JBS S.A.
A GLOBAL
FOOD
COMPANY
Institutional Presentation
Including 2Q16 Results
Our Values
DETERMINATION
Be relentless. Deliver superior results.
Adopt a sense of urgency. Make
things happen.
SIMPLICITY
Be practical. Focus on what is
important. Adopt a hands-on
approach. Avoid bureaucracy.
AVAILABILITY
Be receptive and open. Always be
prepared and motivated to take on
new challenges.
HUMILITY
SINCERITY
Be direct, truthful and transparent.
Respectfully express opinion. Know
how to say no, but be positive and
offer solutions.
DISCIPLINE
Be punctual. Fulfill commitments.
Deliver results. Do not make excuses.
OWNERSHIP
Be committed to results. Focus on
details. Take responsibility.
Listen. Be helpful and thoughtful. Act
with respect. Prioritize the team over
yourself. Value the opinion of others.
2
JBS AT A GLANCE
Net Revenue of R$178
billion LTM 2Q16
Second largest global food company¹
Global and diversified platform
Value added product portfolio with brands
High performance team with more than
235 thousand employees
Focus on operational
Source 1: Bloomberg
excellence
3
GLOBAL LEADERSHIP TEAM
Wesley Batista
Global CEO
Russ Colaco
Global CFO
Enéas Pestana
CEO of
JBS
South America
André
Nogueira
CEO of
JBS USA
Gilberto
Tomazoni
Global
Operations
President
Vincent Trius
Global
President of
New Projects
Tarek Farahat
Global
Marketing and
Innovation
President
4
A GLOBAL COMPANY
An Exclusive Global Production and Sales Platform
3%
CANADA
RUSSIA
EUROPE
1%
6%
50%
12%
USA
MEXICO
ASIA
AFRICA &
MIDDLE EAST
4%
4%
South Am/
OTHERS
BRAZIL
14%
2%
As % of Total Revenue¹
Production footprint
Note 1. Revenues by region include domestic sales and imports.
OCEANIA
4%
5
EVOLUTION
From a Brazilian beef company in 2007 to a Global food company
CARGILL PORK
Net Revenue 2015:
IPO JBS SA
19,000
EMPLOYEES
2006
Net Revenue: R$3.9 bi
Net Revenue: R$14.1 bi
2007
BERTIN
R$163 bi
2009
2008
Net Revenue: R$30.3 bi
2013
2010
EXPANSION IN USA AND AUSTRALIA
Net Revenue: R$54.7 bi
2015
2014
ACQUISITIONS: TYSON IN BRAZIL
AND MEXICO
230,000
EMPLOYEES
6
STRATEGY
Global and Diversified Production and Distribution Platform progressing towards value added
products with brands
\\\\\\\\\\\\
Branding
Value added products
Sales and distribution platform
Production platform
+350,000 customers and
sales to +150 countries
+300 production units in
+15 countries
7
CONSOLIDATED EXPORTS
Exports Breakdown in LTM 2Q15 and LTM 2Q16
Greater China¹
19.34%
Others
9.97%
Canada
2.62%
Russia
3.69%
LTM 2Q16
US$14,67199
million
Mexico
4.62%
Greater China¹
17.95%
Others
9.32%
Canada
2.49%
Mexico
4.56%
Africa & Middle East
12.89%
LTM 2Q15
US$15,870.9
million
E.U.
6.13%
Russia
6.17%
South Korea
6.18%
USA
10.84%
Note 1: Considers China & Hong Kong
South Korea
6.49%
Africa & Middle
East
13.76%
South America
11.66%
E.U.
