The document provides information on the management structure and operations of JBS. It includes:
1) An organizational chart showing the CEO and leadership positions in Brazil, Italy, Argentina, and the US/Australia divisions.
2) Summaries of the educational backgrounds and careers of several members of senior management.
3) Charts showing JBS's consolidated financial results, debt profile, and performance by business units.
4) Information on JBS's acquisition history and global production and distribution platform.
5. MANAGEMENT
CEO
Chairman
Joesley
Batista
Italy Financial Investor
Brazil Argentina Legal
Luigi Director Relations
Humberto Nelson Francisco
Scordamaglia / Sérgio Jerry
Magalhães Dalcanale de Assis e Silva
Paolo Boni Longo O’Callaghan
Mr. Humberto de Mr. Nelson Mr. Scordamaglia, Mr. Sérgio Longo, Mr. Francisco de Assis Mr. Jerry
started his career as e Silva, General O’Callaghan holds a
Campos Dalcanale has been serving
Professor in the Counsel, holds a law degree in
Magalhães holds has been working JBS as a Financial degree and a master
Veterinary University Director since April Engineering from
a degree in biology at JBS since 2001 degree in environmental
of Perugia and as an UCC (University
from Universidade and is currently 2003 and he has law from Pontifícia
advisor in the legal College Cork) in
Federal do Mato CEO of the division and QA departments been a member of Universidade Católica at
Ireland. He
JBS’ board of Paraná State, a master
Grosso. He is in Argentina. of Inalca. appointed degree in corporate law immigrated to Brazil
currently the chief Before joining JBS, CEO of Inalca in 2007 executive officers in 1979. Mr.
and a master’s degree
operating officer of he had 21 years of Mr. Paolo Boni holds since 2005. in public law from O’Callaghan entered
the Brazilian experience in the a degree in Before joining JBS Universidade Mackenzie, the beef sector in
division. Before meat industry accounting. Before he had over 25 and an MBE in labor 1983 and joined JBS
joining JBS he had economics from in 1996 to develop
joining JBS in years of experience
over 25 years of Universidade de São International Trade
1999, he had over working in financial
experience in the beef Paulo. He has been a for the group. He is
8 years of institutions. member of JBS’ board of currently our
industry sector. He
experience executive officers since Investor Relations’
has been a Board
working in the Member of Inalca January 2, 2007 . Officer.
meat industry since 1996. He has been working for
JBS Group since
December 2001.
6. MANAGEMENT
CEO
USA/AUS
Wesley
Batista
Five
Pork Trading CFO Smithfield Beef USA
Australia Rivers
Martin Brent André Beef David Colwell/
Iain Mars Mike
Dooley Eastwood Nogueira Richard Vesta Tim Klein
Thoren
Mr. André * * *
Mr. Iain Mars Mr. Martin Mr. Brent Mr. Richard Vesta Mr. David Colwell Mr. Thoren has
Nogueira holds a
was born in Dooley Eastwood had joined Smithfield holds a degree from served as CEO of
degree in Economics
England. Iain has worked for Swift & Foods following the University of South Five Rivers since the
Holds a degree of from Universidade
acquisition of Florida. David has Company’s
been involved in Science in Company for over Federal Fluminense,
Packerland in 2001 been the President of inception.
the beef industry Biology/Medical 18 years. a master degree in
and now serves as JBS Beef since 2007,
Capital Markets from Mike received his
for all his life. Mr Technology – He moved to the president and chief but will be replaced
FGV – Fundacão Master of Science
Mars was Eastern Illinois USA in 2007 to be operating officer of by Tim Klein, once/if degree in
Getúlio Vargas, a
appointed University - 1982 head of JBS Smithfield Beef the acquisition of Agricultural
master degree in in
President of JBS Marty has worked Trading USA, the Group. Smithfield Beef is Economics and his
Economics from
Australia in 2007, Swift Distribution Mr. Vesta will approved by U.S. degree in
at Swift & Universidade de
antitrust authorities.
