jbs institutional presentation including 4q14 and 2014 results
TRANSCRIPT
JBS Institutional Presentation Including 4Q14 and 2014 Results
2
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 Company’s 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.
Disclaimer
3
JBS Global
3
Net Revenue of R$120.50 billion in 2014
Bovines 49%
Poultry 17%
Pork 7%
Prepared products and
others 27%
Revenue
2014
R$120.5 bi
Second largest global food company according to Bloomberg ranking¹
Capacity to process 100,000 bovines per day in 73 units in seven countries
Capacity to process 72,000 hogs per day in 11 units in Brazil and the United
States
Capacity to process more than 13 million birds per day in 58 units in the Americas
Capacity to produce more than 100 thousand hides per day in 31
units worldwide
More than 215 thousand employees around the world
Note 1. Based on 2013 Net Sales
4
Breakdown of JBS Net Revenue and EBITDA
Revenue in US$ 83%
Revenue in R$
17%
EBITDA in US$ 79%
EBITDA in R$
21%
Breakdown of JBS Net Revenue
Breakdown of JBS EBITDA
JBS USA 66%
JBS Mercosul
23%
JBS Foods 11%
US$ 51%
R$ 49%
US$ 47%
R$ 53% US$
100%
JBS USA 59%
JBS Mercosul
22%
JBS Foods 19%
US$ 51%
R$ 49%
US$ 47%
R$ 53%
US$
100%
With 83% of net revenue and 79% of EBITDA linked to US dollars, the
strengthening of this currency is highly positive for the performance of JBS.
5
JBS Evolution
Net Revenue (R$ billion)
EBITDA (R$ million)
30.3 34.3
54.7 61.8
75.7
92.9
120.5
2008 2009 2010 2011 2012 2013 2014
1,156.1 1,285.2
3,497.0 3,072.0
4,410.3
6,130.3
11,090.0
3.8% 3.7%
6,4 % 5.0%
5.8% 6.6%
9.2%
2008 2009 2010 2011 2012 2013 2014
EBITDA margin (%)
+297%
6
Operational excellence
Reduction in working capital cycle
Free cash flow generation
Continuous deleveraging
Debt cost reduction
Improvement of JBS corporate ratings
Reduction of effective tax rate
Net income and earnings per share
Return on Equity (ROE)
Focus on organic growth and not on acquisitions
JBS 10 Priorities in 2015
7
Market Analysis
8
World’s Food* Surpluses and Deficits
Cereals, dairy, fish, meat, oilseeds and sugar.
Source: OECD-FAO Agricultural Outlook 2014-2023
Net intra-regional trade, million tonnes
-300,000
-250,000
-200,000
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
North America Latin America
and Caribbean
Oceania
Developed Europe
Other
Developed Africa Asia
9
USA 17%
Brazil 13%
E.U. 11%
China 10% Argentina
4%
Others 45%
USA 16%
Brazil 15%
E.U. 11%
China 10%
India* 5%
Others 43%
Global Beef Consumption
Sector Overview: Beef
Global Beef Production
Source: USDA
*Buffaloes
Total 2013: 67.7 mm tons cwe
2013
Beef Trade Commerce in 2013 (mm tons cwe)
# Largest exporters Largest importers
1 Brazil 1,849 20% Russia 1,031 14%
2 India* 1,765 19% USA 1,021 14%
3 Australia 1,593 17% Japan 760 10%
4 USA 1,172 13% Hong Kong 473 6%
5 New Zealand 529 6% China 412 6%
Total: 67.2 mm tons cwe
Brazil and the U.S. are responsible for 31% of the world’s beef production
Per Capita Consumption
Global Beef Production Forecasts
(mm tons cwe)
42
33
30
25
24
3.4
Argentina
Uruguai
Brasil
EUA
Austrália
China
(kg/capita) 2013
Global avg.: 6.6 Kg
2013
Both Brazilian and American beef production should increase approximately
1mm tons until 2023, reaching 10.3 mm and 11.3 mm tons, respectively
JBS is present in the main beef exporting countries
Source: FAO
*cwe = carcass weight equivalent
Source: FAO
*Buffaloes
Source: FAO
67.2 67.4 68.2 68.7 69.8 71.0 72.1 72.9 73.9 74.8 75.6
0.0
25.0
50.0
75.0
100.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
CAGR (%)
2013 - 2023
Brazil – 1.4%
USA – 0.1%
World – 1.2%
10
107.4 110.0 112.6 115.3 117.8 120.5 123.3 126.3 129.0 131.8 134.5
0.0
30.0
60.0
90.0
120.0
150.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
50
48
45
34
32
10
Global Poultry Production Forecasts
Sector Overview: Poultry
USA 18%
China 16%
Brazil 12% E.U.
