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Over a Decade of Changing the
Way the World Eats
A Healthy Way of LifeTM
Barclays Capital
Back -to-Schoo l Conference
September 10, 2009
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Mission Statement Business Strategy
A Healthy Way of LifeTM
of natural and organic products
by anticipating and exceeding consumer expectationsin providing quality, innovation, value and convenience.
We are committed to growing our Company
while continuing to implement environmentallysound business practices and manufacturing processes.
Our Business Strate is to inte rate all of our brands
under one management team and employ a uniform marketing,sales and distribution program. We capitalize on our brand equity
and the distribution achieved through each of our acquired businesseswith strategic introductions of new products that complement
existing lines to enhance revenues and margins.
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Hain Celestials Worldwide Operations
Fiscal Year 2009 Sales
We manufacture, market, distribute, and sell
natural and organic food and personalcare products.
.
Euro e
Our products are sold and marketed tospecialty and natural food distributorsand to supermarkets, supernaturals,natural food stores and other retail
classes of trade includin mass-market
$153.1MM
13.5%
Canada
$55.1MM
stores, drug stores, foodservice channelsand club stores.
We have approximately 2,000 dedicatedemployees worldwide led by a strong
.
professionals.
USA
$927.2MM
.
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Key North American and European Brands
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Market Position
-cereal, cookies and bars; nut butters; oils and baking ingredients; soup; fresh;frozen; snacks and personal care.
Hain Celestials products are generally priced at a 10-15% premium toconventional consumer packaged goods.
Minimal exposure to private label, where top selling categories are dominatedby dairy and produce where Hain Celestial has no presencemilk, eggs,carrots, salad greens, spinach and tomatoes.
75% of the Hain Celestial food products retail for less than $5.00.
Hain Celestial operates in Canada, Belgium, Germany, the United Kingdom andin Asia, through an alliance with Yeo Hiap Seng Limited, with operations fromoutside the United States representing 18% of sales in fiscal year 2009.
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Hain Very Well Positioned in Growth Categories
Top 15 Categories: % Unit Growth (FDM w/WM)
7.9
14.6
Seasonal GM
Canning & Freezing Supp
5.2
5.9
6.1
Dry Mix Prepared Foods
Fresh Meat
Wine
3.7
4.2
4.3
Baking Mixes
Vitamins
Pasta
Back to basicscontinues
2.5
2.9
.
Yogurt
Ref Juices & Drinks
zn ove es
2.1
2.3
.
Condiments, Gravies & Sauces
Cheese
a ng upp es
8
.
Source: Scantrack, a service of The Nielsen Company; (FDM w/ Walmart)52 weeks ending 06/13/09 (versus prior year) minimum $100 million in sales
Hain Celestial Categories
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More At-Home Meal Preferences
% U.S. Households Claiming
37
28
37
24Eat Breakfast at Home Much More Often
Eat Dinner at Home Much More often
2323
20Bring Lunch to Work/Pack Lunch Much
More Often
32
24
32
22Eat Fast Food Much Less Often
Eat Dinner at Restaurant Much Less Often
24
2420Bring Prepared Meal or Home Delivery
Much Less Often
Apr '08
Oct '08
2020
oose a ess xpens ve es auran
Much More Often
pr
9
Source: Homescan, a service of The Nielsen Company PanelViews Economic Impact Survey
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Winning Label Claims, but Slowing Growth for Many
Fiber
Fructose Corn Syrup Free
Omega
Probiotic
Antioxidants
Protein
Natural
Reduced Calorie
GMO Free
Lactose Free
Carb Conscious
No MSG
0 10 20 30 40 50 60
% Change in Units
10
ource: can rac a e ren s, serv ces o e e sen ompany; ex- a mar wee s en ng versus pr or year
Hain Celestial Categories
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Well-Developed Infrastructure
Significant expertise in sourcing natural and organic
Procurementproducts
Ability to source organic products in an environment of
rising demand
Manufacturing
Effective network of owned and leased manufacturingfacilities and third party co-packers
plyChai y o mee eman or na ura an organ c pro uc s
made to rigorous quality specifications and USDAstandards
og st cs anInventory
Management
Su
portfolio
Strong inventory management and control proceduresin lace
MIS
Advanced management information and financialmanagement systems
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y o op m ze repor ng un per ormance
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Responding to Current Economic Environment
Sales
Focus on Core SKUs with Strategic Initiatives on Value Investments andLeveraging Superior Innovation
Positioned for a turnaround in European Operations with new customers andconsolidation of facilities
Hain Pure Protein has been deconsolidated
Moderating Commodity Costs with the Benefit of Price Increases
Internal and External Productivity Initiatives
Consolidation of Job Functions and Facilities
Position the Company for Challenging Economy with Consolidation ofOperations
Balance Sheet
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Cash Conversion Debt Reduction
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Balance Sheet
6/30/2009
Current Assets 349.1$urren a es .Working Capital 212.6$
Current Ratio 2.6Total Assets 1,123.5$
Total Debt 258.4$
o a qu y .
Debt to Equity 36.8%
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Fiscal Year 2009 Highlights
Re orted Solid Results at Hain Celestial U.S. includin CelestialSeasonings Turnaround Despite Challenging Economic Times
the Leading Natural and Organic Products Company
Diversity of Business in Varied Product Categories in the United States,Canada and Europe
License Agreement with Martha Stewart Living Omnimedia to ProduceNatural Home Cleaning Solutions, a New Category for FY10
Fiscal Year 2010 Guidance, excluding Hain Pure Protein
Sales $1.010 Billion to $1.030 Billion, 4-6% Growth
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arn ngs er are o . o .Guidance includes stock compensation expense for the full year and Daily Bread consolidation into Luton facility in thefirst quarter
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Reconciliation of GAAP Results toNon-GAAP Presentation
Reconciliation of adjusted to GAAP basis:Years Ended June 30
FY 2008 FY 2009
Gross Profit
Adjusted basis 298.7$ 284.4$
Factory start-up, absorption and integration costs (7.5) (14.4)
Restructuring and sku rationalization (6.9) (8.8)
Others (2.2)
as s . .
FY 2008 FY 2009
SG&A Expenses
. .
Stock-based compensation 2.1 7.2
Professional fees (net of insurance recovery in 2009) 5.8 1.4$
Restructuring expenses 3.9 4.1
Settlement 1.4
Others 2.1
GAAP basis 207.6$ 215.0$
FY 2008 FY 2009 FY 2008 FY 2009
Net Income EPS
. . . .
Stock-based compensation (2.9) (4.5) (0.07) (0.11)
Professional fees (net of insurance recovery in 2009) (3.5) (0.9)$ (0.08) (0.02)
Factory start-up, absorption and integration costs (5.4) (9.9) (0.13) (0.24)
Restructuring and sku rationalization (6.9) (8.3) (0.16) (0.20)
Gain on disposal 1.2 - 0.03 -
16
ett ements . .
Impairment of intangibles (48.5) (1.20)Others (1.8) (0.06)
GAAP basis 41.2$ (24.7)$ 0.99$ (0.61)$
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Over a Decade of Changing the
Way the World Eats
A Healthy Way of LifeTM
Barclays Capital
Back -to-Schoo l Conference
September 10, 2009
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