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Corporate Presentation2Q21
SECTOR OVERVIEW
OPERATING AND FINANCIAL HIGHLIGHTS
APPENDIX
THE COMPANY
Global Beef Market
3
(‘OOO tons carcass weight equivalent)
Asia(2) 2021
Production 7,848
Import 5,070
Export 34South America(1) 2021
Production 14,667
Import 447
Export 3,948
USA 2021
Production 12,719
Import 1,370
Export 1,552
European Union 2021
Production 7,750
Import 320
Export 360
Russia 2021
Production 1,378
Import 340
Export 35
India 2021
Production 4,000
Import 0
Export 1,375
Oceania(3) 2021
Production 2,663
Import 32
Export 1,935Fonte: USDAProduction: (1) South America: Argentina (3,035), Brazil (9,550), Chile (227), Colombia (765), Paraguay (540), Uruguay (560), (2) Asia: China (7,050), Japan (475), Hong Kong (5), Taiwan (8), South Korea (310)(3) Oceania: Australia ((1.950) and New Zealand (713)
India31%
Brazil25%
USA9%
China10%
EU9%
Argentina5%
Others11%
Global Herd
Herd Size of Relevant Players Around the World
4Source: USDA
97
94
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
UNITED STATES (2001-2021: -3.8%)
25
17
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
MEXICO (2001-2021: -32.9%)
95
86
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
EU (2001-2021: -9.3%)
28
18
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
RUSSIA (2001-2021: -34.8%)
124
96
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
CHINA (2001-2021: -22.6%)
28
23
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
AUSTRALIA (2001-2021: -17.0%)
14
11
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
CANADA (2001-2021: -18.1%)
Herd Size(1) of Relevant Players in South America
5
Uruguay
Chile
Paraguay
Colombia
Argentina
Sources: USDA, FAO, ODEPA, and SENACSANote: (1) Cattle Herd: Numbers in mm heads
Brazil
150
253
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
BRAZIL (2001-2021: 68.0% )
10
12
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
URUGUAY (2001-2021: 14.6%)
51
54
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
ARGENTINA (2001-2021: 5.3%)
20
28
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
COLOMBIA (2001-2020: 39.8%)
10
14
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
PARAGUAY (2001-2020: 41.6%)
Sector OverviewGlobal Supply
6
UNITED STATESAUSTRALIA
AUSTRALIA – HERD PROJECTION UNITED STATES BEEF MARKET
▪ Meat & Livestock Australia (MLA) Projections
▪ Approximately 2 million heads was reduced in the herd, a drop of 8% in the past six years
▪ 2021E: the herd may reach ~25 million heads
▪ Exports: 16% drop in volume (2020)
▪ Jan-Aug down 19% yoy
▪ Animal protein’s production impacted by the pandemic: operational
restrictions and labor’s availability reduce
▪ Reduction in Australia's exports (the country accounts for 23% of US
beef imports)
▪ Economic recovery and strong beef consumption forecast for 2021-22:
opportunities for exporters
(‘000 cwe(1) ) 2017 2018 2019 2020 20212021 vs
2017
Production 11.943 12.256 12.384 12.381 12.719 +6,5%
Import 1.358 1.360 1.387 1.513 1.370 +0,9%
Export 1.297 1.434 1.373 1.331 1.552 +19,7%
Net -61 74 -14 -182 182
Sources: Meat & Livestock Australia and USDA | (1) cwe = tons of carcass weight equivalent
29.100
27.413
24.62125.191
2014 2015 2016 2017 2018 2019 2020 2021
-8.2%
Sector OverviewWorld Demand
7
664 703 680
5251,740
3,2281,845
3,249
4,884
2009 2020 2030North America Europe Central and South America
Asia Pacific Sub-Saharian Africa Middle East and North Africa
(Million of People)
BEEF IMPORTSBEEF CONSUMPTION GROWTH
BEEF EXPORTS VOLUME MIDDLE CLASS – GLOBAL EVOLUTION
(2020 X 2000)
(2021 X 2020)
(000 TONS)
Sources: USDA and OECD
7 22 38 27 92378 370
613761
902
1.369
2.177
2.7253.000
117 153 154 160 250481
655344 442 524 521
356545 475
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
China Hong Kong
-17% -12% -5%-3% 3%
6%
16%
Argentina Australia Brazil Paraguay EU Uruguay USA
72%
8%
5%
2%
1%
-5%
-13%
-26%
Asia
Middle East
Africa
Americas (ex North America)
North America
European Union
Oceania
Cis
Russia36%
Venezuela10%
Iran8%
