May, 2010

JBS S.A.

0 0

In God We Trust, Nature We Respect

Our Values
Excellence Planning Determination Discipline Availability Openness Simplicity
1

Agenda

Company Overview

Market Overview

4Q09 Highlights

Short Term Outlook

Company Overview

JBS S.A. at a Glance

Founded 1953 in central Brazil IPO in 2007 Ibovespa ticker: JBSS3 ADR ticker: JBSAY

Leading animal protein producer in the World Production platform in South America, North America, Europe and Oceania 125,000 employees worldwide Revenues of about US$ 30 Billion per annum Market cap of R$ 22 billion*

*Source: Bloomberg 25/02/2010 4

JBS S.A. Growth Through Acquisitions

JBS History has been built through more than 30 acquisitions in 15 years with adequate capital structure and management
Net Sales (in US$ billion) Companies and assets acquired

Inalca Swift Foods Co. Maring (Amambay) Berazategui (Rio Platense) Colonia Caroya SB Holdings JV Beef Jerky Rio Branco Venado Tuerto Pontevedra (CEPA)

Bertin Association Pilgrims Pride JBS Hides 5 new units

Tasman Smithfield Beef Five Rivers

Goinia (Anglo)

Barretos (Anglo) Pres. Epitcio (Bordon) Campo Grande (Bordon)

Cacoal 1 Cacoal 2 Porto Velho Vilhena (Frigovira)

30.3

Barra do Garas (Sadia) Araputanga (Frigoara)

Andradina (Sadia)

Cceres (Frigosol) Iturama (Frigosol)

Pedra Preta (Frigo Marca) Rosrio (Swift ARG) San Jose (Swift ARG)

19.8

12.7

0.3 1996

0.4 1997

0.4 1999

0.5 2000

0.5 2001

0.4 2002

0.7 2003

1.2 2004

1.5 2005

1.9
(1) (2) (3)

2006

2007

2008

2009

R$/US$ end of the year quotation

Source: JBS (1) Pro Forma JBS S.A. LTM Dec07 (2) Pro Forma JBS S.A. LTM Dec08 (3) Pro Forma JBS S.A. LTM Jun09 (including 5 new units and hides operation); Pilgrims Pride Sep09 (Estimated); Bertin LTM Jun09 5

EBITDA Growth

JBS remains a Growth Company.

3.058

11,0%

9,7%

10,5% 11,2%

13,6% 5,5% 3,8% 1.156

4,92%

5,73%

6,0% 4,3%

345 32 51 73 150 185

432

548

602

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009*

EBITDA (R$ mm)

*Pro forma including Bertin and Pilgrims Pride. Source: JBS 6

EBITDA Margin

Our Strategy
2005/2006 Adequate Financial Structure 2007/2008 Global Production Platform 2009/2010 Global Sales & Distribution Platform 2011/2012 Value Added Products & Branding

Debt for Working Capital Equity to Finance Growth

High liquidity level. Debt equalized to cash generation. Strong cash position. Access to international capital markets to finance growth. Development of long term financing plan. Use of export platform to grow. Hands-on working capital management. -

South America North America Australia

European Union
Access to raw material supply globally. Leader in countries with surplus production. Scale. Leader in exports globally. Access to all meat markets. Exchange of best practices. Efficiency cost gains. Cost reduction opportunities. Margin improvements.
-

South America North America

Fresh Products
Cooked Products Minced Products

Australia
European Union

Cured Products

Asia Russia Africa Middle East

Integrate the sales and distribution platform to serve efficiently, local and external markets, small retailers, food processors, restaurants, and other customers globally. Sales force distributed over the globe. Efficiency on selling the best product, to the best market, with the best price. Cost reduction on sales and transport. Margin improvements.

Ready to Eat Products Case Ready Products Global Brands

Marketing Investments
High technology investments to produce value added products. Increase value added products portfolio. Customized products to each market. Convenience to consumers day to day. Brand and Quality recognition and leadership. Marketing investments to be present in consumer minds. Margin improvements.

