Presented by: JJJR Consulting

Presented to: JBS Board of Directors

Overview

Key Question How can JBS sustain its growth and maintain its position as a global leader?

JBS is a global leader in the meat processing industry with 104+ key partners in 15+ countries. In addition to the food
Business Model sector, they operate in segments related to their value chain and employs 100% in-house production

JBS and its three biggest competitors makes up of ~53% of market share, with JBS leading at ~19%. This is due to their
Success Factors unique business model allowing them access to key markets and inputs their competitors cannot

Current Strategy: leverage existing M&A experience Proposed Strategy: acquire Ahimsa Foods and
Strategy and explore potential acquisition opportunities in expand into the plant-based meat market in India;
the Asian and Middle Eastern market in the long-term, expand Ahimsa into Middle East

Our recommendation is the final step in JBS capturing the global plant-based market, which in the long term will help
Impact JBS build sustainable competitive advantage

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

 JBS Business Model
JBS is a leading global meat processing company

Largest Producer in
#1 Global Beef #1 Global Poultry #2 Global Pork Leading Lamb
semi- and finished
Producer Producer Producer Producer
leather

In addition to the food sector, they also operate in segments related to their value chain including leather, personal care and cleaning products,
collagen, metal packaging, casings, biodiesel, transportation, waste management, and recycling

JBS pride themselves on a portfolio of brands (104+

globally) to continuously meet the evolving consumer
tastes

JBS is a leading global meat processing company with 104+ brands globally to provide a variety of products to meet ever-changing expectations and market
trends

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS
 JBS In-House Production Value Chains

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS Annual and Sustainability Report 2017

 Success Factor: Access to Key Markets

JBS has 400+ production units in 15+ countries: from farms, to feedlots, to processing facilities, they are involved and in control of every step
in the value chain which is fundamental to their success and a large part of their ability to maintain market share.

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS Annual and Sustainability Report 2017

 JBS Business Model
International Operations Maintaining Brand Image: 2030 Sustainability Strategy

• Portfolio of brands operating internationally

• The JBS Sustainability Committee focuses on animal welfare, conducts
• Tax strategy mainly pertains to JBS UK but includes plans related to risk stakeholder and materiality assessments, implements ethics plan
management and governance applicable to all global operations
• Contribute to the “cycle economy” by using by-products of meat production
• Supply chain protocol is in place to ensure food safety which considers to create other goods to limit waste and use 100% of raw materials
traceability and ensures quality

Key Partners

• Vendor relationship management is centralized at each individual region

• Their key partners:
• US, Puerto Rico, Canada: 8070 vendors
• Mexico: 2000 vendors (average 7-year relationship)
• Europe: 5300+ vendors (average 7+ year relationship)
• Australia: 6050 vendors

JBS operates in 15+ countries and maintains close relationships with its global partners while maintaining a strong and credible brand image through various
initiatives

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K

 Market Size
Market Share and Main Competitors Market Trends and Market Size

MARKET SHARE
JBS SA 19%
US Meat Processing Industry Growth: 7.2%
European Market 2020-2025F CAGR: 2.47%

Other 47%
Tyson 16%

2021 Market Cap: $14.8B

Cargill 11%
Smithfield 7%

In 2018, the largest 4 firms shared 53% of market share in the $227.6B
meat processing industry. The market volume for JBS is 275,000 Annualized Market Size Growth: 0%
customers in 190 countries

With ~19% market share, JBS is a global leader alongside Tyson, Cargill, and Smithfield; however, with slowing market size growth, it is important to consider
evolving market trends

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K, Statistica, IbisWorld, Forbes

 Analysis
Situational Analysis Complication Analysis

Since the COVID lockdown,

JBS has been a global leader with ~19% US per-capita meat
market share and $14.8B market cap consumption has reduced
drastically

Their sustainable success is achieved What market trend is driving this consumption change?
through access to key markets and inputs –
they ensure quality with 100% control over all
In the last year, plant-based meat industry has experienced a 264%
key inputs starting with their animals, to
their feedlots, to providing medical and growth. In alignment with JBS’ strategy and current expansion plans to
technical assistance during the entire period capture the plant-based meat market, we recommend further
in which the animals are housed investments into Planterra/Vivera to penetrate the global market and
better serve the ever-evolving needs of JBS’ consumers

