1q12 earnings release

7/30/2019 1Q12 Earnings Release

1/18

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JBS S.A. (Bovespa: JBSS3)*

JBS report

Net reven

1Q12 HIGHLIGHTS

JBS posted consolidated n

Consolidated EBITDA was

JBS Mercosul was the

million, an increase of

was R$508.6 million, EBI

JBS USA Pork net reveUS$55.8 million.

JBS USA Chicken (PP

million in the period, re

Adjusted net Income in

liabilities generated by g

company sells the investm

was R$116.1 million.

The Company ended t

corresponding to 100% of s

2012 Events

JBS initiated operations in

with capacity to process 1

JBS adds 12 beef slaughte

head/day.

This expansion in Brazil, in

revenue of R$4.5 billion.

The approval of the Volu

Vigor.

*JBS S.A. (JBS) (Bovespa: JBSS3), the g

of 2012 (1Q12). For the purpose of an

and March 31, 2011 (1Q11).

The consolidated results of JBS are pres

results in the currency of the country in

JBS USA and both results refer to the p

and heads slaughtered, are not audite

esults for 1Q12

So P

d adjusted net income of R$240

e increased 9.1% compared with

et revenue of R$16.0 billion, 9.1% higher th

$696.5 million. EBITDA margin was 4.4%.

highlight during the quarter reporting n

.2% over 1Q11. EBITDA increased 64.9% o

DA margin was 13.3%.

nue totaled US$855.4 million, 2.2% higher

) posted net revenue of US$1.9 billion

ersing the negative result presented in 1Q

the period was R$240.3 million excludin

odwill (this only generates effective inco

ent that generated goodwill). Without this

he quarter with R$5.15 billion in cas

hort-term debt.

the poultry industry in Brazil through the le

.1 million birds/day.

r units in Brazil with a combined capacity

poultry and beef, will add an estimate

tary Public Offering to Exchange JBS sh

lobal leading producer of animal protein announces to

lysis, this report considers the results for the quarter en

nted in Brazilian Real (R$) and when separately analyz

which it operates. The operations of JBS Australia are

riod of 13 weeks ended May 25, 2012 (1Q12). The qua

.

1

ulo, May 15th, 2012

illion

1Q11

n 1Q11.

t revenue of R$3,827.4

er the same period and

than 1Q11. EBITDA was

nd EBITDA of US$104.0

11.

deferred income tax

me tax payment if the

adjustment net income

or cash equivalent,

ase of Frangosul assets,

to process around 8,000

additional annualized

res for shares issued by

day its results for the first quarter

ed December 31, 2011 (4Q11)

d, each business unit reports its

n integral part of the subsidiary

ntitative data, such as volumes


2/18

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ANALYSIS OF RESULTS BY BUSI

Analysis of the principal financi

Net Revenue

JBS USA Beef US$

JBS USA Pork US$

JBS USA Chicken US$

JBS Mercosul R$

EBITDA

JBS USA Beef US$

JBS USA Pork US$

JBS USA Chicken US$JBS Mercosul R$

EBITDA Margin

JBS USA Beef %

JBS USA Pork %

JBS USA Chicken %

JBS Mercosul %

Net sales (R$ billion) Net sales

EBITDA (R$ million) EBITDA (

EBITDA Margin (%)

JBS Mercosul JBS US

(Includin

3.84.

1Q11 2Q

3.6 3.6

3.93.8 3.8

1Q11 2Q11 3Q11 4Q11 1Q12

308,3

427.9 453.8 407.7

508.68.6%

11.8%11.6% 10.7%

13.3%

- 1 0 .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

7.1%

1.

- 1 0 0

0

100

200

300

400

500

1Q11 2Q

Performance byBusiness Unit

esults for 1Q12

ESS UNIT

l indicators of JBS by Business Unit (in lo

1Q12 4Q11 %

4,078.8 4,491.6 -9.2%

855.4 923.1 -7.3%

1,888.8 1,829.3 3.3%

3,827.4 3,800.5 0.7%

-45.4 223.6 -

55.8 77.0 -27.5%

104.0 22.6 360.1%508.6 407.7 24.7%

-1.1% 5.0% -

6.5% 8.3% -

5.5% 1.2% -

13.3% 10.7% -

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

US$ million) EBITDA (US$ million)

