2007 Annual Report

2 JBS S.A.
Relatrio Anual 2007 Annual Report

3 JBS S.A. Relatrio Anual 2007 Annual Report
Sermos os melhores naquilo que nos propusermos
a fazer, com foco absoluto em nossas atividades,
garantindo os melhores produtos e servios aos
clientes, solidez aos fornecedores, rentabilidade
satisfatria aos acionistas e a certeza de um futuro
melhor a todos os colaboradores.
To be the best at what we set out to do, with
absolute focus on our activities, guaranteeing the
best products and services to our clients, stability
to our suppliers, satisfactory protability to our
shareholders, and a better future for all of our
employees.
Vc|eres
Values
Planejamento
Planning
Determinao
Determination
Disciplina
Discipline
Disponibilidade
Availability
Franqueza
Honesty
Simplicidade
Simplicity
Msse Mission
Por acreditarmos que um dos principais diferenciais
competitivos a qualidade das pessoas, por
acreditarmos que por mais simples que seja a
funo, pessoas preparadas e motivadas fazem a
diferena, atribumos ao Capital Humano o maior
patrimnio de nossa empresa. Principalmente
atravs das pessoas conseguimos inovar, criar,
melhorar e crescer. Este Capital bem direcionado
e apoiado nos permite alcanar os resultados
necessrios para perpetuar a empresa.
We believe that one of our strongest competitive
advantages is the quality of our people, and
that however as simple as a task may be, well-
trained and motivated people make a difference.
Because of that, we consider human capital to be
the Companys most important assets. It is mainly
through our people that we are able to innovate,
create, improve, and grow. Well-directed and
supported human capital allows us to achieve the
results necessary to sustain our Company.
Crenc Beliefs
Menscgem dc AdmnsIrce
Managements Message
dos mercados consumidores
100%
Lder mundial em
exportao de carne
bovina, com acesso a
|o |u|gos| |oo| oxpo||o| | ||o vo||u,
v|| uccoss |o 00 o| co|suuo| uu||o|s
Matriz em So Paulo
So Paulo Headquarter
O
ano de 2007 ca marcado na histria da JBS
como o ano da globalizao da Companhia. As
aquisies internacionais na Argentina, Estados
Unidos, Austrlia e Itlia reforam a estratgia da JBS em
diversicar geogracamente suas unidades de produo
e distribuio, rearmando a sua presena global nos
principais pases produtores de carne e com acesso a 100%
dos mercados consumidores. Essa plataforma de produo
distribuda resultou no surgimento da maior empresa de
carne bovina do mundo em capacidade de abate e maior
exportadora no segmento. Com isso, a Companhia protege-
se contra eventuais restries comerciais e sanitrias que
possam surgir ao redor do mundo. Estratgia provada
com sucesso mais uma vez frente s novas exigncias da
Unio Europia carne brasileira, pois a JBS direcionou
a demanda de seus clientes do mercado europeu para as
suas outras plataformas internacionais. Com a reduo do
comrcio de carne in natura com a Europa, ca aberta a
oportunidade de desenvolver um volume de vendas maior
de carnes industrializadas, que no sofreram restrio,
para aquele mercado. A JBS a maior produtora de carnes
industrializadas do mundo com fbricas state of the art.
A entrada da JBS com um novo player no mercado Norte
Americano causou margens negativas no setor de carne
bovina daquele pas, um perodo de acomodao movido
principalmente por uma expanso no abate da JBS USA, de
14.500 para 20.500 cabeas/dia, que causou forte presso
nos preos de compra do gado e preo de venda da carne.
A JBS fechou o ano de 2007 iniciando atividades na Europa
com a aquisio de 50% da Inalca, uma das maiores
produtoras de carne bovina do mercado europeu, com
plantas e centros de distribuio na Itlia, Rssia e frica.
The year 2007 will go down in JBS history as the year of the
Companys globalization. The acquisitions in Argentina, the
United States, Australia, and Italy reinforced JBSs strategy of
geographic diversication of its production and distribution
plants, strengthening its global presence in the most important
beef-producing countries and giving it access to 100% of
consumer markets. This distributed production platform resulted
in the emergence of the largest beef producer in the world
in terms of slaughtering capacity and the largest exporter
of the segment. In this way, the Company protects itself
against potential commercial and sanitary restrictions that
may be imposed around the globe. Its a strategy that has
been proved once again with success: in the face of new
demands from the European Union regarding Brazilian beef,
JBS was able to direct the demand of its European clients to
other international platforms. The reduction in the sale of fresh
beef in Europe opens the opportunity to develop larger sales
volume of processed beef, which is not subject to restriction,
in that market. With state-of-the-art plants, JBS is the largest
processed beef producer in the world.
The arrival of JBS as a new player in the North American
market caused negative margins in the beef sector in that
country, resulting in an accommodation period due mainly to
expansion of JBS USAs slaughtering capacity from 14,500 to
20,500 head/day, which put pressure on the cattle purchase
prices and beef sales price.
JBS closed 2007 starting its operations in Europe with
the acquisition of 50% of Inalca, one of the largest beef
producers in the European market, with plants and distribution
centers in Italy, Russia, and Africa.
As aquisies realizadas em
2007, somadas ao positivo
cenrio global de comrcio
de carne bovina, criam um
panorama para a JBS atingir
resultados positivos durante
o ano de 2008
The acquisitions made
in 2007, paired with
the positive global beef
sales scenario, created a
panorama favorable to JBSs
achieving positive results
during 2008
J no incio de 2008, a JBS anunciou a concluso da
negociao para a compra da National Beef Packing
Company, LLC, Smitheld Beef Group, Inc. e do Grupo
Tasman, sendo as duas primeiras empresas situadas nos
Estados Unidos e a terceira na Austrlia. O fechamento
dessas aquisies est sujeito ao cumprimento de condies
precedentes usuais em negcios dessa natureza, dentre as
quais a aprovao pelas autoridades governamentais.
Essas trs aquisies somam investimentos no valor de
US$ 1,68 bilho e sero suportadas em sua maioria por
uma subscrio privada de novas aes. Dessa maneira a
Companhia no alavancar sua estrutura de capital.
Essas aquisies representam a concluso do plano
de investimentos para a construo de uma sustentvel
plataforma de abate, produo e comercializao de carne
nos EUA e na Austrlia, que se iniciou em julho de 2007
atravs da aquisio da Swift & Company.
As aquisies relatadas, somadas ao positivo cenrio global
de comrcio de carne bovina e retomada nas margens j
notadas no setor nos EUA em 2008, criam um panorama para
a JBS atingir resultados positivos durante o ano de 2008.
A Companhia agradece o apoio e a dedicao de todos
os seus colaboradores, os quais so parte fundamental da
sua histria de expanso, atravs do seu comprometimento,
excelncia no desempenho de suas funes e esprito de
equipe. Adicionalmente, a JBS agradece aos acionistas,
clientes, fornecedores e comunidades do entorno por todo
apoio e credibilidade, reforando o compromisso de buscar
sempre atender s expectativas de todos os seus stakeholders.
Atenciosamente,
Joesley Mendona Batista
Presidente da JBS S.A.
In the beginning of 2008, JBS announced that it had
concluded negotiations for the purchase of National Beef
Packing Company, LLC, Smitheld Beef Group, Inc., and the
Tasman group, the rst two located in the U.S., the third in
Australia. The completion of these acquisitions is still subject to
the fulllment of precedent conditions which are customary in
transactions of this kind, including government approval.
These three acquisitions imply investments in the amount of
US$ 1.68 billion and will mostly be supported by a private
subscription of new shares. In this way, the Company will
not leverage its capital structure.
These acquisitions mark the conclusion of the investment
plan aimed at creating a sustainable beef slaughtering,
production, and sales platform in the United States and
in Australia, a plan which began in July 2007 with the
acquisition of Swift & Company.
These acquisitions, when combined with the positive
worldwide beef sales scenario and the recovery of margins
which have already been noticed in the U.S. in 2008 create
an atmosphere in which JBS is poised to achieve positive
results during 2008.
The Company would like to thank all of its employees for
their support and dedication, which are a fundamental part
of the history of its expansion, due to their commitment,
excellence in the performance of their jobs, and their team
spirit. JBS also thanks its shareholders, clients, suppliers,
and the surrounding communities for their support and
condence, and reinforces its commitment to always meet
the expectations of its stakeholders.
Sincerely,
Joesley Mendona Batista
CEO of JBS S.A.
11
A Companhia concluiu
em 2007 o plano de
investimentos para a
construo de uma sustentvel
plataforma de abate,
produo e comercializao
de carne bovina, o que
signica exibilidade
produtiva para atender os
clientes em momentos de
restries tossanitrias
In 2007 the Company
nished its investment
plan for the construction
of a sustainable beef
slaughtering, production,
and sales platform,
which will result in
production exibility in
serving our clients during
times of sanitary import
restrictions
JBS S.A. Relatrio Anual 2007 Annual Report
|ndce
Index
14
22
50
52
53
58
61
2
64
69
74
78
82
84
88
94
96
96
102
110
118
122
124
12
207
1. Histrico JBS
2. Perl Corporativo
3. Excelncia na Qualidade
Procedimentos Internos
Ferramentas de Gesto
Relacionamento com Fornecedores
Relacionamento com Clientes e Consumidores
4. Setor de Atuao
Cenrio Macroeconmico no Brasil, Argentina, EUA e Austrlia
A Indstria Mundial de Carne Bovina
A Indstria de Carne Bovina no Brasil, Argentina, EUA e Austrlia
Regulamentao do Setor
5. A JBS como Investimento
Estratgias e Vantagens Competitivas
Desempenho Operacional e Financeiro
Mercado de Capitais
Gesto de Riscos
Investimentos e Perspectivas
6. Governana Corporativa
7. Gesto de Pessoas
8. Responsabilidade Corporativa
9. Glossrio
10. Informaes Corporativas
11. Demonstraes Financeiras
12. Crditos
JBS History
Corporate Prole
Excellence in Quality
Internal Procedures
Management Tools
Relationships with Suppliers
Relationships with Clients and Consumers
Operation Sector
Macroeconomic Scenario in Brazil, Argentina, the United States and Australia
The World Beef Industry
The Beef Industry in Brazil, Argentina, the United States, and Australia
Sector Regulation
JBS as an Investment
Strategies and Competitive Advantages
Operational and Financial Performance
Capital Market
Risk Management
Investments and Prospects
Corporate Governance
Personnel Management
Corporate Responsibility
Glossary
Corporate Information
Financial Statements
Credits
1. HsIrce 185
JBS History
51,4 mil cabeas/dia:
primeira do mundo em
capacidade de abate
'^ ||ousu|u |ouu/uu,
vo||u |ouuo| | s|uug||o||g cupuc|,
16
153
18
181
170
153
Jos Batista Sobrinho iniciou as operaes de uma pequena
planta de abate, na Cidade de Anpolis (GO), com
capacidade de abate de 5 cabeas de gado por dia.
18
Aquisio da primeira planta de abate em Planaltina (DF).
170
Com a aquisio da planta de abate em Luzinia (GO), a
capacidade salta para 500 cabeas de gado por dia.
181 a 2002
Expanso signicativa nas operaes no Brasil por meio de
aquisies de plantas de abate e unidades produtoras de carne
in natura e industrializada, bem como investimentos no aumento
da capacidade produtiva. Nesse perodo, a capacidade de
abate alcanou a marca de 5,8 mil cabeas/dia.
2004
Aquisio de 50% da BF Alimentos.
2005
Reestruturao do Grupo Friboi com a criao da JBS S.A..
Perodo em que se iniciou o processo de internacionalizao
com a aquisio da Swift Armour S.A., maior produtora e
exportadora de carne bovina na Argentina.
200
Aquisio de mais duas unidades na Argentina (Venado Tuerto
e Pontevedra).
Continuidade do aumento na capacidade de abate,
chegando a 22,6 mil cabeas/dia num total de 21 plantas
no Brasil e 5 na Argentina.
Jos Batista Sobrinho began operations at a small slaughtering
plant, in the city of Anpolis (state of Gois), with a 5 head/
day capacity.
Acquisition of the rst slaughtering plant in Planaltina (Distrito
Federal).
With the acquisition of the Luzinia (state of Gois) plant,
slaughtering capacity increased to 500 head of cattle per day.
Signicant 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.
Acquisition of 50% of BF Alimentos.
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., Argentinas largest beef producer
and exporter.
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.
Uma histria caracterizada pela gesto de forte pioneirismo reconhecido no setor de carnes,
pelo crescimento acelerado da capacidade de abate e pela expanso das atividades por
meio de aquisies no Brasil e no exterior
JBS has a history characterized by the strong management of innovation recognized
throughout the beef sector, by accelerated growth in its slaughtering capacity, and by the
expansion of its operations through domestic and foreign acquisitions
JBS S.A. Relatrio Anual 2007 Annual Report 17
2002
2004
2005
200
2007
2008
2007
IPO em abril.
Aquisio de duas unidades na Argentina (Berazategui e Colonia Caroya).
Aquisio da distribuidora de alimentos SB Holdings.
Aquisio de mais uma unidade no Brasil, em Maring (PR).
Aquisio da Swift Foods Company, que passou a ser chamada JBS USA.
Importantes aquisies nacionais e internacionais de plantas de abate e plantas industriais
no segmento de alimentos de origem de carne bovina e embalagens para produtos JBS.

Aquisio, em dezembro, de 50% da Inalca, uma das maiores produtoras de carne
bovina da Europa.
Eventos Subseqentes
2008
Anncio da compra das empresas norte-americanas
National Beef e Smithel, e da australiana Tasman,
consolidando assim a sua liderana mundial no setor
de carnes. Essas aquisies representam a concluso
do plano de investimentos para a construo de
uma sustentvel plataforma de abate, produo e
comercializao de carne nos EUA e na Austrlia, que
se iniciou em julho de 2007 atravs da aquisio da
Swift & Company.
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 Maring (state of Paran).
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 Smitheld Beef, and the
Australian company Tasman were announced, consolidating JBSs 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.
Atualmente, a JBS a maior produtora de carne bovina do
mundo, com uma capacidade de abate de 51,4 mil
cabeas/dia (no considerando as aquisies da National
Beef, Smitheld Beef e Grupo Tasman). , ainda, a maior
exportadora mundial de carne bovina, com acesso a todos os
mercados mundiais e plataformas de produo nos 4 maiores
pases produtores do mundo (Brasil, Argentina, EUA e Austrlia).
A Companhia produz carne bovina in natura, carne
industrializada, pratos elaborados, vegetais em conserva,
subprodutos de origem bovina, alm de carne suna in
natura. lder em vendas de carne bovina nos mercados
domsticos brasileiro, argentino e australiano, e tambm
a terceira maior empresa de carne bovina no mercado
americano. Com capacidade de abate de 47,9 mil
sunos/dia, a JBS se tornou a terceira maior empresa de
carne suna nos Estados Unidos.
As operaes da Companhia so realizadas em diversas
plantas localizadas no Brasil, Argentina, Estados Unidos e
Austrlia, o que proporciona acesso a todos os mercados
consumidores do mundo, exibilidade operacional de
produo, baixos custos de transporte tanto do gado at as
plantas como dos produtos at os clientes, e um menor risco
de eventuais problemas tossanitrios.
A companhia possui uma estrutura de baixo custo, ciclo
operacional eciente e produtos de alta qualidade.
Atualmente, as unidades esto dispostas da seguinte maneira:
19 plantas de abate localizadas nos Estados brasileiros
do Acre, Gois, Mato Grosso, Mato Grosso do Sul,
Minas Gerais, Rondnia, So Paulo e Paran, sendo
Currently, JBS is the worlds largest beef producer, having
a slaughtering capacity of 51.4 thousand head/day
(not including the recent acquisitions of National Beef,
Smitheld Beef and the Tasman group). It is also the
largest beef exporter in the world, having access to all the
worlds 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 Companys operations are carried out at several
plants located in Brazil, Argentina, the U.S. and
Australia, which gives it access to all of the worlds
consumer markets, 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, efcient operation
cycle, and high quality products.
At present, the Companys plants are distributed as follows:
19 slaughtering plants located in the Brazilian states of
Acre, Gois, Mato Grosso, Mato Grosso do Sul, Minas
Gerais, Rondnia, So Paulo and Paran, ve of which
also have processed beef production plants;
1953 1970 2002 2006 2007
5
5
500
500
5.800
5,800
22.600
22,600
51.400
51,400
Crescimento da Capacidade de Abate (cabeas/dia)
Increase in Slaughtering Capacity (head/day)
JBS Hoje JBS Today
que cinco dessas plantas possuem tambm unidades
produtoras de carne industrializada;
uma planta de carne em conserva localizada no Estado
do Rio de Janeiro, Brasil;
uma planta de vegetais em conserva no Estado de Minas
Gerais, Brasil;
um connamento localizado no Estado de So Paulo, Brasil;
uma planta de Beef Jerky localizada no Estado de So
Paulo, Brasil;
seis plantas de abate localizadas em quatro provncias
da Argentina (Buenos Aires, Entre Rios, Santa F e
Crdoba), sendo que 5 dessas plantas possuem tambm
unidades produtoras de carne industrializada;
uma planta produtora de embalagens metlicas na
Provncia de Buenos Aires, Argentina;
quatro plantas de abate de carne bovina nos Estados
americanos de Colorado, Utah, Texas e Nebraska;
trs plantas de abate de carne suna nos Estados
americanos de Minnesota, Iowa e Kentucky;
uma planta de carne porcionada (case ready) no Estado
da Califrnia, EUA;
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 So Paulo, Brazil;
1 beef jerky plant located in So Paulo state, Brazil;
6 slaughtering plants located in four provinces of
Argentina (Buenos Aires, Entre Rios, Santa F and
Crdoba), 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
Minnesota, Iowa, and Kentucky;
1 case-ready beef plant in the U.S. state of
California;
uma planta de carne ovina no Estado do Colorado, EUA;
uma planta de produo de Wet Blue (couro) no Estado
do Texas, EUA;
duas plantas de Beef Jerky localizadas nos Estados
americanos de Minnesota e Texas;
quatro plantas de abate de carne bovina no Estado
australiano de Queensland;
quatro connamentos de bovinos nos Estados australianos
de Queensland e New South Wales.
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;
Distribuio Atual das Unidades JBS
Current Distribution of JBS Units
Austrlia / Australia
Brasil / Brazil
Argentina / Argentina
EUA / USA
23 23
8 8
12 12
7 7
Nmero de Plantas
Number of Plants
2006 2007
26
50
Planta em Andradina (SP)
Andradina Plant
2. Perh| CerpercIve
Corporate Prole
Produo de carne cozida industrializada
Cooked and processed beef plant
|uu|o| o| p|u||s |o|u|ou '0 | 200.,
so|vc|g o|||o g|o|u| uu||o|
50 unidades
Nmero de plantas
em 2007 alcanou
que atendem a todo o
mercado global
A
JBS a maior multinacional brasileira na rea de
alimentos, dedicando-se a produzir carne bovina
in natura e resfriada, carne bovina industrializada,
carne suna in natura e resfriada, alm de subprodutos
bovinos e sunos.
Em 2007, a JBS consolidou-se como a maior empresa do
mundo no setor de carne bovina com a aquisio da Swift &
Company nos Estados Unidos e na Austrlia. A Companhia
alcanou, ainda, a marca de primeira do mundo em
capacidade de abate 51,4 mil cabeas por dia e manteve
o destaque nas operaes de produo, processamento e
exportao nas plantas nacionais e internacionais.
Com a nova aquisio, a JBS ingressou no mercado de carne
suna apresentando um expressivo desempenho tambm
nesse segmento ao encerrar o exerccio como o terceiro
maior produtor e processador deste tipo de carne nos EUA. A
aquisio aumentou o portflio da Companhia ao incluir os
direitos sobre a marca Swift em nvel mundial.
A JBS est inserida em 100% dos mercados consumidores
do mundo graas sua estrutura produtiva, com plantas
instaladas nos 4 principais pases produtores de carne
bovina Brasil, Argentina, EUA e Austrlia bem como pela
liderana nas exportaes, que atendem a 110 pases.
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
JBSs portfolio by giving the Company the right to use the Swift
brand worldwide.
JBS has a presence in 100% of the worlds 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.
Em 2007, a JBS tornou-se a maior empresa de carne bovina
do mundo, ingressou no mercado de carnes sunas com
expressivo desempenho e rearmou seu esprito pioneiro ao
ser a primeira empresa do setor a abrir capital
In 2007, JBS became the largest beef producer in the world,
entering the pork market with an impressive performance,
and reafrming its pioneering spirit by becoming the rst
company of the sector to go public
Distribuio de Vendas por Diviso (2007)
Sales by Division (2007)
2% 2% 2% 2% 2% 2% 2%
15% 15%
18% 18%
19% 19%
46% 46%
Carne Bovina EUA/ U.S. Beef
Carne Bovina Brasil / Brazil Beef
Carne Suna EUA / U.S. Pork
Carne Bovina Austrlia / Australia Beef
Carne Bovina Argentina/ Argentina Beef
Sede da JBS EUA, Greeley - Estados Unidos
JBS USA Headquarter, Greeley - United States
O sucesso da Companhia sustentado pelo esprito
empreendedor e pelo pioneirismo bastante marcantes na
gesto da JBS:
A Companhia foi a primeira a se consolidar no setor de
frigorcos no Brasil;
A viso estratgica, com foco na poltica de expanso,
iniciou a internacionalizao da Companhia a partir de
2005 com a aquisio da Swift Argentina;
Com a abertura de capital em 2007, a JBS reforou
o pioneirismo sendo a primeira companhia no setor
frigorco a negociar suas aes em bolsa de valores.
The Companys success is sustained by its enterprising
spirit and by the innovation demonstrated so clearly by its
management:
The Company was the rst to consolidate the meat
packing industry in Brazil;
The strategic vision, with its focus on the expansion policy,
began the Companys internationalization in 2005 with
the acquisition of Swift Argentina;
By going public in 2007, JBS reinforced its reputation as
a pioneering company, becoming the rst company from
the meat packing sector to publicly trade its shares on a
stock market.
Plantas instaladas nos 4
principais pases produtores de
carne bovina: EUA, Austrlia,
Argentina e Brasil
Production plants in the 4 main
beef-producing countries:
the United States, Australia,
Argentina, and Brazil
Tambm esto incorporados gesto JBS a busca pela
modernizao, qualidade dos produtos e matrias-primas,
construo de mais e melhores relaes com parceiros,
clientes, colaboradores e sociedade, a satisfao de
seus acionistas e o compromisso com questes de
responsabilidade scio-ambiental.
Hoje, a JBS atua nos segmentos de alimentos e transportes,
somando, em todos os pases em que est presente, mais
de 40 mil funcionrios que contribuem para o sucesso da
Companhia. Com as 3 ltimas aquisies da empresa
Smitheld Beef, National Beef e Tasman o nmero de
funcionrios ultrapassar a marca de 60 mil.
As operaes da JBS esto estruturadas em cinco
segmentos: Diviso Alimentos Brasil, Diviso Alimentos
Argentina, Diviso Alimentos EUA, Diviso Alimentos
Austrlia e Diviso Transporte.
Other priorities of JBSs 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 Companys success, considering all of the
countries in which it is present. With the Companys last three
acquisitions Smitheld Beef, National Beef and Tasman
the number of employees will surpass 60,000.
JBSs operations are separated into 5 divisions: Diviso
Alimentos Brasil (Brazil Food Division), Diviso Alimentos
Argentina (Argentina Food Division), Diviso Alimentos EUA
(U.S. Food Division), Diviso Alimentos Austrlia (Australia
Food Division), and Diviso Transporte (Transport Division).
Rosrio - Provncia de Santa F, Argentina
Rosrio - Provncia de Santa F, Argentina
Produz uma ampla linha de industrializados e de cortes
nobres de carne in natura com grande penetrao no
mercado brasileiro e internacional. Toda a produo
segue rgido controle de qualidade e atende a padres
tossanitrios internacionais.
A manipulao de carnes realizada em salas
climatizadas e as cmaras de resfriamento ou congelamento
tm temperatura controlada por sistemas totalmente
computadorizados.
Programas de controle para Limpeza e Higienizao (PPHO
- Procedimento Padro de Higiene Operacional), Treinamento
de Pessoal (GMP - Good Manufacture Practice), Anlise
de Perigos e Pontos Crticos de Controle (HACCP - Hazard
Analysis and Critical Control Point), alm do Programa de
Qualidade Total Friboi (TQF) so realizados permanentemente
para assegurar a qualidade dos produtos.
Adicionalmente, as carcaas so inspecionadas por
mdicos veterinrios do Servio de Inspeo Federal do
Ministrio da Agricultura SIF para emisso de autorizao
para a produo e processamento. Complementando o
acompanhamento de sanidade e rastreabilidade da matria-
prima, os processos so submetidos a controle efetuado por
modernos laboratrios e tcnicos experientes nas unidades
industriais JBS.
Em 2007, a unidade Beef Snacks do Brasil foi inaugurada
para produzir o aperitivo Beef Jerky, ampliando a gama de
produtos da Diviso Alimentos Brasil.
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 Servio de Inspeo Federal do Ministrio da
Agricultura (SIF - Agriculture Ministrys 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
JBSs facilities.
In 2007, the Beef Snacks do Brasil plant was founded to
produce the Beef Jerky snack, broadening the variety of the
Diviso Alimentos Brasils products.
Diviso Alimentos Brasil Brazil Food Division
Embarque de produtos para exportao
Transport of products for export
Diviso Alimentos Brasil
Carne in natura
Maturatta Organic Beef Friboi Swift Anglo
Cortes especiais para
churrasco resfriados,
limpos, desossados e
embalados a vcuo
15 opes de cortes de
gado orgnico embalados
a vcuo e uma opo de
corte congelado
Mais de 70 opes de
cortes tradicionais com padro
exportao, comercializado
para 100 pases
Feijoada em lata,
embutidos, hambrgueres
bovinos, hambrgueres de
frango, salsicha em lata
Almndegas em lata,
Salsichas Viena, feijoada em
lata, embutidos, carne bovina
em conserva, pats em lata
Carne Industrializada
Brazil Food Division
Fresh beef
Maturatta Organic Beef Friboi Swift Anglo
Special cuts for
grilling, chilled, cleaned,
deboned, and
vacuum sealed
15 organic
vacuum-sealed beef cuts,
one frozen organic
cut option
More than 70 traditional
cuts options for export,
sold in 100 countries
Canned feijoada,
sausages, beef and
chicken burgers,
canned sausages
Canned meatballs, Vienna
sausages, canned feijoada,
cased food products, canned beef,
and canned pts
Processed beef
A Swift Armour S.A. foi fundada em 1907, e participou em
1996 do programa NFPA-SAFE, da National Food Processor
Association, tornando-se o primeiro frigorco da Argentina a
cumprir as normas estabelecidas pela ISO 9001:2000 em
todo o seu processo produtivo.
Em 2005, foi adquirida pela JBS e atualmente denomina-se
JBS Argentina, sendo formada por 6 Unidades Industriais:
Rosrio, Venado Tuerto, So Jos, Ponte Vedra, Berazategui e
Col-Car, alm de uma Unidade Industrial de embalagens em
lata, localizada em Zrate.
A JBS Argentina a empresa lder na produo de alimentos
base de carne no pas, alm de ser a primeira em
exportao de carne bovina, sempre reconhecida pela alta
qualidade dos produtos destinados ao mercado domstico
e tambm ao mercado internacional. A capacidade de
abate da JBS Argentina de 6.700 cabeas por dia, com
produo de 300.000 toneladas de carne por ano.
As plantas produtivas tm localizao estratgica, nas
regies de maior concentrao de gado nas provncias onde
esto instaladas. Tambm so equipadas com tecnologia de
ponta no processamento de carnes resfriadas, congeladas e
produtos industrializados.
O objetivo da JBS Argentina desenvolver, produzir e
comercializar alimentos base de carne com alto valor
agregado, saudveis, seguros e saborosos, destinados tanto
aos consumidores nais quanto s grandes empresas de
alimentao.
Procurando inovar e acompanhar as tendncias das grandes
empresas de alimentos no mundo todo, a JBS Argentina
adota os mais completos e rigorosos sistemas de controle
sanitrio e de qualidade, desde a rastreabilidade dos
animais at a embalagem do produto, passando por todas
as etapas do processo produtivo.
Swift Armour S.A. was founded in 1907 and in 1996
participated in the National Food Processor Associations
NFPA-SAFE program, becoming the rst 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, So Jos, Ponte Vedra,
Berazategui and Col-Car, as well as a tin package plant
located in Zrate.
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 Argentinas 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 Argentinas 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.
Diviso Alimentos Argentina Argentina Food Division
Diviso Alimentos Argentina
Carne in natura
Swift Exeter ACE La Blanca
Cabaa
Las Lilas
Plate Swift
Carne cozida e congelada, carne IQF
(Individual Quick Frozen), carne enlatada,
hambrgueres, salsichas, extrato de
carne e caldo de carne
Carnes resfriadas e congeladas, cortes
especiais, Hilton Cuts e midos
Argentina Food Division
Fresh Beef
Swift Exeter ACE La Blanca
Cabaa
Las Lilas
Plate Swift
Frozen and cooked beef, IQF
(Individual Quick Frozen) beef, canned meat,
hamburgers, sausages, beef extract,
and beef broth
Chilled and frozen meats,
special cuts, Hilton Cuts and offal
Processed Beef
Garantia de Qualidade
Guaranteed Quality
Em julho de 2007, a JBS S.A. realizou a aquisio da Swift
Foods & Company, transformando-se na maior empresa em
alimentos de origem bovina e lder absoluta na exportao
mundial neste setor.
A Swift & Company, hoje denominada de JBS EUA,
reconhecida por fornecer produtos de origem bovina e
suna com qualidade h 150 anos. uma indstria pioneira
em idias, produtos e tecnologia. O foco da Diviso est
em desenvolver e fornecer alimentos bovinos e sunos com
praticidade e sabor.
Alm de abastecer o maior mercado consumidor de carne
e pratos industrializados, como tambm de carne fresca, a
JBS EUA representa uma diversicao das operaes da
Companhia com a oportunidade de explorao do segmento
de carne suna.
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 USA, has been a
recognized provider of beef and pork quality products for
more than 150 years. Its 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 worlds largest meat and
ready-to-eat meals consumer market, as well as fresh beef
consumer market, JBS USA represents diversication of the
companys operations with the opportunity to exploit the
pork segment.
Diviso Alimentos EUA U.S. Food Division
Diviso Alimentos EUA
Sunos
G.F Swift 1855 Brand Black Angus
TM
,
Swift Premium
Black Angus, Swift
Angus
Select, Swifts Angus Guaranteed Tender
Swift Premium
, Guaranteed Tender
e Swift
Natural Fresh Pork

Bovinos
U.S. Food Division
Swine
G.F Swift 1855 Brand Black Angus
TM
,
Swift Premium
Black Angus, Swift
Angus
Select, Swifts Angus Guaranteed Tender
Swift Premim
, Guaranteed Tender
and Swift
Natural Fresh Pork

Beef
Com 4 unidades de abate e 4 de connamento de bovinos
instaladas na Austrlia, a JBS rearma sua trajetria de
sucesso em aquisies, contribuindo para a conquista da
liderana mundial.
A JBS Austrlia a maior e mais abrangente processadora
e exportadora australiana de carne, mantendo relaes
comerciais com mais de 30 pases, com destaque para a
atuao na costa do Pacco e Amrica do Norte. Alm
disso, os cuidados com a sade e a higiene nas plantas
produtivas e o reconhecimento da qualidade do gado e da
carne australianos tm permitido a rpida expanso para
novos mercados.
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 Pacic
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.
Diviso Alimentos Austrlia Australia Food Division
Diviso Alimentos Austrlia
Bovinos
Fed, Middle Fed, Long Fed e Marbling
Scores, Swift, AMH, Beef City
Australia Food Division
Beef
Fed, Middle Fed, Long Fed e Marbling
Scores, Swift, AMH, Beef City
Para dar suporte s operaes da JBS em todos os
procedimentos, a Companhia desenvolveu uma ecaz
estrutura prpria de logstica, que otimiza desde a busca
do gado nas unidades fornecedoras at a distribuio
dos produtos em territrio nacional, alm do transporte de
contineres aos portos para exportao.
A Diviso adota mtodos de forma a garantir a segurana e
a preservao da qualidade do gado durante o transporte,
bem como conservar as caractersticas dos produtos nais no
momento da distribuio, transportando cada tipo do produto
do mix em veculos modernos que propiciam condies de
temperatura adequadas. Tambm faz parte das atribuies
da Diviso desenvolver mecanismos de controle de custos e
economia de escala para otimizar a operao.
In order to support JBSs 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.
Diviso Transporte Transport Division
Frota de busca
Collecting eet
A JBS uma empresa de alimentos com foco na produo de
carne bovina in natura e industrializada, manipulada dentro de
rigorosos padres de higiene e comercializada em embalagens
prticas, higinicas e em pores adequadas ao consumo.
Carne bovina in natura
Cortes resfriados e congelados, incluindo picanha, costela,
l mignon, cortes dianteiros, midos de boi entre outros.
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.
Linha de Produtos Product Line
A JBS desenvolveu uma
ampla linha de produtos
industrializados e de
carne bovina in natura,
seguindo rgidos padres
de qualidade, higiene e
segurana
JBS has developed a
broad line of fresh and
processed beef products,
according to high
standards for quality,
hygiene, and safety
Marcas JBS de carne in natura:
Maturatta: lder no mercado de cortes especiais para churrasco,
em virtude da qualidade e sabor dos produtos. So nove
opes de cortes resfriados, limpos e desossados: picanha,
miolo de alcatra, l mignon, cupim, picanha fatiada, granito,
fraldinha, maminha e costela trs ripas. Os produtos so
embalados a vcuo e prontos para levar grelha.
Organic beef: com o slogan Especial por Natureza,
segue a tendncia de produtos ecologicamente corretos
oferecendo 15 opes de cortes especiais de carne in
natura proveniente de gado orgnico e embalados a vcuo,
alm de uma opo de corte congelado. O gado orgnico
tem procedncia garantida pela Associao Brasileira
dos Produtores de Animais Orgnicos (Aspranor), sendo
alimentado em pastos adubados organicamente e criado
com cuidados especiais, resultando em cortes mais tenros.
Friboi: marca fortemente reconhecida no mercado, distribuda
em larga escala, com mais de 70 tipos de cortes de carne.
Cabaa Las Lilas: reconhecida internacionalmente como a
melhor carne argentina, a marca passou a fazer parte do
portflio JBS com a aquisio da Swift Argentina, em 2005.
Swift Angus Select: marca com qualidade certicada
pelo USDA e reconhecida pela nobreza de cortes magros,
tenros e macios.
JBS fresh beef brands include:
Maturatta: lthe 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 certied 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.
Cabaa Las Lilas: Internationally recognized as the best
Argentine beef, the brand came into JBSs 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.
Marcas de renome que oferecem alimentos adequados s
principais necessidades do consumidor: praticidade, sabor
e sade, inclusive com produtos de origem orgnica
Well recognized brands that offer food products
corresponding to the primary needs of consumers:
practicality, taste, and health, including organic products
Produtos derivados de carne, como carne cozida e
congelada, em conserva, extratos de carne, carne
industrializada (hambrguer, quibe, salsichas e mortadela) e
pratos prontos. Com instalaes e processos adequados ao
mercado internacional, a JBS exporta carne industrializada
para os 5 continentes e ocupa a liderana nas exportaes
brasileiras de carne bovina.
Marcas JBS de carne industrializada:
Swift: marca tradicional, sendo a pioneira no Brasil e
Argentina a oferecer pratos prontos. A linha de produtos
inclui feijoada, salsicha, ambre, presuntada, pats de
diversos sabores em lata e em vidro e hambrguer.
Anglo: salsichas tipo Viena, feijoada, ambre, carne bovina em
conserva, pat de presunto em lata e almndegas ao molho.
Sola: no mercado desde 1949, sinnimo de tradio e
praticidade, oferecendo produtos de sucesso como: Salsicha
Viena Carioca, Mortadela Fluminense, Carne Bovina em
Conserva Taya e Taya Nuevo, alm do Fiambre Kitut, um dos
preferidos dos consumidores e cone da categoria.
Exeter: marca de carne em conserva com grande
participao e aceitao no mercado africano.
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,
pts of various avors in cans and in jars and hamburger.
Anglo: Viena sausages, feijoada, cold-cuts, canned beef,
canned ham pt, 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.
Atualmente, a JBS est presente em todos os continentes por
meio das unidades industriais e centros de distribuio. A
sede da Companhia est localizada em So Paulo (SP),
concentrando a rea de apoio corporativo.
Produo
Com foco no crescimento e na expanso geogrca das
suas atividades, a JBS distribui suas operaes produtivas
em 23 plantas localizadas em 9 estados no Brasil, 7 plantas
localizadas em 4 provncias na Argentina, 12 plantas nos
Estados Unidos e 8 plantas na Austrlia. A aquisio de
todas as unidades foi norteada pela estratgia de se instalar
nas regies com maior concentrao de gado visando
exibilidade operacional de produo, reduo de custos de
transporte do gado e do produto pronto, bem como reduo de
riscos tossanitrios.
A localizao estratgica das plantas um dos fatores
que colocam a JBS em posio de vantagem no mercado,
apresentando uma estrutura de produo de custos enxutos com
ecincia operacional.
Excelncia em Logstica
Faz parte da estrutura JBS uma rede prpria de unidades de
apoio logstico para a distribuio dos produtos, que contribuem
para o controle de custos operacionais. A rede est assim
constituda: 4 centros de distribuio no Brasil, sendo 3 no
estado de So Paulo e um no estado de Minas Gerais; um ptio
de contineres localizado prximo ao porto de Santos, para
otimizar as exportaes; um ptio de contineres na cidade
de Cubato; 9 centros de distribuio nos Estados Unidos; 6
centros de distribuio na Austrlia; subsidirias no Chile, Egito,
Inglaterra, Japo, Hong Kong, Coria do Sul, Taiwan e China,
responsveis pela distribuio e comercializao nesses pases.
Currently, JBS is active on all 5 continents, through its industrial
plants and distribution centers. The Companys headquarters
are located in the city of So Paulo (state of So 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 Companys
strategy to be in regions with the greatest concentrations of
cattle in order to promote operational exibility in production,
reduction of cattle and nished 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 efciency.
Excellence in Logistics
An important part of JBSs 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 So 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 Cubato; 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.
Localizao e reas de Atuao Operation Location and Areas
Vendas e Mercado Sales and the Market
32% 32%
68% 68%
Mercado Domstico / Domestic Market
Mercado Internacional / International Market
Destino das Vendas JBS em 2007
JBS Sales by Market in 2007
Mercado Interno
Os clientes JBS no Brasil so, principalmente,
grandes varejistas, restaurantes e curtumes.
A Companhia criou o Programa Aougue
Nota 10, que visa criar um relacionamento
slido com os compradores e consolidar a marca entre os
consumidores nais. A Companhia tambm investe ativamente
nas marcas Swift e Maturatta, bem como na difuso do conceito
Organic Beef junto ao trade e aos consumidores.
Atualmente, fazem parte da carteira de clientes JBS mais de
6.000 empresas no mercado interno.
Domestic Markets
JBSs clients in Brazil are primarily large retailers, restaurants,
and tanneries. The Company created the Programa Aougue
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.
JBSs portfolio currently includes more than 6,000 domestic
market companies.
Na Argentina, a JBS comercializa marcas
prprias e de terceiros, dentre as quais se
destacam: Swift, Cabaa Las Lilas, Armour,
Plate, Fray Bentos, Safra, Exeter e Corte
Buona. Com essas marcas, a Companhia lder absoluta
no mercado domstico no segmento de carne em conserva,
com participao de 77% nas vendas em 2007. Nesse
ltimo ano, a marca Swift aumentou suas vendas no mercado
interno em todas as linhas de produtos, principalmente
hambrgueres e salsichas.
A carteira de clientes na Argentina formada por 786
empresas, entre elas as principais redes de hipermercados e
supermercados no pas, alm de atacadistas e distribuidores
presentes em todo o territrio argentino.
A JBS USA comercializa marcas reconhecidas
em nvel global pelo alto padro de qualidade
dos produtos, sempre focados na inovao
para agregar valor s vendas dos clientes ao
disponibilizar produtos saborosos e prticos aos consumidores.
A carteira de clientes constituda por grandes redes
atacadistas, algumas delas atuando em diversos pases.
Na Austrlia, o mercado domstico possui
relevncia estratgica e apresenta grande
potencial de crescimento. A JBS atua nesse
mercado com marcas fortes e produtos
diversicados, voltados a um pblico consumidor exigente,
em crescimento e com alto poder de consumo.
In Argentina, JBS sells its own brands and those of third
parties, among which Swift, Cabaa 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 diversied products to this market, aimed at a
demanding consumer public that is growing and has a high
level of purchasing power.
Mercado Externo
A JBS a maior empresa exportadora de
produtos de origem bovina no Brasil, com receita
de US$ 1,1 bilho em 2007, segundo dados do
SECEX. Tambm ocupa a 22 posio entre as
principais exportadoras brasileiras em todos os setores.
Assim como no comrcio domstico, no h concentrao de
mercado nas exportaes.
Foreign Market
JBS is Brazils 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 JBSs foreign market.
Lder mundial de exportaes
no setor de carne bovina,
atendendo a 110 pases
World leader in beef export,
servicing 110 countries
Mais de 1 milho
de bois adquiridos a termo
entre 2004 e 2007
/o|o ||u| u u||o| |ouu ucu|ou |||oug|
|u|u|os co|||uc|s |o|voo| 200^ u|u 200.
Conquistar o reconhecimento e a conana nas marcas da
JBS, atravs da qualidade dos nossos produtos e do perfeito
atendimento aos nossos clientes, garantindo a moral dos
nossos colaboradores e a segurana dos consumidores,
respeitando as leis e o meio ambiente.
Para cumprir com essa poltica, a Companhia se empenha no
programa de Garantia de Qualidade da JBS, que contempla:
Atendimento aos requisitos de mercados e de clientes;
Implantao e manuteno dos programas da qualidade;
Monitoramento da higiene das instalaes e dos
manipuladores;
Controle sanitrio;
Monitoramento da qualidade dos produtos por meio de
anlises fsico-qumicas e microbiolgicas (laboratrio);
Garantia da qualidade do produto nal, por meio de
controles desde o recebimento do produto at a sua
expedio.
A JBS considera como requisitos de mercados e clientes:
Atendimento a legislaes especcas do pas
importador;
APPCC (Anlise de Perigos e Pontos Crticos de Controle)
implantado e mantido;
Controles microbiolgicos;
Garantia de produto seguro ao consumidor;
To achieve recognition of and trust in JBS brands, through
the quality of our products and excellent service to our clients,
ensuring the morale of our employees and the safety of
consumers, and respecting the law and the environment.
To carry out this policy, the Company strives to meet the
goals of JBSs Garantia de Qualidade (Guaranteed Quality)
Program, which include:
Meeting the requirements of our clients and the markets;
Implementation and maintenance of specic quality
programs;
Monitoring the hygiene of facilities and processors;
Sanitary control;
Monitoring of product quality through laboratory physical-
chemical and microbiological analyses;
Ensuring the quality of the end product, through control
measures in force from reception through expedition of a
product.
JBS denes client and market requirements as:
Meeting the specic regulations of importing countries;
Implementing and maintaining HACCP (Hazard Analysis
and Critical Control Point);
Microbiological controls;
Ensuring safety products to consumers;
Procedimentos Internos Internal Procedures
Poltica de Qualidade JBS JBSs Quality Policy
Implantao de Programas de Qualidade especcos
como: Alergnicos, GMO (Genetically Modied
Organisms - Organismos Geneticamente Modicados),
MRE (Material de Risco Especco), Bem-Estar Animal, etc.;
Certicao BRC (British Retail Consortium Norma
Mundial tcnica de alimentos);
Realizao de misses sanitrias nas unidades, entre outros.
Para assegurar a qualidade e a segurana alimentar
dos produtos, a JBS dissemina internamente programas e
procedimentos:
BPF Boas Prticas de Fabricao;
PPHO Procedimento Padro de Higiene Operacional;
PSO Procedimento Sanitrio Operacional;
APPCC Anlise de Perigos e Pontos Crticos de Controle.
Na Argentina, por exemplo, a empresa foi pioneira ao
conquistar a certicao ISO 9002 para seu procedimento
de garantia da qualidade e segurana alimentar desenvolvido
internamente. Tambm foi inovadora ao conquistar a
certicao ISO 9001:2000 para os processos de produo,
embalagens, venda e logstica para exportao.
Ferramentas de Gesto

Para garantir a qualidade do produto nal, a JBS conta
com um eciente controle de procedncia do gado,
transporte e produo industrial com cuidados de higiene.
Da brincagem comercializao, os produtos com a marca
JBS passam por modernos processos de industrializao,
conservao e transporte.
A excelncia dos produtos JBS conta tambm com
ferramentas fundamentais: estrutura logstica e tecnologia
da informao para gesto de dados e otimizao de
processos.
Implementing specic quality programs, such as: Allergens,
GMO (Genetically Modied Organisms), SRM (Specied
Risk Material), Animal Well-Being, etc.;
BRC (British Retail Consortium) certication;
Receiving sanitary inspection teams at units, among other
measures.
To ensure the quality and alimentary safety of its products, JBS
internally disseminates programs and procedures, such as:
GMP Good Manufacturing Practices;
SSOP Sanitation Standard Operating Procedures;
SOP Sanitation Operating Procedures;
HACCP Hazard Analysis and Critical Control Point.
In Argentina, for example, the company was a pioneer in the
industry in gaining ISO 9002 certication for its internally
developed procedures to ensure the quality and alimentary
safety of its products. It was also an innovator in achieving
ISO 9001:2000 certication for its production, packaging,
sales, and export logistics procedures.
Management Tools

In order to guarantee the quality of end products, JBS has
an efcient system for controlling cattle origin, transport, and
industrial production, all with attention to hygiene issues.
From cattle tagging to nal sale, JBS products are subject
to modern procedures of processing, preservation, and
transport.
The overall excellence of JBS products is also due to
fundamental resources such as the Companys logistical
structure and the information technology it uses to manage
data and optimize procedures.
No Brasil, por exemplo, os fornecedores de gado na carteira
na JBS somam cerca de 12.750 criadores. Seguindo os
princpios de garantia da segurana do gado e qualidade
da carne, os criadores esto localizados em um raio de at
500 quilmetros das plantas de abate.
Nas operaes na Argentina, o gado adquirido em feiras
e tambm de aproximadamente 1.600 criadores localizados
em um raio de at 350 quilmetros das plantas de abate.

