3Q08 Conference Call Presentation

7/30/2019 3Q08 Conference Call Presentation

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3rd Quarter 2008 Results

JBS S.A.

November 05th, 2008

In God we Trust


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PRESENTERS

Rodrigo Gagliardi

Investor Relations Manager

Jeremiah OCallaghan

Investor Relations Director

Joesley Mendona Batista

CEO

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Our Mission

To 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.

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Our Values

The Foundation Of Our Culture

Planning

Determination

Discipline

Availability

Openness

Simplicity

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MANAGEMENT

InvestorRelations

Jerry

OCallaghan

Brazil

Humberto

Magalhes

Argentina

Nelson

Dalcanale

ItalyLuigi

Scordamaglia /

Paolo Boni

Legal

Francisco

de Assis e Silva

FinancialDirector

Srgio

Longo

CEO

Chairman

Joesley

Batista

Mr. Humberto deCamposMagalhes holdsa degree in biologyfrom Universidade

Federal do MatoGrosso. He iscurrently the chiefoperating officer ofthe Braziliandivision. Beforejoining JBS in1999, he had over8 years ofexperience workingin the meatindustry.

Mr. Srgio Longo, hasbeen serving JBS as aFinancial Director sinceApril 2003 and he hasbeen a member of JBSboard of executive

officers since 2005.Before joining JBS hehad over 25 years ofexperience working infinancial institutions.

Mr. Francisco deAssis e Silva, GeneralCounsel, holds a lawdegree and a masterdegree inenvironmental law fromPontifcia UniversidadeCatlica at ParanState, a master degreein corporate law and amasters degree in

public law fromUniversidadeMackenzie, and an MBEin labor economics fromUniversidade de SoPaulo. He has been amember of JBS board

of executive officers

since January 2, 2007 .He has been workingfor the JBS Group sinceDecember 2001.

Mr. NelsonDalcanale

has been working atJBS since 2001 and iscurrently the CEO ofthe division inArgentina. Beforejoining JBS, he had21 years ofexperience in themeat industry.

Mr. JerryOCallaghan holds adegree in Engineeringfrom UCC (UniversityCollege Cork) inIreland. He immigrated

to Brazil in 1979. Mr.OCallaghan enteredthe beef sector in 1983and joined JBS in 1996to developInternational Trade forthe group. He iscurrently our InvestorRelations Officer.

Mr. Scordamaglia,started his career asProfessor in theVeterinary Universityof Perugia and as anadvisor in the legal

and QA departmentsof Inalca. He wasappointed CEO ofInalca in 2007.

Mr. Paolo Boniholds a degree inaccounting. Beforejoining JBS he hadover 25 years ofexperience in thebeef industry sector.He has been a BoardMember of Inalcasince 1996.

Management

& Controlling

Director

Eliseo

Fernandez

Mr. EliseoFernandez holds adegree in businessadministration andaccounting fromUniversidade Catlica

de Pernambuco and amasters degree inbusinessadministration f romFGV. He joined JBS inAugust 2005 and iscurrently themanagement andcontrolling director.Before joining JBS MrFernandez worked foreight years in theauditing and advisoryindustry and 10 years

in the retail industry.

Wesley

Mendona

Batista

Jos

Batista

Sobrinho

Jos

Batista Jr.

Marcus

Vinicius

Pratini de

Moraes(Independent)

Board of Directors

Demsthenes

Marques(Independent

PROT FIP)

BNDES(Independent)

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CFO

AndrNogueira

Australia

Iain Mars

Pork

MartinDooley

JBS

Packerland

BeefRichard Vesta

JBS Five

Rivers

MikeThoren

Beef USA

David Colwell

CEOUSA/AUS

WesleyBatista

MANAGEMENT

Trading

BrentEastwood

Mr. AndrNogueira holds adegree in Economicsfrom UniversidadeFederal Fluminense,a master degree inCapital Markets fromFGV Fundaco

Getlio Vargas, amaster degree in inEconomics fromUniversidade deBrasilia in 2003.

He worked for morethan 20 years inBanco do Brasil andjoined JBS in 2007,following the boughtSwift & Coacquisition.

Mr. BrentEastwood hadworked for Swift &Company for over18 years.

He moved to theUSA in 2007 to be

Vice President /Director of JBSTrading USA, theSwift DistributionCenters USA,Australia Trading,AustraliaDistributionCenters and theGlobal TradingBusiness in Brazil.

Mr. Thoren hasserved as Presidentand CEO of FiveRivers since theCompanysinception.

Mike received hisMaster of Science

degree inAgriculturalEconomics and hisdegree inAgribusiness fromWashington StateUniversity.

