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3rd Quarter 2009 Results November 16 th , 2009 JBS S.A. JBS S.A. JBS S.A

3rd Quarter 2009 Results

3rd Quarter 2009 Results November 16 th , 2009 JBS S.A. JBS S.A. JBS S.A .
3rd Quarter 2009 Results November 16 th , 2009 JBS S.A. JBS S.A. JBS S.A .

November 16 th , 2009

JBS S.A.

JBS S.A.

JBS S.A.

“In God we trust, nature we respect”

3rd Quarter 2009 Results November 16 th , 2009 JBS S.A. JBS S.A. JBS S.A .

Presenters

Joesley Mendonça Batista CEO
Joesley Mendonça Batista
CEO
Jeremiah O’Callaghan Investor Relations Director
Jeremiah O’Callaghan
Investor Relations Director

Our Values

The Foundation Of Our Culture

Planning

Determination

Discipline

Availability

Openness

Simplicity

Agenda Our Strategy Market Overview 3Q09 Highlights Final Considerations Questions and Answers 3

Agenda

Our Strategy
Our Strategy
Market Overview 3Q09 Highlights Final Considerations Questions and Answers
Market Overview
3Q09 Highlights
Final Considerations
Questions and Answers

3

Our Strategy 2005/2006 2009/2010 2011/2012 2007/2008 Adequate Financial Global Production Platform Structure

Our Strategy

2005/2006 2009/2010 2011/2012 2007/2008 Adequate Financial Global Production Platform Structure Global Sales
2005/2006
2009/2010
2011/2012
2007/2008
Adequate
Financial
Global Production
Platform
Structure
Global Sales &
Distribution
Platform
Value Added
Products &
Branding
Fresh Products
South America
South
Debt for
Working
America
North America
Cooked Products
Minced Products
Australia
North
Cured Products
Capital
America
European Union
Equity
Asia
Australia
Ready to Eat
Products
Case Ready
Products
to
Russia
Global Brands
Finance
Africa
European
Marketing
Union
Growth
Middle East
Investments
- High liquidity level.
- Access to raw material
supply globally.
- Debt equalized to cash
generation.
- High technology
investments to produce
value added products.
- Leader in countries with
surplus production.
- Strong cash position.
- Increase value added
products portfolio.
- Scale.
- Access to international
capital markets to finance
growth.
- Leader in exports globally.
- Integrate the sales and
distribution platform to
serve efficiently, local and
external markets, small
retailers, food processors,
restaurants, and other
customers globally.
- Customized products to
each market.
- Access to all meat
markets.
- Development of long term
financing plan.
- Sales force distributed over
the globe.
- Convenience to consumers
day to day.
- Exchange of best
practices.
- Use of export platform to
grow.
- Brand and Quality
recognition and leadership.
- Efficiency cost gains.
- Efficiency on selling the best
product, to the best market,
with the best price.
- Hands-on working capital
management.
- Cost reduction
opportunities.
- Cost reduction on sales and
transport.
- Marketing investments to
be present in consumer
minds.
- Margin improvements.
- Margin improvements.
- Margin improvements.
4

Our Strategy

50% Branding Value Added Products 12% Sales & Distribution Platform 8% Production Platform 4%
50%
Branding
Value
Added
Products
12%
Sales &
Distribution
Platform
8%
Production Platform
4%
Financial Experienced Cost Reduction, Productivity, Process Optimization Risk Structure Management Management
Financial
Experienced
Cost Reduction,
Productivity,
Process
Optimization
Risk
Structure
Management
Management
Foundation

Consolidated

Average

EBITDA

Margin

5

Agenda Market Overview 6
Agenda Market Overview 6
Agenda Market Overview 6

Agenda

Market Overview
Market Overview

6

Global Market

Largest beef producers Largest beef consumers
Largest beef producers Largest beef consumers

