Minerva Day V

Minerva Day VBarretos - SP

Agenda

§ Opening

§ Scenarios and alliances

§ Domestic Market and Distribution

§ Export Market

§ Export Market – Russia

§ Export Market – Middle East and North Africa

§ Industry

§ Processes

§ International Expansion

§ MDF

§ Brand

§ Financials

Executive summary

§ Cash position: R$818.5 million at the end of2Q12

§ Focus on financial deleveraging§ Most efficient cash conversion cycle in the

industry§ Proactive monitoring and management of risk

factors

§ Brazil’s second largest beef exporter, with 22.3% market share in LTM 2Q12

§ 55 years of industry experience, with a close relationship with cattle producers

§ High degree of diversification in origination, production and distribution

§ Sophisticated risk management

§ Efficient working capital management (industry benchmark)

§ Differentiated strategy tailored to different businesses

§ BMF&BOVESPA Novo Mercado

§ Level 1 ADR (OTC market)

§ Share Buyback Program

§ Ratings: S&P: B+ / Fitch: B+ / Moody’s: B2

Tradition, Experience and Operational Excellence

Capital Markets Financial discipline

Organizational Chart

Source: Minerva

Fernando Galletti de QueirozCEO

Luis RicardoVP - Brazil Operations

Miguel GularteVP – International

Operations

Frederico de QueirozVP – Related Businesses

Edison TicleVP - Finance

Fabio TallesChief Industrial

Officer

Celia SampaioExecutive Officer ME

Rustam GarevRussia

Mohammad CherabMiddle East

Eduardo RotaController

Roberto AlvesChief Adm. Officer

Wagner AugustoCattle Purchase

Officer

Eduardo PuzzielloIR Officer

Fabiano TitoHead of Research

Leonardo AlencarAnalyst

Iain Anderson MarsCEO MDF

Minerva Day VScenarios and AlliancesFabiano Tito Rosa and Leonardo Alencar

Source: IBGE/Minerva

Reversal of cycleSlaughter

25%30%35%40%45%50%55%60%65%70%75% Ox Cows + Calf

Annual slaughter (million heads) Cow slaughter – IBGE (% total slaughter)

Ox and cow/calf - % Cow and calf slaughter

5060708090

100110120130140150

jan/

06ab

r/06

jul/0

6ou

t/06

jan/

07ab

r/07

jul/0

7ou

t/07

jan/

08ab

r/08

jul/0

8ou

t/08

jan/

09ab

r/09

jul/0

9ou

t/09

jan/

10ab

r/10

jul/1

0ou

t/10

jan/

11ab

r/11

jul/1

1ou

t/11

jan/

12

Index 100 = Jan/06

Vacas Novilhas

14,9 14,9 16,8 17,1 18,4

19,9 21,6

25,9 28,0

30,4 30,7 28,7 28,1 29,3 28,8 30,2

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

29%25% 26% 26%

23% 24%

31%34%

37% 37%34% 33%

31% 30%34%

38%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1T12

Cow Calf

Source: Minerva

Cattle cycleBreeding marginBreeding margin vs. cow slaughter

Breeding margin vs. Selic rate

-1%0%0%0%1%1%1%2%2%2%3%3%

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

jan-

03

abr-

03

jul-0

3

out-0

3

jan-

04

abr-

04

jul-0

4

out-0

4

jan-

05

abr-

05

jul-0

5

out-0

5

jan-

06

abr-

06

jul-0

6

out-0

6

jan-

07

abr-

07

jul-0

7

out-0

7

jan-

08

abr-

08

jul-0

8

out-0

8

jan-

09

abr-

09

jul-0

9

out-0

9

jan-

10

abr-

10

jul-1

0

out-1

0

jan-

11

abr-

11

jul-1

1

out-1

1

jan-

12

abr-

12

jul-1

2

Cow Slaughter Breeding Margin Moving average LTM (Cow Slaughter) Moving average LTM (Breeding Margin)

