Marfrig Global Foods March 2016 Disclaimer This material is a - - PowerPoint PPT Presentation

Marfrig Global Foods

March 2016

2

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 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 December 31, 2015, 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 ฀ Marfrig Beef ฀ Global scenario ฀ 4Q15 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 #3 global beef producer 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 improvement and increased operating cash flow Adjusting the capital structure and reducing borrowing costs Profitable growth and global leadership in foodservice

FOCUS TO WIN

ACTIONS

GREATER VALUE TO SHAREHOLDERS

• Searching for

productivity + synergies

• Streamlining Beef

Brazil production units

• Improving Brazil

sales mix

• Selling non core

assets

• Closing of Moy Park

sale

• Implementing
• ngoing Liability

Management

• Prioritizing organic

growth

• pportunities at

Keystone

• Consolidating
• perating

improvements at Marfrig Beef

6

Marfrig at a Glance

R$ billion* Market Cap: 3.2 Enterprise Value: 10.4

Production Plants Distribution Centers Commercial Units

commercial production and distribution units

45

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

11

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 February 25, 2016

7

Corporate Profile

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

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

฀ Continued Operations Revenue Breakdown – 2015

% by Business % by Currency

฀ Net Revenue (1) (R$ billion)

21% 60% 18%

BRL USD Others

Note: (1) historical figures and guidance for 2015 include continued and discontinued operations. (*) figures excludes discontinued operations (Moy Park, Argentina, Marfood e MFG Agropecuária)

41% 11% 48%

Marfrig Beef Brazil Marfrig Beef Int'l Keystone * *

Global Scenario Highlights

9

417 270 105 205 160 600 270 125 235 165 700 285 145 250 170 China Egypt Iran Malaysia Saudi Arabia 2014 2015E 2016E 1.7 8.9 2 4 6 8 10 1990 1993 1996 1999 2002 2005 2008 2011 2014 China Egypt Iran Malaysia Saudi Arabia

฀

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

Selected Countries Beef Imports

Thousand Tons

Selected Countries Beef Consumption

Million tons/year

CAGR 1990-2014: 7.0% 16% of world total

Global Beef Growth

68% 6% 38% 22% 6%

10

South America Beef Export Platform

Source: FAO and FAS/USDA

Beef Cattle Herd Beef Production Extraction Rate

(million heads) (million tons) (slaughter/herd/year)

฀

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

฀

Australia beef cattle herd reducing given drought issues

฀

US is a net importer of beef

50 100 150 200 250 1990 1995 2000 2005 2010 2015E Argentina Australia Brazil US Uruguay 5 10 15 1990 1995 2000 2005 2010 2015E Argentina Australia Brazil US Uruguay 36% 34% 24% 19%

18% Australia USA Argentina Brazil Uruguay

11

Global Poultry Growth

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, National Chicken Council and OECD-FAO Agricultural Outlook 2014-2023 via Watt Global Media

Poultry Meat Consumption

2014-2023 CAGR %

U.S. Chicken Consumption

Million Tons 7.7 15.2 5 7 9 11 13 15 17 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015E 2016E

12

Global QSR Industry

฀

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$860bn Global Fast Food Market 2013 – 2018 CAGR %

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

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

11.6% 10.3% 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 company focused on value- added protein to the Food Service industry (US/APMEA)

• Revenues of US$2.7 billion in 2015
• 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 70%+ of the supply, largely through contract growers

• Global slaughtering capacity of over 4.5 million head per

week

62% 38%

McD Key Accounts

% by Market % by Protein 71% 29%

USA APMEA

78% 16% 5%

Poultry Beef Other

฀ Revenue Breakdown – 9M15

% by Client

15

Keystone | Production Structure

United States APMEA

3 integrated poultry complexes and 7 processing plants 1 R&D facility 32,000+ restaurants served 6,300 employees 196 million birds/year 400,000 tons of processed food/year 6 further processing plants and 1 primary processing plant 2 innovation centers 4,000+ restaurants served 5,100 employees 40 million birds/year 150,000 tons of processed food/year

