JBS S.A.Results Presentation        1Q11
JBS S.A.
JBS S.A. at a glanceFounded in the 1950’s in West Central BrazilIPO in 2007Leading protein producer and third largest food...
JBS Ranking1 Market Leader2 Track Record   of successful   acquisitions3 Geographic and                                   ...
Merger and Acquisition track record1 Market Leader      More than 30 acquisitions in 15 years                        2005 ...
Presence in more than 100 countries, in 6 continents1 Market Leader      Strategic Geographical Distribution2 Track Record...
Well-recognized Brands, symbols of quality1 Market Leader2 Track Record of   successful   acquisitions                    ...
Perspectives for the animal protein market
Global Protein Consumption GrowthStrong Global Industry Fundamentals(MT in mm)300250200150100 50   0       1960           ...
Global Protein Trade Continues to GrowJBS Has Presence in Markets That Represent Nearly 64% of Global Trade  (MT in ‘000s)...
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...
Pork Exports US vs BrazilUS and Brazil represent, respectively, 32% and 11% of global pork tradeBrazilian Pork Exports (to...
1Q11 HighlightsNet income was R$147.0 million in the period
1Q11 Highlights Net revenue in 1Q11 was R$14,672.7 million, 20.2% higher than 1Q10. Net income in 1Q11 was R$147.0 million...
JBS Consolidated Results – 1Q11                                                                                     EBITDA...
JBS Mercosul25% of JBS S.A. Net Revenues. R$ million                                    1Q11      4Q10                    ...
JBS USA Beef (including Australia)43% of JBS S.A. Net Revenues.US$ million                                    1Q11      4Q...
JBS USA Pork  10% of JBS S.A. Net Revenues.       US$ million                                     1Q11      4Q10          ...
JBS USA Chicken22% of JBS S.A. Net Revenues.US$ million                                    1Q11       4Q10                ...
Revenue and EBITDA Distribution by Business Unit                 Revenue                    21.9%                         ...
Organic Growth 2009 / 2010  Each business unit presented double digit organic growth in their local currency, for the peri...
JBS Consolidated Exports Distribution         Others 14.0%            Africa and Middle East 15.9%                        ...
Debt ProfileThe ratio of net debt to EBITDA was 3.1x in the 1Q11, compared with 3.0x in 4Q10.The slight increase in debt r...
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 presentation -_results_1_q11

  1. 1. JBS S.A.Results Presentation 1Q11
  2. 2. JBS S.A.
  3. 3. JBS S.A. at a glanceFounded in the 1950’s in West Central BrazilIPO in 2007Leading protein producer and third largest food company in the WorldRevenues of over R$ 54 billion in 2010EBITDA of R$ 3.76 billion in 2010Organic growth of 14.2% in local currency in 2010125,000 employees worldwide134 production units in 5 continentsMarket cap of approximately R$ 15.1 billion(1) (1) 31/03/2011 PAGE 3
  4. 4. 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 4
  5. 5. 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 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) Pres. Epitácio e Pedra Preta Campo grande (Frigo Marca) (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 Net revenue (R$ billion) Source: JBS PAGE 5
  6. 6. Presence in more than 100 countries, in 6 continents1 Market Leader Strategic Geographical Distribution2 Track Record of successful acquisitions3 Geographic and market segment diversification4 Well-recognized brands 3 Pork 39 Chicken 7 Dairy 58 Distribution Center 144 Slaughterhouse and Industry 60 Beef 23 Leather 1 Biodiesel 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 6
  7. 7. Well-recognized Brands, symbols of quality1 Market Leader2 Track Record of successful acquisitions Brazil3 Geographic and market segment diversification Argentina4 Well-recognized brands EUA Australia PAGE 7
