Minerva S A : Notice to the Market - Acquisition of Units in Australia

Notice to the Market

Minerva S.A. ('Minerva Foods' or 'Company'),the South American leader in beef exports, further to the Notice to the Market released on February 11, 2021, hereby informs its shareholders and the market in general that, on this date, the 2 first investment initiatives in the Australian market were executed, aiming the acquisition of the meatpacking units specializing in sheep: Sharke Lake and Great Eastern Abattoir, both located in the west coast of Australia. The investments will be made, and the plants will be operated, by means of a Joint Venture ('JV') in the final phase of constitution between Minerva Foods and SALIC, in which Minerva Foods will hold 65%, while SALIC the remaining 35%.

The JV total investment will be approximately US$35 million, including: (i) acquisition of assets; (ii) investment to improve plants structure; and (iii) working capital. The plants are expected to be ready within 60 days, following the approval by the local regulatory agencies. When operating in full capacity, the plants are expected to reach a slaughter capacity of 1 million heads per year.

Australia is currently the world's leading exporter of sheep meat processed products, being globally recognized for its tradition and high-quality food products, accessing not only several high-growth markets, such as Asia and the Middle East, but also premium markets like the United States, Europe, Japan and South Korea, among others.

In line with its strategic guideline and focus on food security, SALIC currently engages in sheep breading and fattening in Australia, allowing us to improve operational efficiency of the new assets. Additionally, Minerva Foods, through its trading operation based in the region, with expertise in the sale of sheep and greater focus on the consumer markets of Asia and the Middle East, will substantially contribute to the commercial structure of the new operations.

The JV will also support the local development for rural Australia, by creating more than 150 jobs positions.

This initiative is in line with Minerva Foods' strategic direction and uniquely complements our operations in South America, maximizing commercial opportunities and operational synergies, reducing risks and contributing to our strategy to consolidate ourselves in the animal protein export market, always respecting our commitment to financial discipline.

Minerva Foods will keep its shareholders and the market in general informed of this matter and of any other relevant topics.

To access the full Notice to the Market, click here.