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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

1
Operator:

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would
like to welcome everyone to JBS
s
2007 earnings conference call. Today we have with
us Mr. Joesley Mendonša Batista, CEO, and Mr. Sergio Longo, CFO and IR Officer.

We would like to inform you that this call and the slides are being broadcast on the
Internet at the C
ompanys website
:
www.jbs.com.br/ir
, and that the presentation is
available for download at the investors
information section.

Also, this event is being recorded and all participants will be in a listen-only mode
during the Companys presentation. After
JBSs presentation, we will initiate the
questions and answers session for analysts and investors only. Right after this session,
we will open the Q&A session for journalists, when new instructions will be given.

Before proceeding, let me mention that forward-looking statements are based on the
beliefs and assumptions of JBS management, and on information currently available to
the Company. They involve risks, uncertainties and assumptions because they relate to
future events and therefore depend on circumstances that may or may not occur in the
future.

Investors should understand that general economic conditions, industry conditions and
other operating factors could also affect the future results of JBS and could cause
results to differ materially from those expressed in such forward-looking statements.

Now, I will turn the conference over to Mr. Batista, the CEO. Mr. Batista, you may begin
your conference.

Joesley Mendonša Batista:

Good morning. Let us start this conference call talking about the main highlights of the
year 2007, as we mentioned on our last call when we were talking about the National
Beef and Smithfield Beef and the Tasman Group acquisitions. Through this acquisition
we concluded our North America and Australia investments, building a strong platform
of production and distribution in those countries. These acquisitions mean the end of
an investment plan, which started with the acquisition of Swift & Co. in July 2007.

As announced, it was realized the renewal of credit lines in the total amount of US$750
million when this refinancing was made with the same banks that financed us in the
first moment. We are highlighting this mainly because I think that the market made a
mistake when it thought that that was a bridge loan
--
that was not a bridge loan, we
said this several times and explained that this loan was part of our regular credit lines
in Brazilian banks. But as we said in our last call, talking about the results of the 3Q07,
on this call we would be most probably here with all of these debts already refinanced,
we are mentioning it just to confirm that we did what we said we would.

Mainly because of the Swift acquisition, we had a huge increase in our sales; we
increased our sales 256% comparing 2006 to 2007, observing that this represents only
six months of the Swift operation.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

2
Talking about the results, we had, on a consolidated basis, 4.18% in 2007 that was
14.2% the same result comparing 2007 to 2006 we were able to maintain the EBITDA
margin in the Mercosul operation; and we had a negative result in the JBS USA of
1.1% mainly because of our strategy in the beef division. On that moment we decided
that we understood that we had to be as competitive as our peers, so we increased our
volumes; and when we did that, our competitors tried to descend and to maintain their
market share, so they increased their volumes too, so we pressured the cattle price
and the beef price. As we will see some pages further, we had an irrational month with
strong negative results.

In the 4Q07, JBS Mercosul could recuperate its result; it had 15.1%; it represents our
ability to manage our margins. We had a difficult 3Q07 and we were able to recuperate
our sales and our margin in the 4Q07.

The pork division in JBS USA had the highest EBITDA margin in the past four years; in
the 4Q07 in was 6.8%; this is really a very good result to us following the strategy of
reducing cost. We had the same in Australia; we had the second highest EBITDA
margin in the past four years. When you look carefully, you realize that as we mention
that we were reducing cost, the pork division in the Australian division already runs well
and we decided just to keep it running as it was, and the best we did there was just
reducing cost. The opposite strategy that we had to implement in the beef division was
that we had to increase our volumes, make the competition much tougher and to have
the best scale to become as competitive as our peers.

So, actually we can see immediate returns in the beef division in the Australian
division, and we are seeing, in the beef division, the result of our strategy: in the first
moment it made losses but now we can see much better moments; and actually we
had the opportunity to acquire two other companies, and we are confident that in 2008
we will be integrating these companies in the beef side and making 2008 the year of
the turnaround of the beef division.
The Companys result was negatively impacted by the exchange variation on
investments made in the foreign subsidiaries. As we approved in our Board, we are not
hedging these investments, so we will always be affected by these results. But as it
does not have a cash effect, it will not be part of the calculation of dividends.

