JBS Institutional Presentation Including Q5 Results A Global Food Company
JBS Global LTM to Q5 Net Revenue of R$37.8 billion Prepared & Others 30% Pork 0% LTM Revenue Q5 R$37.8 bi Poultry 0% Second largest global food company according to Bloomberg ranking¹ Bovines 40% Capacity to process 00,000 bovines per day in 73 units in seven countries Capacity to process 7,000 hogs per day in units in Brazil and the United States Capacity to process more than 3 million birds per day in 58 units in the Americas Capacity to produce more than 00 thousand hides per day in 3 units worldwide More than 5 thousand employees around the world Note. Based on 03 Net Sales
Unique Global Protein Platform Presence in 0+ countries, Exports to 50+ countries and more than 300,000 clients 83% of JBS Revenue is Moscow denominated in US$ North America ~49% of JBS revenue¹, ² Chicago Toronto London Ghent Hamburg Shanghai Seoul Tokyo Dubai Taipei Hong Kong 7% of JBS Revenue is denominated in R$ Caracas Santiago São Paulo (headquarter) South America Exports ~30.7% of JBS revenue ~7.6% of JBS revenue¹,3 Note. It considers only domestic sales Note. Includes beef and lamb operations in the USA and Australia Note 3. Includes leather and hides operations in Brazil, Uruguay, Mexico, Germany, Vietnam and China and also Rigamonti operations in Italy. Sales office Sales office presence Production Platform 3
JBS Historical Performance JBS diversified products portfolio shows a consistent growth performance - Sales CAGR: 33% - EBITDA CAGR: 47% 9.% 9.6% 4.3% 3.8% 3.7% 5.5% 5.0% 5.8% 6.6% 0.5 37.8 9.9 4. 30.3 34.3 0.6..3 54.7 6.8 75.7 3.5 3. 4.4 6.. 3. 007 008 009 00 0 0 03 04 LTMQ5 Net Revenue (R$ billion) EBITDA (R$ billion) EBITDA Margin(%) 4
Value Creation Proven More M&A and turnaround track record than 50 acquisitions in the last 0 years EBITDA and EBITDA margin US$ US$ R$ 6.% 8.8%,59M,6M 7.%,638M 007 Pre JBS LTM Q/05 009 Pre JBS LTM Q/05 03 Pre JBS LTM Q/05 5
JBS Strategy Step 3: Develop leading consumer brands Branding 0+% Value added products 8+% Sales and distribution platform Step : Expand global distribution platform to reach clients; sell direct to customers in foreign markets 4+% Processing platform Step : Develop efficient and diversified global processing platform; optimize mix JBS has created an integrated platform that increasingly captures maximum value across the value chain 6
Why JBS? GLOBAL LEADER CONSISTENT GROWTH AND MARGIN EXPANSION DIVERSIFICATION GEOGRAPHY PROTEIN PRODUCT PORTFOLIO BEST-IN-CLASS COST STRUCTURE CONSISTENT AND MORE STABLE EARNINGS OPERATIONAL EXCELLENCE BEST-IN-CLASS MANAGEMENT 7
Consolidated Results 8
Q5 Consolidated Highlights Consolidated Net Sales (R$ Million) Consolidated EBITDA (R$ Million) 38,905 EBITDA Margin (%) 8.4% 9.% 8,969 3,577,433 34.3% 47.0% Q4 Q5 Q4 Q5 Revenue growth of 34.3%. EBITDA growth of 47.0% (more than Revenues). 80 bps expansion in EBITDA margin over Q4. 9
Q5 Consolidated Highlights Consolidated Net Income (R$ Million) Cash Generation (R$ Million) Earnings per share (R$) 0.09 0.03 675 54 358.4% 80 47 Q4 Q5 Q4 Q5 Net Income affected by FX hedging expenses. Cash generation increase of 358.4% over Q4. Hedging strategy continues to be effective, though negative in Q5. 0
Q5 Consolidated Highlights Net Debt (US$ Million) Net Debt (R$ Million) / Leverage,,4 Net Debt 3.x 4,74 Leverage (x) Adjusted Leverage*.4x.3x 34,84 Q4 Q5 Q4 Q5 Stable USD Net Debt over Q4. Leverage was.4x in Q5 and adjusted leverage was.3x. *Considering the pro-forma results from the acquisitions made since H4 (Tyson in Brazil and Mexico, Big Frango, Céu Azul and Primo Group), of R$.0 billion incremental EBITDA, leverage would be.3x.
