1. JBS S.A. March
2011
Results Presentation
4Q10 and 2010
2. Perspectives for the animal protein market
JBS is well positioned to attend the global demand for animal protein
A promising sector to invest in
3. 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
PAGE 3
4. Brazil, Australia and the US continue to lead global beef exports
Brazil, Australia and US represent, respectively, 24%, 18% and 15% of global beef trade
Brazilian Beef Exports (tons)
1.400.000 5.500
5.000
1.200.000
4.500
1.000.000 4.000
+24.4%
3.500
800.000 3.000
+2.7% 2.500
600.000
2.000
400.000 1.500
1.000
200.000
500
0 0
2005 2006 2007 2008 2009 2010
Australian Beef Exports (tons) US Beef and Veal Exports (tons)
1.400.000 5.500 1.400.000 5.500
+11.8% 5.000 5.000
1.200.000 1.200.000
4.500 +10.9% 4.500
1.000.000 4.000 1.000.000 4.000
3.500 3.500
-1.9%
800.000 800.000 3.000
3.000
600.000 2.500 600.000 +19.5% 2.500
2.000 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 2005 2006 2007 2008 2009 2010
Beef Exports Average Price (US$/Ton)
Source: USDA, MLA and Secex PAGE 4
5. Chicken Exports Brazil vs US
Brazil and US represent, respectively, 39% and 34% of global chicken trade
Brazilian Chicken Exports (tons) US Chicken Exports (tons)
4.500.000 1.800 3.500.000 1.200
4.000.000 +13.4% 1.600 -4.3%
3.000.000
1.000
3.500.000 1.400
2.500.000 -0.7%
3.000.000 +26.6% 1.200 800
2.500.000 1.000 2.000.000
600
2.000.000 800 1.500.000
1.500.000 600 400
1.000.000
1.000.000 400
200
500.000
500.000 200
0 0 0 0
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
Chicken Exports Average Price (US$/Ton)
Fonte: USDA e Secex PAGE 5
6. JBS
Competitive Advantages
Factors to understand the Company’s sustained growth
7. JBS Ranking
1
st Largest global beef and
lamb producer
1
st Largest global leather
processor
2
nd Largest global chicken
producer
3rd Largest dairy
producer in Brazil
3 rd Largest pork producer
in the US
Source: JBS PAGE 7
8. Our Strategy
RACIONALE
Associating quality and branding to
increase client loyalty
Branding
Value added products Customized and further processed
products for the end users
Sales and distribution platform
Expanding a global distribution
platform to reach end clients
Production platform
Financial Experienced Cost reduction, Risk Developed an efficient and
Structure Management process Management diversified global production
optimization platform
EBITDA
JBS’ Value & Strategy Margin
PAGE 8
9. Transparent Strategy
through investing in To achieve
Growth Organic Growth & Acquisitions New products New markets Improved Scale
Process Efficiency in Information Qualified Cost reduction and
Improvement production and logistics Tecnology Professionals increased profitability
Expand Retain margins
distribuion Global direct Logistics (leased or from the value
network distribution Sales Team own fleet) added chain
Increased further Increase profit margins
Product processed, industrialized New production and reduce price
Diversification and branded products Marketing facilities volatility
Selection, Development and
Retention of qualified Formation of future
Profissionalization professionals Training Development leaders
PAGE 9
11. 4Q10 and 2010 Highlights
Net revenue in 2010 was R$55,055.8 million.
JBS presented an organic growth of 14.2% in net sales in their local currency.
Consolidated EBITDA was R$3,756.2 million in 2010, almost triple compared to 2009. EBITDA margin was
6.8%.
In 4Q10, the net revenue was R$14,319.6 million, EBITDA was R$865.9 million and EBITDA margin was
6.0%.
The main operating highlighs were:
JBS USA Pork presented EBITDA of
JBS USA Beef presented EBITDA of US$102.4 million, 258.0% higher than
US$194.8 million and EBITDA margin of the 4Q09, and a record EBITDA
5.4%. margin of 12.8% in 4Q10.
PAGE 11
14. Revenue Distribution by Market
Revenue Distribution by Business Unit
22.6% 22.5%
4Q10 Revenue Distribution by Market
10.0%
44.9% 4Q10 24% 76%
*
3Q10 28% 72%
2Q10 29% 71%
25.8%
21.7% 1Q10 23% 77%
3Q10 Exports Domestic Market
9.8%
42.7%
*
Source: JBS / *including Australia PAGE 14
15. EBITDA Distribution by Business Unit
EBITDA Distribution 4Q10
21.6% 27.0%
17.7%
33.7%
*
EBITDA Distribution 3Q10
29.7% 36.3%
15.9% 18.1%
*
Source: JBS / *including Australia PAGE 15
16. Organic Growth 2009 / 2010
Each business unit presented double digit organic growth in their local currency, for the period.
JBS USA Beef – Net Revenue (US$ million) JBS USA Chicken – Net Revenue (US$ million)
3.700 1.850
3.500 1.800
3.300
1.750
3.100
1.700
2.900
2.700 1.650
2.500 1.600
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10
JBS USA Pork – Net Revenue (US$ million) JBS Mercosul – Net Revenue (R$ million)
800 3.600
3.500
750
3.400
700
3.300
650
3.200
600 3.100
550 3.000
500 2.900
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10
Source: JBS PAGE 16
17. JBS Consolidated Exports Distribution
Others 11.9% Africa and Middle East 17.8%
Indonesia 1.2%
Taiwan 2.2%
China 3.9% Mexico 13.7%
2010
US 3.5%
Canada 4.3%
Japan 11.6% US$ 8,506.8 million
South Korea 5.0%
Hong Kong 6.8%
E.U. 7.7% Russia 10.4%
Others 13.4% Mexico 15.0%
Vietnam 1.5%
Africa and Middle East 14.9%
Taiwan 2.3% 4Q10
China 3.5%
Canada 4.0% Russia 12.5% US$ 2,087.9 million
South Korea 4.7%
Hong Kong 6.8%
E.U. 9.2% Japan 12.2%
Source: JBS PAGE 17
18. Debt Profile
The ratio of net debt to EBITDA was 3.0x in the 4Q10, compared with 2.9x in 3Q10.
It is important to note that the company incurred in non-recurring costs in the period such as: premium paid to debenture holders and
R$212.3 million use to repurchase shares of the Company. Excluding these items, the leverage would have reduced to 2.8x.
Profile
Capital Markets (Bonds) 28.0%
Leverage 4T10
Banks 67.0% BNDES 5.0%
1500
*
3,1 3,1
1300
3
2,9
3.0x 3
ST / LT Profile
1100
900
2 4Q10 33% 67%
700
500
300
1 3Q10 33% 67%
100
2Q10 36% 64%
-100 4Q09 1Q10 2Q10 3Q10 4Q10 0
. Leverage EBITDA 1Q10 40% 60%
Short Term Long Term
Source: JBS / * LTM including Bertin , Pilgrim’s Pride pro-forma and Inalca PAGE 18
19. Mission
“ To be best in what we set out to do, with absolute focus
in our activities, ensuring the best products and services
to customers, stability to suppliers, reasonable
return to shareholders, and the certainty of a better
”
future to all employees.