1Q09 Results Presentation

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1Q09 Results Presentation

  1. 1. 1st Quarter 2009 Results May 15th, 2009 JBS S.A. “In God we Trust”
  2. 2. Presenters Joesley Mendonça Batista CEO Jeremiah O’Callaghan Investor Relations Director Rodrigo Gagliardi Investor Relations Manager 1
  3. 3. Our Values The Foundation Of Our Culture Planning Determination Discipline Availability Openness Simplicity 2
  4. 4. Agenda Our Strategy 1Q09 Highlights Consolidated Results Debt Profile Revenue Distribution Final Considerations Questions and Answers 3
  5. 5. Our Strategy 4
  6. 6. Highlights  Net revenue increased 58.2% from R$5,859.1 million in 1Q08 to R$9,267.9 million in 1Q09.  Consolidated EBITDA increased 20.4% when compared with the same period last year from R$175.7 to R$211.5 million.  The conclusion of financial and structural adjustments required with a view towards the ongoing growth of the Company as defined in its strategy.  70.0% of the level reached in relation to cost reductions and efficiency increase.  Sustained EBITDA margin maintenance in the Beef operation in the US (2.2%) bearing in mind the seasonality.  The improvement of the Brazilian market where an EBITDA margin of 7.2% was reached in 1Q09 indicating a positive trend in this market.  The consolidation of a Global Production Platform.  The consolidation of the strategy to build a sustainable, direct and efficient global distribution 4 platform of meat and meat products both chilled and frozen. 5
  7. 7. JBS Consolidated Results Net Revenue, EBITDA and EBITDA Margin Net Sales Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) 6.1% 4.1% 3.0% 2.8% 2.3% 9,633.2 470.5 9,267.9 7,771.5 7,129.5 5,859.1 290.8 265.9 211.5 175.7 21.7% 9.0% 24.0% -3.8% 65.5% 61.8% -43.5% -20.4% 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 Source: JBS EBITDA Margin (%) 6
  8. 8. Performance by Business Units JBS USA (Beef) Including Australia JBS USA (Pork) INALCA JBS JBS MERCOSUL Net Sales Net Sales Net Sales Net Sales (US$ million) (US$ million) (€ million) (R$ million) 2.8 2.8 2.8 1.8 2.6 1.6 1.4 1.4 2.0 1.3 682 162 620 600 140 143 144 536 526 132 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (€ mi) EBITDA (R$ mi) EBITDA margin EBITDA margin EBITDA margin EBITDA margin 5.6% 7.6% 10.4% 5.1% 5.6% 5.1% 4.7% 5.3% 2.2% 2.2% 3.2% 4.3% 3.9% 2.9% 5.6% 4.1% 1.4% 4.3% 3.7% -0.7% 155.6 52.1 132.9 7.6 8.3 7.3 6.6 5.6 60.4 59.7 199,1 25.6 58,2 19.9 69.4 53.5 15.6 58.2 -13.5 7.5 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 Source JBS 7 EBITDA Margin (%)
  9. 9. JBS – Net Debt/EBITDA Net Debt / EBITDA Pro Forma per TRIMESTER • JBS continues its plan to reduce Net Debt = R$ 4,174 MM = 2.52 leverage in 2009. EBITDA pro forma = R$ 1,658 MM 3.74 2.89 2.77 2.52* 2.31 1.95 Exchange Rate: 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 R$ / US$ = 2.32 – 03/31/2009 US$ / €$ = 1.33 – 03/31/2009 Source: JBS Net Debt/ EBITDA EBITDA pro-forma * LTM including Smithfield Beef pro-forma. 8
  10. 10. Evolution of the EBITDA Margins of JBS USA (Beef) compared with its local peers EBITDA Margin (%) Peers Average Beef USA 6.4% JBS Beef USA 5.1% 5.6% 3.0% 2.3% 2.2% 3.2% 1.3% 1.3% 0.9% 0.9% 2.2% 1.2% -0.4% 1.1% 0.5% -0.9% 0.3% -0.6% -0.7% -0.9% 5.7 p.p Gain -3.5% FY04* FY05* FY06* FY07* 3Q07** 4Q07** 1Q08** 2Q08** 3Q08** 4Q08** 1Q09** Previous Management JBS S.A. Management Source: JBS and estimates of JBS based upon public data from peers EBITDA margins of the Companies taking into consideration beef business *Fiscal years for the Companies differ one from the other: FY Tyson: October to September FY Smithfield: May to April FY National Beef: September to August FY JBS USA: June to May (altered after the acquisition) **The relevant quarterly period and adjustments made to the calendar year 9
  11. 11. JBS Consolidated Gross Revenue Distribution Revenue Distribution by Business Units 1Q09 Revenue Distribution by Market 1Q09 Beef Australia Beef Italy 5% Beef Argentina 9% 2% Exports Pork USA Beef Brazil 22% 12% 15% Domestic Market 78% Beef USA 57% Source: JBS Source: JBS 10
  12. 12. JBS Consolidated Exports Distribution Exports Distribution 1Q09 Taiwan O thers Japan 2% 14% Middle East 16% 4% E.U. Canada 16% 4% China 5% SouthKorea USA HongKong 6% R s us ia Mexico 11% 5% 8% 9% JBS Exports 1Q09: US$ 901.4 Million Source: JBS 11
  13. 13. Final Considerations • We are motivated and confident about the Company’s performance in 2009 • We will continue to take good care of the financials of the Company. • In April 2009, JBS USA issued a Senior Unsecured Notes in the principal amount of US$700 million, with a coupon of 11.625%, due 2014. • Our global production platform will continue to grow in the search for efficiencies, new synergies between our operations with an eye towards reducing costs. • We will consolidate the strategy of creating a sustainable, direct and efficient Global distribution platform of meat and meat products both chilled and frozen. 12
  14. 14. Questions & Answers May 15th, 2009 JBS S.A. “In God we Trust”
  15. 15. 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. 14

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