BRF S.A.

Good morning, ladies and gentlemen. Welcome to MBRF's teleconference for the discussion of the results of the second quarter of the year 2026. This teleconference is being recorded and replay can be accessed on the company's website at ri.mbrf.com. The presentation is also available for download. At this moment, all participants are connected only as listeners, and then we will start the Q&A session when more instructions are provided. Before proceeding, I would like to emphasize that the prospective statements are based on the beliefs and assumptions of the administration of the MBRF and the current information available to the company. These statements can involve risks and uncertainties, given that they concern future events and, therefore, depend on circumstances that may or may not occur. Investors, analysts and journalists must take into account that events related to the macroeconomic environment, the segment and other factors can make the results materially different from those expressed in the respective prospective statements. Mr. Miguel Gularte , Mr. Tim Klein and José Inácio Escoceria are present at this teleconference. I would now like to give the floor to Mr. Miguel, who will begin the presentation. Please, Mr. Miguel, you may proceed.

Good morning. Welcome to the MBRF conference for the presentation of the consolidated results of the second quarter of 2026. We ended the period with consistent performance and sales volume record for the second quarter, reflecting the assertiveness of our strategy and discipline in execution in all operations. The liquid revenue reached R$ 40.7 billion in the quarter, a growth of 4.9% in relation to the same period of the previous year. EBITDA totalized R$ 3.2 billion, an evolution of 5.4% with a margin of 7.9%. The recorded liquid profit was R$ 69 million, demonstrating our ability to generate consistent results even in a challenging macroeconomic environment. We continue to advance with our multiprotein platform, strengthening our operations, expanding our presence in the markets in which we operate and expanding the supply of products of greater aggregate value. These movements help to sustain our value generation and prepare the company for long-term growth. Now, to detail the results of the quarter, I pass the floor to our CFO José Inácio Escoceria and I will return to the final considerations.

Good morning everyone. We will continue to comment on the consolidated results of the second quarter of 2026, which contemplates the segments of businesses BIFA América do Norte, BIFA América do Sul and BRF. I highlight that in this second quarter we reported 40.7 billion reais of consolidated liquid revenue. The consolidated adjusted EBITDA was 3.2 billion reais with a consolidated margin of 7.9%. The liquid profit, by the way, was 69 million reais in the quarter. and the reported operating cash flow was R$ 2.2 billion. And finally, we closed the quarter with an increase of 3.41 times the adjusted value of the last 12 months. In the next slide on the left, we present the evolution of volume, liquid revenue and total value and by segment in the year-on-year comparison. We observed growth in all metrics, with highlights for the volumes of the BIF operations. The BIF America do Norte segment contributed 46%, BRF 38% and BIF America do Sul 16% of the total revenue reported in the period. The adjusted EBITDA was 3.2 billion, with a margin of 7.9%, with BRF representing 79%, South America 17% and North America 4%. It is worth mentioning that the captures of the fusion synergies contributed to the reduction of 13% in the comparison II.3.26 vs. II.3.25 of the company's consolidated administrative expenses. In currency terms, 72% of our consolidated revenue is generated in dollars and 28% in reals and other currencies. Strengthening the geographical diversification and the multi-protein portfolio of the company, we presented the breakdown of the revenue, with 45% coming from the United States, 23% from Brazil and the remaining distributed mainly between Asia, the Middle East and Europe, with approximately 40% of the volume of sales from processed products with added value. We will now present the performance by business segment. I give the floor to Team Klein, who will comment on the results of Operation America do Norte.

Thank you, Ignacio. Let's begin with slide 6, where I'll review our second quarter results. Starting with the chart on the left, sales volume increased 2% compared to the same period last year. Industry slaughter volume declined 7%, reflecting lower cattle placements and longer feeding periods. Favorable fed cattle prices relative to feed cost of gain, together with elevated replacement cattle prices, continued to incentivize cattle feeders to extend feeding periods. As a result, average live weights increased significantly during the quarter. Net sales were $3.7 billion, representing an increase of 14.9% versus the prior year. EBITDA was $26 million, an increase of 1.7% compared to last year, resulting in an EBITDA margin of 0.7%. Consumer demand for beef remained resilient throughout the quarter despite record retail prices. While boxed beef prices increased year over year, those gains were insufficient to fully offset the continued increase in cattle costs. Now let's turn to slide seven where I'll review the U.S. market data. Beginning with the chart on the left, USDA reported Kansas live cattle prices averaged 254.45 per hundredweight, an increase of 15.9% compared to the prior year. The USDA comprehensive cutout averaged 391.25 per hundredweight, up 11.1% year over year, while the USDA reported drop credit increased 23.8% to an average of 14.20 per hundredweight. The USDA cutout ratio was 1.54 compared to 1.60 in the same period last year. As anticipated, fed cattle supply remained meaningfully lower year over year, resulting in lower capacity utilization across the industry. Looking ahead, given the current cattle supply dynamics, the significant year-over-year reduction in available cattle being offset somewhat by recent plant closures, we believe second half margins have the potential to improve relative to the first half. We remain encouraged by the strength of beef demand and expect demand fundamentals to remain supportive as we continue through this phase of the cattle cycle. With that, I'll turn the call back to Ignacio.

