

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Exciting, Differentiated New Product Launch in FY 18

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Strong Marketing Support to Communicate the Key Point of Difference

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Digital / Social & Print IN STORE Radio Sampling

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Continued In-Stadium Marketing Support

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Pure and Simple Goodness

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Continued Strong Dollars and Pound Growth for Orchard Valley Harvest in FY 18

Orchard Valley Harvest Growth FY 18 vs. FY 17

+64% +65%

DOLLAR NET SALES POUND SALES

Source: JBSS shipment data 52 week versus 52 week comparison. Includes Orchard Valley Harvest brand

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Increasing Share Growth for Orchard Valley Harvest Over the Last 2 Fiscal Years

Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2018 data ending 6/24/18

0.6% 0.6% 0.8% 0.6% 0.8% 1.3%

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

OVH POUND SHARE TOTAL US MULO ORCHARD VALLEY HARVEST

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SLIDE 47

Resulting in Orchard Valley Harvest being the

Fastest Growing Brand in Nuts!

% Change Total Dollars

63%

  • Source: IRI – MULO Latest 52 weeks 6/24/18 versus prior

year 14% 10%

  • 1%
  • 7%
  • 8%
  • 13%
  • 26%

ORCHARD VALLEY HARVEST PRIVATE BRAND WONDERFUL BLUE DIAMOND FISHER EMERALD PLANTERS DIAMOND

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14% 19% 33% 37% 38% 46%

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

OVH ACV TOTAL US MULO

OVH ACV 48

Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 13 Year Ending 6/30/13 to FY 2018 data ending 6/24/18

OVH Continues to Enjoy Steady Distribution Growth

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SLIDE 49

BREAUX Markets

1 1 2 2

National Distribution

Updated 8.18.18

Orchard Valley Harvest Establishing National Distribution

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Orchard Valley Harvest Multi - Packs Capitalize on 4 Key Platforms

Wellness Indulgent Core Snack Salad Toppers

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Social Media and Digital Support to Engage Consumers

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In-Store Support to Drive Purchases

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We Welcome the Newest Members of the JBSS Family

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Squirrel Acquisition is a Strong Fit with Our “Expand Consumer Reach” Strategic Pillar

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Expanding eCommerce Presence

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SLIDE 56

Social Media Marketing Engages Consumers and Drives Awareness

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Southern Style Nuts has Strong Equity in Hunter Mix Items

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FY 2019 STRATEGIES AND CLOSING COMMENTS

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GROWTH DRIVERS

  • 1. Expand distribution

with existing customers

  • 2. Increase sales

velocity

  • 3. Gain new customers
  • 4. Launch new

products

  • 5. Mergers &

Acquisitions FY2019 Plan Consumer Commercial Ingredients Contract Packaging HEADWINDS & TAILWINDS

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JBSS Strategies & Market Forces

Resources & Structure Competitive Landscape Supply Chain Dynamics Consumption Trends Talent & Retention

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SLIDE 60

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Snack Nuts

Grow Brands

Recipe Nuts

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SLIDE 62

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Maintain Fisher Recipe #1 Market Share Position Nationally by Expanding Distribution

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SLIDE 63

Updated 8.18.18

Snack Distribution

Reposition Fisher Snack and Expand Distribution Nationally

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We’re Taking Orchard Valley Harvest “On the Go”

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Drive Orchard Valley Harvest Growth with New Platforms like Salad Toppers

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Expanding Distribution with Innovative New Products

Recipe Nuts Snack Nuts

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Expanding Consumer Reach Across All JBSS Brands

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Foodservice Club Stores Convenience Store Travel eCommerce

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Operational Excellence Quality / Regulatory Commodity Expertise

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Be Preferred Partner to Build Profitable Volume

  • f Value-Added Nuts & Snacks
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SLIDE 69

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This Team Will Drive Results

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JBSS 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 a dynamic infrastructure that maximizes the potential of our brands, people and processes.

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JBSS

5 Year Share Price Comparison

$24.58 to $63.06 = +157%

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Source: NASDAQ 5 year chart 10/31/18 $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00

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Thank You

We Look Forward to a Successful FY 2019

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