12%
Russia 4%
Mexico 3%
Others 35%
Total 2013A: 107.4 mm tons rtc
Global avg:12,8Kg
(mm tons rtc)
Poultry Trade Commerce in 2013 (mm tons rtc)
China 17%
USA 15%
E.U. 11%
Brazil 9% Russia
4%
Mexico 3%
India 2%
Others 39%
Total 2013: 107.4 mm tons rtc
Poultry production should increase around 25% in the period from 2013 to 2023, reaching 134.5 mm tons
Brazil and the U.S. are responsible for 30% of the world’s beef production
# Largest exporters Largest importers
1 Brazil 3,755 34% Japan 850 8%
2 USA 3,692 33% Mexico 835 8%
3 E. U. 1,235 11% Saudi Arabia 810 7%
4 Thailand 540 5% E.U. 760 5%
5 China 415 4% Russia 554 4%
China should
reach 14kg/capita
by 2023
2013
Global Poultry Production
Global Poultry Consumption Per Capita Consumption
(kg/capita) 2013
JBS is present in the main poultry exporting countries
Source: FAO Source: FAO
Source: USDA
Source: FAO
*rtc = ready to cook
CAGR (%)
2013 - 2023
Brazil – 1.7%
USA – 2.2%
World – 2.3%
11
China 48%
E.U. 18%
USA 7%
Russia 3%
Vietnan 3%
Brazil 3%
Others 18%
(mm tons cwe)
Global Pork Production Forecasts
Global Pork Consumption
Sector Overview: Pork
China 48%
E.U. 19%
USA 9%
Brazil 3%
Vietnan 3%
Others 18%
Total 2013A: 115.2 mm tons cwe
Global Pork Production
Total 2013A: 115.4 mm tons cwe
Pork production should increase 12% in the period from 2013 to 2023, reaching 129.4 mm tons in 2023
Brazil and the US are two of the world’s largest pork producers
Per Capita Consumption
61
40
27
22
14
(kg / capita) 2013
Global avg. 2013A: 14.9Kg
Pork Trade Commerce in 2013 (mm tons cwe)
# Largest exporters Largest importers
1 USA 2,292 32% Japan 1,240 18%
2 E.U. 2,204 31% Russia 900 13%
3 Canada 1,245 18% Mexico 785 11%
4 Brazil 600 9% China 750 11%
5 China 250 4% Hong Kong 400 6%
2013
115.4 116.9 118.8 120.3 121.4 122.7 123.8 125.2 126.7 128.1 129.4
0.0
30.0
60.0
90.0
120.0
150.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
JBS is present in the main pork exporting countries
Source: FAO Source: FAO
Source: USDA
Source: FAO
*cwe = carcass weight equivalent
CAGR (%)
2013 - 2023
Brazil – 1.6%
USA – 1.0%
World – 1.2%
12
Consolidated Results
13
Net Income of R$2.04 billion, growth of R$1.1 billion, or 119.6% higher than 2013, which
corresponds to an earnings per thousand shares of R$706.5.
In 4Q14, net income was R$618.8 million, an improvement of R$478.1 million, or 339.7%
greater than 4Q13, equivalent to an earnings per thousand shares of R$214.1.
141
618.849.0
214.1
4Q13 4Q14
1,8743,290
6.9%
9.6%
4Q13 4Q14
3,7325,436
13.7%
15.8%
4Q13 4Q14
27,22234,303
4Q13 4Q14
2014 and 4Q14 Highlights - Consolidated
92,903
120,470
2013 2014
11,847
18,67312.8%
15.5%
2013 2014
6,130
11,0906.6%
9.2%
2013 2014
927
2,036323.3
706.5
2013 2014
26.0%
29.7%
Net Revenue of R$120.5 billion in 2014, an increase of R$27.6 billion, or 29.7% higher
than 2013.
