EX-99.1 2 d618134dex991.htm EX-99.1

October 30, 2013 Annual Stockholder Meeting FY 2013 Review Exhibit 99.1

Forward-Looking Statements Some of the statements in this presentation 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 obligation 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 our Forms 10-K and 10-Q and any amendments thereto, describe some of these factors, risks and uncertainties. 2

Agenda 3 JBSS Overview and Strategic Goals Jeffrey Sanfilippo Chairman & CEO Financial Review Mike Valentine CFO & Group President Brand Marketing Howard Brandeisky Sr. VP Global Marketing & Customer Solutions Brand Sales Chris Gardier Sr. VP Consumer Sales Closing Remarks Jeffrey Sanfilippo Chairman & CEO

Diluted EPS Improvement of over 600% Operating Cash flow increased by nearly 400% Net Sales increased by 9% to a record $734 million Time to Celebrate Successful Results over last two years 4 $674,212 $700,575 $734,334

Creating Shareholder Value JBSS Stock Price $13.94 10/24/2012 Stock Price $24.44 10/24/2013 Outperformed the S&P 500 by over 50%! 5 S&P500

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. Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation 6

We are 1,290 people strong! 150 Employees 760 Employees 45 Employees 125 Employees 210 Employees 7

$34 $178 $86 $436 Distribution Channel Diversification (Millions of $) 8 Fiscal 2013 Net Sales $734 Million Commercial Ingredients 24% Contract Pkg. 12% Consumer 59% Export 5%

FY 2013 Consumer Channel FY 2013 Consumer Channel Consumer 59% 9 vs. FY ‘12 Fiscal 2013 Net Sales $436 Million 4.2%

FY 2013 Commercial Ingredients Channel FY 2013 Commercial Ingredients Channel 10 vs. FY ‘12 .7% Commercial Ingredients 24% Fiscal 2013 Net Sales $178 Million

FY 2013 Export Channel FY 2013 Export Channel 11 Fiscal 2013 Net Sales $34 Million Export 5% 1.4% Vs. FY ‘12 $

Contract Packaging 2013 Contract Packaging Channel 2013 Contract Packaging Channel 12 Vs. FY ‘12 12% $ 22.1% Fiscal 2013 Net Sales $86 Million

Corporate Strategies 13 13

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FY 2013 Accomplishments • Fisher Brand delivered double-digit growth over FY ‘12 • Fisher Recipe Nuts expanded distribution and gained market share • Orchard Valley Harvest launched on- the-go packs and gained distribution at key retailers across the country 15

Goal: Build Fisher Recipe Nuts to #1 Market Share Position Nationally 16

How: Investing in Fisher Brand, Service & Production Flexibility 17 FISHER RECIPE NUT $ SALES SHIPPERS & QUARTER PALLET DISPLAYS $4,422,767 $1,042,790 $777,876

Goal: Build Fisher Snack Nuts to #2 Market Share Position in Midwest 18

How: Investing in Fisher Snack Brand to Drive Growth! Fisher Snack Sports Sponsorships and New Products 19

Dominick's Goal: Build Orchard Valley Harvest to Top 5 Market Share Position - Produce Sprouts 20

Coupons Website: www.orchardvalleyharvest.com Social Media Offer Tear Pads Educational Tear Pads In-Store Sampling In-Store Displays Corrugate Shippers Sturdy Display Racks How: Provide Support to Drive Trial & Awareness 21

• Created a geographic-centric sales structure and hired experienced professionals to manage key regions • Partnered with leading international marketing firms to do proprietary research on nut usage and consumption in Asia • Invested in upgrading our Fisher Brand positioning and packaging FY 2013 Accomplishments 22

Goal: Double International Sales by FY2016 A world of opportunity for JBSS to be a leader in health and wellness nut/fruit snacks in key international markets $34 MM $70 MM 23

How: Refresh & Upscale Fisher Brand Internationally 24 • Premium look conveys premium quality • Launched in China … expanding to all International markets Consumer response has been outstanding:

Who: China Retailers 25 Shanghai Fisher in Tibet Beijing 25

Who: Latin America Retailers 26 • Mexico • Dominican Republic • Panama • Colombia Comercial Mexicana Chedraui - Mafer El Rey - Panama Walmart / Superama Fisher “World Table” El Dragon – Santo Domingo Liverpool - Mexico

