JBS S.A.

JBS will operate Frangosul plants in Brazil

May 07th, 2012

Presenters

Wesley Mendonça BatistaCEO

James Cleary

2PÁG.

Jeremiah O’CallaghanInvestor Relations Director

James ClearyCEO JBS Brazil Poultry

JBS S.A. at a glance

Founded in the 1950’s in West Central Brazil

IPO in 2007

Leading protein producer in the World

Revenues of US$36.9 billion in 2011

EBITDA of US$1.9 billion in 2011

3PÁG.

EBITDA of US$1.9 billion in 2011

Annual net revenue organic growth of 13% in local currency y.o.y.

135,000 employees worldwide

145 production units in 5 continents

Market cap of approximately US$13 billion(1)

(1) 03/19/2012

31.1

36.9

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

Rio BrancoCacoal 1Cacoal 2

VenadoTuerto

JV Beef Jerky

Merger with BertinJBS Couros5 new units

Tatiara Meat (Swift Austrália)

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

Pilgrim´s Pride3 Geographic and market segment diversification

1 Market Leader

4 Well-recognized brands

2 Track Record

of successful

acquisitions

Rockdale Beef

SmithfieldBeef

Tasman

4PÁG.

0.4 0.4 0.5 0.5 0.4 0.7 1.2 1.5 2.0

7.2

16.5 17.2

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

Barra do Garças (Sadia)

Andradina (Sadia)

Barretos (Anglo)

Pres. Epitácio e Campo grande (Bordon)

Araputanga(Frigoara)

Cáceres (Frigosol)

Iturama (Frigosol)

Cacoal 2Porto VelhoVilhena (Frigovira)

Pedra Preta (Frigo Marca)

TuertoPontevedra (CEPA)

Net revenue (USD billion)

RosárioSan Jose(Swift Argentina)

brands

Source: JBS

BeefFive Rivers

3 Geographic

and market

segment

diversification

1 Market Leader

4 Well-recognized brands

2 Track Record of successful acquisitions

Presence in more than 100 countries, in 5 continents

Strategic Geographical Distribution

5PÁG.Source: JBS

brands

Slaughterhouse and Industry

Sales Office

Pork

LeatherBeef

Distribution CenterDairy

Biodiesel

Chicken

Geographic Presence andProductionCapacity

85,825 heads/day

Beef

7.9 mm birds/day

Chicken

50,000 heads/day

Pork

5,400 tons/day

Dairy

24,000 heads/day

Lamb

76,100 hides/day

Leather

3

60

37

20

7

1

58

17

134

6 Lamb

Poultry IndustryOverview of the Global Market Overview of the Global Market

World Poultry ConsumptionThe poultry industry has a large and global demand base. Emergent populous markets such as China, India and Russia still have a low consumption per capita

World Poultry Consumption Poultry Consumption¹ (US$ Bn)

65

104

162

203

234

2000 2005 2010 2015E 2019E

Global Consumption (2010) : 94 M ton

CAGR:9.6%

CAGR:3.6%

Consumption

7PÁG.1 - Includes poultry, turkey, duck, goose and guinea fowlSource: FAO, USDA

Poultry Consumption¹ (M ton)

6983

94106

116

2000 2005 2010 2015E 2019E

Relevant poultry consumption in the world, with growth prospects for the next years, boosting Brazilian exports

CAGR:

3.1%

CAGR:

2.3%

Over 40

30-40

20-30

10-20

0-10

Consumptionkg/person/year

Positive Prospects for the Industry

The poultry industry is increasing its importance and replacing other meats in the global consumption market

