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IR Contact:
José Paulo Macedo
Investor Relations Director
André Menezes
Investor Relations Manager
Email: ir@jbs.com.br
Phone: (11) 3144-4055
Website:
www.jbs.com.br/ir
3Q07 Conference Call
Date: Thursday, November
8, 2007
> Portuguese
12h30 (Brasília)
09h30 (US EST)
Tel: +55 (11) 4003-9004
Código: JBS

> English
14h30 (Brasília)
11h30 (US EST)
Tel.: +1 (973) 935-8893
Código: 9408522
JBS S.A. reports consolidated 3Q07 results
including JBS USA, Inc. (formerly Swift Foods Co.)
São Paulo, November 6, 2007 ­ JBS S.A. ("JBS") (Bovespa: JBSS3), the world's largest beef
producer and exporter, announces today its results for the third quarter of 2007 (3Q07) and the first
nine months of 2007 (9M07).
The financial and operating information herein is presented on a
consolidated basis in BR GAAP and in Brazilian real (R$). The accounting statements for the quarter
ended September 30, 2006, presented for the purpose of comparison, were prepared excluding the
asset and financial situations and 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 providing comparative
information on the Company's operating performance.
The consolidated information and statements presented in this report also include the results from its
subsidiary JBS USA, Inc. ("JBS USA"), formerly Swift Foods Company ("Swift"), which was acquired on
July 11, 2007. The results of JBS USA presented herein consider the 75-day period from July 11 to
September 23, 2007.
Conclusion of the acquisition of Swift Foods Company on July 11,
2007, making JBS the world's largest beef producer and third largest
pork producer in the United States;
Conclusion of the private placement of 227,400,000 shares totaling
R$1,853,833,020.00, resulting in a total of 1,077,400,000 shares
issued by the Company;
Entry of BNDESPar as an important shareholder of JBS, holding
12.95% of the capital stock;
Continued focus on growth and consolidation in the Mercosul region,
with (i) continued investments in the expansion of the slaughtering
capacity and in the production of higher value-added products in
Brazil; and (ii) expansion in Argentina through the acquisition of
meatpacker Col Car for US$20.3 million;
Start-up of the expanded frozen and cooked beef unit in Andradina
and of the new container terminal for exports in Cubatão, both in the
state of São Paulo, Brazil;
Continued focus on improving the operational performance of JBS
USA;

3Q07 HIGHLIGHTS
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CONSOLIDATED INCOME STATEMENT ­ 3Q07
Introduction
On July 11, 2007, JBS concluded the acquisition of Swift Foods Company (now JBS USA), the third
largest beef and pork producer in the United States and the largest beef exporter in Australia, with
revenues of US$ 9.5 billion for the fiscal year ended May 27, 2007.

The acquisition of Swift Foods Company:
Creates the world's largest beef producer and exporter;
Consolidates JBS as a global company in the animal protein industry;
Establishes production and distribution bases in the world's largest beef producing and
consuming countries;
Expands the scope of the Swift brand, given that JBS already held its rights in Brazil and
Argentina;
Allows for greater geographic and product diversification with the pork operations in the United
States;
Creates synergies within the group's commercial areas, particularly from the opportunity to
increase sales of processed products from Brazil and Argentina; and
Provides the opportunity to add value to the Company and its shareholders through the
improvement of the operating performance of JBS USA.
Given the final structure of the acquisition, JBS USA was capitalized with US$950 million from the
private placement of new shares concluded in September, which already represented an important
step in strengthening the Company's capital structure and competitiveness in the markets in which it
operates.

Accordingly, our short-term strategy is centered on recovering the operating and financial performance
of JBS USA through the implementation of several initiatives, without deviating from focusing on JBS'
consolidated growth.
Following the acquisition of JBS USA, various areas were identified that presented opportunities for
improving the Company's operating results, as described below:
Improve margin per head through improved yields (rear, forequarter and ribs de-boning
processes) and the development of new markets;
Increase in volumes through the implementation of a second shift at the Greeley plant and an
increase in the utilization rate of the plants in Grand Island, Cactus and Hyrum as a way to
dilute fixed costs at the plants;
Focus on cost reductions: fixed (insurance, consulting and information technology), variable
costs and freight and storage costs per head (higher utilization rates);
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Lower administrative expenses: reduction of management layers, separation of pork and beef
divisions in the United States, and optimization of the sales team.

Seventy-five days after the acquisition of the Company by JBS, many of the initiatives described above
have been implemented, such as: (i) reduction in selling, general and administrative expenses,
eliminating positions unnecessary to move the business forward or positions that already existed in the
structure of JBS S.A.; (ii) reduction in annual insurance costs through renegotiation of existing
premiums and deductibles, maintaining all of the insurance policies required for the adequate
continuity of the business; (ii) elimination of annual costs with outsourced services from professionals
and consultants, terminating contracts signed by the previous controlling shareholder.
In addition, JBS USA is also developing and implementing initiatives that seek to improve the
operating efficiency of the plant operations, whose benefits have yet to be fully captured. Although
fixed costs have already been reduced by the de-layering of management at the plants, volume
increases and yield improvement will only be captured gradually with the evolution of the second shift
at the Greeley plant and the recovery in employee productivity at the Cactus plant following the
immigration inspection of December 2006. The Company believes that these benefits will continue to
be captured as the second shift of the Greeley plant reaches its full-capacity and newly hired
employees are adequately trained.

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 a 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-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 conclusion of the Swift acquisition by JBS, the company's new management decided to (i)
change its name from Swift Foods Company to JBS USA, Inc., (ii) change 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 a weekly basis, as described above, and (iv) change the external auditing 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 refer to JBS USA (formerly Swift Foods Company and
holding company of the entire group in the United States and Australia) and are being converted from
US$ into Brazilian Real and from US GAAP into BR GAAP.

The accounting practices adopted at JBS USA (US GAAP) were adjusted to BR GAAP, according to the
following differences:
Finished goods inventories were previously valued at market price and were adjusted to
average production cost method;
Permanent assets include amounts related to intangible assets and fixed assets goodwill,
calculated at the moment of the acquisition (purchasing accounting) and adjusted to reduce
shareholder's equity;
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For derivatives designated as a hedge and used to hedge an anticipated transaction, changes in
fair value of the derivative are deferred in the balance sheet and were adjusted to the income
statement;

Exchange Rate Variances from Investments made in Foreign Currencies and Goodwill

Financial income for the 3-month and 9-month periods ended on September 30, 2007 were negatively
impacted by the exchange variance from permanent investments made in foreign currency, mainly due
to the high devaluation of the U.S. dollar and of the Argentine peso related against the Brazilian real.
The impact of this exchange variance in the consolidated financial income is approximately R$67.0
million in the 3-month period and R$116.0 million in the 9-month period ended on September 30,
2007. It is important to highlight that unrealized exchange rate variances do not generate a cash
effect for the Company, impacting net income, but not affecting EBITDA.
With the acquisition of Swift Foods Company, JBS recognized a goodwill of R$839.181, based on the
expectation of future profits. This goodwill will be amortized as long as such profits are earned, in a
period not exceeding 10 years.

Considering the proportion of the investment in JBS USA and the potential impacts that this unrealized
foreign currency variance has on the Company's net income, and consequently on the amounts
distributable to shareholders as dividends, the Board of Directors of JBS met on November 1, 2007 and
resolved that exchange rate losses from investments made in foreign currency and future amortization
of goodwill in JBS USA are permanently excluded for dividend calculation purposes. This decision will
be deliberated and voted in and upcoming Extraordinary Shareholders Meeting.

Consolidated Income Statement
The table below shows the consolidated results of JBS S.A. ("JBS") in BR GAAP and in Brazilian real
(R$), including the results of its U.S. subsidiary JBS USA during the 75-day period from its acquisition
on July 11, 2007 through September 23, 2007.
R$ million
3Q07
%
3Q06
%
2Q07
%
9M07
9M06
Net Sales Revenue
5,233.6
100.0%
1,234.6
100.0%
1,171.2
100.0%
7,490.9
3,056.6
Cost of Goods Sold
-4,744.5
-90.7%
-953.5
-77.2%
-890.3
-76.0%
-6,463.3
-2,329.0
Gross Margin
489.1
9.3%
281.2
22.8%
280.9
24.0%
1,027.6
727.5
Selling Expenses
-257.5
-4.9%
-90.0
-7.3%
-106.6
-9.1%
-464.0
-272.5
General and Adm. Expenses
-101.0
-1.9%
-39.7
-3.2%
-27.9
-2.4%
-149.4
-76.0
Net Financial Income (Expenses)*
-189.0
-3.6%
-89.9
-7.3%
-72.7
-6.2%
-318.7
-203.5
Equity in Subsidiaries
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0
Initial Public Offering Expenses
-1.7
0.0%
0.0
0.0%
0.0
0.0%
-52.2
0.0
Amortization of Goodwill
-0.4
0.0%
0.0
0.0%
-0.9
-0.1%
-1.3
0.0
Operating Income
-60.5
-1.2%
61.6
5.0%
72.8
6.2%
42.0
175.5
Non-Operating Income
5.0
0.1%
0.2
0.0%
0.8
0.1%
5.8
-5.5
Taxes and Social Contribution
-25.5
-0.5%
-21.8
-1.8%
-35.7
-3.0%
-80.8
-65.7
Minority Interest
2.7
0.1%
0.0
0.0%
0.9
0.1%
4.1
0.0
Net Income
-78.3
-1.5%
40.0
3.2%
38.7
3.3%
-28.9
104.4
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(*) The net financial result and, consequently, the net income for the 3Q07, were affected by exchange rate variances from investments made in
foreign currencies in the amount of R$67.0 million for the 3Q07 and R$116.0 million for the 9M07. Currency variances do not have a cash effect on
the Company, and as such, did not impact EBITDA for the period. Excluding this effect, the Company would have registered a net loss of R$11.3
million for the 3Q07 and a net income of R$87.1 million for the 9M07.