Our Strategy

Branding Value Added Products Sales & Distribution Platform Production Platform
Financial Structure Experienced Management
Cost Reduction, Productivity, Process Optimization

4+%
Risk Management
EBITDA Margin

FOUNDATION
8

Corporate Structure

Batista Family

Bertin Family

Controlling Holding 59%

Market (Free Float)

41%

JBS S.A.
(including Bertin)

BNDES 80% - 75% US$ 2 Bn

100%

Other subsidiaries

JBS U.S.A. Includes AUS

20% - 25%

64%

Other shareholders 36%

Pilgrims Pride

Shareholders

Foreign Investors 10% Individual 1%

Others 10%

BNDESPAR 19%

Controlling Holding 59%

10

Global Production Platform

Production Units JBS Brasil 61

Employees 47,186

Daily Slaughter Capacity 43,400 B

JBS MERCOSUR

6,504

8,400 B 28,600 B 48,500 P 4,500 S 7,200,000 C 8,690 B 20,000 S

JBS USA

16

24,167

Pilgrims Pride

37

36,471

JBS Austrlia

10

6,302

Inalca JBS

2,314

3,000 B 92,090 48,500 24,500 7,200,000 B P S C

Total

140

122,944

(B) Beef; (P) Pork; (S) Smalls; (C) Chicken

11

Market Overview

12

Market Highlights

Robust domestic consumption in Brazil. Growing middle classes in the Emerging Market sourcing more product through imports. Recovery of exports from US allied with improved domestic American consumption. European protein production declining. Gradual Improvement in exports generally with the reduction and/or removal of trade barriers.

13

Per capita food consumption curve (Kg / Year)

180
1969/ 71

160 140 120 100 80 60 40 20 0

1979/ 81 1989/ 91 1999/ 01 2030 2050

Cereals
Source: FAO

Roots and Tubers

Beans, Peas and Lentils

Sugar

Oils Crops and its products

Meat

Milk and its products

14

Brazilian Beef exports (Thousand Tons)

1,600 1,425 1,400 1,263 1,200 1,000 800 600 400 200 0 2003 E.U. 2004 Russia Egypt 2005 Venezuela 2006 Algeria 780 1,095

1,491

1,218 1,086

2007 USA

2008 Hong Kong

2009 Others

Source: Secex
15

US Beef and Veal Exports (Million Pounds)

3.000 2.467 2.269 1.888 2.520

2.500

2.412

2.449

2.000

1.867

1.500 1.146 1.000 697 500 461

1.433

0 1999 Mexico 2000 Canada 2001 2002 2003 Japan 2004 Vietnam 2005 China 2006 Hong Kong 2007 2008 2009 Others

South Korea

N etherlands

Source: USDA ERS

16

US Pork Exports (Million Pounds)

5.000 4.500 4.000 3.500 2.995 3.000 2.500 2.000 1.560 1.500 1.000 500 0 1999 Japan 2000 China 2001 Hong Kong 2002 2003 Mexico 2004 Russia 2005 Canada 2006 2007 1.278 1.287 1.612 1.717 2.181 2.667 3.142

4.667 4.128

2008 Australia

2009 Others

South Korea

Source: USDA ERS

17

US Poultry Exports (Million Pounds)

8.000 7.109 7.000 6.070 6.000 4.980 5.000 4.000 3.000 2.000 1.000 0 1999 Russia 2000 2001 2002 Iraq 2003 Mexico 2004 2005 Canada 2006 Cuba 2007 2008 2009 Others 5.138 5.738 5.333 4.942 5.013 4.997 5.367 6.906

China (Mainland)

Other Chicken

Source: USDA ERS

18

Strong Long-term Industry Fundamentals

Meats Consumption Per Capita

Recommended consumption 80kg/capita Per capita consumption (kg/capita)

Population growth coupled with rising worldwide standards of living will drive an increase in protein demand on emerging global middle class
Source: FAO 19

4Q09 Highlights

20

Highlights for the 4th Quarter 2009

Net Profit of R$127.9 million in 4Q09. Net Revenue for 2009 was R$34,311.8 million, representing a 13.1% increase y-o-y. In 4Q09 the consolidated EBITDA increased 49.6% compared to 4Q08, from R$265.9 million to R$397.8 million. The consolidated EBITDA margin was 5.4% for the period, compared with 2.8% for 4Q08 Completion of the Bertin S.A. Merger and the acquisition of a controlling interest in Pilgrims Pride Corporation. A pro forma Net Revenue in 2009 of R$55,223.6 million, 82.0% higher than 2008. EBITDA pro forma of R$3,058.0 million in 2009, increase of 164.5% over the previous year.

