EX-99.1 2 ea020335901ex99-1_jbssa.htm EARNINGS PRESENTATION (IN BRAZILIAN REAIS) (ENGLISH TRANSLATION)

Exhibit 99.1

 

Results 4Q23 & 2023 JBS

 

 

# 1 Global beef producer #1 Global poultry producer #2 Global pork producer Aquaculture Plant - based and alternative proteins business #3 European producer of plant - based protein. #2 salmon producer in Australia . In 2024, we will complete a new cultivated protein facility in Spain. Prepared Foods #1 Brazilian producer of plant - based protein. #2 in the prepared foods market in Brazil. #1 in the prepared foods market in the United Kingdom. #1 in the prepared foods market in Australia and New Zealand. LEADERSHIP NEW AVENUES OF GROWTH Global Leadership 2

 

 

1 . Enhance Scale in Existing Categories and Geographies Capture significant synergies 2 . Increase and Diversify Value - Added and Brand Portfolio Long Term Growth Strategy Pursuing additional value - enhancing growth opportunities with financial discipline Improve operational performance Enhance growth and margin profile Realize benefits of vertical integration 3 . New proteins Close to the Final Consumer - Multichannel 3

 

 

Source: JBS Income Origin 50% United States 27% Brazil 9% Australia 7% Europe 4% Canada 3% Mexico Brazil 13% South America 1% Canada 3% Mexico 5% USA 49% Europe 9% Asia 14% Africa & Middle East 3% Australia & New Zealand 3% Net revenue 4Q23 (by destination) 4 Cattle Pork Lamb Poultry Aquaculture Leather Plant Based Sales Offices Center for Innovation Cultivated Protein Prepared Foods Strategy Geographic & Protein Diversification

 

 

16.5 17.6 31.1 36.9 38.6 42.9 51.2 48.9 49.0 51.1 49.7 51.7 52.3 65.0 72.6 72.9 0.7 0.6 2.1 1.9 2.2 2.8 4.7 4.0 3.3 4.2 4.0 5.0 5.6 8.5 6.7 3.5 2008 2009 2010 2011 2012 2013 2014 2016 EBITDA 2017 2018 2019 2020 2021 2022 2023 2015 Net Sales 3.8% 3.7% 6.9% 5.1% 5.8% 6.6% 9.2% 8.2% 6.6% 8.2% 8.2% 9.7% 13.0% 10.9% 9.2% 4.7% JBS Australia JBS USA Pork PPC Consolidated Seara JBS Brazil JBS Beef North Am. EBITDA Margin USD Billion Stability of Results Geographic & Product Diversification Leading to lower volatility in results. 5

 

 

Valued Added: Diversified Portfolio of Brands Worldwide

 

 

More Than 270,000 Team Members Globally 13 MIL Team members in Australia and New Zealand 152 K Team members in Brazil 12 K Team members in Mexico 7 19 MIL Team members in Europe 72 K Team members in the USA and Canada Largest Employers in Brazil: 152,000 Team Members

 

 

Investments 8 Completion of high added - value food facilities New Seara factory with lines for breaded chicken and sausages, in Rolândia (PR), Brazil • Over R$ 1 billion in investments. • It is considered the most modern JBS facility in Brazil one of the most modern in the world. • Currently, it employs 4,500 team members, with the capacity to expand to 6,000. New Principe Foods factory, in Columbia (MO), USA • Over US$ 200 million in investments. • Strategy aligned with the growing demand from retail and foodservice for Italian meats and charcuterie . • 100 new jobs created , with projections to hire 200 people for the next year.

 

 

Investments 9 Expansion and Modernization: Expansion of the lamb unit in Cobram, Australia • Investment of US$ 20 million . • Processing capacity expanded to meet the growing regional demand. Expansion of the cattle unit of Friboi in Diamantino (MT), Brazil • Investment of R$ 800 million . • The expansion will triple the plant's production capacity, making it the largest in Latin America . Modernization of the largest chick hatchery in Brazil, located in Rolândia (PR) • Investment of R$ 135 million . • Capacity to hatch over 16 million eggs per month. Considered the most technologically advanced hatchery in the country.