JBS Consolidated Exports Breakdown in Q5 and Q4 Others 6.6% Greater China¹ 8.5% South Korea 7.% Canada.5% Russia 4.6% E.U. 5.% Others 9.% Q5 US$ 3,970.8 million Greater China 4.7% Africa & Middle East 4.% South America.7% Canada.5% South Korea 4.% Q4 US$4,305. million South America.6% USA 0.% Japan 0.4% Mexico 0.4% Russia 6.5% E.U. 6.6% Japan 9.5% Mexico 0.7% Africa & Middle East.4% Note. Including China and Hong Kong
Capex, Cash Generation and Debt Profile 3
Capex and Cash Generation CAPEX In Q5, JBS total CAPEX was R$,090.6 million, from which: R$,09.3 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 Q5, the Company generated net cash flow from operations of R$675. million. Free cash flow generation, after Capex, was negative in R$,45.5 million, due to payment for the acquisition of Tyson Mexico of US$400 million. 4
Debt Profile Net Debt (R$ Million) & Leverage Net Debt Leverage (x) Adjusted Leverage* 3.x.4x.3x 34,84 4,74 Net Debt (US$ Million),,4 JBS ended Q5 with leverage of.4x, compared to 3.x in Q4. *Considering the pro-forma results from the acquisitions made in the H4 (Tyson in Brazil and Mexico, Big Frango, Céu Azul and Primo Group), of R$.0 billion incremental EBITDA, leverage would be.3x. Q4 Q5 Q4 Q5 Breakdown by Currency and Costs Breakdown by Source Breakdown by Company 3.4% p.a. R$ 3% US$ 87% 4.9% p.a. Capital Market 47.3% BNDES 0.% Commercial Banks 5.6% JBS USA Holdings 38% JBS Foods 3% JBS S.A. 49% 5
Debt Profile and Maturity Debt Profile The Company ended the quarter with R$3,907.7 million in cash, equivalent to 87% of short term debt, approximately. JBS USA has US$.6 billion fully available under credit facilities which, if added to the current cash position, represents 8% of short term debt. The percentage of short term debt (ST) in relation to total debt was 33% in Q5. Q4 3Q4 4Q4 Q5 Q5 8% 30% 34% 9% 33% 7% 70% 66% 7% 67% Maturity (R$ million) Short Term Long Term,47 8,36,075,866,77 3,07 734 3,59 * Net of Cash Short term* 06 07 08 09 00 0 after 0 6
Business Units 7
Performance by Business Unit JBS Foods JBS Mercosul JBS USA Beef (Including Australia & Canada) JBS USA Pork JBS USA Chicken (PPC) Net sales (R$ billion) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) 3. 3.4 3.6 3.9 4.5 6.3 6.5 7.5 6.8 7. 5.3 5.8 5.9 5. 5.9,08.3 937.8 964.0 76.3 795.0..3... Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 EBITDA (R$ million) EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million) 4.3% 7.% 8.0% 5.9% 7.7% 789.4 576.0 656. 66.0 440.4 0.% 8.6% 7.% 5.6% 5.% 634.3 554.6 534. 376.4 376.8.0% 08.6 8.6% 504.9 5.5% 3.6% 3.8% 35. 86.6 8.5.%.% 9.9%.% 8.% 3.8 3. 95.7 93. 64.6 9.% 0.7% 7.4% 7.7% 5.5% 338.6 435.4 367.8 363.5 45.8 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 Q4 3Q4 4Q4 Q5 Q5 EBITDA margin (%) 8
JBS Foods Leading producer of prepared foods (PFPs) and fresh poultry and pork products Operational Platform 5.6 million birds per day Brazil +66,000 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 80 thousand tons per month AM MT MS 3 PR DF MG 3 RJ SP 3 BA CE PE 30 slaughterhouses and deboning units 08 slaughterhouses and deboning units 3 PFP units 7 distribution centers Production units located in the south, southeast, northeast and mid-west regions. RS 5 6 SC 6 3 5 3 7 distribution centers In 3 states nd largest producer and exporter of poultry and pork in Brazil Large production platform, with 6 production units and nearly 66,700employees National distribution platform serving ~79,000 points of sale Strong international presence, exporting to over 00 countries Complete product portfolio with leading and well-known brands Uniquely positioned as the natural consolidator of the sector in Brazil, allowing accelerated growth Net Revenue LTM to Q5 R$5.4 billion EBITDA LTM to Q5 R$,637.6 million 7.% Margin Notes. Industrial Complex: location with one or more units of production; 9
