EXHIBIT 99.1
CM CAL-MAINE FOODS STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE NOVEMBER 2022
FORWARD-LOOKING STATEMENTS AND USE OF NON-GAAP FINANCIAL MEASURES CM CAL-MAINE FOODS, INC. FORWARD‐LOOKING AND CAUTIONARY STATEMENTS THIS PRESENTATION CONTAINS “FORWARD‐LOOKING STATEMENTS” RELATING TO OUR SHELL EGG BUSINESS, INCLUDING ESTIMATED FUTURE PRODUCTION DATA, EXPECTED CONSTRUCTION SCHEDULES, PROJECTED CONSTRUCTION COSTS, POTENTIAL FUTURE SUPPLY OF AND DEMAND FOR OUR PRODUCTS, POTENTIAL FUTURE CORN AND SOYBEAN PRICE TRENDS, POTENTIAL FUTURE IMPACT ON OUR BUSINESS OF THE COVID-19 PANDEMIC, POTENTIAL FUTURE IMPACT ON OUR BUSINESS OF NEW LEGISLATION, RULES OR POLICIES, POTENTIAL OUTCOMES OF LEGAL PROCEEDINGS, AND OTHER PROJECTED OPERATING DATA, INCLUDING ANTICIPATED RESULTS OF OPERATIONS AND FINANCIAL CONDITION. SUCH FORWARD-LOOKING STATEMENTS ARE IDENTIFIED BY THE USE OF WORDS SUCH AS “BELIEVES,” “INTENDS,” “EXPECTS,” “HOPES,” “MAY,” “SHOULD,” “PLANS,” “PROJECTED,” “CONTEMPLATES,” “ANTICIPATES,” OR SIMILAR WORDS. ACTUAL OUTCOMES OR RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING STATEMENTS ARE BASED ON MANAGEMENT’S CURRENT INTENT, BELIEF, EXPECTATIONS, ESTIMATES, AND PROJECTIONS REGARDING THE COMPANY AND ITS INDUSTRY. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE RISKS, UNCERTAINTIES, ASSUMPTIONS, AND OTHER FACTORS THAT ARE
DIFFICULT TO PREDICT AND MAY BE BEYOND OUR CONTROL. THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, AMONG OTHERS, (I) THE RISK FACTORS SET FORTH IN PART I ITEM 1A OF THE 2022 ANNUAL REPORT (II) THE RISKS AND HAZARDS INHERENT IN THE SHELL EGG BUSINESS (INCLUDING DISEASE, PESTS, WEATHER CONDITIONS, AND POTENTIAL FOR PRODUCT RECALL), INCLUDING BUT NOT LIMITED TO THE CURRENT OUTBREAK OF HIGHLY PATHOGENIC AVIAN INFLUENZA (HPAI) AFFECTING POULTRY IN THE U.S., CANADA AND OTHER COUNTRIES THAT WAS FIRST DETECTED IN COMMERCIAL FLOCKS IN THE U.S. IN FEBRUARY 2022, (III) CHANGES IN THE DEMAND FOR AND MARKET PRICES OF SHELL EGGS AND FEED COSTS, (IV) OUR ABILITY TO PREDICT AND MEET DEMAND FOR CAGE-FREE AND OTHER SPECIALTY EGGS, (V) RISKS, CHANGES, OR OBLIGATIONS THAT COULD RESULT FROM OUR FUTURE ACQUISITION OF NEW FLOCKS OR BUSINESSES AND RISKS OR CHANGES THAT MAY CAUSE CONDITIONS TO COMPLETING A PENDING ACQUISITION NOT TO BE MET, (VI) RISKS RELATING TO THE EVOLVING COVID-19 PANDEMIC, INCLUDING WITHOUT LIMITATION INCREASED COSTS AND RISING INFLATION AND INTEREST RATES, WHICH GENERALLY HAVE BEEN EXACERBATED BY RUSSIA’S INVASION OF UKRAINE STARTING FEBRUARY 2022, (VII) OUR ABILITY TO RETAIN EXISTING CUSTOMERS, ACQUIRE NEW CUSTOMERS AND GROW OUR PRODUCT MIX AND (VIII) ADVERSE RESULTS IN
PENDING LITIGATION MATTERS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD -LOOKING STATEMENTS BECAUSE, WHILE WE BELIEVE THE ASSUMPTIONS ON WHICH THE FORWARD -LOOKING STATEMENTS ARE BASED ARE REASONABLE, THERE CAN BE NO ASSURANCE THAT THESE FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE. FURTHER, FORWARD -LOOKING STATEMENTS INCLUDED HEREIN ARE ONLY MADE AS OF THE RESPECTIVE DATES THEREOF, OR IF NO DATE IS STATED, AS OF THE DATE HEREOF. EXCEPT AS OTHERWISE REQUIRED BY LAW, WE DISCLAIM ANY INTENT OR OBLIGATION TO UPDATE PUBLICLY THESE FORWARD-LOOKING STATEMENTS, WHETHER BECAUSE OF NEW INFORMATION, FUTURE EVENTS, OR OTHERWISE. NOTICE REGARDING NON‐GAAP FINANCIAL MEASURES IN ADDITION TO U.S. GAAP FINANCIAL MEASURES, THIS PRESENTATION CONTAINS AND MAY REFER TO CERTAIN NON‐GAAP FINANCIAL MEASURES. THESE NON‐GAAP FINANCIAL MEASURES ARE IN ADDITION TO, NOT A SUBSTITUTE FOR OR SUPERIOR TO, MEASURES OF FINANCIAL PERFORMANCE PREPARED IN ACCORDANCE WITH GAAP. THESE NON‐GAAP FINANCIAL MEASURES SHOULD NOT BE CONSIDERED REPLACEMENTS FOR, AND SHOULD BE READ TOGETHER WITH, THE MOST COMPARABLE GAAP FINANCIAL MEASURES. RECONC ILIATIONS TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES AND STATEMENTS OF WHY MANAGEMENT BELIEVES THESE MEASURES ARE USEFUL TO INVESTORS ARE INCLUDED HEREIN IF THE RECONCILIATION IS
NOT PRESENTED ON THE PAGE IN WHICH THE MEASURE IS PUBLISHED. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 2
CM CAL-MAINE FOODS, INC. WE ARE THE #1 U.S. PRODUCER AND DISTRIBUTOR OF FRESH EGGS, COMMITTED TO OFFERING OUR CUSTOMERS CHOICE IN A SAFE, COST-EFFECTIVE AND SUSTAINABLE MANNER OUR MISSION TO BE THE MOST SUSTAINABLE PRODUCER AND RELIABLE SUPPLIER OF CONSISTENT, HIGH-QUALITY FRESH EGGS AND EGG PRODUCTS IN THE COUNTRY, DEMONSTRATING A “CULTURE OF SUSTAINABILITY” IN EVERYTHING WE DO OUR GOAL OUR EGGS ARE AN IMPORTANT SOURCE OF LOW‐COST PROTEIN, VITAMINS AND MINERALS FOR MILLIONS OF FAMILIES AND PROVIDING HEALTHY EGGS TO FAMILIES IN A RESPONSIBLE AND SUSTAINABLE MANNER HAS ALWAYS BEEN OUR GOAL CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 3
CORPORATE SNAPSHOT: FISCAL YEAR 2022 CM CAL-MAINE FOODS, INC. U.S. EGG MARKET SCALE #1 SHELL EGG PRODUCER AND DISTRIBUTOR(,) ~20% RETAIL EGG MARKET SHARE (2) ~14% SHARE OF U.S. TABLE EGG LAYER FLOCK,3) CATEGORY SALES (4) 3% 58% 39% ■ CONVENTIONAL ■SPECIALTY ■ EGG PRODUCTS AND OTHER FISCAL YEAR ENDED MAY 28, 2022 FINANCIAL HIGHLIGHTS (5) $1.8 BN $209 MN REVENUE EBITDA (6) 1.1 BN 64 MN LBS. DOZENS SOLD EGG PRODUCTS SOLD ~28K OX ACRES OWNED LEVERAGE (8) CHANNEL SALES ,9) 9% 3% 88% ■ RETAIL "FOOD SERVICE "EGG PRODUCTS CAL-MAINE FOODS’ OPERATING FOOTPRINT (10) ATTRACTIVE PRESENCE IN SOUTHERN U.S. EGG-LAND’S BEST™ SPECIALTY FRANCHISE IN NYC, LA AND OTHER METRO AREAS CAL-MAINE FOODS, INC. OPERATING LOCATIONS EGGLAND'S BEST™ EXCLUSIVE FRANCHISE TERRITORY (INC. INVESTMENT IN UNCONSOLIDATED ENTITIES) ADDITIONAL MARKET COVERAGE PRESENTATION CITATIONS ARE AVAILABLE IN THE APPENDIX CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 4
TENURED MANAGEMENT TEAM WITH DEEP INDUSTRY EXPERIENCE CM CAL-MAINE FOODS, INC. ADOLPHUS B. BAKER CHAIRMAN OF THE BOARD OF DIRECTORS 35+ YEARS AT CALM )35 YEARS OF INDUSTRY EXPERIENCE SERVED AT CAL‐MAINE FOODS SINCE 1986; MEMBER OF THE BOARD OF DIRECTORS SINCE 1991 SERVED AS CEO FROM 2010 TO 2022; ELECTED CHAIRMAN OF THE BOD IN 2012 PREVIOUSLY SERVED AS PRESIDENT AND COO AND VICE PRESIDENT AND DIRECTOR OF MARKETING PRIOR TO BECOMING PRESIDENT SHERMAN MILLER PRESIDENT, CHIEF EXECUTIVE OFFICER 25+ YEARS AT CALM JOINED CAL-MAINE FOODS IN 1996, MADE NAMED AS CEO OCTOBER 2022, PRESIDENT SINCE MARCH 2018 AND ELECTED TO THE BOD IN JULY 2012. PREVIOUSLY SERVED AS COO MEMBER OF THE BOARD OF THE U.S. POULTRY AND EGG ASSOCIATION AND BOARD OF UNITED EGG PRODUCERS PREVIOUSLY SERVED AS VICE PRESIDENT OF OPERATIONS AND GENERAL MANAGER IN CHASE, KANSAS, OFFICE AND VARIOUS MANAGEMENT POSITIONS SINCE JOINING THE COMPANY IN 1996 MAX BOWMAN VICE PRESIDENT, CHIEF FINANCIAL OFFICER 4+ YEARS AT CALM ELECTED AS A DIRECTOR OF THE COMPANY AND APPOINTED TO THE POSITION OF CFO IN 2018; PREVIOUSLY SERVED AS THE VICE PRESIDENT OF FINANCE PRIOR TO JOINING THE COMPANY, SERVED AS CFO OF SOUTHERN STATES UTILITY TRAILER SALES AND H&P LEASING FROM OCTOBER 2014 TO JUNE 2018 PREVIOUSLY WAS A CO‐FOUNDER, PRESIDENT AND DIRECTOR OF TENAX LLC AND TENAX AEROSPACE FROM 2003 TO 2014; CFO OF