7.55%
USA
9.32%
Japan
10.97%
Japan
11.75%
South America
11.73%
8
BUSINESS UNITS
2Q16
9
SEARA
Leading producer of prepared foods (PFPs) and fresh poultry and pork products
Operational Platform
Brazil
+66,000 employees
5,7 million birds per day
CE
 Production units located in the south,
1
southeast and mid-west regions
PE
BA
MS
and mid-west regions
1
1
1
1
1
1
7
PR
RS
 Production units located in the south,
1
1
1
1
MG
SP
4
southeast, northeast and mid-west
regions
SC
6
3
3
2
20 PFP units
3
1
2
116.5 thousand tons per month
08 slaughterhouses and deboning units
1
DF
1
1
 Production units located in the south
33 slaughterhouses and deboning units
1
MT
20,800 hogs per day
1
8
3
RJ
1
3
2
1
13 distribution centers
5
13 distribution centers
 In 11 states
Main Brands
Net Revenue LTM 2Q16
Notes. Industrial Complex: location with one or more units of production;
R$19.3 billion
EBITDA LTM 2Q16
R$3.0 billion
15.2% Margin
10
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
40,490 bovines per day
1
 92% in Brazil, 3% in Argentina, 3% in
Paraguay and 2% in Uruguay
82,000 hides per day
AC
RO
1
4
MA
1
2
1
1
1
1
MT
4
11
2
3
3
1
7
 01 facility in Argentina, China,
Germany, Mexico, Uruguay and
Vietnam
2
1
2
MG
1
PR
3
1
1
1
1
16 tanneries
RJ
1
1
5
33 distribution centers
SP
SC
RS
34 distribution centers
and 01 in Argentina
03 feedlots
MS
 02 facilities in Italy
 10 central and 23 regional in Brazil
40 beef processing facilities
PE
2
1
4 GO
3
8
2
1
3
1
BA
1
1
1
 16 facilities in Brazil
CE
Main Brands
01 beef processing facilities
02 case ready facilities
01 distribution center
01 tannery
Argentina
Leadership in beef production
08 related businesses
 Biodiesel
 Can making
Paraguay
JBS is the leader in beef processing and has around 25% of market share in
exports of Paraguay
 Collagen
Uruguay
 JBS Carriers / TRP
Great access to export markets
 Trading
 Hygiene and Clean
 Casings
 Recycling
Net Revenue LTM 2Q16 R$28.8 billion
02 beef processing facility
01 beef processing
01 tannery
EBITDA LTM 2Q16
R$2.8 billion
9.6% Margin
11
JBS USA BEEF
Beef production in the United States, Canada and Australia
Operational Platform
United States
+35,000 employees
WI
~41,900 bovines per day
1
ID
1
1
 ~27,455 in the US
1
NE
UT
 ~4,200 in Canada
1
1
 ~10.250 in Australia
CO
2
4
1
KS
11 feedlots
1
OK
AZ
09 beef processing facilities
PA
1
1
1
1
1
12,900 hides per day
MI
01 tannery
1
1
TX
 5,000 in the US
3
06 carriers units
1
 7,900 in Australia
2
Main Brands
17 feedlots (bovine)
Australia and New Zealand
 11 in the US/ Capacity of 1.0 million
1
 01 in Canada / Capacity of 70,000
7
2
1
bovines
1
4
 05 in Australia / Capacity of 150,000
2
bovines
08 distribution centers
4
1
bovines
2
1
1
1
Leadership in beef exports
Leadership in the processing of lamb
(23,100 lamb per day)
#1st in the Food Industry Ranking¹
Note 1. Source: Food&Drink Business Magazine
 09 bovine, 05 lamb and 01 hogs
05 feedlots
01 tannery
08 distribution centers
08 case ready facilities
 07 in Australia and 01 in New Zealand
2
Canada
Growth in revenues from 2014 to 2015
 07 DCs in Australia, 01 in New
Zealand and 06 carriers units in the
US
15 processing facilities
Net Revenue LTM 2Q16
US$20.9 billion
01 beef processing facility
01 feedlot (bovine)
01 trading
EBITDA LTM 2Q16
-US$16.2 million
-0.1% Margin
12
JBS USA PORK
Pork production in the United States
Operational Platform
United States
+11,000 employees
~ 90,000 hogs per day
MN
1
 100% in the US
IA
2
1
IL
03 case ready facilities
05 hog processing units
1
MO
 Convenience products
2
CA
OK
2
1
KY
1
NC
1
03 consumer ready facilities
AR
1
1
05 feed mills
TX
Products
02 genetic units
1
Swift Premium
Dry Rubbed Ribs
Swift Premium
Boneless Backrib
Swift Premium
Rubbed Loin Filet
Swift Premium
Boneless Pork Chops
Main Brands
Net Revenue LTM 2Q16
US$4.5 billion
EBITDA LTM 2Q16
US$428.7 million
9.5% Margin
13
JBS USA CHICKEN (PPC)
Poultry production in the United States, Porto Rico and Mexico
Operational Platform
United States
+40,000 employees
~ 7.3 million birds per day
 6.2 million in the US
23 processing facilities
WV
 66,000 in Porto Rico
 1,1 million in Mexico
1
KY
TN
AR
1
TX
4
3
LA
VA
04 case ready facilities
1
NC
1
AL
22 distribution centers
1
1
2
SC
1
GA
6
1
 21 located in Mexico
 1 located in Porto Rico
2
1
Main Brands
FL
1
+ 3,500 contract growers
 42 hatcheries
Mexico
 36 feed mills
With Tyson acquisition, PPC now have an additional of three
facilities, adding 600,000 birds per day of capacity and 5,400
employees
6
Porto Rico
06 poultry processing facilities
21 distribution centers
01 processing facility
01 distribution center
1
Net Revenue LTM 2Q16
US$8.1 billion
EBITDA LTM 2Q16
US$940.5 million
11.7% Margin
14
JBS EUROPE
Poultry and Convenience Products in Europe
Operational Platform
Europe
+13,000 employees
~ 1.0 million birds per day
In Natura
 100% in UK
Convenience and Value Added UK
450,000 tons of products
per year
Convenience and Value Added Europe
Poultry Breeding Grounds
Rigamonti
 Presence in UK, France, Netherlands
and Ireland
+ 750 contract growers
Main Brands
15
CONSOLIDATED RESULTS
2Q16
16
2Q16 CONSOLIDATED HIGHLIGHTS
| Expansion in net revenue of 12.3% compared to 2Q15.
