Results Presentation 2018 and 4Q18 1 The statements contained - PowerPoint PPT Presentation

Results Presentation 2018 and 4Q18 1

The statements contained in this document related to the management's views on the business of M. Dias Branco are merely trends and, as such, are based exclusively on management's perspective on the continuity of past and present actions, based on facts that have already occurred. These trends do not constitute projections or estimates, and may be substantially altered by changes in market conditions, the performance of the Brazilian economy, the sector and international markets. 2

On May 16, 2018, the Company concluded the acquisition of 100% of Indústria de Alimentos Piraquê S.A. (“ Piraquê ”) . Piraquê’s results for the period between May 17 and September 30, 2018, can be found in the consolidated information of this document. This presentation includes some information excluding Piraquê’s results (“without Piraquê ”) . 3

Highlights of 2018 4

2018 Releases Innovation in Cracker Innovation in Cookies Synergy with Piraquê brand Product for export 5

Acquisition of Piraquê in May / 2018 • R$ 1.5 billion | 16.2x EV / EBITDA • Items of high added value • Leader in the state of Rio de Janeiro • + 7.3% of net revenue for M. Dias Branco • Seventh brand of the group with annual sales in excess of R$ 500 million • Integration in progress • Synergies Margin Adjusted EBITDA 2017: 14.0% Margin Adjusted EBITDA 2018: 15.3% 6

Marketing investments consistent with strategy and short- term results Buy one and get items for free Points of sale Digital Influencer | Digital marketing 7

Accelerated growth in exports 2016 2017 2018 R$ 28 millions R$ 35 millions R$ 46 millions 19 countries 25 countries 37 countries 8

Sustainability 1st inventory of greenhouse gas emissions (GHG) Lower water consumption (m³ / ton SDG produced): -14.3% in 4Q18 vs. 4Q17 and -8.5% 2018 vs. 2017. 9

Culture, people and management Evolution of Organizational Climate ICO * of 71.3 points in 2018 +5.6% vs. 2013 10 * Organizational Climate Index

Results 4Q18 and 2018 11

Net Revenue (with Piraquê) +11.3% 2018 vs. 2017 Variation of Net Revenue - 2018 vs. 2017 (R$ Million) | M.Dias + Piraquê Price Effect Volume Effect +5.3% -8.2% -4.3% +9.0% +0.9% +13.0% +2.0% +6.0% +1.9% +10.1% 6,025 123 5,415 292 8 10 7 8. 000 154 2 75 103 14 7. 000 6. 000 5. 000 4. 000 3. 000 2. 000 1. 000 - Net revenue Cookies and Pasta Wheat Flour Margarine Others Cookies and Pasta Wheat Flour Margarine Others Net revenue 2017 Crackers and Bran and Products Crackers and Bran and Products 2018 Vegetables Vegetables Shortening Shortening 12

Net Revenue (without Piraquê) +3.4% 2018 vs. 2017 Variation of Net Revenue - 2018 vs. 2017 (R$ Million) | M. Dias Volume Effect Price Effect -8.1% -4.4% +1.2% +4.4% 0.0% +5.7% +2.5% +13.0% +1.8% -0.3% 5,597 5,415 1 28 8 74 14 2 128 107 6 8 5. 500 5. 000 4. 500 4. 000 3. 500 3. 000 2. 500 2. 000 1. 500 1. 000 Net revenue Cookies and Pasta Wheat Flour Margarine Others Cookies and Pasta Wheat Flour Margarine Others Net revenue 2017 Crackers and Bran and Products Crackers and Bran and Products 2018 Vegetables Vegetables Shortening Shortening 13

Net Revenue (with Piraquê) +15.8% 4Q18 vs. 4Q17 Variation of Net Revenue - 4Q18 vs. 4Q17 (R$ Million) | M.Dias + Piraquê Volume Effect Price Effect +1.7% +10.0% -2.3% +3.4% -19.2% +1.9% +16.2% +11.0% +32.4% +2.9% 1,580 1,364 67 1 1. 800 2 31 1. 700 117 12 28 44 1 1. 600 2 1. 500 1. 400 1. 300 1. 200 1. 100 1. 000 Net revenue Cookies and Pasta Wheat Flour Margarine Others Cookies and Pasta Wheat Flour Margarine Others Net revenue 4Q17 Crackers and Bran and Products Crackers and Bran and Products 4Q18 Vegetables Vegetables Shortening Shortening 14

Net Revenue (without Piraquê) +3.5% 4Q18 vs. 4Q17 Variation of Net Revenue – 4Q18 vs. 4Q17 (R$ Million) | M.Dias Price Effect Volume Effect +4.2% +9.7% +32.4% +2.6% +7.1% -4.5% +1.4% -6.7% +0.2% -19.0% 1,412 1. 800 1,364 1. 700 1. 600 2 28 59 1 49 0 44 51 1. 500 1 1 1. 400 1. 300 1. 200 1. 100 1. 000 Net revenue Cookies and Pasta Wheat Flour Margarine and Others Products Cookies and Pasta Wheat Flour Margarine and Others Products Net revenue 4Q17 Crackers and Bran Vegetables Crackers and Bran Vegetables 4Q18 Shortening Shortening 15

Expansion of market share in cookies and crackers and pastas M. Dias Branco + Piraquê Product Line 2018 vs. 2017 4Q18 vs. 4Q17 Share volume: Share volume: 34.0% (+1.5 p.p vs. 2017) 35.6% (+3.7 p.p vs. 4Q17) Share Value: Share Valor: s 28.2% (+3.8 p.p vs. 2017) 30.5% (+6.5 p.p vs. 4Q17) Share volume: Share volume: 36.0% (+3.6 p.p vs. 2017) 37.9% (+4.4 p.p vs. 4Q17) Share Value: Share Valor: 1 31.7% (+3.1 p.p vs. 2017) 33.4% (-0.1p.p vs 4Q17) 16 Note: NIELSEN data for the period from January to December 2018, covering Piraquê de mai-dez / 18 The variations presented refer to the periods Jan-Dec/2018 vs. 2017 and Nov-Dec/2018 vs. 2017.

