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4Q09 Conference Call Presentation
4Q09 Conference Call Presentation
4Q09 Conference Call Presentation
3.058
5,5%
32
51
73
150
185
345
432
548
602
1999
2000
2001
2002
EBITDA (R$ mm)
2003
2004
2005
2006
2007
2008
2009*
EBITDA Margin
*Pro forma including Bertin and Pilgrims Pride. Source: JBS
JBS S.A.
0 0
Presenters
Jeremiah OCallaghan
Investor Relations Director
Guilherme Arruda
Investor Relations
1
DISCLAIMER
The forward-looking statements presented herein are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future operating results, financial condition, strategies, market share and values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. Forward-looking statements also include information concerning our possible or assumed future operating results, as well as statements preceded by, followed by, or including the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.
Our Values
Excellence Planning
Determination
Discipline Availability
Openness
Simplicity
3
Agenda
Company Overview
Market Overview
4Q09 Highlights
Final Considerations
4
Company Overview
Founded 1953 in central Brazil IPO in 2007 Ibovespa ticker: JBSS3 ADR ticker: JBSAY
Leading animal protein producer in the World Production platform in South America, North America, Europe and Oceania 125,000 employees worldwide Revenues of about US$ 30 Billion per annum Market cap of R$ 22 billion*
JBS History has been built through more than 30 acquisitions in 15 years with adequate capital structure and management
Net Sales (in US$ billion) Companies and assets acquired
Inalca Swift Foods Co. Maring (Amambay) Berazategui (Rio Platense) Colonia Caroya SB Holdings JV Beef Jerky Rio Branco Venado Tuerto Pontevedra (CEPA)
Goinia (Anglo)
30.3
Araputanga (Frigoara)
Pedra Preta (Frigo Marca) Rosrio (Swift ARG) San Jose (Swift ARG)
19.8
12.7
0.3 1996
0.4 1997
0.4 1999
0.5 2000
0.5 2001
0.4 2002
0.7 2003
1.2 2004
1.5 2005
2008
(2)
2009
(3)
Source: JBS (1) Pro Forma JBS S.A. LTM Dec07 (2) Pro Forma JBS S.A. LTM Dec08 (3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrims Pride Sep09 (Estimated); Bertin LTM J un09 7
EBITDA Growth
11,0% 9,7%
5,73%
10,5% 11,2%
13,6%
5,5%
4,92%
345
432
548
602
32
51
73
150
185
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009*
EBITDA Margin
Our Strategy
2005/2006 Adequate Financial Structure 2007/2008 Global Production Platform 2009/2010 Global Sales & Distribution Platform 2011/2012 Value Added Products & Branding
Fresh Products
Cooked Products
Minced Products
Australia
European Union
Cured Products
Marketing Investments
High technology investments to produce value added products. Increase value added products portfolio. Customized products to each market. Convenience to consumers day to day. Brand and Quality recognition and leadership. Marketing investments to be present in consumer minds. Margin improvements.
Our Strategy
Branding Value Added Products Sales & Distribution Platform Production Platform
Cost Reduction, Productivity, Process Optimization
4%
Financial Structure
Experienced Management
Risk Management
EBITDA Margin
Foundation
10
Corporate Structure
Batista Family
Bertin Family
JBS S.A.
(including Bertin)
100%
Other subsidiaries
20% - 25%
64%
Pilgrims Pride
11
Shareholders
Others 10%
BNDESPAR 19%
12
Employees 44,993
JBS MERCOSUR
6,217
JBS USA
16
24,295
Pilgrims Pride
37
39,000
JBS Austrlia
10
6,995
Inalca JBS
3,500
Total
140
125,000
13
Market Overview
14
Market Highlights
Robust domestic consumption in Brazil. Growing middle classes in the Emerging Market sourcing more product through imports. Recovery of exports from US allied with improved domestic American consumption. European protein production declining. Gradual Improvement in exports generally with the reduction and/or removal of trade barriers.
