Del Monte Pacific Ltd

16 Dec 2015

Corporate Presentation

A Global Heritage Brands Company

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This presentation may contain statements regarding the business of Del Monte Pacific Limited and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically identified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘expect’, and ‘project’ and similar expressions as they relate to the Group. Forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Representative examples of these factors include (without limitation) general economic and business conditions, change in business strategy or development plans, weather conditions, crop yields, service providers’ performance, production efficiencies, input costs and availability, competition, shifts in customer demands and preferences, market acceptance of new products, industry trends, and changes in government and environmental regulations. Such factors that may affect the Group’s future financial results are detailed in the Annual Report. The reader is cautioned to not unduly rely on these forward-looking statements. Neither the Group nor its advisers and representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Del Monte Pacific.

Disclaimer

I. Overview, Brands, History

II. Del Monte Foods Acquisition

III. Strategies

IV. Our Markets

V. Financials, Outlook

VII. Corporate Governance

VIII. Investment Merits

IX. Appendix – Competitive Strengths

X. Appendix - Products

Agenda

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79%

14%5%2%

DMPL FY2015 Sales(by geography)

North AmericaPhilippinesAsia ex-PhilsEurope

• Del Monte Pacific Ltd (“DMPL”) is one of the largest and most well-known marketers of premium quality food products globally

• Integrated business model encompassing plantation, processing facilities and sales and distribution networks

• Exclusive rights to premium heritage brands Del Monte and S&W in certain geographies and product categories

• Dual-listed in Singapore (since August 1999) and the Philippines (since June 2013)

• 67% owned by NutriAsia Pacific Ltd (“NutriAsia”) of the Campos family; 5.5% owned by the Lee Pineapple Group

• Singapore Corporate Awards (mid-cap category) Best Managed Board, Best CFO, Best IR, Best Annual Report

Company Overview

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5.4 5.0 3.7 2.3

Top 5 ASEAN F&B Co. by Sales (CY 2014 USD bn)

2.2

0.5

Note: Del Monte Pacific is based on FY2015

67%

19%

8% 6%

DMPL FY2015 Sales(by product)

Packaged Fruit and VegCulinaryBeverageFresh Fruit and Others

Thai Union Frozen

US$2.2bn US$2.2bn

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Our Key Brands and Brand Ownership

USA

Mexico & Central America

South America

Africa

Europe

Middle East Rest of Asia

Indian subcontinent &

MyanmarPhilippines

Canada

• Del Monte (packaged products): USA, South America, Philippines, Indian subcontinent and Myanmar• S&W (for both packaged and fresh products): Globally except Australia and New Zealand• Contadina and College Inn: Global

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DMPL’s Del Monte brand ownershipDMPL’s S&W, Contadina and College Inn brand ownership

Our Brand Ownership

*DMPL’s Del Monte brand ownership is for packaged products

1892 1896 1914 1923

Heritage Brands :

Nutritious as fresh All natural

Italian heritage Premium quality

Finest quality Healthy

Premium ingredients Taste of home

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United States

South America

Central America & Caribbean

Mexico & Canada

Europe, Middle East &

Africa

Asia (ex Philippines, Indian

subcontinent & Myanmar)

Philippines, Indian subcontinent &

Myanmar

No

rth

an

d

So

uth

A

mer

ica

EM

EA

Asi

a

Del Monte Panamerican

ConAgra

Kikkoman

Fresh Del Monte

Our History

1926Del Monte USA set-up operations in the Philippines

1991KKR sold Del Monte USA and broke up the Del Monte brand

1990KKR bought RJR-Nabisco

1980RJR acquired Del Monte USA

1996Del Monte USA fully divested from its Philippine operations

2011KKR reacquired Del Monte USA

1999• Del Monte Pacific Limited (DMPL) incorporated as parent of Philippine company• Listed on Singapore Exchange

2006NutriAsia Pacific Limited (NPL) acquired 85% of DMPL

2007DMPL bought the S&W brand from Del Monte USA for Asia and EMEA

2013• DMPL dual-listed on the Philippine Stock Exchange• NPL down to 67% stake

2014DMPL acquired Del Monte USA for US$1.675 bn;Re-united with US company

1892Del Monte was born in California

More than 120 years of brand and market leadership

1997TPG acquired Del Monte USA

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Acquisition of Del Monte Foods

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DMFI Acquisition

• Acquisition of Del Monte Foods, Inc (“DMFI”) completed on 18 February 2014

• Purchase price of US$1.675b or 9x EBITDA (subject to working capital adjustments)

