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Dean Foods Company
Prudential Equity Group’s14th Annual Back to School
Consumer ConferenceSeptember 8, 2005
Forward Looking Statements
The following statements made in this presentation are “forward looking” and are made pursuant to the safe harbor provision of the Securities Litigation Reform Act of 1995: statements relating to (1) projected sales (including for individual segments, for specific product lines and for the company as a whole), profit margins, net income and earnings per share, (2) our growth strategy, and (3) our branding initiatives. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in this presentation. Financial projections are based on a number of assumptions. Actual results could be materially different than projected if those assumptions are erroneous. Sales, profit margins, net income and earnings per share can vary based on a variety of economic, governmental and competitive factors, all of which are identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10K (which can be accessed on our website at www.deanfoods.com or the website of the Securities and Exchange Commission at www.sec.gov). The success of our branding initiatives will depend on a number of factors, including customer and consumer acceptance of both the products themselves and the prices that we intend to charge for those products. We have many competitors with greater resources than ours, and significant additional spending or innovations by our competitors could render our products less successful than we currently expect. All forward looking statements in this presentation speak only as of the date of this presentation. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based.
Dean Foods Company: One of the nation’s leading food and beverage companies
• Largest dairy company in the U.S.– Over $10 billion in net sales– Approximately 4X the size of nearest competitor
• Uniquely positioned branded portfolio– On trend with healthy, better-for-you
and premium product offerings– High-growth brands– Significant margin-enhancing opportunities
• Extremely focused on shareholder value
Positioned for 8-10% Long-Term EarningsPer Share Growth1 1 Excludes possible facility closing costs, future
acquisitions / divestitures and one-time items
A Unique Balance of Businesses
Dairy Group– Stable, predictable earnings– Synergy opportunities – Volume growth – Strong cash flow– National refrigerated direct
store delivery network
WhiteWave Foods– Significant growth potential– Large, growing categories– Strong national brands– Value-added margins– Leverage through
consolidation
Consistent EPS Growth Despite DairyCommodity Price Volatility
Adj
uste
d A
nnua
l EP
SC
la ss I Mover (per h undre dw
ei ght)
* Adjusted to omit the net impact of facility closing costs, discontinued operations and one time items.
Dean Foods Adjusted Annual EPS vs. Class 1 Mover, 2002 – 2005 Est.
$9.00
$10.00
$11.00
$12.00
$13.00
$14.00
$15.00
$16.00
$17.00
$18.00
$19.00
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$1.40
$1.60
$1.74
FYE2002
FYE2003
FYE2004
FYE2005E
Adjusted Annual EPS Class 1 Mover
$1.97 - $2.02
Estimated 2005 Net Sales by Segment
Dairy Group$8.6 billion
WhiteWaveFoods$1.2 billion
International$0.4 billion
Estimated 2005 Net Sales by Segment
Dairy Group$8.6 billion
WhiteWaveFoods$1.2 billion
International$0.4 billion
Dean Dairy Group
• Nation’s largest dairy processor• Strong regional brands• Unique nationwide footprint• National refrigerated direct store
delivery (DSD) network
Estimated 2005 net salesof $8.6 billion
National Refrigerated DSD Network Coupled With Strong Regional Brands
DSD coverageProcessing plants
• 105 facilities• 30 facilities
closed to date• 2 additional
scheduled for 2005 closure
• 6,500 DSD routes
• 150,000 locations served
Focus on Leading the Industryin Customer Service
• One-stop-shop solution • Simplified pricing• Superior responsiveness• Focus on quality
Focus on Volume and Marketshare GrowthDairy Group Fluid Milk and Cream Growth versus
USDA Total Consumption
-4%
-3%
-1%
1%
2%
3%
4%
5%
-0.8%
2.4%
2.7%
Q22004
Q42004
Q12005
Q22005
USDA Fresh MilkVolume Growth
0%
-2%
Q32004
Dean Milk and CreamVolume Growth
-2.9%
-0.5%
