Presentation JBS Day 3Q15

7/24/2019 Presentation JBS Day 3Q15

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JBS DAY

A GLOBAL

FOOD

COMPANY

So Paulo, November 12, 2015


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Global and diversified platform

Value added product portfolio with brands

Focus on operational excellence

High performance team with more than230 thousand employees

Net Revenue of R$150 billion (LTM)

Second largest global food company

JBS AT A GLANCE

Beef32%

Poultry

22%

Pork

16%

Prepared &Others

30%LTM Revenue

3Q15

R$150 bi

2Source 1: Bloomberg


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3

A GLOBAL COMPANYExclusive Global Production and Sales Platform

As % of Total Revenue

Production footprint

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

CANADA

3

USA

47%

MEXICO

6%

BRAZIL

12%

outh Am.

OTHERS

EUROPE

RUSSIA

ASIA

AFRICA &

MIDDLE EAST

OCEANIA

6%

6%

4%

4%

1

11%


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4

IPO JBS SA

Net Revenue: R$14.1 bi2007

2008

Net Revenue: R$30.3 bi

2009

BERTIN

2010

EXPANSION IN USA AND AUSTRALIA


2013

ACQUISITIONS: TYSON IN BRAZIL

AND MEXICO

2014

CARGILL PORK

Net Revenue LTM3Q15:

R$150.1 bi

2015

230,000

EMPLOYEES

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

EVOLUTION

2006

19,000

EMPLOYEES


Note 1. Not considering revenues from Moy Park and Cargill Pork


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STRATEGYGlobal 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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| Net Revenue Growth: 77%

HISTORICAL PERFORMANCEConstant Revenues and EBITDA Margin Growth

EBITDA Margin (%)EBITDA (R$ million)Net Revenue (R$ million)

| EBITDA Growth:124%

7,1% 6,9% 6,6%

8,4%

11,8%9,6%

8,2%

9,2% 8,9%

24.22227.222 26.419

28.969 30.77934.303 33.819

38.90543.029

1.710 1.874 1.7502.433

3.618 3.290 2.7583.577 3.834

3T13 3T13 4T13 4T13 1T14 1T14 2T14 2T14 3T14 3T14 4T14 4T14 1T15 1T15 2T15 2T15 3T15 3T153Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15


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CONSOLIDATED RESULTS

3Q15

7


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3,618 3,834

11.8%

8.9%

3Q14 3Q15

30,779

43,029

3Q14 3Q15

8

3Q15 CONSOLIDATED HIGHLIGHTS

EBITDA Margin (%)

CONSOLIDATED NET SALES

(R$ MILLION)CONSOLIDATED EBITDA

(R$ MILLION)

| Robust sales growth

| Solid operational results

39.8%

6.0%


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1,092.9

3,441.4

0.38

1.19

3Q14 3Q15

2,130

5,066

3Q14 3Q15

9

NET INCOME

(R$ MILLION)FREE CASH FLOW GENERATION

(R$ MILLION)

| Net income reached a historical high

| Increased Earnings Per Share (EPS) (Cancelation of shares held in treasury)

| Robust Free Cash Flow Generation

137.8%


288.6%

Earnings Per Share (R$)Reported Net Income

AdjustedNet Income

4,246.7


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52.0

8.9

43.1

Financial Liability Operational Asset Net ExposURE

11

FX HEDGING POLICY

JBS EXPOSURE TO US DOLLAR (R$ BILLION)HEDGE POSITION

(R$ BILLION)

41.4

1.7

Hedge Unhedged Position

FX Variation on Net Exposure: R$10.1 billion

Effect on Financial Results: R$6.1 billion

Effect on Equity: R$4.0 billion

Hedge Result: R$9.5 billion

Financial

Liability

Operational

Asset

Net

Exposure

FX Exposure and Hedge Position at the end of 3Q15


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BUSINESS UNITS

3Q15

12


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13

JBS FOODS


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3,376.8

5,012.2

3Q14 3Q15

14

JBS FOODS

| Expressive organic growth and via acquisitions.

| Continuous EBITDA margin expansion.

| Commitment to improved performance.

| Focus in quality, innovation and brands.

