Pilgrim Pride : Q1 2023 Pilgrim's Pride Earnings Presentation

Financial Results for First Quarter Ended

March 26th, 2023

Pilgrim's Pride Corporation

(NASDAQ: PPC)

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 statements. Without limiting the foregoing, words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "should," "targets," "will" and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the impact of the COVID-19 pandemic, efforts to contain the pandemic and resulting economic downturn on our operations and financial condition, including the risk that our health and safety measures at
  Pilgrim's Pride production facilities will not be effective, the risk that we may be unable to prevent the infection of our employees at these facilities, and the risk that we may need to temporarily close one or more of our production facilities; the risk that we may experience decreased production and sales due to the changing demand for food products; the risk that we may face a significant increase in delayed payments from our customers; and additional risks related to COVID-19 set forth in our most recent Form 10-K and Form 10-Q filed with the SEC; matters affecting the poultry industry generally; the ability to execute the
  Company's business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company's products; outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim's Pride's leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward- looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
• Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must caution investors and others that other factors may in the future prove to be important and affecting our business or results of operations.
• This presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our method of computation may or may not be comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated statements of income and consolidated statements of cash flows included in our financial statements..

First Quarter 2023 Financial Review

Main Indicators ($M)	Q1 2022	Q1 2023
Net Revenue	4,240.4	4,165.6
Gross Profit	542.0	173.0
SG&A	140.0	133.7
Operating Income	402.0	31.3
Net Interest	35.0	39.1
Net Income	280.4	5.2
Earnings Per Share	1.15	0.02
(EPS)
Adjusted EBITDA*	501.8	151.9

Adjusted EBITDA

• U.S.: Significant year-over-year decline in commodity market pricing impacted Big Bird business; however, diversified portfolio across bird sizes and Key Customer strategy helped to reduce negative impact; UK/Europe: Significant year-over-year profit improvement due to actions taken to mitigate inflationary cost pressures; Mexico: year-over-year profitability decline; however, sequential quarter- over-quarter improvement in profitability due to improved balance in supply / demand dynamic and dissipating live operations challenges.
• SG&A lower due to reduction in legal defense costs and other cost efficiencies.
• Adjusted Q1 2023 EBITDA decrease driven by significantly lower US commodity market pricing; partially offset by benefits of our portfolio balance, Key Customer strategy, and geographic diversification.

Margin*

11.8% 3.6%

In $MM

U.S.

EU

MX

• This is a non-GAAP measurement considered by management to be useful in understanding our results. Please see the appendix and most recent SEC financial filings for definition of this measurement and reconciliation to GAAP.

Net Sales	2,432.6	1,239.3	493.8
Operating	(28.1)	25.3	34.2
Income (Loss)
Operating	(1.2)%	2.0%	6.9%
Income (Loss)
Margin

3

Source: PPC

Corn Stocks Decrease

• Recent USDA reports have held few surprises in terms of the current crop year balance sheet. Ending stocks estimates have been steady at a historically lean 1.342B bushels.
• US exports for the first 6 months of the crop year were down approximately 37% year on year as:
• • Brazil supplied much of China's import needs through the winter
  • Feed wheat and barley have offered attractive substitutes for global corn importers
  • Black Sea shipments have consistently met expectations
• Domestically, corn demand for ethanol was down 5.2% and feed/residual demand was down 7% vs the same time period in the previous year.
• Further demand rationing for the second half of the crop year will largely depend on production prospects for Brazil's second corn crop. Planted area is robust, conditions are favorable, and Brazil is pricing very competitively into global destinations. Yet, the critical weather period is ahead.
• Turning to new crop, USDA's prospective planting report showed a positive response to elevated corn prices and the corn/soybean price ratio with planting intentions of 92M acres of corn, up from 88.6M acres in '22. Conditions have recently improved and planting is

underway.

Source: PPC

4

Soybean Stocks Decrease

• Q1 saw diverging soybean production estimates across South America. Brazil is currently harvesting a record crop, while Argentina's crop is down 19Mmt vs last year. South American production is up approximately 13.5Mmt net, but well off early expectations.
• While global bean stocks are at acceptable levels, the soybean meal supply is constrained as Argentina is dependent on soybean imports to run their crushing industry.
• However, tepid soybean demand from China and weak soybean meal demand outside the US have kept soybean meal prices from returning to their Q1 highs.
• For the US, USDA's prospective plantings showed intentions for '23/24 soybean acreage at 87.5 million acres, essentially flat year on year. There will be little room for error in US production as the US still looks to finish the current crop year with historically tight ending stocks of 210M bushels, or 4.8% stocks-to-use.
• Changes to US biofuel policy raise questions about the rate of soy crush industry expansion in the US in the 2-4 year time frame.

Source: PPC

5