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ANIMEX

Introduction2010

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Corporate Animex; Smithfield

Smithfield

Animex

100%

AgriPlus

100%

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Smithfield Is the World’s Largest Pork Producer

Rabobank, 2010.

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Smithfield Basics

* FY 2010: April 2009-March 2010

Key facts

Strategy: hogs + processed meat

Operations in the US, Europe, and

China

NYSE listed

Net sales FY 2010*: US$ 11bn,

#3 worldwide, #1 in pork

Net loss FY 2010: (US$ 101M)

Support to Animex

Large, exclusive breeder base

Knowledge transfer

Financial backup

Smithfield Locations

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Nestle

Danone

Animex Is Poland’s Largest Meat Producer

Net sales FY 2010*: 3,1 bn PLN

Net Sales[bn PLN]

* FY 2010: April 2009-March 2010

13 production plants 4x red meat

4x white meat

2x feed

1x chicken hatchery

2x feather

Employees: 7,700

Distribution in all channels

Exclusive access to largest Polish breeder base

(owned by Smithfield)

All required quality certificates

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Turnaround 1/2

-150

-100

-50

0

50

100

150

2001 - 2002 2003 - 2004 2005 - 2006 2007 - 2008 2009 - 2010

-3 000

-1 000

1 000

3 000

5 000

7 000

PBT Sales

.

.

.

.

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Turnaround 2/2

Independently managed production plants; operations and accountability on plant level; internal competition

Culture of survival and short-term sales maintainence

Customer is unimportant („they will come to us and buy anyway”)

Maintain current sales, no ambition to develop sales and earnings

„Costs are inevitable”, „money comes and goes”; investing in „fancy things”

„Everybody has to have a job”, qualifications didn’t really matter

Centralized sales, cooperation and knowledge transfer between the plants; consolidation of logistics and finance, management by objectives

Execution-oriented culture

Customer focus, among other employing professional customer satisfaction surveys

Increasing sales volume; balanced product mix

Cost control, cost benchmarking, focus on existing assets’ payback; financial discipline , control of liabilities and receivables

Building high performance team

„Socialist-style” management Today’s management

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Investment in human capital

INSEAD (France) – top management training Award „Investor in Human Capital” (received by only 10 companies

in Poland) Human resources development

Assessment Training Project development

Master Academy (100 participants) Foremen Academy (in progress – planned 340 participants) Meat & Poultry Brown Belt Training Program, Iowa State University

(17 managers participated)

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Business Ethics, Smithfield Code of Conduct

One of Smithfield’s most treasured assets is its reputation for integrity and fairness.

Smithfield wants to be responsive to the concerns of the communities in which it operates and exercise the highest degree of honesty and integrity in its dealings with others .

Therefore Smithfield has developed a Corporate Code of Conduct and Business Ethics, which is the basis of its and its subsidiaries operations.

Animex employees are trained on the Code’s content and application. There is an Annual Certification Process in place which requires each

employee on managerial position to certify they know the Code and are not aware of any breach of it by any employee.

There is an Employee Ethics Hotline – toll free and anonymous – for reporting non-compliance with the Code.

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Poland, our home market

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Poland vs. US StatesKey Parameters

Key facts about Poland:

• Area: 121.000 sq mi (like New Mexico, #69 worldwide);

• Population: 38.5M (like California, #31 worldwide),

38% living in rural areas;

• GDP: $567 bln (like Illinois; #23 worldwide);

• GDP per capita: $15.000 (#52 worldwide).

Galway, Ireland1.200 mi

„Non-EU Europe”27 states

„EU Europe”27 states

Lisbon, Portugal1.700 mi

Kiruna, Sweden1.100 mi

Yekaterinburg, Russia1.600 mi

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Poland: A Country Becomes Wealthier

43% 41% 39% 37% 34% 34% 31% 30% 28% 28% 28% 28% 28% 27%

7%7% 7% 6% 6% 6% 5% 5% 5% 5% 6% 6% 6%

17% 17% 17% 18% 18% 22%18% 20% 21% 20% 20% 21% 19% 20%

6%5% 5% 5% 5% 5% 6% 6%

4%5% 5% 5% 5% 5% 5% 5%

7% 7% 11%7%

8%8% 8% 8% 8% 8% 9% 9% 9%

9% 10% 7% 7% 12%13%

14% 13% 13% 14% 14%15% 15% 15%

10% 10% 11% 12% 12% 7%12% 14% 15% 15% 15% 11% 12% 12%

7%

4% 4% 5% 5% 6%6%

4% 4% 4% 4% 4%5%

10%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Other

Transport & communication

Education & leisure

Healthcare

Furnishing, householdequipment and routinemaintenance of the houseRent, electricity, heating etc.

Clothing & footwear

Food & drink (non-alcoholic)

Structure of Household Expenses [in per cent]

Average Gross Salary [monthly, in PLN]

GfK, 2010.

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Meat Is The Largest Polish Food Market

~30 bn PLNMeat and meat products

Alcohol

Soft drinks

Sweets

Culinary

Dairy

Nielsen, Animex.

