Business Review & Profit Sharing

Business Review&

Profit Sharing

Business Review&

Profit Sharing

ManufacturingManufacturing

Cheese Curl Production Output

2,200 lbs. per hourCheese Curl Production Output

2,200 lbs. per hour


Baked CrispsBaked Crisps

Philadelphia MarketPhiladelphia Market

20%20%


Percent Within Specifications

98.9%Percent Within Specifications

98.9%


Total Production Tonnage

61 Million Lbs.Total Production Tonnage

61 Million Lbs.


Tonnage (New Plant)

+ 36%Tonnage (New Plant)

+ 36%


Manufacturing Efficiency

110 lbs. per man-hourManufacturing Efficiency

110 lbs. per man-hour


OSHA Recordable Incidents

- 16%OSHA Recordable Incidents

- 16%


Lost Time Accidents

5Lost Time Accidents

5


New ProductsIn DevelopmentNew Products

In Development




Sales & MarketingSales & Marketing


Total SalesTotal Sales

+ 12.1%+ 12.1%


DSD SalesDSD Sales

+ 6.6%+ 6.6%


Non-Franchise SalesNon-Franchise Sales

+ 5.5%+ 5.5%


National Retail SalesNational Retail Sales

+ 59.2%+ 59.2%


Distributor, Vending &Distributor, Vending &International SalesInternational Sales

