00
March, 2010
“In God We Trust, Nature We Respect”
JBS S.A.
Our Values
Excellence
Planning
Determination
Discipline
Availability
Openness
Simplicity
1
Agenda
Company Overview
Market Overview
4Q09 Highlights
Short Term Outlook
2
Company Overview
3
JBS S.A. at a Glance
• Founded 1953 in central Brazil
• IPO in 2007
• Ibovespa ticker: JBSS3
• ADR ticker: JBSAY
• Leading animal protein producer in the World
• Production platform in South America, North America, Europe and
Oceania
• 125,000 employees worldwide
• Revenues of about US$ 30 Billion per annum
• Market cap of R$ 22 billion
*Source: Bloomberg 25/02/2010
*
4
JBS S.A. Growth Through Acquisitions
• JBS’ History has been built through
more than 30 acquisitions in 15 years
with adequate capital structure and
management
Cáceres
(Frigosol)
Iturama
(Frigosol)
Araputanga
(Frigoara)
Barretos (Anglo)
Pres. Epitácio (Bordon)
Campo Grande (Bordon)
Pedra Preta
(Frigo Marca)
Rosário
(Swift ARG)
San Jose
(Swift ARG)
Inalca
Swift Foods Co.
Maringá (Amambay)
Berazategui
(Rio Platense)
Colonia Caroya
SB Holdings
JV Beef Jerky
Venado
Tuerto
Pontevedra
(CEPA)
Rio Branco
Cacoal 1
Cacoal 2
Porto Velho
Vilhena (Frigovira)
Andradina
(Sadia)
Barra do
Garças
(Sadia)
Tasman
Smithfield
Beef
Five Rivers
R$/US$ end of the year quotation
Bertin Association
Pilgrim’s Pride
JBS Hides
5 new units
(1) (2) (3)
Net Sales (in US$ billion)
Companies and assets acquired
Source: JBS(1) Pro Forma JBS S.A. LTM Dec07(2) Pro Forma JBS S.A. LTM Dec08(3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrim’s Pride Sep09 (Estimated); Bertin LTM Jun09
0.3 0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 1.9
12.7
19.8
30.3
1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Goiânia
(Anglo)
5
EBITDA Growth
• JBS remains a Growth Company.
*Pro forma including Bertin and Pilgrim’s Pride.
Source: JBS
6
32 51 73150 185
345432
548 602
1.156
3.058
4,92%5,73% 6,0%
11,0%9,7%
10,5%
11,2%
13,6%
4,3% 3,8%
5,5%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
EBITDA (R$ mm) EBITDA Margin
Our Strategy
2005/2006Adequate Financial Structure
2007/2008Global Production
Platform
2009/2010Global Sales &
Distribution Platform
2011/2012Value Added Products &Branding
- Access to raw material supply globally.
- Leader in countries with surplus production.
- Scale.- Leader in exports globally.- Access to all meat
markets.- Exchange of best
practices.- Efficiency cost gains.- Cost reduction
opportunities.- Margin improvements.
- Integrate the sales and distribution platform to serve efficiently, local and external markets, small retailers, food processors, restaurants, and other customers globally.
- Sales force distributed over the globe.
- Efficiency on selling the best product, to the best market, with the best price.
- Cost reduction on sales and transport.
- Margin improvements.
- High liquidity level.- Debt equalized to cash
generation.- Strong cash position.- Access to international
capital markets to finance growth.
- Development of long term financing plan.
- Use of export platform to grow.
- Hands-on working capital management.
South America
North America
Australia
European Union
Asia
Russia
Africa
Middle East
South America
North America
Australia
European Union
Debt forWorkingCapital
Equity to
FinanceGrowth
Cooked Products
Case ReadyProducts
Global Brands
MarketingInvestments
Minced Products
Fresh Products
Cured Products
Ready to EatProducts
- High technology investments to produce value added products.
- Increase value added products portfolio.
- Customized products to each market.
- Convenience to consumers day to day.
- Brand and Quality recognition and leadership.
- Marketing investments to be present in consumer minds.
- Margin improvements.
