• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Jbs presentation 1_q10 v1
 

Jbs presentation 1_q10 v1

on

  • 1,251 views

 

Statistics

Views

Total Views
1,251
Views on SlideShare
1,144
Embed Views
107

Actions

Likes
0
Downloads
16
Comments
0

2 Embeds 107

http://jbs.riweb.com.br 94
http://www.slideshare.net 13

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Jbs presentation 1_q10 v1 Jbs presentation 1_q10 v1 Presentation Transcript

    • 1st Quarter 2010 Results May 14th, 2010 0 0
    • Presenters Joesley Mendonça Batista Chief Executive Officer Jeremiah O’Callaghan Investor Relations Director Guilherme Arruda Investor Relations
    • 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. 2
    • Our Mission To be the best at 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 for all our employees. Our Values Excellence Planning Determination Discipline Availability Openness Simplicity 3
    • Agenda Company Overview Market Overview 1Q10 Highlights Short Term Outlook 4
    • Company Overview 5
    • JBS S.A. at a Glance • Founded in the 1950’s in Central West Brazil • IPO in 2007 • Ibovespa ticker: JBSS3 • ADR ticker: JBSAY • Leading protein producer in the World • Production platform in South America, North America, Europe and Oceania • 125,000 employees worldwide • Market cap of approximately R$19 billion * *Source: Bloomberg 13/05/2010 6
    • Shareholders PROT - FIP 8% Market 19.1% Controlling Holding 55.5% BNDESPAR 17.3% 7
    • JBS S.A. Growth Through Acquisitions EBITDA (R$mm) Bertin Merger CAGR (2001-2009): 62% Pilgrim ’s Pride JBS Hides 5 new units Tasman Smithfield Beef Inalca Five Rivers Swift Foods Co. SB Holdings Venado Tuerto Pontevedra (CEPA) . 2001 2006 – pre IPO 2009 % of total revenues of R$1,212mm % of total revenues of R$4.3bn % of total revenues of R$55.2bn Industrialized/ Poultry Further 13% Pork Processed 23% 6% 100% 52% Industrialized/ 77% Beef 29% Further Beef Beef Processed 8
    • Global Low Cost Production Platform 3 8 33 3 1 Total Number of Plants 65 33 10 5 3 44 6 World Beef Producers World Pork Producers World Chicken Producers Brazil Brazil Others Brazil Others 3% 16% 17% Others 15% 34% 34% 10% China US 10% China 17% China 48% 14% 22% 21% 5% EU 22% 12% EU EU US India US 9
    • Leading, Sizeable and Diversified Business Platform Hides / Beef Chicken Pork Dairy Lamb Leather 1st 2nd 3rd 1st 3rd 1st Ranking Global Global U.S.A. Global Brazil Global Production 65 33 3 26 7 6 Units ‘000 heads/day: mm heads/day: ‘000 heads/day: ‘000 hides/day: ‘000 tons/day: ‘000 heads/day: 41.2 55.6 1.4 1.1 Geographic 6.7 Presence and 28.6 6.9 48.5 28.6 4.5 Installed 8.7 6.0 23.0 Capacity 3.0 1.0 0.7 1.2 Total: 90.3 Total: 7.6 Total: 48.5 Total: 91.4 Total: 1.4 Total: 27.5 Well- Recognized Brands 10
    • Our Strategy Rationale Branding • Associating quality and branding to increase client loyalty • Customized and further Value added products processed products for the end users Sales and distribution platform • Expanding a global distribution platform to reach end clients • Developed an efficient Production platform and diversified global production platform Cost Financial Experienced reduction, Risk structure management process management EBITDA Margin optimization JBS’ Value & Strategy 11
    • Distribution Platform with Access to Key Markets Growth 1 -2 % 3% 4% Growth 1 9% 13 % 8% Growth 1 Growth 1 7% 2% 25 % 8% 16 % 5% 53 Distribution Centers Protein Consumption in Key Markets (millions of Ton, 2009E) Europe Asia & Middle Europe Asia & Middle Asia Europe East East 12 51 17% 8 16% 21 13 28% 30 24% 41% Latin America Latin America 15% 59% 3% 22% 11 3 Latin America 13% 33% 28% North America North America 10 North America 15 11 21 Total: 46 mm ton Total: 74 mm ton Total: 86 mm ton 12 1 Real growth of total consumption in tons – 2010E to 2015E Source – OECD-FAO
