Filed by The J. M. Smucker Company
Commission File No. 001-05111
333-68416
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: The Procter & Gamble Company
Commission File No. 001-00434
This document is being filed pursuant to Rule 425 under the Securities Act of
1933 and is deemed filed pursuant to Rule 14a-12 under the Securities Exchange
Act of 1934.
--------------------------------------------------------------------------------
INVESTORS' BRIEF
--------------------------------------------------------------------------------
SJM
[SMUCKER'S LOGO] THE J. M. SMUCKER COMPANY LISTED
NYSE
--------------------------------------------------------------------------------
COMPANY PROFILE NOVEMBER 2001
--------------------------------------------------------------------------------
The J. M. Smucker Company, headquartered in Orrville, Ohio, is the leading
marketer of jams, jellies, preserves and other fruit spreads in the U.S. It is
also the leader in dessert toppings, natural peanut butter and health and
natural foods juice products. The Smucker's brand is widely known and trusted
for quality food products.
In addition to the Smucker's brand, Smucker markets products under
numerous other brands including Dickinson's, Mary Ellen, Laura Scudder's, Adams,
IXL (Australia), Double Fruit (Canada), The R. W. Knudsen Family, and Santa Cruz
Organic. The Company distributes its consumer products through grocery and other
retail outlets, foodservice establishments, specialty and gourmet shops, health
and natural foods stores, and consumer direct vehicles such as the Internet and
a showcase store in Orrville, Ohio.
Smucker also produces industrial ingredients such as fruit fillings and
toppings for use by other food manufacturers in their products. The Company has
international operations in Australia, Canada, Scotland, Mexico, and Brazil and
exports product to numerous other areas, including the United Kingdom, Eastern
Europe, South and Central America, and Asia. In October 2001, it announced that
it reached a definitive agreement with Procter & Gamble to merge the Jif peanut
butter and Crisco oils businesses into the Smucker Company in an all-stock
transaction.
--------------------------------------------------------------------------------
CORPORATE INFORMATION
--------------------------------------------------------------------------------
ADDRESS: TIMOTHY P. SMUCKER
1 Strawberry Lane Chairman & Co-CEO
Orrville, OH 44667
RICHARD K. SMUCKER
PHONE: (330) 682-3000 President & Co-CEO
FAX: (330) 684-3370
WEB: www.smuckers.com VINCENT C. BYRD
VP & General Manager,
INVESTOR RELATIONS CONTACT: Consumer Market
Debra A. Marthey
Assistant Treasurer FRED A. DUNCAN
Phone: (330) 684-3385 VP & General Manager,
Industrial Market
STEVEN J. ELLCESSOR
VP-Finance & Administration,
Secretary, & General Counsel
--------------------------------------------------------------------------------
HIGHLIGHTS OF JIF AND CRISCO TRANSACTION
--------------------------------------------------------------------------------
- Jif and Crisco brands and the associated assets will be spun off from the
existing P&G Company and then immediately merged with The J.M. Smucker
Company
- P&G shareholders will receive one share of new J.M. Smucker stock for
every 50 shares they hold in Procter & Gamble
- Smucker sales are expected to approximately double, to $1.3 billion, with
the successful closing of the transaction
- Transaction uses a "Revised Morris Trust" structure
- Expanded Smucker Company will include the Jif and Crisco manufacturing
plants in Lexington, KY, and Cincinnati, OH
- This transaction is expected to close during second quarter of calendar
2002, conditioned on the receipt of required shareholder and regulatory
approvals
- Actual results may differ materially from expected results because of
changes in market conditions, uncertainties relating to necessary
approvals including IRS ruling, risks of integration, and other factors
--------------------------------------------------------------------------------
HISTORY
--------------------------------------------------------------------------------
In the early 19th century, John Chapman, or "Johnny Appleseed," wandered
the Ohio countryside, sowing apple seeds and securing a place in American
legend. It was from the fruit of Johnny Appleseed's trees that Orrville, Ohio,
resident Jerome Monroe Smucker first pressed cider at a mill he opened in 1897.
Later, he also prepared apple butter, which he sold from the back of a
horse-drawn wagon. Each crock bore a hand-signed seal as his personal guarantee
of quality.
Before long, J. M. Smucker's name became well known in its own right, as
residents throughout the region - and eventually the nation - came to associate
the Smucker's name with wholesome, high-quality fruit products. Much like Johnny
Appleseed's trees, The J. M. Smucker Company has strong roots that have allowed
it to grow and prosper over the last 100 years. Today, its products can be found
in homes and restaurants throughout the world.
