JBS Institutional Presentation

Including 4Q14 and 2014 Results

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.

JBS Global

Net Revenue of R$120.50 billion in 2014

Prepared
products and
others
27%

Pork
7%

Bovines
49%

Poultry
17%

Note 1. Based on 2013 Net Sales

Capacity to process

Revenue
2014
R$120.5 bi

Second largest global food company according to Bloomberg ranking

100,000 bovines per day in 73 units in seven countries

Capacity to process 72,000

States

Capacity to process more

in the Americas

hogs per day in 11 units in Brazil and the United

than 13 million birds per day in 58 units

Capacity to produce more than 100 thousand hides per day in 31

units worldwide

More than 215 thousand employees around the world

3

Breakdown of JBS Net Revenue and EBITDA

Breakdown of JBS Net Revenue
JBS
Mercosul
23%

US$
47%

JBS USA
66%

Revenue in
R$
17%

R$
53%

US$
100%

US$
51%
R$
49%

JBS Foods
11%

Revenue in
US$
83%

Breakdown of JBS EBITDA

JBS
Mercosul
22%
US$
47%

JBS USA
59%

US$
100%

EBITDA in
R$
21%

R$
53%
US$
51%
R$
49%

JBS Foods
19%

EBITDA in
US$
79%

With 83% of net revenue and 79% of EBITDA linked to US dollars, the

strengthening of this currency is highly positive for the performance of JBS.

4

JBS Evolution
Net Revenue (R$ billion)

120.5

+297%

92.9
75.7
54.7
30.3

34.3

2008

2009

2010

61.8

2011

2012

2013

2014

EBITDA (R$ million)

9.2%

EBITDA margin (%)

11,090.0
6.6%
6,4 %
3.8%

5.8%
5.0%

3.7%

1,156.1

1,285.2

2008

2009

6,130.3
4,410.3

3,497.0

3,072.0

2010

2011

2012

2013

2014

JBS 10 Priorities in 2015

Focus on organic growth and not on acquisitions

Operational excellence
Reduction in working capital cycle
Free cash flow generation
Continuous deleveraging
Debt cost reduction
Improvement of JBS corporate ratings
Reduction of effective tax rate

Net income and earnings per share

Return on Equity (ROE)
6

Market Analysis

Worlds Food* Surpluses and Deficits

Net intra-regional trade, million tonnes

200,000
150,000
100,000
50,000

Other
Developed

North America
-50,000

Latin America
and Caribbean

Oceania
Developed

Africa

Asia

Europe

-100,000
-150,000
-200,000
-250,000
-300,000
2013

Cereals, dairy, fish, meat, oilseeds and sugar.

Source: OECD-FAO Agricultural Outlook 2014-2023

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sector Overview: Beef

Global Beef Production

Global Beef Production Forecasts

(mm tons cwe)

2013

CAGR (%)

USA
16%

Others

USA

100.0
Others
43%

67.2

75.0

Brazil
15%

67.4

68.2

68.7

69.8

71.0

Brazil

2013 - 2023

72.1

Brazil 1.4%
USA 0.1%
World 1.2%

72.9

73.9

74.8

75.6

50.0
25.0

India*
5%
Source: FAO
*Buffaloes

China
10%

E.U.
11%

0.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Source: FAO

Total: 67.2 mm tons cwe

Both Brazilian and American beef production should increase approximately

1mm tons until 2023, reaching 10.3 mm and 11.3 mm tons, respectively

Brazil and the U.S. are responsible for 31% of the worlds beef production

Global Beef Consumption

2013

Per Capita Consumption

Beef Trade Commerce in 2013 (mm tons cwe)

(kg/capita) 2013

#
E.U.
11%

China
10%

Argentina
4%

Brazil
13%

Argentina

42

Uruguai

33

Brasil
Others
45%

USA
17%

30

EUA

Largest importers

Brazil

1,849

20%

Russia

1,031

14%

India*

1,765

19%

USA

1,021

14%

Australia

1,593

17%

Japan

760

10%

USA

1,172

13%

Hong Kong

473

6%

New Zealand

529

6%

China

412

6%

25

Austrlia
China

24
3.4

Total 2013: 67.7 mm tons cwe

Source: FAO
*cwe = carcass weight equivalent

Largest exporters

Global avg.: 6.6 Kg

JBS is present in the main beef exporting countries

Source: USDA
*Buffaloes

Sector Overview: Poultry

Global Poultry Production

Global Poultry Production Forecasts

(mm tons rtc)

