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Result
JBS S.A. (Bovespa: JBSS3)*
Net R
Consolidated EBITDA
Adjusted Net Income of R$213 million
2Q12 HIGHLIGHTS
JBS posted consolidated net revenue of R$18.5
Consolidated EBITDA was R$1,012.8
margin was 5.5%.
JBS Mercosul was the highlight
an increase of 19.4% over 2
R$630.3 million with an
JBS USA Chicken (Pilgrim's
billion and EBITDA of US$125.7
presented in 2Q11.
Adjusted net Income in the period
liabilities generated by goodwill (this
sells the investment that generated goodwill).
R$169.5 million.
The Company ended the
corresponding to more than
1
st
SEMESTER, 12 (1S12) HIGHLIGHTS
During the semester, net revenue totaled R$34.5 billion, 17.7% higher tha
Consolidated EBITDA was R$1,709.3 million
of the semester was 5.0%.
Adjusted net Income for the semester
liabilities generated by goodwill. First
million.
Strategic Events
Start up in the poultry indu
processing capacity of 1.1 million birds/day.
Ramp up of the beef business
8,000 head/day.
Independent listing of Vigor S.A. through the c
for the Acquisition of JBS Shares in Exchange for
JBS S.A. ("JBS") (Bovespa: JBSS3), the global leading producer of animal protein
quarter of 2012 (2Q12). For the purpose of analysis, this report considers the results for the quarter ended
and June, 2011 (2Q11). The consolidated results of JBS are presented in Brazilian Re
each business unit reports its results in the currency of the country in which it operates. The operations of JBS Australia
integral part of the subsidiary JBS USA and both results refer to the period of 13 wee
quantitative data, such as volumes and heads slaughtered, are not audited.
Results for 2Q12
São Paulo,
Net Revenue increased 26% in 2Q12
Consolidated EBITDA surpassed R$1.0 billion
Adjusted Net Income of R$213 million
ted net revenue of R$18.5 billion, 26.3% higher than 2
EBITDA was R$1,012.8 million, an increase of 72.3% compared to 2Q11.
highlight of the quarter reporting net revenue of R$
increase of 19.4% over 2Q11. EBITDA increased 47.3% over the same
EBITDA margin of 14.6%.
ilgrim's Pride Corporation ­ "PPC") posted net revenue of US$
billion and EBITDA of US$125.7 million in the period, reversing the n
in the period was R$212.9 million excluding
liabilities generated by goodwill (this deferred income tax is disbursed
the investment that generated goodwill). Reported consolidated net income
The Company ended the quarter with R$5.475 billion in cash
more than 110% of short-term debt.
HIGHLIGHTS
During the semester, net revenue totaled R$34.5 billion, 17.7% higher tha
onsolidated EBITDA was R$1,709.3 million in 1S12, which is 20.1% above 1S11. E
for the semester was R$453.2 million excluding deferred income tax
liabilities generated by goodwill. First half reported consolidated net income was R$285.6
Start up in the poultry industry in Brazil through the rental of Frangosul assets, with
1.1 million birds/day.
the beef business in Brazil adding new units with the capacity to process
Independent listing of Vigor S.A. through the conclusion of the Voluntary Public Tender Offer
Shares in Exchange for Vigor Shares.
JBS S.A. ("JBS") (Bovespa: JBSS3), the global leading producer of animal protein announces today its results for the second
. For the purpose of analysis, this report considers the results for the quarter ended
The consolidated results of JBS are presented in Brazilian Real (R$) and when separately analyzed,
each business unit reports its results in the currency of the country in which it operates. The operations of JBS Australia
integral part of the subsidiary JBS USA and both results refer to the period of 13 weeks ended
quantitative data, such as volumes and heads slaughtered, are not audited.
1
São Paulo, August 14th, 2012
R$1.0 billion
illion, 26.3% higher than 2Q11.
an increase of 72.3% compared to 2Q11. EBITDA
net revenue of R$4,317.7 million,
the same period and was
) posted net revenue of US$2.0
million in the period, reversing the negative result
excluding deferred income tax
deferred income tax is disbursed only if the company
onsolidated net income was
billion in cash and cash equivalent,
During the semester, net revenue totaled R$34.5 billion, 17.7% higher than 1S11.
, which is 20.1% above 1S11. EBITDA margin
was R$453.2 million excluding deferred income tax
consolidated net income was R$285.6
of Frangosul assets, with a
capacity to process about
onclusion of the Voluntary Public Tender Offer
nces today its results for the second
. For the purpose of analysis, this report considers the results for the quarter ended March, 2012 (1Q12)
al (R$) 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
ks ended June 24, 2012 (2Q12). The
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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
%
EBITDA Margin (%)
Net sales (R$ billion)
Net sales (US$ billion)
EBITDA (R$ million)
EBITDA (US$ million)
JBS Mercosul
JBS USA
(Including Australia)
4.0
4.2
2Q11
3Q11
3.6
3.9
3.8
3.8
4.3
2Q11
3Q11
4Q11
1Q12
2Q12
427.9 453.8 407.7
508.6
630.3
11.8% 11.6%
10.7%
13.3%
14.6%
- 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
2Q11
3Q11
4Q11
1Q12
2Q12
44.7
184.1
1.1%
4.4%
- 1 0 0
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
2Q11
3Q11
Performance by
Business Unit
Results for 2Q12
BY BUSINESS UNIT
Analysis of the principal financial indicators of JBS by Business Unit (in local currency)
2Q12
1Q12
%
4,266.9
4,078.8
4.6%
3,964.0
844.0
855.4
-1.3%
1,974.5
1,888.8
4.5%
1,992.7
4,317.7
3,827.4
12.8%
3,615.3
-9.1
-45.4
-
49.2
55.8
-11.9%
125.7
104.0
20.9%
630.3
508.6
23.9%
-0.2%
-1.1%
-
5.8%
6.5%
-
6.4%
5.5%
-
14.6%
13.3%
-
Net sales (US$ billion)
Net sales (US$ million)
EBITDA (US$ million)
EBITDA (US$ million)
JBS USA
(Including Australia)
JBS USA
4.2
4.5
4.1
4.3
3Q11
4Q11
1Q12
2Q12
846.0 867.1
923.1 855.4 844.0
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
2Q11
3Q11
4Q11
1Q12
2Q12
184.1
223.6
-45.4
-9.1
4.4%
5.0%
-1.1%-0.2%
- 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 %
3Q11
4Q11
1Q12
2Q12
83.6
75.9
77.0
55.8
49.2
9.9%
8.8%
8.3%
6.5% 5.8%
- 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
2Q11
3Q11
4Q11
1Q12
2Q12
2
Analysis of the principal financial indicators of JBS by Business Unit (in local currency)
2Q11
%
3,964.0
7.6%
845.8
-0.2%
1,992.7
-0.9%
3,615.3
19.4%
44.7
-
83.6
-41.2%
-47.6
-
427.9
47.3%
1.1%
-
9.9%
-
-2.4%
-
11.8%
-
Net sales (US$ billion)
EBITDA (US$ million)
JBS USA (PPC)
2.0
1.9
1.8
1.9
2.0
2Q11
3Q11
4Q11
1Q12
2Q12
-47.6 -31.4
22.6
104.0 125.7
-2.4%
-1.7%
1.2%
5.5% 6.4%
- 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
2Q11
3Q11
4Q11
1Q12
2Q12
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Result