Other Processed food Slaughtering Other Processed food Slaughtering

16

Keystone US | Vertical Integration

Supply Control Keystone sources 70%+

• f its U.S. poultry needs

from vertically integrated system; purchases remainder from the market Keystone Farm System 19 Pullet Farms 3 owned by Keystone 61 Breeder Farms 1 owned by Keystone 296 Broiler Farms 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 Demand Key Account Penetration Geographic Expansion

21

225 232 273 373 458 485 709 39 49 54 57 73 78 77

2009 2010 2011 2012 2013 2014 9M15

264 281 327 430 531 563 786

Key Accounts | Accelerate Growth

฀

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

Key Account Further Processing and Value Added Sales (US$ millions)

U.S. APMEA

Select Key Accounts

CAGR 2009-14 +16.4%

22

2004 2014 9M15

China Malaysia Thailand South Korea Australia

109 344 602

APMEA | Differentiated Positioning

฀

Keystone is well positioned to capture growth in the region…

Slaughtering Processing Others

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

฀

... with operations in the high-growth markets

도니버거숙대점-Doni Burger

CAGR 2004-14 12%

Revenues in USD Million

Selected Clients

23

Food Safety & Quality | Strong Reputation

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

 Works with suppliers to ensure compliance with company standards  Implements uniform performance metrics for key food safety and quality indicators  Tests for next generations of pathogens and chemical contaminants  Adopts the latest technical innovations to reduce risk  Shapes industry-wide programs by leading councils and organizations, such as:

• National Advisory Committees, National Chicken Council, American Meat Institute, SAFE, among
• thers

Recognized Leadership in Food Safety Leader in Anticipatory Issue Management Award Winning Product Quality

24

Keystone | Other Differentials

Research & Development of New Product / Innovation

฀ 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 Corporate Social Responsibility

฀ A leader in animal welfare

programs and practices

฀ Operating at nearly 80% below the

OSHA Food and Beverage industry average for recordable injuries

Marfrig Beef

26

Marfrig Beef | Profile

฀

Beef and lamb-based meatpacker with wide footprint in South America

• Revenues of R$9.9 billion (52% of Marfrig Group) in

2015

• Vast brand portfolio, with increasing export focus

฀

3rd largest beef producer in the world, 2nd in Brazil and 1st in Uruguay

฀

Unique South American footprint, with 16%

• f

slaughtering coming from non- Brazilian plants

• 25 production sites and 7 distribution centers in Brazil,

Uruguay and Chile

• Unique positioning in the South American beef region,

enhances local and international competitiveness and sanitary risk control

฀ Revenue Breakdown – 2015

% by Channel/ Market % by Protein

78% 22%

Brazil Uruguay/Chile

75% 10% 15%

Fresh Beef Processed Lamb, Leather and Other

27

Marfrig Beef | Production Structure

 19 units  13,500 employees  3.8 million cattle heads/year of total authorized capacity  2.7 million cattle heads/year of operating authorized capacity  2.2 million cattle heads/year of effective capacity

Brazil Uruguay and Chile

 8 units  3,200 employees  830 thousand heads of cattle/year  2.1 million heads of lamb/year

Slaughtering Processed food Slaughtering/Processing Distribution Center Other

28

Marfrig Beef | Strategic Goals

Grow volume and average prices Continuous focus on cash generation Productivity Agenda Maximize South America’s exporting platform

29

Marfrig Beef| Productivity Agenda

฀

Use

• f

benchmarks to improve efficiency in all

• perations

฀

Adoption of a rigorous budget process with diminishing cost targets:

฀

Maintenance;

฀

Overtime;

฀

Telecom;

฀

Utilities;

฀

Traveling expenses;

฀

IT;

฀

General expenses and other costs.

฀

Use of cheaper energy sources and reduction in the loss of temperature in the cold chambers

฀

Improvement of performance level and optimization the production units, aligning with internal benchmarks

Productivity Agenda’s Conceptual Savings Curve and Actual/Projected Savings

Initial Level After first improvement cycle Benchmark

Costs Time

2H14 R$30m 2015 R$96m

Expected additional savings between R$50.0 and R$60.0 million in 2016

2015 Actual Savings 1Q15 2Q15 3Q15 4Q15 R$ 96m

30

฀ 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.)

