1q13 presentation

7/30/2019 1Q13 Presentation

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JBS S.A.1Q13 Presentation


2/22

JBS S.A.


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3PAGE

Disclaimer

This release contains forward-looking statements relating to the prospects of the business,

estimates for operating and financial results, and those related to growth prospects of JBS.These are merely projections and, as such, are based exclusively on the expectations ofJBS management concerning the future of the business and its continued access to capitalto fund the Companys business plan. Such forward-looking statements depend,substantially, on changes in market conditions, government regulations, competitivepressures, the performance of the Brazilian economy and the industry, among other factorsand risks disclosed in JBS filed disclosure documents and are, therefore, subject to changewithout prior notice.


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4PAGE

JBS S.A.

JBS posted consolidated net revenue of R$19.5 billion, an increase of R$3.5 billion, 22% higher than 1Q12

EBITDA reached R$879.4 million, 26.3% above 1Q12

Adjusted net income for 1Q13 came in at R$374.5 million

Leverage (net debt / EBITDA) at the end of the period was 3.4x

Operating Cash flow Generation of R$58.6 million

1Q13 at a Glance

Acquisitions of XL Foods in Canada and Agrovneto in Brazil with cash outlay of R$271.8 million

JBS launches a campaign around the Friboi brand in Brazil highlighting quality, sustainability andfood safety


5/22

5PAGE

696.5

879.4

4.4 4.5

-12.0

8.0

0.0

200.0

400.0

600.0800.0

1000.0

1200.0

1400.0

1600.0

1800.0

2000.0

1Q12 1Q13

16.0

19.5

1Q12 1Q13

22%26%

240.3

374.5

-120.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

1Q12 1Q13

1Q13 Highlights

Net Revenue (R$ billion) Net Income* (R$ million)EBITDA (R$ million)

*Adjusted (excluding deferred income tax liabilities due to goodwill at the parent Company).

56%


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696.5

1,012.8

1,378.8

1,170.9

879.4

4,45.5

7.1

5.44.5

-12.0

8.0

0.0

200.0

400.0

600.0

800.0

1000.01200.0

1400.0

1600.0

1800.0

1Q12 2Q12 3Q12 4Q12 1Q13

16,011.1

18,468.319,366.6

21,850.7

19,527.6

1Q12 2Q12 3Q12 4Q12 1Q13

12.8%-10.6%

15.3% 4.9%

-15.1%-24.9%

45.4% 36.1%

JBS Consolidated Results 1Q13

Source: JBS

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

EBITDA Margin (%)


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7PAGE

Performance by Business Unit

Source: JBS

Quarterly Analysis

EBITDA Margin (%)

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)

JBS Mercosul JBS USA

(Including Australia and Canada)

JBS USA JBS USA (PPC)

1.9 2.02.1 2.2 2.0

1Q12 2Q12 3Q12 4Q12 1Q13

4.14.3 4.3

4.9

4.3

1Q12 2Q12 3Q12 4Q12 1Q13

104.0

125.7

105.6 67.4 117.7

5.5% 6.4% 5.1%3.1%

5.8%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

0

100

200

300

400

500

1Q12 2Q12 3Q12 4Q12 1Q13

508.6

630.3 665.6 664.8

561.7

13.3% 14.6% 14.5%12.6% 11.3%

-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%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1Q12 2Q12 3Q12 4Q12 1Q13

3.8

4.34.6

5.35.0

1Q12 2Q12 3Q12 4Q12 1Q13

-45,4 -9,1

175,1

103.3

-25.1

-1.1% -0.2%

4.1%2.1%

-0.6%

-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

0.0

100.0

200.0

300.0

400.0

500.0

1Q12 2Q12 3Q12 4Q12 1Q13

855.4 844.0 846.1

955.5842.0

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

1Q12 2Q12 3Q12 4Q12 1Q13

55.8 49.240.4 42.7

46.8

6.5% 5.8% 4.8% 4.5% 5.6%

-23.0%

-19.0%

-15.0%

-11.0%

-7.0%

-3.0%

1.0%

5.0%

9.0%

13.0%

0.0

100.0

200.0

1Q12 2Q12 3Q12 4Q12 1Q13


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8PAGE

3.8

4.34.6

5.35.0

1Q12 2Q12 3Q12 4Q12 1Q13

Source: JBS

JBS Mercosul


Net revenue at JBS Mercosul was R$4,969.6 million in the quarter,

29.8% higher than 1Q12, due to the increase of 25.8% in volume of

livestock processed in the period. Regardless of the increase in sales

volume, sales prices increased in the period both domestically and in

export market, reflecting strong demand in emerging economies.

EBITDA totaled R$561.7 million in the quarter, an increase of 10.4%

over 1Q12. The EBITDA margin was 11.3%. This business unit

presented a slight increase in selling expenses due to the marketing

campaign to promote the Friboi brand in Brazil.

