JBS DAYMeeting with Senior Management      São Paulo - April 06, 2011
JBS S.A.           Wesley Batista
JBS S.A.Founded in the 1950’s in West Central BrazilIPO in 2007Leading protein producer and third largest food company in ...
1 Market Leader      JBS Ranking2 Track Record   of successful   acquisitions3 Geographic and                             ...
1 Market Leader      Merger and Acquisition track record                     More than 30 acquisitions in 15 years        ...
1 Market Leader      Diversified market segments2 Track Record of   successful                                            ...
1 Market Leader      Presence in more than 100 countries, in 6 continents                     Strategic Geographical Distr...
1 Market Leader      Well-recognized Brands, symbols of quality2 Track Record of   successful   acquisitions              ...
1 Market Leader2 Track Record   of successful      Track Record of                  Geographic and                       M...
Our Strategy                                                                        RACIONALE                             ...
JBS S.A.Perspectives for the animal protein market JBS is well positioned to attend the global demand for animal protein  ...
Global consumption of animal protein has been increasingConsumption by region over the past ten years                     ...
Global beef trade                                                        Largest Beef ExportersJBS is presentin 66,0% ofEx...
Global consumption and trade of animal protein over the past 10 yearsConsumption                                          ...
Brazil, Australia and the US continue to lead global beef exportsBrazil, Australia and US represent, respectively, 27%, 18...
Chicken Exports Brazil vs USBrazil and US represent, respectively, 39% and 34% of global chicken tradeBrazilian Chicken Ex...
$   Global Surplus (deficit)    Goldman Sachs forecast for animal protein in 2020                                         ...
JBS USA          Don Jackson
JBS USA - Corporate Structure(excluding Australia)                                                JBS S.A.                ...
Overview of JBS USA(excluding Australia)                                                    JBS USA                Financi...
Significant Scale Across Multiple Locations                                                                               ...
Significant EBITDA Improvements to Come for JBS USA   Division      Opportunities                 Plant optimization: cont...
Beef Division            Bill Rupp
JBS Beef DivisionJBS domestic beef production is approximately 29 thousand head per day representing 22% domestic market s...
JBS Swift and Packerland Beef Plants                                    Grand Island, NE                      Greeley, CO ...
Customized Program SolutionsJBS beef plants are strategically located to optimize customer service and logistical efficien...
Pork Business Unit               Marty Dooley
Pork Facility/Key Locations MapJBS is the 3rd largest fresh pork processor in the US, processing 12.8M head per year and r...
Strengths & Opportunities Strengths                                              OpportunitiesLong term hog supply contrac...
Pork Sales Mix 2010                 PAGE   30
Chicken Business Unit     (Pilgrim’s Pride)                         Bill Lovette
Pilgrim’s Pride TodayJBS ownership creates uniquely positioned company with global distribution focusNet sales of $6.9 bil...
Strong #2 Player in the Global Chicken Industry       US Market Share by Production                                       ...
Margin Expansion Through Cost-Saving Initiatives      Production Initiatives                       Overhead Initiatives   ...
Integration with JBS USA Provides Further Benefits    Reduced administrative and corporate expenses                      ...
Positioned to Capitalize on Export Opportunities        PPC is bullish on 2011 and its long-term export position          ...
JBS Australia            Iain Mars
JBS Australia – plants, feedlots and distribution centers                                                                 ...
JBS Australia JBS Australia employees 8,500 people Annual Turnover A$3 billionCompetition analysis - beef                 ...
JBS Australia – Lamb (smalls)Exports and Competition analysis                                                             ...
Australia – world’s second largest exporter of beef               Australian beef exports by destination     JBS  Australi...
Top Ten Views – Benefits of JBS Acquisition in AustraliaIncreased market access- more markets and customers - part of a gl...
JBS Mercosul           Wesley Batista
JBS Mercosul – plants, feedlots and distribution centersProduction Facility in14 Brazilian States                         ...
JBS MercosulMerger with Bertin has significantly increased market share in MercosulNet sales of R$13.3 billion in fiscal 2...
