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1
IR Contact:
Sérgio Longo
Finance and IR Director
Rodrigo Gagliardi
IR Manager
Email: ir@jbs.com.br
Phone: +55 11 3144-4055
Website:
www.jbs.com.br
12M07 Conference Call
Date: Monday, March 31,
2008
> Portuguese
09h00 (Brasília)
08h00 (US EST)
Phone: +55 (11) 2188-0188
Code: JBS

> English
11h00 (Brasília)
10h00 (US EST)
Phone: +1 (973) 935-8893
Code: 39971093
JBS S.A. reports consolidated results for 2007

São Paulo, March 28, 2008 ­ JBS S.A. ("JBS") (Bovespa: JBSS3), the world's largest beef producer
and exporter, today announces its results for the twelve months of 2007 (12M07).
The financial and
operating information herein is presented on a consolidated basis in BR GAAP and in Brazilian real
(R$). For the purpose of comparison, the results considered in the statement refer to the quarter
ended on 12/31/07 (4Q07), 12/31/06 (4Q06) and the twelve months ended on 12/31/06 (12M06).
The accounting statements for the quarter and year ended December 31, 2006, presented for the
purpose of comparison, were prepared excluding the result of the operations from the Hygiene and
Cleaning division due to the partial spin-off carried out on December 31, 2006, as described in the
explanatory notes. Accordingly, the accounting statements are referred to as "pro-forma" and should
not be used as the basis for dividend calculations or for any corporate purpose other than to provide
comparable information on the Company's operating performance.

The consolidated information and statements presented in this report also include the results of JBS
USA, Inc. ("JBS USA"), including the Australian operations, formerly Swift Foods Company ("Swift"),
which was acquired on July 11, 2007. The results of JBS USA presented herein consider the 173-day
period from July 11 to December 30, 2007.

JBS' net revenue increased 256.4%, from R$3,967.6 million in 2006
to R$14,141.6 million in 2007.
The Company's EBITDA margin in 2007 was 4.18%, comprised by
the 14.2% margin of JBS MERCOSUL and -1.1% margin of JBS USA;
In the 4Q07, JBS MERCOSUL's EBITDA margin was 15.1%.
The pork division in JBS USA in the 4Q07 returned its highest
EBITDA margin in the past 5 years: 6.8%.
In the 4Q07, EBITDA margin of JBS Australia was 3.4%, the second
highest EBITDA in the past 5 years.
The company's results were negatively impacted by the exchange
variation on investments made in the foreign subsidiaries.
The acquisitions described in the "Recent Events" section, allied with
the positive atmosphere in the global beef trade and the improved
margins in the USA in 2008, create a positive environment for JBS to
achieve positive results this year.


HIGHLIGHTS
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2
CONSOLIDATED INCOME STATEMENT ­ 4Q07
Consolidated Income Statement
The table below shows the consolidated results of JBS in BR GAAP and in Brazilian real (R$), including
the results of its U.S. subsidiary JBS USA, which includes its Australia operations, for the 173-day
period from its acquisition on July 11, 2007. The results of JBS USA are divided into two periods, from
07/11/2007 to 09/23/2007 which are included in the 3Q07, and 09/24/2007 to 12/30/2007, which are
included in the 4Q07.
R$ million
4Q07
%
4Q06**
%
3Q07
%
12M07
%
12M06**
%
Net Sales Revenue
6,650.7
100.0%
911.0
100.0%
5,233.6
100.0%
14,141.6
100.0%
3,967.6
100.0%
Cost of Goods Sold
-6,145.8
-92.4%
-707.6
-77.7%
-4,744.5
-90.7%
-12,609.1
-89.2%
-3,036.7
-76.5%
Gross Margin
504.9
7.6%
203.3
22.3%
489.1
9.3%
1,532.5
10.8%
930.9
23.5%
Selling Expenses
-322.6
-4.9%
-74.9
-8.2%
-257.5
-4.9%
-786.6
-5.6%
-347.3
-8.8%
General and Adm. Expenses
-126.2
-1.9%
-29.5
-3.2%
-101.0
-1.9%
-275.6
-1.9%
-105.5
-2.7%
Net Financial Income*
-84.4
-1.3%
-0.7
-0.1%
-189.0
-3.6%
-403.1
-2.9%
-204.1
-5.1%
Equity in Subsidiaries
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Amortization of Goodwill
-73.6
-1.1%
0.0
0.0%
-0.4
0.0%
-74.9
-0.5%
0.0
0.0%
Non-recurring Expenses
-14.8
-0.2%
0.0
0.0%
-1.7
0.0%
-67.1
-0.5%
0.0
0.0%
Operating Income
-116.8
-1.8%
98.3
10.8%
-60.5
-1.2%
-74.8
-0.5%
273.9
6.9%
Non-Operating Income
5.4
0.1%
3.0
0.3%
5.0
0.1%
11.2
0.1%
-2.5
-0.1%
Taxes and Social Contribution
-24.1
-0.4%
-26.6
-2.9%
-25.5
-0.5%
-104.9
-0.7%
-92.3
-2.3%
Minority Interest
-0.7
0.0%
1.2
0.1%
2.7
0.1%
3.5
0.0%
1.2
0.0%
Net Income
-136.1
-2.0%
76.0
8.3%
-78.3
-1.5%
-165.0
-1.2%
180.3
4.5%
EBITDA
94.8
1.4%
134.5
14.8%
174.9
3.3%
591.1
4.2%
564.9
14.2%
(*) 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.
(**) Pro-forma ­ excluding the results of the Hygiene and Cleaning division due to the partial spin-off carried out on December 31, 2006.

A large portion of the variations presented in the consolidated results is attributable to the effect of the
acquisition of Swift Foods Company by JBS.

Net Revenue

Consolidated net revenue of JBS increased 256.4%, from R$3,967.6 million in 2006 to R$14,141.6
million in 2007. The amount of R$14,141.6 million is composed of net revenue of R$4,891.9 million
from JBS MERCOSUL and net revenue of R$9,249.6 million from JBS USA.

EBITDA

EBITDA of JBS for the 4Q07 was R$94.8 million, compared to R$134.5 million for the 4Q06.
Consolidated EBITDA margin for the 4Q07 was 1.4% reflecting the 15.1% margin obtained in the
period by JBS MERCOSUL and -1.4% margin obtained by JBS USA.

In 2007, EBITDA totaled R$591.1 million, an increase of 4.6% in comparison with the 2006 EBITDA of
R$564.9 million. In the same period, EBITDA margin was 4.2%, comprising 14.2% margin reported by
JBS MERCOSUL and -1.1% margin reported by JBS USA.
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3

Exchange Rate Variations on Foreign Currency Investments and Goodwill

The financial result was negatively impacted by the exchange variation on permanent investments
made in foreign currency, mainly due to the sharp devaluation of the U.S. dollar and the Argentine
peso in relation to the Brazilian real. The impact of this exchange variation in the consolidated financial
result is approximately R$44.0 million in the 4Q07, and R$160.0 million in the 12-month period ended
on December 31, 2007. It is important to highlight that unrealized exchange rate variations do not
generate a cash effect for the Company, thereby impacting net income but not the EBITDA.

From the acquisition of Swift Foods Company, JBS incorporated goodwill worth R$877.6 million based
on the expectation of future profits. This goodwill will be amortized in 5 years.
Besides, with the acquisition of 100% of SB Holding, Inc, goodwill of R$20.9 million was generated,
which will be amortized in a period not exceeding 10 years.

Considering the positive EBITDA, the Board of Directors met on November 1, 2007 and decided that
exchange rate losses from investments made in foreign currencies and future amortization of goodwill
in the acquisition of investments made by JBS USA and SB Holdings are permanently excluded for
dividend calculation purposes. This decision will be deliberated and voted in an upcoming Extraordinary
Shareholders' Meeting.