CHEMFIRST, INC. FROM 1997 TO 2003 ROB HOLLADAY VICE PRESIDENT, GENERAL COUNSEL 10+ YEARS AT CALM JOINED THE COMPANY IN DECEMBER OF 2011 PREVIOUSLY ADVISED THE COMPANY AS AN OUTSIDE ATTORNEY WITH YOUNGWILLIAMS, P.A. EARNED A BACHELOR OF ACCOUNTANCY AND A MASTER OF TAXATION FROM THE UNIVERSITY OF MISSISSIPPI MEMBER OF THE MISSISSIPPI BAR ASSOCIATION, MISSISSIPPI CORPORATE COUNSEL ASSOCIATION, THE ASSOCIATION OF CORPORATE COUNSEL AND THE AMERICAN AGRICULTURAL LAW ASSOCIATION CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 5
COMPETITIVE ADVANTAGES DIFFERENTIATE CAL-MAINE FOODS IN THE PROTEIN MARKET CM CAL-MAINE FOODS, INC. PROVEN OPERATOR HIGHLY EFFICIENT OPERATIONAL EXPERTISE, CALM MANAGEMENT SYSTEM ENSURES PROACTIVE COST CONTROL AND ABILITY TO ADAPT TO MARKET PRESSURES THROUGHOUT BUSINESS CYCLE MANAGEMENT DRIVES GROWTH MANAGEMENT -DRIVEN CONTINUOUS IMPROVEMENT MINDSET. SIGNIFICANT GROWTH & ACQUISITION OPPORTUNITIES IN FRAGMENTED MARKET VERTICALLY INTEGRAT ED LARGEST U.S. PRODUCER & DISTRIBUTOR OF FRESH SHELL EGGS, WITH BROAD REACHING PRODUCTION, PROCESSING, PACKAGING & DISTRIBUTION CAPABILITIES QUALITY PRODUCT MIX WIDE RANGE OF QUALITY CHOICES IN SHELL EGG CATEGORY IN ADDITION TO ENHANCED EGG-PRODUCTS’ OFFERINGS. STRONG COMMITMENT TO SUSTAINABLY SERVING CUSTOMER NEEDS DISCIPLINED BALANCE SHEET NIMBLE, WELL-CAPITALIZED TO SUPPORT GROWTH INITIATIVES, STAKEHOLDER RETURNS, AND INVESTMENT TO MEET EVOLVING CONSUMER PREFERENCES BLUE CHIP CUSTOMERS LONG-STANDING RELATIONSHIPS WITH DIVERSE, HIGH-QUALITY RETAIL, WHOLESALE AND FOODSERVICE CUSTOMERS MINIMIZES REVENUE CONCENTRATION RISK CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 6
WHY CAL-MAINE FOODS? CM CAL-MAINE FOODS, INC. FOCUS ON FOOD CHOICE AFFORDABLE AND NUTRITIOUS PROTEIN PORTFOLIO SHIFT TO PREMIUM, INCLUDING CAGE-FREE, NUTRITIONALLY ENHANCED, ORGANIC AND HARD-COOKED OFFERINGS LEVERAGE SCALE TO DRIVE NETWORK EFFICIENCIES AND CUSTOMER REACH DEPLOY KEY CONSUMER INSIGHTS TO DRIVE FUTURE CATEGORY GROWTH VALUE DRIVERS FOCUS ON OPERATIONAL EFFICIENCIES TO IMPROVE FINANCIAL RESULTS AND MANAGE CYCLICALITY OF THE MARKET EXCELLENT CONTINUED PRODUCT AND CAPABILITY OFFERINGS TO RETAIL AND FOOD SERVICES DEEP EXPERIENCE INTEGRATING ACQUISITIONS AND EXECUTING ON ORGANIC OPPORTUNITIES STRONG OPERATIONAL RECORD DURING AVIAN INFLUENZA CRISIS GROWTH POSITIONED MAINTAIN CAPITAL ALLOCATION POLICY TO SUPPORT PRUDENTIAL EXPANSION STRATEGY SUPPORT CUSTOMERS THROUGH THE CAGE-FREE TRANSITION EVOLVE HUMAN CAPITAL FOCUS THAT ELEVATES COLLEAGUE HEALTH AND WELLBEING SUSTAINABILITY EFFORTS FOCUS ON KEY AREAS, INCLUDING FOOD QUALITY AND SAFETY, ANIMAL WELFARE AND GOVERNANCE CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 7
A HISTORY OF GROWTH THROUGH ADAPTATION AND SUCCESSFUL MARKET CONSOLIDATION (1) CM CAL-MAINE FOODS, INC. 1957 ■ 1963 FOUNDED IN JACKSON, MS EXPANDED TO BUILD WORLD'S BY FRED ADAMS LARGEST EGG FARM IN EDWARDS, MS 1969 ■ 1972 ADAMS FOODS MERGED WITH ACQUIRED EGG OPERATIONS DAIRY FRESH PRODUCTS AND OF RALSTON-PURINA MAINE EGG FARMS TO FORM CAL-MAINE FOODS 1996 ■ 2012 DECEMBER 1996, TAKEN ACQUIRED EGG ASSETS OF PUBLIC ON NASDAQ UNDER PILGRIM'S PRIDE AND MAXIM TICKER "CALM" PRODUCTION CO., ADDING -4.9 MILLION LAYERS 2014 2015 2016 2019 2022 SOLD )1 BILLION DOZEN EGGS FOR THE FIRST TIME ENTERED INTO RED RIVER VALLEY ACQUIRED FOODONICS LNT:L FOR JV WITH ROSE ACRE FARMS IN ~$72 MM. ADDING 3.1 MM TEXAS FOR THE PRODUCTION OF LAYER CAPACITY CAGE-FREE EGGS ACQUIRED SELECT ASSETS OF MAHARD EGG FARM FOR -S4Õ MM, INC. 3.9 MM LAYER HEN CAPACITY ACQUIRED REMAINING 50% INTEREST IN RED RIVER VALLEY, ADDING -1.7 MM CAGE-FREE LAYERS ANNOUNCED STRATEGIC INVESTMENT WITH MEADOWCREEK; INITIAL FOCUS IN HARD-COOKED AND EXTENDED SHELF-LIFE EGG PRODUCT LINES INDUSTRY FRAGMENTATION MAY PRESENT FURTHER GROWTH OPPORTUNFTIES DISCIPLINED M&A APPROACH WITH PROVEN EXECUTION AN INTEGRATION CAPABILITY TO CAPTURE SYNERGIES 23 COMPANIES INTEGRATED SINCE 1 989 M&A ACTIVITY IS REDUCING RELIANCE ON EXTERNAL SHELL EGG PURCHASES DOZENS OF SHELL EGGS PRODUCED VS. SOLD (MNS) 526 562 605 683
679 805 884 1014 1054 1038 1069 1084 388 431 458 537 535 640 663 750 819 873 928 1022 FY'02 FY'04 FY'06 FY'08 FY'10 FY'12 FY'14 FY'16 FY'18 FY'20 FY'22 SOLD PRODUCED HISTORIC M&A FOCUSED ON CONSOLIDATION OF OPERATIONS TO INCREASE DOZENS OF EGGS SOLD POST 2015 HPAI OUTBREAK, OVERSUPPLY OF EGGS DROVE COMPETITION FOR CUSTOMERS AND SALES, FORCING PRICING DOWN RECENT TRANSACTIONS HAVE SPECIFICALLY TARGETED PRODUCTION CAPACITY TO REDUCE THE GAP BETWEEN DOZENS PRODUCED AND DOZENS SOLD CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 8
LATEST QUARTER UPDATE: FISCAL Q1 2023 (1) CM CAL-MAINE FOODS, INC. QUARTER ENDED AUG. 27, 2022 FINANCIAL HIGHLIGHTS $658 MN REVENUE $183 MN EBITDA (2) 275 MN DOZENS SOLD $2,275 NET AVG. SALE PRIE (PER DOZEN) 16.5 MN LBS. EGG PRODUCTS SOLD 131 $0.85 /SH DIVIDEND CATEGORY SALES (4) 5% 65% 30% CHANNEL SALES (5) 11% 4% 85% ■ CONVENTIONAL "SPECIALTY "EGG PRODUCTS AND OTHER ■ RETAIL "FOOD SERVICE "EGG PRODUCTS CONSISTENT RISING REVENUE AND NET AVERAGE SALE PRICE (PER DOZEN) (6) $325 $382 $477 $593 $658 $1,235 $1,372 $1,605 $2,069 $2,275 255 276 288 272 275 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 REENUE DOZEN SOLD (MNS SHELL EGG NASP FEED INGREDIENT COST DRIVING HIGHER FARM PRODUCTION COSTS (PER DOZEN) (7) $0.898 $0.878 $0.912 $0.995 $1.046 $0.545 $0.529 $0.562 $0.641 $0.667 (3%) +6% +14% 4% $0.353 $0.349 $0.350 $0.354 $0.379 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 OTHER FARM PRODUCTION COSTS FEED COSTS QGNQ FEED COST CHANGE CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 9
VOLUME & SALES GROWTH CONTINUE TO OUTPACE INDUSTRY (1) CM CAL-MAINE FOODS, INC. SHELL EGG VOLUME AND SALES: CHANGE VS. PRIOR YEAR QUARTER (%) CONVENTIONAL EGGS CAL-MAINE FOOD’S CONVENTIONAL EGG VOLUME IS DECREASING AT A SIGNIFICANTLY LOWER RATE THAN INDUSTRY WHILE STILL OUTPACING SALES GROWTH I ^■INDUSTRY VOLS. INDUSTRY SALES MCALM VOLS. CALM SALES 17% 11% 37% 84% 134% -15% -3% -1% 33% 68% -19% -6% -17% -5% -21% -5% -15% -3% -15% -2% FY22Q1 FY22Q2 FY22Q3 FY22Q4 FY23Q1 SPECIALTY EGGS CAL-MAINE FOODS CONTINUES TO OUTPACE MARKET VOLUMES AND SALES GROWTH OF SPECIALTY EGGS, AS THE COMPANY SHIFTS PRODUCT MIX TO MEET CHANGES IN CUSTOMER DEMAND ^■INDUSTRY VOLS. INDUSTRY SALES ■■CALM VOLS. CALM SALES 7% 13% 26% 42% 52% 2% 10% 26% 35% 50% 1% 3% 14% 7% 28% 24% 26% 32% 28% 35% FY22Q1 FY22Q2 FY22Q3 FY22Q4 FY23Q1 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 10
EGGS HAVE ENJOYED SECULAR TAILWINDS IN THE U.S. CM CAL-MAINE FOODS, INC. STRENGTH IN RECENT DECADES (*) EGGS AND EGG PRODUCTS IN THE U.S. HAVE ENJOYED A CONTINUED DOMESTIC TAILWIND SINCE THE 1990’S CONSUMER PREFERENCES HAVE CONTINUED TO SHIFT TO CHICKEN, EGGS AND OTHER ANIMAL PROTEIN SOURCES 2020S: EGGS DEMONSTRATE CONTINUED SECULAR UPTAKE; ESTIMATED -280 AVERAGE PER CAPITA AVAILABILITY SELECT AVERAGE ANNUAL PER CAPITA PROTEIN AVAILABILITY (EGGS & LBS.) ^ ? -Q POST-WWIL EGG 1966 INTAKE PEAK SURGEON GENERAL ISSUES EGG CHOLESTEROL ALERTS TO FIGHT INFLATION 1980S 1989 AHA ADVISES AHA RELAXES EGG RESTRICTING EGG INTAKE INTAKE ADVICE FOR TO REDUCE CHOLESTEROL HEALTHY PERSONS 2015 USDA RECOMMENDS EGG: FOR HEALTHY EATING EGG AVAILABILITY PER CAPITA (NUMBER) 363 311 280 252 233 249 263 59.7 74 85.9 76 66.3 65.1 56.4 23.8 33.1 41.8 56.4 79.4 96 101.6 1950-1959 1960 -1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2019 EGGS CHICKEN BEEF POUNDS PER CAPITA CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 11
