8-K
Cal-Maine Foods Inc (CALM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
Date of Report (Date of Earliest Event Reported):
April 29, 2022
Cal-Maine Foods, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-38695
64-0500378
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1052 Highland Colony Pkwy
,
Suite 200
,
Ridgeland
,
MS
39157
(Address of principal executive offices (zip code))
601
-
948-6813
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction
A.2 below):
☐
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value per share
CALM
The
NASDAQ
Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities
Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2
of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
☐
Item 7.01. – Regulation FD Disclosure.
On April
29, 2022,
Cal-Maine Foods,
Inc. (the
“Company”) will
be participating
in the
25th Annual
Burkenroad Investment
Conference hosted
by Tulane
University’s
Freeman School
of Business
on Friday,
April 29,
2022, at
The Westin
Hotel Canal
Place, New Orleans, Louisiana.
The
presentation
by
Dolph
Baker,
chairman
and
chief
executive
officer,
and
Max
Bowman,
vice
president
and
chief
financial officer, will begin at approximately 10:00 a.m. Central Time on Friday, April 29, 2022. A supporting
slide presentation
will be available on the investor relations section of the Company’s website
at http://www.calmainefoods.com/investors/events-
and-presentations.
The
event
is
free
and
open
to
the
public.
To
see
the
conference
agenda
and
register,
please
go
to
www.burkenroad.org.
In accordance with General Instruction B.2 of
Form 8-K, the information in this
Item 7.01 of this Current Report on
Form 8-K,
including Exhibit 99.1 hereto, which are furnished herewith pursuant to
and relate to this Item 7.01, shall not be
deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to
the liabilities
of Section
18 of
the Exchange
Act. The
information in
this Item
7.01 of
this Current
Report on
Form 8-K
and
Exhibit 99.1 hereto shall not be incorporated by reference into any filing or other document filed by the Company with
the SEC
pursuant to the
Securities Act of
1933, as amended,
the rules and
regulations of the
SEC thereunder,
the Exchange Act,
or the
rules and regulations of the SEC thereunder except as shall be
expressly set forth by specific reference to this Form 8-K in
such
filing or document.
Item 9.01 – Financial Statements and Exhibits
(d)
Exhibits
Exhibit
Number
Description
104
Cover Page Interactive Data File, (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements for the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
CAL-MAINE FOODS, INC.
Date:
April 29, 2022
By:
/s/ Max P. Bowman
Max P. Bowman
Director, Vice President, and Chief Financial Officer
exhibit991
CalMaine Foods Burkenroad Reports Investment Conference April 29, 2022 Max Bowman, Chief Financial Officer
Forwardlooking statements and use of nonGAAP financial measures Forward‐Looking and Cautionary Statements This presentation contains “forward‐looking statements” relating to, among other things, 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 novel coronavirus (“COVID‐19”) pandemic, potential future impact on our business
of new legislation, rules or policies, potential outcomes of legal proceedings, and 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 and are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Actual 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 us and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions, and otherfactors 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 our reports we file from time to time with the SEC (including our Annual Report on Form 10‐K, our Quarterly Reports on Forms 10‐Q and our Current Reports on Forms
8‐K), (ii) the risks and hazards inherent in the shell egg business (including disease, pests, weatherconditions, 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 (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 obligationsthat 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 and (vii) adverse results
in pending litigation matters. You are cautionednot to place undue reliance on forward‐looking statements because, while we believe that the assumptions on which the forward‐looking statements are based
are reasonable, there can be no assurance these forward‐looking statements will prove to be accurate. Further, the 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
publicly update these forward‐looking statements, whether as a result 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 shouldbe read together with, the most comparable GAAP financial measures. Reconciliations 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. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 1
CalMaine Foods: corporate snapshot U.S. EGG MARKET SCALE #1 shell egg producer and distributor(1) ~19% shell egg market share(2) ~13% share of U.S table egg layer flock(3) Category sales(4) 39%
3% 58% Conventional Specialty Egg products and other 9 MONTHS ENDED 2262022 FINANCIAL HIGHLIGHTS(5) $1.2 billion revenue $71.0 million EBITDA(6)
811.8 million dozens sold 47.2 million lbs. egg products sold(7) ~27.7 thousand acres owned 0x leverage(8) Channel Sales (9) 8% 3% 89% Retail Food Service Egg