Marfrig Beef | Brazilian Market

Growth 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

14.9 17.6 25.2 14.7 2012 2013 2014 1S2015

31

฀ 4Q15 Export destinations

Marfrig Beef Brazil (% on revenues)

Marfrig Beef | Brazil Exports

฀ The opening of new markets promotes

growth in exports for Brazilian beef

฀ Share of Exports

Marfrig Beef Brazil (R$ million and % on revenues)

33% 1% 22% 27% 6%

716 773 890 770 922 939 1,097 44% 43% 45% 43% 48% 49% 52%

1T14 2T14 3T14 1T15 2T15 3T15 4T15

Main Importers Status for Brazilian Exports USA Awaiting 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

32

฀ 4Q15 Export destinations

Marfrig Beef Uruguay (% on revenues)

24% 1% 24% 11% 32%

Marfrig Beef | Uruguay Exports

฀ Uruguay has access to the main beef

import markets

฀ Share of Exports

Marfrig Beef Uruguay (US$ million and % on revenues)

7%

98 134 99 119 99 91 97 63% 67% 57% 65% 63% 59% 62%

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 4Q15

Main Importers 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

33

Marfrig Beef | Relationship programs

34

Marfrig Beef | Animal Welfare

฀

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 Animal Welfare

• Training of people handling

animals

• Modern fleet for Cattle

Transportation

• Animal Welfare 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 world’s best animal welfare

• practices. In the BBFAW’s 2015 Report, the

Company was classified as Tier 2 and is the best- positioned Brazilian multinational company.

35

Marfrig Beef | Sustainability

• Marfrig club promotes the production of sustainable, safe and legal beef
• 3,512 farm members as of September 2015
• Marfrig is a signatory of the Criteria for Industrial Scale Cattle and

Beef Products Operations in the Amazon Biome

• 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
• 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 environmental, social and economic practices as well as good animal welfare and production management practices

Financial Results

4Q15/2015

37

2015 Achievements

฀ Simpler and focused operation but still highly globalized.

฀ Approximately 60% of the operations is based outside Brazil. ฀ Brazilian domestic market is only 21% of global revenues.

฀ Focus on profitability: better operational efficiency and priority attention to higher margins sales channels.

฀ Capacity adjustment in Brazilian operation to reflect the current cattle availability for slaughter.

฀ Strategic and financial discipline: search for a higher return on capital.

฀ Explore the South American beef competitiveness and expand into higher value-added products. ฀ Keystone to continue the well succeeded strategy of growing in APMEA and Key Accounts.

฀ Liability Management process:

฀ Reduction of US$1.1 billion in gross debt in 2015 and US$684 million in 4Q15; ฀ Commitment to decrease Company’s leverage; ฀ High liquidity level.

38

Guidance 2015

Target 2015 (1) 2015 Combined(4)

Net Revenue

R$ 23 a R$ 25 billion R$ 25 billion

Adjusted EBITDA Margin (2)

8.0% - 9.0% 8.5%

CAPEX

R$ 650 million R$ 556 million

Free Cash Flow

(3)

R$ 100 to R$ 200 million R$ 213 million

(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

• perations:

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

39

Financial Performance| Consolidated

฀ Net Revenue

(R$ million)

฀ 2015: performance positively driven by (i) Keystone growth (in dollars), (ii) better

sales price of Marfrig Beef Brazil and (iii) the exchange rate devaluation.

฀ 4Q15: better average sales price and the Real devaluation against the USD offset

the lower sales volume.

+24% +18%

40

2015

Financial Performance| Consolidated

฀ Consolidated Net Revenue Profile

By business

2014 2014 2015

By currency

Higher exposure to non-BRL currencies reflects the Company’s strategy

• n growing exports

59% 50%

41

฀ Gross Profit and Gross Margin

(R$ million and %)

฀ Solid results from Keystone and the continued Real depreciation against the USD

boosted Marfrig consolidated Gross Profit both in 4Q15 and 2015.