OUR SHELL EGG PORTFOLIO IS POSITIONED TO MEET NUTRITION NEEDS CM CAL-MAINE FOODS, INC. A UNIVERSAL PROTEIN ~98% OF U.S. HOUSEHOLDS PURCHASE SHELL EGGS AND EGG PRODUCTS (,) ~98% HOUSEHOLD PENETRATION SUPPORT HEALTH NEEDS (3-4-5) A ‘‘HEALTHY FOOD" IN NEW PROPOSED FDA DEFINITION ONE OF THE MOST AFFORDABLE HIGH-QUALITY PROTEINS © 1 EGG EQUALS 1 SERVING OF PROTEIN SOURCE OF KEY NUTRIENTS; CHOLINE & LUTEIN SUPPORT BRAIN HEALTH ONLY 70 CALORIES ONE OF THE ONLY FOODS THAT PER LARGE EGG NATURALLY HAS VITAMIN D CALL TO ACTION: FEED PEOPLE EGGS ARE “UNIQUELY POSITIONED” TO SUPPORT THE UN GOALS OF ZERO HUNGER AND GOOD HEALTH AND WELL-BEING (6) CAL-MAINE FOODS AIMS TO SERVE AS THE MOST SUSTAINABLE PRODUCER AND SUPPLIER OF HIGH-QUALITY, FRESH EGGS AND EGG PRODUCTS IN THE U.S., INVESTING IN A SOCIALLY BENEFICIAL PRODUCT PORTFOLIO “ACCESS TO NUTRITIOUS AND AFFORDABLE FOOD IS A FUNDAMENTAL HUMAN RIGHT.” - CAL-MAINE FOODS’ HUMAN RIGHTS STATEMENT CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 12
BUILDING ON OUR CORNERSTONE OF SUSTAINABILITY CM CAL-MAINE FOODS, INC. QUALITY FOOD CHOICES OUR EFFORTS CONTINUE TO DRIVE STRONG RESULTS #1 SCORE ZERO #1 ISS SCORE: PRODUCT PRODUCT RECALLS OR SAFETY, QUALITY & BRAND (1) MARKET BANS IN PRIOR THREE FISCAL YEARS (2) 100% SQF™-CERTIFIED WITH VERY STRONG FOOD SAFETY RECORD (3) ENVIRONMENTAL STEWARDSHIP WE CONTINUE TO EVALUATE OUR IMPACTS GHG LAND WATER INTENSITY USE USE RELATIVELY FAVORABLE ANIMAL PROTEIN EMISSION PROFILE (4) OUR OWNED FARMS COMMITTED TO ROBUST CAREFULLY MANAGE WATER MANAGEMENT NUTRIENT PLANS (5) IN VALUE CHAIN (6) ANIMAL WELFARE OUR CERTIFICATIONS EVIDENCE STRONG WELFARE COMMITMENT CERTIFICATIONS PROTOCOLS WATER, NUTRITION AND HANDLING PROTOCOLS ADVANCE OUR ABILITY TO DELIVER FOR STAKEHOLDERS BREEDS WHITE LEGHORN - A RELATIVELY HIGH-WELFARE BREED - PRODUCES THE MAJORITY OF OUR EGGS CORPORATE GOVERNANCE COMMITTED TO STRONG AND DIVERSE BOARD (8) 57% 29% INDEPENDENT FEMALE 14% MULTICULTURAL OUTSIDE DIRECTOR JOINED BOARD IN MARCH 2021 29% OF OUR BOARD MEMBERS IDENTIFY AS FEMALE 14% OF BOARD MEMBERS IDENTIFY AS A MEMBER OF ETHNIC OR CULTURAL MINORITY COMMUNITY CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 13
CAL-MAINE FOODS TODAY: THE LEADING GLOBAL EGG PRODUCER AND DISTRIBUTOR CM CAL-MAINE FOODS, INC. WORLD’S TOP-10 EGG PRODUCERS (LAYER MNS) (1) CAL-MAINE FOODS, 44.3 PROTEINA ANIMAL, 36.0 ROSE ACRE FARMS, 27.6 CP GROUP, 22.0 BEIJING DAT CO., 20.6 VERSOVA HOLDINGS, 20.1 HILLANDALE FARMS, 20.0 ISE INC., 20.0 DAYBREAK FOODS, 15.0 ACOLID, 14.1 SCALED PRODUCTION MEETS DEMAND G) 61% MORE LAYERS THAN OUR NEA REST U.S. COMPETITOR CALM MAINTAINS LEADING PRODUCTION SCALE SUPPORTED BY BEST-IN-CLASS OPERATING EXPERTISE UNIQUELY POSITIONED WITH BROAD PRODUCT OFFERINGS OF HIGH-QUALITY, AFFORDABLE AND HEALTHY PROTEIN CHOICES DIVERSE PRODUCTS OFFER CONSUMER CHOICE 60K UNIQUE RETAIL LOCATIONS -800 SKUS, LARGELY CONCENTRATED WITH PRIVATE LABEL CUSTOMERS, COMPLEMENTED BY CALM BRANDS 13% 1% 48% 24% 14% ~800 SKUS ■ PRIVATE LEGEND NON BRAND CALM EG GLAND’S BEST ■ NATIONAL BRAND CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 14
BLUE-CHIP CUSTOMER BASE MINIMIZES REVENUE CONCENTRATION RISK CM CAL-MAINE FOODS, INC. MANAGE TOP-10 RELATIONSHIPS (1) 1 WALMART INC. SAM’S CLUB 6 ALDI 2 H E B 7 COSTCO 3 PUBLIX 8 SPECIALTY EGG (2) 4 FOOD LION 9 KROGER 5 WAKEFERN 10 C&S WHOLESALE GROCERS BROAD EGG OFFERING CAPABILITIES HELP US CONTINUE TO SERVE A DIVERSE, HIGH-QUALITY CUSTOMER BASE AND MINIMIZE REVENUE CONCENTRATION RISK LARGEST CUSTOMER REPRESENTS 25% OF REVENUE TOP-3 CUSTOMERS REPRESENT 42% OF REVENUE MAINTAIN DIVERSE CUSTOMER BASE SERVE RETAIL, WHOLESALE AND FOODSERVICE CUSTOMERS HIGH-QUALITY, DIVERSE AND LONG-STANDING RELATIONSHIPS +60,000 RETAIL LOCATIONS STORE-DOOR AND DISTRIBUTION-CENTER DELIVERY PROXIMITY CAPTURES BACKHAUL EFFICIENCIES IN RISING FREIGHT-COST ENVIRONMENT CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 15
FULLY INTEGRATED OPERATIONS ALLOW FOR SCALED PRODUCTION AND DISTRIBUTION CAPACITY (1) CM CAL-MAINE FOODS, INC. FULLY INTEGRATED 25 FEED MILLS PRODUCTION FACILITIES ~7.2 MILLION EGGS PER HOUR PRODUCTION & PROCESSING CAPACITY BREEDING FACILITIES PACKAGING FACILITIES ROBUST PRODUCTION-TO -DISTRIBUTION CYCLE SUPPORT LAYING COMPUTER-CONTROLLED FEEDING, TEMPERATURE AND LIGHTING MONITORED HUMIDITY AND VENTILATION COLLECT EGGS EGGS MOVE ON BELTS FROM LAYING FACILITIES TO PROCESSING PLANTS FOR IMMEDIATE GRADING AND INSPECTION WASH, GRADE & PACK CLEAN EGGS GRADED IN QUALITY-CONTROL CENTERS THEN FINISHED REFRIGERATE AND DELIVER EGGS ARE PART OF COLD CHAIN THROUGH DELIVERY CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 16
SCALING PRODUCTION TO MANAGE COSTS AND REDUCE PURCHASE DEPENDENCY (1) CM CAL-MAINE FOODS, INC. SCALING PRODUCTION TO CONTROL COSTS SELF-PRODUCTION OFFERS RELATIVELY ATTRACTIVE EXPENSE PROFILE; SUPPORTS FLEXIBILITY DURING TIGHTENED EGG SUPPLY FY22 PRODUCED-TO-SOLD RATIO IMPROVED TO 93% FROM 84% IN FY19 SELF-PRODUCED COST BREAKDOWN (%) 22% 22% 22% 34% 30% 28% 44% 48% 50% FY 19 FY 22 FY 23 PROCESSING, PACKGAGING & WAREHOUSE OTHER FARM COSTS, INC. AMORTIZATION FEED SCALING PRODUCTION TO REDUCE DEPENDENCY DEPENDENCE ON OUTSIDE SHELL EGG PURCHASES HAS REDUCED, AS CAL-MAINE’S PRODUCTION HAS SCALED TO MEET DEMAND ENSURES WE MAINTAIN QUALITY SERVICE TO CUSTOMERS AND PROVIDES MANAGEMENT OF MARKET CYCLICALITY OUTSIDE EGG PURCHASES (%AGE OF SALES) 26% 23% 24% 21% 21% 20% 25% 26% 22% 16% 13% 6% FY FY FY FY FY FY FY FY FY FY FY FY 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTM ENT CONFERENCE | NOVEMBER 2022 17
LEVERAGING PRODUCTION TO MANAGE EXPENSE AND MAINTAIN ROBUST SUPPLY CHAIN (1) CM CAL -MAINE FOODS, INC. MANAGING COST OF SALES (COS) FARM PRODUCTION COSTS, LARGELY FEED INGREDIENTS, FACILITY AND AMORTIZATION, DRIVES COS EXPENSE CALM MANAGEMENT SYSTEM PROVIDES CONSTANT EVALUATION OF COSTS & PRICING TO BEST MANAGE VOLATILITY SINCE 2019, REDUCTION IN OUTSIDE EGG PURCHASED HAVE HELPED OFFSET SHELL EGG COST OF GOODS FOR DOZENS SOLD COST OF SALES COMPONENTS EX-EGG PRODUCTS ($ M M AND % CONTRIBUTION)* ■ FARM PRODUCTION PROCESSING, PACKAGING & WAREHOUSE EGG PURCHASE AND OTHER 57% 20% 23% 67% 21% 12% 64% 20% 16% $636 $223 $251 $928 $289 $172 $267 $81 $68 FY 19 FY 22 1Q 23 EMBEDDED SUPPLY CHAIN RESILIENCE DUAL- AND MULTI-SOURCING FOR KEY INPUTS, INCLUDING FEED INGREDIENTS, CARTONS AND OTHER PACKAGING SUPPLY CHAIN THESIS: WHILE INPUT PRICES REMAIN VOLATILE, WE ANTICIPATE WE WILL BE ABLE TO MEET OUR NEEDS OPERATING CONSISTENTLY THOUGH CHALLENGING ENVIRONMENTS INC. HURRICANES, COVD, HPAI FY22 TOP-20 VENDOR EXPENSE EXPOSURE (2) 3% 56% 15% 15% 7% 4% • FEED INGREDIENTS • EGG CARTONS AND PACKAGING EGG PINCHASES • FRANCHISE AND MARKETING FEES • LABOR • HOUSING AND EQUIPMENT *EXCLUDES EGG PRODUCTS EXPENSE LINE ITEM OF $29 MILLION, $51 MILLION & $24.5 MILLION, FOR FY 19, FY 22 & 1Q 23, RESPECTIVELY. EGG PURCHASES AND OTHER INCLUDES CHANGES IN INVENTORY. CAL-MAINE FOODS |
STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 18
SCALING HARD-COOKED EGG OFFERINGS, OPTIMISING THROUGHPUT AND CATEGORY REACH CM CAL-MAINE FOODS, INC. HARD-COOKED IS AN ATTRACTIVE CATEGORY PROTEIN-PACKED KETO-FRIENDLY AND GLUTEN-FREE CONVENIENT FOR MEAL PREPARATION AND SNACKING KID-FRIENDLY CATEGORY CAPTURES VALUE INTEGRATED PRODUCTION AND PROCESSING CAPABILITIES HELP LEVERAGE MORE VALUE FROM EGGS DURING PRE-PEAK LAY EGG SIZE INCREASES TO CONSUMER-PREFERRED LARGE+ ONLY AFTER ~15 WEEKS (16% OF LAYING LIFE) OF MEDIUM EGG LAYING ABILITY TO UPCYCLE PRE-PEAK, MEDIUM SIZE EGGS TO HARD-COOKED DRIVES COMMERCIAL THROUGHPUT AND CATEGORY PENETRATION LARGE+ SIZES PREFERRED FOR RETAIL MEDIUM SIZE EGGS IDEAL FOR HARD-COOKED OUR CAPABILITIES ARE SCALING* 3Q FY23 OPERATIONS EXPECTED ON-LINE ~26 MM LBS ANNUAL CAPACITY (1) PLAN TO SELF-SUPPLY MAJORITY OF EGGS, INITIAL FOCUS ON HARD-COOKED PRODUCTS LEVERAGE DISTRIBUTION RELATIONSHIPS AND DRIVE CATEGORY EXPANSION PURSUE GROWTH IN COMMERCIAL FOOD SERVICES *MEADOWCREEK IS A CONSOLIDATED ENTITY. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 19
CONSERVATIVE APPROACH TO CAPITAL ALLOCATION, EXECUTING ON STRATEGIC PRIORITIES (1) CM CAL-MAINE FOODS, INC. MANAGE CASH PRIORITIES SELECTIVE ACQUISITION POSTURE FOR CAGE-FREE CAPACITY VARIABLE DIVIDEND POLICY DRIVEN BY COMMODITY-BASED, CYCLICAL BUSINESS MODEL FY USE OF CASH ($ MM)* $169 $97 $13 $64 $45 $2 $6 $37 $124 $95 $45 $28 $72 FY 20 FY 21 FY 22 1Q 23 CAPEX ACQUISITIONS DIVIDENDS PAID PRIORITIZE LIQUIDITY MAINTAIN CURRENT ASSETS, INCLUDING CASH AND SECURITIES’ BALANCES, TO SUPPORT OPERATING NEEDS CONTINUED FOCUS ON FUNDING INVESTMENTS FOR LONGER-TERM GROWTH, PRIMARILY SPECIALTY AND BOLT-ON CAGE-FREE OPPORTUNITIES TOTAL CURRENT ASSETS, CASH AND INVESTMENT SECURITIES ($ MM) $520 $520 $662 $779 $232 $170 $175 $282 $288 $350 $487 $497 TOTAL CASH AND AFS TOTAL CURRENT ASSETS (EX. CASH & AFS) CAGE-FREE CAPEX PIPELINE COMMITTED $683 MM TO EXPAND CAGE-FREE PRODUCTION CAPABILITIES SINCE 2008 COMMITTED CAGE-FREE CAPEX ALLOCATION AS OF END FISCAL Q1, 2023 ($ MM) $151 $532 $683MM SPENT TO DATE ALLOCATED COSTS TO BE SPENT *FY 2022 USE OF CASH INCLUDES $6.1 MILLION ACCRUAL FOR PAYMENT OF 3QFY22 COMMON DIVIDEND. SELECT TOTALS MAY NOT FOOT TO FORMS 10-Q AND FORMS 10-K DUE TO ROUNDING CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 20
VARIABLE CASH DIVIDEND PROVIDES SUSTAINABLE RETURNS THROUGH CYCLE (1) CM CAL-MAINE FOODS, INC. 1/3 OF NET INCOME ALLOCATED EACH QUARTER UNDER OUR VARIABLE DIVIDEND POLICY $478MM OF DIVIDENDS PAID SINCE FY2000 SHAREHOLDER RETURNS COMMITTED TO ALLOCATION OF CAPITAL TO OUR SHAREHOLDERS THROUGH A VARIABLE QUARTERLY DIVIDEND PLAN MANAGING INDUSTRY CYCLICALITY VARIABLE POLICY PROVIDES INSULATION AGAINST CYCLICALITY OF INDUSTRY, TIES DIRECTLY TO COMPANY PERFORMANCE THROUGH NET INCOME VARIABLE DIVIDEND HISTORY VS. ANNUAL NET INCOME ($MNS) $350 $300 $250 $200 $150 TOTAL DIVIDEND $100 NET INCOME $50 $0 -$50 -$100 FY FY FY FY FY FY FY FY FY FY FY FY FY FYTD 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 21
MEETING EVOLVING RETAIL MARKET NEEDS BY DRIVING FAVORABLE PRODUCT MIX CM CAL-MAINE FOODS, INC. SERVE CHANGING CUSTOMER NEEDS IRI DATA INDICATES MOST SIGNIFICANT DEMAND GROWTH IS AMONG CAGE-FREE AND ORGANIC EGG PRODUCTS DESPITE SHIFT IN THIS MIX, CONVENTIONAL EGGS MAINTAIN CORE RETAIL MARKET POSITION, WITH 36 MILLION PEOPLE IN THE U.S. EATING 1 EGG PER DAY CONVENTIONAL EGGS MAINTAIN LEADING RETAIL MARKET SHARE (%) ® 11% 18% 24% 4% 7% 7% 8% 8% 9% 77% 68% 60% FY 19 FY 22 1Q 23 CAGE-FREE AND ORGANIC FREE-RANGE AND PASTURE -RAISED NUTRITIONALY ENHANCED` COMMODITY WHITE AND CAGED BROWN CONTINUED VOLUME MIX SHIFT MARKET SHIFT ACCELERATED IN 2019 WITH STATE CAGE-FREE MANDATES AND RETAILER COMMITMENTS DRIVING HIGHER SPECIALTY SHELL EGG SALES VOLUMES, LARGELY IN LINE WITH RETAIL MARKET11 ) FISCAL YEAR SHELL EGG VOLUMES* % OF DOZENS SOLD 75% 25% 73% 27% 65% 35% FY 19 FY 22 1Q 23 CONVENTIANL SPECIALITY REVENUE CONTRIBUTION CONTINUE TO DRIVE SHELL EGG PREMIUM PRODUCTS’ REVENUE CONTRIBUTIONS EXPANDED SPECIALTY CAPABILITIES, INCLUDING CAGE- FREE, DRIVES REVENUE CONTRIBUTION (2) FISCAL YEAR NET SITE! EGG SALES 06) & NET AVERAGE SELLING PNCE (HASP) $ PER DOZEN 39% 61% 38% 62% 32% 68% $1.041 $1.933 $1.265 $1.420 $1.932 $1.579 $2.368 $2.101 $2.275 FY 19 FY 22 1Q 23 CONVENTIONAL SALES SPECIALTY SALES ALL SHELL EGG NASP *FY19 INCLUDES THE IMPACT OF SPECIALTY CO-PACK EGG SALES VOLUMES
CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 22
HISTORIC MARKET TRENDS CM CAL-MAINE FOODS, INC. MARKET TRENDS HAVE BEEN IMPROVING OUR SHELL EGGS ARE SOLD AT PRICES RELATED TO INDEPENDENTLY QUOTED WHOLESALE MARKET PRICES OR FORMULAS RELATED TO OUR COSTS OF PRODUCTION OUR OPERATING RESULTS ARE MATERIALLY IMPACTED BY CHANGES IN THE DEMAND FOR, AND MARKET PRICES OF, SHELL EGGS AND FEED GRAINS (CORN AND SOYBEAN MEAL) HIGHER MARKET PRICES FOR EGGS HAVE A POSITIVE IMPACT ON OUR FINANCIAL RESULTS HIGHER MARKET PRICES FOR FEED GRAINS HAVE A NEGATIVE IMPACT ON OUR FINANCIAL RESULTS CBOT FEED INGREDIENT PRICES (1) OBSERVED PRICING FOR CORN ($/BUSHEL) AND SOYBEAN MEAL ($/TON) $303 $320 $382 $450 $456 $3.94 $3.64 $5.76 $6.96 $6.65 FY 19 FY 20 FY 21 FY 22 1Q 23 URNER BARRY SOUTHEAST LARGE INDEX OBSERVED FY AVERAGE DAILY PRICE PER DOZEN (2) $1.23 $1.22 $1.16 $1.71 $2.78 FY 19 FY 20 FY 21 FY 22 1Q 23 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 23
VOLATILE FEED INGREDIENT PRICING PROVIDES MARGIN OPPORTUNITIES CM CAL-MAINE FOODS, INC. MONITOR FEED INGREDIENT INPUTS (1) WASDE REPORTS CITE RUSSIA’S INVASION OF UKRAINE AS SIGNIFICANTLY INCREASING UNCERTAINTY OF AGRICULTURAL SUPPLY/DEMAND CONDITIONS USDA PROJECTIONS ESTIMATE THAT ‘22/23 U.S. CORN PLANTED ACREAGE DECLINES TO ~88.6 MM, OR ~5%, VS. PRIOR YEAR BASIS LEVELS FOR CORN RAN SIGNIFICANTLY HIGHER IN OUR AREA OF OPERATIONS COMPARED TO OUR PRIOR YEAR FIRST FISCAL QUARTER AVERAGE OBSERVED CBOT FEED INGREDIENT PRICE IN CALM FISCAL QUARTER (2) AS OF AUG. 27, 2022 $3.28 $3.92 $4.96 $6.10 $5.96 $5.43 $6.13 $7.71 $6.65 $288 $359 $423 $411 $364 $338 $412 $454 $456 FY'21 FY'21 FY'21 FY'21 FY'22 FY'22 FY'22 FY'22 FY'23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 AVERAGE COM PX / BUSHEL AVERAGE SOYBEAN MEAL PX / TON U.S. CORN SUPPLY TIGHTENS U.S. ‘22/23 SEPT. PROJECTED CORN STOCK-TO-USE RATIO PROJECTED AT 8.3%; BELOW 14.4% AVG. SEEN DURING ‘15/16 TO 19/20 (3) STOCKS FOR MAJOR CORN EXPORTING COUNTRIES, INC. THE U.S., EXPECTED TO BE LOWEST SINCE ‘12/13 (4) ‘22/23 USDA U.S. CORN ENDING STOCK BUSHEL MILLIONS AND TOTAL USE PROJECTIONS (5) 9.6% 9.6% 9.6% 8.3% $14,935 $14,570 $14,525 $14,175 APR-22 JUN-22 AUG-22 NOV-22 CORN TOTAL USE CORN ENDING STOCK PROJECTED STOCK-TO-TOTAL-USE RATIO CALM FEED APPROACH REMAIN FOCUSED ON MONITORING FEED INGREDIENTS’ PRICING EXPOSURE STAY CLOSE TO MARKETS WITH PURCHASES; ACCESS OPPORTUNISTICALLY CONTINUED
