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8/10/2019 Presentation JBS Day 3Q14
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JBS DAY - APIMEC
3Q14 Results PresentationNovember 13th, 2014São Paulo - Brazil
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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 businessand its continued access to capital to fund the Company’s business plan. Such forward-looking statementsdepend, substantially, on changes in market conditions, government regulations, competitive pressures, theperformance of the Brazilian economy and the industry, among other factors and risks disclosed in JBS’ fileddisclosure documents and are, therefore, subject to change without prior notice.
Disclaimer
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Presenters
Wesley Batista – Global CEO of JBS
André Nogueira – CEO of JBS USA
Miguel Gularte – CEO of JBS Mercosul
Gilberto Tomazoni – CEO of JBS Foods
Jerry O’Callaghan – Investor Relations Officer
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JBS Global
Estimated Net Revenue of around US$50.0 billion in 2014
Bovines49%
Poultry17%
Pork7%
Preparedproducts and
others27%
Revenue2014E
US$50.0 bi
Capacity to process 100,000 bovines per day in 73 units in seven countries
Capacity to process 72,000 hogs per day in 11 units in Brazil and the United State
Capacity to process more than 13 million birds per day in 57 units in the Americas
Capacity to produce more than 100 thousand hides per day in 31units worldwide
More than 80 thousand tons of convenient and value added products per
month in the world
More than 200 thousand employees around the world
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Presence in 20+ countries, Exports to 150+ countries and more than
300,000 clients
Note 1. It considers only domestic salesNote 2. Includes beef and lamb operations in the USA and AustraliaNote 3. Includes leather and hides operations in Brazil, Uruguay, Mexico, Germany, Vietnam and China and also Rigamonti operations in Italy.
JBS Global
Tokyo
Hong Kong
Shanghai
Taipei
Santiago
Dubai
Moscow
London HamburgGhent
ChicagoToronto
São Paulo(headquarter)
Sales office
Sales office presence
Production Platform
North America
~51% of JBS’ revenue¹,²
South America
~17% of JBS’ revenue¹,3
96% from Brasil
Seoul
Caracas
84% of JBS’Revenue is
denominated in US$
Exports
~32% of JBS’ revenue
16% of JBS’
Revenue is
denominated inR$
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JBS Evolution
Net Revenue (R$ billion)
EBITDA (R$ million)
30.3 34.3
54.761.8
75.7
92.9
113.4
2008 2009 2010 2011 2012 2013 LTM¹
1,156.1 1,285.2
3,497.0 3,072.04,410.3
6,130.3
9,664.2
3.8% 3.7%
6.4 %5.0%
5.8%
6.6%
8.5%
2008 2009 2010 2011 2012 2013 LTM¹
EBITDA margin (%)
CAGR+125%
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Consolidated Results
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Gross Profit Adjusted EBITDA
EBITDA
Net Revenue Net Income
3Q14 Highlights - Consolidated
24,222.027,222.2 26,419.1
28,968.930,778.6
3Q13 4Q13 1Q14 2Q14 3Q14
Net Revenue of R$30.8 billion,
expansion of R$6.6 billion, or 27.1%
superior than 3Q13
3Q14 Highlights (R$ Million)
Operational Cash Generation of R$3.0 billion and Free Cash Generation (after Investments) of R$2.1 billion.
JBS ended the quarter with leverage of 2.54x compared to 3.15x in 2Q14.
1,709.7 1,873.5 1,749.7
2,432.7
3,617.97.1 6.9 6.6
8.4
11.8
3Q13 4Q13 1Q14 2Q14 3Q14
EBITDA of R$3.6 billion, 111.6%
superior than 3Q13. EBITDA
margin was 11.8%.
27.1%
6.2%
Adjusted EBITDA Margin (%)
219.8 140.7 70.0254.3
1,092.90.08 0.05 0.02
0.09
0.38
3Q13 4Q13 1Q14 2Q14 3Q14
EPS (R$)
Net Income of R$1.1 billion,
equivalent to an EPS of R$0,38.