+16% +16%

Financial Performance| Consolidated

42

• 1%

+20%

฀ SG&A and SG&A/Net Revenue

(R$ million and %)

฀ 2015: SG&A/Net Revenue decrease reflects Marfrig’s efforts to reduce fixed costs

in line with the “Focus to Win” program.

฀ 4Q15: increase of 20% mainly driven by the effect of foreign exchange on the

translation of the international operations to the Brazilian Real.

Financial Performance| Consolidated

43

฀ Adjusted EBITDA and EBITDA Margin

(R$ million and %) +32% +19%

฀

2015: strong performance explained by better efficiency in the Brazilian beef

• peration and Keystone solid

performance.

฀

4Q15: gross margin expansion at Keystone and continued good performance in Brazil led to EBITDA of R$527 million in the quarter.

Financial Performance| Consolidated

Breakdown 2015 Breakdown 4Q15

44

Net Profit/Loss | Consolidated

฀ Continued Operations Net Loss

(R$ million)

฀

Continued operations net loss was R$63 million in 4Q15.

45

Highlights | Keystone

฀ Total Volume

(000 Ton)

4% 23% +7%

฀ 2015: strong volume growth in all segments in APMEA plus strong Key

Accounts growth in the U.S.

฀ 4Q15: total volume in line with the same period of 2014, with improved sales

mix.

46

Highlights | Keystone

฀ Net Revenue

(US$ million)

• 3%

8%

22% 29% Key Account (% Net Revenues)

฀ 2015: 8% increase in sales driven by the continuous growth in APMEA and Key

Accounts.

฀ 4T15: down from 4Q14 due to the impact of lower sales prices in the U.S.

22% 25%

47

Highlights | Keystone

฀ Adjusted EBITDA and Margin

(US$ million and %) +17% +12%

฀ 2015 and 4Q15 solid result explained by:

฀

Better sales mix and Key Accounts expansion

฀

Lower commodities prices, i.e. meat cost and grains

฀

Efficiency gains in both regions

48

Highlights | Marfrig Beef

฀ Marfrig Beef Net Revenue

(R$ million)

฀ Marfrig Beef Revenue Breakdown by market

(R$ million)

% of revenues related to international operations 55% 62% 54% 59%

4Q14 4Q15 2014 2015

+6% +2%

49

Beef Brasil | Focus on Profitability

฀ Food Service Share of Brazilian’s

Domestic Market Revenue

(R$ million)

฀ Exports Share

(% Beef Brazil Revenues)

% Food Service

• 15%
• 5%

+510bps +340bps

฀ Given the Brazilian economy

slowdown and lower cattle availability, Marfrig Beef strategy was to prioratize higher value- added channels.

50

Sales | Marfrig Beef Brazil

+73% +90%

฀ Growth in Premium Brands sales

volume

฀ Exponential growth of export

sales to China 14x

+

Demand Planning

+

Routing

+

Sales Process

+

Proper Variable Compensation

+

Field Technology

+

Management System

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

51

+16%

• 3%

Highlights | Marfrig Beef

฀ Adjusted EBITDA and Adjusted EBITDA Margin

(R$ million and %)

฀ 2015: lower sales volume, affected by cattle availability, was offset by improved

• perational efficiency and currency devaluation.

฀ 4Q15: EBITDA in the quarter was impacted by lower sales volume and margins,

influenced by the weak performance of Uruguay operation.

52

Liability Management Process (1/2)

฀ Initiatives

US$375m

Tender Offer

US$59m

US$406m US$64m

Spot Market Face Value Face Value

Bond Repurchase – 4Q15

฀ 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.

53

Liability Management Process (2/2)

฀ 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

54

Debt Maturity Schedule & Indicators

R$ million Ratios 4Q14 3Q15 4Q15 Leverage:

Net Debt / EBITDA LTM (Ex FX Chg.) 3.42x 0.06x 0.54x Net Debt / EBITDA LTM 4.98x 2.12x 2.26x Net Debt / Continued Operations Annualized EBITDA (*) 3.83x 3,77x 3.38x

Managerial Indicators:

Average Cost (p.a.) 7.65% 7.95% 7.88% Current Liquidity 1.79 2.27 1.82 Duration (months) 49 43 50

4Q2015 3Q2015

Gross Debt 12,122 Net Debt 7,118 Gross Debt 15,049 Net Debt 7,168

(*) Continued operations only in 2015

3 years covered, not considering the additional liquidity from Keystone’s revolver

55

4Q15 Cash Flow | Consolidated

Continued Operations

(R$ million)

56

2015 Cash Flow | Consolidated

* Discontinued Operations: Moy Park, Argentina, Marfood and MFG Agropecuária.

