Smithfield Foods (SFD) 8-K Regulation FD Disclosure

C. Larry Pope

President and Chief Executive Officer

Smithfield Foods, Inc.

July 8-9, 2009

2

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
availability and prices of live hogs and cattle, 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, 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 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. 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.

3

Who we are

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Hog Production*

Operating Loss:
$(521.2) million

•World’s largest hog
producer

*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, Inc. 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%

#1

Market Leader: Hog Production

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Pork*

Sales: $10.5 billion

Operating Profit:
$395.2 million

•World’s largest pork
processor

•Processed 33 million
hogs in FY09

•Sold approximately
4.5 billion pounds of
fresh pork in FY09

•Sold approximately
3.1 billion pounds of
packaged meats in
FY09

*Note: Fiscal 2009 sales (before eliminations) and operating profit

Source: United States Industry Data Successful Farming

#1

Market Leader: Pork

6

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
production facilities in
Belgium, France, Italy,
The Netherlands,
Portugal and Spain

•Joint ventures or
major investments in
Mexico and China

*Note: Fiscal 2009 sales (before eliminations) and operating profit

Market Leadership: International

7

Other Segment*

Sales: $251 million

Operating Loss:
$(46.6) million

•Comprised of turkey
production operations,
49% interest in
Butterball, remaining
live cattle operations
and interest in live
cattle joint venture
operations

•Butterball is the
largest turkey
processor in the U.S.

*Note: Fiscal 2009 sales (before eliminations) and operating profit; includes amounts related to cattle operations

Source: United States Industry Data Successful Farming

1 49 percent-owned joint venture

#1

Market Leader: Turkey Processing

8

What we have
been doing

9

February 2008	Initial Five Percent Reduction of Smithfield U.S. Sow Herd	Reduction of 50,000 sows and production of 900,000 fewer market hogs annually
April 2008	Senior Management Changes	Strengthened overall management team to improve operations and financial performance
July 2008	$400 Million Convertible Senior Notes Due 2013	Replaced bridge loans with permanent financing

Date

Action

Impact

Proactively Managing the Business

10

July 2008	Sale of 4.95 Percent of Shares to China's COFCO Limited	Improved liquidity and created long term relationship with one of China’s leading trading companies
October 2008	Sale of Beef Processing and Cattle Feeding Operations to JBS	Significantly improved liquidity and refocused on core business
December 2008	Second Five Percent Reduction of Smithfield U.S. Sow Herd	Total reduction of 100,000 sows and production of 1.4 million fewer market hogs in fiscal 2010 and 1.8 million fewer market hogs annually thereafter

Date

Action

Impact

Proactively Managing the Business

11

December 2008	Merger of Campofrío and Groupe Smithfield	Formed leading European packaged meats company and monetized joint venture into publicly-traded company
February 2009	Successfully Negotiated New Covenant Amendments	Improved financial stability through bottom of hog cycle
February 2009	Pork Group Restructuring	$125 million in estimated annual EBT improvement by fiscal 2011

Date

Action

Impact

Proactively Managing the Business

12

June 2009	Additional Three Percent Reduction of Smithfield U.S. Sow Herd	Reduction of 30,000 sows and production of 540,000 fewer market hogs annually
July 2009	Secured New Credit Line, Completed $625 Million Senior Secured Notes Offering and Replaced Term Loan	Provided clear path to repayment of near-term obligations and extension of mid-term maturities and begins to reduce exposure to financial covenant risk

Date

Action

Impact

Proactively Managing the Business

13

Pork Group
restructuring plan

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Pork Group Restructuring Plan

•Streamline Pork Group structure by reorganizing
management team under George Richter

•Consolidate seven IOC’s into three and close six
processing plants

•Merge three fresh pork sales organizations into two
and consolidate three overseas export teams into
one to improve efficiency and reduce SG&A

•Consolidate manufacturing platform to improve
margins and lower costs by increasing plant
utilization from 81 percent to 87 percent

15

Improvement from Restructuring

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(in millions)	FY09Q3	FY09Q4	FY101	FY111	Total1
Plant consolidation capital requirements	-	$3	$49	-	$52
One time expenses	$12	$2	$23	-	$37
Non-cash asset write-off	$73	$1	-	-	$74
EBT Improvements	-	-	$55	$125

1 Estimated

EBT Impact from Restructuring

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Smithfield
estimates

$80 million in
annual EBT
improvement
in packaged
meats as a
result of
restructuring

1 Before restructuring charges

2 Estimated

Packaged Meats Margin Growth

18

Liquidity and
refinancing

19

Smithfield
continues to
improve
liquidity and
has reduced
debt by over
$890 million
from the
previous fiscal
year

Note: Amounts reflect unused borrowing capacity under U.S. credit facility
at quarter end and do not include cash balances reflected on balance sheet

Improved Liquidity

20

Ongoing Debt Restructuring Efforts

•   New Credit Line - - Entered into new $1 billion asset-
based revolving credit facility that replaces the
previous U.S. revolving credit facility

–Begins to reduce exposure to financial covenant risk

•$625 Million Senior Secured Notes Offering - -
Proceeds to repay borrowings and terminate
commitments under existing U.S. revolving credit
facility, repay and/or refinance other indebtedness
and for other general corporate purposes

•Term Loan - - New $200 million term loan replaces the
previous $200 million term loan that was scheduled
to mature in August 2011

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Exports

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Note: Week ending June 20, 2009

U.S. pork prices
are among the
lowest on the
worldwide market

World Pork Prices

23

Note: January FY2009 five weeks versus January FY2008 and January FY2007 four weeks

Smithfield fresh pork
exports continue at
near year ago levels

Smithfield Fresh Pork Exports

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U.S. exports of pork
and pork variety meats
continue at near year
ago levels

Source: USDAForeign Agricultural Service (FAS)

U.S. Monthly Pork Exports