BRF S A : 3Q19 Results Presentation

3Q19 Earnings

November 8, 2019

Disclaimer

This presentation may contain statements that express BRF S.A. ("BRF") management's expectations, beliefs and assumptions about future events or results. Such statements are not historical facts and are based on currently available competitive, financial and economic data of the industries in which BRF operates.

The verbs "anticipate", "believe", "estimate", "expect", "forecast", "plan", "predict", "target", "aim", "seek" and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future BRF performance. The factors that might affect performance include, but are not limited to: (i) market acceptance of BRF's products;

1. volatility related to the Brazilian economy, as well as the economies of the other countries in which BRF also has relevant operations, the financial and securities markets and the highly competitive industries BRF operates in; (iii) changes in domestic and foreign legislation and taxation, as well as in government policies related to the domestic and foreign animal

protein and related markets; (iv) increasing competition from new entrants to the Brazilian and international markets; (v) ability to keep up with rapid changes in the regulatory and technological environments; (vi) ability to maintain an ongoing process for introducing competitive new products and services while maintaining the competitiveness of existing ones; (vii) ability to attract customers in domestic and foreign jurisdictions. Other factors that could materially affect results can be found in BRF's Reference Form and in the annual report on Form 20-F, as filed with the U.S. Securities and Exchange Commission, particularly under the "Risk Factors" session.

All forward-looking statements in this presentation are based on information and data available as of the date they were made and BRF undertakes no obligation to update them in light of new information or future development.

This presentation does not constitute an offer to sell or a solicitation to purchase any security.

2

OPENING REMARKS

LORIVAL LUZ

GLOBAL CEO

3

Consolidated results (Continuing operations)

3Q19 results reflect the evolution of our business fundamentals

• Net Revenue of R$8.5 billon with gross margin of 24.8%
• Adjusted EBITDA of R$1,609 million and Adjusted EBITDA margin of 19.0%
• Excluding tax-relatedevents1, Adjusted EBITDA of R$1.142 million and Adjusted EBITDA margin of 13.5%
• Net income of R$446 million in 3Q19 and accumulated R$523 million in 2019
• Free cash generation of R$1.4 billion in 3Q19 and R$3.0 billion in 2019

1 Net effect of R$467 million related to the ICMS exclusion from the PIS/COFINS calculation basis.

4

Consolidated results (Continuing operations)

3Q19 results reflect the evolution of our business fundamentals

• Cash position of R$7.7 billion with net debt of 13.8 billion and an average maturity of 4.4 years
• Drop in net leverage to 2.90x1 (3.21x excluding IFRS16 effects)
• Revision1 of net leverage guidance to 2.75x at the end of 2019
• 3 plants licensed to export to the Chinese market
• • Pork: Lucas do Rio Verde (MT) - incremental potential of 40% vs. current volume2
  • Poultry: Lucas do Rio Verde (MT) - incremental potential of 20% vs. current volume2
  • Offals: Campos Novos (SC) - incremental volume of approximately 5,000 tons/year2

1 According to Material Fact released on November 8, 2019;

2 Compared to current volumes exported to China.

5

Memorandum of Understanding (MOU) - SAGIA

Expand and consolidate our presence in the Saudi market

				Saudi Arabia
Turkey								»
	Syria		» Represent	~1/4	of	total
	Iraq		volume the Halal market	»
Egypt	Saudi		» #1	Market	Share	with
	Arabia	EAU	approx. 35%
		Oman
	Yemen	» #1 Top of Mind	with Sadia	»
			brand
			» Own distribution

CAPEX of around US$120 million

Estimated installed capacity of 50,000 tons/years for the production of breaded and marinated products, hamburgers, among others

