2. Our Mission
To be the best at what we set out to do, totally focused on our 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 for all our
employees.
Our Values
Excellence
Planning
Determination
Discipline
Availability
Openness
Simplicity
1
5. JBS S.A. at a Glance
• Founded in the 1950’s in Central West Brazil
• IPO in 2007
• Ibovespa ticker: JBSS3
• ADR ticker: JBSAY
• Leading protein producer in the World
• Production platform in South America, North America, Europe and
Oceania
• 125,000 employees worldwide
• Market cap of approximately R$19 billion *
*Source: Bloomberg 13/05/2010
4
7. JBS S.A. Growth Through Acquisitions
EBITDA (R$mm)
Bertin Merger
CAGR (2001-2009): 62% Pilgrim ’s Pride
JBS Hides
5 new units
Tasman
Smithfield Beef
Inalca
Five Rivers
Swift Foods Co.
SB Holdings
Venado
Tuerto
Pontevedra
(CEPA)
.
2001 2006 – pre IPO 2009
% of total revenues of R$1,212mm % of total revenues of R$4.3bn % of total revenues of R$55.2bn
Industrialized/ Poultry
Further
13% Pork
Processed 23% 6%
100% 52% Industrialized/
77% Beef 29% Further
Beef Beef Processed
6
8. Global Low Cost Production Platform
3
8 33 3 1
Total Number of Plants
65
33
10 5
3 44
6
World Beef Producers World Pork Producers World Chicken Producers
Brazil
Brazil Others Brazil
Others 3%
16% 17% Others 15%
34% 34%
10% China US 10% China
17% China
48%
14% 22%
21% 5% EU 22% 12%
EU EU
US India US
7
9. Leading, Sizeable and Diversified Business Platform
Hides /
Beef Chicken Pork Dairy Lamb
Leather
1st 2nd 3rd 1st 3rd 1st
Ranking
Global Global U.S.A. Global Brazil Global
Production 65 33 3 26 7 6
Units
‘000 heads/day: mm heads/day: ‘000 heads/day: ‘000 hides/day: ‘000 tons/day: ‘000 heads/day:
41.2 55.6 1.4
1.1
Geographic 6.7
Presence
and 28.6 6.9 48.5 28.6 4.5
Installed 8.7 6.0 23.0
Capacity
3.0
1.0 0.7 1.2
Total: 90.3 Total: 7.6 Total: 48.5 Total: 91.4 Total: 1.4 Total: 27.5
Well-
Recognized
Brands
8
10. Our Strategy
Rationale
Branding • Associating quality and branding
to increase client loyalty
• Customized and further
Value added products processed products for the
end users
Sales and distribution platform • Expanding a global distribution
platform to reach end clients
• Developed an efficient
Production platform and diversified global
production platform
Cost
Financial Experienced reduction, Risk
structure management process management
EBITDA Margin optimization
JBS’ Value & Strategy
9
11. Distribution Platform with Access to Key Markets
Growth 1
-2 %
3%
4% Growth 1
9%
13 %
8%
Growth 1
Growth 1
7%
2%
25 %
8%
16 %
5% 53 Distribution Centers
Protein Consumption in Key Markets (millions of Ton, 2009E)
Europe
Asia & Middle Europe Asia & Middle Asia Europe
East East 12 51
17% 8 16% 21
13 28% 30 24%
41% Latin America Latin America
15% 59% 3%
22% 11 3
Latin America 13%
33% 28% North America
North America 10 North America
15 11
21
Total: 46 mm ton Total: 74 mm ton Total: 86 mm ton
10
1 Real growth of total consumption in tons – 2010E to 2015E
Source – OECD-FAO
13. Market Highlights
• Domestic growth in Brazil remains strong
• Grain prices are competitive
• Signs of growing importance of international trade with increased
demand in all major importing markets
• Increase in US Exports
• Declining production in Europe
12
14. Average Growth of Consumption of Animal Protein in the last 10
years
Former USSR
47.7%
EU - 27
North America
7.5% 41.4% 23.7% East Asia
Central 29% Middle East
America Southeast
Asia
70.2%
48.7%
Sub Saharan
Africa
South 32.2%
America
23.3%
Oceania
3
Source: FAPRI February 2010
13
15. 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
231 258
200
0
2003 2004 2005 2006 2007 2008 2009 2010*
E.U. Russia Egypt Venezuela Algeria USA Hong Kong Others Until March
Source: Secex
* Until March
14
16. US Beef and Veal Exports (Million Pounds)
3,000
2,520
2,412 2,467 2,449
2,500
2,269
2,000 1,888 1,867
1,500 1,433
1,146
1,000
697
461 478
500 384
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
Mexico Canada South Korea Japan Vietnam China Hong Kong Netherlands Others Until March
Source: USDA ERS
* Until March
15
17. 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
1,612 1,717
1,560
1,500 1,278 1,287
1,047
1,000
1,034
500
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*
Japan China Hong Kong Mexico Russia Canada South Korea Australia Others Until March
Source: USDA ERS
* Until March 16
18. 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
4,980 4,942 5,013 4,997
5,000
4,000
3,000
2,000
1,508
1,754
1,000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 *
2010
Russia China (Mainland) Iraq Mexico Canada Cuba Other Chicken Others Until March
Source: USDA ERS
* Until March 17
19. Beef & Veal – Supply and Demand in 2020
