Presentation Jbs 5r6i16

February, 2011

Agenda Company Overview

JBSS3 Stock Performance and Ongoing Actions

Market Overview

3Q10 Highlights

2

Who We Are

Our Mission To be the best at 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 for all our employees.

Our Values Excellence Planning Determination Discipline Availability Openness Simplicity

3

Corporate Structure CHAIRMAN JBS S.A. Joesley Batista

CEO President JBS S.A. Wesley Batista

Finance Director Brazil Marcos Bastos Marcos graduate from Mackenzie University in Business istration and has a MBA in Finance from San Francisco State University. Worked in many financial institutions in Brazil, primarily in Investment banking, Financial Projects, and Portfolio management. Started in 2008 with JBS.

Corporate Law Department Francisco de Assis e Silva Francisco is the director of the Law Department. Has a post graduated from the University of Mackenzie.

Started working at JBS in December of 2001 and later became a member of the Executive Board in January of 2007.

Investors Relations Jeremiah O’Callaghan / Guilherme Arruda Jerry has a Engineering Degree from the University of Cork College in Ireland. Immigrated to Brazil in 1979. Started working in the Beef Sector in 1983 and in JBS in 1996 in order to develop the Trade Area and eventually became the Investors Relations Officer. Guilherme graduated in Business and Economics from the University of California. Start in the Company in 2009 after working for 7 years for BTG Pactual.

Corporate And . Controller Eliseo Fernandes Eliseo has a Business istration and ing Degree from the University Católica de Pernambuco and a post graduate degree in Business istration from FGV. He started with JBS in August 2005 and eventually became Director of istration and Corporate Governance. He has 8 years Experience in Auditing and Consulting and 10 years in the Retail industry.

CEO MERCOSUL Marco Bortolon Marco has more than 10 years experience in JBS. Initially started as a Production Manager and in 2009 was promoted to Chief Operating Officer of the Brazil Beef Division.

New business José Luis Medeiros

Commercial and Distribution International Offices Marco Bichieri

JBS Hides Roberto Motta

Marco has more than 24 Roberto has more than 20 José Luiz has a degree years in the Leather in ing and has years of experience in the Industry. Was been working in the Beef Protein Sector. Worked responsible for Sector since 1975. 14 for more than 20 years in incorporating BMZ Hides year in Bertin and Bertin. with the JBS Group. started at JBS in 1997. January 2010 became the Director of New Business.

Dairy Gilson Teixeira Gilson has more than 25 years experience in Finance and Controller of business units of Bertin, where he later served as a member of the Board for 5 years.

4

Corporate Structure CEO President JBS S.A. Wesley Batista

CEO USA Don Jackson

Pilgrim's Pride William W. Lovette William is the President, CEO and Director of Pilgrim’s Pride since January 2010. He is bringing to Pilgrim’s 27 years of experience in the poultry industry. Since 2008, he served as president and COO of Case Foods, Inc . Furthermore, he spent 25 years with Tyson Foods in various senior management roles.

Beef USA Bill Rupp

Bill has learned the Beef Industry from the ground up. Right out of college, he began learning the business at Cargill where he worked for 25 years. He was a general plant manager and eventually went to build a meat processing facility in Canada. He later became the VP of Operations, then was the President of the Beef Business, and eventually became the president of Cargill Meat Solutions. Bill ed JBS in 2010 as the President of the US Beef Business.

Pork Martin Dooley

CFO André Nogueira

Martin has a degree in André has a degree in Biology from the Economics from the University of Eastern Universidade Federal Illinois. Worked in Swift Fluminense, a for his whole life, having specialization in started the company as a Marketing from PUC-SP, manager trainee in 1983. a MBA from Fundação In 2007 was given the Don Cabral and a position of president of the masters in Economics Pork Division of JBS USA. from Universidade de Brasilia. Worked more than 20 years in the banking sector and started at JBS USA in 2007 after the Swift acquisition.

JBS Five Rivers Mike Thoren Mike is the President and CEO of Five Rivers since the Start of the Company. Has a Masters of Science in Agricultural Economics and has a degree in Agribusiness from the University of Washington State.

JBS Carriers Moe Schroder

Trading Robert Wadland

Moe has more than 30 years experience in Transportation Sector. Graduated from the University of Ryerson, Toronto, Canada. Occupied the position of Vice President of Sales, Dedicated Operations at KLLM and before that was in various executive positions at CR England . Moe ed JBS to run the carrier business

Robert has 27 years of meat trading experience with 17 years of that at JBS enhancing exports out of Australia and New Zealand. Recently transferred to the US to run the group’s trading business unit

Human Resources Bob Daubenspeck Robert assumed this position in February 2009 and before that was in JBS Packerland from 2002 to 2008.

