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The Hard Slog Ahead
USC Marshall School of Business
Career Advantage Program Presentation
Christopher Lischewski
President & CEO
Bumble Bee Foods, LLC
January 28, 2010

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Starting with some background on myself, I received my BS from
the Marshall School in 1982
Personal Background
• Air Force brat who spent most of childhood in Europe
• Graduated high school in Las Vegas in 1978 and went to
Tulane in New Orleans
• Transferred to USC as a junior
• Graduated in 1982 with a BS in Finance and Accounting
• Had two job offers
– Manhattan Beach vs Bakersfield
– $24,000/ year vs $18,000/year

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My work experience covered a variety of different experiences
Personal Background
• Worked with a division of Westinghouse in Vernon, CA
(7-Up Bottling companies)
• Moved to TRW in 1983
• Completed MBA in International Finance at USC as part of
evening program in 1986
• Went into Management Consulting
• Joined a client in 1991 (StarKist / H.J. Heinz)
• Joined Bumble Bee in 1999

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My first executive position at StarKist was very rewarding
StarKist
• Part of turnaround team for a division of Heinz that was losing money
• Initially ran global procurement and added on global operations and ultimately
ran the European division
• Changed entire procurement structure which included becoming the world’s
largest tuna fishing fleet operator
• Built new factories in Ecuador, Ghana and the Seychelles on way to achieving
global Low Cost Operator (LCO)
• Acquired companies in the U.K. and Italy
• Significantly enhanced business performance and profitability
– Grew U.S. business to 50% market share
– Established largest tuna company in Europe
– Forced Bumble Bee and Chicken of the Sea into bankruptcy within one
month of one another

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This led to an even more exciting opportunity at Bumble Bee
Bumble Bee
• Joined a private equity firm that had taken Bumble Bee out of bankruptcy in 1999
• Did a number of transactions
– Integrated three seafood acquisitions and sold to ConAgra in 2000
– Went private in 2003
– Went pubic in 2004
– Went private again in 2008
• During that process:
– Built a great team
– Grew revenues from $450 to $950 million
– Grew share from 18% to 32% and became the largest branded seafood
company in North America
– Established position of LCO with new factories in Fiji, Trinidad and Mauritius
– Grew EBITDA from $17 to $116 million
Proving that ‘low tech’ can be exciting and lucrative!!!

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I have always had several simple philosophies regarding work that
have served me well during my career
Work Philosophy
• It’s going to take up most of your life so enjoy what you do
• Part of every job entails ‘crap’ so don’t complain about it –
just power through it
• Hard work IS recognized and DOES pay
• Whatever you do, be the ‘best’ at it

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And in how I run my business, I believe there are
several key factors for success
Factors for Success
• Have a plan (ultimate vision, long term strategy and short term tactics) –
but remain flexible
• People, people, people
–Build the best team in the industry
–Do not accept mediocrity
• Know your competition – well!
• Know your numbers (and what drives them) even better
• Continually challenge your organization to be better – do not accept
complacency or stagnation
• Be responsive and make informed but rapid decisions
• Always push the envelope in every part of your business – always
demand MORE
• Be the low cost operator
–Minimize staff, layers and bureaucracy
–Ruthlessly purse cost optimization

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But this talk isn’t about me – it’s about you. Your class will be
coming out of school amidst the most serious economic crisis
your parents have ever experienced

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The official start of the crisis can be traced back to
September 15th 2008
Sept 15th 2008
Financial Institutions Collapse
Credit Markets Seize Up
Historic Bail Out Plans Announced
Economic Datapoints Hit New lows
Global Economies Weaken
Consumer Spending Plunges

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Following the collapse the economy went into a tailspin

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The stock market dropped more than 50%
Dow dropped 52% from a high of
13,624 at 12/31/07 to 6,561; recent
level of 10,194 on 1/26 still
represents loss of 25%
S&P 500 down 57% from a
high of 1,565 at 10/09/08 to
679; recent level of 1,092 on
1/26 still represents loss of
30%

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35
45
55
65
75
85
95
105
115
125
M
ar-01
Jul-01
Nov-02
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ar-02
Jul-02
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ar-03
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ar-04
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ar-05
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ar-07
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M
ar-08
Jul-08
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M
ar-09
Jul-09
Nov-09
2001 2002 2003 2004 2005 2006
Consumer confidence levels reached record lows
2007 2008
Recession,
9/11
Corp
Scandals
War
Rebound
Huge job
gains
Fall in gas
prices
Housing,
Energy,
Credit,
Economy
Katrina
2009
Spike in
gas prices

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And Consumer spending reflected a shift to value
-20 -15 -10 -5 0 5 10 15
BJ's
Costco
Sams
Kroger
Safeway
Dollar General
Family Dollar
Dollar Tree
Walmart
CVS
Rite Aid
Walgreens
Whole Foods
Target
Nordstrom
JCPenney
Home Depot
Kohls
Stock Up
& Save
Discretionary Spending
Value &
Convenience
SuperValu
Macys
Consumer Spending Trends

