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4Q15 AND 2015
EARNINGS
PRESENTATION
A GLOBAL
FOOD
COMPANY
São Paulo, March 17th, 201
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CONSOLIDATED RESULTS2015
2
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3
2015 CONSOLIDATED HIGHLIGHTS
Gross Margin (%)
CONSOLIDATED NET SALES (R$ MILLION) CONSOLIDATED GROSS PROFIT (R$ MILLION)
| Sales growth with an expansion of R$42.4 billion (+35.2%) y-o-y.
| Increase of 21.0% in gross profit.
120,470
162,915
2014 2015
35.2%
18,673
22,590
15.5%13.9%
2014 2015
21.0%
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4
2015 CONSOLIDATED HIGHLIGHTS
EBITDA Margin (%)
CONSOLIDATED EBITDA (R$ MILLION) CONSOLIDATED NET INCOME (R$ MILLION)
| Increase of 20% in Consolidated EBITDA .| Incremental EBITDA of acquisitions concluded throughout the year and not included in JBS results
corresponds to R$1.5 billion¹.
| Expansion in net income of 128% over 2014.
11,090
13,300
9.2%8.2%
2014 2015
19.9%
2,036
4,640
0.71
1.60
2014 2015
EPS (R$)
127.9%
Note 1. Tyson de México, Primo Group, Moy Park, Cargill Pork, among others.
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8,987
21,206
2014 2015
5
OPERATIONAL CASH FLOW (R$ MILLION) FREE CASH FLOW EX-ACQUISITIONS (R$ MILLION)
| Strong operational cash generation.
| Free cash flow after CAPEX and before acquisitions was R$17.0 billion.
2015 CONSOLIDATED HIGHLIGHTS
136.0%
169.3%
6,295
16,955
2014 2015
169.3%
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9,475 12,046
2014 2015
25,169
47,039
2.10x
3.18x
2014 2015
6
NET DEBT
(US$ MILLION)NET DEBT
(R$ MILLION)/ LEVERAGE
2.91x¹
Note 1. Leverage considers the proforma results of recent acquisitions (Company estimates)
2015 CONSOLIDATED HIGHLIGHTS
RECENT ACQUISITIONS CONSIDERED TO CALCULATE PROFORMA EBITDA¹
| Tyson de Mexico
| Primo Group
| Moy Park
| Big Frango
| Anhambi
| Cargill Pork
| Total cost: ~US$5.0 billion / R$20.0 billion
| Incremental EBITDA in the year: ~R$1.5 billion
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PRIORITIES IN 2016
Organic growth
Operational excellence
Reduction in working capital
Free cash flow generation
Reduction in leverage
More efficient tax structure
Return on Equity ROE)
Focus on prepared and branded products
9
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CONSOLIDATED RESULTS4Q15
10
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34,303
47,161
4Q14 4Q15
5,436
5,694
15.8%12.1%
4Q14 4Q15
11
4Q15 CONSOLIDATED HIGHLIGHTS
CONSOLIDATED NET SALES
(R$ MILLION)CONSOLIDATED GROSS PROFIT
(R$ MILLION)
| Expansion in net revenue of 37.5% compared to 4Q14.
| Increase in gross profit from R$ 5.4 billion in 4Q14 to R$ 5.7 billion in 4Q15.
37.5%
Gross Margin (%)
4.7%
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3,290 3,132
9.6%
6.6%
4Q14 4Q15
12
4Q15 CONSOLIDATED HIGHLIGHTS
| Reduction in EBITDA impacted by Beef and Chicken operations in North America.
| Loss in the quarter due to non-recurring expenses of R$ 460.6 million.
-4.8%
EBITDA Margin (%)
CONSOLIDATED EBITDA
(R$ MILLION)CONSOLIDATED NET INCOME LOSS)
(R$ MILLION)
619
-275
4Q14 4Q15
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4,437
2,552
4Q14 4Q15
5,320
3,578
4Q14 4Q15
13
| Operational Cash Flow generation of R$ 3.6 billion in 4Q15.
| Free cash flow after CAPEX and before acquisitions was R$2.6 billion in 4Q15.
