background image
Result
JBS S.A. (Bovespa: JBSS3)*
JBS reported
Net revenue
1Q12
HIGHLIGHTS
JBS posted consolidated net revenue of R$16.0
Consolidated EBITDA was R$696.5
JBS Mercosul was the
million, an increase of 6.2% over 1Q11.
was R$508.6 million, EBITDA margin was 13.3%.
JBS USA Pork net revenue totaled US$855.4
US$55.8 million.
JBS USA Chicken (PPC) posted
million in the period, reversing the n
Adjusted net Income in the period
liabilities generated by goodwill (this only generates
company sells the investment that generated goodwill).
was R$116.1 million.
The Company ended the
corresponding to 100% of short
2012 Events
JBS initiated operations in the
with capacity to process 1.1 million birds/day.
JBS adds 12 beef slaughter
head/day.
This expansion in Brazil, in
revenue of R$4.5 billion.
The approval of the Voluntary Public Offering to Exchange JBS shares for shares issued by
Vigor.
*JBS S.A. ("JBS") (Bovespa: JBSS3), the global leading producer of animal protein announces today its results for the f
of 2012 (1Q12). For the purpose of analysis, this report considers the results for the quarter ended
and March 31, 2011 (1Q11).
The consolidated results of JBS are presented in Brazilian Real (R$) and when separately analyzed, each business uni
results in the currency of the country in which it operates. The operations of JBS Australia are an integral part of the sub
JBS USA and both results refer to the period of 13 weeks ended
and heads slaughtered, are not audited.
Results for 1Q12
São Paulo,
reported adjusted net income of R$240 m
et revenue increased 9.1% compared with
ted net revenue of R$16.0 billion, 9.1% higher than 1Q11
EBITDA was R$696.5 million. EBITDA margin was 4.4%.
the highlight during the quarter reporting net revenue of R$3,827
increase of 6.2% over 1Q11. EBITDA increased 64.9% over the same period and
was R$508.6 million, EBITDA margin was 13.3%.
net revenue totaled US$855.4 million, 2.2% higher than
JBS USA Chicken (PPC) posted net revenue of US$1.9 billion and EBITDA of
million in the period, reversing the negative result presented in 1Q11
in the period was R$240.3 million excluding
liabilities generated by goodwill (this only generates effective income tax
the investment that generated goodwill). Without this adjustment
The Company ended the quarter with R$5.15 billion in cash or cash equivalent,
% of short-term debt.
initiated operations in the poultry industry in Brazil through the lease of
1.1 million birds/day.
slaughter units in Brazil with a combined capacity to process around 8
xpansion in Brazil, in poultry and beef, will add an estimated
The approval of the Voluntary Public Offering to Exchange JBS shares for shares issued by
*JBS S.A. ("JBS") (Bovespa: JBSS3), the global leading producer of animal protein announces today its results for the f
. For the purpose of analysis, this report considers the results for the quarter ended
The consolidated results of JBS are presented in Brazilian Real (R$) and when separately analyzed, each business uni
results in the currency of the country in which it operates. The operations of JBS Australia are an integral part of the sub
JBS USA and both results refer to the period of 13 weeks ended May 25, 2012 (1Q12). The quantitative data, su
and heads slaughtered, are not audited.
1
São Paulo, May 15th, 2012
million
1Q11
illion, 9.1% higher than 1Q11.
net revenue of R$3,827.4
EBITDA increased 64.9% over the same period and
% higher than 1Q11. EBITDA was
of US$1.9 billion and EBITDA of US$104.0
egative result presented in 1Q11.
excluding deferred income tax
income tax payment if the
Without this adjustment net income
billion in cash or cash equivalent,
in Brazil through the lease of Frangosul assets,
capacity to process around 8,000
estimated additional annualized
The approval of the Voluntary Public Offering to Exchange JBS shares for shares issued by
*JBS S.A. ("JBS") (Bovespa: JBSS3), the global leading producer of animal protein announces today its results for the first quarter
. For the purpose of analysis, this report considers the results for the quarter ended December 31, 2011 (4Q11)
The consolidated results of JBS are presented in Brazilian Real (R$) and when separately analyzed, each business unit reports its
results in the currency of the country in which it operates. The operations of JBS Australia are an integral part of the subsidiary
). The quantitative data, such as volumes
background image
Result


