Goldman Sachs Agricultural Biotech Forum New York, NY. March 7, PDF Free Download

1 Goldman Sachs Agricultural Biotech Forum New York, NY March 7, 2012

2 Forward Looking Statement Warning This presentation contains forward-looking statements about the business, financial condition and prospects of the Company. The actual performance of the Company could differ materially from that indicated by the forward-looking statements because of various risks and uncertainties. These risks and uncertainties are described in our most recent Annual Report on Form 10-K.

The Company 3

4 We Are a Leading Chicken Producer Organized in 1947 Incorporated in 1955 Who We Are Vertically integrated in 1961 Initial public offering in 1987 4 th largest poultry processor in the U.S. Current processing capacity of 9.375MM head/week

Balanced Asset Base Poultry Plants Big Bird Deboning Full Capacity/ Per Week (1) Hazlehurst, MS 1961 625,000 NC II Kinston, NC Laurel, MS 1965 625,000 Hammond, LA 1974 625,000 Collins, MS 1981 1,250,000 Waco, TX 2007 1,250,000 Waco, TX McComb, MS Jackson, MS Hazlehurst, MS NC II (2) 1,250,000 Total 5,625,000 Retail McComb, MS 1993 1,250,000 Moultrie, GA Bryan, TX 1997 1,250,000 Note: Moultrie, GA 2005 1,250,000 Kinston, NC 2011 1,250,000 Total 5,000,000 Expected Capacity 10,625,000 Prepared Chicken Plant Jackson, MS 1986 (1) Capacity measured in head/week. (2) Announced; No construction date set. Collins, MS Laurel, MS Hammond, LA Bryan, TX Big Bird Deboning Plants Retail Tray Pack Plants Prepared Chicken Plant 5

6 Strong Track Record of Organic Growth Pounds Processed (Millions) 3,500 Pounds Processed 3,000 2,500 2,441 2,426 2,567 2,805 2,849 2% 3,001 5% 3,001 0% 2,000 1,500 1,000 500 722 795 10% 986 24% 1,077 9% 1,167 1,308 8% 12% 1,437 1,530 10% 6% 1,580 3% 1,802 2,025 14% 12% 21% (1%) 6% 9% 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E Current Capacity Proposed Incremental Capacity

7 Key Strengths Low Cost Producer As one of the industry s most efficient producers, well positioned to capture share Favorable Product Mix New plant focused on higher margin tray pack / retail markets Attractive Growth Profile Track record of generating strong internal growth History of delivering above industry average returns Strong Balance Sheet Managed and maintained appropriate capital structure Strong balance sheet enables growth even during industry downturns

8 Strong Portfolio of Customers Prepared Foods / Foodservice DELI DELI

9 Strong Portfolio of Customers Retail

10 Favorable Product Mix Operating Margin / Head (Cents) (1) Shift to Higher Margin Foodservice Market 80 70 60 50 40 30 20 10 0 (10) (20) (30) Mix (%) Tray Pack / BBD 2003 2004 2005 2006 2007 2008 2009 2010 2011 69/31 59/41 57/43 53/47 55/45 49/51 46/54 46/54 48/52 Source: Agri Stats, Company Filings Note: (1) Industry average. Small Bird Tray Pack Big Bird Deboning

11 Export Destinations (SAFM) 2011 Sales Pounds 573,993,439 2011 Gross Sales Dollars $253,819,568.84 Other 19% Russia 18% Other 19% Russia 17% Mexico 21% Former Soviet Union 30% China/Hong Kong 12% Mexico 14% China/Hong Kong 21% Former Soviet Union 29%

Market Overview 12

13 Current Market Overview Broiler egg sets have been declining year over year since July; Pullet placements have been lower than prior year every month since July 2011. Cold storage inventories improving; January inventories down significantly Retail grocery demand remains steady Food service demand remains weak; Jobs and high priced gasoline are the key; unemployment remains a drag Corn and soybean meal prices remain significantly higher than historical averages Export market steady

Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Oct-11 Nov-11 Dec-11 Jan-12 14 Pullet Placements Potential Breeder Placements 120% 115% 110% 105% 100% 95% 90% 85% 80% Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 108% 106% 104% 102% 100% 98% 96% 94% 92% Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Source: USDA % of Prior Year Broiler Eggs Set Source: USDA % of Prior Year Avg. Weekly Broiler Egg Sets 110% 220 108% 106% 104% 102% 215 210 208.6 211.9 210.8 214.8 208.8 205.6 100% 205 98% 96% 200 200.3 198.7 94% 92% 195 194.0 90% 190 2004 2005 2006 2007 2008 2009 2010 2011 2012YTD Source: USDA Current Year Prior Year Source: USDA

