EX-99.1 2 sfdex991november2011invest.htm PRESENTATION

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, risks associated with our
indebtedness, including cost increases due to rising interest rates or changes in debt ratings or
outlook, hedging risk, operating efficiencies, changes in foreign currency exchange rates, access to capital, the
cost of compliance with changes to regulations and laws, including changes in accounting standards, tax
laws, environmental laws, agricultural laws and occupational, health and safety laws, 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 2011. 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.

Non-GAAP Measure Reconciliations

Smithfield At A Glance
Fiscal 2011 Sales=$12.2 billionFiscal 2011 Operating Profit=$1.1
billion
PorkSales=$10.3 billionOperating Profit=
$753 million
Fresh PorkSales=$4.6 billionOperating Profit=
$407 million
Packaged MeatsSales=$5.7 billionOperating Profit=
$347 million
Hog ProductionSales=$2.7 billionOperating Profit=
$224 million
International
Sales=$1.3 billion
Operating Profit=
$116 million
New.Smithfield trans.png
Note: Segment sales before inter-segment eliminations; Fresh Pork and Packaged Meats results represent management’s estimated allocation of total Pork Segment results

Sales by Segment
Hog Production
19%
International
9%
Packaged Meats40%
Fresh Pork32%
Total Pork72%
Pork segment
accounted for
nearly three-
quarters of
segment sales in
fiscal 2011
Note: Segment sales before inter-segment eliminations

Leading Positions In Pork Industry
28%
Others27%
Tyson17%
JBS11%
Cargill9%
Hormel8%
Pork Processing
Sources: National Pork Board Spring 2009; U.S. Pork Powerhouses2011
New.Smithfield trans.png
14%
Triumph6%
4%
3%
3%
Others70%
Hog Production
Seaboard
Maschhoffs
Prestage
New.Smithfield trans.png
#1

#1 U.S. Packaged Pork Company
Retail45%
Foodservice23%
Export13%
Deli7%
Processor/Industrial12%
Sales
Retail39%
Foodservice16%
Export16%
Deli3%
Processor/Industrial26%
Volume
Note: FY 11 Pork segment sales and volume before inter-segment eliminations
#1Supplier to
RetailFoodserviceExport
#1Supplier to
RetailFoodserviceExport

Consumer-Winning Brands
Cooks.eps
http://www.trademarkia.com/services/logo.ashx?sid=77949721
http://www.trademarkia.com/services/logo.ashx?sid=77914462
Eckrich_Logo.eps
New.Smithfield trans.png
http://doclibrary.com/BRO222/CMM/Farmland%20Logo%20New%20Mar03.jpg
Private
Label/Other24%
Core
Brands65%
Non-Core
Brands11%
Branded76%
HealthyOnes_Logo.png
Margherita1_Logo.eps
Carando Logo4C.eps
Curly's logo only_CMYK.eps
Kretschmar_Logo.eps
http://www.fancyfoodsinc.com/images/phocagallery/thumbs/phoca_thumb_l_gwaltney-logo%20-vector.jpg
Note: Based on FY 12 Q1 Pork segment packaged meats retail volume, including deli and direct store delivery
More than three-
quarters of Smithfield’s
packaged meats sales
are branded
Core brands
account for
85% of
branded

Earnings Growth Driven By Pork Segment
$219
$449
$483
$573
$753
$113
$137
$-
$100
$200
$300
$400
$500
$600
$700
$800
FY 07
FY 08
FY 09
FY 10
FY 11
FY 11 Q1
FY 12 Q1
Pork segment adjusted
operating profit(in millions)
Fresh pork
Packaged meats
Total Pork Segment
Note: Results represent management’s estimated allocation of total Pork Segment results; FY 09 and FY 10 results adjusted for restructuring and impairment charges; Refer
to Non-GAAP measure reconciliations
Pork segment has produced four
consecutive years of record
earnings and tripled profitability
since fiscal 2007

Packaged Meats
Note: Results represent management’s estimated allocation of total Pork Segment results; FY 09 and FY 10 results adjusted for restructuring and impairment charges; Refer
to Non-GAAP measure reconciliations; Sales before inter-segment eliminations
Fiscal 2011
Fiscal2012
Sales
$5.7 billion
Volume
2.7 billion
pounds
˜3%
volume
growth goal
Operating
Profit
$346.9
million
Normalized
OperatingProfit Range
10to 15
centsper
pound
High end of
normalized
operating
profit range
$0.06
$0.10
$0.12
$0.17
$0.13
$0.11
$0.17
4.6%
5.6%
6.9%
9.6%
6.1%
5.3%
7.5%
FY 07
FY 08
FY 09
FY 10
FY 11
FY 11
Q1
FY 12
Q1
Adjusted Operating profit ($ per pound)
Adjusted Operating profit (% of sales)

