Slide 1: Fiscal 2006 4th Quarter & Year-End Results
Pilgrim’s Pride Corporation Fiscal 2006 4 Quarter & Year-End Results November 14, 2006
Slide 2: Cautionary Notes And Forward-Looking Statements
Cautionary Notes And Forward—Looking Statements Statements contained in this presentation that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management, including any as to changes in pricing, demand and m
Slide 3: U.S. Chicken Consumption
U.S. Chicken Consumption Sourme: Oetober 2008 National Gin Counc Cold Storage Inventories eeeeeeeee EGP SOUOTURAIIESIEOLEES Egg Sets as 210 25 200 195, a Sourwe: USER, Iona Evan ie. ‘bte: Pediod data for October 2008 - Dece arber 2006 projected! by infoma wie anak STB aM TaNaGE Source: Aitanal Agric
Slide 4: Industry Response to Challenges in Operating Environment
Industry Response to Challenges in Operating Environment Weekly Broiler Slaughtered Pullets Placed 150% (o-y growth) hom 80% (Month rong average y-o¥ arowh) 3.0% pa on%) 24%) 0.3% 03% 6.0%) (10.0%) O1/07/08 02/26/08 O4i18/08 DEMNR/D6 O722NE gV0e 192808 Jam06 Feb-06 Mar.05 Apr06 May-05 Jun06 Juk06 Au
Slide 5: Boneless Skinless Breast Meat
Boneless Skinless Breast Mest (gb) UrnerBarry Market Pricing [Breast Mest Leg Quarters 18 a 098 ose 14 oz 42 a LEP PP EECE PEPE EE Source: UB Publications, Mid-West Boneless Skinless Breast Meat Tender Out UB Publications, Mic- West Leg Quarters (Bulk) thru 11/1306 Leg Quarters (ea) Corn Near-by Fut
Slide 6: Chicken Export Markets
Chicken Export Markets US Exports 2004 Russia, 4570 Russia, 168 Mevioo, 434 es US Exports 2005 Russia, 1,738 Mexico, £22 US Exports 2006 Meico, 521° china, a2” Projections china, 208 cna, oa Pavan, 104 6 Taven, 28 nae wa sage % of US Production: 14.04% % of US Production: 14.72% % of US Production:
Slide 7: Pricing a Challenge in Recent Months
Pricing a Challenge in Recent Months Pricing environment during (vs. prior year periods) : 4th Qtr FY 06* 4th Qtr Ytd* 11/13/06 vs. 09/30/06 Primary: " GADock > -6.1% to $0.70/b. -§.8% to $0.70/b. -1.8% to $0.69/1b. * Leg Quarters > -21.1% to $0.36/b. -19.7% to $0.29/lb. 0.0% to $0.29/b. Other: " Wi
Slide 8: Feed Ingredient Outlook
Feed Ingredient Outlook = Grain Market FY2006 Actuals: 4% Qtr FY06 4% Qtr YTD FY06 Near-by Futures Near-by Futures vs. Prior Year Qtr vs. Prior Year YTD Com* +7.6% to $2.42/bushel +5.9% to $2.32/bushel Soybean Meal* 18.6% to $166.20/ton 4.3% to $175.56/ton FY2007 Outlook: 2006-2007 Crop Year USDA Pr
Slide 9: Feed Ingredient Prices Affected by Speculation
Sa ye Feed Ingredient Prices Affected by Speculation ‘Com Near-by Futures vs. USDA Projections SBOM Near-by Futures vs. USDA Projections ——2005 —2— 2006 --------- USDA Projected Range --- USDA Projected Range 2005 —»— 2006 --- Large Speculative Net Futures & Options Increasing Speculative Net Future
Slide 10: Energy Prices: Diesel and Natural Gas
sas soe a Retail Diesel Spat Price —%e Change * Source: Energy Information Administration 4th Qtr 2006 ‘1st Qtr 2007 2nd Qtr 2007 ‘3rd Qtr 2007 4th Qtr 2007 Estimated Pricing Natual gas and diesel decline versus prior year 4th quarter Diesel 6.7% Natural Gas 42.4% Natural Gas and Diesel increase ver
Slide 11: Actuals
ie i] Actuals 4th Quarter Fiscal Year Adjusted * 4th Quarter Fiscal Year FY2006 FY2005 %Change $ (0.11) $ 1.12 -109.8% $ (051) $ 3.98 -112.8% $ 028 $ 1.12 -75.0% $ (0.12) $ 3.82 -103.1% *FY2006 4th quarter and fiscal year adjusted to exclude taxes related to the repatriation of earings pursuant to t