• Financed by:

o Debt: US$970m LBO loans (in the US at DMFI level) and US$480m loans (in Philippines at DMPL level)

o Equity: US$150m Rights and US$75m equity

• Current gearing will drop with the proposed preference share offering in CY2016

• DMPL aligned its financial year with that of DMFI to end in April

• Recently released 2Q FY2016 (August-October 2015) turnaround results

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DMPL - DMFI Opportunities

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Opportunities in new products, channels, markets and cost savings

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Strategies

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Business Strategies

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Bringing the Family Back Together

1313

Continue to Leverage on its Strong Brand Equity…

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Source: Company, EuromonitorNotes: 1. Reflects top brands by retail sales generated in the Canned/Preserved Food, Dinner Mixes, Dried Processed Food, Oils and Fats, Sauces, Dressings & Condiments and Spreads categories; excludes bakery, refrigerated and frozen sales2. Excludes revenue related to cheese sales which was >US$3bn in 2012

Del Monte is the third largest center-of-the-store brand in the United States...

...but it has not begun to reach its potential due to historic lack of support

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…and Market Leading Brands

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USA Market Share

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…and Market Leading Brands

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Philippines Market Share

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Invest in Research & Development

Product Innovation

Marketing Campaigns and Packaging

Philippines India

Philippines USA

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Our Markets

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U.S. Market

*Private label sales contributed mainly by Walmart/Sam’s Club; Others include Sager Creek

71%

2%

5%

4%

19%

FY2015 Net Sales by Brand

Private Label/Others*

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Packaged Vegetable

38%Packaged

Fruit42%

Pineapple Juice/

Concentrate1%

Other19%

FY2015 Net Sales by Product

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FY2015 Sales Split (Total Sales US$303m)

Philippines Market

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Packaged Fruit23%

Beverage40%

Culinary (Sauces, Ketchup,

Pasta)37%

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Other Markets

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Asia and Middle East Market Acquired S&W International in November 2007

S&W entered the fresh pineapple business and is now ranked Top 3 in China, South Korea, Japan and Singapore

Offer exceptional quality premium canned fruit and vegetable products

Brand is extendable to other packaging formats, and to fresh produce

Adopt asset light strategy: all products outsourced except packaged pineapple products

For Asia and Middle East, S&W sales of US$50m in FY2015

For India, acquired 40% of FieldFresh in September 2007, with stake subsequently increased to 47% via capital call and voting control equally split between DMPL and Bharti Enterprises (the controlling shareholder of Airtel India)

In Dec 2010, the Indian operations opened a new facility near Bangalore to produce culinary products and fruit drinks

In FY2015, sales amounted to US$61m with US$49m from Del Monte sales in India

S&W Asia and Middle East FY 2015 Sales Split

Fresh Fruit52%

Packaged Fruit32%

Others (corn, beans, etc.)

16%

India FY 2015 Sales Split

Culinary (Ketchup,

Sauces, Mayo)51%

Italian Range (Olive Oil,

Olives, Pasta)22%

Packaged Fruits18%

Beverage9%

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Global – Private Labels/OEM

Private Labels/OEMDMPL’s branded business is more than 80% of sales. The following are the segments of the non-branded business:

Export Markets Customers Products

USA Private labels Packaged vegetable, fruit and tomato

Canada Del Monte brand owners

Packaged fruit and pineapple juice concentrate (PJC)

Europe Private labels Packaged fruit and PJC

Asia Pacific Del Monte Asia/ Kikkoman

Packaged fruit and PJC

Private labels Packaged fruit, PJC and fresh pineapple

Fresh Del Monte* Fresh pineapple

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*DMPL’s Supply Contract with Fresh Del Monte shifted to market prices starting 1 January 2015

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Financials, Outlook,Investment Merits

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Financial Overview

• DMPL aligned its fiscal year with DMFI, ending April instead of December

• FY2015 (May 2014 - April 2015) results were impacted by acquisition related expenses hence the net loss of US$38m

• Without the one-off items, net income would have been US$25m

• FY2015 was a transition period, including reverting to proven strategy for DMFI, growing market share, strengthening partnership with key retailers and exiting from the Transition Service Agreement

Reverting to competitive pricing levels

Reintroducing the well-recognised classic Del Monte label

Reinstating trade support levels

• FY2016 is a return to profitability

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Please refer to the 4QFY15 for more details and to the 2QFY16 results presentation for the latest results

