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October, 2010
2
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.
Agenda
3
2Q10 HighlightsMarket Overview
Company Overview
Short Term Outlook
4
Our MissionTo be the best at 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 for all our employees.
Our ValuesExcellence
Planning
Determination
Discipline
Availability
Openness
Simplicity
Who We Are
Corporate Structure
Investors
Relations
Jeremiah
O’Callaghan /
Guilherme Arruda
Finance
Director Brazil
Marcos Cunha
Bastos
Corporate
Law
Department
Francisco
de Assis e Silva
Marcos graduate from
Mackenzie University in
Business Administration
and has a MBA in
Finance from San
Francisco State
University. Worked in
many financial institutions
in Brazil, primarily in
Investment banking,
Financial Projects, and
Portfolio management.
Started in 2008 with JBS.
Francisco is the director of
the Law Department. Has
a post graduated from the
University of Mackenzie.
Started working at JBS in
December of 2001 and
later became a member of
the Executive Board in
January of 2007.
Jerry has a Engineering
Degree from the University
of Cork College in Ireland.
Immigrated to Brazil in
1979. Started working in
the Beef Sector in 1983 and
in JBS in 1996 in order to
develop the Trade Area and
eventually became the
Investors Relations Officer.
Guilherme graduated in
Business and Economics
from the University of
California. Start in the
Company in 2009 after
working for 7 years for BTG
Pactual.
Corporate
And Adm.
Controller
Eliseo
Fernandes
Eliseo has a Business
Administration and
Accounting Degree from
the University Católica de
Pernambuco and a post
graduate degree in
Business Administration
from FGV. He started with
JBS in August 2005 and
eventually became
Director of Administration
and Corporate
Governance. He has 8
years Experience in
Auditing and Consulting
and 10 years in the Retail
industry.
Dairy
Gilson
Teixeira
CEO
MERCOSUL
Marco
Bortolon
JBS
Hides
Roberto
Motta
New business
José Luis
Medeiros
Commercial and
Distribution
International
Offices
Marco Bichieri
CEO
President
Joesley
Batista
Marco has more than 10
years experience in JBS.
Initially started as a
Production Manager and
in 2009 was promoted to
Chief Operating Officer of
the Brazil Beef Division.
Marco has more than 24
years of experience in the
Protein Sector. Worked
for more than 20 years in
Bertin.
Roberto has more than 20
years in the Leather
Industry. Was responsible
for incorporating BMZ
Hides with the JBS Group.
Gilson has more than
25 years experience in
Finance and Controller
of business units of
Bertin, where he later
served as a member of
the Board for 5 years.
José Luiz has a degree
in Accounting and has
been working in the Beef
Sector since 1975. 14
year in Bertin and
started at JBS in 1997.
January 2010 became
the Director of New
Business.
5
Corporate Structure
Australia
Iain Mars
Pilgrim's Pride
Don Jackson
Beef USA
Bill Rupp
JBS Five
Rivers
Mike
Thoren
JBS Carriers
Mr. Moe
Schroder
CEO
USA/AUS
Wesley
Batista
Pork
Martin
Dooley
Iain was born in England
and worked in the Beef
Industry for his whole life.
He became the President
and CEO of JBS Australia
in 2007, after the
acquisition of Swift. He
has worked in JBS since
2005.
Martin has a degree in
Biology from the University
of Eastern Illinois. Worked
in Swift for his whole life,
having started the
company as a manager
trainee in 1983. In 2007
was given the position of
president of the Pork
Division of JBS USA.
Moe has more than 30
years experience in
Transportation Sector.
Graduated from the
University of Ryerson,
Toronto, Canada.
Occupied the position of
Vice President of Sales,
Dedicated Operations at
KLLM and before that was
in various executive
positions at CR England .
Moe Joined JBS to run the
carrier business
Mike is the President and
CEO of Five Rivers since
the Start of the Company.
Has a Masters of Science
in Agricultural Economics
and has a degree in
Agribusiness from the
University of Washington
State.
Bill has learned the Beef
Industry from the ground
up. Right out of college,
he began learning the
business at Cargill where
he worked for 25 years.
