Slide 1: Overview of 3rd Quarter of Fiscal 2005 vs Fiscal 2004
————— Pilgrim’s Pride Corporation Overview of 3 Quarter of Fiscal 2005 vs Fiscal 2004 July 25, 2005
Slide 2: Cautionary Notes and Forward-Looking Statements
ss Cautionary Notes and Forward-Looking Statements Staternents contained in this presentation that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note
Slide 3: U.S. Meat Supply Growth — Remains Nominal
Fe U.S. Meat Supply Growth — Remains Nominal (million Ibs.) % % % 2002 2003 Change 2004 Change 2005P Change Beef 27,090 26,234 3% 24,544 6% 24,729 1% Pork 19,664 19,945 1% 20,509 3% 20,743 1% Total Red Meat 46,754 46,179 1% 45,053 -2% 45472 1% Chicken 32,240 32,749 2% 34,063 4% 35,526 4% Turkey 5,66
Slide 4: Broiler Hatchery Supply Flock
es Broiler Hatchery Supply Flock 65 60 ss RA pd AAs . er! a ah 40 Million Hens s £ & £ s £ ee £ x Source: USDA & Informa Economics Projections » N cb 2 © LO LLM LY SS SF SS
Slide 5: Broiler Hatching Egg Flock
a Broiler Hatching Egg Flock thousand hens 58,500 58,000 —— 57,500 57,000 __—— a ie 56,500 | > An * 56,000 55,500 |— 55,000 54,500 54,000 << J A + 2003 2004 ~* 2005 Source: USDA and Informa Economics Projections
Slide 6: Broiler Slaughter per Processing Day
Broiler Slaughter per Processing Day 38 37 VA 36 haf, ) imam 2 a5 OSS Pima? rn ee a a oo 2 = 33 i ae ol ee June 2005 forward forecast st 31 30 —* 2003 —* 2004 2005 > 2006 Source: USDA and Informa Economics Projections
Slide 7: Broiler Average Live Weights
Broiler Average Live Weights -*- 2003 —* 2004 ~~ 2005 — 2006 Source: USDA and Informa Economics Projections
Slide 8: U.S. Per Capita Consumption (lbs.)
Fe U.S. Per Capita Consumption (Ibs.) % % % 2004 2005P Change 2006P. Change 2007P Change Beef 66.1 67.41 1.5% 68.2 1.6% 64.0 6.2% Pork 51.3 50.2 -2.1% 50.1 -0.2% 51.0 1.8% Total Red Meat W174 117.3 0.1% 118.3 0.9% 115.0 -2.8% Chicken 85.4 88.6 3.7% 90.1 1.7% 914 14% Turkey 17.0 16.5 -2.9% 16.3 -1.2%
Slide 9: Top US Chicken Export Markets
i Top US Chicken Export Markets 2001 2002 2003 2004 2005P Tbs “lbs. Tbs. “ibs. Tbs. Mibs Ibs %lbs. Tbs. “ibs. Russia “ 2,304 41.48% 1,821 31.67% 1,458 29.42% = 1,503 31.53% 1,728 31.74% Hong Kong 750 13.50% 608 12.66% 309 6.23% 226 4.74% 263 4.83% Mexico® 381 6.86% 327 6.81% 366 7.38% 429 9.00% 520
Slide 10: U.S. Industry Outlook
U.S. Industry Outlook =Pricing environment during (vs. prior year periods) : 3rd Qtr FY 05. 3rd Qtr YTD 05 =DarkMeat > +7.42% to $0.38/b. +0.16% to $0.32/b. = Wings > -22.88% to $0.85/b. -4.80% to $1.00/b. "BreastMeat > -36.48% to $1.45/b. -23.83% to $1.44Ab. = GA Dock > -2.35% to $0.74 Ab. +2.93% t
Slide 11: GA Dock Final Wt Avg (Monday)
ss GA Dock Final Wt Avg (Monday) J F M A M J J A s °o N D 2001 = 2002 —*- 2003 —— 2004 te 2005 —— 2006 Source: USDA and Informa Economics Projections 4
Slide 12: Broiler Cold Storage Inventories
Broiler Cold Storage Inventories 900 850 A 800 ers, 750 8 70 1S Vee i 5 SC & 650 4 A ee 2 600 a =~ 580 }— 500 400 1 1 7 + + 1 r r r Source: USDA and Informa Economics Projections 42
Slide 13: U.S. Industry Outlook - Continued
