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    1Q16 Earnings Presentation

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    JBS RI
    This document provides a summary of the financial results and performance of JBS, a global food company, for the first quarter of 2016. Key highlights include a 29.8% increase in net revenue compared to Q1 2015, impacted by expansion in beef operations in Brazil and acquisitions in pork. EBITDA declined due to losses in North American beef operations from cattle purchasing positions. The net loss was compressed by foreign exchange variation results. Operational cash flow and free cash flow were also negative due to these FX impacts. Business units like JBS Foods and JBS USA Pork grew revenue while margins declined at JBS USA Beef, Chicken, and Mercosul due to market factors.

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    1Q16 Earnings Presentation

    Uploaded by

    JBS RI
    28 views18 pages
    This document provides a summary of the financial results and performance of JBS, a global food company, for the first quarter of 2016. Key highlights include a 29.8% increase in net revenue compared to Q1 2015, impacted by expansion in beef operations in Brazil and acquisitions in pork. EBITDA declined due to losses in North American beef operations from cattle purchasing positions. The net loss was compressed by foreign exchange variation results. Operational cash flow and free cash flow were also negative due to these FX impacts. Business units like JBS Foods and JBS USA Pork grew revenue while margins declined at JBS USA Beef, Chicken, and Mercosul due to market factors.

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    This document provides a summary of the financial results and performance of JBS, a global food company, for the first quarter of 2016. Key highlights include a 29.8% increase in net revenue compared to Q1 2015, impacted by expansion in beef operations in Brazil and acquisitions in pork. EBITDA declined due to losses in North American beef operations from cattle purchasing positions. The net loss was compressed by foreign exchange variation results. Operational cash flow and free cash flow were also negative due to these FX impacts. Business units like JBS Foods and JBS USA Pork grew revenue while margins declined at JBS USA Beef, Chicken, and Mercosul due to market factors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views18 pages

    1Q16 Earnings Presentation

    Uploaded by

    JBS RI
    This document provides a summary of the financial results and performance of JBS, a global food company, for the first quarter of 2016. Key highlights include a 29.8% increase in net revenue compared to Q1 2015, impacted by expansion in beef operations in Brazil and acquisitions in pork. EBITDA declined due to losses in North American beef operations from cattle purchasing positions. The net loss was compressed by foreign exchange variation results. Operational cash flow and free cash flow were also negative due to these FX impacts. Business units like JBS Foods and JBS USA Pork grew revenue while margins declined at JBS USA Beef, Chicken, and Mercosul due to market factors.

    Copyright:

    © All Rights Reserved
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    of 18

    1Q16 EARNINGS

    PRESENTATION

    A GLOBAL
    FOOD
    COMPANY
    So Paulo, May 12th, 2016

    CONSOLIDATED RESULTS
    1Q16
    2

    1Q16 CONSOLIDATED HIGHLIGHTS


    NET SALES (R$ MILLION)

    GROSS PROFIT (R$ MILLION)


    43,912

    Gross Margin (%)


    14.1%

    33,819

    10.8%

    4,778

    29.8%

    4,764
    -0.3%

    1Q15

    1Q16

    1Q15

    1Q16

    | Expansion in net revenue of 29.8% compared to 1Q15.


    | Stable gross profit over 1Q15.

    1Q16 CONSOLIDATED HIGHLIGHTS


    EBITDA (R$ MILLION)

    NET INCOME (LOSS) (R$ MILLION)

    EBITDA Margin (%)

    8.2%
    4.9%

    2,758

    -22.5%

    1,394
    1Q15

    1Q16

    2,137
    -2,741

    1Q15

    1Q16

    | Reduction in EBITDA impacted by Beef operations in North America.


    | Loss in the quarter of R$2.7 billion, compressed by the FX variation results.

    1Q16 CONSOLIDATED HIGHLIGHTS


    OPERATIONAL CASH FLOW (R$ MILLION)

    FREE CASH FLOW (R$ MILLION)

    4,538
    1Q15

    1Q15

    1Q16

    1Q16

    -72

    -4,447
    -5,208

    | Operational cash flow of R$4.4 billion negative and free cash flow of R$5.2 billion
    negative, impacted by the results with instruments related to protection against
    exchange rate variation.

    1Q16 CONSOLIDATED HIGHLIGHTS


    RECORD OF FX VARIATION RESULTS AND JBS HEDGING POLICY (R$ Million)

    1Q15

    2Q15

    3Q15

    4Q15

    1Q16

    Results of
    the last five
    quarters

    Results of FX
    variations

    -3,757.0

    361.4

    -6,074.7

    245.4

    1,854.0

    -7,370.9

    Derivative Results

    4,489.0

    -2,005.6

    9,455.7

    -1,335.8

    -5,823.1

    4,780.2

    Net Results of FX
    variations and
    Derivatives

    732.0

    -1,644.2

    3,381.1

    -1,090.4

    -3,969.1

    -2,590.6

    -7,370.9

    4,780.2

    -2,590.6

    Resultado da variao cambial

    1Q16 CONSOLIDATED HIGHLIGHTS


    NET DEBT (US$ MILLION)

