Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q1 FY2006 Earnings Presentation
24 slides from Pilgrim's Pride's earnings presentation, Jan 23, 2006
Slide 1: Fiscal 2006 1st Quarter Results
——————— Pilgrim’s Pride Corporation Fiscal 2006 1** Quarter Results January 23, 2006
Slide 2: Cautionary Notes And Forward-Looking Statements
7 Cautionary Notes And Forward-Looking Statements Statements contained in this presentation that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Comoration and iis management, including any earings guidance far fiscal 2006, are forwar
Slide 3: U.S. Meat Supply Growth — Remains Nominal
7 U.S. Meat Supply Growth — Remains Nominal (milion tbs) % % % % 2002 2003 Change _2004 Change 2005P Change 2006P Change Beef 27 990 26,234 32% 24,544 6.4% 24893 06% 25905 49% Pork 19 B64 19945 14% 20509 28% 20692 09% 21,152 22% Total Red Meat 46754 48179 12% 45,053 2.4% AB BBS «7% «= AT OET 37% Chi
Slide 4: U.S. Per Capita Consumption (lbs.)
SM U.S. Per Capita Consumption (Ibs.) % % % 2004 2005P: Change 2006P: Change 2007P Change Beef 66.1 654 -1.1% 668 21% 64.0 42% Pork Sus 498 -2.9% 50.3 10% 50.0 -0.6% Total Red Meat W174 115.2 -1.9% Atta 16% 114.0 -2.6% Chicken 854 87.0 1.9% 89.2 25% 90.3 1.2% Turkey 17.0 16.7 -1.8% 16.2 -3.0% 16.3 0
Slide 5: Top U.S. Chicken Export Markets
——— Top U.S. Chicken Export Markets 2001 2002 2003, 2004 2005P. ibs. Kibe be, M/iba Sie, Ibe, Im Tbs. IDR Rusia"? 2,904 41.48% 1,521 31.67% 1458 29.42% 1,502 140% 1,671 31.70% Hong Kong 750 13.50% 60S 12.65% gos 6.23% 2m ALTTS 139(2.64% Mexico” 1 6.BSK mr 6% 365 7.38% am 9.01% 523 (9.92% China 108 1
Slide 6: Broiler Average Live Weights
——— Broiler Average Live Weights 5.6 55 545 53 5.2 54 November 2006 tonward forecast, 5.0 43 : T T -* 2003 2004 -* 2005 =~ 2006 Source: USDA and Informa Economics Projections dated December 29, 2005
Slide 7: U.S. Industry Outlook
—_———— U.S. Industry Outlook m Pricing environment during (vs. prior year periods) : ‘1st Qtr FY OB January 20th Primary: " GADock = > 26% to $0.73/ -5.1% to §0.704b "Leg Quarters > 123% to $0.33/b. “17.2% to $0.24/b Other = Wings > “17.2% 10 $0.82/b. “15.1% to $1.01/b "Breast Meat > 147% to $1.14Mb
Slide 8: Broiler Cold Storage Inventories
Broiler Cold Storage Inventories soo e50 ooo 750 700 Es) 550 soo 450 400 <i — J F M A M J A s o N D ae) ere eas Se Source: USDA and Informa Economics Projections dated December 29, 2005
Slide 9: U.S. Industry Outlook - Continued
—_———— U.S. Industry Outlook - Continued = Grain Market FY2006 Actuals: 1" Qtr FYO6 Near-by Futures vs, Prior Year Qtr a Corn* -4.8% to $2.00/bushel a Soybean Meal” +9.0% to $178.97iton FY2006 Outlook: 2005-2006 Crop Year USDA Futures vs, 1 Qtr FYO6 a Corn* 6.0% to $1 90/bushel a Soybean Meal” -3.6%
Slide 10: Energy Pricing
7 Energy Pricing Department of Energy -U.S. Energy Prices: Medium Recovery Case 2005 2006 2007 tst_[ 2nd | 3rd [ ath | tet [ and | 3rd [ ath | ast [ 2nd | 3rd [ 4th Diese (G/ua) 207 226 256 271 251 254 255 259 246 241 238 2.41 Natural Gas? (Sime) 652 7.14 9.84 1264 1125 951 837 10.12 10.23 751 8.07
Slide 11: Results from Operations — 1st Quarter
SM Results from Operations — 1*t Quarter (in millions, except per share figures) Actual FY2006 FY2005 %Change EPS $ 039 § 073° 46.6% Net Sales $ 13438 $ 1,368.2 -1.8% Net Income $ 25.7 $ 485 — -47.0% EBITDA $ 749 $ 1216 — -38.4% EBITDA Reconciliation Net Income $ 25.7 $ 48.5 Add Income Tax Expense 1
Slide 12: Sales by Segment — Actual
7 Sales by Segment — Actual (in millions) Chicken: United States Mexico Total Chicken Sales Total Turkey Sales Sale of Other Products: United States Mexico Total Sale of Other Products Total Net Sales Three Months Ended 1QFYO6 1QFYO5 % Change $1,034.2 $ 1,034.9 0.1% 92.4 96.9 4.7% $1,1266 $1,131.8 -