after the Company all his Centers USA and Brasilia in 2003. maintain its position Agribusiness from
acquisition of the Global Trading running the David Colwell will still Washington State
life, having started He worked for more
Swift & Company. Smithfield Beef have a role as University. Mr.
as a management Business (JBS). than 20 years in
He joined JBS in Group/JBS executive in JBS Thoren will lead the
trainee in 1983. Banco do Brasil and
Packerland once/if USA, but his new cattle feeding
2005. joined JBS in 2007,
He was appointed the acquisition of position has yet to be businesses once/if
following the bought
in 2007 to be the Smithfield Beef is defined. the acquisition of
Swift & Co
President of JBS approved by U.S. Smithfield Beef is
acquisition.
antitrust authorities. approved by U.S.
Pork division.
antitrust authorities.
* The closing of these transactions are subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law
7. OUR STRATEGY
* The closing of these transactions are subject to certain closing
conditions, including expiration or termination of applicable
waiting periods under U.S. antitrust law
Mitigate Potential Risks
as Sanitary Barriers &
Seasonality
8. JBS’ HISTORY HAS BEEN BUILT THROUGH MORE THAN 30
ACQUISITIONS IN 15 YEARS
Inalca National Beef
Swift Foods Co.
Net Sales (in US$ billion) Smithfield Beef
Maringá (Amambay)
Five Rivers
Companies and assets acquired Berazategui
(Rio Platense) (1)
Colonia Caroya
Tasman
SB Holdings
JV Beef Jerky
Goiânia Barretos (Anglo) Rio Branco Venado
(Anglo) Pres. Epitácio (Bordon) Cacoal 1 Tuerto
25.0
Campo Grande (Bordon) Cacoal 2 Pontevedra
Porto Velho (CEPA)
Vilhena (Frigovira)
Barra do Pedra Preta
Cáceres
Garças (Frigo Marca)
(Frigosol)
(Sadia) Rosário
Iturama
(Swift ARG)
(Frigosol) San Jose
Araputanga
Anápolis Andradina
(Swift ARG) 12.7
(Sadia) (Frigoara)
(Bordon)
1.5 1.9
0.7 1.2
0.3 0.4 0.4 0.5 0.5 0.4
1993 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008**
R$/US$ end of the year cotation R$/US$: 1.59
Source: JBS
* Pro forma JBS S.A. LTM Dec07 (includes JBS USA)
** Pro Forma JBS S.A. LTM Jun08 (includes JBS USA, Tasman and 50% of Inalca); National LTM May08; Smithfield Beef LTM Oct07;
(1) The closing of these transactions are subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law
12. JBS: GLOBAL PRODUCTION & DISTRIBUTION PLATFORM
The geographic diversification of its operations allows it to source meat efficiently, serve its
customers cost-effectively, capitalize on increasing international trade opportunities and helps
to mitigate the potential impacts of sanitary barriers
Exchange rates:
US$12,214 R$ / US$ = 1.59 – 06/30/2008
US$ / €$ = 1,57 – 06/30/2008
US$866
5% US$46
74%
Revenue Ebitda
US$159
Revenue Ebitda
US$3,348
21% US$353
Revenue Ebitda
JBS Mercosul JBS USA / Australia Inalca JBS
Source: JBS
* JBS S.A. LTM Jun08, Pro forma JBS USA LTM Jun08 (includes Tasman) and Pro forma 50% of Inalca LTM Jun08
