Smithfield Environmental Conference John Morrell Food Group – Sustainability Update June 6, 2012.

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Smithfield Environmental Conference John Morrell Food Group Sustainability Update June 6, 2012 Slide 2 18 Operating Facilities; 9,800 employees $3.7 Billion in sales per year (FY2011) Products: Hams; Smoked Sausage; Hot Dogs; Deli Meats; Bacon; Pulled Pork; Dry Sausage; Pet Food; and Spices Major Brands: John Morrell; Curlys; Armour; Eckrich; Margherita; Healthy Ones; Patrick Cudahy; Carando; Kretschmar; Premium Pet Health; and Saratoga The John Morrell Food Group Slide 3 Slide 4 This presentation will focus on our sustainability initiatives in the areas of: Environmental Employees Food Safety & Quality Communities Sustainability Initiatives Slide 5 100% Compliance, 100% of the Time! ECAP Audit Scores: St. Charles FY2007: 68% FY2010: 98% Curlys:FY2008: 83% FY2012: 95% PPH-CentralFY2005: 58% FY2010: 93% Omaha:FY2007: 73% FY2011: 93% Mason City: FY2007: 78% FY2012: 90% Springdale:FY2002: 70% FY2010: 90% St. James:FY2007: 58% FY2010: 90% Mohawk:FY2003: 69% FY2010: 89% 814 Americas: FY2007: 69% FY2012: 86% Slide 6 100% Compliance, 100% of the Time! NOVs: CY2008:1 CY2009:4 CY2010:16 CY2011:11 CY2012:0 Year to Date Slide 7 Maintain ISO 14001 Registration ISO 14001 Surveillance Audits: Springdale (2010): No Minor Nonconformance, No OFIs Omaha (2011): No Minor Nonconformance, No OFIs Sioux Falls (2011): One Minor Nonconformance, No OFIs Mason City (2011): One Minor Nonconformance, One OFI Golden Crisp (2012): No Minor Nonconformances, Two OFIs Mohawk Packing (2012): One Minor Nonconformance, No OFIs Patrick Cudahy (2012): One Minor Nonconformance, No OFIs TOTAL:7 Audits4 Minors 3 OFIs Slide 8 10% Less in FY2016 as Compared to FY2008 (Production Weighted) : Water Usage; Energy Usage; and Solid Waste Disposal Slide 9 Water: Saratoga:-90% Omaha+13% Golden Crisp:-50% PPH-Central+17% Springdale:-44% PPH-West:+17% St. James:-21% Curlys Foods+24% St. Charles:-16% Springfield+44% Mohawk:-9% Patrick Cudahy:-9% Junction City -9% Sioux Falls -8% 814 Americas:-7% Mason City -6% Peru-3% Slide 10 Natural Gas: Golden Crisp-75%Omaha+2% Saratoga-70%Springfield+5% Mason City -19%Mohawk+6% St. Charles:-17%814 Americas:+7% Junction City -16% Peru+16% Springdale-13% Patrick Cudahy+23% PPH-Central:-2% Curlys Foods+37% St. James:-1% PPH-Central:+111% Slide 11 Electricity: Golden Crisp-48%Springdale:+2% Saratoga-31% Peru+3% PPH-West-16% St. James:+4% Patrick Cudahy-14% Curlys Foods+11% Mason City -13% Springfield+13% St. Charles:-11% PPH-Central+13% 814 Americas-10% Omaha+28% Sioux Falls-8% Junction City -6% Mohawk:Even Slide 12 Solid Waste: Peru-69% Golden Crisp+4% St. Charles:-53% Curlys Foods+8% Saratoga-51% Omaha+8% PPH-West-46% Springdale+30% Springfield-34% PPH-Central+33% Mason City -29% Patrick Cudahy-21% Sioux Falls -20% St. James:-10% Junction City -10% Mohawk-5% Slide 13 Environmental Metrics Summary: From FY2008 to FY2012, on a production weighted basis, the John Morrell Food Group achieved a: 12% Decrease in Water Usage 7% Decrease in Natural Gas Usage 7% Decrease in Electrical Usage 14% Decrease in Solid Waste Disposal (even with a 4% decrease in overall production) Slide 14 Packaging Reduction: John Morrell, Sioux Falls, SD and Armour-Eckrich, St. James, MN recently completed a lid and tub packaging reduction project that uses less plastic in their lunch meat products. With over 25 million lids/tubs per year, they have reduced plastic