# EDGAR Filing Document

**Accession Number:** 0001122491
**File Stem:** 0001292814-23-000639
**Filing Date:** 2023-3
**Character Count:** 443760
**Document Hash:** 2eea4c584fcbf28db577c0d9dde21504
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001292814-23-000639.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001292814-23-000639

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 32

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BRF S.A.
- **CENTRAL INDEX KEY:** 0001122491
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEAT PACKING PLANTS [2011]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** D5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15148
- **FILM NUMBER:** 23688450

**BUSINESS ADDRESS:**
- **STREET 1:** 1400 RUA HUNGRIA 5TH FLOOR
- **STREET 2:** JARDIM EUROPA 01455 000
- **CITY:** SAO PAULO SP BRAZIL
- **STATE:** D5
- **ZIP:** 00000
- **BUSINESS PHONE:** 551123225061

**MAIL ADDRESS:**
- **STREET 1:** 8501 AV. DAS NACOES UNIDAS 1ST FLOOR
- **STREET 2:** PINHEIROS 05425 070 SAO PAULO SP
- **CITY:** BRAZIL
- **STATE:** D5
- **ZIP:** 00000

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BRF-BRASIL FOODS S.A.
- **DATE OF NAME CHANGE:** 20090708

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PERDIGAO SA
- **DATE OF NAME CHANGE:** 20000823

**FORM 6-K<br> U.S. SECURITIES AND EXCHANGE COMMISSION**<br> **Washington, D.C. 20549**

**REPORT OF FOREIGN PRIVATE ISSUER<br> PURSUANT TO RULE 13a-16 OR 15d-16 OF THE<br> SECURITIES EXCHANGE ACT OF 1934**

**dated February 28, 2023**

**Commission File Number 1-15148**

**BRF S.A.**<br> (Exact Name as Specified in its Charter)

**N/A**<br> (Translation of Registrant's Name)

**8501, Av. das Naçoes Unidas, 1st Floor**<br> **Pinheiros - 05425-070-São Paulo – SP, Brazil**<br> (Address of principal executive offices) (Zip code)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ⌧ Form 40-F □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T<br> Rule 101(b)(1):<u> </u>

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T<br> Rule 101(b)(7):<u> </u>

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes □ No ⌧

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

\* \* \*

This material includes certain forward-looking statements that are based principally on current expectations and on projections of future events and financial trends that currently affect or might affect the Company's business, and are not guarantees of future performance. These forward-looking statements are based on management's expectations, which involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the Company's control and any of which could cause actual financial condition and results of operations to differ materially fom those set out in the Company's forward-looking statements. You are cautioned not to put undue reliance on such forward-looking statements. The Company undertakes no obligation, and expressly disclaims any obligation, to update or revise any forward-looking statements. The risks and uncertainties relating to the forward-looking statements in this Report on Form 6-K, including Exhibit 1 hereto, include those described under the captions "Forward-Looking Statements" and "Item 3. Key Information — D. Risk Factors" in the Company's annual report on Form 20-F for the year ended December 31, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: February 28, 2023 |  |  |  |
|  | BRF S.A. | BRF S.A. | BRF S.A. |
|  | By: | /s/ Fabio Luis Mendes Mariano | /s/ Fabio Luis Mendes Mariano |
|  |  | Name: | Fabio Luis Mendes Mariano |
|  |  | Title: | Chief Financial and Investor Relations Officer<br>|

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** | **Description of Exhibit**<br>|
| [1](ex99-1.htm) | [FINANCIAL STATEMENTS](ex99-1.htm) |

---

## Exhibit 99.1

![](brfitr4q226k_001.jpg)

**INDEX**

---

| | |
|:---|:---|
| [STATEMENTS OF FINANCIAL POSITION](#a_001) | 4 |
| [STATEMENTS OF INCOME (LOSS)](#a_002) | 5 |
| [STATEMENTS OF COMPREHENSIVE INCOME (LOSS)](#a_003) | 6 |
| [STATEMENTS OF CHANGES IN EQUITY](#a_004) | 7 |
| [STATEMENTS OF CASH FLOWS](#a_005) | 8 |
| [STATEMENTS OF VALUE ADDED](#a_006) | 9 |
| [MANAGEMENT REPORT](#a_048) | 10 |
| [1. COMPANY'S OPERATIONS](#a_007) | 38 |
| [2. BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS](#a_008) | 43 |
| [3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](#a_009) | 45 |
| [4. CASH AND CASH EQUIVALENTS](#a_010) | 52 |
| [5. MARKETABLE SECURITIES](#a_011) | 52 |
| [6. TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES](#a_012) | 53 |
| [7. INVENTORIES](#a_013) | 55 |
| [8. BIOLOGICAL ASSETS](#a_014) | 57 |
| [9. RECOVERABLE TAXES](#a_015) | 59 |
| [10. DEFERRED INCOME TAXES](#a_016) | 62 |
| [11. JUDICIAL DEPOSITS](#a_017) | 65 |
| [12. INVESTMENTS](#a_018) | 65 |
| [13. PROPERTY, PLANT AND EQUIPMENT](#a_019) | 67 |
| [14. INTANGIBLE ASSETS](#a_020) | 71 |
| [15. LOANS AND BORROWINGS](#a_021) | 74 |
| [16. TRADE ACCOUNTS PAYABLE](#a_022) | 79 |
| [17. SUPPLY CHAIN FINANCE](#a_023) | 79 |
| [18. LEASES](#a_024) | 80 |
| [19. SHARE-BASED PAYMENT](#a_025) | 83 |
| [20. EMPLOYEES BENEFITS PLANS](#a_026) | 84 |
| [21. PROVISION FOR TAX, CIVIL AND LABOR RISKS](#a_027) | 92 |
| [22. EQUITY](#a_028) | 94 |
| [23. EARNINGS (LOSS) PER SHARE](#a_029) | 96 |
| [24. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT](#a_030) | 97 |
| [25. SEGMENT INFORMATION](#a_031) | 112 |
| [26. NET SALES](#a_032) | 114 |
| [27. OTHER OPERATING INCOME (EXPENSES), NET](#a_033) | 115 |
| [28. FINANCIAL INCOME (EXPENSES), NET](#a_034) | 115 |
| [29. STATEMENT OF INCOME BY NATURE](#a_035) | 116 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 2

---

| | |
|:---|:---|
| [30. RELATED PARTIES](#a_036) | 117 |
| [31. GOVERNMENT GRANTS](#a_037) | 120 |
| [32. COMMITMENTS](#a_038) | 120 |
| [33. INSURANCE COVERAGE – CONSOLIDATED](#a_039) | 120 |
| [34. TRANSACTIONS THAT DO NOT INVOLVE CASH](#a_040) | 121 |
| [35. EVENTS AFTER THE REPORTING PERIOD](#a_041) | 121 |
| [36. APPROVAL OF THE FINANCIAL STATEMENTS](#a_042) | 122 |
| [INDEPENDENT AUDITORS' REPORT ON INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS](#a_043) | 123 |
| [OPINION OF THE FISCAL COUNCIL](#a_044) | 127 |
| [SUMMARIZED ANNUAL REPORT OF THE AUDIT AND INTEGRITY COMMITTEE](#a_045) | 127 |
| [STATUTORY AUDIT AND INTEGRITY COMMITTEE OPINION](#a_046) | 129 |
| [OPINION OF EXECUTIVE BOARD ON THE CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT](#a_047) | 131 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 3

