Dolph Baker Chairman & CEO
Max Bowman Vice President & CFO
Investor Presentation
November - 2019
2
FORWARD LOOKING STATEMENTSThis presentation includes forward-looking statements, which are allstatements other than historical facts, can be identified by use ofwords such as “expect,” “will,” and “anticipate,” and includestatements regarding expected operating results, acquisitiontransactions and potential effects of industry events or trends on ourbusiness. Important factors that can cause our results to differmaterially from those anticipated in the forward-looking statementsinclude egg prices and feed costs; changes in consumer demand orrequirements of major customers; unanticipated results ofacquisitions or joint ventures; ability to obtain eggs from outsideproducers; agricultural, regulatory and litigation risks; and otherfactors described in the cautionary language included in our filingswith the Securities and Exchange Commission, including in the “RiskFactors” section of our annual report on Form 10-K and subsequentfilings. We undertake no obligation to update any forward-lookingstatements.
3
CAL-MAINE FOODS PROFILE
We are the largest producer and marketer of shell eggs in the United States
• Founded in 1957 in Jackson, Mississippi
• Acquired Ralston-Purina egg operations
in 1972
• Completed 22 acquisitions since 1989
• Fully integrated egg producer
• Since 1996, publicly traded on NASDAQ
under symbol "CALM"
• FY 2019 U.S. fresh shell egg market
share - 19 percent
4
KEY INVESTMENT POINTS
• Largest egg producer and marketer in the United States
• Commitment to Sustainability
• Efficient, state-of-the-art operations
• Solid customer base of leading retail and food service companies
• Strong consumer demand for eggs
• Total fresh eggs up 2.0% calender YTD through October 20, 2019 according to consumer market research firm IRI
• Leading producer and marketer of high-margin specialty eggs
• Solid financial position
• Proven management team and systems
5
THE U.S. EGG INDUSTRY
Food Service Shell Eggs -19.6 Million Cases7.4%
Exports - 7.4 Million Cases2.8%
Retail Shell Eggs - 157.6Million Cases 59.5%
Further Processing - 80.1 Million Cases30.3%
Source: 2018 USDA AMS
Case = 30 dozen eggs
6
Period Ending
(in m
illio
ns) (in m
illions)
Net Sales Eggs Sold
2011 2012 2013 2014 2015 2016 2017 2018 2019$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
400
500
600
700
800
900
1,000
1,100
1,200
SALES HISTORY
7
CAL-MAINE LOCATIONS
Eggland's Best Franchise Territory
8
FULLY-INTEGRATED OPERATIONS
9
EGG PRODUCTION FACILITIES
Contractproduction9%
Company-owned91%
Lake City, Florida
Total FlockAs of August 31, 2019
Layers 36.5 millionPullets 9.6 million
10
COMPANY-OWNED FACILITIES
• State-of-the-art
• Fully automated
• Temperature controlled
• Labor efficient
• Located near customers
11
CAL-MAINE CUSTOMERS
Fiscal Year 2019
Retail 90%
Food Service 7%
Egg Products 3%
12
ToP 10 CUSTOMERS - FISCAL 2019Top 3 over 52%
1. Walmart and Sam's Club of Fiscal 2019 Sales2. H.E. Butt Co.3. Publix Super Markets4. Food Lion5. CCF Brands6. Eggs America (Sysco, US Foodservice, etc.)7. Wakenfern Food Corporation8. Aldi9. Costco10. C&S Wholesale GrocersTotal Top 10 Customers 69.8%
13
MONTHLY HEN INVENTORYM
illio
n H
ens F
irst D
ay o
f Mon
th
2014 2015 2016 2017 2018 2019
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec270
280
290
300
310
320
330
340
350
Source: USDA Chicken and Egg Report Revised October 22, 2019
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(Monthly average by fiscal year)
Urner Barry Southeastern Regional Large Egg Market Price
$0.72 $0.75
$0.93
$1.38
$1.21$1.12 $1.13
$1.22$1.35
$1.43$1.53
$1.79
$0.85
$1.49
$1.23
$0.91
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
FY
TD
$0.00
$0.50
$1.00
$1.50
$2.00