productgs Presentation citations are available in the Appendix. Select items in this presentation may have been updated postfirst production and are available in the presentation posted on the CalMaine Foods’ website. CALMAINE FOODS’ OPERATING FOOTPRINT(10) Attractive presence in southern U.S. EggLand’s Best™ specialty franchise in NYC, LA and other metro areas CALM
operation Eggland’s Best TM exclusive franchise territory CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 2
Scaled production and distribution capacity(1) FULLY INTEGRATED OPERATIONS ~6.8 million eggs per hour production and processing capacity 41 production facilities 44 processing and packaging
facilities 25 feed mills 3 breeding facilities 2 hatcheries ROBUST PRODUCTIONTO DISTRIBUTION CYCLE Support laying: Computercontrolled 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 qualitycontrol centers then finished Refrigerate and deliver Eggs are part of cold chain through delivery FLOCK
HOUSING 9% 91% Companyowned Contract production FLOCK COMPOSITION (millions)(2) 9.4 42.7 Layers Pullets and breeders Image courtesy of CalMaine Foods. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 3
CALM investment thesis Why CalMaine Foods? 1 FOCUS ON FOOD CHOICE Affordable and nutritious protein portfolio Shift to premium, including cagefree, nutritionally enhanced, organic and hardcooked offerings Leverage scale to drive network efficiencies and customer reach Deploy key consumer insights to drive
future category growth 2 VALUE DRIVERS Excellent continued product and capability offerings to retail and food service customersFocus on improving our financial resultsDeep experience integrating acquisitions and executing on organic opportunities Strong experience
managing through an avian influenza crisis3 GROWTHPOSITIONEDEvolve our human capital focus that elevates colleague health andwell-beingMaintain capital allocation policy to support prudential expansion strategySupport customers through thecagefree transitionSustainability efforts focus on key areas, including food quality and safety, animal welfare and governanceCALMAINE FOODS | BURKENROAD REPORTS INVESTMENT
CONFERENCE | APRIL 29, 20224
Focus on food choice Image courtesy of Ksenia Gashkova, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 5
Position food portfolio to meet nutrition imperatives 1
—
Focus on food choice 2
—
Value drivers 3
—
Growth
positioned 2050 GLOBAL TRAJECTORIES ~9.7 billion people(1) 60% more food required(2) 69% calorie gap(3) PUBLIC HEALTH NEEDS
E
ggs supply “key nutrients” that support infant brain development in first two ye
ars of life(4) Eggs are “uniquely positioned”(5) to support the UN goals of Zero Hunger and Good Health and Well
Being(6) Eggs are the “gold standard” for protein; each egg delivers one serving of protein(7) CALL TO ACTION: FEED PEOPLE Se
rve as the most su
stainable producer and supplier of high
quality, fresh eggs and egg products in the U.S. Invest in a socially beneficial product portfolio “Access to nutritious and
affordable food is a fundamental human right.”
Cal
Maine Foods’ Human Rights Statement CA
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 6
Drive favorable mix while meeting customer needs 1
Focus on food choice 2
—
Value drivers 3
—
Growth
positioned CONTINUED VOLUME MIX SHIFT Market shift accelerated in 2019 w
ith state cage
free mandates and retailer commitments Driving higher specialty shell egg sales volumes, largely in line with retail market(1
) Fiscal year shell egg volumes* % of dozens sold 75% 25% 70% 30% 2019 2020 YTD Conventional Specialty *FY19 include
s the impact of spcialty
co
pack egg sales vaolumes *FY19 includes the impact of specialty
co
pack egg sales volumes. REVENUE CONTRIBUTION Continue to drive shell egg premium products’ revenue contributions Expanded spe
cialty capabilities, including cage
free, drives revenue contribution(2) Fiscal year net shell egg sales (%) & net average selling price (NASP) $ per dozen 62% 3
8% 60% 40% $1,041 $1,933 $1,206 $1,900 2019 2022 YTD All shell egg NASP $1,265 $1,414 Conventional sales mix & NASP Specialty
sales
mix & NASP SERVE EVOLVING RETAIL MARKET Despite mix shift, conventional egg maintains core retail market position Continue to
manage production pipeline to meet our customers’ needs Despite mix shift, conventional eggs maintain leading retail market s
hare
(%)(3) 4% 6% 11% 15% 8% 8% 77% 71% 2019 2022 YTD Free
range and pasture
-
raised Cage
free and organic Nutritionally enhanced Commodity white and caged brown Image courtesy of Grace O’Driscoll, Unsplash. CAL
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFE
RENCE | APRIL 29, 2022 7
Scale hardcooked egg offerings HARDCOOOKED IS AN ATTRACTIVE CATEORY Proteinpacked Ketofriendly and glutenfree Convenient for meal preparation and snacking Kidfriendly OUR CAPABILITIES ARE SCALING Hardcooked operation expected online
in late 2Q FY 23 with ~26 million pounds annual capacity Plan to selfsupply majority of eggs with initial focus on hardcooked egg products Leverage distribution relationships and drive category expansion from dairy to deli aisle Pursue growth in commercial food services
CATEGORY CAPTURES MORE VALUE Integrated production and processing capabilities help leverage more value from eggs during prepeak lay Ability to upcycle Medium eggs helps drive commercial throughput and category
penetration Egg size increases with hen maturity after ~15 weeks Medium: great for hardcooked Large+ sizes; popular at retail Image courtesy of Tahirah Walker, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 8
