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JBS S.A.
Results Presentation
1Q11
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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 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$ 15.1 billion
(1)
(1) 31/03/2011
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4
PAGE
JBS Ranking
3
Geographic and
market segment
diversification
1
Market Leader
4
Well-recognized
brands
2
Track Record
of successful
acquisitions
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
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5
PAGE
Merger and Acquisition track record
More than 30 acquisitions in 15 years
0,3
0,4
0,4
0,5
0,5
0,4
0,7
1,2
1,5
4,3
14,1
30,3
34,3
55,1
1996
1997
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Barra do
Garças
(Sadia)
Andradina
(Sadia)
Barretos (Anglo)
Pres. Epitácio e
Campo grande
(Bordon)
Araputanga
(Frigoara)
Cáceres
(Frigosol)
Iturama
(Frigosol)
Rio Branco
Cacoal 1
Cacoal 2
Porto Velho
Vilhena
(Frigovira)
Pedra Preta
(Frigo Marca)
Venado
Tuerto
Pontevedra
(CEPA)
JV Beef Jerky
Beef
Five Rivers
Merger with Bertin
JBS Couros
5 new units
Tatiara Meat
(Swift Austrália)
Net revenue (R$ billion)
Tasman
Smithfield
Inalca
SB Holdings
Berazategui (Rio Platense)
Colonia Caroya
Maringá (Amambay)
Swift Foods Co.
JBS went international with the acquisition of Swift Argentina.
Construction of a sustainable global meat
production and sales platform.
2005
JBS became the largest beef company in the world and the
biggest Brazilian company in the food industry and entered the
US pork market.
2007
2008
Diversification of market segments through the
acquisition of Pilgrim's Pride and merger with Bertin.
2009
JBS Swift became the leader in lamb production in
Australia.
2010
Rosário
San Jose
(Swift Argentina)
Pilgrim´s Pride
3
Geographic and
market segment
diversification
1
Market Leader
4
Well-recognized
brands
2
Track Record
of successful
acquisitions
Rockdale Beef
Source: JBS
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6
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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
84,800 heads/day
Beef
7.9 mm birds/day
Chicken
50,000 heads/day
Pork
5,400 tons/day
Dairy
24,000 heads/day
Lamb
82,300 hides/day
Leather
3
60
39
23
7
1
58
7
144
u
Units
3
Geographic
and market
segment
diversification
1
Market Leader
4
Well-recognized
brands
2
Track Record of
successful
acquisitions
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Well-recognized Brands, symbols of quality
Brazil
Argentina
3
Geographic and
market segment
diversification
1
Market Leader
4
Well-recognized
brands
2
Track Record of
successful
acquisitions
EUA
Australia
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Perspectives for the animal protein market
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9
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0
50
100
150
200
250
300
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2019
Global Protein Consumption Growth
Source: Historical figures per USDA FAS. Projected and forecasted data per OECD estimates.
(MT in mm)
Historical
Forecast
Strong Global Industry Fundamentals
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10
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Source: USDA FAS.
