JBS Day Presentation

5/27/2018 JBS Day Presentation

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JBS DAY New York4Q13 and 2013 Results Presentation

March 25th, 2014


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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 ofJBSmanagement concerning the future of the business and its continued access to capitalto 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 factorsand risks disclosed in JBSfiled disclosure documents and are, therefore, subject to changewithout prior notice.

Disclaimer


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Management Here Today

Wesley BatistaCEO of JBS Global

Andr NogueiraCEO of JBS USA

Denilson MolinaCFO of JBS USA

Bill RuppPresident and COO of Beef USA

Bill LovetteCEO of Pilgrims Pride

Martin DooleyPresident and COO of Pork USA

Miguel GularteCEO of JBS Mercosul

Gilberto TomazoniCEO of JBS Foods

Eliseo FernandezChief Control Officer

Eduardo MacielFinance Director of JBS S.A.

Jerry OCallaghan Investor Relations Officer


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JBS at a Glance

Leadership position in the global food industry Estimated revenues of around US$50 billion in 2014 Presence in 5 continents and sales to more than 150 countries Production facilities in the low cost geographies

Founded in the 1950s in Midwest of Brazil IPO in 2007

Source: Company

More than 185,000 employees

Productioncapacity 12 million birds/day

Chicken

70 thousand hogs/day

Pork

25 thousand lambs/day

Lamb

100 thousand hides/day

Leather

100 thousand heads/day

Beef


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JBS 4Q13 Results Highlights

Net revenue of R$27.2 billion, an increase of R$5.4 billion, or 24.6% higher than4Q12, of which 54% came from organic growth.

Consolidated EBITDA was R$1,873.5 million, an increase of 60.0% over the sameperiod of last year. EBITDA margin for the quarter was 6.9%.

Annualizing 4Q13 EBITDA leverage ended the period at 3.17x.

JBS ended the year with leverage of 3.70x, considering all debt assumed with Searaacquisition and only one quarter of EBITDA.


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JBS 2013 Results Highlights

JBS net revenue increased 22.7% compared to prior year and reached R$92.9billion.

EBITDA totaled R$ 6.1 billion in 2013, 39.0% higher than 2012. EBITDA margin was6.6%, an increase of 80b.p. over the previous year.

JBS ended the year with Adjusted Net Income of R$1,194.0 and recorded R$926.9million of net income, 28.9% higher than 2012 and equivalent to R$323.32 perthousand shares.

JBS generated net cash from operating activities of R$2,541.0 million, with positivefree cash flow of R$635.1 million in 2013.


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Market Analysis


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Net intra-regional trade, million tonnes

Worlds Food* Surpluses and Deficits

* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.Source: The Economist

1965

1990

1970

1995

1975

2000

1980

2005

1985

2010

150

100

50

0

50

100

150

NorthAmerica

SouthAmerica

Australia

Eastern Europeand former

Soviet Union

Western

Europe Asia

Middle East

& Africa

Central

America


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Global Protein TradeLargest Exporters

JBS is present in the main exporter markets

Source: USDA 2013*Buffaloes / **Excluding Brazilian exports

Canada 3.4%

New Zealand 5.8%

Mercosul** 9.2%

Others 16.6%

USA 11.9%

Brazil 19.2%

India* 17.6%

Australia 16.3%

Chicken Exports

Beef Exports

Pork Exports

Turkey 3.5%

Thailand 5.2%

China 4.0%

E.U. 10.5%

Others 10.0%

Brazil 34.5%

USA 32.3%

Chile 2.6%

Brazil 8.5%

China 3.5%

Canada 17.6%

Others 4.1%

USA 32.5%

E.U. 31.2%


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67.595.2

122.5

90.8

105.7

126.7

11.2

12.8

15.6

58.6

64.6

73.6

Poultry Pork Sheep Beef

Meat Consumption Growth Forecast 2011-2020

Meat Consumption Forecast(Million tons)

Expected increase in meat demand by country

groups between 2010 - 2020

Emerging

Developed

Source: FAO - OECD

19%

81%

2020

228.1

Ave 2008-10

278.2

2001

338.3


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0

50

100

150

200

250

300

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013E 2015E 2017E 2019E 2021E

Global Protein Consumption Growth by Species

Strong Global Industry Fundamentals

Source: USDA FAS and FAO

(MT in mm)


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Average global per capita meat consumption, from 1960-2030

0 5 10 15 20 25 30 35 40 45 50

2030

1997-99

1964-66

Chicken Suine Ovine Bovine

Consumption (kg/person/year)

Source: FAO


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Consolidated Results


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1

3.43 3.403.28

4.033.70

0

500

1.000

1.500

2.000

2.500

3.000

4Q12 1Q13 2Q13 3Q13 4Q13

21,9

27,2

4Q12 4Q13

1.170,9

1.873,5

5,46,9

4Q12 4Q13

60.0%

3.17

Leverage EBITDA (R$ million)

Highlights

Annualizing 4Q13 EBITDA leverage

ended the period at 3.17x.

