Hormel Foods : Taste of Hormel Foods Q2 2020

GROWING OUR BUSINESS BY INVESTING IN BRANDS CONSUMERS TRUST

Jim Snee

KEEPING OUR TEAM MEMBERS SAFE

Jim Snee, chairman of the board, president, and chief executive ocer

OF HORMEL FOODS

TASTEQ2 2020 Performance Review

"I have the highest level of confidence that we have the right strategy, sound fundamentals,best-in-classmanagementand the financial strengthto thrivein this dynamic marketplace. I appreciate the work happening across all areas of our company."and know we will continue to do what is bestfor our team members and customers

Q2 PERFORMANCE SUMMARY
ORGANIC	ORGANIC	DILUTED
VOLUME1	NET SALES1	EPS
1.2B LBS	$2.4B	$0.42
+7%	+6%	-9%2

GENERATING STRONG AND STABLE CASH FLOWS TO MEET OUR CAPITAL NEEDS

CASH FLOW FROM	OPERATING FREE
OPERATIONS	CASH FLOW1
$360M	$280M
+102%	+115%

"We know consumers are looking for trusted brands,and we will continue investing in our leading brandssuch as SPAM®, SKIPPY®,Jennie-O®,Hormel® Natural Choice®and Applegate®."Jim Snee

BRAND

1Organic volume and organic net sales exclude the volume and sales impact of the Sadler's acquisition and CytoSport divestiture. Operating free cash flow is calculated as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. See the Q2 Press Release dated May 21, 2020 for the non-GAAP reconciliations.

2Comparison to adjusted diluted earnings per share in 2019 which excludes the one-time gain associated with the divestiture of the CytoSport business. See the Q2 Press Release dated May 21, 2020 for the non-GAAP reconciliations.

This document contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Please refer to the cautionary statements regarding "Risk Factors" and "Forward-Looking Statements" that appear on pages 30-35 in the company's Form 10-Q for the fiscal quarter ended Jan. 26, 2020 in addition to a supplemental risk factor relating to the COVID-19 pandemic included in our Form 8-K filed on May 21, 2020.

"Employee safety has been and will continue to beour top priority and this is why weare committed to making the."necessary investmentsto keep our team members safe

ACTIONS WE HAVE IMPLEMENTED ACROSS OUR FACILITIES

• Introduced our new awareness initiative called
  KEEP COVID OUT!
• Provided personal protective equipment for all plant team members
• Performed frequent disinfecting ofhigh-touch areas
• Reconfigured common areas and workstations
• Performed temperature and wellness screenings
• Reduced production line speeds
• Revised shift scheduling
• Provided new guidelines on carpooling
• Expanded social distancing measures

throughout each facility

• Provided remote work opportunities

where possible

• Awarded $11 million in bonuses to all

full- and part-time plant production team members

NEAR-TERM BUSINESS DYNAMICS

Strong demand for retail products and recovery in foodservice

• Uncertainty related to operational interruptions across the industry

Volatile costs for many key inputs

$Higher operating costs due to the eects of COVID-19

			FOR MORE INFORMATION
	i
		IR: Nathan Annis	[e-mail]
			Media Relations:	[e-mail]