tyson foods investor day

1 | Tyson Foods Investor Day | December 10, 2014

Builtforgrowth.Investor DayDecember 10, 2014


Agenda 9:30 a.m Welcome

John Tyson, Chairman

9:40 a.m. The Big Picture

Donnie Smith, President & CEO

10:25 a.m. Financial Update

Dennis Leatherby, CFO

10:50 a.m. Innovation and Consumer Insights

Sally Grimes, Growth

11:10 a.m. Building Brands

Andy Callahan, Retail Consumer Brands

11:50 a.m. Lunch

Corporate Chef Mario Valdovinos has an exciting and surprising menu planned for you using great products from Tyson Foods. Enjoy lunch while networking with the Tyson Team.

1:00 p.m. Fireside Chat

Donnie King, North American Operations & Foodservice

Bernie Adcock, Supply Chain

Tom Hayes, Food Service

Wes Morris, Prepared Foods Operations

Steve Stouffer, Fresh Meats

Noel White, Poultry

1:45 p.m. Dessert

2:05 p.m. Corporate Reputation

Sara Lilygren, Corporate Affairs

2:25 p.m. Ask Me Anything

Q&A with the Tyson Team

3:00 p.m. Program Concludes


Forward-Looking StatementsCertain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance. These forward-looking statements are subject to a number of factors and uncertainties which could cause our actual results and experiences to differ materially from the anticipated results and expectations expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the effect of, or changes in, general economic conditions; (ii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (iii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (iv) successful rationalization of existing facilities and operating efficiencies of the facilities; (v) risks associated with our commodity purchasing activities; (vi) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (vii) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (viii) changes in availability and relative costs of labor and contract growers and our ability to maintain good relationships with employees, labor unions, contract growers and independent producers providing us livestock; (ix) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (x) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xi) significant marketing plan changes by large customers or loss of one or more large customers; (xii) adverse results from litigation; (xiii) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemic or extreme weather; (xiv) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xv) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xvi) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (xvii) failures or security breaches of our information technology systems; (xviii) effectiveness of advertising and marketing programs; and (xix) those factors listed under Item 1A. “Risk Factors” included in our Annual Report filed on Form 10-K for the period ended September 27, 2014.

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Tyson Foods IR AppYou can find financial information, transcripts, presentations, press releases, and more on our IR app. Just search for “Tyson IR” in the app store to download.

Tyson Twitter Handle@TysonIR


John Tyson brings to Tyson Foods’ board critical understanding of the company, its operations and the foodprocessing industry. He has devoted his entire working career to Tyson Foods. The grandson of the company’s founder, John has been part of the company since he was a teenager, has worked in almost every department, and eventually became the company’s chief executive officer. He currently serves as Chairman of the board and has a substantial financial interest in Tyson Foods through his interest in the Tyson Limited Partnership, which retains control of the company. John has been crucial in building the company into a global leader with a conscience, focused on feeding the world great food, made with the utmost respect. Under his leadership, Tyson Foods has expanded its portfolio of products beyond chicken through major acquisitions. In 2001, the company purchased IBP, inc., the nation’s largest beef and pork processor. In 2014, Tyson Foods acquired The Hillshire Brands Company, a leading producer of branded, prepared foods. The combination of Tyson and Hillshire created a single company with more than $40 billion in annual sales and a portfolio of recognized brands, such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®,Ball Park®, Wright®, Aidells® and State Fair®. John and other senior managers led the development of Tyson Foods’ “Core Values,” which set goals and standards. The company strives to be an honorable company that employs diverse people and is respectful of their faith. His work has helped Tyson Foods take pride in the safety and quality of its products, and its dedication to meet customers’ and consumers’ needs. The company feeds families, the nation and the world with trusted food products. He is actively involved in several philanthropic endeavors, including Tyson Foods’ charitable giving, which focuses on health and human services, community development, education, hunger relief and supporting military veterans. John has received numerous awards and recognitions for his commitment to the common good, improvement of local communities and the world at large. He is a graduate of Southern Methodist University in Dallas, Texas.

