Oil-Dri Corporation of America Midwest IDEAS Conference€¦ · $ Share Today $ Share Opportunity...

Oil-Dri Corporation of America

Midwest IDEAS ConferenceAugust 29, 2019

Cautionary Statements Regarding

Forward-Looking Information

Except for the historical information contained herein, certain of the matters discussed in this communication constitute

“forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934,

both as amended by the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “outlook,” “forecast,”

“would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “seek,” “estimate,” “anticipate,” “believe,” “may,” “will,”

“target,” “assume” and words and terms of similar substance used in connection with any discussion of future plans,

actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to,

statements regarding anticipated future financial and operating performance and results, and estimates for growth

overall and in particular business lines. These statements are based on the current expectations of management of Oil-

Dri Corporation of America (“the Company”). There are a number of risks and uncertainties that could cause actual

results to differ materially from the forward-looking statements included in this presentation, and we encourage you

especially to review the ones that were identified in Item 1A (Risk Factors) of the Company’s most recent Annual

Report on Form 10-K and other reports filed with the Securities and Exchange Commission. Other unknown or

unpredictable factors could also have material adverse effects on future results, performance or achievements of the

Company. You are cautioned not to place undue reliance on forward-looking statements in this presentation. Except to

the extent required by law, the Company does not have any intention or obligation to update publicly any forward-

looking statements contained in this presentation, whether as a result of new information, future event, changes in

assumptions, or otherwise.

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Lightweight Cat Litter Innovation

Daniel S. JaffeePresident & Chief Executive Officer

4

Coast-to-Coast Mineral Experts for 78 Years

Chicago HQ + Innovation

Taft

Ripley

Ochlocknee

• Mined in CA, MS, IL, and GA

• Oil-Dri’s locations in each region

Lightweight Clay(Calcium Bentonite, Attapulgite,

Diatomaceous Shale)

35lbs/ft3

• Mined in SD and WY

Heavyweight Clay(Sodium Bentonite)

70lbs/ft3

Blue Mountain

Mounds

5DIG Insights, Quantitative Consumer Research. Aug 2018, n=500

Lightweight is the Future of Cat Litter

15%

88%73%

12% 12%

$ Share Today $ Share Opportunity

Lightweight Loyals Heavyweight Non-Loyals Heavyweight Loyals

• Category Lightweight Sales +8%

• Oil-Dri Lightweight Sales +15%

• Oil-Dri Share of Lightweight: 23%

Oil-Dri is well-positioned to capture this growth!

$1.7 Billion Opportunity

Based in part on data reported by Nielsen through its Answers on Demand Service for the Cat Litter Category for the 24-week period ending 7/24/19 for the total market. Copyright © 2019 Nielsen.

Performance

6

Oil-Dri Solves the Lightweight Value Disconnect

Concentrated Laundry Detergent

Competitive Lightweight Litter

Oil-Dri’s Lightweight Litter

Price/Use

Parity

Parity

Sub-Par

+50% Premium

Laundry

Detergent

Competitor

Litter

$8.88

$6.95

$7.37

$6.93

RETAILER A

$8.15

$7.01

$6.92 $6.93

RETAILER B

$8.49

$6.96$7.87

$6.95

RETAILER C

Based in part on data reported by Nielsen through its Scantrack Service for the Cat Litter Category for the Q2 2017 and Q2 2019 periods (ending 7/1/17

and 6/29/19 respectively) for the Total US Food market. 10lb Private Label LW and 20lb Private Label HW products analyzed. Copyright © 2019 Nielsen.

7

Line Pricing Lightweight Works

PL LW Price

PL HW Price

PL LW Velocities (U/S/W)

1.4

3.2

Q2 2017 Q2 2019

2.1

4.8

Q2 2017 Q2 2019

2.2

5.0

Q2 2017 Q2 2019

+129% +129% +127%

8

Lightweight Benefits Consumers AND the Earth

More Truck Capacity, Less CO2

Unloading/Stocking DC

Delivering to Stores

Transporting/ Shipping to Consumer

Pouring and Disposing

9

NBC CLEAR THE SHELTERS 2019

10

THE ELLEN DEGENERES SHOW – CAT WEEK SPONSORSHIP

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Business to Business Products GroupGrowing Through Innovation

Mike McPhersonGroup Vice President, B2B

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Integrators

Oil-Dri’s Presence in the Agricultural Marketplace

Seeds

(Coatings)

Crop Protection Chemicals

(Carriers)

Fertilizers

(Carriers / Nutrients)

Biological Control Products

(Carriers)

Grain

(Corn, Soybean, Canola)

Processing Grain Sales

Ethanol FoodBiodieselFeed Mills

Meal

Cooperatives

DDGS

CROP &

HORTICULTURE

FLUIDS

PURIFICATION

ANIMAL

HEALTH

Oil

13

Agriculture Megatrends

Growing World Population

Rising Meat Consumption

Natural Foods

Distrust of Chemicals

Investing in New Research Capabilities to

Capitalize on Trends

14

Life

Sciences

Cat Litter

Intestinal Health

Additives

Microbial

Agricultural

Carriers

Phase I Life Sciences Lab - 2018

15

Phase II Life Sciences Lab - 2019

16

For 30 years Oil-Dri has been the leading supplier of

mineral carriers for agricultural chemicals.

Plant Agriculture Innovation

18

• Oil-Dri is the market leader for mineral carriers used to deliver

synthetic chemicals for crop and plant protection

• We are developing formulated mineral carriers to deliver

micro-organisms for crop and plant protection.