Australia)JBS USA

.0

4.2

4.5

4.1

11 3Q11 4Q11 1Q12

836,6 846.0 867.1923.1 855.4

1 0 0 .0

1 8 0 .0

2 6 0 .0

3 4 0 .0

4 2 0 .0

5 0 0 .0

5 8 0 .0

6 6 0 .0

7 4 0 .0

8 2 0 .0

9 0 0 .0

9 8 0 .0

1 0 6 0 .0

1 1 4 0 .0

1 2 2 0 .0

1 3 0 0 .0

1Q11 2Q11 3Q11 4Q11 1Q12

.7

184.1223.6

-45,4

.1%

4.4% 5.0%

-1.1%

- 3 0 .0%

- 2 8 .0%

- 2 6 .0%

- 2 4 .0%

- 2 2 .0%

- 2 0 .0%

- 1 8 .0%

- 1 6 .0%

- 1 4 .0%

- 1 2 .0%

- 1 0 .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%

11 3Q11 4Q11 1Q12

101.783.6 75.9 77.0

55.8

12.2%9.9% 8.8% 8.3% 6.5%

- 2 3 .0%

- 1 9 .0%

- 1 5 .0%

- 1 1 .0%

-7. 0%

-3. 0%

1. 0%

5. 0%

9. 0%

13. 0%

-0 .023

99. 977

1 9 9 .977

1Q11 2Q11 3Q11 4Q11 1Q12

2

al currency)

1Q11 %

3,793.3 7.5%

836.6 2.2%

1,892.5 -0.2%

3,604.2 6.2%

269.7 -

101.7 -45.1%

-53.5 -308.3 64.9%

7.1% -

12.2% -

-2.8% -

8.6% -

Net sales (US$ billion)

EBITDA (US$ million)

JBS USA (PPC)

1.9 2.0 1.9 1.8 1.9

1Q11 2Q11 3Q11 4Q11 1Q12

-53,5 -47,6 -31,4 22,6

104,0

-2.8% -2.4% -1.7%1.2%

5.5%

- 2 5 .0%

- 2 3 .0%

- 2 1 .0%

- 1 9 .0%

- 1 7 .0%

- 1 5 .0%

- 1 3 .0%

- 1 1 .0%

-9. 0%

-7. 0%

-5. 0%

-3. 0%

-1. 0%

1. 0%

3. 0%

5. 0%

7. 0%

9. 0%

- 2 0 0

- 1 0 0

0

100

200

300

400

500

1Q11 2Q11 3Q11 4Q11 1Q12


3/18

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Consolidated analysis of the pri

(1) Participation of Controlling Shareholders.

Number of Heads Processed an

* Not including chicken

R$ million

Net Revenue

Cost of Goods SoldGross Income

Gross Margin

Selling Expenses

General and Adm. Expenses

Net Financial Income (expense)

Other Income (expense)

Operating Income

Income and social contribution taxes

Participation of non-controlling sharehol

Net Income (Loss)(1)

EBITDA

EBITDA Margin

Net Income (Loss) per share

Heads Processed (thousand)

