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1
São Paulo, February 19
th
, 2009 ­ JBS S.A. ("JBS") (Bovespa: JBSS3), the world's largest producer and exporter
of beef announces today its results for the twelve months of 2008 (12M08) and its fourth quarter results for
2008 (4
th
quarter 2008). For the purpose of comparison, the results considered in the statement refer to the
quarter ended on 09/30/08 (3rd quarter 2008), 12/31/08 (4th quarter 2008), 12/31/07 (4th quarter 2008)
and the twelve months ended on 12/31/07 (12M07).
The consolidated results of JBS are presented in Reais (R$) and when separately analyzed each business sector
divulges its results in the currency of its respective country. The operations of JBS Australia are an integrated
component of the subsidiary JBS USA and both results refer to the period of 13 weeks to the 4Q08 and 52
weeks to the 12M08, ending December 28, 2008.
In the elaboration of the individual and consolidated financial statements of 2008 the Company adopted, by
the first time, the alterations in the corporate legislation introduced by the Law n° 11.638 approved on
December 28, 2007, with the respective modifications introduced by the Executive Act n° 449, of December 3,
2008.
HIGHLIGHTS
JBS lives an intense process of deleverage reducing the net debt / EBITDA ratio from 3.74x in 2007 to
1.95x in 2008.
Adjusted pro forma net income in 2008 of R$1.05 billion, if adjusted by the exchange variation of
foreign investments and excluded the goodwill amortization.
Net revenue increased 114.5% YoY from R$14.1 billion in 2007 to R$30.3 billion in 2008.
EBITDA YOY increased 95.6% from R$591.1 million in 2007 to R$1,156.1 million in 2008.
Proposed dividend distribution has increased threefold from R$17.5 million in 2007 to R$51.1 million
in 2008.
Integration of the Tasman Group, of Smithfield Beef and the Five Rivers Feedlot grew the global
production platform of JBS as well as increasing penetration in the world market while introducing cost
cutting synergies.
Distribution network of INALCA JBS enhanced the contact with customers in Africa and Eastern Europe.
Proven risk control and management policy preserved the financial health of JBS during a period of
uncertainty and high volatility particularly during the second semester of 2008.
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2
HIGHLIGHTS
R$ million
4Q08
3Q08
%
3Q07
%
12M08
12M07
%
Net Revenue
9.633,2
7.771,5
24,0%
6.650,7
44,8%
30.340,3
14.141,6
114,5%
Cost of Goods Sold
-8.781,8
-6.830,5
28,6%
-6.145,8
42,9% -27.347,8 -12.609,1
116,9%
EBITDA
0,0
0,0
-
0,0
-
0,0
0,0
-
JBS USA Beef (US$)
60,4
155,6
-61,2%
-84,5
-
286,6
-128,2
-
JBS USA Pork (US$)
25,6
52,1
-50,9%
40,5
-36,8%
113,7
88,6
28,2%
INALCA JBS (Euro)
8,3
7,6
8,9%
-
-**
29,9
-
-**
JBS Brasil (R$)
77,9
91,5
-14,9%
194,6
-60,0%
381,8
688,0
-44,5%
JBS Argentina ($ Pesos)
-20,4
19,6
-
7,0
-
-25,9
22,2
-
Consolidated EBITDA
265,9
470,5
-43,5%
94,8
180,5%
1.156,1
591,1
95,6%
EBITDA Margin
2,8%
6,1%
-
1,4%
-
3,8%
4,2%
-
Net financial income*
-238,8
-15,2
-
-84,4
182,9%
-612,2
-403,1
51,9%
Net Income (Loss)
-53,5
270,1
-
-136,1
-60,7%
25,9
-165,0
-
Net Debt/EBITDA
1,95x
2,31x
-
3,74x
-
1,95x
3,74x
-
Profits per Share
-0,04
0,49
-
-0,15
-75,1%
0,02
-0,15
-
* The net financial result and, consequently, net loss were affected by the exchange rate variation on foreign currency investments in the amount of
R$44.0 million for the 4Q07, and R$160.0 million for the 12M07. Exchange variations do not have a cash effect on the Company, and as such, did
not impact the EBITDA for the period. Excluding this effect, the Company would have registered a net loss of R$92.1 million for the 4Q07 and R$5.0
million for the 12M07.
In 2008 the exchange variation rate of the permanent investments in foreign currency is being registered in specific account in the shareholder's equity,
not affecting the results. This modification was recognized only in the 4Q08 with retroactive effect. For comparison purposes, the accounts mentioned
was reclassified in the 3Q08 in the table above.
* *
The INALCA acquisition was concluded in 03/03/2008, so it didn't belong to JBS in the 4Q08 and 12M08.
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3
MESSAGE FROM THE PRESIDENT
In 2008, we advanced our plan to build a sustainable production and distribution global beef platform
through the acquisitions of 50% of Inalca in Italy, the Tasman Group in Australia and Smithfield Beef
(including the Five Rivers feedlot operation) in the USA adding to the acquisition of the Swift Group which
included Swift Australia in 2007.This new structure and our global distribution network strengthens the
presence of JBS in the major beef production countries and protects us against external factors such as
commercial and sanitary restrictions.
We believe that the recovery and the sustainability of income margins already achieved in our recent
acquisitions are further proof of the management capacity and capability of the JBS team. Our capabilities are
based on more than 50 years of experience in the beef industry and this experience serves us well in rapidly
integrating the new operations with focus on best manufacturing practices and an eye for detail, increased
productivity, cost control and risk mitigation resulting in better margins and added value in our product line.
