3. JBS S.A. at a glance
Founded in the 1950’s in Midwest of Brazil
IPO in 2007
Leading protein producer in the World
Net Revenue of R$34.5 billion in 1st semester of 2012
EBITDA of R$1.7 billion in 1st semester of 2012
Net revenue organic growth of 18% in 1st semester of 2012
135,000 employees worldwide
301 production units in 5 continents
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
4 Well-recognized processor
brands
1
st Largest global chicken
producer
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 of 2007 JBS became the largest beef company in the world and the
successful biggest Brazilian company in the food industry and entered the
acquisitions US pork market.
2008 Construction of a sustainable global meat Inalca
production and sales platform. Rockdale Beef
Pilgrim´s Pride
3 Geographic and Swift Foods Co. Tatiara Meat
(Swift Austrália)
market segment 2009 Diversification of market segments through the Maringá (Amambay)
Merger with Bertin
diversification acquisition of Pilgrim’s Pride and merger with Bertin. Berazategui (Rio Platense) JBS Couros 36.9
Colonia Caroya 5 new units
2010 JBS Swift became the leader in lamb production in
Australia. SB Holdings
Tasman 31.1
4 Well-recognized Rio Branco
JV Beef Jerky
brands Cacoal 1 Venado Smithfield
Cacoal 2 Tuerto Beef
Porto Velho Pontevedra Five Rivers
Barretos (Anglo) Vilhena (CEPA)
(Frigovira)
Pres. Epitácio e Pedra Preta
Campo grande (Frigo Marca) 16.5 17.2
(Bordon)
Cáceres
(Frigosol)
Barra do Rosário
Garças Andradina Araputanga Iturama San Jose
(Sadia) (Sadia) (Frigoara) (Frigosol) (Swift Argentina)
7.2
1.2 1.5 2.0
0.4 0.4 0.5 0.5 0.4 0.7
1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Net revenue (USD billion)
Source: JBS PAGE 5
7. Presence in more than 100 countries, in 5 continents
1 Market Leader Strategic Geographical Distribution
2 Track Record of
successful
acquisitions
3 Geographic and
market segment
diversification
4 Well-recognized
brands
2 Biodiesel Slaughterhouses and
3 Pork 39 Chicken 64 Distribution Center 301
Production Units
61 Beef 6 Lamb 29 Leather 17 Sales Office
Geographic Beef Chicken Pork Leather Lamb
Presence and 81,400 heads/day 8.3 mm birds/day 50,100 heads/day 86,300 hides/day 18,265 heads/day
Production
Capacity
Source: JBS PAGE 7
8. 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 8
9. 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
USA
Australia
PAGE 9
11. Global consumption of animal protein has been increasing
Consumption growth 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, 2010. PAGE 11
12. World’s Food* Surpluses and Deficits
Net intra-regional trade, million tonnes
Central Western Middle East
America Europe Asia & Africa
North South Australia
America America
Eastern Europe
and former
Soviet Union
1965 1970 1975 1980 1985
1990 1995 2000 2005 2010
* Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. PAGE 12
Source: The Economist
13. Global Protein Consumption Growth by Species
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 12%
Brazil 17%
Argentina 3%
Uruguay 4%
Canada 5% Australia 17%
E.U 6%
New Zealand 6%
USA 16%
India 14%
Source: USDA 2011 (Estimated) PAGE 14
20. 2Q12 Highlights
JBS posted consolidated net revenue of R$18.5 billion, 26.3% higher than 2Q11.
Consolidated EBITDA was R$1,012.8 million which represents an increase of 72.3% compared to 2Q11. EBITDA
margin was 5.5%.
JBS Mercosul was highlight during the quarter reporting net revenue of R$4,317.7 million, an increase of 19.4%
over 2Q11. EBITDA increased 47.3% over the same period and was R$630.3 million, EBITDA margin was 14.6%.
JBS USA Chicken (Pilgrim’s Pride Corporation) posted net revenue of US$2.0 billion and EBITDA of US$125.7
million in the period, reversing the negative result presented in 2Q11.
Adjusted net Income in the period was R$212.9 million excluding deferred income tax liabilities generated by
goodwill (this only generates effective income tax payment if the company sells the investment that generated
goodwill). Consolidated reported net income was R$169.5 million.
The Company ended the quarter with R$5.475 billion in cash or cash equivalent, corresponding to more than 110%
of short-term debt.
PAGE 20
23. JBS Consolidated Exports Distribution in 1S12
Approximately US$4.4 billion
Mexico 15.5%
Others 15.1%
Venezuela 1.9%
China, Hong Kong and
Taiwan 2.1% Vietnam 14.6%
Chile 3.6%
US$4,387
million
Canada 4.8% Japan 11.7%
E.U 6.1%
Russia 9.3%
South Korea 6.2%
Africa and Middle East 9.1%
Source: JBS PAGE 23
24. Debt Profile
2Q12 Net debt to EBITDA was 4.27x.
The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 110% of short-term debt.
The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12
Leverage ST / LT Debt Profile
1500 4.30 4.27
28% 72%
1300
4.04 4.00 4 3Q11
3.60
1100
900
3 4Q11 28% 72%
700
2 1Q12 27% 73%
500
300
1
100 2Q12 23% 77%
-100 2Q11 3Q11 4Q11 1Q12 2Q12 0
. Leverage EBITDA Short Term Long Term
.
Source: JBS PAGE 24
25. Debt Maturity Schedule and Profile
Net Debt: 15,276.9 (R$ million)
Short Term Net
of Cash 2013 2014 2015 2016 2017 2018 2019 and after
656
169
883
1,381
2,567 2,738
3,726
4,469
Breakdown by Currency and Company Bonds / Other
JBS S.A. Subsidiaries
2Q12
57% 43%
Bonds Other
2Q12
37% 63%
2Q12 R$ 25% USD 75%
Source: JBS Financial Statements 2Q12 PAGE 25
26. 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 26
27. JBS actions related to cattle traceability and the Amazon Biome
Sustainability
Environmental
JBS SA participates in CDP - Carbon Disclosure Project.
Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.
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 & Environmental
JBS Brazil monitors a 100% of its cattle suppliers properties via
satellite geo-referencing (GPS monitoring).
JBS contains a database of almost 12,000 cattle ranches registered
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 27
(2)Legal Amazon Deforestation Monitoring Project
28. 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.