2013
Others
35%

Others
150.0
120.0

China
16%
Mexico
3%
Russia
4%

CAGR (%)

USA
18%

USA

Brazil

2013 - 2023

129.0 131.8 134.5

117.8 120.5 123.3 126.3
107.4 110.0 112.6 115.3

Brazil 1.7%
USA 2.2%
World 2.3%

90.0
60.0

E.U.
12%

30.0

Brazil
12%

0.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E

Total 2013A: 107.4 mm tons rtc

Source: FAO

Source: FAO

Poultry production should increase around 25% in the period from 2013 to 2023,
reaching 134.5 mm tons

Brazil and the U.S. are responsible for 30% of the worlds beef production

Global Poultry Consumption

Per Capita Consumption

Poultry Trade Commerce in 2013 (mm tons rtc)

(kg/capita) 2013
China
17%
Others
39%

Mexico
3%

50
48

USA
15%

India
2%
Brazil
Russia 9%
4%

Global avg:12,8Kg

45

E.U.
11%

Largest exporters

Largest importers

Brazil

3,755

34%

Japan

850

8%

USA

3,692

33%

Mexico

835

8%

E. U.

1,235

11%

Saudi Arabia

810

7%

Thailand

540

5%

E.U.

760

5%

China

415

4%

Russia

554

4%

34
32

China should
reach 14kg/capita
by 2023

10

Total 2013: 107.4 mm tons rtc

JBS is present in the main poultry exporting countries
Source: FAO
*rtc = ready to cook

Source: USDA

10

Sector Overview: Pork

Global Pork Production

Global Pork Production Forecasts

(mm tons cwe)

2013
Others
18%
Vietnan
3%

Others
150.0

120.0

Brazil
3%

CAGR (%)
USA

Brazil

2013 - 2023

125.2 126.7 128.1 129.4

115.4 116.9 118.8 120.3 121.4 122.7 123.8

Brazil 1.6%
USA 1.0%
World 1.2%

90.0

China
48%

60.0

USA
9%

30.0
0.0

E.U.
19%

2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E

Total 2013A: 115.4 mm tons cwe

Source: FAO

Source: FAO

Brazil and the US are two of the worlds largest pork producers

Per Capita Consumption

Global Pork Consumption

Pork production should increase 12% in the period from 2013 to 2023, reaching 129.4
mm tons in 2023

Pork Trade Commerce in 2013 (mm tons cwe)

(kg / capita) 2013

Brazil
3%

Others
18%

Vietnan
3%

Largest importers

USA

2,292

32%

Japan

1,240

18%

E.U.

2,204

31%

Russia

900

13%

Canada

1,245

18%

Mexico

785

11%

Brazil

600

9%

China

750

11%

China

250

4%

Hong Kong

400

6%

40

China
48%
27

Russia
3%
USA
7%

Largest exporters

61

22

E.U.
18%

14

Total 2013A: 115.2 mm tons cwe

Global avg. 2013A: 14.9Kg

JBS is present in the main pork exporting countries

Source: FAO
*cwe = carcass weight equivalent

Source: USDA

11

Consolidated Results

12

2014 and 4Q14 Highlights - Consolidated

Consolidated Net Sales (R$ Million)

Consolidated Gross profit (R$ Million)

Net Revenue of R$120.5 billion in 2014, an increase of R$27.6 billion, or 29.7% higher

Gross profit of R$18.7 billion in 2014, growth of R$6.9 billion, an increase of 57.9%

than 2013.

in 2013.

In 4Q14, net revenue was R$34.3 billion, expansion of R$7.1 billion, or 26.0% higher

In 4Q14, gross profit was R$5.5 billion, an improvement of R$1.7 billion, 45.7%

than 4Q13.

higher than 4Q13.

