PRESENTERS
MANAGEMENT


                                                               CEO
                                          ...
MANAGEMENT



                                                                                      CEO
                  ...
OUR STRATEGY




                              * The closing of these transactions are subject to certain closing
        ...
JBS’ HISTORY HAS BEEN BUILT THROUGH MORE THAN 30
                           ACQUISITIONS IN 15 YEARS

                    ...
AGENDA
HIGHLIGHTS
JBS CONSOLIDATED RESULTS
             NET REVENUE, EBITDA AND EBITDA MARGIN




                                          ...
JBS: GLOBAL PRODUCTION & DISTRIBUTION PLATFORM


    The geographic diversification of its operations allows it to source ...
JBS DEBT PROFILE



 Leverage (US$ mm)                                          Cash and Debt Amortization (US$ mm)

  Net...
PERFORMANCE BY BUSINESS UNITS

     JBS USA (Beef)
    Including Australia                JBS USA (Pork)                  ...
HOW JBS IMPROVED SWIFT’S MARGINS


           EBITDA (US$ mi) EBITDA Margin                                               ...
JBS USA BEEF EXPORT VOLUMES
BEEF PRICE VS. CATTLE PRICE IN USA
JBS CONSOLIDATED – SALES DISTRIBUTION




                                  Be e f Argentina
                   Be e f Ita...
JBS CONSOLIDATED – EXPORTS DISTRIBUTION




                                                T aiwan Hong Kong
            ...
BRAZIL PRESUMING MARGINS PER HEAD IN DOLLAR




               120.0                                                      ...
GLOBAL CATTLE PRICES US$/Kg


4.25




3.75




3.25




2.75




2.25




1.75




1.25
   Jan-07 Feb-07 Mar-07 Apr-07 Ma...
FINAL CONSIDERATIONS
DISCLAIMER
2Q08 Conference Call Presentation
2Q08 Conference Call Presentation
2Q08 Conference Call Presentation
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2Q08 Conference Call Presentation

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2Q08 Conference Call Presentation

