1Q09 Conference Call Presentation

7/30/2019 1Q09 Conference Call Presentation

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1st Quarter 2009 Results

JBS S.A.

May 15th, 2009

In God we Trust


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Rodrigo Gagliardi

Investor Relations Manager

Jeremiah OCallaghan

Investor Relations Director

Joesley Mendona Batista

CEO

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Presenters


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Our Values

The Foundation Of Our Culture

Planning

Determination

Discipline

Availability

Openness

Simplicity

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Agenda

1Q09 Highlights

Debt Profile

Consolidated Results

Questions and Answers

3

Our Strategy

Final Considerations

Revenue Distribution


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Our Strategy

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Net revenue increased 58.2% from R$5,859.1 million in 1Q08 to R$9,267.9 million in 1Q09.

Consolidated EBITDA increased 20.4% when compared with the same period last year fromR$175.7 to R$211.5 million.

The conclusion of financial and structural adjustments required with a view towards the ongoing

growth of the Company as defined in its strategy.

70.0% of the level reached in relation to cost reductions and efficiency increase.

Sustained EBITDA margin maintenance in the Beef operation in the US (2.2%) bearing in mind theseasonality.

The improvement of the Brazilian market where an EBITDA margin of 7.2% was reached in 1Q09indicating a positive trend in this market.

The consolidation of a Global Production Platform.

The consolidation of the strategy to build a sustainable, direct and efficient global distributionplatform of meat and meat products both chilled and frozen.

Highlights

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JBS Consolidated Results

Net Revenue, EBITDA and EBITDA Margin

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

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Source: JBS

EBITDA Margin (%)

175.7

290.8

470.5

265.9

211.5

3.0%4.1%

2.8%

6.1%

2.3%

1Q08 2Q08 3Q08 4Q08 1Q09

5,859.1

7,129.57,771.5

9,633.29,267.9

1Q08 2Q08 3Q08 4Q08 1Q09

21.7%

65.5%

9.0%

61.8%

24.0%

-43.5%

-3.8%

-20.4%


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Performance by Business Units

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Net Sales(US$ million)

EBITDA (US$ mi)EBITDA margin

JBS USA (Beef)Including Australia

Net Sales(US$ million)

EBITDA (US$ mi)EBITDA margin

JBS USA (Pork)

Net Sales( million)

EBITDA ( mi)

EBITDA margin

INALCA JBS

Net Sales(R$ million)

EBITDA (R$ mi)EBITDA margin

JBS MERCOSUL

Source JBS

EBITDA Margin (%)

2.0

2.62.8 2.8 2.8

1Q08 2Q0 8 3Q08 4 Q0 8 1Q0 9

59.760.4

-13.5

132.9155.6

-0.7%

5.1%5.6%

2 .2 % 2 .2 %

1Q08 2Q08 3Q08 4Q0 8 1Q09

682620

536600

526

1Q08 2 Q0 8 3Q08 4 Q08 1Q0 9

7.5

25.6

15.619.9

52.1

1.4%

4.3%

7.6%

3.2%2.9%

1Q0 8 2 Q0 8 3 Q0 8 4 Q0 8 1Q0 9

143140132

162144

1Q0 8 2Q08 3Q08 4Q08 1Q09

5.6

8.37.3

6.67.6

3.9%

5.1%5.3%4.7%5.6%

1Q0 8 2 Q0 8 3 Q0 8 4 Q0 8 1Q0 9

1.3

1.4

1.8

1.6

1.4

1Q08 2Q0 8 3Q08 4 Q0 8 1Q09

53.569.4

199,1

58.2

58,2

4.1%

10.4%

3.7%

5.6%

4.3%

1Q0 8 2 Q0 8 3 Q0 8 4 Q0 8 1Q0 9


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JBS Net Debt/EBITDA

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3.74

2.89 2.77

2.31

1.95

2.52

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

Net Debt / EBITDA Pro Forma per TRIMESTER

Exchange Rate:

R$ / US$ = 2.32 03/31/2009

US$ / $ = 1.33 03/31/2009

*

JBS continues its plan to reduceleverage in 2009.

Net Debt = R$ 4,174 MM

EBITDA pro forma = R$ 1,658 MM= 2.52

Source: JBS

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


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Evolution of the EBITDA Margins of JBS USA (Beef)

compared with its local peers

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Source: JBS and estimates of JBS based upon public data from peersEBITDA margins of the Companies taking into consideration beef business*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 Margin (%)

JBS S.A. ManagementPrevious Management

0.9% 0.9%

6.4%

3.0%

1.1%

3.2%

-0.4%

2.3%

-0.9%

1.3%1.3%

0.5%

1.2%

-0.9%

5.1%

2.2%

2.2%

5.6%

0.3%

-0.6%

-3.5%

-0.7%

FY04* FY05* FY06* FY07* 3Q07** 4Q07** 1Q08** 2Q08** 3Q08** 4Q08** 1Q09**

Peers Average Beef USA

JBS Beef USA

5.7 p.p Gain


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JBS Consolidated Gross Revenue Distribution

Revenue Distribution by Business Units 1Q09 Revenue Distribution by Market 1Q09

Source: JBS Source: JBS

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Domestic Market78%

Exports22%

Beef Italy

5% Beef Argentina

2%

Beef Brazil

15%

Beef USA

57%

Pork USA

12%

Beef Australia

9%


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JBS Consolidated Exports Distribution

Exports Distribution 1Q09

Source: JBS

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Japan16 %

E.U.16 %

USA11%Mexico

9%

Russia8%

South Korea6%

China5%

Hong Kong5%

Canada4%

Middle East

4%

Taiwan2%

Others14 %

JBS Exports 1Q09: US$ 901.4 Million


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Final Considerations

We are motivated and confident about the Companys performance in

2009

We will continue to take good care of the financials of the Company.

In April 2009, JBS USA issued a Senior Unsecured Notes in the principalamount of US$700 million, with a coupon of 11.625%, due 2014.

Our global production platform will continue to grow in the search forefficiencies, new synergies between our operations with an eye towards

reducing costs.

We will consolidate the strategy of creating a sustainable, direct andefficient Global distribution platform of meat and meat products both chilledand frozen.

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Questions & Answers

JBS S.A.

May 15th, 2009

In God we Trust


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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.

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1Q09 Conference Call Presentation

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