For the 3Q07, JBS' consolidated EBITDA totaled R$174.9 million compared to an EBITDA of R$170.3
million for the 3Q06. Consolidated EBITDA margin for the period was 3.3%, reflecting a 13.1% margin
reported by JBS (excluding JBS USA) and a 0.1% margin reported by JBS USA.
A large portion of the variances presented in the consolidated results is attributable to the effect
generated by the acquisition of Swift Foods Company by JBS. In the report, the operational results of
JBS, as well as those of JBS USA, will be commented independently, as to facilitate the analysis and
comparability of the figures and to preserve historical information provided since the Company's initial
public offering.
Consolidated Debt Level
R$ million
3Q07
2Q07
Var.%
3Q07/2Q07
Total Debt
3,949.5
2,229.0
77.2%
Cash and Marketable Securities
1,621.0
816.4
98.6%
Total Net Debt
2,328.5
1,412.6
64.8%
Net Debt/EBITDA
3,3X
2,3X

The Company's gross debt is primarily composed of financing lines with the Brazilian Development
Bank (BNDES), export financing contracted with financial institutions, and Notes (Reg. S and 144A)
with face value of US$575 million due 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). Additionally, JBS USA gross debt includes loans totaling
approximately US$815 million, of which US$750 million consist of bridge loans contracted as part of
the capital structured used for the Swift acquisition. These bridge loans have an average interest rate
of Libor plus 1%, with US$100 million maturing in January/08 and the remaining in June and July of
the same year.






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ANALYSIS OF 3Q07 RESULTS ­ JBS S.A. (EXCLUDING JBS USA)
Main Operational Indicators (excluding JBS USA, Inc.)
R$ million
3Q07
3Q06
Var.%
3Q07/3Q06
2Q07
Var.%
3Q07/2Q07
9M07
9M06
% Chg.
9M07/9M06
Net Sales Revenue
1,315.5
1,234.6
6.5%
1,171.2
12.3%
3,572.8
3,056.6
16.9%
Domestic Market
511.6
364.4
40.4%
487.9
4.8%
1,459.7
1,117.8
30.6%
Exports
803.9
870.2
-7.6%
683.3
17.7%
2,113.2
1,938.8
9.0%
Gross Profit
309.6
281.2
10.1%
280.9
10.2%
848.1
727.5
16.6%
Gross Margin
23.5%
22.8%
24.0%
23.7%
23.8%
Net Income
-78.3
40.0
-295.6%
38.7
-302.3%
-28.9
104.4
-127.7%
Net Margin
-6.0%
3.2%
3.3%
-0.8%
3.4%
EBITDA
171.9
170.3
0.9%
165.2
4.0%
493.3
430.5
14.6%
EBITDA Margin
13.1%
13.8%
14.1%
13.8%
14.1%
Slaughtered Cattle
1
929.3
935.7
-0.7%
947.0
-1.9%
2,762.7
2,583.2
7.0%
Sales Volumes
2
Domestic Market
215.6
166.8
29.2%
210.0
2.6%
614.7
496.6
23.8%
Exports
111.0
114.9
-3.4%
112.2
-1.1%
326.8
281.7
16.0%
Total Volume
326.6
281.7
15.9%
322.2
1.4%
941.5
778.3
21.0%
1
In thousands of heads
2
In thousands of tons
(*) The net financial result and, consequently, the net income for the 3Q07, were affected by exchange rate variances from investments made in
foreign currencies in the amount of R$67.0 million for the 3Q07 and R$116.0 million for the 9M07. Currency variances do not have a cash effect on
the Company, and as such, did not impact EBITDA for the period. Excluding this effect, the Company would have registered a net loss of R$11.3
million for the 3Q07 and a net income of R$87.1 million for the 9M07.

Cattle Slaughter Volume
In the 3Q07, the volume of cattle slaughtered declined by 0.7% to 929 thousand heads, compared to
936 thousand heads in the same period last year. Compared to the 2Q07, cattle slaughter volume
declined by 1.9%, while in the 9M07, volume increased by 7.0% in comparison to the 9M06. The
decline posted for the quarter is mainly due to lower slaughter volume in Brazil, as a result of the off-
season period for cattle supply that generally occurs more intensively in the third quarter of each year.
Slaughter volumes were favorably impacted by the startup of operations of the Pontevedra, Venado
Tuerto and Berazategui plants, which were not operating in the 3Q06. Currently, the overall slaughter
capacity of JBS is 18.8 thousand head/day in Brazil and 6.0 thousand head/day in Argentina (excluding
the acquisition of meatpacker Col Car, which is still pending approval by Argentina's antitrust agency),
totaling 24.8 thousand head/day of slaughtering capacity in the Mercosul.

The graph below shows the Company's historical slaughter volume in each quarter for the past three
years (in thousands of head):

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Net Operating Revenue











Net sales increased by 6.5% to R$1,315.5 million in 3Q07, from R$1,234.6 million in the 3Q06, mainly
driven by a growth of 15.9% in sales volumes for the period. The presented volume growth was mainly
fueled by a 29.2% increase in domestic sales and by an increase of 8.6% in the average sales price for
the quarter in comparison to the same quarter of last year.
Compared to the 2Q07, net sales grew by 12.3%, while total sales volume increased by 1.4% and
average sales prices rose by 10.8%. In the 9M07, net sales increased by 16.9% versus the 9M06,
while volumes rose by 21.0%.
Cattle Slaughtered ­ `000 Heads of Cattle
Cattle Slaughtered ­ `000 Heads of Cattle
701
760
596
530
724
809
745
758
831
936
830
817
929
947
886
1Q
2Q
3Q
4Q
2004
2005
2006
2007
Cattle Slaughtered ­ `000 Heads of Cattle
Cattle Slaughtered ­ `000 Heads of Cattle
701
760
596
530
724
809
745
758
831
936
830
817
929
947
886
1Q
2Q
3Q
4Q
2004
2005
2006
2007
Net Revenues (R$ million)
Net Revenues (R$ million)
1.234,6
1.315,5
1.171,2
3.056,6
3.572,8
3Q06
3Q07
2Q07
9M06
9M07
16
,9%
6,5%
12,3%
Net Revenues (R$ million)
Net Revenues (R$ million)
1.234,6
1.315,5
1.171,2
3.056,6
3.572,8
3Q06
3Q07
2Q07
9M06
9M07
16
,9%
6,5%
12,3%
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Exports revenue as a percentage of the Company's total net revenue declined from 70% in the 3Q06
to 61% in the 3Q07, while the domestic market accounted for 39% of net revenue in the quarter, up
from 30% in the 3Q06, as shown in the graphs below. It is important to note that during the 3Q06,
JBS posted strong export sales, led by shipments to the European Union and, especially to Russia, with
exports to the latter country favorably impacted by the company's geographic diversification across
Brazil, with a greater number of plants certified for exports following the outbreaks of foot-and-mouth
disease that took place in late 2005 and early 2006. In addition, as it also occurred in the 2Q07, this
distribution of sales also reflects the Company's strategy to optimize its sales mix across markets,
selling its products in the markets that present the most attractive terms in each period.








Domestic Market

Domestic Market
3Q07
3Q06
Var.%
3Q07/3Q06
2Q07
Var.%
3Q07/2Q07
9M07
9M06
% Chg.
9M07/9M06
Net Sales Revenue
1
Fresh and Chilled Beef
362.8
235.4
54.1%
330.6
9.7%
1,005.8
743.4
35.3%
Processed Beef
65.7
47.9
37.2%
68.7
-4.4%
201.6
164.6
22.5%
Others
83.1
81.2
2.4%
88.6
-6.2%
252.3
209.8
20.3%
TOTAL
511.6
364.4
40.4%
487.9
4.8%
1,459.7 1,117.8
30.6%
Volume
2
Fresh and Chilled Beef
163.5
115.7
41.2%
157.7
3.6%
459.7
355.1
29.4%
Processed Beef
11.2
10.0
11.5%
11.2
-0.6%
35.0
28.6
22.6%
Others
40.9
41.1
-0.3%
41.0
-0.2%
120.1
112.9
6.3%
TOTAL
215.6
166.8
29.2%
210.0
2.7%
614.7
496.6
23.8%
Average Sales Price
3
Fresh and Chilled Beef
2.22
2.03
9.1%
2.10
5.9%
2.19
2.09
4.5%
Processed Beef
5.88
4.78
23.0%
6.12
-3.8%
5.76
5.76
-0.1%
Others
2.03
1.98
2.7%
2.16
-6.0%
2.10
1.86
13.1%
TOTAL
2.37
2.18
8.6%
2.32
2.3%
2.37
2.25
5.5%
1
In millions
2
In thousands of tons
3
In R$/Kg
Source: JBS
Net Revenue Distribution ­ Consolidated
Net Revenue Distribution ­ Consolidated
Domestic
Market
42%
Exports
58%
Domestic
Market
39%
Exports
61%
Domestic
Market
30%
Exports
70%
3Q06: R$1,234.6 million
3Q07: R$1,315.5 million
2Q07: R$1,171.2 million
Source: JBS
Net Revenue Distribution ­ Consolidated
Net Revenue Distribution ­ Consolidated
Domestic
Market
42%
Exports
58%
Domestic
Market
39%
Exports
61%
Domestic
Market
30%
Exports
70%
3Q06: R$1,234.6 million
3Q07: R$1,315.5 million
2Q07: R$1,171.2 million
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In the 3Q07, JBS' net sales from the domestic market totaled R$511.6 million, 40.4% higher than in
the 3Q06. This result was mainly due to the growth of 29.2% in sales volume to 215.6 thousand tons
in the quarter, up from 166.8 thousand tons in the 3Q06, as well as an increase in the average sales
price of 8.6% in relation to the 3Q06. Domestic sales rose by 4.8% in the quarter in comparison to the
2Q07 and by 30.6% in the 9M07 versus 9M06.








Domestic fresh beef volumes climbed 41.2% to 163.5 thousand tons in the 3Q07, from 115.5
thousand tons in the 3Q06. This growth was mainly driven by (i) higher beef consumption in Brazil
fueled by a good performance of the local economy; (ii) a greater allocation of volumes to this market,
which in some cuts was more attractive than the international markets; (iii) a strong performance of
higher value-added cuts, sold under JBS brands such as Matturata; and (iii) domestic sales growth in
Argentina, due to the startup of operations of the Venado Tuerto, Pontevedra and Berazategui plants
and to a higher consumption in that country.
The average sales price of fresh beef increased by 9.1% against the 3Q06, affected by higher raw
materials costs during the period, which directly impacted sales prices to the Company's clients.
Specifically in Brazil, average domestic sales prices of fresh beef rose by 18.1% during the quarter.
In comparison to the 2Q07, domestic fresh beef volumes grew by 3.6%, while average sales price rose
by 5.9%. In the 9M07, net sales grew by 30.6%, while volumes increased by 23.8%, with average
prices up 5.5% from the 9M06.