Who: Europe, Middle East, Africa, Asia Retailers • Russia • U.A.E. • U.K. • Saudi Arabia • South Korea • Malaysia • Japan • Australia 27

FY 2013 Accomplishments • Developed significant product launches with several key customers • Continued to expand our production capabilities and our focus on innovation and consumer insights • Received two major Supplier of the Year customer awards 28

Goal: Be The Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Walmart Supplier of the Year Frito-Lay Supplier of the Year 29

• Reduce Foreign Material Complaints • Customer Quality Scorecards • Stringent Corporate Food Safety Programs • Raw Material Sourcing • Product & Packaging Innovation How: Commitment to Quality, Food Safety, Innovation & Procurement Expertise 30 Almonds, Walnuts, Pecans, Pistachios, Peanuts, Raisins, Cranberries Pecans, Pine Nuts Macadamias Cashews Cashews Macadamias Cashews Cashews Macadamias Hazelnuts Pine Nuts

How: Operational Excellence Setup Reduction 5S Housekeeping Create Flow Quality Balance Flow Visual Management Continuous Improvement Kanban Pull Systems Standard Work Bottlenecks 1 2 Checkers checking the checkers 3 Broken interfaces 4 Unclear roles and responsibilities 5 5 things to look for… The 9 lean principles of process improvements • Competitive Costs • Production Efficiencies • Waste Reduction • Best in Class Cross-Functional Departments 31 31 Duplicate Work

Leading Food Companies and Retailers 32

Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation 33

FY 2013 Financial Milestones 34

JBSS Stockholders’ Equity FYs1991 2013 35 25 32 69 68 76 73 73 78 80 87 94 102 119 181 196 180 163 158 165 180 184 201 215 -

JBSS Net Sales FYs 1991- 2013 Item Rationalization, De-emphasized Commodity Sales, Lower Prices Low Carb Diet Run Up 36

JBSS Total Outstanding Debt FYs 1991- 2013 Facility consolidation Improved operating performance 37 $140 $160 $100 $120 $60 $80 $20 $40 $0 50 76 71 107 107 98 93 118 100 99 89 70 70 19 144 138 148 133 94 99 101 95 74

JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2013 Note: FY 1997 reflects stub year 38 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%

EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of 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. EBITDA 39

Reconciliation of Net Income (Loss) to EBITDA (In $000's) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 NET INCOME (LOSS) 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 INTEREST EXPENSE 4,681 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364 4,754 INCOME TAX (BENEFIT) EXPENSE 9,607 14,468 9,269 (8,689) (7,520) (897) (259) 8,447 (49) 9,099 13,536 DEPRECIATION & AMORTIZATION 11,248 11,190 10,501 10,000 13,584 15,742 15,922 15,825 16,968 17,117 16,717 EBITDA 40,563 51,722 38,267 (8,894) 1,834 19,390 30,226 44,350 26,198 48,702 56,767 NET SALES 419,677 520,811 581,729 579,564 540,858 541,771 553,846 561,633 674,212 700,575 734,334 EBITDA MARGIN (% OF NET SALES) 9.7% 9.9% 6.6% -1.5% 0.3% 3.6% 5.5% 7.9% 3.9% 7.0% 7.7% POUNDS SOLD 250,629 284,576 278,741 248,137 246,142 221,958 217,465 224,302 232,746 212,553 221,762 EBITDA PER POUND SOLD 0.162 0.182 0.137 (0.036) 0.007 0.087 0.139 0.198 0.113 0.229 0.256 40

EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure 41 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $25,000 $30,000 $20,000 $15,000 $10,000 $5,000 $0 -$5,000 -$10,000 -$15,000

EBITDA* Margin (% of Net Sales) 42 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure

EBITDA* Per Pound Sold * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure 43 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 -$0.05 -$0.10

Market prices from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Rolling 4 QTR Gross Margins 44 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 rolling gm cashews 320's almonds nps 25/27 Peanuts pecans jr. mammoth walnuts combo 1/2's & pcs.

