JBS S A : Dados Econômico-Financeiros

MESSAGE FROM THE CEO

Gilberto Tomazoni, CEO Global JBS

Year after year, we have emphasized the importance of our global platform. In the face of challenging conditions like those we encountered in 2023, this platform has proven its strength. It has allowed us to continue generating cash and distributing dividends. Despite the persistent negative effects of the cattle cycle in the United States, the operational management measures adopted last year and the improvement in the medium-term outlook enable us to enter 2024 on the path of margin recovery.

Our focus on operational excellence was key to correcting the course of two of our businesses that underperformed in 2023: USA Beef and Seara. We identified issues and took action to adopt management measures based on our culture, with a focus on people and discipline in execution. The results of these measures are already being felt. The outlook at Seara for 2024 is positive, with significant improvement already seen in the first quarter of the year, which is traditionally challenging for the sector. Seara is now well-positioned to reap the rewards of investments in expansion made in recent years.

Our multi-protein and multi-geography strategy puts us in an unmatched position in the global industry. This diversity allows us to capitalize on the cattle cycle upswing in Brazil and Australia, while our American operation faces margin declines due to current market conditions. In Australia, the improved outlook is reflected in a significant increase in margin in the fourth quarter of 2023 compared to the same period last year. In Brazil, where the situation is similar, significant growth in cattle processing volume, increased value-added product sales, the authorization of new plants to supply the Chinese market, as well as improved profitability of exports offer promising prospects for the beef business in the short and long term.

The chicken and pork businesses faced persistent pressure on production costs throughout 2023 but are already benefiting from the normalization of grain prices, as evidenced by the results of Pilgrim's and USA Pork. The recovery of margins in these businesses also reflects a better balance of supply and demand. Pilgrim's margins saw strong growth, rising from 1.5% in the fourth quarter of 2022 to 6.8% in the fourth quarter of 2023. Similarly, USA Pork results jumped from 4.8% to 9% in the same period.

Through our global platform, we operate successfully in all relevant proteins. With results exceeding expectations, our growth in aquaculture reaffirms our belief that we will replicate what we have done previously with chicken, pork and value-added products. In 2024, we will complete a cultivated protein facility in San Sebastián, Spain. We are also building the JBS Biotech Innovation Center in Brazil, which is a Research, Development, and Innovation Biotechnology Center. We are a food company, and our focus is to meet consumer demand for all types of protein.

In 2023, we once again demonstrated our financial strength. The maintenance of our healthy cash generation allowed us to distribute US$ 448 million in dividends for the year, creating value for our shareholders. We reduced our gross debt by US$ 1.6 billion, from the third quarter to the fourth quarter, which is something we plan to continue in 2024. As a result of our financial discipline, we began the Company's deleveraging process at the end of 2023, decreasing the leverage ratio from 4.87x in the third quarter to 4.42x in the fourth quarter.

We remain confident in our long-term strategy: we will continue to reinforce our diversified platform, both geographically and by protein type, investing in strong brands, value-added products, and strategic partnerships with our customers. This set of actions is crucial for increasing margins and reducing volatility. The investments we made in 2023 are significant milestones that support this direction. In Brazil, we opened two new factories in the state of Paraná that will allow Seara to advance its expansion strategy in value-added products. Similarly, we commenced operations at the new Principe Italian meats facility in Columbia, Missouri, and invested in our King's Lynn pork unit in the UK to make it a center of excellence in cold cuts.

JBS has demonstrated resilience and strength over its 70 years. The company's diversified platform, commitment to excellence, innovation, and sustainability, focus on people and culture, and the impending dual listing in Brazil and the United States put the company in a unique position to embark on a new cycle of accelerated growth and shareholder returns.

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COMPANY PROFILE

JBS S.A. is a food company with more than 70 years of tradition and a global leader in the processing of animal protein. With operations in 25 countries, the Company serves more than 300 thousand clients in approximately 190 countries through a diversified portfolio of products and brands.

Headquartered in Brazil, it has around 270 thousand employees - in production platforms and commercial offices around the world. The structure includes prepared foods, beef, pork, lamb, fish, poultry and leather processing facilities, in addition to cattle and sheep feedlots.

In addition to the food sector, the Company also operates in segments related to the value chain, such as leather, personal care and cleaning products, collagen, metal packaging, casings, biodiesel, transportation, waste management and recycling.

JBS operates through six business units throughout the world, as follows:

• ▪ JBS Brasil: beef and leather production in Brazil; and New Businesses operations in Brazil.

