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JBS DAY
November 14
th,
2012
Earnings Release 3Q12
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JBS S.A.
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3
PAGE
JBS S.A. at a Glance


Founded in the 1950's in Midwest of Brazil
IPO in 2007
Leading protein producer in the World
Net Revenue of R$53.8 billion accumulated in nine months of 2012
EBITDA of R$3.2 billion accumulated in nine month of 2012
Organic Growth of 16,0% in first 9 months of 2012 compared to 9M11
140,000 employees worldwide
307 production units in 5 continents
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4
PAGE
JBS Ranking
Largest global beef and
lamb producer
1
st
Largest global leather
processor
1
st
Largest global chicken
producer
1
st
Largest pork producer
in the US
3
rd
Source: JBS
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5
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Sustainable Growth
Adequate Capital Structure and Qualified Management to Promote Growth
Adequate the Capital
Structure
Debt to finance
Working Capital
Equity to finance
growth
Constructing a global
meat production
platform
Geographic
diversification in
regions with low
production costs
Protein diversification
Access to all consumer
markets
Leadership in countries
with production surplus
Integration of the
operations and focus on
cash generation
Reduction of Operating
Costs
Reduction of Working
Capital Needs
Capture of Synergies
Reduction of Cost of
Debt
Benchmark between
production platforms
Economies of Scale
Global Distribution Platform
And Value Added Products
Increase in the portfolio
with high value added
products
Recognition and leadership
in brand and quality
Direct service to retail and
foodservice
Higher margins and cash
generation
Investments in Marketing,
Research and
Development.
Building Global Brands
Long
Term
2008 to
2009
2010 to
2012
2005 to
2007
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6
PAGE
EBITDA
Margin
Our Strategy
RATIONALE
Associating quality and branding to
increase client loyalty
Customized and further processed
products for the end users
Expanding a global distribution
platform to reach end clients
Developed an efficient and
diversified global production
platform
Production platform
Sales and distribution platform
Value added products
Branding
Financial
Structure
Experienced
Management
Cost reduction,
process
optimization
Risk
Management
JBS's Value & Strategy
Done
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7
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Source: JBS
Presence in More Than 100 Countries, in 5 Continents
Slaughterhouses and
Production Units
Sales Office
Pork
Leather
Beef
Distribution Center
Biodiesel
Strategic Geographical Distribution ­ Exports to more than 150 countries and more the 300.000 clients
Chicken
Geographic
Presence and
Production
Capacity
81,400 heads/day
Beef
8.3 mm birds/day
Chicken
50,100 heads/day
Pork
18,265 heads/day
Lamb
86,300 hides/day
Leather
3
61
39
29
2
64
17
301
6
Lamb
3
Added Value
Products
4
Brands
2
Sales and
Distribution
Platform
1
Production
Platform
Brazil:
11 DCs
Australia
7 DCs
USA
30 DCs