Regardless of little variation in beef consumption over the recent past, the lack of credit has reduced
international trade resulting in significant inventory reductions in importing countries. It is difficult to gauge
when volumes will flow again and, cautiously, over the last number of months we have been preparing JBS to
be ready for a period of uncertainty before we see a recovery of global markets.
The last quarter of 2008 was marked by the reduction in credit and by speculation regarding the force and
scope of the global financial crisis in the real economy. Regardless, we had the opportunity to prove our
solidity and risk management capacity which once again demonstrated strategically opportune financial
stability for our group. Our integrated distribution network in each domestic market served us well at a time
when international trade was instable and uncertain.
Having said that, we believe that 2009 is a year governed by caution. We will continue to maintain our
conservative financial management with a view to maintaining our solid consolidated results with focus on
liquidity and tight financials while being conservative on investments. We will continue to focus on reducing
costs as we further integrate the acquisitions made, increasing productivity, tightly managing working capital
with a view to continue decreasing leverage. Thus, we feel that we will be ready for market adjustments while
being vigilant towards investment opportunities which could add value to our balance sheet.
While we maintain the philosophy of preservation, growth and perpetuation, we continue building our Group
in a simple manner, solid and sustainable either through strategic investments where we see opportunities to
improve income through our experience or through our quest for excellence in everything we do so that we can
continue to be seen as a reference in our business.
We at JBS consider Human Capital our greatest worth and recognize the importance of the efficiency and
dedication of all our more than 55 thousand collaborators for the success of our company. It is only with these
people that we can spread our experience, knowledge and values through all our production and distribution
platforms in 21 countries. We believe that once again, together, we will make the difference, promoting a
relationship based primarily on trust.
Joesley Mendonça Batista
President
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4
STOCK PERFORMANCE (JBSS3)
40
60
80
100
120
140
160
180
200
Jan-08
Feb-08
Mar-08
Apr-08
May-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Stock Performance JBSS3 vs. IBovespa
JBSS3
Ibovespa Index
Pay out of R$
17.5 milllion in
dividends.
1Q08 Earnings
Release.
2Q08 Earnings
Release.
Announcement
of ADR Program.
2Q08 Earnings
Release.
Public Meeting
with Investors.
Announcement of the
Smithfield Beef, National
Beef and Tasman Group
acqusitions and capital
increase of R$ 2.5 billion.
2007 Earnings
Release.
New York
São Paulo
Source: Bloomberg (100 = 01/02/08)
In a year when the management skills of JBS were put to test, the share price of the Company performed
beyond the expectations of the market above the I-Bovespa index. The share performance is an indication that
the market believes in the Company's strategy of diversifying its production base, mitigating risk and reducing
costs in a global scenario where demand for beef is expected to exceed present production trends in the short,
medium and long term.
CORPORATE GOVERNANCE
JBS has embraced a Corporate Governance model with a view to implant the best practices in the Company.
The view is that the model demonstrates transparency and confidence to the public, guaranteeing the best
products and services for customers, solidity for suppliers, satisfactory return for shareholders and the certainty
of a better future for all JBS collaborators.
The commitment of the Company towards an effective Corporate Governance is reflected in the fact that JBS is
listed on the Novo Mercado of the Sao Paulo Stock exchange (Bovespa). This carries the rigorous commitment
of good Corporate Governance practices. At present, besides the Administrative Board of Directors and a
Fiscal Board, JBS also has Audit, Finance, Human resources and Business Strategy Committees.
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5

ANALYSIS OF THE CONSOLIDATED RESULTS
Consolidated analysis of the principal operational indicators of JBS
R$ million
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue
9.633,2
7.771,5
24,0%
6.650,7
44,8%
30.340,3
14.141,6
114,5%
Cost of Goods Sold
-8.781,8
-6.830,5
28,6%
-6.145,8
42,9% -27.347,8 -12.609,1
116,9%
Gross Revenue
851,4
941,0
-9,5%
504,9
68,6%
2.992,5
1.532,5
95,3%
Selling Expenses
-448,3
-402,4
11,4%
-322,6
39,0%
-1.517,6
-786,6
92,9%
General and Adm. Expenses
-227,5
-120,8
88,4%
-126,1
80,4%
-570,1
-275,6
106,9%
Net Financial Income*
-238,8
-15,2
-
-84,4
182,9%
-612,2
-403,1
51,9%
Amortization of Goodwill
-45,7
-44,7
2,1%
-73,6
-37,9%
-179,9
-74,9
140,1%
Non-recurring Expenses
-0,4
-35,7
-98,9%
-14,8
-97,5%
-28,0
-67,1
-58,3%
Operating Income
-109,4
322,2
-
-116,6
-6,2%
84,8
-74,8
-
Non-operating Income
0,0
4,5
-
5,4
-
0,0
11,2
-
Taxes and Social Contribution
53,4
-56,9
-
-24,1
-
-62,2
-104,9
-40,7%
Minority Interest
2,47
0,36
582,0%
-0,70
-
3,40
3,50
-2,8%
Net Income (Loss)
-53,5
270,1
-
-136,0
-60,6%
25,9
-165,0
-
EBITDA
265,9
470,5
-43,5%
94,8
180,5%
1.156,1
591,1
95,6%
EBITDA Margin
2,8%
6,1%
0,0%
1,4%
0,0%
3,8%
4,2%
0,0%
* The net financial result and, consequently, net loss were affected by the exchange rate variation on foreign currency investments in the amount of
R$44.0 million for the 4Q07, and R$160.0 million for the 12M07. Exchange variations do not have a cash effect on the Company, and as such, did
not impact the EBITDA for the period. Excluding this effect, the Company would have registered a net loss of R$92.1 million for the 4Q07 and R$5.0
million for the 12M07.