3,128.03,732.0 3,421.0
4,255.0
5,560.012.9 13.7 13.014.7
18.1
3Q13 4Q13 1Q14 2Q14 3Q14
Gross Margin (%)
Gross Profit of R$5.6 billion, an
increase of R$2.4 billion, or 77.7%
higher than 3Q13.
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3Q14 Highlights - Businesses Units
JBS Foods recorded net revenue of R$3,376.8 million, 9.5% superior over 2Q14, and EBITDA of R$576.0 million, with an EBITDAmargin of 17.1%.
JBS Mercosul posted net revenue of R$6,470.5 million, 14.8% higher than 3Q13 and EBITDA of R$554.6 million, with EBITDAmargin of 8.6%.
JBS USA Beef posted net revenue of US$5,849.3 million, 24.7% higher than 3Q13. EBITDA was US$504.9 million, with anEBITDA margin of 8.6%
Net Revenue of JBS USA Pork totaled US$937.8 million, 3.8% higher than 3Q13, and EBITDA of US$113.2 million, with an EBITDAmargin of 12.1%.
JBS USA Chicken (PPC) reported net revenue of US$2,268.0 million, an increase of 5.8% compared to 3Q13. EBITDA wasUS$435.4 million, with a margin of 19.2%.
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Greater China¹20.4%
Mexico15.6%
Japan11.9%
MENA9.0%
South America8.2%
Russia5.6%
E.U.5.6%
South Korea5.5%
Canada4.2%
Others14.1%
3Q13US$2,954.0
million
JBS Consolidated Exports Breakdown in 3Q14 and 3Q13
Growth of 48% in exports in the quartercompared to 3Q13
Note 1. China and Hong Kong
Greater China¹16.8%
Mexico11.0%
Japan10.9%
South America10.5%
MENA10.5%
USA9.5%
Russia9.1%
E.U.6.5%
South Korea4.7%
Canada2.4%
Others8.2%
3Q14US$4,361.1
million
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Capex, Cash Generation and
Debt Profile
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Cash Generation
CAPEX
Capex and Cash Generation
In 3Q14, total capital expenditure (CAPEX) was R$878.6 million, of which approximately 20% in
acquisitions, 25% in expansions and facilities modernization and 55% in maintenance.
In 3Q14 the Company generated net cash flow from operations of R$3.0 billion and free cash flow
(after capex) of R$2.1 billion, due to the strong performance of JBS’ businesses units.
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1
4.03
3.70 3.26 3.15
2.54
0
1,000
2,000
3,000
4,000
5,000
6,000
3Q13 4Q13 1Q14 2Q14 4Q14
Debt Profile
Leverage EBITDA (R$ million)
JBS ended the quarter with leverage of 2.54x compared to 3.15x in2Q14.
The reduction in leverage is due to the improvement in operational
performance of JBS, combined with a strong cash generation in the
quarter.
This reduction in the leverage reflects the Management commitment in
improve continuously its capital structure in order to generate value to all
its stakeholders.
Leverage (Net Debt/EBITDA LTM)
Breakdown by Currency and Costs Breakdown by Company
US$80%
R$20%
JBS S.A.56%
JBS Foods13%
Subsidiaries31%
Breakdown by Source
CapitalMarkets40.0%
CommercialBanks 59.9%
BNDES 0.1% 11.50% per
annum
5.71% perannum
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1
-1,095
1,050
4,543
1,638
5,245
744
5,290
2,798
5,636
Short Term* 2015 2016 2017 2018 2019 2020 2021 after 2021
The Company ended the quarter with R$12,578.5 million in cash,
equivalent to 110% of its short-term debt.
JBS USA has US$1.33 billion fully available under
revolving credit facilities which, if added to the current cash
position, represents 121% of short term debt.
The percentage of short term debt (ST) in relation to total
debt was 30% in 3Q14.
