Slide 1: Pilgrim's Pride Corporation Financial Results for Third Quarter Ended Sep 27, 2015
Pilgrim’s Pride Corporation Financial Results for Third Quarter Ended Sep 27, 2015
Slide 2: Forward-looking statements
Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” and similar expressions, are forward-looking state
Slide 3: After expanding, Egg Sets Trending Lower than 2014
After expanding, Egg Sets Trending Lower than 2014 Source: USDA 3 195,432 209,093 211,630 190,499 196,489 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 1/ 3 1/ 17 1/ 31 2/ 14 2/ 28 3/ 14 3/ 28 4/ 11 4/ 25 5/ 9 5/ 23 6/ 6 6/ 20 7/ 4 7/ 18 8/ 1 8/ 15 8/ 29 9/ 12 9/ 26 10 /1 0 10 /2 4
Slide 4: Placements Also Lower than 2014 and year Average
Placements Also Lower than 2014 and 5 year Average Source: USDA 4 159,463 171,120 174,621 156,127 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 1/ 3 1/ 17 1/ 31 2/ 14 2/ 28 3/ 14 3/ 28 4/ 11 4/ 25 5/ 9 5/ 23 6/ 6 6/ 20 7/ 4 7/ 18 8/ 1 8/ 15 8/ 29 9/ 12 9/ 26 10 /1 0 10 /2 4 11 /7 1
Slide 5: Jumbo Bird Accounts for All Growth in Slaughter
Jumbo Bird Accounts for All Growth in Slaughter Source: USDA 5
Slide 6: Despite Increasing Pullet Placements, Breeder Growth Still Modest
Hatching layer growth remains moderate despite volatility in pullet placements. Pullet placements up 8.7% YTD. Hatching layers in Sept were up 3.9% from a year ago, up 3.5% YTD. Egg production flat. Despite Increasing Pullet Placements, Breeder Growth Still Modest Source: USDA 6
Slide 7: Cold Storage Higher vs 2014
Cold Storage Higher vs 2014 Source: USDA Overall inventories higher than 2014 on bigger leg quarter and breast meat inventories due to soft exports, harder comparisons, and more big bird production. 7
Slide 8: Cutout Values Affected by Spot Market but Contract Still at Strong Levels
Cutout Values Affected by Spot Market but Contract Still at Strong Levels Source: PPC 8 Cutout Values
Slide 9: Wholesale Chicken Prices
Wholesale Chicken Prices Source: USDA 9
Slide 10: Corn Stocks Declining But Still at High Levels
Corn Stocks Declining But Still at High Levels Global stocks slightly down from last year, USDA projecting Brazil/Argentina ‘15/16 to decline almost 7%. However, at 19.2% stocks to use global inventories will still be at one of historically highest levels. Source: USDA 10
Slide 11: Global Soybean Inventories Expanding
Global Soybean Inventories Expanding A record South American crop combined with record planted acres in the U.S. pushing global inventories higher. Stocks/Use close to historically high levels. Source: USDA 11
Slide 12: Third Quarter 2015 Financial Review
Third Quarter 2015 Financial Review Source: PPC Solid Quarter in U.S. and Mexico despite challenging exports, strong USD, and pressure from cutout values. Volumes impacted by operational improvement projects. SG&A higher than Q3-14, due to restructuring charges and the addition of the Mexico a
Slide 13: Net Debt Remains Low
Net Debt Remains Low Source: PPC Free Cash flow generation of $196MM in the quarter. Net debt multiple remains low at 0.42x LTM EBITDA (post PPC-Norte purchase). 13 805.4 379.1 Mexico Acquisition 307.1
Slide 14: Third Quarter 2015 Capital Spending
Third Quarter 2015 Capital Spending Capex (US$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. 14
Slide 15: Investor Relations Contact
Investor Relations Contact Investor Relations: Dunham Winoto Director, Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 15
Slide 16: Appendix: EBITDA Reconciliation
Appendix: EBITDA Reconciliation “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 income that we believe are not indicative o
Slide 17: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA Source: PPC The summary unaudited consolidated income statement data for the twelve months ended September 27, 2015 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended Septem
Slide 18: Appendix: Reconciliation of Adjusted Earnings
Appendix: Reconciliation of Adjusted Earnings Source: PPC A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows: 18 PILGRIM'S PRIDE CO
Slide 19: Appendix: Net Debt / Cash Position Reconciliation
Appendix: Net Debt / Cash Position Reconciliation Source: PPC Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt and notes payable, minus cash, cash equivalents and investments in available-for-sale securities. Net debt is presented because