Largest beef producers

Largest beef consumers

Market Largest beef producers Largest beef consumers Others United States 31% 21% Brazil 15% India 4%
Market Largest beef producers Largest beef consumers Others United States 31% 21% Brazil 15% India 4%
Others United States 31% 21% Brazil 15% India 4% Argentina 5% EU-27 China 14% 10%
Others
United States
31%
21%
Brazil
15%
India
4%
Argentina
5%
EU-27
China
14%
10%

Largest beef exporters

Others 25% New Zealand 7% Canada 7% India United States 8%
Others
25%
New Zealand
7%
Canada
7%
India
United States
8%

11%

Brazil

23%

Australia

19%

Source: USDA 2009

Others 31% Mexico 4% Argentina Brazil 5% China 13%
Others
31%
Mexico
4%
Argentina
Brazil
5%
China
13%

10%

United States

22%

EU-27

15%

Largest beef importers

United States Others 19% 38% Russia 16% South Korea Japan 4% EU-27 10% Mexico 8%
United States
Others
19%
38%
Russia
16%
South Korea
Japan
4%
EU-27
10%
Mexico
8%
5%

7

World Population Growth and Beef Consumption (1960 – 2050)

World Population Growth and Beef Consumption (1960 – 2050)   10000 8000 Population (million)  
 

10000

  10000 8000 Population (million)   6000 4000 2000 0
8000

8000

  10000 8000 Population (million)   6000 4000 2000 0
Population (million)  

Population (million)

 

6000

  10000 8000 Population (million)   6000 4000 2000 0
  10000 8000 Population (million)   6000 4000 2000 0

4000

  10000 8000 Population (million)   6000 4000 2000 0
2000

2000

  10000 8000 Population (million)   6000 4000 2000 0
  10000 8000 Population (million)   6000 4000 2000 0
0

0

140 Population growth, a beef consumption driver. 120 100 80 60 40 20 0 Consumption
140
Population growth, a beef
consumption driver.
120
100
80
60
40
20
0
Consumption (million tons)

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050*

2005 2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050* Population - Developed countries Population -

Population - Developed countries

2035* 2040* 2045* 2050* Population - Developed countries Population - Developing countries Beef Consumption** Source:

Population - Developing countries

Beef Consumption**

Source: UN (United Nations) and USDA *UN Estimates **Beef consumption trend considering CAGR of 2.0%
Source: UN (United Nations) and USDA
*UN Estimates
**Beef consumption trend considering CAGR of 2.0% (from 1960 to 2008)

8

Per capita food consumption (Kg / Year)

Per capita food consumption (Kg / Year) 180 160 140 120 100 80 60 40 20

180Per capita food consumption (Kg / Year) 160 140 120 100 80 60 40 20 0

160 Per capita food consumption (Kg / Year) 180 140 120 100 80 60 40 20 0

140

120Per capita food consumption (Kg / Year) 180 160 140 100 80 60 40 20 0

100Per capita food consumption (Kg / Year) 180 160 140 120 80 60 40 20 0

80Per capita food consumption (Kg / Year) 180 160 140 120 100 60 40 20 0

60capita food consumption (Kg / Year) 180 160 140 120 100 80 40 20 0 1969/

40food consumption (Kg / Year) 180 160 140 120 100 80 60 20 0 1969/ 71

food consumption (Kg / Year) 180 160 140 120 100 80 60 40 20 0 1969/

20

0

1969/ 71 1979/ 81 1989/ 91 1999/ 01 2030 2050 Cereals Roots and Beans, Peas
1969/ 71
1979/ 81
1989/ 91
1999/ 01
2030
2050
Cereals
Roots and
Beans, Peas
Sugar
Oils Crops
Meat
Tubers
and Lentils
and its
Milk and its
products

products

Source: FAO
Source: FAO

9

US Beef and Veal Exports (Million Pounds)

Source: USDA ERS
Source: USDA ERS
US Beef and Veal Exports (Million Pounds) Source: USDA ERS 10

