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102-14

MESSAGE FROM THE BOARD OF DIRECTORS

2019 solidified the position of Minerva Foods S.A. in South America as a major player in the global beef market. Once again, we are leading this movement, accounting for approximately 20% of all exports in the region. Excellence in operational, commercial, and financial management has given Minerva Foods important competitive advantages in the market, which has proven to be decisive in taking advantage of the excellent opportunities that have arisen over the period.

The high demand from China, driven by the outbreak of African swine fever which has eliminated almost 50% of the local pig population, was a key factor for the market in 2019, particularly in the last quarter. At Minerva Foods, 46% of the export revenue obtained by the subsidiary Athena Foods had Asia as its destination, an increase of ten percentage points in annual comparison. For the Brazil Division, Asia represented 39% of export revenues in the last 12 months, up 12 percentage points compared to 2018.

Ibar Vilela de Queiroz

Chairman of the Board of Directors 102-23

In addition, new markets have opened to countries in which we operate, beginning with Brazil, ten plants have been authorized to export to Indonesia, five of which we own: in Araguaína (TO), José Bonifácio (SP), Mirassol d’Oeste (MT), Palmeiras de Goiás (GO) and Rolim de Moura (RO). Argentina received certification to export to the United States, with Uruguay now exporting to the markets of Japan and Saudi Arabia. In addition, Paraguay and Colombia were granted certification to export to Saudi Arabia.

This development signals the solidification of South America as a major global supplier of beef, which has benefited and positioned Minerva Foods as a unique player in the global market. The mitigation of sanitary and trade barriers through operational excellence and geographic diversification, a risk management model that seeks to reduce volatility in the returns, combined with the pillars of sustainability (Environmental, Social and Governance), a benchmark for the industry, these are all fundamental aspects that have set us apart.

Standing before this promising horizon, Minerva Foods’ corporate strategy for the coming years is to increasingly expand its competitive advantages by investing in sustainability and innovation, market intelligence and risk management, improving the business model and reducing operational and financial risk, integrating operations in search of synergies and greater efficiency in order to amplify opportunities in high growth markets.