background image
JBS S.A.
Results Presentation
2Q11
background image
JBS S.A.
background image
3
PAGE
JBS S.A. at a glance
Founded in the 1950's in West Central Brazil
IPO in 2007
Leading protein producer and third largest food company in the World
Revenues of over R$ 54 billion in 2010
EBITDA of R$ 3.76 billion in 2010
Organic growth of 14.2% in local currency in 2010
125,000 employees worldwide
134 production units in 5 continents
Market cap of approximately R$ 13.8 billion
(1)
(1) 31/07/2011
background image
4
PAGE
JBS Ranking
2
Geographic and
market segment
diversification
1
Market Leader
3
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
5
PAGE
Presence in more than 100 countries, in 6 continents
Source: JBS
Slaughterhouse and Industry
Sales Office
Pork
Leather
Beef
Distribution Center
Dairy
Biodiesel
Strategic Geographical Distribution
Chicken
Geographic
Presence and
Production
Capacity
85,825 heads/day
Beef
7.9 mm birds/day
Chicken
50,000 heads/day
Pork
5,400 tons/day
Dairy
24,000 heads/day
Lamb
76,100 hides/day
Leather
3
60
37
20
7
1
58
7
134
u
Units
2
Geographic and
market segment
diversification
1
Market Leader
3
Well-recognized
brands
background image
6
PAGE
Well-recognized Brands, symbols of quality
EUA
Australia
Brazil
Argentina
2
Geographic and
market segment
diversification
1
Market Leader
3
Well-recognized
brands
background image
7
PAGE
Brazil, Australia and the US continue to lead global beef exports
Source: USDA, MLA and Secex
Beef Exports
Average Price (US$/Ton)
Australian Beef Exports (tons)
Brazil, Australia and US represent, respectively, 27%, 18% and 11% of global beef trade
Brazilian Beef Exports (tons)
US Beef and Veal Exports (tons)
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005 2006 2007 2008 2009 2010 1H10 1H11
+4.3%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005 2006 2007 2008 2009 2010 1H10 1H11
+25.8%
+13.0%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005 2006 2007 2008 2009 2010 1H10 1H11
-16.4%
+31.6%
+3.5%
background image
8
PAGE
Chicken Exports Brazil vs US
Source: USDA and Secex
Brazilian Chicken Exports (tons)
US Chicken Exports (tons)
Chicken Exports
Average Price (US$/Ton)
Brazil and US represent, respectively, 39% and 34% of global chicken trade
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
2005
2006
2007
2008
2009
2010
1H10
1H11
+21.4%
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
2005
2006
2007
2008
2009
2010
1H10
1H11
+6.4%
-1.7%
+10.2%
background image
9
PAGE
Pork Exports US vs Brazil
Source: USDA and Secex
Brazilian Pork Exports (tons)
US Pork Exports (tons)
Pork Exports
Average Price (US$/Ton)
US and Brazil represent, respectively, 32% and 11% of global pork trade
0
500
1.000
1.500
2.000
2.500
3.000
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005
2006
2007
2008
2009
2010
1H10
1H11
+12.0%
0
500
1.000
1.500
2.000
2.500
3.000
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005
2006
2007
2008
2009
2010
1H10
1S11
-1.8%
+14.5%
+7.2%
background image
2Q11 Highlights
background image
11
PAGE
Net revenue in 2Q11 was R$14,621.8 million, 3.6% higher than 2Q10.
The Company ended the quarter with R$5.0 billion in cash more than a 100% of the short-term debt.
2Q11 Highlights
The main operating highlights were:
JBS concluded the capitalization of the debentures in shares of JBS S.A. at R$7.04.
The Company raised US$2.0 billion in long-term debt.
All the business units of JBS presented significant organic growth y-o-y.