He was a plant general
manager and eventual
went to build a meat
processing facility in
Canada. He later
became the VP of
Operations, then was the
President of the Beef
Business, and eventual
became the president of
Cargill Meat Solutions.
Bill joined JBS in 2010 as
the President of the US
Beef Business.
Don is the President,
CEO and Director of
Pilgrim’s Pride since
January 2009. For 9
years was the president
of the chicken division of
Foster Farms and vice
president of Food
Services in ConAgra
Poultry Company.
Before this he worked
at Seaboard farms of
Athens for 22 years,
including 4 years as the
CEO of the Chicken
Division
Trading
Robert
Wadland
Robert has 27 years of
meat trading experience
with 17 years of that at
JBS enhancing exports
out of Australia and New
Zealand. Recently
transferred to the US to
run the group’s trading
business unit
CFO
André
Nogueira
Human
Resources
Bob
Daubenspeck
André has a degree in
Economics from the
Federal University
Fluminense, a masters in
Capital Markets from
FGV – Fundação Getúlio
Vargas, and masters in
Economics from
University of Brasilia in
2003. Worked more than
20 years at Bank of
Brazil and started at JBS
USA in 2007 after the
Swift acquisition.
Robert assumed this
position in February
2009 and before that
was in JBS
Packerland from 2002
to 2008.
6
Shareholders
7
Average daily trade volume of USD 50.4 million in 2Q10
Source: JBS
Controlling Holding55.5%
BNDESPAR17.3%
Market19.1%
PROT - FIP8.1%
Leading, Sizeable and Diversified Business Platform
8
1stRanking
Well-
Recognized
Brands
Production
Units
Geographic
Presence
and Installed
Capacity
2nd 3rd 1st 3rd 1st
Global Global U.S.A. Global Brazil Global
Beef
41.2
1.1
6.7
28.6
9.5
3.0
1.0
‘000 heads/day:
6.9
0.7
mm heads/day:
48.5
‘000 heads/day: ‘000 hides/day:
1.4
‘000 tons/day:
4.5
23.0
‘000 heads/day:
Total: 91.1 Total: 7.6 Total: 48.5 Total: 91.4 Total: 1.4 Total: 27.5
Chicken Pork Hides / Leather Dairy Lamb
76 33 3 26 7 6
55.6
28.6
6.0
1.2
Our Strategy
9
Production platform
Sales and distribution platform
Value added products
Branding
JBS’ Value & Strategy
EBITDA Margin
Financial structure
Experienced management
Cost reduction, process
optimization
Risk management
• Developed an efficient and diversified global production platform
• Expanding a global distribution platform to reach end clients
• Customized and further processed products for the end users
• Associating quality and branding to increase client loyalty
Rationale
Distribution Platform with Access to Key Markets
101 Real growth of total consumption in tons – 2010E to 2015ESource – OECD-FAO
Distribution Center
Growth 1
2 %
5 %
8 %
Growth 1
7 %
16 %
25 %
Growth 1
9%
8%
13 %
Growth 1
4 %
3 %
-2 %
Sales Offices
Agenda
11
2Q10 HighlightsMarket Overview
Company Overview
Short Term Outlook
World Meat Consumption (million tons cwe)
2000 2009 2018Growth
2009-2018
Pork 89 102 120 18%
Poultry 70 98 120 23%
Beef 60 65 75 15%
TOTAL 219 265 315 19%
2000 2009 2018Growth
2009-2018
OECD 92 100.4 108.5 8%
NON OECD 127 164 205 25%
Source: OECD/FAO Agricultural Outlook 2009-2018
12
Animal protein consumption growth in the last decade
13
3
Source: FAPRI February 2010
7.5%
29%
32.2%
70.2%
41.4%
47.7%
23.7%
23.3%
48.7%
North America
Central
America
South America
Sub Saharan
Africa
Middle EastSoutheast
Asia
East Asia
Former USSR
Oceania
EU - 27
