0
1
2
Denise Morrison
President &
Chief Executive Officer
3
Anthony DiSilvestro
Senior Vice President & CFO
Effective May 1, 2014
4
5
66
• 2% increase in net sales,
1% organic net sales decline*
• 5% decrease in adjusted EBIT*
• 4% decline in adjusted EPS,...
77
Q2 – U.S. Soup
+4%
+5%
U.S. Soup
Sales FLAT
+21%
7
888
Q2 – Global Baking & Snacking
+14%
Total Sales
999
Q2 – Bolthouse Farms
+6%
Sales
1010
Campbell Fiscal Year 2014 Guidance
2013 Base 2014 Growth Rates
Net Sales $8,052 4% to 5%
Adjusted EBIT* $1,232 4% to ...
11
• Why we are on the right course
• Highlights of our progress
• How we are driving productivity
• Work that lies ahead
...
1212
1313
to to to
Long-term Growth Targets
1414
TUMULTUOUS TIME
in the FOOD INDUSTRY
1515
16
in the
16
1717
1818
1919
2020
2121
Maintaining Our Focus
In Our Three Core Categories
SnacksSimple Meals Healthy Beverages
21
Thinking Bigger & Acting B...
2222
23
> Profitably grow North America Soup
and Simple Meals
> Expand our International presence
> Grow faster in Snacks and H...
24
2525
Strengthen and Grow the Core
• Optimized marketing spend
• Improved marketing effectiveness
• Disciplined execution a...
26
MOVES
26
27
1st
MOVE
27
28
2nd
MOVE
28
29
3rd
MOVE
29
30
4th
MOVE
30
3131
3232
Highlights of Our Progress
3333
Highlights of Our Progress
3434
Highlights of Our Progress
3535
Highlights of Our Progress
3636
Highlights of Our Progress
Trio of New Growth Engines
3737
Highlights of Our Progress
James Wong
President of Greater China
and Far East
Ümit Subaşi
President of Asia Pacific
3838
39
• Exited business in Russia
• Closed five plants
• Reduced headcount
by more than 2,000
• Restructuring programs
provid...
40
Things We Still Have to Accomplish
Execute new strategy for shelf-stable Beverages
41
Things We Still Have to Accomplish
Execute new strategy for shelf-stable Beverages
Restore growth in core business in A...
42
Things We Still Have to Accomplish
Execute new strategy for shelf-stable Beverages
Restore growth in core business in A...
43
Things We Still Have to Accomplish
Execute new strategy for shelf-stable Beverages
Restore growth in core business in A...
4444
4545
46
Anthony DiSilvestro
Senior Vice President –
Finance
47
Agenda
• Performance Overview
• Priorities for Uses of Cash
48
Growth Rates
F’12
Actual
F’13
Actual
F’14
Guidance
Net Sales 0% 12% 4-5%
Organic Net Sales* 0% 2% 1%
EBIT* (8%) 6% 4-6%...
49
Continuing Operations – Fiscal 2014
* Adjusted results; please refer to the non-GAAP reconciliations in the appendix.
G...
50
• Improved sales performance, benefitting from stronger
promotional programs and accelerated new products
• Acceleratin...
51
Cost Management Initiatives
$70
$30
$10
$13
$40 $163
$-
$50
$100
$150
$200
4Q11 1Q13 2Q13 4Q13 1Q14 Total
• Plant Closu...
52
Agenda
• Performance Overview
• Priorities for Uses of Cash
53
0
200
400
600
800
1,000
1,200
FY09 FY10 FY11 FY12 FY13
Cash from Operations
Strong Operating Cash Flows
Interest Covera...
54
1. Capital Expenditures
2. Dividends
3. External Development
4. Share Repurchases
Priorities for the Use of Cash
5555
Cash Allocation History(U.S.$millions)
0
500
1,000
1,500
2,000
2,500
F'09 F'10 F'11 F'12 F'13
Capital Expenditures Di...
