21
1Q14 Results Presentation May 15, 2014

1Q14 Presentation

  • Upload
    jbs-ri

  • View
    227

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 1Q14 Presentation

1Q14 Results Presentation

May 15, 2014

Page 2: 1Q14 Presentation

2

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

JBS’ management concerning the future of the business and its continued access to capital

to fund the Company’s 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 factors

and risks disclosed in JBS’ filed disclosure documents and are, therefore, subject to change

without prior notice.

Disclaimer

Page 3: 1Q14 Presentation

3

Summary of 1Q14 Results

Net revenue of R$26.4 billion, an increase of R$6.9 billion, or 35.3% higher than 1Q13.

Gross profit of R$3,421.3 million, expansion of R$1.4 billion, or 67.9% higher than 1Q13.

Consolidated EBITDA of R$1,749.7 million, an increase of 99.0% over 1Q13. EBITDA margin

was 6.6%.

Net income in 1Q14 was R$70.0 million, which corresponds to R$24.40 per thousand shares.

This result was negatively impacted by carry costs and the income taxes in the period which

amounted to R$139.7 million.

The consolidated 1Q14 exports grew 21% compared 1Q13, reaching US$ 3.1 billion.

JBS ended 1Q14 with a leverage of 3.26x, compared to 3.70x in 4Q13.

Page 4: 1Q14 Presentation

4

Summary of 1Q14 Results

JBS Foods posted net revenue of R$2,780.0 million and EBITDA of R$379.8 with EBITDA

margin of 13.7%.

JBS Mercosul posted net revenue of R$5,725.3 million in 1Q14, 15.2% higher than 1Q13 and

EBITDA of R$596.1 million, with EBITDA margin of 10.4%.

JBS USA Chicken (PPC) reported net revenue of US$ 2,018.1 million, stable compared to

1Q13 and EBITDA of US$ 205.2 million, with a margin of 9.6%.

Net Revenue of JBS USA Pork totaled US$ 896.9 million, 6.5% higher than 1Q13, and EBITDA

of US$ 82.9 million, with EBITDA margin of 9.6%.

JBS USA Beef posted net revenue of US$ 4,520.7 million, 4.8% higher than 1Q13, and a

negative EBITDA of US$ 22.5 million, with a EBITDA margin of -0.5%

Page 5: 1Q14 Presentation

5

Debt Profile, CAPEX and Cash Generation

Page 6: 1Q14 Presentation

6

Cash

Generation

The Company ended 1Q14 with net cash flow from operations of R$504.6 million, as a

result of the increase in the value of inventories in the US, due to the increase in average

prices of beef and pork products, offset by the increase in the purchase of cash cattle in

Brazil due to the volatility of market prices. There was no free cash flow generated in this

quarter due to the investments during the period as described in the CAPEX chapter.

CAPEX

In 1Q14, the total capital expenditure (CAPEX) in property, plant, and equipment was

R$711.1 million of which approximately 40% refers to the acquisitions of assets and

companies such as Frinal, biological asset complex in the state of Paraná, and a Kaiowa

production plant acquired at a judicial auction. Besides this, the recurring CAPEX,

representing about 60% of the total, were in the integration of the prepared foods

production platform as well as in the expansion of distribution in Brazil. In North America,

the investments were concentrated into the modernization of the industrial complex.

Capex and Cash Generation

Page 7: 1Q14 Presentation

7

JBS S.A. 63%

Subsidiárias 37%

Indebtedness

USD 76%

R$ 24%

3.40 3.28

4.03 3.70

3.26

0

500

1,000

1,500

2,000

2,500

3,000

1Q13 2Q13 3Q13 4Q13 1Q14

JBS ended 1Q14 with a leverage of 3.26x,

compared to 3.70x in 4Q13.

The reduction of leverage ratio reflects the

Company’s commitment to improve its

financial indicators, which tend to follow a

decreasing trend as JBS Foods results are

being incorporated.

Breakdown by Company and Costs

Breakdown by Currency & Average Cost

Leverage

Leverage EBITDA (R$ million)

Source: Company

11.38% per annum

5.78% per annum

Page 8: 1Q14 Presentation

8

The Company ended the quarter with R$8,696.4

million in cash, equivalent to approximately 93% of

its short-term debt.