Beef Exports
14Source: USDA and Secex
US Beef and Veal Exports (Tons) Brazilian Beef Exports (Tons)
Rising demand in emerging economies drove export volumes up in the semester both
in Brazil and in the US but more importantly, pricing was very strong. As beef production
is long cycle, some of this export demand will tend to boost chicken exports, particularly
out of the US, in the coming years.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2005 2006 2007 2008 2009 JAN-JUN 09
JAN-JUN 10
3,800
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
Beef Exports Avg Price in US$ per Ton
24.3%
5.3%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2005 2006 2007 2008 2009 JAN-JUN 09
JAN-JUN 10
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Beef Exports Avg Price in US$ per Ton
7.0%
26.6%
Chicken Exports
15Source: USDA and Secex
Brazilian Chicken Exports (Tons) US Poultry Exports (Tons)
Strong domestic demand in both Brazil and the US limited exports in the first
semester although it is clear that prices will tend to push up export volumes from now on
particularly taking into account the reopening of the Russian market for US product.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2005 2006 2007 2008 2009 JAN-JUN 09
JAN-JUN 10
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Chicken Exports Avg Price in US$ per Ton
1.1%
17.3%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2005 2006 2007 2008 2009 JAN-JUN 09
JAN-JUN 10
-
200
400
600
800
1,000
1,200
Chicken Exports Avg Price in US$ per Ton
-6.5%
-2.9%
Agenda
16
2Q10 HighlightsMarket Overview
Company Overview
Short Term Outlook
Highlights for the 2nd Quarter 2010
17
Revenues increased 52.5% y-o-y and 12.5% to R$14,116.3 million
• JBS USA increased 67.6% y-o-y and 12.9% q-o-q
• JBS MERCOSUL increased 123.1% y-o-y and 19.1% q-o-q
• JBS Exports increased 37.0% q-o-q reaching 29% of sales
EBITDA increased 163.3% y-o-y and 16.0% q-o-q.
Leverage remained fairly stable at 3.0x
Consolidated customer base grew by 22.2% q-o-q, reaching more than 300
thousands customers in 2Q10.
JBS Consolidated Results
18
Source: JBS
EBITDA Margin (%)
Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)
9.255,08.379,9
7.408,9
12.550,3
14.116,3
2Q09 3Q09 4Q09 1Q10 2Q10
69,4%-11,6% 12,5%-9,5%
384,0
291,9
397,8
862,0
1.000,0
4,1%3,5%
5,4%
6,9% 7,1%
2Q09 3Q09 4Q09 1Q10 2Q10
-24,0% 36,3% 116,7% 16,0%
Performance by Business Units
19
Net Sales (US$ billion) Net Sales (US$ million) Net Sales (US$ million)
EBITDA (US$ mi) EBITDA
marginEBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin
JBS USA BeefIncluding Australia
JBS USA Pork JBS USA Chicken (PPC)
Source: JBS
EBITDA Margin (%)
2,9 2,8 2,8 2,8
3,3
2Q09 3Q09 4Q09 1Q10 2Q10
104,6 108,4126,0
170,5
194,9
3,6% 3,8%4,5%
6,0% 5,9%
2Q09 3Q09 4Q09 1Q10 2Q10
554 559 606 646739
2Q09 3Q09 4Q09 1Q10 2Q10
24,7
15,3
28,634,9
48,7
4,5%2,7%
4,7%5,4%
6,6%
2Q09 3Q09 4Q09 1Q10 2Q10
1,71,8
1,6 1,7
1Q09 2Q09 1Q10 2Q10
80,8
164,6
59,5
127,6
4,8%
9,3%
3,6%
7,5%
1Q09 2Q09 1Q10 2Q10
1,7 1,7 1,7
3,0
3,5
2T09 3T09 4T09 1T10 2T10
Net Sales (R$ billion)
EBITDA (R$ mi) EBITDA
margin
82,6
47,3
112,2
352,6334,5
4,9% 2,9%
6,6%
11,9%
9,5%
2T09 3T09 4T09 1T10 2T10
JBS MERCOSUL
Revenue Distribution by Market
20
Revenue Distribution by Market 2Q10 Revenue Distribution by Market 1Q10
Revenue Distribution by Market 2Q10 Revenue Distribution by Market 1Q10