Net Loss

The Company posted a net loss of R$165.0 million in 2007, against a net income of R$180.3 million in
2006.

Considering the factors described in the explanatory notes 24 and 25 of the accounting statements and
excluding the amounts relating to the exchange variation on permanent investments made in foreign
subsidiaries, JBS' net loss in 2007 would be R$5.0 million.

This loss was partly due to the recent pressure on margins in the U.S. beef industry.

Consolidated Debt
R$ million
4Q07
3Q07
Var.%
4Q07/3Q07
Total Debt
3,749.6
3,949.5
-5.1%
Cash and Marketable Securities
1,381.7
1,621.0
-14.8%
Total Net Debt
2,367.9
2,328.5
1.7%
Net Debt/EBITDA
3.7X
3.3X
The Company's gross debt is primarily composed of financing facilities, export financing contracted
with financial institutions, and Notes (Reg. S and 144A) with face value of US$575 million, maturing in
2011 and 2016 (US$275 million issued at an interest rate of 9.375% per annum payable on a
quarterly basis, and US$300 million at an interest rate of 10.50% per annum payable on a semiannual
basis).
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4

Given the current global credit scenario, JBS anticipated with its main banks, the renewal of credit
lines for refinancing periods from 3 to 5 years, loans totaling US$ 750 million that would mature in July
2008.
In this report, operating results of JBS and JBS USA will be commented separately in order to facilitate
analysis and comparison of the numbers, and to keep the historical evolution of the information
provided, since the Company's Initial Public Offering.
ANALYSIS OF RESULTS ­ JBS MERCOSUL
Horizontal Analysis of the Main Operating Indicators - JBS MERCOSUL
R$ million
4Q07
4Q06*
Var.%
4Q07/4Q06
3Q07
Var.%
4Q07/3Q07
12M07
12M06*
Var.%
12M07/12M06
Net Sales Revenue
1,319.1
911.0
44.8%
1,315.5
0.3%
4,891.9
3,967.6
23.3%
Domestic Market
522.5
422.3
23.7%
511.6
2.1%
1,982.2
1,540.1
28.7%
Exports
796.6
488.7
63.0%
803.9
-0.9%
2,909.7
2,427.5
19.9%
Gross Profit
334.7
203.3
64.6%
309.6
8.1%
1,182.7
930.9
27.1%
Gross Margin
25.4%
22.3%
23.5%
24.2%
23.5%
Net Income
-136.1
76.0
-279.1%
-78.3
73.8%
-165.0
180.3
-191.5%
Net Margin
-10.3%
8.3%
-6.0%
-3.4%
4.5%
EBITDA
199.1
134.5
48.1%
171.9
15.9%
692.5
564.9
22.6%
EBITDA Margin
15.1%
14.8%
13.1%
14.2%
14.2%
Slaughtered Cattle
1
858.3
830.9
3.3%
929.3
-7.6%
3,621.0
3,414.0
6.1%
Sales Volumes
2
Domestic Market
198.0
169.6
16.8%
215.6
-8.1%
812.7
666.2
22.0%
Exports
112.7
99.1
13.7%
111.0
1.6%
439.5
380.8
15.4%
Total Volume
310.7
268.7
15.6%
326.6
-4.8%
1,252.2
1,047.0
19.6%
1
In thousands of heads
2
In thousands of tons
(*) Pro-forma ­ excluding the results of the operations of the Hygiene and Cleaning division due to the partial spin-off carried out on December
31, 2006.

Net Operating Revenue JBS MERCOSUL

Net operating revenue rose 44.8% to R$1,319.1 million in the 4Q07, from R$911.0 million in the
4Q06. Compared to the 3Q07, net revenue increased by 0.3%. Net revenue in the 12M07 rose 23.3%
in comparison with the 12M06.

The increase in net operating revenue reflects (i) the higher demand in the domestic and export
markets; (ii) the integration of the new companies acquired in Argentina; (iii) the company's flexibility
in distributing its products to the domestic and export markets, and (iv) the possibility of optimizing its
results through the rational distribution of its production between fresh beef and industrialized
products.

The highlight of the 4Q07 was the impressive performance in the export market, whose revenues were
63.0% higher than in the 4Q06 due to a combination of higher export volumes and higher prices.

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Export revenue as a percentage of the Company's total net revenue rose from 54% in the 4Q06 to
60% in the 4Q07, while the domestic market accounted for 40% of net revenue in the 4Q07, against
46% in the 4Q06, as shown in the graphs below.











Gross Margin

As a result of the increased net operating revenue, gross profit rose 64.6%, from R$203.3 million in
the 4Q06 to R$334.7 million in the 4Q07. As for gross margin, the company registered um increase of
3.1 p.p., from 22.3% in the 4Q06 to 25.4% in the 4Q07. In relation to the 3Q07, gross margin rose
1.9 p.p.

EBITDA

In the 4Q07, the Company's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
increased 48.1%, from R$134.5 million in the 4Q06 to R$199.1 million in the 4Q07. EBITDA margin
rose 0.3 p.p., from 14.8% in the 4Q06 to 15.1% in the 4Q07.

In 2007, EBITDA was R$692.5 million, a 22.6% growth over the 2006 number. EBITDA margin
remained stable at 14.2%.

Cattle Slaughter Volume

In the 4Q07, the slaughter volume of JBS MERCOSUL increased 3.3%, totaling 858,000 heads
compared to 831,000 heads in the same period in 2006.

Compared to the 3Q07, cattle slaughter volume decreased 7.6% according to the seasonal effect, as
can be observed in the following graph showing the quarterly slaughter volume.










Source: JBS
Net Revenue Distribution
Net Revenue Distribution
Domes tic
Market
39%
Exports
61%
Domes tic
Market
40%
Exports
60%
Domes tic
Market
46%
Exports
54%
4Q06: R$911.0 m illio n
4 Q07 : R$1 ,319 .1 million
3Q07: R$1,315.5 million
Source: JBS
Net Revenue Distribution
Net Revenue Distribution
Domes tic
Market
39%
Exports
61%
Domes tic
Market
40%
Exports
60%
Domes tic
Market
46%
Exports
54%
4Q06: R$911.0 m illio n
4 Q07 : R$1 ,319 .1 million
3Q07: R$1,315.5 million
Cattle Slaughtered ­ Thousand Heads of Cattle
Cattle Slaughtered ­ Thousand Heads of Cattle
858
701
760
596
530
724
809
745
758
831
936
830
817
929
947
886
1Q
2Q
3Q
4Q
2004
2005
2006
2007
Cattle Slaughtered ­ Thousand Heads of Cattle
Cattle Slaughtered ­ Thousand Heads of Cattle
858
701
760
596
530
724
809
745
758
831
936
830
817
929
947
886
1Q
2Q
3Q
4Q
2004
2005
2006
2007
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6

Slaughter volume in the twelve months of 2007 increased 6.1% in relation to the 12M06.

Currently, the total slaughter capacity of JBS is 18,400 heads/day in Brazil and 6,700 heads/day in
Argentina, bringing the total to 25,100 heads/day in JBS MERCOSUL.