Global Protein Trade Continues to Grow
13,989
14,282
15,074
16,359
17,219
17,954
19,750
19,839
20,688
22,707
21,714
22,959
23,513
7,218
7,824
8,777
9,543
10,330
11,022
12,661
12,828
13,874
15,112
14,558
14,587
14,993
0
5,000
10,000
15,000
20,000
25,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010P
2011F
(MT in `000s)
JBS
Market
Presence
64%
JBS Has Presence in Markets That Represent Nearly 64% of Global Trade
Historical
Forecast
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Brazil, Australia and the US continue to lead global beef exports
Source: USDA, MLA and Secex
Beef Exports
Average Price (US$/Ton)
Australian Beef Exports (tons)
Brazil, Australia and US represent, respectively, 27%, 18% and 11% of global beef trade
Brazilian Beef Exports (tons)
US Beef and Veal Exports (tons)
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
+11.1%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
-18.3%
+15.1%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
5.500
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
2005 2006 2007 2008 2009 2010 1Q10 1Q11
-10.5%
+35.5%
+12.2%
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Chicken Exports Brazil vs US
Source: USDA e Secex
Brazilian Chicken Exports (tons)
US Chicken Exports (tons)
Chicken Exports
Average Price (US$/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
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
1Q10
1Q11
+18.2%
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 Jan-Feb
10
Jan-Feb
11
+10.2%
+6.1%
+1.7%
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Pork Exports US vs Brazil
Source: USDA e Secex
Brazilian Pork Exports (tons)
US Pork Exports (tons)
Chicken 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
1Q10
1Q11
+12.7%
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 Jan-Feb
10
Jan-Feb
11
-7.1%
+13.4%
+8.0%
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1Q11 Highlights
Net income was R$147.0 million in the period
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Net revenue in 1Q11 was R$14,672.7 million, 20.2% higher than 1Q10.
Net income in 1Q11 was R$147.0 million, an increase of 47.9% compared to the 1Q10.
1Q11 Highlights
The main operating highlighs were:
JBS USA Beef presented EBITDA of
US$269.7 million, 58.2% superior than 1Q10
and EBITDA margin of 7.4%.
JBS Mercosul presented EBITDA of
US$308.3 million and EBITDA margin of
8.6%.
JBS USA Pork presented EBITDA of
US$105.3 million, 201.7% superior
than 1Q10 and EBITDA margin of
12.6%.
Exports increased more than 17% in
1Q11 compared to 1Q10, reaching
US$2.45 billion for the period.
EBITDA was R$ 835.9 million with an EBITDA margin of 5.7%.
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Source: JBS
JBS Consolidated Results
­
1Q11
862
1.000
1.026
866
836
7,1
7,1
7,3
6,0
5,7
-12,0
8,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
1600,0
1800,0
1Q10
2Q10
3Q10
4Q10
1Q11
EBITDA
Net Revenue (R$ million)
EBITDA and EBITDA Margin (R$ million)
12.207,3
14.116,3
14.069,6
14.319,6
14.672,7
1Q10
2Q10
3Q10
4Q10
1Q11
+2.5%
+15.6%
-0.3%
+1.8%
+ 116.7%
+ 16.0%
+2.6%
-3.4%
EBITDA Margin (%)
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JBS Mercosul
Source: JBS
Net sales (R$ billion)
EBITDA (R$ mi) EBITDA margin
362,7
334,5
363,7
238,8
308,6
12,8%
9,5%
10,4%
7,1%
8,6%
-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
1Q10
2Q10
3Q10
4Q10
1Q11
2,8
3,5
3,5
3,4
3,6
1Q10
2Q10
3Q10
4Q10
1Q11
EBITDA Margin (%)
25% of JBS S.A. Net Revenues.
R$ million
1Q11
4Q10
%
1Q10
%
Heads slaughtered (thousand)
1,747.1
1,585.0
10.2%
1,722.4
1.4%
Net Revenue
3,604.2
3,362.8
7.2%
2,822.7
27.7%
EBITDA
308.3
238.8
29.1%
362.7
-15.0%
EBITDA margin %
8.6%
7.1%
12.8%
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JBS USA Beef (including Australia)
2,8
3,3
3,4
3,6
3,8
1Q10
2Q10
3Q10
4Q10
1Q11
Net sales (R$ billion)
EBITDA (R$ mi) EBITDA margin
170,5
194,9
103,5
194,8
269,7
6,0%
5,9%
3,1%
5,4%
7,1%
-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
1Q10
2Q10
3Q10
4Q10
1Q11
Source: JBS
EBITDA Margin (%)
43% of JBS S.A. Net Revenues.
