BRF S A : 3Q20 Financial Statements

Interim

Financial

Information

September 30, 2020

(A free translation of the original in Portuguese)

BRF S.A. | INTERIM FINANCIAL INFORMATION - September 30, 2020

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INDEX
STATEMENT OF FINANCIAL POSITION...........................................................................................................................................................................................	4
STATEMENT OF INCOME (LOSS)........................................................................................................................................................................................................	5
STATEMENT OF COMPREHENSIVE INCOME (LOSS).................................................................................................................................................................	6
STATEMENT OF CHANGES IN EQUITY.............................................................................................................................................................................................	7
STATEMENT OF CASH FLOWS .............................................................................................................................................................................................................	8
STATEMENT OF VALUE ADDED..........................................................................................................................................................................................................	9
MANAGEMENT REPORT ......................................................................................................................................................................................................................	10
1.	COMPANY'S OPERATIONS .............................................................................................................................................................................................	37
2.	BASIS OF PREPARATION AND PRESENTATION OF INTERIM FINANCIAL STATEMENTS ..............................................................	42
3.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ......................................................................................................................................	43
4.	CASH AND CASH EQUIVALENTS .................................................................................................................................................................................	43
5.	MARKETABLE SECURITIES ...........................................................................................................................................................................................	44
6.	TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES .....................................................................................................................	44
7.	INVENTORIES.......................................................................................................................................................................................................................	46
8.	BIOLOGICAL ASSETS.........................................................................................................................................................................................................	47
9.	RECOVERABLE TAXES .....................................................................................................................................................................................................	49
10.	INCOME AND SOCIAL CONTRIBUTION TAXES.....................................................................................................................................................	51
11.	JUDICIAL DEPOSITS ..........................................................................................................................................................................................................	53
12.	INVESTMENTS .....................................................................................................................................................................................................................	54
13.	PROPERTY, PLANT AND EQUIPMENT, NET ..........................................................................................................................................................	55
14.	INTANGIBLE ASSETS ........................................................................................................................................................................................................	57
15.	LOANS AND BORROWINGS............................................................................................................................................................................................	59
16.	TRADE ACCOUNTS PAYABLE .......................................................................................................................................................................................	63
17.	SUPPLY CHAIN FINANCE................................................................................................................................................................................................	63
18.	LEASES.....................................................................................................................................................................................................................................	64
19.	SHARE-BASED PAYMENT...............................................................................................................................................................................................	67
20.	EMPLOYEES BENEFITS PLANS....................................................................................................................................................................................	68
21.	PROVISION FOR TAX, CIVIL, LABOR AND OTHER RISKS ................................................................................................................................	69
22.	EQUITY ....................................................................................................................................................................................................................................	70
23.	EARNINGS (LOSS) PER SHARE.....................................................................................................................................................................................	71
24.	FINANCIAL INSTRUMENTS AND RISK MANAGEMENT ...................................................................................................................................	72
25.	SEGMENT INFORMATION ..............................................................................................................................................................................................	83
26.	NET SALES .............................................................................................................................................................................................................................	85
27.	OTHER OPERATING INCOME (EXPENSES), NET.................................................................................................................................................	85
28.	FINANCIAL INCOME (EXPENSES), NET ...................................................................................................................................................................	86
29.	STATEMENT OF INCOME BY NATURE.....................................................................................................................................................................	87
BRF S.A. | INTERIM FINANCIAL INFORMATION - September 30, 2020	2

30.	RELATED PARTIES - PARENT COMPANY ..............................................................................................................................................................	87
31.	COMMITMENTS...................................................................................................................................................................................................................	90
32.	TRANSACTIONS THAT DO NOT INVOLVE CASH .................................................................................................................................................	90
33.	EVENTS AFTER THE REPORTING DATE .................................................................................................................................................................	90
34.	APPROVAL OF THE INTERIM FINANCIAL INFORMATION.............................................................................................................................	92
COMENTARY ABOUT THE COMPANY PROJECTIONS BEHAVIOUR ..................................................................................................................................	93
BREAKDOWN OF THE CAPITAL BY OWNER (NOT REVIEWED)........................................................................................................................................	93
INDEPENDENT AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION..............................................................................	94
OPINION OF THE AUDIT AND INTEGRITY COMMITTEE.......................................................................................................................................................	95
STATEMENT OF EXECUTIVE BOARD ON THE INTERIM FINANCIAL INFORMATION AND INDEPENDENT AUDITOR'S REPORT ....	96

BRF S.A. | INTERIM FINANCIAL INFORMATION - September 30, 2020

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(in thousands of Brazilian Reais)