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8
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FRESH BEEF
Swift Black
Swift Orgânico
Swift Maturatta
Swift Grill
Açougue Swift
Swift Linha Profissional
Swift
Friboi
INDUSTRIALIZED
Canned vegetable
Ham
Corned beef
Feijoada
Pâté
Jerky / Jerked Beef
Sausage
DEEP FROZEN PRODUCTS
Hamburger
Arab Cuisine Specialties
Meatballs
Potatoes
Lamb products
Fish products
High Value Added Products Portfolio
Top of Mind Brands
3
Added Value
Products
4
Brands
2
Sales and
Distribution
Platform
1
Production
Platform
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9
PAGE
Well-recognized Brands, symbols of quality
USA
Australia
Mercosul
3
Added Value
Products
4
Brands
2
Sales and
Distribution
Platform
1
Production
Platform
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Perspectives for the animal protein market
Global Scenario
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11
PAGE
World's Food* Surpluses and Deficits
1965
1990
1970
1995
1975
2000
1980
2005
1985
2010
Net intra-regional trade, million tonnes
150
100
50
0
50
100
150
* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.
Source: The Economist
North
America
South
America
Australia
Eastern Europe
and former
Soviet Union
Western
Europe
Asia
Middle East
& Africa
Central
America
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12
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59.1
76.5
58.8
75.9
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E
Beef Production and Consumption Forecasts - 2000/2021
Global Scenario
CAGR¹
1.2%
CAGR²
1.2%
Source: FAO
Note 1. Production CAGR / Note 2. Consumption CAGR
Beef Production
Beef Consumption
(million tons)
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13
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Source: USDA and JBS
US Cattle Herd and Beef Production
8
9
10
11
12
13
14
80
85
90
95
100
105
110
115
120
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010 2012E 2014E 2016E 2018E 2020E
US Cattle Herd (million head)
US Annual Beef Production (million tonnes cwt)
Substantial Recovery starting in 2014
Forecast
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Source: FAO
World Average Meat Consumption per Person, 60's to 2030
Consumption (kg/capita/year)
0
5
10
15
20
25
30
35
40
45
50
2030
1997-99
1964-66
Poultry
Pork
Lamb
Beef
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15
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Meat Consumption Forecast (Million tons)
Expected increase in meat demand by country groups
between 2010 - 2020
Emerging
Developed
Source: FAO - OECD
Meat Consumption Growth Forecast 2011-2020
19%
81%
Poultry
Pork
Sheep
Beef
2020
228.1
Ave 2008-10
278.2
2001
338.3
67.5
95.1
122.5
90.8
105.7
126.6
58.6
64.6
73.6
11.2
12.7
15.6
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16
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Source: FAO
Protein Consumption in the World Today is Half That Recommended by FAO
Per Capita Meat Consumption (Kg/per capita)
The population growth coupled with rising living standards around the world will drive an
increase in demand for proteins in the emerging middle class
48
62
69
80
88
121
42
82
China
Rússia
México
UE-27
Brasil
EUA
Mundo
Desenvolvidos
Russia
China
Mexico
EU - 27
Brazil
USA
World
Developed
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17
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Source: USDA 2012 (Estimated)
*Buffaloes / **Not considering Brazilian exports
Global Protein Trade
­
Largest Exporters
JBS is present in the main exporter markets
Canada 5%
New Zealand 6%
Mercosul** 9%
Others 13%
USA 14%
India* 20%
Brazil 17%
Australia 17%
Chicken Exports
Beef Exports
Pork Exports
Turkey 3 %
Thailand 5%
Argentina 3%
E.U. 12%
Others 7%
Brazil 36%
USA 34%
Chile 2%
Brazil 9%
China 4%
Canada 17%
Others 4%
USA 34%
E.U. 30%
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3Q12 Highlights
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19
PAGE
786.8
1,378.8
5.1
7.1
-12,0
8,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
2000,0
3Q11
3Q12
Positive Operating Cash Flow of R$630 million
R$157 million Free Cash Flow
Leverage decreased significantly and was 3.68x at the end of the quarter
3Q12 Highlights
Net Revenue (R$ billion)
Net Income (R$ million)
15.6
19.4
3Q11
3Q12
24%
75%
-67.5
495.4
-12
-100,0
0,0
100,0
200,0
300,0
400,0
500,0
600,0
3Q11
3Q12
EBITDA margin (%)
EBITDA (R$ million)
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9M12 Highlights
44.9
53.8
9M11
9M12
20%
2,210.4
3,239.4
4.9
6.0
-12,0
8,0
0,0
500,0
1000,0
1500,0
2000,0
2500,0
3000,0
3500,0
4000,0
4500,0
5000,0
9M11
9M12
47%
-101.3
948.6
-12
-200,0
0,0
200,0
400,0
600,0
800,0
1000,0
9M11
9M12
EBITDA margin (%)
Net Revenue (R$ billion)
Net Income (R$ million)
EBITDA (R$ million)
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JBS entered the Canadian beef market through the signature of an agreement to manage and operate assets of XL
Foods
in Canada, including a purchase option (2 plants, 1 feedlot and a farm) and XL Foods assets in the United
States (2 plants).
Strategic Events
The Company also signed a term sheet to acquire 100% of the shares of Agrovêneto S.A. a company specialized in
the production of chicken products which operates out of Nova Veneza in the southern Brazilian state of Santa
Catarina. The plant has capacity to process 140,000 birds per day.
JBS is scheduled to open 6 new beef plants in Brazil in the coming months as follows: Rolim de Moura, state of
Rondonia which is due to initiate operations on 19.Nov.2012, Nova Andradina (Mato Grosso do Sul) with start-up
scheduled for 03.Dec.2012, Pontes e Lacerda and Vila Rica, both in the state of Mato Grosso, scheduled to start on
07.Jan.2013, Senador Canedo (Goiás) scheduled for 04.Feb.2013 and Castelo dos Sonhos, in the Northern state of
Pará, scheduled for 08.Apr.2013. These plants will add a total capacity of 1.2 million head of cattle by 2013, which
represents a 15% increase over the current capacity in Brazil.
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Source: JBS
JBS Consolidated Results
­
3Q12
EBITDA
Net Revenue (R$ million)
EBITDA and EBITDA Margin (R$ million)
786.8
940.6
696.5
1,012.8
1,378.8
5.1
5.6
4.3
5.5
7.1
-12,0
8,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
3Q11
4Q11
1Q12
2Q12
3Q12
15,567.8
16,934.5
16,011.1
18,468.3
19,366.6
3Q11
4Q11
1Q12
2Q12
3Q12
+15.3%
+4.9%
+8.8%
-5.5%
+45.4%
+36.1%
+19.5%
-26.0%
EBITDA Margin (%)
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3.9
3.8
3.8
4.3
4.6
3Q11
4Q11
1Q12
2Q12
3Q12
Source: JBS
JBS Mercosul
Performance by Business Unit
Net revenue at JBS Mercosul came in at R$4,597.8 million in 3Q12,
increase of 17.7% in comparison with 3Q11.
EBITDA totaled R$665.6 million in 3Q12, an increase of 46.7% over
the same quarter last year.
EBITDA margin at JBS Mercosul was 14.5% in the quarter.
The result of this business unit reflects an improved cattle cycle in
Brazil, the Company's efforts to enhance operational efficiencies and to
capture synergies in addition to the Company's strategy.
24%
% Net Revenue JBS S.A.
Net Revenue (R$ billion)
EBITDA (R$ million)
YoY
17.7%
EBITDA Margin (%)
453.8
407.7
508.6
630.3
665.6
11.6% 10.7%
13.3%
14.6%
14.5%
-
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%
-
50
50
150
250
350
450
550
650
750
850
3Q11
4Q11
1Q12
2Q12
3Q12
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Source: JBS
JBS USA Beef (including Australia)
Performance by Business Unit
Net revenue for this business unit was US$4,275.9 million in the
quarter.


