2q12 earnings release

7/30/2019 2Q12 Earnings Release

1/18

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JBS S.A. (Bovespa: JBSS3)*

Ne

Conso

Adj

2Q12 HIGHLIGHTS

JBS posted consolidated n

Consolidated EBITDA wasmargin was 5.5%.

JBS Mercosul was thean increase of 19.4% oR$630.3 million with an

JBS USA Chicken (Pilgbillion and EBITDA ofpresented in 2Q11.

Adjusted net Income inliabilities generated by gosells the investment thatR$169.5 million.

The Company ended tcorresponding to more th

1st SEMESTER, 12 (1S12) HI During the semester, net re

Consolidated EBITDA wasof the semester was 5.0%.

Adjusted net Income forliabilities generated by gmillion.

Strategic Events

Start up in the poultry iprocessing capacity of 1.1

Ramp up of the beef busi8,000 head/day.

Independent listing of Vigfor the Acquisition of JBS S

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

quarter of 2012 (2Q12). For the purpos

and June, 2011 (2Q11). The consolida

each business unit reports its results in t

integral part of the subsidiary JBS USA

quantitative data, such as volumes and

esults for 2Q12

So P

t Revenue increased 26% in 2Q12

idated EBITDA surpassed R$1.0 billio

usted Net Income of R$213 million

et revenue of R$18.5 billion, 26.3% higher t

R$1,012.8 million, an increase of 72.3% co

ighlight of the quarter reporting net revever 2Q11. EBITDA increased 47.3% over thEBITDA margin of 14.6%.

rims Pride Corporation PPC) postedUS$125.7 million in the period, reversi

the period was R$212.9 million excludinodwill (this deferred income tax is disbursgenerated goodwill). Reported consoli

e quarter with R$5.475 billion in cashn 110% of short-term debt.

HLIGHTSvenue totaled R$34.5 billion, 17.7% higher

$1,709.3 million in 1S12, which is 20.1% ab

he semester was R$453.2 million excludi

odwill. First half reported consolidated n

dustry in Brazil through the rental of Fmillion birds/day.

ess in Brazil adding new units with the ca

r S.A. through the conclusion of the Voluares in Exchange for Vigor Shares.

lobal leading producer of animal protein announces

e of analysis, this report considers the results for the qua

ed results of JBS are presented in Brazilian Real (R$) a

e currency of the country in which it operates. The o

and both results refer to the period of 13 weeks en

heads slaughtered, are not audited.

1

ulo, August 14th, 2012

n

an 2Q11.

pared to 2Q11. EBITDA

nue of R$4,317.7 million,e same period and was

net revenue of US$2.0g the negative result

deferred income taxd only if the company

ated net income was

and cash equivalent,

han 1S11.

ve 1S11. EBITDA margin

g deferred income tax

et income was R$285.6

angosul assets, with a

acity to process about

tary Public Tender Offer

today its results for the second

rter ended March, 2012 (1Q12)

nd when separately analyzed,

erations of JBS Australia are an

ed June 24, 2012 (2Q12). The


2/18

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ANALYSIS OF RESULTS BY BUSIAnalysis of the principal financi

Net RevenueJBS 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 %

EBITDA Margin (%)

Net sales (R$ billion) Net sales

EBITDA (R$ million) EBITDA (

JBS Mercosul JBS US

(Includin

4.0

4.

2Q11 3Q

3.6

3.9 3.8 3.8

4.3

2Q11 3Q11 4Q11 1Q12 2Q12

427.9 453.8 407.7508.6

630.311.8%11.6%

10.7%13.3%

14.6%

- 1 0 ,0 %

- 8 , 0 %

- 6 , 0 %

- 4 , 0 %

- 2 , 0 %

0 ,0 %

2 ,0 %

4 ,0 %

6 ,0 %

8 ,0 %

1 0 , 0 %

1 2 , 0 %

1 4 , 0 %

1 6 , 0 %

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

8 0 0

2Q11 3Q11 4Q11 1Q12 2Q12

44.7

18

1.1%4.