JBS ended the year with leverage

of 3.70x, considering all debt assumed

with Seara acquisition and only one

quarter of EBITDA.

Consolidated EBITDA wasR$1,873.5 million, an increase of60.0% over the same period of lastyear.

EBITDA margin for the quarter was6.9%.

Net revenue of R$27.2 billion,an increase of R$5.4 billion, or24.6% higher than 4Q12, of which54% came from organic growth.

24.6%

4Q13 Consolidated Results

[ Net Revenue - R$ billion] [ EBITDA - R$ million] [ LeverageNet Debt/EBITDA]

EBITDA Margin

Leverage considering annualized 4Q13 EBITDA

Source: Company


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1

[ EBITDA - R$ billion]

19,5 21,924,2 27,2

75,7

92,9

1Q13 2Q13 3Q13 4Q13 2012 2013

EBITDA

EBITDA margin (%)

EBITDA totaled R$ 6.1 billion in

2013, 39.0% higher than 2012.

EBITDA margin was 6.6%, an

increase of 80b.p. over the previous

year.

Highlights

JBS net revenue increased 22.7%

compared to prior year and reached

R$92.9 billion.

In 2013,net revenue increased more

than 10% in all quarters.

JBS Mercosul recorded net revenue of R$25,820.5 million, up 43.3% when compared to 2012.

The chicken unit in the USA (PPC)had the best year in its history in 2013 and posted a net revenue of US$8,411.1 million.

Acquisition of Seara and union with JBS Chicken Brazil forming JBS Foods.

JBS ended the year with R$926.9

million of net income, 28.9% higher

than 2012 and equivalent to R$323.32

per thousand shares.

227,9

338,5

219,8140,7

718,9

926,9

1Q13 2Q13 3Q13 4Q13 2012 2013

22.7%

[ Net Revenue - R$ billion]

0,91,7 1,7 1,9

4,4

6,14,5

7,6 7,1 6,95,8

6,6

1Q13 2Q13 3Q13 4Q13 2012 2013

39.0%

[Net Income - R$ million]

28.9%

2013 Consolidated Results


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1

Adjusted Net Income

Adjusted net income in 2013 was R$1,194.0 million, disregarding the portion of deferred

income tax liabilities, which refers to the goodwill held by the Parent company. Net income forthe year was R$926.9 million, R$323.32 per thousand shares.

Operational Net Cash

In 2013 the company generated net cash from operating activities of R$2,541.0. In 4Q13 net

cash from operating activities was R$357.8 million .

Capital Expenditure

In 2013 the total capital expenditure (CAPEX) was R$1,737.3 million, while in 4Q13 the

expenditure was R$585.2 million. The main investments in 4Q13 in North America weredestined to the units of Brooks in Alberta, in Canada, and in Mercosul the main investments

were concentrated on improving productivity and expanding operations in the beef business in

Brazil and JBS Foods.

2013 Consolidated Results

Source: Company

Free Cash Generation

In 2013 company generated free cash flow of R$635.1 million. In 4Q13 negative free cash flow

of R$230.4 million due to an expressive expansion of Mercosul exports in the period.


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1

Greater China*21,2%

Mexico14,6%

Africa and Middle East

9,8%Japan8,0%

E.U.6,1%

Russia5,7%

South Korea4,9%

Venezuela4,4%

Canada3,6%

Chile2,7%

Other19,2%

2013US$11,760.6

million

Increase of 19.6% in 2013

exports compared to 2012

Mexico14,6%

Greater China*14,0%

Japan11,0%

Africa and MiddleEast

10,3%Russia7,4%

E.U.6,2%

South Korea5,4%

Canada5,4%

Venezuela3,3%

Chile3,1%

Other19,4%

2012US$9,830.2

million

JBS Consolidated Exports Distribution in 2013 and 2012

*Considers China and Hong Kong


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1

Debt Profile

I d bt d


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1

3,43 3,40 3,28

4,033,70

0

500

1.000

1.500

2.000

2.500

3.000

4Q12 1Q13 2Q13 3Q13 4Q13

USD76%

R$24%

Annualizing 4Q13 EBITDA, that includes Seara results,

leverage ended the period at 3.17x.

LTM,Net debt/EBITDA was 3.70x in 4Q13, compared

to 4.03x in 3Q13, even after the integration of a relevantacquisition and strong foreign exchange variation.

The reduction of net debt/EBITDA reflects the

management commitment in improving financial

efficiencies, consequently, reducing its leverage.

ParentCompany

63%

Subsidaries37%

10.8% per annum

6.0% per annum

3.17

.Leverage EBITDA (R$ million)

Leverage considering annualized 4Q13 EBITDA

Indebtedness

Leverage Breakdown by Company

Breakdown by Currency & Average Cost

D bt P fil


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2

29%

35%

35%

28%

30%

71%

65%

65%

72%

70%

4Q13

3Q13

2Q13

1Q13

4Q12

Short term Long term

JBS ended the year with R$9,013.1 million in cash,

corresponding to 96% of short-term debt,

approximately.