In 2008 the exchange variation rate of the permanent investments in foreign currency is being registered in specific account in the shareholder's equity,
not affecting the results. This modification was just recognized in the 4Q08 with retroactive effect. For comparison purposes, the account mentioned was
reclassified in the 3Q08 in the table above.
Number of Head Slaughtered and Sales Volume
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Heads Killed (thousand)
Cattle
2,828.0
2,954.4
-4.3%
2,460.2
15.0%
10,436.2
9,176.0
13.7%
Pork
3,337.4
3,124.2
6.8%
3,514.1
-5.0%
12,576.3
12,071.9
4.2%
Smalls
712.7
528.8
34.8%
152.1
368.5%
1,759.6
561.9
213.1%
Volume Sold (thousand tons)
Domestic Market
1,343.2
1,148.4
17.0%
1,094.4
22.7%
4,464.9
3,903.6
14.4%
Fresh and Chilled Beef
1,219.9
991.1
23.1%
960.7
27.0%
3,942.4
3,374.2
16.8%
Processed Beef
31.6
31.2
1.3%
33.2
-4.9%
124.5
125.1
-0.5%
Others
91.7
126.1
-27.3%
100.5
-8.7%
398.1
404.3
-1.5%
Exports
418.7
453.5
-7.7%
420.2
-0.4%
1,666.1
1,467.2
13.6%
Fresh and Chilled Beef
392.9
429.3
-8.5%
392.1
0.2%
1,566.2
1,349.2
16.1%
Processed Beef
25.8
24.2
6.5%
28.0
99.9
118.0
-15.4%
TOTAL
1,761.9
1,601.8
10.0%
1,514.6
16.3%
6,131.0
5,370.7
14.2%
JBS ends 2008 in line with its annual historic growth, with a net revenue of R$30.3 billion, 114.5% higher than
the previous year, and EBITDA of R$1.2 billion, 95.6% higher than 2007.
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6
Considering the factors during 2008, such as the reduction in exports from Brazil to the European Union and
the export restrictions in Argentina during the first semester as well as credits facilities restrictions, necessary for
the international trade during the second semester, the maintenance of the EBITDA margin around 4%
confirms the solidity and management capability of JBS.
94.8
176.3
290.8
470.5
265.9
2.8%
4.1%
6.1%
3.0%
1.4%
4Q07
1Q08
2Q08
3Q08
4Q08
9,633.2
7,771.5
6,650.7
5,859.1
7,129.5
4Q07
1Q08
2Q08
3Q08
4Q08
Source JBS
EBITDA Margin (%)
Debt
R$ Million
12/31/08
09/30/2008
Var.%
Total Net Debt
3.324,9
2.496,0
33,2%
Cash and Marketable Secuirites
2.291,6
2.255,6
1,6%
Short term
2.214,8
1.949,9
13,6%
Long term
3.401,7
2.801,7
21,4%
Total Debt
5.616,5
4.751,6
18,2%
Net Debt/EBITDA*
1.95x
2.31x
* Last 12 months till 12/2008
The JBS debt is made up primarily of working capital credit lines and by notes (Reg.S and 144A) amounting to
the total face value of U$575 million with expiry in 2011 and 2016, U$275 million of which issued at an
annual interest rate of 9,375%, payable quarterly and U$300 million at an annual interest rate of 10.50%
payable biannually.
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7
Short Term Debt Detailed
The Administration of the Company is secure that even if the present financial crisis has not abated, the
Company will not have difficulties in refinancing its short term debt and believes that in the final analysis there
will be a possible increase in the cost of the debt.
JBS S.A. Consolidated (R$ million)
1Q09 2Q09 3Q09 4Q09
Total
%**
1Q09
2Q09
3Q09
4Q09
Financing for purchase of fixed assets
FINAME / FINEM - Enterprise financing
11
11
11
59
91
100%
11
11
11
59
Notes Payable
1 1 1 2
5
100% 1 1 1 2
Subtotal 1
12
12
11
61
96
100%
12
12
11
61
Loans for working capital purposes
ACC - Exchange advance contracts
214
322
150
29
715
0% - - - -
EXIM - BNDES export credit facility
72
0
0
0
72
100% 72 - - -
Fixed Rate Notes with final maturity in February 2011
9 - - -
9
100%
9 - - -
Working Capital - American Dollars *
33
71
0
0
104
0% - - - -
Working Capital - Australian Dollars
86 74
0 -
160
0% - - - -
Working Capital - Euros ***
1 11
2 288
302
0% - - - -
Working Capital - Reais
51 - - -
51
0% - - - -
Export prepayment
160
16
16
16
208
0% - - - -
Fixed Rate Notes with final maturity February 2016 (144-A)
- 30 - -
30
100% - 30 - -
NCE / COMPROR
330 - 100
37
467
0% - - - -
Subtotal 2
957
524
268
371
2.119
5%
81
30
0
0
Total
969
536
279
431
2.215
9%
93
42
11
61
Amortization of Short Term Debt
2.215
Cash, cash equivalents and Short-term investments 12/31/2008
2.292
2.199 2.157 2.145 2.085
Working Capital
2.704
Short Term Debt
Probable Scenario
Short Term Debt
207
* Including Finimp
** Percentual to be paid in the period.
*** Working Capital due short term and automatically renewable.
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8
Leverage
The replacement of 4Q07 numbers by 4Q08, which showed substantial improvement added to the increase in
the value of the US dollar has improved the financial leverage of the Company, representing a reduction of
approximately 0.35 in the net debt/EBITDA ratio.