Mr. David Colwellholds a degree fromUniversity of SouthFlorida and has beenworking for JBS Swift& Company for 11years. David hasbeen the President of

JBS Beef since 2007.

Mr. Richard Vestajoined SmithfieldFoods following theacquisition ofPackerland in 2001and now serves asPresident and CEOof JBS Packerland.

Mr. MartinDooley

Holds a degree ofScience inBiology/MedicalTechnology Eastern Illinois

University - 1982Marty has workedat Swift &Company all hislife, having startedas a managementtrainee in 1983.

He was appointedin 2007 to be thePresident of JBSPork division.

Mr. Iain Marswas born inEngland. Iain hasbeen involved inthe beef industryfor all his life. MrMars was

appointedPresident and CEOof JBS Australia in2007, after theacquisition ofSwift & Company.He joined JBS in2005.

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OUR STRATEGY

Pursue Growth OpportunitiesThrough Acquisitions

Examples:

- Brazilian Slaughterhouses- Swift Armour- Swift & Company- Inalca- Tasman- National Beef *- Smithfield Beef *

Experiencedmanagement team withover 50 years ofexperience in the beefprocessing industry.

* The closing of these transactions are subject to certain closingconditions, including expiration or termination of applicablewaiting periods under U.S. antitrust law

Createsatisfactory andconsistent returnto shareholders

Mitigate Potential Risksas Sanitary Barriers &

Seasonality

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0.3 0.4 0.4 0.5 0.5 0.4 0.71.2 1.5 1.9

12.7

24.8

1993 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008**

JBS HISTORY HAS BEEN BUILT THROUGH MORE THAN 30

ACQUISITIONS IN 15 YEARS

Source: JBS* Pro forma JBS S.A. LTM Dec07 (includes JBS USA)** Pro Forma JBS S.A. LTM Sep08 (includes JBS USA, Tasman and 50% of Inalca); National LTM May08; Smithfield Beef LTM Sep07;(1) The closing of this transaction is subject to certain closing conditions, including expiration or termination of applicable waiting periods under U.S. antitrust law

Net Sales (in US$ billion)

Companies and assets acquired

Cceres

(Frigosol)

Iturama

(Frigosol)Araputanga

(Frigoara)

Barretos (Anglo)

Pres. Epitcio (Bordon)

Campo Grande (Bordon)

Pedra Preta

(Frigo Marca)

Rosrio

(Swift ARG)

San Jose

(Swift ARG)

Inalca

Swift Foods Co.

Maring (Amambay)

Berazategui

(Rio Platense)

Colonia Caroya

SB Holdings

JV Beef Jerky

Venado

Tuerto

Pontevedra

(CEPA)

Rio Branco

Cacoal 1

Cacoal 2

Porto VelhoVilhena (Frigovira)

Andradina

(Sadia)

Barra do

Garas

(Sadia)

Goinia

(Anglo)

Anpolis

(Bordon)

R$/US$ end of the year cotation R$/US$: 1.91

7

National Beef

Tasman

Smithfield Beef

Five Rivers

(1)


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AGENDA

IMPACT OF THE CRISIS

CONSOLIDATED RESULTS

OUTLOOK

QUESTIONS AND ANSWERS

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SHORT TERM DEBT PROFILE 3rd QUARTER 2008

The Administration of the Company is secure that even if the present financial crisis has not abated until the next

quarter the Company will not have difficulties in refinancing its short term debt and believes that in the final

analysis there will be a possible increase in the cost of the debt. The Company did a sensitivity analysis

considering firstly a probable scenario and secondly a pessimistic one in relation to the renewal of its short

term financing facilities.

Obs: The Finame, Finem and Finimp credit lines are automatically liquidated, meaning they are paid on expiry and are not renewable

Trade finance, Working Capital and other credit lines are interchangeable, meaning they can be refinanced but not necessarily in the same category under which they were initially contracted.

*Including Finimp

**Percentage to be paid in the period

***Simulation of the availabilities and applications after the amortizations programmed for the respective quarter without taking into consideration cash to be generated in future quarters.