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF FINANCIAL POSITION**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |  |  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| **ASSETS** | **Note** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **LIABILITIES** | **Note** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **CURRENT ASSETS** |  |  |  |  |  | **CURRENT LIABILITIES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 4 | **3984071** | 4633816 | **8130929** | 7528820 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | 15 | **3379835** | 2790926 | **3879874** | 3203068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 5 | **364543** | 324771 | **418373** | 346855 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | 16 | **11212469** | 10440754 | **12735628** | 11701996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 6 | **6022298** | 7202530 | **4187756** | 4039155 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | 17 | **1393137** | 2237975 | **1393137** | 2237975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable | 6 | **27351** | 68001 | **27351** | 68001 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | 18 | **521544** | 364470 | **676864** | 471956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7 | **6107041** | 7403503 | **8660891** | 9654870 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll, related charges and employee profit sharing |  | **679097** | 810960 | **720799** | 900394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Biological assets | 8 | **3003258** | 2786692 | **3151551** | 2899921 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable |  | **268666** | 246744 | **522846** | 454038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoverable taxes | 9 | **931093** | 881927 | **1229272** | 976133 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 24 | **78276** | 325430 | **82468** | 327443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoverable income taxes | 9 | **85856** | 29784 | **173596** | 71762 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for tax, civil and labor risks | 21 | **863313** | 956193 | **867294** | 959132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 24 | **120865** | 132498 | **120865** | 134551 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits | 20 | **49445** | 42097 | **64367** | 54354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash |  | **-** | 24963 | **-** | 24963 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advances |  | **5825** | 22784 | **75832** | 136182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses |  | **84680** | 205982 | **109716** | 227354 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from related parties | 30 | **8655905** | 12393604 | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances |  | **60707** | 63551 | **187342** | 173325 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities |  | **904298** | 335103 | **1278830** | 778751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | **-** | 5000 | **21909** | 16628 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets |  | **64608** | 55147 | **84795** | 80785 |  |  |  |  |  |  |
| Total current assets |  | **20856371** | 23818165 | **26504346** | 26243123 | Total current liabilities |  | **28011810** | 30967040 | **22297939** | 21225289 |
| **NON-CURRENT ASSETS** |  |  |  |  |  | **NON-CURRENT LIABILITIES** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**LONG-TERM RECEIVALBLES** |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | 15 | **17007023** | 19320254 | **19637126** | 22252962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 5 | **15505** | 15438 | **406402** | 447413 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | 16 | **7459** | 8718 | **7459** | 12628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | 6 | **5059** | 5372 | **5307** | 5810 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | 18 | **2105419** | 1803853 | **2368070** | 2007290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable | 6 | **11092** | 29168 | **11092** | 29168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable |  | **96666** | 130565 | **97735** | 132195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoverable taxes | 9 | **4921772** | 4765453 | **4926945** | 4780096 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for tax, civil and labor risks | 21 | **505863** | 517522 | **548243** | 558500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoverable income taxes | 9 | **233289** | 194979 | **244899** | 206355 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 10 | **-** |  | **111463** | 23710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 10 | **2476334** | 2885387 | **2566461** | 2941270 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities with related parties | 30 | **49367** | 45921 | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Judicial deposits | 11 | **441751** | 545631 | **450676** | 550319 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee benefits | 20 | **297175** | 361356 | **456945** | 498231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Biological assets | 8 | **1558349** | 1367013 | **1649133** | 1414482 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 24 | **174699** | 41861 | **174699** | 41861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | 24 | **10283** | 10804 | **10283** | 10804 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities |  | **261138** | 251512 | **331899** | 325098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash |  | **27515** | 1 | **89717** | 1 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets |  | **158216** | 70228 | **162628** | 76757 |  |  |  |  |  |  |
| Total long-term receivables |  | **9859165** | 9889474 | **10523543** | 10462475 | Total non-current liabilities |  | **20504809** | 22481562 | **23733639** | 25852475 |
|  |  |  |  |  |  | **EQUITY** | 22 |  |  |  |  |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital |  | **12835915** | 12460471 | **12835915** | 12460471 |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital reserves |  | **2338476** | 141834 | **2338476** | 141834 |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other equity transactions |  | **(77825)** | (67531) | **(77825)** | (67531) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 12 | **13270368** | 13269948 | **101064** | 7113 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated losses |  | **(2363073)** | (2132230) | **(2363073)** | (2132230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 13 | **12548338** | 11723211 | **14290884** | 13040862 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury shares |  | **(109727)** | (127286) | **(109727)** | (127286) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 14 | **3252385** | 3210336 | **6434610** | 6149814 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  | **(1353758)** | (1812726) | **(1353758)** | (1812726) |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attributable to controlling shareholders |  | **11270008** | 8462532 | **11270008** | 8462532 |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | **-** | - | **552861** | 363091 |
| Total non-current assets |  | **38930256** | 38092969 | **31350101** | 29660264 | Total equity |  | **11270008** | 8462532 | **11822869** | 8825623 |
| **TOTAL ASSETS** |  | **59786627** | 61911134 | **57854447** | 55903387 | **TOTAL LIABILITIES AND EQUITY** |  | **59786627** | 61911134 | **57854447** | 55903387 |

---

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 4

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF INCOME (LOSS)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | <br>**Note** | **12.31.22** | 12.31.21 (1) | **12.31.22** | 12.31.21 (1) |
| **CONTINUING OPERATIONS** |  |  |  |  |  |
| **NET SALES** | 26 | **46630860** | 42118478 | **53805028** | 48343305 |
| Cost of sales | 29 | **(39457998)** | (33810019) | **(45672376)** | (38650772) |
| **GROSS PROFIT** |  | **7172862** | 8308459 | **8132652** | 9692533 |
| **OPERATING INCOME (EXPENSES)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling expenses | 29 | **(6265554)** | (5162751) | **(7067148)** | (6058250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 29 | **(383527)** | (542602) | **(644827)** | (822960) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on trade receivables | 6 | **(10916)** | (9347) | **(12772)** | (12799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating income (expenses), net | 27 | **(563276)** | 129211 | **(545270)** | 211263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from associates and joint ventures | 12 | **(840395)** | 867505 | **1076** |  |
| **INCOME (LOSS) BEFORE FINANCIAL RESULTS AND INCOME TAXES** | **INCOME (LOSS) BEFORE FINANCIAL RESULTS AND INCOME TAXES** | **(890806)** | 3590475 | **(136289)** | 3009787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial income |  | **955751** | 462847 | **1082935** | 537736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial expenses |  | **(3555695)** | (3069588) | **(3585765)** | (3331615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange and monetary variations |  | **588602** | (1108816) | **(165925)** | (250696) |
| **FINANCIAL INCOME (EXPENSES), NET** | **28** | **(2011342)** | (3715557) | **(2668755)** | (3044575) |
| **LOSS BEFORE TAXES** |  | **(2902148)** | (125082) | **(2805044)** | (34788) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 10 | **(213307)** | 624467 | **(285634)** | 552102 |
| **INCOME (LOSS) FROM CONTINUING OPERATIONS** |  | **(3115455)** | 499385 | **(3090678)** | 517314 |
| **LOSS FROM DISCONTINUED OPERATIONS** | 1.2 | **(50948)** | (79930) | **(50948)** | (79930) |
| **INCOME (LOSS) FOR THE YEAR** |  | **(3166403)** | 419455 | **(3141626)** | 437384 |
| **Net Income (loss) from Continuing Operation Attributable to** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Controlling shareholders** |  | **(3115455)** | 499385 | **(3115455)** | 499385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-controlling interest** |  | **-** |  | **24777** | 17929 |
|  |  | **(3115455)** | 499385 | **(3090678)** | 517314 |
| **Net Loss From Discontinued Operations Attributable to** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Controlling shareholders** |  | **(50948)** | (79930) | **(50948)** | (79930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Non-controlling interest** |  | **-** |  | **-** |  |
|  |  | **(50948)** | (79930) | **(50948)** | (79930) |
| **INCOME (LOSS) PER SHARE FROM CONTINUED OPERATIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average shares outstanding - basic** |  |  |  | **1052606000** | 807929481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) per share - basic** | 23 |  |  | **(2.96)** | 0.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average shares outstanding - diluted** |  |  |  | **1052606000** | 808678648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) per share - diluted** | 23 |  |  | **(2.96)** | 0.62 |
| **LOSS PER SHARE FROM DISCONTINUED OPERATIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average shares outstanding - basic** |  |  |  | **1052606000** | 807929481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Losse per share - basic** | 23 |  |  | **(0.05)** | (0.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average shares outstanding - diluted** |  |  |  | **1052606000** | 807929481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Losse per share - diluted** | 23 |  |  | **(0.05)** | (0.10) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts of freight and port expenses in intra-group transactions were
subject to an immaterial classification error correction (note 3).

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 5

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | <br>**Note** | **12.31.22** | 31.12.21 | **12.31.22** | 31.12.21 |
| **Income (loss) for the year** |  | **(3166403)** | 419455 | **(3141626)** | 437384 |
| **Other comprehensive income (loss), net of taxes** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on foreign currency translation of foreign operations |  | **49240** | (386542) | **96523** | (403475) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on net investment hedge |  | **87929** | (96555) | **87929** | (96555) |
| &nbsp;&nbsp;&nbsp;Cash flow hedges – effective portion of changes in fair value | 24 | **50225** | (119482) | **49292** | (121303) |
| &nbsp;&nbsp;&nbsp;Cash flow hedges – reclassified to profit or loss | 24 | **226290** | (26201) | **226290** | (26201) |
| **Items that are or may be reclassified subsequently to profit or loss** |  | **413684** | (628780) | **460034** | (647534) |
| &nbsp;&nbsp;&nbsp;Equity investments measured at FVTOCI (1) - changes in fair value | 5 | **-** | 26030 | **-** | 26030 |
| &nbsp;&nbsp;&nbsp;Actuarial gains on pension and post-employment plans | 20 | **61293** | 131168 | **44725** | 130671 |
| **Items that will not be reclassified to profit or loss** |  | **61293** | 157198 | **44725** | 156701 |
| **Comprehensive income (loss) for the year** |  | **(2691426)** | (52127) | **(2636867)** | (53449) |
| **Attributable to** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Controlling shareholders** |  | **(2691426)** | (52127) | **(2691426)** | (52127) |
| &nbsp;&nbsp;&nbsp;**Non-controlling interest** |  | - | - | **54559** | (1322) |
|  |  | **(2691426)** | (52127) | **(2636867)** | (53449) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) FVTOCI: Fair Value Through Other Comprehensive Income.

