1. Sadia and Perdigao A Brasilian Food Superpower

2. Mandate Strategic RationaleValuationImplementation How should Perdigao approach the merger with Sadia Moving ForwardStrategic RationaleValuation

3. Recommendation MandateStrategic RationaleValuationImplementation Offer a swap ratio of 0.27 shares per Common Sadia share Offer swap ratio of 0.22 per NC and Preferred share Will result in first year accretion of $1.81

4. Rationale

5. Post-Merger Snapshot MandateStrategic RationaleValuationImplementation Perdigao (Now) EBITDA of Player if the agribusiness Select product segments Brazil Foods SA (Post- Merger) EBITDA of Dominate leader in Market Compete across varied product segments Take advantage of scale

6. Brazil: Growth in Agribusiness MandateStrategic RationaleValuationImplementation Brazil is the dominate agribusiness environment Lower input costs Specialized Labour & climate Conducive Exchange rate Increasing World Consumption Poultry and Pork (8%) - Beef (4%) Scale is the key success factor Very competitive and concentrated industry There is a growing Food industry with a focus on scale

7. The Benefits of the Merger MandateStrategic RationaleValuationImplementation Dominate across several segment Widen product offering Leverage Sadia’s brand power Brazil Foods becomes the Market Leader 3 Billion in synergies Lower sales expense and SG&A expenses Cost savings from distribution and production Take advantage of scale Inspire sense of national pride Ability to efficiently on the international level Stave off foreign competition National Champion A merger would create a leading company for Brazil

8. Why is ‘Now’ the Ideal Time? MandateStrategic RationaleValuationImplementation Avoid Foreign Bidders Lower amount of buyers‘First Mover’ advantage on Sadia Prices are low due to the financial crises Low amount of biddersPoor financing conditions for M&A Sadia is in a weak position On the brink of bankruptcyLosses due to poor hedging Now is the ideal time to merge to have the best return

9. The Decision to Merge MandateStrategic RationaleValuationImplementation Become Market Leader Capitalize on Scale Sadia in a weak position Merge Now

10. Valuation

11. Valuation Overview MandateStrategic RationaleValuationImplementation Pro Forma Accretion/Dilution Valuation DCFShare Swap Ration Projections Sadia Income StatementSadia Cash Flow

12. Sadia Standalone MandateStrategic RationaleValuationImplementation Interest expenses creates a drag on Sadia earnings

13. Sadia Standalone – Cash Flow MandateStrategic RationaleValuationImplementation Sadia will be hard pressed to finance debt repayments

14. Valuation – Sadia WACC MandateStrategic RationaleValuationImplementation Sadia WACC estimated to be roughly 10.8%

15. Valuation – Sadia DCF MandateStrategic RationaleValuationImplementation D&A assumption is adjusted to reflect lower capital spending

16. Valuation – Swap Ratio MandateStrategic RationaleValuationImplementation Total Share issuance of roughly 160 million

17. Proforma MandateStrategic RationaleValuationImplementation Very accretive deal for all shareholders

18. Proforma Debt MandateStrategic RationaleValuationImplementation Very accretive deal for all shareholders

19. Proforma Cash Flow MandateStrategic RationaleValuationImplementation Merged company will be able to support debt repayment

20. Implementation

21. Spin-off Regulatory optionSecondary beneficial option Derivatives Control measuresForward contracts for foreign debt Share Swap Swap ratioControlling parties MandateStrategic RationaleValuationImplementation

22. Timeline MandateStrategic RationaleValuationImplementation Regulators are the deal breaker

23. Derivative Controlling measures Control is limited to 10% above/below the 6 months export amount Forward contracts for debt R$ 5,114.7M (Saida)à R$ 4,139 M (Perdigao) Total debt 13,914 66% is will enter foreign forwards contracts Major unpredictable fluctuations in inflation and currency rates are protected MandateStrategic RationaleValuationImplementation

24. Regulatory spin off MandateStrategic RationaleValuationImplementation Before: 8956.7 – 35% of revenue After 7371.7 – 29% Target Domestic and frozen Poultry 12% of Revenues 1,463 Big in exports Pork /beef and others Targeting domestic will satisfy regulators

25. Ownership Structure Existing Perdigao shareholders will own 56% of the Merged Company MandateStrategic RationaleValuationImplementation

26. Conclusion Thank you MandateStrategic RationaleValuationImplementation