3Q10 Conference Call Presentation

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3rd Quarter 2010 Results
November 12th, 2010

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.

2

Presenters
Joesley Mendonça Batista
CEO of JBS S.A.

Wesley Mendonça Batista
CEO of JBS USA

Jeremiah O’Callaghan
Investors Relations Officer

Guilherme Arruda
Investors Relations
3

Agenda
Company Overview

JBSS3 Analysis and Measures

Market Overview

3Q10 Highlights

4

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

5

Corporate Structure
CEO President Joesley Batista

Finance Director Brazil Marcos Bastos
Marcos graduate from Mackenzie University in Business Administration 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 Adm. Controller Eliseo Fernandes
Eliseo has a Business Administration and Accounting Degree from the University Católica de Pernambuco and a post graduate degree in Business Administration from FGV. He started with JBS in August 2005 and eventually became Director of Administration 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

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.

Marco has more than 24 Roberto has more than 20 José Luiz has a degree years in the Leather in Accounting 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.

6

Corporate Structure
CEO USA/AUS Wesley Batista

Pilgrim's Pride Don Jackson

Beef USA Bill Rupp

Pork Martin Dooley

Australia Iain Mars

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
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 Joined JBS to run the carrier business

Trading Robert Wadland
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.

CFO André Nogueira
André has a degree in Economics from the Federal University Fluminense, a masters in Capital Markets from FGV – Fundação Getúlio Vargas, and masters in Economics from University of Brasilia in 2003. Worked more than 20 years at Bank of Brazil and started at JBS USA in 2007 after the Swift acquisition.

Don is the President, CEO and Director of Pilgrim’s Pride since January 2009. For 9 years was the president of the chicken division of Foster Farms and vice president of Food Services in ConAgra Poultry Company. Before this he worked at Seaboard farms of Athens for 22 years, including 4 years as the CEO of the Chicken Division

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 joined JBS in 2010 as the President of the US Beef Business.

Martin has a degree in Iain was born in England Biology from the and worked in the Beef University of Eastern Industry for his whole life. Illinois. Worked in Swift He became the President for his whole life, having and CEO of JBS Australia started the company as a in 2007, after the manager trainee in 1983. acquisition of Swift. He In 2007 was given the has worked in JBS since position of president of the 2005. Pork Division of JBS USA.

7

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$ 33.3 million in 3Q10

Source: JBS

8

Leading, Sizeable and Diversified Business Platform
Beef
Ranking

Chicken

Pork

Hides / Leather

Dairy

Lamb

1st
Global 75
‘000 heads/day:

2nd
Global 33
mm heads/day:

3rd
U.S.A. 3
‘000 heads/day:

1st
Global 26
‘000 hides/day:

3rd
Brazil 7
‘000 tons/day:

1st
Global 6
‘000 heads/day:

Production Units

40.2 1.1

55.6

1.4

Geographic Presence and Installed Capacity

5.7 28.6 6.9 48.5 28.6 6.0 0.7 Total: 7.6 Total: 48.5 1.2 Total: 91.4 Total: 1.4 Total: 27.5 4.5

8.7
3.0 1.0 Total: 88.2

23.0

WellRecognized Brands

9

Our Strategy

Rationale
Branding
• Associating quality and branding to

increase client loyalty
• Customized and further processed

Value added products

products for the end users
• Expanding a global distribution

Sales and distribution platform

platform to reach end clients
• Developed an efficient

Production platform

and diversified global production platform

EBITDA Margin

Financial structure

Experienced management

Cost reduction, process optimization

Risk management

JBS’ Value & Strategy
10

Distribution Platform with Access to Key Markets

Growth 1 -2 % 3% 4% Growth 1 9% 13 % 8% Growth 1 7% 25 %

Growth 2% 8%

1

16 %
5% Distribution Center Sales Offices

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

11

Agenda
Company Overview

JBSS3 Analysis and Measures

Market Overview

3Q10 Highlights

12

Animal Protein Consumption Growth in the Last Decade

47.7%

EU - 27

North America

7.5%

41.4%

23.7%

East Asia

Central America

29% 70.2%

Middle East Southeast Asia
48.7%

South America

32.2%

Sub Saharan Africa

23.3%

Oceania

3

Source: FAPRI February 2010

13

Global Supply-Demand for Poultry
GLOBAL SUPPLY-DEMAND FOR POULTRY Choose Year for Chart: Estimates for Chart 2020 GS
Goldman Sachs Estimates

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

European Union

Surplus Deficit
9.1 3.2 0.6

-

1.1

0.9

8.9

3.7

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

United States 1.1 4.1

China 0.2

19.1

21.6
15.1

22.5

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Brazil
0.1

India -

Thailand

7.6
17.0

0.8

3.7 9.4

3.8

1.9

1.1

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Source: Goldman Sachs

14

Global Supply-Demand for Pork
GLOBAL SUPPLY-DEMAND FOR PORK Choose Year for Chart: Estimates for Chart 2020 GS
Goldman Sachs Estimates