FOCUS ON PRODUCTION EFFICIENCIES UNDER OUR CONTROL FY22 FEED INGREDIENTS’ PRICE IMPACTS ON PER DOZEN SHELL EGG FARM PRODUCTION COSTS (6) IN FEED INGREDIENT $ PER DOZEN IMPACT BUSHEL OF CORN $0.28 $0.01 TON OF SOYBEAN MEAL $25.50 $0.01 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 24
HPAI SEASONED BIOSECURITY TEAM EFFECTIVELY MANAGING THOUGH U.S. 2022 OUTBREAK CM CAL-MAINE FOODS, INC. WHAT IS HIGHLY PATHOGENIC AVIAN INFLUENZA (HPAI?) (2) CAUSED BY AN “INFLUENZA TYPE A VIRUS”, IMPACTS CHICKENS, TURKEYS, AND OTHER DOMESTICATED AND WILD BIRDS HPAI HAS IMPACTED COMMERCIAL POULTRY AND EGG PRODUCTION IN EUROPE AND ASIA “HPAI IS MAINLY SPREAD THROUGH DIRECT CONTACT BETWEEN HEALTHY BIRDS AND BODILY WASTE FROM INFECTED BIRDS.” (3) PA DEPARTMENT OF AGRICULTURE MANAGING THROUGH AVIAN INFLUENZA LONG-TENURED AND SEASONED CALM OPERATIONS TEAM HELPED US MANAGE THROUGH THE 2014-15 AVIAN INFLUENZA OUTBREAK. THEY CONTINUE TO HELP US PROTECT OUR PEOPLE, OUR FOOD AND OUR FLOCK. “PUBLIC HEALTH RISK RELATED TO BIRD FLU REMAINS LOW” CDC “RISK OF HPAI INFECTIONS THROUGH PROPERLY PREPARED AND STORED EGGS IN THE RETAIL MARKET IS LOW” (1) FDA UPHOLD BIOSECURITY FOCUS KEY FOCUS AREAS FOR ROBUST BIOSECURITY INCLUDE: PROHIBIT NON-ESSENTIAL GUESTS REQUIRE VEHICLE SANITATION BEFORE ENTRY ENFORCE BIOSECURE PERIMETERS WITH REQUIRED CLOTHING, FOOTWEAR AND GEAR SANITATION SHARPENED CONTROL MEASURES, PREVENT SITE-SPECIFIC CONTACT BETWEEN FLOCK AND WILD BIRDS SERVE CUSTOMERS DURING IMPACTED EGG MARKET CONTINUE TO MEET CUSTOMER NEEDS IN ANY MARKET CONDITIONS ABILITY TO SELF-PRODUCE MINIMIZES RISK OF TRANSMISSION FROM OUTSIDE EGG PURCHASES
USDA LOWERED SHELL EGG PRODUCTION AND PER CAPITA DISAPPEARANCE ESTIMATES FOR CY22 SINCE FIRST CASE ANNOUNCED U.S. EGG PRODUCTION & DISAPPEARANCE PROJECTION CHANGES SINCE HPAI CONFIRMATION (4) FEB-22 SEPT-22 CUMULATIVE REVISION SHELL EGG PRODUCTION ESTIMATES (MN. DZNS) 9,430 9,560 1.4% PER CAPITA EGG DISAPPEARANCE 287.3 292.4 1.8% CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 25
HPAI 2022 VS. 2014-2015 SNAPSHOT (1) CM CAL-MAINE FOODS, INC. 2022 HPAI INFECTIONS: NOV. 6, 2022 (L) ~39 MN TOTAL BIRDS IMPACTED MIX OF COMMERCIAL EGG LAYERS, PULLETS, BREEDERS, TURKEYS, BROILER CHICKENS AND BACKYARD MULTI-SPECIES ~38 MN ~1 MN ~100K TABLE EGG LAYER HENS PULLETS OF 3.7MM BREEDER DEPOPULATED(2) DEPOPULATED FLOCK AFFECTED VECTOR SPREAD NOV. 6TH WAS DAY 271 OF HPAI C22 OUTBREAK 2014-15 OUTBREAK COMPRISED 186 DAYS 2022 VECTOR HAS SPREAD WITH INCREASED DIVERSITY ACROSS U.S. STATES, AND CONCENTRATED IMPACTS IN IOWA AND WISCONSIN HPAI CYCLE COMPARISONS: 2014 - 2015 VS. NOV. 6, 2022 IN 2014 - 2015: HPAI IMPACTED -35.6 MILLION TABLE EGG LAYER HENS IN 2022: HPAI HAS IMPACTED -TABLE EGG LAYER LOSSES THROUGH NOVEMBER 6, 2022 OF -37.8 MILLION TABLE EGG LAYER HENS 201 5 CUMULATIVE LAYER FLOCK IMPACTED (MNS.) 2022 CUMULATIVE LAYER FLOCK IMPACTED (MNS.) 1.1 18 28.6 28.8 30.7 30.7 30.7 35.6 36.7 37.8 17.4 34.6 35.6 FEB. MAR APR MAY JUN JUL AUG SEP OCT NOV 2015 COMULATIVE LAYER FLOCK IMPACTED (M NS.) 2022 COMULATIVE LAYER FLOCK IMPACTED (M NS.) CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 26
STATE MANDATES PROVIDE A PATH TO CAGE-FREE EGGS IN 2026 CM CAL-MAINE FOODS, INC. STATE MANDATES ACCELERATE SHIFT TO CAGE-FREE EGGS (1) 10 U.S. STATES HAVE PASSED CAGE-FREE LEGISLATION OR REGULATION FOR IMPLEMENTATION BY 2026 %AGE OF U.S. HOUSEHOLDS WITHIN CAGE-FREE MANDATED STATES WILL CONTINUE TO INCREASE AS FURTHER MANDATES ANNOUNCED ~67 BN CAGE-FREE EGGS/YR NEEDED TO MEET 100% OF NEEDS (3) ~135 MN SHORTAGE OF HENS FROM CURRENT NON-ORGANIC CAGE-FREE FLOCK (2) OUR CUSTOMER COMMITMENTS MANY OF OUR CUSTOMERS HAVE ANNOUNCED GOALS TO OFFER CAGE-FREE EGGS EXCLUSIVELY ON OR BEFORE 2026, SOME HAVE RECENTLY CHANGED THOSE GOALS TO 70% BY YE2030 CALIFORNIA ‘PROP 12’ SUPREME COURT CASE MAY MATERIALLY CHANGE NATION’S INTERSTATE COMMERCE LAWS WE ARE ENGAGING WITH CUSTOMERS TO ACHIEVE A SMOOTH TRANSITION IN MEETING THEIR ANNOUNCED GOALS AND NEEDS U.S. STATE CAGE-FREE MANDATE IMPLEMENTATION TIMELINE & CUM. POPULATION (MNS) (3) UTAH CALIFORNIA OREGON ARIZONA RHODE ISLAND MASSACHUSSETTS NEVADA COLORADO WASHINGTON MICHIGAN 46.7 49.9 55.8 55.8 68.0 68.0 88.8 88.8 89.9 1H'22 2H'22 1H'23 2H'23 1H'24 2H'24 1H'25 2H'25 1H'26 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 27
CAL-MAINE FOODS IDEALLY POSITIONED TO SUPPLY TRANSITIONING CAGE-FREE DEMAND CM CAL-MAINE FOODS, INC. CAGE-FREE DEMAND DRIVERS HUSBANDRY FOCUS APPETITE FOR DIVERSE HOUSING CONDITIONS CONSUMER SOCIAL RESPONSIBILITY FOCUS ON HUMAN AND ANIMAL HEALTH AND WELL-BEING LEGISLATIVE ACTIONS -27-32% HOUSEHOLDS EXPECTED TO RESIDE IN MANDATED CAGE-FREE STATES IN 2026 (1) CAGE-FREE DEMAND REQUIREMENTS ASSESS CURRENT STATE -34-35% FLOCK CURRENTLY HOUSED IN CAGE-FREE CONDITIONS (2) MEET RETAILER COMMITMENTS -135 MN ADDITIONAL HENS TO BE HOUSED CAGE-FREE BY 2026; AVERAGE CAPITAL COST ~$45/BIRD ,3) INVEST CAPITAL ~$6 BN REQUIRED INDUSTRY INVESTMENT TO COMPLETE ESTIMATED CAGE-FREE CAPACITY BUILD (4) CALM CAGE-FREE SUPPLY PLAN ALIGN SALES 22.1% FY22 TOTAL NET SHELL EGG SALES TIED TO CAGE-FREE EGG SALES; WILL CONTINUE TO PACE REVENUE WITH CAGE-FREE UPTAKE (5) MAINTAIN NIMBLE CAGE-FREE POSTURE WE CONTINUE TO DEPLOY CAPITAL TOWARD PRODUCTION THAT MEETS CURRENT AND FUTURE CUSTOMER NEEDS INCREASING CAGE-FREE FOCUS CAGE-FREE DOZENS SOLD INCREASED 58% IN Q1 OF FISCAL 2023 VS. FISCAL Q1 ’22 (6) IMPLIED ~FIVE-YEAR RUNWAY TO ADAPT TO CURRENT LEGISLATION CALM WILL DEPLOY CAPITAL COMMENSURATE WITH ANTICIPATED CUSTOMER DEMAND CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 28
SHELL EGG INDUSTRY IS FRAGMENTED; OPPORTUNITIES REMAIN CM CAL-MAINE FOODS, INC. SUCCESSFUL INTEGRATION HISTORY INFORMS OUR OUTLOOK 23 SUCCESSFUL INTEGRATIONS SINCE 1989 (1) ACQUISITION BENEFITS GEOGRAPHY CAGE-FREE CAPABILITY MILLING PROCESSING SYNERGY HIGHLIGHTS CUSTOMER PROXIMITY SPECIALTY FRANCHISE ACCESS INTEGRATED DISTRIBUTION SCALABLE THROUGHPUT TOP-FIVE PRODUCERS: LAYER HEN RANKINGS (2) TOP-FIVE PRODUCERS OWN ~37% OF U.S. LAYER HEN FLOCK CAL-MAINE FOODS 14% ROSE ACRE FARMS 8% HILLANDALE FARMS 6% VERSOVA HOLDINGS 6% DAYBREAK FOODS 4% OTHER 62% IN 2020, THE TOP-FIVE BROILER HEN PRODUCERS PROCESSED ~59% OF U.S. READY-TO-COOK PRODUCTS (3) ADDITIONAL MEANINGFUL OPPORTUNITIES AHEAD (4) MARCH 2022 $82.5 MM INVESTMENT FOR NEW CAGE-FREE CAPACITY AND CONVERSION OF EXISTING CAPACITY TO CAGE-FREE PRODUCTION DECEMBER 2021 ADDITIONAL INVESTMENT IN SOUTHWEST SPECIALTY VENTURE TO ENHANCE DISTRIBUTION AND WAREHOUSING CAPABILITIES IN CALIFORNIA, ARIZONA AND NEVADA MARKETS OCTOBER 2021 INVESTMENT IN MEADOWCREEK OPERATION TO PRODUCE HARD-COOKED AND OTHER HIGHER -VALUE EGG PRODUCTS 1Q23 $151 MM OF CAPITAL ALLOCATED BUT NOT YET DEPLOYED TO ENHANCE CAGE-FREE CAPABILITIES CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 29