ANNUAL EGG PRICES
Source: Urner Barry2020 Price updated through November 7, 2019
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FEED INGREDIENT PRICESSo
y M
eal $
/ton C
orn $/bushel
Corn Soy Bean Meal
1/3/
2006
7/3/
2006
1/2/
2007
7/2/
2007
1/2/
2008
7/1/
2008
1/1/
2009
7/1/
2009
1/1/
2010
7/1/
2010
1/1/
2011
7/1/
2011
1/1/
2012
7/1/
2012
1/1/
2013
7/1/
2013
1/1/
2014
7/1/
2014
1/1/
2015
7/1/
2015
1/1/
2016
7/1/
2016
1/1/
2017
7/1/
2017
1/1/
2018
7/1/
2018
1/1/
2019
7/1/
2019
$0
$200
$400
$600
$800
$0
$2
$4
$6
$8
Source: Monthly Average of Daily Closing Prices per Chicago Board of Trade
16
FEED COSTS - CENTS PER DOZEN PRODUCED
4847
45
48
51
57
55
5354
49
46
4948
4344
4142
43
4140
43
3940
38 3839 39
4241
42 42 4241
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
30
35
40
45
50
55
60Feed ingredient Approximate change in
Approximate impact on feed costs per dozen
$ impact on production cost for the FY 2019
Corn $0.28 change per bushel $ 0.01 $ 8,767,050Soybean Meal $27 change in per ton $ 0.01 $ 8,767,050
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GROWTH STRATEGY
▪ Pursue selected acquisitions of existing shell egg production and processing facilities in key locations and markets
▪ Enhance production capacity and efficiency
▪ Increase value-added specialty egg business including cage-free capacity
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PURSUE ACQUISITION OPPORTUNITIES
▪ Leverage solid track record with completion of 21 acquisitions since 1989
▪ Extend ability to identify, execute and integrate additional operations
▪ Expand capabilities in existing markets and broaden geographic reach
▪ Enhance national presence and strengthen customer relationships
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ACQUISITION OPPORTUNITIESCal-Maine Foods 40,250 Sunrise Farms Inc. 4,100 Egg Innovations 1,500Rose Acre Farms 26,600 National Food Corp 4,080 Pine Hill Egg Ranch 1,500Versova Holdings 21,100 Mahard Egg Farms 4,000 Mercer Landmark 1,490Hillandale Farms 20,000 Ritewood/Oakdell Egg 3,640 J.S. West/JEM Eggs 1,360Daybreak Foods 14,000 RW Sauder 3,500 Dakota Layers 1,350Michael Foods 13,290 Konos Inc. 3,400 Simpson's Eggs 1,340Rembrandt 12,500 Forsman Farms 3,300 Demler Enterprises 1,330Center Fresh 10,500 Cooper Farms 3,200 Sperry Farms 1,300Midwest Poultry 9,800 Esbenshade Farms 2,800 Fassio Egg Farms 1,280Prairie Star Farms 9,400 Creighton Bros. 2,700 3 Puglisi Brothers 1,270Herbruck's Poultry 8,650 Minnich Poultry 2,520 Morning Fresh Farms 1,250Weaver Brothers 8,350 CHS(Hamilton Farm) 2,280 Hertzfeld Poultry Farms 1,220Hickman's Egg 8,200 Sunrise Acres Egg Farm 2,210 Wenger Feeds/Dutchland Farms 1,140Opal Foods 8,000 Giroux's Poultry Farm 2,200 Hillside Poultry Farms 1,040Fremont Farms 7,330 Pearl Valley Eggs 2,040 Feather Crest 1,000ISE America 6,100 Braswell Egg 1,870 Green Valley Poultry Farm 920Sparboe Farms 5,840 Heritage PMS/LaValle 1,870 Wilcox Farms 900Kreider Farms 5,580 Kreher's Eggs 1,840 Chino Valley Ranchers/MCM 820Gemperle Farms 5,000 Country Charm Eggs 1,670 Hidden Villa Ranch 730Mid-States Specialty Eggs 4,440 Schipper Eggs 1,650 The Happy Egg Co. 600Wabash Valley 4,400 Hemmelgarn & Sons 1,600 Sunrise Farms LLC 500S & R Egg Farms 4,350 Lathem Farms 1,600 Weber Family Farms 500
Berne Hi-Way Hatchery 1,500 Vital Farms 300Total 337,890
Layers in Production, December 31, 2018, in thousands
Source: Egg Industry Magazine - February 2019
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ACQUISITIONS
– Foodonics International, Inc. (dba Dixie Egg Company) - Acquired 2016
Includes capacity for 1.6 million laying hens and related feed production, milling and distribution facilities in Georgia and Florida as well as contract grower arrangements for an additional 1.5 million laying hens.
