Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Investor Day (March 2025)
110 slides from Pilgrim's Pride's investor day presentation, Mar 14, 2025
Slide 1: Investor Day: To be the BEST
Investor Day To be the BEST March 14th, 2025 Pilgrim’s Pride Corporation (NASDAQ: PPC)
Slide 2: Cautionary Notes And Forward-Looking Statements
INVESTOR DAY Cautionary Notes And Forward-Looking Statements ◼ Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statem
Slide 3: Today's Speakers
INVESTOR DAY Today’s Speakers Fabio Sandri Bernie Adcock Sergio Nahuz Kendra Waldbusser President & CEO Head of US Fresh CMO & Head of Prepared Foods Head of FSQA & Live Tech Services Ivan Siqueira Jesus Munoz Andrew Rojeski Matt Galvanoni President, Pilgrim’s Europe President, Pilgrim’s Mexico Head
Slide 4: Fabio Sandri: Global
Global Fabio Sandri President & CEO 4
Slide 5: A Leading Food Company
GLOBAL A Leading Food Company IN THE U.S. 1 6 EUROPE BUSINESS UNITS NEARLY PILGRIM’S UK CASE READY OUT OF MOY PARK SMALL BIRD EVERY PILGRIM’S FOOD MASTERS BIG BIRD LBS OF CHICKENS SOLD PREPARED FOODS 1 4 IN THE U.K. NEARLY OUT OF EVERY LBS OF PIGS SOLD 1 4 IN MEXICO OUT OF IN THE U.K. 1 4 EVERY NEAR
Slide 6: Our Vision, Strategy, Methods & Values
GLOBAL Fill up slide with the graphics below – look to small, too much white space Our Vision, Strategy, Methods & Values RELENTLESSLY PURSUE ROOT CAUSE DETERMINATION SIMPLICITY AVAILABILITY HUMILITY DRIVE OWNERSHIP MAKE DECISIONS AND BASED ON ACCOUNTABILITY KNOWLEDGE, DEEPER FACTS AND DATA SINCERIT
Slide 7: An Unwavering Commitment To Safety As A Condition
GLOBAL An Unwavering Commitment To Safety As A Condition Pilgrim’s Global Safety Index 0.13 0.04 2019 2023 Behavior Management Tools – Standardized Operating – Root Cause Analysis – Repetitive Motion Procedures – Safety Observations Assessments – Job Rotation & Training – Management KPIs Source: PPC
Slide 8: Creating An Experienced, Stable Team For Our Business
GLOBAL Creating An Experienced, Stable Team For Our Business • Improved yield performance Pilgrim’s Turnover • Reduced downtime Comparison • Superior quality 2019 2024 • Enhanced net staffing U.S. Europe Mexico Decline Since 2019 -36% -31% -14% Source: PPC 8
Slide 9: A Commitment To Team Member Development and our Communities
GLOBAL A Commitment To Team Member Development and our Communities 9
Slide 10: Cultivating A Better Future Through Sustainability
GLOBAL Cultivating A Better Future Through Sustainability Mentality – “Sustainability Is 20% 14.2% Efficiency” – Integration Throughout Decrease in scope 1 and 2 Renewable energy use Our Business emission intensity from 2019 to 2023 Approach – Resilient Food Systems 17% 130+ – Improved Productivity
Slide 11: Cultivating Partnerships With Key Customers
GLOBAL Cultivating Partnerships With Key Customers Scale Key Customer Global Growth From 2019 To 2024 Scope 74.0% Key Customer Partnerships Growth 41.0% Trust Profitability Volume Net Sales 1. Reflects total % change from 2019 to 2024 for Key Customers In US. 11
Slide 12: Combined With An Extensive Array Of Branded Offerings
GLOBAL Combined With An Extensive Array Of Branded Offerings United States Europe Mexico 12
Slide 13: A Diversified Portfolio
GLOBAL A Diversified Portfolio Sales by Geography Sales by Mix Sales By Channel 12% 5% 9% 26% 29% 59% 33% 53% 74% United States Fresh Retail Europe Prepared (Value Added) Food Service Mexico Other Export Source: PPC 13
Slide 14: Driven By Enhanced Production Efficiencies Through Operational Excellence
GLOBAL Driven By Enhanced Production Efficiencies Through Operational Excellence Total COGS and SG&A Savings Operational Improvement ($MM) $300 $250 $200 $210 $180 $125 $140 $100 $93 $60 $53 $24 ($80) ($129) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 impacted by por
Slide 15: Driving Profitable Growth
GLOBAL Driving Profitable Growth Sales ($MM) ADJ EBITDA ($MM) 17,878 2,214 11,409 57% 127% 974 2019 2024 2019 2024 Higher Attribute Offerings Operational Expertise Management Approach – NAE, Veg Fed – Mix Management – Zero-Based Budgeting – NAIHM – Quality & Safety Protocols – Organizational Structu
