MIRA INFORM REPORT

Report No. :	305792
Report Date :	31.01.2015

IDENTIFICATION DETAILS

Name :	JBS S/A

Registered Office :	Avenida Marginal Direita Do Tietê,500 3º Andar, Bloco I - Vila Jaguara

Country :	Brazil

Financials (as on) :	30.09.20104

Date of Incorporation :	10.12.1998

Legal Form :	Publicly Held Corporation

Line of Business :	Subject 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 são paulo, goiás, mato grosso, mato grosso do sul, rondônia, minas gerais, acre and rio de janeiro.

No. of Employee :	50000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	No complaints

Litigation :	Exist

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Brazil

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

BRAZIL ECONOMIC OVERVIEW

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth in 2011-13. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchange markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint.

Source : CIA

Company name

JBS S/A

ADDRESSES

MAIN ADDRESS:	AVENIDA MARGINAL DIREITA DO TIETÊ,500 3º ANDAR, BLOCO I - VILA JAGUARA
ZIP CODE/CITY:	05118-100 - SÃO PAULO/SP

PHONE:	11 3144-4000
FAX:	11 3144-4674
E-MAIL:	teodoro@jbs.com.br
WEB SITE:	www.friboi.com.br

BRANCHES:

ADDRESS:	RUA BARCELONA - S/Nº - IMPERIAL
ZIP CODE/CITY:	78200-000 CÁCERES/MT
PHONE:	65 3221-0400

ADDRESS:	AVENIDA DUQUE DE CAXIAS,7255 - VILA NOVA CAMPO GRANDE
ZIP CODE/CITY:	79105-000 CAMPO GRANDE/MS
PHONE:	67 2107-2500
CNPJ:	02.916.265/0004-02
STATE REGISTER:	28.310.399-0

ADDRESS:	RODOVIA BR 040 - KM 22,5 - CAIXA POSTAL: 04 - CHÁCARA SANTA RITA
ZIP CODE/CITY:	72800-000 LUZIÂNIA/GO
PHONE:	61 3615-9800

REQUESTED ADDRESS:	RODOVIA CE 253 - KM 11,8 S/N - ZONA RURAL
ZIP CODE/CITY:	62850-000 CASCAVEL/CE
PHONE:	85 3334-9000
FAX:	85 3334-9018

ADDRESS:	RODOVIA BR 153, S/Nº, KM,179 - BLOCO B - DISTRITO INDUSTRIAL
ZIP CODE/CITY:	16400-972 LINS/SP
PHONE:	14 3533-2041
CNPJ:	02.916.265/0089-00
STATE REGISTER:	419.137.060.111

ADDRESS:	RODOVIA ENGENHEIRO OSWALDO PACHECO DE LACERDA - KM 2,5 - Nº.,2262 - ANEXO I - PARQUE INDUSTRIAL
ZIP CODE/CITY:	87065-160 MARINGÁ/PR
PHONE:	44 3218-9900
CNPJ:	02.916.265/0046-61
STATE REGISTER:	90335393-79

ADDRESS:	RODOVIA BR 497 - KM 2,5 - ZONA RURAL
ZIP CODE/CITY:	38280-000 ITURAMA/MG
PHONE:	34 3411-9400
CNPJ:	02.916.265/0024-56
STATE REGISTER:	344257965.00-96

ADDRESS:	RUA JOAQUIM CARLOS,396 - BELENZINHO
ZIP CODE/CITY:	03019-000 SÃO PAULO/SP
PHONE:	11 2799-5987

ADDRESS:	RUA DÉCIO SPIRANDELLI CARVALHO,205 - DISTRITO INDUSTRIAL
ZIP CODE/CITY:	38402-342 UBERLÂNDIA/MG
PHONE:	34 3218-0800

ADDRESS:	AV. FRANCISCO GONÇALVES,417
ZIP CODE/CITY:	13.860-00 AGUAI/SP
PHONE:	19 3652-1000

ADDRESS:	VIA EXPRESSA JULIO BORGES DE SOUZA,4550 PARTE B - MUNICIPIO NOSSA SENHORA DA SAÚDE
ZIP CODE/CITY:	75503-970 ITUMBIARA/GO
PHONE:	64 3433-0100
CNPJ:	02.916.265/0098-92
STATE REGISTER:	10.470.383-0

ADDRESS:	ALAMEDA ARAGUAIA,62 BLOCO 2 - ALPHAVILLE/TAMBORE
ZIP CODE/CITY:	06.455-00 BARUERI/SP
PHONE:	11 4191-4114

ADDRESS:	RODOVIA RAPOSO TAVARES,8342 KM 18,5, SALA 4 E 5 - JARDIM BELA VISTA
ZIP CODE/CITY:	05576-200 SÃO PAULO/SP
PHONE:	11 3789-6714

LEGAL DATA

MAIN ACTIVITIES:

SLAUGHTERHOUSE.