ANALYSIS OF RESULTS BY BUSINESS UNIT
Analysis of the principal financial indicators of JBS by Business Unit (in local currency)
Net Revenue
JBS USA Beef
US$
JBS USA Pork
US$
JBS USA Chicken
US$
JBS Mercosul
R$
EBITDA
JBS USA Beef
US$
JBS USA Pork
US$
JBS USA Chicken
US$
JBS Mercosul
R$
EBITDA Margin
JBS USA Beef
%
JBS USA Pork
%
JBS USA Chicken
%
JBS Mercosul
%
Net sales (R$ billion)
Net sales (US$ billion)
EBITDA (R$ million)
EBITDA (US$ million)
EBITDA Margin (%)
JBS Mercosul
JBS USA
(Including Australia)
3.8
4.0
1Q11
2Q11
3.6
3.6
3.9
3.8
3.8
1Q11
2Q11
3Q11
4Q11
1Q12
308,3
427.9 453.8 407.7
508.6
8.6%
11.8%
11.6% 10.7%
13.3%
- 1 0 .0 %
- 8 .0 %
- 6 .0 %
- 4 .0 %
- 2 .0 %
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
1 0 .0 %
1 2 .0 %
1 4 .0 %
1 6 .0 %
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
1Q11
2Q11
3Q11
4Q11
1Q12
269.7
44.7
7.1%
1.1%
- 1 0 0
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
1Q11
2Q11
Performance by
Business Unit
Results for 1Q12
BY BUSINESS UNIT
Analysis of the principal financial indicators of JBS by Business Unit (in local currency)
1Q12
4Q11
%
4,078.8
4,491.6
-9.2%
3,793.3
855.4
923.1
-7.3%
1,888.8
1,829.3
3.3%
1,892.5
3,827.4
3,800.5
0.7%
3,604.2
-45.4
223.6
-
55.8
77.0
-27.5%
104.0
22.6
360.1%
508.6
407.7
24.7%
-1.1%
5.0%
-
6.5%
8.3%
-
5.5%
1.2%
-
13.3%
10.7%
-
Net sales (US$ billion)
Net sales (US$ million)
EBITDA (US$ million)
EBITDA (US$ million)
JBS USA
(Including Australia)
JBS USA
4.0
4.2
4.5
4.1
2Q11
3Q11
4Q11
1Q12
836,6 846.0 867.1
923.1 855.4
1 0 0 .0
1 8 0 .0
2 6 0 .0
3 4 0 .0
4 2 0 .0
5 0 0 .0
5 8 0 .0
6 6 0 .0
7 4 0 .0
8 2 0 .0
9 0 0 .0
9 8 0 .0
1 0 6 0 .0
1 1 4 0 .0
1 2 2 0 .0
1 3 0 0 .0
1Q11
2Q11
3Q11
4Q11
1Q12
44.7
184.1
223.6
-45,4
1.1%
4.4% 5.0%
-1.1%
- 3 0 .0 %
- 2 8 .0 %
- 2 6 .0 %
- 2 4 .0 %
- 2 2 .0 %
- 2 0 .0 %
- 1 8 .0 %
- 1 6 .0 %
- 1 4 .0 %
- 1 2 .0 %
- 1 0 .0 %
- 8 .0 %
- 6 .0 %
- 4 .0 %
- 2 .0 %
0 .0 %
2 .0 %
4 .0 %
6 .0 %
8 .0 %
1 0 .0 %
1 2 .0 %
1 4 .0 %
1 6 .0 %
2Q11
3Q11
4Q11
1Q12
101.7
83.6
75.9
77.0
55.8
12.2%
9.9%
8.8% 8.3% 6.5%
- 2 3 .0 %
- 1 9 .0 %
- 1 5 .0 %
- 1 1 .0 %
- 7 .0 %
- 3 .0 %
1 .0 %
5 .0 %
9 .0 %
1 3 .0 %
- 0 .0 2 3
9 9 .9 7 7
1 9 9 .9 7 7
1Q11
2Q11
3Q11
4Q11
1Q12
2
Analysis of the principal financial indicators of JBS by Business Unit (in local currency)
1Q11
%
3,793.3
7.5%
836.6
2.2%
1,892.5
-0.2%
3,604.2
6.2%
269.7
-
101.7
-45.1%
-53.5
-
308.3
64.9%
7.1%
-
12.2%
-
-2.8%
-
8.6%
-
Net sales (US$ billion)
EBITDA (US$ million)
JBS USA (PPC)
1.9
2.0
1.9
1.8
1.9
1Q11
2Q11
3Q11
4Q11
1Q12
-53,5 -47,6 -31,4
22,6
104,0
-2.8%
-2.4% -1.7%
1.2%
5.5%
- 2 5 .0 %
- 2 3 .0 %
- 2 1 .0 %
- 1 9 .0 %
- 1 7 .0 %
- 1 5 .0 %
- 1 3 .0 %
- 1 1 .0 %
- 9 .0 %
- 7 .0 %
- 5 .0 %
- 3 .0 %
- 1 .0 %
1 .0 %
3 .0 %
5 .0 %
7 .0 %
9 .0 %
- 2 0 0
- 1 0 0
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
1Q11
2Q11
3Q11
4Q11
1Q12
background image
Result
Consolidated analysis of the principal operational indicators of JBS
(1) Participation of Controlling Shareholders.

Number of Heads Processed and Sales Volume*
*
Not including chicken


R$ million
Net Revenue
Cost of Goods Sold
Gross Income
Gross Margin
Selling Expenses
General and Adm. Expenses
Net Financial Income (expense)
Other Income (expense)
Operating Income
Income and social contribution taxes
Participation of non-controlling shareholders
Net Income (Loss)
(1)
EBITDA
EBITDA Margin
Net Income (Loss) per share
Heads Processed (thousand)
Cattle
Hogs
Smalls
Volume Sold (thousand tons)*
Domestic Market*
Fresh and Chilled Beef
Processed Beef
Others
Exports
Fresh and Chilled Beef
Processed Beef
Others
TOTAL
Results for 1Q12
Consolidated analysis of the principal operational indicators of JBS
(1) Participation of Controlling Shareholders.
and Sales Volume*

1Q12
4Q11
%
16,011.1
16,934.5
-5.5%
(14,357.2)
(15,040.0)
-4.5%
1,653.9
1,894.5
-12.7%
10.3%
11.2%
-
(816.4)
(839.3)
-2.7%
(427.9)
(491.4)
-12.9%
(155.8)
(549.2)
-71.6%
(12.2)
(22.4)
-45.6%
241.6
(7.9)
-
(112.1)
(15.3)
632.6%
Participation of non-controlling shareholders
(13.4)
48.7
-
116.1
25.6
354.0%
696.5
940.6
-26.0%
4.4%
5.6%
-
0.04
0.01
-
1Q12
4Q11
%
3,717.9
3,625.7
2.5%
3,307.0
3,651.9
-9.4%
934.8
894.7
4.5%
1,706.1
1,667.9
2.3%
1,449.3
1,423.2
1.8%
34.8
35.9
-3.1%
222.0
208.9
6.3%
448.9
502.9
-10.7%
418.2
472.4
-11.5%
14.7
14.4
1.8%
16.1
16.1
-0.3%
2,155.0
2,170.9
-0.7%
3
%
1Q11
%
-5.5%
14,672.7
9.1%
-4.5%
(12,984.3)
10.6%
-12.7%
1,688.4
-2.0%
-
11.5%
-
-2.7%
(737.5)
10.7%
-12.9%
(418.9)
2.1%
-71.6%
(351.1)
-55.6%
-45.6%
(8.8)
39.0%
-
172.2
40.3%
632.6%
(82.2)
36.3%
-
57.0
-
354.0%
147.0
-21.0%
-26.0%
835.9
-16.7%
-
5.7%
-
-
0.06
-
1Q11
%
3,750.2
-0.9%
3,303.6
0.1%
574.0
62.9%
1,738.4
-1.9%
1,467.4
-1.2%
32.9
5.6%
238.0
-6.8%
499.0
-10.0%
466.7
-10.4%
17.8
-17.5%
14.5
10.9%
2,237.4
-3.7%
background image
Result
CONSOLIDATED RESULTS
Net Revenue