10

US Pork Exports (Million Pounds)

US Pork Exports (Million Pounds) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

5,000US Pork Exports (Million Pounds) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0  

4,500US Pork Exports (Million Pounds) 5,000 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0  

4,000

3,500US Pork Exports (Million Pounds) 5,000 4,500 4,000 3,000 2,500 2,000 1,500 1,000 500 0  

3,000US Pork Exports (Million Pounds) 5,000 4,500 4,000 3,500 2,500 2,000 1,500 1,000 500 0  

2,500Pork Exports (Million Pounds) 5,000 4,500 4,000 3,500 3,000 2,000 1,500 1,000 500 0   1,560

2,000 Exports (Million Pounds) 5,000 4,500 4,000 3,500 3,000 2,500 1,500 1,000 500 0   1,560 1,278

1,500

1,000Pounds) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 500 0   1,560 1,278 1,287  

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0   1,560 1,278 1,287  

500

0

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0   1,560 1,278 1,287  
 

1,560

1,278

1,287

 
     
 
     
     
   
 
 
 

1999

2000

2001

Japan

China

China

Japan China Hong Kong

Hong Kong

2,667 2,181 1,717 1,612 2002 2003 2004 2005 Mexico Russia Canada South Korea
2,667
2,181
1,717
1,612
2002
2003
2004
2005
Mexico
Russia
Canada
South Korea

4,667

3,142 2,995 3,279 2,650 2,650 2006 2007 2008 2009 Australia Others Until August
3,142
2,995
3,279
2,650
2,650
2006
2007
2008
2009
Australia
Others
Until August
Source: USDA ERS
Source: USDA ERS

11

US Poultry Exports (Million Pounds)

US Poultry Exports (Million Pounds) 8,000 7,000 6,000 5,000   4,980   4,000 3,000 2,000

8,000US Poultry Exports (Million Pounds) 7,000 6,000 5,000   4,980   4,000 3,000 2,000 1,000

7,000US Poultry Exports (Million Pounds) 8,000 6,000 5,000   4,980   4,000 3,000 2,000 1,000

6,000US Poultry Exports (Million Pounds) 8,000 7,000 5,000   4,980   4,000 3,000 2,000 1,000

5,000  4,980

 

4,980

 

4,0005,000   4,980   3,000 2,000 1,000       0       1999 Russia

3,0005,000   4,980   4,000 2,000 1,000       0       1999 Russia

2,000

2,000

1,000  

1,000

 
 
 

0

   
 
1999

1999

Russia
Russia

Russia

5,738 5,138 2000 2001 China (Mainland)
5,738
5,138
2000
2001
China (Mainland)

4,942

Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367
Russia 5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367

5,013

5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367  
5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367  
5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367  
5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367  
5,738 5,138 2000 2001 China (Mainland) 4,942 5,013 2002 2003 Iraq Mexico 4,997 5,333 5,367  
2002 2003 Iraq Mexico
2002
2003
Iraq
Mexico

4,997

5,333

5,367

   

2004

2005

2006

Canada

5,367     2004 2005 2006 Canada Cuba Other Chicken 7,109 6,070 4,621 4,683 4,621 2007

Cuba

5,367     2004 2005 2006 Canada Cuba Other Chicken 7,109 6,070 4,621 4,683 4,621 2007

Other Chicken

7,109

6,070 4,621 4,683 4,621 2007 2008 2009 Others Until August
6,070
4,621
4,683
4,621
2007
2008
2009
Others
Until August
Source: USDA ERS
Source: USDA ERS

12

Brazilian beef exports (USD billion)

Brazilian beef exports (USD billion) Source Secex 13

Source Secex

Agenda 3Q09 Highlights 14
Agenda 3Q09 Highlights 14

Agenda

3Q09 Highlights
3Q09 Highlights

14

Highlights

• Net profit of R$151.5 million in the quarter. • 7.8% net revenue growth, from
• Net profit of R$151.5 million in the quarter. • 7.8% net revenue growth, from
• Net profit of R$151.5 million in the quarter.

