Investor Relations

Company Presentation

June, 2020

Marfrig A T A G L A N C E

Company Highlights

2nd largest beef producer worldwide

Cattle slaughtering capacity of 31,200 head/day and lamb slaughtering capacity of 6,500 head/day

Largest beef patties producer worldwide

Production capacity of 232 thousand tons of beef patties/year

Production in the best geographies in the world with access to premium markets

National Beef is one of the most profitable and efficient beef companies in the US

South America operation has the highest number of plants certified to export to China

Expertise in industrialized and plant-based products coupled with strategic partnerships

Net Revenue 1Q20²

R$ 13.5bn

Adjusted EBITDA 1Q20²

R$ 1.2bn

Net Debt/Adj. EBITDA1,3

2.8x

Note: (1) As of 4Q20 LTM; (2) As of 4Q20; (3) Presented on a pro forma basis to give effect to the acquisition of national beef, Iowa Premium, LLC, and QuickfoodsS.A. as if they had occurred on January 1, 2018 and certain related indebtedness incurred in connection with each acquisition

Source: Company

Financial Highlights

72%North America

Revenue¹ by business unit

North America South America

8%

3%

Revenue¹ by Currency

US$ BRL Others

89% In US$

2

A c q u i s i t i o n s p h a s e

2007 2008 2009 2010 2011

IPO(B3: Brazil)Acquisition of beef processing units in Brazil, in Mato Grosso, Mato Grosso do Sul and São Paulo

Moy ParkAcquisition of the first international asset of global scale

SearaAcquisitions of Seara; Grupo Zenda;Brazilian turkey operation owned by Doux Frangosul; Leasing of 12 slaughter facilities

KeystoneAcquisition of Keystone Foods

GreenpeaceFirst food company in the world to sign a public commitment

A global path

3

A global path

Asset SalesDivestment of Seara and Zenda businesses units.Launch new organizational culture “Focus to Win”

Moy ParkSale of Moy Park. Company's strategy to focus on food service

National Beef and Keystone Shift in Marfrig’s strategic direction towards beef protein and higher value products, Attainment of a low-leverage capital structure.

Added valueAcquisition of BRF assets, Quickfood and Várzea GrandePlant Based Burger

2013 2014 2018 2019

R e a d j u s t m e n t

Portfolio

4

Revenue by RegionDIVERSIF IED REVENUE GENERATION WITH ACCESSTO MAIN MARKETS :

78%Solid market (US, Europe and Japan)

Market Profile

19%Growing Market (Brazil and China)

5%10%

Brazil

9%

4%Argentina, Chile & Uruguay

64%USA Japan

China

Middle East

1%

4%Europe

Others

3%

Base: 3rd quarter

5

Marfrig’s superior production and sales presenceW I D E P RO D U C T I O N C A PA C I T Y I N T H E A M E R I C A S W I T H S U P E R I O R

S A L E S P L AT F O R M A N D A C C E S S TO P R E M I U M M A R K E T S

G L O B A L S A L E S F O R C E

Source: Company

Sales offices

78%19%

3%

Solid markets

Growing markets

Others

Breakdown by source of revenue

58% 42%

South America

North America

Cattle slaughtering

capacity

6

6

MMS +Controlling Holders

46,01%

Management +Treasury

2,29%

Other

51,70%

MarfrigGLOBAL FOODS

OWNERSHIP STRUCTURE

7

as of 06/10/2020

ManagementBoard of Directors

Marfrig GlobalFoods

Operations

South America Operations

Miguel GularteCEO

North America Operations

Tim KleinCEO

Marcos Molina

Controlling Shareholder

and Chairman of the Board

Tang DavidCFO

Simon McGeeCFO

35+ years of experience in the beef industry. Began career at Cooperativa Industrial de Cames e Derivados.

