ths treehouse foods 2013 investor day presentation

8/20/2019 THS Treehouse Foods 2013 Investor Day Presentation

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Monday, November 18, 2013

PLMA Investor Day



Forward-looking Statements

2

This resentation may !ontain "#orward-looking statements$% These statements re#le!t the&omany's e(e!tations or belie#s !on!erning #)t)re events that involve risks and )n!ertainties$*ltho)gh the &omany believes that the e(e!tations re#le!ted in s)!h #orward-looking

statements are reasonable, it !an give no ass)ran!e that s)!h e(e!tations will rove to have been!orre!t$ The &omany dis!laims any intention or obligation to )date or revise any #orward-looking statements, whether as a res)lt o# new in#ormation, #)t)re events or otherwise$ These#orward-looking statements may !ontain the words "believe,% "anti!iate,% "e(e!t,% "estimate,%"ro+e!t,% "will be,% "will !ontin)e,% "will likely res)lt,% or other similar words and hrases$Forward-looking statements and the &omany's lans and e(e!tations are s)b+e!t to a n)mber o#risks and )n!ertainties that !o)ld !a)se a!t)al res)lts to di##er materially #rom those anti!iatedand the &omany's b)siness in general is s)b+e!t to !ertain risks, in!l)ding, b)t not limited to, therisks identi#ied in the &omany's Form 10- #iling #or the year ended .e!ember 31, 2012 andForm 10-/ #ilings on #ile with the S&$ o) may get these do!)ments #or #ree by visiting .* onthe S& 4eb site at www$se!$gov or on o)r website www$treeho)se#oods$!om )nder the "5nvestor

elations% se!tion$



The Evolution of Private Label

Sam $ eedChairman, President & CEO

3



DestinationBrands

6rivate 7abel Family Tree

Own Brands

Generic

Premium Tiers

Private Label

Commodity

Value Added



9istori! Milestones

:

18;< The reat *=6 &omany

1<1: >$S$ .istri!t &o)rt

1<28 Marks = Sen!er

1<8 7oblaws

1<88 S)er!enter

1<<3 Sa#eway

200: NS?T9S



vol)tionary For!es

The nd o# an ra@

A etail &onsolidation

A Ni!he Marketing

A 9ome &ooked Assembled MealA 5n#ormation Te!hnology

A Millennial &ons)mer

@The .awn o# a New *ge

;



B83B8C B<3

B<8B10

B112

B120B12;

B133

1:$8D

1;$:D

1C$1D

1C$;D 1C$CD 18$0D

18$3D18$:D

18$8D

1:D

1;D

1CD

18D

1<D

20D

B:0

B;0

BC0

B80

B<0

B100

B110

B120

B130

B10

2008 200< 2010 2011 2012 2013# 201# 201:# 201;#

P er c en t

P en e t r a t i on D

o l l a r s i n

B i l l i o n s

6rivate 7abel .ollars 6rivate 7abel Share

So)r!e? 6a!kaged Fa!ts "The F)t)re o# Food etailing in the >$S$? Shoer 5nsights and Market Eort)nities%, th dition, )ly 2013

etail ro!ery 6rivate 7abel Trends

C

67 E4T9 2( G*N.S



veryone G)ys 6rivate 7abel Food

So)r!e? 55 &ons)mer Shoer 5nsights, Total >S H *ll E)tlets, Total dibles, :2 weeks ending 11I03I2013

B::1B:<: B;1:

B;:1 B;;; B;;2 B;38

B0

B100

B200

B300

B00

B:00

B;00

BC00

J B1: B1:K B2:K B3:K B:0K BC0K B100 K

P

r i v a t e L a b e l B u y i n ! a t e

" #h$ vs$%A

&'$( )*$'" &*$+" &*$," &*$-" &'$," &*$."

8

99+% Household Penetration Across All Income Levels



6rivate 7abel enome

Parity

#ost

/alue

Identity

<

!ane



Storewide 6rivate 7abel rowth

So)r!e? Nielsen S!antra!k, F.M w 4MT :2 weeks ending 12I30I200; and Nielsen S!antra!k, Total >$S$ H *ll E)tlets &ombined, :2 weeks ending 08I31I2013,>6&-!oded

3;D

28D

20D1<D 1<D

1CD 1CD

1:D 1D

11D

1D

0D

:D

10D

1:D

20D

2:D

30D

3:D

0D

.airy .eli FroLenFoods

Fresh6rod)!e

FreshMeat

9G* Non-Foodro!ery

.ryro!ery

6a!kagedMeat

eneralMer!h

*l!oholi!Gevs

P r i v a t e L a b

e l D o l l a r 0 h a r e

-''1 -'*.