JBS consolidated net revenue in 1Q12 was R$16,011.1
1Q11 when the Company posted R$14,672.7 million
performance in the USA Beef, due to higher
Unit, which presented an increase of 16.0%
combined with export price increase

In 1Q12, approximately 78% of global sales
the Company is present and 22% came from exports.

EBITDA

1Q12 EBITDA was R$696.5 million, a decline of 16.7% compared to 1Q11
negative result coming from JBS USA Beef
US$45.4 million, compared to positive EBITDA of US$ 269.7 million in 1Q11. This result was
offset by the reversal of PPC negative EBITDA of US$53.5 million in 1Q11, to US$ 104.0 million
positive in 1Q12. JBS Mercosul expanded its
period, which more than offset the lower
EBITDA margin was 4.4%

This result reinforces the importance of
diversification, as can be seen on the
performance of some business units at times when other business units

Financial Result

1Q12 financial result was R$155.8 million,
exchange rate variation in the period of
exchange rate of U.S. Dollar against the
result was negative R$109.9 million, due to long position
maintained since the previous period and increased during 1Q12 at favorable rates.


Net Income

Adjusted net Income in the period was R$240.3 million excluding deferred income tax liabiliti
generated by goodwill (this only generates effective income tax payment if the company sells
the investment that generated goodwill). Without this adjustment net income was R$116.1
million.

Capital Expenditure

In 1Q12, total capital expenditure
million, 7.4% lower than 1Q11 and in line with deprecia
million. The main focus of investments were for
increase in storage capacity and distribution

Results for 1Q12
consolidated net revenue in 1Q12 was R$16,011.1 million, an increase of
1Q11 when the Company posted R$14,672.7 million. This expansion was caused
, due to higher prices during the quarter,
Unit, which presented an increase of 16.0% in volume sold of fresh beef in the domestic market
combined with export price increase.
of global sales were generated domestically
% came from exports.
696.5 million, a decline of 16.7% compared to 1Q11. This result was due to
negative result coming from JBS USA Beef business unit, which posted negative EBITDA of
US$45.4 million, compared to positive EBITDA of US$ 269.7 million in 1Q11. This result was
offset by the reversal of PPC negative EBITDA of US$53.5 million in 1Q11, to US$ 104.0 million
osul expanded its EBITDA by approximately R
period, which more than offset the lower results in the JBS USA Pork business. The consolidated
the importance of the Company's protein
can be seen on the consolidated results, made possible by the good
performance of some business units at times when other business units face difficulties
$155.8 million, an improvement of 55.6% over
period of R$230.0 million, driven mainly by 2.9%
against the Real in the period. On the other hand, derivatives
$109.9 million, due to long positions in U.S. currency
period and increased during 1Q12 at favorable rates.
Adjusted net Income in the period was R$240.3 million excluding deferred income tax liabiliti
generated by goodwill (this only generates effective income tax payment if the company sells
the investment that generated goodwill). Without this adjustment net income was R$116.1
, total capital expenditure (CAPEX) of JBS in property, plant, and equipment was R$292
1Q11 and in line with depreciation and amortization which was
focus of investments were for the improvement of productivity and
age capacity and distribution globally.
4
increase of 9.1% compared to
This expansion was caused primarily by the
prices during the quarter, and by the Mercosul
in volume sold of fresh beef in the domestic market
domestically in the markets that
. This result was due to a
, which posted negative EBITDA of
US$45.4 million, compared to positive EBITDA of US$ 269.7 million in 1Q11. This result was partially
offset by the reversal of PPC negative EBITDA of US$53.5 million in 1Q11, to US$ 104.0 million
EBITDA by approximately R$200 million in the
in the JBS USA Pork business. The consolidated
the Company's protein and geographical
possible by the good
face difficulties.
over 1Q11, reflecting the
$230.0 million, driven mainly by 2.9% decrease in the
On the other hand, derivatives
in U.S. currency which were
period and increased during 1Q12 at favorable rates.
Adjusted net Income in the period was R$240.3 million excluding deferred income tax liabilities
generated by goodwill (this only generates effective income tax payment if the company sells
the investment that generated goodwill). Without this adjustment net income was R$116.1
ant, and equipment was R$292
tion and amortization which was R$285
rovement of productivity and the
*
background image
Result
Indebtedness

JBS' net debt to EBITDA, excluding Pilgrim's Pride (PPC), a US Listed Company controlled by JBS,
was 3.6x at the end of 1Q12. The leverage indicator increased due to JBS USA Beef negative
margin during the 1Q12, which negatively impacted EBITDA LTM in US$332.1 million.



JBS (excluding PPC)
(1) EBITDA LTM. U.S. dollar exchange rate of the last day of the
due to the fact that PPC is a non-recourse subsidiary controlled by JBS.
Including Pilgrim's Pride, leverage
beef weak performance, as mentioned
which added US$157,5 million to LTM EBITDA.