J os fornecedores da JBS EUA constituem uma carteira
selecionada, com centros de criao que fazem parte de
redes maiores de fornecimento de carne naquele pas.
Nas operaes da Austrlia, o gado adquirido de uma
carteira de mais de 10.000 fornecedores.
Em todas as operaes, a JBS tem uma equipe especializada
na compra de gado. Os criadores so selecionados a
partir de rigorosos critrios, entre eles a exigncia de
documentaes que comprovem a qualidade de suas
operaes, alm da vericao de que a utilizao
de antibiticos e produtos qumicos agrcolas segue os
respectivos padres da indstria.
Produo
Os produtos JBS passam por procedimentos rigorosos
de qualidade e segurana alimentar e as instalaes de
processamento operam de acordo com estritos padres
sanitrios. Esse esforo visa o cumprimento das exigncias de
clientes nacionais e internacionais, bem como os requisitos
governamentais de segurana nos pases em que atua.
In Brazil, for example, there are approximately 12,750
cattle breeders among our suppliers portfolio. In line with
our safety and quality policies and principles, these breeders
are located at a range of no more than 500 kilometers from
slaughtering plants.
In Argentina, cattle are acquired at fairs and also from
approximately 1,600 breeders located within 350 kilometers
of slaughtering plants.
JBS USAs providers, on the other hand, are part of a select
portfolio, coming from breeding centers that comprise the
largest supplier networks in that country.
In our Australian operations, cattle are acquired from a
portfolio of more than 10,000 suppliers.
In all of its operations, JBS uses specialized teams to purchase
cattle. Selection of breeders is based on rigorous criteria,
including requirements of documents evidencing the quality of
their operations, as well as checking that the use of antibiotics
and any chemical agricultural products falls within industry-
approved limits.
Production
JSB products undergo rigorous quality and alimentary safety
procedures at processing plants which are operated in
accordance with strict sanitary standards. This effort is aimed
at meeting the demands of domestic and foreign clients as
well as the safety requirements imposed by the governments in
the countries in which JBS operates.
Matria-prima Raw Material
Procedimentos controlados desde a aquisio da matria-prima at
a entrega do produto, passando pela gesto informatizada dos
processos. Assim se constri a Excelncia na Qualidade JBS
JBSs Quality Excellence is ensured by controlling procedures from the
acquisition of raw material through delivery of end products, which
includes computerized management of processes
As unidades de produo de carne industrializada utilizam
equipamentos modernos e automatizados para processar e
embalar os produtos de carne bovina, com destaque para
a planta localizada na Cidade de Rosrio, Argentina, que
uma das unidades de produo de carne industrializada
mais modernas do mundo.
As instalaes so montadas de forma a garantir a segurana
do trabalho e o cumprimento das regulamentaes,
minimizando eventuais riscos aos funcionrios da JBS.
Adicionalmente, a Companhia est focada em reduzir a
produo de resduos e as emisses e descartes de lixo de
acordo com os padres ambientais aplicveis.
Logstica
Fundamental para a estratgia da JBS em todos os pases
onde atua de expandir sua atuao para novos mercados
e consolidar o atendimento gil, seguro e de qualidade
nos locais em que j atua, a logstica da Companhia est
sempre alinhada com o dinamismo das operaes comerciais
no mundo todo. Por isso, o departamento de logstica
e documentao da JBS trabalha na busca de solues
inovadoras para cumprir com essa misso.
Mercado Domstico
Centro de Distribuio na cidade de So Paulo (SP)
com embarque de cerca de 55 veculos por dia para
distribuio de produtos resfriados e congelados na
grande So Paulo e litoral do estado.

Processed meat production units use modern, automated
equipment to process and package products. One special
example of this is the Rosario, Argentina, plant, which is
one of the worlds most modern processed beef production
plants.

Plants are designed in such a way as to ensure that work is
done safely and that regulations are complied with, which
minimizes potential risks to JBS employees. The Company
is also focused on reducing the production of residuals
and emissions and disposal of waste, in accordance with
applicable environmental standards.
Logistics
A key element of JBSs strategy to expand to new markets
and to consolidate its quality, safe, and agile service in all
of the countries in which it operates, the Companys logistics
structure is always aligned with the dynamic nature of its
trade operations around the world. This is why JBSs logistics
and documentation department seeks innovate solutions to
complete its mission.
Domestic Market
Distribution center in the city of So Paulo, state of So
Paulo, with a 55 vehicle/day capacity, to distribute
chilled and frozen products to the greater So Paulo
region and the coast of the state.
Terminal em Belo Horizonte para abastecer clientes
de pequeno e mdio porte com produtos resfriados,
congelados e secos, nos mercados de varejo e Food
Service. Esse conceito de estrutura logstica est sendo
ampliado para os estados do Rio de Janeiro e Santa
Catarina.
Terminal em Osasco com o mesmo objetivo, operando
exclusivamente com produtos da nossa linha de secos.
As outras regies do Brasil so atendidas diretamente pelas
fbricas JBS por meio de veculos refrigerados e equipados
com segurana e modernidade.
Exportaes
Centro de Distribuio na cidade de So Paulo com
capacidade para 6.500 toneladas, permitindo agilidade
nas operaes com as cargas de exportao.
Terminal de contineres em Santos com capacidade para
mais de 300 contineres refrigerados e secos. O terminal
contribui para a melhora no uxo de mercadorias,
agilizando o manejo desde a coleta do continer at o
embarque da carga.
Terminal de contineres em Cubato, cidade vizinha a
Santos, com 30.000 m e capacidade para armazenar
240 contineres ou 6.000 toneladas de carne, oferecendo
refrigerao adequada. Tambm h espao para 600
contineres vazios e estacionamento para 80 caminhes.
Operaes nos portos de Santos, Itaja e Paranagu.
Terminal in Belo Horizonte, state of Minas Gerais, to
supply small- and mid-sized retail and food service clients
with chilled, frozen, and dried products. This logistics
structure is also being applied in the states of Rio de
Janeiro and Santa Catarina.
Terminal in Osasco, state of So Paulo, having the
same objectives, but dealing exclusively with our dried
product line.
The other regions of Brazil are serviced directly by JBS plants,
through the use of refrigerated trucks which are equipped with
modern and security features.
Exports
Distribution center in the city of So Paulo with a
6,500 ton capacity, allowing agility in cargo export
operations.
Container terminal in Santos (state of So Paulo) with
capacity for more than 300 dry and refrigerated
containers. This terminal contributes to improving goods
ow and speeding up processes from the collection of
containers through the shipping of cargo.
A 30,000 square meter container terminal in Cubato
(state of So Paulo), a city near Santos, with capacity
to store 240 containers or 6,000 tonnes of meat, with
adequate refrigeration. There is also space for 600
empty containers and parking for 80 trucks.
Operations at the ports of Santos, Itaja (state of Santa
Catarina) and Paranagu (state of Paran).
A inaugurao do terminal de contineres em Cubato, com
capacidade para 6 mil toneladas de carne, reforou o potencial
da JBS em atender o mercado externo com segurana, qualidade e
pontualidade
The inauguration of the Cubato container terminal, with capacity for
6,000 tonnes of beef, reinforces JBSs ability to meet foreign market
demands with safety, quality, and punctuality
Estoque e distribuio de produtos no Chile, Egito,
Inglaterra e Rssia.
Iniciativas para o transporte de produtos para exportao
atravs do modal ferrovirio.
Frota prpria de 229 veculos com porta continer,
garantindo qualidade e ecincia no transporte de
produtos para exportao.
Tecnologia da Informao
Com sistema integrado de contas a receber, contas a pagar,
estoques, contabilidade, folha de pagamento e compras
operando em todas as localidades, a JBS realiza uma gesto
precisa e global do uxo de caixa, recebveis e contas a
pagar. A Companhia desenvolve seu prprio software de
gesto, sempre buscando explorar novas alternativas para
aumentar a ecincia e cortar custos por meio de ferramentas
de tecnologia da informao.
Product stocking and distribution in Chile, Egypt, England,
and Russia.
Initiatives for the transport and export of products via
railroad.
JBS has its own eet of 229 container-carrying vehicles,
ensuring quality and efciency in the transport of its
products for export.
Information Technology
With a system that integrates accounts receivable, accounts
payable, inventories, payroll, and purchases at all of its
locations, JBS is able to accurately manage its global cash
ow, accounts receivable and accounts payable. The
Company develops this management software in-house,
always seeking to explore new ways to increase efciency
and to cut costs with its IT tools.
O programa Friboi Quality Farms da JBS no Brasil foi criado
para apoiar a misso da JBS de ser a melhor em tudo o
que se prope a fazer e um exemplo da valorizao
que a empresa atribui aos seus fornecedores. Em mais uma
iniciativa pioneira da Companhia, foi o primeiro frigorco
brasileiro a implementar uma ferramenta de gesto de
qualidade nas fazendas fornecedoras de animais.
O Friboi Quality Farms visa preparar os produtores para
o Global Gap/EurepGAP (Eurep - Euro-Retailer Produce
Working Group e GAP Good Agricultural Practice) e
assegurar 100% da aquisio com animais certicados.
O documento normativo baseado nas boas prticas
agrcolas. O objetivo assegurar integridade, transparncia
e harmonia dos padres globais. Os alimentos devem ser
produzidos respeitando a sade, a segurana e o bem-estar
dos funcionrios sem deixar de observar os cuidados com o
animal e meio-ambiente.
A tendncia que mercados, principalmente externos,
busquem cada vez mais produtos com a certeza de terem
sido produzidos dentro das mais rgidas normas e padres
ticos e de qualidade, aceitos mundialmente.
Relacionamento com Fornecedores
Seleo e Qualicao de Fornecedores:
Friboi Quality Farms
Friboi Quality Farms da JBS no Brasil (JBS Friboi Quality Farms
program) is a program created to support JBSs mission to
be the best in all it sets out to do and is an example of the
importance JBS attributes to its suppliers. In yet another of
the Companys pioneering initiatives, it was the rst Brazilian
meatpacker to implement a quality management tool in the
farms that supply animals.
The Friboi Quality Farms program aims at preparing its
suppliers to meet GlobalGAP/EurepGAP (Global Partnership
for Good Agricultural Practice/Euro-Retailer Produce Working
Group) standards and at ensuring that 100% of its acquired
animals are certied.
The normative document is based on good agricultural
practices. To goal is to ensure integrity, transparency, and
harmony of global standards. Foods must be produced with
respect for the health, safety, and wellbeing of employees,
without neglecting to care for animals or the environment.
The trend is for markets, especially foreign markets, to seek
products which come with the assurance of having been
produced in compliance with the highest worldwide standards
for ethics and quality.
Relationships with Suppliers
Selection and Qualication of Suppliers: Friboi
Quality Farms Program
A JBS o primeiro frigorco brasileiro a
implementar uma ferramenta de gesto da
qualidade dos fornecedores de gado por meio
do programa Friboi Quality Farms
JBS was the rst Brazilian meatpacker to
implement a quality-control management tool for
its suppliers, the Friboi Quality Farms program
A JBS formou uma equipe de prossionais capacitados para
orientar e treinar os pecuaristas para que se habilitem a
requisitar a certicao. As fazendas pr-selecionadas so
contatadas e, quando aceitam participar do programa Friboi
Quality Farms, passam por uma pr-auditoria e iniciam-se
os trabalhos para adequao. O Global Gap/EurepGAP
uma ferramenta de gesto que apresenta informaes
sobre pontos fortes da propriedade e pontos que precisam
de mais ateno. Assim, possibilita um planejamento
eciente, remanejamento de recursos e alocao de ganhos,
fortalecendo o negcio.
Com o programa, a JBS busca a unio de foras em prol
do fornecimento de carnes produzidas de modo tico e
prossional. O Friboi Quality Farms faz com que o produto
brasileiro seja competitivo no mercado, agregando valor aos
produtores, garantindo qualidade aos clientes e a satisfao
do consumidor nal.
Nos outros pases, como Argentina, EUA e Austrlia, a
Companhia tem outros programas similares para contribuir
com o desenvolvimento da cadeia como um todo (fornecedor,
indstria e pecuria).
JBS has formed a special team of trained professionals to
train and guide cattle raisers to qualify for certication. The
pre-selected farms are contacted and, when they accept
to participate in the Friboi Quality Farms program, they
undergo an initial audit and begin the process of adaptation.
GlobalGAP/EurepGAP is a management tool that provides
information about a propertys strong points as well as those
which require more attention. Therefore, it makes planning,
re-management of resources, and allocation of prots more
efcient, strengthening the business.
Through this program, JBS seeks the unication of forces in
order to supply meats that are ethically and professionally
produced. Friboi Quality Farms makes its Brazilian product
competitive on the market, adding value to producers,
ensuring quality to clients, and satisfaction to the end
consumer.
The Company has similar programs in other countries, such as
in Argentina, the United States, and Australia. These programs
are designed to contribute to the development of a seamless
and integrated supply chain (supplier, industry, and livestock).
Negociao
Para manter um relacionamento saudvel com os 12.750
fornecedores de gado no Brasil, a JBS cultiva a transparncia
entre as duas partes como forma de promover a longo prazo
o crescimento do setor por meio do fortalecimento da cadeia
produtiva pecuarista > indstria > distribuidor.
Assim, procura oferecer ao pecuarista variadas condies
de comercializao do gado para que o fornecedor
possa planejar antecipadamente suas vendas, facilitando
as negociaes e otimizando seus resultados. Entre as
modalidades de comercializao praticadas pela JBS
destaca-se a Venda de Bovinos a Termo.
Com as Vendas a Termo, o pecuarista pode comercializar
seus bois com preo e data para abate futuros, previamente
denidos. De 2004 a 2007, a JBS adquiriu mais de
1 milho de bois nessas condies.

Na Argentina, a relao com os pecuaristas de plena
conana. A poltica de relacionamento inclui um programa
de visitas s plantas industriais e acompanhamento da
produo, bem como assessoria para questes sanitrias,
referentes nutrio dos animais e s vendas do gado. Em
2007, foram adquiridos 474.068 animais dos quase 1.300
fornecedores na Argentina.
To maintain a healthy relationship with its 12,750 cattle
suppliers in Brazil, JBS cultivates transparency between
both sides as a means to promote long-term growth in the
sector by strengthening the breeder > industry > distributor
productive chain.
For these reasons, JBS seeks to offer the cattle breeder several
cattle-selling options so that suppliers can plan their sales in
advance, facilitating negotiations and optimizing results. One
of the most common ways in which JBS acquires cattle is
through cattle futures contracts.
Through these futures contracts, the breeders can sell their
cattle at previously dened prices and slaughter dates. From
2004 to 2007, JBS acquired more than 1 million head of
cattle using this procedure.
In Argentina, our relationships with breeders are characterized
by complete trust. This relations policy includes an industrial
plant visit program and production monitoring, as well as
assistance with sanitary, animal nutrition, and cattle sales
issues. In 2007, we acquired 474,068 animals from nearly
1,300 suppliers in Argentina.
Negotiation
Transparncia e facilidades para
negociao com a prtica de diversas
formas de comercializao com os
12.750 fornecedores de gado no Brasil
Transparency and negotiation easiness with
several selling practices with its 12,750
cattle suppliers in Brazil
Relacionamento com Clientes e
Consumidores
O cultivo de um bom relacionamento da JBS com seus
pblicos comea no eciente cuidado com todas as etapas
de produo para garantir a qualidade do produto nal,
principal ferramenta da Companhia para atingir os mais
elevados nveis de satisfao e conabilidade dos clientes e
consumidores, e assegurar a preferncia e delizao pelas
suas marcas.
Adicionalmente, a JBS est envolvida em aes para
estreitar o relacionamento comercial com seus parceiros,
como reunies, visitas e participao em feiras e eventos
do setor. Essas iniciativas permitem o melhor entendimento
dos negcios dos clientes, promovendo a busca de
solues para suas necessidades, como o desenvolvimento
de novos produtos e embalagens, realizao de
promoes, entre outras.

Junto ao consumidor nal, a Companhia realiza pesquisas
para identicar necessidades e hbitos alimentares do pblico
e assim desenvolver produtos que atendam a essa demanda.
Alm disso, periodicamente so lanadas campanhas
publicitrias e promoes com foco na aproximao e
identicao entre o consumidor e as marcas JBS.
Relationships with Clients and
Consumers
JBSs cultivation of good relations with its public starts
with efcient care for all of the production phases to
ensure quality in the end product, a main tool used by the
Company to reach the highest levels of client and customer
trust and satisfaction, and to ensure their preference for and
loyally to the Companys brands.
JBS is also involved in efforts to strengthen the commercial
relationship with its partners, efforts such as meetings,
visits, and participation in fairs and events in the sector.
These initiatives lead to better understanding of our clients
businesses, promoting the search for solutions to their needs,
such as the development of new products and packaging,
special promotions, and other activities.

Together with end consumers, the Company carries out
research to determine the needs and eating habits of the
public and, in this way, to develop products that meet
those demands. In addition, we frequently launch publicity
and promotional campaigns focused on strengthening the
relationship and the identication between JBS consumers
and its brands.
4. 5eIer de AIuce
Operations Sector
R$ 5.752 milhes
|o ',.'2 u||o| | |o|og| su|os g|oss |ovo|uo |o| 200.
foi a receita bruta de vendas para
o mercado externo em 2007
E
m 2007, a economia brasileira manteve o crescimento
estvel e o amadurecimento perante o contexto
econmico mundial. O pas foi destino para um volume
recorde de investimentos, tanto estrangeiros como nacionais,
que totalizaram 17,6% do PIB.
O PIB encerrou o exerccio com um aumento de 5,4%
e totalizou R$ 2,6 trilhes, puxado principalmente pelo
crescimento no setor agropecurio, que foi de 5,3% em 2007.
O aumento da produo, da renda com alta mdia de
3,6% na massa salarial e da oferta de crdito que
cresceu 28,8% em 2007 somado tendncia de reduo
da taxa bsica de juros (Selic), que encerrou 2007 a
11,25%, contriburam para o aquecimento da economia no
mercado interno.
In 2007, the Brazilian economy maintained stable growth
and maturity relative to the global economic context. A record
volume of investments were made here, by foreigners as well
as by Brazilians, which totaled 17.6% of GDP.
GDP for the period closed 5.4% higher and totaled
R$ 2.6 trillion, led mainly by growth in the agricultural and
livestock raising sector, which was up by 5.3% for 2007.
Growth in production, in income with an average increase
of 3.6% of total wages and salaries and in provision of
credit which grew by 28.8% in 2007 added to the trend
toward reduction of the SELIC (base interest rate), which stood
at 11.25% at the end of 2007, contributed to the economic
upturn in the domestic market.

Cenrio Macroeconmico Brasileiro Macroeconomic Scenario in Brazil
Brasil: Evoluo do Salrio Mnimo (k5|
Brazil: Evolution of Minimum Wage (in R$)
260
Fonte: IBGE
Source: IBGE
2004
300
2005
350
2006
380
2007
J na balana comercial, o Brasil teve aumento de 6,6%
nas exportaes frente ao crescimento de 20,7% nas
importaes, estas ltimas impulsionadas pela valorizao
do real, que acumulou alta de 17% no ano em relao
ao dlar norte-americano. Esse ciclo manteve a inao
controlada e tambm contribuiu com o ritmo acelerado do
consumo domstico.
In terms of the trade balance, Brazil had a 6.6% increase
in exports and 20.7% growth in imports, which were driven
by the appreciation of the Real, which climbed 17% in
2007 versus the U.S. dollar. This cycle kept ination under
control and also contributed to an accelerated rhythm in
domestic consumption.
Cenrio Macroeconmico Brasileiro
Exerccio encerrado em 31 de dezembro (em %)
2006 2007
Crescimento do PIB 3,7 5,4
Inao (IGP-M) 3,8 1,76
Inao (IPCA-M) 3,1 4,47
Taxa Selic 15,0 11,25
Fontes: IBGE e FGV
Brazilian Macroeconomic Scenario
Year ending December 31 (in %)
2006 2007
GCP Growth 3.7 5.4
Ination (IGP-M) 3.8 1.76
Ination (IPCA-M) 3.1 4.47
SELIC Rate 15.0 11.25
Sources: IBGE and FGV
Em 2007, a economia argentina manteve o processo de
recuperao, apresentando crescimento de 8,7%. Nos ltimos
5 anos, o setor agropecurio acumulou crescimento de 40,3%,
numa mdia de crescimento anual de 8,8%.
O consumo aumentou nos mesmos nveis que a produo. Na
mesma tendncia, os investimentos e as exportaes cresceram,
sendo que as receitas de vendas para o exterior tiveram um
incremento de 20,4%. Do total de exportaes, os produtos
agropecurios responderam por 34,5% do volume nos 11
primeiros meses de 2007, graas ao crescimento do setor.
A agricultura, a pecuria e a silvicultura apresentaram
crescimento de 10,2% em 2007. O crescimento observado
nos ltimos 5 anos foi fortemente impulsionado pelo aumento da
demanda mundial por alimentos e o conseqente aumento dos
preos dos alimentos.
A inao medida pelo ndice de Preos ao Consumidor, rgo
ocial, encerrou o ano a 8,5%, 1,3 p.p. abaixo do ndice de
2006. Mas estimativas no-ociais indicam que a inao cou
em torno de 20% no ano.
Os indicadores sociais apresentaram melhorias pela decrescente
taxa de desemprego e aumento dos salrios, de cerca de
22,7% no ano.
In 2007, the Argentine economy continued the recovery
process, demonstrating growth of de 8.7%. In the last ve
years, the livestock raising sector has accumulated growth
of 40.3%, for an average growth rate of 8.8%.
Increases in consumption kept pace with increases in
production. Showing the same trend, investments and
exports also increased, with foreign sales revenues
showing a 20.4% increase. Of total exports, agricultural
and livestock raising products accounted for 34.5% of the
volume for the rst 11 months of 2007, thanks to overall
growth in the sector.
Agriculture, livestock raising, and forestry grew by 10.2%
in 2007. The growth seen in the last 5 years was strongly
driven by an increase in global demand of food and the
resulting increases in food prices.
Average ination as measured by Consumer Price Index,
ofcial body, closed the year at 8.5%, 1.3 p.p. lower than
the rate for 2006. However, unofcial estimates place the
increase in the rate of ination at closer to 20% in the year.
Social indicators demonstrated improvements due to the
falling unemployment rate and the increase in salaries,
which was nearly 22.7% for the year.
Cenrio Macroeconmico Argentino Macroeconomic Scenario in Argentina
Argentina
Argentina
A economia norte-americana registrou crescimento pelo sexto
ano consecutivo em 2007, apesar das restries ocasionadas
pelas diculdades enfrentadas pelo setor imobilirio e pelas
incertezas do mercado nanceiro. De acordo com relatrio
divulgado pela Presidncia dos Estados Unidos, o Produto
Interno Bruto (PIB) real cresceu 2,5%, percentual prximo ao
registrado em 2006. O resultado foi conseqncia de uma
reorientao da economia do pas, que registrou aumento nas
exportaes e nos investimentos em negcios.
A inao medida pelo ndice de Preo ao Consumidor (CPI, na
sigla em ingls) registrou aumento de 4,1%, impulsionada pelos
preos da energia, dos combustveis e dos alimentos. A energia
foi o principal agente da alta inacionria, com salto de 2,9% em
2006 para 17,2% em 2007. Os preos dos alimentos, por sua
vez, reetiram as condies de oferta e demanda de produtos
agrcolas no mercado mundial, afetadas por eventos como a seca
na Austrlia e o aumento da procura pelo etanol extrado do milho.
As exportaes reais de bens e servios cresceram 8%, o
que reexo da expanso da capacidade de produo do
setor industrial norte-americano e do crescimento dos parceiros
comerciais dos Estados Unidos. Estima-se que o PIB real
dos pases membros da Organizao para Cooperao e
Desenvolvimento Econmico (OCDE) tenha crescido 3,3% e
2,7% em 2006 e 2007, respectivamente, depois de registrarem
2,4% nos trs anos anteriores.
A turbulncia no mercado nanceiro reetiu a preocupao
dos investidores em relao diculdade enfrentada pelo setor
imobilirio. Ainda assim, a previso de continuidade do
crescimento da economia nos prximos anos, com projeo
de crescimento real do PIB de cerca de 3% em 2009 e 2010,
com manuteno da taxa de desemprego abaixo dos 5%.
The American economy recorded growth for the sixth
straight year in 2007, despite restrictions caused by
difculties in the real estate sector and uncertainties in the
nancial market. According to a report issued by the USAs
presidency, real GDP was up 2.5%, a gure close to the
2006 mark. This was the result of a reorientation of that
countrys economy, which registered growth in exports and
in investments in businesses.
Ination, as measured by the Consumer Price Index (CPI)
recorded an increase of 4.1%, driven up by energy,
fuel, and food prices. Energy was the main agent in the
inationary growth, increasing from 2.9% in 2006 to
17.2% in 2007. Food prices reected the global market
conditions of offer and demand of agricultural products,
which were affected by events such as the drought in
Australia and the increased demand of corn-based ethanol.
Real exports of goods and services grew by 8%, a
reflection of expansion in American industrial production
capacity and an increase in the countrys trade partners.
It is estimated that real GDP of the member countries
of the Organization for Economic Co-operation and
Development (OCDE) grew by 3.3% and 2.7% in 2006
and 2007, respectively, following increases of 2.4% the
previous three years.
The turbulence in the financial market reflected investor
worries regarding real estate crisis. Despite these fears,
the forecast is for continued economic growth over the
next few years, with real GDP projected to grow at close
to 3% in 2009 and 2010, and with unemployment rate
remaining below 5%.
Cenrio Macroeconmico Americano Macroeconomic Scenario in the
United States
Estados Unidos da Amrica
Unites States of America
Com uma das economias mais fortes do mundo, a Austrlia
vem apresentando um estvel quadro de crescimento nas
ltimas 2 dcadas, com baixas taxas de desemprego, polticas
econmicas exveis e integradas ao mercado global.
Em 2007, o PIB australiano alcanou 1 trilho de dlares
australianos e o desemprego cou abaixo dos 5% - h 15
anos a taxa cava em torno dos 11%.
No Relatrio Econmico da Austrlia referente ao ltimo
exerccio, a Organizao para Cooperao Econmica e
Desenvolvimento (OECD, na sigla em ingls) classicou a
economia australiana como notvel, destacando a mdia
de crescimento anual na renda bruta da populao de mais
de 4% desde 2000. A OECD projeta um crescimento de
3,3% na economia do pas em 2008, bem acima da mdia
estipulada de 2,7%.
No binio 2006-2007, o comrcio bilateral de produtos e
servios foi avaliado em AU$ 443,6 bilhes. No mesmo
perodo, as exportaes saltaram 16% e alcanaram o recorde
de AU$ 215,8 bilhes, cerca de 21% do PIB australiano.
O pas j teve como foco principal de suas exportaes
commodities agrcolas, minerais e de energia. Hoje, diversica
seus produtos no mercado internacional e se apresenta
como um destino seguro para investimentos estrangeiros, que
totalizaram AUS 331 bilhes nos ltimos 2 anos.
With one of the strongest economies in the world, Australia
has been demonstrating stable growth over the past 2
decades, with low unemployment rates, exible and
globally integrated economic policies.
In 2007, Australias GDP reached AU$ 1 trillion and
unemployment was under 5% after being around 11% for
the previous 15 years.
In the Australian Economic Reports relating to the past year,
OCED classied the Australian economy as noteworthy,
highlighting its average annual growth in per-capita gross
income of more than 4% since the year 2000. The OCED
is projecting growth of 3.3% for the Australian economy in
2008, well above the stipulated average of 2.7%.
In the two-year period of 2006-2007, bilateral trade of goods
and services was appraised at AU$ 443.6 billion. During the
same period, exports jumped 16% to reach a record of
AU$ 215.8 billion, close to 21% of the countrys GDP.
At one time Australias economy revolved around the export
of agricultural and mineral commodities and energy. It now
diversies its products on the foreign market and is seen
as a safe destination for foreign investments, which totaled
AU$ 331 billion over the past two years.
Cenrio Macroeconmico Australiano Macroeconomic Scenario in Australia
Austrlia
Australia
A Indstria Mundial de Carne Bovina The Global Beef Industry
Produo (em milhes de toneladas)
Production (in millions of tonnes)
2006 2007
53.7
54.5
1.5%
53,7
54,5
1,5%
Consumo (em milhes de toneladas)
Consumption (in millions of tonnes)
2006 2007
51.9
52.5
1.2%
51,9
52,5
1,2%
Produo e Rebanhos Bovinos
Segundo dados do USDA (United States Department of
Agriculture), o rebanho mundial de bovinos em 2007 foi de
mais de 1 bilho de cabeas, gerando uma produo de
54,5 milhes de toneladas de carne. Nesse cenrio, a JBS
teve relevante participao devido sua atuao global,
com plantas instaladas em pases que ocupam posio de
destaque nos rankings mundiais.
Os Estados Unidos mantiveram em 2007 a posio de
maior produtor mundial de carne bovina, com produo
11,9 milhes de toneladas no ano, seguidos pelo Brasil,
que produziu 9,4 milhes de toneladas no perodo. A
Argentina ocupa a 5 posio no ranking, com 3,1 milhes
de toneladas produzidas e a Austrlia tem a 8 produo, de
2,2 milhes de toneladas.
Com 187,2 milhes de cabeas, o rebanho brasileiro de
bovinos o 2 maior do mundo, e ca atrs apenas da
ndia, cuja criao no destinada para ns comerciais
por questes religiosas. Os EUA detm o 3 maior rebanho
comercial do mundo, com 96,9 milhes de cabeas, e a
Argentina, na 5 posio, possui 51,3 milhes. A Austrlia,
por sua vez, tem o 7 rebanho no ranking mundial, com
28,4 milhes de cabeas em 2007.
Production and Cattle Herd
According to USDA (United States Department of Agriculture)
data, the world cattle herd in 2007 totaled more than
1 billion heads, resulting in the production of 54.5 million
tonnes of beef. In this scenario, JBS played an important part
due to its global operations, with plants located in countries
with a highlighted position in global rankings.
The USA kept the position as the worlds largest beef producer
in 2007, producing 11.9 million tonnes in the year, owed
by Brazil with a 9.4 tonnes production in the same period.
Argentina ranks 5th, with 3.1 million tonnes produce.
Australia comes in 8th with a 2.2 million tonnes production.
With 187.2 million heads of cattle as of 2007, the Brazilian
herd is the worlds second largest, trailing only India, which
does not sell cattle for food due to religious beliefs. The USA
has the third largest cattle herd in the world, with 96.6 million
heads and Argentina ranks 5th, with 51.3 million. Australia
comes in 7th, with a herd comprised of 28.4 million heads of
cattle in 2007.
Maiores Rebanhos Bovinos do Mundo (em milhares de cabeas)
2006 2007
ndia 282,0 281,7
Brasil 180,1 187,2
China 145,3 140,2
Estados Unidos 98,4 96,9
Unio Europia 85,2 87,8
Argentina 50,8 51,3
Austrlia 28,6 28,4
Mxico 26,6 26,2
Rssia 18,7 18,3
Canad 14,4 13,7
Uruguai 12,1 11,7
Outros 62,1 57,5
Total 1.004,3 1.000,9
Fonte: USDA
Largest Beef Herds Worldwide (in thousands of head)
2006 2007
India 282.0 281.7
Brazil 180.1 187.2
China 145.3 140.2
USA 98.4 96.9
European Union 85.2 87.8
Argentina 50.8 51.3
Australia 28.6 28.4
Mexico 26.6 26.2
Russia 18.7 18.3
Canada 14.4 13.7
Uruguay 12.1 11.7
Others 62.1 57.5
Total 1,004.3 1,000.9
Source: USDA
Produo Mundial de Carne Bovina (em milhares de toneladas)
2006 2007
Estados Unidos 11.897 11.969
Brasil 8.850 9.470
Unio Europia 7.880 8.000
China 7.500 7.850
Argentina 3.100 3.175
ndia
1
2.375 2.500
Mxico 2.175 2.200
Austrlia 2.150 2.261
Rssia 1.460 1.380
Canad 1.375 1.345
Nova Zelndia 650 660
Uruguai 635 590
Outros 3.464 3.089
Total 53.511 54.489
Fontes: USDA
1. Inclui carne de bfalo
Worldwide Beef Production (in thousands of tonnes)
2006 2007
USA 11,897 11,969
Brazil 8,850 9,470
European Union 7,880 8,000
China 7,500 7,850
Argentina 3,100 3,175
India
1
2,375 2,500
Mexico 2,175 2,200
Australia 2,150 2,261
Russia 1,460 1,380
Canada 1,375 1,345
New Zealand 650 660
Uruguay 635 590
Others 3,464 3,089
Total 53,511 54,489
Source: USDA
1 Includes buffalo meat
Consumo
No perodo de 2001 a 2007, o consumo mundial de carne
bovina apresentou crescimento anual mdio de 1,1%, sendo
que apenas em 2007 o consumo total chegou a 52,5 milhes
de toneladas, 1,2% superior ao registrado em 2006.
As perspectivas so de continuidade no crescimento
do consumo de carne bovina devido ao crescimento
populacional mundial, ao desenvolvimento da economia
global e ao aumento da renda per capita, sendo as
economias emergentes um mercado potencial para esse
crescimento no consumo.
Consumption
Between 2001 and 2007, worldwide beef consumption
grew by 1.1%, and it wasnt until 2007 that total
consumption reached 52.5 million tonnes, 1.2% higher
than the 2006 gure.
It is expected that beef consumption will continue
to increase due to growth in world population, the
development of the global economy, and increases in
per-capita income, with emerging economies becoming a
potential market for much of this growth in consumption.
Consumo Mundial de Carne Bovina (em milhares de toneladas)
2006 2007
Estados Unidos 12.800 12.815
Unio Europia 8.220 8.550
China 7.413 7.756
Brasil 6.935 7.095
Argentina 2.604 2.655
Mxico 2.505 2.555
Rssia 2.285 2.422
ndia
1
1.625 1.775
Japo 1.186 1.210
Canad 1.067 1.090
Austrlia 740 757
Egito 690 660
Coria do Sul 420 515
Outros 3.019 2.685
Total 51.509 52.540
Fontes: USDA
1. Inclui carne de bfalo
Comrcio
Os Estados Unidos, mesmo sendo o maior produtor de carne
bovina no mundo, tambm o maior importador, j que a
produo no atende elevada demanda do pas.
No ranking de exportaes, o Brasil se encontra na liderana
desde o ano de 2004, principalmente pela ocorrncia
de BSE (conhecida popularmente como doena da vaca
louca) em alguns pases exportadores de carne bovina
enfermidade que no atinge o rebanho brasileiro.
Para 2008, o USDA prev um crescimento nas exportaes
mundiais de 6,4%, tambm levando em considerao o
crescimento das exportaes no Brasil e na Austrlia, pases
lderes no comrcio mundial do produto.
Trade
The United States in not only the largest producer of beef
in the world; it is also the largest beef importer, since
production does not keep pace with increasing demand.
In rankings of beef exporters, Brazil has been the leader
since 2004, thanks in large part to the occurrence of BSE
(popularly referred as mad cow disease) in some other
beef-exporting countries, a disease that has not affected the
Brazilian herd.
For 2008, the USDA foresees a 6.4% growth in global
exports, taking into account growth in exports in Brazil and
Argentina, both among the world leaders in the sale of
beef products.
Worldwide Beef Consumption (in thousands of tonnes)
2006 2007
United States 12,800 12,815
European Union 8,220 8,550
China 7,413 7,756
Brazil 6,935 7,095
Argentina 2,604 2,655
Mexico 2,505 2,555
Russia 2,285 2,422
India
1
1,625 1,775
Japan 1,186 1,210
Canada 1,067 1,090
Australia 740 757
Egypt 690 660
South Korea 420 515
Others 3,019 2,685
Total 51,509 52,540
Source: USDA
1 Includes buffalo meat
Com o maior rebanho bovino do mundo para ns
comerciais, o Brasil se tornou tambm o maior exportador
mundial de carne bovina, graas ao aumento da produo,
caracterizada pelo baixo custo, o que permite ampliao
dos mercados destinatrios das exportaes. A reduo de
barreiras sanitrias e comerciais tambm contribuiu para o
crescimento mdio de 25,5% nas exportaes brasileiras de
carne bovina desde o ano 2000.
A balana comercial brasileira do agronegcio encerrou
2007 com um supervit de US$ 49,7 bilhes, 16,4%
superior ao supervit registrado em 2006. Esse resultado
foi impulsionado principalmente pelo desempenho das
exportaes de carnes, que subiram 30,7% em relao
a 2006, alcanando a soma de US$ 11,3 bilhes.
Nesse cenrio, as exportaes de carne bovina in natura
cresceram 11,2%.
A participao do Brasil no total de exportaes mundiais
no setor foi de 31,9% no ano, mesmo com o embargo
compra de carne bovina in natura produzida no Brasil por
parte de alguns pases devido ocorrncia de febre aftosa
no estado do Mato Grosso do Sul em 2005 e no estado do
Paran em 2006.
With the largest commercial cattle herd in the world for
selling purposes, Brazil also became the largest worldwide
exporter of beef, thanks to increases in production,
characterized by low costs, which allow an increase in
potential export destinations. The reduction of sanitary and
trade restrictions also contributed to the 25.5% average
growth in Brazilian beef exports since the year 2000.
Brazilian agribusiness trade balance ended 2007 with
a superavit of US$ 49.7 billion, 16.4% higher than the
2006 superavit. This result was driven mainly by beef
export performance, which was up by 30.7% when
compared to the previous year, reaching a total of
US$ 11.3 billion. In this scenario, fresh beef exports
grew by 11.2%.
Brazils share in total global exports in the sector was
31.9% for 2007, even with the embargo on the purchase
of fresh beef produced in Brazil imposed by some
importing countries due to concern about an occurrence of
foot-and-mouth disease in the state of Mato Grosso do Sul
in 2005 and in the state of Paran in 2006.
A Indstria Brasileira de
Carne Bovina
The Beef Industry in Brazil
Exportaes Brasileiras de Carne Bovina in natura em 2007
Brazilian Fresh Beef Exports in 2007
E
u
r
o
p
e
a
n

U
.
U
.