• ▪ Seara: poultry and pork processing and production of prepared foods in Brazil.

• ▪ JBS Beef North America: beef processing and prepared foods in the United States and Canada.

• ▪ Australia: production of beef, lamb, pork, fish and prepared foods, with operations in Australia and New Zealand.

• ▪ JBS USA Pork: pork processing and prepared foods in the United States.

• ▪ Pilgrim's Pride: poultry and pork processing and prepared foods in the United States, Europe, Mexico and Puerto Rico.

GLOBAL PRODUCTION AND SALES PLATFORM

More than 600 production units and sales offices in more than 25 countries

Note 1. Revenue by region considers domestic sales and imports.

Fonte: JBS

INVESTMENTS AND CORPORATE EVENTS

We continue working to unlock value for JBS, on July 12 we disclosed a Material Fact announcing a proposal to our investors to list our shares in Brazil and the United States. We believe this is another way to generate even more value for all our shareholders, team members and society. The objective of the dual listing is to expand our investment capacity to grow the company and increase the access to institutional and retail investors to shares representing JBS' consolidated operations. The main purpose of the dual listing strategy is to:

(i) Adapt JBS's corporate structure to the global and diversified profile of the Company's operations;

(ii) Potential unlocking of the value of the Company's shares; and

(iii) Expand investment capacity to strengthen the conditions for growth and competition with global competitors.

The dual listing will make it possible for JBS to: (i) Further strengthen its corporate governance;

(ii) increase its visibility among the global investor community, thereby increasing the comparability with its main peers;

(iii) Broaden the access to a wider base of investors;

(iv) Increase the flexibility to use equity as a source of funding, paving the way to fundraising through issuing shares and, consequently, reduce the need to incur in debt to support growth; and

(v) Reduce the cost of capital.

The proposal to be submitted to the Company's shareholders is to promote a dual listing in Brazil and in the United States, using JBS N.V., an entity incorporated under the laws of the Netherlands, as a listed entity. At the CVM, JBS N.V. will be registered as a foreign issuer to have Brazilian Depositary Receipts - BDRs Level II listed on B3, representing its Class A Shares (as defined below). At the Securities and Exchange Commission (SEC), JBS N.V. will be registered as a foreign issuer (Foreign Private Issuer - FPI) in order to have its Class A Shares listed on the NYSE ("Dual Listing").

When completed, the transaction will not alter in any respect the current operational and management structure of JBS S.A., in such way that operating assets, employees, financial flows and logistic chains will remain where and how they operate currently.

For more details regarding the Dual Listing access the Material Fact.

On July 20th, the members of JBS' Board of Directors appointed Ms. Kátia Regina de Abreu Gomes, Mr. Cledorvino Belini and Mr. Paulo Bernardo Silva as independent members of the Board of Directors, all of them to serve their term of office until the next Shareholders' Meeting of the Company, in substitution of Ms. Leila Abraham Loria, Ms. Claudia Pimentel Trindade Prates and Mr. Estêvão de Almeida Accioly, all of who resigned on July 19, 2023 their positions as independent members of the Company's Board of Directors.

On July 24th, JBS announced that it obtained the effectiveness of the F-4 registration statement before the United States Securities and Exchange Commission (SEC) regarding the Exchange Offers. As a result of the effectiveness of the registration statement of the F-4, the Company has become a public reporting company in the United States and, accordingly, subject to the information and reporting requirements of the U.S. Securities Exchange Act of 1934, and other United States of America federal securities laws, and the compliance obligations of the SarbanesOxley Act of 2002.

INVESTMENTS AND CORPORATE EVENTS

On September 5th, the subsidiaries, JBS USA Lux S.A., JBS USA Food Company and JBS Luxembourg SARL, priced its senior notes to be offered in the international market, as follows: (i) U.S.$ 1.6 billion with a yield of 6.768% per annum and a coupon of 6.75% per annum, with maturity in 2034; and (ii) U.S.$ 900 million with yield of 7.287% per annum, and coupon of 7.250% per annum, with maturity in 2053.

On October 4th, the Company issued R$1.7 billion in Agribusiness Receivables Certificates (CRA) in 5 series, with maturities in 2028, 2030, 2033 and 2038.

On October 26th, the Company announced the opening of two plants of its subsidiary, Seara Alimentos Ltda., in the industrial complex located in the city of Rolândia, located in the north of the state of Paraná. The industrial complex will allow Seara to advance its expansion strategy into value-added products, particularly in chicken breaded products and hot dog segments. These plants are part of the investment plan announced by JBS in 2019 in the total amount of R$8 billion.