John TysonChairman of the Board


Donnie Smith’s enthusiasm for Tyson Foods is contagious among the company’s 124,000 Team Members. Appointed to his role as president and CEO in 2009, his passion is the hallmark of his tenure at the company, which he joined in 1980. Daily he guides Tyson Foods to be a company with a conscience, focused on feeding the world great, affordable food, while also making a positive difference in people’s lives.

Through his career, Donnie has worked to learn every angle of the Tyson Foods business. He joined Tyson, working in poultry operations for seven years in Tennessee before moving to the company’s headquarters in Springdale, Ark., where he started as a commodity buyer. He was named director of commodity purchasing in 1991 and during the next several years added complementary responsibilities to his management portfolio: logistics, purchasing and information systems in 2006; and engineering, food safety and quality assurance, and environmental health and safety in 2007. He moved into the company’s consumer products division in 2008 and was named senior group vice president of poultry and prepared foods in early 2009, the same year he was appointed as president and CEO.

A native of Tennessee, Donnie graduated from the University of Tennessee at Knoxville with a bachelor’s degree in animal science.

Donnie SmithPresident & Chief Executive Officer


Dennis Leatherby oversees worldwide finance and accounting functions for Tyson Foods and represents the company on matters involving investors, banks, ratings agencies, auditors and other financial matters. Dennis, who has played an active role in many of Tyson Foods’ acquisitions, was appointed executive vice president and Chief Financial Officer in 2008.

He joined Tyson Foods in 1990 as assistant Treasurer and has since held several other finance-related management positions, including Tyson Foods’ senior vice president of finance and Treasurer, and interim Chief Financial Officer.

Dennis ensures the company’s fiscal responsibilities are in line with its stated commitment to make great food and make a difference in people’s lives. He has helped Tyson Foods become one of the world’s largest processors and marketers of chicken, beef and pork, and a leader that takes pride in the safety and quality of its products.

He was named Outstanding Financial Executive of the Year (2009-10) by his alma mater, Kansas State University College of Business Administration. He is currently on the board of the Garrison Financial Institute within the Sam M. Walton College of Business at the University of Arkansas; an advisory council member of the Kansas State University, College of Business Administration; and member of the Staff-Parish Relations Committee at Central United Methodist Church in Fayetteville, Ark. Dennis earned bachelor’s degrees in both accounting and finance from Kansas State University.

Dennis LeatherbyChief Financial Officer


Sally Grimes leads Tyson Foods’ Insights, Innovations, R&D, Retail Sales, and Global Brand Strategy teams to maximize global growth of our consumer and foodservice brands.

Sally was previously chief innovation officer for The Hillshire Brands Company and also served as president of the Hillshire Brands Gourmet Food Group (GFG).

Sally joined The Hillshire Brands Company in 2012 and was responsible for the company’s innovation process, including identifying strategies, business opportunities and new technologies, as well as developing new capabilities with partners, new business models and new industry structures to serve those opportunities.

In addition, Sally oversaw the GFG, where she was responsible for gourmet artisanal brands, including Aidells®, Gallo Salame®, and Golden Island® jerky.

Previously, Sally served as global vice president of marketing at Newell Rubbermaid, Inc., and spent ten years at Kraft Foods, Inc., in a variety of brand management positions, rising from associate brand manager to senior category business director. She began her career in banking.

Sally received her Master of Business Administration from the University of Chicago. She was recognized by Fast Company as one of The “100 Most Creative People in business 2012” and by Ad Age as one of the “24 Women to Watch in 2013.”

Sally GrimesGrowth


Andy Callahan manages all retail consumer brands, including Hillshire consumer brands (such as Jimmy Dean®, Ball Park®, Hillshire Farm®, and Sara Lee®), Tyson’s consumer brands (such as Tyson® frozen, value-added poultry and Wright® Brand bacon) and Hillshire’s Gourmet Food Group.