This quarter was the turning point when margins became
positive in 2012. EBITDA at JBS USA Beef unit totaled US$175.1
million in the period, with an EBITDA margin of 4.1%.

The improvement in the dynamics of the sector in the U.S., due
to the better balance between supply and demand, permitted an
improvement in margins at JBS USA.
Furthermore, the successful outcome of the operation in
Australia contributed to the results of this business unit.
45%
Net Revenue (US$ billion)
EBITDA (US$ million)
EBITDA Margin (%)
% Net Revenue JBS S.A.
4.2
4.5
4.1
4.3
4.3
3Q11
4Q11
1Q12
2Q12
3Q12
184.1
223.6
-45.4
-9.1
175.1
4.4%
5.0%
-1.1%
-0.2%
4.1%
-
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
3Q11
4Q11
1Q12
2Q12
3Q12
YoY
1.6%
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Source: JBS
JBS USA Pork
Performance by Business Unit
Net revenue in the pork business for the quarter was US$846.1
million, 2.4% lower than 3Q11.
EBITDA was US$40.4 million in 3Q12 with an EBITDA margin of
4.8%.
The quarterly result was influenced by the reduction of average
selling prices in general, compared to last year, due to oversupply
of finished products in the period.
9%
Net Revenue (US$ million)
EBITDA (US$ million)
EBITDA Margin (%)
% Net Revenue JBS S.A.
867.1
923.1
855.4
844.0
846.1
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
3Q11
4Q11
1Q12
2Q12
3Q12
75.9
77.0
55.8
49.2
40.4
8.8%
8.3%
6.5%
5.8%
4.8%
-
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
3Q11
4Q11
1Q12
2Q12
3Q12
YoY
-2.4%
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Source: JBS
JBS USA Poultry (Pilgrim's Pride Corporation)
Performance by Business Unit
Net revenue in the 3Q12 for this business unit came in at
US$2,068.5 million, 9.4% higher than the same period of 2011.