E
u
r
o
p
i
a
R
u
s
s
i
a
R
s
s
i
a
E
g
y
p
t
E
g
i
t
o
I
r
a
n
I
r
A
r
g
e
l
i
a
A
r
g
l
i
a
V
e
n
e
z
u
e
l
a
V
e
n
e
z
u
e
l
a
S
a
u
d
i

A
r
a
b
i
a
A
r
b
i
a

S
a
u
d
i
t
a
I
s
r
a
e
l
I
s
r
a
e
l
H
o
n
g

K
o
n
g
H
o
n
g

K
o
n
g
O
t
h
e
r
s
O
u
t
r
o
s
185.2
185,2
448
448
174.2
174,2
61.3
61,3
51.4
51,4
46.7
46,7
40.4
40,4
30.5
30,5
40.7
40,7
207.2
207,2
2.6%
3.6%
2.3%
1.8%
1.6%
2,6%
3,6%
2,3%
1,8%
1,6%
19,9% 19,9%
35,8% 35,8%
U. Europia / European Union
Volume (mil toneladas)
Volume (Thousands of tons)
Fonte: SECEX / MDIC
Source: SECEX / MDIC
Rssia / Russia
Egito / Egypt
Ir / Iran
Arglia / Argelia
Venezuela / Venezuela
Arbia Saudita / Saudi Arabia
Israel / Israel
Hong Kong / Hong Kong
Outros / Others
19,2% 19,2%
9,6% 9,6%
19.9% 19.9%
35.8% 35.8%
19.2% 19.2%
9.6% 9.6%
4,8% 4 8 4 8 4,8% 4 8% 4,8%
4.8% 4.8% 44.8% 4.8% 4.8%
The Beef Industry in Argentina A Indstria Argentina de Carne Bovina
Com 51,3 milhes de cabeas de gado em 2007,
a Argentina possui o quarto maior rebanho no mundo
para ns comerciais. Atualmente, a Argentina a quarta
maior exportadora de carne bovina no mundo, com uma
participao de 7% no total das exportaes mundiais de
carne bovina, apenas atrs do Brasil, Austrlia e EUA.
De acordo com dados da Ocina Nacional de Controle
Comercial Agropecurio (ONCCA, na sigla em espanhol),
que controla o setor agropecurio na Argentina, o abate
chegou a quase 15 milhes de cabeas em 2007, contra
13 milhes em 2006.
As exportaes argentinas de carne bovina chegaram a 539
mil toneladas em 2007, 4,6% inferior ao total em 2006. J
a receita das exportaes, de US$ 1,28 milho, foi 6,8%
superior receita obtida em 2006 devido ao aumento de
preos nos cortes resfriados.
A Indstria Americana de Carne Bovina
Os Estados Unidos so o maior produtor de carne bovina
do mundo apesar de possurem o terceiro maior rebanho
comercial do mundo, com 96,9 milhes de cabeas.
tambm o maior consumidor de carne bovina, com uma
mdia de 12,8 milhes de toneladas consumidas ao ano.
O pas tem um grande consumo de carne de segunda
(dianteiro) e um consumo menor de cortes nobres. Com isso,
destaca-se nas exportaes da carne nobre enquanto o
maior importador de carne de segunda do mundo.
De acordo com dados da Informa Economics, que presta
servios de pesquisa e anlise no setor agrcola em nvel
mundial, foram abatidas 34,3 milhes de cabeas de gado
nos Estados Unidos em 2007. A produo de carne bovina
respondeu por 22% do total mundial no ltimo exerccio e a
mesma mdia esperada para o ano de 2008.
With 51.3 million head of cattle in 2007, Argentina had
the fourth-largest commercial herd in the world. Currently,
Argentina is the fourth-largest beef exporter in the world,
which a global beef exports share of 7.0%, trailing only
Brazil, Australia and the EUA.
According to the ONCCA (Ocina Nacional de Control
Comercial Agropecuario - National Ofce of Commercial
Agriculture and Livestock Control), which supervises the
livestock sector in Argentina, Almost 15 million head were
slaughtered in 2007, up from 13 million in 2006.
Argentine beef exports totaled 539 thousand ton in 2007,
4.6% lower than in 2006. However, revenue from exports,
at US$ 1.28 million, was 6.8% higher than the 2006
revenue due to increases in the prices of chilled cuts.
The Beef Industry in the United States
The United States is the largest producer of beef in the
world, despite possessing the third-largest commercial herd,
with 96.9 million heads. The U.S. is also the worlds largest
consumer of beef, consuming a yearly average of 12.8
million tonnes. Americans consume more Forequarter cuts
and fewer noble cuts. Therefore, the U.S. stands out in noble
cuts exports while being the largest importer of forequarter
cuts worldwide.
According to Informa Economics data, which provides
research and analysis of the global agriculture sector, some
34.3 million head of cattle were slaughtered in the United
States in 2007. American beef production accounted for
22% of the global total in 2007, and the same share is
expected for 2008.
EUA: Maior Produtor de Carne Bovina em 2007
The U.S.: Largest Beef Producer in 2007
10% 10%
22% 22%
EUA / USA
Fontes: USDA, PSD
Sources: USDA, PSD
Brasil / Brazil
Unio Europia / European Union
China / China
Outros / Others
ndia / India
Mxico / Mexico
Canad / Canada
17% 17%
15% 15%
14% 14%
6% 6%
5% 5%
% 4%%% 4%% 4%
4%% 4% 4%
2% 2% 2% 22 2%
A Austrlia possui um rebanho de 28,4 milhes de cabeas
de gado e atualmente o segundo maior exportador de
carne bovina do mundo.
Segundo o USDA, aproximadamente 65% da produo
australiana de carne bovina em 2007 foi destinada
exportao, constituindo o principal fornecedor para o
mercado asitico.
Australia has a herd comprised of 28.4 million head and is
currently the second-largest exporter of beef in the world.
According to a USDA, approximately 65% of Australian
beef production in 2007 went to exports, in particular to the
Asian market, of which it is the largest supplier.
A Indstria Australiana de
Carne Bovina
The Beef Industry in Australia
A produo e comercializao de carne bovina esto
sujeitas extensa regulamentao com relao ao
processamento, embalagem, armazenamento, distribuio,
propaganda e rotulagem dos produtos, incluindo padres de
segurana de alimentos.
A JBS procura manter-se alinhada s regulamentaes dos
pases onde atua para garantir que as operaes cumpram
com todas as normas de segurana de alimentos aplicveis.
Brasil
O setor de carne bovina no Brasil regulado pelo Ministrio
da Agricultura, Pecuria e Abastecimento (MAPA), que atua
com foco no desenvolvimento sustentvel e na competitividade
do setor agropecurio no pas por meio de medidas que
estimulem a produo para o mercado domstico e externo,
garantindo a qualidade e a segurana alimentar.
The production and commercialization of beef are subject to
extensive regulation with regard to processing, packaging,
storage, distribution, advertising, and product labeling,
including food safety standards.
JBS strives to remain aligned with the regulations of the
countries where it has operations, in order to ensure the
operations will comply with all applicable food safety norms.
Brazil
The beef sector in Brazil is regulated by the Brazilian Ministry of
Agriculture, Cattle Raising and Supply (MAPA), which focuses
on sustainable development and on the competitiveness of
the agribusiness sector in Brazil by means of measures which
stimulate the production for the domestic and foreign market,
ensuring food quality and safety.
Regulamentao do Setor
Sectors Regulation
BSE - Encefalopatia Espongiforme Bovina
Popularmente conhecida como doena da vaca louca, a BSE uma
molstia crnica degenerativa que afeta o sistema nervoso dos bovinos
provocando o descontrole motor. A transmisso da doena para o
animal ocorre atravs da ingesto de rao base de carne, ossos,
sangue e vsceras.
A principal caracterstica dos pases em que ocorre a BSE a criao
de gado pelo mtodo intensivo (utilizao de connamento e rao
de origem animal). Pases em que a criao de gado extensiva, com
alimentao baseada em pastagem, como o Brasil e Argentina, so
considerados livres da doena. Nesses dois pases proibida a utilizao
de rao de origem animal na alimentao do rebanho bovino. No Brasil
e na Argentina nunca foram registrados casos da doena.
Febre Aftosa
Doena contagiosa que afeta animais de cascos fendidos, como
bovinos e sunos. H um reduzido nmero de casos de transmisso
de febre aftosa a humanos, sendo que a contaminao por ingesto
de carnes e produtos da mesma origem no foi comprovada. A
transmisso entre seres humanos tambm no foi relatada.
A importncia da febre aftosa se resume aos impactos econmicos e
sociais, tendo em vista os prejuzos sobre a produo, produtividade
e rentabilidade da pecuria. A doena causa a reduo da
disponibilidade do produto, bem como das exportaes devido a
embargos de pases importadores em decorrncia da doena, mas
no h indcios de que ameacem a sade humana.
BSE Bovine Spongiform Encephalopathy
Popularly referred to as mad cow disease, BSE is a chronic
degenerative condition that affects the nervous system of bovine
animals causing loss of motor control. The transmission of the
disease to the animal occurs through ingestion of feed made from
animal meat, bones, blood, and entrails.
The main characteristic of countries in which BSE occurs is the
raising of cattle using the intensive method (use of connement and
animal-based feeds). Countries in which cattle raising utilizes the
free-range method, and which use pasture-based feeding, such as
Brazil and Argentina, are considered free of the disease. The use
of animal-based feeds is prohibited in these two countries. Cases
of BSE have never been documented in Brazil or in Argentina.
Foot-and-Mouth Disease
A contagious ailment affecting cloven-hoofed animals, such as cattle
and pigs. A small number of cases of this disease affect humans,
who are contaminated by ingesting meat and meat products whose
origin has not been veried. Human-to-human transmission has not
been documented.
The main effects of foot-and-mouth disease are economic and social,
in light of the losses it can cause in terms of livestock production,
productivity, and protability. The disease can cause a reduction
in the availability of products, as well as declines in exports, due
to embargos imposed by importing countries. However, there is no
indication that it poses a serious threat to human health.
As polticas desenvolvidas pelo Ministrio consideram
aspectos como: sanidade animal, organizao e
modernizao da produo com uso consciente dos recursos
naturais, incentivo s exportaes, entre outros. Para isso,
valoriza a pesquisa, avanos tecnolgicos e as caractersticas
do mercado a m de promover o negcio de maneira
adequada no cenrio nacional, e ao mesmo tempo integr-lo
no mercado internacional.
Entre os programas promovidos pelo Ministrio para garantir
a Qualidade e a Segurana dos produtos agropecurios
brasileiros, esto:
Programa Nacional de Erradicao da Febre Aftosa
(PNEFA): manuteno da rea livre de febre aftosa por
meio da vacinao do rebanho.
Sistema Brasileiro de Inspeo: garante a qualidade e a
segurana de alimentos de origem animal e vegetal.
Servio de Rastreabilidade da Cadeia Produtiva
de Bovinos e Bubalinos: registro e identicao do
rebanho, possibilitando o rastreamento do animal desde
o nascimento at o abate.
Vigilncia Agropecuria Internacional (VIGIAGRO):
controle do trnsito internacional de animais para
prevenir agentes que possam comprometer a sanidade
dos produtos e qualidade dos insumos agropecurios
importados e exportados.
Argentina
Na Argentina, o setor de carne bovina responsabilidade
do Servio Nacional de Sanidade e Qualidade
Agroalimentar (Senasa, na sigla em espanhol). Ligado ao
Estado, o rgo executa as polticas para o setor e scaliza
o cumprimento das normas vigentes em relao sanidade
animal e qualidade da produo prevista no Cdigo
Alimentar Argentino, inclusive no controle de importaes e
exportaes de alimentos de origem bovina.

As aes do Senasa esto relacionadas com a preveno,
diagnstico e controle de enfermidades animais; emisso
de certicaes de sade e segurana para importaes e
exportaes; identicao de zonas epidemiolgicas; registro
e scalizao de plantas de connamento e de produo,
bem como do transporte e da comercializao de produtos.
The policies developed by the Ministry take into account
aspects such as: Animal health, production organization and
modernization with the conscious use of natural resources,
incentive to exports, among others. In order to do so, it
acknowledges research, technological advances, and the
market characteristics so as to promote the business in the
most appropriate manner in the domestic scenario, and at the
same time integrate it to the foreign market.
Among the programs promoted by the Ministry to ensure
Quality and Safety of the Brazilian agribusiness products
are:
National Program for Foot-and-Mouth Disease Eradication
(PNEFA): Maintenance of the area free from foot-and-
mouth disease by means of vaccination of the cattle.
Brazilian Inspection System: Ensures quality and safety of
foods of animal and vegetable origin.
Brazilian Service of Traceability of the Production Chain
of Bovines and Buffalos: Registration and identication of
the cattle, allowing for the animal to be traced from birth
to slaughtering.
International Agribusiness Vigilance (VIGIAGRO):
Control of the international transit of animals to
prevent agents from compromising the hygiene of the
products and the quality of the imported and exported
agribusiness inputs.
Argentina
In Argentina, the beef sector is a responsibility of the
National Service of Agribusiness and Food Sanitation and
Quality (Senasa, local acronym). Linked to the State, the
agency executes the policies for the sector and inspects
the compliance with the rules in force regarding animal
sanitation and production quality provided for by the
Argentine Food Code, including the control of imports and
exports of foods of bovine origin.

The actions of the Senasa relate with prevention, diagnosis,
and control of animal diseases; issuance of health and
safety certicates for imports and exports; identication
of epidemiological zones; registration and inspection
of connement and production plants, as well as the
transportation and commercialization of products.
As certicaes e registros denidos pelo Senasa seguem
normas previstas em acordos estabelecidos com os
parceiros comerciais, atendendo a recomendaes de
rgos internacionais. Entre os programas promovidos pelo
Senasa para garantir a Qualidade e a Segurana dos
produtos agropecurios argentinos, esto:
Programa de Febre Aftosa: vacinao coletiva contra a
febre aftosa.
Programa Nacional de Preveno e Vigilncia das
Encefalopatias Espongiformes: medidas de preveno
de contaminao dos rebanhos pela doena conhecida
como vaca louca.
EUA
O Departamento de Agricultura dos Estados Unidos (USDA,
na sigla em ingls) o rgo responsvel pelo setor de carne
bovina no pas que atua na implementao de polticas pblicas
e no desenvolvimento cientco e gesto da produo.
O foco do USDA est na expanso dos mercados para
os produtos agropecurios, integrando-se s economias
internacionais. Internamente, trabalha pelo desenvolvimento
e modernizao do setor na economia americana para a
promoo da sade alimentar da populao. O incentivo
pesquisa a palavra-chave do USDA na busca da reduo de
fatores que interram na sanidade animal e conseqentemente
na qualidade e segurana dos alimentos. Para isso, atua em
parceria com o setor privado e outros rgos estatais.
O controle das condies sanitrias nas plantas produtivas
realizado rigorosamente e prev multas para no-
conformidades. Os principais desaos adotados pelo USDA
para garantir a conabilidade nos produtos so:
Obteno de recursos federais para inspeo em 100%
dos estabelecimentos produtores.
Controle de ocorrncias que interram na sanidade do
rebanho bovino e suno.
Controle de qualidade nas plantas produtoras de carne
processada.
The certicates and registrations dened by the Senasa
follow rules provided for by agreements with the trade
partners, complying with the recommendations of
international agencies. Among the programs promoted by
the Senasa to ensure Quality and Safety of the Argentine
agribusiness products are:
Foot-and-Mouth Program: Collective vaccination against
the foot-and-mouth disease.
National Program for the Prevention and Vigilance of
Spongiform Encephalopathy: Measures to prevent the
contamination of the cattle by the so-called mad cow
disease.
USA
The United States Department of Agriculture (USDA) is the
agency in charge of that countrys beef sector, and acts in
the implementation of public policies and in the scientic
development and management of the production.
The USDA focuses on the expansion of the markets for the
agribusiness products, integrating to the international economies.
Internally, it works for the development and modernization of
the sector in the United States economy, so as to promote the
populations food safety. Incentive to research is the key word
of the USDA in striving for reducing factors which interfere with
animal sanitation, and, consequently, with the quality and safety
of foods. In order to do so, it works in partnerships with the
private sector and other government agencies.
Control of sanitation conditions in the production plants is
strict and foresees nes in cases of non-compliance. The
primary challenges adopted by the USDA to ensure the
products reliability are:
Obtaining federal resources to inspect 100% of the
producing plants.
Controlling the occurrences which interfere with the
sanitation of the bovine and swine cattle.
Controlling the quality in the plants.
Desenvolvimento em conjunto com o setor privado de
sistemas de identicao dos principais fatores que
interferem na sade dos animais para preveni-los.
Investimentos em infra-estrutura para preservar a
integridade dos animais.
Vericao dos sistemas aplicveis de Anlise dos Perigos e
Pontos Crticos de Controle (HACCP) nas plantas produtivas.
Reforo dos procedimentos de avaliao dos programas
de inspeo pblicos nacionais e estrangeiros.
Austrlia
Na Austrlia, o Ministrio da Agricultura, Pesca e Silvicultura
(DAFF, na sigla em ingls), por meio do Departamento
de Agricultura e Alimentos, atua no desenvolvimento dos
negcios e da indstria no setor de carne bovina, buscando
uma explorao sustentvel dos insumos agropecurios.
O rgo desenvolve e implementa polticas e programas
que garantem a segurana e a integridade dos produtos
agropecurios, com nfase na gesto dos riscos nas plantas
de criao de gado. Tambm orienta os produtores a adotar
prticas e processos de forma a atender as exigncias do
mercado, colocando os produtos em um patamar competitivo
no cenrio internacional.
O pas tem denido um padro de segurana alimentar com
vistas a proteger a sade dos consumidores e a integridade
das relaes comerciais. As exportaes esto sujeitas a
inspees e certicaes de acordo com normas internacionais
aceitas por todos os parceiros comerciais da Austrlia.
Para monitorar os processos de importao e exportao, o
Servio Australiano de Quarentena e Inspeo (AQIS, na sigla
em ingls), tambm integrante do DAFF, gerencia as fronteiras
do pas de forma a controlar os riscos da entrada de doenas
que possam afetar a integridade dos animais.
O AQIS tambm responsvel por inspecionar e certicar
produtos para importao e exportao, de forma a garantir a
qualidade e segurana dos produtos, consolidando a relao
da Austrlia com os mercados internacionais.
Developing, together with the private sector, systems to
identify the key factors which interfere with animals health
in order to prevent them.
Investing in infrastructure to preserve animals integrity.
Verifying the applicable systems of Hazard Analysis and
Critical Control Points (HACCP) in the production plants.
Reinforcing the procedures of evaluation of the national and
foreign public inspection programs.
Australia
In Australia, the Department of Agriculture, Fisheries and
Forestry (DAFF), by means of the Department of Agriculture
and Food, acts in the development of businesses and of the
beef manufacturing sector, seeking the sustainable exploitation
of the agribusiness inputs.
The agency develops and implements policies and
programs which ensure safety and integrity of agribusiness
products, focusing on the management of the risks at the
cattle raising plants. It also guides producers to adopt
practices and processes so as to meet the markets
requirements, placing the products in a competitive level in
the international scenario.
The country has dened a food safety standard with a
view to protecting consumers health and the integrity of the
commercial relations. Exports are subject to inspections and
certications according to international rules accepted by all
of Australias trade partners.
In order to monitor the import and export processes, the
Australian Quarantine and Inspection Service (AQIS), also
part of the DAFF, manages the countrys frontiers so as to
control the risks of entry of diseases which might affect the
animals integrity.
The AQIS is also in charge of inspecting and certicating
the products for imports and exports, so as to ensure the
products quality and safety, consolidating the Australias
relationship with the foreign markets.
5. A 185 ceme |nvesImenIe
JBS as an Investment
256,4% Aumento de
C|ov|| o| 2'c^ | |o| |ovo|uo | 200.
na Receita Lquida em 2007
Estratgias e Vantagens Competitivas Competitive Strategies and Advantages
Lucrar Liderar
To profit To lead
Estratgia JBS
JBSs Strategy
Expandir
Crescer
To expand
To grow
Crescer, Liderar e Expandir
Buscar oportunidades
de investimentos e
aquisies
Mercado fragmentado, o que permite aquisies
A Companhia ocupa posio de liderana nos mercados em
que atua, com grande perspectiva de consolidar a indstria
A JBS tem estrutura de capital competitiva e investe na ampliao
da capacidade produtiva
Monitoramento constante do mercado
Larga experincia em aquisio e integrao de empresas
A Companhia tem foco na internacionalizao
das atividades
Investimentos em crescimento e consolidao da
liderana nos mercados em que j atua
Equilbrio do mix destinado ao mercado domstico e exportaes,
protegendo-se de condies adversas do mercado
Capacidade e experincia para ingressar em mercados
internacionais
Continuar a crescer nos
mercados internacional
e domstico
Fragmented market, which allows acquisitions
The Company occupies the lead position in the markets in
which it operates with great prospects for consolidating the sector
JBS has a competitive capital structure and invests in increasing its
production capacity
Constant market monitoring
Wide experience in the acquisition and integration of companies
The Company has a focus on internationalizing
its operations
To Grow, To Lead, and To Expand
To seek investment and
acquisition opportunities
Investments in growth and consolidation of leadership on
the markets in which it already operates
Balance in the domestic and foreign market mix, protecting the
Company from adverse market conditions
The capability and experience to enter international markets
To continue to grow
in the foreign and domestic
markets
Lucrar
Continuar a reduzir
custos e aumentar
eficincias operacionais
Manter uma estrutura de custos que seja referncia
em eficincia
Melhorar processos produtivos e logsticos
Investir em Tecnologia da Informao e qualificao profissional
Aproveitar os ganhos de escala e as sinergias capturadas
nas aquisis
Otimizar o mix para ampliar a participao dos produtos
mais rentveis e maximizar a rentabilidade por abate
Investimentos em marketing, desenvolvimento de novos produtos
in natura e industrializados, alm de promover a manuteno da
diversificao da linha de produtos, o que aumenta
a rentabilidade
Expandir a participao
dos produtos mais
rentveis na receita
Maintain a cost structure that is a model of efficiency
Improve production and logistics procedures
Invest in IT and professional training
Take advantage of scale gains and synergies from acquisitions
To Profit
To continue reducing
costs and increasing
operational efficiencies
Optimize product mix to increase the share of the most
profitable products and to maximize the profit per slaughter
Invest in marketing, develop new fresh and processed beef products,
and maintain the diversity of the product line, which increases
profitability
To expand the revenue
share of the most
profitable products
Liderana de mercado e
reconhecimento da marca
Maior produtora e exportadora de
carne bovina do mundo;
Lder em vendas de carne bovina no
mercado brasileiro e australiano;
Marcas reconhecidas pela
qualidade;
3 maior produtora e processadora
de carne suna nos Estados Unidos;
Maior multinacional brasileira de
alimentos;
Primeira no mundo em capacidade
de abate;
Presena em 110 pases;
23 plantas industriais em 9 estados
do Brasil;
5 unidades de produo e 1
indstria de embalagens na
Argentina;
8 plantas industriais nos EUA;
4 unidades de abate e 4 de
connamento na Austrlia.
Market Leadership and
Brand recognition
Largest beef producer and exporter
in the world;
Leading beef seller in Brazil and in
Australia;
Brands recognized for quality;
Third-largest pork producer and
processor in the U.S.;
Largest Brazilian food multinational;
First worldwide in slaughtering
capacity;
Presence in over 110 countries;
23 industrial plants in 9 Brazilian
states;
5 production plants and one
packaging factory in Argentina;
8 industrial plants in the U.S.;
4 slaughtering plants and 4 feed
lots in Australia.
Baixos Custos de Produo
Escala de produo;
Ecincia logstica;
Plantas ecientes e atualizadas
constantemente.
Low production costs
Scaling of production
Logistical efciency
Efcient, continually
updated plants
Instalaes modernas e
estrategicamente localizadas
Reduo de riscos associados a
restries de exportao de carne
in natura no caso de problemas
tossanitrios localizados;
Tecnologia de ponta em
processamento de carne bovina
industrializada.
Modern and strategically
located facilities
Reduction of risks associated
with fresh beef export restrictions
in cases of localized sanitary
problems;
Use of advanced technology in
beef processing.
Vantagens Competitivas
Competitive Advantages
Administrao experiente e
especializada no setor
Experienced, sector-focused
management
Ampla linha de produtos
Variedade de produtos de carne
bovina in natura e industrializada;
Otimizao da utilizao da
carcaa do boi, melhorando a
rentabilidade da Companhia.
Broad line of products
A variety of fresh and processed
beef products;
Optimization of cattle carcass
utilization, increasing the
Companys protability.
Distribuio global com base
diversicada de clientes
Maior potencial de crescimento
e diminuio do risco por
concentrao de vendas.
Global distribution with a
diversied client base
Greater growth potential and lower
risk level due to sales concentration.
Histrico de sucesso em
aquisies
Sucesso na integrao
de empresas adquiridas,
resultando em ganhos de
escala e aproveitamento de
sinergias operacionais.
History of successful
acquisitions
Success in integrating
acquired companies,
resulting in scale gains and
capitalizing on operational
synergies.
Receita Lquida
A Receita Lquida consolidada em 2007 foi de
R$ 14.141,6 milhes, um crescimento de 256,4%
em relao aos R$ 3.967,6 milhes em 2006, sendo
R$ 4.891,9 milhes referentes JBS MERCOSUL e
R$ 9.249,6 referentes JBS EUA.
EBITDA
O EBITDA totalizou R$ 591,1 milhes, 4,6% superior em
comparao ao EBITDA de 2006, de R$ 564,9 milhes.
No mesmo perodo, a margem EBITDA foi de 4,2%,
composta pela margem de 14,2% da JBS MERCOSUL e de
-1,1% de margem na JBS EUA.
Net Revenue
Consolidated net revenue in 2007 came to
R$ 14,141.6 million, up 256.4% relative to the 2006 total
of R$ 3,967.6 million, with R$ 4,891.9 million pertaining to
JBS MERCOSUR and R$ 9,249.6 corresponding to JBS USA.
EBITDA
EBITDA totaled R$ 591.1 million, 4.6% higher when
compared to 2006 EBITDA (R$ 564.9 million). During the
same period, EBITDA margin was 4.2%, made up of 14.2%
JBS MERCOSURs margin and JBS USAs margin of -1.1%.
Desempenho Operacional e Financeiro Financial and Operating Performance
Receita Lquida (R$ bilhes)
Net Revenue (in R$ billions)
2005 2006 2007
3.6
4.0
14.1
256.4%
3,6
4,0
14,1
256,4%
EBITDA (R$ milhes) e Mcrgem EBITDA (%)
EBITDA (in R$ millions) and EBITDA Margin (in %)
2005 2006 2007
345.1
564.9
591.1
345,1
564,9
591,1
9.6%
14.2%
9,6%
14,2%
4,2%
4.2%
EBITDA / EBITDA
Margem EBITDA / EBITDA Margin
Prejuzo Lquido
No ano de 2007 foi apurado um prejuzo lquido de
R$ 165,0 milhes, contra um lucro lquido de R$ 180,3
milhes em 2006.
Considerando os fatores mencionados nas notas
explicativas 24 e 25 das Demonstraes Financeiras e
excluindo os montantes referentes s variaes cambiais de
investimentos em controladas no exterior, o prejuzo lquido
da JBS em 2007 seria de R$ 5,0 milhes.
Este prejuzo deve-se em parte presso nas margens que vinha
ocorrendo na indstria de carne bovina nos Estados Unidos.
Net Loss
Net losses for 2007 totaled R$ 165.0 million, as opposed
to net prot of R$ 180.3 million for the previous year.
Considering the factors explained in explanatory notes
24 and 25 of the Financial Statements and excluding
exchange rate variation in investments in our foreign
subsidiaries, the net loss for 2007 would have be R$ 5.0
million.
This loss was partly due to the pressure on margins that
occurred in the U.S. beef industry.
Resultado Lquido (R$ milhes)
Net Result (in R$ millions)
2006 2007 2007*
180.3
-165.0
*-5.0
180,3
-165,0
*-5,0
*Prejuzo lquido desconsiderando resultado de variao cambial
sobre investimentos feitos em moeda estrangeira.
*Net loss excluding the result of currency variation on investments
made in foreign currency.
Receita Operacional Lquida
A Receita Operacional Lquida de vendas aumentou 23,3%
em comparao a 2006. Destaca-se o forte desempenho
apresentado no mercado externo no ltimo trimestre, que
gerou receitas 63% superiores ao 4T06 em funo da
combinao de maiores volumes exportados e maiores
preos.
O crescimento obtido deve-se : (i) maior demanda dos
mercados domsticos e externos; (ii) integrao das novas
companhias adquiridas na Argentina; (iii) exibilidade da
companhia em distribuir seus produtos entre o mercado
interno e externo, e (iiii) possibilidade de otimizao dos
resultados atravs do direcionamento racional da produo
entre produtos in natura e/ou industrializados.
EBITDA
No ano de 2007, o EBITDA foi de R$ 692,5 milhes, com
crescimento de 22,6% em relao ao ano de 2006. A
margem EBITDA manteve-se constante em 14,2%.
Net Operating Revenue
Net selling operating revenue grew by 23.3% when
compared to 2006. The strong performance in the foreign
market during the nal quarter, which generated revenues
that were 63% higher quarter-on-quarter due to the
combination of greater export volumes and higher prices,
stood out in this category.
The increase was due to (i) the higher demand in the
domestic and foreign markets; (ii) the integration of the
new companies acquired in Argentina; (iii) the companys
exibility in distributing its products to the domestic and
foreign markets, and (iv) the possibility of optimizing its
results through the rational distribution of its production
between fresh beef and/or industrialized products.
EBITDA
For 2007, EBITDA totaled R$ 692.5 million, showing
growth of 22.6% when compared to 2006 EBITDA margin
remained at 14.2%.
Anlise Horizontal dos Principais
Indicadores Operacionais JBS
MERCOSUL
Horizontal Analysis of the Main
Operating Indicators JBS
MERCOSUR
An|se des kesu|Icdes - 185 MEkCO5U|
Results Analysis JBS MERCOSUR
JBS MERCOSUL
EBITDA (R$ milhes) e Margem EBITDA (%)
EBITDA (in R$ millions) and EBITDA Margin (in %)
2005 2006 2007
345.1
564.9
692.5
345,1
564,9
692,5
9.6%
14.2% 14.2%
9,6%
14,2% 14,2%
EBITDA / EBITDA
A Receita Lquida da JBS USA nos 173 dias entre 11
de julho de 2007 e 30 de dezembro de 2007 atingiu
R$ 9.249,6 milhes. A Margem Bruta para o perodo
foi de 3,8% e a Margem Lquida foi negativa em 1,7%.
O EBITDA foi R$ 101,4 milhes negativos com Margem
EBITDA negativa de 1,1%. Devido falta de dados
anteriores para comparabilidade desse perodo, o
desempenho operacional e por diviso foram comentados
como se encontra a seguir.
Receita Lquida
A Receita Lquida para as 14 semanas ndas em
30/12/07 apresentou um crescimento de
US$ 283,2 milhes, ou 10,9%, quando comparada s
13 semanas ndas em 23/09/07, reetindo uma semana
adicional no quarto trimestre de 2007 e um aumento de
7,7% no preo de vendas em geral.
Net Revenues for JBS USA during the 173 days between
June 11, 2007, and December 30, 2007, totaled
R$ 9,249.6 million. Gross margin for the same period was
3.8% and the Net Margin came to -1.7%. EBITDA was
negative R$ -101.4 million with an EBITDA margin of -1.1%.
Due to a lack of previous comparable data for this period,
operating and divisional performance were broken down
and commented as follows.
Net Revenue
Net revenue for the 14-week period ending December 30,
2007, was up by US$ 283.2 million, or 10.9%, when
compared to the 13-week period ending September 23,
2007, reecting the additional week in the fourth quarter
and a 7.7% increase in overall selling prices.
An|se des kesu|Icdes - 185 U5A, |nc.
Results Analysis JBS USA, Inc.
Receita Lquida
A Receita Lquida da diviso de carne bovina nos EUA foi
de US$ 1.751,4 milhes para as 14 semanas ndas em
30/12/07, comparada US$ 1.576,5 milhes para
as 13 semanas ndas em 23/09/07. O crescimento
de US$ 174,9 milhes ou 11,1% reete uma semana de
produo adicional com reduo nominal no preo de
venda sobre um aumento de 11,6% nos volumes.
Net Revenue
Net revenue for the U.S. Beef Division came to
US$ 1,751.4 million for the 14-week period ending
December 30, 2007, compared to the US$ 1,576.5
million for the 13-week period ending September 23, 2007.
The increase of US$ 174.9 million or 11.1% reects one
additional production week with a reduction in the nominal
sales price over an 11.6% increase in volumes.
CemenIres de Desempenhe per Dvse
Comments on Performance by Division
Carne Bovina Estados Unidos Beef United States
EBITDA
O EBITDA foi de US$ 101,6 milhes negativos para as 14
semanas ndas em 30/12/07, comparado a US$ 10,3
milhes negativos nas 13 semanas ndas em 23/09/07. A
reduo no EBITDA foi de US$ 91,3 milhes, reetindo um
aumento de 11,1% nas vendas lquidas devido reduo
dos preos de vendas nominais e pelo aumento de 11,6%
nos volumes, compensado pelo aumento de 5,8% nos custos
unitrios de matria-prima.
EBITDA
EBITDA totaled negative US$ -101.6 million for the 14-week
period ending December 30, 2007, compared to the negative
US$ 10.3 million for the 13-week period ending September
23, 2007. EBITDA declined US$ 91.3 million, reecting an
11.1% increase in net sales due to a decrease in the prices of
nominal sales and to the 11.6% increase in volumes, offset by
the 5.8% increase in the unit costs of raw material.
Receita Lquida
A Receita Lquida da diviso de carne suna nos EUA foi
de US$ 598,2 milhes para as 14 semanas ndas em
30/12/07, comparada com US$ 570,3 milhes para as
13 semanas ndas em 23/09/07. O aumento de US$ 27,9
milhes ou 4,9% reete o crescimento de 24,2% no volume de
produo parcialmente compensado pela reduo de 15,6%
nos preos de venda e uma semana adicional no quarto
trimestre. A reduo nos preos de venda foi atribuda forte
sazonalidade na indstria de produo de sunos.
Net Revenue
Net revenue for the U.S. Pork Division came to
US$ 598.2 million for the 14-week period ending
December 30, 2007, compared to the US$ 570.3 million
for the 13-week period ending September 23, 2007. The
increase of US$ 27.9 million or 4.9% reects a 24.2%
growth in production volume, partially offset by the 15.6%
reduction in the sales price and having an additional week
during the fourth quarter. The reduction in the sales price was
attributed to strong seasonality in the pork production industry.
Carne Suna Estados Unidos Pork United States
Receita Lquida (US$ milhes)
Net Revenue (in US$ millions)
1,577
1,751
1.577
1.751
3T07
(1)
4T07
(2)
3Q07
(1)
4Q07
(2)
(1) 13 semanas findas em 23/09/2007 / 13 weeks endive 09/23/2007
(2) 14 semanas findas em 30/12/2007 / 14 weeks ending 12/30/2007
EBITDA (US$ milhes) e Mcrgem EBITDA (%)
EBITDA (in US$ millions) and EBITDA Margin (in %)
-10.3 -101.6
-10,3 -101,6
EBITDA / EBITDA
3T07
(1)
4T07
(2)
3Q07
(1)
4Q07
(2)
(1) 13 semanas findas em 23/09/2007 / 13 weeks endive 09/23/2007
-0.7%
-0,7%
-5.8%
-5,8%
EBITDA
O EBITDA foi de US$ 40,5 milhes para as 14 semanas
ndas em 30/12/07, comparado a US$ 15,4 milhes
para as 13 semanas ndas em 23/09/12. Esse aumento
de US$ 25,1 milhes ou 162,3% deve-se ao crescimento de
24,2% no volume de vendas parcialmente compensado pela
reduo no preo de vendas, combinado com a reduo de
23,4% no preo de sunos devido primeiramente a ganhos
derivativos e condies do mercado em geral.
EBITDA
EBITDA totaled US$ 40.5 million for the 14-week period
ending December 30, 2007, compared to the
September 23, 2007. This increase of US$ 25.1 million
or 162.3% was due to 24.2% growth in sales volume,
partially offset by the reduction in sales price, combined
with the 23.4% reduction in swine prices due primarily to
derivative gains and general market conditions.
Receita Lquida (US$ milhes)
Net Revenue (in US$ millions)
570
598
3T07
(1)
4T07
(2)
3Q07
(1)
4Q07
(2)
EBITDA (US$ milhes) e Mcrgem EBITDA (%)
EBITDA (in US$ millions) and EBITDA Margin (in %)
3T07
(1)
4T07
(2)
3Q07
(1)
4Q07
(2)
15,5
40,5
15.5
40.5
EBITDA / EBITDA
6.8%
6,8%
2.7%
2,7%
Com a aquisio da Swift pela JBS em julho de 2007,
a Diviso de Carne Suna nos EUA incrementou sua
performance, apresentando a melhor Margem EBITDA
dos ltimos 5 anos: 6,8%
With JBSs acquisition of Swift in July 2007, the U.S. Pork
Meet Division improved its performance, presenting its
best EBITDA margin in the last 5 years: 6.8%
Receita Lquida
A Receita Lquida da diviso Austrlia totalizou
US$ 594,9 milhes para as 14 semanas ndas em
30/12/07, comparada aos US$ 515,5 milhes nas 13
semanas ndas em 23/09/07. O crescimento de
US$ 79,4 milhes ou 15,4% reete o aumento de 20%
nos preos de vendas sobre a diminuio de 3,7% nos
volumes de vendas, bem como uma semana adicional no
quarto trimestre. Os preos de venda, 80% dos quais so
denominados em US$, apresentaram crescimento para
compensar a valorizao do dlar australiano de 5% em
relao ao dlar norte-americano.
EBITDA
O EBITDA foi de US$ 20,0 milhes para as 14 semanas
ndas em 30/12/07, comparado a US$ 1,3 milho
negativo nas 13 semanas ndas em 23/09/07. O aumento
de US$ 21,3 milhes ou 1.661,3% reete a valorizao de
5% do dlar australiano em relao ao dlar norte-americano
no perodo.
Mercado de Capitais
Em 7 de maro de 2007, a JBS S.A. celebrou o Contrato
de Participao no Novo Mercado da Bovespa e, no dia 2
de abril, realizou a primeira oferta pblica de aes, com
200.000.000 aes representativas de 23,5% do capital
social da Companhia. As aes da JBS so negociadas sob o
cdigo JBSS3.
Na data da Oferta, o preo por ao era de R$ 8,00,
gerando uma capitalizao de R$ 1.600.000.000,00
Companhia.
A JBS direcionou os recursos obtidos com a Oferta
estratgia de expanso da capacidade operacional por meio
da aquisio de equipamentos e ampliao da rea; da
aquisio de novas empresas ou ativos na indstria de carne
bovina. O restante dos recursos foi reservado para capital de
giro da Companhia.
Net Revenue
Net Revenue for the Australia Division totaled
December 30, 2007, compared to the US$ 515.5 million
for the 13-week period ending September 23, 2007. The
increase of US$ 79.4 million or 15.4% reects the 20%
increase in sales prices over the 3.7% reduction in sales
volumes, as well as having an additional week in the fourth
quarter. The sales prices, 80% of which are denominated
in US$, increased to offset the 5% appreciation of the AU$
against the US$.
EBITDA
EBITDA totaled $ 20.0 million for the 14-week period ending
December 30, 2007, compared to the negative
US$ -1.3 million for the 13-week period ending September
23, 2007. The increase of US$ 21.3 million or 1,661.3%
reects 5% appreciation of the AU$ against the US$ during
the period.
Capital Market
On March 7, 2007, JBS S.A. entered the New Market
Participation Agreement for listing on the BOVESPAs Novo
Mercado (New Market) segment and, on April 2, 2007, the
Company held its rst public offering of shares, consisting
of 200,000,000 shares representing 23.5% of its capital
stock. JBS S.A.s shares are traded under the ticker JBSS3.
On the date of the IPO, the price per-share was R$ 8.00,
which generated capital of R$ 1,600,000,000.00 for the
Company.
JBS used the resources obtained through the Offering for
its strategy to expand operational capacity through the
acquisition of equipment and expanding areas, as well
as the acquisition of new companies or assets in the beef
industry. The remaining resources were reserved for use as
working capital for the Company.