KEY TAKEAWAYS CM CAL-MAINE FOODS, INC. 1.1 BILLION DOZENS SOLD FY22 60+ YEARS OPERATING QUALITY FOOD CHOICES LARGEST PRODUCER AND DISTRIBUTOR OF FRESH SHELL EGGS AND EGG PRODUCTS IN THE U.S. PROVEN, HIGHLY EFFICIENT OPERATOR S WITH DEEP TALENT BENCH AND INDUSTRY EXPERTISE NIMBLE AND POISED TO MEET EVOLVING CONSUMER FOOD CHOICE PREFERENCES SUSTAINABLE PLATFORM ADEPT ACQUIRER & INTEGRATOR PRUDENTIAL CAPITAL ALLOCATION COMMITMENT TO SUSTAINABLE OPERATING PLATFORM IS CORE TO OUR MISSION SIGNIFICANT GROWTH AND ACQUISITION OPPORTUNITIES IN A FRAGMENTED MARKET ROBUST FINANCIAL POSITION TO SUPPORT GROWTH INITIATIVES CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 30
CM CAL-MAINE FOODS, INC. QUESTIONS? IR@CMFOODS.COM
CM CAL-MAINE FOODS, INC. APPENDIX IMAGE COURTESY OF KANAN KHASMAMMADOV, UNSPLASH. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 32
CONTINUE TO EVOLVE OUR STRONG HUMAN CAPITAL AND COMMUNITY FOCUS CM CAL-MAINE FOODS, INC. JIA SCOTT, LEFT, SERVES AS VICE PRESIDENT, TREASURY, AND OVERSEES THE COMPANY’S TREASURY MANAGEMENT, ACCOUNTS PAYABLE AND CORPORATE TAX FUNCTIONS. JIA ALSO HELPS OVERSEE THE COMPANY’S PHILANTHROPIC AND CORPORATE SUSTAINABILITY INITIAT IVES. RHONDA WHITEMAN SERVES AS VICE PRESIDENT, OPERATIONS ACCOUNTING. RHONDA’S ROLE IS TO PLAN, DIRECT AND COORDINATE OPERAT IONAL ACTIVITIES TO DRIVE DEVELOPMENT AND IMPLEMENTATION OF EFFICIENT AND COST-EFFECTIVE SYSTEMS TO MEET CURRENT AND FUTURE ENTERPRISE NEEDS. ENHANCED HUMAN RIGHTS FOCUS CALM BOARD OF DIRECTORS APPROVED HUMAN RIGHTS STATEMENT IN 2021(1) WE STRIVE TO OFFER NOURISHING, HEALTHY PRODUCTS, FREELY CHOSEN, ATTRACTIVE EMPLOYMENT OPPORTUNITIES AND A SUPPORTIVE WORKPLACE CULTURE WE ALIGN OUR MISSION TO FEED PEOPLE WITH UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS CONTINUED COMMUNITY SUPPORT FIGHT HUNGER WITH CONTINUED FOOD DONATIONS AND MONETARY ASSISTANCE OUR GENERAL MANAGERS MAINTAIN COMMUNITY TIES NEEDED TO IDENTIFY ORGANIZATIONS AND INDIVIDUALS IN NEED OF HEALTHY FOOD DONATIONS SINCE FY 2018, WE HAVE DONATED ~5.4 MILLION DOZEN FRESH SHELL EGGS, OR ~65 MILLION SERVINGS OF PROTEIN WITH EACH DONATED EGG, WE PROVIDE 70 CALORIES AND ONE SERVING, OR SIX GRAMS, OF PROTEIN THIS COMPRISES ~10%
OF THE PROTEIN REQUIRED TO SUPPORT A 2,000-CALORIE DAILY NUTRITION NEED.(2) CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 33
INVEST TO ATTRACT AND RETAIN TOP TALENT CM CAL-MAINE FOODS, INC. BRIAN BALLARD SERVES AS CORPORATE RECRUITER AND IS RESPONSIBLE FOR FINDING EARLY-CAREER TALENT AT UNDERGRADUATE INSTITUTIONS. HE LEADS OUR ENTERPRISE EFFORT TO ENHANCE CANDIDATE POOL DIVERSITY AND ATTRACT TOP-PERFORMING INDIVIDUALS TO OUR MANAGEMENT TRAINING PROGRAM. RECRUIT TOP EARLY-CAREER TALENT AUGMENT MULTI-DECADE RELATIONSHIPS WITH UNDERGRADUATE INSTITUTIONS; EXPAND CURRENT REACH WITH HBCUS HIRE GRADUATES FROM ESSENTIAL DISCIPLINES, INCLUDING AGRICULTURAL SCIENCE, ECONOMICS, ENGINEERING AND FINANCE, AMONG OTHERS EMBED EXCELLENCE IN MANAGEMENT TRAINING, INCLUDING FOCUS ON COLLEAGUE HEALTH AND SAFETY, FOOD QUALITY AND SAFETY AND ANIMAL WELFARE FOCUS RECRUITING EFFORTS REGIONALLY TO CAPTURE DISPARATE TALENT POOLS; FOSTER CAREER MOBILITY POST-INITIAL PLACEMENT OFFER ATTRACTIVE WORK CULTURE STRIVE TO ATTRACT AND RETAIN TALENT WITH COMPETITIVE COMPENSATION AND BENEFITS THAT INCLUDE EMPLOYER-SPONSORED HEALTH INSURANCE, RETIREMENT PLAN, EDUCATIONAL AND OTHER COLLEAGUE ASSISTANCE WE CONTINUE TO LOOK FOR WAYS TO IMPROVE FEMALE REPRESENTATION IN OUR OPERATIONS, INCLUDING OUR SENIOR LEADERSHIP CALM WORKFORCE CHARACTERISTICS (FY) VS. ANIMAL PRODUCTION INDUSTRY NAICS 112 (CY)(1) GENDER COMPOSITION ETHNIC COMPOSITION 30% 30% 52% 20% 2021 2022 CALM FEMALE
REPRESENTATION CALM ETHNIC MINORITY REPRESENTATION INDUSTRY FEMALE REPRESENTATION INDUSTRY ETHNIC MINORITY REPRESENTATION CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 34
DRIVE COLLEAGUE ENGAGEMENT AND SAFETY OUTCOMES CM CAL-MAINE FOODS, INC. TRISHA PERKINS, LEFT, AND MELVIN BONDS SERVE AS CORPORATE SAFETY MANAGERS WHO DEVELOP AND DEPLOY ENTERPRISE SAFETY PROTOCOLS AND TRAINING. THEY ALSO MANAGE ENTERPRISE HEALTH AND SAFETY COMPLIANCE AND REGULATORY REPORTING. DRIVE STRONG SAFETY OUTCOMES STRONG AND STEADILY IMPROVING SAFETY OUTCOMES CONSISTENT POULTRY -INDUSTRY SAFETY OUTPERFORMANCE VENDORS AND CONTRACTORS MUST ADHERE TO OUR HEALTH AND SAFETY PROTOCOLS OSHA SAFETY OUTCOMES: POULTRY-RAISING INDUSTRY TOTAL RECORDABLE INJURY RATE (TRIR) % | NAICS 1123 (1) 5.2 4.5 4.9 3.5 N/A 2.9 2019 2022 2021 INDUSTRY CALM CONTINUOUS COLLEAGUE ENGAGEMENT 100% OPERATING LOCATIONS MAINTAIN SAFETY AND HEALTH COMMITTEES WITH INDIVIDUAL CONTRIBUTOR REPRESENTATION STRONG CULTURE OF OSHA-ALIGNED SAFETY TRAINING AND REPORTING ENTERPRISE RESPIRATORY PROTECTION PROGRAM (RPP) SUPPORTS OUR COLLEAGUES’ RESPIRATORY HEALTH AND WELL-BEING IN A BUSINESS-AS-USUAL OPERATING MODEL CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 35
SELECT INCOME STATEMENT HIGHLIGHTS CM CAL-MAINE FOODS, INC. FISCAL YEAR ENDED QUARTER ENDED $S, EXCEPT SHARE AMOUNT 2018 2019 2020 2021 2022 8/27/22 NET SALES $ 1,502,932 1,361,188 1,351,609 1,348,987 1,777,159 658,344 GROSS PROFIT $ 361,046 222,859 179,588 160,661 337,059 217,490 OPERATING INCOME (LOSS) $ 181,257 45,781 1,269 (26,264) 143,537 163,850 OTHER INCOME, NET $ 16,830 25,024 18,790 16,315 22,478 1,630 INCOME (LOSS) BEFORE INCOME TAXES $ 198,087 70,805 20,059 (9,949) 166,015 165,480 NET INCOME (LOSS) ATTRIBUTABLE TO CAL-MAINE FOODS, INC. $ 206,946 55,062 18,391 2,060 132,441 125,134 NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CAL-MAINE FOODS, INC.: BASIC $ 4.27 1.12 0.38 0.04 2.73 2.58 DILUTED $ 4.26 1.12 0.38 0.04 2.71 2.57 WEIGHTED AVERAGE SHARES OUTS TANDING: BASIC 48,353 48,467 48,467 48,522 48,622 48,623 DILUTED 48,468 48,589 48,544 48,656 48,940 48,811 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 36
SELECT OPERATING RESULTS CM CAL-MAINE FOODS, INC. FISCAL YEAR ENDED QUARTER ENDED $S, EXCEPT SALES VOLUME AND PERCENTAGE DATA 2018 2019 2020 2021 2022 8/27/22 DOZEN EGGS SOLD (000) CONVENTIONAL 780,362 778,051 813,255 785,446 747,914 179,712 SPECIALTY 257,352 260,848 255,895 287,765 335,875 95,605 TOTAL 1,037,714 1,038,899 1,069,150 1,073,211 1,083,789 275,317 DOZEN EGGS PRODUCED (000) 873,307 876,705 927,799 970,837 1,022,327 257,654 % PRODUCTION 84.2% 84.4% 86.8% 90.5% 94.3% 93.6% % SPECIALTY SALES (DOZEN) 23.5% 23.8% 23.9% 26.8% 31.0% 37.4% % SPECIALTY SALES (DOLLARS) 32.0% 36.2% 36.8% 41.1% 37.8% 31.8% NET AVERAGE SELLING PRICE (DOZENS) CONVENTIONAL $ 1.229 1.040 1.011 0.976 1.424 2.368 SPECIALTY $ 1.916 1.931 1.896 1.876 1.927 2.101 ALL SHELL EGGS $ 1.394 1.263 1.222 1.217 1.570 2.275 FARM PRODUCTION COST (PER DOZEN PRODUCED) FEED $ 0.394 0.415 0.410 0.446 0.569 0.667 OTHER $ 0.303 0.319 0.328 0.320 0.351 0.379 TOTAL $ 0.697 0.734 0.738 0.766 0.921 1.046 OUTSIDE EGG PURCHASES (AVERAGE COST PER DOZEN) $ 1.445 1.249 1.245 1.233 1.738 2.570 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 37