The relation between net debt and EBITDA (last 12 months pro-forma) is negatively impacted due to weak
results in the first quarter of 2008. The probability of better results in the first quarter of 2009 will result in a
significant reduction in the net debt/EBITDA ratio.
2.77
3.74
2.31
1.95
2.89
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
Net Debt = R$ 3,325 MM
EBITDA pro forma = R$ 1,706 MM
=
1,95
Source: JBS
*Last twelve months including Smithfield Beef pro-forma.
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9
Variation in the exchange rates of the permanent investments in foreign currency and goodwill amortization

The consolidated results are influenced by accounting standards which represents exchange rate on
investments in foreign currency and amortization of goodwill in the purchase of JBS USA and SB Holding, Inc.
In 2008, the Company adopted by the first time the alterations in the corporate legislation introduced by the
Law n° 11.638 approved on December 28, 2007 and the exchange variation of permanent investments in
foreign currency is being registered in specific account in the shareholder's equity, without impact the results.
The Company's consolidated financial statement was impacted positively by a pro forma profit (net profit +
goodwill amortization of investments + exchange variation of investments abroad) in the amount of R$1,05
billion.
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10
Capital Expenditure
The total amount of JBS capital expenditure property, plant and equipment, not including acquisitions, was R$
394.7 million in 4Q08, and in the 2008 consolidated was R$994.1 million.
Below, find the relevant investments made by the Company in 4Q08 that are added to others as, acquisition
of new equipment and maintenance of production facilities.
JBS USA ­ Beef Business Unit
Investments were made in the plants of Grand Island, Dumas and Greeley in improvements on the processing
of by-products, on refrigeration structure, on equipments to gain efficiency on the deboning system.
JBS USA ­ Pork Business Unit
In the USA Pork Business Unit the Company made investments in the plants of Marshalltown, Louisville e
Worthington in pork deboning system that utilizes carbon gas, in their casing plant, in improvements to
generate production efficiency gains and equipments in the packaging area to customized products
preparation.
JBS Australia
In Austrália investments were made in the Dinmore, Beef City and Rockhampton, on refrigeration systems, on
offal processing and in the maintenance areas.
INALCA JBS
INALCA JBS made investments in the units in Odinzovo (Moscou, Rússia), Ospedaletto, Gazoldo Degli Ippoliti
and Busseto, in its activities of food-service, increasing the slicing and production capacity of ham and cured
meat items.
There were also investments in distribution centers in Piacenza, Angola (Luanda) and Democratic Republic of
Congo (Kinshasa) for logistic facilities to increase storage capacity.
JBS Brasil
In Brazil the investments in the units in Barra do Garças (MT), Campo Grande (MS), Vilhena (RO) and
Maringá (PR) to increasing the slaughtering and deboning capacity remain.
Other investments were made in the units in Maringá (PR), Anápolis (GO), Goiânia (GO) and Araputanga
(MT), increasing its refrigeration structure, freezing systems and storage capacity.
JBS Argentina
The increasing in the freezing capacity of its distribution center of Pilar, and in the production capacity of
sausages and hamburgers of Rosário and Ponte Vedra were made.
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11
Shareholders Structure
Shareholders
Number of Shares
%
J & F Participações S.A.
632,781,603
44.0%
ZMF Fundo de Investimentos em Participações
87,903,348
6.1%
Shares in Treasury
34,226,200
2.4%
Free Float
BNDES Participações S.A. - BNDESPAR
186,891,800
13.0%
PROT - FIP
205,365,101
14.3%
Minority Stockholders
290,910,874
20.2%
Total of free float
683,167,775
47.5%
TOTAL
1,438,078,926
100.0%
Position in 12/31/2008.
Dividends Payment
The Company, considering that it has generate positive EBITDA, deliberated that for the dividends calculation
base, the goodwill in investments acquisition of JBS USA and SB Holdings will be permanently excluded.
Based on the above, the Company declared dividends of R$ 51,1 million (R$ 17,5 million in 2007), that will
be submitted to the General Assembly of the Shareholders for approval, as calculation demonstrated below:
R$ thousand
2008
Net income (Loss) of the year
25,939
Mandatory reserve (5%)
(1,297)
Investments amortization - JBS USA
175,522
Investments amortization - SB Holdings
4,345
Adjusted base for dividens calculation:
204,509
Declared dividends (25%)
51,127
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12
ANALYSIS OF RESULTS BY BUSINESS UNIT
The Beef Business Unit of JBS USA (including JBS Australia)
The beef business unit of JBS USA, the main revenue generator of the Company that represents 47% of the
total annual revenue, increased its revenue by 22.7% compared with the same quarter on the previous year,
from US$2,273.2 million in the 4Q07 to US$2,789.6 million in the 4Q08, reflected by a increase in sales
volume generated from the Tasman Group and JBS Packerland acquisitions.
EBITDA Margin increased from -3.7% in the 4Q07 to 2.2% in the 4Q08, which confirms the margin
recuperation expected for the year. It is important to consider that the analyzed period in 2008 has one week
less than the same period in 2007.