INVESTMENTS IN SUBSIDIARIES AND

To enhance the governance structure and ensure transparency in all its relationships, JBS continuously promotes the improvement of its corporate practices, creating an environment of trust with its shareholders, investors and other stakeholders.

The governance structure of JBS comprises: the Board of Directors, the Global Compliance Department, a permanently established Audit Board, and the following committees advising the Board of Directors on specific strategic subjects: Socio-Environmental Responsibility Committee; the Statutory Audit Committee; the Financial and Risk Management Committee; the Governance, Compensation and Nomination Committee; the Related Parties Committee; and the Diversity, Equity and Inclusion Committee.

The Global Compliance Committee was created in 2022 with its primary purpose to help create a more uniform and consistent compliance program across all JBS entities, including Pilgrim's. The Committee is tasked with overseeing continued improvements and enhancements to the compliance program and promoting a company-wide culture of compliance for its employees, stakeholders, business associates and customers

The Board of Directors is the Company's highest governance body. At the end of 2022 it had nine members, of which seven were independent - that is to say the majority of its members are independent.

The Members of the Board of Directors, elected at an Annual General Shareholder´s Meeting for a unified two-year term, are responsible for, among other issues, defining business policies and guidelines as well as economic, social and environmental commitments.

The positions of Chairman of the Board of Directors and the Chief Executive Officer of the Company are not held by the same person. Compensation of the CEO and other JBS leaders are performance-based, encouraging sustainable medium and long-term growth at JBS while incentivizing efforts to reach short-term targets. Surveys are used to periodically compare compensation packages with the general market practices and make sure compensation is aligned with JBS and shareholders interests.

The company has only common shares, granting equal rights to all shareholders, who also have tag-along rights in the event of changes in JBS' control. In the United States, JBS equity is also traded as Level 1 ADRs (American Depositary Receipts) on the OTCQX over-the-counter market. The Investor Relations area is responsible for communications with shareholders and potential investors; this department has a website (https://ri.jbs.com.br/en/) and releases the Company's results through conference calls and events attended by capital market agents and specialist media outlets.

EXECUTIVE OFFICERS

ETHICS AND COMPLIANCE

At JBS, Ethics and Compliance guide its employees and its business everywhere it operates. Since 2017, the Company has maintained a Compliance Officer that leads the issue independently, reporting directly to the Board of Directors.

In the scenario in which we operate, with dynamism, business expansion, and challenges and risks inherent to operations, JBS considers "Always do it right" to be a non-negotiable practice. All employees must act ethically, transparently, honestly, and legally, under the guidelines defined by the JBS Global Ethics and Compliance Officer.

Director without a specific designation Director of Administration and Control

Relations Officer Global President of

The Compliance Department is led by Michael Koenig, Global Ethics and Compliance Officer, where his mission is to strengthen the Company's strategy in its global operations and harmonize and improve existing regional standards and knowledge. Michael reports directly to the Chairman of the Board of Directors and has a functional structure that comprises six regional compliance heads. Under his leadership, the Global Ethics and Compliance Department is responsible for developing and disseminating processes, policies, channels and programs that promote ethical conduct in all of the Company's operations.

ETHICS AND COMPLIANCE

JBS also has a Global Compliance Executive Committee with the main purpose of building a more uniform and consistent Compliance program across all of the Company's units. Made up of members of the executive officers, and with the participation of senior legal advisors from JBS whenever necessary, the Committee is responsible for promoting continuous improvements in our "Always do it Right" Program, disseminating the culture of Compliance among employees, stakeholders, partners and customers.

After a period of sequential acquisitions, the appointment of both our Global Ethics and Compliance Officer and Global Executive Compliance Committee proved to be vital achievements for strengthening the alignment throughout the company.

The JBS Code of Conduct and Ethics is available in five languages (Portuguese, English, Spanish, Italian, and French) and sets clear behavioral guidelines and standards to ensure appropriate workplace conduct, efficient and safe operations, and the well-being of our team members. The Code has policies for each of the company's major risk areas, including team member safety, food safety, environmental compliance, animal welfare, corporate ethics, workplace conduct, and taxation and finance.

