4Q09 Earnings Release

7/30/2019 4Q09 Earnings Release

http://slidepdf.com/reader/full/4q09-earnings-release 1/28

4th Quarter 2009 Results

JBS S.A.March 5

th, 2010

Investor Relations Contact Jeremiah O’Callaghan: IR Officer

E-mail: [email protected] Phone: +55 (11) 3144-4055

Website: www.jbs.com.br/ir

4Q09 Conference CallDate: Monday, March 8

th, 2010

English: 12:00pm (Brazil time)10:00am (New York time)

Phone USA: + 1 412 858 4600Phone Brazil.: + 55 11 4688 6361

Password: JBS

Portuguese: 10:00am (Brazil time)08:00am (New York time)

Phone: +55 (11) 4688 - 6361Password: JBS



1


São Paulo, March 5th, 2010 – JBS S.A. (“JBS”) (Bovespa: JBSS3), the global leading producer of

animal protein announces today its results for the fourth quarter (4Q09) and for the full year of2009. For the purposes of analysis, this report considers the results for the quarter endedSeptember 30, 2009 (3Q09) and December 31, 2008 (4Q08) as well as the fiscal year 2008.

Because of the acquisition of a controlling interest in Pilgrim’s Pride and the incorporation of

Bertin near the end of 2009, JBS is also presenting the consolidated results pro forma includingBertin, Pilgrim’s Pride, and JBS as of 31st of December 2009.

The consolidated results of JBS are presented in Brazilian Reais (R$) and when separatelyanalyzed each business unit reports its results in the currency of the country in which itoperates. The operations of JBS Australia are an integral part of the subsidiary JBS USA and

both results refer to the period of 13 weeks ended December 27, 2009 (4Q09).

HIGHLIGHTS

Net Profit of R$127.9 million in 4Q09.

Net Revenue for 2009 was R$34,311.8 million, representing a 13.1% increase y-o-y.

In 4Q09 the consolidated EBITDA increased 49.6% compared to 4Q08, from R$265.9

million to R$397.8 million. The consolidated EBITDA margin was 5.4% for the period,

compared with 2.8% for 4Q08

Completion of the Bertin S.A. Merger and the acquisition of a controlling interest in

Pilgrim’s Pride Corporation.

A pro forma Net Revenue of R$55,223.6 million, 82.0% higher than 2008.

EBITDA pro forma of R$3,058.0 million in 2009, increase of 164.5% over the last year.

32 51 73150 185

345432

548 602

1,156

3,058

4.92%5.73% 6.0%

11.0%9.7%

10.5%11.2%

13.6%

4.3% 3.8%

5.5%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

EBITDA (R$ mm) EBITDA Margin

CAGR : 58%

*Pro forma EBITDA including Bertin and Pilgrim’s Pride. Source: JBS

“In God we trust, Nature we respect”



2


Message from the President

As I have said in the past, a crisis for one is an opportunity for others, opportunity to make theacquisitions from which a corporation can emerge from a crisis situation stronger and prepared

to grow when economies and consumption resumes growth. In 2008, when we saw the crisislooming, we tightened our financials, reduced our leverage and prepared ourselves for thedifficult year ahead. It was a decision made in good time. By the second half of 2009, webegan to see the road ahead more clearly and were able to take our company to another level by making some relevant acquisitions.

In the US, as we planned to expand our downstream integration, we needed a more diversifiedprotein base in that market and Pilgrims Pride fitted into our strategy well. We now haveleading positions in the North American market in all three proteins and that gives us the scaleand diversity to reach out efficiently to end users of our products. We plan to build on that basein the coming years by producing more customized products and by delivering them to the

doorstep of as many customers as possible.

In Brazil, as the cattle herd begins to show signs of recovery, we were able to merge our

business with Bertin in a manner which served the needs of both. While we continue to controlour business, we were able to bolt on a company of a size and scale that will be

complimentary towards accelerating our growth strategy, not only at primary production levelbut also downstream in the direction of our consumers. We now have a solid base to addvalue to some of our by-products, such as hides and tallow, not to mention our new dairybusiness about which we are extremely optimistic. JBS is no longer a primary producer of beef,

nor is it a primary producer of animal protein. We are now a food company with a verydiversified production platform not only in the geographical sense but also in the various

proteins building a bridge to consumers.

I would like to comment each platform as performance evolved through last year and whatour vision is going forward.

As I mentioned, the Brazilian herd has turned the corner. Cattle ranching is economically

feasible again and we already saw signs of a more fluid supply in 2009. This helped take our margins from a low near middle single digits at the beginning of last year to almost doubledigits by the end. As we rationalize costs and maximize scale, that trend should continue this

year. Our currency has been strong here and our economy has been very robust. Revenue lostin the export market – in part because of the currency – has been compensated by the

increase in consumption in our domestic Brazilian market. We expect that trend to continue in2010 although we will, I believe, see prices climbing on the international market primarilybecause of the recovery of the various emerging markets but also because of a limited supply

base.



3


Although we made the right decisions within our company in Argentina to return to profitability – and we did feel we were turning a corner, our business there has been subjected tounpredictable conditions which will probably play a part in limiting our growth and profitability

again this year. While the principles of a free economy are denied us, we will be unable to takethe measures that our shareholders expect of us until such time as we can access again the

good customers we have been serving from Argentina for so many years. Self imposed traderestrictions and the application of high tariffs will not enhance growth in our sector and the

earlier they end, the better for the whole beef supply chain.

Australia has the privilege of being a sanitary haven for livestock which gives it access to allmajor markets. The key to growth there is exports and we saw recovery in exports to the Asiancountries, but more importantly, we saw Australia firming a foothold in Europe with regular supply of beef and lamb. Last year, we saw a tight cattle supply situation there but signs arethat the herd size is now recovering again. With the acquisition of Tatiara Meat Company near

yearend, we now also have a leading position in lamb production, a sector in which Australia isdemonstrating solid constant growth.

People comment that Europe, particularly the southern part, was one of the worst affectedregions due to the global crisis. We are pleased to say that our European operations based in

Italy put in a stalwart display in the last year. While sales may have declined inside Italy, wewere able to increase our market share in the African countries where we have strongdistribution channels and we were very pleased with the inauguration of our beef patty plant in

Russia serving customers with whom we have good long term relations and with whom we planto continue our growth.

