MESSAGE FROM THE CEO

Our 2022 financial results demonstrate the importance of responsible financial management and JBS' ability to anticipate the natural cycles of our industry. Despite the current challenging global economic scenario and the normalization of margins in the US beef market, we enter 2023 with a comfortable cash position, stabilized debt, and no significant short-term debt maturities, which allows us to navigate with resilience and positions us well to prepare for future market opportunities.

We observe that the challenging market conditions that impacted our performance in the fourth quarter of 2022 continue into the first quarter of 2023, which is traditionally a weaker period for the global protein industry. In addition to margin compression in US beef, high inflation in important markets is weakening consumption, causing an imbalance between supply and demand. At the same time, we are facing persistent pressure on production costs.

Despite the short-term scenario, we have confidence in the medium and long-term results based on our geographical and protein diversification strategy, which has historically delivered superior outcomes. Our globally diversified and multi-protein platform, which is unparalleled in the global protein industry, was built to mitigate the impacts of natural cycles on our business and maintain a healthy cash generation, allowing the company to reinvest in its growth, continue innovating, and deliver returns to shareholders.

The company maintained healthy financial indicators, with a leverage ratio at 2.26 in US dollars. With recent liability management moves, we increased the average debt term from 8.1 years to 10 years and fixed most of our financial expenses at a low cost. At the end of 2022, our liquidity was around US$ 5.7 billion, divided between a cash balance of US$ 2.5 billion and revolving credit lines of US$ 3.2 billion, which ensures flexibility and efficiency in the utilization of these resources. The strength of our balance sheet is reflected in attainment of Full Investment Grade status across the three main rating agencies – S&P, Moody's and Fitch.

Our financial strength has allowed us to continue creating value for our shareholders. We distributed R$ 4.4 billion in dividends in 2022, and considering the buyback of R$ 2.8 billion in shares last year, we provided a shareholder return of 15%. The return on invested capital (ROIC) was 18%.

We continue to invest in expanding our business, committed to our strategy of building strong brands and adding value.

In the past two years, we have expanded the diversification of our operations with the acquisition of seven companies, enabling our entry into the salmon market (Huon in Australia) and cultivated proteins (Biotech Foods), expansion in plant-based foods in Europe (Vivera), entry into the Australian pork business (Rivalea), and strengthening our position with high-value products in the European and American markets (Sunnyvalley, Pilgrim's Food Masters and King's Group), totaling US$ 2.2 billion in asset purchases.

In 2023, we will take this strategy a step further with the completion of important investments in prepared foods in Brazil and the United States, including the start of operations of the first two breading lines and the first hot dog line at the new Seara facility in the state of Paraná, and the new Principe Italian meats facility in Missouri. In February of this year, we also resumed operations at our lamb processing plant in Australia.

This illustrates our consistent growth and that we have a lot of value to capture from these investments, with ample potential to strengthen our cash generation. We remain focused on continuous improvement of our product mix to meet the needs of our customers and consumers.

Our priority is cash generation – with an absolute focus on our operations, cost management, productivity improvement, optimization of our mix, opportunities in market irregularities and prices. We focus on what we can control to become increasingly competitive and differentiate ourselves in the markets where we operate.

Our global multi-protein platform, our competitive operational cost structure, the strength and agility of our experienced global team, and our robust financial condition give us the confidence and certainty that JBS will continue on its growth path, generating value for our stakeholders, expanding our businesses, and fulfilling our purpose of feeding the world with the best.

Gilberto Tomazoni, Global CEO JBS