Slide 13: Summary Operating Results - Actual
Summary Operating Results - Actual @ in millions) Three Months Ended 1Q FY06 1QFYO5 % Change Operating Income: Chicken: United States $ 53.9 $ 886 -39.2% Mexico 7.1 5.2 -236.4% Sub Total $ 468 $ 938 -60.1% Turkey (6.6) (*) (48) -18.4% Other Products: United States $ 45 $ 16 196.3% Mexico 0.5 04 3.6%
Slide 14: Long-Term Debt
SM Long-Term Debt Fiscal Quater Encina Fiscal Year Erina (Sin thoumnds) December 31, 2005 October 1, 2005 Final Facity Final Facity Maurty Outstaming Available Tote Maturity Ouistaming _Avilatle Total Senior unsecurednotes, inerestaase% 2011 § U240——-—SSC«SSCO AO SONSBS SSCS Senior unseourednotes, t
Slide 15: Other Credit Facilities
Other Credit Facilities (Sin thousands) Fiecal Quater Ending December 3, 2006 Fisoal Year Ending otober 4, 2005 Final Maturity Outstanding Domastio Revoling Credit Facility atLIBOR plus 0.875% 2000 Domestic Revoling Credit Facility at LBOR plus 1.00% an Mexico Revohing Credit Facilty 04 Total Rewhin
Slide 16: Summary Credit Ratios & Other Information
7 Summary Credit Ratios & Other Information FY2005 1Q2005* 1Q 2006" EBITDA / Interest Expense (**) 1282x 995x B.B6x Total Debt / EBITDA ("} 0.94x 108x = 1.00x Net Debt/ EBITDA ("") 0.70x O74x = 0.67x Total Debt / Total Capital 30.1% 35.5% 30.5% Net Debt/ Total Capital 244% 27.2% = 22.7% Net Worth (m
Slide 17: Capital Expenditures
Capital Expenditures 160 140 120 100 *The Company projects FY2006 capital expenditures of approximately $180 - §200 milion $135.3 $116.6 r $43.8 | 7 “J 19 F Ws 10 Fro6 FrOS LT 120105 7
Slide 18: Other Information
i Other Information
Slide 19: Chicken Sales - Actual
7 Chicken Sales - Actual in rrllions) Three Months Ended TQFYO6 1QFY0S %Change Prepared Foods Foodservice $ 3862 $ 4019 -3.9% Retail 73.2 623. 17.5% Total Prepared Foods 459.4 464.2 -1.1% Fresh Chicken Foodservice 352.0 344.7 21% Retail 128.1 150.2. -14.7% Total Fresh Chicken 480.1 494.9 -3.0% Expor
Slide 20: Turkey Sales - Actual
Turkey Sales - Actual (in millions) Prepared Foods: Foodservice Retail Total Prepared Foods Fresh Turkey Foodservice Retail Total Fresh Turkey Export and Other Prepared Foods Turkey Other Total Export Other Turkey By Products Total Export and Other Total Turkey Sales Three Months Ended 10 FY05 %Chan
Slide 21: Reconciliation — Adjusted LTM EBITDA
7 Reconciliation — Adjusted LTM EBITDA 2Q2004 «=63Q2004 «= 4q2004 = 192005 LT™ Actual Actual Actual, ~—Actual__ Ending 11/05 Net Incame $2951 § 9814 §$ 75290 $48,509 $ 186564 Add Income Tax Expense (benefit) 12894 12,283 48018 = «31400 103278 Interest expense, net 13624 14690 11471 12.224 51209 Depr
Slide 22: Reconciliation — Adjusted FY2005 EBITDA
7 Reconciliation — Adjusted FY2005 EBITDA 192005 202005 3Q2005 492005 F¥2005 Actual Actual Actual Actual Actual NetIncome $ 48509 $56,389 $ 85,352 $74,729 $ 264,979 Add: Income Tax Expense (benefit) 31,400 34.204 36,324 34.616 138,544 Interest expense, net 12,224 9318 12,322 10,068 43,932 Depreciati
Slide 23: Reconciliation — Adjusted LTM EBITDA
7 Reconciliation — Adjusted LTM EBITDA zaznns § 3q2005 © 4qz005 «102006 L™ Actual Actual Actual ~—Actual_ Ending 123105 Net Income $5698 $85,952 $ 74728 $ 28617 $ 243,086 Add Incorne Tax Expense (benefit) 34204 98,424 a4,816 = 10,028 117,167 Interest expense, net 9318 12,322 10,088 8448 40,158 Depre
Slide 24: Summary Credit Ratios & Other Information
Summary Credit Ratios & Other Information EBITDA Reconciliation of FY2005 and LTM Feriods EBITDA LT™* LT Fy2005 Ending 1n105 Ending 12131005 Nat Incorne 284,970 3 108,664 8 243,088, Add: Income Tax Expense 198,544 103,273 aa7ae7 Interest expense, nat 43,032 51,008 40.188 Depreciation and amortizatio