Finally in North America, we were able to sustain margins and saw some growth and recovery

(particularly in the by-products) which augurs for a good solid 2010. As we now integrate

Pilgrim’s Pride and implement synergies, our SG&A tend to reduce even further and we already

see growth in the export market. By the way, we gained substantial market share in some ofthe key export markets, such as Japan, Korea and Russia as well as breaking into markets thatwere untouched by US exports, in the last six months and we will continue this drive during this

year.

Although we made substantial acquisitions during the last year, we continued to maintain awatchful eye on our balance sheet. Having acquired a controlling interest in Pilgrim's Pride andmerged with Bertin, we made sure that these investments were matched with non debt relatedcash injections in the company to maintain our leverage at manageable levels. Although we



4


consider our present leverage level comfortable we will be taking measures during this year toreduce this still further.

Sustainability has been a topic much discussed last year. We heard negative comments fromsome channels some of which were directed towards our sector and ourselves. Let me beclear, JBS in its roots, is a sustainable company. We come from the land where we learned aschildren to respect nature and preserve it as fundamental to our future. My family and I carrythat philosophy through our business practices. The key to our business is the raw material that

comes from the land. We want to protect and preserve that base not only because of our principles but also with a view towards the future of our company.

Once again, I want to close my comments by remembering all those who cooperated with mein 2009. I am overwhelmed by the unity and support of a team of dedicated, brilliantprofessionals that have helped us through another year, a difficult one, from which we are ableto see our revenue base grow more than 50%. Our board and my family wish to thank you allwholeheartedly as we count on you to continue to stand by us in 2010.

Joesley Mendonça Batista

Chief Executive Officer



5


ANALYSIS OF CONSOLIDATED RESULTS

Consolidated analysis of the principal operational indicators of JBS

R$ million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue 7,408.9 8,379.9 -11.6% 9,633.2 -23.1% 34,311.8 30,340.3 13.1%

Cost of Goods Sold -6,570.1 -7,635.3 -14.0% -8,781.8 -25.2% -31,112.7 -27,347.8 13.8%

Gross Income 838.8 744.6 12.7% 851.4 -1.5% 3,199.1 2,992.5 6.9%

Gross Margin 11.3% 8.9% - 8.8% - 9.3% 9.9% -

Selling Expenses -370.4 -383.0 -3.3% -448.3 -17.4% -1,562.8 -1,517.6 3.0%

General and Adm. Expenses -161.8 -150.5 7.5% -227.5 -28.9% -705.6 -570.1 23.8%

Net Financial Income (expense) -128.7 7.8 - -238.8 -46.1% -601.1 -612.2 -1.8%

Goodwill Amortization 0.0 0.0 - -45.7 - 0.0 -179.9 -

Non-recurring Expenses 0.4 -0.8 - -0.4 - 10.9 -28.0 -Operating Income 178.3 218.1 -18.3% -109.3 - 340.5 84.7 302.0%

Income and social contribution taxes -50.4 -66.1 -23.8% 53.4 - -211.7 -62.2 240.3%

Minority Interest 0.0 -0.4 - 2.7 - 0.6 3.4 -82.9%

Net Income (Loss) 127.9 151.5 -15.6% -53.2 - 129.4 25.9 399.7%

EBITDA 397.8 291.9 36.3% 265.9 49.6% 1,285.2 1,156.1 11.2%

EBITDA margin 5.4% 3.5% - 2.8% - 3.7% 3.8% -

Number of Heads Slaughtered and Sales Volume

4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Heads slaughtered (thousand)

Cattle 3,056.0 3,258.9 -6.2% 2,828.0 8.1% 12,624.6 10,895.8 15.9%

Pork 3,388.8 3,160.9 7.2% 3,337.4 1.5% 12,468.6 12,576.3 -0.9%

Smalls 719.4 644.8 11.6% 712.7 0.9% 1,922.1 1,759.6 9.2%

Volume Sold (thousand tons)

Domestic Market 1,374.3 1,387.1 -0.9% 1,343.2 2.3% 5,509.7 4,574.5 20.4%

Fresh and Chilled Beef 1,235.0 1,232.9 0.2% 1,219.9 1.2% 4,963.6 4,051.8 22.5%

Processed Beef 33.4 32.1 4.0% 31.6 5.7% 127.8 124.6 2.5%

Others 105.9 122.1 -13.3% 91.7 15.5% 418.3 398.1 5.1%

Exports 421.8 415.4 1.5% 418.7 0.7% 1,728.1 1,721.0 0.4%

Fresh and Chilled Beef 398.8 391.1 2.0% 392.9 1.5% 1,637.2 1,609.3 1.7%

Processed Beef 21.7 20.9 3.9% 22.1 -1.7% 88.1 99.9 -11.8%

Others 1.3 3.4 -62.2% 3.7 -65.2% 2.9 11.8 -75.4%

TOTAL 1,796.1 1,802.5 -0.4% 1,761.9 1.9% 7,237.8 6,295.5 15.0% JBS finished the year 2009 with the growth revenue of 13.1% when compared to the prior year,

mainly due to the completion of the acquisition of Smithfield Beef near the end of 2008,partially offset by the deteriorating market conditions caused by the global crisis, and aconsequent reduction of sale prices in the beef and Pork operations of the USA.

The EBITDA reached 1,285.2 million in 2009, which was an 11.2% increase when compared to

R$1,156.1 million in 2008. Despite the adverse conditions in the Argentine, Australian, and thePork business unit of the United States, JBS was still able to present a consolidated EBITDAmargin of 3.7% for the period, practically unchanged in relation to 2008. The net income for

the period was R$129.4 million, compared with R$25.9 million in 2008.



6


In 4Q09, the net revenue was R$7,408.9 million, 23.1% less than the revenue of 4Q08, whichreflects mainly the appreciation of the real against the dollar in the period. Despite the

revenue reduction, EBITDA increased by 49.6% in comparison with the same period last year,going from R$265.9 million in 4Q08 to R$397.8 million in 4Q09, mainly as a result of operationalimprovements in Brazil and the United States. Consolidated EBITDA margins climbed from 2.8%in 4Q08 to 5.4% in 4Q09.

