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Jbs Presentation March Jbs Presentation March Presentation Transcript

  • March, 2010 JBS S.A. 0 0 “In God We Trust, Nature We Respect”
  • Our Values Excellence Planning Determination Discipline Availability Openness Simplicity 1
  • Agenda Company Overview Market Overview 4Q09 Highlights Short Term Outlook 2
  • Company Overview 3
  • JBS S.A. at a Glance • 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* *Source: Bloomberg 25/02/2010 4
  • JBS S.A. Growth Through Acquisitions • JBS’ History has been built through Bertin Association Inalca more than 30 acquisitions in 15 years Swift Foods Co. Pilgrim’s Pride with adequate capital structure and Maringá (Amambay) JBS Hides management Berazategui 5 new units (Rio Platense) Colonia Caroya Net Sales (in US$ billion) Tasman SB Holdings Smithfield Companies and assets acquired JV Beef Jerky Beef Five Rivers Rio Branco Venado Goiânia Barretos (Anglo) 30.3 Cacoal 1 Tuerto (Anglo) Pres. Epitácio (Bordon) Cacoal 2 Pontevedra Campo Grande (Bordon) Porto Velho (CEPA) Vilhena (Frigovira) Barra do Cáceres Pedra Preta Garças Araputanga 19.8 (Frigo Marca) (Frigosol) (Sadia) (Frigoara) Rosário Iturama (Swift ARG) (Frigosol) San Jose Andradina 12.7 (Sadia) (Swift ARG) 1.2 1.5 1.9 0.3 0.4 0.4 0.5 0.5 0.4 0.7 (1) (2) (3) 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 R$/US$ end of the year quotation Source: JBS (1) Pro Forma JBS S.A. LTM Dec07 (2) Pro Forma JBS S.A. LTM Dec08 5 (3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrim’s Pride Sep09 (Estimated); Bertin LTM Jun09
  • EBITDA Growth • JBS remains a Growth Company. 3.058 11,0% 10,5% 9,7% 13,6% 11,2% 5,73% 6,0% 5,5% 4,92% 4,3% 3,8% 1.156 548 602 432 345 150 185 32 51 73 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* EBITDA (R$ mm) EBITDA Margin *Pro forma including Bertin and Pilgrim’s Pride. Source: JBS 6
  • Our Strategy 2005/2006 2009/2010 2011/2012 2007/2008 Adequate Global Sales & Value Added Global Production Financial Distribution Products & Platform Structure Platform Branding South America Fresh Products South Debt for America North America Cooked Products Working Australia Minced Products North Cured Products Capital America European Union Ready to Eat Products Equity Australia Asia Case Ready Products to Russia Global Brands Finance European Africa Marketing Union Growth Middle East Investments - Access to raw material - Integrate the sales and - High technology - High liquidity level. distribution platform to investments to produce supply globally. - Debt equalized to cash serve efficiently, local and value added products. - Leader in countries with generation. external markets, small - Increase value added surplus production. - Strong cash position. retailers, food processors, products portfolio. - Scale. - Access to international restaurants, and other - Customized products to - Leader in exports globally. capital markets to finance customers globally. each market. - Access to all meat growth. - Sales force distributed over - Convenience to consumers markets. the globe. - Development of long term day to day. - Exchange of best - Efficiency on selling the best financing plan. - Brand and Quality practices. product, to the best market, - Use of export platform to recognition and leadership. - Efficiency cost gains. with the best price. - Marketing investments to grow. - Cost reduction - Cost reduction on sales and be present in consumer - Hands-on working capital opportunities. 7 transport. minds. management. - Margin improvements. - Margin improvements. - Margin improvements.
