BMO Farm to Market
Conference
May 20, 2015
Donnie Smith
President & CEO
Forward-Looking Statements
Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to
expected performance. These forward-looking statements are subject to a number of factors and uncertainties which could cause
our actual results and experiences to differ materially from the anticipated results and expectations expressed in such forwardlooking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only
as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and
expectations expressed in such forward-looking statements are the following: (i) the effect of, or changes in, general economic
conditions; (ii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains
(including corn and soybean meal) and energy; (iii) market conditions for finished products, including competition from other global
and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative
proteins; (iv) successful rationalization of existing facilities and operating efficiencies of the facilities; (v) risks associated with our
commodity purchasing activities; (vi) access to foreign markets together with foreign economic conditions, including currency
fluctuations, import/export restrictions and foreign politics; (vii) outbreak of a livestock disease (such as avian influenza (AI) or
bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we
purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (viii)
changes in availability and relative costs of labor and contract growers and our ability to maintain good relationships with
employees, labor unions, contract growers and independent producers providing us livestock; (ix) issues related to food safety,
including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (x) changes in consumer
preference and diets and our ability to identify and react to consumer trends; (xi) significant marketing plan changes by large
customers or loss of one or more large customers; (xii) adverse results from litigation; (xiii) impacts on our operations caused by
factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemic or extreme weather; (xiv) risks
associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xv) compliance
with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws,
environmental laws, agricultural laws and occupational, health and safety laws; (xvi) our ability to make effective acquisitions or
joint ventures and successfully integrate newly acquired businesses into existing operations; (xvii) failures or security breaches of
our information technology systems; (xviii) effectiveness of advertising and marketing programs; and (xix) those factors listed under
Item 1A. “Risk Factors” included in our Annual Report filed on Form 10-K for the period ended September 27, 2014.
Who We Are
Purpose:
Vision:
To be the global innovative leader of food experiences
Intent:
To sell more branded, protein-centric food profitably than any
other company in the world
House of Brands
Market Share in Leading Categories
Market Share in Leading Categories
Brand
Category
Share Position
Fresh Chicken*
#1
Frozen Cooked Chicken
#1
Frozen Uncooked Chicken
#1
Frozen Uncooked
Cornish Chicken
#1
Recipe Meats (Refrigerated
Grilled & Ready Strips)
#3
Stack Pack Bacon
#1
Branded Bacon
Frozen Branded Waffles
Brand
Category
Share Position
Breakfast Sausage
#1
Frozen Protein Breakfast
#1
Smoked Sausage
#1
Branded Lunchmeat
#2
Hot Dogs
#1
Corn Dogs
#1
Super Premium Sausage
#1
#3
#2
Source: IRI, Total US Multi-Outlet, 52 weeks ending 04.26.15
*Nielsen Perishables Group, Total U.S. Fresh, 52 weeks ending 03.28.15
Adjusted EPS* Growth
*Represents a non-GAAP financial measure. Adjusted EPS is explained and reconciled to GAAP
earnings per share in the Appendix.
** Projected adjusted EPS guidance as of May 4, 2015
Key Takeaways
• Tyson Foods is in a preferred and a unique position
• Intent: to sell more branded, protein-centric food profitably
than any other company in the world
• R&D/Innovation
• Multi-channel, multi-protein, all day parts, all meal occasions
• Prepared Foods
• Buy vs. Grow strategy for chicken
• Raw material optimization/utilization
• Tyson Foods is growing
Andy Callahan
President, Retail Packaged Brands
What I Want You to Take Away from Today
