3. JBS S.A. at a glance
Founded in the 1950’s in West Central Brazil
IPO in 2007
Leading protein producer and third largest food company in the World
Revenues of over R$ 29.3 billion in the 1st semester 2011
EBITDA of R$ 1.42 billion in the 1st semester 2011
Organic growth of 14.2% in local currency in 2010
125,000 employees worldwide
134 production units in 5 continents
Market cap of approximately R$ 13.8 billion(1)
(1) 31/07/2011 PAGE 3
4. JBS Ranking
1 Market Leader
2 Track Record
of successful
acquisitions
3 Geographic and
1
st Largest global beef and
market segment lamb producer
diversification
1
st Largest global leather
processor
4 Well-recognized
brands
2
nd Largest global chicken
producer
3rd Largest dairy
producer in Brazil
3 rd Largest pork producer
in the US
Source: JBS PAGE 4
5. Merger and Acquisition track record
1 Market Leader More than 30 acquisitions in 15 years
2005 JBS went international with the acquisition of Swift Argentina.
2 Track Record 2007 JBS became the largest beef company in the world and the
of successful biggest Brazilian company in the food industry and entered the
acquisitions US pork market.
Rockdale Beef
2008 Construction of a sustainable global meat Pilgrim´s Pride
Inalca Tatiara Meat
production and sales platform.
(Swift Austrália)
3 Geographic and Swift Foods Co.
Merger with Bertin
market segment 2009 Diversification of market segments through the Maringá (Amambay) JBS Couros
diversification acquisition of Pilgrim’s Pride and merger with Bertin. Berazategui (Rio Platense) 5 new units 54.7
Colonia Caroya
2010 JBS Swift became the leader in lamb production in Tasman
Australia. SB Holdings
JV Beef Jerky Smithfield
4 Well-recognized Rio Branco
Cacoal 1 Venado
Beef
Five Rivers
brands Cacoal 2 Tuerto
Porto Velho Pontevedra 34.3
Barretos (Anglo) Vilhena (CEPA) 30.3
(Frigovira)
Pres. Epitácio e Pedra Preta
Campo grande (Frigo Marca)
(Bordon)
Cáceres
(Frigosol)
Barra do Rosário
Garças Andradina Araputanga San Jose 14,1
Iturama
(Sadia) (Sadia) (Frigoara) (Frigosol) (Swift Argentina)
4.3
0.3 0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5
1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net revenue (R$ billion)
Source: JBS PAGE 5
7. Presence in more than 100 countries, in 6 continents
1 Market Leader Strategic Geographical Distribution
2 Track Record of
successful
acquisitions
3 Geographic
and market
segment
diversification
4 Well-recognized
brands
3 Pork 37 Chicken 7 Dairy 58 Distribution Center 134 Slaughterhouse and Industry
60 Beef 20 Leather 1 Biodiesel 7 Sales Office u Units
Geographic Beef Chicken Pork Leather Dairy Lamb
Presence and 85,825 heads/day 7.9 mm birds/day 50,000 heads/day 76,100 hides/day 5,400 tons/day 24,000 heads/day
Production
Capacity
Source: JBS PAGE 7
8. Well-recognized Brands, symbols of quality
1 Market Leader
2 Track Record of
successful
acquisitions
Brazil
3 Geographic and
market segment
diversification Argentina
4 Well-recognized
brands
EUA
Australia
PAGE 8
9. Our Strategy
RATIONALE
Branding Associating quality and branding to
increase client loyalty
Customized and further processed
Value added products
products for the end users
Expanding a global distribution
Sales and distribution platform
platform to reach end clients
Developed an efficient and
Production platform diversified global production
platform
Financial Experienced Cost reduction, Risk
Structure Management process Management
optimization
EBITDA
