Marfrig Global Foods S A : 1Q21 - Presentation

1Q21 - Earnings

Presentation

April, 2021

1Q21 Highlights

RESULTS

• Consolidated Net Revenue of R$ 17.2 billion: + 27.7% vs 1Q20
• • Net revenue by currency: Dollar and other 93% | Reais 7%
• Consolidated EBITDAadj of R$1.7 billion: +40% vs 1Q20
• EBITDAadj Margin of 9.9%: + 85 bps vs 1Q20
• Revenue & EBITDAadj by Operation: North America (73%|89%) and South America (27%|11%)
• • North America Operation: Revenue of US$2.3 billion and Margin EBITDAadj of 12.0%
  • South America Operation: Revenue of R$4.6 billion and Margin EBITDAadj of 4.6%
• Consolidated Net Profit: R$279 million vs loss of R$137 million in 1Q20

FINANCIAL / OPERATIONAL

• Operational Efficiency Program: Capture of R$ 80.8 million in 1Q21
• Average Cost of Debt: 4.66% p.a. vs 5.70% p.a. in 4Q20
• Average Debt Term: 5.1 years vs 3.5 years in 4Q20
• Financial Leverage: 1.68x in dolar (vs 2.84x in 1Q20) | 1.76x in real (vs 3.56x in 1Q20)
  SUBSEQUENT EVENTS / OTHER
• Dividends: Payment of R$ 0.20/share on April 30, 2021
• Buyback Shares: Up to 9.5 million shares, or 2.8% of the outstanding shares as of 3/9/21
• Sustainability: Advances Marfrig Verde+ Program in 1Q | Marfrig is the best rated globally in the sector
• Plant Plus in 1Q21: Constitution of the executive's directors | Appointment of Mr. John Pinto for the position of CEO

Operational Results

3

North America Operation 1/2

Volume

(thousand tons)

Net Revenue

(US$ million)

Gross Profit

(US$ million)

EBITDAAdJ & Margin

(US$ milion)

		+1.3%
		508
502
83	79

		+5.9%
		2,315
2,185
294
287

14.6%

10.5%

8.0%

12.0%

419429

1Q20 1Q21

Exports Domestic Market

1,898 2,021

1Q20 1Q21

Exports Domestic Market

	47.0%
	337
229
1Q20	1Q21

Gross Margin

Gross Profit

	+58.4%
	277
175
1Q20	1Q21

Margin EBITDAaj

EBITDAaj

• Sales volume was 1.3% higher than the volume of the previous year, with focus on the domestic market, which grew 2.0% compared to 1Q20.
• The high availability of cattle (priced 4.8% lower than 1Q20) and the slaughter heavier animals contributed to the gain in the operation's gross margin.
• EBITDAaj was US$ 277 million, an increase of 58.4% compared to 1Q20. It important that in the 1Q20 result there were no

additional expenses related to Covid.

4

North America Operation 2/2

	USA - MARKET DATA
Kills	Cattle Prices	Domestic Price	Spread
(USDA F.I. Steer/Heifer Kill)	(USDA Comprehensive Cutout $/cwt)
(USDA KS Steer $/cwt)	(Cutout Ratio)

	-1.0%
6,464	6,428	6,402
1Q20	4Q20	1Q21

	-4,8%
119	108	113
1Q20	4Q20	1Q21

	+4.2%
216	216	225
1Q20	4Q20	1Q21

	9.3%
1.82	2.00	1.99
1Q20	4Q20	1Q21

• The main driver of the performance was the strong demand for beef combined with wide availability of animals.
• The average selling price in 1Q21 was 4.2% higher than in 1Q20, the result of the gradual normalization of the North American economy after the coronavirus pandemic, the strong vaccination process of the North American population and government incentives, which supported strong demand for beef.
• The Cutout Ratio for 1Q21 was 1.99, the highest historical value for a first quarter (+ 9.3% vs 1Q20).

5