6th annual latin america executive conference

7/27/2019 6th Annual Latin America Executive Conference

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6th Annual Latin AmericaExecutive ConferenceKey Biscayne (FL) – January, 2014



2PAGE

Disclaimer

This release contains forward-looking statements relating to the prospects of the business,

estimates for operating and financial results, and those related to growth prospects of JBS.These are merely projections and, as such, are based exclusively on the expectations ofJBS’ management concerning the future of the business and its continued access to capitalto fund the Company’s business plan. Such forward-looking statements depend,substantially, on changes in market conditions, government regulations, competitivepressures, the performance of the Brazilian economy and the industry, among other factors

and risks disclosed in JBS’ filed disclosure documents and are, therefore, subject to changewithout prior notice.



JBS S.A.



4PAGE

Founded in the 1950’s in Midwest of Brazil

IPO in 2007

Leadership position in the global food industry

Estimated revenues of around US$50 billion in 2014

Presence in 5 continents and sales to more than 150 countries

Production facilities in the low cost geographies

185,000 employees

Productioncapacity 12 million birds/day

Chicken

70 thousand hogs/day

Pork

25 thousand lambs/day

Lamb

100 thousand hides/day

Leather

100 thousand heads/day

Beef

JBS S.A. at a glance

After Seara Brasil acquisition



5PAGE

JBS Strategy To Move Up Value Chain

Rationale

Production platform

Sales and distribution platform

Value added products

Branding

Financial

Structure

Experienced

Management

Cost

Reduction,

Process

Optimization

Risk

ManagementJBS’s Value & Strategy

Customized and further processed

products for the end users

Expanding a global distribution

platform to reach end clients

Associating quality and branding to

increase client loyalty

Develop an efficient and diversified

global production platform



6PAGE

JBS Strategic Positioning

1965

1990

1970

1995

1975

2000

1980

2005

1985

2010

World’s Food* Surpluses and Deficits (Net intra-regional trade, million tonnes)

150

100

50

0

50

100

150

* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.Source: The Economist

North America

South America

Australia

Eastern Europeand former

Soviet Union

Western

Europe Asia

Middle East

& Africa

Central

America



7PAGESource: USDA 2012*Buffaloes / **Excluding Brazilian exports

JBS is present in the main exporter marketsGlobal Protein Trade – Largest Exporters

Canada 4.0%

New Zealand 6.2%

Mercosul** 9.3%

Others 14.7%

USA 13.4%

Brazil 18.4%

India* 17.0%

Australia 17.0%

Chicken Exports

Beef Exports

Pork Exports

Turkey 2.8%

Thailand 5.3%

China 4.1%

E.U. 10.8%

Others 9.4%

Brazil 34.8%

USA 32.7%

Chile 2.5%

Brazil 9.0%

China 3.2%

Canada 17.0%

Others 4.4%

USA 33.4%

E.U. 30.5%



8PAGE

Meat Consumption Forecast (Million tons) Expected increase in meat demand by country groups

between 2010 - 2020

Emerging

Developed

Source: FAO - OECD

Meat Consumption Growth Forecast 2011-2020

19%

81%

Poultry Pork Sheep Beef

2020

228.1

Ave 2008-10

278.2

2001

338.3

67.595.1

122.5

90.8

105.7

126.658.6

64.6

73.6

11.2

12.7

15.6



Seara at a Glance and

Transaction overview



10PAGE

Seara Brasil – Successful history

Seara Brasil: Leading platform resulting from the integration and acquisition of over 20 assets/brands since 2007

19561980

1982

1989

1996

2005

2009

2013

Frigorífico Seara is

founded

Acquisition of Frigorífico

Seara by Ceval Agro

Industrial S.A

First Brazilian company

to export chicken cuts to

Europe

Ceval incorporates Seara Agro Industrial S/A

and Seara becomes one of Ceval’s brand

Obtains an ISO 9002 certification for the

whole chicken production chain – Itapiranga,

SC (1st. Company in Brazil)