The acquisitions described in the recent event, allied with the positive atmosphere in
the global beef trade and the improved margin in the United States in 2008, created a
positive environment for JBS to achieve positive results this year. All we had to do to
turn around the beef business in the Unites States we have already done successfully,
and now we just need to wait for the Government to give us the authorization to
integrate all of these companies and take advantage of all the synergies.

In page number four, we have the consolidated sales and EBITDA margin. These
estimates for 2008 need to be reviewed, because they are not considering the recent
acquisitions of National, Smithfield and Tasman, and not even considering Inalca and
Montana businesses. And as we do not know exactly when we will have the DOJ
authorization, the antitrust authorization, we will not give a new guidance of sales and
EBITDA margin because if it is three months later or earlier, it really makes a huge
difference in sales and in the EBITDA projection.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

3
As we see here, we have been having a huge growth in sales, and our challenge now
is to make money and increase our EBITDA margins. And we are confident we have all
the needs already taken care of. On a consolidated basis, we had 4.2% in EBITDA
margin.

As I mentioned before, we had a negative result, mainly impacted by the depreciation
in the USD and in the Argentinean Peso. The net loss in 2007 was affected by the
exchange rate variation; the cost of investment is approximately R$160 million. The
USD declined 8% against the Real and the Argentinean Peso fell roughly 20% against
the Real.

These results reflect the period of accommodation that we saw in the United States
market in the 4Q07, after JBS landed in that country, after JBS increased its
slaughtering capacity mainly through the second shift in Greeley and pushing more
volumes in the existing factories, which were working with 4,500 heads per day we
pushed to 5,500; others that were on 5,000 we pushed to 6,000 per day. So, it really
squeezed the margins, mainly because our competitors did the same at the same time.

On page number six we see our debt levels that are 3.7x; not because the debt
increased but because the EBITDA margins did not increase in the same pace.

On page number seven we start seeing our consolidated numbers of production and
numbers of sales. We can see that we have 46% in Beef USA. 18% in Pork USA; so,
roughly 64% of our total production nowadays is based in the United States. Then we
have the beef in Brazil with 19%, beef in Australia with 15%, beef in Argentina with 2%.
About our sales distribution, we used to have 50% in the export market; we closed
2007 with 1/3 of our sales in the export market; it represented 32% even after the Swift
acquisition.

On page number eight we can see the main countries where we are selling our
exports. On a pro forma basis, we had US$3.8 billion on exports. This number does not
considerate these recent acquisitions. Our main destination is Japan with 19%, Europe
14%, Mexico 12%, United States 10%, South Korea 8%, Russia 7%, Canada 5%,
China 5%, Hong Kong 3%, Taiwan 3% and others 14%.

Talking about South Korea, in the middle of this month, April, we may be hearing good
news from South Korea about buying beef from the United States. The president of
South Korea will be in the United States discussing some items and one of the items
they will be discussing is to fully open the South Korean market to the United States.
We are very anxious with this news. We think it will be very good news to our
Company.

JBS Mercosul was able to keep growing. We were able to maintain the percentage of
14.2 in EBITDA margin, even with all the cattle price increasing and all the challenges
that we had in 2007 and it again proved our ability to manage with all of these
challenges.

On page number ten, we can understand better the results of the three strategies. The
strategy that we implemented in the pork and in the Australian beef division that was
mainly to reduce cost; and in the beef of the United States that was based on
increasing volumes and gain in scale and gain in market share.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

4

The result of this was that in the pork division and the Australian division we had
immediate results with one of the best results in the pork side and one of the best
results in the Australian business in the last four years. And in beef USA, as a disease,
first it makes worse to then make better. We think that we implemented a very strong
strategy and today I became very confident that we made the right decision.

We were able to implement all the steps we thought we could implement. As you will
see in the next pages, we can look at the data, the United States beef market is much
better in the 1Q08 and it proves that we really took the right way.