*($+" A/GK2$1 ts

#hane )'$, &1$2 &-$+ &3$, &*$( &3$' &+$- &*$* &*$+ &-$3 &'$+

10



&ons)mers = Nat)ral Sele!tion

11

Private Label Mindset

A ood *lternative C3DO

A P)al /)ality ;DO

A Qal)e #or Money ;CDO

A 5nnovation 6arity :3DR

A Store Sele!tion 3 Fa!tor

So)r!es? 1 Nielsen 9omes!an, 6anel Qiews s)rveys, 20132 Saat!hi = Saat!hi U eort, 200C3 6a!kaged Fa!ts "The F)t)re o# Food etailing in the >$S$? Shoer 5nsights and Market Eort)nities%, th dition, )ly 2013



0D

:D

10D

1:D

20D

2:D

30D

3:D

0

:,000

10,000

1:,000

20,000

2:,000

1<<8 1<<< 2000 2001 2002 2003 200 200: 200; 200C 2008 200< 2010 2011 2012 7TM

Private Label 0hare of 4ew Products in 50 6ood 7 Drin8

N)mber o# New 6rod)!ts 6rivate 7abel D o# New 6rod)!ts

rowth Thro)gh 5nnovation

So)r!e? Mintel N6., as o# E!tober 2013 12

Tree9ouse Era



6rivate 7abel S)lier .N*

Brand Innovation

#ustomerMar8etin

Lowest #ost

6ast 6ollower

4BE :uality

Product

Services

13



7everage E)r o-To-Market 6resen!e

1VNorth *meri!an etail ro!ery net reven)e sales #or last twelve months ended Setember 30, 2013, er S& #ilingsSo)r!e? 55 with Management stimates

!an8in PL

;* ;* ;* ;* ;* ;* ;* ;* ;-

0D

2:D

:0D

C:D

100D

Powdered#reamer

06 PowderedDrin8

0inle 0erve#offee

Pic8les 7!elish

0aladDressin

#ondensed0ou<

Mac 7 #heese Oatmeal 0alsa

5 n i t 0 h a r e o

f P r i v a t e L a b e l

T90 0hare of Private Label in #ore #ateories

=*$1Bn in !etail 0alesV



S)rvival o# the Fittest in 201

1:

Mar8et<lace

A *ss)me a #lat !ons)mer se!tor

A (e!t marginal in)t in#lation

0ystems

A aise rod)!tivity thro)gh simli#i!ation

A 5nvest in GQF in#rastr)!t)reGrowth

A enerate organi! growth

A *!P)ire another growth !ategory

A (tend rivate label beyond !enter o# the store

ST* EN ST*TW

Growth

P r o f i t a b i l i t y

7ow 9igh

7 o w

9 i g h



* New 6rivate 7abel 6aradigm

1;

Destination Brands

A The store is the brand

A elevant brand ersonalityH 6rod)!t

H nvironment

H (erien!e

A motional link to li#estyle

A .eliver beyond e(e!tations

A Grand val)e X rod)!t )tility



E)r volving Eort)nity

9ealth 7Beauty Aids

4on)6oodsGrocery

GeneralMerch

4on 0helf0table

Edibles

Dry Grocery

Private Label Grocery=**- Billion

1C

Non Shel# Stable dibles in!l)des .airy, FroLen Foods, Fresh 6rod)!e, .eli, 6a!kaged Meat, Fresh Meat and *l!oholi! GeveragesSo)r!e? Nielsen S!antra!k, Total >$S$ H *ll E)tlets &ombined, :2 weeks ending 08I31I2013, >6&-!oded

*,$3"rowth rate-''2)-'*-



To MisP)ote &harles .arwin@

18

It is not the strongest nor the most intelligent that survives, it is the one most adaptale to change!