JBS’s Value & Strategy Margin
PAGE 9
10. Perspectives for the animal protein market
JBS is well positioned to serve global demand for animal protein
A promising sector to invest in
11. Global consumption of animal protein has been increasing
Consumption by region over the past ten years
North Asia
North America
E.U. - 27 +3.0%
+47.7%
+7.5%
Middle East +41.4%
+23.7% East Asia
Central America +29%
+70.2%
Southeast Asia +48.7%
+32.2%
South America Oceania +23.3%
Africa
Source: Rabobank PAGE 11
12. Global Protein Trade Continues to Grow
JBS Has Presence in Markets That Represent Nearly 64% of Global Trade
(MT in mm)
300
250
200
150
100
50
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019
Historical Forecast
Source: Historical figures per USDA FAS. Projected and forecasted data per OECD estimates. PAGE 12
13. Global Protein Consumption Growth
Strong Global Industry Fundamentals
(MT in mm)
250
200
150
100
50
0
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Source: USDA FAS PAGE 13
14. Global Beef Trade
Largest Beef Exporters
Others 10.0%
Brazil 27.0%
E.U. 1.0%
Uruguay 5.0%
Argentina 5.0%
Canada 6.0%
Australia 18.0%
New Zealand 7.0%
India 10.0%
USA 11.0%
Source: USDA PAGE 14
15. Brazil, Australia and the US continue to lead global beef exports
Brazil, Australia and US represent, respectively, 27%, 18% and 11% of global beef trade
Brazilian Beef Exports (tons)
1.400.000 5.500
5.000
1.200.000
+31.6% 4.500
1.000.000 4.000
3.500
800.000 3.000
600.000 2.500
-16.4% 2.000
400.000 1.500
1.000
200.000
500
0 0
2005 2006 2007 2008 2009 2010 1H10 1H11
Australian Beef Exports (tons) US Beef and Veal Exports (tons)
1.400.000 5.500 1.400.000 5.500
5.000 5.000
1.200.000 +13.0%
1.200.000 +4.3%
4.500
4.500
1.000.000 4.000 1.000.000 4.000
3.500 3.500
800.000 800.000 3.000
3.000
600.000 2.500 600.000 2.500
+3.5% 2.000 +25.8% 2.000
400.000 1.500 400.000 1.500
1.000 1.000
200.000 200.000
500 500
0 0 0 0
2005 2006 2007 2008 2009 2010 1H10 1H11 2005 2006 2007 2008 2009 2010 1H10 1H11
Beef Exports Average Price (US$/Ton)
Source: USDA, MLA and Secex PAGE 15
16. Chicken Exports Brazil vs US
Brazil and US represent, respectively, 39% and 34% of global chicken trade
Brazilian Chicken Exports (tons) US Chicken Exports (tons)
4.500.000 2.000 4.500.000 1.800
4.000.000 1.800 4.000.000 1.600
+21.4%
3.500.000 1.600 3.500.000 1.400
1.400
3.000.000 3.000.000 1.200
1.200 +10.2%
2.500.000 2.500.000 1.000
1.000
2.000.000 2.000.000 800
+6.4% 800
1.500.000 1.500.000 -1.7% 600
600
1.000.000 400 1.000.000 400
500.000 200 500.000 200
0 0 0 0
2005 2006 2007 2008 2009 2010 1H10 1H11 2005 2006 2007 2008 2009 2010 1H10 1H11
Chicken Exports Average Price (US$/Ton)
Source: USDA and Secex PAGE 16
17. Pork Exports US vs Brazil
US and Brazil represent, respectively, 32% and 11% of global pork trade
Brazilian Pork Exports (tons) US Pork Exports (tons)
3.000 3.000
1.400.000 1.400.000 +7.2%
+12.0%
2.500 2.500
1.200.000 1.200.000
1.000.000 2.000 1.000.000 2.000
800.000 800.000
1.500 1.500
+14.5%
600.000 600.000
1.000 1.000
400.000 400.000
-1.8% 500 500
200.000 200.000
0 0 0 0
2005 2006 2007 2008 2009 2010 1H10 1H11 2005 2006 2007 2008 2009 2010 1H10 1H11
Pork Exports Average Price (US$/Ton)
Source: USDA and Secex PAGE 17
18. $ Global Surplus (deficit)
Goldman Sachs forecast for animal protein in 2020
Surplus Deficit
Beef & Veal
Pork
Chicken
Source: Goldman Sachs PAGE 18
20. 2Q11 Highlights
Net revenue in 2Q11 was R$14,621.8 million, 3.6% higher than 2Q10.