 

Items above are stated net of income taxes and the related taxes are disclosed in note 10.

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 6

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF CHANGES IN EQUITY**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** | **Attributed to controlling shareholders** |
|  |  |  |  |  | **Other comprehensive income (loss)** | **Other comprehensive income (loss)** | **Other comprehensive income (loss)** | **Other comprehensive income (loss)** |  |  |  |  |
| | **Capital** | **Capital reserves** | **Other equity transactions** | **Treasury shares** | **Accumulated foreign currency translation adjustments** | **Gains (losses) on marketable securities at FVTOCI (2)** | **Gains (losses) on cash flow hedge** | **Actuarial gains (losses)** | **Accumulated losses** | **Total equity** | **Non-controlling interest** | **Total shareholders' equity<br> (consolidated)** |
| **BALANCES AT DECEMBER 31, 2020** | **12460471** | **141834** | **246** | **(123938)** | **(678969)** | **7016** | **(438221)** | **(188627)** | **(2594028)** | **8585784** | **227750** | **8813534** |
| **Comprehensive income (loss) (1)** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains (losses) on foreign currency translation of foreign operations |  |  |  |  | (386542) |  |  |  |  | **(386542)** | (16933) | **(403475)** |
| &nbsp;&nbsp;&nbsp;Loss on net investment hedge |  |  |  |  | (96555) |  |  |  |  | **(96555)** |  | **(96555)** |
| &nbsp;&nbsp;&nbsp;Marketable securities at FVTOCI (2) - changes in fair value |  |  |  |  |  | 26030 |  |  |  | **26030** |  | **26030** |
| &nbsp;&nbsp;&nbsp;Unrealized losses in cash flow hedge |  |  |  |  |  |  | (145683) |  |  | **(145683)** | (1821) | **(147504)** |
| &nbsp;&nbsp;&nbsp;Actuarial losses on pension and post-employment plans |  |  |  |  |  |  |  | 131168 |  | **131168** | (497) | **130671** |
| **Income for the year** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | 419455 | **419455** | 17929 | **437384** |
| **SUB-TOTAL COMPREHENSIVE INCOME (LOSS)** | - | - | - | - | **(483097)** | **26030** | **(145683)** | **131168** | **419455** | **(52127)** | **(1322)** | **(53449)** |
| Marketable securities at FVTOCI (2) - realized gain |  |  |  |  |  | (33046) |  |  | 33046 | **-** |  | **-** |
| Employee benefits remeasurement - defined benefit |  |  |  |  |  |  |  | (9297) | 9297 | **-** |  | **-** |
| &nbsp;&nbsp;&nbsp;Dividends |  |  |  |  |  |  |  |  |  | **-** | (80) | **(80)** |
| Share-based payments |  |  | (8762) | (3348) |  |  |  |  |  | **(12110)** |  | **(12110)** |
| Acquisition of non-controlling interests |  |  | (79673) |  |  |  |  |  |  | **(79673)** | (157918) | **(237591)** |
| Write-off of put option held by minority shareholders |  |  | 20658 |  |  |  |  |  |  | **20658** | 294661 | **315319** |
| **BALANCES AT DECEMBER 31, 2021** | **12460471** | **141834** | **(67531)** | **(127286)** | **(1162066)** | **-** | **(583904)** | **(66756)** | **(2132230)** | **8462532** | **363091** | **8825623** |
| Monetary correction by Hyperinflation | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **216193** | **216193** | **135260** | **351453** |
| **Comprehensive income (loss) (1)** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains on foreign currency translation of foreign operations | **-** | **-** | **-** | **-** | **49240** |  |  |  |  | **49240** | **47283** | **96523** |
| &nbsp;&nbsp;&nbsp;Gain on net investment hedge | **-** | **-** | **-** | **-** | **87929** |  |  |  |  | **87929** | **-** | **87929** |
| &nbsp;&nbsp;&nbsp;Unrealized gains in cash flow hedge | **-** | **-** | **-** | **-** | **-** |  | **276515** |  |  | **276515** | **(933)** | **275582** |
| &nbsp;&nbsp;&nbsp;Actuarial gains on pension and post-employment plans | **-** | **-** | **-** | **-** | **-** |  |  | **61293** |  | **61293** | **(16568)** | **44725** |
| **Income (loss) for the year** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **-** | **(3166403)** | **(3166403)** | **24777** | **(3141626)** |
| **SUB-TOTAL COMPREHENSIVE INCOME (LOSS)** | - | - | - | - | **137169** | **-** | **276515** | **61293** | **(3166403)** | **(2691426)** | **54559** | **(2636867)** |
| Employee benefits remeasurement - defined benefit | **-** | **-** |  |  |  | **-** |  | **(16009)** | **16009** | **-** |  | **-** |
| Capital increase through issuance of shares (note 22.1) | **500000** | **4900000** |  |  |  |  |  |  |  | **5400000** |  | **5400000** |
| Expenses with public exchange offer of shares (note 22.1) | **(124556)** | **-** |  |  |  | **-** |  |  | **-** | **(124556)** |  | **(124556)** |
| **Appropriation of income (loss)** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Dividends | **-** |  |  |  |  |  |  |  |  | **-** | **(49)** | **(49)** |
| &nbsp;&nbsp;&nbsp;Compensation of accumulated losses with capital reserve (note 22.3) | **-** | **(2703358)** |  | **-** | **-** | **-** | **-** | **-** | **2703358** | **-** | **-** | **-** |
| Share-based payments | **-** | **-** | **(10294)** | **17559** | **-** | **-** | **-** | **-** | **-** | **7265** | **-** | **7265** |
| **BALANCES AT DECEMBER 31, 2022** | **12835915** | **2338476** | **(77825)** | **(109727)** | **(1024897)** | **-** | **(307389)** | **(21472)** | **(2363073)** | **11270008** | **552861** | **11822869** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All changes in other comprehensive income are presented net of taxes.

&nbsp;&nbsp;&nbsp;&nbsp;(2) FVTOCI: Fair Value Through Other Comprehensive Income.

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 7

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF CASH FLOWS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 31.12.21 | **12.31.22** | 31.12.21 |
| **OPERATING ACTIVITIES** |  |  |  |  |
| Income (loss) from continuing operations | **(3115455)** | 499385 | **(3090678)** | 517314 |
| **Adjustments for:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **1390592** | 1343713 | **1777703** | 1715863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion of biological assets | **1136919** | 943789 | **1214002** | 1030491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Result on disposal of property, plant and equipments and investment | **3433** | (66600) | **3985** | (141211) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down of inventories to net realizable value | **206666** | 100993 | **56337** | 128680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for tax, civil and labor risks | **338135** | 116215 | **341038** | 116144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from investments under the equity method | **840395** | (867505) | **(1076)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial results, net | **2011342** | 3715557 | **2668755** | 3044575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax recoveries and gains in tax lawsuits | **(32030)** | (107380) | **(39547)** | (108785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax | **233898** | (779862) | **208060** | (807744) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee profit sharing | **(2075)** | 117177 | **(10190)** | 170425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other provisions (1) | **552660** | (923) | **554460** | 2793 |
|  | **3564480** | 5014559 | **3682849** | 5668545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **1292703** | (1916087) | **(144597)** | 386889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **1089796** | (2343241) | **712913** | (2878507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Biological assets - current | **(216566)** | (742404) | **(296934)** | (815699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **(615856)** | 1236229 | **(523200)** | 1420014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | **(843467)** | 790946 | **(843467)** | 790946 |
| **Cash generated by operating activities** | **4271090** | 2040002 | **2587564** | 4572188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in securities at FVTPL (2) | **(353673)** | (23894) | **(675897)** | (115041) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions of securities at FVTPL (2) | **386303** | 44768 | **679990** | 145053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest received | **262899** | 89696 | **281989** | 106388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends and interest on shareholders' equity received | **-** | 10 | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of tax, civil and labor provisions | **(295151)** | (399646) | **(292385)** | (399252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | **(1242379)** | 237043 | **(1191475)** | 266491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating assets and liabilities (3) | **(2852173)** | 2628834 | **486598** | (652191) |
| **Net cash provided by operating activities** | **176916** | 4616813 | **1876384** | 3923636 |
| **INVESTING ACTIVITIES** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in securities at amortized cost | **-** |  | **(289021)** | (4060) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions of securities at amortized cost | **-** |  | **290132** | 166112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in securities at FVTOCI (4) | **-** |  | **-** | (12866) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions of securities at FVTOCI (4) | **-** |  | **-** | 86059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of restricted cash | **(2074)** | 400 | **(2074)** | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to property, plant and equipment | **(1257422)** | (1407885) | **(1452733)** | (1555426) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to biological assets - non-current | **(1287189)** | (1142533) | **(1387669)** | (1239746) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposals of property, plant, equipments and investment | **62545** | 58836 | **62545** | 58836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to intangible assets | **(212541)** | (174971) | **(228734)** | (179632) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business combination, net of cash | **-** | (581) | **(158348)** | (985639) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of participation in subsidiaries with loss of control | **-** |  | **-** | 132951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital increase in affiliates | **(92885)** | 1770 | **(92885)** | 1770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital increase in subsidiaries | **(477522)** | (1006073) | **-** |  |
| **Net cash used in investing activities** | **(3267088)** | (3671037) | **(3258787)** | (3531241) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities from discontinued operations | **-** |  | **-** | (17550) |
| **Net cash used in investing activities** | **(3267088)** | (3671037) | **(3258787)** | (3548791) |
| **FINANCING ACTIVITIES** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debt issuance | **2773833** | 2633863 | **3392613** | 2990782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of debt | **(3503652)** | (1209864) | **(3984422)** | (1395347) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of interest | **(1320617)** | (1060244) | **(1518301)** | (1193367) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of interest derivatives - fair value hedge | **(252662)** | (2975) | **(252662)** | (2975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital increase through issuance of shares (note 22.1) | **5275444** |  | **5275444** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury shares acquisition | **-** | (27721) | **-** | (27721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of non-controlling interests | **-** |  | **(7288)** | (238421) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of lease liabilities | **(468669)** | (533885) | **(649846)** | (705427) |
| **Net cash provided by (used in) financing activities** | **2503677** | (200826) | **2255538** | (572476) |
| **EFFECT OF EXCHANGE RATE VARIATION ON CASH AND CASH EQUIVALENTS** | **(63250)** | 12727 | **(271026)** | 149826 |
| Net increase (decrease) in cash and cash equivalents | **(649745)** | 757677 | **602109** | (47805) |
| Balance at the beginning of the year | **4633816** | 3876139 | **7528820** | 7576625 |
| Balance at the end of the year | **3984071** | 4633816 | **8130929** | 7528820 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes the amount of R$588,774 relating to the Leniency Agreement and other
expenses related to investigations (note 1.3).

