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REPORT 2015

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Page 1: Sustainability Report of 2015

SUST

AINA

BILI

TY R

EPOR

T 20

15

REPORT 2015

Page 2: Sustainability Report of 2015

Headquarters: Av. Antônio Manso Bernardes, s/n°, Rotatória Família Vilela de Queiroz - Barretos - SP – Zip code 14781-545 - Phone: +55 (17) 3321-3355 Street Leopoldo Couto de Magalhães Júnior, 758 - conj. 82 - Itaim Bibi - São Paulo - SP - Zip code 04542-000 - Phone: +55 (11) 3074-2444

minervafoods.com

SUST

AIN

ABIL

ITY

REP

OR

T 20

15

REPORT 2015

Page 3: Sustainability Report of 2015

GENERAL COORDINATION: Minerva S.A.

GENERAL COUNSEL: Flávia Ribeiro

HUMAN RESOURCES AND COMMUNICATIONS DEPARTMENT: Odoardo Carsughi, Denise Rocha and Larissa Matos

SUSTAINABILITY DIVISION: Taciano Custódio, Wemerson Lopes and Camila Ito

EDITORIAL PRODUCTION: TheMediaGroup and KMZ Conteúdo

TRANSLATION: Gama Traduções

PHOTOS: Claudio Lacerda

DESIGN: F&Q Brasil

CREATIVE DIRECTOR: Paschoal Fabra Neto, Emília Ogata and Oadir Gualtieri

ACCOUNT MANAGERS: Fernando Quinteiro and Raquel Álvares Coelho

DESIGNERS: Cristian de Felice, Everaldo Figueira and Lucila Issa

EDITOR: TheMediaGroup

PRODUCTION: Anderson Lima

AUDITOR: BDO RCS Auditores Independentes

9. CREDITS

INTEGRITY IN GOVERNANCE PRACTICES; COMMITMENT TO HUMAN CAPITAL;

RESPONSIBLE DECISION-MAKING; INITIATIVE IN ADVANCING THE MEAT

INDUSTRY IN BRAZIL AND LATIN AMERICA; COOPERATION IN RELATIONSHIPS;

SIMPLICITY IN ACTIONS; AND, FINALLY, THE STRENGTHENING OF EVERY LINK AT

MINERVA THROUGH THE COMPANY’S DETERMINATION ARE PART OF MINERVA

FOODS’ WAY OF WORKING.

MINERVA FOODS IS BASED ON VALUES THAT HAVE MARKED A PATH OF

TRUST IN ITS ACTIVITIES.1.AbouttheReport

2.MinervaFoods

3.StrategicManagement

4.CorporateGovernance

4

16

28

44

54

68

90

110

119

TableofContents5.BusinessPerformance

6.Relationships

7.IntegratedManagementSystem

8.GRIContentIndex

9.Credits

Page 4: Sustainability Report of 2015

INTHISREPORT,YOUWILLSEEHOWACTINGWITHSIMPLICITY

MAKESMINERVAFOODSVALUESPARTOFCONSTANTEVOLUTION,

INTEGRATIONANDIMPROVEMENTOFTHEORGANIZATIONALCULTURE.

ABOUTTHEREPORT

5

Page 5: Sustainability Report of 2015

ABOUTTHEREPORT

Montería–ColombiaIndustrialUnitOffices

7

Toreportitsresultstoitsvariousstakeholders,

MINERVAFOODSPUBLISHESANANNUALSUSTAINABILITYREPORTCONTAININGAPANORAMAOFTHEMOSTRELEVANTASPECTSOFITSECONOMIC,SOCIALANDENVIRONMENTALPERFORMANCEANDCORPORATEGOVERNANCE.Asapubliclytradedcompany,inlinewithtransparencyandtoallowforcomparisonwithothercompaniesintheindustry,theCompanyfollowstheGlobalReportingInitiative(GRI)guidelines,aswellastheBrazilianAssociationofPubliclyTradedCompanies[Abrasca]recommendations.ThisdocumentcoverstheperiodofJanuary1toDecember31,2015,andinformationisbasedonthemostcurrentversionoftheGRI,versionG4,usingthecore“inaccordance”option.Anyreformulationsofinformationandthereasonsforreformulationaredescribedthroughoutthedocument.GRI G4-28 | G4-29 | G4-30 | G4-32

TheinformationandperformanceindicatorsreportedweresubjecttoanalysisandreceivedindependentassurancefromBDORCSAuditoresIndependentes–apracticetheCompanyhasemployedsincethefirstpublication–publishedonpage117.GRI G4-33

Informationregardsthefollowingindustrialunits:Araguaína(TO);Barretos(SP);CampinaVerde(MG);Janaúba(MG);JoséBonifácio(SP);PalmeirasdeGoiás(GO);andBatayporã(MS);inadditiontothecontrolledcompaniesRolimdeMoura(RO),VárzeaGrande(MT);MirassolD’Oeste(MT).AlthoughtheyarenotpartofthisReportscope,thefollowingindustrialunitswillbementioned:Paraguayunits(FrigomercS.A,FriasaS.AandExpacarcontrolledcompanies);Uruguayunits(FrigoríficoCarrascoS.A.andPulsaS.A.controlledcompanies);Colombiaunits(RedCarnicaS.A.ScontrolledcompanyandRedIndustrialColombianaS.A.S);andMinervaCasings,MinervaBiodiesel,MinervaCourosandMinervaLiveCattle(controlledcompany)andMinervaFineFoods(controlledcompany)businessunits.Thesementionswillbeaccompaniedbyappropriatehighlights.Therewerenosignificantchangesinrelationtotheperiodscoveredinpreviousdocuments.Inaprocessofcontinualimprovement,inaccordancewithfeasibility,theReport’sscopewillgrowovertheupcomingcycles,involvingtheotherbusinessesundertheCompany’scontrol.GRI G4-13 | G4-20 | G4-21 | G4-23

Comments,criticismsandsuggestionsregardingthisdocumentshouldbesentbye-mailtori@minervafoods.com.ThischannelalsoallowsinvestorsandotherstakeholderstodiscussdifferenttopicsrelatedtotheCompany.GRI G4-31

Page 6: Sustainability Report of 2015

8

Todefinereportingofthemostrelevanttopicspresented

INTHISREPORT,MINERVAFOODSREVISEDTHECONSULTINGANDANALYSISPROCESSITUSEDIN2014BASEDONGRIG4GUIDELINES.Asaresult,thisdocumentcontainsanewsubject:InstitutionalRelations.Theworkdevelopedinthepreviousyearcountedontheparticipationofover150people,includingmembersoftheBoardofDirectors,Directors,employeesandoutsidestakeholderssuchasNGOs,thegovernment,financialinstitutions,investors,shareholders,buy-sideandsell-sideanalysts,suppliers,transporters,vendors,customers,livestockfarmersandacademicinstitutions.

Alsotakenintoconsiderationwastheengagementwithstakeholdersthroughouttheyear(seechartsatright),throughdirectcommunicationchannelsaswellasthrougheventsandprogramspromotedbytheCompany–suchasMinervaDay,TalkingLivestock(FalandodePecuária),@+Profitable@+Lucrativa)andStakeholderEngagementPlan(SEP)–inwhichtheCompanyparticipates,suchasindustrydiscussionforums.ThematerialityanalysisprocessalsoencompassedthemesidentifiedinGRIdocumentsandinreportsbyothernationalandinternationalindustryplayers.GRI G4-24 | G4-25

MATERIALITYMATRIXG4-18 | G4-20 | G4-21

9

APPROACHANDFREQUENCYOFSTAKEHOLDERENGAGEMENTGRI G4-26

APPROACHTOSTAKEHOLDERENGAGEMENT

FREQUENCYOFENGAGEMENT STAKEHOLDERGROUPS

SEP MonthlyatallCompanybusinessunits Employees,communitystakeholders,unions

MinervaDay TwiceayearinBrazilandintheU.S.A. Financialstakeholders

TalkingLivestock(FalandodePecuária)

DuringtheentireyearatlocationswhereMinervaFoodsindustrialunitsarefound

Livestockfarmersandtradeassociations

MeetingoftheBrazilianRoundtableonSustainableLivestock(BRSL) Duringtheentireyear

Financialstakeholders,unions,publicagencies,NGOs,private

companiesandothers

KEYTOPICSANDCONCERNSRAISEDTHROUGHSTAKEHOLDERENGAGEMENT,BYSTAKEHOLDERGROUP GRI G4-27

MAINTOPICSANDCONCERNS ADOPTEDMEASURES STAKEHOLDERGROUPS

Sustainability;efficiencyinthefield;rawmaterialmarket;animalwelfare

Promotionofeventsondiscussionoftopicsrelatedtotheindustry,suchas

TalkingLivestock

Livestockfarmers,associationsandtradeassociations

Economicscenario;financialresults;Companyperformanceinnational

andinternationalscenarios

PromotionofeventssuchasMinervaDay,heldinBrazilandintheU.S.A.andphone

conferencestodiscusstheCompany'squarterlyresults

Shareholdersandfinancialstakeholders

Transportoflivecargo;mattersrelatedtoodor;jobcreation;

concernwiththird-partyemployeewell-being;economicmovement

ofcitieswhereMinervaFoodsDistributionCentersandunits

arelocated

Implementationofengagementprojects,suchastheSEP

Employeesandstakeholdersinthecommunityneighboring

Minervaindustrialunits

*ThemeetingisnotheldbyMinervaFoods,butisaformofengagementbetweencompaniesintheindustrywithotherbusinessareas.

Page 7: Sustainability Report of 2015

E. RELATIONS WITH LIVESTOCK FARMERS AND SOCIO-ENVIRON

MEN

TAL

MANAGEMENT OF THE SUPPLY CHAIN

D. CUSTOMER RELATIONS**C. TRACEABILITY AND CRITERIA FOR ACQUIRIN

G CATTLE

B. HYGIENE AND FOOD SAFETY

A. ANIMAL WELFARE

C. EMPLOYEE DEVELO

PMEN

T

B. MANAGEMENT OF HUMAN CAPITAL, D

IVER

SITY

AN

D IN

CLU

SIO

N

A. HEALTH AND SAFETY O

F AN

D

LABOR RELATIONS WIT

H EM

PLOY

EES

AND THE SUPPLY C

HAIN

D. G

OVER

NAN

CE, E

THIC

S, TRANSPARENCY AND NON-COMPLIANCE

C. EC

ONOM

IC O

UTLOOKS AND IN

DUSTRY CHALLENGES

A. V

ALUE

OF SUSTAINABILITY

B. IN

STIT

UTIONAL RELATIONS

IN R

AISI

NG TH

E VALUE OF THE

BRA

ND

AND THE PRODUCT

OPERATION

PEO

PLE

ENVIRONMENT

ECON

OMIC

ASPECTS

A. WATER USE AND

B. USE OF MATERIALS

AND W

ASTE MANAGEMENT

EFFLUENT MANAGEMENT

C. LAND REGULATIONS, ENVIRONMENTA

LICENSING, FOREST CODE, RURAL

G. PRODUCTION IN SENSITIVE AREAS AND BIOMES

D. CLIMATE CHANGE STRATEGY

E. ENVIRONM

ENTAL IMPACT ON COMMUNITIESF. ENERGY USE

ENVIRON

MENTAL REGISTRATION (CAR)*

MATERIAL ASPECTS

*�����Although�they�do�not�have�directly�related�aspects�and�indicators,�the��G4-EN29,�G4-EN32�and�G4-EN33�indicators�regard�other�material�topics�that�help�in�providing�accountability�for�this�topic.

**��Because�of�the�importance�of�these�topics�to�the�activities�at�Minerva�Foods�and�in�relation�to�stakeholder�expectations�found�during�the�materiality�process,�the�Company�has�decided�to�report�on�some�indicators�related�to�the�following�topics,�in�addition�to�the�material�topics.

This�research�process�resulted�in�the�creation�of�a�list�of�WITH�19�themes�assessed�with�regard�to�the�Impact�and�Influence�axes�and�divided�into�four�aspects:�Economic,�Environmental,�Operational�and�People.�On�the�impact�axis,�relevant�assessments�of�the�themes�from�the�standpoint�of�Directors�and�Managers�were�considered�as�well�as�the�importance�to�industry�players.�For�development�of�the�influence�axis,�in�the�assessment�and�decision�of�stakeholders,�analyses�considered�relevance�based�on�individual�interviews,�an�online�questionnaire�and�a�face-to-face�panel,�in�addition�to�industry�studies.�As�a�result�of�the�process,�the�material�topics�presented�in�this�document�are:�GRI G4-19.

10

OPERATION

PEOPLE

ENVIRONMENT

ECONOMIC ASPECTS

A Water G4-EN8

Effluents and waste G4-EN22

BMaterials G4-EN2

Effluents and waste G4-EN23 | G4-EN25

Products and services G4-EN28

C No relation to GRI aspects

D Aspects related to the Company’s strategic vision and management in this topic will be reported. Operational aspects, such as combating deforestation, are covered in other material topics.

E Emissions G4-EN19 | G4-EN20 | G4-EN21

Effluents and waste G4-EN24

Products and services G4-EN27

General G4-EN31

Environmental grievance mechanisms G4-EN34

F Energy G4-EN3 | G4-EN5 | G4-EN6

G Biodiversity G4-EN12

Compliance G4-EN29

Indigenous rights G4-HR8

A Animal welfareG4-FP9 | G4-FP11

| G4-FP13

B Customer health and safetyG4-PR1 | G4-PR2

| G4-FP5

C Product and service labeling

G4-PR3 | G4-DMA Rotulagem de

Produtos e Serviços (antigo FP8)

D Customer privacy G4-PR5 | G4-PR8

Compliance G4-PR9

EProcurement practices G4-FP1 | G4-FP2

Supplier environmental assessment G4-EN32 | G4-EN33

Supplier assessment for labor practices G4-LA14 | G4-LA15

Freedom of association and collective bargaining G4-HR4

Child labor G4-HR5

Forced or compulsory labor G4-HR6

Supplier human rights assessment G4-HR10 | G4-HR11

Human rights grievance mechanisms G4-HR12

Supplier assessment for impacts on society G4-SO9 | G4-SO10

A Labor relations G4-FP3

Occupational health and safety G4-LA5 | G4-LA6 | G4-LA7 | G4-LA8

Labor practices grievance mechanisms

G4-LA16

Assessment G4-HR9

B Economic performance G4-EC3

Market presence G4-EC5 | G4-EC6

Employment G4-LA1 | G4-LA2

Diversity and equal opportunity G4-LA12

Equal remuneration for women and men

G4 LA13

Non-discrimination G4-HR3

Security practices G4-HR7

C Training and education G4-LA9 | G4-LA10 | G4-LA11

Investments G4-HR2

A Product and service labeling G4-PR4

B Economic performance G4-EC4

C Economic performance G4-EC1 | G4-EC2

Investments G4-HR1

DAnti-corruption G4-SO3 | G4-SO4 | G4-SO5

Unfair competition G4-SO7

Compliance G4-SO8

Page 8: Sustainability Report of 2015

PulIndustrialUnit,inMelo–Uruguay

Page 9: Sustainability Report of 2015

COMMITMENTTOHUMANCAPITALAND

THESTRENGTHOFTHEORGANIZATIONALCULTURE

KEEPMINERVAFOODSINAPROMINENTPOSITION

WITHINOURINDUSTRYSECTOR.

MINERVAFOODS

17

Page 10: Sustainability Report of 2015

PROFILE�GRI G4-8

With�sales�to�over�one�hundred�countries�on�five�continents,�

MINERVA�S.A.�(MINERVA�FOODS)�IS�ONE�OF�THE�LEADERS�IN�SOUTH�AMERICA�IN�THE�PRODUCTION�AND�SALE�OF�BEEF,�LEATHER,�LIVE�CATTLE�EXPORTS�AND�BY-PRODUCTS,�AND�IS�THE�SECOND�LARGEST�EXPORTER�IN�THE�INDUSTRY�IN�BRAZIL�IN�TERMS�OF�GROSS�SALES�REVENUE.�The�company�also�works�in�the�beef,�pork�and�poultry�processing�segment,�as�well�as�with�distribution,�through�a�vast�line�of�Company�and�third-party�products�with�the�one�stop�shop�concept. GRI G4-3 | G4-7

A�publicly�listed�company,�created�as�a�platform�for�fresh�beef,�the�Company’s�headquarters�is�located�in�Barretos,�in�the�heartland�of�São�Paulo�state,�and�counts�on�17�operating�units�in�strategic�locations:��������11�in�Brazil�–�in�the�states�of�São�Paulo,�Rondônia,�Goiás,�Tocantins,�Mato�Grosso,�Mato�Grosso�do�Sul�and�Minas�Gerais�–�three�in�Paraguay,�two�in�Uruguay�and�one�in�Colombia.�Slaughter�capacity�in�2015�was�17,330�heads�of�cattle�per�day,�with�a�deboning�capacity�of�20,316�heads/day.�Minerva�Foods�also�operates�11�Distribution�Centers,�eight�of�which�are�in�Brazil,�one�in�Paraguay,�one�in�Chile�and�one�in�Colombia,�and�counts�on�eight�international�business�offices:�in�Algeria,�China,�Chile,�Colombia,�the�U.S.A.,�Iran,�Lebanon�and�Russia.�GRI G4-5 | G4-6 | G4-7 | G4-9

At�the�end�of�2015,�the�Company�had�12,993�direct�employees�(70.40%�men�and�29.60%�women).�Gross�sales�revenue�reached�approximately�BRL10.1�billion,�up�by�35%�year-over-year,�and�net�revenue�totaled�BRL9.5�billion,�36.3%�higher�than�in�2014.�GRI G4-9

*����Distribution�centers�in�Chile�and�Colombia�began�functioning�in�2016.

MINERVAFOODS

Janaúba–MinasGeraisIndustrialUnit

Page 11: Sustainability Report of 2015

TO

MT

RO

GO MG

SPPARMS

CO

URU

Araguaína

JanaúbaCampina Verde

Palmeiras de GoiásGoianésia

BarretosJosé Bonifácio

Asunción (3 units)

MeloMontevidéu

Várzea GrandeMirassol D’Oeste

Batayporã

Rolim de MouraMontería

United Statesof America

Chile

Algeria

Russia

China

Lebanon

IranColombia

TO

MT

RO

GO MG

SPPARMS

CO

URU

Araguaína

JanaúbaCampina Verde

Palmeiras de GoiásGoianésia

BarretosJosé Bonifácio

Asunción (3 units)

MeloMontevidéu

Várzea GrandeMirassol D’Oeste

Batayporã

Rolim de MouraMontería

United Statesof America

Chile

Algeria

Russia

China

Lebanon

IranColombia

PRESENCE

INTERNATIONAL�OFFICES INDUSTRIAL�UNITS

GROSS�REVENUE NET�REVENUE

10.1Bi 9.5BiINSTALLEDCAPACITY

SLAUGHTER/DAY 17.330DEBONING/DAY 20.316

INDUSTRIAL UNITS 17

GROSS REVENUE MAKEUP (%)

30% 70%

SLAUGHTER CAPACITYPER COUNTRY

HEADS/DAY

COLOMBIA 850 - 5%URUGUAY 2.300 - 13%

PARAGUAY 2.300 - 13%BRAZIL 11.880 - 69%

INSTALLEDCAPACITY

SLAUGHTER/DAY 17.330DEBONING/DAY 20.316

INDUSTRIAL UNITS 17

GROSS REVENUE MAKEUP (%)

30% 70%

SLAUGHTER CAPACITYPER COUNTRY

HEADS/DAY

COLOMBIA 850 - 5%URUGUAY 2.300 - 13%

PARAGUAY 2.300 - 13%BRAZIL 11.880 - 69%

DOMESTIC�MARKET FOREIGN�MARKET

Page 12: Sustainability Report of 2015

VileladeQueirozfamilybeginsraisingcattleandprovidinglogisticsservicesforthetransportofcattlefromfarmstoslaughterhouses.

MinervasignsaleasecontractforaslaughterandprocessingunitinthecityofBatayporã(MS).

MinervaFoodshistorywasbuiltonasolid,isbasedonsolid,disciplinedandcoherentmanagement,throughwhichtheCompanyisapartofandcontributestothedevelopmentofBrazilianlivestock.Consistency,disciplineandfocusarestrategicdifferentials,consolidatedbysimplicity,humilityandthetenacityoftheCompany’sworkforce.

1957

1992 1999

2004

2006

TheCompanybeginstoleaseandlateracquiresaslaughterandprocessingunitinJoséBonifácio(SP).

HISTORY

ConstructionandopeningoftheslaughterandprocessingplantinPalmeirasdeGoiás(GO),oneofthemostmodernbeefprocessingfacilitiesinLatinAmerica.

AcquisitionofFrigoríficoMinervadoBrasilS.A.,VileladeQueirozfamily’sfirstslaughterandprocessingunit,locatedinBarretos(SP).TheCompanyalsoestablishesIndústriaeComérciodeCarnesMinervaLtda.