Andy previously served as president, Retail for The Hillshire Brands Company, managing the company’s consumer-facing meats and frozen desserts businesses in North America. Prior to this position, he served as senior vice president, chief customer officer for Sara Lee Corporations’s North American operations, as well as president of Sara Lee’s $1.8 billion North American Foodservice segment and vice president of marketing for Sara Lee’s breakfast and snacking business unit.

Andy joined Sara Lee in 2008 from Kraft Foods, Inc., where he spent 13 years in various positions in increasing responsibility in marketing, sales, and general management. His roles at Kraft included vice president, customer development on Kraft’s SUPERVALU business, general manager of The Churney Company and leading Kraft’s processed cheese portfolio.

Prior to Kraft, Andy spent seven years in the Navy as a Naval Flight Officer.

Andy holds a bachelor of science degree in mechanical engineering from the United States Naval Academy and a master of business administration degree from Florida Institute of Technology.

Andy CallahanRetail Consumer Brands


Donnie King oversees Tyson Foods’ poultry, fresh meats and non-branded prepared foods businesses, as well as the legacy Tyson and Hillshire foodservice businesses.

Before taking his current position, Donnie was named Tyson Foods’ president of Prepared Foods, Customer and Consumer Solutions in late 2013. Prior to that time, he served as senior group vice president of Poultry and Prepared Foods, a role he assumed in 2009. He is responsible for all sales and marketing at Tyson Foods, as well as for the company’s expanding Prepared Foods group.

Previously, Donnie served as group vice president of refrigerated and deli, fowl and export sales. He also held a variety of senior management positions, including senior vice president of food service operations; senior vice president of consumer products operations; and group vice president of poultry and prepared foods operations.

Donnie joined Tyson Foods in 1982 and, soon after, became a poultry plant manager, before progressing as a poultry complex manager and director of logistics.

He is a member of the executive committee of the National Chicken Council’s board of directors and a former member of the U.S. Poultry and Egg Association. Donnie has a bachelor’s degree in business management from the University of Arkansas at Monticello.

Donnie KingNorth American Operations &Foodservice


Bernie AdcockSupply Chain

Bernie Adcock is the chief supply chain officer for Tyson Foods and helps connect the company’s key business processes. He’s involved in planning and coordination for important areas such as sales, operations, supply, capacity, demand and the company’s distribution networks. He also oversees foodservice pricing.

Bernie has been a part of Tyson Foods since 1990, when he started working in live poultry operations in Glen Allen, Virginia. He has since served as a poultry complex manager, vice president and senior vice president of operations, senior vice president and general manager of the small bird business unit and senior vice president of business integration. He was senior vice president of poultry and prepared foods shared services before accepting hiscurrent position.

Bernie is a graduate of Virginia Tech University with a bachelor’s degree in poultry science.


Tom HayesFood Service

Thomas P. Hayes leads the combined Tyson and Hillshire foodservice businesses. Before taking his current position, he was chief supply chain officer for The Hillshire Brands Company, where he was responsible for operations including procurement, manufacturing, food safety, and quality, engineering and logistics.

Previously, Tom was senior vice president and chief supply chain officer for Sara Lee North America, responsible for the company’s North American Retail and Foodservice businesses’ supply chain activities. Prior to this role, Tom was president of Sara Lee Foodservice.

Before joining Sara Lee in 2006, Tom served as group vice president of US Foodservice, Inc., where he oversaw the turnaround needs of broad line distribution facilities in the northeast.

A 27-year veteran of the consumer products industry, Tom has held general management, sales and marketing roles at ConAgra Foods, The Fort James Corporation, Stella Foods, and Kraft Foods.