Products will be mostly destined to the Saudi market, which can

also be an exportation hub in the region

6

Grains environment and protein performance

Higher protein prices boosted producer's margin

Soybean & Corn Price

Whole Chicken and Pork Carcass Price

Cepea/ESALQ

B3

8,5

8,5

55

100

3Q18

3Q19

3Q18

3Q19

50

+3%

90

7,5

7,5

+36%

(R$/bag)Corn

45

80

(R$/bag)Soybean

(R$/kg)ChickenWhole

6,5

6,5

(R$/kg)CarcassPork

40

70

5,5

5,5

35

-1%

60

4,5

4,5

30

50

25

40

3,5

3,5

+16%

20

30

2,5

May-18

May-19

2,5

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Sep-17

Nov-17

Jan-18

Mar-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

Jul-19

Sep-19

Corn

Future Corn²

Soybean

Future Soybean¹

Average Price

Whole Chicken

Pork Carcass

Average Price

»

»

Corn: significant supply in Brazil, but with currency volatility and uncertainties related to the US harvest

Soybean: Unstable scenario due to China-US trade war and smaller US crop

• Better balance between supply/demand in local market benefitted price recovery
• African Swine Fever impacts on demand reflect on protein prices in the international market

¹ Source: Bloomberg; ² B3 quotes in October 2019.

7

African Swine Fever (ASF) impacts

Reduction in the Chinese herd size has affected international pork market prices

China's Inventory	China's Reference Price
(100 Base = Sep-18)
(in million heads)

425													70	250
403,0										-44%	230
	63,7														∆ since lowest levels:	+153p.p.
375								∆ since		-47%									+104p.p.
									Sep-18:		-40%	60	210							+79p.p.
325
																				+70p.p.
														190
275													50
													170
225													226,0
40,7													150
175													40
													130
125													34,0
													110
													30
75													24,3	90
25													20	70
	Sep-18	Oct-18	Nov-18	Dec-18	Jan-19	Feb-19	Mar-19	Apr-19	May-19	Jun-19	Jul-19	Aug-19	Sep-19	Sep-18	Oct-18	Nov-18	Dec-18	Jan-19	Feb-19	Mar-19	Apr-19	May-19	Jun-19	Jul-19	Aug-19	Sep-19
				# Pork		# Sow herd		# Piglet					Piglet		Sow Herd		Live Hog		Pork Carcass Wholesale

Source: Ministry of Agriculture of the People's Republic of China (MOA)

Source: Bloomberg and Boyar (Sow herd)

8

São Paulo

Nova York

12 de novembro	November 14th
Horário: 8h às 12h	From 8:30 am to 12:00 pm
Local: Casa Charlô	Venue: NYSE
Rua Tabapuã, 1353	11 Wall Street, NY

9

FINANCIAL PERFORMANCE

3Q19

CARLOS MOURA

CHIEF FINANCIAL AND

INVESTOR RELATIONS OFFICER

10

Disciplined execution of the Strategic Plan

Continued recovery path

	Adjusted EBITDA
	and Margin*
Gross Profit and Margin	(R$ million)
+178%
(R$ million)
	+4.0%

Volumes

(Thousand, Tons)

	-1%
		+1.3%
1.120
		1.104
	1.090
3Q18	2Q19	3Q19

Net Revenue

(R$ million)

	+8%
		+1.5%
	8.338	8.459
7.802
3Q18	2Q19	3Q19

	+58%
		+0.2%
	25,1%	24,8%
17,0%	2.092	2.096
1.324
3Q18	2Q19	3Q19

18,6% 19,0%

7,4% 14,6% 13,5%

1.547 1.609

328 467

1.219 1.142

579 Ex-ICMSEx-ICMS

3Q18 2Q19 3Q19

*Includes net effect of R$328 million in 2Q19 due to the payment of ICMS for staple basket products provision and the excluding ICMS from PIS/COFINS calculation basis, and net

effect of R$467 million in 3Q19 due to the exclusion of ICMS from PIS/COFINS calculation basis.	11

On a positive track to recover margins

Improved operational performance reflects our new momentum

Gross Margin		Adjusted EBITDA & Adjusted EBITDA Margin

25,1%

24,8% 23,5%

19,6%	18,9%	20,6%

17,0%	15,0%

24.156

21.899

8,4%

	7.031	7.067	7.802	8.289	7.359	8.338	8.459

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

9M18

9M19

Net Revenue		Gross Margin

		18,6%	19,0%
			16,2%
		14,6%
9,7%	10,2%	10,2%	13,5%
12,9%
	7,4%
5,0%	7,4%	7,4%
			3.904
			795