Considering credit lines of immediate liquidity of

US$1.55 billion from JBS USA, availabilities of the

Company represents more than 100% of short-term

debt.

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

total debt declined from 35% in 3Q13 to 29% in4Q13.

418

3.000

4.558

1.084

5.030

32

5.073

2.651

86

1.816

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Debt Profile

Net Debt maturity (R$ million)

Source: JBS


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2

Stock Performance

Stock Performance


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2

During 2013, JBSS3 substantially outperformed the

Ibovespa Index, increasing 47%, while the indexdecreased 15%.

The Average Daily Traded Financial Volume in the year was

R$34.3 million, an increase of 34.1% compared to 2012.

As of December,31 2013 JBSmarket cap was R$25.8 billion.

During 2013, PPC stocks substantially outperformed theS&P 500 Index, increasing 129%, while the index increased31%.

As of December,31 2013 PPCs market cap was US$4.7

billion.

60%

80%

100%

120%

140%

160%

JBSS3 IBOV

60%

100%

140%

180%

220%

260%

300%

PPC SPX Index

Source: Bloomberg, 100% = 12/31/2013

Stock Performance

JBS Stock Performance PPC Stock Performance (Controlled by JBS)


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2

JBS Mercosul

JBS Mercosul


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2

JBS Mercosul

Net Revenue (R$ billion)

EBITDA (R$ billion)

EBITDA Margin (%)

Net revenue was R$9,203.7 million in the quarter, up 74.6%

over 4Q12.

Incorporation of JBS Foods results in 4Q13;

Improvement in the performance of the beef business in

Brazil;

Increase in the number of processed cattle year over year;

Exports 81.8% higher when compared to 4Q12.

EBITDA totaled R$ 919.7 with EBITDA margin of 10.0%

Increase in direct distribution and customer base;

Higher demand in the international market in the beef

segment.

5,3 5,0 5,4 6,29,2

18,0

25,8

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

74,6%

0,7 0,60,5 0,7 0,9

2,5 2,7

12,6% 11,3% 10,0% 11,1% 10,0% 13,7% 10,5%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0 ,0 %

2 ,0 %

4 ,0 %

6 ,0 %

8 ,0 %

10,0%

12,0%

14,0%

16,0%

0,0

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

JBS Mercosul


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2

Geographic Footprint and Capacity

Operation platform

90,000 hides per day

~55,000 head per day

36 Distribution Centers

09 Related Businesses

ARGENTINA

BRAZIL

URUGUAY

PARAGUAY

JBS Mercosul

JBS Uruguay


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2

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

1.800,0

2.000,0

0,0

100,0

200,0

300,0

400,0

500,0

600,0

Volume ('000 tons) Revenue (MM US$)

JBS Uruguay

JBS Beef Processing Facility

European Cattle Breed:Major breeds - Hereford and Angus (British).

Focus On Niche Markets: Quality rather than quantity.

Market Access:Access to all major beef importing markets.

Uruguay has about 15,000 m (or 135,000 square feet) for each animal in the farm.

More than 80% of the Uruguayan land dedicated to livestock

Uruguay Beef ExportsFootprint

JBS Tannery

Canelones

Montevideo

1beef processing facility900 head per day

2 Tanneries8,400 hides per day

Source: FAO and INAC UruguayNote 1: Exports revenue compound annual growth rate (2003-2013)Note 2: Exports volume compound annual growth rate (2014-2022)

CAGR

14% CAGR3.1%

JBS Paraguay


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2

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

900,0

1.000,

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0


JBS Paraguay


Herd Growth of 8.0% in 2013, the highest in South America.

Paraguay also registered the highest growth in beef exports, with revenue growing from US$67.7 million to US$904.3 million in thelast decade, an increase of 1,237%.

High capacity utilization of processing facilities.

Production costs are very competitive.

JBS has around 25% of market share in Paraguayan Exports

Paraguay Beef ExportsFootprint

02 beef processing units1,300 head per day

Source: FAO and SENACSA

Asuncin

San Antonio

JBS Argentina


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2

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

1.800,0

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0


g


Argentina's exports are restricted by the government due to the "Meat For All program, created in 2011 by the present government.

Concentration of activities in one plant in order to have efficiency gains, increasing productivity levels in order to reduceoperation costs.

Production focused on the domestic market due to tariffs on exports. Change in product mix and creation of customized and brandedproducts such as beef nuggets to attend local demand.

Argentina has one of the largest beef consumption.