Achieving Strategic Branded Growth
17%
0%
4%
17%
-1%
-2%
16%
12%
11%
8%
5%
4%
138%
23%
23%
13%
5%
4%
Boneless Ham
Steaks
Bacon
Tub
Lunchmeats
BBQ
Smoked Dinner
Sausage
Portable
Lunches
YOY Volume Growth
Category
Smithfield Total
Smithfield Lead Brand
Source: Information Resources, Inc. (IRI) 12 weeks ending 10/09/11

Product Innovation
ArmourLunchkitwith Apples
New ArmourActive Packs offers
lunchkitswith better-for-you ingredients
for consumers with active lifestyles
ArmourLower Sodium Pepperoni
Innovative full-flavor product packs 50
percent less sodium than regular
pepperoni
Smithfield PouchPackBaconInnovative package design breaks
ground for industry and consumers with
two stay-fresh pouches each containing
six slices of bacon
PP Product Shot.png
Convenience
Health &
Nutrition
Packaging

Brand Activation
Billboards
Consumer
Promotions
Digital
FSIs
Print
Radio
Retail POS
Social Media
Television
Commercials
Website
PP Ad Slick.png
726281 Dinner Sausage Ad-15-8-11.jpg
image002
Actual Ham Shop Multideck Display.jpg
Smithfield has
increased its
consumer
marketing
spending by
20% this year

Fresh Pork
$1
$5
$3
$3
$15
$7
$6
0.9%
3.4%
2.0%
1.9%
8.9%
4.0%
2.8%
FY 07
FY 08
FY 09
FY 10
FY 11
FY 11
Q1
FY 12
Q1
Adjusted Operating profit ($ per head)
Adjusted Operating profit (% of sales)
Fiscal 2011
Fiscal2012
Sales
$4.6 billion
Balanced
domestic
supply &
demand
Verystrongexports
Volume
27.3 millionhogs
Operating
Profit
$406.5
million
NormalizedOperating
ProfitRange
$3-7per
head
Abovenormalized
operating
profit range
Note: Results represent management’s estimated allocation of total Pork Segment results; FY 09 and FY 10 results adjusted for restructuring and impairment charges; Refer
to Non-GAAP measure reconciliations; Sales before inter-segment eliminations
Improved
outlook
Improved
outlook

Exports
China-HK26%
Japan26%
Mexico22%
Korea7%
Russia6%
Other13%
Smithfield FY 12 Q1
Export Markets by Volume
.Volume +13% YOY
.Dollars +28% YOY
Note: Live hog cost estimate week ending 10/22/11; EU is average of Denmark, France, Germany, Hungary, Netherlands, Poland, Romania and Spain; FY 12 Q1 Smithfield
export markets; Other Category consists of the following countries: Angola, Aruba, Australia, Bahamas, Bermuda, Canada, Caribbean, Chile, Columbia, Costa
Rica, Croatia, Cuba, Dominican Republic, Ecuador, El Salvador, Guam, Guatemala, Haiti, Honduras, EU, Indonesia, Macedonia, Malaysia, New Zealand, Panama, Peru, Puerto
Rico, Singapore, Tahiti, Ukraine, Uruguay, Venezuela, Vietnam, Philippines, Taiwan
$0.67
$0.69
$0.74
$1.21
$1.22
$1.32
$1.66
Mexico
U.S.
EU
China
South Korea
Russia
Japan
Economics Supportive of
U.S. Pork Exports
Live Hog Price Estimate ($ per pound)

Pork Exports Trending To Record
7%
19%
22%
Industry
% of Pork Production Exported
2000
2010
January-August 2011
20%
24%
Smithfield
World
population has
increased
almost 17%
Global GDP has
nearly doubled
World hog
inventories
have declined
Strong growth
in U.S. pork
exports
Since 2000…

