JBS S.A. A GLOBAL FOOD COMPANY. Institutional Presentation Including 1Q17 Results

Transcription

1 JBS S.A. A GLOBAL FOOD COMPANY Institutional Presentation Including Q7 Results

2 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.

3 JBS AT A GLANCE Net Revenue of R$64. billion LTMQ7 Second largest global food company¹ Global and diversified platform Value added product portfolio with brands High performance team with more than 35 thousand employees Source : Bloomberg Focus on operational excellence 3

4 A GLOBAL COMPANY An Exclusive Global Production and Sales Platform 3% CANADA EUROPE RUSSIA % 5% 50% USA ASIA 4% MEXICO 4% AFRICA & MIDDLE EAST 3% South Am/ OTHERS % BRAZIL 5% As % of Total Revenue¹ Production footprint OCEANIA 3% Note. Revenues by region include domestic sales and imports. 4

5 EVOLUTION From a Brazilian beef company in 007 to a Global food company 9,000 EMPLOYEES IPO JBS SA Net Revenue: R$4. bi 007 BERTIN CARGILL PORK 05 35,000 EMPLOYEES Net Revenue: R$3.9 bi Net Revenue: R$30.3 bi EXPANSION IN USA AND AUSTRALIA Net Revenue: R$54.7 bi ACQUISITIONS: TYSON IN BRAZIL AND MEXICO Net Revenue: R$70.4 bi 5

6 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 +50 countries +300 production units in +5 countries 6

7 CONSOLIDATED EXPORTS Exports Breakdown in Q7 and Q6 Others.% Greater China¹ 0.6% Singapore.6% Russia 5.% South America 5.% Q7 US$ 3,5.0 million Africa & Middle East 3.5% Canada.8% Mexico 3.4% Russia 4.6% South Korea 6.6% Others 8.8% Q6 US$3,58.9 million South America 0.4% Greater China¹ 4.7% Mexico 6.% E.U. 7.4% South Korea 7.5% USA 8.4% Japan.5% E.U. 7.8% Japan 9.6% USA 0.0% Africa & Middle East.3% Note : Considers China & Hong Kong 7

8 BUSINESS UNITS 8

9 SEARA Leading producer of prepared foods (PFPs) and fresh poultry and pork products Operational Platform 5.7 million birds per day Brazil + 7,000 employees Production units located in the south, southeast and mid-west regions,00 hogs per day Production units located in the south and mid-west regions 7,000 tons per month MT MS 7 PR DF MG 3 RJ SP 4 3 BA CE 3 PE 3 slaughterhouses and deboning units 08 slaughterhouses and deboning units 0 PFP units 3 distribution centers Production units located in the south, southeast, northeast and mid-west regions RS 5 7 SC distribution centers In states Main Brands Net Revenue LTM Q7 R$8.0 billion EBITDA LTM Q7 R$. billion 6.9% Margin 9

10 JBS MERCOSUL Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business Operational Platform 40,00 bovines per day 86% in Brazil, 5% in Argentina, 7% in Paraguay and % in Uruguay 84,000 hides per day 6 facilities in Brazil 0 facility in Argentina, Germany, Mexico, Uruguay and Vietnam 0 facilities in Italy 3 distribution centers Brazil AM PA 4 AC RO MT PE BA GO 7 3 MG 7 MS RJ 3 PR 3 SP RS SC CE Main Brands + 54,000 employees 36 beef processing facilities 03 feedlots 6 tanneries 30 distribution centers 0 central and 0 regional in Brazil and 0 in Argentina 08 related businesses Biodiesel Can making Collagen JBS Carriers / TRP Trading Hygiene and Clean Casings Recycling Argentina Leadership in beef production Paraguay JBS is the leader in beef processing and has around 5% of market share in exports of Paraguay Uruguay Great access to export markets Net Revenue LTM Q7 R$7.4 billion EBITDA LTM Q7 0 beef processing facilities 0 case ready facilities 0 distribution center 0 tannery 03 beef processing facility 0 beef processing 0 tannery R$.0 billion 3.6% Margin 0

11 JBS USA BEEF Beef production in the United States, Canada and Australia Operational Platform United States + 33,000 employees WI ~43,400 bovines per day ID ~9,000 in the US UT ~4,00 in Canada CO ~0,00 in Australia 4 PA KS OK AZ TX 5,000 in the US 3 GA 7,900 in Australia 09 beef processing facilities 0 tannery feedlots,900 hides per day MI NE 06 carriers units Main Brands 7 feedlots (bovine) 4 in the US/ Capacity of 900,000 bovines 3 0 in Canada / Capacity of 75,000 bovines 4 05 in Australia / Capacity of 50,000 bovines 08 distribution centers Australia and New Zealand Leadership in beef exports Leadership in the processing of lamb (3,800 lamb per day) #st in the Food Industry Ranking¹ Canada Growth in revenues from 04 to 05 Note. Source: Food&Drink Business Magazine Net Revenue LTM Q7 09 bovine, 05 lamb and 0 hogs 05 feedlots 0 tannery 08 distribution centers 08 case ready facilities 07 in Australia and 0 in New Zealand 07 DCs in Australia, 0 in New Zealand and 06 carriers units in the US 5 processing facilities US$0.8 billion 0 beef processing facility 0 feedlot (bovine) 0 trading EBITDA LTM Q7 US$868 million 4.% Margin