					1.547	1.690		3.109
					328	467
			843				1.620
			226		1.219	1.142
685		579	617	748
356
1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	9M18	9M19

Adj. EBITDA ICMS Adj. EBITDA Margin Adj. EBITDA Margin ex-ICMS

12

Net Debt Evolution: 3Q19 vs. 3Q18

Overcoming 2019 proposed goal

BRL million

16.323
						-R$2.538
		Cash Flow from Investments			million
	4.672	+R$226 milhões				13.785
		1.737	1.963	2.359
6,74x						2,90x
4,00						4,16
Net Debt	Operating	CAPEX	M&As	Cash Flow from		Net Debt
3Q18	Cash Flow			Financing Activities	1	3Q19
Real				Real

Net leverage (Net Debt/Adjusted EBITDA)

USD/BRL (PTAX)

¹ Including R$79 million effect from discontinued operations

13

Leverage & Debt Profile

Reduction in net leverage and debt reprofiling

Financial Leverage 3Q19 (R$ million)

6,74x		5,64x 2		Ex-IFRS16:
	1
			3,21x
	5,12x
		15.498	3,74x	2,9x
	15.610
	2.206	1.260
16.323	13.404	14.238	13.900	13.744

3Q18	4Q18		1Q19		2Q19	3Q19
	Pro forma Net Debt		Net Debt		Net Debt / Adj. EBITDA LTM

Debt Schedule 2Q19 | (R$ million)

Average Maturity: 3.2 years

1

	6.999					8.734
			4.543	3.118	3.139
		1.247
	Cash and	2019	2020	2021	2022	2023+
	equivalents

Gross Debt 3Q19 | R$21.5 billion

Subsidized lines		Capital
Agribusiness	1%	markets
Real

loans 21%

42%

Other and tax	2%	65%	58%
incentives	11%
Trade finance			Other
			currencies

Debt Schedule 3Q19 | (R$ million)

Average Maturity: 4.4 years

1

11.746

7.673

651 3.559 2.980 2.141

Caixa e equivalentes 2019

2020

2021

2022

2023+

1. Including pro forma adjustments from incoming funds related to the sale of assets in Argentina, Europe, and Thailand, the non-transferred portion to FIDC and FX=R$3.80/US$. Taking into consideration the accounting numbers, leverage is 5.97x in 4Q18.
2. Including pro forma adjustments from incoming funds remaining from the sale of assets in Argentina, Europe, and Thailand. Taking into consideration the accounting numbers, leverage is 6.14x in 1Q19.

3 Excludes R$118 million in 2Q19 and R$381 million in 3Q19 related to Derivative Financial Instruments Liabilities.	14

OPERATING

AND FINANCIAL PERFORMANCE

3Q19

SIDNEY MANZARO

VICE-PRESIDENT

BRAZIL MARKET

15

Brazil Segment

Profitable growth, aligned to the strategic planning

• Net Revenue up +6.3% y-o-y
• Continued increase in gross margin, reaching 24.6% in 3Q19, due to prices, better mix and operating efficiency
• Excluding ICMS effects, Adjusted EBITDA of R$541 million with 12.3% margin, up +35.8% y-o-y
• Continued focus on Innovation: 4 new cuts of seasoned pork ready for cooking, under Perdigão's "Na Brasa" line were launched in the quarter
• Brands recognized in the Top of Mind Award
• • Sadia: frozen meals category
  • Qualy: Top Margarine category
  • Deline: North region Top of Mind category

16

Brazil Segment

Rising profitability

Gross Margin		Adjusted EBITDA & Adjusted EBITDA Margin

		24,6%	23,0%
		24,0%	23,3%
			19,4%
20,8%	21,1%20,9%	21,2%	17,3%
			19,9%

	17,9%														12%
												11,7%		11%
															11%
											9,7%	9,5%
								12.404	9,4%
																2.172
			4.736				11.556
		4.123		4.082	4.382									8,0%
3.748	3.685	3.940				5,0%		7,0%				795
														790	1.008
												556		467
													328		1.377
												226			933
									352		398	374	462	541
									183	330
1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	9M18	9M19	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	9M18	9M19