48.4% 80.5%

NET REVENUE

(R$ MILLION)EBITDA

(R$ MILLION)

576.0

1,040.017.1%

20.7%

3Q14 3Q15


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13,7%

15,9%

20,7%

1Q14

2Q14

3Q14

4Q14

2014

1Q15

2Q15

3Q15

10,6

12,9

17,0

20,0

2013 (Acquisition) 2014 LTM3Q15 3Q15 Annualized

NET REVENUE

(R$ BILLION)

Note 1: proforma net revenue considers combined 2013 results from Seara + JBS Aves

CONSISTENCY OF RESULTS

(EBITDA Margin %)

21.7%

31.8%

EVOLUTION OF JBS FOODS

18.0%

15


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16

OPERATIONAL EXCELLENCE

Source: Company

Costumer Service (OTIF on time in full)

23 improvement

Point of Purchase Out of Stock

24 improvement

Active Costumers

An increase of 29 thousand

Perceived Quality

26 improvement in quality drivers

Productivity Drivers

An increase of 400 bps in operational efficiency index


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17

JBS MERCOSUL


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554.6640.8

8.6% 9.0%

3Q14 3Q15

6,470.5

7,146.9

3Q14 3Q15

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JBS MERCOSUL

10.5% 15.5%

| Recovery of exports and opening of Chinese and Saudi markets.

| Operational profitability improvement.

| Better supply and demand dynamics.

| Continuous investments in Friboi brand.

| Outlook of trade with the US.

NET REVENUE

(R$ MILLION)EBITDA

(R$ MILLION)


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19

JBS EUROPE


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4.0064.723

5.5086.383

2012 2013 2014 LTM 3Q15

20Source: Company

In Natura

Convenience and Value Added UK

Convenience and Value Added Europe

Poultry Breeding Grounds

Rigamonti

NET REVENUE (R$ MILLION)

+59%

JBS EUROPE OVERVIEW

| 15 production units with 12 thousand employees

| 450 thousand tons of products processedannually


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42% 51% 7%

In Natura Prepared & Breaded Convenience & Others

62% 27% 10%

Retail Foodservice Others

MOY PARK: VALUE ADDED PRODUCTS

In Natura Prepared & Breaded Convenience & Others

P

o

s

C

M

i

x

C

u

m

e

s

Note 1: 2014 Revenues Percentage.

Note 2: Others includes agricultural costumers, poultry international costumers and poultry sub products. 21


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26

76

2011 2014

+50

MOY PARK: INNOVATION BENCHMARKING

DEVELOPMENT OF PRIVATE LABEL PRODUCTS

NEW PRODUCT SAMPLES DEVELOPED BY MOY PARK

EMBEDDED CHEFS

FOOD DEVELOPMENT INNOVATION & INSIGHT HEADCOUNT

R&D Headcount

BENCHMARK IN POULTRY BREEDING PRACTICES

Antibiotic Free

Free Range

Organics

22


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23

JBS USA BEEF


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504.9

196.8

8.6%

3.4%

3Q14 3Q15

5,849.3 5,750.9

3Q14 3Q15

24

JBS USA BEEF

-1.7%-61.0%

Swift

(bolinha) e

Primo

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)

| Lower cattle availability in US as a consequence of stronger Heiferand Cow retention.

| Impact of Australian dollar devaluation vs. US Dollar.

| New management in Primo leading the process of reorganization,integration and synergy capturing.

| 30% expansion of value added products (consumer ready) in 2015and 60% in 2016, reaching 340 million lbs.