- 1 0 0

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

2Q11 3Q

Performance byBusiness Unit

esults for 2Q12

ESS UNITl indicators of JBS by Business Unit (in lo

2Q12 1Q12 %

4,266.9 4,078.8 4.6%

844.0 855.4 -1.3%

1,974.5 1,888.8 4.5%

4,317.7 3,827.4 12.8%

-9.1 -45.4 -

49.2 55.8 -11.9%

125.7 104.0 20.9%

630.3 508.6 23.9%

-0.2% -1.1% -

5.8% 6.5% -

6.4% 5.5% -

14.6% 13.3% -

(US$ bil lion) Net sales (US$ m il lion)

US$ mil lion) EBITDA (US$ million)

Australia)JBS USA

.2

4.5

4.14.3

11 4Q11 1Q12 2Q12

846.0 867.1923.1 855.4 844.0

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

2Q11 3Q11 4Q11 1Q12 2Q12

.1223.6

-45.4 -9.1

.4%5.0%

-1.1%-0.2%

- 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 %

1 0 , 0 %

1 2 , 0 %

1 4 , 0 %

1 6 , 0 %

11 4Q11 1Q12 2Q12

83.6 75.9 77.055.8 49.2

9.9% 8.8% 8.3%6.5% 5.8%

- 2 3 , 0 %

- 1 9 , 0 %

- 1 5 , 0 %

- 1 1 , 0 %

- 7 , 0 %

- 3 , 0 %

1 ,0 %

5 ,0 %

9 ,0 %

1 3 , 0 %

- 0 , 0 2 3

9 9 , 9 7 7

1 9 9 ,9 7 7

2Q11 3Q11 4Q11 1Q12 2Q12

2

al currency)

2Q11 %

,964.0 7.6%

845.8 -0.2%

,992.7 -0.9%

,615.3 19.4%

44.7 -

83.6 -41.2%

-47.6 -

427.9 47.3%

1.1% -

9.9% -

-2.4% -

11.8% -

Net sales (US$ billion)

EBITDA (US$ million)

JBS USA (PPC)

2.0 1.9 1.8 1.92.0

2Q11 3Q11 4Q11 1Q12 2Q12

-47.6 -31.422.6

104.0 125.7

-2.4% -1.7%1.2%

5.5% 6.4%

- 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

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

2Q11 3Q11 4Q11 1Q12 2Q12


3/18

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ANALYSIS OF CONSOLIDATED

Consolidated analysis of the pri

(1) Excluding the Parent Companys I

Number of Heads Processed an

* Not including chicken

R$ million

Net RevenueCost of Goods Sold

Gross 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 shareholdNet Income (Loss)

Adjusted Net Income (Loss)(1)

EBITDA

EBITDA Margin

Net Income (Loss) per share

Heads slaughtered (thousand)

Cattle

Hogs

Smalls*

Volume Sold (thousand tons)*

Domestic Market

Fresh and Chilled Beef

Processed Beef

Others

Exports


Processed Beef

Others

TOTAL

esults for 2Q12

RESULTS

cipal operational indicators of JBS

come and Social Contribution.

Sales Volume*

2Q12 1Q12

18.468,3 16.011,1 15,3(16.350,8) (14.357,2) 13,9

2.117,5 1.653,9 28,0

11,5% 10,3%

(932,4) (816,4) 14,2

(518,8) (427,9) 21,2

(389,4) (155,8) 149,9

22,0 (12,2)

