JBS N.V.

Good morning and welcome to JBS' first quarter of 2026 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 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 marketing conditions and therefore are subject to change. Our president with us today, Gilberto Tamazoni, Global CEO of JBS, Xavier Michele Conti, Global Finio, CEO of JBS USA, and Christian Aziz, Investor Relations Director. Now, I'll turn the conference over to Gilberto Zamazzoni, Global CEO of JBS. Mr. Zamazzoni, you may begin your presentation. Good morning, everyone.

Thank you for joining us today. The first quarter of 2026 was a challenging period for JBS. shaped by market volatility, seasonality, operational disruption, and change in a global trade flow. This is consistent with what we have been saying. We understand the nature of our business and the cycles we operate in, and we manage the company with that in mind. In the environment, we remain focused on what we can control. Operational excellence, cost, discipline, agility, and long-term value creation. JDS delivery net growth, sales growth of 11%, reaching $21 billion, U.S. dollars, and is a record for the first quarter. Net income was $221 million U.S. dollars. and EBITDA totaled approximately 1.1 billion U.S. dollars, with a margin of 5.2%. Leverage increased 2.77 times, reflecting pressure on earnings and cash generation. While we continue to strengthen our liability profile, extending average debt maturity to approximately 15.6 years. From an operation perspective, the quarter reflected both the challenge of the cycle and the resilience of our platform. In deep North America, the environment remained very difficult. APTDA was negative to $130 million, with margin at 2.3% negative, impacted by contrained cattle supply and higher cost. During the quarter, we advanced organizational and operational adjustment across our U.S. beef platform, focused on rationaling and refurbishing and simplifying our structure in more challenging phase of the cattle cycle. As the business has evolved, several areas were already operating in an integrated way, On that, we brought together fed beef, the three business units, fed beef, regional beef, and case-ready into a more unified structure. This is a natural step. It reduces duplication, improves coordination, and allows us to leverage our skills and talent more efficiently while stressing decision-making and positioning the business to improve it performance over time. These actions are part of a broader effort driving efficiency across the company. Our focus is to extract more value from existing assets, improve productivity, and enhance execution through technology, automation, and data. Every boy and pilgrim We have been developing piloting artificial intelligence initiatives for over a year to support better decision-making, commercial execution, and operational efficiency. And we are now scaling this capability globally. At Seara, we continue to advance automation and process improvement to increase productivity, improve product equality, and support the expansion of higher value-added categories. These reflect our approach to the CISO. We act early, focus on what we control, and position the business for a stronger performance event. This quarter, once again, highlighted the importance of our diversified platform. Despite the headwinds, our business helped balance the consolidation performance. delivered an EBITDA margin of 15.5%, supported by strong export demand, innovation, and growth in value-added products, despite currency pressure and cost inflation. The outlook for poultry in Brazil remained positive, supported by balancing supply demand, including adjustment in breeder placement and continuous demand growth, JBS Brazil reported an EBITDA margin of 4.5%, a second-to-higher first quarter margin in its history, supported by a disciplined commercial execution and favorable demand. Friboi also delivered a strong top-line performance, with a solid demand both domestic and export. The China State Guard created an adjustment in the global trading flow during the quarter, But our team responded quickly, managed volume within the quota structure, and developed alternative markets, such as United States, Mexico, Indonesia, preserving value and expanding our commercial footprint. In Australia, margin reached 7.1%, and operational fundamentals remain positive. and Queensland cattle conditions are the best we have seen in the last three years, reinforcing our positive outlook for the business. In the United States, Pilgrim has a softer quarter, impacted by seasonality and planet plant adjustment. These actions were necessary to improve efficiency, enhance productivity mix, and better align our footprint with demand. The adjustments have been completed, and we have already seen improvement trends. U.S. park remains stable, with the sign of gradual improvement supported by more balanced supply and demand dynamics. Cash flow in the quarter was also impactful for growth topics, with investment focused on efficiency, especially value-added products, and stressing our global footprint. truly aligned with our long-term value creation. Looking ahead, the fundamental of a global protein remains strong. Beef supply continues to be constrained in the key markets. Poultry demand remains solid, and our brands continue to gain relevance with the consumers. Seasonality, we are very important role. The start of barbecue season in the United States, typically support stronger consumption across protein and improve the inducer conditions to coming quarters. At the same time, we all remain disciplined. Our priorities are clear. Operational excellence, extreme control on cash generation. We also remain focused on addressing the company's long-term position in a global capital market. including creating the conditions for further expanding our participation in relevant equity indices over time. We continue to review costs, optimize resources, and improve productivity across the business. We understand the cycle. We operate with discipline, and we are taking the right action to navigate the current environment while strengthening the company for the future. Thank you. I will now turn the call over to Guilherme, who will be through the financial results in more detail. Guilherme, please.

Thank you, Tomazzoni. Let's now move on to the operational and financial highlights of the first quarter of 2026. Net sales reached a record of $22 billion for a first quarter. Adjusted EBITDA in IFRS totaled $1.1 billion, which represents a margin of 5.2% in the quarter. Adjusted EBITDA in U.S. GAAP totaled $916 million, which represents a margin of 4.2% in the quarter. Adjusted operating income was $516 million, with a margin of 2.4% in IFRS. and $444 million in U.S. cap with a margin of 2.5%. Net income was $222 million in the quarter and an earnings per share of 21 cents. Excluding the non-recurring items, adjusted net income would be $241 million and an earnings per share of 23 cents per share in the quarter. Finally, the return on equity was 22% and return on invested capital was 15%. Free cash flow in the first quarter of 2026 was negative at $1.5 billion compared to a cash consumption of $970 million in the first quarter of 2025. In addition to the seasonal cash consumption that typically occurs in the first quarter, the main drivers of a higher cash burden compared to the same period last year were a decline in adjusted EBITDA of approximately $400 million, reflecting the weaker operating results. An increase in capital expenditures, which more than doubled compared to the first quarter, 2025, totaling $566 million, driven primarily by expansion of $319 million, compared to $79 million in the first quarter of 2025. An additional of $252 million working capital impact resulting from the higher livestock supplies paid in deferral as previously flagged in our last earnings call. It is worth noting that if we execute the same level of livestock deferral in the fourth quarter of 2026, This impact will be offset on the free cash flow for the full year. Notably, working capital consumption was already below the same period last year because excluding the additional $252 million in deferred livestock payments, working capital would have been approximately 23% better compared to the first quarter of 2025. In the first quarter, we also strengthened our balance sheet with the issuance of $2.5 billion in bonds in the market and the tender offer of $1.45 billion. This allowed us to extend our debt maturity profile, reaching an average debt term of 15.6 years and an average cost of 5.7%. We have no significant debt maturities until 2031. Our leverage ended the year at 2.77 times, in line with our long-term target of keeping net debt to the line between two and three times. Our $3.4 billion in revolving credit lines and $3.5 billion in available cash provide us with the flexibility to continue executing our expansion cap, value creation projects, and shareholder returns while maintaining a health and robust balance sheet. Last night, we also announced that beginning next quarter, we will voluntarily file forms 10-K, 10-Q, and 8-K with the SEC, prepared under IFRS and supplemented on the earnings released by certain indicators reported under USGET. This initiative is expected to broaden our eligibility for key benchmark indexes such as S&P Composite's 1,500 family. With that in mind, I would like to open up for the question and answer session.