56
Current Projects:
• Increased capacity for:
– Goldfish crackers
– Bolthouse beverages
– Swanson broth
• Soup common pla...
57
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
EST
Dividends ...
5858
External Development to Reshape the Portfolio
Acquiring Brands with Faster Growth Profiles
Divested our European Simp...
5959
1st Year Assessment of Bolthouse Farms
• No. 1 share position in
super-premium beverages*
• Salad dressings growing
c...
60
Long-Term Targets
Sales 3-4%
Adjusted EBIT 4-6%
Adjusted EPS 5-7%
Positioned for Improving Growth
• Pursue dual mandate...
61
Forward-looking Statements
This presentation contains “forward-looking statements.” Forward-looking statements can be i...
62
This presentation includes certain “non-GAAP” measures as
defined by SEC rules. We have provided a reconciliation of
th...
63
Q&A
Anthony DiSilvestro
SVP-Finance
Denise Morrison
President and CEO
Jennifer Driscoll
VP-IR
B. Craig Owens
SVP, CFO a...
64
6565
Reconciliation of GAAP and Non-GAAP
Financial Measures
Continuing Operations
Net Sales, Impact of Impact of Organic N...
6666
Reconciliation of GAAP and Non-GAAP
Financial Measures
Continuing Operations
Net Sales, Impact of Impact of Impact of...
6767
Reconciliation of GAAP and Non-GAAP
Financial Measures
($ millions, except per share)
Second Quarter
Diluted
EBIT EPS...
6868
Reconciliation of GAAP and Non-GAAP
Financial Measures
($ millions, except per share)
Six Months
Diluted
EBIT EPS
201...
6969
Reconciliation of GAAP and Non-GAAP
Financial Measures
*May not add due to rounding
Continuing Operations
EBIT July 2...
7070
($ millions)
Reconciliation of GAAP and Non-GAAP
Financial Measures
Adjusted Interest Coverage
July 28, 2013
As Repor...
7171
($ millions)
Reconciliation of GAAP and Non-GAAP
Financial Measures
July 28, 2013
Short-Term Borrowings 1,909$
Long-T...
Upcoming SlideShare
Loading in...5
×

Campbells cagny 2014

286

Published on

Campbell's Strategy Presentation at the Feb 2014 CAGNY Event

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
286
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
18
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Campbells cagny 2014"

  1. 1. 1
  2. 2. 2 Denise Morrison President & Chief Executive Officer
  3. 3. 3 Anthony DiSilvestro Senior Vice President & CFO Effective May 1, 2014
  4. 4. 4
  5. 5. 5
  6. 6. 66 • 2% increase in net sales, 1% organic net sales decline* • 5% decrease in adjusted EBIT* • 4% decline in adjusted EPS, which decreased to $1.42 per share* Q2 and First-Half Results – Continuing Operations • 6% increase in net sales, 3% organic net sales growth* • 15% growth in adjusted EBIT* • 19% increase in adjusted EPS, which rose to $0.76 per share* * See Non-GAAP reconciliation
  7. 7. 77 Q2 – U.S. Soup +4% +5% U.S. Soup Sales FLAT +21% 7
  8. 8. 888 Q2 – Global Baking & Snacking +14% Total Sales
  9. 9. 999 Q2 – Bolthouse Farms +6% Sales
