2nd Quarter 2009 Results

August 13th, 2009

In God we Trust

JBS S.A.

Presenters

Joesley Mendona Batista

CEO

Jeremiah OCallaghan
Investor Relations Director

Our Values
The Foundation Of Our Culture
Planning Determination Discipline Availability Openness Simplicity
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Agenda

Our Strategy

Market Overview

2Q09 Highlights

Consolidated Results

Final Considerations

Questions and Answers

OUR STRATEGY

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

South America North America Australia

European Union

Fresh Products
Cooked Products

North America Australia

Asia Russia Africa Middle East

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

Minced Products Cured Products Ready to Eat Products Case Ready Products Global Brands

European Union

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

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.

OUR STRATEGY

50%

12%

8%

4%

Financial Structure

Experienced Management

Cost Reduction, Productivity, Process Optimization

Risk Management

Consolidated Average EBITDA Margin

Foundation

Global Market

Largest beef producers

Largest beef consumers

Others 31%

United States 21%

Others 31%

United States 22%

India 4% Argentina 5%

Brazil 15%
Mexico 4%

EU-27 15%

China 10%

EU-27 14%

Argentina 5% China 10%

Brazil 13%

Largest beef exporters

Largest beef importers

Others 25%

Brazil 23%

Others 38%

United States 19% Russia 16%

New Zealand 7% Canada 7% India 8%

Australia 19% United States 11% South Korea 4% Mexico 5% EU-27 8% Japan 10%

Source: USDA 2009

Meats Consumption Per capita (including beef, pork and poultry)

140

121
120

Recommended consumption 80Kg/capita

100

Per capita consumption (kg/capita)

88 80 69 62 48

82

80

60

42

40

20

0
S De ve lo pe d Ru ss ia ex ic o 7 l Br az i C hi EU -2 or ld W na U

Source: FAO

World Population Growth and Beef Consumption (1960 2050)

10000 140

Population growth, a beef consumption driver.

120

8000 100

6000

80

CAG
4000

% R 2,0

60

40 2000 20

0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050*
Population - Developed countries Population - Developing countries Beef Consumption**

Source: UN (United Nations) and USDA *UN Estimates **Beef consumption trend considering CAGR of 2.0% (from 1960 to 2008)

Consumption (million tons)

Population (million)

Beef Market
USA 1991 2009 (thousand tons CWE) Exports Recovering after BSE in 2003.

14000

3500

13000

3000

12000 Production, Consumption

2500 Stocks, Import, Export

11000

2000

10000

1500

9000

1000

8000

500

7000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: USDA Ending Stocks Production Consumption Imports Exports

USA Beef Exports

USA beef exports (1000 tons) USA beef exports (1000 tons)
1400 1200 1000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009
Jan - May

USA exports destination in Tons USA exports destination in Tons

Pases Baixos 1% Egito 1% China 4%
309

1,145 1,022

Hong Kong 2% Outros 7%

652 520 317 209

Japo 11% Vietnam 13%

Mxico 33% Canad 17%

Coria do Sul 11%

Source: USDA

Source: USDA 2Q09

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Beef Market
European Union 1997 2013 (thousand tons - CWE)

9000 EU - 15 8000 EU - 25

1600

1400

7000

1200

Production, Consumption

1000

5000 800 4000 600 3000 400

2000

1000

200

0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Import 2009* 2010* 2011* 2012* 2013* Export

Ending Stocks Source: EU Commission / DG AGRI *Estimates

Production

Consumption

Stocks, Import, Export

6000

Increased dependence on imports.

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Beef Market
Russia 2000 2009 (thousand tons - CWE)

3000

2500

2000

44.4% of Russian consumption comes from imports.

