6. OUR STRATEGY IS WORKING
24%
Flowers
branded
13%
Others
5%
Bimbo
7%
Pepperidge
Farm 11%
Flowers
6%
private label
IBC
9%
14%
Weston
Other
private label
11%
Sara Lee
CORE MARKETS – IRI data for calendar year 2007
Supermarket/Drug only (does not include Mass)
8. THE FLOWERS WAY
BUILDING VALUE FOR SHAREHOLDERS
2001 $1.24 billion to shareholders on sale of Keebler;
Spin-off of Flowers Foods ($400 million market cap)
Nov. 13, 2008 $2.1 billion in market cap created since spin-off
Build additional shareholder value through
2008 and beyond
operational and financial strengths
9. STRATEGY
BAKE SMART THE FLOWERS WAY
Quality…
ts…Efficiency…
w Produc
Innovation…Ne
ality…
Efficiency…Qu
11. BAKING SMART
FLOWERS FOODS MARKET/BAKERY LOCATIONS
DSD territory $1.65 billion in sales (2007)
Warehouse delivery $387 million in sales (2007)
12. THE FLOWERS WAY
RECENT ACQUISITIONS
Holsum Bakeries
• Annual sales of $150 million
• Arizona-based with two bakeries/fresh breads and rolls
• Independent distributors serve Arizona, New Mexico, Nevada
and Southern California
• Completed on August 11, 2008
ButterKrust Bakery
• Annual sales of $70 million
• One bakery in Lakeland, Florida
• Serves customers throughout Florida
• Completed on August 4, 2008
13. GROWING STRONG
EXPANSION OF DSD TERRITORY*
Population served with DSD
143 million
$$
$$
$$
$ $$$
$$
$
$
*Flowers’ fresh breads
Current territory
Growth since 2004
14. Information Technology
PARTNERING WITH CUSTOMERS
STRATEGY
THE FLOWERS WAY
INNOVATE
esses...
roducts…Proc
ation…P
ystems…Inform
Delivery S
es…Bakeries…
Process
15. BAKING SMART
Efficient Bakeries
• New capacity—strategically located
• Innovations
• Technology
Distribution Strengths
• DSD/motivated distributors
• National reach
-Frozen foodservice
-Snack cakes
16. STRATEGY
SERVE THE THE FLOWERS WAY
MARKET
tions
t Loca
roducts…Righ
e…Right P
Extreme Servic
nsumers…
ustomers…Co
C
18. SOFT VARIETY BREAD
$750 million in annual sales, up
18% YTD
#1 bread brand in the US
#1 selling soft variety brand in
the U.S.
Honey wheat is #1 selling loaf
in the IRI South Market
100% Whole Wheat is #2 loaf
in the IRI South Market
Sources: Category Numbers IRI; Brand internal SDW
19. SUPER PREMIUM BREAD
$37 million in annual sales
Positive consumer and
retailer acceptance
Better-for-you position with
all-natural and made with
organic flour
Sources: Category Numbers IRI; Brand internal SDW
20. BREAKFAST SELECTIONS
Using brand strength to
grow share in the
breakfast category
Developed and
introduced new products
Leveraging nutritional
position as a point of
difference
21. WHITE BREAD
First healthier white
bread on market
$135 million in sales
Meets market’s demand
for healthier white bread
22. SPECIALTY SANDWICH ROLLS
Specialty rolls to make
meal occasions special
Taking foodservice
trends to supermarket
30. INCOME FROM CONTINUING OPERATIONS
In millions
$ 100 $113.6 m to $117.3 m
$94.6
%
5 .6 9
:1
80
AGR
C $74.9
Actual YTD
60 $87.1 m
$62.9
4.9% of
$52.8 $54.3
sales
40
20 21.4% 2.8% 15.8% 19.1% 26.4% 20.1% - 24.0%
% Growth
3.6% 3.5% 3.7% 4.0% 4.6% 4.7% - 4.8%
% of Sales
0
2003* 2004 2005 2006 2007 2008*
Projected
* 53-week year
Note: Includes recent acquisitions
CAGR does not include 2008 projected
