JBS N.V.

Good morning and welcome to JBS second quarter of 2025 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference is being recorded. Any statements eventually made during this conference call in connection with the company business outlook, projections, operating and financial targets and potential growth should be understood as merely forecasts based on the company's management expectations in relation to the future of JBS. Such expectations are highly dependent on market conditions, on Brazil's overall economic performance, and on industry and international market behavior, and therefore are subject to change. Our president with us today, Gilberto Tomasoni, Global CEO of JPS, Guilherme Cavalcanti, Global CFO of JBS, Wesley Batista Filho, CEO of JBS USA, and Cristiane Assis, Investor Relations Director. Now, I'll turn the conference over to Gilberto Tomazoni, Global CEO of JBS. Mr. Tomazoni, you may begin your presentation.

Good morning, everyone. Thank you for joining us today for our earning call. The second quarter of 2025 marked the beginning of a new phase for JBS. With the launch of our shares on the New York Stock Exchange, we completed our dual listing. This is a strategic milestone that enhances our global visibility, broadens our investor base, and reinforces JBS's position as one of the world's leading food companies. I want to emphasize that this starts a new chapter of our trajectory. We see a clear path to long-term value creation, anchored in operational excellence, diversification, innovation, value-added products, and strong brands. It's worth highlighting that over the coming years, we will keep investing consistently to expand our platform and position the company to meet the global demand for protein. We truly believe, and GBS is well-positioned for the future, We are delivering our long-term strategy with discipline and consistency, and that gives us confidence in the path ahead. At the same time, we will stay fully committed to our mission of returning value to our shareholders. Evidence is by 1.2 billion in dividends. we paid this quarter, as well as today announcement of 400 million share repurchasing program. Let's take a closer look at the some strategic movement we have made this year. During the first half of 2025, we have made a several important investment in the United States. In May, we disclosed our plan to build a new fresh sausage facility in Iowa. totaling 135 million U.S. dollars. This came in addition to 200 million U.S. dollars allocated to upgrading our beer plants in Texas and Colorado, and 400 million for a new preparer food facility that Pilgrim's Building in Georgia. Pilgrim's Building in Georgia. Yesterday, we also announced an afforded 100 million US dollar investment to acquire an expand your facility, which will be transformers in the in larger ready to eat bacon and sausage plant in in our US operation. I want to stress here that all these projects are designed to support the growth of JBS' prepared food portfolio, helping us to meet the growth demand for customers and consumers for these products. Even amid a challenging macroeconomic environment and with ongoing pressure in some business units, our second quarter Performance, once again, reflected the resilience of our diversified global platform. Net sales were record, reaching 21 billion U.S. dollars, a 9% increase year over year. Adjusted VDA was 1.8 billion, and with a margin of 8.4%. Faulty operations, once again, stood out as a key highlight. Pilgrims achieved the highest EBITDA in its history, supported by lower grain costs and resilient U.S. demand. Results also reflect continuous growth in the prepared food portfolio, a strong relationship with the key customers, and a solid performance across fresh and crazy red segments in the U.S. Mexico and Europe delivered a strong result as well. I would like to particularly highlight that Seara delivered another quarter of consistent results. Despite the outbreak of avian influenza in Brazil, the business reached an AVIDA margin of 18.1%, driven by disciplined commercial strategy, product mix management, and a strong focus on innovation. The results highlight the robustness of our biosecurity protocols and the maturity of Brazilian sanitary systems. It is important to note that SWIFT in technical response in Brazil's sanitary authorities, together with the strict industry-wide control, ensured that only one isolated case was confirmed in the country at commercial farms. In the United States, our beef business continued to face a pressure from an unfavorable cattle cycle, as the spread between the livestock cost and beef price narrowed. The pork business was affected on a short-term basis by the trade restriction, and we expect the performance to return to a normal level over the next few quarters. Diversification remained one of our greatest threats. In Brazil, Friboi delivered strong results, driven by a new export approval and productivity gains. In Australia, we continue to benefit a favorable livestock cycle, with export growth and operational improvements, contributing to another quarter of consistent performance. We also reaffirmed our commitment to financial discipline, The quarter end with a net average 2.27 times in line with our long-term target in reflecting the stress of our capital structure and our financial management. With a strong, more balanced, and more innovative global platform, JBS is well prepared for the next phase of global opportunities. I want to conclude by saying that we remain confident in our teaming and ability to create long-term value. Thank you again for joining us today. I will now turn the call over to Guilherme, who will walk through the financial results and more details. Guilherme, please, go ahead.

Thank you, Tomasani. Let's now move on to the operational and financial highlights of the second quarter of 2025, starting on slide 13, please. Net revenue for the second quarter of 2025 reached a record of $21 billion. Adjusted EBITDA totaled $1.8 billion, which represents a margin of 8.4% in the quarter, while adjusted operating income was $1.2 billion, with a margin of 5.7%. Net profit was $528 million in the quarter, and earnings per share was $0.48 per share. Excluding the non-recurring item, adjusted net income would be $583 million, and the ETS would be 53 cents. Finally, the return on equity was 25.7%, and the return on invested capital was 17%. Although the difference in EBITDA between the second quarter 2024 and the second quarter 2025 was only $141 million, the free cash flow difference reached approximately $1.1 billion due to the mainly following factors. The difference in EBITDA, as mentioned above, $104 million of higher capital expenditures, $242 million increase in finished goods inventories in the US driven by higher prices. This cash is expected to return to the operating results over the coming quarters as sales are made. $250 million due to livestock hedging. Future purchases from suppliers such as fig lots at fixed prices are hedged through future contracts, exposing us to the spot price and thus matching with the mid-sales. Due to the sharp rise in the cattle and hog prices, there was a negative cash impact on operating results due to the hedge. This cash is expected to return in the following quarter as the physical purchases are settled. $122 million increase in legal settlements. $257 million in higher tax payments, mainly due to improved results from PPC and Australia in recent quarters. A $51 million impact on Seattle's chicken inventory caused by the market closure due to a single... it should return to around $4.5 billion, based on the following estimated breakdowns, which may change over time due to the variables beyond our control.