EBITDA RECONCILIATION CM CAL-MAINE FOODS, INC. NON-GAAP MEASURE – EBITDA EBITDA IS A NON-GAAP MEASURE AND DEFINED AS NET INCOME ATTRIBUTABLE TO CAL-MAINE FOODS, INC. PLUS INTEREST, TAXES, DEPRECIATION AND AMORTIZATION. THE FOLLOWING TABLE SETS FORTH A RECONCILIATION OF EBITDA TO NET INCOME ATTRIBUTABLE TO CAL-MAINE FOODS, INC.: EBITDA RECONCILIATION FISCAL YEAR ENDED QUARTER ENDED $000S 2018 2019 2020 2021 2022 8/27/22 NET INCOME (LOSS) ATTRIBUTABLE TO CAL-MAINE FOODS, INC. 125,932 54,229 18,391 2,060 132,650 125,287 ADD: INTEREST EXPENSE 265 644 498 213 403 148 ADD: INCOME TAX EXPENSE (BENEFIT) (8,859) 15,743 1,731 (12,009) 33,574 40,346 ADD: DEPRECIATION AND AMORTIZATION 54,026 54,650 58,103 59,477 68,395 17,312 EBITDA 171,364 125,266 78,723 49,741 235,022 183,093 ANTI-TRUST LEGAL SETTLEMENTS & RELATED FEES 83,140 2,495 117 53 185 841 ADJUSTED EBITDA 254,504 127,761 78,840 49,794 235,207 183,934 CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 38
CITATIONS (1/6) CM CAL-MAINE FOODS, INC. SLIDE 4 – CORPORATE SNAPSHOT: FISCAL YEAR 2022 RANKINGS FROM WATT POULTRY. “2022 POULTRY TOP U.S. EGG PRODUCERS RANKINGS.” DATA AS OF DECEMBER 31, 2021. WORLD AGRICULTURAL SUPPLY AND DEMAND ESTIMATES (WASDE). U.S. MARKET SHARE DATA IS AS OF-CALENDAR YEAR-END; CALM PERCENT OF SHELL EGG MARKET SHARE BASED ON FISCAL YEAR EGG DISAPPEARANCE DATA, WHICH EXCLUDES BREAKING EGGS AND EXPORTS. ALSO EXCLUDES CALM PORTION OF EGGS SOLD TO FOOD SERVICE CHANNEL. COMPANY FILINGS AND USDA EXPRESSED AS PERCENT OF FISCAL YEAR 2022 NET SALES. PERCENT OF SPECIALTY SALES ARE CLASSIFIED AS NUTRITIONALLY ENHANCED, CAGE-FREE, ORGANIC, BROWN EGGS, PASTURE-RAISED AND FREE-RANGE EGGS. EGG PRODUCT SALES AND OTHER SALES REPRESENT HARD-COOKED EGGS, HATCHING EGGS AND OTHER MISCELLANEOUS PRODUCTS THAT ARE INCLUDED WITH SHELL EGG OPERATIONS. SELECT TOTALS MAY NOT FOOT TO PUBLISHED COMPANY DISCLOSURES, INCLUDING FORMS 10-K, DUE TO ROUNDING. FINANCIAL HIGHLIGHTS REPRESENT FISCAL YEAR 2022 DATA AS OF MAY 28, 2022 UNLESS OTHERWISE NOTED. PLEASE REVIEW THE MOST RECENT FORM 10-K FOR MORE INFORMATION NON-GAAP EBITDA RECONCILIATION LOCATED IN APPENDIX SHELL EGG OPERATIONS HAVE RUN AT OR EXCEEDED SHELL EGG CAPACITY FOR THE FISCAL YEAR AS PUBLISHED IN THE MOST RECENT FORM 10-K BALANCE SHEET LEVERAGE AS OF END FISCAL YEAR 2022. PLEASE REVIEW
THE MOST RECENT FORM 10-K FOR MORE INFORMATION EXPRESSED AS PERCENT OF FISCAL YEAR 2022 SALES. SELECT TOTALS MAY NOT FOOT TO PUBLISHED COMPANY DISCLOSURES, INCLUDING FORMS 10-Q AND 10-K, DUE TO ROUNDING EGGLAND’S BEST FRANCHISE TERRITORY INCLUDES LAND O’LAKES MARKET AREAS AND INCLUDES INVESTMENT IN UNCONSOLIDATED ENTITY SLIDE 8 – BUILD ON OUR SUSTAINABLE CORNERSTONE COMPANY FILINGS SLIDE 9 – LATEST QUARTER UPDATE – FISCAL Q1 2023 FINANCIAL HIGHLIGHTS REPRESENT FISCAL Q1 2023 DATA AS OF AUGUST 27, 2022 UNLESS OTHERWISE NOTED. PLEASE REVIEW THE MOST RECENT FORM 10-Q FOR MORE INFORMATION NON-GAAP EBITDA RECONCILIATION LOCATED IN APPENDIX SHELL EGG OPERATIONS HAVE RUN AT OR EXCEEDED SHELL EGG CAPACITY FOR THE FISCAL YEAR AS PUBLISHED IN THE MOST RECENT FORM 10-Q EXPRESSED AS PERCENT OF FISCAL Q1 2023 SALES. SELECT TOTALS MAY NOT FOOT TO PUBLISHED COMPANY DISCLOSURES, INCLUDING FORMS 10-Q DUE TO ROUNDING EXPRESSED AS PERCENT OF FISCAL Q1 2023 NET SALES. PERCENT OF SPECIALTY SALES ARE CLASSIFIED AS NUTRITIONALLY ENHANCED, CAGE-FREE, ORGANIC, BROWN EGGS, PASTURE-RAISED AND FREE-RANGE EGGS. EGG PRODUCT SALES AND OTHER SALES REPRESENT HARD-COOKED EGGS, HATCHING EGGS AND OTHER MISCELLANEOUS PRODUCTS THAT ARE INCLUDED WITH SHELL EGG OPERATIONS. SELECT TOTALS MAY NOT FOOT TO PUBLISHED COMPANY DISCLOSURES, INCLUDING FORMS 10-Q, DUE TO ROUNDING.
COMPANY FILINGS COMPANY FILINGS CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 39
CITATIONS (2/6) CM CAL-MAINE FOODS, INC. SLIDE 10 – VOLUME & SALES GROWTH VS. INDUSTRY COMPANY FILINGS AND RESEARCH SLIDE 11 – EGGS HAVE ENJOYED SECULAR TAILWIND IN THE U.S. USDA ECONOMIC RESEARCH SERVICE. DATA MOST RECENTLY UPDATED ON JUNE 1, 2020. EGGS AVAILABLE PER CAPITA. CHICKEN WEIGHT PER CAPITAL ON A CARCASS BASIS. PORK AND BEEF EXPRESSED AS POUNDS OF PRODUCT AVAILABLE AT RETAIL POST-WWII HIGH CONSUMPTION AND AMERICAN HEART ASSOCIATION CITATION COURTESY OF NEW YORK TIMES, “THE EGG: ONCE SPURNED, NOW RECLAIMED” APRIL 3, 1996. HTTPS://WWW.NYTIMES.COM/1996/04/03/GARDEN/THE -EGG-ONCE-SPURNED-NOW-RECLAIMED.HTML SLIDE 12 – POSITION FOOD PORTFOLIO TO MEET NUTRITION NEEDS IRI DATA PROPOSED U.S. FOOD AND DRUG ADMINISTRATION (FDA) DEFINITION, 90-DAY COMMENT PERIOD BEFORE FINAL RULING AMERICAN EGG BOARD AMERICAN ACADEMY OF PEDIATRICS UNITED NATIONS. GOAL 2: ZERO HUNGER. HTTPS://WWW.UN.ORG/SUSTAINABLEDEVELOPM ENT/HUNGER/. RETRIEVED ON OCTOBER 21, 2021. SLIDE 13 – BUILD ON OUR SUSTAINABLE CORNERSTONE AS OF MAY 1, 2022. FOR DESCRIPTION OF ISS ESG RATINGS AND RANKINGS VISIT HTTPS://WWW.ISSGOVERNANCE.COM/ESG/RATINGS/. IN EACH OF FISCAL YEARS 2019, 2020 AND 2021 WE DID NOT PARTICIPATE IN ANY VOLUNTARY OR INVOLUNTARY MARKET RECALLS FOR OUR PRODUCTS. IN EACH OF THOSE FISCAL YEARS, WE DID NOT SEEK TO MARKET ANY NOTABLE QUANTITIES OF OUR PRODUCTS TO JURISDICTIONS WITH
MARKET BANS. AS OF JUNE 1, 2021, OUR ENTERPRISE TRANSITIONED TO CERTIFY AGAINST SQF EDITION 9 STANDARDS. SQF CERTIFICATION COMPRISES THE PROCESSING OF FRESH SHELL EGGS THAT LEAD TO FINISHED EGGS. FAO.ORG. EMISSIONS INTENSITIES. HTTP://WWW.FAO.ORG/FAOSTAT/EN/#DATA/EI ANIMAL FEEDING OPERATIONS THAT MEET THE REGULATORY DEFINITION OF A CAFO MAY BE REGULATED IN ACCORDANCE WITH THE EPA’S NPDES PERMITTING REQUIREMENTS. A KEY ELEMENT OF NPDES PERMITTING IS A COMPLIANT NUTRIENT MANAGEMENT PLAN (NMP). FOR MORE INFORMATION ABOUT OUR BLUE, GREEN AND GRAY WATER MANAGEMENT PRACTICES, PLEASE VISIT SCALING OUR SUSTAINABILITY, OUR FISCAL YEAR 2020 SUSTAINABILITY REPORT. HTTPS://WWW.CALMAINEFOODS.COM/MEDIA/1188/CALM -FY2020-SUSTAINABILITY-REPORT.PDF. THE UEP CERTIFIED PROGRAM ADDRESSES THE FIVE FREEDOMS OF ANIMAL WELFARE, WHICH SEEKS TO HELP DRIVE EXCELLENT CARE AND QUALITY OF LIFE FOR ANIMALS ENGAGED IN FRESH SHELL EGG PRODUCTION. HTTPS://UEPCERTIFIED.COM/ BOARD COMPOSITION AS OF 1Q FY 2023. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 40
CITATIONS (3/6) CM CAL-MAINE FOODS, INC. SLIDE 14 – LATEST QUARTER UPDATE – FISCAL Q1 2023 RANKINGS FROM WATT POULTRY. “2022 POULTRY TOP U.S. EGG PRODUCERS RANKINGS.” DATA AS OF DECEMBER 31, 2021. COMPANY FILINGS AND RESEARCH SLIDE 15 – EXCELLENT SERVICE FOR BLUE-CHIP CUSTOMER BASE DATA AS OF FISCAL YEAR 2022 UNLESS NOTED. FOR MORE INFORMATION ABOUT OUR REVENUE CONCENTRATION, PLEASE REVIEW OUR MOST RECENT FORM 10-K. INCLUDES INVESTMENT IN UNCONSOLIDATED ENTITY. EGGS PACKED IN
USDA GRADEMARKED CONSUMER PACKAGES LABELED AS CAGE-FREE MUST BE PRODUCED BY HENS HOUSED IN A BUILDING, ROOM, OR ENCLOSED AREA THAT ALLOWS FOR UNLIMITED ACCESS TO FOOD, WATER, AND PROVIDES THE FREEDOM TO ROAM WITHIN THE AREA DURING THE LAYING CYCLE. EGGS PACKED IN USDA-GRADEMARKED CONSUMER PACKAGES LABELED AS FREE-RANGE MUST BE PRODUCED BY HENS HOUSED IN A BUILDING, ROOM, OR AREA THAT ALLOWS FOR UNLIMITED ACCESS TO FOOD, WATER, AND CONTINUOUS ACCESS TO THE OUTDOORS DURING THEIR LAYING CYCLE. THE OUTDOOR AREA MAY BE FENCED AND/OR COVERED WITH NETTING-LIKE MATERIAL. USDA DOES NOT REGULATE PASTURE-RAISED CLAIMS; THESE HUSBANDRY ARE TYPICALLY CERTIFIED BY THIRD-PARTY PROVIDERS. SLIDE 16 - SCALED PRODUCTION AND DISTRIBUTION CAPACITY COMPANY FILINGS SLIDE 17 – LEVERAGE PRODUCTION TO MANAGE EXPENSE DATA AS OF FISCAL YEAR 2019, 2022 AND Q1 OF FISCAL 2023, UNLESS OTHERWISE STATED COMPANY RESEARCH SLIDE 18 – LEVERAGE PRODUCTION TO MANAGE EXPENSE DATA AS OF FISCAL YEAR 2019, 2022 AND Q1 OF FISCAL 2023, UNLESS OTHERWISE STATED COMPANY RESEARCH SLIDE 19 – SCALE HARD-COOKED EGG OFFERINGS AS OF FISCAL YEAR 2022. FACILITY WILL HAVE THE CAPACITY TO PRODUCE APPROXIMATELY 500 THOUSAND POUNDS OF WEEKLY HARD-COOKED EGG PRODUCTS. PLEASE REVIEW THE MOST RECENT FORM 10-K FOR MORE INFORMATION. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT
