BRF S A : 4Q19 Results Presentation

4Q19 and 2019 Earnings

March 03, 2020

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; (ii) 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;

1. 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

2019: Anticipating the Execution of Our Strategy

2019	2020	2021-2023
Focus on operational excellence	Consolidate fundaments,	Seek inorganic growth
and development of a	combining leadership,	maintaining rigorous
high-performance organization	innovation and financial	execution and financial
aiming to reverse declining	strength, returning the	discipline, delivering
margins trend	margins to historical levels	margins above
		historical levels

4

2019: Results Overview

Margins above historical levels and back to profit

• Gross Margin of 24.1%in 2019, +8.0 p.p. y-o-y

• Adjusted EBITDA of R$5,317 million (+116% y-o-y) in 2019, with Adjusted EBITDA margin of 15.9% (+7.7 p.p. y-o-y)

» Excluding tax effects, Adjusted EBITDA of R$4,433 million (+98% y-o-y) in 2019, with Adjusted EBITDA margin of13.3% (+5.8 p.p. y-o-y)

• Net Incomeof continued operations of R$1,213 million in 2019vs. Loss of R$2,115 million in 20181
• Consistent net leverage reduction(2.50x vs. 5.12x2 in 4Q18)

1 Corporate net income in 2019 of R$297 million vs. loss of R$4,466 million in 2018.
2 According to adjustments made at that period. Ex-adjustments, net leverage reached 5.97x.	5

2019: Results Overview

Focus on strategic planning resulting in surpassing goals

• Culture: construction of a high-performance organization and team - the BRF Essence

• Management stability: Reduction of the Company's general turnover in 7% and in 50% at the top management

» Employees engagement level above 90%1 according to a survey with more than 38 thousand answers

• • • Return to the Corporate Sustainability Index Sole company in the food sector
  • Innovation: +120 SKUs launched worldwide
• Operational and Logistics Excellence: (i) reduction in losses; (ii) efficiency in the supply chain; (iii) SEO roll-out in progress; (iv) new licensed plants for exports

¹ According to Willis Towers Watson methodology

6

Initiatives and Investments

New Distribution Center in

Londrina (Paraná State)

»	Capacity of 20 thousand tons per month
»	100 thousand m2 total area
»	Capex of R$80 million
»	Supplying Paraná, Mato Grosso do Sul
	and São Paulo states

• 1st Brazilian chicken processing plant in Saudi Arabia: nearly US$120 million in investments
• Resumption of margarines production in Uberlandia: capacity of approximately 120 thousand tons/year
• Digital Transformation taking part in all Company's processes
  (Industry 4.0, SEO, HR, Compliance, and others)
• BRF HUB: connection to the Startup ecosystem (80 registered and 6 selected startups)
• BRF Innovation Scouts: collaborative Innovation (+1,000 received ideas)

» Sustainable: solar water heating, mobile

electrical equipment and LEED

3%

10%

certification

2023

2019

Revenue from Innovation

7

Grains scenario and protein performance

Sensitive changes in market dynamics

	Whole Chicken and Pork Carcass Price
Soybean & Corn Price (B3)
Cepea/ESALQ

120

4Q18

+3%

4Q19

100

9,5

10,5

+41%

9,5

90

8,5

100

80

7,5

8,5

80

(R$/saca)Milho

Oct-02

(R$/saca)Soja

(R$/kg)Frango

7,5

6,5

∆

R$53.25

70

6,5

60

35%

Feb-28

5,5

R$39.58

60

5,5

40

50

4,5

4,5

20

-6%

40

3,5

3,5

+10%

0

30

2,5

2,5

nov-17

mai-18

nov-18

mai-19

set-19

nov-19

set/17

nov/17

jan/18

mar/18

mai/18

jul/18

set/18

nov/18

jan/19

mar/19

mai/19

jul/19

set/19

nov/19

jan/20

mar/20

mai/20

jul/20

set-17

jan-18

mar-18

jul-18

set-18

jan-19

mar-19

jul-19

jan-20

Corn

Average

Future

Soybean

Average

Future

Chicken

Average Chicken

Average Pork

Pork

Corn

Corn2

Soybean

Soybean 1

Average Price

Average Price

Suíno (R$/kg)

• Corn: carryover inventories at low levels, however with 2020 crop forecast in record levels and lower export levels
• Soybean: Unstable scenario due to China-US trade war and coronavirus

• Global unbalance between supply/demand boosted prices
• African Swine Fever: supply hit with strong impact on protein prices in international markets

¹ Source: Bloomberg; ² B3 quotes in February 2020.

