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JBS S.A.
A GLOBAL
FOOD
COMPANY
Institutional PresentatioIncluding 1Q16 Result
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Global and diversified platform
Value added product portfolio with brands
Focus on operational excellence
High performance team with more than235 thousand employees
Net Revenue of R$173 billion LTM 1Q16
Second largest global food company¹
JBS AT A GLANCE
Beef 32%
Poultry
22%
Pork
16%
Prepared &Processed
30%Revenue
LTM1Q16
R$173 bi
2Source 1: Bloomberg
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A GLOBAL COMPANY An Exclusive Global Production and Sales Platform
As % of Total Revenue¹
Production footprint
Note 1. Revenues by region include domestic sales and imports.
CANADA
3
USA
52%
BRAZIL
12%
outh Am/
OTHERS
EUROPE
RUSSIA
ASIA
AFRICA &
MIDDLE EAST
OCEANIA
2%
6%
4%
MEXICO
4%
12%
4%
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STRATEGY Global and Diversified Production and Distribution Platform progressing towards value added
products with brands
Production platform
Branding
Value added products
Sales and distribution platform
\ \ \ \ \ \ \ \ \ \ \ \
+300 production units in+15 countries
+350,000 costumers andsales to +150 countries
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CONSOLIDATED RESULTS1Q16
5
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4,778 4,764
14.1%10.8%
1Q15 1Q16
33,819
43,912
1Q15 1Q16
6
1Q16 CONSOLIDATED HIGHLIGHTS
NET SALES (R$ MILLION) GROSS PROFIT (R$ MILLION)
| Expansion in net revenue of 29.8% compared to 1Q15.
| Stable gross profit over 1Q15.
Gross Margin (%)
29.8%
-0.3%
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2,758
2,137
8.2%
4.9%
1Q15 1Q16
7
1Q16 CONSOLIDATED HIGHLIGHTS
| Reduction in EBITDA impacted by Beef operations in North America.
| Loss in the quarter of R$2.7 billion, compressed by the FX variation results.
EBITDA Margin (%)
EBITDA
(R$ MILLION)NET INCOME (LOSS)
(R$ MILLION)
-22.5%
1,394
-2,741
1Q15 1Q16
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4,538
-4,447
1Q15 1Q16 -72
-5,208
1Q15 1Q16
8
| Operational cash flow of R$4.4 billion negative and free cash flow of R$5.2 billionnegative, impacted by the results with instruments related to protection against
exchange rate variation.
1Q16 CONSOLIDATED HIGHLIGHTS
OPERATIONAL CASH FLOW
(R$ MILLION)FREE CASH FLOW
(R$ MILLION)
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-7,370.9
4,780.2
-2,590.6
Resultado da variação cambial
1Q16 CONSOLIDATED HIGHLIGHTS
Results of FXvariations
Derivative Results
1Q15 4Q152Q15 3Q15Results of
the last fivequarters
1Q16
-3,757.0 245.4361.4 -6,074.7 -7,370.91,854.0
4,489.0 -1,335.8-2,005.6 9,455.7 4,780.2-5,823.1
Net Results of FX
variations andDerivatives
732.0 -1,090.4-1,644.2 3,381.1 -2,590.6-3,969.1
RECORD OF FX VARIATION RESULTS AND JBS HEDGING POLICY (R Million)
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NET DEBT
(US$ MILLION)NET DEBT
(R$ MILLION)/ LEVERAGE
Note 1. Leverage considers the proforma results of recent acquisitions (Company estimates)
1Q16 CONSOLIDATED HIGHLIGHTS
RECENT INVESTMENTS IN ACQUISITIONS AND INCREMENTAL EBITDA CONSIDERED TO CALCULATE
PROFORMA EBITDA¹
Total investment in acquisitions from 1Q15 to 1Q16: R$21 billion
Incremental EBITDA in the last 12 months: ~R$1.0 billion
10,355.7 11,224.2
10,497.9
12,046.4 13,696.8
1Q15 2Q15 3Q15 4Q15 1Q16
33,221.1 34,824.141,707.1
47,038.7 48,745.4
2.29x 2.46x 2.55x
3.18x
3.84x
1Q15 2Q15 3Q15 4Q15 1Q16
3.60x
| Cash Position 1Q16: R$15,287.2 million
LeverageAdjusted Leverage¹
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US$91%
R$9%
11
BREAKDOWN BY CURRENCY
AND COST BREAKDOWN BY COMPANY
MATURITY (R$ MILLION)
Note 1. Net of Cash
1Q16 CONSOLIDATED HIGHLIGHTS
BREAKDOWN BY SOURCE
5,5473,109 4,087 2,175
10,028
5,958
17,841
Short Term¹ 2017 2018 2019 2020 2021 After 2021
CapitalMarkets41.10%
CommercialBanks
58.87%
BNDES0.03%
JBS S.A.46%
JBS Foods9%
JBS USA45%
14.63% p.a.
5.00% p.a.
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DEBT PROFILE ST/LT SHORT TERM DEBT BREAKDOWN BY TYPE
1Q16 CONSOLIDATED HIGHLIGHTS
Bonds7%
TradeFinance
72%
WorkingCapital
13%
Others8%29%
33%
29%
32%
33%
71%
67%
71%
68%
67%
1Q15
2Q15
3Q15
4Q15
1Q16
Shor t Term Lo ng Term
The percentage of short-term debt (ST) in relation to total debt was 33% at the end of 1Q16, from which72% are trade finance related to exports from JBS Brazilian subsidiaries.
