the middleby corporation n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Middleby Corporation PowerPoint Presentation
Download Presentation
The Middleby Corporation

Loading in 2 Seconds...

play fullscreen
1 / 24

The Middleby Corporation - PowerPoint PPT Presentation


  • 147 Views
  • Uploaded on

The Middleby Corporation. Baird Industrial Conference. November 6, 2007. Forward Looking Statements.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Middleby Corporation' - tammy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the middleby corporation
The Middleby Corporation

Baird Industrial Conference

November 6, 2007

forward looking statements
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.

middleby corporation executive summary
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 thecommercial 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
    • 9 US Facilities
    • 1 European Facility
    • 2 Asian Facilities
key company highlights
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
slide5

Record Sales and Earnings Growth

($ in millions)

Middleby Financial Performance

Sales Growth through Product Innovation and

Acquisition of Industry Leading Brands

strong relationships with premier customers
Strong Relationships with Premier Customers
  • Blue-chip, customer base
  • Long standing relationships
  • Limited customer concentration
  • Large installed base
  • Serve all food segments
revenue breakdown
Revenue Breakdown

Commercial Foodservice and Food Processing

Expanding Business Segments

commercial foodservice market leader
Commercial Foodservice Market Leader

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

U.S. Hot-side Foodservice Equipment Market by Product (1)

  • ___________________________
  • Source: North American Association of Food Equipment Manufacturers and management estimates.
slide9

Market Leading Brands – Foodservice

Brand

Product

U.S. Market Position

Representative Customers

We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality

slide10

Market Leading Brands - Foodservice (con’t)

Brand

Product

U.S. Market Position

Representative Customers

We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality

middleby brand products
Middleby Brand Products

We offer a comprehensive line of innovative foodservice equipment

Conveyor Oven

Combi Oven

Convection Oven

Fryer

  • Automated oven with energy management system
  • Combination steam and convection in one cavity
  • No-turn bake capabilities
  • Highest efficiency burner

Range

Infrared Broiler

Steamer

Baking Oven

  • 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
food processing industry
Food Processing Industry

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

U.S. Hot-side Foodservice Equipment Market by Product (1)

  • ___________________________
  • Source: Management estimates.

4

slide13

Market Leading Brands – Food Processing

Brand

Product

U.S. Market Position

Representative Customers

We succeed due to strong brands, product innovation, service and support and our continuous commitment to quality

middleby growth drivers
Middleby Growth Drivers
  • Favorable Industry Dynamics
  • New Product Pipeline
  • Acquisitions
  • International Expansion
favorable industry dynamics
Favorable Industry Dynamics

Many factors supporting growing demand for foodservice equipment

Favorable Demographics

New Restaurant / Store Openings

Menu Changes

Replacement of Existing Equipment

Expansion of International Markets

Rising Foodservice Operator Costs

new products driving growth
New Products Driving Growth

We are committed to meeting changing customer needs

Customer Demand

Recent Innovations

Our Success

We Introduce More than 10 Innovative New Products Each Year

new product pipeline foodservice
Mini WOW! Oven

Rethermalizer

Solstice Supreme Fryer

Redesigned Combi-Ovens

500 Series Range

Tanduri Oven

Revolving Tapinyaki Griddle

New Product Pipeline - Foodservice

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

new product pipeline food processing
Cyclone Belt Oven

Flash Pasteurization

Mid-Size J-Con Oven

Wireless Controls

New Product Pipeline – Food Processing

2007 Introductions

2008 Introductions

  • Conveyor Fryer
  • Co-Extrusion
  • Forming Equipment
  • Intellijet Water Cutter

New Products Typically Carry Profit Margins >5% Higher than existing Products

acquistion strategy
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

middleby worldwide executive summary
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
global reach

Manufacturing facility, sales office and test kitchen

Sales office with test kitchen

Sales office only

Global Reach

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

  • 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

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

Key Advantages

2007 2nd quarter year to date review
2007 2nd Quarter Year to Date Review

Results

Commentary

(Amounts in millions, except per share data)

  • Net Sales increased 8.6% year to date
    • 3.3% organic growth
      • 3% Impact of Work Stoppage ($5.8m)
    • 5.4% acquisition growth
  • Gross margins impacted by:
    • Integration of Alkar/Rapidpak acquisition
    • Increased steel and other material costs
  • Operating costs impacted by:
    • Acquisitions
    • Higher commissions
    • Reduced Debt/Rising interest rates
financial themes
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
key investment highlights
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