฀ Free Cash Flow from continued operations, excluding the effects of

transactions with discontinued operations* of approximately R$308 million, was R$103 million. Continued Operations

(R$ million)

57

2016 Priorities

฀ Maintain excellence on delivering differentiated service to our clients ฀ Capture the opportunities of the global protein market:

฀ Keep growing Keystone division (USA and APMEA); ฀ Grow and improve profitability on Marfrig Beef’s exports (China, USA and

• thers).

฀ Keep a high utilization rate of our assets:

฀ Better

• perational

efficiency and fixed costs reduction, without loosing geographic diversification.

฀ Financial and cost discipline:

฀ Gross debt reduction; ฀ Commitment to reduce leverage; and ฀ Maintaining free cash flow generation.

58

Guidance 2016

2015 Continued Operations 2016 (4)

Net Revenue R$19 billion R$22 to 24 billion Adjusted EBITDA Margin (1) 9.5% 8.5 to 9.5 % Capital Expenditures (CAPEX) R$448 million R$450 to 600 million Free Cash Flow (2)(3) R$103 million R$100 to 250 million

(1) Excluding non-recurring items. (2) 2015 free cash flow excludes the effects of transactions with the discontinued

• perations in the approximate amount of R$308 million.

(3) Free cash flow after capital expenditures, interest expenses and income tax. (4) Assumptions based on exchange rate of R$4.10/US$1.00.

59

Bonds & Rating

Maturity Currency Notion (mm) Cupom 2016 USD 183.8 9.625% 2017 USD 155.3 9.875% 2018 USD 574.0 8.375% 2019 USD 711.0 6.785% 2020 USD 680.5 9.500% 2021 USD 29.1 11.25%

฀ Issued Bonds ฀ Rating

Agency National Scale Int´l Scale Perspective S&P

br BBB B+

Stable FitchRatings

BBB+bra B+

Positive Moody´s

• B2

Stable

Why Marfrig?

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Why Marfrig? | Stock Price Upside

฀ Marfrig is trading below its EV/EBITDA peers average ฀ Most analysts are recommending the stock

฀ “Sector’s most appealing value call” – Pedro Leduc, JP Morgan ฀ “Consistency to drive continuous stock performance” – Thiago Duarte, BTG Pactual ฀ “Management

has delivered its turnaround plan so far, generating value to its shareholders” – Viccenzo Paternostro, CS

฀ “We have a positive view on the company´s future prospects” – Antonio Barreto, Itaú ฀ “We maintain our Outperform recommendation reflecting an upside of 65% from our

target price” – Luciana Carvalho, BB Investimentos

฀ Potential upside:

฀

Deleveraging process + cash flow generation growth

฀

Competitive assets with differentiated position in South America and Asia

฀

One of the largest protein players in the global market – highly diversified (geographically and product portfolio)

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Why Marfrig? | Leading Player

฀ One of the largest and most diversified protein player worldwide ฀ One of the dominant players in South America: main region to support the

growing international demand with grass fed, antibiotic-free beef

฀ Largest player in Uruguay, already supplying the USA and Chinese markets,

with high quality and fully traceable meat

฀ 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

Attached files

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Andrew Murchie Marfrig Beef Brazil Marcelo Secco Marfrig Beef Southern Cone

Corporate Structure

Martin Secco CEO - Marfrig Global Foods CEOs - Business Units Ricardo Florence VP – Finance - CFO Marcelo Di Lorenzo VP – Strategic Planning & 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

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Shareholder structure

MMS BNDES Participações Brandes Investments Skagen AS Free Float

32.1% 19.6% 12.3% 5.4% 0.1% 30.5%

Management +Tresuary As of January 2016

Marfrig Global Foods

March 2016