jbs institutional presentation including 2015 results

8/18/2019 JBS Institutional Presentation Including 2015 Results

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JBS S.A.

A GLOBAL

FOOD

COMPANY

Institutional PresentatioIncluding 2015 Resul



Global and diversified platform

Value added product portfolio with brands

Focus on operational excellence

High performance team with more than230 thousand employees

Net Revenue of R$163 billion in 2015

Second largest global food company¹

JBS AT A GLANCE

Beef 32%

Poultry

22%

Pork

16%

Prepared &Others

30%Revenue

2015

R$163 bi

2Source 1: Bloomberg



3

A GLOBAL COMPANY An Exclusive Global Production and Sales Platform

As % of Total Revenue¹

Production footprint

Note 1. Revenues by region include domestic sales and imports.

CANADA

3

USA

48

BRAZIL

12

outh Am/

OTHERS

EUROPE

RUSSIA

ASIA

AFRICA &

MIDDLE EAST

OCEANIA

5

7

4

1

MEXICO

4

12

4



4

IPO JBS SA

Net Revenue: R$14.1 bi

2007

2008


2009

BERTIN

2010

EXPANSION IN USA AND AUSTRALIA


2013

ACQUISITIONS: TYSON IN BRAZIL

AND MEXICO

2014

CARGILL PORK

Net Revenue 2015:

R$163 bi

2015

230,000

EMPLOYEES

From a Brazilian beef company in 2007 to a Global food company

EVOLUTION

2006

19,000

EMPLOYEES




STRATEGY Global and Diversified Production and Distribution Platform progressing towards value added

products with brands

Production platform

Branding

Value added products

Sales and distribution platform

\ \ \ \ \ \ \ \ \ \ \ \

+300 production units

in+15 countries

+350,000 costumers andsales to

+150 countries



| Net Revenue CAGR : 36%

HISTORICAL PERFORMANCEContinuous growth in Net Revenue and EBITDA Margin

EBITDA Margin (%)EBITDA (R$ billion)Net Revenue (R$ billion)

| EBITDA CAGR:47%

2007 2008 2009 2010 2011 2012 2013 2014 2015

14.130.3 34.3

54.761.8

75.7

92.9

120.5

162.9

0.6 1.2 1.33.5 3.1

4.46.1

11.113.3

2007 2008 2009 2010 2011 2012 2013 2014 2015

4.3%3.8% 3.7%

6.4%

5.0%

5.8%

6.6%

9.2%8.2%



CONSOLIDATED RESULTS2015

7



2015 CONSOLIDATED HIGHLIGHTS

Gross Margin (%)

CONSOLIDATED NET SALES (R$ MILLION) CONSOLIDATED GROSS PROFIT (R$ MILLION)

| Sales growth with an expansion of R$42.4 billion (+35.2%) y-o-y.

| Increase of 21.0% in gross profit.

120,470

162,915

2014 2015

35.2%

18,673

22,590

15.5%13.9%

2014 2015

21.0%




EBITDA Margin (%)

CONSOLIDATED EBITDA (R$ MILLION) CONSOLIDATED NET INCOME (R$ MILLION)

| Increase of 20% in Consolidated EBITDA .| Incremental EBITDA of acquisitions concluded throughout the year and not included in JBS results

corresponds to R$1.5 billion¹.

| Expansion in net income of 128% over 2014.

11,090

13,300

9.2%8.2%

2014 2015

19.9%

2,036

4,640

0.71

1.60

2014 2015

EPS (R$)

127.9%

Note 1. Tyson de México, Primo Group, Moy Park, Cargill Pork, among others.



8,987

21,206

2014 2015

10

OPERATIONAL CASH FLOW

(R$ MILLION)FREE CASH FLOW EX-ACQUISITIONS

(R$ MILLION)

| Strong operational cash generation.

| Free cash flow after CAPEX and before acquisitions was R$17.0 billion.


