JBS DAY

A GLOBAL
FOOD
COMPANY
So Paulo, November 12, 2015

JBS AT A GLANCE
Net Revenue of R$150

billion (LTM)

Second largest global food company

Prepared &
Others
30%

Beef
32%

LTM Revenue
3Q15
R$150 bi

Pork
16%

Poultry
22%

Global and diversified platform

Value added product portfolio with brands
High performance team with more than
230 thousand employees

Focus on operational
Source 1: Bloomberg

excellence
2

A GLOBAL COMPANY
Exclusive Global Production and Sales Platform

3%

CANADA

RUSSIA

EUROPE

1%

6%

47%
USA

6%

ASIA

AFRICA &
MIDDLE EAST

MEXICO

11%
4%

BRAZIL

South Am.
OTHERS

12%

6%
As % of Total Revenue
Production footprint

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

OCEANIA

4%

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

CARGILL PORK
Net Revenue LTM3Q15:

IPO JBS SA

19,000
EMPLOYEES

2006
Net Revenue: R$3.9 bi

Net Revenue: R$14.1 bi

2007

BERTIN

R$150.1 bi

2009
2008

Net Revenue: R$30.3 bi

2013
2010

EXPANSION IN USA AND AUSTRALIA

Net Revenue: R$54.7 bi

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

2015
2014

ACQUISITIONS: TYSON IN BRAZIL

AND MEXICO

230,000
EMPLOYEES

STRATEGY
Global and Diversified Production and Distribution Platform progressing towards value added
products with brands

\\\\\\\\\\\\

Branding

Value added products

Sales and distribution platform

Production platform

+350,000 costumers and

sales to +150 countries
+300 production units in
+15 countries
5

HISTORICAL PERFORMANCE
Constant Revenues and EBITDA Margin Growth

| Net Revenue Growth:

77%

| EBITDA Growth:
11,8%

9,6%

9,2%

8,4%
7,1%

6,9%

1.710
3T13 3Q13
3T13

1.874
4T134Q134T13

8,9%

8,2%

6,6%

27.222

24.222

124%
43.029

38.905
28.969

26.419

2.433

1.750
1T141Q14
1T14

2T142Q142T14

Net Revenue (R$ million)

34.303

30.779

3.618

3T143Q143T14
EBITDA (R$ million)

3.290

33.819

2.758

4T144Q144T14

1T151Q151T15

3.577

2T152Q152T15

3.834

3T153Q153T15

EBITDA Margin (%)

CONSOLIDATED RESULTS
3Q15
7

3Q15 CONSOLIDATED HIGHLIGHTS

CONSOLIDATED NET SALES (R$ MILLION)

CONSOLIDATED EBITDA (R$ MILLION)

EBITDA Margin (%)

43,029

11.8%
8.9%

30,779
39.8%

3,834

3,618
6.0%

3Q14

3Q15

3Q14

3Q15

| Robust sales growth

| Solid operational results

3Q15 CONSOLIDATED HIGHLIGHTS

NET INCOME (R$ MILLION)
Earnings Per Share (R$)
Reported Net Income

288.6%

1,092.9

FREE CASH FLOW GENERATION (R$ MILLION)

4,246.7

3,441.4

5,066

Adjusted
Net Income

137.8%

2,130

1.19

0.38
3Q14

3Q15

3Q14

3Q15

| Net income reached a historical high

| Increased Earnings Per Share (EPS) (Cancelation of shares held in treasury)
| Robust Free Cash Flow Generation
9

3Q15 CONSOLIDATED HIGHLIGHTS

RECENT ACQUISITIONS
| Tyson de Mexico

| Cu Azul

| Primo Group

| Anhambi

| Total Value: ~US$ 3.5 billion

| Moy Park

| Tyson do Brasil

| Revenues: ~US$ 5.0 billion

| Big Frango
NET DEBT - US$ MILLION

NET DEBT (R$ MILLION) / LEVERAGE

2.54x

2.55x
2,32x

41,707
10,546

10,498

25,848

3Q14

3Q15

3Q14

Note 1. leverage considering proforma results from recent acquisitions (does not include Cargill Pork).

