1Q12 Highlights. Minerva (BEEF3) Stock quote on 14-Mar-12: R$7.97. Market Cap: R$834.6 million. 104,719,799 Shares. Free Float 37.1% Conference Calls

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1 Barretos, May 15 th, 2012 Minerva S.A. (BOVESPA: BEEF3; Level 1 ADR: MRVSY; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the leaders in Latin America in the production and sale of fresh beef, live cattle and cattle byproducts, with operations also in the beef, pork and poultry processing segments, announces today its results for the first quarter of 2012 (1Q12). The financial and operating information herein is presented in BRGAAP and Brazilian real (R$), in accordance with International Financial Reporting Standards (IFRS). 1Q12 Highlights Minerva (BEEF3) Stock quote on 14-Mar-12: R$7.97 Market Cap: R$834.6 million 104,719,799 Shares Free Float 37.1% Conference Calls Portuguese Wednesday, May 16, :00 a.m. (Brasília) 9:00 a.m. (US EST) Phone: +55 (11) Code: Minerva Replay: +55 (11) Code: English Wesnesday, May 16, :00 p.m. (Brasília) 11:00 a.m. (US EST) Phone: +1 (412) Code: Minerva Replay: +1 (412) Code: IR Contact: Eduardo Puzziello Francisco Assis André Costa Phone: +55 (17) (11) ri@minerva.ind.br Minerva recorded operating cash flow of R$16.4 million in 1Q12. In addition, the company s cash conversion cycle was stable, despite the increased exposure to the international market. The performance of these indicators confirms the positive industry scenario and the right expansion strategy devised by Management. Gross Revenue in 1Q12 totaled R$1,005.9 million, 7.2% up on 1Q11. In the last twelve-month period, gross revenue was a record R$4.3 billion, up 15.8% year-over-year. Exports grew 28.4% over 1Q11, accounting for 65.6% of the company s total sales in the period, versus 54.9% in 1Q11. Additionally, Minerva s market share of fresh beef exports was 21.0% in 1Q12, up 1.6 p.p. from the same period in 1Q11. EBITDA totaled R$77.2 million in 1Q12 and R$364.2 million in the last twelvemonth period, 28.1% and 29.5% higher than in the same periods in the previous year, respectively. EBITDA margin stood at 8.2% in 1Q12, 1.4 p.p. up on 1Q11 and the highest first-quarter EBITDA margin in the past five years. Note that in Brazil, due to seasonal reasons, first quarters usually register the lowest beef demand. The consistent improvement in our results came from our austere financial policy, efficient working capital management, excellence in risk management, continued maturation of our investments and a more favorable scenario for the cattle cycle. Average cattle arroba prices in 1Q12 declined by 7.3% and 5.8% from 1Q11 and 4Q11, respectively, and the trend should continue in 2Q12. Therefore, we believe we have passed the inversion point of the cattle cycle curve with the beginning of a period of higher cattle supply in the industry during the coming years, which should benefit the operations of companies focused on South America. In the first quarter of 2012, we successfully concluded our US$450 million notes issue in the international market, maturing in 2022, whose proceeds will be used to settle short- and medium-term debt in order to reduce costs and lengthen our debt profile. In March, S&P upgraded the company s risk rating to B+ with a stable outlook, one notch above last rating.

