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1 February 19, 2008 ROTH Capital Growth Conference Roth Capital Growth Conference.

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Presentation on theme: "1 February 19, 2008 ROTH Capital Growth Conference Roth Capital Growth Conference."— Presentation transcript:

1 1 February 19, 2008 ROTH Capital Growth Conference Roth Capital Growth Conference

2 2 Forward Looking Statements Statements made in this presentation or otherwise attributable to the company regarding the company's business which are not historical fact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. Such factors include, but are not limited to variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company's products; the availability and cost of raw materials; and other risks detailed herein and from time-to-time in the company's SEC filings.

3 3 Middleby Corporation Executive Summary  The Middleby Corporation is the worldwide leader in the manufacture and distribution of a broad line of Cooking, Warming and Preparation Equipment for the commercial restaurant industry and food processors  Headquartered in United States (Chicago, Illinois)  Publicly traded on US stock exchange (symbol: MIDD)  $500+ million in annual revenue  1,600 employees  12 Worldwide Manufacturing Facilities –11 US Facilities –1 European Facility –2 Asian Facilities

4 4 Key Company Highlights  Market Leader of Foodservice Equipment –#1 or #2 market position in U.S. across most product lines  Established Well-Respected Brands –Premium brands recognized for innovative technology, efficiency and quality  Premier Customer Base –Aligned with leading U.S. and international restaurant chains and food processors  Positioned for Growth –Strong pipeline of new differentiated products –Focus on higher growth segments across diverse end markets  Unique Global Footprint –International sales and service infrastructure provides attractive opportunities in emerging markets  Strong Profitability And Commitment to Operational Excellence –Ongoing success in process improvements  Successful Track Record of Growth through Acquisitions

5 5 Record Sales and Earnings Growth Middleby Financial Performance ($ in millions) Sales Growth through Product Innovation and Acquisition of Industry Leading Brands Record Sales and Earning Growth

6 6 Strong Relationships with Premier Customers  Blue-chip, customer base  Long standing relationships  Limited customer concentration  Large installed base  Serve all food segments

7 7 Revenue Breakdown Commercial Foodservice and Food Processing Expanding Business Segments

8 8 Commercial Foodservice Market Leader ___________________________ 1.Source: North American Association of Food Equipment Manufacturers and management estimates. U.S. Hot-side Foodservice Equipment Market by Product (1) Middleby has leading brands and technology in the the foodservice equipment industry  The commercial cooking equipment market is in excess of $3.0 Billion.  Highly fragmented  Middleby focus on Brands and Technology –Equipment in the restaurant and critical the success of the restaurant. –Equipment specification and purchasing decisions driven by chef / operator –Product pricing driven by differentiated technology

9 9 Conveyor Ovens#1 Papa John’s, Pizza Hut, Domino’s, Costco, Red Lobster, Olive Garden Fryers Rethermalizers #2 #1 KFC, Dunkin’ Donuts, McDonald’s, Taco Bell Convection Ovens Combi-ovens Deck Ovens #1 #2 KFC, Burger King, Cracker Barrel, Cheesecake Factory Ranges Upright Boilers #2 #1 Morton’s, Wendy’s, Bob Evans Charbroilers Griddles #2 Outback Steakhouse, Applebee’s, Culver’s Baking Ovens Proofers #1 Subway, Bob Evans ProductU.S. Market PositionBrandRepresentative Customers We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality Market Leading Brands - Foodservice

10 10 Warming Cabinets Cook and Hold Banquet Carts #1 #2 McDonalds, Dunkin Donuts Infrared Ovens Hearth Bake Conveyors #1 Telepizza Cooking Suites Ranges Custom Cooking #1 #3 #1 Cheesecake Factory, PF Changs Ventless Cooking Warming Equipment Pressure Fryers #1 #3 KFC, McDonalds, Waffle House Combi-ovens#5 Tesco, Morrisons ProductU.S. Market PositionBrand Representative Customers We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality Market Leading Brands - Foodservice (cont)

11 11 Counter line Equipment Panini Grills #1 7-Eleven, QT Express, Taco Bell Toasters #1 Chipotle, Panera Bread, Quizno’s Marine Equipment#1 Carnival Cruise Ships ProductU.S. Market PositionBrand Representative Customers We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality Market Leading Brands - Foodservice (cont)

12 12 Middleby Brand Products Conveyor OvenCombi OvenConvection OvenFryer RangeInfrared BroilerSteamerBaking Oven  Automated oven with energy management system  Combination steam and convection in one cavity  No-turn bake capabilities  Highest efficiency burner  Non-clog burner and water proof controls  Used by the best steakhouses in the world  Boilerless, no-lime steamer  V-air technology cooks bread in less than 15 minutes We offer a comprehensive line of innovative foodservice equipment

13 13 Food Processing Industry ___________________________ 1.Source: Management estimates. 4 U.S. Hot-side Foodservice Equipment Market by Product (1) Middleby has leading brands and technology in the food processing equipment industry  The food processing equipment market is in excess of $1.5 Billion.  Highly Fragmented  Middleby focus on Brands and Technology –Equipment specification and purchasing decisions driven by operators and engineers –Product pricing driven by differentiated technology

