JBS S.A.

A GLOBAL
FOOD
COMPANY
Institutional Presentation
Including 3Q16 Results

Our Values
DETERMINATION
Be relentless. Deliver superior results.
Adopt a sense of urgency. Make
things happen.

SIMPLICITY
Be practical. Focus on what is
important. Adopt a hands-on
approach. Avoid bureaucracy.

AVAILABILITY
Be receptive and open. Always be
prepared and motivated to take on
new challenges.

HUMILITY

SINCERITY
Be direct, truthful and transparent.
Respectfully express opinion. Know
how to say no, but be positive and
offer solutions.

DISCIPLINE
Be punctual. Fulfill commitments.
Deliver results. Do not make excuses.

OWNERSHIP
Be committed to results. Focus on
details. Take responsibility.

Listen. Be helpful and thoughtful. Act

with respect. Prioritize the team over
yourself. Value the opinion of others.

JBS AT A GLANCE
Net Revenue of R$176

billion LTM 3Q16

Second largest global food company

Global and diversified platform
Value added product portfolio with brands
High performance team with more than
235 thousand employees

Focus on operational
Source 1: Bloomberg

excellence
3

GLOBAL LEADERSHIP TEAM

Wesley Batista
Global CEO

Russ Colaco
Global CFO

Enas Pestana
CEO of
JBS
South America

Andr
Nogueira
CEO of
JBS USA

Gilberto
Tomazoni
Global
Operations
President

Vincent Trius
Global
President of
New Projects

Tarek Farahat
Global
Marketing and
Innovation
President

A GLOBAL COMPANY
An Exclusive Global Production and Sales Platform

3%

CANADA

RUSSIA

EUROPE

1%

5%

51%

12%

USA
MEXICO

ASIA

3%

AFRICA &
MIDDLE EAST

3%
BRAZIL

South Am/
OTHERS

15%

3%
As % of Total Revenue
Production footprint

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

OCEANIA

4%

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

CARGILL PORK
Net Revenue 2015:

IPO JBS SA

19,000
EMPLOYEES

2006
Net Revenue: R$3.9 bi

Net Revenue: R$14.1 bi

2007

BERTIN

R$163 bi

2009
2008

Net Revenue: R$30.3 bi

2013
2010

EXPANSION IN USA AND AUSTRALIA

Net Revenue: R$54.7 bi

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 customers and

sales to +150 countries
+300 production units in
+15 countries
7

CONSOLIDATED EXPORTS
Exports Breakdown in LTM 3Q15 and LTM 3Q16
Greater China
19.85%

Others
10.63%
Canada
2.70%
Russia
3.59%

LTM 3Q16
US$14,205.2
million

Mexico
5.09%

Canada
2.44%

Greater China
17.55%

Others
9.16%

Mexico
4.50%
Russia
4.71%

E.U.
5.93%
South Korea
6.27%

LTM 3Q15
US$15,870.9
million

USA
10.89%

Note 1: Considers China & Hong Kong

Africa & Middle East

13.60%

Africa & Middle

East
13.56%

South Korea
7.13%

Japan
11.51%

E.U.
7.93%
USA
8.99%

South America
9.02%

South America
13.56%
Japan
11.39%

BUSINESS UNITS
3Q16
9

SEARA
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
Operational Platform

Brazil

72,000 employees

5.7 million birds per day

CE

Production units located in the south,

southeast and mid-west regions

PE

BA

MS

and mid-west regions

PR

RS

Production units located in the south,

1
1
1

MG

SP

southeast, northeast and mid-west

regions

SC

20 PFP units

3
1

116,000 tons per month

08 slaughterhouses and deboning units

DF

1
1

Production units located in the south

32 slaughterhouses and deboning units

MT

21,200 hogs per day

RJ

14 distribution centers

14 distribution centers
In 11 states

Main Brands

Net Revenue LTM 3Q16

R$18.8 billion

EBITDA LTM 3Q16

R$2.2 billion
11.8% Margin
10

JBS MERCOSUL
Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business
Operational Platform