Slide 12: Results from Operations - Fourth Quarter
(inmilions, except per share figures) EPS Net Sales Net (Loss) Income EBITDA EBITDA Reconciliation Net {Loss} Income Add: Income Tax (Benefit) Expense Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing costs EBITDA - as reported EBITDA Margin - as report
Slide 13: EBITDA Reconciliation - Quarter
G inmilions) Actual Fy2006 FY2005 %Change EBITDA Reconciliation Net Income $ (5) $ 747 Add: Income Tax Expense 19.6 34.6 Interest expense, net 10.6 10.1 Depreciation and amortization 35.1 407 Minus: Amortization of capitalized financing costs 06 0.6 EBITDA - as reported $ S72 $ 159.5 “64.1% EBITDA M
Slide 14: Results from Operations - Fiscal Year
> je Results from Operations — Fiscal Year (in millions, except per share figures) EPS Net Sales Net (Loss) Income EBITDA EBITDA Reconciliation Net (Loss) Income Add: Income Tax (Benefit) Expense Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing costs E
Slide 15: EBITDA Reconciliation - Fiscal Year
in millions) Actual FY2006 FY2005 % Change EBITDA Reconciliation Net Income $ 4.2) ¢ 265.0 Add: Income Tax Expense (2.1) 138.6 Interest expense, net 40.6 43.9 Depreciation and amortization 135.1 134.9 Minus: Amortization of capitalized financing costs 2.6 2.3 EBITDA - as reported $ 1368 $ 580.1 764%
Slide 16: Sales by Segment - Actual
Sales by Segment — Actual inmilons) 4 Quarter Fiscal Year Ended Fy2006 FY2005 %Change — FY2006 FY2005 %Change Chicken: United States $1059.1 $1,1625 89% $40984 $44112 -TA% Mexico 115.3 101.2 14.0% 4187 4034 3.8% Total Chicken Sales $11744 $1,2637 W1% = $45171 $48146 6.2% Total Turkey Sales $ 361 $ 5
Slide 17: Summary Operating Results
Summary Operating Results (8 in millions) Operating Income (Loss): Chicken: United States Mexico Sub Total Turkey Other Products: United States Mexico Sub Total GAAP Operating Income Operating Margin 4" quarter Fiscal Year Ended FY2006 FY2005 FY2006 FY2005 $ 32.6 $ 1138 $ 28.7 $ 405.7 (7.8) 79 (18.0
Slide 18: Summary Operating Results - Continued
Summary Operating Results - Continued ($ In Millions) 4" quarter Fiscal Year Ended Fy2006 FY2005 Fy2006 FY2005 Operating Income {Loss}: Chicken: United States $ 326 $1138 $ 28.7 $ 405.7 Mexico (7.8) 79 (18.0) 39.8 ‘Sub Total $ 248 $1217 $ 10.7 $ 445.5 Turkey 04 (6.9) (15.5) (22.5) Other Products: Un
Slide 19: Long-Term Debt
Long—Term Debt @ inthousands) Senior unsecured notes, interest at 9 5/8% Senior unsecured notes, interest at 9 14% Note prayable to an insurance company at 668% Notes payable to an insurance company at LIBOR plus 2.2075% Revolving termn/credit facility at LIBOR plus 1.00% Mexico revolving credit fac
Slide 20: Other Credit Facilities
Other Credit Facilities (§ in thousands} September 30, 2006 October 1, 2005 Final Facility Final Facility Maturity Outstanding Available Toe Maturity Outstanding Available Tate Dornestic Revolving Credit Facility at LIBOR plus 0.875% 2009 4g - § 126645 § 160000 2009 § - § 115782 § 150,000 Dornestic
Slide 21: Capital Expenditures
Capital Expenditures Gin millions) 160, $143.9 HH Maintenance/Other ExpansioniEfficiency cy y 140, $116.6 120; 100; $79.6 80; 60} $42.6 $26.4 40; ae a $11.7 farms 4Q FYO6 FY 2004 FY 2005 FY 2006 24 * See Appendix H
