JBS S.A.

2nd Quarter 2009 Results

August 13th, 2009

“In God we Trust”

JBS S.A.

Jeremiah O’CallaghanInvestor Relations Director

Joesley Mendonça BatistaCEO

1

Presenters

Our Values

The Foundation Of Our Culture

Planning

Determination

Discipline

Availability

Openness

Simplicity

2

Agenda

Market OverviewMarket Overview

2Q09 Highlights2Q09 Highlights

Questions and AnswersQuestions and Answers

3

Our StrategyOur Strategy

Final ConsiderationsFinal Considerations

Consolidated ResultsConsolidated Results

OUR STRATEGY

- 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.

- 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.

- 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.

- 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.

- 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.

- 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 AmericaSouth America

North AmericaNorth America

AustraliaAustralia

European UnionEuropean Union

AsiaAsia

RussiaRussia

AfricaAfrica

Middle EastMiddle East

South AmericaSouth America

North AmericaNorth America

AustraliaAustralia

European UnionEuropean Union

Debt forWorkingCapital

Debt forWorkingCapital

Equity toFinanceGrowth

Equity toFinanceGrowth

Cooked ProductsCooked Products

Case ReadyProducts

Case ReadyProducts

Global BrandsGlobal Brands

MarketingInvestmentsMarketingInvestments

Minced ProductsMinced Products

Fresh ProductsFresh Products

Cured ProductsCured Products

Ready to EatProducts

Ready to EatProducts

- 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.

- 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.4

OUR STRATEGY

FoundationFoundation

Financial

Structure

Financial

StructureExperienced

Management

Experienced

Management

Cost Reduction,Productivity,

Process Optimization

Cost Reduction,Productivity,

Process Optimization

Risk

Management

Risk

Management

ConsolidatedConsolidatedConsolidatedConsolidated

AverageAverageAverageAverage

EBITDAEBITDAEBITDAEBITDA

MarginMarginMarginMargin

4%4%4%4%

8%8%8%8%

12%12%12%12%

50%50%50%50%

5

6

Global Market

Largest beef importers

Others

38%

South Korea

4% EU-27

8%

Japan

10%Mexico

5%

United States

19%

Russia

16%

Source: USDA 2009

Largest beef consumers

Others

31%

Mexico

4%

China

10%

Brazil

13%

Argentina

5%

United States

22%

EU-27

15%

Largest beef exporters

Others

25%

New Zealand

7%

India

8%United States

11%

Canada

7%

Brazil

23%

Australia

19%

Largest beef producers

Others

31%

India

4%

China

10%

EU-27

14%

Argentina

5%

United States

21%

Brazil

15%

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

48

6269

8088

121

42

82

0

20

40

60

80

100

120

140

China

Russi

a

Mex

ico

EU-2

7

Braz

il US

Wor

ld

Deve

lope

d

Source: FAO

Per

capita

con

sum

ptio

n (k

g/ca

pita

)

Recommended Recommended consumption consumption 80Kg/capita80Kg/capita

7

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

World Population Growth and Beef Consumption (1960 – 2050)

8

0

2000

4000

6000

8000

10000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010* 2015* 2020* 2025* 2030* 2035* 2040* 2045* 2050*

Po

pu

lati

on

(m

illi

on

)

0

20

40

60

80

100

120

140

Co

nsu

mp

tio

n (

mil

lio

n t

on

s)

Population - Developed countries Population - Developing countries Beef Consumption**

CAGR 2,0%

Population growth, a beef Population growth, a beef consumption driver.consumption driver.

Source: USDA

Beef MarketUSA 1991 – 2009 (thousand tons – CWE)

9

7000

8000

9000

10000

11000

12000

13000

14000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Pro

du

cti

on

, C

on

su

mp

tio

n

0

500

1000

1500

2000

2500

3000

3500

Sto

cks, Im

po

rt, E

xp

ort

Ending Stocks Production Consumption Imports Exports

Exports Recovering after Exports Recovering after BSE in 2003.BSE in 2003.

10

USA Beef Exports

Vietnam

13%

Hong Kong

2%

Países Baixos

1%Egito

1%

China

4%Japão

11%

Coréia do Sul

11%

México

33%

Outros

7%

Canadá

17%

USA beef exports (1000 tons)USA beef exports (1000 tons)USA exports destination in TonsUSA exports destination in Tons

Source: USDA Source: USDA – 2Q09

309

652

520

317209

1,145

1,022

0

200

400

600

800

1000

1200

1400

2003 2004 2005 2006 2007 2008 2009Jan - May

Source: EU Commission / DG AGRI*Estimates

Beef MarketEuropean Union 1997 – 2013 (thousand tons - CWE)

11

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

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

Pro

du

cti

on

, C

on

su

mp

tio

n

0

200

400

600

800

1000

1200

1400

1600

Sto

cks, Im

po

rt, E

xp

ort

Ending Stocks Production Consumption Import Export

EU - 25EU - 15

Increased dependence Increased dependence on imports.on imports.

