2. Who We Are
Our Mission
To be the best at what we set out to do, totally focused on our business, ensuring the best
products and services for our customers, solidity for our suppliers, satisfactory profitability for
our shareholders and the certainty of a better future for all our employees.
Our Values
Excellence
Planning
Determination
Discipline
Availability
Openness
Simplicity
2
3. Agenda
Company Overview
Short Term Outlook Market Overview
1Q10 Highlights
3
4. JBS at a Glance
Founded in the 1950’s in Central West Brazil
IPO in 2007
Leading protein producer and third largest food company in the World
Revenues of about USD 30 billion per annum
125,000 employees worldwide
Market cap of approximately USD 10,7 billion*
4
5. Shareholders
PROT - FIP
8%
Market
19,1%
Controlling
Holding
55,5%
BNDESPAR
17,3%
Average daily trade volume of USD 34,1 million*
*April and May/2010
5
6. JBS – A Leading Global Food Company
Growth Company (Net Revenues – R$ mm)1 Company at a Glance
55.224 • World’s largest protein producer (chicken,
beef, pork and lamb) with a global and
CAGR diversified low cost production platform
30.340
56%
• We’ve been focusing our sales growth mainly
14.142 in exports and Emerging Markets, the sum of
4.302
650 890 1.212 1.289 1.912 3.501 3.709 which represent approx. 40% of JBS 2009
sales
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
• We’ve been expanding our margins through
a wide range of value-added products,
expanding worldwide distribution capabilities
World’s Largest Food Companies and developing our brands, such as: Swift,
2009 Net Revenues (US$ bn)1 Maturatta, Friboi, Montana, Cabaña Las Lilas,
95 Bertin, King Island, 1855, Pilgrim’s Pride, Gold
Kist, Vigor and Leco
Protein Companies
• World’s largest hides/leather processor
40
30 27
15
• Significant producer of dairy products in Brazil
14 13 12 10 8 7
Tyson
General
Nestle
JBS
BRF
Campbell
Soups
Hormel
Heinz
Smithfield
ConAgra
Mills
Kraft
Foods
Source: Bloomberg
Note: 1 Pro forma figures
6
7. JBS – A Growth Company
EBITDA (R$mm)
Bertin Merger
CAGR (1999-2009): 58% Pilgrim’s Pride 3,058
JBS Hides
5 new units
Tasman
Inalca Smithfield Beef
Swift Foods Co. Five Rivers
Venado SB Holdings
Tuerto 1,156
Pontevedra
(CEPA) .
548 602
327 399
66 147 165
2001 2002 2003 2004 2005 2006 2007 2008 2009
1999 2006 – pre IPO 2009
% of total revenues of R$650mm % of total revenues of R$4.3bn % of total revenues of R$55.2bn
Industrialized/ Poultry
Further 13%
Pork
Processed 23% 6%
100% 52% Industrialized/
77% Beef 29% Further
Beef Beef Processed
7
8. Global Low Cost Production Platform
3
8 33 3 1
Total Number of Plants
65
33
10 5
3 44
6
World Beef Producers World Pork Producers World Chicken Producers
Brazil
Brazil Others Brazil
Others 3%
16% Others 15%
17%
34% 34%
China US China
10% 10% China
17%
48%
14% 22%
EU 22% 12%
21% 5% EU EU
US India US
8
9. Global Low Cost Production Platform (cont’d)
Chicken (€ /kg slaughtered chicken) Pork (€/Kg live weight)
1,56
0,85 1,46
0,75 0,77 0,79 1,28 1,35 1,35
0,74
0,65 1,07
0,51 0,52 0,90
Source: LEI – Wageningen University and Research Center (2007) Source: Rabobank (2006)
Cattle Cost (US$/kg cwe)
4,04
3,19
2,54 2,69 2,71 2,71
Source: World Beef Report (March 2010)
9
10. Leading, Sizeable and Diversified Business Platform
Beef Chicken Pork Hides / Leather Dairy Lamb
2nd
Ranking 1st 3rd 1st 3rd 1st
Global Global U.S.A. Global Brazil Global
Production 65 33 3 26 7 6
Units