26%

% Net Revenue JBS S

Net Revenue (R$ billion)

EBITDA (R$ million)

EBITDA Margin (%)

508.6

630.3 665.6 664.8

561.7

13.3% 14.6% 14.5%12.6% 11.3%

-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%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1Q12 2Q12 3Q12 4Q12 1Q13

29.8%


9/22

9PAGESource: JBS

JBS USA Beef (including Australia and Canada)


Net revenue for this business unit in the quarter was US$4,315.1million, outperforming 1Q12 by 5.8%, due to the increase in sales pricesboth in the domestic market and exports, besides the commencement ofJBS operations in Canada, as a result of the acquisition of XL Foodsassets. Compared to 4Q12 net revenues decreased 11.1%, principallydue to the seasonality of the period.

EBITDA at this business unit was negative at US$25.1 million, mainlyimpacted by the pressure in the cost of raw material, due to the loweravailability of livestock for slaughter. EBITDA margin was -0.6%.

The Company believes in the improvement of the industrys marginsthrough the recovery of sales prices and a better balance betweensupply and demand, as well as the seasonal increase in the demand forbeef and in the supply of livestock during the summer. JBS management

maintains its focus on a low cost operation, with emphasis on increasedprofitability per animal processed and improved sales mix.

Net Revenue (US$ billion)

EBITDA (US$ million)

EBITDA Margin (%)

% Net Revenue JBS S

44%

5.8%

4.14.3 4.3

4.9

4.3

1Q12 2Q12 3Q12 4Q12 1Q13

-45,4 -9,1

175,1

103.3

-25.1

-1.1% -0.2%

4.1%2.1%

-0.6%

-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

0.0

100.0

200.0

300.0

400.0

500.0

1Q12 2Q12 3Q12 4Q12 1Q13


10/22

10PAGESource: JBS

JBS USA Pork


Net revenue in the pork business for the quarter totaled

US$842.0 million, a decrease of 1.6% year on year. This result is

due to the decline in export volume compared to 1Q12. In

comparison to 4Q12, net revenue decreased 11.9% due to the

seasonality of the period.

EBITDA totaled US$46.8 million in 1Q13, a decrease of 16.1%

compared to 1Q12, with EBITDA margin at 5.6%. The decline in

EBITDA was due to the decreased exports and supply and demand

imbalance domestically during the first quarter of 2013. In

comparison to 4Q12, there was an increase of 9.6%.

Net Revenue (US$ million)


EBITDA Margin (%)

% Net Revenue JBS S

9%

-1.6%

855.4 844.0 846.1

955.5842.0

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

1Q12 2Q12 3Q12 4Q12 1Q13

55.8 49.240.4 42.7 46.8

6.5% 5.8% 4.8% 4.5% 5.6%

-23.0%

-19.0%

-15.0%

-11.0%

-7.0%

-3.0%

1.0%

5.0%

9.0%

13.0%

0.0

100.0

200.0

1Q12 2Q12 3Q12 4Q12 1Q13


11/22

11PAGESource: JBS

JBS USA Poultry (Pilgrims Pride Corporation)


Net revenue in the quarter for this business unit was US$2,036.9million, 7.8% higher than the same period in 2012, due to the increasein prices of 8.3% and 15.8% in the U.S. and in Mexico, respectively.The total volume sold decreased 1.4% in the period.

Adjusted EBITDA in 1Q13 was US$117.7 million, 13.2% above1Q12. This EBITDA improvement was possible thanks to the rising

prices of chicken cuts which more than offset an increase of U$141.0million in grain costs in the period. In addition, the improvement inGeneral and Administrative (G&A) expenses - reduction of 2.8% over4Q12, contributed to strengthen results.

The change in sales mix, productivity gains and the reduction inoperating costs were essential to optimize the result for the period.

Net Revenue (US$ billion)


EBITDA Margin (%)

% Net Revenue JBS S

21%

7.8%

1.9 2.02.1 2.2 2.0

1Q12 2Q12 3Q12 4Q12 1Q13

104.0125.7

105.667.4

117.7

5.5% 6.4% 5.1%3.1%

5.8%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

0

100

200

300

400

500

1Q12 2Q12 3Q12 4Q12 1Q13


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12PAGE

China, Hong Kong andVietnan 18.4%

Mexico 14.2%

Japan 8.2%

Africa and Middle East 7.9%

Venezuela 7.0%Russia 5.7%

South Korea 5.3%

E.U. 5.2%

Canada 3.4%

Chile 3.0%

Taiwan 1.8%

Others 19.9%

JBS Consolidated Exports Distribution in 1Q13

Source: JBS

Approximately US$2.6 billion, an increase of 27.8% in relation to 1Q12

1Q13

US$2,607.6million


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13PAGESource: USDA 2012 (Estimated)*Buffaloes / **Excluding Brazilian exports

