Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q2 FY2006 Earnings Presentation
26 slides from Pilgrim's Pride's earnings presentation, May 2, 2006
Slide 1: Fiscal 2006 2nd Quarter Results
——————— Pilgrim’s Pride Corporation Fiscal 2006 2"4 Quarter Results May 2, 2006
Slide 2: Cautionary Notes And Forward-Looking Statements
7 Cautionary Notes And Forward-Looking Statements = Staternents contained herein that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Palon’s Pride Corporation and its management are forwarslooking statements. is important jo note that the actual res
Slide 3: U.S. Meat Supply Growth — Remains Nominal
—_———— U.S. Meat Supply Growth — Remains Nominal (rion Ibs) % % % % 2002 2003 Change _2004 Change _2005 Change 2006P_Changi Beef 27090 «28234 «3% «= «245A BH «BID 1% «= 25952 5% Pork 19664 19945 1% 20509 3% 20885 1% 21170 2% Total Red Meat 46754 = 4B79 1% «= 45053 -2% «= ABT. 1% = A722. 4% Chicken 3
Slide 4: U.S. Per Capita Consumption (lbs.)
SM U.S. Per Capita Consumption (Ibs.) % % % 2004 2005P_ Change — 2006P Change —2007P_—Change Beef 664 655 -09% 667 18% 640 4.0% Pork 513 50.0 -25% 504 0.8% 50.0 0.8% Total Red Meat = 1174 1166 18% 74 14% 114.0 2.8% Chicken 854 874 2.0% 89.0 2.2%) 90.3 1.5% Turkey 17.0 16.7 “18% 16.2 -3.0% 16.3 0.6%
Slide 5: Top U.S. Chicken Export Markets
7 Top U.S. Chicken Export Markets 20 203 2004 2005 2005 be lbs Tbs elibs ibs lbs be ibs Tbs lbs. 521 31.67% 1465 29.56% 1570 28% 11635 31.79% B00 35.51% Rr 68% 5 7K 431 9.0% 10.14% 555 10.98% 73 10% 22 8% 36 (075% 28 4.08% 2 538% 43 1.00% S 13% 94 197% 18 3128% 220 4.39% 15-23% 48-29% 40-29% m2 1M%
Slide 6: Broiler Cold Storage Inventories
————— Broiler Cold Storage Inventories ‘1000 00 , 2 m0 F 00 [Apri 2008 forward forecast 400 J Fo oM A M J J A S$ O N OD 2003 2004 2005 32006 Source: USDA and Informa Economics Projections dated Ap 27, 2008
Slide 7: U.S. Industry Outlook
SM U.S. Industry Outlook = Pricing environment during (vs. prior year periods) : 2nd Qtr FYO6 2nd Or Vid May 1,206 Primary. + GADock ==> 82% to $0.69Ab. “4.4% to $0.71Ab 90188 + Leg Quarters > 30.8% to $0214b 9.6% to $0.27Ab 901.21. Other Wings > 16.0% to $097Ab “16.5% to $0.894b. 90181 fb + Breast
Slide 8: U.S. Industry Outlook - Continued
7 U.S. Industry Outlook - Continued = Grain Market FY2006 Actuals: 2-4 Qtr FYO6 ‘by Futures rior Ye itr vs. a Corn* a Soybean Meal” FY2006 Outlook: 2005-2006 Crop Year USDA Projections vs, 2™4 Qtr YTD FY0S a Corn* 4.9% to $1.95!bushel O Soybean Meal” 1.9% to $172.50lten * Excludes Freight and Basis
Slide 9: Energy Pricing
—_———— Energy Pricing Department of Energy - U.S. Energy Price : Medium Recovery Case 2005 2006 2007 ist_[ 2nd [| 3rd [ ath | tet [ 2nd [ 3rd [ ath | ast [ and | 3rd | ath Diesel" (S/aa) 207 2.26 256 271 250 265 259 260 248 242 240 247 Natural Gas" (Sirmch) 662 7.14 981 1264 7.94 752 785 895 9.16 7.