Concentration of activities in one plant in order to have efficiency gains

Argentina Beef ExportsFootprint

5 beef processing units (only 1 active)1,750 head per day1 DC in Pillar

Source: FAO, IPCVA and USDA

Rosario

Venado Tuerto

Pontevedra

Berazategui

Colonia Caroya

JBS Brazil


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2

42 beef processing facilities with capacity toprocess 45,000 head of cattle per day

06 feedlots with capacity to feed 284,000 head of

cattle per period 19 hide facilities with capacity to process 73,000

hides per day

35 Distribution Centers (12 large + 23 regional)

11

4

15

5

3

4

6

2

1

2

2

6

2

2

2

1

1

1

1

1

213

31

2

2

3

3

1

4

1

1

AC

RO

PA

MA

PE

BATO

GO

MT

MS

MG

SP

PR

SC

RS

ES

RJ

JBS is present in 17 of 26 states in Brazil, through:

JBS increased the number of heads processed byabout 20% from 2012 to 2013, while total Brazilian

slaughter increased 4%.

Beef Processing

Feedlot

Distribution Center

Tannery

JBS has 9 businesses related to its Beef Industry thatadd value to by-products in Brazil.Examples are: biodiesel, collagen, casings, etc.

Brazil has over 200 million head of cattle, the worldslargest commercial herd, with double the size of the

second largest country.

2

1

4

4

1

9

JBS Brazil


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3

Export Market HighlightsDomestic Market Highlights

35 Distribution Centers (12 large + 23 regional)

Big demand from emerging markets; i.e. GreaterChina

Fresh Brazilian Beef to the US

JBS unique position due to its US and Brazilianfootprint

Exports and revenue exports growth of 25% in 2013

A further 30% revenue growth in local currency

Successful marketing and advertising campaign 10,000 new clients in 2013 2014: growth expectations due to important events in

Brazil

JBS Leather Business


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JBS is the worlds largest hides/leatherprocessor with capacity to process more than

91,000 hides per day with 26 tanneries andfinishing units in:

Brazil, Argentina, China, Germany, Italy,Mexico, South Africa, Vietnam and Uruguay

Note 1. Not considering leather operations in the US and Australia

JBS has been adding value internally, reducingthe sale of wet blue (first stage of production) andboosting its sales of finished and semi-finishedleather, which contributes to an increase of theprofitability of this operation.

JBS projects processing 15 million hides in 2014,generating revenues of more than US$1.5 billion.

JBS is the main leather supplier to theautomotive industry, which shows excellent growth

perspectives. More than 90% of our production isdirected to the international market.

Overview

JBS Related Businesses in Brazil


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3

Biosiesel

Cans

Trading

Collagen

Cleaning & Hygiene

Carriers

Vehicle Sales

Casings

EnvironmentalRecycler

JBSCore Business

(Meat)

Capacity to produce136,000 tons ofbiodiesel per yearusing beef tallow asprincipal raw material

71 MM cansmanufacturedper month,

100%recyclable

Opportunity toleverage new

businesses

Pioneer in beefbased collagenproduction

COLL GENAdding value to beef

tallow by producingpersonal hygiene and

also cleaning products

1,200 providingstrategic logistics

resulting in cheaperfreight

C RRIERS

Complementary

to JBS Carriers

Largest producerof sausage

casings in theworld

Recycling and reducingcarbon footprint

Closing Remarks JBS Mercosul


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3

JBS USA

JBS USA at a Glance


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3

JBS USA BeefIncluding Australia and Canada JBS USA Pork

JBS USA Chicken (Pilgrims Pride Corporation PPC)

WHEREWEARE

Why North America / Australia?


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3

STRONG DOMESTIC

MARKET

NATURAL RESOURCES &

CAPACITY TO PRODUCEGRAINS/OILSEEDS

WORKFORCE: QUALITY &

AVAILABILITY

INFRASTRUCTURE

LOW-COST ENERGY BEST ANIMAL

HUSBANDRY

PRACTICES



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3

Brazil

20%

India

19%

United

States

13%

Mercosul

10%

Canada

4%

Others

18%

Source: USDA WASDE March 2014.

United

States33%

Brazil9%

EU31%

Canada18%

Other9%

T O PEXPORTERSBEEF T O P

EXPORTERSPORK T O P

EXPORTERSCHICKEN

UnitedStates32%

MiddleEast 3%

Other 4%

Australia17%



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3

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

jan-88

jan-89

jan-90

jan-91

jan-92

jan-93

jan-94

jan-95

jan-96

jan-97

jan-98

jan-99

jan-00

jan-01

jan-02

jan-03

jan-04

jan-05

jan-06

jan-07

jan-08

jan-09

jan-10

jan-11

jan-12

jan-13

U.S. Meat Exports as a % of Production

(Beef + Pork + Broiler)

Exports % Production: Beef + Pork + Chicken Exports % Production: Beef + Pork + Chicken, 12 Month Moving Average

Exports account for 1 of every 5 pounds produced in the U.S.

