2Q15 Results Presentation August 14th A Global Food Company

Transcription

1 Results Presentation August 14th 2015 A Global Food Company

2 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 Company s 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. 2

3 Consolidated Results 3

4 Consolidated Highlights Consolidated Net Sales (R$ Million) Consolidated EBITDA (R$ Million) 38,905 EBITDA Margin (%) 8.4% 9.2% 28,969 3,577 2, % 47.0% Revenue growth of 34.3%. EBITDA growth of 47.0% (more than Revenues). 80 bps expansion in EBITDA margin over. 4

5 Consolidated Highlights Consolidated Net Income (R$ Million) Cash Generation (R$ Million) Earnings per share (R$) % Net Income affected by FX hedging expenses. Cash generation increase of 358.4% over. Hedging strategy continues to be effective, though negative in. 5

6 Consolidated Highlights Net Debt (US$ Million) Net Debt (R$ Million) / Leverage 11,221 11,224 Net Debt 3.2x 24,714 Leverage (x) Adjusted Leverage* 2.4x 2.3x 34,824 Stable USD Net Debt over. Leverage was 2.4x in and adjusted leverage was 2.3x. *Considering the pro-forma results from the acquisitions made since 2H14 (Tyson in Brazil and Mexico, Big Frango, Céu Azul and Primo Group), of R$1.0 billion incremental EBITDA, leverage would be 2.3x. 6

7 Revenue Breakdown by Location and Currency 84% of JBS net revenue is in US$ JBS USA 69.8% US$ 48% JBS Mercosul 18.7% Revenue in R$ 16% US$ 100% R$ 52% US$ 55% R$ 45% JBS Foods 11.5% Revenue in US$ 84% Moy Park and Cargill Pork are not included 7

8 JBS Historical Performance LTM, JBS reached R$137.8 billion in net revenue, EBITDA of R$13.2 billion, equivalent to an EBITDA margin of 9.6%. Updating the results using FX at the end of and adding pro-forma revenue and results from recent acquisitions (Tyson in Brazil and Mexico, Big Frango, Céu Azul and Primo Group) EBITDA LTM was R$15.2 billion and net revenue reached R$160 billion. 9.2% 9.6% 4.3% 3.8% 3.7% 5.5% 5.0% 5.8% 6.6% LTM2T15 Net Revenue (R$ billion) EBITDA (R$ billion) EBITDA Margin(%) 8

9 Business Units 9

10 JBS Foods % NR JBS S.A. 47% 19% 12% Net Revenue (R$ Million) EBITDA (R$ Million) 4, % 3, % % 79.3% Strong revenue growth, organic and inorganic. EBITDA Margin expansion to 17.7% in. Revenue growth of 29.9% from PFPs in the domestic Market. Continuous improvement in quality indicators, level of service and execution. Client base enlargement in small and medium retail. Successful international strategy. 10

11 JBS Foods Domestic Market External Market Seara Presence in Retail Size of the Brazilian and its Growth (k tons) (1) JBS Foods Market Share Gain ( (2) % -0.4% p.p p.p % % p.p p.p. 1S14 1S15 Frozen Products Processed Products Margarines Pizzas Source: AC Nielsen (1) Processed Products + Margarines 1S (Jan-Jun) 2S Jul-Dec / Frozen Products +Pizzas: 1S (Dez-May) 2S (Jul-Nov) (2) Includes Excelsior. Pizzas and Processed Products May/Jun14 x May/Jun15 and Fronzen Products and Margarines Abr//May14 x Apr//Ma15 Innovation Launching of 46 new SKUs 11

12 JBS Mercosul % NR JBS S.A. 19% Net Revenue (R$ Million) 6, , % EBITDA (R$ Million) 5.2% 14.5% % Margin compression due to shortage of cattle supply and expressive reduction in Brazilian exports. Highlight of the quarter was the industrialized/further processed category, which posted increase in volume and prices in both the domestic and external markets. Investments in marketing and product portfolio innovation. Improved supply and demand balance and recovery of exports to major markets will be positive for the Company in the coming quarters. 12