    • Market Overview 13
    • Market Highlights • Domestic growth in Brazil remains strong • Grain prices are competitive • Signs of growing importance of international trade with increased demand in all major importing markets • Increase in US Exports • Declining production in Europe 14
    • Per capita food consumption curve (Kg / Year) Source: FAO 15
    • Brazilian Beef exports (Thousand Tons) 1,600 1,491 1,425 1,400 1,263 1,218 1,200 1,095 1,086 1,000 780 800 600 400 231 258 200 0 2003 2004 2005 2006 2007 2008 2009 2010* E.U. Russia Egypt Venezuela Algeria USA Hong Kong Others Until March Source: Secex * Until March 16
    • US Beef and Veal Exports (Million Pounds) 3,000 2,520 2,412 2,467 2,449 2,500 2,269 2,000 1,888 1,867 1,500 1,433 1,146 1,000 697 461 478 500 384 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Mexico Canada South Korea Japan Vietnam China Hong Kong Netherlands Others Until March Source: USDA ERS * Until March 17
    • US Pork Exports (Million Pounds) 5,000 4,667 4,500 4,128 4,000 3,500 3,142 2,995 3,000 2,667 2,500 2,181 2,000 1,612 1,717 1,560 1,500 1,278 1,287 1,047 1,000 1,034 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Japan China Hong Kong Mexico Russia Canada South Korea Australia Others Until March Source: USDA ERS * Until March 18
    • US Poultry Exports (Million Pounds) 8,000 7,109 6,906 7,000 6,070 6,000 5,738 5,333 5,367 5,138 4,980 4,942 5,013 4,997 5,000 4,000 3,000 2,000 1,508 1,754 1,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * 2010 Russia China (Mainland) Iraq Mexico Canada Cuba Other Chicken Others Until March Source: USDA ERS * Until March 19
    • Beef & Veal – Supply and Demand in 2020 Global Surplus (Deficit) of Beef & Veal (Million metric tons) USA 1.2 Europe 0.2 China 1.5 0.8 0.5 12.7 13.0 8.0 8.6 8.6 8.1 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption Argentina & Uruguay 0.4 3.6 3.2 Production Imports Exports Consumption Brazil India Australia 0.2 5.1 0.5 14.3 4.1 9.4 3.6 2.4 1.6 0.8 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption Source: Goldman Sachs 20
    • Chicken – Supply and Demand in 2020 Global Surplus (Deficit) of Chicken (Million metric tons) Europe Russia China 0.2 1.1 0.9 1.2 19.2 20.0 8.9 9.1 3.4 2.2 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption USA Surplus 4.1 Deficit 19.1 15.1 Production Imports Exports Consumption Brazil India Thailand 6.9 0.8 16.2 1.9 9.4 3.7 3.7 1.0 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption Source: Goldman Sachs 21
    • Pork – Supply and Demand in 2020 Global Surplus (Deficit) of Pork Meat (Million metric tons) Canada Europe Russia 1.1 0.1 1.1 0.3 1.3 22.7 21.6 3.8 2.2 2.7 1.2 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption USA Surplus 0.5 Deficit 2.5 11.9 9.9 Production Imports Exports Consumption Mexico Brazil China 0.3 0.8 0.7 0.2 1.2 56.9 56.4 1.6 2.1 4.2 3.0 Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption Source: Goldman Sachs 22
    • 1Q10 Highlights 23
    • Highlights for the 1st Quarter 2010 • Net Revenue increased by 35.4%, from R$9,267.9 million in 1Q09 to R$12,550.3 million in 1Q10, mainly due to the incorporation of Bertin and acquisition of Pilgrim’s Pride. • The 1Q10 consolidated EBITDA increased 307.5% compared to the same period in 2009, from R$211.5 million to R$862.0 million. The EBITDA margin was 6.9% for the period, compared with 2.3% for 1Q09. • Net Profit of R$99.4 million in 1Q10, compared to a net loss of R$322.7 million in 1Q09. • Beef US posted EBITDA of US$170.5 million, on margin of 6.0%, a record for 1Q. • In Mercosul, JBS posted EBITDA of R$352.6 million, with 11.9% margin. 24
