EX-99.1 2 d18690dex991.htm EX-99.1

INVESTOR PRESENTATION August 27, 2015 NASDAQ: JBSS Exhibit 99.1 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

3 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 stockholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of our brands, people and processes. Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation Our Corporate Mission and Core Values Mission Core Values

We Are a Leader In The Nut Industry Net sales of $887m in Fiscal 2015 Stock Symbol: JBSS (Nasdaq) One of the largest nut processors in the world State-of-the-art shelling and processing facilities Procurement expertise with buyers averaging over 20+ years experience Product, packaging and branding innovation Quality-driven manufacturing process 4

OVH Positioning What Makes Us Different? Closest to The Source Integrated Nut Processor – From Source to Customer 5 Direct Sourcing Enhances stability and quality of supply Shelling Reduces costs for basic processing Cold Storage Prolongs freshness and shelf life Processing Meets a wide array of customer demands

Our Facilities Are Strategically Located Walnuts Pecans Peanuts Pecans Pecans Pecans Pecans Peanuts Pecans Peanuts Pecans Peanuts Pecans Peanuts Peanuts Pecans Peanuts Pecans Peanuts Pecans Peanuts Pecans U.S. Nut Growing Areas JBSS Facility Gustine, CA Selma, TX Elgin, IL Bainbridge, GA Garysburg, NC 6 Pecans

World Class Facility in Elgin, IL 1 Million Square Feet Comprehensive Allergen Prevention Programs Robust Quality Systems Organic Certification 7

Gustine, CA 131 Employees Garysburg, NC 47 Employees Bainbridge, GA 129 Employees Selma, TX 173 Employees Elgin, IL 951 Employees 8 Our People - Our Commitment - Our Passion

HACCP Programs SQF Level 2 Certified High ratings from third party audits Allergen Cross-Contamination Prevention Programs validated with ELISA testing Integrated Pest Management Programs Equipment Sanitation Programs Validated with ATP Testing Environmental Monitoring Programs – Zone method Key Quality Performance Indicators (KPI’s) Food Safety and Quality 9

Computerized Data System (Infinity) Comprehensive Recall Program Tested Twice/Annually through Mock Recall exercises Employee Training Programs utilizing Alchemy interactive courseware GMPs, Allergens, HACCP, Food Defense, and prerequisite programs Continuous Review of Operational Methods, Personnel Practices and Adequacy of the Food Safety Program Five S Program Implementation - Productivity, Quality and Safety Improvements Food Defense Program 10 Food Safety and Quality

We Are Experts In Every Nut Type % of total FY 15 net sales * other consists of trail and snack mixes which include nut products 11 Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique product formulas Fiscal Year 2015 23.4% 12.7% 12.0% 13.7% 11.0% 22.0% 5.2% ALMOND PECAN SNACK AND TRAIL MIXES PEANUT WALNUT CASHEW &MIXED NUT ALL OTHER

SALES CHANNEL UPDATES Export Commercial Ingredients Contract Manufacturing Consumer 12

Multiple Distribution Channels 13 * Approximately 32% of the Consumer channel sales were Fisher brand sales $887 mil Net Sales in Fiscal 2015 Net Sales by Channel Consumer $529m Com. Ingred. $207m Contract Mfg. $115m Export $ 36m TTL JBSS $887m Consumer * - 60% Commercial Ingredient - 23% Contract Mfg. - 13% Export - 4%

Consumer Channel $529 mil Net Sales in Fiscal 2015 +16.7%* * Net sales growth versus FY 2014 14

Commercial Ingredients Channel $207 mil Net Sales in Fiscal 2015 +7.3%* * Net sales growth versus FY 2014 15

Export Channel $36 mil Net Sales in Fiscal 2015 +6.0%* * Net sales growth versus FY 2014 16

Contract Manufacturing Channel $115 mil Net Sales in Fiscal 2015 17 +17.0%* * Net sales growth versus FY 2014

