Slide 1: Proven Performance, Poised for Growth
Proven Performance, Poised for Growth Analyst / Investor Day February 7, 2006
Slide 2: Proven Performance, Poised for Growth - Investor Relations
Proven Performance, Poised for Growth Kathy M. Costner Vice President, Investor Relations February 7, 2006
Slide 3: Cautionary Notes and Forward-Looking Statements
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 Pride Corporation and its management, including any earnings guidance for fiscal 2006, are forwart
Slide 4: Management Team Presenting
Management Team Presenting @ Lonnie “Bo” Pilgrim Co-Founder and Chairman O.B. Goolsby, Jr. Richard A. Cogdill J. Clinton Rivers Gary Treat Robert Wright President and Chief Executive Officer Chief Financial Officer Chief Operating Officer Senior Vice President, Food Safety and Quality Assurance Exec
Slide 5: Lonnie "Bo" Pilgrim, Co-Founder and Chairman
Proven Performance, Poised for Growth Lonnie “Bo” Pilgrim Co-Founder and Chairman:
Slide 6: President & Chief Executive Officer
Ys Proven Performance, Poised for Growth President & Chief Executive Officer February 7, 2006
Slide 7: Pilgrim's Pride Vision and Mission
Pilgrim’s Pride Our Vision: To be a world-class food company... better than the best. Our Mission: Our job is outstanding customer Satisfaction...every day!
Slide 8: Chicken products
CHICKEN PIERCE SUPE oy WING=DINGS | TRU-narusH EGcsPLvs
Slide 9: Pilgrim's Pride at a Glance
Pilgrim’s Pride at a Glance Second largest chicken producer in US and Mexico Market capitalization of approx $1.7 billion Record net income of $265 million, or $3.98 per share, in FY2005 Award-winning preferred supplier to foodservice and retail industry leaders Approx 45% of LTM 12/31/05 US chicken
Slide 10: Solid Leadership Position
Solid Leadership Position hicken Market 2004 Geographic Company Market Share (%) Reach Tyson Foods, Ine 23.2 National Pilgrim's Pride 154 National Gold Kist, Inc 89 Regional Perdue Farms, Inc 74 Regional Sanderson Farms, Inc 40 Regional Wayne Farms, LLC 38 Regional Foster Farms 33 Regional Mountaire
Slide 11: Sales and U.S. Chicken Sales
Sales U.S. Chicken Sales U.S. Chicken Fresh Chicken Other Mexico Total Sales LTM 12/3105: Total Sales LTM 12/3105: $5,666.3 mm $4,411.3mm
Slide 12: Powerful Earnings Growth Strategy
Powerful Earnings Growth Strategy = Driving growth in value-added Prepared Foods — Well-positioned to capitalize on favorable consumption trends — Aleading supplier to quick service restaurants — Expanding presence in broadline food service distribution = Adding new accounts through expanded nationa
Slide 13: Transformations Achieved Over Last Two Years
Transformations Achieved Over Last Two Years = Strengthened competitive position — Reinforced fast-growing, higher-margin product mix - Significantly increased size and scale - Enhanced technological leadership and cost-efficiencies m= Expanded and enhanced brand portfolio - Pierce®, Country Pride®,
Slide 14: Expanded North American Footprint
Expanded North American Footprint
Slide 15: How We Do It
How We Do It ) = Strategic Synergy Teams — Joint transition team of senior executives e Production e Sales and marketing e Supply chain / purchasing — Function specific sub- teams e Human resources e Finance e Information technology = $125 million of annualized synergies realized in FY2005 = All ope
Slide 16: Turkey Restructuring Milestones
‘Turkey Restructuring Milestones = April 2004: Announced plans to restructure turkey business with new focus on value-added turkey products m April 2004: Introduced Signature Turkey line — a premium line of butter-basted turkey products m= September 2004: Sold commodity turkey production facility in
Slide 17: Mexico Strategy