The EBITDA margin was jeopardized in the last quarter because an expected increase in the operational
expenses related to the recent acquisitions and the Australian dollar depreciation, the currency under JBS
Australia carried its costs, against the American dollar, the currency from which it obtained a major portion of
its revenues.
YoY, the EBITDA margin moved from -1.7% in 2007 to 2.9% in 2008. This is a result of a sales mix
improvement, identification and distribution of certain products to markets with higher prices, production costs
reductions and an increment in operational efficiencies.
Comparing 4Q08 over 3Q08 is difficult because Companies in this sector due to increased fixed costs as a
result of less cattle availability in the winter periods allied with decreased demand. Due to this JBS USA beef
business unit presented an EBITDA margin of 2.2% but maintained its full year 2008 EBITDA margin at the
expected level of 3.0%.
Financial Highlights
US$ million
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Heads Killed (thousand)
1,922.5
1,680.2
14.4%
1,601.8
20.0%
6,769.9
5,555.0
21.9%
Net Revenue
2,789.6
2,755.8
1.2%
2,273.2
22.7%
9,924.8
7,661.8
29.5%
EBITDA
60.4
155.6
-61.2%
-84.5
-
286.6
-128.2
-
EBITDA Margin %
2.2%
5.6%
-
-3.7%
-
2.9%
-1.7%
-
Breakdown of the Net Revenue
Domestic Market
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million US$)
2,113.1
1,875.3
12.7%
1,589.9
32.9%
7,047.2
5,505.7
28.0%
Volume (thousand tons)
783.4
575.0
36.3%
569.4
37.6%
2,452.3
1,939.9
26.4%
Average Price (US$/Kg)
2.70
3.26
-17.3%
2.79
-3.4%
2.87
2.84
1.3%
Exports
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million US$)
676.5
880.5
-23.2%
683.3
-1.0%
2,877.6
2,156.1
33.5%
Volume (thousand tons)
293.8
281.8
4.3%
261.6
12.3%
1,107.0
887.2
24.8%
Average Price (US$/Kg)
2.30
3.12
-26.3%
2.61
-11.8%
2.60
2.43
7.0%
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13
The Pork Business Unit of JBS USA
For the JBS pork business unit, net revenue increased 6.1% from 2007 to 2008, reflecting an increase in
volume combined with an increase in sales prices. In the same period EBITDA increased 28.2% reflecting
improved sales margins, lower costs with packaging, supplies, maintenance, professional fees contract services
and temporary labor.
In the 4th quarter 2008, when comparing to the same period of 2007, a reduction in sales volume offset by
an increase in the average sales price that resulted in 0.4% increment in net revenue. It is important to
consider that the analyzed period in 2008 has one week less than the same period in 2007.
Comparing 4Q08 to 3Q08, net revenues decreased 12.0% because an increase in production volume in the
current quarter coupled with a decrease in selling prices driven primarily by a drop on credit items and an
increase in default in payments partially attributable to the weakening US economy.
In the same period, EBITDA reduced from US$52.1 million to US$25.6 million resulted from a decrease in
average selling prices. Hog costs were negatively impacted by relatively unfavorable hog contracts during the
fourth quarter as compared to the third quarter.
Financial Highlights
US$ million
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Animals Killed (thousand)
3,337.4
3,124.2
6.8%
3,514.1
-5.0%
12,576.3
12,071.9
4.2%
Net Revenue
600.5
682.2
-12.0%
598.2
0.4%
2,438.1
2,297.8
6.1%
EBITDA
25.6
52.1
-50.9%
40.5
-36.8%
113.7
88.6
28.2%
EBITDA Margin %
4.3%
7.6%
-
6.8%
-
4.7%
3.9%
-
Breakdown of the Net Revenue
Domestic Market
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million US$)
507.9
576.9
-12.0%
510.7
-0.6%
2,047.1
2,007.1
2.0%
Volume (thousand tons)
294.1
268.9
9.4%
310.9
-5.4%
1,105.1
1,084.7
1.9%
Average Price (US$/Kg)
1.73
2.15
-19.5%
1.64
5.1%
1.85
1.85
0.1%
Exports
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million US$)
92.6
105.3
-12.1%
87.5
5.8%
391.0
290.6
34.5%
Volume (thousand tons)
40.1
41.8
-4.1%
45.6
-12.0%
179.2
144.0
24.4%
Average Price (US$/Kg)
2.31
2.52
-8.3%
1.92
20.3%
2.18
2.02
8.1%
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14
The INALCA JBS Business Unit
Revenue in 4Q08 compared to the 3Q07 increased 13.5%. Beef Italian companies segment contributed to
this performance with an increase of 16.0%; Cured Meat business had a decrease of 10.0% (it is a normal
seasonality sales behavior. The second and third quarters are the best for this segment); INALCA JBS foreign
companies segment had an increase of 23.0%, mainly in Russia, Angola and Congo.
For the same period EBITDA increase 8.9% in absolute value against the 3Q08. Margin EBITDA had a
minimal reduction of 0.2% linked to mix of products sold and the participation sales fluctuation amongst the
different production units of INALCA JBS.