In 4Q14, net revenue was R$34.3 billion, expansion of R$7.1 billion, or 26.0% higher
than 4Q13.
Earnings per Thousand Shares
Gross profit of R$18.7 billion in 2014, growth of R$6.9 billion, an increase of 57.9%
in 2013.
In 4Q14, gross profit was R$5.5 billion, an improvement of R$1.7 billion, 45.7%
higher than 4Q13.
EBITDA of R$11.1 billion in 2014, expansion of R$4.96 billion, or 80.9% greater than
2013.
In 4Q14, EBITDA was R$3.3 billion, an increase of R$1.4 billion, or 75.6% greater
than 4Q13.
75.6% 80.9%
45.7%
57.6%
339.7% 119.6%
Gross Margin (%)
EBITDA Margin (%)
Consolidated Net Sales (R$ Million) Consolidated Gross profit (R$ Million)
Consolidated EBITDA (R$ Million) Consolidated Net Income (R$ Million)
14
10,46411,221
10,5469,475
1Q14 2Q14 3Q14 4Q14
-230
3,665
4Q13 4Q14
355
5,320
4Q13 4Q14
2014 and 4Q14 Financial Highlights - Consolidated
Net Operating Cash Generation (R$ Million) Free Cash Generation (R$ Million)
Net Debt (R$ Million) / Leverage Net Debt (US$ Million)
635
4,710
2013 2014
2,541
8,987
2013 2014
Net operating cash generation of R$9.0 billion in 2014, expansion of R$6.4 billion, or
253.7% higher than 2013.
In 4Q14, net operating cash generation was R$5.3 billion, an increase of R$5.0
billion, or 1,399.5% greater than 4Q13.
Free cash generation of R$4.7 billion in 2014, growth of R$4.1 billion, or 641.6%
superior than 2013.
In 4Q14, free cash generation was R$3.7 billion, an improvement of R$3.9 billion
compared to 4Q13.
Net debt was R$25.2 billion at the end of 2014.
Leverage ended 2014 at 2.1x, a substantial reduction in comparison with 2013, when
leverage was 3.7x.
Reduction of net debt in US dollars of US$1.0 billion compared to 3Q14.
23,748 25,169
3.7x
2.1x
2013 2014
Net debt in US dollars converted at the exchange rate at the end of each period.
1399.5%
253.7%
641.6%
15
JBS Consolidated Exports Breakdown in 2014 and 2013
Note 1. China and Hong Kong
South America 15.5%
Mexico 14.2%
Africa and Middle East 11.4%
Japan 10.1% Greater China¹ 9.8%
USA 6.5%
E.U. 6.0%
Russia 5.8%
South Korea 4.9%
Canada 3.3%
Others 12.7%
2013
US$11,760.6
million
South America 15.9%
Africa and Middle East 12.3%
Greater China¹ 11.8%
Mexico 11.3% Japan
10.8%
USA 8.6%
Russia 6.8%
E.U. 6.4%
South Korea 5.0%
Canada 2.4%
Others 8.7%
2014
US$16,223.2
million
Growth of 38% in 2014 exports
compared to 2013
16
Capex, Cash Generation, Working Capital and Debt
Profile
17
Cash Generation
CAPEX
Capex, Cash Generation and Working Capital
In 4Q14, the total CAPEX of JBS was R$1,654.4 million, from which:
56% were related to acquisitions and the remaining balance corresponds to expenditures with expansions,
modernization and maintenance of JBS’ facilities.
In 2014, CAPEX was R$4,276.8 million.
In 4Q14 the Company generated net cash from operations of R$5.32 billion and free cash of R$3.66 billion.
In 2014, JBS generated R$9.0 billion in net cash from operations and R$4.7 billion in free cash.
Working Capital¹
Working Capital has been closely monitored:
12.1% 12.0%
10.9% 10.9% 10.7%
9.2%
0
4,000
8,000
12,000
16,000
20,000
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Note1. Working Capital calculated as the total current assets excluding cash and cash equivalents, less total current liabilities excluding short term loans and financing and declared dividends
To calculate LTM Net Revenues of JBS USA, the Company used the dollar rates of the last day of the period (closing rate). This criteria is intended to equalize the WC (Balance Sheet figures) and Net Revenues at the same exchange rate.