STATEMENT OF FINANCIAL POSITION

		Parent company		Consolidated			Parent company		Consolidated
ASSETS	Note	09.30.20	12.31.19	09.30.20	12.31.19	LIABILITIES	Note	09.30.20	12.31.19	09.30.20	12.31.19
CURRENT ASSETS						CURRENT LIABILITIES
Cash and cash equivalents	4	4,501,817	1,368,980	11,398,587	4,237,785	Loans and borrowings	15	4,276,437	3,033,034	4,398,427	3,132,029
Marketable securities	5	311,048	396,994	313,091	418,182	Trade accounts payable	16	7,288,352	5,270,762	8,098,659	5,784,419
Trade and other receivables	6	6,497,572	6,153,937	2,894,853	3,090,691	Supply chain finance	17	1,121,372	842,037	1,121,372	842,037
Inventories	7	4,686,542	2,786,147	6,336,613	3,887,916	Lease liability	18	252,672	313,058	326,143	376,628
Biological assets	8	1,829,790	1,545,127	1,903,441	1,603,039	Payroll, related charges and employee profit sharing		1,044,425	754,032	1,089,380	825,254
Recoverable taxes	9	276,921	274,480	343,936	473,732	Tax payable		238,152	268,193	362,437	517,208
Recoverable income tax and social contribution	9	25,281	40,291	59,896	152,486	Derivative financial instruments	24	783,613	151,722	793,361	153,612
Derivative financial instruments	24	148,376	193,740	153,421	195,324	Provision for tax, civil and labor risks	21	1,067,456	1,081,103	1,071,964	1,084,308
Restricted cash		1	296,294	1	296,294	Employee benefits	20	87,996	87,996	97,596	95,919
Assets held for sale		15,637	16,671	35,659	99,245	Advances from related parties	30	8,868,203	5,364,164	-	-
Other current assets		364,104	495,743	495,714	590,733	Other current liabilities		249,885	329,166	752,965	512,591
Total current assets		18,657,089	13,568,404	23,935,212	15,045,427	Total current liabilities		25,278,563	17,495,267	18,112,304	13,324,005
NON-CURRENT ASSETS						NON-CURRENT LIABILITIES
LONG-TERM RECEIVALBLES						Loans and borrowings	15	18,535,617	13,395,970	21,616,002	15,488,250
Marketable securities	5	14,995	14,891	382,283	307,352	Trade accounts payable	16	6,402	12,347	6,402	12,347
Trade and other receivables	6	57,228	71,029	57,244	71,029	Lease liability	18	1,907,641	1,939,494	2,072,500	2,054,552
Recoverable taxes	9	5,253,866	5,167,016	5,253,842	5,169,547	Tax payable		176,808	190,257	176,808	190,257
Recoverable income tax and social contribution	9	55,025	264,428	61,637	269,263	Provision for tax, civil and labor risks	21	742,872	709,760	743,202	710,061
Deferred income taxes	10	1,983,517	1,808,494	1,999,083	1,845,862	Deferred income tax	10	-	-	129,212	85,310
Judicial deposits	11	565,287	575,681	565,364	575,750	Liabilities with related parties	30	41,039	960,056	-	-
Biological assets	8	1,097,795	1,016,642	1,169,365	1,081,025	Employee benefits	20	550,203	506,791	675,625	593,555
Receivables from related parties	30	339	234	-	-	Derivative financial instruments	24	21,354	3	21,354	3
Derivative financial instruments	24	223	49,991	223	49,991	Other non-current liabilities		279,674	482,109	286,972	1,093,942
Restricted cash		24,297	-	24,297	-
Other non-current assets		72,250	78,516	76,975	85,537
Total long-term receivables		9,124,822	9,046,922	9,590,313	9,455,356	Total non-current liabilities		22,261,610	18,196,787	25,728,077	20,228,277
						EQUITY	22
						Capital		12,460,471	12,460,471	12,460,471	12,460,471
						Capital reserves		140,626	192,845	140,626	192,845
Investments	12	12,599,699	6,499,517	18,730	14,880	Accumulated losses		(3,522,245)	(3,996,985)	(3,522,245)	(3,996,985)
Property, plant and equipment, net	13	11,046,571	11,333,302	12,227,225	12,276,889	Treasury shares		(123,938)	(38,239)	(123,938)	(38,239)
Intangible assets	14	3,198,924	3,139,532	5,410,770	4,908,079	Other comprehensive loss		(1,867,982)	(722,469)	(1,867,982)	(722,469)
						Attributable to controlling shareholders		7,086,932	7,895,623	7,086,932	7,895,623
						Non-controlling interests		-	-	254,937	252,726
Total non-current assets		35,970,016	30,019,273	27,247,038	26,655,204	Total equity		7,086,932	7,895,623	7,341,869	8,148,349
TOTAL ASSETS		54,627,105	43,587,677	51,182,250	41,700,631	TOTAL LIABILITIES AND EQUITY		54,627,105	43,587,677	51,182,250	41,700,631

The accompanying notes are an integral part of the interim financial information.

BRF S.A. | INTERIM FINANCIAL INFORMATION - September 30, 2020

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