EX-99.1 2 ex99_1.htm POWERPOINT PRESENTATION
Barclays Capital 2010
High Yield Bond and
Syndicated Loan Conference
Robert W. Manly
Executive Vice President and Chief Financial Officer
Smithfield Foods, Inc.
March 26, 2010

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Forward-Looking Statements
This presentation contains “forward-looking” statements within the meaning of the federal
securities laws. The forward-looking statements include statements concerning the
Company’s outlook for the future, as well as other statements of beliefs, future plans and
strategies or anticipated events, and similar expressions concerning matters that are not
historical facts. The Company’s forward-looking information and statements are subject to
risks and uncertainties that could cause actual results to differ materially from those
expressed in, or implied by, the statements. These risks and uncertainties include the
availability and prices of live hogs, raw materials, fuel and supplies, food safety, livestock
disease, live hog production costs, product pricing, the competitive environment and related
market conditions, hedging risk, operating efficiencies, changes in interest rate and foreign
currency exchange rates, changes in our credit ratings, access to capital, the investment
performance of the Company’s pension plan assets and the availability of legislative funding
relief, the cost of compliance with environmental and health standards, adverse results from
on-going litigation, actions of domestic and foreign governments, labor relations issues,
credit exposure to large customers, the ability to make effective acquisitions and
dispositions and successfully integrate newly acquired businesses into existing operations,
the Company’s ability to effectively restructure portions of its operations and achieve cost
savings from such restructurings and other risks and uncertainties described in the
Company’s Annual Report on Form 10-K for fiscal 2009 and in its subsequent Quarterly
Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking
statements because actual results may differ materially from those expressed in, or implied
by, the statements. Any forward-looking statement that the Company makes speaks only as
of the date of such statement, and the Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future events or
otherwise. Comparisons of results for current and any prior periods are not intended to
express any future trends or indications of future performance, unless expressed as such,
and should only be viewed as historical data.

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Emerging As A Global Leader In
Packaged Meats

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Market Leader: Pork Processing
Pork
Sales: $9.3 billion
Operating Profit:
$538.2 million
•World’s largest pork
processor
•Sold approximately
3.1 billion pounds of
packaged meats in
FY09
•Processed 33 million
hogs in FY09
•Sold approximately
4.5 billion pounds of
fresh pork in FY09
Note: TTM FY 10 Q3 sales (before eliminations) and operating profit
Source: United States Industry Data Successful Farming
(% of U.S. hogs processed)

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Smithfield sold
approximately 3.1
billion pounds of
packaged meats
in fiscal 2009
(% of Smithfield U.S. packaged meats volume)

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Market Leadership: International
International
Sales: $1.2 billion
Operating Profit:
$39.5 million
•Subsidiaries in
Poland, Romania and
the United Kingdom
•37% ownership of
Campofrío Food Group
(public company) with
#1 packaged meats
market share in
France, Spain, The
Netherlands, Belgium
and Portugal
•Joint ventures in
Mexico and China
Note: TTM FY 10 Q3 sales (before eliminations) and operating profit
#1

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Market Leader: Turkey Processing
Other Segment
Sales: $189 million
Operating Loss:
$(17.1) million
•Butterball is the
largest turkey
processor in the U.S.
•Segment comprised
of turkey production
operations, 49%
interest in Butterball
and interest in live
cattle joint venture
operations
Note: TTM FY 10 Q3 sales (before eliminations) and operating profit; includes amounts related to cattle operations
Source: United States Industry Data Successful Farming
1 49% owned joint venture
(% of U.S. turkeys processed)

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Market Leader: Hog Production
Hog Production
Sales: $2.4 billion
Operating Loss:
$(555.8) million
•World’s largest hog
producer
•Produced 18.7
million hogs in U.S.
in FY09
•Produced 1.7
million hogs in
Poland and Romania
and 1.7 million hogs
at Mexican joint
ventures in FY09
Note: TTM FY 10 Q3 sales (before eliminations) and operating profit
Source: United States Industry Data Successful Farming
1 The majority of hogs from Prestage Farms and Goldsboro Hog Farm are sold to Smithfield Foods under long-term contract
2 Approximate market shares of Five Producers: Cargill=2%; Iowa Select Farms=2%; The Pipestone System=1%; Goldsboro
Hog Farm=1%; The Hanor Company=1%; Total=8%

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The New Era of Smithfield

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The New Era of Smithfield
• Restructured Pork Group primed for higher performance
and stability of earnings
• Focus on synergies, efficiency, ROIC and margins
• Increased financial management with focus on
deleveraging the balance sheet and maintaining strong
liquidity
• Business focus on maximizing core assets
• Create better balance of earnings between hog
production and pork processing