In the processed beef segment, the Company posted a volume growth of 11.5% in the quarter to 11.2
thousand tons, from 10.0 thousand tons in the 3Q06. This result was mainly driven by 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 volumes sold of Swift's new
product line, which was launched in late 2006. The average price of processed beef increased by 23%
in the quarter, mainly due to the product mix during the period, with increased sales of the higher
value-added products sold under the Swift and Anglo brands.
In comparison to the 2Q07, processed beef volumes remained unchanged between the two quarters,
while in the 9M07 these volumes increased by 22.6% and prices remained stable in relation to the
9M06.

Source: JBS
Net Revenue Distribution ­ Domestic Market
Net Revenue Distribution ­ Domestic Market
Others
22%
Fresh Beef
65%
Pro cessed Beef
13%
3Q06: R$364.4 million
Fresh Beef
71%
Po rcessed Beef
13%
Others
16%
3Q07: R$511.6 million
Outro s
18%
Carne In Natura
67%
P ro cessed Beef
14%
2Q07: R$487.9 million
Source: JBS
Net Revenue Distribution ­ Domestic Market
Net Revenue Distribution ­ Domestic Market
Others
22%
Fresh Beef
65%
Pro cessed Beef
13%
3Q06: R$364.4 million
Fresh Beef
71%
Po rcessed Beef
13%
Others
16%
3Q07: R$511.6 million
Outro s
18%
Carne In Natura
67%
P ro cessed Beef
14%
2Q07: R$487.9 million
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10

Export Market

Exports
3Q07
3Q06
Var.%
3Q07/3Q06
2Q07
Var.%
3Q07/2Q07
9M07
9M06
% Chg.
9M07/9M06
Net Sales Revenue
1
Fresh and Chilled Beef
592.0
657.6
-10.0%
486.1
21.8%
1514.3
1411.8
7.3%
Processed Beef
211.9
212.7
-0.3%
197.2
7.5%
598.8
527.0
13.6%
TOTAL
803.9
870.2
-7.6%
683.3
17.7%
2,113.2 1,938.8
9.0%
Volume
2
Fresh and Chilled Beef
71.6
81.3
-11.9%
75.8
-5.6%
220.4
196.5
12.2%
Processed Beef
39.4
33.6
17.2%
36.4
8.3%
106.4
85.2
24.9%
TOTAL
111.0
114.9
-3.4%
112.2
-1.0%
326.8
281.7
16.0%
Average Sales Price
3
Fresh and Chilled Beef
8.27
8.09
2.2%
6.41
28.9%
6.87
7.18
-4.4%
Processed Beef
5.38
6.32
-15.0%
5.42
-0.8%
5.63
6.19
-9.0%
TOTAL
7.24
7.57
-4.4%
6.09
18.9%
6.47
6.88
-6.0%
Average Sales Price
4
Fresh and Chilled Beef
4.31
3.73
15.7%
3.24
33.3%
3.43
3.29
4.4%
Processed Beef
2.80
2.91
-3.8%
2.73
2.5%
2.81
2.83
-0.7%
TOTAL
3.78
3.49
8.3%
3.07
23.0%
3.23
3.15
2.6%
1
In millions
2
In thousands of tons
3
In R$/Kg
4
In US$/Kg
Export net sales declined by 7.6% to R$803.9 million in the quarter, versus R$870.2 million in the
3Q06, mainly as a result of 3.4% decrease in export volumes and an 8.3% increase in the average
sales price in dollar terms (+15.7% for fresh beef and -3.8% for processed beef), which were offset by
an appreciation of the Brazilian real versus the U.S. dollar in the period of 11.7%. The lower volumes
were mainly a result of a greater allocation of certain cuts to the domestic market, which, during the
quarter, were more attractive than the international markets. Furthermore, as mentioned above, the
comparison base with the 3Q06 was adversely affected by that quarter's strong exports, especially to
the European Union and Russia.
On the other hand, in comparison to the 2Q07, export net sales increased by 17.7%, reflecting a slight
decline of 1.0% in volumes (-5.6% for fresh beef and +8.3% for processed beef) and a strong
increase in the average sales price in dollar terms of 23.0% (33.3% for fresh beef and 2.5% for
processed beef), which was slightly impacted by 3.2% appreciation of the Brazilian real against the
U.S. dollar during the period. The increase in the average sales price in dollar terms was mainly driven
by (i) a change in the product mix for the quarter, which favored sales of higher value-added cuts; (ii)
a higher cost of raw materials for the period; and (iii) the variance of the Brazilian Real against the U.S.
dollar.


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11

In the 9M07, export net sales grew by 9.0% compared to the 9M06, driven by a growth in volumes
shipped of 16.0%, and a 6.0% decrease in the average sales prices in Real terms, which was
negatively impacted by the appreciation of the Brazilian Real against the U.S. dollar of 8.4% between
the two periods.







With regards to the exported volumes, the following drivers can be highlighted:
Higher exports to the European Union, which has a product mix that favors more higher value-
added cuts;
Strong growth in exports to Hong Kong, which accounted for 6.8% of total export revenues in
dollars in the 3Q07, up from 3.4% in the 3Q06;
Higher export volumes to other Asian countries, such as Singapore and the Philippines;
Higher export volumes to Africa, especially Algeria, as was also the case in the 2Q07;
Growth in markets currently being developed by the Company, such as Venezuela and other
Latin American countries;
Growth in export volumes of processed beef, which increased by 17.2% compared to the 3Q06,
8.3% versus the 2Q07, and 24.9% on an year-to-date basis.
In the 3Q07, Europe remained as JBS' main export destination. During the same period, Russia
accounted for 14.4% of export revenues, down from 21.3% in the 3Q06. This figure clearly shows the
strong performance of Russian exports in the 3Q06 since the Company had a higher number of plants
certified to export to that country following the outbreaks of foot-and-mouth disease in late 2005 and
early 2006.

Compared to the 2Q07, export volumes to Russia increased by 37.7% in the quarter versus the 3Q06,
and by 28.3% in the 9M07 in comparison to the 9M06.

Source: JBS
Net Revenue Distribution ­ Exports
Net Revenue Distribution ­ Exports
Fresh Beef
76%
Processed Beef
24%
3Q06: R$870.2 million
Fresh Beef
74%
Pro cessed Beef
26%
3Q07: R$803.9 million
Fresh Beef
71%
Pro cessed Beef
29%
2Q07: R$683.3 million
Source: JBS
Net Revenue Distribution ­ Exports
Net Revenue Distribution ­ Exports
Fresh Beef
76%
Processed Beef
24%
3Q06: R$870.2 million
Fresh Beef
74%
Pro cessed Beef
26%
3Q07: R$803.9 million
Fresh Beef
71%
Pro cessed Beef
29%
2Q07: R$683.3 million
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12




























Source: JBS
Export Destinations ­ 3Q07
Export Destinations ­ 3Q07
Russia
14%
Holland
10%
USA
10%
Hong Kong
7%
Italy
6%
Spain
4%
Egypt
2%
Others
31%
Germany
6%
United
Kingdom
10%
Russia
21%
USA
9%
Holland
8%
Others
31%
Italy
7%
Bulgaria
2%
Germany
3%
Hong Kong
3%
Saudi
Arabia
3%
Egypt
4%
United
Kingdom
9%
Export Destinations ­ 3Q06
Export Destinations ­ 3Q06
Source: JBS
Source: JBS
Export Destinations ­ 3Q07
Export Destinations ­ 3Q07
Russia
14%
Holland
10%
USA
10%
Hong Kong
7%
Italy
6%
Spain
4%
Egypt
2%
Others
31%
Germany
6%
United
Kingdom
10%
Russia
21%
USA
9%
Holland
8%
Others
31%
Italy
7%
Bulgaria
2%
Germany
3%
Hong Kong
3%
Saudi
Arabia
3%
Egypt
4%
United
Kingdom
9%
Export Destinations ­ 3Q06
Export Destinations ­ 3Q06
Source: JBS
Source: JBS
Export Destinations ­ 9M07
Export Destinations ­ 9M07
Russia
13%
Holland
10%
USA
9%
Italy
7%
Others
31%
Egypt
4%
Spain
4%
Germany
5%
Hong Kong
7%
United
Kingdom
10%
Russia
14%
USA
10%
Holland
8%
Italy
7%
Others
33%
Bulgaria
2%
Hong Kong
4%
Saudi
Arabia
3%
Germany
4%
Egypt
5%
United
Kingdom
10%
Export Destinations ­ 9M06
Export Destinations ­ 9M06
Source: JBS
Source: JBS
Export Destinations ­ 9M07
Export Destinations ­ 9M07
Russia
13%
Holland
10%
USA
9%
Italy
7%
Others
31%
Egypt
4%
Spain
4%
Germany
5%
Hong Kong
7%
United
Kingdom
10%
Russia
14%
USA
10%
Holland
8%
Italy
7%
Others
33%
Bulgaria
2%
Hong Kong
4%
Saudi
Arabia
3%
Germany
4%
Egypt
5%
United
Kingdom
10%
Export Destinations ­ 9M06
Export Destinations ­ 9M06
Source: JBS
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13

Analysis of Operational Performance
R$ million
3Q07
%
3Q06
%
2Q07
%
9M07
9M06
Net Sales Revenue
1,315.5
100.0%
1,234.6
100.0%
1,171.2
100.0%
3,572.8
3,056.6
Cost of Goods Sold
-1,005.9
-76.5%
-953.5
-77.2%
-890.3
-76.0%
-2,724.8
-2,329.0
Gross Margin
309.6
23.5%
281.2
22.8%
280.9
24.0%
848.1
727.5
Selling Expenses
-115.7
-8.8%
-90.0
-7.3%
-106.6
-9.1%
-322.2
-272.5
General and Adm. Expenses
-41.1
-3.1%
-39.7
-3.2%
-27.9
-2.4%
-89.6
-76.0
Net Financial Income (Expenses)*
-171.8
-13.1%
-89.9
-7.3%
-72.7
-6.2%
-301.4
-203.5
Equity Accounting Income
-34.3
-2.6%
0.0
0.0%
0.0
0.0%
-34.3
0.0
Initial Public Offering Expenses
-1.7
-0.1%
0.0
0.0%
0.0
0.0%
-52.2
0.0
Amortization of Goodwill
-0.4
0.0%
0.0
0.0%
-0.9
-0.1%
-1.3
0.0
Operating Income
-55.4
-4.2%
61.6
5.0%
72.8
6.2%
47.0
175.5
Non-Operating Income
-0.9
-0.1%
0.2
0.0%
0.8
0.1%
-0.1
-5.5
Taxes and Social Contribution
-24.7
-1.9%
-21.8
-1.8%
-35.7
-3.0%
-80.0
-65.7
Minority Interest
2.7
0.2%
0.0
0.0%
0.9
0.1%
4.1
0.0
Net Income
-78.3
-6.0%
40.0
3.2%
38.7
3.3%
-28.9
104.4

(*) The net financial result and, consequently, the net income for the 3Q07, were affected by exchange rate variances from investments made in
foreign currencies in the amount of R$67.0 million for the 3Q07 and R$116.0 million for the 9M07. Currency variances do not have a cash effect on
the Company, and as such, did not impact EBITDA for the period. Excluding this effect, the Company would have registered a net loss of R$11.3
million for the 3Q07 and a net income of R$87.1 million for the 9M07.

