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June jbs 2013
1.
2. JBS S.A.
A T A G L A N C E
Founded in the 1950s in Midwest Brazil
IPO in Brazil in 2007
Leading protein producer in the world
Net Revenue of $39.6 billion for LTM 2013
EBITDA of $2.3 billion for LTM period ending March 2013
Acquisitions of XL Foods in Canada and Agrovêneto in Brazil with cash
outlay of $135.9 million
140,000 employees worldwide
307 production units on 5 continents
Market Cap of $10.2 + billion
3. Where We Are
A G L O B A L R E A C H
• Brazil
• United States
• Australia
• Mexico
• Puerto Rico
• Argentina
• Paraguay
• Uruguay
• Chile
• England
• Italy
• Egypt
• China
• South Korea
• Japan
• Canada
• United Kingdom
• Belgium
• Hong Kong
• United Arab Emirates
• New Zealand
• Russia
• Taiwan
• Mercosul
JBS S.A.
4. Market Leader
J B S G L O B A L R A N K I N G S
Largest global beef and
lamb producer1
st
Largest global leather
processor1
st
Largest global chicken
producer1
st
Largest pork producer
in the U.S.3rd
Largest global
cattle feeder1
st
5. Symbols of Quality
R E C O G N I Z E D B R A N D S
USA
Australia
Brazil
Argentina
6. JBS USA
I N D U S T R Y L E A D E R
JBS USA
is a leading processor of beef, pork and lamb and poultry
is the largest cattle feeder in the world
provides products to customers in more than 100 nations on five continents
employs more than 73,000 people at more than 170 production units in 26
states, Australia, Canada, Puerto Rico and Mexico
7. JBS USA
O U R L O C A T I O N S
Australia
Canada
United
States
Mexico
Puerto Rico
8. Beef
W O R L D L E A D E R
U.S. Processing
Plants: 9
Australian
Processing Plants: 12
(beef & smalls)
Canadian Processing
Plants: 1
Number of
Employees: 16,000+
Daily Processing
Capacity: 34,100
head
Domestic Market
Share:
22 percent
U.S. Procurement:
Cattle procured from
Canada,
Mexico and the U.S.
United States
Canada
Australia
9. Pork
QUALITY BEGINS AT THE FARM
Facilities:
3 plants, 2 case ready
facilities
Plant Locations:
Worthington, MN
Marshalltown, IA
Louisville, KY
Case Ready Locations:
Santa Fe Springs, CA
Muskegon, MI
Capacity: 50,000 Head/Day
3rd Largest Fresh Pork Producer
in the U.S.
12 Percent Share U.S. Pork
Industry
10. Facilities: 29 Fresh Processing Plants;
8 Prepared Foods Cook Plants
Employees: More than 37,500
Growers: 3,900 Contract Growers
Bird Capacity: 36 Million Birds Per Week or
9.5 Billion Pounds of Live Chicken Per Year
Pilgrim’s
HIGH QUALITY | GREAT VALUE
U.S. & Mexico
Puerto Rico
11. Five Rivers
GROWTH | TEAMWORK | LEADERSHIP
Feed yards: 12 Feed yards in 6 states and Canada
Employees: 730
Avg. Employee-to-Cattle Ratio: 1 to 1,250
One-Time Combined Feeding Capacity: 975,000 head
Markets about 2 million head / year
FEEDYARD LOCATION CAPACITY
1. CORPORATE GREELEY, CO
2. GILCREST LA SALLE, CO 69,000
3. KUNER KERSEY, CO 98,000
4. YUMA YUMA, CO 110,000
5. COLORADO BEEF LAMAR, CO 61,000
6. GRANT COUNTY ULYSSES, KS 110,000
7. CIMARRON TEXHOMA, OK 66,000
8. CORONADO DALHART, TX 67,000
9. XIT DALHART, TX 74,000
10. HARTLEY HARTLEY, TX 73,000
11. INTERSTATE MALTA, ID 52,000
12. MCELHANEY WELLTON, AZ 120,000
13. LAKESIDE BROOKS, AB, CA 75,000
12. JBS Carriers
D E L I V E R I N G T H E V A L U E
Number of Facilities: 6 terminals
Number of Employees: More than 900
Locations: Greeley, CO (head office); Hyrum, UT; Green Bay, WI;
Cactus, TX; Pittsburg, TX; Oakwood, GA.