Thank you, team. Let's now move on to slide number 8, in which we present the performance of South America's operations in the second quarter of 2026. Starting with the graph on the left, the volume was 273,000 tons in the quarter, a growth of 8.8% in relation to the same period of 2025. Passing to the central chart, the liquid revenue, we reached R$ 6.4 billion in the quarter, 26% above the liquid revenue of the second quarter of 2025. Already in the chart on the right, the adjusted debt, we reached a amount of R$ 570 million, a growth of 22% over the same period of the previous year. With this, we reached a life margin of 8.9%, in line with what was reported in the second quarter of 2025. This performance is the result of the gains in productivity due to the investments made in recent years, of the increase in the occupation of industrial complexes and of a greater focus on added value products. Moving on to the next slide, we present to the left the breakdown of the original recipe that reinforces the diversification of the company's footprint. In this second quarter, sales to the external market represented 62% of the total of the operating revenue. Sales to Asia grew, moving on to the current 53% of exports of beef to South America. and sales to North America represented 24%. In the current scenario, it is important to highlight that our exports to the United States benefit from the logistics and capitalization of the National Beef's trade platform. The participation of the European Union in the exports of the quarter was 16% of the revenue of the segment. This percentage falls to 11% when we consider only the exports of Brazil, which in turn represents only 1% of the consolidated MBRF revenue. We present in slide 10 the results of the MBRF operation. In the second TRI 2026, the results were sustained by the balanced supply and demand scenario and the internal market by the sequential evolution of the sold volumes. Starting with the graph on the left, the volume was 1219.14 in the quarter, in line with the same quarter of last year. The liquid revenue was 15.4 billion reais in the period, a growth of 1.1% in relation to the second tri-2025. Reportamos 2,6 bilhões de reais de EBITDA com um patamar saudável de margem de 16,8%, uma expansão de 45 pontos base com relação ao segundo trimestre de 2025. Na próxima página, destacamos o crescimento secuencial de 4,6% do volume vendido no mercado interno. with the contribution of the increase in the number of clients attended and in the items sold. The unification of the sales force, as part of the synergies coming from the business combination, allowed an increase in capillarity with the expansion of the cattle portfolio to 20,000 additional PDVs. In the quarter, we launched products focused on increasing protein consumption, such as the Sadia Pro line. The innovations continue to contribute positively to the result. We also highlight that Asadia and Perdigão again appear as the most selected food brands in Brazil. Below, we present the highlights of the external market. We further expand our export alternatives, with 34 new facilities completed in the quarter. In Turkey, we observed an improvement in profitability. We presented in slide 12 the results of Asadia Halal, one of the largest platforms for the production and distribution of halal protein in the world. In the second quarter of 2026, Asadia Halal presented a new record in profitability, with an adjusted yield margin of 16.1%, An expansion of 690 base points in relation to the same period of 2025. In the last 12 months, the adjusted housing has reached 314 million dollars. Our strong presence in the Gulf countries and our logistics expertise continue to contribute to the food security of the region and to mitigate operational challenges. We continue with the preparations for the IPO of Asadiyah Halal. The initial public offer is expected to be made in the Riyadh stock exchange in Saudi Arabia.

In slide 13, we demonstrated the free cash flow.

BRIDGE showed us an operational cash flow of R$ 2.2 billion. The investments made in CAPEX in the period were 1.4 billion, while the financial expenses totaled 1.6 billion, resulting, therefore, in a free cash consumption of 860 million reais. In the next slide, we demonstrate the consolidated liquid debt at the end of the second quarter of 2026. We reported a liquid dividend of R$ 45 billion, an increase of 2.4% in relation to the first quarter of 2026, with an increase of 3.41 times. We emphasize that we are still focused on the company's capital structure. The current level of leverage directly reflects the conditions of the U.S. government cycle and the consumption of Shiro capital in the first half of 2026, which we will detail in the next slide. In slide 15, we highlight the potential for an increase in the company's cash conversion. In the first two quarters of 2026, there was consumption of Shiro capital. With stock and biological assets above the end of 2025, in the face of market conditions and the seasonality of the business, as presented in the two graphs on the page. In addition to the stock highlighted in the slide, there was also in the second quarter of 2026, consumption in the line of suppliers of more than 600 million reais. The previously mentioned consumption explains what is left in the cash conversion and negative cash flow of the first semester, a scenario that will be reversed in the second semester. On page 16, we show the highlights and advances of the ISG agenda. 100% monitoring commitment of cattle suppliers, with the reintegration of 113 farms into the supply chain, Conquista do selo ouro do programa brasileiro GHG Protocol Reconhecimento com o selo proética da CGU, que destaca empresas comprometidas com a governança corporativa Lançamento de bandejas compostáveis pela Asadia, iniciativa pioneira no Brasil Reconhecimento no Prêmio de Inclusão Socioeconômica do Ministério do Desenvolvimento e Assistência Social Thank you and I give the floor to our CEO, Miguel Gularte, for his final remarks.