Vertical Analysis of the Operating Performance JBS MERCOSUL
R$ million
4Q07
%
4Q06**
%
3Q07
%
12M07
%
12M06**
%
Net Sales Revenue
1,319.1
100.0%
911.0
100.0%
1,315.5
100.0%
4,891.9
100.0%
3,967.6
100.0%
Cost of Goods Sold
-984.4
-74.6%
-707.6
-77.7%
-1,005.9
-76.5%
-3,709.2
-75.8%
-3,036.7
-76.5%
Gross Margin
334.7
25.4%
203.3
22.3%
309.6
23.5%
1,182.7
24.2%
930.9
23.5%
Selling Expenses
-117.1
-8.9%
-74.9
-8.2%
-115.7
-8.8%
-439.3
-9.0%
-347.3
-8.8%
General and Adm. Expenses
-40.7
-3.1%
-29.5
-3.2%
-41.1
-3.1%
-130.4
-2.7%
-105.5
-2.7%
Net Financial Income (Expenses)*
-68.5
-5.2%
-0.7
-0.1%
-171.8
-13.1%
-370.0
-7.6%
-204.1
-5.1%
Equity in Subsidiaries
-126.7
-9.6%
0.0
0.0%
-34.3
-2.6%
-161.0
-3.3%
0.0
0.0%
Amortization of Goodwill
-73.6
-5.6%
0.0
0.0%
-0.4
0.0%
-74.9
-1.5%
0.0
0.0%
Non-recurring Expenses
-14.8
-1.1%
0.0
0.0%
-1.7
-0.1%
-67.1
-1.4%
0.0
0.0%
Operating Income
-106.9
-8.1%
98.3
10.8%
-55.4
-4.2%
-59.8
-1.2%
273.9
6.9%
Non-Operating Income
-5.1
-0.4%
3.0
0.3%
-0.9
-0.1%
-5.2
-0.1%
-2.5
-0.1%
Taxes and Social Contribution
-23.4
-1.8%
-26.6
-2.9%
-24.7
-1.9%
-103.4
-2.1%
-92.3
-2.3%
Minority Interest
-0.7
-0.1%
1.2
0.1%
2.7
0.2%
3.5
0.1%
1.2
0.0%
Net Income
-136.1
-10.3%
76.0
8.3%
-78.3
-6.0%
-165.0
-3.4%
180.3
4.5%
(*) The net financial result and, consequently, the net loss was affected by exchange rate variation on investments made in foreign currencies to
the amount of R$44.0 million for the 4Q07 and R$160.0 million for the 12M07. Currency 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.
(**) Pro-forma ­ excluding the results of the operations of the Hygiene and Cleaning division due to the partial spin-off carried out on December
31, 2006.

Cost of Goods Sold

The cost of goods sold increased 39.1%, from R$707.6 million in the 4Q06 to R$984.4 million in the
4Q07. The ratio of cost of goods sold to net revenue decreased from 77.7% in the 4Q06 to 74.6% in
the 4Q07, mainly due to the company's strategy used to purchase raw material during the quarter.

Due to the increased cost of cattle acquisition, the Company, using the favorable geographic
distribution of its plants and the market scenario, intensified the purchase of raw material from third
parties for deboning and processing, motivated by the detachment between the cattle acquisition price
and third party beef for deboning during the second half of the year.

Analyzing the annual results, the cost of goods sold in 2007 was R$3,709.2 million, increasing 22.1%
compared to 2006.

Selling, General and Administrative Expenses

Selling expenses increased from R$74.9 million in the 4Q06 to R$117.1 million in the 4Q07 as a result
of the (i) growth in the sales volume during the period and (ii) investments in the Company's
marketing initiatives to promote and consolidate the Swift brand, especially its new line of products
that had not been launched in the 3Q06. As a percentage of net operating revenue, selling expenses
increased 0.7 p.p., from 8.2% in the 4Q06 to 8.9% in the 4Q07. Administrative expenses increased
R$11.3 million compared to the 4Q06, representing 3.1% of the Company's net revenue in the 3Q07
and 3.2% in the 3Q06.
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7


Selling, general and administrative expenses were R$569.7 million in 2007, representing 11.6% of the
net revenue.

Net Financial Result
Net financial result for the 4Q07 was R$68.5 million negative, compared to R$0.7 million in the 4Q06.
In 2007, the net financial result was R$370.0 million negative, impacted by the exchange variation on
foreign currency investments. Both the American dollar and the Argentine peso suffered significant
devaluation against the Brazilian real in the period between the investment date and the end of the
fiscal year 2007. The dollar declined 7.9% against the real, and the Argentine peso fell 19.6% against
the real.
Net Loss

Net loss of JBS MERCOSUL in 2007 was R$165.0 million, compared to a net income of R$180.3 million
in 2006. In the 4Q07, net loss was R$136.1 million, compared to a net income of R$76.0 million in the
4Q06.

Considering the factors described in the explanatory notes 24 and 25 of the accounting statements and
excluding the amounts relating to the exchange variation on permanent investments made in foreign
subsidiaries, JBS' net loss in 2007 would be R$5.0 million.





























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8


Domestic Market JBS MERCOSUL
Domestic Market
4Q07
4Q06*
Var.%
4Q07/4Q06
3Q07
Var.%
4Q07/3Q07
12M07
12M06*
Var.%
12M07/12M06
Net Sales Revenue
1
Fresh and Chilled Beef
392.9
289.6
35.7%
362.8
8.3%
1,398.7
1033.0
35.4%
Processed Beef
64.8
56.3
15.1%
65.7
-1.4%
266.4
220.9
20.6%
Others
64.8
76.4
-15.2%
83.1
-22.0%
317.1
286.2
10.8%
TOTAL
522.5
422.3
23.7%
511.6
2.1%
1,982.2
1,540.1
28.7%
Volume
2
Fresh and Chilled Beef
150.5
122.9
22.5%
163.5
-8.0%
610.1
478.0
27.6%
Processed Beef
11.2
10.2
9.5%
11.2
0.4%
46.2
38.8
19.1%
Others
36.3
36.5
-0.4%
40.9
-11.3%
156.4
149.4
4.7%
TOTAL
198.0
169.6
16.8%
215.6
-8.1%
812.7
666.2
22.0%
Average Sales Price
3
Fresh and Chilled Beef
2.61
2.36
10.8%
2.22
17.7%
2.29
2.16
6.1%
Processed Beef
5.78
5.50
5.1%
5.88
-1.8%
5.76
5.69
1.2%
Others
1.78
2.10
-14.9%
2.03
-12.1%
2.03
1.92
5.8%
TOTAL
2.64
2.49
6.0%
2.37
11.2%
2.44
2.31
5.5%
1
In millions
2
In thousands of tons
3
In R$/Kg
(*) Pro-forma ­ excluding the results of the operations of the Hygiene and Cleaning division due to the partial spin-off carried out on December 31,
2006.
In the 4Q07, JBS MERCOSUL's net revenue from the domestic market totaled R$522.5 million, 23.7%
higher than in the 4Q06. This result was mainly due to the 16.8% growth in sales volume from
169,600 tons in the 4Q06, to 198,000 tons in the 4Q07, as well as a 6.0% increase in the average
selling price in relation to the 4Q06.

Compared to the 3Q07, volume decreased 8.1% in the 4Q07, and domestic net revenue increased
2.1%, offset by the average price increase of 11.2%.
Source: JBS
Net Revenue Distribution ­ Domestic Market
Net Revenue Distribution ­ Domestic Market
Others
18%
Fresh B eef
69%
Pro cessed Beef
13%
4Q06: R$422.3 million
Fresh B eef
75%
P o rcessed Beef
12%
Others
13%
4Q07: R$522.5 million
Fresh Beef
71%
Processed
Beef
13%
Others
16%
3Q07: R$511.6 million
Source: JBS
Net Revenue Distribution ­ Domestic Market
Net Revenue Distribution ­ Domestic Market
Others
18%
Fresh B eef
69%
Pro cessed Beef
13%
4Q06: R$422.3 million
Fresh B eef
75%
P o rcessed Beef
12%
Others
13%
4Q07: R$522.5 million
Fresh Beef
71%
Processed
Beef
13%
Others
16%
3Q07: R$511.6 million

In the 12M07, total net revenue increased 28.7% compared to the 12M06, and volume increased
22.0% in the same period.