Net profit of R$151.5 million in the quarter.

• 7.8% net revenue growth, from R$7,771.5 million in 3Q08 to R$8,379.9 million in

7.8% net revenue growth, from R$7,771.5 million in 3Q08 to R$8,379.9 million in

3Q09.

• Operating cash flow of R$317.8 million in the quarter.

Operating cash flow of R$317.8 million in the quarter.

• Operating cash flow of R$317.8 million in the quarter. • Despite relevant productivity gains in
• Despite relevant productivity gains in international operations, the impact of the

Despite relevant productivity gains in international operations, the impact of the

global crisis in important consumer markets resulted in margin contractions.

global crisis in important consumer markets resulted in margin contractions.

important consumer markets resulted in margin contractions. • Efficient working capital management. • Announcement

Efficient working capital management.

Announcement of the association with Bertin S.A. and acquisition of Pilgrim’s Pride Corp.

Commitment to respect society and the environment supported by Non-governmental

organizations.of Pilgrim’s Pride Corp. • Commitment to respect society and the environment supported by Non-governmental 4

Pride Corp. • Commitment to respect society and the environment supported by Non-governmental organizations. 4 15

4

15

JBS Consolidated Net Revenue Distribution

JBS Consolidated Net Revenue Distribution Revenue Distribution by Business Units 3Q09 Italy 5% Australia 14%
Revenue Distribution by Business Units 3Q09
Revenue Distribution by Business Units 3Q09
Distribution Revenue Distribution by Business Units 3Q09 Italy 5% Australia 14% Argentina 2% Brazil Pork

Italy

5%

Australia

14%

Argentina

2%

Brazil Pork USA 17% 12% Beef USA 50%
Brazil
Pork USA
17%
12%
Beef USA
50%

Source: JBSArgentina 2% Brazil Pork USA 17% 12% Beef USA 50% Revenue Distribution by Market 3Q09 Exports

2% Brazil Pork USA 17% 12% Beef USA 50% Source: JBS Revenue Distribution by Market 3Q09
Revenue Distribution by Market 3Q09
Revenue Distribution by Market 3Q09
Exports 24% Domestic Market 76%
Exports
24%
Domestic Market
76%

Source: JBS

16

JBS Consolidated Exports Distribution

JBS Consolidated Exports Distribution Exports Distribution 3Q09 JBS Exports 3Q09 US$ 1,127.4 Million Others Japan
JBS Consolidated Exports Distribution Exports Distribution 3Q09 JBS Exports 3Q09 US$ 1,127.4 Million Others Japan
JBS Consolidated Exports Distribution Exports Distribution 3Q09 JBS Exports 3Q09 US$ 1,127.4 Million Others Japan
JBS Consolidated Exports Distribution Exports Distribution 3Q09 JBS Exports 3Q09 US$ 1,127.4 Million Others Japan

Exports Distribution 3Q09

Consolidated Exports Distribution Exports Distribution 3Q09 JBS Exports 3Q09 US$ 1,127.4 Million Others Japan
JBS Exports 3Q09 US$ 1,127.4 Million Others Japan Indonesia 18% 19% 3% China E.U. 4%
JBS Exports 3Q09
US$ 1,127.4 Million
Others
Japan
Indonesia
18%
19%
3%
China
E.U.
4%
12%
Russia
South Korea
USA
Mexico
9%
4%
8%
7%
Hong Kong
5%
Africa and
Middle East
Canada
6%
6%

Source: JBS E.U. 4% 12% Russia South Korea USA Mexico 9% 4% 8% 7% Hong Kong 5% Africa

17

JBS Consolidated Results

Net Revenue (R$ million)