Global Surplus (Deficit) of Beef & Veal (Million metric tons)
USA 1.2 Europe 0.2 China
1.5 0.8 0.5
12.7 13.0 8.0 8.6 8.6 8.1
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
Argentina & Uruguay Surplus
0.4 Deficit
3.6 3.2
Production Imports Exports Consumption
Brazil India Australia
0.2
5.1 0.5
14.3 4.1
9.4 3.6 2.4 1.6
0.8
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
Source: Goldman Sachs
18
20. Chicken – Supply and Demand in 2020
Global Surplus (Deficit) of Chicken (Million metric tons)
Europe Russia China 0.2
1.1 0.9
1.2 19.2 20.0
8.9 9.1 3.4
2.2
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
USA Surplus
4.1 Deficit
19.1 15.1
Production Imports Exports Consumption
Brazil India Thailand
6.9
0.8
16.2 1.9
9.4 3.7 3.7 1.0
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
Source: Goldman Sachs
19
21. Pork – Supply and Demand in 2020
Global Surplus (Deficit) of Pork Meat (Million metric tons)
Canada Europe Russia
1.1
0.1 1.1
0.3
1.3 22.7 21.6 3.8
2.2 2.7
1.2
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
USA Surplus
0.5 Deficit
2.5
11.9 9.9
Production Imports Exports Consumption
Mexico Brazil China
0.3 0.8
0.7 0.2 1.2
56.9 56.4
1.6 2.1 4.2 3.0
Production Imports Exports Consumption Production Imports Exports Consumption Production Imports Exports Consumption
Source: Goldman Sachs
20
23. Highlights for the 1st Quarter 2010
• Net Revenue increased by 35.4%, from R$9,267.9 million in 1Q09 to R$12,550.3
million in 1Q10, mainly due to the incorporation of Bertin and acquisition of Pilgrim’s
Pride.
• The 1Q10 consolidated EBITDA increased 307.5% compared to the same period in
2009, from R$211.5 million to R$862.0 million. The EBITDA margin was 6.9% for the
period, compared with 2.3% for 1Q09.
• Net Profit of R$99.4 million in 1Q10, compared to a net loss of R$322.7 million in
1Q09.
• Beef US posted EBITDA of US$170.5 million, on margin of 6.0%, a record for 1Q.
• In Mercosul, JBS posted EBITDA of R$352.6 million, with 11.9% margin.
22
25. Performance by Business Units
JBS MERCOSUL INALCA JBS
Net Sales Net Sales
(R$ billion) (€ million)
EBITDA (R$ mi) EBITDA EBITDA (€ mi)
margin EBITDA margin
Source JBS
24
EBITDA Margin (%)
26. Performance by Business Units
JBS USA (Beef) Pilgrim’s Pride Corporation
Including Australia JBS USA (Pork)
Net Sales Net Sales Net Sales
(US$ billion) (US$ million) (US$ million)
EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (US$ mi)
EBITDA margin EBITDA margin EBITDA margin
Source JBS
25
EBITDA Margin (%)
27. Debt
• Net debt / EBITDA ratio remained at 3.1x q-o-q. Gross debt declined 5.7%, while Net Debt
increased 12.2%, reflecting working capital requirements to ramp up recent acquisitions, as well
as investments in fixed assets, further impacted by FX fluctuations.
• The vast majority of the company’s short term debt is composed of revolving trade finance credit
lines.
• As demonstrated below, the percentage of short term debt was 40% in 1Q10, compared with
37% in 4Q09 and 47% in 1Q09.
Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million)
*
Source: JBS
Net Debt/ EBITDA EBITDA pro-forma
* LTM including Bertin and Pilgrim’s Pride pro-forma.
26
29. JBS Consolidated Exports Distribution
JBS Exports 1Q10 JBS Exports 1Q09
US$ 1,765.4 Million US$ 901.4 Million
Taiwan Others Japan
2% 14%
Middle East 16%
4% E.U.
Canada 16%
4% China
5% South Korea USA
Hong Kong Russia
6% Mexico 11%
5% 8% 9%
Source: JBS 28
31. A Closer look at synergies – Pilgrim’s Pride
Pilgrim’s Pride Acquisition: Synergies of over US$220mm/year
Description Size Timing
Transportation Review of contract terms with carriers US$35mn
Suppliers Review of contract terms with packaging and other suppliers US$30mn
Corporate Streamlining of corporate structure and headquarters closure US$35mn 1H10
G&A Review of service contracts (e.g. Legal, insurance and IT) US$50mn 1H10
Logistics optimization Increase efficiency in average weight per truck US$50mn 2 years
Exports Reach-out to end clients through JBS existing sales network US$20mn 2010
Total US$220mn
30
32. A Closer look at synergies – Bertin S.A.
Association with Bertin: Synergies to Achieve at Least R$485mm/year
Description Size Timing
Corporate/G&A Offices, personnel, services contracts and third parties R$40mn
Exports Maximization of the combined sales channels and review of freight contracts R$100mn
Hides / Leather Value enhancement through further processing R$45mn
1H10
Logistics Review of transportation contracts R$20mn 1H10
Suppliers Review contract terms of non core suppliers (e.g. packaging) R$35mn 2 years
Industrial Processes Optimization of fixed costs and rationalization of existing contracts R$245mn 2010
Total R$485mn
31
