Investor Presentation Dolph Baker Chairman & CEO Max Bowman Vice President & CFO 3rd Quarter - 2020
F ORWARD LOOKING STATEMENTS This presentation includes forward-looking statements, which are all statements other than historical facts, can be identified by use of words such as “expect,” “will,” and “anticipate,” and include statements regarding expected operating results, acquisition transactions and potential effects of industry events or trends on our business. Important factors that can cause our results to differ materially from those anticipated in the forward-looking statements include egg prices and feed costs; changes in consumer demand or requirements of major customers; unanticipated results of acquisitions or joint ventures; ability to obtain eggs from outside producers; agricultural, regulatory and litigation risks; and other factors described in the cautionary language included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” section of our annual report on Form 10-K and subsequent filings. We undertake no obligation to update any forward-looking statements. 2
C AL-MAINE FOODS PROFILE We are the largest producer and marketer of shell eggs in the United States • Founded in 1957 in Jackson, Mississippi • Acquired Ralston-Purina egg operations in 1972 • Completed 22 acquisitions since 1989 • Fully integrated egg producer • Since 1996, publicly traded on NASDAQ under symbol "CALM" • FY 2019 U.S. fresh shell egg market share - 19 percent 3
K EY INVESTMENT POINTS • Largest egg producer and marketer in the United States • Commitment to Sustainability • Efficient, state-of-the-art operations • Solid customer base of leading retail and food service companies • Strong consumer demand for eggs • Leading producer and marketer of high-margin specialty eggs • Solid financial position • Proven management team and systems 4
T HE U.S. EGG INDUSTRY Further Processing - 80.1 Million Cases 30.3% Food Service Shell Eggs - 19.6 Million Cases Retail Shell Eggs - 157.6 7.4% Million Cases 59.5% Exports - 7.4 Million Cases 2.8% Case = 30 dozen eggs 5
S ALES HISTORY $2,000 1,200 $1,800 1,100 $1,600 1,000 $1,400 900 $1,200 (in millions) (in millions) $1,000 800 $800 700 $600 600 $400 500 $200 $0 400 2011 2012 2013 2014 2015 2016 2017 2018 2019 Period Ending Net Sales Eggs Sold 6
C AL-MAINE LOCATIONS Eggland's Best Franchise Territory Including Investment in Unconsolidated Entities 7
F ULLY-INTEGRATED OPERATIONS 8
E GG PRODUCTION FACILITIES Contract production 9% Company- owned 91% Total Flock As of February 29, 2020 Lake City, Florida 40.1 million Layers Pullets and Breeders 9.9 million 9
C OMPANY-OWNED FACILITIES • State-of-the-art • Fully automated • Temperature controlled • Labor efficient • Located near customers 10
C AL-MAINE CUSTOMERS Fiscal Year 2019 Food Service 7% Egg Products 3% Retail 90% 11
To P 10 CUSTOMERS - FISCAL 2019 Top 3 over 52% 1. Walmart and Sam's Club of Fiscal 2019 Sales 2. H.E. Butt Co. 3. Publix Super Markets 4. Food Lion 5. CCF Brands 6. Eggs America (Sysco, US Foodservice, etc.) 7. Wakenfern Food Corporation 8. Aldi 9. Costco 10. C&S Wholesale Grocers Total Top 10 Customers 69.8% 12
M ONTHLY HEN INVENTORY 350,000 340,000 330,000 Million Hens First Day of Month 320,000 310,000 300,000 290,000 280,000 270,000 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2014 2015 2016 2017 2018 2019 2020 Source: USDA Chicken and Egg Report March 23, 2020 13
A NNUAL EGG PRICES Urner Barry Southeastern Regional Large Egg Market Price $2.00 $1.79 $1.53 $1.49 $1.50 $1.43 $1.38 $1.35 $1.22 $1.23 $1.21 $1.15 $1.13 $1.12 $0.93 $1.00 $0.85 $0.75 $0.72 $0.50 $0.00 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 D 1 1 1 1 1 1 0 0 0 0 0 1 1 1 1 T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Y 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 F 0 2 0 2 (Monthly average by fiscal year) 2020 Price updated through March 26, 2020 Source: Urner Barry 14
F EED INGREDIENT PRICES 15 Soy Meal $/ton $200 $400 $600 $800 $0 1/3/2006 7/3/2006 1/2/2007 7/2/2007 1/2/2008 7/1/2008 1/1/2009 7/1/2009 1/1/2010 7/1/2010 1/1/2011 7/1/2011 1/1/2012 Corn 7/1/2012 1/1/2013 7/1/2013 Soy Bean Meal Source: Monthly Average of Daily Closing Prices per Chicago Board of Trade 1/1/2014 7/1/2014 1/1/2015 7/1/2015 1/1/2016 7/1/2016 1/1/2017 7/1/2017 1/1/2018 7/1/2018 1/1/2019 7/1/2019 1/1/2020 $0 $2 $4 $6 $8 Corn $/bushel