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CONSOLIDATED EXPORTSExports Breakdown in 1Q15 and 1Q16
Note 1: Considers China & Hong Kong 13
Greater China¹18.6%
Africa & Middle East14.1%
USA11.9%
Japan10.7%
South America9.6%
E.U.6.7%
South Korea
6.6%
Mexico5.1%
Russia4.0%
Canada2.5%
Others10.1%
1Q15US$ 3,547.3
million
Greater China¹20.3%
Africa & Middle East14.7%
Japan11.3%
USA10.0%
E.U.9.6%
South Korea7.8%
South America6.6%
Mexico4.6%
Russia3.4%
Canada2.8%
Others8.8%
1Q16US$ 3,258.9
million
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BUSINESS UNITS1Q16
14
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JBS Foods (R$)
JBS USA Beef (US$)
JBS USA Chicken – PPC (US$)
JBS Mercosul (R$)
JBS USA Pork (US$)
JBS Europe - Moy Park (£ - Pounds Sterling)
Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (billion) EBITDA (million) & % EBITDA
Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (billion) EBITDA (million) & % EBITDA
Net Revenue (billion) EBITDA (million) & % EBITDA Net Revenue (million) EBITDA (million) & % EBITDA
BUSINESS UNITS
3.94.5
5.0 5.4
4.3
1Q15 2Q15 3Q15 4Q15 1Q16
616.0789.4
1,040.0926.4
579.5
15.9% 17.7% 20.7% 17.3%
13.5%
1Q15 2Q15 3Q15 4Q15 1Q16
6.8
7.2 7.17.5
7.0
1Q15 2Q15 3Q15 4Q15 1Q16
376.4 376.8
640.8
921.1761.4
5.6% 5.2%
9.0%
12.3%10.9%
1Q15 2Q15 3Q15 4Q15 1Q16
5.2
5.9 5.85.3
4.6
1Q15 2Q15 3Q15 4Q15 1Q16
186.6 228.5 196.8
-25.2 -214.8
3.6% 3.8% 3.4%
-0.5%
-4.6%
1Q15 2Q15 3Q15 4Q15 1Q16
0.8 0.8 0.8
1.11.3
1Q15 2Q15 3Q15 4Q15 1Q16
93.264.6 48.4
141.3102.1
12.2%8.1% 6.2%
13.0%8.1%
1Q15 2Q15 3Q15 4Q15 1Q16
2.1 2.1 2.12.0 2.0
1Q15 2Q15 3Q15 4Q15 1Q16
363.5 425.8
274.3150.0
233.5
17.7%20.7%13.0%
7.6% 11.9%
1Q15 2Q15 3Q15 4Q15 1Q16
28.2 30.6
8.0% 8.8%
1Q15 1Q16
353.2 347.5
1Q15 1Q16
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3,874.54,286.6
1Q15 1Q16
16
JBS FOODS 1Q16
| Growth in revenue due to increase in sales prices and volumes.
| Market share evolution in all product categories assessed by Nielsen.
| Increase in production costs impacted EBITDA margin.
| New visual identity and renewal of packaging of Seara brand.
NET REVENUE
(R$ MILLION)EBITDA
(R$ MILLION)
616.0 579.5
15.9%13.5%
1Q15 1Q16
10.6% -5.9%
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376.4
761.45.6%
10.9%
1Q15 1Q16
6,782.3 6,983.4
1Q15 1Q16
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JBS MERCOSUL 1Q16
| Increase in sales prices of fresh beef in domestic and internationalmarkets.
| Reduction in the number of livestock processed.
| Increase of exports, boosted by the Chinese market, whichpresented an increase of 200% in 1Q16 compared with 1Q15.
NET REVENUE
(R$ MILLION)EBITDA
(R$ MILLION)
3.0%
102.3%
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5,190.5
4,649.6
1Q15 1Q16
18
JBS USA BEEF 1Q16
Swift
(bolinha) e
Primo
| Mark-to-market position of physical cattle purchase in the US andCanada.
| Decrease in the number of livestock processed in Australia.
| Reduction in prices of fresh beef both in domestic and internationalmarkets.
| Appreciation of AUD vs. USD.
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
-10.4% 186.6
-214.8
3.6%
-4.6%
1Q15 1Q16
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93.2 102.1
12.2%
8.1%
1Q15 1Q16
762.3
1,256.6
1Q15 1Q16
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JBS USA PORK 1Q16
| Expansion of revenue due to incorporation of Cargill Pork assets,acquired in 2015.
| Increase in exports, mainly to the Asian market.
| Integration of Cargill Pork
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
64.8%
9.5%
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363.5
233.5
17.7%
11.9%
1Q15 1Q16
2,052.91,962.9
1Q15 1Q16
20
JBS USA CHICKEN (PPC) 1Q16
| Reduction in sales prices in the US and in international market.
| Increase in sales in Mexico, boosted by the acquisition of assets inthe region.
| Conversion of one facility in the US to produce USDA-certifiedorganic chicken.
| Distribution of special dividends in the amount of US$700.0 million.
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
-4.4%-35.8%
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28.2 30.6
8.0%8.8%
1Q15 1Q16
353.2 347.5
1Q15 1Q16
21
JBS EUROPE (MOY PARK) 1Q16
| Decrease in sales prices, offset by an increase in volume sold in UKand Ireland.
| Improved operational efficiency with focus on cost control.
| Synergies capturing due to integration with JBS.
NET REVENUE
(£ MILLION)EBITDA
(£ MILLION)
-1.6%
8.2%
Mi i
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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.