‘000 heads/day: mm heads/day: ‘000 heads/day: ‘000 hides/day: ‘000 tons/day: ‘000 heads/day:
41.2 55.6 1.4
1.1
Geographic 6.7
Presence 28.6 6.9 48.5 28.6 4.5
and Installed
Capacity 8.7 6.0 23.0
3.0
1.0 0.7 1.2
Total: 90.3 Total: 7.6 Total: 48.5 Total: 91.4 Total: 1.4 Total: 27.5
Well-
Recognized
Brands
10
11. Strong Track Record of Acquisition Integration and Turnaround
JBS USA Margin Improvement
Pre-acquisitions Post JBS’ Ownership
3,2% 3,4%
2,5%
2,0% 398 451
236
193 0,2%
(0.3%)
21
(31)
1
2004 2005 2006 2007 2008 2009
At Acquisition JBS Management
Acquisition of Swift Took EBITDA from 15.1x 3.9x
2007 • EV of US$ 1.5 billion
US$96.3mm to nearly
US$375mm2 EV/EBITDA EV/2008EBITDA
Acquisition of Smithfield Achieved consolidated
2008 Beef2 EBITDA of US$163mm2,
8.1x 3.5x
even during the crisis EV/EBITDA EV/2008EBITDA
• EV of US$ 565 million
Acquisition of Pilgrim’s Stock price Sept/09:
Pride ~US$5.8 Market Cap : Market Cap3:
2009 Stock price April 6, 2010: US$1.3 bi US$2.4 bi
• US$ 800 million (64% stake) US$10.9
Notes:
1 Assumes 2-month operation of Smithfield Beef in 2008 3 Pilgrim’s Pride Market Cap as of April 6, 2010
2 Assumes 12-month operation of Smithfield Beef in 2008 11
12. Our Strategy
Rationale
Branding • Associating quality and branding to
increase client loyalty
• Customized and further processed
Value added products products for the
end users
Sales and distribution platform • Expanding a global distribution
platform to reach end clients
• Developed an efficient
Production platform and diversified global
production platform
Cost reduction,
Financial Experienced Risk
process
structure management management
EBITDA Margin optimization
JBS’ Value & Strategy
12
13. Distribution Platform with Access to Key Markets
Growth 1
-2 %
3%
4% Growth 1
9%
13 %
8%
Growth 1
Growth 1 7%
2%
25 %
8%
16 %
5% DC’s and Sales Offices
Protein Consumption in Key Markets (millions of Ton, 2009E)
Europe
Asia & Middle Europe Asia & Middle Asia Europe
East East 12 51
17%
8 16%
21
13 28% 30 24%
Latin America Latin America
41% 15% 59% 3%
22% 11 3
Latin America 13%
33% North America
North America 10 28%
North America
15 11
21
Total: 46 mm ton Total: 74 mm ton Total: 86 mm ton
1 Real growth of total consumption in tons – 2010E to 2015E
Source – OECD-FAO 13
14. Agenda
Company Overview
Short Term Outlook Market Overview
1Q10 Highlights
14
15. Market Highlights
• Domestic growth in Brazil remains strong
• Input cost consistently attractive, including grain prices
• Signs of growing importance of international trade with increased demand
in all major importing markets
• Consistent increase in US Exports to more diverse destinations
• Declining production in Europe
15
16. Animal protein consumption growth in the last decade
Former USSR
47.7%
EU - 27
North America 41.4%
7.5% 23.7% East Asia
Central 29% Middle East
America Southeast
70.2% Asia
48.7%
Sub Saharan
Africa
South America 32.2%
23.3%
Oceania
3
Source: FAPRI February 2010
16
17. Agenda
Company Overview
Short Term Outlook Market Overview
1Q10 Highlights
17
18. Highlights for the 1st Quarter 2010
• Net Revenue increased by 35.4%, from R$9,267.9 million in 1Q09 to R$12,550.3 million
in 1Q10, mainly due to the incorporation of Bertin and acquisition of Pilgrim’s Pride.
• The 1Q10 consolidated EBITDA increased 307.5% compared to the same period in 2009,
from R$211.5 million to R$862.0 million. The EBITDA margin was 6.9% for the period,
compared with 2.3% for 1Q09.
