ths treehouse foods 2014 investor meeting

8/20/2019 THS TreeHouse Foods 2014 Investor Meeting

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Monday, November 17, 2014

PLMA Investor Day


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Forward-looking Statements

This presentation may contain “forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995.” Forward-looking statements include all statements thatdo not relate solely to historical or current facts, and can generally be identified by the use ofwords such as “guidance,” “may,” “should,” “could,” “expects,” “seeks to,” “anticipates,” “plans,”

“believes,” “estimates,” “approximately,” “nearly,” “intends,” “predicts,” “projects,” “potential”

“promises” or “continue” or the negative of such terms and other comparable terminology. These

statements are only predictions. The outcome of the events described in these forward-looking

statements is subject to known and unknown risks, uncertainties and other factors that may causethe Company or its industry’s actual results, levels of activity, performance or achievements to be

materially different from any future results, levels of activity, performance or achievementexpressed or implied by these forward looking statements. TreeHouse’s Form 10-K for the periodending December 31, 2013 and other filings with the SEC, discuss some of the risk factors thatcould contribute to these differences. You are cautioned not to unduly rely on such forward-

looking statements, which speak only as of the date made, when evaluating the informationpresented during this conference call. The Company expressly disclaims any obligation orundertaking to disseminate any updates or revisions to any forward-looking statement containedherein, to reflect any change in its expectations with regard thereto, or any other change in events,conditions or circumstances on which any statement is based.

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Today’s Agenda

Topic Presenter

Financial Review Tim Young

The Branding of Private Label Sam K. Reed

Building The TreeHouse Brand Through Customer Intimacy Chris Sliva

Following the Private Label Consumer Rachel Bishop

Winning in Single Serve Harry Overly

Flagstone Foods Paul Lapadat

Center of Store Growth Mike Axelrod

2015 Working Assumptions Dennis Riordan

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Financial Review

Tim Young

Vice President and Controller

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September 2014 YTD Results

2014 2013

Sales $2,042,589 $1,633,606

COGS 1,615,333 1,294,603

Gross Profit 427,256 339,003

Operating Expenses 284,416 212,486

Other Expenses 58,262 35,908

Pre-Tax Income 84,578 90,609

Income Taxes 28,615 26,405

Net Income $55,963 $64,204

Fully Diluted Shares 39,259 37,353

Fully Diluted EPS $1.43 $1.72

Adjusted Net Income $99,119 $82,503

Adjusted EPS $2.52 $2.21

Nine months ended September 30

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September 2014 YTD Results

2014 2013 2014 2013

Sales $2,042,589 $1,633,606 $2,042,589 $1,633,606

COGS 1,615,333 1,294,603 1,600,061 1,274,924

Gross Profit 427,256 339,003 442,528 358,682

20.9% 20.8% 21.7% 22.0%

Operating Expenses 284,416 212,486 267,233 206,384

Other Expenses 58,262 35,908 29,282 36,098

Pre-Tax Income 84,578 90,609 146,013 116,200

Income Taxes 28,615 26,405 46,894 33,697

Net Income $55,963 $64,204 $99,119 $82,503

Fully Diluted Shares 39,259 37,353 39,259 37,353

Earnings Per Share $1.43 $1.72 $2.52 $2.21

Nine months ended September 30 Nine months ended September 30

Reported Adjusted

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September 2014 Operating Segments

Nine months ended September 30

($ in thousands)

2014 2013 Inc/(Dec) 2014 2013 Inc/(Dec) 2014 2013 Inc/(Dec)

Net Sales $1,489,014 $1,163,733 28.0% $284,633 $264,357 7.7% $268,942 $205,516 30.9%

DOI $230,901 $188,705 22.4% $33,837 $35,888 -5.7% $45,546 $38,038 19.7%

DOI % 15.5% 16.2% 11.9% 13.6% 16.9% 18.5%

North American Retail Grocery Food Away From Home Industrial & Export

Strong topline growth, both organic and throughstrategic acquisitions, complemented by operating

efficiencies. DOI margin improvement, however,

reflects the effect of recent acquisitions.7


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Volume Analysis –Nine Months 2014