Hong Kong6%
Egypt5%
Algeria4%
Israel3%
Others28%
China54%
Hong Kong11%
Egypt5%
Chile5%
Russia3%
Saudi Arabia
2%
Others 20%
Brazil: Exports
8
● Exports more concentrated (2007: 11 major exporters were ~70 % exports | 2019: 3 exporters did ~ 85% of exports)
● Increased diversification of Brazilian exports
● Strong movement of opening new markets since 2015: China, Saudi Arabia, Indonesia, USA, Thailand,
● Brazil currently accesses around 70-80% of the world beef demand
● Potential opening of new markets (Japan, Canada, Mexico, South Korea and others)
BEEF EXPORTS VOLUME
2007: US$4.0 billion
Source: SECEX
2020: US$ 7.5 billion
● Brazil represents 24% of theglobal beef export market
Sector OverviewGlobal Market Exposure
9Source: USDA
WORLD BEEF EXPORTERS(MILLION TONS CARCASS WEIGHT EQUIVALENT)
Brazil is among the countries with the most relevant growth in beef exports between 2012 and 2020, with potential to increase exports even more due to its recent accreditation to China and Indonesia
1,5 1,41,5
1,1
0,20,5
0,3 0,30,2 0,3
0,7
2,32,4
1,8 1,61,4
0,80,6 0,5 0,4 0,4 0,4
1,1
4,0
2012 2020
CAGR 7.0%
CAGR 2.3%
CAGR 1.0%
CAGR -3.6%
CAGR 2.9%
CAGR 5.8%
CAGR 1.9%
CAGR 8.7%
CAGR 4.7%
CAGR 4.3%
CAGR 22.8%
CAGR 6.9%
OthersSouth
America
Sector OverviewBrazil
10
7.710.5
12.1 13.2 12.4 11.2 10.5 10.6 11.613.1 14.5 14.3
11.9 11.4 12.5 13.3 13.210.9
44.8 45.0 47.1 46.5 44.0 44.3 46.5 47.051.0 52.3 54.2 55.9 54.7 54.2 55.1 53.4 54.3
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
50,0
55,0
0
5
10
15
20
25
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
Female Slaughter Calf Production
15%
35%
55%
75%
Mar
-10
Jun
-10
Sep
-10
Dec
-10
Mar
-11
Jun
-11
Sep
-11
Dec
-11
Mar
-12
Jun
-12
Sep
-12
Dec
-12
Mar
-13
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Dec
-17
Mar
-18
Jun
-18
Sep
-18
Dec
-18
Mar
-19
Jun
-19
Sep
-19
Dec
-19
Mar
-20
Jun
-20
Sep
-20
Dec
-20
Oxes Cows + Heifers
SLAUGHTER COMPOSITION
BRAZILIAN CATTLE HERDAVERAGE CATTLE PRICE (R$/@ - SP STATE)
CALF PRODUCTION AND FEMALE SLAUGHTER
(MILLIONS HEADS)
(MILLIONS HEADS)
Sources: Agroconsult, Informa FNP, IBGE, Cepea and USDA
110135160185210235260285310
01
/01
/20
14
08
/03
/20
14
13
/05
/20
14
18
/07
/20
14
22
/09
/20
14
27
/11
/20
14
01
/02
/20
15
08
/04
/20
15
13
/06
/20
15
18
/08
/20
15
23
/10
/20
15
28
/12
/20
15
03
/03
/20
16
08
/05
/20
16
13
/07
/20
16
17
/09
/20
16
22
/11
/20
16
27
/01
/20
17
03
/04
/20
17
08
/06
/20
17
13
/08
/20
17
18
/10
/20
17
23
/12
/20
17
27
/02
/20
18
04
/05
/20
18
09
/07
/20
18
13
/09
/20
18
18
/11
/20
18
23
/01
/20
19
30
/03
/20
19
04
/06
/20
19
09
/08
/20
19
14
/10
/20
19
30
/12
/20
19
06
/04
/20
20
13
/07
/20
20
06
/10
/20
20
11
/12
/20
20
15
/02
/20
21
191198
203208
213219
226232
238244
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
11
CATTLE CYCLE
BREEDING MARGIN X LOCAL INTEREST RATE
BREEDING MARGIN X FEMALE SLAUGHTER
Sector Overview
Sources: Cepea and IBGE
Phase 1
Calves prices
decrease
Drop in
cattle
prices
Phase 2
Calves prices
increase
Female
retention
Rise in
cattle
prices
Phase 1: Female Slaughter
Phase 2: Female RetentionReduction in females results in decreased calf production and
reduced cattle supply in the near future
Decrease in breeding profitability results in an increase in the supply of females for slaughter, creating a market imbalance
0,00%
0,50%
1,00%
1,50%
2,00%
2,50%
3,00%
3,50%
4,00%
jun-0
9ou
t-09
fev-1
0ju
n-1
0ou
t-10
fev-1
1ju
n-1
1ou
t-11
fev-1
2ju
n-1
2ou
t-12
fev-1
3ju
n-1
3ou
t-13
fev-1
4ju
n-1
4ou
t-14
fev-1
5ju
n-1
5ou
t-15
fev-1
6ju
n-1
6ou
t-16
fev-1
7
jul-17
no
v-1
7m
ar-
18
jul-18
no
v-1
8m
ar-
19
jul-19
no
v-1
9m
ar-
20
jul-20
no
v-2
0
0,8%1,3%1,8%2,3%2,8%3,3%3,8%4,3%4,8%
25%
30%
35%
40%
45%
50%
Jun
-09
Oct
-09
Feb
-10
Jun
-10
Oct
-10
Feb
-11
Jun
-11
Oct
-11
Feb
-12
Jun
-12
Oct
-12
Feb
-13
Jun
-13
Oct
-13
Feb
-14
Jun
-14
Oct
-14
Feb
-15
Jun
-15
Oct
-15
Feb
-16
Jun
-16
Oct
-16
Feb
-17
Jul-
17
No
v-1
7M
ar-1
8Ju
l-1
8N
ov-
18
Mar
-19
Jul-
19
No
v-1
9M
ar-2
0Ju
l-2
0N
ov-
20
Sector OverviewSouth America
12
FRESH BEEF EXPORTS & SHARE SOUTH AMERICAN CATTLE HERD