Business 0im<lification

&hris SlivaEVP, TreeHouse Foods & President, Bay Valley Foods

1<



6rivate 7abel rowth *ven)es

20

To-7inerowth

row Share

o# &)rrent&ategories

5nnovate to

New&ategories *!P)isitions

G)siness Simli#i!ation and Eerational (e!)tion



The Tree9o)se S)!!ess Model

Broadenin Product Portfolio

21

*n in!reasingly !aable !entraliLed&)stomer Marketing, 6rod)!t .eveloment

and S)ly &hain Management Team

Fo!)s on large and growing seto# !)stomers

nhan!edby

Sold

to



&hoi!e is 5merative to E)r S)!!ess

"The resources we need to grow ato)r strategi! !)stomers and in o)r

growth !ategories are all around us

brilliantly disg)ised as im<ortant wor8 that drives no return$%

22



Tree9o)se Fo!)s En G)siness Simli#i!ationA Tree9o)se's #o!)s on G)siness Simli#i!ation will

yield the reso)r!es we need to !ontin)e to grow theb)siness$

23

Business0im<lification

GrowthInvestments



Simli#i!ation 4itho)t Sa!ri#i!ing rowth

2

0alad Dressin !evenue($ in millions) A Ever C00 Form)las H eliminate

the 2:D that drive 1D o#reven)e

A Ever 0 &ontainers - emhasiLeNG a!kaging

A liminate Ene Gat!h )ns Hdro lowest vol)me S>'s

A ed)!e Man)#a!t)ring

ed)ndan!ies H better lanningand #ore!asting tools to imroveline s!hed)ling

Invest savins to maintain rowth

B0

B:0

B100

B1:0B200

B2:0

B300

B3:0

2008 200< 2010 2011 2012 20137TM



6rod)!t Segmentation .e#ines 5nvestment

Strategy

2:2:

Generate#ash

Invest 6or

Growth

!educeE><osure

Im<rove!eturns

E4T9LO? 9IG9

L O ?

9 I G 9

6 3 E F 5 T * G 5 7 5 T 1

0ho<<er@nowlede

#ustomer Mar8etin

Product Develo<mentand 0trateic Acuisition

Business 0im<lification

#ATEGO!IE0



&)stomer Segmentation .e#ines

6arti!iation Strategy

2;

Tactical#ollaboration

0trateicPartner

#ommodity0u<<lier

0trateic0u<<lier

E4T9LO? 9IG9

L O ?

9 I G 9

Q E 7 >

M 0

#ustomiCed0ervices

Product Differentiation

O<erational Efficiency

#50TOME!0



The 6ath Forward

A .o)ble o)r net reven)evia o)r 3 &ore rowthaven)es

A row the siLe I !ost o# o)r!entral !aabilities at lessthan the rate o# reven)e

A 4ork with o)r !)stomerartners to drive o)t low Ino val)e added !ost

28

A Broadenin Product Portfolio

An Increasinly #a<able#entraliCed Team

6ocus on Lare Growin#ustomers



The 0tate of the Private Label

#ustomers and #onsumers

9arry Everlyenior Vi!e President, "ar#etin

2<



22D21D 20D

22D 22D23D

2D2:D2D 23D

2D 2D2;D 2CD

*ll

9o)seholds

&are#ree Savvy Shoers Etimisti!s Start->s &a)tio)s and

4orried

.owntrodden

.ollar Share >nit Share

6rivate 7abel *!!eted *!ross &ons)mer

ro)s

30

$

Total dible StoreV

6rivate 7abel Grand Share by !onomi! Segment

VTotal dible Store? FroLen, eneral Food, e#rigerated, Geverages (!l)des 7iP)or

So)r!e? 55 &ons)mer NetworkY, Total >S *ll E)tlet, 7atest :2 4eeks nding 0;-1;-13

9igher 5n!ome 7ower 5n!ome



4inning etails .rive both Grands and

6rivate 7abel

32

6rivate7abel

:$CD

Grand 2$D

Total 3$3D

9ighlightedetailers

F$out<erform the mar8et by a sinificantmarin

0$1D

0$D

0$2D

M>7ETotal

!etailers that have concurrently usedbrands and <rivate label to drive rowthF

So)r!e? 55, Market *dvantage, /3 elease$ Samle o# 12 retailers shown H 1; total demonstrated /3 brand and rivate label growth



.i##erentiation is &riti!al to &at)re

Today's &ons)mers

33So)r!es? Fig$ 1? abobank, 2013 Fig$ 2? 5GM 5nstit)te #or G)siness Qal)e analysis, 2008, 6rivate 7abel Store Grands esear!h, 2013

Fig$ 1? 6remi)m and val)e a!kaged #ood segments growingat the e(ense o# the mid-market, 2013-201C

Fig$ 2? 9ybrid vs$ traditional !ons)mtion atterns

%%' O retailers identiied dierentiation as the most im*ortant role o their storebrand *roram



(erien!e and Te!hnology .riving

Millennial 6)r!hase Gehaviors

3So)r!es? Symhony55 etailer = Grand 7oyalty S)rvey, /2 2012, Symhony55 Market 6)lse S)rvey, /2 2012

"ar#etin Communi!ationElements till Criti!al+



M)lti-Fa!eted Grand vangelism

3:

Tailored Priate -abel Prorams



4inning etailers are >sing M)ltile

Strategies to 4in

3;

#onsumer 0ho<<er @PIsInde> vs %A

Total 50Multi Outlet

?innin!etailersH

" 99 Buyin *'' *'.

