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1Focus to Win

INSTITUTIONAL

PRESENTATION 4Q13 Results

FOCUS TO WIN

2Focus to Win

STRATEGIC

OVERVIEW

3Focus to Win

Who we are | Marfrig at a Glance

Focus

Marfrig is one of the largest and most diversified

global food companies

In n

um

be

rs... Presence in

16 countries

4 continents

110

Products in

more than

countries.

Strong brand

recognition

More than

employees

78With

CustomerProfitable

Growth

Positive

Free Cash

Flow

Innovation

45,000 Commercial

production and

distribution units

4Focus to Win

2013 breakdownby business

2013 breakdownby currency

2013 breakdownby product

Who we are | Marfrig at a glance

• International food company with strong focus on the food service channel

• Presence in both emerging markets (especially Asia) and more mature economies (USA and Europe)

• Highly diversified product portfolio (poultry, fish, lamb and beef)

• Food service revenue of R$1.5bn in Brazil alone, one of the country’s largest players and one of the world’s largest suppliers to McD

• 78 processing plants, sales offices and DCs around the world

• Despite the importance of our beef cuts business, processed meats account for approximately 50% of our portfolio

Revenue of R$18.8bn and operations well diversified across products and regions

1

2

3

1

2

3

46%

29%

25%

MARFRIG BEEFKEYSTONEMOY PARK

43%

22%

22%

13%

USDEURO/POUNDREALOTHER

50%

40%

10%

FURTHER PROCESSEDFRESHOTHER

16.5

18.8

2012 2013E

+ 14%

Net Revenue(R$ bn)

2012 2013

5Focus to Win

Who we are | Focus and Positioning

One of the world’s

largest providers of

processed food to

major restaurant

chains

FoodService

4.9 5.4

2012 2013

+10%

One of the largest

poultry-based

processed products

suppliers in the UK

and Europe

Retail and Food Service

World’s 3rd largest

beef producer and

one of South

America’s largest

lamb suppliers

Diversified

7.6

2012 2013

+14%

DiversifiedAnimal

Protein Player

Strong focuson Food Service

Positive growth outlook across all

business units

High Probability

Marfrig Group

16.5 18.8

2012 2013

+14%

4.0 4.7

2012 2013

+18%

Revenues

(R$ billion)

Growth

Outlook

Potential

Margin

Expansion

Main Sales

Channels

Business

Description

5

8.7

6Focus to Win

Non-financial Highlights

Corporate Governance: conclusion of

the transition process to separate the

roles of Chief Executive Officer and

Chairman of the Board of Directors.

Animal Welfare: Marfrig was recently

elected one the world’s best companies

in animal welfare (source: Business

Benchmark on Farm Animal Welfare,

2013), which reflects our firm

commitment to sustainability in our

business chain.

7Focus to Win

MOY PARK

STRATEGY AND

OBJECTIVES

8Focus to Win

LegendSlaughter

Processed food

Other

Moy Park | Business Unit Overview

25% of Marfrig Group sales

One of Europe’s leading poultry companies

Top 20 UK food business and leader in

convenience products

Northern Ireland’s largest company

15 production sites in Northern Ireland,

England, France and Holland

70 years of history

Employer of 12,000 people

HighlightsFootprint

Diversified protein based food company with

presence in poultry, turkey, beef and pork

9Focus to Win

Moy Park | Business Unit Overview

Production Structure

Products

• Poultry, savory, bakery,

pork, agriculture, turkey

and sliced corned beef

40%51%

9%

FreshProcessed Poultry/ BeefOthers (Agri + Meat Free)

Brand Positioning

Premium

Mainstream

Daily

Use

Sales Channels

• Vertical poultry

integration

11 further processing

plants

4 slaughter plants

3 feed plants

7 hatcheries

750 farms

• 235 million chicken heads

per year

• 1.5 million turkey heads

per year

• 0.25 million tons of

processed food per year

2013(%)

• Strong presence in retail

and food service:

2012

61%28%

11%

Retail

Fast food / Food Service

Other

2013(%)

10Focus to Win

Continue expansion of

multi protein retail sales

in markets across UK,

Ireland and

Continental Europe

2

Boost presence in

the food service

distribution channel

in the UK, Ireland

and Continental

Europe

3

Moy Park | Key Strategic Goals

1

Grow core UK &

Ireland retail fresh

poultry and

convenience food

sales ahead of the

market

4Become Marfrig

global distribution

platform in Europe

11Focus to Win

Moy Park | Financial Projections

%

CAGR %

2012-18Revenue

Growth(2)

