4q11 conference call presentation

7/30/2019 4Q11 Conference Call Presentation

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JBS S.A.

Results Presentation

2011 and 4Q11


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JBS S.A.


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3PAGE

JBS Ranking

3 Geographic andmarket segmentdiversification

1 Market Leader

4 Well-recognizedbrands

2 Track Recordof successfulacquisitions

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 quality

3 Geographic andmarket segmentdiversification

1 Market Leader

4 Well-recognizedbrands

2 Track Record ofsuccessfulacquisitions

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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2011 and 4Q11 Highlights


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6PAGE

JBS USA Beef, including Australia, presented revenue of US$16.5 billion in the year, an increase of 25.6% over 2010. The EBIT DAwas US$739.1 million, 11.4% higher than 2010.

JBS USA Pork business unit net revenue totaled US$3.5 billion, 17.5% higher than 2010. The EBITDA was US$338.2 million,22.2% higher when compared to the previous year.

JBS Mercosul posted net revenue of R$14.9 billion, an increase of 11.9% year over year. The EBITDA increased 23.9% over thesame period and was R$1.6 billion.

JBS generated net cash from operating activities in 2011 of R$606.5 million.

EBITDA was R$3.15 billion, a decrease of 16.3% over 2010, due to the negative result from Pilgrims Pride. The EBITDA marginwas 5.1%.

JBS posted consolidated net revenue of R$61.8 million, 13% higher than 2010.

2011 Highlights

The Company ended the quarter with R$5.3 billion in cash or cash equivalent, equivalent to 100% short-term debt.

The Indebtedness level remained stable at 3.0x, excluding PPC.

The loss in the period was R$75.5 million, caused by Pilgrims Pride (PPC) that represented US$495.7 million in 2011. Excludingthis item, net income would have been R$482.6 million approximately.


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7PAGESource: JBS

JBS Consolidated Results 4Q11

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

865.7 835.9

587.7

786.6

940.6

6.0 5.7

4.0 5.1

5.6

-12,0

8,0

0,00

200,00

400,00

600,00

800,00

1000,00

1200,00

1400,00

1600,00

1800,00

4Q10 1Q11 2Q11 3Q11 4Q11

14,319.6 14,672.7

14,116.3

15,567.816,934.5

4Q10 1Q11 2Q11 3Q11 4Q11

-3.8% 10.3% +8.8%+2.5%

-29.7% +33.9% +19.5%-3.4%

EBITDA Margin (%)


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8PAGESource: JBS

Yearly Analysis

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

EBITDA (R$ bi) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (US$ mi)

JBS Mercosul JBS USA

(Including Australia)

JBS USA JBS USA (PPC)

Performance by Business Unit

6.9 7.5

2010 2011

13.1

16.5

2010 2011

13.314.9

2010 2011

3.03.5

-

2010 2011

276.8338.2

9.4% 9.7%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

-

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

500,0

550,0

600,0

650,0

700,0

2010 2011

663.7 739.1

5.1% 4.5%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

900,0

1000,0

1100,0

1200,0

1300,0

1400,0

1500,0

1600,0

1700,0

1800,0

1900,0

2000,0

2010 2011

1.3

1.6

9.7%10.7%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

0,0

0,5

1,0

1,5

2,0

2,5

2010 2011

481.9

7.0%

-2.0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

(0,6)1,43,45,47,49,411,4

13,415,417,419,421,423,425,427,429,431,433,435,437,439,441,443,445,447,449,451,453,455,457,459,461,463,465,467,469,471,473,475,477,479,481,483,585,587,589,591,593,595,597,599,5

101,5103,5105,5107,5109,5111,5113,5115,5117,5119,5121,5123,5125,5127,5129,5131,5133,5135,5137,5139,5141,5143,5145,5147,5149,5151,5153,5155,5157,5159,5161,5163,5165,5167,5169,5171,5173,5175,5177,5179,5181,5183,5185,5187,5189,5191,5193,5195,5197,5199,5201,5203,5205,5207,5209,5211,5213,5215,5217,5219,5221,5223,5225,5227,5229,5231,5233,5235,5237,5239,5241,5243,5245,5247,5249,6251,6253,6255,6257,6259,6261,6263,6265,6267,6269,6271,6273,6275,6277,6279,6281,6283,6285,6287,6289,6291,6293,6295,6297,6299,6301,6303,6305,6307,6309,6311,6313,6315,6317,6319,6321,6323,6325,6327,6329,6331,6333,6335,6337,6339,6341,6343,6345,6347,6349,6351,6353,6355,6357,6359,6361,6363,6365,6367,6369,6371,6373,6375,6377,6379,6381,6383,6385,6387,6389,6391,6393,6395,6397,6399,6401,6403,6405,6407,6409,6411,6413,6415,6417,7419,7421,7423,7425,7427,7429,7431,7433,7435,7437,7439,7441,7443,7445,7447,7449,7451,7453,7455,7457,7459,7461,7463,7465,7467,7469,7471,7473,7475,7477,7479,7481,7483,7485,7487,7489,7491,7493,7495,7497,7499,7501,7503,7505,7507,7509,7511,7513,7515,7517,7519,7521,7523,7525,7527,7529,7531,7533,7535,7537,7539,7541,7543,7545,7547,7549,7551,7553,7555,7557,7559,7561,7563,7565,7567,7569,7571,7573,7575,7577,7579,7581,7583,8585,8587,8589,8591,8593,8595,8597,8599,8601,8603,8605,8607,8609,8611,8613,8615,8617,8619,8621,8623,8625,8627,8629,8631,8633,8635,8637,8639,8641,8643,8645,8647,8649,8651,8653,8655,8657,8659,8661,8663,8665,8667,8669,8671,8673,8675,8677,8679,8681,8683,8685,8687,8689,8691,8693,8695,8697,8699,8701,8703,8705,8707,8709,8711,8713,8715,8717,8719,8721,8723,8725,8727,8729,8731,8733,8735,8737,8739,8741,8743,8745,8747,8749,9751,9753,9755,9757,9759,9761,9763,9765,9767,9769,9771,9773,9775,9777,9779,9781,9783,9785,9787,9789,9791,9793,9795,9797,9799,9801,9803,9805,9807,9809,9811,9813,9815,9817,9819,9821,9823,9825,9827,9829,9831,9833,9835,9837,9839,9841,9843,9845,9847,9849,9851,9853,9855,9857,9859,9861,9863,9865,9867,9869,9871,9873,9875,9877,9879,9881,9883,9885,9887,9889,9891,9893,9895,9897,9899,9901,9903,9905,9907,9909,9911,9913,9915,9918,0920,0922,0924,0926,0928,0930,0932,0934,0936,0938,0940,0942,0944,0946,0948,0950,0952,0954,0956,0958,0960,0962,0964,0966,0968,0970,0972,0974,0976,0978,0980,0982,0984,0986,0988,0990,0992,0994,0996,0998,0