  1. 1. PRESENTERS
  2. 2. MANAGEMENT CEO Chairman Joesley Batista Italy Financial Investor Brazil Argentina Legal Luigi Director Relations Humberto Nelson Francisco Scordamaglia / Sérgio Jerry Magalhães Dalcanale de Assis e Silva Paolo Boni Longo O’Callaghan Mr. Humberto de Mr. Nelson Mr. Scordamaglia, Mr. Sérgio Longo, Mr. Francisco de Assis Mr. Jerry started his career as e Silva, General O’Callaghan holds a Campos Dalcanale has been serving Professor in the Counsel, holds a law degree in Magalhães holds has been working JBS as a Financial degree and a master Veterinary University Director since April Engineering from a degree in biology at JBS since 2001 degree in environmental of Perugia and as an UCC (University from Universidade and is currently 2003 and he has law from Pontifícia advisor in the legal College Cork) in Federal do Mato CEO of the division and QA departments been a member of Universidade Católica at Ireland. He JBS’ board of Paraná State, a master Grosso. He is in Argentina. of Inalca. appointed degree in corporate law immigrated to Brazil currently the chief Before joining JBS, CEO of Inalca in 2007 executive officers in 1979. Mr. and a master’s degree operating officer of he had 21 years of Mr. Paolo Boni holds since 2005. in public law from O’Callaghan entered the Brazilian experience in the a degree in Before joining JBS Universidade Mackenzie, the beef sector in division. Before meat industry accounting. Before he had over 25 and an MBE in labor 1983 and joined JBS joining JBS he had economics from in 1996 to develop joining JBS in years of experience over 25 years of Universidade de São International Trade 1999, he had over working in financial experience in the beef Paulo. He has been a for the group. He is 8 years of institutions. member of JBS’ board of currently our industry sector. He experience executive officers since Investor Relations’ has been a Board working in the Member of Inalca January 2, 2007 . Officer. meat industry since 1996. He has been working for JBS Group since December 2001.
  3. 3. MANAGEMENT CEO USA/AUS Wesley Batista Five Pork Trading CFO Smithfield Beef USA Australia Rivers Martin Brent André Beef David Colwell/ Iain Mars Mike Dooley Eastwood Nogueira Richard Vesta Tim Klein Thoren Mr. André * * * Mr. Iain Mars Mr. Martin Mr. Brent Mr. Richard Vesta Mr. David Colwell Mr. Thoren has Nogueira holds a was born in Dooley Eastwood had joined Smithfield holds a degree from served as CEO of degree in Economics England. Iain has worked for Swift & Foods following the University of South Five Rivers since the Holds a degree of from Universidade acquisition of Florida. David has Company’s been involved in Science in Company for over Federal Fluminense, Packerland in 2001 been the President of inception. the beef industry Biology/Medical 18 years. a master degree in and now serves as JBS Beef since 2007, Capital Markets from Mike received his for all his life. Mr Technology – He moved to the president and chief but will be replaced FGV – Fundacão Master of Science Mars was Eastern Illinois USA in 2007 to be operating officer of by Tim Klein, once/if degree in Getúlio Vargas, a appointed University - 1982 head of JBS Smithfield Beef the acquisition of Agricultural master degree in in President of JBS Marty has worked Trading USA, the Group. Smithfield Beef is Economics and his Economics from Australia in 2007, Swift Distribution Mr. Vesta will approved by U.S. degree in at Swift & Universidade de antitrust authorities. after the Company all his Centers USA and Brasilia in 2003. maintain its position Agribusiness from acquisition of the Global Trading running the David Colwell will still Washington State life, having started He worked for more Swift & Company. Smithfield Beef have a role as University. Mr. as a management Business (JBS). than 20 years in He joined JBS in Group/JBS executive in JBS Thoren will lead the trainee in 1983. Banco do Brasil and Packerland once/if USA, but his new cattle feeding 2005. joined JBS in 2007, He was appointed the acquisition of position has yet to be businesses once/if following the bought in 2007 to be the Smithfield Beef is defined. the acquisition of Swift & Co President of JBS approved by U.S. Smithfield Beef is acquisition. antitrust authorities. approved by U.S. Pork division. antitrust authorities. * The closing of these transactions are subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law
  4. 4. OUR STRATEGY * The closing of these transactions are subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law Mitigate Potential Risks as Sanitary Barriers & Seasonality
