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Fact Sheet 2Q07
JBS started its operations in 1953, in the city of Anápolis, state of Goiás, and
is currently the world's largest beef producer and exporter, with a
slaughtering capacity of 24.1 thousand heads of cattle/day.
In the Brazilian market, the Company is the leader in beef sales (R$1.5
billion in 2006), producing fresh and processed beef, ready-to-eat meals,
canned vegetables and beef by-products.
JBS operations include 23 plants located in 9 Brazilian states and 5 plants
located in 3 Argentine provinces. These plants are strategically located in
regions with the largest concentration of cattle in Brazil and Argentina (both
among the world's leading beef producing and exporting countries), which
provides operating flexibility, low transportation costs (including to bring the
Net Revenue 1H07
(R$ million)
Domestic Market
Exports
Net Revenue
Domestic Market 1H07
(R$ million)
Processed Beef
Fresh Beef
Net Revenue
Exports 1H07
(R$ million)
Leadership
consolidation
in Brazil and
Argentina
Growth
opportunities
and acquisitions
Pursuit of
strategic
partnerships
Enhanced
operating
efficiencies
Growth in domestic
and international
markets
Higher margin
products in sales
mix
Balanced product
mix in domestic
and export
markets
Increased
productivity and
sustainable
growth
cattle to its plants and to transport the products to its clients), and mitigates
against the potential impact of regional sanitary issues.
The Company also has facilities for distribution and logistics support, which
contribute towards maintaining an efficient cost structure, consisting of: (i) 4
distribution centers, 3 in the state of São Paulo and 1 in the state of Minas
Gerais; (ii) one container terminal located near the port of Santos, in the
state of São Paulo; and (iii) subsidiaries in Chile, Egypt, England, Russia and
United States, which distribute and market JBS' products in those countries.
JBS' products are sold to over 6,000 clients in Brazil, including retailers, restaurants
and tanneries, and exported to more than 500 clients located in 110 countries.
Corporate Profile
Highlights of 2Q07
Growth Strategy
Others
Total Net Revenue:
R$ 2,257.4
Total Net Revenue: R$ 948.1
Total Net Revenue: R$ 1,309.2
Operating Area
Processed Beef
Fresh Beef
Growth in consolidated net revenue of 25.2%, compared to the
2Q06 and of 7.8% in comparison to 1Q07;
Growth in net export revenues of 20.5% compared to the 2Q06 and
9.2% in comparison to the 1Q07. In the domestic market, net
revenues grew by 32.3% compared to the 2Q06 and by 6.0% in
comparison to the 1Q07;
·EBITDA growth of 18.3% in comparison to the 2Q06, amounting
R$165.2 million. For the quarter, the Company posted an EBITDA
margin of 14.1%, compared to 14.9% in the same period of last
year and 14.4% in the 1Q07;
Growth in the amount of cattle slaughtered of 14.1% compared to
the 2Q06 and 6.8% in comparison to the 1Q07;
Net income growth of 20.8%, totaling R$38.7 million in the 2Q07,
compared to R$32.1 million in the 2Q06;
Start-up of the industrial unit for the production of beef jerky in the
city of Santo Antonio da Posse, state of São Paulo;
Beginning of operations in the units of Teófilo Otoni, state of Minas
Gerais, Brazil, Pontevedra and Berazategui, Argentina;
Acquisition of a cattle confinement unit in the state of São Paulo with
an annual capacity for 150,000 animals.
Head of cattle (in thousands)
2,500 ­ 7,500
7,500 ­ 12,500
12,500 ­ 17,500
17,500 ­ 22,500
Over 22,500
Slaughterhouse
Slaughterhouse/Processing plant
Distribution center
Canned vegetables plant
Canned beef plant
Container field
JBS' operational footprint
Argentina
SP
PR
MS
RO
AC
MT
GO
MG
RJ
Brazil
70%
30%
68%
18%
14%
58%
42%
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Investor Relations
Director
José Paulo Macedo
André Menezes
Investor Relations Manager
ir@jbs.com.br
phone: (11) 3144-4055
fax: (11) 3144-4279
www.jbs.com.br/ir
Av. Marginal Direita do Tietê, 500
Vila Jaguara
05118-100 - São Paulo - SP
phone: +55 (11) 3144 4000
Contact IR
Leading industry positions and brand recognition
Largest beef producer and exporter in Latin America and second
largest exporter in the world;
Leading beef sales position in the domestic market;
Brands widely recognized as symbols of quality: Friboi, Maturatta, Friboi
Organic Beef, Cabaña las Lillas, Swift, Anglo, Mouran and Plata.
Low production costs
Attractive cost of cattle;
Economies of scale;
Efficient logistics;
Efficient and continuously updated facilities.
Modern strategically-located operations
Reduction of risks regarding fresh beef export restrictions due to
regional sanitary issues;
State-of-the-art technology in beef processing.
Diversified products mix
Diversified mix of fresh and processed beef products;
Optimized utilization of cattle carcass, improving the Company's
profitability.
Global distribution and customer diversification
Growth potential and risk reduction of sales concentration.
Successful history of acquisitions
Successful track record of acquiring and integrating companies,
resulting in production and operating synergies.
Experienced and specialized management
Competitive Advantages
Net Sales Revenue (R$ million)
Net Income (R$ million)
EBITDA and EBITDA Margin (R$ million) and (%)
Var.%
1H07/1H06
1H06
1H07
Var.%
2Q07/1Q07
1Q07
25.2%
32.3%
20.5%
16.1%
20.8%
18.3%
14.1%
29.7%
23.9%
27.6%
Var.%
2Q07/2Q06
935.8
368.8
567.0
241.9
25.8%
32.1
3.4%
139.6
14.9%
829.9
161.9
90.5
252.4
2Q06
1,171.2
487.9
683.3
280.9
24.0%
38.7
3.3%
165.2
14.1%
947.0
210.0
112.2
322.2
2Q07
23.9%
25.8%
22.5%
20.6%
-23.2%
23.5%
11.3%
21.0%
29.4%
23.8%
1,086.1
460.2
626.0
257.6
23.7%
10.6
1.0%
156.2
14.4%
886.4
189.2
103.6
292.7
1,821.9
753.4
1,068.5
446.4
24.5%
64.3
3.5%
260.2
14.3%
1,647.4
329.8
166.7
496.5
2,257.4
948.1
1,309.2
538.5
23.9%
49.4
2.2%
321.4
14.2%
1,833.4
399.2
215.7
614.9
7.8%
6.0%
9.2%
9.0%
263.9%
5.8%
6.8%
11.0%
8.3%
10.1%
Net Sales Revenue
Domestic Market
Exports
Gross Fit
Gross Margin
Net Income
Net Margin
EBITDA
EBITDA Margin
Slaughtered Cattle
Sales Volumes
Domestic Market
Exports
Total Volume
Financial Highlights
R$ million
935.8
CAGR = 25.2%
CAGR = 23.9%
2Q06
1,171.2
2Q07
1,086.1
1Q07
2,257.4
1H07
1,821.9
1H06
138.5
CAGR = 19.3%
CAGR = 23.5%
2Q06
14.8%
14.1%
14.4%
14.3%
14.2%
165.2
2Q07
156.2
1Q07
321.4
1H07
260.2
1H06
32.1
CAGR = 20.6%
CAGR = 23.2%
38.7
10.6
49.4
64.3
2Q06
2Q07
1Q07
1H07
1H06