JBS Foods % NR JBS S.A. 47% 9% % Net Revenue (R$ Million) EBITDA (R$ Million) 4,459.6 7.7% 3,084.5 4.3% 440.4 44.6% 79.3% 789.4 Q4 Q5 Q4 Q5 Strong revenue growth, organic and inorganic. EBITDA Margin expansion to 7.7% in Q5. Revenue growth of 9.9% 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. 0
JBS Foods Domestic Market External Market Seara Presence in Retail Size of the Brazilian Market and its Growth (k tons) () JBS Foods Market Share Gain ( () 8 63 +0.9% -0.4% 8 6 +9.7 p.p. +. p.p. + 7.% 463 497 +.3 p.p. 07 5 S4 + 7.5% S5 +0.9 p.p. Frozen Products Processed Products Margarines Pizzas Source: AC Nielsen () Processed Products + Margarines S (Jan-Jun) S Jul-Dec / Frozen Products +Pizzas: S (Dez-May) S (Jul-Nov) () Includes Excelsior. Pizzas and Processed Products May/Jun4 x May/Jun5 and Fronzen Products and Margarines Abr//May4 x Apr//Ma5 Innovation Launching of 46 new SKUs
JBS Mercosul Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business Operational Platform ~ 55,000 bovines per day 9% in Brazil, 3% in Argentina, 3% in Paraguay and % in Uruguay 90,000 hides per day Facilities in Brazil, Argentina, Uruguay, China, Vietnam and Mexico 44 distribution centers central and 3 regional in Brazil and 0 in Argentina 09 related businesses Biodiesel Can making Collagen JBS Carriers Trading Hygiene and Clean Casings TRP Complementary to JBS Carriers Recycling Brazil AM AC RO MT 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; the only country to export fresh beef to the US Net Revenue LTM to Q5 6 3 4 8 3 5 PA 5 3 9 MS 4 4 PR RS 6 4 GO MA 3 3 3 6 SC BA MG RJ R$8.0 billion CE ES SP PE EBITDA LTM to Q5 +70,000 employees 47 beef processing facilities 06 feedlots 30 tanneries 43 distribution centers 05 beef processing facilities 0 distribution center 0 tannery 0 beef processing facility 0 tannery 0 beef processing 0 tanneries R$,84.9 million 6.6% Margin
JBS Mercosul % NR JBS S.A. 9% Net Revenue (R$ Million) 6,9.4 7,05.4 0.% 634.3 EBITDA (R$ Million) 5.% 4.5% 376.8-40.6% Q4 Q5 Q4 Q5 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. 3
JBS USA Beef Beef production in the United States, Canada and Australia Operational Platform United States +30,000 employees ~4,000 bovines per day 8,000 in the US 4,000 in Canada 9,000 in Australia ID UT CO 4 NE KS WI MI PA 09 beef processing facilities,000 hides per day 5,000 in the US 6,000 in Australia AZ TX OK 3 feedlots 0 tannery 06 carriers units 6 feedlots (bovine) in the US/ Capacity of.0 million bovines 0 in Canada / Capacity of 70,000 bovines 05 in Australia / Capacity of 5,000 bovines 4 4 Australia and New Zealand² Leadership in beef exports Leadership in the processing of lamb (,000 lamb per day) #st in the Food Industry Ranking¹ Growth of 7% in revenues from 03 to 04 5 processing facilities 09 bovine, 05 lamb and 0 hogs 07 feedlots 05 bovine and 0 lamb 0 tannery 4 distribution centers 03 case ready and 03 small goods facilities 4 distribution centers 4 DCs in Australia and 06 carriers units in the US Net Revenue LTM to Q5 Canada Growth of 49% in revenues from 03 to 04 US$.9 billion 0 beef processing facility 0 feedlot (bovine) 0 trading EBITDA LTM to Q5 US$,45. million 5.4% Margin Note. Source: Food&Drink Business Magazine; Note. Includes Primo Smallgoods 4
