4Q16 AND 2016

EARNINGS
PRESENTATION

A GLOBAL
FOOD
COMPANY

So Paulo, March 14th, 2017

PLUMROSE ACQUISITION

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PLUMROSE ACQUISITION
JBS agreed to purchase Plumrose USA, an American subsidiary of Danish Crown, for
US$230.0 million

Acquisition Rationale
Full alignment with JBS strategy

Integration with JBS operations and expansion of customer base

Expansion in JBS portfolio of branded, high value added prepared foods

Strong and nationally recognized brands in the US

Annual synergies of US$25.0 million to US$30.0 million

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PLUMROSE OVERVIEW
Overview Assets Footprint

Plumrose offers a variety of prepared foods,

including bacon, lunch meats, ham and cooked VT
1
IA
ribs 2
IN
1

1
Revenue of ~ US$500.0 million
MS
1

1
Production capacity of 350 million pounds per year

05 PFP facilities
+ 1,200 team members
02 distribution centers

Products

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CONSOLIDATED RESULTS
4Q16
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4Q16 CONSOLIDATED HIGHLIGHTS
NET SALES (R$ MILLION) GROSS PROFIT (R$ MILLION)
Gross Margin (%)

47,161
-11.7%
41,631
14.3%
12.1%

5,694 4.3% 5,936

4Q15 4Q16 4Q15 4Q16

| Net revenue of R$41.6 billion in 4Q16, a reduction of 11.7% over 4Q15.

| Increase of 4.3% in gross profit and 2.2 pp in gross margin.

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4Q16 CONSOLIDATED HIGHLIGHTS
EBITDA (R$ MILLION) NET INCOME (LOSS) (R$ MILLION)
EBITDA Margin (%)

6.6% 7.5%

3,132 -0.6% 3,113

694
-275
4Q15 4Q16 4Q15 4Q16

| EBITDA was R$3.1 billion, stable over 4Q15.

| Net income was R$694 million, with an EPS of R$0.26.

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4Q16 CONSOLIDATED HIGHLIGHTS
OPERATIONAL CASH FLOW (R$ MILLION) FREE CASH FLOW EX-ACQUISITIONS (R$ MILLION)

2,909

4,006

1221.8%

303

4Q15 4Q16 4Q15 4Q16

-1,098
| Cash provided by operating activities was R$4.0 billion, an expansion of 1,221.8%.

| Free cash flow generation of R$2.9 billion.

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4Q16 CONSOLIDATED HIGHLIGHTS
| The Company ended the quarter with NET DEBT (R$ MILLION) / LEVERAGE
R$9,355.6 million in cash. Alavancagem

| JBS USA has a US$1,670.0 million fully 4.32x

3.84x 4.10x
available unencumbered line under its 4.16x
3.18x
revolving credit facilities equivalent to 49,178
48,745 48,855
R$5,442.7 million at the exchange rate at 47,039 46,905
the end of the quarter.

| Reduction of R$2.0 billion in net debt for

the quarter over 3Q16.

| Leverage reduced from 4.32x in 3Q16 to

4.16x for 4Q16. 4Q15 1Q16 2Q16 3Q16 4Q16

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DEBT PROFILE 4Q16
BREAKDOWN BY CURRENCY
AND COST BREAKDOWN BY SOURCE BREAKDOWN BY COMPANY
14.02% p.a.
R$
8.5% Commercial
Banks JBS USA JBS S.A.
Capital 59.04% 43.8% 46.8%
US$ Markets
91.5% 40.90%

5.32% p.a. BNDES

Seara
0.06%
9.4%

DEBT PROFILE ST/LT SHORT TERM DEBT BREAKDOWN BY TYPE

Short Term Long Term
Bonds
Others
2%
4Q15 32% 68% Working 7%
Capital
1Q16 33% 67% 16%
2Q16 32% 68%
Trade
3Q16 31% 69% Finance
75%
4Q16 32% 68%

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CONSOLIDATED RESULTS
2016
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2016 CONSOLIDATED HIGHLIGHTS
NET SALES (R$ MILLION) GROSS PROFIT (R$ MILLION)
Gross Margin (%)

4.6% 170,381 13.9%

162,915 12.5%

22,590 -5.7% 21,314

2015 2016 2015 2016

| Increase in net revenue with expansion of R$7.5 billion (+4.6%) over 2015.

| Reduction of 5.7% in gross profit.

