Slide 1: Fiscal 2005 Annual & 4th Quarter Results
——————— Pilgrim’s Pride Corporation Fiscal 2005 Annual & 4'" Quarter Results November 7, 2005
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 Pigs Pride Comoration and its management, including the fiscal 2000 eamrige gudance, are forwardootang
Slide 3: U.S. Meat Supply Growth — Remains Nominal
—_———— U.S. Meat Supply Growth — Remains Nominal (milion bs) % % % % 2002 2003 Change _2004 Change 2005P Change 2006P Change Beef 27 p90 26234 3% 24544 8% 24855 0% 25812 5% Pork 19 B64 19945 1% 20509 3% 20640 1% 21076 2% Total Red Meat 48754 46179 1% 45053 2% 45295 1% «= AB BBB 4% Chicken 32240 a274
Slide 4: U.S. Per Capita Consumption (lbs.)
SM U.S. Per Capita Consumption (Ibs.) % % 2004 2005P: Change 2006P Change Beef 66.1 664 05% 68.2 27% Pork eas 497 3.1% 50.1 08% Total Red Meat 1174 116.1 1.1% 118.3 19% Chicken 85.4 86.9 1.8% 88.6 2.0% Turkey 17.0 16.4 3.5% 16.1 -1.8% Total Poultry* 102.4 103.3 0.9% 104.7 14% Total Red Meat And Poul
Slide 5: Top U.S. Chicken Export Markets
7 Top U.S. Chicken Export Markets zo01 zonz zoos zona 005 P ies, ibe, a a TD ies, M/lbR, Russia 1 4521 31.67% 1458 29.42% 1,502 31.40% 1,746 31.54% Hong Kong 7s0 13.50% ene 12.66% 303 6.23% 228 «ATT 166 3.00% Mexico a1 327 365 7.38% ay 801% S27 352% China 1 1s 1.34% 73 3.60% 282 5.89% 36 O75 1 3.4%
Slide 6: U.S. Industry Outlook
SM U.S. Industry Outlook = Pricing environment during (vs. prior year periods) : a” Qtr FY 05 Fiscal Year 2006 Primary: " GADock => 6.0% to $0.76/lb 0.5% to $0.74/b. = Leg Quarters > +54.7% to $0.45/b. — +12.8% to $0.36/b. Other: = Wings > 20.1% to $0.83/b, -86% to $0.95/b. " BreastMeat > 244% to §1
Slide 7: U.S. Industry Outlook - Continued
—_———— U.S. Industry Outlook - Continued = Grain Market FY2005 Actuals: 4 Qtr FYOS Fiscal Year 2005 Near-by Futures Near-by Futures vs. Prior Year Qtr vs. Fiscal Year 2004 0 Gorn 4.7% to $2.43/bushel -16.6% to $2.26/bushel 0 Soybean Meal" -11.8% to $209.98tton 25.7% to $191. 30/ton FY2006 Outlook: 2
Slide 8: Hurricane Effects
Hurricane Effects Katrina: Market Value of New Orleans Frozen Inventory Lost- $1.6 million* *Substantially all recoverable from Insurance and other 3rd parties Product loss due to refrigeration loss - $124,000 Repairs and Generator Expenses - $57,000 #ofBirds #ofBirds % of Total Contract Farms House
Slide 9: Energy Pricing
7 Energy Pricing Department of Energy - U.S. Energy Prices: Medium Recovery Case 2004 2005, 2006. tst_[ and | 3rd | ath | tet [ and | 3rd | ath | tet [ ana | 3rd | ain Diesel*(S/ga) 159 1.72 183 210 207 226 256 285 257 253 254 269 Natural Gas* (Bie) 581 629 566 648 662 714 979 1279 999 7.75 7.71 9.4
Slide 10: Earnings per Share
————— Earnings per Share Actuals 4th Quarter Fiscal Year Proforma Fiscal Year FY2004 %Change 1.13 2.05 2.15 -0.9% 94.1% 85.1% 10
Slide 11: Earnings per Share
SM Earnings per Share excluding effects of turkey restructuring and other non-recurring items (see slides 37 — 40) FY2005 FY2004 %Change Actuals 4th Quarter $ 112 $ 0.99 13.1% Fiscal Year $ 382 $ 271 41.0% Pro Forma Fiscal Year $ 382 $ 277 37.9% Reflects the effect of removing the Turkey Restructuri
Slide 12: Non-Recurring Items Affecting Fiscal 2004 & 2005
Non-Recurring Items Affecting Fiscal 2004 & 2005 (in Millions except EPS Effect, net) ‘Twelve Months Ended October 1, 2005 NonRecuring Miscellaneous Net_ Total Income Expenses _Net Income (Loss) Litigation Proceeds 8 - S - 8 - S7 S17 Turkey asset sales 8 = 8 7 & 7 53 53 Total $ E $s 7 3 7 S70 8 417.