Considering unencumbered credit lines with

immediate availability of US$1.55 billion at 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 remained in 29% in 1Q14.

Debt Profile

29%

29%

35%

35%

28%

71%

71%

65%

65%

72%

1Q14

4Q13

3Q13

2Q13

1Q13

Net Debt maturity (R$ million)

Short term Long term

*Net of cash

Source: Company

650

3,990 4,574

1,148

4,544

44

4,580

2,565

1,584

Short Term* 2015 2016 2017 2018 2019 2020 2021 over 2021

Page 9: 1Q14 Presentation

9

Business Units

Page 10: 1Q14 Presentation

10

JBS Mercosul

Net Revenue (R$ billion)

EBITDA (R$ million)

15.2%

5.0 5.4

6.2 6.3 5.7

1Q13 2Q13 3Q13 4Q13* 1Q14

Margem EBITDA (%)

10%

24%

40%

8%

18%

% JBS Revenue

Net Revenue of R$5.275,3 million in 1Q14, 15.2% higher

than 1Q13, where the results of JBS Poultry were

included

EBITDA totaled R$596.1 million in the quarter, an

expansion of 6.1% over 1Q13. EBITDA margin was 10.4%

in Mercosul.

561.7 543.5 687.5 692.4

596.1

11.3% 10.0% 11.1% 11.0% 10.4%

-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

1Q13 2Q13 3Q13 4Q13 1Q14 * **

* Includes JBS Poultry results

** Do not considers JBS Foods

Page 11: 1Q14 Presentation

11

JBS USA Chicken (Pilgrim’s Pride Corporation - “PPC”)

Net Revenue (US$ billion)

EBITDA (US$ million)

Margem EBITDA (%)

2.0 2.2 2.1 2.0 2.0

1Q13 2Q13 3Q13 4Q13 1Q14

-0.9%

117.7

265.0 226.1 197.2 205.2

5.8%

12.1% 10.6% 9.6% 10.2%

1Q13 2Q13 3Q13 4Q13 1Q14

10%

24%

40%

8%

18%

% JBS Revenue

Net Revenue of US$2,018.1 million, 0.9% inferior than

1Q13.

EBITDA in 1Q14 was US$205.2 million, an expansion of

74.3% in relation to 1Q13.

Page 12: 1Q14 Presentation

12

JBS USA Beef (including Australia and Canada)

Net Revenue (US$ billion)

EBITDA (US$ million)

4.3 4.8 4.7 4.8 4.5

1Q13 2Q13 3Q13 4Q13 1Q14

4.8%

-25.1

161.7 125.3 113.9

-22.5

-0.6%

3.4% 2.7% 2.4%

-0.5%

-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%

-30

70

170

270

370

470

1Q13 2Q13 3Q13 4Q13 1Q14

Margem EBITDA (%)

10%

24%

40%

8%

18%

% JBS Revenue

Net revenue was US$4,520.7 million, an increase of

4.8% compared to the same period in 2013.

EBITDA was negative US$22.5 million, with EBITDA

margin of -0.5%.

Volatility in cattle supply in the US, where the market

is experiencing a period a shortage, coupled with heifer

and cow retention.

Page 13: 1Q14 Presentation

13

JBS USA Pork

Net Revenue (US$ million)

EBITDA (US$ million)

Margem EBITDA (%)

842.0

868.5

903.3 904.9 896.9

1Q13 2Q13 3Q13 4Q13 1Q14

6.5%

46.8 50.7 43.8 86.3 82.9

5.6% 5.8% 4.8%

9.5% 9.2%

1Q13 2Q13 3Q13 4Q13 1Q14

10%

24%

40%

8%

18%

% JBS Revenue

Net Revenue totaled US$896.9 million, an increase of

6.5% compared to 1Q13.

EBITDA for 1Q14 was US$82.9 million, an increase of

77.2% compared to 1Q13.

Page 14: 1Q14 Presentation

14

JBS Foods

Net Revenue (R$ billion)

EBITDA (R$ million)

2.9 2.8

4Q13 1Q14

EBITDA Margin (%)

227.3

379.8

7.9% 13.7%

-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

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

4Q13 1Q14

-3.9% 10%

24%

40%

8%

18%

% JBS Revenue

Net Revenue of R$2,780.0 million, 3.9% lower than

4Q13, due to the seasonality.

