4q11 conference call presentation
TRANSCRIPT
-
7/30/2019 4Q11 Conference Call Presentation
1/15
JBS S.A.
Results Presentation
2011 and 4Q11
-
7/30/2019 4Q11 Conference Call Presentation
2/15
JBS S.A.
-
7/30/2019 4Q11 Conference Call Presentation
3/15
3PAGE
JBS Ranking
3 Geographic andmarket segmentdiversification
1 Market Leader
4 Well-recognizedbrands
2 Track Recordof successfulacquisitions
Largest global beef andlamb producer1
st
Largest global leatherprocessor1
st
Largest global chickenproducer2
nd
Largest dairyproducer in Brazil3
rd
Largest pork producerin the US3
rd
Source: JBS
-
7/30/2019 4Q11 Conference Call Presentation
4/15
4PAGE
Well-recognized Brands, symbols of quality
3 Geographic andmarket segmentdiversification
1 Market Leader
4 Well-recognizedbrands
2 Track Record ofsuccessfulacquisitions
USA
Australia
Brazil
Argentina
http://www.vigor.com.br/vigor/foodservice/marca.php?idm=4&idc=0http://www.vigor.com.br/vigor/foodservice/marca.php?idm=6&idc=0 -
7/30/2019 4Q11 Conference Call Presentation
5/15
2011 and 4Q11 Highlights
-
7/30/2019 4Q11 Conference Call Presentation
6/15
6PAGE
JBS USA Beef, including Australia, presented revenue of US$16.5 billion in the year, an increase of 25.6% over 2010. The EBIT DAwas US$739.1 million, 11.4% higher than 2010.
JBS USA Pork business unit net revenue totaled US$3.5 billion, 17.5% higher than 2010. The EBITDA was US$338.2 million,22.2% higher when compared to the previous year.
JBS Mercosul posted net revenue of R$14.9 billion, an increase of 11.9% year over year. The EBITDA increased 23.9% over thesame period and was R$1.6 billion.
JBS generated net cash from operating activities in 2011 of R$606.5 million.
EBITDA was R$3.15 billion, a decrease of 16.3% over 2010, due to the negative result from Pilgrims Pride. The EBITDA marginwas 5.1%.
JBS posted consolidated net revenue of R$61.8 million, 13% higher than 2010.
2011 Highlights
The Company ended the quarter with R$5.3 billion in cash or cash equivalent, equivalent to 100% short-term debt.
The Indebtedness level remained stable at 3.0x, excluding PPC.
The loss in the period was R$75.5 million, caused by Pilgrims Pride (PPC) that represented US$495.7 million in 2011. Excludingthis item, net income would have been R$482.6 million approximately.
-
7/30/2019 4Q11 Conference Call Presentation
7/15
7PAGESource: JBS
JBS Consolidated Results 4Q11
EBITDANet Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)
865.7 835.9
587.7
786.6
940.6
6.0 5.7
4.0 5.1
5.6
-12,0
8,0
0,00
200,00
400,00
600,00
800,00
1000,00
1200,00
1400,00
1600,00
1800,00
4Q10 1Q11 2Q11 3Q11 4Q11
14,319.6 14,672.7
14,116.3
15,567.816,934.5
4Q10 1Q11 2Q11 3Q11 4Q11
-3.8% 10.3% +8.8%+2.5%
-29.7% +33.9% +19.5%-3.4%
EBITDA Margin (%)
-
7/30/2019 4Q11 Conference Call Presentation
8/15
8PAGESource: JBS
Yearly Analysis
Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ billion) Net sales (US$ billion)
EBITDA (R$ bi) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (US$ mi)
JBS Mercosul JBS USA
(Including Australia)
JBS USA JBS USA (PPC)
Performance by Business Unit
6.9 7.5
2010 2011
13.1
16.5
2010 2011
13.314.9
2010 2011
3.03.5
-
2010 2011
276.8338.2
9.4% 9.7%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
-
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
450,0
500,0
550,0
600,0
650,0
700,0
2010 2011
663.7 739.1
5.1% 4.5%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
800,0
900,0
1000,0
1100,0
1200,0
1300,0
1400,0
1500,0
1600,0
1700,0
1800,0
1900,0
2000,0
2010 2011
1.3
1.6
9.7%10.7%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0,0
0,5
1,0
1,5
2,0
2,5
2010 2011
481.9
7.0%
-2.0%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
(0,6)1,43,45,47,49,411,4
13,415,417,419,421,423,425,427,429,431,433,435,437,439,441,443,445,447,449,451,453,455,457,459,461,463,465,467,469,471,473,475,477,479,481,483,585,587,589,591,593,595,597,599,5