Tom has served on the board of directors for the International Foodservice Manufacturers Association (IFMA). Tom earned a bachelor’s degree in psychology from the University of New Hampshire and and MBA from Northwestern University’s Kellogg School of Management.


Wes Morris oversees prepared foods operations for Tyson Foods. This includes the production of processed foods, such as bacon, meatballs, pepperoni, soups, and sauces, as well as bakery products, including tortillas, pizza crusts and breadsticks. It also includes the production of well-known branded products such as Ball Park® hot dogs and Hillshire Farm® deli meats and Sara Lee® deli meats. Engineering Services, which manages the construction, innovation and other building needs for Tyson’s Prepared Foods and Poultry business, also reports to Wes.

Wes joined Tyson Foods in 1999 and has held a number of officer and senior-officer level positions, most recently serving as group vice president of consumer products, where he led the team responsible for selling branded and private label food products to retailers. Prior to joining Tyson Foods, Wes spent 13 years in the consumer products industry, including sales leadership roles for The Dial Corp. and The Andrew Jergens Co.

Wes is an Arkansas native and received his bachelor’s degree in business administration from the University of Arkansas. He is on the board of directors for the U.S. Poultry and Egg Association and serves on the Jones Center Development Council in Springdale, Ark.

Wes MorrisPrepared Foods Operations


Steve StoufferFresh Meats

Steve Stouffer was selected to lead Tyson Foods’ Fresh Meats business in 2013 after more than 30 years of service with the company at its Dakota Dunes, S.D., headquarters. In his role, Steve oversees all aspects of the company’s manufacture and sales of fresh boxed and value-added beef and pork, as well as Tyson Foods’ live swine production group.

Combined, the Tyson Foods beef and pork segments process more than half a million head of livestock each week and represented 56 percent of total company sales for fiscal year 2014. Tyson Foods is the largest U.S. beef packer and second-largest producer of pork products.

Steve joined IBP, inc., which later became Tyson Fresh Meats, in 1982 as a beef carcass merchandiser. He has since held a number of management and officer positions in beef and pork sales, most recently serving as the senior vice president of beef margin management, where he led the company’s beef division.

Steve is a native of Kaneville, Ill., and graduated from Iowa State University with a bachelor’s degree in animal science.


Noel White was selected to lead Tyson Foods’ Poultry business in 2013, building upon a 30-year career in leadership roles with the company. Noel oversees 60 production facilities that yield roughly 30 percent of the company’s total sales.

Noel joined IBP, inc. in 1983, prior to its 2001 acquisition by Tyson Foods. He previously served in numerous sales, management, and company officer positions including senior vice president for fresh meat sales and marketing and senior vice president, pork product management. Most recently, he was the senior group vice president of fresh meats, a position he held from 2009 until 2013.

A native of Des Moines, Iowa, Noel is a graduate of Bemidji State University, in Bemidji, Minn. He received a master’s degree in business administration with an emphasis in economics from Oklahoma City University.

Noel WhitePoultry


Sara LilygrenCorporate Affairs

Sara Lilygren leads Tyson Foods’ government, community and public relations, as well as its social media efforts. She also oversees corporate social responsibility, which includes charitable giving, along with hunger and disaster relief. Sara and her team are responsible for internal and external communications at the company.

She served as senior vice president of external relations from 2009-2012. Prior to that, Sara led the company’s federal government relations efforts in Washington D.C., for seven years. Tyson Foods is active in many issues at the federal level, including renewable fuels policy, agriculture, food safety, nutrition, immigration reform, labor, the environment, and international trade.

Before joining Tyson Foods, Sara had an 18-year career at the American Meat Institute, serving in a variety of public relations and legislative affairs positions including senior vice president for legislative and public affairs from 1994-2002. Earlier, she did public relations work for the National Food Processors Association (now Grocery Manufacturers Association) and a PR agency in Washington D.C.