&nbsp;&nbsp;&nbsp;&nbsp;(2) FVTPL: Fair Value Through Profit and Loss.

&nbsp;&nbsp;&nbsp;&nbsp;(3) In the Parent Company, contemplates mainly the effects of prepayments of
exports with subsidiaries in the amount of R$(3,547,202) for the year ended December 31, 2022 (R$2,850,793 for the year ended December
31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;(4) FVTOCI: Fair Value Through Other Comprehensive Income.

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 8

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

**STATEMENTS OF VALUE ADDED**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | Restated(1) 12.31.21 |
| **1 - REVENUES** | **52044753** | 48221304 | **59754111** | 54744458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of goods and products | **51372692** | 46703553 | **58890370** | 53046159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | **(561802)** | 132868 | **(543796)** | 217011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue related to construction of own assets | **1244779** | 1394230 | **1420309** | 1494087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected credit losses | **(10916)** | (9347) | **(12772)** | (12799) |
| **2 - SUPPLIES ACQUIRED FROM THIRD PARTIES** | **(38811335)** | (32826060) | **(44733556)** | (37820537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs of goods sold | **(32703676)** | (27522141) | **(38225797)** | (32029929) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materials, energy, third parties services and other | **(6045484)** | (5289193) | **(6454145)** | (5769618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reversal for inventories losses | **(62175)** | (14726) | **(53614)** | (20990) |
| **3 - GROSS ADDED VALUE(1-2)** | **13233418** | 15395244 | **15020555** | 16923921 |
| **4 - DEPRECIATION AND AMORTIZATION** | **(2527511)** | (2287502) | **(2991705)** | (2746354) |
| **5 - NET ADDED VALUE (3-4)** | **10705907** | 13107742 | **12028850** | 14177567 |
| **6 - RECEIVED FROM THIRD PARTIES** | **113883** | 1326695 | **1082538** | 534079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from associates and joint ventures | **(840395)** | 867505 | **1076** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial income | **955751** | 462847 | **1082935** | 537736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | **(1473)** | (3657) | **(1473)** | (3657) |
| **7 - ADDED VALUE TO BE DISTRIBUTED (5+6)** | **10819790** | 14434437 | **13111388** | 14711646 |
| **8 - DISTRIBUTION OF ADDED VALUE** | **10819790** | 14434437 | **13111388** | 14711646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Payroll** | **5240428** | 5152065 | **6116739** | 5771862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries | **3768708** | 3666797 | **4438100** | 4163183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefits | **1188629** | 1215761 | **1371656** | 1319454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government severance indemnity fund for employees | **283091** | 269507 | **306983** | 289225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Taxes, Fees and Contributions** | **5425654** | 4426596 | **5915545** | 4657361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | **2210594** | 1388767 | **2441905** | 1528480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | **3166130** | 2993915 | **3416842** | 3077820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal | **48930** | 43914 | **56798** | 51061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Capital Remuneration from Third Parties** | **3269163** | 4356391 | **4169782** | 3765109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interests, including exchange variation | **3050396** | 4234740 | **3844951** | 3639311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rents | **218767** | 121651 | **324831** | 125798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interest on Own-Capital** | **(3115455)** | 499385 | **(3090678)** | 517314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) for the year from continuing operations | **(3115455)** | 499385 | **(3115455)** | 499385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest |  |  | **24777** | 17929 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts of freight and port expenses in intra-group transactions were
subject to an immaterial classification error correction (note 3).

The accompanying notes are an integral part of the financial statements.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 9

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_031.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 10

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_004.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 11

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_005.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 12

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_006.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 13

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_007.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 14

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_008.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 15

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_009.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 16

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 17

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_011.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 18

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 19

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_013.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 20

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_014.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 21

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_015.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 22

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

![](brfra4q226k_016.jpg)

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 23

---

| |
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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 34

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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 35

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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 36

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<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 37

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1. COMPANY'S OPERATIONS

BRF S.A. ("BRF") and its subsidiaries (collectively the "Company") is a publicly traded company, listed on the segment Novo Mercado of Brasil, Bolsa, Balcão ("B3"), under the ticker BRFS3, and listed on the New York Stock Exchange ("NYSE"), under the ticker BRFS. The Company's registered office is at Rua Jorge Tzachel, nº 475, Bairro Fazenda, Itajaí - Santa Catarina and the main business office is in the city of São Paulo.

BRF is a Brazilian multinational company, with global presence, which owns a comprehensive portfolio of products, and it is one of the world's largest companies of food products. The Company operates by raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and others.

The Company holds as main brands *Sadia, Perdigão, Qualy, Chester®, Kidelli, Perdix, Banvit, Biofresh* and *Gran Plus*, present mainly in Brazil, Turkey and Middle Eastern countries.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 38

