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JBS S.A.

A GLOBAL
FOOD
COMPANY
Institutional Presentation
Including 2015 Results

JBS AT A GLANCE
Net Revenue of R$163

billion in 2015

Second largest global food company¹
Prepared &
Others
30%

Beef
32%

Revenue
2015
R$163 bi

Pork
16%

Poultry
22%

Global and diversified platform
Value added product portfolio with brands
High performance team with more than
230 thousand employees

Focus on operational
Source 1: Bloomberg

excellence
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A GLOBAL COMPANY
An Exclusive Global Production and Sales Platform

3%

CANADA

RUSSIA

EUROPE

1%

7%

48%

12%

USA
MEXICO

ASIA

AFRICA &
MIDDLE EAST

4%

4%
BRAZIL

South Am/
OTHERS

12%

5%
As % of Total Revenue¹
Production footprint

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

OCEANIA

4%

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

CARGILL PORK
Net Revenue 2015:

IPO JBS SA

19,000
EMPLOYEES

2006
Net Revenue: R$3.9 bi

Net Revenue: R$14.1 bi

2007

BERTIN

R$163 bi

2009
2008

Net Revenue: R$30.3 bi

2013
2010

EXPANSION IN USA AND AUSTRALIA

Net Revenue: R$54.7 bi

2015
2014

ACQUISITIONS: TYSON IN BRAZIL
AND MEXICO

230,000
EMPLOYEES

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STRATEGY
Global and Diversified Production and Distribution Platform progressing towards value added
products with brands

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

Branding

Value added products

Sales and distribution platform

Production platform

+350,000 costumers and
sales to +150 countries
+300 production units in
+15 countries
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HISTORICAL PERFORMANCE
Continuous growth in Net Revenue and EBITDA Margin
| Net Revenue CAGR :

36%

| EBITDA CAGR:

47%
9.2%

5.8%
5.0%

4.3%

3.8%

162.9

6.6%

6.4%

8.2%

120.5

3.7%
92.9
75.7
61.8

54.7
34.3

30.3
14.1
2007

2007

2008

2008

3.5

1.3

1.2

0.6

2009

2009

2010

2010

Net Revenue (R$ billion)

13.3

11.1

2011

2011

EBITDA (R$ billion)

6.1

4.4

3.1
2012

2012

2013

2013

2014

2014

2015

2015

EBITDA Margin (%)

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CONSOLIDATED RESULTS
2015
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2015 CONSOLIDATED HIGHLIGHTS
CONSOLIDATED NET SALES (R$ MILLION)

CONSOLIDATED GROSS PROFIT (R$ MILLION)
Gross Margin (%)

162,915
120,470

15.5%

13.9%

22,590

35.2%

18,673
21.0%

2014

2015

2014

2015

| Sales growth with an expansion of R$42.4 billion (+35.2%) y-o-y.
| Increase of 21.0% in gross profit.

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2015 CONSOLIDATED HIGHLIGHTS
CONSOLIDATED EBITDA (R$ MILLION)

CONSOLIDATED NET INCOME (R$ MILLION)

EBITDA Margin (%)

EPS (R$)

9.2%

11,090

2014

8.2%

1.60

13,300

4,640
0.71

127.9%

19.9%

2,036

2015

2014

2015

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

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2015 CONSOLIDATED HIGHLIGHTS
OPERATIONAL CASH FLOW (R$ MILLION)

FREE CASH FLOW EX-ACQUISITIONS (R$ MILLION)

21,206
16,955
136.0%

169.3%

8,987

6,295
169.3%

2014

2015

2014

2015

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

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2015 CONSOLIDATED HIGHLIGHTS
NET DEBT (US$ MILLION)

NET DEBT (R$ MILLION) / LEVERAGE
3.18x
2.10x

9,475

2014

2.91x¹

47,039

12,046
25,169

2015

2014

2015

RECENT ACQUISITIONS CONSIDERED TO CALCULATE PROFORMA EBITDA¹

| Tyson de Mexico

| Big Frango

| Primo Group

| Anhambi

| Moy Park

| Cargill Pork

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

| Total cost: ~US$5.0 billion / R$20.0 billion
| Incremental EBITDA in the year: ~R$1.5 billion

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2015 CONSOLIDATED HIGHLIGHTS
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.

CASH POSITION AND DEBT PROFILE

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

4Q14

| JBS debt is divided into
approximately 1/3 short term and
2/3 long term.

2Q15

1Q15

3Q15
4Q15

34%

66%

29%

71%

33%

67%

29%

71%

32%

68%
Short Term

Long Term

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2015 CONSOLIDATED HIGHLIGHTS
BREAKDOWN BY CURRENCY
AND COST

BREAKDOWN BY SOURCE

BREAKDOWN BY COMPANY

13.99% p.a.
R$
9%

Commercial
Banks
Capital 56.3%
Markets
43.6%

US$
91%

JBS USA
Holdings
46%

BNDES
0.1%

5.24% p.a.

