4q12 conference call presentation

7/30/2019 4Q12 Conference Call Presentation

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Results Presentation2012 and 4Q12


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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. at a Glance

JBS posted consolidated net revenue of R$75.7 billion, an increase of R$13.9 billion, 22.5% higher than 2011

EBITDA of R$4.4 billion, 40.0% above 2011

2012 adjusted net income of R$1.26 billion

Proposed dividends of R$170.7 million in 2012

Positive operating cash flow of R$1.5 billion

Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012, from 4.3x at 2T12 and 3.7x at 3T12.

JBS ended the year with R$5.4 billion in cash or cash equivalent, corresponding to 90% of short-term debt.

JBS USA has available committed lines of U$1.2 billion


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Perspectives for the global animal protein

market


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6PAGE

Worlds Food* Surpluses and Deficits

1965

1990

1970

1995

1975

2000

1980

2005

1985

2010

Net intra-regional trade, million tonnes

150

100

50

0

50

100

150

* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.Source: The Economist

NorthAmerica

SouthAmerica

Australia

Eastern Europeand former

Soviet Union

Western

Europe Asia

Middle East

& Africa

Central

America


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7PAGE

59.1

76.5

58.8

75.9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E

Beef Production and Consumption Forecasts - 2000/2021

Global Scenario

CAGR1.2%

Source: FAONote 1. Production and Consumption

Beef Production Beef Consumption

(million tons)


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8PAGE

69.4

127.2

69.0

127.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E

Source: FAONote 1. Consumption CAGR

Poultry Production and Consumption Forecasts - 2000/2021

Global Scenario

(million tons)Poultry Production Poultry Consumption

CAGR2.95%


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Pork Production and Consumption Forecasts - 2000/2021

Global Scenario

(million tons)Pork Production Pork Consumption

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E

126.2

125.4

90.0

89.5

CAGR1.6%

Source: FAONote 1. Consumption CAGR


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Meat Consumption Forecast (Million tons) Expected increase in meat demand by country groupsbetween 2010 - 2020

Emerging

Developed

Source: FAO - OECD

Meat Consumption Growth Forecast 2011-2020

19%

81%

Poultry Pork Sheep Beef

2020

228.1

Ave 2008-10

278.2

2001

338.3

67.595.1

122.5

90.8

105.7

126.658.6

64.6

73.6

11.2

12.7

15.6


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11PAGESource: USDA 2012 (Estimated)*Buffaloes / **Excluding Brazilian exports

Global Protein Trade Largest Exporters

JBS is present in the main exporter markets

Canada 5%

New Zealand 6%

Mercosul** 9%

Others 13%

USA 14%

India* 20%

Brazil 17%

Australia 17%

Chicken Exports

Beef Exports

Pork Exports

Turkey 3 %

Thailand 5%

Argentina 3%

E.U. 12%

Others 7%

Brazil 36%

USA 34%

Chile 2%

Brazil 9%

China 4%

Canada 17%

Others 4%

USA 34%

E.U. 30%


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12PAGEBeef and Veal exports Average Price (US$/Ton)

Australian Beef Exports (tons)

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

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2007 2008 2009 2010 2011 2012

-12.3%

15.6%

Brazilian Beef Exports (tons)

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

15.3%

-4.4%

US Beef and Veal Exports (tons)

Source: USDA, MLA & Secex

Brazil, Australia and the US continue to lead global beef exports

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

0.3%

1.4%


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13PAGESource: USDA & Secex

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

Chicken Exports Average Price (US$/Ton)

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

4.1%

10.1%

Chicken Exports Brazil vs US

1.600

1.800

2.000

2.200

1.300.000

1.400.000

1.500.000

1.600.000

1.700.000

1.800.000

1.900.000

1S11 2S11 1S12 2S12

-3.4%

6.0%


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14PAGE

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

Source: USDA & Secex

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

-8.2%

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

Pork Exports Average Price (US$/Ton)

14.4%

6.4%

-2.9%

Pork Exports Brazil vs US


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2012 and 4Q12 Highlights


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16PAGE

2012 Highlights

EBITDA margin (%)

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

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

Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012.

