Oil-Dri Corporation of America East Coast IDEAS Conference June 23, - - PowerPoint PPT Presentation

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Oil-Dri Corporation of America East Coast IDEAS Conference June 23, - - PowerPoint PPT Presentation

Oil-Dri Corporation of America East Coast IDEAS Conference June 23, 2020 Cautionary Statements Regarding Forward-Looking Information Except for the historical information contained herein, certain of the matters discussed in this communication


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Oil-Dri Corporation of America East Coast IDEAS Conference

June 23, 2020

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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,

  • r otherwise.

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Introduction

Daniel S. Jaffee

President & Chief Executive Officer

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Unlocking the Value of Lightweight Litter

Jessica Moskowitz

VP, General Manager Consumer Products Division

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Strong YTD Growth Across Product Portfolio

Cat’s Pride Private Label Jonny Cat

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Oil-Dri is Positioned to Win with Pet Parents

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Creating value through vertical integration Elevating product quality and packaging Decades of doing good for pets and pet parents

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Creating value through vertical integration

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  • Mined in CA, MS, IL, and GA
  • Oil-Dri’s locations in each region

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lbs/ft3

  • Mined in SD and WY

Heavyweight Clay

(Sodium Bentonite)

70

lbs/ft3

Same Uses – Less Weight

Lightweight Clay

(Calcium Bentonite)

Chicago HQ + Innovation

Taft

Ripley Ochlocknee Blue Mountain Mounds

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Creating value through the power of Lightweight

Value for our Pet Parents Value for our Environment

Private Label Lightweight Litter

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Elevating our Packaging and Products

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Elevating Quality of Product Portfolio

TRIPLE ODOR PROTECTION

URINE, FECES, & AMMONIA

HYPOALLERGENIC

BACTERIAL ODOR CONTROL

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Focus on Growth Channels and E-Commerce

E-Commerce Channel up over 70% YTD 2020 through Q3

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Decades of Doing Good for Shelters in Need

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Improving livestock health and productivity through sorbent minerals

Flemming Mahs

President, Amlan International

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Developing solutions that support livestock growth the way nature intended.

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Thermal Activation Technology

Oil-Dri Mineral Mineral Post Activation Chemically Bound Bacterial Toxin Sheet-like Layer of Activated Mineral Opal Lepispheres

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Our Opportunity

Global trend to reduce antibiotic growth promoters Growing demand for animal protein produced following ‘No Antibiotics Ever’ practices Proven solution utilizing patented technology

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$0.47B

Animal Health

MARKET Amlan

Feed Additive

MARKET $1.1B 3.0% 0%

$15B $32B

Poultry

Source: 2019 Annual Feed Survey

Market Share Amlan Market Share Mycotoxin Control In Feed Antibiotic

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Current Offices Existing Distribution Points

Building Our Global Market Share

Adding Teammates Adding Offices

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For more information, please visit:

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Financial Results

Susan Kreh

Chief Financial Officer

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Net Sales (millions)

$162 $173 $186 $188 $205 $212 $232 $236 $219 $227 $241 $251 $266 $261 $262 $262 $266 $277 $218 $100 $150 $200 $250 $300

CAGR 3.2% (FY 02 - FY 19)

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9 mos. 4/30/19 $207

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Tons Sold (thousands)

1028 1022 1032 990 1014 982 1026 967 899 869 844 821 877 836 795 767 742 758 584 300 500 700 900 1100 566

CAGR -1.8% (FY 02 - FY 19)

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9 mos. 4/30/19

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Net Sales Per Ton

$158 $169 $180 $190 $202 $216 $226 $244 $244 $261 $285 $305 $304 $313 $330 $342 $359 $365 $374 $100 $200 $300 $400

CAGR 5.0% (FY 02 - FY 19)

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Gross Profit Per Ton

$30 $35 $42 $41 $38 $47 $45 $51 $55 $58 $70 $81 $68 $72 $97 $96 $97 $87 $103 $25 $40 $55 $70 $85 $100 $115

CAGR 6.5% (FY 02 - FY 19)

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Paid Dividends Per Share

$0.36 $0.36 $0.39 $0.43 $0.47 $0.48 * $0.52 $0.56 $0.60 $0.64 $0.68 $0.72 $0.76 $0.80 $0.84 $0.88 $0.92 $0.96 $1.00 $0.10 $0.30 $0.50 $0.70 $0.90 $1.10

CAGR 5.8% (FY 02 - FY 20)

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*On June 6, 2006, ODCA Board of Directors announced a 5:4 stock split of all Common and Class B stock. Dividends paid in FY07 and beyond include the increased number of shares outstanding as a result of the split.

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ODC Closing Share Price (As of July 31)

$6.00 $9.56 $13.11 $14.42 $15.98 $16.68 $17.22 $15.75 $21.88 $20.69 $21.93 $31.86 $29.17 $26.26 $37.45 $41.36 $42.50 $35.43 $37.39*

$5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00

CAGR 11.0% (FY 02 - FY 19)

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*As of April 30, 2020

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Earnings Per Share

  • $0.16

$0.43 $0.68 $0.88 $0.73* $1.09 $1.25 $1.33 $1.30 $1.26 $0.85 $2.07 $1.17 $1.59 $1.87 $1.47 $1.11 $1.67 $1.69

  • $0.50

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50

CAGR 8.8% (FY 03 - FY 19)

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*On June 6, 2006, ODCA Board of Directors announced a 5:4 stock split of all Common and Class B stock. FY02 – FY05 share counts have been restated to reflect the stock split.

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Outstanding Debt (millions)

$34.3 $31.4 $27.4 $23.3 $35.2 $31.2 $27.1 $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 $40.0

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Closing Remarks

Daniel S. Jaffee

President & Chief Executive Officer

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Contact Information

www.oildri.com

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Investor Relations

Leslie Garber Manager, Investor Relations (312) 706-3299 InvestorRelations@oildri.com

Corporate Office

410 N. Michigan Avenue Suite 400 Chicago, IL 60611 (312) 321-1515