Historically, JBS has achieved sustainable success in the meat processing industry

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K, Statistica, IbisWorld, Bloomberg, Forbes

 Analysis
Situational Analysis Complication Analysis

Since the COVID lockdown,

JBS has been a global leader with ~19% US US per-capita meat
market share and US$227B market size consumption has reduced
drastically

Their sustainable success is achieved What market trend is driving this consumption change?
through access to key markets and inputs –
they ensure quality with 100% control over all
In the last year, plant-based meat industry has experienced a 264%
key inputs starting with their animals, to
their feedlots, to providing medical and growth. In alignment with JBS’ strategy and current expansion plans to
technical assistance during the entire period capture the plant-based meat market, we recommend further
in which the animals are housed investments to penetrate the global market and better serve the ever-
evolving needs of JBS’ consumers

In order to maintain its position as a global leader, JBS should consider strategic partnerships similar to its recent acquisitions of Planterra/Vivera to further
capture the plant-based meat market globally

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K, Statistica, IbisWorld, Bloomberg

 Recommended Strategy
We recommend JBS leverage its recent acquisition of Vivera and expand into India

~29% of the population have a vegetarian diet, which is a 5% increase from 2020. According to a study conducted by Good Food
Why India?
Institute, ~63% of non-vegetarians responded saying they are likely to purchase plant-based meat on a regular basis

We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Emerging trend: driven by rising environmental

and health concerns, India’s vegetarian The Indian plant-based meat industry is projected
population has steadily grown. Although at
to grow at CAGR of 7.48% during 2021E-2026F,
present, the plant-based market is relatively small
in India, it is growing at an impressive rate in estimated to reach USD$47.57M by 2026
urban cities

In addition to India having the largest consumer base and one of the biggest vegetarian population, growing environmental (GHG emissions) and consumer
health concerns are acting as strong catalysts for a massive plant-based meat market

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: USDA, MDPI

Recommended Strategy: Overview
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Prioritization Short- to Long-Term Strategy

Expansive

ST: Acquire Ahimsa Foods LT: Expand into Middle East

This will allow JBS to capture the Israel, in particular, has the
Ahimsa market opportunity in India largest plant-based alternatives
Acquire
Expands
Ahimsa while allowing Ahimsa Foods consumer base. Considering the
into Middle
Foods better access across the country. proximity to India and scalability
East
This is in alignment with JBS’ AF will achieve through JBS, this
current strategy and their recent long-term objective is feasible
acquisition of Vivera and and aligns with JBS’ current
Planterra long-term expansion plans

Protective
ST LT

In the short- to mid-term, we recommend JBS acquire Ahimsa Foods and expand into India; in the long-term, we recommend JBS leverage the acquisition of
Ahimsa Foods and expand into the Middle East

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

 Recommended Strategy: Why India?
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

~29% of the population have a vegetarian diet, which is a 5% increase from 2020. According to a study conducted by Good Food
Why India?
Institute, ~63% of non-vegetarians responded saying they are likely to purchase plant-based meat on a regular basis

Emerging trend: driven by rising environmental

and health concerns, India’s vegetarian The Indian plant-based meat industry is projected
population has steadily grown. Although at
to grow at CAGR of 7.48% during 2021E-2026F,
present, the plant-based market is relatively small
in India, it is growing at an impressive rate in estimated to reach USD$650-700M by 2026
urban cities

In addition to India having the largest consumer base and one of the biggest vegetarian population, growing environmental (GHG emissions) and consumer
health concerns are acting as strong catalysts for a massive plant-based meat market

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: USDA, MDPI

 Recommended Strategy: Why India?
Market Analysis I: India VS Europe, Agglomeration Effect

Consumption Pattern Ratio to GDP

Europe: 181M/15T = 0.012

India (Phase 1): 48M/2.623T = 0.018
India (Phase 2): 700M/2.623T = 0.26686
α represents the agglomeration effect, α>0

