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JBS Institutional PresentationIncluding 2Q14 Results
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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 of JBSmanagement concerning the future of the businessand its continued access to capital to fund the Companys business plan. Such forward-looking statementsdepend, substantially, on changes in market conditions, government regulations, competitive pressures, theperformance of the Brazilian economy and the industry, among other factors and risks disclosed in JBS fileddisclosure documents and are, therefore, subject to change without prior notice.
Disclaimer
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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
More than 195,000 employees
Productioncapacity
12 million birds/day
Chicken
70,000 hogs/day
Pork
25,000 lambs/day
Lamb
100,000 hides/day
Leather
100,000 heads/day
Beef
76,000 tons/month
VAP
Note 1: Value Added Products
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Market Analysis
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Worlds Food* Surpluses and Deficits
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
Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.Source: The Economist
Net intra-regional trade, million tonnes
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USA17%
Brazil13%
E.U.11%
China10% Argentina
4%
Others45%
USA
16%
Brazil15%
E.U.11%
China10%
India*5%
Others43%
Global Beef Consumption
Sector Overview: Beef
Global Beef Production
Source: USDA*Buffaloes
Total 2013: 67.7 mm tons cwe
2013
Beef Trade Commerce in 2013 (mm tons cwe)
# Largest exporters Largest importers
1 Brazil 1,849 20% Russia 1,031 14%
2 India* 1,765 19% USA 1,021 14%
3 Australia 1,593 17% Japan 760 10%
4 USA 1,172 13% Hong Kong 473 6%
5 New Zealand 529 6% China 412 6%
Total: 67.2 mm tons cwe
Brazil and the U.S. are responsible for 31% of the worlds beef production
Per Capita Consumption
Global Beef Production Forecasts
(mm tons cwe)
42
33
30
25
24
3.4
Argentina
Uruguai
Brasil
EUA
Austrlia
China
(kg/capita) 2013
Global avg.: 6.6 Kg
2013
Both Brazilian and American beef production should increase approximately
1mm tons until 2023, reaching 10.3 mm and 11.3 mm tons, respectively
JBS is present in the main beef exporting countries
Source: FAO*cwe = carcass weight equivalent
Source: FAO*Buffaloes
Source: FAO
67.2 67.4 68.2 68.7 69.8 71.0 72.1 72.9 73.974.8 75.6
0.0
25.0
50.0
75.0
100.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
CAGR (%)
2013 - 2023Brazil1.4%USA0.1%
World1.2%
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107.4 110.0 112.6 115.3117.8 120.5 123.3 126.3
129.0 131.8 134.5
0.0
30.0
60.0
90.0
120.0
150.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
50
48
45
34
32
10
Global Poultry Production Forecasts
Sector Overview: Poultry
USA18%
China16%
Brazil12%E.U.
12%
Russia4%
Mexico3%
Others35%
Total 2013A: 107.4 mm tons rtc
Global avg:12,8Kg
(mm tons rtc)
Poultry Trade Commerce in 2013 (mm tons rtc)
China17%
USA15%
E.U.11%
Brazil9%Russia
4%
Mexico3%
India2%
Others39%
Total 2013: 107.4 mm tons rtc
Poultry production should increase around 25% in the period from 2013 to 2023,
reaching 134.5 mm tonsBrazil and the U.S. are responsible for 30% of the worlds beef production
# Largest exporters Largest importers
1 Brazil 3,755 34% Japan 850 8%
2 USA 3,692 33% Mexico 835 8%
3 E. U. 1,235 11% Saudi Arabia 810 7%
4 Thailand 540 5% E.U. 760 5%
5 China 415 4% Russia 554 4%
China shouldreach 14kg/capitaby 2023
2013
Global Poultry Production
GlobalPoultryConsumption Per Capita Consumption
(kg/capita) 2013
JBS is present in the main poultry exporting countries
Source: FAO Source: FAO
Source: USDASource: FAO*rtc = ready to cook
CAGR (%)
2013 - 2023
Brazil1.7%USA2.2%
World2.3%
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China48%
E.U.18%
USA7%
Russia3%
Vietnan3%
Brazil3%
Others18%
(mm tons cwe)
Global Pork Production Forecasts
GlobalPorkConsumption
Sector Overview: Pork
China48%
E.U.19%
USA9%
Brazil3%
Vietnan3%
Others18%
Total 2013A: 115.2 mm tons cwe
Global Pork Production
Total 2013A: 115.4 mm tons cwe
Pork production should increase 12% in the period from 2013 to 2023, reaching 129.4
mm tons in 2023Brazil and the US are two of the worlds largest pork producers
Per Capita Consumption
61
40
27
22
14
(kg / capita) 2013
Global avg. 2013A: 14.9Kg
Pork Trade Commerce in 2013 (mm tons cwe)
# Largest exporters Largest importers
1 USA 2,292 32% Japan 1,240 18%
2 E.U. 2,204 31% Russia 900 13%
3 Canada 1,245 18% Mexico 785 11%
4 Brazil 600 9% China 750 11%
5 China 250 4% Hong Kong 400 6%
2013
115.4 116.9 118.8 120.3 121.4 122.7 123.8125.2 126.7 128.1 129.4
0.0
30.0
60.0
90.0
120.0
150.0
2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E
Others USA Brazil
JBS is present in the main pork exporting countries
Source: FAO Source: FAO
Source: USDASource: FAO*cwe = carcass weight equivalent
CAGR (%)
2013 - 2023
Brazil1.6%USA1.0%
World1.2%
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Consolidated Results
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Summary of 2Q14 Results
Net revenue of R$29.0 billion, an increase of R$7.0 billion, or 32.1% higher than 2Q13.
