JBS S.A. A GLOBAL FOOD COMPANY 3Q17 Earnings Presentation São Paulo

Transcription

1 JBS S.A. A GLOBAL FOOD COMPANY Earnings Presentation São Paulo

2 CONSOLIDATED HIGHLIGHTS Record EBITDA of R$4.3 billion* Record free cash flow of R$3.2 billion EBITDA was R$4.3 billion with EBITDA margin up from 7.6% in to 10,5% in.* Net income was R$1.9 billion excluding the effects of PERT. Reported net income was R$323.0 million. Free cash flow was R$3.2 billion, an increase of 312.1% compared with. Net debt reduction of R$4.8 billion. Leverage reduced to 3.42x in from 4.16x in 2Q17. Total liquidity increased to R$17.4 billion. *Adjusted to exclude impact from the adherence to Special Tax Regularization Program (PERT). 2

3 Business Units

4 SEARA Production of prepared foods and fresh poultry and pork products in Brazil Net Revenue (R$ million) EBITDA (R$ million) 4, , % 7.3% 11.1% % Increase in volumes in the domestic market. Customer base at the end of was 150,000, an increase of 7 thousand customers when compared to the same period last year. Reduction in exported volume, partially offset by higher prices. Increase in EBITDA boosted by decline in raw material costs, mainly grains. Innovation continuity and launching of new products. 4

5 JBS BRAZIL Beef production in Brazil, in addition to leather and related business Net Revenue (R$ million) EBITDA (R$ million) 6, % 5.0% 1.4% 5, % 72.5 Decline in revenue mainly due to the sale of beef operations in Mercosul and decrease in slaughter in Brazil. Focus on channels and cuts with higher profitability, improving the value of the products mix, which provided a 11.7% increase in beef prices in the domestic market. Reduction in exported volume, partially offset by higher prices. Reduction in EBITDA, impacted by a decrease in the number of animals slaughtered, while maintaining operational capacity. 5

6 JBS USA BEEF Beef production in the United States, Canada and Australia Net Revenue (US$ million) 5, % 5,533.7 EBITDA (US$ million) 5.0% 7.3% % Swift (bolinha) e Primo Increase in revenue, with higher volumes and prices in the export market. Growth in domestic demand in the US and higher cattle availability. Focus on operational improvements, with strong commercial relationships and product mix. Australia results impacted this business unit results. The cycle of rebuilding the Australian herd continues, with heifer retention impacting cattle availability in the short term. Primo Smallgoods results were as expected for this quarter. 6

7 JBS USA PORK Pork and value added production in the United States Net Revenue (US$ million) 25.0% 1,690.4 EBITDA (US$ million) 14.0% 15.1% , % Increase in net revenue in the domestic market, boosted by a strong demand. Growth in exports revenue, with Asian countries, Canada and Mexico being the main highlights. Increase in EBITDA, due to greater availability of hogs to process, thanks to a 3% increase in the US hog productions. Efficiency improvement in the facilities acquired in The Company successfully integrated Plumrose, which was acquired in 2Q17. 7

8 PILGRIM S PRIDE Poultry production in the United States, Mexico, Puerto Rico, UK and Continental Europe Net Revenue (US$ million) EBITDA (US$ million) 12.0% 2, , % 16.6% % Increase in net revenue due to the integration of GNP assets and an increase in poultry sales prices. Growth in volumes and prices in Mexico. In UK and Continental Europe, revenue increased due to higher volumes. Increase in EBITDA due to robust performance of PPC domestic and international operations, with a strong demand for poultry in the markets that the Company is present, coupled with stable costs. 8

9 Consolidated Results

10 CONSOLIDATED HIGHLIGHTS Net Revenue (R$ million) Gross Profit (R$ million) 16.7% Gross Margin (%) 13.0% 41,166 41, % Net Revenue in was R$41.1Bn Stable 5, % 6,852 Gross Profit in was R$6.9Bn Gross Margin increased from 12.1% in to 14.8% in EBITDA (R$ million) Net Income (R$ million) 7.6% 3, % 10.5% 4,319 EBITDA Margin (%) EBITDA in was R$4.3Bn EBITDA margin increased from 6.6% in to 9.0% in EPS (R$) , % *Excluding the effect of PERT, net income was R$1.9Bn Reported net income was R$323mn with EPS of R$0.12 * 10

11 CONSOLIDATED HIGHLIGHTS Operational Cash Flow (R$ million) Free Cash Flow (R$ million) 2,782 3,223 1, % 312.1% 782 Cash provided by operating activities in was R$2.8Bn Free cash generation in was R$3.2Bn 11

12 CONSOLIDATED HIGHLIGHTS Net Debt (R$ million) / Leverage Reduction of R$4.8Bn in net debt and leverage down from 4.16x in 2Q17 to 3.42x in. 4.32x 4.16x 4.23x 4.16x Cash at the end of was 3.42x R$14.1Bn In addition, JBS USA has a US$1,037.9 million (R$3,288.1 million)¹ fully available unencumbered line under revolving credit facilities. 48,855 46,905 47,806 50,376 45,539 Total liquidity increased to R$17.4Bn 4Q16 1Q17 2Q17 Leverage Note 1: converted to the exchange rate prevailing at the end of the quarter 12

13 DEBT PROFILE Breakdown by Currency and Cost Breakdown By Source 9.87% p.a R$ 6.0% US$ 94.0% 5.21% p.a Commercial Banks 62.5% Capital Markets 37.5% Breakdown by Company Debt Profile ST/LT Seara 9.6% Working Capital 12.0% JBS USA 54.1% LT 73.0% ST 27.0% Trade Finance 73.0% Others 13.0% Bonds 2.0% JBS S.A. 36.3% 13

14 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 Listen. Be helpful and thoughtful. Act with respect. Prioritize the team over yourself. Value the opinion of others.t 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. 14

15 Mission To be the best in all that we do, completely focused on our business, ensuring the best products and services to our customers, a relationship of trust with our suppliers, profitability for our shareholders and the opportunity of a better future for all of our team members.

16 DISCLAIMER We make statements about future events that are subject to risks and uncertainties. Such statements are based on the beliefs and assumptions of our Management and information to which the Company currently has access. Statements about future events include information about our current intentions, beliefs or expectations, as well as those of the members of the Company's Board of Directors and Officers. Disclaimers with respect to forward-looking statements and information also include information on possible or presumed operating results, as well as statements that are preceded, followed or that include the words "believe," "may," "will," "continue," expects," "predicts," "intends," "plans," "estimates," or similar expressions. Forward-looking statements and information are not guarantees of performance. They involve risks, uncertainties and assumptions because they refer to future events, depending, therefore, on circumstances that may or may not occur. Future results and shareholder value creation may differ materially from those expressed or implied by the forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 16