apresentação frangosul ingles
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JBS S.A.
JBS will operate Frangosul plants in Brazil
May 07th, 2012
Presenters
Wesley Mendonça BatistaCEO
James Cleary
2PÁG.
Jeremiah O’CallaghanInvestor Relations Director
James ClearyCEO JBS Brazil Poultry
JBS S.A. at a glance
Founded in the 1950’s in West Central Brazil
IPO in 2007
Leading protein producer in the World
Revenues of US$36.9 billion in 2011
EBITDA of US$1.9 billion in 2011
3PÁG.
EBITDA of US$1.9 billion in 2011
Annual net revenue organic growth of 13% in local currency y.o.y.
135,000 employees worldwide
145 production units in 5 continents
Market cap of approximately US$13 billion(1)
(1) 03/19/2012
31.1
36.9
Merger and Acquisition track record More than 30 acquisitions in 15 years
Rio BrancoCacoal 1Cacoal 2
VenadoTuerto
JV Beef Jerky
Merger with BertinJBS Couros5 new units
Tatiara Meat (Swift Austrália)
Inalca
SB Holdings
Berazategui (Rio Platense)Colonia Caroya
Maringá (Amambay)
Swift Foods Co.
JBS went international with the acquisition of Swift Argentina.
Construction of a sustainable global meat production and sales platform.
2005
JBS became the largest beef company in the world and the biggest Brazilian company in the food industry and entered the US pork market.
2007
2008
Diversification of market segments through the acquisition of Pilgrim’s Pride and merger with Bertin.
2009
JBS Swift became the leader in lamb production in Australia.
2010
Pilgrim´s Pride3 Geographic and market segment diversification
1 Market Leader
4 Well-recognized brands
2 Track Record
of successful
acquisitions
Rockdale Beef
SmithfieldBeef
Tasman
4PÁG.
0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 2.0
7.2
16.5 17.2
1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Barra do Garças (Sadia)
Andradina (Sadia)
Barretos (Anglo)
Pres. Epitácio e Campo grande (Bordon)
Araputanga(Frigoara)
Cáceres (Frigosol)
Iturama (Frigosol)
Cacoal 2Porto VelhoVilhena (Frigovira)
Pedra Preta (Frigo Marca)
TuertoPontevedra (CEPA)
Net revenue (USD billion)
RosárioSan Jose(Swift Argentina)
brands
Source: JBS
BeefFive Rivers
3 Geographic
and market
segment
diversification
1 Market Leader
4 Well-recognized brands
2 Track Record of successful acquisitions
Presence in more than 100 countries, in 5 continents
Strategic Geographical Distribution
5PÁG.Source: JBS
brands
Slaughterhouse and Industry
Sales Office
Pork
LeatherBeef
Distribution CenterDairy
Biodiesel
Chicken
Geographic Presence andProductionCapacity
85,825 heads/day
Beef
7.9 mm birds/day
Chicken
50,000 heads/day
Pork
5,400 tons/day
Dairy
24,000 heads/day
Lamb
76,100 hides/day
Leather
3
60
37
20
7
1
58
17
134
6 Lamb
Poultry IndustryOverview of the Global Market Overview of the Global Market
World Poultry ConsumptionThe poultry industry has a large and global demand base. Emergent populous markets such as China, India and Russia still have a low consumption per capita
World Poultry Consumption Poultry Consumption¹ (US$ Bn)
65
104
162
203
234
2000 2005 2010 2015E 2019E
Global Consumption (2010) : 94 M ton
CAGR:9.6%
CAGR:3.6%
Consumption
7PÁG.1 - Includes poultry, turkey, duck, goose and guinea fowlSource: FAO, USDA
Poultry Consumption¹ (M ton)
6983
94106
116
2000 2005 2010 2015E 2019E
Relevant poultry consumption in the world, with growth prospects for the next years, boosting Brazilian exports
CAGR:
3.1%
CAGR:
2.3%
Over 40
30-40
20-30
10-20
0-10
Consumptionkg/person/year
Positive Prospects for the Industry
The poultry industry is increasing its importance and replacing other meats in the global consumption market
Main Growth Drivers
Poultry Industry
� Second largest meat category
− Expected to surpass pork by 2030
− Increasing demand from emerging markets
− Substitution effect from other meats Poultry30%
Pork39%
Sheep5%
Beef26%
Beef
Global Meat Market Breakdown
2000
2010
8PÁG.Fonte: USDA, FAO
Increase in the world population
GDP growth
Cheapest source of protein