Cattle

Hogs

Smalls

Volume Sold (thousand tons)*

Domestic Market*

Fresh and Chilled Beef

Processed Beef

Others

Exports


Processed Beef

Others

TOTAL

esults for 1Q12

cipal operational indicators of JBS

Sales Volume*

1Q12 4Q11 %

16,011.1 16,934.5 -5.5%

(14,357.2) (15,040.0) -4.5%1,653.9 1,894.5 -12.7%

10.3% 11.2% -

(816.4) (839.3) -2.7%

(427.9) (491.4) -12.9%

(155.8) (549.2) -71.6%

(12.2) (22.4) -45.6%

241.6 (7.9) -

(112.1) (15.3) 632.6%

ders (13.4) 48.7 -

116.1 25.6 354.0%

696.5 940.6 -26.0%

4.4% 5.6% -

0.04 0.01 -

1Q12 4Q11 %

3,717.9 3,625.7 2.5%

3,307.0 3,651.9 -9.4%

934.8 894.7 4.5%

1,706.1 1,667.9 2.3%

1,449.3 1,423.2 1.8%

34.8 35.9 -3.1%

222.0 208.9 6.3%

448.9 502.9 -10.7%

418.2 472.4 -11.5%

14.7 14.4 1.8%

16.1 16.1 -0.3%

2,155.0 2,170.9 -0.7%

3

1Q11 %

14,672.7 9.1%

(12,984.3) 10.6%1,688.4 -2.0%

11.5% -

(737.5) 10.7%

(418.9) 2.1%

(351.1) -55.6%

(8.8) 39.0%

172.2 40.3%

(82.2) 36.3%

57.0 -

147.0 -21.0%

835.9 -16.7%

5.7% -

0.06 -

1Q11 %

3,750.2 -0.9%

3,303.6 0.1%

574.0 62.9%

1,738.4 -1.9%

1,467.4 -1.2%

32.9 5.6%

238.0 -6.8%

499.0 -10.0%

466.7 -10.4%

17.8 -17.5%

14.5 10.9%

2,237.4 -3.7%


4/18

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CONSOLIDATED RESULTS

Net Revenue

JBS consolidated net revenue in

1Q11 when the Company posteperformance in the USA Beef,

Unit, which presented an increacombined with export price incr

In 1Q12, approximately 78% ofthe Company is present and 22

EBITDA

1Q12 EBITDA was R$696.5 millionnegative result coming from JUS$45.4 million, compared to p

offset by the reversal of PPC npositive in 1Q12. JBS Mercosul

period, which more than offsetEBITDA margin was 4.4%

This result reinforces the imdiversification, as can be see

performance of some business

Financial Result

1Q12 financial result was R$155exchange rate variation in the

exchange rate of U.S. Dollar aresult was negative R$109.9

maintained since the previous p

Net Income

Adjusted net Income in the perigenerated by goodwill (this onlthe investment that generate

million.

Capital Expenditure

In 1Q12, total capital expenditu

million, 7.4% lower than 1Q11 amillion. The main focus of inv

increase in storage capacity an

esults for 1Q12

1Q12 was R$16,011.1 million, an increas

d R$14,672.7 million. This expansion wasue to higher prices during the quarter

se of 16.0% in volume sold of fresh beef iease.

global sales were generated domesticcame from exports.

, a decline of 16.7% compared to 1Q11.BS USA Beef business unit, which postsitive EBITDA of US$ 269.7 million in 1Q11.

egative EBITDA of US$53.5 million in 1Qexpanded its EBITDA by approximatel

the lower results in the JBS USA Pork busi

portance of the Companys proteion the consolidated results, made

nits at times when other business units fa

.8 million, an improvement of 55.6% overiod of R$230.0 million, driven mainly b

gainst the Real in the period. On theillion, due to long positions in U.S.

eriod and increased during 1Q12 at fav

od was R$240.3 million excluding deferrgenerates effective income tax paymgoodwill). Without this adjustment ne

re (CAPEX) of JBS in property, plant, an

d in line with depreciation and amortizstments were for the improvement o

d distribution globally.

4

e of 9.1% compared to

aused primarily by the, and by the Mercosul

n the domestic market

lly in the markets that

This result was due to ad negative EBITDA ofThis result was partially

1, to US$ 104.0 millionly R$200 million in the

ness. The consolidated

n and geographicalpossible by the good

ce difficulties.

er 1Q11, reflecting they 2.9% decrease in the

ther hand, derivativescurrency which were

rable rates.

d income tax liabilitiesnt if the company sellst income was R$116.1

equipment was R$292

ation which was R$285productivity and the

*


5/18

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Indebtedness

JBS net debt to EBITDA, excludiwas 3.6x at the end of 1Q12. T

margin during the 1Q12, which

JBS (excluding PPC)

(1) EBITDA LTM. U.S. dollar exchange rate of

due to the fact that PPC is a non-recourse s

Including Pilgrims Pride, leverabeef weak performance, aswhich added US$157,5 million to

JBS including Pilgrims Pride

(1) EBITDA LTM. U.S. dollar exchange rate of

R$ million

Gross debt

(+) Short Term Debt

(+) Long Term Debt

(-) Cash and Equivalents

Net debt

Net debt/EBITDA

R$ million

Gross debt

(+) Short Term Debt

(+) Long Term Debt

(-) Cash and Equivalents

Net debt

Net debt/EBITDA

esults for 1Q12

g Pilgrims Pride (PPC), a US Listed Come leverage indicator increased due to

egatively impacted EBITDA LTM in US$33

the last day of the period. Pilgrims Pride was excluded f

bsidiary controlled by JBS.

e increased from 4.0x in 4Q11 to 4.3x ientioned previously, despite PPC gooLTM EBITDA.

the last day of the period.