JBS Consolidated Results Net Revenue (R$ million) 24.0% -3.8% -0.1% -9.5% Source: JBS EBITDA Margin (%)
24.0% -3.8% -0.1% -9.5%
24.0%
-3.8%
-0.1%
-9.5%

Source: JBS EBITDA Margin (%)

EBITDA and EBITDA Margin (R$ million)

-3.8% -0.1% -9.5% Source: JBS EBITDA Margin (%) EBITDA and EBITDA Margin (R$ million) -44.0% -20.4%
-44.0% -20.4% 81.6% -24.0%
-44.0%
-20.4%
81.6%
-24.0%

18

Currency effects in the net revenue

Net Revenue (Million)
Net Revenue (Million)

Net Revenue (Million)

R$ US$ Exchange rate average of the period: 2Q09 – 2.0748 3Q09 – 1.8677 -9.5%
R$
US$
Exchange rate
average of the period:
2Q09 – 2.0748
3Q09 – 1.8677
-9.5%
0.6%

Source: JBSthe period: 2Q09 – 2.0748 3Q09 – 1.8677 -9.5% 0.6% Source: Banco Central • Excluding the

Source: Banco Central

– 1.8677 -9.5% 0.6% Source: JBS Source: Banco Central • Excluding the exchange rate effect in

Excluding the exchange rate effect in the period, net revenue increased 0.6% over 2Q09.

19

Performance by Business Units

JBS USA (Beef) Including Australia Net Sales (US$ billion)
JBS USA (Beef)
Including Australia
Net Sales
(US$ billion)
USA (Beef) Including Australia Net Sales (US$ billion) 2.7 3Q08 2 . 8 4Q08 2.7 1Q09

2.7

3Q08

2.8

Australia Net Sales (US$ billion) 2.7 3Q08 2 . 8 4Q08 2.7 1Q09 2 . 9

4Q08

2.7

1Q09

2.9

2.8

(US$ billion) 2.7 3Q08 2 . 8 4Q08 2.7 1Q09 2 . 9 2.8 2Q09 3Q09
(US$ billion) 2.7 3Q08 2 . 8 4Q08 2.7 1Q09 2 . 9 2.8 2Q09 3Q09

2Q09

3Q09

EBITDA (US$ mi) EBITDA margin

2.7 1Q09 2 . 9 2.8 2Q09 3Q09 EBITDA (US$ mi) EBITDA margin 5.2% 3.8% 3.6%

5.2%

3.8% 3.6% 2.2% 2.2%
3.8%
3.6%
2.2%
2.2%

104.6 108.4

104.1

60.4

59.7

3Q08

4Q08

1Q09

2Q09

3Q09

Source JBS EBITDA Margin (%)

JBS USA (Pork)

Net Sales (US$ million)
Net Sales
(US$ million)
EBITDA Margin (%) JBS USA (Pork) Net Sales (US$ million) EBITDA (US$ mi) EBITDA margin INALCA
EBITDA (US$ mi) EBITDA margin
EBITDA (US$ mi)
EBITDA margin
Net Sales (US$ million) EBITDA (US$ mi) EBITDA margin INALCA JBS Net Sales (€ million) 162

INALCA JBS

(US$ million) EBITDA (US$ mi) EBITDA margin INALCA JBS Net Sales (€ million) 162 146 143
Net Sales (€ million)
Net Sales
(€ million)
162 146 143 144 144 3Q08 4Q08 1Q09 2Q09 3Q09
162
146
143
144 144
3Q08
4Q08
1Q09
2Q09
3Q09
EBITDA (€ mi) EBITDA margin
EBITDA (€ mi)
EBITDA margin
6.6% 5.1% 5.3% 4.6% 3.9% 9.7 8.3 7.6 6.6 5.6 3Q08 4Q08 1Q09 2Q09 3Q09
6.6%
5.1%
5.3%
4.6%
3.9%
9.7
8.3
7.6
6.6
5.6
3Q08
4Q08
1Q09
2Q09
3Q09