Sources: USDA
Gradual improvement of the cattle herd efficiency in the region
HIGHLIGHTS OPENING TO NEW MARKETS
Share increase in totalexports
Better numbers of cattle herd growth
Higher volume and export revenue growth
Regional capacity to supply increase in global demand
Opening of Indonesia market
Opening of the United States to Argentina’s beef
Opening of the Japanese market to Uruguayan producers
(MILLIONS HEADS)(‘000 CWT(1) AND ‘%’ )
Reopening of the United States to Brazilian beef
Expectation of greater access to others consumer markets
2.894 3.354 3.901 4.184 3.948
2017 2018 2019 2020 2021
38%36%40%
30%33%
292 299 305 310319
2017 2018 2019 2020 2021
South America: ~40% of global fresh beef exports
13
AVG. CATTLE PRICE & DISCOUNT TO USA – USD/KG
▪ More than 90% of the cattle is grass fed
▪ Competitive cost structure; lower dependence on grains; hormones prohibited
▪ Mild weather conditions and rich in natural resources (land, water, feedstock)
▪ Abundant labor force
▪ Reliable animal-health surveillance constantly being improved
▪ Sustainable production matrix
KEY ASPECTS
AVERAGE PRICE (JAN/20 – JAN/21)
Sector OverviewNatural Advantage on Raising Cattle in South America
Sources: USDA and Company information
3,80 4,26 3,39 2,98 2,58 2,54 2,40
USA Australia Uruguay Brazil Paraguay Argentina Colombia
100% 112%89%
78%
68% 67%63%
Canada28%
Australia23%
Mexico19%
New Zealand
13%
Uruguay7%
Others10%
2019
Beef Market in USA
14
▪ Export Beef prices
▪ 15-20% premium compared to average emerging markets clients
▪ South America:
▪ Opportunities to access new markets with similar sanitary conditions
▪ Japan | South Korea
▪ Australia weakness:
▪ Australia correspond to 23% of USA beef imports
▪ Trade War: to increase USA beef production costs (grains prices)
▪ South America competitiveness on beef production
HIGHLIGHTS BEEF CONSUMPTION
USA BEEF IMPORTS BREAKDOWN% OF VOLUME
BEEF IMPORTS(000’ TONS)
(000’ CWT)
Australia37%
New Zealand20%
Canada19%
Mexico12%
Uruguay4%
Others9%
2015
Sources: USDA and Trademap
1.042 933 1.007 1.020
1.337 1.528
1.366 1.358 1.360 1.3871.531
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
12.02611.641 11.736 11.608
11.241 11.27511.676
12.052 12.181 12.408 12.558
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
Beef Market in ChinaCultural and Market Conditions Should Increase Imports From One of The World’s Largest Beef Market
15
▪ Beef prices ▪ +400% increase since 2000▪ Income growth + urbanization + western habits →major beef demand
▪ South America:▪ Uniquely positioned to benefit from growing demand▪ Capabilities to improve cattle herd and beef supply▪ Cost competitiveness on beef production▪ Trade relationship with China: no trade barriers▪ Strategic opportunity: foothold as long term beef supplier to China
▪ ASF: trigger to speed up beef demand and consumption
Considering China, Hong Kong and Vietnam
90
110
130
150
170
190
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
Poultry Beef Pork
Base 100
HIGHLIGHTS PER CAPITA CONSUMPTION GROWTH
CHINA OFFERS OPPORTUNITY FOR BEEF PRODUCERS CHINESE BEEF IMPORTS
Australia54%
Uruguay23%
New Zealand
13%
Argentina 5%
USA2%
Others4%
2013
% OF VOLUMEGreat acceptance of beef within the Chinese taste and culture
Low per capita consumption of beef
High and rising domestic meat prices
Recent import licenses to new Brazilian plants
Shortage of pork meat in China due to Africa Swine Fever
Positive Perspective to
Increase Exposure to China
Change in Brazilian taxation on beef exports could improve
margins for meatpackers
Brazil40%
Argentina23%
Australia12%
Uruguay11%
New Zealand
8%
Others6%
2020
Beef Market in IndonesiaFew Brazilian Players have Access to Indonesia - A Market with the World’s Largest Halal Demand
16
INDONESIA HIGHLIGHTS
1,15
1,35
1,55
1,75
1,95
2,15
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
KG/Hab
Australia 77%
New Zealand
20%
USA3%
2013
Sources: OECD | Trademap
BEEF IMPORTS GROWTH(000’ TONS)
INDONESIAN BEEF IMPORTS% OF VOLUME
PER CAPITA CONSUMPTION GROWTH