3/31/12 1

16,380.9 1

4,990.3

11,390.6 1

5,055.6

11,325.3 1

3.6x

3/31/12 1

18,686.1 1

5,018.7

13,667.3 1

5,150.8

13,535.3 1

4.3x

5

any controlled by JBS,JBS USA Beef negative

2.1 million.

rom the debt calculation of JBS

1Q12, due to JBS USAd result, as expected,

2/31/11 Var.%

6,201.8 1.1%

,310.1 -6.0%

0,891.7 4.6%

,195.7 -2.7%

1,006.1 2.9%

3.0x

2/31/11 Var.%

8,872.2 -1.0%

5,339.4 -6.0%

3,532.8 1.0%

5,288.2 -2.6%

3,584.0 -0.4%

4.0x


6/18

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Cash Position

The Company ended the quart

to 100% of short-term debt.

Source: JBS

3.1

-100

100

300

500

700

900

1100

1300

1500

1Q1

. Levera

Leverage

. Levera

3.1

27%

28%

28%

27%

30

1Q12

4Q11

3Q11

2Q11

1Q11

Short Term

ST / LT Debt Pr

esults for 1Q12

er with R$5.15 billion in cash or cash eq

3.6

4.0 4.0

4.3x

1 2Q11 3Q11 4Q11 1Q12

ge EBITDA

geEx-PPC EBITDA Ex-PPC

3.23.0 3.0

3.6x

73%

72%

72%

73%

70%

Long Term

file

6

ivalent, corresponding

0

1

2

3

4

0

1

2

3

4


7/18

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ANALYSIS OF RESULTS BY BUSI

JBS USA Beef (including Australi

1Q12 net revenue for this busin

result reflects an increase in a2011. Compared to 4Q11, revolumes and reduced prices in

EBITDA was negative US$45.4

increased 17.6% in the period,Dollar in the quarter which impcattle in the U.S. was combined

The Company believes in the rea balance between supply anhigher cattle availability seasoncost, focused on increased profi

Highlights (US GAAP)

Breakdown of Net Revenues

US$ million

Heads slaughtered (thousand)

Net Revenue

EBITDA

EBITDA margin %

Domestic Market

Net Revenue (US$ million)

Volume (tons)Average Price (US$/Kg)

Exports


Volume (tons)

Average Price (US$/Kg)

esults for 1Q12

ESS UNIT

),45% of JBS S.A. Net Revenue

ss unit was US$4,078.8 million, outperfor

erage sales prices in the domestic anenue decreased 9.2%, as a consequhe domestic market.

illion, impacted by an historical high p

and by a 4.8% appreciation of Australcted cost of goods sold in that country.with low sales prices both domestically

covery of margins in this sector throughdemand during 2012, besides the inc

ally. The management remains committitability per animal processed and an im

1Q12 4Q11 %

1,960.3 2,108.7 -7.0%

4,078.8 4,491.6 -9.2%

(45.4) 223.6 -

-1.1% 5.0%

1Q12 4Q11 %

3,105.4 3,261.8 -4.8%

881.3 872.9 1.0%3.52 3.74 -5.7%

1Q12 4Q11 %

973.3 1,229.9 -20.9%

249.4 304.7 -18.1%

3.90 4.04 -3.3%

7

ing 4Q11 by 7.5%. This

export markets sinceence of lower export

ice of livestock, which

lian Dollar against U.S.his increase in price ofnd in exports.

better sales prices andrease in demand andd to operate with lowroved sales mix.

1Q11 %

2,003.1 -2.1%

3,793.3 7.5%

269.7 -

7.1%

1Q11 %

2,774.1 11.9%

908.7 -3.0%3.05 15.4%

1Q11 %

1,019.2 -4.5%

280.8 -11.2%

3.63 7.5%


8/18

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JBS USA Pork, 10% of JBS S.A. N

Net revenue for the quarter wincrease in domestic average sas a result of seasonally lower n

EBITDA was US$55.8 million duri3.5% increase in raw materialweaker markets.