Gross profit of R$4.25 billion, expansion of R$1.3 billion, or 44.3% higher than 2Q13.
Consolidated EBITDA of R$2.4 billion, an increase of 45.9% over 2Q13. EBITDA margin was 8.4%.
Net income of R$254.3 million, which corresponds to an EPS of R$0.09.
The consolidated 2Q14 exports grew 45% compared 2Q13, reaching US$4.3 billion.
JBS ended 2Q14 with leverage (Net Debt/EBITDA LTM) of 3.15x, compared to 3.26x in 1Q14.
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Businesses Units Highlights 2Q14
JBS Foods recorded net revenue of R$3,084.5 million and EBITDA of R$440.4 million, with an EBITDA margin of 14.3%.
JBS Mercosul posted net revenue of R$6,291.4 million in 2Q14, 15.8% higher than 2Q13 and EBITDA of R$634.3 million, with anEBITDA margin of 10.1%.
JBS USA Beef posted net revenue of US$5,331.4 million, 10.9% higher than 2Q13. EBITDA was US$108.6 million, with anEBITDA margin of 2.0%
Net Revenue of JBS USA Pork totaled US$1,028.3 million, 18.4% higher than 2Q13, and EBITDA of US$113.8 million, with anEBITDA margin of 11.1%.
JBS USA Chicken (PPC) reported net revenue of US$2,186.8 million, stable compared to 2Q13. EBITDA was US$338.6 million,with a margin of 15.5%.
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Recent Events and Exports
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Recent Events
Footprint of Acquired Assets
Tyson de Mxico
Acquisition Price: US$400 mm
3 Vertically integrated processingfacilities
7 Distribution Centers
Tyson do Brasil
Acquisition Price: US$175 mm
3 Integrated Poultry Units
6 Distribution Centers
Cu Azul
Acquisition Price: R$246 mm
2 Integrated Poultry Units
3 Hatcheries
2 Feed mills
3 poultry units in Brazil and 3 in Mexico, in addition to 6distribution centers in Brazil and 7 in Mexico
Acquisition of Macedo (BR) and Del Dia (MEX) brandsTyson is the 3rdlargest poultry producer in Mexico, with ~10%of Market Share
Tyson is the 4thlargest poultry exports in Brazil, responsible for3.2% of exported volume in 2H14Cu Azul has 2 poultry units, including hatcheries, feed milland processing facilities
Distribution network for fresh poultry products in the State ofSo Paulo
Assets Description
Post 2Q14, JBS announced the acquisition of Tyson Foods, Inc. Poultry businesses in Brazil and Mexico
and the assets of Cu Azul in Brazil
These acquisitions are pending regulatory approval.
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1
JBS Consolidated Exports Breakdown in 2Q14 and 2Q13
Growth of 45% in 2Q14 exportscompared to 2Q13
Note 1. China and Hong Kong
Greater China18%
South America13%
Africa and Middle East12%
Mexico11%
Japan9%
E.U.