18
Debt Profile
JBS ended 4Q14 with leverage of 2.1x,
compared to 2.5x in 3Q14.
Net debt in US dollars reduced US$1.0
billion in comparison with 3Q14.
Breakdown by Currency and Costs Breakdown by Company
Leverage (Net Debt/EBITDA LTM)
US$ 80%
R$ 20%
11.57% per annum
5.49% per annum
Breakdown by Source
Capital markets 40.0%
Commercial banks 59.9%
BNDES 0.1%
JBS S.A. 58%
JBS Foods 14%
Subsidiaries 28%
Net Debt (US$ Milhões)
Net debt in US dollars converted at the exchange
rate at the end of the period.
3.7x
3.3x 3.2x
2.5x
2.1x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
4Q13 1Q14 2Q14 3Q14 4Q14
EBITDA (R$ million) Leverage
10.46411.221
10.5469.475
1Q14 2Q14 3Q14 4Q14
19
29%
29%
28%
30%
34%
71%
71%
72%
70%
66%
4Q13
1Q14
2Q14
3Q14
4Q14
Short Term Long Term
-1,223
4,625
1,771
4,773
338
5,747
3,038
6,100
Short term* 2016 2017 2018 2019 2020 2021 after 2021
The Company ended the quarter with R$14,910.4 million in
cash, equivalent to approximately 109% of its short-term
debt.
JBS USA has US$1.43 billion fully available under revolving
credit facilities which, if added to the current cash position,
represents 119% of short term debt.
The percentage of short term debt (ST) in relation to total debt
was 34% in 3Q14.
* Net of Cash
Debt Profile and Maturity
Debt Profile
Maturity (R$ million)
20
JBS Foods
21
EBITDA 2014 Net Revenue 2014 R$12.8 billion
JBS Foods
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
+66,000 employees2
R$2,052.4 million
15.9% Margin
Brazil
30 slaughterhouses and deboning units2
08 slaughterhouses and deboning units
23 PFP units
19 distribution centers
1
MT BA
MG
RJ
PR
RS
MS
DF
5
7
2
SC 8 3 7
SP 4 3
1
2
6 1 1
3
1
1
2 1
2
2 1
1
1
CE 1
PE 1
1
2
3 2
3
Notes. Industrial Complex: location with one or more units of production; 2 Includes Big Frango acquired units, approved in January/15 and incorporated in 1Q15; 3 Total produced volume of PFP, poultry and pork of 186 mm tons,
391 mm tons and 47 mm tons in 4Q14, respectively. Total export volume of 315 mm tons in 4Q14.
.
1
1
AM
1
2nd largest producer and exporter of poultry and pork in Brazil³
Large production platform, with 61 production units1,2 and nearly 66,700employees
National distribution platform serving ~79,000 points of sale
Strong international presence, exporting to over 100 countries
Complete product portfolio with leading and well-known brands
Uniquely positioned as the natural consolidator of the sector in Brazil, allowing accelerated growth
5.6 million birds per day
21,200 hogs per day
80 thousand tons per month
Operational Platform
19 distribution centers
Production units located in the south,
southeast and mid-west regions
Production units located in the south
and mid-west regions
Production units located in the south,
southeast, northeast and mid-west
regions
In 13 states
22
JBS Foods
Results from Main Initiatives
420
710
123
216
90
190
14.4%
22.8%
8.4%
Actual Price Increase Mix Optimization Average Price Increase
Average FPP Price Increase Since Seara Acquisition (%)
Pricing and
Sales
Finance /
Administrative
• Optimization of administrative offices
• Redesign and standardization of processes
• Loss reductions
• Shift from third-party to in-house IT services
Logistics /
Distribution
• Reduction of sea freight from scale gains with JBS
• Reduction of product losses from shelf life expiration
• Increase in service level
• Revision of logistics network
R&D • Product formula standardization
• Packaging optimization
Industrial
• Productivity improvements
• Increase in operational yields
• Automation of processes
• Foot-print review
• Simplification of "Go to Market“ strategy
• Redefinition of brand strategy