299,0 241,6 23,8

(114,4) (112,1) 2,1

rs 15,1 13,4 12,2169,5 116,1 46,0

212,9 240,3 -11,4

1.012,8 696,5 45,4

5,5% 4,3%

0,06 0,04 52,1

2Q12 1Q12 %

4,083.8 3,717.9 9.8%

3,147.5 3,307.0 -4.8%

1,000.9 934.8 7.1%

1,723.7 1,706.1 1.0%

1,447.5 1,449.3 -0.1%

35.8 34.8 2.9%

240.4 222.0 8.3%

516.7 448.9 15.1%

479.9 418.2 14.8%

15.8 14.7 7.6%

21.0 16.1 30.9%

2,240.5 2,155.0 4.0%

3

2Q11 %

14.621,8 26,3%(13.202,3) 23,8%

1.419,5 49,2%

- 9,7% -

(754,7) 23,5%

(386,1) 34,4%

(590,9) -34,1%

- (5,5) -

(317,7) -

110,7 -

(26,2) -(180,8) -

(246,0) -

587,7 72,3%

- 4,0% -

(0,07) -

2Q11 %

3,884.6 5.1%

3,072.1 2.5%

839.6 11.3%

1,610.2 7.0%

1,348.8 7.3%

34.0 5.2%

227.4 5.7%

501.9 2.9%

450.3 6.6%

19.6 -19.5%

32.0 -34.4%

2,112.2 6.1%


4/18

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CONSOLIDATED RESULTS

Net Revenue

JBS consolidated net revenue in2Q11 when the net revenue was

in the Brazilian Beef Business, thethe real against the U.S. dollar inconsolidated results.

In 2Q12, approximately 76% of glCompany has operations and 24

Year to date (1S12) net revenue t

EBITDA

EBITDA was R$1,012.8 million inconsolidated performance wasof 47.3% over 2Q11, and also d

arising from these two business uUSA Beef unit. JBS consolidated E

Year to date consolidated EBITD1S11. EBITDA margin in first half of

Financial Results

Financial results were R$389.4 mill

variation in the period was R$6against the USD in the period. Odue to hedge positions at themanagement to minimize the eff

Net Income

Adjusted net Income in 2Q12generated by goodwill (this deinvestment that generated goodFor the first half of 2012, adjusteliabilities generated by goodwill.

Capital Expenditure (Capex)

Total capital expenditure of JBS ihigher than 1Q12. The main inveexpansion of beef processing cdistribution capacity, principally i

esults for 2Q12

2Q12 was R$18,468.3 million, an increaseR$14,621.8 million. This expansion was cau

revenue increase in the JBS USA Beef unithe period, all of which caused a positive

lobal sales were generated domestically icame from exports.

taled R$34.5 billion, 17.7% higher than the

Q12, an increase of 72.3% comparedue to the result achieved by JBS Mercose to the improvement presented by Pilg

nits was more than sufficient to offset theITDA margin was 5.5% in the quarter.

was R$1,709.3 million, which represents athe year was 5.0%.

ion in 2Q12, an improvement of 34.1% ov

9.2 million negative, driven by 10.9% dn the other hand, derivatives results wereompany. This result reflects the Compacts of currency fluctuations.

was R$212.9 million excluding deferreferred income tax is disbursed only ifill). Consolidated reported net income w

net Income was R$453.2 million excludiirst half reported consolidated net income

2Q12 in property, plant, and equipmenttments were in the start up of the chickepacity both in Brazil as well as in thethe U.S.

4

of 26.3% compared toed by the performance

and the devaluation offfect in the Companys

n the markets were the

same period last year.

o 2Q11. The improvedl, which posted growth

rims. The positive result

performance in the JBS

increase of 20.1% over

er 2Q11. Exchange rate

preciation of the Realpositive R$615.3 million,ys solid strategy of risk

income tax liabilitiesthe company sells thes R$169.5 million.

g deferred income taxwas R$285.6 million.

was R$403.1 million, 38%n operations and in theddition of storage and

*


5/18

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Indebtedness

The Company's gross debt incr

Brazilian Real against the US dvariation, gross debt remained s

JBS consolidated net debt to Egross debt, reflecting the effectthe last twelve months. Eliminreduced to less than 4.0x.

JBS Consolidated Indebtedness

(1) EBITDA LTM. U.S. dollar exchange r

R$ million

Gross debt

(+) Short Term Debt

(+) Long Term Debt(-) Cash and Equivalents

Net debt

Net debt/EBITDA

3.60

-100

100

300

500

700

900

1100

1300

1500

2Q11

. Leverage

Leverage

.

esults for 2Q12

ased 11.1% compared to 1Q12, due to

ollar, which was 10.9% in the same ptable.