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0
2
4
6
8
10
12
14
1952-IV
1955-II
1957-IV
1960-II
1962-IV
1965-II
1967-IV
1970-II
1972-IV
1975-II
1977-IV
1980-II
1982-IV
1985-II
1987-IV
1990-II
1992-IV
1995-II
1997-IV
2000-II
2002-IV
2005-II
2007-IV
The ensuing credit crunch has caused severe consternation
amongst a U.S. society that has become a “Culture of Debt”
Personal Savings Rate 1952-2008
PersonalSavingsRate(%)
(%)
Household Debt to Income Ratio (%)

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And the credit situation remains perilous
Bank Write-offs as % of Outstanding Loans

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National unemployment in the U.S. had doubled over the
last two years
US Unemployment Rates
-
4.9 4.8 5.1 5.0
5.5 5.5 5.7 6.1 6.1 6.5 6.7
7.2
7.6
8.1 8.5 8.9
9.4 9.5 9.4 9.7 9.8
10.2 10.0 10.0
Year2008-012008-022008-032008-042008-052008-062008-072008-082008-092008-102008-112008-12
2009-1
2009-2
2009-3
2009-4
2009-5
2009-6
2009-7
2009-8
2009-92009-102009-112009-12
US Unemployment Rates

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And globally, unemployment is expected to increase by 60 million
with some 200 million workers at risk of joining the ranks of people
living on less than $2/day
Risk of Social Unrest Due to Economic Conditions

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U.S. GDP declined in 2009 while the U.S. government racked up
record increases in budget deficits and national debt

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As we move into 2010, Total Debt is projected to hit $15
TRILLION while Debt as % of GDP approaches 100%.
Concurrently, China has become our largest creditor
Major Foreign Holders of U.S. Treasury Securities (Sep
2009)
23.4%
21.1%
6.4%5.5%
5.6%
38.0%
China Japan UK Oil Exporters Caribbean Banking Centers All Others

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Of grave concern is the fact that if we don’t reign in spending, we
won’t even be able to cover the interest on our debt

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So what’s the answer???

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Wow – wasn’t that uplifting!!!
Now let me shift gears and talk about some major
trends you will be part of over the next five years
and I will close with what I think some key success
criteria are for you as you finish your under-
graduate careers at USC

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Looking forward, we anticipate transformative shifts in consumer
consumption, segmentation and economic participation
• Recession-induced structural displacement in spending
(value-seeking)
• New heights in private label penetration
• Shift from conspicuous to virtuous consumption
(shopping becomes a “careful investment” vs. “recreational
activity”)
• Aging baby-boomers – senior citizens become a
formidable special - interest group
• Rapidly growing ethnic diversity and buying power
• Evolving family composition with increased participation
of women in the workforce
• Heightened consumer expectations with increased
information access for online comparison
• Louder, proactive consumer participation in the
economy enabled by web – negative comments spread
quickly
U.S. Consumers

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Current “initiatives” will become norms as the marketplace
undergoes right-sizing and is increasingly subject to new “rules”
• Consideration for Health and safety, Environmental sustainability
and Convenience become commonplace
• Environmental practices dictate brand “character”: organic,
eco-friendly products and packaging, fair treatment of
employees / suppliers
• Real-estate downsizing and re-urbanization
• Concentration of power through further consolidation of
retailers and manufacturers – increased competition for
reduced consumer spending dollars
• Expanding federal activism – more rapid and deeper
regulatory participation
• Cross-sector reforms – labor, taxation, etc
• Private-sector credibility gap vs NGO Activism
• Increased demand for Corporate governance and social
responsibility
Marketplace

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Additionally, several ‘wildcards’ will influence the state of the
global ecosystem
• Devaluation of the “American Economic model”
• Elevation of emerging economies (esp. China) in global
geopolitical and economic rebalancing
• Threat of competing global currency vs. greenback
• Unprecedented national debt repaid by consumers through
taxation/inflation (consumer disposable income the “fall guy”)
• Loss of AAA country credit rating
• Unfunded pension and healthcare liabilities
• Rush to shore up natural resources (e.g. iron ore, oil) to
ensure national wealth/security
• Companies invest and exploit foreign resources leading to
international frictions and national protection of resources
• Declining talent pool with rising appeal of opportunities in
emerging economies
Wildcards

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So what will it take to succeed? First off, you need to establish
your long term career objectives. Then couple that with…
Success Factors for New Grads
• Solid education from a premier university
• Focus on expanding ‘global’ knowledge while still in school
– Courses in history &languages, international travel, reading (Economist)
• Emphasis on ‘hard’ degrees -- finance / accounting
• Good experience – work, athletics, volunteer, social
– Experiences that set you apart and show you as a self-starter
• Networking – use contacts to open doors – don’t be too proud
• Realism – both in your own capabilities and the jobs / salaries that are available
• Tenacity – expect to get rejected often but don’t give up
• Willing to re-locate to where the opportunities are and become a ‘citizen of the
world’
• Willing to sacrifice in the short term to build a successful future
In today’s environment, almost any job is a good job – and it’s a start
upon which to build towards your long term objectives

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Thank you – and GOOD LUCK!