Corporate Profile

JBS is the largest Brazilian multinational food company, dedicated to producing chilled and fresh beef, processed beef, and fresh and chilled pork, as well as beef and pork by-products.

In 2007, JBS consolidated itself as the largest beef-sector company in the world with the acquisition of Swift & Company in the U.S. and in Australia. The company also became the world leader in terms of slaughtering capacity – 51.4 thousand head/day – and maintained high operational standards of production, processing, and exports at its Brazilian and international plants.

With its latest acquisition, JBS also entered the pork market and was able to show impressive performance in this sector as well, closing the year as the third-largest producer and processor of this variety in the U.S. The acquisition increased JBS‘s portfolio by giving the Company the right to use the Swift brand worldwide.

JBS has a presence in 100% of the world’s consumer markets, thanks to its production structure, with plants in four of the main beef-producing countries – Brazil, Argentina, the United States and Australia – and to its leadership in exports, which reach 110 countries.

The Company’s success is sustained by its enterprising spirit and by the innovation demonstrated so clearly by its management:

• The Company was the first to consolidate the meat packing industry in Brazil;
• The strategic vision, with its focus on the expansion policy, began the Company’s internationalization in 2005 with the acquisition of Swift Argentina;
• By going public in 2007, JBS reinforced its reputation as a pioneering company, becoming the first company from the meat packing sector to publicly trade its shares on a stock market.

Other priorities of JBS’s management include modernization, the quality of raw materials and products, increasing and improving relationships with partners, clients, employees, and the community at large, as well as the satisfaction of its shareholders and a commitment to environmental issues.

Today, JBS has operations in the food and transportation segments, with a total of more than 40,000 employees that contribute to the Company’s success, considering all of the countries in which it is present. With the Company’s last three acquisitions – Smithfield Beef, National Beef and Tasman – the number of employees will surpass 60,000.

JBS’s operations are separated into 5 divisions: Divisão Alimentos Brasil (Brazil Food Division), Divisão Alimentos Argentina (Argentina Food Division), Divisão Alimentos EUA (U.S. Food Division), Divisão Alimentos Austrália (Australia Food Division), and Divisão Transporte (Transport Division).

Divisions

Brazil Food Division

This division produces a broad selection of processed beef products and noble cuts of fresh beef and enjoys deep penetration in the Brazilian and international markets. All of its production is carried out with attention to high quality control standards and meets international phytosanitary standards.

Meat handling is carried out in climate-controlled rooms, and the temperatures of our chilling and freezing chambers are controlled by completely computerized systems.

SSOP (Sanitation Standard Operating Procedures), GMP (Good Manufacturing Practice), HACCP (Hazard Analysis and Critical Control Point), as well as the Programa de Qualidade Total Friboi (TQF - Friboi Total Quality Program) are constantly observed to assure the quality of our products.

In addition, carcasses are inspected by veterinary doctors from the Serviço de Inspeção Federal do Ministério da Agricultura (SIF - Agriculture Ministry’s Federal Inspection Service), which authorizes production and processing. In addition to the monitoring of sanitary conditions and the tracking of raw materials, procedures are controlled at modern laboratories and by experienced technicians at JBS’s facilities.

In 2007, the Beef Snacks do Brasil plant was founded to produce the Beef Jerky snack, broadening the variety of the Divisão Alimentos Brasil’s products.

Argentina Food Division

Swift Armour S.A. was founded in 1907 and in 1996 participated in the National Food Processor Association’s NFPA-SAFE program, becoming the first meatpacker in Argentina to meet the regulations established by ISO 9001:2000 in its entire production process.

In 2005, it was acquired by JBS and is currently known as JBS Argentina, being comprised of six Industrial Plants: Rosario, Venado Tuerto, São José, Ponte Vedra, Berazategui and Col-Car, as well as a tin package plant located in Zárate.

JBS Argentina is the largest beef-based food producing company in Argentina, besides being the top company in terms of beef exports, always acknowledged for the high quality of its products for the domestic and international markets. JBS Argentina’s slaughtering capacity is 6,700 head/day, with annual beef production of 300,000 tonnes.

The production plants are strategically located in the regions having the highest concentrations of cattle in the provinces where they operate. They also are equipped with state-of-the-art technology for the processing of chilled and frozen meats and processed products.