Historical FinancialsRE

VEN

UES

an

d G

ROSS

PR

OFI

TEB

ITD

AN

ET IN

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*DMPL changed its financial-year end to 30 April from 31 December to align with that of its US subsidiary, Del Monte Foods, Inc (DMFI). FY2015 refers to May 2014 to April 2015.**EBITDA and Net income in CY2013-FY2015 were impacted by one-off fees relating to the acquisition of DMFI. The figures in the charts are net of one-off items. If inclusive of one-offs, EBITDA were US$42m and US$96m, and net income was US$16m and net loss of US$38m for CY2013 and FY2015, respectively***Adjusted Gross Profit

**

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***

11.2%15.0% 14.0%

7.2%

In US$m except as stated

6.5% 7.0% 6.9%

1.1%

Historical Dividend Payout

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Source: Bloomberg, DMPL Annual Reports*Net profit in 2013 was impacted by one-off fees primarily relating to the acquisition of the consumer food business of Del Monte Corporation in the US. Net profit would have been US$33.9 million on a recurring basis instead of US$16.1 million without the one-off fees.

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Barring unforeseen circumstances, the Group expects to sustain profits in the remainder of the year and return to profitability in FY2016

USA : •Sustain base business growth•Accelerate foodservice growth and enter new vegetable segments through Sager Creek Asia :•Continue to expand Del Monte brand in the Philippines•S&W to gain more traction as it leverages its distribution expansion in Asia and the Middle East•JV in India to continue generating higher sales and maintain its positive EBITDA•El Niño mitigating measures in the field such as continuous enforcement of land preparation activities and reinforcing root health  

Profit Outlook for FY2016

1. Stronger cash flow expected in 2H FY2016• 1H has seasonally lower sales but high working capital needs due to production season peaking in October• The opposite happens in 2H with seasonally stronger sales due to

Thanksgiving, Christmas and Easter, with lower working capital needs• Expect stronger cash flow and deleveraging in 2H

2. Conversion of a substantial amount of loans from short- to medium-term has significantly improved the Group’s current ratio and liquidity

3. Planned issuance of perpetual preference shares• Intends to issue US$ perpetual preference shares• In the Philippines to be listed on the Philippine Stock Exchange • Launch in CY2016 subject to all regulatory approvals and market conditions• Amounting to US$360m• Will result in a further improvement of leverage ratios

 

Cash Flow and Debt Outlook

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• Received a total of 9 awards between 2010-2015 from the Singapore Corporate Awards:

Best Managed Board

Best Chief Financial Officer

Best Investor Relations

Best Annual Report

• Received the Corporate Governance Award (Runner-Up) from SIAS in October 2014

• Ranked 41st or Top 6% among 639 Singapore-listed companies in the Governance and Transparency Index in August 2015

Corporate Governance

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• Global brand footprint with well-known premium Del Monte and S&W brands

• Long brand heritage of more than 120 years

• Strong local franchise with leading market shares in anchor markets of USA and the Philippines

• Globally competitive integrated pineapple producer

• Experienced, dynamic management

Investment Merits

Solid Fundamentals Growth Drivers

• DMPL-DMFI opportunities (slide 10)

• Strong legs in USA and Philippines with highly cash generative businesses to:

• fund emerging markets growth (eg rest of Asia, Mexico and South America) and

• pockets of growth in USA and the Philippines for new product categories, channels and geography

Valuations

• DMFI returns to profit in FY2016, and serves as a platform for future growth of DMPL

Corporate Governance

• Highly ranked (slide 29)

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Appendix : Competitive Strengths

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Established consumer brands with market leading positions worldwide

Strong supply chain management

Large global business and vertically integrated operations with economies of scale

Diversified portfolio of blue-chip customers

Strong shareholder support and experienced management team with proven track record

1

2

3

4

5

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Established Consumer Brands with Market Leading Positions in the US and Globally

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1

Brands Market Position (Canned Food)

#1 fruit, #1 vegetable, #2 tomato*

#2 tomato*

#2 tomato*, #3 vegetable, #4 fruit

#2 broth, Leader in US Northeast

Product MarketShare

MarketPosition Products

Packaged Core Fruit 30.6% #1

Packaged Core Vegetable

19.6% #1

Packaged Cut Tomato 12.0% #2

•Combined Del Monte, Contadina and S&WSource: Euromonitor and Nielsen for FY2013 ending April

United States

Philippines Others

Products Market Share

Canned pineapple 85% (#1)

Canned mixed fruit 75% (#1)

Canned RTD juices 92% (#1)

Tomato sauce 81% (#1)

Spaghetti sauce 55% (#1)