BITDA LTM improved slightly in the quarof exchange rate variation, was offset bting the FX variation in the result, the

te of the last day of the period.

6/30/12

20,752.1 1

4,819.2

15,932.9 15,475.2

15,276.9 1

4.27x

4.04 4.004.30 4.27

3Q11 4Q11 1Q12 2Q12

EBITDA

5

the devaluation of the

riod. Excluding the FX

er. The increase in thean EBITDA increase in

leverage would have

3/31/12 Var.%

8,686.1 11.1%

5,018.7 -4.0%

3,667.3 16.6%5,150.8 6.3%

3,535.3 12.9%

4.30x

0

1

2

3

4


6/18

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Analysis of Consolidated Net

Converting the Company's tot

debt without the effects of excthe debt and revenues come

USD can be observed in the last

Cash Position

The Company ended the quartto more than 110% of short-term

The percentage of short-term d

Source: JBS

R$ million

Consolidated Net Debt in R$

Exchange Rate

Consolidated Net Debt in US$

23%

27

28

28

2Q12

1Q12

4Q11

3Q11

Short Term

ST / LT Debt Pr

esults for 2Q12

Debt in USD

l net debt from Real to U.S. Dollar to a

hange rate variations, considering thatrom JBS's overseas operations, a reduc

twelve months.

r with R$5.475 billion in cash or cash eqdebt, which demonstrates a comfortabl

bt in relation to total debt fell from 27% i

2Q11 3Q11 4Q11

12,164.1 13,654.4 13,584.0

1.5611 1.8544 1.8758

7,792.0 7,363.2 7,241.7

77%

73%

72%

72%

Long Term

file

6

alyze the evolution of

a significant portion oftion of 3.0% of debt in

ivalent, correspondinge liquidity.

n 1Q12 to 23% in 2Q12.

1Q12 2Q12

13,535.3 15,276.9

1.8221 2.0213

7,428.4 7,558.0


7/18

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ANALYSIS OF RESULTS BY BUSI

JBS USA Beef (including Australi

Net revenue for this business unThis result reflects an increasewith prices 7.1% higher. Comphigher export volumes.

Although EBITDA was negativethe 1Q12 number, which was nthe period due to the high pri

towards improving margins in trelation to 1Q12, a movement

relation to average selling priccan be perceived by the 4% resame period last year.

The Company believes in thebetween supply and demandyear. The administration keeps itprofitability of the operation an

Highlights (US GAAP)

Breakdown of Net Revenues

US$ million


Net Revenue

EBITDA

EBITDA margin %

Domestic Market

Net Revenue (US$ million)

Volume (tons)

Average Price (US$/Kg)

Exports


Volume (tons)


esults for 2Q12

ESS UNIT

),46% of JBS S.A. Net Revenue

it was US$4,266.9 million in 2Q12, outpef 4.3% in volume sold in the U.S. domered to 1Q12, revenue increased 4.6%,

S$9.1 million in 2Q12, there was an imprgative US$45.4 million. Margins remainee of raw materials. However, this result

e sector with the decrease of 4% in athat was more intensified in June. Anot

s in 2Q12 was the improvement in theduction in average weekly slaughter wh

recovery of margins in this sector throand improved flow of raw material ins focus on operating with low cost, withthe pursuit of tailor made customers /

2Q12 1Q12 %

2,027.3 1,960.3 3.4%

4,266.9 4,078.8 4.6%

-9.1 -45.4 -

-0.2% -1.1%

2Q12 1Q12 %

3,138.8 3,105.4 1.1%

833.7 881.3 -5.4%

3.76 3.52 6.8%

2Q12 1Q12 %

1,128.1 973.3 15.9%

286.7 249.4 15.0%

3.93 3.90 0.8%

7

forming 2Q11 by 7.6%.tic market, combinedas a consequence of

vement compared tounder pressure duringdemonstrates a trend

erage cattle prices iner significant factor in

industry dynamics thaten compared with the

ugh a better balancehe second half of themphasis on increasingarkets for each item.

