Marfrig Global Foods Novem ber 2 0 1 6 Disclaim er This material - - PowerPoint PPT Presentation

Marfrig Global Foods

Novem ber 2 0 1 6

2

Disclaim er

This material is a presentation of general information about Marfrig Global Foods S.A. and its consolidated subsidiaries (jointly the “Corporation”) on the date hereof. The information is presented in summary form and does not purport to be complete. No representation or warranty, either expressed or implied, is made regarding the accuracy or scope of the information herein. Neither the Company nor any

• f its affiliated companies, consultants or representatives undertake any

responsibility for any losses or damages arising from any of the information presented or contained in this presentation. The information contained in this presentation is up to date as of September 30, 2016, and, unless stated

• therwise, is subject to change without prior notice. Neither the Corporation

nor any of its affiliated companies, consultants or representatives have signed any commitment to update such information after the date hereof. This presentation should not be construed as a legal, tax or investment recommendation or any other type of advice. The data contained herein were obtained from various external sources and the Corporation has not verified said data through any independent source. Therefore, the Corporation makes no warranties as to the accuracy or completeness of such data, which involve risks and uncertainties and are subject to change based on various factors. This presentation includes forward-looking statements. Such statements do not constitute historical fact and reflect the beliefs and expectations of the Corporation’s management. The words “anticipates,” “hopes,” “expects,” “estimates,” “intends,” “projects,” “plans,” “predicts,” “projects,” “aims” and

• ther similar expressions are used to identify such statements.

Although the Corporation believes that the expectations and assumptions reflected by these forward-looking statements are reasonable and based on the information currently available to its management, it cannot guarantee results or future events. Such forward-looking statements should be considered with caution, since actual results may differ materially from those expressed or implied by such statements. Securities are prohibited from being

• ffered or sold in the United States unless they are registered or exempt from

registration in accordance with the U.S. Securities Act of 1933, as amended (“Securities Act”). Any future offering of securities must be made exclusively through an offering memorandum. This presentation does not constitute an

• ffer, invitation or solicitation to subscribe or acquire any securities, and no

part of this presentation nor any information or statement contained herein should be used as the basis for or considered in connection with any contract

• r commitment of any nature. Any decision to buy securities in any offering

conducted by the Corporation should be based solely on the information contained in the offering documents, which may be published or distributed

• pportunely in connection with any security offering conducted by the

Company, depending on the case.

3

Agenda

฀ Marfrig Overview ฀ Business Units: Differentials and Strategy ฀ Keystone Foods ฀ Beef ฀ Global scenario ฀ 3Q16 Financials ฀ Why Marfrig?

4

Marfrig Track Record

2007 2008 2009 2010 2011 2012 2013 2014 2015

Marfrig IPO “Novo Mercado” Moy Park Seara Keystone

• Growth based on acquisitions
• International footprint
• High Leverage

Seara Sale

Optimization of organizational structure without loosing global footprint

Moy Park Sale

• “Focus to Win”
• “Productivity agenda”
• Operational improvements at BU’s
• Liability management and debt

reduction Diversified geographic presence in animal protein, serving the retail and food service channels One of the world’s top beef producers and one of South America’s largest lamb suppliers One of the world’s largest suppliers of processed food to food service

Major Acquisitions

5

Strategic Actions

VALUE LEVERAGE

Continuous operational im provem ent and increased operating cash flow Adjusting the capital structure and reducing borrow ing costs Profitable grow th and global leadership in foodservice

FOCUS TO W I N

ACTI ONS

GREATER VALUE TO SHAREHOLDERS

• Searching for

productivity + synergies

• Stream lining Beef

Brazil production units

• I m proving Brazil

sales m ix

• Selling non core

assets

• Closing of Moy Park

sale

• I m plem enting
• ngoing Liability

Managem ent

• Prioritizing organic

grow th

• pportunities at

Keystone

• Consolidating
• perating

im provem ents at Beef

6

R$ billion* Market Cap: 3.5 Enterprise Value: 9.5

Production Plants Distribution Centers Commercial Units

commercial, production and distribution units

47

Presence in countries in the Americas, Europe, Asia and Oceania

12

Serving global retail and food chains in close to countries 100

Marfrig’s strategy is to continue growing globally in value- added protein products, increasing its focus

• n the food service

segment, and taking advantage

• f its highly

competitive and geographically diversified basis to supply beef from South America

* As of November, 2016

Marfrig at a glance

7

Corporate Profile

฀ Revenue Breakdow n – 9 M1 6

% by Business % by Product

฀ Net Revenue ( 1)

( R$ billion) Notes: (1) historical figures include continued and discontinued operations.