Net operating revenue from sales in the quarter rose 6.5% to R$1,315.5 million, from R$1,234.6
million in the 3Q06, mainly driven by a volume growth of 15.9% for the period and a 8.1% decline in
the average sales price in Brazilian real terms, which was negatively impacted by the 11.7%
appreciation of the Brazilian Real against the U.S. dollar during the period. This result was mainly
driven by the strong domestic sales performance, which generated revenues for the quarter 40.4%
higher than in the same period of last year. Net operating revenue rose by 12.3% in comparison to the
2Q07 and by 16.9% in the 9M07 versus the 9M06.
Cost of goods sold increased by 5.5%, from R$953.5 million in the 3Q06 to R$1,005.9 million in the
3Q07. As a percentage of net sales, cost of goods sold declined from 77.2% in the 3Q06 to 76.5% in
the 3Q07, mainly due to the strategy employed by the Company in the purchasing of raw materials
during the quarter. In view of the increase in cattle acquisition costs, the Company, taking advantage
of the geographic distribution of its plants and of the market scenario, increased the purchasing of raw
materials from third parties for deboning and processing, given the variances between cattle prices
and prices of boned meat from third parties that occurred during the quarter.

As a result of the net sales growth posted for the quarter, gross profit increased by 10.1%, from
R$281.2 million in the 3Q06 to R$309.6 million in the 3Q07. Gross margin grew by 0.7 p.p., from
22.8% in the 3Q06 to 23.5% in the 3Q07, driven by the factors described above. Compared to the
2Q07, gross margin declined by 0.5 p.p., representing 24.0% over net sales.

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14

Selling expenses rose from R$90.0 million in the 3Q06 to R$115.7 million in the quarter, mainly as a
result of (i) the higher sales volumes posted for the period, and (ii) marketing investments, which are
being made by the company to promote and consolidate the Swift brand, especially its new product
line, which in the 3Q06 had not yet been launched. As a percentage of net sales, selling expenses for
the quarter rose by 1.5 p.p. to 8.8%, from 7.3% in the 3Q06. Administrative expenses remained
within the same level as in the 3Q06, representing to 3.1% in the 3Q07, compared to 3.2% in the
same period of last year.
For the quarter, the Company posted a net financial expense of R$171.8 million, compared to R$89.9
million for the 3Q06, which was negatively impacted by the exchange rate variances from investments
made in foreign currency, mainly driven by the strong devaluation of the U.S. dollar and the Argentine
peso against the Brazilian Real. The impact from these exchange rate fluctuations on the consolidated
financial result is R$67.0 million for the 3-month period and R$116.0 million for the 9-month period
ended on September 30, 2007. It is important to highlight that these impacts do not have a cash
effect on the Company, and as such, did not impact EBITDA for the period.

The equity income result reflects the loss posted by JBS USA during the period.

As a result of the above factors, the Company posted a net loss of R$78.3 million for the 3Q07,
compared to a net income of R$40.0 million for the same quarter of last year. Eliminating the effect
from exchange rate variances on investments in foreign currency of R$67.0 million, net income for the
3Q07 would total R$11.3 million.
As previously mentioned the Company's Board of Directors met on 11/01/2007 and resolved that
exchange rate variances from investments made in foreign currency and the future amortization of
goodwill from acquisition of JBS USA will be permanently excluded for dividend calculation purposes.
This decision will be deliberated and voted at a future General Shareholders Meeting.
For the 3Q07, EBITDA (earnings before interest, tax, depreciation and amortization) increased by
0.9%, from R$170.3 million in the 3Q06 to R$171.9 million in the 3Q07. EBITDA margin declined by
0.7 p.p., from 13.8% in the 3Q06 to 13.1% in the 3Q07, impacted by the factors described above. It is
important to highlight that due to the impacts from the off-season period on the cost of raw materials,
which were significant during the 3Q07, the Company focused its management on maintaining
profitability levels rather than on expanding sales volumes.










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15




















CAPITAL EXPENDITURES
For the 3Q07, the Company's aggregate capital expenditure in property, plant and equipment,
including acquisitions (excluding Swift), totaled R$109.3 million. In the 9M07, these expenditures
amounted to R$435.3 million.

During the quarter, JBS invested primarily in the projects launched in 2006 and continued into the first
nine months of 2007, which include:
Increase of 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 and is already in the pre-operational phase;
Increase of the production capacity of its unit located in Barra do Garça, Mato Grosso, from
1,300 head of cattle slaughtered and deboned per day to 2,500 head of cattle slaughtered and
deboned per day. This unit's expansion has been partially concluded, with capacity currently at
2,000 head per day;
Increase in the production capacity of its plant located in Campo Grande, Mato Grosso do Sul
from 1,300 head of cattle slaughtered and deboned per day to 3,000 head per day;

EBITDA and EBITDA margin
EBITDA and EBITDA margin
170,3
171,9
165,2
430,5
493,3
13,8%
13,1%
14,1%
14,1%
13,8%
3Q06
3Q07
2Q07
9M06
9M07
EBITDA Margin (%)
14
,6%
0,9%
4,1%
EBITDA and EBITDA margin
EBITDA and EBITDA margin
170,3
171,9
165,2
430,5
493,3
13,8%
13,1%
14,1%
14,1%
13,8%
3Q06
3Q07
2Q07
9M06
9M07
EBITDA Margin (%)
14
,6%
0,9%
4,1%
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16
Increase in the production capacity of its plant located in Vilhena, Rondônia, from 900 head of
cattle slaughtered and deboned per day to 2,200 head per day;
Increase in the production capacity of its plant located in Barretos, São Paulo, from 1,600 head
of cattle slaughtered and deboned per day to 2,500 head per day;
Construction of a new container terminal for exports in Cubatão, São Paulo, with a capacity to
receive and store 240 containers. The terminal began operations in October 2007;
Other investments, such as acquisition of new equipment and maintenance of production
facilities.
RECENT EVENTS
In line with its expansion strategy and taking advantage of opportunities to consolidate the industry,
on October 3, 2007, through its subsidiary Swift-Armour S.A. Argentina, JBS S.A. acquired meatpacker
Col Car S.A., located in Colonia Caroya, in the province of Córdoba, Argentina. The Colonia Caroya unit
features modern facilities and equipment and has a slaughtering and deboning capacity of 700 head
per day, with production allocated to both the domestic and export markets.
For the Argentine market, the unit produces fresh, chilled and frozen beef, sold under its Col Car brand
and distributed across the country through its own fleet. In 2006, sales to the domestic market totaled
81.4 million pesos. For the same period, exports amounted to approximately US$11.4 million, sold
mainly to Germany, England, Italy and Holland. The unit is certified to export to the main markets in
the Atlantic block, such as the European Union, Russia, Chile, Algeria and Egypt, among others, and
holds a 325-ton share of the annual Hilton quota. Exports include fresh, chilled and frozen beef, as well
as frozen offal.

The acquisition value is US$20,250,000 and the conclusion of the transaction is subject to approval by
the Argentine government authorities.
The acquisition of the Colonia Caroya plant is part of JBS' strategy of internationalization and
consolidation of the global beef industry and represents a continuation of its expansion process in the
Mercosur. With this acquisition, the company will operate a total of six units in Argentina, with a total
slaughtering capacity of 6.7 thousand head of cattle per day in that country, bringing its total
slaughtering capacity in the Mercosur region to 25.5 thousand head per day.

Additionally, in October/07, the Company began operations of a new container terminal located in the
city of Cubatão, state of São Paulo, Brazil, whose main objective is to contribute into further
accelerating the export sales process and, consequently, ensuring the quality of the products sold by
the company in international markets.

With a total area of approximately 30,000 m
2
, consisting of an office building, container areas and
facilities used for the maintenance of JBS' truck fleet, the new terminal substitutes the one previously
leased by the company and can receive and store up to 240 containers, or the equivalent of up to 6
thousand tons of beef. Furthermore, there is space to accommodate up to 600 empty containers and
parking for 80 trucks. In addition to increasing storage area by approximately 20,000 m
2
or 192
additional containers, this infrastructure will allow JBS to further centralize its export logistics
background image
17
operations and obtain a higher level of control within the export supply chain, including adequate
product refrigeration. This differential brings competitive advantages to JBS' customers as it ensures
excellence in product quality and a better service level. The investment in the new terminal in Cubatão
totaled approximately R$11 million.