* Net of Cash
Debt Profile and Maturity
Short Term Long Term
30%
28%
29%
29%
35%
70%
72%
71%
71%
65%
3Q14
2Q14
1Q14
4Q13
2Q13
Debt Profile
Maturity (R$ million)
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1
Business Units
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1
JBS Foods
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1
EBITDA 9M14Net Revenue 9M14 R$9.2 billion
5.1 million birds per day
21,200 hogs per day
~80,000 tons per month
2nd largest producer and exporter of poultry and pork in Brazil³
Large production platform, with 60 production units1,2 and nearly 55,000 employees
National distribution platform serving ~79,000 points of sale
Strong international presence, exporting to over 100 countries
Complete product portfolio with leading and well-known brands
Uniquely positioned as the natural consolidator of the sector in Brazil, allowing accelerated growth
JBS Foods
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
Operational Platform +55,000 employees
R$1,396 million
15.1% Margin
Brazil
29 slaughterhouses and deboning units
08 slaughterhouses and deboning units
23 PFP units
15 distribution centers
15 distribution centers
Production units located in the south,
southeast and mid-west regions
Production units located in the south
and mid-west regions
Production units located in the south,
southeast, northeast and mid-west
regions
In 12 states
Notes: 1 Industrial Complex: location with one or more units of production; 2 Includes Tyson acquired units, approved in October/14; 3 Total produced volume of PFP, poultry and pork of 182 mm tons, 359 mm tons and 54 mmtons in 3Q14, respectively. Total export volume of 331 mm tons in 3Q14
1
MTBA
MG
RJ
PR
RS
MS
DF
5
7
2
SC 8 3 7
SP 4 3
1
2
511
3
1
1
21
221
1
1
CE1
PE 1
1
1
3
1
2
1
1
AM
JBS F d
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1
JBS Foods
27 32 38 42
189 189 198 204 205 212
249
4 4 4 7
72 76 76 76 76 78 80
JBS Foods has grown significantly over the last 2 years through the strategic acquisitions of complimentarybusiness, that have been or are in process of being successfully integrated
Total Capacity (‘000 tons / month) and Main Acquisitions since May 2012
Source: JBS Foods¹ Acquisition of Tyson do Brasil approved by the Brazilian Antitrust Board (CADE) on 10/23/14
May/12 Jan/13 Mar/13 May/13 Sep/13 Dec/13 Jan/14 Feb/14 Mar/14 May14 Jul/14
Fresh Meat Capacity
PFP Capacity Current ProductionCapacity
23 PFP units
Processing Capacity:~79.8 k tons
of PFPs / month
Prepared FoodProducts
29 processing anddeboning units
Processing Capacity:
5.1 million1 birds / day
Poultry
8 processing
and deboning units
Processing Capacity:
21,200hogs / day
Pork
Leasing of 3poultryslaughteringunits, 2processingproductionplants and 1distributioncenter fromDouxFrangosul –
expansion intofresh poultrysegment inBrazil
Leasing of 1poultryslaughteringunit from
Tramonto – expansion offresh poultrycapacity
Acquisition ofSeara Brasil – expansion inPFPs
Acquisition of 1pork/poultryslaughteringand processingunit from BRF
AcquisitionofAgrovêneto – expansion offresh poultrycapacity
Acquisitionof Frinal – expansion offresh poultrycapacity
Leasing of BRFrango plantin Paraná – expansion offresh poultrycapacity
Corporaterestructuringand creation ofJBS Foods
Acquisition ofSul Valle – expansion of
fresh poultry &pork capacity
Acquisitionof MassaLeve expansioninto thepastasegment
Acquisition ofBelafoods – expansion offresh poultrycapacity
Acquisitions ofCéu AzulAlimentos andTyson do Brasil1
– expansion offresh poultrycapacity
Excelsiortransfer fromJBS S.A. to JBSFoods – PFPcapacityExpansion
JBS F d8%
% JBS Net Revenue
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1
2.9 2.83.1
3.4
4Q13 1Q14 2Q14 3Q14
JBS Foods
Net Revenue (R$ billion)
EBITDA (R$ million)
EBITDA Margin (%)
11%
24%
40%
8%
18%
Net Revenue of R$3,376.8 million in the quarter, 9.5% higher than
2Q14:
Increase of 16.8% in domestic volumes;
Increase of 2.9% in average prices of prepared products in domesticmarket;
Higher volume of fresh pork exports (+17.7%);
Increase of 6.4% in average export prices.
