THS Treehouse Foods 2013 Investor Day Presentation
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Transcript of THS Treehouse Foods 2013 Investor Day Presentation
8/20/2019 THS Treehouse Foods 2013 Investor Day Presentation
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Monday, November 18, 2013
PLMA Investor Day
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Forward-looking Statements
2
This resentation may !ontain "#orward-looking statements$% These statements re#le!t the&omany's e(e!tations or belie#s !on!erning #)t)re events that involve risks and )n!ertainties$*ltho)gh the &omany believes that the e(e!tations re#le!ted in s)!h #orward-looking
statements are reasonable, it !an give no ass)ran!e that s)!h e(e!tations will rove to have been!orre!t$ The &omany dis!laims any intention or obligation to )date or revise any #orward-looking statements, whether as a res)lt o# new in#ormation, #)t)re events or otherwise$ These#orward-looking statements may !ontain the words "believe,% "anti!iate,% "e(e!t,% "estimate,%"ro+e!t,% "will be,% "will !ontin)e,% "will likely res)lt,% or other similar words and hrases$Forward-looking statements and the &omany's lans and e(e!tations are s)b+e!t to a n)mber o#risks and )n!ertainties that !o)ld !a)se a!t)al res)lts to di##er materially #rom those anti!iatedand the &omany's b)siness in general is s)b+e!t to !ertain risks, in!l)ding, b)t not limited to, therisks identi#ied in the &omany's Form 10- #iling #or the year ended .e!ember 31, 2012 andForm 10-/ #ilings on #ile with the S&$ o) may get these do!)ments #or #ree by visiting .* onthe S& 4eb site at www$se!$gov or on o)r website www$treeho)se#oods$!om )nder the "5nvestor
elations% se!tion$
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The Evolution of Private Label
Sam $ eedChairman, President & CEO
3
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DestinationBrands
6rivate 7abel Family Tree
Own Brands
Generic
Premium Tiers
Private Label
Commodity
Value Added
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9istori! Milestones
:
18;< The reat *=6 &omany
1<1: >$S$ .istri!t &o)rt
1<28 Marks = Sen!er
1<8 7oblaws
1<88 S)er!enter
1<<3 Sa#eway
200: NS?T9S
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vol)tionary For!es
The nd o# an ra@
A etail &onsolidation
A Ni!he Marketing
A 9ome &ooked Assembled MealA 5n#ormation Te!hnology
A Millennial &ons)mer
@The .awn o# a New *ge
;
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B83B8C B<3
B<8B10
B112
B120B12;
B133
1:$8D
1;$:D
1C$1D
1C$;D 1C$CD 18$0D
18$3D18$:D
18$8D
1:D
1;D
1CD
18D
1<D
20D
B:0
B;0
BC0
B80
B<0
B100
B110
B120
B130
B10
2008 200< 2010 2011 2012 2013# 201# 201:# 201;#
P er c en t
P en e t r a t i on D
o l l a r s i n
B i l l i o n s
6rivate 7abel .ollars 6rivate 7abel Share
So)r!e? 6a!kaged Fa!ts "The F)t)re o# Food etailing in the >$S$? Shoer 5nsights and Market Eort)nities%, th dition, )ly 2013
etail ro!ery 6rivate 7abel Trends
C
67 E4T9 2( G*N.S
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veryone G)ys 6rivate 7abel Food
So)r!e? 55 &ons)mer Shoer 5nsights, Total >S H *ll E)tlets, Total dibles, :2 weeks ending 11I03I2013
B::1B:<: B;1:
B;:1 B;;; B;;2 B;38
B0
B100
B200
B300
B00
B:00
B;00
BC00
J B1: B1:K B2:K B3:K B:0K BC0K B100 K
P
r i v a t e L a b e l B u y i n ! a t e
" #h$ vs$%A
&'$( )*$'" &*$+" &*$," &*$-" &'$," &*$."
8
99+% Household Penetration Across All Income Levels
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6rivate 7abel enome
Parity
#ost
/alue
Identity
<
!ane
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Storewide 6rivate 7abel rowth
So)r!e? Nielsen S!antra!k, F.M w 4MT :2 weeks ending 12I30I200; and Nielsen S!antra!k, Total >$S$ H *ll E)tlets &ombined, :2 weeks ending 08I31I2013,>6&-!oded
3;D
28D
20D1<D 1<D
1CD 1CD
1:D 1D
11D
1D
0D
:D
10D
1:D
20D
2:D
30D
3:D
0D
.airy .eli FroLenFoods
Fresh6rod)!e
FreshMeat
9G* Non-Foodro!ery
.ryro!ery
6a!kagedMeat
eneralMer!h
*l!oholi!Gevs
P r i v a t e L a b
e l D o l l a r 0 h a r e
-''1 -'*.
