MANAGEMENT REPORT

FIRST QUARTER 2020 RESULTS

São Paulo, May 11, 2020 – BRF S.A. (B3: BRFS3; NYSE: BRF) – “BRF” or “Company” today announced its first
quarter (1Q20) results. This report includes results recorded in Brazilian reais, pursuant to the Brazilian
corporation laws and the accounting practices adopted in Brazil, and in compliance with the International
Financial Reporting Standards (IFRS), and are compared to the same period in 2019, where indicated.

Market Capitalization
OPERATING HIGHLIGHTS (Continuing Operations)
R$15.23bi
US$2.70 bi CONSOLIDATED
• Net revenue of R$8,949 million in 1Q20 (+21.6% y-o-y)
Stock Prices • Adjusted EBITDA of R$1,251 million in 1Q20 (+67.2% y-o-y)
BRFS3 R$18.74 • Adjusted EBITDA margin of 14.0% in 1Q20 (+3.8 p.p. y-o-y)
BRFS US$3.32
• Net loss of R$38 million in 1Q20
Base: 05/08/2020
BRAZIL SEGMENT
Shares outstanding: • Net revenue of R$4,655 million in 1Q20 (+18.1% y-o-y)
812,473,246 common • Adjusted EBITDA of R$611 million in 1Q20 (+63.1% y-o-y)
shares Adjusted EBITDA Margin of 13.1% in 1Q20 (+3.6 p.p. y-o-y)
713,446 treasury
shares
INTERNATIONAL SEGMENT
Base: 04/30/2020
• Net revenue of R$4,013 million in 1Q20 (+25.6% y-o-y)
Conference Call
• Adjusted EBITDA of R$682 million in 1Q20 (+82.7% y-o-y)
Monday • Adjusted EBITDA Margin of 17.0% in 1Q20 (+5.3 p.p. y-o-y)
05/11/2020
10:00 a.m. BRT FINANCIAL HIGHLIGHTS
• Operating cash generation of R$1,520 million in 1Q20
9:00 a.m.EDT • Net leverage (Net Debt/Adjusted EBITDA) of 2.68x in 1Q20
• Cash position of R$9.0 billion at the end of 1Q20
Dial-in • Extension of debt average term from 3.1 to 4.5 years
Brazil:
+55 11 3127-4971 or
+55 11 3728-5971

United States:
+1 929 378-3440 or
+1 516 300-1066

IR Contacts:
Carlos Alberto Moura
CFO and IRO
Eduardo Takeiti Pedro Bueno
IRO IR Manager
+55 11 2322 5377
[email protected]
Disclaimer
The statements included in this report concerning the Company’s prospective business, projections, and
potential growth are merely forecasts based on management’s expectations with regards to the future of the
Company. These expectations are highly dependent on market changes and the general economic performance
of the country, the industry, and the international markets, and are therefore subject to change.

MESSAGE FROM MANAGEMENT

Dear Shareholders,

Below, we present our results for the first quarter of 2020 (1Q20), but first, we would like to discuss an issue
that has been affecting all of us, the COVID-19.

We are experiencing unprecedented times in our almost 86 years of history and we have positioned our
Company to act in a determined, resilient, and careful way. All our actions and decisions are motivated by
this administration’s preoccupation with taking care of the public, our employees, customers, the communities
in which we operate, and our stakeholders.

At the first signs of COVID-19, that could potentially affect our operations in Asia, we set up a Permanent
Multidisciplinary Monitoring Committee, composed of the Company’s key executives, advisors, and external
experts, to identify adverse circumstances and define effective countermeasures.

We played a leading role to raise authorities’ and society’s awareness of the relevance of our production chain,
and we assumed a public commitment to remain strong and diligent in the maintenance of our activities.

Since the outbreak began, our top priority has been to guarantee the health and safety of our employees. In
this vein, we remain uncompromising in our commitment to uphold the highest standards of safety and adhere
to the industry’s best practices. Our Essence is to produce quality food for the population while ensuring the
physical integrity of our employees. We total more than 90,000 employees globally, and we cannot surrender
to the challenge to keep our teams healthy, engaged, and determined.

We stress that our social commitment to the communities in which we operate remains unwavering, especially
in the face of this crisis, as we are among the key driving and development forces of the local economies in
several communities. We were among the first companies in the country to pledge significant resources towards
fighting the pandemic. We are donating R$50 million-worth of food, medical supplies, and social research and
development funds, destined to over 50 cities to support more than 150 institutions in the regions in which we
operate. Our roots, history, and mission compel us to search for solutions to this crisis and to take significant
action to mitigate its impact. In addition, we assumed the commitment to keep our workforce in April and May
and initiated a process to hire 5,000 employees to strengthen our operational capacity.

Our economic and financial performance this quarter recorded robust growth – for the fourth consecutive
quarter – when compared to 1Q19, evidencing a consistent long-term oriented management in a Company
with a supply chain as long as ours. Sales volume grew 8%, reaching approximately 1.1 million tons.
Commercial execution drove our net revenue, which surpassed R$8.9 billion, 20% higher than in 1Q19. Gross
profit rose by nearly 50% to R$2.3 billion in 1Q20. Thus, gross margin totaled 25.2% in 1Q20, an advance of
4.6 p.p., in line with the fourth quarter of 2019 (4Q19). The highlight was our Adjusted EBITDA, which came
in at R$1.3 billion, 67% higher than in 1Q19. The Adjusted EBITDA margin hit the mark of 14%, 3.8 p.p.
higher than in 1Q19, and in line with 4Q19. In 1Q20, we reported a R$38 million net loss from continuing
operations, due to expenses relating to the settlement made to shelve a class action in the US (R$204 million),
and net exchange rate variation on our indebtedness.

We highlight the performance of Other International Markets (Non-Halal), which recorded significant net
revenue growth of R$1.7 billion, 46% higher than in 1Q19. Our Adjusted EBITDA totaled R$445 million, reaching
its highest level since 2017, and the Adjusted EBITDA margin reached nearly 27% in the period. We also
reported a superb performance in the domestic market, a result of focus on innovation, marketing, and
commercial execution. Sales volume exceeded 560,000 tons, the highest first-quarter volume since 2015. We
also call attention to the processed food category, which grew 14% year-on-year. Thus, the Brazil Segment’s
Adjusted EBITDA totaled R$611 million, 63% higher than in 1Q19, with an Adjusted EBITDA margin surpassing
13%.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 2

With regard to our capital structure, we reached net leverage of 2.68x, 0.18x higher than in December 2019.
This increase was due to the effect of exchange rate appreciation over our foreign currency-denominated debt,
as the US dollar went up from R$4.03 at the end of 4Q19 to R$5.20 at the end of 1Q20, which impacted our
leverage, exclusively attributable to this effect, at 0.36x. We also reinforced our liquidity position by hiring
credit facilities in the domestic market amounting to R$1.4 billion and with one-year term. Thus, we ended the
quarter with cash totaling approximately R$9.0 billion, in addition to a revolving credit facility of R$1.5 billion,
totaling R$10.5 billion of immediate liquidity. Our indebtedness profile has an average term of 4.5 years and
the first relevant foreign currency-denominated facilities will come due only in June 2022. Our balance sheet
is reinforced to weather such an adverse and volatile scenario.

We know now it is time to exercise caution and care in our decision-making, but it is also a time to be adaptable
and demonstrate leadership. We do not have answers to all the challenges, but we rely on a team of extremely
engaged and agile experts who are committed to the Company’s long term. The 1Q20 results confirm the
effectiveness of our long-term strategy, which is grounded on operational excellence, growth with profitability,
in a high-performance organization, our complementary push & pull operations, and our financial discipline.