2 Key Indicators Slaughtering (1,000 heads) % % 1, , % Sales Volume (1,000 tonnes) % % % Gross Revenues 1, , % % 4, , % Domestic Market % % 1, , % Export Market % % 2, , % Net Revenues , % % 4, , % EBITDA % % % EBITDA Margin 8.2% 10.7% -2.5 p.p. 6.8% 1.4 p.p. 9.0% 7.9% 1.1 p.p. Net Result (66.7) % % (39.6) % Net Margin -7.1% 1.4% -8.5 p.p. 1.6% -8.7 p.p. -0.9% 1.7% -2.6 p.p. Net Debt/EBITDA 3.83x 3.65x 0.18x 4.01x -0.18x 3.83x 4.01x -0.18x Message from Management Average cattle arroba prices in 2012, measured by the ESALQ/BM&FBovespa indicator, confirm the downward trend that began at the end of Between January and April 2012, average arroba prices fell 8.2% compared with the same period in 2011, confirming our perception of an inversion in the cattle cycle curve, with the beginning of a period of higher cattle supply that should continue in the coming years. In addition, the weakening of the real against the dollar, combined with the fact that Brazil s main competitor countries and blocs are undergoing difficulties in the sector, should further increase the presence of Brazilian beef in the international market. That is why, since the second half of 2011, we have been intensifying our focus on exports, using risk management tools to arrive at the best economically sound decision regarding the destination of our products. One of the results was that our market share of fresh beef exports (US$ FOB) in the first quarter of 2012 stood at 21.0%, 1.6 p.p. higher than in the same period in In this context, after the conclusion of the investments in expansion, Minerva started 2012 with excellent prospects with regard to its quarterly results. In 1Q12, apart from the 7.4% growth in net revenue compared with 1Q11, the Company recorded a significant increase in its operating margins (gross margin of 19.5% and EBITDA margin of 8.2%, versus 13.8% and 6.8%, respectively, in 1Q11) and had a stable cash conversion cycle compared with the previous quarters. Moreover, we once again recorded positive operating cash flow of R$16.4 million. The performance of these indicators confirms the positive industry scenario and the right expansion strategy adopted by Management. We believe this upward trend in the company s operating margins should continue in the following quarters in yearover-year comparisons, due to the factors mentioned above. In the first quarter, the Company also concluded the US$450 million international placement of 10-year notes, in two separated issues, one for US$350 million in February and the other, for US$100 million, in the end of March Investor demand for both issues was heavy, more than six times the initial outlay, confirming the market s confidence in Minerva s long-term fundamentals. The proceeds from the issue will be used to strengthen the Company's capital structure by amortizing debt maturing in the short and medium terms in order to reduce borrowing costs and lengthen the current debt profile. 2

3 We ended the quarter with only 12.4% the debt maturing in the short term. On March 31, 2012, Minerva had a cash balance of R$846.2 million, which is sufficient to settle its debt contracted until The company s current capital structure is adequate to weather any adverse macroeconomic conditions and will allow Minerva to benefit from industry distortions and take advantage of market opportunities. In terms of corporate governance, Minerva is constantly seeking to improve its management. At the last Annual Shareholders Meeting, the controlling shareholders and the majority of the representatives of minority shareholders requested the installation of the Fiscal Council and elected the new Board of Directors. We believe these changes will further contribute to improving the Company s corporate governance and transparency. Fernando Galletti de Queiroz, CEO 3

4 Industry Overview Cattle Supply As expected, the first quarter of 2012 was characterized by a reversal of the cattle cycle in Brazil. Cattle prices fell 5.8% from 4Q11 and 7.3% in nominal terms from 1Q11. Brazil s beef sector is going through a positive moment, as the country has been recovering its competitive advantage in production costs compared with global competitors, combined with the recent appreciation of the dollar, which further drives the competitive advantages of local producers in the international market. Figure 1 Finished Cattle Arroba Price Trends Q11 Source: CEPEA/ESALQ 2Q11 3Q11 4Q11 1Q12 The high slaughter volume in 1Q12 confirms the favorable moment the industry is passing through. Despite the 6.0% growth in the volume of finished cattle compared with 1Q11 (1.6% over 4Q11), the high cattle supply strongly sustained the downward trend in cattle prices. According to data from IMEA (Mato Grosso Institute of Agribusiness Economics), the highlight of the quarterr was the increase in the number of finished cows, which totaled 235,900 in January 2012, the highest since Figure 2 Cattle Slaughter Trends - Brazil (thousand head) 5,316 5,401 5,096 5,184 5,063 1Q11 2Q11 3Q11 4Q11 1Q12 Source: Ministry of Agriculture, Livestock and Supply (MAPA) on May 2, 2012 In Uruguay, slaughter volume dropped by 7.9% from 4Q11 but remained stable in relation to 1Q11. Cattle prices remain stable in that country and are slightly higher than in Brazil. In Paraguay, slaughter volume is returning ng to normal levels, after an isolated outbreak of the foot-and-mouth disease in the country in 4Q11. 4

