ANIMEX Introduction 2010

1. ANIMEXIntroduction2010

2. Corporate Animex; Smithfield Smithfield 100% 100% Animex AgriPlus

3. Smithfield Is the World’s Largest Pork Producer Rabobank, 2010.

4. Smithfield Basics 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 * FY 2010: April 2009-March 2010

5. Animex Is Poland’s Largest Meat Producer Net Sales[bn PLN] Nestle • Net sales FY 2010*: 3,1 bn PLN Danone • 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 * FY 2010: April 2009-March 2010

6. Turnaround 1/2 . . . .

7. Turnaround 2/2 „Socialist-style” management Today’s management Centralized sales, cooperation and knowledge transfer between the plants; consolidation of logistics and finance, management by objectives Independently managed production plants; operations and accountability on plant level; internal competition Execution-oriented culture Culture of survival and short-term sales maintainence Customer focus, among other employing professional customer satisfaction surveys Customer is unimportant („they will come to us and buy anyway”) Increasing sales volume; balanced product mix Maintain current sales, no ambition to develop sales and earnings Cost control, cost benchmarking, focus on existing assets’ payback; financial discipline , control of liabilities and receivables „Costs are inevitable”, „money comes and goes”; investing in „fancy things” Building high performance team „Everybody has to have a job”, qualifications didn’t really matter

8. 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)

9. 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.

10. Poland, our home market

11. Poland vs. US StatesKey Parameters „EU Europe” 27 states „Non-EU Europe” 27 states Kiruna, Sweden1.100 mi • 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). Yekaterinburg, Russia1.600 mi Galway, Ireland1.200 mi Lisbon, Portugal1.700 mi

12. Poland: A Country Becomes Wealthier Average Gross Salary [monthly, in PLN] Structure of Household Expenses [in per cent] GfK, 2010.

13. Meat and meat products Alcohol Soft drinks Sweets Culinary Dairy ~30 bn PLN Meat Is The Largest Polish Food Market Nielsen, Animex.

14. Our products and brands

15. Categories, ProductsHot-Dog (trade & consumer form)

16. Categories, ProductsDried-SmokedSausage, TraditionalSausage (trade & consumer form)

17. Categories, ProductsSmoked Products (trade & consumer form)

18. Categories, ProductsSmoked Products (trade & consumer form)

19. Categories, ProductsCanned Products (trade & consumer form)

20. Categories, ProductsConvenience Food (trade & consumer form)fresh & frozen

21. Categories, ProductsFresh & SemiMeats (trade & consumer form)

22. Exclusive Access To Largest Polish Hog Base Contract Procurement Smithfield Procurement

23. 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

24. Animex Brands Broad and Diversified Portfolio Leadership in Packed Deli Meats • 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 Nielsen, 2010.

25. TV TV Animex Brand Portfolio Product, Price, Positioning

26. Distinct Ownership of Quality Producer 1 Producer 2 92% Any Animex brand Sokołów (umbrella) 81% Morliny 66% 61% Krakus Morlinki 49% 47% Indykpol (umbrella) Berlinki 45% 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. Animex Brand Portfolio Consumer Perception and Brand Strength 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.

27. Leadership in Retail Chains (1/2) Category Ownership in Dry Sausage and Hot Dogs Total Packed Deli Meats Dry Sausages Hot Dogs Nielsen, 2010.

28. Leadership in Retail Chains (2/2) Packed Deli Meats Value Share Between 25% and 40% Total Chain 1 Chain 3 Chain 4 Nielsen, 2010.

29. Private Label Development Annual Turnover With Poland’s Largest Retailer +60% +68% +65% +33%

30. 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

31. Animex export approvals We have export permissions for more than 70 important countries of the world. • 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

32. Thank you for your attention