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Our products and brands

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Categories, ProductsHot-Dog (trade & consumer form)

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Categories, ProductsDried-Smoked Sausage, Traditional Sausage (trade & consumer form)

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Categories, ProductsSmoked Products (trade & consumer form)

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Categories, ProductsSmoked Products (trade & consumer form)

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Categories, ProductsCanned Products (trade & consumer form)

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Categories, ProductsConvenience Food (trade & consumer form)

fresh & frozen

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Categories, ProductsFresh & Semi Meats (trade & consumer form)

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Exclusive Access To Largest Polish Hog Base

Contract Procurement

Smithfield Procurement

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Production, Procurement, Quality

RED MEAT

Slaughter: Cattle: 54 K heads Hog: 1,9 mln heads

Livestock procurement : Appr. 1.000 contract farmers

Quality systems Positive List System (Japanese) PSQ (implementation in

progress) Traceability

Complete traceability compliant with UE requirements

WHITE MEAT

Slaughter: Chicken: 37,4 mln heads Goose: 1,1 mln heads Turkey: 36,8 K tons

Livestock procurement : Contract farmers (92%) Own production of broiler birds

(80%) Own production of feed (44%)

Quality systems GHP GMP HACCP

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Leadership in Packed Deli Meats

Nielsen, 2010.

Broad and Diversified Portfolio

Red meat, white meat Pork, beef, veal, chicken, turkey, goose

Fresh meat, semi-processed, processed Fresh meat and poultry Marinates and other culinary meats Deli meats, cold cuts Canned meats Ready meals, convenience food

Packed meats for self-service, „unpacked” meats for deli counter

Leader in hypermarkets

Brands valued by both customers and consumers Strategic brands – Krakus, Morliny, Yano Regional brands (Poland only) Private label products

Strong marketing support

Animex Brands

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Animex Brand Portfolio Product, Price, Positioning

Brand Product Range Price Segment

Image / Positioning

Limited range: Dry sausages, deli hams, canned

meat, pate, smoked products; predominantly red meat

Semi-processed/ culinary meats

Premium Traditional, top quality, something special

Claim: „Deli meats as they used to be”

Extended range: Hot dogs, all types of deli; red and

increasingly white meat Semi-processed/ culinary meats Convenience food

Premium / Mainstream

Modern, innovative, convenient, for the demanding consumer

Claim: „Never enough fun”

Wide range: All types of deli, white meat only Convenience food Canned pate

Mainstream / Economy

Good value for money, always something for every consumer

Claim: „The best for everyday shopping”

Widest range: All types of deli, red and white meat Semi-processed/ culinary meats Convenience food Canned meat

Mainstream / Economy

No particular positioning

TV

TV

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Animex Brand Portfolio Consumer Perception and Brand Strength

81%

66%

61%

49%

47%

45%

92%Any Animex brand

Sokołów (umbrella)

Morliny

Krakus

Morlinki

Indykpol (umbrella)

Berlinki

Awareness: Four within Top 6 Brands

Nine of ten Polish consumers know at least one of Animex’ brands.

Four of six top recognized brands belong to Animex.

Sokołów is the best recognized single consumer brand.

Consumer research, 2010.

Krakus Morliny Sokołów Indykpol

Smoked, hams

Hot dogs - ++ -

Dry sausages ++ - - -

Kabanosy ++ - -

Formed - ++ ++

Pate - - ++

Trad. sausages - ++ -

Salami ++ -

Distinct Ownership of Quality

In consumers’ view, ... Krakus makes the best dry sausages and

kabanosy; Morliny make the best hot dogs; Producer #1 scores on sausages and

salami;

There is no brand that „owns” hams and smoked products.

Producer 1 Producer 2

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Leadership in Retail Chains (1/2)

Nielsen, 2010.

Category Ownership in Dry Sausage and Hot DogsTotal Packed Deli Meats Dry Sausages

Hot Dogs

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Leadership in Retail Chains (2/2)

Nielsen, 2010.

Packed Deli Meats Value Share Between 25% and 40%Total Chain 1

Chain 3 Chain 4

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Private Label DevelopmentAnnual Turnover With Poland’s Largest Retailer

+60%

+68%

+65%

+33%

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Export customers – long-term relations

USA – Krakus ham Lipari Jewel Wal-Mart

Japan – pork loin, bellies Seven Eleven

Japan – hot dogs IKEA

UK – processed meat, Morliny brand

Tesco UK Morrison’s ASDA Iceland

Germany – Yano canned products Aldi Rewe Edeka

Denmark – hot dogs, sausages, hams

Netto Coop SuperGros

Lithuania - hot dogs, sausages Maxima

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Animex export approvals

European Union – all plants

Other European countries Switzerland – Starachowice, Morliny, all white

meat plants Turkey – Dębica Norway - Morliny

Asia Japan – all red meat plants, Dębica, Opole, Iława South Korea – all red meat plants, Iława Vietnam – all plants Hong Kong – Szczecin, Starachowice, Ełk, all

white meat plants

Africa Ivory Coast – all red meat plants, Iława Ghana – all red meat plants Congo – all red meat plants, Iława

North America USA – Szczecin, Starachowice, Morliny Canada – Ełk, Morliny, Iława Mexico – Starachowice, Iława

Central & South America Cuba – Starachowice Guatemala - Iława Nicaragua - Iława Columbia - Iława

Australia & Oceania Australia - Iława New Zealand – Szczecin, Iława

We have export permissions for more than 70 important countries of the world.

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Thank you for your attention