For the final remarks of our presentation, I would like to highlight some important advances of the quarter that reinforce our confidence in the company's trajectory. In the North American beef operation, we demonstrated resilience and competitiveness, with an increase in volume even in a scenario of restricted cattle supply. The strong demand for beef and the efficiency of our operation allowed us to continue generating consistent results and expanding the revenue. In the South, we advanced in our expansion strategy, supported by an increase in capacity and productivity gains. The global demand for proteins continues to warm up and our industrial complexes have the ability to export to the main consumer markets, contributing to the evolution of the recipe in this segment. At BRF, we maintained a consistent evolution of results, supported by the balance between supply and demand and by the growth of the volumes sold in the Brazilian market. who reached the best level in the month of June. I also highlight the important achievement of 34 new exports in the quarter, expanding our access to markets and strengthening our ability to capture revenue opportunities and profitability. In the Middle East, the record profitability of Sadia Halal deserves highlight, supported by a price dynamic that remained superior to additional logistics costs. Our presence since the 1970s with the Sadia brand and our competitive differentials of distribution, logistics, commercial capillarity and local production continue to contribute to the service and supply of the region. Another relevant advance this quarter was the capture of 158 million in synergies, as planned for the period, in addition to 328 million in efficiencies through the MBRF+. These numbers demonstrate our focus on simplifying processes and making the company more and more efficient. Advancing in the process of integration of operations and commercial synergy, we started to take the cattle portfolio to 20,000 new PDVs in Brazil. With a unified sales force, we have room to expand even more this customer base, which today has more than 340,000 customers in the country. We also highlight that we have the NationalBeef distribution platform, benefiting our exports from South America to the United States. Before closing, I would like to share a very positive result when we think about the company's recent integration. In our first annual engagement survey as MBRF, we reached an 88% rate among our collaborators. Resultado que supera em 4 pontos percentuais a média das empresas brasileiras e em 3 pontos percentuais o benchmark de organizações de alta performance, refletindo o comprometimento das nossas pessoas e a força da cultura que estamos construindo. Agradeço ao nosso Chairman, Marcos Molina, pela confiança, direcional e estratégico na visão de longo prazo e apoio permanente à construção da MBRF. Our recognition also to the members of the Board of Directors and to our shareholders for the partnership and trust in our management. I also thank our collaborators, customers, integrated producers, suppliers and the communities where we act. The commitment of each of these publics is fundamental for the construction of the results we have achieved and for the continuity of our sustainable growth trajectory.

Thank you very much. We will now begin the Q&A session for investors and analysts. If you wish to ask a question, please press the hand up button. If your question has been answered, you can leave the line by clicking on the same button again. Aguarde enquanto coletamos as perguntas.

Thank you, good morning everyone, thank you for the space here for questions. My first question goes to the BRF segment, which came with A very strong margin above what we had here and the consensus too. And my question is more about an outlook for the second semester for this unit, to understand how you are seeing both the domestic market and what the consumer are responding to the demand for the company's products and what is the expectation for the second semester. And we saw a lot of strength in the first semester of the international segment and export, and if you continue to see a benign scenario in that sense as well. Thank you.

Good morning. About Outlook for the semester, Analyzing the year, we start from a year where I would say that the months that were happening clearly showed a tendency for improvement. February was better than January, March better than February and so on throughout the semester. This is always explained by our commercial assertiveness and capillarity, the strength of our brands, Sadia, Perdigão and Qualia, as well as Bontana and Basse. and that we clearly see a prioritization of the consumer for indices that are based on protein. More than ever in Brazil, protein has always been at the center of the plate and always in the priority of consumption in society and families. If we analyze the international market, we also see a very favorable scenario. We went from December 2025 and on to see a price scenario that was recovering month by month. When we had the advent of the conflict in the Middle East, the company positioned itself in a very assertive way, we continued our embarks, Continuamos atendendo nossos clientes. Isso se mostrou uma decisão extremamente acertada, porque se naquela região o conceito de segurança alimentar era um conceito muito valioso, quando do conflito esse conceito de segurança alimentar se potencializou. E eu te diria que é um conceito que estava mais focado no começo na Arábia Saudita, passou para todo o Oriente Médio. And then it is important to remember that this company, by the guidance of our chairman, already in 2022, made an option for this region, both in its investments and its focus on business. This shows today extremely assertive, we have today this region, and in fact, In the last two years, if you analyze the data from SESECS, the MENA region is more import of Brazilian chicken than even Asia, including China. So this assertiveness, when a conflict comes, He finds the prices in the region already rising and finds a company extremely well positioned, with capillarity, with experience and with very strong brands. So we took this situation and took advantage of it. On the other hand, we have repeatedly, during our calls, repeated that we work a lot with the opening of new markets through new facilities. These new habilitations have already passed 230, we had 34 now in this last quarter, and this is What reinforces the maxim that we always repeat, that the best option is to have several options. So we see this export market, a market that will remain active in an internal market scenario that has been improving month by month, closing the quarter with the best month of the semester. So, this is super important. We see in the export market, to give you some numbers, using BPA data, Brazilian exports of francs grew 4.91%, the European Union grew 2%, and on the other hand, in the United States, exports decreased 1.8%, and a major exporter, Thailand, decreased 6.6%, that is, In all aspects that you take a more critical look at the market, you see a perfect balance between supply and demand and you see a favorable outlook.

Thank you, Miguel. Can I ask my second question? Yes.

First of all, thank you, Miguel, for the very complete answer. The second question is perhaps for Inácio, about the consumption of cash in this first semester. We know that there is this seasonality, Good morning Renata.