Source: USDA



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3

449,6

670,9

2012 2013

0,19

0,500,51

1,03

2012 2013

Japan (US Beef exports do Japan in metric tonnes)Greater China (in million metric tonnes)

Examples Where Beef Exports Are Going

USA +70.4%

Australia +259%

102%

228%

Growth Rate

Australia

World

Source: USDA



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4

Colombia +85.4%

Chile +41.8%

Taiwan +24.7%

Angola3rd largest importer in

2013, 456K metric tonnes

Iraq + 45%

China + 38.1%

EXAMPLES WHERE PORKEXPORTS ARE GOING

EXAMPLES WHERE CHICKENEXPORTS ARE GOING

2013

Source: USDA

Our Team


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4

55,610

7,636

5,087

2,539

424

Headcount

United States Australia Mexico Canada Puerto Rico

71,296EMPLOYEESIN 4 COUNTRIES& PUERTO RICO

ANDRE NOGUEIRAJBS USA

BILL RUPPJBS USA BEEF

(CANADA & AUSTRALIA)

MARTY DOOLEYJBS USA PORK

BILL LOVETTEJBS USA CHICKEN

(PILGRIMS PRIDE CORPORATION PPC)

DENILSON MOLINAJBS USA CFO

Human Resources


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4

Continuously improve employee engagement and drive-down turnover

Turnover Results

REDUCTION

MORE THAN A

50%IN TURNOVEROF HOURLY

PRODUCTIONE M P L O Y E E S

F R O M 2 0 0 7 - 2 0 1 3

2007 2008 2009 2010 2011 2012 2013

Company TurnoverHourly

2007 2008 2009 2010 2011 2012 2013

Human Resources


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4

6,2

4,604,2

6,96,4 6,3

2010 2011 2012

JBS Industry

Safety ResultsMeat & Poultry Combined Recordable Rate

Consistently outperform our competitors

Source: Company

Human Resources


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4

200LEADERSHIPPROGRAM

TRAINEESIN 2013

Next generation of leaders

Sales GrowthHistorical Performance


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4

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2007 2008 2009 2010 2011 2012 2013

McElhaney

Cattle Co.

Acquisitions

JBS USA Holdings Net Sales (US$ Billion)

Turn Around + Growth = Value Generation


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4

63,5

1.415,0

2007 2013

JBS USA EBITDA

$ MILLION

JBS USA Acquisitions

McElhaney

Cattle Co.

=BILLION

$4.87

Investments

2013 EBITDA = 3.44 x

JBS USA PorkAt a Glance


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4

12MARKETS H A R E

BRANDSO O T P R I N T3 Pork Plants51,300 Head per Day

1 Lamb Plant2,800 Head per Day

1 Case Ready Plant

JBS USA PorkWhere We Are


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4

48

PORK

3 Processing Facilities; 1 CaseReady Louisville, Kentucky Marshalltown, Iowa Worthington, Minnesota Santa Fe Springs, California

(case ready) Daily Processing Capacity: 51,300

LAMB

1 Processing Facility Greeley, Colorado

Daily Processing Capacity: 2,800

PlantCase Ready

JBS USA Pork8%


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4

955,5842,0 868,5

903,3 904,9

3.501,1 3.518,7

0,0

500,0

1000,0

1500,0

2000,0

2500,0

3000,0

3500,0

4000,0

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

-5,3%

42,7 46,8 50,7 43,886,3

188,1227,6

4,5% 5,6%5,8% 4,8%

9,5%5,4% 6,5%

-23,0%

-19,0%

-15,0%

-11,0%

-7,0%

-3,0%

1 ,0 %

5 ,0 %

9 ,0 %

-0,023

99,977

199,977

299,977

399,977

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Net Revenue (US$ million)

EBITDA (US$ million)

EBITDA Margin (%)

Net Revenue was US$3.5 billion, stable over 2012:

Lower number of processed animals, which resulted in a

decrease of sales volume that was offset by an increase in

prices.

EBITDA was US$227.6 million, increase of 21% over 2012:

Increase in selling prices both in the domestic and

international markets.

EBITDA margin of 9.5% in the 4th quarter 2013.

21%

Strategy


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5

BUY

Continue to focus on:

MAKE

Increase Japan chilled

Improve converted products volume

and margin

Expand case ready

Expand value-added

SELL

Safety

Turnover

Labor efficiency

All expenses elements

Yields

Additional automation

Maintain 70% contract supply Increase supply from medium/smaller producers

Increase programs, such as paylean free, marbled, weight sorted

US Pork - Added Value Products


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Swift PremiumDry Rubbed Ribs

Swift PremiumDry Rubbed

Boneless Backrib

Swift Premium DryRubbed Loin Filet

Swift PremiumSaddle Pack

Boneless PorkChops

Swift PremiumGround Pork

JBS USA BeefAt a Glance


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22MARKET

BRANDS

O O T P R I N T

CANADA

AUSTRALIA

9 Beef Plants27,000 Head per Day11 Feedlots / 1M Head Capacity1 Hide Plant / 5,000 Hides per Day

1 Beef Plant4,000 Head per Day1 Feedlot / 70,000 Head Capacity

8 Beef Plants

8,300 Head per Day5 Feedlots / 152,000 Head Capacity5 Lamb Plants / 22,000 Head per Day1 Hide Plant / 6,000 Hides per Day

34 27U.S. CAN AUSU.S.