JBS MercosulStrengths and opportunitiesFurther synergy capturing in 2011 (~ R$150 million)Beef herd gradually growing, esp...
Corporate Governance          &    Sustainability
Corporate GovernanceJBS is listed on the Novo Mercado, a segment in which companies are committed tofollowing a series of ...
Social, economic and environmental responsibility has always been a part of thedevelopment and business growth of JBS  Fou...
Strong action with appropriate programs for each one of JBS facilitiesPrincipal initiatives  Human Resources              ...
Strong action with appropriate programs for each one of JBS facilitiesPrincipal initiatives  Eco-efficiency               ...
Mission“To be best in what we set out to do, totally focused onour business, ensuring the best products and services     f...
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Jbs day event

  1. 1. JBS DAYMeeting with Senior Management São Paulo - April 06, 2011
  2. 2. JBS S.A. Wesley Batista
  3. 3. JBS S.A.Founded in the 1950’s in West Central BrazilIPO in 2007Leading protein producer and third largest food company in the WorldRevenues of over R$ 55 billion in 2010EBITDA of R$ 3.75 billion in 2010Organic growth of 14.2% in local currency in 2010125,000 employees worldwide134 production units in 5 continentsMarket cap of approximately USD 11.1 billion(1) (1) 31/12/2010 PAGE 3
  4. 4. 1 Market Leader JBS Ranking2 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 producer5 Synergies & Scale 3rd Largest dairy producer in Brazil 3 rd Largest pork producer in the US Source: JBS PAGE 4
  5. 5. 1 Market Leader Merger and Acquisition track record More than 30 acquisitions in 15 years 2005 JBS went international with the acquisition of Swift Argentina.2 Track Record 2007 JBS became the largest beef company in the world and the of successful biggest Brazilian company in the food industry and entered the acquisitions US pork market. Rockdale Beef 2008 Construction of a sustainable global meat Pilgrim´s Pride Inalca Tatiara Meat production and sales platform. (Swift Austrália)3 Geographic and Swift Foods Co. Merger with Bertin market segment 2009 Diversification of market segments through the Maringá (Amambay) JBS Couros diversification acquisition of Pilgrim’s Pride and merger with Bertin. Berazategui (Rio Platense) 5 new units 55,1 Colonia Caroya Tasman 2010 JBS Swift became the leader in lamb production in Australia. SB Holdings Smithfield JV Beef Jerky4 Well-recognized Rio Branco Cacoal 1 Venado Beef Five Rivers brands Cacoal 2 Tuerto Porto Velho Pontevedra 34,3 Barretos (Anglo) Vilhena (CEPA) 30,3 (Frigovira)5 Synergies & Pres. Epitácio e Campo grande Pedra Preta (Frigo Marca) Scale (Bordon) Cáceres (Frigosol) Barra do Rosário Garças San Jose 14,1 Andradina Araputanga Iturama (Sadia) (Sadia) (Frigoara) (Frigosol) (Swift Argentina) 4,3 0,3 0,4 0,4 0,5 0,5 0,4 0,7 1,2 1,5 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: JBS Net revenue (R$ billion) PAGE 5
  6. 6. 1 Market Leader Diversified market segments2 Track Record of successful Beef acquisitions3 Geographic Transportation Pork and market segment diversification4 Well-recognized Leather Chicken brands5 Synergies & Scale Dairy Biodiesel products Collagen Lamb PAGE 6
  7. 7. 1 Market Leader Presence in more than 100 countries, in 6 continents Strategic Geographical Distribution2 Track Record of successful acquisitions3 Geographic and market segment diversification4 Well-recognized brands5 Synergies & Scale 3 Pork 39 Chicken 7 Dairy 58 Distribution Center 134 Slaughterhouse and Industry 60 Beef 23 Leather 1 Vegetal Oil 7 Sales Office u Units Geographic Beef Chicken Pork Leather Dairy Lamb Presence and 84,800 heads/day 7.9 mm birds/day 50,000 heads/day 82,300 hides/day 5,400 tons/day 24,000 heads/day Production Capacity Source: JBS PAGE 7