In relation to this cash consumption of the quarter and the first quarter in general, as you mentioned, our business has a typical seasonality. The year 2025 was a bit exceptional in that sense, but if we go back to 2024, we had a seasonality in terms of cash generation between the first and second quarter. This year, this effect was accentuated mainly by the effects of the war. As we said in the first quarter, we allocated more than 50,000 extra tons of stocks that are between Brazil and the Middle East due to logistical disruptions. This was, as Miguel mentioned, a company's school. UJI is the capital. Marcos Roberto Badollato Stumpf, Manoel Reinaldo Martins Emilio Carne, Tivemos particularmente ahora en el segundo trimestre un aumento de estoques porque ya comenzamos a formar estoques conmemorativos Tivemos un aumento en el estoque de productos terminados muy vinculado, como falamos, comenzamos con un volumen de procesados Manoel Reinaldo Manzano Martins Thank you very much. Thank you very much. So, we are very confident that, just as we had those seasonal impacts and we made some choices in the first semester, we are going to bring that money to the company's cash flow again in the second semester. In addition to that, and also looking at the company's cash flow, I wanted to take a moment to talk about CAPEX, the quarter as well. CAPEX was super in line, a little above what we had mentioned. We had already talked about the first quarter, that the number of the first quarter was a little below what we expected for the second. But if you look at the first quarter in terms of CAPEX, we are at around 2.5 bi of CAPEX, disregarding the rents. We consider that we have a similar expectation for the second semester of the year, so annualized for 2026 we would land in something close to 5 billion, which is already less than the last 12 months, in the last 12 months we are at 6.2 billion, so we are almost a way down in the last 12 months for 2026, and again we are taking all the seasons for 2027 to get to a lower level, and to be able to reduce another billion to 2027. So, both from the point of view of turnover capital in the second semester, as well as what we are not doing from the point of view of adjusting CAPEX, because we have already made a CAPEX relevant in recent years, and we are comfortable in being able to reduce from now on, we are optimistic to be able to improve the conversion of the company's cash.

Aspecto complementando a resposta do Zé Inácio, essa escolha de stocks que se transformam em caixa no curto prazo, se mostraram extremamente relevantes no que diz respeito a EBITDA, porque nós vimos a Sadia Halal performando um resultado que foi o dobro do ano anterior, o que nos deixa muito bem posicionados para o futuro IPO. Temos certeza que vai ser um êxito da Sadia Halal no ambiente médio.

Perfeito, obrigado Miguel, obrigado Inácio.

Our next question comes from Leonardo Alencar, from XP. Please, Mr. Alencar, your microphone is already free. Good morning everyone.

I would like to ask a single question focused on the National Beef Dynamics, so on the team. I've read some of your readings on market dynamics, trends, and I think we are in an interesting moment with many new variables being digested and more difficulties to see how the impact pace of each one of them will be. So, if I may help, Tim, between yesterday's news of the closure of the Tyson capacity, and their eventual reaction, but just to understand what would be the impact of this news specifically on the dynamics of the National Beef, and the expectation for the end of this month of reopening of the Mexican border, Alessandro Rosa Bonorino, Alessandro Rosa Bonorino Gilberto Marcos Roberto Badollato, Marcel Sacco, Miguel de Souza Gularte,

Before addressing your specific question, I would like to provide some context on how we view the current cycle. This may answer some of your questions. As you know, the cattle cycle historically spans somewhere between 10 and 11 years, peak to peak, trough to trough. Over the course of my career, I've experienced four of these cycles, and the current environment that we're in is consistent with the patterns we have seen in previous cycles. Reduced cattle supplies, excess industry capacity, compressed margins. Historically, these market conditions have led to the closure of the less efficient processing facilities, either temporarily or permanently, helping to bring industry capacity back in balance with available supplies of cattle. From a company standpoint, our business model continues to differentiate us from others in the industry. Our integrated ownership structure, anchored by U.S. Premium Beef, which is comprised of more than 600 farmers, ranchers, feedlot operators, Manoel Reinaldo Martins These investments have allowed us to navigate the current cattle cycle more effectively while maintaining our competitive performance relative to our industry peers. From an industry standpoint, the processing capacity that has exited the industry over the past two years has brought supply and demand into much better balance. Combined with the gradual normalization of Mexican cattle imports into the United States, we believe the most challenging part of the phase of the cycle is now behind us. and we look forward to improvements going forward. Regarding your specific question, certainly the announcement of the plant closure yesterday will impact industry capacity immediately. In the last two years, there's been roughly 10 to 12% of capacity that's exited the industry. So that's a significant event. regarding Mexico. We don't think the impact of that's going to be felt until the latter half of 2027. The cattle that typically come across the border are lighter and they'll go on grass before they go into feedlot. This may be a little different because of the backlog of cattle in Mexico and we'll have a better answer or clear idea on that as cattle start moving north, what the weight breakdowns and we have a better idea of when they'll come to market. So as we look at the current dynamics and some of the things that have taken place in the industry, we really believe that the worst of the cycle is behind us and things will get better going forward.

Thank you very much.

Our next question is for Gustavo Traiano.

Good morning, guys. Thank you for taking my questions. There are two follow-up points here, actually, about this cash generation discussion that Inácio already mentioned. The first one is about the capital rotation, when you mention that you expect a release of almost the entirety of the first semester, in the second semester. I just wanted to try to match this perspective of yours a little bit with how you understand the risk of El Nino Thank you for watching! I think that would be the first question. And the second one is about Capex. Inácio already said that Capex for 2026 is more or less 1 billion below 2025, which you expect to reach a slightly lower level in 2027. I would like to try to match a little what you understand to be the maintenance level of Capex, recurring, given all these investments in a slightly higher level than we have seen in recent years. So, if we could try to quantify a little better, if you understand what this maintenance CAPEX would be on the consolidated platform, looking at 2027, if we would already be at this level, and if we get a granularity per segment, what is a recurring CAPEX level per division, I think it would be even better. Thank you very much.

