Jim Snee

Chairman, President, and CEO

 Legal
Disclosure
This presentation contains forward-looking information
based on management’s current views and
assumptions. Actual events may differ materially. Please
refer to the cautionary statement regarding Forward-
Looking Statements and Risk Factors on pages 34-40 in
the Company’s Form 10-Q for the quarterly period
ended April 29, 2018, available for viewing or download
on the investor page of the Company’s website –
Hormelfoods.com
 *
*Includes 2018 declared increase
 Hormel Foods:
A Global Branded Food Company
International 7%

U.S. Retail 54%

U.S. Deli 9%

Net
U.S. Foodservice 28%
27% Sales

*YTD Q3 Fiscal 2018 Data

 Strong, Branded Presence
Across the Food Space

*IRI 52 weeks ending 8-12-2018 - MULO

 Our Formula for Success
A Model for Growth
Building Innovation Acquisitions Balanced
Brands Portfolio

+ + +
 Hormel Natural Choice ® BUILDING BRANDS
®
BRAND

Delivering Accelerated Growth

Foodservice Core Portfolio New Categories Innovation

+8% +6% +33% +7%

*IRI Total US MULO 13 weeks ending 7-15-18; 3-yr dollar sales CAGR; Foodservice CAGR from internal sales data, 3-yr.
 Established Retail Brands
BUILDING BRANDS

Relevant and Growing

+5% +5% +3% +2%

+2% +1% +1% +1%

*IRI Total US MULO ending 7-15-18; 3-yr dollar sales CAGR

 Nurturing Our
BUILDING BRANDS

Established Brands

89% 46% 79%

SHARE SHARE SHARE
*IRI Total US MULO ending 7-15-18
 1 st
1 st Industry-Leading, Utilizing
Pre-Cooked
Canned Meat Innovation Firsts High Pressure
Pasteurization
for Lunchmeat

1 st
“Originate, st
Using Don’t Imitate.” 1
Pillow Pack ® Freezer-to-Oven
Packaging Turkey Products
Technology – George A. Hormel

st st 1 st
1 1 Fortified,
Perfectly Cooked Cancer-Specific
Shelf-Stable
Precooked Bacon Nutritional Offerings
Turkey Spread
Award-Winning, Insights-Driven INNOVATION

Innovation Fueling Growth

Back-to-Back
GMA Awards for
Innovation and Creativity

Progressive Grocer
Editors’ Picks
 Nut Butter Innovation
INNOVATION

Driving Growth

30%
INCREASE
IN POINTS OF
DISTRIBUTION

*IRI data from January 2013 – June 2018

 Foodservice Innovation INNOVATION

Delivering Meaningful Growth

Introduced 2013 Introduced 2014

+30% +60%
*Internal sales data, 2015-2017
2-yr CAGR 2-yr CAGR
 ACQUISITIONS

Acquisitions Integrated,
on Track and Growing
 The Catalyst for ACQUISITIONS

a Unified Deli Organization

NATURAL
INNOVATIVE TURKEY VALUE-ADDED & ORGANIC CRAFT
SOLUTIONS EXPERTS INNOVATOR LEADER MEATS
 Balance Across the Portfolio, BALANCED PORTFOLIO

Growth Across Generations

Millennials Gen X Boomers Matures

*Buyer Index, IRI MULO 52 weeks ending 8-12-2018

 We Have Grown Earnings
28 Out of 32 Years
2018 EPS
Guidance
$1.81 - $1.95
+15% - 24%
$2.00

$1.50

$1.00

$0.50

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

*Internal data
 Hormel Foods
Our Path Forward
%
Priorities from Investor Day - June 2017
EVOLVING to a broader food company
5 TOP LINE
GROWTH

%
EXPANDING and accelerating foodservice

BECOMING a more global food company

10 BOTTOM LINE
GROWTH

%
REDUCING volatility and increasing balance 15 INNOVATION
BY 2020

DIVESTING non-strategic assets MARGINS

IN TOP QUARTILE
MODERNIZING our supply chain OF PEERS
BY 2020
Evolving to a Broader
Food Company
Meat Protein Company Broader Food Company
Non-Meat Protein

+ Flavor Enhancers
Expanding and
Accelerating Foodservice
 Becoming a More
Global Food Company
Recreating the U.S. Model Globally China Capacity Geographic
Lbs Expansion
1. #1 or #2 brands
Approximately

2. Product mix – shelf-stable & +2x 160M

perishable
Approximately
3. Channel mix – foodservice & retail
80M
At Full
Production
4. No vertical integration 2016
Actual Capacity
 Reducing Volatility and
Increasing Balance
Protein Packaged Foods Reducing Volatility By:

1. Continuing to shift our mix

Retail Foodservice to value-added products

Domestic International 2. Minimizing commodity sales

3. Expanding our portfolio of

Beef, Nuts, Tomatoes
Pork and Turkey raw materials
and Avocados
Fremont Plant Sale
Right-Sizing Our Pork Supply Chain
Outside
Branded,
Purchases
Value-Added
Products

Austin
Hogs Plant
Harvest Pork Raw
Materials
Fremont
Contractually
Plant Commodity
Supplied Products
Harvest
 Modernizing Our
Supply Chain
SIMPLIFY
MORE THAN
MORE THAN MORE THAN MODERNIZE
30
PRODUCTION
BROAD
CO-PACKER 10,000 10,000 OPTIMIZE
FACILITIES
NETWORK SUPPLY
ITEMS
SKUs
RATIONALIZE
*Internal data
 Investing in Growth
in FY 2018
EPS
+15% to 24%
• Managing through industry
dynamics
$1.81
to • Executing on our strategic
$1.57 initiatives
$1.95
• Investing in growth

Fiscal 2017 2018 Guidance

 Our Fiscal 2019
Priorities Are Clear
Continue to Grow Execute on Deli Deliver Innovation to Capture Supply
Value-Added Brands Growth Strategy Growing Categories Chain Savings
Jim Sheehan
Senior Vice President,
Chief Financial Officer
 Delivering Long-Term
Shareholders Returns
$600

$500 Hormel
Foods
$400 $430
$300 S&P 500
$227
$200 S&P 500 Pkg
Food & Meats
$100 $196

$0

*$100 invested on 8/29/08 in stock or index – including reinvestment of dividends

 Impact of
Fremont Plant Sale

Supply Chain Financial

• Multi-year supply agreement • $30M in proceeds
• Represents 1/3 of harvest volume • $15-$20M expense in FY19
• Avoids major capital expenditure • Expected to close in December 2018
 Disciplined and Strategic
Capital Allocation

INVESTING
$5.3B
Cash from Operations
RETURNING
IN THE CASH TO
BUSINESS 2013 – 2018 Q3
SHAREHOLDERS
CAPEX ACQUISITIONS DIVIDENDS REPURCHASES
$1.1B
$985 $2,362
$3.6B $0.4B
$1.6B

*Internal data
 Disciplined Investments
Deliver High ROIC

ROIC 17%
%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

PEERS

*Factset data based on fiscal 2013-2017 data for Hormel Foods and time relative data for peers listed in Company 2017 proxy statement.
 Strong Financial
Cash from Operations
Position
$1.0B

$0.3B

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Internal data
Commitment to Returning
Cash to Our Shareholders
Dividends Per Share

*Internal data; includes 2018 declared increase

Hormel Foods
Our Path Forward
1. Evolving to a broader food company
2. Expanding and accelerating foodservice
3. Becoming a more global food company
4. Reducing volatility and increasing balance
5. Divesting non-strategic assets
6. Modernizing our supply chain