The increase in the raw material cost noticed during 2007, reflects directly to beef sales price to
customers which increased at an average of 5.5%.
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9


This growth was mainly driven by (i) higher beef consumption in Brazil and Argentina fueled by the
good performance of the local economy; (ii) greater allocation of volumes to the cuts market, which
was more attractive than the international markets; (iii) the strong performance of higher value-added
cuts sold under JBS brands such as Matturata, Cabaña Las Lilas and Organic Beef Friboi, and (iii) sales
growth in Argentina due to the startup of operations of the Venado Tuerto and Pontevedra plants.

In the processed beef segment, the Company posted 9.5% growth in the sales volume in the quarter,
from 10,200 tons in the 4Q06 to 11,200 tons in the 4Q07. In comparison with the 3Q07, processed
beef volumes continued at the same level, while selling prices decreased 1.8%. In the 12M07, volumes
increased by 19.1%, with average prices remaining stable compared to the 12M06. This result was
mainly due to a higher consumption of the products sold by the Company, which has been investing
heavily in the consolidation of its brands in the processed foods sector, as well as by the sales volumes
of Swift's new product line.

Average price of processed beef rose 5.1% in the quarter, mainly on account of the product mix during
the period, with increased sales of higher value-added products under the Swift and Anglo brands.


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10

Export Market JBS MERCOSUL
Exports
4Q07
4Q06*
Var.%
4Q07/4Q06
3Q07
Var.%
4Q07/3Q07
12M07
12M06*
Var.%
12M07/12M06
Net Sales Revenue
1
Fresh and Chilled Beef
590.9
333.0
77.4%
592.0
-0.2%
2,105.2
1,744.8
20.7%
Processed Beef
205.7
155.6
32.2%
211.9
-2.9%
804.6
682.6
17.9%
TOTAL
796.6
488.6
63.0%
803.9
-0.9%
2,909.7
2,427.4
19.9%
Volume
2
Fresh and Chilled Beef
84.6
64.6
30.9%
71.6
18.2%
305.0
261.1
16.8%
Processed Beef
28.2
34.6
-18.7%
39.4
-28.6%
134.5
119.8
12.3%
TOTAL
112.7
99.2
13.6%
111.0
1.6%
439.5
380.9
15.4%
Average Sales Price
3
Fresh and Chilled Beef
6.99
5.16
35.5%
8.27
-15.5%
6.90
6.68
3.3%
Processed Beef
7.30
4.49
62.6%
5.38
35.9%
5.98
5.70
5.0%
TOTAL
7.07
4.92
43.5%
7.24
-2.4%
6.62
6.37
3.9%
Average Sales Price
4
Fresh and Chilled Beef
3.91
2.40
63.3%
4.31
-9.3%
3.54
3.07
15.4%
Processed Beef
4.09
2.09
95.9%
2.80
45.9%
3.07
2.62
17.3%
TOTAL
3.96
2.29
72.9%
3.78
4.8%
3.40
2.93
16.1%
1
In millions
2
In thousands of tons
3
In R$/Kg
4
In US$/Kg
(*) Pro-forma ­ excluding the results of the operations of the Hygiene and Cleaning division due to the partial spin-off carried out on December 31,
2006.
Net export revenues increased 63.0% to R$796.6 million in the quarter, versus R$488.6 million in the
4Q06.

The increase in the quarter is explained by (i) the higher demand in the export market, (ii) the startup
of operations of the Venado Tuerto and Pontevedra plants (iii) the increase in the average selling price
and (iv) the optimization of revenue through products targeted at more profitable markets.

The increase in the average selling price in dollar terms was mainly driven by (i) a change in the
product mix during the quarter, which favored sales of higher value-added cuts; (ii) the higher cost of
raw materials in the period; and (iii) the variation of the Brazilian real against the U.S. dollar, which
boosted prices in the international market.
Source: JBS
Net Revenue Distribution ­ Exports
Net Revenue Distribution ­ Exports
Fresh Beef
68%
P ro cessed B eef
32%
4Q06: R$488.6 million
Fresh B eef
74%
Pro cessed Beef
26%
4Q07: R$796.6 million
Fresh Beef
74%
Pro cessed B eef
26%
3Q07: R$803.9 million
Source: JBS
Net Revenue Distribution ­ Exports
Net Revenue Distribution ­ Exports
Fresh Beef
68%
P ro cessed B eef
32%
4Q06: R$488.6 million
Fresh B eef
74%
Pro cessed Beef
26%
4Q07: R$796.6 million
Fresh Beef
74%
Pro cessed B eef
26%
3Q07: R$803.9 million
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11

In the 12M07, net export revenue grew 19.9% compared to the 12M06, driven by a 15.4% growth in
volumes shipped and a 3.9% increase in average selling prices in real (R$).

With regard to the export volumes, the following factors can be highlighted:

Higher exports to the European Union, which has a product mix that favors higher value-added
cuts;

Higher demand in Russia and the Middle East.

Increase in exports to growing markets such as Venezuela, Peru, Hong Kong, and Philippines.

16.8% growth in fresh beef exports and 12.3% growth in processed beef exports.

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12
Source: JBS
Export Destinations ­ 4Q07
Export Destinations ­ 4Q07
Russia
28%
Holand
9%
USA
6%
Spain
3%
Saudi
Arabia
2%
Others
28%
Germany
5%
Hong Kong
6%
United
Kingdon
8%
Italy
5%
Russia
25%
USA
9%
Italy
8%
Holand
6%
Others
26%
Egypt
4%
Spain
3%
Germany
4%
Hong Kong
5%
United
Kingdon
10%
Export Destinations­ 4Q06
Export Destinations­ 4Q06
Source: JBS
Source: JBS
Export Destinations ­ 4Q07
Export Destinations ­ 4Q07
Russia
28%
Holand
9%
USA
6%
Spain
3%
Saudi
Arabia
2%
Others
28%
Germany
5%
Hong Kong
6%
United
Kingdon
8%
Italy
5%
Russia
25%
USA
9%
Italy
8%
Holand
6%
Others
26%
Egypt
4%
Spain
3%
Germany
4%
Hong Kong
5%
United
Kingdon
10%
Export Destinations­ 4Q06
Export Destinations­ 4Q06
Source: JBS
Source: JBS
Export Destinations­ 12M07
Export Destinations­ 12M07
Russia
17%
Holand
10%
USA
8%
Italy
7%
Others
29%
Egypt
3%
Spain
4%
Germany
5%
Hong Kong
7%
United
Kingdon
10%
Russia
18%
USA
10%
Italy
7%
Holand
7%
Others
32%
Hong Kong
4%
Saudi
Arabia
3%
Germany
4%
Egypt
5%
United
Kingdon
10%
Export Destinations­ 12M06
Export Destinations­ 12M06
Source: JBS
Source: JBS
Export Destinations­ 12M07
Export Destinations­ 12M07
Russia
17%
Holand
10%
USA
8%
Italy
7%
Others
29%
Egypt
3%
Spain
4%
Germany
5%
Hong Kong
7%
United
Kingdon
10%
Russia
18%
USA
10%
Italy
7%
Holand
7%
Others
32%
Hong Kong
4%
Saudi
Arabia
3%
Germany
4%
Egypt
5%
United
Kingdon
10%
Export Destinations­ 12M06
Export Destinations­ 12M06
Source: JBS




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13
CAPITAL EXPENDITURE
For the 4Q07, the Company's total capital expenditure on property, plant and equipment, including
acquisitions (excluding Swift), totaled R$205.7 million. In 2007, these expenditures amounted to
R$641.0 million.