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1.1. Equity interest

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **% equity interest** | **% equity interest** |
| **Entity** | **Main activity** | **Country (1)** | **12.31.22** | 12.31.21 |
| BRF GmbH | Holding | Austria | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Foods GmbH <sub>(f)</sub> | Industrialization, import and commercialization of products | Austria | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Al Khan Foodstuff LLC ("AKF") <sub>(b)</sub> | Import, commercialization and distribution of products | Oman | **70.00** | 70.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TBQ Foods GmbH | Holding | Austria | **60.00** | 60.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banvit Bandirma Vitaminli | Import, industrialization and commercialization of products | Turkey | **91.71** | 91.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banvit Enerji ve Elektrik ÜretimLtd. Sti. | Generation and commercialization of electric energy | Turkey | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nutrinvestments BV | Holding | The Netherlands | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banvit ME FZE <sub>(a)</sub> | Marketing and logistics services | UAE | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Foods LLC <sub>(a)</sub> | Import, industrialization and commercialization of products | Russia | **99.99** | 99.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Global Company Nigeria Ltd. | Marketing and logistics services | Nigeria | **99.00** | 99.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Global Company South Africa Proprietary Ltd. | Administrative, marketing and logistics services | South Africa | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Global Company Nigeria Ltd. | Marketing and logistics services | Nigeria | **1.00** | 1.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Global GmbH | Holding and trading | Austria | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Foods LLC <sub>(a)</sub> | Import, industrialization and commercialization of products | Russia | **0.01** | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Japan KK | Marketing and logistics services, import, export, industrialization and commercialization of products | Japan | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Korea LLC | Marketing and logistics services | Korea | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Shanghai Management Consulting Co. Ltd. | Provision of consultancy and marketing services | China | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Shanghai Trading Co. Ltd. | Import, export and commercialization of products | China | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Singapore Foods PTE Ltd. | Administrative, marketing and logistics services | Singapore | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eclipse Holding Cöoperatief U.A. | Holding | The Netherlands | **99.99** | 99.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buenos Aires Fortune S.A. <sub>(a)</sub> | Holding | Argentina | **4.36** | 4.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eclipse Latam Holdings | Holding | Spain | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buenos Aires Fortune S.A. <sub>(a)</sub> | Holding | Argentina | **95.64** | 95.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perdigão Europe Lda. | Import, export of products and administrative services | Portugal | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ProudFood Lda. | Import and commercialization of products | Angola | **90.00** | 90.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sadia Chile S.A. | Import, export and commercialization of products | Chile | **40.00** | 40.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wellax Food Logistics C.P.A.S.U. Lda. | Import, commercialization of products and administrative services | Portugal | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Foods Holdings Ltd. | Holding | UAE | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Al-Wafi Food Products Factory LLC <sub>(h)</sub> | Import, export, industrialization and commercialization of products | UAE | **100.00** | 49.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Badi Ltd. | Holding | UAE | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Al-Wafi Al-Takamol International for Foods Products | Import and commercialization of products | Saudi Arabia | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joody Al Sharqiya Food Production Factory LLC | Import and commercialization of products | Saudi Arabia | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Kuwait Food Management Company WLL <sub>(b)</sub> | Import, commercialization and distribution of products | Kuwait | **49.00** | 49.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Foods Malaysia SDN. BHD. <sub>(a)</sub> | Marketing and logistics services | Malaysia | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Foods LLC <sub>(b)</sub> | Import, commercialization and distribution of products | UAE | **49.00** | 49.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Foods Qatar <sub>(b)</sub> | Import, commercialization and distribution of products | Qatar | **49.00** | 49.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Hong Kong LLC <sub>(g)</sub> | Import, commercialization and distribution of products | Hong Kong | **-** | 100.00 |
| Eclipse Holding Cöoperatief U.A. | Holding | The Netherlands | **0.01** | 0.01 |
| Establecimiento Levino Zaccardi y Cia. S.A. <sub>(a)</sub> | Industrialization and commercialization of dairy products | Argentina | **99.99** | 99.99 |
| BRF Energia S.A. | Commercialization of eletric energy | Brazil | **100.00** | 100.00 |
| BRF Pet S.A. | Industrialization, commercialization and distribution of feed and nutrients for animals | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hercosul Alimentos Ltda. <sub>(e)</sub> | Manufacturing and sale of animal feed | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hercosul Distribuição Ltda. <sub>(e)</sub> | Import, export, wholesale and retail sale of food products for animals | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hercosul International S.R.L. <sub>(e)</sub> | Manufacturing, export, import and sale of feed and nutrients for animals | Paraguay | **99.00** | 99.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hercosul Soluções em Transportes Ltda. <sub>(e)</sub> | Road freight | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mogiana Alimentos S.A. | Manufacturing, distribution and sale of Pet Food products | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affinity Petcare Brasil Participações Ltda. <sub>(e)</sub> | Holding | Brazil | **-** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gewinner Participações Ltda. <sub>(e)</sub> | Industrialization, distribution and sale of feed and nutrients for animals | Brazil | **-** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paraguassu Participações S.A. <sub>(e)</sub> | Holding | Brazil | **-** | 100.00 |
| Hercosul International S.R.L. | Manufacturing, export, import and sale of feed and nutrients for animals | Paraguay | **1.00** | 1.00 |
| Potengi Holdings S.A. <sub>(c)</sub> | Holding | Brazil | **50.00** |  |
| PR-SAD Administração de bem próprio S.A. | Management of assets | Brazil | **33.33** | 33.33 |
| ProudFood Lda. | Import and commercialization of products | Angola | **10.00** | 10.00 |
| PSA Laboratório Veterinário Ltda. | Veterinary activities | Brazil | **99.99** | 99.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Investimentos Ltda. <sub>(d)</sub> | Holding, management of companies and assets | Brazil | **99.99** | 99.99 |
| Sadia Alimentos S.A. | Holding | Argentina | **43.10** | 43.10 |
| Sadia Chile S.A. | Import, export and commercialization of products | Chile | **60.00** | 60.00 |
| Sadia Uruguay S.A. | Import and commercialization of products | Uruguay | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sadia Alimentos S.A. | Holding | Argentina | **56.90** | 56.90 |
| Vip S.A. Empreendimentos e Participações Imobiliárias | Commercialization of owned real state | Brazil | **100.00** | 100.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Establecimiento Levino Zaccardi y Cia. S.A. <sub>(a)</sub> | Industrialization and commercialization of dairy products | Argentina | **0.01** | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PSA Laboratório Veterinário Ltda. | Veterinary activities | Brazil | **0.01** | 0.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRF Investimentos Ltda. <sub>(d)</sub> | Holding, management of companies and assets | Brazil | **0.01** | 0.01 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) UAE – United Arab Emirates.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Dormant subsidiaries. The Company is evaluating the liquidation of these
subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;(b) For these entities, the Company has agreements that ensure full economic
rights, except for AKF, in which the economic rights are of 99%.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Affiliate with subsidiary of AES Brasil Energia S.A. (note 12).

&nbsp;&nbsp;&nbsp;&nbsp;(d) On February 11, 2022, the name of Sino dos Alpes Alimentos Ltda. was changed
to BRF Investimentos Ltda.

&nbsp;&nbsp;&nbsp;&nbsp;(e) On July 31, 2022, BRF Pet S.A. merged the holding companies Affinity Petcare
Brasil Participações Ltda., Gewinner Participações Ltda. and Paraguassu Participações S.A. which
held interests in the operating companies Hercosul Alimentos Ltda., Hercosul Soluções em Transportes Ltda., Hercosul Distribuidora
Ltda. e Mogiana Alimentos S.A. Therefore, as of this date, BRF Pet holds all the shares of these companies.

&nbsp;&nbsp;&nbsp;&nbsp;(f) As from September 28, 2022, BRF GMBH holds the entire capital stock of BRF
Foods GMBH, with retroactive tax and accounting effects to January 1<sup>st</sup>,
2022. <br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 39

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&nbsp;&nbsp;&nbsp;&nbsp;(g) On October 7, 2022, the subsidiary BRF Hong Kong LLC was dissolved.

&nbsp;&nbsp;&nbsp;&nbsp;(h) On November 11, 2022, was acquired the remaining minority stake of Al-Wafi
Food Products Factory LLC.

Except for the associates PR-SAD Administração de bem próprio S.A. and Potengi Holdings S.A., in which the Company recognizes the investments by the equity method, all other entities presented in the table above were consolidated.

1.2. Discontinued Operations

In 2022, BRF S.A. and certain of its subsidiaries entered into an agreement with Tyson International Holding Co. and Tyson Foods, Inc., in connection with the sale of BRF's operations in Europe and Thailand, closed on June 3, 2019. This agreement provides for the termination of certain disputes related to losses incurred by the disposed entities and terminates Tyson's license to use certain BRF trademarks. Additionally, certain tax claims related to the period prior to the sale of the operations were finalized. The settlement of such disputes resulted in the payment of the amount equivalent to R$50,948 (USD10,164) by BRF. These transactions resulted in an expense which is presented under Net Loss from Discontinued Operations, consistently with the practice adopted in the sale of the operations in 2019.

1.3. Investigations involving BRF

The Company has been subject to two external investigations, denominated "Carne Fraca Operation" in 2017 and "Trapaça Operation" in 2018, as detailed below. The Company's Audit and Integrity Committee conducted independent investigations, along with the Independent Investigation Committee, composed of external members and with external legal advisors in Brazil and abroad with respect to the allegations involving BRF employees and former employees. In 2021, the Division of Enforcement of the U.S. Securities and Exchange Commission ("SEC") and the Department of Justice ("DOJ") issued letters notifying the closure of the investigation against BRF, with no imposition of any sanctions or penalties against the Company.

As a result of the independent investigations, on December 28, 2022, BRF has entered into a Leniency Agreement with the Brazilian authorities – Controladoria Geral da União ("CGU") and the Advocacia Geral da União ("AGU"), addressing issues related to investigations conducted by Brazilian government entities.

Through the Leniency Agreement, BRF assumed the following commitments: (a) to remediate the identified practices and to adopt preventive measures to prevent that such practices could happen again; (b) to pay the total amount of R$583,977, subject to the terms below; and (c) to continuously improve its integrity program with the support and monitoring of the CGU. This amount was recorded in Other Operating Expenses, and Other Current Liabilities.

As a result of the Agreement, the signatory authorities will terminate administrative proceedings filed against BRF, in addition to undertaking not to file lawsuits against the Company as regards to the matters covered by the agreement.

