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JBS S.A.“In God we trust, Nature we respect”
October, 2009
Largest Multi-Protein Company in the World
Our ValuesThe Foundation Of Our Culture
Planning
Determination
Discipline
Availability
Openness
Simplicity
1
88
The Global Beef Industry
Global Market
Largest beef importers
Others38%
South Korea4% EU-27
8%
Japan10%Mexico
5%
United States19%
Russia16%
Source: USDA 2009
Largest beef consumers
Others31%
Mexico4%
China10%
Brazil13%
Argentina5%
United States22%
EU-2715%
Largest beef exporters
Others25%
New Zealand7%
India8% United States
11%
Canada7%
Brazil23%
Australia19%
Largest beef producers
Others31%
India4%
China10%
EU-2714%
Argentina5%
United States21%
Brazil15%
3
Meats Consumption Per capita (including beef, pork and poultry)
48
6269
8088
121
42
82
0
20
40
60
80
100
120
140
China
Russi
a
Mexico
EU-27
Brazil US
Worl
d
Develo
ped
Source: FAO
Per
cap
ita c
onsu
mpt
ion
(kg/
capi
ta)
Recommended Recommended consumption consumption 80Kg/capita80Kg/capita
4
Source: UN (United Nations) and USDA*UN Estimates**Beef consumption trend considering CAGR of 2.0% (from 1960 to 2008)
World Population Growth and Beef Consumption (1960 – 2050)
0
2000
4000
6000
8000
10000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050*
Popu
latio
n (m
illio
n)
0
20
40
60
80
100
120
140
Con
sum
ptio
n (m
illio
n to
ns)
Population - Developed countries Population - Developing countries Beef Consumption**
CAGR 2,0%
Population growth, a beef Population growth, a beef consumption driver.consumption driver.
5
Per capita food consumption (Kg / Year)
6
0
20
40
60
80
100
120
140
160
180
Cereals Roots andTubers
Beans, Peasand Lentils
Sugar Oils Cropsand its
products
Meat Milk and itsproducts
1969/711979/811989/911999/0120302050
Source: FAO
88
Our Strategy
OUR STRATEGY
- Access to raw material supply globally.
- Leader in countries with surplus production.
- Scale.- Leader in exports globally.- Access to all meat markets.- Exchange of best practices.- Efficiency cost gains.- Cost reduction
opportunities.- Margin improvements.
- Access to raw material supply globally.
- Leader in countries with surplus production.
- Scale.- Leader in exports globally.- Access to all meat markets.- Exchange of best practices.- Efficiency cost gains.- Cost reduction
opportunities.- Margin improvements.
- Integrate the sales and distribution platform to serve efficiently, local and external markets, small retailers, food processors, restaurants, and other customers globally.
- Sales force distributed over the globe.
- Efficiency on selling the best product, to the best market, with the best price.
- Cost reduction on sales and transport.
- Margin improvements.
- Integrate the sales and distribution platform to serve efficiently, local and external markets, small retailers, food processors, restaurants, and other customers globally.
- Sales force distributed over the globe.
- Efficiency on selling the best product, to the best market, with the best price.
- Cost reduction on sales and transport.
- Margin improvements.
- High liquidity level.- Debt equalized to cash
generation.- Strong cash position.- Access to international
capital markets to finance growth.
- Development of long term financing plan.
- Use of export platform to grow.
- Hands-on working capital management.
- High liquidity level.- Debt equalized to cash
generation.- Strong cash position.- Access to international
capital markets to finance growth.
- Development of long term financing plan.
- Use of export platform to grow.
- Hands-on working capital management.