EBITDA totaled R$576.0 million, with an EBITDA margin of 17.1%,compared to 14.3% in 2Q14:
Higher productivity with lower production costs, as well as a decrease inthe cost of raw materials resulted in a COGS representing 71.5% of netrevenue, compared to 74.4% in 2Q14;
Reduction in SG&A (14.4% over net revenue compared to 15.2% in the2Q14), mainly due to lower logistics costs, reflecting the reorganization andoptimization of the company’s logistics network.
227.3
379.8440.4
576.07.9%
13.7% 14.3%17.1%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
4Q13 1Q14 2Q14 3Q14
9.5%
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JBS Foods
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2
JBS Foods
18.4%
11.8%
7.2%
16.3%
Products Old Mkt Share1Brands
19.7%
13.1%
7.4%
19.0%
New Mkt Share2
+2.7pp
+1.3pp
+1.3pp
+0.2pp
Dec/Jan - 14
Dec/Jan - 14
Jan/Feb - 14
Jan/Feb - 14
Aug/Sep - 14
Jul/Aug - 14
Jul/Aug - 14
Aug/Sep - 14
Pizzas & Pastas
Margarine
Frozen
Chilled
JBS Foods’ Market Position in Main Product Categories
JBS Foods has streamlined and repositioned its brand portfolio and increased the efficiency of its commercial andmarketing strategy, with a high brand recognition among consumers
2o
2o
3o
2o
Ranking
Source: Nielsen1 Data for Dec-Jan/14 for frozen products and margarine and Jan-Feb/14 for chilled products and pizza.2 Data for Aug-Setp14 for frozen products and margarine and Jul-Aug/14 for chilled products and pizza.
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2
JBS Mercosul
JBS Mercosul
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2
EBITDA LTM14Net Revenue LTM14 R$27.8 billion
~ 55,000 bovines per day
90,000 hides per day
43 distribution centers
09 related businesses
92% in Brazil, 3% in Argentina, 3% in
Paraguay and 2% in Uruguay
Facilities in Brazil, Argentina, Uruguay,
China, Vietnam and Mexico
11 central and 32 regional
Biodiesel
Can making
Collagen
JBS Carriers
Trading
Hygiene and Clean
Casings
TRP – Complementary to JBSCarriers
Recycling
JBS Mercosul
Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business
Operational Platform +70,000 employees
R$2,477.4 million
10.0% Margin
Argentina
Leadership in beef production
05 beef processing facilities
02 can making
01 tannery
ParaguayJBS is the leader in beef processing and has around 25% of market share inexports of Paraguay
02 beef processing facility
Uruguay
Great access to export markets; the only country to export fresh beef to the US01 beef processing
02 tanneries
Brazil
48 beef processing facilities
06 feedlots
29 tanneries
43 distribution centers
1
15
9
3
1
1
16
4
3
4
4
2 1
1
3
2
1
2
6
2
4
2
8
5
3
2
2
1
1
1
2
1
1
1 23 63
PA
AM
AC RO MT
MA
PEBA
MG
ES
RJ
SP
SC
PR
RS
MS
1
GO
1 CE
JBS Mercosul
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2
Products and
Channels Mix
• Improvement in product mix through the launching of
32 new SKUs (prepared products) in 2014
• Increase of sales in small and medium retailers, from
42% in 2013 to 49% in 2014
• Customer loyalty programs
ScientificPricing &CommercialIntelligence
• Scientific data treatment to a better decision making
process regarding prices and volumes
Relationshipwith Ranchers
• Sustainable Purchase
• Focus on relationship through:
Rancher website
Bonus for Quality program
Television channel
Main Initiatives in Brazil
Paraguay• Increase in market share (JBS processed 24% more
bovines in 3Q14 compared to 3Q13)
Uruguay• Exploration of niche markets in Europe and in the US
leveraging Uruguay operations
Argentina
• Increase of production capacity of convenience and
value added products, with the launching of 10 new
SKUs
Main Initiatives in Argentina, Paraguay and in Uruguay
HumanResources
• Management and Targets systems based on
meritocracy
• Sales Academy
Operational
• Benchmark between facilities and operations
• Increase in customers base from 55,000 to 65,000
customers
• Development of Management of Beef Category
• Trade marketing initiatives in the point of sales
• Logistics optimization
Main Initiatives
JBS Mercosul
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JBS Mercosul 7%
% JBS Net Revenue
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2
5.66.3
5.76.3 6.5
3Q13 4Q13 1Q14 2Q14 3Q14
JBS Mercosul
Net Revenue (R$ billion)
EBITDA (R$ million)
EBITDA margin (%)
11%
21%
44% 17%
Net revenue of R$6.470,5 million in the quarter, 14.8% higher than
3Q13: Increase in sales prices in the export market;
Compared to 2Q14, net revenue increased 2.8%;
The launching of convenience beef products reflected in an increase in thesales volumes in this category (processed products) coupled with anincrease in prices during the period.