The amount mentioned above is to be paid by BRF to the Federal Government in 5 (five) annual installments, starting on June 30th, 2023, and may be paid (i) by offsetting the balance of tax losses carryforward and the negative basis of the contribution on profit ("CSLL") in the determination of the income tax *("IRPJ")* and the ("CSLL") up to the limit of 70% (seventy percent) of such amount; (ii) by offsetting against tax credits held by BRF against the Federal Government; (iii) by offsetting against credits contemplated in writs of payment (precatórios) held by BRF against the Federal Government; or (iv) in cash. BRF undertook to provide the Federal Government with a collateral in the form of a bank guarantee, deposit in an escrow account, collateral security, or insurance-guarantee, in an amount equivalent to one installment of the amount due.

In addition to the amount above, the other impacts observed as result of the referred investigations were recorded in Other Operating Expenses, and Other Current Liabilities, in the amount of R$4,797 for the year ended December 31, 2022 (R$9,003 for the year ended December 31, 2021) mostly related to expenditures with lawyers, legal advisors and consultants.

The Company, as from the negotiation phase of the Agreement until full compliance with obligations, undertook to make its best efforts to cooperate with the public authorities involved, and shall uphold its public commitment to pursue the process of continuous improvement of its corporate governance and compliance practices.

1.4. Agreement with the Public Investment Fund

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 40

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On October 24, 2022 the BRF GMBH, wholly-owned subsidiary of Company, has executed an agreement ("Agreement") with Halal Products Development Company ("HPDC"), a wholly-owned subsidiary of the Public Investment Fund ("PIF") that aims to support the development of the Halal industry in Saudi Arabia by fostering innovation and driving growth across the Halal ecosystem. The transaction is still subject to obtaining regulatory and internal approvals of parties.

The agreement provides for the incorporation of a legal entity in Saudi Arabia with an ownership of up to 70% by BRF and up to 30% by HPDC. The entity will operate in the entire chicken production chain in Saudi Arabia and promote the sale of fresh, frozen and processed products. The entity will have a combined investment of R$2,608,850 (USD500,000), of which (i) R$652,212 (USD125,000) will be contributed by BRF GmbH and by HPDC upon the incorporation of the entity; and (ii) the remainder will be contributed pursuant to the investment plan to be prepared by the parties. The agreement also foresees the creation of Halal Headquarters, a Halal Food Innovation Center and a Center of Excellence in Saudi Arabia.

1.5. Business combinations

1.5.1. Mogiana Group

On February 18, 2022, according to conditions established in the agreement, the Company, through its wholly-owned subsidiary BRF Pet, concluded the price adjustment of the consideration for the acquisition of Paraguassu Participações S.A. ("Paraguassu") and Affinity Petcare Brasil Participações Ltda. ("Affinity"), both owner of 100% of the capital stock of Mogiana Alimentos S.A. (together form the "Mogiana Group"). After the price adjustment, in the amount of R$4,026, the fair value of the consideration transferred was R$477,408, of which R$371,746 were paid in cash, R$60,000 will be paid in the next 5 years and R$45,662 refers to contingent consideration. The amount payable is subject to interest.

Based on the price adjustment, there was a change in the determination of the value of the goodwill recognized (note 14) from R$118,930 to R$114,904 arising from the business combination consists mainly of the synergies expected with the combination of the operations BRF Pet, Mogiana Group and Hercosul Group strengthening the Company's presence in the pet food sector. A summary of the final amounts in the business combination are presented below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 41

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| **Mogiana Group Combined** | **Fair value at the acquisition date** |
| **Assets** |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | **938** |
| &nbsp;&nbsp;&nbsp;Marketable securities | **29824** |
| &nbsp;&nbsp;&nbsp;Trade and other receivables | **59758** |
| &nbsp;&nbsp;&nbsp;Inventories | **54517** |
| &nbsp;&nbsp;&nbsp;Recoverable taxes | **27748** |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | **139042** |
| &nbsp;&nbsp;&nbsp;Intangible assets | **206553** |
| &nbsp;&nbsp;&nbsp;Other current and non-current assets | **5486** |
|  | **523866** |
| **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | **55919** |
| &nbsp;&nbsp;&nbsp;Loans and borrowings | **22688** |
| &nbsp;&nbsp;&nbsp;Lease liability | **10168** |
| &nbsp;&nbsp;&nbsp;Taxes payable | **11487** |
| &nbsp;&nbsp;&nbsp;Payroll, related charges and employee profit sharing | **6296** |
| &nbsp;&nbsp;&nbsp;Provision for tax, civil and labor risks (1) | **34976** |
| &nbsp;&nbsp;&nbsp;Employee benefits | **2081** |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | **815** |
| &nbsp;&nbsp;&nbsp;Other current and non-current liabilities | **16932** |
|  | **161362** |
| **Net assets acquired** | **362504** |
| **Fair value of consideration transferred** | **477408** |
| **Goodwill** | **114904** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes R$28,853 related to contingent liabilities recognized in the business
combination.

2. BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

The Parent Company's and Consolidated financial statements were prepared in accordance with the accounting practices adopted in Brazil and with international financial reporting standards ("IFRS"), issued by International Accounting Standards Board ("IASB"). All the relevant information applicable to the financial statements, and only them, are being evidenced and correspond to those used by administration in its management.

The Parent Company's and Consolidated financial statements are expressed in thousands of Brazilian Reais ("R$"), unless otherwise stated. For disclosures of amounts in other currencies, the values were also expressed in thousands, unless otherwise stated.

The preparation of the Parent Company's and Consolidated financial statements require Management to make judgments, use estimates and adopt assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, as well as the disclosures of contingent liabilities. The uncertainty inherent to these judgments, assumptions and estimates could result in material adjustments to the carrying amount of certain assets and liabilities in future periods.

Any judgments, estimates and assumptions are reviewed at each reporting period.

The Parent Company's and Consolidated financial statements were prepared based on the recoverable historical cost, except of items held at fair value as described in Note 3.3.

The Company prepared Parent Company's and Consolidated financial statements under the going concern assumption and disclosed all relevant information in its explanatory notes, in order to clarify and complement the accounting basis adopted.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 42

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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1. Changes in accounting practices

In order to improve the level of detail in the presentation of information in the financial statements, in the year ended December 31, 2022, the Company began to classify freight and port expenses in intra-group transactions, as Cost of Sales and no longer as Selling Expenses, as these are costs incurred to bring inventories to their current condition and location.

To ensure comparability between the years presented, the comparative balances were reclassified as below:

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|  | | |  | **Consolidated** |
|  | | | 2021 | 2021 |
| | <br>Previously presented | <br>Reclassification<br>Freight and port expenses | Reclassified | Corresponding Notes |
| Cost of sales | (38177609) | (473163) | **(38650772)** | 29 |
| Operating Income (Expenses): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | (6531413) | 473163 | **(6058250)** | 29 |

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3.2. Consolidation

The Consolidated financial statements include BRF and the subsidiaries (note 1.1) of which BRF has direct or indirect control, obtained when the Company is exposed to or has right to variable returns of such subsidiaries and has the power to influence these returns.

The financial information of the subsidiaries was prepared using the same accounting policies of the Parent Company.

All transactions and balances between BRF and its subsidiaries have been eliminated upon consolidation, as well as the unrealized profits or losses arising from these transactions, net of taxes. Non-controlling interests are presented separately.

3.3. Accounting judgments, estimates and assumptions

The Management made the following judgments which have a material impact on the amounts recognized in the financial statements:

Main judgments:

» determination of the moment when control is transferred for revenue recognition (note 26);

» determination or change of the probability of exercise of a renewal option or anticipated termination of the lease agreements (note 18).

Main estimates:

» determination of fair value of financial instruments due to significant unobservable inputs (note 24);

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» determination of loss rate in the measurement of expected credit losses (notes 3.20.1 and 6);

» determinations of fair value of biological assets due to significant unobservable inputs (note 8);

» determination of the term on the analysis of recoverability of taxes (note 9 and 10);

» reduction factor on technical useful lives such as deterioration, obsolescence and influence of external factors when determining the useful lives of property, plant, equipment and intangible assets with definite useful life (note 13 and 14);

» actuarial assumptions on measurement of employee benefits liabilities (note 20);

» assessment of the loss probability and liability measurement on provision for tax, civil and labor risks (note 21);

The Company reviews the estimates and underlying assumptions used in its accounting estimates in each reporting period. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

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3.4. Functional currency and foreign currency transactions

The financial statements of each subsidiary included in consolidation are prepared using the currency of the main economic environment where it operates.

The financial statements of foreign subsidiaries with functional currency different from Reais are translated into Brazilian Reais, under the following criteria:

» assets and liabilities are translated at the closing exchange rate;

» income and expenses are translated at the monthly average rate;

» the cumulative effects of gains or losses upon translation are recognized in Other Comprehensive Income, within equity.