EBITDA totaled R$379.8 million, an expansion of 67.1%

compared to 4Q13, with EBITDA margin of 13.7%.

.

Page 15: 1Q14 Presentation

15

JBS Foods is the branded convenience poultry and

pork business of JBS in Brazil

2nd largest meat based packaged food Company in

Latin America

2nd largest producer and exporter of poultry and pork

in Brazil

53 productive units, 12 distribution centers and

45,000 employees

Strong domestic and international presence with

high growth potential

Integrated platform with diversified product portfolio

Fully integrated pork and poultry business

JBS Foods at a Glance

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

Source: Company

Nota: 1 Pending regulatory approval

JBS

Foods 1

Page 16: 1Q14 Presentation

16

Industrial Capacity per Product Line

JBS Foods: Footprint

National footprint with a production capacity of 4.4 mm bird/day, 21,500 hogs/day and 76,000 tons of further

processed products / month

21,500 hogs / day

4.4 mm birds / day

76,000 tons of value added further processed

products / month

Source: Company

Wide National Distribution Platform

Distribution Centers (13)

Points of Sales (thousand) 74

1

14

12

42

6

Currently JBS Foods has a customer

base of 74 thousand clients in Brazil with

a real opportunity to duplicate this number

in the coming years.

Page 17: 1Q14 Presentation

17

Fre

sh

an

d C

hil

led

Pro

du

cts

Other Prepared

Products

Prepared Products

Commodity

Proteins Selected Products

Products Categories

Category

Source: Company

... globallly recognized brands

Outros

Poultry

Turkey

Pork

Pastas and Margarines

Branded

Margarine Lasagna Pasta Cheese

Bread Pizza French Fries

Meat balls Hamburguer Breaded

Chicken Stuffed Turkey Salami Mortadella Sausage

Chicken Breast Chicken Leg

quarter

Whole

Chicken

Flavored

Chicken Leg

quarter

Turkey Breast

Complete Products Portfolio

Page 18: 1Q14 Presentation

18

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

JBS Foods Brands Pre-Repositioning JBS Foods Brands Repositioning

Premium

Mainstream

Access /

Regional

Source: Company

Page 19: 1Q14 Presentation

19

Marketing Initiatives and New Products

Launched of 10 new innovative product s in the

company portfolio at the largest Retail event in

Brazil, APAS, reaffirming the commitment of Seara

brand to be recognized as the best buy because of

quality and convenient products.

Share growth in all categories audited by Nielsen.

Launched in February/14

• Initiative was well recalled by the public,

reaching 43% of the target public with only 3

days of running1

• 98% of the interviewed public view the

marketing campaign of Seara as excellent or

good, 95% with high credibility, there was no

negative assessment2

•Brand of greatest value growth in Brazil in

2013/20143

Source:

1- Instituto Quantas feb/2014

2 Instituto Quantas feb/2014

3- Brand Analytics/MillwardBrown Optimor

Page 20: 1Q14 Presentation

20

Management Initiatives to Improve Performance

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

Main Initiatives ofJBS Foods Turnaround Value of Opportunities Identified in JBS Foods (R$ mm)

Total Value of Opportunities: R$1.2 billion

Livestock Price and Sales

Strategy

Industrial

R$287 mm R$207 mm R$472 mm

Finance and

Administration

Domestic and

International

Logistics

Non Core Supplies

R$118 mm R$30 mm R$87 mm

Built a team with industry experience and JBS culture Centralization of corporate operations at the headquarters of JBS in Sao Paulo Application of best practices in production using experience gained in

Pilgrim's Pride Efficiency gains and increased productivity at plant level Reformulation of product portfolio Reorganization of the logistics network

Renewed Strategy “go to market” Centralized pricing model with standard processes and focus on profitability Repositioning the brand portfolio with clear strategic positioning and

strengthening of priority brands Seara marketing campaign

Expansion of exports through the sales structure and know-how of JBS

Source: Company 1 Acquisition of Massa Leve subjected to approval

Page 21: 1Q14 Presentation

Mission

To be the best in what we set out to do, totally focused

on our business, ensuring the best products and services for our customers, solidity for our suppliers,

satisfactory profitability for our shareholders and the

certainty of a better future to all our employees.