  8. 8. 1 Market Leader Well-recognized Brands, symbols of quality2 Track Record of successful acquisitions Brazil3 Geographic and market segment diversification Argentina4 Well-recognized brands5 Synergies & Scale EUA Australia PAGE 8
  9. 9. 1 Market Leader2 Track Record of successful Track Record of Geographic and Market Leader Well-recognized acquisitions successful market segment Greater utilization of market brands acquisitions diversification and business opportunities Market expansion and3 Geographical and market Creating experience to become a leading Company in consolidating + Access to all consumer markets and reduced trade and sanitary barriers risks. + to enhance growth. + strong leadership. segment diversification the food sector globally.4 Well-recognized SYNERGY brands5 Synergies & PRODUCTION SCALE Scale Production optimization Diluted of fixed costs IMPROVED PROFITABILITY PAGE 9
  10. 10. Our Strategy RACIONALE Associating quality and branding to increase client loyalty Branding Value added products Customized and further processed products for the end users Sales and distribution platform Expanding a global distribution platform to reach end clients Production platform Financial Experienced Cost reduction, Risk Developed an efficient and Structure Management process Management diversified global production optimization platform EBITDA JBS’s Value & Strategy Margin PAGE 10
  11. 11. JBS S.A.Perspectives for the animal protein market JBS is well positioned to attend the global demand for animal protein Jeremiah O’Callaghan
  12. 12. Global consumption of animal protein has been increasingConsumption 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 PAGE 12
  13. 13. Global beef trade Largest Beef ExportersJBS is presentin 66,0% ofExport markets Others 10.0% Brazil 27.0% E.U. 1.0% Uruguay 5.0% Argentina 5.0% Canada 6.0% Australia 18.0% New Zealand 7.0% India 10.0% USA 11.0% Source: USDA PAGE 13
  14. 14. Global consumption and trade of animal protein over the past 10 yearsConsumption Trade100.000 10.000 90.000 9.000 80.000 8.000 70.000 7.000 60.000 6.000 50.000 5.000 40.000 4.000 30.000 3.000 20.000 2.000 10.000 1.000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (1000 MT CWE) (1000 MT CWE) (1000 MT)Source: USDA PAGE 14
  15. 15. Brazil, Australia and the US continue to lead global beef exportsBrazil, Australia and US represent, respectively, 27%, 18% and 11% of global beef trade Brazilian Beef Exports (tons) 1.400.000 5.500 5.000 1.200.000 4.500 1.000.000 4.000 +24.4% 3.500 800.000 3.000 +2.7% 2.500 600.000 2.000 400.000 1.500 1.000 200.000 500 0 0 2005 2006 2007 2008 2009 2010 Australian Beef Exports (tons) US Beef and Veal Exports (tons) 1.400.000 5.500 1.400.000 5.500 5.000 5.000 +11.8% 1.200.000 1.200.000 4.500 +10.9% 4.500 1.000.000 4.000 1.000.000 4.000 3.500 3.500 -1.9% 800.000 800.000 3.000 3.000 600.000 2.500 600.000 +19.5% 2.500 2.000 2.000 400.000 1.500 400.000 1.500 1.000 1.000 200.000 200.000 500 500 0 0 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Beef Exports Average Price (US$/Ton)Source: USDA, MLA and Secex PAGE 15
  16. 16. Chicken Exports Brazil vs USBrazil and US represent, respectively, 39% and 34% of global chicken tradeBrazilian Chicken Exports (tons) US Chicken Exports (tons)4.500.000 1.800 4.500.000 1.8004.000.000 +13.4% 1.600 4.000.000 1.6003.500.000 1.400 3.500.000 1.4003.000.000 +26.6% 1.200 3.000.000 1.200 -4.3%2.500.000 1.000 2.500.000 1.0002.000.000 800 2.000.000 800 -0.7%1.500.000 600 1.500.000 6001.000.000 400 1.000.000 400 500.000 200 500.000 200 0 0 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Chicken Exports Average Price (US$/Ton)Source: USDA e Secex PAGE 16