• In Europe, competitor market share is smaller than JBS

• Smaller competitors are more risk-taking, so they are not afraid of market crowding, thus explaining their entrance
Rationale:
into India
Evaluation
• Agglomeration effect, where co-location becomes desirable due to joint input demands that stimulate growth of local
on Future supplier networks
Market Value • In other words, direct contribution of market growth will be matched by equal levels of distribution, lowering cost of
downstream activities, specifically distribution through EoS occurring at the regional levels

Nash Equilibrium demonstrates that the Indian Market is the ideal candidate

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Lecture 9_Competitive Interactions

 Recommended Strategy: Why India?
Market Analysis II: India vs US, First Mover Advantage

Assumptions and Rationale

US Market Size
• Phase 1: $1B – growth lower compared to India
• US penetration rate: 0.12  0.07 (considering high competition)
• Market share decreases from 120M to 70M

India Market Size

• Phase 1: $48M – expected to grow to $700M in phase 2
• India penetration rate: 0.3  0.4
• Market share increases from 14.3M to 350M

• By comparing market size and applying individual penetration rates, we

can compare US with India
• US: existing competitors dominate the saturated market (stagnating)
• India: market is scalable, and lack of relative competition explains higher
penetration rate

First Mover Advantage for competitors in US market, leading JBS to India Market

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Lecture 9_Competitive Interactions, Gfi.org

 Recommended Strategy: Why India?
Market Analysis III: Gravity Law for India Imports

1) Acquiring the Trade Data and applying log function across the
variables: TRADE, Country I GDP, Country J GDP, distance between
countries
2) Regress and obtain coefficients and equation
3) Keep 2 other variables constant to visualize distance variable
4) According to model, US exports to India should be much lower
5) Potential error terms may include political preference

Gravity Law model shows that US trade exports to India is abnormally high

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: CEPII, World Trade Data, Lecture 5_Trade Costs

 Recommended Strategy: Why India?
Market Analysis IV: Dependency on US

• Study done by United States Department of Agriculture

(USDA) supports this evidence on the dependency of India
imports

• US being the major exporter partner to India for protein

concentrate and textured protein substances, a key
ingredient to the production of Plant Based Meat
substitutes

USDA study bolsters the dependency of exports from US

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: USDA
 Recommended Strategy: Market Size in India
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Market Value:
Target Customers: Market Volume: Projected Purchases:
2400*7,098,864.22 =
Market Size 0.29*(1,398,790,980) = 0.35*405,649,384.2 = 0.05*141,977,284.47 =
INR$17.04B =
405,649,384.2 141,977,284.47 7,098,864.22
USD$227M

The plant-based meat market in India is forecasted to be USD$700M by 2026. With emerging trends and growing target customer base, we believe that an
assumption of 35% market penetration and 5% purchase rate is conservative and values Ahimsa’s market at USD$227M after acquisition

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS, Statistica, USDA

 Recommended Strategy: Why Middle East?
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Middle East Forecasted CAGR: 6.01%

• The fastest-growing plant-based meat markets in the Middle

East: Lebanon, Israel, and UAE

• Israel: plant-based meat showed the biggest increases, with

58% growth
• UAE: similar to Israel, local plant-based businesses are seeing a
600% increase in sales, up 100% from 2019

Aside from saturated markets (Europe and U.S.) and India, Middle East shows the highest plant-based meat industry market growth

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Al Islami, Spinneys, LiveKindly Vegan News

 Recommended Strategy: Why Acquire?
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Current Strategy Proposed Strategy

Our recommended strategy allows JBS to apply recent

Conclude the process for integrating recent acquisitions and apply
experience in acquiring Vivera to serve the European market and
experience to potential acquisitions
Planterra to serve the NA market

Continue exploring opportunities for growth through investments

In the long-term, the acquisition of Ahimsa Foods will allow JBS to
and acquisitions especially in the Middle Eastern and Asian
serve the Middle Eastern market
markets to launch operations in new markets

In alignment with two of their current strategies, we believe the acquisition of Ahimsa Foods will allow JBS to capture synergies and expand its production
and distribution capacity in a new market they have been exploring to enter

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K, Vivera, Bloomberg

 Recommended Strategy: Why Acquire?
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Successful Precedent: Vivera  European Market Successful Precedent: Planterra  North American Market

