En jbs apresentação

May, 2010

00 “In God We Trust, Nature We Respect”

JBS S.A.

Our ValuesOur Values

Excellence

Planning

Determination

Discipline

Availability

Openness

Simplicity

1

Agenda

Company Overview

Market Overview

4Q09 Highlights

Short Term Outlook

2

Company Overview

3

JBS S.A. at a Glance

• Founded 1953 in central Brazil

• IPO in 2007• 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• 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

Inalca

Swift Foods Co.

Maringá (Amambay)

Berazategui

Bertin Association

Pilgrim’s Pride

JBS Hides

5 new unitsmanagement

Cáceres

(Frigosol)

Iturama

(Frigosol)

Araputanga

(Frigoara)

Barretos (Anglo)

Pres. Epitácio (Bordon)

Campo Grande (Bordon)

Pedra Preta

(Frigo Marca)

Rosário

(Swift ARG)

San Jose

(Rio Platense)

Colonia Caroya

SB Holdings

JV Beef Jerky

Venado

Tuerto

Pontevedra

(CEPA)

Rio Branco

Cacoal 1

Cacoal 2

Porto Velho

Vilhena (Frigovira)

Andradina

Barra do

Garças

(Sadia)

Tasman

Smithfield

Beef

Five Rivers

5 new units

Net Sales (in US$ billion)

Companies and assets acquired

12.7

19.8

30.3Goiânia

(Anglo)

(Frigosol) San Jose

(Swift ARG)Andradina

(Sadia)

R$/US$ end of the year quotation

(1) (2) (3)

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); Pilgrim’s Pride Sep09 (Estimated); Bertin LTM Jun09

0.3 0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 1.9

12.7

1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

5

EBITDA Growth

• JBS remains a Growth Company.

1.156

3.058

4,92%5,73% 6,0%

11,0%9,7%

10,5%

11,2%

13,6%

4,3% 3,8%

5,5%

*Pro forma including Bertin and Pilgrim’s Pride.Source: JBS

6

32 51 73150 185

345432

548 602

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

EBITDA (R$ mm) EBITDA Margin

Our Strategy

2005/2006Adequate Financial Structure

2005/2006Adequate Financial Structure

2007/2008Global Production

Platform

2007/2008Global Production

Platform

2009/2010Global Sales & Distribution Platform

2009/2010Global Sales & Distribution Platform

2011/2012Value Added Products &Branding

2011/2012Value Added Products &Branding

South AmericaSouth AmericaDebt for Cooked Products

Fresh ProductsFresh Products

North America

Australia

European Union

Asia

Russia

Africa

Middle East

America

North America

Australia

European Union

Debt forWorkingCapital

Equity Equity to

FinanceGrowth

Cooked Products

Case ReadyCase ReadyProducts

Global Brands

MarketingMarketingInvestments

Minced Products

Cured Products

Ready to EatReady to EatProducts

- 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.

- 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.

- 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.

Middle EastUnionGrowthGrowth 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.7

Our Strategy

Branding

Value Added

Products

Sales & Distribution

Platform

8

FOUNDATION

4+%Production Platform

Financial

Structure

Experienced

Management

Cost Reduction, Productivity,

Process

Optimization

Risk

Management

EBITDA

Margin

Batista Family Bertin Family

Corporate Structure

Batista Family Bertin Family

Controlling

Holding

Market (Free Float)

JBS S.A.

(including Bertin)BNDES

59% 41%

100% 80% - 75%

US$ 2 Bn

JBS U.S.A. Includes AUS

Pilgrim’s Pride

Other

subsidiaries20% - 25%

64%Other

shareholders

36%

9

Shareholders

Foreign Others

10%

Controlling

Holding

59%

BNDESPAR

19%

Individual

1%

Investors

10%

10%

10

Production Units Employees Daily Slaughter Capacity

Global Production Platform

28,600 B48,500 P

4,500 S

8,690 B

JBS Brasil 61 47,186 43,400

JBS MERCOSUR

JBS USA

JBS Austrália

8

16

10 6,302

24,167

B

B

CPilgrims Pride 37 36,471 7,200,000

8,400 6,504

20,000 S

92,090 B48,500 P24,500 S

7,200,000 C

140

3,000

JBS Austrália

Inalca JBS

10

8

Total 122,944

2,314

6,302

B

(B) Beef; (P) Pork; (S) Smalls; (C) Chicken11

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)

1801969/ 71

40

60

80

100

120

140

1601969/ 71

1979/ 81

1989/ 91

1999/ 01

2030

2050

0

20

Cereals Roots and

Tubers

Beans, Peas

and Lentils

Sugar Oils Crops

and its

products

Meat Milk and its

products

Source: FAO

14

Brazilian Beef exports (Thousand Tons)