  17. 17. $ Global Surplus (deficit) Goldman Sachs forecast for animal protein in 2020 Surplus Deficit Beef & Veal Pork Chicken Source: Goldman Sachs PAGE 17
  18. 18. JBS USA Don Jackson
  19. 19. JBS USA - Corporate Structure(excluding Australia) JBS S.A. 100% JBS USA Holdings, Inc. Don Jackson – CEO André Nogueira – CFO 67% 100% Pilgrim’s Pride JBS USA, LLC Corporation  Chicken Segment – Bill Lovette  Beef Segment  US Beef – Bill Rupp  Five Rivers – Mike Thoren  Pork Segment – Marty Dooley PAGE 19
  20. 20. Overview of JBS USA(excluding Australia) JBS USA Financial Information: Holdings, Inc.  Net sales: $ 20.35 billion Beef Segment Pork Segment Chicken SegmentFinancial Information: Financial Information: Financial Information:• Net Sales: $10.45 billion • Net Sales: $3+ billion • Net Sales: $6.9 billionMarket Share: Market Share: Market Share:• Leading beef processor in the U.S. • Leading pork processor in the • Leading chicken processor in the U.S. with ~ 22% market share U.S. with 13% market share with 18% market share• Five Rivers, the largest feedlot Other Statistics: • Leading chicken processor in Mexico operation in the U.S. • Hogs Processed: 12.8 million Other Statistics:Other Statistics: • Chickens Processed: 1.8 billion• Cattle Processed: 6.8 millionSource: JBS; 2010 PAGE 20
  21. 21. Significant Scale Across Multiple Locations JBS USA Beef (19) JBS USA Pork (3) JBS USA Rendering (2) Green Bay Worthington Plainwell JBS USA Trucking (2) Depen Malta Marshalltown Seaford Greeley Pilgrims Pride Production (30) Hyrum Chicago South Salt Lake City Charleston Souderton Pilgrims Pride Further Processing (9) Yuma Grand Island Denver Manalapan JBS USA Case Ready (1) Ulysses Louisville Moorefield Lamar Mayfield Broadway JBS USA Cattle Feeding (12) Dalhart Keyes Chattanooga Batesville Gainesville Boaz Ellijay Sanford JBS USA Distribution Centers (7) Hartley Santa Fe Springs DeQueenGuntersville Marshville Cactus Mt. Pleasant Russellville D Phoenix Arlington D D Sumter JBS USA Tannery (1) McElhaney Tolleson Dallas Natchitoches Elberton Carrollton Athens Pilgrim’s Pride Distribution Centers (14) Waco Nacogdoches Douglas Canton San Antonio Lufkin Enterprise D Live Oak Lakeland McAllen Monterrey Puerto Rico D D San Luis Potosi D Queretaro DTampico Guadalajara D D Los Cues Tepeji del Rio D D DVeracruz Tlalnepantla PAGE 21 21
  22. 22. Significant EBITDA Improvements to Come for JBS USA Division Opportunities Plant optimization: continued yield improvements and cost reduction Beef Exports: improved export sales mix and market expansion Sales mix: increased proportion of value-added/branded products Chicken Plant optimization: yield improvements and cost reduction Pork Sales mix: increased proportion of value-added/branded products Total Improvements of Over $500MM in JBS USA Projected for 2011 PAGE 22
  23. 23. Beef Division Bill Rupp
  24. 24. JBS Beef DivisionJBS domestic beef production is approximately 29 thousand head per day representing 22% domestic market share Cargill ~29,000 - 22% market share Tyson ~29,000 - 22% market share JBS ~29,000 - 22% market shareOperate Five Rivers Feeding, the largest feedlot operations in the United States Manage 12 cattle feed yards with a one time capacity of 950,000/hd Provides a captive cattle supply and flexibility to perform customized feeding programs PAGE 24
  25. 25. JBS Swift and Packerland Beef Plants Grand Island, NE Greeley, CO Souderton, PAHyrum, UT Tolleson, AZ Plainwell, MI Green Bay, WI Cactus, TX PAGE 25