15.5%

Gross Margin (%)

120,470
92,903
34,303

27,222

13.7%

3,732

4Q14

2013

2014

18,673

11,847

29.7%

26.0%

4Q13

15.8%

12.8%

57.6%

5,436
45.7%

4Q13

4Q14

2013

2014

Consolidated EBITDA (R$ Million)

Consolidated Net Income (R$ Million)

EBITDA of R$11.1 billion in 2014, expansion of R$4.96 billion, or 80.9% greater than

Net Income of R$2.04 billion, growth of R$1.1 billion, or 119.6% higher than 2013, which

2013.

corresponds to an earnings per thousand shares of R$706.5.

In 4Q14, EBITDA was R$3.3 billion, an increase of R$1.4 billion, or 75.6% greater

In 4Q14, net income was R$618.8 million, an improvement of R$478.1 million, or 339.7%

than 4Q13.

greater than 4Q13, equivalent to an earnings per thousand shares of R$214.1.

EBITDA Margin (%)

Earnings per Thousand Shares

9.6%

9.2%
6.6%

11,090

6.9%
1,874
4Q13

3,290

4Q14

49.0

6,130

2013

618.8

2,036

323.3
927
119.6%

339.7%

80.9%

75.6%

214.1

706.5

141

2014

4Q13

4Q14

2013

2014

13

2014 and 4Q14 Financial Highlights - Consolidated

Net Operating Cash Generation (R$ Million)

Free Cash Generation (R$ Million)

Net operating cash generation of R$9.0 billion in 2014, expansion of R$6.4 billion, or

Free cash generation of R$4.7 billion in 2014, growth of R$4.1 billion, or 641.6%

253.7% higher than 2013.

superior than 2013.

In 4Q14, net operating cash generation was R$5.3 billion, an increase of R$5.0

In 4Q14, free cash generation was R$3.7 billion, an improvement of R$3.9 billion

billion, or 1,399.5% greater than 4Q13.

compared to 4Q13.

8,987

5,320

4,710
253.7%

3,665

2,541

641.6%

1399.5%

355

635

-230

4Q13

4Q14

2013

2014

4Q13

4Q14

2013

2014

Net Debt (R$ Million) / Leverage

Net Debt (US$ Million)

Net debt was R$25.2 billion at the end of 2014.

Reduction of net debt in US dollars of US$1.0 billion compared to 3Q14.

Leverage ended 2014 at 2.1x, a substantial reduction in comparison with 2013, when

leverage was 3.7x.

Net debt in US dollars converted at the exchange rate at the end of each period.
10,464

3.7x

11,221

10,546

9,475

2.1x
23,748

25,169

2013

2014

1Q14

2Q14

3Q14

4Q14

14

JBS Consolidated Exports Breakdown in 2014 and 2013

Canada
2.4%
South Korea
5.0%

South America
15.9%
Africa and Middle East
12.3%

2014
US$16,223.2
million

E.U.
6.4%

Growth of 38% in 2014 exports

compared to 2013

Others
8.7%

Greater China
11.8%

Russia
6.8%
USA
8.6%

South America 15.5%

Others 12.7%

Japan
10.8%

Mexico
11.3%

Mexico 14.2%

Canada 3.3%

2013
US$11,760.6
million

South Korea 4.9%

Russia 5.8%

Africa and Middle East 11.4%

E.U. 6.0%

USA 6.5%
Greater China 9.8%

Note 1. China and Hong Kong

Japan 10.1%

15

Capex, Cash Generation,

Working Capital and Debt
Profile

16

Capex, Cash Generation and Working Capital

Cash Generation

In 4Q14 the Company generated net cash from operations of R$5.32 billion and free cash of R$3.66 billion.
In 2014, JBS generated R$9.0 billion in net cash from operations and R$4.7 billion in free cash.
In 4Q14, the total CAPEX of JBS was R$1,654.4 million, from which:

CAPEX

56% were related to acquisitions and the remaining balance corresponds to expenditures with expansions,
modernization and maintenance of JBS facilities.
In 2014, CAPEX was R$4,276.8 million.

