JBS S.A. is a leading global protein producer and the third largest food company in the world. In the first quarter of 2011:
- Net revenue increased 20.2% to R$14.7 billion compared to the first quarter of 2010.
- Net income increased 47.9% to R$147 million.
- EBITDA was R$836 million with a margin of 5.7%.
Exports increased over 17% and the company's operations in Brazil, the US, and Australia performed well, with EBITDA margins between 7-13% across key business units. JBS highlighted continued strong global demand and fundamentals for the animal protein industry.
3. JBS S.A. at a glance
Founded in the 1950’s in West Central Brazil
IPO in 2007
Leading protein producer and third largest food company in the World
Revenues of over R$ 54 billion in 2010
EBITDA of R$ 3.76 billion in 2010
Organic growth of 14.2% in local currency in 2010
125,000 employees worldwide
134 production units in 5 continents
Market cap of approximately R$ 15.1 billion(1)
(1) 31/03/2011 PAGE 3
4. JBS Ranking
1 Market Leader
2 Track Record
of successful
acquisitions
3 Geographic and
1
st Largest global beef and
market segment lamb producer
diversification
1
st Largest global leather
processor
4 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. Merger and Acquisition track record
1 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 Jerky
4 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. Presence in more than 100 countries, in 6 continents
1 Market Leader Strategic Geographical Distribution
2 Track Record of
successful
acquisitions
3 Geographic
and market
segment
diversification
4 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. Well-recognized Brands, symbols of quality
1 Market Leader
2 Track Record of
successful
acquisitions
Brazil
3 Geographic and
market segment
diversification Argentina
4 Well-recognized
brands
EUA
Australia
PAGE 7
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$308.3 million and EBITDA margin of
12.6%. 8.6%.
PAGE 15
21. Revenue and EBITDA Distribution by Business Unit
Revenue
21.9% 25.2%
1Q11
9.7%
43.1%
EBITDA
-11.6%
36.8%
21.0% 1Q11
53.9%
Source: JBS PAGE 21
22. Organic Growth 2009 / 2010
Each business unit presented double digit organic growth in their local currency, for the period.
JBS USA Beef – Net Revenue (US$ 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 1Q11
Source: USDA PAGE 22
23. JBS Consolidated Exports Distribution
Others 14.0% Africa and Middle East 15.9%
1Q11
Philippines 1.3%
Mexico 14.4%
Taiwan 2.5%
China 4.0%
US$ 2,450.3 million
Canada 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. Debt Profile
The 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 is
long 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 Term
Source: JBS PAGE 24
25. Mission
“To be best in 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 to all our employees.