    NET DEBT (R$ MILLION) / LEVERAGE


    Leverage
    Adjusted Leverage

    2.29x

    2.46x

    33,221.1

    34,824.1

    1Q15

    2Q15

    3.84x

    3.18x

    3.60x

    47,038.7

    48,745.4

    4Q15

    1Q16

    2.55x

    41,707.1

    13,696.8
    10,355.7 11,224.2 10,497.9 12,046.4

    1Q15

    2Q15

    3Q15

    4Q15

    1Q16

    3Q15

    | Cash Position 1Q16: R$15,287.2 million

    RECENT INVESTMENTS IN ACQUISITIONS AND INCREMENTAL EBITDA CONSIDERED TO CALCULATE


    PROFORMA EBITDA

    Total investment in acquisitions from 1Q15 to 1Q16: R$21 billion


    Incremental EBITDA in the last 12 months: ~R$1.0 billion

    Note 1. Leverage considers the proforma results of recent acquisitions (Company estimates)

    1Q16 CONSOLIDATED HIGHLIGHTS


    BREAKDOWN BY CURRENCY
    AND COST

    BREAKDOWN BY SOURCE

    BREAKDOWN BY COMPANY

    14.63% p.a.
    R$
    9%

    Commercial
    Banks
    Capital
    58.87%
    Markets
    41.10%

    US$
    91%

    5.00% p.a.

    JBS USA
    45%

    JBS S.A.
    46%

    JBS Foods
    9%

    BNDES
    0.03%

    MATURITY (R$ MILLION)


    17,841
    10,028
    5,547

    Short Term
    Note 1. Net of Cash

    3,109

    4,087

    2017

    2018

    5,958
    2,175
    2019

    2020

    2021

    After 2021
    8

    1Q16 CONSOLIDATED HIGHLIGHTS


    DEBT PROFILE ST/LT
    1Q15
    2Q15
    3Q15

    29%

    SHORT TERM DEBT BREAKDOWN BY TYPE


    71%

    33%

    67%

    29%

    Working
    Capital
    13%

    Others
    8%

    Bonds
    7%

    71%

    4Q15

    32%

    68%

    1Q16

    33%

    67%
    Short Term

    Long Term

    Trade
    Finance
    72%

    BUSINESS UNITS
    1Q16
    10

    JBS FOODS 1Q16


    NET REVENUE (R$ MILLION)

    EBITDA (R$ MILLION)


    15.9%

    13.5%

    4,286.6

    3,874.5

    616.0
    -5.9%

    10.6%

    1Q15

    579.5

    1Q16

    1Q15

    1Q16

    | Growth in revenue due to increase in sales prices and volumes.


    | Market share evolution in all product categories assessed by Nielsen.
    | Increase in production costs impacted EBITDA margin.
    | New visual identity and renewal of packaging of Seara brand.

    11

    JBS MERCOSUL 1Q16


    NET REVENUE (R$ MILLION)

    EBITDA (R$ MILLION)


    10.9%

    6,983.4

    6,782.3

    5.6%

    761.4

    3.0%

    376.4

    1Q15

    1Q16

    102.3%

    1Q15

    1Q16

    | Increase in sales prices of fresh beef in domestic and international


    markets.
    | Reduction in the number of livestock processed.
    | Increase of exports, boosted by the Chinese market, which
    presented an increase of 200% in 1Q16 compared with 1Q15.

    12

    JBS USA BEEF 1Q16


    NET REVENUE (US$ MILLION)

    EBITDA (US$ MILLION)

    5,190.5
    4,649.6

    3.6%
    -4.6%

    186.6

    -10.4%

    Swift
    (bolinha) e
    Primo

    1Q15

    1Q16

    1Q15

    1Q16
    -214.8

    | Mark-to-market position of physical cattle purchase in the US and


    Canada.
    | Decrease in the number of livestock processed in Australia.
    | Reduction in prices of fresh beef both in domestic and international
    markets.
    | Appreciation of AUD vs. USD.
    13

    JBS USA PORK 1Q16


    NET REVENUE (US$ MILLION)
    1,256.6

    EBITDA (US$ MILLION)


    12.2%
    8.1%

    762.3

    64.8%

    102.1

    93.2
    9.5%

    1Q15

    1Q16

    1Q15

    1Q16

    | Expansion of revenue due to incorporation of Cargill Pork assets,


    acquired in 2015.
    | Increase in exports, mainly to the Asian market.
    | Integration of Cargill Pork

    14

    JBS USA CHICKEN (PPC) 1Q16


    NET REVENUE (US$ MILLION)

    EBITDA (US$ MILLION)


    17.7%

    2,052.9

    1,962.9
    -4.4%

    1Q15

    11.9%

    363.5
    -35.8%

    1Q16

    1Q15

    233.5

    1Q16

    | Reduction in sales prices in the US and in international market.


    | Increase in sales in Mexico, boosted by the acquisition of assets in
    the region.
    | Conversion of one facility in the US to produce USDA-certified
    organic chicken.
    | Distribution of special dividends in the amount of US$700.0 million.
    15

    JBS EUROPE (MOY PARK) 1Q16


    NET REVENUE ( MILLION)
    353.2

    347.5
    -1.6%

    EBITDA ( MILLION)
    8.8%

    8.0%

    30.6

    28.2
    8.2%

    1Q15

    1Q16

    1Q15

    1Q16

    | Decrease in sales prices, offset by an increase in volume sold in UK


    and Ireland.
    | Improved operational efficiency with focus on cost control.
    | Synergies capturing due to integration with JBS.

    16

    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.

    17

    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.

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