• Net Profit of R$99.4 million in 1Q10, compared to a net loss of R$322.7 million in 1Q09.
• Beef US posted EBITDA of US$170.5 million, on margin of 6.0%, a record for 1Q.
• In Mercosul, JBS posted EBITDA of R$352.6 million, with 11.9% margin.
18
21. Performance by Business Units
JBS USA (Beef) JBS USA (Pork) Pilgrim’s Pride Corporation
Including Australia
Net Sales (US$ billion) Net Sales (US$ million) Net Sales (US$ million)
1,7 1,6
2,9 2,8 2,8 2,8
646
2,7 554 559 606
526
1Q09 2Q09 3Q09 4Q09 1Q10
1Q09 2Q09 3Q09 4Q09 1Q10 1T09 1T10
EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin
4,8%
6,0% 3,6%
4,5%
3,6% 3,8% 5,4%
4,5% 4,7%
2,2%
2,7%
1,4%
170,5
126,0 80,8
104,6 108,4 34,9
59,5
28,6
59,7 24,7
15,3
7,5
1T09 1T10
1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10
Source: JBS
EBITDA Margin (%) 21
22. Debt
• Net debt / EBITDA ratio remained at 3.1x q-o-q. Gross debt declined 5.7%, while Net Debt
increased 12.2%, reflecting working capital requirements to ramp up recent acquisitions, as well as
investments in fixed assets, further impacted by FX fluctuations.
• The vast majority of the company’s short term debt is composed of revolving trade finance credit
lines.
• As demonstrated below, the percentage of short term debt was 40% in 1Q10, compared with 37%
in 4Q09 and 47% in 1Q09.
3,3 3,1 3,1
2,5 2,6
53% 60%
63%
47% 40%
37%
1Q09 4Q09 1Q10
1Q09 2Q09 3Q09 4Q09 1Q10
Short term Long term
Source: JBS
Net Debt/ EBITDA EBITDA pro-forma
* LTM including Bertin and Pilgrim’s Pride pro-forma. 22
23. Revenue Distribution by Market
1Q10 1Q09
Exports Exports
23% 22%
Domestic Domestic
Market Market
77% 78%
23
24. JBS Consolidated Exports Distribution
JBS Exports 1Q10 JBS Exports 1Q09
Taiwan Others Japan
2% 14%
Middle East 16%
4% E.U.
Canada 16%
4% China
5% South Korea USA
Hong Kong Russia
6% Mexico 11%
5% 8% 9%
US$ 1,765.4 Million US$ 901.4 Million
24
25. Agenda
Company Overview
Short Term Outlook Market Overview
1Q10 Highlights
25
26. A Closer look at synergies – Pilgrim’s Pride
Pilgrim’s Pride Acquisition: Synergies of over US$220mm/year
Description Size Timing
Transportation Review of contract terms with carriers US$35mn
Suppliers Review of contract terms with packaging and other suppliers US$30mn
Corporate Streamlining of corporate structure and headquarters closure US$35mn 1H10
G&A Review of service contracts (e.g. Legal, insurance and IT) US$50mn 1H10
Logistics optimization Increase efficiency in average weight per truck US$50mn 2 years
Exports Reach-out to end clients through JBS existing sales network US$20mn 2010
Total US$220mn
26
27. A Closer look at synergies – Bertin S.A.
Association with Bertin: Synergies to Achieve at Least R$485mm/year
Description Size Timing
Corporate/G&A Offices, personnel, services contracts and third parties R$40mn
Exports Maximization of the combined sales channels and review of freight contracts R$100mn
Hides / Leather Value enhancement through further processing R$45mn
1H10
Logistics Review of transportation contracts R$20mn 1H10
Suppliers Review contract terms of non core suppliers (e.g. packaging) R$35mn 2 years
Industrial Processes Optimization of fixed costs and rationalization of existing contracts R$245mn 2010
Total R$485mn
27
28. IR Contacts:
ir@jbs.com.br
+55 11 3144 4447
www.jbs.com.br/ir
“In God We Trust, Nature We Respect”
28