1q09 results presentation
DESCRIPTION
TRANSCRIPT
1st Quarter 2009 Results
JBS S.A.May 15th, 2009
“In God we Trust”
Rodrigo Gagliardi
Investor Relations Manager
Jeremiah O’Callaghan
Investor Relations Director
Joesley Mendonça Batista
CEO
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Presenters
Our Values
The Foundation Of Our Culture
Planning
Determination
Discipline
Availability
Openness
Simplicity
2
Agenda
1Q09 Highlights
Debt Profile
Consolidated Results
Questions and Answers
3
Our Strategy
Final Considerations
Revenue Distribution
Our Strategy
4
Net revenue increased 58.2% from R$5,859.1 million in 1Q08 to R$9,267.9 million in 1Q09.
Consolidated EBITDA increased 20.4% when compared with the same period last year from
R$175.7 to R$211.5 million.
The conclusion of financial and structural adjustments required with a view towards the ongoing
growth of the Company as defined in its strategy.
70.0% of the level reached in relation to cost reductions and efficiency increase.
Sustained EBITDA margin maintenance in the Beef operation in the US (2.2%) bearing in mind the
seasonality.
The improvement of the Brazilian market where an EBITDA margin of 7.2% was reached in 1Q09
indicating a positive trend in this market.
The consolidation of a Global Production Platform.
The consolidation of the strategy to build a sustainable, direct and efficient global distribution
platform of meat and meat products both chilled and frozen.
Highlights
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JBS Consolidated Results
Net Revenue, EBITDA and EBITDA Margin
Net Sales Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)
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Source: JBS
EBITDA Margin (%)
175.7
290.8
470.5
265.9
211.5
3.0%4.1%
2.8%
6.1%
2.3%
1Q08 2Q08 3Q08 4Q08 1Q09
5,859.1
7,129.57,771.5
9,633.29,267.9
1Q08 2Q08 3Q08 4Q08 1Q09
21.7%
65.5%
9.0%
61.8%
24.0%
-43.5%
-3.8%
-20.4%
Performance by Business Units
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Net Sales(US$ million)
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$ million)
EBITDA (R$ mi) EBITDA margin
JBS MERCOSUL
Source JBS
EBITDA Margin (%)
2.0
2.62.8 2.8 2.8
1Q08 2Q08 3Q08 4Q08 1Q09
59.760.4
-13.5
132.9155.6
-0.7%
5.1% 5.6%
2.2% 2.2%
1Q08 2Q08 3Q08 4Q08 1Q09
682620
536600
526
1Q08 2Q08 3Q08 4Q08 1Q09
7.5
25.6
15.619.9
52.1
1.4%
4.3%
7.6%
3.2%2.9%
1Q08 2Q08 3Q08 4Q08 1Q09
143140132
162144
1Q08 2Q08 3Q08 4Q08 1Q09
5.6
8.37.3
6.67.6
3.9%
5.1%5.3%4.7%5.6%
1Q08 2Q08 3Q08 4Q08 1Q09
1.31.4
1.8
1.6
1.4
1Q08 2Q08 3Q08 4Q08 1Q09
53.569.4
199,1
58.2
58,2
4.1%
10.4%
3.7%
5.6%4.3%
1Q08 2Q08 3Q08 4Q08 1Q09
JBS – Net Debt/EBITDA
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3.74
2.892.77
2.31
1.95
2.52
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
Net Debt / EBITDA Pro Forma per TRIMESTER
Exchange Rate:
R$ / US$ = 2.32 – 03/31/2009
US$ / €$ = 1.33 – 03/31/2009
*
• JBS continues its plan to reduce
leverage in 2009. Net Debt = R$ 4,174 MM
EBITDA pro forma = R$ 1,658 MM= 2.52
Source: JBS
Net Debt/ EBITDA EBITDA pro-forma
* LTM including Smithfield Beef pro-forma.
Evolution of the EBITDA Margins of JBS USA (Beef)
compared with its local peers
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Source: JBS and estimates of JBS based upon public data from peers
EBITDA margins of the Companies taking into consideration beef business
*Fiscal years for the Companies differ one from the other:
FY Tyson: October to September
FY Smithfield: May to April
FY National Beef: September to August
FY JBS USA: June to May (altered after the acquisition)
**The relevant quarterly period and adjustments made to the calendar year
EBITDA Margin (%)
JBS S.A. ManagementPrevious Management
0.9% 0.9%
6.4%
3.0%
1.1%
3.2%
-0.4%
2.3%
-0.9%
1.3%1.3%
0.5%
1.2%
-0.9%
5.1%
2.2%
2.2%
5.6%
0.3%
-0.6%
-3.5%
-0.7%
FY04* FY05* FY06* FY07* 3Q07** 4Q07** 1Q08** 2Q08** 3Q08** 4Q08** 1Q09**
Peers Average Beef USA
JBS Beef USA
5.7 p.p Gain
JBS Consolidated Gross Revenue Distribution
Revenue Distribution by Business Units 1Q09 Revenue Distribution by Market 1Q09
Source: JBS Source: JBS
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Domestic Market
78%
Exports
22%
Beef Italy
5% Beef Argentina
2%
Beef Brazil
15%
Beef USA
57%
Pork USA
12%
Beef Australia
9%
JBS Consolidated Exports Distribution
Exports Distribution 1Q09
Source: JBS
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Japan16%
E.U.16%
USA11%Mexico
9%
Russia8%
South Korea6%
China5%
Hong Kong5%
Canada4%
Middle East4%
Taiwan2%
Others14%
JBS Exports 1Q09: US$ 901.4 Million
Final Considerations
• We are motivated and confident about the Company’s performance in
2009
• We will continue to take good care of the financials of the Company.
• In April 2009, JBS USA issued a Senior Unsecured Notes in the principal
amount of US$700 million, with a coupon of 11.625%, due 2014.
• Our global production platform will continue to grow in the search for
efficiencies, new synergies between our operations with an eye towards
reducing costs.
• We will consolidate the strategy of creating a sustainable, direct and
efficient Global distribution platform of meat and meat products both chilled
and frozen.
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Questions & Answers
JBS S.A.May 15th, 2009
“In God we Trust”
DISCLAIMER
The forward-looking statements presented herein are subject to risks and uncertainties. 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 may differ 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.
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