Jody Feragen Executive-Vice President and Chief Financial Officer - - PowerPoint PPT Presentation

Jody Feragen

Executive-Vice President and Chief Financial Officer

First Half 2013 Results

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$4,052 2,413 $0.95 Sales Tonnage (lbs.) Net earnings per share + 5% + 3% Even $4,269 2,477 $0.95

In millions except per share

2013 2012 Change

• Record sales
• Sales up in four of five business segments

EPS Guidance

• EPS guidance range $1.88 to $1.96
• Continuing difficult market conditions
• Soft demand for refrigerated retail
• Higher input costs
• Continuing protein volatility

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Free Cash Flow

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*Cash from Operations - CAPEX = Free Cash Flow 2008 2009 2010 2011 2012

$146 $454 $396 $394 $385

In millions

Cash Flow Priorities

• Invest in the business
• Internal
• Acquisitions
• Return cash to shareholders
• Dividends
• Share repurchase

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Internal Investment

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Invest in the Business

Strategic Acquisitions

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Invest in the Business Grocery Products: Traditional

2006 2001

Grocery Products: Mexican Specialty Foods Refrigerated Foods: Convenience Meals Refrigerated Foods: Value-Added Protein

2004 2006 2006 2007 2005 2009 2010 2011 2008 2005 2003 2002 2010 2005 2013

Jennie-O: Value-Added Turkey

Provena vena Foods, Foods, Inc. Inc.

Dividend History

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Balanced Model

$0.60 $0.68

+ 13%

$0.37 + 13% CAGR

Cash Returned to Shareholders

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Nearly $1 billion from 2008 through 2012

In millions Share Repurchase Dividends Paid 2008 2009 2010 2011 2012

Return on Invested Capital

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14.1% 14.9% 16.9% 13.1% 16.4% 11.4%

Hormel Foods ROIC Packaged Food Peers 2008 2009 2010 2011 2012 2012

Total Shareholder Return

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40 60 80 100 120 140 160 180 200 Hormel Foods Corporation S&P 500 S&P Packaged Food & Meats

Comparison of 5-Year Cumulative Total Return*

*$100 invested on 10/26/07 in stock or index – including reinvestment of dividends

Thank You!