*($+" A/GK2$1 ts
#hane )'$, &1$2 &-$+ &3$, &*$( &3$' &+$- &*$* &*$+ &-$3 &'$+
10
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&ons)mers = Nat)ral Sele!tion
11
Private Label Mindset
A ood *lternative C3DO
A P)al /)ality ;DO
A Qal)e #or Money ;CDO
A 5nnovation 6arity :3DR
A Store Sele!tion 3 Fa!tor
So)r!es? 1 Nielsen 9omes!an, 6anel Qiews s)rveys, 20132 Saat!hi = Saat!hi U eort, 200C3 6a!kaged Fa!ts "The F)t)re o# Food etailing in the >$S$? Shoer 5nsights and Market Eort)nities%, th dition, )ly 2013
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0D
:D
10D
1:D
20D
2:D
30D
3:D
0
:,000
10,000
1:,000
20,000
2:,000
1<<8 1<<< 2000 2001 2002 2003 200 200: 200; 200C 2008 200< 2010 2011 2012 7TM
Private Label 0hare of 4ew Products in 50 6ood 7 Drin8
N)mber o# New 6rod)!ts 6rivate 7abel D o# New 6rod)!ts
rowth Thro)gh 5nnovation
So)r!e? Mintel N6., as o# E!tober 2013 12
Tree9ouse Era
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6rivate 7abel S)lier .N*
Brand Innovation
#ustomerMar8etin
Lowest #ost
6ast 6ollower
4BE :uality
Product
Services
13
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7everage E)r o-To-Market 6resen!e
1VNorth *meri!an etail ro!ery net reven)e sales #or last twelve months ended Setember 30, 2013, er S& #ilingsSo)r!e? 55 with Management stimates
!an8in PL
;* ;* ;* ;* ;* ;* ;* ;* ;-
0D
2:D
:0D
C:D
100D
Powdered#reamer
06 PowderedDrin8
0inle 0erve#offee
Pic8les 7!elish
0aladDressin
#ondensed0ou<
Mac 7 #heese Oatmeal 0alsa
5 n i t 0 h a r e o
f P r i v a t e L a b e l
T90 0hare of Private Label in #ore #ateories
=*$1Bn in !etail 0alesV
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S)rvival o# the Fittest in 201
1:
Mar8et<lace
A *ss)me a #lat !ons)mer se!tor
A (e!t marginal in)t in#lation
0ystems
A aise rod)!tivity thro)gh simli#i!ation
A 5nvest in GQF in#rastr)!t)reGrowth
A enerate organi! growth
A *!P)ire another growth !ategory
A (tend rivate label beyond !enter o# the store
ST* EN ST*TW
Growth
P r o f i t a b i l i t y
7ow 9igh
7 o w
9 i g h
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* New 6rivate 7abel 6aradigm
1;
Destination Brands
A The store is the brand
A elevant brand ersonalityH 6rod)!t
H nvironment
H (erien!e
A motional link to li#estyle
A .eliver beyond e(e!tations
A Grand val)e X rod)!t )tility
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E)r volving Eort)nity
9ealth 7Beauty Aids
4on)6oodsGrocery
GeneralMerch
4on 0helf0table
Edibles
Dry Grocery
Private Label Grocery=**- Billion
1C
Non Shel# Stable dibles in!l)des .airy, FroLen Foods, Fresh 6rod)!e, .eli, 6a!kaged Meat, Fresh Meat and *l!oholi! GeveragesSo)r!e? Nielsen S!antra!k, Total >$S$ H *ll E)tlets &ombined, :2 weeks ending 08I31I2013, >6&-!oded
*,$3"rowth rate-''2)-'*-
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To MisP)ote &harles .arwin@
18
It is not the strongest nor the most intelligent that survives, it is the one most adaptale to change!