US$ million

Animals slaughtered (thousand)

Net Revenue

EBITDA

EBITDA margin %

Domestic Market

Net Revenue (US$ million)Volume (thousand tons)


Exports


Volume (thousand tons)


esults for 1Q12

et Revenue

as US$855.4 million, 2.2% above 1Q11,les prices. Compared to 4Q11, there

mber of heads processed and sales vol

g 1Q12 and margin was 6.5%. 1Q12 rescombined with a reduction in export

1Q12 4Q11 %

3,307.0 3,651.9 -9.4%

855.4 923.1 -7.3%

55.8 77.0 -27.5%

6.5% 8.3%

1Q12 4Q11 %

697.5 763.9 -8.7%292.3 310.5 -5.9%

2.39 2.46 -3.0%

1Q12 4Q11 %

157.9 159.2 -0.8%

68.5 65.8 4.1%

2.30 2.42 -4.7%

8

reflecting primarily anas a decrease of 7.3%me.

ults were impacted byvolume, due to some

1Q11 %

3,303.6 0.1%

836.6 2.2%

101.7 -45.1%

12.2%

1Q11 %

683.2 2.1%321.0 -8.9%

2.13 12.1%

1Q11 %

153.4 2.9%

71.5 -4.2%

2.15 7.4%


9/18

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JBS USA Chicken (Pilgrims Prideof JBS S.A. Net Revenue

1Q12 net revenue was US$1,8

US$104.0 million, reversing the n

The resumption of margins in tobtained positive operating ca

the period. There was also a rethe offering made in 1Q12 and

These results reinforce the Comand "spirit of ownership" at all l

value all cuts of the bird and nmargins and maintain profitabili

In addition, the Company beligrain prices, by focusing on red


US$ million

Net Revenue

EBITDA

EBITDA margin %

esults for 1Q12

Corporation, a US listed Company cont

8.8 million, stable compared to 1Q11.

gative result of US$53.5 million in 1Q11.

e chicken industry can be proven by fish flow of US$29.4 million and net inco

uction of US$221.5 million in net debt thrash generation in the period.

any's strategy to operate with low cost,evels of the organization. The focus of

t be dependent only on the high pricey in the long run.

ves that the industry can be profitablcing costs and balancing supply and d

1Q12 4Q11 %

1,888.8 1,829.3 3.3%

104.0 22.6 360.1%

5.5% 1.2%

9

olled by JBS USA), 21%

Adjusted EBITDA was

irst quarter results. PPCe of US$39.6 million in

ough the conclusion of

operational efficiencyhe administration is to

of white meat to raise

even with volatility inmand.

1Q11 %

1,892.5 -0.2%

(53.5) -

-2.8%


10/18

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JBS Mercosul, 24% of JBS S.A. N

Net revenue of JBS Mercosul

comparison with 1Q11, as a rCompared to 4Q11, revenue w

64.9% in comparison with 1Q11.

JBS Mercosul exceptional resul

numbers of JBS Controller (Commargin increased from 21.4% inlivestock for slaughter and imprR$514.4 million with EBITDA marand reduction in operating cost

Highlights


R$ million

Heads slaughtered (thousand)

Net Revenue

EBITDA

EBITDA margin %

Domestic Market

Net Revenue (million R$)

Fresh and Chilled Product

Processed Items

Others

TOTAL

Volume (thousand tons)

Fresh and Chilled ProductProcessed Items

Others

TOTAL

Average Price (R$/Kg)

Fresh and Chilled Product

Processed Items

Others

esults for 1Q12

t Revenue

ame in at R$3,827.4 million in 1Q12,

esult of an increase in domestic sales flat. EBITDA for the quarter was R$508.

EBITDA margin was the highlight and ca

was driven by the beef operation in

pany) in the income statement (page 11Q11 to 26.8% in 1Q12, reflecting the ived price base of raw materials. EBITDin of 15.4% which demonstrates the syn.