ANALYSIS OF CONSOLIDATED RESULT
Consolidated analysis of the principal operational indicators of JBS
(1)
Excluding the Parent Company's Income and Social Contribution.

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)
Adjusted Net Income (Loss)
(1)
EBITDA
EBITDA Margin
Net Income (Loss) per share
Heads slaughtered (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 2Q12
ANALYSIS OF CONSOLIDATED RESULTS
Consolidated analysis of the principal operational indicators of JBS
Income and Social Contribution.
and Sales Volume*
2Q12
1Q12
%
18.468,3
16.011,1
15,3%
(16.350,8)
(14.357,2)
13,9%
2.117,5
1.653,9
28,0%
11,5%
10,3%
(932,4)
(816,4)
14,2%
(518,8)
(427,9)
21,2%
(389,4)
(155,8)
149,9%
22,0
(12,2)
299,0
241,6
23,8%
(114,4)
(112,1)
2,1%
Participation of non-controlling shareholders
15,1
13,4
12,2%
169,5
116,1
46,0%
212,9
240,3
-11,4%
1.012,8
696,5
45,4%
5,5%
4,3%
0,06
0,04
52,1%
2Q12
1Q12
%
4,083.8
3,717.9
9.8%
3,147.5
3,307.0
-4.8%
1,000.9
934.8
7.1%
1,723.7
1,706.1
1.0%
1,447.5
1,449.3
-0.1%
35.8
34.8
2.9%
240.4
222.0
8.3%
516.7
448.9
15.1%
479.9
418.2
14.8%
15.8
14.7
7.6%
21.0
16.1
30.9%
2,240.5
2,155.0
4.0%
3
%
2Q11
%
15,3%
14.621,8
26,3%
13,9%
(13.202,3)
23,8%
28,0%
1.419,5
49,2%
-
9,7%
-
14,2%
(754,7)
23,5%
21,2%
(386,1)
34,4%
149,9%
(590,9)
-34,1%
-
(5,5)
-
23,8%
(317,7)
-
2,1%
110,7
-
12,2%
(26,2)
-
46,0%
(180,8)
-
-11,4%
(246,0)
-
45,4%
587,7
72,3%
-
4,0%
-
52,1%
(0,07)
-
2Q11
%
3,884.6
5.1%
3,072.1
2.5%
839.6
11.3%
1,610.2
7.0%
1,348.8
7.3%
34.0
5.2%
227.4
5.7%
501.9
2.9%
450.3
6.6%
19.6
-19.5%
32.0
-34.4%
2,112.2
6.1%
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Result
CONSOLIDATED RESULTS
Net Revenue