Fe U.S. Industry Outlook - Continued = Grain Market FY2005 Actuals: 3 Qtr FY0S 3 Qtr YTD FY05 Near-by Futures Near-by Futures vs. Prior Year Qtr vs. Prior Year YTD oO Corm* -25.4% to $2.28/bushel -20.4% to $2.21 /bushel O Soybean Meal* -30.7% to $207.90/ton -30.1% to $184.82/ton FY2006 Outlook: 2005
Slide 14: Earnings per Share
a Earnings per Share FY2005 FY2004 %Change Actuals 3rd Quarter $ 1.28 $ 0.15 753.3% 3rd Quarter Year to Date $ 286 $ 0.86 232.6% Proforma 3rd Quarter Year to Date $ 2.86 $ 1.01 183.2%
Slide 15: Earnings per Share
_ Earnings per Share excluding effects of turkey restructuring and other non-recurring items (see slides 38- 43) FY2005 FY2004 %Change Actuals 3rd Quarter $ 1.27 $ 0.75 69% 3rd Quarter Year to Date $ 2.70 $ 1.70 59% Pro Forma 3rd Quarter $ 1.27 $ 0.75 69% 3rd Quarter Year to Date $ 2.70 $ 1.85 46% R
Slide 16: Sales by Segment — Actual
a Sales by Segment — Actual (8 in millions) Total U.S. Chicken Total Mexico Chicken Total Chicken Sales Total Turkey Sales Sale of Other Products Total Net Sales 3rd Quarter 3rd Quarter YTD % FY2005 FY2004 Change FY2005 FY2004 %Change $1,133.4 $1,121.1 11% $3,248.7 $ 2,933.3 10.8% 114.4 90.7 26.1% 3
Slide 17: Sales by Segment — Quarter YTD Proforma
SS Sales by Segment — 3 Quarter YTD Proforma (8 in millions) Actual Proforma Adj. Proforma* FY 2005 FY2004 %Change FY 2004 %Change Total U.S. Chicken $ 3,248.7 $3,297.7 -1.5% $3,218.5 0.9% Total Mexico Chicken 302.2 268.6 12.5% 262.3 15.2% Total Chicken Sales $3,550.9 $3,566.3 -0.4% $ 3,480.8 2.0% T
Slide 18: Chicken Sales - Actual
a Chicken Sales - Actual in millions) 3rd Quarter 3rd Quarter YTD FY2005 FY2004 %Change FY2005 FY2004 %Change Prepared Foods: Foodservice $ 4036 $ 4317 6.5% $1,2173 $1,127.7 79% Retail 76.1 48.6 56.6% 206.4 157.2 31.3% Total Prepared Foods 479.7 480.3 0.1% 1,423.7 1,284.9 10.8% Fresh Chicken Foodser
Slide 19: Chicken Sales — 3rd Quarter YTD Proforma
_ Chicken Sales — 3rd Quarter YTD Proforma in millions) FY2005 FY2004 % FY2004" Actual Proforma Change Adj. Proforma _% Change United States Prepared Foods: Foodservice $ 1,217.3 $ 1,252.4 -2.8% $ 1,223.0 -0.5% Retail 206.4 170.0 21.4% 165.3 24.9% Total Prepared Foods 1,423.7 1,422.4 0.1% 1,388.3 2.
Slide 20: Summary Operating Results - Actual
— Summary Operating Results - Actual ($ In Millions) Three Months Ended Nine Months Ended 3Q FY05 3Q FY04 3Q FY05 3QFY04 Sales: Chicken and Other Products: United States 1,282.4 1,284.7 $ 3,711.2 $ 3,377.2 Mexico 120.1 97.0 317.8 286.4 Sub Total 1,402.5 1,381.7 $ 4,029.0 $ 3,663.6 Turkey 37.5 66.3 1
Slide 21: Summary Operating Results — 3rd Quarter YTD Proforma
Summary Operating Results — 3'¢ Quarter YTD Proforma Proforma Adj. Proforma* (8 in millions) Nine Months Ended Nine Months Ended BQ FYOS 3a FYOd BQFY0S 3a FYO4 Sales Chicken and Other Products United States $ 37112 $ 3,838.0 $ 3.7112 $ 3,743.8 Mexico 317.8 286.4 317.8 279.7 Sub Total $ 40290 $ 41244
Slide 22: Results from Operations — 3rd Quarter
a Results from Operations — 3% Quarter in millions, except per share figures) Actual FY2005 FY2004 %Change Net Sales $ 14400 $ 1,448.0 -0.6% Net Income $ 85.4 §$ 9.8 7714% EBITDA $ 165.8 §$ 65.5 153.1% EPS $ 1.28 $ 0.15 753.3% EBITDA Reconciliation Net Income $ 85.4 §$ 98 Add: Income Tax Expense 38.