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2016 CONSOLIDATED HIGHLIGHTS
EBITDA (R$ MILLION) NET INCOME (R$ MILLION)
EBITDA Margin (%) EPS (R$)

8.2%
6.6% 1.60

13,300 4,640
-15.1%
0.14
11,287 -91.9%

376

2015 2016 2015 2016

| EBITDA was R$11.3 billion, reduction of 15.1% over 2015.

| Net income was R$376.0 million, representing an EPS of R$0.14.

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BUSINESS UNITS
4Q16
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JBS FOODS 4Q16
NET REVENUE (R$ MILLION) EBITDA (R$ MILLION)

5,368.8
-12.8% 17.3%
4,683.5

6.4%
926.4

-67.7%

298.9

4Q15 4Q16 4Q15 4Q16

| Decrease in revenue due to lower volumes and prices in the export
market, in addition to the exchange rate effect.
| Increase in sales and volumes in the domestic market.
| Growth of the customer base, reaching 149,000 at the end of the
quarter.
| Reduction in EBITDA due to high price of grains throughout the year
and exchange rate effect.
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JBS MERCOSUL 4Q16
NET REVENUE (R$ MILLION) EBITDA (R$ MILLION)
12.3%
7,487.6 -3.5% 7,227.6

921.1
-84.4% 2.0%

143.7

4Q15 4Q16 4Q15 4Q16

| Reduction in net revenue due to lower exported volumes and the

exchange rate effect.
| EBITDA was impacted by non-recurring expenses, which totaled
R$263.0 million for the period.
| EBITDA margin excluding non-recurring expenses is 5.6%.

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JBS USA BEEF 4Q16
INCLUDING AUSTRALIA AND CANADA
NET REVENUE (US$ MILLION) EBITDA (US$ MILLION)

5,250.7 1.6% 5,333.0 7.3%

-0.5%
387.6

Swift
(bolinha) e -25.2
Primo 4Q15 4Q16 4Q15 4Q16

| Growth in volumes sold in the domestic market and exports.

| Increase of 7.9% in exports over 4Q15, mainly to Asia.
| Greater availability of cattle contributing to 4Q16 results.
| Australia continues with impact from lower cattle availability, but
operating with positive margins

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JBS USA PORK 4Q16
NET REVENUE (US$ MILLION) EBITDA (US$ MILLION)
1,373.0
13.0% 12.5%
1,087.7
26.2%

171.5
141.3 21.4%

4Q15 4Q16 4Q15 4Q16

| Integration of pork assets acquired in 2015 with synergies captured.
| Increase in the number of animals processed during the period.
| EBITDA positively impacted by increased exports.
| Highlights to exports to Greater China, Japan and South Korea.

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JBS USA CHICKEN (PPC) 4Q16
NET REVENUE (US$ MILLION) EBITDA (US$ MILLION)

1,960.8 -2.7% 1,908.2

9.0%
7.6%

150.0 14.8% 172.2

4Q15 4Q16 4Q15 4Q16

| Positive performance in domestic fresh poultry, especially case-

ready and small birds
| Mexican operations contributed positively to overall results
| Increased exports.

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JBS EUROPE (MOY PARK) 4Q16
NET REVENUE ( MILLION) EBITDA ( MILLION)
9.8%

378.1 -1.5% 372.3 7.9%

36.5
30.0 21.7%

4Q15 4Q16 4Q15 4Q16

| Increased exports.
| Improvement in EBITDA and in EBITDA margin.
| Operating synergies and enhanced focus on cost control.
| Innovation and high value added, convenient products.

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 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. 21