Recently, we announced the election of members of the Board of Directors for the 2020-2022 mandate,
enhancing the gender diversity and competencies of this joint committee. We also maintained the stability of
our management by keeping 70% of our members. The evolvement of our corporate governance has been
central to materializing our performance.

On behalf of over 90,000 BRF employees, we express our condolences to families and friends of all the people
who may have been affected by COVID-19 around the globe.

Lastly, we once again thank our employees, integrated partners, and suppliers for their commitment and the
confidence of our shareholders, Board of Directors, customers, and consumers.

Lorival Nogueira Luz Jr.

Global CEO

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 3

HIGHLIGHTS
Key Financial Indicators

Highlights ( Million R$) 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Volume (Thousand Tons) 1,087 1,006 8.1% 1,173 (7.3%)
Net Revenues 8,949 7,359 21.6% 9,290 (3.7%)
Average Price (R$/kg) 8.23 7.32 12.5% 7.92 3.9%
COGS (6,696) (5,842) 14.6% (6,918) (3.2%)
Gross Profit 2,253 1,517 48.5% 2,373 (5.0%)
Gross Margin 25.2% 20.6% 4.6 p.p. 25.5% (0.4) p.p.
Net (Loss) Income Continued Operations (38) (113) (66.2%) 690 n.m.
Net Margin - Continued Op. (%) (0.4%) (1.5%) 1.1 p.p. 7.4% (7.9) p.p.
Net (Loss) Income Total Consolidated (38) (1,012) (96.2%) 680 (105.6%)
Net Margin - Total Consolidated (%) (0.4%) (13.8%) n.m. 7.3% (7.8) p.p.
Adjusted EBITDA 1,251 748 67.2% 1,413 (11.5%)
EBITDA Adjusted Margin (%) 14.0% 10.2% 3.8 p.p. 15.2% (1.2) p.p.
Tributary Impacts ( ICMS and Staple Food Basket) - - n.m. 89 n.m.
EBITDA Adjusted Ex-Tributary Effects 1,251 748 67.2% 1,324 (5.5%)
EBITDA Adjusted Margin Ex-Tributary Effects (%) 14.0% 10.2% 3.8 p.p. 14.3% (0.3) p.p.
Cash Generation (Consumption) 2,774 253 998.1% (114) n.m.
Net Debt (15,589) (15,498) 0.6% (13,269) 17.5%
Leverage (Net Debt/Adj.EBITDA LTM) 2.68x 5.64x (52.5%) 2.50x 7.1%
* In 1Q19, adjusted by effects of asset divestments in Argentina, Europe, and Thailand.

Quarter Highlights and Subsequent Events

• Election of 10 sitting members to compose the Company’s Board of Directors: Messrs. Augusto Marques da
Cruz Filho (independent board member), Dan Ioschpe (independent board member), Mrs. Flávia Buarque
de Almeida (independent board member), Mrs. Flavia Maria Bittencourt (independent board member), José
Luiz Osório (independent board member), Luiz Fernando Furlan (independent board member), Pedro Pullen
Parente (independent board member), Ivandré Motiel da Silva, Roberto Rodrigues (independent board
member) and Marcelo F. Bacci (independent board member), all of them with a two-year term of office;
• Reelection of Mr. Pedro Pullen Parente as Chief Executive Officer and Mr. Augusto Marques da Cruz Filho
as Vice Chairman of the Board of Directors;
• Resumption of Dourados-MS plant operations, whose capacity is approximately 130,000 poultries/day to be
exported to the Chinese market; Plants in Lajeado (RS) and Jataí (GO) are licensed to export to Egypt;
• BRF settlement of US$40 million agreement to shelve the class action filed against the Company, conclude
all pending claims and those to be filed by investors who acquired ADRs (American Depositary Receipts)
issued by the Company, between April 4, 2013, and March 5, 2018. This effect is excluded from the Adjusted
EBITDA;
• Announcement of food, medical supplies donation, and support to social research and development funds,
totaling R$50 million, as a contribution to fighting against the effects of Covid-19 pandemic;
• Lines of credit were contracted with financial institutions in Brazil, in the approximate total amount of R$1.4
billion, with a one-year duration to preventively reinforce liquidity;
• Resumption of margarines operations in Uberlândia- MG unit, to produce Qualy, Deline, Claybom and
Sofiteli brands;
• A share buyback program was created, the maximum number of shares to be acquired is up to seven
million, five hundred thousand (7,500,000) common shares, aiming at complying with the Stock Option
Plan, for shares to held in treasury, canceled or subsequently sold;
• Launch of Sadia Veg&Tal, vegan frozen food, in hamburgers, nuggets, and pies categories;
• The Company acquired for US$8 million, 100% of Joody Al Shargiva Food Production Factory’s share capital,
a processing unit located in Saudi Arabia, whose portfolio of products includes breaded, seared cuts, and
hamburgers, amongst others.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 4

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 5
Tactical actions in 1Q20

Brazil Segment:

Consistent and disciplined actions have been implemented, which resulted in volume gains, net revenue,
market share, and coverage. Such growth was supported by joint actions in several business areas, such as
Categories, Channels, and Brands, ensuring not only a robust growth in 1Q20 but also paving our path.

We continue investing in innovation and ensuring our brands’ competitive advantage in the market. Thus, we
launched new products across all categories, highlighting:

• Veg&Tal, our plant-based line

• Speciale, our hamburger line
• Mac&Cheese ready meal line is expanded
• Bio, our chicken line
• “Assa Fácil” (easy roast) line is extended
• Rib strips are launched
• Cold cuts launches
• Qualy collectible pots are launched

With regard to marketing, we continued advertising campaigns concerned with products more sensitive to
seasonality, such as “Frios Sadia” and “Na Brasa Perdigão”, we supported major launches with media and/or
dedicated activations.

We also inaugurated our digital hubs for Sadia, Perdigão, and Qualy brands, making available approximately
500 tutorial recipes to help our consumers during the lockdown period.

A combination of marketing and digital activities through our “Performance LAB” is essential to increase our
brands’ preference in the digital environment, and manage consumer knowledge to obtain and create a
consumer insight-based agenda.

We also endeavored our efforts to improve our commercial execution, stressing productivity, and different
activations in a few stores. Thus, we significantly enhanced our out-of-stock levels, services level at store,
and logistics. All these initiatives, coupled with innovation and marketing, contributed to our growth in virtually
all channels.

Referring to people and culture, we underline the following actions: i) the implementation of the People
Indicators Book – executive vision; (ii) the new health, safety and environment (HSE) plan; (iii) the
implementation of the Talent Acquisition hub; (iv) the mapping of critical positions + shielding plan; and (v)
the new People Executive Committee.

International Segment:

1Q20 was the first quarter, after five years that the USA exported poultry again to the Chinese market. In
order to defend our position in the market, we ramped up poultry volumes sold in the region, besides adopting
a pricing strategy for our pork cuts focused on improving profitability. Thus, we launched the Sadia pork line
targeting the Chinese market, for instance, the Hema chain.

We still expect a recovery of swineherd in China but to be seen very slowly, without significant changes in
protein supply in the short term. As a result, we believe that prices will remain under pressure and the Asian
market will continue posing excellent business opportunities, especially when we consider the product
complementarity with the Brazilian market.

In the Halal market, we resumed our exports to Iraq from Turkey, gradually raising volumes during 1Q20. We
also bolstered sales of Sadia and Banvit brands in our portfolio, reaching market shares of 64% and 77% in

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 6

GCC countries and Turkey, respectively. We endeavored our efforts to increase our presence in retail, offsetting
the foodservice restrictions on the back of the COVID-19 pandemic. We also advanced in innovation, by
launching 15 new SKUs in GCC countries.