LEGAL FORM:	PUBLICLY HELD CORPORATION

INCORPORATION DATE:	10/12/1998
REGISTER DATE:	16/12/1998
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	02.916.265/0001-60
STATE REGISTER:	116.625.121.118

SHARE CAPITAL:	R$ 21.561.112.078,68
LAST REGISTER OF CAPITAL:	14/08/2012

BOARD OF DIRECTORS:

WESLEY MENDONÇA BATISTA	PRESIDENT DIRECTOR
JEREMIAH ALPHONSUS O´CALLAGHAN	INVESTORS RELATIONS DIRECTOR
FRANCISCO DE ASSIS E SILVA	LEGAL DIRECTOR
ELISEO SANTIAGO PEREZ FERNANDEZ	ADMINISTRATIVE DIRECTOR

AUTHORIZED USE OF SIGNATURE

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

SHAREHOLDERS / PARTNERS:

FB PARTICIPAÇÕES S/A	40,931234%
BNDES PARTICIPAÇÕES S/A - BNDESPAR	24,587906%
BANCO ORIGINAL S/A	0,184656%
TREASURY SHARES	1,661009%
CAIXA ECONÔMICA FEDERAL	10,068898%
OTHERS	22,566297%

AFFILIATES / SUBSIDIARIES:

JBS EMBALAGENS METÁLICAS LTDA	99,00%
JBS HOLDING INTERNACIONAL S/A	100,00%
JBS GLOBAL A/S (DENMARK)	100,00%
MOURAN ALIMENTOS LTDA	100,00%
JBS CONFINAMENTO LTDA.	100,00%
JBS GLOBAL INVESTMENTS S.A.	100,00%
JBS USA, INC	100,00%
JBS SLOVAKIA HOLDINGS, S.R.O.	100,00%
INALCA JBS S.P.A.	50,00%
JBS ITALIA S.R.L.	100,00%
CJSC PRODCONTRACT	70,00%
BERTIN HOLDING GMBH	100,00%
NOVAPROM FOODS E INGREDIENTES LTDA	60,00%
S.A. FÁBRICA DE PRODUTOS ALIMENTÍCIOS VIGOR	99,06%
BIOLINS ENERGIA S.A.	100,00%
JBS TRADING USA, INC.
BERTIN USA CORPORATION
JBS GLOBAL BEEF COMPANY LDA.
JBS GLOBAL (UK) LIMITED
THE TUPMAN THURLOW CO.
GLOBAL BEEF TRADING SU LDA.
BEEF SNACKS DO BRASIL INDÚSTRIA E COMÉRCIO DE ALIMENTOS LTDA
BEEF SNACKS INTERNATIONAL BV.
JBS HU LTD
JBS AGROPECUÁRIA LTDA.
SAMPCO INC.
CASCAVEL COUROS LTDA
FG HOLDING I LTDA
FG HOLDING II LTDA.

COMPANY'S BACKGROUND

THE SUBJECT WAS ESTABLISHED ON DECEMBER 10, 1998 AS FRIGORÍFICO MC MOURAN LTDA TO BE ENGAGED IN THE SAID LINE OF BUSINESS. LATER IT ADOPTED THE ABOVE-MENTIONED NAME.

E "NOVO MERCADO" EGMENT, UNDER THE SYMBOL "JBSS3", AT THE PRICE OF R$8.00 PER SHARE, WITH PROCEEDS TOTALING R$1.6 BILLION. THE COMPANY HAS RECE

SINCE JANUARY 2008, THE COMPANY OWNS 50% OF INALCA S.P.A. SOCIAL CAPITAL, PRESENTLY KNOWN AS INALCA JBS S.P.A, (INALCA JBS). INALCA S.P.A. IS ITALY´S LEADING BEEF COMPANY AND ONE OF THE MAIN OPERATORS IN THE EUROPEAN 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. INALCA JBS OWNS SIX FACILITIES IN ITALY, SPECIALIZED BY PRODUCTION LINE, AND NINE FOREIGN FACILITIES IN EUROPE AND AFRICA.

IN MARCH 4, 2008, THE COMPANY EXECUTED THE MEMBERSHIP INTEREST PURCHASE AGREEMENT ("NATIONAL BEEF AGREEMENT"), TO ACQUIRE ALL 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. THE DEPARTMENT OF JUSTICE OF THE UNITED STATES FILED A COMPLAINT IN THE FEDERAL DISTRICT COURT CHALLENGING THE ACQUISITION. THE COMPANY LOOK FORWARD TO DEFENDING THIS MATTER IN COURT.

TASMAN HAD BEEN BOUGHT AND THE OTHER COMPANIES ARE WAITING FOR A GOVERNMENT AUTHORIZATION.

