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Presentation 4 q12

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JBS RI

This document provides a summary of results for JBS S.A. for 2012 and the fourth quarter of 2012. It includes the following key points in 3 sentences: JBS reported consolidated net revenue of R$75.7 billion for 2012, a 22.5% increase over 2011, with EBITDA of R$4.4 billion, a 40% increase over 2011. For the fourth quarter of 2012, JBS reported net revenue of R$21.9 billion, a 29% increase over the same period in 2011, with EBITDA of R$1.17 billion, a 26% increase over 4Q11. Leverage decreased to 3.4x at the end of 2012 from 4

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Results Presentation 2012 and 4Q12
JBS S.A.
Disclaimer This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of JBS. These are merely projections and, as such, are based exclusively on the expectations of JBS’ management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in JBS’ filed disclosure documents and are, therefore, subject to change without prior notice.. PAGE 3
JBS S.A. at a Glance JBS posted consolidated net revenue of R$75.7 billion, an increase of R$13.9 billion, 22.5% higher than 2011 EBITDA of R$4.4 billion, 40.0% above 2011 2012 adjusted net income of R$1.26 billion Proposed dividends of R$170.7 million in 2012 Positive operating cash flow of R$1.5 billion Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012, from 4.3x at 2T12 and 3.7x at 3T12. JBS ended the year with R$5.4 billion in cash or cash equivalent, corresponding to 90% of short-term debt. JBS USA has available committed lines of U$1.2 billion PAGE 4
Perspectives for the global animal protein market
World’s Food* Surpluses and Deficits Net intra-regional trade, million tonnes 150 100 50 Central Western Middle East America Europe Asia & Africa 0 North South Australia America America 50 Eastern Europe and former 100 Soviet Union 150 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 * Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. PAGE 6 Source: The Economist
Beef Production and Consumption Forecasts - 2000/2021 Global Scenario 76.5 CAGR¹ 1.2% 75.9 59.1 58.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Beef Production Beef Consumption Source: FAO PAGE 7 Note 1. Production and Consumption
Poultry Production and Consumption Forecasts - 2000/2021 Global Scenario 127.2 127.0 CAGR¹ 2.95% 69.4 69.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Poultry Production Poultry Consumption Source: FAO PAGE 8 Note 1. Consumption CAGR
Pork Production and Consumption Forecasts - 2000/2021 Global Scenario 126.2 125.4 CAGR¹ 1.6% 90.0 89.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Pork Production Pork Consumption Source: FAO PAGE 9 Note 1. Consumption CAGR
Meat Consumption Growth Forecast 2011-2020 Expected increase in meat demand by country groups Meat Consumption Forecast (Million tons) between 2010 - 2020 338.3 Developed 73.6 278.2 15.6 228.1 64.6 19% 58.6 12.7 126.6 11.2 105.7 81% 90.8 122.5 95.1 67.5 2001 Ave 2008-10 2020 Emerging Poultry Pork Sheep Beef Source: FAO - OECD PAGE 10