7%
Russia6%
South Korea4%
Canada3%
Others17%
2Q14US$4,305.1
million
Greater China 27.5%
Mexico 18.0%
Africa and Middle East10.1%
South America 5.9%
Russia 5.5%
E.U. 5.1%
South Korea 4.9%
Canada 4.2%
Japan 3.9%
Taiwan 2.2%
Others 12.7%
2Q13US$2,975.7
million
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1
CAPEX, Cash Generation
and Debt Profile
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1
Cash
Generation
CAPEX
Capex and Cash Generation
In 2Q14, total capital expenditure (CAPEX) was R$760.0 million, of which 40% in acquisitions,
expansion and facilities modernization and 60% in maintenance.
In addition, JBS recorded the payment of Massa Leve, which was made through the transfer of
shares held in treasury (R$203.5 million) and part in cash (R$55.1 million), in the statement of cash
flow in neteffect of working capital from acquired companies,which totaled R$266.6 million.
In 2Q14 the Company generated net cash flow from operations of R$147.3 million, due to an
increase in sales prices and an expansion of sales in general, besides the robust expansion of JBS
exports during the quarter.
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1
JBS S.A.63%
Subsidiaries37%
Debt Profile
USD77%
R$23%
Leverage EBITDA (R$ million)
JBS ended 2Q14 with leverage of 3.15x, compared to 3.26x in 1Q14.
In June 2014, JBS announced the issuance of Bonds in the amount of
US$750.0 million through its wholly-owned subsidiaries JBS USA, LLC
and JBS USA Finance, Inc. with maturity in 2024 and coupon of 5.875%
per annum.
This operation allowed JBS to reduce its financial costs and to extend
its debt profile.
Breakdown by Currency and Costs
Breakdown by Company
Leverage (Net Debt/EBITDA LTM)
11.25% per annum
5.67% per annum
3.28
4.033.70
3.26 3.15
0
500
1,000
1,500
2,000
2,500
3,000
3,5004,000
2Q13 3Q13 4Q13 1Q14 2Q14
D bt P fil
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1
-403
1,952
4,713
1,365
4,723
52
4,749
2,509
5,054
Short term netof cash
2015 2016 2017 2018 2019 2020 2021 After 2021
The Company ended the quarter with R$10,297.7 million
in cash, equivalent to approximately 104% of its short-
term debt.
JBS USA has US$1.27 billion fully available under
revolving credit facilities which, if added to the current
cash position, represents 133% of short term debt.
The percentage of short term debt (ST) in relation to total
debt dropped to 28% in 2Q14.
Debt Profile
Short term Long termDebt maturity (R$ million)
28%
29%
29%
35%
35%
72%
71%
71%
65%
65%
2Q14
1Q14
4Q13
3Q13
2Q13
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1
JBS Foods
JBS Foods
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2
Europe29%
Asia/Oceania24%
Africa and MiddleEast24%
Americas21%
Others2%
JBS Foods
Footprint 2Q14 Revenue Breakdown
Exports by Region
Main Brands
Products
Overview
Domestic46%
Exports54%
AC
AM
RR
RO
PA
AP
MT
MS
GO
TO
MA
PI
CE
RN
PBPEALSE
BA
MGES
RJSP
PR
RS
SC
Production facilities
JBS Foods 8%% NR JBS S.A.
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2
2.9 2.8 3.1
4Q13 1Q14 2Q14
JBS Foods
Net Revenue (R$ billion)
EBITDA (R$ million)
6.7%
EBITDA Margin (%)
11%
24%
40%
8%
18%
Net revenue of R$3,084.5 million in the quarter.
Improvement in sales volumes in both domestic and export markets.
Increase in prices in the domestic market, thanks to brands andcategories repositioning efforts.
Increase of 11.0% in pork export prices.
EBITDA reached R$440.4 million, with an EBITDA margin of 14.3%:
Relevant improvement in yields and productivity gains, in addition tocost reduction in the processing facilities.
Redesign and rationalization of the logistics network, which permittedcost reductions and increase in volume delivered.
Renewed go-to-market strategy, which provided efficiency gains inthe sales channels.
Increase in margins from prepared and convenient products
Increased access to customers abroad through synergies capturedand know-how already existing at JBS Group.
227.3379.8 440.4
7.9%
13.7% 14.3%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
4Q13 1Q14 2Q14
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2
JBS Mercosul
JBS Mercosul
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2
Domestic53%
Exports47%
JBS Mercosul
Beef facilities
Feedlots
Distribution Centers
Hides facilities
Main Brands
New Products in Brazil
Africa and MiddleEast11%
Asia/Oceania36%
Europe9%
South America34%
North and CentralAmericas
3%
Others7%
Footprint 2Q14 Revenue Breakdown
Overview
Exports by Region
JBS Mercosul 8%% NR JBS S.A.