Slide 16: Resulting In A More Resilient Earnings Stream
GLOBAL Resulting In A More Resilient Earnings Stream Average 2019-2021 7.9% Average 2022-2024 9.3% 25.0% Adjusted EBITDA Margin 20.0% 15.0% United States PPC Global 10.0% Europe 5.0% Mexico 0.0% -5.0% -10.0% -15.0% 2019 2020 2021 2022 2023 2024 Source: PPC SEC Filings 16
Slide 17: Unlocking Shareholder Value Through Integrated Strategies And Differentiated Capabilities
GLOBAL Unlocking Shareholder Value Through Integrated Strategies And Differentiated Capabilities Consistent execution . . . along with Unlocking Value of strategies . . . differentiated capabilities For Shareholders • Key Customer • Higher Attribute Offerings • Drive Growth Partnerships • Management
Slide 18: Protein is a Bright Spot
GLOBAL Protein is a Bright Spot • Increasing focus on protein – 59% sought protein for diet in 2022 – Rose to 71% as of 2024 Consumption Forecast • Amplified interest in healthy, (Million MT) balanced diets through meat 450 – 64% agreed in 2019 391 – Rose to 73% by 2024 360 • Chicken - • Advantaged
Slide 19: Building A Sustainable Competitive Advantage
GLOBAL Building A Sustainable Competitive Advantage Drive Growth • Foodmasters Acquisition • Just Bare Launch Drive Enhance Margins • Athens & Merida Investments Growth Unlocking Enhance Margins Shareholder • European Integration Value • Working Capital Management Reduce Volatility • Mexico Live Ope
Slide 20: Bernie Adcock: US Business: Fresh
US Business: Fresh Bernie Adcock Head of US Fresh 20
Slide 21: An Overview Of Our US Business
US BUSINESS: FRESH An Overview Of Our US Business LARGE 8+ LBS Business Units RETAIL Big Bird/Commercial 6-7 LBS Small Bird Case Ready SMALL 3-5 LBS 24 37 32 ~34K ~6.3M 9B+ FEED MILLS PROCESSING PLANTS HATCHERIES TEAM MEMBERS BIRDS PER DAY LBS PER YEAR 7 PROTEIN CONVERSION 4 PET FOOD Source: PPC 21
Slide 22: An Overview Of Our US Business
US BUSINESS: FRESH An Overview Of Our US Business Breakdown of Breakdown of Breakdown of US Fresh US Sales US Fresh Sales Sales by Channel 6% 4% 10% 5% 24% 37% $10.6B 90% $9.5B 38% $9.5B 53% 33% Fresh Case Ready Retail Value Added Small Bird Food Service Big Bird Other Protein Conversion/Other Expor
Slide 23: US Fresh: Revenue Overview
US BUSINESS: FRESH US Fresh: Revenue Overview $8.2B $9.6B $9.0B $9.5B Market Related 100% Commodity % of U.S. Fresh Sales 75% 50% 2024 Cost Plus 25% 0% 2021 2022 2023 2024 Small Bird Case Ready Big Bird Debone Protein Conversion/Other Negotiated Impact Of Key Customer Tailored By Segment Distinct Pr
Slide 24: U.S. Fresh: Reducing Volatility Through Diversification
US BUSINESS: FRESH U.S. Fresh: Reducing Volatility Through Diversification Adjusted EBITDA Volatility 50% 5,000 4,000 40% 30% 3,000 20% 2,000 Big Bird Debone 10% 1,000 US Fresh Margin* -- Small Bird Protein (10%) (1,000) Case Ready (20%) (2,000) (30%) (3,000) (40%) (4,000) (50%) (5,000) (6,000) (60%
Slide 25: US Fresh Chicken: A Growing, On Trend Market
US BUSINESS: FRESH US Fresh Chicken: A Growing, On Trend Market Affordability – Less expensive compared to other proteins – Relatively lower feed conversion costs Availability – Number one consumed protein – Consistent growth Flexibility – Broad application – Widespread appeal 25
Slide 26: Chicken Provides Convenient And Cost-Effective Meal Solutions
US BUSINESS: FRESH Chicken Provides Convenient And Cost-Effective Meal Solutions For At Home Consumption Ground Beef vs. BSB Chicken 87% $1.80 of home prepared $1.60 Price Spread meals contain meat $1.40 and poultry $1.20 $/LB $1.00 $0.80 $/LB $0.60 $0.40 Top 3 factor in meat $0.20 purchase decision
Slide 27: Versatility Enabling Resilient Category Growth In Away From Home
US BUSINESS: FRESH Versatility Enabling Resilient Category Growth In Away From Home Environment Share of Chicken Orders by Annual Restaurant Sales Order Format Growth by Menu Type Dine-in Takeout Delivery 11% 45% 40% 15% 6% On 95% of Menus Chicken All Other Source: Technomic Special Analysis on Chic
Slide 28: Getting Started: The Supply Chain