  10. 10. 1010 Campbell Fiscal Year 2014 Guidance 2013 Base 2014 Growth Rates Net Sales $8,052 4% to 5% Adjusted EBIT* $1,232 4% to 6% Adjusted Net Earnings per Share* $2.48 2% to 4% * See Non-GAAP reconciliation ($ millions, except per share) Continuing Operations ($2.53 - $2.58)
  11. 11. 11 • Why we are on the right course • Highlights of our progress • How we are driving productivity • Work that lies ahead The Bigger Picture . . . Our Strategic Vision
  12. 12. 1212
  13. 13. 1313 to to to Long-term Growth Targets
  14. 14. 1414 TUMULTUOUS TIME in the FOOD INDUSTRY
  15. 15. 1515
  16. 16. 16 in the 16
  17. 17. 1717
  18. 18. 1818
  19. 19. 1919
  20. 20. 2020
  21. 21. 2121 Maintaining Our Focus In Our Three Core Categories SnacksSimple Meals Healthy Beverages 21 Thinking Bigger & Acting Bolder
  22. 22. 2222
  23. 23. 23 > Profitably grow North America Soup and Simple Meals > Expand our International presence > Grow faster in Snacks and Healthy Beverages
  24. 24. 24
  25. 25. 2525 Strengthen and Grow the Core • Optimized marketing spend • Improved marketing effectiveness • Disciplined execution against all drivers of demand • Consumer-driven innovation & brand building
  26. 26. 26 MOVES 26
  27. 27. 27 1st MOVE 27
  28. 28. 28 2nd MOVE 28
  29. 29. 29 3rd MOVE 29
  30. 30. 30 4th MOVE 30
  31. 31. 3131
  32. 32. 3232 Highlights of Our Progress
  33. 33. 3333 Highlights of Our Progress
  34. 34. 3434 Highlights of Our Progress
  35. 35. 3535 Highlights of Our Progress
  36. 36. 3636 Highlights of Our Progress Trio of New Growth Engines
  37. 37. 3737 Highlights of Our Progress James Wong President of Greater China and Far East Ümit Subaşi President of Asia Pacific
  38. 38. 3838
  39. 39. 39 • Exited business in Russia • Closed five plants • Reduced headcount by more than 2,000 • Restructuring programs provide annualized savings of approximately $160 million Significant Progress in Managing Our Costs
  40. 40. 40 Things We Still Have to Accomplish Execute new strategy for shelf-stable Beverages
  41. 41. 41 Things We Still Have to Accomplish Execute new strategy for shelf-stable Beverages Restore growth in core business in Australia
  42. 42. 42 Things We Still Have to Accomplish Execute new strategy for shelf-stable Beverages Restore growth in core business in Australia Realize the full benefits of innovation platforms, acquisitions and channel initiatives
  43. 43. 43 Things We Still Have to Accomplish Execute new strategy for shelf-stable Beverages Restore growth in core business in Australia Realize the full benefits of innovation platforms, acquisitions and channel initiatives Maintain our focus on smart external development
  44. 44. 4444
  45. 45. 4545
  46. 46. 46 Anthony DiSilvestro Senior Vice President – Finance
  47. 47. 47 Agenda • Performance Overview • Priorities for Uses of Cash
  48. 48. 48 Growth Rates F’12 Actual F’13 Actual F’14 Guidance Net Sales 0% 12% 4-5% Organic Net Sales* 0% 2% 1% EBIT* (8%) 6% 4-6% EPS* (3%) 7% 2-4% Continuing Operations * Adjusted results; please refer to the non-GAAP reconciliations in the appendix.