During the year 2007, investments in projects include:

Increasing the production capacity of its processed beef plant located in Andradina, São Paulo,
from 30 tons to 100 tons per day. The expansion of this unit was concluded in the first half of
October 2007 and is already in the operational phase;

Increasing the slaughtering and debone capacity of the unit in Barra do Garças, Mato Grosso,
from 1,300 heads/day to 2,500 heads/day. The first phase of the expansion has already been
concluded and its current capacity is 2,000 heads/day;


Increasing the slaughtering and debone capacity of the unit in Campo Grande, Mato Grosso do
Sul from 1,300 heads/day to 3,000 heads/day;

Increasing the slaughtering and debone capacity of the unit in Vilhena, Rondônia, from 900
heads/day to 2,200 heads/day;


Acquisition of a cattle slaughtering plant in Maringá, Paraná, at a cost of R$80.0 million, with
expected investments of R$10.0 million towards expansion.

Construction of a new container terminal in Cubatão, São Paulo, for exports, with capacity to
receive and store 240 containers. The terminal was inaugurated in October 2007;

Other investments such as acquisition of new equipment and maintenance of production
facilities.

















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14
ANALYSIS OF RESULTS - JBS USA, INC.


Reporting Basis for JBS USA

Prior to its acquisition by JBS, the subsidiary of Swift Foods Company, S&C Holdco 3, Inc., "sub-
holding", the direct parent company of all operating companies, reported its results in accordance with
the regulations of the U.S. Securities and Exchange Commission ("SEC"), with the fiscal year ending in
May of each year and, in accordance with local industry practices, on a weekly basis, with each quarter
comprising a 13- and/or 14-week period, and the fiscal year comprising 52 or 53 weeks, depending on
the specific year. Swift Foods Company, the holding company for the entire group, did not report its
results to the SEC.

Following the acquisition of Swift by JBS, the company's new management decided to (i) change its
name from Swift Foods Company to JBS USA, Inc., (ii) alter the fiscal year so that it ends in the month
of December, aligning it to the fiscal year of JBS, (iii) maintain the presentation of results on weekly
basis, as described above, and (iv) change the external auditing firm of the company to Grant
Thornton as of 7/11/2007, as to maintain a single external auditing company for the entire group.

Therefore, the results now consolidated at JBS consider the 173-day period beginning on July 11, 2007
and ending on December 30, 2007.
Considering that all the alterations described above resulted in a lack of comparability for the period
consolidated at JBS, the following are being included below (i) revised results of JBS USA in Brazilian
real and in BR GAAP for the 173 days between 07/11/07 and 12/30/07 and (ii) an enclosure
("Enclosure I") containing a comparison between the 90-day period ended on 09/23/07 and the 98-
day period ended on 12/30/07, both in US GAAP and in US dollar.

With regard to item (ii) above, although the figures are in US GAAP and in US dollar, not fully
reflecting the period for which results were consolidated at JBS, the qualifications and comments are
valid and adequately reflect the variables that influenced the company's performance since the day of
its acquisition by JBS.
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15

Income Statement ­ JBS USA, Inc.
The table below shows the operating results of JBS USA, Inc., formerly Swift Foods Company ("Swift"),
including its operations in the United States and Australia, revised, in BR GAAP and in Brazilian real
(R$) for the period between 07/11/2007 and 12/30/2007.
R$ million
07/11/2007
12/30/2007
%
Net Sales Revenue
9,249.6
100.0%
Cost of Goods Sold
-8,899.9
-96.2%
Gross Margin
349.7
3.8%
Selling Expenses
-347.3
-3.8%
General and Adm. Expenses
-145.2
-1.6%
Net Financial Income (Expenses)
-33.2
-0.4%
Equity Accounting Income
0.0
0.0%
Other Operational Expenses
0.0
0.0%
Non-operational Result
16.4
0.2%
Taxes and Social Contribution
-1.5
0.0%
Minority Interest
0.0
0.0%
Net Income
-161.0
-1.7%
EBITDA
-101.4
-1.1%

Net revenue of JBS USA for the 173-day period between July 11, 2007 and December 30, 2007 totaled
R$9,249.6 million. Gross margin for the period was 3.8% and net margin was a negative 1.7%.
EBITDA totaled R$-101.4 million, with the EBITDA margin being -1.1%.

As previously mentioned, because of the lack of comparability between this period and the company's
past results, comments on the operating performance of JBS USA and the division follow.


















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16
COMMENTS ON OPERATING PERFORMANCE ­ JBS USA, INC.

The table below shows the operating results of JBS USA, Inc., formerly Swift Foods Company ("Swift"),
including its operations in the United States and Australia, revised, in US GAAP and in U.S. dollars
(US$), during the last 13 weeks and 14 weeks ended on 09/23/07 and 12/30/07, respectively. Results
for the last 13 weeks ended on 09/23/07 are pro-forma as they combine two distinct periods.
US$ million
Dec. 30
%
Sep. 23
%
Var. US$
Var. %
Net Sales Revenue
2,871.4
100.0%
2,588.2
100.0%
283.2
10.9%
Cost of Goods Sold
-2,902.5
-101.1%
-2,571.7
-99.4%
-330.8
-12.9%
Gross Margin
-31.1
-1.1%
16.5
0.6%
-47.6
-288.5%
Selling, General and Adm. Expenses
-35.7
-1.2%
-35.3
-1.4%
-0.4
-1.1%
Net Financial Income (Expenses)
-12.5
-0.4%
-27.7
-1.1%
15.2
-54.9%
EBITDA
-41.1
-1.4%
3.8
0.1%
-44.9
-1181.6%
Net Revenue

Net revenue for the 14 weeks ended on 12/30/07 increased $283.2 million, or 10.9%, when compared
to the 13 weeks ended 09/23/07, primarily reflecting an additional production week in the fourth
quarter of 2007, coupled with an overall 7.7% increase in selling prices.

The increased selling price includes relatively flat US beef prices, a 15.6 % decrease in pork prices
offset by a 20.0% increase in Australian beef prices ­ including a 5.1% appreciation of the Australian
dollar against the US dollar.

The volume growth in the US resulted from an additional operating week in the fourth quarter of 2007
and includes an 11.6% increase in sales volumes of American Beef, a 24.2% increase in pork price,
partially offset by a 3.7% decrease in sales volume in Australia due to the seasonal closure of the
Australian plants in mid-December each year.

Cost of Goods Sold

Cost of goods sold increased $330.8 million, or 12.9%, for the 14 weeks ended on December 30,
2007, compared to the 13 weeks ended on September 23, 2007 including the impact of an additional
production week in the fourth quarter of 2007.

The increase in the cost of goods sold is composed of (i) a 17% increase in the US Beef division as a
result of the 5.8% rise in cattle prices, offset by a 1.1% decrease in operating expenses, (ii) a 0.7%
growth in the pork division, offset by a 23.4% decline in hog prices, and (iii) an 11.3% growth in
Australia as a result of a 17.2% increase in Australian cattle prices, partially offset by a 1.7% decrease
in operating expenses.
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17

Gross Margin
Gross margin of JBS USA was -1.1% for the 14 weeks ended December 30, 2007, compared to 0.6%
for the 13 weeks ended September 23, 2007.

Gross margin percentages overall declined 1.7p.p, driven by a 5.3% decline in the US beef division,
partially offset by a 3.9% margin improvement in pork and a 3.6% margin improvement in Australia.

The decline in US beef margins was due to the significantly lower industry-wide meat margins,
impacting the company with a $ 95 million decline in margin in the fourth quarter, as prices of live
cattle remained high while carcass values declined.

Improvements in US pork division were due to the improved pork margins in the fourth quarter and
improvements in the Australia division were largely due to favorable cattle availability prior to the
plants' annual operational shutdown in December.

Selling, General and Administrative Expenses

Selling, general, and administrative expenses were $35.7 million for the 14 weeks ended December
30, 2007, compared to $35.3 million for the 13 weeks ended September 23, 2007. These expenses
increased by $0.4 million, or 1.1%, when compared to the previous year.