Value drivers Image courtesy of Allison Marras, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 9
Excellent service for bluechip customer base 1 —Focus on food choice 2 —Value drivers 3 —Growthpositioned MANAGE TOP10
RELATIONSHIPS(1) 1: Walmart/Sam’s Club 6: ALDI 2: H.E.B. 7: Costeo 3: Publix 8: Specialty Egg<2> 4: Food Lion 9: Kroger 5:Wakefern 10: C&S Wholesale Largest customer represents 29.8% of revenue Top3 customers represent 48.6% of revenue MAINTAIN DIVERSE CUSTOMER BASE Serve retail, wholesale and
foodservice customers Highquality, diverse and longstanding relationships +60,000 retail o cations O—Ö" Storedoor and distributioncenter delivery Proximity captures backhaul efficiencies in rising freightcost environment PROVIDE EGG SPECTRUM OF CHOICE<3>Cagefree OrganicNutritionallyenhancedFreerangePasture raisedBrownConventional
whiteOUR GOAL ISCUSTOMER CHOICECALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 202210
Continued key consumer insights evaluation 1
—
Focus on food choice 2
—
Value drivers 3
—
Growth
positioned CONVENTIONAL EGG BUYERS' SELECT DEMOGRAPHIC TRAITS«1» Four
plus person households Households with children Hispanic households Percent of U
S. conve
ntional egg spend Gen Z bom 1995+ 1% Millennial bora 1977
1995 33% GenX bom 1965
1976 22% Younger boomers born 1956
1964 19% Older boomers born 1946
1955 16% Retirees & seniors bora before 1946 9% CAGE
FREE EGG BUYERS’ SELECT DEMOGRAPHIC TRAITS Thre
plus person households with income of $look+ Millennial and Gen
X buyers Asian, Hispanic and households with children Dense urban area residents Percent of U
S. cage
free egg spend Gen Z bom 1995+ 1% Millennial bom 1977
1995 36% Gen X bom 1965
1976 2
4% Younger boomers bom 1956
1964 17% CS der boomers born 1946
1955 14% Retirees & seniors bom before 1946 8% ~98% of U.S. households purchase shell eggs and egg products. Buyers are prima
ry cooks and meal makers who also seek “quick and easy” meal soluti
ons when shopping/2) Plot Area CAL
-
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 11
Leverage production to manage expense 1
—
Focus on food choice 2
—
Value drivers 3
—
Growth
positioned MANAGE COST OF SALES (COS) Farm produc
tion costs, largely feed ingredients, facility and amortization, drives COS expense Since 2019, reduction in outside egg purc
hased have helped offset shell egg cost of goods for dozens sold Cost of sales components ex
egg products $ millions and % contribu
tion'' $636 $223 $251 $669 $212 $134 56% 20% 22% 64% 20% 13% 2019 2022 YTD Farm production Processing packaging, and warehous
e Egg purchases and other EMBED SUPPLY CHAIN RESILIENCE Dual
and multi
sourcing for key inputs, including feed ingredients, carton
s and other packaging Supply chain thesis intact: while input prices remain volatile, we anticipate we will be able to source
and meet our needs FY21 Top
20 vendor expense exposure^ Feed ingredients Egg cartons and packaging. 17% Poultry stock, 1% ^ Labor.
4% Housing and equipment. Franchise and marketing, 8% Egg purchases, 18% SCALE SELF
PRODUCED VOLUMES Oar continued investment in cage
-
free capabilities drives higher produced
to
-
sold ratio volumes Purchase of remaining interest in Red River Valley Egg Fa
rm further reduced egg purchase needs Shell egg percent produced
-
sold ratio 80% 93% 2019 2022 YTD ■ Produced to sold ratio CAPITALIZE ON CAPABILITIES Self
production offers relatively attractive expense profile compared to outside purchase opportunities
Self
produced capability additionally supports flexibility to meet customer order needs Self
produced and outside egg purchase cost % and $ per dozen $0.95 Purchased $1.16 Purhcased 22% $1.28 23% $1.57 34% 30% 44% 47%
Processing, packaging & warehouse Oth
farm costs, including amortization
Feed
CAL
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29,
2022
Navigate volatile feed ingredient pricing 1
—
Focus on food choice 2
—
Value drivers 3
—
Growth
positioned MONITOR FEED INGREDIEN
T INPUTS Expect continued feed market volatility given market drivers Russian war against Ukraine has hampered Black Sea grai
n exports USDA’s March projections estimate that 2022 U.S. corn planted acreage declines to
89.5 million, or ~4%, vs. prior year*'
) Average observed CBOT feed ingredient price in CALM fiscal quarter As of April 22.2022 $299 $288 $359 $423 $411 $364 $338 $
412 $473 $3.34 $3.28 $3.92 $4.46 $6.10 $5.96 $5.43 $6.13 $7.57 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Average com px/bu
shel A
verage soybean meal px/ton U.S. CORN SUPPLY TIGHTENS U.S. April corn stock
to
-
use ratio projection at
9.6% for 2021/2022 planting and harvest cycled Stocks for major corn exporting countries, including the U.S., expected to be
lowest since 12/13(3) 2021/2
022 USDA U.S. corn ending stock bushel millions and total use projections 0.104 0.096 0.096 14835 14935 14935 1540 1440 1440
Feb 22
Mar 22
Apr Corn ending stock Corn total use Projected stock
total use ratio CALM FEED APPROACH Remain focused on monit
oring feed ingredients' pricing exposure Stay close to markets with purchases Access feed markets opportunistically Continued
focus on production efficiencies under our control FY22 feed ingredients’ price impacts on per dozen shell egg farm productio
n cos
ts«)
in feed ingredient $ per dozen impact Bushel of corn $0.28 $0.01 Ton of soybean meal $25.50 $0.01 CAL
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 13