  8. 8. Perspectives for the animal protein market
  9. 9. Global Protein Consumption GrowthStrong Global Industry Fundamentals(MT in mm)300250200150100 50 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 Historical ForecastSource: Historical figures per USDA FAS. Projected and forecasted data per OECD estimates. PAGE 9
  10. 10. Global Protein Trade Continues to GrowJBS Has Presence in Markets That Represent Nearly 64% of Global Trade (MT in ‘000s)25,000 23,513 22,707 22,959 21,714 20,688 19,750 19,83920,000 17,954 17,219 16,359 15,07415,000 13,989 14,282 15,112 14,993 14,558 14,587 13,874 12,661 12,82810,000 11,022 10,330 9,543 JBS 8,777 Market 7,824 Presence 7,218 64% 5,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010P 2011F Historical ForecastSource: USDA FAS. PAGE 10
  11. 11. 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 +35.5% 4.500 1.000.000 4.000 3.500 800.000 3.000 600.000 2.500 -10.5% 2.000 400.000 1.500 1.000 200.000 500 0 0 2005 2006 2007 2008 2009 2010 1Q10 1Q11 Australian Beef Exports (tons) US Beef and Veal Exports (tons) 1.400.000 5.500 1.400.000 5.500 5.000 5.000 1.200.000 1.200.000 +15.1% +11.1% 4.500 4.500 1.000.000 4.000 1.000.000 4.000 3.500 3.500 800.000 800.000 3.000 3.000 600.000 2.500 600.000 2.500 2.000 2.000 400.000 1.500 400.000 1.500 +12.2% 1.000 1.000 200.000 200.000 -18.3% 500 500 0 0 0 0 Beef Exports Average Price (US$/Ton)Source: USDA, MLA and Secex PAGE 11
  12. 12. Chicken Exports Brazil vs USBrazil and US represent, respectively, 39% and 34% of global chicken tradeBrazilian Chicken Exports (tons) US Chicken Exports (tons)4.500.000 1.800 4.500.000 1.800 +18.2%4.000.000 1.600 4.000.000 1.6003.500.000 1.400 3.500.000 1.4003.000.000 1.200 3.000.000 1.200 +1.7%2.500.000 1.000 2.500.000 1.000 2.000.000 8002.000.000 800 1.500.000 6001.500.000 600 +10.2% 1.000.000 4001.000.000 400 +6.1% 500.000 200 500.000 200 0 0 0 0 2005 2006 2007 2008 2009 2010 Jan-Feb Jan-Feb 2005 2006 2007 2008 2009 2010 1Q10 1Q11 10 11 Chicken Exports Average Price (US$/Ton)Source: USDA e Secex PAGE 12
  13. 13. Pork Exports US vs BrazilUS and Brazil represent, respectively, 32% and 11% of global pork tradeBrazilian Pork Exports (tons) US Pork Exports (tons) 3.000 3.0001.400.000 1.400.000 +8.0% +12.7% 2.500 2.5001.200.000 1.200.0001.000.000 2.000 1.000.000 2.000 800.000 800.000 1.500 1.500 600.000 600.000 1.000 1.000 400.000 400.000 +13.4% 500 -7.1% 500 200.000 200.000 0 0 0 0 2005 2006 2007 2008 2009 2010 Jan-Feb Jan-Feb 2005 2006 2007 2008 2009 2010 1Q10 1Q11 10 11 Chicken Exports Average Price (US$/Ton)Source: USDA e Secex PAGE 13
  14. 14. 1Q11 HighlightsNet income was R$147.0 million in the period
  15. 15. 1Q11 Highlights Net revenue in 1Q11 was R$14,672.7 million, 20.2% higher than 1Q10. Net income in 1Q11 was R$147.0 million, an increase of 47.9% compared to the 1Q10. EBITDA was R$ 835.9 million with an EBITDA margin of 5.7%.The main operating highlighs were: Exports increased more than 17% in JBS USA Beef presented EBITDA of 1Q11 compared to 1Q10, reaching US$269.7 million, 58.2% superior than 1Q10 US$2.45 billion for the period. and EBITDA margin of 7.4%. JBS USA Pork presented EBITDA of US$105.3 million, 201.7% superior JBS Mercosul presented EBITDA of than 1Q10 and EBITDA margin of US$308.3 million and EBITDA margin of 12.6%. 8.6%. PAGE 15
  16. 16. JBS Consolidated Results – 1Q11 EBITDANet Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) 1800,0 8,0 7,1 7,1 7,3 14.672,7 1600,0 6,0 5,7 14.116,3 14.069,6 14.319,6 12.207,3 -0.3% +1.8% 1400,0 +2.5% +15.6% 1200,0 1.026 1.000 1000,0 862 + 16.0% 866 836 +2.6% 800,0 + 116.7% -3.4% 600,0 400,0 200,0 0,0 -12,0 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 EBITDA Margin (%)Source: JBS PAGE 16
