JBS DAY A GLOBAL FOOD COMPANY

Transcription

1 JBS DAY A GLOBAL FOOD COMPANY São Paulo, November 12, 2015

2 JBS AT A GLANCE Net Revenue of R$150 billion (LTM) Second largest global food company¹ Prepared & Others 30% LTM Revenue 3Q15 R$150 bi Beef 32% Global and diversified platform Value added product portfolio with brands Pork 16% Poultry 22% High performance team with more than 230 thousand employees Source 1: Bloomberg Focus on operational excellence 2

3 A GLOBAL COMPANY Exclusive Global Production and Sales Platform 3% CANADA EUROPE RUSSIA 1% 6% 47% USA ASIA 6% MEXICO AFRICA & MIDDLE EAST 4% 11% South Am. OTHERS 6% BRAZIL 12% As % of Total Revenue¹ Production footprint OCEANIA 4% Note 1. Revenues by region includes domestic sales and imports. 3

4 EVOLUTION From a Brazilian beef company in 2007 to a Global food company CARGILL PORK 19,000 EMPLOYEES IPO JBS SA Net Revenue: R$14.1 bi 2007 BERTIN Net Revenue LTM3Q15¹: R$150.1 bi Net Revenue: R$3.9 bi 2008 Net Revenue: R$30.3 bi 2010 EXPANSION IN USA AND AUSTRALIA Net Revenue: R$54.7 bi 2014 ACQUISITIONS: TYSON IN BRAZIL AND MEXICO 230,000 EMPLOYEES Note 1. Not considering revenues from Moy Park and Cargill Pork 4

5 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 costumers and sales to +150 countries +300 production units in +15 countries 5

6 HISTORICAL PERFORMANCE Constant Revenues and EBITDA Margin Growth Net Revenue Growth:77% EBITDA Growth:124% 8,4% 11,8% 9,6% 8,2% 9,2% 8,9% 7,1% 6,9% 6,6% T13 3Q13 3T13 4T134Q134T13 1T141Q141T14 2T142Q142T14 3T143Q143T14 4T144Q144T14 1T151Q151T15 2T152Q152T15 3T153Q153T15 Net Revenue (R$ million) EBITDA (R$ million) EBITDA Margin (%) 6

7 CONSOLIDATED RESULTS 3Q15 7

8 3Q15 CONSOLIDATED HIGHLIGHTS CONSOLIDATED NET SALES (R$ MILLION) 43,029 30, % CONSOLIDATED EBITDA (R$ MILLION) EBITDA Margin (%) 11.8% 3, % 3, % 3Q14 3Q15 3Q14 3Q15 Robust sales growth Solid operational results 8

9 3Q15 CONSOLIDATED HIGHLIGHTS NET INCOME (R$ MILLION) Earnings Per Share (R$) Reported Net Income 4,246.7 FREE CASH FLOW GENERATION (R$ MILLION) 5, % 3,441.4 Adjusted Net Income 2, % 1, Q14 3Q15 3Q14 3Q15 Net income reached a historical high Increased Earnings Per Share (EPS) (Cancelation of shares held in treasury) Robust Free Cash Flow Generation 9

10 3Q15 CONSOLIDATED HIGHLIGHTS RECENT ACQUISITIONS Tyson de Mexico Primo Group Moy Park Big Frango Céu Azul Anhambi Tyson do Brasil Total Value: ~US$ 3.5 billion Revenues: ~US$ 5.0 billion NET DEBT - US$ MILLION NET DEBT (R$ MILLION) / LEVERAGE 2.54x 2.55x 2,32x¹ 10,546 10,498 25,848 41,707 3Q14 3Q15 3Q14 3Q15 Note 1. leverage considering proforma results from recent acquisitions (does not include Cargill Pork). 10

11 FX HEDGING POLICY FX Exposure and Hedge Position at the end of 3Q15 JBS EXPOSURE TO US DOLLAR (R$ BILLION) Net Financial Liability Operational Asset Net Exposure ExposURE HEDGE POSITION (R$ BILLION) Hedge Unhedged Position Financial Liability Operational Asset FX Variation on Net Exposure: R$10.1 billion Effect on Financial Results: R$6.1 billion Effect on Equity: R$4.0 billion Hedge Result: R$9.5 billion 11

12 BUSINESS UNITS 3Q15 12

13 JBS FOODS 13

14 JBS FOODS NET REVENUE (R$ MILLION) 5,012.2 EBITDA (R$ MILLION) 17.1% 20.7% 1, , % 80.5% 3Q14 3Q15 3Q14 3Q15 Expressive organic growth and via acquisitions. Continuous EBITDA margin expansion. Commitment to improved performance. Focus in quality, innovation and brands. 14