Financial Highlights
million
4Q08
3Q08
%
Heads Killed (thousand)
118.8
119.9
-0.9%
Net Revenue
162.3
143.1
13.5%
EBITDA
8.3
7.6
8.9%
EBITDA Margin %
5.1%
5.3%
-
Breakdown of the Net Revenue
Domestic Market
4Q08
3Q08
%
Net Revenue (million )
123.3
99.1
24.4%
Volume (thousand tons)
30.9
24.4
26.6%
Average Price (/Kg)
3.99
4.06
-1.7%
Exports
4Q08
3Q08
%
Net Revenue (million )
39.0
44.0
-11.3%
Volume (thousand tons)
12.8
13.3
-3.9%
Average Price (/Kg)
3.05
3.30
-7.7%
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15
JBS Brasil Business Unit
Due to a lack of credit, exports diminished in the period. There were also some renegotiations of international
contracts in the second semester partially compensated by the strong domestic consumption. The devaluation
of the Real and the solid domestic consumption were sufficient to cause an increase in the EBITDA margin in
the period to 6.3%.
The net revenue dropped when comparing 4Q08 with 3Q08 impacted by the same facts due to seasonality
and due to reduced exports all of which is a reflection of reduced cattle availability typical of the period. There
was also an anticipation of kills in 3Q08.
Financial Highlights
R$ million
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Heads Killed (thousand)
631.5
914.7
-31.0%
720.5
-12.3%
3,057.7
3,147.0
-2.8%
Net Revenue
1,242.8
1,465.6
-15.2%
1,072.1
15.9%
4,866.4
3,995.8
21.8%
EBITDA
77.9
91.5
-14.9%
194.6
-60.0%
381.8
688.0
-44.5%
EBITDA Margin %
6.3%
6.2%
-
18.2%
-
7.8%
17.2%
-

Breakdown of the Net Revenue
Domestic Market
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million R$)
Fresh and Chilled Beef
565.0
577.2
-2.1%
313.9
80.0%
1,790.4
1,113.2
60.8%
Processed Beef
54.5
55.6
-2.0%
39.0
39.7%
216.9
166.8
30.0%
Others
107.1
144.1
-25.7%
122.1
-12.3%
527.3
494.7
6.6%
TOTAL
726.6
776.9
-6.5%
475.0
53.0%
2,534.6
1,774.7
42.8%
Volume (thousand tons)
Fresh and Chilled Beef
100.1
112.9
-11.3%
75.8
32.1%
350.5
335.3
4.5%
Processed Beef
23.9
23.2
3.0%
26.0
-7.9%
94.1
99.6
-5.5%
Others
70.7
95.5
-26.0%
83.4
-15.3%
318.5
347.8
-8.4%
TOTAL
194.7
231.6
-15.9%
185.3
5.1%
763.1
782.7
-2.5%
Average Price (R$/Kg)
Fresh and Chilled Beef
5.6
5.1
10.3%
4.1
36.3%
5.1
3.3
53.9%
Processed Beef
2.3
2.4
-4.9%
1.5
51.7%
2.3
1.7
37.7%
Others
1.5
1.5
0.5%
1.5
3.6%
1.7
1.4
16.4%
TOTAL
3.7
3.4
11.2%
2.6
45.5%
3.3
2.3
46.5%
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16

Breakdown of the Net Revenue

Exports
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million R$)
Fresh and Chilled Beef
364.4
593.4
-38.6%
499.0
-27.0%
1,857.6
1,770.0
4.9%
Processed Beef
151.8
95.3
59.3%
98.0
54.9%
474.1
451.1
5.1%
TOTAL
516.2
688.7
-25.0%
597.0
-13.5%
2,331.7
2,221.1
5.0%
Volume (thousand tons)
Fresh and Chilled Beef
43.4
88.0
-50.7%
79.7
-45.6%
268.3
305.7
-12.2%
Processed Beef
16.8
13.9
21.1%
21.2
-20.8%
71.8
90.6
-20.8%
TOTAL
60.2
101.9
-40.9%
101.0
-40.4%
340.1
396.3
-14.2%
Average Price (R$/Kg)
Fresh and Chilled Beef
8.4
6.7
24.6%
6.3
34.3%
6.9
5.8
19.6%
Processed Beef
9.0
6.9
31.5%
4.6
95.7%
6.6
5.0
32.7%
TOTAL
8.6
6.8
26.9%
5.9
45.1%
6.9
5.6
22.3%
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17
JBS Argentina Business Unit
The JBS Argentina business unit underperformed in 4Q08 when compared with the previous quarter mainly
due to limited exports and some contract defaults on the international market as a result of limited credit. This
caused an EBITDA margin drop from 5.1% to -6.0%.
For the same reasons, the net revenue reduced from $388.3 million of Pesos in 3Q08 to $341.2 million of
Pesos in 4Q08.
On an annual basis, net revenue at JBS Argentina increased 59.7% from $729.8 million of Pesos to $1.165.3
million of Pesos as a result of the incorporation of new production units and taking into consideration the good
performance in 3Q08 when compared with the same quarter the previous year.
