Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — BMO Capital Markets Agriculture and Protein Conference 2007
38 slides from Pilgrim's Pride's conference presentation, May 17, 2007
Slide 1: Pilgrim's Pride Corporation
Pilgrim’s Pride Corporation BMO Capital Markets Agriculture and Protein Conference May 17, 2007 0.B. Goolsby, Jr. Rick Cogdill Chief Executive Officer Chief Financial Officer wuw.pilgrimspride.com
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and Forward-Looking Statements Staternents contained in this presentation that state the intentions, plans, hopes, beliefS, anticipations, expectations or predictions of the future of Pilgrim's Pride Comoration and its management, including as to the expected benefits and synergies
Slide 3: Pilgrim's Pride: Company Snapshot
Pilgrim’s Pride: Company Snapshot = Founded in 1946; IPO in 1986 = Largest chicken producer in the U.S. =" NYSE-listed: PPC = 66,555,733 common shares outstanding = ~$1 billion of public debt = On an LTM pro forma basis (“PF”), PPC sold ~8.8 billion pounds of dressed chicken totaling $7.5 billion as
Slide 4: Million Lbs.
Million Lbs. Compound Annual Growth Rates 10 FY 1997 — FY2006 18.7% 9 FY 1997 —LTM 3/31/07 PF = .23.1% : lal! ; lal all Fy 1997 FY 1998 FY1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 LIM 3/31/07 PF
Slide 5: Number One Chicken Company
Number One Chicken Company U.S. Chicken Industry Leaders’ Market Share by Production™ Other, 31.2% Foster, 2.3% Mountaire , 3.8% Sanderson , 4.7% Wayne 4.8% Pilgrim's Pride, 24.8% Perdue, 7.7% Tyson , 20.7% Source: WATT Poultry USA, February 2007, (1) Ready-To-Caok milion pounds per week
Slide 6: Expanded North American Footprint
Expanded North American Footprint
Slide 7: U.S. Industry Overview
U.S. Industry Overview wuw.pilgrimspride.com
Slide 8: Recent Positive Pricing Trends
Recent Positive Pricing Trends Breast Meat Leg Quarters
Slide 9: Other Industry Dynamics ...
Other Industry Dynamics ... U.S. Chicken Consumption ‘Sovce: Apr Nab raIC wea Cove Cold Storage Inventories abe 6 8
Slide 10: Feed Conversion Rates
Feed Conversion Rates (Ibs feed / Ibs meat) Despite the recent increase in com prices, the chicken industry will benefit Cattle from a better feed conversion rate Hogs compared to beef and pork companies Turkey Chicken The chicken industry has the lowest feed conversion rate among the three key prot
Slide 11: Business Overview
Business Overview wuw.pilgrimspride.com
Slide 12: Geographic Sales Mix
Geographic Sales Mix Pro forma LTM For the Period Ending 3/31/07* $7,530.8 million * Pro forma for acquisition of Gold Kist. See Appendix A for reconciliation.
Slide 13: ..With More Diversified End Markets
..With More Diversified End Markets - Enhances fresh retail and prepared foods opportunities Pilgrim’s Pride Gold Kist Combined FY 2006 Net Sales: $5.3 bn FY 2006 Net Sales: $2.1 bn FY 2006 Net Sales: $7.4 bn @ Foodservice Retail @Export/Other (1) Percentage of US. Chicken Sales Dollars
Slide 14: $100 Million Net Synergies Identified from GKIS Acquisition
$100 Million Net Synergies Identified from GKIS Acquisition Other, 7% Live Operations, Procurement, 15% 7% SGBA, 24% Processing, 37%
Slide 15: Differentiated by our Focus on Prepared Foods
Differentiated by our Focus on Prepared Foods 2,400 2,200 2,000|- 1,800 1,600 1,400 1,200 1,000 B00 - $637 400 2000 *See Appendix B for reconciliation 589.4 CAGR 2000 - 2003 12.6% 2000-2006 PF 23.2% $1,767.6 $294.3 $818.2 7S 163.0 659.9 731.3 $735.3 al 213.8 1,553.8 $1806.3 gi 9758 283.4 308.5 1,622
Slide 16: Pilgrim's Has National Coverage Across All Channels...