% by Currency

1.0 1.3 1.4 2.1 3.3 6.2 9.6 15.9 21.9 23.7 18.8 15.2 18.9 14.3

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9M16

50% 35% 15%

Keystone USA & APMEA Beef Brazil Beef International

56% 37% 7%

Processed Fresh Beef Other

53% 26% 21%

US$ Real Other

Global Scenario Highlights

9

1.7 9.5 2 4 6 8 10 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017E China Egypt Iran Malaysia Saudi Arabia

417 210 105 205 168 663 213 148 237 178 825 240 155 240 178 950 255 165 245 180

China Chile Iran Malaysia Saudi Arabia 2014 2015 2016E 2017E

฀

Beef consumption growth is expected to be driven by emerging markets, especially in Asia and Middle East, where beef demand should remain robust and is expected to be supported by strong growth in imports

฀

China has become a relevant beef consumer, going from 1 million tons/ year in 1990 to more than 7 million tons/ year in 2015, representing 13% of world consumption, and growth is expected to continue

Source: USDA (updated October 25, 2016)

Selected Countries Beef I m ports

Thousand Tons

Selected Countries Beef Consum ption

Million tons/ year

CAGR 1990-2015: 6.9% 16% of world total

Global Beef Grow th

128% 21% 57% 20% 7%

10

South Am erica Beef Export Platform

Source: USDA (updated October 25, 2016)

Beef Cattle Herd Beef Production

(million heads) (million tons)

฀

Brazil, Argentina and Uruguay together form the world's largest beef production region with the greatest growth potential

• Extensive production with strategic use of feedlot operations
• Excellent sanitary conditions with tracking
• Abundance of land, water and labor
• Management expertise, well adapted breeds and growing use of genetic

enhancement

฀

Region is already a major global beef supplier, mainly Brazil and Uruguay

Beef Exports

(million tons)

50 100 150 200 250 1992 1997 2002 2007 2012 2017E Argentina Australia Brazil US Uruguay 5 10 15 1992 1997 2002 2007 2012 2017E Argentina Australia Brazil US Uruguay 0.0 0.5 1.0 1.5 2.0 1992 1997 2002 2007 2012 2017E Argentina Australia Brazil US Uruguay

11

Global Poultry Grow th

1.5% 2.3% 2.7%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Developed World Developing

฀

Poultry is the fastest growing protein in developed and emerging markets

• Growth in developing markets is expected to be 2x the growth in developed markets

฀

Strong consumer demand due to poultry’s lean / low fat profile, adaptability / versatility in preparation and relative cost advantage versus other proteins

Source: USDA (updated October 25, 2016), National Chicken Council and OECD-FAO Agricultural Outlook 2014-2023 via Watt Global Media

Poultry Meat Consum ption

2014-2023 CAGR %

U.S. Chicken Consum ption

Million Tons 7.7 15.7 5 7 9 11 13 15 17 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016E 2017E

12

Global QSR I ndustry

฀

The Global Fast Food market is expected to grow from a US$635 billion market in 2013 to US$860 billion market in 2018, a 6.2% CAGR

฀

North America is the largest market in the industry and is projected to remain the largest by 2018

฀

Asia-Pacific share of the global market is set to rival North America in size by 2018

Source: Euromonitor International, November 2014

Global Fast Food Market (2018E US$860 billion) Global Fast Food Market 2013 – 2018 CAGR %

35% 9% 3% 12% 2% 34% 4%

North Am erica Lat in Am erica East ern Europe Western Europe Australasia Asia Pacific Middle East & Africa

1 1 .6 % 1 0 .3 % 7 .4 % 7 .2 % 6 .2 % 4 .9 % 4 .4 % 1 .5 %

Middle East & Africa Eastern Europe Asia-Pacific Latin America Global North America Western Europe Australasia

Keystone Foods

14

Keystone | Profile

฀

Diversified food com pany focused

• n

value- added protein to the Food Service industry ( US/ APMEA)

• Revenues of US$2.0 billion in 9M16
• Focus on QSR
• Poultry, beef, pork, fish and other (bakery, etc.)