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JBS S.A. Consolidated (R$ million)

4Q08 1Q09 2Q09 3Q09 Tota l %** 4Q08 1Q09 2Q09 3Q09 %** 4Q08 1Q09 2Q09 3Q09

Financing for purchase of fix ed a ssets

FINAME / FINEM - Enterprise financing 48 12 12 12 84 100% 48 12 12 12 100% 48 12 12 12

Notes Payable 2 - - - 2 100% 2 0 0 0 100% 2 0 0 0

Sub Total 1 50 12 12 12 86 100% 50 12 12 12 100% 50 12 12 12

Loans for w orking capital purposes

ACC - Exchange advance contracts 116 174 216 122 628 0% - - - - 20% 23 35 43 24EXIM - BNDES export credit facility 103 69 0 0 172 0% - - - - 20% 21 14 0 0

Fixed Rate No tes with final maturity in February 20 11 7 - - - 7 100% 7 - - - 100% 7 0 0 0

W orking Capital - American Dollars * 7 22 24 17 70 75% 5 16 18 13 75% 5 16 18 13

W orking Capital - Australian Dollars - - 97 - 97 0% - - - - 0% 0 0 0 0

W orking Capital - Euros 218 - - - 218 0% - - - - 0% 0 0 0 0

W orking Capital - Reais 101 - - - 101 0% - - - - 30% 30 0 0 0

Export prepayment 5 130 13 13 161 0% - - - - 20% 1 26 3 3

Fixed Rate Notes with final maturity February 2016 (144-A) - 10 - - 10 100% - 10 - - 100% 0 10 0 0

NCE / COMPROR 63 245 - 92 400 0% - - - - 20% 13 49 0 18

Sub Total 2 622 6 49 3 50 2 44 1.864 4% 12 26 18 13 20% 100 149 64 58

Tota l 672 661 362 255 1.950 8% 62 38 30 24 23% 150 162 76 70

Amortization of Short Term Debt

Cash , cash equ iva lents and Shor t- term investments 3rd Quarter 2008 * * * 2 .256 2.194 2.156 2.126 2.101 2.106 1.944 1.868 1.799

EBITDA 3rd Quarter 2008 471

Pessimistic ScenarioProbable Scenario

457155

AmortizationAmortization

Short Term Debt

Short Term Debt


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LIQUIDITY EVALUATION

Source:* Companies last public information

** Companies Last Twelve Months

Balance * JBS S.A.Brazilian Peers

(average)

USA Peers

(average)

ASSETS R$ (million) R$ (million) US$ (million)

Cash, cash equivalents and Short-term investments ## 2,256 1,223 57

Trade accounts receivable, net ## 2,169 623 1,017

Inventories ## 2,381 988 2,776

Prepaid expenses and other ## 326 100 215

Total Permanent assets ## 4,995 2,312 3,493

LIABILITIES R$ (million) R$ (million) US$ (million)

Loans and financings Short Term ## 1,950 1,234 297

Payroll, social charges ## 299 192 0

Trade accounts payable ## 1,410 527 1,369Other current liabilities ## 186 134 384

Loans and financings Long Term ## 2,802 2,072 3,158

Other non-current liabilities ## 114 121 531

Net Sale Revenue ** ## 29,979 5,590 20,187

Ebitda ** ## 1,079 596 653

Ebitda Margin (%) ## 3.60% 10.66% 3.24%

Working Capital ## 2,866 718 1,726

Net Debt ## 2,496 2,083 3,398

( Deficit ) or Surplus ## 370 (1,365) (1,672)

Net Debt / Ebitda** # 2.3x 3.5x 5.2x

Net Debt / Net Sale Revenue (per mon th)** # 1.0 month 4.5 months 2.0 months

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The best quarterly consolidated results in the history of the Company with EBITDA of R$470.5 millions,and net revenue of R$7,771.5 millions and profit of R$694.0 millions.

JBS USA Beef also performed at an historic level and confirmed the awaited increase in the EBITDA

margin from 5.1% in the 2Q08 to 5.6% in the 3Q08.

There was a significant increase in the EBITDA margin in the pork business in the United States from

3.2% in the 2Q08 to 7.6% in the 3Q08.

In Brazil the net revenues grew 27.6% and underwent a considerable recuperation of the EBITDA

margin of 5.5% in the 2Q08 to 6.2% in the 3Q08.

An important increase in the export volumes of Argentina, coupled with an increase in local market

sales, resulted in better margins in this respective market. The EBITDA was $19.6 million Argentine

pesos in the 3Q08 compared with -$11.7 million Argentine pesos in 2Q08.

HIGHLIGHTS

4

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JBS CONSOLIDATED RESULTS

NET REVENUE, EBITDA AND EBITDA MARGIN

591.1

94.8176.3

290.8

470.5

6.1%

3.0%4.1%

1.4%

4.2%

12M07 4Q07 1Q08 2Q08 3Q08

14,141.6

6,650.7

5,859.1

7,129.5

7,771.5

12M07 4Q07 1Q08 2Q08 3Q08

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

EBITDA Margin(%)

-11.9%

86.0%

Source: JBSWithout considering National Beef and Smithfield Beef acquisitions.