Main Growth Drivers

Poultry Industry

� Second largest meat category

− Expected to surpass pork by 2030

− Increasing demand from emerging markets

− Substitution effect from other meats Poultry30%

Pork39%

Sheep5%

Beef26%

Beef

Global Meat Market Breakdown

2000

2010

8PÁG.Fonte: USDA, FAO

Increase in the world population

GDP growth

Cheapest source of protein

Quick to produce vis-à-vis other proteins

No religion barriers

Poultry34%

Pork39%

Sheep4%

Beef23%

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����

����

����

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Poultry39%

Pork37%

Sheep4%

Beef20%

2030E

Attractive Industry Dynamics

The poultry has several advantages when compared with other meats

Fast Production

Low Cost

Production

Chicken Products Key

Highlights

� Whole Chicken

− Consumed worldwide

− Exported frozen to Middle East

− Broiler: “regular" chicken

− Griller: small chicken consumed

individually in Middle East

1

2

Intrinsic Advantages of

Poultry

9PÁG.Source: Market Information

High Nutritional

Qualities

No Religious

Barriers

� Chicken Cuts

− Chicken Fillet

� Preferred part of the chicken in the developed

countries

− Dark Meat

� Parts of chicken excluding the filet

� Mainly exported to Asia where it is highly

consumed

� Processed Products

− Mainly consumed in western countries

− Increased exports to developing

countries

2

3

Poultry

Top Countries from the Global Chicken Market

Brazil plays a relevant role in the industry

Top 7 Consumers – 2011

M Tons

13.7 13.0

9.6 9.1

3.5 3.0 2.9

USA China Brazil EU-27 Mexico Russia India

16.7

13.2 13.1

9.4

2.9 2.9 2.6

USA China Brazil EU-27 India Mexico Russia

Top 7 Producers – 2011

M Tons

10PÁG.Source USDA, Ubabef

3.9

3.2

1.00.5 0.4 0.2 0.2

Brazil USA EU-27 Thailand China Argentina Turkey

0.90.8

0.7

0.60.5

0.4 0.4

Japan Saudi Arabia

EU -27 Mexico Russia Iraq Hong Kong

Top 7 Exporters – 2011

M Tons

Top 7 Importers – 2011

M Tons

Global Surplus (deficit)Goldman Sachs forecast for animal protein in 2020

11PÁG.Source: Goldman Sachs

Beef & Veal

Surplus Deficit

Pork

Chicken

Brazilian Poultry Industry

Largest export market with promising domestic market

Poultry Exports – Main States (2010)Overview

� 3rd largest poultry consumer in a expanding domestic market:

– Increase in purchase power � boosting demand for processed products

– Change in Brazilian Western consumption habits

� Largest poultry exporter:

– Brazil is a top 3 poultry producer with13.1 M tons in 2011

– In 2011, it exported approximately 30% of its production

– Middle East and Asia are the main Brazilian exports destination

Production (M ton) Poultry Consumption per Capita – kg / person / yearExports Destination 2010

MTMTMTMTMSMSMSMS GOGOGOGORSRSRSRS SCSCSCSCPRPRPRPR SPSPSPSP MGMGMGMGState Market Share

Santa Catarina 26.7%

Paraná 26.2%

R. Grande do Sul 21.0%

São Paulo 7.0%

Goiás 5.2%

Mato Grosso 4.5%

Minas Gerais 4.3%

M. Grosso do Sul 3.4%

Dist. Federal 1.5%

Total: 3.9 M tons

12PÁG.Source: USDA, Ubabef, Secex, MDIC

Production (M ton) Poultry Consumption per Capita – kg / person / year

Middle East36%

America7%Africa

13%

Asia26%

Others17%

Exports Destination 2010

Export market represents ~30%

35.5 35.7 37.0 38.5

38.544.1

2006 2007 2008 2009 2010 2011

9,310,3

10,9 11,012,2

13,1

2006 2007 2008 2009 2010 2011

JBS Poultry BrazilFrangosulFrangosul

Frangosul at a Glance

The Company is the 3rd largest poultry exporter in Brazil

Main Operational Assets

Brief Overview

� Frangosul was founded in 1970 in the city of Montenegro (RS). The company was acquired by Group Doux in 1998

o Poultry’s production capacity of 1,100,000 chickens / day

o Pork’s production capacity of 3,000 hogs / day

o Sales of R$ 1.4 billion in 2011

o Well recognized brands with presence in both domestic and export market

� 4 slaughtering plants

– 3 dedicated plants for poultry

– 1 dedicated plant for pork

� 1 dedicated plant for processed products and 2 breaded plants

� 4 feed factories

� 6 hatcheries

Brands

Premium brand dedicated to the Brazilian domestic market (South Region)

� Highly recognized and established brands with strong reputation for quality and innovation

14PÁG.(1) Includes Brazilian domestic market

Source: Company

� 6 hatcheries

� Grand parents (2.8 M females/year)

� Growing breeders (2.2 M females/year)

� Hatching eggs production (6.3 M eggs/week)

Multi Concept Operations Main Export Markets

Sourcing Product Market Distrib.

