Slide 1: Financial Results for Fourth Quarter and Year Ended December 26, 2021
Pilgrim’s Pride Corporation (NASDAQ: PPC) To be the BEST Financial Results for Fourth Quarter and Year Ended December 26, 2021
Slide 2: Cautionary Notes and Forward-Looking Statements
To be the BEST Cautionary Notes and Forward-Looking Statements Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking stat
Slide 3: Pullet Placements Up 7.1% Y/Y in Q4 2021
To be the BEST Pullet Placements Up 7.1% Y/Y in Q4 2021; 2021 Placements +4.9% vs. 2020 Source: USDA 3 Intended Pullet Placements - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th ou sa nd H ea d 2020 2021 5 Yr. Avg.
Slide 4: Hatching Layers Maintain Steady Y/Y Growth; Eggs/100 Consistently Improving vs. 2020
To be the BEST Hatching Layers Maintain Steady Y/Y Growth; Eggs/100 Consistently Improving vs. 2020 Source: USDA 4 Broiler layer flock up +3.4% on average in 2021 vs. 2020 Q4 2021 layer flock 1.9% greater than Q4 2020 Eggs/100 up +0.7% in 2021 vs. 2020 Q4 2021 Eggs/100 1.4% greater than Q4 2
Slide 5: Hatchery Utilization Paced Above Historical Average Throughout 2021
To be the BEST 5 Hatchery Utilization Paced Above Historical Average Throughout 2021 Source: Agristats 78.0% 80.0% 82.0% 84.0% 86.0% 88.0% 90.0% 92.0% 94.0% 96.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 2020 2021 4 Yr. Avg. - Excl 2020 2021 average utilization at 92.1%
Slide 6: Egg Sets Trended Above 2020; Hatchability Below Historical Range
To be the BEST Egg Sets Trended Consistently Above 2020 Levels; However, Hatchability Maintained Trend Below Historical Range Source: USDA 6 200,000 205,000 210,000 215,000 220,000 225,000 230,000 235,000 240,000 245,000 Th ou sa nd s of E gg s Chicken Egg Sets by Week - USDA 5 Year Range 2020 2021
Slide 7: Average Weekly Broiler Placements Increased in 2021
To be the BEST Source: USDA 7 Average Weekly Broiler Placements Increased in 2021; Q4 2021 Placements Up 1% vs. Year Ago 160,000 165,000 170,000 175,000 180,000 185,000 190,000 195,000 H ea d (0 00 ) Chicken Broiler Placed by Week- USDA 5 Year Range 2020 2021 2022 5 Yr. Avg.
Slide 8: Industry Average Liveweights Continued to Climb in 2021
To be the BEST Source: USDA 8 Industry Average Liveweights Continued to Climb in 2021 23.0% 24.4% 26.9% 26.1% 25.5% 25.3% 24.8% 22.7% 21.8% 20.9% 19.6% 42.9% 40.7% 35.5% 35.0% 32.2% 31.2% 30.4% 30.2% 28.7% 27.4% 26.2% 19.1% 19.3% 19.4% 19.3% 20.9% 22.5% 23.6% 25.4% 26.2% 27.6% 28.4% 15.1% 15.6% 18.3
Slide 9: Cold Storage Inventories Remained Pressured in 2021
To be the BEST Cold Storage Inventories Remained Pressured in 2021; Q4 2021 Inventories Averaged 16% Below Q4 2020 Source: USDA Inventories at lowest level ending a year since 2014 Breast meat inventories 41% below year-ago levels Wings inventories improved Y/Y, but still only 8% above 5-year
Slide 10: Cutout Set New Highs in 2021; Late Strength in Pricing
To be the BEST Cutout Set New Highs in 2021; Pricing Experienced Late Strength to End 2021 Source: PPC, EMI 10 50.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 1/ 7 1/ 21 2/ 4 2/ 18 3/ 4 3/ 18 4/ 1 4/ 15 4/ 29 5/ 13 5/ 27 6/ 10 6/ 24 7/ 8 7/ 22 8/ 5 8/ 19 9/ 2 9/ 16 9/ 30 10 /1 4 10 /2 8 11
Slide 11: Pricing for Main Cuts Elevated Throughout Q4 2021
To be the BEST Source: USDA 11 Pricing for Main Cuts Elevated Throughout Q4 2021 242.2 75 95 115 135 155 175 195 215 235 255 1/ 7 2/ 6 3/ 8 4/ 7 5/ 7 6/ 6 7/ 6 8/ 5 9/ 4 10 /4 11 /3 12 /3 Ce nt s/ Lb USDA Boneless/Skinless Breast NE 5 Year Range 2020 2021 2022 5 Year Average 270.2 120 170 220 270 32
Slide 12: WOG Remained Steady Before Significant Strength in Q4
To be the BEST 12 WOG Remained Steady Throughout Much of 2021 Before Experiencing Significant Strength in Q4 Source: EMI 123.8 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 140.0 1/ 7 1/ 28 2/ 18 3/ 11 4/ 1 4/ 22 5/ 13 6/ 3 6/ 24 7/ 15 8/ 5 8/ 26 9/ 16 10 /7 10 /2 8 11 /1 8 12 /9 12 /3 0 Ce nt s/ Lb .