Build on strong acquisition and integration track record SUCCESSFUL INTEGRATION HISTORY INFORMS OUR OUTLOOK 23 SUCCESSFUL INTEGRATIONS SINCE
1989(1) ACQUISITION BENEFITS Geography Cagefree capability Milling Processing SYNERGY HIGHLIGHTS Customer proximity Specialty franchise access Integrated distribution Scalable throughput TOPFIVE PRODUCERS: LAYER HEN RANKINGS(2) Top 5 producers own ~37%
of U.S. layer hen flock Other 62% CalMaine Foods 14% Rose Acre Farms 8% Hillandale Farms 6% Versova Holdings 6% Daybreak Foods 4% In 2020, the topfive broiler hen producers processed59% of U.S. readytocook products(3) ADDITIONAL MEANINGFUL OPPORTUNITIES AHEAD(4) March 2022: $82.5 million investment for new cagefree capacity and conversion of existing capacity to cagefree 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 hardcooked and other higher-value egg products 3Q22: ~$123.3 million
of capital allocated but not yet deployed to enhance cagefree capabilities CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 14
Focus on improving our financial results 1 —Focus on food choice 2 — Value drivers 3 —GrowthpositionedDRIVE NET SALES(1) Strive to improve topline growth that is levered to shell egg price and continued customer wins Mix shift to specialty helps mitigate reliance on more volatile conventional shell egg prices FY revenue $ millions net average selling price (NASP) $ per dozen
$1.265$1.231$1.217$1.414$1,361$1,352$1,349$1,1842019202220212022
YTDRevenue Shell egg NASPDRIVE EBITDA GROWTH(2) Working to drive our EBITDA contribution and margins higher Maintain focus on revenue shift with continued expense management contribution FY adjusted EBITDA
$ millions EBIDTA margin % 9% 6% 4%6%$128$79$50 $712019202220212022
YTDAdjusted EBITDAAdjusted EBITDA marginFOCUS: LONGTERM VALUE FY22 earnings per share improvement driven by improved shell egg pricing Remain focused on platforming the business to drive longerterm value FY earnings per diluted common share (EPS) $1.12$0.38$0.04$0.462019202220212022 YTDEPS
Image courtesy of Priscilla Dupreez, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 15
Seasoned HPAI risk management team 1 — Focus on food choice 2 —Value drivers 3 —Growthpositioned MANAGING THROUGH AVIAN INFLUENZA Our longtenured and seasoned operations team helped us manage through the 2014 2015 avian influenza outbreak. They continue to help us protect our people, our food and our flock. WHAT IS HIGHLY PATHOGENICAVIAN INFLUENZA (HPAI?)(1) Caused by an “influenza type A virus” Impacts chickens, turkeys and other domesticated birds, in addition to wild birds HPAI has longimpacted commercial poultry and egg production in Europe and Asia U.S. domesticated bird outbreak confirmed February
8, 2022 ~23.3 million table egg layers culled; ~7.2% of the table egg layer flock impacted based on Feb. 2022 levels(2) 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 that prevent sitespecific contact between our flock and wild birds SERVE CUSTOMERS DURING HPAIIMPACTED EGG MARKET Continue to focus on meeting customer needs in any market conditions Ability to selfproduce helps minimize HPAI transmission risk tied to outside egg purchases USDA
lowered shell egg production and per capita disappearance estimates for CY22 U.S. egg production & disappearance projection changes since HPAI confirmation(3) Feb22 Apr22 Revision Shell egg production estimates (mn. dzns.) 9,430 9,070 3.8% Per capita egg disappearance 287.3 277.8 3.3% CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 16
Growthpositioned Image courtesy of Jingxi Lau, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 17
Poised to execute amidst tighter supply indicators 1 —Focus on food choice 2 —Value drivers 3
Growthpositioned U.S. LAYER HEN TIGHTENED SUPPLY«» Layer hen supply is a key indicator of table egg production capacity* • Apr. l, 2022: table egg layer hen inventory of 305.2 million reflects recent HPAI impacts • Lowest level since Feb. 2016, during 20142015 outbreak recovery7 • In this cycle: 23.3 million layer hens, or 7.2%, national flock impacted based on Feb. 2022 preHPAI levels • This cycle impacts felt earlier in the season • Current outbreak impacted layer hen flock in lateFeb. 2022 • Previous outbreak impacted layer hen flock midApr. 2015 U.S. table egg layer hen inventory (millions) I April 1. 2022 Table egg layers hen inventory (millions) 345335325315305295 2852754/1/20144/1/20154/1/2016 Table
egg layer hen inventory, trailing 5year avereage (millions)Table egg layer hen inventory (millions)TABLE EGG SUPPLY MAY BE MODULATING«2* U.S. table egg production modulating since 20192020 highs • Mar. 2022 ~8.0 billion shell production decreased ~i.8% YoY; trails well below fiveyear monthly average • Twelvetrailing month (TIM) shell egg production levels below 2020 and 2021 levels • Mar. 2022 table egg break up 10.5% YoY • Indicates more constructive food service demand vs. 2021COVID-19 impacted period • TIM break increased 9.1% versus prior year U.S. shell egg monthly and TTM production (billions) I April 1. 2022 U.S. shell egg monthly and TTM
production (billions) | April 1, 2022 tt Monthrly table egg production (billion)TM table eg produciton (billion) 8.5
7.5
6.5
4/1/20144/1/20154/1/20164/1/20174/1/20184/1/20194/1/20204/1/20214/1/2022TTM
table egg productionMonthlry table egg productionsCALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 18