TRADING STYLE: JBS-FRIBOI.

THE GENERAL MEETING OF BERTIN AND A MEETING OF SHAREHOLDERS OF JBS HELD ON DECEMBER 30, 2009 OF BERTIN AND A MEETING OF SHAREHOLDERS OF JBS, APPROVED BY UNANIMOUS VOTE AND WITHOUT ANY EXCEPTION, THE INCORPORATION OF BERTIN AND JBS COUROS BY THE COMPANY AND BY THE SUBJECT, WITH THE CONSEQUENT EXTINCTION OF BERTIN AND JBS COUROS, FOR ALL PURPOSES OF LAW, AND THE INCORPORATION OF ALL THE ASSETS OF BERTIN AND JBS THE COMPANY, AND THE TRANSFER TO THE COMPANY, ALL GOODS RIGHTS AND OBLIGATIONS OF BERTIN AND JBS COUROS, INCLUDING REAL ESTATE.

IT WAS STATED THAT WITH THE TAKEOVER, AND THE CONSEQUENT EXTINCTION OF BERTIN AND JBS, THE SUBJECT SHALL BE THE LEGAL SUCCESSOR OF BERTIN AND JBS, FOR ALL PURPOSES OF LAW IN ALL THEIR RESPECTIVE ASSETS, RIGHTS AND OBLIGATIONS, INCLUDING PROPERTY, WITHOUT ANY INTERRUPTION OF THE ACTIVITIES CURRENTLY PERFORMED BY BERTIN AND / OR BY JBS, WHICH WILL BE, AS OF THIS DATE, FULLY PERFORMED BY THE COMPANY.

AS A RESULT, BUSINESS ADDRESS WAS RELOCATED FROM (AV. BRIGADEIRO FARIA LIMA 2012, 5º ANDAR, CJ. 53, SALA 02, SÃO PAULO/SP) TO THE PRESENT REGISTERED ONE.

ON DECEMBER 28, 2009 THE SUBJECT COMPLETED THE TRANSACTION BY WHICH ITS SUBSIDIARY JBS USA, THROUGH THE SUBSCRIPTION OF NEW SHARES, BECAME THE HOLDER OF SHARES REPRESENTING 64% OF THE TOTAL CAPITAL AND VOTING IN PPC, ESTABLISHED IN PITTSBURGH, TEXAS, USA, BY 800 MILLION AMERICAN DOLLARS, WHICH WERE PAID IN CASH.

PPC IS A COMPANY LOCATED IN DELAWARE IN THE U.S., BEING ONE OF THE LARGEST POULTRY PROCESSING FIRMS IN THE UNITED STATES, WITH OPERATION IN MEXICO AND IN PUERTO RICO. IT EXPORT CHICKEN FOR MORE THAN 90 COUNTRIES, THE MAIN PRODUCTS ARE IN-NATURA, REFRIGERATED WHOLE OR IN PIECES. THE MAIN CUSTOMERS ARE RESTAURANT CHAINS, FOOD PROCESSING, DISTRIBUTORS, SUPERMARKETS, WHOLESALERS, DISTRIBUTORS AND OTHER RETAIL, BUT FOR EXPORT TO EASTERN EUROPE (INCLUDING RUSSIA), FAR EAST (INCLUDING CHINA), MEXICO AND OTHER GLOBAL MARKETS.

ON DECEMBER 29, 2009, IT WAS APPROVED THE TAKEOVER OF THE BERTIN SHARES ISSUED BY THE COMPANY. IN CONSIDERATION, THE SHAREHOLDERS OF BERTIN INDIRECTLY RECEIVED THROUGH FB PARTICIPAÇÕES, THE COMPANY'S SHARES REPRESENTING APPROXIMATELY 28.7% OF THE SHARE CAPITAL OF THE COMPANY. LATER, ON DECEMBER 31, 2009, IT WAS APPROVED THE TAKEOVER OF BERTIN.

ON FEBRUARY 22, 2010, THE COMPANY ANNOUNCED THE ACQUISITION OF TATIARA AND TAKEOVER OF OTHER NEW ASSETS. THE COMPANY PAID AUD 30 MILLION FOR TATIARA.

IN JULY 2010 THE COMPANY ACQUIRED 70% OF THE COMPANY CJSC PRODCONTRACT BY TOTAL AMOUNT OF R$ 18.140.000.

ON JULY 13, 2010, THE COMPANY COMPLETED THE ACQUISITION OF TOLEDO GROUP LOCATED IN GENT, BELGIUM, WITH ENTERPRISE VALUE OF 11 MILLION EUROS. THE TOLEDO GROUP IS SPECIALIZED IN RESEARCH, DEVELOPMENT AND SALE OF CUSTOM PRODUCTS COOKED BEEF, FOR ESPECIALLY FOR END CONSUMERS IN WESTERN EUROPE.