JBS consolidated net revenue in 2Q12 was R$18,468.3
2Q11 when the net revenue was
in the Brazilian Beef Business, the
the real against the U.S. dollar in the period
consolidated results.

In 2Q12, approximately 76% of global sales
Company has operations and 24% came from exports.

Year to date (1S12) net revenue totaled R$34

EBITDA

EBITDA was R$1,012.8 million in 2Q12
consolidated performance was due to
of 47.3% over 2Q11, and also due to the improvement presented by Pilgrim's. The positive result
arising from these two business units was more than
USA Beef unit. JBS consolidated EBITDA margin was 5.5%

Year to date consolidated EBITDA was R$1,709.3 million
1S11. EBITDA margin in first half of the year

Financial Results

Financial results were R$389.4 million
variation in the period was R$689.2
against the USD in the period. On the other hand,
due to hedge positions at the Company. This result reflect
management to minimize the effects of currency fluctuations.


Net Income

Adjusted net Income in 2Q12 was R$212.9 million excluding deferred income tax liabilities
generated by goodwill (this deferred income tax is disbursed
investment that generated goodwill)

For the first half of 2012, adjusted net Income was R$453.2 million excluding deferred income tax
liabilities generated by goodwill. First half

Capital Expenditure (Capex)

Total capital expenditure of JBS in 2Q12
higher than 1Q12. The main investments were in the start up of
expansion of beef processing capacity
distribution capacity, principally in the U.S.


Results for 2Q12
n 2Q12 was R$18,468.3 million, an increase of
net revenue was R$14,621.8 million. This expansion was caused
revenue increase in the JBS USA Beef unit and the devaluation of
the real against the U.S. dollar in the period, all of which caused a positive effect in the Company's
of global sales were generated domestically in the markets
% came from exports.
totaled R$34.5 billion, 17.7% higher than the same period last year
2Q12, an increase of 72.3% compared to 2
due to the result achieved by JBS Mercosul,
due to the improvement presented by Pilgrim's. The positive result
arising from these two business units was more than sufficient to offset the performance in the JBS
onsolidated EBITDA margin was 5.5% in the quarter.
olidated EBITDA was R$1,709.3 million, which represents an increase of 20.1% over
of the year was 5.0%.
million in 2Q12, an improvement of 34.1% over 2
was R$689.2 million negative, driven by 10.9% depreciation of the Real
in the period. On the other hand, derivatives results were
the Company. This result reflects the Company's
the effects of currency fluctuations.
Adjusted net Income in 2Q12 was R$212.9 million excluding deferred income tax liabilities
deferred income tax is disbursed only if the
investment that generated goodwill). Consolidated reported net income was R$169.5 million.
adjusted net Income was R$453.2 million excluding deferred income tax
bilities generated by goodwill. First half reported consolidated net income was R$285.6 million.
in 2Q12 in property, plant, and equipment was R$403.1 million, 38
vestments were in the start up of the chicken operation
ion of beef processing capacity both in Brazil as well as in the addition of
in the U.S.
4
increase of 26.3% compared to
This expansion was caused by the performance
revenue increase in the JBS USA Beef unit and the devaluation of
which caused a positive effect in the Company's
in the markets were the
the same period last year.
increase of 72.3% compared to 2Q11. The improved
the result achieved by JBS Mercosul, which posted growth
due to the improvement presented by Pilgrim's. The positive result
to offset the performance in the JBS
nts an increase of 20.1% over
34.1% over 2Q11. Exchange rate
depreciation of the Real
positive R$615.3 million,
Company's solid strategy of risk
Adjusted net Income in 2Q12 was R$212.9 million excluding deferred income tax liabilities
if the company sells the
Consolidated reported net income was R$169.5 million.
adjusted net Income was R$453.2 million excluding deferred income tax
consolidated net income was R$285.6 million.
ant, and equipment was R$403.1 million, 38%
the chicken operations and in the
in the addition of storage and
*
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Result
Indebtedness

The Company's gross debt increased 11.1% compared to 1Q12, due to the devaluation of the
Brazilian Real against the US dollar, which was 10.9% in
variation, gross debt remained stable.

