Slide 1: Pilgrim's Pride Corporation Fiscal 2008 Third Quarter Financial Results
Pilgrim’s Pride Corporation Fiscal 2008 34 Quarter Financial Results July 29, 2008 ‘www. pilgrimspride. com
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, belief, anticipations, expectations or predictions of the future of Pilgrim's Pride Comoration and its management, including as ta the expected benefits and synergies as
Slide 3: Third Quarter & Fiscal Year-to-Date Overview
Third Quarter & Fiscal Year-to-Date Overview nin ¢ Reported net loss from continuing operations of $0.69 per share vs. net income of $0.95 per share in the third quarter of fiscal 2007. - Fiscal 2008 3 quarter results from continuing operations exclude charge of $0.06 per share related to discontinu
Slide 4: Protein Inflation Lagging Other Foods
Protein Inflation Lagging Other Foods June Consumer Price Index 12.0% 10.4% 9.0% 6.0% % Ghange in GPly-o-y 0.0% Fruits and vegetables Cereals andbakery Meats, pouty, fish and Dairy and related products products egas Consumers have only just begun to see higher prices for meat and poultry in their lo
Slide 5: Market Pricing Not Enough to Cover Higher Feed Costs
Market Pricing Not Enough to Cover Higher Feed Costs ep UB Boneless Skinless Breast Meat Pricin Recent UB Boneless Skinless Breast Meat Pricing ' Gio coe 2 ee Sa Pee a a = nn <i ca ce cae SLPPPPEPAP UB Georgia Dock Pricin: UB Leg Quarter Pricin: ut ss us Seas our. + srr sso toss srr sus tus ee tua A
Slide 6: Weekly Egg Sets Declining
re Weekly Egg Sets Declining Weekly Egg Sets 225 220 215 mm eggs 210 205 200 Source: USDA fa, 54, Sin Sim Sx, 5, 8 ny 92, Sy 5 py 7 205805 Me Yog 9g ag Ug "0 "0g Hag Pg 09 0g, Mg + 2008 -=-2007 + 2008
Slide 7: Soybean Oil
Soybean Oil Soyb Natural Gas Diesel fuel @ Wheat [oo 0 Billion io \C y 40% 60% 100% 50% 0% 50% 100% 150% 200% Current Price Increase vs.5 Year Avg. Current Price Increase vs. Prior Year Avg. Size of Circle = total dollar spend based upon current market and current volumes Weekly Data through 7/2408
Slide 8: Grain Prices Have Backed Off, Yet Remain at Historically High Levels
Grain Prices Have Backed Off, Yet Remain at Historically High Levels $8.00 — $480 $460 $7.50 Corn - Daily CBOT centbu $440 Meal - Daily CBOT ston $7.00 $420 Price Changes From 10/1/2007 to 7/24/2008 $400 $6.50 Corn up $2.04/bushel Meal up $95.00iton seo 3 $6.00 4 5 4 = § $5.50 s = 3 8 = © $5.00 $4.5
Slide 9: Natural Gas and Diesel Pricing Projections
‘oo i : Eso a * Hy i NT - lit al fs * Source: Energy information Administration Blase Case Pricing Projections July 2008 135% 100% 75% 50% 25% o% 25% 0% 75% 3rd Qtr 2006 4th Qtr 2008 ‘1st Qtr 2009 2nd Qtr 2009 EIA Estimated Pricing Natural Gas and Diesel Increase versus prior year 3rd quarter Natura
Slide 10: Disciplined Approach to Capital Expenditures
240 es es: Remmamenenas Disciplined Approach to Capital Expenditures HE HB Maintenance/Other me 5 fficiency/Expansion $185.1 $172.3 $77.4 $135.2 $41.9 $187 $28.4 $23.2 sapu7 JQ FYO8 9Mo FYD7 9MoFYO7PF 9MoFYOS Fro? FYOTPE «—_LTM 62808 *The Company projects FY2008 capital expenditures of approximately
Slide 11: Earnings Per Share