ON SEPTEMBER 09, 2010, THE COMPANY COMPLETED THE ACQUISITION OF ROCKDALE BEEF. JBS HAS PAID AUD 40.5 MILLION (USD 37.3 MILLION APPROXIMATELY) FOR THE BUSINESS.

ON NOVEMBER 09, 2010, THE COMPANY PURCHASED 7 MILLION OF COMMON SHARES FROM PILGRIM INTERESTS LISTED ON NEW YORK STOCK EXCHANGE AS PPC - PILGRIM'S PRIDE. THE UNIT PRICE WAS U.S.$ 5.96 PER SHARE, TOTALING U.S. $ 41,720,000.00. THE ACQUIRED SHARES REPRESENTS 3.27% OF TOTAL AMOUNT OF SHARES ISSUED BY PPC, THUS INCREASING THE PARTICIPATION OF JBS ON PILGRIM'S PRIDE FROM 64% TO 67.27%.

ON MARCH 04, 2011 JBS SA HAS ANNOUNCED A TERMINATION AGREEMENT (DISTRATE) WITH THE CREMONINI GROUP, CLOSING DOWN 50% OF THEIR PARTICIPATION ON INALCA.

THE SUBJECT WAS ESTABLISHED ON DECEMBER 10, 1998 AS FRIGORÍFICO MC MOURAN LTDA TO BE ENGAGED IN THE SAID LINE OF BUSINESS. LATER IT ADOPTED THE ABOVE-MENTIONED NAME.

THE COMPANY BF PRODUTOS ALIMENTICIOS LTDA, CNPJ 04.109.847/0001-60 WAS TAKEN OVER BY THE SUBJECT COMPANY IN JANUARY 2004.

IN AUGUST 2005, JBS INDIRECTLY ACQUIRED 100% OF THE SWIFT-ARMOUR, THE BIGGEST PRODUCER AND EXPORTER OF BOVINE MEAT IN ARGENTINA, THROUGH ANOTHER HOLDING, JBS INTERNATIONAL HOLDING LTDA. AFTER THE ACQUISITION OF SWIFT, THE COMPANY WON A PUBLIC LICITATION TO LEASE THREE PRODUCING UNITS OF INDUSTRIALIZED MEAT HELD BY COMPAÑIA ELABORADORA DE PRODUTOS ALIMENTÍCIOS - CEPA, WHICH ALREADY WAS THE THIRD HIGHEST EXPORTER OF BOVINE MEAT IN ARGENTINA. IN THE END OF 2006, TWO OF THESE THREE LEASED UNITS HAD BEEN ACQUIRED BY THE JBS.

ON MARCH 31, 2006, FRIBOI TOOK OVER "J&F PARTICIPAÇÕES", WHICH WAS THE HOLDING OF "GRUPO JBS" AND ALTERED ITS FORM NAME TO "J&F PARTICIPAÇÕES LTDA."

ACCORDING TO GENERAL MEETING HELD ON MAY 01, 2006 THE COMPANY "FRIBOI LTDA" MERGED WITH JBS S/A (CNPJ 07.452.328/0001-98) AND THE SURVIVING COMPANY ADOPTED THE NAME JBS S/A UNDER THE TAXPAYER NUMBER 02.916.265/0001-60 AND REMAINED HEADQUARTERED AT THE CAPTIONBED ADDRESS.

RECENTLY, IN JANUARY 2007, THE COMPANY ACQUIRED 100% OF THE STOCK RELEASE OF THE NORTH AMERICAN COMPANY "SB HOLDINGS" AND ITS SUBSIDIARIES, TUPMAN THURLOW, ASTRO SALES AND AUSTRAL FOODS, WHICH IS ONE OF THE BIGGEST WHOLESALERS OF INDUSTRIALIZED PRODUCTS OF BOVINE MEAT IN THE NORTH AMERICAN MARKET AND HOLDER OF TRADEMARKS "HEREFORD", "MANCOPRIDE" AND "RIP N' READY". THE VALUE OF THE ACQUISITION WAS OF US$ 11,9 MILLIONS. THE CONSOLIDATED NET REVENUE OF SB HOLDINGS IN 2006 WAS OF US$ 55,7 MILLIONS.

