JBS S.A.

October / November, 2012

JBS S.A.

3 PAGE

JBS S.A. at a glance

Founded in the 1950’s in Midwest of Brazil

IPO in 2007

Leading protein producer in the World

Net Revenue of R$34.5 billion in 1st semester of 2012

EBITDA of R$1.7 billion in 1st semester of 2012

Net revenue organic growth of 18% in 1st semester of 2012

135,000 employees worldwide

301 production units in 5 continents

4 PAGE

JBS Ranking

Largest global beef and

lamb producer 1 st

Largest global leather

processor 1 st

Largest global chicken

producer 1 st

Largest pork producer

in the US 3 rd

Source: JBS

1 Market Leader

4 Well-recognized

brands

3 Geographic and

market segment

diversification

2 Track Record of

successful

acquisitions

5 PAGE

0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 2.0

7.2

16.5 17.2

31.1

36.9

1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Merger and Acquisition track record More than 30 acquisitions in 15 years

Barra do Garças (Sadia)

Andradina (Sadia)

Barretos (Anglo) Pres. Epitácio e Campo grande (Bordon)

Araputanga(Frigoara)

Cáceres (Frigosol) Iturama (Frigosol)

Rio Branco Cacoal 1 Cacoal 2 Porto Velho Vilhena (Frigovira)

Pedra Preta (Frigo Marca)

Venado

Tuerto

Pontevedra

(CEPA)

JV Beef Jerky

Merger with Bertin

JBS Couros

5 new units

Tatiara Meat

(Swift Austrália)

Net revenue (USD billion)

Inalca

SB Holdings

Berazategui (Rio Platense)

Colonia Caroya

Maringá (Amambay)

Swift Foods Co.

JBS went international with the acquisition of Swift Argentina.

Construction of a sustainable global meat production and sales platform.

2005

JBS became the largest beef company in the world and the biggest Brazilian company in the food industry and entered the US pork market.

2007

2008

Diversification of market segments through the acquisition of Pilgrim’s Pride and merger with Bertin.

2009

JBS Swift became the leader in lamb production in Australia.

2010

Rosário San Jose (Swift Argentina)

Pilgrim´s Pride Rockdale Beef

Source: JBS

Smithfield

Beef

Five Rivers

Tasman

1 Market Leader

4 Well-recognized

brands

3 Geographic and

market segment

diversification

2 Track Record of

successful

acquisitions

6 PAGE

1 Market Leader

4 Well-recognized

brands

3 Geographic and

market segment

diversification

2 Track Record of

successful

acquisitions

Diversified market segments

Beef

Pork

Chicken

Transportation

Biodiesel

Collagen

Leather

Lamb

7 PAGE Source: JBS

Presence in more than 100 countries, in 5 continents

Slaughterhouses and Production Units

Sales Office

Pork

Leather Beef

Distribution Center Biodiesel

Strategic Geographical Distribution

Chicken

Geographic

Presence and

Production

Capacity

81,400 heads/day

Beef

8.3 mm birds/day

Chicken

50,100 heads/day

Pork

18,265 heads/day

Lamb

86,300 hides/day

Leather

3

61

39

29

2 64

17

301

6 Lamb

1 Market Leader

4 Well-recognized

brands

3 Geographic and

market segment

diversification

2 Track Record of

successful

acquisitions

8 PAGE

EBITDA

Margin

Our Strategy

RATIONALE

Associating quality and branding to

increase client loyalty

Customized and further processed

products for the end users

Expanding a global distribution

platform to reach end clients

Developed an efficient and

diversified global production

platform

Production platform

Sales and distribution platform

Value added products

Branding

Financial

Structure

Experienced

Management

Cost reduction,

process

optimization

Risk

Management

JBS’s Value & Strategy

9 PAGE

Well-recognized Brands, symbols of quality

USA

Australia

Brazil

Argentina

1 Market Leader

4 Well-recognized

brands

3 Geographic and

market segment

diversification

2 Track Record of

successful

acquisitions

Perspectives for the animal protein market

11 PAGE

Global consumption of animal protein has been increasing

Consumption growth by region over the past ten years

North America

Central America

South America

E.U. - 27

Middle East

North Asia

East Asia

Oceania

Southeast Asia

Africa

+3.0%

+41.4%

+47.7% +7.5%

+29%

+32.2%

+23.7%

+48.7%

+23.3%

Source: Rabobank, 2010.