2Q11 %

2,111.9 -4.0%

3,964.0 7.6%

44.7 -

1.1%

2Q11 %

2,811.8 11.6%

799.7 4.3%

3.52 7.1%

2Q11 %

1,152.2 -2.1%

291.3 -1.6%

3.96 -0.5%


8/18

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JBS USA Pork, 9% of JBS S.A. N

Net revenue in the pork busine

increase in the number of animprices especially in the export

the decrease in the number of

EBITDA was US$49.2 million in 2influenced by the reduction omaterial in the period.



US$ millionAnimals slaughtered (thousand

Net Revenue

EBITDA

EBITDA margin %

Domestic Market

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


Exports


Volume (thousand tons)


esults for 2Q12

t Revenue

ss for the quarter was US$844.0 million,

ls slaughtered year on year was offset barket. Compared to 1Q12, revenue re

nimals slaughtered resulting in reduced

Q12 with an EBITDA margin of 5.8%. Taverage selling prices in general due

2Q12 1Q12 %3,147.5 3,307.0 -4.8%

844.0 855.4 -1.3%

49.2 55.8 -11.9%

5.8% 6.5%

2Q12 1Q12 %

687.7 697.5 -1.4%287.6 292.3 -1.6%

2.39 2.39 0.2%

2Q12 1Q12 %

156.3 157.9 -1.0%

67.6 68.5 -1.3%

2.31 2.30 0.3%

8

0.2% below 2Q11. The

y lower average sellingduced by 1.3% due to

ales volume.

e quarterly result wasto oversupply of raw

2Q11 %3,072.1 2.5%

845.8 -0.2%

83.6 -41.2%

9.9%

2Q11 %

701.4 -1.9%279.9 2.7%

2.51 -4.6%

2Q11 %

144.4 8.2%

52.9 27.8%

2.73 -15.3%


9/18

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

Net revenue in the 2Q12 was US

the quarter was US$125.7 million

The results for the quarter reinfPPC, with an expansion of EBITprevious quarter, due to consis

income at PPC was US$69.4 milrestructuring that has been definancial expenses in 2Q12 com

sales expenses during the same

Over the past 60 days, there wa

the U.S. poultry industry whichbelieves that the industry has

production costs to selling price


US$ million

Net Revenue

EBITDA

EBITDA margin %

esults for 2Q12

Corporation, a US listed Company cont

$1,974.5 million, practically stable comp

, reversing the negative result of minus U

rced the trend towards the resumptionDA margin, which increased to 6.4% inent improvement in selling prices in the

lion in the period. It is also a highlight teloped at PPC, which can be observepared to 2Q11, besides the 14% reductio

period.

s a sharp rise in grain prices, bringing a c

hould be perceived mainly in 4Q12. Hthe instruments and will work to pa

, thus preserving the profitability of the b

2Q12 1Q12 %

1,974.5 1,888.8 4.5%

125.7 104.0 20.9%

6.4% 5.5%

9

olled by JBS USA), 21%

red to 2Q11. EBITDA in

$47.6 million in 2Q11.

of positive margins at2Q12 from 5.5% in thedomestic market. Net

e effectiveness of theby a 9% reduction in

n in administrative and

hallenging scenario for

wever, the Companyss on the increase in

usiness.

2Q11 %

1,992.7 -0.9%

-47.6 -

-2.4%


10/18

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

Net revenue at JBS Mercosulcomparison with 2Q11 and 12

number of cattle slaughtered c

EBITDA totaled R$630.3 million i

Compared to 1Q12, EBITDA inand reached 14.6% in the quacycle in Brazil and the Compan

synergies.

