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Presentation 2 q12 conference call v1(1) Presentation Transcript

  • 1. JBS S.A.Results Presentation 2Q12
  • 2. JBS S A S.A.
  • 3. JBS Ranking1 Market Leader2 Track Record of successful acquisitions3 Geographic and 1 st Largest global beef and market segment lamb producer diversification 1 st Largest global leather4 Well-recognized processor brands 1 st Largest global chicken producer 3 rd Largest pork p g p producer in the US Source: JBS PAGE 3
  • 4. Our Strategy RATIONALE Branding Associating quality and branding to increase client loyalty y y Customized and further processed Value added products products for the end users Expanding a global distribution Sales and distribution platform platform to reach end clients Developed an efficient and p Production platform diversified global production platform Financial Experienced Cost reduction, Risk Structure Management g p process Management g optimization EBITDA JBS’s Value & Strategy Margin PAGE 4
  • 5. Well-recognized Brands, symbols of quality1 Market Leader2 Track Record of successful acquisitions Brazil B il3 Geographic and market segment diversification Argentina g4 Well-recognized brands USA Australia PAGE 5
  • 6. Perspectives for the animal protein market
  • 7. World’s Food* Surpluses and DeficitsNet intra-regional trade, million tonnes Central Western Middle East America Europe Asia A i & Africa North South Australia America America Eastern Europe and former Soviet Union 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. PAGE 7 Source: The Economist
  • 8. Global Protein Consumption Growth by Species Strong Global Industry Fundamentals (MT in mm)250200150100 50 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Source: USDA FAS PAGE 8
  • 9. Brazil, Australia and the US continue to lead global beef exports Brazilian Beef Exports (tons) 1.400.000 5.500 -2.7% 5.000 1.200.000 4.500 4 500 1.000.000 4.000 3.500 800.000 3.000 600.000 2.500 1.6% 1 6% 2.000 2 000 400.000 1.500 1.000 200.000 500 0 0 2006 2007 2008 2009 2010 2011 1S11 1S12 Australian Beef Exports (tons) US Beef and Veal Exports (tons) 1.400.000 5.500 1.400.000 6.500 6.000 1.2% 5.000 17.0% 1.200.000 1.200.000 5.500 4.500 5.000 1.000.000 4.000 1.000.000 4.500 3.500 4.000 800.000 800.000 3.000 3.500 2.500 3.000 600.000 -0.2% 600.000 -11.4% 2.000 2 000 2.500 400.000 1.500 400.000 2.000 1.500 1.000 200.000 200.000 1.000 500 500 0 0 0 0 2006 2007 2008 2009 2010 2011 1S11 1S12 2006 2007 2008 2009 2010 2011 1S11 1S12 Beef and Veal exports Average Price (US$/Ton)Source: USDA, MLA & Secex PAGE 9
  • 10. Chicken Exports Brazil vs USBrazilian Chicken Exports (tons) USA Chicken Exports (tons)4.500.000 2.200 4.500.000 1.8004.000.000 -6.5% 2.000 4.000.000 1.600 1.8003.500.000 3.500.000 1.400 1.600 1 6003.000.000 3.000.000 13.1% 1.200 1.4002.500.000 1.200 2.500.000 1.0002.000.000 3.4% 1.000 2.000.000 800 13.3% 8001.500.0001 500 000 1.500.000 1 500 000 600 6001.000.000 1.000.000 400 400 500.000 200 500.000 200 0 0 0 0 2006 2007 2008 2009 2010 2011 1S11 1S12 2006 2007 2008 2009 2010 2011 1S11 1S12 Chicken Exports Average Price (US$/Ton)Source: USDA & Secex PAGE 10
  • 11. Pork Exports US vs BrazilBrazilian Pork Exports (tons) USA Pork Exports (tons)1.800.000 3.500 1.800.000 3.500 -7.2% 3.000 1.8% 3.0001.500.000 1.500.000 2.500 2 500 2.500 2 5001.200.000 1.200.000 2.000 2.000 900.000 900.000 21.2% 1.500 1.500 600.000 600 000 600.000 600 000 1.000 1.000 300.000 0.5% 300.000 500 500 0 0 0 0 2006 2007 2008 2009 2010 2011 1S11 1S12 2006 2007 2008 2009 2010 2011 1S11 1S12 Pork Exports Average Price (US$/Ton)Source: USDA & Secex PAGE 11
  • 12. 2Q12 Highlights Hi hli ht
  • 13. 2Q12 HighlightsJBS 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 , p pmargin 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 (Pilgrim’s Pride Corporation) posted net revenue of US$2.0 billion and EBITDA of US$125.7 (Pilgrim smillion 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 bygoodwill (this only generates effective income tax payment if the company sells the investment that generatedgoodwill). Consolidated reported net income was R$169.5 million.The Company ended the quarter with R$5.475 billion in cash or cash equivalent, corresponding to more than 110%of short-term debt. PAGE 13