1,4911,425

1,400

1,600

1,086

1,2181,263

1,095

780

200

400

600

800

1,000

1,200

1,400

Source: Secex

0

200

2003 2004 2005 2006 2007 2008 2009

E.U. Russia Egypt Venezuela Algeria USA Hong Kong Others

15

2.5202.4492.467

2.4122.500

3.000

US Beef and Veal Exports (Million Pounds)

1.8671.888

1.433

1.146

697

461

2.2692.412

1.000

1.500

2.000

2.500

Source: USDA ERS

461

0

500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mexico Canada South Korea Japan Vietnam China Hong Kong Netherlands Others

16

4.128

4.667

4.500

5.000

US Pork Exports (Million Pounds)

3.1422.995

2.667

2.181

1.7171.6121.560

1.2871.278

1.000

1.500

2.000

2.500

3.000

3.500

4.000

Source: USDA ERS

0

500

1.000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Japan China Hong Kong Mexico Russia Canada South Korea Australia Others

17

6.9067.109

7.000

8.000

US Poultry Exports (Million Pounds)

6.070

5.3675.333

4.9975.0134.942

5.738

5.1384.980

2.000

3.000

4.000

5.000

6.000

Source: USDA ERS

0

1.000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Russia China (Mainland) Iraq Mexico Canada Cuba Other Chicken Others

18

Strong Long-term Industry Fundamentals

Meats Consumption Per Capita

Recommended

Per capita consumption

(kg/capita)

Recommended consumption 80kg/capita

Source: FAO

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

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. • 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 Pilgrim’s Pride Corporation.

• A pro forma Net Revenue in 2009 of R$55,223.6 million, 82.0% higher than 2008. • 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%

Source: JBS

EBITDA Margin (%)

-11.6%

36.3%

-3.8%

-20.4%

-0.1%

81.6%

-9.5%

-24.0%

22

Performance by Business Units

Net Sales(US$ billion)

JBS USA (Beef)Including Australia

Net Sales

(US$ million)

JBS USA (Pork)

Net Sales(€ million)

INALCA JBS

Net Sales(R$ billion)

JBS MERCOSUL

EBITDA (US$ mi) EBITDA margin

EBITDA (US$ mi) EBITDA margin

EBITDA (€ mi)

EBITDA marginEBITDA (R$ mi) EBITDA margin

2.82.7

2.9 2.8 2.8

4Q08 1Q09 2Q09 3Q09 4Q09

600 526 554 559606

4Q08 1Q09 2Q09 3Q09 4Q09

162144 144 146 141

4Q08 1Q09 2Q09 3Q09 4Q09

1.61.4

1.7 1.71.7

4Q08 1Q09 2Q09 3Q09 4Q09

Source JBS

EBITDA Margin (%)

108.4126.0

104.6

59.760.4

2.2% 2.2%

3.6% 3.8%4.5%

4Q08 1Q09 2Q09 3Q09 4Q09

25.6

7.5

24.7

15.3

28.6

4.3%

1.4%

4.5%

2.7%

4.7%

4Q08 1Q09 2Q09 3Q09 4Q09

8.3

5.66.6

9.7

7.0

5.1%3.9% 4.6%

6.6%

5.0%

4Q08 1Q09 2Q09 3Q09 4Q09

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 company’s 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 theCompany’s balance sheet.

Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million)

*

63% 62%

5,479.614,429.8

Source: JBS

Net Debt/ EBITDA EBITDA pro-forma

* LTM including Bertin and Pilgrim’s Pride pro-forma.

24

37% 38%

63% 62%

2009 2008

Short Term Long Term

Revenue Distribution by Market

2009 2008

E x ports

23%

Domes tic

Market

77%

E x ports

33% Dome stic

Ma rket

67%

Source: JBS Source: JBS

25

JBS Consolidated Exports Distribution

JBS Exports 2009 JBS Exports 2008

Mexico18%

Russia13%

E.U,11%Japan

9%Canada

8%

Middle East7%

Hong Kong5%

South Korea4%

Taiwan4%

USA3%

China3%

Others15%

US$ 5.6 billion

Japan

13%E.U.

11%

Russia

10%Canada

8%Mexico

8%

South Korea

Hong Kong

6%

USA

5%

China

4%

Taiwan

2%

Others

19%

US$ 5.0 billion

Source: JBS 26

Africa and Middle East

7%

South Korea

6%

Short Term Outlook

27

A Closer look at synergies – Pilgrim’s 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.

10

12

Announcement of the

PPC acquisition by JBS

Closing of the

acquisition

Pilgrim’s Pride Stock Price

28

0

2

4

6

8

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 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, • 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

3030

“In God We Trust, Nature We Respect”

IR Contacts:

[email protected]

+55 11 3144 4055

www.jbs.com.br/ir30