($ in thousands) Retail Food Away Industrial

Grocery From Home & Export Total

2013 Net sales 1,163,733$ 100.0% 264,357$ 100.0% 205,516$ 100.0% 1,633,606$ 100.0%

Volume / Mix 64,483 5.5% (1,546) -0.6% 6,189 3.0% 69,126 4.2%

Pricing (4,274) -0.4% 1,139 0.4% (979) -0.5% (4,114) -0.3%

Net from operations 60,209 5.2% (407) -0.2% 5,210 2.5% 65,012 4.0%

Acqs / rationalization 275,863 23.7% 22,644 8.6% 58,492 28.5% 356,999 21.9%

Foreign currency (10,791) -0.9% (1,961) -0.7% (276) -0.1% (13,028) -0.8%

2014 Net sales 1,489,014$ 128.0% 284,633$ 107.7% 268,942$ 130.9% 2,042,589$ 125.0%

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Outstanding asof 9/30/2014

Availability Interest Rate Expiration

Revolving Credit (1) $654 mm $235 mm(3) L+120 bps(4) May 2019

Term Loan(5) $299 mm ― L+175 bps May 2021

Acquisition Term Loan $199 mm ― L+200 bps May 2019

High Yield Notes $400 mm ― 4.875% Fixed March 2022

Total Debt $1,552 mm(2)

TreeHouse Debt Capacity

Notes:(1) Entered into a new revolving credit agreement in May 2014, with an expiration date of May 2019(2) Includes $10.8 million of tax increment financing and other debt(3) Excludes outstanding letters of credit totaling $10.9 million that are issued but undrawn(4) Applicable rate as of September 30, 2014

Proforma leverage is expected to be less than 3.5 times debt to EBITDA at 12/31/14.

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Growing Strong, Standing Tall

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Sam K. Reed

Chairman, President & Chief Executive Officer

The Branding of Private Label

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The Evolution of Private Label

It is not the strongest nor the most intelligent that

survives, it is the one most adaptable to change.

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A Decade of Change…

THEN NOWBaby Boomers Consumer Millennials

Generic NBE Products OPP Premium Organic

3 Squares Meal Occasions Grazing

Lite & Diet Nutrition Phytochemicals

Eco-friendly Social Responsibility "Locavores" & B4U

…in Food

…in Grocery

…in Private Label

Super Centers Stores Aldi & Whole Foods

Private Label Store Brands Destination Brands

Center of Store Shopping Perimeter Racetrack

Coupons Deals Apps

Peapod Convenience AmazonFresh

Mass Marketing Communication Social Media

Meta Data

Allergens Food Safety GMOs

…in Technology

Lowest Landed Cost Competitive Advantage Value Without Compromise

Cott & Ralcorp Leaders Perrigo &

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TreeHouse Foods DNA

Brand Innovation

CustomerMarketing

Lowest Cost

Fast Follower

NBE Quality

Product

Brand

Service

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Elements of THS Strategy

Our strategic construct is rooted in six fundamental tenets:• Customer brands and custom products provide an unparalleled opportunity for sustained

growth across the North American food and beverage industry.

• Our Go-To-Market scheme is based upon a portfolio strategy of categories,customers and channels designed to generate economic scale, customer preference

and financial premium.• It is our business system of partnership with strategic customers that brands THS as

offering “value without compromise,” thereby creating and sustaining our competitive

advantage.

• Economic advantage in private label, unlike brands that rely upon a few large scale, marketwide elements, must be derived from a multitude of small scale, category and customerdifferentials in product, pricing, cost and service.

• Our financial imperative is to optimize long term shareholder value on a risk adjusted basis,subject to fulfilling our obligations to others in the greater TreeHouse community.

• Given that acquisitions fuel our growth, our culture must foster a collaborative ethic ofexcellence across all functions, egalitarianism across all legacy predecessors and

organizational unity across diverse businesses.16


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THS Portfolio Strategy: 2005

Categories

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

Growth

• Product Based

• Baby Boomers

• Supermarkets

• NBE

• Lowest Cost

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0%

5%

10%

15%

20%

25%

30%

35%

0

5,000

10,000

15,000

20,000

25,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Private Label Share of New Products in US Food & Drink

Number of New Products Private Label % of New Products

Growth Thru Innovation

TreeHouse Era

Source: Mintel GNPD, as of August 2014*2014 Year to date figure annualized

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Customers

P r i v

a t e L a b e l S t r a

t e g y

Collaboration

• Service Based

• Frugal Consumers

• Alternate Channels

• Tiered Offerings

• Cost To Serve

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Growth Thru Customer Alignment