Good morning, Gustavo. Regarding the first question and the risks of the child, Since last year, with a positive ground environment that we've been surfing in the company, we've been working with elongated stocks. Not necessarily stocks, but elongated ground positions. So we've already come... And if you remember last year, we already came, we made a bigger purchase last year in Safrinha, ok? And we are now taking long positions in grains, not necessarily with physical purchases, but with thermo contracts, which is the instrument we are using. So, if in fact the company has been practicing a policy of extending its exposition, Tentar mitigar os riscos, assegurando o nivel de precios que temos visto neste ano. E eu não espero nada diferente para este ano. Nós vamos, provavelmente, ter um nível de compra física similar ao do ano passado, na safrinha, mas nós vamos continuar alongando a posição via outros instrumentos, como, por exemplo, contratos a termo, What do we do? So, not necessarily a longer position in grains, there has to be a physical purchase and spending of turnover capital. We are going to continue elongated, we are already doing that, we already did that last year, but not necessarily this positioning will reflect a greater consumption of turnover capital for the second semester.

Complementando o Inácio, é importante ter presente que a RF tem todo um histórico de muita assertividade no que diz respeito ao posicionamento do que tange a grãos e insumos de produção. Nós temos equipes permanentemente monitorando in loco, diferente In relation to the second question about CAPEX,

Basically, as the maintenance capacity, the minimum capacity that we have in the company is around 3.5 to 4 billion. So, really, our audio for 2027 is to get closer to what would be the band's price. If you want to open this by business, and I think that historically it is possible to accompany this and see this with the historical BRF and Marfrig when they were two companies that were not yet merged, approximately from those 3.9 billion to 4 billion that would be that maintenance capex, 2.5 to 3 billion are from the BRF business, and Bi, approximately, is a bovine business between National Beef and American Beef.

Congratulations, we have a very favorable situation that allows us to see another look at a smaller CAPEX by 2027, because the investments we have made in the last four years allow us this comfort and allows the company to keep growing. It was very clear in the assertiveness of the investments of National, which is almost 1 billion dollars, more than 1 billion dollars within 2020 so far, which has also given its results transformed into EBITDA. In other words, it is very clear that this company made choices and these choices were right.

Thank you, Inácio and Miguel. It's clear. Our next question comes from Henrique Brustolini, from Breda's Club P. Good morning everyone, it's good to talk to you and thank you for taking my questions.

I wanted to focus on BRF, specifically on the domestic market, where we see a sequential margin improvement. It would be interesting to hear what part of the portfolio of the company that helped in this sequential recovery that we look at in the domestic market. But we also continue to see pressure in swing prices that tends to impact some of the categories of processed volumes. So, how do you see this dynamic over the second semester, this trend of margin recovery persisting? And connected to this point as well, BRF had a growth in the stock of finished products in the range of R$ 900 million. I just wanted to hear a little bit about what's behind this growth, whether it's stock in waters, Thank you very much.

Henrique, temos o mercado interno movimentando de uma forma crescente, melhorando mês a mês. Nós, no início do ano, fizemos um ajuste de preço. Esse ajuste de preço teve que sofrer, a partir de fevereiro, uma readequação. This re-adjustment was made in some categories and from there the market began to develop and perform better. It is also evident that the economic and consumer situation of society has been helping in the sense that people are looking for more protein and are prioritizing the consumption of proteins. On the other hand, the MBRF has made a very strong investment in the last few years with regard to products of higher quality and added value. And these products, as we always emphasize in all our conferences, they have a resiliance of consumption and a resiliance of maintenance of values greater than the natural category. Thank you very much. We are very confident that we are entering a semester that is characterized by our best performance from a commercial point of view among others. because it's still Christmas, synonymous with this day in Portugal. So we see this with a lot of confidence. We will continue to work, evidently, to increase our capital, the possibility of adding a portfolio of bovines to our BRF GDP portfolio, Manoel Reinaldo Manzano Martins This is a tremendous trajectory that will continue to allow us to make the right choices, managing profitability and making our strategy viable.

Complimenting Miguel's answer, the fact that in a sequential addition to the volume of internal markets that clearly had an advance in the second quarter in relation to the first quarter and that boosted the profitability of the internal market, we also had a sequential advance in relation to the results of the Turkey platform, which for me helped me in this advance. Turkey has been navigating with margins Carlos Acero, and presented a good second quarter. I think those were the two highlights in relation to the sequential advance of the margins. In relation to your question, Enrique, in relation to this question with the BRF, In a combination, on the one hand, as you mentioned, we started preparing for the commemorative campaign, so we formed a stock of finished products, a little more than 100 million are applied for commemorative stocks that began to be produced in the second quarter. And the rest is very much linked to, as we said, we entered the year and we are in a year where the first semester, the number of students has been growing, but we started below what was expected for the year.

So, eh, eh, eh, eh, eh...

We must begin to raise this stock again for politics. The stock in waters linked to Jalal has a greater impact in the first quarter. However, in the second, in the second, in general, we maintained that stock more than we formed in the first quarter. So, in the second quarter, more commemoratives and a portfolio with the company From now on, we should start again to bring these stocks into politics.

An important aspect, in addition to Ignacio's explanation, is that these water stocks, which today are in the range of 50,000 tons, are starting to reach their destination and will surely turn into cash through the second semester. Miguel Inácio, thank you very much.

Our next question comes from Isabella Simonato from Bank of America. Please, Isabella Simonato, your microphone is already free.