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2
5.4
6.2 6.35.7
6.3
2Q13 3Q13 4Q13 1Q14 2Q14
JBS Mercosul
Net Revenue (R$ billion)
EBITDA (R$ million)
15.8%
EBITDA Margin (%)
10%
22%
40% 18%
Note 1. Includes JBS Aves
Net revenue of R$6,291.4 million in 2Q14, 15.8% higher than 2Q13:
Compared to 1Q14, net revenue increased 9.9%.
Increase of 21.9% in beef exports.
EBITDA totaled R$634.3 million, with EBITDA margin of 10.1%:
Increase in raw material prices, partially offset by an increase in salesprices.
Operations in Paraguay and Uruguay presented an increase inexports average price, which contributed to the increase in sales in
addition to fixed costs dilution. In Brazil, the Company foresees an increase in sales volume to the
international market and an improvement in sales in the domesticmarket as a result of marketing investments to promote the Friboibrand.
543.5687.5 692.4
596.1 634.3
10.0% 11.1% 11.0% 10.4% 10.1%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
2Q13 3Q13 4Q13 1Q14 2Q14
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2
JBS USA Beef
JBS USA Beef (including Australia and Canada)
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2
Domestic
72%
Exports28%
JBS USA Beef (including Australia and Canada)
Africa and Middle
East4%
Asia/Oceania68%
Europe2%
South America2%
North and CentralAmericas
14%
Others10%
Main Brands
Footprint 2Q14 Revenue Breakdown
Overview
Exports by Region
Production facilities and DCs
Notae1. Distribution Centers in Australia
JBS USA Beef (including Australia and Canada)% NR JBS S.A.
8%
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2
4.8 4.7 4.8 4.5
5.3
2Q13 3Q13 4Q13 1Q14 2Q14
JBS USA Beef (including Australia and Canada)
Net Revenue (US$ billion)
EBITDA (US$ million)
10.9%
EBITDA Margin (%)
Net revenue of US$5,331.4 million, an increase of 10.9% compared
to 2Q13: Increase in sales volume in both domestic and export markets.
Increase in prices in domestic market.
Compared with 1Q14, net revenue posted an increase of 17.9%, dueto higher seasonal demand in the period and an increase in salesprices.
EBITDA was US$108.6 million, with an EBITDA margin of 2.0%:
The reduction in beef supply combined with an increased demandcontributed to the increase in beef prices and partially offset theincrease in cattle prices during the period.
Compared with 1Q14, the improved EBITDA margin is due to higherbeef prices and strong demand seasonally.
Export growth supported by strong sales to Asia.
161.7125.3 113.9
-22.5
108.6
3.4% 2.7% 2.4%-0.5%
2.0%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
70.0
170.0
270.0
370.0
470.0
570.0
670.0
2Q13 3Q13 4Q13 1Q14 2Q14
10%
24%
42% 18%
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2
JBS USA Pork
JBS USA Pork
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2
Domestic
85%
Exports15%
Products
Processing Facilities
Case Ready
Main Brands
Swift Premium
Dry Rubbed Ribs
Swift Premium Dry
Rubbed Loin Filet
Swift Premium
Dry Rubbed Boneless Backrib
Swift Premium
Saddle Pack Boneless
Pork Chops
Swift Premium
Ground Pork
Asia/Oceania59%
Europe1%
South America1%
North and Central
Americas39%
Footprint 2Q14 Revenue Breakdown
Overview
Exports by Region
JBS USA Pork% NR JBS S.A.
8%
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3
868.5 903.3 904.9 896.91,028.3
2Q13 3Q13 4Q13 1Q14 2Q14
Net Revenue (US$ million)
EBITDA (US$ million)
18.4%
EBITDA Margin (%)
Net revenue of US$1,028.3 million, an increase of 18.4% compared
to 2Q13: Increase of 24.3% in sales prices in the domestic market and an
increase of 16.7% in export prices.
Compared with 2Q14, net revenue growth was 14.7%.
EBITDA of US$113.8 million, with an EBITDA margin of 11.1%:
In comparison with 2Q13, EBITDA grew 124.3%.
Hog supply remained tight and, combined with a strong demanddomestically and in the main consumer markets such as Hong Kong,Japan and South Korea, contributed to a better pricing of pork in the
US.