61.875.7

2011 2012

3,151.0

4,410.35.1 5.8

-12,0

8,0

-500,0

500,0

1500,0

2500,03500,0

4500,0

5500,0

6500,0

2011 2012

-75.7

1,259.0

-12-200,0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

2011 2012

23% 40%

Gross Profit (R$ million) G&A (R$ million) Operating Cash Flow (R$ million)

G&A / Revenue (%)Gross Margin (%)

6,696.6

8,689.810.8

11.5

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

-1000,0

1000,0

3000,0

5000,0

7000,0

9000,0

11000,0

13000,0

15000,0

2011 2012

1,739.22,057.4

2.8 2.7

-12,0

8,0

0,0

500,0

1000,0

1500,0

2000,0

2500,0

3000,0

3500,04000,0

4500,0

2011 2012

606.5

1,472.3

-12-200,0

300,0

800,0

1300,0

1800,0

2011 2012


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17PAGE

Operating Cash Flow of R$796 million

R$322.1 million Free Cash Flow

4Q12 Highlights

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

EBITDA margin (%)

EBITDA (R$ million)

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

940.6

1,170.9

5.6 5.4

-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

4Q11 4Q12

16.9

21.9

4Q11 4Q12

29%26%

25.6

310.4

-120,0

50,0

100,0150,0

200,0

250,0

300,0

350,0

4Q11 4Q12


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18PAGESource: JBS

JBS Consolidated Results 4Q12

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

EBITDA Margin (%)

940.6

696.5

1,012.8

1,378.8

1,170.9

5.64.3

5.5

7.1

5.4

-12,0

8,0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

4Q11 1Q12 2Q12 3Q12 4Q12

16,934.516,011.1

18,468.319,366.6

21,850.7

4Q11 1Q12 2Q12 3Q12 4Q12

4.9%12.8%

-5.5% 15.3%

36.1%-15.1%

-26.0% 45.4%


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19PAGE

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)

1.8 1.92.0 2.1

2.2

4Q11 1Q12 2Q12 3Q12 4Q12

4.5

4.14.3 4.3

4.9

4Q11 1Q12 2Q12 3Q12 4Q12

22.6

104.0 125.7 105.6

67.4

1.2%

5.5% 6.4% 5.1%3.1%

-20,0%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

0

100

200

300

400

500

4Q11 1Q12 2Q12 3Q12 4Q12

407.7508.6

630.3 665.6 664.8

10.7%13.3% 14.6% 14.5%

12.6%

-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

4Q11 1Q12 2Q12 3Q12 4Q12

3.8 3.8

4.34.6

5.3

4Q11 1Q12 2Q12 3Q12 4Q12

223.6

-45.4 -9.1

175.1

103.3

5.0%

-1.1%-0.2%

4.1%2.1%

-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

100

200

300

400

500

4Q11 1Q12 2Q12 3Q12 4Q12

923.1855.4 844.0 846.1

955.5

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

4Q11 1Q12 2Q12 3Q12 4Q12

77.055.8 49.2 40.4 42.7

8.3% 6.5% 5.8% 4.8% 4.5%

-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

4Q11 1Q12 2Q12 3Q12 4Q12


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20PAGESource: JBS

JBS Mercosul


Net revenue at JBS Mercosul came in at R$5,270.2 million in 4Q12,

increase of 39.5% in comparison with 4Q11.

EBITDA totaled R$664.8 million in 4Q12, stable over the last quarter.

EBITDA margin at JBS Mercosul was 12.6% in the quarter.

The Positive results of this business unit in 2012 reflect the

operational improvements and efficiencies implemented by the

management and reinforces the strategic view adopted.

24%

% Net Revenue JBS S

Net Revenue (R$ billion)

EBITDA (R$ million)

EBITDA Margin (%)

39.5%

3.8 3.8

4.34.6

5.3

4Q11 1Q12 2Q12 3Q12 4Q12

407.7508.6

630.3 665.6 664.8

10.7%13.3% 14.6% 14.5%

12.6%

-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

4Q11 1Q12 2Q12 3Q12 4Q12


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21PAGESource: JBS

JBS USA Beef (including Australia and Canada)


Net revenue for this business unit was US$4,856.0 million in thequarter.

EBITDA at JBS USA Beef unit totaled US$103.3 million in theperiod, with an EBITDA margin of 2.1%.

Despite adverse market conditions, the Company improved itsoperating metrics through better management of working capitaland efficiency gains and is strengthened to operate in a morefavorable supply and demand scenario.

The reduction of restrictions imposed by Japan to import U.S.beef will promote U.S. exports and contribute to increase the

profitability per animal processed.

Net Revenue (US$ billion)

EBITDA (US$ million)

EBITDA Margin (%)

% Net Revenue JBS S

8.1%

4.5

4.14.3 4.3

4.9

4Q11 1Q12 2Q12 3Q12 4Q12

223.6

-45.4 -9.1

175.1

103.3

5.0%

-1.1%-0.2%

4.1%2.1%

-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

100

200

300

400

500

4Q11 1Q12 2Q12 3Q12 4Q12

46%

JBS USA P k9%


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22PAGESource: JBS

JBS USA Pork


Net revenue in the pork business for the quarter totaled

US$955.5 million, an increase of 3.5% year on year. Compared to

3Q12, there was a 12.9% growth.

EBITDA was US$42.7 million in 4Q12 with an EBITDA margin of

4.5%.