Slide 13: Sales by Segment — Actual
SM Sales by Segment — Actual 6 inmitiore) 4 Quarter Fiscal Year Ended Fy2005 _ FY2004 _% Change FY2005 _ FY2004 _%Change Chicken United States $11825 $1,158.56 04% $44112 $4,0917 7.8% Mexico 101.2 938 7.8% 4034 362.4 11.3% Tatal Chicken Sales $1,2687 $ 1,252.3 09% $48146 $4,541 8.1% Total Turkey Sal
Slide 14: Sales by Segment — Fiscal Year Pro forma
7 Sales by Segment — Fiscal Year Pro forma (in mins) Actual Pro forma Adj. Pro forma* FY2005 FY¥2004 Change FY 2004 %Change Chicken Sales United States $ 44112 § 4456.2 1.0% § 4,377.0 08% Mexico 403.4 362.4 11.3% 356.1 13.3% Total Chicken Sales $ 48146 $ 48186 01% = § 4,733.1 1.7% Total Turkey Sales
Slide 15: Summary Operating Results - Actual
7 Summary Operating Results - Actual Twelve Months Ended (8 In Millions) Three Months Ended 4QFY05 4QFY04 FY2005 FY2004 Operating Income: Chicken: United States $ 1137 $1219 $ 4058 $ 3297 Mexico 73 (07) 30.8 (78) Sub Total $ 1216 $1212 $4454 $ 9221 Turkey (3) 84 (225) (968) Other Products United Sta
Slide 16: Summary Operating Results — Fiscal Year Pro forma
Summary Operating Results — Fiscal Year Pro forma Profonna Adj Pro format ¢ in millions) Twelve Months Ended Twelve Months Ended 4QFY05 4QFY04 Fy2005 FY2004 Operating Income (Loss): Chicken and Other Products United States $ 4056 $ 3483 $ 4056 $ 3555 Mexica 39.8 0.7) 398 @.2) Sub Total $ 4454 § 3476
Slide 17: Results from Operations — 4th Quarter
te Results from Operations — 4" Quarter in milions, except per share figures) Actual EY2005 Fy2004 %Change Net Sales $ 14827 $ 14865 -0.3% Net Income $ 147 $ 153 -0.8% EBITDA $ 1595 $ 188.0 0.9% EPS $ 112 $ 1413 -0.9% EBITDA Reconciliation Net Income $ 147 $ 153 Add Incame Tax Expense 34.8 46.0 Inte
Slide 18: Results from Operations — 4th Quarter - Continued
SM Results from Operations — 4'* Quarter - Continued G inmilfions, except per share figures) Actual FY2008 Fy2004 EBITDA Reconelliation Net Income $ 47 $ 753 Addl Incame Tax Expense M6 46.0 Interest expense, net 10.1 1.4 Depreciation and amartization 40.7 267 Minus: Amortization of capitalized finan
Slide 19: Results from Operations — Fiscal Year
SM Results from Operations — Fiscal Year (Ginmilors except per share gues) Net Sales Net Incame EBITDA EPS EBITDA Reconeilation Net Income Add Income Tax Expense Interest expense, net Depreciation and amortization Minus Amortization of capitalized financing costs EBITDA EBITDA Margin Actual Proforma
Slide 20: Results from Operations — Fiscal Year - Continued
SM Results from Operations — Fiscal Year - Continued (Sin rilions, except per share figures) Actual Proforma % % FY2006 FY2004 Change FY2004 Change EBITDA Reconciliation Net Income § 2650 § 1283 § 1428 Add Income Tax Expense 1386 80.2 s90 Interest expense, net 89 521 565 Depreciation and amortizatio
Slide 21: Long Term Debt
SM Long Term Debt Fiscal Year Encin, Fiscal Year Ereing (Sin thoumnds) October 1, 2005 October 2,2004 Final Facity Final Facity Maurty Outstaring Available Tote Maturity Ouistaming _Avilatle Total Senior unsecurednotes, ineresta9s% 2011 § «GZS =- =< OF SUSDIS, SSCS Senior unseourednotes, terest 9%%