SHARE

JBS USA BeefWhere We Are


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10 beef and small stockslaughtering plants located in

New South Wales, Queensland,Victoria and Tasmania

7 distribution centers situated inSydney, Melbourne, Brisbane,Perth, Adelaide, Dinmore &Townsville

5 cattle feedlots located inQueensland and New South Wales

AUSTRALIA

10 beef and small stock slaughtering plantslocated in Brooks, AB CA; Cactus, TX;Grand Island, NE; Greeley, CO; Green Bay,WI; Hyrum, UT; Omaha, NE; Plainwell, MI;Souderton, PA; and Tolleson, AZ.

11 cattle feedlots located in Brooks,AB, CA; Dalhart TX; Hartley, TX;Kersey, CO; Lamar, CO; LaSalle,CO;Malta, ID; Texhoma, OK; Ulysses,KS; Wellton, AZ; and Yuma, CO.

U.S. &CANADA

Daily Processing Capacity: 31,000 Daily Processing Capacity: 8,300

JBS USA Beef (including Australia and Canada)


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103,3-25,1

161,7125,3 113,9

223,9

375,8

2,1%-0,6%

3,4% 2,7% 2,4% 1,3% 2,0%

-30,0%

-28,0%

-26,0%

-24,0%

-22,0%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0 ,0 %

2 ,0 %

4 ,0 %

6 ,0 %

8 ,0 %

-100

0

100

200

300

400

500

600

700

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

4,9 4,3 4,8 4,7 4,8

17,5

18,6

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

-1,0%

EBITDA Margin (%)

Net Revenue (US$ billion)


Net revenue was US$18.6 billion, increase of 6.3% compared

to 2012:Increase in domestic sales volume and in exports in Australia.

EBITDA was US$375.8 million, increase of 67.8% compared to

2012:

Increase in domestic market beef prices during the 4th quarter,

offsetting the increased costs of raw material.

JBS maintained the positive results registered during the year of

2013, a reflection of the focus on operational efficiency, costs

reduction and expansion in deals with key customers

The operation in Australia continues to deliver solid and consistent

results, influenced by strong demand from Asian countries, especially

China.

6.3%

68%

Marketing Conditions


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Tight supplies forecast in North America as strong signs of heifer

retention & rebuilding occur due to much improved moisture conditions

Global trade for North American and Australian Beef continues to bestrong.

Higher prices will impact demand for North American beef but a

downturn in protein supplies should support.

Strategy


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Capital investments in multiple ground beef capabilities and value

added production will improve top line revenue opportunities.

Continued alignment of cattle supplies with plants will lessen the impactof tight supplies.

Strong plant focus on yield improvement in plants.

Continued success in aligning with customers to jointlyoptimize value with the consumer.

JBS USA ChickenPilgrims Pride Co.


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57

19MARKETS H A R E

BRANDSO O T P R I N TU.S.

MEXICO

PUERTO RICO

31 Chicken Plants6.5M Birds per Day

3 Chicken Plants800,000 Birds per Day

1 Chicken Plant

JBS USA ChickenWhere We Are


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PILGRIMS

25 U.S. & Puerto Rican Processing Facilities

3 Mexican Processing Facilities Queretaro San Luis Potosi

Tepeji Del Rio

Daily Processing Capacity: 7.5 Million birds

Aibonito, PR

Athens, GA Broadway, VA Canton, GA Carrollton, GA Chattanooga, TN De Queen, AR Douglas, GA

Elberton, GA Ellijay, GA Enterprise, AL Gainesville, GA

Guntersville, AL

Live Oak, FL Lufkin, TX Marshville, N.C. Mayfield, KY Moorefield, WV Mt. Pleasant, TX Nacogdoches, TX Natchitoches, LA

Russellville, AL Sanford, N.C. Sumter, SC Waco, TX

JBS USA Chicken (Pilgrims Pride Corporation - PPC) 17%


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2,2 2,0 2,2 2,1 2,0

8,18,4

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

-6,5%

67,4117,7

265,0 226,1197,2

402,6

805,4

3,1%5,8%

12,1% 10,6% 9,6%

5,0%

9,6%

-30,0%

-25,0%

-20,0%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Net Revenue (US$ billion)


EBITDA Margin (%)

Net Revenue was US$8.4 billion, increase of 3.6% compared

to 2012.Growth in sales resulting primarily from an increase in industry

prices associated with good demand for poultry products

combined with a tight supply.

EBITDA of US$805.4 million, increase of 100% over 2012 and

margin of 9.6%:

Improved pricing, improved sales mix, improved yields,

reduction in processing cost and SG&A contributed to improve

PPC results.

Operating net cash flow was US$878.5 million for the full year,

adding strength to the Company's balance sheet.