23

AcquisitionofRedCárnicameatpackingplantinColombiaandexecutionofacontracttoleaseExpacarprocessingandslaughterunitinParaguay.

AcquisitionofaplantinCampinaVerde(MG).

AcquisitionoftheLordMeatmeatpackingplantinGoianésia(GO)andtheFriasameatpackingplantinParaguay.

OpeningofthecookedandfrozenmeatplantinBarretos(SP).ThisisthefirstproductionunitofMinervaDawnFarms,aresultofajointventurewithDawnFarmsFoods.

MinervaadoptstheMinervaFoodsbrand,acquirestheFrigomercmeatpackingplantinParaguayandendstheyearasoneofthetopthreeBrazilianexportersofbeef,beefby-productsandprocessedbeef,withoverBRL1billioninvestedsince2007.

20152007

2008 2009

2010 2011

2012 2013

2014

AcquisitionofCarrascomeatpackingplantinUruguayandanindustrialinJanaúba(MG).Conclusionofpurchaseandstart-upofoperationsofVárzeaGrandeandMirassolD’Oeste(MT)plants.

PurchaseofPULmeatpackingplantinUruguay.

InstallationofDistributionCenters(DCs)inUberlândia(MG),Fortaleza(CE)andRolimdeMoura(RO).MinervaFoodstakestotalcontrolofMinervaDawnFarms,whichbeginstousetheMinervaFineFoodsbrand.AnagreementissignedtoacquireBRFslaughteranddeboningoperationsinVárzeaGrandeandMirassolD’Oeste,inMatoGrosso(MT).

ConstructionstartsatMinervaunitinRolimdeMoura(RO)andindustrialplantsareacquiredinTocantins(TO).InJanuary,constructionstartsoninindustrialunitinBarretos(SP)forproductionofcookedandfrozenmeat,throughajointventurewiththeDawnFarmsGroupfromIreland.InApril,theCompanyacquiresanoperatingindustrialunitinAraguaína(TO).

Page 13: Sustainability Report of 2015

24

MISSION,VISIONANDVALUESGRI G4-56

Tobethemostefficientcompanyinthemarket,alwaysseekingtomaximizereturnsoninvestedcapitalacrossitsbusinesssegmentsthroughappropriateriskmanagementpolicies.

Integrity,commitment,responsibility,proactivity,cooperation,simplicityanddetermination.

MISSION

VISION

VALUES

Tobeaglobalproviderofqualityfood,withsocial,economicandenvironmentalresponsibility.Minervaadoptsahighlevelofoperationalefficiency,promotingteamwork,valuingitsemployeesandfosteringrespectandtrustinitsbusinessareas.

25

PRODUCTLINES GRI G4-4

MinervaFoodsoperateswithaportfolioofover14,000items.Itmaintainsthefollowingdivisionsfortheprocessingandsaleofproducts:

Mon

tería

–C

olom

bia

Indu

stria

lUni

tJa

naúb

a–

Min

asG

erai

sIn

dust

rialU

nit

Operating in the commodities and value-added products segment in Brazil, Paraguay, Uruguay and Colombia.

Responsible for distribution of Company-branded and third-party products in the domestic and foreign markets.

Produces and sells natural casings used in production of cold-cuts and sausages.

Producer of biofuel made using cattle tallow and other renewable energy resources, with a social seal granted by the Ministry of Agricultural Development.

Creates, develops and makes products using cooked, roasted and grilled poultry, pork and beef.

Sells the Company's wet blue and semi-finished leather to companies making furniture, footwear and decorative items.

Exports live cattle to various markets.

Minerva Beef

Minerva Logistics

Minerva Biodiesel

Minerva Leather

Minerva Fine Foods

Minerva Casings

Minerva Live Cattle Exports

Page 14: Sustainability Report of 2015

26

AWARDSANDCERTIFICATIONS

CHICOMENDESAWARDForthefifthyearinarow,thecompanywasgiventheaward,createdtofosterandspreadapplicationofsustainabledevelopmentpractices,fromInstitutoSocioambientalChicoMendes.

GLOBO RURALMAGAZINENamedtheBestCompanyintheMeatIndustryspecialcategoryforthe11thBestinAgribusinessAward.Companieswereelectedbysegmentandbasedon2014financialresults.

COMPANIESTHATBESTCOMMUNICATEWITHJOURNALISTSAWARDGivenbyNegóciosdaComunicaçãoMagazine,intheMeatAgroindustrycategory.

HIGHLIGHTS

GEOGRAPHICDIVERSITY AcquisitionofRedCárnicaMeatpackingPlant,Montería(Colombia). LeasingofExpacarMeatpackingPlant(Paraguay).

CORPORATEGOVERNANCEANDMANAGEMENT ConsolidationoftheMatrixManagementModel,withadvancesindecentralizationofdecisionsandgreaterautonomyofbusinessunits. 1stStakeholderEngagementPlan(SEP)executed. Successinintegrationandexchangeofexperiencesforthenewplatformsabroad.

INDUSTRIALAREA EnhancementoftheIntegratedManagementSystem(SGI,itsacronyminPortuguese),createdundertheguidelinesoftheInternationalFinanceCorporation(IFC)performancestandards. AdoptionofbestpracticesamongBeefBrazilunits,withimplementationoftheBibleProgram.

SALES Strengtheningoftheonestopshopmodel. LaunchofCompanybrands. ExpansionofDistributionoperationsinSouthAmericancountries.

PRODUCERDEVELOPMENT Fundingadvancesgiventolivestockfarmersthroughthe@+ProfitableProgram.

BRAND AdoptionofthenewvisualidentityofMinervaFoodsanditsdivisions.

CLEANENERGY CreationofMinervaComercializadoradeEnergia,whosemanagementinvolvesseekingcleanenergygenerationmatrixes,suchasbioreactorsandwindenergy.

INVESTMENTS VolumeofoverBRL234million,gearedtowardsgainsinefficiencyandincreasedproductioncapacity.

Melo–Uruguay

Page 15: Sustainability Report of 2015

RESPONSIBLEDECISION-MAKING,THROUGH

INTEGRATEDANDCOLLABORATIVEMANAGEMENT,FOSTERS

DIALOGANDALLOWSFORPROMOTIONOFCONTINUAL

IMPROVEMENTSINPROCESSESANDRESULTS.

STRATEGICMANAGEMENT

Page 16: Sustainability Report of 2015

STRATEGICMANAGEMENT

SãoPaulo–SãoPauloOffices

31

withthecreationofthefollowingbusinessunits:BeefBrazil,BeefSouthAmerica,DistributionandLogistics,OtherBusinessandColombia–allledbyChiefOperatingOfficers–COOs.Thisstructureallowsfordynamicinternalprocesses,strengtheningintegrationbetweenbusinessunitsandcreatingamoreagiledecision-makingprocess,whilealigningemployeesaroundkeyobjectives.Todothis,COOsreportdirectlytotheChiefExecutiveOfficer–CEOandrelyonthesupportofthethreeDivisionsresponsibleforpromotingtheconnectionbetweentheCEOandtheotherdepartmentsthatprovideoperationalsupport.

GAINSFROMTHEMATRIXMANAGEMENTMODEL AlignmentofbusinessunitswiththeCompany’sstrategy Commercialflexibility Moreautonomyformanagersinthedecision-makingprocess

IN2015,MINERVACONSOLIDATEDTHEMATRIXMANAGEMENTMODELADOPTEDINTHEPREVIOUSYEAR,

MANAGEMENTMODEL

Page 17: Sustainability Report of 2015

32

WITHCLEARGOALSANDSUSTAINABLE

PRACTICES,MINERVAFOODSISONEOF

THEINDUSTRY’SLEADINGCOMPANIESIN

SOUTHAMERICA.

33

Theresultsandsubstantialgrowthachievedoverourmorethan20yearsofoperationareproofofthesolidityofoperationsandoftherightstrategicdirection,gearedtowardscreatingvalueforMinervaanditsstakeholders.Commitmenttoacultureofhighperformance,inconjunctionwithmarketintelligenceandriskmanagementthatassertivelyorientsbusiness,hasallowedanoperationalandstrategicdistributionnetworktobebuilttoservetheBrazilianandinternationalmarkets,indifferentscenarios.

WITHCLEARGOALSANDSUSTAINABLEPRACTICES,MINERVAFOODSISONEOFTHEINDUSTRY’SLEADINGCOMPANIESINSOUTHAMERICA.

MESSAGESFROMTHEMANAGEMENT GRI G4-1

20yearsof

operations

Over

Thebusinesslongevityisalsotheresultofourinvestmentsinqualifyingteams,diversifyingproductsandmodernizingandintegratingunits,aswellasthecontinualenhancementofcorporategovernancepractices.

Withclearpurposesandfocusonqualityandefficiency,wewillcontinuetoevolvesustainably,growingourpresenceinSouthAmericaandmaintainingourpositionasaprominentplayerontheinternationalscene.

Edivar Vilela de QueirozChairman of the Board of Directors

Page 18: Sustainability Report of 2015

34

DISCIPLINE,CONSISTENCYANDFOCUSDRIVEOPERATIONSATMINERVAFOODS.

35

MESSAGESFROMTHEMANAGEMENTGRI G4-1

Anotheradvancewasthegreaterautonomygrantedtomanagersthroughtheadoptionin2014ofmatrixmanagementmodel,whichresultedindecentralizationofdecision-makingandafasterandefficientresponsetoanincreasinglyvolatilemarket.

Theyear2015wasalsocharacterizedbytheannounceoftheinvestmentagreementwithSALIC,controlledbySaudiArabia’ssovereignwealthfund.Thismeasurerepresentsthestartofastrategicpartnershipinaregionwithhighpotentialdemand,theMiddleEast,whichresultedintheprivatecapitalincreasein2016.

Alloftheseactionsduringtheperiod,alongwiththecommitmentofouremployees,whocontributedtotheconstructionofasustainablegrowthtrajectory,ensuresthatMinervaispreparedtoliveuptonewinternationaldemands.

Fernando Galletti de QueirozChief Executive Officer

ThegeographicdiversificationstrategyinSouthAmerica,withacommercialfocusbasedonopeningupandgrowthinnewmarkets,allowstheCompanytodobusinessatgloballevel,whileminimizingdomesticdependenceduringtimesofgreatervolatilityandeconomicsluggishness.InayearmarkedbydipsinthepriceofanarrobaofbeefinBrazilanddepreciationintheexchangerate,resultinginachancetoimprovemeatexportmargins,consistencyinstrategicplanningledMinervatoaconsolidatednetrevenueofBRL9.525billion,36.3%morethanin2014andinaccordancewiththeearningsguidanceannouncedinMarch2015.ReturnonInvestedCapital(ROIC)reachedahistoricallevelof25%,maintainingtheCompanyasareferenceinitsindustry.

Inlinewithstrategicguidelines,MinervaacquiredameatpackingplantinColombia,leasedaunitinParaguayanddevelopedactionstomeetlocaldemands.Itincreasedoriginationofotherproducts,inadditiontobeef,andintensifiedworkatsmallandmediumretailersandinfoodservice,moreresilientsegmentsintimesofcrisis.

Toachievetheseobjectives,MinervaFoodskepttargetingthethreepillarsthatguideitsactivities-Discipline,consistencyandfocus-andinvestedintrainingandpromotingthesafetyofitsemployees.TheHumanResourcesDepartmentacquiredamoreStrategicstatusaccompaniedbythedevelopmentofacompetency-basedmanagementmodel,alignedwithprofessionalfeaturesthathaveshapedthecorporatecultureovertheyears.

IN2015,MINERVASHOWEDITSABILITYTOFORECASTANDUNDERSTANDTHEMARKETSWHEREITOPERATES.

NETREVENUEGROWTH

36,3%RECORDROIC

25,0%

Page 19: Sustainability Report of 2015

MINERVA’SOPERATIONSWEREALSOSTRENGTHENEDBYTHEIntegratedManagementSystem(SGI),implementedin2014andthroughwhichHealthandSafety,FoodSafety,SocialResponsibilityandEnvironmentareasworktogethertowardsachievingcontinualimprovement,bothfortheCompanyanditsstakeholders(learnmoreabouttheIntegratedManagementSystemonpage90).

STRATEGY

Tounderstandbeefasacommodity,Minervaprioritizeslarge-scaleproduction,adaptationofdistributionchannelstooperationsandtheuseofmanagementinstrumentstomitigatetherisksinherenttothebusiness.Theprofitabilityofproductiondependsonacombinationofefficientprocurementofrawmaterialsandgrowthinfinalproductsales.Therefore,followingqualifiedconsolidationoftheproductionstructureinBrazil,theCompany’sstrategicaxisisdiversificationofbusinessesinSouthAmerica,aregionwithcompetitiveadvantagesforthesustainabledevelopmentoflivestockfarmingandmorefavorableoperationalcostsinrelationtootherindustryplayers,suchasAustraliaandtheU.S.A..

In2015,theCompanyacquiredameatpackingplantinColombia,establishingitsplaceasthefirstBrazilianindustrytooperateinthecountrywithslaughterandprocessingofbeef,executingaleasecontractinParaguayforthissamepurpose.

BIBLE PROJECTIn2015,theBeefBrazildivisiondevelopedaworktoharmonize,standardizeandfindsynergiesinoperationalproceduresatitsproductionunits.NamedtheBibleProject,thisinitiativeincludedidentificationanduniversalizationofbestpractices,withgainsinproductivityandefficiencyandachievementofeconomicandfinancialbenefits.Theprogramassesseseverythingfromthesetofmachinery,equipment,processesandproductionmethodstocorrectionofhealthandsafetyprocedures.

PRODUCTIVITY,EFFICIENCYANDSEIZING/TAKING

ADVANTAGE/USEOFBENEFITS

Growthinthebiggestbeefimportingmarkets,inturn,issupportedbythemaintenanceandopeningofsalesofficesabroad,suchastheofficeopenedinChinainAugust2014.

Supportedbyexperienceinforecastingandseizingbusinessopportunities,Minerva’sstrategicplanningisalsofocusedonthedomesticmarket,withafocusonsmallandmediumretailersandfoodserviceclients,whosedemandismorestableduringeconomicallyvolatiletimes,ascomparedtolargeretailnetworks.Withthisdirection,DistributionCenterswereopenedinBrazilandabroadinrecentyears.

39

Montería–ColombiaIndustrialUnitOffices

36

MATRIXMANAGEMENTMODEL

ADMINISTRATION

FINANCE

LEGAL

HR

TAX

LOGISTICS

Beef Brazil

Responsible for Brazil operations, including

origination, industries, Beef Brazil commercial

operations and international offices.

Beef South America

Dedicated to operations in Uruguay

and Paraguay, including origination, industrial units and Beef Paraguay and

Uruguay commercial operations.

Other Business

Manages leather, live cattle, casings and

biodiesel operations.

Responsible for the entire Company's distribution and

logistics operations.

Distribution and Logistics Colombia

Dedicated to operations in

Colombia, including origination, industrial units and Beef sales.

AREAS OF OPERATION

Page 20: Sustainability Report of 2015

Managementofdebtandworkingcapital

Excellenceinoperationalexecution

Cultureofriskmanagement

Operationalbenchmark

Optimizationofsaleschannels(domesticandforeignmarkets)

Ramp-upofrecentadditionsinColombiaandParaguay

GreatergeographicdiversityinSouthAmericancountries

FocusonexportsExecutionoftheBusinessPlan

Forcontinualgenerationofvalueandlongevitytothebusiness,theCompanyseekstooptimizesaleschannelsindomesticandforeignmarkets.In2015,thispositioningallowedforincreasesof44%ingrossrevenueoftheMeatDivision,gainedthroughforeignmarketsales,andof18%insalesinBrazil.

Thestrategyfor2016isfocusedon:

PARAGUAY18%URUGUAY12%

COLOMBIA6%

BRAZIL64%GREATERGEOGRAPHICDIVERSITYINSOUTHAMERICA

BETTERCAPITALSTRUCTURE

FOCUSONOPERATIONALEFFICIENCY

GROWTHINOPERATIONS

GREATERPROFITABILITY

100

100

0

0

FOREIGN

DOMESTIC

44%

18%

OPERATIONALRE-ADAPTATIONIN2015,MINERVAFINALIZEDTHEPROCESSOFINTEGRATINGMatoGrossoBovinosplants–withadailyslaughtercapacityof2,600heads–anditsunitinJanaúba(MG).Toobtainefficiencyimprovementsinyield,boostprofitabilitythroughgeographicrebalancingofoperationsandsaveoncostsbyincreasingtheinstalledcapacityoftheotherunits,operationalre-adaptationwascarriedoutatitsunitsinBrazil,withparalyzationofactivitiesinBatayporã(MS)andMirassolD’Oeste(MT).

INCREASEINGROSSREVENUE

RESULTS HIGHLIGHTS

MINERVA’SOPERATIONSWEREALSOSTRENGTHENEDBYTHEIntegratedManagementSystem(SGI),implementedin2014andthroughwhichHealthandSafety,FoodSafety,SocialResponsibilityandEnvironmentareasworktogethertowardsachievingcontinualimprovement,bothfortheCompanyanditsstakeholders(learnmoreabouttheIntegratedManagementSystemonpage90).

STRATEGY

Tounderstandbeefasacommodity,Minervaprioritizeslarge-scaleproduction,adaptationofdistributionchannelstooperationsandtheuseofmanagementinstrumentstomitigatetherisksinherenttothebusiness.Theprofitabilityofproductiondependsonacombinationofefficientprocurementofrawmaterialsandgrowthinfinalproductsales.Therefore,followingqualifiedconsolidationoftheproductionstructureinBrazil,theCompany’sstrategicaxisisdiversificationofbusinessesinSouthAmerica,aregionwithcompetitiveadvantagesforthesustainabledevelopmentoflivestockfarmingandmorefavorableoperationalcostsinrelationtootherindustryplayers,suchasAustraliaandtheU.S.A..

In2015,theCompanyacquiredameatpackingplantinColombia,establishingitsplaceasthefirstBrazilianindustrytooperateinthecountrywithslaughterandprocessingofbeef,executingaleasecontractinParaguayforthissamepurpose.

BIBLE PROJECTIn2015,theBeefBrazildivisiondevelopedaworktoharmonize,standardizeandfindsynergiesinoperationalproceduresatitsproductionunits.NamedtheBibleProject,thisinitiativeincludedidentificationanduniversalizationofbestpractices,withgainsinproductivityandefficiencyandachievementofeconomicandfinancialbenefits.Theprogramassesseseverythingfromthesetofmachinery,equipment,processesandproductionmethodstocorrectionofhealthandsafetyprocedures.

PRODUCTIVITY,EFFICIENCYANDSEIZING/TAKING

ADVANTAGE/USEOFBENEFITS

Growthinthebiggestbeefimportingmarkets,inturn,issupportedbythemaintenanceandopeningofsalesofficesabroad,suchastheofficeopenedinChinainAugust2014.

Supportedbyexperienceinforecastingandseizingbusinessopportunities,Minerva’sstrategicplanningisalsofocusedonthedomesticmarket,withafocusonsmallandmediumretailersandfoodserviceclients,whosedemandismorestableduringeconomicallyvolatiletimes,ascomparedtolargeretailnetworks.Withthisdirection,DistributionCenterswereopenedinBrazilandabroadinrecentyears.

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40

MAINRISKFACTORS

Minerva’sbusinessmaybeaffectedbydifferentscenarios,suchasadverseweatherconditions,healthoutbreaks,fluctuatingcostsofrawmaterialsandcommoditiesprices,exchangeratevariation,unfavorableeconomicsituations,restrictionsonimportstoothercountries.Themanagementmodelisrevisedperiodicallyinordertominimizetheserisks,focusingon:

MARKETTwomodelsareusedtomanagemarketrisks:theValueatRisk(VaR)statisticalcalculationsystemandasystemforcalculatingimpactsbasedonapplicationofstressscenarios.Exchangerateinstruments,interestratesandderivatives(notforspeculativepurposes)arealsousedforpartialprotectionofoperationsinfaceoffluctuatingexchangerates,interestratesandcattleprices.ThisworkconsidersanalysisoftheBrazilianandinternationaleconomicsituations,inadditiontoimpactsontheCompany’sfinancialposition.

MANAGEMENT OF LIABILITIESOnDecember31,2015,Minerva’scashpositionwasBRL2.7billion,asufficientamounttoamortizedebtupto2022.Short-termdebtcorrespondedto56.2%oftotalcashandcashequivalentsand22.1%oftotaldebt.Attheendof2015,debtdurationwas5.2years.OnDecember30,2015,theCompanyconcludedtheprocessofcancellingBRL831millioninbondsissuedontheinternationalmarket,inabuy-backthathadtakenplacesincethesecondhalfof2013.