Hog Production
$15
$(26)
$(28)
$13
$17
$30
12.1%
-1.1%
$(1)
-20.2%
-22.5%
7.9%
9.9%
15.2%
FY 07
FY 08
FY 09
FY 10
FY 11
FY 11
Q1
FY 12
Q1
Adjusted Operating profit ($ per head)
Adjusted Operating profit (% of sales)
Fiscal 2011Fiscal2012
Sales
$2.7
billion
Continued
low global
protein
inventories
Raising
costs in mid
$60s
Volume
16.4 millionhogs
AdjustedOperating
Profit
$214.6
million
NormalizedOperating
ProfitRange
$10-15 per
head
Normalized
operating
profit range
Improved
outlook
Note: FY 10, FY 11, and FY 12 Q1 results adjusted for certain significant items; Refer to Non-GAAP measure reconciliations; Sales before inter-segment eliminations
Improved
outlook

Improved Hog Production Outlook
Corn prices
have
declined
while hog
futures have
increased
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
ISU Model
Cost of Production
09/08/11
11/01/11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Live Hog Futures
09/08/11
11/01/11
Note: Industry cost of production based on futures curve for grains on 11/01/11; cost is pre-interest
$4 per
hundred-
weight
$1 per
hundred-
weight

Hog Production Profitability
Industry hog production
profitability averages
normalized range of $10-15 per
head for next twelve months
Note: Industry profitability based on futures curves for live hogs and grains on 11/01/11; cost is pre-interest
$55
$60
$65
$70
$75
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
$ per hundredweight
ISU Model Cost of Production
Live Hog Futures

Sensitivity Analysis
$1 per
bushel in
corn
$10 per
head
$50 per
ton in
soybean
meal
$3 per
head
$5 per cwt
in live hog
price
$13 per
head

International
$46
$3
$5
$128
$116
$25
$0
FY 07
FY 08
FY 09
FY 10
FY 11
FY 11
Q1
FY 12
Q1
Operating profit ($ in millions)
Fiscal 2011
Fiscal2012
Sales
$1.3
billion
Continued
high raw
material
costs & soft
demand
Sequential
improvement
from Q1
Operating
Profit
$115.9
million
NormalizedOperating
ProfitRange
$50-125million
Below
normalized
operating
profit range
Note: Sales before inter-segment eliminations

Balance Sheet
$68.6
$65.5
$60.3
$51.0
$48.1
FY 11
Q1
FY 11
Q2
FY 11
Q3
FY 11
Q4
FY 12
Q1
FY 12
Q2*
FY 12
Q3*
FY 12
Q4*
Quarterly Interest Expense ($ in millions)
Project 100
Goal =
$45 million
*Estimate
Balance Sheet
Weakness to Strength
•Eliminated $100 million in
annual interest expense
•Reduced debt by $1 billion
•Extended and smoothed debt
maturities
•Improved credit metrics
•Reduced idle cash
•Maintained $1 billion liquidity
•Upgraded by rating agencies
•Negotiated new revolving credit
facilities

Maintaining Conservative Balance Sheet
FY 12 Q1
Target
Liquidity
$1.2 billion
$500 million –$1billion
Net debt to TTM
adjusted EBITDA
1.6x
<3x
Net debt to total
capitalization
35%
<40%
Note: Net debt is equal to long-term debt and capital lease obligations, including current portion, less cash and cash equivalents; Net debt to total capitalization is computed
using net debt divided by the sum of net debt and shareholders’ equity; Refer to Non-GAAP measure reconciliations
FY 12 YTD
Repurchased
$111 million of
stock
Repaid $115
million of 2011
and 2014 bonds
Invested $100
million in
pension plans

Uses of Excess Cash
Cash
Reinvest in
packaged
meats
business
Share
repurchases
Extraordinary
pension
contribution
Debt
reduction
Acquire
branded
packaged
meats
companies

Investment Thesis
•Record year over year results for five straight quarters with positive outlook for fiscal
2012
•Improved Pork and Hog Production segment outlook
•Continuing to exhibit strong packaged meats pricing power
•Capitalizing on robust export demand
•Competitive cost structure in all operating segments
•Reduced domestic corn exposure by 40% since fiscal 2008
Delivering quality and consistent earnings growth
•Brands demonstrating strong pipeline for innovation and brand activation
•Growing core brand portfolio through increased consumer marketing
•Resuming evaluation of branded packaged meats acquisition opportunities
Driving profitable top line growth
•Robust financial policies remain a pillar of strategy
•Utilizing excess cash to repurchase shares and reduce debt
Solid financial management