Mexico Strategy Capitalize on significant growth opportunities through continued emphasis on: = Being a low-cost producer = Strengthening presence in center of country = Expanding distribution beyond our current capabilities in 26 out of 32 states = Significantly improving service 7
Slide 18: Increasing Consumption in Mexico
Increasing Consumption in Mexico Mexico Per Capita Consumption (n Pounds) ; ast es
Slide 19: Trend Toward Consolidating Marketplace in Mexico
Trend Toward Consolidating Marketplace in Mexico ther Ton & En gti ms Pigrimi's Pride 1%
Slide 20: Outpacing Industry Growth
Outpacing Industry Growth 3 5 260% é % 200% 9 2 15.0% = Hy 2 10.0% : 33% : 50% . 2.9% 2 ox 2005 2000-2005 1995-2005 ME U.S. Chicken Industry H Pilgrim's Pride Pilgrim's Pride's successful business strategy has enabled it to dramatically outperform average industry growth levels Source: Rational Chis
Slide 21: US Chicken Consumption Outpacing Other Proteins
US Chicken Consumption Outpacing Other Proteins Per Gapita Gonsumption (In Pounds} Chicken 488.1% HT% 1980 1983 1986 1989 «1992 1995 19982001 = Chicken — Turkey — Pork — Beef Source: Januayy 17,2008 USDWétional Cisien Counc 2004 2007E
Slide 22: Worldwide Exports
ee & Worldwide Exports Represents top ten countries PPC exports leg quarters to by volume
Slide 23: Recent Developments in Export Market
Recent Developments in Export Market = Export shipments - 5% below prior year as of November 2005 - Expected to be flat in January and up 3% for 2006 by USDA = Cold storage as of December 2005 - Total chicken up 28% over December 2004 - Total chicken up 5% over November 2005 — Leg quarters up 131% o
Slide 24: % Broiler Volume Exported
20 % broiler volume exported o- Ge FEEL EL IEP IEE EELS gf Export expansion complements U.S. business, provides strong market for dark meat and assists in stabilizing market pricing Source: January 17,2006 Nona! Chicken Councl
Slide 25: Unparalleled Management Expertise and Commitment
Unparalleled Management Expertise and Commitment Name Lonnie "Bo" Pilgrim Clifford E, Butler 0.8. Goolsby, wr Richard A. Cagail 4 Clinton Rivers Robert Wright Gary Treat Title Chairman of the Board Vice Chairman of the Board President, Chief Executive Officer and Director Chief Financial Officer, Se
Slide 26: Our Unique Culture Breeds Success
Our Unique Culture Breeds Success = Our collective pursuit of Continuous Improvement (Cl) creates an empowering environment where all partners (employees) can excel = Clis our guiding management philosophy — “It's not the person...it’s the process.” = Based on three cornerstones: — Quality — Process
Slide 27: Putting Our People First
Putting Our People First Living by the Golden Rule m We create an environment where people are treated well and feel they are vested in our process = We invest more in training and improving our people than anyone else in the industry — Reimburse continuing education for all partners m= Open door co
Slide 28: Our Partners Reach a Milestone
Our Partners Reach a Milestone m@ Our Lufkin, TX facility celebrated 5 million work hours without a lost-time injury — Total commitment of plant management — Cooperation of each employee = Safety program at Lufkin is successful due to ongoing efforts by safety committees, safety monitors and the com
Slide 29: Proven Performance, Poised for Growth
Proven Performance, Poised for Growth m= Capable management team — Business strategy — Clarity of vision (e.g. strategic goals) = Capital structure — Strong balance sheet e NYSE listed (66.5 million shares) e Growth oriented and value-added stock m Vertically integrated — Largest pure-play company i
Slide 30: Building Shareholder Value Through Prudent Financial Management
Proven Performance, Poised for Growth e Ae FS -f Building Shareholder Value Through f Prudent Financial Management Chief Financial Officer Februaty 7, 2006