US BUSINESS: FRESH Getting Started: The Supply Chain Processing • Yields • Meat Quality Traits • Uniformity • Fertility • Growth • Hatchability GENETIC Breeder Broiler • Feed Conversion • Production IMPROVEMENTS • Uniformity • Persistency Animal • Livability Welfare • Skeletal Strength • Behavior 28
Slide 29: Supply Chain: An Overview
US BUSINESS: FRESH Supply Chain: An Overview Primary Breeder Pullet Farm Breeder Farm • 25 genetic • Orders placed 18 • Roughly one • About 165 eggs companies in months in advance rooster for every per hen 1980s • Five months for ten hens • Egg production • Only two remain hens to reach • Hens typic
Slide 30: Supply Chain: An Overview
US BUSINESS: FRESH Supply Chain: An Overview Hatchery Broiler Farm Broiler Processing Plant • 21 days • Farm typically • Distinct grower • Flexibility limited incubation has three to four programs (NAE, somewhat by bird houses NAIHM, organic, size etc.) • Segmented by live weight 30
Slide 31: Supply Chain: Driving Production
US BUSINESS: FRESH Supply Chain: Driving Production 83.0% 1,300 82.0% Egg sets Hatchability 1,250 81.0% Hatchability 1,200 In billions 80.0% 79.0% 1,150 78.0% 1,100 77.0% 1,050 76.0% 75.0% 1,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 210 bps +5.7% 306 bps Decline In Livability Increase In
Slide 32: Key Considerations: Breeder Selection
US BUSINESS: FRESH Key Considerations: Breeder Selection 75.70% 1.95 Feed Conversion Yield 1.90 75.60% Feed Conversion 1.85 75.50% 1.80 Yield 75.40% 1.75 1.70 75.30% 1.65 75.20% 1.60 75.10% 1.55 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ~65% +$90MM * Percentage of Total Live Cost Value Of 10
Slide 33: Supply Chain: Driving Production
US BUSINESS: FRESH Supply Chain: Driving Production 6.75 48.0 Total Production 46.0 (billions of Pounds) Live Weight Average Live Weight 6.50 44.0 Production (Pounds) 42.0 6.25 40.0 38.0 6.00 36.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 30 bps 1.7% 7.0% Increase In Yields Increase In Avera
Slide 34: An Overview: Attribute Comparisons
US BUSINESS: FRESH An Overview: Attribute Comparisons •100% organic/non-GMO feed Over 33% of fresh •No antibiotics/hormones/steroids retail chicken is ORGANIC •Outdoor access •HFAC Standards •Certified facility sold as Antibiotic Free or Organic* •Cooled via purified air, rather than fresh water Dif
Slide 35: An Example: Reinforcing Strategies
US BUSINESS: FRESH An Example: Reinforcing Strategies Differentiates PPC through Grow Out operational capabilities Program – Grower programs in Live Operations Processing Techniques – Distinct processing techniques (air chill, PPC etc.) Dedicated Reinforced via Key Complex Customer partnerships – De
Slide 36: Case Study: Guntersville, AL (Case Ready)
US BUSINESS: FRESH Case Study: Guntersville, AL (Case Ready) Sales growth driven by Key Customer Partnership – Leading player in Club channel – Expansion given interest in differentiated offering – Existing long-term relationship Enhanced margins through operational excellence – Simplified mix at sc
Slide 37: Unlocking Value For The Consumer To Generate Growth
US BUSINESS: FRESH Unlocking Value For The Consumer To Generate Growth Private Label Organic Pilgrim’s 174% $ Change From 2019 Growing Fresh Retail volume with Key Customers over 140% 3X industry LBS NAE 2019 2020 2021 2022 2023 2024 Air Chill Lbs Net Sales $ 1. Reflects total % change from 2019 to
Slide 38: Case Study: Douglas, GA (Protein Conversion)
US BUSINESS: FRESH Case Study: Douglas, GA (Protein Conversion) Sales growth driven by increased in interest partnerships – Recognition of quality and service levels – Further presence in growing, profitable market Enhanced margins through operational expertise – Leverage existing technical and proc
Slide 39: Key Takeaways: US Fresh Business
US BUSINESS: FRESH Key Takeaways: US Fresh Business Drive Growth • Strengthen Key Customer partnerships through long-term arrangements and investments in distinct operational capabilities • Reinforce quality and service to cultivate existing relationships and attract new partners Enhance Margins • C
Slide 40: What's Next: US Business: Fresh