2020 GLOBAL SURPLUS (DEFICIT) OF PORK MEAT
Goldman Sachs Estimates
European Union 0.1 1.1

Canada

Surplus Deficit
1.3 22.7
1.2

0.3

2.2

21.6

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

United States

Russia -

0.5

2.5

1.1
9.9

11.9

3.1

4.1

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Mexico
-

Brazil 0.3 1.4 55.8 2.2
4.4

China

0.8
1.6

0.2

56.4 (0.3)

3.0
Prod. Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Source: Goldman Sachs

15

Global Supply-Demand for Beef
GLOBAL SUPPLY-DEMAND FOR BEEF & VEAL Choose Year for Chart: Estimates for Chart 2020 GS
Goldman Sachs Estimates

2020 GLOBAL SURPLUS (DEFICIT) OF BEEF & VEAL
Goldman Sachs Estimates
European Union 0.8

United States 1.5 1.6

Surplus Deficit
12.7 8.0

0.2

12.8

8.6

Prod.

Imports

Exports

Cons.

Prod.

Imports

Exports

Cons.

Brazil

China

0.2

1.2

-

6.0 15.4
9.5
Prod. Imports Exports Cons. Prod. Imports Exports Cons.

7.3

8.5

Argentina & Uruguay 0.4

India

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

16

Beef
Exports Brazil vs USA

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

Brazilian Beef Exports (Tons)
1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0
2005 2006 2007 2008 2009 JAN-SEPT JAN-SEPT 09 10
10.8% 23.2%

US Beef and Veal Exports (Tons)
4.500 4.000 3.500 3.000 2.500 800.000 700.000 600.000 500.000
23.1% 8.4%

5.000 4.500 4.000 3.500 3.000

2.000
1.500 1.000 500 0

400.000
300.000 200.000 100.000 0
2005 2006 2007 2008 2009 JAN-SEPT JAN-SEPT 09 10

2.500
2.000 1.500 1.000 500 0

Beef Exports

Avg Price in US$ per Ton

Beef Exports

Avg Price in US$ per Ton

Source: USDA and Secex

17

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

Brazilian Chicken Exports (Tons)
4.000.000 3.500.000
13.5%

US Poultry Exports (Tons)
2.000 1.800 1.600 1.400 4.000.000 3.500.000 3.000.000 2.500.000 2.000.000 1.500.000 1.000.000 500.000 2005 2006 2007 2008 2009 JAN-SEPT JAN-SEPT 09 10
-5.9%

1.200 1.000 800
-5.7%

3.000.000
6.5%

2.500.000 2.000.000

1.200
1.000 800 600 400 200 0
2005 2006 2007 2008 2009
JAN-SEPT JAN-SEPT 09 10

600 400 200 -

1.500.000
1.000.000

500.000
0

Chicken Exports

Avg Price in US$ per Ton

Chicken Exports

Avg Price in US$ per Ton

Source: USDA and Secex

18

Agenda
Company Overview

JBSS3 Analysis and Measures

Market Overview

3Q10 Highlights

19

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.
20

Consolidated Performance by Protein
1

1

R$ Millions Beef Pork Chicken Others Total

Net Income 8,624.2 1,350.8 2,994.1 1,100.5 14,069.6

EBITDA 448.2 158.8 309.5 109.8 1,026.4

Margin EBITDA 5.2% 11.8% 10.3% 10.0% 7.3%

Export Growth
450,0

Customer Base Evolution
400,0 350,0

400,0
350,0 300,0 250,0 200,0 150,0 100,0 50,0 4Q09 1Q10 2Q10 3Q10

300,0
250,0 200,0 150,0

100,0
50,0 4Q09 1Q10 2Q10 3Q10

Industrialized (R$ Millions)
(1) in Local GAAP

Industrialized (thousand tons)

Customers (thousand)

21

JBS Consolidated Results
Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million)
6,9% 5,4% 3,5% 7,1% 7,3%

1.000,0 862,0

1.026,4

14.116,3

14.069,6

12.550,3

8.379,9

397,8
7.408,9

291,9

-11.6%

69.4%

12.5%

-0.3%

36.3%

116.7%

16.0%

2.6%

3Q09

4Q09
Source: JBS

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

EBITDA Margin (%)

22

Performance by Business Units
JBS MERCOSUL JBS USA Beef
Including Australia

JBS USA Pork

JBS USA Chicken (PPC)

Net Sales (R$ billion)

Net Sales (US$ billion)

Net Sales (US$ million)

Net Sales (US$ billion)