JBS Mercosul presented EBITDA of
R$427.9 million, with a EBITDA margin of
11.8%
JBS USA Pork presented EBITDA of
US$83.6 million, 71.7% greater than
2Q10, with EBITDA margin of 9.9%.
background image
12
PAGE
Source: JBS
JBS Consolidated Results
­
2Q11
1.000
1.026
866
836
588
7,1
7,3
6,0
5,7
4,0
-12,0
8,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
2Q10
3Q10
4Q10
1Q11
2Q11
EBITDA
Net Revenue (R$ million)
EBITDA and EBITDA Margin (R$ million)
14.116,3
14.069,6
14.319,6
14.672,7
14.621,8
2Q10
3Q10
4Q10
1Q11
2Q11
+2.5%
-0.3%
-0.3%
+1.8%
-29.7%
+2.6%
-15.6%
-3.5%
EBITDA Margin (%)
background image
13
PAGE
Source: JBS
Semester Analysis
Net sales (R$ billion)
3,4
3,9
1H10
1H11
6,2
7,8
1H10
1H11
Net sales (US$ billion)
Net sales (US$ million)
Net sales (US$ billion)
EBITDA (R$ mi)
EBITDA (US$ mi)
EBITDA (US$ mi)
EBITDA (US$ mi)
JBS Mercosul
JBS USA
(Including Australia)
JBS USA
JBS USA (PPC)
83,6
188,9
-
0,2
-
0,15
-
0,1
-
0,05
0
0,05
0,1
0,15
0
100
200
300
1H10
1H11
187,1
-102,8
-
0,6
-
0,58
-
0,56
-
0,54
-
0,52
-
0,5
-
0,48
-
0,46
-
0,44
-
0,42
-
0,4
-
0,38
-
0,36
-
0,34
-
0,32
-
0,3
-
0,28
-
0,26
-
0,24
-
0,22
-
0,2
-
0,18
-
0,16
-
0,14
-
0,12
-
0,1
-
0,08
-
0,06
-
0,04
-
0,02
0
0,02
0,04
0,06
0,08
0,1
0,12
0,14
0,16
0,18
0,2
-
200
-
100
0
100
200
300
400
500
600
700
800
900
1000
1H10
1H11
697,2
736,2
-
0,15
-
0,13
-
0,11
-
0,09
-
0,07
-
0,05
-
0,03
-
0,01
0,01
0,03
0,05
0,07
0,09
0,11
0,13
0
100
200
300
400
500
600
700
800
900
1000
1100
1H10
1H11
6,3
7,2
1H10
1H11
365,4
314,4
-
0,3
-
0,28
-
0,26
-
0,24
-
0,22
-
0,2
-
0,18
-
0,16
-
0,14
-
0,12
-
0,1
-
0,08
-
0,06
-
0,04
-
0,02
0
0,02
0,04
0,06
0,08
0,1
0,12
0,14
0,16
0
100
200
300
400
500
600
700
800
900
1000
1100
1H10
1H11
1,4
1,7
0
1H10
1H11
Performance by Business Unit
background image
14
PAGE
Source: JBS
Net sales (R$ billion)
Net sales (US$ billion)
Net sales (US$ million)
Net sales (US$ billion)
EBITDA (R$ mi) EBITDA margin
EBITDA (US$ mi) EBITDA margin
EBITDA (US$ mi) EBITDA margin
EBITDA (US$ mi) EBITDA margin
EBITDA Margin (%)
JBS Mercosul
JBS USA
(Including Australia)
JBS USA
JBS USA (PPC)
3,3
3,4
3,6
3,8
4,0
2Q10
3Q10
4Q10
1Q11
2Q11
3,5
3,5
3,4
3,6
3,6
2Q10
3Q10
4Q10
1Q11
2Q11
48,7
90,8
102,4 105,3
83,6
6,6%
11,8% 12,8% 12,6%
9,9%
-
10,0%
-
5,0%
0,0%
5,0%
10,0%
0
100
2Q10
3Q10
4Q10
1Q11
2Q11
127,6
170
124,8
-55,2 -47,6
7,5% 9,9%
6,9%
-2,9%
-2,4%
-
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%
18,0%
20,0%
-
100
0
100
200
300
400
500
2Q10
3Q10
4Q10
1Q11
2Q11
334,5 363,7
238,8
308,6
427,9
9,5%
10,4%
7,1%
8,6%
11,8%
-
10,0%
-
8,0%
-
6,0%
-
4,0%
-
2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
100
200
300
400
500
600
2Q10
3Q10
4Q10
1Q11
2Q11
194,9
103,5
194,8
269,7
44,7
5,9%
3,1%
5,4% 7,1%
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%
0
100
200
300
400
500
2Q10
3Q10
4Q10
1Q11
2Q11
1,7
1,7
1,8
1,9
2,0
2Q10
3Q10
4Q10
1Q11
2Q11
739
772
799
837
846
100
180
260
340
420
500
580
660
740
820
900
980
1060
1140
1220
1300
2Q10
3Q10
4Q10
1Q11
2Q11
Quarterly Analysis
Performance by Business Unit
background image
15
PAGE
Source: JBS
Revenue and EBITDA Distribution by Business Unit
Revenue
EBITDA
43.5%
25.4%
21.5%
9.6%
2Q11
73.4%
12.7%
26.5%
-12.6%
2Q11
background image
16
PAGE
Source: USDA
Organic Growth
Each business unit presented double digit organic growth in their local currency, for the period.