US BUSINESS: FRESH What’s Next: US Business: Fresh New Small Bird Capacity New Protein Conversion Capacity Drive Enhance Growth Margins Unlocking Shareholder Value Reduce Volatility Convert Big Bird To Case Ready For Key Customers 40
Slide 41: Kendra Waldbusser: US Business: Live Operations
US Business: Live Operations Kendra Waldbusser Head of FSQA & Live Tech Services 41
Slide 42: Biosecurity: Key Considerations
US BUSINESS: LIVE OPERATIONS Biosecurity: Key Considerations Structural Rigorous implementation of biosecurity • Number of Houses principles are essential to preventing disease • Number of Birds Per introduction into our poultry operations House • Proximity of Houses Management • Reducing Foot traff
Slide 43: USDA HPAI Approach
US BUSINESS: LIVE OPERATIONS USDA HPAI Approach • $500 million in investments in biosecurity for poultry, beginning with a focus on egg layers; • $400 million in relief/indemnity for affected farmers; • $100 million for vaccine research and development (including a public-private task force focused
Slide 44: Food Safety & Quality
US BUSINESS: LIVE OPERATIONS Food Safety & Quality Safe people, safe products and • Uncompromising food healthy safety & quality attitudes • 3rd Party Certification from GFSI scheme audits • Regulatory compliance with USDA Food Safety & Inspection Service 44
Slide 45: Animal Welfare
US BUSINESS: LIVE OPERATIONS Animal Welfare Our American Humane Certified Farm program provides third- party, independent audits to help verify that certified entities’ care and handling of farm animals meet our science-based welfare standards. The independent, multi-stakeholder organization that ad
Slide 46: Sergio Nahuz: Driving Profitable Growth: US Prepared Foods Investments
Driving Profitable Growth: US Prepared Foods Investments Sergio Nahuz CMO & Head of Prepared Foods 46
Slide 47: An Overview: US Prepared Foods
US BUSINESS: PREPARED FOODS An Overview: US Prepared Foods Branded vs Sales by Private Label Channel 15% 45% Moorefield, WV 85% 55% Mount Pleasant, TX Waco, TX Branded Away From Home Private Label Retail Source: PPC 47
Slide 48: Prepared Foods: Large And Growing Market
US BUSINESS: PREPARED FOODS Prepared Foods: Large And Growing Market MARKET SCOPE SIZE ($B) ‘19-’24 CAGR Prepared Retail Frozen $3.5 14% Foods: Retail $2B Retail Deli $1.3 4% Commercial $3.1 8% Away Non-Commercial $1.5 3% From Home opportunity National Accounts $4.0 3% to grow Other $0.6 4% Total $1
Slide 49: Case Study: Identifying Where to Play
US BUSINESS: PREPARED FOODS Case Study: Identifying Where to Play 15% CAGR $5.66 $5.33 $4.93 $4.05 $3.70 $2.80 2019 2020 2021 2022 2023 2024 Retail Frozen Chicken Category • 55% of grocery • Top 3 consumer need • Category spans across a variety shoppers are Seeking states: Easy Meals of eating occas
Slide 50: Case Study: Consumer Centric Approach
US BUSINESS: PREPARED FOODS Case Study: Consumer Centric Approach 5-yr Sales Consumer Segments Share Segment Needs CAGR Family Pleasers 29% 10% Family Pleasers Need: Make my family Protein Seekers 17% happy through meals they will love Convenience Seekers 16% Mindful Shoppers 15% +26% Mindful Shoppe
Slide 51: Case Study: Consumer Centric Approach – Meet Olivia
US BUSINESS: PREPARED FOODS Case Study: Consumer Centric Approach – Meet Olivia Mindful consumer I’m not an over-the-top health Age: Millennial nut, but I do care about what I bring into the house for meals: Education: 4+ years of College good quality protein, fresh fruits Living: Urban & Suburban a
Slide 52: Case Study: Just Bare Performance
US BUSINESS: PREPARED FOODS Case Study: Just Bare Performance $53.6 Velocity 104.5% $Growth $/STORE/WK/ITEM (L52 WKS) YoY (L52 WKS) $31.9 $29.5 $26.0 7.7% 4.7% 3.5% JUST BARE CATEGORY PRIVATE TOP 5 JUST BARE CATEGORY PRIVATE TOP 5 BRANDS AVG LABEL BRANDS (X AVG LABEL (X JUST BARE) JUST BARE) • Just
Slide 53: Case Study: Just Bare and Pilgrim's Brands Performance
US BUSINESS: PREPARED FOODS Case Study: Just Bare and Pilgrim’s Brands Performance 10.1% Market Share $ 0.6% 2020 2021 2022 2023 2024 • Both Brands • Pilgrim’s gained 52% of • Just Bare Product Household Penetration Total Distribution in reviews 4.7 average increased from 2.4% to 2024 Vs. Prior Year