On page number 11 we can see in your right-hand side is the USD per head of profits
or losses, and we can see that since Hicks Muse announced that they would sell that
company, the United States market started becoming more tough, mainly because all
the competitors started increasing their volumes, trying to gain market share during this
period when Swift company was in a transition period.

And you see clearly from July ahead how the margins became much worse mainly
because as we increased our volumes
--
that was not something expected from the
market, the market was prepared to see the new player reducing production, and that
was not what we did; we did exactly the opposite and our competitors tried to defend
their position, they increased too.

When I look at this chart, I become much more confident how our ability would be to
make this division in a profit basis, in a profit position, because we can observe how
sensitive the market is, how it can come to almost US$100 losses and how fast it can
come from US$0 to US$10 profit per head. So, again, this chart proves how sensitive
this market is when you talk about the capacity of the industry, how it can come from a
bad result to a good result.

In the chart number 12, just to reassure our confidence about how we will be able to
come to 3% of profit. When we look at the beef division, we had a cost about
increasing production in Greeley when we started up the second shift, we had more
than US$30 million in the start-up period. And we considered that more than US$90
million of losses came from the market that all industries increased their capacity and,
as we saw in the last chart, squeezed the market in an irrational way.

But, luckily for everybody, I think that in the end everybody was in a good position
because the margins came to a positive place very fast. The cost, when we analyze
each plant and if we do not consider the cost of implementation of the second shift in
Greeley, we can see all of our other plants working as efficiently as the market. So,
now we can realize that we are working as efficiently as the market, as all of our peers.

As 2007 was a year of expanding our business, 2008 will be a year in which we will be
integrating our business and taking advantage of all of these integrations, all of these
investments that we did in the United States, Australia, Italy, Russia, in Africa through
Inalca and Montana, and we are really confident that we will have a very good 2008.

We will open now to questions and answers. This was the presentation, and we can
start the questions.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

5
Eric Ollom, ING:

Hi. Good morning everybody. I would just like to talk to you about the guidance that you
released in January. I understand you cannot reflect the proposed new acquisitions in
guidance, but can you at least tell us whether you can affirm or perhaps adjust, one
way or the other, based on the current operations that you have in Brazil, Argentina,
Australia and United States, whether the EBITDA guidance of R$1.275 billion is still
valid, given what has happened in the United States beef in the 1Q? Thank you.

Joesley Mendonša Batista:

Mainly because as all of these acquisition will take to JBS sales of roughly US$9 billion,
if the anti-trust, if the DOJ authorizes us to buy these companies in the next month or in
the next six months, it really makes a huge difference. So that is the main reason that
we did not give new guidance.

We still have the guidance, we are still following the guidance that we gave to the
market.

Eric Ollom:

OK. I guess for the 1Q, I think the market really anticipated 4Q out of the United States
beef sector was going to be poor. My data assures that margins have gone positive as
well, in the cattle and beef markets recently. Can you just give us some sort of idea
whether the 1Q results out of the United States, at least what you have seen, are
supportive of the guidance that you gave in January?

Joesley Mendonša Batista:

Yes, we are following the guidance. The guidance was really considering that the beef
business in the United States, in the 1Q, was not making a huge amount of money, but
it does consider that it was not having losses anymore. And that is what we are seeing
today.

Eric Ollom:

Thank you.

Denis Parisien, Santander:

Good morning, gentleman. Thanks for the call. I was wondering if you could give us a
little bit more color on financing. I think you mentioned in the press-release that the
US$750 million refinance, some were at two years, some were at five years. I was
wondering if you can tell us how much was in each maturity bucket and what the cost
of the financings was.

And are you still planning on financing with debt approximately US$400 million or
US$500 million of the latest acquisitions? Could you mean that they are approved? I
guess we saw that you got the equity piece done for approximately US$1 billion. Thank
you.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

6
Joesley Mendonša Batista:

About the new acquisitions, you have an amount of roughly US$1.7 billion; we are
issuing US$1.5 billion, not one US$1 billion; US$1.5 billion. So, we are expecting to
increase our debt roughly in US$200 million. Considering that we are taking, with all of
these companies, roughly US$200 million of EBITDA margin, we are using only 1x of
leverage, so we will be decreasing our leverage.

