Professional Documents
Culture Documents
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 of JBS management concerning the future of the business
and its continued access to capital to fund the Companys business plan. Such forward-looking statements
depend, substantially, on changes in market conditions, government regulations, competitive pressures, 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 change without prior notice.
JBS Global
Estimated
Revenue
2014E
US$50.0 bi
Bovines
49%
Poultry
17%
Prepared
products and
others
27%
Pork
7%
Capacity to process
Capacity to produce
units worldwide
More than 80 thousand tons of convenient and value added products per
month in the world
JBS Global
Presence in
denominated in
US$
North America
London
Ghent
Hamburg
Toronto
Chicago
Seoul
Tokyo
Shanghai
Dubai
Caracas
16% of JBS
Revenue is
Exports
~32% of JBS revenue
So Paulo
(headquarter)
denominated in
R$
Taipei
Hong Kong
Santiago
South America
~17% of JBS revenue,3
96% from Brasil
Sales office
Sales office presence
Production Platform
JBS Evolution
Net Revenue (R$ billion)
113.4
+274%
92.9
75.7
54.7
30.3
34.3
2008
2009
2010
61.8
2011
2012
2013
LTM
6.6%
6.4 %
3.8%
5.0%
6,130.3
3.7%
1,156.1
1,285.2
2008
2009
9,664.2
5.8%
4,410.3
3,497.0
3,072.0
2010
2011
2012
2013
LTM
Consolidated Results
EBITDA
Gross Profit
Adjusted EBITDA
Net Income
EPS (R$)
27.1%
24,222.0
27,222.2 26,419.1
28,968.9
30,778.6
11.8
18.1
12.9
3,128.0
13.7
13.0
3,732.0
3,421.0
14.7
5,560.0
7.1
6.9
8.4
6.6
4,255.0
2,432.7
1,709.7
1,873.5
0.38
3,617.9
0.08
0.05
0.02
140.7
70.0
4Q13
1Q14
1,749.7
0.09
1,092.9
6.2%
219.8
3Q13
4Q13
1Q14
2Q14
3Q14
3Q13
4Q13
1Q14
2Q14
3Q14
3Q13
4Q13
1Q14
2Q14
3Q14
3Q13
254.3
2Q14
3Q14
Operational Cash Generation of R$3.0 billion and Free Cash Generation (after Investments) of R$2.1 billion.
JBS ended the quarter with leverage of 2.54x compared to 3.15x in 2Q14.
7
JBS Foods recorded net revenue of R$3,376.8 million, 9.5% superior over 2Q14, and EBITDA of R$576.0 million, with an EBITDA
margin of 17.1%.
JBS Mercosul posted net revenue of R$6,470.5 million, 14.8% higher than 3Q13 and EBITDA of R$554.6 million, with EBITDA
margin of 8.6%.
JBS USA Beef posted net revenue of US$5,849.3 million, 24.7% higher than 3Q13. EBITDA was US$504.9 million, with an
EBITDA margin of 8.6%
Net Revenue of JBS USA Pork totaled US$937.8 million, 3.8% higher than 3Q13, and EBITDA of US$113.2 million, with an EBITDA
margin of 12.1%.
JBS USA Chicken (PPC) reported net revenue of US$2,268.0 million, an increase of 5.8% compared to 3Q13. EBITDA was
US$435.4 million, with a margin of 19.2%.
Canada
2.4%
Greater China
16.8%
Others
8.2%
Mexico
11.0%
South Korea
4.7%
3Q14
US$4,361.1
million
E.U.
6.5%
Russia
9.1%
Canada
4.2%
3Q13
US$2,954.0
million
South Korea
5.5%
South America
10.5%
MENA
10.5%
Greater China
20.4%
Others
14.1%
USA
9.5%
Japan
10.9%
Mexico
15.6%
E.U.
5.6%
Russia
5.6%
South America
8.2%
Japan
11.9%
MENA
9.0%
10
CAPEX
Cash Generation
In 3Q14, total capital expenditure (CAPEX) was R$878.6 million, of which approximately 20% in
acquisitions, 25% in expansions and facilities modernization and 55% in maintenance.
