John B. Sanfilippo & SON 17th Annual Midwest IDEAS Conference

Thank you, John. Good afternoon, everybody. My name is Mike Finn, and here is our fiscal 2026 presentation. These numbers are actually pretty fresh. We are at our June year-end, so about two weeks ago. The clicker doesn't work. All right. Before I begin, just want to let you know, today's presentation will include forward-looking statements based on our current expectations, assumptions, and beliefs. These statements are not guarantees of future results. With that, let's begin. Who are we? John B. Sanfilippo & Son is a leading processor, marketer, and distributor of nuts and snack products in North America. We serve many of the nation's largest private label customers while also marketing a portfolio of recognized branded products. Our offerings include snack and protein bars, recipe nuts, snack nuts, trail mixes, and confection products.

Today, we are one of the largest nut processors in the world, generating approximately $1.2 billion in annual net sales. As John mentioned, for more than 100 years, JBSS has built and strengthened its market leadership through innovation, disciplined investment, and strategic growth. We remain a fourth-generation, family-managed company with long-term perspective and commitment to creating sustainable shareholder value. Our strategy of targeted capital investments and complementary acquisitions has created a vertically integrated platform across pecan, walnut, and peanut manufacturing. Where are we? We are a U.S.-based company. We operate five high-capacity, state-of-the-art manufacturing facilities strategically located across the United States. Our shelling operations are positioned in prime nut-growing regions, providing access to raw materials. We also operate a dedicated peanut facility and a separate peanut-free facility. What differentiates us? Our combination of capabilities, expertise, and customer partnership.

We proactively bring innovative ideas to private label customers, develop their customized formulas, and continue investing in new capabilities. Our technical expertise and deep industry knowledge enable us to anticipate trends and adapt to evolving consumer needs. Portfolio diversification has been deliberate strategy. We process and market a full range of nut varieties. Snack nuts and trail mixes now represent approximately 25% of our sales, a category we intentionally built over time. We plan to apply that same approach to snack and protein bars. Product diversification reduces our commodity exposure and helps support our long-term growth. Regarding our financial performance, over the last 10 years, all major performance indicators have shown growth. Volume is up, diluted EPS is up. Both gross profit and operating income margins have improved. Our stock price delivered a CAGR of approximately 2.5%, reflecting consistent value creation despite challenging consumer cost environment.

Regarding EBITDA, fiscal EBITDA has exceeded $100 million for the last five years, which demonstrates our earnings consistency. EBITDA per pound has also turned positively after being impacted by product mix changes beginning in fiscal 2024. Shareholder returns and capital investments. Nine years ago, we established a regular dividend program and have increased it annually. We also supplemented those payments with special dividends, averaging nearly $33 per share annually. At the same time, we invested over $150 million in CapEx over the last two years to support future growth. We expect the capital investment to decrease to more historical amounts going forward once our high-speed bar lines are completed in this current fiscal year. Despite substantial investments, our balance sheet remains strong. Working capital has increased from higher nut procurement costs and inventory added through our 2024 acquisition.

Leverage ratios reflect investments in bar capacity expansion, while return on equity has increased approximately 35%. Demonstrating our ability to generate strong shareholder returns while investing for future growth. Regarding our fiscal 2026 results. Over time, our business has become increasingly concentrated in the consumer channel, a deliberate strategic decision aimed at enhancing profitability and reducing risk. Within our private label portfolio, nut and trail products represent the majority of sales, while Fisher remains the primary driver of our branded business. This balanced mix allows us to leverage both the scale of private label and the strength of our branded portfolio. The consumer channel is our largest sales distribution channel. It delivered a 6% sales increase in fiscal 2026. Growth was primarily driven by selling price alignment, favorable product mix, and contributions from new customer wins.

These results demonstrate our ability to execute effectively in a dynamic marketplace while continuing to meet evolving consumer demand. Further diversification within this channel remains a key growth objective. We see significant opportunities to expand our bar business with existing customers, particularly in attractive categories such as kids' snacks and protein-focused products. At the same time, we are focused on growing our customer base and increasing production volumes. These initiatives are designed to drive sustainable long-term growth and improve our capacity utilization. The commercial ingredients channel increased sales 10%. This was driven by growth in both new and existing customers, as well as implementing strategic pricing initiatives. Our contract manufacturing channel generated 4% sales growth during fiscal 2026, primarily as a result of new customer additions. This channel continues to provide opportunities to leverage our manufacturing expertise, scale, and operational capabilities while broadening our customer relationships.

I will now turn it over to Jeffrey to talk about the fiscal 2026 plan.

Jeffrey. Thank you, Mike, and thank you for joining us.

We appreciate your interest in the company. For those of you that have been in the stock for a while, those of you that don't know about us, what I would talk about today is we are transforming our business. For 100 years, we have been in the nut, trail mix, peanut butter business. We are experts at procurement. 80% of our cost of goods is in the raw material. We built out a strong foundation to be aware of what's happening with raw materials, with nuts, with commodities. We have that expertise with our growers. We do not own farms, but we have great relationships with our growers around the world.

We also have an infrastructure that we've spent 100 years on building out to be the best manufacturer of private label and branded snack nuts in the country, and that's given us a strong platform. Now we're transforming the business. I'll talk about what's happening in Nut & Trail today and where we saw an opportunity over six years ago to diversify our portfolio. Three key pillars is focus on private label bar growth. We saw the bar category growing much faster than Nut & Trail. We thought we are experts at manufacturing packaged goods in our category. Bars were not that dissimilar. They use a lot of the same ingredients that we use in our snack mixes that we produce. Technology is similar from a roasting, processing, baking to bar category. We did that. We made an investment a couple years ago infrastructure in our Elgin headquarters, which is about an hour northwest of here.

As Mike mentioned, I think we'll have an open house for investors in November, December when all this new capacity comes online. Biggest piece of our business, though, today is still trail mixes and nuts. We want to make sure that we consolidate that industry. We want to make sure that we are the best supplier. We're the go-to vendor for companies like Walmart, who is our largest customer. Target is number 2. We're working with Kroger, Whole Foods Market, Aldi, Trader Joe's. Any key retailer that's growing, we want to be the go-to partner for the private label nut and trail mix business. It's been a relatively flat category over the last 18 months to 2 years, partially because inflation has occurred.

We know about fuel surcharges, commodities, tariffs, higher labor rates, higher shipping. All of that has been passed on and taken pretty significant price increases in the nut and trail category. We have seen some price elasticity as a result of that. Also, selective investments in our own brands. 80% of our total business, 20% is still our branded business. We believe it is an important piece of our business, higher margin. We can go to market faster as we see trends occur. For example, protein. Everyone talks about protein today. We are quick to launch a go protein peanut snack, and we are working on an almond snack that will launch for brands is much quicker in some cases. We could take advantage of trends that we see. We will selectively invest in the brands that are part of our portfolio.