฀

Key partner of several leading brands

• 40 year relationship with McDonald’s
• Strategic supplier

for Wendy’s, Subway, Iceland Foods, Campbell’s amongst other

฀

Poultry vertical integration in the U.S. covering 7 0 % +

• f the supply, largely through contract

grow ers

• Global slaughtering capacity of over 4.5 million head per

week

% by Market % by Protein 71% 29%

USA APMEA

฀ Revenue Breakdow n – 9 M1 6

% by Client 76% 19% 5%

Poultry Beef Other

57% 43%

McD Key Accounts/Other

15

Keystone | Production Structure

United States APMEA

 3 integrated poultry complexes and 7 processing plants  1 R&D facility  198 million birds/ year  390,000 tons of processed food/ year  Countries: Australia, China, Malaysia, South Korea and

Thailand

 Further processing plants (5 multi-protein, 3 poultry and 1

beef) and 1 primary processing plant

 2 innovation centers  55 million birds/ year  195,000 tons of processed food/ year

Other Processed food Slaughtering Other Processed food Slaughtering

16

Keystone US | Vertical I ntegration

Supply Control Keystone sources 70% +

• f its U.S. poultry needs

from vertically integrated system; purchases remainder from the market Keystone Farm System 1 9 Pullet Farm s 3 owned by Keystone 6 1 Breeder Farm s 1 owned by Keystone 2 9 6 Broiler Farm s 1 owned by Keystone

17

Keystone US | Poultry Key Categories

Tenders, filets, patties, wings and nuggets Largest product type Primarily marketed to QSR chains like McDonald’s, Wendy’s Diced chicken, strips, filets, patties, wings Second largest product type Marketed to branded consumer companies like Campbell’s, Nestlé and ConAgra Frozen Food

Ready-to-Cook Par Fried Poultry Fully Cooked/ Frozen Poultry

Whole chickens without giblets, 8-piece cut-up Includes other value-added marinated products for QSRs like Zaxby’s Marketed to major retailers and club stores like Publix, Sam’s Club and Wegmans

Fresh/ Deli Rotisserie

18

Keystone US | Beef & Fish Key Categories

Leading supplier to McDonald’s Keystone has the largest beef patties plant in US Strategic supplier to McDonald’s

Beef Patties Fish Patties

19

Keystone APMEA | Key Categories

Bacon produced in non-Halal facilities; also manufacture Halal substitutes for bacon Fish patties and bakery items Chicken Nugget Chicken Patty Chicken Strips Middle Wing Wing Stick Spicy Wing Broad range of chicken products Primarily marketed to western QSR chains and local APMEA clients Beef produced all facilities Products marketed to western QSRs and local APMEA clients

Poultry Products Beef Products Pork, Fish & Other

Beef Patties Beef Patties Fish Patties Cheesecake Halal Bacon Substitute

20

Keystone | Strategic Goals

Leverage Global Poultry Dem and Key Account Penetration Geographic Expansion

21

264 281 327 430 531 561 681 754

2009 2010 2011 2012 2013 2014 2015 3Q16LTM

Key Accounts | Accelerate Grow th

฀

Significant business with global brand players in the QSR, foodservice, retail and industrial channels

Key Account Further Processing and Value Added Sales (US$ million) Select Key Accounts

APMEA USA

22

APMEA | Differentiated Positioning

฀

Keystone is well positioned to capture growth in the region with operations in the high-growth markets

Slaughtering Processing Others

 local production  over 20 years present in the region  food safety acknowledgement in the

industry

도니버거숙대점-Doni Burger

Select Clients

23

APMEA | Differentiated Positioning

Local QSR QSR Global Food Service Local Food Service Retail Exports

China Complete country coverage Global QSR, local QSR, Food Service, Retail Thailand Export-oriented, Japan, UK, EU, Singapore Retail, Food Service, QSR South Korea Domestic focus Global QSR, local food service Malaysia Halal hub for the region Malaysia, Middle East, Singapore Retail & export, Halal certification Australia Beef focus Global QSR

24

Food Safety & Quality | Strong Reputation

Food safety expectations continue to increase around the world, and Keystone’s program is among the best

Recognized Leadership in Food Safety Leader in Anticipatory I ssue Managem ent Award Winning Product Quality

25

Keystone | Other Differentials

Research & Developm ent of New Product / I nnovation

฀

Partnership with our customers to develop customized and innovative food solutions

฀

A USDA-inspected, state-of-the-art R&D facility in the U.S.