JBS including Pilgrim's Pride
(1) EBITDA LTM. U.S. dollar exchange rate of the last day of the
R$ million
Gross debt
(+) Short Term Debt
(+) Long Term Debt
(-) Cash and Equivalents
Net debt
Net debt/EBITDA ¹
R$ million
Gross debt
(+) Short Term Debt
(+) Long Term Debt
(-) Cash and Equivalents
Net debt
Net debt/EBITDA
¹
Results for 1Q12
, excluding Pilgrim's Pride (PPC), a US Listed Company controlled by JBS,
The leverage indicator increased due to JBS USA Beef negative
margin during the 1Q12, which negatively impacted EBITDA LTM in US$332.1 million.
(1) EBITDA LTM. U.S. dollar exchange rate of the last day of the period. Pilgrim's Pride was excluded from the debt calculation of JBS
recourse subsidiary controlled by JBS.
leverage increased from 4.0x in 4Q11 to 4.3x in 1Q12, due to JBS USA
beef weak performance, as mentioned previously, despite PPC good result, as expected,
which added US$157,5 million to LTM EBITDA.
U.S. dollar exchange rate of the last day of the period.
3/31/12
12/31/11
16,380.9
16,201.8
4,990.3
5,310.1
11,390.6
10,891.7
5,055.6
5,195.7
11,325.3
11,006.1
3.6x
3/31/12
12/31/11
18,686.1
18,872.2
5,018.7
5,339.4
13,667.3
13,532.8
5,150.8
5,288.2
13,535.3
13,584.0
4.3x
5
, excluding Pilgrim's Pride (PPC), a US Listed Company controlled by JBS,
The leverage indicator increased due to JBS USA Beef negative
margin during the 1Q12, which negatively impacted EBITDA LTM in US$332.1 million.
Pilgrim's Pride was excluded from the debt calculation of JBS
increased from 4.0x in 4Q11 to 4.3x in 1Q12, due to JBS USA
good result, as expected,
12/31/11
Var.%
16,201.8
1.1%
5,310.1
-6.0%
10,891.7
4.6%
5,195.7
-2.7%
11,006.1
2.9%
3.0x
12/31/11
Var.%
18,872.2
-1.0%
5,339.4
-6.0%
13,532.8
1.0%
5,288.2
-2.6%
13,584.0
-0.4%
4.0x
background image
Result
Cash Position
The Company ended the quarter with R$5.
to 100% of short-term debt.
Source: JBS




3.1
-100
100
300
500
700
900
1100
1300
1500
1Q11
.
Leverage
Leverage
.
LeverageEx
3.1
27%
28%
28%
27%
30%
1Q12
4Q11
3Q11
2Q11
1Q11
Short Term
ST / LT Debt Profile
Results for 1Q12
The Company ended the quarter with R$5.15 billion in cash or cash equivalent,
3.6
4.0
4.0
4.3x
1Q11
2Q11
3Q11
4Q11
1Q12
Leverage
EBITDA
LeverageEx-PPC
EBITDA Ex-PPC
3.1
3.2
3.0
3.0
3.6x
28%
28%
30%
73%
72%
72%
73%
70%
Long Term
ST / LT Debt Profile
6
billion in cash or cash equivalent, corresponding
0
1
2
3
4
0
1
2
3
4
background image
Result
ANALYSIS OF RESULTS BY BUSINESS UNIT
JBS USA Beef (including Australia),


1Q12 net revenue for this business unit
result reflects an increase in average sales prices in the domestic and export markets
2011. Compared to 4Q11, revenue
volumes and reduced prices in the domestic market.

EBITDA was negative US$45.4 million,
increased 17.6% in the period, and by a 4.8% appreciation of Australian Dollar against U.S.
Dollar in the quarter which impacted cost of goods sold in that country. This increase in price of
cattle in the U.S. was combined with low sales prices both domestically and in exports.

The Company believes in the recovery of margins in this sector through better sales prices and
a balance between supply and demand during 2012, besides the increase in demand and
higher cattle availability seasonally. The management remains committed to operate with low
cost, focused on increased profitability per animal processed and an improved sales mix.


Highlights (US GAAP)


Breakdown of Net Revenues

US$ million
Heads slaughtered (thousand)
Net Revenue
EBITDA
EBITDA margin %
Domestic Market
Net Revenue (US$ million)
Volume (tons)
Average Price (US$/Kg)
Exports
Net Revenue (US$ million)
Volume (tons)
Average Price (US$/Kg)
Results for 1Q12
ANALYSIS OF RESULTS BY BUSINESS UNIT
JBS USA Beef (including Australia),
45% of JBS S.A. Net Revenue
for this business unit was US$4,078.8 million, outperforming 4
average sales prices in the domestic and export markets
Q11, revenue decreased 9.2%, as a consequence of lower export
prices in the domestic market.
million, impacted by an historical high price of livestock, which
increased 17.6% in the period, and by a 4.8% appreciation of Australian Dollar against U.S.
Dollar in the quarter which impacted cost of goods sold in that country. This increase in price of
combined with low sales prices both domestically and in exports.
The Company believes in the recovery of margins in this sector through better sales prices and
a balance between supply and demand during 2012, besides the increase in demand and
le availability seasonally. The management remains committed to operate with low
cost, focused on increased profitability per animal processed and an improved sales mix.
1Q12
4Q11
%
1,960.3
2,108.7
-7.0%
4,078.8
4,491.6
-9.2%
(45.4)
223.6
-
-1.1%
5.0%
1Q12
4Q11
%
3,105.4
3,261.8
-4.8%
881.3
872.9
1.0%
3.52
3.74
-5.7%
1Q12
4Q11
%
973.3
1,229.9
-20.9%
249.4
304.7
-18.1%
3.90
4.04
-3.3%
7
million, outperforming 4Q11 by 7.5%. This
average sales prices in the domestic and export markets since
, as a consequence of lower export
historical high price of livestock, which
increased 17.6% in the period, and by a 4.8% appreciation of Australian Dollar against U.S.
Dollar in the quarter which impacted cost of goods sold in that country. This increase in price of
combined with low sales prices both domestically and in exports.
The Company believes in the recovery of margins in this sector through better sales prices and
a balance between supply and demand during 2012, besides the increase in demand and
le availability seasonally. The management remains committed to operate with low
cost, focused on increased profitability per animal processed and an improved sales mix.
1Q11
%
2,003.1
-2.1%
3,793.3
7.5%
269.7
-
7.1%
1Q11
%
2,774.1
11.9%
908.7
-3.0%
3.05
15.4%
1Q11
%
1,019.2
-4.5%
280.8
-11.2%
3.63
7.5%
background image
Result
JBS USA Pork, 10% of JBS S.A. Net Revenue

