Deutsche Bank 2006 High Yield Conference

Deutsche Bank2006 High Yield Conference

October 4, 2006

1

CFO

Dave Meyers

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Forward-looking Statement Disclaimer

During the course of our discussion today, we will make statements that may constitute projections, expectations, beliefs or similar forward-looking statements. We would like to caution you that the Company’s actual results could differ materially from the results anticipated or projected in these forward-looking statements. Additional detailed information concerning important factors that could cause Del Monte’s actual future results to differ materially from the information we will give you today is included in our public filings, including our most recent annual report on Form 10-K, which are available on the SEC’s EDGAR database or on our website. The Company does not undertake to update any of these forward-looking statements in light of new information or future events.

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Vision

Every productEvery innovationEvery program

Nourishing Families. Enriching Lives. Every Day.

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A Branded, Top-Tier Consumer Packaged Foods Company

We are now:• More strategically focused

• Better positioned for brand-driven innovation

• More streamlined and efficient

• More aligned with consumer and customer trends

• Better competitively positioned

Margin ExpansionMargin Expansion

Higher GrowthHigher Growth

Successfully Executing Project Brand

To Drive:

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($’s in Millions, except EPS)

FY 06: Selected Financial Results

(1) Reflects EPS from Continuing Operations

F 2005 F 2006 % ChangeNet Sales 2,899$ 2,999$ 3.4%

Gross Profit 744 785 5.5%Gross Margin (% of Sales) 25.7% 26.2%

SG&A 450 480 6.8%SG&A Margin (% of Sales) 15.5% 16.0%

Operating Income 294 305 3.6%OI Margin (% of Sales) 10.2% 10.2%

EPS ($ per share) (1) 0.48 0.67

Fiscal Year-End

Continuing Operations

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Strong Foundation

Know our Market~90% of revenues in U.S. retail market

Brand share to support pricing and innovation~80% of Del Monte’s branded retail sales #1 and #2

Competitive scaleTop 10 marketer in the center store(1) providing customer and consumer leverage

Categories are strong and large

(1) Excluding beverage companies

Business Building Blocks

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ConsumerProducts

~65%

PetProducts

~25%

ConsumerProducts

~60%

PetProducts

~40%

Strong Foundation

Note: New net sales is forward-looking

Net Sales (Pre-Acquisitions) Net Sales (Post- Acquisitions)

Streamlined Portfolio of Leading Brands

SIF~10%

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Strong Foundation

#1 brand in Fruits, Vegetables and Tomatoes1

#1 brand in Tuna

#1 brand in Dog Biscuits

#2 brand in Soft and Chewy Dog Treats

#3 brand in Dry Cat Food

#2 brand in Wet Cat Food1. Solid Tomatoes tied for #1

Brand Strength

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F06 Size ($B)

'03-'06 CAGR

Fruit $1.7 3.7%Vegetable $1.7 1.1%Tomato $1.1 -0.3%Broth $0.5 8.4%Tuna $1.6 0.4%

Total $6.6 1.8%

Strong Foundation

Growing Categories

Source: ACNielsen All-Outlet Household Panel and internal estimates

F06 Size ($B)

'03-'06 CAGR

Dry Dog $6.4 8.0%Dry Cat $2.6 4.2%Pet Snacks $1.9 10.1%

$10.9 7.4%

Wet Cat $1.8 1.9%Wet Dog $1.5 3.5%

$3.3 2.6%

Total $14.2 6.2%

Consumer Categories Pet Categories

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Revenue Growth

Environment

Operating Margins

$2,856

$2,999

2,750

2,800

2,850

2,900

2,950

3,000

3,050

F04 F06

12.1%

10.2%

0%

2%

4%

6%

8%

10%

12%

14%

F04 F06

~3% CAGR (1)$M

Strong, topline momentum;Pressured operating margins

starting in F05

(1) Net Sales CAGR 2.5%

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Strategic Plan

Revenue Target EPS Target

Project Brand tenets – driving performance

3-5%

7-9%

Del Monte Long-Term Growth Targets

Innovation and Brand-Driven Growth


M&Aw/ Integration

M&Aw/ Integration

Portfolio Optimizationw/ Recent Acquisitions, Pricing

and Mix Improvement


and Mix Improvement

Financial Flexibilityw/ Debt Reduction

Cost and AssetStreamlining

w/ Transformation Initiatives

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Portfolio Optimization – Mix Improvement