JBS consolidated net debt to EBITDA
gross debt, reflecting the effect of exchange rate variation
the last twelve months. Eliminating the
reduced to less than 4.0x.

JBS Consolidated Indebtedness
(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
3.60
-100
100
300
500
700
900
1100
1300
1500
2Q11
.
Leverage
Leverage
.
Results for 2Q12
The Company's gross debt increased 11.1% compared to 1Q12, due to the devaluation of the
dollar, which was 10.9% in the same period. Excluding the FX
stable.
net debt to EBITDA LTM improved slightly in the quarter
effect of exchange rate variation, was offset by an EBITDA increase in
the last twelve months. Eliminating the FX variation in the result, the leverage would
EBITDA LTM. U.S. dollar exchange rate of the last day of the period.
6/30/12
3/31/12
20,752.1
18,686.1
4,819.2
5,018.7
15,932.9
13,667.3
5,475.2
5,150.8
15,276.9
13,535.3
4.27x
4.04
4.00
4.30
4.27
3Q11
4Q11
1Q12
2Q12
EBITDA
5
The Company's gross debt increased 11.1% compared to 1Q12, due to the devaluation of the
the same period. Excluding the FX
in the quarter. The increase in the
, was offset by an EBITDA increase in
in the result, the leverage would have
3/31/12
Var.%
18,686.1
11.1%
5,018.7
-4.0%
13,667.3
16.6%
5,150.8
6.3%
13,535.3
12.9%
4.30x
0
1
2
3
4
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Result

Analysis of Consolidated Net Debt in
Converting the Company's total
debt without the effects of exchange rate
the debt and revenues come from JBS's overseas operations,
USD can be observed in the last twelve months.

Cash Position
The Company ended the quarter with R$5.
to more than 110% of short-term debt, which demonstrates a comfortable liquidity.

The percentage of short-term debt in relation to total debt fell
Source: JBS



R$ million
Consolidated Net Debt in R$
Exchange Rate
Consolidated Net Debt in US$
23%
27%
28%
28%
2Q12
1Q12
4Q11
3Q11
Short Term
ST / LT Debt Profile
Results for 2Q12
ysis of Consolidated Net Debt in USD
total net debt from Real to U.S. Dollar to analyze
of exchange rate variations, considering that a
from JBS's overseas operations, a reduction of 3.0% of
the last twelve months.
The Company ended the quarter with R$5.475 billion in cash or cash equivalent,
term debt, which demonstrates a comfortable liquidity.
term debt in relation to total debt fell from 27% in 1Q12 to
2Q11
3Q11
4Q11
12,164.1
13,654.4
13,584.0
1.5611
1.8544
1.8758
7,792.0
7,363.2
7,241.7
27%
28%
28%
77%
73%
72%
72%
Long Term
ST / LT Debt Profile
6
analyze the evolution of
considering that a significant portion of
a reduction of 3.0% of debt in
billion in cash or cash equivalent, corresponding
term debt, which demonstrates a comfortable liquidity.
from 27% in 1Q12 to 23% in 2Q12.
1Q12
2Q12
13,535.3
15,276.9
1.8221
2.0213
7,428.4
7,558.0
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Result
ANALYSIS OF RESULTS BY BUSINESS UNIT
JBS USA Beef (including Australia),


Net revenue for this business unit
This result reflects an increase of 4.3%
with prices 7.1% higher. Compared to 1Q12
higher export volumes.

Although EBITDA was negative US$9.1
the 1Q12 number, which was negative US$45.4 million. Margins remained under pressure during
the period due to the high price of raw materials. Howev
towards improving margins in the sector with the decrease of 4% in average cattle
relation to 1Q12, a movement that was more
relation to average selling prices in 2Q12 was the improvement in the industry dynamics
can be perceived by the 4% reduction in average weekly slaughter
same period last year.