• With approximately 260 million inhabitants, Indonesia stands out as one of the
largest Halal meat consuming markets in the world
• In 2019, Indonesia has authorized beef exports at least 25,000 tonnes of beef
products from 10 Brazilian meat-packing plants, with 5 plants operated by Minerva
Foods (capacity of 6,400 heads/day)
• Brazilian beef enters the country, in terms of quality and price, between Indian
buffalo and Australian beef and poses a greater competitive threat
16 11 11 12 20 24 39 46
68 91
65
34 46
75 48
135
87
150 160 144
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
India52%
Australia33%
USA8%
New Zealand
4%
Brazil 3%
Others1%
2020
Beef Market in UKOpportunities BREXIT
17
HIGHLIGHTS
Ireland 77%
Netherlands6%
Namibia4%
Others 14%
2010
Sources: FAO | Trademap
BEEF IMPORTS VOLUME(000’ TONS)
BREAKDOWN OF BEEF IMPORTS% OF VOLUME
BEEF DOMESTIC CONSUMPTION & % OF IMPORTS
▪ Per Capita Consumption 2019: 18kg
▪ Approximately 95% of imports come from European Union
▪ Opportunity for new trade agreements between South American producers
▪ Around 250 mil ton imported per year
▪ Minerva access thought Brazilian Industry Division and Athena Foods
(TON)
93% of imports from EU
264 274 290 251 243
2016 2017 2018 2019 2020
1.108 1.116
1.126
1.101 1.099
24% 25% 26%23%
22%
2016 2017 2018 2019 2020
Domestic Consumption % of Imports
Ireland79%
Poland6%
Netherland6%
Germany2%
Others7%
2020
18
TOTAL & FEMALE SLAUGHTER BEEF PRODUCTION
2,30
2,80
3,30
3,80
4,30
4,80
May
-10
Jan
-11
Sep
-11
May
-12
Jan
-13
Oct
-13
Jun
-14
Feb
-15
Oct
-15
Jul-
16
Mar
-17
No
v-17
Jul-
18
Mar
-19
Dec
-19
CATTLE PRICE
1.600
1.800
2.000
2.200
2.400
2.600
2.800
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
F
20
21
F
20
22
F
-15%
BEEF EXPORT BEEF EXPORTS BREAKDOWN
500
700
900
1.100
1.300
1.500
1.700
1.900
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
F
20
21
F
20
22
F
China | USA
Japan| S. Korea
Indonesia
Taiwan
Minerva`s Access
HIGHLIGHTS & OPPORTUNITIES
▪ Cattle herd on the lowest level since 2001;
▪ Long-lasting climate problems;
▪ 2020 bushfires may impact 400k heads;
▪ Increase on female slaughter also curbing futureherd recomposition;
▪ Opportunity for South American players to improvemarket share on traditional Australian clients.
(000’ TONS)
(000’) (000’ TONNES CWT)
Sources:MLA |World Beef Report | f: forecast
42%
44%
46%
48%
50%
52%
54%
56%
5.300
5.800
6.300
6.800
7.300
7.800
8.300
8.800
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
F
20
21
F
20
20
F
Slaughter % of Female
-18%
Australian ChallengesChallenging climate and herd conditions have reduced the competitiveness to serve the Asian market
-20%
BRA/ARG ~2.64
Japan26%
USA20%China
19%
South Korea15%
Indonesia5%
Taiwan2%
Others12%
2020
SECTOR OVERVIEW
OPERATING AND FINANCIAL HIGHLIGHTS
APPENDIX
THE COMPANY
20
2020
Colombia
Paraguay
Uruguay
Brazil
Argentina
Chile(Only
Offices)
2008
Paraguai
Brasil
▪ 7 Slaughtering Plants
1957 1992 2007 2008 2011 2012 2013 2014 2015 2017
Acquisition of first
slaughtering plant and
constitution of Minerva
• Acquisitions and capacity growth investments totaling around R$ 350 mm
• Acquisition of Friasa Meat Packing in Paraguay
IFC buys a stake in the
company
Acquisition of Red Carnica
Meatpacker in Colombia
1,044
2,309
1,713
4,657
2,277
10,060
2008 2012 2015
153 494* 1.020EBITDA(R$mm)
Fontes: Minerva; *números de 2012 proforma com Frigomerc
Acquisition of Pul Meat
Packing Uruguay
Acquisition of Frigomerc in
Paraguay
IPO and Bond issuance
totaling US$ 500mm
Vilela de Queiroz family starts their
business in the agribusiness and logistics segment
Acquisition of Carrasco Meatpacker in Uruguay
Acquisition of JBS Mercosur in Paraguay, Uruguay and Argentina growing capacity in 52%
to 26,380 heads day
2019 2020
JV - beef distribution operation in
China
Acquisition of Vijagual in Colombia and first investment in Clara Foods (US)(Venture Capital)
Minerva’s Consistent Growth Throughout The Years
Gross Revenue(R$mm)
Heads Slaughtered
(000’s)
Slaughtering PlantProcessing Plant
▪ 25 Slaughtering Plants