US$ million
1Q11
4Q10
%
1Q10
%
Heads slaughtered (thousand)
2,003.1
2,047.3
-2.2%
1,880.0
6.5%
Net Revenue
3,793.3
3,588.7
5.7%
2,827.7
34.1%
EBITDA
269.7
194.8
38.5%
170.5
58.2%
EBITDA margin %
7.1%
5.4%
6.0%
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JBS USA Pork
Net sales (R$ billion)
EBITDA (R$ mi) EBITDA margin
34,9
48,7
90,8
102,4
105,3
5,4%
6,6%
11,8%
12,8%
12,6%
-10,0%
-5,0%
0,0%
5,0%
10,0%
0
100
1Q10
2Q10
3Q10
4Q10
1Q11
646
739
772
799
837
0
100
200
300
400
500
600
700
800
900
1000
1100
1Q10
2Q10
3Q10
4Q10
1Q11
Source: JBS
EBITDA Margin (%)
10% of JBS S.A. Net Revenues.
US$ million
1Q11
4Q10
%
1Q10
%
Animals slaughtered (thousand)
3,303.6
3,587.2
-7.9%
3,115.6
6.0%
Net Revenue
836.6
799.4
4.7%
645.9
29.5%
EBITDA
105.3
102.4
2.8%
34.9
201.7%
EBITDA margin %
12.6%
12.8%
5.4%
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JBS USA Chicken
1,6
1,7
1,7
1,8
1,9
1Q10
2Q10
3Q10
4Q10
1Q11
Net sales (R$ billion)
EBITDA (R$ mi) EBITDA margin
59,5
127,6
170
124,8
-55,2
3,6%
7,5%
9,9%
6,9%
-2,9%
-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
1Q10
2Q10
3Q10
4Q10
1Q11
Source: JBS
EBITDA Margin (%)
22% of JBS S.A. Net Revenues.
US$ million
1Q11
4Q10
%
1Q10
%
Net Revenue
1,892.5
1,811.3
4.5%
1,642.9
15.2%
EBITDA
(55.2)
124.8
-
59.5
-
EBITDA margin %
-2.9%
6.9%
3.6%
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Source: JBS
Revenue and EBITDA Distribution by Business Unit
Revenue
EBITDA
36.8%
53.9%
21.0%
-11.6%
43.1%
25.2%
21.9%
9.7%
1Q11
1Q11
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Source: USDA
2.500
2.700
2.900
3.100
3.300
3.500
3.700
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
1.600
1.650
1.700
1.750
1.800
1.850
1.900
1Q10
2Q10
3Q10
4Q10
1Q11
500
550
600
650
700
750
800
850
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2.800
2.900
3.000
3.100
3.200
3.300
3.400
3.500
3.600
1Q10
2Q10
3Q10
4Q10
1Q11
Organic Growth 2009 / 2010
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)
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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$ 2,450.3 million
1Q11
Vietnam 1.5%
Taiwan 2.3%
China 3.5%
Canada 4.0%
South Korea 4.7%
Hong Kong 6.8%
Others 13.4%
E.U. 9.2%
Mexico 15,0%
Africa and Middle East 14.9%
Russia 12.5%
Japan 12.2%
US$ 2,087.9 million
4Q10
JBS Consolidated Exports Distribution
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The ratio of net debt to EBITDA was 3.1x in the 1Q11, compared with 3.0x in 4Q10.
The slight increase in debt refers to the working capital needs of the Company.
.
Leverage
EBITDA
Leverage
Source: JBS
Debt Profile
Short Term
Long Term
ST / LT Profile
3,1
3
2,9
3
3.1x
0
1
2
3
-100
100
300
500
700
900
1100
1300
1500
1Q10
2Q10
3Q10
4Q10
1Q11
40%
36%
33%
33%
30%
60%
64%
67%
67%
70%
1Q10
2Q10
3Q10
4Q10
1Q11
It is important to note that the Company's Cash and Equivalents is equal to 80% of the short term debt, and more than 70% of the debt is
long term.
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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.