JBS MERCOSUL

7.6 6.6 5.6 3Q08 4Q08 1Q09 2Q09 3Q09 JBS MERCOSUL Net Sales (R$ billion) 1.8 1.7
Net Sales (R$ billion)
Net Sales
(R$ billion)
1.8 1.7 1.6 1.7 1.4 3Q08 4Q08 1Q09 2Q09 3Q09
1.8
1.7
1.6
1.7
1.4
3Q08
4Q08
1Q09
2Q09
3Q09
1.8 1.7 1.6 1.7 1.4 3Q08 4Q08 1Q09 2Q09 3Q09 EBITDA (R$ mi) EBITDA margin 5.6%
EBITDA (R$ mi) EBITDA margin
EBITDA (R$ mi)
EBITDA margin
5.6% 4.3% 4.9% 3.7% 2.9% 199,1 82.6 47.3 69.4 58,2 3Q08 4Q08 1Q09 2Q09 3Q09
5.6%
4.3%
4.9%
3.7%
2.9%
199,1
82.6
47.3
69.4 58,2
3Q08
4Q08
1Q09
2Q09
3Q09

20

Debt

Debt • The net debt / EBITDA ratio increased from 2.6x in 2Q09 to 3.3x in
Debt • The net debt / EBITDA ratio increased from 2.6x in 2Q09 to 3.3x in
• The net debt / EBITDA ratio increased from 2.6x in 2Q09 to 3.3x in
• The net debt / EBITDA ratio increased from 2.6x in 2Q09 to 3.3x in 3Q09, reflecting
the EBITDA decline when compared with 3Q08.
• The company projects a reduction in leverage levels by the end of the year.
• The gross and net debt reduced 5.6% and 2.2%, respectively, over 2Q09.
Net Debt / EBITDA Pro Forma per Quarter
Gross debt Profile (R$ million)

5,971.8

6.226.4

5,877.1

* 3.3 2.5 2.6 2.3 2.0
*
3.3
2.5
2.6
2.3
2.0

53%

61%

59%

39%

41%

47%

* 3.3 2.5 2.6 2.3 2.0 53% 61% 59% 39% 41% 47% 3Q08 4Q08 1Q09 2Q09
* 3.3 2.5 2.6 2.3 2.0 53% 61% 59% 39% 41% 47% 3Q08 4Q08 1Q09 2Q09
* 3.3 2.5 2.6 2.3 2.0 53% 61% 59% 39% 41% 47% 3Q08 4Q08 1Q09 2Q09

3Q08 * 3.3 2.5 2.6 2.3 2.0 53% 61% 59% 39% 41% 47% 4Q08 1Q09 2Q09 Source:

4Q08

1Q09

2Q09

2.0 53% 61% 59% 39% 41% 47% 3Q08 4Q08 1Q09 2Q09 Source: JBS Net Debt/ EBITDA

Source: JBS Net Debt/ EBITDA * LTM including Smithfield Beef pro-forma.

Net Debt/ EBITDA * LTM including Smithfield Beef pro-forma. EBITDA pro-forma 3Q09 1T09 Short term 2T09

EBITDA pro-forma

3Q09

1T09

Short term

2T09

Long term

3T09

21

Operational Cash Flow

• For the second quarter consecutive, the Company generated positive operating cash flow of more
• For the second quarter consecutive, the Company generated positive operating cash flow of more
• For the second quarter consecutive, the Company generated positive operating cash flow of more
• For the second quarter consecutive, the Company generated positive operating cash flow of more
• For the second quarter consecutive, the Company generated positive operating cash flow
of more than R$300 million.
positive operating cash flow of more than R$300 million. CAS H FL OW 3Q09 2Q09 Var.%
CAS H FL OW 3Q09 2Q09 Var.%  