The Company believes in the recovery of margins in this sector through
between supply and demand and improved flow of raw material in the second half of the
year. The administration keeps its focus on operating with low cost, with emphasis on increasing
profitability of the operation and

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 2Q12
ANALYSIS OF RESULTS BY BUSINESS UNIT
JBS USA Beef (including Australia),
46% of JBS S.A. Net Revenue
for this business unit was US$4,266.9 million in 2Q12, outperforming 2Q11
of 4.3% in volume sold in the U.S. domestic market, combined
with prices 7.1% higher. Compared to 1Q12, revenue increased 4.6%, as a consequence
Although EBITDA was negative US$9.1 million in 2Q12, there was an improvement
, which was negative US$45.4 million. Margins remained under pressure during
the period due to the high price of raw materials. However, this result demonstrates a
margins in the sector with the decrease of 4% in average cattle
relation to 1Q12, a movement that was more intensified in June. Another significant factor in
relation to average selling prices in 2Q12 was the improvement in the industry dynamics
can be perceived by the 4% reduction in average weekly slaughter when compared with
The Company believes in the recovery of margins in this sector through
between supply and demand and improved flow of raw material in the second half of the
year. The administration keeps its focus on operating with low cost, with emphasis on increasing
profitability of the operation and the pursuit of tailor made customers / market
2Q12
1Q12
%
2,027.3
1,960.3
3.4%
4,266.9
4,078.8
4.6%
-9.1
-45.4
-
-0.2%
-1.1%
2Q12
1Q12
%
3,138.8
3,105.4
1.1%
833.7
881.3
-5.4%
3.76
3.52
6.8%
2Q12
1Q12
%
1,128.1
973.3
15.9%
286.7
249.4
15.0%
3.93
3.90
0.8%
7
, outperforming 2Q11 by 7.6%.
volume sold in the U.S. domestic market, combined
, as a consequence of
n improvement compared to
, which was negative US$45.4 million. Margins remained under pressure during
er, this result demonstrates a trend
margins in the sector with the decrease of 4% in average cattle prices in
June. Another significant factor in
relation to average selling prices in 2Q12 was the improvement in the industry dynamics that
when compared with the
The Company believes in the recovery of margins in this sector through a better balance
between supply and demand and improved flow of raw material in the second half of the
year. The administration keeps its focus on operating with low cost, with emphasis on increasing
/ markets for each item.
2Q11
%
2,111.9
-4.0%
3,964.0
7.6%
44.7
-
1.1%
2Q11
%
2,811.8
11.6%
799.7
4.3%
3.52
7.1%
2Q11
%
1,152.2
-2.1%
291.3
-1.6%
3.96
-0.5%
background image
Result
JBS USA Pork, 9% of JBS S.A. Net Revenue

Net revenue in the pork business
increase in the number of animals slaughtered
prices especially in the export market
the decrease in the number of animals slaughtered
EBITDA was US$49.2 million in 2
influenced by the reduction of av
material in the period.
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 2Q12
% of JBS S.A. Net Revenue
in the pork business for the quarter was US$844.0 million, 0.2% below 2
increase in the number of animals slaughtered year on year was offset by lower average selling
market. Compared to 1Q12, revenue reduced by
the decrease in the number of animals slaughtered resulting in reduced sales
2Q12 with an EBITDA margin of 5.8%. The quarterly result was
influenced by the reduction of average selling prices in general due to oversupply of raw
2Q12
1Q12
%
3,147.5
3,307.0
-4.8%
844.0
855.4
-1.3%
49.2
55.8
-11.9%
5.8%
6.5%
2Q12
1Q12
%
687.7
697.5
-1.4%
287.6
292.3
-1.6%
2.39
2.39
0.2%
2Q12
1Q12
%
156.3
157.9
-1.0%
67.6
68.5
-1.3%
2.31
2.30
0.3%
8
million, 0.2% below 2Q11. The
on year was offset by lower average selling
revenue reduced by 1.3% due to
sales volume.
The quarterly result was
due to oversupply of raw
2Q11
%
3,072.1
2.5%
845.8
-0.2%
83.6
-41.2%
9.9%
2Q11
%
701.4
-1.9%
279.9
2.7%
2.51
-4.6%
2Q11
%
144.4
8.2%
52.9
27.8%
2.73
-15.3%
background image
Result
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA),
of JBS S.A. Net Revenue

Net revenue in the 2Q12 was US$1,974.5
the quarter was US$125.7 million, reversing the
The results for the quarter reinforced the
PPC, with an expansion of EBITDA margin, which
previous quarter, due to consistent improvement in selling prices
income at PPC was US$69.4 million in the period.
restructuring that has been developed
financial expenses in 2Q12 compared to 2Q11
sales expenses during the same period

Over the past 60 days, there was a sharp rise in grain prices, bringing a challenging scenario for
the U.S. poultry industry which should
believes that the industry has
production costs to selling prices, thus preserving the profitability of the business.


