JBS Presentation July

July 2010

2

Our MissionTo be the best at 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 for all our employees.

Our ValuesExcellence

Planning

Determination

Discipline

Availability

Openness

Simplicity

Who We Are

Agenda

3

Market Overview

1Q10 Highlights

Short Term Outlook

Company Overview

JBS at a Glance

4

Founded in the 1950’s in Central West Brazil

IPO in 2007

Leading protein producer and third largest food company in the World

Revenues of about USD 30 billion per annum

125,000 employees worldwide

Market cap of approximately USD 10,7 billion*

Shareholders

5*April and May/2010

Controlling Holding55,5%

BNDESPAR17,3%

Market19,1%

PROT - FIP8%

Average daily trade volume of USD 34,1 million*

Growth Company (Net Revenues – R$ mm)1

World’s Largest Food Companies 2009 Net Revenues (US$ bn)1

Company at a Glance

JBS – A Leading Global Food Company

6

• World’s largest protein producer (chicken,

beef, pork and lamb) with a global and

diversified low cost production platform

• We’ve been focusing our sales growth mainly

in exports and Emerging Markets, the sum of

which represent approx. 40% of JBS 2009

sales

• We’ve been expanding our margins through

a wide range of value-added products,

expanding worldwide distribution capabilities

and developing our brands, such as: Swift,

Maturatta, Friboi, Montana, Cabaña Las Lilas,

Bertin, King Island, 1855, Pilgrim’s Pride, Gold

Kist, Vigor and Leco

• World’s largest hides/leather processor

• Significant producer of dairy products in Brazil

650 890 1.212 1.289 1.912 3.501 3.709 4.302

14.142

30.340

55.224

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

CAGR

56%

Source: BloombergNote: 1 Pro forma figures

Nes

tle

Kra

ftFo

od

s

JBS

Tyso

n

Gen

eral

Mill

s

BR

F

Co

nA

gra

Smit

hfi

eld

Hei

nz

Cam

pb

ell

Sou

ps

Ho

rmel

95

4030 27

15 14 13 12 10 8 7

Protein Companies

66 147 165327 399

548 602

1,156

3,058

2001 2002 2003 2004 2005 2006 2007 2008 2009

JBS – A Growth Company

7

EBITDA (R$mm)

.

Bertin Merger

Pilgrim’s Pride

JBS Hides

5 new units

Tasman

Smithfield Beef

Five RiversInalca

Swift Foods Co.

SB Holdings Venado Tuerto Pontevedra(CEPA)

CAGR (1999-2009): 58%

1999 2006 – pre IPO 2009

% of total revenues of R$650mm % of total revenues of R$4.3bn % of total revenues of R$55.2bn

Beef Beef

Industrialized/

Further

Processed

Beef

Poultry

Industrialized/

Further

Processed

Pork

100%

23%

77%

52%

13%

6%

29%

8

World Beef Producers World Pork Producers World Chicken Producers

Global Low Cost Production Platform

Total Number of Plants

65

33

3

6

3

10 544

OthersBrazil

EU

34%16%

14%

21%

10%China

5%

IndiaUS

OthersBrazil

EU

17%

3%

10%48%

China

22%

US

Others

Brazil

EU

34%

15%

22%

17% China

12%

US

8 33 3 1

Global Low Cost Production Platform (cont’d)

9

Chicken (€ /kg slaughtered chicken) Pork (€/Kg live weight)

Cattle Cost (US$/kg cwe)

Source: LEI – Wageningen University and Research Center (2007) Source: Rabobank (2006)

0,51 0,520,65

0,74 0,75 0,77 0,79 0,85

0,901,07

1,28 1,35 1,351,46

1,56

Source: World Beef Report (March 2010)

2,54 2,69 2,71 2,713,19

4,04

Leading, Sizeable and Diversified Business Platform

10

1stRanking

Well-

Recognized

Brands

Production

Units

Geographic

Presence

and Installed

Capacity

2nd

3rd 1st 3rd 1st

Global Global U.S.A. Global Brazil Global

Beef

41.2

1.1

6.7

28.6

8.7

3.0

1.0

‘000 heads/day:

6.9

0.7

mm heads/day:

48.5

‘000 heads/day: ‘000 hides/day:

1.4

‘000 tons/day:

4.5

23.0

‘000 heads/day:

Total: 90.3 Total: 7.6 Total: 48.5 Total: 91.4 Total: 1.4 Total: 27.5

Chicken Pork Hides / Leather Dairy Lamb

65 33 3 26 7 6

55.6

28.6

6.0

1.2

Strong Track Record of Acquisition Integration and TurnaroundJBS USA Margin Improvement