Slide 22: Other Credit Facilities
Other Credit Facilities (in thousands) Fisoal Yea Ending otober 1.2006 Fieoal Year Ending otober 2.2004 Final Maturity Outstanding Domestis Rewhing Credit Faciliy at LBOR plus 0.875% 2000 Domestio Rewhing Creda Faciliy at UBOR plus 1.00% an Mexico Revelving Credit Faciity 204 Total Rewhing Credit Fa
Slide 23: Summary Credit Ratios & Other Information
7 Summary Credit Ratios & Other Information FYE 2004 FYE 2005 EBITDA/ Interest Expense (*) 8.34x 12.82x Total Debt / EBITDA (*) 1.17x os4ax Net Debt / EBITDA (**) 1.08x a.70x Total Debt / Total Capital 37.1% 30.1% Net Debt / Total Capital 35.4% 24.4% Net Worth (millions) $923.0 $1,223.6 Book Value/C
Slide 24: Summary Credit Ratios & Other Information — Continued
Summary Credit Ratios & Other Information — Continued EBITDA Reconciliation of FY2004 and FY2005 Adj. Pro forma Adj. Actual Fy2004* Fy2004 Fy2005 Net Income 3 142,787 128,840 264,978 Add: Income Tax Expense 89,054 80,195 198.544 Interest expense, net 56,500 52,129 43.092 Depreciation and amortizatio
Slide 25: Capital Expenditures
a Capital Expenditures 140 120 100 40 Million $ aMaintenance/other Expansion $03.6 $798 $13.6 aie $70.0 $23.8 $26.4 Re $27. $63 $21.1 $20.1 arya 40 FOS Froa FY 04 Pro forma ‘The Company projects FY 2006 capital expenditures of approximately $1.80 - $200 million $116.6 FYOS 25
Slide 26: FY2006 Earnings Guidance
FY2006 Earnings Guidance Eumings Estirate (00's) Sales US. Chicken Mexica Chicken Tetal Chicken Turkey US. Other Mexico Other Tetal Other Teal Ses Coys sca Operating Income Other Expenses (Income) Interest expense (net) Foreign exchange loss (gsi) Miscellaneous, ret Incomebetore Inoame Taxes Inccme
Slide 27: FY2006 1st Quarter Earnings Guidance
FY2006 1* Quarter Earnings Guidance EumingaE strate (000'% "Quarter 1" quarter "quarter 1" quarter 2006 2005 2008 2005 Seles Production Pounds (000's) US. Chicken to $ 1100000 § = 1024491 1,838000 to 1366000 1300/68 Mexico Chicken to __‘105,000 96,937 ‘182000 to ‘172.000, “S9B18 Total Chicken 7[s000
Slide 28: Other Information
i Other Information
Slide 29: Chicken Sales - Actual
—_———— Chicken Sales - Actual Giomilions) 4" Quarter Fiscal Year Ended FY2005 FY2004 %Change Fy2005 FY2004 %Change Prepared Foods: Foodservice $ 4056 $ 4260 48% $1,6229 $1,5538 4A% Retail 770 56.6 36.0% 283.4 213.8 32.6% Total Prepared Foods 482.6 4826 0.0% 1,906.3 17676 78% Fresh Chicken Foodservic
Slide 30: Chicken Sales — Fiscal Year Pro forma
7 Chicken Sales — Fiscal Year Pro forma in mtions) Fy2005 Fy2004 % Fy2004* Actual Pro arma _ _Change Adj Proforma _% Change United States Prepared Foods: Foodsevice § 16221 § 16784 -34% § 1649.2 1.8% Retail 263.4 2266 __25.1% 2219 277% Total Prepared Foods 1,906.5 1,906.0 0.0% 1871.41 1.8% Fresh Chi
Slide 31: Turkey Sales - Actual