Former president of Uruguayan Meatpacker PUL, international VP of Minerva, and president of JBS Mercosul

Prior to joining Marfrig in 2007, worked for 11 years in the Treasury department of Asea Brown Boveri—

ABB Brasil, where his last position was Executive Officer of their financial arm. Also worked for 4 years in the

Treasury department of JBS Friboi

30+ years of experience in the beef industry. Joined National Beef in 1992 and has served as CEO since 2009. Prior

VP as Cargill, VP of Operations at Armour Food Company (of ConAgra Foods), and VP of Sales and Pricing at EA

Miller

Joined National Beef in 2006. Former investment banker with Christenberry Collet &

Company and founder and majority owner of McGee Ranch Company, Inc.

Miguel Gularte

CEO, South America

Tang David

CFO, South America

Tim Klein

CEO National Beef

Simon McGeeCFO, National Beef

20+ years in the food industry, where he began at

age 16 in the food distribution business. Mr.

Molina is also the CEO of MMS Participações ltda

High Corporate Governance StandardsB E N C H M A R K AT C O R P O R AT E G O V E R N A N C E P R A C T I C E S

Years on

the Board Experience

Marcos

Molina Santos12+

Antonio

Maciel Neto12+

Herculano

Anibal Alves1+

Roberto Faldini 3+

Roberto Silva

Waack12+

Marcia A. M.

Santos12+

Rodrigo

Marçal Filho12+

Alain Emilie

Martinet10+

Ch

air

man

Ind

ep

en

den

t m

em

bers

Bo

ard

mem

bers

Board of Directors Supporting Committees

Audit

Antonio Maciel Neto*

José Mauro Depes Lorga

Lúcio Abrahão Monteiro Bastos

Financial and

Risk Management

Herculano Aníbal Alves*

Marcia Aparecida Pascoal Marçal dos Santos

Tang David

Sustainability

Roberto Silva Waack

Daniela Martins Mariuzzo (IDH)

Alain Emilie Martinet

Paulo Pianez Junior

Compensation, Corporate

Governance and Human Resources

Antonio Maciel Neto

Roberto Faldini

Heraldo Geres

Note: (1) Transparência Internacional (TI); (2) Considered as protein industry Marfrig, BRF, JBS and Minerva Source: Company

Our OperationsNorth America

% of Consolidated Revenue

4th Largest beef processing company in the U.S.²

Cattle slaughtering capacity: 13,100 head per day

72%

% of Consolidated Ebitda

64%

South America

Leading beef processing companies in South America

Cattle slaughtering capacity: 18,100 head per day

28%

36%

Plant Plus Foods

Recent created JV with ADMto explore the meat alternative market in North and South America.

PlantPlus Foods merges Marfrig’s global leadership in hamburger production and protein processing with ADM’s unique technical ingenuity and complete portfolio of natural ingredients and flavor.

PlantPlus Foods is conceived as an organization with unmatched end to end capabilities and scale to further meet consumer needs

% of Consolidated Revenue

% of Consolidated Ebitda

N o r t h A m e r i c a O p e r a t i o n

North America OperationU N I Q U E C O M B I N A T I O N O F P R O F I T A B I L I T Y A N D S C A L E

Cattle slaughtering capacity: 13,100 head per day, 14% of slaughtering capacity share in the U.S.

87% of sales to the U.S. internal market targeting premium customers

Unique sourcing capability: ~25% coming from USPB (association), ensuring quality and consistency

One of the largest and most technologically advanced Wet Blue tannery in the world

State-of-the-art e-commerce for high-end and customized products

Transportation services in 48 states through National Carriers

Exports to premium markets such as Japan and South Korea

One of the most profitable and efficient beef companies in the U.S.