JBS USA Beef (including Australia and Canada) % NR JBS S.A. 47% 6% 6% 9% % Net Revenue (US$ Million) EBITDA (US$ Million) 5,33.4 5,94.9.0% 3.8% 8.5.5% 0.4% 08.6 Q4 Q5 Q4 Q5 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.5% and heifer growth of 6.5%. 5
JBS USA Pork Pork production in the United States Operational Platform United States +6,000 employees ~ 5,300 hogs per day 00% in the US MN 03 case ready facilities Convenience products CA CO IA KY NC 03 hogs processing facilities 03 case ready facilities ~3,000 lamb per day 0 lamb processing facility Products Main Brands Swift Premium Dry Rubbed Ribs Swift Premium Boneless Backrib Swift Premium Rubbed Loin Filet Swift Premium Boneless Pork Chops Net Revenue LTM to Q5 US$3.5 billion EBITDA LTM to Q5 US$366.7 million 0.6% Margin 6
JBS USA Pork % NR JBS S.A. 6% Net Revenue (US$ Million) EBITDA (US$ Million),08.3.% 3.8 8.% 795.0 -.7% -43.% 64.6 Q4 Q5 Q4 Q5 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. 7
JBS USA Chicken (Pilgrim s Pride Corporation - PPC ) Poultry production in the United States, Porto Rico and Mexico Operational Platform United States +44,000 employees ~ 8. million birds per day 6.5 million in the US 50,000 in Porto Rico,4 million in Mexico KY WV VA 4 processing facilities 7 distribution centers Located in Mexico TX 4 AR LA TN AL 3 NC SC GA 7 FL 05 case ready facilities + 3,500 contract growers 36 hatcheries Mexico 8 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 7 distribution centers Porto Rico 0 processing facility Net Revenue LTM to Q5 US$8.5 billion EBITDA LTM to Q5 US$,59.4 million 8.8% Margin 8
JBS USA Chicken (Pilgrim s Pride Corporation - PPC ) % NR JBS S.A. 6% Net Revenue (US$ Million) EBITDA (US$ Million),86.8,053.9 5.5% 0.7% 45.8-6.% 338.6 5.7% Q4 Q5 Q4 Q5 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. 9
Recently Announced Acquisitions 30
Moy Park The Enterprise Value was fixed at US$.5 billion, adjusted by: a. Assumption of debt, including GBP300 million bond with maturity in 05/0. b. Cash. c. Working Capital Variation. 3
Moy Park - Overview Company Description Net Revenue (R$ Million) +70 years of activity. Fresh poultry sales mainly to UK retailers & convenience foods sales to retailers and food service channels. 4,006 +37.5% 4,73 5,508 Others 7% Processed food 5% Vertically integrated poultry producer. Market leader in high value added categories. 0 03 04 Footprint Fresh poultry Fresh poultry 4% A leading poultry processing company in UK. UK Convenience EU Convenience Breeding Grounds Ballymena 3 production units with.8 thousand team members. 79% of Revenues comes in the UK and % in Continental Europe. Dungannon Dublin Craigavon Ashbourne Grantham Huntingdon Anwick Marquise Peterborough Schagen Source: Company Hénin- Beaumont Orleans 3
Cargill Pork Business Unit Transaction Value of US$,450 million, on a debt-free, cash-free basis to be paid in cash at closing, adjusted by Working Capital variation. 33
Cargill Pork U.S. - Overview Company Description Financial Highlights well-invested pork processing facilities Annual Net Revenue of US$.56 billion. Slaughter capacity of 38. thousand hogs/day Estimated EBITDA of US$ million based on JBS USA Pork 5-year average EBTIDA Margin of 8.3%. Bacon production of million pounds/week 8% Net Revenue in the US and 9% in Exports. 4 Genetic Units, ~60 thousand Sows that supply 33% of the total hogs processed by the business. Footprint Dalhart, TX ~,000 acres, 68,000 Sows and advanced live hog production through Group Housing and antibiotic free (ABF) systems. 5 Feed Mills.. million metric tons of annual feed capacity annually. Feed mill Procesing facilities Genetics 34
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.