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JBS S.A.

Institutional Presentation
Including 2Q18 Results

1
About
JBS
Over 230 thousand direct
and 700 thousand indirect employees.
JBS has been a public company
Around 350 thousand since 2007 and its shares are traded on the New
Market of the São Paulo Stock Exchange (B3).
Customers in 150 countries.

Number in global beef production;


in global chicken production;
US$ 51billion (R$169Bn)

One in global leather processing.


in net revenue (LTM 2Q18).

Number in global pork production;

Two in global lamb production.

2
A Unique
Global Platform

3% 5%
CANADA
EUROPE

USA
53%
15%
MEXICO
AFRICA AND ASIA
5% THE MIDDLE
EAST
3%

BRAZIL
12%

SOUTH 3%
AMERICA 1%
AUSTRALIA
AND NEW
ZEALAND
% of Total Revenues
GLOBAL
PLATFORM Beef
Lamb
Pork
Present
15 countries
Leather
Poultry
in over
with over 400 production units
and offices.

3
Global Management
Structure
Food Quality
and Safety

José Batista Center of


Sobrinho Excellence and
Chairman and Innovation
Global CEO of JBS
Global
Sourcing

Gilberto Tomazoni
Global Chief
Operating Officer
Wesley Batista Filho
President of Operations
South America
André Nogueira
CEO of JBS USA

Joanita Karoleski Renato Costa Nelson Dalcanale Roberto Motta


President of President of President of President of
Seara JBS Meats JBS New JBS Leather
Business

Bill Lovette Al Byers Marty Dooley Tim Schellpeper Brent Eastwood David Colwel Tom Lopez
Global CEO President of President of President of President of President of President of
of PPC JBS USA Beef JBS USA Pork JBS USA Fed Beef JBS Australia JBS Canada Plumrose USA
Regional

4
Strategy
Global and Diversified Production and
Distribution Platform evolving towards
value added products with brands

Branding

Value added
products

Sales and distribution platform


+350,000 customers and
sales to +150 countries

Production platform
+400 production units in
+15 countries

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Consolidated
Exports

Greater China¹ 22.8%

Japan 14.1%
3.5%
Africa & Middle East 11.1% 22.8%
6.3%
USA 10.3% 14.1%
10.3%
South Korea 9.2% 9.2%
Mexico 6.5% 6.5%
E.U. 6.3%
11.1%
Canada 3.5%

South America 3.0% 3.0%

Others 13.2%

Greater China, Africa & Middle


East and Japan corresponded to
2Q17 2Q18
~48% US$3,682.1mn US$3,223.9mn
of the total of exports

Note 1: Considers China and Hong Kong 6


2Q18
Business Units
7
Seara
Production of prepared foods and Brazil
fresh poultry and pork products in
Brazil
CE

PE

Operational Platform BA
MT
~70,500 team members DF
4.9 million birds per day

29 poultry processing facilities MS MG


 Production units located in the
south, southeast and mid-west
regions
08 hogs processing facilities RJ
SP
23,970 hogs per day 21 PFP units PR

SC
14 distribution centers
 Production units located in the RS
south and mid-west regions

115,000 tons per month

Main Brands
 Production units located in the
south, southeast, northeast and
mid-west regions

R$1.6 Bn
Net Revenue LTM 2Q18 R$17.1 Bn EBITDA LTM 2Q18
9.1% Margin
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JBS Brazil Brazil
Beef production in Brazil, in addition to
leather and other Related Business
PA CE

Operational Platform
AC TO PE
RO
BA
34,240 bovines per day
MT
 100% in Brazil GO
~50,000 team members MG
70,434 hides per day

 18 facilities in Brazil 35 beef processing facilities MS


RJ
 01 facility in Mexico, Vietnam
and Italy 03 feedlots PR SP

 04 facilities in Uruguay 18 tanneries¹


 02 facilities in Argentina
RS
21 distribution centers
21 distribution centers
07 PFP units
 10 central and 11 regional

08 related business Main Brands


 Biodiesel
 Can making
 Collagen
 JBS Carriers / TRP
 Trading
 Hygiene and Clean
Net Revenue LTM 2Q18 R$22.8 Bn R$30.0 million
 Casings EBITDA LTM 2Q18
 Recycling 0.1% Margin
Note 1: Does not consider facilities outside Brazil 9
JBS USA Beef United States
Beef production in the United
States, Canada and Australia WI

MI
NE
UT PA
~35,000 team members CO

Operational Platform
19 beef processing facilities AZ
42,533 bovines per day
06 feedlots GA
TX
 28,130 in the US
03 tanneries
 4,200 in Canada Australia and NZ
 10,203 in Australia 08 carrier units