Seara is acquired by

Cargill

Marfrig acquires Seara and starts the

integration of previously acquired

assets in the sector

JBSacquisition ofSeara Brasil

http://www.superitos.com.br/

http://www.seara.com.br/seara/linha/margarinas/

http://www.seara.com.br/nhobento/



11PAGE

Seara Brasil – Assets overview

Geographic Footprint and Capacity

Sizeable operation platform 2.6 million birds per day

16.2 thousand hogs per day

10 thousand hides per day

80 thousand tons of processedproducts per month

Slaughterhouses

Industrialized/Processed Products



12PAGE

Seara Brasil – Strong brand portfolio with more than 2.2 thousand SKU

Strong brand awareness at different price points with Seara as a global brand

Processed & elaborated Processed & frozen Margarines

ProcessedProcessed & frozenProcessed & elaborated

Processed & frozenProcessed & elaborated Light processed & elaborated

http://www.seara.com.br/seara/linha/margarinas/



13PAGE

Potential value creation from multiple differential

Source: Company filings and Bloomberg as of June 11, 20131 Considers enterprise value of R$5.6bn for Seara Brasil, normalized sales of R$10.0bn and normalized EBITDA margin of 10%

Illustrative analysis of Seara Brasil firm value at different scenarios

Sensitivity analysis at different normalized EBITDAprojection of Seara Brasil

Normalized EBITDA margin

FV of Seara Brasil at

transaction multiple

(5.6x EBITDA)

FV of Seara Brasil at

Packaged food

Companies trading

multiple (10.1xEBITDA)

5,65,6 5,6 5,6 5,6

4,55,6

6,67,6

8,5

10,1

11,2

12,2

13,214,1

Potentialvalue creation

of R$8.5bn(Seara Brasil withsame margin ofPackaged foodCompanies and

evaluated at samemultiple)

Firm value of Seara Brasil (R$bn)1

10.0% 11.0% 12.0% 13.0% 14.0%

Normalized EBITDA margin of Seara Brasil(assuming normalized sales of R$10.0bn)

Implied normalized

EBITDA of Seara Brasil

R$1.0 bn R$1.1 bn R$1.2 bn R$1.3 bn R$1.4 bn

EBITDAmargin of

PackagedFood

companies



14PAGE

JBS successful track record of turnaround and integrating operations

Pilgrim’s Pride acquisition (2009) Swift acquisition (2007)

Key initiatives

Cost reduction Efficiency improvement

Margin improvement Integration of processes

SG&A control Brand repositioning

1.095

3.624

800 42 144 110

2.529

Dec-09 Nov-10 Jan-12 Mar-12/Nov-12 Total JBS investment Value creation toJBS

Current market valueof JBS in PPC

Example: JBS value creation in Pilgrim’s Pride acquisition

JBS USA acquisition

of 64% stake in PPC

Increase ownership

to 67.3%

JBS USA

oversubscription in

PPC rights offering

Acquisition of additional

shares from Lonnie “Bo”

Pilgrim and Don

Jackson1

Total JBS investment in PPC

1 JBS USA acquired 18.7 mm shares from Lonnie “Bo” Pilgrim, the founder and former controlling shareholder of PPC (US$107.2 mm) and 455.3 thousand shares from Don Jackson, JBSUSA’s former CEO (US$2.7 mm) 2 PPC market value of US$4,813.8mm (as of August 15, 2013)

64.0%JBS

stake inPPC

67.3% 68.0% 75.6%

2

Proven management team with experience to integrate and extract synergies



15PAGE

Recent Events

Transaction Rationale Company Overview

Revenue Breakdown by Brand - 2012

Revenue Breakdown by Product - 2012

• Founded in 1992 and headquartered in Rio Grande da Serra,in the State of São Paulo;

• Leading company in fresh pasta category and third largest inready meals and sandwiches in Brazil;

• More than 20k active customers;

• Approximately 1,000 employees;

• Projected sales of R$400 million in 2014

Massa Leve67.7%

Third Party

Brands25.7%

Private Label6.6%

Fresh41.9%

Frozen58.1%

Rio Grande da Serra – SP (Great São Paulo Region)

Footprint

• Expansion in production capacity of convenience products(Utilization rate of 50% on average);

• Entrance into new product categories: fresh pasta, pies,cheese and garlic bread;

• Expansion of market share;

• Purchase Price of approximately R$260 million, of whichR$200 million through the transfer of shares issued by JBSand currently held in treasury (low cash output).