8

African Swine Fever (ASF) impacts

Reduction in Chinese herd size keeps affecting international pork market prices

China's Inventory (in million heads)

425	403,0	-50%
	75
375	∆ since	-55%
	Sep-18:	-53%
325	63,7		65

275																						55
225
																		200,9	45
40,7
175																						35
125																			28,6		25
75																			19,2
25																						15
	Nov-18	Jan-19	Mar-19	May-19	Jul-19				Nov-19	Jan-20
Sep-18		Sep-19
				# Pork					# Sow herd		# Piglet

Source: Ministry of Agriculture of the People's

Republic of China (MOA)

China's Reference Price (100 Base = Sep-18)

350

330

+258 p.p.

∆ since lowest

310

+167 p.p.

levels:

290

+146 p.p.

270

+151 p.p.

250

230

210

190

170

150

130

110

90

70

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Sep-18

Sep-19

Piglet

Sow herd

Live Hog

Pork Carcass Wholesale

Source: Bloomberg and Boyar (Sow herd)	9

Coronavirus and Avian Flu

Avian Flu may generate short-term opportunities, impacts need to be better understood

Coronavirus

while Coronavirus

Avian Flu

• 90,306 confirmed cases, totaling 3,085 deaths
• Concentration in China, which represents roughly 20% of the world's GDP, expanding to other continents
• Logistics effects and changes in global consumption profile, bringing uncertainties and volatility in 2020

• More than 100 confirmed cases and approximately 1.5 million slaughtered animals, 51% in Asia, 25% in Middle East and 24% in Europe
• In Europe, 21 cases in Poland, the largest chicken producer in the region - and Ukraine, which has already been banned from most Gulf markets

Source: Johns Hopkins University; OIE-World Organization for Animal Health

10

China: Demand for protein imports still in positive trend

Consumption (thousand tons)*				Balance (thousand tons)*
		2018		2019		Change				2018		2019		Change
				2019/2018						2019/2018
Beef		7,910	9,133	1,223		Production		71,640	59,463	-12,177
Chicken		11,595	13,235	1,640		Imports		3,095	4,945	1,850
Pork		55,398	42,513	-12,885		Consumption		74,903	64,881	-10,022
Total		74,903	64,881	-10,022

• Decrease in pork consumption of 12.9 million tons YoY (-23.3%), partially offset by increases in beef (+15.5% YoY) and chicken (+14.1% YoY)

• Imports do not make up for the production reduction caused by ASF
• Decrease in total protein consumption (-13,4% y-o-y)
• Deficit may have been compensated by wild animals consumption - size of this market is unknown
• Chinese government's recent ban on wildlife trade may incentivize the consumption of other proteins, potential of which is uncertain

*Source: USDA	11

Financial Performance

4Q19 and 2019

Carlos Moura

Chief Financial and Investor Relations Officer

Our performance at a new level

Sustainable price management, better trade execution and mix of channels/regions

Volumes		Net Revenue		Gross Profit and Margin
(Thousand tons)		(R$ million)		(R$ million)

		-1.5%
		4.441	4.373
+1.7%
1.153	1.173
4Q18	4Q19	2018	2019

		+10.8%
			33.447
		30.188
+12.1%
8.289	9.290
4Q18	4Q19	2018	2019

	25.5%		24.1%
18.9%		16.1%
		+65.9%
			8.077
+51.1%		4.868
1.570	2.373
4Q18	4Q19	2018	2019

13

On a positive track to recover margins

Significant improvement in operational performance

Net Revenue (R$ million) and Gross Margin (%)

25,1% 24,8% 25,5%

19,6%	20,6%
18,9%
	17,0%

9.290

	8,4%	7.802	8.289	8.338	8.459
			7.359
7.031	7.067

Adj. EBITDA (R$ million) and Adj. EBITDA Margin (%)

		18,6%	19,0%	15,9%
			15,2%
		14,6%	14,3%
9,7%	10,2%	13,5%	13,3%
	10,2%	8,2%
	7,4%
5,0%	7,4%		7,4%	5.317

884

														1.547	1.609	1.413	2.462	4.433
														328	467	89	226
												843
												226		1.219	1.142	1.324	2.236
									685				748
									356	579	617
									1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19	2018	2019
1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19	4Q19

Net Revenues Gross Margin

ICMS and staple food basket		Adj. EBITDA
Adj. EBITDA Margin		Adj. EBITDA Margin w/o ICMS and staple food basket

14

Net Income Resumption

Better operational performance coupled with tax effects boosted profitability

Net Income of Continued Operations (R$ million)

+R$3.3 bi

+R$377 mi	1,213
690

313

2018

4Q18

4Q19

2019

Total Corporate Net Income (R$ million)

+R$2.8 bi	+R$4.8 bi
680
	297
4Q18	2018
4Q19	2019

-2,125

-2,115

-4,466

15

Liability Management

Reduction in net leverage, debt reprofiling and prudential liquidity management

Gross Debt 4Q19 | R$18,774 million

Financial Leverage 4Q19 (R$ million)

