background image
JBS S.A.
Results Presentation
1Q12
background image
JBS S.A.
background image
3
PAGE
JBS Ranking
1
Market Leader
2
Well-recognized
brands
Largest global beef and
lamb producer
1
st
Largest global leather
processor
1
st
Largest global chicken
producer
2
nd
Largest dairy
producer in Brazil
3
rd
Largest pork producer
in the US
3
rd
Source: JBS
background image
4
PAGE
Well-recognized Brands, symbols of quality
1
Market Leader
2
Well-recognized
brands
USA
Australia
Brazil
Argentina
background image
Perspectives for the animal protein market
background image
6
PAGE
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2006 2007 2008 2009 2010 2011 1Q11 1Q12
Beef and Veal exports
Average Price (US$/Ton)
Australian Beef Exports (tons)
Brazilian Beef Exports (tons)
US Beef and Veal Exports (tons)
Source: USDA, MLA & Secex
Brazil, Australia and the US continue to lead global beef exports
-5.6%
-0.1%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2006 2007 2008 2009 2010 2011 1Q11 1Q12
-1.0%
2.0%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
6.000
6.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2006 2007 2008 2009 2010 2011 1T11 1T12
-11.9%
17.1%
background image
7
PAGE
Source: USDA & Secex
Brazilian Chicken Exports (tons)
USA Chicken Exports (tons)
Chicken Exports
Average Price (US$/Ton)
Chicken Exports Brazil vs US
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
2006
2007
2008
2009
2010
2011
1Q11
1Q12
-2.6%
4.5%
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
2006
2007
2008
2009
2010
2011
1Q11
1Q12
13.5%
15.8%
background image
8
PAGE
Source: USDA & Secex
Brazilian Pork Exports (tons)
USA Pork Exports (tons)
Pork Exports
Average Price (US$/Ton)
Pork Exports US vs Brazil
0
500
1.000
1.500
2.000
2.500
3.000
3.500
0
300.000
600.000
900.000
1.200.000
1.500.000
1.800.000
2006
2007
2008
2009
2010
2011
1Q11
1Q12
-3.0%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
0
300.000
600.000
900.000
1.200.000
1.500.000
1.800.000
2006
2007
2008
2009
2010
2011
1Q11
1Q12
3.0%
19.7%
3.7%
background image
1Q12 Highlights
background image
10
PAGE
JBS posted consolidated net revenue of R$16.0 billion, 9.1% higher than 1Q11.
EBITDA was R$696.5 million. Consolidated EBITDA margin was 4.4%.
JBS Mercosul was highlight during the 1Q12 and posted net revenue of R$3,827.4 million, an increase of 6.2% over
1Q11. The EBITDA increased 64.9% over the same period and was R$508.6 million, EBITDA margin was 13.3%.
JBS USA Pork business unit net revenue totaled US$855.4 million, 2.2% higher than 1Q11. The EBITDA was
US$55.8 million.
The Company ended the quarter with R$5.15 billion in cash or cash equivalent, which represents more than 100%
of short-term debt.
(1) 19/03/2012
1Q12 Highlights
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$116.1 million.
