BRF S.A.

good morning ladies and gentlemen welcome to brf conference for the results related to the second quarter of 2025. this teleconference is being recorded and the replay can be accessed at the company website at ribrf.southglobesouth.com the presentation is also available for download in this moment All the participants are connected only as listeners, and then we'll start our session for question and answer when more instructions will be provided. Before we proceed, I would like to take the advantage to reinforce that prospective statements are based on beliefs and assumptions of BRF direction and information available for the company. These statements may involve risks and uncertainties happening inside that they are about future events, and therefore depends on circumstances that may or may not happen. Investors, analysts, and reporters may take into account that events related to the macroeconomic environment segment and other factors may make the results be materially and relevantly different from those expressed in the prospective statements present in this report. conference miguel gulad and fabio mariano i'd like to give the floor now to mr miguel who will start the presentation please mr miguel you can go on Good morning. We would like to thank everyone for joining our conference for the results for the second quarter of 2025. We concluded the first half of the year reporting the best first half of the year in the BRF's history with a bid of 5.3 billion reals and an income of 1.9 billion reals. The results show that the company's operational excellence, strategic vision and financial discipline, and even in an adverse scenario such as the one presented in the quarter, marked by restrictions and poultry exports. We continue to make consistent progress in our market diversification strategy, increasing our active customer base and strengthening our portfolio of high-quality, value-added products with the service of innovations. I'd like now for PFO Mario Fabriano to present the detailed results for the quarter, after which I will return for the closing remarks.

Good morning, everyone connected. On the opening page, I would like to highlight the main financial indicators for the second quarter of 2025, starting with net revenue, which reached 15.4 billion reais, 3% higher than in the same period of 2024. EBITDA came to $2.5 billion for the quarter, totaling $5.3 billion year-to-date. The best first half in our history, with performance 11% above the same period last year. This contributed to a net income of $735 million. In the quarter, 1.9 billion for the semester. Free cash flow performance was approximately 850 million, or 1.3 billion when we're excluding the impact of hand-in-plan acquisition in China and the exchange rate variation on cash. Concluding this slide with leverage, we reached 0.43 times the LTM EBITDA, the lowest leverage in our history. On our next slide, page 4, on the left-hand side, we show the historical evolution of gross profit, with profitability of 26.9% for the period. We reported gross profit of 4.2 billion reais, 7% higher than in the second quarter of 2024. On the right-hand side, we can also see the evolution of EBITDA and margins, highlighting the stability for operational results. We will now present performance by market business segment. Starting with Brazil, we continue to evolve consistently. we reported EBITDA of 1.3 billion, of a margin of 16.4%, with successive volume growth, especially in the process products category. On the next page, page 6, we emphasize our ongoing journey of commercial execution improvement, enabling us to achieve the highest second-quarter sales volume in Brazil in a customer base now exceeding 330,000 points of sale. We also observed greater adherence to suggested pricing and increased product assortment in stores. Logistics service levels remain at excellent levels despite the significant increase in volumes. We remain attentive to the needs of our consumers, launching new products in the pies and ready-to-eat snack categories, as well as cold cuts. We also promoted new campaigns and sponsorships, strengthening brand visibility and supporting consumer preference. We also highlight the positive results from the recently implemented initiative to expand our budget portfolio through the partnership between BRF and Marfrick Brands. Now, on the following page, we present the international market. We observed healthy margins in this segment, with the contribution of geographic diversification helping to mitigate the effects of avian influenza, which imposed numerous restrictions on chicken exports to several destinations. EVDA margin was 17.3% for the quarter. On the following slide, we highlight on the hollow market the launch of CediaFresh, chilled chicken line in Saudi Arabia through the Invesi Doha poultry. We recorded 1.4-point percentage market share gain in processed products in GCC, driven by the breeded products category. In Turkey, we continue to focus on increasing processed product volumes, which grew 7% year-per-year. helping to mitigate the effects of higher local supply of fresh chicken and lower disposable income, both of which have pressured local price levels. We maintain market share