HEALTH Outbreakscanaffectfreshmeatproductexportsand,consequently,operationalresults.Tomitigatethisimpact,theCompanyonlyacquirescattleinspectedbyveterinariansanddoctorsfromtheMinistryofAgriculture’sFederalInspectionService(ServiçodeInspeçãoFederal–SIF),theagencyresponsibleforauthorizingtheproductionandprocessingofbeefinBrazil.InParaguay,UruguayandColombia,cattleacquisitionsarealsosubjecttosupervisionbytherespectivehealthauthorities.

TheCompany’sgeographicdiversificationmitigatesbusinessrisks,withsubstantialreductionofBrazilRisk.Thisstrategyisassociatedwithgrowthinexports,whichrepresentsanaturalhedgeinrelationtosharposcillationsincurrencyrates.In2015,theCompanyhadtotalgrossrevenueofBRL10.06billion,resultinginsignificantyear-over-yeargrowthingrossrevenueof35.0%.Thisresultisexplainedbya44.3%increaseinMeatDivisionrevenue,whichwasdrivenbytheconclusionoftheintegrationprocessforplantsacquiredin2014,bycapacityaddedthroughout2015(RedCárnicaplantinColombia,asofJuly,andExpacarplantinParaguay,asofSeptember)andbythestrongperformanceofexports,drivenbydepreciationintheexchangerate.

Theseresultsshowthecapacityofpredictabilityandcorrectorientationofbusiness.Thelocationofindustrialunitsineverymajorcattle-producingregioninBrazil,Paraguay,UruguayandColombialowersexposuretovariousrisks,suchashealthoutbreaksandclimatechange,whichcouldnegativelyimpacttheCompany’sbusiness.Thatisbecausethemainrawmaterial,cattle,dependsonresourcessuchaswater,electricalpower(whichinthecaseofBrazilisdependentonrainfall)andanimalfeed(connectedtoagriculture).Inaddition,lawsandregulationsarebeingcreatedasaresultofclimatechanges,compliancewithwhichisalsocapableofimpactingtheCompany’sbusiness.

Inthissense,Minervaseekstomitigaterisksrelatedtoclimatechangesbymonitoringtheconsumptionofresourcesinitsdirectoperations(industrial,logisticsandtransport)andestablishinginternalactions,suchascreationofaninventoryofGreenhouseGas(GHG)emissions,andexternalactions,promotedwithsuppliers.Inafurtherefforttoreduceimpactsandcreateopportunities,theCompanydevelopsenergyefficiencyandeffluentmanagementstudies,alwayswithafocusonenvironmentalimprovements,optimizationofresources,businessopportunitiesandloweringcosts.GRI G4-EC2

RISKMANAGEMENTGRI G4-2 | G4-14

41

COST OF RAW MATERIALOperatingmarginsaredefinedbytheratiobetweenthecostofacquiringrawmaterialsandthesalepriceofproducts.Tobalancethisequation,plantsaremaintainedatstrategicpointsandtoolssuchastheBeefDesk(learnmorebelow)areused,allowingforassertivearbitrationofinputpurchaseandproductsalepositions,accordingtothemostfavorablescenario.

CUSTOMERSInlinewithastrategytogrowbusinessintheDistributionareawithsmallandmediumretailersandinthefoodservicesegment,theCompanyenhanceditscreditpolicymanagementin2015.ThischangebroughtCreditandCommercialareascloserforgreaterflexibilityinservingthesecustomers’demands.Eighteenproprietarybrandproductswerelaunched–mostlyinthefishline–andattheendoftheyeartheportfolioincludedover270items.LinesincludedtheCompany’sownandthird-partyperishable,frozenandrefrigeratedproducts.TheCompanyworkswiththeonestopshopconcept,wherethecustomer’spurchasesareconcentratedinasinglesupplierthatisresponsiblefordeliveringallproductsorderedwithin24hours.

EXPORTSAsthesecondlargestexporterofmeatsinBrazil,MinervaFoodsisexposedtoimpactsresultingfromexchangeratevariations;internationaleconomicslowdowns;impositionorincreaseoftariffs(includinganti-dumping);healthandnon-healthbarriers;demandforexchangeratecontrolsandrestrictionsonexchangerateoperations;andstrikesandothereventscapableofaffectingtheavailabilityofportsandothermeansoftransport.Tomitigatetheserisks,theCompany’sexportsaredistributedtoahundredcountries,includingcountriesinEurope,theMiddleEast,Africa,AsiaandtheAmericas.

CREDITInpartnershipwiththeCommercialarea,theRiskCommitteeperiodicallymonitorsthecustomerportfolioinordertolimittheCompany’sexposuretocustomersandthemarket.

HEDGE POLICYTheExecutiveRiskDivisionisresponsibleforsupervisingandmonitoringhedgepolicyguidelines.ThepolicyisapprovedbytheBoardofDirectorsandcoverstworiskfactors:exchangerateandlivecattle.Basedonidentificationoftheseexposures,theTreasuryworkstoneutralizeand/ormitigaterisks,followinglimitsdeterminedbytheBoardofDirectors.

ENVIRONMENTAL STANDARDSNon-compliancecanresultinadministrativeandcriminalsanctions,inadditiontoliabilityfordamages.Withinthiscontext,theCompanyadoptsacattleacquisitionpolicythatcomplieswithlegalrequirementsandseekstoobtaincertificationsthatguaranteethestandardofqualitydemandedbyBrazilianandglobalmarkets.Allproductionunitsholdenvironmentallicensingtooperate,certificationstocollectandreleasewaterandotherauthorizationsnecessarytolegallyexerciseactivities.

MoreinformationonriskmanagementattheCompanyisavailableattheReferenceForm,onlineat:ri.minervafoods.com.

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42

BEEFDESK

MANAGEMENTOFCOMMODITIESRISKSISENHANCEDTHROUGHTHEBEEFDESK,atypeoftradingdeskcoordinatedbytheMarketIntelligencearea,wheredirectorsfromthefinancial,trading,origination,domesticmarketandforeignmarketareasestablishtheidealstrategicpositioningforthecurrentsituationinthemarket.Dailymeetingsincludeanalysesofvariablestowhichbusinessissubject,basedonsecondarydata,internaldataandprimarysurveysoftheprocurementteamandsalesforce.Decisionsmadearemonitoredusingafinancialresultmodelofeachstrategy,inordertoidentifyanyreversalsintrendsorunmappedopportunities,aswellastoenhancemanagers’decision-makingcapability.

UNIQUESTRATEGYINRISKMANAGEMENT

MARKETRESEARCH

BEEF DESK

CATTLEPROCUREMENT

LOGISTICPRODUCTION

MARKETRISK

DOMESTICSALES

EXPORTSALES

TREASURY

CHOICEMEETING

BASISTRADING

CARRY-TRADE ARBITRAGE

LONG/SHORTPOSITION

SLAUGHTERSCALE

SALES MIXFM/DM

Montería–Colombia

Page 23: Sustainability Report of 2015

THEINTEGRITYOFMINERVA’SGOVERNANCEPRACTICES

STRENGTHENSTRANSPARENCYINREPORTINGINFORMATION,

WIDE-RANGINGDIALOGANDSTAKEHOLDERRELATIONS.

CORPORATEGOVERNANCE

Page 24: Sustainability Report of 2015

CORPORATEGOVERNANCE

SãoPaulo–SãoPauloOffices

47

ThebasicprinciplesdefinedbytheBrazilianInstituteofCorporateGovernance(InstitutoBrasileirodeGovernançaCorporativa–IBGC)arefollowed,withthefollowinggoals: Transparency: Morethanthedutytoinform,thisisthedesiretoprovidestakeholderswithinformationofinterestandnotjustinformationrequiredbylawsorregulations.

Fairness: Characterizedbyfairtreatmentofallshareholdersandotherstakeholders.Discriminatorypoliticalattitudes,underanypretext,areentirelyunacceptable.

Accountability: Agentsofgovernanceshouldbeaccountablefortheiractions,undertakingthefullconsequencesoftheiractsandomissions.

Corporate responsibility: Agentsofgovernanceshouldensurethesustainabilityoftheirorganizations,toensuretheirCompany’slongevity,incorporatingconsiderationsofsocialandenvironmentalnaturewhendefiningbusinessandoperations.

AspartofBM&FBOVESPANovoMercadoindex,

THECOMPANYFOLLOWSCORPORATEGOVERNANCESTANDARDSANDCOMPLIESWITHTHERULESOFBRAZIL’SSECURITYANDEXCHANGECOMMISSION(COMISSÃODEVALORESMOBILIÁRIOS–CVM)ANDTHECORPORATIONSACT(LAWNO.6.404/76).TheCompanyalsotakespartinthefollowingorganizationsinanefforttocontributetobetterbusinessandimprovementintheindustry:ColdGoodsTradeAssociationofSãoPaulo(SindicatodaIndústriadoFrionoEstadodeSãoPaulo–SINDIFRIO);BrazilianAssociationofMeatExporters(AssociaçãoBrasileiradasIndústriasExportadorasdeCarne–Abiec);BrazilianAssociationofPubliclyTradedCompanies(AssociaçãoBrasileiradasCompanhiasAbertas–Abrasca);BrazilianRoundtableonSustainableLivestock(BRSL);BrazilianAssociationofAnimalRecycling(AssociaçãoBrasileiradeReciclagemAnimal–ABRA);andBrazilianAssociationofZebuBreeders(AssociaçãoBrasileiradosCriadoresdeZebu–ABCZ).GRI G4-16

TheCompanyvoluntarilyadherestorecognizedgoodgovernancepractices,suchascorporaterulesrelatedtoshareholderrightsandabroadandtransparentpolicyforreportinginformation,withinstructionsforManagersonhowtodobusinessandmaintainrelationswithstakeholders.

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OTHERCRITERIAADOPTEDARE: Capitalisonlysplitintoordinaryshares,withvotingrightsforallshareholders;

Registrationandreportingofthenumberofsharesthateachshareholderowns,identifyingtheshareholderbyname;

Duringsharepurchaseoffersthatresultintransferofcontrollinginterest,allshareholdersandnotjustcontrollingshareholdersareconsidered,justasallshareholdersareentitledtosellsharesunderthesesameconditions.Transferofcontrolshouldoccuratatransparentpriceand,incaseofsaleofallcontrollinginterest,thepurchasershouldofferapublicbidtoallshareholdersunderthesameconditions(tag-along);

CleardefinitionintheArticlesofIncorporationofhowtocallShareholders’MeetingsandtheprocedureforelectingandremovingmembersoftheBoardofDirectorsandtheExecutiveBoardandthelengthoftheirterms;

TransparencyinpublicdisclosureoftheManagementReport;

MembersoftheBoardofDirectorshaveunfetteredaccesstoinformationandfacilities;

ConflictsbetweentheCompany,shareholders,administratorsandmembersoftheFiscalCommitteeareresolvedthrougharbitration;

MaintenanceofateamwithadirectconnectiontotheCEOthatexecutesinternalauditsinadditiontocontractingthird-partyauditorstoassessinternalprocedureswithregardstolawsandcommitmentsundertaken.

Meetingwithfinancialstakeholders

49

GOVERNANCESTRUCTUREGRI G4-34ThecorporategovernancestructureatMinervaFoodsconsistsofaBoardofDirectors,whichisaidedbyaFiscalCouncil,RiskCommittee,AuditCommitteeandExecutiveBoard.TheExecutiveBoardis,inturn,ledbytheCEOandisdividedamongStatutoryandNon-StatutoryManagement.Thegovernancebodiesaremadeupof31members,6.9%ofwhicharewomenand93.1%ofwhicharemen.Inrelationtoagegroup,58.6%arebetween30and50,withtherestbeingover50.GRI G4-LA12

BOARDOFDIRECTORS(BD)Attheendof2015,theBoardwasmadeupoftenmembers.Thisbodyrepresentsshareholdersand,amongotherthings,itistheauthorityresponsiblefordeterminingthepoliciesandguidelinesthatserveasthebasisforthegeneraldirectionofbusiness,supervisingmanagementoftheExecutiveBoardanddecidingonitspowers,appointmentsandremovals.

Boardmembersmeetonanordinarybasisquarterlyandwhenanymembercallsameeting.ElectionstakeplaceattheShareholders’Meeting–abodywiththepowertoremoveBDmembersatanytime,withorwithoutcause–withouttheinfluenceoftheExecutiveBoard,forare-electableunifiedtwo-yearterm.

BOARD OF DIRECTORSINDEPENDENT AUDITING

Shareholders' Meeting

Fiscal Council

Risk Committee

Auditing

CEO

Statutory Management Non-Statutory Management

MEMBERS OF THE BOARD OF DIRECTORS ON DEC. 31, 2015

MEMBER POSITION

EdivarVileladeQueiroz Chairman

AntonioVileladeQueiroz ViceChairman

IbarVileladeQueiroz Member

NorbertoLanzaraGiagrandeJr. Member

DorivalAntonioBianchi Member

AlexandreLahozMendonçadeBarros IndependentMember

JoséLuizRêgoGlaser IndependentMember

RobertoRodrigues IndependentMember

PedroHenriqueAlmeidaPintodeOliveira IndependentMember

VascoCarvalhoOliveiraNeto IndependentMember

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STATUTORY MANAGEMENT MEMBERS ON DEC. 31, 2015MEMBERS POSITIONS

FernandoGallettideQueiroz ChiefExecutiveOfficer

EdisonTicledeAndradeMeloeSouzaFilho ChiefFinancialOfficer

GabrielInchaustiBlixen ChiefStrategyOfficer

FredericoAlcântaradeQueiroz ExecutiveOfficerofOtherBusiness

IainAndersonMars ChiefOperationsOfficer

LuisRicardoAlvesLuz CCOandLogisticsOfficer

EduardoPiraniPuzziello InvestorRelationsOfficer

WagnerJoséAugusto SupplyOfficer

NON-STATUTORY MANAGEMENT MEMBERS ON DEC. 31, 2015MEMBERS POSITIONS

ClertonSilvaQueiroz DirectorofCasings

FláviaReginaRibeirodaSilvaVilla LegalDirector

FranciscoAssisFilho DirectorofPlanningandControl

HenriqueAmericanoCarvalhodeFreitas BrazilExportsDirector

JoãoA.SampaioFilho DirectorofInstitutionalRelations

MarlyseDiDonatoMatheus HumanResourcesDirector

RobertoAlvesdeAlmeida AdministrativeDirector

STATUTORYMANAGEMENTThisistheexecutivemanagementbody,whosemembersaretheCompany’slegalrepresentativesandareresponsibleforinternalorganization,decision-makingprocess,day-to-dayoperationsandapplyingthegeneralpoliciesandguidelinesestablishedbytheBoardofDirectors.PursuanttotheArticlesofIncorporation,thisbodyshouldhavetwotosevenmembers,electedtoatwo-yearterm.

SãoPaulo–SãoPauloOffices

51

RISKCOMMITTEETheRiskCommitteeistaskedwithassistingtheCEOandBoardofDirectorsinimplementingfinancialandhedgingpoliciesandinassessingtheeconomicsituation,highlightingitspotentialimpactsontheCompany’sfinancialposition.TheCommitteeisnotastatutorystructureandhasfivetotenmembers:theCEO,ExecutiveBoardmembers,employeesandoutsideconsultants.

FISCALCOUNCILAsdeterminedbytheCorporationsAct,theFiscalCouncilisanindependentcorporatebodytaskedwithauditingAdministrationactivities,reviewingfinancialstatementsandreportingitsconclusionstoshareholders.

AccordingtotheMinervaFoodsArticlesofIncorporation,theFiscalCouncilisnotpermanentandisinstalleduponshareholderrequestmadeattheShareholders’Meeting,whenmembersareelectedtore-electabletermsthatlastuntilthenextShareholders’Meeting.Membersarecompensatedwithatleast10%oftheaverageamountpaidtoDirectors,notincludingbenefits,representationfeesandprofit-sharing,asestablishedintheCorporationsAct.

MEMBERS OF THE FISCAL COUNCIL ON DEC. 31, 2015MEMBERS ALTERNATES

LuizManoelGomesJúnior(Attorney) EmersonCorteziadeSouza(Attorney)

BeneditodaSilvaFerreira(EconomistandAccountant) MarceloScaffPadilha(Attorney)

LuizCláudioFontes(AdministratorandAccountant) NewtonKlaytondosAnjosMencinaukis(Accountant)

MEMBERS OF THE RISK COMMITTEE ON DEC. 31, 2015MEMBER POSITION

FernandoGallettideQueiroz ChiefExecutiveOfficer

EdisonTicledeAndradeMeloeSouzaFilho FinancialOfficer

FranciscodeAssisFerreiraFilho DirectorofPlanningandControl

JairoRonanFerreira FinancialExecutiveManager

NathandeMelloFortunatoFreire ExecutiveManagerofTreasury

AdrianaConceiçãoPedrozaMachado FinancialOperationsManager

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Duringtheyear,noriskassessmentswerecarriedoutinrelationtocorruption;however,nocaseorreportofthisnaturewasregistered.Nevertheless,MinervaisawareoftheresponsibilityinitsproductionchainandhasbeguntocreateaspecificchannelforreportsandgeneralgrievancesandisdevelopingotheractionsrelatedtocompliancewiththeNewAnti-CorruptionAct.Inaddition,100%ofoperationsinBrazilhavebeensubjecttohumanrightsanalysesorassessments.TheCompanyisalsodevelopingaprojecttoverifyenvironmentalandsocialcriteriaofcommercialpartnersinParaguay.GRI G4-SO3 | G4-HR9

Asuggestionboxisavailabletoemployeesforreports,complaints,improvementsrecommendationsandcompliments.In2015,69contactsweremadethroughthistool;ofthese,12werereports,21complaints,20suggestionsand16compliments.Noneofthecontactsreportedcasesofdiscrimination.

In2016,theCompanywillimplementConnectionMinerva–MinervaFoodsOmbudsman,inanefforttoexpandchannelsforcommunicatingwithstakeholders.

Nocaseswereregisteredduringtheyearofviolationofprivacyandlossofcustomerdataandtherewerealsonoconfirmedcasesofcorruptionorjudicialactionsmovedasaresultofunfaircompetition,anti-trustandmonopolypracticesornon-compliancewithlawsandregulations.GRI G4-HR3 | G4-HR12 | G4-LA16 | G4-PR8 | G4-SO5 | G4-SO8

Withafocusonguaranteeinghumanrights,in2015,100%ofsecuritypersonnel–180people–weretrainedonMinervapoliciesandprocedurescoveringthismatter.Duringthistime,supervisorsbeganapropertysecurityworkshoptobettertrainleadersandallowfordevelopmentofindicatorsateachunit.GRI G4-HR7

ETHICALCONDUCTGRI G4-56 | G4-SO4 | G4-DMA Anti-corruption

Businessisbasedonasetofethicalvaluesandmoralstandards,describedintheEthicalConductManualandtheEmployeeManual.TheformerprovidesinformationforinternalteamsontheCompany’sMission,VisionandValuesanddemonstrateshowtheseprinciplesaretranslatedintoworkrelationsandpersonalconduct,insituationsofconflictofinterestandinhandlingconfidentialinformation,whilealsoaddressingotheraspects.TheEmployeeManualdiscusseslaborrelations,jobduties,propertysecurity,useoftechnologyandqualitycontrol.

Uponhiring,employeesaregiventhesetwodocumentsandduringtheorientationprocesstheywatchapresentationonthemanuals’guidelines.Theyonlystartworkingafterthisprocess.Moreover,in2015,4,054hoursofOrientationandOrientationRefreshertrainingweregivenat100%ofunits,coveringtopicsthatreinforcecombatingcorruption.TheCompanyalsocarriesoutfrequentsample-basedauditstoguaranteethelegalcomplianceofitssuppliers–aprocessconductedbytheCompany’sownAuditdepartment,coveringallunits.FUNDAMENTALPRINCIPLESOFMINERVAFOODSGRI G4-DMA Non-discrimination | G4-DMA Freedom of association and collective bargaining | G4-DMA: Security practices | G4-DMA Assessment | G4-DMA Anti-corruption | G4-DMA: Unfair competition | G4-DMA Compliance | G4-DMA Customer privacy | G4-DMA Compliance

Respectandvalueemployees,managersandsociety;

Actwithsocialresponsibilityandrespectfortheenvironment;

Conductbusinessbycomplyingwithlegaldeterminationsinherenttoactivities.

53

Janaúba–MinasGeraisIndustrialUnit

Page 28: Sustainability Report of 2015

MINERVAFOODSHOLDSASIGNIFICANTSHAREINTHEEXPORT

MARKETINWHICHITOPERATES.ITSPOSITIVEANDCONSISTENT

PERFORMANCEINTHEMIDSTOFACHALLENGINGSCENARIO

HASCONTRIBUTEDTOANINITIATIVEFORTHEMEAT

INDUSTRYTOADVANCEINBRAZILANDLATINAMERICA.

