1q08 conference call presentation

7/30/2019 1Q08 Conference Call Presentation

1/14

JBS S.A.1Q08 Results

May 15, 2008


2/14

Presenters

Rodrigo Gagliardi

Investor Relations Manager

1

Srgio Longo

Finance and IR Director

Joesley Mendona Batista

CEO


3/14

In the 1Q08 JBSs net revenue grew by 439.4% when compared to the 1Q07,from R$1,086.1 (1Q07) to R$5,859.1 million (1Q08).

JBSs consolidated EBITDA margin for the 1Q08 was 3.0%, a 85.9% jumpcompared to the previous quarter.

JBS USAs gross margin (including JBS Australia) increased by 3.2% to 5.0% inthe 1Q08, compared with the 4Q07.

JBS USA (including JBS Australia) had an EBITDA margin of 0.6% in the 1Q08,up from the -1.4% margin on the 4Q07.

JBS USA (including JBS Australia) had a 20.3% gain in net revenue in the 1Q08versus the 1Q07 figure.

JBS MERCOSULs result was negatively impacted by the European Union

restrictions on its activities and by the economic conjuncture in Argentina.

With operations in four important production and distribution platforms (USA,MERCOSUL, Australia and Europe), JBS shall capture strong advantages incomparison to its regional competitors, taking into consideration the currentmomentum of increase in demand and low protein offer, in addition to thescenario of convergence of margins due to the highest globalization of theindustry.

2

Highlights


4/14

CONSOLIDATED RESULTS

RESULTS BY BUSINESS UNITS

MARKET SCENARIO

QUESTIONS AND ANSWERS

AGENDA

3


5/14

345.1

564.9 591.1

94.8176.3

3.0%

4.2%

1.4%

14.2%

9.6%

12M05 12M06 12M07 4Q07 1Q08

5,859.16,650.7

14,141.6

3,967.63,577.1

12M05 12M06 12M07 4Q07 1Q08

JBS CONSOLIDATED RESULTS Net Revenue,

EBITDA and EBITDA Margin

Net Revenue (R$ million) EBITDA and EBITDA Margin

EBITDA Margin (%)

10.9% 256.4% 63.7% 4.6%

Source: JBS

Without considering the acquisitions of National Beef, Smithfield Beef and Tasman.

4


6/14

159.3

591.1564.9

345.1286.8

9.1% 9.6%4.2%

14.2%

2.9%

12M04 12M05 12M06 12M07 1Q08

5,554.2

14,141.6

3,967.63,577.13,158.0

12M04 12M05 12M06 12M07 1Q08

EVOLUTION OF THE GUIDANCE PUBLISHED IN

01/27/2008 (Without considering the INALCA

and recent acquisitions)

Net Revenue (R$ million) EBITDA and EBITDA Margin

EBITDA Margin (%)

10.9% 256.4% 63.7% 4.6%13.3%20.3%

25,500.0

1,275.0

Source: JBS

Without considering the acquisitions of Inalca, National Beef, Smithfield Beef and Tasman.

22%

12%

5


7/14

JBS CONSOLIDATED

Net Debt over EBITDA

Net Debt/EBITDA*

(R$ million)

Consolidated Pro-forma LTM

Source: JBS

1,474 1,413

2,329 2,368

2,083

2.9x3.7x3.3x

2.3x2.5x

1Q07 2Q07 3Q07 2007 1Q08

6


8/14

JBS CONSOLIDATED Sales Distribution

Source: JBS

Beef USA44%

Beef Brazil21%

Pork USA15%

BeefAustralia

12%

BeefArgentina

2%

Beef Italy5%

Sales Distribution by Division 1Q08

DomesticMarket

66%

Exports34%

Sales Distribution by Market 1Q08

Impacted by theUSA domesticmarket

Source: JBS

7


9/14

JBS CONSOLIDATED Exports Distribution

E.U.

