Keystone Transaction Conference Call August 20, 2018 Disclaimer - PowerPoint PPT Presentation

Keystone Transaction Conference Call August 20, 2018

Disclaimer 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 Corporation nor any of its affiliated companies, consultants or representatives undertake any liability for 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 June 30, 2018, and, unless stated otherwise, 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 “anticipate,” “hope,” “expect,” “estimate,” “intend,” “project,” “plan,” “predict,” “aim” and other 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 offered 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 offer, 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 or 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 opportunely in connection with any security offering conducted by the Corporation, depending on the case. 2

The Transaction Sale of Keystone Foods to Tyson Foods ("Transaction"), except the beef patty facility in North Baltimore, Ohio, USA The retention of operations of the North Baltimore facility facility is in line with Marfrig’s strategy One of the largest U.S. plants with an annual capacity of 91,000 tons of beef ▪ patties (fresh and frozen) State of the art facility dedicated to the foodservice channel ▪ Annual revenue of around US$300 million (11% of Keystone’s total revenue) ▪ Improvement of National Beef portfolio in the U.S. ▪ The Enterprise value considered for this Transaction, excluding the beef patty facility , was US$2.4 billion EV/EBITDA (i) transaction multiple of 10x (i) Adj EBITDA of the LTM not including the beef patty of North Baltimore 3

The Transaction Rationale A simpler, more focused company with a capital structure appropriate to the sector ▪ Strengthens Marfrig's capital structure by reducing debt and improving cash generation ▪ The retention of the North Baltimore, Ohio facility is in line with Marfrig’s renewed strategy focus on beef protein ▪ It is one of the largest beef patties facility in the country and expands Marfrig’s portfolio in the U.S. 4

Keystone Track record of success US$ million ▪ Value of the company +127 % Beef patty increased by ~ 2.3x plant during Marfrig’s management ▪ Improving profitability with value generation Tyson Transaction ▪ Retention of the U.S. beef patty plant which represents around 11% of Sale of the European assets to Moy Park Keystone’s total revenue Sale of logistics assets Keystone - Acquisition Keystone Value After Value by Marfrig Transactions 5

Debt and Leverage after Transaction (Basis 2Q18) - 51% 16.3 4.2x .0 LTM EBITDA and Leverage .0 2.6x .0 3.9 NET DEBT (R$ billion and “x”) (R$ billion) .0 3.0 7.9 .0 (8.4) .0 .0 4.2 (2.2) 2.1 US$ billion .0 ** 2Q18 2Q18 After Net Debt 2Q18 Keystone Sale Nebt Debt After Transaction * Transaction (MRFG consolidated (MRFG consolidated with National Beef + with National Beef Keystone) after the transaction) The Brazilian company in the sector * Enterprise Value of US$2,4 billion excluding minority interest with the lowest leverage ratio ** It does not include the beef patty facility of North Baltimore 6

Marfrig after strategic projects 3.7 billion R$ 40 billion R$ EBITDA Adj* EV/EBITDA (a) : 5.5x Net Revenue* EV : 20.2 R$ billion Debt after transaction: 7.9 (-) Minorities (b) : 3.2 (-) 9.0 billion R$ (=) MARKET CAP theoretical * Annualized 2Q18 data (b) Based on the historical average transaction multiple of the sector (a) Despite the different methodologies that can be used (Equity Method, Discounted Cash Flow, others), for this presentation purposes we use as a reference the acquisition value of the National Beef control in June 2018, without disregarding the premium for the control. 7

Perspectives 2 nd half 2018 Expectation of Marfrig's results is in line with its annual guidance: 2H18 Revenue (R$ billion) 20 to 21 Adj EBITDA Margin (%) 9 to 10% Leverage 2018: 2.2 to 2.5x The Brazilian company in the sector with the lowest leverage ratio Note: Assumes completion of Keystone's transaction by the end of 2018 8

Final Comments The Transaction represents another milestone in the execution of Marfrig's strategy , which is expected to increase shareholder value Consolidated production footprint in the Americas, with access to key consumer markets worldwide The outlook for the global animal protein industry remains positive Non-negotiable commitment to Financial Discipline 6

Q&A session Investor Relations www.marfrig.com.br/ir