BUSINESSPERFORMANCE

Page 29: Sustainability Report of 2015

BUSINESSPERFORMANCE

Montevideo–UruguayIndustrialUnit

57

capacityinresponsetoaslowdownintheBrazilianeconomythatimpacteddemandforbeef.Theconsolidatedslaughtervolumefellbynearly8%inrelationto2014,despitea15%increaseintheaveragepriceofthearrobaduringthesametime.

BrazilianfreshbeefexportssawrevenuesofapproximatelyUSD4.7billionduringtheyear,withavolumeof1.1milliontons.Therewasaccelerationintheamountexportedstartinginthesecondsemester,mostlyduetoappreciationintheUSdollarincomparisontotheBrazilianreal,withapositiveresultforexportmargins.

THROUGHOUT2015,THEMEATPACKINGINDUSTRYADJUSTEDITSPRODUCTION

INDUSTRYCONTEXT

Brazil’smixofexportsunderwentachange,drivenbythecombinationoftheopeningoftheChinesemarketanddeteriorationintheRussianeconomy:upto2014,RussiawasthetopdestinationforBrazilianexports;yetin2015,itaccountedfor12%,whileChinaandHongKongtogetherrepresented24%.

FRESHBEEFREVENUE(USD)

4.7bn 1.1

MVOLUME(INTONS)

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58

InParaguay,whereMinervaFoodshasthreeunits,theyearwasmarkedbyalargecattlesupply,resultingin1.885millionheadslaughtered,7%moreyear-over-year.Inturn,theaveragepriceofcattleinParaguayfellby14%.ChileledexportsfromParaguay,goingfrom20%ofexportsin2014to28%in2015.BrazilandRussiacontinuedtobethetopdestinationsforexportsfromParaguay,whichwascertifiedduringtheyeartobeginexportingwiththeEuropeanUnion.

In2015,thecountryslaughtered2.204millionheadsofcattle,a5%year-over-yearincrease.ChinaledexportsfromUruguay,goingfrom19%ofexportsin2014to33%in2015.TheU.S.A.alsoincreaseditsshareofexports,from15%to20%.DemandfromEuropeancountries,inturn,fellby5%.Uruguayexported261,000tonsoffreshbeefduringtheyear,5%morethanthepreviousyear.

RESULTSGRI G4-DMA Economic performance

MinervaFoodsendedtheyearwithrecordgrossrevenueofBRL10.1billion,35%morethanin2014.TheMeatDivisioncontributedtothis,withgrowthof44.3%,mostlyduetotheflexibilityofsalesatCompany–whichwasabletodirectmostofitssalestotheforeignmarket,withthepositiveimpactoftheappreciatedUSdollaronexports–andduetoslaughtersbeing7%higheryear-over-year.

Inthiscontext,MeatDivisionexportswentfromrevenueofapproximatelyBRL3.7billionin2014toBRL5.8billionin2015,growingby58%.Partofthisgrowthisrelatedtothelargestexportvolumefortheyear(+21%)andpartistheeffectoftheexchangerate(+41%).

Onthedomesticmarket,a3.5%dipinthevolumeoffreshmeatsoldwasoffsetbyahighersaleprice(+21%),resultinginRevenuegrowthof20%intheMeatDivision.GrossrevenueinotherDivisionswashigher:atBRL1.7838billion,up4%.Leatherledearnings,withforeignmarketrevenue53%higheryear-over-year.Resaleofthird-partyproductsonthedomesticmarketalsohadpositiveresults,upto22%againstthepreviousyear.

Minerva’snetrevenuetotaledBRL9.5248billionfortheyear,growingby36.3%andwithintheguidanceintervalreported.EBITDAtotaledBRL1.02billion,ahighrecordfortheCompany,34.2%higherthanin2014.EBITDAmarginreached10.7%,120bpsmorethanin2014.Yeartodate,BRL212millioninfreecashflowwasgeneratedinoperations,contributingtoacashequivalentpositionofBRL2.7billionatthecloseoftheyear,enoughtoamortizedebtuntil2022.

PULIndustrialUnit,Melo–Uruguay

URUGUAY,WHERETHECOMPANYOPERATESTWOPLANTS,HADANEQUALLYPOSITIVECYCLE.

59

DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED* (BRL THOUSANDS) GRI G4-EC1

CONTROLLING COMPANY CONSOLIDATED

2013 2014 2015 2013 2014 2015

Revenue 4.349.105 5.576.007 6.376.185 5.547.460 7.168.735 9 .545.537

Sale of goods, products, and services 4.278.962 5.566.780 6.312.553 5.461.786 7.142.632 9.469.446

Other revenue 70.143 9,227 63.632 85.674 26.103 76.091

Inputs acquired from third parties (including tax amounts – value-added tax - ICMS, tax on manufactured goods - IPI, social integration program – PIS, and social security finance contribution - COFINS)

(3.889.787) (5.105.020) (5.914.922) (5.068.272) (6.590.216) (8.909.408)

Costs of products, goods and services sold (2.945.185) (4.474.580) (4.799.474) (3.933.290) (5.736.836) (7.519.493)

Materials, energy, third-party services, and others (944.602) (630.440) (752.351) (1.145.982) (853.380) (1.389.915)

Gross added value 459.318 470.987 461.263 479.188 578.519 636.129

Depreciation, depletion and amortization (39.430) (35.852) (36.726) (57.717) (59.330) (74.776)

Net added value produced by the organization 419.888 435.135 424.537 421.471 519.189 561.353

Added value received in transfer (108.954) (21.291) 67.833 51.236 76.722 105.725

Result of equity accounting (150.125) (67.328) (9.862) // // //

Financial income 41.171 46.037 77.695 51.236 76.722 105.725

Total value added for distribution 310.934 413.844 492.370 472.707 595.911 667.078

Distribution of value added 310.934 413.844 492.370 472.707 595.911 667.078

Personnel 262.750 296.737 279.842 356.097 360.765 386.389

Taxes, fees and contributions (78.412) (30.123) 16.046 (115.329) (33.154) 31.689

Return on third party capital 440.565 565.458 997.194 546.224 686.518 1 .048.955

Interest 425.245 549.989 982.242 499.453 645.284 1 .008.677

Rent 15.320 15.469 14.952 46.771 41.234 40.278

Remuneration of shareholders’ equity (313.969) (418.228) (800.712) (314.285) (418.218) (799.955)

Earnings withheld/losses for the fiscal year (313.969) (418.228) (800.712) (313.969) (418.218) (799.955)

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1000

2015

12%

1000

2014

16%

1000

2015

12%

1000

2014

12%

1000

2015

17%

1000

2014

15%

1000

2015

10%

1000

2014

21%

1000

2015

24%

1000 16%1000

201516%

1000

2014

21%

2014

Europe

Americas

Africa

MiddleEast

EXPORTSWhileBrazilianexportsdroppedby12.1%comparedto2014,Minerva’sexportvolumewas17.4%higher,withtotalshareofsalesinthecountrygoingfrom16.3%to21.7%.Paraguayalsosawpositivegrowthof5%,withtheCompanyreachingarecordshareof20%.InUruguay,marketsharewasunchangedin2015,at17%.

MARKET SHARE IN 2015 (% OF REVENUE)

BRAZIL PARAGUAY URUGUAY

22 20 17

MINERVA MARKET SHARE

2015 2014 VARIATION %

Brazil Exports (volume in thousands of tons) 1.079,0 1.228,0 -12,1

Minerva Exports (volume in thousands of tons) 234,6 199,8 17,4

Minerva market share 21,7% 16,3% 5,4 p.p.

60

2015

2014

70%

65%

9.524,8billion

1.020,0billion

RECORDNETREVENUEOFINBRL

RESULT HIGHLIGHTS

SHAREOFEXPORTSINREVENUESUPTO5%

RECORDEBITDA,OFINBRL

EBITDAGROWTHRECORD

INCREASEDEXPORTEARNINGS

INCREASEINMEATINNATURESALES

FOREXPORT

GROWTHINDOMESTICSALES

58%44% 18%34,2%

63

Montería–ColombiaIndustrialUnit

Page 32: Sustainability Report of 2015

1000

2015

12%

1000

2014

16%

1000

2015

12%

1000

2014

12%

1000

2015

17%

1000

2014

15%

1000

2015

10%

1000

2014

21%

1000

2015

24%

1000 16%1000

201516%

1000

2014

21%

2014

AFRICAExportssawpositivegrowthintheNorthAfricaRegion,contributingtogrowthinparticipationinthesalesmixfrom15%to17%.

AMERICASVenezuela,PeruandChile,wheretheCompanyhasmaintainedasubsidiarysince2014,arethemaindestinationsforbeefexportsintheAmericas.In2015,participationinthesalesmixfell4p.p.(16%to12%),duetoadropinexportstoVenezuela,whichcutbackonbeefimportsasaresultofafragilepoliticalandeconomicsituation.

ASIATheAsianmarkethasbeenseeingstronggrowthandhasbecomeMinerva’stopdestinationforexports.Duringtheyear,thecontinent’ssharereached24%,8p.p.morethanthepreviousyear.ExportstoChina–suppliedsolelybytheUruguayplantuntillastyear–tripledwithexportscomingfromBrazil.ChinaandHongKonghadgrowthof60%comparedto2014.Alsonotablein2015wereexportstoSouthKorea,SingaporeandMalaysia.

EURASIAN ECONOMIC UNION (EEU)Theyearwasmarkedbyareductioninthisregion’sshare,representedchieflybyRussia.Depreciationintheexchangerateandfallingoilpricesnegativelyimpacteddemandandthebeefmix.Inthisscenario,theshareheldbyMinervaFoodsinthisregionwentfrom21%in2014to10%in2015.However,somevolumesthathadbeenexportedtoRussiaweredirectedtootherdestinations,especiallyAsiaandNorthAfrica.

EEU

MiddleEast

Asia

EUROPESubsidiesforbeefproductiongivenbylocalgovernmentswereslashed,causinggrowthinsalesdemandand,consequently,higherexportsfromSouthAmerica,aregionwithcompetitiveprices.

TopdestinationsforMinervaexportstoEuropeare:Italy,theU.K.,theNetherlands,GermanyandSwitzerland,recognizedfordemandinghighergradecuts(refrigeratedhindquartercuts)andforbetterbeefpricing.In2015,theCompanydirected12%ofitsexportstotheEuropeanUnion.

NAFTANafta(theU.S.A.,CanadaandMexico)shareinMinervaexportswasunchangedin2015,accountingfor4%ofexportrevenue.TheU.S.A.imported21%moreinvolumethanin2014,provingthatthiscountryhasamorerestrictedsupply.

TheCompanyservestheregionthroughitsUruguayunits;however,inJuly2015,theUnitedStatesDepartmentofAgriculture(USDA)andtheBrazilianMinistryofAgriculture,LivestockandSupplyannouncedthattheU.S.A.intendstobeginimportsoffreshBrazilianbeef.

MIDDLE EASTMinervaFoodsleadsrefrigeratedbeefsalesandholdsthesecondlargestshareinsalesinthefrozenbeefsegmentintheMiddleEast,whereithasthreeoffices(Iran,AlgeriaandLebanon).Exportsharegrewfrom16%lastyearto21%in2015,withIran,IsraelandtheUnitedArabEmiratesleading.

Outlooksfortheregionarerosy:in2015,theBrazilianMinistryofAgriculture,LivestockandSupplyandtheSaudiFoodandDrugAuthority(SFDA)signedanInternationalHealthCertificate,endingtheembargoonfreshBrazilianbeefexportstoSaudiArabia.

MINERVA MARKET SHARE

2015 2014 VARIATION %

Brazil Exports (volume in thousands of tons) 1.079,0 1.228,0 -12,1

Minerva Exports (volume in thousands of tons) 234,6 199,8 17,4

Minerva market share 21,7% 16,3% 5,4 p.p.

1000

2015

12%

1000

2014

16%

1000

2015

12%

1000

2014

12%

1000

2015

17%

1000

2014

15%

1000

2015

10%

1000

2014

21%

1000

2015

24%

1000 16%1000

201516%

1000

2014

21%

2014

Europe

Americas

Africa

MiddleEast

EXPORTSWhileBrazilianexportsdroppedby12.1%comparedto2014,Minerva’sexportvolumewas17.4%higher,withtotalshareofsalesinthecountrygoingfrom16.3%to21.7%.Paraguayalsosawpositivegrowthof5%,withtheCompanyreachingarecordshareof20%.InUruguay,marketsharewasunchangedin2015,at17%.

MARKET SHARE IN 2015 (% OF REVENUE)

BRAZIL PARAGUAY URUGUAY

22 20 17

MINERVA MARKET SHARE

2015 2014 VARIATION %

Brazil Exports (volume in thousands of tons) 1.079,0 1.228,0 -12,1

Minerva Exports (volume in thousands of tons) 234,6 199,8 17,4

Minerva market share 21,7% 16,3% 5,4 p.p.

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64

INVESTMENTSANDACQUISITIONSInvestmentsfortheyeartotaledBRL234.1million,BRL147.6millionwenttomaintenanceofassets,BRL40milliontoexpansionandBRL46.5milliontoacquiringRedCárnicaandCarrascomeatpackingplants,whosecontractswereanalyzedandapprovedbytheBoardofDirectorsanduppermanagementatMinerva. GRI G4-HR1

Red Cárnica S.A.S Meatpacking Plant (Colombia):LocatedinthemunicipalityofCiénagadeOro,inthedepartmentofCórdoba–thelargestbeefproducingandexportingregioninColombia,RedCárnicareceivedinvestmentsofUSD30million.Thebeefslaughterandprocessingplanthasaslaughteranddeboningcapacityof850heads/dayandhasnofinancialdebt.Theunit’sstrategicdifferencesincludeeasyaccesstotheportsofTolú,CartagenaandBarranquilla,inadditiontolicensestoexporttotheMiddleEast,Russia,Egypt,HongKong,Venezuela,PeruandAngola.Since2010,Minervahasmaintainedasubsidiaryinthecountrydedicatedtolivecattleexports,whichwillbeintegratedintotheRedCárnicastructure.

Expacar Meatpacking Plant (Paraguay): ThroughitscontrolledcompanyinParaguay,FrigomercS.A.,theCompanyexecutedacontracttoleaseExpacar,aplantwithadailyslaughtercapacityof600heads.ThemeatpackingplantislocatednearFrigomerc,allowingforcostsavingsandbetterproductionplanning,cattleoriginationandadministrativeandcommercialmanagement.Theplantservesthedomesticandexportmarkets.

DISTRIBUTIONANDLOGISTICSTheDistributionandLogisticsDivisionconsolidatedanewstrategicpositiononthedomesticmarketin2015,withadvancesinsmallandmediumretailersandfoodserviceindustry.Withover41,000customers,11DistributionCenters(DCs)andaportfoliomadeupof270products,theDivisionstrengthenedtheproprietarybrandsconcept.Thelaunchofafulllineoffish,potatoesandbreadedchickenproductscontributedtotheDivision.Anotherexpansionisplannedin2016fortheporkline.ThenewpositioningofDistributionandLogistics,whichoperatesintheonestopshopmodel,withdeliveriesguaranteedwithin24hours,hastransformedMinervaFoodsfromabeefsuppliertoasupplierofproteinsandperishablegoods.

Distributionalsomadeadvancesingeographicdiversification,consolidatingoperationsstartedtwoyearsagoinParaguay.TheCompany’sgoalistoopenoperationsabroadduring2016,aswellasaDCinBahia.

LOGISTICSRationalizationoftransportationispartofthestrategyattheDistributionandLogisticsDivisionandincludesexpandeduseofcontainertransport,throughrailway,waterwayandroadwaymodesoftransport.Thismovementprovidesforgainsinagility,punctualityindeliveriesandfuelsavings,loweringGreenhouseGas(GHG)emissions.

Anotherrationalizationactionisreverselogistics,appliedintransportbetweenroadwayandwaterwaymodesoftransport,wherethesametruckusedtobringproductstoportsforexportbringsinputsandrawmaterialsbacktopointsofdeliveryandproductionplantsuponreturning.

CAPEX (BRL MILLIONS)2015

147.6234.1

40.0

46.5

MAINTENANCE

TOTAL

ACQUISITIONS

EXPANSION

65

2015

2014

2013

2012

2011

2010

41,3

40,8

32,2

26,7

16,5

8,7

8 1 1 1CUSTOMER BASE (THOUSANDS OF CUSTOMERS)

BRAZIL PARAGUAY COLOMBIA CHILE

DISTRIBUTION CENTERS

51,5%

44,0%

4,5%

FOODSERVICEANDOTHERS

SALES CHANNELS

RETAIL

INDIRECTRETAIL

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66

OUTLOOKS

OUTLOOKSFOR2016AREPOSITIVEINRELATIONTOTHESCENARIOFORBRAZILIANEXPORTS.BasedondatafromtheUnitedStatesDepartmentofAgriculture(USDA),whileAustraliaisgoingthroughaperiodofretainingheiferstorestockitsherds,trendingtowardsreducingbeefexportvolumesbyover10%,Brazil,Paraguay,UruguayandArgentinaareseeingupwardtrends,contributingtosupplyinginternationalmarketneedsandincreasinglyconsolidatingtheirpositionsasexportplatforms.

TheendoftheembargoonBrazilianfreshbeefexportstoSaudiArabiaalsoofferspositiveperspectivesforsalesgrowthin2016.Oneofthehighlightsoftheregionistheconcentrationofspecialcuts,suchaskosherandhalal.

GLOBAL DEMAND

GLOBAL SUPPLY

MACRO SCENARIO

Strongglobaldemandforbeef

Emergingmarkets,especiallyAsia

Chancetoopennewmarkets,suchastheU.S.A.,Japan,Canada,SouthKoreaandMexico

LowerproductioninAustralia

RestockingofherdsintheUnitedStatesandArgentina

SouthAmericahasnaturalcompetitiveadvantages,suchasgreaterrationalizationoftheindustryandoperationalefficiency

StrongerUSdollarbenefitsexports

67PULIndustrialUnit,Melo–Uruguay

Page 35: Sustainability Report of 2015

THEDEVELOPMENTMODELATMINERVAFOODSALLOWS

FORSPEEDANDAUTONOMYINSTRATEGICPLANNING.

COOPERATIONANDENGAGEMENTWITHSTAKEHOLDERS

CONTRIBUTETOTHEBUSINESSSUSTAINABILITY.

RELATIONSHIPS

Page 36: Sustainability Report of 2015

RELATIONSHIPS

Colina−SãoPaulo

71

initsdevelopmentandmanagementmodel.Inanefforttopreparetotakeadvantageofsocial,environmentalandeconomicopportunities,in2015MinervaintegratedtheEnvironmentandSustainabilityareas,forminganewstructuredirectlyaccountabletouppermanagement.Thischangeallowedformorespeedandautonomyinstrategicplanning,withafocusonsocialandenvironmentalactions.

Anothermajorstepwasthefirstcycleofengagementwithemployeesandthecommunity–workdonetodeveloptheStakeholderEngagementPlan(SEP).

THECOMPANYMAINTAINSTRANSPARENTDIALOGWITHSTAKEHOLDERSANDINCLUDESSUSTAINABILITYPRINCIPLES

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72

STAKEHOLDERENGAGEMENTPLAN(SEP)Engagementcontributestothebusinesssustainability,sinceitinvolvesrelationswithstakeholdersthatimpactandareimpactedbytheCompany’sactivities.Withthisunderstanding,theStakeholderEngagementPlan(SEP)wascreatedin2015,withtheinvolvementofunitsoperatinginBrazil,ParaguayandUruguay.

Riskstobeforecastandidentificationofopportunitiesforactivitiesandrelationswithkeybusinessstakeholders;

Anexpandedvisionofexpectationsandtheimpactonstakeholders,withmoreappropriatemanagementintherelationshipprocess;

SEPGOVERNANCESEPgovernanceisrelatedtotheCompany’shighlevelofmanagement,whichinterconnectswithotherdecision-makingprocesses.Moreover,itallowsforinformationresultingfromengagementwithstakeholderstobeusedtoguidebusinessstrategyanddecisions,allowingfor:

Internalperceptionofstakeholderengagementasastrategicprocessintegratedintoactivities,influencingdecision-makingandaddingvaluetothebusiness;

Definitionofresponsibilitiesofthoseinvolvedandstructuringofactivities’flowinaclearandformalmanner,favoringsystemizationoftheprocess.

TO

DF

PACE

MT

RO

GOMG

SPES

PARAGUAY

URUGUAY

INBRAZIL

SOUTHEAST

SãoPaulo SãoPaulo,Barretos,JoséBonifácio,Araraquara

MinasGerais Contagem,JanaúbaCampinaVerde,Uberlândia

EspíritoSanto Viana

CENTER-WEST

DistritoFederal Brasília

MatoGrosso VárzeaGrande

Goiás AparecidadeGoiânia,PalmeirasdeGoiás

NORTH

Rondônia RolimdeMoura

Tocantins Araguaína

Pará Abaetetuba

NORTHEAST

Ceará Maracanaú

INPARAGUAY

Assunción

INURUGUAY

Montevideo,Melo

PARTICIPATING LOCATIONS

DevelopmentoftheSEPwasalignedwiththeconceptsofNBR16000andAA1000SES(AA1000StakeholderEngagementStandard)and,forgreatereffectiveness,itincludedperceptionsfromManagersandcommunityrepresentativesonthecontextofMinerva’srelationswithitsstakeholders,thehistoryoflocalengagementandstrengthsandweaknesses,aswellasrisksandopportunitiesineachregion.

