1Q07 Conference Call Presentation

7/30/2019 1Q07 Conference Call Presentation

1/13

Agenda

Pgina

Conference Call

1Q07 Results

A p r i l 2 6 , 2 0 0 7


2/13

Presenters

Andr Gustavo Menezes

Investor Relations Manager

1

Srgio LongoDirector of Finance and Investor Relations

Wesley Mendona Batista

Executive Director of Operations


3/13

We are:

c The worlds third largest beef producer in terms of slaughtering

capacity;

d The largest beef producer and exporter in Latin America;

e The second largest exporter of fresh beef in the world in terms of

revenues;

f The largest exporter of processed beef in the world;

g The leading beef seller in the domestic Brazilian market;

h Our products include fresh and chilled beef, processed beef andother beef by-products;

iWe posted net revenues of R$4.0 billion in 2006, of which 61%from exports

An overview of JBS

An overview of JBS

2


4/13

Our modern facilities are strategically

located

Asset LocationsAsset Locations Overview

Overview

Slaughterhouse

Slaughterhouse/Processing plant

Distribution center

Canned vegetables plant

Canned beef plant

Container field

SP

MG

MS

MT

GO

RO

RJ

Argentina

Brazil

Head of cattle (in thousands)

2.500 7.500

7.500 12.500

12.500 17.500

17.500 22.500

Over 22.500

JBS operationalfootprint

AC

JBS owns 31 units:

24 slaughterhouses, including9 processing plants

1 vegetables canning plant

1 beef canning plant

4 distribution centers

1 container area

Geographic diversificationprovides:

Operational flexibility tosource from, and produce in,different locations

Lower transportation costs

Natural hedge to disease risk

3

... to provide flexibility, geographic diversification and access to cattle supplies


5/13

For the 1Q07, JBS posted net revenues of

R$1.1 billion, while our EBITDA grew by

28.4%, with a margin of 14.4%...

4

(*) Net income decreased by 67.0% to R$10.6 million in the 1Q07, mainly due to non-

recurrent expenses related to the Companys initial public offering in the total amount

of R$50.6 million

R$ million 1Q07 1Q06 Var.%

Net Sales Revenue 1.086,10 886,1 22,6%

Domestic Market 460,2 384,6 19,6%Exports 626,0 501,5 24,8%

Gross Profit 257,6 204,4 26,0%

Gross Margin 23,7% 23,1%

Net Income* 10,6 32,3 -67,0%

Net Margin 1,0% 3,6%

EBITDA 156,2 121,7 28,4%

EBITDA Margin 14,4% 13,7%

Sales Volumes (thousands of tons)

Beef Exports 103,6 76,2 35,9%

Beef Domestic Market 189,2 167,9 12,7%

Total 292,7 244,1 19,9%


6/13

In the domesctic market, net revenues grew

by 19.6%...

...primarily due to a volume growth of 12.7%and an average sales price increase of 6.2%

5

Beef Domestic Market 1Q07 1Q06 Var. %

Net Sales Revenue (R$ million)

Fresh and Chilled Beef 312,4 267,4 16,8%

Processed Beef 67,3 53,8 25,2%

Others 80,5 63,4 26,9%

TOTAL 460,2 384,6 19,6%

Volume (thousands of tons)



Others 38,1 35,5 7,4%

TOTAL 189,2 167,9 12,7%

Average Sales Price (R$/kg)


Processed Beef 5,34 5,47 -2,4%

Others 2,11 1,79 18,2%

TOTAL 2,43 2,29 6,2%


7/13

Our export revenues grew by 24.8%...

...while our volume to international marketsincreased by 35.9%

6

Beef Exports 1Q07 1Q06 Var. %

Net Sales (R$ million)



TOTAL 626,0 501,5 24,8%

Volume (thousands of tons)Fresh and Chilled Beef 73,0 48,8 49,6%


TOTAL 103,6 76,2 35,9%

Average Sales Prices (R$/kg)

Fresh and Chilled Beef 5,97 6,61 -9,6%Processed Beef 6,21 6,54 -5,0%

TOTAL 6,04 6,58 -8,2%

Average Sales Prices (US$/kg)

Fresh and Chilled Beef 2,83 3,01 -5,8%

Processed Beef 2,95 2,97 -1,0%TOTAL 2,87 3,00 -4,3%


8/13

Our operational results

7

R$ million 1Q07 V% 1Q06 V%

Net Sales Revenue 1086,1 100,0% 886,1 100,0%Cost of Goods Sold (828,5) -76,3% (681,7) -76,9%