Continue to evolve our strong human capital focus 1 — Focus on food choice 2 Value drivers 3 —Growth-positioned 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 initiatives. Rhonda Whiteman serves as VicePresident, Operations Accounting. Rhonda’s role is to plan, direct and coordinate operational activities to
drive development and implementation of efficient and costeffective systems to meet current and future enterprise needs. ENHANCED HUMAN RIGHTS FOCUS CALM Board of Directors approved
Human Rights Statement in 202lM 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 Coals 2 ZERO HUNGER 3 GOOD HEALTH AND WELLBEING 8 DECENT WORK AND ECONOMIC GROWTH OFFER ATTACTIVE WORK CULTURE Strive to attract and retain talent with competitive compensation
and benefits Continue to offer abovemarket compensation premium average weekly wage versus industry Health plan and insurance Retirement plan Insurance Colleague assistance CONTINUED
COMMUNITY SUPPORT(2) We support hunger relief in communities where we operate and beyond Since FY 2018, we have donated ~5.4 million dozen fresh shell eggs, or ~64.5 million
servings of protein Cumulative fiscal year fresh egg donations (dozen millions) 0.3 0.8 2.2 4.7 5.7 2018 2019 2020 2021 2022 YTD CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT
CONFERENCE | APRIL 29, 2022 19
Drive colleague engagement and safety outcomes 1 —Focus on food choice 2 —Value drivers 3 —Growthpositioned Trisha Perkins, left, and Melvin Bonds serve as Corporate Safety Managers who develop and deploy enterprise safetyprotocols and training. They also manage enterprise health and safety compliance and regulatory reporting. DRIVE STRONG SAFETY
OUTCOMES Strong and steadily improving safety outcomes Consistent poultryindustry safety outperformance Vendors and contractors must adhere to our health and safety protocols OSHA safety outcomes: poultryraising industry Total recordable injury rate (TRIR) %
| NAICS 1123(1) 4.5 4.9 3.5 2.9 2019 2020 2021 CALM Industry 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 wellbeing in a businessasusual operating model CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 20
Execute against capital allocation priorities 1 — Focus on food choice 2 Value drivers 3 —Growthpositioned
OX leverage Our $250 million undrawn credit facility provides flexibility and allows for growth(1) MANAGE CASH PRIORITIES Selective acquisition posture
for cagefree capacity Variable dividend policy driven by commoditylike, cyclical business model FY use of cash ($ millions)* $128$169$97$100$42 $45$2 $6$18 $45$68$124$95
$492019202020212022 YTDCapexAcquisitionsDividends
paidFY 2022 use of cash includes $6.1 million accrual for payment of 3QFY22 common dividend. Select totals may not foot to Forms 10-Q and Forms 10K due to rounding PRIORITIZE
LIQUIDITY Maintain current assets, including cash and securities’ balances, to support operating needs Continued focus on funding investments for longerterm growth, primarily organic and bolton cagefree opportunities Total current assets, cash and investment securities ($ millions) $568$522$520$523$319$232$170$97 2019 2020 2021 2022 YTD Total cash and AFSTotal current assetsBALANCE CAPEX PIPELINECommitted
$625 million to expand cagefree production capabilities since 2008Our cagefree tenorremains relatively balanced between allocation and deploymentCagefree investment pipeline ($ millions)4Q22$41$115 $1562Q22$52$104$1561Q22
$39$99$1394Q21 $47$94$1413Q21
$52$90$142$25 $45$65$85
$105 $125 $145 $165 Remaining projected costSpent at quarterend Project costCALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 202221
Positioned to supply transitioning shell
egg demand 1
—
Focus on food choice 2
—
Value drivers 3
Growth
positioned CAGE
F
REE 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 2026W CAGE
REE DEMAND REQUIREMENTS Assess current state ~33%
35% flock currently housed in cage
free conditions'2) Meet retailer commitments
70% flock may require cage
free housing by 2026; average capital cost ~$45 per bird's) Invest capital
$5.9 billion required
industry investment to complete estimated cage
free capacity build'4) CALM CAGE
FREE SUPPLY PLAN Meet customers’ needs
$625 million CALM cumulative commitment to expand cage
free capabilities since 2008(5) Align sales 23.0% FY22 total net shell egg sales
tied to cage
free egg sales; will continue to pace revenue with cage
-
free uptake(6) U.S. retail cage
free egg sales at multi
outlet retailers'7* CY 2021 CY 2022 YTD
Retail volume share 1 5.1% 19.6%
Retail sales share 25.3% 28.6% Image courtesy of Cal
Mai
ne Foods. CAL
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 22
Building on our sustainable cornerstone 1
—
Focus on food choice 2
Value drivers 3
—
Growth
positioned QUALITY FOOD CHOICES Our efforts continue to drive strong
results #1 score #1ISS score: product safety, quality & brand (1) zero product recalls or market bans in prior three fiscal y
ears^ 100% SQF™
certified with very strong compliance record^) ANIMAL WELFARE Our certifications evidence strong welfare commitmen
t(7) Certifications Protocols Breeds Water, nutrition and handling protocols advance our ability to deliver for stakeholders
White Leghorn
a relatively high
welfare breed
—
produces the majority of our eggs ENVIRONMENTAL STEWARDSHIP We continue to evalua
te our impacts GHG Land Water intensity use use relatively favorable animal protein emission profile^ our owned farms careful
ly manage nutrient plans^) committed to robust water management in value chain(6) CORPORATE GOVERNANCE Committed to strong an
