Slide 1: Pilgrim's Pride Corporation Financial Results for Third Quarter Ended Sep 25, 2016
Pilgrim’s Pride Corporation Financial Results for Third Quarter Ended Sep 25, 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 Up Slightly YTD vs Last Year
Eggs Sets Up Slightly YTD vs Last Year Source: USDA 3 211,832 190,260 211,576 198,811 200,998 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 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
Slide 4: Placements Averaging Mostly Flat vs 2015
Placements Averaging Mostly Flat vs 2015 Source: USDA 4 174,769 156,050 174,543 162,442 168,915 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 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
Slide 5: Benign Layer Flock Supportive of Modest Growth in Production
Benign Layer Flock Supportive of Modest Growth in Production Source: USDA 5
Slide 6: Jumbo Bird Accounting For Larger Share
Jumbo Bird Accounting For Larger Share Source: USDA 6
Slide 7: Hatching Layers Remain Flat YTD, Placements Lower in Sep
Hatching layers fell in Sep and remain flat YTD from a year ago. Pullet placements declined 18% in Sep, and YTD are now better reflecting changes in layer flock size. Hatching Layers Remain Flat YTD, Placements Lower in Sep Source: USDA 7
Slide 8: Cold Storage Levels Slowly Declining
Cold Storage Levels Slowly Declining Source: USDA Overall inventories 3.9% lower than 2015 levels. Leg Quarters continue to remain lower year on year driven by strong exports. 8
Slide 9: Cutout Values Remain Ahead of 2015 while Contracts Still Firm
Cutout Values Remain Ahead of 2015 while Contracts Still Firm Source: PPC 9 Cutout Value
Slide 10: Leg Quarters Improved vs 2015, Other Parts In-line with Normal Seasonality
Leg Quarters Improved vs 2015, Other Parts In-line with Normal Seasonality Source: USDA 10
Slide 11: Corn Stocks at Record High Levels
Corn Stocks at Record High Levels Global stocks hitting record 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 11
Slide 12: Global Soybean Inventories Increasing
Global Soybean Inventories Increasing Global inventories of soybeans remain high and above 2015 levels. Demand for oilseed products estimated to narrow slightly in 2016. Source: USDA 12
Slide 13: Third Quarter 2016 Financial Review
Third Quarter 2016 Financial Review Respectable Q3 performance: MX environment weaker Q/Q but consistent with seasonality; synergy capture on track. U.S. solid but impacted by downtime due to slower than expected ramp at largest PF plant. SG&A also positively impacted by MX synergies. Adjusted
Slide 14: Balance Sheet Strong, With Plenty of Room for Strategic Investments
Balance Sheet Strong, With Plenty of Room for Strategic Investments Source: PPC Cash Flow From Operations generation of $242MM in the quarter. Net debt multiple remains low at 1.05x LTM EBITDA, despite $700MM special dividend payment paid in Q2. 14 307.1 307.1
Slide 15: Third Quarter 2016 Capital Spending
Third Quarter 2016 Capital Spending Capex (US$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. New strategic projects will support key customers growth and de-emphasize our expos
Slide 16: 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 16
Slide 17: 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 18: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA Source: PPC The summary unaudited consolidated income statement data for the twelve months ended September 25, 2016 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended Septem
Slide 19: 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. 19 PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) Thirteen Weeks Ended Thirty-Nine
Slide 20: 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: 20 PILGRIM'S PRIDE CO
Slide 21: 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: 21 PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended September 25, 2016 Septem
Slide 22: 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 23: Appendix: Segment and Geographic Data
Appendix: Segment and Geographic Data Source: PPC 23 PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data Thirteen Weeks Ended Thirty-Nine Weeks Ended September 25, 2016 September 27, 2015 September 25, 2016 September 27, 2015 (Unaudited) (In thousands) Sources of net sales