Pilgrim’s Has National Coverage Across All Channels... Broadline distributors “yy Retail National Fast food _ account QSR
Slide 17: Driving Growth thru Innovation
Driving Growth thru Innovation At Pilgrim’s Pride, we understand that delivering innovative ideas to our customers is the key to growth.
Slide 18: A "Natural" Growth Opportunity
A “Natural” Growth Opportunity = Research indicates that consumers want “natural” chicken = Tremendous opportunity for us to leverage our consumer- trusted brand to meet growing demand for “natural” products = USDA standards strictly define “natural” - Chill pack products are branded as “natural” wi
Slide 19: Rick Cogdill: Financial Overview
Rick Cogdill Chief Financial Officer Financial Overview wuw.pilgrimspride.com
Slide 20: Formidable Protein Industry Player
Formidable Protein Industry Player LTM Revenues 3-Year Average Gin lions) ESIrDAD Chicken Beef Pork ‘Tyson Foods 925918 $1,065, ¥ voy smelt $798 voy Swift & Co. $130 vo PF 97.531 9686") v oy 4 $533 v ¥v Sanderson Farms $108 v Note: LTM recut through the most cent tmelve-menth rpoting petod foreach p
Slide 21: Historical Financial Performance
Historical Financial Performance @ inthousands) Aggregate Combined Results | Pro Forma Results Fiscal Year Ended I FYE® LT MOP? Octaber2, October, September 30, | September 30, March 31, 20040 2006 2006 } 2006 2007 Net Sales ! PRC $5363723 $5,686,275 5235565 | 95,235,565 $5,957 141 KIS 2.390551 2,30
Slide 22: Operating Margin as % of Sales
cee PPC Reported Operating Margin as % of Sales “22 Fiscal Years Ended $100 Million Synergies = approximately 68% Net Effect on 0.1. assuming $8 billion in annual sales 100% an% 60% 40% 20% 0.7% 00% 1997 00 1999 2000 2001 one 2003+ anne = os 2006" -S-US Chicken —eAll Operations —*~Adj. All Operation
Slide 23: Capital Expenditures: Investing Behind Growth & Efficiency
Capital Expenditures: Investing Behind Growth & Efficiency Fiscal Years Ended HI Maintenance/Other MEE Expansion/Efficiency = = (8 in mitions) 250 230 210 190 170 $143.9 ee $112.6 $116.6 130 $92.1 $29.9 110 $80.4 90 70 50 30 $48.0 10 $18.8 -10 $214.2 $79.6 $44.1 $61.6 2000 2001 2002 2003 2004 2005 2
Slide 24: Pilgrim's Pride Balance Sheet
Pilgrim’s Pride Balance Sheet Fiscal Years Ended Million $ $4,400 $4,000 $3,600 $3,200 $2,800 $2,215 1 $2,400 $2,000 $1,600 $1,224 $1,117 $1,200 733 $B00 0 eos UP $400 $0 2005 2006 2Q FYO7 @Assets Short-Term Liabilities Long-Term Liabilities Equity
Slide 25: Liquidity and Capital Resources
Liquidity and Capital Resources We've Historically maintained significant liquidity As of March 31, 2007 (8 in milions) Source of Liquidity Facility Amount Amount Outstanding __Net Availabilit Cash and cash equivalents $- $- $69.2 Investments in available for sale securities 2 = 24.0 Debt Facilities
Slide 26: Debt Maturity Profile
Debt Maturity Profile G in millions) = No near-term debt maturity ‘$706.4 provides further credit protection and liquidity for Pilgrim’s Pride ™ Annual interest expense of ~$145 million $39 $10.1 = $8.3 $8.4 $5.0 2007-2008 20g 2010 zi 2012 2013 20140152016 = ag17_ Thereafter @Bond mNotes Payable” »
Slide 27: Pro Forma Credit Metrics
Pro Forma Credit Metrics (8 in millions) FY04 thru FYO06 Average Adjusted EBITDA? $686 LTM 3/31/2007 Adjusted EBITDA® 206 LTM 3/31/2007 Interest Expense 154 3-Year Average Adjusted EBITDA Sr. Secured Deht/3-Year Average Adjusted EBITDA 12x Total Debt /3-Vear Average Adjusted EBITDA 26 Net Debt / 3-Y
Slide 28: Going Forward...Our Financial Goals Remain Clear
RN Going Forward...Our Financial Goals Rea Remain Clear ' je reducing of return We believe our growth opportunities are still outstanding!