Number of Trucks in Fleet: 750
Types of Trucks: Refrigerated, Live Cattle, Container Chassis, Tank
Miles Hauled/Year: 67,000,000
13. Swift & Co. Trade
GLOBAL MARKET | GLOBAL ACCESS
n Meat & Byproducts Trading Worldwide
n More Than 40 Years’ Experience in Global Markets
n Offices in Australia, New Zealand, U.S., Brazil
n Trading in All Meat Proteins, from Supply Sources
Across All Major Producers
n Trading Sales in Excess of $500 Million Per Year
14. Australia
GLOBAL STRENGTH | LOCAL PASSION
Processing Facilities:
10 Beef & Small Stock
Feedlots: 5
Distribution Centers & Cold
Stores: 9
Employees: More than 7,000
Largest meat
processor, exporter and cattle
feeder in Australia
• Bordertown, SA
• Brooklyn , Vic
• Canning Vale, WA
• Cobram , Vic
• Dandenong South, SA
• Greenacre, NSW
• Griffith, NSW
• Hemmant, QLD
• Legana, TAS
• Longford, TAS
• Nerimbera, QLD
• Pooraka, SA
• Quirindi, NSW
• Quoiba, TAS
• Riverview , QLD
• South Townsville , QLD
• Talwood, QLD
• Toowoomba , QLD
• Townsville , QLD
• Yanco, NSW
Locations
15. South America
GLOBAL STRENGTH | LOCAL PASSION
Processing Facilities: 81
Feedlots: 5
Distribution Centers & Cold
Stores: 12
Employees: 64,000
Largest meat processor and
exporter in South America
Leading beef company in South
America
World’s largest exporter of
poultry and leather
Locations
Brazil
Argentina
Paraguay
Uruguay
Brazil
Argentina
Uruguay
Paraguay
Sao Paulo
Global HQ
16. L O O K I N G T O T H E F U T U R E
Our Strategy
EBITDA
Margin
RATIONALE
Associating quality and branding to
increase client loyalty
Customized and further processed
products for the end users
Expanding a global distribution
platform to reach end clients
Developed an efficient and
diversified global production
platform
Production platform
Sales and distribution platform
Value added products
Branding
Financial
Structure
Experienced
Management
Cost
reduction, proce
ss optimization
Risk
Management
JBS’s Value & Strategy
17. STRATEGIC GLOBAL DISTRIBUTION
Production Platform
Slaughterhouses and
Production Units
Sales Office
Pork
LeatherBeef
Distribution CenterBiodieselChicken
Geographic
Presence and
Production
Capacity
86,700 head/day
Beef
50,100 head/day
Pork
18,265 head/day
Lamb
86,300 hides/day
Leather
3
63
39
29
2 64
17
303
6 Lamb
8.3 mm birds/day
Chicken
18. T O P O F M I N D B R A N D S
Value-Added Products
CHICKEN
Pilgrim’s
Pierce
Wing Dings
Wing Zings
Speed Grill
Country Pride
To-Ricos
Super-Chik’N
Honey-Dipt
Gold Kist Farms
BEEF
Swift & Company
G.F. Swift 1855 Brand Premium Beef
Aspen Ridge Natural Beef
Swift Black Angus
Cedar River Farms
5 Star Beef
Showcase
Steakhouse Classic
Clear River Farms
Certified Angus Beef
Liberty Bell
Moyer
Blue Ribbon Beef
Packerland
PORK
1855 Premium Pork
Swift Premium
Natural Guaranteed
Tender Pork
Swift Premium
Natural Pork
Swift La Herencia
Natural Pork
19. Perspectives
F O R T H E A N I M A L P R O T E I N M A R K E T
U.S. Cattle Herd & Beef
Production
Substantial recovery starting in 2014
Source: USDA NASS (National Agricultural Statistics Service) QuickStats and JBS
8
9
10
11
12
13
14
80
85
90
95
100
105