JBS Management remains confiincrease of availability of livesto

Highlights


R$ million


Net Revenue

EBITDA

EBITDA margin %

Domestic Market

Net Revenue (million R$)

Fresh and Chilled Product

Processed Items

Others

TOTAL



Processed ItemsOthers

TOTAL

Average Price (R$/Kg)


Processed Items

Others

esults for 2Q12

t Revenue

ame in at R$4,317.7 million in 2Q12, a.8% higher than 1Q12, principally due

mbined with higher sales volumes.

2Q12, an increase of 47.3% over the s

reased 23.9%. EBITDA margin at JBS Mrter. The result of this business unit refleys efforts to enhance operational effici

dent in the improvement of the cattle ck in the coming years.

2Q12 1Q12 %

2,056.6 1,757.6 17.0% 1,

4,317.7 3,827.4 12.8% 3,

630.3 508.6 23.9%

14.6% 13.3%

2Q12 1Q12 %

1,965.4 1,828.8 7.5% 1,

197.8 190.6 3.8%

585.9 559.1 4.8%

2,749.1 2,578.5 6.6% 2,

326.3 275.8 18.3%

35.8 34.8 2.9%240.4 222.0 8.3%

602.4 532.5 13.1%

6.02 6.63 -9.2%

5.53 5.48 0.9%

2.44 2.52 -3.2%

10

n increase of 19.4% into the increase in the

ame quarter last year.

rcosul was a highlightts an improved cattleencies and to capture

cle in Brazil and in the

2Q11 %

772.7 16.0%

615.3 19.4%

27.9 47.3%

11.8%

2Q11 %

86.1 16.6%

59.6 23.9%

57.4 28.1%

03.1 19.4%

69.2 21.2%

34.0 5.2%27.4 5.7%

30.6 13.5%

6.26 -3.8%

4.69 17.9%

2.01 21.4%


11/18

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


Exports

Net Revenue (million R$)


Processed Beef

Others

TOTAL



Processed Beef

Others

TOTAL

Average Price (R$/Kg)


Processed Beef

Others

esults for 2Q12

t Revenues

2Q12 1Q12 %

1,025.6 817.9 25.4%

190.4 173.7 9.6%

352.6 257.3 37.0%

1,568.6 1,248.9 25.6% 1,

125.6 100.3 25.3%

15.8 14.7 7.6%

21.0 16.1 30.9%

162.4 131.0 24.0%

8.17 8.16 0.1%

12.06 11.84 1.8%

16.78 16.03 4.7%

11

2Q11 %

822.1 24.7%

189.6 0.4%

300.5 17.3%

12.2 19.5%

106.1 18.3%

19.6 -19.5%

32.0 -34.4%

157.8 2.9%

7.75 5.4%

9.67 24.7%

9.38 78.9%


12/18

R

TABLES AND CHARTS

Graph I - JBS Consolidated Exp

Source: JBS

Table I - Breakdown of Producti

Source: JBS

E.U 6.1%

Canada 4.8%

Chile 3.6%

Taiwan 2.1%

Others 15.1%

South Korea 6.2%

Venezuela 1.9%

2Q12 (%)

Raw material (livestock)

Processing (including

ingredients and packaging)

Labor Cost

esults for 2Q12

rts Distribution 1S12

n Costs by Business Unit (%)

US$4,387million

M

Russia 9.3%

Africa

onsolidated JBS Mercosul USA Beef

80.4% 85.8% 87.6%

10.3% 7.9% 5.2%

9.3% 6.4% 7.2%

12

xico 15.5%

Japan 11.7%

China, Hong Kong andVietnam 14.6%

nd Middle East 9.1%

USA Pork USA Chicken

83.7% 56.2%

7.2% 26.3%

9.1% 17.4%


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To Contact JBS:

Av

esults for 2Q12

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) 3144-4447E-mail: [email protected]

www.jbs.com.br/ir

13


14/18

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CONSOLI

JBS S.A.