136.0%

169.3%

6,295

16,955

2014 2015

169.3%



9,475 12,046

2014 2015

25,169

47,039

2.10x

3.18x

2014 2015

11

NET DEBT

(US$ MILLION)NET DEBT

(R$ MILLION)/ LEVERAGE

2.91x¹

Note 1. Leverage considers the proforma results of recent acquisitions (Company estimates)


RECENT ACQUISITIONS CONSIDERED TO CALCULATE PROFORMA EBITDA¹

| Tyson de Mexico

| Primo Group

| Moy Park

| Big Frango

| Anhambi

| Cargill Pork

| Total cost: ~US$5.0 billion / R$20.0 billion

| Incremental EBITDA in the year: ~R$1.5 billion



12


SHARE BUYBACK

| In 2015 JBS repurchased 96,776,800 shares in the total amount of R$1,431,717,191,of which 63,950,500 shares totaling R$902,981,060 were acquired in 4Q15.

| The Company ended the year with R$18.8 billion in cash.

| JBS debt is divided into

approximately 1/3 short term and2/3 long term.

CASH POSITION AND DEBT PROFILE

34%

29%

33%

29%

32%

66%

71%

67%

71%

68%

4Q14

1Q15

2Q15

3Q15

4Q15

Shor t T er m Long Ter m



13

BREAKDOWN BY CURRENCY

AND COST BREAKDOWN BY COMPANY

MATURITY (R$ MILLION)

Note 1. Net of Cash


BREAKDOWN BY SOURCE

2,0634,309 4,275

857

10,579

6,191

18,766

Short Term¹ 2017 2018 2019 2020 2021 After 2021

US$91%

R$9%

CapitalMarkets43.6%

CommercialBanks56.3%

BNDES0.1%

JBS S.A.45%

JBS Foods9%

JBS USAHoldings

46%

13.99% p.a.

5.24% p.a.



CONSOLIDATED EXPORTSExports Breakdown in 2014 and 2015

Note 1: Considers China & Hong Kong 13

Greater China¹18.7%

Africa & Middle East12.3%

Japan11.6%

South America11.1%USA

9.3%

Russia7.3%

E.U.

6.7%

South Korea5.3%

Mexico4.6%

Canada2.6%

Others10.6%

2014US$16,223.2

million

Greater China¹17.6%

Africa & Middle East14.3%

South America14.0%

Japan10.7%

USA10.2%

E.U.6.4%

South Korea6.2%

Mexico4.4%

Russia3.9%

Canada2.5%

Others9.7%

2015US$15,433.4

million



CONSOLIDATED RESULTS4Q15

15



34,303

47,161

4Q14 4Q15

16

4Q15 CONSOLIDATED HIGHLIGHTS

NET SALES

(R$ MILLION)

37.5%

| Expansion in net revenue of 37.5% compared to 4Q14.

| Reduction in EBITDA impacted by Beef and Chicken operations in North America.

| Loss in the quarter due to non-recurring expenses of R$ 460.6 million.

3,290 3,132

9.6%

6.6%

4Q14 4Q15

-4.8%

EBITDA Margin (%)

EBITDA

(R$ MILLION)NET INCOME (LOSS)

(R$ MILLION)

619

-275

4Q14 4Q15



BUSINESS UNITSRECENT PERFORMANCE

17



18

JBS Foods (R$)

JBS USA Beef (US$)

JBS USA Chicken – PPC (US$)

JBS Mercosul (R$)

JBS USA Pork (US$)

JBS Europe - Moy Park (£)

Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (billion) EBITDA (million) & % EBITDA

Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (billion) EBITDA (million) & % EBITDA

Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (million) EBITDA (million) & % EBITDA

