Professional Documents
Culture Documents
Presenters
James Cleary
CEO JBS Brazil Poultry
Jeremiah OCallaghan
Investor Relations Director
PG.
(1) 03/19/2012
PG.
2008
3 Geographic and
2009 2010
Diversification of market segments through the acquisition of Pilgrims Pride and merger with Bertin. JBS Swift became the leader in lamb production in Australia.
Maring (Amambay) Berazategui (Rio Platense) Colonia Caroya SB Holdings JV Beef Jerky Rio Branco Venado Cacoal 1 Tuerto Cacoal 2 Porto Velho Pontevedra Vilhena (CEPA) (Frigovira) Pedra Preta (Frigo Marca) Cceres (Frigosol) Iturama (Frigosol) Rosrio San Jose (Swift Argentina)
Merger with Bertin JBS Couros 5 new units Tasman Smithfield Beef Five Rivers
36.9 31.1
4 Well-recognized
brands
Barretos (Anglo) Pres. Epitcio e Campo grande (Bordon) Barra do Garas (Sadia)
16.5
17.2
Andradina (Sadia)
Araputanga (Frigoara)
7.2
0.4
1997
0.4
1999
0.5
2000
0.5
2001
0.4
2002
0.7
2003
1.2
2004
1.5
2005
2.0
2006 2007 2008 2009 2010 2011
Source: JBS
PG.
3 Geographic
and market segment diversification
4 Well-recognized
brands
3 60
Pork Beef
37 6
Chicken Lamb
7 20
Dairy Leather
58 17
134 1
Beef
85,825 heads/day
Chicken
7.9 mm birds/day
Pork
50,000 heads/day
Leather
76,100 hides/day
Dairy
5,400 tons/day
Lamb
24,000 heads/day
PG.
104 65
2000
Consumption kg/person/year Over 40 30-40 20-30 10-20 0-10
2005
2010
2015E
2019E
83 69
94
106
116
Relevant poultry consumption in the world, with growth prospects for the next years, boosting Brazilian exports
2000
2005
2010
2015E
2019E
1 - Includes poultry, turkey, duck, goose and guinea fowl Source: FAO, USDA
PG.
Pork 39%
2010
Beef 23%
Increase in the world population GDP growth Cheapest source of protein Quick to produce vis--vis other proteins No religion barriers
Sheep 4%
Sheep 4%
Poultry 34%
2030E
Pork 39%
Beef 20%
Poultry 39%
Pork 37%
PG.
Attractive Industry Dynamics The poultry has several advantages when compared with other meats
2 Poultry
No Religious Barriers High Nutritional Qualities
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
3 Processed Products
Mainly consumed in western countries Increased exports to developing countries
Source: Market Information PG.
Top Countries from the Global Chicken Market Brazil plays a relevant role in the industry
2.6
USA
China
Brazil
EU-27
Mexico
Russia
India
USA
China
Brazil
EU-27
India
Mexico
Russia
3.9 3.2
0.8
1.0 0.5 Brazil USA EU-27 Thailand 0.4 China 0.2 Argentina 0.2 Turkey Japan Saudi Arabia EU -27 Mexico Russia Iraq Hong Kong
PG.
10
Surplus
Deficit
11
MT MS
GO PR SC SP
Mato Grosso
MG
RS
Production (M ton)
Export market represents ~30%
13,1
44.1
2006
2007
2008
2009
2010
2011
Af rica 13%
PG.
12
Frangosul at a Glance
The Company is the 3rd largest poultry exporter in Brazil
Frangosul was founded in 1970 in the city of Montenegro (RS). The company was acquired by Group Doux in 1998
Brief Overview
o o o o
Poultrys production capacity of 1,100,000 chickens / day Porks production capacity of 3,000 hogs / day Sales of R$ 1.4 billion in 2011 Well recognized brands with presence in both domestic and export market
Brands
Highly recognized and established brands with strong reputation for quality and innovation
Premium brand dedicated to the Brazilian domestic market (South Region)
1 dedicated plant for processed products and 2 breaded plants 4 feed factories 6 hatcheries Grand parents (2.8 M females/year) Growing breeders (2.2 M females/year) Hatching eggs production (6.3 M eggs/week)
Sourcing
Product
Market
Distrib.
Middle East
LatAm
Markets Japan
Korea
Asia
Eastern Europe
Greece
CIS
(1)
PG.
14
Source: Company
Domestic Markets
15% 8% 7%
Sales 2011
( By Market )
83%
Poultry Pork Processed Others Poultry Pork
70%
Processed Others
295,178 tons 3% 4% 6%
69,645 tons 1% 7% 5%
Volume 2011
(364,823 Tons)
87% 87%
Poultry Pork Processed Others Poultry Pork Processed Others
Source: Company
PG.
15
Slaughter Plants
The Company has plants strategic located in the State of Rio Grande do Sul and Mato Grosso do Sul.
1A
Montenegro I Poultry Area (m): 30,498 Capacity (heads / day): 550,000 Production 2010 (tons): 148,863 Montenegro II Processed Products Area (m): 11,885 Capacity (tons / day): 180 Production 2010 (tons): 78,273 Ana Rech Pork Area (m): 23,419 Capacity (heads / day): 3,000 Production 2010 (tons): 55,227 Passo Fundo Poultry Area (m): 25,511 Capacity (heads / day): 430,000 Production 2010 (tons): 162,050 Caarap Poultry Area (m): 8,710 Capacity (heads / day): 127,000 Production 2010 (tons): 37,507
RR
AP PA TO MT GO MS MG SP PR SC RS RJ ES
AM AC RO
MA PI BA
CE
1B
RN PB PE AL SE
3 2 1
Poultry Site Pork Site
PG.
16
Investment Highlights
JBS Frangosul
Increase in the poultry consumption Expanding poultry market Limited production capacity in the biggest consuming countries New markets opening up to importations
Intrinsic advantages
No religion barriers Low production costs compared to other protein sources Fast production cycle
One of the worlds leading producers Leading Company Sizable asset with a production capacity of ~365,000 tons (2011) Brazils 3rd largest poultry exporter
JBS Frangosul
Multi concept operations
PG.
17
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.