฀

Establishing 2 innovation centers in Shanghai (China) and Thailand to continue to develop new tastes and products for our customers

Beef

27

Beef | Profile

฀

Beef and lam b-based m eatpacker w ith w ide footprint in South Am erica

• Revenues of R$7.3 billion (51% of Marfrig Group) in

9M16

• Vast brand portfolio, with increasing export focus

฀

One of the w orld’s top beef producers, 2 nd in Brazil and 1 st in Uruguay

฀

Unique South Am erican footprint

• 27 production sites and 7 distribution centers in Brazil,

Uruguay, Argentina and Chile

• Unique positioning in the South American beef region,

enhances local and international competitiveness and sanitary risk control

฀ Revenue Breakdow n – 9 M1 6

% by Channel/ Market % by Protein 71% 29%

Beef Brazil Beef International

76% 10% 14%

Fresh Beef Processed Lamb, Leather and Other

28

Beef | Production Structure

 1 0 production units  2 .7 m illion cattle heads/ year of operating authorized capacity  2 .2 m illion cattle heads/ year of effective capacity  3 8 0 thousand heads of lam b/ year

Brazil Uruguay, Argentina and Chile

 8 production units  1 .1 m illion heads of cattle/ year  2 .0 m illion heads of lam b/ year

Slaughtering Processed food Slaughtering/ Processing Distribution Center Other

29

Beef | Key Strategic Goals

Grow volum e and average prices Maxim ize South Am erica’s exporting platform

30

15 18 25 27

2012 2013 2014 2015

฀ Food service

฀

Strategy to optimize the sales team with a view to boost productivity implemented

฀

Improvements in service quality level in all segments (OTIF , on-time delivery, etc.)

Beef | Brazilian Market

Grow th in Revenue per Sales Rep

(R$ million/ salesman)

฀ Retail

฀

Focus to grow volume on small/ medium retail channel

฀

Partnership with large retailers in portioned cuts products

฀

New strategically located DCs and commercial partnerships in North/ Northeast regions

฀

Innovation and brand management dedicated to higher-margin products

31

฀ 9 M1 6 Export destinations

Beef Brazil (% on revenues)

Beef | Brazil Exports

฀ The opening of new markets promotes

growth in exports for Brazilian beef

฀ Share of Exports

Beef Brazil (% on revenues)

40% 1% 22% 18% 16%

Main I m porters Status for Brazilian Exports USA Newly opened Russia Open Japan Closed Hong Kong Open China Newly opened South Korea Closed E.U. Open / Hilton Canada Closed Mexico Closed Egypt Open Venezuela Open Saudi Arabia Newly opened

3%

44% 48% 44%

2014 2015 2016LTM

32

฀ 9 M1 6 Export destinations

Beef Uruguay (% on revenues)

28% 31% 13% 20%

Beef | Uruguay Exports

฀ Uruguay has access to the main beef

import markets

฀ Share of Exports

Beef Uruguay (% on revenues)

7%

Main I m porters Status for Uruguayan Exports USA Open Russia Open Japan In Negotiation Hong Kong Open China Open South Korea Open E.U. Open/ Hilton Canada Opem Mexico Open Egypt Open Venezuela Open Saudi Arabia Open

1%

62% 58% 60%

2014 2015 2016LTM

33

Beef | Relationship program s

34

• Marfrig was the pioneer in Brazil to sell products with the Rainforest

Alliance Certified seal. The certificate attests that the beef was produced in accordance with sustainable environm ental, social and economic practices as well as good animal welfare and production management practices

Beef | Sustainability

• Marfrig club promotes the production of sustainable, safe and legal beef
• 4,146 farm members as of December 2015
• Marfrig is a signatory of the Criteria for I ndustrial Scale Cattle and