JBS S.A.
45%

JBS Foods
9%

MATURITY (R$ MILLION)
18,766
10,579

2,063
Short Term¹
Note 1. Net of Cash

4,309

6,191

4,275
857

2017

2018

2019

2020

2021

After 2021
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CONSOLIDATED EXPORTS
Exports Breakdown in 2014 and 2015
Canada
2.5%
Russia
3.9%
Mexico
4.4%

Greater China¹
18.7%

Others
10.6%

Mexico
4.6%

2014
US$16,223.2
million

South Korea
5.3%
E.U.
6.7%

2015
US$15,433.4
million

South Korea
6.2%

Canada
2.6%

Africa & Middle East
12.3%

Greater China¹
17.6%

Others
9.7%

E.U.
6.4%
USA
10.2%

Africa & Middle East
14.3%

South America
14.0%
Japan
10.7%

Japan
11.6%

Russia
7.3%

USA
9.3%

Note 1: Considers China & Hong Kong

South America
11.1%

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CONSOLIDATED RESULTS
4Q15
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4Q15 CONSOLIDATED HIGHLIGHTS
NET SALES (R$ MILLION)

NET INCOME (LOSS) (R$ MILLION)

EBITDA (R$ MILLION)
47,161

EBITDA Margin (%)

9.6%

34,303

6.6%

37.5%

3,290

3,132

619

-4.8%

-275
4Q14

4Q15

4Q14

4Q15

4Q14

4Q15

| 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.
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BUSINESS UNITS
RECENT PERFORMANCE
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BUSINESS UNITS
JBS Foods (R$)

Net Revenue (billion)

3.6

3.9

4.5

5.0

JBS Mercosul (R$)

EBITDA (million) & % EBITDA
5.4

18.0% 15.9% 17.7% 20.7% 17.3%

1,040.0
656.1 616.0

4Q14 1Q15 2Q15 3Q15 4Q15

789.4

Net Revenue (billion)

12.3%

7.5

7.2
6.8

926.4

7.1

5.9

5.9

4Q14 1Q15 2Q15 3Q15 4Q15

5.2

5.3

325.1

9.0%

7.1%

5.6% 5.2%
921.1

4Q14 1Q15 2Q15 3Q15 4Q15

640.8
376.4 376.8

4Q14 1Q15 2Q15 3Q15 4Q15

JBS USA Pork (US$)

EBITDA (million) & % EBITDA
5.5%

5.8

7.5

534.1

JBS USA Beef (US$)

Net Revenue (billion)

EBITDA (million) & % EBITDA

3.6% 3.8% 3.4%

Net Revenue (billion)
1.1

1.0

-0.5%

0.8

0.8

EBITDA (million) & % EBITDA
9.9%

8.1%

0.8

186.6 228.5 196.8

95.7

93.2

-25.2
4Q14 1Q15 2Q15 3Q15 4Q15

4Q14 1Q15 2Q15 3Q15 4Q15

4Q14 1Q15 2Q15 3Q15 4Q15

JBS USA Chicken – PPC (US$)

Net Revenue (billion)
2.1

2.1

2.1

2.1

17.4%17.7% 20.7%

2.0

4Q14 1Q15 2Q15 3Q15 4Q15

6.2%
141.3

64.6

48.4

4Q14 1Q15 2Q15 3Q15 4Q15

JBS Europe - Moy Park (£)

EBITDA (million) & % EBITDA

367.8 363.5

13.0%

12.2%

13.0%

7.6%

Net Revenue (million)
372.3

378.1

425.8
274.3

EBITDA (million) & % EBITDA
8.3%

7.9%

30.9

30.0

4Q14

4Q15

150.0

4Q14 1Q15 2Q15 3Q15 4Q15

4Q14

4Q15

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JBS FOODS 2015
NET REVENUE (R$ MILLION)

EBITDA (R$ MILLION)
18.0%

15.9%

18,715.1
12,890.3

3,371.8
2,052.3
64.3%

45.2%

2014

2015

2014

2015

| Growth in sales due to acquisitions and organic.
| Launching of more than 100 products in 2015, focused on innovation
and convenience.
| Improvement in service levels.
| Solid results in 2015 with EBITDA margin expansion.
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JBS MERCOSUL 2015
NET REVENUE (R$ MILLION)
28,622.2
26,191.7
9.3%

EBITDA (R$ MILLION)
8.9%

8.1%

2,319.0

2,315.1
-0.2%

2014

2015

2014

2015

| Revenue growth due to an increase in sales prices.
| Reduction in the number of livestock processed and in the volume
sold.
| Profitability maintained, despite adverse conditions in the market.
| Opening of new export markets.
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JBS USA BEEF 2015
NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)

22,134.0

21,625.2

4.2%
2.4%

Swift
(bolinha) e
Primo

2.7%

916.1
-36.0%

2014

2015

2014

586.7

2015

| 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 should
benefit the profitability of the industry.
| Increase in sales of value added products in Australia.
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JBS USA PORK 2015
NET REVENUE (US$ MILLION)
3,827.0

3,430.4

EBITDA (US$ MILLION)
10.6%

10.1%

405.6

-10.4%

347.5
-14.3%

2014

2015

2014

2015

| Increase in volume sold impacted sales prices.
| Stability of operational margins.
| Relevant synergy capturing through the integration of acquired
assets.

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JBS USA CHICKEN (PPC) 2015
NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)
15.8%

8,583.4

14.8%

8,180.1

1,352.2

1,213.5

-4.7%

-10.3%

2014

2015

2014

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 improvements
for 2016.
| Expansion of Mexican operations.
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JBS EUROPE (MOY PARK)
NET REVENUE (£ MILLION)

EBITDA (£ MILLION)

1.6%
-3.0%

| 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.
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PRIORITIES IN 2016








Organic growth
Operational excellence
Focus on prepared and branded products
Reduction in working capital

Free cash flow generation
Reduction in leverage
More efficient tax structure
Return on Equity (ROE)

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Mission
“To be the best in what
we set out to do,
completely focused on
our business, ensuring the
best products and
services for our
customers, consistency
for our suppliers,
profitability for our
shareholders and the
opportunity of a better
future for all our team
members.

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