Slide 23: Results from Operations — 3rd Quarter - Continued
Fe Results from Operations — 3'¢ Quarter - Continued ($ in millions, except per share figures) Actual FY2005 FY2004 — %Change EBITDA Reconciliation Net Income $ 854 $§$ 9.8 Add: Income Tax Expense 38.3 12.3 Interest expense, net 12.3 14.7 Depreciation and amortization 30.4 29.1 Minus: Amortization o
Slide 24: Results from Operations — 3rd Quarter YTD
a Results from Operations — 3rd Quarter YTD inion, except per share figures) Actual Proforma FY2005 FY2004 %Change FY2004 %Change Net Sales $4,183.6 $38773 79% $4,338.1 Net Income $ 1903 $ 53.0 259.1% $ 675 EBITDA $ 4206 $ 2146 96.0% $ 249.3 EPS $ 286 $ 086 232.6% $ 1.01 EBITDA Reconciliation Net In
Slide 25: Results from Operations — Continued
, eee Results from Operations — Continued (Sin millions, except per share figures) 3 Quarter YTD - Actual Proforma % % FY2005, FY2004 Change FY2004 Change EBITDA Reconciliation Net Income $ 19.3 $ 53.0 $ 67.5 Add: Income Tax Expense 103.9 A2 43.1 Interest expense, net 33.9 40.7 45.0 Depreciation and
Slide 26: Long Term Debt
Long Term Debt Fiscal Quarter Ending Fiscal Year Ending (Sin thousands) duty 2, 2005; Octaber 2, 2004 Final Facility Final Facility Maturity Outstanding Available Total Maturity Outstanding Available Total Senior unsecured notes, interest at 9 5/8% 2011 -«§ «302698 $ 30269 211 $ 303019 - $ 303,019 S
Slide 27: Other Credit Facilities
Other Credit Facilities Fiscal Quarter Ending Fiscal Year Ending (Sin thousands) July 2, 2005 October 2, 2004 Final Facility Final Facility Maturity Outstanding Available <i Maturity Outstanding Available a Domestic Revolving Credit Facility at UIBOR plus 0.875% 2008 $ - $ 115,482 $ 150,000 2008 $ 1
Slide 28: Summary Credit Ratios & Other Information
Fe Summary Credit Ratios & Other Information FYE 2004 392004 392005 9-MoFY04 9-MoFY05 EBITDA / Interest Expense 7.15x 4.24x 13.46x 5.28x 12.42x Total Debt / EBITDA (*) 1.46x - - 2.30x 0.92x Net Debt / EBITDA (*) 1.36x - - 2.16x 0.40x Total Debt / Total Capital 37.1% - - 414% 32.3% Net Debt / Total C
Slide 29: Summary Credit Ratios & Other Information — Continued
Summary Credit Ratios & Other Information — Continued EBITDA Reconciliation of FY2004 and LTM Periods EBITDA LT™ LT™ FY2004 Ending 7103104 ___ Ending 7/02/05 Net Income 128,340 $ 78,125 $ 265,541 Add: Income Tax Expense 80,195 26,031 149,944 Interest expense, net 62,129 49,804 45335 Depreciation and
Slide 30: Capital Expenditures
a Capital Expenditures 120 100 80 60 40 20 Million $ p | Mm Maintenance/Other MExpansion $109.8 $12.5 f $90.1 $83.6 $79.6 $8.9 I sis $13.6 $63.9 $59.9 [2 $8.8 $10.0 Aye $37.9 L $81.2 $70.0 $66.0 561 $19.9 $49.9 ' [ $4.2 $15.7 FYO4 FYO4 3Q FYO4 3Q FYO5 ‘9-Mo FYO4 ‘9-Mo FYO4 ‘9-Mo FYO5 LT™ Proforma Pr
Slide 31: Other Information
ss Other Information
Slide 32: Turkey Sales - Actual
SS Turkey Sales - Actual (Sin millions) 3rd Quarter 3rd Quarter YTD FY2005 FY2004 %Change FY2005 FY2004 %Change Prepared Foods: Foodservice $10.7 $ 18.9 -43.4% $ 533 $ 62.2 -14.3% Retail 9.7 11.5 -15.7% 27.0 27.4 -1.5% Total Prepared Foods 20.4 30.4 -32.9% 80.3 89.6 -10.4% Fresh Turkey Foodservice 1
Slide 33: Turkey Sales — Adjusted YTD
Fe Turkey Sales — Adjusted YTD (in millions) Prepared Foods: Foodservice Retail Total Prepared Foods Fresh Turkey Foodservice Retail Total Fresh Turkey Export and Other Prepared Foods Turkey Other Total Export and Other Total Turkey Sales *The first quarter of fiscal year 2004 contained 14 weeks as