Vivera is the third largest European plant-

based food producer

In May 2021, JBS acquired Vivera at

$409M

Since the acquisition, Vivera has

expanded into 25+ countries across JBS’ recent acquisition of Planterra has also been successful in expanding
Europe, gaining large market share in the into the Canadian and Mexican plant-based markets
Netherlands, UK, and Germany

JBS recently acquired Vivera to serve the European market and Planterra to serve the North American market; based on successful precedents, we are
confident that JBS can apply their recent experience to the potential acquisition of Ahimsa Food to capture the Indian market

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS 10K, Vivera, Bloomberg

 Recommended Strategy: Why Acquire?
Strategy Analysis: Export vs Replicate

Variables Values Assumptions

1) Exporting is not an option – we do not
want to serve home market
JBS operates 23 plants 2) Test replication feasibility
K = Capital Cost of Plant $158.11M
FC = 40% total operating exp

MF = Market Demand in Foreign

$48M Based on India Market Demand
Country

WF = Marginal Cost of Production Based on Ahimsa figures

$0.453
in Foreign Country Smaller firm = smaller PLEoS

Based on Vivera: $9.78M in

WH = Marginal Cost of Production
in Home Country
$0.3286 production costs; average 3.293M+0.453>0.3286+1.176M
products $3.36; 29.8M units

• Tariff values
• Total export value (Brazil to
India) $2.89B Conclusion: Based on our calculations,
T = Per Unit Trade Cost $1.176M • Soybean Oil + Dried Legumes replication is more costly than exporting;
(10.9%) and since we do not want to export, we
• 071339: vegetables, leguminous must explore FDI
(MFN/Applied 30%)

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Vivera, OEC World, WITS WorldBank

 Recommended Strategy: Why Acquire?
Strategy Analysis: FDI + Two Stage MNE

With our proposed strategy, India would become the home country and the targeted exporting countries would be Lebanon, UAE, and Israel

Therefore, by centralization in India, this would mean that both Upstream activities such as plant processing, product creation, and innovation as well as
Downstream activities such as packaging and quality control would occur in India.

Furthermore, through this acquisition, due to the capital size and backing of JBS, production levels within India will have a higher PLEoS experiencing
lower marginal production cost

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Lecture 7_Multinational Formation

 Recommended Strategy: Why Ahimsa Foods?
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

About Ahimsa Foods Ensuring a Mutually-beneficial partnership

Founded in New Delhi in 2008, Ahimsa Foods is the earliest entrant in the
plant-based meat industry in India. The company offers its products
under the brand Veggie Champ In the area Ahimsa
currently dominates, the
vegetarian population is
~32%-50%
They have a diversity of product offerings including Shami Kebab, Meat,
Chicken, Drumsticks, Fillet, etc. JBS can help Ahimsa
scale their business
across India (and beyond)
to reach more target
Gap: Based in New Delhi, Ahimsa Foods Veggie Champ currently sells customers
only in local farm markets and selective items are only available in certain
regions

The acquisition is mutually beneficial as it allows JBS to capture the market opportunity in India and help Ahimsa Foods scale their business to reach more
target customers

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Ahimsa Foods, USDA

Recommended Strategy: Competitive Environment
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Competitive Advantages Competitive Disadvantages

• JBS is a well-established, credible company with access to resources to enter

new markets • This expansion will be the first time JBS enters India

• JBS has a strong brand image that is recognized globally • Entering into a new market means uncertainty – JBS does not understand
the market as well as local start-ups and they are unfamiliar with this new
• JBS is bigger than most of the plant-based start-ups located in India, which customer segment with different cultural preferences and expectations
means they are better equipped to overcome challenges, capture market
opportunities, etc. • There is a high threat of substitutes since India has many established plant-
based foods to serve their large vegetarian population
• JBS is entering into a market that has not been fully capitalized on

JBS acquiring Ahimsa is strategic since Ahimsa can help JBS overcome competitive disadvantages and JBS can leverage its credible brand image and access
to resources to help Ahimsa scale its operations