Slide 54: Brand Recognition
US BUSINESS: PREPARED FOODS Brand Recognition Organic Publication from allrecipes.com – Dec. 2024 (+10MM Followers) Best of the Best 1 “Looks and tastes Qualifications homemade,” Remarkably ✓ Available Nationwide juicy and the outer crust ✓ Labeled "nuggets” 2 was crisp, with a texture ✓ Basic Recip
Slide 55: Case Study: Away From Home
US BUSINESS: PREPARED FOODS Case Study: Away From Home Away from home is a larger market, more complex and poses a Background variety of operators unmet needs The Approach Understand Build the Execution The Landscape winning Strategy • Category and Operator • Simplify Brand Architecture • Increase r
Slide 56: Case Study: Away From Home Non-Commercial
US BUSINESS: PREPARED FOODS Case Study: Away From Home Non-Commercial Gold Kist Volume Growth 15% CAGR 2021 2022 2023 2024 • We grew by catering • Operators have • Opportunity still to grow brands that appeal to different needs based business nearly 4X in each prioritized on each segment they Non-Co
Slide 57: Key Takeaways: US Prepared Foods
US BUSINESS: PREPARED FOODS Key Takeaways: US Prepared Foods Drive Growth • Significant opportunity for growth across retail and away from home in prepared foods • Strong track record of performance across different brands and channels Enhance Margins • Branded portfolio approach tailored to distinc
Slide 58: What's Next: US Prepared Foods
US BUSINESS: PREPARED FOODS What’s Next: US Prepared Foods Prepared Foods New Capacity Footprint Redesign Drive Enhance Growth Margins Unlocking Shareholder Value Reduce Portfolio Volatility Diversification 58
Slide 59: US Business: Q&A Session
US BUSINESS: FRESH & PREPARED US Business: Q&A Session Fabio Sandri Bernie Adcock Sergio Nahuz Kendra Waldbusser President & CEO Head of US Fresh CMO & Head of Prepared Foods Head of FSQA & Live Tech Services Lisa Burdick Robert Garlington Matt Galvanoni Head of Human Resources Head of Growth Chief
Slide 60: Ivan Siqueira: Europe
Europe Ivan Siqueira President, Pilgrim’s Europe 60
Slide 61: One Pilgrim's Europe Integrated Model
EUROPE One Pilgrim's Europe Integrated Model 2024 – One Pilgrim's Europe Together, we are a leading UK & European food company: $5.1B 20K 40+ Revenue FY24 Team Members Well-invested plants, hatcheries & feed mills #1 UK Private Label #1 UK Prepared manufacturer Foods Producer Market leading meat (OC
Slide 62: Business Categories & Footprint
EUROPE Business Categories & Footprint Other Export 2% United Ireland 9% Well-invested Kingdom 2 production 23 network Revenue across Europe Fresh 23% split by category 66% France Netherlands Added Value 3 1 Integrated business model across Poultry, Pork and Value Added 4 Fresh Chicken 5 Fresh 22 Va
Slide 63: Channel & Customers
EUROPE Channel & Customers Sales Retail Away From Home Exports channels Select private label long term supply contracts Leading European Away From Home partner UK Export across China, Europe, Asia, Africa & Americas B2B / Wholesale Starter to Dessert Solution Partner of choice to all major 56 Global
Slide 64: Product Portfolio: Three Manufacturing Companies Into One
EUROPE Product Portfolio: Three Manufacturing Companies Into One Fresh Added Value Brands Fresh Pork, Bacon, Gammon Fresh & Frozen RICHMOND Coated Chicken Ready To Cook & Sausages UK #1 Sausage brand +8% CAGR v 2019 93% brand awareness Cooked Meats Fresh Ready Meals Fresh Lamb FRIDGE RAIDERS UK #1 F
Slide 65: Case Study: Key Customer Strategy - Poultry
EUROPE Case Study: Key Customer Strategy - Poultry Background The Results • Long standing and positive trading relationship in a shared supply • Customer consistent outperformance of scenario +1.5 share points vs the market • Secured 100% sole supply status for 10 years – a first in the industry • E
Slide 66: Case Study: Strategy of Integration
EUROPE Case Study: Strategy of Integration Background The Results Operated as 3 standalone companies Footprint Mix with 31 operating factories New Retail lines Reduced over 500 The Approach Integration all companies into one with new business structure roles consolidate 2 27 new countries and sites