Global Protein Trade – Largest Exporters JBS is present in the main exporter markets Beef Exports Others 13% India* 20% Canada 5% Brazil 17% New Zealand 6% Mercosul** 9% USA 14% Australia 17% Chicken Exports Pork Exports Others 7% Others 4% Turkey 3 % Brazil 36% Chile 2% Argentina 3% USA 34% China 4% Thailand 5% Brazil 9% E.U. 12% Canada 17% E.U. 30% USA 34% Source: USDA 2012 (Estimated) PAGE 11 *Buffaloes / **Excluding Brazilian exports
Brazil, Australia and the US continue to lead global beef exports Brazilian Beef Exports (tons) 1.400.000 5.500 -4.4% 5.000 1.200.000 4.500 1.000.000 4.000 3.500 800.000 3.000 600.000 2.500 2.000 15.3% 400.000 1.500 1.000 200.000 500 0 0 2007 2008 2009 2010 2011 2012 Australian Beef Exports (tons) US Beef and Veal Exports (tons) 1.400.000 5.500 1.400.000 6.500 6.000 0.3% 5.000 15.6% 1.200.000 1.200.000 5.500 4.500 5.000 1.000.000 4.000 1.000.000 4.500 3.500 4.000 800.000 800.000 3.000 3.500 2.500 3.000 600.000 600.000 2.000 2.500 -12.3% 400.000 400.000 2.000 1.4% 1.500 1.500 1.000 200.000 200.000 1.000 500 500 0 0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Beef and Veal exports Average Price (US$/Ton) Source: USDA, MLA & Secex PAGE 12
Chicken Exports Brazil vs US Brazilian Chicken Exports (tons) USA Chicken Exports (tons) 1.900.000 2.200 4.500.000 1.800 4.000.000 1.600 1.800.000 3.500.000 1.400 10.1% 1.700.000 2.000 3.000.000 1.200 2.500.000 1.000 1.600.000 6.0% 2.000.000 800 1.500.000 1.800 1.500.000 600 -3.4% 4.1% 1.000.000 400 1.400.000 500.000 200 1.300.000 1.600 0 0 1S11 2S11 1S12 2S12 2007 2008 2009 2010 2011 2012 Chicken Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 13
Pork Exports Brazil vs US Brazilian Pork Exports (tons) USA Pork Exports (tons) 1.800.000 3.500 1.800.000 3.500 3.000 -2.9% 3.000 1.500.000 1.500.000 -8.2% 2.500 2.500 1.200.000 1.200.000 2.000 2.000 900.000 900.000 1.500 1.500 600.000 600.000 1.000 6.4% 1.000 300.000 14.4% 300.000 500 500 0 0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Pork Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 14
2012 and 4Q12 Highlights
2012 Highlights Net Revenue (R$ billion) EBITDA (R$ million) Net Income* (R$ million) 6500,0 8,0 1400,0 1,259.0 75.7 5500,0 5.1 5.8 1200,0 61.8 4,410.3 4500,0 1000,0 3500,0 3,151.0 800,0 600,0 23% 2500,0 40% 400,0 1500,0 -75.7 200,0 500,0 0,0 2011 2012 -500,0 2011 2012 -12,0 -200,0 2011 2012 -12 EBITDA margin (%) Gross Profit (R$ million) G&A (R$ million) Operating Cash Flow (R$ million) 4500,0 8,0 15000,0 14,0 4000,0 1800,0 3500,0 1,472.3 13000,0 11.5 12,0 2.8 2.7 10.8 3000,0 11000,0 10,0 1300,0 8,689.8 2500,0 9000,0 8,0 2,057.4 6,696.6 2000,0 1,739.2 7000,0 6,0 800,0 606.5 5000,0 4,0 1500,0 1000,0 3000,0 2,0 300,0 500,0 1000,0 0,0 0,0 -12,0 -1000,0 2011 2012 -2,0 2011 2012 2011 2012 -200,0 -12 Gross Margin (%) G&A / Revenue (%) Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012. PAGE 16 *Adjusted (excluding deferred income tax liabilities generated due to goodwill at the holding Company).
4Q12 Highlights Net Revenue (R$ billion) EBITDA (R$ million) Net Income* (R$ million) 2000,0 8,0 350,0 21.9 1800,0 5.6 310.4 5.4 1600,0 300,0 16.9 1400,0 250,0 1,170.9 1200,0 1000,0 940.6 200,0 800,0 150,0 29% 600,0 26% 100,0 400,0 50,0 25.6 200,0 0,0 -12,0 0,0 -12 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 EBITDA margin (%)  Operating Cash Flow of R$796 million  R$322.1 million Free Cash Flow PAGE 17 *Adjusted (excluding deferred income tax liabilities generated due to goodwill at the holding Company).