Net revenue for the quarter was US$
increase in domestic average sales prices. Compared to 4
as a result of seasonally lower number of

EBITDA was US$55.8 million during 1Q12 and
3.5% increase in raw material combined with a reduction in export volume, due to some
weaker markets.
Highlights (US GAAP)

Breakdown of Net Revenues


US$ million
Animals slaughtered (thousand)
Net Revenue
EBITDA
EBITDA margin %
Domestic Market
Net Revenue (US$ million)
Volume (thousand tons)
Average Price (US$/Kg)
Exports
Net Revenue (US$ million)
Volume (thousand tons)
Average Price (US$/Kg)
Results for 1Q12
% of JBS S.A. Net Revenue
quarter was US$855.4
million, 2.2% above 1Q11, reflecting
age sales prices. Compared to 4Q11, there was a
number of heads processed and sales volume.
was US$55.8 million during 1Q12 and margin was 6.5%. 1Q12 results were
3.5% increase in raw material combined with a reduction in export volume, due to some
1Q12
4Q11
%
3,307.0
3,651.9
-9.4%
855.4
923.1
-7.3%
55.8
77.0
-27.5%
6.5%
8.3%
1Q12
4Q11
%
697.5
763.9
-8.7%
292.3
310.5
-5.9%
2.39
2.46
-3.0%
1Q12
4Q11
%
157.9
159.2
-0.8%
68.5
65.8
4.1%
2.30
2.42
-4.7%
8
, reflecting primarily an
re was a decrease of 7.3%
and sales volume.
1Q12 results were impacted by
3.5% increase in raw material combined with a reduction in export volume, due to some
1Q11
%
3,303.6
0.1%
836.6
2.2%
101.7
-45.1%
12.2%
1Q11
%
683.2
2.1%
321.0
-8.9%
2.13
12.1%
1Q11
%
153.4
2.9%
71.5
-4.2%
2.15
7.4%
background image
Result
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA),
of JBS S.A. Net Revenue

1Q12 net revenue was US$1,888.8
US$104.0 million, reversing the negative

The resumption of margins in the chicken industry can be proven by first quarter results. PPC
obtained positive operating cash flow of
the period. There was also a reduction of
the offering made in 1Q12 and cash generation in the period.

These results reinforce the Company's strate
and "spirit of ownership" at all levels of the organization. The focus of the administration
value all cuts of the bird and not
margins and maintain profitability in the long run.

In addition, the Company believes that the industry can be profitable even with volatility in
grain prices, by focusing on reducing costs and


Highlights (US GAAP)
US$ million
Net Revenue
EBITDA
EBITDA margin %
Results for 1Q12
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA),
1Q12 net revenue was US$1,888.8 million, stable compared to 1Q11.
negative result of US$53.5 million in 1Q11.
The resumption of margins in the chicken industry can be proven by first quarter results. PPC
obtained positive operating cash flow of US$29.4 million and net income of
the period. There was also a reduction of US$221.5 million in net debt through
in 1Q12 and cash generation in the period.
These results reinforce the Company's strategy to operate with low cost, operational efficiency
and "spirit of ownership" at all levels of the organization. The focus of the administration
value all cuts of the bird and not be dependent only on the high price of white meat to raise
margins and maintain profitability in the long run.
In addition, the Company believes that the industry can be profitable even with volatility in
grain prices, by focusing on reducing costs and balancing supply and demand.

1Q12
4Q11
%
1,888.8
1,829.3
3.3%
104.0
22.6
360.1%
5.5%
1.2%
9
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA), 21%
stable compared to 1Q11. Adjusted EBITDA was
The resumption of margins in the chicken industry can be proven by first quarter results. PPC
$29.4 million and net income of US$39.6 million in
21.5 million in net debt through the conclusion of
gy to operate with low cost, operational efficiency
and "spirit of ownership" at all levels of the organization. The focus of the administration is to
only on the high price of white meat to raise
In addition, the Company believes that the industry can be profitable even with volatility in
ly and demand.
1Q11
%
1,892.5
-0.2%
(53.5)
-
-2.8%
background image
Result
JBS Mercosul, 24% of JBS S.A. Net Revenue

Net revenue of JBS Mercosul came in at
comparison with 1Q11, as a result of an increase in domestic sales
Compared to 4Q11, revenue was flat
64.9% in comparison with 1Q11. EBITDA margin was

JBS Mercosul exceptional result was driven by
numbers of JBS Controller (Company)
margin increased from 21.4% in 1Q11 to 26.8% in 1Q12, reflecting the increased availability of
livestock for slaughter and improved
R$514.4 million with EBITDA margin of 15.4%
and reduction in operating costs.