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Business 0im<lification
&hris SlivaEVP, TreeHouse Foods & President, Bay Valley Foods
1<
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6rivate 7abel rowth *ven)es
20
To-7inerowth
row Share
o# &)rrent&ategories
5nnovate to
New&ategories *!P)isitions
G)siness Simli#i!ation and Eerational (e!)tion
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The Tree9o)se S)!!ess Model
Broadenin Product Portfolio
21
*n in!reasingly !aable !entraliLed&)stomer Marketing, 6rod)!t .eveloment
and S)ly &hain Management Team
Fo!)s on large and growing seto# !)stomers
nhan!edby
Sold
to
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&hoi!e is 5merative to E)r S)!!ess
"The resources we need to grow ato)r strategi! !)stomers and in o)r
growth !ategories are all around us
brilliantly disg)ised as im<ortant wor8 that drives no return$%
22
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Tree9o)se Fo!)s En G)siness Simli#i!ationA Tree9o)se's #o!)s on G)siness Simli#i!ation will
yield the reso)r!es we need to !ontin)e to grow theb)siness$
23
Business0im<lification
GrowthInvestments
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Simli#i!ation 4itho)t Sa!ri#i!ing rowth
2
0alad Dressin !evenue($ in millions) A Ever C00 Form)las H eliminate
the 2:D that drive 1D o#reven)e
A Ever 0 &ontainers - emhasiLeNG a!kaging
A liminate Ene Gat!h )ns Hdro lowest vol)me S>'s
A ed)!e Man)#a!t)ring
ed)ndan!ies H better lanningand #ore!asting tools to imroveline s!hed)ling
Invest savins to maintain rowth
B0
B:0
B100
B1:0B200
B2:0
B300
B3:0
2008 200< 2010 2011 2012 20137TM
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6rod)!t Segmentation .e#ines 5nvestment
Strategy
2:2:
Generate#ash
Invest 6or
Growth
!educeE><osure
Im<rove!eturns
E4T9LO? 9IG9
L O ?
9 I G 9
6 3 E F 5 T * G 5 7 5 T 1
0ho<<er@nowlede
#ustomer Mar8etin
Product Develo<mentand 0trateic Acuisition
Business 0im<lification
#ATEGO!IE0
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&)stomer Segmentation .e#ines
6arti!iation Strategy
2;
Tactical#ollaboration
0trateicPartner
#ommodity0u<<lier
0trateic0u<<lier
E4T9LO? 9IG9
L O ?
9 I G 9
Q E 7 >
M 0
#ustomiCed0ervices
Product Differentiation
O<erational Efficiency
#50TOME!0
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The 6ath Forward
A .o)ble o)r net reven)evia o)r 3 &ore rowthaven)es
A row the siLe I !ost o# o)r!entral !aabilities at lessthan the rate o# reven)e
A 4ork with o)r !)stomerartners to drive o)t low Ino val)e added !ost
28
A Broadenin Product Portfolio
An Increasinly #a<able#entraliCed Team
6ocus on Lare Growin#ustomers
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The 0tate of the Private Label
#ustomers and #onsumers
9arry Everlyenior Vi!e President, "ar#etin
2<
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22D21D 20D
22D 22D23D
2D2:D2D 23D
2D 2D2;D 2CD
*ll
9o)seholds
&are#ree Savvy Shoers Etimisti!s Start->s &a)tio)s and
4orried
.owntrodden
.ollar Share >nit Share
6rivate 7abel *!!eted *!ross &ons)mer
ro)s
30
$
Total dible StoreV
6rivate 7abel Grand Share by !onomi! Segment
VTotal dible Store? FroLen, eneral Food, e#rigerated, Geverages (!l)des 7iP)or
So)r!e? 55 &ons)mer NetworkY, Total >S *ll E)tlet, 7atest :2 4eeks nding 0;-1;-13
9igher 5n!ome 7ower 5n!ome
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4inning etails .rive both Grands and
6rivate 7abel
32
6rivate7abel
:$CD
Grand 2$D
Total 3$3D
9ighlightedetailers
F$out<erform the mar8et by a sinificantmarin
0$1D
0$D
0$2D
M>7ETotal
!etailers that have concurrently usedbrands and <rivate label to drive rowthF
So)r!e? 55, Market *dvantage, /3 elease$ Samle o# 12 retailers shown H 1; total demonstrated /3 brand and rivate label growth
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.i##erentiation is &riti!al to &at)re
Today's &ons)mers
33So)r!es? Fig$ 1? abobank, 2013 Fig$ 2? 5GM 5nstit)te #or G)siness Qal)e analysis, 2008, 6rivate 7abel Store Grands esear!h, 2013
Fig$ 1? 6remi)m and val)e a!kaged #ood segments growingat the e(ense o# the mid-market, 2013-201C
Fig$ 2? 9ybrid vs$ traditional !ons)mtion atterns
%%' O retailers identiied dierentiation as the most im*ortant role o their storebrand *roram
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(erien!e and Te!hnology .riving
Millennial 6)r!hase Gehaviors
3So)r!es? Symhony55 etailer = Grand 7oyalty S)rvey, /2 2012, Symhony55 Market 6)lse S)rvey, /2 2012
"ar#etin Communi!ationElements till Criti!al+
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M)lti-Fa!eted Grand vangelism
3:
Tailored Priate -abel Prorams
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4inning etailers are >sing M)ltile
Strategies to 4in
3;
#onsumer 0ho<<er @PIsInde> vs %A
Total 50Multi Outlet
?innin!etailersH
" 99 Buyin *'' *'.