Financial Highlights
$ Argentinean Pesos million
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Heads Killed (thousand)
155.2
239.7
-35.2%
137.9
12.6%
608.6
474.1
28.4%
Net Revenue
341.2
388.3
-12.1%
218.5
56.2%
1,165.3
729.8
59.7%
EBITDA
-20.4
19.6
-
7.0
-
-25.9
22.2
-
EBITDA Margin %
-6.0%
5.1%
-
3.2%
-
-2.2%
3.0%
-
Breakdown of the Net Revenue
Domestic Market
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million Argentinean Pesos)
Fresh and Chilled Beef
65,8
55,2
19,3%
26,5
148,2%
213,4
77,7
174,4%
Processed Beef
48,9
50,4
-3,1%
39,8
22,7%
193,3
140,6
37,6%
Others
14,3
35,9
-60,2%
19,8
-27,6%
91,3
71,3
28,1%
TOTAL
129,0
141,4
-8,8%
86,1
49,8%
498,1
289,6
72,0%
Volume (thousand tons)
0
0
0,0%
0
0
0
0
0,0%
Fresh and Chilled Beef
11,4
10,0
13,9%
4,6
146,4%
34,4
14,2
142,5%
Processed Beef
7,7
7,9
-3,7%
7,2
6,0%
30,5
25,6
19,1%
Others
21,0
30,6
-31,2%
17,0
23,7%
79,6
56,5
40,8%
TOTAL
40,1
48,5
-17,4%
28,8
38,9%
144,4
96,3
50,1%
Average Price (Pesos/Kg)
0
0
0,0%
0
0
0
0
0,0%
Fresh and Chilled Beef
5,79
5,53
4,8%
5,8
0,7%
6,2
5,5
13,2%
Processed Beef
6,39
6,34
0,6%
5,5
15,8%
6,3
5,5
15,4%
Others
0,68
1,17
-42,1%
1,2
-41,5%
1,1
1,3
0,0%
TOTAL
3,2
2,9
10,5%
3,0
7,9%
3,4
3,0
14,6%
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18
Breakdown of the Net Revenue (JBS Argentina)
Exports
4Q08
3Q08
%
4Q07
%
12M08
12M07
%
Net Revenue (million Argentinean Pesos)
Fresh and Chilled Beef
59,4
91,1
-34,9%
55,2
7,5%
236,6
149,3
58,5%
Processed Beef
130,6
136,8
-4,5%
66,2
97,2%
368,4
257,3
43,2%
Others
22,2
19,0
17,2%
11,0
102,9%
62,3
33,6
85,4%
TOTAL
212,2
246,9
-14,0%
132,4
60,3%
667,3
440,1
51,6%
Volume (thousand tons)
0
0
0,0%
0
0
0
0
0,0%
Fresh and Chilled Beef
2,7
4,3
-35,9%
5,2
-47,0%
11,7
12,3
-4,6%
Processed Beef
9,0
10,3
-13,1%
6,8
32,1%
28,1
27,4
2,5%
Others
3,7
3,6
0,6%
3,6
3,0%
11,8
12,0
-1,3%
TOTAL
15,4
18,3
-15,7%
15,6
-1,0%
51,6
51,6
-0,1%
Average Price (Pesos/Kg)
0
0
0,0%
0
0
0
0
0,0%
Fresh and Chilled Beef
21,6
21,3
1,7%
10,6
103,1%
20,2
12,2
66,1%
Processed Beef
14,5
13,2
9,9%
9,7
49,3%
13,1
9,4
39,7%
Others
6,1
5,2
16,5%
3,1
97,0%
5,3
2,8
0,0%
TOTAL
13,8
13,5
2,0%
8,5
61,9%
12,9
8,5
51,7%
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19
TABLES AND CHARTS
Graph I ­ JBS Consolidated Gross Revenue Distribution 12M08
Domestic
Market
68%
Exports
32%
Revenue Distribution by Market 12M08
Beef Italy
5%
Beef Argentina
3%
Beef Brazil
19%
Beef USA
47%
Pork USA
14%
Beef Australia
12%
Revenue Distribution by Business Units 12M08
Source: JBS
Graph II ­ JBS Consolidated Exports Distribution 12M08
Mexico
18%
Russia
13%
E.U,
11%
Japan
9%
Canada
8%
Middle East
7%
Hong Kong
5%
South Korea
4%
Taiwan
4%
USA
3%
China
3%
Others
15%
JBS Exports 12M08
US$ 5.6 billion
Source: JBS
Graph III ­ Breakdown of the Production Costs by Business Units (%)
12M08 (%)
Consolidated
JBS Brasil
Argentina
USA Beef
USA Pork
Inalca JBS
Raw material (Cattle)
86.0%
87.1%
82.5%
86.5%
80.5%
89.9%
Processing (including ingredients and
packaging)
6.2%
7.7%
13.0%
5.7%
7.4%
2.4%
Labor Cost
7.7%
5.3%
4.5%
7.8%
12.1%
7.7%
Source: JBS
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20
CONTACTS












Head Office
Avenida Marginal Direita do Tietê, 500
CEP: 05118-100 ­ São Paulo ­ SP
Brasil
Phone: (55 11) 3144-4000
Fax: (55 11) 3144-4279
www.jbs.com.br
Investor Relations
Phone: (55 11) 3144-4055
E-mail: ir@jbs.com.br
www.jbs.com.br/ir
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21
FINANCIAL STATEMENT ­ JBS S.A. CONSOLIDATED
(In thousands of Reais)
2008
2007
2008
2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents
1.522.973
869.784
2.291.617
1.381.703
Trade accounts receivable, net
552.991
444.218
2.232.300
1.236.148
Inventories
539.510
604.225
2.549.674
1.511.595
Recoverable taxes
447.343
351.677
623.022
482.918
Prepaid expenses
1.754
4.388
70.881
44.468
Other current assets
166.275
30.612
493.372
102.910
TOTAL CURRENT ASSETS
3.230.846
2.304.904
8.260.866
4.759.742
NON-CURRENT ASSETS
Long-term assets
Credits with related parties
1.700.868
60.306
54.569
17.461
Judicial deposits and others
16.378
8.249
102.779
41.443
Deferred income taxes
22.626
16.251
481.485
23.758
Recoverable taxes
37.632
31.442
65.307
44.205
Total long-term assets
1.777.504
116.248
704.140
126.867
Permanent assets
Investments in subsidiaries
3.803.669
2.149.919
-
829.975
Other investments
10
10
5.722
10
Property, plant and equipment, net
1.804.833
1.328.015
4.918.671
2.536.098
Intangible assets, net
959.230
9.615
2.205.347
193.917
Deferred charges
-
-
1.603
1.596
Total Permanent assets
6.567.742
3.487.559
7.131.343
3.561.596
TOTAL NON-CURRENT ASSETS
8.345.246
3.603.807
7.835.483
3.688.463
TOTAL ASSETS
11.576.092
5.908.711
16.096.349
8.448.205
JBS S.A.