CONFERENCE | NOVEMBER 2022 41
CITATIONS (4/6) CM CAL-MAINE FOODS, INC. SLIDE 20 – EXECUTE AGAINST CAPITAL ALLOCATION PRIORITIES COMPANY FILINGS SLIDE 21 – EXECUTE AGAINST CAPITAL ALLOCATION PRIORITIES COMPANY FILINGS SLIDE 22 – DRIVE FAVORABLE MIX WHILE MEETING CUSTOMER NEEDS COMPANY FILINGS AND OTHER PUBLIC DISCLOSURES. SPECIALTY SALES ARE CLASSIFIED AS NUTRITIONALLY ENHANCED, CAGE-FREE, ORGANIC, BROWN, PASTURE-RAISED AND FREE-RANGE EGGS. REPRESENTS PERCENT OF NET SHELL EGG SALES AND EXCLUDES OTHER SALES, INCLUDING HARD-COOKED EGGS, HATCHING EGGS, OTHER EGG PRODUCTS, HENS AND MANURE, WHICH ARE INCLUDED WITH OUR SHELL EGG OPERATIONS. IRI UNIFY. U.S. MULTI-OUTLET DATA TIED TO CALM FISCAL YEAR THROUGH MAY 28, 2022 AND FISCAL 1Q 2023. SELECT TOTALS MAY NOT FOOT DUE TO ROUNDING. PERCENT OF MARKET SHARE DATA BASED ON SHELL EGG DOZENS SOLD. IRI MULTI-OUTLET RETAIL DATA BASED ON REPRESENTATIVE SAMPLING. SLIDE 23 – MARKET INDICATORS CBOT OBSERVED PRICING. 1QFY 2020 TO 1Q FY2023 CALM FY URNER BARRY SOUTHEAST LARGE EGG PRICING. FY2022 REFLECTS PRICING THROUGH APRIL 22, 2022 SLIDE 24 – NAVIGATE VOLATILE FEED INGREDIENT PRICING WORLD AGRICULTURAL SUPPLY AND DEMAND ESTIMATES (WASDE). NOV. 2022. HTTPS://WWW.USDA .GOV/OCE/COMMODITY/WASDE/WASDE1122.PDF CBOT OBSERVED PRICING. 1QFY 2020 TO 1Q FY2023 WASDE U.S. FEED GRAIN AND CORN SUPPLY AND USE. OCT. 12, 2022. . HTTPS://WWW.USDA.GOV/OCE/COMMODITY/WASDE
USDA FOREIGN AGRICULTURAL SERVICE. INTERNATIONAL AGRICULTURAL TRADE REPORT. “THE UKRAINE CONFLICT AND OTHER FACTORS CONTRIBUTING TO HIGH COMMODITY PRICES AND FOOD INSECURITY.” APRIL 6, 2022. HTTPS://WWW.FAS.USDA.GOV/DATA/UKRAINE -CONFLICT-AND-OTHER-FACTORS-CONTRIBUTING-HIGH-COMMODITY-PRICES-AND-FOOD-INSECURITY. RETRIEVED ON APRIL 18, 2022. WASDE U.S. FEED GRAIN AND CORN SUPPLY AND USE. OCT. 12, 2022. . HTTPS://WWW.USDA.GOV/OCE/COMMODITY/WASDE COMPANY DATA FOR FISCAL YEAR 2022. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 42
CITATIONS (5/6) CM CAL-MAINE FOODS, INC. SLIDE 25 – SEASONED HPAI RISK MANAGEMENT TEAM CDC.GOV. MARCH 7, 2022 UPDATE: H5N1 BIRD FLU POSES LOW RISK TO THE PUBLIC. HTTPS://WWW.CDC.GOV/FLU/AVIANFLU/SPOTLIGHTS/2021 -2022/H5N1-LOW-RISK-PUBLIC.HTM. FDA. QUESTIONS AND ANSWERS REGARDING THE SAFETY OF EGGS DURING HIGHLY PATHOGENIC AVIAN INFLUENZA OUTBREAKS. HTTPS://WWW.FDA.GOV/FOOD/EGGS-GUIDANCE -DOCUMENTS-REGULATORY-INFORMATION/QUESTIONS -AND-ANSWERS-REGARDING-SAFETY-EGGS-DURING-HIGHLY-PATHOGENIC -AVIAN-INFLUENZA-OUTBREAKS. RETRIEVED ON MAY 12, 2022. U.S. DEPARTMENT OF AGRICULTURE ANIMAL AND PLANT HEALTH INSPECTION SERVICE (APHIS). AVIAN INFLUENZA. FEBRUARY 16, 2022. HTTPS://WWW.APHIS.USDA.GOV/APHIS/OURFOCUS/ANIMALHEALTH/ANI MAL-DISEASE-INFORMATION/AVIAN/AVIAN -INFLUENZA U.S. DEPARTMENT OF AGRICULTURE ANIMAL AND PLANT HEALTH INSPECTION SERVICE (APHIS). 2022 DETECTIONS OF HIGHLY PATHOGENIC AVIAN INFLUENZA. RETRIEVED ON APRIL 22, 2022. HTTPS://WWW.APHIS.USDA.GOV/APHIS/OURFOCUS/AN IMALHEALTH/ANIMAL-DISEASE-INFORMATION/AVIAN/AVIAN -INFLUENZA/2022-HPAI. PERCENT OF THE U.S. TABLE EGG LAYER FLOCK IMPACTED BASED ON USDA’S FEBRUARY 2022 REPORTED TABLE EGG LAYER LEVELS. TABLE EGG LAYERS IMPACTED FROM APHIS REPORTING AS OF APRIL 24, 2022. USDA’S WASDE REPORT AS OF OCT. 12, 2022. RETRIEVED ON OCT. 12, 2022. HTTPS://WWW.USDA.GOV/OCE/COMMODITY/WASDE/WASDE1022.PDF SLIDE 26 –
U.S. HPAI SNAPSHOT: 2022 VS. 2014-2015 USDA REPORT AS OF SEPT. 2022. - HTTPS://WWW.APHIS.USDA.GOV/APHIS/OURFOCUS/ANIMALHEALTH/ANIMAL -DISEASE-INFORMATION/AVIAN/AVIAN -INFLUENZA/HPAI-2022 BASED ON FEB. 22 LAYER HEN LEVELS SLIDE 27 – CAGE-FREE STATE MANDATES’ EXPANSION: PATH TO 2026 LEAP MARKET ANALYTICS. EGG MARKET SUMMARY AND OUTLOOK. MAY 4, 2022 UDA EGG MARKETS OVERVIEW, OCTOBER 21, 2022 HTTPS://WORLDPOPULATIONREVIEW.COM/STATES SLIDE 28 – POSITIONED TO SUPPLY TRANSITIONING SHELL EGG DEMAND HEN HOUSING REQUIREMENTS BY STATE. UNITED EGG PRODUCERS. JUNE 8, 2021. ENHANCED SPACE IN-STATE PRODUCTION OR SALE REQUIREMENTS. SOURCE: UNITED EGG PRODUCERS AS OF JANUARY 2022. U.S. CENSUS DATA POPULATION ESTIMATES AS OF 2021. USDA EGG MARKETS OVERVIEW. CAGE-FREE TABLE EGG LAYER FLOCK ESTIMATES AS OF APRIL 29, 2022. PER UNITED EGG PRODUCERS ARTICLE PUBLISHED FEB. 2020 “MEETING CAGE-FREE COMMITMENTS IMPOSSIBLE FOR EGG PRODUCERS. ” HTTPS://WWW.FEEDSTUFFS.COM/NEWS/MEETING -CAGE-FREE-COMMITMENTS-IMPOSSIBLE-EGG-PRODUCERS. BASED ON CAPITAL REQUIRED FOR INDUSTRY TO TRANSITION CAGE-FREE LAYER FLOCK TO ~70% OF U.S. DOMESTIC LAYER FLOCK FOR 2026 EXPECTED DOMESTIC NEEDS FOR CAGE-FREE EGGS. USDA EGG MARKETS OVERVIEW APRIL 29, 2022. “CAGE-FREE COMMITMENTS AS OF APRIL 2022 REMAIN ABOUT UNCHANGED, REQUIRING 66.7 BILLION CAGE-FREE EGGS PER YEAR TO MEET 100% OF NEEDS FROM AN
APPROXIMATELY CAGE-FREE FLOCK OF 221 MILLION HENS…INDICATING A SHORTAGE OF 130 MILLION HENS FROM THE CURRENT NON-ORGANIC CAGE-FREE FLOCK OF 90.5 MILLION HENS.” AS OF FISCAL YEAR 2022. PLEASE REVIEW THE MOST RECENT FORM 10-K FOR MORE INFORMATION. AS OF Q1 OF FISCAL YEAR 2023. PLEASE REVIEW THE MOST RECENT FORM 10-Q FOR MORE INFORMATION. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 43
CITATIONS (6/6) CM CAL-MAINE FOODS, INC. SLIDE 29 – SHELL EGG INDUSTRY IS FRAGMENTED; OPPORTUNITIES REMAIN COMPANY PRESS RELEASES AND FILINGS 2022 WATT POULTRY TOP U.S. EGG PRODUCERS’ RANKINGS. HTTPS://WWW.EGGINDUSTRY-DIGITAL.COM/EGGINDUSTRY/JANUARY_2022/M OBILEPAGEDREPLICA.ACTION?PM=2&FOLIO=AD1#PG1 WATT POULTRY USA. “TOP BROILER COMPANIES CONTEND WITH COVID-19 IN 2020”. HTTPS://WWW.WATTPOULTRYUSA -DIGITAL.COM/WATTPOULTRYUSA/MARCH_2021/MOBILEPAGEDARTICLE.ACTION?ARTICLEID=1668232#ARTICLEID1668232 COMPANY PRESS RELEASES AND FILINGS SLIDE 33 – CONTINUE TO EVOLVE OUR STRONG HUMAN CAPITAL AND COMMUNITY FOCUS CAL-MAINE FOODS’ HUMAN RIGHTS STATEMENT. HTTPS://WWW.CALMAINEFOODS.COM/MEDIA/1189/CAL -MAINE-FOODS-HUMAN-RIGHTS-STATEMENT-FINAL.PDF. CAL-MAINE FOODS’ COMPANY DATA SLIDE 34 – INVEST TO ATTRACT AND RETAIN TOP TALENT CALM DATA AS OF FISCAL YEAR-END 2021. INDUSTRY DATA FOR ANIMAL PRODUCTION INDUSTRY (NAICS 112) AS OF CALENDAR YEAR 2021 SLIDE 35 – INVEST TO ATTRACT AND RETAIN TOP TALENT OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA) TOTAL RECORDABLE INCIDENT RATE (TRIR) FOR CAL-MAINE FOODS AS OF 2021 FISCAL YEAR END. POULTRY-RAISING NAICS SECTOR 1123 TRIR DATA AS OF CY 2020, THE MOST RECENT YEAR IN WHICH THE BUREAU OF LABOR STATISTICS (BLS) RELEASED DATA. CAL-MAINE FOODS | STEPHENS 2022 ANNUAL INVESTMENT CONFERENCE | NOVEMBER 2022 44