0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Production Import Export ConsumptionSource: USDA

44.4% of Russian 44.4% of Russian consumption comes from consumption comes from

imports.imports.

Beef MarketRussia 2000 – 2009 (thousand tons - CWE)

12

Beef MarketBrazil 1991 – 2009 (thousand tons - CWE)

2000

3000

4000

5000

6000

7000

8000

9000

10000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Pro

duct

ion,

Consu

mp

tion (

00

0 M

T)

0

500

1000

1500

2000

2500

3000

3500

4000

Exp

ort

s, I

mp

ort

s, S

tock

s (0

00

MT)

Ending Stocks Production Consumption Exports Imports

Source: USDA13

Beef Brazilian Exports

Beef Brazilian ExportsBeef Brazilian Exports1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Exports JBS USD Exports Brazil USD

Source: Secex

25%25%

24%21%

14

21%

1.11.00.8

0.60.8

1.5

2.5

3.0

3.9

4.3

5.1

USD

Bill

ion

Highlights

4

15

• 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.

JBS Consolidated Results

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

16

Source: JBS

EBITDA Margin (%)

295.0

470.5

265.9

211.5

384.0

4.1%

6.1%

2.3%2.8%

4.1%

2Q08 3Q08 4Q08 1Q09 2Q09

7,129.57,771.5

9,633.29,267.9 9,255.0

2Q08 3Q08 4Q08 1Q09 2Q09

-0.1%

81.5%

9.0%

59.5%

24.0%

-43.5%

-3.8%

-20.4%

Performance by Business Units

17

Net Sales(US$ million)

Net Sales(US$ million)

EBITDA (US$ mi) EBITDA margin

EBITDA (US$ mi) EBITDA margin

JBS USA (Beef)Including Australia

Net Sales

(US$ million)

Net Sales

(US$ million)

EBITDA (US$ mi) EBITDA margin

EBITDA (US$ mi) EBITDA margin

JBS USA (Pork)

Net Sales(€ million)

Net Sales(€ million)

EBITDA (€ mi)

EBITDA margin

EBITDA (€ mi)

EBITDA margin

INALCA JBS

Net Sales(R$ million)

Net Sales(R$ million)

EBITDA (R$ mi) EBITDA margin

EBITDA (R$ mi) EBITDA margin

JBS MERCOSUL

Source JBS

EBITDA Margin (%)

2.6

2.82.8

2.8

2.9

2Q08 3Q08 4Q08 1Q09 2Q09

104.6

59.7132.9

155.6

60.4

5.1% 5.6%

2.2% 2.2%3.6%

2Q08 3Q08 4Q08 1Q09 2T09

600682

620 526 554

2Q08 3Q08 4Q08 1Q09 2T09

24.7

7.5

19.9

52.1

25.6

4.5%

1.4%

4.3%

7.6%

3.2%

2Q08 3Q08 4Q08 1Q09 2T09

162143140

144 144

2Q08 3Q08 4Q08 1Q09 2T09

6.6

5.66.6

7.68.3

4.6%3.9%5.1%5.3%

4.7%

2Q08 3Q08 4Q08 1Q09 2T09

1.4

1.8

1.6

1.4

1.7

2Q08 3Q08 4Q08 1Q09 2T09

82.6

53.5199,1

102.258,2

5.6%

4.1%4.9%4.3%

3.7%

2Q08 3Q08 4Q08 1Q09 2T09

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.

2.82.3

2.0

2.5 2.6

2Q08 3Q08 4Q08 1Q09 2Q09

Net Debt / EBITDA Pro Forma per Quarter

*

Net Debt = R$ 3,928MM

EBITDA pro forma = R$ 1,482 MM= 2.6

Source: JBS

Net Debt/ EBITDA EBITDA pro-forma

* LTM including Smithfield Beef pro-forma.