Slide 10: Results from Operations — 2nd Quarter
SM Results from Operations — 2" Quarter in milions,exxeptper share igures) EPS Net Sales Net Income EBITDA EBITDA Reconciliation Net Income Add Income Tax (Benefit) Expense Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing costs EBITDA - as reported EBI
Slide 11: Results from Operations — 2nd Quarter YTD
SM Results from Operations — 2.4 Quarter YTD in milions except pershare figures) EPS Net Sales Net Income EBITDA EBITDA Reconciliation Net Income Add Income Tax (Benefit) Expense Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing costs EBITDA- as reporte
Slide 12: Sales by Segment — Actual
SM Sales by Segment — Actual Gin milions) 2°4 Quarter 2° Quarter YTD Fy2006 _ FY2005 %Change — FY2006 FY2005 %Change Chicken United States $ 9852 $10908 3.7% $20194 $2,256 -6.0% Mexico 104.0 90.9 14.5% 196.4 187.8 4.6% Total Chicken Sales $10892 $1 1817 -78% $§22158 $23134 A2% Total Turkey Sales $ 1
Slide 13: Summary Operating Results — Actual
—_———— Summary Operating Results — Actual ( in millions) 2 Quarter 2 Quarter YTD FY2006 FY2005 Fy2006_ _ FY2005 Operating Income: Chicken United States $ @77) $ 824 $ 162 $ 1707 Mexico 18 89 (5.3) 14.4 Sub Total $ (359) $ 910 $ 109 $ 1848 Turkey (6.7) (55)* (124) (10.2) * Other Products United State
Slide 14: Long-Term Debt
SM Long — Term Debt Fiscal Quatter Ending Fiscal Year Encina (inthausends) ‘gril, 2008, October 1,205 Final Fecity Final Facity Maurity Outstanding Available Total Meturty Outstanciny _valakie Tote Seniorunsecwetinotes, interest at 956% "Oil ~$ 299872 - <§ BORD Wi $ sRsB - § W2Be Senior unsecured no
Slide 15: Other Credit Facilities
Other Credit Facilities Fieoal Quater Ending Fisoal Year Ending (Sin thousands) ‘Apri 4, 2008 otober 1, 2005 Final Facility Final Fact Maturty Outstanding Available 44), —=“Malurty Outstanding Available soe) Domastio Revoling Credit Facility atLIBOR plus 0.875% mS 3 117.875 § 16000 2009 3 116782 § 1
Slide 16: Summary Credit Ratios & Other Information
7 Summary Credit Ratios & Other Information Fy2005 ending ANOS 2QFYOS 2QFYO6 6.MoFYOS 6-Mo FYO6 EBITDA Interest Expense (“) 13.20% a7 1x 14.29% 0 183% 387x Adj. EBITDA/ Interest Exp.("“] 12. 82x 9.69x 12.56% 0 11.08% 387x Total Debt/ EBITDA (+) 094x Ss . 1.04x 1.25 Net Debt/EBITDA (“} O.70x ‘ : m O7
Slide 17: Summary Credit Ratios & Other Information — Continued
te Summary Credit Ratios & Other Information — Continued Lim um Fy2005 Ending 412105 Ending 4/106 Net Income 8 masa 8 mom 5S wares Ade Income Tac Expense e354 s38e8 ore Interest experce, net aa.982 a7 anes Depreciation and amortization e404 cd 16,104 Minus ‘Amortization of captalized francing costs
Slide 18: Capital Expenditures
tt Capital Expenditures ‘160 Wi Mainienance/Other Ml ExpansiontEfficiency 140 120 100 S745 80 $82.2 60 $28.0 so7 [RE 40 oo oe $37.4 $190 t) 20 FYOS 20 FYO6 GMoFYOS © 6-MoFYO6 2005 *The Company projects FY2006 capital expenditures of approximately $1 40 to $175 million LIM 47106 18
Slide 19: Other Information
i Other Information
Slide 20: Chicken Sales - Actual
7 Chicken Sales - Actual inmilions) Prepared Foods Foodservice Retail Total Prepared Foods Fresh Chicken Foodservice Retail Total Fresh Chicken Export and Other Prepared Foods Chicken Total Export Other Chicken By Products Total Export and Other Total U.S. Chicken Total Mexica Chicken Total Chicken
Slide 21: Turkey Sales - Actual
SM Turkey Sales - Actual in milions) 2" Quarter 2°° Quarter YTD Fy2006 FY2005 %Change Fy 2006 Fy2005 %Change Prepared Foods Foodservice $63 $175 039% $ 198 $ 426 -53.7% Retail 45 82 44.9% 12.4 17.3 -28.2% Total Prepared Foods 108 257 -57.9% 32.2 59.9 -46.3% Fresh Turkey Foodservice og 39 -75.1% 34 7
Slide 22: Reconciliation — Adjusted EBITDA
SM Reconciliation — Adjusted EBITDA 2QFY0s 2QFY06 6-Mo FYOS* 6-Mo FYO6 ~ Net Incame $ 56389 $(31,954) $104,098 $ (6,237) Add Income Tax Expense (benefit) 34204 (15,147) 86,604 (5,124) Interest expense, net gate 10,057 21,542 18,505 Depreciation and amortization 3a777 (34,744 63,842 86,092 Minus Amor
Slide 23: Reconciliation — Adjusted LTM EBITDA
7 Reconciliation — Adjusted LTM EBITDA aceon4 §=sqmo4 §=1cz005 | 2cR00s L™ Actual Actual, «Actual, «= Actual Ending 4/206 Net Incorre $ 9814 $75,200 $4a509 $ 56,289 $ 190,002 Add Income Tax Expense (benefit) 12288 «48016 31,400 34204 123,883 Interest expense, net 14690 11471—12,224 gate 47,703 Depre
Slide 24: Reconciliation — Adjusted FY2005 EBITDA
7 Reconciliation — Adjusted FY2005 EBITDA 1azo0s §2qz00s [202005] saz00s saz005 § —FY2005 Actual __Actual_ | _YTD* | _Actual___Actual Actual Net Income $48609 §$66389 | $104e98) $ 85852 $ 74729 § 264979 Add: Income Tax Expense (oenefit) a1a00 34.204 | 65604) 38824 «84816 138 644 Interest expense net
Slide 25: Reconciliation — Adjusted LTM EBITDA
SM Reconciliation — Adjusted LTM EBITDA Net Income Add. Income Tax Expense (benefit) Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing costs EBITDA Adjustments: Turkey Restructuring Adjusted EBITDA, 302005 402005 192006 = 202006 L™ Actual Actual —_Actua
Slide 26: Reconciliation — EBITDA YTD Actual
te Reconciliation — EBITDA YTD Actual 192006 © 202006 202006 Actual Actual YTD Net Income $ 26,617 $ (31,954) $ (5,337) Add Income Tax Expense (benefit) 10,023 (15,147) (6.124) Interest expense, net 8,448 10,057 18,505 Depreciation and amortization 30,348 34,744 65,092 Minus: Amortization of capital