    • JBS Consolidated Results Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) -0.1% -9.5% -11.6% 69.4% 81.6% -24.0% 36.3% 95,2% Source: JBS EBITDA Margin (%) 25
    • Performance by Business Units JBS MERCOSUL INALCA JBS Net Sales Net Sales (R$ billion) (€ million) EBITDA (R$ mi) EBITDA EBITDA (€ mi) margin EBITDA margin Source JBS 26 EBITDA Margin (%)
    • Performance by Business Units JBS USA (Beef) Including Australia JBS USA (Pork) JBS USA Poultry Net Sales Net Sales Net Sales (US$ billion) (US$ million) (US$ million) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA margin EBITDA margin EBITDA margin Source JBS 27 EBITDA Margin (%)
    • Debt • Net debt / EBITDA ratio remained at 3.1x q-o-q. Gross debt declined 5.7%, while Net Debt increased 12.2%, reflecting working capital requirements to ramp up recent acquisitions, as well as investments in fixed assets, further impacted by FX fluctuations. • The vast majority of the company’s ST debt is composed of revolving trade finance credit lines. • As demonstrated below, the percentage of short term debt was 40% in 1Q10, compared with 37% in 4Q09 and 47% in 1Q09. Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million) * Source: JBS Net Debt/ EBITDA EBITDA pro-forma * LTM including Bertin and Pilgrim’s Pride pro-forma. 28
    • Revenue Distribution by Market 1Q10 1Q09 Exports Exports 23% 22% Domestic Domestic Market Market 77% 78% Source: JBS Source: JBS 29
    • JBS Consolidated Exports Distribution JBS Exports 1Q10 JBS Exports 1Q09 US$ 1,765.4 Million US$ 901.4 Million Taiwan Others Japan 2% 14% Middle East 16% 4% E.U. Canada 16% 4% China 5% South Korea USA Hong Kong Russia 6% Mexico 11% 5% 8% 9% Source: JBS 30
    • Short Term Outlook 31
    • A Closer look at synergies – Pilgrim’s Pride Pilgrim’s Pride Acquisition: Synergies of over US$220mm/year Description Size Timing Transportation Review of contract terms with carriers US$35mn  Suppliers Review of contract terms with packaging and other suppliers US$30mn  Corporate Streamlining of corporate structure and headquarters closure US$35mn 1H10 G&A Review of service contracts (e.g. Legal, insurance and IT) US$50mn 1H10 Logistics optimization Increase efficiency in average weight per truck US$50mn 2 years Exports Reach-out to end clients through JBS existing sales network US$20mn 2010 Total US$220mn Source: Bloomberg 32
    • A Closer look at synergies – Bertin S.A. Association with Bertin: Synergies to Achieve at Least R$485mm/year Description Size Timing Corporate/G&A Offices, personnel, services contracts and third parties R$40mn  Exports Maximization of the combined sales channels and review of freight contracts R$100mn  Hides / Leather Value enhancement through further processing R$45mn 1H10 Logistics Review of transportation contracts R$20mn 1H10 Suppliers Review contract terms of non core suppliers (e.g. packaging) R$35mn 2 years Industrial Processes Optimization of fixed costs and rationalization of existing contracts R$245mn 2010 Total R$485mn 33
    • IR Contacts: ir@jbs.com.br +55 11 3144 4055 Final Considerations www.jbs.com.br/ir “In God We Trust, Nature We Respect” 34 34
    • IR Contacts: ir@jbs.com.br Q&A “In God We Trust, Nature We Respect” +55 11 3144 4055 35 35 www.jbs.com.br/ir