In 3Q14 the Company generated net cash flow from operations of R$3.0 billion and free cash flow
(after capex) of R$2.1 billion, due to the strong performance of JBS businesses units.
11
Debt Profile
4.03
3.70
3.26
5,000
3.15
2.54
4,000
3,000
2,000
1,000
0
3Q13
4Q13
1Q14
Leverage
2Q14
4Q14
Breakdown by Source
11.50% per
annum
Breakdown by Company
BNDES 0.1%
R$
20%
Commercial
Banks 59.9%
US$
80%
Capital
Markets
40.0%
Subsidiaries
31%
JBS S.A.
56%
JBS Foods
13%
5.71% per
annum
12
Debt Profile
The
2Q13
35%
65%
4Q13
29%
71%
1Q14
29%
71%
2Q14
28%
72%
3Q14
30%
70%
Short Term
Long Term
5,636
5,290
5,245
4,543
2,798
1,638
1,050
744
-1,095
Short Term*
* Net of Cash
2015
2016
2017
2018
2019
2020
2021
after 2021
13
Business Units
14
JBS Foods
15
JBS Foods
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
Operational Platform
Brazil
+55,000 employees
CE
MT
MS
1
MG
SP
In 12 states
PR
5
23 PFP units
3
1
RS SC
15 distribution centers
1
2
1
DF
1
PE
BA
RJ
15 distribution centers
R$9.2 billion
EBITDA 9M14
R$1,396 million
15.1% Margin
Notes: 1 Industrial Complex: location with one or more units of production; 2 Includes Tyson acquired units, approved in October/14; 3 Total produced volume of PFP, poultry and pork of 182 mm tons, 359 mm tons and 54 mm
tons in 3Q14, respectively. Total export volume of 331 mm tons in 3Q14
16
JBS Foods
18%
40%
11%
24%
9.5%
2.9
2.8
3.1
3.4
market;
Higher volume of fresh pork exports (+17.7%);
Increase of 6.4% in average export prices.
4Q13
1Q14
2Q14
3Q14
22.0%
13.7%
900.0
14.3%
17.1%
20.0%
18.0%
16.0%
14.0%
800.0
7.9%
12.0%
576.0
700.0
379.8
440.4
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
400.0
-4.0%
300.0
227.3
10.0%
600.0
500.0
-6.0%
-8.0%
-10.0%
200.0
-12.0%
-14.0%
100.0
-16.0%
-18.0%
0.0
-20.0%
4Q13
1Q14
2Q14
3Q14
2Q14), mainly due to lower logistics costs, reflecting the reorganization and
optimization of the companys logistics network.
17
JBS Mercosul
18
JBS Mercosul
Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business
Operational Platform
Brazil
+70,000 employees
PA
AM
AC
1
1
RO
MA
2
4
MT
6
15
3
4
3
1
9
3
2
5
4
2
2
2
1
2
43 distribution centers
06 feedlots
MG
29 tanneries
1
PR
PE
3
2
6 GO
MS
2
1
BA
1
CE
ES
RJ
2
43 distribution centers
SP
SC
RS
09 related businesses
Argentina
Leadership in beef production
Biodiesel
Can making
Collagen
JBS Carriers
Paraguay
JBS is the leader in beef processing and has around 25% of market share in
exports of Paraguay
Trading
Uruguay
Great access to export markets; the only country to export fresh beef to the US
Casings
TRP Complementary to JBS
Carriers
Recycling
R$27.8 billion
EBITDA LTM14
01 beef processing
02 tanneries
R$2,477.4 million
10.0% Margin
19
JBS Mercosul
7%
17%
44%
11%
21%
14.8%
6.3
5.6
5.7
6.3
2.8%
3Q13
4Q13
1Q14
2Q14
3Q14
26.0%
1600.0
24.0%
22.0%
20.0%
1400.0
18.0%
11.6%
1200.0
11.0%