-1%

0%

1%

1%

2%

2%

3%

jan-

03m

ar-0

3m

ai-0

3ju

l-03

set-0

3no

v-03

jan-

04m

ar-0

4m

ai-0

4ju

l-04

set-0

4no

v-04

jan-

05m

ar-0

5m

ai-0

5ju

l-05

set-0

5no

v-05

jan-

06m

ar-0

6m

ai-0

6ju

l-06

set-0

6no

v-06

jan-

07m

ar-0

7m

ai-0

7ju

l-07

set-0

7no

v-07

jan-

08m

ar-0

8m

ai-0

8ju

l-08

set-0

8no

v-08

jan-

09m

ar-0

9m

ai-0

9ju

l-09

set-0

9no

v-09

jan-

10m

ar-1

0m

ai-1

0ju

l-10

set-1

0no

v-10

jan-

11m

ar-1

1m

ai-1

1ju

l-11

set-1

1no

v-11

jan-

12m

ar-1

2m

ai-1

2ju

l-12

Breeding Margin Selic Average annual margin

Source: Cepea/WBR/Minerva

Competitiveness / spreads cattle

Brazil vs. Competitors in Export Market

Spread Brazil vs. Australia Spread Brazil vs. U.S.

-40%-30%-20%-10%0%10%20%30%40%50%

0

50

100

150

200

250

jan-08

mar-08

mai-08

jul-08

set-08

nov-08

jan-09

mar-09

mai-09

jul-09

set-09

nov-09

jan-10

mar-10

mai-10

jul-10

set-10

nov-10

jan-11

mar-11

mai-11

jul-11

set-11

nov-11

jan-12

mar-12

mai-12

jul-12

Brazil Competitors BRA/COMP Competitors: 35%ARG; 35%URU; 15%U.S. and 15%AUS

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-60%-40%-20%

0%20%40%60%80%

100%120%140%

Source: Minerva

Brazil Feedlot

Brazil ‘s Advantages

29,1 30,3 37,0 36,8 40,8 44,9 43,9 40,4 38,7 39,3 38,8 39,6

6,5%6,7%6,5%8,1%

6,3%6,4%7,9%

9,7%8,6%

6,8%8,7%

10,1%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Animals in feedlot

Slaughtered animals (million) Feedlot

§ Brazil’s competitive advantage is the creation in pastures. § Feedlot guarantees supply during off-season. § Quality raw material and supply well distributed throughout the year.§Flexible management of pasture, increase in production (@/ha/year), increase in output rate and shortening of the production cycle.§ Flexibility to develop niche products.

Feedlot rationale

Diet; 25%

Unfinished cattle; 70%

Other; 5% § Brazil feedlot period: 90 days (fattening period).§ Diet flexibility: citrus pulp; grains; sugarcane byproducts; cotton byproducts and pasture.§ 95% of the Brazilian feedlot supply in the second half.

Source: Minerva

Minerva Feedlot

Minerva’s competitive advantage

§ Well-structured market research department with daily meetings (BEEF DESK).

§ Barretos –SP§ Araguaína – TO§ Rolim de Moura – RO§ Asunción – Paraguay

Grains hedge (futures, forward and storage)Unfinished cattle hedge (forward )Possibility of arbitrage

Source: Minerva

2012 Feedlot

0% 2%3%

9%

14%

20% 22%18%

11%

0%

5%

10%

15%

20%

25%

050.000

100.000150.000200.000250.000300.000350.000400.000450.000500.000

abr mai jun jul ago set out nov dez

Distribution of supply

2011 2012 Chg.SP 442,470 419,059 -5%MS 120,661 137,120 14%GO 393,338 397,730 1%RO 100,100 165,300 65%TO 35,432 46,234 30%MG 185,823 266,020 43%Total 1,277,824 1,431,463 12%

MT 813,947 740,422 -9%Total 2,091,771 2,171,885, 4%

1st 2nd Chg.SP 351,440 361,056 3%MS 170,100 170,500 0%GO 654,190 460,874 -30%RO 115,050 129,750 13%TO 41,250 45,702 11%MG 217,030 224,420 3%

Total 1,549,060 1,392,302 -10%

MT 929,947 740,422 -20%Total 2,479,007 2,132,724 -14%

Growth of Brazilian feedlot 1st and 2nd feedlot

Source: Minerva

CompetitivenessSpread in beef

Cattle (forequarters, hindquarters and ribs)vs. Poultry (R$/Kg)