  26. 26. Customized Program SolutionsJBS beef plants are strategically located to optimize customer service and logistical efficienciesThe most diverse program offering in the industry with customized programs targeted to each consumer segmentResearch and development support to optimize core product performance and develop new custom products/programs Prime Angus Select Angus White Fat Cow PAGE 26
  27. 27. Pork Business Unit Marty Dooley
  28. 28. Pork Facility/Key Locations MapJBS is the 3rd largest fresh pork processor in the US, processing 12.8M head per year and representing 13% ofthe market share, with sales of $3+ billion.• 3 Pork Plants • 1 Case Ready Plant • 1 Lamb Plant – Marshalltown, IA – 20,000 hd/day – Santa Fe Springs, CA – Greeley, CO – Worthington, MN – 20,000 hd/day . – Louisville, KY – 10,000 hd/day PAGE 28
  29. 29. Strengths & Opportunities Strengths OpportunitiesLong term hog supply contracts – 73.5% Maintain hog supplyCapacity to convert a high percentage of loins, hams Increase automation in the plants to improve yieldsand bellies and reduce laborSupplier of choice with further processors such as Adding Freezer/Warehouse in MarshalltownOscar Mayer and Boarshead Will be operational in May 2011Strong partnerships with key customers such as Allows for increased space for value added inCostco, Kroger, Sysco, Shaw’s, Delhaize, Weis 2012Markets and AWG Utilize source verified livestock and traceability toOver 200MM pounds of Swift branded product sold at improve sales of chilled, frozen pork and diced/groundretail seasoned pork to Japanese marketFlexibility Increase sales of converted ribs Increase sales of value added and branded product Expand our case ready business PAGE 29
  30. 30. Pork Sales Mix 2010 PAGE 30
  31. 31. Chicken Business Unit (Pilgrim’s Pride) Bill Lovette
  32. 32. Pilgrim’s Pride TodayJBS ownership creates uniquely positioned company with global distribution focusNet sales of $6.9 billion in fiscal 2010  Adjusted EBITDA of $481.9 million, a margin of 7.0%  Produced 7.7 billion pounds of chicken42,000 employees in the U.S. and MexicoMajor facilities in 12 states, Puerto Rico and Mexico  30 fresh plants and 9 cooking facilitiesMarket cap of nearly $1.6 billion$1.3 billion in debt as of December 26, 2010JBS USA currently owns 67.3% of PPC common stock PAGE 32
  33. 33. Strong #2 Player in the Global Chicken Industry US Market Share by Production Pilgrim’s Geographic Sales Mexico 9.0% Tyson Foods 21.0% Others 33.0% Pilgrim’s Pride 18.0%Mountaire Farms 4.0% Perdue Farms 7.0% Sanderson Farms 7.0% Wayne Farms 5.0% Koch Foods 5.0% USA 91.0% FY 2010 Net Sales $6.9 billion Source: Watt Poultry USA February 2011. PAGE 33
  34. 34. Margin Expansion Through Cost-Saving Initiatives Production Initiatives Overhead Initiatives Integration with JBS Closed 10 plants or roughly 20% of  Consolidated HQ with JBS USA  Consolidated shared services functions production capacity across legal, purchasing, logistics,  Closed PPC HQ in Pittsburg, offices in administrative, insurance and IT  4.8% of industry production Dallas and Atlanta Adopted forecasted demand planning  Reduced outside cold-storage model warehouses from 51 to 17 Reopened Douglas, GA, in January as  Renegotiated professional service fees competitive large bird deboning plant PAGE 34
  35. 35. Integration with JBS USA Provides Further Benefits Reduced administrative and corporate expenses Combined Synergies - $170mm (1) as a result of integration with JBS USA Logistics 19.0% (1) 458 corporate positions eliminated in 2010 Leverage combined purchasing power to reduce supplier and logistics expenses Additional opportunities in logistics and exports to be realized in 2011 Suppliers 28.0% Administrative Expenses 41.0% Corporate 12.0%(1) Captured in SG&A savings. PAGE 35(2) PPC share of corporate and administrative expenses captured in SG&A savings.