110
115
120
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014E 2016E 2018E 2020E
US Cattle Herd (million head) US Annual Beef Production (million tonnes cwt)
Forecast
20. Perspectives
F O R T H E A N I M A L P R O T E I N M A R K E T
Source: FAO
World Average Meat Consumption per Person, 1960s to 2030
0 5 10 15 20 25 30 35 40 45 50
2030
1997-99
1964-66
Poultry Pork Lamb Beef
21. Perspectives
F O R T H E A N I M A L P R O T E I N M A R K E T
Source: FAO - OECD
Meat Consumption Growth Forecast 2011-2020
Meat Consumption Forecast (Million tons)
Expected increase in meat demand by country groups
between 2010 - 2020
Emerging
Developed
19%
81%
Poultry Pork Sheep Beef
2020
228.1
Ave 2008-10
278.2
2001
338.3
67.5
95.1
122.5
90.8
105.7
126.6
58.6
64.6
73.6
11.2
12.7
15.6
22. Perspectives
F O R T H E A N I M A L P R O T E I N M A R K E T
Source: USDA 2012 (Estimated) | * Buffaloes / **Not Brazilian exports
Canada 4.0%
New Zealand 6.2%
Mercosul** 9.3%
Others 14.7%
USA 13.4%
Brazil 18.4%
India* 17.0%
Australia 17.0%
Chicken Exports
Beef Exports
Pork Exports
Turkey 2.8%
Thailand 5.3%
China 4.1%
E.U. 10.8%
Others 9.4%
Brazil 34.8%
USA 32.7%
Chile 2.5%
Brazil 9.0%
China 3.2%
Canada 17.0%
Others 4.4%
USA 33.4%
E.U. 30.5%
JBS is present
in the main
exporter
markets
23. Perspectives
F O R T H E A N I M A L P R O T E I N M A R K E T
The population growth coupled with rising living standards around the world
will drive an increase in demand for proteins in the emerging middle class
48
62 69
80
88
121
42
82
China Rússia México UE-27 Brasil EUA Mundo DesenvolvidosRussiaChina Mexico EU - 27 Brazil USA World Developed
Source: FAO
Recomended
Consumption
by FAO: 80/Kg
per person
Protein Consumption in the World Today is Half That Recommended by FAO
Per Capita Meat Consumption (Kg/per capita)
24. Highlights
F I R S T Q U A R T E R 2 0 1 3
348.3
439.7
4.4 4.5
-12.0
8.0
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
1800.0
2000.0
1Q12 1Q13
8.0
9.8
1Q12 1Q13
22%
26%
120.2
187.3
-120.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
1Q12 1Q13
Net Revenue ($ billion) Net Income* ($ million)EBITDA ($ million)
56%
25. Highlights
C O N S O L I D A T E D R E S U L T S - Q 1 2 0 1 3
Source: JBS
348.3
506.4
689.4
585.5
439.7
4,4
5.5
7.1
5.4
4.5
-12.0
8.0
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
1800.0
1Q12 2Q12 3Q12 4Q12 1Q13
8,005.6
9,234.2
9,683.3
10,925.4
9,763.8
1Q12 2Q12 3Q12 4Q12 1Q13
12.8%
-10.6%
15.3% 4.9%
-15.1%
-24.9%
45.4% 36.1%
EBITDA
Net Revenue ($ million) EBITDA ($ million) and EBITDA Margin
EBITDA Margin (%)
26. Highlights
J B S U S A B E E F ( I N C L U D I N G A U S T R A L I A )
Source: JBS
Performance by Business Unit
44%
% Net Revenue JBS S.A.
Net revenue for this business unit in the quarter was $4,315.1
million, outperforming 1Q12 by 5.8%, due to the increase in sales
prices both in the domestic market and exports, besides the
commencement of JBS’ operations in Canada, as a result of the
acquisition of XL Foods’ assets. Compared to 4Q12 net revenues
decreased 11.1%, principally due to the seasonality of the period.