Cattle (forequarters, hindquarters and ribs)vs. Pork (R$/Kg)

Poultry vs. Soybean (R$/Kg) Pork vs. Soybean (R$/Kg)

1,4

1,6

1,8

2,0

2,2

2,4

2,6

1,50

2,50

3,50

4,50

5,50

6,50

7,50ag

o/07

dez/

07ab

r/08

ago/

08de

z/08

abr/0

9ag

o/09

dez/

09ab

r/10

ago/

10de

z/10

abr/1

1ag

o/11

dez/

11ab

r/12

ago/

12

B. casado Frango Resfriado Boi x Frango

0,8

1,0

1,2

1,4

1,6

1,8

2,0

1,50

2,50

3,50

4,50

5,50

6,50

7,50

ago/

07de

z/07

abr/0

8ag

o/08

dez/

08ab

r/09

ago/

09de

z/09

abr/1

0ag

o/10

dez/

10ab

r/11

ago/

11de

z/11

abr/1

2ag

o/12

B. casado Suíno Carcaça Boi x Frango

1,0

1,5

2,0

2,5

3,0

3,5

0,00

0,50

1,00

1,50

2,00

2,50

ago/

07de

z/07

abr/0

8ag

o/08

dez/

08ab

r/09

ago/

09de

z/09

abr/1

0ag

o/10

dez/

10ab

r/11

ago/

11de

z/11

abr/1

2ag

o/12

Frango Granja Soja Paraná Frango x Soja

1,01,52,02,53,03,54,04,55,0

0,000,501,001,502,002,503,003,504,00

ago/

07de

z/07

abr/0

8ag

o/08

dez/

08ab

r/09

ago/

09de

z/09

abr/1

0ag

o/10

dez/

10ab

r/11

ago/

11de

z/11

abr/1

2ag

o/12

Suíno Vivo Soja Paraná Suíno x Soja

Source: Minerva/CONAB

Harvest estimates

Corn and soybean production – millions of tonnes

Corn production – millions of tonnes

59,0 59,5 60,359,2

60,8 61,7

65,1 65,9

67,869,5

72,873,3 73,071,3 71,8

69,2 68,7

65,666,7

66,4 66,4 66,4

55,0

60,0

65,0

70,0

75,0

out/11 nov/11 dez/11 jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12 ago/12

Milho Soja

37,5 38,2 39,0 37,9 35,0 35,9 36,1 35,7 34,9 34,9 34,2

21,5 21,3 21,3 21,3 25,8 25,8 29,0 30,2 32,9 34,6 38,6

59,0 59,5 60,3 59,2 60,8 61,7 65,1 65,9 67,8 69,5 72,8

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

out/11 nov/11 dez/11 jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12 ago/12

1ª safra 2ª safra

Corn Soybean

1st

harvest2nd

harvest

Source: NOA

U.S. weather conditions

Source: NOA/CEPEA/Mbagro/agroconsult

U.S. weather conditionsPastures and plantations

Corn - % bad or terrible weather condition

Pastures – % bad or terrible weather condition Soybean - % bad or terrible weather condition

5 710

16

28 29

50 5045

4851 52 53

46 46 45

3 5 58 9

14

22

30

38

4548 50 51

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

1988 2012

17

25

33 31

37

30

2024

32 3235

28 28 29 28

610 12

15

2227

3035 37 39 38

22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

1988 2012

0

10

20

30

40

50

60

70

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

2010 2011 2012 2005-10

Source: CBOT/CEPEA/Minerva

U.S. weather conditionsImpact on Corn and Soybean prices

R$37.94

R$33.19

70

80

90

100

110

120

130

140

150

jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12 ago/12

Corn- Jan/12 = index 100

CBOT Cepea

R$74.02

R$84.00

90

100

110

120

130

140

150

160

170

jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12 ago/12

Soybean - Jan/12 = index 100

CBOT Cepea

0%

0% 50% 100%

Pasture cattle x Corn/Soybean

13%

0% 50% 100%

Feedlot cattle x Corn/Soybean

70%

0% 50% 100%

Pork x Corn/Soybean

70%

0% 50% 100%

Poultry x Corn/Soybean

Minerva Day VDomestic Market and DistributionLuis Ricardo Alves Luz

Diversification supported by efficient distribution logistics

§ One-stop-shop concept, involving the resale of

third-party products, such as poultry, pork, fish,

French fries and frozen vegetables, among

others.

