JBS N.V.

Good morning and welcome to JBS fourth quarter in the year of 2025 results conference call. At this time, all participants are in listen-only mode. Later, we will conduct a questions and answers 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 begin your presentation.

Good morning, everyone. Thank you for joining us today. We close 2025 with a consistent performance and a continued progress in building a stronger, more efficient company. In the fourth quarter, we recorded a revenue of $23 billion with an EBITDA margin of 17.4%. For the full year, revenue reached $86 billion, a company record. with a consolidated EBITDA margin of 7.9%. This scale and the diversity of our multi-protein and multi-geography platform remain our greatest strength, allowing JBS to navigate industry cycles or any disruption while capturing a structural growth in protein demand. In both the fourth quarter and the full year, JBS delivered record sales with positive consolidated results, reflecting the resiliency of our global platform. Net income total, $515 million in the quarter and $2 billion for the year, represented Year-over-year growth of 15%. Earnings per share of $1.89 per year. Free cash flow was $990 million in the quarter and $400 million for the year. Return on equity reached 25%. And the return on investment capital was 17%. Of our level ratio, at the end of the fourth quarter was 2.39 times in line with our long-term target. We also maintain a very strong debit profile with an average debt maturity of approximately 15 years and average cost of the debt of around 5.7%. No significant maturity in the short term. These strong results reflect our consistent performance in a year, marked by a challenging environment in some global protein markets. In the United States, the cattle cycle remains under pressure, with a limited supply and high costs. This is expected to continue in the coming quarters. Despite this environment in US beef sector, our global results remain positive, reflecting the resilience of our diversifying platforms. Australia was one of the highlight of the year, with a strong EBITDA growth and margin expansion, as well as a top line growth of 30% year over year in the fourth quarter. Our Australian business benefit from the current imbalance between global supply and demand of beef. Combined with the strong execution and support, solid profitability and reinforce the role of region in balancing our global results. In Brazil, the beef business operate within historical margin range, supported by strong export and steady domestic demand. The fourth quarter was particularly strong with the top line sales growing 26% year over year. At the same time, livestock productivity continued to improve. Country recorded highest beef processing volume in its history at around 42 million heads. This reflects its total gain in production and reinforces Brazil's growing role in the global supply. In this context, Friboi delivers solid results with growth in both export and domestic sales, volume increase in key international markets, including Mexico, Europe, and United States. while the business also strengthen its presence in Brazil. Program success at Friboi Plus continues to deepen clients' relationship and support growth in the domestic market. At Seara, we continue to advance our strategy in strengthening brands and expanding high-value-added products. In recent years, Seara has expanded its portfolio, entering new categories, and is threatened in connection with the customers. The business is now one of its strong moment in brand perception, supported by innovation, execution, and more differentiated product mix. In the United States, our chicken business continue to benefit from the strong demand in both retails and food service. Pilgrims delivered a volume growth above the industry average in segments such as case-ready and small birds. The big birds segment also improved performance through better yields, mix, and cost efficiency. Brand diversification continues to progress. And Just Buyer surpassed $1 billion in retail sales. reflecting the strength of our brand strategy and the significant opportunity we see to capture further growth across our modern high-value prepared food portfolio. In U.S. pork business, performance remains stable, and the business closed the year with solid margins, supported by disciplined operation and balanced supply and demand. Also in 2025, we completed the dual listing process, a milestone that the company history and became a nice listed company. It's threatened our capital market position. Since then, we have seen a clear improvement in how the market value the company. Our trading multiply and expanded, reflecting greater visibility and investor confidence although we still trade at a discount to our global peers. Liquidity also has increased significantly with average trading volume up approximately three times compared to the pre-listing levels. At the same times, our shareholder base has become more global and diversified. US-based investors now represent nearly 70% of the company's free flow. Overall, this change reinforced our position in the global capital market and supported the next phase of growth. Global protein consumption continues to grow, supported by demographic health awareness and demand for balanced diets. JBS is well positioned to meet this demand across markets and channels. Our strategy remains clear. We will continue to strengthen our brand, expand our value-added product portfolio, and develop solutions that make protein more accessible and more convenient in everyday life. Thank you again for joining us today. And now I will turn the call over to Guilherme. We'll walk through our financial results in more detail.