JBS Argentina’s objective is to develop, produce and sell value-added, healthy, safe, and delicious beef-based foods directly to consumers as well as to large food vendors.

Seeking to innovate and to keep pace with the trends affecting large-scale food companies around the world, JBS Argentina adopts the most complete and rigorous sanitation and quality control systems, from animal tracking to product packaging, and throughout all phases of the production process.

U.S. Food Division

In July 2007, JBS S.A. acquired Swift Foods & Company, becoming the largest beef-based food company in the world and the absolute world leader in exports in the sector.

Swift & Company, now called JBS EUA, has been a recognized provider of beef and pork quality products for more than 150 years. It’s an industry pioneer in ideas, products, and technology. The focus of the division is to develop supply beef and pork foods that are practical and tasty.

In addition to supplying the world’s largest meat and ready-to-eat meals consumer market, as well as fresh beef consumer market, JBS USA represents diversification of the company’s operations with the opportunity to exploit the pork segment.

Australia Food Division

With 4 slaughtering plants and 4 cattle feed lots in Australia, JBS restates its successful acquisitions, adding to its consolidation of world leadership in the segment.

JBS Australia is the largest and broadest Australian meat processor and exporter, maintaining commercial relations with more than 30 countries, especially in the Pacific Coast and in North America. In addition, commitment to health and hygiene in its production plants and the acknowledgement of Australian cattle and beef quality enabled the quick expansion into new markets.

Transport Division

In order to support JBS’s operations in all its procedures, the Company developed its own efficient logistical structure, which optimizes everything from the selection of cattle at supplying units to the distribution of products throughout Brazil, as well as the transport of containers to ports for export.

The Division adopts methods aimed at guarantying the safety and preservation of cattle quality during transport and preserving the characteristics of end products at the moment of distribution, transporting each of the products of our mix in modern vehicles that provide adequate temperature conditions. The Transport Division also develops cost control and economy scale mechanisms to optimize the operation.

Product Line

JBS is a food company focused on the production of fresh and processed beef, handled within a rigorous hygiene standards, and sold in practical and hygienic packages and in appropriate consumption sizes.

Fresh beef

Chilled and frozen cuts, including rump cover, ribs, tenderloin, forequarter cuts, and offal, among others.

JBS fresh beef brands:

Maturatta: The market leader in special cuts for churrasco (barbecuing or grilling), due to the quality and taste of its products. The brand offers 9 options in chilled, cleaned, and boneless cuts: rump cover, rump brain, tenderloin, hump, sliced rump cover, brisket, thin skirt, rump tail, short ribs. The products are vacuum sealed and ready to be grilled.

Organic beef: With the slogan “Especial por Natureza” (Special by Nature), this brand follows the trend of ecologically correct products, offering 15 cut options in special fresh beef from organically raised cattle. These are available in vacuum sealed packages, besides a frozen option. The cattle used for these products are Certified organic by ASPRANOR (The Brazilian Association of Organic Animal Producers), having been fed on organic pastures and raised with special care, resulting in more tender cuts.

Friboi: A brand that is very well known in the market, distributed on a large scale, with more than 70 types of cuts of beef.

Cabaña Las Lilas: Internationally recognized as the best Argentine beef, the brand came into JBS’s portfolio with the acquisition of Swift Argentina, in 2005.

Swift Angus Select: Brand whose quality is Certified by the USDA and recognized for the nobility of thin, tender, and soft cuts.

Processed Beef

Products derived from beef, such as cooked, frozen, and canned beef, beef extracts, processed beef (hamburger, beef croquettes, sausages and cured sausages) and ready-to-eat meals. With facilities and processes aligned to the international market, JBS exports processed beef to all 5 continents and is the leading exporter of beef in Brazil.

JBS processed beef brands:

Swift: A traditional brand, having been the pioneer in Brazil and in Argentina in offering ready-to-eat meals. The product line includes feijoada, sausages, cold-cuts, luncheon meat, pâtés of various flavors in cans and in jars and hamburger.

Anglo: Viena sausages, feijoada, cold-cuts, canned beef, canned ham pâté, and meat balls with sauce.