14 14 Batch Ovens Continuous Ovens Belt Ovens #1 #2 Sara Lee, Smithfield Food Packaging Equipment #2 Kraft, Hormel Conveyorized Breaders Battering Equipment Forming Slicing #2 #1 #2 Tyson, Pilgrims Pride, Keystone Foods, OSI ProductU.S. Market PositionBrand Representative Customers We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality Market Leading Brands – Food Processing

15 15 Middleby Growth Drivers  Favorable Industry Dynamics  New Product Pipeline  Acquisitions  International Expansion

16 16 Favorable Industry Dynamics Many factors supporting growing demand for foodservice equipment Dual income families continue to eat out Percentage of household income spent on food prepared outside the home is increasing Baby boomer generation approaching retirement Growth in fast casual dining and breakfast Emergence of co-branding process is gaining steam Expansion of new menu items driving purchases of new foodservice equipment On-premise baking more prevalent Growing awareness of nutrition implemented through low carb diets and increased presence of salads with grilled meat and fish Average lifespan of foodservice equipment is ~8 years Large installed base (over 850,000 establishments in US) Replacement represents approximately one-third of the market Trend in eating out gaining momentum Rapid growth in developing nations such as China and India U.S. chain concepts expanding internationally Foodservice operators demanding greater productivity through automation Need for equipment with greater energy cost savings Increased cost of trans-fat free oil New Restaurant / Store Openings Menu Changes Favorable Demographics Replacement of Existing Equipment Expansion of International Markets Rising Foodservice Operator Costs

17 17 Speed  No-turn bake convection oven  High speed conveyer with 25% reduction in cooking time  Hydrovection ovens Energy/Cost Savings  New energy management system technology  High efficiency fryers Automation/Efficiency  Self cleaning ovens  Advanced controls Safety  Auto shut-off pilots in ranges  Waterproof controls Recent Innovations Customer Demand New Products Driving Growth Our Success We are committed to meeting changing customer needs We Introduce More than 10 Innovative New Products Each Year

18 18 New Product Pipeline - Foodservice  Mini WOW! Oven  Rethermalizer  Solstice Supreme Fryer  Redesigned Combi-Ovens  500 Series Range  Tanduri Oven  Revolving Tapinyaki Griddle 2007 Introductions 2008 Introductions  High H Oven  Hydrovection Oven  Rocket Fryer  Ventless Hood  Pressure Fryer  Visual Cooking Combi-Ovens  Samooza Fryer New Products Represent more than 20% of Net Sales

19 19 New Product Pipeline – Food Processing  Cyclone Belt Oven  Flash Pasteurization  Mid-Size J-Con Oven  Wireless Controls 2007 Introductions 2008 Introductions  Conveyor Fryer  Co-Extrusion  Forming Equipment  Intellijet Water Cutter New Products Typically Carry Profit Margins >5% Higher than existing Products

20 20 Acquistion Strategy  Acquire Leading Brands and Technologies Established Market Positions Differentiated Products Higher Profit Margin  Increase Operating Efficiency Eliminated Unprofitable SKU’s Focus on Core Products Streamline Production and Administrative Processes  Realize Synergies Increased Purchasing Leverage Utilization of Middleby Low Cost Production Facilities Leverage Sales and Distribution Network Leverage Existing Chain Relationships Creating the Premier Foodservice Equipment Company

21 21 Middleby Worldwide Executive Summary  Middleby Worldwide is the sales, service and distribution arm supporting the Middleby Brands internationally in over 100 countries. Middleby Worldwide has company owned operations in key markets around the world.  Middleby Owned Sales and Service Offices in Key Markets: –Mexico –Australia –UK –Spain –Sweden –China –India –Korea –Taiwan –Philippines –Mid-east –Russia

22 22 Global Reach  Test kitchens throughout the world allow Middleby to educate customers of the benefits of its equipment through hands-on experience and training  Worldwide service is critical and highly valued by U.S. chains expanding into international markets  Worldwide sales infrastructure allows direct contact with key decision makers, especially in high-growth markets  Philippines and China manufacturing capabilities provides regional presence in high-growth Asian markets Manufacturing facility, sales office and test kitchenSales office with test kitchenSales office only Key Advantages Mississauga, Ontario, Canada # of Employees: 2 Bilbao, Spain # of Employees: 11 Manchester, UK # of Employees: 20 Delhi, India # of Employees: 5 Seoul, South Korea # of Employees: 11 Shanghai, China # of Employees: 14 Taipei, Taiwan # of Employees: 7 Manila, Philippines # of Employees: - Manufacturing: 95 - Sales & Dist.: 16 Mexico City, Mexico # of Employees: 26

23 23 Financial Themes  Top Line Growth –Positioned in faster growing segments –Continued new product innovation –Acquisition growth  Focus on Operating Margins –Standardization of product platforms –Strategic supply chain initiatives –Integration of recent acquisitions  Strong Balance Sheet –Continued debt reduction –Capacity to pursue strategic acquisitions

24 24 Key Investment Highlights  Market Leader of Foodservice Equipment  Established Well-Respected Brands  Premier Customer Base  Positioned for Growth  Unique Global Footprint  Strong Profitability and Commitment to Operational Excellence  Successful Track Record of Growth through Acquisitions  Experienced and Proven Management Team


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