Sara is a director of the American Meat Institute, National Chicken Council, and Center for Food Integrity boards. She also serves on the boards of the Northwest Arkansas Regional Airport Authority and the Walton Arts Center. She earned a bachelor’s degree in foreign affairs from the University of Virginia in Charlottesville, VA.


Positioned for Success

Approximately 124,000 Team Members worldwide*

Second largest food production company in the Fortune 500

Worldwide locations*:46 Chicken plants13 Beef plants**9 Pork plants**41 Prepared Foods plants11 International plants6 Turkey facilities2 R&D Centers

Beef and pork plants are near cattle and hog supplies, which lowers transportation costs and improves availability of livestock for processing

Chicken plants are located in regions with a climate suitable for poultry production and access to feed grains

International operations in China and India (following the sale of Latin American operations)

US OPERATIONS LOCATION MAP

Corporate Offices

Headquarters

*At FY14 year end **Includes three case-ready beef and pork plants


Tyson Foods24%

JBS USA22%

Cargill19%

Other25%

National Beef10%

Hormel8%

Tyson Foods17%

Smithfield26%

Cargill9%

JBS Swift11%

Other29%

Top U.S. Beef PackersSource: Cattle Buyers Weekly,

% of Daily Slaughter Capacity (head), 2014

U.S. Pork ProductionNational Pork Board, 2013 Quick Facts

Based on Estimated DailyU.S. Slaughter Capacity

Tyson Foods21%

Pilgrim’s Pride 18%

Sanderson7%

Perdue Farms7%

Other47%

Market LeadershipTyson Foods produces approximately 1 out of every 5 pounds of chicken, beef and pork in the United States.

U.S. Chicken ProductionSource: Watt Poultry USA, March 2014

Based on ready-to-cook pounds


International4%

Other 6%

FY14 Sales - $37.6 Billion

Chicken30%

ConsumerProducts44%

Beef42%

Pork14%

FoodService

33%

PreparedFoods10%

International 17%

Sales by Segment

Sales by DistributionChannel


Sales by Segment

$28.2

$1,987

$32.0

$1,767

$33.1

$1,731

$34.4

$1,818

$37.6

$1,897

FY10

FY10

FY11

FY11

FY12

FY12

FY13

FY13

FY14

FY14

Tyson Financial Trends

Tyson Revenue(Bn)

Tyson EBITDA(MM)

EBITDA is a non-GAAP financial measure. Tyson’s EBITDA represents net income, net of interest, income tax and depreciation and amortization. This supplemental measure should not be considered as a substitute for net income or other measures reported in accordance with GAAP. For important information regarding the use of non-GAAP measures, including reconciliations to the most comparable GAAP measure, see Appendix.


Net Debt/EBITDA

Previous 5 Years = ~1!

FY 2014 Adjusted Pro Forma Basis = ~3!

FY 2015 = ~2!

See the Appendix


FY 2014

$37.6 Billion in RevenuesUp 9% over FY13

4.4% Total Company Adjusted Return on Sales

$1.6 Billion in adjusted Operating Income*Up 20% over FY13

21% Adjusted ROIC*12-month, pre-tax

$1.2 Billion in Operating Cash Flow

*$2.94 adjusted EPS*Up 30% over FY13

*Represents a non-GAAP financial measure. Adjusted operating income and adjusted EPS are explained and reconciled to a comparable

GAAP measure in the Appendix.


FY 2015 Outlook

Adjusted EPS of $3.30-3.40*more than 12% growth over FY14

Revenues of approximately $42 billion12% growth over FY14

Synergies of at least $225 million

Chicken Segment margins above 10%raised normalized ranged to 7-9%

Stronger Prepared Foods marginsraised normalized range to 10-12% when synergies arefully realized at FY17 year end

International Segment improvement of approximately $30 millioncut operational losses to ($50 million)

Hillshire accretive

Adjusted EPS is presented as a supplementary financial measurement in the evaluation of our business. We believe the presentation

of adjusted EPS helps investors assess our financial performance from period to period and enhance understanding of our financial

performance; however, adjusted EPS may not be comparable to those of other companies in our industry, which limits the usefulness as

comparative measures. Adjusted EPS is not a measure required by or calculated in accordance with GAAP and should not be considered

as a substitute for any measure of financial performance reported in accordance with GAAP. Investors should rely primarily on our GAAP

results, and use non-GAAP financial measures only supplementally in making investment decisions.