Global Protein Trade Largest ExportersJBS is present in the main exporter markets

Canada 4.0%

New Zealand 6.2%

Mercosul** 9.3%

Others 14.7%

USA 13.4%

Brazil 18.4%

India* 17.0%

Australia 17.0%

Chicken Exports

Beef Exports

Pork Exports

Turkey 2.8%

Thailand 5.3%

China 4.1%

E.U. 10.8%

Others 9.4%

Brazil 34.8%

USA 32.7%

Chile 2.5%

Brazil 9.0%

China 3.2%

Canada 17.0%

Others 4.4%

USA 33.4%

E.U. 30.5%


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14PAGE

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

2007 2008 2009 2010 2011 2012 1Q12 1Q13

1.9%

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

7,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2007 2008 2009 2010 2011 2012 1Q12 1Q13

-1.0%

7.7%

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

2007 2008 2009 2010 2011 2012 1Q12 1Q13

33.9%

-5.6%

6.7%

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


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15PAGE

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2007 2008 2009 2010 2011 2012 1Q12 1Q13

12.0%

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

2007 2008 2009 2010 2011 2012 1Q12 1Q13

1.3%

2.7%

-7.5%

Source: USDA & Secex

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

Chicken Exports Average Price (US$/Ton)

Chicken Exports Brazil vs US


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16PAGE

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

2007 2008 2009 2010 2011 2012 1Q12 1Q13

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

2007 2008 2009 2010 2011 2012 1Q12 1Q13

-0.2%

-18.5%

0.4%

Source: USDA & Secex

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

Pork Exports Average Price (US$/Ton)

Pork Exports US vs Brazil


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17PAGE

Events Subsequent to March 31, 2013

Re-tap of $ 275.0 million in notes due 2023 at a yield of 6.25% per annum (Re-tap of Notes due in 2023). JBS intends to use the net proceeds from this offering to extend its debt maturity profile by refinancinga portion of its outstanding short-term debt and for general corporate purposes.

Brazilian Anti-trust Authority (CADE) unanimously approved 12 acquisitions and leases made byJBS. All production units incorporated by JBS during the period 2009/2012 in Brazil will continue to beadministered by the Company without any restrictions.

JBS announced the acquisition of Ana Rech pork plant in Rio Grande do Sul, Brazil.JBS announced the acquisition of Ana Rech pork plant in RS, Brazil, the biological assets and the

pending real estate denominated Granja Andr da Rocha, situated in the municipality of Nova Prata,Rio Grande do SulJBS shall pay BRF subject to regulatory approval R$ 200 million reais for the total Assets. Price isto be paid in 50 (fifty) monthly and consecutive installments, the first installment falling due 6 (six)months after the signature date of the definitive agreement of the sale.

Completion of the purchase of the operations of XL Foods in the United States. 01 abattoir in Omaha (Nebraska), with capacity to process 1,100 head / day and another in Nampa

(Idaho), with capacity to process 1,100 head / day. The facility in Nampa is idled and the companyhas no immediate plans to reopen it.


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18PAGE

Promotion of Friboi Brand in Brazil

The Friboi Marketing Campaign has as goals:

Present to its costumers the quality of JBS products

and production process in an consumer friendly manner.

Demonstrate JBS attention throughout the supplychain, promoting sustainability.

Fonte: JBS


19/22

Debt Profile


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20PAGE

Debt Profile

JBS net debt to EBITDA was 3.4x in the 1Q13, substantially lower than 1Q12.

In January 2013, JBS issued US$500.0 million in bonds maturing 2023, with a yield of 6.50% per annum. This emission represented animprovement of JBS debt profile and the reduction of the cost of consolidated debt.

In April 2013, the Company reopened the Notes maturing 2023 with a yield of 6.25% per annum, raising US$275.0 million in addition to thefirst issue.

Leverage ST / LT Debt Profile

. Leverage EBITDA (R$ million) Short Term Long Term

Source: JBS

4.3 4.3

3.73.4 3.4

-1

0

1

2

3

4

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1Q12 2Q12 3Q12 4Q12 1Q13

28%

30%

27%

23%

27%

72%

70%

73%

77%

73%

1Q13

4Q12

3Q12

2Q12

1Q12


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21PAGE

Breakdown by Company Bonds / Others

JBS S.A.

59%

Subsidiaries

41%1Q13

Bonds

44%

Others

56%1Q13

*Average costs and maturity.

Breakdown by Currency. Average Cost and Maturity

Debt Profile

78%

22%

USD

R$ 8.0% annum 3.6 years

6.95% annum 4.7 years

At the end of the period 78% of JBS consolidated debt was denominated in American dollar, with an average cost of 6.95% perannum and

an average maturity of 4.6 years.

The proportion of debt denominated in reais, 22% of consolidated debt, present an average cost of 8.0% per annum and average maturity

of 3.6 years.


22/22

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.

1q13 presentation

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