leadership with Sadia at 36.2% and Banff at 24.1% in their respective markets. On the right-hand side, we present highlights from direct export segment. We expanded business opportunities with 11 new export authorizations in 2025, contributing to price maximization. Since 2022, there have been 198 new exports licenses. which has allowed us to offset part of the effect caused by restriction on chicken exports. We also highlight the launch of new products, advances in processed products in the southern cone, and the first shipments of beef cuts under Saria brand to key destination. Now, I would like to conclude the business segment presentation on the next slide with the performance of ingredients and diets. The segment reported EBITDA of 52 million reais. In part, we complemented SAP implementation, strengthening controls, unlocking administrative synergy capture, and expanding our customer base by 8%. In ingredients, we continue to diversify both of our product and market portfolio. Next, we share the progress of our efficiency, and now also growth program presented in base 100 format. On the left-hand side, we can see annual improvements in poultry and swine feed conversion and yield indicators, with relevant gain captured. On the right-hand side, we present improvements in plant utilization and volume sold. We have made significant progress since 2022. at a pace of 50% higher than the historical average of the last six years. On page 12, we consolidate the following ESG highlights. Important recognition in climate change initiatives, especially for greenhouse emission management through supplier engagement and the offsetting of emissions from the quality advertising campaign, which earned the carbon-free seal. Promotion of the Education for the Future campaign of our institute benefiting over 5,000 people. Lastly, the publication of the fifth Transparency Integrity Report reaffirming our commitment to ethics and compliance. On page 14, we present information related to the company's capital structure. On the left-hand side, we can see the reduction in net debt and leverage, the lowest in-depthness since 2011. On the right-hand side, we can see the debt profile, which remains diversified and long-term, with no short-term maturity concentration, a very comfortable liquidity position. On the next slide, we show free cash flow. The chart shows operating cash generation of 2.5 billion reais in the quarter, investment outflows of 1.3 billion including the Henan plant acquisition in China, and financial outflows of 400 million. resulting in free cash flow of 842 million reais or 1.3 billion excluding acquisitions exchange rate variation. On slide 16, we can see the reduction in net debt during the period. We reported net debt of 4.7 billion reais after shareholder remuneration versus 6 million in the first quarter. Lower repayments will continue contributing to lower interest expenses in 2025. Thank you for your attention, and I'll hand it over to our CEO, Miguel Goulart, for his closing remarks.

Thank you, Fabio. To conclude our presentation, we would like to highlight that the solid results for the period demonstrate our consistent track record of efficiency and value creation, which translated into the best EBITDA for the first half of the year of 5.3 billion reals, Also, the lowest labor ratio ever recorded in the company's history at 0.43 times. We also highlight the maintenance of our efficiency program, BR+, which, through continuous process improvement, continues to generate gains for the company. In this quarter, we recorded a capture of 208 million reels, optimizing our results with actions aimed at improving management indicators. We also emphasize an important step towards growth and strengthening of our presence in the halal market through a Doha Poultry Company. We launched it in July, the Sadia Fresh line of chilled poultry produced in Saudi Arabia, further strengthening our strategic partnership with the kingdom. In addition, we increased our shared and processed products in the GCC product countries driven by breaded products category. In Brazil, we had another quarter of consistent progress in our commercial execution. The growth in volume and net revenue of 15.4 billion reals We're strongly driven by the increase in the customer base, which now exceeds 330,000. We continue to expand our offering of value-added products with assertive innovations in portfolios both for Sadia and PrettyGo. We also highlight the positive results of the expansion of our hamburger portfolio through the partnership between Sadia Basi and Vertigo Montana, brands leveraged by the breadth of our sales and distribution force. We reiterate that the market diversification strategy remains to be essential for BRF. We will continue to expand our export options, strengthening our global presence. Together with our robust data intelligence system, this strategy has given us an important competitive edge for timely decisions according to the scenario at hand. We continue to value our teams. In the last 12 months alone, we filled more than 70% of leadership positions through recruitment and recognition of our internal talent. Guided by the pursuit of operational excellence and financial