Slide 1: Pilgrim's Pride Corporation Financial Results for Second Quarter Ended June 26, 2016
Pilgrim’s Pride Corporation Financial Results for Second Quarter Ended June 26, 2016
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: Eggs Sets Trending Lower than 2015
Eggs Sets Trending Lower than 2015 Source: USDA 3 211,832 190,260 211,446 206,449 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 1/ 9 1/ 23 2/ 6 2/ 20 3/ 5 3/ 19 4/ 2 4/ 16 4/ 30 5/ 14 5/ 28 6/ 11 6/ 25 7/ 9 7/ 23 8/ 6 8/ 20 9/ 3 9/ 17 10 /1 10 /1 5 10 /2 9 11 /1 2 11 /2 6 12 /1 0 1
Slide 4: Placements Flat vs 2015
Placements Flat vs 2015 Source: USDA 4 174,769 156,050 168,336 174,352 173,419 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 1/ 9 1/ 23 2/ 6 2/ 20 3/ 5 3/ 19 4/ 2 4/ 16 4/ 30 5/ 14 5/ 28 6/ 11 6/ 25 7/ 9 7/ 23 8/ 6 8/ 20 9/ 3 9/ 17 10 /1 10 /1 5 10 /2 9 11 /1 2 11 /2 6 12 /1 0 12 /
Slide 5: Jumbo Bird Continues to Gain Market Share
Jumbo Bird Continues to Gain Market Share Source: USDA 5
Slide 6: Hatching Layers Lower than Last Year, despite Higher Placements
Hatching layers in May decreased vs 2015, and are close to 5-year average. Pullet placements +5.8% YTD, but monthly data are volatile and less correlated with flock growth and production. Hatching Layers Lower than Last Year, despite Higher Placements Source: USDA 6
Slide 7: Cold Storage Levels Stabilizing
Cold Storage Levels Stabilizing Source: USDA Overall inventories higher than 2015 but still close to 1 week production. 7
Slide 8: Cutout Values Improving and Contract Still at Strong Levels
Cutout Values Improving and Contract Still at Strong Levels Source: PPC 8 Cutout Value
Slide 9: Leg Quarters Strengthening, Other Parts In-line with Seasonal Patterns
Leg Quarters Strengthening, Other Parts In-line with Seasonal Patterns Source: USDA 9
Slide 10: Corn Stocks Still at High Levels
Corn Stocks Still at High Levels Global stocks maintaining high levels as harvest remains plentiful. 2016 stocks-to-use global inventories have backed off slightly compared to historically high in 2015 but still elevated. Source: USDA 10
Slide 11: Global Soybean Inventories Moderating
Global Soybean Inventories Moderating Global inventories of soybeans remain high but have come off from 2014 and 2015 record highs. Demand for oilseed products estimated to narrow slightly in 2016. Source: USDA 11
Slide 12: Second Quarter 2016 Financial Review
Second Quarter 2016 Financial Review Improved Q2 performance: Strong operating results in MX due to better markets and improved synergies. U.S. solid but impacted by downtime due to operational improvements at largest PF plant. SG&A in-line with Q2-15 ($48.8M ex- restructuring charges) despite M
Slide 13: Balance Sheet Strong, With Much Room for Strategic Investments
Balance Sheet Strong, With Much Room for Strategic Investments Source: PPC Cash Flow From Operations generation of $111MM in the quarter. Net debt multiple remains low at 1.15x LTM EBITDA despite recent $700MM special dividend payment. 13 307.1 307.1
Slide 14: Second Quarter 2016 Capital Spending
Second Quarter 2016 Capital Spending Capex (US$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 June 26, 2016 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 28, 201
Slide 18: Appendix: EBITDA Margin Reconciliation
Appendix: EBITDA Margin Reconciliation Source: PPC EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period. 18 PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) Thirteen Weeks Ended Twenty-Six W
Slide 19: 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: 19 PILGRIM'S PRIDE CO
Slide 20: Appendix: Adjusted EPS Bridge
Appendix: Adjusted EPS Bridge Source: PPC A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows: 20 PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended Twenty-Six Weeks Ended June 26, 2016 June 28, 201
Slide 21: 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
Slide 22: Appendix: Segment and Geographic Data
Appendix: Segment and Geographic Data Source: PPC 22 PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data Thirteen Weeks Ended Twenty-Six Weeks Ended June 26, 2016 June 28, 2015 June 26, 2016 June 28, 2015 (Unaudited) (In thousands) Sources of net sales by country of origin