  49. 49. 49 Continuing Operations – Fiscal 2014 * Adjusted results; please refer to the non-GAAP reconciliations in the appendix. Growth Rates Q2 First Half Full-Year Guidance Net Sales 6% 2% 4-5% Organic Net Sales* 3% (1%) 1% EBIT* 15% (5%) 4-6% EPS* 19% (4%) 2-4%
  50. 50. 50 • Improved sales performance, benefitting from stronger promotional programs and accelerated new products • Accelerating productivity gains including benefits from a robotics installation in Australia • SG&A reductions from restructuring programs and lower incentive compensation • An extra week in the fourth quarter Second-half Performance Drivers
  51. 51. 51 Cost Management Initiatives $70 $30 $10 $13 $40 $163 $- $50 $100 $150 $200 4Q11 1Q13 2Q13 4Q13 1Q14 Total • Plant Closures • Overhead Reductions • Automation – Workforce Reductions Annualized Savings in U.S. $Millions Restructuring Programs
  52. 52. 52 Agenda • Performance Overview • Priorities for Uses of Cash
  53. 53. 53 0 200 400 600 800 1,000 1,200 FY09 FY10 FY11 FY12 FY13 Cash from Operations Strong Operating Cash Flows Interest Coverage 12 times* Net Debt/EBITDA 2.7 times* Credit Ratings A2/BBB+ *See non-GAAP reconciliation U.S. $ Millions
  54. 54. 54 1. Capital Expenditures 2. Dividends 3. External Development 4. Share Repurchases Priorities for the Use of Cash
  55. 55. 5555 Cash Allocation History(U.S.$millions) 0 500 1,000 1,500 2,000 2,500 F'09 F'10 F'11 F'12 F'13 Capital Expenditures Dividends 5-YR Totals: M&A Share Repurchases
  56. 56. 56 Current Projects: • Increased capacity for: – Goldfish crackers – Bolthouse beverages – Swanson broth • Soup common platform • Australia automation project Investing Capital in the Core Business
  57. 57. 57 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 EST Dividends Paid Maintaining a Competitive Dividend • Payout ratio of 48-49% (FY14 forecast) • Increased by 8% last fall to nearly $1.25 annualized
  58. 58. 5858 External Development to Reshape the Portfolio Acquiring Brands with Faster Growth Profiles Divested our European Simple Meals Business
  59. 59. 5959 1st Year Assessment of Bolthouse Farms • No. 1 share position in super-premium beverages* • Salad dressings growing consumption and share • Carrots delivering growth 0% 5% 10% 15% 20% 25% 30% 35% 40% Bolthouse Naked Odwalla Pom Super Premium Beverages $Share* U.S. $ Millions F’13 F’14 H1 Sales $756 $392 EBIT $63 $32 *Source: IRI Total U.S. Multi-Outlet Data for 52-week period ending Jan. 26, 2014
  60. 60. 60 Long-Term Targets Sales 3-4% Adjusted EBIT 4-6% Adjusted EPS 5-7% Positioned for Improving Growth • Pursue dual mandate – Sustainable, profitable growth in the core – Expanding into higher growth spaces • Improve financial performance • Return to long-term targets
  61. 61. 61 Forward-looking Statements This presentation contains “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “believes,” “estimates,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make on guidance for 2014 and on our long-term growth targets, on our uses of our cash, on our ability to execute our new business strategies successfully, and on our expectations that we can accelerate innovation across our portfolio, integrate acquisitions and expand our international footprint. Forward- looking statements are based on our current expectations and assumptions regarding our business, our industry and other future conditions. Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements due to factors such as the impact of strong competitive responses to our marketing strategies; risks associated with trade and consumer acceptance of our new and improved products; the effectiveness of our promotional programs; the impact of portfolio changes; our ability to realize projected cost savings; and the other factors described in “Risk Factors” in the company’s most recent Form 10-K and in subsequent SEC filings. We undertake no obligation to update these statements to reflect new information or future events.