Source: JBS, subject to regulatory approval.

Massa Leve Transaction and Operation Overview



3Q13 Results



17PAGE

3Q13 Highlights

Net revenue of R$24.2 billion, an increase of R$4.9 billion compared to 3Q12, or 25.1%, of which 87.6% came from

Organic Growth

Consolidated EBITDA was R$1,709.7 million, an increase of 24.0% over 3Q12. EBITDA margin was 7.1%

Net income of R$219.8 million

Free cash flow of R$806.9 million

Operating cash flow of R$1,241.0 million

JBS ended the quarter with R$7.8 billion in cash and cash equivalent, corresponding to 73% of short-term debt

Leverage excluding the debt assumed in the Seara acquisition was 2.96x, as previously projected by the Company

Leverage ended the period at 4.03x, considering total debt assumed from Seara acquisition, but not including EBITDAfrom the acquisition



18PAGE

JBS Consolidated Results – 3Q13

Source: JBS

EBITDANet Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin

EBITDA Margin (%)

1.378,8

1.170,9

879,4

1.667,7 1.709,7

7,1

5,44,5

7,6 7,1

-12,0

8,0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,01400,0

1600,0

1800,0

2000,0

2200,0

3Q12 4Q12 1Q13 2Q13 3Q13

19.366,6

21.850,7

19.527,6

21.931,0

24.222,0

3Q12 4Q12 1Q13 2Q13 3Q13

12,3% 10,4%12,8% -10,6% 89,6% 2,5%-15,1% -24,9%



19PAGESource: JBS

JBS Mercosul

Performance by Business Unit

Net revenue of R$6,214.4 million, 35.2% superior to 3Q12:

Increase of 21.3% in volume of animals processed;

Increase of 31.1% in the volume of beef in domestic market and 30.1%

in the international market;

Increase of 40.5% in revenue of domestic market, boosted by the

Company’s marketing campaign.

EBITDA of R$687.5 million and EBITDA Margin of 11.1%:

JBS Brazil had EBITDA Margin of 11.7%;

Improved exports, coupled with real devaluation.

% JBS S.A.Net Sales

Net Revenue (R$ billion)

EBITDA (R$ million)

27%

EBITDA Margin (%)

4,6

5,35,0

5,4

6,2

3Q12 4Q12 1Q13 2Q13 3Q13

35.2%

665,6 664,8

561,7 543,5

687,5

14,5% 12,6%11,3% 10,0%

11.1%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0 ,0 %

2 ,0 %

4 ,0 %

6 ,0 %

8 ,0 %

10,0%

12,0%

14,0%

16,0%

18,0%

0

100

200

300

400

500

600

700

800

900

1000

3Q12 4Q12 1Q13 2Q13 3Q13



20PAGESource: JBS

JBS USA Beef (including Australia and Canada)


Net Revenue (US$ billion)

EBITDA (US$ million)

Net revenue of US$4,689.8 million, outperforming 3Q12 by 9.7%:

Increase in exported volume.

EBITDA of US$125.3 million and EBITDA Margin of 2.7%:

Transfer of cattle prices increases from the industry to products in the

domestic American market;

Improved performance in Australia in the period.

Decrease in beef imported into the US during this period, which contributed to a

better pricing of beef in domestic market.

Strong Australian exports particularly to Greater China.

USDA data shows a reduction in cow slaughter during the last weeks which is an

important indicator towards herd growth in the medium and long term.

44%

EBITDA Margin (%)

% JBS S.A.Net Sales

4,3

4,9

4,3

4,8 4,7

3Q12 4Q12 1Q13 2Q13 3Q13

9.7%

175,1

103,3

-25,1

161,7125,3

4,1%2,1% -0,6%

3,4% 2,7%

-30,0%

-28,0%

-26,0%

-24,0%

-22,0%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

-100

0

100

200

300

400

500

3Q12 4Q12 1Q13 2Q13 3Q13

9%



21PAGESource: JBS

JBS USA Pork


Net Revenue (US$ million)


Net revenue totaled US$903.3 million, an increase of 6.8% year

on year:

8.5% increase in prices in both domestic and export markets,

coupled with stable volumes.