CAPITAL INCREASE
At an Extraordinary Shareholders Meeting held on September 28, 2007, the Company verified the total
subscription of its 227,400,000 new common shares, whose issuance was approved at the Board of
Directors meeting held on 06/08/2007 and at the Extraordinary Shareholders Meeting held on
06/29/2007, and also ratified its capital increase. As a result, the value of JBS' capital stock increased
from R$91,747,942.12 to R$1,945,580,962.12, comprising of 1,077,400,000 book-entry registered
common shares with no par value.
The table below shows the new shareholders structure of JBS:
Shareholders
Amount of Shares
% of Capital
Stock
J&F Participações S.A.
597,195,003
55.43%
ZMF Fundo de Investimento em Part.
87,903,348
8.16%
BNDES Participações S.A. - BNDESPAR
139,470,610
12.95%
Administrators
16
0.00%
Market
252,831,023
23.47%
Total 1,077,400,000
100.00%

The graph below shows the new corporate structure of JBS:







J&F Part. S.A. &
ZMF Fundo (Family
Holdings)
JBS Holding
International S.A.
Swift-Armour S.A.
Argentina
63,6%
100,0%
100,0%
Mouran Alimentos
Ltda.
SB Holding, Inc
USA
70,0%
100,0%
Market
23,5%
Beef Snacks
International
Beef Snacks Ind. e
Com. de Alimentos
Ltda.
62,5%
99,9%
BNDESPar
JBS USA, Inc.
Swift Foods
Company
12,9%
100,0%
100,0%
J&F Part. S.A. &
ZMF Fundo (Family
Holdings)
JBS Holding
International S.A.
Swift-Armour S.A.
Argentina
63,6%
100,0%
100,0%
Mouran Alimentos
Ltda.
SB Holding, Inc
USA
70,0%
100,0%
Market
23,5%
Beef Snacks
International
Beef Snacks Ind. e
Com. de Alimentos
Ltda.
62,5%
99,9%
BNDESPar
JBS USA, Inc.
Swift Foods
Company
12,9%
100,0%
100,0%
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18

ANALYSIS OF RESULTS - JBS USA, INC.

Introduction

JBS USA, Inc. ("JBS USA"), formerly "Swift Foods Company", was acquired by JBS on July 11, 2007,
and operates in the processing, preparation and distribution of beef and pork for sale in the United
States and in international markets, with production plants located in the United States and Australia.
Founded more than
150 years ago, the Company is the third-largest producer of beef and pork in the
United States in terms of slaughter capacity (26,300 cattle head/day and 47,900 head/day in swine).
JBS USA produces fresh meat, with its main products consisting of chilled beef and pork in cuts and
ground, which are sold in boxes customized to local-market industry standards. In addition, the
Company also operates a case-ready plant, producing seasoned beef and pork packaged in individual
servings for immediate consumption.
JBS USA operates through 3 divisions: Beef in the United States, responsible for the Company's beef
operations in the United States; Pork in the United States, responsible for the pork operations in the
United States; and Australia, responsible for the Australian beef operations. In the fiscal year ended
May 27, 2007, these divisions accounted for approximately 57%, 23% and 20% of the total net
revenue of JBS USA, respectively, which amounted to US$9.5 billion. The Company also operates a
sheep plant, which accounted for less than 1% of total net revenue in fiscal year 2007. The slaughter
capacity of JBS USA by product and region is 20,500 cattle head/day and 47,900 swine head/day in
the United States, and 5,800 cattle head/day in Australia.
A significant part of the revenue from the pork division in the United States originates from the sale of
fresh pork, however, the division also makes other pork products, such as hams and other cuts, which
are sold mainly to processing companies to make bacon, hot dogs and other ready-to-eat products.
The revenue from the Australia division is primarily generated from the sale of fresh beef, which comes
from grass-fed cattle, and confined cattle that is primarily grain fed, of higher value-added, and mainly
exported to Japan. Approximately 85% of sales from the Australia division are exported to more than
30 countries, with a significant share going to the Pacific coast. The division also operates 4
confinement units, which supply cattle to its own operations and also to other producers, depending on
market conditions.
The operating units of JBS USA are located as follows:
In the United States:
4 cattle slaughtering plants located in the states of Colorado, Utah, Nebraska and Texas;
1 case-ready plant (beef and pork) located in the state of California;
3 hog slaughtering plants located in the states of Minnesota, Iowa and Kentucky; and
1 lamb slaughtering plant located in the state of Colorado.

In Australia:
4 cattle slaughter plants located in Beef City, Dinmore, Townsville and Rockhampton;
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19
4 cattle confinement units located in Beef City, Caroona, Prime City and Mungindi.
The maps below show the locations of the group's units in the United States and Australia and their
respective slaughter capacity:











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 a 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-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 conclusion of the Swift acquisition 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 its ends
in the month of December, aligning it to the fiscal year of JBS, (iii) maintain the presentation of results
on a weekly basis, as described above, and (iv) change the external auditing of the company to Grant
Thornton as of 7/11/2007, as to maintain a single external auditing company for the entire group.
Santa Fe Springs, CA
Hyrum, UT
Cactus, TX
2,500 capacity/day
4,000 capacity/day
6,000 capacity/day
6,000 capacity/day
18,700 capacity/day
Worthington,
MN
Grand Island,
NE
6,000 capacity/day
18,700 capacity/day
Marshalltown, IA
Louisville, KY
10,500 capacity/day
Townsville
Rockhampton
Dinmore
Caroona
Prime City
Mungindi
900 capacity/day
650 capacity/day
3,350 capacity/day
865 capacity/day
Beef City
Greeley, CO
U.S. beef processing plant
Value-added processing and packaging facility (beef and pork case-ready)
Pork processing plant
Lamb processing plant
Headquarters (including new R&D Center)
Australian beef processing plant
Australian cattle feedlot
Santa Fe Springs, CA
Hyrum, UT
Cactus, TX
2,500 capacity/day
4,000 capacity/day
6,000 capacity/day
6,000 capacity/day
18,700 capacity/day
Worthington,
MN
Grand Island,
NE
6,000 capacity/day
18,700 capacity/day
Marshalltown, IA
Louisville, KY
10,500 capacity/day
Townsville
Rockhampton
Dinmore
Caroona
Prime City
Mungindi
900 capacity/day
650 capacity/day
3,350 capacity/day
865 capacity/day
Beef City
Greeley, CO
U.S. beef processing plant
Value-added processing and packaging facility (beef and pork case-ready)
Pork processing plant
Lamb processing plant
Headquarters (including new R&D Center)
Australian beef processing plant
Australian cattle feedlot
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20
Therefore, the results now consolidated at JBS considers the 75-day period beginning July 11, 2007
and ended September 23, 2007.
Considering that all alterations described above result in an absence of comparability for the period
consolidated at JBS, the following is being included below (i) revised results of JBS USA in Brazilian
Real and in BR GAAP for the 75 days between 07/11/07 and 09/23/07 and (ii) an enclosure
("Enclosure I") containing a comparison between non-consecutive 90-day periods ended on 05/27/07
and 09/23/07, respectively, both in US GAAP and in US$.

With regards to item (ii) above, although the figures are in US GAAP and in US$, not fully reflecting
the period for which results were consolidated at JBS, the qualifications and comments are valid and
adequately reflect the variables that influenced the company's performance since the day of its
acquisition by JBS.
Income Statement ­ JBS USA, Inc.
The table below shows the operating results of JBS USA, Inc., formerly Swift Foods Company ("Swift"),
including its operations in the United States and Australia, in BR GAAP and in Brazilian Real (R$) for
the period between 07/11/2007 and 09/23/2007.
R$ million
3Q07
%
Net Sales Revenue
3,918.1
100.0%
Cost of Goods Sold
3,738.6
95.4%
Gross Margin
179.5
4.6%
Selling Expenses
-141.8
-3.6%
General and Adm. Expenses
-59.8
-1.5%
Net Financial Income (Expenses)
-17.3
-0.4%
Equity Accounting Income
0.0
0.0%
Other Operational Expenses
0.0
0.0%
Non-operational Result
5.9
0.2%
Taxes and Social Contribution
-0.8
0.0%
Minority Interest
0.0
0.0%
Net Income
-34.3
-0.9%
EBITDA
3.0
0.1%

Net sales at JBS USA for the 75-day period between July 11, 2007 and September 23, 2007 totaled
R$3.918,1 million. Gross margin for the period was 4.6% and net margin was a negative 1.5%.
EBITDA totaled R$3.0 million with an EBITDA margin of 0.1%.

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, as well as by division can be found
below on Enclosure I.
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21
ENCLOSURE I ­ COMMENTS ON OPERATIONAL PERFORMANCE ­ JBS USA, INC.

The table below shows the operational results of JBS USA, Inc., formerly Swift Foods Company
("Swift"), including its operations in the United States and Australia, unaudited, in US GAAP and in U.S.
dollars (US$), during the last 13 weeks that ended on 05/27/07 and 09/23/07, respectively. Results
for the last 13 weeks that ended on 09/23/07 are pro-forma as they combine two distinct and non-
consecutive periods.
US$ million
23/set
%
27/mai
%
Var. US$
Var. %
Net Sales Revenue
2,588.2
100.0%
2,357.0
100.0%
231.2
9.8%
Cost of Goods Sold
-2,571.7
-99.4%
-2,321.5
-98.5%
-250.2
10.8%
Gross Margin
16.6
0.6%
30.3
1.3%
-13.8
-45.4%
Selling, General and Adm. Expenses
-35.3
-1.4%
-37.4
-1.6%
2.2
-5.8%
Net Financial Income (Expenses)
-27.7
-1.1%
-30.8
-1.3%
3.2
-10.2%
EBITDA
3.9
0.2%
19.3
0.8%
-15.4
-79.8%

Net Revenue
Net revenue for the 13-week period ended on 9/23/2007 grew by US$231.2 million, or 9.8%, in
relation to the 13 weeks ended on 5/27/2007, mainly driven by the growth of 19.8% in beef volumes
produced in the United States, and the increase in the average selling price in the Australian division to
offset the appreciation of the Australian dollar of 4.0% in relation to the U.S. dollar in the period.
Cost of Goods Sold
The cost of goods sold in the thirteen weeks ended on 9/23/2007 increased by US$250.2 million, or
10.8%, against the thirteen weeks ended on 5/27/2007, mainly driven by the appreciation of the
Australian dollar against the U.S. dollar of 4.0%, as well as the costs associated with the higher
volumes and the startup of a second shift at the Greeley plant.
Gross Margin
JBS USA gross margin was 0.6% in the thirteen weeks ended on 9/23/2007, compared to 1.3% in the
thirteen weeks ended on 5/27/2007. Gross margin declined across all segments, due to different
factors: (i) at the U.S. beef division, due to the costs associated with higher volumes and the startup
of the second shift at the Greeley plant, including payroll and overtime; (ii) at the U.S. pork division,
due to the higher raw material costs, which were not fully passed through to final clients; and (iii) at
the Australian division, mainly due to the appreciation in the Australian dollar against the U.S. dollar of
4.0% in the period, which was not fully offset by the increase in the average selling price.