21

JBS Consolidated Results

Net Revenue (R$ million)

EBITDA and EBITDA Margin (R$ million)

13.1%

11.2%

-3.8%

-0.1%

-9.5%

-11.6% -20.4% 81.6% -24.0% 36.3%

Source: JBS EBITDA Margin (%) 22

Performance by Business Units

JBS USA (Beef)
Including Australia

JBS USA (Pork)

Net Sales (US$ million)

INALCA JBS
Net Sales
( million)

JBS MERCOSUL
Net Sales
(R$ billion)

Net Sales
(US$ billion)

2.8

2.9 2.7

2.8

2.8

600

526

554

559

606

1 62 1 44

1 44

1 46

1 41

1 .6

1 .7 1 .4

1 .7

1 .7

4Q08

1Q09

2Q09

3Q09

4Q09

4Q08

1Q09

2Q09

3Q09

4Q09

4Q08

1Q09

2Q09

3Q09

4Q09

4Q08

1Q09

2Q09

3Q09

4Q09

EBITDA (US$ mi) EBITDA margin

4.5%

EBITDA (US$ mi) EBITDA margin

4.3% 4.5% 1 .4% 2.7% 4.7%
5.1%

EBITDA ( mi) EBITDA margin

6.6% 3.9% 4.6% 5.0%

EBITDA (R$ mi) EBITDA margin

3.6% 2.2% 2.2%

3.8%

9.7 8.3

1 04.6 60.4 59.7

1 08.4

1 26.0

6.6

7.0

25.6 7.5

24.7 1 5.3

28.6

5.6

4Q08

1Q09

2Q09

3Q09

4Q09

4Q08

1Q09

2Q09

3Q09

4Q09

4Q08

1Q09

2Q09

3Q09

4Q09

Source JBS EBITDA Margin (%)

23

Debt

The Net Debt/EBITDA reduced from 3.3x in 3Q09 to 3.1x in 4Q09. JBS raised US$2.0 billion by issuing two million Debentures. The companys cash position is sufficient to cover, almost entirely, the short term debt of JBS Current assets exceed current liabilities by almost 50%, demonstrating the liquidity of the Companys balance sheet.
Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million)
14,429.8

5,479.6

*
63% 62%

37%

38%

2009
Source: JBS Net Debt/ EBITDA EBITDA pro-forma * LTM including Bertin and Pilgrims Pride pro-forma.
Short Term Long Term

2008

24

Revenue Distribution by Market

2009

2008

E x ports 23%

E x ports 33%

Domes tic Market 77%

Dom e stic Ma rke t 67%

Source: JBS
25

Source: JBS

JBS Consolidated Exports Distribution

JBS Exports 2009

JBS Exports 2008

US$ 5.0 billion

US$ 5.6 billion

Taiwan 2% China 4% USA 5% Hong Kong 6% South Korea 6%

Others 19%

Japan 13% E.U. 11% Russia 10% Mexico 8% Canada 8%

USA 3% Taiwan 4% South Korea 4%

China 3%

Others 15%

Mexico 18% Russia 13%

Middle East 7%

Canada 8%

Japan 9%

E.U, 11%

Hong Kong 5%

Africa and Middle East 7%

Source: JBS

26

Short Term Outlook

27

A Closer look at synergies Pilgrims Pride

USD 95 Million already captured, through initiatives in the personnel, transportation, and

packaging supply areas.

USD 65 Million further by mid year, principally through G&A, exports, and logistic efficiencies.

USD 200 / 300 Million total annual synergies.

Pilgrims Pride Stock Price
12

Closing of the acquisition Announcement of the PPC acquisition by JBS

10

0 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09

28

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Source: Bloomberg

A Closer look at synergies Bertin S.A.

R$145 million implemented by end of 1Q10 in packaging,

industrial processes, formulation and corporate.

R$100 million further synergies to be realized particularly at

corporate and exports in the coming six months.

Total annual synergies expected to reach R$500 million by

2011.

29

Thank You

IR Contacts: ir@jbs.com.br +55 11 3144 4055 www.jbs.com.br/ir

In God We Trust, Nature We Respect

30 30