Highlights (US GAAP)
US$ million
Net Revenue
EBITDA
EBITDA margin %
Results for 2Q12
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA),
was US$1,974.5 million, practically stable compared to 2
million, reversing the negative result of minus US$47.6
quarter reinforced the trend towards the resumption of positive margins
EBITDA margin, which increased to 6.4% in 2Q12
, due to consistent improvement in selling prices in the domestic market. Net
$69.4 million in the period. It is also a highlight the effectiveness of the
restructuring that has been developed at PPC, which can be observed
expenses in 2Q12 compared to 2Q11, besides the 14% reduction in administrative and
the same period.
past 60 days, there was a sharp rise in grain prices, bringing a challenging scenario for
should be perceived mainly in 4Q12. However, the Company
believes that the industry has the instruments and will work to pass on
production costs to selling prices, thus preserving the profitability of the business.

2Q12
1Q12
%
1,974.5
1,888.8
4.5%
125.7
104.0
20.9%
6.4%
5.5%
9
JBS USA Chicken (Pilgrim's Pride Corporation, a US listed Company controlled by JBS USA), 21%
stable compared to 2Q11. EBITDA in
US$47.6 million in 2Q11.
resumption of positive margins at
6.4% in 2Q12 from 5.5% in the
the domestic market. Net
the effectiveness of the
observed by a 9% reduction in
reduction in administrative and
past 60 days, there was a sharp rise in grain prices, bringing a challenging scenario for
mainly in 4Q12. However, the Company
work to pass on the increase in
production costs to selling prices, thus preserving the profitability of the business.
2Q11
%
1,992.7
-0.9%
-47.6
-
-2.4%
background image
Result
JBS Mercosul, 24% of JBS S.A. Net Revenue

Net revenue at JBS Mercosul came in at
comparison with 2Q11 and 12.8% higher than 1Q12,
number of cattle slaughtered combined with

EBITDA totaled R$630.3 million in 2Q12, an increase of 47.3% over the same quarte
Compared to 1Q12, EBITDA increased
and reached 14.6% in the quarter. The result of this business unit reflects an improved cattle
cycle in Brazil and the Company's efforts to enhance
synergies.

JBS Management remains confident in the improvement of the cattle cycle in Brazil and in the
increase of availability of livestock in the coming years.

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 2Q12
% of JBS S.A. Net Revenue
came in at R$4,317.7 million in 2Q12, an
and 12.8% higher than 1Q12, principally due to
combined with higher sales volumes.
EBITDA totaled R$630.3 million in 2Q12, an increase of 47.3% over the same quarte
1Q12, EBITDA increased 23.9%. EBITDA margin at JBS Mercosul
and reached 14.6% in the quarter. The result of this business unit reflects an improved cattle
nd the Company's efforts to enhance operational efficiencies and to capture
remains confident in the improvement of the cattle cycle in Brazil and in the
availability of livestock in the coming years.
2Q12
1Q12
%
2,056.6
1,757.6
17.0%
1,772.7
4,317.7
3,827.4
12.8%
3,615.3
630.3
508.6
23.9%
427.9
14.6%
13.3%
11.8%
2Q12
1Q12
%
1,965.4
1,828.8
7.5%
1,686.1
197.8
190.6
3.8%
159.6
585.9
559.1
4.8%
457.4
2,749.1
2,578.5
6.6%
2,303.1
326.3
275.8
18.3%
269.2
35.8
34.8
2.9%
240.4
222.0
8.3%
227.4
602.4
532.5
13.1%
530.6
6.02
6.63
-9.2%
5.53
5.48
0.9%
2.44
2.52
-3.2%
10
Q12, an increase of 19.4% in
principally due to the increase in the
EBITDA totaled R$630.3 million in 2Q12, an increase of 47.3% over the same quarter last year.
at JBS Mercosul was a highlight
and reached 14.6% in the quarter. The result of this business unit reflects an improved cattle
onal efficiencies and to capture
remains confident in the improvement of the cattle cycle in Brazil and in the
2Q11
%
1,772.7
16.0%
3,615.3
19.4%
427.9
47.3%
11.8%
2Q11
%
1,686.1
16.6%
159.6
23.9%
457.4
28.1%
2,303.1
19.4%
269.2
21.2%
34.0
5.2%
227.4
5.7%
530.6
13.5%
6.26
-3.8%
4.69
17.9%
2.01
21.4%
background image
Result
JBS Mercosul, 24% of JBS S.A. Net Revenues
Breakdown of Net Revenues
Exports
Net Revenue (million R$)
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 2Q12
% of JBS S.A. Net Revenues
2Q12
1Q12
%
1,025.6
817.9
25.4%
822.1
190.4
173.7
9.6%
189.6
352.6
257.3
37.0%
300.5
1,568.6
1,248.9
25.6%
1,312.2
125.6
100.3
25.3%
106.1
15.8
14.7
7.6%
21.0
16.1
30.9%
162.4
131.0
24.0%
157.8
8.17
8.16
0.1%
12.06
11.84
1.8%
16.78
16.03
4.7%
11
2Q11
%
822.1
24.7%
189.6
0.4%
300.5
17.3%
1,312.2
19.5%
106.1
18.3%
19.6
-19.5%
32.0
-34.4%
157.8
2.9%
7.75
5.4%
9.67
24.7%
9.38
78.9%
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