JBS Consolidated Results – 4Q12 EBITDA Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin 21,850.7 1800,0 8,0 7.1 19,366.6 1600,0 5.6 5.5 5.4 18,468.3 4.3 1,378.8 16,934.5 1400,0 16,011.1 1,170.9 1200,0 12.8% 1,012.8 15.3% 4.9% 1000,0 940.6 -5.5% 800,0 696.5 -15.1% -26.0% 45.4% 36.1% 600,0 400,0 200,0 0,0 -12,0 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 18
Quarterly Analysis Performance by Business Unit JBS Mercosul JBS USA JBS USA JBS USA (PPC) (Including Australia and Canada) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) 4.9 1300,0 5.3 1220,0 1140,0 955.5 4.5 923.1 855.4 844.0 846.1 1060,0 2.1 2.2 4.3 4.3 980,0 2.0 4.6 900,0 1.8 1.9 4.1 820,0 4.3 740,0 660,0 3.8 3.8 580,0 500,0 420,0 340,0 260,0 180,0 100,0 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million) 500 16,0% 500 10,0% 5.5% 6.4% 5.1% 14,0% 13.3% 14.6% 14.5% 12,0% 200,0 12.6% 900,0 16,0% 3.1% 10,0% 13,0% 10.7% 400 5.0% 4.1% 8.3% 1.2% 5,0% 6.5% 14,0% 8,0% 400 5.8% 4.8% 4.5% 800,0 2.1% 9,0% 6,0% 12,0% 700,0 630.3 665.6 664.8 10,0% -0.2% 4,0% 5,0% -1.1% 0,0% 2,0% 508.6 8,0% 300 0,0% 300 600,0 223.6 1,0% 6,0% -2,0% 500,0 407.7 4,0% -4,0% -3,0% -5,0% 400,0 2,0% 200 175.1 -6,0% -8,0% 100,0 77.0 -7,0% 200 0,0% -10,0% 55.8 49.2 104.0 125.7 105.6 300,0 -2,0% 103.3 -12,0% 40.4 42.7 -11,0% -10,0% 67.4 -14,0% -4,0% 100 200,0 -15,0% -16,0% 100 -45.4 -9.1 -6,0% 22.6 -15,0% -18,0% 100,0 -19,0% -8,0% -20,0% -22,0% 0,0 -10,0% 0 0,0 -23,0% -24,0% 0 -20,0% 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 -26,0% 4Q11 1Q12 2Q12 3Q12 4Q12 -100 -28,0% -30,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 19
JBS Mercosul Performance by Business Unit 24% % Net Revenue JBS S.A. Net Revenue (R$ billion)  Net revenue at JBS Mercosul came in at R$5,270.2 million in 4Q12, 39.5% 5.3 increase of 39.5% in comparison with 4Q11. 4.6 4.3 3.8 3.8  EBITDA totaled R$664.8 million in 4Q12, stable over the last quarter. 4Q11 1Q12 2Q12 3Q12 4Q12  EBITDA margin at JBS Mercosul was 12.6% in the quarter. EBITDA (R$ million) 13.3% 14.6% 14.5%  The Positive results of this business unit in 2012 reflect the 12.6% 900,0 16,0% 10.7% operational improvements and efficiencies implemented by the 14,0% 800,0 12,0% 700,0 630.3 665.6 664.8 10,0% 508.6 8,0% 600,0 management and reinforces the strategic view adopted. 6,0% 500,0 407.7 4,0% 2,0% 400,0 0,0% 300,0 -2,0% -4,0% 200,0 -6,0% 100,0 -8,0% 0,0 -10,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 20
JBS USA Beef (including Australia and Canada) 46% Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ billion)  Net revenue for this business unit was US$4,856.0 million in the 8.1% quarter. 4.9 4.5 4.3 4.3 4.1  EBITDA at JBS USA Beef unit totaled US$103.3 million in the period, with an EBITDA margin of 2.1%. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (US$ million)  Despite adverse market conditions, the Company improved its 500 16,0% 14,0% operating metrics through better management of working capital and efficiency gains and is strengthened to operate in a more 12,0% 10,0% 400 5.0% 4.1% 8,0% 2.1% favorable supply and demand scenario. 6,0% -0.2% 4,0% 300 -1.1% 2,0% 0,0% 223.6 -2,0% -4,0% 175.1 -6,0% 200  The reduction of restrictions imposed by Japan to import U.S. -8,0% -10,0% 103.3 -12,0% beef will promote U.S. exports and contribute to increase the -14,0% 100 -16,0% -45.4 -9.1 -18,0% -20,0% profitability per animal processed. -22,0% 0 -24,0% 4Q11 1Q12 2Q12 3Q12 4Q12 -26,0% -28,0% -100 -30,0% EBITDA Margin (%) Source: JBS PAGE 21
9% JBS USA Pork Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ million) 3.5%  Net revenue in the pork business for the quarter totaled 1300,0 US$955.5 million, an increase of 3.5% year on year. Compared to 1220,0 1140,0 955.5 1060,0 923.1 846.1 980,0 900,0 855.4 844.0 3Q12, there was a 12.9% growth. 820,0 740,0 660,0 580,0 500,0 420,0  EBITDA was US$42.7 million in 4Q12 with an EBITDA margin of 340,0 260,0 180,0 100,0 4Q11 1Q12 2Q12 3Q12 4Q12 4.5%. EBITDA (US$ million)  This quarter's results reflect an increase in the number of 200,0 animals slaughtered and better inventory management. 2012 result 13,0% 8.3% 6.5% 5.8% 4.8% 4.5% 9,0% 5,0% 1,0% -3,0% was impacted by increased sales volumes and lower sales prices. 100,0 77.0 -7,0% 55.8 49.2 40.4 42.7 -11,0% -15,0%  The highlight of the operation was exports, which increased by -19,0% 0,0 -23,0% 5.1% in 2012 compared to 2011. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 22
