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Presentation JBS
Presentation JBS
JBS S.A.
PAGE
JBS Ranking
3 Geographic and
1 1
1
3
4 Well-recognized
brands
st
Source: JBS
PAGE
2008
3 Geographic and
Pilgrims Pride
2009
Maring (Amambay) Berazategui (Rio Platense) Colonia Caroya SB Holdings JV Beef Jerky Rio Branco Venado Cacoal 1 Tuerto Cacoal 2 Porto Velho Pontevedra Vilhena (CEPA) (Frigovira) Pedra Preta (Frigo Marca) Cceres (Frigosol) Iturama (Frigosol) Rosrio San Jose (Swift Argentina)
2010
36.9 31.1
4 Well-recognized
brands
Barretos (Anglo) Pres. Epitcio e Campo grande (Bordon) Barra do Garas (Sadia)
16.5
17.2
Andradina (Sadia)
Araputanga (Frigoara)
7.2
0.4
1997
0.4
1999
0.5
2000
0.5
2001
0.4
2002
0.7
2003
1.2
2004
1.5
2005
2.0
2006 2007 2008 2009 2010 2011
Source: JBS
PAGE
3 Geographic and
4 Well-recognized
brands
Leather Chicken
Biodiesel Lamb
Collagen
PAGE
3 Geographic and
4 Well-recognized
brands
3 61
Pork Beef
39
Chicken Lamb
2 29
Biodiesel Leather
64 17
301
Beef
81,400 heads/day
Chicken
8.3 mm birds/day
Pork
50,100 heads/day
Leather
86,300 hides/day
Lamb
18,265 heads/day
PAGE
Our Strategy
RATIONALE
Branding
Associating quality and branding to increase client loyalty Customized and further processed products for the end users Expanding a global distribution platform to reach end clients Developed an efficient and diversified global production platform Risk Management EBITDA Margin
Production platform Financial Structure Experienced Management Cost reduction, process optimization
PAGE
Brazil
3 Geographic and
Argentina
4 Well-recognized
brands
USA
Australia
PAGE
+7.5%
E.U. - 27 +3.0%
Middle East
+47.7%
+41.4%
+23.7%
East Asia
Central America
+29%
+70.2%
Southeast Asia
+48.7%
Oceania
+32.2%
South America Africa
+23.3%
PAGE
11
Central America North America South America Australia Eastern Europe and former Soviet Union
Western Europe
Asia
1965 1990
1970 1995
1975 2000
1980 2005
1985 2010
* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. Source: The Economist
PAGE
12
250
200
150
100
50
0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
PAGE
13
Others 12%
Brazil 17%
Argentina 3%
Uruguay 4%
Canada 5%
Australia 17%
India 14%
PAGE
14
5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 2006 2007 2008 2009 2010 2011 1S11 1S12
400.000 200.000 0
5.000
4.500 4.000 3.500 3.000
800.000
600.000 400.000 200.000 0 2006 2007 2008 2009 2010 2011 1S11 1S12
-0.2%
6.500 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0
PAGE
15
1.600
1.400 1.200 3.4% 1.000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 1S11 1S12
3.000.000
2.500.000 2.000.000 1.500.000 1.000.000 500.000 0
0
2006 2007 2008 2009 2010 2011 1S11 1S12
Chicken Exports
PAGE
16
1.500.000
1.500.000
1.8%
1.200.000
1.200.000
300.000
500
0
300.000
0
2006 2007 2008 2009 2010 2011 1S11 1S12
Pork Exports
PAGE
17
Surplus
Deficit
18
2Q12 Highlights
2Q12 Highlights
JBS posted consolidated net revenue of R$18.5 billion, 26.3% higher than 2Q11. Consolidated EBITDA was R$1,012.8 million which represents an increase of 72.3% compared to 2Q11. EBITDA margin was 5.5%.
JBS Mercosul was highlight during the quarter reporting net revenue of R$4,317.7 million, an increase of 19.4% over 2Q11. EBITDA increased 47.3% over the same period and was R$630.3 million, EBITDA margin was 14.6%.
JBS USA Chicken (Pilgrims Pride Corporation) posted net revenue of US$2.0 billion and EBITDA of US$125.7 million in the period, reversing the negative result presented in 2Q11. Adjusted net Income in the period was R$212.9 million excluding deferred income tax liabilities generated by goodwill (this only generates effective income tax payment if the company sells the investment that generated goodwill). Consolidated reported net income was R$169.5 million. The Company ended the quarter with R$5.475 billion in cash or cash equivalent, corresponding to more than 110% of short-term debt.