101,5103,5105,5107,5109,5111,5113,5115,5117,5119,5121,5123,5125,5127,5129,5131,5133,5135,5137,5139,5141,5143,5145,5147,5149,5151,5153,5155,5157,5159,5161,5163,5165,5167,5169,5171,5173,5175,5177,5179,5181,5183,5185,5187,5189,5191,5193,5195,5197,5199,5201,5203,5205,5207,5209,5211,5213,5215,5217,5219,5221,5223,5225,5227,5229,5231,5233,5235,5237,5239,5241,5243,5245,5247,5249,6251,6253,6255,6257,6259,6261,6263,6265,6267,6269,6271,6273,6275,6277,6279,6281,6283,6285,6287,6289,6291,6293,6295,6297,6299,6301,6303,6305,6307,6309,6311,6313,6315,6317,6319,6321,6323,6325,6327,6329,6331,6333,6335,6337,6339,6341,6343,6345,6347,6349,6351,6353,6355,6357,6359,6361,6363,6365,6367,6369,6371,6373,6375,6377,6379,6381,6383,6385,6387,6389,6391,6393,6395,6397,6399,6401,6403,6405,6407,6409,6411,6413,6415,6417,7419,7421,7423,7425,7427,7429,7431,7433,7435,7437,7439,7441,7443,7445,7447,7449,7451,7453,7455,7457,7459,7461,7463,7465,7467,7469,7471,7473,7475,7477,7479,7481,7483,7485,7487,7489,7491,7493,7495,7497,7499,7501,7503,7505,7507,7509,7511,7513,7515,7517,7519,7521,7523,7525,7527,7529,7531,7533,7535,7537,7539,7541,7543,7545,7547,7549,7551,7553,7555,7557,7559,7561,7563,7565,7567,7569,7571,7573,7575,7577,7579,7581,7583,8585,8587,8589,8591,8593,8595,8597,8599,8601,8603,8605,8607,8609,8611,8613,8615,8617,8619,8621,8623,8625,8627,8629,8631,8633,8635,8637,8639,8641,8643,8645,8647,8649,8651,8653,8655,8657,8659,8661,8663,8665,8667,8669,8671,8673,8675,8677,8679,8681,8683,8685,8687,8689,8691,8693,8695,8697,8699,8701,8703,8705,8707,8709,8711,8713,8715,8717,8719,8721,8723,8725,8727,8729,8731,8733,8735,8737,8739,8741,8743,8745,8747,8749,9751,9753,9755,9757,9759,9761,9763,9765,9767,9769,9771,9773,9775,9777,9779,9781,9783,9785,9787,9789,9791,9793,9795,9797,9799,9801,9803,9805,9807,9809,9811,9813,9815,9817,9819,9821,9823,9825,9827,9829,9831,9833,9835,9837,9839,9841,9843,9845,9847,9849,9851,9853,9855,9857,9859,9861,9863,9865,9867,9869,9871,9873,9875,9877,9879,9881,9883,9885,9887,9889,9891,9893,9895,9897,9899,9901,9903,9905,9907,9909,9911,9913,9915,9918,0920,0922,0924,0926,0928,0930,0932,0934,0936,0938,0940,0942,0944,0946,0948,0950,0952,0954,0956,0958,0960,0962,0964,0966,0968,0970,0972,0974,0976,0978,0980,0982,0984,0986,0988,0990,0992,0994,0996,0998,0
1.000,0
2010 2011
-149.8
-
7/30/2019 4Q11 Conference Call Presentation
9/15
9PAGE
Performance by Business Unit
Source: JBS
Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion)
EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million)
EBITDA Margin (%)
JBS Mercosul JBS USA
(Including Australia)
JBS USA JBS USA (PPC)
Quarterly Analysis
1.8 1.92.0 1.9 1.8
4Q10 1Q11 2Q11 3Q11 4Q11
3.63.8
4.0
4.2
4.5
4Q10 1Q11 2Q11 3Q11 4Q11
3.4
3.6 3.6
3.93.8
4Q10 1Q11 2Q11 3Q11 4Q11
799.4 837.0846.0
867.1923.1
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
4Q10 1Q11 2Q11 3Q11 4Q11
124.8
-55.2 -47.6 -31.422.6
6.9%
-2.9% -2.4% -1.7%1.2%
-200
-100
0
100
200
300
400
500
4Q10 1Q11 2Q11 3Q11 4Q11
238.8
308.6
427.9 453.8 407.77.1%
8.6%11.8% 11.6% 10.7%
-10,0%
-8,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
100
200
300
400
500
600
4Q10 1Q11 2Q11 3Q11 4Q11
194.8
269.7
44.7
184.1223.6
5.4% 7.1%1.1%
4.4% 5.0%
-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%
0
100
200
300
400
500
4Q10 1Q11 2Q11 3Q11 4Q11
102.4 105.383.6 75.9 77.0
12.8% 12.6%9.9% 8.8% 8.3%
-23,0%
-19,0%
-15,0%
-11,0%
-7,0%
-3,0%
1,0%
5,0%
9,0%
13,0%
-0,023
99,977
199,977
4Q10 1Q11 2Q11 3Q11 4Q11
-
7/30/2019 4Q11 Conference Call Presentation
10/15
10PAGESource: JBS
Revenue and EBITDA Distribution by Business Unit 2011
Net Revenue - 2011
EBITDA 2011
45%
25%20%
10%
50%
41%
19%
-10%
-
7/30/2019 4Q11 Conference Call Presentation
11/15
11PAGESource: JBS
Organic Growth
Each business unit presented double digit organic growth in their local currency, for the analyzed period.