Beef Products Operations in the Am azon Biom e

• Monitor regularly by satellite all the suppliers located in the Amazon

Biome to ensure that animals do not come from newly deforested areas, indigenous land and conservation areas

• 26 million hectares monitored by Marfrig
• Marfrig Tacuarembó plant started the Organic Meat Program in 2000
• Meat is free from synthetic fertilizers, anabolic hormones and growth
• stimulants. Cattle is grass-fed only

35

Beef | Anim al W elfare

฀

In line with EU Regulation 1099/ 09

฀

Written procedures for Animal Welfare assurance within our production plants

฀

Infra-structural and handling techniques improvements

฀

Continuous communication and reporting to farmers on bruise occurrence

฀

Investing in continuous training

฀

Marfrig Club Check-List

• Dedicated in-house Department

for Anim al W elfare

• Training of people handling

animals

• Modern fleet for Cattle

Transportation

• Anim al W elfare Officers in

all slaughtering plants

• Stunning Box and Pistol in all

the plants

Marfrig improved

• ne

tier in the ranking published by the BBFAW , which recognizes companies with the w orld’s best anim al w elfare

• practices. I n the BBFAW ’s 2 0 1 5

Report, the Company was classified as Tier 2 and is the best- positioned Brazilian m ultinational com pany.

Financial Results

3 Q1 6

37

Guidance 2 0 1 6 - Revision

Original Target 2 0 1 6 ( 1 ) Revised Target 2 0 1 6 ( 4 )

Net Revenue

R$ 2 2 to R$ 2 4 billion R$ 1 9 to R$ 2 0 billion

Adjusted EBI TDA Margin( 2)

8 .5 % - 9 .5 % 8 .5 % – 9 .0 %

CAPEX

R$ 4 5 0 to R$ 6 0 0 m illion R$ 4 5 0 to R$ 5 5 0 m illion

Free Cash Flow ( 3)

R$ 1 0 0 to R$ 2 5 0 m illion R$ 0 to R$ 1 0 0 m illion

(1) Assumptions based on exchange rate of R$4.10/ US$1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax. (4) Assumptions based on the exchange rate of R$3.47/ US$1.00 (average exchange rate: 1Q16 - R$3.91; 2Q16 - R$3.51; 3Q16 - R$3.25; 4Q16e - R$3.20/ US$1.00).

38

Guidance 2 0 1 6 and 9 M1 6

Revised Target 2 0 1 6 ( 1 ) 9 M1 6

Net Revenue

R$ 1 9 a 2 0 billion R$ 1 4 billion

Adjusted EBI TDA Margin( 2)

8 .5 % – 9 .0 % 8 .4 %

CAPEX

R$ 4 5 0 to R$ 5 5 0 m illion R$ 3 4 4 m illion

Free Cash Flow ( 3)

R$ 0 to R$ 1 0 0 m illion R$ ( 2 9 ) m illion

(1) Assumptions based on exchange rate of R$3.47/ US$1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax.

39

Financial Perform ance | Consolidated

฀ Net Revenue

(R$ million)

฀ The decline in net revenue was due to

the effects from the 8 .5 % Brazilian real appreciation against the U.S. and lower volume, partially offset by better prices in Brazilian domestic market.

• 13%

฀ 3 Q1 6 Revenue Breakdow n

By Business By Currency

5,120 4,451 3Q15 3Q16

50% 35% 15%

Keystone USA & APMEA Beef Brazil Beef International

53% 26% 21%

US$ Real Other

40

Financial Perform ance | Consolidated

฀ Gross Profit and Gross Margin

(R$ million and % )

฀ Gross Profit impacted by the margin

retraction and volume of Beef Division, partially offset by the strong Keystone result.

฀ Adjusted EBI TDA and Margin

(R$ million and % )

• 27%

EBI TDA Breakdow n

3 Q1 5 3 Q1 6

• 17%

584 487

11.4% 10.9%

3Q15 3Q16

468 341

9.1% 7.7%

3Q15 3Q16

41% 59%

Keystone Beef

59% 41%

41

Net I ncom e/ Loss | Consolidated

฀ Net Loss

(R$ million)

฀

In 3Q16, the net result of continued operations* posted a net loss of R$170 million, improving R$573 million from the same quarter last year.