The second answer is about the refinancing. As we said in the last calls, these are
loans in Brazilian banks, based on our regular credit lines that we have here. All of
these loans were refinanced to be paid in a schedule from two to five years. So, we
have a grace period paying only interest, then we start paying the principal.

But actually, again, these are a part of our regular credit of lines. I can suppose that, as
we reduce our risks on these banks, we have ability, if we want, to have a new loan,
because these are a part of our regular credit of line. The cost of these lines is the
usual cost, LIBOR plus something, aligned to what the market is working today in these
kinds of loans. And, again, just to confirm, as we said, the market in my opinion made a
big mistake thinking that these were bridge loans and these were not, and we proved
that these were not bridge loans mainly when we refinanced in the same bank that
gave us the loan. This is part of our regular credit of line.

Denis Parisien:

Thanks you.

Ruth Mazzoni, Santander:

Hi, everyone. If you had to choose in the United States between the acquisitions, a sort
of a ranking, which one is most important to you? Would it be National Beef? That is
my question.

Joesley Mendonša Batista:

Good question. Actually, these investments are part of a strategy of investments that
started since we started acquiring Swift & Co. What really makes sense is the three
together. If we had to choose, we would not choose. Our plans were to acquire Swift
and, as National Beef and Smithfield Beef were our main competitors in terms of the
Swift acquisition, we supposed by then that if they do not buy Swift they would be
selling.

And that was our bet and that was what really happened. Both companies have their
advantages; Smithfield comes with four slaughterhouses and the biggest feedlot
company in United States; all the ten feed yards are really close to our factories, so it
makes an important integration with our business. When we look at National Beef, it
has one of the best managements in the beef business, it has the cage ready facilities.

And this is the main reason that we bought all together; not one after another.
Because, in our mind what really made sense was buy them both together and
integrate with Swift business.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

7
Ruth Mazzoni:
But if I said ,,no, you cannot consolidate everything. Would you pick, would you walk
away or...Because, if one of the three options decided to say ,,no or ,,yes or ,,yes, but
you have to sell certain things?

Joesley Mendonša Batista:

Are you talking about the antitrust?

Ruth Mazzoni:

Yes.

Joesley Mendonša Batista:

OK. As we made many consultations with the best lawyers of United States, what the
antitrust, the government should suggest was to divest in one factory or two factories
--
not to not do the deal of National Beef or not to not do the deal of Smithfield, or in
Five Rivers. This is the historical scenario.

So, after saying this; first, all of us are confident that as there is no overlapping in the
factories, we accorded that we would be able to buy all the factories. In the worst case
scenario, the antitrust should suggest us to sell one factory, for example, not to not
conclude the National Beef or the Smithfield beef.

Ruth Mazzoni:

OK. Thank you very much.

Jose Bernal, Standard NY Security:

Good morning, everybody. Just a quick question on the Inalca acquisition. If you can
please give us more details about the timeframe condition of this transaction?

Joesley Mendonša Batista:

About Inalca, we bought 50%. Inalca and Montana; actually they are two companies,
Inalca and Montana. They were 100% owned by Cremonimi, which is a public
Company, too. They had 100%, they sold 50%, they will be in charge of the operating
side; we will be in charge of the admini
strative side in that business. That was a 600
million in the enterprise value. They have roughly 300 million of that, so there is 300
million in equity and we paid 150 million because we bought 50%. I do not know if this
is the question.

Jose Bernal:

Basically, I want to know if you bought it with some cash and loans or what was the
proportion.

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4Q07 Results
JBS
March 31
st
, 2008

8
Joesley Mendonša Batista:

We bought through cash.

Jose Bernal:

OK. Thank you.