• Superior product quality
• Price repositioning
• Increase sales force productivity
Livestock
• Review of nutritional standards
• Use of alternative ingredients
• Review of ingredients nutritional standards
• Focus change to guarantee animal health
JBS Foods identified target potential gains of R$1.2 billion since acquiring Seara in 3Q13, which have been fully
realized in 2014, R$529 million ahead of schedule for the period
Actual (R$ mm) Target vs. Actual 14 Identified Potential Gains (R$ mln)
1,219
1,749
529
Potential Gains 2014 Actual Gains 2014 Additional Gains 2014
+43%
Source: JBS Foods
Note: 1. Average FPP (Further Processed Products) price increase since the acquisition of Seara (Sep/2013)
23
JBS Foods
Products Brands
Pizzas & Pastas
Margarine
Frozen
Chilled
JBS Foods’ Market Position in Main Product Categories
JBS Foods has streamlined and repositioned its brand portfolio and increased the efficiency of its commercial and
marketing strategy, with a high brand recognition among consumers
18.4% 2nd
11.8% 2nd
6.9% 3rd
16.3% 2nd
Ranking Old Mkt Share1
31.0%¹
14.6%¹
7.6%
24.6%¹
Mkt Share Novo
+8.3 pp
+2.8 pp
+12.6 pp
+0.7 pp
Dec/Jan - 14
Dec/Jan - 14
Jan/Feb - 14
Jan/Feb - 14
Dec/Jan - 15
Nov/Dec - 14
Nov/Dec - 14
Dec/Jan - 15
Source: Nielsen
1 Includes Excelsior in Nov/Dec-14 and Macedo for Frozen in Dec/Jan-15
24
2,891.6 2,780.03,084.5
3,376.83,649.0
4Q13 1Q14 2Q14 3Q14 4Q14
JBS Foods
Net Revenue (R$ million)
EBITDA (R$ million)
EBITDA margin (%)
11%
22%
44%
7%
16%
% NR JBS S.A.
Net revenue of R$3,649.0 million in 4Q14, an increase of 8.1%
compared to 3Q14
Increase in sales volumes in the three product categories in the domestic
market. The main highlights were fresh chicken (+50.8% vs 3Q14).
Increase of 4.9% in fresh pork prices in the domestic market.
Higher volume (+4.8%) and higher prices (+6.7%) in exports of
prepared/pre cooked products.
EBITDA totaled R$656.1 million, which represents an increase of
13.9% over 3Q14. EBITDA margin was 18.0%
Decrease in raw material costs.
Seasonal increase in demand in chicken products due to the festive period.
Improvement in chicken prices in the international market, which
corresponds to 83% of sales in exports.
26.2%
8.1%
227.3379.8 440.4
576.0656.17.9%
13.7% 14.3%17.1% 18.0%
4Q13 1Q14 2Q14 3Q14 4Q14
25
JBS Mercosul
26
EBITDA 2014 Net Revenue 2014 R$26.2 billion
~ 55,000 bovines per day
90,000 hides per day
44 distribution centers
09 related businesses
92% in Brazil, 3% in Argentina, 3% in
Paraguay and 2% in Uruguay
Facilities in Brazil, Argentina, Uruguay,
China, Vietnam and Mexico
11 central and 32 regional in Brazil
and 01 in Argentina
Biodiesel
Can making
Collagen
JBS Carriers
Trading
Hygiene and Clean
Casings
TRP – Complementary to JBS
Carriers
Recycling
JBS Mercosul
Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business
Operational Platform +70,000 employees
R$2,319.0 million
8.9% Margin
Argentina
Leadership in beef production
05 beef processing facilities
01 distribution center
01 tannery
Paraguay JBS is the leader in beef processing and has around 25% of market share in
exports of Paraguay
02 beef processing facility
01 tannery
Uruguay
Great access to export markets; the only country to export fresh beef to the US
01 beef processing
02 tanneries
Brazil
47 beef processing facilities
06 feedlots
29 tanneries
43 distribution centers
1
15
9
3
1
1
1 6
4
3
4
4
2 1
1
3
2
1
2
6
2
4
1
8
5
3
2
2
1
1
1
2
1
1
1 2 3 6 3
PA
AM
AC RO MT
MA
PE BA
MG
ES
RJ
SP
SC
PR
RS
MS
1
GO
1 CE
27
6,312.0 5,725.3 6,291.4 6,470.57,545.7
4Q13 1Q14 2Q14 3Q14 4Q14
JBS Mercosul
Net Revenue (R$ million)
EBITDA (R$ million)
% NR JBS S.A.