Working Capital has been closely monitored:

20,000

12.1%

12.0%
10.9%

16,000

10.9%

10.7%
9.2%

Working Capital

12,000
8,000
4,000
0
3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

Note1. Working Capital calculated as the total current assets excluding cash and cash equivalents, less total current liabilities excluding short term loans and financing and declared dividends
To calculate LTM Net Revenues of JBS USA, the Company used the dollar rates of the last day of the period (closing rate). This criteria is intended to equalize the WC (Balance Sheet figures) and Net Revenues at the same exchange rate.

17

Debt Profile

Leverage (Net Debt/EBITDA LTM)

Net Debt (US$ Milhes)

8,000
7,000

3.7x

3.3x

6,000

3.2x

10.464

2.5x

5,000

11.221

10.546

9.475

2.1x

4,000

JBS ended 4Q14 with leverage of 2.1x,

compared to 2.5x in 3Q14.

Net debt in US dollars reduced US$1.0

billion in comparison with 3Q14.

3,000
2,000

1,000
0

4Q13

1Q14

2Q14

EBITDA (R$ million)

3Q14

4Q14

Leverage

Breakdown by Currency and Costs

1Q14

2Q14

3Q14

4Q14

Net debt in US dollars converted at the exchange

rate at the end of the period.

Breakdown by Source

Breakdown by Company
BNDES 0.1%

11.57% per annum

R$
20%

Commercial
banks 59.9%

US$
80%

Subsidiaries
28%

Capital
markets
40.0%

JBS Foods
14%

JBS S.A.
58%

5.49% per annum

18

Debt Profile and Maturity

Debt Profile

The Company ended the quarter with R$14,910.4 million in

cash, equivalent to approximately 109% of its short-term
debt.

4Q13

29%

71%

1Q14

29%

71%

JBS USA has US$1.43 billion fully available under revolving

credit facilities which, if added to the current cash position,
represents 119% of short term debt.

2Q14

28%

72%

3Q14

30%

70%

The percentage of short term debt (ST) in relation to total debt

was 34% in 3Q14.

4Q14

34%

66%

Short Term

Long Term

Maturity (R$ million)

6,100

5,747
4,773

4,625

3,038
1,771
338

-1,223
Short term*

* Net of Cash

2016

2017

2018

2019

2020

2021

after 2021

19

JBS Foods

20

JBS Foods
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
Operational Platform

Brazil

+66,000 employees2

5.6 million birds per day

AM

Production units located in the south,

CE

southeast and mid-west regions

1

MT

21,200 hogs per day

Production units located in the south

MS
1

MG

SP

southeast, northeast and mid-west

regions

In 13 states

PR
5

23 PFP units

3
1

RS SC

Production units located in the south,

19 distribution centers

1
2
1

80 thousand tons per month

08 slaughterhouses and deboning units

DF
1

and mid-west regions

30 slaughterhouses and deboning units2

PE

BA

RJ

3
7

19 distribution centers

2nd largest producer and exporter of poultry and pork in Brazil

Large production platform, with 61 production units1,2 and nearly 66,700employees
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

Net Revenue 2014

R$12.8 billion

EBITDA 2014

R$2,052.4 million
15.9% Margin

Notes. Industrial Complex: location with one or more units of production; 2 Includes Big Frango acquired units, approved in January/15 and incorporated in 1Q15; 3 Total produced volume of PFP, poultry and pork of 186 mm tons,
391 mm tons and 47 mm tons in 4Q14, respectively. Total export volume of 315 mm tons in 4Q14.

21

JBS Foods
JBS Foods identified target potential gains of R$1.2 billion since acquiring Seara in 3Q13, which have been fully
realized in 2014, R$529 million ahead of schedule for the period
Results from Main Initiatives

Livestock

Actual (R$ mm)

Review of nutritional standards

Use of alternative ingredients
Review of ingredients nutritional standards
Focus change to guarantee animal health

Target vs. Actual 14 Identified Potential Gains (R$ mln)

1,749

190

529

+43%

1,219

Industrial

Productivity improvements
Increase in operational yields
Automation of processes
Foot-print review

420

Pricing and
Sales

Simplification of "Go to Market strategy

Redefinition of brand strategy
Superior product quality
Price repositioning
Increase sales force productivity