4Q15 CONSOLIDATED HIGHLIGHTS
-42.5%
-32.7%
OPERATIONAL CASH FLOW
(R$ MILLION)FREE CASH FLOW EX-ACQUISITIONS
(R$ MILLION)
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BUSINESS UNITS2015 AND 4Q15
14
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2,052.3
3,371.8
15.9% 18.0%
2014 2015
12,890.3
18,715.1
2014 2015
15
JBS FOODS 2015
| Growth in sales due to acquisitions and organic.
| Launching of more than 100 products in 2015, focused on innovationand convenience.
| Improvement in service levels.
| Solid results in 2015 with EBITDA margin expansion.
NET REVENUE
(R$ MILLION)EBITDA
(R$ MILLION)
45.2% 64.3%
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26,191.7
28,622.2
2014 2015
17
JBS MERCOSUL 2015
| Revenue growth due to an increase in sales prices.
| Reduction in the number of livestock processed and in the volumesold.
| Profitability maintained, despite adverse conditions in the market.
| Opening of new export markets.
2,319.0 2,315.1
8.9% 8.1%
2014 2015
9.3%
-0.2%
NET REVENUE
(R$ MILLION)EBITDA
(R$ MILLION)
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534.1
921.1
7.1%
12.3%
4Q14 4Q15
7,545.7 7,487.6
4Q14 4Q15
18
JBS MERCOSUL 4Q15
| Increase in sales prices offset the reduction in volume sold.
| Expansion of 72.5% in EBITDA and strong margin improvement.
| Recovery in exports with diversification of market destinations.
-0.8%
NET REVENUE
(R$ MILLION)EBITDA
(R$ MILLION)
72.5%
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JBS USA BEEF 2015
Swift
(bolinha) e
Primo
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
| Slight improvement in sales via increase in volumes.
| Maintenance of cow/heifer retention generating reduced availabilityof cattle.
| Perspective of growth in the cattle herd from 2016 onwards shouldbenefit the profitability of the industry.
| Increase in sales of value added products in Australia.
21,625.2 22,134.0
2014 2015
916.1
586.7
4.2%2.7%
2014 2015
2.4%
-36.0%
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5,923.7
5,250.7
4Q14 4Q15
20
JBS USA BEEF 4Q15
Swift
(bolinha) e
Primo
| Reduction in beef prices and devaluation of AUD impactedrevenues.
| Increase in average weight caused over supply of beef in themarket.
| High volatility in cattle prices during the quarter.
| Reduction in gross margin and EBITDA.
-11.4%
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
325.1
-25.2
5.5%
-0.5%
4Q14 4Q15
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21
JBS USA PORK 2015
| Increase in volume sold impacted sales prices.
| Stability of operational margins.| Relevant synergy capturing through the integration of acquired
assets.
3,827.03,430.4
2014 2015
405.6347.5
10.6% 10.1%
2014 2015
-10.4%
-14.3%
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
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95.7
141.39.9%
13.0%
4Q14 4Q15
964.0
1,087.7
4Q14 4Q15
22
JBS USA PORK 4Q15
| Beginning of Cargill Pork assets integration in 4Q15.
| Expansion in EBITDA and EBITDA margin.
| Recovery of exports, mainly to South Korea and Mexico.
12.8%
47.6%
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
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8,583.48,180.1
2014 2015
23
JBS USA CHICKEN (PPC) 2015
| Lower sales prices impacted revenues.
| Diversification in the product portfolio and sales channels permitted
JBS to deliver solid and consistent results in 2015.
| Management identified US$185 million in operational improvementsfor 2016.
| Expansion of Mexican operations.
1,352.21,213.5
15.8% 14.8%
2014 2015
-10.3%
-4.7%
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
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2,110.41,960.8
4Q14 4Q15
367.8
150.0
17.4%
7.6%
4Q14 4Q15
24
JBS USA CHICKEN (PPC) 4Q15
| Adverse and seasonal conditions impacted revenue and EBITDA.
| Reduction in prices in the international market.
| Case ready and small bird operations continued to deliver strongresults.
| Investments in innovation and customization of products to meet theneeds of key clients.
-7.1%
-59.2%
NET REVENUE
(US$ MILLION)EBITDA
(US$ MILLION)
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Mission
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Mission
“ To be the best in what
we set out to do,completely focused onour business, ensuring the
best products and
services for ourcustomers, consistencyfor our suppliers,
profitability for our
shareholders and theopportunity of a betterfuture for all our team
members.
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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 projectionsand, as such, are based exclusively on the expectations of JBS’ management concerning the future of thebusiness and its continued access to capital to fund the Company’s business plan. Such forward-lookingstatements depend, substantially, on changes in market conditions, government regulations, competitivepressures, 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.
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