--------------------------------------------------------------------------------
STRENGTHS/BENEFITS
--------------------------------------------------------------------------------
- Natural, strategic fit with three #1 American icon brands
- Same distribution channels, similar customers, quality reputation, and
sold in center of aisle within the retail store
- Highly accretive to earnings - expect to increase net income to $95 - $105
million in first full year and potential to grow EPS by 30% - 40%
- Provides substantial cash flow creating greater opportunities to acquire
additional leading brands
--------------------------------------------------------------------------------
MARKET FACTS
--------------------------------------------------------------------------------
(as of November 7, 2001)
Recent Price $33.39
52 Week High $36.10
52 Week Low $22.56
52 Week Return 44.0%
Market Capitalization $815.4 million
Shares Outstanding 24.4 million
Fiscal Year End April 30
--------------------------------------------------------------------------------
STOCK PRICE
--------------------------------------------------------------------------------
[LINE GRAPH]
--------------------------------------------------------------------------------
RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
(dollars in millions except per share amounts)
THREE MONTHS
ENDED JULY 31, YEARS ENDED APRIL 30,
2001 2000 2001 2000 1999
---- ---- ---- ---- ----
Net Sales $169.8 $166.3 $ 651.2 $ 641.9 $ 612.7
EBITDA $ 22.4 $ 22.4 $ 83.7 $ 81.9 $ 82.4
EBITDA per share $ 0.92 $ 0.79 $ 3.30 $ 2.86 $ 2.83
Income before nonrecurring $ 13.7 $ 15.7 $32,972 $35,983 $37,763
Income per share before nonrecurring $ 0.35 $ 0.34 $ 1.30 $ 1.26 $ 1.30
Net Income $ 8.4 $ 8.6 $30,667 $26,357 $37,763
EPS $ 0.35 $ 0.30 $ 1.21 $ 0.92 $ 1.30
Wtd. Average Shares (in millions) 24.3 28.2 25.4 28.7 29.1
Dividends $ 0.16 $ 0.16 $ 0.64 $ 0.61 $ 0.57
(Excludes nonrecurring and cumulative effect adjustment)
--------------------------------------------------------------------------------
THE SMUCKER ADVANTAGE
--------------------------------------------------------------------------------
- Consistent management with fourth generation family members leading the
business
- Commitment to continually enhancing shareholder value
- Strong cash flows; solid balance sheet; low debt; consistent dividend
payout
- Key strategic partnering relationships
- Excellence in marketing and distribution
- Strong brands, number one position in fruit spreads, ice cream toppings,
natural peanut butter and natural fruit juices categories
- New product expertise
- Steady sales growth
- Dedication to the highest standards of quality for consumers
- Company selected on Fortune magazine's list of "The 100 Best Companies To
Work For" for four consecutive years
- History of maximizing potential of leading brands
--------------------------------------------------------------------------------
PRINCIPAL SUBSIDIARIES
--------------------------------------------------------------------------------
Smucker Quality Beverages, Inc.
- Chico, CA
Smucker Specialty Foods Company
- Ripon, WI
Henry Jones Foods Pty Ltd
- Carlton, Victoria, Australia
J.M. Smucker (Canada) Inc.
- Toronto, Canada
--------------------------------------------------------------------------------
FINANCIAL SUMMARY
--------------------------------------------------------------------------------
NET SALES BY PRODUCT CATEGORY
-----------------------------
------------
FY2001
$651 Million
-------------
BEFORE TRANSACTION
------------------
[PIE CHART]
East
----
Fruit Spreads 47%
Other 7%
Hand-Held 5%
Formulated 15%
Beverage 10%
Peanut Butter 7%
Toppings/Syrups 9%
AFTER TRANSACTION
-----------------
[PIE CHART]
East
----
Fruit Spreads 24%
Shortening/Oil 25%
Other 4%
Hand-Held 2%
Formulated 10%
Beverage 5%
Peanut Butter 26%
Toppings/Syrups 4%
NET SALES FOR PAST 10 YEARS
---------------------------
COMPOUNDED GROWTH RATES
-----------------------
5 YR. = 4.4% 10 YR. = 4.2%
[BAR CHART]
East
----
$ IN MILLIONS
-------------
1991 431
1992 459
1993 465
1994 479
1995 512
1996 526
1997 535
1998 575
1999 613
2000 642
2001 651
EARNINGS & CASH FLOW PER SHARE
------------------------------
(EXCLUDES NONRECURRING AND CUMULATIVE EFFECT ADJUSTMENT)
[BAR & LINE CHART]
$ PER SHARE
-----------
CASH FLOW EARNINGS
PER SHARE PER SHARE
--------- ---------
1991 1.47 1.07
1992 1.59 1.16
1993 1.71 1.27
1994 1.61 1.10
1995 1.67 1.12
1996 1.61 1.01
1997 1.81 1.06
1998 2.03 1.25
1999 2.10 1.30
2000 2.17 1.26
2001 2.36 1.30
The J. M. Smucker Company will file a proxy statement-prospectus and other
relevant documents concerning the proposed merger transaction with the
Commission. Investors are urged to read the proxy statement-prospectus when it
becomes available and other relevant documents filed with the Commission because
they will contain important information on the proposed transaction. You will be
able to obtain the documents filed with the Commission free of charge at the
website maintained by the Commission at www.sec.gov. In addition, you may obtain
documents filed with the Commission by The J. M. Smucker Company free of charge
by requesting them in writing from The J. M. Smucker Company, Strawberry Lane,
Orrville, Ohio 44667, Attention: Investor Relations, or by telephone at (330)
682-3000.
The J. M. Smucker Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from The J. M. Smucker
Company's shareholders. A list of the names of those directors and executive
officers and descriptions of their interests in The J. M. Smucker Company is
contained in The J. M. Smucker Company's proxy statement dated July 10, 2001,
which is filed with the Commission. Shareholders may obtain additional
information about the interest of the directors and executive officers in this
transaction by reading the proxy statement-prospectus when it becomes available.