710

Logistics /
Distribution

Reduction of sea freight from scale gains with JBS

Reduction of product losses from shelf life expiration
Increase in service level
Revision of logistics network

R&D

Product formula standardization

Packaging optimization

Potential Gains 2014

Actual Gains 2014

Additional Gains 2014

Average FPP Price Increase Since Seara Acquisition (%)

216

8.4%

90
22.8%
14.4%

Finance /
Administrative

Optimization of administrative offices

Redesign and standardization of processes
Loss reductions
Shift from third-party to in-house IT services

Source: JBS Foods

Note: 1. Average FPP (Further Processed Products) price increase since the acquisition of Seara (Sep/2013)

123

Actual Price Increase

Mix Optimization

Average Price
Increase

22

JBS Foods
JBS Foods has streamlined and repositioned its brand portfolio and increased the efficiency of its commercial and
marketing strategy, with a high brand recognition among consumers
JBS Foods Market Position in Main Product Categories

Brands

Products

Old Mkt Share1

Mkt Share Novo

Ranking

+8.3 pp
Frozen

16.3%

24.6%

Dec/Jan - 14

Dec/Jan - 15

2nd

+2.8 pp
Chilled

11.8%

14.6%

Jan/Feb - 14

Nov/Dec - 14

2nd

+12.6 pp
Pizzas & Pastas

18.4%

31.0%

Jan/Feb - 14

Nov/Dec - 14

2nd

+0.7 pp
Margarine

Source: Nielsen
1
Includes Excelsior in Nov/Dec-14 and Macedo for Frozen in Dec/Jan-15

6.9%

7.6%

Dec/Jan - 14

Dec/Jan - 15

3rd

23

% NR JBS S.A.

JBS Foods

7%

44%

16%

11%
22%

Net Revenue (R$ million)

26.2%

2,891.6

2,780.0

3,084.5

3,376.8

3,649.0

Net revenue of R$3,649.0 million in 4Q14, an increase of 8.1%

compared to 3Q14

Increase in sales volumes in the three product categories in the domestic

market. The main highlights were fresh chicken (+50.8% vs 3Q14).

Increase of 4.9% in fresh pork prices in the domestic market.
8.1%

Higher volume (+4.8%) and higher prices (+6.7%) in exports of

prepared/pre cooked products.

4Q13

1Q14

2Q14

3Q14

4Q14

EBITDA (R$ million)

13.7%

14.3%

7.9%

227.3

379.8

440.4

17.1%

576.0

18.0%

656.1

EBITDA totaled R$656.1 million, which represents an increase of

13.9% over 3Q14. EBITDA margin was 18.0%

Decrease in raw material costs.

Seasonal increase in demand in chicken products due to the festive period.

Improvement in chicken prices in the international market, which

4Q13

1Q14

2Q14

3Q14

4Q14

corresponds to 83% of sales in exports.

EBITDA margin (%)

24

JBS Mercosul

25

JBS Mercosul
Beef production in Brazil, Argentina, Paraguay and Uruguay, in addition to leather and other Related Business
Operational Platform

Brazil

+70,000 employees
PA
AM

~ 55,000 bovines per day

92% in Brazil, 3% in Argentina, 3% in

Paraguay and 2% in Uruguay

90,000 hides per day

AC
1
1

RO

MA

2
4

MT
6

15

3
4

3
1
9

3
1
5

China, Vietnam and Mexico

4
2
2

2
1
2

44 distribution centers

06 feedlots

MG

29 tanneries
1

PR

47 beef processing facilities

PE

3
2

6 GO

MS

2
1

BA
1

Facilities in Brazil, Argentina, Uruguay,

CE

ES

RJ
2

43 distribution centers

SP

SC

RS

11 central and 32 regional in Brazil

and 01 in Argentina

09 related businesses

05 beef processing facilities

01 distribution center
01 tannery

Argentina
Leadership in beef production

Biodiesel
Can making
Collagen
JBS Carriers

Paraguay
JBS is the leader in beef processing and has around 25% of market share in
exports of Paraguay

Trading

Uruguay

Hygiene and Clean

Great access to export markets; the only country to export fresh beef to the US

Casings
TRP Complementary to JBS
Carriers

Recycling

Net Revenue 2014

R$26.2 billion

EBITDA 2014

02 beef processing facility

01 tannery

01 beef processing
02 tanneries
R$2,319.0 million
8.9% Margin
26

% NR JBS S.A.