JBS USA Beef ­ Net Revenue (US$ million)
JBS USA Chicken ­ Net Revenue (US$ million)
JBS USA Pork ­ Net Revenue (US$ million)
JBS Mercosul ­ Net Revenue (R$ million)
2.600
2.800
3.000
3.200
3.400
3.600
3.800
4.000
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
1.600
1.700
1.800
1.900
2.000
2.100
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
2.800
2.900
3.000
3.100
3.200
3.300
3.400
3.500
3.600
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
500
550
600
650
700
750
800
850
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
background image
17
PAGE
Source: JBS
Philippines 1.3%
Taiwan 2.5%
China 4.0%
Canada 4.4%
E.U. 5.2%
Hong Kong 6.8%
Others 14.0%
Russia 8.4%
Africa and Middle East 15.9%
Mexico 14.4%
Japan 13.1%
South Korea 10.1%
US$ 2,363.6 million
2Q11
US$ 2,450.3 million
1Q11
JBS Consolidated Exports Distribution
Vietnam1.2%
Taiwan 2.7%
China 4.1%
Canada 4.8%
South Korea 7.7%
Hong Kong 6.8%
Others 16.0%
E.U. 6.9%
Mexico 13.0%
Africa and Middle East 13.6%
Russia 9.5%
Japan 13.7%
background image
18
PAGE
.
Leverage
EBITDA
Leverage
Source: JBS
* subsidiary controlled by JBS with non-recourse debt.
Debt Profile
Short Term
Long Term
ST / LT Profile
3
2,9
3
3,1
3.6x
0
1
2
3
-100
100
300
500
700
900
1100
1300
1500
2Q10
3Q10
4Q10
1Q11
2Q11
36%
33%
33%
30%
27%
64%
67%
67%
70%
73%
2Q10
3Q10
4Q10
1Q11
2Q11
Net debt to EBITDA, excluding Pilgrim's Pride Corp. (PPC)*, went from 2.9x in 1Q11 to 3.2x in 2Q11
Net debt to EBITDA, including Pilgrim's Pride Corp. (PPC)*, went from 3.1x in 1Q11 to 3.6x in 2Q11
The Company ended the quarter with R$5.0 billion in cash or cash equivalents, more than a 100% of the Company's short-term debt
background image
Stock Market
In 2007, JBS was the first Company in the beef industry to trade its
shares on the stock market
background image
20
PAGE
Average daily
traded volume
of
R$ 22.7
million in
2Q11
Shareholders
Source: JBS
3.0%
background image
21
PAGE
Sell-side analyst recommendation
Source: Bloomberg and JBS
Institution
Analyst
Recommendation
Target Price (R$)
Mariana Peringer
Ricardo Boiati / Alan Cardoso
Fábio Monteiro / Thiago Duarte
Gustavo Wigman / Claudio Lensing
Pedro Herrera / Diego Maia
Fernando Ferreira / Isabella Simonato
Erick Guedes / Fernando Labes
Gustavo Oliveira / Flavio Barcala
Hold
Market Perform
Buy
Neutral
Neutral
Neutral
Outperform
Neutral
10.20
8.80
9.30
7.30
6.40
6.50
10.35
7.40
Luis Miranda
Hold
7.00
Banco do Brasil
Bradesco
BTG Pactual
Goldman Sachs
HSBC
Merrill Lynch BofA
Safra
UBS
Santander
$
Carlos Albano
Hold
7.40
Citi
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.