3rd Quarter 2009 Results

JBS S.A. JBS S.A.

November

16th,

2009

In God we trust, nature we respect

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

3Q09 Highlights

Final Considerations

Questions and Answers

Our Strategy
2005/2006 Adequate Financial Structure 2007/2008 Global Production Platform 2009/2010 Global Sales & Distribution Platform 2011/2012 Value Added Products & Branding

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 North America Australia

European Union
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.
-

South America North America

Fresh Products
Cooked Products Minced Products

Australia
European Union

Cured Products

Asia Russia Africa Middle East

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.

Ready to Eat Products Case Ready Products Global Brands

Marketing 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.

Our Strategy

50%

Branding Value Added Products Sales & Distribution Platform Production Platform
Cost Reduction, Productivity, Process Optimization

12%

8%

4%

Consolidated

Financial Structure

Experienced Management

Risk Management

Average EBITDA Margin

Foundation

Agenda

Market Overview

Global Market

Largest beef producers

Largest beef consumers

Others 31%

United States 21%

Others 31%

United States 22%

India 4% Argentina 5% EU-27 14%

Brazil 15% Mexico 4% China 10% Argentina 5% China 10% Brazil 13%

EU-27 15%

Largest beef exporters

Others 25%

Largest beef importers

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

World Population Growth and Beef Consumption (1960 2050)

10000

Population growth, a beef consumption driver.

140

120 8000

6000

80

60 4000 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)

100

Population (million)

Per capita food consumption (Kg / Year)

180 160 140 120 100 80 60 40 20 0

1969/ 71 1979/ 81 1989/ 91 1999/ 01 2030 2050

Cereals

Roots and Tubers

Beans, Peas and Lentils

Sugar

O ils Crops and its products

Meat

Milk and its products

Source: FAO

US Beef and Veal Exports (Million Pounds)

Source: USDA ERS

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US Pork Exports (Million Pounds)

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1999 Japan 2000 China 2001 Hong Kong 2002 Mexico 2003 Russia 2004 Canada 2005 South Korea 2006 2007 Australia 1,278 1,287 1,560 1,612 1,717 2,181 2,995 2,667 3,142

4,667

3,279

2,650
2,650

2008 Others

2009 Until August

Source: USDA ERS

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US Poultry Exports (Million Pounds)

8,000 7,109 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1999 Russia 2000 2001 2002 Iraq 2003 Mexico 2004 Canada 2005 Cuba 2006 Other Chicken 2007 Others 2008 2009 4,980 5,138 5,738 4,942 5,013 4,997
4,683

6,070 5,333 5,367 4,621

4,621

China (Mainland)

Until August

Source: USDA ERS

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Brazilian beef exports (USD billion)

Source Secex

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Agenda

3Q09 Highlights

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Highlights

Net profit of R$151.5 million in the quarter. 7.8% net revenue growth, from R$7,771.5 million in 3Q08 to R$8,379.9 million in 3Q09. Operating cash flow of R$317.8 million in the quarter. Despite relevant productivity gains in international operations, the impact of the global crisis in important consumer markets resulted in margin contractions. Efficient working capital management. Announcement of the association with Bertin S.A. and acquisition of Pilgrims Pride Corp. Commitment to respect society and the environment supported by Non-governmental organizations.
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JBS Consolidated Net Revenue Distribution

Revenue Distribution by Business Units 3Q09

Revenue Distribution by Market 3Q09

Australia 14%

Italy 5%

Argentina 2% Brazil 17%

Exports 24%

Pork USA 12%

Beef USA 50%

Domestic Market 76%

Source: JBS

Source: JBS

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JBS Consolidated Exports Distribution

Exports Distribution 3Q09

JBS Exports 3Q09 US$ 1,127.4 Million

Indonesia 3% China 4% South Korea 4% Hong Kong 5% Africa and Middle East 6%

Others 18%

Japan 19% E.U. 12%

Mexico 7%

USA 8%

Russia 9%

Canada 6%

Source: JBS

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JBS Consolidated Results

Net Revenue (R$ million)

EBITDA and EBITDA Margin (R$ million)

24.0%

-3.8%

-0.1%

-9.5% -44.0% -20.4% 81.6% -24.0%

Source: JBS EBITDA Margin (%)

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Currency effects in the net revenue

Net Revenue (Million) R$ US$

Exchange rate average of the period: 2Q09 2.0748 3Q09 1.8677

Excluding the exchange rate effect in

the period, net revenue increased 0.6% over 2Q09.

