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MESSAGES FROM
MANAGEMENT

A YEAR MARKED BY SIGNIFICANT PROGRESS IN IMPROVING
OPERATIONAL STRENGTHS AND PORTFOLIO DIVERSIFICATION
GRI G4-1

Our global production platform, unique in the market, combined with our relentless pursuit of operational excellence, permitted us to generate good results during 2015. It was a notable year for JBS as we evolved significantly in our strategy. We strengthened our operations in key food producing regions globally and diversified our portfolio, adding significantly more value to our products, under our reputable and wellknown brands.

Our consolidated sales reached R$163 billion in 2015, an expansion of 35% compared to 2014. In this period, 30% of our global sales were through exports, which added up to US$15.4 billion, with Asia and the Middle East as key markets. EBITDA was R$13.3 billion, an increase of 20% over 2014, with an EBITDA margin of 8.2%.

Net income for the year improved substantially and totaled R$4.6 billion, 128% higher than 2014, equivalent to R$1.60 EPS. On the financial side, our discipline contributed to elevate JBS credit ratings at all three main rating agencies during the year. We remain dedicated to improve our financial metrics, providing solidity and consistency to our business.

Another highlight during the year was the operating cash generation, totaling R$21.2 billion. This allowed us to grow and conclude strategic acquisitions. Besides expansion in our platform in Brazil, we acquired Primo Group in Australia in the first semester, a leading company in the prepared food segment, and owner of well-regarded brands with great acceptance by the market. We expanded our operations in Mexico and concluded the acquisition of Moy Park, a company that is totally aligned with our global strategy. Moy Park is recognized for the high quality of its products and its innovative food production base. At the end of October, we increased our pork operations in the US with the acquisition of strategic and well-located assets that enjoy the added advantage of having capacity to produce value added products.

We announced throughout 2015 and early 2016 the strengthening of our global leadership team, appointing leaders with profound knowledge in our sector to contribute to the sustainable growth of JBS. We also communicated a new regional management structure, which consists of four platforms: South America, North America, Europe and Asia-Pacific.

In 2015, we reinforced and diversified our global food production platform, with access to raw material in several regions and different proteins. This footprint protects us from sanitary and commercial barriers, while permitting us to reach 100% of the consumer markets worldwide. This diversification in proteins and geography enables us to mitigate the volatility associated with the commodity cycles and to deliver more solid and consistent results.

We are investing in research and innovation to add value to our products in order to provide more convenient products for our clients and consumers. We are committed to understanding the behavior of consumers so we can innovate and customize more products with health and wellness in mind. Additionally, we continue investing in our key brands, such as Seara, Friboi, Swift, Primo, Hans, Beehive, Moy Park, Pilgrim’s, Pierce, and Del Dia among others.

Analyzing the economic scenario, we recognize global population growth as a key factor that will substantially increase the demand for food and our products. Moreover, the change in consumption habits, combined with better income distribution in several countries has generated a pursuit for healthier diets, with higher consumption of more nutritious food and protein-based products.

We are confident in our global food production platform and in our highly qualified team to lead JBS in our strategy. We will remain focused on operational excellence and food safety, while we base our business in the highest quality standards and service level to meet and exceed our customer’s and consumer’s requirements.

I take this opportunity to thank all of our partners, customers, suppliers, investors and stakeholders for their support and trust in JBS. I would like to express my gratitude to each one of our more than 230 thousand team members, ambassadors of our culture and our values, who make a daily contribution towards the development and sustainable growth of JBS.

Wesley Batista
Global CEO of JBS