Carne Bovina Austrlia Beef Australia
Destino dos Recursos Obtidos com a Oferta
Allocation of IPO Resources
30% 30%
Expanso/Aquisies / Expansion/Acquisitions
Capital de Giro / Working Capital
70% 70%
Acionistas N de Aes %
J&F Participaes Ltda. 597.195.003 55,43
Administradores 17 0,00
BNDES Participaes S.A.- BNDESPAR 139.470.609 12,95
ZMF Fundo de Investimento em Participaes 87.903.348 8,16
Aes em Circulao 252.831.023 23,47
Total 1.077.400.000 100,00
Shareholders Number of Shares %
J&F Participaes Ltda. 597,195,003 55.43
Managers 17 0.00
BNDES Participaes S.A.- BNDESPAR 139,470,609 12.95
ZMF Fundo de Investimento em Participaes 87,903,348 8.16
Outstanding Shares 252,831,023 23.47
Total 1,077,400,000 100.00
Composio Acionria em 31 de dezembro de 2007
Shareholder Structure as of December 31, 2007
Gesto de Riscos
A JBS se antecipa aos potenciais problemas que podem afetar
o setor de produo e comercializao de carne bovina,
principalmente no que diz respeito a barreiras comerciais.
A estratgia da Companhia de expandir suas operaes em
plantas localizadas em diversos estados no territrio brasileiro
fundamental para proteg-la de riscos relativos a barreiras
tossanitrias no comrcio internacional de carne bovina in
natura, bem como de produtos derivados da carne bovina.
No caso de ocorrncia de febre aftosa e eventuais bloqueios
comerciais para alimentos de origem bovina produzidos
em determinadas regies do pas, a JBS poder manter
as exportaes de seus produtos por meio da produo
originada nas plantas localizadas em reas que no esto
sob embargo comercial.
Tambm contribui com a Gesto de Riscos referentes a
barreiras comerciais a internacionalizao da produo
com a pulverizao de plantas em outros pases (Argentina,
Estados Unidos e Austrlia). A produo distribuda em
diferentes pases protege a Companhia de barreiras
comerciais de cunho poltico ou tossanitrio.
Investimentos e Perspectivas
Os investimentos da JBS em 2007 somaram R$ 641,0
milhes, entre aquisio de bens, equipamentos e unidades
produtivas, alm de projetos de expanso nas plantas
j incorporadas ao portflio da Companhia. Entre esses
dispndios, destacam-se:
Ampliao da unidade de carne industrializada da unidade
em Andradina (SP), concluda na primeira quinzena de
outubro, aumentando a capacidade produtiva de 30
toneladas por dia para 100 toneladas por dia;
Ampliao da capacidade de abate e desossa da
unidade de Barra do Gara (MT), de 1.300 cabeas por
dia para 2.500 cabeas por dia, sendo que a primeira
fase da ampliao j foi concluda e a capacidade atual
da unidade de 2.000 cabeas/dia;
Risk Management
JBS anticipates potential problems that could potentially
affect the beef production and selling sector, especially
regarding trade barriers.
The Companys strategy of expanding its operation at plants
located in various states throughout Brazil is fundamental to
protect the Company against phytosanitary embargos in the
foreign fresh beef market, as well as beef-derived products.
In the case of instances of foot-and-mouth disease and
potential restrictions on beef-based foods produced in
particular regions of Brazil, JBS would be able to continue to
export its products by exporting products produced at plants
located in regions not subject to specic embargos.
Another important trade embargo risk-management strategy
is the internationalization of the production process with
the distribution of plants in other countries (Argentina, the
U.S., and Australia). Spreading out production into different
counties protects the company from political or phytosanitary
trade embargos.
Investments and Prospects
In 2007 JBSs investments totaled R$ 641.0 million, from
the acquisition of assets, equipment, and production plants,
as well as enlargement projects at plants already belonging
to the Companys portfolio. Among these allocations, the
following deserve special mention:
Expansion of the processed beef unit at the Andradina
(state of So Paulo) plant, completed during the rst half
of October, increasing production capacity there from
30 to 100 tonnes per day;
Expansion of the slaughtering and deboning capacity
at Barra do Gara plant (state of Mato Grosso), from
1,300 to 2,500 heads per day, the rst phase of
which has already been completed, giving this plant a
current capacity of 2,000 head per day;
unidade de Campo Grande (MS), de 1.300 cabeas por
dia para 3.000 cabeas por dia;
unidade de Vilhena (RO), de 900 cabeas por dia para
2.200 cabeas por dia;
Construo do novo terminal de contineres para
exportao em Cubato (SP), inaugurado em outubro de
2007, com capacidade para receber e armazenar 240
contineres;
Outros investimentos, tais como compra de novos
equipamentos e manuteno das unidades produtoras.
Aquisies realizadas em 2007
Em janeiro, a JBS adquiriu 100% das aes de emisso
da empresa norte-americana SB Holdings e suas
subsidirias, Tupman Thurlow, Astro Sales Internacional
e Austral Foods, importante distribuidora de produtos
industrializados de origem de carne bovina no
mercado norte-americano. O valor da aquisio foi de
US$ 11,9 milhes.
at Campo Grande plant (state of Mato Grosso do Sul),
from 1,300 to 3,000 heads per day;
at Vilhena plant (state of Rondnia), from 900 to
2,200 heads;
Construction of new export container terminal in
Cubato (state of So Paulo), inaugurated in October of
2007, having receiving and storage capacity for 240
containers;
Other investments, such as the purchase of new
equipment and maintenance of production plants.
2007 Acquisitions
In January, JBS acquired 100.0% of the stocks issued by
the American company SB Holdings and its subsidiaries
Tupman Thurlow, Astro Sales International and Austral
Foods, an important distributor of processed beef
products to the American market. The amount of the
acquisition was US$ 11.9 million.
A consolidao das operaes e resultados das empresas adquiridas s
operaes da JBS deve colocar a Companhia na terceira posio entre
as maiores empresas no Brasil em faturamento, alm de concentrar JBS
o processamento de 10% da carne consumida no mundo
The consolidation of operations and results from the acquired companies
with JBSs operations should make the Company third in billing among
the largest companies in Brazil and bring the Companys share of all beef
processing worldwide to 10%
Por meio da Swift, a Companhia adquiriu uma
planta de abate em Berazategui, Buenos Aires, com
capacidade de abate de aproximadamente 1.000
cabeas de gado por dia.
Frigorco Garantia, no Paran, que aumentou a
capacidade de abate da JBS em 1.500 cabeas/dia
e uma propriedade rural no municpio de Castilho, no
estado de So Paulo, destinada ao incio da atividade de
connamento de bovinos pela JBS.
A Companhia adquiriu a empresa fabricante de latas para
embalagens Argenvase, localizada na Argentina, dando
com isso continuidade sua estratgia de garantir a
fabricao de embalagens seguras para seus produtos.
Aquisies Recentes
Em outubro de 2007, por meio da subsidiria Swift-
Armour S.A. Argentina, a JBS adquiriu o frigorco Col
Car S.A., localizado na cidade de Colonia Caroya,
provncia de Crdoba, Argentina. A unidade de
Colonia Caroya possui instalaes e equipamentos
modernos e tem capacidade de abate e desossa de
700 cabeas por dia, com produo destinada ao
mercado interno e exportao. O valor da aquisio
foi de US$ 20.250.000 e a concluso da transao
est sujeita aprovao das autoridades de defesa
da concorrncia na Argentina.
Through Swift, The Company acquired a slaughtering
plant in Berazategui, Buenos Aires, with a slaughtering
capacity of approximately 1,000 head of cattle per
day.
The Frigorco Garantia, in the Brazilian state of
Paran, which increased JBSs daily slaughtering
capacity by 1,500 head, as well as a rural property in
the city of Castilho, in the state of So Paulo, which will
be used for cattle connement for JBS.
The Company acquired Argenvase (located in Argentina),
a company that produces cans for food products, a move
in line with the Companys strategy to guarantee the
fabrication of safe packaging for all of its products.
Recent Acquisitions
In October 2007, by means of the subsidiary Swift-
Armour S.A. Argentina, JBS acquired the meatpacker
Col Car S.A., located in the city of Colonia Caroya,
province of Crdoba, Argentina. The Colonia Caroya
plant has modern facilities and equipment and a
slaughtering and deboning capacity of 700 head per
day, with production target at the domestic and foreign
markets. The amount of this transaction was
US$ 20,250,000 and its completion is subject to
approval by anti-trust authorities in Argentina.
As aquisies permitiro JBS maior economia de escala e ecincias
operacionais, somando, por meio de todas as Unidades de Produo,
um faturamento Anual de US$ 21,5 bilhes. Esse um elemento
fundamental para a estratgia da Companhia de gerar valor aos
acionistas, clientes, fornecedores e funcionrios
The acquisitions will allow JBS greater economy of scale and operational
efciencies, totaling an annual billing, through all of its Production Plants,
of US$ 21.5 billion. This is a key element in the companys strategy to
create value for its shareholders, clients, suppliers, and employees
A aquisio da planta de Colonia Caroya parte
da estratgia da JBS de internacionalizao e
consolidao do setor mundial de carne bovina e
representa a continuidade do processo de expanso no
Mercosul. Com esta aquisio, a Companhia passar
a operar um total de seis unidades na Argentina, com
uma capacidade total de abate de 6.700 cabeas
de gado por dia naquele pas, o que elevar a
capacidade total de abate da JBS no Mercosul
para 25,1 mil cabeas por dia com a aprovao e
concluso do processo de aquisio.
Em dezembro de 2007, a JBS tambm anunciou a
compra, concluda no incio de 2008, de 50% da
Inalca, lder absoluta na Itlia e uma das principais
produtoras de carne bovina do mercado europeu com
atuao na Rssia, frica e Europa. A aquisio, no
valor de 225 milhes de euros, representa uma aliana
estratgica que criar sinergias importantes entre
produtos e canais de comercializao, introduzindo
produtos da JBS a importantes mercados no leste
europeu e aproximando a Inalca dos principais
fornecedores mundiais de carne bovina.
Com a compra das empresas National Beef Packing
Company, LLC (National Beef), Smitheld Beef Group,
Inc (Smitheld Beef) e o Group Tasman, incluindo a
Tasman Group Services Pty Ltda e a Industry Park Pty Ltda
(Tasman), anunciada em janeiro de 2008 e aprovada
pela autoridade regulatria do setor na Austrlia em
23/04/2008, a JBS consolida sua liderana mundial
no setor de carne bovina. A negociao faz parte da
estratgia de globalizao da JBS e de construo
de uma plataforma sustentvel de abate, produo e
comercializao de carne nos EUA e Austrlia.
The acquisition of the Colonia Caroya plant is part
of the Companys strategy of internationalization
and consolidation of the global beef sector and also
represents continuity in the Mercosur expansion process.
Once this acquisition is approve and nalized, the
Company will possess a total of six plants in Argentina
with a total slaughtering capacity of 6,700 head of
cattle per day in that country, increasing JBSs total
Mercosur slaughtering capacity to 25,100 head
per day.
In December 2007, JBS announced the purchase
(completed in 2008) of 50% of Inalca, the absolute
leader in Italy and one of the largest producer of beef
products of the European market, with operations in
Russia, Africa, and Europe. The acquisition, at a cost
of 225 million Euros, represents a strategic alliance
that will create important synergies between products
and selling channels, introducing JBS products to key
markets throughout Western Europe and bringing Inalca
into closer contact with the worlds main beef suppliers.
With the purchase of National Beef Packing Company,
LLC (National Beef), Smitheld Beef Group, Inc.
(Smitheld Beef) and the Tasman Group, including
Tasman Group Services Pty Ltd. and Industry Park Pty Ltd.
(Tasman), announced in January 2008 and approved
by the Australian agency that regulates the sector on
April 23, 2008, JBS consolidates its global leadership
in the global beef sector. This transaction is part of the
Companys strategy of globalization and of creating a
sustainable slaughtering, production, and sales platform
in the U.S. and in Australia.
Para a JBS, a aquisio de 50% da Inalca representa uma semente
plantada para o crescimento da Companhia para o mercado europeu
For JBS, the acquisition of 50% of Inalca represents the planting of a seed
for the Companys future growth in the European market
Perspectivas do Crescimento JBS
Resultados das Aquisies
JBS Growth Prospects
Results of Acquisitions
44,700
63,897
50
120
Production Units Number of Employees
51.4
79.2
44.700
63.897
51,4
79,2
Slaughtering Capacity (thousands heads/day)
Nmero de Funcionrios Unidades de Produo Capacidade de Abate (mil bovinos/dia)
. Geverncnc CerpercIvc
Corporate Governance
R$ 17,5 milhes
distribudos entre os
acionistas em 2007
|o .' u||o| us|u|sou |o s|u|o|o|uo|s | 200.
A
JBS tem como marcas corporativas o compromisso com
a transparncia e com boas prticas de governana.
Em 7 de maro de 2007, a Companhia celebrou o
Contrato de Participao no Novo Mercado com a Bovespa,
comprometendo-se voluntariamente a cumprir prticas de boa
governana e maiores exigncias de divulgao de informaes
em relao quelas j impostas pela legislao brasileira.
Ampliam-se, assim, os direitos dos acionistas e melhora-se a
qualidade da informao disponibilizada ao mercado.
O Estatuto Social da JBS determina que a empresa seja
administrada por um Conselho de Administrao e por uma
Diretoria. Tambm prev Comits de Gesto e um Conselho
Fiscal de funcionamento no permanente, devendo ser
instalado a pedido dos acionistas.

Conselho de Administrao
Atualmente formado por 6 membros eleitos em assemblia
geral de acionistas para um mandato unicado de 2 anos
e sujeitos reeleio, o Conselho o rgo responsvel
por determinar as polticas e diretrizes dos negcios
da Companhia, supervisionar a Diretoria e monitorar
periodicamente a implementao, pela Diretoria, das
polticas e diretrizes por ele estabelecidas.
Os membros do Conselho de Administrao esto sujeitos
destituio a qualquer tempo, com ou sem justa causa, em
uma assemblia geral de acionistas. O Conselho se rene
uma vez a cada trimestre e a qualquer momento quando uma
The commitment to transparency and to best practices of
corporate governance is priorities for JBS. On March 7,
2007, the Company entered the New Market Participation
Agreement with the BOVESPA, voluntarily committing itself
to comply with practices of good governance and greater
requirements in information disclosure than those already
imposed by Brazilian legislation.
This commitment gives shareholders more rights and
improves the quality of information released to the market.
JBSs Bylaws stipulate that the company be managed by
a Board of Directors and a Board of Executive Ofcers. It
also has provisions for installing Management Committees
and a non-permanent Fiscal Council, to be assembled at
the request of shareholders.

Board of Directors
Currently consisting of 6 members elected at the general
shareholders meeting for a unied 2-year term of ofce,
reelection allowed, the board of directors is the decision-
making body responsible for, among other matters, establishing
policies and guidelines for its business. The board of directors
also supervises its board of executive ofcers and monitors
their implementation of the policies and guidelines that are
established by the board of directors.
The members of JBSs board of directors are subject to removal
at any time, with or without cause, at a general shareholders
meeting. The Board of Directors meets at least once every
Compromisso JBS com as melhores prticas de governana:
Transparncia
Administrao responsvel
Foco no retorno para o acionista

JBSs Commitment to the best practices of corporate governance:
Transparency
Liable management
Focus on returns for shareholders

reunio extraordinria for convocada pelo presidente ou por
qualquer outro membro. Cada conselheiro tem direito a 1
voto nas deliberaes do rgo, sendo que as deliberaes
do Conselho de Administrao so tomadas por maioria de
seus membros.
quarter and at any time when an extraordinary meeting is
called by the chairman or by any other member. Each member
has the right to one vote on all matter decided by the board,
and all of the resolutions are taken by majority vote.
Membros do Conselho de Administrao Cargo Data de eleio Trmino do mandato
Joesley Mendona Batista Presidente 2/1/2007 Abril de 2009
Wesley Mendona Batista Vice-Presidente 2/1/2007 Abril de 2009
Jos Batista Sobrinho Conselheiro 2/1/2007 Abril de 2009
Jos Batista Jr. Conselheiro 2/1/2007 Abril de 2009
Marcus Vinicius Pratini de Moraes
(1)
Conselheiro 2/1/2007 Abril de 2009
Affonso Celso Pastore
(1)
Jos Cludio Rgo
(1)
(1) Conselheiros Independentes
Board Members Position Date of Election End of Term
Joesley Mendona Batista Chairman 1/2/2007 April, 2009
Wesley Mendona Batista Vice-chairman 1/2/2007 April, 2009
Jos Batista Sobrinho Member 1/2/2007 April, 2009
Jos Batista Jr. Member 1/2/2007 April, 2009
Marcus Vinicius Pratini de Moraes
(1)
Member 1/2/2007 April, 2009
Affonso Celso Pastore
(1)
Member 1/2/2007 April, 2009
Jos Cludio Rgo
(1)
Member 9/28/2007 April, 2009
(1) Independent members
Diretoria
A Diretoria o rgo administrativo executivo. Os diretores
executivos so os representantes legais da Companhia,
sendo responsveis pela organizao interna, processo
deliberativo, operaes dirias e implementao de polticas
e diretrizes gerais estabelecidas periodicamente pelo
Conselho de Administrao.
Atualmente, formada por 4 membros eleitos em reunio do
Conselho de Administrao, com mandato unicado de 3
anos e sujeitos reeleio.
Eventos Subseqentes
Conselho de Administrao
No dia 11/04/2008 o Sr. Demstenes Marques foi
eleito Conselheiro Independente, ocupando a posio
concedida anteriormente ao Sr. Affonso Celso Pastore.

Conselho Fiscal
Tambm na data de 11/04/2008 foi instalado o
Conselho Fiscal no permanente na JBS, conforme previsto
no Estatuto Social da Companhia.
Board of Executive Ofcers
JBS board of executive ofcers is its managing executive body.
The members of the board of executive ofcers are the legal
representatives of the Company and are responsible for the
internal organization, decision-making, day-to-day operations
and the implementation of the general policies and guidelines
established from time to time by the board of directors.
The executive board currently consists of 4 members, elected
at a board of directors meeting. They serve a 3-year term of
ofce, and are eligible for reelection.
Subsequent Events
Board of Directors
On April 11, 2008, Mr. Demstenes Marques was elected
as an independent member, taking the place left vacant by
Mr. Affonso Celso Pastore.

Fiscal Council
Also on April 11, 2008, a non-permanent Fiscal Council
was established, pursuant to the Companys bylaws.
Diretores Cargo Data de eleio Trmino do mandato
Joesley Mendona Batista Diretor Presidente 2/1/2007 2/1/2010
Wesley Mendona Batista Diretor Executivo de Operaes 2/1/2007 2/1/2010
Francisco de Assis Diretor Jurdico 2/1/2007 2/1/2010
Srgio Longo Diretor de Finanas 2/1/2007 2/1/2010
Executive Ofcers Position Date of Election End of Term
Joesley Mendona Batista Chief Executive Ofcer 1/2/2007 1/2/2010
Wesley Mendona Batista Executive Operations Ofcer 1/2/2007 1/2/2010
Francisco de Assis Legal Ofcer 1/2/2007 1/2/2010
Srgio Longo Chief Finance Ofcer 1/2/2007 1/2/2010
Remunerao
Compete aos acionistas da JBS, reunidos em assemblia
geral, xar a remunerao anual, de modo global
ou individualizado, dos membros do Conselho de
Administrao, Diretoria e Conselho Fiscal, se instalado.
Plano de Opo de Compra de Aes
Em Assemblia Geral Extraordinria realizada em 9 de maro
de 2007, foi aprovado um Plano de Opo de Compra
de Aes para diretores estatutrios e executivos. Tambm
so elegveis os funcionrios prprios e das controladas
que, de acordo com critrio prprio, tenham se destacado
por contribuir signicativamente para o desempenho da
Companhia, ou cuja contratao seja de vital importncia
para a boa execuo dos planos e estratgias.
O Plano administrado pelo Conselho de Administrao, ao
qual compete denir a quantidade de opes e a forma de
distribuio destas entre os funcionrios elegveis, o preo de
exerccio das opes e outras condies aplicveis.
A quantidade total das aes destinadas ao Plano no poder
ultrapassar a 2% do capital social por ano. O preo de
compra ou subscrio das aes determinado com base no
valor unitrio das aes da Companhia, sendo correspondente
mdia aritmtica do valor das aes vericado nos preges
dos cinco dias anteriores data de outorga.
Poltica de Dividendos
Todos os acionistas, na data de declarao dos dividendos,
tm direito ao recebimento de dividendos. Os acionistas da
Companhia deliberam sobre a proposta do Conselho de
Administrao de destinao do lucro lquido do exerccio
social anterior.
O dividendo obrigatrio da JBS de no mnimo 25% do lucro
lquido ajustado. A declarao anual de dividendos, incluindo
o pagamento de dividendos alm do dividendo mnimo
obrigatrio, exige aprovao em Assemblia Geral Ordinria
por maioria de votos de acionistas titulares das aes da JBS.
Compensation
Collective or individual overall compensation of members
of the Board of Directors, the Board of Executive Ofcers,
and the Fiscal Council, if installed, is determined by JBSs
shareholders at an annual shareholders meeting.
Stock Option Plan

A Stock Option Plan for executive and non-statutory
officers was approved at the extraordinary shareholders
meeting held on March 9, 2007. All of the Company
and its subsidiaries employees who, by their own merit,
have stood out by making significant contributions to
the Companys performance, or whose hiring is vital to
a great performance of plans and strategies, are also
eligible to participate.
The plan is managed by the Board of Directors, which
decides the number of options and the distribution method
among the employees, as well as the option exercise price
and other applicable conditions.
The total number of shares available to the Plan cannot surpass
2% of the Companys capital stock per year. The purchase or
subscription price of the shares is determined based on the
unit amount of the Companys shares, corresponding to the
mathematical average of the share prices according to trading
sessions for the 5 days prior to the offering.
Dividend Policy

All shareholders are entitled to receive the dividends on
the date when dividends were declared. The Companys
shareholders will resolve on the Board of Directors
proposal to allocate the net income of the prior scal year.
The JBS mandatory dividend is of at least 25% of the
adjusted net income. The yearly distribution of dividends,
including dividends in addition to the minimum mandatory
dividend, requires approval at an annual shareholders
meeting, by majority of votes of holders of JBSs shares.
Histrico de Pagamento de Dividendos
A JBS distribuiu aos seus acionistas dividendos e juros
sobre o capital prprio no montante de R$ 21,8 milhes
relativos a 2004, R$ 31,7 milhes relativos a 2005 e
R$ 11,2 milhes relativos a 2006.
Operaes com Partes Relacionadas
No curso regular dos negcios, a JBS contrata operaes
com partes relacionadas em condies plenamente
comutativas e de acordo com as prticas e valores de
mercado. Adicionalmente, mantm contrataes entre
empresas do grupo econmico da Companhia com o
objetivo de manter servios de suporte (incluindo servios
administrativos, jurdicos, nanceiros, de administrao
e controladoria, recursos humanos e de tecnologia de
informao), bem como de realizar sua atividade principal
(incluindo a compra e venda de matria-prima e de gado).
Payment of Dividend History
JBS paid dividends and interest on equity to its shareholders
in the amounts of R$21.8 million, R$31.7 million, and
R$11.2 million in 2004, 2005 and 2006, respectively.
Related Party Transactions
In the regular course of its business, JBS engages in
transactions with related parties on a wholly commutative
basis and in accordance with market values and practices.
In addition, the Company has agreements with companies
of its economic group in order to maintain support services
(including administrative, legal, nancial, management,
controllership, human resources, and IT services), as well as
to carry out its primary operations (including the purchase
and sale of raw material and cattle).
7. GesIe de Pessecs
Personnel Management
44.700
funcionrios em
^^,.00 oup|o,oos vo||uvuo | 200.
todo o mundo em 2007
O capital humano o maior patrimnio da JBS. Esse o princpio
que direciona as polticas de Recursos Humanos da Companhia,
valorizando o desenvolvimento prossional e criativo em um ambiente
de trabalho saudvel e seguro

Human capital is JBSs best asset. This is the principle that governs
our Human Resources policies, which value professional and creative
development in a secure and healthy environment

A
JBS acredita que o capital humano seu maior
patrimnio. Para a Companhia, o desenvolvimento
de uma empresa est atrelado ao desenvolvimento
humano no que diz respeito prosperidade na prosso,
ao comprometimento com o trabalho, ao aprendizado e
ao crescimento.
Assim, a JBS estabelece com seus funcionrios uma relao
de parceria, em que cada uma das partes cumpre com
seus deveres e tem garantidos seus direitos. Uma atuao
responsvel em polticas de Recursos Humanos, respeitando
os direitos individuais, a legislao trabalhista e construindo
um ambiente de trabalho saudvel e seguro com base na
igualdade de oportunidades.

Atrao e Reteno de Talentos
Os Recursos Humanos da JBS esto focados no
desenvolvimento de polticas que permitam a atrao, o
crescimento e a reteno de talentos, formando um time
altamente motivado e comprometido com os resultados.
O principal objetivo das polticas de RH integrar os
funcionrios nas unidades de todo o mundo com a cultura da
Companhia para que faam parte da famlia JBS, criando
assim o jeito de ser da empresa.
JBS believes that its most important asset is its human
capital. For the Company, the development of a company
is closely tied to the development of its personnel in terms
of professional prosperity, commitment to work, learning,
and growth.
Therefore, JBS establishes a partnership relationship with
its employees, in which each party has duties and has its
rights guaranteed. The Company implements responsible
Human Resources policies that respect the rights of
individuals and employment legislation and create a secure
and healthy work environment based on principles of equal
opportunity.

Talent Recruitment and Retention
JBSs The Human Recourses department focuses on developing
policies that foment the recruitment, development, and
retention of talents, bringing together a team that is highly
motivated and committed to results. The main goal of our
HR policies is to integrate our employees, wherever they may
work around the globe, into Companys culture, so that they
feel a part of the JBSs family, creating a company-wide sense
of identity.
2006 2007
19,320
44,700
19.320
44.700
131%
Perl dos Colaboradores
Employee prole
Crescimento
Um salto no nmero de
funcionrios em 2007
Growth
A hike in the number of
employees in 2007
Homens / Male
Mulheres / Female
71,5% 71,5%
28,5% 28,5%
71.5% 71.5%
28.5% 28.5%
Brasil / Brazil
EUA / USA
14,673 14,673
14.673 14.673
10.837 10.837
10,837 10,837
3,525 3,525 3,525
3.525 3.525
3,716 3,716 3,716
3.716 3.716
Brasil / Brazil
EUA / USA
1.304 1.304
1,304 1,304
5.858 5.858
5,858 5,858
5 3 533 55 533
5,372 5,372
5.372 5.372
Employees by gender
Men by production division (total: 32,751)
Women by production division (total: 13.067)
Funcionrios por Sexo
Homens por Diviso de Produo (total: 32.751)
Mulheres por Diviso de Produo (total: 13.067)
0.5%
0,5%
8% 8%
48% 48%
41% 41%
3% 3%
Ensino Fundamental / Primary School
Ensino Mdio / Secondary School
Ensino Superior / Higher Education
Outros / Others
Mestrado e Doutorado / Masters and PhD
* Trabalhadores temporrios com formao no determinada. A exigncia mnima da Companhia varia entre Ensino Fundamental e Ensino Mdio.
* Temporary workers of undetermined educational level. The Companys minimal education requirement varies from primary to secondary schooling levels.
Outros* / Others*
Outros / Others
Outros / Others
32,5% 32,5% 32,5%
8,7% 8,7% 8.7% 8.7%
38,6*% 38,6*% 38,6*%
19,7% 19,7% 19,7%
32.5% 32.5%
38.6*% 38.6*%
19.7% 19.7%
13,7% 13,7% ,5% , 1, 1,5% 5% 1,5%
39,0% 39,0% 45,8% 45,8% 45,8%
13.7% 13.7% 1.5 1. 11.5% 5 1.5%
39.0% 39.0% 45.8% 45.8%
Brasil
EUA
Argentina
Brazil
USA
Argentina
3%%% 3%
12% 12%
29% 29%
56% 56%
Austrlia
Australia
Escolaridade
Level of Education
3%
0,8%
0.8%
12% 12%
85% 85%
3%%% 3%
Administrativo / Administrative
Comercial / Sales
Operacional / Operational
Comercial / Sales
Comercial / Sales
95.6% 95.6%
95,6% 95,6%
3,6%
3.6%
0,8%
0.8%
12% 12%
85% 85%
Brasil
EUA
Argentina
Brazil
USA
Argentina
Comercial / Sales
10,3 10,3
10.3 10.3
88,9% 88,9%
88.9% 88.9%
Austrlia
Australia
Funcionrios por Atividade
Employees by Activity Area
Benefcios Oferecidos
A Companhia oferece remunerao compatvel com os
ndices do mercado, alm dos benefcios previstos pela lei
especca em cada pas de atuao. A JBS tambm prev
auxlios adicionais como forma de valorizar o relacionamento
com os funcionrios e construir um ambiente de trabalho
saudvel, alm de manter boas relaes com instituies
representativas dos funcionrios.
Alguns funcionrios contam, ainda, com a possibilidade de
aderir ao Plano de Opo de Compra de Aes.
Poltica de Treinamentos e Sade e
Segurana
A JBS investe no aperfeioamento prossional de seus
funcionrios com a adoo de uma poltica de treinamentos
alinhada Cultura da Companhia. As atividades so
planejadas de acordo com a demanda.
O zelo pela sade dos funcionrios em todos os pases
onde a JBS atua tambm est incorporado ao dia-a-dia
da Companhia, com iniciativas que buscam melhorias na
qualidade de vida no ambiente de trabalho, bem como
incentivos a mudanas de hbitos que tragam resultados
positivos no aspecto comportamental.
Com relao s iniciativas que visam garantir a segurana
no trabalho, a JBS procura promover aes preventivas
como a conscientizao coletiva por um ambiente de
trabalho seguro, a disciplina para o uso dos Equipamentos
de Proteo Individual e a obedincia s normas de
segurana do trabalho.
Benets Offered
The company offers compensation compatible with market
indexes, as well as the benets required by law in each
country it has operations. JBS also provides additional aids
to enrich its relationships with employees and to create
a healthy work environment, as well as to maintain good
relationships with institutions that represent our employees.
Some employees are also eligible to participate in our
stock option plan.
Training Policy, Health, and Safety
JBS invests in the professional development of its employees
by adopting a training policy consistent with the Company
culture. Activities are planned as demand arises.
The interest in its employees health in all countries in which
it operates is also incorporated into the Companys daily
activities, through initiatives aimed at improving the quality
of life in the workplace, as well as through incentives for
changing habits in ways that can bring positive results in
terms of behavior.
In terms of initiatives designed to ensure safety and security
in the workplace, JBS actively promotes preventive actions
such as fomenting collective awareness of safety in the
work environment, discipline when it comes to using
Personal Protective Equipment, and the compliance with
workplace safety rules.
8. kespenscb|dcde CerpercIvc
Corporate Responsibility
100%
das plantas produtivas
00 o| p|ouuc|o| p|u|s uuouu|o |o oup|uss o| s||uc|u|u|
u|u opo|u|o|u| sus|u|u|||,
com foco na sustentabilidade
Adequao de
estrutural e operacional
JBS S.A. believes that its sustainable development and
business growth should go hand in hand with social and
environmental responsibility. To this end, the Company
constantly invests in improvements to the production chain at
its plants with an emphasis on the reduction of environmental
impacts, in addition to seeking ways to improve its relations
with the community through social initiatives.
JBS and the Environment
All of JBSs plants in Brazil, Argentina, the USA, and
Australia, comply with all applicable environmental
laws and regulations. This means that all plants have
environmental certications based on rules in force at
the local level. To control the environment impact of its
operations, JBS has a preventative maintenance process for
machinery, equipment, and gas ltration systems, as well as
programs for the efcient use of water and energy and the
recycling of materials routinely used by the Company. The
environmental impact of its products, processes, operations,
and services are periodically evaluated in order to identify
potential causes of environmental damages, as well as to
develop and to implement sustainable procedures.
Among the environmental responsibility initiatives adopted by
JBS, the following stand out:
The implementation of modern efuent treatment systems;
Investments in ecologically friendly equipment to save
on fuel, generating less pollution, without giving up
production efciency;
Reforestation programs, the protection of APPs Areas
of Permanent Preservation and the use of alternative
fuels, such as biodiesel;
Recycling both inside and outside the Company, and
programs to reduce greenhouse gas emissions, thereby
obtaining CER (Certied Emission Reduction) credits.
A
JBS S.A. acredita que seu desenvolvimento sustentvel
e crescimento empresarial devem estar associados
responsabilidade social e ambiental. Assim, a
Companhia investe constantemente na melhoria da cadeia
produtiva em suas plantas com foco na reduo de impactos
ambientais, alm de buscar formas de estreitar sua relao
com a comunidade por meio de iniciativas de carter social.
A JBS e o Meio Ambiente
Todas as instalaes produtivas da JBS no Brasil, Argentina,
EUA e Austrlia esto em conformidade com as Leis e
Regulamentaes ambientais aplicveis. Isso signica que
todas as plantas possuem licena ambiental de acordo com
as normas vigentes. Para controlar o impacto ambiental
das operaes, a JBS mantm um processo de manuteno
preventiva de mquinas, equipamentos e sistemas de
ltragem de gases, bem como programas para utilizao
eciente de gua e energia e reciclagem de materiais
utilizados na rotina da Companhia. Periodicamente, o
impacto ambiental dos produtos, processos, operaes
e servios so avaliados a m de identicar eventuais ou
potenciais causadores de danos ambientais relevantes, alm
de desenvolver e implementar processos sustentveis.
Entre as iniciativas de Responsabilidade Ambiental adotadas
pela JBS, destacam-se:
Implantao de modernos sistemas de tratamento de
euentes;
Investimentos em equipamentos ecologicamente
projetados para economia de combustvel, gerando
menos resduos poluentes, sem perder a ecincia
na produo;
Reorestamento, proteo de APPs reas de
Preservao Permanente e utilizao de combustveis
alternativos Biodisel;
Reciclagem dentro e fora da JBS e programas de reduo
de emisses de gases de efeito estufa obtendo Crditos
de Carbono/CER Certicado de Reduo de Emisses.
Esse compromisso incorporado pela Companhia acerca da
gesto ambiental no apenas preserva recursos naturais, mas
tambm contribui signicativamente com a reduo de custos,
reetindo positivamente nos resultados nanceiros da JBS.
JBS e Responsabilidade Social
A JBS promove projetos sociais em suas unidades de produo
como forma de consolidar o compromisso da Companhia com
a sade, o bem-estar e a educao da sociedade nas diversas
comunidades dos pases em que atua.
Entre as iniciativas de carter social, esto projetos voltados
educao e capacitao, doao de alimentos, doao de
sangue, prestao de servios gratuitos, campanhas em prol
da sade, bem-estar e qualidade de vida, atividades culturais,
entre outros.
Esses projetos contam com o envolvimento dos funcionrios
e so realizados em sua maioria por meio de parcerias com
prefeituras, universidades e entidades sociais.
A Responsabilidade Social da JBS refora seu compromisso
com a comunidade nas regies em que atua e desperta
o senso de orgulho nos funcionrios por fazerem parte de
uma Companhia que se preocupa com o desenvolvimento
sustentvel da sociedade.
The Companys commitment to environmental management
not only preserves natural resources; but it also contributes
signicantly to cost reduction, causing a positive impact on
JBSs nancial results.
JBS and Social Responsibility

JBS promotes social projects in its production plants as
a means of consolidating its commitment to the health,
well-being, and education of the communities in which it
operates.
JBSs social initiatives include education and training
programs, the donation of food, blood drives, free
services, health, well-being, and quality of life campaigns,
and cultural activities, among others.
These projects involve our employees and are usually
carried out in partnership with municipal governments,
universities, and social agencies.
JBSs social responsibility reinforce the Companys
commitment to the community in the regions in which it
operates and the idea of working for a company which
shows concern of the sustainable development of society
creates a sense of pride among its employees.
. G|essre
Glossary
ABIEC: Associao Brasileira das Indstrias Exportadoras
de Carnes.
Arroba: Unidade de medida equivalente a quinze
quilogramas.
Bloco do Pacco: Termo utilizado na indstria de carne
bovina para se referir conjuntamente aos seguintes pases:
Estados Unidos, Canad, Mxico, Japo e Coria do Sul.
BM&F: Bolsa de Mercadorias e Futuros.
Bovespa: Bolsa de Valores de So Paulo.
BSE: Encefalopatia espongiforme bovina, doena comumente
referida como doena da vaca louca.
CAGR: Taxa composta de crescimento anual.
Carne bovina in natura: Carne bovina que no sofreu
qualquer tipo de processo de industrializao.
Companhia ou JBS: Refere-se JBS S.A.
CVM: Comisso de Valores Mobilirios.
Derivativos: Ttulos e valores mobilirios negociados em
mercados de liquidao futura ou a termo, ou outros ativos
tendo por lastro ou objeto valores mobilirios de emisso da
Companhia.
EBITDA: O EBITDA reete o lucro lquido antes das receitas
e despesas nanceiras lquidas, do imposto de renda e da
contribuio social, das depreciaes e amortizaes, do
resultado no-operacional, de equivalncia patrimonial e da
participao minoritria.
IFRS: International Financial Reporting Standards.
ABIEC: Brazilian Association Of Beef Exporting Industries
(Associao Brasileira das Indstrias Exportadoras de
Carnes).
Arroba: Unit of measure equivalent to 15 kilograms.
BM&F: Brazilian Futures and Commodities Exchange.
BSE: Bovine Spongiform Encephalopathy, commonly known
as mad cow disease.
BOVESPA: So Paulo Stock Exchange.
CAGR: Compound Annual Growth Rate.
Company or JBS: Refers to JBS S.A.
CVM: Brazilian Securities and Exchange Commission.
Derivatives: Securities traded on futures or options markets,
or other assets grounded on or object of securities issued
by the Company.
EBITDA: EBITDA reects net prot before net nancial
revenues and losses, income tax, and social contribution,
depreciations and amortizations, non-operating result,
equity accounting, and minority interest.
Extraction Rate: An index used in the beef industry to
measure the number of cattle slaughtered in a country
during a year against the total size of its herd.
Fresh (In natura) beef: Beef which has not undergone any
type of processing.
IFRS: International Financial Reporting Standards.
Novo Funrural: Contribuio previdenciria incidente
sobre a aquisio de bovinos junto a produtores rurais
empregadores de pessoas fsicas, alquota de 2% incidente
sobre a receita bruta decorrente da comercializao da
produo rural.
Novo Mercado: Segmento especial de negociao de
valores mobilirios da Bovespa.
Regulation S: Regulation S do Securities Act.
Rule 144A: Rule 144A do Securities Act.
OIE: World Organization of Animal Health - Organizao
Mundial de Sade Animal.
SDE: Secretaria de Direito Econmico.
SEC: Securities and Exchange Commission, rgo
regulador do mercado de valores mobilirios dos Estados
Unidos da Amrica.
SECEX: Secretaria de Comrcio Exterior.
Securities Act: U.S. Securities Act of 1933 dos Estados
Unidos da Amrica, conforme alterado.
Swift: Swift Armour S.A. Argentina.
Taxa de Desfrute: ndice usualmente utilizado na indstria de
carne bovina que mede a quantidade de gado abatido no
pas durante um ano em relao ao seu rebanho total.
USDA: United States Department of Agriculture.
US GAAP: Prticas contbeis geralmente aceitas nos
Estados Unidos.
Novo Funrural: A social security contribution applying
to the acquisition of cattle from rural producers with
employees, in addition to the 2% rate on gross revenue
from the sale of rurally produced cattle.
Novo Mercado (New Market): A special segment for
trading securities on the BOVESPA.
Pacic Bloc: Term used in the beef industry to refer to the
United States, Canada, Mexico, Japan, and South Korea.
Regulation S: Regulation S of the U.S. Securities Act.
Rule 144A: Rule 144A of the U.S. Securities Act
OIE: World Organization of Animal Health.
SDE: Economic Law Department.
SEC: Securities and Exchange Commission, the agency
that regulates U.S. securities markets.
SECEX: Secretariat of Foreign Trade (Secretaria de
Comrcio Exterior).
Securities Act: U.S. Securities Act of 1933, as amended.
Swift: Refers to Swift Armour S.A. Argentina.
USDA: United States Department of Agriculture.
US GAAP: United States Generally Accepted Accounting
Principles.
JBS S.A. Relatrio Anual 2007 Annual Report 124
10. |n|ermces CerpercIvcs
Corporate Information
JBS S.A.
Av. Brigadeiro Faria Lima, 2.391
2 andar, conjunto 22, sala 2
CEP 01452-000
So Paulo SP Brasil
Telefone: (55**11) 3144-4000
www.jbs.com.br
Relaes com Investidores
Diretor: Jerry OCallaghan
Gerente: Rodrigo Gagliardi
Av. Marginal Direita do Tiet, 500
CEP 05118-100
So Paulo SP Brasil
Telefone: (55**11) 3144-4055
E-mail: ir@jbs.com.br
Atendimento a Acionistas
Banco Bradesco BBI S.A.
Avenida Paulista, 1.450, 3 andar
So Paulo SP Brasil
www.shopinvest.com.br
Auditores Independentes
BDO Trevisan Auditores Independentes
R. Bela Cintra, 934 - Cerqueira Csar
CEP: 01415-000 - So Paulo SP Brasil
Tel: (55**11) 3138-5000
Fax: (55**11) 3759-4717
JBS S.A.
Av. Brigadeiro Faria Lima, 2.391
2 andar, conjunto 22, sala 2
CEP 01452-000
So Paulo SP Brazil
Phone: (55**11) 3144-4000
www.jbs.com.br
Investor Relations
Ofcer: Jerry O Callaghan
Manager: Rodrigo Gagliardi
Av. Marginal Direita do Tiet, 500
CEP 05118-100
So Paulo SP Brazil
Phone: (55**11) 3144-4055
E-mail: ir@jbs.com.br
Shareholder Services
Banco Bradesco BBI S.A.
Avenida Paulista, 1.450, 3 andar
So Paulo SP Brazil
www.shopinvest.com.br
Independent Auditors
BDO Trevisan Auditores Independentes
R. Bela Cintra, 934 - Cerqueira Csar
CEP: 01415-000 - So Paulo SP Brazil
Phone: (55**11) 3138-5000
Fax: (55**11) 3759-4717
125 JBS S.A. Demonstraes Financeiras 2007 Financial Report
11. Demonstraes Financeiras
Financial Statements
128
130
132
134
13
138
140
Parecer dos Auditores Independentes
Balanos Patrimoniais
Demonstraes do Resultado
Demonstraes das Mutaes do Patrimnio Lquido
Demonstraes das Origens e Aplicaes de Recursos
Demonstraes dos Fluxos de Caixa
Notas Explicativas s Demonstraes Contbeis
Report of Independent Auditors
Balance Sheets
Statements of Income
Statements of Changes in Shareholders Equity
Statements of Financial Position
Statements of Cash Flows
Notes to the Financial Statements
18
170
172
174
17
178
180
Parecer dos Auditores Independentes
Aos administradores e acionistas da JBS S.A.:

1. Examinamos os balanos patrimoniais (individual e consolidado) da JBS S.A. e empresas controladas
em 31 de dezembro de 2007 e 2006 e as correspondentes demonstraes (individual e consolidada)
do resultado, das mutaes do patrimnio lquido e das origens e aplicaes de recursos dos exerccios
ndos nessas datas, elaboradas sob a responsabilidade de sua administrao. Nossa responsabilidade
expressar uma opinio sobre essas demonstraes contbeis. As demonstraes contbeis da
controlada indireta Swift-Armour Sociedade Annima Argentina, foram examinadas por outros auditores
independentes, cujos pareceres datados de 25 de janeiro de 2008 e 19 de janeiro de 2007,
expressam uma opinio sem ressalvas. Destacamos que as demonstraes contbeis da JBS USA (antiga
Swift Foods Company) contemplam suas atividades operacionais a partir de 11 de julho de 2007,
ocasio que a JBS S.A adquiriu o seu controle societrio.
2. Nossos exames foram conduzidos de acordo com as normas brasileiras de auditoria e
compreenderam: o planejamento dos trabalhos, considerando a relevncia dos saldos, o volume de
transaes e os sistemas contbil e de controles internos das Companhias; a constatao com base em
testes, das evidncias e dos registros que suportam os valores e as informaes contbeis divulgadas; e a
avaliao das prticas e das estimativas contbeis mais representativas adotadas pela administrao das
Companhias, bem como da apresentao das demonstraes contbeis tomadas em conjunto.
3. Em nossa opinio, baseados em nossos exames e na opinio de outros auditores independentes
conforme mencionado no pargrafo 1, as demonstraes contbeis referidas no mesmo pargrafo
representam adequadamente, em todos os aspectos relevantes, a posio patrimonial e nanceira,
individual e consolidada, da JBS S.A. e empresas controladas em 31 de Dezembro de 2007 e 2006,
o resultado de suas operaes, as mutaes do seu patrimnio lquido e as origens e aplicaes de
recursos dos exerccios ndos naquelas datas, de acordo com as prticas contbeis adotas no Brasil.
4. Nossos exames foram conduzidos com o objetivo principal de emitirmos parecer sobre as
demonstraes contbeis referidas no pargrafo 1. As demonstraes do dos uxos de caixa anexa dos
exerccios ndos em 31 de Dezembro de 2007 e 2006, so apresentadas para propiciar informaes
suplementares sobre as Companhias e no so requeridas como parte integrante das demonstraes
contbeis, de acordo com as prticas contbeis adotadas no Brasil. Essas demonstraes foram
submetidas aos procedimentos de auditoria descritos no pargrafo 2 e, em nossa opinio, esto
adequadamente apresentadas em todos os seus aspectos relevantes em relao s demonstraes
contbeis tomadas em conjunto.
5. Conforme comentado na Nota Explicativa n. 25, a aplicao antecipada pela Companhia no
exerccio ndo em 31 de dezembro 2007, dos procedimentos para reconhecimento das variaes
cambiais de investimentos mantidos no exterior, conforme disposto no Pronunciamento Tcnico n. 2 do
Comit de Pronunciamentos Tcnicos, com aplicao prevista para exerccios encerrados a partir de
dezembro de 2008, consoante Deliberao CVM n. 534 resultaria em efeito relevante no resultado do
exerccio ndo em 31 de dezembro de 2007.
So Paulo, 10 de maro de 2008
Terco Grant Thornton Auditores Independentes
CRC 2 SP 018.196/O-8
Jos Paulo da Silva Filho
Contador
CRC 1PE011318/O-0 T SP
Jos Cludio Rgo Aranha
Conselheiro
JBS S.A. Demonstraes Financeiras 2007 Financial Report
Balanos Patrimoniais
levantados em 31 de dezembro de 2007 e 2006 (em milhares de reais)
Controladora Consolidado
2007 2006 2007 2006
ATIVO
CIRCULANTE
Disponibilidades 109.221 54.375 323.709 68.629
Aplicaes nanceiras (Nota 5) 760.563 145.346 1.057.994 192.442
Contas a receber de clientes (Nota 6) 444.218 665.782 1.236.148 692.819
Estoques (Nota 7) 604.225 563.935 1.511.595 657.504
Impostos a recuperar (Nota 8) 351.677 424.941 482.918 567.264
Despesas antecipadas 4.388 1.936 44.468 2.956
Outros ativos circulantes 30.612 43.494 102.910 68.938
TOTAL DO CIRCULANTE 2.304.904 1.899.809 4.759.742 2.250.552
NO CIRCULANTE
Realizvel a Longo Prazo
Crditos com empresas ligadas (Nota 9) 60.306 67.523 17.461 -
Depsitos, caues e outros 8.249 4.742 41.443 5.626
Imposto de renda e contribuio social diferidos (Nota 17) 16.251 16.050 23.758 23.492
Impostos a recuperar (Nota 8) 31.442 24.129 44.205 34.752
Total do Realizvel a Longo Prazo 116.248 112.444 126.867 63.870
Permanente
Adiantamento para futuro aumento de capital - 35.051 - -
Investimentos em controladas (Nota 10) 2.149.919 367.822 829.975 -
Outros investimentos 10 10 10 10
Imobilizado (Nota 11) 1.328.015 899.176 2.536.098 1.125.218
Intangvel 9.615 9.615 195.513 25.187
Total do Permanente 3.487.559 1.311.674 3.561.596 1.150.415
TOTAL DO NO CIRCULANTE 3.603.807 1.424.118 3.688.463 1.214.285
TOTAL DO ATIVO 5.908.711 3.323.927 8.448.205 3.464.837
PASSIVO 2007 2006 2007 2006
CIRCULANTE
Fornecedores (Nota 12) 355.510 271.460 1.099.385 309.294
Emprstimos e nanciamentos (Nota 13) 858.975 579.128 2.384.836 653.638
Obrigaes scais, trabalhistas e sociais (Nota 14) 93.158 73.142 203.613 84.447
Dividendos declarados (Nota 15) 17.465 - 17.465 -
Outros passivos circulantes 50.294 41.545 70.536 51.886
TOTAL DO CIRCULANTE 1.375.402 965.275 3.775.835 1.099.265
NO CIRCULANTE
Emprstimos e nanciamentos (Nota 13) 1.341.313 2.039.977 1.364.800 2.039.977
Imposto de renda e contribuio social diferidos (Nota 17) 59.642 62.665 99.755 62.665
Proviso para contingncias (Nota 16) 45.979 47.207 55.681 53.005
Outros passivos no circulantes 31.787 25.758 101.702 26.471
TOTAL DO NO CIRCULANTE 1.478.721 2.175.607 1.621.938 2.182.118
PARTICIPAO DE MINORITRIOS - - (4.156) 409
PATRIMNIO LQUIDO (Nota 18)
Capital social 1.945.581 52.524 1.945.581 52.524
Reserva de capital 985.664 - 985.664 -
Reserva de reavaliao 123.343 130.521 123.343 130.521
TOTAL DO PATRIMNIO LQUIDO 3.054.588 183.045 3.054.588 183.045
TOTAL DO PASSIVO 5.908.711 3.323.927 8.448.205 3.464.837
As notas explicativas so parte integrante das demonstraes contbeis.
Demonstraes do Resultado
para os exerccios ndos em 31 de dezembro de 2007 e 2006 (em milhares de reais)
2007 2006 2007 2006
RECEITA OPERACIONAL BRUTA DE VENDAS
Receitas de vendas de produtos
Mercado interno 2.118.600 2.069.887 8.974.879 2.244.856
Mercado externo 2.321.456 2.264.048 5.752.224 2.504.195
4.440.056 4.333.935 14.727.103 4.749.051
DEDUES DE VENDAS
Devolues e descontos (191.932) (105.629) (273.556) (139.799)
Impostos sobre as vendas (252.282) (272.097) (311.976) (307.570)
(444.214) (377.726) (585.532) (447.369)
RECEITA OPERACIONAL LQUIDA 3.995.842 3.956.209 14.141.571 4.301.682
Custo dos produtos vendidos (2.915.674) (3.028.650) (12.609.093) (3.248.543)
LUCRO BRUTO 1.080.168 927.559 1.532.478 1.053.139
(DESPESAS) RECEITAS OPERACIONAIS
Administrativas e gerais (74.188) (107.792) (275.594) (154.387)
Com vendas (374.469) (404.271) (786.630) (437.857)
Resultado nanceiro lquido (Nota 19) (276.283) (279.297) (403.113) (247.145)
Resultado de equivalncia patrimonial (Nota 10) (276.591) 69.804 - -
Amortizao de gio de investimentos (74.824) - (74.853) -
Despesas extraordinrias (Nota 20) (67.082) - (67.082) -
(1.143.437) (721.556) (1.607.272) (839.389)
RESULTADO OPERACIONAL (63.269) 206.003 (74.794) 213.750
RESULTADO NO OPERACIONAL (171) (791) 11.206 (2.569)
2007 2006 2007 2006
RESULTADO ANTES DA PROVISO PARA IMPOSTO DE
RENDA E CONTRIBUIO SOCIAL
(63.440) 205.212 (63.588) 211.181
Imposto de renda e contribuio social do exerccio (101.793) (62.384) (107.104) (72.997)
Imposto de renda e contribuio social diferidos 201 16.050 2.201 19.482
(101.592) (46.334) (104.903) (53.515)
LUCRO (PREJUZO) ANTES DA PARTICIPAO DOS
MINORITRIOS
(165.032) 158.878 (168.491) 157.666
Participao minoritria no resultado de controladas - - 3.459 1.212
LUCRO LQUIDO (PREJUZO) DO EXERCCIO (165.032) 158.878 (165.032) 158.878
Prejuzo por lote de mil aes no nal do exerccio - em
reais
(153,18) 3,02
Demonstrao da apurao do indicador EBITDA
(lucro antes dos efeitos nanceiros, imposto de renda,
contribuio social, depreciao e amortizao)
Resultado antes da proviso para imposto de renda e
contribuio social
(63.440) 205.212 (63.588) 211.181
Resultado nanceiro lquido (Nota 19) 276.283 279.297 403.113 247.145
Depreciao e amortizao 56.626 66.775 120.807 86.916
Resultado no operacional 171 791 (11.206) 2.569
Resultado de equivalncia patrimonial (Nota 10) 276.591 (69.804) - -
Despesas extraordinrias (Nota 20) 67.082 - 67.082 -
Amortizao de gio de investimentos 74.824 - 74.853 -
VALOR EBITDA 688.137 482.271 591.061 547.811
Demonstraes das Mutaes do
Patrimnio Lquido
Capital social Reserva de capital gio
SALDOS EM 31 DE DEZEMBRO DE 2005 7.500 -
Distribuio de lucros acumulados - -
Aumento de capital 40.977 -
Aumento de capital por incorporao 508.135 -
Constituio de reserva de reavaliao - -
Realizao da reserva de reavaliao - -
Lucro lquido do exerccio - -
Destinao do resultado:
. Capitalizao de lucros acumulados 520.892 -
Ciso parcial (1.024.980) -
SALDOS EM 31 DE DEZEMBRO DE 2006 52.524 -
Aumento de capital 1.893.057 -
gio na emisso de aes - 1.160.983
Realizao da reserva de reavaliao - -
Prejuzo do exerccio - -
Dividendos propostos (R$ 16,21 por lote de mil aes) - (17.465)
Absoro de prejuzos - (157.854)
SALDOS EM 31 DE DEZEMBRO DE 2007 1.945.581 985.664
Reserva de reavaliao Lucros acumulados Total
16.627 370.925 395.052
- (11.182) (11.182)
- - 40.977
- - 508.135
116.165 - 116.165
(2.271) 2.271 -
- 158.878 158.878
- (520.892) -
- - (1.024.980)
130.521 - 183.045
- - 1.893.057
- - 1.160.983
(7.178) 7.178 -
- (165.032) (165.032)
- - (17.465)
- 157.854 -
123.343 - 3.054.588
2007 2006 2007 2006
ORIGENS DE RECURSOS
Das operaes
. Lucro lquido (prejuizo) do exerccio (165.032) 158.878 (165.032) 158.878
Itens que no afetam o capital circulante:
. Resultado de equivalncia patrimonial 276.591 (69.804) - -
. Depreciao e amortizao 56.626 66.775 120.807 86.916
. Amortizao de gio de investimento 74.824 - 74.853 -
. Valor residual do imobilizado e diferido baixados 2.412 3.957 3.310 7.349
. Imposto de renda e contribuio social diferidos (201) (16.050) (2.201) (19.482)
. Proviso para contingncias (1.228) 47.207 2.676 53.005
. Participao de minoritrios - - (3.459) (1.212)
. Encargos e variaes sobre ativos e passivos no circulantes 59.331 (12.459) 46.465 (14.211)
Total proveniente das operaes 303.323 178.504 77.419 271.243
Dos scios
. Aumento de capital e gio de subscrio 3.054.040 40.977 3.054.040 40.977
. Aumento de giro lquido recebido por incorporao - 493.478 - 493.478
3.054.040 534.455 3.054.040 534.455
De terceiros
. Financiamentos 47.174 1.039.179 2.149.492 1.039.179
. Diminuio de ativos no circulantes 54.918 - -
. Acrscimo de outros passivos no circulantes 2.195 32.110 111.920 45.887
104.287 1.071.289 2.261.412 1.085.066
TOTAL DAS ORIGENS 3.461.650 1.784.248 5.392.871 1.890.764
Demonstraes das Origens e
Aplicaes de Recursos
2007 2006 2007 2006
APLICAES DE RECURSOS
. Diminuio do giro lquido transferido por ciso - 479.860 - 479.860
. Acrscimo de ativos no circulantes - 64.574
. Acrscimo de investimentos 2.216.321 18.185 904.828 -
. Aquisio de imobilizado e intangvel 487.877 332.527 1.748.088 389.025
. Transferncia do passivo no circulante para o circulante 745.019 231.344 2.825.296 231.344
. Dividendos declarados / distribuio de lucros acumulados 17.465 11.182 17.465 11.182
TOTAL DAS APLICAES 3.466.682 1.073.098 5.560.251 1.111.411
AUMENTO (REDUO) DO CAPITAL CIRCULANTE (5.032) 711.150 (167.380) 779.353
VARIAO DO CAPITAL CIRCULANTE
2007 2006 2007 2006
ATIVO CIRCULANTE
No incio do exerccio 1.899.809 1.469.156 2.250.552 1.632.899
No nal do exerccio 2.304.904 1.899.809 4.759.742 2.250.552
405.095 430.653 2.509.190 617.653
PASSIVO CIRCULANTE
No incio do exerccio 965.275 1.245.772 1.099.265 1.260.965
No nal do exerccio 1.375.402 965.275 3.775.835 1.099.265
410.127 (280.497) 2.676.570 (161.700)
AUMENTO (REDUO) DO CAPITAL CIRCULANTE (5.032) 711.150 (167.380) 779.353
Demonstraes dos Fluxos de Caixa
dos exerccios ndos em 31 de dezembro de 2007 e 2006 (em milhares de reais)
2007 2006 2007 2006
Fluxo de caixa das atividades operacionais
Lucro lquido (prejuizo) do exerccio (165.032) 158.878 (165.032) 158.878
Ajustes para conciliar o resultado s disponibilidades geradas
pelas atividades operacionais:
. Depreciao e amortizao 56.626 66.775 120.807 86.916
. Proviso para crditos de liquidao duvidosa 1.819 881 1.589 1.029
. Amortizao de gio de investimento 74.824 - 74.853 -
. Participaes de minoritrios - - (3.459) (1.212)
. Resultado de equivalncia patrimonial 276.591 (69.804) - -
. Valor residual de bens baixados do ativo imobilizado 2.412 3.957 3.310 7.349
. Imposto de renda e contribuio social diferidos (201) 38.049 (2.201) 34.617
. Encargos nanceiros circulantes e no circulantes 107.134 170.000 100.689 168.248
. Proviso para contingncias (1.228) 47.207 2.676 53.005
352.945 415.943 133.232 508.830
Variaes nos ativos e passivos
Reduo (aumento) em contas a receber 49.304 (292.341) (726.332) (333.328)
Reduo (aumento) nos estoques (40.290) (87.272) (863.281) (166.964)
Reduo (aumento) de impostos a recuperar 65.951 (232.169) 71.167 (300.211)
Reduo (aumento) em outros ativos circ. e no circulantes 41.975 21.189 (111.738) 32.879
Reduo (aumento) de crditos com empresas ligadas 30.686 245.633 (17.460) 219.326
Aumento (reduo) com fornecedores 95.617 94.583 807.020 132.410
Aumento (reduo) em outros passivos circ. e no circulantes 49.236 21.376 269.925 (6.133)
Diminuio do giro lquido transferido por ciso - (479.869) - (479.869)
Aumento do giro lquido recebido por incorporao - 493.478 - 493.478
2007 2006 2007 2006
Disponibilidades lquidas geradas pelas (aplicadas
nas) atividades operacionais
645.424 200.551 (437.467) 100.418
Fluxo de caixa das atividades de investimentos
Adies no ativo imobilizado e intangvel (487.877) (332.527) (1.748.088) (389.025)
Adies nos investimentos (2.216.321) (18.185) (904.828) -
Disponibilidades lquidas aplicadas nas atividades de
investimentos
(2.704.198) (350.712) (2.652.916) (389.025)
Fluxo de caixa das atividades de nanciamentos
Emprstimos e nanciamentos captados 1.325.046 1.781.839 4.987.313 1.945.683
Pagamentos de emprstimos e nanciamentos (1.632.784) (1.793.496) (3.812.873) (1.793.496)
Aumento de capital e gio de subscrio 3.054.040 40.977 3.054.040 40.977
Dividendos declarados / distribuio de lucros acumulados (17.465) (11.182) (17.465) (11.182)
Disponibilidades lquidas geradas pelas atividades de
nanciamentos
2.728.837 18.138 4.211.015 181.982
Variao lquida no exerccio 670.063 (132.023) 1.120.632 (106.625)
Disponibilidades e aplicaes nanceiras no incio do exerccio 199.721 331.744 261.071 367.696
Disponibilidades e aplicaes nanceiras no nal do
exerccio
869.784 199.721 1.381.703 261.071
Notas explicativas s Demonstraes
Contbeis
01. Contexto operacional
A
JBS S.A (Companhia) uma empresa de capital aberto listada
no nvel Novo Mercado de governana corporativa e tem suas
aes negociadas na BOVESPA - Bolsa de Valores de So Paulo.
A Companhia e suas controladas, desenvolvem as seguintes
atividades operacionais:
a) Atividades no Brasil
A Companhia explora o ramo de abatedouro e frigoricao de
bovinos, industrializao de carnes, conservas, gorduras, raes
e produtos derivados, com unidades industriais localizadas nos
estados de: So Paulo, Gois, Mato Grosso, Mato Grosso do Sul,
Rondnia, Minas Gerais, Acre, Rio de Janeiro e Paran.
A Companhia distribui seus produtos por meio de centros de
distribuio, que esto localizados nos estados de So Paulo e
Minas Gerais.
Objetivando minimizao de custos com transportes, a Companhia
se utiliza de operaes prprias de transporte de bovinos para
abate e de produtos destinados exportao.
A controlada Mouran Alimentos Ltda. (Mouran), constituda em
julho de 2006, explora desde setembro de 2006, o ramo de
frigoricao de bovinos, industrializao de carnes, gorduras,
raes e produtos derivados, atravs de uma unidade frigorca no
Estado de So Paulo.
A controlada JBS Embalagens Metlicas Ltda. (JBS Embalagens),
confecciona embalagens metlicas em unidades fabris no Estado de
So Paulo, que so utilizadas substancialmente pela Companhia.
A Companhia explorou at 31 de dezembro de 2006 o ramo
de higiene e limpeza, com industrializao e comercializao de
sabo em barra, sabonete, detergente, desinfetante, amaciante,
glicerina farmacutica, sabo de coco, multiuso, desengordurante,
tira manchas, shampoos, condicionadores, desodorantes e
sabonetes lquidos.
Conforme descrito na letra c), o ramo de higiene e limpeza foi
cindido em 31 de dezembro de 2006, passando a ser operado
pela empresa ligada Flora Produtos de Higiene e Limpeza S.A..

b) Atividades no Exterior
A Companhia possui duas controladas indiretas na Inglaterra e Egito
para maximizar as vendas e distribuio dos produtos na Europa,
sia e frica.
A controlada indireta Swift-Armour Sociedad Annima Argentina
(Swift Armour), localizada na Argentina, se dedica explorao do
ramo de abatedouro e frigoricao de bovinos, industrializao
de carnes, conservas, gorduras, raes e produtos derivados, com
unidades industriais localizadas nas provncias de Buenos Aires,
Entre Rios e Santa F.
A Swift Armour possui duas subsidirias adquiridas em 2007 sendo
um frigorco abatedouro em Berezategui (Consignaciones Rurales) e
uma fbrica de latas localizada em Zavate, ambas na provncia de
Buenos Aires.
A controlada SB Holdings, Inc. (SB Holdings) e suas subsidirias,
Tupman Thurlow Co., Inc. (Tupman) e Astro Sales International, Inc.
(Astro) localizadas nos Estados Unidos da Amrica e adquiridas em
janeiro de 2007 vendem produtos industrializados de carne bovina,
principalmente, no mercado norte-americano.
A controlada indireta Beef Snacks do Brasil Indstria e Comrcio
de Alimentos Ltda (Beef Snacks), localizada em Santo Antnio de
Posse, Brasil, explora desde agosto de 2007 o ramo de fabricao
de Beef Jerky, comprando carne in natura no mercado interno e
exportando o produto industrializado Beef Jerky para os Estados
Unidos da Amrica.
A controlada indireta Jerky Snacks Brands, Inc (Jerky Snacks),
localizada nos Estados Unidos da Amrica, industrializa e vende
Meat Snacks (como Beef Jerky, Smoked Meat Sticks, Kippered Beef
Steak, Meat&Cheese, Turkey Jerky e Hunter Sausage). A companhia
compra produtos do Brasil e dos Estados Unidos, vendendo
principalmente nos Estados Unidos.
A controlada indireta Global BeefTrading Sociedade Unipessoal
Lda (Global BeefTrading), localizada na Ilha da Madeira,
dos exerccios ndos em 31 de dezembro de 2007 e 2006 (em milhares de reais)
Portugal, vende produtos alimentcios como carne bovina, de aves
e suna. A Global Beef Trading importa os produtos da Amrica
Latina e exporta para diversos pases, na Europa, frica, sia e
Oriente Mdio.
Em julho de 2007 a Companhia adquiriu a Swift Foods Company,
atualmente JBS USA, Inc. (JBS USA). A JBS USA abate, processa,
embala e entrega carnes in natura de origem bovina e suna,
com clientes nos Estados Unidos e no mercado internacional. Os
produtos preparados pela JBS USA incluem carnes resfriadas em
cortes com padres industriais especcos.
A JBS USA nos Estados Unidos opera com quatro frigorcos
bovinos, trs de sunos, um de carneiro e uma fbrica de
beneciamento de cortes bovinos e sunos. Na Austrlia opera com
quatro frigorcos para bovinos.
A JBS USA divide a sua operao em trs grandes segmentos: Swift
Beef, operando o negcio de origem bovina no mercado norte
americano; Swift Pork, operando o negcio de origem suna no
mercado norte americano; JBS Austrlia, que opera o negcio de
origem bovina na Austrlia.
A JBS USA na Austrlia opera quatro connamentos de bovinos,
sendo que todos a base de alimentao com gros, para suprir os
seus frigorcos.
c) Reorganizaes societrias - Incorporao
Em 1 de maro de 2006 a JBS S.A., foi incorporada pela Friboi
Ltda., sendo transferida para esta os bens, direitos e obrigaes de
titularidade da JBS S.A., que era controladora indireta de 100%
do capital social da Swift-Armour. O capital social da Friboi Ltda.,
em razo da incorporao da JBS S.A., que era de R$ 7.500
aumentou em R$ 508.135, passando a ser de R$ 515.635,
representado por 515.635.240 cotas.