This quarter's results reflect an increase in the number of

animals slaughtered and better inventory management. 2012 result

was impacted by increased sales volumes and lower sales prices.

The highlight of the operation was exports, which increased by

5.1% in 2012 compared to 2011.

Net Revenue (US$ million)


EBITDA Margin (%)

% Net Revenue JBS S

3.5%

923.1855.4 844.0 846.1

955.5

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

4Q11 1Q12 2Q12 3Q12 4Q12

77.055.8 49.2 40.4 42.7

8.3% 6.5% 5.8% 4.8% 4.5%

-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

4Q11 1Q12 2Q12 3Q12 4Q12

JBS USA P lt (Pil i P id C ti )


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23PAGESource: JBS

JBS USA Poultry (Pilgrims Pride Corporation)


Net revenue in the 4Q12 for this business unit came in atUS$2,189.7 million, 19.7% higher than the same period of 2011.

Adjusted EBITDA in 4Q12 was US$67.4 million, 198.2% higher than4Q11.

Net income in the 4Q12 was US$22.8 million, reversing the negativeUS$85.4 million in 4Q11.

23% reduction in the PPCs net debt between December 2011 to2012, as a consequence primarily, from the US$200 million operating

cash flow.

Net Revenue (US$ billion)


EBITDA Margin (%)

% Net Revenue JBS S

21%

1.8 1.92.0 2.1

2.2

4Q11 1Q12 2Q12 3Q12 4Q12

22.6

104.0 125.7 105.667.4

1.2%

5.5% 6.4%5.1%

3.1%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

0

100

200

300

400

500

4Q11 1Q12 2Q12 3Q12 4Q12

19.7%

JBS C lid t d E t Di t ib ti i 2012


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24PAGESource: JBS

JBS Consolidated Exports Distribution in 2012

Approximately US$9.8 billion, an increase of 22.7% in relation to 2011

Mexico 14.6%

China, Hong Kong eVietnan 14.0%

Japan 11.0%

Africa e Middle East10.3%

Russia 7.4%E.U. 6.2%

Korea 5.4%

Canada 5.4%

Venezuela 3.3%

Chile 3.1%

Taiwan 2.0%

Others 17.4%

US$9,830.2

million


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Debt Profile

Debt Profile


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26PAGE

Debt Profile

JBS net debt to EBITDA decreased to 3.4x in the 4Q12, substantially lower than in the first semester

In January 2013, JBS issued a US$500.0 million Bond, due in 2023 and with a yield of 6.5%

4,004,30 4,27

3,683,43

0

1

2

3

4

5

-100

100

300

500

700

900

1100

1300

1500

4Q11 1Q12 2Q12 3Q12 4Q12

30%

27%

23%

27%

70%

73%

77%

73%

4Q12

3Q12

2Q12

1Q12

Bonds40%

Others60%

4Q12

Leverage ST / LT Debt Profile

Bonds / OtherBreakdown by Currency and Company

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

R$ 26% USD 74%4Q12

Source: JBS

JBS S.A.59%

Subsidiaries41%

4Q12


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Sustainability and

Social Responsability

Cattle Traceability System


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28PAGE

JBSs Traceability System

JBS has been developing, since 2010,

an environmental system to monitor

its cattle suppliers located in theAmazon bioma which is based on

satellite images, geospatial data of

farms and official information in order

to analyze more than 30,000 cattle

suppliers located in this region of the

country.

Responsible Purchase

JBS is committed to purchase cattle onlyfrom suppliers who respect and comply

with the Company's social andenvironmental criteria.

We reject deforestation

We reject the invasion of indigenous landsand protected areas

We reject to working conditions analogousto slavery

We reject violence and conflicts in ruralareas

Cattle Traceability System

Stakeholders


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29PAGE

JBS actively participates in

the main discussion

forums onsustainable

livestock

Stakeholdersengagement

JBS received top marks in 7 units of leather forenvironmental and sustainability practices in theproduction process by the international organizationLeather Working Group (LWG). Totaling 7 unitsreceived gold medal and 2 Silver, all with "A" gradeon traceability.

Stakeholders

JBS Institute funds Germinare School


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30PAGE

Germinare School is a social initiative of the JBS Institute whichlooks at Education as the principal instrument to transform society.

Laboratory

Social

GERMINARE SCHOOL

Purpose: to prepare well-educated and well-rounded citizens with abroad cultural repertoire, sound ethical values and a positiveattitude toward life and society.

Number of students: 450 (2013)Capacity of 630 students.

Area: 6,000 m2Sport complex, swimming pool, computer lab and chemistry lab.

Amount invested: R$15 million

Selection process: tests and group dynamics.

Top Brazilian professors.

JBS Institute funds Germinare SchoolSocial Responsibility

Source: JBS

Started in 2010.


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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.

4q12 conference call presentation

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