EBITDA in the 3Q12 was US$105.6 million, reversing the negative
US$31.4 million in 3Q11.


EBITDA in the 3Q12 was US$105.6 million, reversing the negative
US$31.4 million in 3Q11.

Reduction in the PPC's net debt to US$1.1 billion at the end of
September, as a consequence primarily of the US$75.6 operating cash
flow.
22%
Net Revenue (US$ billion)
EBITDA (US$ million)
EBITDA Margin (%)
% Net Revenue JBS S.A.
1.9
1.8
1.9
2.0
2.1
3Q11
4Q11
1Q12
2Q12
3Q12
-31.4
22.6
104.0
125.7
105.6
-1.7%
1.2%
5.5%
6.4%
5.1%
-
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
3Q11
4Q11
1Q12
2Q12
3Q12
YoY
9.4%
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Source: JBS
JBS Consolidated Exports Distribution in 3Q12
Approximately US$2.53 billion
,
an increase of 7,9% in relation to 2Q12
US$2,534.4
million
Mexico 13.7%
Japan 11.6%
Russia 6.8%
E.U 6.7%
Canada 4.3%
Chile 2.9%
Taiwan 1.6%
Others 18.6%
Africa and Middle East 14.5%
South Korea 4.6%
Venezuela 2.0%
China, HK and Vietnam 12.7%
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Debt Profile
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3Q12 Net debt to EBITDA was 3.68x, substantially lower than the 2Q12.
Source: JBS
Debt Profile
The Company ended the quarter with R$5,0 billion in cash, which represents more than 90% of short-term debt.
The percentage of short term debt increased from 23% in 2Q12 to 27% in 3Q12.
4.04
4.00
4.30
4.27
3.68
0
1
2
3
4
5
-100
100
300
500
700
900
1100
1300
1500
3Q11
4Q11
1Q12
2Q12
3Q12
.
Leverage
EBITDA (R$ million)
Leverage
.
27%
23%
27%
28%
73%
77%
73%
72%
3Q12
2Q12
1Q12
4Q11
Short Term
Long Term
ST / LT Debt Profile
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Bonds
39%
Other
61%
3Q12
Debt Maturity Schedule and Profile
JBS S.A.
59%
Subsidiaries
41%
3Q12
Bonds / Other
Source: JBS Financial Statements 3Q12
Net Debt: 15,243.9 (R$ million)
-472
-202
-4,393
-1,454
-2,081
-172
-3,743
-2,727
Short Term Net
of Cash
2013
2014
2015
2016
2017
2018
2019 and after
Breakdown by Currency and Company
R$ 27%
USD 73%
3Q12
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Sustainability and
Social Responsability
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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.
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Classroom
Social
Germinare School is a social initiative of the JBS Institute which
looks at Education as the principal instrument to transform society.
Laboratory
Social

GERMINARE SCHOOL

Purpose:
to prepare well-educated and well-rounded citizens with a
broad cultural repertoire, sound ethical values and a positive
attitude toward life and society.
Number of students: 360 (2012)
Capacity of 630 students.
Area: 6,000 m
2
Sport complex, swimming pool, computer lab and chemistry lab.
Amount invested: R$15 million
Selection process: tests and group dynamics.
Top Brazilian professors.
JBS Institute funds Germinare School
Social Responsibility
Source: JBS
Started in 2010.
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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.