3Q15
10

FX HEDGING POLICY
FX Exposure and Hedge Position at the end of 3Q15
JBS EXPOSURE TO US DOLLAR (R$ BILLION)
Financial Liability Operational Asset

52.0

HEDGE POSITION (R$ BILLION)

Net
NetExposure
ExposURE

Hedge

43.1

41.4

8.9
Financial
Liability

Unhedged Position

1.7

Operational
Asset

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

11

BUSINESS UNITS
3Q15
12

JBS FOODS

13

JBS FOODS
NET REVENUE (R$ MILLION)

EBITDA (R$ MILLION)

20.7%

5,012.2

1,040.0

17.1%

3,376.8

576.0
80.5%

48.4%

3Q14

3Q15

3Q14

3Q15

| Expressive organic growth and via acquisitions.

| Continuous EBITDA margin expansion.
| Commitment to improved performance.
| Focus in quality, innovation and brands.

14

EVOLUTION OF JBS FOODS

NET REVENUE (R$ BILLION)

CONSISTENCY OF RESULTS (EBITDA Margin %)

20,7%

20,0
17,0

15,9%

12,9

13,7%

10,6
18.0%
31.8%

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

3Q15

2Q15

1Q15

2014

3Q15 Annualized

4Q14

LTM3Q15

3Q14

2014

2Q14

2013 (Acquisition)

1Q14

21.7%

15

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

16

JBS MERCOSUL

17

JBS MERCOSUL
NET REVENUE (R$ MILLION)

EBITDA (R$ MILLION)

7,146.9

6,470.5

640.8

554.6
10.5%

3Q14

9.0%

8.6%

15.5%

3Q15

3Q14

3Q15

| 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.
18

JBS EUROPE

19

JBS EUROPE OVERVIEW

NET REVENUE (R$ MILLION)
+59%
4.006

2012

4.723

2013

5.508

2014

6.383

LTM 3Q15

| 15 production units with 12 thousand employees

| 450 thousand tons of products processed
annually
In Natura
Convenience and Value Added UK
Convenience and Value Added Europe
Poultry Breeding Grounds
Rigamonti
Source: Company

20

MOY PARK: VALUE ADDED PRODUCTS

Prepared & Breaded

Convenience & Others

Products

In Natura

In Natura

Prepared & Breaded

Convenience & Others

51%

Retail

Foodservice

62%

7%

Others
27%

10%

Costumers

Channel
Mix

42%

Note 1: 2014 Revenues Percentage.

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

21

MOY PARK: INNOVATION BENCHMARKING

DEVELOPMENT OF PRIVATE LABEL PRODUCTS

EMBEDDED CHEFS

NEW PRODUCT SAMPLES DEVELOPED BY MOY PARK

FOOD DEVELOPMENT INNOVATION & INSIGHT HEADCOUNT
R&D Headcount

+50

76

26
2011

2014

BENCHMARK IN POULTRY BREEDING PRACTICES

Antibiotic Free
Free Range
Organics

22

JBS USA BEEF

23

JBS USA BEEF

NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)

8.6%

5,849.3

5,750.9
3.4%

504.9
-61.0%

-1.7%

Swift
(bolinha) e
Primo

3Q14

196.8

3Q15

3Q14

3Q15

| Lower cattle availability in US as a consequence of stronger Heifer

and 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 2015
and 60% in 2016, reaching 340 million lbs.
24

PRIMO: VALUE ADDED PRODUCT DIVERSIFICATION

Retail

Foodservice
74%

Distributors

Exports & Others

5%

18%

2%

Leading
Brands

Channel
Mix

Products

Processed

Note 1: Others: retail stores

25

PRIMO: LEADING BRANDS IN OCEANIA

Leading Brand in Australia

Private Label
8%
Other
5%
Bertocchi
10%

Primo
40%

Tegel Foods
4%

Other
8%

Premier
Beehive
37%

Hobsons Choice
4%
A.Verkerk
9%

Ingham
3%

Dorsogna
11%

Leading Brand in New Zealand

George Weston
23%

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

Private Label
10%

Hellers
28%

26

JBS USA PORK

27

JBS USA PORK

NET REVENUE (US$ MILLION)
937.8

EBITDA (US$ MILLION)

12.1%

785.4
113.2

-16.3%

6.2%
-57.2%

3Q14

3Q15

3Q14

48.4

3Q15

| 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 the
initiation of integration and synergy capturing.
28

NEW JBS USA PORK

FINANCIAL HIGHLIGHTS

MN
1

| Proforma Net Revenue of US$6.3 billion.

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

| 20% market share.

IA

2
1

IL
1

CO
MO

CA
OK

KY

NC
1

AR

1
2

TX
1
1

OPERATIONAL HIGHLIGHTS

| 90,000 hog processing capacity per day.

| 5.0 million lbs of prepared and value
added products per week.

05 hog processing units

05 feed mills

01 lamb processing unit

04 genetic units

| 2.0 million lbs of bacon produced per

03 consumer ready facilities

week.