DEVELOPMENTOFTHESTAKEHOLDERENGAGEMENTPLAN

73

EnvironmentalandsustainabilityactionsatunitsinBrazilandpracticesatoperationalplantsinSouthAmericaarepromotedinsync.In2015,MinervaenhancedsocialandenvironmentalcriteriaconcerningoriginationofcattleatitsParaguayoperations,asfoundintheMinervaFoodsSupplyChainFramework2015,aprojectthatinvolvedface-to-facemeetingsinAsunciónandincludedparticipationofcattlesuppliers,thefieldteam,thesupplierregistrationteamandInformationTechnologyinBrazilandParaguay,inadditiontotheSustainabilityandExecutiveBoardareasatthecompany,responsiblefortheoperation.

TheCompanypromotedamappingstudytoidentifypotentialareasofenvironmentalandsocialriskassociatedwiththebeefproductionchaininParaguay,guaranteeingsignificantsupportforthedevelopment,adoption,reviewandstandardizationofcattlesupplierverificationproceduresinthecountry.In2016,asystemwillbeimplementedtomonitorsuppliersofrawmaterialsandtomanagesupplychainrisks,basedonpublicinformationonprotectedareasandindigenouscommunitiesandrisksrelatedtosocialissues,suchasforcedandchildlabor.

Includedintheworksfor2016isthedevelopmentofinterfacestointeractwithusersofthePersonandCattlePurchasesystems(learnmoreonpage93);creationofperformancereportsusingKPIsformonitoring;strengtheningofextensionactivitiesinthefield,includingcollectionofthegeographiccoordinatesofthepropertiesoftheCompany’sbiggestsuppliers;consolidationofthecultureinregistrationcriteria;andengagementwithsegmentsoperatingincattlefarminginParaguay,suchasregulatoryagencies,associations,NGOsandcattlefarmers.

DURINGTHEYEAR,THECOMPANYTOOKPARTINSUSTAINABILITYWEEK,ameetinginAsuncióntodiscussmoreadvancedmodelsforadoptingcertificationprograms(RSPO,FairTrade,GlobalGAP),withdiscussionofbestpracticesformanagementofthesupplychain,adoptedbyMinerva,andincorporationofInternationalFinanceCorporation(IFC)performancestandards.Practicalguidelinesforidentificationandimplementationofsystemstomanagesocial,environmental,healthandsafetyriskonthejobwerealsopartoftheevent,sponsoredbytheInter-AmericanInvestmentCorporation(IIC),connectedtotheInter-AmericanDevelopmentBank(IDB).

FortheColombiaoperation,industryengagementactionsweredeveloped,withparticipationinroundtables,aimedatelevatingsustainabilityandproductioncriteriaforthelivestockchain,theresultsofwhichshouldbecollectedstartingin2016.

ENGAGEMENTOUTSIDEBRAZIL

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Melo–Uruguay

Page 39: Sustainability Report of 2015

TOTALNUMBERANDRATESOFNEWEMPLOYEEHIRESANDEMPLOYEETURNOVERBYAGEGROUP,GENDERANDREGION*.GRI G4-LA1

PROFILEGRI G4-DMA Diversity and equal opportunity

In2015,astaffmadeupof12,993professionals(70.4%menand29.6%women)contributedtotheperformanceofthebusiness;ofthese,8,416madeupthestaffofemployeescoveredbytheReport(industrialunitsinBrazil)andallofthemheldcontractsgovernedbytheConsolidatedLaborLaws(ConsolidaçãodasLeisdoTrabalho–CLT).FromthetotalworkersinBrazil,67.3%weremenand32.6%werewomen,alignedwithapolicyofvaluingandrespectingdifferences.ConsideringtheentiretyoftheCompany’soperations,theturnoverratefortheyearwas4.95%,downby0.4p.p.againstthepreviousyear. GRI G4-10 | G4-LA1

NUMBER OF EMPLOYEES HIRED

78,05%

537

137

1

Abaixo de 30 anos

66,83%

De 30 a 50 anos

21,95%

151

68

1

33,17%

50%50%

Acima de 50 anos

Under 30

30 to 50

Over 50

22,52%77,48%

274943

184513

329

Abaixo de 30 anos

26,40%73,60%

De 30 a 50 anos

9,37%90,63%

Acima de 50 anos

Under 30

30 to 50

Over 50

29,71%70,29%

314743

205406

1235

Abaixo de 30 anos

33,55%66,45%

De 30 a 50 anos

25,53%74,47%

Acima de 50 anos

Under 30

30 to 50

Over 50

*OnlyregardsoperationalunitsinBrazil.

75

EMPLOYEESGRI G4-DMA Employment | G4-DMA Labor/Management relations

In2015,MinervaconsolidatedtheinitiativestoreformulatetheHumanResourcesDepartmentthatwerestartedinthepreviousyear,withthetransformationoftheareaintoaDivision,givingitamorestrategicstatus,andestablishingasolidpersonnelmanagementpolicythatpermeatestheentireCompany.Thismovementwasaccompaniedbystructuringofinitiatives,programlaunchesandenhancementofthehumanresourcesmanagementmodel,accordingtodemands,drivenbytheCompany’sgrowthovertheyears.Acompetency-basedmanagementmodelwasadopted,insynergywithMinerva’svaluesandgoalsintheshort,mediumandlongterms.

THERE ARE THREE TYPES OF COMPETENCIES:

1.AnimalProteinChainBusinessDevelopment

2.OperationalEfficiencyExcellenceinBusiness

3.AnalyticCapacityforRiskManagement ManagementinanEnvironmentofRisk

4.BuilderofContexts

5.TransformationManagement

6.MobilizationandInfluence

7.Teamwork/Integratingaction

8.FocusonResults

ESSENTIAL

LEADER

NON-LEADER

ESSENTIAL:identifiedanddefinedasthemostimportantforthesuccessofthebusinessandwhich,therefore,allemployeesmusthave.Theymustalsobeperceivedbycustomers.

LEADERS:meansthecapacityoftheseprofessionalstoencourageemployeestoachieveorsurpassobjectives,establishingamotivationalclimateandfosteringdevelopmentofteams.

NON-LEADERS:essentialforthosewhoarepartorwanttobepartofthestaff,regardlessofthepositionheld.

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77,51%

541 157

199 81

8 1

De 30 a 50 anos

28,93%

11,11%

71,07%

88,89%

Acima de 50 anos

22,49%

Under 30

30 to 50

Over 50

67,87%

1.109

896

132

Abaixo de 30 anos

61,12%

De 30 a 50 anos

32,13%

525

570

36

38,88%

21,43%78,57%

Acima de 50 anos

Under 30

30 to 50

Over 50

64,22%

621

419

97

Abaixo de 30 anos

60,64%

De 30 a 50 anos

35,78%

346

272

25

39,36%

20,49%79,51%

Acima de 50 anos

Under 30

30 to 50

Over 50

North

Region (Brazil)

Northeast

Center-West

Southeast

South

Total

490

17

1.023

1.810

0

3.340

31

2.027

3.535

1.297

4

6.894

TOTAL NUMBER OF TERMINATED EMPLOYEES

DIRECT EMPLOYEES* GRI G4-10

*NumbersregardoperationsinBrazil.

PROFILE OF EMPLOYEES GRI G4-10

Company employees* 2015 2014 2013

Gender Women Men Total Women Men Total Women Men Total

Administrative 391 556 947 358 479 837 261 324 585

Commercial 100 425 525 171 550 721 153 531 684

Industrial/Operational 3.290 7.928 11.218 4.131 8.521 12.652 3.407 5.259 8.666

Total workforce 3.781 8.909 12.690 4.660 9.550 14.210 3.821 6.114 9.935

* Numbers regard all Minerva Foods operations, except for operations in Colombia.

BREAKDOWNOFEMPLOYEESBYJOBCATEGORY,ACCORDINGTOGENDER,AGEGROUP,MINORITYSTATUSANDOTHERINDICATORSOFDIVERSITYGRI G4-LA12

Men Women

66,71%

PROFILE OF EMPLOYEES GRI G4-10

Employees by job category * Women (%) Men (%) Total

Administrative 275 368 643

Commercial 38 153 191

Industrial / Operational 2.498 5.084 7.582

* Only regards the scope (Beef Brazil).

Employees by job category* Under 30 (%) 30 to 50 (%) Over 50 (%)

Administrative 331 (3,93%) 282 (3,35%) 30 (0,35%)

Commercial 50 (0,6%) 128 (1,52%) 13 (0,15%)

Industrial/Operational 3.285 (39,03%) 3.582 (42,57%) 715 (8,5%)

* Only regards the scope (Beef Brazil).

4,37% 3,26%

1,94% 0,35%

60,40% 29,68%

700

518588

4,37% 3,26%

1,94% 0,35%

60,40% 29,68%

700

518588

33,29%

TOTAL

8.416

EMPLOYEES BY RACE / ETHNICITY*

49%Mixedrace

5,9%Afro-descendent

0,14%Indigenous

3,7%Asian

40,7%White

*Onlyregardsthescope(BeefBrazil).

TOTAL

4,37% 3,26%

1,94% 0,35%

60,40% 29,68%

700

518588

TO

PA

CE

MT

MS

RO

GO

MGES

SP30

70135

68

13

24

124

26

98

THIRD-PARTY EMPLOYEES (REGION)**NumbersregardoperationsinBrazil.

ADMINISTRATIVE INDUSTRIAL/OPERATIONALCOMMERCIAL

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6.1.5. TRAININGANDDEVELOPMENTGRI G4-DMA Training and education | G4-DMA Investments

Minervacontinuallyinvestsinprogramsandcoursesgearedtowardsemployeesasawaytopromotenewknowledgeandgreaterengagementofemployeesinreachingthetargetsproposedinstrategicplanning.Technicalandoperationaltrainingisofferedaimedatimprovingandrefreshingknow-howspecifictoproductionandsalesofsafeandqualityitems.ExamplesincludeGoodManufacturingPracticestrainingandtherefreshercoursesestablishedbyMinistryofLaborRegulatoryStandards.

Therearenoprogramstoassistemployeeswhoaregettingreadytoretire,butdependingontheemployee’spositionheldandtimeofservice,thereareprogramstosupportthetransitiontofindinganewpositioninthelabormarket.GRI G4-LA10

IN2015,FOCUSINGONLEADERSHIP,THECOMPANYLAUNCHEDDEVELOPMENTPROGRAM.Thisactionencompassestwoinitiatives,theLeadershipSchoolandtheLeadershipDevelopmentProgram(LDP).ItisaimedatsupportingMinerva’scompetitiveadvantagethroughcontinuallearning,byvaluingtalentandbyexpandingthecapacityforprofessionalgrowthanddevelopmentforbetterperformanceasanagentoftransformation.

RECRUITMENTANDSELECTIONGRI G4-DMA Market presence

Thecompetency-basedmanagementmodelisthebasisoftherecruitmentandselectionprocess.Adocumentiskeptwithguidelinesforattractingandchoosingprofessionals,establishingthatnodiscriminatoryconductisallowed.Additionally,theCompanykeepsacomparativeanalysisbetweenthepositionsandwhereitsemployeescomefrom.ConsideringallaffiliatesandRolimdeMoura,VárzeaGrandeandMirassolcontrolledcompanies,thereare26caseswhereuppermanagementmembersatoperatingunitswerehiredfromthelocalcommunity(theentireareacoveringthestatewheretheprofessionalisnativeto),representingaround38%ofhiresforthislevel.Consideringonlythemeatpackingindustrialunits,thereare14caseswhereuppermanagementmemberswerehiredfromthelocalcommunity,whichrepresentsaround30%ofthestaffhiresforthislevel.GRI G4-EC6

Uponadmission,employeeswatchaninstitutionalvideoinDistanceLearning(DL)format,theyaregivenanEmployeeManualandtheCodeofEthicalConduct,theypickupPersonalProtectiveEquipment(PPE)andundergoorientationinthesectorwheretheywillwork.Duringtheyear,theCompanybeganthedevelopmentofanewprogram,tobereleasedin2016,aimedatraisingawarenessamongcurrentMinervastaffmemberssothattheycanbeHRpartnersinwelcomingandassistingnewprofessionals.

PWDINCLUSIONPROGRAMAprogramtoincludePeoplewithDisabilities(PWDs)iscurrentlybeingdeveloped;itincludestrainingstrategiestoprepareprofessionalswhoareinlinewiththelabormarket’sneeds.Tobuildthisinitiative,theCompanywillmapworkpostsandfacilitiesinBarretos,whilealsointernallyidentifyingpeoplethatqualifyforinclusionpursuanttotheQuotasLawinordertorecognizethispublic.Moreover,trainingwillbepromotedformanagers,withpublicitycampaignstoraiseawarenessonthistopic.TheCompanywillsignpartnershipagreementswithinstitutionsforactionstorecruitPWDsatitsunitsandwillexpandnewsofjobopenings,thereforestrengtheningitsimageasanemployeramongthispublic.

81

LEADERSHIP SCHOOL: GearedtowardsCoordinators,Supervisors,LeadersandSpecialistsintheAdministrativeandOperationalareasinallbusinessunitsandintheCorporatearea,thefocusisontoolsforPersonnelManagement,KnowledgeManagementandCompetency-BasedManagement.In2015,eightmeetingswereheldateachoftheeightunitsandatCorporatelevel,withatotalof1,156.5traininghoursgiven,training354leaders.Thisactioninvolvedon-sitetraining,pre-andpost-workactivitiesandgroupcoaching.

LEADERSHIP DEVELOPMENT PROGRAM: AimedatBeefBrazilandCorporateprofessionalexecutives,itincludestheExecutiveLDP,aimedatExecutiveManagersandDirectors;theCorporateLDP,aimedatCorporateManagers;andtheIndustrialLDP,withTraininggearedtowardsIndustrialManagers,AdministratorsandCattleProcurement,withbehavioralandtechnicaltraining,aswellasprojectstoimproveefficiencyatindustrialunits.Duringtheyear,58professionalsweretrainedoveratotalof1,120hours.Topicscoveredincludedmanagementdevelopmentandtechnicalandbehavioralcontent.

35458 1120h

TRAININGHOURS

LEADERSTRAINED

LDP:PROFESSIONALSTRAINED

1.156,50

AVERAGE ANNUAL TRAINING HOURS BY EMPLOYEE GRI G4-LA9

Units Total employees trained1

Total hours provided

Total employees X hours provided

Araguaína 6.018 461,08 15.223,56

Barretos 7.714 1.669,76 12.984,38

Batayporã 2 1.490 107,95 3.635,44

Campina Verde 2.027 356,95 3.638,79

Corporate 3.566 3.546,67 31.404,17

Janaúba 4.314 662,3 5.735,75

José Bonifácio 20.574 23.817,40 70.668,01

Mirassol D'oeste2 8.588 155,2 3.150,32

Palmeiras de Goiás 4.658 1.251,85 14.420,02

Rolim de Moura 2.435 642,1 8.150,01

Várzea Grande 11.991 979,49 16.862,61

Total 73.375 31.519,91 157.665,12

1Employeesthattookpartinmorethanonetrainingsessionwereaccountedforaccordingtothenumberoftrainingcoursesinwhichtheyparticipated.2Operationsweresuspendedin2015.

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82

Inlinewithcorporatevalues,trainingisgivenwithanemphasisonhumanrightsaspectsandpolicies.In2015,therewere22.14hoursoftrainingonthisthemeperperson.Intotal,therewere4,053.6hoursofIntegrationandIntegrationRefreshertraininggiven,involving5,750employees,orrather,over56%ofthestaffatindustrialunitsinBrazil.GRI G4- HR2

11% 56%

Numberofhoursdedicatedtoemployeetraining(units) Totalemployees

Totalhoursdedicatedtotrainingonpoliciesorproceduresconcerningaspectsofhumanrights(units)

Employeestrainedonpoliciesorproceduresconcerningaspectsofhumanrights(units)

Percentageofhoursdedicatedtotrainingonpoliciesorproceduresconcerningaspectsofhumanrights(%)

Percentageofemployeestrainedonpoliciesorproceduresconcerningaspectsofhumanrights

36.482,63 10.234

4.053,60 5.750

ASSESSMENT GRI G4-LA11

Thecompetency-basedassessmentprocessisdoneeveryyearwithemployees,withreinforcementofpreparationofleaders,foranincreasinglymoreobjectiveobjectiveassessmentfocusedonbehavior.Thegoalistospecificallymeasurecompetencies,behaviorsandpre-establishedstandards;identifythecompetenciesofthepersonbeingassessedthroughdirectedobservationofindicators;andobtaininputsthatallowanIndividualDevelopmentPlan(IDP)tobeoutlined.In2015,assessmentstookpartinconjunctionwiththecreationoftheIDPsforallhierarchicallevels.

TOTALHOURSOFTRAININGONPOLICIESANDASPECTSOFHUMANRIGHTSGRI G4-HR2

83

6.1.6. QUALITYOFLIFEANDWELL-BEINGCorporatehealthanddentalinsuranceareavailabletoemployeesatalower-than-marketcost.Employeesalsohavecafeteriasatworkplaces,providingsubsidizedfood,andinsomelocationstheyreceivefoodvouchers,mealvouchersandtransportation,inadditiontobenefitsrequiredbylaw,byagreementsandbycollectivebargainingagreements.Acompulsoryhealthcareinsuranceisprovidedwith100%ofcostsdefrayedforemployeesatVárzeaGrandeandMirassolD’Oeste,sincethisbenefitwasofferedwhenMinervaacquiredtheplants.ThisyeartheCompanybudgetedBRL21,656,101.44forthesebenefits.GRI G4-LA2

Thefollowingactionsaremaintainedforqualityoflifeandwell-being:

LUNCH WITH MANAGEMENT: For2016,meetingswillincludetheuseofquestionnairestosurveyemployeeopinionsabouttheunit’sorganizationalclimate.ThismeetingisaimedatstrengtheningtiesbetweenemployeesandManagers,inadditiontoallowingforengagementinanenvironmentoutsidetheinstitutionalenvironment.

MINERVA SOLIDARITY: Aimedatsocialresponsibilityinitiativespracticedbyvolunteeremployeesandgearedtowardsthecommunityorinternalpublic.

COMMEMORATIVE DATES: ThegoalistoprovidesatisfactionandstrengthenemployeetieswiththeCompanythroughactionsondatessuchasBirthdaysoftheMonth,InternationalWomen’sDay,LaborDay,Mother’sDay,Father’sDay,Children’sDayandChristmas.

MATERNITY PROJECT: Aimedatwelcomingandadvisingpregnantemployeesthroughactionsappliedbyamultidisciplinaryteam.Thisincludesamonthlylecturecycle,prenatalcarewithclinicalfollow-up,nutritionalsupport(atcafeterias),deliveryofamaternitykitandinstructionalbrochureandasocialvisittoguaranteesupportformotherandbaby.

HOUSEHOLD BUDGET: Offeredtoemployeesandtheirspousestolearnabouthowtobestmanagefinancialresources,monitoringincomeandexpenseswhilebalancingaccounts.In2015,thisactionwasdevelopedatPalmeirasdeGoiásunit,andin2016,itwillcoverotherunitsthroughtheFinancialEducationProject.

Montería–ColombiaIndustrialUnit

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COMPENSATIONGRI G4-DMA Market presence | G4-DMA Employment | G4-DMA Equal remuneration for women and men

THEREISNODIFFERENCEINREMUNERATIONBYGENDERORDISCRIMINATIONofanykindinMinerva’ssalarypractices.Wagesarebasedonlegallyestablishedamounts(minimumwage,collectivebargainingagreements)andamountspracticedinthemarket.Toensurepaythatiscompatiblewithjobs,theCompanyperformssalarysurveysandusesthemasareferenceforadjustmentsandtoofferfairandcompetitivelevelsofcompensation.Thelowestsalarypaidcorrespondstothenationalminimumwage.GRI G4-EC5

ThecompensationandbenefitspolicydoesnotincludeapensionplanforemployeesormembersoftheBoardofDirectorsandaprivatepensionplanisnotmaintained;employeeshiredundertheConsolidatedLaborLaws(CLT)regimeareguaranteedofficialsocialsecurity.Therearealsonocontractualarrangements,insurancepoliciesoranyotherinstrumentscontainingcompensationorindemnitymechanismsintheeventofremovalfrompositionorretirement.Allbenefitsrelatedtopensions,retirementsoradditionalbenefitsarecompliantwithBrazil’ssocialsecuritylaws.GRI G4-EC3

MATHEMATICAL RATIO OF SALARY AND REMUNERATION BETWEEN WOMEN AND MEN, BROKEN DOWN BY JOB CATEGORY AND RELEVANT OPERATIONAL UNITS GRI G4-LA13

Employees by job category Total Women MenWomen/Men Ratio

(average remuneration)

Upper Management 31 2 29 63

Management 103 13 90 84

Coordinator/Supervisor/Consultant 326 61 265 108

Specialist/Analyst 838 273 565 103

Technician/Site In-Charge 72 20 52 82

Administrative 849 407 442 99

Operational 7956 2537 5419 87

Apprentice 70 32 38 96

Intern 10 2 8 160

Janaúba–MinasGeraisIndustrialUnit

85

SUPPLIERSGRI G4-12

ATTHEENDOF2015,MINERVAHADCOMMERCIALRELATIONSWITH39,812NATIONALANDINTERNATIONALSUPPLIERS.

