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 leather processor4 Well-recognized brands 2 nd Largest global chicken producer 3rd Largest dairy producer in Brazil 3 rd Largest pork producer in the US Source: JBS PAGE 3
Well-recognized Brands, symbols of quality1 Market Leader2 Track Record of successful acquisitions Brazil3 Geographic and market segment diversification Argentina4 Well-recognized brands USA Australia PAGE 4
2011 and 4Q11 Highlights
2011 Highlights JBS posted consolidated net revenue of R$61.8 million, 13% higher than 2010. EBITDA was R$3.15 billion, a decrease of 16.3% over 2010, due to the negative result from Pilgrim’s Pride. The EBITDA margin was 5.1%. JBS USA Beef, including Australia, presented revenue of US$16.5 billion in the year, an increase of 25.6% over 2010. The EBITDA was US$739.1 million, 11.4% higher than 2010. JBS USA Pork business unit net revenue totaled US$3.5 billion, 17.5% higher than 2010. The EBITDA was US$338.2 million, 22.2% higher when compared to the previous year. JBS Mercosul posted net revenue of R$14.9 billion, an increase of 11.9% year over year. The EBITDA increased 23.9% over the same period and was R$1.6 billion. JBS generated net cash from operating activities in 2011 of R$606.5 million. The loss in the period was R$75.5 million, caused by Pilgrim’s Pride (PPC) that represented US$495.7 million in 2011. Excluding this item, net income would have been R$482.6 million approximately. The Company ended the quarter with R$5.3 billion in cash or cash equivalent, equivalent to 100% short-term debt. The Indebtedness level remained stable at 3.0x, excluding PPC. PAGE 6
Revenue and EBITDA Distribution by Business Unit 2011 Net Revenue - 2011 20% 25% 10% 45% EBITDA – 2011 -10% 50% 19% 41%Source: JBS PAGE 10
Organic Growth Each business unit presented double digit organic growth in their local currency, for the analyzed period. JBS USA Beef – Net Revenue (US$ million) JBS USA Chicken – Net Revenue (US$ million)4.600 2.1004.4004.200 2.0004.0003.800 1.9003.6003.400 1.8003.2003.000 1.7002.8002.600 1.600 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 JBS USA Pork – Net Revenue (US$ million) JBS Mercosul – Net Revenue (R$ million)950 4.000900 3.800850800 3.600750 3.400700650 3.200600 3.000550500 2.800 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11Source: JBS PAGE 11
JBS Consolidated Exports Distribution in 2011 Approximately US$ 9.6 billion in 2011 Africa and Middle East 17.4% Others 18.0% China, Hong Kong and Vietnam 12.5% Taiwan 2.0% US$ 9,581.0 Canada 3.3 % million Mexico 10.9%South Korea 4.6% Japan 10.2% Russia 8.4% E.U 8.8% Source: JBS PAGE 12
Debt ProfileNet debt to EBITDA, excluding Pilgrim’s Pride Corp. (PPC)*, remained stable from 3Q11 at 3.0x.Net debt to EBITDA, including Pilgrim’s Pride Corp. (PPC)*, remained stable from 3Q11 at 4.0x.The Company ended the quarter with R$5.3 billion in cash or cash equivalents, equivalent to 100% of the Company’s short-term debt.The Company generated R$606,5 million of operating cash flow in 2011.Leverage ST / LT Debt Profile1500 4.0 4.0x 4,0 4Q11 28% 72%1300 3.6 3.1 3.2 3Q11 28% 72%1100 3.0 3.0 3.0x 3,0 900 2Q11 27% 73% 700 2,0 500 1Q11 30% 70% 300 1,0 100 4Q10 33% 67% -100 4Q10 1Q11 2Q11 3Q11 4Q11 0,0 . Leverage EBITDA Short Term Long Term . Leverage Ex-PPC EBITDA Ex-PPCSource: JBS PAGE 13* subsidiary controlled by JBS with non-recourse debt.
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). JBS contains a database of almost 12,000 cattle ranches registered in the Amazon Biome. After the property coordinates are collected, the data is keyed into 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 image Institute for Space Research – INPE. Source: JBS Sustainability Policy (1)Real Time Deforestation Detection PAGE 14 (2)Legal Amazon Deforestation Monitoring Project
Mission“To be best in what we set out to do, totally focused onour 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.