Good morning everyone, thank you for the call. My question is for the team, a little on the side of the demand for cattle and bovine in the United States. I think that all the movement of the last two years in relation to price and resilience of the category, I think it draws a lot of attention. But more recently, I think that despite the seasonality, we have not seen a... So I wanted to understand how he is seeing the dynamic of beef meat, since this has been a relevant part of the profitability equation. Thank you.

Yes, to answer your question, we did not see the normal run-up during the barbecue season as we have in the past, and that certainly impacted the latter part of Q2 and the first part of Q3. The biggest reason that we see is that we didn't have the retail featuring like we normally do because of the price of beef. and I think the price was at a level the retailers decided not to feature beef heavily which you move a lot more beef when you feature it and that's what caused the The lack of run-up and cut-off prices. Beef demand overall is still very, very good. If you look at the HRI trade, the restaurant trade, it's very strong. So there's not a lot of trade-off to other proteins from beef, even at high prices. So really the main issue was lack of retail featuring. We are starting to see that now that prices have come down. Retailers are stepping back in and out. Thank you very much. Our next question comes from Lucas Ferreira, from JP Morgan. Please, Mr. Ferreira, your microphone is already free.

Hello everyone, good morning.

There are two follow-ups about the previous comments. The first one for Tim. You said that the capacity of the industry closed around 12%, if I'm not mistaken. I would like to know if this is a liquid closure estimate, because other plants have also begun to operate in the last two years. In fact, my question is more to understand the most recent closings that we saw from the end of last year to here. How much do you actually see of reduction of discount in daily heads, for example, of the closings that we saw from the beginning of the year until now? And another follow-up for Inácio, Inácio, just to understand the contracts you mentioned in the middle, if they already have a fixed price or if they only guarantee volume and this price is determined by the market? Thank you.

Yes, to answer your question, prior to the capacity reductions, we were processing as an industry 100,000 fed cattle per day, and now it's in the high 80s, and that's net of any additional capacity that's come on. The most recent announcement by Tyson yesterday takes 3,000 head out, and that's an immediate decrease. Thank you for watching.

Good morning, Lucas. I'd like to ask you a question.

We have several types of contracts. We have the option of going with a fixed price or leaving the price open to fix it later. But obviously, with the risk that we are facing, Marcos Roberto Badollato

Our next question comes from Matheus Enfeldt from IBS. Please, Mr. Enfeldt, your microphone is already free.

Good morning everyone, thank you for your time. My first question is about BRF in the domestic market, I think it was quite clear the short-term dynamics, but I would like to think a little here in 2027, we have heard a very negative message coming from retail, In the second question, the leverage is still relatively high. I understand that there is a matter of seasonal turnover, but even adjusting to that, it still seems to me like a high leverage, which depends a lot on a turn of the cycle at National, which may be materializing, or is materializing, but maybe only a substantial leverage in 2028. So, my question is, is there any more short-term leverage, any portfolio adjustment that you think is necessary to do at this moment, potentially the Halal IPO to help at this moment? So, try to think of levers here to reduce leverage in a more forceful way, in case you think it's necessary or not. As you understand, it's just a matter of waiting for things to go as you see them. Those are your questions, thank you very much.

Mateus, we have to pay a lot of attention when we listen to the outlooks in the retail space, Marcos Roberto Badollato Marcos Roberto Badollato, Manoel Reinaldo Martins Marcos Roberto Badollato It has grown, so far, by 4.91%. Brazilian export has grown by 572,000 tons in January and April of 2025. 583,000 tons since January-April of 1926, a growth that exceeds 2%. Nothing indicates that this will suffer an alteration in the medium and long term. In our specific case, the NBRF, we are very focused on continuing to open new destinations through new facilities.

Good morning, Mateus. I have a question for the bench. Obviously, 3-1-4 is at the top of our level, the best in the bench. As you mentioned, it is a direct consequence of, on the one hand, the cycle of almost zero contribution due to the National BIF, a normalized National BIF, which would be the leverage below two and a half times, and also the cycle of loans, which obviously increases and is weighing on our debt service. We are going to talk about this perfect storm from the point of view of circumstances. We are still confident that we can stabilize the storm at this level and gradually start to bring it down. How and what tools do we think we can use to do that? First, management. We believe that, on the one hand, life, as Gerard mentioned, has a tendency to start improving the business of the United States. On the other hand... We have the synergy that we are going to continue delivering and that is already reflecting a very good performance from the company's point of view. We are going to continue our work on efficiencies. On the one hand, we understand that we have an upside to gradually start to bring the market down. On the other hand, as we have already said, we have the opportunity of working capital in the second semester, to bring that working capital that we consumed in the first semesters back to business. And thirdly, Ucapex, as we have already finalized a previous question, Ben Caindo, okay, y nos tenemos un compromiso de traer el M2026. Esas iniciativas, vamos a hablar, orgánicas, entendemos que conseguimos traer a la bancación gradualmente para abajo. Adicionalmente a eso, como se falou, como un facto extraordinario, We still have to receive the 75 million from the payment of the first transit to the Jalai, which we have not yet received, it does not enter the company's cash. It will enter at the end of the year. And we have, via IPO or via a moment of participation of APC, their right to... Manoel Reinaldo Manzano Martins Thank you very much.

Our next question comes from Laura Hirata, from Santander. Please, Ms. Hirata, your microphone is free. Please, Ms. Hirata, your microphone is free.

