background image
Fact Sheet 1Q07
JBS started its operations in 1953, in the city of Anápolis, state of Goiás, and
is currently the third largest producer and second largest beef exporter in
the world and #1 in Latin America in terms of slaughtering capacity (22.6
thousand heads of cattle/day).
In the Brazilian market, the Company is the leader in beef sales (R$1.5
billion in 2006), producing fresh and processed beef, ready-to-eat meals,
canned vegetables and beef by-products.
JBS operations include 22 plants located in 9 Brazilian states and 5 plants
located in 3 Argentine provinces. These plants are strategically located in
regions with the largest concentration of cattle in Brazil and Argentina (both
among the world's leading beef producing and exporting countries), which
58%
42%
Net Revenue 1Q07
(R$ million)
Domestic Market
Exports
67%
18%
Net Revenue - Domestic Market 1Q07
(R$ million)
Processed Beef
Fresh Beef
70%
30%
Net Revenue - Exports 1Q07
(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
provides operating flexibility, low transportation costs (including to bring the
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 and Russia,
which distribute and market JBS' products in those countries.
JBS' products are sold to over 6,000 clients in Brazil, including retailers, restaurants
andtanneries,andexportedtomorethan500clientslocatedin110countries.
Corporate Profile
Highlights of 1Q07
Growth Strategy
Others
Total Net Revenue: R$ 1,086.1
15%
Total Net Revenue: R$ 460.2
Total Net Revenue: R$ 626.0
Operating Area
Processed Beef
Fresh Beef
Net Revenue of R$1.1 billion, a 22.6% increase compared to the
1Q06
EBITDA growth of 28.4% compared to the 1Q06
EBITDA margin of 14.4% compared to 13.7% in the 1Q06
Leadership consolidation in the domestic market, with net revenues
of R$460.2 million in the 1Q07
Net revenue from exports of R$ 626.0 million, a 24.8% growth
compared to the 1Q06
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
background image
Director of Finance and
Investor Relations
Sergio Longo
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
Sales Volume (in thousands of tons)
Net Sales Revenues
Cost of Goods Sold
Gross Profit
Operating Reveneues (Expenses)
Operating Income (Loss)
Net Income
EBITDA
Net Debt
Capex
Financial Highlights
(R$ million)
292.7
1,086.1
(828.5)
257.6
(228.0)
29.6
10.6
156.2
1,473.5
213.3
1Q07
-
-
76.3%
23.7%
21.0%
2.7%
1.0%
14.4%
-
-
% Net
Revenue
244.1
886.1
(681.7)
204.4
(142.9)
61.5
32.3
121.7
-
15.2
1Q06
-
-
76.9%
23.1%
16.1%
6.9%
3.6%
13.7%
-
-
% Net
Revenue
1.047.0
3,967.6
(3,036.70)
930.9
(657.0)
273.9
180.3
564.9
2,432.5
389.0
2006
-
-
76.5%
23.5%
16.6%
6.9%
4.5%
14.2%
-
-
% Net
Revenue
19.9%
22.6%
21.5%
26.0%
59.5%
-51.8%
-67.0%
28.4%
39.4%
1303.3%
Chg (%)
1Q
07x1Q06
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 Income
(R$ million)
1Q06
R$ 121.7
1Q07
13.7%
14.4%
CA
GR=28.4%
R$ 156.2
1Q06
R$886.1
1Q07
R$ 1,086.1
6
CAGR=22.
%
Net Income
(R$ million)
1Q06
R$ 32.3
1Q07
R$ 10.6
R
0
CAG
=67.
%
EBITDA and EBITDA Margin
(R$ million) and (%)