– Happy Hen Egg Farms, Inc. - Acquired 2017
Includes capacity for 350,000 laying hens and distribution facilities near Harwood and Wharton, Texas. Site designed for capacity of up to 1.2 million laying hens.
– Featherland Egg Farms, Inc. - Acquired 2018
Includes capacity for 600,000 laying hens, a feed mill and related production and distribution facilities near Marion, Texas.
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RED RIVER VALLEY EGG FARM, LLC
Cal-Maine Foods and Rose Acre Farms entered a production joint venture to build a cage-free shell egg production complex near
Bogata, Red River County, Texas
▪ Provides for capacity of approximately 1.8 million
laying hens, with permits for up to 2.9 million hens
▪ Production facilities fully online in 2017
▪ Enhances ability to meet growing demand for cage-
free and other specialty eggs
22
MAHARD EGG FARM, INC. - Press Release
▪ On October 16, 2019 Cal-Maine Foods announced that it has reached a definitive agreement to acquire substantially all of the assets of Mahard Egg Farm, Inc.
▪ Includes capacity for 3.9 million hens, feed mill, and related production facilities in Chillicothe, Texas, and Nebo, Oklahoma, and a distribution warehouse located in Gordonville, Texas.
▪ Sites are permitted for capacity of up to 8.0 million laying hens.
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INCREASE VALUE-ADDED SPECIALTY EGG BUSINESS
▪ Offer nutritionally enhanced eggs, cage-free and organic eggs
▪ Meet consumer demand in rapidly growing segment
▪ Benefit from higher and less cyclical selling prices
▪ Through Q1 FY 2020, represented 22.2 percent of dozens sold and 44.9 percent of sales revenue
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Dozen Eggs Sold (in millions)
805 821884
9481,014
1,063 1,054 1,031 1,038 1,039
116 132 144 156 174211
242 236 244 248
All Shell Eggs Specialty Eggs
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 20190
200
400
600
800
1,000
1,200
SPECIALTY EGG SALES
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CAGE-FREE COMMITMENT AND LEGISLATION
– Over 200 Companies have cage-free egg commitments over the next six years
State laws already passed or likely will be by next summer
– California - Michigan– Washington - Arizona– Colorado - Oregon– Hawaii - Maine
Layer FlockCage-free estimated weekly U.S Egg Production - (Nov. 5, 2019)
Certified Organic Cage-Free LayersEst. Layer Flock Size: 16,111,500Est. Lay Rate: 75.75%
Non-Organic Cage-Free LayersEst. Layer Flock Size: 54,208,000Est. Lay Rate: 75.75%
All Cage-Free LayersEst. Layer Flock Size: 70,319,500Est. Lay Rate: 75.75%
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INVESTMENT IN CAGE-FREE ▪ New capacity and conversions for cage-free hens, additional pullets and processing plants
and related equipment
▪ Preparing for California demand in 2020 and 2022 and nearest our customer base
▪ Over the last five years we have spent over $300 million to expand and upgrade our facilities
Project LocationProjected
CompletionProjected
CostSpent as of
August 31, 2019Remaining
Projected CostConvertible/Cage-Free Layer Houses Pittsburg, TX Jun-19 $11,069 $11,009 $60Convertible/Cage-Free Layer Houses Lake City, FL Sep-19 11,782 10,474 1,308Convertible/Cage-Free Layer Houses Harwood, TX Nov-19 12,505 11,672 833Convertible/Cage-Free Layer Houses Bushnell, FL Jan-20 11,543 10,358 1,185Convertible/Cage-Free Layer Houses Bushnell, FL Feb-20 6,151 603 5,548Cage-Free Pullet Houses Zephyrhills, FL Feb-20 6,332 6 6,326Convertible/Cage-Free Layer & Pullet Houses Pittsburg, TX Oct-20 25,550 5,965 19,585Convertible/Cage-Free Layer Houses Delta, UT Feb-21 17,941 3,765 14,176Cage-Free Layer & Pullet Houses/Processing Facilty Delta, UT Feb-22 84,664 1,865 82,799
$187,537 $55,717 $131,820
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KEY STRENGTHS
Low Cost Producerl Fully-integrated operations in 16 states