Slide 67: Profit Margins Improvements From 3.3% - 5.1%
EUROPE Profit Margins Improvements From 3.3% - 5.1% Poultry Business Developent Historical Development Volume (Tons) Adjusted Operating Income [USD m] Adjusted Operating Income [USD mm] 263 (5.1%) 5,203 5,137 172 420.8 (3.3%) 402.7 2023 2024 2023 2024 Source: PPC 67
Slide 68: Our Business Model
EUROPE Our Business Model Diversified Business Portfolio > Business Model: Pricing Approach Reduce volatility Adjusted Operating Income [USD m] 35%-40% Fresh Value Chicken Brands Added & Pork 60%-65% Cost Plus Market Models: • Long term contract based on Cost of Production • Raw material pass throug
Slide 69: Growth Strategy
EUROPE Growth Strategy Diversify & Grow through: • Value Added / Branded Grow • Innovation • Accretive acquisitions Strengthen & grow core Enhance Key customer mix Enhance Leverage advantage Expand offerings Continue to Integrate and Optimize 69
Slide 70: Key Market Performance & Consumer Trends
EUROPE Key Market Performance & Consumer Trends Key Market Sizes $101.0bn $93.9bn $78.4bn Food Service $319.9bn $311.9bn $338.9bn $25.1bn Retail Grocery $8.8bn $25.3bn $69.6bn UK Ireland France Netherlands Germany Key Market Performance 4.9% 4.5% Value Growth 3.5% 2.3% Retail 0.2% Volume/Food Servic
Slide 71: Our Categories Are Performing Strongly, And There Is Headroom For Growth
EUROPE Our Categories Are Performing Strongly, And There Is Headroom For Growth UK Retail Category Market Performance UK Food Service Market Coated and Slow Fresh and Key GB Other Food Service Cooked driving growth 7.3% premium brands driving meals driving growth growth Contract Catering Chicken low
Slide 72: Branded Growth Strategy
EUROPE Branded Growth Strategy Win In Our Expand Into Expand Channel Expand Into Build & Buy Heartland New Categories Presence New Markets New Brands Further expansion in retail & food service Oakhouse dispensers Into Stadiums and Cinemas Into Universities 72
Slide 73: Key Takeaways: Europe
EUROPE Key Takeaways: Europe Drive Growth • Strong European platform created for growth • Strengthening and growing the core, enhancing mix and expanding offer into more value added • Branded growth and innovation model with new product development • Grow export into new markets and grow food servic
Slide 74: Jesus Munoz: Mexico
Mexico Jesus Munoz President, Pilgrim’s Mexico 74
Slide 75: An Overview Of Our Mexico Business
MEXICO An Overview Of Our Mexico Business Background • Started operations in Mexico in 1988 Footprint • 12,100 Team members • 2nd Largest Chicken Industry • 25% Mkt Share • Revenues of 2.1B USD • Vertically integrated • National coverage - 100% North Complex Live 3 Fresh Plants Operations 2 Prepared
Slide 76: An Overview Of Our Mexico Business
MEXICO An Overview Of Our Mexico Business Breakdown of Mexico Sales Breakdown of Channel Mix 10% 3% 14% 29% 27% 90% 27% Fresh Retail Wholesaler Value Added Away From Home Live Sales QSR Source: PPC 76
Slide 77: Mexico: Channel Overview
MEXICO Mexico: Channel Overview Retail USD$ Food Service USD$ 2.2X 2.3X $263 $582 $132 $295 2019 2024 2019 2024 QSR USD$ Commodity (Wholesalers and Live Sales) USD$ 3.5X 38% $19 $67 $891 $1,226 2019 2024 2019 2024 77
Slide 78: Key Customer: Examples
MEXICO Key Customer: Examples Retail Food Service QSR 78
Slide 79: Commercial Strategy: Reducing Volatility
MEXICO Reducing Volatility Commercial Strategy: Increasing sales in strategic channels and reducing sales in commodity Commodity vs Strategic Channel (USD$) products to reduce volatility 61% 58% 56% 75% 71% 68% 66% 63% 34% 37% 39% 42% 44% 25% 29% 32% 2017 2018 2019 2020 2021 2022 2023 2024 Strategic
Slide 80: Pilgrim's Brand Performance
MEXICO Pilgrim’s Brand Performance Pilgrim’s brand Pilgrim’s Branded Products Sales has a wide variety of (M USD$) products and customer solutions for every consumer at every level 2.9 X $105 $309 2019 2024 Pilgrim’s branded product portfolio: Pilgrim’s brands grew +20% CAGR Source: Pilgrim´s México
Slide 81: Other Brands