JBS Mercosul

7%

44%

16%

11%
22%

Net Revenue (R$ million)

Net revenue of R$7,545.7 million in 4Q14, 19.5% higher than 4Q13:

Increase in fresh beef prices in the domestic and international markets.

19.5%

Paraguay and Uruguay operations maintained the good performance of

6,312.0

5,725.3

6,291.4

6,470.5

In Argentina, JBS continues focused on rationalizing its product portfolio,

16.6%

4Q13

1Q14

2Q14

3Q14

previous quarters.

7,545.7

reducing costs and increasing the value added products portfolio.

4Q14

EBITDA (R$ million)

11.0%

692.4

10.4%

10.1%

8.6%

596.1

634.3

554.6

7.1%

EBITDA totaled R$534.1 million for the quarter. EBITDA margin was
7.1%.

Increase in cattle prices in the period, partially compensated by an increase

in fresh beef prices in the domestic and international markets.

534.1

JBS maintained its strategy of investing in brands and in product innovation

in the domestic market.

4Q13
EBITDA margin (%)

1Q14

2Q14

3Q14

4Q14

The launching of convenience beef products reflected in an increase in the

average sales price in this category (prepared products) of 16.1% in the

domestic market.

27

Beef
JBS USA

28

JBS USA Beef

Beef production in the United States, Canada and Australia
Operational Platform

United States

+30,000 employees
WI

~40,000 bovines per day

1
1

ID

28,000 in the US

NE
UT

4,000 in Canada

CO

PA

1
4

8,000 in Australia

KS

09 beef processing facilities

OK

AZ

11 feedlots

11,000 hides per day

MI

01 tannery

TX

5,000 in the US

3
1

6,000 in Australia

06 carriers units

16 feedlots (bovine)

13 processing facilities

Australia

11 in the US/ Capacity of 1.0 million

4

bovines

01 in Canada / Capacity of 70,000

bovines

1
4

05 in Australia / Capacity of 152,000

bovines

07 distribution centers
1

Leadership in beef exports

Leadership in the processing of lamb (22,000 lamb per day)
#1st in the Food Industry Ranking
Growth of 17% in revenues from 2013 to 2014

Canada
Growth of 49% in revenues from 2013 to 2014

07 DCs in Australia and 06 carriers

08 bovine and 05 lamb

07 feedlots
05 bovine and 02 lamb

01 tannery
07 distribution centers
03 case ready facilities
01 beef processing facility
01 feedlot (bovine)
01 trading

units in the US

Net Revenue 2014

Note 1. Source: Food&Drink Business Magazine

US$21.6 billion

EBITDA 2014

US$916.1 million
4.2% Margin
29

% NR JBS S.A.

JBS USA Beef (including Australia and Canada)

7%

44%

16%

11%
22%

Net Revenue (US$ million)

23.2%

Net revenue in 4Q14 was US$5,923.7 million, an increase of 23.2%

compared to 4Q13.

Increase in prices of 26.4% and 25.8% in the domestic and international

4,809.9

4,520.7

5,331.4

5,849.3

5,923.7

Compared with 3Q14, net revenue was increased 1.3%.

1.3%

4Q13

1Q14

2Q14

3Q14

markets, respectively, partially compensated by a decrease in volume in

both markets.

4Q14

EBITDA (US$ million)

8.6%
2.4%

-0.5%

2.0%

5.5%

504.9
325.1
113.9
4Q13
EBITDA margin (%)

-22.5
1Q14

EBITDA was US$325.1 million, with a margin of 5.5%:

Strategy regarding the purchase of cattle, which permitted the improvement in

COGS.
Better beef prices in some markets that JBS operates.

Domestic sales in Australia and exports from the US were highlights in the

108.6

quarter, with significant price increases.

2Q14

3Q14

4Q14

The operation in Canada also improved compared to the same period last

year and presented volume and price growth in exports.