265.9 211.5 384.0 291.9 397.8

1,156.1 1,285.2 2.8%

2.3% 4.1%

3.5% 5.4% 3.7%

4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009

9,633.2 9,267.9 9,255.0 8,379.9

7,408.9

30,340.3 34,311.8

4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009

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

-11.6% 34.8% - 3.8%

- 20.4% - 0.1% 81.6% - 9.5%

- 24.0%

Source: JBS EBITDA Margin (%)

13.1% 11.2%

3.8%



7


ANALYSIS OF CONSOLIDATED INCOME PRO FORMA

On 28th of December 2009, the Company acquired, through its subsidiary JBS USA, 64% of thecontrolling shares of Pilgrim’s Pride Corporation (PPC) and on 31st December 2009 integrated

Bertin in accordance with the Relevant Facts made to the market during that time.

Aiming to provide the market with a clear picture of the future consolidated results of the

company, the following is a summary of the consolidated income statements pro forma,including the results for Bertin and Pilgrim’s Pride during the year ending on the 31st December

of 2009.

2008

R$ million JBS S.A. Bertin S.A. PPC1 JBS Consolidated JBS S.A.

Net Revenue 34,311.8 7,297.4 13,614.3 55,223.6 30,340.3

Cost of Goods Sold -31,112.7 -5,652.3 -12,542.5 -49,307.5 -27,347.8

Gross Income 3,199.1 1,645.1 1,071.8 5,916.1 2,992.5

Gross Margin 9.3% 22.5% 7.9% 10.7% 9.9%

SG&A -2,268.3 -1,267.0 -764.4 -4,299.8 -2,087.7

Net Financial Income (expense) -601.1 -777.1 -329.5 -1,707.7 -612.2

Goodwill Amortization 0.0 0.0 0.0 0.0 -179.9

Non-recurring Expenses 10.9 20.8 7.1 38.8 -28.0

Operating Income 340.5 -378.1 -15.0 -52.7 84.7

Income and social contribution taxes -211.7 -199.8 248.2 -163.3 -62.2

Minority Interest 0.6 -8.1 -0.5 -8.0 3.4

Net Income (Loss) 129.4 -586.0 232.7 -223.9 25.9

EBITDA 1,285.2 748.7 1,024.0 3,058.0 1,156.1

EBITDA margin 3.7% 10.3% 7.5% 5.5% 3.8%

2009

(1) - Since the fiscal year of PPC ends on the 30th of September of 2009, we excluded the first quarter (September 1 st, 2008 to

December 31st, 2008) and included the first quarter of Fiscal year 2010 (September 1st, 2009 to December 31st, 2009), and so we canobserve the whole fiscal year of 2009.



8


Indebtedness

R$ Million 12/31/09 09/30/09 Var.%

Net debt 9,467.3 3,841.9 146.4%

Cash and cash equivalents 4,962.5 2,035.3 143.8%Short term debt 5,272.1 2,437.4 116.3%Long term debt 9,157.7 3,439.7 166.2%

Gross debt 14,429.8 5,877.1 145.5%

Net Debt/EBITDA* 3.1x 3.3x * The last twelve months include Bertin and Pilgrim's Pro-Forma.

At the end of 4Q09, JBS incorporated Bertin S.A. and of Pilgrim’s Pride, which contributed to

increase the Company net debt. Simultaneously, JBS completed the issuance of convertibledebentures, with a total value of US$2 billion, bringing the net debt to R$9,467 million, or 3.1xLTM EBITDA (versus 3.3x in 3Q09).

Additionally, it should be noted that the company’s cash position is sufficient to cover, almost

entirely, the short term debt of JBS, and current assets exceed current liabilities by almost 50%,demonstrating the liquidity of the Company’s balance sheet.

As demonstrated below, the balance of short and long term debt was practically unchangedy-o-y.

Source: JBS

37% 38%

63% 62%

2009 2008 Long Term Short Term

5,479.6 14,429.8



9


RESULTS BY BUSINESS UNIT ANALYSIS

Beef Business Unit of JBS USA – 64% of JBS S.A. Net RevenueIncludes JBS Australia

Net Revenue of the Beef Business Unit of JBS USA was US$2,817.0 million for the period,

practically stable when compared to 4Q08 and 3Q09 (Up 1.0% and down 0.9%, respectively).

This stability in Net Revenues is due to the reduction in volume produced, partially offset by an

increase in sales price, due to the generally more favorable market conditions. This is the resultof the strategy adopted by the company in 2009, which was to increase the carcass yield

which compensated for the reduction in the volume slaughtered.

The EBITDA rose from US$60.4 million in 4Q08 to US$126.0 million in 4Q09, representing an

increase of 108.6% for the period. In comparison with 3Q09, the increase was 16.2%. Thisincrease was due to the favorable market conditions, reduction of cost of Sales, General, andAdministrative (SG&A), besides the strategy described above adopted by the company.

The JBS Australia operations were strongly affected during the crisis period in important marketsand by the appreciation of the Australian dollar against the United States dollar.

Highlights

(The numbers reported are in BRGAAP until 31/12/08. From 1Q09 until present the numbers arein USGAAP.)

US$ million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Heads slaughtered (thousand) 1,891.4 2,044.6 -7.5% 1,922.5 -1.6% 8,012.8 6,769.9 18.4%

Net Revenue 2,817.0 2,843.3 -0.9% 2,806.3 0.4% 11,232.3 9,924.8 13.2%

EBITDA 126.0 108.4 16.2% 60.4 108.6% 398.7 286.6 39.1%

EBITDA margin % 4.5% 3.8% 2.2% 3.5% 2.9%

Breakdown of Net Revenue

Domestic Market 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (US$ million) 2,074.4 2,075.9 -0.1% 2,113.1 -1.8% 8,556.1 7,047.2 21.4%

Volume (thousand tons) 713.9 767.5 -7.0% 783.4 -8.9% 3,075.9 2,452.3 25.4%

Average Price (US$/Kg) 2.91 2.70 7.4% 2.70 7.7% 2.78 2.87 -3.2%

Exports 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (US$ million) 742.5 767.5 -3.2% 676.5 9.8% 2,746.6 2,877.6 -4.6%

Volume (thousand tons) 277.1 272.1 1.8% 293.8 -5.7% 1,143.7 1,107.0 3.3%

Average Price (US$/Kg) 2.68 2.82 -5.0% 2.30 16.4% 2.40 2.60 -7.6%



10


The Pork Business Unit of JBS USA – 13%of JBS S.A. Net Revenue

The Pork Business Unit of JBS USA obtained a Net Revenue US$605.6 million for the period, 0.8%better when compared to 4Q08 which US$600.5 million, a positive variation in EBITDA of 0.4percentage points, which reflects an increase in production volume, partially offset by areduction in sales price, a consequence of the unfavorable market conditions in relation to4Q08.