Source: Nielsen Retail Index, Apr 2015

Region MarketShare

Japan

Within Top 3South Korea

Singapore

China

Source: Management Estimates

Source: Nielsen Scantrack, Total US Grocery+WalMart, 12M ending 2May 2015

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Large Global Business and Vertically Integrated Operations with Economies of Scale

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Cannery capacity of 700,000 tons is ½ hr from plantation; processes fruit within 24 hours of harvest assuring freshness

Ocean port integrated into cannery allows shipping directly to world markets

~23,000 ha. of plantation in the Philippines; planting & harvesting 24 hour operation year round

State-of-the-art fresh cold storage and packing house facility

Plantation Cannery Fresh Packhouse Ocean Port

One of the largest integrated pineapple processors in the world with an 89-year history in the Philippines

Production facilities

3rd Party Distribution

Production Facilities

USA Mexico VenezuelaIndiaPhilippines

132111

Distribution Reach

USAMexicoCentral AmericaVenezuelaS. KoreaJapanHong KongChinaTaiwanMongoliaSingaporeIndonesia

ThailandPhilippinesMalaysiaPacific IslandIsraelUAEIraqKuwaitSaudi ArabiaNepalIndiaPakistan

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Strong Supply Chain Management

Efficient and integrated supply chain and distribution logistics system allows it to focus on the most attractive markets and gives it the flexibility to take advantage of changes in product supply and demand

Maintains long-term relationships with its growers to help ensure a consistent supply of raw fruits and vegetables Conducts ongoing reviews of system and sets annual goals in conjunction with its six-sigma techniques and its productivity to cost

efficiency program Strong US supply chain management provides opportunities for expansion in other of the Group’s products within the US

• DMFI sources vegetables and fruits from growers, farmers and cooperatives that operate mainly in the US

• DMFI processes its products in 16 facilities: 13 across the US, 2 in Mexico and 1 in Venezuela

United States Philippines• In Philippines,

pineapples are sourced from its plantation of ~23,000 ha (approximately one-third the size of Singapore).

Yakima

Modesto

Hanford

Plymouth

Toppenish

Sleepy EyePlover

MarkesanCambria

LathropMendota

Crystal City

McAllen

Rochelle

Fontana

Ft. Worth

Atlanta

York

Fruit Production

Tomato Production

Vegetable Production

Distribution Centre – DMFI operatedDistribution Centre – 3rd party operated

Fruit/Tomato•Close proximity to growers•Off-season production opportunity•Production capability to expand into new tomato-based products

Vegetables•Close proximity to growers•Off-season production opportunity•Production capability to expand into new products (e.g. frozen vegetables)

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North Carolina

Arkansas

28%

9%

8%7%

48%

Diversified Portfolio of Blue Chip Customers

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Strong long-term relationships with major retailers across the US

Philippines Others

US – FY2015 Net Sales Breakdown by Customers

(Walmart subsidiary)

(E-Mart Co Ltd) (Li & Fung Ltd)

Others*

*Others include Supervalu, Ahold, Publix, Target and Safeway which have 2-4% share each

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Strong Shareholder Support & Experienced Management Team with Proven Track Record

DMPL Group CEO DMPL Group COO DMPL Group CCO

Nils Lommerin25 Years IndustryExperience

Dave Withycombe40 YearsIndustryExperience

DMFI OperationsDMFI CEO DMFI CFO

Joselito Campos, Jr.35 Years IndustryExperience

Luis Alejandro35 Years Industry Experience

Ignacio Sison25 YearsIndustryExperience

Dave Meyers35 Years Industry Experience

NutriAsia Pacific Limited (“NutriAsia”), owned by the Campos family, has been the majority shareholder of the Company since 2006 and as of 7 July 2015 maintains 67% ownership. Lee Group owns 5.5% and has been a shareholder since 2003.

Strong Shareholder Support

Experienced Management TeamStrong core management team across the entities with wide-ranging experience in the international markets

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DMPL Group CFO

Parag Sachdeva20 YearsIndustryExperience

Appendix : Products

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USA

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Sales Split FY2015:

42% Packaged Fruit

38% Packaged Veg

1% PJC/Juice

19% Others

Philippines

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Sales Split FY2015:

40% Beverage 37% Culinary (Sauces, Ketchup, Pasta) 23% Packaged Fruit

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India

Sales Split FY2015:

51% Culinary (Ketchups, Sauces, Mayo)

22% Italian Range (Olive Oil, Olives, Pasta)

18% Packaged Fruit and Vegetable

9% Beverage

Asia and Middle East – S&W Products

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Sales Split FY2015:

52% Fresh Pineapple

32% Packaged Fruit

16% Others