We Reach Consumers… 20+ Points of Distribution In-Store 18

John B. Sanfilippo & Son, Inc.: Transformed Consumer Products Company … Reproduced with permission of Snack Food & Wholesale Bakery magazine 19

FY 2015 FINANCIAL MILESTONES

Time to Celebrate Success Results Over The Past Four Years Diluted EPS +11% over FY 14 … Record $2.61 Net Sales +14% over FY 14 ... Record $887.2 mil 21 887,245 650,000 700,000 750,000 800,000 850,000 900,000 FY 12 FY 13 FY 14 FY 15 Net Sales FY 12 - FY 15 1.58 1.98 2.36 2.61 FY 12 FY 13 FY 14 FY 15 EPS FY 12 - FY 15

Russell 2000 JBSS 22 Creating Shareholder Value Stock Price $28.43 8/19/2014 Stock Price $48.30 8/19/2015 Outperformed the Russell 2000 Index by over 5,600 BPS’

23 JBSS Stockholders Equity FY 1991-2015 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275

Low Carb Diet Run Up SKU Rat., De-emphasized Industrial Sales, Lower Prices Increased Lb. Volume and Prices 24 JBSS Net Sales FY 1991-2015 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000

Facility consolidation project 25 JBSS TTL Outstanding Debt FY 1991-2015 Improved Operating Performance $0 $20 $40 $60 $80 $100 $120 $140 $160

Note: FY 1997 reflects stub year 26 JBSS TTL Outstanding Debt as % of Net Sales 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 27

Reconciliation of Net Income (Loss) to EBITDA (In $ $000's) FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 NET INCOME (LOSS) 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 INTEREST EXPENSE 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966 INCOME TAX (BENEFIT) EXPENSE 9,269 (8,689) (7,520) (897) (259) 8,447 (49) 9,099 13,536 13,545 15,559 DEPRECIATION & AMORTIZATION 10,501 10,000 13,584 15,742 15,922 15,825 16,968 17,117 16,717 16,278 16,284 EBITDA 38,267 (8,894) 1,834 19,390 30,226 44,350 26,198 48,702 56,767 60,464 65,114 NET SALES 581,729 579,564 540,858 541,771 553,846 561,633 674,212 700,575 734,334 778,622 887,245 EBITDA MARGIN (% OF NET SALES) 6.6% -1.5% 0.3% 3.6% 5.5% 7.9% 3.9% 7.0% 7.7% 7.8% 7.3% POUNDS SOLD 278,741 248,137 246,142 221,958 217,465 224,302 232,746 212,553 221,762 240,417 253,514 EBITDA PER POUND SOLD 0.14 (0.04) 0.01 0.09 0.14 0.20 0.11 0.23 0.26 0.25 0.26 28

EBITDA* 29 -$20,000 -$10,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure

EBITDA* Margin (% of Net Sales) -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net (Loss) Income to EBITDA” for reconciliation to GAAP measure 30

Source: Spot market prices from survey of JBSS vendors and brokers 31 PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %

NUT CATEGORY TRENDS

Retail Prices Over the Last 6 Years 33 +29% $4.53 $5.84 FY 2010 FY 2015 Price Per Pound Source: IRI: Total Nut Category – Multi Outlet Geography

Retail Prices Up Across All Nut Types over the Last 6 Years Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15 34 70.1% 60.0% 38.9% 35.8% 31.7% 30.4% 30.3% 22.2% 14.1% PISTACHIO WALNUT MACADAMIA NUT MIXED NUT CASHEW ALMOND PECAN PINE NUT PEANUT % Increase in Price Per LB Over the Past 6 Years

Strong Nut Category Growth 35 959 974 961 971 1,003 1,043 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Category LB Sales (M) 4,350 4,578 5,105 5,457 5,704 6,096 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Category $ Sales (M) Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15

CORPORATE STRATEGIES

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Fisher recipe nuts market share growth, now the #1 brand nationally (4 wks. ending 8/9/15). Fisher snack nuts market share growth in high franchise Midwest. Orchard Valley Harvest expanded distribution and increased velocity resulting in double-digit revenue growth over FY14. FY 2015 Accomplishments 38