+70.2%

12 PAGE * Cereals, rice, oilseeds, meals, oils and feed equivalent of meat.

Source: The Economist

World’s Food* Surpluses and Deficits

North

America

South

America Australia

Eastern Europe

and former

Soviet Union

Western

Europe Asia Middle East

& Africa

Central

America

1965

1990

1970

1995

1975

2000

1980

2005

1985

2010

Net intra-regional trade, million tonnes

13 PAGE

Global Protein Consumption Growth by Species

Source: USDA FAS

(MT in mm)

Strong Global Industry Fundamentals

0

50

100

150

200

250

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

14 PAGE

Global Beef Trade

Largest Beef Exporters

Source: USDA 2011 (Estimated)

Argentina 3%

Canada 5%

Uruguay 4%

New Zealand 6%

E.U 6%

Others 12%

India 14%

Brazil 17%

Australia 17%

USA 16%

15 PAGE

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1S11 1S12

Beef and Veal exports Average Price (US$/Ton)

Australian Beef Exports (tons)

Brazilian Beef Exports (tons)

US Beef and Veal Exports (tons)

Source: USDA, MLA & Secex

Brazil, Australia and the US continue to lead global beef exports

1.6%

-2.7%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1S11 1S12

1.2%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5.500

6.000

6.500

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

2006 2007 2008 2009 2010 2011 1S11 1S12

-11.4%

17.0%

-0.2%

16 PAGE Source: USDA & Secex

Brazilian Chicken Exports (tons) USA Chicken Exports (tons)

Chicken Exports Average Price (US$/Ton)

Chicken Exports Brazil vs US

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

2.200

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

2006 2007 2008 2009 2010 2011 1S11 1S12

-6.5%

3.4%

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

2006 2007 2008 2009 2010 2011 1S11 1S12

13.3%

13.1%

17 PAGE Source: USDA & Secex

Brazilian Pork Exports (tons) USA Pork Exports (tons)

Pork Exports Average Price (US$/Ton)

Pork Exports US vs Brazil

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

300.000

600.000

900.000

1.200.000

1.500.000

1.800.000

2006 2007 2008 2009 2010 2011 1S11 1S12

-7.2%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

300.000

600.000

900.000

1.200.000

1.500.000

1.800.000

2006 2007 2008 2009 2010 2011 1S11 1S12

0.5%

21.2%

1.8%

18 PAGE

Global Surplus (deficit)

Source: Goldman Sachs

Goldman Sachs forecast for animal protein in 2020

Beef & Veal

Surplus Deficit

Pork

Chicken

2Q12 Highlights

20 PAGE

JBS posted consolidated net revenue of R$18.5 billion, 26.3% higher than 2Q11.

Consolidated EBITDA was R$1,012.8 million which represents an increase of 72.3% compared to 2Q11. EBITDA

margin was 5.5%.

JBS Mercosul was highlight during the quarter reporting net revenue of R$4,317.7 million, an increase of 19.4%

over 2Q11. EBITDA increased 47.3% over the same period and was R$630.3 million, EBITDA margin was 14.6%.

JBS USA Chicken (Pilgrim’s Pride Corporation) posted net revenue of US$2.0 billion and EBITDA of US$125.7

million in the period, reversing the negative result presented in 2Q11.

The Company ended the quarter with R$5.475 billion in cash or cash equivalent, corresponding to more than 110%

of short-term debt.

Adjusted net Income in the period was R$212.9 million excluding deferred income tax liabilities generated by

goodwill (this only generates effective income tax payment if the company sells the investment that generated

goodwill). Consolidated reported net income was R$169.5 million.

2Q12 Highlights

21 PAGE Source: JBS

JBS Consolidated Results – 2Q12

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

587.7

786.8

940.6

696.5

1,012.8

4.0 5.1 5.6

4.3 5.5

-12,0

8,0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

2Q11 3Q11 4Q11 1Q12 2Q12

14,116.3 15,567.8

16,934.5 16,011.1

18,468.3

2Q11 3Q11 4Q11 1Q12 2Q12

+15.3% +10.3% +8.8% -5.5%

+45.4% +33.9% +19.5% -26.0%

EBITDA Margin (%)

22 PAGE

Performance by Business Unit

Source: JBS

Quarterly Analysis

EBITDA Margin (%)

Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion)

EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million)

JBS Mercosul JBS USA

(Including Australia)

JBS USA JBS USA (PPC)