3.6%

100%

Strategy


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Best of class qualitymanagement systems

Employ greater use ofcategory management

Execute effective operatorstrategy

Export dedicated assets

Export tailored products Development of new markets

Results- oriented culture

consistent with JBS values

Delayering and downsizing

management driving lowerSG&A

Growing talent internally and

developing people

Be a valued

partner with ourkey customers

Relentless

pursuit ofoperationalexcellence

Strategicallygrow valuedadded exports

Accountability

and ownershipculture

Be the bestmanaged & most

respectedcompany inour industry

Best of class yields Best of class live cost and

processing costs Optimal sales mix and price Quality, safety and turnover

On a Path Toward Growth


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Were ReadyRenewed Sales& Brand Focus

Mix andRationalization

CustomerProductsCapacity

OperationalEfficiency

Improvedcommitment

to quality

Whats Next


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Continue Pushing OperationalEfficiencies

Generate Superior Returns& Optimize Capital Structure

Capture Growth Opportunities

Higher, Less Volatile Earnings

SHAREHOLDERVALUE

Whats Next


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LeverageExistingAssets

Expand actual plants andlines with high-ROIC

investment opportunities

$150 million of CapExexpected

About half directed togrowth / increaseefficiency

AccretiveAcquisitions

Chicken: ComplementaryGeographies or Differentiated

Branded chicken

Prepared/ Packaged Foods:Branded and differentiatedproducts

Increase

Footprint inAttractiveMexicoChickenIndustry

Current footprint only coversa portion of the country

Opportunity to expandgeographically

Evaluate bolt-on acquisitionsor greenfield opportunities

FastGrowingValue-

AddedExports

Leverage JBS capabilities to

sell direct to customers inforeign markets

Develop brands / productsdesigned for local preferences

Focus on value-addedproducts, not just commoditydark meat

Capture significant expectedgrowth in chicken demand inforeign markets


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JBS Foods

JBS Foods at a Glance

JBS Foods is a leading platform with a strong brand portfolio across value added food products in Brazil


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JBS Foods is the branded convenience poultry andpork business of JBS in Brazil

2ndlargest meat based packaged food Company inLatin America

2ndlargest producer and exporter of poultry and porkin Brazil

53 productive units, 20 distribution centers and45,000 employees

Strong domestic and international presence withhigh growth potential

Integrated platform with diversified product portfolio

Fully integrated pork and poultry business

Source: CompanyNota1. Pending regulatory approval

JBS

Foods

JBS Foods: Footprint

National footprint with a production capacity of 4.4 mm bird / day and 85,000 tons of further processed products /month


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Industrial FootprintIndustrial Capacity per Product Line

month

22,200 hogs / day

4.4 mm birds / day

80,000 tons of value added further processedproducts / month

Source: Company

Distribution Centers

Production Facilities Footprint

Further Processed Products

Pizza

Lasagna

Hamburger

RefrigeratedPasta

Breaded

Products

Ready-to-eatMeals

JBS Foods focus on 5 pillars to make a strong and fast turnaround of Seara

Turnaround Under Way


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Management

Market Orientated

Performance

Growth Culture ofExcellence

Our Team and Our Culture Makes the Difference

JBS has built an exceptional team with deep knowledge in the industry


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6( Years of experience, occupying leadership positions in the industry)

Our Values

Determination

Simplicity

Discipline

Sincerity

Meritocracy

What We Believe

Best people in the right place

Ownership attitude

Leadership by Example

Team Work

Focus on Details

Culture of ExcellenceOur Team

Gilberto TomazoniCEO (30 years)

James ClearyInternational Market (24 years)

Srgio SampaioProduction (20 years)

Ivo DreherFinancial/Adm (17 years)

Osrio Dal BelloLive Production (34 years)

Joanita KaroleskiSupply Chain (10 years)

Almir PerukHuman Resources (25 years)

Ronaldo MullerQuality and R&D (27 years)

Ivan SiqueiraIndustrial (15 years)

Eduardo BernsteinMarketing (26 years)

Nelson TeixeiraDomestic Sales (26 years)

Market Orientated: Streamlining and Repositioning of Brands

JBS Foods is currently rationalizing its brand portfolio and focusing on the quality of its products and services


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JBS Foods Brands Pre-Acquisition JBS Foods Brands Repositioning

Premium

Mainstream

Source: Company

Access /Regional

Market Orientated: Improved Pricing Strategy

New pricing strategy, focused on results rather than volumes, with strict controls and defined responsibilities
http://www.seara.com.br/seara/linha/margarinas/http://www.seara.com.br/seara/linha/margarinas/http://www.seara.com.br/nhobento/