Net revenue of R$7,545.7 million in 4Q14, 19.5% higher than 4Q13:
Increase in fresh beef prices in the domestic and international markets.
Paraguay and Uruguay operations maintained the good performance of
previous quarters.
In Argentina, JBS continues focused on rationalizing its product portfolio,
reducing costs and increasing the value added products portfolio.
EBITDA totaled R$534.1 million for the quarter. EBITDA margin was
7.1%.
Increase in cattle prices in the period, partially compensated by an increase
in fresh beef prices in the domestic and international markets.
JBS maintained its strategy of investing in brands and in product innovation
in the domestic market.
The launching of convenience beef products reflected in an increase in the
average sales price in this category (prepared products) of 16.1% in the
domestic market.
16.6%
19.5%
11%
22%
44%
7%
16%
EBITDA margin (%)
692.4 596.1 634.3 554.6 534.1
11.0% 10.4% 10.1% 8.6% 7.1%
4Q13 1Q14 2Q14 3Q14 4Q14
28
Beef JBS USA
29
Australia
Leadership in beef exports
Leadership in the processing of lamb (22,000 lamb per day)
#1st in the Food Industry Ranking¹
Growth of 17% in revenues from 2013 to 2014
01 beef processing facility
01 feedlot (bovine)
01 trading
13 processing facilities
08 bovine and 05 lamb
07 feedlots
05 bovine and 02 lamb
01 tannery
07 distribution centers
03 case ready facilities
~40,000 bovines per day
11,000 hides per day
07 distribution centers
09 beef processing facilities
11 feedlots
01 tannery
06 carriers units
28,000 in the US
4,000 in Canada
8,000 in Australia
5,000 in the US
6,000 in Australia
07 DCs in Australia and 06 carriers
units in the US
JBS USA Beef
Beef production in the United States, Canada and Australia
Operational Platform United States
Canada
Growth of 49% in revenues from 2013 to 2014
16 feedlots (bovine)
11 in the US/ Capacity of 1.0 million
bovines
01 in Canada / Capacity of 70,000
bovines
05 in Australia / Capacity of 152,000
bovines
Note 1. Source: Food&Drink Business Magazine
+30,000 employees
EBITDA 2014 Net Revenue 2014 US$21.6 billion US$916.1 million
4.2% Margin
1
NE 2
1 CO 1
4
1
UT
1
1
TX
1
3
1
2
WI 1
1 MI
1
PA 1
AZ
1
ID 1
KS 1
OK 1
4
1
1
2
2
2
1
1
1
4
30
4,809.9 4,520.7 5,331.4 5,849.3 5,923.7
4Q13 1Q14 2Q14 3Q14 4Q14
JBS USA Beef (including Australia and Canada)
Net Revenue (US$ million)
EBITDA (US$ million)
% NR JBS S.A.
Net revenue in 4Q14 was US$5,923.7 million, an increase of 23.2%
compared to 4Q13.
Increase in prices of 26.4% and 25.8% in the domestic and international
markets, respectively, partially compensated by a decrease in volume in
both markets.
Compared with 3Q14, net revenue was increased 1.3%.
EBITDA was US$325.1 million, with a margin of 5.5%:
Strategy regarding the purchase of cattle, which permitted the improvement in
COGS.
Better beef prices in some markets that JBS operates.
Domestic sales in Australia and exports from the US were highlights in the
quarter, with significant price increases.
The operation in Canada also improved compared to the same period last
year and presented volume and price growth in exports.
