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Presentation jbs sep oct english 2 q12
 

Presentation jbs sep oct english 2 q12

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    Presentation jbs sep oct english 2 q12 Presentation jbs sep oct english 2 q12 Presentation Transcript

    • JBS S.A.October / November, 2012
    • JBS S.A.
    • JBS S.A. at a glanceFounded in the 1950’s in Midwest of BrazilIPO in 2007Leading protein producer in the WorldNet Revenue of R$34.5 billion in 1st semester of 2012EBITDA of R$1.7 billion in 1st semester of 2012Net revenue organic growth of 18% in 1st semester of 2012135,000 employees worldwide301 production units in 5 continents PAGE 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 producer in the US Source: JBS PAGE 4
    • Merger and Acquisition track record1 Market Leader More than 30 acquisitions in 15 years 2005 JBS went international with the acquisition of Swift Argentina.2 Track Record of 2007 JBS became the largest beef company in the world and the 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 Pride3 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 31.14 Well-recognized Rio Branco JV Beef Jerky brands Cacoal 1 Venado Smithfield 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 PAGE 5
    • Diversified market segments1 Market Leader2 Track Record of successful Beef acquisitions Transportation3 Geographic and Pork market segment diversification4 Well-recognized Leather brands Chicken Biodiesel Lamb Collagen PAGE 6
    • Presence in more than 100 countries, in 5 continents1 Market Leader Strategic Geographical Distribution2 Track Record of successful acquisitions3 Geographic and market segment diversification4 Well-recognized brands 2 Biodiesel Slaughterhouses and 3 Pork 39 Chicken 64 Distribution Center 301 Production Units 61 Beef 6 Lamb 29 Leather 17 Sales Office Geographic Beef Chicken Pork Leather Lamb Presence and 81,400 heads/day 8.3 mm birds/day 50,100 heads/day 86,300 hides/day 18,265 heads/day Production Capacity Source: JBS PAGE 7
    • Our Strategy RATIONALE Branding Associating quality and branding to increase client loyalty 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 Production platform diversified global production platform Financial Experienced Cost reduction, Risk Structure Management process Management optimization EBITDA JBS’s Value & Strategy Margin PAGE 8
    • 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 9
    • Perspectives for the animal protein market
    • Global consumption of animal protein has been increasingConsumption growth by region over the past ten years North AsiaNorth America E.U. - 27 +3.0% +47.7% +7.5% Middle East +41.4% +23.7% East AsiaCentral America +29% +70.2% Southeast Asia +48.7% +32.2% South America Oceania +23.3% AfricaSource: Rabobank, 2010. PAGE 11
    • World’s Food* Surpluses and DeficitsNet intra-regional trade, million tonnes Central Western Middle East America Europe Asia & 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 12 Source: The Economist
    • Global Protein Consumption Growth by Species Strong Global Industry Fundamentals (MT in mm)25020015010050 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Source: USDA FAS PAGE 13
    • Global Beef TradeLargest Beef Exporters Others 12% Brazil 17%Argentina 3% Uruguay 4% Canada 5% Australia 17% E.U 6% New Zealand 6% USA 16% India 14%Source: USDA 2011 (Estimated) PAGE 14
    • 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 1.000.000 4.000 3.500 800.000 3.000 600.000 2.500 1.6% 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 2.500 400.000 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 15
    • 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 1.6003.000.000 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% 8001.500.000 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$/Ton)Source: USDA & Secex PAGE 16
    • Pork Exports US vs BrazilBrazilian Pork Exports (tons) USA Pork Exports (tons)1.800.000 3.500 1.800.000 3.500 -7.2% 3.000 3.0001.500.000 1.500.000 1.8% 2.500 2.5001.200.000 1.200.000 2.000 2.000 900.000 900.000 21.2% 1.500 1.500 600.000 600.000 1.000 1.000 300.000 0.5% 300.000 500 500 0 0 0 0 2006 2007 2008 2009 2010 2011 1S11 1S12 2006 2007 2008 2009 2010 2011 1S11 1S12 Pork Exports Average Price (US$/Ton)Source: USDA & Secex PAGE 17
    • Global Surplus (deficit)Goldman Sachs forecast for animal protein in 2020 Surplus Deficit Beef & Veal Pork ChickenSource: Goldman Sachs PAGE 18
    • 2Q12 Highlights
    • 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. EBITDAmargin 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$125.7million 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$5.475 billion in cash or cash equivalent, corresponding to more than 110%of short-term debt. PAGE 20
    • JBS Consolidated Results – 2Q12 EBITDANet Revenue (R$ 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% +8.8% -5.5% +15.3% 1200,0 1,012.8 1000,0 940.6 786.8 800,0 696.5 587.7 600,0 +33.9% +19.5% -26.0% +45.4% 400,0 200,0 0,0 -12,0 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 EBITDA Margin (%)Source: JBS PAGE 21
    • Quarterly Analysis Performance by Business Unit JBS Mercosul JBS USA JBS USA JBS USA (PPC) (Including Australia) 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 1060,0 923.1 855.4 844.0 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% 427.9 453.8 407.7 8,0% 300 0,0% 223.6 1,0%500 6,0% -2,0% 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% 55.8 49.2 200 -5,0% 104.0 125.7 0,0%300 -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 22
    • 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 23
    • Debt Profile2Q12 Net debt to EBITDA was 4.27x.The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 110% of short-term debt.The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12 Leverage ST / LT Debt Profile 1500 4.30 4.27 28% 72% 1300 4.04 4.00 4 3Q11 3.60 1100 900 3 4Q11 28% 72% 700 2 1Q12 27% 73% 500 300 1 100 2Q12 23% 77% -100 2Q11 3Q11 4Q11 1Q12 2Q12 0 . Leverage EBITDA Short Term Long Term .Source: JBS PAGE 24
    • Debt Maturity Schedule and Profile Net Debt: 15,276.9 (R$ million) Short Term Net of Cash 2013 2014 2015 2016 2017 2018 2019 and after 656 169 883 1,381 2,567 2,738 3,726 4,469 Breakdown by Currency and Company Bonds / Other JBS S.A. Subsidiaries 2Q12 57% 43% Bonds Other 2Q12 37% 63% 2Q12 R$ 25% USD 75%Source: JBS Financial Statements 2Q12 PAGE 25
    • JBS Institute funds Germinare School Social Responsibility Social GERMINARE SCHOOL Started in 2010 Germinare School is a social initiative of the JBS Institute which looks at Education as the principal instrument to transform society. Purpose: to prepare well-educated and well-rounded citizens with a broad cultural repertoire, sound ethical values and a positive attitude toward life and society. Classroom SocialNumber of students (2011): 270Capacity of 630 students.Top Brazilian professors.Area: 6,000 m2Sport complex, swimming pool, computer lab and chemistry lab.Selection process: tests and group dynamics.Amount invested: R$15 million Laboratory Source: JBS PAGE 26
    • 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 27 (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.