0.0%
1.2%
-2.3%
4.1%
1.5%
* Calculation is exclusive of cream volumes in 2005
Focus on Driving Efficiency
• Consolidating redundant facilities
• Creating specialized manufacturing facilities
• Optimizing distribution• Leveraging scale• Improving margins
Experienced Leadership
• Alan Bernon namedPresident of Dean Dairy Group– Effective January 1, 2006– 30 year dairy industry veteran– 20 years as president of Garelick/
COO of Dean Northeast region
• Pete Schenkel to becomevice-chairman of DeanJanuary 1, 2006– Will work closely with Alan
Estimated 2005 Net Sales by Segment
WhiteWaveFoods$1.2 billionInternational$0.4 billion
Dairy Group$8.6 billion
WhiteWave Foods
• Leading brands– Silk– Horizon Organic– International Delight– Land O’Lakes
Estimated 2005 net salesof $1.2 billion¹
¹ 2005 Net Sales includes Maries brand
Branded products have become a corepart of the Dean Foods portfolio over time
2002Purchased
White Wave
1997Purchased
Morningstar
2002Entered licensing agreement with Land O’ Lakes
2004Purchased HorizonOrganic
2005Merged 3 legacy companies
under WhiteWave name
Significant Strides Have Been Madein Integrating the 3 Legacy Companies
3 separate,legacy companies
– 3 faces to the customer
– 3 separate,under-leveragedsupply chains
– Internal redundancy– Limited process
and systems infrastructure
One company
– 1 organization– 1 leadership team– 1 “sales” face to
the customer– Supply chain
integration in progress
– Process and systems build-out in progress
One, unified company;
best-in-class brands, talent, and
infrastructure
– Focused portfolio of premium brands
– 1 face to the customer– Fully integrated supply
chain– Top-talent, brand-
centric organization– Best-in-class processes
and systems
Sust
aina
ble
grow
th a
ndsu
perio
r ret
urns
Time
White Wave’s Focus is to Enable Continued Growth and Superior Returns
StrongGrowth
And SuperiorReturns
StrongGrowth
And SuperiorReturns
FocusedProductPortfolio
FocusedProductPortfolio
Focusedportfolio ofcore brands
• Health andwellness
• Premium• High growth• Profitable
FocusedOrganization
FocusedOrganization
Top talent,brand centricorganization• Preservation of legacy
strengths• Talent infusion from
blue-chip consumer goods companies
• Investment in capabilities to drive sales and marketing excellence
FocusedSupplyChain
FocusedSupplyChain
Best-in-classsupply chain &infrastructure• Fully integrated,
leveraged supply chain• CPG best practice
systems andprocesses
• Seamless customerexperience
Vertically Integrated Branded Supply Chain
Efficient Manufacturing
Optimized Distribution
FocusedProduct Portfolio
Creating a Leveraged,Fully-Integrated Supply Chain
Under-leveragedShort-run Plants
DistributedMfg Footprint
ComplexDistribution
2,600 SKU’sInefficient
Processing
12 CompanyOwned Plants and
30+ co-packers
65InventoryLocations
Reduced product
movement, full trucks
(11 inventory locations)
Focusproduct
portfolio onlargest
opportunities(~700 SKUs)
Dedicated,multi-line,
long run plants(5 WWFC plants
3 strategicco-packers)
Focused on Premium, High Growth andProfit Potential Brands in the Dairy Case
Focused on brands that offer:• High growth
• Health and wellness
• High profit potential
• Premium dairy brands
• Synergy opportunities
Focused on Premium, High Growth andProfit Potential Brands in the Dairy Case
Focused on brands that offer:• High growth
• Health and wellness
• High profit potential
• Premium dairy brands
• Synergy opportunities
… with a History of Innovationand Strong Growth
5 YR CAGR ofKey Brands = 29%
* Pro forma assuming Dean owned these same businesses in all comparable periods
$ M
illi o
n s
0
200
400
600
800
1,000
1,200
2000 2001 2002 2003 2004 2005 E
p. 23
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
$275 M
$335 M
$235 M
and other$100 M *
Estimated 2005 Net Sales *
$190 M
* 2005 Net Sales excludes Maries brand* 'other' category includes Tofu products, and Jakada, Farm Rich, Naturally Yours,
Vitamite and IMO brands
p. 24
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
$335 M
Estimated 2005 Net Sales
p. 25
Strategic focus
Silk is driving growth in core ESL business
• Continue to drive the core refrigerated ESL businessinto the mainstream
• Eliminate Distractions
• Integrate the supply chainto drive margin expansion