1Q12 4Q11 %

1,757.6 1,517.0 15.9%

3,827.4 3,800.5 0.7%

508.6 407.7 24.7%

13.3% 10.7%

1Q12 4Q11 %

1,828.8 1,748.9 4.6%

190.6 195.9 -2.7%

559.1 553.3 1.0%

2,578.5 2,498.0 3.2%

275.8 239.7 15.1%34.8 35.9 -3.1%

222.0 208.9 6.3%

532.5 484.5 9.9%

6.63 7.30 -9.2%

5.48 5.46 0.4%

2.52 2.65 -4.9%

10

n increase of 6.2% in

prices and volumes.million, an increase of

me in at 13.3%.

razil, as shown by the

6 of this release). Grosscreased availability of

at JBS Controller wasergy gains during 2011

1Q11 %

1,747.1 0.6%

3,604.2 6.2%

308.3 64.9%

8.6%

1Q11 %

1,625.6 12.5%

183.0 4.1%

448.5 24.6%

2,257.1 14.2%

237.7 16.0%32.9 5.6%

238.0 -6.8%

508.7 4.7%

6.84 -3.1%

5.56 -1.4%

1.88 34.0%


11/18

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JBS Mercosul, 24% of JBS S.A. N


Exports

Net Revenue (million R$)


Processed Beef

Others

TOTAL

Volume (thousand tons)Fresh and Chilled Beef

Processed Beef

Others

TOTAL

Average Price (R$/Kg)


Processed Beef

Others

esults for 1Q12

t Revenues

1Q12 4Q11 %

817.9 892.4 -8.3%

173.7 159.5 8.9%

257.3 250.5 2.7%

1,248.9 1,302.4 -4.1%

100.3 101.9 -1.7%

14.7 14.4 1.8%

16.1 16.1 -0.3%

131.0 132.5 -1.1%

8.16 8.75 -6.8%

11.84 11.07 7.0%

16.03 15.56 3.0%

11

1Q11 %

872.7 -6.3%

166.3 4.5%

308.1 -16.5%

1,347.0 -7.3%

114.4 -12.4%

17.8 -17.5%

14.5 10.9%

146.7 -10.7%

7.63 6.9%

9.35 26.7%

21.29 -24.7%


12/18

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TABLES AND CHARTS

Graph I - JBS Consolidated Exp

Source: JBS

Table I - Breakdown of Producti

Source: JBS

Ru

E.U 5.9%

Canada 4.7%

Chile 3.8%

Taiwan 2.5%

Others 20.7%

1Q12 (%)

Raw material (livestock)

Processing (including

ingredients and packaging)

Labor Cost

esults for 1Q12

rts Distribution 1Q12

n Costs by Business Unit (%)

US$ 2,039.7

million

Mexico 14.7%

Japa

sia 9.1%

China,Viet

Africa and Middl

South Korea 6.1%

onsolidated JBS Mercosul USA Beef

80.3% 86.2% 87.4%

10.6% 7.7% 5.5%

9.2% 6.2% 7.1%

12

n 10.2%

ong Kong andam 14.4%

East 7.9%

USA Pork USA Chicken

83.0% 55.6%

7.3% 27.3%

9.7% 17.1%


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To Contact JBS:

Av

esults for 1Q12

Head Office

nida Marginal Direita do Tiet, 500CEP: 05118-100 So Paulo SP

BrazilPhone: (55 11) 3144-4000

Fax: (55 11) 3144-4171

www.jbs.com.brInvestor Relations

Phone: (55 11) 3144-4447

E-mail: [email protected]/ir

13


14/18

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CONSOLI

JBS S.A.

Balance sheets

(In thousands of Reais)

ASSETS

CURRENT ASSETS

Cash and cas h equivalents

Trade accounts receivable, net

Inventories

Biological assets

Recoverable taxesPrepaid expenses

Other current assets

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Long-term assets

Credits with related parties

Judicial deposits and others

Recoverable taxes

Total long-term assets

Investments in subsidiaries

Property, plant and equipment, net

Intangible assets, net

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

The accompanying notes are an integral p

esults for 1Q12

ATED FINANCIAL STATEMENTS JBS S.

March 31, 2012 December 31, 2011 March 31,

3,177,231 3,612,867 5,150

1,840,663 1,883,093 4,431

1,691,558 1,544,261 5,594

- - 171

1,421,441 1,330,609 1,91613,099 8,148 138

219,142 256,225 467

8,363,134 8,635,203 17,869

611,629 88,505 498

167,347 104,207 411

560,558 562,027 622

1,339,534 754,739 1,532

6,254,220 7,561,574

8,057,574 7,803,582 15,364

9,531,393 9,531,506 12,478

23,843,187 24,896,662 27,843

25,182,721 25,651,401 29,375

33,545,855 34,286,604 47,245

art of the financial statements

Company

14

.