Brazil

56,000 employees
PA

AM

40,490 bovines per day

92% in Brazil, 3% in Argentina, 3% in

Paraguay and 2% in Uruguay

82,000 hides per day

AC

RO
1

MA

1
2

MT
4

11

2
3

3
1
7

01 facility in Argentina, China,

Germany, Mexico, Uruguay and
Vietnam

40 beef processing facilities

PE

2
1

4 GO
3

2
1
2

8
2
1
3

BA

1
1

16 facilities in Brazil

CE

03 feedlots

MG

16 tanneries

MS
1

PR

02 facilities in Italy

1
1
1

RS

RJ

33 distribution centers

SP

SC

Main Brands

34 distribution centers
10 central and 23 regional in Brazil
and 01 in Argentina

01 beef processing facilities

02 case ready facilities
01 distribution center
01 tannery

Argentina
Leadership in beef production

08 related businesses
Biodiesel
Can making

Paraguay
JBS is the leader in beef processing and has around 25% of market share in
exports of Paraguay

Collagen

Uruguay

JBS Carriers / TRP

Great access to export markets

Trading
Hygiene and Clean
Casings
Recycling

Net Revenue LTM 3Q16 R$28.5 billion

02 beef processing facility

01 beef processing
01 tannery

EBITDA LTM 3Q16

R$2.5 billion
8.7% Margin
11

JBS USA BEEF

Beef production in the United States, Canada and Australia
Operational Platform

United States

+34,000 employees
WI

~42,930 bovines per day

ID

1
1

~28,730 in the US

NE

UT

~4,200 in Canada

CO

2
1

KS
OK
1

12,900 hides per day

11 feedlots

AZ

09 beef processing facilities

PA

1
1
4

~10,000 in Australia

MI

01 tannery

1
1

TX

5,000 in the US

06 carriers units

7,900 in Australia

Main Brands

17 feedlots (bovine)
Australia and New Zealand

11 in the US/ Capacity of 900,000

01 in Canada / Capacity of 75,000

7
2

bovines

05 in Australia / Capacity of 150,000

bovines

08 distribution centers

bovines

1
1

Leadership in beef exports

Leadership in the processing of lamb
(23,800 lamb per day)
#1st in the Food Industry Ranking

Note 1. Source: Food&Drink Business Magazine

09 bovine, 05 lamb and 01 hogs

05 feedlots
01 tannery
08 distribution centers
08 case ready facilities
07 in Australia and 01 in New Zealand

Canada
Growth in revenues from 2014 to 2015

07 DCs in Australia, 01 in New

Zealand and 06 carriers units in the
US

15 processing facilities

Net Revenue LTM 3Q16

US$20.5 billion

01 beef processing facility

01 feedlot (bovine)
01 trading

EBITDA LTM 3Q16

US$56.9 million
0.3% Margin
12

JBS USA PORK

Pork production in the United States
Operational Platform

United States

+11,000 employees

~ 90,000 hogs per day

MN
1

100% in the US
IA

2
1

IL

03 case ready facilities

05 hog processing units

MO

Convenience products

CA
OK

KY

NC
1

03 consumer ready facilities

AR
1
1

05 feed mills

TX

Products

02 genetic units

Swift Premium
Dry Rubbed Ribs

Swift Premium
Boneless Backrib

Swift Premium
Rubbed Loin Filet

Swift Premium
Boneless Pork Chops

Main Brands

Net Revenue LTM 3Q16

US$5.1 billion

EBITDA LTM 3Q16

US$569.2 million
11.2% Margin
13

JBS USA CHICKEN (PPC)

Poultry production in the United States, Porto Rico and Mexico
Operational Platform

United States

+40,000 employees

~ 7.3 million birds per day

6.2 million in the US

23 processing facilities

WV

66,000 in Porto Rico

1.1 million in Mexico

KY

TN

AR
1

TX
4

LA

VA

04 case ready facilities

NC

AL

22 distribution centers

1
1

SC
1

GA
6
1

21 located in Mexico
1 located in Porto Rico

Main Brands

FL
1

+ 3,500 contract growers

39 hatcheries

Mexico

30 feed mills

With Tyson acquisition, PPC now have an additional of three

facilities, adding 600,000 birds per day of capacity and 5,400
employees

Porto Rico

06 poultry processing facilities

21 distribution centers

01 processing facility
01 distribution center

Net Revenue LTM 3Q16

US$8.0 billion

EBITDA LTM 3Q16

US$877.0 million
11.0% Margin
14

JBS EUROPE
Poultry and Convenience Products in Europe
Operational Platform

Europe

10,000 employees

750,000 birds per day

In Natura

100% in UK

Convenience and Value Added UK

240,000 tons of products

per year

Convenience and Value Added Europe

Poultry Breeding Grounds

Rigamonti

Presence in UK, France, Netherlands

and Ireland

+ 750 contract growers

Main Brands

15

CONSOLIDATED RESULTS
3Q16
16

3Q16 CONSOLIDATED HIGHLIGHTS

NET SALES (R$ MILLION)