50.7 43.886.3 82.9
113.8
5.8% 4.8%
9.5% 9.2%11.1%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
20.0
70.0
120.0
170.0
220.0
270.0
320.0
370.0
2Q13 3Q13 4Q13 1Q14 2Q14
10%
24%
40% 18%
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3
JBS USA Chicken
(Pilgrims Pride Corporation)
JBS USA Chicken (Pilgrims Pride Corporation - PPC)
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3
Africa and MiddleEast7%
Asia/Oceania11%
North and CentralAmericas
80%
Others2%
Domestic
80%
Exports9%
Mexico11%
Main Brands Products
Other products: boneless/skinless, wings, breast, whole birds, breaded,marinated, strips, cooked, par-fried and others.
Footprint 2Q14 Revenue Breakdown
Overview
Exports by Region
Production Facilities
JBS USA Chicken (Pilgrims Pride Corporation - PPC)% NR JBS S.A.
40%
8%
17%
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3
2.2 2.1 2.0 2.0 2.2
2Q13 3Q13 4Q13 1Q14 2Q14
Net Revenue (US$ billion)
EBITDA (US$ million)
0.1%
EBITDA Margin (%)
Net revenue of US$2,186.8 million in 2Q14, stable compared to
2Q13: Increase in sales volume, partially offset by a decrease in sales price
both in the US and Mexico, due to a slightly change in sales mix.
Compared with 1Q14, PPC revenue grew by 8.4%, thanks to anincrease in chicken prices in both domestic and export markets.
EBITDA was US$338.6 million, with an EBITDA margin of 15.5%:
Reduction of US$89.0 million in feed costs.
Reduction of US$6.4 million in labor costs.
Reduction of US$4.6 million in freight and warehousing costs in the
US. Improvements in costs and sales mix, all rooted on operational
excellence.
265.0226.1 197.2 205.2
338.6
12.1%10.6% 9.6% 10.2%
15.5%
-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%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
-30.0
70.0
170.0
270.0
370.0
470.0
570.0
670.0
2Q13 3Q13 4Q13 1Q14 2Q14
10%
24%
40% 17%
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3
Sustainability and
Social Responsibility
Projects and Awards in Sustainability
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3
JBSTraceability System
To ensure the responsible origin of its raw
material, JBS has been developing a system
to monitor its cattle suppliers located in the
Amazon biome which is based on satellite
images, geospatial data of farms and official
information in order to analyze more than
70,000 cattle suppliers located in the country
since 2010.
The total area covered by the JBS
traceability system reaches 87 million
hectares (870 thousand Km).
In 2013, JBS was recognized byMcDonalds and KFC for adopting thebest practices in production processes
JBS received an international sustainabilityaward by the US restaurant chain KFC.The award is given to suppliers worldwidethat adopt innovative sustainability projects
at their production facilities.
From McDonalds,JBS received the Best ofSustainable Supply award in 2014,regarding investments in water efficiencyand waste as an energy source.
Evolution of JBS Annual andSustainability Report in GRI standardsfrom level C (2012) to level B (2013)Partnership between JBS and the
Brazilian NGO Instituto Centro de Vida(ICV) to promote sustainable cattleraising in the Amazon biome.
This project started in 2012. As a result it
was possible to observe an increase inproduction efficiency in the pilot area, whichincreased from 1 to 3 animals per hectare,without the need to convert new areas offorest into pasture to increase production.
In 2014, JBS scaled up the project to covera larger number of farms, as well assupporting the ICV in the training ofprofessionals who can replicate the modelto other farms in the Amazon region.
Stakeholders
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JBS actively participates in
the main discussion
forums onsustainable
livestock
Stakeholdersengagement
JBS received top marks in 7 units of leather forenvironmental and sustainability practices in theproduction process by the international organizationLeather Working Group (LWG). Totaling 7 unitsreceived gold medal and 2 Silver, all with "A" gradeon traceability.
Germinare School
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Germinare School is a social initiative of the Germinare Institute(JBS) which looks at Education as the principal instrument totransform society.
Laboratory
Social
GERMINARE SCHOOL
Purpose: to prepare well-educated and well-rounded citizens with abroad cultural repertoire, sound ethical values and a positiveattitude toward life and society.
Number of students: 450 (2013)Capacity of 630 students.
Area: 6,000 m2Sport complex, swimming pool, computer lab and chemistry lab.
Amount invested: R$15 million
Selection process: tests and group dynamics.
Top Brazilian professors.
Started in 2010.
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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,
profitabilityfor our shareholders and the opportunity of abetter future to all our employees.