ON MARCH 28, 2007, IN ACCORDANCE TO THE TERMS OF CVM INSTRUCTION 358, OF JANUARY 3, 2002, AND ARTICLE 53 OF CVM INSTRUCTION 400, OF DECEMBER 29, 2003, JBS S.A. INITIATED A PUBLIC OFFERING FOR A PRIMARY AND SECONDARY DISTRIBUTION OF 200,000,000 OF IT COMMON SHARES, REPRESENTING 23.5% OF ITS CAPITAL, BEING 150,000,000 MILLION SHARES RELATED TO THE PRIMARY OFFER AND 50,000,000 SHARES RELATED TO THE SECONDARY OFFER, ALL OF THEM LISTED AT THE SÃO PAULO STOCK EXCHANGE (BOVESPA) IN THE "NOVO MERCADO" EGMENT, UNDER THE SYMBOL "JBSS3", AT THE PRICE OF R$8.00 PER SHARE, WITH PROCEEDS TOTALING R$1.6 BILLION. THE COMPANY HAS RECEIVED A TOTAL OF R$1.2 BILLION AS PROCEEDS FROM THE PRIMARY OFFER, BEFORE THE DEDUCTION OF COMMISSIONS AND RELATED EXPENSES. JBS WILL USE THE MAJORITY OF THE NET PROCEEDS FROM THIS OFFERING TO: (I) ADDITIONAL INVESTMENTS IN, AND PURCHASE OF EQUIPMENT FOR, ITS PLANTS IN ORDER TO INCREASE THEIR OPERATING CAPACITY; (II) THE ACQUISITION OF COMPANIES OR ASSETS THAT HAVE NOT YET BEEN IDENTIFIED IN THE BEEF INDUSTRY; AND (III) STRENGTHENING WORKING CAPITAL. DECISIONS AS TO THE USE OF PROCEEDS FOR OPERATING CAPACITY EXPANSION OR FOR ACQUISITIONS WILL ONLY BE MADE AFTER ECONOMICAL AND LEGAL EVALUATIONS ARE MADE ON THE INVESTMENT OPPORTUNITIES IN ORDER TO IDENTIFY HOW THEY WILL ADD VALUE TO THE COMPANY'S SHAREHOLDERS.

LAST YEAR 50% OF INALCA WAS ACQUIRED, IT IS ONE OF THE BIGGEST PRODUCER OF MEAT IN EUROPE, AND NOW IT HAS MORE THAN 10 STORES IN ITALY.

TASMAN HAD BEEN BOUGHT AND THE OTHER COMPANIES ARE WAITING FOR A GOVERNMENT AUTHORIZATION.

TRADING STYLE: JBS-FRIBOI.

AS A RESULT, BUSINESS ADDRESS WAS RELOCATED FROM (AV. BRIGADEIRO FARIA LIMA 2012, 5º ANDAR, CJ. 53, SALA 02, SÃO PAULO/SP) TO THE PRESENT REGISTERED ONE.

ON FEBRUARY 22, 2010, THE COMPANY ANNOUNCED THE ACQUISITION OF TATIARA AND TAKEOVER OF OTHER NEW ASSETS. THE COMPANY PAID AUD 30 MILLION FOR TATIARA.

IN JULY 2010 THE COMPANY ACQUIRED 70% OF THE COMPANY CJSC PRODCONTRACT BY TOTAL AMOUNT OF R$ 18.140.000.

ON SEPTEMBER 09, 2010, THE COMPANY COMPLETED THE ACQUISITION OF ROCKDALE BEEF. JBS HAS PAID AUD 40.5 MILLION (USD 37.3 MILLION APPROXIMATELY) FOR THE BUSINESS.

ON MARCH 04, 2011 JBS SA HAS ANNOUNCED A TERMINATION AGREEMENT (DISTRATE) WITH THE CREMONINI GROUP, CLOSING DOWN 50% OF THEIR PARTICIPATION ON INALCA.

ON APRIL 2011 THE COMPANY ACQUIRED 70% OF THE COMPANY LLC LESSTOR TENDO BY TOTAL AMOUNT OF R$ 13.461.000.

THE COMPANY TOOK OVER NOVAPRIM FOOD INGREDIENTES LTDA.

ON AUGUST 18, 2011 HEADQUARTERS WAS RELOCATED FROM "AV. BRIGADEIRO FARIA LIMA, 2.391, 2º ANDAR, CONJUNTO 22, SALA 2, JARDIM PAULISTANO, CEP 01452-000 - SÃO PAULO/SP" TO THE CAPTIONED ADDRESS.

ON DECEMBER 27, 2012 THE COMPANY TOOK OVER CASCAVEL COUROS LTDA.

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

IN MARCH 2014 THE COMPANY ACQUIRED SUL VALLE ALIMENTOS LTDA.

FURTHER DETAILS ARE SO FAR NOT KNOWN.