d dive
rse board(8) 57% independent 29% female 14% multicultural Outside director joined the Board in March 2021 29% of our board me
mbers identify as female 14% of board members identify as a member of ethnic or cultural minority community CAL
MAINE FOODS | BURKE
NROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 23
Key takeaways Image courtesy of Anshu A, Unsplash. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 24
Key takeaways Quality food choices 1.073 billion dozens sold FY21 60+ years operating Largest producer and distributor of fresh shell eggs and egg products in the U.S. Provenand highly efficient operators with
deep talent bench and industry expertise Nimble and poised to meet evolving consumer foodchoice 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 CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 25
Appendix Image courtesy of Max Griss, Unsplash. CAL-MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE |
APRIL 29, 2022 26
Key market indicators URNER BARRY SOUTHEAST LARGE INDEX Observed FY average daily price per dozen(1)
$1.55
$1.76
$0.85
$1.49
$1.23
$1.22
$1.16
$1.61
2015
2016
2017
2018
2019
2020
2021
2022 YTD
U.S. CONSUMER EGG EXPENDITURES(2) U.S. consumer demographic egg
expenditures
2015 through 2020
$90
$82
$69
$61
$69
$66
$68
$82
$67
$73
$63
$80
$171
$80
$70
$60
$50
$40
$30
1/1/2015
1/1/2016
1/1/2017
1/1/2018
1/1/2019
1/1/2020
25
34
45
54
56
64
74
CALM FEED SENSITIVITY ANALYSIS Change in price per
bushel of corn
Change in price per ton soybean meal
($0.84)
($0.56)
($0.28)
$0.00
$0.28
$0.56
$0.84
($76.50)
0.486
0.496
0.506
0.516
0.526
0.536
0.546
($51.00)
0.496
0.506
0.516
0.526
0.536
0.546
0.556
($25.50)
0.506
0.516
0.526
0.536
0.546
0.556
0.566
$0.00
0.516
0.526
0.536
0.546
0.556
0.566
0.576
$25.50
0.526
0.536
0.546
0.556
0.566
0.576
0.586
$51.00
0.536
0.546
0.556
0.566
0.576
0.586
0.596
$76.50
0.546
0.556
0.566
0.576
0.586
0.596
0.606
* Based on FYTD 22 actual costs; table flexes feed cost input
s to demonstrate $0.01 impacts per dozen egg feed production costs.
CALM FEED IMPACT PER DOZEN(3)
Corn and soybean meal prices and impact per dozen eggs produced ($)
Feed cost $ per dozen produced
Corn $/bushel & Soy 100's $ton
0.70
$6.13
7.00
0.60
$0.56
6
.00
0.50
$4.12
5.00
0.40
4.00
0.30
3.00
0.20
2.00
1Q20
3Q20
1Q21
3Q21
1Q22
3Q22
1.00
Feed cost
Corn
Soybean meal
CAL
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022
27
Select income statement highlights
Cal
Maine Foods' select
income
statement highlight (in thousands,
excepted
store amount) 39 weeks ended Fiscal year ended February 26. 2022 Februar
/ 27, 2021 May 29. 2021 May 30. 2020 Net sale
1,1 84,195
999,189
1,348,987
1,351,609 Cross profit 1
41,974 1 22,732 160,661 179,588 Operating income (loss) (2,162) (13,238) (26,264) 1,269 Other income, net 21,814 15,462 16,31
5 1 8,790 Income (loss) before income taxe
19,652 2,224 (9,949) 20,059 Net income (loss) attributable to Cal
Maine Foods, Inc
22,664
6,304
2,060
$
1 8,391 Net income (loss) per common share: Basic
$
0.46
0.13
0.04
$
0.38 Diluted Weighted average shares outstanding:
0.46
0.13
$
0.04
0.38 Basic 48,888 48,51 1 48,522 48,467 Diluted 49.035 48.649 48.656 48.584
CAL
-
MAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022
28
Select operating results (in thousands, except percentage data) 39 weeks ended Fiscal year ended February 26, 2022 February 27, 2021 May 29, 2021 May 30, 2020 Dozens
sold: Conventional 568,51 1 599,625 785,446 81 3,255 Specialty 243,310 21 7,735 287,765 255,895 Total 81 1,821 81 7,360 1,073,21 1 1 ,069,1 50 Dozens produced
757,677 731,205 970,837 927,799 Percent produced to sold 93.3% 89.5% 90.5% 86.8% Percent specialty sales dozens 30.0% 26.6% 26.8% 23.9% Percent
specialty sales dollars 40.2% 4 2.0% 41.1% 36.8% Net average selling price per dozen: Conventional S 1.206 $ 0.934 $ 0.976 $ 1.021 Specialty S 1.900 $ 1.876 $ 1.876 $
1.897 Total $ 1.414 $ 1.1 85 $ 1.21 7 $ 1.231 Farm production costs (per dozen produced) Feed s 0.546 $ 0.4 22 $ 0.446 $ 0.409 Other $ 0.3 50 $ 0.318 $ 0.320 $ 0.329 Total $0.896 $ 0.740 $ 0.766 $ 0.738 Outside egg purchases (average
cost per dozen) $ 1.570 $ 1.230 $ 1.220 $ 1.260 CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 29
EBITDA reconciliation NonGAAP Measure EBITDA EBITDA is a nonGAAP measure and defined as net income attributable to CalMaine Foods, Inc. plus interest, taxes, depreciation and amortization.The following table sets forth a reconciliation of EBITDA to net income attributable to CalMaine Foods, Inc.: Earnings before interest, taxes, depreciation and amortization (EBITDA) Fiscal year ended 39 weeks ended (dollar thousands) 2017 2018 2019 2020 2021 Feb21 Feb22 Net income floss) attributable to CalMaine Foods, Inc Add: Interest expense (74,278) 318 125,932 265 54,229 644 18,391 498 2,060 213 6,304 205 22,664 262 Add: Income tax expense (benefit)
(39,867) (8,859) 1 5,743 1,731 (12,009) (4,080) (2,921) Add: Depreciation and amortization 49,113 54,026 54,650 58,103 59,477 44,391 50,996 EBITDA
(64,714) 171,364 125,266 78,723 49,741 46,820 71,001 Anti trust legal settlements & related fees 2,537 83,140 2,495 117 53 0 0 Adjusted EBITDA (62,177)254,504 127,761 78,840 49,794 46,820 71,001 CALMAINE FOODS | BURKENROAD
REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 30
Citations Slide 2
–
Cal
Maine Foods’ snapshot 1)
Rankings from Watt Poultry. “2022 Poultry Top U.S. Egg Producers Rankings.” Data as