  36. 36. Positioned to Capitalize on Export Opportunities PPC is bullish on 2011 and its long-term export position  JBS ownership has improved access to markets such as Africa and Middle East  Pilgrim’s goal is to reduce its concentration in Russian export sales by expanding into emerging markets Expansion into key export markets with value-added processed products  Leverage JBS’ international network to grow share in fast-growing export markets Top Export MarketsAfghanistan Hong Kong Saudi ArabiaAngola Iraq TaiwanCanada Lithuania TajikistanChina Mexico UkraineCuba Russia Uzbekistan PAGE 36
  37. 37. JBS Australia Iain Mars
  38. 38. JBS Australia – plants, feedlots and distribution centers 7 distribution centres situated Townsville Plant in Sydney, Melbourne, Brisbane, Perth, Adelaide, Townsville and Launceston Rockhampton Plant Beef City Plant Dinmore Plant Riverina Cobram Plant 6 cattle feedlots located in Bordertown Queensland and New South Brooklyn Plan t Wales King Island Plant Longford Plant Devonport Plant11 beef and small stock slaughtering plantslocated in New South Wales, Queensland,Victoria and Tasmania PAGE 38
  39. 39. JBS Australia JBS Australia employees 8,500 people Annual Turnover A$3 billionCompetition analysis - beef Kill Numbers Company Market Share (head/year – 000’s) JBS Australia 1,988 27% Teys 938 13% Nippon Meat 516 7% Cargill 425 6% Bindaree 293 4% PAGE 39
  40. 40. JBS Australia – Lamb (smalls)Exports and Competition analysis Others 1% Middle East 6% E.U. 6% USA 59% Japan 3% China 25% Kill Numbers Company Market Share (head/year – 000’s) T&R 4.6 15.30% JBS Australia(1) 3.5 12.00% Fletcher 2.8 9.33%Southern Meats (closed) 1.8 6.00% Colac (sold) 1.3 4.33%Castricum (closed) 1.1 3.67%(1)Considering the US facility, JBS is the largest global lamb producer. PAGE 40
  41. 41. Australia – world’s second largest exporter of beef Australian beef exports by destination JBS Australia China/HK 1.0%derives ¾ of Malaysia 1.0% Singapore 1.0%its revenues E.U. 1.0% Others 3.0% from Canada 1.0% Japan 39.0% exports Phillipines 2.0% Middle East 3.0% Indonesia 5.0% Russia 6.0% Taiwan 3.0% Korea 14.0% USA 20.0% Source: JBS PAGE 41
  42. 42. Top Ten Views – Benefits of JBS Acquisition in AustraliaIncreased market access- more markets and customers - part of a global businessMeat focused owners who have energy, passion and enthusiasm and who truly understand our businessAccess to capital for greater Capex / Investment spendOpenness in sharing of information / ideas between different JBS businesses - benchmarkingAgility and FlexibilityUtilisation of JBS worldwide purchasing powerFocus on better execution of business fundamentals - yields , costsAvailability and access to owners and senior management at all timesIncreased opportunities for professional growthFocus on organisational structure, responsibilities and accountabilities to obtain better results PAGE 42
  43. 43. JBS Mercosul Wesley Batista
  44. 44. JBS Mercosul – plants, feedlots and distribution centersProduction Facility in14 Brazilian States 34 - beef 20 - leather/ hides 7 - dairy 22 - new business units 15 - distribution centers 2 - beef 1 - beef 6 - beef 1 – can making facility PAGE 44
  45. 45. JBS MercosulMerger with Bertin has significantly increased market share in MercosulNet sales of R$13.3 billion in fiscal 2010  EBITDA of $1.3 billion, a margin of 9.7%  Slaughtered 6.8 million heads54,000 employees in Brazil, Argentina, Paraguay, and Uruguay64 Production facilities in Brazil, Argentina, Paraguay, and Uruguay  56 in Brazil  6 in Argentina  2 in Paraguay and 1 in UruguayOrganic growth for the year 2010 was 13.7% PAGE 45
  46. 46. JBS MercosulStrengths and opportunitiesFurther synergy capturing in 2011 (~ R$150 million)Beef herd gradually growing, especially in Brazil.Strong Domestic consumption across the regionExports continue strongPricing power continue robust after average price increases (domestic and exports) of 20% last yearDirect Distribution continues to grow, having captured more than 100,000 new clients in the region in 2010 PAGE 46