PUBLIC INFORMATION

PROTESTS:

91 PROTESTS,TOTAL AMOUNT R$ 199.772,73

DATE OF FIRST PROTEST: 10/2011 R$ 860,00

DATE OF HIGHEST PROTEST: 12/2014 R$ 30.480,54

DETAILS OF LATEST PROTESTS:

NOTARY OFFICE:	DATE:	VALUE:
1º CARTORIO DE AMARGOSA/BA	01/2015	R$ 1.120,00
1º CARTORIO DE LINS/SP	01/2015	R$ 1.185,20
CARTORIO DE ITUIUTABA/MG	01/2015	R$ 1.250,95
2º CARTORIO DE LINS/SP	01/2015	R$ 1.185,19
1º CARTORIO DE LINS/SP	01/2015	R$ 898,66

LAWSUITS:
	DATE:	COURT OF LAW:

12	STATE LAWSUITS	26/11/14	VARA DE SP-LINS
22	FEDERAL LAWSUITS	13/06/14	12ª VARA DE G-GOIÂNIA
3	MUNICIPAL LAWSUITS	22/09/14	VARA DE SP-VOTUPORANGA
4	EXECUTIVE LAWSUITS	26/08/14	38ª VARA DE SP-SAO PAULO/CENTRAL

(RESEARCH DATE: 29/01/2015)

FINANCIAL INFORMATION

GENERAL BALANCE SHEETS AS OF 30/09/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

ASSETS
CURRENT:	30/09/2014	31/12/2013	31/12/2012

CASH AND BANKS	3.224.922	1.789.254	1.014.160
CLIENTS	4.118.470	4.087.073	2.753.737
INVENTORY	2.966.830	2.414.148	1.940.192
RECOVERABLE TAXES	1.262.134	1.275.614	1.309.995
PRE PAID EXPENSES	27.916	10.171	9.648
INVESTMENTS	4.042.386	3.434.724	2.550.824
OTHER CREDITS	593.401	309.988	273.332
	----------------	----------------	----------------
TOTAL CURRENT ASSETS	16.236.059	13.320.972	9.851.888

LONG-TERM RECEIVABLES:

RECOVERABLE TAXES	759.055	682.571	641.957
INTERCOMPANY CREDITS	2.498.101	1.784.948	808.062
GUARANTEE DEPOSITS	395.578	294.254
OTHER CREDITS			206.137
	----------------	----------------	----------------
TOTAL LONG-TERM RECEIVABLES	3.652.734	2.761.773	1.656.156

FIXED ASSETS:

INVESTMENTS	9.225.197	11.594.353	6.118.876
FIXED ASSETS	10.315.374	9.392.336	8.767.637
INTANGIBLE	9.547.787	9.547.037	9.531.964
	----------------	----------------	----------------
TOTAL FIXED ASSETS	29.088.358	30.533.726	24.418.477
	================	================	================
TOTAL ASSETS	48.977.151	46.616.471	35.926.521

LIABILITIES:
CURRENT:	30/09/2014	31/12/2013	31/12/2012

LOANS AND FINANCING	8.316.509	6.839.122	5.355.774
SUPPLIERS	1.267.921	1.371.205	1.000.273
TAX LIABILITIES	29.678	100.441	98.513
SOCIAL / LABOR OBLIGATIONS	408.582	282.300	263.228
OTHER DEBTS	719.814	851.699	564.110
	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	10.742.504	9.444.767	7.281.898

LONG TERM LIABILITIES:

LOANS AND FINANCING	13.408.373	13.753.849	6.795.885
PROVISIONS	174.515	164.051	155.156
DEFERRED TAXES	948.810	1.090.973	825.781
OTHER	127.228	85.877	257.254
FISCAL OBLIGATIONS		125.166
	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	14.658.926	15.219.916	8.034.076

NET EQUITY:

SHARE CAPITAL	21.506.247	21.506.247	21.506.247
CAPITAL RESERVES	-81.082	-297.526	-487.273
REVALUATION RESERVES	89.007	92.227	96.847
PROFIT RESERVES	2.705.084	2.705.084	1.993.697
OTHER COMPREHENSIVE INCOME	115.688	132.787	92.999
CUMULATIVE TRANSLATION ADJUSTMENT	-2.179.572	-2.187.031	-2.591.970
ACCRUED PROFIT (LOSS)	1.420.349
	----------------	----------------	----------------
TOTAL NET EQUITY	23.575.721	21.951.788	20.610.547
	================	================	================
TOTAL LIABILITIES	48.977.151	46.616.471	35.926.521

PROFIT AND LOSS ACCOUNTS AS OF 30/09/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

	30/09/2014	31/12/2013	31/12/2012

NET SALES	18.637.330	20.975.955	16.405.822
(-) COST OF SOLD GOODS	14.449.358	15.808.619	12.093.878
	----------------	----------------	----------------
GROSS PROFIT	4.187.972	5.167.336	4.311.944
OPERATING REVENUE (EXPENSE)	-611.733	-2.326.387	-3.376.468
FINANCIAL REVENUE(EXPENSE)	-2.312.361	-1.648.833	-108.269
	----------------	----------------	----------------
OPERATIONAL PROFIT (LOSS)	1.263.878	1.192.116	827.207
CONTRIBUTION/INCOME TAX	153.251	-265.209	-108.269
	----------------	----------------	----------------
NET PROFIT (LOSS)	1.417.129	926.907	718.938