South AmericaSouth America
North AmericaNorth America
AustraliaAustralia
European UnionEuropean Union
AsiaAsia
RussiaRussia
AfricaAfrica
Middle EastMiddle East
South AmericaSouth America
North AmericaNorth America
AustraliaAustralia
European UnionEuropean Union
Debt forWorkingCapital
Debt forWorkingCapital
Equity toFinanceGrowth
Equity toFinanceGrowth
Cooked ProductsCooked Products
Case ReadyProducts
Case ReadyProducts
Global BrandsGlobal Brands
MarketingInvestmentsMarketing
Investments
Minced ProductsMinced Products
Fresh ProductsFresh Products
Cured ProductsCured ProductsReady to Eat
ProductsReady to Eat
Products
- High technology investments to produce value added products.
- Increase value added products portfolio.
- Customized products to each market.
- Convenience to consumers day to day.
- Brand and Quality recognition and leadership.
- Marketing investments to be present in consumer minds.
- Margin improvements.
- High technology investments to produce value added products.
- Increase value added products portfolio.
- Customized products to each market.
- Convenience to consumers day to day.
- Brand and Quality recognition and leadership.
- Marketing investments to be present in consumer minds.
- Margin improvements. 8
OUR STRATEGY
FoundationFoundation
FinancialStructureFinancialStructure
ExperiencedManagementExperiencedManagement
Cost Reduction,Productivity,
Process Optimization
Cost Reduction,Productivity,
Process Optimization
RiskManagement
RiskManagement
ConsolidatedAverageEBITDAMargin
4%
8%
12%
50%
9
• JBS’ History has been built through more than 30 acquisitions in 15 years with appropriated capital structure and management
JBS’ History
10
Cáceres
(Frigosol)
Iturama
(Frigosol)
Araputanga
(Frigoara)
Barretos (Anglo)
Pres. Epitácio (Bordon)
Campo Grande (Bordon)
Pedra Preta
(Frigo Marca)
Rosário
(Swift ARG)
San Jose
(Swift ARG)
Inalca
Swift Foods Co.
Maringá (Amambay)
Berazategui
(Rio Platense)
Colonia Caroya
SB Holdings
JV Beef Jerky
Venado
Tuerto
Pontevedra
(CEPA)
Rio Branco
Cacoal 1
Cacoal 2
Porto Velho
Vilhena (Frigovira)
Andradina
(Sadia)
Barra do
Garças
(Sadia)
Tasman
Smithfield
Beef
Five Rivers
R$/US$ end of the year quotation
Bertin Association*
Pilgrim’s Pride*
JBS Hides
5 new units
(1) (2) (3)
Net Sales (in US$ billion)
Companies and assets acquired
Source: JBS(1) Pro Forma JBS S.A. LTM Dec07(2) Pro Forma JBS S.A. LTM Dec08(3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrim’s Pride Sep09 (Estimated); Bertin LTM Jun09* Transactions subject to customary conditions for this type of business
0.3 0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 1.9
12.7
19.8
30.3
1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
JBS’ main units and marketsJBS’ main units and markets
x =
x=
Legend
Slaughterhouse (Beef)Slaughterhouse and IndustryDistribution CenterVegetable Canning PlantBeef Canning PlantBeef Jerky Plant (Beef Snack’s)Slaughterhouse (Pork)Slaughterhouse (Lamb)Beef and Pork Processing PlantWet Blue Processing PlantHeadquarters OfficeFeed LotPackage IndustryInland Container TerminalCommercial Office
Global Production and Distribution Platform
11
Production Units Employees
28.600 B
48.500 P
4.500 S
8.690 B
15.000 S
73.940 B
48.500 P19.500 S
JBS Argentina
JBS USA
6
16
JBS Brasil 25 16.993 26.950
55.361
10
8 3.000
JBS Australia
Inalca JBS
Total JBS 65
Daily Slaugther Capacity
2.019
6.995
24.295
B
B
B
6.700 5.059
Global Production Platform
Additional Distribution Platform
AlgeriaAngola Congo PolandRussia Dem. Rep. of the Congo
(B) Beef; (P) Pork; (S) Smalls;
United Kingdom
Brief Description
12
JBS Consolidated Net Revenue Distribution
Source: JBS
Italy4% Argentina
2%
Brazil16%
Beef USA54%
Pork USA13%
Australia11%
Revenue Distribution by Market 2Q09Revenue Distribution by Market 2Q09
13
Sustainability Policies
JBS is aware of its responsibilities as the largest beef Company in the world and all the impacts its operations generates in every region. The Company has a appropriate sustainability program in each of its units including:
Environmental Policy
Procedures Adopted
Informative Policy
Community Relationship and Environmental Investments