§ Focus on small- and medium-sized retailers

§ Timely service (less than 24 hours)

§ Broad coverage: 1,260 cities and 25,000 clients

§ Sale of third-party products increased 71% in

2011 over 2010

Araguaína – TO

Asunción – Paraguay

Araraquara - SP

Belo Horizonte - MG

Brasília - DF

Fortaleza - CE

Itajaí - SC

Palmeiras de Goiás - GO

São Paulo - SP

Viana - ES

8,337,86 8,01

9,11

7,80 7,587,10

6,617,12 7,48

6,86 6,58

1T11 2T11 3T11 4T11 1T12 2T12

Minerva Players' Weighted Average

Fresh beef average price (R$/Kg)

Geographic Presence

575679

878989

1.260

2007 2008 2009 2010 2011

Cities served

Commercial segmentation (1H12 revenue)

26,5%

19,9%

54,0%

Hypermarket

Manufacturing industry

Small- and medium-sized retailers

Minerva Day VExport MarketCélia Sampaio

Source: Minerva

Export Market - Brazil

§ Fresh beef average export prices in 1H12 were comparatively higher than Brazilian average prices.§ Growth in billed volume of fresh beef (SoS) significantly higher than Brazil’s total export volume;§ Market research conducted by our sales offices in Russia, Algeria, Lebanon, Chile, Iran and Saudi Arabia to help in taking business decisions and risk diversification;§ Direct relationship with clients instead of through trading companies, thus increasing profitability;

CIS; 29,3%

Africa; 21,9%Americas;

19,1%

Middle East; 18,0%

Europe; 7,1%

Asia; 4,6%

Highlights Share by market (USD) 1st half 2012

Fresh beef average price (USD/KG) 1H11/2H12 Fresh beef exports (USD)

5,36 5,32

5,075,13 5,11

4,96

4,935,04 5,02 5,07

4,94,77

jan/12

fev/12

mar/12

abr/12

mai/12

jun/12

Minerva

Brazil

2.025.003 1.997.744

361.960 416.460

17,9%

20,8%

1H11

1H12

Brazil

Minerva

Share Minerva

Minerva (SoS): +15.1%Brazil (SoS): -1.3%

0,0

2,0

4,0

J F M A M J J A S O N D

Israel – ‘000tonnes

Source: Minerva


§ The Company’s exports have been increasing, gainingmarket share in ME, on both MoM and YoY bases,among the main markets.

§ Gain in share driven by excellent sales performance inRussia, Chile and a few Middle East countries andNorth Africa, which were the key growth drivers.

Highlights Share Expansion Minerva Brazil

0,010,020,030,040,050,060,070,080,090,0


Total - mil tSHARE

2011 2012Minerva - 2011 Minerva - 2012

0,0

5,0

10,0


Chile - '000 tonnes

0,0

10,0

20,0


Egypt ‘000tonnes

0,0

5,0


Saudi Arabia –'000 tonnes

0,0

2,0

4,0


Libya – ‘000tonnes

0,0

20,0

40,0


Russia – ‘000tonnes

0,0

10,0

20,0


Venezuela – ‘000tonnes

Source: Minerva


§ Focus on sale of frozen beef cuts (higher value added), which have a minimum premium of U$200/tonne.§ The proximity of our international offices to our clients, combined with our efficient logistics and production schedule, allows our frozen fresh beef exports to be more competitive and constant .

Frozen fresh beef exports (USD thousand)

13.109 11.215 16.004 17.368 17.421 16.295

40.741

49.632

72.214 72.889 67.806

62.794

32%

23% 22% 24%26% 26%

0%

5%

10%

15%

20%

25%

30%

35%

jan/12 fev/12 mar/12 abr/12 mai/12 jun/12

Minerva Brazil Market share (%)

Minerva Day VExport Market – RussiaRustam Gareev

RussiaBeef consumption

Source: Minerva

§ Brazil’s share of Russian beef imports is45%. Latin America’s share is 80%.Paraguay and Uruguay increased theirshare.

