1q12 conference call presentation

7/30/2019 1Q12 Conference Call Presentation

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JBS S.A.

Results Presentation

1Q12


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JBS S.A.


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3PAGE

JBS Ranking1 Market Leader

2 Well-recognizedbrands

Largest global beef andlamb producer1

st

Largest global leatherprocessor1

st

Largest global chickenproducer2

nd

Largest dairyproducer in Brazil3

rd

Largest pork producerin the US3

rd

Source: JBS


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Well-recognized Brands, symbols of quality1 Market Leader

2 Well-recognizedbrands

USA

Australia

Brazil

Argentina
http://www.vigor.com.br/vigor/foodservice/marca.php?idm=4&idc=0http://www.vigor.com.br/vigor/foodservice/marca.php?idm=6&idc=0


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Perspectives for the animal protein market


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0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.0004.500

5.000

5.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

Beef and Veal exports Average Price (US$/Ton)

Australian Beef Exports (tons)

Brazilian Beef Exports (tons)

US Beef and Veal Exports (tons)

Source: USDA, MLA & Secex

Brazil, Australia and the US continue to lead global beef exports

-5.6%

-0.1%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

-1.0%

2.0%

0

500

1.000

1.5002.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

6.000

6.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1T11 1T12

-11.9%

17.1%


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7PAGESource: USDA & Secex

Brazilian Chicken Exports (tons) USA Chicken Exports (tons)

Chicken Exports Average Price (US$/Ton)

Chicken Exports Brazil vs US

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

-2.6%

4.5%

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

13.5%

15.8%


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8PAGESource: USDA & Secex

Brazilian Pork Exports (tons) USA Pork Exports (tons)

Pork Exports Average Price (US$/Ton)

Pork Exports US vs Brazil

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

300.000

600.000

900.000

1.200.000

1.500.000

1.800.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

-3.0%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

300.000

600.000

900.000

1.200.000

1.500.000

1.800.000

2006 2007 2008 2009 2010 2011 1Q11 1Q12

3.0%19.7%

3.7%


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1Q12 Highlights


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10PAGE

JBS posted consolidated net revenue of R$16.0 billion, 9.1% higher than 1Q11.

EBITDA was R$696.5 million. Consolidated EBITDA margin was 4.4%.

JBS Mercosul was highlight during the 1Q12 and posted net revenue of R$3,827.4 million, an increase of 6.2% over1Q11. The EBITDA increased 64.9% over the same period and was R$508.6 million, EBITDA margin was 13.3%.

JBS USA Pork business unit net revenue totaled US$855.4 million, 2.2% higher than 1Q11. The EBITDA wasUS$55.8 million.

The Company ended the quarter with R$5.15 billion in cash or cash equivalent, which represents more than 100%of short-term debt.

(1) 19/03/2012

1Q12 Highlights

Adjusted net Income in the period was R$240.3 million excluding deferred income tax liabilities generated by

goodwill (this only generates effective income tax payment if the company sells the investment that generatedgoodwill). Without this adjustment net income was R$116.1 million.


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11PAGESource: JBS

JBS Consolidated Results 1Q12

EBITDANet Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)

835.9

587.7

786.8

940.6

696.5

5.7

4.05.1 5.6

4.4

-12,0

8,0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

1Q11 2Q11 3Q11 4Q11 1Q12

14,672.7 14,116.3

15,567.816,934.5

16,011.1

1Q11 2Q11 3Q11 4Q11 1Q12

-3.8% +10.3% +8.8% -5.5%

-29.7% +33.9% +19.5% -26.0%

EBITDA Margin (%)


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Performance by Business Unit

Source: JBS

Quarterly Analysis

Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion)

EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million)

EBITDA Margin (%)

JBS Mercosul JBS USA

(Including Australia)

JBS USA JBS USA (PPC)