RATIOS:

30/09/2014

31/12/2013

31/12/2012

QUICK RATIO	1,24		1,15		1,09
CURRENT RATIO	1,51		1,41		1,35
ACCOUNTS RECEIVABLE TURNOVER	4,53	TIMES	5,13	TIMES	5,96	TIMES
DAYS' SALES IN RECEIVABLES	59,66	DAYS	70,14	DAYS	60,43	DAYS
INVENTORY TURNOVER	4,87	TIMES	6,55	TIMES	6,23	TIMES
ACCOUNTS PAYABLE PERIOD	23,69	DAYS	31,23	DAYS	29,78	DAYS
RETURN ON ASSETS	,38	TIMES	,45	TIMES	,46	TIMES
SALES TURNOVER ON NET EQUITY	,79	TIMES	,96	TIMES	,80	TIMES
NET WORTH TIE-UP	,44		,43		,43
INDEBTEDNESS	1,08		1,12		,74
EQUITY RATIO	48,14	%	47,09	%	57,37	%
WORKING CAPITAL RATIO	51,14	%	41,04	%	35,29	%
GENERAL SOLVENCY	1,93		1,89		2,35
RETURN ON NET EQUITY	6,01	%	4,22	%	3,49	%
RETURN ON SALES (PROFIT MARGIN)	7,60	%	4,42	%	4,38	%
GROSS PROFIT MARGIN	22,47	%	24,63	%	26,28	%
OPERATIONAL RESULT	6,78	%	5,68	%	5,04	%
SALES TURNOVER ON LIABILITIES	1,73	TIMES	2,22	TIMES	2,25	TIMES
FOREIGN CURRENCY ON ASSETS
FOREIGN CURRENCY ON LIABILITIES

EXCHANGE RATE:
US$ 1,00 = R$ 2,59	- OFFICIAL RATE ON 29/01/2015
US$ 1,00 = R$ 2,45	- OFFICIAL RATE ON 30/09/2014
US$ 1,00 = R$ 2,34	- OFFICIAL RATE ON 31/12/2013
US$ 1,00 = R$ 2,04	- OFFICIAL RATE ON 31/12/2012

COMMENTS ON THE FINANCIAL INFORMATION:

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

THE ANNUAL FIGURES FOR 2013 SHOW A NORMAL FINANCIAL STANDING. IT HAD GOOD LIQUIDITY RATIOS AND POSITIVE WORKING CAPITAL, AS WELL AS ACCEPTABLE LEVEL OF INDEBTEDNESS. IT ALSO SHOWED GROWING SALES AND PROFITABILITY.

THE QUARTERLY FIGURES FOR SEPTEMBER 2014 SHOW THAT THE INDEBTEDNESS KEEPS SOMEHOW HIGH BUT THE LIQUIDITY IS GOOD. IN ADDITION IT SHOWS GROWING SALES TREND AND THE OPERATIONS ARE PROFITABLE.

IT IS WORTH TO COMMENT THAT THE SUBJECT HAS A HIGH SCALE OF ACTIVITIES AND A HUGE FINANCIAL POWER, THEREFORE IT IS NOT LIKELY TO FACE FINANCIAL PROBLEMS.

REAL ESTATE:

OWNED PREMISES ARE VALUED AT R$ 3.842.837.000,00

VEHICLES:

OWNED VEHICLES ARE VALUED AT R$ 395.774.000,00

MACHINES:

OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 3.443.718.000,00

INSURANCE

AS OF SEPTEMBER 30, 2014, THE MAXIMUM INDIVIDUAL LIMIT FOR COVERAGE WAS R$ 150.000.000,00. THIS COVERAGE INCLUDES ALL TYPES OF CASUALTIES.

FOR THE INDIRECTLY CONTROLLED COMPANY ESTABLISHED IN ARGENTINA, THE INSURANCE HAS THE SAME COVERAGE AS DESCRIBED ABOVE. THE COVERAGE WAS VALUED AT US$ 32.000.000,00.

FOR THE DIRECTLY CONTROLLED COMPANY ESTABLISHED IN USA "JBS USA", THE INSURANCE HAS THE SAME COVERAGE AS DESCRIBED ABOVE. THE COVERAGE WAS VALUED AT US$ 250.000.000,00.

FOR THE JBS FOODS S.A., THE INSURANCE COVERAGE HAS THE SAME CHARACTERISTICS AS ABOVE, HOWEVER, THE MAXIMUM INDEMNITY VALUE REACHED R$ 293 MILLION AS OF JUNE 30, 2014.