Slide 31: Pilgrim's Pride Today
Pilgrim’s Pride Today m Largest pure-play chicken producer in the US (#2 overall) — Scale, product offering and national distribution capability — One of only two US producers capable of supplying largest customers nationwide m Focus on prepared foods drives sustainable growth and leads to greater s
Slide 32: Pilgrim's Pride Today (cont'd)
Pilgrim’s Pride Today (cont'd) = Improved industry fundamentals - Consolidation has led to more rational behavior among industry players; top 3 players control over 50% of market - Evidenced by controlled supply growth and improved industry profitability, especially over last five years m= Operation
Slide 33: Sales Segments
Sales Segments Summary Operating Results - ina LIM LIM % FY2006 Fy2005 % 12/31/05 4/01/05 Change Quarter! _Quarter1_ Change Chicken Sales. United States $44106 $4 382.6 06% $1,034.2 $1,0349 01% Mexico 3988 3704 17% 924 96.9 46% Total Chicken Sales $4094 $4,753.0 12% $1,1266 $1,1318 05% Total Turkey
Slide 34: Summary Operating Income
Summary Operatin' Operating Income Ginmilions) Operating Income (Loss): Chicken and Other Products: United States Mexico Sub Total Turkey Other Products: United States Mexico Sub Total GAAP Operating Income Operating Margin Turkey Restructuring & non-recurring items Adjusted Operating Income Operati
Slide 35: Strong Balance Sheet
Strong Balance Sheet (Bin milions) $2,400 $2,246 $1,600 $1,200 $800 54 $630 $400 $0 2008 2005 10 FYO6 WAsses eShort-TermLiabiliies mLong-TermLiabiliies Equity
Slide 36: Well-Capitalized
Well-Capitalized Cash and Cash Equivalents Senior Secured Credit Facilities Notes Payable to Ins. Company 91578% Senior Notes due 2011 914% Senior Sub. Notes due 2013 Other Debt Total Debt Total Stockholders’ Equity Total Capitalization ‘1st Qtr ot % of %of tozi04 1012004 or0s tons =| 129105 120105
Slide 37: Debt Maturity Profile
Debt Maturity Profile = Nonear-term debt maturity provides further credit protection and liquidity for Pilgrim's Pride swe = Annual interest expense of ~$44 million 1547 ees ear tes siooo ee esta a On nic) Sm se a a ee ee LY iaBend mbtes Payetle hail Reverue Bend ob: oterseatenii arate es pane aiyer
Slide 38: Credit Ratios Reflect Financial Strength
Credit Ratios Reflect Financial Strength FYE 2005 Q1 FY2005" Q1 FY2006~ EBITDA/InterestExpense (“) = 12.82x. 9.95x B86x Total Debt? EBITDA (“] Ost = 1.22x 1.00x Net Debt/ EBITDA (“) O70%x = 08x = OBI Total Debt/ Total Capital 301% = 355% 305% Net Debt/T tal Capital 244% = 272% 22.7% Net Worth (milli
Slide 39: Strong Gross Margin Percentage of Sales
Strong Gross Margin Percentage of Sales Fiseal Years Ended 200 oot 2m ote amma 2006 Lr reins
Slide 40: Operating Income
Operating Income Fiseal Years Ended (Bin mitions) 0 0 0 a0 a0 20 80 80 0 oT as 0 0 «00 2000 2001 L280
Slide 41: Interest Expense Percentage of Sales
Interest Expense Percentage of Sales Fiseal Years Ended me 10% 13% 18% 136 126 16 1086 ome oe ome oa ome ome ome ome OF reereeenpe ene neers trim tet ne en trite I one 2000 at se 2m08 Eo 20s 192008 10 206 ead! etg Aint
Slide 42: Prudent Management of Capital Expenditures
Prudent Management of Capital Expenditures Fiseal Years Ended MB Maintenance‘Other MMMM ExpansiorvEfficiency Gin milions) = ; 160 $1359 140 Pete gus $1166 120 — —j $92.1 $299 100 TT $004 $796 a lo (a | o 60 40 20 0 2000 2m 2002 2008 2004 2005 UTM 120408 The Company projects FY 2006 capital expenditu
Slide 43: Working Capital
Working Capital Fiseal Years Ended (Bin mitions) sa $405 400 ppaad $372 sasz 350 300 250 $211 2000 2001 002 2003 2o0a zs = 142005 19,2006
Slide 44: Protein / Agribusiness Industry Peer Comparisons