CAS H FL OW

3Q09

2Q09

Var.%

 

E BIT

210.3

296.6

-29.1%

tax es -66.1 -90.4 -26.8%

tax es

-66.1

-90.4

-26.8%

NOP L AT

144.1

206.2

-30.1%

Depreciation 81.6 87.4 -6.7%

Depreciation

81.6

87.4

-6.7%

Gross Cash Flow

225.8

293.6

-23.1%

Working Capital Variation 326.5 316.5 3.2%

Working Capital Variation

326.5

316.5

3.2%

CAP E X -234.4 -288.0 -18.6%

CAP E X

-234.4

-288.0

-18.6%

OP ER ATING CAS H FL OW

317.8

322.2

-1.3%

 
3.2% CAP E X -234.4 -288.0 -18.6% OP ER ATING CAS H FL OW 317.8 322.2

22

Working Capital

Working Capital JBS continues to reduce its working capital needs, which decreased from 37 days in
JBS continues to reduce its working capital needs, which decreased from 37 days in 2Q09
JBS continues to reduce its working capital needs, which decreased from 37 days in 2Q09 to 33
days in 3Q09.
2º Quarter 2009
Client’s order
Product
Client’s payment
to JBS
Delivery
to JBS
Production & Stock CLIENT = 37 days 21 dias SUPPLYER = 21 days 37 days
Production & Stock
CLIENT = 37 days
21 dias
SUPPLYER = 21 days
37 days

Supplyer

payment

WORKING CAPITAL & INTERESTS

3º Quarter 2009

Client’s order

Product

Client’s payment

to JBS

Delivery

to JBS

Client’s payment to JBS Delivery to JBS Production & Stock CLIENT = 33 days 21 dias

Production & Stock

to JBS Delivery to JBS Production & Stock CLIENT = 33 days 21 dias SUPPLYER =

CLIENT = 33 days

Delivery to JBS Production & Stock CLIENT = 33 days 21 dias SUPPLYER = 21 days
21 dias SUPPLYER = 21 days
21
dias
SUPPLYER = 21 days

Supplyer

payment

33 days
33 days

WORKING CAPITAL & INTERESTS

& Stock CLIENT = 33 days 21 dias SUPPLYER = 21 days Supplyer payment 33 days

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Final Considerations

• Signs of economic recovery bring the prospect of better results in coming quarters. •
• Signs of economic recovery bring the prospect of better results in coming quarters. •
• Signs of economic recovery bring the prospect of better results in coming quarters.

Signs of economic recovery bring the prospect of better results in coming quarters.

• Turnaround of Argentine operations is under way with the change in management

Turnaround of Argentine operations is under way with the change in management

and the implementation of internal restructuring.

and the implementation of internal restructuring.

management and the implementation of internal restructuring. • JBS maintains its focus on building a distribution
• JBS maintains its focus on building a distribution platform to add value to its

JBS maintains its focus on building a distribution platform to add value to its products and increase its margins.

• JBS maintains its focus on building a distribution platform to add value to its products
to add value to its products and increase its margins. • The undergoing acquisition of Pilgrim’s

The undergoing acquisition of Pilgrim’s Pride and the association with Bertin adds to the growth potential of the company.

Financial leverage continues to be our focus and we aim to keep it under control.

We are committed to building a sustainable platform respecting our customers and

under control. • We are committed to building a sustainable platform respecting our customers and the

the environment.we aim to keep it under control. • We are committed to building a sustainable platform

under control. • We are committed to building a sustainable platform respecting our customers and the

24

IR Contacts: ir@jbs.com.br +55 11 3144 4055 www.jbs.com.br/ir Questions & Answers
IR Contacts: ir@jbs.com.br +55 11 3144 4055 www.jbs.com.br/ir
IR Contacts:
ir@jbs.com.br
+55 11 3144 4055
www.jbs.com.br/ir
Questions & Answers
Questions & Answers

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.