Highlights


Breakdown of Net Revenues
R$ million
Heads slaughtered (thousand)
Net Revenue
EBITDA
EBITDA margin %
Domestic Market
Net Revenue (million R$)
Fresh and Chilled Product
Processed Items
Others
TOTAL
Volume (thousand tons)
Fresh and Chilled Product
Processed Items
Others
TOTAL
Average Price (R$/Kg)
Fresh and Chilled Product
Processed Items
Others
Results for 1Q12
% of JBS S.A. Net Revenue
came in at R$3,827.4 million in 1Q12, an increase of 6.2
, as a result of an increase in domestic sales
was flat. EBITDA for the quarter was R$508.6
64.9% in comparison with 1Q11. EBITDA margin was the highlight and came
result was driven by the beef operation in Brazil, as shown by the
(Company) in the income statement (page 16 of this release). Gross
margin increased from 21.4% in 1Q11 to 26.8% in 1Q12, reflecting the increased availability of
r and improved price base of raw materials. EBITDA
R$514.4 million with EBITDA margin of 15.4% which demonstrates the synergy gains during 2011
operating costs.
1Q12
4Q11
%
1,757.6
1,517.0
15.9%
3,827.4
3,800.5
0.7%
508.6
407.7
24.7%
13.3%
10.7%
1Q12
4Q11
%
1,828.8
1,748.9
4.6%
190.6
195.9
-2.7%
559.1
553.3
1.0%
2,578.5
2,498.0
3.2%
275.8
239.7
15.1%
34.8
35.9
-3.1%
222.0
208.9
6.3%
532.5
484.5
9.9%
6.63
7.30
-9.2%
5.48
5.46
0.4%
2.52
2.65
-4.9%
10
1Q12, an increase of 6.2% in
, as a result of an increase in domestic sales prices and volumes.
was R$508.6 million, an increase of
highlight and came in at 13.3%.
operation in Brazil, as shown by the
in the income statement (page 16 of this release). Gross
margin increased from 21.4% in 1Q11 to 26.8% in 1Q12, reflecting the increased availability of
of raw materials. EBITDA at JBS Controller was
demonstrates the synergy gains during 2011
1Q11
%
1,747.1
0.6%
3,604.2
6.2%
308.3
64.9%
8.6%
1Q11
%
1,625.6
12.5%
183.0
4.1%
448.5
24.6%
2,257.1
14.2%
237.7
16.0%
32.9
5.6%
238.0
-6.8%
508.7
4.7%
6.84
-3.1%
5.56
-1.4%
1.88
34.0%
background image
Result
JBS Mercosul, 24% of JBS S.A. Net Revenues
Breakdown of Net Revenues
Exports
Net Revenue (million R$)
Fresh and Chilled Beef
Processed Beef
Others
TOTAL
Volume (thousand tons)
Fresh and Chilled Beef
Processed Beef
Others
TOTAL
Average Price (R$/Kg)
Fresh and Chilled Beef
Processed Beef
Others
Results for 1Q12
% of JBS S.A. Net Revenues
1Q12
4Q11
%
817.9
892.4
-8.3%
173.7
159.5
8.9%
257.3
250.5
2.7%
1,248.9
1,302.4
-4.1%
100.3
101.9
-1.7%
14.7
14.4
1.8%
16.1
16.1
-0.3%
131.0
132.5
-1.1%
8.16
8.75
-6.8%
11.84
11.07
7.0%
16.03
15.56
3.0%
11
1Q11
%
872.7
-6.3%
166.3
4.5%
308.1
-16.5%
1,347.0
-7.3%
114.4
-12.4%
17.8
-17.5%
14.5
10.9%
146.7
-10.7%
7.63
6.9%
9.35
26.7%
21.29
-24.7%
background image
Result
TABLES AND CHARTS

Graph I - JBS Consolidated Exports Distribution


Source: JBS






Table I - Breakdown of Production Costs by Business Unit (%)



Source: JBS








Russia
E.U 5.9%
Canada 4.7%
Chile 3.8%
Taiwan 2.5%
Others 20.7%
1Q12 (%)
Consolidated
Raw material (livestock)
Processing (including
ingredients and packaging)
Labor Cost
Results for 1Q12
JBS Consolidated Exports Distribution 1Q12
Breakdown of Production Costs by Business Unit (%)
US$ 2,039.7
million
Mexico 14.7%
Japan
Russia 9.1%
China, Hong Kong and
Vietnam
Africa and Middle East
South Korea 6.1%
Consolidated
JBS Mercosul
USA Beef
80.3%
86.2%
87.4%
10.6%
7.7%
5.5%
9.2%
6.2%
7.1%
12
14.7%
Japan 10.2%
China, Hong Kong and
Vietnam 14.4%
Africa and Middle East 7.9%
USA Pork
USA Chicken
83.0%
55.6%
7.3%
27.3%
9.7%
17.1%
background image
Result







To Contact JBS:
Avenida Marginal Direita do Tietê, 500
CEP: 05118
Results for 1Q12
Head Office
Avenida Marginal Direita do Tietê, 500
CEP: 05118-100 ­ São Paulo ­ SP
Brazil
Phone: (55 11) 3144-4000
Fax: (55 11) 3144-4171
www.jbs.com.br
Investor Relations
Phone: (55 11) 3144-4447
E-mail:
ir@jbs.com.br
www.jbs.com.br/ir
13
background image
Result
CONSOLIDATED FINANCIAL STATEMENT
JBS S.A.
Balance sheets
(In thousands of Reais)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade accounts receivable, net
Inventories
Biological assets
Recoverable taxes
Prepaid expenses
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Long-term assets
Credits with related parties
Judicial deposits and others
Recoverable taxes
Total long-term assets
Investments in subsidiaries
Property, plant and equipment, net
Intangible assets, net
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
The accompanying notes are an integral part of the financial statements
Results for 1Q12