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20
16,934.5
8,0
14,116.3
4.0
5.1
5.6
4.3
5.5
+10.3%
1,012.8 696.5
+45.4%
2Q11
3Q11
4Q11
1Q12
2Q12
2Q11
3Q11
4Q11
1Q12
-12,0
Source: JBS
PAGE
21
Quarterly Analysis
Performance by Business Unit
JBS Mercosul
Net sales (R$ billion)
4.3
JBS USA
Net sales (US$ million)
1300,0 1220,0 1140,0
3.9 3.6
3.8
3.8
4.2 4.0
4.3 4.1
1060,0
980,0
846.0 867.1
900,0
2.0
820,0
740,0
660,0
580,0
500,0
420,0
340,0
260,0
180,0
100,0
2Q11
3Q11
4Q11
1Q12
2Q12
2Q11
3Q11
4Q11
1Q12
2Q12
2Q11
3Q11
4Q11
1Q12
2Q12
2Q11
3Q11
4Q11
1Q12
2Q12
11.8% 11.6%
700
600
500
14.6%
16,0%
14,0%
400
12,0%
10,0%
1.1%
300
4.4%
5.0% 223.6
10,0%
9.9%
8,0%
8.8%
13,0%
500
8.3%
6,0%
6.5% 5.8%
9,0%
5.5%
400
6.4%
9,0%
7,0%
8,0%
4,0% 5,0%
5,0%
2,0%
3,0%
1,0%
6,0%
83.6
75.9
-3,0%
-1,0%
-3,0% -7,0%
-8,0%
300
0,0%
200
-5,0%
-10,0%
-2,0%
-12,0%
-11,0%
-7,0%
-6,0% 100
-9,0%
-45.4 1Q12
-9.1 2Q12
-11,0%
-8,0%
-13,0%
-10,0%
-22,0%
-0,023
-23,0%
-15,0%
-24,0%
2Q11
3Q11
4Q11
1Q12
2Q12
-100
-26,0%
-28,0%
2Q11
3Q11
4Q11
1Q12
2Q12
-100 -200
2Q11
3Q11
4Q11
1Q12
2Q12
-17,0%
-19,0%
-30,0%
-21,0%
-23,0%
-25,0%
Source: JBS
PAGE
22
Venezuela 1.9% Taiwan 2.1% Chile 3.6% China, Hong Kong and Vietnam 14.6%
US$4,387 million
Japan 11.7%
Canada 4.8%
E.U 6.1% Russia 9.3% South Korea 6.2% Africa and Middle East 9.1%
Source: JBS
PAGE
23
Debt Profile
2Q12 Net debt to EBITDA was 4.27x. The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 110% of short-term debt. The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12
Leverage
1500 1300 1100 900 700 500 300
ST / LT Debt Profile
4.30 4.00 4.27
4.04
3.60
4 3 2 1
3Q11
28%
72%
4Q11
28%
72%
1Q12
27%
73%
100
-100 2Q11 3Q11 4Q11 1Q12 2Q12
2Q12
23%
77%
0
Short Term Long Term
. .
Leverage
EBITDA
Source: JBS
PAGE
24
2013
2014
2015
2016
2017
2018
656 169
883
Bonds / Other
2Q12
Subsidiaries 43%
2Q12
Bonds 37%
Other 63%
2Q12
R$ 25%
USD 75%
PAGE
25
Laboratory
PAGE
26
Environmental JBS SA participates in CDP - Carbon Disclosure Project. Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2. Satellite image monitoring of the Amazon Biome Purpose: reduce deforestation in the Amazon Biome; avoid purchasing cattle from Environmentally Protected Areas EPAs, Indigenous reserves and protected areas; eradication of slave labor in Brazil. Social & Environmental
Amazon
JBS Brazil monitors a 100% of its cattle suppliers properties via satellite geo-referencing (GPS monitoring). JBS contains a database of almost 12,000 cattle ranches registered in the Amazon Biome. After the property coordinates are collected, the data is keyed into JBSs registry of cattle suppliers and is sent to an outsource company to be analyzed by superimposing on a map constructed from satellite images and the DETER(1) and PRODES(2) produced by Brazils National Institute for Space Research INPE.
PAGE
Satellite image
Source: JBS Sustainability Policy (1)Real Time Deforestation Detection (2)Legal Amazon Deforestation Monitoring Project
27
Mission
To be best in what we set out to do, totally focused on our business, ensuring the best products and services for our customers, solidity for our suppliers, satisfactory profitability for our shareholders and the certainty of a better future to all our employees.