background image
11
PAGE
Source: JBS
JBS Consolidated Results
1Q12
EBITDA
Net Revenue (R$ million)
EBITDA and EBITDA Margin (R$ million)
835.9
587.7
786.8
940.6
696.5
5.7
4.0
5.1
5.6
4.4
-12,0
8,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
1Q11
2Q11
3Q11
4Q11
1Q12
14,672.7
14,116.3
15,567.8
16,934.5
16,011.1
1Q11
2Q11
3Q11
4Q11
1Q12
-3.8%
+10.3%
+8.8%
-5.5%
-29.7%
+33.9%
+19.5%
-26.0%
EBITDA Margin (%)
background image
12
PAGE
Performance by Business Unit
Source: JBS
Quarterly Analysis
Net sales (R$ billion)
Net sales (US$ billion)
Net sales (US$ million)
Net sales (US$ billion)
EBITDA (R$ million)
EBITDA (US$ million)
EBITDA (US$ million)
EBITDA (US$ million)
EBITDA Margin (%)
JBS Mercosul
JBS USA
(Including Australia)
JBS USA
JBS USA (PPC)
1.9
2.0
1.9
1.8
1.9
1Q11
2Q11
3Q11
4Q11
1Q12
3.8
4.0
4.2
4.5
4.1
1Q11
2Q11
3Q11
4Q11
1Q12
3.6
3.6
3.9
3.8
3.8
1Q11
2Q11
3Q11
4Q11
1Q12
836.6 846.0 867.1
923.1 855.4
100,0
180,0
260,0
340,0
420,0
500,0
580,0
660,0
740,0
820,0
900,0
980,0
1060,0
1140,0
1220,0
1300,0
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%
-
25,0%
-
23,0%
-
21,0%
-
19,0%
-
17,0%
-
15,0%
-
13,0%
-
11,0%
-
9,0%
-
7,0%
-
5,0%
-
3,0%
-
1,0%
1,0%
3,0%
5,0%
7,0%
9,0%
-
200
-
100
0
100
200
300
400
500
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%
-
10,0%
-
8,0%
-
6,0%
-
4,0%
-
2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
0
100
200
300
400
500
600
700
800
1Q11 2Q11 3Q11 4Q11 1Q12
269.7
44.7
184.1
223.6
-45.4
7.1%
1.1%
4.4% 5.0%
-1.1%
-
30,0%
-
28,0%
-
26,0%
-
24,0%
-
22,0%
-
20,0%
-
18,0%
-
16,0%
-
14,0%
-
12,0%
-
10,0%
-
8,0%
-
6,0%
-
4,0%
-
2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
-
100
0
100
200
300
400
500
1Q11 2Q11 3Q11 4Q11 1Q12
101.7
83.6 75.9 77.0
55.8
12.2%
9.9%
8.8% 8.3% 6.5%
-
23,0%
-
19,0%
-
15,0%
-
11,0%
-
7,0%
-
3,0%
1,0%
5,0%
9,0%
13,0%
-
0,023
99,977
199,977
1Q11 2Q11 3Q11 4Q11 1Q12
background image
13
PAGE
Source: JBS
JBS Consolidated Exports Distribution in 1Q12
Approximately US$ 2.0 billion in 1Q12
US$ 2,039.7
million
Mexico 14.7%
Japan 10.2%
Russia 9.1%
E.U 5.9%
Canada 4.7%
Chile 3.8%
Taiwan 2.5%
Others 20.7%
China, Hong Kong and
Vietnam 14.4%
Africa and Middle East 7.9%
South Korea 6.1%
background image
14
PAGE
27%
28%
28%
27%
30%
73%
72%
72%
73%
70%
1Q12
4Q11
3Q11
2Q11
1Q11
Source: JBS
* subsidiary controlled by JBS with non-recourse debt.
Debt Profile
Net debt to EBITDA, excluding Pilgrim's Pride Corp. (PPC)* was 3.6x.
Net debt to EBITDA, including Pilgrim's Pride Corp. (PPC)* was 4.3x.
The Company ended the quarter with R$5.15 billion in cash or cash equivalent, which represents more than 100% of short-term debt.
Short Term
Long Term
ST / LT Debt Profile
3.1
3.6
4.0
4.0
4.3x
0
1
2
3
4
-100
100
300
500
700
900
1100
1300
1500
1Q11
2Q11
3Q11
4Q11
1Q12
.
Leverage
EBITDA
Leverage
.
LeverageEx-PPC
EBITDA Ex-PPC
3.1
3.2
3.0
3.0
3.6x
0
1
2
3
4
background image
15
PAGE
Amazon
Environmental
Satellite image
Social & Environmental
Purpose: reduce deforestation in the Amazon Biome; avoid
purchasing cattle from Environmentally Protected Areas EPAs,
Indigenous reserves and protected areas; eradication of slave
labor in Brazil.
JBS Brazil monitors a 100% of its cattle suppliers properties via
satellite geo-referencing (GPS monitoring).
After the property coordinates are collected, the data is keyed into
JBS's registry of cattle suppliers and is sent to an outsource company
to be analyzed by superimposing on a map constructed from satellite
images and the DETER
(1)
and PRODES
(2)
produced by Brazil's National
Institute for Space Research INPE.
JBS contains a database of almost 12,000 cattle ranches registered
in the Amazon Biome.
Satellite image monitoring of the Amazon Biome
JBS actions related to cattle traceability and the Amazon Biome
Sustainability
Source: JBS Sustainability Policy
(1)
Real Time Deforestation Detection
(2)
Legal Amazon Deforestation Monitoring Project
JBS SA participates in CDP - Carbon Disclosure Project.
Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.
background image
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.