Launched Fisher Flagship Store on Tmall (China); Developed a Fisher stand-up bag product line for China. 39 FY 2015 Accomplishments

Leveraged our innovation capabilities to launch 15 new items for our key contract manufacturing customers. Optimized Food Service and Industrial Ingredient customer and product portfolios. Expanded Fisher brand awareness in the Commercial Ingredients Channel. 40 FY 2015 Accomplishments

FY 2015 SALES AND MARKETING UPDATE

Recipe Nuts Snack Nuts Grow Brands 42

Fisher Snack & Recipe are Growing Total Fisher Brand Growth FY15 vs. FY14 +8.0% +14.0% Recipe Nuts Snack Nuts LB SALES DOLLAR SALES 43

Fisher Brand has Grown Dollar Share over the last 3 Years 2.5 2.9 3.1 3.4 FY 2012 FY 2013 FY 2014 FY 2015 Fisher Brand Dollar Share Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/28/15 44

Strong and Sustained Growth on Fisher Recipe Nuts Recipe Nuts 44 Consecutive Quad wks of growth 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Fisher LB % Change vs. Last Year Source: IRI: Total Nut Category – Multi Outlet Geography – Quad Week Data Ending 7/12/15 45

Differentiating Versus Competition with “No Preservatives” Message 46

Recipes Food Network Vignettes Digital and Mobile Recipe Contest Food Network Magazine Social Media and PR Building Fisher Brand Equity with Food Network Sponsorship 47

Expanding Social Media Presence with “Fisher Fresh Thinkers” 48

Winning the year is about Pounds-on-the-floor Recipe Nuts Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography –Year Ending 6/28/15 *Note: ACV refers to “All Commodity Volume” as measured by IRI 49 27 37 41 41 FY 2012 FY 2013 FY 2014 FY 2015 Fisher % ACV Any Display

We Are Growing our Pound Share in High Franchise Markets Snack Nuts Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/28/15 2.2 3.1 3.5 4.0 FY 2012 FY 2013 FY 2014 FY 2015 Fisher Snack Nuts Pound Share (High Franchise Markets) 50

Our Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets 51 Snack Nuts

Source: Blue Chip Worldwide SPARQ concept research, December 2013 Driving Results on our Core Dry Roast Peanut Business “Oven Roasted, Never Fried” communication drives purchase interest Elevates taste and healthy snack perceptions Supported through FSIs, In-Store and via Digital Channels 52

Brand Positioning on Nut Exactly is Creating A Strong Consumer Following Snacking Yogurt/Veggies Popcorn Nuts Chips Candy Bars New Segment: Lighter than nuts, more substantial than popcorn Indulgent Healthier 53

Coupon incentive vehicle Marketing Support is Designed to Build Consumer Awareness and Drive Trial PR Media Outreach Facebook Twitter Consumer receives sample via mail 54

Retailers Like our New Snacking Concept Too 55

56 Our Orchard Valley Harvest Brand is On-Trend with Today’s Consumer Pure & Simple Goodness Supports a healthy lifestyle Close to the earth

The Brand Consumers Trust for Pure & Simple Goodness 57

OVH is Catching on With Consumers Orchard Valley Harvest Growth FY15 vs. FY14 +33% +48% LB SALES DOLLAR SALES 58

Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day. Grab ‘n Go Mini’s Multi-Packs 59 We’re Tapping into Consumers’ Need For on-the-go Goodness

Bloggers Ibotta Website PR In-Store Merchandising New Packaging 60 Impactful Marketing Support

*Note: % ACV refers to % “All Commodity Volume” as measured by IRI 61 And, We’re Gaining Retailer Support 12.7 13.6 18.6 32.3 FY2012 FY2013 FY2014 FY 2105 Orchard Valley Harvest % ACV Distribution* OVH % ACV Source: IRI: Ttl Produce Nut Category – Total US Food Geography–Year Ending 6/28/15

THANK YOU