Net Revenue		Gross Margin

Adj. EBITDA ICMS Adj. EBITDA Margin Adj. EBITDA Margin ex-ICMS

17

Brazil Segment

Consistent improvement in results

Adjusted EBITDA

and Margin

Volumes

(Thousand, Tons)

-2%

+8%

569		559
	519
3Q18	2Q19	3Q19

Gross Profit and Margin

(R$ million)

Net Revenue

(R$ million)

+24%

	+6%			+10%
	+7%	21,1%	24,0%	24,6%
		1.077
			982
		870
	4.382
4.123	4.082
		3Q18	2Q19	3Q19
3Q18	2Q19	3Q19

(R$ million)

	+36%
	+17%
	19,4%	23,0%
9,7%	11,3%	12,3%
1,008
	790
	467
	328
398	462	541
3Q18	2Q19	3Q19

18

OPERATING

AND FINANCIAL PERFORMANCE

3Q19

PATRICIO ROHNER

VICE-PRESIDENT

INTERNATIONAL MARKET

19

International Segment - Consolidated

EBITDA margin improvement despite seasonality

Adjusted EBITDA

and Margin

(R$ million)

Gross Profit and Margin

(R$ million)

+193.7%

Volumes

(Thousand, Tons)

+0.8%

-5.3 %

474	504	478
3Q18	2Q19	3Q19

Net Revenue

(R$ million)

	+10.6%
		-4.8%
	3.985	3.796
3.432
3Q18	2Q19	3Q19

			-2.2%
	+66.3%	17,4%	17,9%
		-7.8%
	26,3%	6,7%	693	678
	25,4%
16,9%	1.047	231
	965
580		3Q18	2Q19	3Q19
3Q18	2Q19	3Q19

20

International Segment - Consolidated

Sales breakdown

Volume 3Q19 | 478 Thousand Tons

(Volume 3Q18 | 474 Thousand Tons)

Per Geography

Per Protein

	Other 13%
Non-Halal
41%	Swine 8%

Halal

59%Poultry

79%

Per Product

FPP	Poultry Whole
12%
37%

Swine

9%

Poultry Parts

41%

21

Halal Market

High profitability in the region despite restriction in some markets

Volume 3Q19 | 275 Thousand Tons

(Volume 3Q18 | 281 Thousand Ton)

Processed

14%

(14%)Poultry

86%

(86%)

Net Revenue

(R$ MM)

		-5.2%
		-11.6%
	2.370
2.210		2.095
3Q18	2Q19	3Q19

Adjusted EBITDA (R$ MM)

Adj. EBITDA Margin (%)

		-4.6%
	370	-22.5%
301		287
13,6%	15,6%	13,7%
3Q18	2Q19	3Q19

• Iraqi was partially restricted to import products from Turkey
• Lower operating leverage, offset by strict expense control
• Prioritization of market's most profitable countries and channels

22

Other International Markets (Asia, Africa, Americas and Europe)

African Swine Fever has favored price dynamics in Asia

Volume 3Q19 | 203 Thousand Tons	Net Revenue
(Volume 3Q18 | 193 Thousand Tons)	(R$ MM)

		+39.2%
	Pork	+5.3%
	18%	1.615	1.701
	(17%)
	1.222
Poultry
69%
(71%)	Processed
	13%
	(12%)
	3Q18	2Q19	3Q19

• Average sale price: +32.3%
• Higher shipped volumes: +5.2%
• EBITDA Margin of 23.0% (+28.7 p.p. y-o-y), highest margin in recent years
• Best profitability of the last 3 years

Adusted EBITDA (R$ MM)

Adj. EBITDA Margin (%)

+21.2%

		391
	323
		23,0%
	20,0%
-5,7%
-70
3Q18	2Q19	3Q19

23

Q&A

24

Contatos RI:

[phone] [e-mail]

25