of December 31, 2021. 2)
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 exp
orts
. Also excludes CALM portion of eggs
sold to food service channel. 3)
Company filings and USDA. Cal
Maine Foods’ table egg layer hen flock as of February 26, 2022 comprised 42.7 million. As of February 28, 2022, USDA reports
table type layer hen flock of ~
322.7 million. 4) Expressed as percent of fiscal year 2022 net sales. Percent of specialty sales are classified as nutritiona
lly 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 no
t foot to published Company disclosures, including Forms 10
K, due to rounding. 5) Financial highlights represent year
date, fis
cal year 2022 data as of February 26, 2022 unless otherwise noted. 6)
Non
GAAP EBITDA reconciliation located in Appendix 7) Shell egg operations have run at or exceeded shell egg capacity for the fis
cal year as published in the most recent Form 10
K 8) Bal
ance sheet leverage as February 26, 2022. 9) Expressed as percent of fiscal year 2022 year
date sales as of February 26, 2022. Select totals may not foot to published Company disclosures, including Forms 10
-
Q and 10
K, due to rounding. 10) Eggland’s Bes
t franchise territory includes Land O’Lakes market areas and includes investment in unconsolidated entity. Slide 3
Scaled production and distribution capacity 1) As of CALM fiscal year
end 2021 unless otherwise noted. 2) As of
3QFY 2022. Slide 6
–
Positio
n food portfolio to meet nutrition imperatives 1) Intergovernmental Panel on Climate Change. Climate Change 2022: Mitigation
of Climate Change. Working Group III Contribution to the Sixth Assessment Report of the Intergovernment
al Panel on Climate Change.
April 4, 2022. https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_FullReport.pdf. Retrieved on April 6, 2022. 2) Gra
ziano Da Silva, Jose. “Feeding the World Sustainably.” United Nations UN Chronicle. https://www.un.org/en/chronicle/article/f
eeding
world
sustainably. Retrieved on October 21, 2021. 3) Ranganathan, Janet. World Resources Institute. “How to Sustainably Feed 10 Bil
lion People by 2050, in 21 Charts”. December 5, 2018. World Resources Institute. “Creating a Sus
tainable Food Future: Interi
m Findings.” December 2, 2013. https://www.wri.org/research/creating
sustainable
food
future
interim
findings. https://www.wri.org/insights/how
sustainably
feed
10
billion
people
2050
21
charts. 4) USDA. Dietary Guidelines for Americans, 2020
2025 Chapter
2: Infants and Toddlers. Page 60. https://www.dietaryguidelines.gov/sites/default/files/2021
03/Dietary_Guidelines_for_Americans
2020
2025.pdf . Retrieved on November 19, 2021. 5) Morris, Saul S. “An egg for everyone: Pathways to universal access to one of
nature’s most nutritious foods.” Wiley Maternal and Child Nutrition. March 17, 2018. https://onlinelibrary.wiley.com/doi/epdf
/10.1111/mcn.12679. Retrieved on October 21, 2021. 6) United Nations. Goal 2: Zero Hunger. https://www.un.org/sustainabledeve
lopme
nt/hunger/. Retrieved on October 21, 2021. 7) Zelman, Kathleen M. “Good Eggs: For Nutrition, They’re Hard to Beat” Webmd.com.
https://www.webmd.com/diet/features/good
eggs
for
nutrition
theyre
hard
beat#1 Retrieved on October
21, 2021 and Cal
Maine Food
s’ Fiscal Year 2020 Scaling our Sustainability
report. We believe our finished eggs, which are nutrient dense, are important to help people meet their nutritional needs. With each egg, we deliver ~70 calories and one serving, or six grams
of protein, whichcomprises about 10 percent of the protein required to support a 2,000calorie daily nutrition need. Slide 7 Drive favorable food portfolio mix while meeting customer needs 1) Company filings and other public disclosures. Specialty sales are classified as nutritionally enhanced, cagefree, organic, brown, pastureraised and freerange eggs. 2) Represents percent of net shell egg sales and excludes Other sales, including hardcooked eggs, hatching eggs, other egg products, hens and manure, which are included with our shell egg operations. 3) IRI Unify. U.S. multioutlet data tied to CALM fiscal year through February 27, 2022. Select totals
may not foot due to rounding. Percent of marketshare data based on shell egg dozens sold. IRI multioutlet retail databased on representative sampling. Slide 10 Excellent service for bluechip customer base 1) Data as of fiscal year 2021 unless noted. For more information about our revenue concentration, please review our most recent Form 10K. 2) Includes investment in unconsolidated entity. 3) Eggs packed in USDA grademarked consumer packages labeled as cagefree 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 USDAgrademarked consumer packages labeled as freerange 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 nettinglike material. USDA does not regulate pastureraised claims; these husbandry are typically
certified by thirdparty providers. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 31
Citations Slide 11 Continued key consumer insights evaluation 1) IRI Unify. All Outlets, Last 52 Weeks ending 03.27.2022.Conventional Egg Buyers n=48,934 and Cage Free Egg Buyers n= 16,026 2) Numerator, Psychographics. Slide 12 –Leverage production to manage expense 1) Company data. Slide 13 Navigate volatile feed ingredient pricing 1) USDA Foreign Agricultural Service. Stability in Rice Markets Contrasts with Volatility in Wheat and Corn. April 2022. https://apps.fas.usda.gov/psdonline/circulars/grain.pdf.
