JBS S.A.

RESULTS 2007
MARCH 31, 2008

Presenters

Joesley Mendona Batista

CEO

Srgio Longo
Finance and IR Director

Rodrigo Gagliardi
Investor Relations Manager

Period Highlights

The conclusion of the investment plan in the USA and Australia, initiated in July 2007 through the Swift & Co acquisition. As announced it was realized the renewal of credit lines in the total amount of US$750 million. JBS net revenue increased 256.4%, from R$3,967.6 million in 2006 to R$14,141.6 million in 2007. The Companys EBITDA margin in 2007 was 4.18%, comprised by the 14.2% margin of JBS MERCOSUL and -1.1% margin of JBS USA; In the 4Q07, JBS MERCOSULs EBITDA margin was 15.1%. The pork division in JBS USA in the 4Q07 returned its highest EBITDA margin in the past 4 years: 6.8%. In the 4Q07, EBITDA margin of JBS Australia was 3.4%, the second highest EBITDA in the past 4 years. The companys results were negatively impacted by the exchange variation on investments made in the foreign subsidiaries. The acquisitions described in the recent events, allied with the positive atmosphere in the global beef trade and the improved margins in the USA in 2008, create a positive environment for JBS to achieve positive results this year.
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AGENDA

CONSOLIDATED RESULTS

RESULTS OF MERCOSUL

RESULTS OF JBS USA

QUESTIONS AND ANSWERS

JBS CONSOLIDATED RESULTS Net Revenue, EBITDA and EBITDA Margin

Net Revenue (R$ million) EBITDA and EBITDA Margin
EBITDA Margin (%)

25,500.0
9.1% 9.6% 14.2% 4.2%
5.0%

14,141.6

1,275.0

80.3%

564.9 286.8
20.3%

591.1

3,158.0

3,577.1

3,967.6
256.4%

345.1
115.7% 63.7% 4.6%

13.3%

10.9%

12M04
Source: JBS

12M05

12M06

12M07

2008*

12M04

12M05

12M06

12M07

2008*

*According to guidance published in 01/27/2008 without considering the acquisitions of National Beef, Smithfield Beef and Tasman.

JBS CONSOLIDATED RESULTS Net Income

Net Results (R$ million)

The net loss in 2007 were affected by the exchange rate variation on foreign currency investments in approximately R$160.0 million.
180.3

107.3 55.5

Exchange variations do not have a cash effect on the Company, and as such, did not impact the EBITDA. The dollar declined 7.9% against the real, and the Argentine peso fell 19.6% against the real.
-5.0 *

Excluding this effect, the Company would have registered a net loss of R$5.0 million for the 12M07. The net loss was also a consequence of the negative impacts of the beginning of the USA operations.

-165.0 12M04
Source: JBS

12M05

12M06

12M07

12M07*

* Net loss excluding the amounts relating to the exchange variation on permanent investments made in foreign subsidiaries.

Net Debt over Ebitda

Net Debt/Ebitda*

3.7x 3.3x

2.5x 2.3x

1Q07
Source: JBS

2Q07

3Q07

2007

* Pro-forma Consolidated

JBS CONSOLIDATED Sales Distribution

Sales Distribution by Division 2007 Sales Distribution by Market 2007

Beef Australia 15%

Beef Argentina 2%

Exports 32%

Pork USA 18%

Beef USA 46%

Domestic Market 68%

Beef Brazil 19%

Impacted by the USA domestic market

Source: JBS Pro-forma 2007

Source: JBS Pro-forma 2007

JBS CONSOLIDATED Exports Distribution

Exports Distribution 2007
Others 14% Taiwan 3% Hong Kong 3% China 5% Canada 5% Russia 7% South Korea 8% Mexico 12% USA 10% European Union 14%

Japan 19%

JBS Pro Forma Exports: ~US$ 3.8 billion

Source: JBS Pro-forma 2007

JBS Mercosul
EBITDA and margin EBITDA

9.1%

9.6%

14.2%

14.2%

692.5 564.9

345.1 286.8

20.3%

63.7%

22.6%

12M04
Source: JBS

12M05

12M06

12M07

JBS EUA e Australia

Beef USA Net Revenue (US$ million)
5,999

Pork USA Net Revenue (US$ million)

Beef Australia Net Revenue (US$ million)

5,604 5,579 5,461

1,577 1,751

1,981

2,243 2,070 2,175 1,491 570 598

1,871

1,745

1,914 516 595

FY04

FY05

FY06

FY07

3Q07
(1)

4Q07
(2)

FY04

FY05

FY06

FY07

3Q07
(1)

4Q07
(2)

FY04

FY05

FY06

FY07

3Q07
(1)

4Q07
(2)

EBITDA (US$ million) and margin EBITDA

Margin (%)

EBITDA (US$ million) and margin EBITDA

Margin (%)

EBITDA (US$ million) and margin EBITDA

5.7%
Margin (%)

0.7% -1.2% -1.7% 44.7

-0.4% -0.7%

6.7% 5.4% -5.8% 132.6 122.1 73.3 -101.6 70.3 15.5

FY04 FY05 FY06 FY07 3Q07
(1)

6.8%

2.9% 106.0
3.5% 3.2%

3.4% 1.7% 2.4%

2.7%

-19.8 -65.1 -97.1

FY04 FY05 FY06 FY07

-10.3

42.9
40.5

45.6 29.5

-0.3% 20.0

-1.3
4Q07
(2)

3Q07
(1)

4Q07
(2)

FY04

FY05

FY06

FY07

3Q07
(1)

4Q07
(2)

Sources: JBS, Swifts fiscal year used to be from june to may (1) 13 weeks ended 09/23/2007 (2) 14 weeks ended 12/30/2007

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USA Beef Price vs. Cattle Price

Spread Live Cattle / Beef Blended Cutout

155,00
Cattle / Cutout - US$/100 pounds

50,00 30,00

145,00 10,00 135,00 (10,00) (30,00) (50,00) 115,00 (70,00) 105,00 (90,00) 95,00 (110,00)
Spread (US$)/Head

125,00

jan/07

fev/07

mar/07

abr/07

mai/07

Spread/Head

jun/07

jul/07

Cattle Texas

ago/07

set/07

Blended Cutout
Source: Bloomberg, USDA

out/07

nov/07

dez/07

jan/08

fev/08
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JBS USA Adjusted Ebitda

Adjusted EBITDA1 EBITDA2 Swift - Beef Swift - Pork Swift - Australia Corporate and Others TOTAL Adjustments: Non-recurring Expenses Retention Plan3 Expenses Reductions - JBS USA4 14 weeks compared to 13 weeks5 Costs Increase in Production6 Beef US meat margin normalization7 Yield improvements subsequent to acquisition8 Subtotal Adjusted EBITDA
margin EBITDA

Dec. 30

-101.6 40.5 20.0 -

-41.1
1.5 1.8 2.3 31.8 95.4 3.2 136.0

94.9
3.3%

(1) (2) (3) (4) (5) (6) (7) (8)

Last 14 weeks ended 12/30/2007 in US GAAP and in US$; In millions of US$; Non-recurring expenses associated with the employee retention plan; Permanent reduction in selling, general and administrative expenses obtained so far by JBS USA; The quarter ended in December contained 14 weeks and the quarter ended in September contained 13 weeks; Costs associated with the higher production, the benefits of which will only be captured in the coming quarters; US beef margins were lower than historical levels during the quarter ended December 30, 2007; Improvements in product yields occurring after the acquisition date.
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QUESTIONS & ANSWERS

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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.

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