Slide 29: Questions & Answers
Questions & Answers Pilgrim’s Pride Corporation BMO Capital Markets Agriculture And Protein Conference May 17, 2007 wuw.pilgrimspride.com
Slide 30: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures and Other Computations wuw.pilgrimspride.com
Slide 31: Appendix B - Reconciliation
Appendix B - Reconciliation Pro forma LTM U.S. Chicken Net Sales (8 in millions) FYE 6Mos.Ended 6Mos.Ended = Pro forma LTM grorzo06 - —aitzo0s =~ iatroo7 == aratran7!"X U.S Chicken Sales: Prepared Foods Foodservice $1840.8 $ soa7 $$ 940.4 $ 18715 Retail 392.1 190.7 262.8 454.2 Total Prepared Foods $
Slide 32: Appendix C - Reconciliation
Appendix C - Reconciliation Gold Kist Financial Performance Gold Kist Summary Financial Information @ inmitions) FYE QEnded Transition L™ e26m4- —a2703 + QeEnd i024 = 10/204 Net Income 110.894 23.485 34.018 121.427 Add-backs: Income Tax Expense (Benefit) 41817 11.746 18.772 48.843 Net Interest Expen
Slide 33: Appendix D - Reconciliation
Appendix D - Reconciliation Combined Summary Financial Information 8 in thousands) Pro Forma LTM 08 FYE wos. Ended 6 Mos, Ended @ Ended grao2008® = 4012006 + 3/31/2007 = 331/207 Net Sales PRC 95,235,585 $2,609,521 $3,331,097 $5,957,141 KIS 2,120,374 4,077,725 29,300 4,878,949 Pro forma Adjustment (1
Slide 34: Appendix E - Reconciliation
Appendix E - Reconciliation Pro forma LTM Ending 3/31/07 Adjusted EBITDA 1 H einen Yaar [rs rare ire oy H HFT mane 18s | sau H i tra sia snszz | 108.068 H sn.195 rapstt ssaarz | sansa srs ae iausas | iigea ies sansa nose | age H H ery H af H vans H A H a am at H san 2 at 5 ° sans | ens H pai | pan H
Slide 35: Appendix F - Reconciliation
Appendix F - Reconciliation GKIS LTM Ending 10/2/04 Adjusted EBITDA 8 in ritvons) FYE QEnded Transition L™ eem4 —- ~—9a7m3 + QEnd 1024 = 10/204 Net Income 110.894 23.485 34.018 121.427 Add-backs’ Income Tax Expense (Benefit) 41817 11.748 18.772 48.843 Net Interest Expense 27.799 7.430 7.879 28.248 D
Slide 36: Appendix G - Reconciliation
Appendix G - Reconciliation Pro forma LTM Ending 3/31/07 Adjusted EBITDA (le witions) emosiie € Months Pro forma LTM Ended FYE Ended Ending 4101106 9710006 yest!) yaar 2) Pilgrim's Pride Wet Income 8.278 -34.232 248.813 140.469 Add-Bock: Income Tax Expense (Benefit) “4.185 2.085 -28.804 132.860 Net
Slide 37: Appendix H - Reconciliation
Appendix H - Reconciliation Pro forma LTM Ending 3/31/07 Adjusted EBITDA in mittens) FYE 6Mos. Ended 6 Mos. Ended Proforma LTM grsoo0s - 4/7008 + sia1z007_ = _ 3/1/2007") Net Incame -112.622 -86.073 -£2.920 -140.469 Adlckbacks: Income Tax Expense (Benefit) 60.822 36.327 46.511 -132.660 Net Interest
Slide 38: Appendix I - Reconciliation
Appendix | - Reconciliation Adjusted Operating Margin as % of Sales (Bin thousands) Fiscal Years Ended 09730706 10701705 Tor02/04 0927703 09728702 Net Sales $ 5,295,565 $ 5,666,275 $ 5,363,723 $ 2.619.345 $ 2,593,718 Adjustments Estimated Turkey Recall Effects 43,800 98,000 Adjusted Sales $5,205,565
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