08 case ready facilities Canada


13,850 hides per day

 5,950 in the US 08 distribution centers


 7,900 in Australia
03 lamb processing facilities
06 feedlots
01 hogs processing facility (Primo)
 06 in Australia / Capacity of
162,000 bovines Main Brands

08 distribution centers

 07 DCs in Australia
 01 DC in New Zealand
 08 carriers units in the US
US$1.7 billion
Net Revenue LTM 2Q18 US$21.9 Bn EBITDA LTM2Q18
7.7% Margin
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JBS USA Pork
Pork and value added United States
production in the United States
MN

VT

Operational Platform IA

IL IN
92,000 hogs per day

 100% in the US ~11,000 team members CA KY


NC
OK
AR

05 hogs processing facilities MS


07 PFP facilities
07 PFP facilities
 Examples of products
02 genetic units

02 distribution centers

Main Brands

US$724 million
Net Revenue LTM 2Q18 US$6.2 Bn EBITDA LTM 2Q18
11.7% Margin

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Pilgrim’s Pride
Poultry production in the United United States & Puerto Rico
States, Mexico, Puerto Rico and
MN
Europe WI

WA
VA
Operational Platform KY
Europe
AR TN NC
AL GASC
8.7 million birds per day TX
LA

 25 facilities / 6.6 million FL


birds in the US

 01 facility / 66,000 birds in Porto


~60,000 team members
Rico
 06 facilities / 1,2 million birds in 36 poultry processing facilities
Mexico
Mexico
19 PFP facilities
 04 facilities / 871,000 birds in UK
22 distribution centers
40,800 tons of products
per month
 04 facilities in the US
 02 facilities in Mexico
 06 facilities in the UK
Main Brands
 03 facilities in France
 03 facilities in Italy
 01 facility in Netherlands

22 distribution centers

 21 located in Mexico
 01 located in Porto Rico
Net Revenue LTM 2Q18¹ US$11.1 Bn EBITDA LTM 2Q18¹
US$1.3 billion
11.3% Margin
Note 1: includes Moy Park results in all quarters. 12
Evolution by
Business Units

Seara (R$)¹ JBS Brazil (R$)


Net Revenue (billion) EBITDA (million) and % Net Revenue (billion) EBITDA (million) and %
6.2
8.2% 11.1% 10.9% 8.3% 5.5%
5.9 5.9 5.8
4.6 4.5 5.1
4.3
4.0 4.1 6.2%
4.2% 1.4% -1.6%
-5.2%
508.5 488.4
356.1 330.2
226.7 261.0 358.6
72.5
-308.6 -92.5

2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18

JBS USA Beef (US$) JBS USA Pork (US$)


Net Revenue (billion) EBITDA (million) and % Net Revenue (billion) EBITDA (million) and %

5.5 5.5 5.7 5.6 5.9% 7.3% 7.0% 6.1%


10.2% 11.7% 15.1% 11.7% 12.1%
7.2%
5.1

1.7 1.6
1.5 1.5 1.4
570.1
324.2 405.1 395.9 308.2 255.8
177.8 186.9 177.7
103.4

2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18

Pilgrim’s Pride² (US$)


Net Revenue (billion) EBITDA (million) and %
16.3% 16.6%
2.8 2.8 8.8% 9.9% 10.0%
2.8 2.7 2.7

448.9 463.6
241.0 271.8 282.5

2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18

¹ Adjusted EBITDA excluding the R$112.9 million impact from the truckers strike in Brazil at Seara.
² Adjusted EBITDA in accordance with PPC reported earnings release. 13
2Q18
Consolidated Results
14
2Q18 HIGHLIGHTS

Net revenue was R$45.2bn, up 8.4%

Consolidated adjusted EBITDA¹ increased by 12.8% to R$4.2bn

Adjusted net income² was R$3.0bn and reported


accounting loss was R$911.1 mi

Free cash flow was R$1.9bn

Reduction in net debt of US$2.1bn compared with 2Q17

Leverage in US$ reduced to 2.98x, compared to 4.07x in


2Q17

Leverage in R$ reduced to 3.47x, compared to 4.16x in


2Q17

¹ Adjusted EBITDA excluding the R$112.9 million impact from the truckers strike in Brazil at Seara
² Adjusted net income excluding the non-cash effect of FX variation 15
2Q18 Consolidated
Results

Net Revenue (R$ million) Gross Profit (R$ million)


Gross margin (%)

15.5%
14.8%
45,175.6
8.4% 6,987.5
6,159.1
41,674.8
13.5%

2Q17 2Q18 2Q17 2Q18

Net revenue was Gross profit was

R$45.2Bn
Increase of 8.4% compared with 2Q17
R$7.0Bn
Increase in gross margin from 14.8% in 2Q17 to
15.5% in 2Q18

