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Fresh Del Monte Produce Inc.: Investor Relations
Fresh Del Monte Produce Inc.: Investor Relations
Investor Relations
August 2016
Forward-Looking Statements
2
Agenda
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One of the world’s leading vertically-integrated producers, distributors and marketers of
fresh and fresh-cut fruit and vegetables as well as a leading producer and distributor of
prepared fruit and vegetables, juices, beverages, snacks and desserts in Europe, Africa, the
Middle East and countries formerly part of the Soviet Union.
Europe and
North America Africa
Asia Pacific
Mohammad Abbas Vice President – MENA (Middle East & North Africa) 9
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Fresh Del Monte At A Glance - Continually Evolving Company
Then Now
Sourcing
Limited Global basis
Truckload shipments,
Truckload shipments Delivery System Just in Time (“JIT”),
Direct Store Delivery (“DSD”)
2 Distribution Centers Global DC’s &
(“DC’s”) Fresh-Cut Operations (“FCO’s”)
Logistics
Owned & chartered vessels
Chartered vessels
Pineapples
Fresh-Cut Products
Bananas
14% 46% Non-Tropical Fruit
75%
Avocados
Melons
Net Global Sales of $1.2 Billion Net Global Sales of $4.1 Billion
Bananas 75% Other Fresh 21% Other 4% Bananas 46% Other Fresh 45% Prepared Food 4%
8
Fresh Del Monte At A Glance – Then and Now
International Expansion
Net Sales by Region
1996 2015
Asia
11% Asia
13%
Europe Europe
18%
49% Other 55% Middle East & North
Africa
35%
North Other
America 14%
North America
2%
3%
Net Global Sales of $1.2 Billion Net Global Sales of $4.1 Billion
North America $2,236.1 / Europe $736.1 / Middle East $554.3 / Asia $434.5
in Millions 9
Strengths We Are Building On
Looking Into The Future
“By 2050, demand for food will rise 70 per cent yet our capacity to increase food
production is declining.”
Source: Oxfam International, June 1, 2011
“We will need to double irrigation by 2050 to grow enough food to meet demand of
an estimated population of 9 billion people”
Source: WWF (http://wwf.panda.org/what_we_do/how_we_work/conservation/freshwater/)
CONCLUSION
“Land is scarce and will become scarcer as the world has to double food output to
satisfy increased demand by 2050. With limited land and water resources, this will
automatically lead to increased valuations of productive land.”
Source: Joachin von Braun, International Food Policy Research Institute
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Looking Into The Future
8,000 3.0
7,130
7,500 2.5 1.8
7,000 2.0
1.5 0.6
6,500
1.0
6,000 0.5
2013 2023 2033 2043 0.0
1900 1994 2050
Source: The United Nations (2010)
Source: Food, Land, Population, and the US Economy – Cornell
University / Instituto of Nazionale della Nutrizione (1994)
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Strengths We Are Building On – Industry Leader
Leader and Pioneer in Consumer and Industry Trends
We were the:
● FIRST to introduce premium gold pineapple
● FIRST to complete national distribution network
● FIRST to launch national fresh-cut fruit
● FIRST to achieve GlobalG.A.P.
Source: USDA- 2013 Fruit and Fruit and Tree Nut Yearbook
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Strengths We Are Building On – Leading Market Positions
#1 Marketer of fresh pineapples worldwide
#1 Marketer of fresh-cut fruit in the U.S., Japan, U.K., UAE and Saudi Arabia
Broad Appeal
‒ Transferability of brand to new products and new categories
‒ Ease of entry into new markets
‒ Greater acceptance at a lower cost of entry
Europe
• Fresh & Fresh-cut fruit
North America and vegetables
• Fresh & Fresh-cut fruit • Prepared Food
and vegetables
• Prepared Food
• Protein salads & snacks
Mexico Asia
Sourcing • Bananas
• Avocados • Pineapples
• Vegetables • Fresh-cut fruit
• Non-tropicals
Colombia, Middle East & North Africa
Ecuador, Central • Fresh & Fresh-cut fruit and
America & Brazil vegetables
Sourcing • Prepared Food
• Bananas • Poultry & Meat
• Pineapples
• Melons
• Mangos
• Plantains
• IQF
• Coconuts South
• Greenhouse: America Africa
Tomatoes, Bell Sourcing Sourcing
Peppers, • Avocados • Bananas
Cucumbers and • Non-tropical • Pineapples
Other Vegetables • Berries • Prepared Food
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Strengths We Are Building On – Unmatched Scale and Scope
A Key Differentiator - Quality Control, Lower More Stable Costs and Value-Added Services
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Our Growth Strategy
Growth Strategy – Investing For Long-Term Growth
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Strategy In Action – Grow Existing Products
Example: Del Monte® North America Fresh-Cut Growth
$400
$350
in Millions
Net Sales
$300
$250
$200
$150
2008 2009 2010 2011 2012 2013 2014 2015
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Strategy In Action – Large Market Opportunity
• Desire for convenience
CONSUMERS
packaging
• Health and wellness
• Food safety
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Strategy In Action – Fresh-Cut Products
Trends Play to Our Strengths
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Strategy In Action – Grow Existing Products
Example: Del Monte® North America Avocado Growth
$200
$150
in Millions
Net Sales
$100
$50
$0
2008 2009 2010 2011 2012 2013 2014 2015
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Strategy In Action – New Products
More Value to Customers, Leverage Our Infrastructure and Leverage Our Brand