JBS USA Poultry (Pilgrim’s Pride Corporation) 21% Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ billion)  Net revenue in the 4Q12 for this business unit came in at US$2,189.7 million, 19.7% higher than the same period of 2011. 19.7% 2.1 2.2 1.9 2.0 1.8  Adjusted EBITDA in 4Q12 was US$67.4 million, 198.2% higher than 4Q11. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (US$ million) 500 10,0%  Net income in the 4Q12 was US$22.8 million, reversing the negative 400 5.5% 6.4% 5.1% 8,0% 6,0% US$85.4 million in 4Q11. 3.1% 4,0% 300 1.2% 2,0% 0,0% 200 104.0 125.7 105.6 -2,0% -4,0%  23% reduction in the PPC’s net debt between December 2011 to 100 22.6 67.4 -6,0% 2012, as a consequence primarily, from the US$200 million operating cash flow. -8,0% 0 -10,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 23
JBS Consolidated Exports Distribution in 2012 Approximately US$9.8 billion, an increase of 22.7% in relation to 2011 Mexico 14.6% Others 17.4% Taiwan 2.0% China, Hong Kong e Vietnan 14.0% Chile 3.1% US$9,830.2 Venezuela 3.3% million Japan 11.0% Canada 5.4% Korea 5.4% Africa e Middle East 10.3% E.U. 6.2% Russia 7.4% Source: JBS PAGE 24
Debt Profile
Debt Profile JBS’ net debt to EBITDA decreased to 3.4x in the 4Q12, substantially lower than in the first semester In January 2013, JBS issued a US$500.0 million Bond, due in 2023 and with a yield of 6.5% Leverage ST / LT Debt Profile 1500 5 1Q12 27% 73% 1300 4,30 4,27 1100 4,00 3,68 4 3,43 2Q12 23% 77% 900 3 700 500 2 3Q12 27% 73% 300 1 100 4Q12 30% 70% -100 4Q11 1Q12 2Q12 3Q12 4Q12 0 . Leverage EBITDA (R$ million) Short Term Long Term Breakdown by Currency and Company Bonds / Other JBS S.A. Subsidiaries 4Q12 59% 41% Bonds Others 4Q12 40% 60% 4Q12 R$ 26% USD 74% Source: JBS PAGE 26
Sustainability and Social Responsability
Cattle Traceability System Responsible Purchase JBS is committed to purchase cattle only from suppliers who respect and comply with the Company's social and environmental criteria.  We reject deforestation  We reject the invasion of indigenous lands and protected areas JBS’s Traceability System  We reject to working conditions analogous JBS has been developing, since 2010, to slavery an environmental system to monitor  We reject violence and conflicts in rural its cattle suppliers located in the areas Amazon bioma which is based on satellite images, geospatial data of farms and official information in order to analyze more than 30,000 cattle suppliers located in this region of the country. PAGE 28
Stakeholders JBS actively participates in the main discussion forums on sustainable livestock Stakeholders engagement JBS received top marks in 7 units of leather for environmental and sustainability practices in the production process by the international organization Leather Working Group (LWG). Totaling 7 units received gold medal and 2 Silver, all with "A" grade on traceability. PAGE 29
JBS Institute funds Germinare School Social Responsibility GERMINARE SCHOOL Started in 2010. Germinare School is a social initiative of the JBS Institute which looks at Education as the principal instrument to transform society. Purpose: to prepare well-educated and well-rounded citizens with a broad cultural repertoire, sound ethical values and a positive attitude toward life and society. Social Number of students: 450 (2013) Capacity of 630 students. Top Brazilian professors. Area: 6,000 m2 Sport complex, swimming pool, computer lab and chemistry lab. Selection process: tests and group dynamics. Amount invested: R$15 million Laboratory Source: JBS PAGE 30
Mission “To be best in 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 to all our employees.