" of Buyers ->& Buyers *'' *'*

5nit 0ales <er Buyer 22 *'+

Product Tri<s <er Buyer 22 *'-

5nit 0ales <er Tri< 22 *'*

Buyer #onversion Amon !etailer 0ho<<ers *'' *'-

!etailer 0hare of Dollars amon #onvertedBuyers *'' *'.

V*verage o# 5ndi!es #or 4inning etailers

• Gettin 0ho<<ers to buymore Private LabelFmore

often 7 more <er tri<$

• Generatin more Private

Label Trial more 99sJ 7!e<eat$

• #onvertin more 0ho<<ersinto Private Label buyerswhile rowin Private

Label loyalty$



4inning etailer (amle

3CSo)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13

/3 2013 &hange in 67 *ssortment 5temsIStore

/3 2013 67 /)ality Mer!handising

A (anding val)able &ore egional etailer!ons)mer ho)seholds

A &omm)ni!ating higher val)e 6rivate 7abelto !ons)mersIshoers with in-store/)ality Mer!handising ta!ti!s

A stablishing a better *ssortment, addingmore items than M)lti-E)tlet &ometition

Core !onsumer is more val)able and growing #asterthan Aerae !onsumer

Above averae rowth due toK

So)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13

So)r!e? 55 Market *dvantage 6ES, Total >S M>7E /3 vs * 6 10$0;$13

#ore !etailerPrivate Label

#onsumer

99 5n!omeBC0K

99 SiLe K

1K &hildren

99's G)ying = &onversion

27

39

Trips per Buyer

& o r e

* v g $

$264

$402

Dollars per Buyer

FreP)en!y = G)y ate

Tris Ir .ollarsIr 5nde( vs *

& o r e

* v g $ 103

112

HH's Buying

& o r e

* v g $

101

106

Buyer Conversion

& o r e

* v g $

13.4

21.4

Total US - Multi Outlet

Regional Grocer

40.7; -0.4

55.9; +0.2

Total US - Multi Outlet

Regional Grocer



#ost to 0erve

)dy &larkenior Vi!e President, Customer olutions

38



The ole o# 7ogisti!s

3<

#ollaborative

! e

s < o n s i v e

0hi< in 6ull

On Time Aile

Low #ost

E f f i c i e n t

-oisti!s is the a!e o the *artnershi* in Priate -abel

Marin Enhancement

"orecast Production #istriution

Store

$eplenishment

Consumer

Programs

"ormula

ptimi&ation



The volving .istrib)tion Network

A Meeting the needs o# all !)stomers

0

.ire!t #rom 6rod)!ing

6lant

7owest &ost Gra!ket

F)ll Tr)!k

F)ll 6allet

4eeklyor Gi-4eekly Erder&y!le

.ire!t #rom 6rod)!ing6lant

7owest &ost Gra!ket

F)ll Tr)!k

F)ll 6allet or &ase 6i!k

Mi(ed&ategories toea!h 4eekly orGi-4eekly orders

.ire!t #rom 6rod)!ing6lant

7owest &ost Gra!ket

6artial Tr)!k

F)ll 6allet

or &ase 6i!k

Mi(ed&ategories to

ea!h 4eekly orGi-4eekly orders



The ##i!ien!y Qarian!e

1

L'

&ost to Serve &)stomers

!educe #ost byKSingle G)ying E##i!e

6ull PalletsF)ll Tr)!ks##i!ient .eliveries or 6i!k)sNo Se!ial 9andling eP)ests6ull EDI #ommunicationsEn Time FT 6ayments

6roviding *deP)ate 7ead Time*!!et Standard Shel# 7i#e ISto Shi 7i#e#ommon 6ormulas Pac8ain

HI(H

&ost to Serve &)stomers

Add #ost byK7imited Te!hnology

.e-&entraliLed 6)r!hasingSmall Erder SiLes9ih #ase Pic8 FreP)ent .eliveries7T7 ShimentsErder &hanges