7
Our Strategy
Branding
Value Added
Products
Sales & Distribution
Platform
Production Platform
Foundation
Financial
Structure
Experienced
Management
Cost Reduction,Productivity,
Process Optimization
Risk
Management
EBITDA
Margin
4%
8
Batista Family Bertin Family
Controlling
Holding
Market
(Free Float)
JBS S.A.
(including Bertin)
JBS U.S.A.
Includes AUS
Pilgrim’s Pride
BNDES
Other
subsidiaries
59% 41%
100% 80% - 75%
20% - 25%
64%Other
shareholders
36%
US$ 2 Bn
Corporate Structure
9
Shareholders
10
Controlling Holding
59%
BNDESPAR19%
Individual1%
Foreign Investors
10%
Others10%
Production Units Employees
28,600 B
48,500 P
4,500 S
8,690 B
20,000 S
92,090 B
48,500 P
24,500 S
7,200,000 C
CPilgrims Pride 37 39,000 7,200,000
8,400 6,217
125,000
Daily Slaughter Capacity
3,500
6,995
24,295
B
B
B
JBS MERCOSUR
JBS USA
JBS Austrália
Inalca JBS
8
16
10
8
Total
JBS Brasil 61 44,993 43,400
140
3,000
(B) Beef; (P) Pork; (S) Smalls; (C) Chicken
Global Production Platform
11
Market Overview
12
Market Highlights
• Robust domestic consumption in Brazil.
• Growing middle classes in the Emerging Market sourcing more
product through imports.
• Recovery of exports from US allied with improved domestic American
consumption.
• European protein production declining.
• Gradual Improvement in exports generally with the reduction and/or
removal of trade barriers.
13
Per capita food consumption curve
(Kg / Year)
0
20
40
60
80
100
120
140
160
180
Cereals Roots and
Tubers
Beans, Peas
and Lentils
Sugar Oils Crops
and its
products
Meat Milk and its
products
1969/ 71
1979/ 81
1989/ 91
1999/ 01
2030
2050
Source: FAO
14
Source: Secex
Brazilian Beef exports
(Thousand Tons)
1,086
1,218
1,4911,425
1,263
1,095
780
0
200
400
600
800
1,000
1,200
1,400
1,600
2003 2004 2005 2006 2007 2008 2009
E.U. Russia Egypt Venezuela Algeria USA Hong Kong Others
15
Source: USDA ERS
1.8671.888
1.433
1.146
697
461
2.5202.449
2.269
2.4672.412
0
500
1.000
1.500
2.000
2.500
3.000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Mexico Canada South Korea Japan Vietnam China Hong Kong Netherlands Others
US Beef and Veal Exports (Million Pounds)
16
Source: USDA ERS
4.128
4.667
3.1422.995
2.667
2.181
1.7171.6121.560
1.2871.278
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Japan China Hong Kong Mexico Russia Canada South Korea Australia Others
US Pork Exports (Million Pounds)
17
Source: USDA ERS
6.9067.109
6.070
5.3675.333
4.9975.0134.942
5.738
5.1384.980
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Russia China (Mainland) Iraq Mexico Canada Cuba Other Chicken Others
US Poultry Exports (Million Pounds)
18
Strong Long-term Industry Fundamentals
Meats Consumption Per Capita
Per c
ap
ita c
on
su
mp
tion
(kg
/cap
ita)
Source: FAO
Recommended consumption 80kg/capita
Population growth coupled with rising worldwide standards of living will drive an increase in protein demand on emerging global middle class
19
4Q09 Highlights
20
Highlights for the 4th Quarter 2009
• Net Profit of R$127.9 million in 4Q09.
• Net Revenue for 2009 was R$34,311.8 million, representing a 13.1% increase y-o-y.
• In 4Q09 the consolidated EBITDA increased 49.6% compared to 4Q08, from
R$265.9 million to R$397.8 million. The consolidated EBITDA margin was 5.4% for
the period, compared with 2.8% for 4Q08
• Completion of the Bertin S.A. Merger and the acquisition of a controlling interest in
Pilgrim’s Pride Corporation.
• A pro forma Net Revenue in 2009 of R$55,223.6 million, 82.0% higher than 2008.
