2. 3Q11 Highlights
Gross Margin expanded 102bps, compared to 2Q11 and reached 10.9%.
EBITDA margin increased 101 bps to 5.1% in the quarter.
Net revenue in 3Q11 was R$15,567.8 million, 10.6% higher than 3Q10.
The Company ended the quarter with R$5.6 billion in cash, more than a 100% of its short-term debt.
JBS generated net cash provided by operating activities of R$897 million in the quarter.
JBS USA Beef presented EBITDA in 3Q11 of R$184.1 million , an increase of 77.9% over the last
quarter.
Net debt reduced approximately R$530 million, excluding the FX variation effect in the net debt in US
dollar denominated.
The main operating highlights were:
JBS Mercosul presented JBS USA Pork business unit
EBITDA of R$453.8 million, with presented cumulative 2011
an EBITDA margin of 11.6%. EBITDA of US$264.8 million,
51.8% higher than in the same
period of 2010.
PAGE 2
5. Debt Maturity Schedule and Profile
3Q11 Gross Debt: 19,235 (R$ million)
Short Term
Net of Cash 2012 2013 2014 2015 2016 2017 2018 2019 and after
236
372 198
968
1,592 1,232
1,928
3,411
4,190
R$ / USD Bonds / Other
JBS S.A. Subsidiaries
62% 38%
3Q11 29% 71% 3Q11 34% 66%
R$ USD Bonds Other
PAGE 5
Source: JBS Financial Statements and Internal Reports
6. Debt Profile: 3Q11
Net debt to EBITDA, excluding Pilgrim’s Pride Corp. (PPC)*, reduced from 3.2x in 2Q11 to 3.0x in 3Q11.
Net debt to EBITDA, including Pilgrim’s Pride Corp. (PPC)*, went from 3.6x in 2Q11 to 4.0x in 3Q11.
The Company ended the quarter with R$5.6 billion in cash or cash equivalents, more than a 100% of the Company’s short-term debt.
The Company generated R$897 million of operating cash flow and R$620 million of net cash flow.
Leverage ST / LT Profile
3Q11 28% 72%
1500 4.0x 4
1300 3.6
3.2 2Q11 27% 73%
3.1
1100
2.9 3.0 3.0x 3
900
1Q11 30% 70%
700 2
500 4Q10 33% 67%
300 1
100 3Q10 33% 67%
-100 3Q10 4Q10 1Q11 2Q11 3Q11 0
. Leverage EBITDA Short Term Long Term
. Leverage Ex-PPC EBITDA Ex-PPC
Source: JBS PAGE 6
* subsidiary controlled by JBS with non-recourse debt.
7. Corporate Structure and Guarantors
USD350mm Notes due 2016 (ex-Bertin)
USD300mm Notes due 2016
JBS S.A.
USD900mm Notes due 2018
Vigor
USD100mm Notes due 2017
100.0% Subsidiary of JBS S.A.
JBS Hungary Holdings Kft
JBS USA Holdings USD500mm Notes due 2018
67.3%
Pilgrim’s Pride
100.0%
JBS USA Finance, Inc. JBS USA, LLC
USD700mm Notes due 2014
USD650mm Notes due 2021
USD700mm Notes due 2020
100.0% 100.0% 100.0%
JBS USA Beef JBS USA Pork JBS Australia
100.0%
Bond Guarantor
JBS Five Rivers
Notes 2016 - JBS S.A. JBS Hungary, JBS USA Holdings, JBS USA and Swift Beef Company
Notes 2016 - Bertin JBS Hungary
Notes 2017 - Vigor S.A. Fábrica de Produtos Alimentícios Vigor
Notes 2014 - JBS USA JBS, JBS Hungary, JBS USA Holdings and all JBS USA's U.S. restricted subsidiaries
Notes 2018 - JBS S.A. JBS S.A., JBS Hungary
Notes 2018 - PPC Pilgrim’s Pride Corporation of West Virginia, Inc.
Notes 2021 - JBS USA JBS, JBS Hungary, JBS USA Holdings and all JBS USA's U.S. restricted subsidiaries
Notes 2020 - JBS USA LLC JBS S.A., and each of wholly-owned U.S. restricted subsidiaries
PAGE 7
8. Debt Securities Issued
Description Principal Total Term Coupon Maturity
2016 Notes: JBS S.A. USD 300 MM 10 years 10.500% p.a. Aug, 2016
2016 Notes: Bertin USD 350 MM 10 years 10.250% p.a. Oct, 2016
2017 Notes: Vigor USD 100 MM 10 years 9.250% p.a. Feb, 2017
2014 Notes: JBS USA USD 700 MM 5 years 11.625% p.a. May, 2014
2018 Notes: JBS S.A. USD 900 MM 7.5 years 8.250% p.a. Jan, 2018
2018 Notes: PPC USD 500 MM 8 years 7.875% p.a. Dec, 2018
2021 Notes: JBS USA USD 650 MM 10 years 7.250% p.a. Jun, 2021
2020 Notes: JBS USA, LLC USD 700 MM 8 years 8,250% p.a. Feb, 2020
JBS S.A. / JBS USA
Agency Scale Rating Outlook Date
Fitch Global BB- Stable 11/18/2011
Moody’s Global B1 Stable 12/06/2011
Standard & Poors Global BB Stable 11/04/2011
Pilgrim’s Pride
Agency Rating Outlook Date
Moody’s B2 Negative 11/16/2011
Standard & Poors B Develop 08/16/2011
PAGE 8
9. 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.
”