Higher prices in the domestic market and in exports, partially

offset by an increase in raw material costs.

EBITDA Margin (%)

% JBS S.A.Net Sales

6.8%

846,1955,5

842,0 868,5 903,3

100,0

180,0

260,0

340,0

420,0

500,0

580,0

660,0

740,0

820,0

900,0

980,0

1060,0

1140,0

1220,0

1300,0

3Q12 4Q12 1Q13 2Q13 3Q13

40,4 42,7 46,8 50,7 43,8

4,8% 4,5% 5,6% 5,8% 4,8%

-23,0%

-19,0%

-15,0%

-11,0%

-7,0%

-3,0%

1,0%

5,0%

9,0%

13,0%

-0,023

99,977

199,977

3Q12 4Q12 1Q13 2Q13 3Q13

JBS USA P l (Pil i ’ P id C i )



22PAGESource: JBS

JBS USA Poultry (Pilgrim’s Pride Corporation)


Net Revenue (US$ billion)


Net revenue of US$2,142.8 million, 3.6% higher than 3Q12:

Increase of 4.4% in revenues from the United States, due to an increase

revenue per pound sold, thanks to higher market prices;

Decrease in volume sold and in the revenue from PPC Mexican

operation, due to the normalization after a market recovery followed by AI

issue.


Industry favorable scenario, which saw a decrease of 3.9% in costs at

PPC US operations, coupled with efforts to reduce inventory, in addition to a

decrease in freight and storage costs.

“The improvements in our margins is a result of the processes to transform our

commitment into operational excellence”, stated Bill Lovette, Pilgrim's CEO.

21%

EBITDA Margin (%)

% JBS S.A.Net Sales

2,1 2,2 2,02,2 2,1

3Q12 4Q12 1Q13 2Q13 3Q13

3.6%

105,667,4

117,7

265,0226,1

5,1%3,1%

5,8%

12,1%10,6%

-20,0%

-15,0%

-10,0%

-5,0%

0 ,0 %

5 ,0 %

10,0%

15,0%

20,0%

0

100

200

300

400

500

3Q12 4Q12 1Q13 2Q13 3Q13

JBS C lid t d E t Di t ib ti i 3Q13



23PAGE

Africa and Middle East14,5%

Mexico 13,7%

Greater China* 14,3%

Japan 11,6%

Russia 6,8%

E.U. 6,7%

South Korea 4,6%

Canada 4,3%

Chile 2,9%

Venezuela 2,0%

Others 18,6%

3Q12US$2,534.4

million

JBS Consolidated Exports Distribution in 3Q13

Source: JBS*Considers China, Hong Kong and Vietnam

Approximately US$3.0 billion, an increase of 16.6% in relation to 3Q12

Increase of 16.6% in 3Q13exports compared to 3Q12

Greater China* 20,4%

Mexico 15,6%

Japan 11,9%

Africa and Middle East 9,0%E.U. 5,6%

Russia 5,6%

South Korea 5,5%

Venezuela 4,7%

Canada 4,2%

Chile 3,0%

Other 14,6%

3Q13US$2,954.0

million



Debt Profile

Debt Profile



25PAGE

3.68 3.43 3.40

3.28

4.03

0

500

1.000

1.500

2.000

3Q12 4Q12 1Q13 2Q13 3Q13

Source: JBS*Leverage excluding the debt assumed in the Seara acquisition.

Debt Profile

Leverage (Net Debt/EBITDA)

.

Leverage EBITDA (R$ million)

Leverage excluding the debt assumed in the Seara

acquisition was 2.96x, as previously projected by the

Company.

Leverage ended the period at 4.03x, considering

total debt assumed from Seara acquisition, but not

including EBITDA from the acquisition.

2.96*

Debt Profile



26PAGE

Debt Profile

Breakdown by Company and Debt Types

Bonds36%

Others64%

3Q13

75%

25%

USD

R$

Breakdown by Currency & Average Cost

10.5% annum

6.2% annum

Source: JBS

At the end of the period 75% of JBS’ consolidated debt was denominated in U.S. dollars, with an average cost of 6.2% per annum.

The proportion of debt denominated in reais, 25% of consolidated debt, has an average cost of 10.5% per annum, influenced by the

recent increase in Selic.