EBITDA at this business unit was negative at $25.1 million, mainly
impacted by the pressure in the cost of raw material, due to the lower
availability of livestock for slaughter. EBITDA margin was -0.6%.
The Company believes in the improvement of the industry’s margins
through the recovery of sales prices and a better balance between
supply and demand, as well as the seasonal increase in the demand
for beef and in the supply of livestock during the summer. JBS’
management maintains its focus on a low cost operation, with
emphasis on increased profitability per animal processed and
improved sales mix.
Net Revenue ($ billion)
EBITDA ($ million)
EBITDA Margin (%)
5.8%
4.1
4.3 4.3
4.9
4.3
1Q12 2Q12 3Q12 4Q12 1Q13
-45,4 -9,1
175,1
103.3
-25.1
-1.1% -0.2%
4.1%
2.1%
-0.6%
-30.0%
-28.0%
-26.0%
-24.0%
-22.0%
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-100.0
0.0
100.0
200.0
300.0
400.0
500.0
1Q12 2Q12 3Q12 4Q12 1Q13
27. Highlights
J B S U S A P O R K
Source: JBS
Performance by Business Unit 9%
% Net Revenue JBS S.A.
Net revenue in the pork business for the quarter totaled
$842.0 million, a decrease of 1.6% year on year. This result is
due to the decline in export volume compared to 1Q12. In
comparison to 4Q12, net revenue decreased 11.9% due to the
seasonality of the period.
EBITDA totaled $46.8 million in 1Q13, a decrease of 16.1%
compared to 1Q12, with EBITDA margin at 5.6%. The decline in
EBITDA was due to the decreased exports and supply and
demand imbalance domestically during the first quarter of 2013.
In comparison to 4Q12, there was an increase of 9.6%.
Net Revenue ($ million)
EBITDA ($ million)
EBITDA Margin (%)
-1.6%
855.4 844.0 846.1
955.5
842.0
100.0
180.0
260.0
340.0
420.0
500.0
580.0
660.0
740.0
820.0
900.0
980.0
1060.0
1140.0
1220.0
1300.0
1Q12 2Q12 3Q12 4Q12 1Q13
55.8 49.2 40.4 42.7 46.8
6.5% 5.8% 4.8% 4.5% 5.6%
-23.0%
-19.0%
-15.0%
-11.0%
-7.0%
-3.0%
1.0%
5.0%
9.0%
13.0%
0.0
100.0
200.0
1Q12 2Q12 3Q12 4Q12 1Q13
28. Highlights
J B S U S A P O U LT RY ( P I L G R I M ’ S
P R I D E )
Source: JBS
Performance by Business Unit
21%
% Net Revenue JBS S.A.
Net revenue in the quarter for this business unit was
$2,036.9 million, 7.8% higher than the same period in
2012, due to the increase in prices of 8.3% and 15.8% in the
U.S. and in Mexico, respectively. The total volume sold
decreased 1.4% in the period.
Adjusted EBITDA in 1Q13 was $117.7 million, 13.2% above
1Q12. This EBITDA improvement was possible thanks to the
rising prices of chicken cuts which more than offset an increase
of $141.0 million in grain costs in the period. In addition, the
improvement in General and Administrative (G&A) expenses -
reduction of 2.8% over 4Q12, contributed to strengthen results.
The change in sales mix, productivity gains and the
reduction in operating costs were essential to optimize the
result for the period.
Net Revenue ($ billion)
EBITDA ($ million)
EBITDA Margin (%)
7.8%
1.9 2.0 2.1 2.2 2.0
1Q12 2Q12 3Q12 4Q12 1Q13
104.0
125.7
105.6
67.4
117.7
5.5% 6.4%
5.1%
3.1%
5.8%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
0
100
200
300
400
500
1Q12 2Q12 3Q12 4Q12 1Q13
29. Consolidated Exports
Source: JBS
China, Hong Kong and
Vietnan 18.4%
Mexico 14.2%
Japan 8.2%
Africa and Middle East 7.9%
Venezuela 7.0%Russia 5.7%
South Korea 5.3%
E.U. 5.2%
Canada 3.4%
Chile 3.0%
Taiwan 1.8%
Others 19.9%
1Q13
$2,607.6
million
Approximately $2.6 billion, an increase of 27.8% in relation to 1Q12
D I S T R I B U T I O N I N Q 1 2 0 1 3
30. Animal Welfare
S E T T I N G T H E S T A N D A R D
Dedicated to ensuring the humane treatment, handling and slaughter of animals
at all times.