Quick to produce vis-à-vis other proteins
No religion barriers
Poultry34%
Pork39%
Sheep4%
Beef23%
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Poultry39%
Pork37%
Sheep4%
Beef20%
2030E
Attractive Industry Dynamics
The poultry has several advantages when compared with other meats
Fast Production
Low Cost
Production
Chicken Products Key
Highlights
� Whole Chicken
− Consumed worldwide
− Exported frozen to Middle East
− Broiler: “regular" chicken
− Griller: small chicken consumed
individually in Middle East
1
2
Intrinsic Advantages of
Poultry
9PÁG.Source: Market Information
High Nutritional
Qualities
No Religious
Barriers
� Chicken Cuts
− Chicken Fillet
� Preferred part of the chicken in the developed
countries
− Dark Meat
� Parts of chicken excluding the filet
� Mainly exported to Asia where it is highly
consumed
� Processed Products
− Mainly consumed in western countries
− Increased exports to developing
countries
2
3
Poultry
Top Countries from the Global Chicken Market
Brazil plays a relevant role in the industry
Top 7 Consumers – 2011
M Tons
13.7 13.0
9.6 9.1
3.5 3.0 2.9
USA China Brazil EU-27 Mexico Russia India
16.7
13.2 13.1
9.4
2.9 2.9 2.6
USA China Brazil EU-27 India Mexico Russia
Top 7 Producers – 2011
M Tons
10PÁG.Source USDA, Ubabef
3.9
3.2
1.00.5 0.4 0.2 0.2
Brazil USA EU-27 Thailand China Argentina Turkey
0.90.8
0.7
0.60.5
0.4 0.4
Japan Saudi Arabia
EU -27 Mexico Russia Iraq Hong Kong
Top 7 Exporters – 2011
M Tons
Top 7 Importers – 2011
M Tons
Global Surplus (deficit)Goldman Sachs forecast for animal protein in 2020
11PÁG.Source: Goldman Sachs
Beef & Veal
Surplus Deficit
Pork
Chicken
Brazilian Poultry Industry
Largest export market with promising domestic market
Poultry Exports – Main States (2010)Overview
� 3rd largest poultry consumer in a expanding domestic market:
– Increase in purchase power � boosting demand for processed products
– Change in Brazilian Western consumption habits
� Largest poultry exporter:
– Brazil is a top 3 poultry producer with13.1 M tons in 2011
– In 2011, it exported approximately 30% of its production
– Middle East and Asia are the main Brazilian exports destination
Production (M ton) Poultry Consumption per Capita – kg / person / yearExports Destination 2010
MTMTMTMTMSMSMSMS GOGOGOGORSRSRSRS SCSCSCSCPRPRPRPR SPSPSPSP MGMGMGMGState Market Share
Santa Catarina 26.7%
Paraná 26.2%
R. Grande do Sul 21.0%
São Paulo 7.0%
Goiás 5.2%
Mato Grosso 4.5%
Minas Gerais 4.3%
M. Grosso do Sul 3.4%
Dist. Federal 1.5%
Total: 3.9 M tons
12PÁG.Source: USDA, Ubabef, Secex, MDIC
Production (M ton) Poultry Consumption per Capita – kg / person / year
Middle East36%
America7%Africa
13%
Asia26%
Others17%
Exports Destination 2010
Export market represents ~30%
35.5 35.7 37.0 38.5
38.544.1
2006 2007 2008 2009 2010 2011
9,310,3
10,9 11,012,2
13,1
2006 2007 2008 2009 2010 2011
JBS Poultry BrazilFrangosulFrangosul
Frangosul at a Glance
The Company is the 3rd largest poultry exporter in Brazil
Main Operational Assets
Brief Overview
� Frangosul was founded in 1970 in the city of Montenegro (RS). The company was acquired by Group Doux in 1998
o Poultry’s production capacity of 1,100,000 chickens / day
o Pork’s production capacity of 3,000 hogs / day
o Sales of R$ 1.4 billion in 2011
o Well recognized brands with presence in both domestic and export market
� 4 slaughtering plants
– 3 dedicated plants for poultry
– 1 dedicated plant for pork
� 1 dedicated plant for processed products and 2 breaded plants
� 4 feed factories
� 6 hatcheries
Brands
Premium brand dedicated to the Brazilian domestic market (South Region)
� Highly recognized and established brands with strong reputation for quality and innovation
14PÁG.(1) Includes Brazilian domestic market
Source: Company
� 6 hatcheries
� Grand parents (2.8 M females/year)
� Growing breeders (2.2 M females/year)
� Hatching eggs production (6.3 M eggs/week)
Multi Concept Operations Main Export Markets
Sourcing Product Market Distrib.