" of Buyers ->& Buyers *'' *'*
5nit 0ales <er Buyer 22 *'+
Product Tri<s <er Buyer 22 *'-
5nit 0ales <er Tri< 22 *'*
Buyer #onversion Amon !etailer 0ho<<ers *'' *'-
!etailer 0hare of Dollars amon #onvertedBuyers *'' *'.
V*verage o# 5ndi!es #or 4inning etailers
• Gettin 0ho<<ers to buymore Private LabelFmore
often 7 more <er tri<$
• Generatin more Private
Label Trial more 99sJ 7!e<eat$
• #onvertin more 0ho<<ersinto Private Label buyerswhile rowin Private
Label loyalty$
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4inning etailer (amle
3CSo)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13
/3 2013 &hange in 67 *ssortment 5temsIStore
/3 2013 67 /)ality Mer!handising
A (anding val)able &ore egional etailer!ons)mer ho)seholds
A &omm)ni!ating higher val)e 6rivate 7abelto !ons)mersIshoers with in-store/)ality Mer!handising ta!ti!s
A stablishing a better *ssortment, addingmore items than M)lti-E)tlet &ometition
Core !onsumer is more val)able and growing #asterthan Aerae !onsumer
Above averae rowth due toK
So)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13
So)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13
#ore !etailerPrivate Label
#onsumer
99 5n!omeBC0K
99 SiLe K
1K &hildren
99's G)ying = &onversion
27
39
Trips per Buyer
& o r e
* v g $
$264
$402
Dollars per Buyer
FreP)en!y = G)y ate
Tris Ir .ollarsIr 5nde( vs *
& o r e
* v g $ 103
112
HH's Buying
& o r e
* v g $
101
106
Buyer Conversion
& o r e
* v g $
13.4
21.4
Total US - Multi Outlet
Regional Grocer
40.7; -0.4
55.9; +0.2
Total US - Multi Outlet
Regional Grocer
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#ost to 0erve
)dy &larkenior Vi!e President, Customer olutions
38
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The ole o# 7ogisti!s
3<
#ollaborative
! e
s < o n s i v e
0hi< in 6ull
On Time Aile
Low #ost
E f f i c i e n t
-oisti!s is the a!e o the *artnershi* in Priate -abel
Marin Enhancement
"orecast Production #istriution
Store
$eplenishment
Consumer
Programs
"ormula
ptimi&ation
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The volving .istrib)tion Network
A Meeting the needs o# all !)stomers
0
.ire!t #rom 6rod)!ing
6lant
7owest &ost Gra!ket
F)ll Tr)!k
F)ll 6allet
4eeklyor Gi-4eekly Erder&y!le
.ire!t #rom 6rod)!ing6lant
7owest &ost Gra!ket
F)ll Tr)!k
F)ll 6allet or &ase 6i!k
Mi(ed&ategories toea!h 4eekly orGi-4eekly orders
.ire!t #rom 6rod)!ing6lant
7owest &ost Gra!ket
6artial Tr)!k
F)ll 6allet
or &ase 6i!k
Mi(ed&ategories to
ea!h 4eekly orGi-4eekly orders
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The ##i!ien!y Qarian!e
1
L'
&ost to Serve &)stomers
!educe #ost byKSingle G)ying E##i!e
6ull PalletsF)ll Tr)!ks##i!ient .eliveries or 6i!k)sNo Se!ial 9andling eP)ests6ull EDI #ommunicationsEn Time FT 6ayments
6roviding *deP)ate 7ead Time*!!et Standard Shel# 7i#e ISto Shi 7i#e#ommon 6ormulas Pac8ain
HI(H
&ost to Serve &)stomers
Add #ost byK7imited Te!hnology
.e-&entraliLed 6)r!hasingSmall Erder SiLes9ih #ase Pic8 FreP)ent .eliveries7T7 ShimentsErder &hanges
.ed)!tionsInefficient !eceivin PracticesM)ltile Erders er Tr)!k!educed 0hi<<able Days
>niP)e Form)las or 6a!kaging
Providin #ost to0erve based <roramsto meet the needs of a
variety of customersu<<ly chains$
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(e!ted es)lts
2
&hanges in&)stomer
Gehavior
7ower*verage
6rod)!t &osts
Qol)meains
StreamlinedErder
F)l#illment
Margin
ains
A #ulture of#ost to 0erve
Strategic,
Collaorative )*ransparent
Partnerships
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Tra!king the S)!!ess H &)stomer Qiew
3On Time .ele!ts /eliered Orders
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Tra!king the S)!!ess HTree9o)se Qiew
200; - 2013?