4th Largest beef processing company in the U.S.²

IO

KS MO

OHPA

GA

3slaughteringplants

5further processing plants

Note: (1) As of 1Q20 LTM; (2) In terms of production capacity Source: Company

12

North America OperationV A L U E A D D E D S T R A T E G Y

7,4%9,6%

11,1% 10,7%

6,2%7,7% 8,7% 8,3%

2017 2018 2019 TTM March 2020

Fiscal Year EBITDA Margin % Comparison

National Beef Peer2

- National Beef sells a higher % of its products in value-

added format vs. the competition while still

maintaining a low cost structure

- Value-added product mix provides a more attractive

and insulated margin profile

- Leading global market share for US Chilled Beef;

especially notable in Japan (35+%) – the premium

export market for US Beef

- Leading producer of Certified Angus Beef

- Tightly synchronized cattle procurement and sales

team enable more effective margin capture

25% 22% 21% 19%13%

0%

10%

20%

30%

NationalBeef

Peer1 Peer2 Peer3 Others

2019 YTD US Chilled Beef Exports

13 Note: In US GAAPSource: Companies financial statements

VALUE-ADDED MINDSET HAS ENABLED THE COMPANY TO ROUTINELY ACHIEVE HIGHER MARGINS VS. THE COMPETITION

North America OperationS T R A T E G I C P A R T N E R S H I P I N C A T T L E P R O C U R E M E N T

Cattle Procurement

- National Beef strives to procure the best, most profitable, cattle from the best feedyards. More than 70% were Black Angus.

- ~85% of National Beef’s cattle come from the primary procurement area of KS, TX and OK and within a 250 mile radius of the plants. The remainder of the company’s cattle come primarily from the key cattle feeding states of Nebraska, Iowa, Colorado and South Dakota

- US Premium Beef owns 15.1% of National Beef and its members provide us with approximately 25% of the cattle that we process.

- In addition to USPB, the company has several other significant supplier appliances that provide another ~35-45% of our cattle each year.

O p e r a t i n g H i g h l i g h s t

N O R T H A M E R I C A

- Increased availability of fed cattle led to additional throughput in the beef plants which allowed for a 19.5% growth in sales volume.

- The revenue growth is mainly explained by the strong and continuous demand for beef products mainly in the domestic market and by the increase

in the sales volume of case ready and direct-to-consumer businesses.

355 419

6583502

420

1Q19 1Q20

19.5%

Exports Domestic Market

275287

1Q19

1,759 1,898

1Q20

2,0342,185

7.4%

Exports Domestic Market

18%

27%

Volume(thousand tons)

Net Revenue(US$ million)

8%

5%

6,149

1Q19 1Q20

6,465

5.1%

Market Data

Kills(USDA F.I. Steer/Heifer Kill)

218.4 215.6

1Q19 1Q20

-1.3%

Domestic Price(USDA Comprehensive Cutout $/cwt)

15

178 229

8.7%

1Q19

10.5%

1Q20

+29.1%

Gross Margin Gross Profit

131 175

8.0%

6.5%

1Q19 1Q20

+33.5%

EBITDAaj Margin EBITDAaj

Gross Profit(US$ million)

EBITDAAJ & Margin(US$ million)

Market Data

Cattle Prices(USDA KS Steer $/cwt)

1.82

1Q19 1Q20

1.74

+4.6%

Spread(Cutout Ratio)

1Q19 1Q20

125.4 118.8

-5.2%

* cutout ratio: average USDA reported prices for beef price divided by average USDA reported live prices for fed cattle “USDA KS Steer”: cattle price reference in the U.S. state of KansasA “hundredweight,” or Cwt, is a weight-measuring unit used in certain commodity contracts. In North America, a hundredweight equals 100 pounds.

- Margins expansions are explained by the improvement in 1Q20 cutout ratio* of 1.74x, up 4.6% over 1Q19 as fed cattle prices declined

more than beef values.

- The combination of increased throughput and higher per unit margins resulted in increased gross profit versus Q1-2019.