▪ 3 Processing Plants
3.403
24,271
LTM2Q21
2.201
Consistent Growth
21
Paraguay
Uruguay
Colombia
Uruguay
Paraguay
2008 2012 2015
▪ 7 Slaughter Units ▪ 17 Slaughter Units
▪ 1 Processing Plant
Slaughter Unit
Brazil
Paraguay
Brazil Brazil
Processing Plant
▪ 11 Slaughter Units
▪ 1 Processing Plant
Current Geographical Diversification Across South America
22
Colombia
Paraguay
Uruguay
Brazil
Argentina
Slaughtering Plants
Processing Plants
SLAUGHTERING CAPACITY GROWTH
10,480 11,480 11,480
15,88017,330 17,330
26,380 26,380 25,480 26,180
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
+52%
CAPACITY BY COUNTRY# OF SLAUGHTERING
PLANTSHEADS/DAY % OF TOTAL
Brazil 10 10,980 41.9%
Paraguay 5 5,400 20.6%
Argentina 5 5,050 19.3%
Uruguay 3 3,200 12.2%
Colombia 2 1,550 5.9%
Total 25 26,180 100,0%
Gross Revenues Breakdown
23
BRAZILIAN INDUSTRY DIVISION ATHENA FOODS TRADING DIVISION
44% of Consolidated Gross Revenue
51% of Consolidated Gross Revenue
UruguayChile
Paraguay
Brazil
Colombia
Argentina
Colombia
Uruguay
Paraguay
Chile
Brazil
Argentina
Brazil
Colombia
Paraguay
Uruguay
Argentina
Chile
Australia
New Zealand
Gross Revenues
% of Gross Revenue
DM1
% of Gross Revenue
EM2
2Q21 2,921.8 35.6% 64.4%
Gross Revenues% of Gross Revenue
DM1
% of Gross Revenue
EM2
2Q21 3,398.9 21.5% 78.5%
Gross Revenues
% of Gross Revenue
DM1
% of Gross Revenue
EM2
2Q21 347.5 68.0% 32.0%
5% of Consolidated Gross Revenue
(1) DM refers to the Domestic Market; (2) EM refers to the Export Market
Domestic Market
24
HIGHLIGHTS
CHANNELS / TYPE GROWTH OF SALES CHANNELS
▪ Growth in the food service segment
▪ Increase of the number of food service clients
▪ Gain of market share and profitability
▪ Growth in premium brands
▪ Growth in niche markets
DISTRIBUTION CENTERS
2017 2018
58.5 thousand 65.0
thousand
+ 6,5 ‘000+11%
Brazil:Aparecida de Goiania – GOAraraquara – SP Brasilia - DFBelo Horizonte – MGCariacica - ES Taboão da Serra - SPUberlandia – MG Fortaleza – CE Recife – PE
ColombiaBogota
ParaguayAsuncion
ChileSantiago
Concepcion
ArgentinaPilar
Food Service
51%
Small Retailer32%
Mid Retailer
12%
Others5%
2019
12% Bar & Snackbar
8% Steakhouse
74% Restaurant/ Buffet
6% Others
Food Service
Asia37%
Americas26%
CIS12%
Middle East10%
EU8%
NAFTA4%
Africa3%
Sales: Exports MarketFocus on Emerging Countries
25
HIGHLIGHTS
BRAZIL DIVISION BREAKDOWN OF EXPORTS
(% REVENUES)
▪ Primary focus: emerging markets (more than 100 countries)
▪ Niche markets: organic beef for the USA and Europe
▪ Special cuts (including kosher and halal) for the Middle East, Russia and Other Markets
▪ 16 international offices (Americas, Europe, Middle East, Africa, Oceania and Asia)
▪ Sales through 3 distinct channels: Industry | Food Service | Retail
ATHENA FOODS BREAKDOWN OF EXPORTS
(% REVENUES)
Russia
NewZealand
Singapore
USAArgelia
Lebanon
Italy
UK
Chile
Egypt
Australia
China
Hong Kong
Taiwan
2 International Trading 16 International OfficesNew Expected International Offices Headquarters
LTM2Q20 LTM2Q20LTM2Q21 LTM2Q21
Asia59%
NAFTA9%
EU9%
Middle East7%
Americas6%
CIS5%
Africa5%
Asia50%
CIS12%
Africa12%
Middle East9%
EU9%
Americas7%
NAFTA1%
Asia42%
Americas20%
CIS11%
EU9%
NAFTA8%
Middle East7%
Africa3%
26
Colombia
Paraguay
Uruguay
Brazil
Argentina
#1
#1
#2
#2
#1
Solid Share of Exports Within Geographic Footprint
Sources: Minerva, Secex, Penta-transaction, OCIT, INDEC/ICA e LegiscomexNote: (1) Market share as of 2Q21
South America corresponds to 40% of global fresh beef exports
✓ Largest Exporter in South America
✓ ~20% of Market Share
27
MINERVA’S FOOTPRINT TRACK RECORD
2003
2008
2011
2015
2017
With current footprint,
Minerva manages to access almost
every markets
Minerva’s Increasing Access to International Market
Sources: Minerva and USDANote: (1) Corresponds to million tonnes combining fresh, frozen and chilled beef as of 2020
Main Beef Importers Total Minerva’s Current Penetration
Country % of Global Beef Import(1) BR PY UY AR CO
China 29.53% ✓ ✓ ✓
USA 16.60% ✓ ✓ ✓
Japan 9.11% ✓
South Korea 5.96% ✓ ✓
Hong Kong 5.91% ✓ ✓ ✓ ✓ ✓
Russia 3.90% ✓ ✓ ✓ ✓ ✓