EBITDA totaled R$554.6 million, with EBITDA margin of 8.6%:
Strong demand in the international market
More products towards exports in order to maximize profitability per animalprocessed
Strategy of investing in brands and product innovation in the domesticmarket
653.9 692.4596.1 634.3
554.6
11.6% 11.0% 10.4% 10.1% 8.6%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
3Q13 4Q13 1Q14 2Q14 3Q14
2.8%
14.8%
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2
Beef
JBS USA
JBS USA Beef
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2
Australia
Leadership in beef exports
Leadership in the processing of lamb (22,000 lamb per day)
#1st in the Food Industry Ranking¹
Growth of 112% in revenues from 2007 to LTM2014
01 beef processing facility
01 feedlot (bovine)
01 trading
13 processing facilities
08 bovine and 05 lamb
07 feedlots 05 bovine and 02 lamb
01 tannery
07 distribution centers
03 case ready facilities
~40,000 bovines per day
11,000 hides per day
07 distribution centers
09 beef processing facilities
11 feedlots
01 tannery
06 carriers units
28,000 in the US
4,000 in Canada
8,000 in Australia
5,000 in the US
6,000 in Australia
07 DCs in Australia and 06 carriers
units in the US
Beef production in the United States, Canada and Australia
Operational PlatformUnited States
Canada
Growth of 17% in revenues from 2013 to LTM2014
16 feedlots (bovine)
11 in the US/ Capacity of 1.0 million
bovines
01 in Canada / Capacity of 70,000
bovines
05 in Australia / Capacity of 152,000
bovines
Note 1. Source: Food&Drink Business Magazine
+30,000 employees
EBITDA LTM14Net Revenue LTM14 US$20.5 billionUS$704.9 million
3.4% Margin
1
NE 2
1CO 1
4
1
UT1
1
TX
1
3
1
2
WI
11 MI
1
PA1
AZ
1
ID 1
KS1
OK1
4
1
1
2
2
2
1
1
1
4
JBS USA Beef% JBS Net Revenue
7%
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2
4.7 4.84.5
5.3
5.8
3Q13 4Q13 1Q14 2Q14 3Q14
Net Revenue (US$ billion)
EBITDA (US$ million)
EBITDA margin (%)
Net revenue of US$5,849.3 million in the quarter, 24.7% higher than
3Q13: Increase in sales volume in both domestic and export markets;
Increase in prices;
Compared with 2Q14, net revenue posted an increase of 9.7%;
Main destinations of this business unit were Japan, Greater China andSouth Korea;
EBITDA totaled US$504.9 million, with EBITDA margin of 8.6%:
Company’ strategy regarding the purchase of cattle permitted theimprovement in COGS;
Seasonal stronger beef demand in a scenario which beef supply remainsconstraint, contributing to an increase in sales prices;
Australia operations performed well and contributed to the strong resultsof this quarter.