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22

Selling, General and Administrative Expenses
Selling, general and administrative expenses totaled US$35.3 million in the 13 weeks ended
9/23/2007, compared to US$37.4 million in the 13 weeks ended 5/27/2007. These expenses declined
by US$ 2.1 million, or 5.6%, mainly due to the elimination of overlapping management positions and
the reduction in management levels, as well as the elimination and/or reduction in expenses with the
outsourcing of professional and consulting services. Selling, general and administrative expenses
include approximately US$2.4 million in non-recurring expenses associated with a retention agreement
to ensure the continuity of certain management positions for a period of 6 months following the
conclusion of the acquisition of Swift. The result in the quarter was also impacted by a non-recurring
expense of US$1.1 million associated with the stock option plan of the previous controller. These non-
recurrent expenses relate to the 15-day period prior to the acquisition, which is part of the 13 weeks
that ended on 09/23/07.
Net Financial Result
The net financial result for the 13 weeks ended 9/23/2007 was US$27.7 million, compared to US$30.8
million in the 13 weeks ended on 5/27/2007. The decline in the period of US$3.1 million, or 10.1%,
was mainly driven by the Company's lower debt levels and its new capital structure following the
conclusion of the acquisition by JBS on July 11, 2007. The result would have been even lower were it
not for the accounting of the payment 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 13 weeks ended 09/23/07
totaled US$3.9 million compared to US$19.3 million for the 13 weeks ended on 05/29/07. EBITDA
margin was 0.15% and 0.82%, respectively.










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23

ANALYSIS OF RESULTS BY DIVISION
Main Operational Indicators

Operating Results
1
23/sept
27/may
Variance US$
Variance in
Revenue
Variance in
Head Kill
Variance in
Average Price
Net Revenue
2
Swift - Beef
1,576.8
1,351.6
225.2
16.7%
19.8%
-2.7%
Swift - Pork
570.5
587.9
-17.4
-3.0%
-5.5%
2.7%
Swift - Australia
515.6
503.5
12.1
2.4%
0.3%
2.1%
Corporate and Others
-74.1
-86.1
12.0
-13.9%
-
-
TOTAL
2,588.8
2,357.0
231.8
9.8%
0.2%
9.6%
EBITDA
2
Swift - Beef
-10.34
-8.97
-1.4
15.2%
-
-
Swift - Pork
15.45
25.55
-10.1
-39.5%
-
-
Swift - Australia
-1.28
2.71
-4.0
-147.3%
-
-
Corporate and Others
-
-
-
-
-
-
TOTAL
3.82
19.29
-15.5
-80.2%
-
-
EBITDA Margin
Swift - Beef
-0.66%
-0.66%
-
-
-
-
Swift - Pork
2.71%
4.35%
-
-
-
-
Swift - Australia
-0.25%
0.54%
-
-
-
-
Corporate and Others
-
-
-
-
-
-
TOTAL
0.15%
0.82%
-
-
-
-
1
Last 13 weeks ended 05/27/07 and 09/23/07, respectively, in US$ and US GAAP
2
In millions of US$
Beef ­ United States
Net Revenue

Net revenue in the U.S. beef division was US$1,576.8 million in the thirteen weeks ended 9/23/2007,
compared to US$1,351.6 million in the thirteen weeks ended on 5/27/2007. This increase of US$225.2
million, or 16.7%, was mainly fueled by the increase of 19.8% in volumes produced, which was
partially offset by the decline in the average price of 2.7%. The growth in volumes and production
reflects the Company's recovery following the problems last year caused by U.S. immigration
inspection, and the start of the second shift at the Greeley plant on September 1, 2007.
Gross Margin

Gross margin in the U.S. beef division was negative 0.2% for the thirteen weeks ended 9/23/2007,
compared to negative 0.5% for the thirteen weeks ended 5/27/2007. The continuation of negative
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24
margins at the division were mainly driven by the higher personnel costs described above, and
continued pressure on margins due to the higher cattle acquisition costs in the United States.

EBITDA

EBITDA in the U.S. beef division was a negative US$10.3 million for the thirteen weeks ended
9/23/2007, compared to a loss of US$9.0 million in the thirteen weeks ended on 5/27/2007, with both
figures representing the same EBITDA margin of negative 0.66%. The EBITDA registered by the
division, which reflects 16.7% higher sales and a 2.1% drop in cattle acquisition costs, was adversely
affected by costs associated with hiring personnel following the problems caused last year from the
U.S. immigration inspection (including payroll and overtime), as well as a decline in production until
staff could be adequately trained to previous productivity levels. Some expenses associated with
production declined between the two periods, including salaries, due to the reduction in headcount,
operating inputs, insurance, utilities and maintenance. Selling general and administrative expenses
declined by US$0.3 million (-2.0%) versus the prior period, even though the division incurred a non-
recurring expense of US$1.2 million associated with retaining staff following the conclusion of the
acquisition by JBS on July 11, 2007, and a non-recurring expense of US$0.6 million associated with
the stock option plan of the previous controller. These non-recurrent expenses relate to the 15-day
period prior to the acquisition.

Pork ­ United States
Net Revenue

Net revenue in the U.S. pork division was US$570.5 million for the thirteen weeks ended 9/23/2007,
compared to US$587.9 million for the thirteen weeks ended 5/27/2007. The decrease of US$17.4
million, or 3.0%, reflects the drop of 5.5% in volumes produced, which was partially offset by the
increase in the average selling price of 2.7%. Increases in selling prices were attributable to price
umbrella for pork products as a result of continued high beef prices, however lower volumes
attributable to higher hog prices which made it less economic to run in the current quarter.

Gross Margin
Gross margin for the U.S. pork division was 4.0% for the thirteen weeks ended 9/23/2007, compared
to 5.5% in the thirteen weeks ended 5/27/2007, driven by the increase of 4.4% in raw material costs,
which were partially mitigated by an increase of 2.7% in the average selling price.

EBITDA
EBITDA in the pork division was US$15.4 million for the thirteen weeks ended 9/23/2007, compared to
US$25.6 million for the thirteen weeks ended 5/27/2007. The drop of US$10.2 million in EBITDA was
mainly due to the increase of 4.4% in raw material acquisition costs, which were partially offset by an
increase of 2.7% in average price, as well as the reduction in selling, general and administrative
expenses in the quarter of US$0.5 million, or 4%. Selling general and administrative expenses would
have declined even further were it not for the non-recurring expense of US$1.2 million associated with
retaining staff following the conclusion of the acquisition of JBS on July 11, 2007, and a non-recurring
expense of US$0.5 million associated with the stock option plan of the previous controller. These non-
recurrent expenses relate to the 15-day period prior to the acquisition.
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25
Production costs remained unchanged between the two periods, with an increase in expenses with
salaries and utilities, which were offset by the lower packaging expenses and selling, general and
administrative expenses.
Beef ­ Australia
Net Revenue
Net revenue in the Australia division was US$515.6 million for the thirteen weeks ended 9/23/2007, up
from US$503.5 million for the thirteen weeks ended on 5/27/2007. The revenue growth of US$12.1
million, or 2.4%, was primarily fueled by an increase of 2.1% in the average selling price, given that
sales volume remained stable between the two quarters. Sales prices, 80% of which are denominated
in U.S. dollar, increased to offset the appreciation in the Australian dollar against the U.S. dollar of 4%
in the period.

The grass fed operation is an opportunistic operation ­ where profitability is driven largely by the
spread between livestock prices and selling prices, most prominent when cattle are plentiful. Australia
continues to suffer unusual rain patterns which continue to affect the grass fed division. The breeding
area for herds is generally an area north of the Tropic of Capricorn, and this area has received average
to above average rainfall which enables the livestock to remain on range feeding at relatively low cost.
The slaughter facilities and feeding ranges are generally in areas south of the Tropic of Capricorn which
has received below average rainfall leading to producers keeping the herd on pasture in the north and
not migrating the herd to the south as usually occurs seasonally for final range feeding prior to
slaughter. This event reduced supply and pressured cattle acquisition costs.
In addition on the grain fed side of the business, worldwide high corn prices coupled with the high
Australian dollar to US Dollar exchange rates has made international customers (who typically buy in
US Dollars) less inclined to pay higher beef prices. The Company has had some success in recent
weeks in explaining to customers the increased grain prices which have driven our breakeven price
higher on the grain fed division and there has been some willingness to accept higher prices, though
generally on lower volumes.
Gross Margin
Gross margin in the Australia division was negative 0.7% for the 13 weeks ended 9/23/2007,
compared to 1.0% for the 13 weeks ended 5/27/2007, mainly driven by the impact on margins
generated by the appreciation in the Australian dollar against the U.S. dollar, as well as the increase in
grain costs, which negatively impacted margin in the confined cattle operation.
EBITDA
EBITDA in the Australia division was loss of US$1.3 million in the thirteen weeks ended 9/23/2007,
down from a gain of US$2.7 million in the thirteen weeks ended on 5/27/2007. This US$4.0 million
reduction was chiefly due to (i) the appreciation in the Australian dollar against the U.S. dollar of 4.0%;
(ii) the higher cattle costs in the grass-fed operation; and (iii) the higher grain costs in the confined
cattle operation.


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26

NORMALIZATION OF EBITDA FOR THE PERIOD
As a result of the acquisition, we incurred certain one-time non-recurring costs which were recognized
in the income statement for the quarter ended September 23, 2007 including executive retention
expenses and predecessor stock option expenses, which, as previously mentioned were incurred in a
15-day period prior to the acquisition.
In addition, as a result of structural changes implemented by the new ownership, the Company has
reduced certain run rate expenses (SG&A, wastewater) and improved certain operational efficiency
items (beef yields, Australian sales model) in its first seventy-five days. As a large portion of these
initiatives were completed toward the end of the September, the "full quarter benefit" of such
initiatives will not be realized until future quarters.

Also, the announcement during the quarter that we would ramp Greeley beef plant back to a full
second shift of production meant that we incurred certain incremental hourly labor cost during the
period however since these new employees were not fully productive the cost was incurred prior to
receiving the increased production throughput benefit. We consider this incremental inefficient labor
cost a significant one time expenditure during the quarter ended September 23, 2007.