16

O p e r a t i n g H i g h l i g h s t

N O R T H A M E R I C A

S o u t h A m e r i c a O p e r a t i o n

South America OperationL E A D I N G P O S I T I O N A C RO S S A L L

S O U T H A M E R I C A O P E R AT I O N S

Slaughtering capacity in Brazil

Cattle slaughtering capacity: 18,100 head/day

Geographic footprint diversity, plants in 4 countries and 7 states in Brazil

Footprint improvement keeping the same slaughter capacity with less plants

17,500+ cattle farmers

Exports to ~100 countries

Food-service provider for the premier restaurants and steakhouses

Reference in Brazil for plant-based burger

Diversified industrialized portfolio focused on premium brands and markets

Access to all premium export markets

South America leader in certified organic beef production

Superior capacity to serve growth markets

2nd

Largest beef producer in Uruguay

1st

Largest beef importer in Chile

1st

Largest hamburger producer in Argentina

1st

18

South America OperationA N I N T E G R AT E D E X P O RT S P L AT F O R M W I T H T H E B E S T F O OT P R I N T

TO A C C E S S T H E M O S T I M P O RTA N T M A R K E T S

19

M a r f r i g ’ s C u r r e n t E x p o r t P r o f i l e a s % o f R e v e n u e s ( a s o f 1 Q 2 0 )

E x p o r t t o : S o u t h A m e r i c a

T o t a l

M a r f r i g

B r a z i l

M a r f r i g

U r u g u a y

M a r f r i g

A r g e n t i n a

C h i n a & H o n g

K o n g

5 9 , 5 % 3 3 , 9 % 4 2 , 5 % 3 1 , 4 %

E u r o p e 2 5 , 2 % 1 0 , 8 % 3 4 , 6 % 1 9 , 8 %

M i d d l e E a s t 8 , 7 % 7 , 2 % 0 , 7 % 0 , 0 %

U S A 6 , 5 % 5 , 2 % 0 , 9 % 0 , 3 %

O t h e r s 0 , 1 % 4 2 , 9 % 2 1 , 3 % 4 8 , 5 %

T o t a l 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 %

Source: Company

South America OperationM A R F R I G H A S T H E L A G E S T P R O D U C T I O N

A V A I L A B I L T Y C E R T I F I E D T O E X P O R T T O C H I N A

20

70%

S l a u g h t e r i n g c a p a c i t y

a v a i l a b l e c e r t i f i e d t o e x p o r t

t o C h i n a

1Q201Q19

17%

34%

+97

E x p o r t f r o m S o u t h

A m e r i c a t o C h i n a a % o f

r e v e n u e s

245 229

88 111

1Q19 1Q20

333 340

+2.1%

Domestic MarketExports

1,637

3,766

1,3502,222

1Q19

1,544

1Q20

2,987

+26.1%

Exports Domestic Market

-6%

+26%

Volume(thousand tons)

Net Revenue(R$ million)

+65%

-6%

1Q20

60%

45%

1Q19

Exports(% of revenue)

Exports by destination

(% of exports revenue)

19%

8%

31%

2%

China & Hong Kong

Europe

Middle East

USA

Other

8%

25%

7%

- Growth of 26.1% in net revenue is mainly explained by the increase in the volume and average price of exports, a consequence (i) of the

higher number of permissions for China, which, added to Hong Kong, now represents 60% of the exports sales destination, (ii) 87% increase in

processed food revenue, (iii) better commercial and pricing strategy adopted at the end of 2019 improving the mix of destination countries,

and (iv) the effect of the 18.2% devaluation of the real against the dollar (1Q20 R$ 4.46 vs R$ 3.77 in 1Q19).

40% 60%

1Q19 1Q20

21

S O U T H A M E R I C AO p e r a t i n g H i g h l i g h s t

S O U T H A M E R I C A

21

280

621

9.4%

1Q19

16.5%

1Q20

+122%

Gross Margin Gross Profit

104464

3.5%

1Q19

12.3%

1Q20

+346%

EBITDAaj Margin EBITDAaj

Gross Profit(R$ million)

EBITDAAJ & Margin(R$ million)

▪ Footprint optimization: closing inefficient plants and potentializing the efficient ones▪ Better yield of de-boned products▪ Increased productivity and reduced fixed costs

- The record performance is explained by: (i) better export results, (ii) increase in processed food results, and (iii) reduction in costs, expenses and fixed

cost dilution given the operational improvement & efficiency program started in 2019 and continued in 2020, which offset the increase in COGS (+

16.2%) due to the increase in production and cattle prices in Brazil (+ 30%) and Uruguay (+ 13%).