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PRIMO: VALUE ADDED PRODUCT DIVERSIFICATION

Processed

P

o

s

C

M

i

x

L

n

a

74% 5% 18% 2%

Retail Foodservice Distributors Exports & Others

Note 1: Others: retail stores25


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PRIMO: LEADING BRANDS IN OCEANIA

Primo40%

George Weston23%

Dorsogna11%

Ingham3%

Bertocchi10%

Other5%

Private Label8%

Leading Brand in Australia

PremierBeehive

37%

Hellers28%

Private Label10%

A.Verkerk9%

Hobsons Choice4%

Tegel Foods4%

Other8%

Leading Brand in New Zealand

Source: Australia and New Zealand Market Share data based in Woolworths & Coles (September 2015)26


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JBS USA PORK


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113.2

48.4

12.1%

6.2%

3Q14 3Q15

937.8

785.4

3Q14 3Q15

28

JBS USA PORK

-57.2%

-16.3%

| Increase in pork supply and decrease in prices.

| Increase of products and clients portfolio through the acquisition of

Cargill Pork, concluded in October 30th.| Increased sales of value added products.

| Defined management team at the New JBS USA Pork with theinitiation of integration and synergy capturing.

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)


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NEW JBS USA PORK

| Proforma Net Revenue of US$6.3 billion.

| Proforma EBITDA of US$565 million(Pre-Synergies).

| 20% market share.

| 90,000 hogprocessing capacity per day.

| 5.0 million lbsofpreparedand value

added productsper week.

| 2.0 million lbs of baconproduced perweek.

FINANCIAL HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

05 hog processing units

01 lamb processing unit

03 consumer ready facilities

05 feed mills

04 genetic units

CA

2

1

TX

1

AR

2

1

OK

CO1 MO

2

IA2

1

1

MN

IL1

KY1

NC1


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30

JBS USA CHICKEN

PILGRIMS PRIDE (PPC)


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435.4

274.3

19.2%

13.0%

3Q14 3Q15

2,268.02,112.5

3Q14 3Q15

31

JBS USA CHICKEN (PPC)

-6.9%

-37.0%

| Robust Cash generation.

| Decrease in prices in domestic and export markets.

| US$30 million impact of non recurring costs in the quarter.

| US$200 million in operational improvements through 2015.

| Challenging environment for exports, but with the expectation ofmarkets reopening.

NET REVENUE

(US$ MILLION)EBITDA

(US$ MILLION)


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NEW PILGRIMS IN MEXICO

| US$1.6 billion in revenue annually.

| 28% Market Share.

| US$50.0 million synergies in progress.

| Conclusion of Tyson de Mxico acquisition in

July 2015.

| Integration 100% concluded.

| +10,000 Team members.

| 1.3 million poultry processed per day.

| Strong nationally recognized brands.

| New Vera Cruz complex initiating in December

2015.

FINANCIAL HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

06 poultry processing units

17 Distribution Centers

FACILITIES FOOTPRINT

32


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MARKETING AND INNOVATION


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THE POWER OF MARKETING AND INNVOATION

IN FOOD

M

a

k

n

a

n

a

o

Adding

Value

Bottled Water Market Value

US ~160 billion

Source 1: globe newswire34


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SEARA

35


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REPOSITIONING OF THE SEARA BRAND

FOOTBALL oriented Marketing, through the

sponsorship of teams and events.

SINGL TI R, with no price category diversification.

SEARA BRAND UNTILL 2013... ...REPOSITIONING TROUGHOUT 2014

Seara is the brand of the contemporary

woman, withFOCUS ON QUALITY

, taste and

convenience.

Seara becomes a MULTI TI R brand.

Experimente Seara

A QUALIDADE VAI TE SURPREENDER

36


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SEARA CAMPAIGN

37


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BRAND PREFERENCETRIPLED

90% COSTUMERS CONSIDERSSEARA IN THE BUYING

PROCESS

CONSIDERED THE BRAND OFTHE MODERN WOMAN!

SECOND PLACEON TOP OF MIND!

