2. Presenters
Wesley Mendonça Batista
CEO
James Cleary
CEO JBS Brazil Poultry
Jeremiah O’Callaghan
Investor Relations Director
PÁG. 2
3. JBS S.A. at a glance
Founded in the 1950’s in West Central Brazil
IPO in 2007
Leading protein producer in the World
Revenues of US$36.9 billion in 2011
EBITDA of US$1.9 billion in 2011
Annual net revenue organic growth of 13% in local currency y.o.y.
135,000 employees worldwide
145 production units in 5 continents
Market cap of approximately US$13 billion(1)
(1) 03/19/2012 PÁG. 3
4. Merger and Acquisition track record
1 Market Leader More than 30 acquisitions in 15 years
2005 JBS went international with the acquisition of Swift Argentina.
2 Track Record 2007 JBS became the largest beef company in the world and the
of successful biggest Brazilian company in the food industry and entered the
acquisitions US pork market.
2008 Construction of a sustainable global meat Inalca
production and sales platform. Rockdale Beef
Pilgrim´s Pride
3 Geographic and Swift Foods Co. Tatiara Meat
(Swift Austrália)
market segment 2009 Diversification of market segments through the Maringá (Amambay)
Merger with Bertin
diversification acquisition of Pilgrim’s Pride and merger with Bertin. Berazategui (Rio Platense) JBS Couros 36.9
Colonia Caroya 5 new units
2010 JBS Swift became the leader in lamb production in
Australia. SB Holdings
Tasman 31.1
JV Beef Jerky
4 Well-recognized Rio Branco
Cacoal 1 Venado Smithfield
brands Cacoal 2 Tuerto Beef
Porto Velho Pontevedra Five Rivers
Barretos (Anglo) Vilhena (CEPA)
(Frigovira)
Pres. Epitácio e Pedra Preta
Campo grande (Frigo Marca) 16.5 17.2
(Bordon)
Cáceres
(Frigosol)
Barra do Rosário
Garças Andradina Araputanga Iturama San Jose
(Sadia) (Sadia) (Frigoara) (Frigosol) (Swift Argentina)
7.2
1.2 1.5 2.0
0.4 0.4 0.5 0.5 0.4 0.7
1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Net revenue (USD billion)
Source: JBS PÁG. 4
5. Presence in more than 100 countries, in 5 continents
1 Market Leader Strategic Geographical Distribution
2 Track Record of
successful
acquisitions
3 Geographic
and market
segment
diversification
4 Well-recognized
brands
3 Pork 37 Chicken 7 Dairy 58 Distribution Center 134 Slaughterhouse and Industry
60 Beef 6 Lamb 20 Leather 17 Sales Office 1 Biodiesel
Geographic Beef Chicken Pork Leather Dairy Lamb
Presence and 85,825 heads/day 7.9 mm birds/day 50,000 heads/day 76,100 hides/day 5,400 tons/day 24,000 heads/day
Production
Capacity
Source: JBS PÁG. 5
7. World Poultry Consumption
The poultry industry has a large and global demand base. Emergent populous markets such as China, India and Russia
still have a low consumption per capita
World Poultry Consumption Poultry Consumption¹ (US$ Bn)
CAGR:
Global Consumption (2010) : 94 M ton 3.6%
CAGR: 234
9.6% 203
162
104
65
2000 2005 2010 2015E 2019E
Consumption
kg/person/year Poultry Consumption¹ (M ton)
Over 40
30-40 CAGR:
2.3%
20-30
CAGR: 116
10-20 3.1% 106
94
0-10 83
69
Relevant poultry consumption in the world, with growth prospects for the next years,
boosting Brazilian exports 2000 2005 2010 2015E 2019E
1 - Includes poultry, turkey, duck, goose and guinea fowl PÁG. 7
Source: FAO, USDA
8. Positive Prospects for the Industry
The poultry industry is increasing its importance and replacing other meats in the global consumption market
Poultry Industry Global Meat Market Breakdown
Second largest meat category 2000