-'' Gasis 6oint 5mrovement
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Acuisition and Interation 0tratey
Todd 7eGlan!Vi!e President, tratey
;
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5ntegration 6laybook .rives (e!)tion
A *dvan!e lanning
A &ross-#)n!tional in#rastr)!t)re
A &lear g)ideosts and milestones
A ob)st tra!king and monitoring
C
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Team 5n#rastr)!t)re
0teerin#ommittee
Proect
ManaementOffice
InterationTeam
0u<<ort6unctions
InterationTeam )
O<erations
InterationTeam
Go to Mar8et
Set dire!tion and make de!isions
&oordinate the e##ort
.rive e(e!)tion
8
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5nitiative 6rioritiLation
Immediate Im<act
E a s e o f E >
e c u t i o n
Multi)faceted assessment
0u<<ortin Activities :uic8 ?ins Must Do
0electively launchearly in interation
• ase o# imlementation
– F)n!tionalinterdeenden!ies
– Time reP)ired
– eso)r!es reP)ired
• 5ma!t
– Synergy ima!t
– &)lt)ral ima!t – &onsisten!y with
g)iding rin!iles
7ow 9igh
7 o w
9 i g h
De<rioritiCe over6irst 2' Days
F)ll S*6
Erder to
&ash
ey*!!o)nts
5ntegrate
6ro!)re
ment
S)ly&hain
<
SEUwork
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Tra!king and Monitoring
A Everview o# #)n!tional integration agenda
A Groad timelines #or e(e!)tionA 5nterdeenden!ies and otential risks to lan
A Everview o# #)n!tional integration agenda
A Groad timelines #or e(e!)tionA 5nterdeenden!ies and otential risks to lan
Team #harters
A &riti!al ath a!tivities and seP)en!ingA .eliverable ownersA &riti!al ath a!tivities and seP)en!ingA .eliverable owners
Team ?or8<lans
A 6rogress against #)n!tional agendas
A >!oming a!tivities and riorities
A isks and remediation lans
A 6rogress against #)n!tional agendas
A >!oming a!tivities and riorities
A isks and remediation lans
?ee8ly 5<dates
:0
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&ase St)dy H &ains
A Transa!tion !losed )ly 1, 2013
A 5nnovation lat#orm in remi)m saladdressing and mayonnaise
A ateway to North ast marketA .eloyed team to g)ide integration
A &at)red ro!)rement e##i!ien!ies
A En-tra!k to deliver against stated#inan!ial and strategi! e(e!tations
:1
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Acuisition Landsca<e
rik ahlerenior Vi!e President, Cor*orate /eelo*ment
:2
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Eort)nity &reation
T90 M7A
0tratey
4ew
#ateories
Bolt)ons
4ewPlatforms
0trateic
!elationshi<s
:3
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nhan!ed *!P)isition Filter
#om<any Attractiveness#ateory Dynamics 0trateic 6it with T90
A 7everage !ore!ometen!ies
A (and o)r horiLons
A 9istori!al er#orman!eand market osition
A 5nnovation !aabilities
A &ategory siLe andgrowth
A &)rrent and emerging!ons)mer trends
:
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*!P)isitions *ligned with &ons)mer
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*!P)isitions *ligned with &ons)mer
Trends@
:;
#onvenienceBetter)6or)%ou
h # 201
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Themes #or 201
:C
Buoyant M7A
Mar8et
T90 Acuisition
Proficiency
Better 4ot Bier Invest 6or the 6utureOver 0cale
0u<<ort Portfolio0tratey
Drive 9iher Marinsand !OI
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6inancials 7 #oncludin !emar8s
.ennis iordan
EVP and Chie Finan!ial Oi!er
:8
S t b 2013 E ti S t