  62. 62. 62 This presentation includes certain “non-GAAP” measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is posted on our investor Web site, which can be found at investor.campbellsoupcompany.com. Non-GAAP Measures
  63. 63. 63 Q&A Anthony DiSilvestro SVP-Finance Denise Morrison President and CEO Jennifer Driscoll VP-IR B. Craig Owens SVP, CFO and CAO
  64. 64. 64
  65. 65. 6565 Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations Net Sales, Impact of Impact of Organic Net Sales, Organic July 28, 2013 As Reported Acquisitions Currency Net Sales As Reported Net Sales Net Sales from continuing operations 8,052$ (770)$ 13$ 7,295$ 12% 2% Net Sales, Impact of Impact of Organic Net Sales, Organic July 29, 2012 As Reported Acquisitions Currency Net Sales As Reported Net Sales Net Sales from continuing operations 7,175$ -$ (2)$ 7,173$ 0% 0% Net Sales, July 31, 2011 As Reported Net Sales from continuing operations 7,143$ Organic Net Sales For the Fiscal Year Ended ($ millions) % Change % Change
  66. 66. 6666 Reconciliation of GAAP and Non-GAAP Financial Measures Continuing Operations Net Sales, Impact of Impact of Impact of Organic Net Sales, Organic January 26, 2014 As Reported Acquisitions Currency Net Accounting Net Sales As Reported Net Sales Net Sales from continuing operations 2,281$ (109)$ 40$ 7$ 2,219$ 6% 3% January 27, 2013 Net Sales from continuing operations 2,162$ Net Sales, Impact of Impact of Impact of Organic Net Sales, Organic January 26, 2014 As Reported Acquisitions Currency Net Accounting Net Sales As Reported Net Sales Net Sales from continuing operations 4,446$ (190)$ 71$ 10$ 4,337$ 2% -1% January 27, 2013 Net Sales from continuing operations 4,367$ For the Six Months Ended % Change Organic Net Sales ($ millions) % ChangeFor the Three Months Ended
  67. 67. 6767 Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share) Second Quarter Diluted EBIT EPS* 2014 - As Reported 361$ 0.74$ Add: Restructuring charges and related costs 13 0.02 2014 - Adjusted 374$ 0.76$ 2013 - As Reported 277$ 0.54$ Add: Restructuring charges and related costs 48 0.09 2013 - Adjusted 325$ 0.64$ % Change 15% 19% Continuing Operations *May not add due to rounding
  68. 68. 6868 Reconciliation of GAAP and Non-GAAP Financial Measures ($ millions, except per share) Six Months Diluted EBIT EPS 2014 - As Reported 666$ 1.32$ Add: Restructuring charges and related costs 36 0.06 Add: Loss on foreign exchange forward contracts 9 0.02 Add: Tax expense associated with sale of business - 0.02 2014 - Adjusted 711$ 1.42$ 2013 - As Reported 645$ 1.28$ Add: Restructuring charges and related costs 91 0.18 Add: Acquisition transaction costs 10 0.02 2013 - Adjusted 746$ 1.48$ % Change -5% -4% Continuing Operations
  69. 69. 6969 Reconciliation of GAAP and Non-GAAP Financial Measures *May not add due to rounding Continuing Operations EBIT July 28, 2013 July 29, 2012 July 31, 2011 As Reported 1,080$ 1,155$ 1,212$ Add: Restructuring charges and related costs 142 7 60 Add: Acquisition transaction costs 10 5 - Adjusted 1,232$ 1,167$ 1,272$ % Change 6% -8% Diluted EPS July 28, 2013* July 29, 2012 July 31, 2011 As Reported 2.17$ 2.29$ 2.26$ Add: Restructuring charges and related costs 0.28 0.01 0.12 Add: Acquisition transaction costs 0.02 0.01 - Adjusted 2.48$ 2.31$ 2.38$ % Change 7% -3% EBIT and EPS For the Fiscal Year Ended ($ millions, except per share)
  70. 70. 7070 ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures Adjusted Interest Coverage July 28, 2013 As Reported Depreciation & Amortization 407$ Discontinued Operations (11) Restructuring Related Costs (86) Adjusted Depreciation & Amortization 310$ Adjusted EBIT 1,232 Adjusted EBITDA 1,542$ Interest, Net 125$ Adjusted Interest Coverage 12 Continuing Operations
  71. 71. 7171 ($ millions) Reconciliation of GAAP and Non-GAAP Financial Measures July 28, 2013 Short-Term Borrowings 1,909$ Long-Term Debt 2,544 Total Debt 4,453$ Less Cash and Cash Equivalents (333) Net Debt 4,120$ Adjusted EBITDA 1,542$ Net Debt/Adjusted EBITDA 2.7 Net Debt/ Adjusted EBITDA
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×