In comparison to the previous quarter (3Q09), the growth in revenue was 8.3% and EBITDAmargin went from 2.7% to 4.7%. The revenue growth reflects an increase in volume sold due to

the better market conditions because of the seasonal factors in the period, partially offset by areduction in sale prices.

For the accumulated year, a reduction of Net Revenue and EBITDA is observed, which reflectsa global crisis that still affects important markets, as well as the adverse effects caused by

Swine Flu.

Highlights

(The numbers reported are in BRGAAP until 31/12/08. From 1Q09 until present the numbers arein USGAAP.)

US$ million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Animals slaughtered (thousand) 3,388.8 3,160.9 7.2% 3,337.4 1.5% 12,468.6 12,576.3 -0.9%Net Revenue 605.6 559.3 8.3% 600.5 0.8% 2,245.0 2,438.1 -7.9%

EBITDA 28.6 15.3 86.9% 25.6 11.7% 76.1 113.7 -33.1%

EBITDA margin % 4.7% 2.7% 4.3% 3.4% 4.7%



Net Revenue (US$ million) 523.1 476.8 9.7% 507.9 3.0% 1,922.6 2,047.1 -6.1%

Volume (thousand tons) 337.8 287.7 17.4% 294.1 14.9% 1,169.9 1,105.1 5.9%

Average Price (US$/Kg) 1.55 1.66 -6.6% 1.73 -10.3% 1.64 1.85 -11.3%

Exports 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (US$ million) 82.5 82.5 0.0% 92.6 -10.9% 322.4 391.0 -17.6%

Volume (thousand tons) 45.5 39.0 16.8% 40.1 13.6% 169.3 179.2 -5.5%

Average Price (US$/Kg) 1.81 2.12 -14.4% 2.31 -21.6% 1.90 2.18 -12.7%



11


INALCA JBS Business Unit - 5% of JBS S.A. Net Revenue

INALCA JBS’ net r evenues decreased 12.9% in relation to 4Q08 and 3.2% in relation to 3Q09,reflecting a macroeconomic environment that is still challenging in Europe partially offset bysales efforts in certain African Countries as well as Russia.

The EBITDA stood at €7.0 million and the margin of 5.0%, was in line with the margin of 4Q08

(5.1%) and with the historical average of this operation.

Highlights

€ million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Heads slaughtered (thousand) 101.5 106.4 -4.6% 118.8 -14.6% 410.6 459.6 -10.7%

Net Revenue 141.4 146.1 -3.2% 162.3 -12.9% 575.9 577.6 -0.3%EBITDA 7.0 9.7 -27.8% 8.3 -15.7% 28.1 29.1 -3.3%

EBITDA margin % 5.0% 6.6% 5.1% 4.9% 5.0% Note: The above figures refer to the 50% of INALCA JBS, owned by JBS S.A.



Net Revenue (€ million) 116.2 120.1 -3.2% 123.3 -5.8% 450.5 427.3 5.4%

Volume (thousand tons) 33.3 33.9 -1.8% 30.9 7.8% 136.6 109.5 24.7%

Average Price (€/Kg) 3.49 3.54 -1.5% 3.99 -12.6% 3.30 3.90 -15.5%

Exports 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (€ million) 25.2 26.0 -3.1% 39.0 -35.4% 125.4 150.3 -16.6%

Volume (thousand tons) 6.3 6.0 5.0% 12.8 -50.8% 25.5 43.1 -40.8%

Average Price (€/Kg) 4.00 4.33 -7.7% 3.05 31.3% 4.92 3.49 41.0%



12


The JBS Brazil Business Unit - 16% of JBS S.A. Net Revenue

The net revenue of JBS Brazil in 4Q09 grew 8.4% when compared with the same quarter of theprevious year, from R$1,242.8 million to R$ 1,347.4 million. The EBITDA went from R$77.9 million in4Q08 to R$124.7 million in 4Q09, an increase of 60.1%. In relation to 3Q09, the revenue increasewas 3.2%, while the EBITDA grew 31.8%. The EBITDA margin went from 7.2% in 3Q09 to 9.3% in4Q09.

In 4Q09 the net revenue in the domestic market showed an increase of 7.0% in relation to theprevious quarter, compensating for the reduction in exports of 3.6%. The reduction of 20.7% of

exports from JBS Brazil in 2009, reflecting the global crises, was made up for by the increase indomestic market sales of 30.2%.

Highlights

R$ million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Heads slaughtered (thousand) 894.5 896.5 -0.2% 631.5 41.6% 3,388.4 3,057.7 10.8%

Net Revenue 1,348.4 1,305.4 3.3% 1,242.8 8.5% 5,148.8 4,866.4 5.8%

EBITDA 124.6 94.6 31.8% 77.9 60.0% 399.2 381.8 4.6%

EBITDA margin % 9.2% 7.2% 6.3% 7.8% 7.8% Breakdown of Net Revenue


Net Revenue (R$ million)

Fresh and Chilled Beef 758.8 716.6 5.9% 565.0 34.3% 2,743.6 1,790.4 53.2%Processed Beef 51.5 50.4 2.2% 54.5 -5.5% 211.2 216.9 -2.6%

Others 101.9 85.3 19.5% 107.1 -4.9% 345.5 527.3 -34.5%

TOTAL 912.2 852.3 7.0% 726.6 25.5% 3,300.3 2,534.6 30.2%

Volume (thousand tons)