Priorities for Cash

Rapid de-leveraging from $1B+ cash flows and $500+ million from sale of Latin American operations

Capital allocation to drive long-term shareholder value

Acquisitions to fulfill our growth strategy

Returning cash to shareholders through share repurchases and dividends


2,000

1,750

1,500

1,250

1,000

750

500

250

020152014 2016 20222017 20232018 20242019 20332020 20342021 2044

Existing Hillshire Bonds New Term Loans New Notes RevolverExisting TSN Bonds

Maturity Profile Allows for Rapid DeleveragingPro Forma Maturity SkylineFiscal Year Maturities ($MM)

$1.25 billion Revolver

* $175MM/year amortization of new term loans

** Excludes $205MM Tangible Equity Unit amortizing note, $18MM Senior Note due 2028, and $24MM other miscellaneous debt such as foreign debt, capital leases.

Pre-

Paya

ble

Pre-

Paya

ble


Tyson is #2 in Frozen Food

$7.0

$3.6$3.2

$1.9 $1.9 $1.8 $1.6$1.3 $1.2

Leader in frozen poultry and breakfast foods.


Leading Share in Core CategoriesBrand Category TSN Share Position

Fresh Chicken

Frozen Cooked Prepared Chicken

Frozen Uncooked Chicken

Frozen Uncooked Cornish Chicken

Recipe Meats (Refrigerated Grilled & Ready Strips)

#1

#1

#1

#1

#2

Stack Pack Bacon

Bacon

#1

#3

Breakfast Sausage

Frozen Protein Breakfast

#1

#1

Smoked Sausage

Branded Lunchmeat

#1

#2

Hot Dogs #1

Corn Dogs #1

Super Premium Sausage #1

Frozen Branded Waffles #2

Source: IRI, Total U.S. Multi-Outlet, 52 wåeeks ending 11/2/14

27 | Tyson Foods Investor Day | December 10, 2014Source: IRI, Total U.S. Multi-Outlet, 52 wåeeks ending 11/2/14

Growth Team Unifies All Demand EnablersAccelerate growth and drive impact for the business owners through stronger capabilities and enhanced execution.

Innov

atio

n

Mar

ketin

g

R&D

InsightsSales

InsightsConsumer opportunities

InnovationIdeas with impact

R&DProducts with consumer preference

SalesPartnerships with impact

Marketing ServicesPersuasive messages at motivating times


Brand Building Growth Algorithm

4 Steps to Build Great Brands

1. Understand the consumer

2. Innovate to keep the brand contemporary

3. Communicate provocative brand benefits

4. Nuture the relationship for repeat purchase

Strong and sustainable brand vitality


Continuing Track Record of Innovation Success

FY2009-2012

9%

11%

13%

FY 2013

Legacy Hillshire Brands (FY2009-2014) Tyson Foods Retail

FY 2014 Goal

13-15%


Goal: Deliver Top Tier Performance

Revenue Greater in Categories in Which We Compete

10-12%Operating Margins

~5%MAP

13-15%Innovation


Brand Portfolio Participates Across Meal Occasions

Live to Eat Eat to Live

Breakfast

Lunch

Dinner

Snack/Mini Meals

Consumer Segments


Reframe from Product to Brand

From (Product) To (Brand)