5 Figure 3 Cattle Slaughter Trends - Uruguay (thousand head) Figure 4 Cattle Slaughter Trends - Paraguay (thousand head) Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Source: INAC Source: SENACSA Export Market In the export market, the highly competitive prices of Brazilian cattle (the main raw material for the industry) compared with those of its competitors was the highlight of the quarter. In relation to 1Q11, average international prices of Brazilian beef remained stable at historical levels for the Brazilian industry. Figure 5 - Finished cattle prices in Brazil versus international peers* /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ /03/ /05/ % 30% 20% 10% 0% -10% -20% -30% Brazil Competitors BRA/COMP Source: CEPEA/WBR/Minerva s Research team *competitors: 35% Arg 35% Uru 15% Aus and 15% USA The reduction in Brazilian beef exports to Iran was offset by the strong recovery in exports to the Commonwealth of Independent States (CIS), which seasonally steps up its imports in the first six months. Also worth noting is the sharp increase in Brazilian exports to Middle East, South America and North of Africa. In recent years, demand for beef from emerging countries has been increasing, mainly due to the higher purchasing power of the population - one of the main factors behind the increased consumption of prime protein - as well as weather and structural conditions that hinder the sustainable development of farming in these countries. 5

6 Figure 6 - Fresh beef revenue and exports Figure 7 - Destinations of Brazilian exports - 1Q12 5,199 5, ,059 1,055 4,878 5,172 1,088 4, Others 30.2% Russia 28.1% Q11 2Q11 3Q11 4Q111 1Q12 Export ('000 tonnes) Revenue (US$ million) Average Price (US$) Chile 8.1% Hong Kong 11.4% Venezuela 11.5% Egypt 10.7% Source: SECEX Charts 8 and 9 below show the monthly evolution of Brazilian beef export volumes and average prices Figure 8 - Fresh beef sales volume Figure 9 - Fresh beef average prices abr/11 mai/11 jun/11 jul/11 ago/11 set/11 out/11 nov/11 Volume ('000) dez/11 jan/12 fev/12 mar/12 abr/11 mai/11 jun/11 jul/11 ago/11 set/11 US$/Kg out/11 nov/11 R$/Kg dez/11 jan/12 fev/12 mar/12 Source: SECEX Domestic Market In Brazil, demand for beef is usually the lowest in the first quarter of the year, due to the weak calendar effect and the impact on consumers budgets of the heavy consumption in the previous quarter. Nevertheless, though the domestic scenario was conducive for growth in beef sales, thanks to the increase in income levels of the C and D income segments (increase in the monthly wage) and decreasing production costs, the sector demand and prices negotiated in 1Q12 were below estimates. Much of this effect was due to the sharp decline in poultry prices (down 10.7% from 4Q11) - given that poultry is considered a substitute for non-prime beef cuts, such as industrial cuts - due to the high inventory levels in the chicken industry in the beginning of the year. This effect had a greater impact in the first two months of the year. However, demand for beef cuts rebounded in April and early May, due to the currently lower chicken inventories. Yet, the outlook for domestic market remains positive, because (1) unemployment rate in Brazil, reported by the Brazilian Institute of Geography and Statistics (IBGE), remained stable compared with 4Q11, at the historical low of 5.5%; (2) the consumer confidence index remains above the historical average, according to the Getúlio Vargas Foundation (FGV); and (3) the monthly minimum wage increased by 14.13%. According to Dieese (Brazilian Inter Trade Union Department of Statistics and Socio-Economic Studies), the income of 48 million Brazilians is linked to the minimum monthly wage and this wage raise will inject R$47 in the Brazilian economy. Moreover, according to data from the Brazilian Ministry of Labor and Employment (MTE), 1.4 million jobs were created in Brazil between March 2011 and February

