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 2013 2012 Change In millions except per share $4,269 $4,052 + 5% Sales Tonnage (lbs.) 2,477 2,413 + 3% $0.95 $0.95 Even Net earnings per share • Record sales • Sales up in four of five business segments 2

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 3

Free Cash Flow In millions $454 $396 $394 $385 $146 2008 2009 2010 2011 2012 *Cash from Operations - CAPEX = Free Cash Flow 4

Cash Flow Priorities • Invest in the business • Internal • Acquisitions • Return cash to shareholders • Dividends • Share repurchase 5

Invest in the Business Internal Investment 6

Invest in the Business Strategic Acquisitions Jennie-O: Value-Added Turkey Grocery Products: Traditional 2001 2006 2013 Refrigerated Foods: Value-Added Protein Grocery Products: Mexican Provena vena Foods, Foods, Inc. Inc. 2004 2006 2006 2007 2005 2009 2010 2011 Specialty Foods Refrigerated Foods: Convenience Meals 2005 2010 2002 2003 2005 2008 7

Balanced Model Dividend History + 13% CAGR + 13% $0.68 $0.60 $0.37 8

Cash Returned to Shareholders Nearly $1 billion from 2008 through 2012 In millions Share Repurchase Dividends Paid 2008 2009 2010 2011 2012 9

Return on Invested Capital 16.9% 16.4% Hormel Foods ROIC 14.9% Packaged Food Peers 14.1% 13.1% 11.4% 2008 2009 2010 2011 2012 2012 10

Total Shareholder Return Comparison of 5-Year Cumulative Total Return* Hormel Foods Corporation S&P 500 S&P Packaged Food & Meats 200 180 160 140 120 100 80 60 40 20 - *$100 invested on 10/26/07 in stock or index – including reinvestment of dividends 11

Thank You!