  47. 47. Corporate Governance & Sustainability
  48. 48. Corporate GovernanceJBS is listed on the Novo Mercado, a segment in which companies are committed tofollowing a series of rules that provide better transparency and security to investors Transparency Management and Board of Directors Good Governance Practices Board of Directors Fiscal Council Confidence 11 members 4 members Best services and products 1 president Consist of shareholders or not, liable to 5 permanent directors be elected or dismissed at any time of Solidity 5 permanent independent directors the General Meeting. Profitability Future * Board of Executive Officers Committees Elected by the board of directors, for three-year terms, and are eligible for reelection. 4 committes Audit Finance Human Resource Corporate Strategy / Sustainability PAGE 48
  49. 49. Social, economic and environmental responsibility has always been a part of thedevelopment and business growth of JBS Foundation Economic Social Environmental Risk and Crises Citizenship and Environmental Management Education Management Corporate Direction Good Practices of Human Eco-efficiency Resource Knowledge Management Sustainable Cattle Human Capital Breeding Stakeholders Development Engagement Climate Changes Premises Priorities Ecologically viable Sustainable use of the materials * Clean Development Ecologically correct Partnership with reputable organizations Mechanism **United Nations Socially responsible Health and Quality of life Framework Convention on Climate Change Culturally acceptable Climate Residue TreatmentSource: JBS Sustainability Policy PAGE 49
  50. 50. Strong action with appropriate programs for each one of JBS facilitiesPrincipal initiatives Human Resources Variable Compensation (goal oriented) Title and Salary Policy Benefit Policy PSAG (Programa de segurança de auto-gestão) – Safety Program 360º Performance Evaluation (all the levels of hierarchy of the Company) Programa Gente Nossa Exercises for laborers Mold and develop new talents through contracting trainees Social Projects Creation of JBS Institute Germinare School is a social initiative of the JBS Institute that views education as the principal instrument of transforming any society Cultural support in regional and local events Philanthropy actions Program of monitored plant visits (Community, Schools, Germinare School Universities and Associations)Source: JBS Sustainability Policy PAGE 50
  51. 51. Strong action with appropriate programs for each one of JBS facilitiesPrincipal initiatives Eco-efficiency Recycling facility at the Lins-SP and Barretos-SP plants Production of energy through sugarcane bagasse, guaranteeing lower emissions of carbon dioxide gases and reducing the consumption of non-renewable energy sources Implementation of a system to burn ingesta in 7 units and plans to expand to more units Bring all acquired units into line with JBS environmental criteria Biodigestors at the Andradina – SP unit Relations with Suppliers Take part in SLWGs (Sustainable Livestock-Raising Working), made up of producers, NGOs, financial institutions and retailers Signing of the international Pact on the Eradication of Child Slavery – UN (2005) Partnership with “Luiz de Queiroz” Agricultural College (ESALQ) to minimize the emission of greenhouse gases in the production chain Signing of the Livestock Raising Pact, an Ethos Institute Initiative entitled Sustainable Connections Sao Paulo – Amazon (2008) Field Day Partnership with EMBRAPA (the Brazilian Agriculture Institute) to provide technical support to the suppliersSource: JBS Sustainability Policy PAGE 51
  52. 52. 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.

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