2q07 conference call presentation

7/30/2019 2Q07 Conference Call Presentation

1/14

Conference Call

Results 2Q07A u g u s t 1 6 , 2 0 0 7


2/14

Presenters

Andr Gustavo Menezes

Investor Relations Manager

1

Jos Paulo MacedoDirector

Joesley Mendona Batista

CEO


3/14

We continued with our strategy of growing slaughtering capacity, increasingsales, focusing on cost reductions, efficiencies in yield/internal processes andadding value through the optimization of the sales mix in each market;

Higher cattle acquisition costs, which is being handled by the Companyscapacity to realign businesses and by market dynamics;

Inauguration of an industrial plant for the production of beef jerky located inSanto Antonio da Posse, state of So Paulo;

Start-up of operations in the units of Tefilo Otoni, Minas Gerais, Brasil;Pontevedra and Berazategui, Argentina;

Acquisition of a slaughtering plant in Maring, Paran, Brasil;

Acquisition of a cattle confinement unit in the state of So Paulo with an annualcapacity for 150,000 animals;

We continued to invest in the expansion of the slaughtering capacity of ourplants in Brazil;

As of the next Extraordinary Shareholders Meeting, the Investor RelationsDepartment will become independent from the Financial Department.

2

Period Overview


4/14

Acquisition of Swift Foods Company, making JBS the worlds largestbeef producer;

Capital increase and entrance of BNDESPar as a shareholder of JBS;

Important part of the adjustment has already been made through thecapital structure for the acquisition, reducing Swifts net debtconsiderably;

Opportunity to add value through the improvement of Swiftsoperational results;

New management is already implementing a series of actions;

We continue confident on the recovery of Swifts operational results.

3

Subsequent Events


5/14

Quarterly Slaughtering 000 Heads of CattleQuarterly Slaughtering 000 Heads of Cattle

701760

596530

724809745758831

936

830817

947886

1Q 2Q 3Q 4Q

2004 2005 2006 2007

Cattle Slaughtering 000 Heads of CattleCattle Slaughtering 000 Heads of Cattle

1833.41647.4

886.4947829.9

2Q06 2Q07 1Q07 1H06 1H07

14.1%

11.3%

6.8%

Slaughtering Volumes

4


6/14

5

Total Net Revenue (R$ million)

1821.9

1086.11171.2935.8

2257.4

2Q06 2Q07 1Q07 1H06 1H07

25.2%

23.9%

Total Volume (000 tons)

496.5

292.7322.2252.4

614.9

2Q06 2Q07 1Q07 1H06 1H07

27.6%

23.8%

Average Sales Price (R$/Kg)

3.673.713.643.71 3.67

2Q06 2Q07 1Q07 1H06 1H07

-1.9% 0.0%-2.0%

10.1%

7.8%

Results 2Q07


7/14

6

Net Revenue Distribution Total

41.4%42.4%41.7%39.4% 42.0%

58%58.6557.6%58.3%60.6%

2Q06 2Q07 1Q07 1H06 1H07

Domestic Market Exports

Net Revenue Distribution

Net Revenue Distribution Domestic Market

Net Revenue Distribution Exports

67.4%67.9%67.8%65.3% 67.8%

14.3%14.6%14.1% 15.5%17.1%17.8%17.1%17.5%18.2%17.7%

2Q06 2Q07 1Q07 1H06 1H07

Fresh Beef Processed Beef Others

70.6%69.7%71.1%76.1% 70.4%

29.6%30.3%28.9% 29.4%23.9%

2Q06 2Q07 1Q07 1H06 1H07

Fresh Beef Processed Beef


8/14

7

Results Domestic Market

Net Revenue Domestic Market (R$ million)

753.4

460.2487.9368.8

948.1

2Q06 2Q07 1Q07 1H06 1H07

32.3%25.8%

Volume Domestic Market (000 tons)

329.8

189.2210.0161.9

399.2

2Q06 2Q07 1Q07 1H06 1H07

29.7%

21.0%

Average Sales Price Domestic Market (R$/Kg)

2.282.432.322.28 2.38

2Q06 2Q07 1Q07 1H06 1H07

2.0% 4.0%-4.5%

11.0%

6.0%


9/14

8

Net Revenue Exports (R$ million)

Volume Exports (000 tons)

166.7

103.6112.290.5

215.7

2Q06 2Q07 1Q07 1H06 1H07

23.9%

29.4%

Average Sales Price Exports (per kilogram)

2.972.92

6.04

3.072.86

6.096.26 6.076.41

2.87

2Q06

(R$)

2Q07

(R$)

2Q06

(US$)

2Q07

(US$)

1Q07

(R$)

1Q07

(US$)

1H06

(R$)

1H07

(R$)

1H06

(US$)

1H07

(US$)

-2.7%

7.3%

-5.3%1.5%

1,068.5

626.0683.3567.0

1,309.2

2Q06 2Q07 1Q07 1H06 1H07

20.5%

22.5%

9.2%

8.3%

0.8%

7.2%

Results Exports


10/14

9

Export Destinations

Source : JBS

Exports Destinations 2Q07Exports Destinations 2Q07

United

Kingdom12%

Holland11%

Russia10%

Italy9%

Others29%

Spain3%

HongKong

9%

Egypt

4%

USA9%

Germany4%

United

Kingdom11%

Russia

10%

Holland

8%

Italy

8%

USA

7%Egypt

7%

Others

29%

Saudi

Arabia5%Hong Kong

5%

Bulgaria

5%

Germany

5%

Exports Destinations 2Q06Exports Destinations 2Q06

Source: JBS


11/14

10

EBITDA and EBITDA Margin

2.3x2.5x

3.6x

3.1x

2.6x

2.8x

2.2x

2002 2003 2004 2005 2006 1Q07 2Q07

Net Debt/EBITDANet Debt/EBITDAEBITDA and EBITDA MarginEBITDA and EBITDA Margin

321.4

260.2

156.2165.2

139.6

14.2%14.4%

14.3%14.1%

14.9%

2Q06 2Q07 1Q07 1H06 1H07

EBITDA Margin (%)

18.3%

23.5%


12/14

During the quarter, a total of R$112.7 million

were invested on the following projects

CAPEXCAPEX

11

Increase of the production capacity of its processed beef plant located inAndradina, So Paulo, from 30 tons to 100 tons per day;

Increase of the production capacity of its plant located in Barra do Garas,Mato Grosso from 1,300 to 2,500 head of cattle slaughtered and deboned perday;

Increase of the production capacity of its plant located in Campo Grande, MatoGrosso do Sul from 1,300 to 3,000 head of cattle slaughtered and deboned per

day;

Increase of the production capacity of its plant located in Vilhena, Rondnia,from 900 to 2,200 head of cattle slaughtered and deboned per day;

Conclusion of a beef jerky production plant in Santo Antnio da Posse, So

Paulo, which was opened in June, with production capacity for 250 tons permonth;

Increase of the production capacity of its plant located in Barretos, So Paulofrom 1,600 to 2,500 head of cattle slaughtered and deboned per day;

Other investments such as acquisition of new equipment and maintenance ofthe Companys facilities;


13/14

Disclaimer

12

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 involverisks, 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 arebeyond 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.


14/14

Thank You

13

2q07 conference call presentation

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