� Whole

� Cuts

� Processed

� 100 countries¹

� 5 continents

� Retailers

� Food Service

� Industry

Value brand dedicated to the Brazilian export market

Eastern Europe

LatAm

Asia

Middle East

Markets

� Saudi Arabia

� Gulf

� Iraq

� Yemen

� China

� Japan

� Korea

� Chile

� Venezuela

� Argentina

� Cuba

� Greece

� CIS

Sales Breakdown of Frangosul

The Company is the 3rd largest poultry exporter

83%

8%

3% 6%

Poultry Pork Processed Others

Sales 2011( By Market )

Exports Domestic Markets

8%

7%

70%

15%

Poultry Pork Processed Others

15PÁG.

Volume 2011(364,823 Tons)

87%

6%3% 4%

Poultry Pork Processed Others

7%5%

87%

1%

Poultry Pork Processed Others

295,178 tons 69,645 tons

Source: Company

Slaughter Plants

The Company has plants strategic located in the State of Rio Grande do Sul and Mato Grosso do Sul.

MAMAMAMAACACACAC AMAMAMAMRORORORORRRRRRRR APAPAPAPPAPAPAPAMTMTMTMTMSMSMSMS GOGOGOGOTOTOTOTOSCSCSCSCPRPRPRPR SPSPSPSP MGMGMGMGRJRJRJRJ ESESESESBABABABAPIPIPIPI CECECECE RNRNRNRNPBPBPBPBPEPEPEPE ALALALALSESESESE

4

Montenegro I

– Poultry

– Area (m²): 30,498

– Capacity (heads / day): 550,000

– Production 2010 (tons): 148,863

Ana Rech

– Pork

– Area (m²): 23,419

Montenegro II

– Processed Products

– Area (m²): 11,885

– Capacity (tons / day): 180

– Production 2010 (tons): 78,273

1A

1B

2

16PÁG.

RSRSRSRS1

3

2

–

– Capacity (heads / day): 3,000

– Production 2010 (tons): 55,227

Passo Fundo

– Poultry

– Area (m²): 25,511

– Capacity (heads / day): 430,000

– Production 2010 (tons): 162,050

Caarapó

– Poultry

– Area (m²): 8,710

– Capacity (heads / day): 127,000

– Production 2010 (tons): 37,507

3

4

Export Site

Total Production Capacity

� Poultry: 1,100,000 heads / day

� Pork: 3,000 heads / day

� Processed Products: 180 tons / day

Poultry Site

Processed Products

Pork Site

Investment Highlights

JBS Frangosul

Leading Company

Intrinsic advantages

Expanding poultry market

� Increase in the poultry consumption

� Limited production capacity in the biggest consuming countries

� New markets opening up to importations

� No religion barriers

� Low production costs compared to other protein sources

� Fast production cycle

� One of the world’s leading producers

� Sizable asset with a production capacity of ~365,000 tons (2011)

� Brazil’s 3rd largest poultry exporter

17PÁG.

Multi concept

operations

Recognised brands

Proven relation with customers

� Brazil’s 3rd largest poultry exporter

� Guarantees a stable performance through:– Multi-product: whole, cuts, processed products

– Multi-market: operating in 100 countries and on 5 continents

– Multi-distribution: retailers, food service, industry

� Strong brands with global impact:– Frangosul is a respect poultry brand on the export market:

– LeBon has a 10% growth rate in Brazil

– [Doux Brand?]

� Longstanding relations with customers: averaging 20 years with the Top 20

JBS Frangosul

Mission

“ To be best in what we set out to do, totally focused onour business, ensuring the best products and services for our customers, solidity for our suppliers,

”

for our customers, solidity for our suppliers,

satisfactory profitability for our shareholders and the

certainty of a better future to all our employees.