− Expected to surpass pork by 2030
− Increasing demand from emerging markets
− Substitution effect from other meats Beef Poultry
26% 30%
Sheep
5% Pork 2010
39%
Main Growth Drivers
Beef
23% Poultry
Sheep 34%
4%
Increase in the world population
2030E Pork
39%
GDP growth
Cheapest source of protein Beef
20%
Sheep Poultry
4% 39%
Quick to produce vis-à-vis other proteins
Pork
No religion barriers 37%
Fonte: USDA, FAO PÁG. 8
9. Attractive Industry Dynamics
The poultry has several advantages when compared with other meats
Intrinsic Advantages of Chicken Products Key
Poultry Highlights
1 Whole Chicken
− Consumed worldwide
− Exported frozen to Middle East
− Broiler: “regular" chicken
Fast Production
− Griller: small chicken consumed
Low Cost
Production
individually in Middle East
2
Chicken Cuts
Poultry
− Chicken Fillet
No Religious Preferred part of the chicken in the developed
Barriers countries
High Nutritional − Dark Meat
Qualities Parts of chicken excluding the filet
Mainly exported to Asia where it is highly
consumed
3
Processed Products
− Mainly consumed in western countries
− Increased exports to developing
countries
Source: Market Information PÁG. 9
10. Top Countries from the Global Chicken Market
Brazil plays a relevant role in the industry
Top 7 Consumers – 2011 Top 7 Producers – 2011
M Tons M Tons
13.7 13.0 16.7
9.6 13.2 13.1
9.1
9.4
3.5 3.0 2.9
2.9 2.9 2.6
USA China Brazil EU-27 Mexico Russia India USA China Brazil EU-27 India Mexico Russia
Top 7 Exporters – 2011 Top 7 Importers – 2011
M Tons M Tons
0.9
3.9 0.8
0.7
3.2
0.6
0.5
0.4 0.4
1.0
0.5 0.4 0.2 0.2
Brazil USA EU-27 Thailand China Argentina Turkey Japan Saudi EU -27 Mexico Russia Iraq Hong
Arabia Kong
Source USDA, Ubabef PÁG. 10
11. Global Surplus (deficit)
Goldman Sachs forecast for animal protein in 2020
Surplus Deficit
Beef & Veal
Pork
Chicken
Source: Goldman Sachs PÁG. 11
12. Brazilian Poultry Industry
Largest export market with promising domestic market
Overview Poultry Exports – Main States (2010)
State Market Share
3rd largest poultry consumer in a expanding domestic market:
Santa Catarina 26.7%
– Increase in purchase power boosting demand for processed products Paraná 26.2%
– Change in Brazilian Western consumption habits R. Grande do Sul 21.0%
São Paulo 7.0%
Largest poultry exporter: Goiás 5.2%
TM
Mato Grosso 4.5%
– Brazil is a top 3 poultry producer with13.1 M tons in 2011 OG
Minas Gerais 4.3%
– In 2011, it exported approximately 30% of its production SM
SM
SM GM
PS M. Grosso do Sul 3.4%
– Middle East and Asia are the main Brazilian exports destination RP
RP
RP
RP Dist. Federal 1.5%
CS
SR Total: 3.9 M tons
Production (M ton) Exports Destination 2010 Poultry Consumption per Capita – kg / person / year
Export market represents ~30%
Others
17%
13,1 44.1
12,2 38.5
Middle East
10,9 11,0 37.0 38.5
10,3 36% 35.7
9,3 35.5
Asia
26%
America
Af rica 7%
2006 2007 2008 2009 2010 2011 13%
2006 2007 2008 2009 2010 2011
Source: USDA, Ubabef, Secex, MDIC PÁG. 12
14. Frangosul at a Glance
The Company is the 3rd largest poultry exporter in Brazil
Frangosul was founded in 1970 in the city of Montenegro (RS). The company was acquired by Group Doux in 1998
o Poultry’s production capacity of 1,100,000 chickens / day
Brief Overview o Pork’s production capacity of 3,000 hogs / day
o Sales of R$ 1.4 billion in 2011
o Well recognized brands with presence in both domestic and export market