2.0 1.9 1.8 1.9 2.0

2Q11 3Q11 4Q11 1Q12 2Q12

4.0

4.2

4.5

4.1

4.3

2Q11 3Q11 4Q11 1Q12 2Q12

3.6

3.9 3.8 3.8

4.3

2Q11 3Q11 4Q11 1Q12 2Q12

846.0 867.1 923.1 855.4 844.0

100,0

180,0

260,0

340,0

420,0

500,0

580,0

660,0

740,0

820,0

900,0

980,0

1060,0

1140,0

1220,0

1300,0

2Q11 3Q11 4Q11 1Q12 2Q12

-47.6 -31.4 22.6

104.0 125.7

-2.4% -1.7% 1.2%

5.5% 6.4%

-25,0%

-23,0%

-21,0%

-19,0%

-17,0%

-15,0%

-13,0%

-11,0%

-9,0%

-7,0%

-5,0%

-3,0%

-1,0%

1,0%

3,0%

5,0%

7,0%

9,0%

-200

-100

0

100

200

300

400

500

2Q11 3Q11 4Q11 1Q12 2Q12

427.9 453.8 407.7

508.6

630.3

11.8% 11.6% 10.7%

13.3% 14.6%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0

100

200

300

400

500

600

700

800

2Q11 3Q11 4Q11 1Q12 2Q12

44.7

184.1 223.6

-45.4 -9.1

1.1% 4.4%

5.0%

-1.1% -0.2%

-30,0%

-28,0%

-26,0%

-24,0%

-22,0%

-20,0%

-18,0%

-16,0%

-14,0%

-12,0%

-10,0%

-8,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

-100

0

100

200

300

400

500

2Q11 3Q11 4Q11 1Q12 2Q12

83.6 75.9 77.0 55.8 49.2

9.9% 8.8% 8.3% 6.5% 5.8%

-23,0%

-19,0%

-15,0%

-11,0%

-7,0%

-3,0%

1,0%

5,0%

9,0%

13,0%

-0,023

99,977

199,977

2Q11 3Q11 4Q11 1Q12 2Q12

23 PAGE Source: JBS

JBS Consolidated Exports Distribution in 1S12

Approximately US$4.4 billion

US$4,387

million

Mexico 15.5%

Japan 11.7%

Russia 9.3%

E.U 6.1%

Canada 4.8%

Chile 3.6%

Taiwan 2.1%

Others 15.1%

China, Hong Kong and

Vietnam 14.6%

Africa and Middle East 9.1%

South Korea 6.2%

Venezuela 1.9%

24 PAGE Source: JBS

Debt Profile

2Q12 Net debt to EBITDA was 4.27x.

The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 110% of short-term debt.

3.60

4.04 4.00

4.30 4.27

0

1

2

3

4

-100

100

300

500

700

900

1100

1300

1500

2Q11 3Q11 4Q11 1Q12 2Q12

. Leverage EBITDA

Leverage

.

23%

27%

28%

28%

77%

73%

72%

72%

2Q12

1Q12

4Q11

3Q11

Short Term Long Term

ST / LT Debt Profile

The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12

25 PAGE

Bonds 37%

Other 63%

2Q12

Debt Maturity Schedule and Profile

JBS S.A. 57%

Subsidiaries43%

2Q12

Bonds / Other

Source: JBS Financial Statements 2Q12

Net Debt: 15,276.9 (R$ million)

656

883

4,469

1,381

2,567

169

3,726

2,738

Short Term Net of Cash 2013 2014 2015 2016 2017 2018 2019 and after

Breakdown by Currency and Company

R$ 25% USD 75% 2Q12

26 PAGE

Classroom

Social

Germinare School is a social initiative of the JBS Institute which

looks at Education as the principal instrument to transform society.

Laboratory

Social

GERMINARE SCHOOL

Purpose: to prepare well-educated and well-rounded citizens with a

broad cultural repertoire, sound ethical values and a positive

attitude toward life and society.

Number of students (2011): 270

Capacity of 630 students.

Area: 6,000 m2

Sport complex, swimming pool, computer lab and chemistry lab.

Amount invested: R$15 million

Selection process: tests and group dynamics.

Top Brazilian professors.

JBS Institute funds Germinare School Social Responsibility

Source: JBS

Started in 2010

27 PAGE

Amazon

Environmental

Satellite image

Social & Environmental

Purpose: reduce deforestation in the Amazon Biome; avoid

purchasing cattle from Environmentally Protected Areas – EPAs,

Indigenous reserves and protected areas; eradication of slave

labor in Brazil.

JBS Brazil monitors a 100% of its cattle suppliers properties via

satellite geo-referencing (GPS monitoring).

After the property coordinates are collected, the data is keyed into

JBS’s registry of cattle suppliers and is sent to an outsource company

to be analyzed by superimposing on a map constructed from satellite

images and the DETER(1) and PRODES(2) produced by Brazil’s National

Institute for Space Research – INPE.

JBS contains a database of almost 12,000 cattle ranches registered

in the Amazon Biome.

Satellite image monitoring of the Amazon Biome

JBS actions related to cattle traceability and the Amazon Biome Sustainability

Source: JBS Sustainability Policy (1)Real Time Deforestation Detection (2)Legal Amazon Deforestation Monitoring Project

JBS SA participates in CDP - Carbon Disclosure Project.

Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2.

Mission

“

”

To be best in 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 to all our employees.