• EBITDA pro forma of R$3,058.0 million in 2009, increase of 164.5% over the
previous year.
21
JBS Consolidated Results
Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)
Source: JBS
EBITDA Margin (%)
-11.6%
36.3%
-3.8%
-20.4%
-0.1%
81.6%
-9.5%
-24.0%
13.1% 11.2%
22
Performance by Business Units
Net Sales(US$ billion)
EBITDA (US$ mi) EBITDA margin
JBS USA (Beef)Including Australia
Net Sales
(US$ million)
EBITDA (US$ mi) EBITDA margin
JBS USA (Pork)
Net Sales(€ million)
EBITDA (€ mi)
EBITDA margin
INALCA JBS
Net Sales(R$ billion)
EBITDA (R$ mi) EBITDA margin
JBS MERCOSUL
Source JBS
EBITDA Margin (%)
2.82.7
2.9 2.8 2.8
4Q08 1Q09 2Q09 3Q09 4Q09
108.4126.0
104.6
59.760.4
2.2% 2.2%
3.6% 3.8%4.5%
4Q08 1Q09 2Q09 3Q09 4Q09
600 526 554 559606
4Q08 1Q09 2Q09 3Q09 4Q09
25.6
7.5
24.7
15.3
28.6
4.3%
1.4%
4.5%
2.7%
4.7%
4Q08 1Q09 2Q09 3Q09 4Q09
162144 144 146 141
4Q08 1Q09 2Q09 3Q09 4Q09
8.3
5.66.6
9.7
7.0
5.1%3.9% 4.6%
6.6%
5.0%
4Q08 1Q09 2Q09 3Q09 4Q09
1.61.4
1.7 1.71.7
4Q08 1Q09 2Q09 3Q09 4Q09
23
Debt
• The Net Debt/EBITDA reduced from 3.3x in 3Q09 to 3.1x in 4Q09.
• JBS raised US$2.0 billion by issuing two million Debentures.
• The company’s cash position is sufficient to cover, almost entirely, the short term debt of JBS
• Current assets exceed current liabilities by almost 50%, demonstrating the liquidity of the
Company’s balance sheet.
Net Debt / EBITDA Pro Forma per Quarter
Source: JBS
Net Debt/ EBITDA EBITDA pro-forma
* LTM including Bertin and Pilgrim’s Pride pro-forma.
Gross debt Profile (R$ million)
24
*
37% 38%
63% 62%
2009 2008
Short Term Long Term
5,479.614,429.8
Revenue Distribution by Market
2009 2008
Source: JBS Source: JBS
E x ports
23%
Domes tic
Market
77%
E x ports
33% Domestic
Ma rket
67%
25
JBS Consolidated Exports Distribution
JBS Exports 2009
Source: JBS
JBS Exports 2008
26
Mexico18%
Russia13%
E.U,11%Japan
9%Canada
8%
Middle East7%
Hong Kong5%
South Korea4%
Taiwan4%
USA3%
China3%
Others15%
US$ 5.6 billion
Japan13%
E.U.11%
Russia10%
Canada8%
Mexico8%
Africa and Middle East7%
South Korea6%
Hong Kong6%
USA5%
China4%
Taiwan2%
Others19%
US$ 5.0 billion
Short Term Outlook
27
A Closer look at synergies – Pilgrim’s Pride
• USD 95 Million already captured, through initiatives in the personnel, transportation, and
packaging supply areas.
• USD 65 Million further by mid year, principally through G&A, exports, and logistic efficiencies.
• USD 200 / 300 Million total annual synergies.
28
0
2
4
6
8
10
12
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Announcement ofthe PPC acquisition by JBS
Closing of the acquisition
Pilgrim’s Pride Stock Price
Source: Bloomberg
A Closer look at synergies – Bertin S.A.
• R$145 million implemented by end of 1Q10 in packaging,
industrial processes, formulation and corporate.
• R$100 million further synergies to be realized particularly at
corporate and exports in the coming six months.
• Total annual synergies expected to reach R$500 million by
2011.
29
3030
Thank You
“In God We Trust, Nature We Respect”
IR Contacts:
+55 11 3144 4055
www.jbs.com.br/ir30
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