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

 Acquiring Ahimsa Foods
Comparable Company Analysis: EV  Acquisition Spread

Valuation Multiples Method

Market Data & Financial Data Valuation Terminal Year Revenue ($M) 7.25
Market Cap EV Revenue
EV/Sales Revenue Multiple 27.08x
Company Name ($M) ($M) ($M)
Enterprise Value ($M) 196.35
Plant & Co. Brands Ltd. 19.16 17.47 0.71 24.52x
Modern Plant Based Foods Inc. 41.06 43.29 1.46 29.65x
Discount 30% ($M) 151.04
Average 27.08x
Median 27.08x Acquisition Spread 151M - 196M

Present Value of Unlevered FCF for the

forecast period = NPV Lower Bound = $406M

$557M NPV Upper Bound = $362M

JBS should acquire Ahimsa Foods between the 151M – 196M spread

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Capital IQ, Bloomberg

Acquiring Ahimsa Foods
Revenue and NPV Projections

2019A 2020A 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
All figures in USD Millions
Revenue 5.40 7.25 14.40 26.04 43.81 69.86 107.12 159.64 233.10 335.47 477.85 675.71

Revenue is forecasted based on:

10% Global Industry Growth – 45% growth in sales
20% Indian Industry Growth, accounted for Ahimsa Foods penetration rate – 36% growth in sales
70% Trailing Average of Ahimsa Foods internal revenue growth rate
Appendix A for DCF Analysis

Present Value of Unlevered FCF for the

forecast period = NPV Lower Bound = $362M

$557M NPV Upper Bound = $406M

Implementing this strategy has an upper bound NPV of $406M (acquired at $151M) and a lower bound of $362M (acquired at $196M)

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Risks and Mitigations

Risk Probability Impact Mitigation

Create an integration team

including members of the due
Integration Shortfalls Medium Medium diligence team and those with
background in value creation

Create a change management

team to gather intelligence on
Little attention to cultural and
change management
Low Medium management styles prior, and
examine differences on buy and
sell-side as deal progresses

Apply strategy from recent

Competitive environment and
Ahimsa Foods’ inherent risk
Low Medium comparable acquisitions with
market and integration research

Pursue hedging strategies that

Political Risks (foreign exchange
rates, tariff wars)
Medium Medium account for the exchange rate
volatility and compliance for tariffs

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

 Hedging Currency Risk
JBS Brazil must exchange the Brazilian Real (BRL) for Indian Rupees (INR) to acquire Ahimsa and fund regular operational costs

Big Mac Index

(absolute purchasing power parity)

Price of Big Mac in Brazil: 22.9 BRL

Price of Big Mac in India: 190 INR

190INR ÷ 22.9BRL = 8.20 INR/BRL

Under/Overvaluation =
1 - (8.20 INR/BRL ÷ 13.176 INR/BRL) = 0.377

INR is 38% undervalued

Therefore, JBS must protect itself from

experiencing further depreciation of the
Depreciating value: 1 BRL = 13.176 INR
BRL, especially for future cashflows

Risk: BRL has depreciated against the INR since 2016

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: Big Mac Index The Economist, XE Currency Charts

Hedging Currency Risk Mitigation
Acquisition (Option 1) : Forward Currency Contract

Enter a forward contract to set a currency exchange price for the future, an amount at or above spot (today's) rate of 13.176 INR/BRL

Acquisition (Option 2) : Money Market Hedge

Pursue this strategy to lock in the value of the foreign currency through the exchange rate to offset potential loss
Steps:
1. Borrow BRL
2. Sell BRL, buy INR at the spot rate (today's rate)
3. Invest the INR at India's interest rate
4. Pay INR

Amount of BRL needed today to = 13.07 BRL

have 172.2M INR in 1 year

Use various currency exchange hedging strategies to forth-set the payment JBS will make in the future and avoid fluctuation risks

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

 Tariffs
INR has depreciated against importing countries

Fall in INR = cheaper imports for surrounding countries incentive

for higher volume of trade
UAE, Israel, and Lebanon (small open economies) imposed tariffs

Data from WTO (Ad Valorem)

Higher tariffs = greater DWL

Trade wars? Unlikely.

India is second largest trading partner of the Middle East at 3.60%
of trade volume.

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: XE Currency Charts, World Trade Organization, Kikkawa COMM 498, World Integrated Trade Solution
Overview

Key Question How can JBS sustain its growth and maintain its position as a global leader?