=$1Bn in PL Sales

-3%

-2%

-1%

0%

1%

2%

3%

4%

-11% -9% -7% -5% -3% -1% 1% 3% 5% 7% 9% 11%

P e r c e n t

C h a n g e i n A v e r a g e P r i c e v s . Y A

Percent Change in Units vs. YA

Private Label Food & Beverage Trends by Retailer

Source: IRI Market Advantage, Last 52 weeks ending 10/26/2014; “Food & Beverage” refers to the aggregation of the General Food and Beverage Departments

Min Max

Units -10.0% +9.8%

Price -2.5% +3.2%

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Consumers

V a l u e s & L i f e s t y l e

Demographics

• Destination Brand Based

• Millennials

• Store Perimeter

• B4U + Relevance

• Store Brand Premium

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Growth Thru Acquisitions

Source: Euromonitor

Packaged Food &Drinks, 31%

UHT Soup, 66%

Nuts, 124%

0%

20%

40%

60%

80%

100%

120%

140%

2009 2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

P e r c e n t

C h a n g e i n U

. S . D

o l l a r S a

l e s

Category Growth Trends

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The THS Brand: Growth Thru Change

$0

$100

$200

$300

$400

2010 2011 2012 2013 2014Fcst

2015Plan

2016Plan

N e t S a l e s i n M i l l i o n s

Single Serve BeverageGrowth & Plans

Actual Original Plan Revised Plan24


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Salad DressingsMexican & OtherSauces

Jams

Dry Dinners

Aseptic & Other

Soup

Pickles

BeverageEnhancers

Cereals

Healthy Snacks

Beverages

Protenergy

A Decade of Change

60%Value

40%Growth

Pickles

NDC

Other

THS 2005 Portfolio$700M Net Sales

100%Value

THS Portfolio 2014 Pro Forma$3.5Bn Net Sales

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A Decade of Growth

$5Bn+

$500

$1,000 $1,500

$2,000

$2,500

$3,000 $3,500

$4,000

$4,500

$5,000 $5,500

Jun-05 Apr-06 Feb-07 Dec-07 Nov-08 Sep-09 Jul-10 Jun-11 Apr-12 Feb-13 Dec-13 Nov-14

T E V ( $ i n M i l l i o n s )

THS Total Enterprise Value

Note: Total Enterprise Value = Market Capitalization + Interest Bearing Debt + Preferred Stock – Excess CashSource: CapitalIQ and internal data 26


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The Branding of Private Label

Making THS the Home of Customer Brands

• Growth

• Simplification

• Vision-Mission-Values

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Building The TreeHouse BrandThrough Customer Intimacy

Chris Sliva

Executive Vice President, TreeHouse Foods &

President, Bay Valley Foods

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Value Disciplines

Value Disciplines

Customer Intimacy

Product Leadership Operational Excellence

30

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BVF Business ModelFocuses on Customer Intimacy

Customer Intimacy EfficientDistribution

Marketing

Insights, ProductDevelopment,Category

Management

Quality, Food Safety,Service

Broadening ProductPortfolio

GrowingCentralized and

Customer-Focused

Capabilities

StrategicCustomers

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Strategic CustomersGarner the Most BVF Resources

TacticalCollaboration

StrategicPartner

CommoditySupplier

StrategicSupplier

GROWTH

LOW HIGH

L O W

H I G H

V O L U M E

CustomizedServices

Product Differentiation

Operational Efficiency

CUSTOMERS

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SKU Productivity isDeclining in the Food Industry

100102.4

96.2

91.1

87.586.4

75

80

85

90

95

100

105

2009 2010 2011 2012 2013 2014

V e l o c i t y / S K

U

(

I n d e x v s B a s e l i n e )

TUS–

Multi-Outlet General Food and Beverage, Source: IRI

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Focus on Top Customer Growth and SimplificationAre Yielding Improved SKU Productivity

90

95

100

105

110

115

120

Q213 Q313 Q413 Q114 Q214 Q314

100

107

114113 113

118

Velocity PerSKU Produced

I n d e x v s B a s e l

i n e

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TreeHouse Drives DisproportionatePrivate Label Growth