1.000,0

2010 2011

-149.8


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Performance by Business Unit

Source: JBS

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)

Quarterly Analysis

1.8 1.92.0 1.9 1.8

4Q10 1Q11 2Q11 3Q11 4Q11

3.63.8

4.0

4.2

4.5

4Q10 1Q11 2Q11 3Q11 4Q11

3.4

3.6 3.6

3.93.8

4Q10 1Q11 2Q11 3Q11 4Q11

799.4 837.0846.0

867.1923.1

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

4Q10 1Q11 2Q11 3Q11 4Q11

124.8

-55.2 -47.6 -31.422.6

6.9%

-2.9% -2.4% -1.7%1.2%

-200

-100

0

100

200

300

400

500

4Q10 1Q11 2Q11 3Q11 4Q11

238.8

308.6

427.9 453.8 407.77.1%

8.6%11.8% 11.6% 10.7%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

0

100

200

300

400

500

600

4Q10 1Q11 2Q11 3Q11 4Q11

194.8

269.7

44.7

184.1223.6

5.4% 7.1%1.1%

4.4% 5.0%

-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%

0

100

200

300

400

500

4Q10 1Q11 2Q11 3Q11 4Q11

102.4 105.383.6 75.9 77.0

12.8% 12.6%9.9% 8.8% 8.3%

-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

4Q10 1Q11 2Q11 3Q11 4Q11


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10PAGESource: JBS

Revenue and EBITDA Distribution by Business Unit 2011

Net Revenue - 2011

EBITDA 2011

45%

25%20%

10%

50%

41%

19%

-10%


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11PAGESource: JBS

Organic Growth

Each business unit presented double digit organic growth in their local currency, for the analyzed period.

JBS USA Beef Net Revenue (US$ million) JBS USA Chicken Net Revenue (US$ million)

JBS USA Pork Net Revenue (US$ million) JBS Mercosul Net Revenue (R$ million)

2.600

2.800

3.000

3.200

3.400

3.600

3.800

4.000

4.200

4.400

4.600

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q111.600

1.700

1.800

1.900

2.000

2.100

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

500

550

600

650

700

750

800

850

900

950

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q112.800

3.000

3.200

3.400

3.600

3.800

4.000

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11


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12PAGESource: JBS

JBS Consolidated Exports Distribution in 2011

Taiwan 2.0%

Canada 3.3 %

South Korea 4.6%

Russia 8.4%

Others 18.0%

E.U 8.8%

Africa and Middle East 17.4%

China, Hong Kong andVietnam 12.5%

Mexico 10.9%

Japan 10.2%

US$ 9,581.0million

Approximately US$ 9.6 billion in 2011


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13PAGESource: JBS* subsidiary controlled by JBS with non-recourse debt.

Debt Profile

Net debt to EBITDA, excluding Pilgrims Pride Corp. (PPC)*, remained stable from 3Q11 at 3.0x.

Net debt to EBITDA, including Pilgrims Pride Corp. (PPC)*, remained stable from 3Q11 at 4.0x.

The Company ended the quarter with R$5.3 billion in cash or cash equivalents, equivalent to 100% of the Companys short-term debt.

Short Term Long Term

ST / LT Debt Profile

33%

30%

27%

28%

28%

67%

70%

73%

72%

72%

4Q10

1Q11

2Q11

3Q11

4Q11

The Company generated R$606,5 million of operating cash flow in 2011.

3.0 3.1

3.64.0 4.0x

0,0

1,0

2,0

3,0

4,0

-100

100

300

500

700

900

1100

1300

1500

4Q10 1Q11 2Q11 3Q11 4Q11

3.0 3.13.2

3.0 3.0x

0,0

1,0

2,0

3,0

4,0

. EBITDA. Leverage

Leverage

. Leverage Ex-PPC EBITDA Ex-PPC


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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.

4q11 conference call presentation

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