  17. 17. JBS Mercosul25% of JBS S.A. Net Revenues. R$ million 1Q11 4Q10 ∆% 1Q10 ∆% Heads slaughtered (thousand) 1,747.1 1,585.0 10.2% 1,722.4 1.4% Net Revenue 3,604.2 3,362.8 7.2% 2,822.7 27.7% EBITDA 308.3 238.8 29.1% 362.7 -15.0% EBITDA margin % 8.6% 7.1% 12.8% Net sales (R$ billion) EBITDA (R$ mi) EBITDA margin 12,8% 600 10,4% 3,5 3,5 3,6 9,5% 12,0% 3,4 8,6% 10,0% 500 7,1% 2,8 8,0% 400 362,7 363,7 6,0% 334,5 4,0% 308,6 300 2,0% 238,8 0,0% 200 -2,0% -4,0% 100 -6,0% -8,0% 1Q10 2Q10 3Q10 4Q10 1Q11 0 -10,0% 1Q10 2Q10 3Q10 4Q10 1Q11 EBITDA Margin (%)Source: JBS PAGE 17
  18. 18. JBS USA Beef (including Australia)43% of JBS S.A. Net Revenues.US$ million 1Q11 4Q10 ∆% 1Q10 ∆%Heads slaughtered (thousand) 2,003.1 2,047.3 -2.2% 1,880.0 6.5%Net Revenue 3,793.3 3,588.7 5.7% 2,827.7 34.1%EBITDA 269.7 194.8 38.5% 170.5 58.2%EBITDA margin % 7.1% 5.4% 6.0% Net sales (R$ billion) EBITDA (R$ mi) EBITDA margin 3,8 500 12,0% 3,6 3,3 3,4 7,1% 10,0% 6,0% 8,0% 2,8 400 5,9% 5,4% 3,1% 6,0% 269,7 4,0% 300 2,0% 170,5 194,9 194,8 0,0% 200 -2,0% 103,5 -4,0% 100 -6,0% -8,0% 1Q10 2Q10 3Q10 4Q10 1Q11 0 -10,0% 1Q10 2Q10 3Q10 4Q10 1Q11 EBITDA Margin (%)Source: JBS PAGE 18
  19. 19. JBS USA Pork 10% of JBS S.A. Net Revenues. US$ million 1Q11 4Q10 ∆% 1Q10 ∆% Animals slaughtered (thousand) 3,303.6 3,587.2 -7.9% 3,115.6 6.0% Net Revenue 836.6 799.4 4.7% 645.9 29.5% EBITDA 105.3 102.4 2.8% 34.9 201.7% EBITDA margin % 12.6% 12.8% 5.4% Net sales (R$ billion) EBITDA (R$ mi) EBITDA margin11001000 837 12,8% 12,6% 900 772 799 11,8% 800 739 700 646 6,6% 10,0% 102,4 105,3 600 5,4% 100 90,8 500 5,0% 400 300 200 48,7 0,0% 100 34,9 0 -5,0% 1Q10 2Q10 3Q10 4Q10 1Q11 0 -10,0% 1Q10 2Q10 3Q10 4Q10 1Q11 EBITDA Margin (%) Source: JBS PAGE 19
  20. 20. JBS USA Chicken22% of JBS S.A. Net Revenues.US$ million 1Q11 4Q10 ∆% 1Q10 ∆%Net Revenue 1,892.5 1,811.3 4.5% 1,642.9 15.2%EBITDA (55.2) 124.8 - 59.5 -EBITDA margin % -2.9% 6.9% 3.6% Net sales (R$ billion) EBITDA (R$ mi) EBITDA margin 500 20,0% 18,0% 16,0% 1,9 9,9% 14,0% 1,8 400 7,5% 12,0% 1,6 1,7 1,7 6,9% 10,0% 3,6% 8,0% 6,0% 300 4,0% -2,9% 2,0% 0,0% -2,0% 200 170 -4,0% -6,0% 127,6 124,8 -8,0% -10,0% 100 -12,0% 59,5 -14,0% -16,0% -55,2 -18,0% 1Q10 2Q10 3Q10 4Q10 1Q11 -20,0% 0 -22,0% -24,0% 1Q10 2Q10 3Q10 4Q10 1Q11 -26,0% -28,0% -100 -30,0% EBITDA Margin (%)Source: JBS PAGE 20
  21. 21. Revenue and EBITDA Distribution by Business Unit Revenue 21.9% 25.2% 1Q11 9.7% 43.1% EBITDA -11.6% 36.8% 21.0% 1Q11 53.9%Source: JBS PAGE 21
  22. 22. Organic Growth 2009 / 2010 Each business unit presented double digit organic growth in their local currency, for the period. JBS USA Beef – Net Revenue (US$ million) JBS USA Chicken – Net Revenue (US$ million) 1.900 3.700 1.850 3.500 1.800 3.300 1.750 3.100 2.900 1.700 2.700 1.650 2.500 1.600 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 JBS USA Pork – Net Revenue (US$ million) JBS Mercosul – Net Revenue (R$ million) 850 3.600 800 3.500 750 3.400 700 3.300 3.200 650 3.100 600 3.000 550 2.900 500 2.800 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11Source: USDA PAGE 22
  23. 23. JBS Consolidated Exports Distribution Others 14.0% Africa and Middle East 15.9% 1Q11Philippines 1.3% Mexico 14.4%Taiwan 2.5%China 4.0% US$ 2,450.3 millionCanada 4.4% Japan 13.1%E.U. 5.2%Hong Kong 6.8% Russia 8.4% South Korea 10.1% Others 13.4% Mexico 15,0% 4Q10 Vietnam 1.5% Africa and Middle East 14.9% Taiwan 2.3% US$ 2,087.9 million China 3.5% Canada 4.0% Russia 12.5% South Korea 4.7% Hong Kong 6.8% E.U. 9.2% Japan 12.2% Source: JBS PAGE 23
  24. 24. Debt ProfileThe ratio of net debt to EBITDA was 3.1x in the 1Q11, compared with 3.0x in 4Q10.The slight increase in debt refers to the working capital needs of the Company.It is important to note that the Company’s Cash and Equivalents is equal to 80% of the short term debt, and more than 70% of the debt islong term.Leverage ST / LT Profile 1Q11 30% 70% 1500 3,1 3.1x 1300 3 2,9 3 3 4Q10 33% 67% 1100 900 2 3Q10 33% 67% 700 500 2Q10 36% 64% 300 1 100 1Q10 40% 60% -100 1Q10 2Q10 3Q10 4Q10 1Q11 0 . Leverage EBITDA Short Term Long TermSource: JBS PAGE 24
  25. 25. 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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