21.7%

64.5%

9.0%

61.8%

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PERFORMANCE BY BUSINESS UNITS

2,630

1,976

7,375

2,756

FY 07 1Q 08 2Q 08 3Q 08

155.6

25.8

-0.9

132.9

5.6%5.1%

-0.1%0.3%

FY07 1Q08 2Q08 3Q08

Source: JBSFY 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 06/29/2008. (3) 13 weeks ended 09/28/2008.

620536

2,175

682

FY 07 1 Q08 2Q 08 3Q 08

52.1

70.3

15.7 19.9

7.6%

3.2%2.9%3.2%

FY07 1Q08 2Q08 3Q08

155132

521

143

FY 07 1 Q08 2Q 08 3Q 08

7.6

26.0

7.4 7.5

5.3%4.8%

5.6%4.9%

FY07 1Q08 2Q08 3Q08

1,4251,271

4,892

1,811

FY 07 1 Q08 2Q 08 3Q 08(1) (2) (3)

102.2

692.0

132.758.2

5.6%

4.1%

10.4%

15.3%

FY07 1Q08 2Q08 3Q08

(1) (2) (3)

(1) (2) (3) (1) (2) (3)

Net Sales

(US$ million)

JBS USA (Beef)Including Australia

Net Sales

(US$ million)

JBS USA (Pork)

Net Sales

( million)

INALCA JBS MERCOSUL

Net Sales

(R$ million)

EBITDA (US$ mi)margin EBITDA

Margin (%)

EBITDA (US$ mi)margin EBITDA

Margin (%)

EBITDA ( mi)margin EBITDA

Margin (%)

EBITDA (R$ mi)margin EBITDA

Margin (%)

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The geographic diversification of its operations allows it to source meat efficiently, serve itscustomers cost-effectively, capitalize on increasing international trade opportunities and helps

to mitigate the potential impacts of sanitary barriers.

JBS: GLOBAL PRODUCTION & DISTRIBUTION PLATFORM

JBS Mercosul JBS USA / Australia Inalca JBS

Revenue Ebit da

Revenue Ebit da

Revenue Ebit da

76%

19%

5% US$42

Source: JBS

* JBS S.A. LTM Sep08, Pro forma JBS USA LTM Sep08 (includes Tasman) and Pro forma 50% of Inalca LTM Sep08

Exchange rates:

R$ / US$ = 1.91 09/30/2008

US$ / $ = 1.41 09/30/2008

US$265

US$257

US$3,043

US$778

US$11,839

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95176

291

X471

2.8

2.3

2.9

3.7

4Q07 1Q08 2Q08 3Q08 4Q08e

Net Debt/ EBITDA

Source: JBSWithout considering National Beef and Smithfield Beef acquisitions.

Net Debt / EBITDA Pro Forma per TRIMESTER (R$

million)JBSs Net debt in relation to its Ebitda

(last twelve months pro forma) is

affected by weak results in the 4th

quarter 2007 and 1st quarter 2008.

Good results expected for the 4thquarter 2008 and 1st quarter 2009 will

reduce the relation between Net Debt

over Ebtida.

Exchange rates:

R$ / US$ = 1.91 09/30/2008

US$ / $ = 1.41 09/30/2008

JBS NET DEBT/EBITDA

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EVOLUTION OF THE EBITDA MARGINS OF JBS USA (BEEF)

COMPARED WITH ITS LOCAL PEERS

16

-0.4%

1.3% 1.3%

3.6%

0.9% 0.9%

3.2%

-0.9%

2.3%

-5.3%

-0.7%-0.4%

-1.7%

4.2%

5.3%

-1.3%-1.2%

0.9%0.7%

FY03* FY04* FY05* FY06* FY07* 3Q07** 4Q07** 1Q08** 2Q08** 3Q08**

Peers Average Beef USA

JBS Beef USA

Source: JBS and estimates of JBS based upon public data from peersEBITDA margins of the Companies taking into consideration beef only in the US*Fiscal years for the Companies differ one from the other:FY Tyson: October to SeptemberFY Smithfield: May to April

FY National Beef: September to AugustFY JBS USA: June to May (altered after the acquisition)**The relevant quarterly period and adjustments made to the calendar year

EBITDA (%)

JBS S.A. ManagementPrevious Management


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CONSOLIDATED PRO-FORMA SEPTEMBER 2008

Combined Companies Pro-forma (US$ million)

Exchange rates:

R$ / US$ = 1.91 09/30/2008

Source: Company Estimates

JBS annual report, quartely reports - Pro-forma LTM Sep08 (including JBS USA, Tasman and 50% of Inalca)