l Focused on automation throughout the supply chain
Favorable Consumer Demand Trends l
Eggs taste great and provide an affordable and convenient source of protein
Attractive Growth Profile
l Solid track record of internal growth and acquisitions
l Increasing sales of high-margin specialty eggs
Solid Customer Base lLeading names of retail and institutional food service customers
Strong Balance Sheet l Solid financial position supports future growth
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FINANCIAL HIGHLIGHTS - FISCAL YEAR 2019
2019 Sales - $1.4 billion
2019 EBITDA - $118 million down from $168 million in 2018
Working Capital - $493 million
Total Debt - $2.3 million
Debt to EBITDA - 0.02:1
29
INCOME STATEMENT - YEAR TO DATE
(Unaudited; in thousands except per share amounts) 13 Weeks EndedAugust 31,
2019September 1,
2018Net sales $ 241,166 $ 340,583Gross profit (21,125) 57,128Operating income (loss) (63,470) 12,677Other income (loss) 2,978 3,816Income (loss) before taxes (60,492) 16,493Net income (loss) $ (45,760) $ 12,405
Net income (loss) per common share:Basic $ (0.94) $ 0.26Diluted $ (0.94) $ 0.26
Weighted average shares outstanding:Basic 48,446 48,390Diluted 48,446 48,516
30
OPERATING HIGHLIGHTS - YEAR TO DATE
13 Weeks EndedAugust 31,
2019September 1,
2018
Dozen Eggs Sold (000) 254,424 250,059
Dozen Eggs Produced (000) 214,298 209,212
% Specialty Sales (dozen) 22.2% 23.8%
% Specialty Sales (dollars) 44.9% 34.2%
Net Average Selling Price (dozen) $ 0.915 $ 1.307
Net Average Selling Price Specialty Eggs (dozen) $ 1.863 $ 1.890
Feed Cost (dozen) $ 0.411 $ 0.413
31
BALANCE SHEET HIGHLIGHTS
August 31, 2019
June 1, 2019
Cash and short-term investments $ 236,086 $ 319,428
Total assets $ 1,096,872 $ 1,156,278
Long-term debt, less current maturities $ (204) $ (216)
Shareholders' equity $ 943,767 $ 989,806
Working capital $ 427,452 $ 492,846
• On July 10, 2018, we entered into a $100.0 million Senior Secured Revolving Credit Facility, which provides additional financial flexibility to support our growth strategy
32
Net
Sal
es
Operating Incom
e
Annual Net Sales and Operating Income ($ in millions)
Net Sales Operating Income
2012 2013 2014 2015 2016 2017 2018 20190
500
1,000
1,500
2,000
2,500
-600
-300
0
300
600
900
DozenEggs Sold
(in millions)884 948 1,014 1,063 1,054 1,031 1,038 1,039
FINANCIAL SUMMARY
33
CASH USE PRIORITIES
• Variable Dividend1/3 of Net Income Paid Quarterly
(after recovery of losses)
• Selective Acquisition of Existing Capacity
• Capital expansion to meet customer cage-free requirements
34
CASH DIVIDENDS PAID*C
ents
per
sha
re
*Cents per share, as adjusted for October 31, 2014, two-for-one stock split
8
1922
7 9
24
15
3
11
24
52
16 18
26
710
21
3
18
30
2219
25
3532
98
75
44
35
9
15
27
1Q092Q09
3Q094Q09
1Q102Q10
3Q104Q10
1Q112Q11
3Q114Q11
1Q122Q12
3Q124Q12
1Q132Q13
3Q134Q13
1Q142Q14
3Q144Q14
1Q152Q15
3Q154Q15
1Q162Q16
3Q164Q16
1Q172Q17
3Q174Q17
1Q182Q18
3Q184Q18
1Q192Q19
3Q194Q19
1Q20
0
20
40
60
80
100
120
35
STOCK OWNERSHIP AND FLOAT
Holdings as of August 31, 2019
OwnershipShares
Outstanding % of TotalShares Owned by Adams/Baker Family
(Excludes ESOP) 16,182,512 33.2 %
Shares Owned by Other Insiders(Excludes ESOP) 191,774 0.4 %
Shares Owned by ESOP 2,148,416 4.4 %
Public Float 30,170,638 62.0 %
Total Outstanding Shares 48,693,340 100.0 %
Cal-Maine Foods is a "controlled company" as defined in Rule 5615(c)(1) of NASDAQ's listing standards due to the Adams family's beneficial ownership of 65.5% of total voting power of all Common Stock and Class A Common Stock
36
Largest egg producer and marketer in the United States
Commitment to Sustainability
Efficient, state-of-the-art operations
Solid customer base of leading retail and food service companies
Strong consumer demand for eggs
Growing market for high-margin specialty eggs
Solid financial position
Proven management team
KEY INVESTMENT POINTS