Balance sheets as of December 31, 2008 and 2007
Company
Consolidated
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22
(In thousands of Reais)
2008
2007
2008
2007
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable
383.979
355.510
2.077.844
1.099.385
Loans and financings
1.494.690
858.975
2.214.788
2.384.836
Payroll, social charges and tax obligation
62.722
93.158
337.238
203.613
Declared dividends
51.127
17.465
51.127
17.465
Other current liabilities
76.772
50.294
248.344
70.536
TOTAL CURRENT LIABILITIES
2.069.290
1.375.402
4.929.341
3.775.835
NON-CURRENT LIABILITIES
Loans and financings
2.991.344
1.341.313
3.401.709
1.364.800
Deferred income taxes
83.453
59.642
884.927
99.755
Provision for contingencies
48.244
45.979
57.637
55.681
Debit with third parties for investment
210.480
-
210.480
-
Other non-current liabilities
38.870
31.787
480.302
101.702
TOTAL NON-CURRENT LIABILITIES
3.372.391
1.478.721
5.035.055
1.621.938
MINORITY INTEREST
-
-
(2.458)
(4.156)
SHAREHOLDERS' EQUITY
Capital stock
4.495.581
1.945.581
4.495.581
1.945.581
Capital reserve
769.463
985.664
769.463
985.664
Revaluation reserve
118.178
123.343
118.178
123.343
Profit reseve
1.297
-
1.297
-
Valuation adjustments of shareholders´
equity
(2.920)
-
(2.920)
-
Accumulated
exchange
conversion
adjustments
752.812
-
752.812
-
TOTAL SHAREHOLDERS' EQUITY
6.134.411
3.054.588
6.134.411
3.054.588
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
11.576.092
5.908.711
16.096.349
8.448.205
JBS S.A.
Balance sheets as of December 31, 2008 and 2007
Company
Consolidated
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23
(In thousands of Reais)
2008
2007
2008
2007
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
2.971.842
2.118.600
20.787.532
8.974.879
Foreign Sales
2.424.375
2.321.456
10.318.077
5.752.224
5.396.217
4.440.056
31.105.609
14.727.103
SALES DEDUCTIONS
Returns and discounts
(206.162)
(191.932)
(369.178)
(273.556)
Sales taxes
(323.649)
(252.282)
(396.176)
(311.976)
(529.811)
(444.214)
(765.354)
(585.532)
NET SALE REVENUE
4.866.406
3.995.842
30.340.255
14.141.571
Cost of goods sold
(3.957.624)
(2.915.674)
(27.347.753)
(12.609.093)
GROSS INCOME
908.782
1.080.168
2.992.502
1.532.478
OPERATING INCOME (EXPENSE)
General and administrative expenses
(137.568)
(74.188)
(570.147)
(275.594)
Selling expenses
(470.620)
(374.469)
(1.517.591)
(786.630)
Financial income (expense), net
(263.633)
(276.283)
(612.176)
(403.113)
Equity in subsidiaries
211.876
(276.591)
-
-
Goodwill amortization
(179.867)
(74.824)
(179.867)
(74.853)
Non-recurring expenses
(35.693)
(67.082)
(35.693)
(67.082)
Other (expense) income, net
10.098
(171)
7.731
11.206
(865.407)
(1.143.608)
(2.907.743)
(1.596.066)
INCOME (LOSS) BEFORE TAXES
43.375
(63.440)
84.759
(63.588)
Current income taxes
3.336
(101.793)
(52.246)
(107.104)
Deferred income taxes
(20.772)
201
(9.975)
2.201
(17.436)
(101.592)
(62.221)
(104.903)
INCOME (LOSS) BEFORE MINORITY INTEREST
25.939
(165.032)
22.538
(168.491)
Minority interest (expense) income
-
-
3.401
3.459
NET INCOME (LOSS)
25.939
(165.032)
25.939
(165.032)
NET INCOME (LOSS) PER THOUSAND SHARES
18
(153)
Statement of EBITDA (Earnings before income taxes, interest,
depreciation and amortization and non-operating income
(expense), net
Income (loss) before taxes
43.375
(63.440)
84.759
(63.588)
Financial income (expense), net
263.633
276.283
612.176
403.113
Depreciation and amortization
71.157
56.626
243.591
120.807
Equity in subsidiaries
(211.876)
276.591
-
-
Non-recurring expenses
35.693
67.082
35.693
67.082
Goodwill Amortization
179.867
74.824
179.867
74.853
AMOUNT OF EBITDA
381.849,00
687.966,00
1.156.086
602.267
Company
Consolidated
JBS S.A.
Statements of income for the years ended December 31, 2008 and 2007
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24
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.