11

Pre-acquisitions Post JBS’ Ownership

At Acquisition JBS Management

Acquisition of Pilgrim’s Pride

• US$ 800 million (64% stake)

2008Acquisition of Smithfield Beef2

• EV of US$ 565 million

Achieved consolidated EBITDA of US$163mm2, even during the crisis

2007Acquisition of Swift

• EV of US$ 1.5 billion

Took EBITDA from US$96.3mm to nearly

US$375mm2

8.1x EV/EBITDA

15.1x EV/EBITDA

3.5x EV/2008EBITDA

3.9x EV/2008EBITDA

2009

Stock price Sept/09: ~US$5.8

Stock price April 6, 2010: US$10.9

Market Cap :US$1.3 bi

Market Cap3:US$2.4 bi

Notes: 1 Assumes 2-month operation of Smithfield Beef in 20082 Assumes 12-month operation of Smithfield Beef in 2008

3 Pilgrim’s Pride Market Cap as of April 6, 2010

236 193

21

(31)

398 451

2004 2005 2006 2007 2008 2009

2,5%2,0%

0,2%

3,2% 3,4%

(0.3%)

1

Our Strategy

12

Production platform

Sales and distribution platform

Value added products

Branding

JBS’ Value & Strategy

EBITDA Margin

Financial structure

Experienced management

Cost reduction, process

optimization

Risk management

• Developed an efficient and diversified global production platform

• Expanding a global distribution platform to reach end clients

• Customized and further processed products for the end users

• Associating quality and branding to increase client loyalty

Rationale

Distribution Platform with Access to Key Markets

13

Protein Consumption in Key Markets (millions of Ton, 2009E)

DC’s and Sales Offices

Growth 1

2 %

5 %

8 %

Growth 1

7 %

16 %

25 %

Growth 1

9%

8%

13 %

Growth 1

4 %

3 %

-2 %

Total: 46 mm ton Total: 74 mm ton Total: 86 mm ton

Asia & Middle East

13

North America

15

Europe

8

Latin America

10

28%17%

22%

33%

Asia & Middle East

30

North America

21

Europe

12

Latin America

1141%

16%

15%

28%

Asia

51

North America

11

Europe

21

Latin America

359%

24%

3%

13%

1 Real growth of total consumption in tons – 2010E to 2015ESource – OECD-FAO

Agenda

14

Market Overview

1Q10 Highlights

Short Term Outlook

Company Overview

Market Highlights

15

• Domestic growth in Brazil remains strong

• Input cost consistently attractive, including grain prices

• Signs of growing importance of international trade with increased demand

in all major importing markets

• Consistent increase in US Exports to more diverse destinations

• Declining production in Europe

Animal protein consumption growth in the last decade

16

3

Source: FAPRI February 2010

7.5%

29%

32.2%

70.2%

41.4%

47.7%

23.7%

23.3%

48.7%

North America

Central

America

South America

Sub Saharan

Africa

Middle EastSoutheast

Asia

East Asia

Former USSR

Oceania

EU - 27

Agenda

17

Market Overview

1Q10 Highlights

Short Term Outlook

Company Overview

Highlights for the 1st Quarter 2010

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• Net Revenue increased by 35.4%, from R$9,267.9 million in 1Q09 to R$12,550.3 million

in 1Q10, mainly due to the incorporation of Bertin and acquisition of Pilgrim’s Pride.

• The 1Q10 consolidated EBITDA increased 307.5% compared to the same period in 2009,

from R$211.5 million to R$862.0 million. The EBITDA margin was 6.9% for the period,

compared with 2.3% for 1Q09.

• Net Profit of R$99.4 million in 1Q10, compared to a net loss of R$322.7 million in 1Q09.

• Beef US posted EBITDA of US$170.5 million, on margin of 6.0%, a record for 1Q.

• In Mercosul, JBS posted EBITDA of R$352.6 million, with 11.9% margin.