Protein / Agribusiness Industry Peer Comparisons wc ak OF SoG OM get EBITDA in miliore)
Slide 45: Impressive Financial Performance Recognized by Market
Impressive Financial Performance Recognized by Market Pilgrim’s Pride Share Price (as of 1119106) 8 stock Frise g25a2 | 00 66 207% | M000 na & gee ‘om aS28 som 3 Baa som E om ste om * 18 a ‘veo? 208 sans ewe ogeos 1605 nme Tans eNOS 1008 MEB\ouime Pints rid Cap. Pilgrim's Pride Senior and Senior Sub
Slide 46: Net Sales & Shareholder Equity Continue Upward Trend
Million $ 6000 5000 4000 3000 2000 Net Sales & Shareholder Equity Continue Upward Trend Compounded Annual Growth Rates Historical Thru FY2003 Thru FY2005 Sales 144% 16.8% Equity 19.0% 22.3% PEF PFSFESE SFI FE SII LO SG Taet Sales == Bocihotders faulty
Slide 47: Robust Stock Performance Has Driven Strong Shareholder Returns
Robust Stock Performance Has Driven Strong Shareholder Returns ‘ugust 21, 2003 Combinabon f Of Clams A ural Clam 8 Common Stork Amounced ‘Tine 8, 2003 GAG Chicken’ Division Arquisition ‘Announced, 6 ‘1217004 - 10 Million Shores 0 Novernber 24, 2003 ConAgra ye Chicken Division Azcuimition & Stock Com
Slide 48: Financial Goals Going Forward
Financial Goals Going Forward = Utilize free cash flow to fund internal growth = Continue reducing leverage with excess cash-flow = Selectively pursue expansion opportunities that generate high rates of return Commiited to creating shareholder value 48
Slide 49: Proven Performance, Poised for Growth
Proven Performance, Poised for Growth Analyst / Investor Day February 7, 2006
Slide 50: Driving Sustainable Growth Through Operational Excellence
Proven Performance, Poised for Growth Driving Sustainable Growth | Through Operational Excellence y Chief Operating Officer } February 7, 2006
Slide 51: Diversified Product Offering
Diversified Product Offering PILGRIM’S PRIDE Prepared Foods Value-added, futher processed chicken produ, Primarily seldte foodservice ustomers 45% of US Chicken Sales 34% of Total Sales Fresh Chicken 1 Non-rozan chicken sold primariyin pats to retail and foodservice customers 49% of US Chicken Sales
Slide 52: Key Operating Goals
"Key Operating Goals Focus on value-added prepared foods that deliver : , higher margins and mitigate impact of volatile | sustainable growth eornimaa tet ices Driving Aggressive logistics management, raw material sourcing and increased production capacity Continually evaluating strategic opportunit
Slide 53: Driving Sustainable Growth
Driving Sustainable Growth = Made major consolidating acquisitions in January 2001 and November 2003 — Acquired what were seventh largest poultry and fourth largest chicken companies, respectively, at time of transactions = Acquisition of non-integrated prepared foods operations — Waco, TX plant, 19
Slide 54: Poultry Processing Facilities
Poultry Processing Facilities 7; Key Producing States if — -
Slide 55: Prepared Foods Plants Drive Company Performance
Prepared Foods Plants Drive Company Performance @ Prepared Foods - Chicken ‘Acquired in October of 206: Prepared Foods - Chicken
Slide 56: North American Distribution Centers
oy North American Distribution Centers
Slide 57: Driving Operational Excellence: 2005 Accomplishments
7 Driving Operational Excellence: 2005 Accomplishments Broadway, VA — Conversion from Case Ready to Prepared Foods Athens, GA — High speed rail unloading Mount Pleasant, TX — TSM portioning Gainesville, GA — Check weight system Mayfield, KY — High speed eviscerating lines
Slide 58: Driving Operational Excellence: 2006 Projects
Driving Operational Excellence: 2006 Projects = Continue to invest in existing operating facilities to improve productivity and yield increase —- El Dorado, AR — Bossier City, LA — Mayfield, KY - Marshville, NC = Driving variable costs lower by optimizing product throughput — High speed rail unloadi