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Presentation 4 q12

  • 1. Results Presentation 2012 and 4Q12
  • 3. Disclaimer This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of JBS. These are merely projections and, as such, are based exclusively on the expectations of JBS’ management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in JBS’ filed disclosure documents and are, therefore, subject to change without prior notice.. PAGE 3
  • 4. JBS S.A. at a Glance JBS posted consolidated net revenue of R$75.7 billion, an increase of R$13.9 billion, 22.5% higher than 2011 EBITDA of R$4.4 billion, 40.0% above 2011 2012 adjusted net income of R$1.26 billion Proposed dividends of R$170.7 million in 2012 Positive operating cash flow of R$1.5 billion Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012, from 4.3x at 2T12 and 3.7x at 3T12. JBS ended the year with R$5.4 billion in cash or cash equivalent, corresponding to 90% of short-term debt. JBS USA has available committed lines of U$1.2 billion PAGE 4
  • 5. Perspectives for the global animal protein market
  • 6. World’s Food* Surpluses and Deficits Net intra-regional trade, million tonnes 150 100 50 Central Western Middle East America Europe Asia & Africa 0 North South Australia America America 50 Eastern Europe and former 100 Soviet Union 150 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 * Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. PAGE 6 Source: The Economist
  • 7. Beef Production and Consumption Forecasts - 2000/2021 Global Scenario 76.5 CAGR¹ 1.2% 75.9 59.1 58.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Beef Production Beef Consumption Source: FAO PAGE 7 Note 1. Production and Consumption
  • 8. Poultry Production and Consumption Forecasts - 2000/2021 Global Scenario 127.2 127.0 CAGR¹ 2.95% 69.4 69.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Poultry Production Poultry Consumption Source: FAO PAGE 8 Note 1. Consumption CAGR
  • 9. Pork Production and Consumption Forecasts - 2000/2021 Global Scenario 126.2 125.4 CAGR¹ 1.6% 90.0 89.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E (million tons) Pork Production Pork Consumption Source: FAO PAGE 9 Note 1. Consumption CAGR
  • 10. Meat Consumption Growth Forecast 2011-2020 Expected increase in meat demand by country groups Meat Consumption Forecast (Million tons) between 2010 - 2020 338.3 Developed 73.6 278.2 15.6 228.1 64.6 19% 58.6 12.7 126.6 11.2 105.7 81% 90.8 122.5 95.1 67.5 2001 Ave 2008-10 2020 Emerging Poultry Pork Sheep Beef Source: FAO - OECD PAGE 10
  • 11. Global Protein Trade – Largest Exporters JBS is present in the main exporter markets Beef Exports Others 13% India* 20% Canada 5% Brazil 17% New Zealand 6% Mercosul** 9% USA 14% Australia 17% Chicken Exports Pork Exports Others 7% Others 4% Turkey 3 % Brazil 36% Chile 2% Argentina 3% USA 34% China 4% Thailand 5% Brazil 9% E.U. 12% Canada 17% E.U. 30% USA 34% Source: USDA 2012 (Estimated) PAGE 11 *Buffaloes / **Excluding Brazilian exports