  • Our Strategy Branding Value Added Products Sales & Distribution Platform Production Platform 4% Cost Reduction, EBITDA Financial Experienced Productivity, Risk Margin Structure Management Process Management Optimization Foundation 8
  • Corporate Structure Batista Family Bertin Family Controlling Market Holding (Free Float) 59% 41% JBS S.A. BNDES (including Bertin) 100% 80% - 75% US$ 2 Bn Other JBS U.S.A. subsidiaries Includes AUS 20% - 25% Other 64% shareholders 36% Pilgrim’s Pride 9
  • Shareholders Foreign Others Investors 10% 10% Individual 1% BNDESPAR Controlling 19% Holding 59% 10
  • Global Production Platform Production Units Employees Daily Slaughter Capacity JBS Brasil 61 44,993 43,400 B JBS MERCOSUR 8 6,217 8,400 B 28,600 B JBS USA 16 24,295 48,500 P 4,500 S Pilgrims Pride 37 39,000 7,200,000 C 8,690 B JBS Austrália 10 6,995 20,000 S Inalca JBS 8 3,500 3,000 B 92,090 B 48,500 P Total 140 125,000 24,500 S 7,200,000 C (B) Beef; (P) Pork; (S) Smalls; (C) Chicken 11
  • Market Overview 12
  • 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. 13
  • Per capita food consumption curve (Kg / Year) 180 1969/ 71 160 1979/ 81 1989/ 91 140 1999/ 01 120 2030 2050 100 80 60 40 20 0 Cereals Roots and Beans, Peas Sugar Oils Crops Meat Milk and its Tubers and Lentils and its products Source: FAO products 14
  • Brazilian Beef exports (Thousand Tons) 1,600 1,491 1,425 1,400 1,263 1,218 1,200 1,095 1,086 1,000 780 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 E.U. Russia Egypt Venezuela Algeria USA Hong Kong Others Source: Secex 15
  • US Beef and Veal Exports (Million Pounds) 3.000 2.467 2.520 2.412 2.449 2.500 2.269 2.000 1.888 1.867 1.433 1.500 1.146 1.000 697 461 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mexico Canada South Korea Japan Vietnam China Hong Kong N etherlands Others Source: USDA ERS 16
  • 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 1.717 1.560 1.612 1.500 1.278 1.287 1.000 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Japan China Hong Kong Mexico Russia Canada South Korea Australia Others Source: USDA ERS 17
  • 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 5.013 4.980 4.942 4.997 5.000 4.000 3.000 2.000 1.000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Russia China (Mainland) Iraq Mexico Canada Cuba Other Chicken Others Source: USDA ERS 18
  • Strong Long-term Industry Fundamentals Meats Consumption Per Capita Recommended consumption 80kg/capita Per capita consumption (kg/capita) Population growth coupled with rising worldwide standards of living will drive an increase in protein demand on emerging global middle class Source: FAO 19
  • 4Q09 Highlights 20
  • Highlights for the 4th Quarter 2009 • 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 Pilgrim’s 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$3,058.0 million in 2009, increase of 164.5% over the previous year. 21
  • JBS Consolidated Results Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) 13.1% 11.2% -3.8% -0.1% -9.5% -11.6% -20.4% 81.6% -24.0% 36.3% Source: JBS EBITDA Margin (%) 22
  • 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$ billion) (US$ million) (€ million) (R$ billion) 2.9 2.8 606 1 62 1.6 1.7 1.7 2.8 2.8 600 526 554 559 1 44 1 46 1 41 1.4 1.7 2.7 1 44 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (€ mi) EBITDA (R$ mi) EBITDA margin EBITDA margin EBITDA margin EBITDA margin 4.7% 6.6% 4.3% 4.5% 4.5% 2.7% 5.1% 4.6% 5.0% 3.8% 1.4% 3.9% 3.6% 2.2% 2.2% 9.7 8.3 7.0 126.0 6.6 104.6 108.4 5.6 28.6 60.4 59.7 25.6 24.7 1 5.3 7.5 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 Source JBS 23 EBITDA Margin (%)
  • Debt • The Net Debt/EBITDA reduced from 3.3x in 3Q09 to 3.1x in 4Q09. • JBS raised US$2.0 billion by issuing two million Debentures. • The company’s cash position is sufficient to cover, almost entirely, the short term debt of JBS • Current assets exceed current liabilities by almost 50%, demonstrating the liquidity of the Company’s balance sheet. Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million) 14,429.8 5,479.6 * 63% 62% 37% 38% 2009 2008 Source: JBS Short Term Long Term Net Debt/ EBITDA EBITDA pro-forma * LTM including Bertin and Pilgrim’s Pride pro-forma. 24
  • Revenue Distribution by Market 2009 2008 E x ports 23% E x ports 33% Dom e stic Ma rke t Domes tic 67% Market 77% Source: JBS Source: JBS 25
  • JBS Consolidated Exports Distribution JBS Exports 2009 JBS Exports 2008 US$ 5.0 billion US$ 5.6 billion Others Japan China Others Mexico 19% 13% 3% 15% E.U. USA 18% Taiwan 2% 11% 3% Russia China Russia Taiwan 13% 10% 4% 4% E.U, Mexico Canada Middle East Canada Japan 11% USA 8% 8% South Korea 7% 9% 8% 5% 4% Hong Kong 6% Hong Kong South Korea 5% 6% Africa and Middle East 7% Source: JBS 26
  • Short Term Outlook 27
  • A Closer look at synergies – Pilgrim’s Pride • USD 95 Million already captured, through initiatives in the personnel, transportation, and packaging supply areas. • USD 65 Million further by mid year, principally through G&A, exports, and logistic efficiencies. • USD 200 / 300 Million total annual synergies. Pilgrim’s Pride Stock Price 12 Closing of the acquisition 10 Announcement of the PPC acquisition by JBS 8 6 4 2 0 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Source: Bloomberg 28
  • A Closer look at synergies – Bertin S.A. • R$145 million implemented by end of 1Q10 in packaging, industrial processes, formulation and corporate. • R$100 million further synergies to be realized particularly at corporate and exports in the coming six months. • Total annual synergies expected to reach R$500 million by 2011. 29
  • Thank You IR Contacts: ir@jbs.com.br +55 11 3144 4055 www.jbs.com.br/ir “In God We Trust, Nature We Respect” 30 30