Production Capacity (Thousand Ton) and Usage Level (%) 3,663 3,372 000 4. 0% 10 20 0% 3. 000 % 95 18 0% 500 3. 2. 500 % 90 16 0% % 85 3. 000 2. 000 % 80 14 0% 79% 2. 500 % 75 933 1. 500 875 12 0% 70 % 72% 2. 000 1. 000 % 65 10 0% 75% 67% % 60 500 1. 500 80 % % 55 000 1. % 50 % 60 - 4Q17 4Q18 2017 2018 17

Verticalization of Wheat Flour and Vegetable Shortening Wheat Flour Vegetable Shortening 2017 2018 2017 2018 82.6% 98.7% 92.1% 85.0% 18

COGS (% Net Revenue) impacted by the increase in the cost of wheat and the devaluation of the Real 66.5% 62.4% 69.6% 64.8% 8.5% 9.0% 7.3% 7.8% 9.0% 9.1% 8.6% 9.3% 23.4% 24.0% 23.5% 23.1% 27.5% 25.6% 24.6% 23.0% 4Q17 4Q18 2017 2018 19

Reduction of operating expenses (M. Dias Branco + Piraquê), even with negative impact of non-recurring items 2018 vs. 2017 Evolution Operating expenses (% Net Revenue) | M.Dias + Piraquê | 2018 vs. 2017 26.0% 25.6% 1.6% 0.2% 0.5% 0.8% 0.1% Operating Other expenses Freights Salaries and Non-recurring Other operating Operacional 2 1 Expenses 2017 with marketing, benefits expenses expenses Expenses 2018 sales and logistics. ¹Note: Non-recurring expenses associated with Piraquê (R$ 6.4 million), Independent Committee (R$ 19.5 million) and expenses incurred by Piraquê, with consultancy and restructuring (R$ 4.9 million). ²Note: 20 Regarding administrative expenses, administration fees, tax expenses and other operating expenses, without non-recurring expenses .

Reduction of operating expenses (M. Dias Branco + Piraquê), even with negative impact of non-recurring items 4Q18 vs. 4Q17 Evolution Operating expenses (% Net Revenue) | M.Dias + Piraquê | 4Q18 vs. 4Q17 27.5% 26.6% 0.7% 2.1% 1.0% 0.9% Operating Other expenses Salaries and benefits Non-recurring Other operating Operacional 1 2 Expenses 4Q17 with marketing, expenses expenses Expenses 4Q18 sales and logistics. ¹ Note: Non-recurring expenses associated with Piraquê (R$ 2.0 million), Independent Committee (R$ 11.4 million) and expenses incurred by Piraquê with consultancy and restructuring (R$ 0.1 million). ² Note: Regarding 21 administrative expenses, administration fees, tax expenses and other operating expenses, without non-recurring expenses.

EBITDA (R$ Million) and EBITDA Margin (% Net Revenue) Reduction of expenses, contributing to the positive result 966.4 933.0 10 00, 0 % 80 90 0, 0 % 70 80 0 0, % 60 70, 0 50 % 60 0, 0 50 0, 0 40 % -3.5% 40 0 0, 30 % 17.8% 15.5% 30 0, 0 2018 vs. 2017 % 20 20 0 0, 10 % 10 0, 0 0, 0 0% 2017 2018 EBITDA EBITDA Margin 50 % , 0 50 45 % , 0 0 45 40 % , 0 40 275.8 283.8 35 % , 0 35 0 30 , 0 % 30 193.3 183.5 189.9 -2.3% 25 % , 0 0 25 20 , 0 % 20 15 , 0 % 15 0 18.6% 16.3% 4Q18 vs. 4Q17 15.1% 14.2% 10 % , 0 10 12.0% 0% 5, 50 0, 0% 0 4Q17 1Q18 2Q18 3Q18 4Q18 22 EBITDA EBITDA Margin

Net Income (R$ Million) and Net Margin (% Net Revenue) 844,3 % 60 90 0 723,5 80 0 % 50 70 % 40 60 0 50 0 % 30 -14.3% 15.6% 40 0 12.0% % 20 30 0 2018 vs. 2017 20 0 % 10 10 0 0% 0 2017 2018 Net Profit Net Margin 80 % 50 0 0 45 70 % 40 0 60 % 234.3 0 35 209.7 201.9 50 % 30 0 -30.8% 139.7 139.8 40 % 25 0 0 20 30 % 13.4% 14.8% 4Q18 vs. 4Q17 14.1% 0 15 11.5% 8.9% 20 % 10 10 % 50 0% 0 4Q17 1Q18 2Q18 3Q18 4Q18 23 Net Profit Net Margin

Investments of R$ 301.1 million in 2018 2018 vs. 2017 -8.6% Ongoing construction of the new milling unit in Bento Gonçalves (RS); 329.5 301.1 50 % 0 35 45 % 30 0 Reuse of effluents in the Fats and Margarines 40 % 25 0 35 % unit in Fortaleza (CE); 30 % 0 20 25 % 6,1% 15 0 20 % 5,0% 15 % 0 10 10 % Implantation of the flour line at the Eusébio 50 5% 0% 0 plant (CE); 2017 2018 Capex (Million) Capex/Net Revenue 24