MEXICO Other Brands Just Bare is a healthy protein Brand Brand with 16 years in the market, we Alamesa is a brand that all about focused on quality providing quality have established ourselves as the leading ready meals that bring authentic protein and nutrition. brand in the category, becoming a fl
Slide 82: The Opportunity: Mexico Poultry Industry
MEXICO The Opportunity: Mexico Poultry Industry Poultry Industry Value MXP Consumption 40 PRODUCT VOLUME (TONS) VALUE MXP 35 Per Capita 35.11 Kg Chicken 4,063,000 156,149 30 Per Capita 23.23 Kg 25 Egg 3,019,474 87,966 Per Capita 21.00 Kg 20 Turkey 8,461 1,220 Per Capita 15.3 Kg 15 TOTAL 7,090,935 24
Slide 83: The Opportunity: Mexico Poultry
MEXICO The Opportunity: Mexico Poultry Production and imports of chicken 5.3 42.0 40.0 4.8 4.63 4.54 4.35 38.0 4.27 Thousands of tons 4.3 4.12 4.14 .70 36.0 3.9 3.99 .69 .59 Kilograms 3.78 .61 3.8 3.65 .57 .55 35.11 34.0 3.43 .52 .52 33.77 34.78 3.29 .50 33.47 32.0 .48 33.00 32.87 3.3 .42 31.86 32.2
Slide 84: Growth Plans: Main Projects
MEXICO Growth Plans: Main Projects 84
Slide 85: Growth Plans: Sample Projects
MEXICO Growth Plans: Sample Projects New Hatchery and Processing Feed Mill Plant Plant Veracruz Veracruz Grandparents Prepared Foods New Farms for Expansion Female and Male and Incubator Expansion in Saltillo New Broiler and Breeders Farm South Complex Building of 20 Broiler Farms in Veracruz and Mé
Slide 86: Key Takeaways: Mexico
MEXICO Key Takeaways: Mexico Drive Growth • Recognize robust demand for chicken, especially in retail channels • Maintain investments in capacity to serve growth in long term demand for protein Enhance Margins • Upgrade product mix to minimize reliance on whole chicken offerings • Leverage scale in
Slide 87: What's Next: Mexico
MEXICO What’s Next: Mexico Expand Prepared Foods Processing Plants & Fresh Capacity Automation Drive Enhance Growth Margins Add Small Bird Unlocking Capacity Shareholder Value Reduce Volatility Continue Reinforcing Brand Awareness 87
Slide 88: International Management Q&A
INTERNATIONAL BUSINESS: EUROPE & MEXICO International Management Q&A Fabio Sandri Matt Galvanoni Ivan Siqueira Jesus Munoz President & CEO Chief Financial Officer President, Pilgrim’s President, Pilgrim’s Europe Mexico 88
Slide 89: Andrew Rojeski: Sustainability
Sustainability Andrew Rojeski Head of Strategy, Investor Relations, & Sustainability 89
Slide 90: Sustainability: An Overview
SUSTAINABILITY Sustainability: An Overview ENVIRONMENT ENVIRONMENT ENVIRONMENT Energy & Emissions Energy & Emissions Water Reduce Scope 1 & 2 Reach 60% Reduce water use GHG emission renewable intensity by 2030 intensity by 30% 20% reduction electricity 14.2% of the vs. 2019 baseline 6% increase by 2
Slide 91: Making It Happen: Sustainability
SUSTAINABILITY Making It Happen: Sustainability Complex Level Corporate Board Level • Approved 113 global GHG • Linked senior level • Separate Sustainability emission reduction projects compensation to Sustainability Committee though year-end 2022 targets • Gives guidance on • Established KPIs for e
Slide 92: Making It Happen: Sustainability
SUSTAINABILITY Sumter, SC Making It Happen: Sustainability Renewable Natural Gas Partnership with GreenGas USA PPC Global Operations (GHG Intensity) 0.0140 0.0125 GHG Tons per 100 pounds/product 0.0120 0.011 0.0105 0.0103 0.0100 0.0088 0.0080 0.0060 0.0040 0.0020 0.0000 2019 2023 Ideal 2023 2025 203
Slide 93: Matt Galvanoni: Finance
Finance Matt Galvanoni Chief Financial Officer 93
Slide 94: Total Shareholder Return
FINANCE Total Shareholder Return Evolution of $100 invested – Total Shareholder Return 180 $169 160 140 $146 120 100 80 $78 60 40 20 - PPC Peer Group Russell 2000 Notes: Peer Group Includes Tyson and Hormel 94
Slide 95: Net Sales Growth
FINANCE Net Sales Growth Net Sales ($MM) 9.4% CAGR 20,000 17,468 17,362 17,878 14,777 15,000 12,092 11,409 10,000 5,000 - 2019 2020 2021 2022 2023 2024 U.S. Europe Mexico Source: PPC 95
Slide 96: Adjusted EBITDA Growth
FINANCE Adjusted EBITDA Growth Adjusted EBITDA ($MM) 17.9% CAGR 2500 2,214 2000 1,648 1500 1,289 974 1,034 1000 788 500 0 2019 2020 2021 2022 2023 2024 Source: PPC 96
Slide 97: How We Measure "The Best"?