15 1Q14 2Q14 3Q14 4Q Q15 2Q15 3Q15 EVOLUTION OF JBS FOODS NET REVENUE (R$ BILLION) CONSISTENCY OF RESULTS (EBITDA Margin %) 20,0 20,7% 17,0 15,9% 10,6 12,9 18.0% 13,7% 31.8% 21.7% 2013 (Acquisition)¹ 2014 LTM3Q15 3Q15 Annualized Note 1: proforma net revenue considers combined 2013 results from Seara + JBS Aves 15

16 OPERATIONAL EXCELLENCE Costumer Service (OTIF on time in full) 23% improvement Point of Purchase Out of Stock 24% improvement Active Costumers An increase of 29 thousand Perceived Quality 26% improvement in quality drivers Productivity Drivers An increase of 400 bps in operational efficiency index Source: Company 16

17 JBS MERCOSUL 17

18 JBS MERCOSUL NET REVENUE (R$ MILLION) EBITDA (R$ MILLION) 6, , % 9.0% % 15.5% 3Q14 3Q15 3Q14 3Q15 Recovery of exports and opening of Chinese and Saudi markets. Operational profitability improvement. Better supply and demand dynamics. Continuous investments in Friboi brand. Outlook of trade with the US. 18

19 JBS EUROPE 19

20 JBS EUROPE OVERVIEW NET REVENUE (R$ MILLION) % LTM 3Q15 15 production units with 12 thousand employees 450 thousand tons of products processed annually In Natura Convenience and Value Added UK Convenience and Value Added Europe Poultry Breeding Grounds Rigamonti Source: Company 20

21 Costumers Channel Mix¹ Products MOY PARK: VALUE ADDED PRODUCTS In Natura Prepared & Breaded Convenience & Others In Natura Prepared & Breaded Convenience & Others 42% 51% 7% Retail Foodservice Others² 62% 27% 10% Note 1: 2014 Revenues Percentage. Note 2: Others includes agricultural costumers, poultry international costumers and poultry sub products. 21

22 MOY PARK: INNOVATION BENCHMARKING DEVELOPMENT OF PRIVATE LABEL PRODUCTS EMBEDDED CHEFS NEW PRODUCT SAMPLES DEVELOPED BY MOY PARK FOOD DEVELOPMENT INNOVATION & INSIGHT HEADCOUNT R&D Headcount BENCHMARK IN POULTRY BREEDING PRACTICES Antibiotic Free Free Range Organics 22

23 JBS USA BEEF 23

24 JBS USA BEEF NET REVENUE (US$ MILLION) EBITDA (US$ MILLION) 5, , % % Swift (bolinha) e Primo 3Q14-1.7% 3Q15 3Q % Q15 Lower cattle availability in US as a consequence of stronger Heifer and Cow retention. Impact of Australian dollar devaluation vs. US Dollar. New management in Primo leading the process of reorganization, integration and synergy capturing. 30% expansion of value added products (consumer ready) in 2015 and 60% in 2016, reaching 340 million lbs. 24

25 Leading Brands Channel Mix¹ Products PRIMO: VALUE ADDED PRODUCT DIVERSIFICATION Processed Retail Foodservice Distributors Exports & Others 74% 5% 18% 2% Note 1: Others: retail stores 25

26 PRIMO: LEADING BRANDS IN OCEANIA Leading Brand in Australia Leading Brand in New Zealand Bertocchi 10% Private Label 8% Other 5% Primo 40% Tegel Foods 4% Hobsons Choice 4% Other 8% Premier Beehive 37% Ingham 3% A.Verkerk 9% Dorsogna 11% George Weston 23% Private Label 10% Hellers 28% Source: Australia and New Zealand Market Share data based in Woolworths & Coles (September 2015) 26

27 JBS USA PORK 27

28 JBS USA PORK NET REVENUE (US$ MILLION) EBITDA (US$ MILLION) % -16.3% % -57.2% Q14 3Q15 3Q14 3Q15 Increase in pork supply and decrease in prices. Increase of products and clients portfolio through the acquisition of Cargill Pork, concluded in October 30th. Increased sales of value added products. Defined management team at the New JBS USA Pork with the initiation of integration and synergy capturing. 28

29 NEW JBS USA PORK FINANCIAL HIGHLIGHTS MN 1 Proforma Net Revenue of US$6.3 billion. Proforma EBITDA of US$565 million (Pre-Synergies). 20% market share. CA 2 CO OK 1 IA MO AR 2 2 IL 1 KY 1 NC 1 TX 1 1 OPERATIONAL HIGHLIGHTS 90,000 hog processing capacity per day. 5.0 million lbs of prepared and value added products per week. 2.0 million lbs of bacon produced per week. 05 hog processing units 01 lamb processing unit 03 consumer ready facilities 05 feed mills 04 genetic units 29

30 JBS USA CHICKEN PILGRIM S PRIDE (PPC) 30

31 JBS USA CHICKEN (PPC) NET REVENUE (US$ MILLION) EBITDA (US$ MILLION) 2, , % % -6.9% -37.0% Q14 3Q15 3Q14 3Q15 Robust Cash generation. Decrease in prices in domestic and export markets. US$30 million impact of non recurring costs in the quarter. US$200 million in operational improvements through Challenging environment for exports, but with the expectation of markets reopening. 31