Earnings Per Share Fy2008" = Fy2007" % Change 3° Quarter EPS ($0.75) $0.94 -180% EPS from Continuing Operations ($0.69) $0.95 173% Fy2008® = Fy2007" % Change 3° quarter YTD EPS ($2.90) $0.21 -1481% EPS from Continuing Operations ($2.85) $0.22 -1395% Fy2008® = Fy2007" % Change Pro forma YTD EPS ($2.9
Slide 12: Sales Segment — Quarter
Sales Segment — 3 Quarter @ in mitions) Chicken United States Mexico Total Chicken Sales Sale of Other Products United States Mexico. Total Sale of Other Products Total Net Sales Actual FY2008 FY2007 % Change $ 1,829.2 $ 1,809.3 11% 154.2 TEL 171% 1,983.4 1,941.0 22% 214.4 1577 35.8% 10.0 58 724% 22
Slide 13: Sales Segment — Quarter YTD
Sales Segment — 3 Quarter YTD (in millions) Actual Pro forma FY2008 FY2007 % Change: FY2007 %Change: Chicken: United States $ 52803 $ 45237 16.7% $ 5,039.3 4.8% Mexico 4024 365.6 10.1% 365.6 10.1% Total Chicken Sales 5,682.7 4,889.3 16.2% 5,404.9 5.1% Sale of Other Products United States 648.5 482.1
Slide 14: Quarter Results and EBITDA Reconciliation
Actual (Sin w tkans, except per share gure) Ey20080 FY2007 %Change Net Sales $2,2075 — $2,104.5 49% Net Income (Loss) $ (528) $ 626 -184.3% Net Income (Loss) from Continuing Operations $ (483) $ 633 176.3% EBITDA $ 169 $ 1963 -91.4% Adjusted EBITDA $ 204 § 1963 89.6% EBITDA Reconciliation Net Income
Slide 15: Results from Operations — Quarter YTD
Results from Operations — 3 Quarter YTD Actual Pro forma (in ilions, exceptper share gare) Fy2008° ——FY2007° —%Change Fy2007° ——% Change Net Sales $ 63556 $6,3836 181% $ 59115 75% Net incame (Loss) $ (1966) $ 138 -15246% $ (204) -8637% Net Income (Loss) from Continuing Operations $ (1930) $ 144 1440
Slide 16: Summary Operating Results — Quarter
Summary Operating Results — 3 Quarter (Bin miions) Actual _Fyzoos® = _Fy2007__ Operating Income {Loss}: Chicken: United States $ (689) §$ 116.7 Mexico 70 14.4 Total Chicken (61.9) 131.1 Other Products: United States 184 49 Mexico 41.0 0.8 Total Other Products 19.4 57 GAAP Operating Income (Loss): $
Slide 17: Summary Operating Results — Quarter YTD
Summary Operating Results — 3 Quarter YTD (Sin milions) Actual Pro forma Fy2oo8” = Fy2007° Fy2007” Operating Income {Loss}: Chicken: United States $ (262.2) $ 101.2 $ 70.0 Mexico (0.9) 3.1 3.2 Total Chicken (263.1) 104.3 73.2 Other Products: United States 74.6 15.1 15.7 Mexico 3.0 1.9 1.9 Total Othe
Slide 18: Long-term Debt
Long-term Debt @ inthousands) June 28, 2008 September 29, 2007 Final Facility Final Facility Maturity Outstanding Available Total Maturity Outstanding Available Total Senior subordinated unsecured notes, at interest at 7 56% 2015 aoogoo 400000 2015 aoogoo = go 00 Senior subordinated nates, interest
Slide 19: Other Credit Facilities
Other Credit Facilities @ thousands) June 28, 2008 September 29, 2007 Final Facilty Final Facility Maturity Outstanding Available Tat Maturity Outstanding Available Tata Domestic Revaking Crecit Facility atLIBOR plus 4.25% to LIBOR plus 27616" m3 og = 5 213400 § 300,000 ©2013 g = § 215133 _§ 300,000
Slide 20: Temporary Financial Covenant Changes
Temporary Financial Covenant Changes New Requirement Ratios Adjusted: Reauinsyert oa FY 2008 Ge P2000 aa 2008 ll B00 Leverage Ratio 65.00% 56.12% 70.00% 70.00% 85.00% Tangible Net Worth $423 508 $577 469 $250,000 | saoopo0 | $80RDID io SOM of eee c 112.0% 121.30% 16.00% | 110,00% 112.60% Fixed Charg