The Company ended the quarter with R$5.0 billion in cash more than a 100% of the short-term debt.
The Company raised US$2.0 billion in long-term debt.
JBS concluded the capitalization of the debentures in shares of JBS S.A. at R$7.04.
All the business units of JBS presented significant organic growth y-o-y.
The main operating highlights were:
JBS Mercosul presented EBITDA of JBS USA Pork presented EBITDA of
R$427.9 million, with a EBITDA margin of US$83.6 million, 71.7% greater than
11.8% 2Q10, with EBITDA margin of 9.9%.
PAGE 20
24. Revenue and EBITDA Distribution by Business Unit
Revenue - 2Q11 Revenue - 2010
21.5% 25.4% 22.5% 24.8%
9.6% 9.7%
43.5% 43.0%
EBITDA - 2Q11 EBITDA
-12.6%
73.4% 23.0% 34.7%
26.5%
12.6%
12.7% 29.7%
Source: JBS PAGE 24
25. Organic Growth
Each business unit presented double digit organic growth in their local currency, for the period.
JBS USA Beef – Net Revenue (US$ million) JBS USA Chicken – Net Revenue (US$ million)
4.000 2.100
3.800
2.000
3.600
3.400 1.900
3.200 1.800
3.000
1.700
2.800
2.600 1.600
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
JBS USA Pork – Net Revenue (US$ million) JBS Mercosul – Net Revenue (R$ million)
850
3.600
800 3.500
750 3.400
700 3.300
3.200
650
3.100
600
3.000
550 2.900
500 2.800
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Source: JBS PAGE 25
26. JBS Consolidated Exports Distribution
Others 16.0% Japan 13.7%
2Q11
Vietnam1.2%
Africa and Middle East 13.6%
Taiwan 2.7%
China 4.1%
US$ 2,363.6 million
Canada 4.8% Mexico 13.0%
Hong Kong 6.8%
E.U. 6.9%
Russia 9.5%
South Korea 7.7%
Others 14.0% Africa and Middle East 15.9%
1Q11 Philippines 1.3%
Mexico 14.4%
Taiwan 2.5%
China 4.0%
US$ 2,450.3 million
Canada 4.4% Japan 13.1%
E.U. 5.2%
Hong Kong 6.8%
Russia 8.4% South Korea 10.1%
Source: JBS PAGE 26
27. Debt Profile
Net debt to EBITDA, excluding Pilgrim’s Pride Corp. (PPC)*, went from 2.9x in 1Q11 to 3.2x in 2Q11
Net debt to EBITDA, including Pilgrim’s Pride Corp. (PPC)*, went from 3.1x in 1Q11 to 3.6x in 2Q11
The Company ended the quarter with R$5.0 billion in cash or cash equivalents, more than a 100% of the Company’s short-term debt
Leverage ST / LT Profile
2Q11 27% 73%
1500
3.6x
1300
3.1
1100
3.0 2.9 3.0 3,0 1Q11 30% 70%
900
4Q10 33% 67%
700 2,0
500 3Q10 33% 67%
300 1,0
100
2Q10 36% 64%
-100 2Q10 3Q10 4Q10 1Q11 2Q11 0,0
. Leverage EBITDA Short Term Long Term
Source: JBS PAGE 27
* subsidiary controlled by JBS with non-recourse debt.