EBITDA

Margin

8.5 10.0

7.5 8.5

2018 Target Range

17.9(2013/2012)

6.5(3)

2013(1)

Note:

(1) Growth and margin for full year 2013

(2) Revenues stated in R$, FX rate considered of R$/£=3.80 in 2014 and flat onwards, no projected inflation

(3) Does not consider non-recurring items

12Focus to Win

KEYSTONE

STRATEGY AND

OBJECTIVES

13Focus to Win

Highlights


One of the world’s leading suppliers

for the food service industry, QSR players

Presence in the US, Asia and Oceania

Leading protein supplier to McDonalds

(60% of Keystone sales in 2013 )

Employer of over 11,500 people

Keystone | Business Unit Overview

Footprint

Diversified food company, focused on processed meat

products and food service with footprint in US and APMEA

Legend

Slaughter

Processed food

Other

14Focus to Win

Keystone | Business Unit Overview

Geographic Presence

24%

76%

APMEA

US

Geographic Coverage

Production Infrastructure

Sales ChannelsProductsProduction Structure

ProductsSales

Channels

• 13 further processing

plants

• 3 poultry vertical

integration complexes

• 1 primary processing

plant + 1 grain operation

• 1 research &

development facility

• 19 pullet farms + 61

breeder farms + 296

broiler farms

• Focused on food

service channel and

developing retail

channels

• Leading supplier to

McDonald´s

USA: #1 beef, #2

poultry and #2 fish

APMEA: #2 protein

supplier in China, sole

protein supplier to

Malaysia, Thailand

and Korea; #2 in

Australia

• Poultry, beef and fish

processed products

76%

22%2%

Poultry

Beef

Fish

2013(%)

2013(%)

15Focus to Win

Poultry is the main

focus for growth1Key Accounts

growth2

Geographic

expansion to secure

additional processing

capabilities

3

Grow and diversify

beef business4

Keystone | Key Strategic Goals

16Focus to Win

Keystone|Financial Projections

CAGR %

2012-18Revenue

Growth(2)

EBITDA

Margin

7.5 9.0

8.0 9.0

2018 Target range

10.0(2013/2012)

6.4(3)

2013(1)

%

Note:


(2) Revenues stated in R$, FX rate considered of R$/U$=2.40 in 2014 and flat onwards, no projected inflation

(3) Does not consider non-recurring items

17Focus to Win

MARFRIG BEEF

STRATEGY AND

OBJECTIVES

18Focus to Win

Marfrig Beef | Business Unit Overview

Highlights


(c.35% in Brazil)

Focus on beef and lamb

Products sold in the local and

international markets

31 production sites in Brazil, Argentina,

Uruguay and Chile

2nd largest beef operation in Brazil

Leader in Uruguay slaughter

#1 Chilean meat importer

+21,000 employees

Legend:

Slaughter

Processed food

Other

19Focus to Win

Marfrig Beef| Business Unit Overview

Beef and lamb, fresh and

processed

Sale of potatoes,

vegetables, fish and other

imported foods

Uruguay: 55% export, 45%

domestic

Argentina: 22% export, 78%

domestic

Chile: biggest supplier of

local catering companies

39%

38%

23%

20 plants in Brazil

(16 slaughtering,

4 processing)

3 plants in Argentina

(3 slaughtering)

5 plants in Uruguay

(slaughtering and

processing)

2 plants in Chile

(slaughtering)

Production Structure

ProductsBrand

PositioningSales

Channels

Super

Premium

Premium

Daily

Use

Processed

Beef

Export

Domestic Market

Food Service

In Natura

Processed

Lamb, leather and other

65%17%

18%

2013(% Brazil)

2013(%)

20Focus to Win

Improve cash

conversion – drive

efficiencies and asset

optimization

1Top line profitable

growth – focus on

strategic distribution

channels

2

Leverage our beef

sourcing potential in

South America to

increase sales to US,

Europe and Asia

3

Marfrig Beef|Key Strategic Goals

Grow in the

value added

product segment4

21Focus to Win

Marfrig Beef |Financial Projections

%

CAGR %

2012-18

Revenue

Growth(2)

EBITDA

Margin

7.0 9.0

8.0 10.0

Faixa Alvo 2018

X.X%(2013E/2012A)

X.X

2013E

13.5(2013/2012)

9.2(3)

2013(1)

7.0 9.0

8.0 10.0

2018 Target Range

Note:


(2) Revenues stated in R$, FX rate considered of R$/U$=2.40 in 2014 and flat onwards, no projected inflation

