Slide 1: Financial Results for Fourth Quarter and Year Ended Dec 27, 2015
Pilgrim’s Pride Corporation Financial Results for Fourth Quarter and Year Ended Dec 27, 2015
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: After Expanding, Egg Sets Finished Unchanged to 2014
After Expanding, Egg Sets Finished Unchanged to 2014 Source: USDA 3 211,630 190,289 207,175 207,114 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 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
Slide 4: Placements Lower than 2014 and Close to 5-yr Avg
Placements Lower than 2014 and Close to 5-yr Avg Source: USDA 4 174,621 156,056 170,921 170,289 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 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: Jumbo Bird Accounts for All Growth in Slaughter
Jumbo Bird Accounts for All Growth in Slaughter Source: USDA 5 Down 1% Up 11%
Slide 6: Despite Increasing Pullet Placements, Breeder Growth Still Modest
Hatching layer growth remains moderate despite volatility in pullet placements. Pullet placements up 7.0% YTD. Hatching layers in Dec were up 3.0% from a year ago, up 2.9% YTD. Egg production flattish. Despite Increasing Pullet Placements, Breeder Growth Still Modest Source: USDA 6
Slide 7: Cold Storage High but Starting to Decline
Cold Storage High but Starting to Decline Source: USDA Overall inventories higher than 2014 but bigger leg quarter and breast meat inventories being reduced. Big bird production are already starting to decline. 7
Slide 8: Cutout Values Improving and Contract Still at Strong Levels
Cutout Values Improving and Contract Still at Strong Levels Source: PPC 8 Cutout Values
Slide 9: Wholesale Chicken Prices
Wholesale Chicken Prices Source: USDA 9
Slide 10: Corn Stocks Still at High Levels
Corn Stocks Still at High Levels Global stocks up slightly from last year as harvest remains plentiful. At 21.6%, stocks to use global inventories will be at one of historically highest levels. Source: USDA 10
Slide 11: Global Soybean Inventories Expanding
Global Soybean Inventories Expanding Record crops in US, Brazil and Argentina all contributing to record global stocks for oilseeds. Stocks/Use globally also at historically high level. Source: USDA 11
Slide 12: Fiscal Year 2015 Financial Review
Fiscal Year 2015 Financial Review Stability in full-year margin performance due to portfolio strategy of well-balanced product mix and broad customer segments. SG&A higher than FY-14, due to the addition of the Mexico acquired operations (PPC-Norte). Adjusted FY-15 EBITDA of $1.21B (14.9% marg
Slide 13: Fourth Quarter 2015 Financial Review
Fourth Quarter 2015 Financial Review Source: PPC Solid Quarter despite tough Mexico, challenging exports, strong USD, and pressure from cutout values. SG&A higher than Q4-14, due to the addition of the Mexico acquired operations (PPC-Norte). Adjusted EBITDA 59% lower than Q4-14 due to pressure
Slide 14: Net Debt Remains Low
Net Debt Remains Low Source: PPC Free Cash flow generation of $88MM in the quarter. Net debt multiple remains low at 0.49x LTM EBITDA (post PPC-Norte purchase). 14 307.1 805.4 379.1 307.1 Mexico Acquisition
Slide 15: Fourth Quarter 2015 Capital Spending
Fourth Quarter 2015 Capital Spending Capex (US$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. 15
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 December 27, 2015 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended Decemb
Slide 19: Appendix: Reconciliation of EBITDA Margin
Appendix: Reconciliation of EBITDA Margin Source: PPC EBITDA margins have been calculated using by taking the unaudited EBITDA figures and income statement components, then dividing by Net Revenue for the applicable period. 19 PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) T
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: 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