The fourth quarter includes approximately $2.5 million of management incentive expenses, while the
third quarter did not include any such expenses as well as the additional operating week when
compared to the prior quarter. These expenses were offset by the $0.8 million decrease in
professional fees due to reductions in audit fees and oversight fees paid to the company's previous
owners, a reduction of $0.7 million in bad debt expense, and a $0.9 million decrease in the one-time
costs associated with a retention agreement in place to ensure continuity of certain managerial
positions for a period of up to 6 months after the acquisition of Swift. This expense was accrued over
the service period from May through December 2007 and was not renewed following its expiration and
was paid in January 2008.
Net Financial Result
Net financial result for the 14 weeks ended December 30, 2007 was $12.5 million, compared to $27.7
million for the 13 weeks ended September 23, 2007. The decrease of $15.2 million was mainly driven
by the Company's lower debt levels and its new capital structure following the conclusion of the
acquisition of Swift by JBS on July 11, 2007. Besides that, there was an inclusion in the quarter ended
September 2007 of approximately US$12.0 million related to the costs and commissions associated
with financing contracted for the acquisition of Swift that ended up not being used given the final
capital structure for the acquisition. Note that these costs were already included in the total acquisition
cost and, in accordance with US GAAP, should be expensed on day one rather than being amortized
over time.

EBITDA

As a result of the operating aspects commented above, EBITDA for the 14 weeks ended 12/30/07
totaled US$-41.1 million, compared to US$3.8 million for the 13 weeks ended on 09/23/07. EBITDA
margin was -1.4% and 0.1%, respectively.


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18
ANALYSIS OF RESULTS BY DIVISION
Main Operating Indicators
Operating Results
1
Dec. 30
Sep. 23
Variance US$
Variance in
Revenue
Variance in
Head Kill %
Variance in
Average Price
%
Net Revenue
2
Swift - Beef
1,751.4
1,576.5
174.9
11.1%
11.6%
-0.5%
Swift - Pork
598.2
570.3
27.9
4.9%
24.2%
-15.6%
Swift - Australia
594.9
515.5
79.4
15.4%
-3.7%
20.0%
Corporate and Others
-73.1
-74.1
1.0
-1.4%
-
-
TOTAL
2,871.4
2,588.2
283.2
10.9%
18.7%
7.7%
EBITDA
2
Swift - Beef
-101.6
-10.3
-91.3
-882.5%
-
-
Swift - Pork
40.5
15.4
25.1
162.3%
-
-
Swift - Australia
20.0
-1.3
21.3
1661.3%
-
-
Corporate and Others
-
-
-
-
-
-
TOTAL
-41.1
3.8
-44.9
-1174.5%
-
-
EBITDA Margin
Swift - Beef
-5.8%
-0.7%
-
-
-
-
Swift - Pork
6.8%
2.7%
-
-
-
-
Swift - Australia
3.4%
-0.2%
-
-
-
-
Corporate and Others
-
-
-
-
-
-
TOTAL
-1.4%
0.1%
-
-
-
-
1
Last 14 and 13 weeks ended 12/30/07 and 09/23/07, respectively, in US$ and US GAAP
2
In millions of US$
Beef ­ United States

Net Revenue

Net revenue from the US beef division was $1,751.4 million for the 14 weeks ended December 30,
2007, compared to $1,576.5 million for the 13 weeks ended September 23, 2007. The revenue
growth of $174.9 million, or 11.1%, reflects the additional production week with nominally lower
selling prices on 11.6% higher volumes.

Gross Margin

Gross margin of the US beef division was -5.5% for the 14 weeks ended December 30, 2007,
compared to -0.2% for the 13 weeks ended September 23, 2007. The negative gross margins were
attributable to significantly lower industry-wide beef margins due to high prices of live cattle.

EBITDA

EBITDA of the US beef division was a negative $101.6 million for the 14 weeks ended December 30,
2007, compared to negative $10.3 million for the 13 weeks ended September 23, 2007. The decrease
in the EBITDA reflects an 11.1% increase in net sales made up of nominally lower selling prices,
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19
coupled with a 11.6% volume increase noted above, offset by 5.8 % higher unitary costs of raw
material.

Beef margin declined $95 million from the 13 weeks ended on 09/23/07, due to the high cattle costs
and lower carcass values.

Higher freight costs, driven by record diesel prices and associated fuel surcharges from third-party
carriers, negatively impacted EBITDA in the fourth quarter compared to the previous quarter.

However, several cost categories showed significant improvement in the quarter, including lower
supply expenses and labor expenses due to significantly lower overtime as employees have regained
their production skills and are able to accomplish more during the regular shift hours, returning close
to pre-ICE raid levels. Besides, due to the de-layering of management, expenses with salaries fell in
the fourth quarter.

Selling, general, and administrative expenses increased $0.5 million, or 2.9%, higher than the
previous quarter primarily due the additional week in the quarter as well as the inclusion in the current
quarter of management incentive amounts, partially offset by reductions in salaries as a result of
corporate restructuring at the head office, and professional fees including audit fees and legal
expenses.
Pork ­ United States

Net Revenue

Net revenue of the US pork division was $598.2 million for the 14 weeks ended December 30, 2007,
compared to $570.3 million for the 13 weeks ended September 23, 2007. The increase of $27.9
million, or 4.9%, reflects the 24.2% increase in production volume partially offset by a 15.6%
reduction in selling prices and an additional operating week in the fourth quarter. The decrease in
selling prices was due to than stronger than normal industry-wide seasonal production of pork.

Gross Margin
Gross margin of the pork division was 7.9% for the 14 weeks ended December 30, 2007, and 4.0% for
the 13 weeks ended September 23, 2007. The increase in gross margin percentage reflects a 23.4%
reduction in raw material cost partially offset by a 15.6% reduction in selling prices on 24.2% higher
volumes.

EBITDA
EBITDA of the US pork division was $40.5 million for the 14 weeks ended December 30, 2007,
compared to $15.4 million for the 13 weeks ended September 23, 2007. The increase of $25.1
million, or 162.3%, resulted from a 24.2% increase in sales volume, partially offset by lower selling
prices, combined with a 23.4% reduction in hog prices due primarily to derivative gains and overall
market conditions.

Production costs were higher, driven by slightly higher warehousing costs, increases in salaried labor
due to the inclusion of a management incentive accrual in the fourth quarter, higher overtime due to
seasonally high production levels, and utilities costs due to high natural gas prices.
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20
Pork EUA
EBITDA (US$ million) & EBITDA margin
Pork EUA
EBITDA (US$ million) & EBITDA margin
122.1
132.6
18.3
73.3
70.3
15.5
40.5
6.8%
2.7%
3.2%
3.5%
5.4%
6.7%
1.2%
FY03
FY04
FY05
FY06
FY07
sep 23
dec 30
Margin (%)
Source: Swift Foods 10K, JBS

The pork division in USA presented in the 4Q07 its largest EBITDA margin in the last 5 years.

Beef ­ Australia

Net Revenue
Net revenue of the Australia division was $594.9 million for the 14 weeks ended December 30, 2007,
compared to $515.5 million for the 13 weeks ended September 23, 2007. The increase in net revenue
of $79.4 million, or 15.4%, reflects 20% higher selling prices on 3.7% lower volume as well as an
additional operating week in the fourth quarter. Selling prices, about 80% of which are priced in US
dollars, were higher to compensate the 5% appreciation of the Australian dollar against the US dollar.

The profitability of the grass-fed operation is largely driven by weather conditions, by the margin
between cattle price and selling price, especially when there is abundant supply of livestock. Australia
continues to witness abnormal rainfall patterns, which impacts the grass-fed operation business.

In addition, on the grain-fed side of the business, high corn prices coupled with the high Australian
dollar against the US dollar, made pass-through of these costs to Japanese customers, who usually
buy in US dollars. The Company has been quite successful in recent weeks in explaining to customers
that increased grain prices have driven our production costs much higher in the grain-fed division and
there has been some willingness to accept higher prices, despite the negative impact on volumes sold.
In the last quarter of 2007, the volume declined in the grass-fed operation due to the annual seasonal
closure of the plants for the holiday shutdown.