 

 

Construction of BioTech Foods' first commercial - scale cultivated meat facility in Spain Construction of the largest Cultivated Protein Research Center in Brazil • Investment of US$ 41 million in Spain and US$ 22 million in Brazil. • These investments are landmarks in the sector, and in Brazil, it will be the largest biotechnology food research center. 10 Investments Cultivated Protein

 

 

Generation of energy from methane • Investment of R $ 54 million to implement biodigester systems, which produce biogas - renewable and clean energy - in nine Friboi operations in Brazil . • Investment of R$ 220 million to globally expand the use of biogas in 14 factories in the United States and Canada. Individual traceability project in Pará, Brazil • Investment in the implementation of chips for individual traceability across the state's livestock, from birth onward. This initiative aims to enhance integrity and transparency within the region's production chain. Launch of Green Offices 2.0 with a focus on small producers and the adoption of technologies for increased productivity • The initiative has already achieved the milestone of 8,000 socio - environmental farm regularizations in Brazil. In 2023, it accounted for a total of 4,000 farm regularizations with 2,300 hectares allocated for forest restoration . 11 Investments in Sustainability

 

 

JBS Fund for the Amazon After 2 years of operation: Over 5,000 families benefited R$ 73 milion earmarked 50 units conservation and indigenous land units supported 96 businesses supported (community and individual) 1.9 million hectares conserved and/or under improved/restored management 20 projects supported People + Forest + Livestock farming Promote economic models for small l ivestock producers in the Amazon that : People Increase the income of family farmers 3,500 families involved; Increase in income of 1,2 times per property; 6 - fold increase in income per intensified hectare. 1 Forest Guarantee trackability from the beginning of the chain 380,000 hectares monitored; 50,000 hectares restored; Zero deforestation on all properties involved. 2 Livestock farming Lead to zero deforestation on these properties 2,7x more productivity; +350,000 calves tracked; Improvement in grazing lands: greater biodiversity and carbon retention in the soil. 3 12

 

 

Social JBS Projects Around the World: Instituto J&F Over 900 students enrolled in the education center, preparing young people for business Better Futures Tuition - free community college tuition for JBS team members and their dependents. More than 6,000 people signed up. JBS Sem Fronteiras Initiative that takes team members from Brazil to work in the company’s overseas operations. Instituto J&F MASTER Continuous training program for team members on the front line of production. Hometown Strong Community investment projects that support the communities where JBS is located through cash donations, infrastructure improvements and affordable housing. 13

 

 

From a small meatpacker in the interior of Brazil to one of the world’s leading food companies The story of JBS began in 1953 when its founder, José Batista Sobrinho , started operations in a small plant with the capacity to process five head of cattle per day, in Anápolis (GO), Brazil. Today, JBS is one of the world's leading food companies, present in more than 20 countries and selling products in 190 nations . It employs more than 270,000 people globally and is the largest employer in Brazil. JBS 70 Years Milestones: 1953 Foundation of the “Casa de Carnes Mineira”, in Anápolis - GO, Brazil 14 1957 Departure to Brasilia to supply beef to the region 1969/1970 Acquisition of the first slaughterhouses in Formosa - GO and creation of the name Friboi 90s/00s Acquisitions of plants in Anápolis, Goiânia, Barra do Garças and Andradina 2007 IPO on the Brazilian stock exchange and acquisition of Swift in the US and Australia 2009 Incorporation of Bertin (Brazil) and acquisition of Pilgrim’s (USA) 2013 Acquisition of Seara 2021 Acquisition of Vivera, Rivalea, Sunnyvalley Kings, Principe, Huon and Biotech Foods

 

 

Financial & Operating

 

 