  • 12. Brazil, Australia and the US continue to lead global beef exports Brazilian Beef Exports (tons) 1.400.000 5.500 -4.4% 5.000 1.200.000 4.500 1.000.000 4.000 3.500 800.000 3.000 600.000 2.500 2.000 15.3% 400.000 1.500 1.000 200.000 500 0 0 2007 2008 2009 2010 2011 2012 Australian Beef Exports (tons) US Beef and Veal Exports (tons) 1.400.000 5.500 1.400.000 6.500 6.000 0.3% 5.000 15.6% 1.200.000 1.200.000 5.500 4.500 5.000 1.000.000 4.000 1.000.000 4.500 3.500 4.000 800.000 800.000 3.000 3.500 2.500 3.000 600.000 600.000 2.000 2.500 -12.3% 400.000 400.000 2.000 1.4% 1.500 1.500 1.000 200.000 200.000 1.000 500 500 0 0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Beef and Veal exports Average Price (US$/Ton) Source: USDA, MLA & Secex PAGE 12
  • 13. Chicken Exports Brazil vs US Brazilian Chicken Exports (tons) USA Chicken Exports (tons) 1.900.000 2.200 4.500.000 1.800 4.000.000 1.600 1.800.000 3.500.000 1.400 10.1% 1.700.000 2.000 3.000.000 1.200 2.500.000 1.000 1.600.000 6.0% 2.000.000 800 1.500.000 1.800 1.500.000 600 -3.4% 4.1% 1.000.000 400 1.400.000 500.000 200 1.300.000 1.600 0 0 1S11 2S11 1S12 2S12 2007 2008 2009 2010 2011 2012 Chicken Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 13
  • 14. Pork Exports Brazil vs US Brazilian Pork Exports (tons) USA Pork Exports (tons) 1.800.000 3.500 1.800.000 3.500 3.000 -2.9% 3.000 1.500.000 1.500.000 -8.2% 2.500 2.500 1.200.000 1.200.000 2.000 2.000 900.000 900.000 1.500 1.500 600.000 600.000 1.000 6.4% 1.000 300.000 14.4% 300.000 500 500 0 0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Pork Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 14
  • 15. 2012 and 4Q12 Highlights
  • 16. 2012 Highlights Net Revenue (R$ billion) EBITDA (R$ million) Net Income* (R$ million) 6500,0 8,0 1400,0 1,259.0 75.7 5500,0 5.1 5.8 1200,0 61.8 4,410.3 4500,0 1000,0 3500,0 3,151.0 800,0 600,0 23% 2500,0 40% 400,0 1500,0 -75.7 200,0 500,0 0,0 2011 2012 -500,0 2011 2012 -12,0 -200,0 2011 2012 -12 EBITDA margin (%) Gross Profit (R$ million) G&A (R$ million) Operating Cash Flow (R$ million) 4500,0 8,0 15000,0 14,0 4000,0 1800,0 3500,0 1,472.3 13000,0 11.5 12,0 2.8 2.7 10.8 3000,0 11000,0 10,0 1300,0 8,689.8 2500,0 9000,0 8,0 2,057.4 6,696.6 2000,0 1,739.2 7000,0 6,0 800,0 606.5 5000,0 4,0 1500,0 1000,0 3000,0 2,0 300,0 500,0 1000,0 0,0 0,0 -12,0 -1000,0 2011 2012 -2,0 2011 2012 2011 2012 -200,0 -12 Gross Margin (%) G&A / Revenue (%) Leverage (net debt / EBITDA) decreased to 3.4x at the end of 2012. PAGE 16 *Adjusted (excluding deferred income tax liabilities generated due to goodwill at the holding Company).
  • 17. 4Q12 Highlights Net Revenue (R$ billion) EBITDA (R$ million) Net Income* (R$ million) 2000,0 8,0 350,0 21.9 1800,0 5.6 310.4 5.4 1600,0 300,0 16.9 1400,0 250,0 1,170.9 1200,0 1000,0 940.6 200,0 800,0 150,0 29% 600,0 26% 100,0 400,0 50,0 25.6 200,0 0,0 -12,0 0,0 -12 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 EBITDA margin (%)  Operating Cash Flow of R$796 million  R$322.1 million Free Cash Flow PAGE 17 *Adjusted (excluding deferred income tax liabilities generated due to goodwill at the holding Company).