Gross Margin

Gross margin in the Australia division was 2.9% in the 14 weeks ended December 30, 2007, compared
to -0.7% for the 13 weeks ended September 23, 2007, due to the increases in selling prices and
reduction in operating costs more than offsetting higher livestock costs.
EBITDA
EBITDA of the Australia division was $20.0 million for the 14 weeks ended December 30, 2007,
compared to a negative $1.3 million for the 13 weeks ended September 23, 2007. The increase of
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21
$21.3 million, or 1,661.3%, was a result of the 5% appreciation of the Australian dollar against the US
dollar.

In the grain-fed business, the increased selling prices of products and higher slaughter volumes
contributed to offsetting the higher cost of grains used in the cattle feeding operation.

In addition, EBITDA was negatively impacted by the increase in the grass-fed cattle cost of acquisition
due to lower cattle volumes available for slaughter, besides higher freight expenses as a result of high
oil prices, higher packaging costs, production maintenance and electricity costs.

















EBITDA margin in the 4Q07 of the beef division in Australia was its second highest EBITDA in the last 5
years.



















Beef Australia
EBITDA (US$ million) & EBITDA margin
Beef Australia
EBITDA (US$ million) & EBITDA margin
106.0
42.9
12.7
29.5
45.6
-1.3
20.0
3.4%
-0.3%
2.4%
1.7%
5.7%
2.9%
1.1%
FY03
FY04
FY05
FY06
FY07
sep 23
dec 30
Margin (%)
Source: Swift Foods 10K, JBS
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22
NORMALIZATION OF EBITDA FOR THE PERIOD
As a result of the acquisition by JBS, we incurred certain one-time non-recurring costs which were
recognized in the income statement for the quarter ended December 30, 2007 including managerial
retention expenses.

In addition, as a result of the restructuring implemented by JBS, various expenses were reduced, such
as SG&A and water treatment expenses. Moreover, since taking over the management, JBS has been
working to improve the operational efficiency in aspects like beef yield and the Australian sales model.
As a part of these initiatives was completed during the 14 weeks ended on December 30, 2007, the
benefits of such initiatives will be realized in the upcoming quarters.

Finally, the ramp up of the Greeley beef plant to a second production shift and the operational
improvements in other plants resulted in higher salaries, loss of profitability, inventory and freight
costs, etc. However, the costs were incurred before the benefits of increased production were
obtained.
Adjusted EBITDA
1
Dec. 30
EBITDA
2
Swift - Beef
-101.6
Swift - Pork
40.5
Swift - Australia
20.0
Corporate and Others
-
TOTAL
-41.1
Adjustments:
Non-recurring Expenses ­ Retention Plan
3
1.5
Expenses Reductions - JBS USA
4
1.8
14 weeks compared to 13 weeks
5
2.3
Costs ­ Increase in Production
6
31.8
Beef US meat margin normalization
7
95.4
Yield improvements subsequent to acquisition
8
3.2
Subtotal
136.0
Adjusted EBITDA
94.9
margin EBITDA
3.3%
(1) Last 14 weeks ended 12/30/2007 in US GAAP and in US$;
(2) In millions of US$;
(3) Non-recurring expenses associated with the employee retention plan;
(4) Permanent reduction in selling, general and administrative expenses obtained so far by JBS USA;
(5) The quarter ended in December contained 14 weeks and the quarter ended in September contained 13 weeks;
(6) Costs associated with the higher production, the benefits of which will only be captured in the coming quarters;
(7) US beef margins were lower than historical levels during the quarter ended December 30, 2007;
(8) Improvements in product yields occurring after the acquisition date.

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23
RECENT EVENTS

The European Union Restriction
The European Union (EU) suspended imports of fresh beef from Brazil at the end of January 2008,
when it started more rigorous controls over the traceability of animals and stricter import rules. The
decision was taken after European and Brazilian authorities failed to reach an agreement on the
number of rural properties that could be certified to sell the Brazilian products to the European market.

Initially Brazil submitted a list of more than 2,600 agricultural properties, which was rejected by the
EU as it considered that only around 300 properties would comply with its requirements. A second list
of around of 600 farms too was rejected by the EU, which requested a new list and sent an inspection
team to Brazil.

On February 27, 2008, the EU authorized imports of seasoned and deboned beef from 106 Brazilian
properties. Suspension on other properties remains, but it is believed that, by the end of 2008, more
properties will gradually be released depending on the audits to be conducted by the Brazilian
government.

For JBS, the increased controls imposed by the EU and the reduction in the number of properties
authorized to raise cattle that meet European stands, directly affects export volumes of fresh beef,
besides contributing to the increase in the prices per tonne of fresh beef, and increase the demand and
prices of processed products in Mercosul.

Continuing its policy of constant expansion and keenly watching the global trends, JBS operates in a
pioneering and strategic manner so that its results are not compromised in an unfavorable industry
scenario. With its production and distribution units strategically located in Brazil, Argentina, USA,
Australia, Italy, Russia and Africa, with 100% access to the world beef market, JBS proves its efficacy
and sound condition during all the challenging moments arising from business and sanitary
restrictions, as it can serve its customers efficiently.

The strategy of geographical distribution is also allied to its large production capacity for processed
beef, which does not have any health restriction. The Company is the industry leader and thus
maintains its sales volumes while acquiring customers and markets in this scenario of EU restrictions.


Acquisition of Inalca and Montana Alimentari

On March 03, 2008, JBS concluded the acquisition in a total amount of 225 million Euros (US$331.1
million) of 50% of "Inalca", absolute leader in Italy and one of the main European operators in the
processing of beef. The other 50% of Inalca remains with Cremonini S.p.A., the Italian company that
operates in three business areas: production, distribution and supply. The transaction includes the
acquisition of Montana Alimentari.

The strategic alliance between JBS and Inalca will generate significant synergies between the products
and sales channels, considering their leadership in their respective markets ­ JBS, with production
plants and distribution channels in South America, United States and Australia, and Inalca, with
presence in Europe, Russia and Africa.

For JBS, the transaction represents higher penetration in Eastern Europe, the opportunity to access
new markets and clients that include large multinationals in the fast food sector, processed food
producers, large retail chains and foodservice companies. It will also provide access to Inalca's widely
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24
recognized state-of-the-art production technologies and to higher value added products sold under the
Montana brand.

For Inalca, the transaction guarantees privileged access to the world's main beef supply sources,
besides strengthening the global control of the entire supply chain.

Acquisitions of National Beef, Smithfield Beef and Tasman

On March 04, 2008, JBS concluded the negotiations to acquire National Beef Packing Company, LLC
("National Beef"), Smithfield Beef Group, Inc. ("Smithfield Beef") and the Tasman Group, including
Tasman Group Services Pty Ltd and the Industry Park Pty Ltd ("Tasman"). With these acquisitions, JBS
enhances its global presence in the beef sector and strengthens
its leadership in the global market.

As part of JBS' globalization strategy, the acquisition of National Beef, Smithfield Beef and Tasman, in
the amount of US$1.68 billion, represents an important step in the conclusion of the Company's
business plan for the building of a sustainable beef slaughtering, production and trading platform in
the USA and Australia, process initiated in July 2007 with the acquisition of Swift & Co. With these
acquisitions, if realized, JBS intends to create synergy gains among all its companies in the USA,
resulting in annual cost reduction of around US$132 million.

Once the acquisitions are concluded, JBS will have more than 63,000 employees in the world, and 120
production and distribution plants located in Brazil, Argentina, USA and Australia, with annual revenue
of approximately US$21.5 billion. The daily slaughter capacity will be 79,200 heads of cattle,
equivalent to 10% of the global market, and 48,000 swine heads/day.