Alex Robarts, Santander:

Hi, everybody. I guess I wanted to ask you a little bit about what you are seeing on the
cost side. Perhaps if you could give us color on the cattle cost trends in Brazil and in
the United States. What kind of guidance could you give us as you think about cattle
cost on average this year in those two markets versus last year?

Joesley Mendonša Batista:

I am not sure if I understood your question. Could you ask again? About the cattle
price?

Alex Robarts:

Your cattle acquisition costs, your cost of buying cattle this year. What kind of range or
what kind of guidance could you give us for the United States and Brazil as compared
to the level that you saw last year?

Joesley Mendonša Batista:

OK. Let me talk a little bit about the big picture of the beef business on a global basis.
On a global basis, the beef business and the beef prices are going up in a very fast
pace; we are seeing in Europe, all around the world, all the beef prices are going up
very fast. If we consider that, for example, in April, we will be able to sell beef to South
Korea from the United States, we can see the prices in the United States going up; the
prices of beef.

If Japan follows South Korea, we can see the prices going much higher. If we have a
confirmation of all of these scenarios, we will see the cattle prices going up. But,
actually, in our business, more important than cattle price is the difference between
cattle and beef, the spread.

Firstly, the spread is affected by the slaughtering capacity that we have in the industry;
then we have the sales, if we are exporting or not; and then we have the corn price.
The way we are seeing, we expect that the United States industry, our peers, realize
that we are strong players, we will be playing by strong way in the United States and I
think they realized this. So they stopped and we stopped too pushing the market to try
to slaughter a number of cattle that even if there is no cattle and even there are no
consumers to eat this beef. So, we have made an irrational competition.

On the other hand, when we look to the global beef price, I am seeing the beef price
increasing in Europe, in Russia, all around. And I think that the beef price will go up in
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

9
the United States too. So, I think two things: beef price will go up and the spread will be
better.

Alex Robarts:

And in Brazil?

Joesley Mendonša Batista:

In Brazil, what we are seeing, as I have already said, we are seeing a new scenario;
Russia approved 100,000 tons of new quota to buy beef from Brazil. The price of the
beef that we used to sell to Russia, six months ago used to be US$2 thousand per ton,
today is US$3.6 thousand; we are already talking about US$3.8 thousand; we are
seeing all the prices all around the world going up; China, through Hong Kong, is
buying much more beef, all the beef prices are going up.

So, we are increasing our sales without increasing the volumes, just because of the
beef price, the relative beef price. The companies that work only in the fresh beef side,
I think will have a very big challenge in 2008, mainly because Europe blocked our sales
from Brazil to Europe, so I think they will have tough days in the fresh beef side. I think
that, in a medium term, JBS will be able to have good opportunities in Brazil, again.

Because, as I mentioned, as I think, in my mind, all the prices, all the businesses here
and in the United States, everybody was making a lot of money. So we were in a very
good moment, so all of the prices here were very high. And mainly we will have good
opportunities in the next period.

Alex Robarts:

Would you agree with what one of your competitors said that the average cattle price or
the average cost for Brazilian cattle would be up about 15%? Do you think for JBS in
Brazil that is a safe assumption, that your cattle cost might be up about 15% this year?

Joesley Mendonša Batista:

I think that all of us are living a new period. We have never sold beef on these prices.
My personal thought is that there is something very important happening in the globe
that is the Chinese, Indian, and Brazilian economies growing much faster than we
could expect three years ago. It made the crude oil come to higher than US$100.

We cannot disregard; I think we need to erase from our memory the commodities
prices, because we have a new scenario. So, when I see the cattle price here, for
example, by US$40 per arroba, which is our metric here, I do not get scared about this,
because the corn price, the land price, the crude oil, all the commodities prices are so
different that I prefer to erase my memory about the last prices, that we used to see in
the last twenty years.

Alex Robarts:

Thank you.
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

10
Pedro Herrera, HSBC:

Good morning. One quick question; you touched on the European issues with the
export of Brazilian beef. Can you please bring us up to date on what is going on in that
realm and what do you expect between now and the end of 2008?