usage by: 135,000 lbs per year and saved more than $590,000 per year. Slide 15 Other Cool Stuff: Peru Zero Landfill Sioux Center and Sioux Falls Land Application of Sludges Springdale Compost of Cellulose Casings Springfield Full Facility Lighting Retrofit Patrick Cudahy Wisconsin DNR Green Tier Program Patrick Cudahy US DOE Save Energy Now Program 814 Americas Recognized by New Jersey DEP and entered into NJ Environmental Stewardship Program for it outreach to the local community regarding sustainability and environmental stewardship Slide 16 Employees JMFG Totals: 20102011 % Reduction DART3.84 3.0920% DAW1.27 1.21 5% Behavioral Risk Improvement (BRI) in St. Charles, Omaha, Sioux Center, Springfield, and soon in Peru Slide 17 Employees Slide 18 Food Safety and Quality May 2, 2012: American Meat Institute Foundation Scientific Achievement Award to John Morrells: Dr. Warren Dorsa, PhD., VP Food Safety & Quality & Dr. Peter Taormina, PhD., Principal Microbiologist For cutting edge research relative to listeria in hams, bacon, and hot dogs. Slide 19 Communities - Helping Hungry Homes In FY2012, the John Morrell Food Group donated 1.46 million food servings to people in need through the Smithfield Foods Helping Hungry Homes program. Slide 20 Communities - Learners to Leaders Saratoga Specialty Foods in Bolingbrook, IL partnered with Junior Achievement of Chicago and the Taco Bell Foundation for Teens and hosted a Financial Awareness event for 180 high school students, with topics including budgeting; identity theft; career paths; college financial aid to better prepare the students for life after high school. They also hosted local students for a Job Shadowing day at the Saratoga facility. Slide 21 Communities - Learners to Leaders John Morrell in Sioux Falls has partnered with Southeast Technical College and funded their Learners to Leaders program for the past 5 years and has graduated 137 students from the program. Slide 22 Charitable Donations From May 1, through July 4, 2012 Eckrich will donate $0.05 for each purchase of specially marked product up to $200,000 to support Operation Homefront, whose mission is to provide emergency financial aid and other assistance to families of our service members. Slide 23 Charitable Donations Women Heart In February 2012 the John Morrell Food Group and Healthy Ones brand made a $50,000 donation to Women Heart to help prevent heart disease in women. Slide 24 Charitable Donations In November 2011 the John Morrell Food Group and Healthy Ones brand made a $50,000 donation to the Breast Cancer Research Foundation to help increase breast cancer awareness. Slide 25 Communities Tornado Response Springfield, MA June 1, 2011 Armour-Eckrich, Springfield partnered with Red Cross and donated 5,000 lbs of ready to eat meat products and assisted Rebuilding Springfield where facility representatives painted and raked homes directly affected by the tornado. Slide 26 Communities Environmental Classroom Mason City, IA May 2011 Armour-Eckrich, Mason City partnered with the Iowa Department of Natural Resources and hosted 255 fifth graders. Using WWMC kits, they conducted water testing and discussed water quality and pollution with the students. Slide 27 FY2012 Sustainability Scorecard Junction City103%Golden Crisp85% Saratoga 103% Springdale83% Mason City102%Springfield82% Peru100%Patrick Cudahy79% 814 America93%PPH-West78% St. Charles91%PPH-Central74% St. James90%Mohawk 72% Sioux Falls89%Curlys Foods72% Omaha88% Slide 28 Committed to Social Responsibility