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Setember 2013 Eerating Segments
:<
+ine months ended Septemer ,-
./ in thousands0
-'*. -'*- IncDecJ -'*. -'*- IncDecJ -'*. -'*- IncDecJ
4et 0ales B1,1;3,C33 B1,13:,20 -$3" B2;,3:C B2:3,0;1 +$3" B20:,:1; B201,0C< -$-"
DOI B188,C0: B1C;,83: 1$(" B3:,888 B32,8 2$." B38,038 B30,<C -+$("
DOI " 1;$2D 1:$;D 1' b<s 13$;D 13$0D 1' b<s 18$:D 1:$2D ..' b<s
4orth American !etail Grocery 6ood Away 6rom 9ome Industrial 7 E><ort
Strong toline growth, both organi! and thro)ghstrategi! a!P)isitions, !omlemented by oerating
e##i!ien!ies, res)lts in solid .E5 margin imrovement$
T 9 . bt & it
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Outstandin as
of 2.'-'*. Availability Interest !ate E><iration
evolving &redit 1 B:0: mm B23: mm3 7K120 bs Setember 201;
Senior Notes: Z Z ;$03D Fi(ed Setember 2013
9igh ield Notes B00 mm Z C$C:D Fi(ed Mar!h 2018
Total Debt =2'3 mm2
Tree9o)se .ebt &aa!ity
;0
Notes?1 *mended revolver in Setember 2011 to tighten ri!ing by :0bs a!ross the grid and e(tended mat)rity by 1 year2 5n!l)des B:$ million o# ta( in!rement #inan!ing and other debt 3 (!l)des o)tstanding letters o# !redit totaling B10$8 million that are iss)ed b)t )ndrawn
*li!able rate as o# Setember 30, 2013: Senior notes aid o## in Setember 2013 )sing !aa!ity )nder revolver
6ro#orma leverage is e(e!ted to be less than 3$0 times debt to G5T.*at 12I31I13 a#ter the a!P)isition o# *sso!iated Grands is !omleted$
Q l * l i Ni M th 2013
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Qol)me *nalysis HNine Months 2013
;1
./ in thousands0 !etail 6ood Away Industrial
Grocery 6rom 9ome 7 E><ort Total
2012 Net sales 38,;;3B 100$0D 8<,82CB 100$0D ;3,;22B 100$0D :38,112B 100$0D
Qol)me I Mi( <,02 2$3D :,1C< -:$8D 1,;0 2$3D :,30: 1$0D
6ri!ing 3:8 0$1D 1,1; 1$3D 1:3 -0$2D 1,3;< 0$3D
Net #rom oerations <,382 2$D ,01: -$:D 1,30C 2$1D ;,;C 1$2D
*!Ps I rationaliLation 10,3:2 2$CD 11,8; 12$8D 3,:18 :$:D 2:,3:; $CD
Foreign !)rren!y 2,<0 -0$;D 2< -0$:D C3 -0$1D 2,<<2 -0$;D
2013 Net sales 01,<0CB 10$:D <;,8;<B 10C$8D ;8,3CB 10C$:D :;C,1:0B 10:$D
1 2
3
1 H (!l)ding so) de!lines, d)e to artial loss o# a retail !)stomer, retail gro!eryvol)meImi( in!reased $2D
2 H .e!lines rimarily in the aseti! and i!kles !ategories
3 H Nat)rally Fresh a!P)isition in *ril, 2012, the *seti! !heese and )ddingb)siness #rom *sso!iated Milk 6rod)!ers, 5n!$ in November, 2012 and the&ains Food a!P)isition in )ly, 2013
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201 4orking *ss)mtions
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201 4orking *ss)mtions
A New a!P)isitions will have lower than average grossmargins - in the range o# 1CD to 18D$
A ear Ene o# new a!P)isitions generally add very little
in!remental reven)esH Sales team integration a!tivities
H 7ong sales lead times in rivate label
;3
201 4orking *ss)mtions
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201 4orking *ss)mtions
A 201 S=* sending?H 5n!remental 5T sending to address the !onversion o# &ains and
*sso!iated Grands on a more a!!elerated basisH *dditional investments in demand lanning and #ore!asting to
a!!ommodate new b)sinesses
H (e!t S=* leverage to very modestly in!rease as a er!ent o# net
sales in 201
A Ta( rates sho)ld revert to histori! average o# abo)t 32D
A 5nterest rates will rise only slightly in 201
A F)t)re a!P)isitions will be in!remental to these ass)mtions;