O acervo lquido incorporado, com base em Laudo Contbil emitido
por peritos, sumarizado a seguir:
R$
Ativo corrente 557.997
Passivo corrente (64.519)
493.478
Ativo permanente 775.040
Exigvel a longo prazo (760.383)
14.657
Acervo lquido 508.135
Em 2 de maro de 2006, a totalidade dos scios cotistas da Friboi
Ltda., aprovou transformar a empresa em uma sociedade por aes,
mudar a denominao social e substituir a totalidade das cotas por
aes. A nova denominao social passou a ser JBS S.A., com
capital social de R$ 515.635 representado por 515.635.240
aes ordinrias, nominativas e sem valor nominal.
Ciso parcial
Em 31 dezembro de 2006 a Assemblia Geral Extraordinria,
amparada na Lei 6404/76 em seu artigo 229, deliberou a ciso
parcial da Companhia. Dessa forma, o acervo lquido transferido
para a empresa ligada Flora Produtos de Higiene e Limpeza S.A.,
est sumarizado a seguir:
Ativo
Ativo circulante
Disponibilidades 43
Aplicaes nanceiras 439.631
Contas a receber de clientes 53.348
Estoques 33.842
Impostos a recuperar 4.323
Outros ativos circulantes 9.016
540.203
No circulante
Crditos com empresas ligadas 265.882
Depsitos, caues e outros 461
Outros investimentos 6.516
Imobilizado lquido 278.600
Diferido 5.694
557.153
Total do ativo 1.097.356
Passivo e patrimnio lquido
Passivo circulante
Fornecedores 16.589
Emprstimos e nanciamentos 7.522
Obrigaes scais, trabalhistas e sociais 8.187
Outros passivos circulantes 28.045
60.343
No circulante
Emprstimos e nanciamentos 11.669
Outros passivos no circulantes 364
12.033
Total circulante e no circulante 72.376
Acervo lquido transferido 1.024.980
Total do passivo e do acervo lquido 1.097.356
O resultado auferido pela diviso de higiene e limpeza no exerccio
ndo em 31 de dezembro de 2006, sumarizado a seguir:
Vendas lquidas 334.130
Custo dos produtos vendidos (211.363)
Lucro bruto 122.767
Despesas operacionais:
Administrativas e gerais (48.872)
Com vendas (90.523)
Prejuzo operacional, exceto resultado
nanceiro (16.628)
02. Apresentao e elaborao das
demonstraes contbeis
A
s demonstraes contbeis individuais e consolidadas foram
elaboradas de acordo com as prticas contbeis adotadas
no Brasil e esto apresentadas de acordo com o Pronunciamento
emitido pelo Ibracon sobre a apresentao e divulgao de
demonstraes contbeis NPC 27 e Deliberao CVM n 488,
ambas de 3 de outubro de 2005.
As prticas contbeis adotadas na Argentina e aplicadas na Swift
Armour e suas subsidirias so semelhantes s adotadas no Brasil.
As prticas contbeis adotadas pela Tupman e Astro, subsidirias
da SB Holdings, localizadas nos Estados Unidos da Amrica, no
diferem de forma signicativa das prticas adotadas no Brasil.
As prticas contbeis adotadas nos Estados Unidos da Amrica
pela JBS USA apresentam as seguintes diferenas em relao s
prticas adotadas no Brasil e que so devidamente ajustadas:
Os estoques de produtos acabados so avaliados a preo de s
mercado e so ajustados para o mtodo de custo mdio de
produo;
O ativo permanente inclui R$ 664.368, relativos a ativos s
intangveis, fundo de comrcio e mais valia de ativos xos
calculados quando da compra pela Companhia (purchasing
accounting) que foram ajustados reduzindo o valor do
patrimnio lquido;
A atualizao de contratos de hedge em aberto diferida no s
balano patrimonial no grupo do patrimnio lquido e foi ajustada
para a demonstrao de resultado.
03. Resumo das principais prticas
contbeis
a) Estimativas contbeis
A elaborao das demonstraes contbeis de acordo com as
prticas contbeis adotadas no Brasil requer que a administrao
se utilize de premissas e julgamentos na determinao do valor e
registro de estimativas contbeis. Ativos e passivos signicativos
sujeitos a essas estimativas, incluem a denio de vida til dos
bens do ativo imobilizado, proviso para crditos de liquidao
duvidosa, estoques, imposto de renda diferido ativo, proviso para
contingncias, valorizao de instrumentos derivativos ativos e
passivos. A liquidao das transaes envolvendo essas estimativas
poder resultar em valores diferentes dos estimados, devido a
imprecises inerentes ao processo de sua determinao.
b) Operaes de Swap e opes a receber e a pagar
Registrados ao custo de aquisio, acrescidos dos ganhos e
perdas auferidos at a data do balano (curva de rendimento e/
ou encargos dos papis), ajustados ao valor de mercado, quando
este inferior.
c) Proviso para crditos de liquidao duvidosa
A proviso para crditos de liquidao duvidosa calculada
com base nas perdas avaliadas como provveis, cujo montante
considerado suciente para cobrir eventuais perdas na realizao
das contas a receber.
d)Estoques
Os estoques so registrados ao custo mdio de aquisio, criao ou
produo, que no superam os valores de mercado ou de realizao.
e)Investimentos
Os investimentos em empresas controladas so avaliados pela
equivalncia patrimonial. Os demais investimentos so avaliados ao
custo de aquisio.
f) Imobilizado
O ativo imobilizado demonstrado ao custo histrico de aquisio,
acrescentado de reavaliaes espontneas realizadas em diferentes
datas, para parte signicativa dos bens constantes no imobilizado,
baseada em laudos de empresa especializada.
A depreciao calculada pelo mtodo linear, de acordo com a
vida til econmica estimada, s taxas anuais mencionadas na nota
explicativa 11.
g) Outros ativos circulantes e no circulantes
So demonstrados ao valor de custo ou realizao, incluindo, quando
aplicvel, os rendimentos auferidos at as datas dos balanos.
h) Passivos circulantes e no circulantes
So demonstrados pelos valores conhecidos ou calculveis,
acrescidos, quando aplicvel, dos correspondentes encargos,
variaes monetrias ou cambiais.
i) Ativos e passivos contingentes e obrigaes legais
Os ativos contingentes so reconhecidos somente quando h
garantias reais ou decises judiciais favorveis, transitadas em
julgado. Os ativos contingentes com xitos provveis so apenas
divulgados em nota explicativa.
Os passivos contingentes so provisionados quando as perdas
forem avaliadas como provveis e os montantes envolvidos forem
mensurveis com suciente segurana. Os passivos contingentes
avaliados como perdas possveis so apenas divulgados em nota
explicativa e os passivos contingentes avaliados como perdas
remotas no so provisionados e nem divulgados.
As obrigaes legais so registradas como exigveis,
independentemente da avaliao sobre as probabilidades
de xito, de processos em que a Companhia questionou a
inconstitucionalidade de tributos.
j) Imposto e renda e contribuio social
Impostos correntes
So registrados com base no lucro tributvel, de acordo com a
legislao e alquotas vigentes.
Impostos diferidos
O imposto de renda e contribuio social diferidos passivos so
constitudos sobre as reservas de reavaliao. O imposto de renda
diferido ativo constitudo sobre os saldos de prejuzos scais
e diferenas temporrias e a contribuio social diferida ativa
consituda sobre as diferenas temporrias.
k) Lucro por ao
O lucro por ao apurado com base nas aes em circulao na
data das demonstraes contbeis.
l) Informaes suplementares
Com o objetivo de propiciar informaes adicionais aos usurios
das demonstraes contbeis apresentada, como informao
suplementar, a demonstrao do uxo de caixa, preparada de acordo
com as Normas e Procedimentos Contbeis emitidos pelo Ibracon.
m) Consolidao
Na consolidao das demonstraes contbeis da JBS S.A. e suas
controladas, so eliminadas as participaes entre as empresas
consolidadas, os saldos de contas a receber e a pagar, as receitas
e as despesas entre as empresas. Devido inexistncia de lucros
no realizados em operaes intercompanhias, o patrimnio liquido
da controladora igual ao do consolidado.
As demonstraes contbeis das controladas sediadas no exterior
so elaboradas, originalmente, em moeda local, e para ns de
clculo da equivalncia patrimonial e consolidao, so convertidas
para reais pela taxa cambial correspondente na data do balano
para ativos e passivos, e pela taxa cambial mdia do perodo para
as contas de receitas e despesas. Os ganhos e perdas decorrentes
desta converso so reconhecidos no resultado nanceiro.
As empresas controladas, direta ou indiretamente, includas na
consolidao, so mencionadas na nota 10.
04. Aquisio da Swift Foods Company
(atual JBS USA)
E
m 11 de julho de 2007, a Companhia, por meio de sua
subsidiria integral J&F Acquisition Co., criada com esse m
especco, concluiu a aquisio do controle acionrio da Swift
Foods Company sociedade com sede em Delaware, Estados
Unidos da Amrica, pelo valor de US$ 1.459 milhes, sendo US$
225 milhes pagos a HM Capital Partners LLC, antiga acionista
controladora da Swift, e US$ 1.234 milhes utilizados para a
liquidao de passivos nanceiros da Swift Foods.
Parte substancial do nanciamento dos recursos para aquisio
da Swift Foods pela Companhia oriunda do aumento de capital
aprovado na Assemblia Geral Extraordinria realizada em 29
de junho de 2007 no montante de R$ 1.853.833 mediante a
emisso para subscrio privada de 227.400.000 (duzentos e
vinte e sete milhes e quatrocentas mil) novas aes ordinrias,
nominativas, escriturais e sem valor nominal, em tudo idnticas s
aes j existentes, tendo os mesmos direitos conferidos s demais
aes ordinrias de emisso da Companhia, nos termos do seu
Estatuto Social e da legislao aplicvel. A BNDES Participaes
S.A. - BNDESPAR ( BNDESPAR) subscreveu uma parcela relevante
das novas aes ordinrias representativas do capital social da
Companhia, no montante de R$ 1.160.776, permitindo uma
participao relevante da BNDESPAR nos recursos que foram
captados para a aquisio da referida empresa. A subscrio de
aes de emisso da Companhia por BNDESPAR se deu mediante
a cesso de parcela do direito de preferncia das acionistas J&F e
da ZMF na subscrio dessas novas aes. O restante dos recursos
foi obtido atravs de nova dvida assumida pela Swift Foods no
momento da aquisio.
A concretizao da aquisio da Swift Foods resultou na criao
da maior empresa do mundo no setor de alimentos de protena
de origem bovina e da maior empresa brasileira na indstria de
alimentos, consolidando a Companhia nos mercados nacional e
mundial de carne bovina e tornando-a um importante competidor
no mercado mundial de carne suna. Com isso, a Companhia
passou a ter capacidade de produo e distribuio no Brasil, na
Argentina, nos Estados Unidos da Amrica e na Austrlia, os quatro
principais pases consumidores de carne bovina do mundo. Essa
posio possibilitar Companhia (i) ter acesso aos dois blocos de
barreiras comerciais: Atlntico e Pacco; (ii) diversicar o risco em
relao a barreiras to-sanitrias; e (iii) unicar e fortalecer a marca
Swift globalmente.
Devido a grandeza desse investimento e a sua consolidao nas
demonstraes contbeis consolidadas da Companhia do exerccio
ndo em 31 de dezembro de 2007 com consequente perda de
comparabilidade com as demonstraes de perodos anteriores,
estamos apresentando a seguir balanos patrimoniais e demonstraes
de resultado condensados que permitam uma comparao das
demonstraes contbeis consolidadas antes do investimento na
Swift Foods bem como, apresentar essas demonstraes da prpria
Swift Foods. As demonstraes do resultado da Swift Foods reetem
apenas o resultado a partir de 11 de julho de 2007, que representa o
perodo aps a aquisio pela Companhia.
Balano Patrimonial 2007 2006
JBS e demais
subsidirias ATIVO Consolidado JBS USA Consolidado
Disponibilidades e Aplicaes Financeiras 1.381.703 405.451 976.252 261.071
Contas a receber de clientes 1.236.148 710.793 525.355 692.819
Estoques 1.511.595 732.992 778.603 657.504
Outros ativos circulantes e no circulantes 757.163 114.920 642.243 703.028
Investimentos em controladas 829.975 - 1.715.332 -
Imobilizado 2.536.098 905.125 1.630.973 1.125.218
Outros ativos permanentes 195.523 170.656 24.867 25.197
TOTAL DO ATIVO 8.448.205 3.039.937 6.293.625 3.464.837
PASSIVO E PATRIMNIO LIQUIDO
Fornecedores 1.099.385 683.600 415.785 309.294
Emprstimos e nanciamentos 3.749.636 1.426.524 2.323.112 2.693.615
Outros passivos circulantes e no circulantes 548.752 210.604 338.148 278.474
Participao de minoritrios (4.156) - (4.156) 409
Patrimnio lquido 3.054.588 719.210 3.220.735 183.045
TOTAL DO PASSIVO E PATRIMNIO LIQUIDO 8.448.205 3.039.937 6.293.625 3.464.837
Demonstrao do Resultado 2007 2006
Consolidado JBS USA JBS e demais
subsidirias
"Pro Forma"
Consolidado
Receita operacional lquida 14.141.571 9.249.627 4.891.944 3.967.552
Custo dos produtos vendidos (12.609.093) (8.899.896) (3.709.197) (3.036.673)
LUCRO BRUTO 1.532.478 349.731 1.182.747 930.879
Despesas administrativas, gerais e com vendas (1.062.224) (492.518) (569.706) (452.849)
Resultado nanceiro lquido (403.113) (33.151) (369.962) (204.149)
Resultado de equivalncia patrimonial - - (160.976) -
Demais despesas operacionais (141.935) - (141.935) -
Resultado no operacional 11.206 16.423 (5.217) (2.462)
Imposto de renda e contribuio social (104.903) (1.460) (103.443) (92.282)
Participao minoritria no resultado de controladas 3.459 - 3.459 1.212
LUCRO LQUIDO (PREJUZO) DO PERODO (165.032) (160.976) (165.032) 180.349
VALOR EBITDA 591.061 (101.392) 692.453 564.946
05. Aplicaes nanceiras
06. Contas a receber de clientes
2007 2006 2007 2006
CDB - DI 339.029 135.865 348.472 135.906
Fundos de investimentos 421.534 9.481 446.923 9.481
Certicates of deposits - CD - - - 47.055
Leilo - - 262.599 -
760.563 145.346 1.057.994 192.442
Os Certicados de Depsitos Bancrios - CDB-DI so ps-xados e rendem em mdia 100% do valor da variao do Certicado de Depsito
Internanceiro - CDI. Os fundos de investimentos esto representados por aplicaes em fundos multi mercados, aberto a pblico qualicado.
Aplicaes de leilo pela JBS USA com rendimentos que participam de um processo de leilo onde a taxa de juros reajustada de 7 - 28 dias.
2007 2006 2007 2006
Duplicatas a vencer 427.746 649.222 990.611 676.406
Duplicatas vencidas:
De 1 a 30 dias 7.904 4.524 154.709 4.525
De 31 a 60 dias 4.941 862 71.993 862
De 61 a 90 dias 4.978 8.083 10.513 8.083
Acima de 90 dias 2.497 5.106 17.516 5.106
Proviso para crditos de liquidao duvidosa (3.848) (2.015) (9.194) (2.163)
16.472 16.560 245.537 16.413
444.218 665.782 1.236.148 692.819
A demonstrao individual e consolidada do resultado do exerccio ndo em 31 de dezembro de 2006, apresentada para ns de
comparabilidade, foi elaborada desconsiderando o resultado das operaes da diviso de Higiene e Limpeza em funo da ciso parcial
ocorrida em 31 de dezembro de 2006, conforme descrito na nota explicativa 1. Por esse motivo, a referida demonstrao contbil est sendo
denominada Pro Forma.
As demonstraes contbeis Pro Forma no devem ser tomadas por base para ns de clculo dos dividendos ou para quaisquer outros ns
societrios que no sejam o de proporcionar informaes comparativas sobre o desempenho operacional da Companhia.
07. Estoques
08. Impostos a recuperar
2007 2006 2007 2006
Produtos acabados 513.492 513.607 1.072.732 578.508
Produtos em processo 745 - 71.514 3.739
Matria-prima 55.242 18.286 68.688 40.884
Rebanho bovino - - 171.552 -
Almoxarifado 34.746 32.042 127.109 34.373
604.225 563.935 1.511.595 657.504
2007 2006 2007 2006
ICMS 295.362 220.731 314.924 240.688
IPI 39.920 117.737 97.805 232.056
PIS e COFINS 42.427 55.618 55.623 62.478
IRRF 4.072 54.981 7.485 57.541
IVA - - 38.176 9.066
Outros 1.338 3 13.110 187
383.119 449.070 527.123 602.016
Desmembramento:
Ativo circulante 351.677 424.941 482.918 567.264
Ativo no circulante 31.442 24.129 44.205 34.752
383.119 449.070 527.123 602.016
ICMS
O saldo credor de ICMS a recuperar advm da obteno de
crditos por compras de matrias primas, materiais de embalagem
e secundrios em volume superior aos dbitos gerados nas vendas
locais, uma vez que as exportaes so isentas.
O mencionado saldo credor est em processo de scalizao e
homologao pela Secretria da Fazenda do Estado de So Paulo
e a Companhia tem expectativa de recuperao integral de parte
signicativa nos prximos meses, inclusive do crdito outorgado de
ICMS (compreende a diferena percentual entre a alquota nominal
de escriturao nos livros scais e a taxa efetiva de arrecadao do
ICMS vigente no Estado de origem), o qual vem sendo contestado
pelo Estado de So Paulo. Todavia, o procedimento por ns
adotado est amparado na legislao tributria vigente, conforme
opinio de nossos consultores jurdicos externos e internos.
31 de dezembro de 2007
Contas a
receber
Contas a
pagar
Compras de
mercadorias
Receitas de
vendas
Crditos
Mouran Alimentos Ltda. - - 2.292 10.164 -
JBS Embalagens Metlicas Ltda. 401 2.346 63.559 11.418 69.695
JBS Global Beef Company SU Lda. - - - - (41.626)
Friboi Egypt Company L.L.C 8.667 - - 72.382 -
Friboi (UK) Limited 11.554 - - 44.784 -
Swift Armour Socidad Annima Argentina - 595 6.569 - -
The Tupman Thurlow Co. 25.900 609 - 70.770 -
Global Beef Trading SU Lda. 587 - - 2.527 -
Beef Snacks Brasil Ind.Com.Alimento Ltda 805 84 9 4.890 22.095
Beef Snacks International BV - - - - 10.142
47.914 3.634 72.429 216.935 60.306
Contas a
receber
Contas a
pagar
Compras de
mercadorias
Receitas de
vendas
Crditos
Mouran Alimentos Ltda. 451 68 - - 3.249
JBS Embalagens Metlicas Ltda. 7.822 2.770 25.161 - 103.944
JBS Global Beef Ltd. - - - - (50.360)
Friboi Egypt 41.675 - - 123.310 -
Friboi Investiments Ltd. - - - - 10.690
Friboi UK 13.728 - - 34.433 -
Swift Armour Socidad Annima Argentina - 411 - - -
The Tupman Thurlow Co. - - - 45.401 -
63.676 3.249 25.161 203.144 67.523
09. Transaes com partes relacionadas
A
s transaes com partes relacionadas so representadas
principalmente por operaes de vendas mercantis da
controladora para controladas no exterior, realizadas a preos
e condies normais de mercado e por contratos de mtuo com
empresas controladas e ligadas sobre os quais incidem juros de 1%
ao ms. Os saldos entre partes relacionadas nas contas patrimoniais
e nas contas de resultado so a seguir apresentados:
PIS e COFINS
Refere-se a crdito no cumulativo de PIS e COFINS incidente
sobre as aquisies de matrias primas, materiais de embalagem
e materiais secundrios utilizados nos produtos vendidos no
mercado externo.
IRRF
Corresponde ao imposto de renda retido na fonte sobre aplicaes
nanceiras, realizvel mediante compensao com imposto de
renda a pagar sobre lucros.
GERAL
A Companhia e sua controlada JBS Embalagens, amparadas na
jurisprudncia em decises da Cmara Superior do Conselho de
Contribuintes e por seus assessores jurdicos, registrou a atualizao
monetria com base na SELIC dos seus crditos de PIS, COFINS e
IPI a recuperar no valor de R$ 126.181.
10. Investimentos em controladas
a) Informaes relevantes sobre as controladas
Quantidade
de aes
Participao
percentual
Capital
social
Patrimnio
lquido
Lucro lquido
(prejuzo)
JBS Embalagens Metlicas Ltda. 10.000 99,00% 2 39.844 (1.011)
JBS Global Investments S.A. 23.000 100,00% 40.740 40.908 (6.804)
JBS Holding Internacional. S. A. 535.128 100,00% 535.128 385.831 (95.015)
JBS Global A/S (Dinamarca) 212 100,00% 71.648 108.106 (5.362)
Mouran Alimentos Ltda. 84 70,00% 120 (15.452) (11.595)
JBS USA, Inc. 100 100,00% 880.186 719.210 (160.976)
SB Holdings, Inc 20 100,00% 18 2.751 684
JBS Connamento Ltda. 30.001 100,00% 30.001 30.001 -
Quantidade
de aes
Participao
percentual
Capital
social
Patrimnio
lquido
Lucro lquido
(prejuzo)
JBS Embalagens Metlicas Ltda. 10.000 99,00% 2 40.798 34.213
JBS Global Investments S.A. 19.000 100,00% 40.622 49.038 11.915
JBS Holding Internacional. S. A. 282.010 100,00% 282.010 227.728 (34.012)
JBS Global A/S (Dinamarca) 180 100,00% 9.279 53.355 44.080
Mouran Alimentos Ltda. 84 70,00% 120 (3.857) (3.977)
Beef Snacks do Brasil Ltda. 9.900 99,00% 10 - -
b) Movimentao de investimentos
Saldo em
31.12.06
Adio
(realizao)
Variao
Cambial
Equivalncia
patrimonial
Saldo em
31.12.07
JBS Embalagens Metlicas Ltda. 40.390 58 - (1.002) 39.446
JBS Global Investments S.A. 49.039 7.972 (9.298) (6.804) 40.909
JBS Holding Internacional. S. A. 227.728 253.118 - (95.015) 385.831
JBS Global A/S (Dinamarca) 53.355 64.405 (4.292) (5.362) 108.106
Mouran Alimentos Ltda. (2.700) - - (8.116) (10.816)
Beef Snacks do Brasil Ltda. 10 (10) - - -
JBS USA, Inc. - 1.753.453 (68.792) (160.976) 1.523.685
SB Holdings, Inc - 21.684 (427) 684 21.941
JBS Connamento Ltda. - 30.001 - - 30.001
Transf. para Outros passivos circulantes
(Passivo a descoberto Mouran)
- - - - 10.816
Total 367.822 2.130.681 (82.809) (276.591) 2.149.919
Foi concluida, no terceiro trimestre de 2007, a operao de Joint Venture entre JBS S.A (atravs da controlada direta JBS Global A/S) e Jay Earl
Link (atravs da companhia Link International Meat Products LTD) para operar a companhia Beef Snacks International BV, que passou a controlar
integralmente a Beef Snacks e a Jerky Snacks. Em 31 de dezembro de 2007, o capital social da Beef Snacks International BV de R$ 36.439
mil, sendo que a JBS Global A/S possui 50% do capital ( R$ 18.219 mil).
Controladora Lquido
Taxas mdias anuais
de depreciao Custo Reavaliao
Depreciao
acumulada 2007 2006
Imveis 4% 285.927 116.742 (14.802) 387.867 382.523
Terra nua e terrenos - 104.652 9.352 - 114.004 79.835
Mquinas e equipamentos 10% 223.208 45.032 (38.621) 229.619 211.720
Instalaes 10% 70.686 21.815 (12.887) 79.614 84.804
Equipamentos de informtica 20% 12.917 757 (5.512) 8.162 7.899
Veculos e aeronaves 20% 75.457 460 (40.140) 35.777 34.618
Obras em andamento - 459.809 - - 459.809 85.659
Outros 10 a 20% 18.046 1.541 (6.424) 13.163 12.118
1.250.702 195.699 (118.386) 1.328.015 899.176
c) gio
Na Controladora
Em julho de 2007 a Companhia adquiriu 100% do capital social da Swift Foods Company, a qual passou a se chamar JBS USA, Inc., tendo
apurado um gio no valor de R$ 877.609, fundamentado por expectativa de rentabilidade futura, que ser amortizado no prazo de 5 anos.
Durante o exerccio de 2007 foi amortizado gio no montante de R$ 73.134.
Em janeiro de 2007 a Companhia adquiriu 100% do capital social da SB Holdings, Inc., tendo apurado um gio no valor de R$ 20.881,
fundamentado por expectativa de rentabilidade futura, que ser amortizado no prazo e na extenso das projees que o determinaram, no
superior a 10 anos. Durante o exerccio de 2007 foi amortizado gio no montante de R$1.690.
Conforme descrito na nota 15, a Companhia pretende excluir permanentemente do cmputo dos dividendos a futura amortizao do referido gio.
Em Controlada
Em maio de 2007 a Swift Armour adquiriu 100% do capital social da Consignaciones Rurales S.A e da Argenvases S.A.I.C, tendo apurado
um gio no valor de R$ 6.338, fundamentado por diferena de valor de mercado dos bens adquiridos, que ser amortizado acompanhando
proporcionalmente a depreciao ou baixa desses bens. Durante o exerccio de 2007 foi amortizado gio no montante de R$ 29.
11. Imobilizado
Consolidado Lquido
Taxas mdias
anuais de
depreciao Custo Reavaliao
Depreciao
acumulada 2007 2006
Imveis 3 a 20% 819.653 116.742 (73.442) 862.953 493.743
Terra nua e terrenos - 226.793 9.352 (2.919) 233.226 83.060
Mquinas e equipamentos 8 a 10% 940.101 45.032 (293.598) 691.535 306.255
Instalaes 10% 75.512 21.815 (12.934) 84.393 84.816
Equipamentos de informtica 20 a 100% 54.417 757 (14.779) 40.395 8.041
Veculos e aeronaves 14 a 50% 94.860 460 (41.277) 54.043 34.972
Obras em andamento - 526.422 - - 526.422 96.052
Outros 10 a 100% 54.335 1.541 (12.745) 43.131 18.279
2.792.093 195.699 (451.694) 2.536.098 1.125.218
Nos ltimos trs anos foi efetuada reavaliao espontnea de bens do ativo imobilizado, suportada por laudo emitido pela empresa
especializada SETAPE Servios Tcnicos de Avaliaes do Patrimnio e Engenharia S/C Ltda., de grande parte das unidades industriais
acrescida aos saldos do ativo imobilizado em contrapartida rubrica reserva de reavaliao e da proviso para imposto de renda e
contribuio social diferidos. Em 31 de dezembro de 2007, o saldo de reavaliaes no ativo imobilizado de R$ 195.699, a reserva de
reavaliao de R$ 123.343 e a proviso para imposto de renda e contribuio social de R$ 59.642. Para as reavaliaes acrescidas ao
ativo imobilizado foi registrada depreciao acumulada no montante de R$ 12.714.
12. Fornecedores
2007 2006 2007 2006
Commodities 242.688 188.963 588.230 214.248
Materiais e servios 109.078 77.736 470.830 84.618
Produtos acabados 3.744 4.761 40.325 10.428
355.510 271.460 1.099.385 309.294
13. Emprstimos e nanciamentos
a) Controladora
Modalidade Taxa mdia anual de juros e comisses 2007 2006
Financiamentos para aquisio de
ativo imobilizado:
FINAME / FINEM - Financiamentos a empreendimentos TJLP, cesta de moedas do BNDES e juros de 3,0% 227.561 250.785
FINIMP - Financiamento importao Variao cambial e juros de 5,0% - 12.492
227.561 263.277
Emprstimos para capital de giro:
ACC - Adiantamentos de Contratos de cmbio Variao cambial e juros Libor, mais 0,20% 288.761 -
EXIM - Fomento exportao TJLP e juros de 3% 426.891 550.452
Euro Bonds Variao cambial e juros de 9,375% 494.338 597.224
Pr-pagamento Variao cambial e juros Libor, mais 1,0% 167.810 275.046
144-A Variao cambial e juros de 10,5% 554.638 673.256
NCE / COMPROR CDI e juros de 2,0% 40.289 229.198
Outros - 30.652
1.972.727 2.355.828
Total 2.200.288 2.619.105
Desmembramento
Passivo circulante 858.975 579.128
Passivo no circulante 1.341.313 2.039.977
2.200.288 2.619.105
O vencimento do exigvel a longo prazo compe-se:
2008 - 507.165
2009 180.121 179.535
2010 105.744 105.747
2011 519.210 606.130
2012 4.848 -
2016 531.390 641.400
1.341.313 2.039.977
b) Consolidado
Modalidade Taxa mdia anual de juros e comisses 2007 2006
Financiamentos para aquisio de ativo imobilizado:
FINAME / FINEM - Financiamentos a empreendimentos TJLP, cesta de moedas do BNDES e juros de 3,0% 227.561 250.785
FINIMP - Financiamento importao Variao cambial e juros de 5,0% - 12.492
Notas de pagamento Juros Libor, mais 1,75% 19.325 -
246.886 263.277
Emprstimos para capital de giro:
ACC - Adiantamentos de Contratos de cmbio Variao cambial e juros Libor, mais 0,20% 340.879 -
EXIM - Fomento exportao TJLP e juros de 3% 426.891 550.452
Euro Bonds Variao cambial e juros de 9,375% 494.338 597.224
Capital de giro Juros Libor, mais 1,1% 1.402.371 74.510
Pr-pagamento Variao cambial e juros Libor, mais 1,0% 167.810 275.046
144-A Variao cambial e juros de 10,5% 554.638 673.256
NCE / COMPROR CDI e juros de 2,0% 68.793 229.198
Swift Australia - Capital de giro BBSY + 0.35% 47.030 -
Outros - 30.652
3.502.750 2.430.338
Total 3.749.636 2.693.615
Desmembramento:
Passivo circulante 2.384.836 653.638
Passivo no circulante 1.364.800 2.039.977
3.749.636 2.693.615
O vencimento do exigvel a longo prazo compe-se:
2008 - 507.165
2009 184.379 179.535
2010 110.004 105.747
2011 520.840 606.130
2012 6.477 -
2016 543.100 641.400
1.364.800 2.039.977
ACC Adiantamentos de Contratos de Cmbio, so crditos
tomados junto s instituies nanceiras pela JBS S.A. e representam
US$ 192.446 em 31 de dezembro de 2007, destinados a
nanciamento das operaes de exportaes da Companhia.
Os pr-pagamentos representam US$ 94.738 em 31 de dezembro
de 2007 (US$ 128.646 em 31 de dezembro de 2006).
NCE/COMPROR Trata-se de Notas de Crdito Exportao
associada modalidade COMPROR para nanciamentos de
compra de matrias-primas destinadas produo de produtos
exportveis.
EURO BONDS - Em 26 de janeiro e 8 de fevereiro de 2006, a
Companhia efetuou uma captao de US$ 200 milhes, com
uma subseqente reabertura de US$ 75 milhes, totalizando
US$ 275 milhes, por meio de Euro Bonds, com prazo de cinco
anos para pagamento e coupon de 9,375% ao ano. A operao
est garantida pela Companhia e pela sua controladora, J&F
Participaes S.A.
144-A Em 28 de julho de 2006, a Companhia realizou uma
captao de US$ 300 milhes, atravs da emisso de notas sob
a regra 144-A, no mercado internacional, com prazo de 10 anos
para pagamento e coupon de 10,5% ao ano. A operao est
garantida pela Companhia.
Capital de giro Representado principalmente por emprstimos
de US$ 750 milhes da JBS USA tomados quando da aquisio
pela Companhia, sobre os quais incidem juros Libor mais 1,1%, em
mdia, ao ano. Esses emprstimos que venceriam em julho de 2008
foram renanciados por prazos de 3 a 5 anos.
14. Obrigaes scais, trabalhistas e sociais
15. Dividendos declarados
2007 2006 2007 2006
Salrios e encargos sociais 35.638 40.333 55.577 49.799
Provises para frias, 13 e encargos previdencirios 27.125 21.835 94.502 21.943
Imposto de renda a recolher 8.727 - 8.727 -
Contribuio social a recolher 2.298 - 2.298 -
ICMS a recolher 17.689 9.786 17.697 9.939
Outros 1.681 1.188 24.812 2.766
93.158 73.142 203.613 84.447
2007 2006 2007 2006
Dividendos declarados 17.465 - 17.465 -
17.465 - 17.465 -
A Companhia considerando que tem gerado EBITDA positivo, deliberou em reunio do Conselho de Administrao ocorrida em 1 de novembro
de 2007 que para o cmputo dos dividendos sejam excludos permanentemente, as perdas cambiais dos investimentos permanentes mantidos
em moeda estrangeira e o valor da amortizao do gio apurado na aquisio dos investimentos efetuados na JBS USA e SB Holdings includas
no resultado. A deciso do Conselho de Administrao ser oportunamente apreciada e votada em Assemblia Geral Extraordinria.
Dessa forma, apesar de apresentar resultado negativo no exerccio de 2007, a Companhia declarou dividendos de R$ 17.465 a serem
submetidos Assemblia Geral dos Acionistas para aprovao conforme clculo demonstrado a seguir:
Prejuzo do exerccio (165.032)
Variao cambial negativa de investimentos (Direta) 82.809
Variao cambial negativa de investimentos (Indireta) 77.221
Amortizao do gio de investimentos - JBS USA 73.134
Amortizao do gio de investimentos - SB Holdings 1.690
Base ajustada para clculo dos dividendos 69.822
Dividendos declarados (25%) 17.465
16. Contingncias
A Companhia e suas controladas so parte em diversos processos oriundos do curso normal dos seus negcios, para os quais foram constitudas
provises baseadas na estimativa de seus consultores legais. As principais informaes desses processos em 31 de Dezembro de 2007, esto
assim representadas:
Processos tributrios
a) ICMS
A Companhia vem sofrendo diversas autuaes pelo Fisco do
Estado de So Paulo em virtude de aproveitamento de crditos de
ICMS em compras de gado de Estados que concedem incentivos
scais sem respaldo em Convnio, ou seja, incentivos concedidos
sem autorizao dos demais Estados. Nessas situaes, o Estado de
So Paulo admite os crditos de ICMS apenas at o limite do ICMS
que foi pago no Estado de origem da mercadoria. O montante total
envolvido nessas autuaes de aproximadamente R$ 23.000. A
Companhia contestou administrativamente essas autuaes e, alm
Processos Nmero de aes Valor provisionado Valor provisionado
Trabalhistas 1.023 4.563 6.886
Cveis 702 11.702 15.765
Fiscais e previdencirias 186 29.714 33.030
Total 1.911 45.979 55.681
disso, props aes judiciais que tm como objetivo obrigar os
Estados que concedem os incentivos a ressarci-la, caso as autuaes
sejam mantidas. A Administrao acredita, com base em parecer de
seus consultores legais, que ir prevalecer seus argumentos na maior
parte desses procedimentos, razo pela qual constituiu proviso no
montante de R$ 826.
b) PIS / COFINS
A Companhia discute em processo administrativo, a incidncia de
PIS e COFINS, relativa ao alargamento de sua base de clculo sobre
receitas no operacionais, totalizando um valor de R$ 6.969. Baseada
na avaliao dos seus consultores legais e de recentes decises do STF,
a Administrao constituiu uma proviso de R$ 3.793.
c) CSLL
A Companhia autora de ao judicial que objetiva autorizar a
no incluir o lucro auferido nas exportaes na base de clculo da
CSLL. O fundamento dessa ao o fato de a Constituio Federal
ter sido alterada para desonerar as exportaes da incidncia
de contribuies federais. Considerando que a Receita Federal
no admite que essa desonerao se estenda CSLL, a questo
foi levada ao Judicirio. A Administrao acredita, com base na
opinio de seus consultores legais, que obter xito nessa demanda.
Contudo, conservadoramente, a partir de 2006, vem adotando o
procedimento de incluir o lucro auferido nas exportaes na base de
clculo da CSLL e mantm proviso no montante de R$ 15.807 por
conta de procedimento diferente utilizado em anos anteriores.
d) INSS
Contribuies Sociais Novo Funrural. Em janeiro de 2001 a
Companhia impetrou Mandado de Segurana para suspender
a exigibilidade da reteno e repasse do Novo Funrural. Foi
prolatada sentena favorvel a qual desobrigou a Companhia
reteno e ao recolhimento da contribuio devida. O
processo aguarda deciso do Tribunal Regional Federal da
Terceira Regio. Para evitar o instituto da decadncia e perder
o direito de exigir a contribuio ao Novo Funrural, o INSS
lanou noticaes scais de lanamento de dbito, referente ao
perodo de janeiro de 1999 a dezembro de 2003, no montante
arbitrado de R$ 69.194. A Companhia apresentou defesa nestes
processos administrativos informando que no recolhe o valor
em virtude de sentena judicial favorvel, por isto os processos
administrativos encontram-se suspensos at deciso nal do
Mandado de Segurana.
Esta matria est sendo discutida no Supremo Tribunal Federal,
em uma ao proposta por empresa cuja atividade similar
da Companhia, cujo julgamento j demonstra um placar
de cinco votos em favor da inconstitucionalidade dentre os
dez votos possveis e at o momento nenhum Ministro votou
contrariamente. Por este motivo, e com base em pareceres de
consultores legais, e juristas renomados, a Companhia entende
que a probabilidade de perda remota, razo pela qual a
Administrao no constitui proviso para esta contingncia.
Atualmente, a Companhia no recolhe nem deposita qualquer
valor referente contribuio ao Novo Funrural. Baseado
na opinio dos assessores jurdicos e fundamentada em
jurisprudncia, favorvel do STF, em caso semelhante, a
Administrao acredita que prevalecero seus fundamentos e
nenhuma proviso foi registrada para esta contingncia.
Contribuies Previdencirias-Terceiras Entidades. O INSS efetuou
lanamento scal para a cobrana de contribuies destinadas a
terceiras entidades, em razo do erro no enquadramento no cdigo
do Fundo de Previdncia e Assistncia Social. O valor envolvido no
processo administrativo de aproximadamente R$ 11.000. Com
base em pareceres de consultores legais, a Administrao entende
que a probabilidade de perda remota, razo pela qual no
constituiu proviso para esta contingncia.
e) Outros processos tributrios
A Companhia parte em outros 100 processos tributrios, onde
as contingncias individualmente no apresentam relevncia
no contexto da Companhia. Destacamos, que as consideradas
com risco de perda provvel esto devidamente provisionadas,
totalizando R$ 9.288.
Processos trabalhistas
Em 31 de dezembro de 2007, a Companhia era parte em (i) 887
aes de natureza trabalhista e 136 autos de infrao lavrados
pelas Delegacias Regionais do Trabalho envolvendo o valor total
em discusso de R$ 21.726; e (ii) 2 procedimentos instaurados
pelo Ministrio Pblico do Trabalho, envolvendo o valor total em
discusso de R$ 258. Com base na avaliao de risco feita
pelos consultores legais, a Companhia registrou provises no
montante de R$ 4.562 relativas a tais processos para fazer frente
a eventuais resultados adversos nos processo em que parte, j
includos os encargos previdencirios devidos pelo empregado e
pela Companhia. Os pleitos, em sua maioria, esto relacionados a
aes ingressadas por ex-empregados das plantas da Companhia e
os principais pedidos dizem respeito ao pagamento de horas extras
e de adicional de insalubridade.
Aproximadamente 8% do valor envolvido em contencioso
trabalhista de que a Companhia parte diz respeito a
reclamaes trabalhistas apresentadas por empregados de
empresas que prestam servios terceirizados. Nos termos da lei
trabalhista brasileira, a Companhia subsidiariamente responsvel
pela observncia dos direitos trabalhistas dos empregados de seus
prestadores de servios terceirizados.
Processos cveis
a) Imvel em Araputanga
Em 2001 a Companhia, por sua antecessora, adquiriu da empresa
Frigorco Araputanga S/A um Imvel e Instalaes Industriais
localizado em Araputanga/MT, atravs de Compromisso de
Compra e Venda. Raticando o negcio e dando quitao total e
irrevogvel do preo ajustado, foram lavradas as Escrituras Pblicas
de Compra e Venda.
O Frigorco Araputanga S/A era benecirio de incentivos scais
(projeto SUDAM) e o imvel era garantia utuante. Por isto se fazia
necessria a anuncia da SUDAM para o Registro das Escrituras.
Em junho de 2004, o Frigorco Araputanga S/A ajuizou Ao
Declaratria no Foro da Comarca de Araputanga/MT, alegando
que a Companhia no havia pago o preo, bem como no havia
obtido a anuncia da referida autarquia, requerendo a ineccia
do Contrato e a Anulao das Escrituras Pblicas. Em deciso
transitada em julgado o TJ/MT julgou a venda vlida e ecaz. O
processo foi remetido Vara Federal de Cceres, distribudo sob
o n 2005.36.01.001618-8, em razo do interesse da Unio na
lide. A Companhia obteve a anuncia da UGFIN, sucessora da
SUDAM, conforme deciso da 5 Turma do TRF da 1 Regio (Proc.
Ns 2006.01.00.024584-7), obtendo assim o efetivo registro das
Escrituras de Compra e Venda.
Atualmente, o processo est aguardando manifesto do perito sobre
a impugnao do Frigoara, referente ao laudo pericial que foi
favorvel Companhia, que aps avaliar os pagamentos realizados
pela Agropecuria Friboi concluiu que 98,5% dos valores devidos
foram efetivamente pagos. O agravo 2006.01.00.024584-7 foi
julgado favoravelmente a Companhia, na medida em que o TRF
da 1 regio declarou vlidas as escrituras de compra e venda
do imvel objeto da discusso. Baseada na opinio de seus
assessores legais e fundamentada em jurisprudncia favorvel do
Supremo Tribunal Federal e da doutrina brasileira sobre esta espcie
de processo, a Administrao acredita que prevalecero seus
argumentos e nenhuma proviso foi registrada.
b) Indenizao pelo Uso da Marca
Ainda decorrente do entrave em Araputanga/MT, a Vendedora
distribuiu, na Comarca de Araputanga/MT, Ao de Indenizao
por Uso Indevido de Marca Registrada, sob a premissa da Friboi
Ltda estar utilizando a Marca Frigoara sem a sua autorizao.
O valor exorbitante atribudo causa deriva de um Laudo de
Avaliao obtido pelo Frigorco Araputanga S/A que avalia a
Marca em R$ 315.000, assim exige uma indenizao por Danos
Morais de R$ 100.000 e ressarcimento no importe de R$ 26.938.
Em defesa, a Companhia preliminarrmente alegou litispendncia
e continncia, tendo em vista que os pedidos esto relacionados
com o processo principal, onde se discute a propriedade do
Frigorco, no mrito, demonstrou que a marca foi utilizada
somente por determinado perodo, com autorizao contratual
e atendendo pedido do Frigoara que necessitava comprovar
SUDAM que os investimentos estavam sendo devidamente utilizados
e para conseguir a obteno da Anuncia ou do Certicado de
Empreendimento Implantado.
Ainda em defesa, fora aduzido que, caso seja devido algum
tipo de indenizao, esta seria dimensionada com relao ao
percentual de venda de produtos da marca, conforme disciplina o
artigo 208 da Lei de Propriedade Intelectual. Quase a totalidade
dos produtos fabricados eram comercializados com a marca Friboi,
j com a marca Frigoara era produzido somente carne moda em
nma quantidade. Posto isto, a Companhia entende que o risco
econmico remoto e o provisionou em R$ 600.
O Juiz da Comarca de Araputanga suspendeu o processo e
posteriormente determinou sua remessa Justia Federal de Cceres,
onde foi distribudo em 17 de janeiro de 2007. Atualmente, o Juzo
Federal de Cceres intimou as partes a se manifestarem a respeito
da redistribuio quele Juzo e determinou a reunio do processo
Ao Declaratria onde se discute a propriedade do Frigorco
localizado em Araputanga/MT. Aps, a Unio ser intimada a
manifestar sobre possvel interesse na causa. Baseada na opinio
de seus assessores legais e fundamentada em jurisprudncia
favorvel do Supremo Tribunal Federal, do Superior Tribunal de
Justia e da doutrina brasileira sobre esta espcie de processo, a
Administrao acredita que prevalecero seus argumentos.
c) Conselho Administrativo de Defesa Econmica - CADE
A Secretaria de Direito Econmico SDE, no ano de 2005, iniciou
um procedimento de investigao de diversos frigorcos, dentre
eles a Friboi Ltda., atual JBS S.A, decorrente de requerimento
efetuado pela Confederao da Agricultura e Pecuria do Brasil
CNA- acusando os investigados da prtica de cartel consistente
na utilizao de tabela padronizada de desconto no valor de
compra de carcaa de boi que no apresentem caractersticas
pr-estabelecidas que justicassem o pagamento do valor integral.
Esse procedimento culminou com a remessa dos autos ao CADE,
pendente de julgamento, com a recomendao da SDE da
aplicao de multa para diversos dos frigorcos investigados,
incluindo a Companhia.
Em 28 de novembro de 2007, o CADE rmou o Termo de
Compromisso de Cessao de Condutas - TCC com a empresa
JBS S.A, suspendendo-se, pois, o processo administrativo em
comento. O TCC rmado pela Companhia prev a realizao
de um programa de preveno de condutas anticompetitivase o
recolhimento de uma contribuio pecuniria de R$ 13.769 ao
Fundo de Defesa dos Direitos Difusos - FDD.
d) Outros
A Companhia est envolvida em outros processos decorrentes,
principalmente, de acidentes de trabalho onde se pleiteiam
indenizaes baseadas nos salrios dos acidentados. Na avaliao
dos assessores jurdicos e da Administrao, a expectativa de perda
em 31 de dezembro de 2007 de R$ 11.101.
17. Imposto de renda e contribuio social
S
o registrados com base no lucro tributvel de acordo com
a legislao e alquotas vigentes. O imposto de renda e
a contribuio social diferidos ativos so reconhecidos sobre
as diferenas temporrias. O imposto de renda e contribuio
social diferidos passivos foram registrados sobre as reservas de
reavaliao constitudas pela Companhia.
a) Reconciliao da despesa de imposto de renda e
contribuio social
2007 2006 2007 2006
Resultado contbil antes da proviso para imposto de renda e
contribuio social
(63.440) 205.212 (63.588) 211.181
Adies (Excluses) liquidas:
Diferenas permanentes (substancialmente: equivalncia
patrimonial e variao cambial de investimentos)
362.311 (68.865) 373.945 (53.717)
Diferenas temporrias 590 47.207 6.307 57.301
Base de clculo do imposto de renda e contribuio social 299.461 183.554 316.664 214.765
Imposto de renda e contribuio social correntes - 34% (101.793) (62.384) (107.104) (72.997)
Diferenas temporrias (590) (47.207) (6.307) (57.301)
Imposto de renda e contribuio social diferidos - 34% 201 16.050 2.201 19.482
b) Composio do saldo de imposto de renda e contribuio social diferidos no balano patrimonial
2007 2006 2007 2006
Ativo:
Sobre proviso para contingncias
Do exerccio s 201 16.050 2.201 19.482
De exerccios anteriores s 16.050 - 21.557 4.010
16.251 16.050 23.758 23.492
Passivo:
Sobre reserva de reavaliao 59.642 62.665 99.755 62.665
59.642 62.665 99.755 62.665
A Companhia e suas controladas apresentam histrico de gerao de lucros tributveis futuros e estima recuperar os crditos tributrios num prazo
de at oito anos em funo da expectativa de desfecho das causas geradoras das contingncias, conforme demonstrado a seguir:
2007 2006 2007 2006
2008 398 394 2.278 2.254
2009 398 394 2.278 2.254
2010 398 394 2.278 2.255
2011 398 394 2.278 2.255
2012 a 2014 14.659 14.474 14.646 14.474
16.251 16.050 23.758 23.492
18. Patrimnio lquido
a) Capital social
Atravs da Assemblia Geral Extraordinria realizada em 2 de
janeiro de 2007, foi aprovada a reforma do Estatuto Social
e o desdobramento das 52.523.990 aes existentes em
350.000.000 de aes ordinrias e sem valor nominal. Atravs
da Assemblia Geral Extraordinria realizada em 7 de maro
de 2007, foi aprovada nova reforma do Estatuto Social e o
desdobramento dessas 350.000.000 de aes em 700.000.000.
Em 28 de maro de 2007, a Companhia aumentou o Capital
Social atravs de oferta pblica de distribuio primria de
150.000.000 de aes ordinrias, nominativas, escriturais e sem
valor nominal, ao preo de R$ 8,00 por ao, sendo a importncia
de R$ 39.224 destinada a formao do capital social e a
diferena, no montante de R$ 1.160.776, destinada a formao
de reserva de capital.
Atravs da Assemblia Geral Extraordinria realizada em
29 de junho de 2007 foi aprovada a subscrio privada de
227.400.000 de novas aes ordinrias, nominativas, escriturais
e sem valor nominal ao preo de R$ 8,1523 por ao, que
corresponde a R$ 1.853.833 gerando uma reserva de capital de
R$ 207. A BNDES Participaes S.A. - BNDESPAR ( BNDESPAR)
subscreveu uma parcela relevante das novas aes ordinrias
representativas do capital social da Companhia. A subscrio de
aes de emisso da Companhia por BNDESPAR se deu mediante
a cesso de parcela do direito de preferncia das acionistas J&F e
da ZMF na subscrio dessas novas aes.
O Capital Social, subscrito e integralizado em 31 de dezembro de
2007 representado por 1.077.400.000 de aes ordinrias,
sem valor nominal.
A Companhia est autorizada a aumentar o seu capital social em
at mais 50.000.000 de aes ordinrias, nominativas, escriturais
e sem valor nominal.
b) Reservas estatutrias
Legal
Constituda base de 5% do lucro lquido do exerccio.
Para expanso
Constituda base do saldo remanescente do lucro lquido aps
a destinaes para constituio da reserva legal e distribuio de
dividendos, que ter por nalidade nanciar a aplicao em ativos
operacionais.
c) Reserva de reavaliao
Referente reavaliao de bens do ativo imobilizado. A reserva
de reavaliao transferida para lucros acumulados na proporo
da realizao dos bens reavaliados que se d por depreciao,
alienao ou baixa.
d) Dividendos
Sero distribudos dividendos obrigatrios no inferiores, em cada
exerccio, a 25% do lucro lquido anual ajustado, na forma prevista
pelo artigo 202 da Lei 6.404/76.
19. Resultado nanceiro lquido
2007 2006 2007 2006
Resultado de variaes cambiais ativas e passivas 87.544 (71.699) 14.506 (72.645)
Resultado nanceiro com derivativos (180.877) 141.331 (180.678) 139.432
Juros Passivos (220.422) (253.257) (283.681) (261.652)
Juros Ativos 68.041 53.130 85.102 53.211
Impostos, contribuies, tarifas e outros (30.569) (148.802) (38.362) (105.491)
(276.283) (279.297) (403.113) (247.145)
O resultado nanceiro do exerccio ndo em 31 de dezembro de 2007 est afetado negativamente pela expressiva variao cambial dos
investimentos permanentes em moeda estrangeira, principalmente em decorrncia da forte desvalorizao do dlar norte americano e do
peso argentino frente ao real. O impacto dessa variao cambial no resultado nanceiro da Companhia de R$ 82.809 (R$ 160.030 no
Consolidado) e que no afetou o EBITDA.
20. Despesas extraordinrias
2007 2006 2007 2006
Despesa com abertura de capital 53.313 - 53.313 -
Acordo CADE 13.769 - 13.769 -
67.082 - 67.082 -
Referem-se a despesas no recorrentes incorridas no exerccio de 2007, com a abertura de capital e colocao de aes no Novo Mercado e
contribuio pecuniria ao CADE, conforme detalhado na nota explicativa 16.
21. Remunerao dos administradores
O
valor agregado das remuneraes recebidas pelos
administradores da Companhia, por servios nas respectivas
reas de competncia, nos exerccios ndos em 31 de dezembro
de 2007 e 2006 foi de: R$ 3.000 e R$ 5.180, respectivamente.
22. Cobertura de seguros (No auditado)

poltica da Companhia manter cobertura de seguros para os bens
do ativo imobilizado e dos estoques sujeitos a riscos por montantes
considerados sucientes para cobrir eventuais sinistros de acordo com
a sua natureza. Em decorrncia dos ativos segurados estarem multi-
localizados, a Companhia contrata seguro com o conceito de perda
mxima possvel por unidade operacional. Os principais eventos
segurados so: incndio; inundao e desmoronamento.
Em 31 de dezembro de 2007 o limite mximo individual de cobertura
era R$ 99.000. Esta cobertura engloba todos os tipos de sinistros.
Para a controlada indireta Swift-Armour, localizada na Repblica
Argentina, a cobertura de seguro tem as mesmas caractersticas
acima descritas, porm com o limite mximo de indenizao para
31 de dezembro de 2007 de US$ 65 milhes (equivalente a R$
115.000 em 31 de dezembro de 2007).
Para a controlada indireta JBS USA, localizada nos Estados
Unidos, a cobertura de seguro tem as mesmas caractersticas acima
descritas, porm com o limite mximo de indenizao para 31
de dezembro de 2007 de US$ 295 milhes (equivalente a R$
523.000 em 31 de dezembro de 2007).
23. Gerenciamento de riscos e instrumentos
nanceiros
A
s operaes da Companhia esto expostas a riscos de
mercado, principalmente com relao s variaes de taxas
de cmbio, risco de crditos, taxas de juros e preos na compra
de gado. Esses riscos so administrados pela Tesouraria, rea
responsvel pela gesto de riscos por meio de sistema de clculo
estatstico de VAR - Value at Risk, e monitorados permanentemente
pelo comit nanceiro e por executivos nanceiros da Companhia,
que tm sob sua responsabilidade a denio da estratgia da
Administrao na gesto desses riscos, determinando os limites de
posio e exposio.
a) Riscos de taxas de cmbio e juros
O risco de variao cambial e taxas de juros sobre os emprstimos,
nanciamentos, aplicaes nanceiras, contas a receber em
moedas estrangeiras decorrentes de exportaes e outras
obrigaes eventuais, denominadas em moeda estrangeira, so
protegidos individualmente, por instrumentos nanceiros derivativos,
tais como contratos de troca de moeda - swap (Dlar para CDI),
contratos de troca de taxas (Libor para taxas pr ou vice-versa
ou CDI) e contratos de mercado futuro em Bolsa de Valores, e
contratos a termo de moedas - forwards.Os valores nominais
destes contratos no so registrados nas demonstraes nanceiras.
Os resultados das operaes de balco no mercado futuro de
moeda, realizados e no liquidados nanceiramente e os ajustes
dirios de posio de contratos futuros de moeda na Bolsa de
Mercadorias e Futuros - BM&F, em 31 de dezembro de 2007,
esto registrados nas demonstraes nanceiras, respectivamente,
nas rubricas Valores a receber de contratos futuros e Valores a
pagar de contratos futuros.
b) Riscos de crditos
A Companhia potencialmente sujeita a risco de crditos
relacionados com as contas a receber de clientes, que minimizado
com a pulverizao da carteira de clientes, uma vez que no possui
clientes ou grupo empresarial, representando mais de 10% do
faturamento consolidado, e na concesso de crditos aos clientes,
com bons ndices nanceiros e operacionais.
c) Riscos de preos na compra de gado
O ramo de atuao da Companhia est exposto volatilidade dos
preos do gado, cuja variao resulta de fatores fora do controle da
administrao, tais como fatores climticos, volume da oferta, custos
de transporte, polticas agropecurias e outros. A Companhia, de
acordo com sua poltica de estoque, mantm sua estratgia de
gesto de risco, atuando no controle fsico, que inclui compras
antecipadas, aliadas com operaes no mercado futuro.
d) Valores estimados de mercado
Os ativos e passivos nanceiros esto representados nas
demonstraes contbeis pelos valores de custo e respectivas
apropriaes de receitas e despesas, e esto contabilizadas de
acordo com a sua expectativa de realizao ou liquidao.
Os valores de mercado dos instrumentos nanceiros e contratos de
derivativos em 31 de dezembro de 2007 foram estimados com
base em preos cotados no mercado.
24. Mudana na Legislao Societria
Brasileira
E
m 28 de dezembro de 2007, foi promulgada a Lei n
11.638/07, que modica certos dispositivos da Lei das
Sociedades por Aes (Lei n 6.404, de 15 de dezembro de
1976). Em termos gerais, a nova Lei requer a harmonizao das
prticas contbeis adotadas no Brasil com determinados padres
contbeis internacionais derivados das normas emitidas pelo IASB -
International Accounting Standard Board, com aplicao a partir de
1 de janeiro de 2008.
Dentre as alteraes requeridas nas prticas contbeis adotadas
no Brasil esto: a substituio da Demonstrao das Origens e
Aplicaes de Recursos pela Demonstrao dos Fluxos de Caixa;
a incluso da Demonstrao do Valor Adicionado; a criao de
novos subgrupos de contas; e a introduo de novos critrios
para classicao e avaliao de instrumentos nanceiros,
valorizao de determinados ativos a valor de mercado e do
conceito de ajuste ao valor presente para as operaes ativas e
passivas de longo prazo e para as de curto prazo, se relevantes.
A Companhia j adota a prtica de divulgar a Demonstrao do
Fluxo de Caixa.
O principal impacto das alteraes introduzidas pela Lei
11.638/07 nas demonstraes contbeis individual e consolidada
da Companhia para o exerccio ndo em 31 de dezembro
de 2007 decorrente dos ajustes de converso em funo da
variao cambial de investimentos societrios da controladora e
controlada, no exterior, que se fossem efetuados de acordo com o
Pronunciamento Tcnico CPC 02 do Comit de Pronunciamentos
Contbeis, de 09 de novembro de 2007, aprovado pela
Deliberao CVM n 534, de 29 de janeiro de 2008 produziriam
uma reduo do prejuzo do exerccio de R$ (165.032) para
R$ (5.002), pois seriam reconhecidos diretamente no patrimnio
lquido, no subgrupo Ajustes de Avaliao Patrimonial. Essa reduo
do prejuzo seria reetida na reduo do resultado de equivalncia
patrimonial de R$ (276.591) para R$ (199.370) na controladora
e no resultado nanceiro lquido de R$ (276.283 ) para R$
(193.474) na controladora e de R$ (403.113) para R$ (243.083)
no consolidado. A nota explicativa 25 apresenta uma demonstrao
resumida do resultado do exerccio, contemplando esses efeitos.
25. Efeitos das variaes cambiais sobre
investimentos societrios no exterior
ocorridas no exerccio de 2007
A
JBS S.A. uma companhia aberta desde 28 de maro de
2007. Tem investimentos relevantes, direta ou indiretamente,
em vrios pases, principalmente nos Estados Unidos e na Argentina.
O investimento nos Estados Unidos foi efetuado em julho de 2007,
atravs da aquisio do controle da JBS USA, em uma operao no
valor de US$ 950 milhes.
O investimento na Argentina refere-se ao controle indireto da Swift
Armour, envolvendo aportes de 716 milhes de pesos argentinos, dos
quais 356 milhes foram efetuados durante o exerccio de 2007.
Tanto o dlar norte americano quanto o peso argentino sofreram
desvalorizaes signicativas em relao ao real no perodo
decorrido entre as datas dos investimentos e o trmino do exerccio
de 2007. A desvalorizao do dlar em relao ao real foi de
7,9% e a do peso argentino em relao ao real foi de 19,6%.
Essas desvalorizaes do dlar norte americano e do peso
argentino em relao ao real geraram variaes cambiais de
montante signicativos na avaliao dos investimentos acima
mencionados.
O Pronunciamento Tcnico CPC 02 do Comit de Pronunciamentos
Contbeis, de 09 de novembro de 2007, aprovado pela
Deliberao CVM n 534, de 29 de janeiro de 2008, que trata
dos efeitos nas mudanas nas taxas de cambio e converso de
demonstraes contbeis, levou em considerao a importncia
e necessidade de que as normas contbeis brasileiras sejam
convergentes com as prticas contbeis internacionais.
Considerando que a Companhia tornou-se aberta no exerccio
de 2007, e que, nesse exerccio de 2007, foram efetuados os
investimentos relevantes que geraram as variaes cambiais de
valores signicativos, entendem os seus Administradores que as
normas contbeis internacionais, introduzidas no Brasil atravs do
Pronunciamento Tcnico em questo, que, em princpio, somente
sero obrigatoriamente aplicadas a partir de dezembro de 2008,
poderiam ser aplicadas no exerccio de 2007, para melhor
apresentar seus resultados operacionais.
A Companhia formulou consulta CVM para obter autorizao
para aplicar antecipadamente os procedimentos previstos no
Pronunciamento CPC 02, porm, face aos prazos legais para
divulgao de suas demonstraes contbeis e realizao da AGO,
decidiu no proceder a essa antecipao, ocialmente. Entretanto,
por julgar relevante e atender ao que foi recomendado pela CVM
em seu Comunicado ao Mercado emitido em 14 de janeiro
de 2008, a Companhia divulga a seguir como se apresentaria
a sua Demonstrao do Resultado do exerccio ndo em 31 de
dezembro de 2007, adotando o procedimento de reconhecer as
variaes cambiais de investimentos relevantes mantidos no exterior
diretamente no patrimnio lquido e que melhor reetem o seu
desempenho operacional.
"Pro Forma"
Receita operacional lquida 3.995.842 14.141.571
Custo dos produtos vendidos (2.915.674) (12.609.093)
LUCRO BRUTO 1.080.168 1.532.478
Despesas administrativas, gerais e com vendas (448.657) (1.062.224)
Resultado nanceiro lquido (193.474) (243.083)
Resultado de equivalncia patrimonial (199.370) -
Demais despesas operacionais (141.906) (141.935)
Resultado no operacional (171) 11.206
Imposto de renda e contribuio social (101.592) (104.903)
Participao minoritria no resultado de controladas - 3.459
PREJUZO DO EXERCCIO (5.002) (5.002)
VALOR EBITDA 688.137 591.061
26. Eventos Subsequentes
a) Aquisio da Inalca
Em 3 de maro de 2008, a Companhia concluiu a aquisio de 50%
do capital social da Inalca S.p.A. (Inalca), controlada pela Cremonini
CRM.MI (Cremonini ) por um total de 225 milhes de Euros,
baseado em umenterprise value da Inalca de 600 milhes de Euros.
A Inalca lder absoluta na Itlia, sendo uma das principais
operadoras europias no setor de processamento de carne bovina.
A Inalca produz e comercializa uma linha completa de carnes
frescas e congeladas, embaladas a vcuo ou divididas em pores,
carne enlatada, produtos prontos para consumo, hambrguer fresco
e congelado, carne moda e produtos pr-cozidos. Com uma
capacidade de abate de 3.500 cabeas de gado/dia e uma
capacidade de processamento de 260.000 toneladas de carne/
ano (das quais 50.000 toneladas de hambrguer), a Inalca opera
atravs de uma estrutura de produo composta de 6 unidades
na Itlia, especializada por linha de produo, e 9 instalaes
internacionais localizadas na Europa, Rssia e na frica.
Sua subsidiria integral Montana Alimentari S.p.A. (Montana) uma
das principais operadoras italianas na produo, comercializao
e distribuio de carnes curadas, aperitivos e produtos prontos
para consumo, oferecendo mais de 230 produtos. Proprietria
das marcas histricas Montana e IBIS, a Montana apresenta
uma estrutura industrial de 4 unidades, especializadas por tipo de
produo e localizadas em reas denidas como Denominao de
Origem Protegida (D.O.P) e Indicao Geogrca Protegida (I.G.P).
A Montana tambm uma das principais operadoras no mercado
italiano de carne enlatada, com 22% de participao de mercado,
e de produtos fatiados.
A Companhia e a Cremonini, assinaram um contrato que visa a
formao de uma aliana estratgica entre elas, a qual abranger
toda a diviso de produo de carne ovina e subprodutos de
carne bovina da Cremonini. O acordo inclui uma opo de
venda, de acordo com a qual a Cremonini poder exercer o
direito de vender a sua participao de 50% na Inalca para a
Companhia a qualquer momento entre o quarto e dcimo ano
aps a concluso da operao. Alm disso, o acordo estabelece
uma opo de compra, a qual pode ser exercida no caso de
mudana de controle dos respectivos acionistas majoritrios. Esta
aliana estratgica criar sinergias importantes entre os produtos
e canais de venda da Companhia e da Cremonini, ambas lderes
em seus respectivos mercados: a JBS com produo e distribuio
nos mercados da Amrica do Sul, Estados Unidos e da Austrlia,
e a Cremonini, atravs da Inalca e Montana, com atuao na
Europa, Rssia e frica.
Para a Companhia, esta operao representa uma oportunidade
de acesso a novos mercados e clientes, dentre os quais grandes
multinacionais no setor de fast food, produtores de alimentos
industrializados, grandes cadeias de varejo e empresas de
distribuio de alimentos (foodservice). A aliana tambm oferece
Companhia acesso tecnologia de ltima gerao da Inalca,
amplamente reconhecida, bem como aos produtos de maior
valor agregado comercializados sob a marca Montana. Para a
Cremonini, a transao garante acesso privilegiado s principais
fontes mundiais de fornecimento de carne bovina, alm de fortalecer
o controle global de toda a cadeia de abastecimento.
b) Contratos de aquisio:
Smitheld Beef
Em 4 de maro de 2008, a Companhia celebrou um stock purshase
agreement visando aquisio, direta ou indiretamente, da
totalidade das aes representativas do capital social da Smitheld
Beef Processing ( Smitheld ), incluindo 100% das aes de emisso
da subsidiria Five Rivers Ranch Cattle Feeding ( Five Rivers ). A
Smitheld uma sociedade com sede em Delaware, Estados Unidos
da Amrica, e que concentra a unidade produtora de carne bovina
da Smitheld Foods, Inc. Esto excludos na aquisio da Smitheld
os estoques de gado vivo, mantendo-se, entretanto, a prestao de
servio do processo de engorda pela Companhia. O fechamento da
operao contemplada no contrato est sujeito ao cumprimento de
condies precedentes usuais em negcios dessa natureza, dentre as
quais a aprovao pelas autoridades governamentais.
A Smitheld possui quatro plantas de abate de bovinos, situadas em
Green Bay/Wisconsin, Plainwell/Michigan, Souderton/Pensilvnia
e Tolleson/Arizona; uma graxaria em Elroy/Pensilvnia; uma
unidade de connamento de bovinos em South Charleston/Ohio;
e uma transportadora, com cerca de 120 veculos de transporte
refrigerado. A Smitheld processa aproximadamente 680 mil
toneladas de carne bovina in natura por ano.
A Five Rivers possui dez unidades de connamento de bovinos com
capacidade para 811.000 cabeas localizadas nos estados do
Colorado, Idaho, Kansas, Oklahoma e Texas.
De acordo com o contrato , o preo de aquisio da Smitheld
Beef de US$ 565 milhes e ser pago integralmente em dinheiro.
O preo de aquisio est sujeito a ajustes, de acordo com as
variaes no valor de capital de giro da Smitheld. Adicionalmente,
a Companhia tem a inteno de capitalizar a Five Rivers em mais
US$ 200 milhes aps o fechamento da operao.
National Beef
Em 4 de maro de 2008, a Companhia celebrou um Membership
Interest Purshase Agreement visando aquisio, direta
ou indiretamente, da totalidade da participao societria
representativa do capital social da National Beef, sociedade
constituda de acordo com as leis de Delaware, Estados Unidos da
Amrica, e que abate e comercializa carne bovina, cortes de carne
embalados e customizados e subprodutos bovinos. O fechamento
da operao contemplada no Contrato est sujeito ao cumprimento
de condies precedentes usuais em negcios dessa natureza,
dentre as quais a aprovao pelas autoridades governamentais.
A National Beef possui trs plantas de abate de bovinos, uma em
Dodge City/Kansas, uma em Liberal/Kansas e uma em Brawley/
California; duas plantas de processamento de cortes de carne
embalados e customizados ,especializadas em produtos para venda
a varejistas com destino ao consumidor nal situadas em Hummels
Wharf/Pensilvnia e Moultrie/Gergia; uma planta especializada
em produtos porcionados para estabelecimentos comerciais e
consumidor nal em Kansas City/Missouri; e uma transportadora,
com cerca de 1.200 veculos entre transporte refrigerado e de gado
vivo, localizada em Liberal/Kansas.
De acordo com o Contrato, a Companhia pagar aos membros
da National Beef o valor total de US$ 560 milhes, dos quais
aproximadamente US$ 465 milhes sero pagos em dinheiro
e aproximadamente US$ 95 milhes sero pagos em aes
de emisso da Companhia. No fechamento da operao, a
Companhia assumir as dvidas e outros passivos da National
Beef, resultando em um valor de rma ( enterprise value ) de
aproximadamente US$ 970 milhes. A Companhia pretende utilizar
aes de sua emisso em tesouraria para realizar o pagamento
da parcela do preo de aquisio a ser paga em aes, e, para
tanto, procurar obter a devida autorizao da CVM, nos termos da
Instruo CVM n 10, de 14 de fevereiro de 1980.
Tasman
Em 4 de maro de 2008, a Companhia celebrou um Share
Sale Agreement visando aquisio, direta ou indiretamente,
das operaes da Tasman, da Austrlia, com atuao no abate,
processamento e comercializao de carne bovina e de animais de
pequeno porte. A concluso da operao contemplada no contrato
est sujeita ao cumprimento de condies precedentes usuais
em negcios dessa natureza, dentre as quais a aprovao pelas
autoridades governamentais.
A Tasman possui seis plantas de abate de bovinos e animais de
pequeno porte situadas em Brooklyn/Victoria, Cobram/Victoria,
Devonport/Tasmnia, Longford/Tasmnia,Yarrawonga/Victoria
e King Island/Tasmania; e uma unidade de connamento, com
capacidade para 25.000 cabeas de gado e 45.000 cabeas de
ovinos em Yambinya/New South Wales.
O preo de aquisio da Tasman de AUS$ 160 milhes
(aproximadamente US$ 150 milhes) e ser pago integralmente
em dinheiro, considerando um valor de rma ( enterprise value),
composto por AUS$ 110 milhes em equity value e mais AUS$ 50
milhes de dvida da Tasman.
Para fazer frente s obrigaes nanceiras estabelecidas nos
contratos que tratam das aquisies da Smitheld; National Beef e
Tasman, bem como s despesas incorridas pela Companhia nessas
operaes, ser realizada uma subscrio privada de novas aes
da Companhia, no montante aproximado de R$ 2.550.000, ao
preo de emisso de R$ 7,07 por ao, nos termos do artigo 170,
pargrafo 1, inciso III, da Lei n 6.404/76. Para tanto, ser
convocada uma Assemblia Geral Extraordinria da Companhia
para deliberar sobre o aumento do capital social, bem como sobre
a raticao da celebrao dos contratos relacionados com as
referidas aquisies e dos respectivos laudos de avaliao, nos
termos do artigo 256, 1, da Lei n 6.404/76.
Report of Independent Auditors
To the shareholders and management of JBS S.A.

