jbs institutional presentation including 1q16 results

8/16/2019 JBS Institutional Presentation including 1Q16 Results

1/22

JBS S.A.

A GLOBAL

FOOD

COMPANY

Institutional PresentatioIncluding 1Q16 Result


2/22

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


3/22

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

52%

BRAZIL

12%

outh Am/

OTHERS

EUROPE

RUSSIA

ASIA

AFRICA &

MIDDLE EAST

OCEANIA

2%

6%

4%

MEXICO

4%

12%

4%


4/22

4

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


5/22

CONSOLIDATED RESULTS1Q16

5


6/22

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%


7/22

2,758

2,137

8.2%

4.9%

1Q15 1Q16

7


| 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


8/22

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.


OPERATIONAL CASH FLOW

(R$ MILLION)FREE CASH FLOW

(R$ MILLION)


9/22

-7,370.9

4,780.2

-2,590.6

Resultado da variação cambial


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)

6


10/2210

NET DEBT

(US$ MILLION)NET DEBT

(R$ MILLION)/ LEVERAGE

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


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


11/22

US$91%

R$9%

11

BREAKDOWN BY CURRENCY

AND COST BREAKDOWN BY COMPANY

MATURITY (R$ MILLION)

Note 1. Net of Cash


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.


12/22

12

DEBT PROFILE ST/LT SHORT TERM DEBT BREAKDOWN BY TYPE


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.


13/22

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


14/22

BUSINESS UNITS1Q16

14


15/22

15

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


16/22

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%


17/22

376.4

761.45.6%

10.9%

1Q15 1Q16

6,782.3 6,983.4

1Q15 1Q16

17

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%


18/22

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


19/22

93.2 102.1

12.2%

8.1%

1Q15 1Q16

762.3

1,256.6

1Q15 1Q16

19

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%


20/22

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%


21/22

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


22/22

22

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 1q16 results

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