Concerning the temporary halt of plants in the cities of Dois Vizinhos-PR and Francisco Beltrão-PR by Saudi
Arabia, we quickly rescheduled our operations to other 5 licensed plants, using these two plants’ production to
serve other markets.

We advanced the International Market Segment’s team engagement survey, reaching a score of 85 points,
above the level of comparable companies in the international market.

Operations and Supplies:

Our Operational Excellence System – SEO already trained over 41,000 people, exceeding 350,000 hours of
training. We reached 64%, 58%, and 51% of adhesion to SEO elements in pilot units, first and second wave
of implementation units, respectively. We included the implementation of Digital SEO, aiming for the rapid
decision-making process, scalability, and greater control over the process.

Our Direct and Indirect Supply area, through Value Engineering projects, raised nearly R$15 million in 1Q20.
Also, we guaranteed the supply of materials and inputs for our units with a minimum out-of-stock level, despite
the volatile and adverse scenario of COVID-19 (ex. fast-track of suppliers ratification and less bureaucracy).
We also mitigated, on average, 44% of inflation in procurement spending during 1Q20, decisively contributing
to our cost management.

Below, the evolution of a few indicators of industrial and agribusiness areas versus 1Q19:

• Turnover: 23% global decline, especially the Agricultural Extensionists, with a plunge of 34%;
• Yield: 1% improvement;
• Productivity: 2.4% evolution;
• Idleness (Agribusiness + Industrial): 46% reduction.

Quality, R&D, and Sustainability:

The Quality, Sustainability, and R&D department underwent a restructuring and created an executive board
focused on Quality so that to carry on its approach to the markets, efficiency gains, and prioritization of
excellence in Quality and Innovation.

We also have been diligently working to select technological and product initiatives. Only in 1Q20, we launched
20 new products to bolster our portfolio.

Our efforts towards Quality continue delivering positive results. In 1Q20, we achieved a 23% reduction in
complaint index for products sold in Brazil and the foreign market compared to 1Q19.

Also, as a result of BRF’s proactive response to Brazil’s regulations, we highlight our participation in the review
of chicken breast condemnation criterion adopted by the Ministry of Livestock and Supply– MAPA, through the
Official Circular Letter No. 17/2019. This initiative will have an impact on reducing food waste, estimated at
5,500 tons/year.

Referring to the foreign market, we point out 29 licenses/renewals for five different countries in 2020.

Strategy, Innovation, and Management:

We moved forward in the development of growth alternatives in relation to our last announcement on BRF
Day: bolster our local presence in the Middle East, consolidate our position in Turkey and assess alternatives
for higher growth in China. We are building on and adjusting these assessments to the new trends and the
timing originated from COVID-19.

Specifically, concerning COVID-19, we have been working on two fronts:

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 7

 • The Next Normal – the consumer habits and supply chain trends to be impacted by COVID-19;
• M&A opportunities– the potential acquisitions that may arise in businesses, technology, or processes,
due to the economic impact and liquidity caused by the pandemic. In this regard, in April 2020, we
concluded two transactions:
• the acquisition of the remaining 25% in Al Wafi Al Takamul International Company for Food Products
Limited. Wafi, founded in 2009, today has 7 branches, distributed through major urban centers in Saudi
Arabia, and 440 employees. This company is in charge of distributing BRF products in Saudi Arabia,
ending 2019 with gross sales totaling SAR 2 billion or approximately US$530 million;
• the 100% acquisition for approximately US$8.0 million of Joody Al Shargiva Food Production Factory,
a food processing company, which has a processing unit in Dammam, Saudi Arabia, whose portfolio of
products includes breaded, seared cuts and hamburgers, amongst others. We plan to invest nearly
US$7.2 million, aiming at raising current capacity from 3,600 tons/year to 18,000 tons/year. Thus, we
will increase our footprint, according to our strategy of local production and expansion of the higher
value-added product portfolio. The conclusion of this deal is subject to the compliance with condition
precedents applicable to transactions of this nature, including the regulatory authorities’ approval.

It is worth noting that we continue developing the project of a new food processing plant in Saudi Arabia, with
total investments estimated at US$120 million, according to the memorandum of understanding signed with
SAGIA – Saudi Arabian Investment Authority. Currently, this project has been undergoing technical
specifications and financial modeling.

HR, IT, and Shared Services:

In 1Q20, BRF core values transformation made its headway: the Company adjusted people management
processes, such as individual performance evaluation, and bolstered communication in events, such as the
Sales and Operations Leaders Meetings and training courses – developing behaviors named ‘Above the Line
Attitude’ and ‘Honest and Respectful Conversations’. We also continue building a solid training and development
platform, making available our global new learning tools, such as LinkedIn Learning and GetAbstract. We
began our annual succession plan and we extended such practice not only to executives but also to managerial
and critical positions.

With HR’s digital transformation, we concluded the implementation of the Human Resources global platform in
Turkey. We also carried on the implementation of online platforms for key processes (ex.: development and
succession) and the HR services digitalization and centralization project.

Concerning COVID-19, we have been working with Employee Protection since January 2020, by creating
contingency plans and defining supporting actions for employee and family members. Besides a quick execution
of containment actions, such as suspension of travels, home-office for administrative employees and leave for
employees under the risk group, we also expanded medical services offered to our employees, by making
available telemedicine and psychological assistance, extended 24h hotline (Dr. BRF) and anticipation of the
influenza vaccination campaign, among others.

Referring to the teams physically working in our operations, we reinforced health protocols and processes, with
actions, such as availability of masks, hand sanitizer gel, individual protection equipment, places measuring
temperature, higher frequency of environmental disinfection, traffic and dining hall service adjustments and
an increased fleet of chartered vehicles. All these actions are evaluated by Dr. Esper Kallás, from the Faculty
of Medicine of the University of São Paulo, and specialized consultants of the Albert Einstein Hospital; we also
research and we conform with the best global practices.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 8

OPERATING PERFORMANCE

BRAZIL SEGMENT

Brazil Segment 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Volume (Thousand Tons) 562 508 10.7% 608 (7.6%)
Poultry (In Natura) 128 127 0.6% 128 (0.1%)
Pork and Others (In Natura) 30 29 3.7% 31 (1.9%)
Processed foods 404 352 14.9% 450 (10.1%)
Net Operating Revenues (R$, Million) 4,655 3,940 18.1% 5,085 (8.5%)
Average price (R$/Kg) 8.28 7.76 6.7% 8.36 (1.0%)
COGS (3,506) (3,104) 13.0% (3,702) (5.3%)
Gross Profit (R$, Million) 1,149 836 37.4% 1,383 (16.9%)
Gross Margin (%) 24.7% 21.2% 3.5 p.p. 27.2% (2.5) p.p.
Adjusted EBITDA (R$, Million) 611 374 63.1% 841 (27.4%)
Adjusted EBITDAMargin (%) 13.1% 9.5% 3.6 p.p. 16.5% (3.4) p.p.
Adjusted EBITDA ex-ICMS 611 374 63.1% 752 (18.8%)
EBITDA Adjusted Margin ex-ICMS (%) 13.1% 9.5% 3.6 p.p. 14.8% (1.7) p.p.

1Q20 x 1Q19
Sales volume grew by 10.7% y-o-y to 562,000 tons in 1Q20, reflecting improved business performance across
all channels. It is worth noting that such growth was steeper in processed food (+14.9% y-o-y), fueled by
advertising campaigns, trade activations, disciplined execution, and improved services, as well as booming
demand. Thus, Brazil Segment’s net revenue rose 18.1% y-o-y in 1Q20, in line with a strategy of boosting
service level profitability.