.ed)!tionsInefficient !eceivin PracticesM)ltile Erders er Tr)!k!educed 0hi<<able Days

>niP)e Form)las or 6a!kaging

Providin #ost to0erve based <roramsto meet the needs of a

variety of customersu<<ly chains$



(e!ted es)lts

2

&hanges in&)stomer

Gehavior

7ower*verage

6rod)!t &osts

Qol)meains

StreamlinedErder

F)l#illment

Margin

ains

A #ulture of#ost to 0erve

Strategic,

Collaorative )*ransparent

Partnerships



Tra!king the S)!!ess H &)stomer Qiew

3On Time .ele!ts /eliered Orders



Tra!king the S)!!ess HTree9o)se Qiew

200; - 2013?

-'' Gasis 6oint 5mrovement



Acuisition and Interation 0tratey

Todd 7eGlan!Vi!e President, tratey

;



5ntegration 6laybook .rives (e!)tion

A *dvan!e lanning

A &ross-#)n!tional in#rastr)!t)re

A &lear g)ideosts and milestones

A ob)st tra!king and monitoring

C



Team 5n#rastr)!t)re

0teerin#ommittee

Proect

ManaementOffice

InterationTeam

0u<<ort6unctions

InterationTeam )

O<erations

InterationTeam

Go to Mar8et

Set dire!tion and make de!isions

&oordinate the e##ort

.rive e(e!)tion

8



5nitiative 6rioritiLation

Immediate Im<act

E a s e o f E >

e c u t i o n

Multi)faceted assessment

0u<<ortin Activities :uic8 ?ins Must Do

0electively launchearly in interation

• ase o# imlementation

– F)n!tionalinterdeenden!ies

– Time reP)ired

– eso)r!es reP)ired

• 5ma!t

– Synergy ima!t

– &)lt)ral ima!t – &onsisten!y with

g)iding rin!iles

7ow 9igh

7 o w

9 i g h

De<rioritiCe over6irst 2' Days

F)ll S*6

Erder to

&ash

ey*!!o)nts

5ntegrate

mail

6ro!)re

ment

S)ly&hain

<

SEUwork



Tra!king and Monitoring

A Everview o# #)n!tional integration agenda

A Groad timelines #or e(e!)tionA 5nterdeenden!ies and otential risks to lan

A Everview o# #)n!tional integration agenda

A Groad timelines #or e(e!)tionA 5nterdeenden!ies and otential risks to lan

Team #harters

A &riti!al ath a!tivities and seP)en!ingA .eliverable ownersA &riti!al ath a!tivities and seP)en!ingA .eliverable owners

Team ?or8<lans

A 6rogress against #)n!tional agendas

A >!oming a!tivities and riorities

A isks and remediation lans

A 6rogress against #)n!tional agendas

A >!oming a!tivities and riorities

A isks and remediation lans

?ee8ly 5<dates

:0



&ase St)dy H &ains

A Transa!tion !losed )ly 1, 2013

A 5nnovation lat#orm in remi)m saladdressing and mayonnaise

A ateway to North ast marketA .eloyed team to g)ide integration

A &at)red ro!)rement e##i!ien!ies

A En-tra!k to deliver against stated#inan!ial and strategi! e(e!tations

:1



Acuisition Landsca<e

rik ahlerenior Vi!e President, Cor*orate /eelo*ment

:2



Eort)nity &reation

T90 M7A

0tratey

4ew

#ateories

Bolt)ons

4ewPlatforms

0trateic

!elationshi<s

:3



nhan!ed *!P)isition Filter

#om<any Attractiveness#ateory Dynamics 0trateic 6it with T90

A 7everage !ore!ometen!ies

A (and o)r horiLons

A 9istori!al er#orman!eand market osition

A 5nnovation !aabilities

A &ategory siLe andgrowth

A &)rrent and emerging!ons)mer trends

:



*!P)isitions *ligned with &ons)mer



*!P)isitions *ligned with &ons)mer

Trends@

:;

#onvenienceBetter)6or)%ou

h # 201



Themes #or 201

:C

Buoyant M7A

Mar8et

T90 Acuisition

Proficiency

Better 4ot Bier Invest 6or the 6utureOver 0cale

0u<<ort Portfolio0tratey

Drive 9iher Marinsand !OI



6inancials 7 #oncludin !emar8s

.ennis iordan

EVP and Chie Finan!ial Oi!er

:8

S t b 2013 E ti S t



Setember 2013 Eerating Segments

:<

+ine months ended Septemer ,-

./ in thousands0

-'*. -'*- IncDecJ -'*. -'*- IncDecJ -'*. -'*- IncDecJ

4et 0ales B1,1;3,C33 B1,13:,20 -$3" B2;,3:C B2:3,0;1 +$3" B20:,:1; B201,0C< -$-"