12 JBS USA PORK Pork production in the United States Operational Platform United States +0,000 employees ~ 90,000 hogs per day 00% in the US 07 case ready facilities 5 feed mills CA OK AR MN IA IL MS IN KY NC VT 05 hog processing units 07 consumer ready facilities 0 distribution centers Products 0 genetic units Swift Premium Dry Rubbed Ribs Swift Premium Boneless Backrib Main Brands Swift Premium Rubbed Loin Filet Swift Premium Boneless Pork Chops Net Revenue LTM Q7 US$5.5 billion EBITDA LTM Q7 US$657 million.0% Margin

13 JBS USA CHICKEN (PPC) Poultry production in the United States, Porto Rico and Mexico Operational Platform ~ 7.8 million birds per day United States MN WI +4,000 employees 6.6 million in the US 66,000 in Porto Rico. million in Mexico distribution centers 0 located in Mexico located in Porto Rico TX 4 AR LA KY TN AL 3 NC SC GA 6 FL WV VA Main Brands 5 processing facilities 05 case ready facilities + 3,500 contract growers 39 hatcheries Mexico 34 feed mills 6 With Tyson acquisition, PPC now have an additional of three facilities, adding 600,000 birds per day of capacity and 5,400 employees 06 poultry processing facilities 0 distribution centers Porto Rico 0 processing facility 0 distribution center Net Revenue LTM Q7 US$8.0 billion EBITDA LTM Q7 US$870 million 0.9% Margin 3

14 JBS EUROPE Poultry and Convenience Products in Europe Operational Platform Europe +,000 employees 760,000 birds per day 00% in UK 50,000 tons of products per year Presence in UK, France, Netherlands and Ireland and Italy (Rigamonti) In Natura Convenience and Value Added UK Convenience and Value Added Europe Poultry Breeding Grounds Rigamonti contract growers Main Brands Net Revenue LTM Q7.5 billion EBITDA LTM Q7 3 million 9.0% Margin 4

15 EVOLUTION BY BUSINESS UNIT 5

16 Seara (R$) JBS Mercosul (R$) Net Revenue (billion) EBITDA (million) and % EBITDA Net Revenue (billion) EBITDA (million) and % EBITDA % % 7.3% 6.4% 5.3% % % 5.0%.0% % Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 JBS USA Beef (US$) JBS USA Pork (US$) Net Revenue (billion) EBITDA (million) and % EBITDA Net Revenue (billion) EBITDA (million) and % EBITDA % 7.3% %.3 8.% 0.0% 4.0%.5%.4% 0.5% -4.6% Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 JBS USA Chicken PPC (US$) JBS Europe - Moy Park ( - pounds sterling) Net Revenue (billion) EBITDA (million) and % EBITDA Net Revenue (million) EBITDA (million) and % EBITDA % 3.9% 0.4% 9.0% 0.% % 9.% 8.9% 9.8% 8.% Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 Q6 Q6 3Q6 4Q6 Q7 6

17 CONSOLIDATED RESULTS Q7 7

18 Q7 CONSOLIDATED HIGHLIGHTS NET SALES (R$ MILLION) 43,9-4.3% 37,66 GROSS PROFIT (R$ MILLION) Gross Margin (%) 0.8%.8% 4,764-7.% 4,4 Q6 Q7 Q6 Q7 EBITDA (R$ MILLION) NET INCOME (R$ MILLION) EBITDA Margin (%) 4.9% 5.7% 4 0.%,37,4 Q6 Q7 -,74 Q6 Q7 8

19 Q7 CONSOLIDATED HIGHLIGHTS NET DEBT (R$ MILLION) / LEVERAGE Leverage 3.84x 4.0x 4.3x 4.6x 4.0x 48,745 49,78 48,855 46,905 47,806 Q6 Q6 3Q6 4Q6 Q7 The Company ended the quarter with R$0.7 billion in cash. JBS net debt was R$47.8 billion at the end of Q7. Adjusted leverage including the LTM results of GNP was 4.0x. 9

20 DEBT PROFILE Q7 BREAKDOWN BY CURRENCY AND COST BREAKDOWN BY SOURCE BREAKDOWN BY COMPANY.45% p.a. R$ 7.8% US$ 9.% Commercial Banks Capital 6.% Markets 37.8% JBS USA 47.0% JBS S.A. 4.5% 5.% p.a. DEBT PROFILE ST/LT Short Term Long Term Q6 Q6 3Q6 4Q6 Q7 33% 3% 3% 3% 3% 67% 68% 69% 68% 69% BNDES 0.% SHORT TERM DEBT BREAKDOWN BY TYPE Working Capital 6% Others 8% Bonds % Trade Finance 74% Seara.5% 0

21 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.