§ Russia has a population of 140 million, of which 30% are Muslims.

§ Per capita beef consumption is 64kg (42kg in 2002).

§ Russia has had a quota system for beef and poultry imports since 2003 and in effectuntil 2018. Quotas for 2012 are 330 tonnes of poultry, 400 tonnes of pork and 530tonnes of beef.

Brazil; 46%

Paraguay; 17%

Uruguay; 13%

USA; 9%

Australia; 6%

Others; 9%

Russian imports 2012

RussiaBeef

Source: Minerva

§ Minerva increased its share of Brazilian beef exports to Russia from 19 to 22% in thepast 3 years to rank 2nd.

§ Minerva had 8 clients in Russia in 2008 and 40 in 2012. Our clients are top 20Russian importers that are gaining quota with Russian market consolidation.

32%

21%19%

8%

6%

14%

2010

JBS S/A MARFRIG ALIMENTOS S/A

MINERVA S.A. FRIGORIFICO MATABOI SA

BRF - BRASIL FOODS S.A. OTHERS

30%

24%

22%

7%

4%

13%

2011

JBS S/A MARFRIG ALIMENTOS S/A

MINERVA S.A. MATABOI

IRMAOS GONCALVES OTHERS

39%

22%

16%

6%

6%

11%

2012 (JAN-JULY)

JBS S/AMINERVA S.A.MARFRIG ALIMENTOS S/AMATABOIIRMAOS GONCALVES

RussiaChilled Beef

Source: Minerva

§ Russia is a heavy poultry and pork consumer. Government has encouragedmassive investments in domestic pork and poultry local production. In 2011, itmade essential investments and offered incentives for beef cattle raising, which willtake at least 8-10 years to produce results.

§ Grain prices increased by over 40% this year and should lead to increases inpoultry and pork prices shortly, which, we expect, should drive beef prices andconsumption.

Conclusion

§ Minerva started exporting chilled beef toRussia in late 2011. Our market share isnow 70% and growing. Our clients inchilled projects are investing in logisticsand distribution to deal with all mainSuperstores under federal contracts.

Minerva; 74,0%

JBS; 20,9%

Marfrig; 5,2%

Market Share Chilled Beef

Minerva Day VExport Market – Middle East and North AfricaMohammad Chehab

Middle East and North Africa (MENA)Population and lack of arable land

Source: Minerva

§ IRAN : 79 MILLION § TURKEY : 80 MILLION§ SAUDI ARABIA : 27 MILLION§ KUWAIT : 2,7 MILLION§ QATAR : 1,9 MILLION§ BAHRAIN: 1,25 MILLION § UNITED ARAB EMIRATES : 5,3 MILLION§ SULTANATE OF OMAN : 3 MILLION§ YEMEN : 25 MILLION§ JORDAN : 6,5 MILLION§ SYRIA : 23 MILLION§ LEBANON : 4 MILLION§ IRAQ : 32 MILLION § EGYPT : 84 MILLION § LIBYA : 6,7 MILLION§ TUNISIA: 11 MILLION§ KUWAIT : 2,7 MILLION§ ALGERIA: 36 MILLION§ MOROCCO: 33 MILLION

Population: 460 millionGDP: USD 3.5 trillion

§ Desertification process increasing pressure on land use.

§ Iran reduced production over the past 3 years from 1 million tons p.a. to 700,000 tonnes p.a.

§ 98 % of the population are Muslims.

Middle East and North Africa (MENA)Minerva’s footprint

Source: Minerva

Lack of arable land

§ Direct sales with final importers, avoiding any middlemen or brokers: better margins and clientperception.

§ Fresh Chilled Beef (Minerva ranks 1st) and Frozen Beef (Minerva ranks 2nd).

§ In the past years, heavy investments were made in freezing tunnels

Iran

Saudi Arabia

Algeria

Lebanon

Minerva Day VIndustryFabio Talles

Quality Workshop

Revision of Plans (BPF/HACCP/etc.)