15
180
1969/ 71
Cereals
Source: FAO
Sugar
Meat
16
1,491
800
600
400 200
0 2003 E.U. 2004 Russia Egypt 2005 Venezuela 2006 Algeria 2007 USA 2008 Hong Kong 2009 Others
Source: Secex
17
3.000 2.520
2.500
2.412
2.467 2.269
2.449
2.000
1.888
1.867
1.433
0 1999 Mexico 2000 Canada 2001 2002 2003 Japan 2004 Vietnam 2005 China 2006 Hong Kong 2007 2008 2009 Others
South Korea
N etherlands
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5.000 4.500 4.000 3.500 2.995 3.000 2.500 2.000 1.560 1.500 1.000 500 0 1999 Japan 2000 China 2001 Hong Kong 2002 2003 Mexico 2004 Russia 2005 Canada 2006 2007 1.278 1.287 1.612 1.717 2.181 2.667 3.142
4.667 4.128
2008 Australia
2009 Others
South Korea
19
8.000 7.109 7.000 6.070 6.000 4.980 5.000 4.000 3.000 2.000 1.000 0 1999 Russia 2000 2001 2002 Iraq 2003 Mexico 2004 2005 Canada 2006 Cuba 2007 2008 2009 Others 5.138 5.738 5.333 4.942 5.013 4.997 5.367 6.906
China (Mainland)
Other Chicken
20
Population growth coupled with rising worldwide standards of living will drive an increase in protein demand on emerging global middle class
Source: FAO 21
4Q09 Highlights
22
Net Profit of R$127.9 million in 4Q09. Net Revenue for 2009 was R$34,311.8 million, representing a 13.1% increase y-o-y. In 4Q09 the consolidated EBITDA increased 49.6% compared to 4Q08, from R$265.9 million to R$397.8 million. The consolidated EBITDA margin was 5.4% for the period, compared with 2.8% for 4Q08 Completion of the Bertin S.A. Merger and the acquisition of a controlling interest in Pilgrims Pride Corporation. A pro forma Net Revenue in 2009 of R$55,223.6 million, 82.0% higher than 2008. EBITDA pro forma of R$3,058.0 million in 2009, increase of 164.5% over the previous year.
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13.1%
11.2%
-3.8%
-0.1%
-9.5%
INALCA JBS
Net Sales
( million)
JBS MERCOSUL
Net Sales
(R$ billion)
Net Sales
(US$ billion)
2.8
2.9 2.7
2.8
2.8
600
526
554
559
606
1 62 1 44
1 44
1 46
1 41
1 .6
1 .7 1 .4
1 .7
1 .7
4Q08
1Q09
2Q09
3Q09
4Q09
4Q08
1Q09
2Q09
3Q09
4Q09
4Q08
1Q09
2Q09
3Q09
4Q09
4Q08
1Q09
2Q09
3Q09
4Q09
3.8%
9.7 8.3
1 08.4
1 26.0
6.6
7.0
25.6 7.5
24.7 1 5.3
28.6
5.6
4Q08
1Q09
2Q09
3Q09
4Q09
4Q08
1Q09
2Q09
3Q09
4Q09
4Q08
1Q09
2Q09
3Q09
4Q09
25
Debt
5,479.6
*
63%
62%
37%
38%
2009
Source: JBS Net Debt/ EBITDA EBITDA pro-forma * LTM including Bertin and Pilgrims Pride pro-forma.
Short Term Long Term
2008
26
2009
2008
E x ports 33%
Source: JBS
27
Source: JBS
Others 19%
Japan 13%
E.U. 11%
China 3%
Others 15%
Mexico 8%
Canada 8%
Russia 10%
Middle East 7%
Canada 8%
Japan 9%
E.U, 11%
Hong Kong 6%
South Korea 6% Africa and Middle East 7%
Hong Kong 5%
Source: JBS
28
29
USD 95 Million already captured, through initiatives in the personnel, transportation, and
USD 65 Million further by mid year, principally through G&A, exports, and logistic efficiencies.
10
0 Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
30
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Source: Bloomberg
2011.
31
Final Considerations
32
Final Considerations
JBS remains a Growth Company. Focus on synergy gains through the integration of Bertin in Brazil and Pilgrims Pride in the USA.
JBS continues to build its distribution platform to add value to its products and expand its margins.
Commitment to the Companys financial health and the reduction of the financial leverage, maintaining a strong cash generation.
Having taken the Company public and having elevated its corporate governance,
JBS is now focused upon the financial fundamentals to take the Company to Investment Grade.
33