Source: IRI General Food & Beverage last 52 weeks, ending 10/26/14

4.96%

36.63%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

THS Net Sales Share THS YOY Share of Growth

S h a r e o f P r i v a t e L a b e l S a l e s

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The TreeHouse Brand

Values Enhancing our customers’ brandsthrough focus on their priorities

Simplification Driving product brand andcategory productivity

Growth Delivering 7x fair share growthrates in private label

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Following The Private LabelConsumer

Rachel Bishop

Senior Vice President, Chief Strategy Officer

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Slow Recovery in Consumer Sector

-4%

-2%

0%

2%

4%

6%

Q 1 ' 0 0

Q 3 ' 0 0

Q 1 ' 0 1

Q 3 ' 0 1

Q 1 ' 0 2

Q 3 ' 0 2

Q 1 ' 0 3

Q 3 ' 0 3

Q 1 ' 0 4

Q 3 ' 0 4

Q 1 ' 0 5

Q 3 ' 0 5

Q 1 ' 0 6

Q 3 ' 0 6

Q 1 ' 0 7

Q 3 ' 0 7

Q 1 ' 0 8

Q 3 ' 0 8

Q 1 ' 0 9

Q 3 ' 0 9

Q 1 ' 1 0

Q 3 ' 1 0

Q 1 ' 1 1

Q 3 ' 1 1

Q 1 ' 1 2

Q 3 ' 1 2

Q 1 ' 1 3

Q 3 ' 1 3

Q 1 ' 1 4

Q 3 ' 1 4

Real US Personal Consumption Expenditures

Total Personal Expenditures Expenditures on Food at Home

Source: Bureau of Economic Analysis; Seasonally adjusted39


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Confidence Slowly Returns

Source: US Bureau of Labor Statistics; Survey Research Center: University of Michigan; Index March 1996 = 100

40

50

60

70

80

90

100

110

120

6%

8%

10%

12%

14%

16%

18%

Jan '00 Jan '01 Jan '02 Jan '03 Jan '04 Jan '05 Jan '06 Jan '07 Jan '08 Jan '09 Jan '10 Jan '11 Jan '12 Jan '13 Jan '14

C on s um er S en t i m en t U

n e m p l o y m e n t R a t e s

Unemployment and Consumer Sentiment

Unemployed & Underemployed Consumer Sentiment

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Generational Shift In Progress

Source: IRI, CSIA, Total U.S. – Multi Outlet, last 52 weeks ending 6/15/2014

Millenials

21.9%

Gen X

22.7%Boomers42.5%

Greatest

Generation

12.9%

$710+ Bn

Current Grocery Spend by Generation

Source: U.S. Census Bureau, includes only individuals aged 18 and older

Shifts in U.S. Population by Generation

0%

5%

10%

15%

20%

25%

30%

35%

40%

% o

f U . S . P

o p u l a t i o n ( 1 8 y e a r s o f a g

e + )

Millennials

Gen X

Boomers

Greatest

Generation

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The New Definition of Premium

Premium ≠ Branded

Source: IRI, “Premium Products Primed to Perform”, July 2014; IRI MarketPulse Survey Q2, 2014

15% of consumers report thatthey will increase usage of

premium brands in the next 12months 25%

64%

89%

Higher inPrice

Makes LifeMore

Convenient

QualityIngredients

Consumers Define Premium

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Retailers Respond

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TreeHouse Is Well Positioned

Soup &

Gravy

Dry

Dinners

Dressings Hot Cereal Beverages Snacks

BFY

Premium

NBE

OPP

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http://www.sturmfoods.com/consumer_brands.html


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Practical Innovation

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A Private Label Thanksgiving

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Winning in Single Serve

Harry OverlyChief Customer Officer

Bay Valley Foods

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Sustainable Growth in Single Serve


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Sustainable Growth in Single ServeBeverages

ExistingCustomers

New Customers

TechnologyImplementation

Usage Occasions

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Single Serve Coffee Driving


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Single Serve Coffee DrivingCategory Growth

IRI Market Advantage, Total US MULO, Latest 52 weeks ending Oct 26, 2014 52


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Driving Growth Through Variety

Source: IRI Market Advantage | Single Cup Beverage | Latest 13 Week Pd Ending 09-28-14

16

12 11 11 13

2

1 1 2

41 1

1

11

2

2

Wegmans A B C D

Customer Brand Items Per SegmentCOFFEE CAPPUCCINO HOT COCOA CIDER TEA

1

6

58% 42% 23% 39% 31%

CustomerBrand Share

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Specialty Beverages Continue to Grow

• #2 of ALL Single Serve itemsTop 20

Retailer

• #7 of ALL Single Serve#13 of ALL Grocery

Top OnlineRetailer

• #5 of ALL Single Serve ItemsTop 5

Retailer

• #7 of ALL Single Serve Items• #1 Private Label SS item

Top 5Retailer

• #1 Private Label SS itemTop 5

Retailer

Source: IRI Market Advantage, Single Cup CAPPUCCINOS, Total US - Multi Outlet, Latest 52 Week Pd ending 09-28-14

French Vanilla Cappuccino Delivers+37% Growth!