Implementation of FSSC 22000 = ISO 22000 + PAS 220 at Palmeiras de Goiás launched

Barretos Certification Laboratory awaiting ISO 17025 certification

2012 Quality Plan

Unit committed to Quality

Industrial Managers = Quality Godfathers

Produce safe and quality food

Active leaders and supervisors

Sign and check the monitoring function on a daily basis

Participation and functioning of monthly audits, with scoring

• Participation of Managers:

• Industrial;• Administrative;• HR;• Controllership;• Q.C. Sup.

Minerva Day VProcessesEduardo Rota and Roberto Alves

Restructuring in Admn./Support Areas

CSC Project

Administrative projects and actions

üChoice: Unification of the strategic management tool (planning) andthe managerial result generation tool;

üSAP: Conclusion of SAP implementation in the Company and itssubsidiaries in June 2011;

üBudget: Stricter budgetary control (Operating expenses and Capex)in the SAP system; and

üCommittees (Desks) Business Unit (BUs): Though each BU hasExecutive Officer or Manager to lead it, strategic planning andmonitoring committees were created for all BUs;

Strategic controllership

Minerva Day VInternational ExpansionMiguel Gularte

One region looking at the worldOne region looking at the world

Seeking quality beefSeeking quality beef

A model that capitalizes on local competitive advantagesA model that capitalizes on local competitive advantages

Uruguay and Paraguay: niches, excellence and benchmark.Uruguay and Paraguay: niches, excellence and benchmark.

International expansion process

International expansion process





It is impossible to have one view of a single country

Systemic view

Volume of

supply

Price

Country’s costs

Currency value

Huge potential

BrazilBigger scaleInternational viewProfessionalismGrowth potential.

Uruguay:Niche producerHigh quality cattle, Broad and flexible presence in international trade.

Paraguay:Competitive supply and prices due to sanitary restrictions

Argentina:Absent historic player, perfect manual of wrong practices.

Unavoidable trend towards ARBITRAGEbetween South America and the world.

Depends only on smoothening the sharp distortions.

This arbitrage is the result not only of supply conditions but is also sought and caused by demand.

A world with more elderly people than youth, families with fewer members, seeking quality food

Scarce production resources for the available land, care for the environment and animal welfare

Convergence of consumption standards

Healthy living in harmony with the environment

3 billion new consumers entering the middle class and looking for more meat

Food (basic human right)Food (basic human right)

Choice (consumer right)Choice (consumer right)

Sustainability (environmental right/duty)Sustainability (environmental right/duty)

The challenge lies in meeting this demand while respecting the three basic consumer rights





Who looks for quality beef?

U.S.13.7%

Japan7.6%

Russia10.4%

NAFTA20.3%

Mercosur 23.3%

Oceania23.1%

Who sells to the world?





• Efficient research department• Modern plants with homogeneous practices and competitive

costs.• Human resources in permanent development.• Unique domestic and international production language.• Business offices in key regions.• Constant pursuit of commercial, industrial and administrative

excellence, generating internal benchmark.• Total commitment to quality and customer.

Minerva ModelA strategy that capitalizes on domestic and international advantages

§ In 20 years, cattle inventories and slaughter increased, so did genetics and producers’ professionalism.

§ Sanitary achievements and business diversification drove up exports.§ Cattle prices increased, significantly contributing to improved productivity in cattle

raising.

§ Minerva chooses regional opportunities as it is located in two countries with excellent future prospects.§ The expertise of Minerva in Brazil and of Minerva/PUL in Uruguay, applied to a favorable environment in Paraguay marked by low costs, a cattle farming industry in expansion, as well as qualified and abundant manpower generate significant results.

Minerva ModelA strategy that capitalizes on domestic and international advantages

Minerva Mercosur

Paraguay and Uruguay





Strategic vision

Relation with producers

Business flexibility

Processes

InformationMinerva Model:5 steps

ProducersProducers

RegularRegular

SporadicSporadic

Rotation circuit

Rotation circuit

Relation with producers – PUL benchmarking

Business flexibility – PUL Benchmarking

Highlights

§ 11 million heads of cattle, 95% of them from British stock§ Slaughter capacity 1,200 heads/day§ ISO 9000 and ISO 22000 certified§ Modern structure§ Business rationale – niche player§ Benchmark

§ 12 million heads of cattle and growing§ Competitive advantage§ Cheap energy§ Low labor costs§ Qualified manpower§ High productivity§ Excellent upside for Minerva/PUL synergy

Paraguay

Uruguay

§ The sanitary incident was transferred into an opportunity.§ With international prices remaining stable, the 80% of the cost dropped by over 30%.