CEO Australia Iain Mars Iain was born in England and worked in the Beef Industry for his whole life. He became the President and CEO of JBS Australia in 2007, after the acquisition of Swift. He has worked in JBS since 2005.

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Shareholders

Treasury 1.7% PROT - FIP 8.0% Market 18.7%

FB Participações S.A. 54.5% BNDESPAR 17.0%

 Average daily trade volume of R$ 35.2 million in 4Q10

Source: JBS

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Leading, Sizeable and Diversified Business Platform

Ranking

Beef

Chicken

Pork

Hides / Leather

Dairy

Lamb

1st

2nd

3rd

1st

3rd

1st

Global

Global

U.S.A.

Global

Brazil

Global

65

39

3

23

7

6

‘000 heads/day:

mm heads/day:

‘000 heads/day:

‘000 hides/day:

‘000 tons/day:

Production Units

41.7

68.3

‘000 heads/day:

5.4

1.0 5.0

Geographic Presence and Installed Capacity

28.8

7.3

49.0

9.0

6.0

4.0

6.0

20.0

3.0

Total:

0.9

0.6

89.4

Total: 7.9

2.0

Total: 49.0

Total: 82.3

Total: 5.4

Total: 24.0

Well-Recognized Brands

7

Our Strategy

8

Distribution Platform with Access to Key Markets

Growth 1 -2 % 3% 4%

Growth 1 9% 13 % 8%

Growth 2%

1

Growth 1 7% 25 %

8%

16 % 5%

Distribution Center Sales Offices

1 Real growth of total consumption in tons – 2010E to 2015E Source – OECD-FAO

9

Agenda Company Overview

JBSS3 Stock Performance and Ongoing Actions

Market Overview

3Q10 Highlights

10

Animal Protein Consumption Growth in the Last Decade

47.7%

EU - 27

North America

Central America

41.4%

7.5%

29%

23.7%

Middle East Southeast Asia

70.2%

South America

East Asia

48.7%

Sub Saharan Africa

32.2%

23.3%

Oceania

3

Source: FAPRI February 2010

11

Global Consumption by Protein 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2000

2001

2002

2003

Pork (1000 MT CWE)

2004

2005

2006

Beef (1000 MT CWE)

2007

2008

2009

2010

Chicken (1000 MT)

Source: USDA

12

Global Average Export Price 5.00

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50 2000

2001

2002

2003

Pork (US$/MT)

2004

2005

2006

Beef (US$/MT)

2007

2008

2009

2010

Chicken (US$/MT)

Source: USDA

13

Global Trade by Protein 9000

8000

7000

6000

5000

4000

3000

2000

1000

0 2000

2001

2002

2003

Pork (1000 MT CWE)

2004

2005

2006

Beef (1000 MT CWE)

2007

2008

2009

2010

Chicken (1000 MT)

Source: USDA

14

Global Supply-Demand for Poultry GLOBAL SUPPLY-DEMAND FOR POULTRY

Choose Year for Chart:

2020

Estimates for Chart

GS Goldman Sachs Estimates

2020 GLOBAL SURPLUS (DEFICIT) OF POULTRY MEAT Goldman Sachs Estimates

European Union

8.9

Prod.

Imports

Deficit

0.9

1.1

Exports

Russia

Surplus Million tons

-

0.6

Million tons

9.1

3.2

Cons.

Prod.

3.7

Imports

United States

0.2

4.1 22.5

21.6

19.1

Prod.

15.1

Imports

Exports

Cons.

Prod.

Brazil

Imports

India 0.1

-

Exports

0.8 3.8

3.7

17.0

1.9

1.1

9.4 Imports

Exports

Cons.

Thailand -

7.6

Prod.

Cons.

China 1.1

-

Exports

Cons.

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Source: Goldman Sachs

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Global Supply-Demand for Pork GLOBAL SUPPLY-DEMAND FOR PORK

Choose Year for Chart:

2020

Estimates for Chart

GS Goldman Sachs Estimates

2020 GLOBAL SURPLUS (DEFICIT) OF PORK MEAT Goldman Sachs Estimates

Canada

European Union

Surplus Million tons Deficit

0.3

0.1

Million tons

1.1

1.3 22.7

2.2

21.6

1.2 Prod.

Imports

Exports

Cons.