1. We have audited the accompanying non-consolidated (parent company or individual nancial
statements) and consolidated balance sheet of JBS S.A. and its subsidiaries (collectively, the Company)
as of December 31, 2007 and 2006 and the correspondent statements of income (operations), changes
in shareholders equity, and changes in nancial position for the years then ended, prepared under the
responsibility of the Companys management. Our responsibility is to express an opinion on the Companys
Financial Statements. The individual nancial statements of Swift-Armour Sociedad Annima Argentina
(Swift-Armour) as of and for the year ended December 31, 2007 and 2006 have been audited by other
independent auditors, who have expressed an unqualied opinion thereon on January 25, 2008 and
January 19, 2007. We emphasize that the nancial statements of JBS USA (previously named Swift Foods
Company) includes its operating activities since July 11, 2007, the date when the Company acquired its
shareholders control.
2. We have conducted our audits in accordance with the Brazilian auditing standards, which consisted
primarily of: a) planning the work and evaluating the materiality of accounts, volume of transactions and
the Companys accounting and internal control systems; b) the examining, on a test basis, evidence and
record supporting the amounts and disclosures, and c) assessing the accounting principles used and
signicant estimates made by the Companys management, as well as evaluating the overall presentation
of the Companys Financial Statements.
3. In our opinion and based on the opinion of other independent auditor with respect to the individual
nancial statements of Swift-Armour, the Financial Statements of JBS S.A. and its subsidiaries present fairly,
in all material respects, the nonconsolidated and the consolidated nancial position of the Company and
its subsidiaries as of December 31, 2007 and 2006, the results of the Companys operations, changes in
its shareholders equity and changes in its nancial position for the years then ended, in conformity with the
accounting principles generally accepted in Brazil.
4. Our audits have been conducted for the purpose of issuing an opinion on the Companys Financial
Statements. Therefore, the consolidated and non-consolidated statements of cash ows for the years ended
December 31, 2007 and 2006 are presented to provide supplemental nancial information and are not
required as the integrant part of the Companys Financial Statements in accordance with the generally
accepted accounting principles in Brazil. We applied the same audit procedures described in the second
paragraph of this letter to these statements for the years ended December 31, 2007 and 2006 and, in
our opinion, they are fairly stated in all material respects in relation to the Companys Financial Statements
taken as a whole.
5. As described in note n. 25 to these nancial statements, the early application in the year ended
December 31, 2007 by the Company of accounting pronouncements for the recognition of foreign
exchange variations related to the Companys investments abroad denominated in foreign currency as set
forth in Technical Pronouncement no. 2 of the CPC (Brazilian Accounting Standards Board), which are
required to be applied by the Company for the year ended since December, 2008 as determined by
Determination no. 534 of the CVM (Brazilian Securities Exchange Commission) would have had a material
effect on the Companys statements of operations for the year ended December 31, 2007.
6. The Companys Financial Statements have been translated into English for the convenience of readers
outside of Brazil.
So Paulo, March 10, 2008
Terco Grant Thornton
CRC 2 SP 018.196/O-8
Jos Paulo da Silva Filho
Contador
CRC 1PE011318/O-0 T SP
Jos Cludio Rgo Aranha
Conselheiro
Balance sheets
as of December 31, 2007 and 2006 (In thousands of Reais)
Company Consolidated
2007 2006 2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents 109,221 54,375 323,709 68,629
Short-term investments (Note 5) 760,563 145,346 1,057,994 192,442
Trade accounts receivable, net (Note 6) 444,218 665,782 1,236,148 692,819
Inventories (Note 7) 604,225 563,935 1,511,595 657,504
Recoverable taxes (Note 8) 351,677 424,941 482,918 567,264
Prepaid expenses 4,388 1,936 44,468 2,956
Other current assets 30,612 43,494 102,910 68,938
TOTAL CURRENT ASSETS 2,304,904 1,899,809 4,759,742 2,250,552
NON-CURRENT ASSETS
Long-term assets
Credits with related parties (Note 9) 60,306 67,523 17,461 -
Judicial deposits and others 8,249 4,742 41,443 5,626
Deferred income taxes (Note 17) 16,251 16,050 23,758 23,492
Recoverable taxes (Note 8) 31,442 24,129 44,205 34,752
Total long-term assets 116,248 112,444 126,867 63,870
Permanent assets
Advances for investments in subsidiaries (Note 9) - 35,051 - -
Investments in subsidiaries (Note 10) 2,149,919 367,822 829,975 -
Other investments 10 10 10 10
Property, plant and equipment, net (Note 11) 1,328,015 899,176 2,536,098 1,125,218
Intangible assets, net 9,615 9,615 195,513 25,187
Total Permanent assets 3,487,559 1,311,674 3,561,596 1,150,415
TOTAL NON-CURRENT ASSETS 3,603,807 1,424,118 3,688,463 1,214,285
TOTAL ASSETS 5,908,711 3,323,927 8,448,205 3,464,837
2007 2006 2007 2006
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES
Trade accounts payable (Note 12) 355,510 271,460 1,099,385 309,294
Loans and nancings (Note 13) 858,975 579,128 2,384,836 653,638
Payroll and social charges (Note 14) 93,158 73,142 203,613 84,447
Declared dividends (Note 15) 17,465 - 17,465 -
Other current liabilities 50,294 41,545 70,536 51,886
TOTAL CURRENT LIABILITIES 1,375,402 965,275 3,775,835 1,099,265
NON-CURRENT LIABILITIES
Loans and nancings (Note 13) 1,341,313 2,039,977 1,364,800 2,039,977
Deferred income taxes (Note 17) 59,642 62,665 99,755 62,665
Provision for contingencies (Note 16) 45,979 47,207 55,681 53,005
Other non-current liabilities 31,787 25,758 101,702 26,471
TOTAL NON-CURRENT LIABILITIES 1,478,721 2,175,607 1,621,938 2,182,118
MINORITY INTEREST - - (4,156) 409
SHAREHOLDERS EQUITY (Note 18)
Capital stock 1,945,581 52,524 1,945,581 52,524
Capital reserve 985,664 - 985,664 -
Revaluation reserve 123,343 130,521 123,343 130,521
TOTAL SHAREHOLDERS EQUITY 3,054,588 183,045 3,054,588 183,045
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 5,908,711 3,323,927 8,448,205 3,464,837
The accompanying notes are an integral part of the nancial statements
Statements of income
for the years ended December 31, 2007 and 2006 (In thousands of Reais)
2007 2006 2007 2006
GROSS OPERATING REVENUE
Sales of products:
Domestic Sales 2,118,600 2,069,887 8,974,879 2,244,856
Foreign Sales 2,321,456 2,264,048 5,752,224 2,504,195
4,440,056 4,333,935 14,727,103 4,749,051
SALES DEDUCTIONS
Returns and discounts (191,932) (105,629) (273,556) (139,799)
Sales taxes (252,282) (272,097) (311,976) (307,570)
(444,214) (377,726) (585,532) (447,369)
NET SALE REVENUE 3,995,842 3,956,209 14,141,571 4,301,682
Cost of goods sold (2,915,674) (3,028,650) (12,609,093) (3,248,543)
GROSS INCOME 1,080,168 927,559 1,532,478 1,053,139
OPERATING INCOME (EXPENSE)
General and administrative expenses (74,188) (107,792) (275,594) (154,387)
Selling expenses (374,469) (404,271) (786,630) (437,857)
Financial income (expense), net (Note 19) (276,283) (279,297) (403,113) (247,145)
Equity in subsidiaries (Note 10) (276,591) 69,804 - -
Goodwill amortization (74,824) - (74,853) -
Non-recurring expenses (Note 20) (67,082) - (67,082) -
(1,143,437) (721,556) (1,607,272) (839,389)
OPERATING INCOME (LOSS) (63,269) 206,003 (74,794) 213,750
NON-OPERATING INCOME (EXPENSE), NET (171) (791) 11,206 (2,569)
2007 2006 2007 2006
INCOME (LOSS) BEFORE TAXES (63,440) 205,212 (63,588) 211,181
Current income taxes (101,793) (62,384) (107,104) (72,997)
Deferred income taxes 201 16,050 2,201 19,482
(101,592) (46,334) (104,903) (53,515)
INCOME (LOSS) BEFORE MINORITY INTEREST (165,032) 158,878 (168,491) 157,666
Minority interest (expense) income - - 3,459 1,212
NET INCOME (LOSS) (165,032) 158,878 (165,032) 158,878
NET INCOME (LOSS) PER SHARE (153,18) 3,02
Statement of EBITDA (Earnings before income taxes,
interest, depreciation and amortization and non-
operating income (expense), net)
Income (loss) before taxes (63,440) 205,212 (63,588) 211,181
Financial income (expense), net (Note 19) 276,283 279,297 403,113 247,145
Depreciation and amortization 56,626 66,775 120,807 86,916
Non-operating income (expense), net 171 791 (11,206) 2,569
Equity in subsidiaries (Note 10) 276,591 (69,804) - -
Non recurring expenses (Note 20) 67,082 - 67,082 -
Goodwill Amortization 74,824 - 74,853 -
AMOUNT OF EBITDA 688,137 482,271 591,061 547,811
Statements of changes in shareholders
equity
Capital stock
Capital reserve
Goodwill
BALANCE AS OF DECEMBER 31, 2005 7,500 -
Distribution of retained earnings - -
Capital Increase 40,977 -
Capital Increase by incorporation 508,135 -
Constitution of revaluation reserve - -
Realization of revaluation reserve - -
Net income for the year - -
Retained earnings destination:
. Retained earnings capitalization 520,892 -
Partial spin-off (1,024,980) -
BALANCE AS OF DECEMBER 31, 2006 52,524 -
Capital Increase 1,893,057 -
Goodwill in shares issue - 1,160,983
Realization of revaluation reserve - -
Loss for the year - -
Declared dividends (R$16,21 to one thousand of shares) - (17,465)
Loss absorption - (157,854)
BALANCE AS OF DECEMBER 31, 2007 1,945,581 985,664
Revaluation reserve Retained earnings Total
16,627 370,925 395,052
- (11,182) (11,182)
- - 40,977
- - 508,135
116,165 - 116,165
(2,271) 2,271 -
- 158,878 158,878
- (520,892) -
- - (1,024,980)
130,521 - 183,045
- - 1,893,057
- - 1,160,983
(7,178) 7,178 -
- (165,032) (165,032)
- - (17,465)
- 157,854 -
123,343 - 3,054,588
Parent Company Consolidated
2007 2006 2007 2006
SOURCE OF FUNDS
From operations
. Net income (loss ) for the year (165,032) 158,878 (165,032) 158,878
Items that do not affect working capital:
. Equity in subsidiaries 276,591 (69,804) - -
. Depreciation and amortization 56,626 66,775 120,807 86,916
. Goodwill amortization 74,824 - 74,853 -
. Write-off of xed assets 2,412 3,957 3,310 7,349
. Deferred income taxes (201) (16,050) (2,201) (19,482)
. Provision for contingencies (1,228) 47,207 2,676 53,005
. Minority interest - - (3,459) (1,212)
. Current and non-current nancial charges 59,331 (12,459) 46,465 (14,211)
Total provided from operations 303,323 178,504 77,419 271,243
From shareholders
. Increase in capital stock and goodwill in subscription 3,054,040 40,977 3,054,040 40,977
. Increase in cash ow received due to incorporation - 493,478 - 493,478
3,054,040 534,455 3,054,040 534,455
From third parties
. Loans and nancings 47,174 1,039,179 2,149,492 1,039,179
. Decrease in non-current assets 54,918 - - -
. Increase in other non-current liabilities 2,195 32,110 111,920 45,887
104,287 1,071,289 2,261,412 1,085,066
TOTAL SOURCE OF FUNDS 3,461,650 1,784,248 5,392,871 1,890,764
Statements of nancial position
Parent Company Consolidated
2007 2006 2007 2006
APPLICATION OF FUNDS
. Decrease in cash ow transferred by spin-off - 479,860 - 479,860
. Increase in non current assets - - 64,574 -
. Increase in investments 2,216,321 18,185 904,828 -
. Additions to property, plant and equipment and intangible assets 487,877 332,527 1,748,088 389,025
. Transfer from non-current to current liabilities 745,019 231,344 2,825,296 231,344
. Declared dividends / distribution of retained earnings 17,465 11,182 17,465 11,182
TOTAL APPLICATION OF FUNDS 3,466,682 1,073,098 5,560,251 1,111,411
INCREASE IN WORKING CAPITAL (DECREASE) (5,032) 711,150 (167,380) 779,353
VARIATION OF WORKING CAPITAL
2007 2006 2007 2006
CURRENT ASSETS
At the beginning of the year 1,899,809 1,469,156 2,250,552 1,632,899
At the end of the year 2,304,904 1,899,809 4,759,742 2,250,552
405,095 430,653 2,509,190 617,653
CURRENT LIABILITIES
At the beginning of the year 965,275 1,245,772 1,099,265 1,260,965
At the end of the year 1,375,402 965,275 3,775,835 1,099,265
410,127 (280,497) 2,676,570 (161,700)
INCREASE IN WORKING CAPITAL (DECREASE) (5,032) 711,150 (167,380) 779,353
Statements of cash ows
2007 2006 2007 2006
Cash from operating activities
. Net income (loss) of the year (165,032) 158,878 (165,032) 158,878
Adjustments to reconcile net income (loss) to cash provided
. Depreciation and amortization 56,626 66,775 120,807 86,916
. Allowance for doubtful accounts 1,819 881 1,589 1,029
. Goodwill amortization 74,824 - 74,853 -
. Minority interest - - (3,459) (1,212)
. Equity in subsidiaries 276,591 (69,804) - -
. Write-off of xed assets 2,412 3,957 3,310 7,349
. Deferred income taxes (201) 38,049 (2,201) 34,617
. Current and non-current nancial charges 107,134 170,000 100,689 168,248
. Provision for contingencies (1,228) 47,207 2,676 53,005
352,945 415,943 133,232 508,830
Variation in operating assets and liabilities
. Decrease (increase) in trade accounts receivable 49,304 (292,341) (726,332) (333,328)
. Decrease (increase) in inventories (40,290) (87,272) (863,281) (166,964)
. Decrease (increase) in recoverable taxes 65,951 (232,169) 71,167 (300,211)
. Decrease (increase) in other current and non-current assets 41,975 21,189 (111,738) 32,879
. Decrease (increase) in credits with related parties 30,686 245,633 (17,460) 219,326
. Increase (decrease) in trade accounts payable 95,617 94,583 807,020 132,410
. Increase (decrease) in other current and non-current liabilities 49,236 21,376 269,925 (6,133)
. Decrease in cash ow transferred by spin-off - (479,869) - (479,869)
. Increase in cash ow received due to incorporation - 493,478 - 493,478
2007 2006 2007 2006
Total cash provided by (used in) operating activities 645,424 200,551 (437,467) 100,418
Cash used in investing activities
. Additions to property, plant and equipment and intangible assets (487,877) (332,527) (1,748,088) (389,025)
. Increase in investments (2,216,321) (18,185) (904,828) -
Total cash used in investing activities (2,704,198) (350,712) (2,652,916) (389,025)
Cash from nancing activities
. Loans and nancings 1,325,046 1,781,839 4,987,313 1,945,683
. Payments of loans and nancings (1,632,784) (1,793,496) (3,812,873) (1,793,496)
. Increase in capital stock and goodwill in subscription 3,054,040 40,977 3,054,040 40,977
. Declared dividends / distribution of retained earnings (17,465) (11,182) (17,465) (11,182)
Total cash provided by nancing activities 2,728,837 18,138 4,211,015 181,982
Net increase (decrease) in cash 670,063 (132,023) 1,120,632 (106,625)
Cash, cash equivalents and short-term investments at the beginning
of the year
199,721 331,744 261,071 367,696
Cash, cash equivalents and short-term investments at
the end of the year
869,784 199,721 1,381,703 261,071
Notes to the nancial statements
01. Operating activities
J
BS S.A. (Company) is a listed company in the level New Market
of corporate governance and its shares are negotiated in BOVESPA
- Stock Exchange of So Paulo.
The operations of the Company and its subsidiaries consists of:
a) Activities in Brazil
The Company operates slaughterhouses, cold storage and food
processing operations for the production of beef, canned goods,
fat, animal rations and beef by-products, which are produced in the
manufacturing units located in the States of So Paulo, Gois, Mato
Grosso, Mato Grosso do Sul, Rondnia, Minas Gerais, Acre and
Rio de Janeiro. The Company distributes its products through centers
of distribution located in the States of So Paulo, Minas Gerais, Acre
and Paran.
In order to minimize transportation costs, the Company is responsible
for the transportation of cattle to its slaughterhouses and the
transportation of its export products.
Mouran Alimentos Ltda.. (Mouran) is a subsidiary, organized in
July 2006, and conducts slaughterhouse and cold storage business
operations for the production of beef, canned goods, fat, animal
rations and beef by-products in its facilities located in the State of
So Paulo.
JBS Embalagens Metlicas Ltda. (JBS Embalagens) produces metallic
cans in its plant located in the State of So Paulo, which are
primarily purchased by the Company.
The Company, until December 31, 2006, operated also in the
hygiene and cleaning products segment, manufacturing and selling
bars of soap, toilet cleaners, detergents, disinfectants, softeners,
pharmaceutical glycerin, coconut soap, multi-functional degreaser and
stain remover, shampoos, conditions, deodorant and liquid soap.
As described in letter c) the hygiene and cleaning products segment
were assigned to Flora Produtos de Higiene e Limpeza S.A. as a
result of a partial spin-off.

b) Foreign activities
The Company has indirect subsidiaries located in England and
Egypt, which are responsible for the sales and distribution of the
Companys products in Europe, Asia, and Africa.
Swift-Armour Sociedad Annima Argentina (Swift Armour), an indirect
wholly-owned subsidiary of the Company, operates slaughterhouses
and cold storage facilities for the production of beef, canned goods,
fat, animal food and by-products, with industrial units located in the
province of Buenos Aires, Entre Rios and Santa F.
Swift Armour have two subsidiaries acquired in 2007 being a
meat-packing slaughterhouse in Berezategui (Consignaciones
Rurales) and a can factory located in Zavate, both in the province
of Buenos Aires.
SB Holdings, Inc. (SB Holdings) and its subsidiaries, Tupman Thurlow
Co., Inc. (Tupman) and Astro Sales International, Inc. (Astro) located
in the United States and acquired in January 2007, sale processed
beef products in the North-American market.
Beef Snacks do Brasil Indstria e Comrcio de Alimentos Ltda (Beef
Snacks), an indirect wholly-owned subsidiary of the Company,
located in Santo Antnio da Posse, State of So Paulo, in operation
since August, 2007 produces Beef Jerky. Beef Snacks purchases
meat in the local market and exports the Beef Jerky to the United
States of America.
Jerky Snacks Brands, Inc (Jerky Snacks), an indirect wholly-owned
subsidiary of the Company, located in the United States of America,
produces and sells meat snacks (Beef Jerky, Smoked Meat Sticks,
Kippered Beef Steak, Meat&Cheese, Turkey Jerky and Hunter
Sausage). Jerky Snacks purchases meat from Brazil and in the local
market and it sales are mainly in the United States of America.
Global Beef Trading Sociedade Unipessoal Lda (Global Beef
Trading), an indirect wholly-owned subsidiary of the Company,
located in Ilha da Madeira, Portugal, sells products of bovine
meat, birds and porks. Global Beef Trading imports the products
from Latin America and exports to several countries, in Europe,
Africa, Asia and Middle East.
for the years ended on December 31, 2007 and 2006 (Expressed in thousand of reais)
On July, 2007, the Company acquired Swift Foods Company,
formerly known JBS USA Inc. (JBS USA). JBS USA has feedlots and
processes, packages and delivers fresh, further processed and value-
added beef and pork in natura products for sale to customers in
the United States and international markets. The fresh meat products
prepared by JBS USA include refrigerated beef and pork processed
to standard industry specications.
In the United States, JBS USA operates four beef processing facilities,
three pork processing facilities, one lamb slaughter facility and one
value-added facility for pork. In Australia, JBS USA operates four beef
processing facilities.
JBS USA divides its business into three segments: Swift Beef, through
which it conducts its U.S. domestic beef processing business; Swift Pork,
through which it conducts its U.S. domestic pork processing business;
and JBS Australia, through which it conducts its Australian beef business.
JBS USA in Australia operates four feedlots that provide grain-fed
cattle for its processing operations.
c) Corporate reorganization
Merger
As of March 1, 2006, Friboi Ltda. merged with JBS S.A., assuming
all of the assets and liabilities of JBS S.A., which prior to this merger
was a holding company with an indirect 100% interest in the total
capital stock of Swift-Armour. After giving effect to the merger, Friboi
Ltda.s capital stock increased from R$7,500 to R$508,135 totaling
R$515,635 represented by 515,635,240 quotas.

The following table shows the increase (decrease) in Friboi Ltda.s
assets and liabilities resulting from the merger, based on an appraisal
report prepared by specialized accountants:
R$
Current assets 557,997
Current Liabilities (64,519)
Working Capital 493,478
Permanent assets 775,040
Long-Term Liabilities (760,383)
14,657
Shareholders equity 508,135
On March 2, 2006, the quotaholders of Friboi Ltda. approved
a proposal to (1) transform Friboi Ltda. into a corporation
(Sociedade Annima), (2) exchange their quotas for
515,635,240 common shares, without par value and (3) change
Friboi Ltda.s name to JBS S.A..
Partial spin-off
According to article 229 of Law no. 6404/76 (the Brazilian
Corporation Law), the Company conducted a partial spin-off on
December 31, 2006, under which the Companys assets relating to
its hygiene and cleaning products division were assigned to Flora
Produtos de Higiene e Limpeza Ltda. The following chart describes
the items of the Companys balance sheet that were assigned to Flora
Produtos de Higiene e Limpeza S.A. as a result of the partial spin-off:
Current assets
Cash and cash equivalents 43
Short-term investments 439,631
Trade accounts receivable, net 53,348
Inventories 33,842
Recoverable taxes 4,323
Other current assets 9,016
540,203
Long-term assets
Credits with related parties 265,882
Judicial deposits 461
Other investments 6,516
Property, plant and equipment, net 278,600
Intangible assets, net 5,694
557,153
Total assets 1,097,356
Current liabilities
Trade accounts payable 16,589
Loans and nancings 7,522
Payroll and social charges 8,187
Other current liabilities 28,045
60,343
Long-term liabilities
Loans and nancings 11,669
Other Long-term liabilities 364
12,033
Total current and Long-term Liabilities 72,376
Net assets transferred 1,024,980
Total liabilities and transferred net assets 1,097,356
The operating loss recorded by the hygiene and cleaning products
division for the year ended on December 31, 2006, is summarized
as follows:
Net operating sales 334,130
Cost of goods sold (211,363)
Gross income 122,767
Operational expenses:
General and administrative expenses (48,872)
Selling expenses (90,523)
Operating Loss (16,628)
02. Presentation of nancial information
T
he individual and consolidated nancial statements, were
prepared in accordance with the generally accepted accounting
principles in Brazil, and they are presented in accordance with
NPC rule No. 27 issued by the Brazilian Institute of Independent
Auditors (Instituto dos Auditores Independentes do Brasil -IBRACON)
and rule No. 488 issued by the Brazilian Securities and Exchange
Commission (Comisso de Valores Mobilirios CVM) , both dated
October 3, 2005.
With respect to the Companys investment in Swift Armour and its
subsidiaries, we have compared the generally accepted accounting
principles in Argentina with the corresponding principles in Brazil
applied by the Company, and we have noted that there were no
material differences.
The accounting principles adopted by the Companies Tupman and
Astro, both subsidiaries of SB Holdings, located in the United States
of America, do not differ signicantly from those adopted in Brazil.
The accounting practices adopted in the United States of America by
JBS USA (US GAAP) are adjusted to Brazilian GAAP, according to
the following differences:
Finished goods inventories: valued using market price, and are s
adjusted to production average cost method;
Permanent assets: includes R$664.368, related to intangible s
assets and xed assets goodwill, calculated according to
applicable purchasing accounting, and it was adjusted reducing
the shareholders equity;
Derivatives designated as a hedge and used to hedge an s
anticipated transaction, changes in fair value of the derivatives
are deferred in the balance sheet within accumulated other
comprehensive income and were recognized in the statement of
earnings for Brazilian GAAP purposes.
03. Signicant accounting policies
a) Accounting Estimates
The preparation of nancial statements in accordance with
generally accepted accounting principles in Brazil requires the
Companys management to (i) make estimates and assumptions
that affect the reported amounts of assets and liabilities and (ii)
disclose (a) contingent assets and liabilities as of the date of the
nancial statements and (b) the reported amounts of revenue and
expenses during the reporting period. Actual results could differ
from those estimates.
b) Swap Receivables or Payables
The market value of derivative instruments is computed daily, and
the resulting receivables or payables are recorded based on their
fair market value.
c) Allowance for Doubtful Accounts
Allowance for doubtful accounts is computed based on the probable
loss, the prole of the customers, overall economic and nancial
condition and specic risks relating to the relevant customers. The
Companys management believes that the allowance for doubtful
accounts is sufcient to cover the exposure to possible losses.
d) Inventories
The Companys inventories are valued based on their cost of
acquisition, creation or production, such cost is lower than the market
or net realizable value.
e) Investments
The Companys investments in subsidiaries are accounted according
to the equity method. Other investments of the Company are valued
at their acquisition cost.
f) Property, plant and equipment
Property, plant and equipment are stated at an amount equivalent to
the sum of their historical acquisition cost and the amount resulting
from the increase in the value of these assets as determined by
revaluations performed by independent appraisal rms. Depreciation
is computed pursuant to the straight-line method, using rates
described in Note 11, which take into account the useful and
economic lives of the assets.
g) Other Current and Long-term Assets
Current and long-term assets are accounted for at their realization
value, including, if applicable, the related income, charges and
monetary variations.
h) Current Liabilities and Long-term Liabilities
Current and long-term liabilities are accounted for at their known
or computed amounts, including, if applicable, the related income,
charges and monetary variations.
i) Contingent assets and liabilities and legal
obligations
Contingent assets are recognized only when there are real
warranties or favorable judicial decisions, having judged. Contingent
assets with probable gain are just published in accompanying notes.
Contingent liabilities are provisioned when the losses are appraised
as probable and the involved amounts are measurable with enough
safety. The contingent liabilities appraised as possible losses are
just published in accompanying notes and the contingent liabilities
appraised as remote losses are not provisioned and not published.
Legal obligations are registered as liabilities/payable, independently
of the evaluation about the probabilities of success/gain, in claims
that the Company inquired the unconstitutionality of taxes.
j) Income Tax and Social Contribution
Current taxes
Provisions for income tax and social contribution are based on rates
and laws and regulations in force.
Deferred taxes
The Company records deferred income tax assets and liabilities
based on temporary differences between the carrying amounts on
the Companys nancial statements and the tax basis of assets and
liabilities.
k)
l) Supplemental information
In order to provide a better understanding of its nancial statements
the Company has presented, as supplementary information, its
consolidated statements of cash ows.
m) Consolidation
All assets and liabilities of JBS S.A. and its subsidiaries and revenues
and expenses from transactions between JBS S.A. and its subsidiaries
were eliminated. No inter-company prots were recorded on
the consolidated balance sheet of the Company. Accordingly,
the shareholders equity of JBS S.A. individually is equal to its
consolidated shareholders equity. The nancial statements of the
subsidiaries of JBS S.A. located outside of Brazil were originally
prepared using the local currency of the country in which they are
located. Subsequently, these amounts were converted into Reais
using the applicable commercial exchange rates reported by the
Central Bank of Brazil on the date of the consolidated balance
sheet for assets and liabilities, and the average exchange rate of the
period to revenues and expenses. The gains and losses due to the
conversion are recognized in the nancial income (loss).
The subsidiaries companies included in the consolidation are
mentioned in the Note 10.
04. Aquisition os Swift Foods Company
(Actual JBS USA)
O
n July 11, 2007 the Company, through its wholly-owned
subsidiary J&F Acquisition Co., created specically for this
purpose, concluded the acquisition of the controlling interest of Swift
Foods Company (Swift), company headquartered in Delaware,
United States of America, for the total amount US$1,459 million,
including US$225 million paid to HM Capital Partners LLC, the
former controlling shareholder of Swift, and US$1,234 million used
for the liquidation of nancial debt of Swift.
A substantial portion of the nancing proceeds for the acquisition
of Swift by JBS is related to the capital increase, as approved in
the Extraordinary Shareholders Meeting held on June 29, 2007, in
the total amount of R$1,853,833 through the issuance, for private
subscription of 227,400,000 (two hundred and twenty seven
million and four hundred thousand) new common shares, nominative,
without nominal value, in all identical to the existing shares, having
the same rights given upon the remaining common shares issued by
the Company, under the terms outlined in its by-laws (Estatuto Social)
and according to applicable legislation. BNDES Participaes S.A.
BNDESPAR (BNDESPAR) subscribed a relevant portion of the new
common shares representing the Companys capital, in the amount of
R$1.160.776, allowing for a relevant participation by BNDESPAR
in the proceeds that were raised by the Company for the acquisition
of the Swift Foods.
The subscription of the shares by BNDESPAR occurred through an
assignment of a portion of the preemptive rights of the shareholders
of J&F and/or ZMF in the subscription of new shares. The remaining
proceeds were obtained through new debt at Swift Foods at the date
of the acquisition.
The conclusion of the Swift acquisition resulted in the creation of
the worlds largest company in the beef protein sector and the
largest Brazilian company in the food sector, consolidating the
Company in the national and global beef markets and making it
an important competitor in the global market for pork meat. With
this, the Company is able to produce and distribute in Brazil,
Argentina, the United States of America and Australia, the four main
beef consuming countries in the world. This position will enable the
Company to (i) have access to the two blocks of commercial barriers:
Atlantic and Pacic; (ii) diversify its risk with regards to sanitary
barriers; and (iii) unify and strengthen the Swift brand globally.
Due the signicance of this investment in the consolidation in the
nancial statements of the Company for year ended December
31, 2007, and the comparability loss with previous periods, we
are presenting below the combined balance sheet and income
statements to allow a comparison of the consolidated nancial
statements before the investment in Swift Foods, and we are
presenting the JBS USA nancial statements. JBS USA income
statements reect the income statements since July 11, 2007, which
represents the period after the acquisition by the Company.
Balance Sheet 2007 2006
JBS and other
subsidiaries ASSETS Consolidated JBS USA Consolidated
Cash, cash equivalents and short-term investments 1,381,703 405,451 976,252 261,071
Trade accounts receivable, net 1,236,148 710,793 525,355 692,819
Inventories 1,511,595 732,992 778,603 657,504
Other current and non current assets 757,163 114,920 642,243 703,028
Investments in subsidiaries 829,975 - 1,715,332 -
Property, plant and equipment, net 2,536,098 905,125 1,630,973 1,125,218
Other permanent assets 195,523 170,656 24,867 25,197
TOTAL ASSETS 8,448,205 3,039,937 6,293,625 3,464,837
LIABILITIES AND SHAREHOLDERS EQUITY
Trade accounts payable 1,099,385 683,600 415,785 309,294
Loans and nancings 3,749,636 1,426,524 2,323,112 2,693,615
Other current and non current liabilities 548,752 210,604 338,148 278,474
Minority interest (4,156) - (4,156) 409
Shareholders equity 3,054,588 719,210 3,220,735 183,045
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 8,448,205 3,039,937 6,293,625 3,464,837
Income Statements 2007 2006
Consolidated JBS USA
JBS and other
subsidiaries
"Pro Forma"
Consolidated
Net sales revenue 14,141,571 9,249,627 4,891,944 3,967,552
Cost of goods sold (12,609,093) (8,899,896) (3,709,197) (3,036,673)
GROSS INCOME 1,532,478 349,731 1,182,747 930,879
General, administrative and selling expenses (1,062,224) (492,518) (569,706) (452,849)
Financial income (expense), net (403,113) (33,151) (369,962) (204,149)
Equity in subsidiaries - - (160,976) -
Other operating expenses (141,935) - (141,935) -
Non-operating income (expense), net 11,206 16,423 (5,217) (2,462)
Income taxes (104,903) (1,460) (103,443) (92,282)
Minority interest (expense) income 3,459 - 3,459 1,212
NET INCOME (LOSS) (165,032) (160,976) (165,032) 180,349
AMOUNT OF EBITDA 591,061 (101,392) 692,453 564,946
05. Short-term investments
06. Trade accounts receivable, net
2007 2006 2007 2006
Certicates of bank deposits - CDB-DI 339,029 135,865 348,472 135,906
Investment funds 421,534 9,481 446,923 9,481
Certicates of deposits - CD - - - 47,055
Auction-rate securities - - 262,599 -
760,563 145,346 1,057,994 192,442
Certicates of bank deposits-CDB-DI are xed income securities that provide yields of approximately 100% of the Brazilian interbank rate. The
Investment Funds are supported by investments in Multi-Market funds, to the qualied public.
Auction-rate securities are securities from JBS USA that participate in an auction process run by an agent where the interest rate earned on the
bonds is reset every 7 - 28 days.
2007 2006 2007 2006
Receivables not yet due 427,746 649,222 990,611 676,406
Overdue receivables:
From 1 to 30 days 7,904 4,524 154,709 4,525
From 31 to 60 days 4,941 862 71,993 862
From 61 to 90 days 4,978 8,083 10,513 8,083
Above 90 days 2,497 5,106 17,516 5,106
Allowance for doubtful accounts (3,848) (2,015) (9,194) (2,163)
16,472 16,560 245,537 16,413
444,218 665,782 1,236,148 692,819
The individual and consolidated income statement for the year ended in December 30, 2006, presented for comparability purposes, was
prepared excluding the net income of the hygiene and cleaning products division, which was separated from the Company through a partial spin-
off that occurred in December 31, 2006, as explained in Note 1. Accordingly, such income statement is denominated as Pro Forma.
The Pro Forma income statement is not intended to be used as a basis for the calculation of dividends, nor for any other purpose rather than to
provide comparable information about the nancial performance of the Company.
07. Inventories
08. Recoverable taxes
2007 2006 2007 2006
Finished products 513,492 513,607 1,072,732 578,508
Work-in-progress 745 - 71,514 3,739
Raw-materials 55,242 18,286 68,688 40,884
Livestock - - 171,552 -
Warehouse spare parts 34,746 32,042 127,109 34,373
604,225 563,935 1,511,595 657,504
2007 2006 2007 2006
ICMS (value added tax) 295,362 220,731 314,924 240,688
IPI (excise tax) 39,920 117,737 97,805 232,056
PIS and COFINS (social contribution on net income) 42,427 55,618 55,623 62,478
IRRF (withholding income tax) 4,072 54,981 7,485 57,541
IVA (Argentinian value added tax) - - 38,176 9,066
Others 1,338 3 13,110 187
383,119 449,070 527,123 602,016
Current and Long-term:
Current 351,677 424,941 482,918 567,264
Non-current 31,442 24,129 44,205 34,752
383,119 449,070 527,123 602,016
ICMS (value added tax)
Brazilian law authorizes manufacturers of goods to set off the ICMS
tax paid upon the purchase of raw materials against the taxes charged
upon the sale of the nished goods manufactured with such raw
materials. Recoverable ICMS derives from tax credits received by the
Company in connection with ICMS taxes paid upon its purchase of
raw-materials, packaging materials and other goods, which are offset
against ICMS taxes resulting from the sale of the Companys products.
As export sales are exempt from ICMS and a relevant portion of the
Companys sales are export sales, a tax credit is generated.
The Tax Authority of the State of So Paulo (Secretaria da Fazenda
do Estado de So Paulo ) led administrative proceedings against
the Company challenging the amount of the Companys ICMS tax
credits arising from the purchase of cattle by the Company in other
Brazilian states. The Tax Authority of the State of So Paulo claims
that the tax incentives granted by such other states were not based
upon an agreement with the State of So Paulo, and accordingly,
the Tax Authority of the State of So Paulo only recognizes the
Companys ICMS tax credits up to the amount of the ICMS tax paid
in such other states.The Companys management believes that its
accounting of the ICMS tax credit is in accordance with Brazilian
law, and expects to be reimbursed for a signicant part of such
credits during the next months.
December 31, 2007
Trade accounts
receivable
Trade accounts
payable
Purchases
Sales of
products
Credits
Mouran Alimentos Ltda. - - 2,292 10,164 -
JBS Embalagens Metlicas Ltda. 401 2,346 63,559 11,418 69,695
JBS Global Beef Company SU Lda. - - - - (41,626)
Friboi Egypt Company L.L.C 8,667 - - 72,382 -
Friboi (UK) Limited 11,554 - - 44,784 -
Swift Armour Socidad Annima Argentina - 595 6,569 - -
The Tupman Thurlow Co. 25,900 609 - 70,770 -
Global Beef Trading SU Lda. 587 - - 2,527 -
Beef Snacks Brasil Ind.Com.Alimento Ltda 805 84 9 4,890 22,095
Beef Snacks International BV - - - - 10,142
47,914 3,634 72,429 216,935 60,306
December 31, 2006
Trade accounts
receivable
Trade accounts
payable
Purchases
Sales of
products
Credits
Mouran Alimentos Ltda. 451 68 - - 3,249
JBS Embalagens Metlicas Ltda. 7,822 2,770 25,161 - 103,944
JBS Global Beef Ltd. - - - - (50,360)
Friboi Egypt 41,675 - - 123,310 -
Friboi Investiments Ltd. - - - - 10,690
Friboi UK 13,728 - - 34,433 -
Swift Armour Socidad Annima Argentina - 411 - - -
The Tupman Thurlow Co. - - - 45,401 -
63,676 3,249 25,161 203,144 67,523
09. Related parties transactions
T
ransactions with related parties are mainly represented by sales
operations from the parent company to its subsidiaries abroad,
under normal market prices and terms, and by inter-company loans
with controlled and related subsidiaries with an interest rate of 1%
per month. Balances between related parties in the balance sheet
and income statement are the following:
PIS and COFINS (social contribution on net income)
PIS and COFINS tax credits are generated as a result of PIS/
COFINS taxes paid by the Company upon its purchase of raw-
materials, packaging and other materials used in the manufacturing
of its products against the PIS/COFINS taxes paid by Company
upon the sale of its nished products. Similarly to ICMS and IPI, as
exports of the Companys products are exempt from such taxes, a tax
credit is created.
IRRF (withholding income tax)
IRFF corresponds to withholding income tax levied upon the
redemption of marketable securities by the Company. The Company
expects to set off such withholding income taxes against income
taxes on net income paid for the applicable period.
General Comments
Based upon nal administrative decisions by the Cmara Superior
do Conselho de Contribuintes and on the opinion of its legal
counsels, the Company and JBS Embalagens has performed a
monetary adjustment of its tax credits of PIS, COFINS and IPI based
on the SELIC rate (which is the reference rate published by the
Central Bank of Brazil). After such monetary adjustments, the total
PIS, COFINS and IPI tax credits totaled R$126,181.
10. Investments in subsidiaries
a) Relevant information about subsidiaries
December 31, 2007
Companys
share quantity
Participation Capital stock
Shareholders
equity
Net income
(loss)
JBS Embalagens Metlicas Ltda. 10,000 99.00% 2 39,844 (1,011)
JBS Global Investments S.A. 23,000 100.00% 40,740 40,908 (6,804)
JBS Holding Internacional. S.A. 535,128 100.00% 535,128 385,831 (95,015)
JBS Global A/S (Denmark) 212 100.00% 71,648 108,106 (5,362)
Mouran Alimentos Ltda. 84 70.00% 120 (15,452) (11,595)
JBS USA, Inc. 100 100.00% 880,186 719,210 (160,976)
SB Holdings, Inc 20 100.00% 18 2,751 684
JBS Connamento Ltda. 30,001 100.00% 30,001 30,001 -
December 31, 2006
Companys
share quantity
Participation Capital stock
Shareholders
equity
Net income
(loss)
JBS Embalagens Metlicas Ltda. 10,000 99.00% 2 40,798 34,213
JBS Global Investments S.A. 19,000 100.00% 40,622 49,038 11,915
JBS Holding Internacional. S.A. 282,010 100.00% 282,010 227,728 (34,012)
JBS Global A/S (Denmark) 180 100.00% 9,279 53,355 44,080
Mouran Alimentos Ltda. 84 70.00% 120 (3,857) (3,977)
Beef Snacks do Brasil Ltda. 9,900 99.00% 10 - -
b) Investments movement
Balance as of
Dec 31, 2006
Addition
(realization)
Exchange
rate variation
Equity
Balance as of
Dec 31, 2007
JBS Embalagens Metlicas Ltda. 40,390 58 - (1,002) 39,446
JBS Global Investments S.A. 49,039 7,972 (9,298) (6,804) 40,909
JBS Holding Internacional. S.A. 227,728 253,118 - (95,015) 385,831
JBS Global A/S (Denmark) 53,355 64,405 (4,292) (5,362) 108,106
Mouran Alimentos Ltda. (2,700) - - (8,116) (10,816)
Beef Snacks do Brasil Ltda. 10 (10) - - -
JBS USA, Inc. - 1,753,453 (68,792) (160,976) 1,523,685
SB Holdings, Inc - 21,684 (427) 684 21,941
JBS Connamento Ltda. - 30,001 - - 30,001
Transfer to Other current liabilities
(Negative equity Mouran)
- - - - 10,816
Total 367,822 2,130,681 (82,809) (276,591) 2,149,919
In the third quarter of 2007, was nalized the Joint Venture operation between JBS S.A. (through the subsidiary JBS Global A/S) and Jay Earl Link
(through the company Link International Meat Products LTD) was nalized to operate the company Beef Snacks International BV, which became the
holding of Beef Snacks and Jerky Snacks, both integrally. As of December 31, 2007, the capital of Beef Snacks International BV is R$36.439
thousand, and Global JBS A/S is the owner of 50% of the capital (R$18.219 thousand).
Company Net amount
Annual Depreciation
Rates Cost Revaluation
Accumulated
Depreciation 2007 2006
Buildings 4% 285,927 116,742 (14,802) 387,867 382,523
Land - 104,652 9,352 - 114,004 79,835
Machinery & equipment 10% 223,208 45,032 (38,621) 229,619 211,720
Installations 10% 70,686 21,815 (12,887) 79,614 84,804
Computer equipment 20% 12,917 757 (5,512) 8,162 7,899
Vehicle and airplanes 20% 75,457 460 (40,140) 35,777 34,618
Construction in progress - 459,809 - - 459,809 85,659
Others 10 to 20% 18,046 1,541 (6,424) 13,163 12,118
1,250,702 195,699 (118,386) 1,328,015 899,176
c) Goodwill
In the Company
In July, 2007 the Company acquired 100% of the capital stock of Swift Foods Company, actual JBS USA, Inc., and paid a goodwill of
R$877.609, based on the expectation of future prots. The goodwill will be amortized as long as such prots are earned, in a period of 5 years.
During the year of 2007 was amortized godwill in the amount of R$73.134.
In January, 2007 the Company acquired 100% of the capital stock of SB Holdings, Inc., and paid a goodwill of R$20.881 based on the
expectation of future prots of the subsidiary. The goodwill will be amortized as long as such prots are earned, in a period not exceeding 10 years.
During the year of 2007, an amount of R$1.690 of the goodwill was amortized.
As described in note 15, the Company intends to exclude permanently the goodwill from the dividends calculation base.
In Subsidiary
In May, 2007 Swift Armour acquired 100% of the capital stock of Consignaciones Rurales S.A. and Argenvases S.A.I.C, and paid a goodwill of
R$6.338, based on the market value of the assets. The goodwill will be amortized as long as the depreciation of such assets are incurred, or write-
off of the assets. During the year of 2007 was amortized godwill in the amount of R$29.
11. Property, plant and equipment, net
Consolidated Net amount
Annual
Depreciation
Rates Cost Revaluation
Accumulated
Depreciation 2007 2006
Buildings 3 to 20% 819,653 116,742 (73,442) 862,953 493,743
Land
- 226,793 9,352 (2,919) 233,226 83,060
Machinery & equipment
8 to 10% 940,101 45,032 (293,598) 691,535 306,255
Installations
10% 75,512 21,815 (12,934) 84,393 84,816
Computer equipment
20 to 100% 54,417 757 (14,779) 40,395 8,041
Vehicle and airplanes
14 to 50% 94,860 460 (41,277) 54,043 34,972
Construction in progress
- 526,422 - - 526,422 96,052
Others
10 to 100% 54,335 1,541 (12,745) 43,131 18,279
2,792,093 195,699 (451,694) 2,536,098 1,125,218
During the last three years, supported by appraisal reports from SETAPE-Servios Tcnicos de Avaliaes do Patrimnio e Engenharia S/C Ltda.,
the Company made an appraisal of its facilities, resulting in an increase in the value of these assets, and the creation of the revaluation reserve and
the related deferred income tax and social contribution provisions.
As of December 31 2007, the balance of the Companys revaluation of xed assets account was R$195,699, the balance of the Company
revaluation reserve account was R$123,343, and the balance of the Company income tax and social contribution account was R$59,642. The
Company recorded accrued depreciation of R$12,714 with respect to the Companys revaluation of xed assets as of December 31, 2007.
12. Trade accounts payable
2007 2006 2007 2006
Commodities 242,688 188,963 588,230 214,248
Materials and services 109,078 77,736 470,830 84,618
Finished products 3,744 4,761 40,325 10,428
355,510 271,460 1,099,385 309,294
13. Loans and nancings
a) Company
Modality
Annual average rate of interest and
commissions
2007 2006
Financing for purchase of xed assets
FINAME / FINEM - Enterprise nancing TJLP-UMBNDES index rate and interest rate of 3,0% 227,561 250,785
FINIMP - Import nancing Exchange rate variation and interest rate of 5,0% - 12,492
227,561 263,277
Loans for working capital purposes
ACC - Exchange advance contracts Exchange rate variation and interest rate LIBOR + 0,20% 288,761 -
EXIM - BNDES export credit facility TJLP and interest rate of 3,0% 426,891 550,452
Fixed Rate Notes with nal maturity in February 2011
(Eurobonds)
Exchange rate variation and interest rate of 9,375% 494,338 597,224
Export prepayment Exchange rate variation and interest rate of Libor +
1,0%
167,810 275,046
(144-A)
Exchange rate variation and Interest rate of 10,5% 554,638 673,256
NCE / COMPROR CDI and interest rate of 2,0% 40,289 229,198
Others - 30,652
1,972,727 2,355,828
Total Loans and Financings 2,200,288 2,619,105
Current and Long-term
Current 858,975 579,128
Non-current 1,341,313 2,039,977
2,200,288 2,619,105
Long-term installments have the following maturities:
2008 - 507,165
2009 180,121 179,535
2010 105,744 105,747
2011 519,210 606,130
2012 4,848 -
2016 531,390 641,400
1,341,313 2,039,977
b) Consolidated
Modality
Annual average rate of interest and
commissions
2007 2006
Financing for purchase of xed assets
FINAME / FINEM - Enterprise nancing TJLP-UMBNDES index rate and interest rate of 3,0% 227,561 250,785
FINIMP - Import nancing Exchange rate variation and interest rate of 5,0% - 12,492
Notes Payable Interest rate Libor + 1,75% 19,325 -
246,886 263,277
Loans for working capital purposes
ACC - Exchange advance contracts Exchange rate variation and interest rate LIBOR + 0,20% 340,879 -
EXIM - BNDES export credit facility TJLP and interest rate of 3,0% 426,891 550,452
(Eurobonds)
Exchange rate variation and interest rate of 9,375% 494,338 597,224
Working Capital Interest rate Libor + 1,1% 1,402,371 74,510
Export prepayment Exchange rate variation and interest rate of Libor + 1,0% 167,810 275,046
Fixed Rate Notes with nal maturity February 2016
(144-A)
Exchange rate variation and Interest rate of 10,5% 554,638 673,256
NCE / COMPROR CDI and interest rate of 2,0% 68,793 229,198
Swift Australia cash advance facility BBSY + 0.35% 47,030 -
Others - 30,652
3,502,750 2,430,338
Total 3,749,636 2,693,615
Current and Long-term
Current 2,384,836 653,638
Non-current 1,364,800 2,039,977
3,749,636 2,693,615
Long-term installments have the following maturities:
2008 - 507,165
2009 184,379 179,535
2010 110,004 105,747
2011 520,840 606,130
2012 6,477 -
2016 543,100 641,400
1,364,800 2,039,977
Exchange Contract Advances (ACCs) are credits funded by nancial
institutions to JBS S.A., amounting to US$192.446 on December
31, 2007 and are used to nance Companys export sales.
Outstanding amounts of export pre-payment loans were US$94.738
on December 31, 2007 (US$128.646 on December 31, 2006).
Such loans were funded by nancial institutions.
NCE (Notas de Crdito Exportao) /COMPROR are an export
nance credit facility linked to COMPROR used to nance the
purchase of raw materials used in the Companys export products.
EUROBONDS -JBS S.A. issued 9.375% xed rate notes due on
2011 in total aggregate amounts of US$200 million on February 6,
2006 and US$75 million on February 14, 2006. These notes are
secured by JBS S.A. and J&F Participaes S.A..
144-A -JBS S.A. also issued the 10.5% xed rate notes due on 2016
in the total aggregate amount of US$300 million on July 28, 2006.
These notes are also secured by the Company.
Working capital -Represented, mainly, by loans of US$750 million
of JBS USA captured in the acquisition by the Company, with an
average interest of Libor + 1,1% at year. These loans that would due
in July, 2008 were renegociated to periods from 3 to 5 years.
14. Payroll and social charges
15. Declared dividends
2007 2006 2007 2006
Payroll and related social charges 35,638 40,333 55,577 49,799
Accrual for labor liabilities 27,125 21,835 94,502 21,943
Income tax 8,727 - 8,727 -
Social contribution 2,298 - 2,298 -
ICMS taxes payable 17,689 9,786 17,697 9,939
Others 1,681 1,188 24,812 2,766
93,158 73,142 203,613 84,447
2007 2006 2007 2006
Declared dividends 17,465 - 17,465 -
17,465 - 17,465 -
The Company, considering that it has been generating positive EBITDA, deliberated in the board of directors meeting of November 1, 2007 that
for the dividends calculation base, the foreign investments exchange loss and the amortization of the goodwill in investments acquisition of JBS
USA and SB Holdings will be permanently excluded. The decision of the board of directors will be opportunely appreciated and voted in the
Extraordinary General Assembly.
Based on the decision, in spite of presenting loss in the year of 2007, the Company declared dividends of R$17,465, that will be submitted to
the General Assembly of the Shareholders for approval, as calculation demonstrated below:
Loss of the year (165,032)
Negative exchange rate variation in investments (Direct) 82,809
Negative exchange rate variation in investments (Indirect) 77,221
Investments amortization - JBS USA 73,134
Investments amortization - SB Holdings 1,690
Adjusted base for dividens calculation: 69,822
Declared dividends (25%) 17,465
16. Provision for contingencies
T
he Company and its subsidiaries are parties in several legal and administrative proceedings arising from the ordinary course of their respective
businesses, including labor proceedings, civil proceedings and tax proceedings based on the estimative of its legal advisors. The Company has
established provisions in its nancial statements for the contingencies arising from these proceedings based on the estimates provided by its legal
advisors. The table below sets forth the main information about the legal and administrative proceedings as of December 31, 2007:
Tax Proceedings
a) ICMS - Value Added Tax (Imposto sobre Operaes
Relativas Circulao de Mercadorias e sobre a
Prestao de Servios de Transporte Interestadual e
Intermunicipal e de Comunicao)
The Tax Authority of the State of So Paulo (Secretaria da Fazenda
do Estado de So Paulo ) led several administrative proceedings
against the Company, under which the Tax Authority challenges the
amount of the Companys ICMS tax credits arising from the purchase
of cattle by the Company in other Brazilian states. The Tax Authority
of the State of So Paulo claims that the tax incentives granted
Type of Proceedings Number of lawsuits/administrative proceedings Provision Provision
Labor 1.023 4.563 6.886
Civil 702 11.702 15.765
Tax 186 29.714 33.030
Total 1.911 45.979 55.681
by such other states were not based upon interstate agreements,
and accordingly, the Tax Authority of the State of So Paulo only
recognizes the Companys ICMS tax credits up to the amount of
the ICMS tax paid in such other states. The Company estimates
that the claims under these administrative proceedings amount to
R$23,000 in the aggregate. In addition to presenting its defense
in such administrative proceedings, the Company has led legal
proceedings seeking the payment of damages from such other
states if the Tax Authority of the State of So Paulo prevails in these
administrative proceedings. Based on the opinion of the Companys
legal counsels, the Companys management established a provision
for losses arising from such administrative and legal proceedings in
the amount of R$826 as of December 31, 2007.
b) PIS (Programa de Integrao Social) and COFINS
(Contribuio para Financiamento da Seguridade Social)
The Company has led administrative proceedings challenging the
calculation method used in the assessment of PIS and COFINS by the
Federal Tax Authority (Secretaria da Receita Federal). The Companys
management estimates that the contingencies arising from these
legal proceedings amount to R$6,969 in the aggregate. Based on
the opinion of the Companys legal counsels and recent decisions
granted by the Brazilian Federal Supreme Court (Supremo Tribunal
Federal), the Companys management has recorded a provision for
losses arising from such legal proceedings in the amount of R$3,793
as of December 31, 2007.
c) CSLL - Social contribution on net prot (Contribuio
Social sobre o Lucro Lquido)
Based on an amendment to the Brazilian Federal Constitution
that exempted prots from exports from federal contributions, the
Company has led a lawsuit against the Federal Tax Authority
(Secretaria da Receita Federal) seeking to exclude its prots from
exports from the calculation of the Social Contribution on Net Prot
(Contribuio Social Sobre o Lucro Lquido CSLL) payable by the
Company. The Administration believes, based in its legal conselours
opinion, that will obtain success in the claim. However, since 2006,
using the conservatism, is adopting the procedure of including the
prot in export sales in the base of calculation of CSLL and maintains
provision in the amount of R$15.807 due to different procedure
used in previous years.
d) INSS - National Social Security Institute (Instituto
Social de Seguridade Social)
In September 2002, the INSS led two administrative
proceedings (autos de infrao) against the Company, seeking
to collect certain social security contributions (which are referred
to as contributions to the Rural Workers Assistance Fund (NOVO
FUNRURAL) in the aggregate amount of R$69,194, that the
Company should have allegedly withheld in connection with
purchases of cattle from individual ranchers. As a result of a
decision by a lower court in a proceeding to adjudicate a writ
of mandamus action led by the Company in order to challenge
the constitutionality of such social security contributions, the
administrative proceedings have been stayed and the INSS has
been enjoined from collecting these social security contributions
from the Company.
The INSS has not timely appealed from this decision and,
accordingly, the proceeding has been submitted to the review
of the Regional Federal Court of the 3rd Region as a matter of
law. Currently, the proceedings await a ruling by such appellate
court. Based on the Companys legal counsel opinion supported
by precedents of the Federal Supreme Court in a similar case, the
Companys management believes that the Company will prevail in
these proceedings. Accordingly, the Company has not established
any provision for contingencies arising from these proceedings.
In order to preserve its claims under the administrative proceeding
and to avoid the lapse of the applicable statute of limitations
period relating to these claims, the INSS sent the Company tax
default notices (noticaes scais de lanamento de dbito)
with respect to the contributions allegedly owed by the Company
for the period from January 1999 to December 2003 in the
aggregate amount of R$69,194. In its defense to these default
notices, the Company argued that it did not pay the contributions
with respect to the period described in such notices in light of the
favorable decision issued by the trial court reviewing the writ of
mandamus action, which ordered the stay of the administrative
proceedings and enjoined the INSS from collecting the
contributions from the Company until a nal decision is reached
under such action.
An ongoing legal proceeding arguing the unconstitutionality of
the contribution to the Rural Workers Assistance Fund, with issues
and factual circumstances similar to the writ of mandamus action
is currently under review by the Brazilian Federal Supreme Court
(Supremo Tribunal Federal). Up to the present moment, ve of the
ten judges opining on this proceeding have voted to declare this
contribution unconstitutional and no judge has issued a dissenting
opinion on this matter.
Based on this and other precedents and on the opinions of its
external legal counsel, the Companys management believes the
Company will prevail in these proceedings. Accordingly, the
Companys management has not established any provision for
contingencies arising from these proceedings as of December 31,
2007. Currently, the Company does not pay or deposit with any
court any amounts in connection with contributions to the Rural
Workers Assistance Fund.
Social Security Contributions Third-party Entities. The INSS
led several administrative proceedings against the Company
with claims totaling approximately R$11,000, seeking to collect
certain social security contributions with respect to third-party
entities (contribuies previdencirias terceiras entidades)
allegedly owed by the Company. These proceedings are based
on a wrongful interpretation by the INSS of the Social Security
Fund Code (Cdigo do Fundo de Previdncia e Assistncia
Social). Based on the opinion of the Companys external legal
counsel, the management of the Company believes the Company
will prevail in these proceedings. Accordingly, the management of
the Company has not established any provision for contingencies
arising from these proceedings as of December 31, 2007.
e) Other Tax Proceedings
The Company is also party of other 100 tax lawsuits and
administrative proceedings. Contingencies arising from these
proceedings are not material to the Company if considered on an
individual basis. We highlight that the proceeding with probable risk
of loss, which have provision, summarize an amount of R$9,288.
Labor Proceedings
As of December 31, 2007, the Company was party to (i) 887
labor lawsuits and 136 administrative proceedings (autos de
infrao) led by the Regional Labor Ofces (Delegacias Regionais
do Trabalho ) involving claims in the total aggregate amount of
R$21,726 and (ii) 2 administrative proceedings led by the Labor
Department of Justice (Ministrio Pblico do Trabalho) involving
claims in the total aggregate amount of R$258. Based on the
opinion of the Companys external legal counsel, the Companys
management recorded a provision in the amount of R$4,562 for
losses arising from such proceedings.
Most of these lawsuits were led by former employees of the
Company seeking overtime payments and payments relating to their
exposure to health hazards. Approximately 8% of these lawsuits
were led by employees of third-party companies that provide
outsourced services to the Company. Pursuant to Brazilian labor
laws, the Company is jointly liable for failure of these third-party
companies to comply with applicable labor laws.
Civil Proceedings
a) Slaughterhouse at Araputanga
In 2001, the Company (formerly known as Friboi Ltda.), entered
into a purchase agreement for the acquisition of one slaughterhouse
located in the City of Araputanga, State of Mato Grosso, from
Frigorco Araputanga S.A. (Frigorco Araputanga). As a result
of the payment of the purchase price by the Company and the
acknowledgement by Frigorco Araputanga of compliance by the
Company with its obligations under the purchase agreement, a
public deed reecting the transfer of title of the slaughterhouse from
Frigorco Araputanga to the Company was registered with the
applicable real estate notary.
As (i) Frigorco Araputanga was a beneciary of certain tax benets
granted by the Federal Government through an agency responsible
for fostering the development of the northern region of Brazil
(Superintendncia de Desenvolvimento da Amaznia SUDAM)
and (ii) [the slaughterhouse sold to the Company was granted by
Frigorco Araputanga to SUDAM as collateral for these tax benets
the consent of SUDAM was required for the registration of the public
deed with the applicable real estate notary. In June 2004, Frigorco
Araputanga S.A. led a lawsuit against the Company in a state court
located in the City of Araputanga, State of Mato Grosso, alleging
that the Company breached the purchase agreement and seeking
an injunction to prevent the Company from nalizing the transfer of
the slaughterhouse and a declaratory judgment that the purchase
agreement and the public deed registered with the real estate notary
were null and void.
In the lawsuit, Frigorco Araputanga claimed that the sale of the
slaughterhouse should be nullied as the Company did not obtain
the consent of SUDAM in order to register the public deed with the
applicable real estate notary. In January 2005, the court of appeals
(Tribunal de Justia do Mato Grosso ) held that the Company had
complied with all material terms of the purchase agreement. The
lawsuit was subsequently submitted to the review of the Federal Court
of Cceres, under No. 2005.36.01.0016188, in light of the
inclusion of the Federal Government as a party to the lawsuit. The
Company obtained the consent of Unidade de
Gerenciamento dos Fundos de Investimento -UGFIN, the successor of
SUDAM, according to the Federal Regional Court of the 1st Region
(Tribunal Federal da 1 Regio) decision, under Proceedings No.
2006.01.00.024584-7.
Actually, the parts are waiting the judicial expert manifestation
regarding the accounting appraisal presented by the judicial
expert that is favorable to the company, that after evaluating the
payments made by Agropecuria Friboi, was concluded that
98,5% of the debit was already paid. The judicial appeal number
2006.01.00.024584-7 was judged favorably to the company,
when the TRF Regional Federal Court declared valid the purchase
tittle deeds of the property, object of discussion. Based on your
legal advisers opinion and based in the brazilian jurisprudence
the Administration believes that their arguments will prevail and no
provision was registered.
b) Trademark Infringement
In July 2005, Frigorco Araputanga also led a lawsuit against
the Company seeking damages in the amount of R$26,938
and punitive damages in the amount of R$100,000 for the use
by the Company of the trademark Frigoara without Frigorco
Araputangas consent. The amounts of the claim were based upon a
report presented by Frigorco Araputanga to the trial court, which
appraised the value of the trademark Frigoara at R$315,000.
The Company presented its defense against this lawsuit alleging that
(i) the lawsuit should be analyzed and reviewed together with the
lawsuit relating to the purchase of the slaughterhouse from Frigorco
Araputanga by the Company, (ii) the trademark Frigoara was used
by the Company for a limited period of time, with the written consent
and upon the request of Frigorco Araputanga (the use of the
trademark by the Company was a requirement of SUDAM to consent
to the registration of the public deed contemplating the transfer of the
slaughterhouse from Frigorco Araputanga to the Company) and (iii)
the amount of any damages under the lawsuit should be limited to a
percentage of products sold by the Company under the trademark
Frigoara, pursuant to article 208 of the Intellectual Property Law.
Almost all of the products manufactured by the Company were
marketed under the trademark Friboi. The only product marketed by
the Company under the trademark Frigoara was minced meat, in
limited amounts.