Adjusted EBITDA
1
Sept. 23
EBITDA
2
Swift - Beef
-10.34
Swift - Pork
15.45
Swift - Australia
-1.28
Corporative and Others
-
TOTAL
3.82
Adjustments:
Non-recurring Expenses ­ Retention Plan
3
2.43
Non-recurring Expenses ­ Option Plan
4
1.06
Expenses Reductions - JBS USA
5
3.98
Costs ­ Increase in Production
6
11.50
Non-recurring Expenses - Grand Island
7
1.00
Adjustment - Australia Earnings
8
11.68
Subtotal
31.65
Adjusted EBITDA
35.47



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27

(1)
Last 13 weeks ended 9/23/2007 in US GAAP and in US$;
(2)
In millions of US$;
(3)
Non-recurring expenses associated with the employee retention plan;
(4)
Non-recurring expenses associated with the stock option plan of the previous controller;
(5)
Permanent reductions in selling, general and administrative expenses obtained up to now by JBS USA;
(6)
Costs associated with the higher production, the benefits of which will only be captured in the coming quarters;
(7)
Non-recurring expenses related to water treatment at the Grand Island plant;
(8)
Improved profitability levels at the Australia division.


























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28
CONTACTS






Head Offices
Avenida Marginal Direita do Tietê, 500
Cep: 05111-100 São Paulo ­ SP
Brasil
Tel: (5511) 3144-4000
Fax: (5511) 3144-4279
www.jbs.com.br
José Paulo Macedo
Investor Relations Director
Tel: (5511)
3144-4224
Email: jpmacedo@jbs.com.br
André Gustavo Menezes
Investor Relations Manager
Tel: (5511)
3144-4055
Email: ir@jbs.com.br















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29

CONSOLIDATED FINANCIAL STATEMENTS ­ JBS S.A.
In thousands of Reais
09.30.07
06.30.07
09.30.07
06.30.07
CURRENT ASSETS
Cash and cash equivalents
61,007
60,732
235,954
97,351
Short-term investments (Note 5)
1,024,808
676,492
1,385,054
719,032
Trade accounts receivable, net (Note 6)
472,190
568,655
1,210,019
636,757
Inventories (Note 7)
510,637
576,338
1,560,825
750,077
Recoverable taxes (Note 8)
415,138
423,690
544,489
522,245
Prepaid expenses
5,525
2,575
55,012
6,549
Other current assets
90,912
64,881
168,438
102,525
TOTAL CURRENT ASSETS
2,580,217
2,373,363
5,159,791
2,834,536
NON-CURRENT ASSETS
Long-term assets
Credits with related parties (Note 9)
47,068
48,227
-
-
Judicial deposits and others
7,808
6,608
33,786
9,173
Deferred income taxes (Note 16)
15,257
16,722
22,416
23,933
Recoverable taxes (Note 8)
28,703
27,256
38,238
38,066
Total long-term assets
98,836
98,813
94,440
71,172
Permanent assets
Advances for investments in subsidiaries
(Note 9)
-
44,114
-
-
Investments in subsidiaries (Note 10)
2,279,987
490,931
882,745
20,050
Other investments
10
10
10
10
Property, plant and equipment, net (Note 11)
1,175,119
1,096,718
2,402,756
1,401,504
Intangible assets, net
9,615
9,615
178,074
22,870
Total Permanent assets
3,464,731
1,641,388
3,463,585
1,444,434
TOTAL NON-CURRENT ASSETS
3,563,567
1,740,201
3,558,025
1,515,606
TOTAL ASSETS
6,143,784
4,113,564
8,717,816
4,350,142
The accompanying notes are an integral part of the financial statements
Balance Sheet - Assets
JBS S.A. and its Subsidiaries
Consolidated
Company



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30
In thousands of Reais
09.30.07
06.30.07
09.30.07
06.30.07
CURRENT LIABILITIES
Trade accounts payable ( Note 12)
314,742
248,152
1,024,922
343,481
Loans and financings (Note 13)
805,562
449,175
2,416,704
543,970
Payroll and social charges (Note 14)
98,422
103,485
205,539
121,564
Other current liabilities
79,925
69,394
110,618
80,242
TOTAL CURRENT LIABILITIES
1,298,651
870,206
3,757,783
1,089,257
NON-CURRENT LIABILITIES
Loans and financings (Note 13)
1,510,571
1,676,778
1,562,247
1,685,013
Deferred income taxes (Note 16)
60,525
61,312
84,949
61,312
Provision for contingencies (Note 15)
44,258
49,182
53,395
55,194
Other non-current liabilities
21,627
23,670
45,086
29,069
TOTAL NON-CURRENT LIABILITIES
1,636,981
1,810,942
1,745,677
1,830,588
MINORITY INTEREST
-
-
6,204
(2,119)
SHAREHOLDERS' EQUITY (Note 17)
Capital stock
1,945,581
91,748
1,945,581
91,748
Capital reserve
1,160,983
1,160,776
1,160,983
1,160,776
Revaluation reserve
126,367
127,475
126,367
127,475
Retained earnings
(24,779)
52,417
(24,779)
52,417
TOTAL SHAREHOLDERS' EQUITY
3,208,152
1,432,416
3,208,152
1,432,416
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
6,143,784
4,113,564
8,717,816
4,350,142
The accompanying notes are an integral part of the financial statements
Balance Sheet - Liabilities and Shareholders' Equity
JBS S.A. e Empresas Controladas
Consolidated
Company









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31
In thousands of Reais
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
541.907
381.219
3.542.723
429.186
Foreign Sales
608.428
672.857
1.858.624
883.467
1.150.335
1.054.076
5.401.347
1.312.653
SALES DEDUCTIONS
Returns and discounts
(58.378)
(10.983)
(85.986)
(18.837)
Sales taxes
(64.220)
(37.463)
(81.796)
(59.182)
(122.598)
(48.446)
(167.782)
(78.019)
NET SALE REVENUE
1.027.737
1.005.630
5.233.565
1.234.634
Cost of goods sold
(747.514)
(760.705)
(4.744.477)
(953.468)
GROSS INCOME
280.223
244.925
489.088
281.166
OPERATING INCOME (EXPENSE)
General and administrative expenses
(19.337)
(24.413)
(100.972)
(39.680)
Selling expenses
(99.402)
(79.273)
(257.466)
(89.957)
Financial income (expense), net (Note 18)
(129.960)
(86.276)
(189.044)
(89.933)
Equity in subsidiaries
(83.615)
3.511
-
-
Initial Public Offering expenses
(1.653)
-
(1.653)
-
Goodwill amortization
(426)
-
(426)
-
(334.393)
(186.451)
(549.561)
(219.570)
OPERATING INCOME
(54.170)
58.474
(60.473)
61.596
NON-OPERATING INCOME (EXPENSE), NET
(50)
388
4.982
215
INCOME BEFORE TAXES
(54.220)
58.862 (55.491)
61.811
Current income taxes
(22.618)
(18.820)
(24.012)
(21.762)
Deferred income taxes
(1.466)
-
(1.513)
-
(24.084)
(18.820)
(25.525)
(21.762)
INCOME BEFORE MINORITY INTEREST
(78.304)
40.042
(81.016)
40.049
Minority interest (expense) income
-
-
2.712
(7)
NET INCOME
(78.304)
40.042
(78.304)
40.042
NET INCOME PER SHARE
(72,68)
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-operating
income (expense), net
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
Income before taxes
(54.220)
58.862
(55.491)
61.811
Financial income (expense), net (Note 18)
129.960
86.276
189.044
89.933
Depreciation and amortization
14.328
13.322
44.219
18.747
Non-operating income (expense), net
50
(388)
(4.982)
(215)
Equity in subsidiaries
83.615
(3.511)
-
-
Initial Public Offering expenses
1.653
-
1.653
-
Goodwill Amortization
426
-
426
-
AMOUNT OF EBITDA
175.812
154.561
174.869
170.276
The accompanying notes are an integral part of the financial statements
Company
JBS S.A. and its Subsidiaries
STATEMENTS OF INCOME FOR THE PERIOD OF THREE MONTHS ENDED
SEPTEMBER 30, 2007 AND 2006
Consolidated
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32
In thousands of Reais
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
1.553.250
1.163.019
4.670.123
1.306.688
Foreign Sales
1.692.089
1.651.813
3.226.423
1.971.168
3.245.339
2.814.832
7.896.546
3.277.856
SALES DEDUCTIONS
Returns and discounts
(130.530)
(45.463)
(173.558)
(76.346)
Sales taxes
(191.044)
(123.208)
(232.069)
(144.927)
(321.574)
(168.671)
(405.627)
(221.273)
NET SALE REVENUE
2.923.765
2.646.161
7.490.919
3.056.583
Cost of goods sold
(2.139.167)
(1.976.755)
(6.463.309)
(2.329.049)
GROSS INCOME
784.598
669.406
1.027.610
727.534
OPERATING INCOME (EXPENSE)
General and administrative expenses
(50.321)
(50.497)
(149.443)
(76.037)
Selling expenses
(283.051)
(247.474)
(463.990)
(272.470)
Financial income (expense), net (Note 18)
(223.437)
(175.349)
(318.684)
(203.482)
Equity in subsidiaries
(125.015)
(21.156)
-
-
Initial Public Offering expenses
(52.244)
-
(52.244)
-
Goodwill amortization
(1.293)
-
(1.293)
-
(735.361)
(494.476)
(985.654)
(551.989)
OPERATING INCOME
49.237
174.930
41.956
175.545
NON-OPERATING INCOME (EXPENSE), NET
(60)
(5.913)
5.814
(5.485)
INCOME BEFORE TAXES
49.177
169.017
47.770
170.060
Current income taxes
(77.316)
(64.659)
(80.586)
(65.669)
Deferred income taxes
(794)
-
(256)
-
(78.110)
(64.659)
(80.842)
(65.669)
INCOME BEFORE MINORITY INTEREST
(28.933)
104.358
(33.072)
104.391
Minority interest (expense) income
-
-
4.139
(33)
NET INCOME
(28.933)
104.358
(28.933)
104.358
NET INCOME PER SHARE
(26,85)
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-operating
income (expense), net
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
Income before taxes
49.177
169.017
47.770
170.060
Financial income (expense), net (Note 18)
223.437
175.349
318.684
203.482
Depreciation and amortization
42.147
33.516
82.118
51.441
Non-operating income (expense), net
60
5.913
(5.814)
5.485
Equity in subsidiaries
125.015
21.156
-
-
Initial Public Offering expenses
52.244
-
52.244
-
Goodwill Amortization
1.293
-
1.293
-
AMOUNT OF EBITDA
493.373
404.951
496.295
430.468
The accompanying notes are an integral part of the financial statements
Company
JBS S.A. and its Subsidiaries
STATEMENTS OF INCOME FOR THE PERIOD OF NINE MONTHS ENDED
SEPTEMBER 30, 2007 AND 2006
Consolidated
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33