SM Turkey Sales - Actual in milions) 4" Quarter Fiscal Year Ended Fy2005 FY2004 %Change Fy2005 FY2004 %Change Prepared Foods Foodservice $79 $ 186 -575% $ 611 $ 809 -245% Retail 10.6 10.0 6.0% 317 374 0.8% Total Prepared Foods 18.5 28.6 -35.3% 88 1183 -16.5% Fresh Turkey Foodservice 3.8 121 68.6% 12
Slide 32: Turkey Sales — Adjusted Fiscal Year
in milions) Prepared Foods: Foodservice Retail Total Prepared Foods Fresh Turkey Foodservice Retail Total Fresh Turkey Export and Other Prepared Foods Turkey Other Total Export and Other Total Turkey Sales "The fst quaneroftscalyear2004 contained 14 weeks as compared inthe more standard 13 weeks inc
Slide 33: Sales by Segment — Fiscal Year 2004
Sales by Segment — Fiscal Year 2004 Reconciliation of 2004 Adjusted Proform: @ in millions) 192004 192004" 202004 302004 402004 Fy2004* Proforma _Adj. Proforma __Actual Actual Actual _Adj. Pro forma Chicken: United States $ 11084 § 10292 § 19682 $ 11211 § 11585 § 43770 Mexico 89.0 826 89.0 90.7 93.8
Slide 34: Chicken Sales — Fiscal Year 2004
7 Chicken Sales — Fiscal Year 2004 Reconciliation of 2004 Adjusted Proforma in milions é : 1o2004 1o2004 202004 302004 4g2n04 Fy2004 Proforma _Pra forma Adi* Actual Actual Actual _ _Pro forma Adj* United States Prepared Foods: Foodservice § 405 § 3120-8103 87) § ABD 192 Retail 66.4 07 56.0 486 566 2
Slide 35: Summary Operating Results
Summary Operating Results Reconciliation of 2004 Adjusted Proform: (in millions) 102004 © 192004 192004 202004 302004 402004 «= FY2004 Proforma Adjustment* __Pro forma Actual Actual Actual __Pro forma Operating Income (Loss): Chicken and Other Products: United States § 688 § 49 § 639 § S69 § 1055 §
Slide 36: Turkey Sales — Adjusted Fiscal Year
7 Turkey Sales — Adjusted Fiscal Year ion of 2004 Adjusted Proforma 102004 1q2004* 202004 302004 402004 Fy2004* Pro forma Pro forma Adj.” Actual Actual Actual Pro forma Adj.* Prepared Foods Foodservice $ 261 $ 242 $ 174 $ 169 $186 $ 79.1 Retail 82 78 Et 15 10.0 36.8 Total Prepared Foods 34.3 31.8 25
Slide 37: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the twelve months ended October 1, 2005 (Sinthousands except per share figures) With turkey Remove turkey Without turkey restructuring & restructuring& © restructuring & other non-recurring other non- other non. items recurringitems re
Slide 38: Effects of turkey restructuring and other non-recurring items
——— Effects of turkey restructuring and other non-recurring items on the quarter ended October 2, 2004 (8 in thousands except per share fiqures) wihturkey Remove turkey Without turkey restructuring & restructuring restructuring & other non- other non- other non- recurring items _recurring items _ re
Slide 39: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the twelve months ended October 2, 2004 ($ in thouzands except for per share fiqures) Net Salen Costs and Eenses: Cont of sales Cont of salex-restructuring Non-reeurring Recoveri Selling, general and adminixtrative Other restructuring