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Previous Model New Model

Structure

Commercial TeamAutonomy

Focus

Responsible for Price

Management

Decentralized, with lack of standard pricingprocess and management

Highcommercial team concentrated pricingstrategy

Volumes, with low commitment to pricing andconsequently financial results

Fragmented, mostly commercial department

Centralized, with standard and structuredprocess

Defined roles and responsibilities

Mediumfocus on policy execution

Financial results, based on mathematicalmodeling

Dedicated pricing department

Source: Company, Nielsen

JBS Foods: Global Positioning and International Growth Strategy

Comprehensive strategy to explore opportunities in further processed foods and international markets


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International Growth StrategyRevenue Breakdown per Category4Q13 (%)

Strategic approach Instead of transactionalapproach

Revenue Breakdown per Region4Q13 (%)

Source: Company

Develop strategic partnerships withimporters/distributors in our key markets

Develop Seara into a recognized global brand forquality poultry, pork and further processed products

Increase our presence in the supply of FPP toglobal QSR customers

Improve our product mix by increasing sales ofretail packs

Specific strategies for new markets (eg. Pork forJapan)

Middle East31%

Asia / Oceania14%

Japan12%

Africa11%

North Africa10%

Europe10%

Americas8%

CIS / Balkans4%

FreshExports

48%

FPP Exports6%

DomesticMarket46%

Improved Performance from Farm to Market

Efficiency gains in live costs, manufacturing and distribution


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Main InitiativesStage of Value Chain

Improved Distribution Network

Integrated demand planning

Renewed logistics network

Live Costs and Efficient Feed Conversion

Cycle optimization through revision of practices and improved feed conversion

Implementing best practices in feed nutrition and livestock handling

Increase in Yields and Optimization ofProduct Mix

Focus on operational excellence with new operational standards

Optimization of product mix per industrial unit

Product mix more aligned with availability and quality of raw materials, increasingrevenue generation

Renewed Go-To-Market Strategy

Marketing strategy focused on profitability and portfolio simplification

Simplification of brand architecture

Category management

JBS Foods has identified total potential gains of R$1.2 billion through internal management initiatives

Value Creation Through Management Initiatives in 2014
http://4.bp.blogspot.com/-4nxgW7ip1N4/T9cRr6T_F_I/AAAAAAAANVQ/MUsdgQdUK-c/s1600/g3.JPG


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Live Animal

Total Value of Opportunities: R$1.2 billion

Price and SalesStrategy

Industrial Domestic andInternationalLogistics

Finance andAdministration

Non Core Supplies

R$287 mm R$207 mm R$472 mm R$118 mm R$30 mm R$87 mm

Value of Opportunities Identified in JBS Foods (R$ mm)

Growth Opportunities Through Organic and Inorganic Growth

Additional growth opportunities through capacity expansion and product mix diversification


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JBS17%

Player A32%

Others51%

JBS14%

Player A29%

Others57%

Capacity Expansion Increase processing capacity and geographical

diversification

Product Mix Diversification Increase category diversification

Leasing of BR Frangosproduction unit in Northof Paran

Acquisition of Massa Leve in 2013 Main products include pastas, ready-to-eat

meals, pizzas and pastry based products

Rationale Recent Movements

Strategies for Inorganic Growth

Share of Pig Slaughter in Brazil2013 (%)Share of Birds Slaughter in BrazilLTM Until Sep13 (%)

Source: Company, SIF, SECEX, IBGE, JBS

Idle Capacity We have around 40% in idle capacity of FPP

Numerical Distribution We are servicing direct 58,000 customers and have potential to increase to 140,000

Extensive experience in integrating and extracting synergies in acquisitions

We Are Confident That We Will Continue to Deliver Value to OurStakeholders as Our Track Record Shows

Key Initiatives Value Creation in the Acquisition of Pilgrims Pride (US$ mm)


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800 42

144110 1,095

2,730

3,825

Dec-09 Nov-10 Jan-12 Mar-12/Nov-12 Total JBSInvestment

Value Creation Current MarketValue of JBS

Stake

Cost reduction

Margin improvement

SG&A control

Efficiency improvement

Integration of processes

Brand repositioning

Key Initiatives Value Creation in the Acquisition of Pilgrim s Pride (US$ mm)

Pilgrims Pride

acquisition (2009)

Swift acquisition

(2007)

JBS USA

acquisition of 64%stake in PPC

Increase

ownership to67.3%

JBS USA

oversubscription in

PPC rights

offering

Acquisition of

additional shares

from Lonnie Bo

Pilgrim and Don

Jackson1

64.0% 67.3% 68.0% 75.5%

JBS stake in PPC

1 JBS USA acquired 18.7 mm shares from Lonnie Bo Pilgrim, the founder and former controlling shareholder of PPC (US$107.2 mm) and 455.3 thousand shares from Don Jackson, JBS USAs former CEO(US$2.7 mm)2 PPC market value of US$4,958 mm (as of March 14, 2014)

Value Creationof 250%


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Mission

To be the best in what we set out to do, totally focusedonour business, ensuring the best products and

services for our customers, solidity for our suppliers,

satisfactory profitabilityfor our shareholders and thecertainty of a better future to all our employees.

Documents

JBS Day Presentation