Retrieved on April 15, 2022. USDA Prospective Plantings. March 31, 2022. Prospective Plantings 03/31/2022 (usda.gov). Retrieved on April 18, 2022.
2) World Agricultural Supply and Demand Estimates (WASDE). April 11, 2022. https://www.usda.gov/oce/commoditymarkets/wasde/historicalwasdereportdata. Retrieved on April 15, 2022. 3) 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/ukraineconflictandotherfactorscontributinghighcommodity-pricesand-foodinsecurity.
Retrieved on April 18, 2022. 4) Company data for fiscal year 2022 YTD. Slide14
Build on strong acquisition and integration track record 1) Company press releases and filings 2) 2022 Watt Poultry Top U.S. Egg Producers’ rankings. https://www.eggindustrydigital.com/eggindustry/january_2022/MobilePagedReplica.action?pm=2&folio=AD1#pg1
3) Watt Poultry USA. “Top broiler companies contend with COVID19 in 2020”. https://www.wattpoultryusa-digital.com/wattpoultryusa/march_2021/MobilePagedArticle.action?articleId=1668232#articleId1668232 4) Company
press releases and filings. Slide 15 Focus on improving our financial results 1) Company filings. 2) EBITDA is a nonGAAP measure. For a
reconciliation o nonGAAP measures to GAAP presentation please review the nonGAAP reconciliation located in Appendix. Slide 16 Seasoned HPAI risk management team 1) 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/animaldisease-information/avian/avianinfluenza
2) 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/animalhealth/animaldiseaseinformation/avian/avianinfluenza/2022hpai. 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. 3) USDA’s WASDE report as of April 2022. Retrieved on April 12, 2022. https://www.usda.gov/oce/commodity/wasde/wasde0422.pdf
Slide 18 Poised to execute amidst tighter supply indicators 1) U.S. Department of Agriculture National Agricultural Statistics Service. April 21. 2022. Retrieved on April 21, 2022. https://quickstats.nass.usda.gov/results/006F15BD-5F9034AF9BCDD90873B34E20 2) U.S. Department of Agriculture National Agricultural Statistics Service. April 21. 2022. Retrieved on April 21, 2022. https://quickstats.nass.usda.gov/results/93B5C494694D3749B878-CF91F27BDBE6
CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 32
Citations Slide 19
Continue to evolve our strong human capital focus 1) Cal
Maine Foods’ Human Rights Statement. https://www.calmainefoods.com/medi
a/1189/cal
maine
foods
human
rights
-
statement
final.pdf. 2) Cal
Maine Foods’ Company data. Slide 20
Drive colleague engagement and safety outcomes 1) Occupational Safety and Health Administration (OSHA) total recordable incid
ent 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) release
d data. Slide 21
Execute against capital allocation priorities 1) Company filings and
press releases. Slide 22
Positioned to supply transitioning shell egg demand 1) 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. 2) USDA cage
free table egg layer flock estimates as of March 31, 2022. 3) Per United Egg Producers article published Feb. 2020 “Meeting c
age
free commitments impossible for egg producers. ” https://www.f
eedstuffs.com/news/meeting
cage
free
commitments
impossible
egg
producers. 4) 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 Mark
ets Overview April 22, 2022. “Cage
free commitments as of March 2022 remain 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.” 5) Company filings and news releases. Includes the impact of the March, 2022 announced $82.
5 million investment in
Kentucky and Utah locations. 6) Company filings. 7) Includes IRI data forcagefree, freerange and pastureraised eggs. Percent of market share data based on shell egg dozens sold and share of sampled consumer retail spend for eggs sold for calendar year 2021 and calendar year 2022 as of March 13, 2022. Slide 23 Building on our sustainable cornerstone 1) As of April 1, 2022. For description of ISS ESG Ratings and Rankings visit https://www.issgovernance.com/esg/ratings/. 2) 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. 3) 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. 4) FAO.org. Emissions intensities. http://www.fao.org/faostat/en/#data/EI
5) 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). 6) 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/calmfy2020sustainabilityreport.pdf. 7) 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/
8) Board composition as of 3Q FY 2022. Slide 27 – Key market indicators 1) CALM FY Urner Barry Southeast Large egg pricing. FY2022 reflects pricing through April 22,2022. 2) Federal Reserve Bank of St. Louis
data. 3) CBOT observed pricing. 1QFY 2020 to 3Q FY2022. CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 33
CalMaine Foods CALMAINE FOODS | BURKENROAD REPORTS INVESTMENT CONFERENCE | APRIL 29, 2022 34