Montería–ColombiaIndustrialUnit

COMMITMENTS TO SUSTAINABLE PRACTICES GRI G4-15

National Compact for the Eradication of Slave Labor

Defines actions for signatories to take aimed at eradicating companies or people from their production chains that use workers in slave-like conditions (signed on May 19, 2009).

Conduct Modification Agreement for Sustainable Livestock Farming

Sponsored by the Federal Prosecution Office of Pará (signed July 7, 2009).

IFC Performance Standard (PS)PS1: Assessment and Management of Environmental and Social Risks and ImpactsPS2: Labor and Working ConditionsPS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

Greenpeace Term of Commitment Minimum Criteria for Cattle Operations and Beef Products on an Industrial Scale in the Amazon Biome (signed on October 5, 2009).

Brazilian Development Bank Resolution 1854 Compliance with social and environmental guidelines and criteria for the Brazilian Development Bank to support the cattle farming sector.

BRSL

Joined Brazilian Roundtable on Sustainable Livestock (BRSL). The goal of the BRSL, whose members are different representatives of the Brazilian livestock value chain, is to debate and formulate principles, practices and common standards that contribute to sustainable development of livestock farming in Brazil.

SUSTAINABLELIVESTOCKFARMINGBecausecattleareitsmainrawmaterial,theCompanypromotessustainablelivestockfarming.Thisguaranteesthatfoodsoldcomesfromfarmsandsuppliersthatmeetcriteriaforsocialandenvironmentalresponsibility.AllpartnersandtheirpropertiesareassessedinrelationtoMinerva’soriginationcriteria,whichincludenooccurrencesofforcedand/orchildlaborpractices–arequirementformalizedintheCompany’sCodeofEthicsandinitsRecruitmentandSelectionProcedure,withtheexceptionofYoungApprentices-andnoembargosbytheBrazilianInstituteoftheEnvironmentandRenewableNaturalResources(InstitutoBrasileirodoMeioAmbienteedosRecursosNaturaisRenováveis–Ibama).Analysisisdonefarmbyfarmandateachpurchase. GRI G4-HR5

Thereisalsoapriorblockingsystem,calledtheblacklist,andthelistsofareasembargoedbyIBAMAandtheMinistryofLaborandEmployment(MTE)aremonitoreddaily,asistheTransparencyListputoutbytheInstitutefortheNationalCompactforEradicationofSlaveLabor(InstitutodoPactoNacionalparaaErradicaçãodoTrabalhoEscravo–InPACTO).Allsupplierswithsocial,environmentaland/orlaborirregularitiesareautomaticallyblockedintheprocurementsystemandremainblockeduntiltheyarefullyincompliance.

Moreover,Minervaisasignatoryofvariousprotocols,termsandagreementswithcivil,governmentalandnon-governmentalorganizations.GRI G4-15

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86

AMAZONBIOMEIn2015,throughanannualauditofthepubliccommitmentwithGreenpeace,aninternationalNGO,Minervawasnotfoundtohaveanyinstancesofnon-complianceinprocurementofanimalsonpropertiesintheAmazonBiome.Thisprojectinvolved9,813purchasesofrawmaterialsatsixbusinessunitsthatreceivedanimalsfromfarmslocatedintheBiome:Abaetetuba(PA),Araguaína(TO),MirassolD’Oeste(MT),PalmeirasdeGoiás(GO),RolimdeMoura(RO)andVárzeaGrande(MT).

Onehighlightfortheyearwasthemappingexpansionofsupplierproperties.In2013,43.5%offarmsweremapped;in2014,85.1%andin2015,92.0%.

COMMITMENT: WHAT MINERVA VERIFIES

Embargoed areas Ibama consultation.

Existence of compulsory or degrading labor Consultation of the list put out by the Ministry of Labor and Employment list and/or list published by InPACTO through the information access law.

Deforestation

Analysis done by a geomonitoring company (according to updates to the Satellite Monitoring of Deforestation in the Legal Amazon Project – Prodes and the Real-Time System to Detect Deforestation – Deter, provided by Brazil’s National Institute for Space Research – INPE).

Invasion of indigenous landsAnalysis done by a geomonitoring company, based on official letters sent by Brazil’s National Indigenous Foundation (Fundação Nacional do Índio – Funai) or after receiving an official letter from the Federal Prosecution Office.

Illegal land occupation and violence in the field

Through official letters sent by Brazil’s National Institute of Colonization and Agrarian Reform (Instituto Nacional de Colonização e Reforma Agrária – Incra) and ICMBio or after receiving an official letter from the Federal Prosecution Office.

Protected areas Analysis done by a geomonitoring company, based on official letters sent to ICMBio or after receiving an official letter from the Federal Prosecution Office.

RolimdeMoura–Rondônia

87

LIVESTOCKFARMERSOver2015,theCompanycarriedoutbusinesstransactionswith6,514livestockfarmers.Ofthistotal,2,354werenewsuppliersselectedduringtheyearand100%ofthesewereassessedbasedonenvironmental,landownershipandlaborcriteria,withconsiderationofpossibleimpactsonsocietyandhumanrights.GRI G4-EN32 | G4-LA14 | G4-SO9 | G4-SO10 | G4-HR10

Assessmentsweredonebeforeexecutionofcontracts,whichcontainedclausesoncompliancewithapplicablelaw,includinglaborlaws;inotherwords,theCompanydoesnotmaintainrelationshipswithanybusinesspartnersthatcouldcausenegativeimpacts.Nevertheless,duringtheyear21livestockfarmers(0.3%)wereplacedintheemployerregistrybytheMinistryofLaborandEmployment(MTE)formaintainingworkersincompulsoryworkconditions,identifiedaspotentialviolatorsofhumanrights.AlloftheselivestockfarmerswereblockedintheCompany’ssystem,closingtheirbusinessactivities.Sevencasesofviolationofindigenouspeople’srightswerealsoregisteredandenteredintotheblockingsystem.MinervasendsofficialletterseverysixmonthstoallregionalcoordinationofficesoftheNationalIndigenousPeoplesFoundation(FundaçãoNacionaldoÍndio–Funai),certifyingthattherearenoconflictsinareaswithCompanysuppliers.GRI G4-LA15 | G4-SO10 | G4-HR6 | G4-HR8 | G4-HR11

9.813 6Abaetetuba(PA)Araguaína(TO)MirassolD’Oeste(MT)

NUMBEROFRAWMATERIALPURCHASESINTHEBIOME

INDUSTRIALUNITS

UNITSTHATMADEPURCHASESINTHEBIOME

EXPANSIONOFMAPPING

43,5%

2013

2014

2015

85,1%

92,0%

Inlinewiththepromotionofsustainabilityinitsproductionchain,theCompanyadvisesandinstructslivestockfarmers.Duringthe4,755fieldvisitsdonein2015,Minervahelpedtoapplytechniquestoimproveproductivityatfarms,withoutincreasingpastureareasandwhilereducingpressureonforestsanddirectlycontributingtoclimatechangeissues,inadditiontoencouraginglivestockfarmerstooptimizeuseofnaturalresources.Toolsarealsoprovidedsothatsuppliershavetheinformationneededtoqualifyrawmaterialinasustainableway:

SUPPLIER SERVICES (SS)Adirectchannelofcommunicationavailabletolivestockfarmerstoanswerquestionsandsendinsuggestions,includingtopicsrelatedtosustainablelivestockfarming.

Itcanbeaccessedby:Twitter:@minervaresearchE-mail:[email protected]:www.minervafoods.com

PalmeirasdeGoiás(GO)RolimdeMoura(RO)VárzeaGrande(MT)

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88

TALKING LIVESTOCK (FALANDO DE PECUÁRIA)

Asupplierrelationsinitiative,supportedbytalksaswellasfieldvisitsdonebyMinervatechnicians,zootechnists,veterinariansandagronomists,withtopicsandsubjectssuitedtotherealityofeachregionandstructuredbasedondiagnosesdonebyCompanybuyersandlivestockfarmersuggestions.In2015,tenmeetingswereheldinsixstates–SãoPaulo,MinasGerais,Goiás,MatoGrosso,TocantinsandRondônia–with647participants.

Eventsadvisingonanimalwelfareandsustainabilitywerealsoheldinpartnershipwithtradeassociations,consultantsandunions,with12,364participants.

@ + PROFITABLE (@ + LUCRATIVA)

Adevelopmentinitiativeusingfundingadvancesforlivestockfarmers,the@+Profitableprogramadvisesonincreasingproductivityandcreatingrevenuewithimprovedcattlenutritionandtheresultingincreaseincarcassweight.

Todothis,MinervahasdevelopedanextensionprograminthemoldsoftheSãoPauloStateAgribusinessTechnologyAgency(AgênciaPaulistadeTecnologiadosAgronegócios–APTA).Techniquestosupplementcattleareusedtocorrectnutrientdeficienciesfromweaningtotermination,seekingayoungeranimal(slaughteredwithamaximumof24months)andwithaweightofaround18arrobas(270kg)ormoreandgoodfinish(averagecoveragestartingat3mm),whichwillservethedemandofpracticallyeverymarket.

TRUSTING BOND PROGRAM (PROGRAMA LAÇO DE CONFIANÇA)

Aimedatstrongerrelationshipswithsuppliers,bysendingreportswithanalysesontheCompany’sresultsandmarketandclimatetrends,aswellasconfinementstudiesformoreinformationonmarketconditions.

In2015,theprogramincluded:

175reportshostedonthewebsite(www.minervafoods.com)andsentbye-mailtosuppliers

3,250livestockfarmersregistered

CATTLE FUTURES REPORT

MINERVA RESULTS REPORT

CLIMATE REPORT

CONFINEMENT STUDY

Providesinformationontrendsinthegrowingconfinementmarketbyregion,includingfarmers’intentiontomaintainorexpandthistypeofoperation,accordingtoinformationobtainedbyextensionagents.

Showssummarizedclimatevariationsbyregion,withanemphasisonsoilhumidityconditions,inalanguagesuitedtoorientationoflivestockactivity.

Markettrendsforlivecattle,proteins,competitorsandgrains.

Summarizedquarterlyresultsreportedinasimplifiedlanguage.

CONTRACTSGRI G4-DMA Compliance | G4-DMA Supplier environmental assessment | G4-DMA Occupational health and safety | G4-DMA Supplier assessment for labor practices | G4-DMA Investments | G4-DMA Non-discrimination | G4-DMA Child labor | G4-DMA Forced or compulsory labor | G4-DMA Indigenous rights | G4-DMA | Supplier human rights assessment | G4-DMA Compliance | G4-DMA: Supplier assessment for impacts on society

AllMinervaFoodscontractscontainspecificclausesonhumanrightsandrequirementsthatincludecompliancewithenvironment,healthandoperationalsafetylaws,aswellasobtainingandkeepingvalidalllicenses,amongotherrequirements,underpenaltyofterminationofcontractandotherpenalties.Inrelationtolaborissues,contractclauses

Colina−SãoPaulo

imposerestrictionsonemployingminors,asestablishedintheConsolidatedLaborLaws(CLT)andtheStatuteofChildrenandAdolescents(EstatutodaCriançaedoAdolescente–ECA).GRI G4-HR1

Partiestocontractsmustalsostatethattheydonotacquirecattleproductsfrompeopleorcompanieslistedinthefollowingregistries:

BrazilianMinistryofLaborandEmployment’scompulsorylaborblacklist(Directiveno.540/2004,datedOct.15,2004);

ListofareasunderIbamaembargo(IbamaDirectiveno.19,datedJuly2,2008andDecreeno.6,321/2007);

Funailistofdeclaredindigenousareas.

INVESTORSMinervahasanInvestorRelationsdepartment,withprofessionalsdedicatedtotransparentcommunicationandreportingoftheCompany’sperformance.OneofthemainformsofcommunicatingwithinvestorsistheInvestorRelationswebsite(www.minervafoods.com/ri),whichcontainsfinancialinformation(events,spreadsheets,quotes,graphs,requestforinformation,ratings,etc.),industryanalyses,corporatepresentations,noticesanddocumentsrequiredbasedonthedeterminationoftheBrazilianSecuritiesandExchangeCommission(CVM)andRegulationsfortheNovoMercadoIndex,thehighestlevelofcorporategovernanceattheBM&FBOVESPA.

AnalyststhatfollowMinervaday-to-dayinthefinancial,stockandcurrencymarketsarecontactedbye-mail,throughmeetingsandthroughphoneconferences,whichreachover160participantsgatheredannually.

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ALLOFTHELINKSATMINERVAFOODSARESTRENGTHENEDBYTHECOMPANY’S

DETERMINATION.EVERYDAY,THECOMPANYHONORSITSCOMMITMENT

TOTHEENVIRONMENT,THESAFETYOFITSEMPLOYEES,ANIMALWELFAREAND

THEQUALITYOFITSPRODUCTS.

INTEGRATEDMANAGEMENTSYSTEM

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INTEGRATEDMANAGEMENTSYSTEM(SGI)

AraraquaraDistributionCenter–SãoPaulo

93

INTEGRATEDMANAGEMENTSYSTEM(SGI)

In2014,MinervaFoodsbeganstudiesonaspectandimpact,hazardsandrisksatitsoperatingunits,inordertointegrateitsFoodSafety,SocialResponsibility,HealthandSafetyandEnvironmentprocesses,practicesandareasunderasinglemanagementsystem.

TheSGIwasstrengthenedin2015,

AIMEDATEXCELLENCETHROUGHINCREASEDEFFICIENCYANDQUALITY,ENHANCEMENTOFPROGRAMSAIMEDATEMPLOYEEHEALTHANDSAFETYINADDITIONTOSOCIALANDENVIRONMENTALINITIATIVES.ThistoolisinlinewiththeprinciplessetforthbytheInternationalFinanceCorporation(IFC)attheWorldBank.MinervaFoodsistheonlycompanyintheindustryinLatinAmericatoachieveIFCrecognitionforitsexcellenceincorporategovernanceandmanagementpractices.TheIntegratedManagementSystemalsoallowsforaglobalviewofopportunitiesanddemands,contributingtocreatingvalueforvariousstakeholdersandforthebusiness.

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ITS GUIDELINES ARE:

Topromoteandprotectthehealthandphysicalintegrityofemployees,serviceprovidersandvisitors,throughsafeconditionsandbehaviorsandmanagementofhazardsandrisksidentifiedinprocesses,minimizingtheoccurrenceofincidents;

Torespecttheenvironmentandcommunity,bypreventingpollutionandconservingnaturalresources,contributingtoenvironmentalpreservation,withaviewtowardsthesustainabilityofthebusiness,managingsignificantenvironmentalaspectswiththeappropriatetreatmentofliquideffluents,solidwasteandairemissions;

Toofferfoodproductsincompliancewithfoodqualityandsafetystandards,promotingcontinualimprovementinprocesses,productsandservices;

Torespectemployees,renouncingallandanykindsofdiscrimination,forcedlaborandchildlaborandcreatingconditionsfortheteamtogrowthrougheducationandwork,promotingtheCompany’sparticipationanddevelopmentwithlocalcommunitiesandespeciallywiththoseneighboringoperations,throughactionsthatbenefitandstrengthenitsimage;

Tocomplywithlawsandotherapplicablestandardsandregulations;

Tostrivetoservetheneedsandexpectationsofcustomersandotherstakeholders.

Toraiseawarenessamongemployeessothattheypromotetheseprinciples,anSGIWeekwasheldin2015with102actions/eventsatnineunits.EnvironmentWeekandInternalOccupationalAccidentPreventionWeek(Sipat,itsacronyminPortuguese)wereintegratedintoSGIWeek,bycoveringthelinksbetweenfoodsafety,socialresponsibility,healthandsafetyandenvironmentactions.BecauseofitsimportanceSGIWeekwillbeexpandedtounitsatrelatedbusinesses.

TheCompanyisconstantlyintegratingnewplantsintoitspracticesandcommitmentsinordertokeepprocessesuniform.In2015,afterintegrationoftheJanaúbaUnit,thepaceofslaughtersanddeboningatthismeatpackingplantreachedagrowinglevelofefficiencyandoperations,increasingby450head/day,withsignificantsynergywiththedemandsdefinedforexportbusinesstoEurope.

MINERVA INTEGRATED MANAGEMENT SYSTEM

isamethodformanagingabusiness,wherevariousareasworktogether,withthegoalofputtingtheirpoliciesintopracticeandachievingresultsinthebestpossibleway.

HealthandSafety;

FoodSafety;

SocialResponsibility;

Environment.

THE AREAS COVERED BY THE SGI ARE:

INTEGRATED MANAGEMENT SYSTEM

PRODUCTRESPONSIBILITYGRI G4-DMA Product and service labeling

Toremainaglobalreferenceintheproduction,saleanddistributionoffood,

THECOMPANYISCOMMITTEDTORESPONSIBLECATTLEORIGINATION.Twosystemsareusedtomanageandoperationalizeacquisitionofrawmaterial:thePersonsystem,relatedwithsupplierregistration;andtheCattleProcurementsystem,pertainingtomanagementofcattlepurchasesandinteractionwithprocessesatindustries.Afteractivationofthebusinesspartner’sregistrationinthePersonsystem,alloftheplanningmanagementfortheslaughterscales,negotiationsandoperationalintelligenceoftheprocurementprocessaredoneusingtheCattleProcurementsystem.

Thismeansthattheanimalsaretrackedatindustriesinanintegratedwaywithothersystems.IntheDistributionDivision,trackingallowsfororganizationoftheorderinwhichitemsleave,accordingtoproduction.Sothefirstproductproducedisthefirsttobetransported,guaranteeingquality.

Moreover,alloperations–processing,packaging,storage,distribution,publicity,labelingandfoodsafetystandards–aresubjecttoregulationandsupervisionbytheMinistryofAgriculture,LivestockandSupplyandbylocalandforeignauthorities.Productnomenclature,slaughter,packagingandexpirationdates,lotnumber,nutritionalinformation,addressandthenumberoftheestablishmentandoftheBrazilianDepartmentofInspectionofProductsofAnimalOrigin(DepartamentodeInspeçãodeProdutosdeOrigemAnimal–DIPOA)areshownonlabels.

Ondomesticmarketproducts,thereisalsoinformationonpackagesregardingcorrectconservationathome.GRI G4-PR1 | G4-PR3

SATISFACTIONGRI G4-PR5

THESUCCESSOFMINERVA’SBUSINESSISCONNECTEDTOCUSTOMERSATISFACTION.ThatiswhytheCompanymakesstridestounderstandandmeettherealneedsofthispublic,throughrequests,suggestionsandcomplaintsthatareregistered,analyzedandprocessed.Productsandprocessesaredeveloped,improvedand/orappliedwiththesamegoal.Complaintsregardingproductsaredividedbetweenthedomesticandforeignmarket.In2015,therewere102domesticmarketand440foreignmarketcomplaintsofnon-compliance.Allinformationisanalyzed,productsarecheckedandgrievancesarereportedtotheunitsoforigination,whichareresponsibleforcreatingcorrectiveactionplans.Customersfollowtheentireprocessandtheproducerunitisresponsibleforprovidingapositiononresolution.

Janaúba–MinasGeraisIndustrialUnit

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96

CERTIFICATIONS

HACCP – HazardAnalysisandCriticalControlPointsidentifiesthreatstohumanhealthinindustrialprocesses,inlinewiththeinternationalcodeonGeneralPrincipalsofFoodSafety.TheHACCP-certifiedunitsare:Araguaína(TO),RolimdeMoura(RO),CampinaVerde(MG),Janaúba(MG)andBatayporã(MS).

BRC Food – AsetofqualityandsafetystandardsforfoodproductionissuedbytheBritishRetailConsortium(BRC).ThefollowingunitsareBRCFood-certified:Barretos(SP),JoséBonifácio(SP),PalmeirasdeGoiás(GO),Janaúba(MG),VárzeaGrande(MT),Pul*(Uruguay)andCarrasco*(Uruguay).

ISO 22000 – Thefirstinternationalfoodsafetymanagementsystemstandard,coveringinteractivecommunication,systemsmanagementandriskcontrol.ThePul*(Uruguay)unitisISO22000certified.