7 Minerva Analysis of Results Our average installed capacity utilization stood at 65.8% at the end of 1Q12. At the end of 2011, we concluded investments in the expansion of our units in Uruguay (from 900 head/day to 1,400 head/day) and in Campina Verde (from 700 head/day to 840 head/day). Since these units are in the maturation phase, the company s average utilization rate remained stable at 66%. However, it is worth noting that we achieved 70% capacity utilization in the last month of the quarter, as the chart shows. Slaughter Volume Figure 10 - Slaughter capacity utilization (%) 72.5% 76.7% 78.2% 69.7% 65.8% 58.9% 68.7% 69.9% 1Q11 2Q11 3Q11 4Q11 1Q12 Jan-12 Feb-12 Mar-12 Source: Minerva Consolidated Gross Revenue Gross Revenues 1, , % % 4, , % Beef Division % % 3, , % Others % % % Domestic Market % % 1, , % % Gross Revenues 34.4% 38.7% -4.3 p.p. 45.1% p.p. 40.7% 37.0% 3.7 p.p. Beef Division % % 1, , % Others % % % Export Market % % 2, , % % Gross Revenues 65.6% 61.3% 4.3 p.p. 54.9% 10.7 p.p. 59.3% 63.0% -3.7 p.p. Beef Division % % 2, , % Others % % % 7

8 In 1Q12, gross revenue totaled R$1,055.9 million, up 7.2% from 1Q11. Domestic saless and exports accounted for 34.4% and 65.6%, respectively, of total sales. Exports grew sharply from the first quarter of 2011, driven by the exchange rate and the heightened competitiveness of Brazilian cattle prices in the international market. In addition, live cattle exports are gradually recovering, which also positively impacted exports by the Others Division. Figures 11 and 12 provide the breakdown of sales. Figure 11 - Breakdown of consolidated gross revenue - 1Q12 (%) Figure 12 - Breakdown of consolidated gross revenue - 1Q11 (%) Others DM 6.9% Beef EM 51.5% Others DM 7.3% Beef EM 47.3% Beef DM 27.4% Others EM 14.2% Beef DM 37.8% Others EM 7.6% In addition to sales growth, Minerva s market share of fresh beef exports (US$ FOB) stood at 21.0% in 1Q12, up 1.6 p.p. from the same period in Figure 13 - Market share trends (based on revenue in US$ million) % % Q11 1Q12 Brasil Minerva Share Minerva (%) Source: Secex Beef Division The current phase of the Brazilian cattle cycle, combined with political stability, constant improvements in productivity, better economic and sanitary conditions and the weakening real, raised the competitive advantages of Brazilian beef in the international market. The company s investments and efforts followed a strategic plan prepared five years ago, which already anticipated this scenario, by which South America would consolidate its position as a competitive platform for supplying beef to the international market. In this context, the Beef Division, whichh includes fresh beef, processed beef and beef byproducts, recorded gross revenue similar to in 1Q11. Despite the weak performance of the domestic market, gross revenue from exports increased 16.5% year on year, thanks to the weakening real and the increased competitiveness of Brazilian cattle prices compared to those of international peers. 8

9 Below is a complete detailing of the beef division: Fresh Beef EM % % 1, , % Processed Beef EM % % % Others EM % % % Sub-Total EM % % 2, , % Fresh Beef DM % % 1, , % Processed Beef DM % % % Others DM % % % Sub-Total DM % % 1, , % Total % % 3, , % Volume ( 000 tonnes) 1Q12 4Q11 Var.% 1Q11 Var.% LTM 1Q12 LTM 1Q11 Var.% Fresh Beef EM % % % Processed Beef EM % % % Others EM % % % Sub-Total EM % % % Fresh Beef DM % % % Processed Beef DM % % % Others DM % % % Sub-Total DM % % % Total % % % Average Price EM (US$/kg) 1Q12 4Q11 Var.% 1Q11 Var.% LTM 1Q12 LTM 1Q11 Var.% Fresh Beef EM % % % Processed Beef EM % % % Others EM % % Total % % % Average FX Rate % % % (Source:BACEN) Average Price EM (R$/kg) 1Q12 4Q11 Var.% 1Q11 Var.% LTM 1Q12 LTM 1Q11 Var.% Fresh Beef EM % % % Processed Beef EM % % % Others EM % % % Total % % % 20.5% Average Price DM (R$/kg) 1Q12 4Q11 Var.% 1Q11 Var.% LTM 1Q12 LTM 1Q11 Var.% Fresh Beef DM % % % Processed Beef DM % % % Others DM % % % Total % % % EM - Export Market, DM Domestic Market 9