28. Stock Market
In 2007, JBS was the first Company in the beef industry to trade its
shares on the stock market
30. $ Sell-side analyst recommendation
Institution Analyst Recommendation Target Price (R$)
Banco do Brasil Mariana Peringer Hold In revision– 10.20 (last)
Bradesco Ricardo Boiati / Alan Cardoso Market Perform 8.80
BTG Pactual Fábio Monteiro / Thiago Duarte Buy 9.30
Citi Carlos Albano Hold 7.40
Goldman Sachs Gustavo Wigman / Claudio Lensing Neutral 7.30
HSBC Pedro Herrera / Diego Maia Neutral 6.40
Merrill Lynch BofA Fernando Ferreira / Isabella Simonato Neutral 5.00
Santander Luis Miranda Hold 7.00
Safra Erick Guedes / Fernando Labes Outperform 10.35
UBS Gustavo Oliveira / Flavio Barcala Neutral 5.10
Source: Bloomberg and JBS PAGE 30
31. Corporate Governance
JBS is listed on the Novo Mercado, a segment in which companies are committed to
following a series of rules that provide better transparency and security to investors
Transparency
Management and Board of Directors
Good Governance Practices Board of Directors Audit Committe
Confidence 11 members 5 members
Best services and products 1 president Consist of shareholders or not, liable to
5 permanent directors be elected or dismissed at any time of
Solidity 5 permanent independent directors the General Meeting.
Profitability
Future * Board of Executive Officers Committes of Directors
Elected by the board of directors, for
three-year terms, and are eligible for
reelection. 4 committes
Audit
Finance
Human Resources
Corporate Strategy / Sustainability
PAGE 31
32. Sustainability
JBS is listed on the Novo Mercado which guarantees transparency,
confidence and continuous improvements in best practices
33. Social, economic and environmental responsibility has always been a part of the
development and business growth of JBS
Foundation
Economic Social Environmental
Risk and Crises Citizenship and Environmental
Management Education Management
Corporate Direction Good Practices of Human Eco-efficiency
Resource
Knowledge Management Sustainable Cattle
Human Capital Breeding
Stakeholders Development
Engagement Climate Changes
Premises Priorities
Ecologically viable Sustainable use of the materials
* Clean Development
Ecologically correct Partnership with reputable organizations Mechanism
**United Nations
Socially responsible Health and Quality of life Framework Convention
on Climate Change
Culturally acceptable Climate
Residue Treatment
Source: JBS Sustainability Policy PAGE 33
34. JBS Institute funds Germinare School
Social Responsibility
Social GERMINARE SCHOOL
Started in 2010
Germinare School is a social initiative of the JBS Institute which
looks at Education as the principal instrument to transform society.
Purpose: to prepare well-educated and well-rounded citizens with a
broad cultural repertoire, sound ethical values and a positive
attitude toward life and society.
Classroom
Social
Number of students (2011): 270
Capacity of 630 students.
Top Brazilian professors.
Area: 6,000 m2
Sport complex, swimming pool, computer lab and chemistry lab.
Selection process: tests and group dynamics.
Amount invested: R$15 million Laboratory
Source: JBS PAGE 34
35. JBS actions related to cattle traceability and the Amazon Biome
Sustainability
GTPS (Sustainable Livestock Working Group) Social
Satellite image monitoring of the Amazon Biome
Purpose: reduce deforestation in the Amazon Biome; avoid
purchasing cattle from Environmentally Protected Areas – EPAs,
Indigenous reserves and protected areas; eradication of slave
labor in Brazil.
Amazon
Social
JBS Brazil monitors a 100% of its cattle suppliers properties via
satellite georeferencing (GPS monitoring).
JBS contains a database of almost 12,000 cattle ranches registred
in the Amazon Biome.
After the property coordinates are collected, the data is keyed into
JBS’s registry of cattle suppliers and is sent to an outsource company
to be analyzed by superimposing on a map constructed from satellite
images and the DETER(1) and PRODES(2) produced by Brazil’s National
Satellite image
Institute for Space Research – INPE.
Source: JBS Sustainability Policy
(1)Real Time Deforestation Detection
PAGE 35
(2)Legal Amazon Deforestation Monitoring Project
36. Mission
“To be best in 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 to all our employees.