ST / LT Debt Profile

Short term Long term

JBS S.A.

60%

Subsidiaries

40%3Q13

35%

35%

28%

30%

27%

65%

65%

72%

70%

73%

3Q13

2Q13

1Q13

4Q12

3Q12

JBS ended the quarter with R$7.8 billion in cash and cash equivalent, corresponding to 73% of short -term debt.

JBS issued a US$1.0 billion Bond with maturity in seven years and 7.75% yield per annum and paid R$558.5 million of the 2014 Bond

allocated in short-term liabilities, both of which will contribute to improve JBS debt profile in 4Q13.

Updated Indebtedness Considering Subsequent Events to the Quarter



27PAGE

Updated Indebtedness Considering Subsequent Events to the Quarter

Source: JBS

Considering the US$1.0 billion Bond issued by JBS S.A. in October in addition to the conclusion

of agreements with banks involved in the Seara acquisition and considering that these funds will

be used to pay down short-term debt, the debt profile shows relevant adjustments, such as:

Short-term debt will reduce to 21% of total debt

Cash and cash-equivalents will represent 116% of short-term debt

Average maturity will extend to 53 months

Average cost of dollar denominated debt remains at 6.2% per annum



Stock Performance and

Marketing Campaign

JBS Stock Performance



29PAGE

During the 12 months to September 30th, 2013, JBSS3 substantially outperformed the Ibovespa Index, increasing 15%,

while the index decreased 12%.

The Average Daily Traded Financial Volume in 3Q13 was R$31.4 million, an increase of 22.4% compared to the same

period of 2012.

Current JBS’ market cap is R$24.0 billion.

JBS Stock Performance

Source: Bloomberg, 100 = 09/28/2012

60%

80%

100%

120%

JBSS3 IBOV

Pilgrim’s Pride Corp (PPC) Stock Performance (Controlled by JBS)



30PAGE

During the 12 months to September 30th, 2013, PPC stocks substantially outperformed the S&P 500 Index, increasing 228%,

while the index increased 17%.

Current PPC’s market cap is US$3.7 billion.

Pilgrim s Pride Corp. (PPC) Stock Performance (Controlled by JBS)

Source: Bloomberg, 100 = 09/28/2012

60%

140%

220%

300%

380%

PPC SPX Index

Friboi Marketing Campaign in Brazil



31PAGE

bo a et g Ca pa g a

Friboi Marketing Campaign results:

102% increase in Friboi presence in the press*

Winner of “Top of Mind 2013” award from Folha de São PauloNewspaper, with 45% of brand recall.

Finalist in the “Caboré de Publicidade Brasileira” award in theadvertizing category, the Oscar of Brazilian advertising.

Considered one of the 10 advertising slogans of the year withgreatest recall by Exame magazine (Oct / 2013)

Source: JBS* Shopping Brasil Average from March to October vs Average of January and February 2013

BEEF

http://www.google.com.br/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=hpIFbpxTHnsA1M&tbnid=KYVVxIkrYpSW_M:&ved=0CAUQjRw&url=http://www1.folha.uol.com.br/topofmind/2013/10/1360876-sadia-e-friboi-ganham-em-categorias-novas-de-marcas-mais-lembradas-em-alimentacao.shtml&ei=9QWCUrjKHMedkAfki4GADg&psig=AFQjCNG6iLFTjjsR_nkqk1KGgVnmx48y3w&ust=1384339189122286

http://www.google.com.br/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=hpIFbpxTHnsA1M&tbnid=KYVVxIkrYpSW_M:&ved=0CAUQjRw&url=http://www1.folha.uol.com.br/topofmind/2013/10/1360876-sadia-e-friboi-ganham-em-categorias-novas-de-marcas-mais-lembradas-em-alimentacao.shtml&ei=9QWCUrjKHMedkAfki4GADg&psig=AFQjCNG6iLFTjjsR_nkqk1KGgVnmx48y3w&ust=1384339189122286



Mission

“

”

To be the best in what we set out to do, totally focused on our business, ensuring the best products and

services for our customers, solidity for our suppliers,

satisfactory profitability for our shareholders and the

certainty of a better future to all our employees.

6th annual latin america executive conference

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