JBS Consolidated Results

19Source: JBS

EBITDA Margin (%)

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

211,5

384,0

291,9

397,8

862,0

2,3%

4,1%3,5%

5,4%

6,9%

1Q09 2Q09 3Q09 4Q09 1Q10

9.267,9 9.255,08.379,9

7.408,9

12.550,3

1Q09 2Q09 3Q09 4Q09 1Q10

Performance by Business Units

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JBS MERCOSUL

1,41,7 1,7 1,7

3,0

1Q09 2Q09 3Q09 4Q09 1Q10

53,582,6

47,3

112,2

352,6

3,7%

4,9%

2,9%

6,6%

11,9%

1Q09 2Q09 3Q09 4Q09 1Q10

INALCA JBS

144 144 146 141 138

1Q09 2Q09 3Q09 4Q09 1Q10

5,6

6,6

9,7

7,0

10,1

3,9%

4,6%

6,6%5,0%

7,3%

1Q09 2Q09 3Q09 4Q09 1Q10

Net Sales (R$ billion)

EBITDA (R$ mi) EBITDA margin

Net Sales (€ million)

EBITDA (€ mi) EBITDA margin

Source: JBS

EBITDA Margin (%)

Performance by Business Units

21

2,7

2,9 2,8 2,8 2,8

1Q09 2Q09 3Q09 4Q09 1Q10

59,7

104,6 108,4126,0

170,5

2,2%

3,6% 3,8%4,5%

6,0%

1Q09 2Q09 3Q09 4Q09 1Q10

526554 559 606

646

1Q09 2Q09 3Q09 4Q09 1Q10

7,5

24,7

15,3

28,6

34,9

1,4%

4,5%

2,7%

4,7%5,4%

1Q09 2Q09 3Q09 4Q09 1Q10

1,7 1,6

1T09 1T10

80,8

59,5

4,8%3,6%

1T09 1T10

Net Sales (US$ billion) Net Sales (US$ million) Net Sales (US$ million)

EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin EBITDA (US$ mi) EBITDA margin

JBS USA (Beef)Including Australia

JBS USA (Pork) Pilgrim’s Pride Corporation

Source: JBS

EBITDA Margin (%)

Debt

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• Net debt / EBITDA ratio remained at 3.1x q-o-q. Gross debt declined 5.7%, while Net Debt

increased 12.2%, reflecting working capital requirements to ramp up recent acquisitions, as well as

investments in fixed assets, further impacted by FX fluctuations.

• The vast majority of the company’s short term debt is composed of revolving trade finance credit

lines.

• As demonstrated below, the percentage of short term debt was 40% in 1Q10, compared with 37%

in 4Q09 and 47% in 1Q09.

Source: JBS

Net Debt/ EBITDA EBITDA pro-forma

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

2,5 2,6

3,3 3,1 3,1

1Q09 2Q09 3Q09 4Q09 1Q10

47%37% 40%

53%63% 60%

1Q09 4Q09 1Q10

Short term Long term

Revenue Distribution by Market

23

Domestic

Market77%

Exports 23%

Domestic

Market78%

Exports 22%

1Q10 1Q09

JBS Consolidated Exports Distribution

24

Japan16%

E.U.16%

USA11%Mexico

9%

Russia8%

South Korea6%

China5%

Hong Kong5%

Canada4%

Middle East4%

Taiwan2%

Others14%

JBS Exports 1Q10 JBS Exports 1Q09

US$ 1,765.4 Million US$ 901.4 Million

Agenda

25

Market Overview

1Q10 Highlights

Short Term Outlook

Company Overview

A Closer look at synergies – Pilgrim’s Pride

26

US$35mn

US$30mn

US$50mn

US$50mn

US$35mn

US$20mn

US$220mn

Description Size Timing

Transportation

Suppliers

G&A

Logistics optimization

Corporate

Exports

Total

Review of contract terms with carriers

Review of contract terms with packaging and other suppliers

Review of service contracts (e.g. Legal, insurance and IT)

Increase efficiency in average weight per truck

Streamlining of corporate structure and headquarters closure

Reach-out to end clients through JBS existing sales network 2010

1H10

Pilgrim’s Pride Acquisition: Synergies of over US$220mm/year

1H10

2 years

A Closer look at synergies – Bertin S.A.

27

R$45mn

R$20mn

R$40mn

R$35mn

R$245mn

R$100mn

Hides / Leather

Logistics

Corporate/G&A

Suppliers

Industrial Processes

Exports

Total R$485mn

Value enhancement through further processing

Review of transportation contracts

Offices, personnel, services contracts and third parties

Review contract terms of non core suppliers (e.g. packaging)

Optimization of fixed costs and rationalization of existing contracts

Maximization of the combined sales channels and review of freight contracts

Description Size Timing

1H10

1H10

2 years

2010

Association with Bertin: Synergies to Achieve at Least R$485mm/year

28“In God We Trust, Nature We Respect”

IR Contacts:

[email protected]

+55 11 3144 4447

www.jbs.com.br/ir