32 NEW PILGRIM S IN MEXICO FINANCIAL HIGHLIGHTS US$1.6 billion in revenue annually. 28% Market Share. US$50.0 million synergies in progress. OPERATIONAL HIGHLIGHTS Conclusion of Tyson de México acquisition in July Integration 100% concluded. +10,000 Team members. 1.3 million poultry processed per day. Strong nationally recognized brands. New Vera Cruz complex initiating in December FACILITIES FOOTPRINT 06 poultry processing units 17 Distribution Centers 32

33 MARKETING AND INNOVATION 33

34 Marketing and Innovation THE POWER OF MARKETING AND INNVOATION IN FOOD Adding Value Bottled Water Market Value¹ US$ ~160 billion Source 1: globe newswire 34

35 SEARA 35

36 REPOSITIONING OF THE SEARA BRAND SEARA BRAND UNTILL REPOSITIONING TROUGHOUT 2014 FOOTBALL oriented Marketing, through the sponsorship of teams and events. SINGLE-TIER, with no price category diversification. Seara is the brand of the contemporary woman, with FOCUS ON QUALITY, taste and convenience. Seara becomes a MULTI-TIER brand. Experimente Seara A QUALIDADE VAI TE SURPREENDER 36

37 SEARA CAMPAIGN 37

38 Regional/ Access Mainstream Premium BRAND REPOSITIONING BRAND PREFERENCE TRIPLED 90% COSTUMERS CONSIDERS SEARA IN THE BUYING PROCESS CONSIDERED THE BRAND OF THE MODERN WOMAN! SECOND PLACE ON TOP OF MIND! ONE OF THE MOST REMEMBERED TV COMERCIALS IN TEN (SOURCE: DATAFOLHA) SEARA WAS THE MOST APPRECIATED BRAND IN

39 BUYING BEHAVIOUR EVOLUTION PENETRATION (Presence in Brazilian homes) 46% +3,579,950 lares (1S15 vs. 1S14) REPEATED PURCHASE Repeat Rate: 67% VOLUME PER OCCASION (Volume growth) + 7.1% (1S15 vs. 1S14) BUYING RATE¹ (Per semester) +12.7% 2.5 visits Testers Repeaters Monthly Penetration Besides the conquest of new buyers throughout Brazil, the repetition conversion is already happening at Seara. Source: Kantar WorldPanel Consuming evolution in Brazilian homes (Categories: Pizzas, Pasta, Hamburger, Breaded, Snacks, Sausages and Ham (1S15 vs. 1S14 variation) 39

40 MARKET SHARE EVOLUTION FROZEN AND MARGERINES INDUSTRIALIZED AND PIZZAS 24,6 26,4 26,4 27,6 30,2 28,8 29,6 31,1 31,8 32,5 19,5 20,3 22,5 24,5 7,2 7,0 7,6 8,7 8,8 9,0 9,1 13,2 13,2 13,6 13,9 13,7 15,0 15,3 Aug/Sep 14 Oct/Nov 14 Dec/Jan 15 Feb/Mar Apr/Mar 15 Jun/Jul 15 Aug/Sep 15 Jul/Aug 14 Sep/Oct 14 Nov/Dec 14 Jan/Feb 15 Mar/Apr 15 May/Jun 15 Jul/Aug 15 Frozen Margerines Industrialized Pizzas Source: AC Nielsen - Market Share by Volume Category - Includes Excelsior. In Frozen, includes Massa Leve from Aug/Sep 14, Agrovêneto and Macedo from Dez/Jan 15 and Big Frango from Fev/Mar/15 40

41 FRIBOI 41

42 Decommoditization DECOMMODITIZING BEEF FRIBOI WAS... FRIBOI FROM 2013 ONWARDS Sparce Marketing Investments. Beef still treated as commodity. Increase in Marketing investments through a well known national TV celebrity. Slogan Ask for Friboi. Reliable Beef has a Name. Focus on comunicating the reliability benefit through guarantee of origin. Comercials aired on TV, radio, banners, magazines and stand ups. 42

43 FRIBOI CAMPAIGN 43

44 POSITIONING OF FRIBOI IN BRAZILIAN MARKET PRICING INDEX OF JBS BRANDS IN BRAZIL FRIBOI BRAND POSITIONING IN THE MARKET (Basket of Cuts¹) 150% Friboi average price vs Market average price 104% 101% 98% 103% 135% 125% 120% 115% 2013 Pre Campaign 2013 Post Campaign 2014 YTD % After the Slogan Ask for Friboi. Reliable Beef has a Name, Friboi prices increased 5% compared to the market average Source: JBS and Shoppingbrasil IFR Note 1: Basket is composed by: shoulder, rump, strip loin, round cuts, tenderloin, flank steak, and top sirloin cap. 44

45 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. 45

46 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.