This favorable performance of net revenue, offset the 2.0% y-o-y increase in unit average cost, due to higher
grain costs. Hence, the gross margin increased by 3.5 p.p. y-o-y, reaching 24.7% in 1Q20. This effect is
reflected in the Adjusted EBITDA margin, despite higher marketing investments in the period. Thus, Adjusted
EBITDA totaled R$611 million (+63.1% y-o-y) in 1Q20, with an Adjusted EBITDA margin of 13.1%.

Market Share

At the end of 1Q20, the Company’s consolidated market share reached 43.0%, down 2.0 p.p. y-o-y, a result
of its strategy to stimulate the operation’s profitability by repositioning prices.

In the short term, compared to the last period, we recorded growth across all value-added categories: Cold
Cuts (+0.8 p.p.), Frozen Meals (+0.6 p.p.), and Margarines (+0.9 p.p.), highlighting Qualy brand, which grew
1.1 p.p. y-o-y. It is worth mentioning that Nielsen's measurement partially reflects our sales volume.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 9

 Total BRF*

45.0% 43.9% 44.2% 43.6% 43.0% 43.2% 43.0%

1Bi19 2Bi19 3Bi19 4Bi19 5Bi19 6Bi19 1Bi20

Source: Nielsen

Cold Cuts Margarines

53.8% 53.2% 54.2% 54.4% 54.6% 55.1% 56.0%

50.5% 49.1% 50.3% 49.5% 49.0% 48.8% 49.6%

1Bi19 2Bi19 3Bi19 4Bi19 5Bi19 6Bi19 1Bi20 2Bi19 3Bi19 4Bi19 5Bi19 6Bi19 1Bi20 2Bi20

Frozen Meals Sausages/Franks

48.0% 46.7% 45.4%

44.4% 44.4% 44.4% 45.0%
38.0% 37.0% 37.7% 37.0% 36.2% 37.2% 36.4%

2Bi19 3Bi19 4Bi19 5Bi19 6Bi19 1Bi20 2Bi20 1Bi19 2Bi19 3Bi19 4Bi19 5Bi19 6Bi19 1Bi20
Source: Nielsen Retail Bimonthly – Margarines and Frozen Meals (Feb/Mar reading); Processed Food and Cold Cuts (Jan/Feb reading).

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 10

INTERNATIONAL SEGMENT
Below, the aggregate information from the Halal Market and Other International Markets. However, the
Company changed the way of reporting the international segment connected with its business model. From
early 2020, this segment now is managed in three different groups, namely: (i) Direct Distribution; (ii) Direct
Exports; and (iii) Asia. Exhibit 1 hereto contains a reconciliation of the former model with the new model
considering 1Q20 results. The fundamentals spreadsheet available on the Company’s investor relations website
(https://ri.brf-global.com/en/), contains a quarterly registry comparing this new methodology; from 2Q20,
BRF will report its results according to this new criterion.

International Segment 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Volume (Thousand Tons) 457 429 6.6% 497 (8.0%)
Poultry (In Natura) 358 341 5.0% 386 (7.2%)
Pork and Others (In Natura) 44 31 44.4% 44 (0.4%)
Processed foods 55 57 (3.8%) 67 (17.6%)
Net Operating Revenues (R$, Million) 4,013 3,194 25.6% 3,924 2.3%
Average price (R$/Kg) 8.78 7.44 17.9% 7.90 11.2%
COGS (2,962) (2,530) 17.1% (3,003) (1.4%)
Gross Profit (R$, Million) 1,051 664 58.3% 921 14.1%
Gross Margin (%) 26.2% 20.8% 5.4 p.p. 23.5% 2.7 p.p.
Adjusted EBITDA (R$, Million) 682 373 82.7% 571 19.5%
Adjusted EBITDA Margin (%) 17.0% 11.7% 5.3 p.p. 14.5% 2.5 p.p.

HALAL MARKET

Halal Market 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Volume (Thousand Tons) 277 270 2.6% 290 (4.4%)
Poultry (In Natura) 241 229 5.2% 252 (4.4%)
Others (In Natura 0 1 n.m. 0 n.m.
Processed foods 36 40 (10.8%) 37 (4.0%)
Net Operating Revenues (R$, Million) 2,355 2,058 14.5% 2,195 7.3%
Average price (R$/Kg) 8.51 7.62 11.6% 7.58 12.3%
COGS (1,827) (1,525) 19.8% (1,738) 5.1%
Gross Profit (R$, Million) 528 532 (0.8%) 457 15.5%
Gross Margin (%) 22.4% 25.9% (3.4) p.p. 20.8% 1.6 p.p.
Adjusted EBITDA (R$, Million) 237 285 (16.7%) 169 40.0%
Adjusted EBITDA Margin (%) 10.1% 13.8% (3.8) p.p. 7.7% 2.4 p.p.

1Q20 x 1Q19
Net revenue in the Halal Market grew by 14.5% y-o-y to R$2.4 billion in 1Q20, favored by the depreciated
exchange rate of 18.2% y-o-y and +2.7% y-o-y growth in volumes, reflecting larger exports to the Saudi
market. In January 2019, the Saudi government restricted the number of Brazilian plants licensed for exports,
including BRF’s plants. Thus, prices reacted to such constraint, increasing profitability in early last year. During
2019, BRF suited other production units authorized to export to Saudi Arabia and gradually ramped up export
volumes to the region.

On the other hand, the US average prices were pressured by (i) the Iraq market partially restricting products
imported from Turkey, which negatively affected prices, both in the Turkish market and in neighboring
countries; and (ii) the temporary halt by Saudi’s authority of the operations at our food processing plant in
Abu Dhabi and shipments to Saudi Arabia.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 11

Gross margin shrank 3.4 p.p. y-o-y due to the mix of higher grain and freight expenses. The exchange rate
depreciation, besides affecting costs in the region, also pressured general and administrative expenses, despite
a stricter control of expenses. Thus, the Halal Market’s Adjusted EBITDA totaled R$237 million in 1Q20,
reaching an Adjusted EBITDA margin of 10.1% (-3.8 p.p. y-o-y).

Market Share

We ended 1Q20 with a market share of 35.9%, maintaining our broad market leadership position, despite the
impacts of the Abu Dhabi plant being suspended to export to Saudi Arabia. Below is BRF’s market share in all
categories, according to the latest Nielsen reading:

(i) griller with 46.2% (+1.7 p.p. y-o-y);

(ii) chicken cuts with 51.3% (-5.2 p.p. y-o-y);
(iii) processed foods with 14.9% (-6.5 p.p. y-o-y).

In Turkey, our market share grew by 4.0 p.p. y-o-y to 20.6% in 1Q20, a result of our effective strategy to
strengthen the Banvit brand to the detriment of retailers’ private label brands. We were able to maintain our
leadership position in virtually every category in which we operate in the Turkish market.

OTHER INTERNATIONAL MARKETS (Asia, Africa, the Americas, and Europe)

Other International Markets 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Volume (Thousand Tons) 180 159 13.2% 207 (13.0%)
Poultry (In Natura) 117 112 4.5% 134 (12.5%)
Pork and Others (In Natura) 44 30 46.3% 44 0.1%
Processed foods 19 17 12.6% 30 (34.7%)
Net Operating Revenues (R$, Million) 1,657 1,136 45.9% 1,729 (4.1%)
Average price (R$/Kg) 9.19 7.14 28.8% 8.34 10.3%
COGS (1,134) (1,005) 12.9% (1,264) (10.3%)
Gross Profit (R$, Million) 523 131 297.7% 464 12.6%
Gross Margin (%) 31.5% 11.6% 20.0 p.p. 26.9% 4.7 p.p.
Adjusted EBITDA (R$, Million) 445 89 401.7% 401 10.8%
Adjusted EBITDA Margin (%) 26.8% 7.8% 19.0 p.p. 23.2% 3.6 p.p.