• Biological crop and plant protection is a $1B GLOBAL MARKET*

and moving from liquids to granules in selected applications

*Crop Protection Chemicals Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024, IMARC Group, Jun 2019

Oil-Dri created Amlan International in 2009 to

expand in the animal health industry.

Oil-Dri is the leading manufacturer of activated calcium

montmorillonite, a mineral that has proven efficacy to

control bacterial related disease in livestock.

Mineral Chemisorption of Salmonella Bacteria, 5µm

First-of-its-kind product to bind disease-causing fungal

and bacterial toxins.

Products to control fungal toxins is a $1B global market*

Animal Agriculture Innovation

1st Generation - 2009

*Feed Mycotoxin Binders & Modifiers Market by Type (Binders and Modifiers), Livestock (Poultry, Swine,

Ruminants, and Aquatic Animals), Source (Inorganic and Organic), Form (Dry and Liquid), and Region -

Global Forecast to 2025, MarketsAndMarkets.com, Apr 2019

Alternatives to antibiotics used to promote growth in livestock production is a $1B+ global market*

Natural Growth Promotion for Poultry

Animal Agriculture Innovation

2nd Generation - 2016

*Animal Growth Promoters & Performance Enhancers Market by Product (Antibiotics, Hormones, Feed

Enzymes, Probiotics & Prebiotics, Organic Acids, Phytogenics) & by Animal (Poultry, Porcine, Livestock,

Equine, Aquaculture) - Global Forecast to 2020, MarketsAndMarkets.com, May 2016

Natural Antimicrobial

Antimicrobials is a $1B+ global market*

Animal Agriculture Innovation

3rd Generation - 2020

*Animal Antibiotics and Antimicrobials Market by Product (Tetracycline, Penicillin, Sulfonamide, Macrolide,

Cephalosporin, Fluoroquinolone), Mode of Delivery (Premixes, Oral Powder, Injection), Animal (Food-

producing & Companion) - Global Forecast to 2021, MarketsAndMarkets.com, Dec 2016

Natural Coccidiostat

Coccidiostats is a $876 million global market*

Animal Agriculture Innovation

4th Generation - 2020

*Medicinal Feed Additives, Vetnosis, 2016

OIL-DRI’S PATHWAY TO GROWTH

FOR AGRICULTURE LIFE SCIENCES

Combining mineral technology with

life sciences to create innovations

that help animals and plants grow.

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Financial Results

Susan KrehChief Financial Officer

Net Sales (millions)

$162

$173

$186 $188

$205$212

$232 $236

$219$227

$241$251

$266$261 $262 $262 $266

$207

$100

$150

$200

$250

$300

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

CAGR 3.2% (FY 02 - FY 18)

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Q3

FY

18

Tons Sold (thousands)

1028 1022 1032990

1014982

1026

967

899869

844821

877836

795767

742

566

300

500

700

900

1100

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

CAGR -2.0% (FY 02 - FY 18)

29

Q3

FY

18

Net Sales Per Ton

$158$169

$180$190

$202$216

$226

$244 $244

$261

$285

$305 $304$313

$330$342

$359 $366

$100

$200

$300

$400

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

CAGR 5.4% (FY 02 - FY 18)

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Gross Profit Per Ton

$30$35

$42 $41$38

$47 $45

$51$55

$58

$70

$81

$68$72

$97 $96 $97

$85

$25

$50

$75

$100

$125

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

CAGR 6.7% (FY 02 - FY 18)

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Paid Dividends Per Share

$0.36 $0.36$0.40

$0.43$0.40*

$0.49$0.53

$0.57$0.61

$0.65$0.69

$0.73$0.77

$0.81$0.85

$0.89$0.93

$0.97

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 FY 19

CAGR 6.0% (FY 02 - FY 19)

32*On June 6, 2006, ODCA Board of Directors announced a 5:4 stock split of all Common and Class B stock. FY02 – FY05 reflect dividends paid prior to the 2006 stock split.

ODC Closing Share Price (As of July 31)

$6.00

$9.56

$13.11$14.42

$15.98$16.68$17.22$15.75

$21.88$20.69

$21.93

$31.86

$29.17

$26.26

$37.45

$41.36

$35.43

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 FY 19

CAGR 11.0% (FY 02 - FY 19)$42.36

33

Earnings Per Share

-$0.16

$0.43

$0.68

$0.88$0.73*

$1.09

$1.25$1.33 $1.30 $1.26

$0.85

$2.07

$1.17

$1.59

$1.87

$1.47

$1.11

$0.74

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

CAGR 6.5% (FY 03 - FY 18)

34*On June 6, 2006, ODCA Board of Directors announced a 5:4 stock split of all Common and Class B stock. FY02 – FY05 share counts have been restated to reflect the stock split.

Outstanding Debt (millions)

$34.3

$31.4

$27.4

$23.3

$35.2

$31.2

$27.1

$21.5

$18.3

$33.3

$29.7

$25.9

$22.4

$18.9

$15.4

$12.2

$9.2

$6.1

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

FY 02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 Q3 FY19

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Contact Informationwww.oildri.com

Investor Relations

Leslie Garber

Manager, Investor Relations

(312) 706-3299

InvestorRelations@oildri.com

Corporate Office

410 N. Michigan Avenue

Suite 400

Chicago, IL 60611

(312) 321-1515