10.4%
10.1%
8.6%
14.0%
12.0%
10.0%
1000.0
800.0
16.0%
8.0%
653.9
692.4
6.0%
596.1
634.3
4.0%
554.6
2.0%
0.0%
-2.0%
600.0
-4.0%
processed
-6.0%
-8.0%
400.0
-10.0%
-12.0%
-14.0%
200.0
-16.0%
-18.0%
0.0
-20.0%
3Q13
4Q13
1Q14
2Q14
market
3Q14
20
Beef
JBS USA
21
United States
+30,000 employees
WI
1
1
ID
28,000 in the US
NE
UT
4,000 in Canada
CO
PA
1
4
8,000 in Australia
KS
OK
AZ
11 feedlots
MI
01 tannery
TX
5,000 in the US
3
1
6,000 in Australia
06 carriers units
16 feedlots (bovine)
13 processing facilities
Australia
bovines
bovines
1
4
bovines
07 distribution centers
1
Canada
Growth of 17% in revenues from 2013 to LTM2014
07 feedlots
05 bovine and 02 lamb
01 tannery
07 distribution centers
03 case ready facilities
01 beef processing facility
01 feedlot (bovine)
01 trading
units in the US
US$20.5 billion
EBITDA LTM14
US$704.9 million
3.4% Margin
22
7%
17%
44%
11%
21%
24.7%
5.8
Increase in prices;
5.3
4.7
4.8
4.5
9.7%
Main destinations of this business unit were Japan, Greater China and
South Korea;
3Q13
4Q13
1Q14
2Q14
3Q14
24.0%
22.0%
20.0%
970.0
18.0%
16.0%
8.6%
770.0
14.0%
12.0%
10.0%
2.7%
2.4%
570.0
8.0%
-0.5%
2.0%
504.9
6.0%
4.0%
improvement in COGS;
2.0%
0.0%
-2.0%
-4.0%
370.0
-6.0%
170.0
125.3
113.9
-8.0%
-22.5
108.6
-10.0%
-12.0%
-18.0%
-30.0
-20.0%
4Q13
1Q14
-14.0%
-16.0%
3Q13
2Q14
3Q14
of this quarter.
23
Pork
JBS USA
24
United States
+6,000 employees
CO
1
1
KY
CA
NC
1
Products
Main Brands
Swift Premium
Dry Rubbed Ribs
Swift Premium
Boneless Backrib
Swift Premium
Boneless Pork Chops
US$3.8 billion
EBITDA LTM14
US$396.2 million
10.5% Margin
25
17%
44%
11%
21%
3.8%
903.3
904.9
896.9
1,028.3
937.8
-8.8%
3Q13
4Q13
1Q14
2Q14
3Q14
26.0%
370.0
24.0%
22.0%
20.0%
320.0
18.0%
9.5%
270.0
220.0
9.2%
11.1%
12.1%
16.0%
14.0%
12.0%
4.8%
10.0%
8.0%
6.0%
4.0%
170.0
86.3
120.0
70.0
43.8
82.9
113.8
113.2
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
-12.0%
-14.0%
20.0
-16.0%
-18.0%
-30.0
3Q13
4Q13
1Q14
2Q14
3Q14
-20.0%
26
Pilgrims Pride
27
United States
+39,000 employees
WV
800,000 in Mexico
TN
AR
10 distribution centers
TX
4
NC
AL
LA
VA
KY
SC
1
GA
7
Located in Mexico
FL
1
Mexico
28 feed mills
Porto Rico
01 processing facility
US$8.5 billion
EBITDA LTM14
US$1,176.3 million
13.8% Margin
28
7%
17%
44%
11%
21%
5.8%
2.0
2.0
2.3
2.2
3.7%
4Q13
1Q14
2Q14
3Q14
kilo, due to the restriction in the supply of eggs sets for incubation, as well
as in the number of chicks placed. This increase in revenue was partially
offset by a decrease in volume sold and by the devaluation of Mexican
Peso.
670.0
26.0%
19.2%
15.5%
570.0
24.0%
22.0%
20.0%
18.0%
10.6%
470.0
9.6%
435.4
10.2%
16.0%
14.0%
12.0%
338.6
370.0
8.0%
6.0%
226.1
2.0%
197.2
10.0%
4.0%
270.0
205.2
0.0%
-2.0%
million in Mexico;
-4.0%
-6.0%
170.0
-8.0%
-10.0%
-12.0%
70.0
-14.0%
-16.0%
-18.0%
-30.0
-20.0%
3Q13
4Q13
1Q14
2Q14
3Q14
29
30
Mission