discipline, we remain steadfast and optimistic in the company's journey towards sustainable growth. Based on our commitment to quality, safety, and integrity in everything we do. I would like to conclude by thanking our Chairman and Controller, Marcus Molina, for his support and strategic direction, our shareholders and the Board of Directors for their support along the way. Our sincere thanks to our customers, integrated producers, suppliers, and communities where we operate. And finally, I'd like to thank you for more than our 100,000 BRF employees for their commitment for the excellent quarter that we have achieved together. Thank you. Well, we'll now start the Q&A session for investors and analysts. In case you want to make a question, please press the button, raise your hand. If your question has been answered, you can leave the queue clicking on the same button. Wait until we collect the questions. Our first question comes from Gustavo Troiano from BBA. Please, Mr. Troiano, your microphone is open. Good morning, everybody. Thank you for taking our questions. People, we have two points that we would like to explore with you today. The first one related to avian flu. When we look at the impact in the semester, it was very limited. The impact was very limited when we look at the numbers. What I wanted to hear from you, Miguel, focused on the part of reallocation and the permits that you developed in the past few years. What was the impact like? How did you mitigate the impact in China with this permit and more focused on Paul Cutt, which is a relevant market when we look at China and CISACs? It suggests that basically exportations were zero to there. So I understand that in other cuts you're able to reallocate with more facilitation after all these permits, but I wanted to focus on this cut specifically to understand on the limit potential to recover the margin from now on in case we see the rehabilitation of the market. I wanted to hear from you about these reallocations within the international market. and how you specifically deal with this cut that we know that is very important for the profitability of the company. And the second point related to cost, when we get the prices of commodities up to the moment in the year, they have dropped, especially grain. And we haven't seen a reflection in your costs, even internationally, raised a little bit, and you mentioned them in fact. But I wanted to hear from you the perspective of this specific line of unit costs going forward in line with the commodities that are decreasing that we have seen over the year, if we should expect any decrease in this unit cost line in 2025. Thank you. Good morning, Gustavo. Talking about avian flu, it's very important to analyze the aspects from the perspective. In the perspective aspect, in the past two years, BRF has worked and has been able to open permits, to get permits and plan permits in over 198 occasions. This has obviously allowed us to go through this episode in... much more agile manner and assertive manner than the episode that we had last year on Newcastle disease in Rio Grande do Sul in Brazil. For me, on the other hand, it's important to see that the agricultural ministry has done an excellent work together with BPA the sense of all the information and agility and transparency would reach all the markets in the timely manner this allowed that all the process of closing would have its process shortened and more agile so we knew exactly what to do for that country and we were able to execute what we should do in an assertive manner it's also evident that in the case of avian flu and safety of biosecurity in a Brazilian production system, a disease that is endemic. So we only had only one case in our method. Brazil in the work and all the technical area either for production or the ministry has been doing in the past few years that allowed us very fast to resume most of the markets even with a much shorter time than it was estimated we continue close today the Chinese market it is extremely relevant and markets in Europe I highlight that on the 18th of June Brazil delivered the documents with international bodies and we should have these reopening taking place in the next coming days or weeks. Everything indicates that this should happen. Over the aspect of reallocation of products, when you have 198 new options, you are able to transit in different locations and destinations and mitigate impacting volume and price. BRF also moves really well in the internal market with Asagiya and Ferdigon brand. We have been able very quickly to make decision in face of the episode of the avian flu. We were able to redirect to the internal market products that before were reallocated from exportation to internal market. In the case of China, specifically answering your question about Pong, Obviously, China has a compensation value for this product much higher than all the other markets, but it's not the only market. We could sell and sell feet in Hong Kong or Africa, then obviously there is a downgrade in price that we can mitigate in volume, but not in financial impact. And I also like to remind you that BRF has the pet food division, so animal feed can be turned into product for pet food, pet feed.