Capital Markets : (i) Announcement of the dual listing plan in Brazil (B 3 ) and in the USA (New York Stock Exchange) with the aim of increasing the Company's market value, attracting a wider base of investors, and expanding its investment capacity ; and (ii) registration of the 11 Senior Notes with the SEC (Securities and Exchange Commission), with the objective of expanding the investor base, liquidity of the notes and investor confidence . With this movement, JBS now has the obligation to adapt to SOX rules, have its financial statements in accordance with PCAOB standards, be subject to FCPA rules, as well as the obligation to publish a 20 - F with the SEC . Liability Management : In September, JBS issued US $ 2 . 5 billion in Senior Notes, of which : (i) US $ 1 . 6 billion with a coupon of 6 . 75 % and maturity in 2034 ; and (ii) US $ 900 million with a coupon of 7 . 25 % and maturing in 2053 . In October, CRA (Agribusiness Receivables Certificates) were issued in the amount of R $ 1 . 7 billion . With the resources, JBS increased its average debt term to 11 years . At Pilgrim’s Pride, a subsidiary of the Company, the following Senior Notes were issued during 2023 : (i) US $ 1 billion with a coupon of 6 . 25 % and maturing in 2033 ; and (ii) US $ 500 million with a coupon of 6 . 875 % and maturing in 2034 . The resources were mainly used to repurchase Senior Notes issued by the company and pay short - term debt . ESG : As part of its commitment to sustainability goals, JBS expanded its 100 % electric truck fleet through No Carbon, totaling 260 trucks . Additionally, the Company began to introduce the use of 100 % Biodiesel in its Brazilian truck fleet, produced by JBS Biodiesel . On the front to combat deforestation, JBS ended the year with 20 green offices aimed at regularizing and reintegrating ranchers . Since the beginning of the project, almost 20 thousand ranchers have been assisted, more than 8 thousand have been regularized and 3 . 4 million heads of cattle have been reinstated . Furthermore, to contribute to the circular economy and renewable energy, more than R $ 220 million have already been invested in biogas capture projects in the USA, Canada, Brazil and Australia, with the potential to reduce significantly scope 1 emissions . Investments : i) Seara inaugurated its industrial complex in Rolândia (PR), the largest and most automated chicken breaded and hot dog facility in Latin America ; (ii) JBS USA Pork began production at its first Italian specialty meats plant in North America, continuing the strategy of adding value to the Company's portfolio ; (iii) BioTech Foods began construction of its first commercial - scale cultured meat plant in Spain and the first R&D center for cultured protein in Florianópolis ; Shareholder Compensation : Payment of interim dividends in the amount of R $ 2 . 2 billion, representing R $ 1 per share, attributed to the minimum mandatory dividends for the 2023 fiscal year . 2023 - Financial and Operating Highlights

 

 

96,341 92,865 4Q22 4Q23 Net Revenue (R$ million) 4,574 5,104 4.9% 5.3% 4Q22 4Q23 Ebitda Margin (%) Adjusted EBITDA (RS million) 10,688 11,095 11.5% 11.5% 4Q22 Gross Margin (%) 4Q23 Gross Profit (R$ million) Net Result (RS million) 2,350 83 4Q22 4Q23 4Q23 Consolidated Results

 

 

15,458 - 1,061 2023 374,852 363,817 2022 2023 Net Revenue (R$ million) 34,568 17,146 9.2% 4.7% 2022 2023 Adjusted EBITDA (RS million) Ebitda Margin (%) 59,478 39,649 15.9% 10.9% 2022 2023 Gross Profit (R$ million) Gross Margin (%) Net Result (RS million) 2022 2023 Consolidated Results

 

 

Operating Cash Flow (RS million) Free Cash Flow (RS million) 3,441 1,991 4Q22 4Q23 CAPEX (R$ million) 666 4,334 4Q22 4Q23 55% - Maintenance 45% - Expansion 44% - Maintenance 56% - Expansion 5,850 8,469 4Q22 4Q23 4Q23 Consolidated Results

 

 

Operating Cash Flow (RS million) Free Cash Flow (RS million) 17,426 16,998 2022 2023 11,227 7,492 2022 2023 CAPEX (R$ million) - 136 1,865 2022 2023 51% - Maintenance 49% - Expansion 45% - Maintenance 55% - Expansion 2023 Consolidated Results

 

 