(3) Does not consider gains from asset sales (Zenda) and non-recurring items

22Focus to Win

4Q13

FINANCIAL

PERFORMANCE

23Focus to Win

4,3754,455

4,944 4,978

1Q13 2Q13 3Q13 4Q13

Keystone: - 6.2%

Moy Park: + 9.1%

Marfrig Beef: + 0.7%

4Q13 breakdownby business

4Q13 breakdownby currency

4Q13 breakdownby product

Net Revenue(R$ million)

Financial Performance|Consolidated

+ 1%

Growth vs. 3Q13:

45%

28%

27%

MARFRIG BEEF

KEYSTONE

MOY PARK

44%

23%

21%

12%

USDEURO/POUNDREALOTHER

49%

42%

9%

FURTHER PROCESSEDFRESHOTHER

24Focus to Win

571

493

586

660

13.1%11.1% 11.9% 13.3%

1Q13 2Q13 3Q13 4Q13

Financial Performance | Consolidated

Breakdown by Business(%)

Gross Profit & Gross Margin(R$ million and %)

3Q13 4Q13

Gross Profit growth at Marfrig Beef of 12.8% in relation to 3Q13, driven by higher sales and prices in

the food service segment, growth in Brazilian exports of 10% and significant improvement in the

results of the Uruguay operations.

Gross Profit growth at Keystone of 3.4%, which benefitted from lower feed (grain) prices in the

vertically integrated poultry operations and from the lower cost of boneless chicken (breast).

Gross Profit growth at Moy Park of 19.0%, explained by higher turkey sales, a better product mix,

stronger sales and lower production costs.

+ 13%

16%

21%

63%

15%

22%

63%

KEYSTONE

MOY PARK

MARFRIG BEEF

25Focus to Win

SG&A expenses as a ratio of net revenue increased 60 bps from 3Q13.

Marfrig Beef increased 110 bps due to higher expenses with logistics, exports and marketing.

Keystone increased its G&A expenses by 30 bps due to the high concentration of travel andseasonal events (e.g., regional meetings) in the period.

Moy Park reduced its G&A expenses by 30 bps due to the higher dilution of expenses

resulting from its stronger sales in the period.


SG&A & SG&A/Net Revenue(R$ million and %)

3Q13 4Q13

12%

28%

60%13%

29%

58%

KEYSTONE

MOY PARK

MARFRIG BEEF


322 331 342373

7.4% 7.4%

6.9%

7.5%

1Q13 2Q13 3Q13 4Q13

+ 9%

26Focus to Win


Adjusted EBITDA & Margin(R$ million and %)

3Q13 4Q13

Expansion of 90 bps in Adjusted EBITDA Margin from 3Q13:

100 bps increase at Marfrig Beef to10.0%

50 bps increase at Keystone to 6.9%

120 bps increase at Moy Park to 7.6%

+ 13%25%

21%

54%22%

24%

54%

KEYSTONE

MOY PARK

MARFRIG BEEF


369

280

375422

8.4%

6.3%

7.6%8.5%

1Q13 2Q13 3Q13 4Q13

27Focus to Win

(60)

(479)

(194)(83)

1T13 2T13 3T13 4T13

Net Income(R$ million)

-57%

Financial Results(R$ million)

Income/Loss before Taxes

Income Tax & Social

Contribution

Net Income (Loss)

1Q13 (53) (7) (60)

2Q13 (714) 235 (479)

3Q13 (253) 59 (194)

4Q13 (158) 74 (83)


1Q13 2Q13 3Q13 4Q13

28Focus to Win

Liquidity & Debt|Consolidated

Debt(R$ million)

(*) Current Liquidity = Current Assets / Current Liabilities

Indicators 3Q13 4Q13

Gross Debt/ EBITDA LTM 3.84x 3.77x

Net Debt/ EBITDA LTM 2.8x 3.0 x

Net Debt/ EBITDA Aj.