Sustainability
Sustainability Principles
• Ecological feasability
• Ecological correctness
• Social concern
• Cultural acceptance
Priorities
• Sustainable use of materials
• Partnership with organizations equally concerned
• Health and Quality of Life
• Climate
• Waste
Actions
50% Effluent reutilization
50% Solid waste recycling
Energetic Matrix development
Use of certified wood
25% Consume reduction
Flora conservation
Animal origination control
Laws Legislative compliance
Environmental awareness
Physical activities
Health Care
Formal education
Emiss
ions
, Effl
uent
s an
d W
aste
Ener
gyReduction of Greenhouse Gases emission (GHG)
Wat
er 35% Consume reduction (2m3 per head)
Soci
ety
Biod
iver
sity
Mat
eria
ls Focus on environmentally friendly materials
JBS is the first and only beef Company to register a CDM project at the UNFCCC (United Nations Framework Convention on Climate Change). The project is in validation phase at the designated national authority.
Natural Resources Usage
Social-environmental Actions
Waste Treatment
The environmental and social responsibility have always been part of JBS´s development and business growth. The Company’s extensive experience proves the importance of the reduction of environmental impacts and the improvement of its relations with the community, throughout constant investments that focus these issues. 14
Novo Mercado
JBS is part of the of BM&FBOVESPA´s Novo Mercado, is in accordance with all requirements of this market and with the obligations imposed by the current Brazilian legislation.
Management and Board of Directors
Board of Directors - JBS’ Board of Directors is formed by 7 members – a president, a vice-president, 2 effective councils without specific denomination and 3 independent effective councils.
Audit Board - The Audit Board shall consist of at least 3 and at most five 5 sitting members and alternates in the same number, shareholders or not, liable to be elected or dismissed at any time of the General Meeting.
Board of Executive Officers - The members of the Company’s board of executive officers are elected by the board of directors, for three-year terms, and are eligible for reelection.
Board of Directors’ Committees
The Board of Directors has approved the establishment of the following Committees: Audit, Financial, Personnel Management and Corporate Strategy, that incorporates the Sustainability matters.
Publishing and Use of Information
JBS is completely in accordance with the CVM 358 instruction that revised and consolidated the requirements regarding the disclosure and use of information related to material facts and acts of publicly held companies, including the disclosure of information in the trading and acquisition of securities issued by publicly held companies.
Conduct and Ethic Manual
JBS Executive Officers have developed a Conduct and Ethic Manual according to the corporate governance best practices concept. The conduct code embraces the relationship between the members of the board, shareholders, employees, suppliers and all the other stakeholders.
Corporate Governance
JBS has embraced a Corporate Governance model with a view to implant the best practices in the Company. The view is that the model demonstrates transparency and confidence to the public, guaranteeing the best products and services for customers, solidity for
suppliers, satisfactory return for shareholders and the certainty of a better future for all JBS collaborators.
15
The Bank of New York Mellon, has been selected by JBS S.A. as the depositary bank for its American depositary receipt (ADR) program. Each JBS ADR represents two common shares and they are traded on the over-the-counter market under the symbol “JBSAY“.
The new program did not represent an increase in the share capital or issuance of new shares.
This step represents an opportunity to increase the liquidity, visibility and value of JBS shares.
The Company believes that the program will help readjusting the share price to its reasonable currency level, considering that more than 80% of the Company’s revenue is in American Dollars.