Thank you so much. to the operational and financial highlights of the fourth quarter and fiscal year of 2025. Net sales reached a record of $23 billion in the quarter and $86 billion in 2025. Adjustability in IFRS, totally $1.7 billion, which represents a margin of 7.4% in the quarter and $6.8 billion in 2025 with a margin of 7.9%. Adjustability in U.S. cap totaled $1.5 billion, which represents a margin of 6.5% in the quarter and $5.8 billion in 2025, with a margin of 6.7%. Adjusted operating income was $1.1 billion with a margin of 4.7% in IFRS and 4.8% in U.S. GAAP in the fourth quarter. In 2025, adjusted operating income was $4.5 billion in IFRS with a margin of 5.2% and $4.4 billion in U.S. GAAP with a margin of 5.1%. Net income was $415 million in the quarter and an earnings per share of 39 cents. For the year, net income was $2 billion and earnings per share of $1.89. Excluding the non-recurring items, adjusted net income would be $500 million and earnings per share of 47 cents in the quarter. And for 2025, $2.2 billion with an earnings per share of $2.1. Finally, return on equity was 25%, and return on invested capital was 17%. Pre-cash flow in fourth quarter 2025 reached $990 million, compared to $906 million in the fourth quarter 2024. The main positive drivers were related to the deferred livestock, particularly in the US, and inventories reflecting strong revenue growth during the period. Despite an $850 million in working capital consumption in 2025, the cash conversion cycle remained resilient and in line with prior year's levels. For the full year, free cash flow totaled $400 million. When we visited free cash flow breakeven IFRS EBITDA exercise for 2025, the initial estimate EBITDA to a breakeven level was around $6 billion. However, considering the actual results, the EBITDA breakeven would be approximately $300 million lower. The main difference came from working capital, as mentioned earlier, mainly reflecting the deferred livestock effect and the decrease in inventories. On the other hand, CAPEX came in about $100 million above estimates, as we executed $1.1 billion in expansion CAPEX during the period. We also saw a higher number of biological assets, largely driven by the increasing livestock volumes and prices, while the remaining items came in broadly in line with our estimates. Finally, the higher cash tax paid in 2025 were mainly related to the tax payments associated with the results of 2024. For 2026, and for the purpose of the EBITDA cash flow break-even exercise, we can assume a capital expenditures of $2.4 billion of which $1.3 billion is for expansion and $1.1 billion is for maintenance. Interest expenses of $1.15 billion and leasing expenses of $500 million and a consolidated effective tax rate of 25%. Just to highlight, it is still too early to estimate the variation in working capital and biological assets, as there are many factors beyond our control, such as grain and livestock prices. However, if you consider the same amount of working capital consumption in biological assets of 2025, a bid-back cash flow breakeven would be $5.7 billion, in line with 2025 numbers mentioned above. On page 24, we present a historical free cash flow breakdown to help analyst forecasts. Our leverage ended the year at 2.39 times in line with our long-term target of keeping that debt to be that between two and three times. In 2025, we also strengthen our balance sheet by extending our debt maturity profile, reaching an average debt term of approximately 15 years and an average cost of 5.7%. We have no significant debt maturities until 2031. The coupons of our debt are below treasury until and including 2032 maturities. with 32% of our gross debt maturing beyond 2052, and approximately 90% of the total debt is at fixed rates. It's worth mentioning that despite the 8% increase in net debt in the last three years, net financial expenses remained at the $1.1 billion per year. Our $3.5 billion in revolving credit lines and $4.8 billion in available cash provides us the flexibility to continue executing our expansion capex, value creation projects, and shareholder returns while maintaining a health and robust balance sheet. For this reason, and given our strong cash position and leverage, we announced last night the payment of $1 per share in dividends to be paid on June 17th. With that in mind, I would like to turn the operation for the question and answer session.