Gross Margin 257,6 23,7% 204,4 23,1%

Selling Expenses (99,9) -9,2% (77,6) -8,8%

General and Administrative Expenses (20,6) -1,9% (23,2) -2,6%

Net Financial Income (Expenses) (57,0) -5,2% (42,2) -4,8%

Initial Public Offering Expenses (50,6) -4,7% 0,0 0,0%

Operating Income 29,6 2,7% 61,5 6,9%

Non Operating Income (Exepnses) 0,1 0,0% 0,1 0,0%

Income Tax and Social Contribution (19,6) -1,8% (29,4) -3,3%Minority Interest 0,5 0,0% 0,0 0,0%

Net Income 10,6 1,0% 32,3 3,6%


9/13

During the quarter, JBS invested a total of

R$213.3 million in the following projects

CAPEXCAPEX

Increase of the production capacity of its processed beef plant located in

Andradina, So Paulo from 30 tons to 100 tons per day;

Increase of the production capacity of its plant located in Barra do Gara, MatoGrosso from 1,300 to 2,500 head of cattle slaughtered and deboned per day;

Increase of the production capacity of its plant located in Campo Grande, Mato

Grosso do Sul from 1,300 to 3,000 head of cattle slaughtered and deboned per

day;

Increase of the production capacity of its plant located in Vilhena, Rondnia,

from 900 to 2,200 head of cattle slaughtered and deboned per day;

Construction of a beef jerky production plant in Santo Antnio da Posse, So

Paulo, which is currently in its final phase;

Increase of the production capacity of its plant located in Barretos, So Paulo

from 1,600 to 2,500 head of cattle slaughtered and deboned per day;

Acquisition of new trucks to be used for product transportation; and

Other investments such as acquisition of new equipment and maintenance of

the Companys facilities; 8


10/13

including acquisitions in Argentina and the

United States

RECENT EVENTSRECENT EVENTS

Acquisition of a slaughtering plant in Berazategui, Buenos Aires, Argentina, still

in the process of approval by the Argentine autorithies;

Acquisition of 100% of the North American SB Holdings and its subsidiaries:

- One of the largest processed beef distributors in the US market;

- Investment: US$11.9 million;

- Consolidated net revenues in 2006: US$55.7 million;

The Company entrered into a joint venture to produce, market and distribute

beef jerkyand, through this joint venture, a total of US$30 million has been

invested towards:

- Acquisition of a company in the US (Pioneer) to produce, market anddistribute beef jerky with sales in 2006 of approximately US$22 million;

- Acquisiton of another US company (Double B) to produce, market and

distribute beef-based products with sales of US$18 million;

- The company is in the final phase of construction of a beef jerky production

plant in Santo Antnio da Posse, So Paulo, whose operations are expected

to begin in the first half of may9


11/13

SuggestedPricing Range

Offering Size

OfferingStructure

G r e e n Sh o e

Use of Proceeds

Total Proceeds

R$8.00 per Common Share

200,000,000 Common Shares, representing 23.5% of JBS capital post-offering (excluding Over-allotment Option)

Local offering with international sales effort under Rule 144A/Reg-S

Up to 15% of the base offering (100% secondary)

70% capacity expansion investments and acquisition / 30% working capital

R$1.6 billion

SellingShareholder

Issuer JBS S.A. (JBS)

L i s t i n g Novo Mercado of Bovespa (ticker: JBSS3)

J o i n t

B o o k r u n n e r s

1 65% / 35% primary and secondary, respectively, if Over-allotment Option is fully exercised

2

Lock-up Period 180 days for the Selling Shareholders, the Company and Management

ZMF Fundo de Investimento em Participaes (Batista family)

ShareComposition

75% primary / 25% secondary1

Initial Public Offering


12/13

Safe Harbor

We make forward-looking statements that 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 include

statements regarding our intent, belief or current expectations or that of ourdirectors or executive officers.

Forward-looking statements also include information concerning our possible or

assumed future results of operations, as well as statements preceded by, followed

by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. 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 results and

shareholder values may differ materially from those expressed in or suggested bythese forward-looking statements. Many of the factors that will determine these

results and values are beyond our ability to control or predict.


13/13

Thank You

1Q07 Conference Call Presentation

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