JBS USA Beef Net Revenue (US$ million) JBS USA Chicken Net Revenue (US$ million)
JBS USA Pork Net Revenue (US$ million) JBS Mercosul Net Revenue (R$ million)
2.600
2.800
3.000
3.200
3.400
3.600
3.800
4.000
4.200
4.400
4.600
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q111.600
1.700
1.800
1.900
2.000
2.100
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
500
550
600
650
700
750
800
850
900
950
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q112.800
3.000
3.200
3.400
3.600
3.800
4.000
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
-
7/30/2019 4Q11 Conference Call Presentation
12/15
12PAGESource: JBS
JBS Consolidated Exports Distribution in 2011
Taiwan 2.0%
Canada 3.3 %
South Korea 4.6%
Russia 8.4%
Others 18.0%
E.U 8.8%
Africa and Middle East 17.4%
China, Hong Kong andVietnam 12.5%
Mexico 10.9%
Japan 10.2%
US$ 9,581.0million
Approximately US$ 9.6 billion in 2011
-
7/30/2019 4Q11 Conference Call Presentation
13/15
13PAGESource: JBS* subsidiary controlled by JBS with non-recourse debt.
Debt Profile
Net debt to EBITDA, excluding Pilgrims Pride Corp. (PPC)*, remained stable from 3Q11 at 3.0x.
Net debt to EBITDA, including Pilgrims Pride Corp. (PPC)*, remained stable from 3Q11 at 4.0x.
The Company ended the quarter with R$5.3 billion in cash or cash equivalents, equivalent to 100% of the Companys short-term debt.
Short Term Long Term
ST / LT Debt Profile
33%
30%
27%
28%
28%
67%
70%
73%
72%
72%
4Q10
1Q11
2Q11
3Q11
4Q11
The Company generated R$606,5 million of operating cash flow in 2011.
3.0 3.1
3.64.0 4.0x
0,0
1,0
2,0
3,0
4,0
-100
100
300
500
700
900
1100
1300
1500
4Q10 1Q11 2Q11 3Q11 4Q11
3.0 3.13.2
3.0 3.0x
0,0
1,0
2,0
3,0
4,0
. EBITDA. Leverage
Leverage
. Leverage Ex-PPC EBITDA Ex-PPC
-
7/30/2019 4Q11 Conference Call Presentation
14/15
14PAGE
Amazon
Environmental
Satellite image
Social & Environmental
Purpose: reduce deforestation in the Amazon Biome; avoidpurchasing cattle from Environmentally Protected Areas EPAs,Indigenous reserves and protected areas; eradication of slavelabor in Brazil.
JBS Brazil monitors a 100% of its cattle suppliers properties viasatellite geo-referencing (GPS monitoring).
After the property coordinates are collected, the data is keyed intoJBSs registry of cattle suppliers and is sent to an outsource companyto be analyzed by superimposing on a map constructed from satelliteimages and the DETER(1) and PRODES(2) produced by Brazils NationalInstitute for Space Research INPE.
JBS contains a database of almost 12,000 cattle ranches registeredin the Amazon Biome.
Satellite image monitoring of the Amazon Biome
JBS actions related to cattle traceability and the Amazon BiomeSustainability
Source: JBS Sustainability Policy(1)Real Time Deforestation Detection(2)Legal Amazon Deforestation Monitoring Project
JBS SA participates in CDP - Carbon Disclosure Project.
Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.
-
7/30/2019 4Q11 Conference Call Presentation
15/15
Mission
To be bestin what we set out to do, totally focusedonour business, ensuring the best products and services
for our customers, solidityfor our suppliers,satisfactory profitabilityfor our shareholders and the
certainty of a better future to all our employees.