  • 18. JBS Consolidated Results – 4Q12 EBITDA Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin 21,850.7 1800,0 8,0 7.1 19,366.6 1600,0 5.6 5.5 5.4 18,468.3 4.3 1,378.8 16,934.5 1400,0 16,011.1 1,170.9 1200,0 12.8% 1,012.8 15.3% 4.9% 1000,0 940.6 -5.5% 800,0 696.5 -15.1% -26.0% 45.4% 36.1% 600,0 400,0 200,0 0,0 -12,0 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 18
  • 19. Quarterly Analysis Performance by Business Unit JBS Mercosul JBS USA JBS USA JBS USA (PPC) (Including Australia and Canada) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) 4.9 1300,0 5.3 1220,0 1140,0 955.5 4.5 923.1 855.4 844.0 846.1 1060,0 2.1 2.2 4.3 4.3 980,0 2.0 4.6 900,0 1.8 1.9 4.1 820,0 4.3 740,0 660,0 3.8 3.8 580,0 500,0 420,0 340,0 260,0 180,0 100,0 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million) 500 16,0% 500 10,0% 5.5% 6.4% 5.1% 14,0% 13.3% 14.6% 14.5% 12,0% 200,0 12.6% 900,0 16,0% 3.1% 10,0% 13,0% 10.7% 400 5.0% 4.1% 8.3% 1.2% 5,0% 6.5% 14,0% 8,0% 400 5.8% 4.8% 4.5% 800,0 2.1% 9,0% 6,0% 12,0% 700,0 630.3 665.6 664.8 10,0% -0.2% 4,0% 5,0% -1.1% 0,0% 2,0% 508.6 8,0% 300 0,0% 300 600,0 223.6 1,0% 6,0% -2,0% 500,0 407.7 4,0% -4,0% -3,0% -5,0% 400,0 2,0% 200 175.1 -6,0% -8,0% 100,0 77.0 -7,0% 200 0,0% -10,0% 55.8 49.2 104.0 125.7 105.6 300,0 -2,0% 103.3 -12,0% 40.4 42.7 -11,0% -10,0% 67.4 -14,0% -4,0% 100 200,0 -15,0% -16,0% 100 -45.4 -9.1 -6,0% 22.6 -15,0% -18,0% 100,0 -19,0% -8,0% -20,0% -22,0% 0,0 -10,0% 0 0,0 -23,0% -24,0% 0 -20,0% 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 -26,0% 4Q11 1Q12 2Q12 3Q12 4Q12 -100 -28,0% -30,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 19
  • 20. JBS Mercosul Performance by Business Unit 24% % Net Revenue JBS S.A. Net Revenue (R$ billion)  Net revenue at JBS Mercosul came in at R$5,270.2 million in 4Q12, 39.5% 5.3 increase of 39.5% in comparison with 4Q11. 4.6 4.3 3.8 3.8  EBITDA totaled R$664.8 million in 4Q12, stable over the last quarter. 4Q11 1Q12 2Q12 3Q12 4Q12  EBITDA margin at JBS Mercosul was 12.6% in the quarter. EBITDA (R$ million) 13.3% 14.6% 14.5%  The Positive results of this business unit in 2012 reflect the 12.6% 900,0 16,0% 10.7% operational improvements and efficiencies implemented by the 14,0% 800,0 12,0% 700,0 630.3 665.6 664.8 10,0% 508.6 8,0% 600,0 management and reinforces the strategic view adopted. 6,0% 500,0 407.7 4,0% 2,0% 400,0 0,0% 300,0 -2,0% -4,0% 200,0 -6,0% 100,0 -8,0% 0,0 -10,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 20
  • 21. JBS USA Beef (including Australia and Canada) 46% Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ billion)  Net revenue for this business unit was US$4,856.0 million in the 8.1% quarter. 4.9 4.5 4.3 4.3 4.1  EBITDA at JBS USA Beef unit totaled US$103.3 million in the period, with an EBITDA margin of 2.1%. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (US$ million)  Despite adverse market conditions, the Company improved its 500 16,0% 14,0% operating metrics through better management of working capital and efficiency gains and is strengthened to operate in a more 12,0% 10,0% 400 5.0% 4.1% 8,0% 2.1% favorable supply and demand scenario. 6,0% -0.2% 4,0% 300 -1.1% 2,0% 0,0% 223.6 -2,0% -4,0% 175.1 -6,0% 200  The reduction of restrictions imposed by Japan to import U.S. -8,0% -10,0% 103.3 -12,0% beef will promote U.S. exports and contribute to increase the -14,0% 100 -16,0% -45.4 -9.1 -18,0% -20,0% profitability per animal processed. -22,0% 0 -24,0% 4Q11 1Q12 2Q12 3Q12 4Q12 -26,0% -28,0% -100 -30,0% EBITDA Margin (%) Source: JBS PAGE 21
  • 22. 9% JBS USA Pork Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ million) 3.5%  Net revenue in the pork business for the quarter totaled 1300,0 US$955.5 million, an increase of 3.5% year on year. Compared to 1220,0 1140,0 955.5 1060,0 923.1 846.1 980,0 900,0 855.4 844.0 3Q12, there was a 12.9% growth. 820,0 740,0 660,0 580,0 500,0 420,0  EBITDA was US$42.7 million in 4Q12 with an EBITDA margin of 340,0 260,0 180,0 100,0 4Q11 1Q12 2Q12 3Q12 4Q12 4.5%. EBITDA (US$ million)  This quarter's results reflect an increase in the number of 200,0 animals slaughtered and better inventory management. 2012 result 13,0% 8.3% 6.5% 5.8% 4.8% 4.5% 9,0% 5,0% 1,0% -3,0% was impacted by increased sales volumes and lower sales prices. 100,0 77.0 -7,0% 55.8 49.2 40.4 42.7 -11,0% -15,0%  The highlight of the operation was exports, which increased by -19,0% 0,0 -23,0% 5.1% in 2012 compared to 2011. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 22