Joesley Mendonša Batista:

It is my view: I am not the owner of the reality, I have no certainties about this; it is a
very personal view. Europe is asking for something that Brazil does not have. For
Brazil to follow Europe instructions, it is not so easy. It would demand not one month,
two months; it would demand a long period.

On the other hand, Europe is imposing new restrictions exactly in a moment when all of
the other markets are not only removing restrictions, but all of the other markets are
coming here and asking for more beef. So, when we see Russia increasing its
purchase, when we see Hong Kong doubling again the volume; everybody is
increasing its volume. So, Europe decided to do something in a very bad moment
because we do not have beef to supply and the buyer is asking for new requirements.

So, the Brazilian farmers do not have, today, the volume to supply all the beef that the
world is asking for. And then we see a customer, Europe, asking for new papers, new
proceeds. We are really not working too much to follow the European restriction, to lift
this. After saying this, I think it will demand a longer period than imagined in the
beginning.

Pedro Herrera:

Thank you.

Eduardo Vieira, Credit Suisse:

Hi. Could you please comment on the outlook for Argentina in line with the very strong
inflation there and, at the same time, with price control. I wonder how margins should
go in 2008, if you could comment on that. Thank you.

Joesley Mendonša Batista:

We were really having tough days last week, with the government and the farmers
and... Sincerely, I do not know. I am a person who always follows and always believes
in a free market. I am confident that there is no government that can control prices just
by controlling prices, just fixing prices.

There is one week of discussions in Argentina, and we are waiting for them for what
the solution will be. We do not know about the solution.

Eduardo Vieira:

So, the way margins are right now, if things do not change do you expect a decline in
profitability in Argentina?
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st
, 2008

11
Joesley Mendonša Batista:

Actually, the margins are really big; we are making a lot of money there. But last week
the population went to the streets and blocked the streets, the roads. So, we had to
stop delivering the goods. And we are waiting for what they will decide.

I think that they will come to an agreement; they need to have an agreement.

Eduardo Vieira:

Thank you.

Isabela Bacchi, JPMorgan:

Good morning. I just have a follow up question on the acquisition of Inalca. You
mentioned you are paying
150
million for a 50% stake, and that the Company has
about 300 million in debts, which you will consolidate
50%, as far as I understand. My
question is if the 150 million for the equity had a
lready been disbursed until
December, or if you still have to do it. And when do you expect to start consolidating
the 50% stake? Thank you.

Joesley Mendonša Batista:

We made the closing in the first day of March, and we will be consolidating these
numbers now, in this 1Q08.

Isabela Bacchi:

OK. So, these numbers of December do not include the payment yet?

Joesley Mendonša Batista:

No.

Isabela Bacchi:

OK. Thank you.

Eric Ollom, ING:

I just have a question back to the United States. The blueprint of Smithfield, Swift and
NBP to me makes a lot of sense; the key is the integration of that. Swift has always had
the reputation of having poor managers, which was one of the reasons why it was the
weaker player; and Smithfield and NBP had the reputation of having the better
managers. Can you just give us some sort of sense, if you can, of where discussions
are among various senior managers of the new target companies about retaining them
and getting them to buy into an overall vision of what you want to achieve in the United
States, if so?

Because the market is concerned about the drain on JBS management of all these
plants; obviously having some good managers in the United States from these
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March 31
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companies would be a nice way to alleviate that. If you could just comment on where
that all stands. Thank you.

Joesley Mendonša Batista:

We have already announced to our team that who will be running the JBS beef division
is the guy that is the principal in National Beef. So, that is Tim, he will be the CEO of
the JBS beef division in the United States, integrating Swift and National Beef.

Eric Ollom:

Is that Tim Klein?

Joesley Mendonša Batista:

Yes, Tim Klein.

Eric Ollom:

Excellent.