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Pork Group Restructuring Update
• Streamlined Pork Group management structure - DONE
• Consolidated seven IOC’s into three and closed five
processing plants; sixth to close in third quarter - DONE
• Merged three fresh pork sales organizations into two and
consolidated three overseas export teams into one -
DONE
• Consolidated manufacturing platform to improve
margins, lower operating costs and increase plant
utilization - DONE
• Improved Pork Group base profitability - IN PROCESS

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Pork Group Restructuring Costs/Benefits
$54 million
$34 million
$74 million
$125 million

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Pork Group Restructuring Costs/Benefits

| Capital requirements | One time expenses | Non-cash asset write-off | Annual EBT Improvements
Total | $52 million | $34 million | $74 million | $125 million
Amount previously incurred/achieved | $44 million | $28 million | $74 million | $111 million
Amount remaining after FY 10 Q3 | $8 million | $6 million | - | $14 million

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Packaged Meats Margin Growth
Note: FY 09 and FY 10 results before restructuring charges

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Packaged Meats EBT Growth
Note: FY 09 and FY 10 results before restructuring charges

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Packaged Meats Contribution
Packaged meats
will continue to
drive pork
segment
earnings
contribution
$5.71
$9.34
$14.32
$15.00
Note: FY 09 and TTM results exclude impairments mostly related to segment restructuring. All periods
reflect an apportionment of "Pork Other" consistent with the apportionment recognized for FY 10.
$18.11

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Source: IRI Total US Food 52 WE 12/06/09; FreshLook Market Total US Food 52 WE 11/22/09; Turkey = Whole Bird

| Category |
| Size 1 | Growth 2 |  |
Packaged Lunchmeat | 741.1 | -2.5% | 11.1% | 2
Deli Meats | 685.2 | +2.6% | 13.3% | 1
Turkey | 631.9 | +0.8% | 20.7% | 1
Bacon | 604.1 | +7.2% | 18.4% | 1
Smoked Hams | 544.0 | +10.6% | 55.0% | 1
Cooked Dinner Sausage | 361.8 | -1.2% | 17.0% | 2
Breakfast Sausage | 341.3 | +0.7% | 7.7% | 3
Smoked Pork | 161.8 | -3.5% | 49.5% | 1
Value Added Ham Cuts | 58.8 | +3.4% | 27.9% | 1
Frozen Meatballs | 57.2 | +2.2% | 24.2% | 1
BBQ Meats | 30.4 | +3.9% | 21.4% | 2

Smithfield brands
drive 19.5% of the
5 billion+ pounds
sold across its
key growth
categories
Smithfield brands
are ranked 1st or
2nd in 10 leading
consumer
packaged meats
categories
Leading position in key consumer categories

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Hog Production Operating Profit (Loss)
Smithfield has
proactively
reduced the size
of its sow herd
by 13% in an
effort to return
hog production
to normalized
levels of
profitability
Hog production
losses
moderated
significantly in
the third quarter
of fiscal 2010

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U.S. Sow Herd Reduction
Smithfield will
produce
approximately 1.4
million fewer
market hogs in
fiscal 2010 and
approximately 2.2
million fewer
market hogs
annually thereafter

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Exports

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U.S. Pork Exports 2000 vs. 2008
2008
2000
1.3 billion pounds; 7
million hogs; 7% of
U.S. production

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Financial Management

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Restructuring the Balance Sheet
• Reduced total debt
• Removed risk
– Covenant
– Liquidity
– Maturities

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Restructured $2 Billion In Debt

| Size | Maturity
Asset-Based Revolving Credit Facility | $1.0 billion | July 2012
Senior Secured Notes | $625 million | July 2014
Senior Secured Notes | $225 million | July 2014
Term Loan Maturity Extension | $200 million | October 2013

New credit facility
contains no
currently
applicable
maintenance
covenants
Estimated
quarterly interest
expense is $65-70
million
Note: New credit facility requires that fixed charge coverage ratio must be at least 1.1
to 1.0 if availability is less than $120 million. The Company does not expect that
availability will be below that threshold through fiscal year 2010.

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Improving Liquidity
Smithfield
continues to
improve liquidity
and has reduced
net debt in excess
of $1 billion since
fiscal 2009
Note: Amounts reflect unused borrowing capacity under U.S. credit facility at quarter end plus invested and liquid
cash

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Long-Term Debt Maturities
Smithfield has no
significant debt
maturities until
fiscal 2012

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Total Debt to Total Capitalization
Note: FY 10 Pro forma debt is net of short-term cash investments

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Conclusion

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Where do we go from here?
• De-emphasize domestic hog production
• Devote additional resources to marketing
• Concentrate on packaged meat capabilities
• Continue to search for international value added
opportunities

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Conclusion
• Pork Group profitability is already benefitting from
restructuring plan and will increase in fiscal 2011
• Packaged meats business performing at record levels
• Continuing to maintain very strong liquidity position,
reduce debt and strengthen the balance sheet
• Hog production results are improving as a result of herd
reductions
• Company continues to position the overall business for
much stronger earnings