Pilgrim's Pride Corporation · NASDAQ:PPC

Pilgrim's Pride — Q3 2017 Earnings Presentation

23 slides from Pilgrim's Pride's earnings presentation, Nov 8, 2017

  1. Slide 1: Financial Results for Third Quarter Ended September 24, 2017

    Pilgrim’s Pride Corporation (NASDAQ: PPC) Financial Results for Third Quarter Ended September 24, 2017

  2. Slide 2: Cautionary Notes and Forward-Looking Statements

    Cautionary Notes and Forward-Looking Statements  Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” an

  3. Slide 3: 2017 Pullet Placements Flat YTD

     Pullet placements are flat indicating modest potential production growth for the remainder of 2017 and into 2018. 2017 Pullet Placements Flat YTD Source: USDA 3 Intended Pullet Placements 7,609 8,240 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

  4. Slide 4: Decline in Egg Productivity Offsetting Layer Growth

    Decline in Egg Productivity Offsetting Layer Growth Source: USDA 4  Hatching layers are up to counter less productive new breed and older flock, both of which generate fewer eggs per bird. 53,571 57,014 0 10,000 20,000 30,000 40,000 50,000 60,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o

  5. Slide 5: Hatchery Utilization Remains Close to Peak Levels

    5 84.00% 85.00% 86.00% 87.00% 88.00% 89.00% 90.00% 91.00% 92.00% 93.00% 94.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % Hatchery Utilization 2016 2017 5 year avg. Hatchery Utilization Remains Close to Peak Levels

  6. Slide 6: Lower Hatchability Reduces Impact of +2.7% YTD Egg Sets

    Lower Hatchability Reduces Impact of +2.7% YTD Egg Sets Source: USDA 6 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 220,000 225,000 T h o u s a n d s o f E g g s Chicken Egg Sets by Week - USDA 2015 2016 5 year avg 2017 79.50% 80.00% 80.50% 81.00% 81.50% 82.00% 82.50% 83.00% % Chi

  7. Slide 7: 2017 Chick Placements Modestly Higher

    2017 Chick Placements Modestly Higher Source: USDA 7

  8. Slide 8: Avg Weight Trending Down; Jumbo Bird Share Not Growing

    Avg Weight Trending Down; Jumbo Bird Share Not Growing After Significant Increase Since 2011 Source: USDA 8

  9. Slide 9: Hurricane Impacting Cold Storage Inventories

    Hurricane Impacting Cold Storage Inventories Source: USDA  Overall inventories rose in September due temporary reduction in demand because of hurricane-related logistical issues. 9 769 823 200 300 400 500 600 700 800 900 1,000 Ja n Fe b M ar Ap r M ay Ju n Ju l Au g Se p Oc t No v De c Chicken Cold

  10. Slide 10: Cutout Values Moving Closer to Seasonal Trends

    After Strong Grilling Season, Cutout Values Moving Closer to Seasonal Trends Source: PPC 10 69.01 50.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 1/ 1 1/ 15 1/ 29 2/ 12 2/ 26 3/ 11 3/ 25 4/ 8 4/ 22 5/ 6 5/ 20 6/ 3 6/ 17 7/ 1 7/ 15 7/ 29 8/ 12 8/ 26 9/ 9 9/ 23 10 /7 10 /2 1 11 /4 11 /1 8

  11. Slide 11: Wings Counter-seasonally Strong, Other Parts Tracking to 5-year Average

    Wings Counter-seasonally Strong, Other Parts Tracking to 5-year Average Source: USDA 11 111.31 75.00 95.00 115.00 135.00 155.00 175.00 195.00 1/ 6/2 01 7 1/ 20 /2 01 7 2/ 3/2 01 7 2/ 17 /2 01 7 3/ 3/2 01 7 3/ 17 /2 01 7 3/ 31 /2 01 7 4/ 14 /2 01 7 4/ 28 /2 01 7 5/ 12 /2 01 7 5/ 26 /2 01 7 6/ 9/2 01

  12. Slide 12: Small Bird and Retail Contracts In-line with Seasonality and Above 2016

    12 Small Bird and Retail Contracts In-line with Seasonality and Above 2016 Source: EMI EMI WOG 2.5-4 LBS 82.3 60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 100.00 105.00 110.00 1/2 /20 17 1/1 6/2 017 1/3 0/2 017 2/1 3/2 017 2/2 7/2 017 3/1 3/2 017 3/2 7/2 017 4/1 0/2 017 4/2 4/2 017 5/8 /20 17 5/2

  13. Slide 13: Corn Stocks to remain at high levels in '17/18

    Corn Stocks to remain at high levels in ’17/18  After record stocks in 2016, 2017 stocks projected slightly lower but market remains well supplied.  USDA lowers global stocks-to-use for 2017. Source: USDA 13 72.2 89.9 94.1 92.8 78.5 73.4 67.9 93.7 109.4 103.2 125.7 121.8 50 60 70 80 90 100 110 120

  14. Slide 14: Global Soybean Inventories Increasing

    Global Soybean Inventories Increasing  Global inventories of soybeans remain at record high levels, with expected growth in 2017.  USDA forecasts continued growth in oilseed demand in 2018 . Source: USDA 14 52.8 62.7 52.9 44.0 59.5 69.9 53.4 57.4 61.8 77.5 77.7 94.9 96.1 0 20 40 60 80 100 120 2005

  15. Slide 15: Third Quarter 2017 Financial Review

    Third Quarter 2017 Financial Review  Strength across all US business units, GNP operations significantly improved, MX results above expectations.  SG&A higher due to addition of GNP and Moy Park, investments in brands in USA and Mexico, and $19MM non- recurring acquisition/restructuring.  Adjuste

  16. Slide 16: Third Quarter 2017 Capital Spending

    Third Quarter 2017 Capital Spending Capex (US$M) Source: PPC  Strong Free Cash Flow generation has enabled us to direct more capital spending towards identified projects with rapid payback and structural projects.  New strategic projects will support key customers growth and de-emphasize our expos

  17. Slide 17: Investor Relations Contact

    Investor Relations Contact Investor Relations: Dunham Winoto Director, Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 17

  18. Slide 18: Appendix

    APPENDIX _ EE

  19. Slide 19: Appendix: EBITDA Reconciliation

    Appendix: EBITDA Reconciliation Source: PPC. “EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not

  20. Slide 20: Appendix: EBITDA Margin Reconciliation

    Appendix: EBITDA Margin Reconciliation 20 Source: PPC. EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period. Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) Thirteen Weeks Ended

  21. Slide 21: Appendix: Reconciliation of Adjusted Earnings

    Appendix: Reconciliation of Adjusted Earnings 21 Source: PPC. A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows: Source: PPC PILGR

  22. Slide 22: Appendix: Adjusted EPS Bridge

    Appendix: Adjusted EPS Bridge 22 Source: PPC. A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows: Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24

  23. Slide 23: Appendix: Segment and Geographic Data

    Appendix: Segment and Geographic Data 23 Source: PPC. Source: PPC PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24, 2017 September 25, 2016 September 24, 2017 September 25, 2016 (Unaudited) (In thousands) Sources

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