BANKING REFERENCES

	BRANCH/PHONE:
BANCO BRADESCO S/A	0012
BANCO ITAÚ S/A	61 3322-0032
BANCO ITAUBANK S/A	62 3243-4317
BANCO DO BRASIL S/A	61 3961-2240
BANCO SANTANDER (BRASIL) S/A	31 3273-2005

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK"). DATE RESEARCHED JANUARY 29, 2015.

ACTIVITIES COMMENTS

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 SÃO PAULO, GOIÁS, MATO GROSSO, MATO GROSSO DO SUL, RONDÔNIA, MINAS GERAIS, ACRE AND RIO DE JANEIRO.

THE COMPANY DISTRIBUTES ITS PRODUCTS THROUGH CENTERS OF DISTRIBUTION LOCATED IN THE STATES OF SÃO PAULO AND MINAS GERAIS.

IMPORT AND EXPORT:

IMPORTS FROM:

NOT AVAILABLE.

EXPORTS TO:

RUSSIA.

MAIN CLIENTS:

DOMESTIC CLIENTS:		PHONE:
A ANGELONI & CIA LTDA		48 3461-7514
BF PRODUTOS ALIMENTÍCIOS LTDA		17 3321-4400
BMZ COUROS LTDA		67 3391-1510
CARREFOUR COMÉRCIO E INDÚSTRIA LTDA		11 3779-6000
IRMÃOS BRETAS FILHOS E CIA LTDA		15 3205-9961
SADIA S/A		11 3649-3595
SONAE DISTRIBUIÇÃO BRASIL S/A
WAL MART BRASIL LTDA		11 3685-5842

STAFF:

THE COMPANY HAS: 50000 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS A WELL-ESTABLISHED COMPANY, OPERATING SINCE 1998. IT IS A LEADING COMPANY IN ITS LINE OF BUSINESS OPERATING WITH A HIGH AND GROWING SCALE OF ACTIVITIES AS WELL AS AN EXCELLENT REPUTATION.

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

MOST OF THE SUPPLIERS, WHICH PROVIDED INFORMATION REPORTED PROMPT PAYMENTS, IT MAY BE NOTED SUBJECT HAS VERY GOOD TRADE BEHAVIOR.

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUITS DO NOT AFFECT THE COMPANY'S TRADE REPUTATION.

OUR INVESTIGATION THROUGH THE PUBLIC SHOWED SOME DETRIMENTAL FILES REGISTERED AGAINST THE SUBJECT BUT DUE TO THE SUBJECT'S HIGH FINANCIAL STRENGTH AND HIGH SCALE OF OPERATIONS THE DETRIMENTAL FILES DO NOT AFFECT ITS TRADE REPUTATION.

MAIN SUPPLIERS:

DOMESTIC SUPPLIERS:
ABATEDOURO SÃO SALVADOR LTDA
ADOLFO AUFLERO		65 3244-1354
ATACADÃO DIST. COMÉRCIO INDÚSTRIA LTDA
BRASFRIGO S/A		47 3248-1033
CIA BRASILEIRA DE PETRÓLEO IPIRANGA
CRYOVAC BRASIL LTDA
CYKLOP DO BRASIL EMBALAGENS S/A		11 3833-2931
EMBALO EMBALAGENS LÓGICAS LDA		62 3316-1066
KIM FOMENTO MERCANTIL LTDA
METALÚRGICA MATARAZZO S/A
NELSON JUNQUEIRA JUNIOR		62 3215-2828
PECUÁRIA DAMHA LTDA
PROMOM INDÚSTRIA E COMÉRCIO LTDA ME		18 3722-7712
RIGESA CELULOSE, PAPEL E EMBALAGENS LTDA		11 3707-4000

PAYMENT HISTORY:

110 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 79.846.703,00

AMOUNT OF INVOICES PAID: 5878

TOTAL OF PROMPT PAYMENTS: 98,0%

TOTAL OF DELAYED PAYMENTS: 2,0%

HIGHEST INVOICE: R$ 1.220.741,00

HIGHEST CREDIT: R$ 1.220.741,00

OUTSTANDING INVOICES DUE WITHIN THE NEXT 60 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	15	77	R$ 477.062,00
DUE WITHIN 60 DAYS	4	23	R$ 43.809,00

FINAL OPINION

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS SINCE 1998. UP TO DATE IT HAS A GOOD FINANCIAL STANDING, A CLEAR TRADE HISTORY AND GOOD PAYMENT PERFORMANCE.

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

DUE TO THE SUBJECT'S HUGE FINANCIAL POWER A MAXIMUM CREDIT WILL NOT BE FIXED. THE COMPANY IS CONSIDERED FULLY CREDITWORTHY FOR HIGH AMOUNTS OF CREDIT.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.76
UK Pound	1	Rs.93.13
Euro	1	Rs.70.03

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	ANK

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.