Debt Profile

50% 47%39%

50% 53%61%

0%

20%

40%

60%

80%

100%

2Q08 1Q09 2Q09

Short term Long term

18

Availabilities

• 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 Company’s total liquidity including the availabilities under its credit facilities:

19

R $ MillionR $ MillionR $ MillionR $ Million 06/30/0906/30/0906/30/0906/30/09 03/31/0903/31/0903/31/0903/31/09 Var.%Var.%Var.%Var.%

Net indebtednes sNet indebtednes sNet indebtednes sNet indebtednes s 3,927.73,927.73,927.73,927.7 4,173.84,173.84,173.84,173.8 -5.9%-5.9%-5.9%-5.9%

Cash and cash equivalents 2,298.7 1,798.0 27.8%

Current 2,411.9 2,780.0 -13.2%

Long term 3,814.5 3,191.8 19.5%Gros s indebtednes sGros s indebtednes sGros s indebtednes sGros s indebtednes s 6,226.46,226.46,226.46,226.4 5,971.85,971.85,971.85,971.8 4.3%4.3%4.3%4.3%

R$ R$ R$ R$ MillionMillionMillionMillion 06/30/0906/30/0906/30/0906/30/09

Additional availability 1,092.9

Cash and cash equivalents 2,298.7

Total Total Total Total LiquidityLiquidityLiquidityLiquidity 3,391.63,391.63,391.63,391.6

Operacional Cash Flow

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

20

CASH FLOWCASH FLOWCASH FLOWCASH FLOW 2Q092Q092Q092Q09

EBIT 296.6

taxes (34% ) -100.8NOP L ATNOP L ATNOP L ATNOP L AT 195.7195.7195.7195.7

Depreciation 87.4Gros s Cas h F lowGros s Cas h F lowGros s Cas h F lowGros s Cas h F low 283.2283.2283.2283.2

Working Capital Variation 316.5

CAP E X -288.0Inv es t imentsInv es t imentsInv es t imentsInv es t iments 28.528.528.528.5OPER AT ING CASH FLOWOPER AT ING CASH FLOWOPER AT ING CASH FLOWOPER AT ING CASH FLOW 311.7311.7311.7311.7

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 Company’s management in managing its working capital.

21

Production & Stock = 32 days CLIENT = 42 days

SUPPLYER = 21 days

ProductDelivery

Supplyerpayment

Client’s payment to JBS

Client’s orderto JBS

WORKING CAPITAL &INTERESTS

53 days

1º Quarter 2009

Production & Stock 21 dias

CLIENT = 37 days

SUPPLYER = 21 days

ProductDelivery

Supplyerpayment

Client’s paymentto JBS

WORKING CAPITAL &INTERESTS

37 days

2º Quarter 2009

Client’s orderto JBS

JBS Consolidated Gross Revenue Distribution

Revenue Distribution by Business Units 2Q09Revenue Distribution by Business Units 2Q09 Revenue Distribution by Market 2Q09Revenue Distribution by Market 2Q09

Source: JBS Source: JBS

22

Domestic Domestic Domestic Domestic MarketMarketMarketMarket

74%74%74%74%

ExportsExportsExportsExports26%26%26%26%

I talyItalyItalyItaly4%4%4%4% ArgentinaArgentinaArgentinaArgentina

2%2%2%2%

BrazilBrazilBrazilBrazil16%16%16%16%

Beef USABeef USABeef USABeef USA54%54%54%54%

Pork USAPork USAPork USAPork USA13%13%13%13%

AustraliaAustraliaAustraliaAustralia11%11%11%11%

JBS Consolidated Exports Distribution

Exports Distribution 2Q09Exports Distribution 2Q09

Source: JBS

23

JapanJapanJapanJapan18%18%18%18%

E.U.E.U.E.U.E.U.15%15%15%15%

USAUSAUSAUSA9%9%9%9%

Africa and Africa and Africa and Africa and Middle EastMiddle EastMiddle EastMiddle East

8%8%8%8%

RussiaRussiaRussiaRussia7%7%7%7%

MexicoMexicoMexicoMexico7%7%7%7%

South KoreaSouth KoreaSouth KoreaSouth Korea6%6%6%6%CanadaCanadaCanadaCanada

5%5%5%5%

Hong KongHong KongHong KongHong Kong5%5%5%5%

ChinaChinaChinaChina4%4%4%4%

TaiwanTaiwanTaiwanTaiwan2%2%2%2%

OthersOthersOthersOthers14%14%14%14%

JBS Exports 2Q09JBS Exports 2Q09JBS Exports 2Q09JBS Exports 2Q09US$ 1,169.1 MillionUS$ 1,169.1 MillionUS$ 1,169.1 MillionUS$ 1,169.1 Million

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 it’s Global distribution network and margins tend to improve as a result of it’s 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

JBS S.A.

Questions and Answers

August 13th, 2009

“In God we Trust”

JBS S.A.

DISCLAIMERDISCLAIMERDISCLAIMERDISCLAIMER

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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