Slide 34: Sales by Segment — 3rd Quarter YTD
Fe Sales by Segment — 3rd Quarter YTD Reconciliation of 2004 Adjusted Proforma (in millions) 1Q2004 1Q2004* 2Q2004 3Q2004 FY2004* Proforma Adj. Proforma Actual Actual Adj. Proforma Total U.S. Chicken $1,108.4 $1,029.2 $1 ,068.2 $1,121.1 $3,218.5 Total Mexico Chicken 88.9 82.6 89.0 90.7 262.3 Total C
Slide 35: Chicken Sales — 3rd Quarter Proforma YTD
_ Chicken Sales — 3rd Quarter Proforma YTD Reconciliation of 2004 Adjusted Proforma (8 in millions) 192004 192004" 202004 392004 FY2004* Proforma Adj. Proforma Actual Actual Adj. Proforma United States Prepared Foods: Foodserice $ 410.3 $ 381.0 $ 410.3 $ 4317 $ 1,223.0 Retail 654 60.7 56.0 48.6 165.
Slide 36: Summary Operating Results
i Summary Operating Results Reconciliation of 2004 Adjusted Proforma ($ in millions) 192004 12004 * 202004 32004 FY2004* Proforma Adj. Proforma Actual Actual Adj. Proforma Sales: Chicken and Other Products United States $ 1,318.3 $ 1,224.4 $ 1,235.0 $ 1,284.7 $ 3.7438 Mexico 93.5 86.9 95.8 97.0 279.
Slide 37: Turkey Sales — Adjusted YTD
a Turkey Sales — Adjusted YTD Reconciliation of 2004 Adjusted Proforma in millions) 1Q2004 1Q2004* 2Q2004 3Q2004 FY2004* Proforma Adj. Proforma Actual Actual Adj. Proforma Prepared Foods: Foodservice $ 26.0 $ 24.1 $ 17.4 $ 18.9 $ 60.4 Retail 8.2 7.6 7.7 11.5 26.8 Total Prepared Foods 34.2 31.7 25.1
Slide 38: Effects of turkey restructuring and other non-recurring items
_ Effects of turkey restructuring and other non-recurring items on the quarter ended July 2, 2005 ($ in thousands except per share figures) With turkey Remove turkey Without turkey restructuring & restructuring & restructuring & other non- other non- other non- recurring items _recurring items recur
Slide 39: Effects of turkey restructuring and other non-recurring items
_ Effects of turkey restructuring and other non-recurring items on the nine months July 2, 2005 ($in thousands except per share figures) With turkey Remove turkey Without turkey restructuring& restructuring& restructuring & other non- other non- other non- recurring items —recurringitems recurring i
Slide 40: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the quarter ended July 3, 2004 ($ in thousands except per share fiqures) With turkey Remove turkey hout turkey restructuring & restructuring & restructuring & other non- other non- other non- recurring items recurring items recurring i
Slide 41: Effects of turkey restructuring and other non-recurring items
_ Effects of turkey restructuring and other non-recurring items on the nine months July 3, 2004 (Sin thousands except for per share fiqures) With turkey Remove turkey Without turkey restructuring & restructuring & restructuring & other non- other non- other non- recurring items recurring items recur
Slide 42: Non-Recurring Items Affecting Fiscal 2005
Fe Non-Recurring Items Affecting Fiscal 2005 (in Millions) Three Months Ended July 2, 2005 Non-Recurring _Mscellaneous Net Total Income Expenses. Net Income (Loss) Turkey asset sales : : . $ os ¢ 08 Total Ss -OS : _ $08 $ 08 EPS Effect, net $ 001 $ 0.01 Nine Months Ended July 2, 2005 Non-Recurring _
Slide 43: Non-Recurring Items Affecting Fiscal 2004
es Non-Recurring Items Affecting Fiscal 2004 ($ in Millions) Three Months Ended July3, 2004 Non-Recurring _Miscellaneous Net Total Income Expenses Net income (Loss) Turkey Restructuring - - - $ ws 0) ¢ 0) Other Charges - Turkey 2 - - 9) 9) Total 3 = $ - z $ e 9) es 9) EPS Effect, net $ (0.60) (0.60)