Balance sheets

(In thousands of Reais)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Trade accounts receivable, net

Inventories

Biological assets

Recoverable taxes

Prepaid expenses

Other current assets

TOTAL CURRENT ASSETS

NON-CURRENT ASSETS

Long-term assets

Credits with related parties

Biological assetsRecoverable taxes

Judicial deposits and others

Total long-term assets

Investments in subs idiaries and in ass ociat

Property, plant and equipment, net

Intangible as sets, net

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

The accompanying notes are an integral pa

esults for 2Q12

ATED FINANCIAL STATEMENTS JBS S.

June 30, 2012December 31,

2011June

3,955,537 3,612,867

2,249,386 1,883,093

1,912,149 1,544,261

- -

1,416,568 1,330,609

17,165 8,148

269,497 256,225

9,820,302 8,635,203 1

622,997 88,505

- -558,281 562,027

183,843 104,207

1,365,121 754,739

es 5,991,761 7,561,574

8,240,672 7,803,582 1

9,530,666 9,531,506 1

23,763,099 24,896,662 2

25,128,220 25,651,401 2

34,948,522 34,286,604 4

rt of the financial s tatements

Company

14

.

30, 2012December 31,

2011

,475,236 5,288,194

,045,674 4,679,846

,333,557 5,405,705

253,007 209,543

,787,350 1,690,311

134,535 131,033

521,268 526,649

,550,627 17,931,281

716,870 552,197

33,700 -622,733 626,126

602,301 389,947

,975,604 1,568,270

260,070 -

,661,692 15,378,714

,737,883 12,532,619

,659,645 27,911,333

,635,249 29,479,603

,185,876 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 acquis itions

Other current liabilities

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Loans and financings

Convertible debentures

Payroll, social charges and tax obligation

Payables related to facilities acquis itions

Deferred income taxes

Provision for lawsuits risk

Other non-current liabilities

TOTAL NON-CURRENT LIABILITIES

SHAREHOLDERS' EQUITY

Capital stock

Capital transaction

Capital reserve

Revaluation reserve

Profit reserves

Treasury shares

Valuation adjustments to shareholders' equity i

Accumulated translation adjus tments in subsidi

Retained earnings

Attributable to controlling interest

Attributable to noncontrolling interest

TOTAL SHAREHOLDERS' EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS' EQUI

The accompanying notes are an integral part of

esults for 2Q12

June 30, 2012 December 31,2011

Ju

885,636 666,375

4,177,140 4,574,702

- -

437,963 347,863

131,445 10,589

555,859 466,402

6,188,043 6,065,931

7,707,714 7,095,193

1,280 1,283

122,504 -

52,094 2,048

456,226 289,798

144,994 140,975

15,348 27,554

8,500,160 7,556,851

21,506,247 21,506,247

79,064 (10,212)

373,366 985,944

99,205 101,556

1,440,799 1,440,799

(938,013) (610,550)

subsidiaries 108,581 127,071

aries (2,696,844) (2,877,033)

287,914 -

20,260,319 20,663,822

- -

20,260,319 20,663,822

ITY 34,948,522 34,286,604

the financial s tatements

Company

15

ne 30, 2012 December 31,2011

3,513,481 3,323,886

4,819,190 5,339,433

10,576 211,528

1,246,611 1,167,163

131,445 10,589

515,350 343,100

10,236,653 10,395,699

15,932,936 13,532,761

1,280 1,283

583,997 683,812

52,094 2,048

832,121 678,372

197,977 251,560

288,194 266,161

17,888,599 15,415,997

21,506,247 21,506,247

79,064 (10,212)

373,366 985,944

99,205 101,556

1,440,799 1,440,799

(938,013) (610,550)

108,581 127,071

(2,696,844) (2,877,033)

287,914 -

20,260,319 20,663,822

800,305 935,366

21,060,624 21,599,188

49,185,876 47,410,884

Consolidated


16/18

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JBS S.A.