Slide 22: Summary Credit Ratios & Other Information
FY2005 4QFY05 4QFY06 FY2006 EBITDA! Interest Expense (*) 13.20% 15.84 5.41x 3.37x Adj. EBITDA / Interest Exp. ("") 12.82x 15.84% 6.01x 3.53x Total Debt / EBITDA 0.91x . : 4.13X Net Debt/ EBITDA 0.68x . . 2.99x Total Debt / Total Capital 30.1% 7 - 33.6% Net Debt/ Total Capital 24.4% = a 26.8% Net Wor
Slide 23: FY2005 and FY2006 EBITDA Reconciliations
Sg Continued FY2005 and FY2006 EBITDA Reconciliations Le Summary Credit Ratios & Other Information — Fy2005 Fy2006 Q4 FY2006 Net Income $ 24979 $34,282) $7,483) Ad Income Tax Expense 138,544 (2,085) 19,601 Interest expense, net 43,932 40,563 10,579 Depreciation and amortization 134,944 136,133 35,08
Slide 24: Reconciliation of Non-GAAP Measures and Other Computations
Reconciliation of Non-GAAP Measures and Other Computations 24
Slide 25: Appendix A: Chicken Sales - Actual
Appendix A Chicken Sales — Actual Gin ilfons) Prepared Foods: Foodservice Retail Total Prepared Foods Fresh Chicken Foodservice Retail Total Fresh Chicken Export and Other Prepared Foods Chicken Total Export Other Chicken ByProducts Total Export and Other Total U.S. Chicken Total Mexico Chicken Tota
Slide 26: Appendix B: Turkey Sales - Actual
Appendix B Turkey Sales — Actual Gin millions) 4th Quarter Fiscal Year FY2006 FY2005 %Change FY2006 FY2005 %Change Prepared Foods: Foodservice $05 $ 79 93.7% $ 210 $ 612 -65.6% Retail 03 10.6 -96.9% 13.0 377 -65.6% Total Prepared Foods 08 18.5 -95.5% 34.0 98.9 -65.6% Fresh Turkey Foodservice 43 38 1
Slide 27: Appendix C: 4th Qtr FY2006 Adjusted EPS Reconciliation
4 Appendix C “_ Reconciliation — 4th Qtr. FY2006 Adjusted Earnings Per Share (S$ in thousands except per share figures) Withrepatriation © Remove repatriation Without repatriation tax effects tax effects tax effects Net Sales $ 1,338,398 § - $ 1,338,398 Costs and Expenses: Cost of sales 1,239,095 :
Slide 28: Appendix D: FY2006 Adjusted EPS Reconciliation
(S inthousands except per share figures) Net Sales Costs and Expenses: Cost of sales Selling, general and administrative Operating income Other Expense (Income): Interest expense, net Foreign exchange gain Miscellaneous, net Income before income taxes Income tax expense Net income Net income per com
Slide 29: Appendix E: FY2005 Adjusted EPS Reconciliation
Appendix E > Reconciliation - FY2005 Adjusted Earnings Per Share (§ in thousands except per share figures) With turkey Remave turkey Without turkey restructuring & restructuring & restructuring & other non-recurring other non- other nen- items recurring items recurring items Net Sales $ 5666275 § -
Slide 30: Appendix F: FY2006 EBITDA Reconciliation
Appendix F Reconciliation — FY2006 EBITDA Net Income (Loss) Add Income Tax Expense (benefit) Interest expense, net Depreciation and amortization Minus Amortization of capitalized financing costs EBITDA Adjustments Accounting adjustments related to benefit plans Adjusted EBITDA 1q2006 = 202006 302006
Slide 31: Appendix H: FY2006 Capital Expenditures Reconciliation
Maintenance/Other Efficiency/Expansion Total Capital Expenditures 's. Appendix H *. Reconciliation - FY2006 Capital Expenditures 1Q2006 2@2006 3Q2006 4Q2006 Fiscal Actual Actual Actual Actual Year $ 270 $ 155 $ 154 $ 219 |$ 798 16.8 15.2 114 20.7 64.1 $ 438 $ 307 $ 268 $ 425 |$ 143.8 32