Our goal is to deliver top-tier performance in the food industry
We have an advantaged portfolio with a preferred position to grow
ahead of competition
Our brand building model has a proven track record of growth
Our pipeline is robust
Leading Share in Core Categories
Market Share in Leading Categories
Market Share in Leading Categories
Brand
Category
Share Position
Fresh Chicken*
#1
Frozen Cooked Chicken
#1
Frozen Uncooked Chicken
#1
Frozen Uncooked
Cornish Chicken
#1
Recipe Meats (Refrigerated
Grilled & Ready Strips)
#3
Stack Pack Bacon
#1
Branded Bacon
Frozen Branded Waffles
Brand
Category
Share Position
Breakfast Sausage
#1
Frozen Protein Breakfast
#1
Smoked Sausage
#1
Branded Lunchmeat
#2
Hot Dogs
#1
Corn Dogs
#1
Super Premium Sausage
#1
#3
#2
Source: IRI, Total US Multi-Outlet, 52 weeks ending 04.26.15
*Nielsen Perishables Group, Total U.S. Fresh, 52 weeks ending 03.28.15
Tyson Foods Is Advantaged on Multiple Retail Fronts
Refrigerated
& Frozen
Departments
are showing
1.6x the growth
of Total Food &
Beverage
92% of our
Frozen sales and
99% of our
Refrigerated
sales are in
Growing
Categories
Source: IRI U.S. Multi Outlet frozen category sales data for 52 weeks ending 04.19.15
Among large
Food & Beverage
companies,
we are #2
in Dollar Sales
Growth over the
latest 52 weeks
Tyson Foods Is Growing At Retail
Tyson Foods is #2 in growth among Food & Beverage companies with retail sales >$5 billion a year
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
Source: IRI Total U.S. Multi Outlet (MULO) - 52 weeks ending 04.19.15
Multiple Areas to Grow in Large Categories
Lunchmeat
87%
Hot Dogs
77%
32%
Uncooked Bacon
69%
Frozen Cooked
Smoked Sausage Breakfast Sausage Prepared Chicken
61%
30%
61%
29%
Frozen Protein
Breakfast
55%
26%
33%
38%
23%
6%
Size of Category
$6.6Bn
$2.6Bn
$3.7Bn
$2.0Bn
$2.0Bn
$2.6Bn
$1.6Bn
Dollar Growth
(2-yr CAGR)
+2.7%
+1.3%
+9.1%
+6.4%
+7.4%
-1.0%
+4.5%
Category HH Penetration
Source: Symphony IRI Group
a) National Consumer Panel for 52 weeks ending 4/19/15 Penetration
b) Total US Multi-Outlet for 52 weeks ending 4/26/15
Brand HH Penetration
Segmenting Consumers Maximizes
Brand Growth Potential
LIVE TO EAT
EAT TO LIVE
Food
Loving
Family
Pleaser
Upbeat
Food
Explorer
Food
Aficionados
Social
Indulger
Stressed
Routine
Convenience Struggler
Seeker
Carefree
Conflicted
Stress
Manager
Struggling
LifeBalancing
Weight
Manager
Wellness
Proactive
Disciplined
Our Model Delivers Sustainable, Profitable Growth
Strengthen
the Core
Extend
Brands into
Adjacencies
Fuel Growth
through
Efficiency
and Cost
Reductions
Build
IndustryLeading
Capabilities
Improving Return on Each MAP Dollar Spent
Approach
Legacy Hillshire MAP Efficiencies
(Return per MAP Dollar)
Portfolio Role
+17%
+13%
Well-Designed
Execution Plan
Measuring Results &
Optimizing
FY12
FY13
FY14
Continuing Track Record of Innovation Success
Legacy Hillshire FY09-FY14
Tyson Retail
13-15%
11%
13%
9%
FY09-12
FY13
FY 14
Goal
Distribution Drive – Competitive Performance
Tyson Foods
is growing TPDs
3.5x faster
Tyson TPD Growth Rate
(Fiscal 2015 vs YAGO)
than competitors
3.5%
3.5X
 Sharper Analytics on TPDs Tied To
Shopper Behavior
 Aligned Organization Objectives
Against TPDs
 Added To Customer Scorecards
0.1%
Comp
Source : Latest IRI FYTD April 26, 2015
Tyson Includes Legacy Tyson, Hillshire, Vans and GFG Categories : Processed
Poultry - Fz/Rfg, Breakfast Meats, Poultry - Fz/Rfg, Breakfast Food – Fz, Meat –
Rfg, Luncheon Meats, Dinner Sausage, Frankfurters, Dinners/Entrees – Fz, Meat
– Ss, Meat – Fz, Entrees – Rfg, Desserts/Toppings – Fz, Pies – Fz,
Appetizers/Snack Rolls - Fz
Tyson
Four Growth Platforms
New, exciting solutions
for convenient
complete and
assembled breakfast
Enabling higher
quality and more
unique meals without
all the prep
0
Handheld and
shareable products
for at home and onthe-go
Foundationally
nutritious products for
our most disciplined
consumers
Expand the Brand
Breakfast
Anytime Meals
Expand the Brand
Premium
Frozen Patties
Expand the Brand
Value
Clean Label
Major Product Launches for 2H FY15
Key Takeaways
Our goal is to deliver top-tier performance in the food industry
We have an advantaged portfolio with a preferred position to grow
ahead of competition
Our brand building model has a proven track record of growth
Our pipeline is robust
Appendix – Non-GAAP Reconciliations