1. 2008 Consolidated Results
3.74 Leverage
2.89
2.77
2.31
1.95
1.96
JBS lives an intense process of deleverage reducing
the net debt / EBITDA ratio from 3.74x in 2007 to
1.95x in 2008.
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
February 20th, 2009
JBS S.A.
“In God we Trust”
2. Presenters
Joesley Mendonça Batista
CEO
Jeremiah O’Callaghan
Investor Relations Director
Rodrigo Gagliardi
Investor Relations Manager
1
3. Our Values
The Foundation Of Our Culture
Planning
Determination
Discipline
Availability
Openness
Simplicity
2
5. 2008 Highlights
• JBS lives an intense process of deleverage reducing the net debt / EBITDA ratio from 3.74x in 2007
to 1.95x in 2008.
• Adjusted pro forma net income in 2008 of R$1.05 billion, if adjusted by the exchange variation of
foreign investments and excluded the goodwill amortization.
• Net revenue increased 114.5% YoY from R$14.1 billion in 2007 to R$30.3 billion in 2008.
• EBITDA YOY increased 95.6% from R$591.1 million in 2007 to R$1,156.1 million in 2008.
• Proposed dividend distribution has increased threefold from R$17.5 million in 2007 to R$51.1
million in 2008.
• Integration of the Tasman Group, of Smithfield Beef and the Five Rivers Feedlot grew the global
production platform of JBS as well as increasing penetration in the world market while introducing
cost cutting synergies.
• Distribution network of INALCA JBS enhanced the contact with customers in Africa and Eastern
Europe.
• Proven risk control and management policy preserved the financial health of JBS during a period of
uncertainty and high volatility particularly during the second semester of 2008.
4
4
6. Debt Profile – 4Q08
• The Administration of the Company is secure that even if the present financial crisis has not abated, the Company will not have
difficulties in refinancing its short term debt and believes that in the final analysis there will be a possible increase in the cost of the
debt.
JBS S.A. Consolidated (R$ million) Probable Scenario
Short Term Debt
Short Term Debt
1Q09 2Q09 3Q09 4Q09 Total %** 1Q09 2Q09 3Q09 4Q09
Financing for purchase of fixed assets
FINAME / FINEM - Enterprise financing 11 11 11 59 91 100% 11 11 11 59
Notes Payable 1 1 1 2 5 100% 1 1 1 2
Subtotal 1 12 12 11 61 96 100% 12 12 11 61
Loans for working capital purposes
ACC - Exchange advance contracts 214 322 150 29 715 0% - - - -
EXIM - BNDES export credit facility 72 0 0 0 72 100% 72 - - -
Fixed Rate Notes with final maturity in February 2011 9 - - - 9 100% 9 - - -
Working Capital - American Dollars * 33 71 0 0 104 0% - - - -
Working Capital - Australian Dollars 86 74 0 - 160 0% - - - -
Working Capital - Euros *** 1 11 2 288 302 0% - - - -
Working Capital - Reais 51 - - - 51 0% - - - -
Export prepayment 160 16 16 16 208 0% - - - -
Fixed Rate Notes with final maturity February 2016 (144-A) - 30 - - 30 100% - 30 - -
NCE / COMPROR 330 - 100 37 467 0% - - - -
Subtotal 2 957 524 268 371 2.119 5% 81 30 0 0
Total 969 536 279 431 2.215 9% 93 42 11 61
Amortization of Short Term Debt 2.215 207
Cash, cash equivalents and Short-term investments 12/31/2008 2.292 2.199 2.157 2.145 2.085
Working Capital 2.704
* Including Finimp
** Percentual to be paid in the period.
*** Working Capital due short term and automatically renewable.
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10. Debt Profile
• JBS’s Net debt in relation to its Net Debt / EBITDA Pro Forma per TRIMESTER
EBITDA (last twelve months pro
forma) is affected by weak results in Net Debt = R$ 3,325 MM
Net Debt = R$ 3,325 MM
= 1,95
1.95
= 1.95
EBITDA pro forma = R$ 1,706 MM
the 4th quarter 2007 and 1st EBITDA pro forma = R$ 1,706 MM
quarter 2008.