30

Pork
JBS USA

31

JBS USA Pork

Pork production in the United States
Operational Platform

United States

+6,000 employees

~ 51,300 hogs per day

MN
1

100% in the US
IA
1

02 case ready facilities

03 hogs processing facilities

CO
1

Convenience products

KY

CA

NC
1

02 case ready facilities

~3,000 lamb per day

01 lamb processing facility

Products

Main Brands
Swift Premium
Dry Rubbed Ribs

Swift Premium
Boneless Backrib

Net Revenue 2014

Swift Premium
Rubbed Loin Filet

Swift Premium
Boneless Pork Chops

US$3.8 billion

EBITDA 2014

US$405.6 million
10.6% Margin
32

% NR JBS S.A.

JBS USA Pork

7%
44%

16%

11%
22%

Net Revenue (US$ million)

6.5%

Net revenue in the quarter totaled US$964.0 million, an increase of

6.5% compared to 4Q13.

Increase of sales prices, coupled with a 4.0% increase in the export

904.9

896.9

1,028.3

volume.

964.0

937.8

Compared with 3Q14, net revenue grew 2.8%, due to an increase of

60.9% in volume sold in the international market.

2.8%

4Q13

1Q14

2Q14

3Q14

4Q14

EBITDA (US$ million)

9.5%

86.3

9.2%

82.9

11.1%

12.1%

113.8

113.2

9.9%

95.7

EBITDA for 4Q14 was US$95.7 million, with a margin of 9.9%

Increase in prices of 10.3% in the domestic market and 8.7% in exports.

The main destinations were Mexico, Japan, Greater China, South Korea

and Canada.
In 2014, net revenue for this business unit was US$3,827.0 million, an

4Q13

1Q14

2Q14

3Q14

4Q14

increase of 8.8% compared to 2013. EBITDA was US$405.6 million,

78.2% higher than the previous year.

EBITDA margin (%)

33

Pilgrims Pride

34

JBS USA Chicken (Pilgrims Pride Corporation - PPC)

Poultry production in the United States, Porto Rico and Mexico
Operational Platform

United States

+39,000 employees

~ 7.5 million birds per day

6.5 million in the US

24 processing facilities

250,000 in Porto Rico

WV

800,000 in Mexico

TN

AR

10 distribution centers
TX
4
1

Located in Mexico

NC

1
1

AL

LA

3
1

VA

KY

05 case ready facilities

SC
1

GA
7
1

FL
1
1

+ de 3,500 contract growers

36 hatcheries

Mexico

28 feed mills

With Tyson acquisition, PPC will have an additional of three

facilities, adding 600,000 birds per day of capacity and 9,000
employees

03 poultry processing facilities

10 distribution centers

Porto Rico

01 processing facility

Net Revenue 2014

US$8.5 billion

EBITDA 2014

US$1,352.2 million
15.8% Margin
35

% NR JBS S.A.

JBS USA Chicken (Pilgrims Pride Corporation - PPC)

7%
44%

16%
11%
22%

Net Revenue (US$ million)

3.1%

2,047.3

2,018.1

2,186.8

2,268.0

2,110.4

Net revenue of US$2,110.4 million in 4Q14, an increase of 3.1%

compared with 4Q13:

Higher sales in the US (2.8%) and Mexico (5.7%).

In 2014, net revenue was US$8,583.4 million, 2.0% higher in relation

to 2013.
-6.9%

4Q13

1Q14

2Q14

3Q14

4Q14

EBITDA (US$ million)

19.2%
15.5%

9.6%

10.2%

196.6

205.2

4Q13

1Q14

338.6

435.4

EBITDA in 4Q14 was US$367.8 million, with a margin of 17,4%:

17.4%

Significant improvement in PPC gross margin, due to a reduction in

367.8

grain prices, combined with better sales mix and efficiencies at

operational level.
Net income in the quarter was US$167.2 million and reflects US$48.0

2Q14

3Q14

4Q14

million adjustment due to the early retirement of the 2018 notes and a
non-cash foreign exchange loss due to the Mexican Peso devaluation.
The 2014 net income reflects an improvement of 17% compared to the
same period in 2013. Pilgrims.

EBITDA margin (%)

36

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.