฀

On the same basis, the accumulated loss for the year was R$485 million, improving R$867 million from the same period of 2015.

* Results from Continued Operations exclude the results from asset and equity interest divestments.

(743) (170) 3Q15 3Q16

(1,352) (485) 9M15 9M16

42

278 283 3Q15 3Q16

Keystone Highlights

฀ Net Revenue

(US$ million)

฀ Adjusted EBI TDA and Margin

(US$ million and % ) % Key Accounts 26% 31%

฀ Total Volum e

(Thousand Tons)

+16% +2%

• 1%

฀

Double digit EBITDA growth:

฀

Continued Key Accounts expansion growth and improved product mix (NAE) in the U.S.;

฀

Improved U.S. export sales price;

฀

Strong growth in Australia and Malaysia.

฀

Net revenue impacted by lower US beef prices. 697 688 3Q15 3Q16

53 62

7.7% 9.0%

3Q15 3Q16

43

278 139

10.5% 6.3%

3Q15 3Q16

193 202 91 57 285 259 3Q15 3Q16 1,315 1,453 1,316 762 2,631 2,215 3Q15 3Q16

Beef Highlights

฀ Net Revenue

(R$ million)

• 16%

฀ Total Volum e

(Thousand Tons)

• 9%

฀ Adjusted EBI TDA and Margin

(R$ million and % ) % food service Brazil

40% 42%

• 50%

฀

The negative impact of the appreciation of real and the lower sales volumes were partially offset by domestic market prices.

฀

Reduction of the pace of exports to seek price improvement.

฀

EBITDA negatively impacted by the retraction of the sector's export spreads and lower sales volume.

% sales to Asia

40% 27%

44

5.8 5.9

2Q16 3Q16

11.0 11.6

2Q16 3Q16 5,731 1,159 883 1,007 2,102 2,020 1,285 3,129 Cash & Equiv. 2016 2017 2018 2019 2020 2021-22 2023

Debt Maturity Schedule & Ratios

R$ million

Ratios 2Q16 3Q16

Leverage: Net Debt / adj. EBITDA LTM – Continued Operations (excl. capital gains) 3.1x 3.4x Net Debt / EBITDA LTM (Excl. FX Variation) 1.1x 2.3x Managerial Indicators: Average Cost (p.a.) 7.3% 7.4% Current Liquidity 1.7 1.7 Duration (years) 4.0 4.0

Gross Debt

(R$ and US$ billion )

+1% +6%

3.4 3.6

US$

Net Debt

(R$ and US$ billion ) 1.8 1.8

US$

45

537 39 (175) (292) (31)

CFO Capex Interests FCF Descontinued Total FCF

3 Q1 6 Cash Flow | Consolidated

R$ m illion

46

Bonds & Rating

Maturity Currency Notion Cupom 2018 USD 281.9 mm 8.375% 2019 USD 660.3 mm 6.785% 2020 USD 484.7 mm 9.500% 2021 USD 27.8 mm 11.250% 2023 USD 1.0 bn 8.000%

฀ I ssued Bonds ฀ Rating

Agency National Scale Int´l Scale Perspective S&P

br BBB B+

Positive FitchRatings

A bra BB-

Stable Moody´s

• B2

Stable

W hy Marfrig?

48

6.7x 5.3x 11.7x 7.5x 6.6x 5.4x 12.0x 14.8x 8.2x 12.7x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10

Peers | Potential catch up ( SOTP valuation)

Average*: 8.7x

฀

Marfrig is trading 41% below its EV/ EBITDA peers average;

฀

Potential upside:

฀

Interest savings (BNDES conversion + cost reduction)

฀

Competitive assets with broad position in South America

฀

Keystone: a large protein player in the global market – highly diversified (geographic and product portfolio)

* 50% Beef’s peers + 50% Keystone peers

EV/EBITDA 2016e

49

W hy Marfrig? | Leading Player

฀ One of the largest and most diversified protein player worldwide; ฀ Solid position, strategic and diversified supplier of protein in the US

QSR, foodservice and retail channels; and

฀ Leading protein supplier for APMEA region and well positioned to

capture market increase in Asia and Middle East;

฀ One

• f

the dominant players in South America: main region to support the growing international demand with grass fed, hormon- free beef;

฀ Largest player in Uruguay, already supplying in the US market, with

high quality, organic and fully traceable meat.