In May 2009, JBS became the first Brazilian Company to have its ADRs traded under de OTCQX, a kind of “Novo Mercado” of the North American over-the-counter market. This pioneer step reflected as an increase of 331% in the average daily traded volume of JBS’(JBSAY) stocks in New York.
ADRs’ traded volume (JBSAY)
JBS American Depositary Receipt (JBSAY)
11.000 12.900 16.300 18.80028.800
70.770
85.370
0
20.000
40.000
60.000
80.000
100.000
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-0916
JBS American Depositary Receipt (JBSAY)
17
88
Acquisition of Pilgrim’s Pride Corp. and Association with Bertin S.A.
Combined Financials
Source: Companies
(1) Pro forma figures
(2) Fiscal year from October to September
(3) Does not include Mexican operation
(4) Does not include capital increase
(5) Considering US$2.5 billion capital increase in JBS USA
JBS S.A Pilgrim's Pride Bertin S.A. Combined
logo logo logo
R$ million Jun 2009 FY09E Jun 2009 TOTAL
ResultsNet Sales LTM 38,680 14,778 7,224 60,683
Ebitda LTM 1,482 469 776 2,727
Ebitda Margin 3.8% 3.2% 10.7% 4.5%
Gross Indebtedness 6,226 4,914 4,628 15,768
Cash and cash equivalents 2,299 496 702 3,496
Net Debt 3,928 4,418 3,926 12,272
Net Debt / Ebitda 2.6 9.4 5.1 4.5
Net Debt Pro Forma / Ebitda -0.6 9.4 5.1 2.7
(1)
(1)
(2)
(5)
(3)
(3)
(4)
19
Combined company will have a leading position in the global marketCombined company will have a leading position in the global market
Creation of the largest protein company in the world
1a largest global protein company
28,725 28,130
12,717 12,488 12,088 10,494 9,4576,755
Source: Companies, Exame, Valor Econômico and CNN (Global 500)1 Based in net revenues of 2008 and including Pilgrim’s Pride in Bertin + JBS
Global ranking of protein companies (US$ million)1
20
Brazil / Argentina / Italy / Australia / U.S.A. / Uruguay / Paraguay
Brazil: 43,400 heads/day
Latin America: 6,700 heads /day
U.S.A.: 28,600 heads/day
Italy: 3,000 heads/day
Australia: 8,690 heads/day
Total: 89,790 heads/day
Brazil: 39
Latin America: 8
U.S.A.: 13
Italy: 8
Australia: 10
Total: 82
U.S.A. / Mexico
U.S.A. / Mexico:
7.2mm birds/day
Total: 7.2mm birds/day
U.S.A.: 34
Mexico: 3
Total: 37
U.S.A.
U.S.A.: 48,500 heads/day
U.S.A.: 3
Brazil / U.S.A. / China
Brazil: 148,500 m2/day
Brazil: 12
Brazil
Brazil: 1,266 ton/day
Brazil: 7
BeefBeef
PoultryPoultry
PorkPork
LeatherLeather
DairyDairy
1
RankingRanking Installed capacityInstalled capacity Industrial unitsIndustrial units
Leader company in the protein industry
2
3
1
3
PresencePresence
21
Slaughterhouses and Industry
Distribution Centers / Commercial Offices
Processed products
Pork
Ovine
Leather
Poultry
Beef
Distribution centers
Leather
Dairy
Vegetable fat
Pet products
Source: Companies
X
Presence in over 23 countries across five continentsPresence in over 23 countries across five continents
Expansion of global leadership and geographic diversification
22
Strategic Rationale
• Opportunity to enter in the poultry industry as one of the largest companies in the world (Net revenues of US$8.5bn in FY 2008)
• Integrated distribution of Pilgrim’s Pride is aligned with JBS direct distribution strategy
• Potentially higher margins
• Traditional brands
• US$200m/year of potential synergies