13. JBS DEBT PROFILE
Leverage (US$ mm) Cash and Debt Amortization (US$ mm)
Net debt Net debt/EBITDA
4.3 1551
3.8 3.7 1,459
2.9 2.8
592 637
192
52
1,381
1,337
2010
2011
After 2011
Jul-Dec 2009
investments
Less than 1
1,191
Cash &
year
1,138
Source: JBS
Debt per Currency (June 2008)
566
Foreign
currency
60%
Real (R$)
40%
2005 2006 2007 1Q08 2Q08
Source: JBS
Source: JBS
Exchange rates:
R$ / US$ = 1.59 – 06/30/2008
14. PERFORMANCE BY BUSINESS UNITS
JBS USA (Beef)
Including Australia JBS USA (Pork) INALCA JBS MERCOSUL
Net Sales
(US$ million) (US$ ) (€ ) (R$ )
7,324 7,375
4,892
3,968
2,630 2,175 522 521
2,070
1,976 1,425
1,271
620 155
536 132
FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08
(1) (2) (1) (2)
EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (€ mi) EBITDA (R$ mi)
margin EBITDA margin EBITDA margin EBITDA margin EBITDA
Margem (%) Margem (%) Margem (%) Margem (%)
5.1% 3.5% 3.2% 2.9% 3.2% 4.8% 5.6% 4.8% 15.3%
4.9% 11.4% 10.4% 4.1%
0.3%
-0.5%
692.0
-0.9% 132.9
565.0
73.3 70.3
25.8
25.0 26.0
-6.0 19.9 132.7
15.7 7.4 7.5
58.2
-67.6
FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08
FY06 FY07 1Q08 2Q08
(1) (2) (1) (2)
Source: JBS
FY of Swift used to be from June to May and INALCA period is from January to December.
(1) 13 weeks ended 03/30/2008. (2) 13 weeks ended 06/30/2008.
15. HOW JBS IMPROVED SWIFT’S MARGINS
EBITDA (US$ mi) EBITDA Margin Turnaround Financial Impacts (US$ mm)
Margin (%) Preliminary Amount
4.8% Estimates Realized
12/7/2007 29/06/2008
0.1% 1.0% 0.1% 0.6% Potencial Increase in Revenue
-1.4% (second shift and optimization 1,100 800
of installed capacity)
152.8
95.9
Cost Reduction 169.5 135.1
SG&A (Consulting, Reduction of
5.7 3.8 14.7 Organizational Structure, Insurance) 28.8 20.7
Variable Costs
(Packing, Suplies, Eletricity, Gas) 45.0 60.0
-41.1 Improvement in Carcass Yield
FY06 FY07 3Q07 4Q07 1Q08 2Q08 (Rear De-boning, Ribs De-Boning, Pork
Intestines) 95.7 54.4
Net Sales (US$ million) (USGAAP) Fixed Cost* per Head Beef USA (US$)
Cost reduction of
9,350 9,505
US$48.1 per head
212,3
164,2
2,588 2,871 3,157
2,462
FY06 FY07 3Q07 4Q07 1Q08 2Q08 2Q07 2Q08
Source: JBS USA
* Cost per head includes packing costs, plant costs, SG&A, depreciation e interest.
18. JBS CONSOLIDATED – SALES DISTRIBUTION
Be e f Argentina
Be e f Italy 2%
5%
Be e f Australia E xports
14% 37%
Be e f USA
43%
P ork USA
16% Dome stic Market
63%
Be e f Brazil
20%
19. JBS CONSOLIDATED – EXPORTS DISTRIBUTION
T aiwan Hong Kong
US A
Canada 4% 3%
5%
6%
China Othe rs
6% 16%
S outh K orea
6%
Japan
Me xico 18%
10%
Russia
10% E .U.
16%
20. BRAZIL PRESUMING MARGINS PER HEAD IN DOLLAR
120.0 3.5
3.0
100.0
2.5
80.0
USD per Head
2.0
USD per Kg
60.0
1.5
40.0
1.0
20.0
0.5
0.0 -
2005 2006 2007 1S08
EBITDA per Head (US$) Cattle Price (US$/Kg)
21. GLOBAL CATTLE PRICES US$/Kg
4.25
3.75
3.25
2.75
2.25
1.75
1.25
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08
BRA AUS ARG USA URU