Attached files

51

Andrew Murchie Beef Brazil Marcelo Secco Beef Southern Cone

Corporate Structure

Martin Secco CEO - Marfrig Global Foods CEOs - Business Units Eduardo Miron VP – Finance - CFO & IRO Heraldo Geres VP – Legal & HR Marcos Molina Chairman of the Board Corporate Vice-Presidents Frank Ravndal Keystone Foods Audit Committee Marcelo Correa Finance Committee Carlos Langoni HR and Corporate Governance Committee Antonio Maciel

52

Shareholder structure

MMS BNDES Participações Brandes I nvestm ents Skagen AS Free Float

34.3% 19.6% 10.4% 5.4% 0.0% 30.3%

Managem ent + Treasury As of November 2016

53

Guidance 2 0 1 5

Target 2 0 1 5 ( 1 ) 2 0 1 5 Com bined( 4 )

Net Revenue

R$ 2 3 to R$ 2 5 billion R$ 2 5 billion

Adjusted EBI TDA Margin ( 2)

8 .0 % - 9 .0 % 8 .5 %

CAPEX

R$ 6 5 0 m illion R$ 5 5 6 m illion

Free Cash Flow ( 3)

R$ 1 0 0 to R$ 2 0 0 m illion R$ 2 1 3 m illion

(1) Assumptions based on exchange rates of R$2.70/ US$1.00 and R$4.30/ £1.00. (2) Excludes non-recurring items. (3) Operating cash flow after capital expenditures, interest expenses and income tax. (4) Pro-forma non-audited values, including the discontinued operations: Moy Park, Argentina Marfood and MFG Agropecuária. Excludes the capital gain from the Moy Park divestment. Combined net revenue only includes nine months of Moy Park (Januray to September 20115)

2014 2015 2013

For the third consecutive year

54

Sales | Beef Brazil

+73% +90%

฀ Grow th in Prem ium Brands sales

volum e

฀ Exponential grow th of export

sales to China 14x

+

Dem and Planning

+

Routing

+

Sales Process

+

Proper Variable Com pensation

+

Field Technology

+

Managem ent System

In December 2015, China (ex-Hong Kong) accounted for 15% of exports and was our 2nd main destination

55

Liability Managem ent Process ( 1 / 3 )

฀ I nitiatives

US$375m

Tender Offer

US$59m

US$406m US$64m

Spot Market Face Value Face Value

Bond Repurchase – 4 Q1 5

฀ The

total face value

• f

the senior notes repurchased amounted to US$470 million, of which US$64 million have not been canceled yet and therefore are still part

• f

the Company’s gross debt.

฀ Compared

to the 3Q15, gross debt was reduced by US$684 million.

56

Liability Managem ent Process ( 2 / 3 )

฀ Keystone credit lines

Values in U$ million

Limit: + USD 270 million Maturity: + 2 years

4Q15 - Amendment and extension of existing credit lines:

฀ Pool of 20 Banks, with Rabobank as the lead arranger.

Line Limit Maturity Rate From To From To From To Revolver 430 530 2018 2020

Libor+ 150 to 250 bps Libor+ 125 to 225 bps

Term Loan 200 370 2020 2022

Libor+ 175 to 275 bps Libor+ 150 to 250 bps

Total 630 900

57

Liability Managem ent Process ( 3 / 3 )

Bonds Maturity Schedule ( pro form a)

Before* After

• Avg. Term : 2 ,7 years
• Avg. Term : 4 .7 years

I n USD

2016 2017

1 8 4 m

2018

1 5 3 m

2020

2 8 5 m

Opening Balance

1 8 5 m

Repurchase

Closing Balance

I ssuance

2023 1 .0 bn 184m 153m 567m 670m 2019 660m 2021 28m

2 8 2 m 4 8 5 m 6 6 0 m 2 8 m 1 .0 bn

Call

* 1Q16

200 400 600 800 1,000 1,200 2016 2017 2018 2019 2020 2021 2023 200 400 600 800 1,000 1,200 2016 2017 2018 2019 2020 2021 2023

I nvestor Relations

w w w .m arfrig.com .br/ ir