• Capacity of adding value through turnaround process by the implementation of better operating and managerial practices
• JBS USA exports growth23
• Diversification into new segments with significant presence in the dairy industry
• Creation of the largest leather processing company
• Potential gains of scale, with estimated synergies of R$ 500 million / year
• Expansion of distribution channels (Retail and Food Service)
• Optimization of the industrial assets due to its geographic complementarity
Pilgrim’s Pride Acquisition Bertin S.A. Association
Source: Companies’ estimates
Complementary companiesComplementary companies
Creation of the largest protein company in the world
Total revenues of approx. US$30 billion
Global processing capacity:
- Beef: 90.4 thousand heads/day
- Pork: 48.5 thousand heads/day
- Poultry: 7.2 million birds/day
- Smalls: 19.5 thousand heads/day
- Leather: 148,500 m2/day
- Dairy: 1,266 tons/day
Leader in beef processing in Brazil, Australia, Argentina and Italy and one of the leaders in the US
Third largest pork processor in the US
Leading company in the poultry industry in the US and in the world
Global leader in leather tanning
24
Bertin and JBS controlling shareholders will contribute to a new Holding company their stakes of 73% and 51%, respectively
It is estimated that the respective equity value of Bertin and JBS should be in a proportion of approximately 40%-60%
Estimated synergies of R$ 500 million/year
Customary precedent conditions, including:
- Approval by the competent antitrust authority
- Due Diligence
Transaction summary
Pilgrim’s Pride acquisitionPilgrim’s Pride acquisition Association with Bertin S.A.Association with Bertin S.A.
Firm value of US$2.8 billion
Initial acquisition by JBS S.A., through its JBS USA subsidiary, of new issued shares representing 64% of Pilgrim’s Pride total capital
Estimated synergies of US$200 million/year
Customary precedent conditions, including:
- Approval by the competent antitrust authority
- Final approval of the Reorganization Plan in the Bankruptcy Court (Chapter 11 of the United States Bankruptcy Code)
JBS is in an advanced negotiation for a capital increase of US$2.5 billion in JBS USA, resulting in a maximum stake of 26.3% after the
capitalization
25
Batista Family
Bertin Family
ControllingHolding
Market including BNDES
JBS S.A.
Bertin JBS U.S.A. Includes AUS
Pilgrim’s Pride
Market including BNDES
JBS S.A.
51.4%
Ownership structures before transactions
Batista Family
48.6%
Bertin Family BNDESPAR
Bertin
73.1% 26.9%
Pilgrim’s shareholders Float
Pilgrim’s Pride
35% 65%
Ownership structure post transactions
Ownership structure post transactions
Investor
Other subsidiaries
~60% ~40% **
* Controlling shareholders’ estimates
100% ≥73.7%
≤26.3%
64% Old shareholders
36%
26
One of the largest producers of chicken with extremely well-known brands in this industry
Plants in the US, Mexico and Porto Rico
Vertically integrated company
Chicken production in 2008: – 3.8 million tons
Slaughterhouses: – 33 in the US, 3 in Mexico and 1 in Puerto Rico
Employees: ~ 41 thousand
Distribution centers:– 6 in the US, 18 in Mexico and 1 in Puerto Rico
ProfileProfile Recent EventsRecent Events