Slide 40: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the twelve months ended October 2, 2004 — Proforma ($ in thousands except for per share fiqurex) with turkey Removeturkey Without turkey restructuring & —restructuring& — restructuring & other non- other non- other non- recurringitems
Slide 41: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the twelve months October 2, 2004 — Adjusted to 52 weeks ($ in thousands except for per share fiqures) Net Salen Cont of salex-restructuring Non-recurring Recoveri Selling, general and administrative Other restructuring charges Operati
Slide 42: Effects of turkey restructuring and other non-recurring items
Effects of turkey restructuring and other non-recurring items on the twelve months October 2, 2004 - Pro forma Adjusted to 52 weeks ($ in thousands except for per share fiqurex) Net Salen Costs and Expenses: Cont of zalex Cost of sales-restructuring Non-recurring Recoveries Selling, general and admi
Slide 43: Summary Operating Results
Summary Operating Results tion of the Aujusted 2004 Income Statement. ($inthousands except for par share fiqures) Net Sales Costs and Bpenses Cost of eaee Cost of sdeerestruduring Non-recurring Recoveries Selling, genera and sdministrative Giher restructuring charges Cperating income ther Epense(hoo
Slide 44: Summary Operating Results
Summary Operating Results (Ginthousands except for per share figures) goo som04 1go004 Proforma Froforma 2oz008 scz0at acz0at zoo Proforma _Adjustment® _Adjusted® ‘Actual Actual Actus Adjusted? Net Sales 9 1p05169 $ (wo7sI) © tpare1 © 1pe4c07 $ 1aa7.98 sassase $5 717p08 Costs and Expenses: Cost of s
Slide 45: Reconciliation — Adjusted FY2004 EBITDA
—_———— Reconciliation — Adjusted FY2004 EBITDA Net Income Add: Income Tax Expense (beneft) Interest expense net Depreciation and amortization Minus’ Amortization of capitalized financing costs EBITDA Adjustments: Turkey Restructuring Other Restructuring Turkey Recall Insurance Turkey Recall Effects
Slide 46: Reconciliation — Adjusted FY2004 EBITDA
7 Reconciliation — Adjusted FY2004 EBITDA yozo01 = tq200¢ = 192004 maz00s« 3a7004 = 407004) FYE 2004 Actual Adjustment* Adjusted’ Actual Actual __Actual__Adjusted* Net Income § 10,286 735 § 9551 §32951 § O81 § 75,290 § 127,605 Add: Income Tax Expense (benefit 8,321 jam 727 13,694 12,288 46.018 73,60
Slide 47: Reconciliation — Adjusted FY2004 Pro forma EBITDA
7 Reconciliation — Adjusted FY2004 Pro forma EBITDA 12008142008 1q2004 22008342004 aqzo0a FYE 2004 Proforma Adjustment’ Aaj. Proforma’ Actual Actual _ Actual _ Adjusted" NetIncome S274 § (178) $ 22977 $52951 F |BId $75,290 F 141,032 Aa Income TaxE wense (benefit) ar4et 22, 15954 13594 12.283 48.018
Slide 48: Reconciliation — Adjusted FY2005 EBITDA
—_———— Reconciliation — Adjusted FY2005 EBITDA 1Q@2005 2Q2005 3q2005 4Q2005 FYE 2005 Actual Actual «== Actual_—— Actual Actual Net Income $ 48509 $56,989 $ 85,352 $74,729 $ 264,979 Add Income Tax Expense (benefit) 31400 34,204 38,824 84,616 138,544 Interest expense, net 12,224 9.318 12,822 10,068 43