Main Operational Assets Brands
4 slaughtering plants Highly recognized and established brands with strong reputation
– 3 dedicated plants for poultry for quality and innovation
– 1 dedicated plant for pork
1 dedicated plant for processed products and 2 breaded plants
Premium brand dedicated to the Brazilian
4 feed factories domestic market (South Region)
6 hatcheries
Grand parents (2.8 M females/year)
Growing breeders (2.2 M females/year) Value brand dedicated to the Brazilian export
Hatching eggs production (6.3 M eggs/week)
market
Multi Concept Operations Main Export Markets
Saudi Arabia Chile
Gulf Venezuela
Sourcing Product Market Distrib. Middle East LatAm
Iraq Argentina
Yemen Cuba
Whole 100 countries¹ Retailers Markets
China Greece
Cuts 5 continents Food Service Eastern
Japan Asia Europe CIS
Processed Industry Korea
(1) Includes Brazilian domestic market
PÁG. 14
Source: Company
15. Sales Breakdown of Frangosul
The Company is the 3rd largest poultry exporter
Exports Domestic Markets
8%
3% 6% 15%
8% 7%
Sales 2011
( By Market )
83% 70%
Poultry Pork Processed Others Poultry Pork Processed Others
295,178 tons 69,645 tons
3% 4% 1% 7%
6% 5%
Volume 2011
(364,823 Tons)
87%
87%
Poultry Pork Processed Others Poultry Pork Processed Others
Source: Company
PÁG. 15
16. Slaughter Plants
The Company has plants strategic located in the State of Rio Grande do Sul and Mato Grosso do Sul.
1A Montenegro I
– Poultry RR
RR
RR
RR PA
PA
PA
PA
– Area (m²): 30,498
– Capacity (heads / day): 550,000
– Production 2010 (tons): 148,863 MA
MA
MA
MA AP
AP
AP
AP
EC
EC
EC
EC AM
AM
NR
BP
BP
BP
BP IP
1B Montenegro II CA EP OT
OR
OR
OR
OR
– Processed Products LA
ES
ES
ES
ES
TM
TM
TM
TM AB
– Area (m²): 11,885
– Capacity (tons / day): 180 OG
OG
OG
OG
– Production 2010 (tons): 78,273
GM
GM
GM
GM
SM SE
PS
2 Ana Rech JR
JR
JR
JR
4
– Pork RP
RP
– Area (m²): 23,419 CS
– Capacity (heads / day): 3,000 SR
SR
SR
SR
– Production 2010 (tons): 55,227 3
2
3 Passo Fundo
1
– Poultry
– Area (m²): 25,511
– Capacity (heads / day): 430,000 Poultry Site
– Production 2010 (tons): 162,050
Pork Site
4 Caarapó
– Poultry Total Production Capacity Processed
– Area (m²): 8,710 Products
Poultry: 1,100,000 heads / day
– Capacity (heads / day): 127,000 Pork: 3,000 heads / day Export Site
– Production 2010 (tons): 37,507 Processed Products: 180 tons / day
PÁG. 16
17. Investment Highlights
JBS Frangosul
Increase in the poultry consumption
Expanding poultry
Limited production capacity in the biggest consuming countries
market
New markets opening up to importations
No religion barriers
Intrinsic
Low production costs compared to other protein sources
advantages
Fast production cycle
One of the world’s leading producers
Leading Company Sizable asset with a production capacity of ~365,000 tons (2011)
Brazil’s 3rd largest poultry exporter
JBS
Frangosul
Guarantees a stable perf ormance through:
Multi concept – Multi-product: whole, cuts, processed products
operations – Multi-market: operating in 100 countries and on 5 continents
– Multi-distribution: retailers, food service, industry
Strong brands with global impact:
Recognised – Frangosul is a respect poultry brand on the export market:
brands – LeBon has a 10% growth rate in Brazil
– [Doux Brand?]
Proven relation
Longstanding relations with customers: averaging 20 years with the Top 20
with customers
PÁG. 17
18. 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.
”