Annualized 4.40x 4.22x

Net Debt/ Total Assets 0.4x 0.4x

Cash and Eq. / Short Term

Debt1.60x 1.61x

Current Liquidity (*) 2.0 2.0

Duration (months) 51 54

Average Cost(p.y) 7.8% 8.0%

Short Term (%) 16,4% 12.6%

Long Term (%) 83.6% 87.4%

BRL (%) 7.0% 4.5%

Other Currencies(%) 93.0% 95.5%

3,6412,169 1,492 1,123

7,127

9,357

8,9287,635 7,817

1,813

12,998

11,097

9,127 8,940

Gross Debt1Q13

Gross Debt2Q13

Gross Debt3Q13

Gross Debt4Q13

Cash andEquivalents

Net Debt4Q13

Long Term

Short Term

29Focus to Win

1,813

503

125 155340

685 582

1,578

2,473

9

1.597

893

Caixa 1T14 2T14 3T14 4T14 2015 2016 2017 2018 2019 2020 2021

Liquidity & Debt|Consolidated

Maturity Schedule – 4Q13(R$ million)

Short Term: R$ 1.1 bn

Maturity Schedule – 3Q13(R$ million)

Cash 1Q14 2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 2020 2021

2,470

1,052

304 45 92 370 524 457

1,503

2,409

8

1.516

847

Caixa 4T13 1T14 2T14 3T14 4T14 2015 2016 2017 2018 2019 2020 2021Cash 4Q13 1Q14 2Q14 3Q14 4Q14 2015 2016 2017 2018 2019 2020 2021

Short Term: R$ 1.5 bn

30Focus to Win

Positive Operating Cash Flow (before Capex and Interest) of R$368 million in 4Q13,

compared to R$236 million in 3Q13.

(202)

(427)

236368

1T13 2T13 3T13 4T13

Cash Flow | Consolidated

Operational Cash Flow before CAPEX & Interest

(R$ million)

1Q13 2Q13 3Q13 4Q13

+ 56%

31Focus to Win

(83)

400

(101)

264

(102) (42)

32 368

Net Income/Loss

Not affectingcash items

Trade accountreceivables

Inventories Trade accountpayables

Other Taxes Op. Cash Flowbefore

Investiments


Cash Flow Bridge – 4Q13 (R$ million)

Improvement in working capital management due to lower inventories, triggering a R$62

million reduction in working capital needs in 4Q13.

Monetization of R$32 million in tax payments in the quarter.

Improvement from prior quarters in the quality of adjusted EBITDA due to better

management of taxes and the cash conversion cycle.

32Focus to Win

1,038

1,132

1,222

1,332

1T13 2T13 3T13 4T13

61 66

78

1015.9% 5.9%

6.4%

7.6%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

50

60

70

80

90

100

110

120

1T13 2T13 3T13 4T13

Sales revenue growth driven by higher turkey sales in the United Kingdom, Ireland and

Continental Europe, explained by festive season sales, the better product mix in both the

domestic and export markets and stronger sales in both the retail and food service

channels.

Improvement of 30% in Adjusted EBITDA and 120 bps in margin in relation to 3Q13.

Reduction in SG&A expenses due to the higher dilution of expenses resulting from the

stronger sales in the period.

+ 9%

+ 30%

Moy Park 4Q13 Highlights


Adjusted EBITDA & Margin (R$ million and %)

1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13

33Focus to Win

82

68

95 96

6.8%5.3%

6.4% 6.9%

1T13 2T13 3T13 4T13

1,2131,286

1,4831,390

1T13 2T13 3T13 4T13

Net revenue down 6% from 3Q13, mainly due to the lower sales price of chicken breast in the

United States.

In Asia, Keystone benefited from promotions for the festive season and school holidays, the

gradual recovery in China and higher exports.

Gross Margin benefitted from lower feed (grain) prices in the vertically integrated poultry

operations and from the lower cost of boneless chicken (breast) in the United States.

Adjusted EBITDA in 4Q13 grew to R$95.5 million, from R$95.4 million in 3Q13, with margin of 6.9%,

50 bps higher than in 3Q13.

- 6%

+ 1%

Keystone 4Q13 Highlights



1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13

34Focus to Win

2,1242,038

2,240 2,256

1T13 2T13 3T13 4T13

Modest net revenue growth, explained by the lower production and sales in Argentina,

which were partially offset by higher exports from Brazil and Uruguay and by the good

performance of Brazil's domestic market, with higher prices and growth in food service

sales.

Improvement in the Uruguay business, demonstrating a reversal in the adverse scenario of

the first half of 2013.

Adjusted EBITDA growth of 12% with margin expansion of 100 bps from 3Q13.