Net revenues (US$ million)Net revenues (US$ million) EBITDA (US$ million) and margin (%)EBITDA (US$ million) and margin (%)
7,095
5,153
7,4998,525
FY06 FY07 FY08 FY09E
-821
414
143 225
2.8%5.5%
-9.6%
3.2%
FY06 FY07 FY08 FY09E
Source: 10K, 10Q and Pilgrim’s Pride Plan of ReorganizationPilgrim’s Pride fiscal year is from October to September* Does not include Mexico operations
**
Dec. 2006: Acquisition of Gold Kist for US$ 1.1 bn
May 2008: Public Primary Offering of 7.5 million shares at US$24/share (total of US$180m), aiming to reduce leverage
Nov. 2008: Rating downgraded by S&P
Dec. 2008: Company files for Chapter 11 (Bankruptcy protection)- Company was delisted from NYSE and started
to be traded over-the-counter
Feb. 2009: Shares reach their lowest historical price of US$0.15/share
Pilgrim’s Pride overview
27
Footprint expansion in North America
Pilgrim’s Pride Acquisition will strengthen JBS’ presence in North AmericaPilgrim’s Pride Acquisition will strengthen JBS’ presence in North America
Subtitle
JBS USA production unitsJBS USA distribution centerPilgrim’s Pride production unitsPilgrim’s Pride distribution center
TXAL
MS
FL
SC
NC
VA
MD
PA
NY
INIL
WI
IA
SD
NE
KS
OK
MOKY
TN
NMAR
LA
CO
AZ
UTNV
WYID
MT
OR
WA
CA
ND
MN
MI
OH
WV
NJ
VTNH
ME
MACTRI
DE
GA
MEXICO
D
D
D
D
D
D
D
D
D
D
DD D
D
DD
D D
DD
D
D
D
D
D
D
D
D
DD
DD
D
D
28D
Established in 1977, Bertin has 38 production units and 28 thousand employees- Present in the beef, dairy, leather and pet
product segments with several nationwide well-known brands, e.g. Bertin, Vigor, Leco and Danúbio
- Units in Brazil, Uruguay, Paraguay and China
- Exports to more than 110 countries
Production Capacity:- 16,450 head/day (2009E)- 21,400 hides/day (2009E)
DescriptionDescription Net Sales Breakdown (R$ million)Net Sales Breakdown (R$ million)
Net Sales (R$ million)Net Sales (R$ million) EBITDA (R$ million) and margin (%)EBITDA (R$ million) and margin (%)
7,2246,626
5,188
2007 2008 LTM
776694687
13.2%
10.5% 10.7%
2007 2008 LTM
Source: Bertin
Jun09
68%
12%
7%
13%
Beef Leather Dairy Others
2008
Bertin Overview
Jun09
29
The combined production units places JBS at the forefront in South AmericaThe combined production units places JBS at the forefront in South America
Combined companies
SP
MGMSGO
RJ
Brazil
MTRO
AC
PR
SF
ER
BA
CO
Argentina
Uruguay
Paraguay
SC
BA
South America production base
PA
30
Final remarks of the Transactions
• Complementary activities and consolidation of the global leadership in the protein industry will be strengthened through the association between JBS S.A. and Bertin S.A.
• Entry in the poultry industry through one of the leading companies in the US industry
• Acceleration of direct distribution strategy through the IPO of JBS USA
• Appropriate capital structure
• Significant opportunity of adding value through synergy gains
• Proven track record in acquisitions, integration and restructuring of companies
• Resuming growth through acquisitions and partnerships
31
88
2st Quarter 2009 Results
JBS Consolidated Results
Net Revenue (R$ million)Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)EBITDA and EBITDA Margin (R$ million)
Source: JBS
EBITDA Margin (%)
295.0
470.5
265.9
211.5
384.0
4.1%
6.1%
2.3%2.8%
4.1%
2Q08 3Q08 4Q08 1Q09 2Q09