Operational Improvement & Cost Management

▪ Strategic purchase of meat for patties production▪ Best mix of cattle purchase and production carried out▪ Increased productivity and reduced industrialization costs▪ Better yield of de-boned and trimmings products

▪ Higher production of value-added products and organic meat▪ Better yield of de-boned and trimmings products▪ Reduction of industrialization costs

▪ Start of operation of the new Distribution Center▪ Increased sales capillarity through new channels

22

South America Operation:▪ Integrated platform with consolidated directories: Exports; Financial; IT;

Sustainability

S O U T H A M E R I C AS O U T H A M E R I C AO p e r a t i n g H i g h l i g h s t

S O U T H A M E R I C A

22

P a t t i e s

the world

T H E B I G G E S T

P R O D U C E R O F

B E E F P A T T I E S

Várzea Grande - BRAZIL: Beef patties, meatballs and kibbeh

QuickFood - Argentina:Leaders in the production of beef products

in Argentina and controllers of the Paty and Vienissima brands

8%

17%

30%

45%

Uruguay

Argentina

Brazil

USA

Patties Production by Countries

Ohio Facility: Beef patties 106,000 tons/year

24

P l a n t b a s e d

Meat Alternative

Marfrig, one of the largest beef and hamburger

producer in the world, and ADM, a global leader in

nutrition, have a success history in working together to

develop and manufacture sustainable and plant-basedproducts, including

The Rebel Whopper hamburgers, from Burger King, and

the Aussie Plant Burger, from Outback Steakhouse, in

Brazil, as well as products marketed under the Revolution

brand, from Marfrig

Now, PlantPlus Foods will enable the expansion of this

successful relationship and unique specialization to offer

hamburgers, nuggets, cold meats, sausages and other

highest quality plant-based products to their clients26

Technical ingenuity and

complete portfolio of natural

ingredients and flavors

One of the

world’s leading meat producers

and the global leader in

hamburger production

Contributions

ManufacturingNatural

Ingredients

Technical

Expertise

Contributions

Application

Development

Sales &

Distribution

Customer

Access

27

S u s t a i n a b i l i t y I n i t i a t i v e s

CustomersFood safety, innovation and growth, engagement and communication

with stakeholders, nutritional value and value generation

EconomicValue creation, free cash flow, reduction

of leverage and increasing profitability

Work EnvironmentCompliance, diversity and inclusion, employee

development, ethics and integrity, health and well being

SuppliersSustainable supply chain, free deforestation,

animal welfare, slave labor prevention

CommunitiesCommunity engagement, volunteering among employees,

social economic development and social entrepreneurship

EnvironmentEmission reduction, energy, water, environmental

management system – waste and effluent

SustainabilityS T R A T E G I C

PillarsR e f e r e n c e i n t h e e f f i c i e n t u s e o f n a t u r a l r e s o u r c e s ande n v i r o n m e n t a l preservat i o n