Sola: On the market since 1949, it is a synonym of tradition and practicality, offering successful products such as: Carioca Viena Sausage, Fluminense Mortadella, Taya and Taya Nuevo canned meat, as well as Kikut cold-cuts, a consumer favorite and the icon of its class.

Exeter: A canned meat brand with a large share in the African market.

Operation Location and Areas

Currently, JBS is active on all 5 continents, through its industrial plants and distribution centers. The Company’s headquarters are located in the city of São Paulo (state of São Paulo), Brazil, and is focused on the area of corporate support.

Production

Focused on the growth and geographic expansion of its operations, JBS spreads is production operations over 23 plants located in 9 Brazilian states, 7 plants in 4 provinces of Argentina, 12 plants in the U.S., and 8 more in Australia. The acquisition of all of these plants was driven by the Company’s strategy to be in regions with the greatest concentrations of cattle in order to promote operational flexibility in production, reduction of cattle and finished product transportation costs, as well as the reduction of phytosanitary risks.

The strategic location of its plants is one of the factors that put JBS in an advantageous position in the market, presenting a production structure with lean costs and operational efficiency.

Excellence in Logistics

An important part of JBS’s structure is its own network of logistical support for the distribution of its products, which helps to control operating costs. The network is made up as follows: 4 distribution centers in Brazil, 3 of which are located in the state of São Paulo and another in the state of Minas Gerais; a container yard located adjacent to the port of Santos, to optimize export operations; a container yard in the city of Cubatão; 9 distribution centers in the U.S.; 6 distribution centers in Australia; and subsidiaries in Chile, Egypt, England, Japan, Hong Kong, South Korea, Taiwan, and China, which are responsible for distribution and sales in those countries.

Sales and the Market

Domestic Markets

JBS’s clients in Brazil are primarily large retailers, restaurants, and tanneries. The Company created the Programa Açougue Nota 10 (Grade A Butcher Shop program) which has as its purpose the building of solid relationships with its clients and consolidating the brand among its end consumers. The Company is also actively investing in the Swift and Maturatta brands, as well as in spreading the concept of organic beef within the industry and consumers.

JBS’s portfolio currently includes more than 6,000 domestic market companies.

In Argentina, JBS sells its own brands and those of third parties, among which Swift, Cabaña Las Lilas, Armour, Plate, Fray Bentos, Safra, Exeter and Corte Buona stand out. Thanks to these brands, the company is the absolute leader in the canned meat segment of the domestic market, having a share of 77% of all sales in 2007. During that year, the Swift brand increased its internal market sales for all of its product lines, especially hamburgers and sausages.

The Argentina client portfolio is comprised of 786 companies, including some of the largest superstore and supermarket chains in the country, as well as wholesalers and distributors throughout the entire Argentine territory.

JBS USA sells brands that are recognized worldwide for the high quality of their products, always focusing on innovation to add value to their clients’ sales by making practical and tasty products available to consumers. Its client portfolio comprises large wholesaler chains, some of which operate in multiple countries.

In Australia, the domestic market has strategic relevance and presents great growth potential. JBS brings strong brands and diversified products to this market, aimed at a demanding consumer public that is growing and has a high level of purchasing power.

Foreign Market

JBS is Brazil’s largest exporter of beef products, with revenues of US$ 1.1 billion in 2007, according to the SECEX (Brazilian Secretariat of Foreign Trade). It is also 22nd among the main Brazilian exporters from all sectors.

As is the case in domestic commerce, there is no concentration in JBS’s foreign market.

In Argentina, JBS is also first in beef exports, with a 2007 total of US$ 160 million, 22% higher than the export revenue for 2006. In the last year, JBS Argentina accounted for 87% of processed beef exports in Argentina, which were shipped, to the United States and Europe, which account for 190 clients.

In terms of the foreign market, JBS USA offers products with the same quality standard and brand recognition that characterize its domestic sales.

JBS’s leadership in beef products exports also extends to Australia, where products sold overseas brought in revenues of more than US$ 1.5 billion in 2007.

History

1953

• José Batista Sobrinho began operations at a small slaughtering plant, in the city of Anápolis (state of Goiás), with a 5 head/ day capacity.

1968

• Acquisition of the first slaughtering plant in Planaltina (Distrito Federal).