GROSS PROFIT (R$ MILLION)

Gross Margin (%)

43,029

41,166

14.5%

13.0%

6,245

-4.3%

5,344
-14.4%

3Q15

3Q16

3Q15

3Q16

17

3Q16 CONSOLIDATED HIGHLIGHTS

EBITDA (R$ MILLION)

NET INCOME (LOSS) (R$ MILLION)

EBITDA Margin (%)

EPS (R$)

8.9%

7.6%

1.19
0.32

3,834

3,441
-18.0%

3,144
-74.2%

887

3Q15

3Q16

3Q15

3Q16

18

3Q16 CONSOLIDATED HIGHLIGHTS

NET OPERATING CASH FLOW (R$ MILLION)

FREE CASH FLOW (R$ MILLION)

782

3,015
-39.2%

3Q15

1,832

3Q15

3Q16

3Q16

-8,508

19

3Q16 CONSOLIDATED HIGHLIGHTS

NET DEBT (R$ MILLION) / LEVERAGE
Leverage

2.55x

3.18x

3.84x

47,038.7

48.745,4

4Q15

1Q16

4.10x
49,177.7

4.32x

48,855.2

41,707.1

3Q15

2Q16

3Q16

20

DEBT PROFILE 3Q16

BREAKDOWN BY CURRENCY
AND COST

BREAKDOWN BY SOURCE

BREAKDOWN BY COMPANY

14.45% p.a.
R$
8.3%
Commercial
Banks
59.4%
Capital
Markets
40.5%

US$
91.7%

5.20% p.a.

BNDES 0.1%

DEBT PROFILE ST/LT

Short Term
3Q15

29%

JBS USA
44.2%

JBS S.A.
46.8%

Seara
9.0%

SHORT TERM DEBT BREAKDOWN BY TYPE

Long Term

71%

4Q15

32%

68%

1Q16

33%

67%

2Q16

32%

68%

3Q16

31%

69%

Working
Capital
17.0%

Others Bonds
6.0% 4.0%

Trade
Finance
73.0%

21

PERFORMANCE BY BUSINESS UNIT

3Q16
22

Seara (R$)
Net Revenue (billion)

5.0

5.4
4.3

JBS Mercosul (R$)

EBITDA (million) and % EBITDA

4.6

4.6

20.7% 17.3%

1,040.0

13.5%

7.1

7.0

5.8

5.3

4.6

5.2

6.8

3Q15 4Q15 1Q16 2Q16 3Q16

3Q15 4Q15 1Q16 2Q16 3Q16

3.4%

Net Revenue (billion)

5.0%

1.3

1.1

0.5%

-0.5%

1.4

JBS USA Chicken PPC (US$)

2.0

2.0

2.0

EBITDA (million) and % EBITDA

2.0
274.3

3Q15 4Q15 1Q16 2Q16 3Q16

457.2

339.0

6.2%

7.6%

150.0

13.0%

8.1% 10.0%

141.3

136.9

14.0%

0.8

3Q15 4Q15 1Q16 2Q16 3Q16

13.0%

761.4

EBITDA (million) and % EBITDA

1.4

48.4

-25.2 -214.8 27.0

2.1

5.0%

3Q15 4Q15 1Q16 2Q16 3Q16

269.9

196.8

Net Revenue (billion)

921.1

JBS USA Pork (US$)

-4.6%

3Q15 4Q15 1Q16 2Q16 3Q16

10.9%
6.3%

640.8

382.0 334.8

EBITDA (million) and % EBITDA

5.4

9.0%

7.2

JBS USA Beef (US$)

Net Revenue (billion)

EBITDA (million) and % EBITDA

12.3%

7.5

926.4
579.5

3Q15 4Q15 1Q16 2Q16 3Q16

8.3% 7.3%

Net Revenue (billion)

3Q15 4Q15 1Q16 2Q16 3Q16

3Q15 4Q15 1Q16 2Q16 3Q16

JBS Europe - Moy Park ( - pounds sterling)

Net Revenue (million)

11.9% 13.9% 10.4%

350.7

352.8

233.5 282.7 210.8

3Q15 4Q15 1Q16 2Q16 3Q16

102.1

188.9

3Q15

3Q16

EBITDA (million) and % EBITDA

7.6%

8.9%

26.8

31.4

3Q15

3Q16

23

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.

24