8.0x 3.2x 0 ¹ Includes available cash resources and revolving and guaranteed credit lines from JBS USA and JBS SA. ² Includes debts in other currencies, such as Euros and Canadian dollars. Net Debt (Bn) / Leverage / Interest Coverage Proforma Debt Amortization Schedule (US$ Million)¹ Average Principal Term: 11 yrs Average Cost: 5.73% p.a. 79.2 74.1 15.2 15.3 2.29x 2.26x 4.42x 4.32x 4Q22 4Q23 Net Debt (R$) N 1 e 5 t 0 D 0 e 0 b t (US$) Leverage (R$) 10000 Leverage (US$) I n t 5 e 0 r 0 e 0 st Cover (x) Short Term and Long Term LP 95.5% CP 4.5% Source Breakdown Bonds 84% Banks 5% CRA 11% Entity Breakdow JBS USA 84.5% JBS SA 13.7% Seara 1.8% Currency and Cost Breakdown USD² 86.3% 5.13% a.a. BRL 13.7% 10.74% a.a. 4,702 4,136 1,103 713 1,904 2,943 2,996 2,109 166 478 2,415 883 566 2,882 450 2,882 450 Cash and Equivalents Payments After 12/31/23 Until 02/29/24 Proforma Short Term 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 to 2038 2039 to 2051 2052 2053 Cash and Equivalents Linhas de crédito Rotativas USD 2.9 bi nos EUA Linhas de crédito Rotativas USD 450mi no Brasil 794 97 151 20 6 13 104 1,089 0,1 207 1,808 Pagamentos Após 31/12/23 Até 29/02/24 Debt Profile

 

 

Adjusted EBITDA (R$ milhões e %) 10.7% 11,032 10,453 4Q22 4Q23 704 670 6.4% 6.4% 4Q22 4Q23 42,968 41,300 4,606 1,804 4.4% Net Revenue (R$ million) Net Revenue (R$ million) Adjusted EBITDA (R$ milhões e %) SEARA 4Q23 2023 Seara Products 2022 2023 2022 2023 22

 

 

Net Revenue (R$ million) Adjusted EBITDA (R$ milhões e %) 874 2.4% 340 5.9% 4Q22 4Q23 14,271 14,905 4Q22 4Q23 Net Revenue (R$ million) Adjusted EBITDA (R$ milhões e %) 2,407 2,331 4.1% 4.2% 58,949 55,532 4Q23 2023 JBS BRASIL JBS BRASIL Products 21 2022 2023 2022 2023

 

 

Net Revenue (USGAAP - US$ million) Adjusted EBITDA (USGAAP - US$ million and %) 5,454 6,273 4Q22 4Q23 113 - 141 - 2.3% 2.1% 4Q22 4Q23 22,069 23,303 1,932 0.1% 12 Adjusted EBITDA (USGAAP - US$ million and %) 8.8% Net Revenue (USGAAP - US$ million) JBS BEEF NORTH AMERICA 4Q23 2023 JBS BEEF NORTH AMERICA Products 2022 2023 2022 2023 23

 

 

1,567 1,730 4Q22 4Q23 79 172 5.0% 9.9% 4Q22 4Q23 6,323 6,209 337 424 5.3% 6.8% Net Revenue (USGAAP - US$ million Adjusted EBITDA (USGAAP - US$ million and %) Net Revenue (USGAAP - US$ million Adjusted EBITDA (USGAAP - US$ million and %) JBS AUSTRALIA 4Q23 2023 JBS AUSTRALIA Products 2022 2023 2022 2023 24

 

 

2,016 2,102 4Q22 4Q23 97 188 4.8% 9.0% 0.0 4Q22 4Q23 8,153 7,714 590 472 7.2% 6.1% Net Revenue (USGAAP - US$ million) Adjusted EBITDA (USGAAP - US$ million and %) Net Revenue (USGAAP - US$ million) Adjusted EBITDA (USGAAP - US$ million and %) JBS USA PORK 4Q23 2023 JBS USA PORK Products 2022 2023 2022 2023 25

 

 

4,127 4,528 4Q22 4Q23 310 1.5% 63 Adjusted EBITDA (USGAAP - US$ million and %) 6.8% 4Q22 4Q23 17,468 17,362 1,648 1,034 9.4% 6.0% Net Revenue (USGAAP - US$ million) Net Revenue (USGAAP - US$ million Adjusted EBITDA (USGAAP - US$ million and %) PILGRIM’S PRIDE PPC Products 4Q23 2023 2022 2023 2022 2023 26

 

 

27 Nota 1: Considera China e Hong Kong 25.4% Greater China¹ 13.3% EUA 11.6% Africa & Middle East 8.5% South Korea 8.3% Japan 6.7% European Union 5.7% Mexico 3.5% South America 3.2% Canada 2.7% Philipines 11.0% Others CONSOLIDATED EXPORTS Export destinations of JBS during 2023 Exports Revenue in 2023: US$18.4Bi - 3.8% vs. 2022 Asia corresponded to ~ 48% of total exports

 

 

JBS 70 years ago, feeding what feeds the world.