012 December 31, 2011

,828 5,288,194

,010 4,679,846

,857 5,405,705

,295 209,543

,537 1,690,311,013 131,033

,021 526,649

,561 17,931,281

,069 552,197

,653 389,947

,664 626,126

,386 1,568,270

- -

,157 15,378,714

,965 12,532,619

,122 27,911,333

,508 29,479,603

,069 47,410,884

Consolidated


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JBS S.A.

Balance sheets


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Trade accounts payable

Loans and financings

Income taxes

Payroll, social charges and tax obligation

Payables related to facilities acquisitions

Other current liabilities

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Loans and financings

Convertible debentures

Payroll, social charges and tax obligation

Payables related to facilities acquisitions

Deferred income taxes

Provision for lawsuits risk

Other non-current liabilities

TOTAL NON-CURRENT LIABILITIES

SHAREHOLDERS' EQUITY

Capital stock

Capital transaction

Capital res erve

Revaluation reserve

Profit reserves

Treasury shares

Valuation adjustments to shareholders' equity

Accumulated translation adjustments in subsi

Retained earnings

Attributable to controlling interest

Attributable to noncontrolling interest

TOTAL SHAREHOLDERS' EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS' EQ

The accompanying notes are an integral part

esults for 1Q12

M arch 31, 2012 De ce mber 31, 2011 M arch 3

838,313 666,375 3,1

4,226,873 4,574,702 5,

- -

429,565 347,863 1,1

136,040 10,589 1

443,724 466,402

6,074,515 6,065,931 9,

6,210,233 7,095,193 13,

1,283 1,283

- -

48,881 2,048

413,298 289,798

142,325 140,975 1

26,412 27,554

6,842,432 7,556,851 15,

21,506,247 21,506,247 21,

(10,127) (10,212)

373,366 985,944

100,100 101,556 1

1,440,799 1,440,799 1,

- (610,550)

in subs idiarie 126,972 127,071 1

idiaries (3,025,984) (2,877,033) (3,

117,535 - 1

20,628,908 20,663,822 20,

- - 1,

20,628,908 20,663,822 21,

UITY 33,545,855 34,286,604 47,

f the financial statements

Company

15

1, 2012 December 31, 2011

93,850 3,323,886

18,748 5,339,433

10,193 211,528

82,422 1,167,163

36,040 10,589

23,232 343,100

64,485 10,395,699

67,344 13,532,761

1,283 1,283

73,041 683,812

48,881 2,048

97,598 678,372

97,295 251,560

43,696 266,161

29,138 15,415,997

06,247 21,506,247

10,127) (10,212)

73,366 985,944

00,100 101,556

40,799 1,440,799

- (610,550)

26,972 127,071

25,984) (2,877,033)

17,535 -

28,908 20,663,822

22,538 935,366

51,446 21,599,188

45,069 47,410,884

Consolidated


16/18

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JBS S.A.

Statements of income for the three


NET SALE REVENUE

Cost of goods s old

GROSS INCOME

OPERATING INCOME (EXPENSE)

General and administrative expenses

Selling expenses

Financial expense, netEquity in earnings of subs idiaries

Other income (expenses ), net

NET INCOME BEFORE TAXES

Current income taxes

Deferred income taxes

NET INCOME OF THE PERIOD

ATTRIBUTABLE TO:

Controlling interest

Noncontrolling interest

Net income basic per thousand shares - in rea

The accompanying notes are an integral part of

esults for 1Q12

onths period ended March 31, 2012 and 2011

2012 2011

3,350,379 3,172,007

(2,451,641) (2,493,902)

898,738 678,105

(162,472) (145,423)

(327,025) (298,505)

(38,775) (303,081)

(130,962) 195,505

75 2,894

(659,159) (548,610)

239,579 129,495

750 748

(124,250) 16,725

(123,500) 17,473

116,079 146,968

is 39.16 59.17

the financial statements

Company

16

2012 2011

16,011,080 14,672,740

(14,357,175) (12,984,313)

1,653,905 1,688,427

(427,891) (418,917)

(816,404) (737,451)

(155,821) (351,130)

- -

(12,185) (8,769)

(1,412,301) (1,516,267)

241,604 172,160

16,643 (194,595)

(128,728) 112,360

(112,085) (82,235)

129,519 89,925

116,079 146,968

13,440 (57,043)

129,519 89,925

39.16 59.17

Consolidated


17/18

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JBS S.A.


