1Q16 EARNINGS

PRESENTATION

A GLOBAL
FOOD
COMPANY
So Paulo, May 12th, 2016

CONSOLIDATED RESULTS
1Q16
2

1Q16 CONSOLIDATED HIGHLIGHTS

NET SALES (R$ MILLION)

GROSS PROFIT (R$ MILLION)

43,912

Gross Margin (%)

14.1%

33,819

10.8%

4,778

29.8%

4,764
-0.3%

1Q15

1Q16

1Q15

1Q16

| Expansion in net revenue of 29.8% compared to 1Q15.

| Stable gross profit over 1Q15.

1Q16 CONSOLIDATED HIGHLIGHTS

EBITDA (R$ MILLION)

NET INCOME (LOSS) (R$ MILLION)

EBITDA Margin (%)

8.2%
4.9%

2,758

-22.5%

1,394
1Q15

1Q16

2,137
-2,741

1Q15

1Q16

| Reduction in EBITDA impacted by Beef operations in North America.

| Loss in the quarter of R$2.7 billion, compressed by the FX variation results.

1Q16 CONSOLIDATED HIGHLIGHTS

OPERATIONAL CASH FLOW (R$ MILLION)

FREE CASH FLOW (R$ MILLION)

4,538
1Q15

1Q15

1Q16

1Q16

-72

-4,447
-5,208

| Operational cash flow of R$4.4 billion negative and free cash flow of R$5.2 billion
negative, impacted by the results with instruments related to protection against
exchange rate variation.

1Q16 CONSOLIDATED HIGHLIGHTS

RECORD OF FX VARIATION RESULTS AND JBS HEDGING POLICY (R$ Million)

1Q15

2Q15

3Q15

4Q15

1Q16

Results of
the last five
quarters

Results of FX
variations

-3,757.0

361.4

-6,074.7

245.4

1,854.0

-7,370.9

Derivative Results

4,489.0

-2,005.6

9,455.7

-1,335.8

-5,823.1

4,780.2

Net Results of FX
variations and
Derivatives

732.0

-1,644.2

3,381.1

-1,090.4

-3,969.1

-2,590.6

-7,370.9

4,780.2

-2,590.6

Resultado da variao cambial

1Q16 CONSOLIDATED HIGHLIGHTS

NET DEBT (US$ MILLION)

NET DEBT (R$ MILLION) / LEVERAGE

Leverage
Adjusted Leverage

2.29x

2.46x

33,221.1

34,824.1

1Q15

2Q15

3.84x

3.18x

3.60x

47,038.7

48,745.4

4Q15

1Q16

2.55x

41,707.1

13,696.8
10,355.7 11,224.2 10,497.9 12,046.4

1Q15

2Q15

3Q15

4Q15

1Q16

3Q15

| Cash Position 1Q16: R$15,287.2 million

RECENT INVESTMENTS IN ACQUISITIONS AND INCREMENTAL EBITDA CONSIDERED TO CALCULATE

PROFORMA EBITDA

Total investment in acquisitions from 1Q15 to 1Q16: R$21 billion

Incremental EBITDA in the last 12 months: ~R$1.0 billion

Note 1. Leverage considers the proforma results of recent acquisitions (Company estimates)

1Q16 CONSOLIDATED HIGHLIGHTS

BREAKDOWN BY CURRENCY
AND COST

BREAKDOWN BY SOURCE

BREAKDOWN BY COMPANY

14.63% p.a.
R$
9%

Commercial
Banks
Capital
58.87%
Markets
41.10%

US$
91%

5.00% p.a.

JBS USA
45%

JBS S.A.
46%

JBS Foods
9%

BNDES
0.03%

MATURITY (R$ MILLION)

17,841
10,028
5,547

Short Term
Note 1. Net of Cash

3,109

4,087

2017

2018

5,958
2,175
2019

2020

2021

After 2021
8

1Q16 CONSOLIDATED HIGHLIGHTS

DEBT PROFILE ST/LT
1Q15
2Q15
3Q15

29%

SHORT TERM DEBT BREAKDOWN BY TYPE

71%

33%

67%

29%

Working
Capital
13%

Others
8%

Bonds
7%

71%

4Q15

32%

68%

1Q16

33%

67%
Short Term

Long Term

Trade
Finance
72%

BUSINESS UNITS
1Q16
10

JBS FOODS 1Q16

NET REVENUE (R$ MILLION)

EBITDA (R$ MILLION)

15.9%

13.5%

4,286.6

3,874.5

616.0
-5.9%

10.6%

1Q15

579.5

1Q16

1Q15

1Q16

| Growth in revenue due to increase in sales prices and volumes.

| Market share evolution in all product categories assessed by Nielsen.
| Increase in production costs impacted EBITDA margin.
| New visual identity and renewal of packaging of Seara brand.

11

JBS MERCOSUL 1Q16

NET REVENUE (R$ MILLION)

EBITDA (R$ MILLION)

10.9%

6,983.4

6,782.3

5.6%

761.4

3.0%

376.4

1Q15

1Q16

102.3%

1Q15

1Q16

| Increase in sales prices of fresh beef in domestic and international

markets.
| Reduction in the number of livestock processed.
| Increase of exports, boosted by the Chinese market, which
presented an increase of 200% in 1Q16 compared with 1Q15.

12

JBS USA BEEF 1Q16

NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)

5,190.5
4,649.6

3.6%
-4.6%

186.6

-10.4%

Swift
(bolinha) e
Primo

1Q15

1Q16

1Q15

1Q16
-214.8

| Mark-to-market position of physical cattle purchase in the US and

Canada.
| Decrease in the number of livestock processed in Australia.
| Reduction in prices of fresh beef both in domestic and international
markets.
| Appreciation of AUD vs. USD.
13

JBS USA PORK 1Q16

NET REVENUE (US$ MILLION)
1,256.6

EBITDA (US$ MILLION)

12.2%
8.1%

762.3

64.8%

102.1

93.2
9.5%

1Q15

1Q16

1Q15

1Q16

| Expansion of revenue due to incorporation of Cargill Pork assets,

acquired in 2015.
| Increase in exports, mainly to the Asian market.
| Integration of Cargill Pork

14

JBS USA CHICKEN (PPC) 1Q16

NET REVENUE (US$ MILLION)

EBITDA (US$ MILLION)

17.7%

2,052.9

1,962.9
-4.4%

1Q15

11.9%

363.5
-35.8%

1Q16

1Q15

233.5

1Q16

| Reduction in sales prices in the US and in international market.

| Increase in sales in Mexico, boosted by the acquisition of assets in
the region.
| Conversion of one facility in the US to produce USDA-certified
organic chicken.
| Distribution of special dividends in the amount of US$700.0 million.
15

JBS EUROPE (MOY PARK) 1Q16

NET REVENUE ( MILLION)
353.2

347.5
-1.6%

EBITDA ( MILLION)
8.8%

8.0%

30.6

28.2
8.2%

1Q15

1Q16

1Q15

1Q16

| Decrease in sales prices, offset by an increase in volume sold in UK

and Ireland.
| Improved operational efficiency with focus on cost control.
| Synergies capturing due to integration with JBS.

16

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.

17

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 Companys 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.