13 JBS USA Beef (including Australia and Canada) % NR JBS S.A. 47% 6% 16% 19% 12% Net Revenue (US$ Million) EBITDA (US$ Million) 5, , % 3.8% % 110.4% Volume and price improvement both in domestic Market and exports. Primo Group Results consolidation in JBS Australia. Resilient US demand for beef with growth in imports, mainly from Australia. Increase in Australia exports. Strong cow retention for herd rebuilding in the US, cow inventories growing 2.5% and heifer growth of 6.5%. 13

14 JBS USA Pork % NR JBS S.A. 6% Net Revenue (US$ Million) EBITDA (US$ Million) 1, % % % -43.2% 64.6 Growth in number of animals available for processing and consequent increase in sales volume. Growth in exports volume. Increase in sales of higher value added products. 14

15 JBS USA Chicken (Pilgrim s Pride Corporation - PPC ) % NR JBS S.A. 16% Net Revenue (US$ Million) EBITDA (US$ Million) 2, , % 20.7% % % Focus on operational excellence. Effective strategy in product portfolio and management of sales channels. Geographic, portfolio and sales channels diversification, optimization of risk management and product pricing. Integration of the PPC and Tyson Mexico progressing as per schedule. 15

16 Exports 16

17 JBS Consolidated Exports Breakdown in and Others 16.6% Greater China¹ 18.5% E.U. 5.2% South Korea 7.1% Canada 2.5% Russia 4.6% Others 9.2% US$ 3,970.8 million Greater China 14.7% Africa & Middle East 14.1% South America 11.7% Canada 2.5% South Korea 4.1% US$4,305.1 million South America 12.6% USA 10.2% Japan 10.4% Mexico 10.4% Russia 6.5% E.U. 6.6% Japan 9.5% Mexico 10.7% Africa & Middle East 12.4% Note 1. Including China and Hong Kong 17

18 Capex, Cash Generation and Debt Profile 18

19 Capex and Cash Generation In, JBS total CAPEX was R$2,090.6 million, from which: CAPEX R$1,092.3 million refers to the acquisition of Tyson in Mexico. R$998.3 million from Additions to property, plant and equipment and intangible assets, of which approximately 50% was related to expansion and modernization of facilities and 50% in maintenance. Cash Generation In, the Company generated net cash flow from operations of R$675.1 million. Free cash flow generation, after Capex, was negative in R$ 1,415.5 million, due to payment for the acquisition of Tyson Mexico of US$400 million. 19

20 Debt Profile Net Debt (R$ Million) & Leverage 3.2x 2.4x 2.3x 34,824 24,714 Net Debt (US$ Million) 11,221 11,224 JBS ended with leverage of 2.4x, compared to 3.2x in. Considering the pro-forma results from the acquisitions made in the 2H14 (Tyson in Brazil and Mexico, Big Frango, Céu Azul and Primo Group), of R$1.0 billion incremental EBITDA, leverage would be 2.3x. Breakdown by Currency and Costs Breakdown by Source Breakdown by Company 13.14% p.a. R$ 13% US$ 87% 4.92% p.a. Capital Market 47.3% BNDES 0.1% Commercial Banks 52.6% JBS USA Holdings 38% JBS Foods 13% JBS S.A. 49% 20

21 Debt Profile and Maturity Debt Profile The Company ended the quarter with R$13,907.7 million in cash, equivalent to 87% of short term debt, approximately. JBS USA has US$1.6 billion fully available under credit facilities which, if added to the current cash position, represents 118% of short term debt. The percentage of short term debt (ST) in relation to total debt was 33% in. 3Q14 4Q14 1Q15 28% 30% 34% 29% 33% 72% 70% 66% 71% 67% Maturity (R$ million) Short Term Long Term 11,471 8,361 2,075 2,866 2,771 3, ,529 * Net of Cash Short term* after

22 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.