Focus: branded, higher margin/growth businesses

Fiscal 2006 Going Forward

Post Acquisition~40% of Net Sales

Pre-Acquisition~30% of Net Sales

High Margin

High Growth

~10% NSV Growth Rates~2X Margins

Continue NSV and Margin Momentum

High Margin

High Growth

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Non-branded businesses~$295 FY06 salesSingle-digit operating margins(1)

Portfolio Optimization – Recent Acquisitions

Improve portfolio mix through the divestiture and acquisitions

Long Term Guidance3-5% Topline Growth

7-9% EPS Growth

Long Term Guidance3-5% Topline Growth

7-9% EPS Growth

Divested Soup andInfant Feeding

Divested Soup andInfant Feeding

Acquired Meow Mix and Milk-Bone

Acquired Meow Mix and Milk-Bone

Branded businesses~$430 CY05 salesDouble-digit operating margins

(1) Reflects standalone businesses

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Actions Taken – M&AAcquisitions enhance financial profile

Strong Category Growth Rates’03-’06

Center Store Scale’05 Net Sales

Healthy Gross Margins’05 Gross Margins

Large Categories

Milk-BoneMeow Mix

$2.6B $1.6B

4%

~$250M

>35%

11%

~$180M

>35%

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Strategic Plan



3-5%

7-9%




M&Aw/ Integration

M&Aw/ Integration


and Mix Improvement


and Mix Improvement




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Brand-driven innovation: 3 Initiatives

Existing Line Extension InnovationExisting Line Extension Innovation

Category Expansion InnovationCategory Expansion Innovation

Category Adjacency InnovationCategory Adjacency Innovation

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Category Building Innovation

Innovation: Products and packaging address key themes/platforms

Wholesome MealHelpers

Wholesome MealHelpers Feel Good IndulgenceFeel Good Indulgence Win Win SnacksWin Win Snacks

Bright Eyed & Beautiful

Bright Eyed & Beautiful Me & My PetMe & My Pet Rewarding Taste

ExperienceRewarding Taste

Experience

CONSUMER

CONSUMER

PET

PET

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Category Building Innovation – F07 Pet Innovation

Pet Products leading F07 category building innovation

Pet SnacksPet Snacks Dry PetDry Pet

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Strategic Plan



3-5%

7-9%




M&Aw/ Integration

M&Aw/ Integration


and Mix Improvement


and Mix Improvement




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Transforming Acquisitions

Del Monte Foods• Enhances portfolio of leading, high growth/margin brands• Improves platform for innovation• Increases annual sales growth and gross margin potential

Del Monte Pet Products• Increases representation from strategic priority pet snacks and dry

food business• Increases overall presence in Pet Aisle focused on dry pet and pet

treats• Expands distribution opportunities in under developed channels

Pet acquisitions significantly strengthen financial performance and strategic profile

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33%28%Pet Snacks

22%5%Dry Cat

18%27%Other

100%100%Total DMPP

12%17%Wet Cat

2%3%Wet Dog

13%20%Dry Dog

Post-Acquisition

Pre-AcquisitionSegment

% of Total DMPP Net Sales by Segment

#2#4Dry Cat

#1#2Pet Snacks

#2#3Total Pet

#2#2Wet Cat

#3#3Wet Dog

#4#4Dry Dog

Post-Acquisition

Pre-AcquisitionSegment

DMPP Market Share Position*

Del Monte Pet Products

* Source: Nielsen 52 weeks ending April 2006; Food/Mass (xPL)

Today’s pet portfolio strategically positioned against high margin, high growth businesses