Fresh and Chilled Beef 142.8 139.0 2.7% 100.1 42.7% 524.2 350.5 49.6%

Processed Beef 25.3 24.7 2.4% 23.9 5.7% 97.5 94.1 3.6%

Others 85.2 90.8 -6.1% 70.7 20.6% 346.8 318.5 8.9%

TOTAL 253.4 254.5 -0.5% 194.7 30.1% 968.5 763.1 26.9%

Average Price (R$/Kg)

Fresh and Chilled Beef 5.31 5.15 3.1% 5.64 -5.9% 5.23 5.11 2.5%

Processed Beef 2.04 2.04 -0.2% 2.28 -10.6% 2.17 2.30 -6.0%Others 1.20 0.94 27.3% 1.51 -21.1% 1.00 1.66 -39.8%



13


JBS Brazil Business Unit

Exports 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (R$ million)

Fresh and Chilled Beef 354.0 369.5 -4.2% 364.4 -2.9% 1,467.9 1,857.6 -21.0%

Processed Beef 82.8 83.5 -0.8% 151.8 -45.5% 380.6 474.1 -19.7%

TOTAL 436.8 453.0 -3.6% 516.2 -15.4% 1,848.5 2,331.7 -20.7%


Fresh and Chilled Beef 51.5 56.7 -9.1% 43.4 18.7% 179.0 268.3 -33.3%

Processed Beef 15.0 13.4 12.3% 16.8 -10.7% 43.0 71.8 -40.2%

TOTAL 66.5 70.0 -5.0% 60.2 10.5% 222.0 340.1 -34.7%

Average Price (R$/Kg)


Processed Beef 5.52 6.25 -11.7% 9.04 -38.9% 8.86 6.60 34.2% Working Capital in JBS Brazil

With the integration of Bertin, JBS has increased its need for working capital from an average of

33 to 41 days. JBS believes it can reduce this period, because of the effectiveness of theproven management of the company to reduce needs for working capital.

Production and Stock21 days

CLIENT = 33 days

SUPPLIER = 21 days

ProductDelivery

Supplierpayment

Client’spayment

to JBS

WORKING CAPITAL & INTEREST

33 days

3rd Quarter 2009

Client’s orderto JBS

Production and Stock30 days

CLIENT = 43 days

SUPPLIER = 32 days

ProductDelivery

SupplierPayment

Client’spayment to JBS

WORKING CAPITAL & INTEREST

41 days

4th Quarter 2009

Client’s orderto JBS



14


JBS Argentina Business Unit – 2% of JBS S.A. Net Revenue

JBS Argentina Business unit net sales increased 15.9% compared to 4Q08, from $341.2 millionpesos to $395.4 million pesos. EBITDA was -$15.4 million pesos in the period and a negativeEBTDA margin of 3.9%.

Although the Company believes it made the right decisions to return the business around in

Argentina, the sector there has been subjected to unpredictable conditions which played apart in limiting growth and profitability.

While the principles of a free economy are missing in Argentina, the Company will be unable totake the measures necessary to access its traditional customer Base and grow margins.

Highlights

$ Argentinean Pesos million 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Heads slaughtered (thousand) 168.7 211.4 -20.2% 155.2 8.7% 812.8 608.6 33.6%

Net Revenue 395.4 394.7 0.2% 341.2 15.9% 1477.2 1165.3 26.8%

EBITDA -15.4 -89.1 - -20.4 - -166.5 -25.9 -

EBITDA margin % -3.9% -22.6% -6.0% -11.3% -2.2% Breakdown of Net Revenue


Net Revenue (million Arg. Pesos)

Fresh and Chilled Beef 41.2 33.2 24.2% 65.8 -37.3% 189.0 213.4 -11.4%

Processed Beef 57.3 54.9 4.3% 48.9 17.2% 216.7 193.3 12.1%

Others 11.0 13.7 -20.2% 14.3 -23.3% 24.9 91.3 -72.8%

TOTAL 109.5 101.9 7.5% 129.0 -15.1% 430.6 498.0 -13.5%



Processed Beef 8.1 7.4 9.6% 7.7 5.6% 30.3 30.5 -0.7%

Others 20.6 31.2 -33.9% 21.0 -1.8% 71.5 79.6 -10.2%

TOTAL 35.9 43.5 -17.5% 40.1 -10.5% 158.8 144.5 9.9%

Average Price (Pesos/Kg)

Fresh and Chilled Beef 5.79 6.85 -15.5% 5.77 0.3% 3.32 6.20 -46.5%Processed Beef 7.05 7.40 -4.8% 6.35 11.0% 7.16 6.34 12.9%

Others 0.53 0.44 20.8% 0.68 -22.0% 0.35 1.15 -69.7%



15


JBS Argentina Business Unit


Exports 4Q09 3Q09 ∆% 4Q08 ∆% 2009 2008 ∆%

Net Revenue (million Arg. Pesos)

Fresh and Chilled Beef 179.6 180.3 -0.4% 59.4 202.3% 654.1 236.6 176.5%

Processed Beef 91.9 89.5 2.7% 130.6 -29.6% 363.8 368.4 -1.3%

Others 14.4 23.7 -39.3% 22.2 -35.1% 28.7 62.3 -54.0%

TOTAL 285.9 293.6 -2.6% 212.2 34.7% 1,046.6 667.3 56.8%


Fresh and Chilled Beef 17.9 17.3 3.7% 2.7 563.2% 68.1 11.7 482.4%

Processed Beef 6.7 7.6 -11.4% 9.0 -25.5% 30.1 28.1 7.1%Others 1.3 3.4 -62.3% 3.7 -65.2% 2.9 11.8 -75.4%

TOTAL 25.9 28.3 -8.3% 15.4 68.2% 101.2 51.6 96.0%

Average Price (Pesos/Kg)

Fresh and Chilled Beef 10.03 10.44 -3.9% 22.00 -54.4% 9.60 20.22 -52.5%

Processed Beef 13.71 11.83 15.9% 14.51 -5.5% 12.08 13.11 -7.8%

Others 11.21 6.95 61.3% 6.00 86.8% 9.89 5.28 87.3%



16


CAPITAL EXPENDITURE

The total amount of JBS capital expenditure for property, plant and equipment, excludingacquisitions, was R$209.3 million in 4Q09.