ISO 9001 – Asetoftechnicalstandardsestablishingaqualitymanagementmodel.ThePul*(Uruguay)unitisISO9001certified.

*TheseunitsarenotpartofthescopeofthisReport.

HEALTHANDFOODSECURITYGRI G4-PR1 | G4-DMA Customer health and safety

Toguaranteecompliancewithlegalhealthandfoodsafetystandardsacrosstheproductionchain,Minervamonitorsself-controlprogramsatunitsonadailybasis,suchastheHazardAnalysisandCriticalControlPoint(HACCP),SanitationStandardOperatingProcedures(SSOP),SanitationOperatingProcedure(SOP),SpecifiedRiskMaterial(SRM),AnimalWelfare(AW)andGoodManufacturingPractices(GMP),amongothers.Cattlecontrolprogramsarealsomaintainedatcommercialpartners’farms,inordertoidentifyandpreventchemicalresiduefrombeingtransferredtotheendproduct.AttheCompany’sfacilities,healthcontrolsrelatedtothefoodindustryareadoptedandthereisapermanentFederalInspectionServicepresenceandparticipationintheNationalWasteandContaminantControlPlan.

RolimdeMoura–RondôniaIndustrialUnit

BRC GLOBAL STANDARDS-CERTIFIED UNITS GRI G4-FP5

Units Production volume (Kg)

Percent of production (%)

Barretos (SP) 155,091,590 18.10

José Bonifácio (SP) 138,061,873 16.11

Palmeiras de Goiás (GO) 304,071,722 35.50

Janaúba (MG) 76,533,866 8.93

Várzea Grande (MT) 183,074,399 21.36

Total 856,833,450 100.00

HACCP-CERTIFIED UNITS GRI G4-FP5

Units Production volume (Kg)

Percent of production (%)

Araguaína (TO) 97,767,070 27.87

Campina Verde (MG) 46,850,237 13.35

Janaúba (MG) 76,533,866 21.81

Rolim de Moura (RO) 83,718,439 23.85

Batayporã (MS) 46,044,404 13.12

Total 350,914,016 100.00

ANIMALWELFAREGRI G4-DMA Procurement/Sourcing practices | G4-DMA Animal well-being

Minervafollowsstrictanimalwelfarestandardsinitsproductionchains,complyingwithaseriesofpracticesandmanagementapproachestopreserveanimals’naturalbehaviorwithoutharmingthemandwhilepreservingtheirintegrity.Amongaspectsarephysiological,environmental,sanitary,behavioralandpsychologicalfreedoms,inadditiontomoralandethicalcodesrequiredbytheworld’schiefconsumermarkets.FortheCompany,agooddegreeofwelfaremeanstheanimalissafe,healthy,comfortable,well-nourished,freetoexpressnaturalbehaviorsandnotsufferingfromnegativementalstates,suchaspain,frustrationandstress.

TheCompanypurchasesanimalsfromthirdpartiesandmaintainsariskmanagementstrategy,workingtocontrolphysicalsupply.Toguaranteevaluesatorigination,aguidebookonmanagementandanimalwelfareisavailabletolivestockfarmers,showingthemtheimportanceofcaringforherdsandtheimpactsofnotadoptingbestpractices.Duringtheyear,therewere32,251purchasesinBrazil,completedintotalcompliancewithMinerva’scommercialpracticespolicy,whichincluded1,617,258cows,includingsteersandheifers,raisedinagrass-fedsystem,usingmodifiedconfinement,onfeedlotsandondrylots.WhileinParaguay,atotalvolumeof350,056animalswaspurchasedduringtheyear.GRI G4-FP1 | G4-FP2 | G4-FP9

PERCENTAGE AND TOTAL ANIMALS RAISED AND/OR PROCESSED, BY SPECIES AND TYPE OF RAISING METHOD, BY CONFINEMENT TYPE GRI G4-FP11 | GRI G4-FP9

Type of systemSteers Heifers Total

Number % Number % Number

Feedlot 674,451 92 58,137 8 732,588

Grass-fed 455,121 74 160,887 26 616,008

Modified confinement 231,103 86 36,351 14 267,454

Blank 1,181 98 27 2 1,208

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THE TEN COMMANDMENTS OF BEEF QUALITY

Minerva Foods uses quality standards and criteria for the meat it produces, processes and sells. Ten parameters are used, which are conveyed to partner livestock farmers:

1. Pay attention to animal health, particularly vaccination campaigns and control of endoparasites and ectoparasites;

2. Do not use prohibited medications, prohibited hormones and poultry litter;

3. Respect the waiting period for veterinary products and use control to prevent animals with meat waste from being sent for slaughter;

4. Herd tracking, sanitary control and guarantee of animal origin;

5. Send all transport and animal identification documentation;

6. Follow animal welfare concepts: do not use cattle prods or electric prods and take special care in management and loading of animals to avoid stress;

7. Form lots of animals with the same age and size to facilitate the transport and pre-slaughter management stages and prevent herd stress;

8. Provide quality water and a balanced diet, contributing to better finishing of the carcass;

9. Try to slaughter younger animals, due to the requirements of the biggest markets, while also promoting increased turnover of animals on properties;

10. Promote employee training, since good management results in healthy animals.

MINERVA�FOODS�USES�QUALITY�STANDARDS�AND�CRITERIA�FOR�THE�MEAT�IT�PRODUCES,�PROCESSES�AND�SELLS.�

Montería�–�Colombia�

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100

USEOFINJECTABLESINCATTLEAninitiativeoftheMinervaCattleProcurementDepartment,inpartnershipwiththeTechnicalAnimalHealthDepartmentofOurofinoandtheGaiaCattleHealthResearchGroupattheFederalRuralUniversityoftheAmazon,theGoodPracticesinUseofInjectablesinCattleguidebookisaimedatpartnerlivestockfarmers.Thisdocumentshowsmanagementtechniquestominimizeandeliminatehealthrisksinvolvedinraisingcattle,inadditiontohelpinginadoptionofbestanimalwelfarepracticesforproductionofbetterqualityandmoreprofitablefood.Moreover,itcoverstopicssuchasprevention,control,treatmentofillnessesandcorrectapplicationofpharmaceuticals,medicationsandvaccinesadministeredinaninjectableform.

EMPLOYEESAFETYGRI G4-DMA Occupational health and safety

GuaranteeingemployeehealthandsafetyisadailycommitmentatMinerva,whereforecastsaredonerelatedtoworkingconditionsinthecollectivebargainingagreementsexecutedwithunionsthatrepresentworkerclasses.

InvestmentsaremadeintrainingandtheuseofPersonalProtectiveEquipment(PPE)inordertocomplywithlegalsafetystandardsandmaintainasafeandhealthyworkplace.TheentirestaffisrepresentedbyInternalAccidentPreventionCommissions(ComissõesInternasdePrevençãodeAcidentes–Cipas),madeupofemployeerepresentativeschosenthroughasecretvoteandappointedbytheiremployer.ThemembersofCipasmeetregularlyandpromotespecificeventssuchastheInternalOccupationalAccidentPreventionWeek(Sipat),whichwasintegratedwithSGIWeekin2015(learnmoreonpage94).GRI G4-LA8

Allemployeesarealsorepresentedonformalcommittees,whichhelptomonitorandadviseonoccupationalhealthandsafetyprograms.GRI G4-LA5 | G4-LA8

OCCUPATIONAL HEALTH AND SAFETY INDICATORS GRI G4-LA6

20145

201531

NUMBER OF OCCUPATIONAL ILLNESSES

20145.202

3.3312015

DAYS LOST

20142,69

2,502015

ABSENTEEISM RATE

20142

02015

WORK-RELATED FATALITIES

101

*General indicators GRI G4-LA6 2015 2014 2013

Total investment (BRL) 20.176.131,66 15.752.434,52 1.476.868,81

Hours/man worked 14.367.201,28 16.798.549,60 18.913.625,51

Seriousness Frequency Rate (SFR) 216,87 1.024,02 379,83

Non-justified absences (h) 233.436,31 313.848,66 279.528,45

According to the recommendations of Regulatory Standard NR 04, which requires no breakdown according to gender and region. Minerva will assess the possibility of breaking this information down by gender in future years, considering the geographic location of its units.

* New criteria added in calculating these indicators.

TOTAL INVESTMENT IN OCCUPATIONAL HEALTH AND SAFETY (BRL)

15.752.434,5220142015 20.176.131,66

Performancecharts(dashboards);

Controlofsolidwastegenerationanddisposal;

Controlofchemicalproductsusedinphysical-chemicaltreatmentsystems;

Controlofbiologicalproductsusedintreatmentsystems;

Controlofdailyparametersofsettleablesolidsinthebiologicaltreatmentsystem.

USEOFNATURALRESOURCESGRI G4-DMA Water | G4-DMA Effluents and waste | G4-DMA Products and services | G4-DMA Overall

AllMinervaoperatingunitsareconstantlymonitoredtodefinemeasuresandactionsinanefforttoassurecontinualimprovementandrationaluseofnaturalresources.ThismonitoringisdonebySupervisorsconnectedtotheCorporateEnvironmentDivision,whoreportdatatotheExecutiveBoard,inanefforttosupportcreationofstrategiestoenhanceactivities.Thefollowingarenotableamongtheinformationsupervisedandsenttouppermanagement:

Technicaldataontheunitandwastewatertreatmentsystem;

Environmentallicensinginformation,permissionsforwateruse,dischargeoftreatedliquideffluentsandcompliancewithtechnicalrestrictions;

MonitoringofKeyPerformanceIndicators(KPIs):waterconsumption,generationofeffluents,liquideffluentquality,receivingbodyquality,operationalcostsandrevenues,recoveryofoilsandgreasesinphysical-chemicaltreatmentsystems;

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102

TOTALENVIRONMENTALINVESTMENT(BRL)GRI G4-EN31

3.803.857,02

2.558.059,78

2014

2013

2015 13.391.387,76*

*Newcriteriawereaddedincalculationofenvironmentalinvestments.

MinervamaintainsacorporateEnvironmentalImpactsandAspectsManagementprogram,throughwhichitgatheredinformationfrom100%ofitsunitsin2015.Additionally,thecompanyusessoftwaretomanageandmonitoractionplans,dedicatedtominimizingsignificantenvironmentalinterference.Duringtheyear,campaignswereheldtoreducewaterconsumptionandinvestmentsweremadeinstudiestolowertheuseofthisinput,withouthinderingproduction;analysesweredevelopedtoverifycompliancewithlaws;theRingelmannscalewasusedtomonitorimmediateactionsfocusedonoversightofunitsinrelationtoairemissions;andprogresswasmadeinseparatingwasteforappropriatedisposal.GRI G4-EN12 | G4-EN27

InlinewithanenvironmentalcommitmentandeventhoughproductsarenotrecoveredattheCompany,93,169,146kgofwastewererecycledin2015,1,879,577kgofwhichwaspaper,paperboardandclearplastic.GRI G4-EN28

InvestmentsintheenvironmentalareaduringtheyeartotaledBRL13,391,387.76,gearedtowardsprofessionalservices,payroll,monitoringofairemissionsandothers.GRI G4-EN31

DISTRIBUTION OF ENVIRONMENTAL INVESTMENTS IN 2015 GRI G4-EN31

Costs of waste disposal, treatment of emissions and remediation

Prevention and environmental management

Waste treatment and disposal R$ 3.463.700,96

Environmental education and training

R$ 12.457,99

Expenditures on equipment, maintenance and operational services and materials, in addition to personnel expenses for this purpose

R$ 8.796.546,88

External environmental management services

R$ 1.118.681,93

Total 12.260.247,84 1.131.139,92

WATER GRI G4-EN8

Waterisprimarilyconsumedinproductionandequipmentsterilizationactivities.Modernandefficientequipmentareemployedwhenusingwaterresourcesandleakpreventionactionsarecontinuallydeveloped.Furthermore,theinputqualitycriteriaestablishedbyBrazil’sMinistryofAgriculture,Livestock,andSupplyarefollowed.

Unitsaresuppliedwithsurfacewaterandgroundwaterwhich,priortoindustrialuse,aredulytreatedattheCompany’sownWaterTreatmentStations.Inorderforallemployeestocontributetorationalwateruseactionsandmaintenanceofequipment,managementisdonebyEnvironmentSupervisorsattheindustrialunitsandispassedontofactoryManagers.

Inthesamevein,in2015Minervasettargetstoreduceconsumptionby2%comparedtotheyearbefore,acrossallunits.AcompanywascontractedinMarchtoperformawaterusestudyattheBarretos,JoséBonifácioandPalmeirasdeGoiásunits.Theresultsprovidedbackingforanactionplantooptimizeconsumption,andatPalmeirasdeGoiás,initiativesresultedinusagedroppingfrom3.11m³/headto2.74m³/headfromApriltoMay2015,areductionof11.9%.Theoverallaverageofactionsresultedin22.84%lessconsumptionthaninpreviousmonths.

103

EFFLUENTTREATMENTGRI G4-DMA Effluents and waste

Liquideffluentsdispensedinoperationsaresubjecttophysical,chemicalandbiologicaltreatmentatWastewaterTreatmentStations(EstaçõesdeTratamentodeEfluentes–ETEs),laterundergoingmonitoringbysampletoverifytheefficacyofthesystemandidentifypointsforimprovement.Atunitswheretheseeffluentsareusedforirrigation,thesoilisalsomonitored,asaregroundwaterandbodiesofwaterthatreceivewatergeneratedbyoperations,alwaysinaccordancewithenvironmentallicensingrequirements.

Allunitshaveprimaryphysicalandchemicalandsecondarytreatment.Primarytreatmentincludessiftingsystemsand,atsomeunits,afloatskimmertomechanicallyremovefat,usingatridecanterthatseparatessolids,fatandwater,withsolidsbeingsentforcomposting.

In2015,theCompanybeganthecorporateEffluentManagementprocedure,aimedatdescribingallactivitiesatETEs,inanefforttoguaranteethefinalqualityoftheeffluent.TheentireprimarysystemattheFrigormercIandII,AraguaínaandPalmeirasdeGoiásunitswasalsooverhauled.InJoséBonifácio,thestaticscreenonthegreenlinewasreplacedwithaninternallyfedrotaryscreen,resultinginsolidwastewithalowerrateofhumidityandimprovedavailability,inadditiontoanintermediateeffluentwithalowerrateofsolids.

TOTALWATERDISCHARGE,BROKENDOWNBYQUALITYANDDESTINATIONGRI G4-EN22

TOTAL WATER REMOVED BY SOURCE GRI G4-EN8

Volume (m³/year) 2014 2015

Total certified volume (m³/year) 19.515.534 19.515.534

Groundwater collected (m³/year) 1.333.552 1.105.177

Surface water collected (m³/year) 3.512.398 3.441.977

Total collected in the year (m³) 4.845.950 4.547.154

TREATMENT METHOD

REUSE

WATERQUALITY

DESTINATION

TOTAL VOLUME OF WATER DISCHARGED 3.872.411m³/year

AlleffluentsgeneratedbyMinervaunitsgothroughETEs,includingprimaryandsecondarytreatment.

Atechnicalandeconomicfeasibilitystudyoneffluentreuseisinprogress.In2015,Araguaínareuseditseffluentforfertigation.

Receivingbodyforthefollowingunits:Barretos,CampinaVerde,RolimdeMoura,JoséBonifácio,VárzeaGrande.MunicipalWastewaterTreatmentStation(ETE)–Janaúba.Fertigation/percolationtrench–Araguaína.

Allunitshaveremovedatleast60%ofBOD,pursuanttocurrentlaw.

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104

WASTEDISPOSALActivitiesatMinervaFoodsresultindisposalofseveralkindsofsolidwaste.Eachcategoryofthesematerialshasaspecificdestinationsothattheycanbereused,eliminatedordecontaminated,inordertoleveragesustainableuse.In2015,theCompanystrengthenedadoptionoftheWasteManagementprogram.

Atallunits,anywastesenthasappropriateanddulyfileddocumentationtoprovedisposal,withtheinclusionoftheWasteTransportManifest(WTM),thechecklistofthetruckthatwillperformtransportation,invoiceandcertificateofdisposalandtherespectivelandfilllicenses.

ENERGYANDENERGYEFFICIENCYCalculationofenergyconsumptionismanagedbytheEngineeringarea,whichrequiresthatareaemployeesprovideinformationontheirrespectiveindustrialunitsonamonthlybasis.Inaddition,indicatorssuchasvalue(inBraziliancurrency)perkiloofdebonedproductaremanagedbytheCompany,consideringenergyconsumption.Moreover,MinervaFoodsdoesnothaveasystemgearedtowardsloweringenergyconsumption;however,in2015,aconsultingfirmwascontractedtodevelopaStrategicEnergyEfficiencyPlantoassessitsperformanceandcreateactionstoimproveuseofthisinputandthiswasappliedatsomeindustrialunits.GRI G4-EN6

Someunitsacquireenergyonthefreemarket–Araguaína,Barretos,JoséBonifácio,Mirassold’Oeste,PalmeirasdeGoiásandVárzeaGrande–andothersgenerateindirectenergy,byburningtallowacidresultingfromeffluenttreatment,suchasAraguaínaandPalmeirasdeGoiás.

TOTAL WEIGHT OF WASTE, BROKEN DOWN BY TYPE AND DISPOSAL METHOD GRI G4-EN23

Disposal methodHazardous waste Non-hazardous waste

Kg Waste type Kg Waste type

Recycling None None 92.436.073

Paper/paperboard, clear plastic, mixed plastic, containers and drums, raffia bags, ferrous metals, non-ferrous metals, pallets and rendering plant waste

Composting None None 117.095 Organic cafeteria waste

Recovery, including energy recovery 19.688Batteries, electronic waste, light bulbs, used vegetable oils and other used oils

616.078 Tallow acid

Incineration (mass burning) 41.536

Health service waste, PPE, rags and objects impregnated with chemical products or oils and greases

None None

Landfill NoneToxic chemical product containers

1.188.660 General waste and tridecanter sludge

105

CONSUMPTION OF ELECTRICITY AND ENERGY INTENSITY GRI G4-EN3 | G4-EN5

2013 2014 20152015/2014

(%)

Total electricity consumption (GJ)

543.298,78 644.021,43 691.655,00 7,3963

Rate of energy intensity (GJ/Kg deboned)

0,0015 0,0018 0,0017 -5,5556

BIODIESELMinervaBiodieselusesthebovinetallowfromtheCompany’sunitsasrawmaterial.

In2015,12,727.82m³wereproducedandsoldatauctionsbyBrazil’sNationalOilAgency(AgênciaNacionaldoPetróleo–ANP).MinervaBiodieselalsousescomplementaryrawmaterials,suchassoy,jatrophaandpeanuts,acquiredfrom48producersinthestateofGoiásregisteredwiththeNationalProgramforStrongerFamilyFarming(ProgramaNacionaldeFortalecimentodaAgriculturaFamiliar–Pronaf),withwhichtheCompanydevelopstechnicalassistanceandtrainingactions,contributingtoqualificationandsocialinclusion.Throughthisinitiative,theCompanyhasreceivedSocialFuelSealfromtheMinistryofAgriculturalDevelopment.

Colina−SãoPaulo

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SurfaceWater

3.441.977m3

Groundwater

ofpaper,paperboardandclearplastic

1.105.177m3

INVESTMENTS BRL

13.391.387,76intheenvironmentalarea

VOLUME OF WASTE RECYCLED IN 2015

93.169.146kg

1.879.577kg3.872.411m3/year

DISCHARGING OF EFFLUENTS

WASTEDISPOSAL

WATERCONSUMPTION

EFFLUENTTREATMENT

106

MINERVACOMERCIALIZADORADEENERGIATomanageitsenergymatrix,theCompanybuiltanewbusinessareain2015,responsibleforidentificationofopportunitiestomitigaterisk,cutcosts,enhanceinitiativesandstructurecleanandsustainableenergymatrixesforunitsinBrazilandabroad,practicesthatextendtopartnersandcustomers.

In2016,thisareawillbeformalizedasanewcompany,MinervaComercializadoradeEnergia.Throughout2015,workwasdonetoanalyzetheelectricitycontractprofileattheCompany’s12consumerunitsinBrazil,aprojectwhoseinitiativeswillbeapparentin2016,withsavingsofaroundBRL4millioninelectricitycosts.By2018,accumulatedsavingsforconsumerunitsareprojectedtobearoundBRL20million.Partnerandcustomerawardsforpowersupplyinitiatives,especiallyforsmallandmediumcompaniesthathavenoaccesstothefreeelectricitymarket,arepartofthestrategytostructureapowercompany.

Thenewcompanywillfollowsustainablemanagementprinciples–twofeasibilityprojectsarebeingevaluatedundertheauspicesoftheInternationalFinanceCorporation(IFC):i)anenergycogenerationproject,usingbioreactors;ii)andestablishmentofawindfarmforintegrationwithMinervaenergymatrix.Inthefirststage,generationofcleanenergyresultingfromprojectswillaccountfornearly30%oftheCompany’senergydemandsinBrazil.