  • 23. JBS USA Poultry (Pilgrim’s Pride Corporation) 21% Performance by Business Unit % Net Revenue JBS S.A. Net Revenue (US$ billion)  Net revenue in the 4Q12 for this business unit came in at US$2,189.7 million, 19.7% higher than the same period of 2011. 19.7% 2.1 2.2 1.9 2.0 1.8  Adjusted EBITDA in 4Q12 was US$67.4 million, 198.2% higher than 4Q11. 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA (US$ million) 500 10,0%  Net income in the 4Q12 was US$22.8 million, reversing the negative 400 5.5% 6.4% 5.1% 8,0% 6,0% US$85.4 million in 4Q11. 3.1% 4,0% 300 1.2% 2,0% 0,0% 200 104.0 125.7 105.6 -2,0% -4,0%  23% reduction in the PPC’s net debt between December 2011 to 100 22.6 67.4 -6,0% 2012, as a consequence primarily, from the US$200 million operating cash flow. -8,0% 0 -10,0% 4Q11 1Q12 2Q12 3Q12 4Q12 EBITDA Margin (%) Source: JBS PAGE 23
  • 24. JBS Consolidated Exports Distribution in 2012 Approximately US$9.8 billion, an increase of 22.7% in relation to 2011 Mexico 14.6% Others 17.4% Taiwan 2.0% China, Hong Kong e Vietnan 14.0% Chile 3.1% US$9,830.2 Venezuela 3.3% million Japan 11.0% Canada 5.4% Korea 5.4% Africa e Middle East 10.3% E.U. 6.2% Russia 7.4% Source: JBS PAGE 24
  • 26. Debt Profile JBS’ net debt to EBITDA decreased to 3.4x in the 4Q12, substantially lower than in the first semester In January 2013, JBS issued a US$500.0 million Bond, due in 2023 and with a yield of 6.5% Leverage ST / LT Debt Profile 1500 5 1Q12 27% 73% 1300 4,30 4,27 1100 4,00 3,68 4 3,43 2Q12 23% 77% 900 3 700 500 2 3Q12 27% 73% 300 1 100 4Q12 30% 70% -100 4Q11 1Q12 2Q12 3Q12 4Q12 0 . Leverage EBITDA (R$ million) Short Term Long Term Breakdown by Currency and Company Bonds / Other JBS S.A. Subsidiaries 4Q12 59% 41% Bonds Others 4Q12 40% 60% 4Q12 R$ 26% USD 74% Source: JBS PAGE 26
  • 28. Cattle Traceability System Responsible Purchase JBS is committed to purchase cattle only from suppliers who respect and comply with the Company's social and environmental criteria.  We reject deforestation  We reject the invasion of indigenous lands and protected areas JBS’s Traceability System  We reject to working conditions analogous JBS has been developing, since 2010, to slavery an environmental system to monitor  We reject violence and conflicts in rural its cattle suppliers located in the areas Amazon bioma which is based on satellite images, geospatial data of farms and official information in order to analyze more than 30,000 cattle suppliers located in this region of the country. PAGE 28
  • 29. Stakeholders JBS actively participates in the main discussion forums on sustainable livestock Stakeholders engagement JBS received top marks in 7 units of leather for environmental and sustainability practices in the production process by the international organization Leather Working Group (LWG). Totaling 7 units received gold medal and 2 Silver, all with "A" grade on traceability. PAGE 29
  • 30. JBS Institute funds Germinare School Social Responsibility GERMINARE SCHOOL Started in 2010. Germinare School is a social initiative of the JBS Institute which looks at Education as the principal instrument to transform society. Purpose: to prepare well-educated and well-rounded citizens with a broad cultural repertoire, sound ethical values and a positive attitude toward life and society. Social Number of students: 450 (2013) Capacity of 630 students. Top Brazilian professors. Area: 6,000 m2 Sport complex, swimming pool, computer lab and chemistry lab. Selection process: tests and group dynamics. Amount invested: R$15 million Laboratory Source: JBS PAGE 30
  • 31. Mission “To be best in 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 to all our employees.