125.3 113.9
-22.5108.6
504.92.7% 2.4%
-0.5%2.0%
8.6%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
170.0
370.0
570.0
770.0
970.0
1170.0
3Q13 4Q13 1Q14 2Q14 3Q14
24.7%
9.7%
11%
21%
44% 17%
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3
PorkJBS USA
JBS USA Pork
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3
~ 51,300 hogs per day
03 hogs processing facilities
02 case ready facilities
01 lamb processing facility
100% in the US
Pork production in the United States
United States
CO 1
IA1
KY1
CA
1
1
02 case ready facilities
~3,000 lamb per day
Main Brands
Swift Premium
Dry Rubbed Ribs
Swift PremiumRubbed Loin Filet
Products
Swift Premium
Boneless Backrib
Swift PremiumBoneless Pork Chops
Operational Platform+6,000 employees
EBITDA LTM14Net Revenue LTM14 US$3.8 billionUS$396.2 million
10.5% Margin
Convenience productsNC
1
JBS USA Pork% JBS Net Revenue
44%
7%
17%
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903.3 904.9 896.91,028.3
937.8
3Q13 4Q13 1Q14 2Q14 3Q14
Net Revenue (US$ million)
EBITDA (US$ million)
EBITDA margin (%)
Net revenue of US$937.8 million in the quarter, 3.8% higher than
3Q13: Increase of 18.7% in sales prices in the domestic market and an increase
of 14.7% in export prices;
Compared with 2Q14, net revenue decrease 8.8%, due to lower volumes.
EBITDA of US$113.2 million, with EBITDA margin of 12.1%:
In comparison with 2Q14, EBITDA remained stable;
The maintenance of pork prices in higher levels due to constraint supply,coupled with a decrease in raw material costs contributed to this quarterresults.43.8
86.3 82.9113.8 113.2
4.8%
9.5% 9.2%11.1% 12.1%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
20.0
70.0
120.0
170.0
220.0
270.0
320.0
370.0
3Q13 4Q13 1Q14 2Q14 3Q14
11%
21%
44% 17%
3.8%
-8.8%
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3
Pilgrim’s Pride
JBS USA Chicken (Pilgrim’s Pride Corporation - “PPC”)
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3
United StatesOperational Platform
~ 7.5 million birds per day
24 poultry processing facilities
6.5 million in the US
250,000 in Porto Rico
800,000 in Mexico
Poultry production in the United States, Porto Rico and Mexico
TX10 distribution centers
Located in Mexico
Mexico
With Tyson acquisition, PPC will have an additional of threefacilities, adding 600,000 birds per day of capacity and 9,000employees
03 poultry processing facilities
10 distribution centers
4
1
3
AL
AR
1
NC 2
FL1
GA
7
KY 1
LA
Porto Rico
SC1
TN 1
VA1
WV1
01 processing facility
+ de 3,500 contract growers
36 hatcheries
28 feed mills
+39,000 employees
EBITDA LTM14Net Revenue LTM14 US$8.5 billionUS$1,176.3 million
13.8% Margin
JBS USA Chicken (Pilgrim’s Pride Corporation - “PPC”) % JBS Net Revenue
44%
7%
17%
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2.1 2.0 2.0 2.2 2.3
3Q13 4Q13 1Q14 2Q14 3Q14
Net Revenue (US$ billion)
EBITDA (US$ million)
EBITDA margin (%)
Net revenue of US$2,268.0 million in the quarter, increase of 5.8%
compared to 3Q13: In the US, sales increased 4.8%, of which 2.4% is due to an increase in
volume and 2.4% is due to an increase in prices, as a reflect of a changein product mix, with an improvement in the participation of small anddeboned small birds, in addition to convenience products;
In Mexico, revenue increased 15.0%, as a result of an increase in price perkilo, due to the restriction in the supply of eggs sets for incubation, as wellas in the number of chicks placed. This increase in revenue was partially
offset by a decrease in volume sold and by the devaluation of MexicanPeso.
EBITDA in 3Q14 was US$435.4 million, with EBITDA margin of19.2%:
Reduction of US$102.8 million in feed costs in the US and of US$12.5million in Mexico;
Reduction in costs with labor, freights and storage, packaging and in
contract growers, totaling US$13.8 million.
226.1 197.2 205.2
338.6
435.410.6% 9.6% 10.2%
15.5%19.2%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
70.0
170.0
270.0
370.0
470.0
570.0
670.0
3Q13 4Q13 1Q14 2Q14 3Q14
11%
21%
44%
5.8%
3.7%
Consumer Ready
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Production capacity in 2014: 19.8 thousand tons per month
Production capacity in 2015: 30.2 thousand tons per month
Increase in production: +52.8%
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Mission
“
”
To be the best in what we set out to do, completelyfocused 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.