3,5 3,0

3,5

3,3

3,4

1,8
606

1,7

2,8
1,7 1,7

2,8

2,8

559

646

739

772

1,7

1,7

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

2Q09

3Q09

2Q10

3Q10

EBITDA (R$ mm) EBITDA margin
11,9% 9,5% 6,6% 10,4%

EBITDA (US$ mm) EBITDA margin

EBITDA (US$ mm) EBITDA margin
11,8%

EBITDA (US$ mm) EBITDA margin
10,6% 9,3% 7,5% 9,9%

6,0% 3,8% 4,5%

5,9% 3,1% 2,7% 4,7% 5,4% 6,6%

352,6
2,9%

334,5

363,7
194,9 170,5 108,4 126,0

90,8

184,4 164,6 127,6

170,0

103,5

48,7 28,6 15,3 34,9

112,2 47,3

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

2Q09

3Q09

2Q10

3Q10

Source: JBS EBITDA Margin (%)

23

Revenue Distribution by Market
Revenue Distribution by Market 3Q10
Chicken Pork Exports 1% Exports 2%

Revenue Distribution by Market 2Q10
Pork Exports 2% Chicken Exports 2%

Beef Exports 25%

Beef Domestic 44%

Beef Exports 25%

Beef Domestic 44%

Chicken Domestic 20% Pork Domestic 8%

Chicken Domestic 20% Pork Domestic 7%

Exports = 28%

Domestic Market = 72%

Exports = 29%

Domestic Market = 71%

Revenue Distribution by Business Units 3Q10

Revenue Distribution by Business Units 2Q10

USA Chicken 22% USA Pork 9%

Mercosul 27%

*

USA Beef 42%

*

Source: JBS * Including Australia

24

EBITDA Distribution by Business Units

3Q10

2Q10

Mercosul 36.4%

USA BEEF * 18.1% USA PORK 15.9% Mercosul 43.9%

USA BEEF* 36.1%

USA Chicken 29.7%

USA Chicken 12.6%

USA PORK 7.4%

Source: JBS * Including Australia

25

JBS Consolidated Exports Distribution
JBS Exports 3Q10 JBS Exports 2Q10

China 4% South Korea 5%

Taiwan Canada 2% 4%

Others 12%

Africa and Middle East 19% Mexico 12%

USA 7%

E.U. 7%

Russia 10%

Hong Kong 8%

Japan 10%

US$2,326.9 Millions

US$2,3331.0 Millions

Source: JBS

26

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 3,1 3,1 3,0 2,9x*

ST / LT Profile

60%

64%

67%

40%
1Q10

36%
2Q10

33%
3Q10

3Q09

4Q09

1Q10

2Q10

3Q10

Short term

Long term

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

27

Agenda
Company Overview

JBSS3 Analysis and Measures

Market Overview

3Q10 Highlights

28

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 impacting 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 3T10
130,0 125,0 120,0 115,0 110,0 105,0 100,0

95,0 90,0 85,0
80,0 Jul-10
Source: Bloomberg (Base 100 = 01/07/10)

Aug-10
JBSS3 IBOV

Sep-10

29

Ongoing Actions
Pending issues

Actions

INALCA JBS

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 to JBS from the outset. The Company requested for Ernst & Young to conduct a full audit, which is already in progress.

The Company closed 3 plants and concentrated its production

Argentina

to a more efficient industrial park.  Laid off 1,500 employees from 4 plants.  Settled commercial agreements that will increase plants utilization and Pilar Distribution Center.  Transferred headquarters from Buenos Aires to Rosario, reducing administrative expenses.  3Q10 income already reflects a improvement over the previous quarter due to the mentioned actions. 30

Ongoing Actions
Pending issues

Actions

Convertible Debentures

The Company believes that the most probable scenario is the

conversion of the outstanding debentures at JBS USA during 2011.

Debt and IR Distribution

 The management is in advanced studies supported 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

31

Coverage by Equity Analysts
Two analysts initiated coverage of JBS in 3Q10. The Company continues to work on increasing coverage by equity analysts.
Institution Analyst Recommendation Target Price

Banco do Brasil
Bradesco BTG Pactual Goldman Sachs HSBC Link Merrill Lynch BofA

Mariana Peringer
Ricardo Boiati Fábio Monteiro Gustavo Wigman Pedro Herrera Rafael Cintra Fernando Ferreira

Buy
Outperform Buy Neutral Overweight Outperform Buy

13.18
11.00 14.20 8.60 11.50 12.00 9.50

Santander
SLW UBS Votorantim

Luis Miranda
Cauê Pinheiro Gustavo Oliveira Daniel Fonseca

Buy
Buy Neutral Buy

13.50
12.30 9.00 12.00

Source: Bloomberg and Company

32

Final Remarks



The efficiency gains, business diversification of the Company and expansion of the direct distribution

have been more than offset the increase in some input costs.


Global demand for protein continues solid and the Company believes that it can benefit from this scenario through its market penetration around the world.

 

The Company remains committed to reducing its financial leverage. The Company's management is taking the measures to address outstanding issues in order to

enhance share value.


JBS’ customer base continues to grow organically, particularly in Mercosul, and the Company remains committed to expanding the global direct distribution

33

Thank You!

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

34

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