1Q20 x 1Q19
In 1Q20, net revenue totaled R$1.7 billion, up 45.9% y-o-y, due to higher volumes shipped in the quarter
(+13.2% y-o-y) and higher average prices in Brazilian reais (+28.8% y-o-y), deriving from US price increase
(+8.9% y-o-y) and exchange rate depreciation (18.2% y-o-y). The outbreak of African swine fever is still
impacting supply in several Asian countries, resulting in higher demand for imported products. In China, our
volumes stepped up 89.5%, also impacted by a higher number of licensed plants during the second half of
2019, and U.S. prices climbing 24.6% y-o-y. Japan and Singapore, also saw improved commercial dynamics,
with importers fearing an eventual chicken shortage in the market due to higher demand from China.

Our gross profit reached R$523 million in 1Q20, with a gross margin of 31.5% (+20.0 p.p. y-o-y). The best
commercial and operational performance, especially in Asia, were key drivers to stimulate profitability in the
region. Thus, Adjusted EBITDA totaled R$445 million in 1Q20, with a margin of 26.8% (+19.0 p.p. y-o-y).

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 12

 OTHER SEGMENTS

Other Segments + Ingredients 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Volume (Thousand Tons) 67 69 (2.6%) 67 (0.0%)
Poultry (In Natura) 1 2 (31.7%) 3 (56.8%)
Pork and Others (In Natura) 1 1 109.7% 1 106.4%
Processed foods 1 3 (60.7%) 1 13.8%
Others Sales 63 64 (0.5%) 63 1.3%
Net Operating Revenues (R$, Million) 278 225 23.7% 281 (1.0%)
COGS (224) (202) 10.6% (215) 4.03%
Gross Profit (R$, Million) 55 23 138.9% 66 (17.3%)
Gross Margin (%) 19.7% 10.2% 9.5 p.p. 23.5% (3.9) p.p.
Adjusted EBITDA (R$, Million) 41 6 536.9% 45 (8.2%)
Adjusted EBITDA Margin (%) 14.9% 2.9% 12.0 p.p. 16.0% (1.2) p.p.

Adjusted EBITDA for “Other Segments” totaled R$41 million in 1Q20, with an adjusted EBITDA margin of
14.9%. Such improvement is explained by a more solid operating performance at BRF Ingredients and lower
raw material liquidation.

Corporate

Corporate - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Net Operating Revenues - - n.m. - n.m.
Gross Profit (0) (6) n.m. 2 (103.3%)
Adjusted EBITDA (81) (6) n.m. (44) n.m.

Adjusted EBITDA amounted to negative R$81 million in 1Q20, mainly impacted by: (i) R$41 million of provisions
for civil and tax contingencies; (ii) additional provision of R$24 million referring to the expectation of accounts
receivable losses due to Covid-19; and (iii) asset retirement expenses totaling R$14 million.

FINANCIAL PERFORMANCE
Net Operating Revenue (NOR)

Volumes - Thousand Tons 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Poultry (In Natura) 487 470 3.7% 516 (5.7%)
Pork and Others (In Natura) 75 61 24.2% 75 (0.2%)
Processed foods 460 412 11.8% 518 (11.1%)
Others Sales 64 64 0.6% 63 1.7%
Total 1,087 1,006 8.1% 1,173 (7.3%)
NOR (R$ Million) 8,949 7,359 21.6% 9,290 (3.7%)
Average Price (NOR) 8.23 7.32 12.5% 7.92 3.9%

In 1Q20, net revenue totaled R$8.9 billion, up 21.6% y-o-y, reflecting: (i) an improved business performance
in the Brazil Segment, which recorded a volume growth of 10.7% y-o-y and price increase of 6.7% y-o-y; (ii)
45.9% y-o-y increase in net revenue from Other International Markets, fueled by better prices (+28.7% y-o-
y) and volume (+13.3% y-o-y), especially in the Asian markets; (iii) a more favorable exchange rate scenario.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 13

Cost of Sales (COGS)

COGS - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Cost of Goods Sold (6,696) (5,842) 14.6% (6,918) (3.2%)
R$/Kg 6.16 5.81 6.1% 5.90 4.4%

COGS per kg increased by 6.1% y-o-y in 1Q20, reflecting grain average price increase (+11.1% y-o-y
considering the three months preceding the end of the quarter), as well as the exchange rate depreciation
(+18.5% y-o-y in 1Q20) which impacted acquisition costs of inputs and supplies. However, these increases
were partially mitigated by gains deriving from our Matrix Management Expenses program. It is worth noting
that, according to Embrapa (Brazilian Company of Agribusiness Research), poultry and swine production
theoretical costs rose 10.2% and 13.3%1 in the period, respectively.

Gross Profit

Gross Profit - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Gross Profit 2,253 1,517 48.5% 2,373 (5.0%)
Gross Margin (%) 25.2% 20.6% 4.6 p.p. 25.5% (0.4) p.p.

Gross margin stood at 25.2% (+4.6 p.p. y-o-y) in 1Q20, fueled by improved operational results in both Brazil
Segment and in the International Segment. During most of the quarter, before the COVID-19 pandemic, we
moved forward with our strategy to stimulate the operation’s profitability through gross margin maintenance,
allocation of volume in more profitable channels, and improved commercial execution. Hence, unit price
increase fully exceeded higher unit costs of products sold. It is worth noting the maintenance of gross margin
levels in line with 4Q19.

Operating Expenses

Operating Expenses - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Selling Expenses (1,317) (1,141) 15.5% (1,363) (3.4%)
% of the NOR (14.7%) (15.5%) 0.8 p.p. (14.7%) (0.0) p.p.
General and Administrative Expenses (143) (141) 0.9% (197) (27.5%)
% of the NOR (1.6%) (1.9%) 0.3 p.p. (2.1%) 0.5 p.p.
Operating Expenses (1,460) (1,282) 13.9% (1,560) (6.4%)
% of the NOR (16.3%) (17.4%) 1.1 p.p. (16.8%) 0.5 p.p.

Operating expenses surged 13.9% y-o-y in 1Q20, on account of (i) greater marketing investments to
strengthen our brands; and (ii) higher expenses in Brazilian reais in the international market due to depreciated
exchange rates. However, total expenses, as a percentage of net revenue, improved 1.1 p.p. y-o-y in 1Q20,
reflecting higher operating leverage.

Other Operational results

Other Operating Results - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Other Operating Results (239) (77) 211.1% (14) 1,564.9%
% of the NOR (2.7%) (1.0%) (1.7) p.p. (0.2%) (2.5) p.p.

1 Variation in the average production cost index of Embrapa (ICPPoultry and ICPSwine) between 1Q19 and 1Q20.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 14

In 1Q20, we recorded a net expense of R$239 million under “Other Operational results”, whose main impact
is related to the provision recorded to settle the agreement which aimed the shelving of class action, totaling
US$40 million or approximately R$204 million, as per notice to the market of April 23, 2020.