10 Others Division Gross revenue from this division totaled R$212.6 million in the first quarter of 2012, R$142.8 million of which came from exports and R$69.7 million from domestic sales. One notable development was the recovery in live cattle sales, which increased by 45.5% over the same period a year ago. The performance of the leather division remains solid, marked by the 57.5% upturn in gross revenue from exports. In 3Q11, we changed our strategy and focused our efforts on two different niches: the wholesale segment in the domestic market and the automotive industry in the export market. We rationalized our operations and transformed many fixed costs into variable costs, thus obtaining greater operational flexibility and reducing idle capacity. Moreover, in order to improve risk management in the division, we created the Hide Desk - a weekly meeting with a similar objective to that of the Beef Desk, i.e. to mitigate the financial and operational impacts from our exposure to different risk factors. The weakening real also helped rebuild margins in the leather segment, making Brazilian leather more competitive in the international market. Resales of third-party products continue to return exceptional results, growing by over 70% year on year, and optimizing our distribution network. This performance was driven by the adoption of the one-stop-shop concept, since we already offer our complete protein portfolio, especially frozen fish, poultry, pork and mutton and frozen vegetables at all our distribution centers. MDF also continues to set production and revenue records month after month. All this growth is driven by the change in Brazilians consumption standards in recent years more jobs result in higher income and, consequently, higher consumption. As a result, a higher number of people go out to eat, which significantly increases the number of restaurant and fast-food chains. In this context, MDF, whose core business is the Food Service segment, is well positioned to reap the benefits of this strong growth in domestic sales. Consolidated Net Revenue Net revenue totaled R$944.0 million in 1Q12, 7.2% up on 1Q11, sustained by an exchange rate that favors fresh beef exports and the solid performance of live cattle operations. Gross Revenues 1, , % % 4, , % Sales Taxes and Deductions (61.8) (73.5) -15.9% (58.2) 6.2% (283.8) (188.9) 50.2% Net Revenues , % % 4, , % % Gross Revenues 93.8% 93.7% 0.1 p.p. 93.8% 0.0 p.p. 93.4% 94.9% -1.5 p.p. 10

11 Cost of Goods Sold (COGS) and Gross Profit In 1Q12, COGS amounted to R$759.7 million, while gross margin stood at 19.5%, 5.7 p.p. up on 1Q11, driven by the exchange rate that benefited exports, and the steep decline in raw material prices (cattle prices in 1Q12 were 7.3% lower than in 1Q11), due to the inversion in the cattle cycle. Net Revenues , % % 4, , % COGS (759.7) (911.4) -16.6% (758.6) 0.1% (3,377.6) (2,897.3) 16.6% % Net Revenues 80.5% 83.4% -2.9 p.p. 86.2% -5.7 p.p. 83.6% 81.7% 1.9 p.p. Gross Profit % % % Gross Margin 19.5% 16.6% 2.9 p.p. 13.8% 5.7 p.p. 16.4% 18.3% -1.9 p.p. Selling, General and Administrative (SG&A) Expenses Selling expenses totaled R$90.8 million in 1Q12, 48.1% up on 1Q11, due to the rebound in live cattle exports, which entail high logistics costs. As a percentage of net revenue, selling expenses came to 9.6%, 2.6 p.p. up on 1Q11. Administrative expenses increased by 14.3% over 1Q11, but remained stable as a percentage of net revenue. Selling Expenses (90.8) (59.4) 52.9% (61.3) 48.1% (266.4) (342.3) -22.2% % Net Revenues 9.6% 5.4% 4.2 p.p. 7.0% 2.6 p.p. 6.6% 9.7% -3.1 p.p. G&A Expenses (28.0) (22.7) 23.3% (24.5) 14.3% (114.0) (77.6) 47.0% % Net Revenues 3.0% 2.1% 0.9 p.p. 2.8% 0.2 p.p. 2.8% 2.2% 0.6 p.p. 11