Highlights

Uruguay

Quality is the foundation of profitability.Transparency and strict compliance with international standards are the path to sustainable development.All of us at MINERVA are engaged in a process whose ultimate objective is having customers satisfied with our products, which ensures us improved profitability.

Final message

Minerva Day VMinerva Dawn Farms

Minerva Dawn FarmsProfile

MDF is a producer of meat-based “ready to eat” food products.

The “ready to eat” concept implies strict controls in the production process to ensure that the products are 100% microbiologically safe.

MDF’s activities are focused on the ingredient and processed protein industry and are targeted exclusively at the food services market and industries in both Brazil and abroad.

MDF has no products for the retail market. Its entire production is directed to customers such as Subway, Pizza Hut, Baked Potato, Salad Creations, Spoletto and many other restaurants, cafeterias, fast food chains, industries and industrial kitchens.

Minerva Dawn FarmsProfile

Minerva Dawn Farms is a company with the know-how and experience to create, develop and produce food products based on cooked, roasted and grilled poultry, pork and beef using diverse processing technologies.

It is a novel concept that uses cutting-edge technology and equipment, which enable significant flexibility in processes and specifications.

Minerva Dawn FarmsCurrent scenario

§ Adaptation of the company’s production and sales mix to the newscenario – development of new products for the domestic market

§ Increased share of domestic sales§ Continuation of exports of products with adequate margin – MDF

purchases / processes and sells – cooking is not an extension ofslaughter as it is in other integrated businesses.

§ Strong growth in the key account of the segment that acquires 100%of ready-to-eat cooked proteins– Subway

§ MDF became Subway’s main supplier in Brazil§ Expanded operations in the school food market – state and municipal

schools– SP (in operation), RS, SC, PR, DF, MG, RJ (in thedevelopment stage)

§ Redefinition of the business strategy, with the focus on largeaccounts, rationalization of operations in the generic food servicesegment – market not mature yet to accept this concept

Minerva Dawn FarmsSubway

§ Subway is the fastest growingQSR (quick service restaurants)chain in Brazil – all the proteinacquired is under the RTE (ready-to-eat) concept

§ MDF became the largest proteinsupplier to the Subway chain inBrazil – approximately 80 %

§ MDF became Subway’s preferredpartner for new products – launchof the barbecue steak and themain supplier for Subway’spromotions

YearProjected number of

storesDec/2011 788Dec/2012 1,088Dec/2013 1,286Dec/2014 1,484Dec/2015 1,682

Minerva Dawn FarmsShort-term Prospects§ Continued strong growth in major accounts in the domestic QSR

(quick service restaurants) / fast food market – Subway

§ Need for additional investments to meet Subway’s demands in 2012and open room for growth in other customers / markets

§ Gradual growth in other QSR customers – Spoleto, Baked Potato,China in Box and Pizza Hut

§ Expand presence in the school food segment in state and municipalschools of São Paulo and other states

§ Continuation of operations in export markets through thedevelopment of new products, clients and destinations.

Minerva Dawn FarmsMedium- and long-term prospects

§ If Subway maintains its current growth pace in Brazil and if MDFcontinues to be its preferred supplier of cooked beef, thecurrent plant will be operating at 100% capacity in 2013 / 2014

§ Pepperoni / salami – demand from the major chains (Subway,Pizza Hut) for dedicated products is not being met and there isroom for building a plant dedicated to this segment.

Minerva Day VBrandFabio Teixeira

WHY?• 20 years

• Evolving market

• Growing diffusion of brand

• Clear positioning

• A business group (Pul, Friasa)

• Distribution chain for consolidated MI and

ME

WHAT?CONSUMER

• Strengthen what he

believes in

• Needs

• Perception

• Scarcity of time

• Emotion

MARKET

• Strengthen what we are

• Authenticity

• Identity

• Relationship

• Reason

HOW?1. The foundation of Minerva’s position in the market is its risk

management capacity and operational flexibility.