Financial Result

Financial Results R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Net Interest (296) (314) (5.9%) (267) 10.8%
Interest over assets and Net Liabilities (296) (314) (5.9%) (267) 10.8%
Adjusted Present Value (91) (69) 32.7% (80) 13.1%
Net Charges on Rights and Obligations (92) (94) n.m. (132) (30.0%)
Interest on Rights 67 28 141.7% 50 33.7%
Interest over ICMS based on PIS/COFINS - - n.m. 12 (100.0%)
Other Rights 67 28 141.7% 38 76.1%
Charges on Obligations (160) (122) 31.0% (182) (12.4%)
Charges on ICMS over Staple Food Basket - - n.m. 40 n.m.
Actuarial Liabilities - - n.m. (50) n.m.
Contigent Liabilities (57) (19) 199.5% (88) (35.7%)
IFRS 16 (52) (41) 28.9% (41) 26.9%
Commission and other charges (50) (62) (19.0%) (43) 17.6%
Exchange Rate Variation and Fair Value (MtM) (123) (3) 3,942.8% 39 n.m.
Exchange Rate Variation (Assets and Liabilities) (119) 69 (272.5%) 42 n.m.
Hedge Accounting Ineffectiveness (Cash Flow) (1) (55) (97.4%) - n.m.
Net Investment Hedge Ineffectiveness (15) - n.m. - n.m.
Fair Value Total Return Swap - 5 n.m. - n.m.
Fair Value of other Derivatives 12 (21) n.m. (3) n.m.
Other Financial Results (4) 32 n.m. (101) (96.1%)
Argentinian Hyperinflation (23) - n.m. (17) 33.7%
Liabilities with Minorities 53 21 152.5% (90) (158.8%)
IOF and PIS/COFINS over Financial Results (5) (5) 10.7% (6) (17.6%)
Other Effects (29) 15 n.m. 12 n.m.
Net Financial Results (606) (448) 35.3% (541) 12.1%

The net financial result was an expense of R$606 million in 1Q20. The main components were grouped into
the following categories:

(i) Net Interest on gross debt and cash amounted to a net expense of R$296 million in 1Q20, 6% lower than
in 1Q19. Despite a 34.7% y-o-y decrease in net debt and a substantial drop of accumulated DI (Interbank
Deposit), higher exchange rates compared to the same quarter last year, increased the interest expense
referring to the foreign currency-denominated debt in Brazilian reais, offsetting the two factors previously
mentioned.

(ii) Adjustment to Present Value (APV) totaled expenses of R$91 million in 1Q20, R$22 million higher than in
1Q19. The APV refers to the financial income (expense) linked to clients' and suppliers' accounts. This amount
is offset in the gross profit.

(iii) Net Charges on Rights and Obligations amounted to an expense of R$92 million in 1Q20, 2% lower than
in 1Q19, impacted (i) by contingent liabilities expenses of R$57 million; (ii) the adoption of IFRS16, which
increased leasing expenses to R$52 million; (iii) commission and other charges by R$50 million; and (iv)
revenue from Other Rights by R$67 million.

(iv) Exchange Rate Variation and Fair Value (MtM) came negative at R$123 million in 1Q20, reflecting (i) the
exchange rate variation over foreign currency-denominated assets and liabilities of negative R$119
million; (ii) an expense deriving from effectiveness tests of derivatives designated as hedge accounting
and hedge of net investment abroad of R$16 million; and (iii) an income deriving from adjustments to
the market value of derivative financial instruments totaling R$12 million.
(v) Other Financial Results totaled an expense of R$4 million in 1Q20, compared to an income of R$32 million
in 1Q19. The item Argentina Hyperinflation refers to the restatement of non-monetary equity balances
of the Company’s subsidiaries in Argentina, whose economy is considered hyperinflationary.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 15

Net Income (Loss)

Net Income / (Loss) - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Consolidated Net / (Loss) Income - Continued Op. (38) (113) (66.2%) 690 n.m.
Net Margin (%) (0.4%) (1.5%) 1.1 p.p. 7.4% (7.9) p.p.
Consolidated Net / (Loss) Income - Total Consolidated (38) (1,012) (96.2%) 680 n.m.

In 1Q20, the Company posted a net loss for continuing operations of R$38 million, mainly reflecting higher
expenses recorded under “Other Operational Results” relating to the settlement of class action and the
exchange rate variation over foreign currency-denominated assets and liabilities, as mentioned above.

Adjusted EBITDA

EBITDA - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Consolidated Net (Loss) (38) (113) (66.2%) 690 (105.5%)
Income Tax and Social Contribution (14) (177) (92.3%) (432) (96.9%)
Net Financial 606 448 35.3% 541 12.1%
Depreciation and Amortization 572 565 1.3% 584 (2.1%)
EBITDA 1,126 723 55.8% 1,382 (18.5%)
EBITDA Margin (%) 12.6% 9.8% 2.8 p.p. 14.9% (2.3) p.p.
Impacts of Carne Fraca/Trapaça operations 199 11 n.m. 21 n.m.
Forest Fair value - - n.m. 28 n.m.
Corporate Restructuring 0 17 n.m. (1) n.m.
Tax recoveries (74) (4) 1,854.1% (24) 212.5%
Non controlling shareholders (8) 1 n.m. 1 n.m.
Costs on business diposed (Impairment) 8 - n.m. 7 n.m.
Others (0) - n.m. (2) n.m.
Adjusted EBITDA 1,251 748 67.2% 1,413 (11.5%)
Adjusted EBITDA Margin (%) 14.0% 10.2% 3.8 p.p. 15.2% (1.2) p.p.
ICMS PIS/COFINS Impact - - n.m. 22 n.m.
ICMS Staple Food Basket Impact - - n.m. 67 n.m.
EBITDA Adjusted 1,251 748 67.2% 1,324 (5.5%)
EBITDA Adjusted Margin (%) 14.0% 10.2% 3.8 p.p. 14.3% (0.3) p.p.

Adjusted EBITDA in 1Q20 amounted to R$1,251 million, up 67.2% y-o-y. Adjusted EBITDA margin was
14.0%, an increase of 3.8 p.p. y-o-y, reflecting higher profitability in Other International Markets, especially
in Asia, and the Brazil Segment, signaling an improved commercial execution in both markets focused on
stimulating the operation’s profitability. It is worth noting that the Adjusted EBITDA excludes the impact of
provision for class action totaling R$204 million.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 16

WORKING CAPITAL AND FINANCIAL CYCLE
The Company’s financial cycle totaled 15.8 days in 1Q20, a 1.3-day reduction compared to 1Q19, only
considering continuing operations. Such improvement mainly derives from the strategy of extending the
average payment terms with suppliers, partially offset by higher inventories (i) of grains coupled with summer
crop seasonality in the south region of the country; and (ii) finished products compared to the previous quarter
(4Q19), which concentrates a relevant sales volume and usually records the lowest level of inventories in the
year.

Financial Cycle (end of the period –Continuing Operations): Clients + Inventories1 - Suppliers

20.0% 55.0
50.0
45.0
15.0% 40.0
35.0
28.6 28.2 30.0
10.0% 24.3
25.0
20.1
17.1 18.1 20.0
16.2 15.4 15.8
5.0% 15.0
10.0
8.55%

7.51%

8.17%

5.16%

5.19%

5.96%

5.28%

5.36%

5.33%
5.0
0.0% -
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

% Financial Cycle / NOR Financial Cycle (days)

¹Includes short-term biological assets

MANAGERIAL CASH FLOW

Operating cash flow amounted to R$1,520 million in 1Q20, tripling the generation of R$512 million during the
same period last year. Besides the Company’s improved operational results, fueled by revenue growth and
higher profitability in virtually all business markets, lower working capital employed also contributed to
improving operational results conversion into cash.

The cash flow of investments totaled a consumption of R$491 million in 1Q20, versus a generation of R$18
million in 2019. The difference is related to a cash inflow of R$440 million in 1Q19 within the scope of the
Company’s Divestment Plan announced and initiated in 2018.

Lastly, free cash flow totaled R$2,774 million in 1Q20, also positively impacted by exchange rate variation of
foreign currency-denominated cash (R$781 million) and the positive result in the approximate amount of R$1.0
billion, referring to exchange derivatives which hedge the Company’s balance sheet against exchange rate
fluctuations (R$3.90/US$ in March 2019 vs. R$5.20/US$ in March 2020).