Prod.

Imports

United States

0.5

Prod.

Imports

Exports

9.9

3.1

Cons.

Prod.

Imports

Exports

China

1.4 56.4

55.8 4.4

3.0

(0.3) Prod.

Exports

Cons.

0.3

-

0.2

2.2

Imports

4.1

Brazil

1.6

Prod.

-

1.1

Mexico

0.8

Cons.

Russia

2.5

11.9

Exports

Cons.

Prod.

Imports

Exports

Imports

Exports

Cons.

Cons.

Source: Goldman Sachs

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Global Supply-Demand for Beef GLOBAL SUPPLY-DEMAND FOR BEEF & VEAL

Choose Year for Chart:

2020

Estimates for Chart

GS Goldman Sachs Estimates

2020 GLOBAL SURPLUS (DEFICIT) OF BEEF & VEAL Goldman Sachs Estimates

United States 1.5

1.6

12.8

Prod.

Imports

Exports

European Union

Surplus Million tons Deficit

0.2

0.8

Million tons

12.7

8.0

Cons.

Prod.

8.6

Imports

Brazil

Exports

Cons.

China

-

1.2

0.2

6.0 15.4

8.5

7.3 9.5

Prod.

Imports

Exports

Cons.

Prod.

Argentina & Uruguay -

Imports

India

0.4

-

Exports

Cons.

Australia

-

0.4

1.6

3.6

3.2

4.1

3.7

2.4 0.8

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Source: Goldman Sachs

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Beef Exports Brazil vs USA

Both Brazil and the US continue to lead global beef exports.

Brazilian Beef Exports (Tons)

US Beef and Veal Exports (Tons)

1,400,000 24,4%

1,200,000

4,500

800,000

4,000

700,000

3,500

600,000

2,7%

1,000,000

9,8%

5,000 4,500

23,1%

4,000 3,500

3,000

500,000

3,000

800,000

2,500

400,000

2,500

600,000

2,000

300,000

2,000

1,500

400,000

1,000 200,000

500

0

0 2005

2006

2007

Br Beef Exports (Tons)

2008

2009

1,500

200,000

1,000

100,000

500

0

0 2005

2006

2007

2008

2010

Avg. Price (US$/Ton)

USA Beef & Veal Exports (Tons)

2009

Jan-Nov Jan-Nov 2009 2010

Avg. Price (US$/Ton)

Source: USDA and Secex

18

Chicken Exports Brazil vs USA  The reopening of the Russian market in late August should boost US chicken exports in the latter half of 2010.

Brazilian Chicken Exports (Tons)

US Chicken Exports (Tons) 2,000

5,000,000

1,800

13,4%

1,600

4,000,000

4,000,000

1,200 -4,8%

3,500,000

1,000 -1,5%

3,000,000

1,400

6,0%

800

2,500,000 1,200

3,000,000

1,000

2,000,000

1,000,000

800

1,500,000

600

1,000,000

400

500,000

200 0

0 2005

2006

2007

BR Chicken exports (Tons)

2008

2009

2,000,000

600 400 200

-

-

2005

2006

2007

2008

2010

Avg. Price (US$/Ton)

USA Broiler Meat Exports (Tons)

2009

JAN-NOV JAN-NOV 09 10

Avg. Price (US$/Ton)

Source: USDA and Secex

19

Agenda Company Overview

JBSS3 Stock Performance and Ongoing Actions

Market Overview

3Q10 Highlights

20

Highlights - 3Q10  Net revenue for the 3Q10 was R$14,069.6 million, practically stable in comparison to the 2Q10, which was R$14,116.3 million.  Consolidated EBITDA increased by 2.6% q-o-q, reaching R$1,026.4 million for the 3Q10. EBITDA margin was 7.3% in the quarter. The main operating highlights were:  JBS Mercosul operations presented EBITDA of R$363.7 million and EBITDA margin of 10.4% for the quarter, versus 9.5% in 2Q10, despite challenges such as cost of raw materials and FX-rate.  JBS USA Pork presented EBITDA of US$90.8 million and a historical EBITDA margin of 11.8% in 3Q10.  JBS USA Chicken (PPC) had an EBITDA of US$170.0 million, 33.2% higher q-o-q, with EBITDA margin of 9.9%.  Consolidated customer base grew 15.3% q-o-q, primarily in Mercosul, and now exceeds 350 thousand clients globally. 21