Below are the relevant investments made by the Company in the period, among which areacquisitions of new equipment and maintenance of manufacturing facilities.

JBS USA – Beef Business Unit in the USAInvestments were made in the Grand Island, Dumas and Greeley plants to improve the

processing of by-products and wastewater treatment. Further investments were made inrefrigeration structure and equipment to improve efficiency in the deboning hall.

JBS USA – Pork Business UnitThe Company made investments in the Marshalltown, Santa Fe Springs and Worthington plants,

including equipment for casing production as well as equipments to improve yield andpackaging of customized products.

JBS AustraliaIn Australia, investments were made in the Dinmore, Beef City and Rockhampton plants’

refrigeration systems, offal processing and maintenance areas. The Company also finalized theconstruction of a processing facility for hides.

INALCA JBSINALCA JBS made investments in the Odinzovo (Moscow, Russia), Castelvetro and GazoldoDegli Ippoliti Italy units to improve food service activities and increase the slicing andproduction capacity for ham and cured meats, besides a construction of an anaerobicdigester in the Ospedaletto plant.

JBS BrazilIn Brazil, investments were made in the plants located in Campo Grande (MS), Barretos (SP),Vilhena (RO), and Goiânia (GO), to increase slaughtering, carcass chilling, freezing, andstorage capacity.

JBS Argentina

Investments were made in Argentina to increase the freezing capacity of the distributioncenter of Pilar, and the sausage and hamburger production capacity of Ponte Vedra plantswere expanded.



17


RECENT EVENTS

Issue of Debentures

On the 29th of December, 2009 the Company’s shareholders approved the issuance ofsubordinate debentures in a Extraordinary General Meeting. The debentures will bemandatorily exchangeable for certificates of deposits of securities (Brazilian DepositoryReceipts) sponsored at level II or III, backed by common voting shares of JBS USA, or mandatorily convertible into shares of the Company, if JBS USA does not perform the Liquidity

Event (IPO). The debentures cannot be subjected to negotiation for the debenture holders.

Total value of the transaction was R$3,479.6 million, through the issuance of two million

debentures. The proceeds were incorporated in a capital increase with the objective of (a)completing the operation reflected in the Stock Purchase Agreement by JBS USA, through the

subscription of new stocks, were by JBS USA became a 64% shareholders of Pilgrim’s PrideCorporation, and (b) to reinforce the consolidated capital structure of the Company, for theimplementation of investment plans and expansion projects.

U.S.A. IPO

In February 2009, JBS S.A. commented to the market that the Company continues to analyzethe possibility of doing an IPO in the U.S.A. but having finalized certain transactions recently has

decided to incorporate the most recent quarterly numbers while it continues to monitor marketconditions to determine the timing. As is usual and in accordance with good corporate

governance practices, the Company will communicate with the market as relevantinformation becomes available.

Inalca JBS inaugurate new plant in Russia

On 2 February, Inalca JBS, a Company that belongs to JBS S.A. and the Cremonini Group,integrated a new industrial complex on the outskirts of Moscow, which includes a distributionplatform of food and a modern manufacturing plant of hamburger.

With an investment of € 100 million, the complex is one of the largest and most modernprocessing and distribution platforms of food and also a reference in advanced technology.Built in a strategic position in Odinzovo, near Moscow, the complex was constructed in an areaof 25.000m2 and designed by engineers from inside Inalca JBS.

The new Inalca JBS’ production platform in Russia will bring together all activities undertaken by

the subsidiary, MARR Russia. The complex will offer food service activities with over 1,500products to hotels, restaurants and catering, with a customer base of 1.300 and a fleet of 50refrigerated trucks as well as producing food items for the Retail, Wholesale, and other

processing industries.



18


Acquisition of Tatiara Meat Company in Australia

In February 2010, the Company announced the conclusion of the acquisition of Tatiara MeatCompany (TMC) and immediate incorporation of the new asset, after the approval of theacquisition by the Australian Authorities (ACCC - Australian Competition and Consumer Commission), JBS became the leader in the lamb industry in Australia. The purchase agreementwith the Vion Food Group, through JBS subsidiary, Swift Australia, was announced in December

2009.

TMC is a high quality lamb processing business, servicing quality high end markets in the United

States, Canada and Europe. It has a strong brand and quality product reputation both in theinternational and Australian domestic markets. The Company is headquartered in the premium

lamb growing area of Bordertown, South Australia. TMC has annual revenues of approximately

AUD200 million (or US$183 million) and JBS agreed to pay AUD30 million (or US$27.5 million) for the company (Enterprise Value).

JBS finalizes the purchase of a Controlling interest in Pilgrims Pride Corporation

On the 28th of December 2009, JBS S.A., through its subsidiary based in the United States ofAmerica, JBS USA, through the subscription of new shares, became the Pilgrim’s Pride

controlling shareholder by acquiring 64% of the total share capital and voting rights. JBS USApaid US$ 800 million US Dollars in cash. The acquisition followed the legal applicableprocedures and was approved by the bankruptcy court and the anti-trust authorities of that

country.

Since then the Pilgrim’s Pride Corporation shares have been traded in the New York Stock

Exchange (NYSE) under the ticker “PPC”, after being delisted for thirteen must while the

Pilgrim’s Pride Corporation successfully managed its reorganization plan.

Offer to Purchase 9,375% Senior Notes that are due in 2011

JBS S.A. announced an offer to repurchase, during the month of February of 2010, any and all

of its 9.375% Senior Notes that are due in 2011 with an outstanding total of $ 275.000.000(“Notes”). Due to a change of control the offer made pursuant to the Company’s obligations

under the indenture governing the Notes, which requires JBS to make an offer to purchase theNotes following a “Change of Control” (as defined in the indenture governing the Notes). A

“Change of Control” occurred on December 31, 2009 as a result of the Company’s merger

with Bertin S.A., which caused the controlling shareholders to cease to own more than 50% ofthe outstanding voting stock of the Company.

The change of control offer expired at 12:00 midnight, New York City time, on March 1, 2010.



