Sept 2009 Hain Celestian HAIN Presentation

8/14/2019 Sept 2009 Hain Celestian HAIN Presentation

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Over a Decade of Changing the

Way the World Eats

A Healthy Way of LifeTM

Barclays Capital

Back -to-Schoo l Conference

September 10, 2009


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Mission Statement Business Strategy


of natural and organic products

by anticipating and exceeding consumer expectationsin providing quality, innovation, value and convenience.

We are committed to growing our Company

while continuing to implement environmentallysound business practices and manufacturing processes.

Our Business Strate is to inte rate all of our brands

under one management team and employ a uniform marketing,sales and distribution program. We capitalize on our brand equity

and the distribution achieved through each of our acquired businesseswith strategic introductions of new products that complement

existing lines to enhance revenues and margins.

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Hain Celestials Worldwide Operations

Fiscal Year 2009 Sales

We manufacture, market, distribute, and sell

natural and organic food and personalcare products.

.

Euro e

Our products are sold and marketed tospecialty and natural food distributorsand to supermarkets, supernaturals,natural food stores and other retail

classes of trade includin mass-market

$153.1MM

13.5%

Canada

$55.1MM

stores, drug stores, foodservice channelsand club stores.

We have approximately 2,000 dedicatedemployees worldwide led by a strong

.

professionals.

USA

$927.2MM

.

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Key North American and European Brands

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Market Position

-cereal, cookies and bars; nut butters; oils and baking ingredients; soup; fresh;frozen; snacks and personal care.

Hain Celestials products are generally priced at a 10-15% premium toconventional consumer packaged goods.

Minimal exposure to private label, where top selling categories are dominatedby dairy and produce where Hain Celestial has no presencemilk, eggs,carrots, salad greens, spinach and tomatoes.

75% of the Hain Celestial food products retail for less than $5.00.

Hain Celestial operates in Canada, Belgium, Germany, the United Kingdom andin Asia, through an alliance with Yeo Hiap Seng Limited, with operations fromoutside the United States representing 18% of sales in fiscal year 2009.

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Hain Very Well Positioned in Growth Categories

Top 15 Categories: % Unit Growth (FDM w/WM)

7.9

14.6

Seasonal GM

Canning & Freezing Supp

5.2

5.9

6.1

Dry Mix Prepared Foods

Fresh Meat

Wine

3.7

4.2

4.3

Baking Mixes

Vitamins

Pasta

Back to basicscontinues

2.5

2.9

.

Yogurt

Ref Juices & Drinks

zn ove es

2.1

2.3

.

Condiments, Gravies & Sauces

Cheese

a ng upp es

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.

Source: Scantrack, a service of The Nielsen Company; (FDM w/ Walmart)52 weeks ending 06/13/09 (versus prior year) minimum $100 million in sales

Hain Celestial Categories


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More At-Home Meal Preferences

% U.S. Households Claiming

37

28

37

24Eat Breakfast at Home Much More Often

Eat Dinner at Home Much More often

2323

20Bring Lunch to Work/Pack Lunch Much

More Often

32

24

32

22Eat Fast Food Much Less Often

Eat Dinner at Restaurant Much Less Often

24

2420Bring Prepared Meal or Home Delivery

Much Less Often

Apr '08

Oct '08

2020

oose a ess xpens ve es auran

Much More Often

pr

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Source: Homescan, a service of The Nielsen Company PanelViews Economic Impact Survey


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Winning Label Claims, but Slowing Growth for Many

Fiber

Fructose Corn Syrup Free

Omega

Probiotic

Antioxidants

Protein

Natural

Reduced Calorie

GMO Free

Lactose Free

Carb Conscious

No MSG

0 10 20 30 40 50 60

% Change in Units

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ource: can rac a e ren s, serv ces o e e sen ompany; ex- a mar wee s en ng versus pr or year

Hain Celestial Categories


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Well-Developed Infrastructure

Significant expertise in sourcing natural and organic

Procurementproducts

Ability to source organic products in an environment of

rising demand

Manufacturing

Effective network of owned and leased manufacturingfacilities and third party co-packers

plyChai y o mee eman or na ura an organ c pro uc s

made to rigorous quality specifications and USDAstandards

og st cs anInventory

Management

Su

portfolio

Strong inventory management and control proceduresin lace

MIS

Advanced management information and financialmanagement systems

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y o op m ze repor ng un per ormance


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Responding to Current Economic Environment

Sales

Focus on Core SKUs with Strategic Initiatives on Value Investments andLeveraging Superior Innovation

Positioned for a turnaround in European Operations with new customers andconsolidation of facilities

Hain Pure Protein has been deconsolidated

Moderating Commodity Costs with the Benefit of Price Increases

Internal and External Productivity Initiatives

Consolidation of Job Functions and Facilities

Position the Company for Challenging Economy with Consolidation ofOperations

Balance Sheet

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Cash Conversion Debt Reduction


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Balance Sheet

6/30/2009

Current Assets 349.1$urren a es .Working Capital 212.6$

Current Ratio 2.6Total Assets 1,123.5$

Total Debt 258.4$

o a qu y .

Debt to Equity 36.8%

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Fiscal Year 2009 Highlights

Re orted Solid Results at Hain Celestial U.S. includin CelestialSeasonings Turnaround Despite Challenging Economic Times

the Leading Natural and Organic Products Company

Diversity of Business in Varied Product Categories in the United States,Canada and Europe

License Agreement with Martha Stewart Living Omnimedia to ProduceNatural Home Cleaning Solutions, a New Category for FY10

Fiscal Year 2010 Guidance, excluding Hain Pure Protein

Sales $1.010 Billion to $1.030 Billion, 4-6% Growth

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arn ngs er are o . o .Guidance includes stock compensation expense for the full year and Daily Bread consolidation into Luton facility in thefirst quarter


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Reconciliation of GAAP Results toNon-GAAP Presentation

Reconciliation of adjusted to GAAP basis:Years Ended June 30

FY 2008 FY 2009

Gross Profit

Adjusted basis 298.7$ 284.4$

Factory start-up, absorption and integration costs (7.5) (14.4)

Restructuring and sku rationalization (6.9) (8.8)

Others (2.2)

as s . .

FY 2008 FY 2009

SG&A Expenses

. .

Stock-based compensation 2.1 7.2

Professional fees (net of insurance recovery in 2009) 5.8 1.4$

Restructuring expenses 3.9 4.1

Settlement 1.4

Others 2.1

GAAP basis 207.6$ 215.0$

FY 2008 FY 2009 FY 2008 FY 2009

Net Income EPS

. . . .

Stock-based compensation (2.9) (4.5) (0.07) (0.11)

Professional fees (net of insurance recovery in 2009) (3.5) (0.9)$ (0.08) (0.02)

Factory start-up, absorption and integration costs (5.4) (9.9) (0.13) (0.24)

Restructuring and sku rationalization (6.9) (8.3) (0.16) (0.20)

Gain on disposal 1.2 - 0.03 -

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ett ements . .

Impairment of intangibles (48.5) (1.20)Others (1.8) (0.06)

GAAP basis 41.2$ (24.7)$ 0.99$ (0.61)$


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Over a Decade of Changing the

Way the World Eats


Barclays Capital

Back -to-Schoo l Conference

September 10, 2009

Sept 2009 Hain Celestian HAIN Presentation

Documents

Transcript of Sept 2009 Hain Celestian HAIN Presentation