JBS is a global leader in the meat processing industry with 104+ key partners in 15+ countries. In addition to the food
Business Model sector, they operate in segments related to their value chain and employs 100% in-house production

JBS and its three biggest competitors makes up of ~53% of market share, with JBS leading at ~19%. This is due to their
Success Factors unique business model allowing them access to key markets and inputs their competitors cannot

Current Strategy: leverage existing M&A experience Proposed Strategy: acquire Ahimsa Foods and
Strategy and explore potential acquisition opportunities in expand into the plant-based meat market in India;
the Asian and Middle Eastern market in the long-term, expand Ahimsa into Middle East

Our recommendation is the final step in JBS capturing the global plant-based market, which in the long term will help
Impact JBS build sustainable competitive advantage

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Appendix A: Valuation
Discounted Cash Flow
2019A 2020A 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
All figures in USD Millions
Revenue 5.40 7.25 14.40 26.04 43.81 69.86 107.12 159.64 233.10 335.47 477.85 675.71
(-) COGS 1.19 1.60 3.17 5.73 9.64 15.37 23.57 35.12 51.28 73.80 105.13 148.66
Gross Profit 4.21 5.66 11.24 20.31 34.17 54.49 83.55 124.52 181.82 261.67 372.72 527.06
(-) Operating Expenses 1.70 2.28 4.54 8.20 13.80 22.01 33.74 50.29 73.43 105.67 150.52 212.85
EBIT 2.51 3.37 6.70 12.11 20.37 32.49 49.81 74.23 108.39 155.99 222.20 314.21
Add: D&A 0.11 0.15 0.29 0.52 0.88 1.40 2.14 3.19 4.66 6.71 9.56 13.51
EBITDA 2.62 3.52 6.99 12.63 21.25 33.88 51.95 77.42 113.06 162.70 231.76 327.72
Less: CapEX 0.22 0.29 0.58 1.04 1.75 2.79 4.28 6.39 9.32 13.42 19.11 27.03
Unlevered Free Cash Flows 2.40 3.23 6.41 11.59 19.49 31.09 47.67 71.04 103.73 149.28 212.64 300.69
Discount Period 1 2 3 4 5 6 7 8 9 10
WACC 6.98% 6.98% 6.98% 6.98% 6.98% 6.98% 6.98% 6.98% 6.98% 6.98%
Discount Factor 0.93 0.87 0.82 0.76 0.71 0.67 0.62 0.58 0.54 0.51
PV of Unlevered Free Cash Flows 5.99 10.12 15.92 23.73 34.02 47.39 64.68 87.02 115.86 153.14
*Allow for adjustments for change in NWC (cannot forecast without any data on PPE and inventory)

• Revenue Assumptions: 10% global industry growth; 20% Indian Industry growth; 70% trailing
average of Ahimsa Foods internal revenue growth
NPV
• COGS and Operating Expenses: % of revenue (22% and 31.5% respectively)
PV(UFCF) of Forecast Period 557.88 • Change in NWC: Allow for adjustments – cannot be forecasted without PPE & inventory info
NPV Lower Bound 406.88 • WACC: Considered JBS’ target debt/equity
NPV Upper Bound 361.88 • NPV: Considers lower and upper bound of acquisition spread
Appendix B: Comparable Company Analysis
Plant & Co. Modern Plant-Based Foods

• Plant & Co. is one of the first plant-based butcher shop in North • Based in Vancouver, they offer a range of plant-based food products
America and services including meat alternatives, homemade style soups…
• Their products can be purchased at Whole Foods, Choices, and • They have two retail stores in Vancouver and have acquired 4
other local stores (~8 store presence) brands (vegan bar and snacks)
• 2020 revenue: $0.71M • 2020 revenue: $1.46M

Comparable Company Analysis

• Both Plant & Co. and Modern Plant-Based Foods have similar business models as Ahimsa Foods – Ahimsa as one of the first entrants have established a
strong brand name and they have acquired 1 brand operating in Toronto, Canada
• However, considering that both Plant & Co. and Modern Plant-Based Foods are bigger in size (EoS, scalability, operations, PPE), we applied a discount
rate of 30% in order to obtain a more accurate spread of Ahimsa Foods’ EV
 Appendix C: Market Sizing
We recommend JBS acquire Ahimsa Foods and expand into India (ST) and the Middle East (LT)

