ex99-1.htm

Barclays Capital
Back-To-School
Consumer Conference

C. Larry Pope, President and Chief Executive Officer

Robert W. Manly, Executive Vice President and Chief Financial Officer

Smithfield Foods, Inc.

September 10, 2009

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.

Emerging As A Global Leader In
Packaged Meats

Pork

Sales: $10.5 billion

Operating Profit:
$395.2 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: Fiscal 2009 sales (before eliminations) and operating profit

Source: United States Industry Data Successful Farming

(% of U.S. hogs processed)

Market Leader: Pork Processing

Smithfield sold
approximately 3.1
billion pounds of
packaged meats
in fiscal 2009

(% of Smithfield U.S. packaged meats volume)

International

Sales: $1.4 billion

Operating Profit:
$34.9 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: Fiscal 2009 sales (before eliminations) and operating profit

Market Leadership: International

Other Segment

Sales: $251 million

Operating Loss:
$(46.6) 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: Fiscal 2009 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)

Market Leader: Turkey Processing

Hog Production

Sales: $2.8 billion

Operating Loss:
$(521.2) 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: Fiscal 2009 sales (before eliminations) and operating loss

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%

(% of U.S hogs produced)

Market Leader: Hog Production

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

Pork Group Restructuring Update

• Streamlined Pork Group structure by reorganizing
management team - DONE

• Consolidated seven IOC’s into three and closed five
processing plants to date; 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

$50 million

$37 million

$74 million

$125 million

Pork Group Restructuring Costs/Benefits

	Capital requirements	One time expenses	Non-cash asset write-off	Annual EBT Improvements
Total	$50 million	$37 million	$74 million	$125 million
Amount previously incurred/achieved	$18 million	$20 million	$74 million	$8 million
Amount remaining after FY 10 Q1	$32 million	$17 million	-	$117 million

Pork Group Restructuring Costs/Benefits

Note: FY 09 and FY 10 Q1 results before restructuring charges

Packaged Meats Margin Growth

Note: FY 09 and FY 10 Q1 results before restructuring charges

Packaged Meats EBT Growth

Packaged meats
will continue to
drive pork
segment
earnings
contribution

$4.27

$5.96

$11.97

$14.12

Note: Results before restructuring charges

Packaged Meats Contribution

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 Operating Profit (Loss)

Smithfield will
produce
approximately 1.4
million fewer
market hogs in
fiscal 2010 and
approximately 2.2
million fewer
market hogs
annually thereafter

U.S. Sow Herd Reduction

Financial Management

Restructuring the Balance Sheet

• Reduced total debt

• Removed risk

– Covenant

– Liquidity

– Maturities

	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.

Restructured $2 Billion In Debt

Smithfield
continues to
improve liquidity
and has reduced
net debt by over
$1.1 billion from
the previous fiscal
year1

Note: Amounts reflect unused borrowing capacity under U.S. credit facility at quarter end plus invested and liquid cash

1 FY 09 Q1 versus FY 10 Q1

Improving Liquidity

Smithfield has no
significant debt
maturities until
fiscal 2012

Long-Term Debt Maturities

Goal is to reduce
debt to total
capitalization to
below 50% in next
24 months

Note: FY 10 Q1 Pro forma debt is net of short-term cash investments

Total Debt to Total Capitalization

Exports

U.S. pork
export
volume has
increased
263% since
2000

2008

4.7 billion
pounds; 23
million
hogs; 20%
of U.S.
production

2000

1.3 billion
pounds; 7
million
hogs; 7%
of U.S.
production

U.S. Pork Exports 2000 vs. 2008

Smithfield’s
export markets
vary in terms
of their level of
reliability

*Other Category consists of sales to the following countries: Taiwan, EU, Australia, Bahamas, Bermuda, Brazil, Bulgaria,
Caribbean, Chile, Columbia, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Malaysia, New Zealand, Panama,
Philippines, Poland, Singapore, Cuba, and Vietnam

Export Customer Reliability

Conclusion

• Pork Group profitability is already benefitting from
restructuring plan and will increase in fiscal 2010 and
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 will improve as herd reductions
accelerate and supply is reduced

• Company continues to position the overall business for
much stronger earnings