Best ranked Brazilian Company in the

FAIRR Protein Producer Index 201911°100% compliant for the 7th consecutive

year on cattle sourcing in the Amazon

Biome2

2°

29

Source: Company; Coller FAIRR Protein Producer Index 2019

RESPONSIBLE

Deforestation and Biodiversity Loss

Global movements tracking forest loss target factory farming companies

and can lead to shareholder divestment and/or weaken customer loyalty

14LIFE

BELOOW

WATER

LIFE15 ON LAND

2Water Use and Water Scarcity

Beef, pork, dairy, and poultry companies consume large quantities of

water both directly and indirectly via their purchase of animal feed

6CLEAN WATER

AND SANITATION 15 LIFE

ON LAND

3Waste and Water Pollution

Companies are facing greater scrutiny about the impact of waste on surrounding

communities and the environment, meaning potential fines and regulation

GOODHEALTH3AND WELL-BEING

CLEAN WATER

6 AND SANITATION

4Antibiotics

Drug-resistant infections are a serious public health threat which will

likely impact productivity on a national scale

GOODHEALTH3AND WELL-BEING

5Working Conditions

Operational risks, which can involve worker injuries and reputational

risk, as well as food product contaminated by sick workers

DECENT WORK8 AND ECONOMIC

GROWTH6Animal Welfare

Poor animal welfare presents operational and

reputational risks for the companies

12

CONSU

MPTION

AND PRODUCTION

7

60Global companies

09Risk and opportunity factors

30KPIs

FAIRRProteinP R O D U C E R

I N D E X 2 0 1 9

Greenhouse Gas Emissions

Disproportionate amount of GHGs generated by livestock makes companies

engaged in factory farming vulnerable to transition and physical risks

13 CLIMATE

ACTION1

Sustainable Proteins

Reduced reliance on animal protein sources is key to sustainable

development

GOOD

HEALTH3 AND WELL-BEING 12RESPONSIBL

E

CONSUMPTIO

N

AND

PRODUCTION

LIF

E15 ON

LAND

1

3

CLIMAT

E1

4

LIFE

BELOW

ACTION

WA

TER9

Food Safety

A series of high profile food safety incidents in meat and dairy have focused

consumers concerns on threat of food contamination and foodborne illnesses

GOODHEALTH3AND WELL-BEING2 ZERO

HUNGER8

FAIRRProteinP R O D U C E R

I N D E X

2 0 1 9

Mowi

Leroy Seafood

Bakkafrost

Fonterra

Grieg Seafood

Tassal Group

SalMar

Tyson Foods

Hormel Foods

Charoen Pokphand

FoodsThai Union Group

Empresas AquaChile

WH Group

GFPT

Grupo Nutresa

Maple Leaf Foods

BRF

JBS

Cranswick

Minerva

Marfrig Global Foods

Salmones Camanchaca

0% 70%60%50%40%30%20%10%

AvaregeRisk Score

MED

IUM

RIS

KLO

WR

ISK

HIG

HR

ISK

31

Ta k e a w a y s

TakeawaysK E Y

C l e a r v a l u e c r e a t i o n s t r a t e g y

S o l i d f i n a n c i a l p e r f o r m a n c e c o m b i n i n g c o n s i s t e n t m a r g i n s a n d d e l e v e r a g i n g

T o p -n o t c h m a n a g e m e n t t e a m i n c o n n e c t i o n w i t h h i g h l e v e l o f c o r p o r a t e g o v e r n a n c e

D i v e r s i f i e d p r o d u c t i o n a n d d i s t r i b u t i o n p l a t f o r m e v o l v i n g t o w a r d s v a l u e -a d d e d p r o d u c t s

R o b u s t a n d e f f i c i e n t n o r t h a m e r i c a n o p e r a t i o n c o m p r i s i n g a u n i q u e s o u r c i n g c a p a b i l i t y

A c c e s s t o h i g h g r o w t h m a r k e t s t h r o u g h t h e s o u t h a m e r i c a o p e r a t i o n

W o r l d l e a d i n g s t r o n g s e c t o r

B e e f p l a t f o r m , w e l l -p o s i t i o n e d t o b e n e f i t f r o m m o m e n t u m

34

Appendix

1Q20 Consolidated

Financial Results

Net Revenue & EBITDA

72%

1Q19

72%

1Q20

10,668

13,502

+26.6%

Net Revenue(R$ million)

8%

3%

5.5%

83%1Q201Q19

9.1%

64%584

1,223

112%

South AmericaEBITDAaj Margin North America

EBITDAAJ & Margin(R$ million)

Norht AmericaSouth America

- Consolidated net revenue 26.6% higher than 1Q19 due to the continued excellent performance of the North America Operation, the 46.5% increase in

export revenues in South America and the 18.2% devaluation of the real against the dollar, which had an average rate of R$ 4.46 16% at closing R$ 5.20.

