dean foods Gregg Engles Investor Day
Post on 31-Oct-2014
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The following statements made in this presentation are “forward looking” and are made pursuant to the safe harbor provision of the Private 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, (3) our branding initiatives (4) our integration, innovation, and research and development plans, and (5) our cost-savings 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, which are identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K (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 Company's ability to profit from its branding initiatives depends on a number of factors including consumer acceptance of the Company's products. 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.
Certain non-GAAP financial measures contained in this presentation, including adjusted diluted earnings per share, free cash flow, consolidated adjusted operating income and consolidated adjusted net income, have been adjusted to eliminate the net expense or net gain related to certain items identified in our press releases. A full reconciliation of these measures calculated according to GAAP and on an adjusted basis is contained in the appendix of this presentation and in such press releases, which are publicly available on our web site at www.deanfoods.com/investors.
Help you better understand Dean, our opportunities and how we plan to capture them
Explain why Dean Foods is the best investment opportunity in food and beverage today
Our Investment Thesis
$44B category
Leader in conventional and value added milk– 5x size of nearest conventional milk competitor– #1 share in soy and organic, #2 in creamers
Leader across the U.S. refrigerated case– 3x as large as Tropicana– 4x as large as Dannon
Dean Production Facilities
Regional Players (7-35 Production Facilities)
Local Players (<5 Production Facilities)
National chilled DSD and plant footprint
Cost leadership
National selling with local execution
Other Fluid Dairy 8%
Other 2%
Cultured 5%
Other Beverages
5%
Ice Cream 9%
Fresh Milk 71%
National, premium brands
#1 in soy and organic milk; #2 in creamers
Transformation complete
Rachel’s 6%
Other 3%
Land O’Lakes
15%
Horizon Organic
28%
International Delight
20%
Silk 28%
US leader in national long shelf-life private label dairy
Compelling transformation opportunity
Aerosol 8%
Other 2%
Ice Cream Mix 21%
Creamers 41%
Cottage Cheese 10%
Sour Cream 10%
Yogurt 8%
Joe Scalzo
Joe Scalzo
Jack Callahan
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Rick FehrJoe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Gregg Tanner
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Rick Fehr
Chris Sliva
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Gregg Tanner
Rick Fehr
Greg McKelvey
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Gregg Tanner
Chris Sliva
Rick Fehr
Kelly Duffin-Maxwell
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Gregg Tanner
Greg McKelvey
Chris Sliva
Rick Fehr
Steve Kemps
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Kelly Duffin-Maxwell
Gregg Tanner
Greg McKelvey
Chris Sliva
Rick Fehr
Kelly Duffin-Maxwell
Steve Kemps
Joe Scalzo
Jack Callahan
Harrald Kroeker
Debbie Carosella
Paul Moskowitz
Gregg Tanner
Greg McKelvey
Chris Sliva
Rick Fehr
Innovation by Segmentation
Process & Technology
Productivity/Cost Focus
Industry Consolidation
Local
Managed with tribal knowledge and intuition
Small, private company mindset
No investment in innovation or R&D
National
Data, systems and process driven
Deep functional capability and CPG mindset
Category ripe for innovation and R&D
Our Investment Thesis
Conversion
Procurement
Network Optimization
WhiteWave
DSD Distribution
Strengthen our selling and delivery capabilities– Define common market
organization structure – Upgrade marketing capabilities– Elevate selling skills– Standardize in store execution
Continue to drive share
Deliver category-leading innovation
Support our brands with marketing excellence
Continue to migrate sales to a direct model
Provide category leadership to retailers
Supply Chain
R&D
Innovation
Standard process and training
Information systems
Selling skills
New growth platforms– e.g., Hero JV
Go-to-market system
Appropriate acquisitions
2007 2008 2009
$1.20
$1.30
At least$1.55
+19%
Leader in attractive categoriesValuable set of investment opportunities– Extend our low cost position– Drive revenue & profit in our core– Invest for growth
Defined strategies and initiativesSustainable earnings progression over time
Business Overview– WhiteWave: Positioned for Growth
– DSD Dairy: Strengthening our Advantaged Position
Strategic Levers– Extending Our Low Cost Position
– Building R & D Capability at Dean Foods
Financial AlgorithmReception and Exhibits
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