Gross Debt 4Q184 |R$22,556 million

				Agribusiness	Capital
				loans 17%
	6.14x			markets		Real
5.97x			Other and tax		69%	41%
			3%
				incentives
	5,64x²				11%	59%
5,12x¹			Trade finance
				Other
	3.74x	Ex-IFRS16:	Ex-IFRS16:
		3.21x	2.83x		currencies
15.610	15.498		2.90x	2.50x
2.206	1.260	13.900	13.785	13.269	Debt Schedule 4Q19 | (R$ million)

			²				1Average Maturity: 3.0 years in 4Q18 to 4.6 years in 4Q19	9.036
13.404	14.238				7,005	3
							1.5003
							5.505		3.132	1.907	2.123	2.422
4Q18		1Q19		2Q19	3Q19	4Q19
Pro forma Net Debt		Net Debt	Net Debt / Adj. EBITDA LTM		Cash and	2020	2021	2022	2023	2024+
							equivalents

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$3.80/US$; 2. Including pro forma
adjustments from incoming funds remaining from the sale of assets in Argentina, Europe, and Thailand; 3. Revolving credit facility = R$1,5 billion; 4.Includes continued and discontinued operations	16

Financial Discipline

Cash generation directed to debt amortization

2019 Performance

• Operating cash flow of R$4.7 million
• Total CAPEX of R$1,877 million (including IFRS)
• Free cash flow generation of R$2.9 billion (including R$1.8 billion in divestments)
• Prepayment of loans with local banks totaling R$2,187 million, with maturities between January 2020 and August 2021
• Average financial cycle was 18.9 days, an improvement of 9.3 days vs. 2018
• Net leverage guidance1 for 2020 was reviewed to the range between 2.35x - 2.75x

1 According to the Material Fact released on March 3, 2020

17

Brazil Market

Performance

Sidney Manzaro

Vice-President

Brazil Segment

Successful strategy of recovering profitability through optimization of the product mix and sales channels

Coverage of

95%

of municipalities

(237,000

clients)

• Better trade execution, logistics efficiency, strict control of inventory levels
• • • Gross margin of 27.2% in 4Q19, best level since 1Q16
    • • Average prices increase of 11.2% y-o-y in Brazil, in line the Company's strategy of increasing profitability
    • Continuous focus on Innovation: +90 items launched in 2019
  • Commemorative Campaign: best performance since 2015, hitting record sales and active clients

19

Brazil Segment

Revenue increase with margin expansion

Volumes

(Thousand tons)

			-3.5%
		2.274	2.195
	-2.0%
621	608
4Q18	4Q19	2018	2019

Gross Profit and Margin

(R$ million and %)

	27,2%		24,5%
20,9%	20,3%
			+29.6%
			4.278
	+39.8%	3.301
989	1.383
4Q18	4Q19	2018	2019

Gross Profit

Gross Margin

Net Revenue

(R$ million)

			+7.3%
		16.293	17.489
	+7.4%
4.736	5.085
4Q18	4Q19	2018	2019

Adjusted EBITDA and Margin (Ex-tax effects)

(R$ million and %)

	14,8%		12,2%
7,0%		7,8%
		+68.6% 2.129
+127.6%	1.263
330	752
4Q18	4Q19	2018	2019

Adjusted EBITDA

EBITDA Margin Ex-tax effects

20

Brazil Segment

Profitability on an upward and sustainable trajectory

Net Revenue (R$ million)

and Gross Margin (%)

27,2%

			24,0%	24,6%
	20,8%	21,1%	20,9%
20%		17,9%	21,2%

			4.736		5.085
		4.123	4.082	4.382
3.748	3.685	3.940

		Adj. EBITDA (R$ million) and
		Adj. EBITDA Margin Ex-tax effects (%)
			14,8%
			12,3%		12,2%
24,5%	12%	9,7%	11,3%
		9,5%		2.129
		9,4%
20,3%				7,8%
17.489			7,0%
16.293		5,0%

1.263

752

				462	541
352	398		374
330
	183

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

2018

2019

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

2018

2019

Net Revenue		Gross Margin		Adj. EBITDA		Adj. EBITDA Margin ex-tax effects

21

Brazil Segment

Undisputed leadership in all segments - bimonthly readings

			Cold Cuts								Margarines
																54,6%
								54,1%	54,0%	53,8%	53,2%	54,2%	54,4%
49,9%	50,5%	49,1%	50,3%	49,5%	49,0%	48,8%