12 EBITDA We ended 1Q12 with EBITDA of R$77.2 million, 28.1% up from 1Q11. EBITDA margin increased by 1.4 p.p. over 1Q11 to reach 8.2% in the quarter. Non-Controlling Interest (66.7) % % (39.6) % (+) Income and Deferred Taxes (6.3) (10.0) -37.8% (37.4) -83.2% (103.0) (80.6) 27.7% (+) Net Financial Result % % % (+) Depreciation and Amortization % % % (+) Non-Recurring Itens - (5.7) % EBITDA % % % EBITDA Margin 8.2% 10.7% -2.5 p.p. 6.8% 1.4 p.p. 9.0% 7.9% 1.1 p.p. Financial Result In 1Q12, the net financial result, including foreign exchange variation with no cash effect on our debt, was a loss of R$138.4 million. The table below details the financial result in the first quarter of 2012: Financial Expenses (79.3) (67.3) 17.8% (61.6) 28.7% (239.1) (194.4) 23.0% Financial Income % % % FX Variation (11.6) % % (123.3) % Others (*) (61.9) (67.5) -8.3% (33.1) 87.0% (142.5) (115.4) 23.5% Net Financial Result (138.4) (104.7) 32.2% (66.8) 107.2% (446.4) (244.1) 82.8% % Net Revenues -14.6% -9.6% -5.0 p.p. -7.6% -7.0 p.p % -6.9% -4.1 p.p. (*) Includes FX Hedge, Cattle Hedge, Financial Discounts and Fees and Commissions (*) Others expenses (in R$ millions) 1Q12 Expenses with FX and Commodities Hedge (33.8) Financial Discounts, Taxes, Fees, Commissions and Other Financial Expenses (28.1) Total (61.9) To improve its capital structure, in 1Q12 Minerva concluded the placement of US$450 million through 10-year notes in the international market. However, despite the improvement in our capital structure, this issue resulted in nonrecurring financial expenses (in some cases non-cash expenses) that impacted our quarterly results and consequently our bottom line. 12

13 Net Income Net income in 1Q12 was lower than both 4Q11 and 1Q11, due to the non-recurring financial expenses. R$ Million 1Q12 Net (Loss) Income (66.7) Net Margin (%) -7.1% 4Q11 Var.% 1Q11 Var.% LTM 1Q12 LTM 1Q11 Var.% % (39.6) % 1.4% -8.5 p.p. 1.7% -8.8 p.p. -1.0% 1.7% -2.7 p.p. Capital Structure Minerva ended 1Q12 with cash and cash equivalents of R$846.3 million. After the issue of the 10-year notes issue in the quarter, the company s balance sheet presents a significantly longer debt profile, as the figure shows. Note that the US$100 million re-tap issue was carried out at the end of the quarter and hence had not impacted our short- and medium-term debt as on March 31, Of the Company s total debt, 75% is denominated in U.S. dollar, similar to our domestic sales/ export mix. Figure 14 - Debt amortization Cash 2Q12 3Q12 4Q12 1Q Minerva ended the quarter with a net debt/ebitda ratio of 3.83x, influenced by the payment of R$24 million related to the third installment of the PULSA acquisition and the payment of approximately R$ $30 million as dividends and interest on equity relating to fiscal year We plan to speed up this deleveraging process in the coming quarters, backed by the maturation of the investments made in recent years, the impact of the positive cattle cycle on the company s costs and the excellence in risk management. 13

14 R$ Million 1Q12 4Q11 Var. % 1Q11 Var. % Short Term Debt % % % Short Term Debt 12.4% 26.6% -14.2% 17.0% -4.6% Local Currency % % Foreign Currency % % Long Term Debt 1, , % 1, % % Long Term Debt 87.6% 73.4% 14.2% 83.0% 4.6% Local Currency % % Foreign Currency 1, % % Total Debt 2, , % 1, % Local Currency % % Foreign Currency 1, , % % (Cash and Cash Equivalents) (846.2) (746.4) 13.4% (566.1) 49.5% Net Debt* 1, , % 1, % Net Debt/ EBITDA 3.83x 3.65x 0.18x 4.01x -0.18x (*) Adjusted to treasury stock and subordinated FDIC quotas 14