Statements of income for the three m


NET SALE REVENUE

Cost of goods sold

GROSS INCOME

OPERATING INCOME (EXPENSE)

General and adm inistrative expenses

Selling expenses

Financial expense, ne t

Equity in earnings of subs idiaries

Other income (expenses ), net

NET INCOME (LOSS) BEFORE TAXES

Current income taxes

Deferred income taxes

NET INCOME (LOSS) OF THE PERIOD

ATTRIBUTABLE TO:

Controlling interest

Noncontrolling interest

Net income (loss) basic per thousand shares - i

Net income (loss) diluted per thousand shares

The accompanying notes are an integral part of t

esults for 2Q12

nths period ended June 30, 2012 and 2011

2012 2011

3,961,554 3,257,335

(2,897,927) (2,464,197)

1,063,627 793,138

(220,255) (142,496)

(353,286) (312,700)

(546,308) (536,110)

261,296 (49,580)

7,339 1,039

(851,214) (1,039,847)

212,413 (246,709)

459 686

(43,388) 65,267

(42,929) 65,953

169,484 (180,756)

in reais 59.55 (73.00)

in reais 59.55 (60.86)

e financial statements

Company

16

2012 2011

18,468,291 14,621,805

(16,350,838) (13,202,332)

2,117,453 1,419,473

(518,756) (386,065)

(932,374) (754,724)

(389,366) (590,894)

- -

22,048 (5,490)

(1,818,448) (1,737,173)

299,005 (317,700)

(64,060) (101,077)

(50,387) 211,806

(114,447) 110,729

184,558 (206,971)

169,484 (180,756)

15,074 (26,215)

184,558 (206,971)

59.55 (73.00)

59.55 (60.86)

Consolidated


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JBS S.A.


Cash flow from operating activities

Net income (loss) of the period attributable to contro

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 receivableInventories

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

Net effect of Vigor deconsolidation

Decrease in investments in subsidiaries

Net effect of working capital of 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 2Q12

2012 2011

lling interest 169,484 (180,7

perating activities

107,162 114,4

(2,633) 3,7

(261,296) 49,5

(7,339) (2,0

43,388 (65,2

689,955 146,8

2,669 1,3

-

741,390 67,8

(363,974) 84,7(220,591) (43,0

(17,522) (43,4

(45,635) (17,6

(6,618) (138,9

-

37,144 52,4

268,805 185,8

-

bsidiaries -

392,999 147,8

gible assets (282,687) (170,5

-

14,618 1,391,8

mpany - 7

(268,069) 1,222,0

2,434,131 2,097,0

(1,780,881) (2,250,6

450

(324) (44,0

653,376 (197,6

ivalents -

778,306 1,172,2

ar 3,177,231 2,172,6

3,955,537 3,344,8

e financial statements

onths period ended June 30, 2012 and 2011

Company

17

2012 2011

56) 169,484 (180,756)

2 318,234 310,186

9 446 1,698

0 - -

1) (4,471) 5,931

7) 50,387 (211,806)

2 486,294 39,085

7 3,085 13,355

- 3,968 -

6 1,027,427 (22,307)

0 (466,601) (125,555)9) (496,041) (227,729)

2) (5,005) (81,021)

12) (36,551) (48,654)

17) (159,307) (126,298)

- (99,946) (109,428)

0 233,652 290,631

0 73,950 120,598

- 15,074 (26,215)

- (3,824) (32,256)

6 82,828 (388,234)

8) (403,060) (277,118)

- (211,856) -

53 - -

18 - -

3 (614,916) (277,118)

2 6,048,442 6,358,939

6) (5,284,937) (4,204,965)

- (7,070) -

19) (324) (44,019)

3) 756,111 2,109,955

- 100,385 (41,697)

56 324,408 1,402,906

18 5,150,828 3,557,276

4 5,475,236 4,960,182

Consolidated


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DISCLAIMER

This release contains forward-looki

operating and financial results,

projections and, as such, are bas

the 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 2Q12

g statements relating to the prospects of t

nd those related to growth prospects o

d exclusively on the expectations of JBS

ntinued 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 concerning

anys business plan. Such

conditions, government

and the industry, among

efore, subject to change

2q12 earnings release

Documents