Smithfield Beef Managerial numbers LTM Sep08 and 100% of Five Rivers LTM Sep08

*ABLAsset Based Loan contracted by JBS USA

17

Net Revenue (US$ mm) 15.660 3.033 18.694

EBITDA (US$ mm) 564 139 703

EBITDA Margin 3,6% 4,6% 3,8%

Cash (US$ mm) 1.178 10 1.188

Short Term Debt (US$ mm) 1.019 0 1.019

Long Term Debt (US$ mm) 1.464 400 1.864

Net Debt (US$ mm) 1.304 0 1.694

Net Debt / Ebitda 2,3x 0,0x 2,4x

Slaughter Capacity (thousand head/day) 57,6 7,6 65,2

Units 98 16 114

Employees 48.991 6.370 55.361

INTEGRATED

and Five Rivers

*


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JBS USA BEEF EXPORT VOLUMES

12

Source: JBS

18

10

15

20

25

30

35

40

45

50

55

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Millionpounds

2007 2008

JBS Beef exports up64%; industry up 33%

JBS USA EXPORTS


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JBS CONSOLIDATED GROSS REVENUE

DISTRIBUTION

Revenue Distribution by Business Units 3Q08 Revenue Distribution by Market 3Q08

Source: JBS Source: JBS

19

DomesticMarket

64%

Exports

36%

Beef Italy5% Beef Argentina

3%

Beef Brazil22%

Beef USA43%

Pork USA14%

Beef Australia13%


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JBS CONSOLIDATED EXPORTS DISTRIBUTION

Exports Distribution 3Q08

Source: JBS

20

Russia

18%

Japan15%

Mexico10%E.U.

10%

Canada5%

South Korea4%

China4%

USA3%

HongKong

3%

Taiwan3%

Others25%

Exports JBS 3Q08US$ 1.7 billion


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CUTOUT PRICE VS. CATTLE PRICE IN USA

12Source: Bloomberg 21

C utout Price vs. C attle Price in The US

115

125

135

145

155

165

175

J ul-07 Aug-07 S ep-07 Oct-07 Nov-07 Dec-07 J an-08 Feb-08 Mar-08 Apr-08 May-08 J un-08 J ul-08 Aug-08 S ep-08 Oct-08

US$/100pounds

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

70

80

90

100

Margin(US$/Head)

Margin/Head C attle P rice B eef P rice

4.25.3

-5.3%

-1.3%-0.7%

EB ITDA Margin of JBS US A Beef

(excluding Australia)


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GLOBAL CATTLE PRICES US$/Kg

Source: Bloomberg, IPCVA (ARG) and INAC (URU). Converging Margins

Converging Prices

22

1.25

1.75

2.25

2.75

3.25

3.75

Ja n-07 Feb-07 Mar-07 Apr-07 May-07 J un-07 J ul-07 Aug-07 S ep-07 O ct-07 Nov-07 Dec-07 J an-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 S ep-08 Oct-08

BR A AUS AR G US A UR U


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ENTERPRISE VALUE AND EBITDA MULTIPLE

Source: JBS

96.3

264.8

5.5x

15.1x

Jul-07 Sep-08

SWIFT USA ACQUISITION

EV / EBITDA

175%

US$1,458.8 mm

SMITHFIELD BEEF ACQUISITION

70.0

139.3

4.1x

8.1x

Oct-07 Sep-08

EV / EBITDA

99%

US$565.0 mm

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FINAL CONSIDERATIONS

The consolidated results in the history of the Company.

Planning and discipline contributed to risk reduction.

Consistent improvement in the consolidated results of the Company.

Commitment from the Management to reduce the leverage of the

Company.

Appropriate liquidity level.

We will continue to grow. We see the present crisis as an immense

opportunity.

Regardless of the negative aspects of the present macroeconomicscenario, the Management of this Company forecasts substantiallyimproved consolidated operational results for 2009.

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Questions & Answers

JBS S.A.

November 05th, 2008

In God we Trust


27/28

PUBLIC MEETING WITH ANALYSTS AND INVESTORS

26

ScheduleNovember 18th, 2008 (Tuesday)

8h00 Welcome Coffee

9h00 Presentation

LocationRadisson Hotel

Jacarand Room

Av. Cidade Jardim, 265

Jardim Europa So Paulo SP

Brazil

RSVP

To confirm your participation contact us at:

55 11 3144 4447 or,

[email protected]


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DISCLAIMER

The forward-looking statements presented herein are subject to risks and uncertainties. Thesestatements 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 orsuggested 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.

27

Documents

3Q08 Conference Call Presentation