Consolidated Performance by Protein 1

R$ Millions

Net Income

EBITDA

Margin EBITDA

Beef

8,624.2

448.2

5.2%

Pork

1,350.8

158.8

11.8%

Chicken

2,994.1

309.5

10.3%

Others

1,100.5

109.8

10.0%

14,069.6

1,026.4

7.3%

Total

Export Growth

1

Customer Base Evolution

4,500.0

400.0

4,000.0

350.0

3,500.0

300.0

3,000.0

250.0

2,500.0 2,000.0

200.0

1,500.0

150.0

1,000.0

100.0

500.0

50.0

-

4Q09

1Q10

Exports (R$ Millions)

2Q10 Exports (mil tons)

3Q10

4Q09

1Q10

2Q10

3Q10

Customers (thousand)

(1) in Local GAAP

22

JBS Consolidated Results Net Revenue (R$ million)

EBITDA and EBITDA Margin (R$ million)

7.1%

6.9%

7.3%

5.4% 3.5%

1,000.0

1,026.4

862.0

14,116.3

14,069.6

12,550.3

397.8

8,379.9

7,408.9

-11.6%

3Q09

291.9

69.4%

4Q09

12.5%

1Q10

36.3%

-0.3%

2Q10

3Q10

3Q09

116.7%

4Q09

16.0%

1Q10

2.6%

2Q10

3Q10

Source: JBS EBITDA Margin (%)

23

Performance by Business Units JBS MERCOSUL

JBS USA Beef

Net Sales (R$ billion)

Net Sales (US$ billion)

3.5

3.5

3.3

3.0

2.8 1.7

1.7

3Q09

4Q09

1Q10

2Q10

JBS USA Pork

JBS USA Chicken (PPC)

Net Sales (US$ million)

Net Sales (US$ billion)

Including Australia

3Q10

EBITDA (R$ mm) EBITDA margin

3Q09

2.8

2.8

4Q09

1Q10

3.4

559

2Q10

3Q10

EBITDA (US$ mm) EBITDA margin

3Q09

606

4Q09

646

1Q10

739

2Q10

1.8

1.7

2Q09

3Q09

772

3Q10

EBITDA (US$ mm) EBITDA margin

1.7

1.7

2Q10

3Q10

EBITDA (US$ mm) EBITDA margin 10.6%

11.9% 9.5%

11.8%

10.4%

6.6%

6.0% 3.8%

352.6 2.9%

334.5

7.5%

5.9%

4.5% 3.1%

363.7

4.7%

5.4%

6.6%

90.8

184.4

2.7%

194.9 126.0

127.6 48.7

103.5

112.2

28.6

47.3

3Q09

170.0

164.6

170.5 108.4

9.9%

9.3%

34.9

15.3

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

2Q09

3Q09

2Q10

3Q10

Source: JBS EBITDA Margin (%)

24

Revenue Distribution by Market Revenue Distribution by Market 3Q10

Revenue Distribution by Market 2Q10

Chicken Pork Exports 1% Exports 2%

Pork Exports 2%

Beef Exports 25%

Beef Domestic 44%

Chicken Domestic 20%

Beef Exports 25%

Beef Domestic 44%

Chicken Domestic 20%

Pork Domestic 8%

Exports = 28%

Chicken Exports 2%

Pork Domestic 7%

Domestic Market = 72%

Revenue Distribution by Business Units 3Q10

Exports = 29%

Domestic Market = 71%

Revenue Distribution by Business Units 2Q10

USA Chicken 22%

Mercosul 27%

USA Pork 9%

*

USA Beef 42%

*

Source: JBS * Including Australia

25

EBITDA Distribution by Business Units

3Q10

Mercosul 36.4%

2Q10

USA BEEF * 18.1% USA PORK 15.9%

USA Chicken 29.7%

USA BEEF* 36.1%

Mercosul 43.9%

USA Chicken 12.6%

USA PORK 7.4%

Source: JBS * Including Australia

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JBS Consolidated Exports Distribution JBS Exports 3Q10

JBS Exports 2Q10

China 4% South Korea 5%

US$2,326.9 Millions

Taiwan Canada 2% 4%

USA 7%

Others 12%

Africa and Middle East 19% Mexico 12%

E.U. 7%

Russia 10%

Hong Kong 8%

Japan 10%

US$2,3331.0 Millions

Source: JBS

27

Debt Profile 

The ratio of net debt to EBITDA was 2.9x in the quarter, slightly less than 3.0x in 2Q10.