1.9 2.0 1.9 1.8 1.9

1Q11 2Q11 3Q11 4Q11 1Q12

3.84.0

4.2

4.5

4.1

1Q11 2Q11 3Q11 4Q11 1Q12

3.6 3.6

3.93.8 3.8

1Q11 2Q11 3Q11 4Q11 1Q12

836.6 846.0 867.1923.1 855.4

100,0

180,0

260,0

340,0

420,0

500,0

580,0

660,0

740,0

820,0

900,0

980,0

1060,0

1140,0

1220,0

1300,0

1Q11 2Q11 3Q11 4Q11 1Q12

-53.5 -47.6 -31.4 22.6104.0

-2.8% -2.4% -1.7%1.2%

5.5%

-200

-100

0

100

200

300

400

500

1Q11 2Q11 3Q11 4Q11 1Q12

308.3

427.9 453.8 407.7

508.68.6%

11.8%11.6% 10.7%

13.3%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0

100

200

300

400

500

600

700

800

1Q11 2Q11 3Q11 4Q11 1Q12

269.7

44.7

184.1223.6

-45.4

7.1%

1.1%

4.4% 5.0%

-1.1%

-30,0%

-28,0%

-26,0%

-24,0%

-22,0%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

-100

0

100

200

300

400

500

1Q11 2Q11 3Q11 4Q11 1Q12

101.783.6 75.9 77.0

55.8

12.2%9.9% 8.8% 8.3% 6.5%

-23,0%

-19,0%

-15,0%

-11,0%

-7,0%

-3,0%

1,0%

5,0%

9,0%

13,0%

-0,023

99,977

199,977

1Q11 2Q11 3Q11 4Q11 1Q12


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13PAGESource: JBS

JBS Consolidated Exports Distribution in 1Q12

Approximately US$ 2.0 billion in 1Q12

US$ 2,039.7million

Mexico 14.7%

Japan 10.2%

Russia 9.1%

E.U 5.9%

Canada 4.7%

Chile 3.8%

Taiwan 2.5%

Others 20.7%

China, Hong Kong andVietnam 14.4%

Africa and Middle East 7.9%

South Korea 6.1%


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27%

28%

28%

27%

30%

73%

72%

72%

73%

70%

1Q12

4Q11

3Q11

2Q11

1Q11

Source: JBS* subsidiary controlled by JBS with non-recourse debt.

Debt Profile

Net debt to EBITDA, excluding Pilgrims Pride Corp. (PPC)* was 3.6x.

Net debt to EBITDA, including Pilgrims Pride Corp. (PPC)* was 4.3x.

The Company ended the quarter with R$5.15 billion in cash or cash equivalent, which represents more than 100% of short-term debt.

Short Term Long Term

ST / LT Debt Profile

3.1

3.64.0 4.0

4.3x

0

1

2

3

4

-100

100

300

500

700

900

1100

1300

1500

1Q11 2Q11 3Q11 4Q11 1Q12

. Leverage EBITDA

Leverage

. LeverageEx-PPC EBITDA Ex-PPC

3.1 3.23.0 3.0

3.6x

0

1

2

3

4


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Amazon

Environmental

Satellite image

Social & Environmental

Purpose: reduce deforestation in the Amazon Biome; avoidpurchasing cattle from Environmentally Protected Areas EPAs,Indigenous reserves and protected areas; eradication of slavelabor in Brazil.

JBS Brazil monitors a 100% of its cattle suppliers properties viasatellite geo-referencing (GPS monitoring).

After the property coordinates are collected, the data is keyed intoJBSs registry of cattle suppliers and is sent to an outsource companyto be analyzed by superimposing on a map constructed from satelliteimages and the DETER(1) and PRODES(2) produced by Brazils NationalInstitute for Space Research INPE.

JBS contains a database of almost 12,000 cattle ranches registeredin the Amazon Biome.

Satellite image monitoring of the Amazon Biome

JBS actions related to cattle traceability and the Amazon BiomeSustainability

Source: JBS Sustainability Policy(1)Real Time Deforestation Detection(2)Legal Amazon Deforestation Monitoring Project

JBS SA participates in CDP - Carbon Disclosure Project.

Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.


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Mission

To be bestin what we set out to do, totally focusedonour business, ensuring the best products and services

for our customers, solidityfor our suppliers,satisfactory profitabilityfor our shareholders and the

certainty of a better future to all our employees.

1q12 conference call presentation

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