Slide 13: Corn Stocks Set to Increase
To be the BEST Corn Stocks Set to Increase US corn stocks are set to increase from 1.2B bushels last year to 1.5B bushels this year on higher production and lower exports USDA projects the US corn crop at 15B bushels vs. 14B last year on a yield of 177 bushels/acre Source: USDA 13
Slide 14: Soybean Stocks Building
To be the BEST Soybean Stocks Building US soybean stocks are forecasted to increase from 257M bushels last year to 350M bushels this year A combination of increased production and lower demand contribute to the build in stocks Source: USDA 14
Slide 15: Fourth Quarter 2021 Financial Review
To be the BEST Fourth Quarter 2021 Financial Review U.S.: Commodity continued momentum due to improved foodservice demand; strong QSR and retail deli demand; however, labor tightness impacting product mix; Mexico: YOY decrease in profitability due to very strong Q4 2020; however, balanced supply/d
Slide 16: Fiscal Year 2021 Financial Review
To be the BEST Fiscal Year 2021 Financial Review U.S.: Commodity strength due to improved foodservice demand; strong QSR and retail deli demand; however, labor tightness impacting product mix; Mexico: Strong year due to balanced supply/demand conditions; UK/Europe: Higher feed costs, lower pig pri
Slide 17: Fiscal Year 2021 Capital Spending
To be the BEST Fiscal Year 2021 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 emphasiz
Slide 18: Appendix
APPENDIX pilgrims To be the BEST 18
Slide 19: Reconciliation of Adjusted EBITDA
To be the BEST Appendix: Reconciliation of Adjusted EBITDA 19 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
Slide 20: Reconciliation of Adjusted EBITDA
To be the BEST Appendix: Reconciliation of Adjusted EBITDA 20Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Year Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 (In thousands) Net income $ 36,468 $ 330 $ 31,268 $
Slide 21: Reconciliation of LTM Adjusted EBITDA
To be the BEST Appendix: Reconciliation of LTM Adjusted EBITDA 21 The summary unaudited consolidated income statement data for the twelve months ended December 26, 2021 (the LTM Period) have been calculated by summing each of the unaudited three month periods within the audited year ended December 2
Slide 22: Reconciliation of EBITDA Margin
To be the BEST Appendix: Reconciliation of EBITDA Margin 22 EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used
Slide 23: Reconciliation of Adjusted EBITDA by Segment
To be the BEST Appendix: Reconciliation of Adjusted EBITDA by Segment 23Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended December 26, 2021 December 27, 2020 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total (In
Slide 24: Reconciliation of Adjusted EBITDA by Segment
To be the BEST Appendix: Reconciliation of Adjusted EBITDA by Segment 24Source: PPC PILGRIM'S PRIDE CORPORATION Reconciliation of Adjusted EBITDA (Unaudited) Year Ended Year Ended December 26, 2021 December 27, 2020 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total (In thousands) (In t
Slide 25: Reconciliation of Adjusted Operating Income
To be the BEST Appendix: Reconciliation of Adjusted Operating Income 25Source: PPC Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating I
Slide 26: Reconciliation of Adjusted Operating Income
To be the BEST Appendix: Reconciliation of Adjusted Operating Income 26Source: PPC Adjusted Operating Income Margin for the U.S. is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental in
Slide 27: Reconciliation of GAAP EPS to Adjusted EPS
To be the BEST Appendix: Reconciliation of GAAP EPS to Adjusted EPS 27 Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental informatio
Slide 28: Reconciliation of GAAP EPS to Adjusted EPS
To be the BEST Appendix: Reconciliation of GAAP EPS to Adjusted EPS 28 Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental informatio
Slide 29: Supplementary Selected Segment and Geographic Data
To be the BEST Appendix: Supplementary Selected Segment and Geographic Data 29Source: PPC PILGRIM'S PRIDE CORPORATION Supplementary Geographic Data (Unaudited) Three Months Ended Year Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 (In thousands) Sources of net sales by