E.U 6.1%
Canada 4.8%
Chile 3.6%
Taiwan 2.1%
Others 15.1%
South Korea 6.2%
Venezuela 1.9%
2Q12 (%)
Consolidated
Raw material (livestock)
Processing (including
ingredients and packaging)
Labor Cost
Results for 2Q12
JBS Consolidated Exports Distribution 1S12
Breakdown of Production Costs by Business Unit (%)
US$4,387
million
Mexico
Russia 9.3%
Africa and Middle East
6.2%
Consolidated
JBS Mercosul
USA Beef
80.4%
85.8%
87.6%
10.3%
7.9%
5.2%
9.3%
6.4%
7.2%
12
Mexico 15.5%
Japan 11.7%
China, Hong Kong and
Vietnam 14.6%
Africa and Middle East 9.1%
USA Pork
USA Chicken
83.7%
56.2%
7.2%
26.3%
9.1%
17.4%
background image
Result













To Contact JBS:
Avenida Marginal Direita do Tietê, 500
CEP: 05118
Results for 2Q12
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
Biological assets
Recoverable taxes
Judicial deposits and others
Total long-term assets
Investments in subsidiaries and in associates
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 2Q12

CONSOLIDATED FINANCIAL STATEMENTS ­ JBS S.A.
June 30, 2012
Decem ber 31,
2011
June 30, 2012
3,955,537
3,612,867
5,475,236
2,249,386
1,883,093
5,045,674
1,912,149
1,544,261
6,333,557
-
-
1,416,568
1,330,609
1,787,350
17,165
8,148
269,497
256,225
9,820,302
8,635,203
19,550,627
622,997
88,505
-
-
558,281
562,027
183,843
104,207
1,365,121
754,739
1,975,604
Investments in subsidiaries and in associates
5,991,761
7,561,574
8,240,672
7,803,582
15,661,692
9,530,666
9,531,506
11,737,883
23,763,099
24,896,662
27,659,645
25,128,220
25,651,401
29,635,249
34,948,522
34,286,604
49,185,876
The accompanying notes are an integral part of the financial statements
Company
14
JBS S.A.
June 30, 2012
Decem ber 31,
2011
5,475,236
5,288,194
5,045,674
4,679,846
6,333,557
5,405,705
253,007
209,543
1,787,350
1,690,311
134,535
131,033
521,268
526,649
19,550,627
17,931,281
716,870
552,197
33,700
-
622,733
626,126
602,301
389,947
1,975,604
1,568,270
260,070
-
15,661,692
15,378,714
11,737,883
12,532,619
27,659,645
27,911,333
29,635,249
29,479,603
49,185,876
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 accompanying notes are an integral part of the financial statements
Results for 2Q12
June 30, 2012
Decem ber 31,
2011
June 30, 2012
885,636
666,375
4,177,140
4,574,702
-
-
437,963
347,863
131,445
10,589
555,859
466,402
6,188,043
6,065,931
7,707,714
7,095,193
1,280
1,283
122,504
-
52,094
2,048
456,226
289,798
144,994
140,975
15,348
27,554
8,500,160
7,556,851
21,506,247
21,506,247
79,064
(10,212)
373,366
985,944
99,205
101,556
1,440,799
1,440,799
(938,013)
(610,550)
Valuation adjustments to shareholders' equity in subsidiaries
108,581
127,071
Accumulated translation adjustments in subsidiaries
(2,696,844)
(2,877,033)
287,914
-
20,260,319
20,663,822
-
-
20,260,319
20,663,822
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
34,948,522
34,286,604
The accompanying notes are an integral part of the financial statements
Company
15
June 30, 2012
Decem ber 31,
2011
3,513,481
3,323,886
4,819,190
5,339,433
10,576
211,528
1,246,611
1,167,163
131,445
10,589
515,350
343,100
10,236,653
10,395,699
15,932,936
13,532,761
1,280
1,283
583,997
683,812
52,094
2,048
832,121
678,372
197,977
251,560
288,194
266,161
17,888,599
15,415,997
21,506,247
21,506,247
79,064
(10,212)
373,366
985,944
99,205
101,556
1,440,799
1,440,799
(938,013)
(610,550)
108,581
127,071
(2,696,844)
(2,877,033)
287,914
-
20,260,319
20,663,822
800,305
935,366
21,060,624
21,599,188
49,185,876
47,410,884
Consolidated
background image
Result
JBS S.A.
Statements of income for the three months period ended June 30, 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 (LOSS) BEFORE TAXES
Current income taxes
Deferred income taxes
NET INCOME (LOSS) OF THE PERIOD
ATTRIBUTABLE TO:
Controlling interest
Noncontrolling interest
Net income (loss) basic per thousand shares - in reais
Net income (loss) diluted per thousand shares - in reais