� Whole
� Cuts
� Processed
� 100 countries¹
� 5 continents
� Retailers
� Food Service
� Industry
Value brand dedicated to the Brazilian export market
Eastern Europe
LatAm
Asia
Middle East
Markets
� Saudi Arabia
� Gulf
� Iraq
� Yemen
� China
� Japan
� Korea
� Chile
� Venezuela
� Argentina
� Cuba
� Greece
� CIS
Sales Breakdown of Frangosul
The Company is the 3rd largest poultry exporter
83%
8%
3% 6%
Poultry Pork Processed Others
Sales 2011( By Market )
Exports Domestic Markets
8%
7%
70%
15%
Poultry Pork Processed Others
15PÁG.
Volume 2011(364,823 Tons)
87%
6%3% 4%
Poultry Pork Processed Others
7%5%
87%
1%
Poultry Pork Processed Others
295,178 tons 69,645 tons
Source: Company
Slaughter Plants
The Company has plants strategic located in the State of Rio Grande do Sul and Mato Grosso do Sul.
MAMAMAMAACACACAC AMAMAMAMRORORORORRRRRRRR APAPAPAPPAPAPAPAMTMTMTMTMSMSMSMS GOGOGOGOTOTOTOTOSCSCSCSCPRPRPRPR SPSPSPSP MGMGMGMGRJRJRJRJ ESESESESBABABABAPIPIPIPI CECECECE RNRNRNRNPBPBPBPBPEPEPEPE ALALALALSESESESE
4
Montenegro I
– Poultry
– Area (m²): 30,498
– Capacity (heads / day): 550,000
– Production 2010 (tons): 148,863
Ana Rech
– Pork
– Area (m²): 23,419
Montenegro II
– Processed Products
– Area (m²): 11,885
– Capacity (tons / day): 180
– Production 2010 (tons): 78,273
1A
1B
2
16PÁG.
RSRSRSRS1
3
2
–
– Capacity (heads / day): 3,000
– Production 2010 (tons): 55,227
Passo Fundo
– Poultry
– Area (m²): 25,511
– Capacity (heads / day): 430,000
– Production 2010 (tons): 162,050
Caarapó
– Poultry
– Area (m²): 8,710
– Capacity (heads / day): 127,000
– Production 2010 (tons): 37,507
3
4
Export Site
Total Production Capacity
� Poultry: 1,100,000 heads / day
� Pork: 3,000 heads / day
� Processed Products: 180 tons / day
Poultry Site
Processed Products
Pork Site
Investment Highlights
JBS Frangosul
Leading Company
Intrinsic advantages
Expanding poultry market
� Increase in the poultry consumption
� Limited production capacity in the biggest consuming countries
� New markets opening up to importations
� No religion barriers
� Low production costs compared to other protein sources
� Fast production cycle
� One of the world’s leading producers
� Sizable asset with a production capacity of ~365,000 tons (2011)
� Brazil’s 3rd largest poultry exporter
17PÁG.
Multi concept
operations
Recognised brands
Proven relation with customers
� Brazil’s 3rd largest poultry exporter
� Guarantees a stable performance through:– Multi-product: whole, cuts, processed products
– Multi-market: operating in 100 countries and on 5 continents
– Multi-distribution: retailers, food service, industry
� Strong brands with global impact:– Frangosul is a respect poultry brand on the export market:
– LeBon has a 10% growth rate in Brazil
– [Doux Brand?]
� Longstanding relations with customers: averaging 20 years with the Top 20
JBS Frangosul
Mission
“ To be best in what we set out to do, totally focused onour business, ensuring the best products and services for our customers, solidity for our suppliers,
”
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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