15 Intended Placements: Broiler-Type Pullet Chicks for Hatchery Supply Flocks by Month and Total, 2009-12 2010 2011 2012 Cumulative Potential Placements Month Pullet Chicks Hatched as % of as % of as % of Relative to Current Supply Flocks 2009 2010 2011 7-15 Months Earlier 2009 2010 2011 2012 2009 2010 2011 2012 1,000 1,000 1,000 1,000 Percent Percent Percent 1,000 1,000 1,000 1,000 US Placements Jan 7,142 6,637 6,989 6,711 93 105 96 65,952 62,833 62,996 64,366 Feb 7,215 7,021 7,107 97 101 65,444 62,005 63,283 63,934 Mar 6,773 6,673 7,058 99 106 65,535 62,142 63,250 63,578 Apr 6,240 6,825 7,044 109 103 65,173 62,672 63,751 63,464 May 7,658 8,351 7,721 109 92 65,203 61,918 63,990 62,764 Jun 7,157 7,128 7,211 100 101 64,693 62,049 64,558 62,547 Jul 6,214 6,675 6,444 107 97 64,183 61,903 64,656 61,927 Aug 7,163 7,313 7,233 102 99 64,206 62,300 64,820 61,594 Sep 7,110 7,128 6,657 100 93 63,204 61,663 63,576 Oct 6,388 6,876 6,289 108 91 62,823 61,179 63,506 Nov 7,346 7,589 6,890 103 91 62,601 61,790 63,875 Dec 6,627 6,771 6,438 102 95 62,562 62,978 64,283 Annual Total 83,033 84,987 83,081 102 98

16 USDA Broiler-Type Eggs Set (in thousands) Week Ending 2008 2009 2010 2011 2012 Week Ending 2008 2009 2010 2011 2012 Jan 07 215,444 201,843 202,247 205,419 193,220 Jul 07 211,457 202,101 206,138 195,484 Jan 14 216,467 203,806 200,307 205,099 193,079 Jul 14 211,369 204,579 209,753 196,969 Jan 21 217,697 201,674 202,034 204,116 193,909 Jul 21 209,872 201,353 208,724 195,571 Jan 28 218,880 198,417 202,304 203,933 193,924 Jul 28 207,229 201,806 208,549 194,922 Feb 04 217,271 201,805 204,076 205,787 193,143 Aug 04 207,161 200,277 207,588 195,866 Feb 11 218,479 202,817 205,734 204,337 195,093 Aug 11 207,095 201,307 206,602 194,913 Feb 18 219,311 204,603 206,981 207,150 194,366 Aug 18 206,837 200,665 207,381 193,728 Feb 25 219,830 206,753 207,365 206,633 195,225 Aug 25 204,988 200,648 206,575 193,461 Mar 03 219,337 202,111 206,494 208,530 Sep 01 201,630 195,627 203,941 189,765 Mar 10 219,153 203,708 205,825 207,787 Sep 08 197,833 193,228 204,833 185,742 Mar 17 215,850 201,053 207,915 208,563 Last 6 weeks Sep 15 193,569 187,892 196,963 180,043 Mar 24 214,627 200,465 205,735 209,382 2012 vs 2011 Sep 22 198,742 193,476 205,808 188,278 Mar 31 217,082 204,257 204,921 208,037 94.6% Sep 29 188,431 183,016 197,354 182,234 Apr 07 217,082 203,712 209,257 208,503 Oct 06 194,566 190,600 200,470 186,672 Apr 14 215,758 203,819 206,893 208,972 Oct 13 188,802 186,101 196,697 182,402 Apr 21 214,262 202,068 207,422 209,518 Oct 20 191,280 188,815 200,202 184,019 Apr 28 214,943 201,582 207,319 207,806 Oct 27 185,975 182,901 200,781 185,891 May 05 215,106 204,581 209,188 208,427 Nov 03 193,091 190,700 199,721 187,040 May 12 218,063 205,499 210,586 206,932 Nov 10 202,149 201,573 204,203 194,710 May 19 217,208 205,375 211,658 207,102 Nov 17 203,681 201,906 205,716 195,705 May 26 216,910 206,039 211,315 206,506 Nov 24 204,719 202,644 207,175 195,228 Jun 02 217,504 206,916 211,771 205,765 Dec 01 200,741 201,274 203,973 194,665 Jun 09 212,986 205,567 211,108 205,208 Dec 08 205,041 205,271 205,282 195,373 Jun 16 213,178 204,273 210,421 200,369 Dec 15 203,388 204,677 205,187 195,088 Jun 23 210,187 202,562 211,324 199,072 Dec 22 202,493 203,723 205,240 195,867 Jun 30 207,613 201,322 207,492 197,842 Dec 29 202,760 202,676 203,224 193,364 Average 208,560 200,297 205,688 198,650 193,995