CONSOLIDATED FINANCIAL STATEMENTS ­ JBS S.A.
March 31, 2012
Decem ber 31, 2011
March 31, 2012
3,177,231
3,612,867
5,150,828
1,840,663
1,883,093
4,431,010
1,691,558
1,544,261
5,594,857
-
-
171,295
1,421,441
1,330,609
1,916,537
13,099
8,148
138,013
219,142
256,225
467,021
8,363,134
8,635,203
17,869,561
611,629
88,505
498,069
167,347
104,207
411,653
560,558
562,027
622,664
1,339,534
754,739
1,532,386
6,254,220
7,561,574
8,057,574
7,803,582
15,364,157
9,531,393
9,531,506
12,478,965
23,843,187
24,896,662
27,843,122
25,182,721
25,651,401
29,375,508
33,545,855
34,286,604
47,245,069
The accompanying notes are an integral part of the financial statements
Company
14
JBS S.A.
March 31, 2012
Decem ber 31, 2011
5,150,828
5,288,194
4,431,010
4,679,846
5,594,857
5,405,705
171,295
209,543
1,916,537
1,690,311
138,013
131,033
467,021
526,649
17,869,561
17,931,281
498,069
552,197
411,653
389,947
622,664
626,126
1,532,386
1,568,270
-
-
15,364,157
15,378,714
12,478,965
12,532,619
27,843,122
27,911,333
29,375,508
29,479,603
47,245,069
47,410,884
Consolidated
background image
Result
JBS S.A.
Balance sheets
(In thousands of Reais)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable
Loans and financings
Income taxes
Payroll, social charges and tax obligation
Payables related to facilities acquisitions
Other current liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Loans and financings
Convertible debentures
Payroll, social charges and tax obligation
Payables related to facilities acquisitions
Deferred income taxes
Provision for lawsuits risk
Other non-current liabilities
TOTAL NON-CURRENT LIABILITIES
SHAREHOLDERS' EQUITY
Capital stock
Capital transaction
Capital reserve
Revaluation reserve
Profit reserves
Treasury shares
Valuation adjustments to shareholders' equity in subsidiaries
Accumulated translation adjustments in subsidiaries
Retained earnings
Attributable to controlling interest
Attributable to noncontrolling interest
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
The accom panying notes are an integral part of the financial statements
Results for 1Q12
March 31, 2012
Decem ber 31, 2011
March 31, 2012
838,313
666,375
3,193,850
4,226,873
4,574,702
5,018,748
-
-
429,565
347,863
1,182,422
136,040
10,589
136,040
443,724
466,402
423,232
6,074,515
6,065,931
9,964,485
6,210,233
7,095,193
13,667,344
1,283
1,283
-
-
673,041
48,881
2,048
413,298
289,798
797,598
142,325
140,975
197,295
26,412
27,554
243,696
6,842,432
7,556,851
15,629,138
21,506,247
21,506,247
21,506,247
(10,127)
(10,212)
(10,127)
373,366
985,944
373,366
100,100
101,556
100,100
1,440,799
1,440,799
1,440,799
-
(610,550)
Valuation adjustments to shareholders' equity in subsidiaries
126,972
127,071
126,972
Accumulated translation adjustments in subsidiaries
(3,025,984)
(2,877,033)
(3,025,984)
117,535
-
117,535
20,628,908
20,663,822
20,628,908
-
-
1,022,538
20,628,908
20,663,822
21,651,446
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
33,545,855
34,286,604
47,245,069
The accom panying notes are an integral part of the financial statements
Company
15
March 31, 2012
Decem ber 31, 2011
3,193,850
3,323,886
5,018,748
5,339,433
10,193
211,528
1,182,422
1,167,163
136,040
10,589
423,232
343,100
9,964,485
10,395,699
13,667,344
13,532,761
1,283
1,283
673,041
683,812
48,881
2,048
797,598
678,372
197,295
251,560
243,696
266,161
15,629,138
15,415,997
21,506,247
21,506,247
(10,127)
(10,212)
373,366
985,944
100,100
101,556
1,440,799
1,440,799
-
(610,550)
126,972
127,071
(3,025,984)
(2,877,033)
117,535
-
20,628,908
20,663,822
1,022,538
935,366
21,651,446
21,599,188
47,245,069
47,410,884
Consolidated
background image
Result
JBS S.A.
Statements of income for the three months period ended March 31, 2012 and 2011
(In thousands of Reais)
NET SALE REVENUE
Cost of goods sold
GROSS INCOME
OPERATING INCOME (EXPENSE)
General and administrative expenses
Selling expenses
Financial expense, net
Equity in earnings of subsidiaries
Other income (expenses), net
NET INCOME BEFORE TAXES
Current income taxes
Deferred income taxes
NET INCOME OF THE PERIOD
ATTRIBUTABLE TO:
Controlling interest
Noncontrolling interest
Net income basic per thousand shares - in reais
The accompanying notes are an integral part of the financial statements
Results for 1Q12
Statements of income for the three months period ended March 31, 2012 and 2011
2012
2011
3,350,379
3,172,007
(2,451,641)
(2,493,902)
898,738
678,105
(162,472)
(145,423)
(327,025)
(298,505)
(38,775)
(303,081)
(130,962)
195,505
75
2,894
(659,159)
(548,610)
239,579
129,495
750
748
(124,250)
16,725
(123,500)
17,473
116,079
146,968
Net income basic per thousand shares - in reais
39.16
59.17
The accompanying notes are an integral part of the financial statements
Company
16
2012
2011
16,011,080
14,672,740
(14,357,175)
(12,984,313)
1,653,905
1,688,427
(427,891)
(418,917)
(816,404)
(737,451)
(155,821)
(351,130)
-
-
(12,185)
(8,769)
(1,412,301)
(1,516,267)
241,604
172,160
16,643
(194,595)
(128,728)
112,360
(112,085)
(82,235)
129,519
89,925
116,079
146,968
13,440
(57,043)
129,519
89,925
39.16
59.17
Consolidated
background image
Result
JBS S.A.
(In thousands of Reais)
Cash flow from operating activities
Net income of the period attributable to controlling interest
Adjustments to reconcile loss to cash provided on operating activities
. Depreciation and amortization
. Allowance for doubtful accounts
. Equity in earnings of subsidiaries
. Loss (gain) on assets sales
. Deferred income taxes