Fresh Poultry TBD

Bacon TBD

Quality Breakfast Sausage Down Home Comfort Food

Lunchmeat & Dinner Sausages Farm House Quality

Hot Dogs Better Guy Food

Sausage Classic Favorites Reimagined


Hillshire Farm® Lunchmeat Share DataPercentage of Dollar Share

FY2012

9.4%

8.7%

9.4%

FY2013

Source: IRI Infoscan; Total U.S. MULO, Dollar Share ofTotal Lunchmeat; Tyson Foods Fiscal Years

FY2014 YTD (as of 11/9/14)

10.4%


Ball Park®3% Compound Annual Growth Rate (2 Yr)

FY2012 FY2013

Note: Hillshire Brands business performance per Tyson Foods fiscal year.

FY2014Revenue ($MM)


Jimmy Dean®7% Compound Annual Growth Rate (2 Yr)

FY2012 FY2013

Note: Hillshire Brands business performance per Tyson Foods fiscal year.

FY2014Revenue ($MM)


Improved Trade EfficiencyHillshire Brands Trade Rate as Percentage of Revenue

FY2012 FY2013 FY2014

Trade rate reduction of 250 bps

ApproachComprehensive event analysisStrategic pricing guidanceNon-working trade effectiveness


Disciplined Approach to MAP SpendingHillshire Brands MAP Efficiencies (Return per MAP Dollar)

FY2012 FY2013

+13%

+17%

ApproachPortfolio roleWell-designed execution planMeasuring results and optimizing


Over Long-term, Shift Investment from Pricing to Consumer

Above Net Sales

Trade

Slotting

Below Net Sales

Advertising

Consumer Promotions

Gross Margin


Tyson beef production plants and relative production capacity

High volume Low volume

Source: MeatingPlace with data from John Nallivka and Glynn Tonsor

Beef Cattle Herd Movement

Herd Population 1994

Herd Population 2014


Appendix


12 Months Ended

September 29, 2012 October 1, 2011 October 2, 2010Operating

Income EPSOperating

Income EPSOperating

Income EPS$ 1,286 $ 1.68 $ 1,289 $ 1.98 $ 1,574 $ 2.09

— — —— — — (38) (0.06)— — — (0.03) — —— — — (0.05) — —— — — — —

—— — — — 29 (0.07)— — — — — (0.03)

— 0.29 — — — —— — — — — (0.09)— — — — — —— — — — — —

— — — — — —

— — — — — —

$ 1,286 $ 1.97 $ 1,289 $ 1.90 $ 1,565 $ 2.22

Non-GAAP Reconciliations

In millions, except per share data 12 Months Ended

September 27, 2014 September 28,2013Operating

Income EPSOperating

Income EPSReported from Continuing Operations $ 1,430 $ 2.37 $ 1,375 $ 2.31Less:Gain from currency translation adjustment — — — (0.05)Gain from insurance proceeds — — — —Reversal of reserves for foreign uncertain tax positions — — — —Reversal of unrecognized tax benefit — (0.15) — —Add:Impairment of goodwill — — —Impairment of equity method investment — — — —

Less related to early extinguishment of debt — — — —Losses related to note repurchases — — — —Brazil impairment/ Mexico undistributed earnings tax 42 0.16 — —Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan

137 0.37 — —

Hillshire Brands post-closing results, purchase price accounting and ongoing costs related to a legacy Hillshire Brands plant fire

40 0.07 — —

Hillshire Brands acquisition financing incremental interest costs and share dilution

— 0.12 — —

Adjusted from Continuing Operations: $ 1,649 $ 2.94 $ 1,375 $ 2.26


12 Months Ended

September 29, 2007 September 30, 2006 October 1, 2005Operating

Income EPSOperating

Income EPSOperating

Income EPS$ 613 $ 0.75 $ (50) $ (0.58) $ 655 $ 1.04

— — — — — (0.06)(19) (0.03) — — — —

— — — — — (0.01)

— — — — (12) (0.02)— — — — (0.04)