Slide 59: Prudent Management of Capital Expenditures
Prudent Management of Capital Expenditures Fiseal Years Ended ME Maintenance‘Other MMMM ExpansiorvEfticiency Gin milions) =] 160 $1359 140 Pete gus $1166 120 —Fz —= $92.1 $299 100 TT $004 $796 en oo [so | —sz o 60 40 20 0 2000 2m 2002 2008 2004 2005 UTM 120408 The Company projects FY 2006 capital ex
Slide 60: Delivering Shareholder Value
Delivering Shareholder Value = Operational performance has generated strong financial results m= One of only two US producers with ability to supply largest customers = Continued focus on value-added products — Drives higher margin growth — Diminishes impact of down swings in commodity cycle — Incre
Slide 61: Significantly Enhanced US Footprint
Significantly Enhanced US Footprint Improved distribution capab ies = Well-established relationships with broadline national distributors = Direct distribution channels to retail, restaurant and foodservice customers nationwide = One-stop source for broad range of standard and specialty chicken prod
Slide 62: Leading Through Innovation
Leading Through Innovation Technological Advancements = TSM - Breast Fillet Portioning Equipment — Provides improved length and width consistency vs. hand portioned fillets = State-of-the-art freezer — Pittsburg, TX — 125,000 sq ft of storage — Fully automated = Further Processing Facility - Waco, T
Slide 63: Prepared Foods Plant
Prepared Foods Plant @
Slide 64: Continuous Improvement (CI)
‘Continuous Improvement (Cl) = Guiding management philosophy and the way we choose to do business m Empowers partners to identify, quantify and eliminate waste by examining each and every one of their processes on a daily basis m Creates leaders who are customer focused and manage variation within p
Slide 65: Maintaining Our Leadership in a Consolidating Industry
6 Maintaining Our Leadership in a Consolidating Industry Well-positioned as #2 producer in industry A leading supplier of quick-service restaurants Growing presence in broadline distribution Strong position in retail Disciplined approach to strategic acquisition opportunities
Slide 66: Ensuring Food Safety, Delivering Superior Products and Services
Proven Performance, Poised for Growth Se Ww FS Ensuring Food Safety Delivering Superior Products and Services to Customers Senior V.P., Quality Assurance & Food Safety February 7, 2006
Slide 67: Food Safety is Our Number One Priority
Food Safety is Our Number One Priority Goal: — Provide safe, nutritious, healthy and affordable products for consumers
Slide 68: Leading the Industry in Food Safety Initiatives
Leading the Industry in Food Safety Initiatives = Active and successful microbiological survey and testing regiment for all “Ready-to-Eat” production facilities — Initiated prior to USDA directives for microbiological control = Well below USDA regulated standard for Salmonella — Average results acro
Slide 69: Hazard Analysis and Critical Control Points (HACCP)
Hazard Analysis and Critical Control Points (HACCP) = Hazard Analysis and Critical Control Points (HACCP) — Initiated in 1989, approx 10 years ahead of USDA mandate — Developed by NASA — Identify potential hazards — Set up critical control points — Monitor other quality control points (attributes) 6
Slide 70: Interactive Audit System
Interactive Audit System Home Page Customer specific audit links m0
Slide 71: Interactive Audit System
Interactive Audit System
Slide 72: Interactive Customer Audit System
rR Interactive Customer Audit System
Slide 73: Our Results Speak for Themselves
Our Results Speak for Themselves m In 2005, our customers presented us with awards for: — Distinguished Supplier — Vendor Partnership — Quality Supplier of the Year — Outstanding Vendor of the Year — Poultry Supplier of the Year — Quality Systems Audit Award