23.2%
1.3%
11%
22%
44%
7%
16%
EBITDA margin (%)
113.9-22.5
108.6
504.9
325.1
2.4%-0.5%
2.0%
8.6%5.5%
4Q13 1Q14 2Q14 3Q14 4Q14
31
Pork
JBS USA
32
~ 51,300 hogs per day
03 hogs processing facilities
02 case ready facilities
01 lamb processing facility
100% in the US
JBS USA Pork
Pork production in the United States
United States
CO
1
IA 1
KY 1
CA
1
1
02 case ready facilities
~3,000 lamb per day
Main Brands
Swift Premium
Dry Rubbed Ribs
Swift Premium
Rubbed Loin Filet
Products
Swift Premium
Boneless Backrib
Swift Premium
Boneless Pork Chops
Operational Platform +6,000 employees
EBITDA 2014 Net Revenue 2014 US$3.8 billion US$405.6 million
10.6% Margin
Convenience products NC
1
MN
33
904.9 896.91,028.3 937.8 964.0
4Q13 1Q14 2Q14 3Q14 4Q14
JBS USA Pork
Net Revenue (US$ million)
EBITDA (US$ million)
% NR JBS S.A.
Net revenue in the quarter totaled US$964.0 million, an increase of
6.5% compared to 4Q13.
Increase of sales prices, coupled with a 4.0% increase in the export
volume.
Compared with 3Q14, net revenue grew 2.8%, due to an increase of
60.9% in volume sold in the international market.
EBITDA for 4Q14 was US$95.7 million, with a margin of 9.9%
Increase in prices of 10.3% in the domestic market and 8.7% in exports.
The main destinations were Mexico, Japan, Greater China, South Korea
and Canada.
In 2014, net revenue for this business unit was US$3,827.0 million, an
increase of 8.8% compared to 2013. EBITDA was US$405.6 million,
78.2% higher than the previous year.
2.8%
6.5%
11%
22%
44%
7%
16%
EBITDA margin (%)
86.3 82.9113.8 113.2
95.7
9.5% 9.2% 11.1% 12.1% 9.9%
4Q13 1Q14 2Q14 3Q14 4Q14
34
Pilgrim’s Pride
35
United States Operational Platform
~ 7.5 million birds per day
6.5 million in the US
250,000 in Porto Rico
800,000 in Mexico
JBS USA Chicken (Pilgrim’s Pride Corporation - “PPC”)
Poultry production in the United States, Porto Rico and Mexico
TX
Nota *. Inclui 01 unidade de processamento de ovinos no Colorado
10 distribution centers
Located in Mexico
Mexico
With Tyson acquisition, PPC will have an additional of three
facilities, adding 600,000 birds per day of capacity and 9,000
employees
03 poultry processing facilities
10 distribution centers
4
1
3
AL
AR 1
NC 2
FL 1
GA 7
KY 1
LA
Porto Rico
SC 1
TN 1
VA 1
WV 1
01 processing facility
+ de 3,500 contract growers
36 hatcheries
28 feed mills
+39,000 employees
EBITDA 2014 Net Revenue 2014 US$8.5 billion US$1,352.2 million
15.8% Margin
24 processing facilities
05 case ready facilities
1
1
1 1
1
36
2,047.3 2,018.12,186.8 2,268.0
2,110.4
4Q13 1Q14 2Q14 3Q14 4Q14
JBS USA Chicken (Pilgrim’s Pride Corporation - “PPC”)
Net Revenue (US$ million)
EBITDA (US$ million)
% NR JBS S.A.
Net revenue of US$2,110.4 million in 4Q14, an increase of 3.1%
compared with 4Q13:
Higher sales in the US (2.8%) and Mexico (5.7%).
In 2014, net revenue was US$8,583.4 million, 2.0% higher in relation
to 2013.
EBITDA in 4Q14 was US$367.8 million, with a margin of 17,4%:
Significant improvement in PPC gross margin, due to a reduction in
grain prices, combined with better sales mix and efficiencies at
operational level.
Net income in the quarter was US$167.2 million and reflects US$48.0
million adjustment due to the early retirement of the 2018 notes and a
non-cash foreign exchange loss due to the Mexican Peso devaluation.
The 2014 net income reflects an improvement of 17% compared to the
same period in 2013. Pilgrim‘s.
3.1%
-6.9%
11%
22%
44%
7%
16%
EBITDA margin (%)
196.6 205.2
338.6435.4
367.89.6% 10.2%
15.5%
19.2%17.4%
4Q13 1Q14 2Q14 3Q14 4Q14
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.