F EED COSTS - CENTS PER DOZEN PRODUCED Approximate impact on $ impact on production 60 Feed ingredient Approximate change in feed costs per dozen cost for the FY 2019 Corn $0.28 change per bushel $ 0.01 $ 8,767,050 57 Soybean Meal $27 change in per ton $ 0.01 $ 8,767,050 55 55 54 53 51 50 49 49 48 48 48 47 46 45 45 44 43 43 43 42 42 42 42 42 42 41 41 41 41 41 40 40 40 39 39 39 38 38 35 30 1Q12 3Q12 4Q12 2Q13 3Q13 4Q13 1Q14 3Q14 4Q14 2Q15 3Q15 1Q16 3Q16 4Q16 2Q17 3Q17 1Q18 3Q18 4Q18 2Q19 3Q19 1Q20 2Q20 3Q20 2Q12 1Q13 2Q14 1Q15 4Q15 2Q16 1Q17 4Q17 2Q18 1Q19 4Q19 16
G ROWTH STRATEGY ▪ Pursue selected acquisitions of existing shell egg production and processing facilities in key locations and markets ▪ Enhance production capacity and efficiency ▪ Increase value-added specialty egg business including cage-free capacity 17
P URSUE ACQUISITION OPPORTUNITIES ▪ Leverage solid track record with completion of 22 acquisitions since 1989 ▪ Extend ability to identify, execute and integrate additional operations ▪ Expand capabilities in existing markets and broaden geographic reach ▪ Enhance national presence and strengthen customer relationships 18
A CQUISITION OPPORTUNITIES Cal-Maine Foods 44.99 S&R Egg Farm 4.53 Demler Brothers 1.50 Rose Acre Farms 26.60 Sauder's Egg 4.50 Demler Enterprises 1.50 Versova Holdings 21.10 National Food Corp. 4.00 Dutt & Wagner 1.44 Hillandale Farms 20.00 Konos Inc. 3.40 Simpson's Eggs 1.35 Daybreak Foods 14.00 Pearl Valley Eggs 2.90 Dakota Layers LLP 1.30 Michael Foods 13.30 Esbenshade Farms 2.80 Sperry Farms 1.30 Rembrandt Enterprises 11.90 Forsman Farms 2.60 J.S. West & Company/JEM Eggs 1.28 MPS Egg Farms 10.90 Ritewood/Oakdell Egg Farms 2.60 3 Puglisi Brothers 1.27 Center Fresh Group 10.80 Creighton Brothers 2.40 Mercer Landmark 1.25 Prairie Star Farms 10.80 Sunrise Acres Egg Farm 2.31 Morning Fresh Farms 1.25 Herbruck's Poultry Ranch 8.60 Giroux's Poultry Farm 2.25 Fassio Egg Farms 1.20 Weaver Brothers 8.55 CHS 2.21 Hertzfeld Poultry Farms Inc. 1.05 Opal Foods 7.79 Central Valley Eggs 2.20 Feather Crest 0.98 Fremont Farms of Iowa 7.06 Kreher's Eggs 2.09 Chino Valley Ranchers/MCM Poultry 0.85 Kreider Farms 6.08 Minnich Poultry 2.00 Colorado Eggs 0.80 ISE America 5.80 Schipper Eggs LLC 1.85 Wilcox Farms 0.79 Hickman's Egg Ranch 5.60 Heritage PMS/LaValle Egg Farms 1.70 Hidden Villa Ranch 0.70 Sparboe Farms 5.58 Lathem Farms 1.67 Hillside Poultry Farms Inc. 0.70 Gemperle Farms 5.10 Country Charm Eggs 1.64 Weber Family Farms 0.52 Cooper Farms 5.00 Braswell Egg 1.60 Sunrise Farms LLC 0.50 Sunrise Farms Inc. 5.00 Egg Innovations 1.60 Demler Egg Ranch 0.35 Mid-States Specialty Eggs 4.94 Wenger Feeds/Duchland Farms 1.60 Vital Farms 0.30 Wabash Valley Produce 4.66 Berne Hi-Way Hatchery Inc. 1.50 Total 342.28 Layers in Production, December 31, 2019, in millions Source: Egg Industry Magazine - February 2020 19
A CQUISITIONS – Foodonics International, Inc. (dba Dixie Egg Company) - Acquired 2016 Includes capacity for 1.6 million laying hens and related feed production, milling and distribution facilities in Georgia and Florida as well as contract grower arrangements for an additional 1.5 million laying hens. – Happy Hen Egg Farms, Inc. - Acquired 2017 Includes capacity for 350,000 laying hens and distribution facilities near Harwood and Wharton, Texas. Site designed for capacity of up to 1.2 million laying hens. – Featherland Egg Farms, Inc. - Acquired 2018 Includes capacity for 600,000 laying hens, a feed mill and related production and distribution facilities near Marion, Texas. 20
R ED RIVER VALLEY EGG FARM, LLC Cal-Maine Foods and Rose Acre Farms entered a production joint venture to build a cage-free shell egg production complex near Bogata, Red River County, Texas ▪ Provides for capacity of approximately 1.8 million laying hens, with permits for up to 2.9 million hens ▪ Production facilities fully online in 2017 ▪ Enhances ability to meet growing demand for cage- free and other specialty eggs 21
M AHARD EGG FARM, INC. ▪ On November 20, 2019 Cal-Maine Foods acquired certain assets of Mahard Egg Farm, Inc. ▪ Includes capacity for 3.9 million hens, feed mill, and related production facilities in Chillicothe, Texas, and Nebo, Oklahoma, and a distribution warehouse located in Gordonville, Texas. ▪ Sites are permitted for capacity of up to 8.0 million laying hens. 22
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