It is important to note that the liquidity of the balance sheet continues to improve, as the cash position amounted to R$4,402.5 million (25.2% higher than 2Q10), almost 90% of short-term debt, compared to 70.0% in the previous quarter and 55.0% in 1Q10.



Additionally, the debt profile also improved. ST debt reached 33.0% of total debt in the 3Q10, compared to 36.0% in the 2Q10 and 40.0% in the 1Q10.

Leverage 3.3

3Q09

3.1

4Q09

3.1

1Q10

ST / LT Profile 3.0

2Q10

Source: JBS *LTM including Bertin and Pilgrim’s Pride pro-forma. EBITDA Margin EBITDA

2.9x*

3Q10

60%

64%

67%

40%

36%

33%

1Q10

2Q10

3Q10

Short term

Long term

28

Agenda Company Overview

JBSS3 Stock Performance and Ongoing Actions

Market Overview

3Q10 Highlights

29

Stock Performance 

JBS’ shares fell 7.5% when compared with the 2nd Quarter closing price. The Ibovespa and the S&P 500 Indexes increased 13.4% and 11.1% respectively, in 3rd Quarter 2010.



The sector, in general, was impacted by factors such as FX-Rate and rising input cost.



The Company continues to focus on measures to enhance the share price.

JBS vs Ibovespa in the 3Q10 130.0 125.0 120.0 115.0 110.0 105.0 100.0

95.0 90.0 85.0 80.0 Jul-10

Aug-10

Sep-10 JBSS3

IBOV

Source: Bloomberg (Base 100 = 01/07/10)

30

Ongoing Actions Pending issues

INALCA JBS

Actions

JBS bought 50% of Inalca JBS in 2008 paying a total of € 218.5 million.

JBS filed a request at the International Chamber of Commerce in Paris to guarantee the right to nominate the CFO, which has been denied JBS from the outset. The Company requested Ernst & Young to conduct a full audit, which in progress. The Company closed 3 plants and concentrated its production in a

Argentina

more efficient industrial complex.  Laid off 1,500 employees from 4 plants.  Negotiated commercial agreements that will increase plants utilization and deficiencies as well as maximizing the Pilar Distribution Center.  Transferred headquarters from Buenos Aires to Rosario, reducing istrative expenses.  3Q10 income already reflects an improvement over the previous quarter due to these actions.

31

Ongoing Actions Pending issues

Convertible Debentures

Actions  JBS paid a of R$ 521,940,000.00 to its Debenture holders on December 23rd, 2010.  JBS communicated that it is in advanced stages of negotiation with

its main Debenture holder for the 2nd issuance of mandatorily convertible Debentures. The

new

Debentures

will

have

 Amount: R$4 billion  Period: 5 years  Interest:8.5% per annum, paid quarterly  Mandatorily convertible into JBS S.A. shares at the end of the 5th year.

Debt Distribution and Income Tax Rate

the

following

characteristics:

 Conversion price of R$ 9.50 per share (JBSS3), plus interest paid on the debentures, net of taxes, minus the remuneration paid to shareholders in the period (dividends, interest on equity, etc).

 The management is in advanced studies ed by specialized consultants, aiming to rebalance the Company's debt, according to the cash flow of each region.

 The Company believes that a solution will be implemented during the first half of 2011, which should reduce the cost of capital and maximize the goodwill amortization, increasing the Company's profitability

32

Coverage by Equity Analysts The Company continues to work on increasing coverage by equity analysts. Please find here below the list of present analysts covering JBS.

Institution

Analyst

Recommendation

Target Price

Buy

13.18

Banco do Brasil

Mariana Peringer

Bradesco

Ricardo Boiati

Market Perform

8,80

BTG Pactual

Fábio Monteiro

Buy

9.30

Goldman Sachs

Gustavo Wigman

Neutral

7,30

HSBC

Pedro Herrera

Overweight

9.50

Merrill Lynch BofA

Fernando Ferreira

Neutral

8.00

Santander

Luis Miranda

Buy

9.60

Safra

Erick Guedes

Outperform

10.35

UBS

Gustavo Oliveira

Neutral

8.80

Votorantim

Luiz Carlos Cesta

Neutral

8.80

Source: Bloomberg and Company

33

IR s: [email protected] +55 11 3144 4447 www.jbs.com.br/ir “In God We Trust, Nature We Respect”

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