— — — — — —

— — — — — —— — 63 0.11 14 0.02— — — 0.02 — —— — — — — —5 0.01 — — — —7 0.01 3 0.01 — —— — — — 33 0.06— — — — 8 0.01— — 9 0.02 — —

— — — 0.04 — —— — 7 0.01 — —

$ 606 $ 0.74 $ 32 $ (0.37) $ 698 $ 1.06

Non-GAAP ReconciliationsContinued

In millions, except per share data 12 Months Ended

October 3, 2009 September 27,2008Operating

Income EPSOperating

Income EPSReported from Continuing Operations $ (215) $ (1.47) $ 331 $ 0.24Less: —Gain on sale of an investment — — — (0.03)Gain on sales of assets — — — —Gain on sale of remaining interest in Specialty Brands, Inc.

— — — —

Income related to vitamin antitrust litigation — — — —Tax adjustments — — — —Add:Charges related to BSE — — — —

Charges related to flood damage — — 7 0.01Charges related to plant closings 15 0.02 13 0.02Cumulative effect of change in accounting principles — — — —Impairment of goodwill 560 1.50 — —Impairment of assets — — 23 0.04Impairment of intangible assets — — 10 0.02Live swine legal settlement — — — —Loss related to Hurricane Katrina — — — —Severance and restructuring charges — — 23 0.04

Tax adjustments — — — —Write off of obsolete inventory — — — —Adjusted from Continuing Operations $ 360 $ 0.05 $ 407 $ 0.34


Adjusted operating income and adjusted net income from continuing operations per share attributable to Tyson (adjusted EPS) are presented

as supplementary financial measurements in the evaluation of our business. We believe the presentations of adjusted operating income

and adjusted EPS help investors assess our financial performance from period to period and enhance understanding of our financial

performance; however, adjusted operating income and adjusted EPS may not be comparable to those of other companies in our industry,

which limits the usefulness as comparative measures. Adjusted operating income and adjusted EPS are not measures required by or

calculated in accordance with GAAP and should not be considered as substitutes for any measures of financial performance reported in

accordance with GAAP. Investors should rely primarily on our GAAP results, and use non-GAAP financial measures only supplementally in

making investment decisions.

Non-GAAP ReconciliationsContinued


In millions, except ratio data

2014 2013 2012 2011 2010

Net income $ 856 $ 778 $ 576 $ 733 $ 765Less: Interest income (7) (7) (12) (11) (14)Add: Interest expense 132 145 356 242 347Add: Income tax expense (a) 396 411 351 341 438Add: Depreciation 494 474 443 433 416Add: Amortization (b) 26 17 17 29 35EBITDA $ 1,897 $ 1,818 $ 1,731 $ 1,767 $ 1,987

(a) Includes income tax expense of discontinued operation.

(b) Excludes the amortization of debt discount expense of $10 million, $28 million, $39 million, $44 million and $46 million for fiscal 2014, 2013, 2012, 2011 and

2010, respectively, as it is included in Interest expense.

EBITDA represents net income, net of interest, income tax and depreciation and amortization. EBITDA is presented as a supplemental financial measurement in the

evaluation of our business. We believe the presentation of this financial measure helps investors to assess our operating performance from period to period and enhances

understanding of our financial performance and highlights operational trends. This measure is widely used by investors and rating agencies in the valuation, comparison,

rating and investment recommendations of companies; however, the measurement of EBITDA may not be comparable to those of other companies in our industry,

which limits its usefulness as a comparative measure. EBITDA is not a measure required by or calculated in accordance with GAAP and should not be considered as a

substitute for net income or any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity. EBITDA is

a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain of the items added to net income

to determine EBITDA involve outlays of cash. As a result, actual cash available to service our debt obligations will be different from EBITDA. Investors should rely primarily

on our GAAP results, and use non-GAAP financial measures only supplementally, in making investment decisions.

EBITDA Reconciliations

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