2. Its market strength and perpetuity is due to the meticulous

management of assets, its superior capacity to anticipate

developments and maintain a clear and safe strategy.

3. Its distribution structure and service level provided to the food chain gives it a clear competitive advantage in MI and ME.

The most efficient global food company in the market, with top quality products and high service standards.

BRANDS

BRANDS

Minerva Day VFinancialsEdison Ticle

190,9143,1

214,1

21,5%

15,2%19,8%

2Q10 2Q11 2Q12

Net revenue

Adjusted EBITDA and Adjusted EBITDA Margin

920 1.0151.141

2Q10 2Q11 2Q12

69,6 79,7112,7

7,8% 8,5%10,5%

2Q10 2Q11 2Q12

62,5 69,3100,0

7,0% 7,4%

9,3%

2Q10 2Q11 2Q12

Gross profit and Gross margin

EBIT and EBIT Margin

Financial highlights

Source: Minerva

YoY: +25.2%QoQ: +12.4%

YoY: +12.1%QoQ: +49.6%

YoY: +61.9%QoQ: +41.4%

YoY: +60.0%QoQ: +44.3%

§ Risk management strategy designed to mitigate the impacts of exposure to diverse risk factors

§ Reduction in the volatility in cash generation: margin lock-up mentality

§ High liquidity: Cash of R$818.5 million at the end of 1Q12

§ Policy of minimum cash equivalent to 2 months‘ raw material purchases

§ Efficient working capital management: shortening of the cash conversion cycle

467 424

577

746819

2008 2009 2010 2011 2Q12

48

3833 36 34

23 22 22 2227 24

2009 1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q12

Risk managementConservative financial and risk policies

Cash position (R$ million) Inventory turnover (in days)

Source: Minerva

504614

818

2Q10 2Q11 2Q12

4,25

3,99 3,99

2Q10 2Q11 2Q12

819

13577 50 18

12022

14591

29 698

749

5 5

910

Cash 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Minerva

Capital structure

Minerva’s debt profile

Cash position (R$ million) Deleverage (Net debt)/EBITDA

Cash generationOperating and free

§ Free cash flow in 2Q12 was R$44.1 million.

§ Moreover, our operating activities generated positive cash flow of R$122.7 million, continuing theexcellent performance that began in 4Q11.

R$ million 2Q12

Net income -130,855

Net income adjustments 232,423

(+/-) Change in NCG 21,125

Operating cash flow 122,693

Operating cash flow (2Q12) Gross profit and Gross margin

R$ million 2Q12

EBITDA -130,855

(+/-) Change in NCG 21,125

Maintenance capex -28,245

Financial expense (cash) -61,435

Free cash flow 44,138

Source: Minerva

Share buyback program: Started on April 3, 2012 and ends onApril 3, 2013, limited to the acquisition of 3,290,179 commonshares, equivalent to 10% of the free float

Market Maker: 05/13/11 - BTG Pactual

Level 1 ADR: Launched on 07/04/2011

Domestic 64%

Intl. 36%

80

100

120

140

160

180

200

jan-12 fev-12 mar-12 abr-12 mai-12 jun-12 jul-12 ago-12

BEEF3 IBOVESPA

Ativa Coinvalores Safra Banco do Brasil Deutsche BofAML Barclays SLW Santander Bradesco Fator BTG HSBC Itaú JPM

Capital market

Performance - BEEF3 vs. IBOVESPA Free float breakdown (39%)

Analyst coverage (15 institutions) Recent measures

Source: Minerva, Bloomberg and Economomática

2017 Notes: US$35 million; maturity 2017

2019 Notes: US$250 million; maturity 2019

Debentures: R$200 million; maturity 2013/2014/2015

Convertible debentures: R$200 million; maturity 2015

2022 Notes: US$350 million + retap US$100 million; maturity 2022

65

75

85

95

105

115

65

75

85

95

105

115

Attachment2019 and 2022 Notes2019 Notes 2022 Notes

Issues

Source: Minerva and Bloomberg

Minerva Day VQ&A

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