-9.5%

0.6%

Source: JBS Source: Banco Central

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Performance by Business Units

JBS USA (Beef)
Including Australia

JBS USA (Pork)

Net Sales (US$ million)

INALCA JBS
Net Sales
( million)

JBS MERCOSUL
Net Sales
(R$ billion)

Net Sales
(US$ billion)

2.7

2.8

2.9 2.7

2.8

143

162

144

144

146

1.8

1.6

1.4

1.7

1.7

3Q08

4Q08

1Q09

2Q09

3Q09

3Q08

4Q08

1Q09

2Q09

3Q09

3Q08

4Q08

1Q09

2Q09

3Q09

EBITDA (US$ mi) EBITDA margin

EBITDA (US$ mi) EBITDA margin

EBITDA ( mi) EBITDA margin

EBITDA (R$ mi) EBITDA margin

5.2% 2.2% 2.2%

3.6%

3.8%

5.3%

5.1% 3.9%

4.6%

6.6%

5.6%

4.3%

3.7%

4.9% 2.9%

9.7
104.6 108.4 104.1 60.4 59.7

7.6

8.3 5.6 6.6

199,1 69.4 58,2
1Q09

82.6

47.3

3Q08

4Q08

1Q09

2Q09

3Q09

3Q08

4Q08

1Q09

2Q09

3Q09

3Q08

4Q08

2Q09

3Q09

Source JBS EBITDA Margin (%)

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Debt

The net debt / EBITDA ratio increased from 2.6x in 2Q09 to 3.3x in 3Q09, reflecting the EBITDA decline when compared with 3Q08. The company projects a reduction in leverage levels by the end of the year. The gross and net debt reduced 5.6% and 2.2%, respectively, over 2Q09.
Net Debt / EBITDA Pro Forma per Quarter Gross debt Profile (R$ million)
5,971.8 6.226.4 5,877.1

3.3 * 2.3 2.5 2.0 2.6

53%

61%

59%

47%

39%
2T09 Short term Long term

41%
3T09

3Q08

4Q08

1Q09

2Q09

3Q09

1T09

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

EBITDA pro-forma

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Operational Cash Flow

For the second quarter consecutive, the Company generated positive operating cash flow

of more than R$300 million.

CAS H F L OW E B IT tax es NOP L AT Depreciation Gross Cash F low W orking Capital V ariation CAP E X OP E R AT ING CAS H F L OW

3Q09 210.3 -66.1 144.1 81.6 225.8 326.5 -234.4 317.8

2Q09 296.6 -90.4 206.2 87.4 293.6 316.5 -288.0 322.2

V ar.% -29.1% -26.8% -30.1% -6.7% -23.1% 3.2% -18.6% -1.3%

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Working Capital

JBS continues to reduce its working capital needs, which decreased from 37 days in 2Q09 to 33 days in 3Q09.
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

3 Quarter 2009
Clients order to JBS Production & Stock 21 dias Product Delivery CLIENT = 33 days Clients payment to JBS

SUPPLYER = 21 days

33 days

Supplyer payment

WORKING CAPITAL & INTERESTS

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Final Considerations

Signs of economic recovery bring the prospect of better results in coming quarters. Turnaround of Argentine operations is under way with the change in management and the implementation of internal restructuring. JBS maintains its focus on building a distribution platform to add value to its products and increase its margins. The undergoing acquisition of Pilgrims Pride and the association with Bertin adds to the growth potential of the company. Financial leverage continues to be our focus and we aim to keep it under control. We are committed to building a sustainable platform respecting our customers and the environment.
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IR Contacts: ir@jbs.com.br +55 11 3144 4055 www.jbs.com.br/ir

Questions & Answers

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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