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Key Success Drivers

Meow Mix

Milk-Bone

• Continue the marketing and innovation momentum• Capture the synergies• Retain talent/Transfer the entrepreneurial spirit• Leverage Meow Mix brand equity

• Revitalize the brand• Apply Del Monte’s innovation and R&D capabilities• Utilize the Del Monte platform• Leverage the wholesome brand heritage to capitalize on the growing health and wellness trend in Pet

Del Monte focus: Build value with the acquisitions

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Vice President

Larry Bodner

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Strategic Plan



3-5%

7-9%




M&Aw/ Integration

M&Aw/ Integration


and Mix Improvement


and Mix Improvement




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Inflationary and Other Cost Increases1

Challenging Cost Environment

$150

$120 $120

$0$20

$40$60$80

$100$120

$140$160

F05 F06 F07E

GROSS COST INCREASESvs. PRECEEDING YEAR, EXCLUDES SAVINGS INITIATIVES

35 – 40RAW MATERIALS

25 – 30LABOR, BENEFITS, OTHER

20 – 25 LOGISTICS

25 – 30PACKAGING

IMPACT $MCATEGORY

F07E vs. F06 COST INCREASES

($ in millions)

% Increase ~5%~6%

1 Reflects information that was provided on the July 20, 2006 Investor Day. The Company has not provided updates to these numbers since that time and does not do so in this presentation

1

1

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Actions Taken - Cost and Asset Streamlining

Aggressive cost reduction programs,3x increase since F05

$50

$18

$50

$0

$10

$20

$30

$40

$50

$60

F05 F06 F07E

COST REDUCTION

STRUCTURAL CHANGES

E-SOURCING

LEAN MANUFACTURING

DRIVER

F07E COST REDUCTIONS

CAPITAL EXPENDITURES

YIELD MANAGEMENTINTENSIFYING ONGOING EFFORTS

($ in millions)

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Actions Taken – Announced Transformation Plan

Improves forecasting accuracyImproves supply chain efficiencyResults in significant improvement in working capital

Reduces transportation milesImproves capacity management

Reduces layers, including headcount reductionRealigns resources to increase overall effectiveness

Drives improved ROI promotional activity Reduces low-performing eventsEnables more efficient spend tracking

Optimize Pet Manufacturing Matrix

Streamline the Organization

Implement Supply Chain Efficiencies

Implement Enhanced Trade Fund Management

Capabilities

2 Year Payback; >50% Rate of Return

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Transformation Plan

Expected $110M in costs over the next two years; expect $50M in run rate savings in F09

Trade Fund Management

~15%

Supply Chain~25%

Streamline Organization

~15%

Pet Manufacturing

Matrix~45%

Streamline Organization

~30%

Supply Chain~30%

Trade Fund Management

~10%

Pet Manufacturing

Matrix~30%

Costs Savings

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Strategic Plan



3-5%

7-9%




M&Aw/ Integration

M&Aw/ Integration


and Mix Improvement


and Mix Improvement




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Exceeded cash flow target

Financial Flexibility

F06 Execution Going Forward

Initiated a Dividend

Reduced Debt(Pre-Acquisitions)

Exceeded Cash Flow Target

Executed Share Buyback

Continue to Pay A Dividend1

Generate Strong Cash Flow

Reduce Debt

1. The actual declaration and payment of future dividends and the establishment of record and payment dates, if any, is subject to final determination by our Board of Directors each quarter after its review of our then current strategy, applicable debt covenants and financial performance and position, among other things

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Long-Term Guidance


3-5%3-5%

7-9%7-9%

Operating Margin

12%12%

Cash Flow

$200M+$200M+

Revenue and EPS Growth Rates

Operating Margin Cash Flow

Project Brand, acquisitions and transformation plan drive increased long-term growth rate targets

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CFO

Dave Meyers

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Executional Excellence

Key Focus

Continue to Execute Against Project BrandContinue to Execute

Against Project Brand

Integrate Acquired Businesses

Integrate Acquired Businesses

Implement Transformation Plan

Implement Transformation Plan



3-5%

7-9%

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Documents

Deutsche Bank 2006 High Yield Conference