Beef Domestic 44%
Pork Domestic 7%
Chicken Domestic 20%
Beef Exports 25%
Pork Exports 2%
Chicken Exports 2%
Exports = 29% Domestic Market = 71%
Beef Domestic 47%
Pork Domestic 8%
Chicken Domestic 22%
Beef Exports 20%
Pork Exports 1%
Chicken Exports 2%
Exports = 23% Domestic Market = 77%
Source: JBS
Mercosul27%
USA Beef42%
USA Pork9%
USA Chicken22%
Mercosul23%
USA Beef42%
USA Pork10%
USA Chicken25%
EBITDA Distribution by Business Units
21
2Q10 1Q10
USA BEEF34.7%
USA PORK8.7%USA Chicken
22.7%
Mercosul33.5%
USA BEEF36.1%
USA PORK7.4%USA Chicken
12.6%
Mercosul43.9%
Source: JBS
JBS Consolidated Exports Distribution
22
JBS Exports 2Q10 JBS Exports 1Q10
US$2,3331.0 Million US$1,765.4 Million
Source: JBS
Africa and Middle East 16%
Mexico 14%
Japan 12%Hong Kong
9%
Russia 8%
E.U. 8%
USA 7%
South Korea 4%
China 4%
Canada 4%
Taiwan 2% Others
12%Africa and Middle East19%
Mexico12%
Japan10%Hong Kong
8%Russia
10%
E.U.7%
USA7%
South Korea5%
China4%
Canada4%
Taiwan2% Others
12%
Debt
23
While JBS leverage remained fairly constant in the quarter (at 3.0x LTM EBITDA), the liquidity of the
balance sheet improved significantly.
The company’s cash position increased 17,5% when compared with 1Q10 (which represents 70% of
the company’s ST debt, from 55% in the previous quarter), while ST debt decreased 7,7% in the same
period.
Considering the US$700mm bond issuance in July, ST debt on a pro-forma basis would represent
roughly 33% of total debt, closer to the company’s target of having less than 30% of its total debt
maturing in the ST.
Source: JBS
*LTM including Bertin and Pilgrim’s Pride pro-forma.
** Pro-Forma takes into account senior unsecured notes issued July, 2010
2,6
3,3 3,1 3,1 3,0x
2Q09 3Q09 4Q09 1Q10 2Q10
39% 40% 36% 33%
61% 60% 64% 67%
2Q09 1Q10 2Q10 (Pro-Forma)*
Short term Long term
*
**
Leverage ST / LT Profile
Agenda
24
2Q10 HighlightsMarket Overview
Company Overview
Short Term Outlook
A Closer look at synergies – Pilgrim’s Pride
25
JBS already captured US$ 150 million in synergies with Pilgrim’s Pride acquisition of a
total estimated amount of US$ 220 million.
The illustration bellow the origins of the captured synergies.
Captured Synergies
US$ 150 MillionLogistics Optimization
Efficiency gains in the average load factor for trucks
US$50mm
Total US$70mm
Descrição
2 years
On going Synergies
ExportsReaching final customers through the JBS current salesstructure.
US$20mm 2010
Size Time
Source: JBS
Logistics23%
Suppliers20%
Corporate23%
Adminstrative expenses
34%
A Closer look at synergies – Bertin S.A.
26
Captured Synergies
R$154 MillionExports
Maximization of sales channels and reviewing contracts for freight
R$31mm
Total R$331mm
Descrição
2010
On going Synergies
HidesCapturing value with the greatest volume of processed
R$45mm 2010
Size Time
SuppliersReview of terms of contract non-core suppliers (ex packaging)
R$10mm 2010
Industrial ProcessesOptimization of fixed costs and
streamlining of existing
contracts
R$245mm 2 Years
Source: JBS
JBS already captured R$ 154 million in synergies due to the merger with Bertin of a total
estimated amount R$ 485 million.
The next graphic shows the origin of the captured synergies.
Administrative expenses
26%
Exports45%
Logistics13%
Suppliers16%
27“In God We Trust, Nature We Respect”
IR Contacts:
+55 11 3144 4447
www.jbs.com.br/ir