15 LOCAL CURRENCY (R$ thousand) FOREIGN CURRENCY (R$ thousand) 1Q12 4Q11 1Q12 4Q11 2Q12 33, ,685 2Q12 59,904 24,753 3Q12 35,244 30,707 3Q12 59, ,596 4Q12 62,151 48,693 4Q12 1,592 95,752 1Q13 11,808 21,114 1Q13 18,802 79, , , ,607 57, ,799 67, ,281 5, , , , ,207 29, ,641 15, ,134 61, ,060 9, ,826 6, , , ,826 6, ,667 6, ,924 2, ,657 - Total 567, ,549 Total 1,710,053 1,136,491 Investments Investments totaled R$24.8 million in 1Q12, the bulk of which was allocated to the maintenance of our operations. Cash Flow Investimentos In the first quarter of 2012, the company recorded operating cash flow of R$16.4 million in the first quarter, which is seasonally considered the quarter with the lower demand of our products. R$ Million 1Q12 Net Income (Loss) (66.7) Net Income Adjustments 75.0 Change in Working Capital Requirement 8.1 Cash Flow from Operating Activities

16 Tax Credit XXXXXXXXX. At the end of 2011, the São Paulo state government issued three decrees to speed up the monetization of ICMS (VAT tax on goods and services) credits for the sector. One of them created a special system to use the accrued ICMS credits, which speedier monetization of such credits. This fact was evident in Minerva s balance sheet in the first two months of 2012, when we effectively managed to monetize a few credit installments. In March, however, due to the higher share of exports in net revenue, monetization of credits was lower than in the first two months of 2012, implying an accrual of ICMS credits in an amount approximately equal to the value monetized in January and February. For the rest of the year, though, we are confident of stepping up the pace of monetization. For example, in April we managed to monetize more credits than we accumulated. About Minerva S.A XXXXXXXXX. Minerva S.A. is one of the leading producers and sellers of beef, leather, live cattle exports and cattle byproducts in South America, and one of Brazil s three largest exporters in the industry in terms of gross sales revenue, exporting to over 100 countries, with operations also in the beef, pork and poultry processing segments. It has a daily slaughter capacity of 10,480 heads of cattle and daily beef deboning capacity equivalent to 12,911 heads. With a presence in the states of São Paulo, Rondônia, Goiás, Tocantins, Mato Grosso do Sul and Minas Gerais, as well as in Paraguay and Uruguay, Minerva operates ten slaughter and deboning plants, one that process the three proteins (MDF) and eleven distribution centers. In the 12 months ended March 31, 2012, the Company recorded net sales revenue of R$4.0 billion, for growth of 14.0% on the same period a year earlier. Relationship with Auditors In accordance with CVM Instruction 381/03, we inform that our auditors did not provide services other than those related to external audit in fiscal year 2010 and the quarter ended December 31, Statement from Management In compliance with CVM Instructions, Management declares that it has discussed, revised and agreed with the individual and consolidated accounting information related to the quarter ended December 31, 2011, and the opinions expressed in the independent auditors review report, hereby authorizing their disclosure. 16

17 ANNEX 1 - CONSOLIDATED INCOME STATEMENT 1Q12 4Q11 1Q11 Export Sales 659, , ,713 Domestic Sales 346, , ,433 Gross Sales Revenues 1,005,887 1,166, ,606 Deductions and Discounts (61,823) (73,501) (58,223) Net Sales Revenues 944,064 1,092, ,383 Cost of Goods Sold (759,744) (911,385) (758,636) Gross Profit 184, , ,747 Selling Expenses (90,726) (59,399) (61,321) General and Administrative Expenses (27,984) (22,666) (24,480) Others Operating Revenues (Expenses) (233) 10,682 8,029 Financial Expenses (141,145) (134,758) (94,947) Interest on Equity - (20,560) - Income Expenses 14,335 25,317 17,999 Exchange Rate (11,608) 4,744 10,153 Operating Revenue (Expenses) (257,361) (196,640) (66,795) Operating Income (73,041) (15,459) (22,820) Profit Before Income Tax (73,041) (15,459) (22,820) Corporate Taxation - Current (829) (1,112) Corporate Taxation - Deferred 7,131 11,083 37,424 Net Income before Non-Controling Interest and Reversal of Interest on Equity (66,739) (5,488) 14,604 Reversal of Interest on Equity - 20,560 - Net Income (66,739) 15,075 14,604 Net Income Attributed to Controlling Shareholders (65,743) 14,821 13,271 Net Income Attributed to Non-Controlling Shareholders (996) 251 1,333 17