  5. 5. JBS’ HISTORY HAS BEEN BUILT THROUGH MORE THAN 30 ACQUISITIONS IN 15 YEARS Inalca National Beef Swift Foods Co. Net Sales (in US$ billion) Smithfield Beef Maringá (Amambay) Five Rivers Companies and assets acquired Berazategui (Rio Platense) (1) Colonia Caroya Tasman SB Holdings JV Beef Jerky Goiânia Barretos (Anglo) Rio Branco Venado (Anglo) Pres. Epitácio (Bordon) Cacoal 1 Tuerto 25.0 Campo Grande (Bordon) Cacoal 2 Pontevedra Porto Velho (CEPA) Vilhena (Frigovira) Barra do Pedra Preta Cáceres Garças (Frigo Marca) (Frigosol) (Sadia) Rosário Iturama (Swift ARG) (Frigosol) San Jose Araputanga Anápolis Andradina (Swift ARG) 12.7 (Sadia) (Frigoara) (Bordon) 1.5 1.9 0.7 1.2 0.3 0.4 0.4 0.5 0.5 0.4 1993 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008** R$/US$ end of the year cotation R$/US$: 1.59 Source: JBS * Pro forma JBS S.A. LTM Dec07 (includes JBS USA) ** Pro Forma JBS S.A. LTM Jun08 (includes JBS USA, Tasman and 50% of Inalca); National LTM May08; Smithfield Beef LTM Oct07; (1) The closing of these transactions are subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law
  6. 6. AGENDA
  7. 7. HIGHLIGHTS
  8. 8. JBS CONSOLIDATED RESULTS NET REVENUE, EBITDA AND EBITDA MARGIN 14.2% 9.6% 14,141.6 4.2% 4.1% 3.0% 7,129.5 564.9 591.1 5,859.1 3,967.6 345.1 3,577.1 290,8 176.3 12M05 12M06 12M07 1Q08 2Q08 12M05 12M06 12M07 1Q08 2Q08
  9. 9. JBS: GLOBAL PRODUCTION & DISTRIBUTION PLATFORM The geographic diversification of its operations allows it to source meat efficiently, serve its customers cost-effectively, capitalize on increasing international trade opportunities and helps to mitigate the potential impacts of sanitary barriers Exchange rates: US$12,214 R$ / US$ = 1.59 – 06/30/2008 US$ / €$ = 1,57 – 06/30/2008 US$866 5% US$46 74% Revenue Ebitda US$159 Revenue Ebitda US$3,348 21% US$353 Revenue Ebitda JBS Mercosul JBS USA / Australia Inalca JBS Source: JBS * JBS S.A. LTM Jun08, Pro forma JBS USA LTM Jun08 (includes Tasman) and Pro forma 50% of Inalca LTM Jun08
  10. 10. JBS DEBT PROFILE Leverage (US$ mm) Cash and Debt Amortization (US$ mm) Net debt Net debt/EBITDA 4.3 1551 3.8 3.7 1,459 2.9 2.8 592 637 192 52 1,381 1,337 2010 2011 After 2011 Jul-Dec 2009 investments Less than 1 1,191 Cash & year 1,138 Source: JBS Debt per Currency (June 2008) 566 Foreign currency 60% Real (R$) 40% 2005 2006 2007 1Q08 2Q08 Source: JBS Source: JBS Exchange rates: R$ / US$ = 1.59 – 06/30/2008
  11. 11. PERFORMANCE BY BUSINESS UNITS JBS USA (Beef) Including Australia JBS USA (Pork) INALCA JBS MERCOSUL Net Sales (US$ million) (US$ ) (€ ) (R$ ) 7,324 7,375 4,892 3,968 2,630 2,175 522 521 2,070 1,976 1,425 1,271 620 155 536 132 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 (1) (2) (1) (2) EBITDA (US$ mi) EBITDA (US$ mi) EBITDA (€ mi) EBITDA (R$ mi) margin EBITDA margin EBITDA margin EBITDA margin EBITDA Margem (%) Margem (%) Margem (%) Margem (%) 5.1% 3.5% 3.2% 2.9% 3.2% 4.8% 5.6% 4.8% 15.3% 4.9% 11.4% 10.4% 4.1% 0.3% -0.5% 692.0 -0.9% 132.9 565.0 73.3 70.3 25.8 25.0 26.0 -6.0 19.9 132.7 15.7 7.4 7.5 58.2 -67.6 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 FY06 FY07 1Q08 2Q08 (1) (2) (1) (2) Source: JBS FY of Swift used to be from June to May and INALCA period is from January to December. (1) 13 weeks ended 03/30/2008. (2) 13 weeks ended 06/30/2008.
  12. 12. HOW JBS IMPROVED SWIFT’S MARGINS EBITDA (US$ mi) EBITDA Margin Turnaround Financial Impacts (US$ mm) Margin (%) Preliminary Amount 4.8% Estimates Realized 12/7/2007 29/06/2008 0.1% 1.0% 0.1% 0.6% Potencial Increase in Revenue -1.4% (second shift and optimization 1,100 800 of installed capacity) 152.8 95.9 Cost Reduction 169.5 135.1 SG&A (Consulting, Reduction of 5.7 3.8 14.7 Organizational Structure, Insurance) 28.8 20.7 Variable Costs (Packing, Suplies, Eletricity, Gas) 45.0 60.0 -41.1 Improvement in Carcass Yield FY06 FY07 3Q07 4Q07 1Q08 2Q08 (Rear De-boning, Ribs De-Boning, Pork Intestines) 95.7 54.4 Net Sales (US$ million) (USGAAP) Fixed Cost* per Head Beef USA (US$) Cost reduction of 9,350 9,505 US$48.1 per head 212,3 164,2 2,588 2,871 3,157 2,462 FY06 FY07 3Q07 4Q07 1Q08 2Q08 2Q07 2Q08 Source: JBS USA * Cost per head includes packing costs, plant costs, SG&A, depreciation e interest.
  13. 13. JBS USA BEEF EXPORT VOLUMES
  14. 14. BEEF PRICE VS. CATTLE PRICE IN USA
  15. 15. JBS CONSOLIDATED – SALES DISTRIBUTION Be e f Argentina Be e f Italy 2% 5% Be e f Australia E xports 14% 37% Be e f USA 43% P ork USA 16% Dome stic Market 63% Be e f Brazil 20%
  16. 16. JBS CONSOLIDATED – EXPORTS DISTRIBUTION T aiwan Hong Kong US A Canada 4% 3% 5% 6% China Othe rs 6% 16% S outh K orea 6% Japan Me xico 18% 10% Russia 10% E .U. 16%
  17. 17. BRAZIL PRESUMING MARGINS PER HEAD IN DOLLAR 120.0 3.5 3.0 100.0 2.5 80.0 USD per Head 2.0 USD per Kg 60.0 1.5 40.0 1.0 20.0 0.5 0.0 - 2005 2006 2007 1S08 EBITDA per Head (US$) Cattle Price (US$/Kg)
  18. 18. GLOBAL CATTLE PRICES US$/Kg 4.25 3.75 3.25 2.75 2.25 1.75 1.25 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 BRA AUS ARG USA URU
  19. 19. FINAL CONSIDERATIONS
  20. 20. DISCLAIMER

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