Market Value:
Target Customers: Market Volume: Projected Purchases:
2400*7,098,864.22 =
0.29*(1,398,790,980) = 0.35*405,649,384.2 = 0.05*141,977,284.47 =
INR$17.04B =
405,649,384.2 141,977,284.47 7,098,864.22
USD$227M

Market Size
Projected Purchases is Market Value is their
Market Volume is their
the percentage of the market value times a
penetration rate times
target market volume target customer’s
Target Customers is the target customers. 20% is
that would purchase average annual
percentage of India’s JBS’ affiliated brands’
from Ahimsa. Given the spending. INR$2400 is a
population that are average penetration
vegetarian population conservative estimate
vegetarians (29% of their rate; given the Indian
that chooses plant- assuming each
entire population) market, we believe this
based meat and customer makes one
is a conservative
Ahimsa’s current base, package purchase a
estimate
we assume 5% month

Overview | Business Model | Success Factors | Analysis | Strategy | R&M

Sources: JBS, Statistica, USDA

Appendix D: Indian Demographics

29% of India’s population are vegetarians

54% of early adopters are familiar with plant-based meat.

~80% are willing to try the products

With increased environmental (GHG Emissions) concerns and personal

health concerns, more of India’s population are becoming vegetarians (38%
growth in the last two years). The Indian plant-based meat market is

expected to grow to $650-700M by 2025

 Appendix E: Competitors in India
Good Dot Goodmylk Evo Foods

• Good Dot has steadily established itself as a

leading plant-based meat brand in India • Formulated a unique plant-based liquid
• They sell vegetarian biryani, keema, curries • Offers plant-based dairy alternatives egg in India
and ready-made meals • Offerings also include curd, vegan mayo, • Use food science to extract proteins from
• One of the first to enter the market, with butter, and Indian cottage cheese legumes and other plant sources to create
~$2.7M in revenue and ~$11M EV • Headquartered in Bengaluru, Karnataka an egg replica that is environmentally
• Export their products to Canada, Dubai, friendly and healthy
Singapore

Imagine Meats Vezlay Wakao Foods

• Goa-based Wakao Foods makes plant-

• Offers ready-to-eat food products made of based meat products from jackfruit
• Founded by Indian film industry celebrity
soya • India, the world’s biggest producer of
couple
• Offers soya kaba, shami kabab, soya chop, jackfruit is using it for making vegetarian
• Offers plant-based meat products on the
soya leg pieces, soya noodle, etc. recipes
market in partnership with America’s ADM
• Also headquartered in New Delhi • This has caught the world’s attention as a
vegan substitute for meat

Sources: Change Started, 2021

 Appendix E: Competitors in India Continued
Beyond Meat

Beyond Meat is planning to expand into India with their Beyond Burgers and
Sausages at store and online locations across the country. One problem that
Beyond will face is that many Indian consumers are not looking for westernized
products like burgers and sausages but rather plant-based products that replicate
traditional Indian food dishes.

Moreover, although Beyond Meat has a global presence similar to that of JBS,
their biggest competitive disadvantage is that they have never operated in India
before and do not understand the customer needs as much as local plant-based
meat companies do. Their lack of experience will be a huge hindrance to
capturing market share in India, given their unique taste and expectations for
meat substitutes

Sources: Animal Equality, 2021

Appendix F: Vivera and Planterra
Vivera Planterra

• JBS acquired Vivera in May 2021 at $409M to serve the

European market • JBS acquired Planterra in July 2021 to serve the North
• Vivera is the third largest European plant-based food American market
producer • Since the acquisition, Planterra OZO (which is based
• Since the acquisition, Vivera has expanded into 25+ in the US) has now successfully expanded into the
countries across Europe, gaining large market share in Canadian and Mexican plant-based markets
the Netherlands, UK, and Germany
Appendix G: Middle Eastern Market Growth

Middle East forecasted CAGR: 6.01%

Israel: plant-based burgers, minced meat, and non-soy

plant-based milk showed the biggest increases, with
58% and 52% growth respectively
UAE: similar to Israel, local plant-based businesses are
seeing a 600% increase in sales, up 100% from 2019
Appendix H: Gravity Model Calculations
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