In Q1 only 8% of revenues was in reais.

- The excellent performance is explained by (i) the higher sales volume in the North America Operation given the solid and continuous growth in

demand for beef protein in the USA and (ii) the increase in the average price and higher volume of exports in South America, (iii) the improvements in

productivity efficiency and cost reduction promoted by Operation South America; and (iv) the greater devaluation of the real against the dollar.

89%In US$

Net Revenue profile(% by currency)

In US$ In R$ Outher

35

Cash Flow(R$ million)

- In continuity with the debt and financial expenses reduction plan, we settled R$ 938 million in

1Q20 in working capital operations that burdened financial expenses, a significant milestone in the

execution of our liability management strategy.

- Recurring free cash flow was positive by R$ 243 million after the reversal of one-off items, such as

the elimination of working capital operations and the payment of the bonus related to the North

American operation.

-971

726

243

Operational C.F. Recurrent Capex

759

938

One-off effects Adjusted OCF

-190

-293

Interest FCF

North

America

Bonus

Settlement of

Working

Capital

Operations

18Source: Company, ¹ Forbes 2018, ² Rabobank

Amort.of Issuance Cost and 23’ Bond Buyback Premium

4Q19 Net Debt

4,251

FX Variation Share BuybackFCF

1,45478188

19,38544 64

Settlement of Leases Other Net Debt 1Q20

13,306

Evolution of Net Debt & Leverage(R$ million)

In US$

3,3013,729

2.84x

2.74x

In US$

3,56x

2,77x

- The net debt of US$ 3,729 million was 13% higher than 4Q19 mainly (i) due to the impacts on free cash flow such as the elimination of

working capital operations, payment of taxes and bonuses related to the North American operation; and (ii) the non-cash effect of the

write-off of the amortization cost of the issue of Senior Notes due 2023, settled in advance in January 2020.

37

37

Debt Profile

1Q19 1Q20

5.81%

6.94%

-113 bps(-16%)

Average Cost of Debt(% a.a.)

In US$

Short Term

Long Term

- In this quarter we reached another important milestone in the execution of the liability management strategy with the average

cost of debt reaching 5.81% a.a., a reduction of 16% or 113 bps compared to 1Q19.

- The downward movement in the cost of the Company's debt is one of the main indicators of the success of the work in

progress to reduce financial expenses and increase profitability.

97%In US$

75%Long Term

- Financial expenses were reduced by 31% or R$ 135 million compared to 4Q19 (i) by the

elimination of working capital operations with greater emphasis in 1Q20, (ii) by the settlement

of R $ 616 million in Refills and (iii ) for the interest savings of under US$ 466 million of Senior

Notes due 2023 repurchased in January.

- The one-off expense of R $ 244 million is a consequence of the early settlement of the Senior

Notes mentioned above. Of this amount, R $ 169 million have no effect since they are the

write-off of the amortized issue costs.

Net Financial Result

4Q19 1Q20 Δ

Provisioned Net Interest (283) (248) 35

Other Income and Expenses (160) (60) 100

Recurrent Financial Result (443) (308) 135

Non Recurrent Expenses (244) (244)

FX Variation (167) (632) (465)

Net Financial Result (610) (1,183) (572)

(R$ million)

224 242 254 283 248

182 147170

160

60

1Q19 2Q19 3Q19 4Q19 1Q20

406389

423443

308

-31%

Provisioned Net Interest

Other Financial Income and Expenses

39

- In the quarter, the negative FX variation of R$ 632 million was the main impact of the net result, which,

adjusted for the non-cash effect of the early repurchase of the Senior Notes due in 2023, was positive by

R$ 32 million.

Net Result(R$ million)

32

169

Adj Net ResultNet Result before FX Variation

Bond 2023 Adj of Amortization Cost

-632

FX Variation Aj Net Result

495

664

22