FINANCIAL STATEMENTS ­ JBS S.A. (EXCLUDING SWIFT)
In thousands of Reais
09.30.07
06.30.07
09.30.07
06.30.07
CURRENT ASSETS
Cash and cash equivalents
61.007
60.732
93.776
97.351
Short-term investments (Note 5)
1.024.808
676.492
1.065.865
719.032
Trade accounts receivable, net (Note 6)
472.190
568.655
526.267
636.757
Inventories (Note 7)
510.637
576.338
681.088
750.077
Recoverable taxes (Note 8)
415.138
423.690
524.507
522.245
Prepaid expenses
5.525
2.575
7.024
6.549
Other current assets
90.912
64.881
125.912
102.525
TOTAL CURRENT ASSETS
2.580.217
2.373.363
3.024.439
2.834.536
NON-CURRENT ASSETS
Long-term assets
Credits with related parties (Note 9)
47.068
48.227
-
-
Judicial deposits and others
7.808
6.608
10.153
9.173
Deferred income taxes (Note 16)
15.257
16.722
22.417
23.933
Recoverable taxes (Note 8)
28.703
27.256
38.238
38.066
Total long-term assets
98.836
98.813
70.808
71.172
Permanent assets
Advances for investments in subsidiaries
(Note 9)
-
44.114
-
-
Investments in subsidiaries (Note 10)
2.279.987
490.931
1.768.102
20.050
Other investments
10
10
10
10
Property, plant and equipment, net (Note 11)
1.175.119
1.096.718
1.488.455
1.401.504
Intangible assets, net
9.615
9.615
25.918
22.870
Total Permanent assets
3.464.731
1.641.388
3.282.485
1.444.434
TOTAL NON-CURRENT ASSETS
3.563.567
1.740.201
3.353.293
1.515.606
TOTAL ASSETS
6.143.784
4.113.564
6.377.732
4.350.142
The accompanying notes are an integral part of the financial statements
Consolidated
Company
Balance Sheet - Assets
JBS S.A. and its Subsidiaries - Without Swift





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34
In thousands of Reais
09.30.07
06.30.07
09.30.07
06.30.07
CURRENT LIABILITIES
Trade accounts payable ( Note 12)
314.742
248.152
366.099
343.481
Loans and financings (Note 13)
805.562
449.175
934.172
543.970
Payroll and social charges (Note 14)
98.422
103.485
119.664
121.564
Other current liabilities
79.925
69.394
94.601
80.242
TOTAL CURRENT LIABILITIES
1.298.651
870.206
1.514.536
1.089.257
NON-CURRENT LIABILITIES
Loans and financings (Note 13)
1.510.571
1.676.778
1.516.091
1.685.013
Deferred income taxes (Note 16)
60.525
61.312
60.525
61.312
Provision for contingencies (Note 15)
44.258
49.182
48.890
55.194
Other non-current liabilities
21.627
23.670
23.334
29.069
TOTAL NON-CURRENT LIABILITIES
1.636.981
1.810.942
1.648.840
1.830.588
MINORITY INTEREST
-
-
6.204
(2.119)
SHAREHOLDERS' EQUITY (Note 17)
Capital stock
1.945.581
91.748
1.945.581
91.748
Capital reserve
1.160.983
1.160.776
1.160.983
1.160.776
Revaluation reserve
126.367
127.475
126.367
127.475
Retained earnings
(24.779)
52.417
(24.779)
52.417
TOTAL SHAREHOLDERS' EQUITY
3.208.152
1.432.416
3.208.152
1.432.416
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
6.143.784
4.113.564
6.377.732
4.350.142
The accompanying notes are an integral part of the financial statements
Consolidated
Company
Balance Sheet - Liabilities and Shareholders' Equity
JBS S.A. and its Subsidiaries - Without Swift











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35
In thousands of Reais
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
541.907
381.219
619.798
429.186
Foreign Sales
608.428
672.857
844.066
883.467
1.150.335
1.054.076
1.463.864
1.312.653
SALES DEDUCTIONS
Returns and discounts
(58.378)
(10.983)
(66.591)
(18.837)
Sales taxes
(64.220)
(37.463)
(81.796)
(59.182)
(122.598)
(48.446)
(148.387)
(78.019)
NET SALE REVENUE
1.027.737
1.005.630
1.315.477
1.234.634
Cost of goods sold
(747.514)
(760.705)
(1.005.920)
(953.468)
GROSS INCOME
280.223
244.925
309.557
281.166
OPERATING INCOME (EXPENSE)
General and administrative expenses
(19.337)
(24.413)
(41.145)
(39.680)
Selling expenses
(99.402)
(79.273)
(115.677)
(89.957)
Financial income (expense), net (Note 18)
(129.960)
(86.276)
(171.784)
(89.933)
Equity in subsidiaries
(83.615)
3.511
(34.270)
-
Initial Public Offering expenses
(1.653)
-
(1.653)
-
Goodwill amortization
(426)
-
(426)
-
(334.393)
(186.451)
(364.955)
(219.570)
OPERATING INCOME
(54.170)
58.474
(55.398)
61.596
NON-OPERATING INCOME (EXPENSE), NET
(50)
388
(924)
215
INCOME BEFORE TAXES
(54.220)
58.862 (56.322)
61.811
Current income taxes
(22.618)
(18.820)
(23.595)
(21.762)
Deferred income taxes
(1.466)
-
(1.099)
-
(24.084)
(18.820)
(24.694)
(21.762)
INCOME BEFORE MINORITY INTEREST
(78.304)
40.042
(81.016)
40.049
Minority interest (expense) income
-
-
2.712
(7)
NET INCOME
(78.304)
40.042
(78.304)
40.042
NET INCOME PER SHARE
(72,68)
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-operating
income (expense), net
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
Income before taxes
(54.220)
58.862
(56.322)
61.811
Financial income (expense), net (Note 18)
129.960
86.276
171.784
89.933
Depreciation and amortization
14.328
13.322
19.147
18.747
Non-operating income (expense), net
50
(388)
924
(215)
Equity in subsidiaries
83.615
(3.511)
34.270
-
Initial Public Offering expenses
1.653
-
1.653
-
Goodwill Amortization
426
-
426
-
AMOUNT OF EBITDA
175.812
154.561
171.882
170.276
The accompanying notes are an integral part of the financial statements
Company
JBS S.A. and its Subsidiaries - Without Swift
STATEMENTS OF INCOME FOR THE PERIOD Of THREE MONTHS ENDED
SEPTEMBER 30, 2007 AND 2006
Consolidated
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36
In thousands of Reais
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales
1.553.250
1.163.019
1.747.198
1.306.688
Foreign Sales
1.692.089
1.651.813
2.211.865
1.971.168
3.245.339
2.814.832
3.959.063
3.277.856
SALES DEDUCTIONS
Returns and discounts
(130.530)
(45.463)
(154.163)
(76.346)
Sales taxes
(191.044)
(123.208)
(232.069)
(144.927)
(321.574)
(168.671)
(386.232)
(221.273)
NET SALE REVENUE
2.923.765
2.646.161
3.572.831
3.056.583
Cost of goods sold
(2.139.167)
(1.976.755)
(2.724.752)
(2.329.049)
GROSS INCOME
784.598
669.406
848.079
727.534
OPERATING INCOME (EXPENSE)
General and administrative expenses
(50.321)
(50.497)
(89.616)
(76.037)
Selling expenses
(283.051)
(247.474)
(322.201)
(272.470)
Financial income (expense), net (Note 18)
(223.437)
(175.349)
(301.424)
(203.482)
Equity in subsidiaries
(125.015)
(21.156)
(34.270)
-
Initial Public Offering expenses
(52.244)
-
(52.244)
-
Goodwill amortization
(1.293)
-
(1.293)
-
(735.361)
(494.476)
(801.048)
(551.989)
OPERATING INCOME
49.237
174.930
47.031
175.545
NON-OPERATING INCOME (EXPENSE), NET
(60)
(5.913)
(92)
(5.485)
INCOME BEFORE TAXES
49.177
169.017
46.939
170.060
Current income taxes
(77.316)
(64.659)
(80.169)
(65.669)
Deferred income taxes
(794)
-
158
-
(78.110)
(64.659)
(80.011)
(65.669)
INCOME BEFORE MINORITY INTEREST
(28.933)
104.358
(33.072)
104.391
Minority interest (expense) income
-
-
4.139
(33)
NET INCOME
(28.933)
104.358
(28.933)
104.358
NET INCOME PER SHARE
(26,85)
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-operating
income (expense), net
2007
"Pro Forma"
2006
2007
"Pro Forma"
2006
Income before taxes
49.177
169.017
46.939
170.060
Financial income (expense), net (Note 18)
223.437
175.349
301.424
203.482
Depreciation and amortization
42.147
33.516
57.046
51.441
Non-operating income (expense), net
60
5.913
92
5.485
Equity in subsidiaries
125.015
21.156
34.270
-
Initial Public Offering expenses
52.244
-
52.244
-
Goodwill Amortization
1.293
-
1.293
-
AMOUNT OF EBITDA
493.373
404.951
493.308
430.468
The accompanying notes are an integral part of the financial statements
Company
JBS S.A. and its Subsidiaries - Without Swift
STATEMENTS OF INCOME FOR THE PERIOD OF NINE MONTHS ENDED
SEPTEMBER 30, 2007 AND 2006
Consolidated
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37

















































This release contains forward-looking statements subject to risks and uncertainties. Such forward-looking statements are based
on the management's beliefs and assumptions and information currently available to the Company. Forward-looking statements
include information on our intentions, beliefs or current expectations, as well as on those of the Company's Board of Directors
and Officers.

The reservations as to forward-looking statements and information also include information on possible or presumed operating
results, as well as any statements preceded, followed or including words such as "believes", "may", "will", "expects", "intends",
"plans", "estimates" or similar expressions.

Forward-looking statements are not performance guarantees; they involve risks, uncertainties and assumptions because they
refer to future events and, therefore, depend on circumstances which may or may not occur. Future results may differ
materially from those expressed or suggested by forward-looking statements. Many of the factors which will determine these
results and figures are beyond our control or prediction capacity.