Joesley Mendonša Batista:

He will be the one in charge of the JBS USA beef division. He will be with us. And the
Smithfield Beef operation, which has its own operation, will be with the one that runs
today, which is making good results. They will be with us too, in the first moment. And
the Five River management, we have already arranged with them that they will be in
charge of the business, they will keep running the business. There is a very good guy
there that worked for more than 17 years, a young guy that started in that company
since the beginning and now is the president of operation; he will be there with his
team running the business.

So, actually Five River keeps its management, Smithfield keeps its management and
Tim Klein will run the JBS and the National Beef division.

Ana Mano, Debwire:

Good morning. I just want to clarify something that you said in the Portuguese
conference call. You mentioned that the Company is raising US$1.5 billion; you said
that US$1 billion is coming from the fund that has been set up between BNDES, two
Brazilian pension funds, and JPMorgan. Where will the other US$500 million come
from? Thank you.

Joesley Mendonša Batista:

The other parts will mainly come from J&F, that is our holding, and the minorities
exercising their rights. If they do not exercise their right, our holding company will invest
all the money.


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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

13
Ana Mano:

OK, I just wanted to make sure. Thank you.

Steve Kay, Cattle Buyers Weekly:

Good morning. Really, most of my questions have been answered. Thank you for being
very open and forthright about everything that you are doing. I want to focus on value
added United States beef and pork; Swift pork, as you know, is regarded as one of the
best fresh pork market is the United States. I wonder if you could tell me what
percentage of your pork sales would be regarded as value added, and how much you
anticipate you could increase that percentage this year or next year. And then the
same on the beef side; what percentage
--
I would imagine that Swift beef has
probably a fairly small percentage of value added
--
in what ways will you increase that
percentage of value added on the beef side?

Joesley Mendonša Batista:

Actually, through the National Beef operation we are coming with three value added
plans: two based on case ready and one to sell to restaurants, through portion control.
We will be focused, on the first moment, on integrating all the businesses: National
Beef, Smithfield and Five River.

Value added, for sure, is always something that we are looking for to increase our
value added sales. We think that through the value added facility we may have some
opportunities to integrate this with the pork side; but actually this will not be our first
concern. In the first moment, we expect to keep the pork business running as it is
running; and it is running very well. These are our plans for 2009, to start processing
further, adding value; these are not plans for 2008.

Steve Kay:

Thank you.

Operator:

There appear to be no further questions. I would now like to turn the conference back
over to Mr. Joesley Mendonša Batista, CEO, for his final considerations.

Joesley Mendonša Batista:

Thanks everybody for your time. 2007 was a very special year to us, mainly because
we could implement a very strong strategy that started in the IPO, then with some
acquisitions here in Argentina, some acquisitions and some brown fields here in Brazil.
We had an opportunity with the Swift acquisition and actually we had a big plan that
finished with these acquisitions of National Beef and Smithfield Beef, and Tasman
Group in Australia, finalizing our 2007 acquisition plans.

2008 will be a year of integrating, making profit; and we are not looking for new
acquisitions in 2008. We will be focused on integrating these businesses. We think that
we will have very good opportunities from 2009 ahead in Brazil, again, mainly in the
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Conference Call Transcript
4Q07 Results
JBS
March 31
st
, 2008

14
fresh beef side. And we are now operating the J&F holding, we will be operating with
50-51% of the total shares; we will be operating with three very big and strong
investors, which are BNDES, FUNCEF and PETROS, which are the funds that are
supporting us on these new acquisitions. We will keep with a big free float stock in
Bovespa.

We are reading some researches on some banks that, after one year, we are already
being considering to be part of Ibovespa, the "═ndice Bovespa", that makes u
s very
proud; it means that the volume of our stocks, that are traded, we are having a very
good volume. And we are confident that we built the biggest beef company, the most
globalized that will keep having important amounts of its sales in export sales; now we
are ready to sell to 100% of the globe.

I am very proud to be a part of this; and I will thank everybody, thank the investors,
thank all of our employees, thank all of our customers, all of our suppliers, for trusting
us and our strategy. I am confident that we will be much further together.

Thank you, everybody, and have a good day.

Operator:
This thus concludes todays presentation. You may disconnect your lines, and have a
wonderful day.























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