3.74
• Good results expected for 1st
quarter 2009 will reduce the 2.89
2.77
relation between Net Debt over
Ebtida. 2.31
*
1.95
Exchange Rate:
R$ / US$ = 2.34 – 12/31/2008
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
US$ / €$ = 1.39 – 12/31/2008
Source: JBS
Net Debt / EBITDA
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11. JBS USA Beef EBITDA Margin Evolution
EBITDA Margin (%)
EBITDA Margin (%)
Peers Average Beef USA 6.4%
JBS Beef USA
4.2%
3.6% 5.3%
2.3% 2.0%
3.2%
1.3% 1.3%
0.9% 0.9% 0.9%
0.7%
-0.4%
1.1%
-0.4%
-0.7% -0.9%
-1.2% -1.3% 7.3 p.p Gain
-1.7%
-5.3%
FY03* FY04* FY05* FY06* FY07* 3Q07** 4Q07** 1Q08** 2Q08** 3Q08** 4Q08**
Previous Management JBS S.A. Management
Source: JBS and estimates of JBS based upon public data from peers
EBITDA margins of the Companies taking into consideration beef only in the US
*Fiscal years for the Companies differ one from the other:
FY Tyson: October to September
FY Smithfield: May to April
FY National Beef: September to August
FY JBS USA: June to May (altered after the acquisition)
**The relevant quarterly period and adjustments made to the calendar year 10
12. Consolidated Gross Revenue Distribution
Revenue Distribution by Business Units 12M08
Revenue Distribution by Business Units 12M08 Revenue Distribution by Market 12M08
Revenue Distribution by Market 12M08
Beef Italy
Beef Australia 5% Beef Argentina
12% 3%
Pork USA Beef Brazil Exports
32%
14% 19%
Domestic Market
68%
Beef USA
47%
Source: JBS Source: JBS
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13. Consolidated Exports Distribution
Exports Distribution 12M08
Exports Distribution 12M08
China Others Mexico
USA 3% 15% 18%
3% Russia
Taiwan 13%
4% E.U,
Middle East Canada Japan 11%
South Korea 7% 8% 9%
4%
Hong Kong
5%
Source: JBS Exports JBS 12M08: US$ 5.6 billion
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14. Enterprise Value and EBITDA Multiple
SMITHFIELD BEEF ACQUISITION
SMITHFIELD BEEF ACQUISITION SWIFT USA ACQUISITION
SWIFT USA ACQUISITION
EV / EBITDA EV / EBITDA
US$565.0 mm US$1,458.8 mm
15.1x
8.1x
370.5
3.5x
3.9x
163.1
96.3
70.0
133% 285%
Oct-07 Dec-08 Jul-07 Dec-08
Source: JBS
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15. Final Considerations
• Commitment from the Management to reduce the leverage of the
Company.
• Appropriate liquidity level.
• We will continue to grow. We see the present crisis as an immense
opportunity.
• Regardless of the negative aspects of the present macroeconomic
scenario, the Management of this Company forecasts substantially
improved consolidated operational results for 2009.
• Planning and discipline contributed to risk reduction.
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16. Questions & Answers
3.74 Leverage
2.89
2.77
2.31
1.95
1.96
JBS lives an intense process of deleverage reducing
the net debt / EBITDA ratio from 3.74x in 2007 to
1.95x in 2008.
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
February 20th, 2009
JBS S.A.
“In God we Trust”
17. Disclaimer
The forward-looking statements presented herein are subject to risks and uncertainties. These
statements are based on the beliefs and assumptions of our management, and on information
currently available to us.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties
and assumptions because they relate to future events and therefore depend on circumstances that
may or may not occur. Our future operating results, financial condition, strategies, market share
and values may differ materially from those expressed in or suggested by these forward-looking
statements. Many of the factors that will determine these results and values are beyond our
ability to control or predict.
Forward-looking statements also include information concerning our possible or assumed future
operating results, as well as statements preceded by, followed by, or including the words
''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,''
''estimates'' or similar expressions.