6Bi18

1Bi19

2Bi19

3Bi19

4Bi19

5Bi19

6Bi19

6Bi18

1Bi19

2Bi19

3Bi19

4Bi19

5Bi19

6Bi19

Frozen Meals

Franks & Sausages

49,2% 49,9% 48,0% 46,7% 45,4% 44,4% 44,4%

39,0%

38,0%

37,0%

37,7%

37,0%

36,2%

37,2%

6Bi18

1Bi19

2Bi19

3Bi19

4Bi19

5Bi19

6Bi19

6Bi18

1Bi19

2Bi19

3Bi19

4Bi19

5Bi19

6Bi19

Source: Nielsen	22

Brazil Segment

Consistent investments in brand equity generated a solid preference growth

Brand	Superior Quality	Flavor
attributes	Innovation	Socialization
Convenience
Value		"The more you know, the	"Shared meals
Proposition		better Sadia gets"	taste like Perdigão"
Preference		27,6%	14,2%
(2S 19 | Kantar)	+2,0p.p	+1,9p.p.
		vs. H1 2019	vs. H1 2019

Unique flavor Emotional bond Synonymous to the category

"All that is good must be spread"

51,4%

-2,4p.p.

vs. H1 2019

Source: Kantar Insights Tracking of Brands 2019

23

International Markets

Performance

Patricio Rohner

Vice-President

International Results (Continued Operations)

Regional diversification and adaptability drove results evolution

• 25 plants licensed in 2019, highlighting the plants approved to serve China - Lucas do Rio Verde/MT (poultry and swine), Lajeado/RS (swine) and Campos Novos/SC (piglet)
• Halal: A normalization year with margin recovery and important advances in strategic pillars. Challenging short-term in Turkey and Saudi Arabia
• Other International Markets: Asian Market boosted by African Swine Fever as of the second half of the year, while we increased our share in Japan, Chile and Mexico markets

25

International Segment - Consolidated

Strong EBITDA margin increase, even with seasonality

Volumes

(Thousand tons)

			+0.5%
		1.900	1.909
	+6.3%
468	497
4Q18	4Q19	2018	2019

Net Revenue

(R$ million)

			+14.0%
			14.899
		13.069
	+17.4%
3.342	3.924
4Q18	4Q19	2018	2019

Gross Profit and Margin

(R$ million and %)

	23,5%		24,1%
18,0%		15,8%
		+73.9% 3.596
+53.4%		2.068
601	921
4Q18	4Q19	2018	2019

Gross Profit Gross Margin

Adjusted EBITDA and Margin

(R$ million and %)

	14,5%		15,5%
6,0%		6,9%
		+158.5% 2.316
+185.4%
	571	896
200
4Q18	4Q19	2018	2019

Adjusted EBITDA

Adjusted EBITDA Margin

26

Halal Market

Profitability affected by the challenging scenario in some markets, offset by exchange rate depreciation

Volumes

(Thousand tons)

			-1.1%
		1.145	1.132
	-0.6%
292	290
4Q18	4Q19	2018	2019

Net Revenue

(R$ million)

			+5.0%
		8.302	8.719
	+2.4%
2.144	2.195
4Q18	4Q19	2018	2019

Gross Profit and Margin

(R$ million and %)

22,3%		21,2%+23.0%	24,9%
20,8%
	-4.2%	1.763	2.169
477	457
4Q18	4Q19	2018	2019

Gross Profit Gross Margin

Adjusted EBITDA and Margin

(R$ million and %)

9,1%		10,0%	12,7%
7,7%
			+34.3%
		828		1.111
	-13.7%
196	169
4Q18	4Q19	2018		2019

Adjusted EBITDA

Adjusted EBITDA Margin

27

Other International Market (Asia, Africa, Americas and Europe) African Swine Fever impacts in prices and volumes in the region as of the second half of the year

Volumes

(Thousand tons)

			+2.9%
		755	777
	+17.5%
177	208
4Q18	4Q19	2018	2019

Net Revenue

(R$ million)

		+29.7%
			6.181
		4.767
+44.2%
1.198	1.729
4Q18	4Q19	2018	2019

Gross Profit and Margin

(R$ million and %)

	26,9%		23,1%
10,3%		6,4%
+275.1%	+367.8%	1.427
	464	305
124
4Q18	4Q19	2018	2019

Gross Profit Gross Margin

Adjusted EBITDA and Margin

(R$ million and %)

23,2%19,5%

0,3%		1,4%
+9.925.0%	+1.664.4%	1.204
	401
4		68
4Q18	4Q19	2018	2019

Adjusted EBITDA

Adjusted EBITDA Margin

28

Closing

Remarks

Lorival Luz

Global CEO

2019 Recap and 2020 Forecast

2019

Resuming Profitability

Financial balance

Management stability

2020

Culture strengthening

Financial discipline

Resuming growth

Volatility environment: - Coronavirus

• ASF/Avian Flu
• Commodities
• Climate conditions
• Exchange rate variation

30

Q&A

IR Contact:

[phone] [e-mail]