Oi, vocês me escutam?

Agora sim. Pode prosseguir.

Bom dia, pessoal. Obrigada pelo espaço. Bom, eu queria explorar dois pontos. O primeiro deles seria em relação à VRF e especificamente falando sobre processados. A gente queria entender melhor um pouco como vocês veem o ambiente competitivo no setor e aí puxando mais para a precificação e também para o consumo doméstico e tendo em vista que a gente está vivendo um cenário de oversupply aqui de and other people who have brought prices down. If you could also open the performance by category, it would help a lot. Another topic that I wanted to address here would be regarding the plant in Quarimbó, Uruguay, which was recently invaded by China. I want to better understand how the negotiations are in relation to this. If you could give a little more color in relation to its size, its representativeness, E qual é o foco? Eu entendo que vocês fizeram recentemente um CAPEX grande, com foco em processados, em valor agregado, então eu queria entender um pouco melhor o quão representativo seria esse embargo. Essas seriam as minhas perguntas. Obrigada.

Good morning, Laura. Subprocessed, we have a processed market, having some influence, it is true, regarding the raw material, but we, with the commercial capital that we have, Força das nossas marcas e a possibilidade de transitar com produtos processados tão aceitos no mercado, nós conseguimos offsetar a parte dessa queda e não transferir isso para preços. Tanto é que nós vemos um processo de crescimento Marcos Roberto Badollato Marcos Roberto Badollato Marcos Roberto Badollato Miguel de Souza Gularte, Manoel Reinaldo Manzano Martins

The only category of processed products that is low or that has an increase compared to the previous period is really the bottled ones. The rest of the portfolio is at a healthy level and very resilient in terms of pricing. In relation to CAPEX, which was your other question, the CAPEX of processed products, Basically, between 1925 and 1926, we added 160,000 tons per year of processed goods in Brazil, that is, almost 10% of the volume we had. And if we look at the international level, among the three projects, which are the increase of the Quisad factory in Virados Árabes, the Greenfield of Xeda, We are going to put ourselves into operation in the last trimester of this year. And the general factory that we acquired in China, these three projects add approximately 6,000 tons per year, which is almost 30% of the increase in processing capacity that we had in the international segment. So these are the great dimensions of CAPEX that we did previously and the impact Marcos Roberto Badollato, Manoel Reinaldo Martins

We are the largest producer of organic meat in South America and we have the National Beef Platform that supports all our exports, whether they are from Brazil, Uruguay or Argentina. This temporary withdrawal of the Taquarembó plant from export to China, from the point of view of impact, we managed to offset, redirecting to the other three plants that we have, Taquarembó today less than 30% of our E sim, nós fizemos um capex interessante nessa planta, tanto do ponto de vista de produção, produtividade, modernidade, o que também nos permite com essa planta aceder a outros mercados e não só ao mercado chinês. Ou seja, os investimentos não foram feitos especificamente para exportação para a China, a exportação para a China é mais comoditizada, isso aí pode ser perfeitamente absorvido e cumprido pela planta de São José, pela planta Marcos Roberto Badollato Marcos Roberto Badollato We are working with the Uruguayan government to reverse this aspect and we have the expectation that this will happen. If it doesn't happen in the short term, which is most likely to happen, we are absolutely prepared to direct it to other units and, taking advantage of our American platform, National, to continue taking advantage of the good moment that the Uruguayan livestock Thank you, Miguel and Inácio, for the answers. Good day. Our next question comes from Lucas Mussi, from Morgan Stanley.

Lucas Mussi, your phone is already free.

Good morning, Miguel and Inácio. Thank you for taking my question. I have two quick ones. I think the first one would be an update from your point of view on supply and demand issues from the point of view of nature in Brazil. We have seen a lot of discussion in the United States about genetic evolution, the introduction of new genetics with better attributes in relation to mortality, Marcos Roberto Badollato, Manoel Reinaldo Martins In part, because of the execution of you after the beginning of the conflict in the region, but I would like to ask you now, looking at the rest of the year and for 2027, what we should think as a normalized margin level for this business. Do you think that these 15%, 16% that we are seeing are sustainable levels? Or should we go back to that level that we were seeing before, 10%, 11%? How do the investments you made in the region also fit into this context? Thank you, guys.

Marcos Roberto Badollato, Manoel Reinaldo Martins Manoel Reinaldo Martins Marcos Roberto Badollato, Manoel Reinaldo Manzano Martins I would like it to have been bigger over time and better from the point of view of having results. I would say that the choice of our company in this media instrument was extremely assertive and gave the return we expected. On the other hand, we also see that this aspect The perfect balance between demand and supply should not be altered, in principle, in the medium term. The new homes, the new destinations will continue to happen and we will be very attentive to this.