1500

1000

500

0 2000 Source: USDA 2001 2002

Production

2003

2004
Import

2005
Export

2006

2007

2008

2009

Consumption

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Beef Market
Brazil 1991 2009 (thousand tons - CWE)

10000

4000

9000

3500

8000
Production, Consumption (000 MT)

3000
Exports, Imports, Stocks (000 MT)

7000

2500

6000

2000

5000

1500

4000

1000

3000

500

2000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Ending Stocks
Source: USDA

Production

Consumption

Exports

Imports

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Beef Brazilian Exports

Beef Beef Brazilian Brazilian Exports Exports

5.1

4.3 3.9

USD Billion

3.0 2.5

1.5 0.8 0.6 21% 21% 24% 25% 0.8 1.0 1.1 25%

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Exports JBS USD

Exports Brazil USD

Source: Secex

2008

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Highlights

Net profit of R$172.7 million in the quarter. Net revenue increased 29.8% from R$7,129.5 million in 2Q08 to R$9,255.0 million in 2Q09. Consolidated EBITDA increased 32.1% in 2Q09 when compared with the same period last year, from R$290.8 to R$384.0 million. When compared with the 1Q09, EBITDA increased 81.5%. Market share gain in JBS Brazil, from 14.9% in 1Q09 to 17.6% in 2Q09. Initiated the strategy to build a sustainable, direct and efficient global distribution platform of meat and meat products both chilled and frozen. Positive operating cash flow generation of R$311.7 million in the quarter. Efficiency in managing working capital necessity. Expansion of harvesting capacity in Brazil with the inclusion of the 5 new facilities. Application for JBS USA IPO (Initial Public Offering) registration and BDR (Brazilian Depositary Receipt) program.

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JBS Consolidated Results

Net Net Revenue Revenue (R$ (R$ million) million)

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

6.1% 4.1% 2.8%

9,633.2 7,771.5 7,129.5
295.0 265.9 211.5 470.5 384.0

4.1% 2.3%

9,267.9

9,255.0

9.0%

24.0%

-3.8%

-0.1% 59.5% -43.5% -20.4% 81.5%

2Q08
Source: JBS EBITDA Margin (%)

3Q08

4Q08

1Q09

2Q09

2Q08

3Q08

4Q08

1Q09

2Q09

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Performance by Business Units

JBS USA (Beef)
Including Australia (US$ million) (US$ million)

JBS USA (Pork)

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

INALCA JBS
Net Net Sales Sales
( million) ( million)

JBS MERCOSUL
(R$ million) (R$ million)

Net Net Sales Sales

Net Net Sales Sales

1.8 2.9 2.8 2.8 620 682 600 1.4 1.6 1.4

1.7

2.8 2.6

526

554

140

143

162

144

144

2Q08

3Q08

4Q08

1 Q09

2Q09

2Q08

3Q08

4Q08

1 Q09

2T09

2Q08

3Q08

4Q08

1 Q09

2T09

2Q08

3Q08

4Q08

1 Q09

2T09

EBITDA EBITDA (US$ (US$ mi) mi) EBITDA margin EBITDA margin
5.1 % 5.6% 3.6% 2.2% 2.2%

EBITDA EBITDA (US$ (US$ mi) mi) EBITDA margin EBITDA margin
7.6% 4.3% 1 .4% 4.5% 4.7%

EBITDA EBITDA ( ( mi) mi) EBITDA margin EBITDA margin

EBITDA EBITDA (R$ (R$ mi) mi) EBITDA margin EBITDA margin
5.6%

5.3%

5.1 %

3.9%

4.6%

3.2%

4.1 %

4.3%

4.9% 3.7%

155.6 104.6 132.9 60.4 59.7

52.1 6.6 19.9 25.6 7.5 24.7

7.6

8.3 6.6 5.6

102.2 199,1 58,2 53.5 82.6

2Q08

3Q08

4Q08

1 Q09

2T09

2Q08

3Q08

4Q08

1 Q09

2T09

2Q08

3Q08

4Q08

1 Q09

2T09

2Q08

3Q08

4Q08

1 Q09

2T09

Source JBS EBITDA Margin (%)

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Debt

Considering the seasonality with the production increase in a high moment of high demand for beef, the Company maintained its leverage on the same levels of the preview quarter. The Company has improved its net debt in comparison to the 1Q09. The short term debt decreased 47% in 1Q09 to 39% in 2Q09 against the total debt.