Goodwill arising from business combinations with foreign entities is expressed in the functional currency of that entity and translated by the closing exchange rate for the reporting currency of the acquirer, with the exchange variation effects recognized in Other Comprehensive Income.

The transactions in foreign currency follow the criteria below:

» non-monetary assets and liabilities, as well as incomes and expenses, are translated at the historical rate of the transaction;

» monetary assets and liabilities are translated at the closing exchange rate;

» the cumulative effects of gains or losses upon translation of monetary assets and liabilities are recognized in the statements of income (loss).

3.5. Hyperinflationary economies

The Company has subsidiaries in Argentina and in Turkey, which are considered a hyperinflationary economy. For these subsidiaries the accounting policies below are adopted:

Non-monetary items, as well as income and expenses, are adjusted by the changes in the inflation index between the initial recognition date the closing date, so that the subsidiaries' financial information is presented at current value.

When an economy become hyperinflationary the cumulative adjustments related to prior periods are recorded in accumulated profit and losses in equity, considering that the Controlling entity is not in a hyperinflationary economy.

The translation of the balances of the subsidiary in hyperinflationary economy to the reporting currency was made at the closing rate of the reporting period for both financial position and income statement balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.1. Turkey

Levels of inflation in Turkey have been high in the recent years and exceeded 100% for the three-year cumulative inflation, according to the Turkish Statistical Institute. Based on this index and on qualitative analyses, the Company concluded that Turkey is considered a hyperinflationary economy, and, therefore, from the second quarter of 2022, the accounting practices described above were applied for the financial information of the Company's subsidiary in Turkey.

The price index used for the year ended December 31, 2022 was 64%. In the Consolidated financial information for the year ended December 31, 2022, the inflation adjustment affected the Loss before financial results and income taxes in R$(188,251),and decreased the Financial Result in the amount of R$400,763 and the Loss from continuing operations in the amount of R$196,953.

The cumulative effects as of December 31, 2021 were recognized under Accumulated Losses, in the amount of R$351,453, whereas the effects for the year ended December 31, 2022 were recognized as Exchange and monetary variations, in the income (loss) for the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.2. Argentina

The inflation rates used in 2022 and 2021 were, respectively, 95.49% and 51.65%. In the Consolidated financial information for the year ended December 31, 2022, the inflation adjustment increased the Loss before financial results and income taxes in the amount of R$(227) (R$(474) for the year ended December 31, 2021), the Financial Result in the amount of R$(7,343) (R$(2,241) for the year ended December 31, 2021) and the Loss from continuing operations in the amount of R$(7,570) for the year ended December 31, 2021).

3.6. Business combination

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Business combinations are recorded according to the acquisition method, which determines that the cost of an acquisition is measured by the sum of the consideration transferred, assessed based on the fair value on the acquisition date, and the value of any non-controlling interest in the acquired company. The Company measures the non-controlling interest based on its participation in the net assets identified in the acquired company. Costs directly attributable to the acquisition are recorded as expense when incurred.

Business combinations with entities under common control are recognized using the acquisition method when the agreements have a substance and at cost when no substance is observed in the transaction. In the substance assessment factors such as involvement of third parties, creation of a new company and a potential sale, change of control, among others are considered.

In the acquisition of a business, Management assesses the acquired assets and liabilities assumed in order to classify and allocate them in accordance with the contractual terms, economic circumstances and relevant conditions on the acquisition date.

Initially, goodwill is measured as the excess of the consideration transferred over the fair value of the net assets acquired (identifiable assets and liabilities assumed, net).

After the initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of testing the recoverable amount, goodwill is allocated to each of the cash-generating units that will benefit from the acquisition.

3.7. Inventories

Inventories are measured at the lower of the average cost of acquisition or production of finished products and the net realizable value. The cost of finished products includes purchased raw materials, labor, production costs, transportation and storage and non-recoverable taxes, which are related to all the processes necessary for bringing the products to sales conditions. Write-down to net realizable value due to obsolescence, impaired items, slow-moving and realizable value through sale are evaluated and recorded in each reporting period, as appropriate. Normal production losses are included in the production cost for the respective month, while abnormal losses, if any, are expensed in Cost of sales without movement through inventories.

3.8. Biological assets

The consumable and production biological assets (live animals) and forests are measured at their fair value, using the cost approach technique to live animals and the revenue approach for forests. In determining the fair value of live animals, all losses inherent to the breeding process are already considered.

3.9. Income taxes

In Brazil, it comprises income tax ("IRPJ") and social contribution on profit ("CSLL"), which are calculated monthly based on taxable profit, after offsetting tax losses and negative social contribution base, limited to 30% of the taxable income, applying the rate of 15% plus an additional 10% for the IRPJ and 9% for the CSLL.

The results obtained from foreign subsidiaries are subject to taxation by the countries where they are based, according to applicable rates and legislation. In Brazil, these results suffer the effects of taxation on universal basis established by the Law No. 12,973 / 14. The Company analyzes the results of each subsidiary for the application of its Income Tax legislation, in order to respect the treaties signed by Brazil and avoid double taxation.

Deferred taxes represent credits and debits on unused tax losses carried forward and negative CSLL base, as well as temporary differences between the tax and accounting bases. Deferred income tax assets and liabilities are classified as non-current. When the Company's internal studies indicate that the future use of these credits over a 10-year horizon is not probable, the asset is derecognized (note 10.3).

Deferred tax assets and liabilities are presented net if there is enforceable legal right to be offset, and if they are under the responsibility of the same tax authority and under the same taxable entity.

Deferred tax assets and liabilities must be measured at the rates applicable in the period in which the asset is realized or the liability is settled, based on the tax rates that have been enacted or substantively enacted by the end of the reporting period.

In compliance with the interpretation ICPC 22 / IFRIC 23, the Company analyzed relevant tax decisions of higher courts and whether they conflict in any way with the positions adopted by the Company. Regarding the known uncertain tax

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positions, the Company reviewed the corresponding legal opinions and jurisprudence and did not identify impacts to be recorded, since it concluded that the tax authorities are not likely to reject the positions adopted.

The Company periodically evaluates the positions assumed in which there are uncertainties about the adopted tax treatment and will set up a provision when applicable.

3.10. Assets held for sale and discontinued operations

Assets held for sale are measured at the lower of the book value and the fair value less selling costs and are not depreciated or amortized. Such items are only classified under this item when its sale is highly probable and they are available for immediate sale in their current conditions.

Losses due to impairment are recorded under Other operating expenses.

The statement of income and cash flows are classified as discontinued operations and presented separately from continued operations of the Company when the operation represents a separate major line of business or geographical area of operations.

The prior periods of the statement of income (loss) and of the statement of cash flows are restated for comparative purposes. The statement of financial position remains as disclosed in prior periods.

3.11. Investments

Investments classified in this group are: i) in associated companies, that are entities over which the Company has significant influence, which is the power to participate in decisions on the investee's financial and operational policies, but without individual or joint control of these policies; and ii) in joint ventures, in which the control of the business is shared through contractual agreement and decisions about the relevant activities require the unanimous consent of the parties.

Investments are initially recognized at cost and subsequently adjusted using the equity method.

3.12. Property, plant and equipment

Property, plant and equipment are measured by the cost of acquisition, formation, construction or dismantling, less accumulated depreciation. Loans and borrowings costs are recorded as part of the costs of property, plant and equipment in progress, considering the weighted average rate of loans and borrowings effective on the capitalization date.

Depreciation is recognized based on the estimated economic useful life of each asset using the straight-line method. The estimated useful life, residual values and depreciation methods are reviewed annually and the effects of any changes in estimates are accounted for prospectively. Land is not depreciated.

The Company annually performs an impairment analysis for its cash-generating units, which include the balances of property, plant and equipment (note 13).

Gains and losses on disposal of property, plant and equipment are determined by comparing the sale value with the residual book value and are recognized in the statement of income on the date of sale under Other operating income (expense).

3.13. Intangible assets

Acquired intangible assets are measured at cost at initial recognition, while those arising from a business combination are recognized at fair value on the acquisition date. After initial recognition, are presented at cost less accumulated amortization and impairment losses, when applicable. Internally generated intangible assets, excluding development costs, are not capitalized and the expense is recognized in the income statement when incurred.

Intangible assets with definite useful lives are amortized on a straight-line basis over their economic useful lives. The amortization period and method for an intangible asset with definite life are reviewed at least at the end of each year, and any changes observed are applied prospectively. The amortization of intangible assets with finite lives is recognized in the income statement in the expense category related to their use.

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Intangible assets with indefinite useful lives are not amortized, but are tested annually for impairment, being allocated to the cash-generating units (note 14). The Company records in this subgroup mainly goodwill and brands, which are expected to contribute indefinitely to its cash flows.

3.14. Contingent assets

Contingent assets are possible assets to which existence needs to be confirmed by the occurrence or not of one or more uncertain future events. The Company does not record contingent assets, however when the inflow of economic benefits is more likely than not to occur, the contingent assets are disclosed.