The accompanying notes are an integral part of the financial statements
Results for 2Q12
Statements of income for the three months period ended June 30, 2012 and 2011
2012
2011
3,961,554
3,257,335
(2,897,927)
(2,464,197)
1,063,627
793,138
(220,255)
(142,496)
(353,286)
(312,700)
(546,308)
(536,110)
261,296
(49,580)
7,339
1,039
(851,214)
(1,039,847)
212,413
(246,709)
459
686
(43,388)
65,267
(42,929)
65,953
169,484
(180,756)
Net income (loss) basic per thousand shares - in reais
59.55
(73.00)
Net income (loss) diluted per thousand shares - in reais
59.55
(60.86)
The accompanying notes are an integral part of the financial statements
Company
16
2012
2011
18,468,291
14,621,805
(16,350,838)
(13,202,332)
2,117,453
1,419,473
(518,756)
(386,065)
(932,374)
(754,724)
(389,366)
(590,894)
-
-
22,048
(5,490)
(1,818,448)
(1,737,173)
299,005
(317,700)
(64,060)
(101,077)
(50,387)
211,806
(114,447)
110,729
184,558
(206,971)
169,484
(180,756)
15,074
(26,215)
184,558
(206,971)
59.55
(73.00)
59.55
(60.86)
Consolidated
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Result
JBS S.A.
(In thousands of Reais)
Cash flow from operating activities
Net income (loss) 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
Net effect of Vigor deconsolidation
Decrease in investments in subsidiaries
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 June 30, 2012 and 2011
Results for 2Q12
2012
2011
Net income (loss) of the period attributable to controlling interest
169,484
(180,756)
Adjustments to reconcile loss to cash provided on operating activities
107,162
114,432
(2,633)
3,729
(261,296)
49,580
(7,339)
(2,001)
43,388
(65,267)
689,955
146,802
2,669
1,347
-
741,390
67,866
(363,974)
84,770
(220,591)
(43,029)
(17,522)
(43,472)
(45,635)
(17,612)
(6,618)
(138,917)
-
37,144
52,400
268,805
185,870
-
Valuation adjustments to shareholders' equity in subsidiaries
-
392,999
147,876
Additions to property, plant and equipment and intangible assets
(282,687)
(170,548)
-
14,618
1,391,853
Net effect of working capital of acquired / merged company
-
718
(268,069)
1,222,023
2,434,131
2,097,002
(1,780,881)
(2,250,626)
450
(324)
(44,019)
653,376
(197,643)
Effect of exchange variation on cash and cash equivalents
-
778,306
1,172,256
Cash and cash equivalents at the beginning of the year
3,177,231
2,172,618
Cash and cash equivalents at the end of the period
3,955,537
3,344,874
The accompanying notes are an integral part of the financial statements
Statements of cash flows for the three months period ended June 30, 2012 and 2011
Company
17
2012
2011
(180,756)
169,484
(180,756)
114,432
318,234
310,186
3,729
446
1,698
49,580
-
-
(2,001)
(4,471)
5,931
(65,267)
50,387
(211,806)
146,802
486,294
39,085
1,347
3,085
13,355
-
3,968
-
67,866
1,027,427
(22,307)
84,770
(466,601)
(125,555)
(43,029)
(496,041)
(227,729)
(43,472)
(5,005)
(81,021)
(17,612)
(36,551)
(48,654)
(138,917)
(159,307)
(126,298)
-
(99,946)
(109,428)
52,400
233,652
290,631
185,870
73,950
120,598
-
15,074
(26,215)
-
(3,824)
(32,256)
147,876
82,828
(388,234)
(170,548)
(403,060)
(277,118)
-
(211,856)
-
1,391,853
-
-
718
-
-
1,222,023
(614,916)
(277,118)
2,097,002
6,048,442
6,358,939
(2,250,626)
(5,284,937)
(4,204,965)
-
(7,070)
-
(44,019)
(324)
(44,019)
(197,643)
756,111
2,109,955
-
100,385
(41,697)
1,172,256
324,408
1,402,906
2,172,618
5,150,828
3,557,276
3,344,874
5,475,236
4,960,182
Consolidated
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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 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
forward-looking statements depend, substantially, on changes in m
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 2Q12
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
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
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
arket 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