European Union 3.31% ✓ ✓ ✓ ✓
Chile 3.25% ✓ ✓ ✓ ✓ ✓
Egypt 2.98% ✓ ✓ ✓ ✓
Canada 2.82% ✓ ✓
Filipinas 1.90% ✓ ✓
Taiwan 1.84% ✓
Malasia 1.73% ✓ ✓ ✓
Mexico 1.46% ✓
Saudi Arebia 1.36% ✓ ✓ ✓ ✓ ✓
Others 8,33%
Total 100.0%
4,0%
20,0%
11,0%
11,0%
15,0%
15,0%
Un
til S
ep-1
9C
urr
ent
Brazil Argentina Uruguay
Exposure to Asian Market
28
Access to China
3 slaughter units 4,340 heads/day
• Barretos (SP): 840 • Palmeiras de Goiás (GO): 2,000 • Rolim de Moura (RO): 1,500
3 slaughter units 3,200 heads/day
• Pul: 1,400• Carrasco: 900• Canelones: 900
1 slaughter unit 2,400 heads/day
• Rosario: 2,400
Argentina
Uruguay
Brazil
▪ In 2019 – Brazil increased its access to Chinese market through 22 additional plants
▪ Minerva’s total exposure grew by 54% in capacity (+3,5 thousand heads/day)
% OF COMPANY’S TOTAL CAPACITY (1)
Note: (1) Considering only operating plants
Access to Indonesia
✓ World’s largest halal market → strong volumes and premium prices
5 slaughtering plants
6,400 heads/day• José Bonifácio (SP): 1,000 • Palmeiras de Goiás (GO): 2,000 • Rolim de Moura (RO): 1,500 • Araguaína (TO): 800• Mirassol d’Oeste (MT): 1,100
• In 2019, Indonesia has authorized beef exports from 10 Brazilian meat-packing plants, with 5 plants operated by Minerva Foods (capacity of 6,400 heads/day)
• Indonesia imported approximately 150,000 tons of beef in 2018, with Australia accounting for around 40% of that volume
• Brazilian beef enters the country, in terms of quality and price, between Indian buffalo and Australian beef and poses a greater competitive threat
Authorized meat-packing units
Joint Ventures OpportunitiesPotential to Unlock Other Opportunities with Infrastructure and Acquired Know-How
29
Exports distribution chain before JV
JV
ADVANTAGES EFFICIENT DISTRIBUTION CHANNEL
Beef Shipment Distributor
Client Final Consumer
▪ Strategic Partnership: to access new distribution
channels and clients (industry, food service, retail,
etc)
▪ To grow capillarity and expand footprint in strategic
markets, moving forward on beef value chain
▪ Improve our market intelligence and customer
behavior knowledge
▪ Branding opportunities in the future
1
2
3
4Beef Shipment
Client / Final Consumer
Exports distribution chain after JV
1
2
3
1JV as a potential avenue to
unlock value without leveraging
Athena Foods
3030
Uruguay
Chile
Paraguay
Colombia
Argentina
Installed capacity: 5,050 Slaughter Heads/Day
Installed capacity: 3,200 Slaughter Heads/Day
Installed capacity: 1,550 Slaughter Heads/Day
Distribution Center
Installed capacity: 5,400 Slaughter Heads/Day
Leading South American producer and exporter of fresh beef and cattle by-products
Top brands in the processed foods segment
Strategically positioned in 5 countries with 17 processing facilities
Argentina Uruguay
3 Slaughter Units
5 Slaughter Units1 Distribution Center
Paraguay Colombia
2 Slaughter Unit1 Distribution Center
Chile
2 Distribution Centers
5 Slaughter Units2 Processing Plants1 Distribution Centers
Pricing
Credit
Beef Desk
Choice meeting
Innovation Area Minerva Foods
31
E-COMMERCE / MARKETPLACE PLATFORMADVANCED ANALYTICS
▪ Responsible for developing and management of advanced
analytics tools, to support our decision making process
(applying A.I. to our proprietary Data Lake):
▪ To develop worldwide initiatives in order to leverage
opportunities of the digital sales channel
▪ Initial targets
Brazil Argentina Paraguay
VENTURE CAPITAL
▪ Vehicle to invest in startups with innovation skills related to the Minerva value chain, such as: alternative proteins, ingredients,
logistics, livestock, agritech and food retail – in order to seek long term synergies and leverage on our capabilities;
▪ Up to USD 30 mm to be invested in up to 10 companies (individual tickets from US$ 1million to US$ 5 million
▪ Clara Foods, Shopper, Amyris and TrAIve
INNOVATION AND INVESTMENT HUB
SECTOR OVERVIEW
OPERATING AND FINANCIAL HIGHLIGHTS
APPENDIX
THE COMPANY
Risk Management Differentiated Strategy
33
Booking scale
Mix of SalesDM/EM
Basis Arbitrage
Carry Arbitrage
Long/Short Play