19


STOCK PERFORMANCE (JBSS3)

Source: Bloomberg (Base 100 = 01/01/09)

In the graphs above we can see the stock performance of JBS S.A. in 2009. JBS’ shares went up89.7%, while the Bovespa index rose 64.3% in the same period. As for the S&P 500,the indexclimbed 22,1% in 2009, while JBS share appreciated by 240.8% in USD terms. The average daily

trading volume of JBS increased 86.6% from 3Q09 to 4Q09, from R$15.6 million to R$29.1 million.

JBS shares represented by the JBSS3 ticker make up part of a number of the indexes of the

BM&F Bovespa, such as Ibovespa, IBrX-50, Corporate Governance Index (IGC) as well as TheConsumer Index (ICON). Besides, the Company’s stock is traded in the US through an OTC ADR

(American Depositary Receipt) program under the JBSAY ticker.

ADRs’ traded volume (JBSAY)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Volume Closing Price (U$) Source: JBS

70 90

110 130 150 170 190 210

Jan - 09 Feb - 09 Mar - 09 Apr - 09 May - 09 Jun - 09 Jul - 09 Aug - 09 Sep - 09 Oct - 09 Nov - 09 Dec - 09 JBSS3 IBOV

Stock performance of JBSS3 vs Ibovespa

70 120 170 220 270

Jan - 09 Feb - 09 Mar - 09 abr - 09 mai - 09 jun - 09 jul - 09 ago - 09 set - 09 out - 09 nov - 09 dez - 09 JBSS3 (in US$) S&P 500

Stock performance of JBSS3 vs S & P 500



20


Tables and Charts

Graph I – JBS Consolidated Net Revenue Distribution (in Reais)

Domestic Market

77%

Exports

23%

Revenue Breakdown by Market 2009

Domestic

Market

67%

Exports

33%

Revenue Breakdown by Market 2008

Source: JBS

R evenue Dis tribution by B us iness Unit 2009

Brazil

16%

Argentina

2%

Beef USA

52%

Pork USA

13%

Aus tralia

12%

Italy

5%

R evenue Dis tribution by B us iness Unit 2008

Brazil

18%Argentina

2%

Beef USA

49%

Pork USA

15%

Aus tralia

11%

Italy

5%

Source: JBS

Table I – Breakdown of Production Cost by Business Unit (%)

4Q09 (%) Consolidated JBS Brasil Argentina USA Beef USA Pork Inalca JBS

Raw material (Cattle) 83.7% 84.7% 87.9% 83.4% 77.6% 91.9%

Processing (including ingredients andpackaging)

6.7% 9.3% 4.9% 6.6% 7.8% 2.0%

Labor Cost 9.5% 6.0% 7.2% 10.0% 14.6% 6.1% Source: JBS



21


Graph II – JBS Consolidated Exports Distribution

Japan; 13%

E.U.; 11%

Russia; 10%

Canada; 8%Mexico; 8%

Africa and Middle

East; 7%

South Korea; 6%

Hong Kong; 6%

USA; 5%

China; 4%

Taiwan; 2%

Others; 19%

JBS Exports 12M09

US$ 5.0 Billion

Mexico18%

Russia13%

E.U,11%Japan

9%Canada

8%

Middle East7%

Hong Kong5%

South Korea4%

Taiwan4%

USA3%

China3%

Others15%

JBS Exports 12M08

US$ 5.6 billion

Source: JBS



22


Table II –

Exchange rates to Real (R$)

Currencies 2006 2007 2008 2009 1Q09 2Q09 3Q09 4Q09

Argentinean Peso - ARS

End of period 0.6998 0.5625 0.6774 0.4577 0.6240 0.5141 0.4628 0.4577

Average 0.7081 0.6257 0.5783 0.5385 0.6529 0.5570 0.4880 0.4560

Euro - EUR

End of period 2.8202 2.6086 3.2382 2.5073 3.0783 2.7399 2.6011 2.5073

Average 2.7347 2.6647 2.6734 2.7699 3.0136 2.8261 2.6711 2.5687

American Dollar - USD

End of period 2.1380 1.7713 2.3370 1.7412 2.3152 1.9516 1.7781 1.7412

Average 2.1761 1.9479 1.8346 1.9981 2.3113 2.0748 1.8677 1.7384 Source: Banco Central do Brasil

To obtain the value in local currency, multiply the amount in the currency informed by the respective exchange rate.

Table III - Stockholders

Shareholders Number of Shares %

FB Participações S.A. 1,399,867,018 59.1%

Treasury Shares 43,990,100 1.9%

Shares outstanding

BNDES Participações S.A. - BNDESPAR 437,102,282 18.5%

PROT - FIP 205,365,101 8.7%

Minority shareholders 281,146,975 11.9%

Total shares outstanding 923,614,358 39.0%

TOTAL 2,367,471,476 100.0% Position as of 31/12/2009.



23


INDEX

CONTACTS

Head Office

Avenida Marginal Direita do Tietê, 500CEP: 05118-100 – São Paulo – SP

BrazilPhone: (55 11) 3144-4000

Fax: (55 11) 3144-4279

www.jbs.com.br Investor Relations

Phone: (55 11) 3144-4055

E-mail: [email protected] www.jbs.com.br/ir

http://www.jbs.com.br/


mailto:[email protected]







24


CONSOLIDATED FINANCIAL STATEMENT – JBS S.A.

(In thousands of Reais)

2009 2008 2009 2008

ASSETS

CURRENT ASSETS

Cash and cash equivalents (Note 5) 4,097,027 1,522,973 4,962,519 2,291,617 Trade accounts receivable, net (Note 6) 1,273,377 552,991 3,201,435 2,232,300

Inventories (Note 7) 758,536 539,510 3,732,603 2,549,674 Recoverable taxes (Note 8) 841,306 447,343 1,066,033 623,022 Prepaid expenses 13,233 1,754 131,915 70,881 Other current assets 296,882 166,275 848,754 493,372

TOTAL CURRENT ASSETS 7,280,361 3,230,846 13,943,259 8,260,866

NON-CURRENT ASSETS

Long-term assets

Credits with related parties (Note 9) - 1,700,868 326,974 54,569

Judicial deposits and others 70,640 16,378 645,645 102,779 Deferred income taxes (Note 20) 30,357 22,626 807,526 481,485 Recoverable taxes (Note 8) 550,848 37,632 615,748 65,307

Total long-term assets 651,845 1,777,504 2,395,893 704,140

Investments in subsidiaries (Note 10) 6,492,282 3,803,669 - - Other investments 10 10 3,984 5,722 Property, plant and equipment, net (Note 11) 7,419,579 1,804,833 13,292,503 4,918,671 Intangible assets, net (Note 12) 11,422,348 959,230 12,853,453 2,205,347

Deferred charges - - - 1,603

25,334,219 6,567,742 26,149,940 7,131,343

TOTAL NON-CURRENT ASSETS 25,986,064 8,345,246 28,545,833 7,835,483

TOTAL ASSETS 33,266,425 11,576,092 42,489,092 16,096,349

The accompanying notes are an integral part of the financial statements

JBS S.A.