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Strategy In Action – New Products and Packaging
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Strategy In Action – North America
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Strategy In Action – Europe
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Strategy In Action – Middle East and North Africa
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Strategy In Action – Asia
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Strategy In Action – New Growth Markets
Expanding Global Footprint
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Strategy In Action – Continue to Build Relationships, Grow Sales
Retailers
Foodservice
Casual Dining
& Quick Serve
Warehouse &
Club Stores
Convenience
Stores
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Strategy In Action – Leveraging Infrastructure
Maximizing Revenues From Our Existing Infrastructure to Increase Volume and Reduce Costs
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Strategy In Action – Leveraging Infrastructure
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Financial Performance – Bananas
in Millions
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Financial Performance – Other Fresh Produce
in Millions
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Financial Performance – Prepared Food
in Millions
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SELECTED FINANCIAL HIGHLIGHTS
Financial Performance – Summary Data
in Millions
Full Year 2nd Quarter
2011 2012 2013 2014 2015 2015 2016
Net Sales $ 3,590 $ 3,421 $ 3,684 $ 3,928 $ 4,057 $ 1,134 $ 1,089
Gross Profit $ 320 $ 342 $ 290 $ 365 $ 342 $ 114 $ 145
% margin 9% 10% 8% 9% 8% 10% 13%
Operating Income $ 116 $ 161 $ (28) $ 174 $ 91 $ 74 $ 107
Net Income $ 93 $ 143 $ (34) $ 142 $ 62 $ 64 $ 96
EPS - GAAP $ 1.56 $ 2.46 $ (0.61) $ 2.53 $ 1.17 $ 1.21 $ 1.86
EPS Adjusted* $ 1.82 $ 2.54 $ 1.57 $ 2.74 $ 2.45 $ 1.18 $ 1.75
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Financial Performance – Earnings Per Diluted Share
$2.74
$2.54 $2.45
$1.82 $1.75
$1.57
$1.18
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Financial Performance – Adjusted EBITDA
$232 $244
$219
$192 $178
$119
$88
42
Financial Performance – Operating Cash Flow
in Millions
$269
$231 $231
$197 $180
$173
$109
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Financial Performance – Debt and Cap-Ex
We Have Continued Investing in Diversification and
Expansion Without Adding Significant Debt
in Millions
$582 million spent under stock repurchase
program between 2010 and Q2 2016
$126
Cap-Ex $160
$149
$132
2011 2012 2013 2014 2015
$79 $80
$67
$53
1. Asset impairment and other charges (credits), net, for the quarter and six months ended July 1, 2016 included impairment
charges in Asia and Central America. Asset impairment and other charges (credits), net, for six months ended June 26,
2015 related principally to damages resulting from unfavorable weather conditions in Chile. Additionally, asset impairment
and other charges (credits), net for the quarter ended June 26, 2015 included a credit due to litigation settlement.
2. Gain on disposal of property, plant and equipment, net for the quarter and six months ended July 1, 2016 included gain on
sale of assets comprised of $8.9 million related to the sale of surplus lands in Central and South America. Gain on disposal
of property, plant and equipment, net included gain on sale of assets of $1.3 million for the quarter ended June 26, 2015
and $2.4 million for the six months ended June 26, 2015 principally related to the sale of refrigerated vessels.
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Appendix – Non-GAAP Measures
The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Some of the
information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring,
asset impairment charges, gain on sales of assets and certain other special items, if any. Management believes these
adjustments provide a more comparable analysis of the ongoing operating performance of the business. These adjustments
result in non-GAAP financial measures and are referred to in this press release as comparable operating income, comparable
net income and comparable net income per share. Because all companies do not use identical calculations, our presentation
of these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.
Comparable operating income and comparable net income provide us with an understanding of the results from the primary
operations of our business. We use comparable operating income and comparable net income to evaluate our period-over-
period operating performance because management believes they provide more comparable measures of our continuing
business as they adjust for special items that are not reflective of the normal earnings of our business. These measures may
be useful to an investor in evaluating the underlying operating performance of our business because these measures:
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Appendix – Cash Flow
in M illions
Operating Cash Flow 196 173 109 231 231 179 269
LIABILIT IES
Current Liabilities $ 370 $ 362 $ 383 $ 409 $ 382 $ 411 $ 356
Long T erm Debt 213 124 249 265 253 207 192
Other Liabilities 206 216 207 213 211 216 227
T OT AL LIABILIT IES 789 702 838 887 845 834 775
SHAREHOLDER'S EQUIT Y 1,715 1,831 1,751 1,788 1,751 1,836 1,809
LIAB. & SHAREHOLDER'S EQUIT Y $ 2,504 $ 2,533 $ 2,589 $ 2,675 $ 2,596 $ 2,670 $ 2,584
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