+ 16.1%+ 16.1%


New DSD Retail CustomersNew DSD Retail Customers

3,5203,520


New DistributorsNew Distributors

6161


Drug Store SalesDrug Store Sales

+ 12.9%+ 12.9%


Kettle Chip SalesKettle Chip Sales

+ 8.1%+ 8.1%


Baked Crisp SalesBaked Crisp Sales

3.6 Million3.6 Million



Philadelphia MarketPhiladelphia Market

20%20%



Total Market ShareTotal Market Share

8.4%8.4%


DSDDSDMIX Items SalesMIX Items Sales

+ 33.8%+ 33.8%


SupermarketSupermarketMIX Items SalesMIX Items Sales

+ 26%+ 26%


Total DSD GrowthTotal DSD Growth

+ 6.6%+ 6.6%


PreventablePreventableVehicle AccidentsVehicle Accidents

- 39.7%- 39.7%


OSHAOSHARecordable IncidentsRecordable Incidents

- 15.2%- 15.2%


Fiscal 2010 GoalsFiscal 2010 Goals


IncreaseIncreaseKettle Chip SalesKettle Chip Sales

10%10%



IncreaseIncreaseNon-FranchiseNon-Franchise

10%10%



IncreaseIncreaseMIX Item SalesMIX Item Sales

30%30%



Continue to ReduceContinue to ReduceAccidents & InjuriesAccidents & Injuries


Human ResourcesHuman Resources


Medical Expenses

$7,200,000

Medical Expenses

$7,200,000


Gold Silver BronzeGold Silver Bronze


PreventableVehicle Accidents

- 39%

PreventableVehicle Accidents

- 39%


OSHARecordable Incidents

- 16%

OSHARecordable Incidents

- 16%


OSHALost-Time Incidents

- 14%

OSHALost-Time Incidents

- 14%


Lost Working Days

- 42%

Lost Working Days

- 42%


•Herr Foods produces high quality products

•Herr Foods provides the best possible customer service

•Herr Foods makes customer satisfaction a very high priority

•Herr Foods produces high quality products

•Herr Foods provides the best possible customer service

•Herr Foods makes customer satisfaction a very high priority

Employee SurveyEmployee Survey

FinanceFinance

FinanceFinance

FY-09 Operating IncomeFY-09 Operating Income

$5 Million$5 Million

FinanceFinance

FY-09 Gross SalesFY-09 Gross Sales

$282 Million$282 Million

FinanceFinance

FY-09 Gross SalesFY-09 Gross Sales

+ 12.1%+ 12.1%

FinanceFinance

Cheese Curls SalesCheese Curls Sales

$15,361,000$15,361,000

FinanceFinance

Snack Fries SalesSnack Fries Sales

$3,921,000$3,921,000

FinanceFinance

Baked Crisps SalesBaked Crisps Sales

$3,638,000$3,638,000

FinanceFinance

2010 Budget Goals2010 Budget Goals

FinanceFinance


Gross Sales

$315,671,000

Gross Sales

$315,671,000

FinanceFinance


SelectivePrice Increases

SelectivePrice Increases

FinanceFinance


Significant Growth inNon DSD Business

Significant Growth inNon DSD Business

FinanceFinance


Capital Spending

$7,000,000

Capital Spending

$7,000,000

FinanceFinance

2010 Budget Goals2010 Budget GoalsCapital Spending

Vehicles

$2,700,000

Capital Spending

Vehicles

$2,700,000

FinanceFinance


I.T. Equipment

$1,000,000

Capital Spending

I.T. Equipment

$1,000,000

FinanceFinance


Plant Equipment

$3,300,000

Capital Spending

Plant Equipment

$3,300,000

ReviewReview

ReviewReview

FY 2010 GoalsFY 2010 Goals

GrowNet Sales

+ 14%

GrowNet Sales

+ 14%

ReviewReview


GrowNet Sales

+ 14%

GrowNet Sales

+ 14%

ReviewReview

FY 2010 GoalsFY 2010 GoalsKettle Sales

Increase

+ 10%

Kettle SalesIncrease

+ 10%

ReviewReview

FY 2010 GoalsFY 2010 GoalsNon-franchiseSales Increase

+ 10%

Non-franchiseSales Increase

+ 10%

ReviewReview

FY 2010 GoalsFY 2010 GoalsNew Products

Sales

$8,000,000

New ProductsSales

$8,000,000

ReviewReview

FY 2010 GoalsFY 2010 GoalsNon-DSD

Sales Increase

+ 33%

Non-DSDSales Increase

+ 33%

ReviewReview


Safety

People

Quality

Efficiency

Safety

People

Quality

Efficiency

Profit SharingProfit Sharing


Profit Sharing Trust

Founded in 1963

$10,000

Profit Sharing Trust

Founded in 1963

$10,000


Total Assets Exceed

$42 MILLION

Total Assets Exceed

$42 MILLION


Trustees:Trustees:•Administer policies of

the trust•Select fund managers

•Administer policies of the trust

•Select fund managers


Herr Foods Inc.Herr Foods Inc.Herr Foods Inc.Herr Foods Inc.

Profit Sharing TrustProfit Sharing TrustProfit Sharing TrustProfit Sharing Trust

IndividualIndividualEmployee AccountsEmployee Accounts

IndividualIndividualEmployee AccountsEmployee Accounts

The amount placed in youraccount for 08-09 wasapproximately 2.6% of yourannual income

The amount placed in youraccount for 08-09 wasapproximately 2.6% of yourannual income

Profit SharingProfit SharingWhen you receive your certificate...When you receive your certificate...

Date HiredDate Hired Date ReceivedDate Received ShareShare

On or before 9/01/06 2008 Full

Between 9/02/06 and 3/01/07

2008 Half

Between 3/02/07 and 9/01/07 2009 Full

Between 9/02/07 and 3/01/08

2009 Half

Between 3/02/08 and 9/01/08

2010Full

Between 9/02/08 and 3/01/09

2010 Half

Profit SharingProfit SharingStatement of BenefitsStatement of Benefits

Account balance as of 8/03/08 $1,000.00

Contributions to investment account

$1,000.00

Your share of earnings / (losses) $100.00

Your share of forfeitures $100.00

Account balance as of 8/31/09 $2,200.00

Vested percent in your account 20%

Vested value in your account $440.00

Profit SharingProfit SharingVesting ScheduleVesting Schedule

Years of Service Vesting

2 20%

3 40%

4 60%

5 80%

6 100%

Profit SharingProfit Sharing100% vesting also at:100% vesting also at:

• Age 60• Permanent Disability• Death

• Age 60• Permanent Disability• Death

(Regardless of years of service)(Regardless of years of service)


ForfeituresForfeitures

The amount of an account whichisn’t vested at termination is added

to the accounts of active participants

The amount of an account whichisn’t vested at termination is added

to the accounts of active participants


You Receive Your Money Upon:You Receive Your Money Upon:

•Termination•Retirement•Permanent Disability•Death (Estate)

•Termination•Retirement•Permanent Disability•Death (Estate)


You May Receive Your Money As:You May Receive Your Money As:

• Lump Sum• Quarterly Amounts• Annuity

• Lump Sum• Quarterly Amounts• Annuity


Your money grows TAX FREE as long as you are a participant

in the fund.

Your money grows TAX FREE as long as you are a participant

in the fund.


Tax payment is required upon withdrawal unless

the account is rolled over

Tax payment is required upon withdrawal unless

the account is rolled over


Contribution toProfit Sharing Trust

$1,400,000

Contribution toProfit Sharing Trust

$1,400,000


Total Contribution

$28,716,600

Total Contribution

$28,716,600


Purchased in stock $477,000

Current Value $9,186,000

Annualized Growth + 13.6%

Profit SharingProfit SharingFund composition & rate of returnFund composition & rate of return


Herr’s StockHerr’s Stock

ReturnReturn 20.8%20.8%

FundFund 21.8%21.8%

Value Value (000)(000)

9,1869,186


Stocks / Mutual FundsStocks / Mutual Funds

ReturnReturn -18.1%-18.1%

FundFund 46.6%46.6%


19,58119,581


BondsBonds

ReturnReturn 2.1%2.1%

FundFund 14.3%14.3%


6,0426,042


Other AssetsOther Assets

ReturnReturn -12.1%-12.1%

FundFund 13.7%13.7%


5,7795,779


Cash & ReceivablesCash & Receivables

ReturnReturn 0%0%

FundFund 3.6%3.6%


1,5431,543

Profit SharingProfit SharingFund composition & rate of returnFund composition & rate of return

Total Rate of ReturnTotal Rate of Return

- 7.5%- 7.5%


Since Inception 8.1%Last 15 Years 7.2%

Investment Return HistoryInvestment Return History

Individual Account Individual Account $ 1,000 Contribution$ 1,000 Contribution

Profit SharingProfit SharingAccounts 08-09

$5,000 and under 475

Between $5,001 and $10,000 172

Between $10,001 and $25,000 266

Between $25,001 and $50,000 179

Between $50,001 and $100,000

123

Between $100,001 and $200,000

67

$200,001 and over 32

Total 1,314

Documents

Business Review & Profit Sharing