. Current and non-current financial charges
. Provision for lawsuits risk
. Impairment
Decrease (increase) in operating assets
Trade accounts receivable
Inventories
Recoverable taxes
Other current and non-current assets
Related party receivable
Biological assets
Increase (decrease) operating liabilities
Trade accounts payable
Other current and non-current liabilities
Noncontrolling interest
Valuation adjustments to shareholders' equity in subsidiaries
Net cash provided by (used in) operating activities
Cash flow from investing activities
Additions to property, plant and equipment and intangible assets
Increase in investments in subsidiaries
Decrease in investments in subsidiaries
Proceeds received from termination agreement of Inalca JBS
Net effect of working capital of acquired (merged) company
Net cash provided by (used in) investing activities
Cash flow from financing activities
Proceeds from loans and financings
Payments of loans and financings
Capital transactions
Shares acquisition of own emission
Net cash provided by (used in) financing activities
Effect of exchange variation on cash and cash equivalents
Variance in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the period
The accompanying notes are an integral part of the financial statements
Statements of cash flows for the three months period ended March 31, 2012 and 2011
Results for 1Q12
2012
2011
Net income of the period attributable to controlling interest
116,079
146,968
Adjustments to reconcile loss to cash provided on operating activities
105,084
97,270
-
1,128
130,962
(195,505)
(75)
(1,525)
124,251
(16,725)
(297,993)
86,527
1,350
2,108
-
179,658
120,246
43,934
33,627
(147,297)
44,596
(44,593)
(76,027)
(31,007)
(46,039)
(347,365)
(87,495)
-
167,155
(33,372)
100,559
(217,471)
-
Valuation adjustments to shareholders' equity in subsidiaries
-
(78,956)
(261,935)
Additions to property, plant and equipment and intangible assets
(226,991)
(104,355)
-
(552,356)
871,887
Proceeds received from termination agreement of Inalca JBS
-
504,002
Net effect of working capital of acquired (merged) company
-
644,896
(152,709)
453,764
1,381,281
(1,453,397)
(1,739,270)
85
(2,028)
(55,398)
(1,001,576)
(413,387)
Effect of exchange variation on cash and cash equivalents
-
(435,636)
(828,031)
Cash and cash equivalents at the beginning of the year
3,612,867
3,000,649
Cash and cash equivalents at the end of the period
3,177,231
2,172,618
The accompanying notes are an integral part of the financial statements
Statements of cash flows for the three months period ended March 31, 2012 and 2011
Company
17
2012
2011
146,968
116,079
146,968
97,270
285,043
311,161
1,128
(2,086)
7,851
(195,505)
-
-
(1,525)
6,114
(1,863)
(16,725)
128,728
(112,360)
86,527
(219,501)
164,524
2,108
(15)
2,692
-
4,144
-
120,246
318,506
518,973
33,627
210,061
31,632
44,596
(273,759)
(105,371)
(76,027)
(225,116)
(84,412)
(46,039)
2,440
(90,819)
(87,495)
44,691
68,268
-
33,374
(10,642)
(33,372)
(104,951)
(430,175)
(217,471)
21,961
(264,225)
-
13,440
(57,043)
-
(77,156)
(72,655)
(261,935)
(36,509)
(496,469)
(104,355)
(291,965)
(315,305)
(552,356)
-
-
-
-
-
504,002
-
504,002
-
151
-
(152,709)
(291,814)
188,697
1,381,281
4,421,162
2,727,498
(1,739,270)
(4,211,525)
(2,860,053)
-
(263)
-
(55,398)
(1,680)
(55,398)
(413,387)
207,694
(187,953)
-
(16,737)
(21,573)
(828,031)
(137,366)
(517,298)
3,000,649
5,288,194
4,074,574
2,172,618
5,150,828
3,557,276
Consolidated
background image
Result
DISCLAIMER
This release contains forward-looking statements relating to the prospects of the business, estimates for
operating and financial results, and those related to growth prospects of JBS. These are
projections and, as such, are based exclusively on the expectations of JBS' management concerning
the future of the business and its continued access to capital to fund the Company's business plan. Such
forward-looking statements depend, substantial
regulations, competitive pressures, the performance of the Brazilian economy and the industry, among
other factors and risks disclosed in JBS' filed disclosure documents and are, therefore, subject to change
without prior notice.

Results for 1Q12

looking statements relating to the prospects of the business, estimates for
operating and financial results, and those related to growth prospects of JBS. These are
projections and, as such, are based exclusively on the expectations of JBS' management concerning
the future of the business and its continued access to capital to fund the Company's business plan. Such
looking statements depend, substantially, on changes in market conditions, government
regulations, competitive pressures, the performance of the Brazilian economy and the industry, among
other factors and risks disclosed in JBS' filed disclosure documents and are, therefore, subject to change
18
looking statements relating to the prospects of the business, estimates for
operating and financial results, and those related to growth prospects of JBS. These are merely
projections and, as such, are based exclusively on the expectations of JBS' management concerning
the future of the business and its continued access to capital to fund the Company's business plan. Such
ly, on changes in market conditions, government
regulations, competitive pressures, the performance of the Brazilian economy and the industry, among
other factors and risks disclosed in JBS' filed disclosure documents and are, therefore, subject to change