FINANCE How We Measure “The Best”? Adjusted Operating Income the last 2 years 7.4% 8.8% 9.0% 5.2% 4.7% 3.4% Competition PPC Competition PPC Competition PPC Notes: US is Tyson Chicken vs. Pilgrim’s-US; Mexico is Bachoco vs. Pilgrim’s-Mexico; Europe is the average of Cranswick, Bakkavor and 2 Sisters
Slide 98: Extensive Record Of Industry Leading Performance
FINANCE Extensive Record Of Industry Leading Performance US Chicken Comparison PPC better past 20% 15 of 16 quarters 15.9% 15.4% 15% 14.2% Adjusted Operating 13.8% 12.6% 11.5% Income % 10% 8.4% 7.8% 8.2% 8.4% 7.3% 7.0% 7.5% 6.2% 5.0% 4.5% 5.0% 5% 3.5% 4.8% 3.9% 3.9% 3.0% 1.8% 2.1% 1.8% 0.8% 0.2% 0%
Slide 99: Capital Expenditures – Investing In Our Business
FINANCE Capital Expenditures – Investing In Our Business 1,000 800 Amount ($MM) 600 544 487 476 348 355 382 400 200 - 2019 2020 2021 2022 2023 2024 “Maintenance” Capital of roughly $400MM per year Source: PPC 99
Slide 100: Capital Allocation Priorities: Dividend Excess Cash
FINANCE Capital Allocation Priorities: Dividend Excess Cash Record Date April 3rd, 2025 Cash distribution of Dividend $6.30 per share $1.5 Billion Pay Date April 17th, 2025 100
Slide 101: Generating Cash / Shareholder Value
FINANCE Generating Cash / Shareholder Value Generated greater Invested on than $5 Billion of average over Cash Flow From $430 Million of Operations over last CapEx per year 6 years over last 6 years $1.5 Billion Dividend $950 Million in 2025; $3.7 Billion acquisition of in cumulative Pilgrim’s divid
Slide 102: Strong Balance Sheet
FINANCE Strong Balance Sheet Additional $1.1 Proforma year-end Billion of additional 2024 leverage ratio Liquidity available of 1.2x following through Revolving $1.5 billion dividend Credit Facilities Earliest Debt Balance sheet Maturity tower is remains flexible 2031 for strategic M&A Source: PPC 1
Slide 103: Capital Allocation Priorities
FINANCE Capital Allocation Priorities Invest to Maintain Preserve Return to Reinforce our Investment Flexibility for Shareholders Strategies Grade Rating Strategic M&A Unlock Reduce Growth Margins Volatility • Long-Term Key Customer • Working Capital • Net Leverage Partnerships Management ratio targ
Slide 104: Capital Allocation: Strategic M&A
FINANCE Capital Allocation: Strategic M&A • Grow / Upgrade our Chicken and Protein Portfolio in current regions and leverage Key Customer relationships • Grow our Prepared Foods Operations – Acquire complimentary branded food companies that can further diversify our portfolio • Selectively expand in
Slide 105: Key Takeaways: Finance
FINANCE Key Takeaways: Finance Drive Growth • Organic growth projects in the US and Mexico – estimated $350MM growth CAPEX in 2025 • Momentum in branded offerings across all regions • M&A opportunities across proteins • Identify investments to meet ROCE and payback targets Enhance Margins • Distinct
Slide 106: Fabio Sandri: Wrap Up
Wrap Up Fabio Sandri President & CEO 106
Slide 107: Key Projects for Next Years
CLOSE Key Projects for Next Years United States Mexico Europe Conversion of Big Bird Plant to New Small Bird Geographic Further Business Case Ready for Capacity Expansion Integration Key Customers New Prepared New Protein Prepared Foods Foods Capacity Conversion Growth Capacity Enhance Drive Enhance
Slide 108: What's Next: 2025 & Beyond
CLOSE What’s Next: 2025 & Beyond Support Key Customers Growth Grow our Branded and Drive Enhance Value Added Products Growth Add Small Bird Margins Capacity Unlocking Shareholder Improve our Portfolio Value Strategic Acquisitions Reduce Volatility 108
Slide 109: Our Vision, Strategy, Methods & Values
CLOSE Fill up slide with the graphics below – look to small, too much white space Our Vision, Strategy, Methods & Values RELENTLESSLY PURSUE ROOT CAUSE DETERMINATION SIMPLICITY AVAILABILITY HUMILITY DRIVE OWNERSHIP MAKE DECISIONS AND BASED ON ACCOUNTABILITY KNOWLEDGE, DEEPER FACTS AND DATA SINCERITY
Slide 110: Management Q&A
Q&A Management Q&A Ivan Siqueira Fabio Sandri Matt Galvanoni Bernie Adcock Sergio Nahuz President, Pilgrim’s President & CEO Chief Financial Officer Head of US Fresh CMO & Head of Europe Prepared Foods Jesus Munoz Kendra Waldbusser Lisa Burdick Robert Garlington Andrew Rojeski President, Pilgrim’s M