+ 1%

225

145

202226

10.6%

7.1%

9.0%10.0%

1T13 2T13 3T13 4T13

+ 12%

Marfrig Beef 4Q13 Highlights



1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13

35Focus to Win

CONSOLIDATED

GUIDANCE

36Focus to Win

EBITDA

Margin

Note:

(1) Revenues stated in R$, FX rate considered of R$/U$=2.40 and R$/₤=3.80 in 2014 and flat onwards, no projected inflation

(2) Operating cash flow after capex, working capital changes, interest expenses and income tax

Revenues(1) 21.0 – 23.0

2014Target Range

7.5 – 9.5(CAGR% 2012-18)

7.5 – 8.5 8.5 – 9.5

2018Target Range

Free Cash

Flow to

Shareholders (2)

600 –

%

R$ billion

R$ millionCAPEX

Breakeven

to 100600 – 850 R$ million

Consolidated Financial Projections

37Focus to Win

FINAL REMARKS

38Focus to Win

Final Remarks| Marfrig group

We are pleased to end 2013 on a strong quarter, which is the product of a simpler

and more focused Marfrig.

We remain fully committed to creating value for our shareholders. Part of this

value must be performance-based and part must come from our continued

focus on strengthening our capital structure.

Improving performance coupled with possible further debt/interest expense

reduction, should trigger, over time, a significant revaluation on the equity side.

All businesses continue to perform strongly. We will continue to pay undivided

attention to deliver steady performance.

Beef demand internationally should not abate. China might represent a

significant force in terms of beef and lamb demand in the years to come.

Not inconceivable to see the US opening to Brazil´s beef in the coming years,

adding additional possibilities to our existing platform in South America.

39Focus to Win

Final Remarks| Marfrig group

Our Asia operation is well positioned to capture significant growth in the near

future. Strong and experienced local management– a clear distinction from most

multinationals operating in the region.

If we are able to deliver the upper range of the 2014 guidance, both in terms of

revenue and margin, our leverage could drop to mid 3´s coupled with free cash

flow, potentially unleashing robust value to the equity side already in 2014.

We believe we are a value story, with management team aligned in creating

value to our shareholders.

Last, but not least, we are exploring the possibility of taking our subsidiaries

abroad public with the following objectives:

Maintaining a comfortable majority control at both companies;

Injecting additional capital to support more rapid organic growth in both

Europe and Asia; and

Further reducing the group's leverage.

Important to mention we are still in an exploratory phase.

40Focus to Win

Disclaimer

This material is a presentation of general information about MarfrigGlobal Foods S.A. and its consolidated subsidiaries (jointly the“Corporation”) on the date hereof. The information is presented insummary form and does not purport to be complete.

No representation or warranty, either expressed or implied, ismade regarding the accuracy or scope of the information herein.Neither the Corporation nor any of its affiliated companies,consultants or representatives undertake any responsibility for anylosses or damages arising from any of the information presented orcontained in this presentation. The information contained in thispresentation is up to date as of December 31, 2013, and, unlessstated otherwise, is subject to change without prior notice. Neitherthe Corporation nor any of its affiliated companies, consultants orrepresentatives have signed any commitment to update suchinformation after the date hereof. This presentation should not beconstrued as a legal, tax or investment recommendation or anyother type of advice.

Some data contained herein were obtained from various externalsources and the Corporation has not verified said data throughany independent source. Therefore, the Corporation makes nowarranties as to the accuracy or completeness of such data,which involve risks and uncertainties and are subject to changebased on various factors.

This presentation includes forward-looking statements. Suchstatements do not constitute historical fact and reflect the beliefsand expectations of the Corporation’s management. The words“anticipates,” “hopes,” “expects,” “estimates,” “intends,”“projects,” “plans,” “predicts,” “projects,” “aims” and other similarexpressions are used to identify such statements.

Although the Corporation believes that the expectations andassumptions reflected by these forward-looking statements arereasonable and based on the information currently available to itsmanagement, it cannot guarantee results or future events. Suchforward-looking statements should be considered with caution,since actual results may differ materially from those expressed orimplied by such statements. Securities are prohibited from beingoffered or sold in the United States unless they are registered orexempt from registration in accordance with the U.S. SecuritiesAct of 1933, as amended (“Securities Act”). Any future offering ofsecurities must be made exclusively through an offeringmemorandum. This presentation does not constitute an offer,invitation or solicitation to subscribe or acquire any securities, andno part of this presentation nor any information or statementcontained herein should be used as the basis for or considered inconnection with any contract or commitment of any nature. Anydecision to buy securities in any offering conducted by theCorporation should be based solely on the information containedin the offering documents, which may be published or distributedopportunely in connection with any security offering conductedby the Corporation, depending on the case.

41Focus to Win

IR Contacts

E-mail

[email protected]

Website

www.marfrig.com.br/ri

Address

Avenida

Chedid Jafet,

222 - Bloco A – 3º

andar

+55 (11)

3792-8650

3792-8600

Telephone

@

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