31. DILUTED EPS FROM CONTINUING OPERATIONS
$1.2
$1.22- $1.26
1 $1.02
%
8.92
1
:
AGR
0.8 C $.81 Actual YTD
$0.94
0.6 $.66 +19.0%
$.54
$.51
0.4
0.2
% Annual
19.6% - 23.5%
21.4% 5.9% 22.2% 22.7% 25.9%
growth
0
2003* 2004 2005 2006 2007 2008*
Projected
* 53-week year
Note: Includes recent acquisitions
CAGR does not include 2008 projected
32. STRATEGY
INVEST WISELY THE FLOWERS WAY
n… People…
s… Informatio
… Brand
ries… Products
e
Invest in… Bak
33. CASH ALLOCATION*
In millions
$ 120
Capital
105 expenditures
90 Dividends
75
$88.1 million Share
60 Capital repurchases
45 Expenditures
$42.1 million Pension
30 Dividends
Acquisitions**
15
0
2003 2004 2005 2006 2007
* Major cash expenditures
** In addition to cash, stock and debt are used to fund acquisitions.
34. RETURN ON INVESTMENT
% 16
14 14.2%
13.0%
12 12.1%
10 10.6%
9.1%
8
7.4%
6
4
2
0
2003* 2004 2005 2006 2007 2008**
* 53-week year
** Trailing 13 periods ended October 4, 2008
Numerator – Income from continuing operations
Denominator – Average beginning and ending shareholders equity and debt
35. THE FLOWERS WAY
40 Weeks FULL YEAR
2008
2007
Guidance Change
2008 2007 Change
$2,420 – $2,430 $2,037 18.8 – 19.3%
Sales* $1,793.3 $1,563.0 14.7%
$113.6 – $117.3 $94.6 20.1 – 24.0%
Net income* $87.1 $73.2 19.1%
$1.22 – 1.26 $1.02 19.6 – 23.5%
Earnings per share $0.94 $0.79 19.0%
*in millions
Note: Includes recent acquisitions
36. LONG-TERM GOALS
LONG-TERM GOALS* 2007 Actual 40 Weeks 2008
In millions
Sales growth of 5% to 8% 7.8% 14.7% $1,793.3
EBITDA margin of 10% to 12% 10.3% 10.4% $187.2
ROI of 13% to 15% 14.2% 13.0%**
*3 – 5 year time horizon
**For the trailing 13 periods ended October 4, 2008
36
37. INVEST WISELY
BAKE SMART
MANAGE RESOURCES
INNOVATE
THE FLOWERS WAY APPRECIATE TEAM
DELIVER VALUE
SERVE THE MARKET
GROW
38. THE FLOWERS WAY
CALENDAR OF EVENTS
One-on-one meetings in Baltimore, Philadelphia, Boston
Nov. 17-18
Company sponsored analysts event in NY
Dec. 2
Feb. 5 Flowers Foods Q4 earnings release and fiscal ’08
results and conference call
Contact: Marta Jones Turner
Exec. VP, Corporate Relations
229-227-2348 – phone
marta_j_turner@flocorp.com
39. SAFE HARBOR
Today’s presentation includes forward-looking statements within the meaning of
the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995,
particularly statements regarding future financial and operating results of Flowers
Foods and its business. These statements are based on management's current
expectations or beliefs, and are subject to uncertainty and changes in
circumstances.
Actual results may vary materially from those expressed or implied by the
statements, due to changes in economic, business, competitive, strategic or
regulatory factors, and factors affecting the operation of the business of Flowers
Foods.
More detailed information about these factors may be found in filings by Flowers
Foods with the Securities and Exchange Commission, especially its Form 10-K, in
the sections entitled “Forward Looking Statements.” Flowers Foods is under no
obligation and expressly disclaims any such obligation to update or alter its
forward-looking statements, whether as a result of new information, future events
or otherwise.