17 USDA Young Chickens Slaughtered by Month and Total, 2010-2012 2011 2012 2011 2012 Month Head as % of as % of Live Pounds as % of as % of 2010 2011 2010 2011 2010 2011 2012 2010 2011 2012 1,000 1,000 1,000 % % 1,000 Avg Wt 1,000 Avg Wt 1,000 Avg Wt % % Jan 672,760 713,525 706,114 106 99 3,792,553 5.64 4,176,056 5.85 4,122,182 5.84 110 99 Feb 651,808 659,576 101 3,665,827 5.62 3,801,465 5.76 104 Mar 748,976 764,174 102 4,221,224 5.64 4,396,639 5.75 104 Apr 714,528 686,642 96 4,059,900 5.68 3,953,065 5.76 97 May 705,876 744,281 105 4,032,638 5.71 4,321,652 5.81 107 Jun 744,289 752,135 101 4,188,690 5.63 4,367,997 5.81 104 Jul 730,328 696,188 95 4,082,633 5.59 4,009,553 5.76 98 Aug 768,661 768,203 100 4,280,964 5.57 4,442,005 5.78 104 Sep 754,528 721,599 96 4,330,879 5.74 4,238,156 5.87 98 Oct 723,588 701,599 97 4,250,241 5.87 4,124,746 5.88 97 Nov 709,715 666,201 94 4,171,929 5.88 3,879,516 5.82 93 Dec 724,479 658,722 91 4,238,450 5.85 3,809,326 5.78 90 Annual 8,649,536 8,532,845 706,114 99 49,315,928 5.70 49,520,176 5.80 4,122,182 5.84 100 Source: NASS, USDA - Poultry Slaughter Report

19 160,000 Breasts & Breast Meat Total Frozen Chicken United States Cold Storage Stocks, 2009-2012 90,000 Wings 150,000 80,000 140,000 130,000 120,000 110,000 100,000 70,000 60,000 50,000 40,000 30,000 20,000 90,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2011 2010 2009 2012 2011 2010 2009 140,000 Leg Quarters 27,000 Whole Chickens 130,000 120,000 25,000 110,000 23,000 100,000 21,000 90,000 80,000 19,000 70,000 17,000 60,000 50,000 15,000 40,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 13,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2011 2010 2009 2012 2011 2010 2009

Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 Jan-08 Jan-08 Mar-08 Mar-08 May-08 May-08 Jul-08 Jul-08 Sep-08 Sep-08 Nov-08 Nov-08 Jan-09 Jan-09 Mar-09 Mar-09 May-09 May-09 Jul-09 Jul-09 Sep-09 Sep-09 Nov-09 Nov-09 Jan-10 Jan-10 Mar-10 Mar-10 May-10 May-10 Jul-10 Jul-10 Sep-10 Sep-10 Nov-10 Nov-10 Jan-11 Jan-11 Mar-11 Mar-11 May-11 May-11 Jul-11 Jul-11 Sep-11 Sep-11 Nov-11 Nov-11 Jan-12 Jan-12 Mar-12 Mar-12 21 UB Boneless Skinless Breast UB Breast Tenders 1.8000 2.0000 1.7000 1.6000 5 Year Average - 1.3673 1.8000 5 Year Average - 1.3972 1.5000 1.6000 1.4000 1.4000 1.3000 1.2000 1.2000 1.1000 1.0000 1.0000 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 0.8000 1.9000 UB Jumbo Wings 0.6000 UB Leg Quarters 1.7000 0.5500 0.5000 1.5000 0.4500 1.3000 0.4000 0.3500 1.1000 0.3000 0.9000 5 Year Average 1.1389 0.2500 0.2000 5 Year Average -.4150 0.7000 0.1500 0.5000 0.1000 Source: Urner Barry

CBOT - CORN 22

CBOT SOYBEAN MEAL 23

Financial Summary 24

Strong Track Record of Financial Performance Pounds Sold Operating and Net Margin (MM) 3,000 2,500 2,000 1,500 1,000 500 0 2,800 2,399 2,463 2,581 2,049 1,449 1,095 1,809 1,580 2003 2004 2005 2006 2007 2008 2009 2010 2011 EPS 25% 20% 15% 10% 5% 0% -5% -10% -15% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Gross Profit Operating Income Net Income ($/Share) 8.00 6.00 4.00 2.00 0.00 (2.00) (4.00) (6.00) (8.00) 6.07 2.78 4.62 3.53 3.91 3.94 (0.57) (2.13) (5.74) 2003 2004 2005 2006 2007 2008 2009 2010 2011 25

26 Capital Expenditures $160 $140 $120 $100 $80 $60 $40 $20 $0 42.1 23.7 28.6 16.6 14.6 92.3 15.1 24.2 4.8 9.4 15.2 88.2 19.7 23.4 27.5 29.0 20.7 26.2 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Maintenance Waco Complex General Office Foods Collins Expansion Georgia Complex Kinston Complex 8.1 40.7 25.4 107.7 37.1 18.6 44.4 37.6

Goldman Sachs Agricultural Biotech Forum New York, NY. March 7, 2012