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TreeHouse Continues to Lead

IRI Market Advantage, Latest 52 w/e 3.30.14 Customers Win with TreeHouse

TreeHouse partnered with key retailers to establish strongest Private Label shares sinceprogram inception

32.0

37.2

6.8

5.0

9.9

Regional Grocer D

Regional Grocer C

Regional Grocer B

Regional Grocer A

US MULO

Private Label Single Cup Coffee: Unit Share

Brand Suppliers

PL Manufacturer

THS Supplied

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Solution…Delivered

Commercialize

Operational Efficiency & Quality Validation

Product & Process Design

Consumer Exploration

Replicate Taggant Technology

TreeHouse Launched the ONLY NBE Technology Solution

ON Schedule! 56


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Innovation Driving Growth

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Flagstone Foods

Paul LapadatChief Executive Officer, Flagstone Foods

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Agenda

• Company History / Vision

• Category Overview

• Innovation

• Retail Partnerships

• Platform for Future Growth

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Flagstone Foods Introduction

Company History

1962 Amport Foods is the #1 private label dried fruit manufacturer and marketer in the U.S. with abroad line-up of healthy snacks and leadership position in perimeter of the store snacking.

1973 Ann’s House of Nuts was established as a family business and is now the #1 private label trail mix

manufacturer and marketer in the world with a broad line up of snack nuts and other wholesomesnacks.

2010 November 2010 Gryphon Investors acquired Ann’s House of Nuts and Amport Foods to create a

$390MM healthy snacks company focused on store brands.

2012 Announced parent company name change to Flagstone Foods in July 2012 in conjunction withrelocating its headquarters to St. Paul, MN while the company realized double-digit growth.

2014 Acquired by TreeHouse Foods on July 29 creating a new platform for growth!

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Flagstone Vision

• Broad range of high quality, “better-for-you” snack products

• Focus on store brands and control brands

• Product innovation leadership

• Value-added category management with insights and analytics

To build a large scale healthy snacks company that will be the preferred

supplier and partner of the retail trade and be distinguished by our:

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Healthy Snacking Is a Growth Sector

• Healthy snacks represents the fastest growing space in all of food, particularly in private label• Flagstone is responsible for the growth of private label outpacing brands in healthy snacks

($ in billions)

$5.5

$5.9

$6.4

$6.9$7.1

$4.0

$5.0

$6.0

$7.0

$8.0

2009 2010 2011 2012 2013

Healthy Snacks Private Label Healthy Snacks

$1.5

$1.6

$1.8

$1.9

$2.1

$1.0

$1.5

$2.0

$2.5

2009 2010 2011 2012 2013

Total Food Industry

$362$381 $390

$396

$200

$300

$400

$500

2010 2011 2012 2013

($ in billions) ($ in billions)

Note: Healthy snacks includes snack nuts, trail mix and dried fruitsSource: Nielsen 63


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Snack Nuts Trail Mix Dried Fruit Total Market

Market Size ($MM) $6,539 $986 $718 $8,243

CAGR (’11 – ‘13) 7% 8% 1% 7%

CAGR (’13 – ‘18) 7% 7% 4% 7%

Branded Share

Private Label Share

Flagstone Core Categories Overview

70%

30%

46%

54%

25%

75% 67%

33%

Flagstone participates in categories with sizable PL presence, with significant runway to gain share

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Organic Growth Through Innovation

• Track record of driving organic growth by leading with category innovation:

– Bring consumer packaged goods branded mindset and talent to Private Label

– Leverage shopper insights from variety of sources including custom research

– Rapidly develop & prototype new brands, new products, new packaging and new categories

– Best speed to market from idea to shelf

Shopperand

CustomerInsights

New ItemPrototyping

andFeedback

Customer

InnovationPipelines:

SustainableTop and

Bottom LineGrowth

New Brands New Products New Packaging New Categories

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Innovation Platforms

Unsalted Segment

VeggieSegment

Organic & Better For

You Segments

Nature’s Harvest BrandCreation

Recent Flagstone Product Innovation

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Innovation Platforms

Licensing /Co-Branding Segment

Seasoned Almond Segment

On The Go PackagingForms

Premium Snack BarSegment

Recent Flagstone Product Innovation

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Partnering with Top Retailers

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Flagstone Is a Platform for Growth

1) Flagstone competes in high growth categories Categories continuing to see robust growth in the latest 52 weeks:

Private Label Nuts +10.9%

Private Label Trail Mix +9.3%

Private Label Dried Fruit +4.4%

2) Categories are highly responsive to innovation

Lead with innovation at key retailers and increase share of shelf

Flagstone is organized internally to facilitate innovation and growth

3) Platform Company ready for acquisitions

Infrastructure already in place for add-on acquisitions

Aligned M&A strategy and actively working M&A targets

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Center of Store Growth

Michael AxelrodChief Operating Officer

Bay Valley Foods

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Overall Real Growth in U.S. Grocery is Stagnant

$699 $714$740 $760

$771 $774

245 248 250 250 251 251

2009 2010 2011 2012 2013 52 w/e 4/12/14

B i l l i o

n s

Dollar Sales Unit Volume

Source: Nielsen, Total U.S. All Outlets Combined (plus Convenience), All Departments, All Brands (UPC), % Change, 52 week periods vs. year ago

Total Grocery

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Areas of Growth Exist

¹Nielsen Strategic Planner, Total U.S. – All Outlets Combined (xAOC), 52 weeks ending 12/26/2009 vs. 52 weeks ending 4/12/2014, UPC coded

• Private label has achieved 18.7% growth since 2009 to reach $112 Bn whilebrands grew only 8.3% over the same time period¹.

Private Label

• Over the course of the last 6 years, many customers have struggled, but othershave managed to deliver consistent growth above the consumer price index.

Winning Customers

• While overall growth has been limited, certain categories have been able tosucceed at the expense of others through innovation, often led by new marketentrants.

Category Innovation

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Health & Wellness Value Convenience

3 Keys to Driving Growth

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Pockets of Growth in the Center of the Store

Source: IRI, Market Advantage, Total U.S. – Multi Outlet, volume growth in units, CY2011 vs. CY 2013

Milk &Creamers

CottageCheese &Sour Cream

Butter &Margarine

Rfg Dips &Condi-

ments

Bakery

FreshBread

CheeseEggs Yogurt Rfg Dough &Baked Goods

RfgDesserts Rfg Meats

Rfg Meals

Fresh

Produce

Carbon-ated SoftDrinks

NonCarbon-ated SoftDrinks

Juices

Sports &EnergyDrinks

BottledWater

DrinkMixes

RTDCoffee &

Tea

Pkg’d

Milks &Modifiers

Coffee

Tea

Baby Food

GumCandy

Condi-ments &Sauces

Jams /Jellies /Spreads

Pickles /Olives /Relishes

Dressings&

Toppings

Cookies

Crackers

BakingSupplies

Baking

Mixes

Sugar &Sweete-

ners

DessertSyrups &Toppings

Pudding &Dessert

Mixes

Shorten-ing & Oil

Cereals

BreakfastFoods

SnackNuts &Seeds

Snacks

DriedFruit

Soup &

Gravy

Pasta

EthnicFoods

CannedMeat &Seafood

CannedFruit

CannedVeget-ables

SSDinners &

Mixes

BakedBeans

Spices &Season-

ings

RfgBeverages

Dry Beans& Grains

2011-2013 CAGR

>3.0%

1.0 to 3.0%

-1.0 to 1.0%

-1.0 to -2.0%


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The Soup Opportunity

Opportunity Areas

Private Label Share

Brand Share

Source: IRI MULO latest 52 weeks ending 8/24/14; Internal Analysis

VOLUME 25% 25% 1%

(UNITS)

20%

31% 33%

75% 75% 99% 94% 80%

69% 67%

Cooking CansCTN CTN CANS CARTON

Units (MM) 502 1 37 226 295

Y/Y Growth -4.5% 14% 19% -11.0% 15.7%

Condensed Wet Soup ($1.6B, -4.5%) RTS Soup ($1.9B -1.8%) Broth $0.9B (+4.6%)