  • 14. JBS Consolidated Results – 2Q12 EBITDANet Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) 18,468.3 1800,0 8,0 16,934.5 15,567.8 16,011.1 1600,0 5.6 5.5 5.1 14,116.3 4.0 4.3 1400,0 +10.3% +10 3% +8.8% +8 8% -5.5% +15.3% 1200,0 1200 0 1,012.8 1000,0 940.6 786.8 800,0 696.5 587.7 600,0 +33.9% 33.9% +19.5% 19.5% -26.0% 26.0% +45.4% 45.4% 400,0 200,0 0,0 -12,0 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 EBITDA M i (%) MarginSource: JBS PAGE 14
  • 15. Quarterly Analysis Performance by Business Unit JBS Mercosul JBS USA JBS USA JBS USA (PPC) (Including Australia) (I l di A t li ) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) 4.3 1300,0 1220,0 4.5 1140,0 4.3 43 1060,0 923.1 855 4 844 0 855.4 844.0 3.9 3.8 3.8 4.2 980,0 846.0 867.1 2.0 4.1 900,0 2.0 1.9 1.8 1.9 4.0 820,0 3.6 740,0 660,0 580,0 500,0 420,0 340,0 260,0 180,0 100,0 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million) 500 16,0% 14,0% 14.6% 12,0% 199,977 9.9% 11.8% 11.6% 13.3%800 16,0% 8.8% 500 5.0% 10,0% 13,0% 10.7% 14,0% 400 4.4% 8,0% 8.3% 6.4% 9,0%700 630.3 6.5% 5.8% 9,0% 5.5% 7,0% 1.1% 6,0% 12,0% -1.1% -0.2% 4,0% 400 5,0% 10,0% 5,0%600 508.6 2,0% 1.2% 3,0% 453.8 8,0% 300 0,0%500 427.9 407.7 6,0% 223.6 -2,0% 1,0% 300 -2.4% -1.7% 1,0%400 4,0% 200 184.1 -4,0% -6,0% 99,977 83.6 75.9 77.0 -3,0% -1,0% -3,0% 2,0% -8,0% -7,0% 0,0% 55.8 55 8 49.2 49 2 200 -5,0% -5 0% 104.0 12 125.7300 -10,0% -11,0% -2,0% -12,0% -7,0% 22.6200 -14,0% 44.7 -4,0% 100 -9,0% -15,0% -16,0% 100100 -6,0% -8,0% -45.4 -9.1 -18,0% -19,0% -47.6 -31.4 -11,0% -20,0% -13,0% -22,0% 0 -10,0% 0 -0,023 -23,0% 0 -15,0% -24,0% 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 -17,0% -26,0% -19,0% -28,0% -100 -100 -30,0% -21,0% -23,0% -200 -25,0% EBITDA Margin (%) Source: JBS PAGE 15
  • 16. JBS Consolidated Exports Distribution in 1S12Approximately US$4.4 billion Mexico 15.5% Others 15.1% Venezuela 1.9% China, Hong Kong and Taiwan 2.1% Vietnam 14.6% Chile 3.6% US$4,387 million Canada 4.8% Japan 11.7% E.U 6.1% Russia 9.3% South Korea 6.2% Africa and Middle East 9.1%Source: JBS PAGE 16
  • 17. Debt Profile2Q12 Net debt to EBITDA was 4.27x.The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 110% of short-term debt.The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12 Leverage g ST / LT Debt Profile 1500 4.30 4.27 28% 72% 1300 4.04 4.00 4 3Q11 3.60 1100 900 3 4Q11 28% 72% 700 2 1Q12 27% 73% 500 300 1 100 2Q12 23% 77% -100 2Q11 3Q11 4Q11 1Q12 2Q12 0 . Leverage EBITDA Short Term Long Term .Source: JBS PAGE 17
  • 18. Debt ProfileAnalysis of Consolidated Net Debt in USDConverting the Companys total net debt from Real to U.S. Dollar to analyze the evolution of debt without the effects of exchange ratevariations, considering that a significant portion of the debt and revenues come from JBSs overseas operations, a reduction of 3.0% ofdebt in USD can be observed in the last twelve months months. R$ million 2Q11 3Q11 4Q11 1Q12 2Q12 Consolidated Net Debt in R$ 12.164,1 13.654,4 13.584,0 13.924,7 15.276,9 Exchange Rate 1,5611 1,8544 1,8758 1,8221 2,0213 Consolidated Net Debt in US$ 7.792,0 7.363,2 7.241,7 7.642,1 7.558,0Source: JBS PAGE 18
  • 19. JBS actions related to cattle traceability and the Amazon Biome Sustainability EnvironmentalJBS SA participates in CDP - Carbon Disclosure Project.Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.Satellite image monitoring of the Amazon BiomePurpose: reduce deforestation in the Amazon Biome; avoidpurchasing cattle from Environmentally Protected Areas – EPAs,Indigenous reserves and protected areas; eradication of slavelabor in Brazil. AmazonSocial & Environmental JBS Brazil monitors a 100% of its cattle suppliers properties via satellite geo-referencing (GPS monitoring) geo referencing monitoring). JBS contains a database of almost 12,000 cattle ranches registered in the Amazon Biome. After h Af the property coordinates are collected, the d di ll d h data iis k d iinto keyed JBS’s 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 Brazil’s National Satellite i S lli image Institute for Space R I tit t f S Research – INPE h INPE. Source: JBS Sustainability Policy (1)Real Time Deforestation Detection PAGE 19 (2)Legal Amazon Deforestation Monitoring Project
  • 20. Mission“To be best iin whatt we sett outt tto d totally focused on h do,our business, ensuring the best products and services for our customers, solidity for our suppliers suppliers, satisfactory profitability for our shareholders and the certainty of a better future to all our employees. ”