BusinessIntelligence
Beef DeskChoice
MeetingPricing
Meeting
FuturesMarket
DomesticMarket
ExportMarket
FX RiskCattle
PurchaseLogistics& Taxes
Beef Desk is crucial for the Company to maintain margins and decrease risk due to market exposure
Asia 48%
Americas 18%
Middle East 7%
CIS9%
EU 7%
NAFTA 6%
Africa 4%
34
DIVISIONS BREAKDOWN CONSOLIDATED EXPORTS – 2Q21
Brazilian Division
44%Athena Foods51%
Trading Division
5%
CAPACITY UTILIZATION
Operating and Financial Results
2Q21
(% OF GROSS REVENUE) (% OF REVENUE)
Brazilian Division
47%Athena Foods46%
Trading Division
7%
LTM2Q21
China: 36% Others: 12%
Asia46%
Americas18%
CIS9%
Middle East9%
EU8%
NAFTA6%
Africa4%
63,2%
68,4% 69,1%
63,0%
70,9%
76,3% 77,4% 77,2% 77,1% 76,6%
69,7%72,7% 73,3%
71,4%74,4%
2Q20 3Q20 4Q20 1Q21 2Q21
Brazilian Industry Division Athena Foods Consolidated
China: 36%Others:10%
CONSOLIDATED EXPORTS – LTM2Q21(% OF REVENUE)
590 554 617
485 545
2Q20 3Q20 4Q20 1Q21 2Q21
4.399 5.137
5.703 5.803 6.288
2Q20 3Q20 4Q20 1Q21 2Q21
NET REVENUE – QUARTERLY (R$ MILLION) (R$ MILION|%)
Operating and Financial Results
EBITDA & EBITDA MARGIN – QUARTERLY
+42.9%
EBITDA & EBITDA MARGIN - YEARLY(R$ MILION|%)
13.4% 10.8% 10.8%
35
8.4%
NET REVENUE – YEARLY
11.3% 11.5% 11.0%
2.029 2.129 2.143 2.246 2.201
LTM2Q20 LTM3Q20 LTM4Q20 LTM1Q21 LTM2Q21
10.7% 9.6%
8.7%
17.937 18.563 19.406 21.043 22.931
LTM2Q20 LTM3Q20 LTM4Q20 LTM1Q21 LTM2Q21
+27.8%
2,6 2,2 2,4 2,4 2,4 2,2 1,9
2,4 2,32,6
2Q20 3Q20 4Q20 1Q21 2Q21
Net Debt / EBITDA LTM Net Debt / EBITDA LTM (USD)
5.414 4.709 5.170 5.374 5.309
2.0302.129 2.143
2.246 2.201
2Q20 3Q20 4Q20 1Q21 2Q21
Net Debt EBITDA LTM
R$ Million Jun/21
Gross Debt 11,651
Cash and Cash Equivalents 6,342
Net Debt 5,309
EBITDA LTM 2,201
Net Debt / EBITDA LTM 2.4x
Outstanding Warrants 313
Leverage in BRL
(after Warrants exercise)2.3x
(NET DEBT/EBITDA LTM)
Financial LeverageNET DEBT AND EBITDA LTM(R$ MILLION)
LEVERAGE (X)
36
37
FREE CASH FLOW 2Q21
FREE CASH FLOW LTM2Q21
Free Cash Flow
(R$ MILLION)
(R$ MILLION)
14th consecutivequarter withpositive FCF
539 (69)
406 (235)6 647 (222)
425
2,164 (352)547 (1,035)
37 1,361
6.342
1.073
498 46
639 487
722 1.203
192 139
3.278
127
3.246
Cas
h
3Q
21
4Q
21
1Q
22
2Q
22
20
22
20
23
20
24
20
25
20
26
20
28
20
30
20
31
Capital Structure
DEBT AMORTIZATION SCHEDULE – 2Q21
HIGHLIGHTS
▪ Leverage measured by Net Debt / EBITDA LTM ratio : 2.4x▪ Cash Position: R$ 6.3 bn▪ At the end of June, approximately 68% of total debt was
indexed to the dollar variation▪ According to the Company’s hedging policy, at least
50% of long-term FX exposure is hedged▪ Debt Duration: improved to ~6.4 years
▪ Approximately 57% of gross debt maturing between 2028 and 2031
38
57%
▪ Liability management efforts:▪ 2031 Notes (4.375% coupon)
▪ Redemption of 2026 Notes (6.5% coupon) ▪ Savings of ~ 220bps per year on interest payment and gross leverage reduction
▪ CRA issue - R$1.6 billion (April/21)▪ 1st series R$ 1.2bn (2028) | 2nd series R$ 400mn (2031)▪ Savings of ~250bps per year on interest payment
▪ Open market repurchases of Minerva´s 2028 Notes: USD 41.2 mn (May/21)
▪ Retap 2031 Notes (July/21) – to roll over more expensive debt
▪ US$ 400 million (4.375% coupon)
~20% ~70%
SECTOR OVERVIEW
OPERATING AND FINANCIAL HIGHLIGHTS
APPENDIX
THE COMPANY
10
15
20
25
30
35
40
45
50
55
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
468 471 480 479 472 458 442 428
310275
2011 2012 2013 2014 2015 2016 2017 2018 2019F2020F
0%2%4%6%8%
10%12%14%16%18%20%
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
Beef Poultry Pork
African Swine FeverDisruption on Global Protein Market
40
SUPPLY / DEMAND - PROTEIN
Others23%
USA 9%
EU19%
China49%
Imports 3%
DomesticProduction
97%
Meat ConsumptionWorld
Pork ConsumptionWorld (~120mT)
ChinesePork Supply (~60mT)
Beef23%
Pork42%
Poultry35%
SWINE HERD EVOLUTION - CHINAMILLION HEADS – ENDING INVENTORY
~36%
SWINE MEAT PRODUCTION - CHINA
60.0
50.0
42.0
61.0
2018 2019 2020 2021 2022 2023 2024
-30%
40
PORK RETAIL PRICES - CHINACNY/KG
0
10
20
30
40
50
60
70
80
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