In light of the foregoing, the Companys management established a
provision for losses arising from this lawsuit in the amount of R$600
December 31, 2007. Following a determination of the judge of the
trial court, the lawsuit was submitted to the review of the Federal Court
of Cceres on January 17, 2007. The judge of the Federal Court
of Crceres determined that this lawsuit be joined with the lawsuit
relating to the purchase of the slaughterhouse by the Company from
Frigorco Araputanga. The Federal Government will be notied to
issue an opinion on the matter under discussion in this lawsuit.
Based on the Companys legal counsel opinion supported by
precedents of the Federal Brazilian Supreme Court (Supremo Tribunal
Federal ) and the Brazilian Superior Court of Justice (Superior Tribunal
de Justia ), the Companys management believes that the Company
will prevail in these proceedings.
c) Administrative Council of Economic Defense
(Conselho Administrativo de Defesa Econmica), or
CADE
In 2005, the Economic Law Secretariat (Secretaria de Direito
Econmico ) initiated administrative proceedings against 11 Brazilian
beef processing companies, including the Company (formerly Friboi
Ltda.) and other large beef producers. The proceedings relate to
allegations made by the Brazilian Confederation of Agriculture and
Cattle Raising (Confederao da Agricultura e Pecuria do Brasil
) that these beef companies may have breached Brazilian antitrust
regulations by entering into agreements to establish the price of cattle
purchased by them for slaughter.
In November 28, 2007, CADE nalized the Term of Commitment of
Ceasing of Conducts -TCC with the company JBS S.A., suspending
the administrative proceeding in process. The TCC formalized by the
Company says about an accomplishment of a program of prevention
of conducts with competitors and the payment of a contribution of
R$13,769 to the Fund of Defense of the Diffuse Rights - FDD
d) Others
The Company is party in several civil lawsuits, mainly, under
which certain of the Companys former and current employees are
seeking damages from accidents that occurred in the workplace, in
amounts varying based on their salaries. Based on the opinion of
the Companys legal counsel, the Companys management recorded
a provision for losses arising from these lawsuits in the amount of
R$11,101 as of December 31, 2007.
2007 2006 2007 2006
Income before income tax and social contribution (63,440) 205,212 (63,588) 211,181
Addition (Exclusion), NET:
Permanent differences (Mainly: Equity in subsidiaries and
exchange variation of investments)
362,311 (68,865) 373,945 (53,717)
Temporary differences 590 47,207 6,307 57,301
Calculation basis for income tax and social contribution 299,461 183,554 316,664 214,765
Income tax and CSLL - 34% (101,793) (62,384) (107,104) (72,997)
Temporary differences (590) (47,207) (6,307) (57,301)
Deferred income tax and social contribution 201 16,050 2,201 19,482
b) Deferred income tax and social contribution
2007 2006 2007 2006
Assets:
Over provision for contingencies
Current year s 201 16,050 2,201 19,482
Prior years s 16,050 - 21,557 4,010
16,251 16,050 23,758 23,492
Liabilities:
Over revaluation reserve 59,642 62,665 99,755 62,665
59,642 62,665 99,755 62,665
The Company and its subsidiaries have a track record of future taxable net income. The Company expects to recover the tax credits arising there
from within eight years due to the termination of the causes of their contingencies, as follows:
2007 2006 2007 2006
2008 398 394 2,278 2,254
2009 398 394 2,278 2,254
2010 398 394 2,278 2,255
2011 398 394 2,278 2,255
2012 to 2014 14,659 14,474 14,646 14,474
16,251 16,050 23,758 23,492
17. Income taxes
I
ncome tax and social contribution are recorded based on taxable net income pursuant to the rates set forth in the applicable laws. Deferred
income tax and social contribution are recorded based on the temporary differences between the carrying amounts on the Companys nancial
statements and the tax basis of assets and liabilities, as well as on the tax loss carry forward credits.
a) Reconciliation of income tax and social contribution
18. Shareholders equity
a) Capital Stock
Through the Extraordinary Shareholders Meeting held on January
2, 2007, was approved the by-laws reform and the deployment
of the 52.523.990 existing shares into 350.000.000 common
shares and without nominal value. Through the Extraordinary
Shareholders Meeting held on March 7, 2007, was approved
a new reform of the by-laws and the deployment of these
350.000.000 shares into 700.000.000.
On March 28, 2007, the Company increased its Capital Stock through
an initial public offering of 150.000.000 of ordinary nominative shares
at the share price of R$8,00 per share, being the amount of R$39,224
considered as capital increase and R$1,160,776 considered as
capital reserve (premium on shares issued).
Through the Extraordinary Shareholders Meeting held on June
29, 2007 was approved the subscription of 227,400,000 new
common shares, nominative, without nominal value by unit share
price of R$8,1523, corresponding to R$1,853,833 generating a
capital reserve of R$207. BNDES Participaes S.A. BNDESPAR
(BNDESPAR) subscribed a relevant portion of the new common
shares representing the Companys capital. The subscription of the
shares by BNDESPAR occurred through an assignment of a portion
of the preemptive rights of the shareholders of J&F and/or ZMF in the
subscription of new shares.
The capital stock as of December 31, 2007 is composed by
1.077.400.000 of ordinary shares, without nominal value.

The Company is authorized to increase its capital in more
50.000.000 ordinary nominative shares.
b) Retained earnings reserves
Mandatory
Computed based on 5% of the net income of the year.
Reserve for expansion
It refers to the remaining balance of the net income after the
computation of Mandatory reserve and dividend distribution. The
purpose of this reserve is to provide funds to investment in assets.
c) Revaluation reserve
Revaluation reserve reects the appraisal effected by the Company,
net of tax effects that are progressively offset against retained
earnings to the same extent that the increase in value of the revalued
property is realized through depreciation, disposal or retirement.
d) Dividends
Mandatory dividends correspond to 25% of the adjusted net income
of the year, according to article 202 of Law 6.404/76.
19. Financial income (Expense), net
2007 2006 2007 2006
Exchange variation 87,544 (71,699) 14,506 (72,645)
Results on derivatives (180,877) 141,331 (180,678) 139,432
Interest - Loss (220,422) (253,257) (283,681) (261,652)
Interest - Gain 68,041 53,130 85,102 53,211
Taxes, contribution, tariff and others (30,569) (148,802) (38,362) (105,491)
(276,283) (279,297) (403,113) (247,145)
The nancial income in the year ended on December 31, 2007 is substantially affected by the exchange variation and its relation to permanent
foreign investments, mainly due to the high devaluation in the American dollar and Argentine peso to the Brazilian reais exchange rates. is
R$82.809 (R$160.030 in the consolidated), and did not affected the EBITDA.
20. Non-recurring expenses
2007 2006 2007 2006
Initial public offering 53,313 - 53,313 -
CADE agreement 13,769 - 13,769 -
67,082 - 67,082 -
Refers to non-recurring expenses incurred during the exercise of 2007, with initial public offering in New Market expenses and payment with
CADE, as detailed in explanatory note 16.
21. Managements compensation
F
or the years ended December 31, 2007 and 2006, the
aggregate compensation paid by the Company to the
Companys management was R$3,000 and R$5,180, respectively.
22. Insurance coverage (unaudited)
T
he Company adopts the policy of maintaining insurance
coverage for property, plant and equipment and inventories that
are subject to risks, in the amounts considered sufcient to cover any
loss arising from such risks. Due to the multi-location aspect of its
business, the Company contracts insurance covering the maximum
possible loss per operational unit. The insurance covers the following
events: re, ooding and landslide.
As of December 31, 2007 the maximum individual coverage was
R$99,000, considering all types of risks.
The insurance coverage related to the controlled Company Swift Armour
has the same characteristics as explained above, and the maximum
coverage as of December 31, 2007 and 2006 was US$65 million
(equivalent to R$115 million as of December 31, 2007).
The insurance coverage related to the controlled Company JBS
USA, Inc. has the same characteristics as explained above, and the
maximum coverage as of December 31, 2007 was US$295 million
(equivalent to R$523 million as of December 31, 2007).
23. Risk management and derivative
instruments
T
he Companys operations are exposed to market risks primarily
related to exchange rates, the credit worthiness of its customers,
interest rates and cattle prices. These types of risks are monitored
by its treasury area, which manages these risks through a system
of statistical computation of the Value at Risk (VAR) and its technical
committee. This committee is composed of board members and by
the Companys nancial executives, who monitor the risks, limits on
nancial positions and overall level of risk exposure.
a) Exchange Rate and Interest Rate Risk
The exchange rate and interest rate risks related to nancings and
loans, marketable securities and accounts receivable from clients
denominated in foreign currencies are hedged on a transaction
by transaction basis, through derivative instruments, such as swap
contracts (dollar to CDI or LIBOR to xed interest rates or vice-versa),
futures contracts traded on the Bolsa de Mercadorias e Futuros
-BM&F and forward contracts.
The notional value of the contracts is only accounted for in
memorandum accounts.
The results of over-the-counter trades in the futures market and
daily adjustments of currency future contracts are made realized
and liquidated; on the BM&F, and, as of December 31, 2007,
are accounted for as Amounts receivable from or payable to
future contracts.
The results of over-the-counter trades contracted with a future maturity
date are recorded on the balance sheet.
b) Credit risks
The Company is exposed to credit risks in respect of accounts
receivable from customers, which are partially mitigated through
the diversication of the credit prole of the Companys customer
portfolio. The Company does not have a client that represents more
than 10% of its combined net sales revenue, and its clients have
good nancial and operating indicators.
c) Purchase Price of Cattle
The Company is exposed to volatility with respect to the price
of cattle, caused by climate factors, supply, transportation cost
and agricultural policies. According to its inventory policy, the
Company maintains individual physical control of its livestock,
which includes anticipated purchases combined with operations on
the future markets.
d) Estimated Market Value
The nancial assets and liabilities of the Company are accounted
in the balance sheet based on their respective acquisition cost, and
the related classication of revenue and expenses in the income
statement is accounted for based on its expected realization or
liquidation value.
The market amount of the nancial instruments and derivatives
contracts as of December 31, 2007 were estimate based on the
quotation market price.
24. Changes in Brazilian corporate
legislation
O
n December 28, 2007, was promulgated the Law
11.638/07, which modies some devices of the Law no.
6404/76 (the Brazilian Corporation Law). In general terms, the
new law requests the harmonization of the accounting practices
adopted in Brazil with some international accounting pratices derived
from IASB -International Accounting Standard Board, with application
starting from January 1, 2008.
Some of the alterations requested in the accounting practices
adopted in Brazil are: the substitution of the Statements of nancial
position for the Statements of cash ow; the inclusion of the
Demonstration of the Added Value; the creation of new accounts
subgroups; and the introduction of new criteria for classication and
evaluation of nancial instruments, valorization of certain assets to
market value and the concept of adjust to the present value for the
operations (assets and liabilities) of long term, and for the current
period if relevant. The Company already adopts the practice of
publishing the Statements of the cash ow.
The main impact of the alterations introduced by the Law
11.638/07 in the individual and consolidated nancial
statements for the year ended on December 31, 2007 is due
to the conversion adjustments due to the investments exchange
variation to the Company and subsidiary, in foreign countries, that
if were calculated based on the Technical Pronouncement CPC 02
of the Committee of Accounting Pronouncements, of November
9, 2007, approved by the Deliberation CVM n 534, of January
29, 2008 would produce a reduction in the loss of the year
of R$(165.032) to R$(5.002), because would be recognized
directly in the shareholderss equity, in the subgroup of Adjustments
of Evaluation in the Shareholders Group. The reduction of the
loss would be reected in a reduction of equity in subsidiaries
from R$(276.591) to R$(199.370) in the company and in the
nancial income from R$(276.283) to R$(193.474) in the
Company and R$(403.113) to R$(243.083) in the consolidated.
The accompanying note 25 presents a summarized Statement of
income of the year, contemplating these effects.
25. Effects of exchange rate variation from
corporate foreign investments during the
year of 2007
J
BS S.A. is a listed company in the level New Market of
corporate governance since March 28, 2007 and have relevant
investments, direct and indirect, in several countries, mainly United
States of America and Argentina.
The investment in United States of America was done in July, 2007,
through the acquisition of JBS USA, an operation in the amount of
US$950 Million.
The investment in Argentina refers to the indirect control of Swift
Armour, involving an amount of 716 Million of Argentine pesos.
The amount of 356 million of the total amount was spent during the
year of 2007.
The American dollar and the Argentine peso were affected by the
high devaluation in relation Brazilian real in the period between
the date of the investment and the end of the year of 2007. The
devaluation in the American dollar to the Brazilian ral exchange rate
was 7,9% and the devaluation of the Argentine peso to the Brazilian
real exchange rate was 19,6%.
As a result, a high exchange rate variation in the investments
valuation mentioned above was brought about.
The Technical Pronouncement CPC 02 of the Committee of
Accounting Pronouncements, of November 9, 2007, which
deliberate about the effects of the exchange variation and the
conversion of the nancial statements, considered the importance
and needs of the harmonization of the accounting practices adopted
in Brazil with the international accounting pratices derived from IASB
-International Accounting Standard Board.
Considering that JBS S.A. became a listed company in the exercise
of 2007, and that, during the year of 2007 were made relevant
investments which generated high exchange rate variation, the
Administration understant that the international accounting pratices,
introduced in Brazil through the Technical Pronouncement above, that
should be obligatorily applicable only after December, 2008, could
be applicable in 2007, to better disclosure of the operating income.
The Company formulated a consult to the Brazilian Securities and
Exchange Commission (Comisso de Valores Mobilirios CVM)
to obtain authorization to apply, in advance, the procedures of
the Technical Pronouncement CPC 02, however, face to the legal
dead lines for publishing the nancial statements and realization of
the Ordinary Shareholders General Meeting -AGO, the Company
decided not to proceed with the anticipation, ofcially. However,
judging important, and to assist to what was recommended by CVM
in its Ofcial report to the Market emitted on January 14, 2008,
the Company publishes below how would presents the Statement of
Income for the year ended on December 31, 2007, adopting the
procedure of recognizing the exchange variation of those important
foreign investments directly in the shareholders equity, reecting the
better Companys operational performance.
"Pro Forma"
Net sales revenue 3,995,842 14,141,571
Cost of goods sold (2,915,674) (12,609,093)
GROSS INCOME 1,080,168 1,532,478
General, administrative and selling expenses (448,657) (1,062,224)
Financial income (expense), net (193,474) (243,083)
Equity in subsidiaries (199,370) -
Other operating expenses (141,906) (141,935)
Non-operating income (expense), net (171) 11,206
Income taxes (101,592) (104,903)
Minority interest (expense) income - 3,459
LOSS (5,002) (5,002)
AMOUNT OF EBITDA 688,137 591,061
26. Subsequent events
a) Acquisition of Inalca
In March 3, 2008, the Company concluded the acquisition of 50%
of the capital stock of Inalca S.p.A. (Inalca), controlled by Cremonini
-CRM.MI (Cremonini) by an amount of 225 Millions of Euros, based
on the Inalcas enterprise value of 600 Million Euros.
Inalca S.p.A. is the absolute leader in Italy and one of the main
European operators in the processing beef sector. It produces and
markets a complete range of fresh and frozen meat, packed under
vacuum or portioned in a protective atmosphere, canned meat,
ready-to-serve products, fresh and frozen hamburger, minced meats
and, pre-cooked products. With a slaughtering capacity of 3,500
head of cattle/day and processing 260,000 tons of meat/year (of
which 50,000 tons of hamburger) the company operates through a
production structure made of 6 plants in Italy, specialized by production
line, and through 9 foreign facilities in Europe, Russia and Africa.
The integral subsidiary Montana Alimentari S.p.A. (Montana) is
one of the main Italian operators on the production, marketing and
distribution of cured meats, snack and ready-toeat products with over
230 products. Owner of the historical brands Montana and IBIS,
the company features an industrial structure of 4 plants, specialized
by type of production and located in the area distinguished by
the Protected Denomination of Origin (P.D.O.) and Protected
Geographic Indication (P.G.I.) brands. The company is also one of
the main operators in the Italian canned meat market, with a market
share of 22%, and in pre-sliced products.
The Company and Cremonini have entered into a binding
preliminary contract for the formation of a strategic alliance between
JBS and Cremonini (Alliance). The Alliance will encompass the
whole beef production and beef by-products division of Cremonini.
Cremonini will have a put option according to which it will be able
to sell its 50% stake in Inalca to JBS at any time during the fourth and
tenth year from the closing of the transaction. The Put Option may
be exercised provided that Inalcas consolidated EBITDA is at least
equal to 60 million Euros. The price will be a multiple (between 5
and 10 times) of the consolidated EBITDA of Inalca. Reciprocal call
provisions are also provided for, in the event of change in control
of the respective majority shareholders. The Alliance will create
signicant product and sales channels synergies between JBS and
Cremonini, leaders in their respective markets: JBS is present with
production plants and distribution channels in South American, United
States and Australian markets, while Cremonini, through Inalca
S.p.A., is present in Europe, Russia and Africa.
For JBS, the transaction represents the opportunity to access, through
Inalca, new markets and clients, among which large multinationals
in the fast food sector, processed food producers, large retail chains
and foodservice companies. It will also provide JBS access to
Inalcas widely recognised state-of-the-art production technologies
and to higher added value products sold under the Montana brand.
For Cremonini, the transaction guarantees the privileged access to
the main world beef supply sources in addition to strengthening the
global control of the entire supply chain.
a) Acquisition contracts
Smitheld Beef
In March 4, 2008 the company executed a Stock Purchase
Agreement (Smitheld Beef Agreement), conrming the acquisition
of the totality of the shares representing the capital stock of Smitheld
Beef Processing, including full ownership of its subsidiary Five Rivers
Ranch Cattle Feeding (Five Rivers and, together with Smitheld Beef
Processing, Smitheld Beef). Smitheld Beef Processing is a company
incorporated in Delaware, United States of America, which includes
the entirety of the beef producing unit of Smitheld Foods, Inc. The
live cattle inventory is excluded from the Smitheld Beef acquisition,
however JBS will render the service of fattening the cattle. Closing of the
transaction contemplated in the Smitheld Beef Agreement is subject to
customary regulatory approvals and other customary closing conditions.
Smitheld Beef Processing holds (i) four beef slaughter plants,
located in Green Bay, Wisconsin, Plainwell, Michigan, Souderton,
Pennsylvania and Tolleson, Arizona; (ii) one grease producing
plant located in Elroy, Pennsylvania; (iii) one cattle feedlot unit in
South Charleston, Ohio; and (iv) one transportation division, with
approximately 120 refrigerated transportation vehicles. Smitheld
Beef Processing processes approximately 680 thousand tons of fresh
beef annually. Five Rivers owns ten cattle feedlot units with a one time
feeding capacity of 811,000 cattle units, located in the States of
Colorado, Idaho, Kansas, Oklahoma and Texas.
Pursuant to the Smitheld Beef Agreement, the purchase price
of Smitheld Beef is US$565 million which will be fully paid in
cash. The purchase price is subject to adjustments, pursuant to the
uctuation in the Smitheld Beefs working capital value. Additionally,
the Company intends to capitalize Five Rivers with an additional
US$200 million after the closing of the transaction.
National Beef
In March 4, 2008 the Company executed the Membership Interest
Purchase Agreement (National Beef Agreement), conrming the
acquisition of the totality of the membership interests representing
the entire ownership of National Beef, a limited liability company
organized under the laws of the state of Delaware, United States
of America, which slaughters and trades boxed beef, case-ready
beef and beef byproducts. Closing of the transaction contemplated
in the National Beef Agreement is subject to customary regulatory
approvals and other customary closing conditions.
National Beef holds (i) three beef slaughter plants, one located in
Dodge City, Kansas, one in Liberal, Kansas and the other in Brawley,
California; (ii) two case-ready beef processing plants, specializing
in products for sale to retailers destined to the end consumer, located
in Hummels Wharf, Pennsylvania, and Moultrie, Georgia; (iii) one
plant located in Kansas City, Kansas specializing in portioned
products for commercial establishments and end consumers; and
(iv) one transportation company, with approximately 1,200 vehicles
including refrigerated transportation and transportation of live stock,
headquartered in Liberal, Kansas.

Pursuant to the agreement, the Company shall pay f US$560
million to the members of National Beef, approximately US$465
million of which shall be paid in cash and approximately US$95
million of which shall be paid with JBS existing shares. At closing,
the Company shall assume the debt and other liabilities of National
Beef, resulting in an enterprise value of approximately US$970
million. JBS intends to use shares held in treasury to effect the
payment of the portion of the acquisition price to be paid with
shares, and, for this reason, JBS will seek the due authorization of the
Brazilian Securities and Exchange Commission (Comisso de Valores
Mobilirios), pursuant to the terms of the CVM Ruling No. 10, of
February 14, 1980.
Tasman
In March 4, 2008 the Company executed a Share Sale Agreement
(Tasman Agreement), conrming the acquisition, direct or indirectly,
of the Tasman operations, in Australia, with operations that slaughter,
process and trade of both beef and smalls (sheep, hogs and
calves). Closing of the transaction contemplated in the Tasman
Agreement is subject to customary regulatory approvals, and other
customary closing conditions.

Tasman owns (i) six slaughter plants, located in Brooklyn, Victoria
(cattle and smalls), Cobram, Victoria (smalls), Devonport, Tasmania
(cattle and smalls), Longford, Tasmania (cattle and smalls),
Yarrawonga, Victoria (cattle) and King Island, Tasmania (cattle);
and (ii) one cattle feedlot unit with a one time feeding capacity of
25,000 head of cattle and 45,000 head of sheep, located in
Yambinya, New South Wales.
The acquisition price of Tasman is AUS$160 million (approximately
US$150 million) and shall be fully paid in cash, considering an
enterprise value, consisting of an equity value of AUS$110 million
and a Tasman debt of AUS$50 million.
In order to fulll all the obligations established in the agreements of
the acquisitions of Smitheld, National Beef and Tasman, as well
as to the expenses incurred by the Company in those operations,
a subscription of new shares of the Company will be realized in
the approximate amount of R$2.550.000, at the emission price
of R$7,07 per share, according to the terms of the article 170,
paragraph 1st, interruption III, of the Law no. 6.404/76 (the
Brazilian Corporation Law). In an Extraordinary General Assembly
of the Company to deliberate about the capital increase, as well
as about the ratication of the celebrated contracts related to the
referred acquisitions and of the respective evaluation appraisal, in
the terms of the article 256, 1st, of the Law no. 6.404/76 (the
Brazilian Corporation Law).
12. Crditos
Credits
Coordenao Geral
Equipes da JBS S/A no Brasil: Comunicao Corporativa e
Relaes com Investidores
Redao
Comunicao Corporativa JBS e MZ Corporate
Communications
Edio e Traduo
MZ Corporate Communications
Projeto Grfco
MZ Design
Imagens
Banco de imagens da JBS
JupiterImages Corporation
Shutterstock
General Coordination
JBS S/A teams in Brazil: Corporate Communications and
Investor Relations
Writing
JBS Corporate Communications and MZ Corporate
Communications
Editing and Translation
MZ Corporate Communications
Graphics
MZ Design
Images
JBSs Image Bank
JupiterImages Corporation
Shutterstock

2007 Annual Report

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

2007 Annual Report

Transféré par

Droits d'auteur :

Formats disponibles

2 JBS S.A.

Relatrio Anual 2007 Annual Report

Black Angus, Swift

Natural Fresh Pork

Black Angus, Swift

Natural Fresh Pork

Vous aimerez peut-être aussi