In relation to your question about Zaria Jalal, what we are not seeing in the market is that, on the one hand, there is a slight recoupment of prices. Naturally, prices went up at the beginning of the conflict, and then they stalled at an intermediate level between what was at the beginning of the conflict and after the beginning of the conflict. So, there is a price movement in the region that, as it begins to be better supplied, obviously, the pricing begins to be a little more difficult. But, on the other hand, we are seeing that in the second TRI we delivered volumes as high as we could deliver. We have the opportunity to deliver volumes Manoel Reinaldo Manzano Martins It may be difficult to maintain, but I am absolutely certain that our new level, our new reality It's much better than the historical margin that we had in 2025, which was around 10%. So we are very confident that between the additional volume opportunities that we have and the improvement of Mix via an improvement of the percentage of processing in our portfolio, plus the opportunities that we have via partnership with Doha and the launch of the fresh salt in the region, Marcos Roberto Badollato Marcos Roberto Badollato

Before the outbreak of the war, we already saw a process of price recovery. Prices in the Middle East began to increase already in December 2025. And they continued like this throughout the first quarter, obviously maximized by the conflict. And another factor that I think is important to also refer to, excuse the reiteration of this aspect, When you have, in a region, a food security system that is so deep, so important, so significant, you have such a company, and brands of this company, as we have, that at the moment of this conflict, they could deliver to their hundreds of customers, thousands of customers, products... You end up taking a position, and this position is practically, I would say, almost guaranteed in terms of participation and also in terms of preference, and this translates into price, and price also translates into margin. But beyond that, we started now, in 2026 and more in 2027, to reap the fruits of what was our investment in aggregate value products. Products that meet the need of a society that modernizes itself, of a housewife who leaves home to work and wants practicality. So, yes, we have margins, which are margins that are not impossible to think about, that will remain in the future. We are very confident and more confident. We are working to make this happen. We have an excellent commercial team, we work with our very solid brands, with the preference of the consumer of the Middle East. This was a commitment, it was a decision Our chairman in the sense of focusing on this region. We have an extremely strong team. We are confident.

Perfect. Thank you very much, Miguel Inácio.

Our next question comes from Thiago Bortolucci, from Goldman Sachs.

So, it's within what the company can control and manage in the short, medium and long term. And I think that within the execution, there are three levers that we usually discuss a little in the polls, but I think that consistently they have been introduced in the BRF and now in the MBRF. I wanted to hear from you what are the opportunities for more from now on. The first one is this DNA. This quarter, I think Lucia is doing very well in this trend, the gross margin falls year by year. Manoel Reinaldo Manzano Martins I think the third point is also efficiency, but this time it's portfolio efficiency. You, Miguel, have consistently commented on the opening of markets and non-dependence in a single origin or destiny, and we really like the fact and the repetition You have reiteratedly commented that MBRF sells products with sales and not the opposite. How do all the efforts you have made in the portfolio help to mitigate the risk of China and the risk of Europe from now on? Sorry for the long question, but I think it's very important.

Good morning, Thiago. I will answer, because Inácio compliments me. We follow our efficiency and SDG plans. And one very important thing to say is that when we did the merger, we announced a synergy plan of 1 billion. 630, 620 million, we would already do it now in the year 2026. This is perfectly on track, we are going to deliver this plan and we are perfectly aligned with what our expectation and our intention was. We are executing. We did this, and I think it's important to highlight so as not to go unnoticed, this was a policy that we designed and it validates the process of merger, we said at the time that we were merging, who had a limit for the two companies, even working in parallel collaboratively, to achieve certain results. Results that would only be achieved through a process of inclusion. This is happening in practice, we are still working and we are doing very well in this. It is not a matter of optimism, it is a matter of practice of a plan and execution of a strategy. As far as operational efficiency is concerned, given the company's tone, given that Mr. Marcus, as Chairman, has taken control of it, and charges us daily with this process, we have been working with our efficiency plans, but not anymore. Marcos Roberto Badollato, Manoel Reinaldo Manzano Martins We are living in this company in a very special moment. When you make a merger, you always have a risk of culture or performance differences. Here we are living the merger of two companies in an excellent moment, in two companies with a victorious culture, with a This will happen in practice.

Good morning, Thiago.

Thanks for your question about the tax synergies and the monetization of tax credits. Today, I have to give the answer in two sentences. First, what is already, or what stops when you incorporate companies into this de facto function that we call the NPJs. We are working to have this optionality. We are working on the system level to put the same system in both companies. We are leaving that ready to be executed. It is a practice that brings mainly benefits from the point of view of IR. Basically, you unlock the incorporation step-up. Manoel Reinaldo Manzano Martins Marcos Roberto Badollato, Manoel Reinaldo Martins Manoel Reinaldo Manzano Martins Manoel Reinaldo Martins In the very short term, we are advancing mainly in the SME agenda in a very positive way. And then we have a mid-term plan, we are preparing for that, we are doing everything we can to do that, which will eventually bring us a benefit more in the line of...

A part of the answer to your question was missing. For you to have an idea, Europe, excuse me, in the case of Brazil, in relation to the Rol, it is less than 1%, and in respect of the Aves, it is less than 0.5%. and China, in relation to Brazil, is around 2.7% in relation to Rol. In other words, all that effort we made to open markets, to enable plants, allowed us We now have this situation where a relevant destination, such as China's destination to Brazil, in our case, we can officiate in a very efficient way, directing, as I have already repeated in another answer, to the Nesco platform in the United States. Regardless of what, this also allows us not to have to accumulate stocks, waiting for the reopening of the market through the allocation of the new quotas that Brazil may already start to practice at the end of 2026 for entry into China in 2027. We don't need to do that, we can continue operating from our Brazilian, Uruguayan or Argentinian platform, sending our products to other markets that we diligently open. It is very different to arrive with a product when you have an established platform, and more than established, recognized, as is the case with NationalBeef. In other words, Thiago, complementing and finalizing the answer, it will be as long as your question, we have a company that did its homework from the point of view of housing, Marcos Roberto Badollato Marcos Roberto Badollato Marcos Roberto Badollato Marcos Roberto Badollato