Animal welfare is in the framework of our culture.
We continually strive to improve our animal welfare efforts through the use of new
technologies and the implementation of standards that meet and exceed regulatory
requirements.
As the largest food protein company in the world, we have the ability to make
a positive impact on the lives of many animals and we do this every day.
31. SustainabilityCULTURE
• Our responsibility
to be a good
corporate citizen is
an essential part of
our mission.
• We must contribute
to social and
economic
development
beyond the direct
impacts of our
business.
VALUE
• Our responsibility to
produce positive
financial results for
investors, shareholders
& employees.
• Successful financial
performance provides
the opportunity to
improve employee
quality of life &
enhance
environmental
stewardship. STEWARDSHIP
• Our responsibility to
sustainably manage
our natural
resources, mitigate
our environmental
footprint and
ethically source raw
materials.
• Serve as stewards of
the finite natural
resources critical to
our success.
CULTURE | VALUE | STEWARDSHIP
32. L O O K I N G T O T H E F U T U R E
Sustainable Growth
Adequate the Capital
Structure
Debt to finance
Working Capital
Equity to finance
growth
Constructing a global
meat production
platform
Geographic
diversification in
regions with low
production costs
Protein diversification
Access to all consumer
markets
Leadership in countries
with production surplus
Integration of the
operations and focus on
cash generation
Reduction of Operating
Costs
Reduction of Working
Capital Needs
Capture of Synergies
Reduction of Cost of
Debt
Benchmark between
production platforms
Economies of Scale
Global Distribution Platform
And Value Added Products
Increase in the portfolio
with high value added
products
Recognition and leadership
in brand and quality
Direct service to retail and
foodservice
Higher margins and cash
generation
Investments in
Marketing, Research and
Development.
Building Global Brands
Long
Term
2008 to
2009
2010 to
2012
2005 to
2007
Adequate Capital
Structure and
Qualified Management
to Promote Growth
33. Food Safety
O U R F I R S T P R I O R I T Y
Beef
SAFE Program (Slaughter Actions for
Excellence) for strong dressing procedures
Harvest Monitoring and Microbiological
programs
Pork
Pork IQ extensive & robust pig supplier
qualification program
All producers Pork Quality Assurance +
(PQA+) compliant
Poultry
Monitor every phase of production – from
hatchery to plant
Food safety culture focused on
prevention, not reaction
Robust intervention systems that
meet/exceed regulatory requirements
Effective, extensive training of
employees; performance monitoring
Multiple Hurdle Interventions –
Hazard Analysis and Critical
Control Points (HACCP)
Sanitation Standard Operating
Procedures (SSOP)
Standard Operating Procedures
(SOP)
34. Processor of the Year
NATIONAL PROVISIONER MAGAZINE
JBS USA invested
significant capital to
upgrade its
acquisitions, and today it
goes the extra mile to
incorporate state-of-the-
art, industry-leading
processes And
strategies, making a
statement that
it is in the U.S. protein
market for the long haul.
“
“
-- National Provisioner
Magazine
ANDRE NOGUEIRA
WESLEY BATISTA
BILL
RUPP
MIKE
THOREN
MARTY
DOOLEY
BILL
LOVETTE
35. Seara Acquisition
JBS NOW LARGEST CHICKEN PRODUCER
JBS acquires Seara, to become
the world’s largest chicken producer.
JUNE2013
36. JBS Food Canada Inc.
A C Q U S I T I O N
JBS Acquires XL Foods and begins
operating as JBS Food Canada Inc.
in Brooks, Alberta.
JANUARY 2013