Balance sheets as of December 31, 2009 and 2008

Company Consolidated



25


2009 2008 2009 2008

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Trade accounts payable ( Note 13) 905,770 383,979 2,525,353 2,077,844 Loans and financings (Note 14) 3,926,390 1,494,690 5,272,083 2,214,788 Payroll, social charges and tax obligation (Note 287,082 62,722 721,855 337,238 Declared dividends (Note 17) 122,953 51,127 122,953 51,127

Debit with third parties for investment (Note 19) 427,523 - 427,523 - Other current liabilities 485,145 76,772 373,167 248,344

TOTAL CURRENT LIABILITIES 6,154,863 2,069,290 9,442,934 4,929,341

NON-CURRENT LIABILITIES

Loans and financings (Note 14) 5,311,023 2,991,344 9,157,729 3,401,709

Convertible debentures (Note 15) 3,462,212 - 3,462,212 -

Deferred income taxes (Note 20) 351,633 83,453 1,539,099 884,927

Provision for contingencies (Note 18) 210,088 48,244 421,880 57,637

Debits with related parties (Note 9) 828,662 - - -

Debit with third parties for investment (Note 19) 162,976 210,480 162,976 210,480 Other non-current liabilities 56,882 38,870 932,922 480,302

TOTAL NON-CURRENT LIABILITIES 10,383,476 3,372,391 15,676,818 5,035,055

MINORITY INTEREST - - 641,254 (2,458)

SHAREHOLDERS' EQUITY (Note 21)

Capital stock 16,483,544 4,495,581 16,483,544 4,495,581 Capital reserve 714,503 769,463 714,503 769,463

Revaluation reserve 112,352 118,178 112,352 118,178

Profit reserves 30,993 1,297 30,993 1,297 Valuation adjustments to shareholders' equity

(914) (2,920) (914) (2,920)

Accumulated translation adjustments (612,392) 752,812 (612,392) 752,812

TOTAL SHAREHOLDERS' EQUITY 16,728,086 6,134,411 16,728,086 6,134,411

TOTAL LIABILITIES AND SHAREHOLDERS' EQU 33,266,425 11,576,092 42,489,092 16,096,349

JBS S.A.

Balance sheets as of December 31, 2009 and 2008




26


(In thousands of Reais)

2009 2008 2009 2008

GROSS OPERATING REVENUESales of productsDomestic sales 3,907,867 2,971,842 27,091,607 20,787,532 Foreign sales 1,859,301 2,424,375 8,103,872 10,318,077

5,767,168 5,396,217 35,195,479 31,105,609

SALES DEDUCTIONS

Returns and discounts (225,768) (206,162) (395,494) (369,178) Sales taxes (392,606) (323,649) (488,179) (396,176)

(618,374) (529,811) (883,673) (765,354)

NET SALE REVENUE 5,148,794 4,866,406 34,311,806 30,340,255

Cost of goods sold (4,170,692) (3,957,624) (31,112,705) (27,347,753)

GROSS INCOME 978,102 908,782 3,199,101 2,992,502

OPERATING INCOME (EXPENSE)

General and administrative expenses (193,241) (137,568) (705,586) (570,147) Selling expenses (486,686) (470,620) (1,562,760) (1,517,591) Financial income (expense), net (Note 22) (534,746) (263,633) (601,118) (612,176) Equity in subsidiaries (Note 10) 385,838 211,876 - - Goodwill amortization - (179,867) - (179,867) Non-recurring expenses - (35,693) - (35,693) Other (expense) income, net 3,433 10,098 10,886 7,731

(825,402) (865,407) (2,858,578) (2,907,743)

NET INCOME BEFORE TAXES 152,700 43,375 340,523 84,759

Current income taxes 3,001 3,336 (49,728) (52,246) Deferred income taxes (26,277) (20,772) (161,953) (9,975)

(23,276) (17,436) (211,681) (62,221)

RESULT BEFORE MINORITY INTEREST 129,424 25,939 128,842 22,538

Minority interest (expense) income - - 582 3,401

NET INCOME PER THOUSAND SHARES 129,424 25,939 129,424 25,939

NET INCOME PER THOUSAND SHARES 56 18

Statement of EBITDA (Earnings before income taxes, interest,

depreciation and amortization)

Net income before taxes 152,700 43,375 340,523 84,759 Financial income (expense), net (Note 22) 534,746 263,633 601,118 612,176 Depreciation and amortization 97,515 71,157 343,591 243,591 Equity in subsidiaries (Note 10) (385,838) (211,876) - - Non-recurring expenses - 35,693 - 35,693 Goodwill amortization - 179,867 - 179,867

AMOUNT OF EBITDA 399,123.00 381,849.00 1,285,232 1,156,086

AMOUNT OF EBITDA Pró- forma (Not audited) - Including PPC and Bertin 1,030,289 381,849 3,057,956 1,156,086

The accompanying notes are an integral part of the financial statements


JBS S.A.

Statements of income for the years ended December 31, 2009 and 2008



27


This release contains forward-looking statements relating to the prospects of the business, estimates for

operating and financial results, and those related to growth prospects of JBS. These are merely

projections and, as such, are based exclusively on the expectations of JBS’ management concerning

the future of the business and its continued access to capital to fund the Company’s business plan. Such

forward-looking statements depend, substantially, on changes in market conditions, government

regulations, competitive pressures, the performance of the Brazilian economy and the industry, among

other factors and risks disclosed in JBS’ filed disclosure documents and are, therefore, subject to change

without prior notice.

Documents

4Q09 Earnings Release