Slide 74: Quality Assurance & The 14 Points of Continuous Improvement
74 Constancy of purpose Adopt a new style of management Cease dependence on inspection Avoid doing business on. price tag alone Continuous improvement of processes Training and re-training Improvement of leadership Quality Assurance & The 14 Points of Continuous Improvement Drive out fear Department
Slide 75: Rigorous Survey and Testing Program
Rigorous Survey and Testing Program = Maintaining consistency in quality attributes is a shared responsibility — Quality Control Measures + Specs and audits Shape Length Width Percent breading Net weight Organoleptic testing 5
Slide 76: Key Safety and Quality Assurance Tools
Key Safety and Quality Assurance Tools = Shop Floor Data Collection — Completed at Mt. Pleasant, Dallas and Elberton Prepared Foods facilities — Installed in Waco and Nacogdoches Prepared Foods facilities beginning in January — Data currently being posted on Internet for external customer review = R
Slide 77: Real-time statistical analysis screens
Daehn he feoraream Fowasnsm s} Some 3 72a eer go gens a ee a¢ ye 0 a ee g alo 2] NE ‘aloi>] ml Ores | Mas ae ee ors ores Creare were Pomered by Dundee Panes Pre Toney weve ty Dune Dt om [i27ne 12000m =] Te [rzrrstis9Pe x] Mewdt fy Pom [r2rrns 12000 =] Te [reeves tis5re =) [Rioonossort weit i pana al
Slide 78: Leading-Edge Technology
Leading-Edge Technology Automated Bax - Bacteria Testing System = PCR (DNA linked) technology — Installed approx one year ahead of USDA incorporating this system in its regional labs Antimicrobials = Continued evaluation and utilization of antimicrobial systems for the processing of raw meat and rea
Slide 79: Initiatives to Prevent, Isolate and Contain Avian Influenza
Initiatives to Prevent, Isolate and Contain Avian Influenza Ongoing Company-wide Initiatives = Biosecurity — Basics e Only one avian species per farm e Birds raised inside houses e Only one age of bird on each farm e Allin/All out production cycles = Surveillance NCC program 100% testing n
Slide 80: Procedure
Procedure a0
Slide 81: Impact on the Environment
Slide 82: Avian Influenza (AI) Facts
Slide 83: Serious About Our Mission
Slide 84: Driving Value-Added Sales Growth
Slide 85: Long History of Top-Line Growth
Slide 86: Extensive Customer Recognition
Slide 87: Pilgrim's Continues to Make Headline News
Slide 88: National Coverage Across All Sales Channels
Slide 89: Sales Channels
Slide 90: Prepared Foods Growth and Focus is Our Competitive Differentiator
Slide 91: Prepared Foods Chicken Product Mix Focused on Highest-Value Products
Slide 92: National Accounts
Slide 93: Chicken Tender Salad
Slide 94: Grilled Chicken Caesar Salad
Slide 95: Foodservice Distributors Sales Strategy
Slide 96: Retail Channel Sales Strategies
Slide 97: Family of Products
Slide 98: Case Ready
Slide 99: EatWellStayHealthy
Slide 100: Fresh Foodservice Restaurants Sales Strategy
Slide 101: Chicken Wraps
Slide 102: Asian Chicken
Slide 103: Trusted Company, Trusted Brand
Slide 104: "Small Town" Commercial English Version
Slide 105: Hispanic Population Forecast
Slide 106: "Small Town" Commercial Spanish Version
Slide 107: Experienced R&D Team
Slide 108: Proven Performance, Poised for Growth
Slide 109: Proven Performance, Poised for Growth - Analyst / Investor Day
Slide 110: Appendix: Reconciliation of Non-GAAP Measures and Other Computations
Slide 111: Appendix A: Summary Credit Ratios and Other Information
Slide 112: Appendix B: Reconciliation - Adjusted LTM EBITDA
Slide 113: Appendix C: Reconciliation - Adjusted FY2005 EBITDA
Slide 114: Appendix D: Reconciliation - Adjusted LTM EBITDA
Slide 115: Appendix E: Reconciliation - EBITDA