+20% LTM3Q19
+10% aa
BEEF RETAIL PRICES - CHINACNY/KG IMPORTS/CONSUMPTION, ‘%’
GROWTH OF IMPORTS - CHINA
MILLION TON
Sources: USDA40
20.05
40
OpportunitiesSizable opportunities in short/medium term considering Brazilian Macroeconomic outlook
41
OPPORTUNITIES
Source: GACC
MAIN TAKEAWAYS
Chinese Beef Trade (‘000 tons) 2019 2020 Jan-Aug 2020 Jan-Aug 2021% Chinese Imports
20202020 x 2019
Chinese Beef Imports 1,659 2,118 1,391 1,517 28%
Argentina 376 483 315 328 23% 28%
Brazil 400 848 518 581 40% 112%
Uruguay 286 230 154 203 11% -20%
Australia 307 253 200 96 12% -18%
New Zealand 214 170 125 140 8% -21%
New plants in South America for export to China
Opportunity to reduce customs barriers (quotas and tariffs)
Organic demand growth and prolonged ASF effect (2025-2026), supporting beef exports
SHAREHOLDERS’ STRUCTURE
Current
42
BOARD OF DIRECTORS
WARRANTS
Warrants
Issued 150,268,698
Exercised 92,118,696
Outstanding 58,150,002
VDQ Holdings 46,722,759
Others 11,427,243
SALICUK
VDQHolding
Free Float
17.633.8 48.6
Current + Total warrants exercise
SALICUK
VDQHolding
Free Float
23.630.5 45.9
New Composition of the Board of Directors:
▪ 10 members:
▪ 5 members appointed by VDQ
▪ 3 members appointed by SALIC UK LIMITED
▪ 20% independent members
(According to Novo Mercado Regulation)
Shareholder's Structure
R$ 313.4millions
Meatpacking Business Model
43
Buying
Cattle Purchase Team
Cattle Suppliers
Cattle$$
• Over 25k suppliers in Brazil
• 100% third party suppliers
• Supplier base not concentrated
• Experienced cattle purchase team
• All purchases made in the spot market
• Fast and standardized process
• Promotes quality and reduces operational risks • Sales made in the spot market
~5 days
~5 days
Domestic Market
Export Market
% of 2018 Minerva’s revenues
38%
62%
Spot market
Spot market
Transforming Selling
Spot market
CattleAcquisition
Slaughtering
ShipmentCorral
Deboning and packaging
1 day
1 day
Up to 60 days
Environmental Governance
44
AMAZON BIOME EXPANSION DOES NOT RELY ON DEFORESTATION
Environmental Protection Relies on Economical and Social Development
Sources: MAPA, Embrapa, ABIEC and Agroicone
49% of Brazil 4.2 Million km² Forest Code Mandatory Conservation
80%
35%
20%
Amazon
Cerrado
Other
Mandatory Conservation
84% of Preserved Vegetation
24,5
52,5
67,5
1990 2005 2018
kg/ha/yr+176%
TROPICAL GRAZING LANDS:C SEQUESTRATION POTENTIAL
Supply Chain Monitoring – Brazil
45
Minerva’s providers maps Environmental Protection Areas Indigenous Lands
100% check of procurements in Brazil
Land tenure ComplianceLand Register (CAR) and other land tenure document analysis
Labor ComplianceSlave/Child Labor List
Environmental ComplianceEmbargoed Areas List
Sectorial EngagementGlobal Roundtable, Brazil, Paraguay, Colombia
+9 millionhectares monitored
= Portugal territory
Supply Chain Monitoring
46
Araguaína unit
Minerva’s providers coordinates
Environmental Protection Areas
Indigenous Lands
GIS maps of 100%of suppliers in Amazon
Environmental Protection Areas
Indigenous Lands + 8,000 ranches mapped
Blacklist+ 2,000 bloqued providers
GIS coordinates of 100%(1)
of big suppliers in Chaco
Environmental Protection Areas
Indigenous Lands
Pioneering supplier mapping in Paraguay
Note: (1) For 2018 suppliers
AMAZON
GRAN CHACO - PARAGUAY
Governance, Risk Management & ComplianceLong Term Responsible Investment
47
GOVERNANCE, RISK MANAGEMENT AND COMPLIANCE
▪ Anti-bribery and anti-corruption policies
▪ Conflict of interest policy
▪ Ethics committee
▪ HR committee
▪ Quality committee
▪ Best practices committee
Food Safety & Animal Welfare
WORLD CLASS CERTIFICATIONS
HEALTH & SAFETY SOCIAL PURPOSE
+ $30 million invested
in H&S since 2014 IFC
Performance Standards
+ 10,000 hours with no
accidents in 2018
We go beyond generating jobs, income and social development for 36 cities in South America and +17,000 employees!
$ 322$ 510
Minimal wage
Operational Wage average
24x7 Grievance Mechanism Community engagement
AMMONIA
ELETRICITY
WORK AT HEIGHTS
COLD
PRESSURE VESSELS
MACHINE PROTECTION
LIFTING
FIRE