Net Debt / EBITDA Pro Forma per Quarter

Net Debt = R$ 3,928MM EBITDA pro forma = R$ 1,482 MM = 2.6
100%

Debt Profile

2.8 2.3 2.0

2.5

2.6 *

80%

50%

53%

61%

60%

40%

20%

50%

47%

39%

2Q08

3Q08

4Q08

1Q09

2Q09

0%

2Q08

1Q09
Short term Long term

2Q09

Source: JBS Net Debt/ EBITDA * LTM including Smithfield Beef pro-forma.

EBITDA pro-forma

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Availabilities

R $ Million Net indebtednes s Cas h and cas h equivalents Current L ong term Gros s indebtednes s

06/30/09 3,927.7 2,298.7 2,411.9 3,814.5 6,226.4

03/31/09 4,173.8 1,798.0 2,780.0 3,191.8 5,971.8

V ar.% -5.9% 27.8% -13.2% 19.5% 4.3%

Besides the cash and cash equivalents noted above, the US and Australia subsidiaries of the Company has availabilities of approximately US$ 560 million under their existing credit facilities that provide additional liquidity. Therefore the Companys total liquidity including the availabilities under its credit facilities:
R$ Million Additional availability Cash and cash equivalents Total Liquidity 06/30/09 1,092.9 2,298.7 3,391.6

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Operacional Cash Flow

The Company generated positive operating cash flow of R$311.7 million in the quarter.

CAS H F L OW E B IT tax es (34% ) NOP L AT Depreciation Gros s Cas h F low W orking Capital V ariation CAP E X Inv es tim ents OP E R AT ING CAS H F L OW

2Q09 296.6 -100.8 195.7 87.4 283.2 316.5 -288.0 28.5 311.7

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Working Capital

JBS decreased its working capital necessity form 53 days in 1Q09 to 37 days in 2Q09, that corresponds to the lowest working capital necessity of the sector, considering that the average of the sector is 75 days. This reduction ensures the efficiency of the Companys management in managing its working capital.
1 Quarter 2009
Clients order to JBS Production & Stock = 32 days Product Delivery CLIENT = 42 days Clients payment to JBS

SUPPLYER = 21 days

53 days

Supplyer payment

WORKING CAPITAL & INTERESTS

2 Quarter 2009
Clients order to JBS Production & Stock 21 dias Product Delivery CLIENT = 37 days Clients payment to JBS

SUPPLYER = 21 days

37 days

Supplyer payment

WORKING CAPITAL & INTERESTS

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JBS Consolidated Gross Revenue Distribution

Revenue Revenue Distribution Distribution by by Business Business Units Units 2Q09 2Q09

Revenue Revenue Distribution Distribution by by Market Market 2Q09 2Q09

Australia 11%

Italy 4%

Argentina 2% Brazil 16%

Exports 26% Domestic Market 74%

Pork USA 13%

Beef USA 54%

Source: JBS

Source: JBS

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JBS Consolidated Exports Distribution

Exports Exports Distribution Distribution 2Q09 2Q09

JBS Exports 2Q09 US$ 1,169.1 Million

China 4% Hong Kong 5% Canada 5%

Taiwan 2%

Others 14%

Japan 18% E.U. 15%

South Korea 6%

Russia 7%

Mexico 7%

Africa and Middle East 8%

USA 9%

Source: JBS

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Final Considerations

The Company maintains its growth in Brazil reaching almost 18% market share, as commented in previous presentations The operations in the US continue to generate synergies and reduce costs maintaining margins regardless of the economic downturn The Company has already initiated the construction of its Global distribution network and margins tend to improve as a result of its implementation. The direction of JBS continues to focus on a healthy balance sheet, generating positive operational cash flow and maintaining the lowest leverage of the sector. JBS continues along the path of sustainability constantly improving controls in order to guarantee the origin of its products. JBS presented a solid financial structure and went thru the crises maintaining its liquidity. With the gradual recovery of global financial markets, global production and consumption, JBS is ready to continue strategic expansion through new acquisitions to maintain a competitive over its rivals.

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25

Questions and Answers

August 13th, 2009

In God we Trust

JBS S.A.

DISCLAIMER

The forward-looking statements presented herein are subject to risks and uncertainties. These statements 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 or suggested 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.

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