7,129.57,771.5
9,633.29,267.9 9,255.0
2Q08 3Q08 4Q08 1Q09 2Q09
-0.1%
81.5%
9.0%
59.5%
24.0%
-43.5%
-3.8%
-20.4%
33
Performance by Business Units
Net Sales(US$ million)
Net Sales(US$ million)
EBITDA (US$ mi) EBITDA margin
EBITDA (US$ mi) EBITDA margin
JBS USA (Beef)Including Australia
Net Sales(US$ million)
Net Sales(US$ million)
EBITDA (US$ mi) EBITDA margin
EBITDA (US$ mi) EBITDA margin
JBS USA (Pork)
Net Sales(€ million)
Net Sales(€ million)
EBITDA (€ mi)EBITDA margin
EBITDA (€ mi)EBITDA margin
INALCA JBS
Net Sales(R$ million)
Net Sales(R$ million)
EBITDA (R$ mi) EBITDA margin
EBITDA (R$ mi) EBITDA margin
JBS MERCOSUL
Source JBS
EBITDA Margin (%)
2.6
2.82.8
2.8
2.9
2Q08 3Q08 4Q08 1Q09 2Q09
104.6
59.7132.9
155.6
60.4
5.1% 5.6%
2.2% 2.2%3.6%
2Q08 3Q08 4Q08 1Q09 2T09
600682
620 526 554
2Q08 3Q08 4Q08 1Q09 2T09
24.7
7.5
19.9
52.1
25.6
4.5%
1.4%
4.3%
7.6%
3.2%
2Q08 3Q08 4Q08 1Q09 2T09
162143140
144 144
2Q08 3Q08 4Q08 1Q09 2T09
6.65.6
6.67.6
8.3
4.6%3.9%5.1%5.3%
4.7%
2Q08 3Q08 4Q08 1Q09 2T09
1.4
1.8
1.61.4
1.7
2Q08 3Q08 4Q08 1Q09 2T09
82.653.5199,1
102.258,2
5.6%
4.1%4.9%4.3%
3.7%
2Q08 3Q08 4Q08 1Q09 2T09
34
Debt
• Considering the seasonality with the production increase in a high moment of high demand for beef, the Company maintained its leverage on the same levels of the preview quarter.
• The Company has improved its net debt in comparison to the 1Q09. The short term debt decreased 47% in 1Q09 to 39% in 2Q09 against the total debt.
2.82.3
2.02.5 2.6
2Q08 3Q08 4Q08 1Q09 2Q09
Net Debt / EBITDA Pro Forma per Quarter
*
Net Debt = R$ 3,928MM
EBITDA pro forma = R$ 1,482 MM= 2.6
Source: JBSNet Debt/ EBITDA EBITDA pro-forma
* LTM including Smithfield Beef pro-forma.
Debt Profile
50% 47%39%
50% 53%61%
0%
20%
40%
60%
80%
100%
2Q08 1Q09 2Q09
Short term Long term
35
Cash and Availabilities
• Besides the cash and cash equivalents noted above, the US and Australia subsidiaries of the Company has availabilities of approximately US$ 560 million under their existing credit facilities that provide additional liquidity.
• Therefore the Company’s total liquidity including the availabilities under its credit facilities:
R$ Million 06/30/09 03/31/09 Var.%Net indebtedness 3,927.7 4,173.8 -5.9%Cash and cash equivalents 2,298.7 1,798.0 27.8%
Current 2,411.9 2,780.0 -13.2%Long term 3,814.5 3,191.8 19.5%
Gross indebtedness 6,226.4 5,971.8 4.3%
R$ Million 06/30/09Additional availability 1,092.9Cash and cash equivalents 2,298.7
Total Liquidity 3,391.6
36
Exports Distribution 2Q09
Source: JBS
JBS Consolidated Exports Distribution
Revenue Distribution by Market 2Q09
Exports Distribution 1Q09
Revenue Distribution by Market 1Q09
JBS Exports 1Q09: US$ 904.1 Million JBS Exports 2Q09: US$ 1,169.1 Million
Japan18%
E.U.15%
USA9%
Africa and Middle East
8%
Russia7%
Mexico7%
South Korea6%Canada
5%
Hong Kong5%
China4%
Taiwan2%
O thers14%
JBS Exports 2Q09US$ 1,169.1 Million
Japan16%
E.U.16%
USA11%Mexico
9%Russia
8%
South Korea6%
China5%Hong Kong
5%
Canada4%
Middle East4%
Taiwan2%
O thers14%
Domestic Market78%
Exports22%
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Domestic Market
74%
Exports26%
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.
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