29

JBS USA CHICKEN

PILGRIMS PRIDE (PPC)
30

JBS USA CHICKEN (PPC)

NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)

19.2%

2,268.0

2,112.5

435.4

13.0%

-6.9%
-37.0%

3Q14

3Q15

3Q14

274.3

3Q15

| 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 of
markets reopening.
31

NEW PILGRIMS IN MEXICO

FINANCIAL HIGHLIGHTS
| US$1.6 billion in revenue annually.
| 28% Market Share.

FACILITIES FOOTPRINT
06 poultry processing units
17 Distribution Centers

| US$50.0 million synergies in progress.

OPERATIONAL HIGHLIGHTS
| 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.
32

MARKETING AND INNOVATION

33

Marketing and Innovation

THE POWER OF MARKETING AND INNVOATION

IN FOOD

Source 1: globe newswire

Adding
Value

Bottled Water Market Value

US$ ~160 billion

34

SEARA
35

REPOSITIONING OF THE SEARA BRAND

SEARA BRAND UNTILL 2013...

FOOTBALL oriented Marketing, through the

sponsorship of teams and events.
SINGLE-TIER, with no price category diversification.

...REPOSITIONING TROUGHOUT 2014

Seara is the brand of the contemporary

woman, with FOCUS ON QUALITY, taste and
convenience.
Seara becomes a MULTI-TIER brand.

Experimente Seara

A QUALIDADE VAI TE SURPREENDER

36

SEARA CAMPAIGN

37

BRAND PREFERENCE
TRIPLED

90% COSTUMERS CONSIDERS

SEARA IN THE BUYING
PROCESS

Mainstream

Premium

BRAND REPOSITIONING

SECOND PLACE
ON TOP OF MIND!

Regional/
Access

CONSIDERED THE BRAND OF

THE MODERN WOMAN!

ONE OF THE MOST REMEMBERED

TV COMERCIALS IN TEN
(SOURCE: DATAFOLHA)

SEARA WAS THE MOST

APPRECIATED BRAND IN 2014
38

BUYING BEHAVIOUR EVOLUTION

REPEATED PURCHASE

46%
PENETRATION
(Presence in Brazilian homes)

+3,579,950 lares
(1S15 vs. 1S14)

Repeat Rate: 67%

+ 7.1%
VOLUME PER OCCASION
(Volume growth)

(1S15 vs. 1S14)

+12.7%
BUYING RATE
(Per semester)

2.5 visits

Testers

Repeaters

Monthly Penetration

Besides the conquest of new buyers throughout Brazil, the

repetition conversion is already happening at Seara.

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

39

MARKET SHARE EVOLUTION

FROZEN AND MARGERINES

INDUSTRIALIZED AND PIZZAS

30,2
24,6
19,5

26,4

26,4

27,6

28,8

29,6

31,1

31,8

32,5

15,0

15,3

May/Jun 15

Jul/Aug 15

24,5

20,3

22,5

7,2

7,0

7,6

Aug/Sep 14

Oct/Nov 14

Dec/Jan 15

Frozen

8,7

8,8

9,0

9,1

Feb/Mar

Apr/Mar 15

Jun/Jul 15

Aug/Sep 15

Margerines

13,2

13,2

13,6

13,9

Jul/Aug 14

Sep/Oct 14

Nov/Dec 14

Jan/Feb 15

Industrialized

Source: 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

13,7

Mar/Apr 15

Pizzas

40

FRIBOI
41

DECOMMODITIZING BEEF
FRIBOI FROM 2013 ONWARDS

| Sparce Marketing
Investments.
| Beef still treated as
commodity.

Decommoditization

FRIBOI WAS...

| 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 benefit through
guarantee of origin.
| Comercials aired on TV, radio, banners, magazines
and stand ups.

42

FRIBOI CAMPAIGN

43

POSITIONING OF FRIBOI IN BRAZILIAN MARKET

FRIBOI BRAND POSITIONING IN THE MARKET (Basket of Cuts)

PRICING INDEX OF JBS BRANDS IN BRAZIL

Friboi average price vs Market average price

104%
103%
101%
98%

150%

135%

125%

120%

115%

100%

Source: JBS and Shoppingbrasil IFR

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

2013 Pre
Campaign

2013 Post
Campaign

2014

YTD 2015

After the Slogan Ask for Friboi. Reliable Beef has a

Name, Friboi prices increased 5% compared to the
market average
44

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.

45

DISCLAIMER
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 Companys 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.