Apresentação resultado eng final
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The document discusses JBS's position in the global animal protein market and competitive advantages. It shows that global consumption of animal protein has increased significantly in all regions over the past ten years. Brazil, Australia, and the US continue to lead global beef exports. JBS ranks as the largest global beef and lamb producer and leather processor, the second largest global chicken producer, the third largest dairy producer in Brazil, and third largest pork producer in the US. JBS's strategy focuses on quality, branding, and expanding globally through strategic acquisitions.
Apresentação resultado eng final
- 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
- 10. Performance 4Q10 Highlights showing organic growth and an increase of 294.3% in 2010 EBITDA compared to 2009
- 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$194.8 million and EBITDA margin of the 4Q09, and a record EBITDA 5.4%. margin of 12.8% in 4Q10. PAGE 11
- 12. JBS Consolidated Results – 4Q10 EBITDA Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million) 1800,0 8,0 14.116,3 14.069,6 14.319,6 1600,0 7,1 7,3 12.550,3 6,9 7,0 +1.8% 1400,0 -0.3% 6,0 6,0 1200,0 5,4 1.000 1.026 5,0 7.408,9 1000,0 862 866 +2.6% 4,0 +12.5% 800,0 -15.7% -69.4% + 16.0% 3,0 600,0 398 400,0 2,0 + 116.7% 200,0 1,0 0,0 0,0 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 EBITDA Margin (%) Source: JBS PAGE 12
- 13. Performance by Business Unit JBS Mercosul JBS USA JBS USA JBS USA (PPC) (Including Australia) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) 3,5 3,6 739 772 799 3,5 3,4 3,3 3,4 3,0 606 646 2,8 2,8 1,6 1,6 1,7 1,7 1,8 1,5 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 EBITDA (R$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin 11,9% 10,4% 12,8% 600 9,5% 12,0%400 12,0% 11,8% 400 9,9% 12,0% 7,7% 500 7,1% 10,0% 8,0% 10,0% 10,0% 7,5% 6,9% 10,0% 4,5% 6,0% 5,9% 5,4% 8,0% 6,6% 102,4 8,0% 352,6 334,5 363,7 6,0% 300 3,1% 6,0% 5,4% 90,8 300 4,0% 3,6% 6,0% 400 4,0% 100 4,7% 194,9 194,8 4,0% 5,0% 4,0% 300 238,8 2,0% 200 0,0% 170,5 2,0% 0,0% 200 170 2,0% 0,0% 126 48,7 0,0% 127,6 124,8 200 -2,0% 103,5 -2,0% -2,0% 117,6 -4,0% 100 -4,0% 28,6 34,9 -4,0% -5,0%100 64,9 59,5 100 -6,0% -6,0% -6,0% -8,0% -8,0% -8,0% 0 -10,0% 0 -10,0% 0 -10,0% 0 -10,0% 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 EBITDA Margin (%) Source: JBS PAGE 13
- 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.