18 ANNEX 2 CONSOLIDATED BALANCE SHEET Current Assets Assets 1Q12 4Q11 Cash and Cash Equivalents 846, ,382 Clients 130, ,402 Inventories 200, ,423 Taxes Recoverable 455, ,832 Others Receivables 99, ,648 Biological Assets 36,895 47,680 Total Current Assets 1,768,704 1,703,367 Non-Current Assets Related Parties 7, Taxes Recoverable 108, ,897 Deferred Taxes 235, ,500 Other Credits 33,211 16,640 Judicial Deposits 10,082 9,943 Long-Term Assets 395, ,577 Fixed Assets 1,127,838 1,114,584 Intangibles 340, ,663 Fixed Assets 1,468,132 1,454,247 Total Non-Current Assets 1,863,263 1,795,824 Total Assets 3,631,967 3,499,191 Current Liabilities Liabilities 1Q12 4Q11 Loans and Financing 282, ,568 Trade Accounts Payable to Suppliers 264, ,117 Payroll and Tax Payable 55,606 54,463 Others Liabilities 68,564 73,744 Total Current Liabilities 671, ,892 Non-Current Liabilities Long Term Liabilities Loans and Financing 1,995,122 1,494,475 Other Liabilities 29,759 30,893 Payroll and Tax Payable ,437 Provision for Contingencies 19,285 19,286 Related Parties 71,003 66,606 Deferred Liabilities Tax 86,862 64,136 Total Non-Current Liabilities 2,246,389 1,721,833 Capital Stock 257, ,251 Tresury Stock (20,883) (7,482) Capital Reserves 368, ,838 Revaluation Reserves 75,085 75,724 Profits Reserve 48,366 48,366 Balance Sheet Evaluation Adjustments (25,690) - Retained Earnings (64,776) - Shareholders Equity 638, ,758 Non-Controling Interest 75,608 76,708 Total Shareholders Equity 714, ,466 Total Liabilities and Shareholders Equity 3,631,967 3,499,191 18

19 ANNEX 3 - CONSOLIDATED CASH FLOW STATEMENT Financial Calculation Cash Flow 1Q12 1Q11 Net Income (Loss) (66,739) 14,604 Adjustments to Reconcile Net Income (Loss) and Cash from Operating activities: Depreciation and Amortization 11,812 11,892 Net Income Attributed to Non-Controlling Shareholders 996 (1,333) Value Biological Assets 3,501 (367) Increase in Deferred Taxes Temporary Differences (7,131) (36,496) Net Realization of Revaluation Reserve Financial Charges 75,018 44,663 Foreign Exchange Variation Not Realized (10,129) (33,807) Contingency Allowances (1) (1,932) Receivable from Customers 74,973 (11,851) Inventories (31,852) 16,721 Biological Assets 7,284 3,392 Taxes Recoverable (22,924) (34,791) Accounts receivable from Related Parties (2,489) 32,129 Deposits in Court (139) (1,728) Suppliers (46,646) (23,173) Labor and Tax Obligations (936) 4,938 Accounts Payable 30,826 (13,767) Cash Flow from Operating Activies 16,392 (30,906) Cash Flow from Investment Activities Acquisition of Controlling Interest minus Cash - (12,055) Payment instalment PULSA (23,717) Acquisition of Intangible (846) (61,693) Acquisition of Fixed Assets (24,851) (34,832) Cash Applied in Investment Activities (49,414) (108,580) Net Cash from Financing Activities Loans and Financings 799, ,954 Loans and Financings Settled (622,700) (68,960) Variation in Minoritary Equity (1,100) - Interest on Equity (17,680) - Dividends (11,762) - Treasury Stock (13,401) (12,944) Net Cash from Financing Activities 132, ,053 Net Cash / Cash Equivalent Decrease 99,894 (33,433) Cash and Cash Equivalents Beginning of Period 746, ,464 End of Period 846, ,031 Net Cash / Cash Equivalent Decrease 99,894 (33,433) 19