ONE OF THE MOST REMEMBEREDTV COMERCIALS IN TEN(SOURCE: DATAFOLHA)

SEARA WAS THE MOSTAPPRECIATED BRAND IN 2014

Premium

Mainstream

Regional/

Access

BRAND REPOSITIONING


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BUYING RATE

(Per semester)

VOLUME PER OCCASION

(Volume growth)

PENETRATION

(Presence in Brazilian homes)

+

3,579,950 lares

(1S15 vs. 1S14)

46%

+ 7.1%

+12.7%

2.5 visits

(1S15 vs. 1S14)

BUYING BEHAVIOUR EVOLUTION

39

REPEATED PURCHASE

Besides the conquest of new buyers throughout Brazil, therepetition conversion is already happening at Seara.

Testers Repeaters Monthly Penetration

Repeat Rate: 67%

Source: Kantar WorldPanelConsuming evolution in Brazilian homes (Categories: Pizzas, Pasta, Hamburger, Breaded, Snacks, Sausages and Ham (1S15 vs. 1S14 variation)


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19,5

20,3

24,6

26,4 26,4

27,6

30,2

7,2

7,0

7,6

8,7

8,8

9,0

9,1

Aug/Sep 14 Oct/Nov 14 Dec/Jan 15 Feb/Mar Apr/Mar 15 Jun/Jul 15 Aug/Sep 15

Frozen Margerines

13,2 13,2

13,6

13,9

13,7

15,0

15,3

22,5

24,5

28,8

29,6

31,1

31,8

32,5

Jul/Aug 14 Sep/Oct 14 Nov/Dec 14 Jan/Feb 15 Mar/Apr 15 May/Jun 15 Jul/Aug 15

Industrialized Pizzas

40Source: AC Nielsen - Market Share by Volume Category - Includes Excelsior. In Frozen, includes Massa Leve from Aug/Sep 14, Agrovneto and Macedo from Dez/Jan 15 and Big Frango from Fev/Mar/15

MARKET SHARE EVOLUTIONFROZEN AND MARGERINES INDUSTRIALIZED AND PIZZAS


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FRIBOI

41


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DECOMMODITIZING BEEF

Decom

moditization

FRIBOI WAS... FRIBOI FROM 2013 ONWARDS

| Sparce Marketing

Investments.

| Beef still treated as

commodity.

| Increase in Marketing investments through a well

known national TV celebrity.

| Slogan Ask for Friboi. Reliable Beef has a Name.

| Focus on comunicating the reliability benefitthrough

guarantee of origin.

| Comercials aired on TV, radio, banners, magazines

and stand ups.

42


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FRIBOI CAMPAIGN

43


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POSITIONING OF FRIBOI IN BRAZILIAN MARKET

44

100%

115%

120%

125%

135%

150%

98%

101%

104% 103%

2013 Pre

Campaign

2013 Post

Campaign

2014 YTD 2015

Friboi average price vs Market average price

After the Slogan Ask for Friboi. Reliable Beef has a

Name, Friboi prices increased 5% compared to the

market average

Source: JBS and Shoppingbrasil IFRNote 1: Basket is composed by: shoulder, rump, strip loin, round cuts, tenderloin, flank steak, and top sirloin cap.

PRICING INDEX OF JBS BRANDS IN BRAZIL FRIBOI BRAND POSITIONING IN THE MARKET (Basket of Cuts)

Mission


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To be the best in whatwe set out to do,

completely focused onour business, ensuring the

best products andservices for our

customers, consistencyfor our suppliers,

profitability for our

shareholders and theopportunity of a betterfuture for all our team

members.


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DISCLAIMER

This release contains forward-looking statements relating to the prospects of the business, estimates foroperating and financial results, and those related to growth prospects of JBS. These are merely projectionsand, as such, are based exclusively on the expectations ofJBSmanagement concerning the future of thebusiness and its continued access to capital to fund the Companys business plan. Such forward-lookingstatements depend, substantially, on changes in market conditions, government regulations, competitivepressures, the performance of the Brazilian economy and the industry, among other factors and risks

disclosed inJBSfiled disclosure documents and are, therefore, subject to change without prior notice.

Presentation JBS Day 3Q15

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