In addition to mandatory yearly Code of Conduct and Ethics training, new team members also receive the Code of Conduct and Ethics during the integration process and are expected to comply with our policies, regardless of their position in the Company. Corrective actions for violating the Code or Company policies include training, verbal and written warnings, suspensions and, if necessary, termination of employment.

In 2023, more than 125 thousand employees were trained in the Code of Conduct and Ethics. Training is available in different methodologies, which are developed according to each audience: executives (including Business CEOs, members of the Board of Directors and advisory committees), administrative positions and operational positions.

In 2023, more than 30 thousand employees (administrative and leadership) underwent training on Anti-Corruption and Conflict of Interest policies. The dissemination of training is carried out through campaigns, which include various pieces of communication, also adapted for each audience.

To disseminate the culture of integrity in Brazil and positively influence the sector, JBS and 17 Agribusiness companies produced the Agribusiness Anti-Corruption Good Practices Guide. A voluntary initiative by the 44 members that make up the Anti-Corruption Collective Action of the UN Global Compact Brazil Network, with the support of the Ministry of Agriculture. The document consolidates fundamental ethical principles, encouraging transparent relationships with public authorities and encouraging the construction of an increasingly honest business environment.

As a result of the continuous improvement of our "Always do it Right" Compliance Program, we have kept our global and local policies active, which must be observed in all regions where the Company operates. They are: Global Compliance Policy, which aims to provide transparency to the guidelines that guide the execution of the JBS Compliance Program, Competition Policy, JBS Ethics Line Policy, Non-Retaliation Policy, Global Anti-Corruption and Anti-Bribery Policy, and Policy for Offering/Receiving Gifts, Presents and Entertainment

The Company also has the JBS Ethics Line, which plays a fundamental role in the development of the Compliance Program, such as in the content of training, communication, review and creation of policies, among others. The JBS Ethics Line is operated by an external and independent company, available 24 hours a day, 7 days a week, in four languages, for reporting suspicions or violations in good faith regarding internal codes, policies, procedures, and legislation. In 2023, the channel received more than 5 thousand reports, all of which were treated and investigated, in accordance with specific internal policies and procedures on the topic. Investigations concluded as valid or partially valid, disciplinary measures and action plans were defined and applied.

HUMAN CAPITAL

With a team of more than 270 thousand employees, JBS stands out as an important employer in rural communities and capitals in several countries, including Canada, Brazil, Mexico, United States, United Kingdom, Australia, New Zealand, among other countries. Therefore, ensuring the opportunity for a better future for all our employees is an essential part of our mission. Each of our units invests in the training, health and safety of our employees, promoting a diverse and inclusive work environment, and supporting the surrounding communities.

The JBS team and its management practices, such as talent attraction, hiring, and retention, are guided by our Company Culture and abide by local laws and standards. Our Human Resources (HR) departments operate regionally with support from our corporate HR team and have formal processes in place to allow for information and best-practice sharing within the company.

Our staff is diverse in terms of ethnicity, culture, religion, language, and country of origin. We are committed to hiring and supporting the development of our professionals regardless of nationality, gender, sexual orientation, gender identity, or age, and we also foster the inclusion of people with disabilities. To incentivize new talent and retain current team members, we revise people management policies and programs annually, and develop key performance indicators for health and safety, turnover, absenteeism, and overtime, to monitor and improve our processes. This allows us to make immediate adjustments if necessary and ensure team member health, safety and working conditions are upheld across all facilities.

Our managers reinforce our culture of respect by being available to team members who want to discuss issues. With as many as 60 languages spoken at a single JBS facility, all company materials are made available in different languages and dialects to ensure that all team members are able to express themselves and understand key messages. This material includes information, such as benefits, safety instructions, and new materials about hiring and continuous training. Furthermore, all facilities provide unlimited access to Language Lines in over 200 languages to create immediate access to clear communication at all our facilities.

We work diligently to accommodate the cultural needs of all of our team members, and we encourage our facilities to evaluate the effectiveness of their accommodations to identify the best approaches to address their unique situations

Occupational health and safety

The health and safety of our team members is paramount. We are committed to providing safe work environments and working conditions for our team members across all JBS facilities.

In practice, we are responsible for the health and safety of our workforce, business partners, suppliers, and other stakeholders. Throughout our operations, we work to build and disseminate a culture that values health and safety, individual accountability, and shared vigilance, and is led by the example of our business and team leaders. We then strive to instill this same responsibility in our team members through development, training and education, with support from our Code of Conduct and Ethics and Global Health and Safety Policy.

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JBS SA published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 23:40:10 UTC.