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2Q18 Consolidated
Results

Adjusted EBITDA¹ (R$ million) Adjusted Net Income (R$ million)


EBITDA margin (%)

9.0% 9.4% 2Q17 2Q18 2Q18²

2,998.3

3,757.8 4,237.6
12.8%
309.8

2Q17 2Q18
-911.1
Adjusted EBITDA was Adjusted net income² was

R$4.2Bn R$3.0Bn
Increase in EBITDA margin from 9.0% in 2Q17 to Reported accounting loss was R$911.1 Mn
9.4% in 2Q18

¹ Adjusted EBITDA excluding the R$112.9 million impact from the truckers strike in Brazil at Seara
² Adjusted net income excluding the non-cash effect of FX variation 17
2Q18 Consolidated
Results

Operating Cash Flow (R$ million) Free Cash Flow (R$ million)

2Q17 2Q18
Geração de Caixa Operacional 2,493.1 1,929.6
177.2%
899.5

2Q17 2Q18 -432.3

Cash flow from operational activities was Free cash flow was

R$2.5Bn R$1.9Bn

18
2Q18 Consolidated
Results

Net debt (million)/Leverage

Net debt decreased by

US$2.1 billion 4.16 Net Debt (R$)


Net Debt (US$)
in relation to 2Q17 4.07 Leverage (R$)
Leverage (US$)
3.45
Leverage in US$ reduced to 3.47

2.98x
3.38
3.42 3.24

3.26
from 4.07x in 2Q17 3.13 2.98

50.4 50.5
Leverage in R$ reduced to 45.5 45.3 45.5

3.47x 15.2 14.4 13.7 13.7 13.1


from 4.16x in 2Q17

2Q17 3Q17 4Q17 1Q18 2Q18

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2Q18 Consolidated
Results

Debt profile ST/LT Source breakdown


 Cash at the end of 2Q18 was
R$13.1Bn ST
7.0%
Commercial Banks 43%

In addition, JBS USA has US$1,856.5 mln


(R$7,158.3 mln)¹ fully available
unencumbered line under revolving
credit facilities
LT
 Total liquidity at the end of 2Q18 was 93.0%

R$20.3Bn
Five times higher than short-term debt Capital Markets
57%

Entity breakdown Currency and cost breakdown


Seara JBS USA  9.06% p.a.
7.0% 59.6%
R$ 4.0%

JBS S.A.
33.4% US$ 96.0%
 5.67% p.a.

¹ Converted using the prevailing FX rate at the end of the period


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JBS Priorities

Continuous focus on operational efficiency

Organic growth

Investments in innovation and quality

Focus on deleveraging

Wo r l d - c l a s s G l o b a l C o m p l i a n c e P r o g r a m

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Other
Relevant Topics
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Compliance

JBS has implemented a number of initiatives to strengthen its compliance culture, such as the
Always Do It Right program, where each employee serves as a multiplier of best practices.

JBS received an 8.1 grade on the Transparency


International ranking – the average grade in Brazil is 5.7.

The company is a signatory of the Business Integrity and Anticorruption


Compact from the Ethos Institute, and has implemented a Global
Code of Ethics & Integrity.

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Sustainability

JBS maintains several sustainability initiatives that


positively influence the entire value chain, from
sourcing raw materials to product packaging disposal.

A satellite monitoring system maintained by JBS covers around 59 million hectares of the
Amazon region, including 437 municipalities, aiming environmental preservation
(deforestation) and indigenous land criteria and taking steps to combat labor analogous to slavery.

JBS operates in the circular economy (take, make and dispose) and uses its
raw material to produce leather and collagen. It also employs structured
programs to transform waste into biodiesel and fertilizer, reducing water
use and greenhouse gas emissions.

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Animal
Well-Being

In 2017, JBS invested R$ 14.7 million in


Animal Well-Being improvements.

JBS Supply Chain Seal assesses all animal quality and well-being criteria, certifying
guaranteed beef sourcing. The protocol is certified by the SBC, the Brazilian Certification
Service.

In 2017, JBS was ranked one of the best companies in the world in Animal
Well-Being practices by the BBFAW.

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Quality

JBS is ISO 9001 certified and the Brazilian company with the largest number of
facilities certified by the BRC (British Retail Consortium).

The company’s rigorous quality control procedures carry out over 120 international
audits every year in Brazil alone.

Worldwide, over 70 thousand employees have undergone mandatory


food safety training.

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OUR MISSION
“To be the best in all that we do, completely focused on our
business, ensuring the best products and services to our
customers, a relationship of trust with our suppliers,
profitability for our shareholders and the opportunity of a
better future for all of our team members.”
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