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 17

 Million BRL 1Q20 1Q19 4Q19
Adjusted EBITDA 1,251 748 1,413
Impacts of Carne Fraca/Trapaça operations (199) (11) (21)
Debt designed as Hedge Accounting - - (28)
Forest Fair Value (0) (17) 1
Impacts of Trucker Strike 74 4 24
Tax recoveries 8 (1) (1)
Non controlling shareholders (8) - (7)
Others 0 - 3
EBITDA 1,126 723 1,382
Working Capital 10 (71) (102)
∆ Accounts Receivable 342 352 (965)
∆ Inventories (919) (208) 549
∆ Suppliers 586 (214) 315
Others 384 (140) (213)
∆ Taxes 48 (39) 304
∆ Provisions 220 (16) (269)
∆ Salaries/Benefits (103) 46 (77)
∆ Others 219 (131) (171)
Cash Flow from Operating Activities 1,520 512 1,068
CAPEX with IFRS16 (501) (422) (546)
Cash Flow from Operations with Capex 1,019 90 521
M&A and Sale of Assets 10 440 28
Cash Flow from Investments (491) 18 (518)
Cash - Financial Results 1,147 (222) (164)
Interest Income 1 39 26
Interest Expenses (185) (168) (381)
FX Variation on Cash and Cash Equivalents 781 74 (144)
Cash Flow from Financing Activities 1,745 (277) (663)
Free Cash Flow 2,774 253 (114)
New Debt Amortizantions 709 (687) (2,054)
Cash Variations 3,483 (434) (2,168)

Million BRL 1Q20 1Q19 4Q19

Cash and Cash Equivalents - Initial 5,505 6,711 7,673
Cash Variation 3,483 (434) (2,168)
Cash and Cash Equivalents - Final 8,988 6,277 5,505

Total Debt - Initial 18,774 22,400 21,458

New Debt/Amortization 709 (687) (2,054)
FX Variation on Total Debt 3,546 (28) (336)
Debt Interest and Derivatives 1,548 90 (294)
Total Debt - Final 24,577 21,775 18,774
Net Debt 15,589 15,498 13,269

* Amounts referring to Derivatives composing the variation in the balance of gross debt in 1Q20 are mainly associated with hedging
operating exposure in the next 12 months, as provided for in the Financial Risk Management Policy, published on December 19, 2019.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 18

 INDEBTEDNESS
R$ Million In 03.31.2020 In 12.31.2019
Debt Current Non-current Total Total ∆ %
Local Currency (3,446) (3,217) (6,663) (7,614) (12.5%)
Foreign Currency (1,967) (15,946) (17,913) (11,160) 60.5%
Gross Debt (5,414) (19,163) (24,577) (18,774) 30.9%
Cash Investments*
Local Currency 4,206 56 4,262 2,051 107.8%
Foreign Currency 4,393 333 4,726 3,454 36.8%
Total Cash Investments 8,599 389 8,988 5,505 63.3%
Net Debt 3,185 (18,774) (15,589) (13,269) 17.5%

* Cash considered is comprised of Cash and Cash Equivalents, Financial Investments, Restricted Cash, and Derivative Financial Assets

Total gross indebtedness of continuing operations in the amount of R$24,577 million, as reported above,
includes the item, current and non-current Derivative Financial Instruments Liabilities, totaling R$1,572 million,
according to the Note 24.3 of Interim Financial Information (ITR). In 1Q20, amortizations net of funding totaled
R$709 million. Adjusted gross leverage ended 1Q20 at 4.23x versus 8.62x in the same period last year. Also,
the average term of indebtedness was extended to 4.5 years, an increment of 1.4 years from 1Q19.

The Company’s net debt totaled R$15,589 million in 1Q20, R$2,320 million higher than the R$13,269 million in
4Q19, mainly reflecting (i) non-cash effects over gross debt, such as the exchange rate variation of R$3,546
million and liabilities derivatives of R$1,414 million2, and (ii) free cash generation of R$2,774 million. Thus, the
Company’s net leverage, measured by the ratio between the net debt and LTM Adjusted EBITDA, reached
2.68x in 1Q20 versus 2.50x in 4Q19 and 6.14x in 1Q19.

Finally, the Company reaffirms that it does not have financial leverage covenants.

Cash Flow from Operating Cash Flow from Invest. Cash Flow from Financing Activities
Activities -R$491 milions +R$1,745 millions
+R$1,520 millions

▪ Debt's FX Variation: R$3.5 bi

▪ Derivatives: R$1.4 bi

INVESTMENTS (CAPEX)
Investments made in the quarter amounted to R$501 million, representing an increase of 19% from 1Q19, of
which R$139 million was allocated to growth, efficiency, and support; R$217 million to biological assets; and
R$146 million to leasing and others.

2
Derivatives relating to the operational result exposure in the next 12 months (hedge accounting), which impacts the item “Other
Comprehensive Income” under shareholders’ equity.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 19

 CAPEX - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q
Growth 49 7 600.0% 47 4.3%
Efficieny 10 11 (9.1%) 12 (16.7%)
Support 80 67 19.4% 70 14.3%
Biological Assets 217 186 16.7% 230 (5.7%)
Commercial Lease and Others 146 151 (3.3%) 187 (21.9%)
Total 501 422 18.7% 546 (8.2%)

The main projects in 1Q20 included:

• Market Demand:
(i) Projects to manufacture industrialized products to meet the demand of the domestic market,
highlighting investments in the new Seropédica plant (RJ);
(ii) Measures to increase the production of in natura items to meet the demand of the domestic and foreign
markets, highlighting investments in adjustments to Mineiros-GO and Buriti Alegre-GO units
(underway);
(iii) Project to increase egg production in Uberlândia (MG) to expand production volume.

• Efficiency:
(i) Projects connected with the 4.0 Industry Program in chicken slaughtering units;
(ii) Projects to reduce costs through greater operating efficiency (e.g. higher yield in the production
process);
(iii) Energy efficiency projects for production units.

• Support/IT:
(i) Projects to replace industrial assets;
(ii) Improvements in working conditions for employees in the production process;
(iii) Optimization projects and control of processes related to the commercial and supply chain areas;
(iv) IT projects to meet the Compliance and Corporate Governance requirements.
(v) Renewal of licenses necessary to maintain the Company’s activities concerning information technology.

• Support/Quality:
(i) Projects to improve control and quality processes in meatpacking units, factories, and farms.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 20

RELATIONSHIP WITH INDEPENDENT AUDITORS
Pursuant to CVM Instruction No. 381, dated January 14, 2003, the Company reports that its policy of
engagement of services unrelated to the external audit is based on principles that protect auditor
independence.

Pursuant to CVM Instruction No. 381/03, in the quarter ended March 31, 2020, KPMG Auditores Independentes
was not engaged in providing services unrelated to external audits.

Pursuant to CVM Instruction No. 480/09, the Company’s management states that at a meeting held on
05/08/2020 it discussed, reviewed, and agreed with the information included in the independent auditor’s
review of the 1Q20 interim financial information.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 21

 CONSOLIDATED INCOME STATEMENT
Financial Statement - R$ Million 1Q20 1Q19 Chg. % y/y 4Q19 Chg. % q/q

Net Operating Revenues 8,949 7,359 21.6% 9,290 (3.7%)

Cost of Sales (6,696) (5,842) 14.6% (6,918) (3.2%)

% of the NOR (74.8%) (79.4%) 4.6 p.p. (74.5%) (0.4) p.p.

Gross Profit 2,253 1,517 48.5% 2,373 (5.0%)

% of the NOR 25.2% 20.6% 4.6 p.p. 25.5% (0.4) p.p.

Operating Expenses (1,460) (1,282) 13.9% (1,560) (6.4%)

% of the NOR (16.3%) (17.4%) 1.1 p.p. (16.8%) 0.5 p.p.

