JBS N.V.

Good morning and welcome to JBS's third quarter of 2025 results conference call. At this time, all participants are in 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 the industry and market conditions and therefore are subject to change. Are present with us today, Gilberto Tamazoni, Global CEO of JBS, Guilherme Cavalcanti, Global CFO of JBS, Wesley Batista Filho, CEO of JBS USA, and Christian Aziz, Investor Relations Director. Now I'll turn the conference over to Gilberto Tamazoni, Global CEO of JBS. Mr. Tamazoni, you may be beginning your presentation.

Good morning, everyone. Thank you for joining us today. The third quarter of 2025, once again, demonstrated the strength and consistency of JBS, a global multi-protein platform. And more important, how we operate with discipline, agility, and resilience. We achieved a record net sales, which grew across all business units. This performance reinforced the balance and the scales of our operation and showed our ability to manage the platform practically, mitigating the impact of local market cycles. Net income reached $581 million, and the return on equity over the last 12 months was 23.7%, reflecting solid, sustainable performance. We continue to navigate a challenging cattle cycle in the United States, marked by historical high price and tight supply. Even in this environment, JBS Beef North America delivered a record debt revenue supported by resilience domestic demand. While cattle availability remained limited, consumption held steady and the team continues to execute with discipline. Although cut-out value remained elevated, they were not sufficient to offset higher cattle costs. Australia was a clear highlight. Profitability stays strong, supported by improved cattle availability and healthy global demand. The region continues to play an important role in diversifying our geographic exposure and balancing results across protein. In Brazil, Friboi delivered another consistent quarter with solid performance in both export and domestic sales. The team is threatened relationship with the key customer through our value creation approach and remain focused in operational excellence and disciplined execution. Seara also posted another quarter of consistent results in a period is still impacted by restriction to export to Europe and China, which have recently been relief it. The business maintained healthy margins, driven by a disciplined commercial strategy, effective mix management, and continuous innovation in its product portfolio. Initiatives such as the launch of high-protein ready meals, the development of a dedicated air fry portfolio, and a partnership that brings the brand closer to the consumer including with Netflix, illustrate our going commitment to innovation and value creation. In the United States, our chicken and pork business also remain resilient. Pilgrim price continues to grow, supported by a diversified portfolio and ongoing efficient gain. The prepared food segment stood out, with sales raising more than 25% in the U.S., while operations in Europe and Mexico also outperformed their market. In pork, lower grain costs and steady demand created a positive environment, though supplying constraints continued to limit overall market growth. These results show how we operate in our global platform, managing scales, efficiency, sharing knowledge across the region, and making quick, informative decisions to protect performance. We continue to invest in innovation and value-added products as part of our long-term strategy. It's threatening brands and expanding higher margin category remain central to sustainable growth. We end the period with a leverage of 2.39 times, fully alignment with our long-term targets. Overall, the company remains stable and well positioned. Global protein demand continues to rise. And JBS is prepared to capture this growth with a balanced portfolio, solid execution, and a long-term perspective. Thank you again for joining us today. I will now turn the call over to Guilherme, who will walk you through the financial results and more details.

Thank you, Tomazzoni. Let's now move on to the operational and financial highlights of the third quarter of 2025. Net sales for third quarter of 2025 reached a record of 22.6 billion. Adjusted bid die in IFRS totaled $1.8 billion, which represents a margin of 8.1% in the quarter. Adjusted bid die in US GAAP comparable totaled $1.6 billion, which represents a margin of 7.2% in the quarter. Adjusted operating income was $1.3 billion with a margin of 5.5% in IFRS and 5.6% in U.S. GAAP comparable. Net income was $581 million in the quarter and earnings per share of 0.52 cents. Excluding non-recurring items, adjusted net income would be $602 million and earnings per share of 54 cents per share. Finally, the return on equity was 24%, and the return on invested capital was 17%. The free cash flow of the third quarter of 2025 was $383 million, representing a difference of $612 million compared to the third quarter of 2024, mainly due to the following factors. Adjusted EBITDA decreased $319 million, but excluding non-cash items, we have a reduction of $230 million, driven by the impacts of the beef cycle in the U.S., avian flu in Ceará, and higher cattle costs in JBS Brazil. An increase of $226 million in capital expenditures, mainly growth capex. An increase of $258 million in working capital, mainly reflecting higher revenues and costs resulting from the increasing livestock prices. Our cash conversion cycles in days remained stable in relation to the previous quarter. not considering a guidance, but simply updating the cash flow breakeven exercise, it is expected to increase to $6 billion in 2025 and to $5 billion in 2026, driven by capital expenditures, $2 billion in 2025 and $2 billion in 2026, already including maintenance capex. Although 2026 budget is still to be approved. Working capital expected to increase to $1.3 billion in 2025 and $700 million in 2026. that the 2025 increase in nominal terms is related to higher prices, higher sales volumes, increased cost of livestock, and fulfilling the pipeline of organic expansions. It is worth mentioning that 2026 working capital depends on variables not in controls of the company, like grains and livestock prices. Legal settlements of $400 million in 2025. Biological assets of $650 million in both 2025 and 2026. Interest expenses of $1.15 billion in 2025 and $1.15 billion in 2026. Leasing expenses of $500 million for 2025 and 2026. Last week, we completed another debt issuance in Brazilian capital markets. The total amount of agribusiness receivable certificate was approximately $570 million, with two-thirds placed in a 40-year tranche, the longest ever completed in the Brazilian capital markets. As a result, our pro forma average debt maturity reached 15.4 years with an average cost of 5.6% per year. Leverage increases to 2.39 times in the third quarter against the second quarter of 2025, primarily due to $319 million decline in the last 12 months of EBITDA and the payment of $362 million in share buyback. In this regard, we announced the completion of a $600 million share buyback program. We believe this represents an efficient use of cash, even the current valuation multiples relative to our global peers and the leverage at comfortable levels. Even with the share buyback program completed and the $1.2 billion dividends paid and the approximately expansion capex of $1 billion, we expect to end the year with leverage below 2.5 times. Our $3.4 billion revolving credit lines and $4 billion available cash, combined with the expected cash generation in the coming quarter, provide us with the flexibility to continue executing our expansion capex and value creation projects while maintaining a healthy and robust balance sheet. With that in mind, I would like to open to question and answer session.