18%

Mexico

12%

Russia7%

Others

19%

USA6%

Taiwan3%

Hong Kong5%

Canada

5%

South Korea5%

China

6%

Japan14%

Exports Distribution 1Q08

Source: JBS

JBS Exports 1Q08: US$ 1.2 billion

8


10/14

JBS PERFORMANCE BY BUSINESS UNITS

5,4615,5795,604

1,8651,634

FY05 FY06 FY07 4Q07 1Q08

Net Revenue

(US$ million)

EBITDA (US$ mi)EBITDA Margin

-21.8

-99.3

-65.1

-97.1

-19.8

-1.3%

-5.3%

-0.4%-1.7%

-1.2%

FY05 FY06 FY07 4Q07 1Q08

Margin (%)

Source: JBSFY of Swift used to be from June to May and INALCA period is from January to December.

JBS USA (Beef)

(1) 14 weeks ended in 12/30/2007. (2) 13 weeks ended in 03/30/2008. (3) Values referring to 100% of INALCA JBS Pro Forma.

(4) EBITDA Normalization of JBS Argentina to 3% and maintenance of EBITDA in JBS Brazil. 9

2,1752,0702,243

598 536

FY05 FY06 FY07 4Q07 1Q08

Net Revenue

(US$ million)


15.7

40.5

122.1

73.3 70.3

2.9%

6.8%

3.2%

3.5%

5.4%

FY05 FY06 FY07 4Q07 1Q08

Margin (%)

JBS USA (Pork)

Net Revenue

(US$ million)


20.917.7

106.0

29.5

45.6

6.1%

3.5%2.4%

1.7%

5.7%

FY05 FY06 FY07 4Q07 1Q08

Margin (%)

JBS Australia

1,0411,0451,006

275 264

FY05 FY06 FY07 4Q07 1Q08

Net Revenue

($ million)

EBITDA ( $ mi)EBITDA Margin

14.716.5

44.0 45.051.0

5.6%6.0%

4.9%

4.8%

4.3%

FY05 FY06 FY07 4Q07 1Q08

Margin (%)

INALCA JBS (3)

4,892

3,9683,577

1,319 1,271

FY05 FY06 FY07 4Q07 1Q08

Net Revenue

(R$ million)

EBITDA (R$ mi)EBITDA Margin

Margin (%)

JBS MERCOSUL

1,9141,7451,871

503 342

FY05 FY06 FY07 4Q07 1Q08(1) (2) (1) (2) (1) (2)

(1) (2) (1) (2) (1) (2) (4)

565.0

132.7

199.1

692.5

345.0

143.7

11.3%10.4 %

15.1%14.2%14.2 %

9.6%

F Y0 5 F Y0 6 F Y0 7 4 T0 7 1Q0 8 1Q0 8 *


11/14

Global Cattle Prices US$/@

10

Source: JBS

Converging Prices

Converging Margins

20.00

25.00

30.00

35.00

40.00

45.00

50.00

55.00

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Ju l-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec -07 Jan-08 Feb-08 Mar-08 Apr-08

BRA AUS ARG USA


12/14

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

70

132

137

142

147

152

157

Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08

Mar gin/Head Cattle Pr ic e Be ef Pr ic e

Beef Price vs. Cattle Price in USA

Source: Bloomberg

11


13/14

QUESTIONS & ANSWERS

12


14/14

Disclaimer

13

The forward-looking statements presented herein are subject to risks anduncertainties. These statements are based on the beliefs and assumptions of our

management, and on information currently available to us.

Forward-looking statements are not guarantees of performance. They involve

risks, uncertainties and assumptions because they relate to future events and

therefore depend on circumstances that may or may not occur. Our future

operating results, financial condition, strategies, market share and values maydiffer materially from those expressed in or suggested by these forward-looking

statements. Many of the factors that will determine these results and values are

beyond our ability to control or predict.

Forward-looking statements also include information concerning our possible or

assumed future operating results, as well as statements preceded by, followed by,

or including the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.

1q08 conference call presentation

Documents