DOI B188,C0: B1C;,83: 1$(" B3:,888 B32,8 2$." B38,038 B30,<C -+$("

DOI " 1;$2D 1:$;D 1' b<s 13$;D 13$0D 1' b<s 18$:D 1:$2D ..' b<s

4orth American !etail Grocery 6ood Away 6rom 9ome Industrial 7 E><ort

Strong toline growth, both organi! and thro)ghstrategi! a!P)isitions, !omlemented by oerating

e##i!ien!ies, res)lts in solid .E5 margin imrovement$

T 9 . bt & it



Outstandin as

of 2.'-'*. Availability Interest !ate E><iration

evolving &redit 1 B:0: mm B23: mm3 7K120 bs Setember 201;

Senior Notes: Z Z ;$03D Fi(ed Setember 2013

9igh ield Notes B00 mm Z C$C:D Fi(ed Mar!h 2018

Total Debt =2'3 mm2

Tree9o)se .ebt &aa!ity

;0

Notes?1 *mended revolver in Setember 2011 to tighten ri!ing by :0bs a!ross the grid and e(tended mat)rity by 1 year2 5n!l)des B:$ million o# ta( in!rement #inan!ing and other debt 3 (!l)des o)tstanding letters o# !redit totaling B10$8 million that are iss)ed b)t )ndrawn

*li!able rate as o# Setember 30, 2013: Senior notes aid o## in Setember 2013 )sing !aa!ity )nder revolver

6ro#orma leverage is e(e!ted to be less than 3$0 times debt to G5T.*at 12I31I13 a#ter the a!P)isition o# *sso!iated Grands is !omleted$

Q l * l i Ni M th 2013



Qol)me *nalysis HNine Months 2013

;1

./ in thousands0 !etail 6ood Away Industrial

Grocery 6rom 9ome 7 E><ort Total

2012 Net sales 38,;;3B 100$0D 8<,82CB 100$0D ;3,;22B 100$0D :38,112B 100$0D

Qol)me I Mi( <,02 2$3D :,1C< -:$8D 1,;0 2$3D :,30: 1$0D

6ri!ing 3:8 0$1D 1,1; 1$3D 1:3 -0$2D 1,3;< 0$3D

Net #rom oerations <,382 2$D ,01: -$:D 1,30C 2$1D ;,;C 1$2D

*!Ps I rationaliLation 10,3:2 2$CD 11,8; 12$8D 3,:18 :$:D 2:,3:; $CD

Foreign !)rren!y 2,<0 -0$;D 2< -0$:D C3 -0$1D 2,<<2 -0$;D

2013 Net sales 01,<0CB 10$:D <;,8;<B 10C$8D ;8,3CB 10C$:D :;C,1:0B 10:$D

1 2

3

1 H (!l)ding so) de!lines, d)e to artial loss o# a retail !)stomer, retail gro!eryvol)meImi( in!reased $2D

2 H .e!lines rimarily in the aseti! and i!kles !ategories

3 H Nat)rally Fresh a!P)isition in *ril, 2012, the *seti! !heese and )ddingb)siness #rom *sso!iated Milk 6rod)!ers, 5n!$ in November, 2012 and the&ains Food a!P)isition in )ly, 2013



201 4orking *ss)mtions




A New a!P)isitions will have lower than average grossmargins - in the range o# 1CD to 18D$

A ear Ene o# new a!P)isitions generally add very little

in!remental reven)esH Sales team integration a!tivities

H 7ong sales lead times in rivate label

;3





A 201 S=* sending?H 5n!remental 5T sending to address the !onversion o# &ains and

*sso!iated Grands on a more a!!elerated basisH *dditional investments in demand lanning and #ore!asting to

a!!ommodate new b)sinesses

H (e!t S=* leverage to very modestly in!rease as a er!ent o# net

sales in 201

A Ta( rates sho)ld revert to histori! average o# abo)t 32D

A 5nterest rates will rise only slightly in 201

A F)t)re a!P)isitions will be in!remental to these ass)mtions;

ths treehouse foods 2013 investor day presentation

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