Maple Leaf Pork Randy Powell, President, Maple Leaf Pork

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1 Maple Leaf Pork Randy Powell, President, Maple Leaf Pork 1

2 Randy Powell President, Maple Leaf Pork President, Maple Leaf Pork since 2001 Background in senior management and marketing/sales positions Progressive marketing and sales positions, Campbell Soup President, S.C. Johnson Wax Company President and CEO, Second Cup Coffee Company 2

3 Maple Leaf Pork Canada s largest fresh pork processor and exporter Leading value-added and branded pork processor in Canada Processes approximately 7.5 million hogs annually Over 4,300 employees 8 manufacturing facilities (1) with total production of approximately 2.8 million kgs of pork per day (1) Includes one joint venture facility 3

4 Maple Leaf Pork Processing Facilities Average Weekly Processing 1. Lethbridge Japanese Specialty Plant 6,000 hogs/wk 2. Saskatoon Kill/Cut Plant 15,000-18,000 hogs/wk 3. Brandon Kill/Cut Plant 45,000 50,000 hogs/wk 4. Winnipeg Kill Plant 18,000 hogs/wk 5. Winnipeg Cut Plant 6. Burlington, Kill/Cut Plant 40,000-45,000 hogs/wk 7. Yamachiche (PQ), Japanese Specialty Plant (JV) Kill/Cut Plant ,500 hogs/wk 8. Charlottetown Kill/Cut 4,000 hogs/wk 4

5 Maple Leaf Pork Production Capabilities: Present Hog Processing Volumes (Millions) CAGR: 8.2% Acquired Mitchell s fresh pork operation Acquired Schneider's fresh pork assets 6.2 Brandon becomes operational E 5

6 Top North American Pork Processors Daily Slaughter Capacity Canadian Pork Processors 1. Maple Leaf Foods (Nat l) 31, Olymel/Brochu (1) (Que/Alb) 30, Quality Meat Packers (Ont) 6, Du Breton (Que) 3, Springhill Farms (Man.) 3, Abattoir St-Alexandre (Que) 3,100 North American Pork Processors 1. Smithfield Foods 110, Tyson/IBP 71, Swift & Co. 44, Excel (Cargill) 32, Maple Leaf Foods 31, Hormel 26, Premium Standard Farms 17,100 (1) Merger announced Oct. 13, 2004 awaiting Competition Bureau clearance Sources: MFI Internal Analysis, National Pork Board 6

7 Global Pork Consumption Incremental 22 Million Metrics Tonnes From 1996 To 2005 Annual Global Commercial Pork Consumption (000 s Metric Tonnes) 120, , % Growth Global Pork Consumption (000's metric tonnes) 80,000 60,000 40,000 20,000 - (1) (1) (1) USDA - October Forecast (Livestock & Poultry: World Markets & Trade) 7

8 Maple Leaf Pork Global Customer Base Retail Foodservice Industrial George Weston Foods, Australia 8

9 Maple Leaf Pork Optimizing the Sales Mix Japan China Mexico Australia 9

10 Maple Leaf Pork Value Creation High growth market: Global pork consumption CAGR of 3.1% (1996 to 2005) (1) Incremental growth alone in China is expected to exceed total US market within the next 10 years Supports Maple Leaf s raw material requirements in further processed meats Industry consolidation is placing increased pressure on companies who don t control their raw materials Significant opportunity to expand markets and margins through value-added processing (1) USDA 10

11 Maple Leaf Pork Value Creation Examples Commodity Value-Added Commodity Value-Added Foodservice Retail Case Ready 11

12 Maple Leaf Pork Value Creation Examples Commodity Value-Added Foodservice Value-Added Retail Retail Case Ready 12

13 Value Drivers Achieving Manufacturing Excellence Continuous workforce improvement Optimize plant efficiencies Food safety leadership Expanding Our Value-Added Sales Mix Continuing evolution to customer-driven model Product innovation Expansion into emerging markets 13

14 Manufacturing Excellence Workforce Built strong core workforce Focus on Health & Safety Plant Efficiency Leverage western assets / invest in operating efficiencies in the east Technology, automation and further processing capabilities Six Sigma to maximize manufacturing process efficiencies Food Safety DNA Traceability first products ship to Japan in Q4 Maple Leaf 40 Steps to Food Safety in all plants 14

15 Expanding Value-Added Sales Mix Transforming Our Customer Relationship Model Four Commodity Traders 37 - Person Value-Added Sales Team 12 - Person Sales Optimization Team 9 - Person Consumer/Trading/Marketing Team 15

16 Expanding Value-Added Sales Mix Innovation in Retail Sales Maple Leaf Medallion Naturally Maple Leaf Grillers Vegetable Grain Fed No Animal By-Products Complete line of pre-marinated products ready for the BBQ 16

17 Expanding Value-Added Sales Mix Innovation in Foodservice Maple Leaf Pork Drumsticks Maple Leaf Portion-Controlled Chops An innovative pork solution to the North American shortage/ rising costs of chicken wings The lead item in a roster of portioncontrolled items that also include ribs and roasts 17

18 Expanding Value-Added Sales Mix Global Diversification Leverage our Core Markets Expand in Emerging Markets US Retail/Food Service Canada China Japan Mexico US Industrial EU 18

19 Expanding Value-Added Sales Mix Global Brand Building Canada United States Japan 19

20 Summary Achieve Manufacturing Excellence Fully leverage existing assets Increase value-added capabilities Lead in food safety Expand value-added products and customer base Value-added processing and innovation Customer driven model Optimize sales mix 20

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