6%

Eating Cans Value Cans

-4.5% -1.8%

752 992

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Convenience Broth and RTS Soup


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1995 2000 2005 2010 2015 2020 2025 2030

60%

40%

30%

20%

10%0%

90%

50%

100%

80%70%

RTS Soup

Broth

US Retail Share of Soup Segments for Carton Packaging Format% soup segment share (units)

Source: IRI Market Advantage Unit share data for 2011-2014 (Actual); Projections from 1997-2010 based on Nielsen AOCx historical CAGR rates (Estimated); Projections from 2015-2030based upon Euromonitor growth CAGR rates (Estimated)

Convenience - Broth and RTS Soup

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H l h & W ll PL S


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Health & Wellness – PL Soup

12.3%

15.0%

16.3%15.8%

18.9%19.2%

10%

12%

14%

16%

18%

20%

CY '09 CY '10 CY '11 CY '12 CY '13 LTM '14

Private Label Organic Soup% of Total Organic Soup (Sales $)

Sources: IRI, Market Advantage, Total US – Multi Outlet, Latest 52 weeks as of 9/29/14

(1) Soup categories include all sub-categories as defined by IRI.

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BVF is Well Positioned to Win with Soup


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BVF is Well Positioned to Win with Soup

• A full line of products in all segments

• Strategic customer/channel segmentation/ targetingCategoryManagement

Innovation

OperationalExcellence

• Industry leading innovation, design, R&D, and food safety

• Agility/flexibility to support growth and innovation

• End-to-end supply chain built for lowest cost

Critical Enablers Description

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G i St St di T ll


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2015 Working Assumptions

Dennis RiordanExecutive Vice President and Chief Financial Officer

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2015 W ki A ti


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• Highest sales growth will come from hot beverages, snacks,and new soups and broths.

• Legacy categories will continue to grow modestly, despitechallenging food industry run rates.

• Input cost changes are not expected to be significant intotal, but there will be variability in certain commodities.We will need to address the probability of wider

movements (up or down) as the year progresses.

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2015 W ki A ti


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• Recent acquisitions will have lower than average grossmargins – more than 700 bps lower than Legacy:

Year to Date Gross Margins:

Nine Months ended: 2014 2013

Total Company As Reported 20.9% 20.8%

Total Company As Adjusted 21.7% 22.0%

Legacy Acquired Total Legacy Acquired Total

Net Sales 1,672,146$ 370,442$ 2,042,588$ 1,612,021$ 21,584$ 1,633,605$

Gross Margins 385,942$ 56,585$ 442,527$ 354,820$ 3,862$ 358,682$

Gross Margin % 23.1% 15.3% 21.7% 22.0% 17.9% 22.0%

Nine Months 2014 Nine Months 2013

Above financial data is derived from previously disclosed information in filings, earnings releases and calls

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2015 W ki A ti


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• We expect to apply the synergistic and operationalexpertise of our legacy business to the new acquisitions,although due to the higher raw material content, the impactmay be less in the better-for-you snacks business.

• We still anticipate 100 bps of margin improvement fromour on-going business next year, driven by simplificationprograms and reducing low volume / low margin SKU’s

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• 2015 SG&A spending:– Possible increase in IT spending to address the conversion of recent

acquisitions and continued roll out to legacy locations

– Expect SG&A leverage to very modestly increase as a percent of net sales in2015

– Stock Compensation expense will increase by about 1/3 due to earningsgrowth of the company and additional participants from acquisitions

• Interest rates will rise only slightly in 2015 due to anticipated

high-yield issuance and general market conditions• Tax rates should be a the high end of the historic average of

about 34% - 35% due to the increased mix of US income

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• Shares– Share count grows each year in the last week of June due to normal

annual grants

– There is very little effect on average shares outstanding until Q3 and Q4

– With the additions of new participants from acquisitions, the new

grants will likely grow by 1/3 compared to historic growth

• Insider Selling– We are approaching the 10 year anniversary of the Company, so

insiders have to sell options due to their 10 life

– Original grants were larger than normal annual grants, so expect moresales over the next six months

– Management still retains a substantial stake in the Company

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Growing Strong Standing Tall


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ths treehouse foods 2014 investor meeting

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