To conclude the acquisitions, a private placement of new shares shall be made, in the approximate
amount of R$ 2.55 billion, at an issuance price of R$ 7.07 per share.

The acquisitions will increase JBS' capacity to meet its clients' specific demands and shall generate
economies of scale and operational efficiencies, thereby adding value to its shareholders. After the
conclusion of these operations, JBS will focus on improving efficiency, capturing synergies and growing
organically with the strategic objective of creating value for its shareholders, customers, suppliers and
employees.

The conclusion of the three acquisitions (National Beef, Smithfield Beef and Tasman) depends on the
fulfillment of certain prior conditions, typical in such transactions, which include approval by
government authorities.

(For more information about the acquisitions, check the Fact Sheets presentation available in the JBS
Investor Relations website: www.jbs.com.br/ri).









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25
CONTACTS







Head Office
Avenida Marginal Direita do Tietê, 500
Cep: 05111-100 São Paulo ­ SP
Brazil
Tel: (5511) 3144-4000
Fax: (5511) 3144-4279
www.jbs.com.br
Sérgio Longo
Finance and Investor Relations Director
Tel: (55 11) 3144-4224
E-mail:sergiolongo@jbs.com.br
Rodrigo Gagliardi
Investor Relations Manager
Tel: (5511) 3144-4055
E-mail: rodrigogagliardi@jbs.com.br




















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26
FINANCIAL STATEMENTS ­ JBS S.A. CONSOLIDATED
In thousand of Reais
2007
2006
2007
2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents
109,221
54,375
323,709
68,629
Short-term investments
760,563
145,346
1,057,994
192,442
Trade accounts receivable, net
444,218
665,782
1,236,148
692,819
Inventories
604,225
563,935
1,511,595
657,504
Recoverable taxes
351,677
424,941
482,918
567,264
Prepaid expenses
4,388
1,936
44,468
2,956
Other current assets
30,612
43,494
102,910
68,938
TOTAL CURRENT ASSETS
2,304,904
1,899,809
4,759,742
2,250,552
NON-CURRENT ASSETS
Long-term assets
Credits with related parties
60,306
67,523
17,461
-
Judicial deposits and others
8,249
4,742
41,443
5,626
Deferred income taxes
16,251
16,050
23,758
23,492
Recoverable taxes
31,442
24,129
44,205
34,752
Total long-term assets
116,248
112,444
126,867
63,870
Permanent assets
Advances for investments in subsidiaries
-
35,051
-
-
Investments in subsidiaries
2,149,919
367,822
829,975
-
10
10
10
10
Property, plant and equipment, net
1,328,015
899,176
2,536,098
1,125,218
Intangible assets, net
9,615
9,615
195,513
25,187
Total Permanent assets
3,487,559
1,311,674
3,561,596
1,150,415
TOTAL NON-CURRENT ASSETS
3,603,807
1,424,118
3,688,463
1,214,285
TOTAL ASSETS
5,908,711
3,323,927
8,448,205
3,464,837
The accompanying notes are an integral part of the financial statements
JBS S.A.
Balance sheets as of December 31, 2007 and 2006
Company
Consolidated

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27
In thousand of Reais
2007
2006
2007
2006
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable
355,510
271,460
1,099,385
309,294
Loans and financings
858,975
579,128
2,384,836
653,638
Payroll and social charges
93,158
73,142
203,613
84,447
Declared dividends
17,465
-
17,465
-
Other current liabilities
50,294
41,545
70,536
51,886
TOTAL CURRENT LIABILITIES
1,375,402
965,275
3,775,835
1,099,265
NON-CURRENT LIABILITIES
Loans and financings
1,341,313
2,039,977
1,364,800
2,039,977
Deferred income taxes
59,642
62,665
99,755
62,665
Provision for contingencies
45,979
47,207
55,681
53,005
Other non-current liabilities
31,787
25,758
101,702
26,471
TOTAL NON-CURRENT LIABILITIES
1,478,721
2,175,607
1,621,938
2,182,118
MINORITY INTEREST
-
-
(4,156)
409
SHAREHOLDERS' EQUITY
Capital stock
1,945,581
52,524
1,945,581
52,524
Capital reserve
985,664
-
985,664
-
Revaluation reserve
123,343
130,521
123,343
130,521
3,054,588
183,045
3,054,588
183,045
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
5,908,711
3,323,927
8,448,205
3,464,837
-
-
The accompanying notes are an integral part of the financial statements
JBS S.A.
Balance sheets as of December 31, 2007 and 2006
Company
Consolidated







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28
In thousand of Reais
2007
2006
2007
2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
2,118,600
2,069,887
8,974,879
2,244,856
Foreign Sales
2,321,456
2,264,048
5,752,224
2,504,195
4,440,056
4,333,935
14,727,103
4,749,051
SALES DEDUCTIONS
Returns and discounts
(191,932)
(105,629)
(273,556)
(139,799)
Sales taxes
(252,282)
(272,097)
(311,976)
(307,570)
(444,214)
(377,726)
(585,532)
(447,369)
NET SALE REVENUE
3,995,842
3,956,209
14,141,571
4,301,682
Cost of goods sold
(2,915,674)
(3,028,650)
(12,609,093)
(3,248,543)
GROSS INCOME
1,080,168
927,559
1,532,478
1,053,139
OPERATING INCOME (EXPENSE)
General and administrative expenses
(74,188)
(107,792)
(275,594)
(154,387)
Selling expenses
(374,469)
(404,271)
(786,630)
(437,857)
Financial income (expense), net
(276,283)
(279,297)
(403,113)
(247,145)
Equity in subsidiaries
(276,591)
69,804
-
-
Goodwill amortization
(74,824)
-
(74,853)
-
Non-recurring expenses
(67,082)
-
(67,082)
-
(1,143,437)
(721,556)
(1,607,272)
(839,389)
OPERATING INCOME (LOSS)
(63,269)
206,003
(74,794)
213,750
NON-OPERATING INCOME (EXPENSE), NET
(171)
(791)
11,206
(2,569)
INCOME (LOSS) BEFORE TAXES
(63,440)
205,212 (63,588)
211,181
Current income taxes
(101,793)
(62,384)
(107,104)
(72,997)
Deferred income taxes
201
16,050
2,201
19,482
(101,592)
(46,334)
(104,903)
(53,515)
INCOME (LOSS) BEFORE MINORITY INTEREST
(165,032)
158,878
(168,491)
157,666
Minority interest (expense) income
-
-
3,459
1,212
NET INCOME (LOSS)
(165,032)
158,878
(165,032)
158,878
NET INCOME (LOSS) PER SHARE
(153.18)
3.02
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-operating
income (expense), net
Income (loss) before taxes
(63,440)
205,212
(63,588)
211,181
Financial income (expense), net
276,283
279,297
403,113
247,145
Depreciation and amortization
56,626
66,775
120,807
86,916
Non-operating income (expense), net
171
791
(11,206)
2,569
Equity in subsidiaries
276,591
(69,804)
-
-
Non recurring expenses
67,082
-
67,082
-
Goodwill Amortization
74,824
-
74,853
-
AMOUNT OF EBITDA
688,137
482,271
591,061
547,811
The accompanying notes are an integral part of the financial statements
JBS S.A.
Statements of income for the years ended December 31, 2007 and 2006
Company
Consolidated
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29






















































The forward-looking statements presented herein are subject to risks and uncertainties. These statements are based on the
beliefs and assumptions of our management, and on information currently available to us.

Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they
relate to future events and therefore depend on circumstances that may or may not occur. Our future operating results, financial
condition, strategies, market share and values may differ materially from those expressed in or suggested by these forward-
looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict.

Forward-looking statements also include information concerning our possible or assumed future operating results, as well as
statements preceded by, followed by, or including the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'` ''anticipates,''
''intends,'' ''plans,'' ''estimates'' or similar expressions.