Cash flow from operating activities

Net income of the period attributable to controlling in

Adjustments to reconcile loss to cash p rovided on o

. Depreciation and amortization

. Allowance for doubtful accounts

. Equity in earnings of s ubsidiaries

. Loss (gain) on assets sales

. Deferred income taxes

. Current and non-current financial charges

. Provision for lawsu its risk

. Impairment

Decrease (increase) in operating assets

Trade accounts receivable

Inventories

Recoverable taxes

Other current and non-current assets

Related party receivable

Biological assets

Increase (decrease) operating liabilitiesTrade accounts payable

Other current and non-current liabilities

Noncontrolling interest

Valuation adjustments to shareholders' equity in su

Net cash provided by (used in) operating activities

Cash flow from investing activities

Additions to property, plant and equipment and inta

Increase in investments in subsidiaries

Decrease in investments in subsidiaries

Proceeds received from termination agreement of I

Net effect of working capital o f acquired (merged) co

Net cash provided by (used in) investing activities

Cash flow from financing activities

Proceeds from loans and financings

Payments of loans and financings

Capital transactions

Shares acquisition of own emission

Net cash provided by (used in) financing activities

Effect of exchange variation on cash and cash equ

Variance in cash and cash equivalents

Cash and cas h equivalents at the beginning of the y

Cash and cash equivalents at the end of the period

The accompanying notes are an integral part of t

Statements of cash flows for the three

esults for 1Q12

2012 2011

terest 116,079 146,9

perating activities

105,084 97,2

- 1,1

130,962 (195,5

(75) (1,5

124,251 (16,7

(297,993) 86,5

1,350 2,1

-

179,658 120,2

43,934 33,6

(147,297) 44,5

(44,593) (76,0

(31,007) (46,0

(347,365) (87,4

-

167,155 (33,3

100,559 (217,4

-

bsidiaries -

(78,956) (261,9

gible assets (226,991) (104,3

- (552,3

871,887

alca JBS - 504,0

mpany -

644,896 (152,7

453,764 1,381,2

(1,453,397) (1,739,2

85

(2,028) (55,3

(1,001,576) (413,3

ivalents -

(435,636) (828,0

ar 3,612,867 3,000,6

3,177,231 2,172,6

e financial statements

onths period ended March 31, 2012 and 2011

Company

17

2012 2011

8 116,079 146,968

0 285,043 311,161

8 (2,086) 7,851

5) - -

5) 6,114 (1,863)

5) 128,728 (112,360)

7 (219,501) 164,524

8 (15) 2,692

- 4,144 -

6 318,506 518,973

7 210,061 31,632

6 (273,759) (105,371)

7) (225,116) (84,412)

9) 2,440 (90,819)

5) 44,691 68,268

- 33,374 (10,642)

2) (104,951) (430,175)

1) 21,961 (264,225)

- 13,440 (57,043)

- (77,156) (72,655)

5) (36,509) (496,469)

55) (291,965) (315,305)

56) - -

- - -

2 - 504,002

- 151 -

9) (291,814) 188,697

1 4,421,162 2,727,498

0) (4,211,525) (2,860,053)

- (263) -

8) (1,680) (55,398)

7) 207,694 (187,953)

- (16,737) (21,573)

1) (137,366) (517,298)

9 5,288,194 4,074,574

18 5,150,828 3,557,276

Consolidated


18/18

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DISCLAIMER

This release contains forward-looki

operating and financial results,

projections and, as such, are basthe future of the business and its co

forward-looking statements depe

regulations, competitive pressures,

other factors and risks disclosed in

without prior notice.

esults for 1Q12

g statements relating to the prospects of t

nd those related to growth prospects o

d exclusively on the expectations of JBSntinued access to capital to fund the Comp

nd, substantially, on changes in market

the performance of the Brazilian economy

BS filed disclosure documents and are, the

18

e business, estimates for

JBS. These are merely

anagement concerninganys business plan. Such

conditions, government

and the industry, among

efore, subject to change

1q12 earnings release

Documents