1970

• With the acquisition of the Luziânia (state of Goiás) plant, slaughtering capacity increased to 500 head of cattle per day.

1981 to 2002

• Significant expansion of operations in Brazil through acquisitions of slaughtering plants and fresh and processed beef production plants, as well as through investments in increasing production capacity.
  During this period, slaughtering capacity reached 5.8 thousand head/day.

2004

• Acquisition of 50% of BF Alimentos.

2005

• Restructuring of Grupo Friboi resulting in the creation of JBS S.A.
• Period in which the internationalization process began with the acquisition of Swift Armour S.A., Argentina’s largest beef producer and exporter.

2006

• Acquisition of two more plants in Argentina (Venado Tuerto and Pontevedra).
• Continued increases in slaughtering capacity, which grew to 22.6 thousand head/day at a total of 21 plants in Brazil and Argentina.

2007

• IPO in April.
• Acquisition of two plants in Argentina (Berazategui and Colonia Caroya).
• Acquisition of the SB Holdings distribution company.
• Acquisition of another plant in Brazil, in the city of Maringá (state of Paraná)
• Acquisition of Swift Foods Company, which was renamed JBS USA.
• Important domestic and international acquisitions of slaughtering plants and beef-based food and packaging industrial plants, for JBS products.
• Acquisition, in December, of 50% of Inalca, one of the largest beef-producing companies in Europe.

Subsequent Events

2008

• The purchase of the North American companies National Beef and Smithfield Beef, and the Australian company Tasman were announced, consolidating JBS’s world leadership in the beef sector. The acquisitions represent the completion of the investment plan aimed at creating a sustainable slaughtering, production, and sales platform in the United States and Australia, which began in July of 2007 with the acquisition of Swift & Company.

JBS Today

Currently, JBS is the world’s largest beef producer, having a slaughtering capacity of 51.4 thousand head/day (not including the recent acquisitions of National Beef, Smithfield Beef and the Tasman group). It is also the largest beef exporter in the world, having access to all the world’s consumer markets and production platforms in the four largest beef-producing countries (Brazil, Argentina, the United States, and Australia).

The company produces fresh beef, processed beef products, ready-to-eat meals, canned vegetables, beef and pork by-products, and fresh pork. It is the top seller of beef in the Brazilian, Argentine, and Australian markets, and is also the third-largest beef company in the U.S. market. With the capacity to slaughter 47.9 thousand pork/day, JBS became the third-largest pork producer in the U.S. as well.

The Company’s operations are carried out at several plants located in Brazil, Argentina, the U.S. and Australia, which gives it access to all of the world’s consumer markets, fl exible production operations, low costs for the transport of cattle to plants as well as for the transport of products to clients, and a lower risk of phytosanitary problems.

The Company offers low cost structure, efficient operation cycle, and high quality products.

At present, the Company’s plants are distributed as follows:

• 19 slaughtering plants located in the Brazilian states of Acre, Goiás, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Rondônia, São Paulo and Paraná, five of which also have processed beef production plants;
• 1 canned beef production plant located in the state of Rio de Janeiro, Brazil;
• 1 canned vegetable plant located in the state of Minas Gerais, Brazil;
• 1 cattle feed lot located in the state São Paulo, Brazil;
• 1 beef jerky plant located in São Paulo state, Brazil;
• 6 slaughtering plants located in four provinces of Argentina (Buenos Aires, Entre Rios, Santa Fé and Córdoba), 5 of which also have processed beef production plants;
• 1 metal package producing factory in the province of Buenos Aires, Argentina;
• 4 cattle slaughtering plants in the U.S. states of Colorado, Utah, Texas, and Nebraska;
• 3 pork slaughtering plants in the U.S. states of de Minnesota, Iowa, and Kentucky;
• 1 case-ready beef plant in the U.S. state of California;
• 1 lamb plant in the U.S. state of Colorado;
• 1 Wet Blue leather producing plant in the U.S. state of Texas;
• 2 beef jerky plants located in the U.S. states of Minnesota and Texas;
• 4 cattle slaughtering plants located in the Australian state of Queensland;
• 4 cattle feed lots located in the Australian states of Queensland and New South Wales;

Last Update: August 28, 2008