BUSINESS UNITS

3.6 3.94.5

5.0 5.4

4Q14 1Q15 2Q15 3Q15 4Q15

656.1 616.0789.4

1,040.0926.4

18.0% 15.9% 17.7% 20.7% 17.3%

4Q14 1Q15 2Q15 3Q15 4Q15

5.9

5.2

5.9 5.85.3

4Q14 1Q15 2Q15 3Q15 4Q15

325.1

186.6 228.5 196.8

-25.2

5.5%3.6% 3.8% 3.4%

-0.5%

4Q14 1Q15 2Q15 3Q15 4Q15

2.1 2.1 2.1 2.12.0

4Q14 1Q15 2Q15 3Q15 4Q15

367.8 363.5 425.8

274.3

150.0

17.4%17.7%20.7%13.0%

7.6%

4Q14 1Q15 2Q15 3Q15 4Q15

1.0

0.8 0.8 0.8

1.1

4Q14 1Q15 2Q15 3Q15 4Q15

372.3 378.1

4Q14 4Q15

30.9 30.0

8.3% 7.9%

4Q14 4Q15

7.5

6.8

7.2 7.17.5

4Q14 1Q15 2Q15 3Q15 4Q15

534.1376.4 376.8

640.8

921.1

7.1%5.6% 5.2%

9.0%

12.3%

4Q14 1Q15 2Q15 3Q15 4Q15

95.7 93.264.6 48.4

141.3

9.9% 12.2%

8.1%6.2%

13.0%

4Q14 1Q15 2Q15 3Q15 4Q15



2,052.3

3,371.8

15.9% 18.0%

2014 2015

12,890.3

18,715.1

2014 2015

19

JBS FOODS 2015

| Growth in sales due to acquisitions and organic.

| Launching of more than 100 products in 2015, focused on innovationand convenience.

| Improvement in service levels.

| Solid results in 2015 with EBITDA margin expansion.

NET REVENUE

(R$ MILLION)EBITDA

(R$ MILLION)

45.2% 64.3%



26,191.7

28,622.2

2014 2015

20

JBS MERCOSUL 2015

| Revenue growth due to an increase in sales prices.

| Reduction in the number of livestock processed and in the volumesold.

| Profitability maintained, despite adverse conditions in the market.

| Opening of new export markets.

2,319.0 2,315.1

8.9% 8.1%

2014 2015

9.3%

-0.2%

NET REVENUE

(R$ MILLION)EBITDA

(R$ MILLION)



21

JBS USA BEEF 2015

Swift

(bolinha) e

Primo

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)

| Slight improvement in sales via increase in volumes.

| Maintenance of cow/heifer retention generating reduced availability

of cattle.

| Perspective of growth in the cattle herd from 2016 onwards shouldbenefit the profitability of the industry.

| Increase in sales of value added products in Australia.

21,625.2 22,134.0

2014 2015

916.1

586.7

4.2%2.7%

2014 2015

2.4%

-36.0%



22

JBS USA PORK 2015

| Increase in volume sold impacted sales prices.

| Stability of operational margins.| Relevant synergy capturing through the integration of acquired

assets.

3,827.03,430.4

2014 2015

405.6347.5

10.6% 10.1%

2014 2015

-10.4%

-14.3%

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)



8,583.48,180.1

2014 2015

23

JBS USA CHICKEN (PPC) 2015

| Lower sales prices impacted revenues.

| Diversification in the product portfolio and sales channels permitted

JBS to deliver solid and consistent results in 2015.

| Management identified US$185 million in operational improvementsfor 2016.

| Expansion of Mexican operations.

1,352.21,213.5

15.8% 14.8%

2014 2015

-10.3%

-4.7%

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)



24

JBS EUROPE (MOY PARK)

| Robust increase in volume sold.

| Appreciation of Sterling Pound in relation to Euro impacted the

results in the period.

| Investments in innovation and expansion of prepared products.

| Business model based on high quality of the products.

NET REVENUE

(£ MILLION)EBITDA

(£ MILLION)

1.6%

-3.0%



PRIORITIES IN 2016

Organic growth

Operational excellence

Reduction in working capital

Free cash flow generation

Reduction in leverage

More efficient tax structure

Return on Equity (ROE)

Focus on prepared and branded products

25

Mission



26

Mission

“ To be the best in what

we set out to do,completely focused onour business, ensuring the

best products and

services for ourcustomers, consistencyfor our suppliers,

profitability for our

shareholders and theopportunity of a betterfuture for all our team

members.

jbs institutional presentation including 2015 results

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