Selling Expenses (1,317) (1,141) 15.5% (1,363) (3.4%)

% of the NOR (14.7%) (15.5%) 0.8 p.p. (14.7%) (0.0) p.p.

Fixed (816) (749) 9.0% (858) (4.9%)

Variable (501) (392) 27.8% (505) (0.8%)

General and Administrative Expenses (143) (141) 0.9% (197) (27.5%)

% of the NOR (1.6%) (1.9%) 0.3 p.p. (2.1%) 0.5 p.p.

Honorary of our Administrators (12) (6) 89.5% (26) (54.4%)

% of the NOR (0.1%) (0.1%) (0.0) p.p. (0.3%) 0.1 p.p.

General and Administrative (131) (135) (3.2%) (171) (23.4%)

% of the NOR (1.5%) (1.8%) 0.4 p.p. (1.8%) 0.4 p.p.

Operating Income 793 235 237.5% 813 (2.4%)

% of the NOR 8.9% 3.2% 5.7 p.p. 8.8% 0.1 p.p.

Other Operating Results (239) (77) n.m. (14) 1,564.9%

Equity Income - (0) (100.0%) - n.m.

EBIT 555 158 250.6% 799 (30.5%)

% of the NOR 6.2% 2.1% 4.0 p.p. 8.6% (2.4) p.p.

Net Financial Income (606) (448) 35.3% (541) 12.1%

Income before Taxes (52) (290) n.m. 257 (120.1%)

% of the NOR (0.6%) (3.9%) 3.4 p.p. 2.8% (3.3) p.p.

Income Tax and Social Contribution 14 177 (92.3%) 432 (96.9%)

% of Income before Taxes (26.2%) (60.9%) n.m. 168.0% n.m.

Consolidated Net Income (Loss) - Continued Operations (38) (113) (66.2%) 690 (105.5%)

% of the NOR (0.4%) (1.5%) 1.1 p.p. 7.4% (7.9) p.p.

Consolidated Net Income (Loss) - Total Consolidated (38) (1,012) n.m. 680 (105.6%)

% of the NOR (0.4%) (13.8%) n.m. 7.3% n.m.

EBITDA 1,126 723 55.8% 1,382 (18.5%)

% of the NOR 12.6% 9.8% 2.8 p.p. 14.9% (2.3) p.p.

Adjusted EBITDA 1,251 748 67.2% 1,413 (11.5%)

% of the NOR 14.0% 10.2% 3.8 p.p. 15.2% (1.2) p.p.

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 22

BALANCE SHEET

Balance Sheet - R$ Million 03.31.20 12.31.19

Assets

Current Assets

Cash and Cash Equivalents 7,961 4,238

Financial Investments 331 418

Accounts Receivable 3,023 3,091

Recoverable Taxes 679 626

Inventories 4,765 3,888

Biological Assets 1,703 1,603

Other Financial Assets 282 195

Other Receivables 352 366

Anticipated expenses 238 224

Restricted Cash 24 296

Current Assets held to sale 102 99

Total Current Assets 19,460 15,045

Non-Current Assets

Long-term assets 10,047 9,455

Cash Investments 382 307

Accounts and other Receivable 68 71

Judicial Deposits 576 576

Biological Assets 1,113 1,081

Recoverable Taxes 5,425 5,439

Deferred Taxes 2,395 1,846

Other Receivables 81 86

Other Financial Assets 7 50

Permanent Assets 17,798 17,200

Investments 17 15

Property, Plant and Equipment 12,376 12,277

Intangible 5,405 4,908

Total Non-Current Assets 27,845 26,655

Total Assets 47,304 41,701

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 23

 Balance Sheet - R$ Million 03.31.20 12.31.19

Liabilities and Equity

Current Liabilities

Loans and Financing 3,881 3,132

Suppliers 6,819 6,161

Supply Chain Risk 927 842

Payroll and Mandatory Social Charges 677 825

Taxes Payable 564 517

Other Financial Liabilities 1,533 154

Provisions 1,110 1,084

Employee Pension Plan 98 96

Other Liabilities 703 513

Total Current Liabilities 16,312 13,324

Non-Current Liabilities

Loans and Financing 19,124 15,488

Suppliers 2,203 2,067

Taxes and Social Charges Payable 186 190

Provision for Tax, Civil and Labor Contingencies 732 710

Deferred Taxes 108 85

Employee Pension Plan 630 594

Other Liabilities 1,213 1,094

Total Non-Current Liabilities 24,196 20,228

Total Liabilities 40,508 33,552

Shareholders’ Equity

Capital Stock 12,460 12,460

Capital Reserves 199 193

Other Related Results (2,103) (722)

Retained Profits (4,043) (3,997)

Treasury Shares (38) (38)

Non-Controling Shareholders 320 253

Total Shareholders’ Equity 6,796 8,148

Total Liabilities and Shareholders 47,304 41,701

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 24

Appendix

Asia 1Q19 2Q19 3Q19 4Q19 2019 1Q20

Volume (Thousand Tons) 113 140 135 138 526 135
Poultry (In Natura) 88 107 102 101 398 94
Pork and Others (In Natura) 20 27 28 32 107 35
Processed foods 4 5 6 5 20 5
Net Operating Revenues (R$, Million) 846 1,159 1,224 1,313 4,541 1,326
Average price (R$/Kg) 7.49 8.31 9.05 9.52 8.64 9.85
COGS (742) (901) (872) (919) (3,435) (887)
Gross Profit (R$, Million) 103 257 352 394 1,107 439
Gross Margin (%) 12.2% 22.2% 28.8% 30.0% 24.4% 33.1%
Adjusted EBITDA (R$, Million) 93 249 330 375 1,046 407
Adjusted EBITDA Margin (%) 11.0% 21.5% 26.9% 28.6% 23.0% 30.7%

Direct Export 1Q19 2Q19 3Q19 4Q19 2019 1Q20

Volume (Thousand Tons) 139 183 171 175 667 139
Poultry (In Natura) 110 145 134 131 520 111
Pork and Others (In Natura) 10 11 10 12 42 9
Processed foods 20 26 27 31 104 20
Net Operating Revenues (R$, Million) 907 1,252 1,223 1,155 4,537 988
Average price (R$/Kg) 6.53 6.86 7.17 6.61 6.80 7.09
COGS (795) (981) (952) (982) (3,709) (791)
Gross Profit (R$, Million) 112 272 272 173 829 197
Gross Margin (%) 12.3% 21.7% 22.2% 15.0% 18.3% 19.9%
Adjusted EBITDA (R$, Million) 36 172 166 72 445 107
Adjusted EBITDA Margin (%) 3.9% 13.7% 13.5% 6.2% 9.8% 10.9%

Halal DDP 1Q19 2Q19 3Q19 4Q19 2019 1Q20

Volume (Thousand Tons) 177 183 172 184 716 184
Poultry (In Natura) 143 149 140 153 586 154
Pork and Others (In Natura) 1 1 1 0 3 0
Processed foods 33 33 31 30 128 30
Net Operating Revenues (R$, Million) 1,442 1,574 1,349 1,456 5,821 1,702
Average price (R$/Kg) 8.13 8.62 7.84 7.90 8.13 9.27
COGS (993) (1,057) (1,008) (1,102) (4,160) (1,288)
Gross Profit (R$, Million) 449 517 341 354 1,661 413
Gross Margin (%) 31.1% 32.9% 25.3% 24.3% 28.5% 24.3%
Adjusted EBITDA (R$, Million) 244 273 183 124 824 165
Adjusted EBITDA Margin (%) 17.0% 17.4% 13.6% 8.5% 14.2% 9.7%

BRF S.A. | MANAGEMENT REPORT ON 1Q20 RESULTS 25