Highlights: Q1 2014 vs. Q1 2013 $ Chng. % Chng. Net Sales Sales Volume (lbs. sold) Gross Profit Net Income Earnings Per Share (EPS) Total Debt 45 ’ 7,004 ($ 810) ($ 1,204) ($ 759) ($ 0.08) ($16,920) (.5%) 14.0% (3.9%) (10.1%) (11.4%) (19.6%) (in 000 s except EPS)

FY 2013 Sales & Marketing Update 46

Grow Brands 47 Recipe Nuts Snack Nuts

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Fisher Brand Delivering Double Digit Growth Consumer Channel Pounds (Millions) Gross Revenue ($ Millions) FY ’13 Actual Versus FY’12 FY ’13 Actual Versus FY’12 Fisher Brand 29 +17% $138 +23% 49

50 Easier to scoop Easier to find in the pantry Freshness seal keeps nuts fresh Innovation that meets the needs of the Consumer… Before….

…and the Retailer Easier to Merchandise Reduced Case Count to reduce Inventory Shelf Ready Case to reduce Labor Before…. 51

Celebrity Chef Alex Guarnaschelli in TV Vignettes and Print Building the Fisher Brand with Food Network Sponsorship

Taking Food Network Relationship up a Notch in FY 2014! Fisher Recipe Contest with Alex Guarnaschelli as the Final Judge! Extending Social Media Integration 53

We extend our reach through Print that reaches our Core Consumer 54

Get Free! Buy 2 Winning In-Store with Displays! Karo Tie-in leads to 7X increase in “Pounds on the Floor” 55

Our Strong Consumer and Retailer Program is driving Distribution Gains… 56 Recipe Nuts

…and Market Share Gains among Branded Recipe Nuts 57 Source : Nielsen scantrack data 4 week periods 7/7/12 to 9/28/13 70% 60% 50% 40% 30% 20% 10% 0% June ‘12 July ‘12 Aug ‘12 Sept ‘12 Oct ‘12 Nov ‘12 Dec ‘12 Jan ‘13 Feb ‘13 March ‘13 April ‘13 May ‘13 June ‘13 July ‘13 Aug ‘13 Sept ‘13 Oct ‘13 Fisher Recipe Nuts LB Sales % Change vs. Last Year

Growing Fisher Snack by getting the Fundamentals Right… New Products Coupon Support In-Store Merchandising 58

…driving Distribution Gains 59 Snack Nuts

Fisher Website & Mobile Site Pinterest Email Newsletter Facebook Twitter Party & Blogging Building relationships with consumers with overarching Fisher Brand Support 60

Vehicle 2013FY Vs. YAG Website Visitors +187% E-Mail Subscribers +29% Facebook Fans +63% Pinterest Followers 100% …and Getting Great Results! 61

Pure and Simple Goodness 62

63 Consumers want to know what’s in their food Consumers want products that fit their active lifestyle Consumers are more proactive about health & wellness Three Key Consumer Trends

•Fresh •Pure & Simple •From the Earth •Natural •Authentic 64 Orchard Valley Harvest Delivers

Orchard Valley Harvest Delivers 65

Core Line of “Take Home” Bags Health & Wellness Mixes Convenience Packs A Differentiated Assortment 66

Building Distribution (Bulk only) BREAUX Markets 67

Free Standing Inserts Website: www.orchardvalleyharvest.com Social Media Offer Tear Pads Educational Tear Pads In- Store Sampling In-Store Displays Corrugate Shippers Display Racks Building the 68 Brand

Building Distribution (Bulk only) BREAUX Markets Updated: 10.19.13 69

Closing Comments 70 70

IMF Statistics

Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer. 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. Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation 74

647 W. Division Street Chicago, IL 75 From Humble Beginnings….

Celebrating 50 Years of Leadership 76

Front Entrance off Busse Rd. Side Entrance off Devon Jasper Sanfilippo Matt Valentine Elk Grove Village Headquarters 1982 – 2007

Front Entrance Busse Rd. Side Entrance off Devon Same Location Today… End of an Era 78

We’ve come a long way thanks to you! 79

80 International Nut Congress May 23 rd , 2013 Golden Nut Award Jasper Sanfilippo Sr.

Chairman Emeritus Jasper B. Sanfilippo Sr. 81

THANK YOU