NOX, SOX, AND OTHER SIGNIFICANT AIR EMISSIONS BY TYPE GRI G4-EN21

Categories Volume of emissions in kg or multiples Emission sources

NOx 7.52 micrograms per m³ Wood boilers

SOx 15.72 micrograms per m³ Wood boilers

Particulate matter (PM) 126.4 micrograms per m³ Wood boilers

Other standard categories of air emissions identified in regulation

PTS (SP State Decree) – 53.1 micrograms per m³

PTS (Conama 03/90) – 1.6 micrograms per m³

Wood boilers

AIREMISSIONSIn2015,MinervadevelopedaGreenhouseGas(GHG)emissionsinventoryfor2014,inanefforttomonitor,assessandmitigateenvironmentalimpacts.ThestudyfollowedtheinternationalGHGProtocolmethodologyandcoveredallindustrialunitsandtheDistributionCenter,includinginternationalplantsinParaguayandUruguay.WiththeconsolidationoftheSGI,theCompany’sstrategyistotakeaninventoryeverytwoyears.Inaddition,corporateprogramsforenvironmentalmonitoringandmonitoringofairemissionswereadoptedduringtheyearforfixedandmobilesources.GRI G4-EN19

EmissionsfromCompanyunitsareperiodicallymeasuredinordertomanagetheirimpacts,with2015resultsbeingshowninthetablebelow:

Janaúba–MGIndustrialUnit

Page 55: Sustainability Report of 2015

SurfaceWater

3.441.977m3

Groundwater

ofpaper,paperboardandclearplastic

1.105.177m3

INVESTMENTS BRL

13.391.387,76intheenvironmentalarea

VOLUME OF WASTE RECYCLED IN 2015

93.169.146kg

1.879.577kg3.872.411m3/year

DISCHARGING OF EFFLUENTS

WASTEDISPOSAL

WATERCONSUMPTION

EFFLUENTTREATMENT

SAVINGSONELECTRICPOWERCOSTSASOF2016

UPTO2018,PROJECTEDACCUMULATEDSAVINGSFORCONSUMERUNITS

TOTAL PRODUCTION OF UNITS

4million

20million

12.727,82m3

MINERVABIODIESELUSESBEEFTALLOWASARAWMATERIAL

NOX, SOX AND OTHER EMISSIONS

204,34micrograms/m3

691.655,00GJofenergyconsumed

ENERGY EFFICIENCY

MINERVACOMERCIALIZADORADEENERGIA

BIODIESEL

AIREMISSIONS

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110

GENERALSTANDARDDISCLOSURES

INDICATORS PAGE EXTERNAL ASSURANCE

STRATEGYANDANALYSIS

G4-1 33,35 ü

G4-2 40 ü

ORGANIZATIONALPROFILE

G4-3 19 ü

G4-4 25 ü

G4-5 19 ü

G4-6 19 ü

G4-7 19 ü

G4-8 19 ü

G4-9 19 ü

G4-10 76,77,78 ü

G4-11 100%of(direct)employeesarecoveredbycollectivebargainingagreements.

ü

G4-12 85 ü

G4-13 7 ü

G4-14 40 ü

G4-15 85 ü

G4-16 47 ü

GRICONTENTINDEXGRI G4-32

Core “in accordance” option

111

GENERALSTANDARDDISCLOSURESINDICATORS PAGE EXTERNAL ASSURANCE

IDENTIFIEDMATERIALASPECTSANDBOUNDARIES

G4-17 Thelistofentitiesincludedinthefinancialstatementsisavailableat:http://ri.minervafoods.com

ü

G4-18 8 ü

G4-19 13 ü

G4-20 7and8 ü

G4-21 7and8 ü

G4-22

Inthelastreport,inrelationto2014,theminimumwagewasreportedundertheGRIG4-EC5indicatorinrelationtotheyear2015.Thecorrectinformationonthenationalminimumwageineffectfortheyear2014wasBRL724.00.

G4-23 7

STAKEHOLDERENGAGEMENT

G4-24 8 ü

G4-25 8 ü

G4-26 9 ü

G4-27 9 ü

REPORTPROFILE

G4-28 7 ü

G4-29 7 ü

G4-30 7 ü

G4-31 7 ü

G4-32 7,110 ü

G4-33 7 ü

GOVERNANCE

G4-34 49 ü

ETHICSANDINTEGRITY

G4-56 24,52 ü

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112

GRI CONTENT INDEX GRI G4

SPECIFICSTANDARDDISCLOSURES

MATERIAL ASPECT DISCLOSURES ON MANAGEMENT APPROACH AND INDICATORS

PAGE OMISSIONS EXTERNAL ASSURANCE

CATEGORY:ECONOMIC

Economicperformance

G4-DMA 58

G4-EC1 59 ü

G4-EC2 40 ü

G4-EC3 84 ü

G4-EC4 During2015,theCompanydidnotreceiveanykindofgovernmentaid/benefits.

Marketpresence

G4-DMA 80,84

G4-EC5

84|Theminimummonthlywagereportedinthe2014SustainabilityReportwasinrelationto2015.Theminimummonthlywagein2014wasBRL724.00.

ü

G4-EC6 80 ü

CATEGORY:ENVIRONMENTAL

MaterialsG4-DMA 70,92

G4-EN2 TheCompanydoesnotuserecycledinputsinthemanufactureofitsproductsandservices.

Energy

G4-DMA 70,92

G4-EN3 105 ü

G4-EN5 105 ü

G4-EN6 104

Currentlynotavailable.Theamountofenergyreducedwasnotreported.

ü

WaterG4-DMA 70,92,101

G4-EN8 102,103 ü

BiodiversityG4-DMA 70,92

G4-EN12 102 ü

Emissions

G4-DMA 70,92

G4-EN19 106

G4-EN20Minervadoesnotuseozone-depletingsubstancesinitsoperations.

G4-EN21 106 ü

EffluentsandwasteG4-DMA 70,92,103

G4-EN22 103 ü

G4-EN23 104 ü

113

GRI CONTENT INDEX GRI G4

MATERIAL ASPECT DISCLOSURES ON MANAGEMENT APPROACH AND INDICATORS

PAGE OMISSIONS EXTERNAL ASSURANCE

CATEGORY:ENVIRONMENTAL

G4-EN24Therewerenosignificantspillsofanytypeoffuelorhazardous/flammableliquidorchemicalproductsin2015.

G4-EN25

TherewasnomovementofanyhazardouswastebytheCompany;onlyClassIwastewasremoved(58,584kg)andprocessedatspecializedlandfillsasreportedunderG4-EN23.

Productsandservices

G4-DMA 70,92,101

G4-EN27 102 ü

G4-EN28102|Becauseofthespecificityofitsindustry,MinervaFoodsdoesnotreclaimpackaging.

ü

Compliance

G4-DMA 89

G4-EN29OnDecember31,2015,therewerenoindividuallyrelevantenvironmentalactionspendingagainsttheCompanyoritscontrolledcompanies.

OverallG4-DMA 70,101

G4-EN31 102 ü

Supplierenvironmentalassessment

G4-DMA 89

G4-EN32 87 ü

G4-EN33

AlthoughMinervasubmits100%ofitssupplierstoenvironmentalassessments,itisimpossibletopreciselymeasuretheseimpactsontheCompany’sproductionchain.

ü

Environmentalgrievancemechanisms

G4-DMA 70

G4-EN34Noenvironmentalgrievanceswerereceivedthroughformalmechanismsin2015.

CATEGORY:SOCIAL

SUBCATEGORY:LABORPRACTICESANDDECENTWORK

Employment

G4-DMA 75,84

G4-LA1 76 ü

G4-LA2 83 ü

Occupationalhealthandsafety

G4-DMA 89,92,100

G4-LA5 100 ü

G4-LA6 100and101 Partial ü

G4-LA7TherearenoworkerswithahighincidenceorhighriskofdiseasesrelatedtotheiroccupationatMinerva.

G4-LA8 100 ü

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GRI CONTENT INDEX GRI G4

MATERIAL ASPECT DISCLOSURES ON MANAGEMENT APPROACH AND INDICATORS

PAGE OMISSIONS EXTERNAL ASSURANCE

CATEGORY:SOCIAL

SUBCATEGORY:LABORPRACTICESANDDECENTWORK

Trainingandeducation

G4-DMA 80

G4-LA9 81

Currentlynotavailable.Breakdownbygenderandjobcategorynotreported.

ü

G4-LA10 80 ü

G4-LA11 82

Currentlynotavailable.Breakdownbygenderandjobcategorynotreported.

ü

DiversityandequalopportunityG4-DMA 76

G4-LA12 49,78 ü

Equalremunerationforwomenandmen

G4-DMA 84

G4-LA13 84Currentlynotavailable.Basesalarynotreported.

Supplierassessmentforlaborpractices

G4-DMA 89

G4-LA14 87 ü

G4-LA15 87 ü

Laborpracticesgrievancemechanisms

G4-DMA 70

G4-LA16 52

Currentlynotavailable.Therewerenoreportsofgrievancesprocessedandresolved.

ü

SUBCATEGORY:HUMANRIGHTS

Investments

G4-DMA 80,89

G4-HR1 64,89 ü

G4-HR2 82 ü

Non-discriminationG4-DMA 52,89,92

G4-HR3 52 ü

Freedomofassociationandcollectivebargaining

G4-DMA 52

G4-HR4 Nocaseswereregisteredin2015.

115

GRI CONTENT INDEX GRI G4

MATERIAL ASPECT DISCLOSURES ON MANAGEMENT APPROACH AND INDICATORS

PAGE OMISSIONS EXTERNAL ASSURANCE

CATEGORY:SOCIAL

SUBCATEGORY:HUMANRIGHTS

ChildlaborG4-DMA 89,92

G4-HR5 85 ü

ForcedorcompulsorylaborG4-DMA 89,92

G4-HR6 87 ü

SecuritypracticesG4-DMA 52

G4-HR7 52 ü

IndigenousrightsG4-DMA 89,92

G4-HR8 87 ü

AssessmentG4-DMA 52

G4-HR9 52 ü

Supplierhumanrightsassessment

G4-DMA 89

G4-HR10 87 ü

G4-HR11 87 ü

Humanrightsgrievancemechanisms

G4-DMA 70

G4-HR12 52

Currentlynotavailable.Therewerenoreportsofgrievancesprocessedandresolved.

ü

SUBCATEGORY:SOCIETY

Anti-corruption

G4-DMA 52

G4-SO3 52

Currentlynotavailable.TheCompanydoesnotperformriskassessmentsrelatedtocorruption.

G4-SO4 52 ü

G4-SO5 52

UnfaircompetitionG4-DMA 52

G4-SO7 Therewerenooccurrencesofthisnaturein2015.

ComplianceG4-DMA 52,89

G4-SO8 52

Supplierassessmentforimpactsonsociety

G4-DMA 89

G4-SO9 87 ü

G4-SO10 87 ü

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GRI CONTENT INDEX GRI G4

MATERIAL ASPECT DISCLOSURES ON MANAGEMENT APPROACH AND INDICATORS

PAGE OMISSIONS EXTERNAL ASSURANCE

CATEGORY:SOCIAL

SUBCATEGORY:PRODUCTRESPONSIBILITY

Customerhealthandsafety

G4-DMA 92,96

G4-PR1 95and96 ü

G4-PR2

AlthoughtheCompanycomplieswithallestablishedstandardsandlaws,in2015Minervahadoccurrencesrelatedtovoluntarycodes,whichissomecasesresultedinwarnings.

ü

G4-FP5 97 Partial ü

Productandservicelabelling

G4-DMA 95

G4-PR3 95 ü

G4-PR4

Ofcasesofnon-compliancethatoccurredin2015,someregardednon-compliancewithvoluntarycodesandothersresultedinfinesand/orwarnings.However,theCompanycomplieswithallestablishedstandardsandlaws.

ü

G4-PR5 95 Partial

CustomerprivacyG4-DMA 52

G4-PR8 52

ComplianceG4-DMA 52

G4-PR9 Therewerenooccurrencesofthisnaturein2015.

FOODPROCESSINGSECTORSUPPLEMENT

Procurement/SourcingPractices

G4-DMA 97

G4-FP1 97 ü

G4-FP2 97 ü

Labor/ManagementRelations

G4-DMA 75

G4-FP3TheCompanydoesnotaccountforworkingtimelostduetoindustrialdisputes,strikesand/orlock-outs.

CustomerHealthandSafetyG4-DMA

FP5 95 Partial ü

AnimalWelfare

G4-DMA 97

G4-FP9 97 ü

G4-FP11 97 ü

G4-FP13

In2015,wehadincidentsthatoccurredduringtransportofanimals,spraybath,unloading,managementincorralsand/orduringstunning;however,evenwiththeseincidents,thecompanycomplieswithalllaws.

ü

117

INTRODUCTIONWehavebeenengagedbyMinervaS.A.(“Minerva”)tosubmitourlimitedassurancereportontheinformationcontainedinthe2015MinervaSustainabilityReport,relativetotheyearendedonDecember31,2015.

RESPONSIBILITIESOFTHECOMPANY’SMANAGEMENTTheManagementatMinervaisresponsibleforpreparingandadequatelypresentingtheinformationcontainedinthe2015SustainabilityReport,pursuanttothe“Core”reportingoptionoftheguidelinesoftheGlobalReportingInitiative(GRI)-G4(version4.0)andforinternalcontrolsthatManagementdeterminesnecessarytoenablepreparationofthisinformationfreefrommaterialmisstatement,regardlessofwhetherduetofraudorerror.

INDEPENDENTAUDITORS’RESPONSIBILITYOurresponsibilityistoexpressaconclusionontheinformationintheMinerva2015SustainabilityReport,basedonthelimitedassuranceworkconductedaccordingtoIbraconTechnicalNotice(CT)no.07/2012,approvedbyBrazil’sFederalAccountingBoard(CFC)andpreparedbasedonNBCTO3000-AssuranceEngagementsOtherThanAuditsandReviews,issuedbyBrazil’sFederalAccountingBoard(CFC),whichisequivalenttointernationalstandardISAE3000,issuedbytheInternationalFederationofAccountants,applicabletonon-historicalinformation.

LIMITEDASSURANCEREPORTISSUEDBYINDEPENDENTAUDITORS

TotheDirectorsandotherstakeholdersofMinervaS.A.SãoPaulo-SP

Thesestandardsrequirecompliancewithethicaldemands,includingrequirementsofindependence,andthatworkbeexecutedwiththegoalofgaininglimitedassurancethattheinformationcontainedintheMinerva2015SustainabilityReport,takenasawhole,isfreeofmaterialmisstatements.

AlimitedassuranceengagementconductedaccordingtoNBCTO3000(ISAE3000)consistsmostlyofquestioningtheCompany’smanagementandotherCompanyprofessionalsinvolvedinpreparingtheinformationcontainedintheMinerva2015SustainabilityReport,aswellasapplicationofanalyticproceduresforfindingevidencethatallowsustomakelimitedassuranceconclusionsregardingtheinformationconsideredasawhole.Alimitedassuranceengagementalsorequirestheexecutionofadditionalprocedures,whentheindependentauditorismadeawareofmattersthatleadhimtobelievethattheinformationcontainedintheMinerva2015SustainabilityReport,consideredasawhole,maypresentmaterialmisstatements.

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SCOPEANDLIMITATIONSTheproceduresappliedinalimitedassuranceengagementaresubstantiallylessdetailedthanthoseappliedinanassuranceengagementaimedatissuinganopinionontheinformationcontainedintheMinerva2015SustainabilityReport.

Therefore,wewereunabletoobtainassurancethatwewouldbecomeawareofallmattersthatwouldbeidentifiedinanassuranceengagementwheretheobjectiveistoissueanopinion.Ifwehadperformedanengagementwiththeobjectiveofissuinganopinion,wemighthaveidentifiedothermattersandpossiblemisstatementsthatmayexistintheinformationcontainedintheMinerva2015SustainabilityReport.Accordingly,wedonotexpressanopiniononthisinformation.

Non-financialdataaresubjecttomoreinherentlimitationsthanfinancialdata,giventhenatureanddiversityofthemethodsusedtodetermine,calculateorestimatethesedata.Qualitativeinterpretationsofmateriality,relevanceandaccuracyofthedataaresubjecttoindividualassumptionsandjudgments.Furthermore,ourengagementcoveredneitherdatareportedinpriorperiodsnorfutureprojectionsandtargets.

CONCLUSIONBasedontheproceduresperformed,describedinthisreport,nothinghascometoourattentionthatcausesustobelievethattheinformationcontainedintheMinerva2015SustainabilityReport,relativetotheyearendingonDecember31,2015,hasnotbeencompiled,inallmaterialrespects,accordingtotheguidelinesofversionG4oftheGRI(GlobalReportingInitiative),“Core”reportingoption,andaccordingtotherecordsandfilesthatservedasthebasisforitspreparation.

SãoPaulo,July12,2016.

BDO RCS Auditores Independentes Brazilian Regional Accounting Board (CRC) 2 SP 013846/O-1

Mauro de Almeida Ambrósio São Paulo Regional Accounting Board (CRC 1 SP) Accountant 199692/O-5

Viviene Alves Bauer São Paulo Regional Accounting Board (CRC 1 SP) Accountant 253472/O-2

TheproceduresselectedarebasedonourunderstandingofaspectsrelatedtocompilationandpresentationoftheinformationcontainedintheMinerva2015SustainabilityReportandonothercircumstancesoftheengagementandourconsiderationregardingtheareaswherematerialmisstatementsmayexist.Proceduresincluded:

(a) Planningofwork,consideringtherelevance,volumeofquantitativeandqualitativeinformationandoperationalandinternalcontrolsystemsthatservedasthebasisforpreparingtheinformationcontainedintheMinerva2015SustainabilityReport,relativetotheperiodofJanuary1toDecember31,2015;

(b) Understandingthemethodologyforcalculationsandproceduresforcompilingindicatorsthroughinterviewswiththemanagersresponsibleforpreparinginformation;

(c) ApplicationofanalyticalproceduresconcerningquantitativeinformationwithinquiriesregardingthequalitativeinformationanditscorrelationwiththeindicatorsreportedintheinformationcontainedintheMinerva2015SustainabilityReport;and

(d) Comparisonoffinancialindicatorswithaccountingstatementsand/oraccountingrecords.

ThelimitedassuranceengagementalsoincludedadherencetothepreparatoryguidelinesandcriteriaforSustainabilityReportscontainedinversionG4oftheGRIstandard,applicabletopreparationoftheinformationcontainedintheMinerva2015SustainabilityReport.

Webelievethattheevidencefoundinourengagementissufficientandappropriatetoprovideabasisforourlimitedassuranceconclusion.

GENERAL COORDINATION: Minerva S.A.

GENERAL COUNSEL: Flávia Ribeiro

HUMAN RESOURCES AND COMMUNICATIONS DEPARTMENT: Odoardo Carsughi, Denise Rocha and Larissa Matos

SUSTAINABILITY DIVISION: Taciano Custódio, Wemerson Lopes and Camila Ito

EDITORIAL PRODUCTION: TheMediaGroup and KMZ Conteúdo

TRANSLATION: Gama Traduções

PHOTOS: Claudio Lacerda

DESIGN: F&Q Brasil

CREATIVE DIRECTOR: Paschoal Fabra Neto, Emília Ogata and Oadir Gualtieri

ACCOUNT MANAGERS: Fernando Quinteiro and Raquel Álvares Coelho

DESIGNERS: Cristian de Felice, Everaldo Figueira and Lucila Issa

EDITOR: TheMediaGroup

PRODUCTION: Anderson Lima

AUDITOR: BDO RCS Auditores Independentes

9. CREDITS

INTEGRITY IN GOVERNANCE PRACTICES; COMMITMENT TO HUMAN CAPITAL;

RESPONSIBLE DECISION-MAKING; INITIATIVE IN ADVANCING THE MEAT

INDUSTRY IN BRAZIL AND LATIN AMERICA; COOPERATION IN RELATIONSHIPS;

SIMPLICITY IN ACTIONS; AND, FINALLY, THE STRENGTHENING OF EVERY LINK AT

MINERVA THROUGH THE COMPANY’S DETERMINATION ARE PART OF MINERVA

FOODS’ WAY OF WORKING.

MINERVA FOODS IS BASED ON VALUES THAT HAVE MARKED A PATH OF

TRUST IN ITS ACTIVITIES.

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Headquarters: Av. Antônio Manso Bernardes, s/n°, Rotatória Família Vilela de Queiroz - Barretos - SP – Zip code 14781-545 - Phone: +55 (17) 3321-3355 Street Leopoldo Couto de Magalhães Júnior, 758 - conj. 82 - Itaim Bibi - São Paulo - SP - Zip code 04542-000 - Phone: +55 (11) 3074-2444

minervafoods.com

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