| Reduction in gross profit over 2Q15.
17
2Q16 CONSOLIDATED HIGHLIGHTS
| Reduction in EBITDA impacted by an increase in grain costs and exchange rate variation in
Brazil, in addition to Beef operations in North America, which are in a transitional phase.
| Expressive increase in Net Income.
18
2Q16 CONSOLIDATED HIGHLIGHTS
| Operational cash flow negative R$558 million and free cash flow negative R$1.6 billion.
| The Company unwound its hedging position related to FX variation in the Parent
Company.
19
2Q16 CONSOLIDATED HIGHLIGHTS
| Leverage was impacted by the payment of R$1,101.8 million in dividends to JBS shareholders,
R$570.1 million in dividends to PPC’s minority and the payment of R$2,656.3 million related to
derivatives position.
20
DEBT PROFILE 2Q16
21
PERFORMANCE BY BUSINESS UNIT
2Q16
22
Seara (R$)
Net Revenue (billion)
4.5
5.0
JBS Mercosul (R$)
EBITDA (million) and % EBITDA
5.4
4.3
4.6
17.7% 20.7% 17.3%
1,040.0
789.4
2Q15 3Q15 4Q15 1Q16 2Q16
13.5%
8.3%
Net Revenue (billion)
7.2
12.3%
7.5
7.1
5.9
5.8
5.3
7.0
4.6
2Q15 3Q15 4Q15 1Q16 2Q16
2Q15 3Q15 4Q15 1Q16 2Q16
Net Revenue (billion)
1.1
0.5%
-0.5%
0.8
1.3
EBITDA (million) and % EBITDA
2.0
2.0
2Q15 3Q15 4Q15 1Q16 2Q16
13.0%
13.9%
7.6% 11.9%
274.3
233.5 282.7
150.0
8.1% 10.0%
0.8
64.6 48.4
2Q15 3Q15 4Q15 1Q16 2Q16
Net Revenue (million)
360.3
102.1
136.9
2Q15 3Q15 4Q15 1Q16 2Q16
2Q15 3Q15 4Q15 1Q16 2Q16
2Q15
EBITDA (million) and % EBITDA
8.7%
9.2%
31.2
33.5
2Q15
2Q16
364.7
425.8
2Q15 3Q15 4Q15 1Q16 2Q16
13.0%
JBS Europe - Moy Park (£ - pounds sterling)
EBITDA (million) and % EBITDA
2.0
8.1% 6.2%
141.3
JBS USA Chicken – PPC (US$)
2.1
457.2
2Q15 3Q15 4Q15 1Q16 2Q16
1.4
-25.2 -214.8 27.0
2.1
761.4
JBS USA Pork (US$)
3.8% 3.4%
20.7%
6.3%
376.8
228.5 196.8
Net Revenue (billion)
10.9%
5.2%
640.8
382.0
-4.6%
2Q15 3Q15 4Q15 1Q16 2Q16
9.0%
921.1
579.5
EBITDA (million) and % EBITDA
5.2
7.2
926.4
JBS USA Beef (US$)
Net Revenue (billion)
EBITDA (million) and % EBITDA
2Q16
23
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.
24