• Continue to innovate
Estimated 2005 Net Sales
0%10%20%30%40%50%60%70%80%90%
100%$335 M
Other
Aseptic
ExtendedShelf Life
p. 26
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
$275 M
Estimated 2005 Net Sales
p. 27
Strategic focus
Horizon Organic Opportunityis Large and Growing
• Rationalize productofferings to focus onlargest opportunities
• Optimize pricing to maximize long-term profitability
• Integrate the supply chainto drive margin expansion
• Continuously manage organic milk supply
0%10%20%30%40%50%60%70%80%90%
100%
Estimated 2005 Net Sales
$275 M
Fluid Milk
Non-milk Dairy
Other
p. 28
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
$235 M
Estimated 2005 Net Sales
p. 29
Strategic focus
International Delight – Opportunities for Sales and Profit Growth
• Continue to be an innovation leader
– Introduction of seasonal flavors and “trans fat-free” varieties
• Capture the “Away from Home” Opportunity
• Integrate the supply chain to drive margin expansion
Estimated 2005 Net Sales0%
10%20%30%40%50%60%70%80%90%
100%$235 M
At Home(Pints and Quarts)
Away from Home(Bulk and PC)
p. 30
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
$190 M
Estimated 2005 Net Sales
p. 31
Strategic focus
Land O’ Lakes is a PremiumDairy Brand
• Leverage brand equityto build leadership in premium dairy categories
• Innovate to introduce value-added products
• Continue to invest to drive national brand equity and continued growth
0%10%20%30%40%50%60%70%80%90%
100%
Estimated 2005 Net Sales
$190 M
Half & Half
Aseptic Portion Control
Aerosol
Other
p. 32
WhiteWave Foods’Leading Brand Portfolio…
* Note: excludes Marie’s
and other$100 M*
Estimated 2005 Net Sales* 2005 Net Sales excludes Maries brand
* 'other' category includes Tofu products, and the Jakada, Farm Rich, Naturally Yours, Vitamite and IMO brands
p. 33
Strategic focus
Non-core Brands Will Be Re-focused or Rationalized
• Narrow Hershey’sproduct, channel, and customer focus
• Emphasize Hershey’sshake product line
• Focus on brand profitability• Other brands will be
re-focused or rationalized• Private label will continue
to be reduced
and other*
0%10%20%30%40%50%60%70%80%90%
100%
Estimated 2005 Net Sales
$100 M
Hershey’s Shakes
Hershey’sSS Milk
Hershey’sOther
Private Label
Other
* 2005 Net Sales excludes Maries brand
Building a World Class Organization
• Joe Scalzo namedPresident and CEO of WhiteWave– Proven executive with skills and
experience to realize WhiteWave’s potential
– Gillette, Coca-Cola, Procter & Gamble
– Brand management, marketing, logistics and supply chain management experience
– Passion for excellence
Focus on Shareholder Value
• Clarifying portfolio– Sale of Dean’s dips and Marie’s dressings– TreeHouse Spin-off
• Building a world-class management team
• Optimizing operations– Dairy Group facility consolidation – WhiteWave supply chain efficiency
• Optimizing capital structure– Efficient use of free cash flow
Focus on Shareholder Value Stock Price Performance, IPO – August 2005
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Apr-96
Oct-96
Apr-97
Oct-97
Apr-98
Oct-98
Apr-99
Oct-99
Apr-00
Oct-00
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
CAGR = 26%
Acquired Morningstar
Acquired Dean Foods
AcquiredWhite Wave
Acquired Horizon Organic
Began WhiteWaveconsolidation
TreeHouse Spin-off
TreeHouse Foods was Spun-off from Dean Foods on June 27, 2005. Chart includes the value of TreeHouse Foods stock for June through August 2005 to show total shareholder return since IPO
Hurricane Katrina
• New Orleans facility shut down • Significant gulf coast market disruption• Resin and fuel costs have increased significantly• WhiteWave continues to perform well
• Maintaining guidance – $0.49 - $0.51 per share in the third quarter– $1.97 – $2.02 per share for the full year
Summary• Dairy Group continues to execute long-term
strategy– Growing marketshare– Driving efficiency
• Significant opportunities at WhiteWave Foods– Driving rapid growth in well-positioned brands– Pushing efficiency to grow profitability
• Intense focus on shareholder value creation– History of shareholder enriching activities
Dean Foods Company
Prudential Equity Group’s14th Annual Back to School
Consumer ConferenceSeptember 8, 2005