3.15. Leasing

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assesses whether:

» the contract involves the use of an identified asset, which may be explicit or implicit, and may be physically distinct or represent substantially the entire capacity of a physically distinct asset. If the supplier has a substantial right to replace the asset, then the asset is not identified;

» the Company has the right to obtain substantially all the economic benefits from using the asset throughout the period of use; and

» the Company has the right to direct the use of the asset throughout the period of use, which occurs in either of the following situations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the Company has the right to direct how and for what purpose the asset is used, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the conditions are predetermined so as the Company has the right to operate the asset or has designed
the asset in a way that predetermined how and for what purpose it will be used.

At the beginning of the contract, the Company recognizes a right-of-use asset and a lease liability, which represents the obligation to make payments related to the underlying asset of the lease.

The right-of-use asset is initially measured at cost and comprises: the initial measurement of the lease liability adjusted for any payment made at or before the commencement date, less any incentive received; any initial direct costs incurred; and an estimate of costs in dismantling and removing the asset, restoring the site on which it is located or restoring the asset to the condition required by the terms of the lease. Renewal or early termination options are analyzed individually considering the type of asset involved as well as its relevance in the Company's production process.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date until the end of the useful life of the right-of-use asset or until the end of the period of the lease. The estimated useful life of the right-of-use asset is determined on the same methodology used for the assets owned by the Company (note 3.12). Additionally, the right-of-use asset is adjusted by the subsequent measurement of the lease liability and when applicable, an impairment is recognized.

The lease liability is initially measured at the present value of the future lease payments using the incremental borrowing rate, and subsequently, measured at amortized cost using the effective interest method.

The liability is remeasured when there is a change in (i) future payments resulting from a change in index or rate, (ii) the amount expected to be payable under a residual value guarantee, or (iii) the assessment of whether the Company will exercise the purchase, renewal or termination option.

When the lease liability is remeasured, the corresponding adjustment is recorded in the book value of the right-of-use asset, or in the statement of income if the book value of the right-of-use asset has been reduced to zero.

The Company does not apply lease accounting model to: leases with a term of 12 months or less and that do not contain a purchase option; and leases for which the underlying asset is of low value. For these exemptions, the lease payments are recognized as an expense on a straight-line basis over the lease term.

Additionally, contracts with indefinite term and no fixed payments are expensed as incurred.

3.16. Pension and other post-employment plans

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The Company sponsors supplementary defined benefit and defined contribution pension plans, as well as other post-employment benefits for which an actuarial appraisal is annually prepared by an independent actuary and is reviewed by Management. The cost of defined benefits is established separately for each plan using the projected unit credit method.

The measurements comprise the actuarial gains and losses, the effect of the limit on contributions and returns on the plan assets and are recognized in the financial position against Other Comprehensive Income when incurred, except Award for Length of Service, which its recognition occurs against statement of income. These measurements are not reclassified to statement of income in subsequent periods.

The Company recognizes the net defined benefit asset when:

» controls the resource and has the ability to use the surplus to generate future benefits;

» the control is the result of past events;

» future economic benefits are available for the Company in the form of a reduction in future contributions or cash refunds, either directly to the sponsor or indirectly to another loss-making fund. The effect of the asset limit (irrecoverable surplus) is the present value of these future benefits.

Past service costs are recognized in income for the year on the following dates, whichever comes first:

» date of changing the plan or significantly reducing the expected length of service;

» date in which the Company recognizes the costs related to restructuring.

The cost of services and net interest on the value of the defined benefit liability or asset are recognized in the expense categories related to the function the beneficiary performs and to the financial result, respectively.

3.17. Share based payments

The Company offers to its executives restricted stock plans of its own issuance. The Company recognizes as expense the fair value of the shares, measured at the grant date, on a straight-line basis during the period of service required by the plan, with a corresponding entry: to the shareholders' equity for plans exercisable in shares; and to liabilities for cash exercisable plans. When the conditions associated to the right to restricted stocks are no longer met, the expense recognized is reversed, so that the accumulated expense recognized reflects the vesting period and the Company's best estimate of the number of shares to be delivered.

The expense of the plans is recognized in the statement of income (loss) in accordance with the function performed by the beneficiary.

3.18. Employee and management profit sharing

Employees are entitled to profit sharing based on certain targets agreed upon on an annual basis, whereas directors are entitled to profit sharing based on the provisions of the bylaws, proposed by the Board of Directors and approved by the shareholders. The profit-sharing amount expected to be paid is recognized by function in the statement of income (loss), according to the probability of the target´s achievement.

3.19. Provision for tax, civil and labor risks and contingent liabilities

The provisions are recognized when the Company has a present obligation, formalized or not, as a result of a past event, the outflow of resources to settle the obligation is likely to occur and a reliable estimate can be made.

The Company is involved in several legal and administrative procedures, mainly in Brazil. Assessments of the likelihood of loss in these lawsuits include an analysis of the available evidences, the hierarchy of laws, the available jurisprudence, the most recent court decisions and their relevance in the legal system, as well as the assessment of outside lawyers. Provisions are reviewed and adjusted to reflect changes in circumstances, such as the applicable limitation period, conclusions of tax inspections or additional exposures identified based on new matters or court decisions.

In cases where there are a large number of lawsuits and the amounts are not individually relevant, the Company use historical studies to determine the probability and amounts of losses.

Contingent liabilities from business combinations are recognized if they arise from a present obligation that arose from past events and if their fair value can be measured reliably. The initial measurement is done by the fair value and

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subsequent measurements by the higher value between: the fair value on its acquisition date; and the amount by which the provision would be recognized.

3.20. Financial instruments

Financial instruments are contracts that give rise to a financial asset for one entity and a financial liability or equity instrument for another. Their presentation in the statement of financial position and explanatory notes takes place according to the characteristics of each contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20.1. Financial assets

Financial assets are recognized when the entity becomes party to the contractual provisions of the instrument and classified based on the characteristics of its cash flows and on the management model for the asset. The table below shows financial assets are classified and measured:

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| Amortized Cost | Accounts receivable from Clients and other receivables: billed amount adjusted to present value and, when applicable, reduced by expected credit losses<br>For other assets: Fair value less costs directly attributable to its issuance, reduced by expected credit losses | Interest, changes in amortized cost and expected credit losses recognized in the income statement. |
| Fair Value through Profit and Loss ("FVTPL") | Fair Value | Variation on the fair value recognized in the income statement. |
| Fair Value through Other Comprehensive Income ("FVTOCI"). | Fair value less costs directly attributable to its issuance. | Changes in fair value recognized in other comprehensive income. Upon settlement or transfer, accumulated gains or losses are directly reclassified to Retained earnings or accumulated losses.<br> For debt instruments, expected credit losses are recognized directly in the statement of income. |

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The Company evaluates expected credit losses in each reporting period for instruments measured at amortized cost and for debt instruments measured at Fair Value through Other Comprehensive Income. Losses and reversals of losses are recorded in the income statement.

The interests of financial assets are recorded on Financial Income (Expenses), net.

A financial asset is only derecognized when contractual rights expire or are effectively transferred.

**Cash and cash equivalents:** comprise the balances of cash, banks and securities of immediate liquidity whose maturities, at the time of acquisition, are equal to or less than 90 days, readily convertible into a known amount of cash and which are subject to an insignificant risk of change in value. Securities classified in this group, by their very nature, are measured at fair value through profit or loss.

**Expected credit losses in Accounts receivable from customers and other receivables:** the Company regularly assesses the historical losses on the customer portfolios it has in each region, taking in consideration the dynamics of the markets in which it operates and instruments it has for reducing credit risks, such as: letters of credit, insurance and collateral, as well as identifying specific customers whose risks are significantly different than the portfolio, which are treated according to individual expectations.

Based on these assessments, estimated loss factors are generated by portfolio and aging class, which, applied to the amounts of accounts receivable, generate the expected credit losses. Additionally, the Company evaluates macroeconomic factors that may influence these losses and, if necessary, adjusts the calculation model.

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Securities receivable with legal proceedings in place are reclassified to noncurrent as well as the related estimated credit losses. The securities are written off against the estimated loss when the Management considers that they are no longer recoverable after taking all appropriate actions to collect them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20.2. Financial liabilities

Financial liabilities are recognized when the entity becomes party to the contractual provisions of the instrument. The initial measurement is at fair value and subsequently at amortized cost using the effective interest rate method. The interests of financial liabilities are recorded on Financial Income (Expenses), net.

A financial liability is only derecognized when the contractual obligation expires, is settled or canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20.3. Adjustment to present value

The Company measures the adjustment to present value on short and long-term balances of accounts receivable, suppliers and other obligations, being recognized as a deduction in the asset accounts against the financial result. The rate used by the Company represents the average of Interbank Certificates of Deposit plus a spread <u>representing</u> the <u>Company's average credit rating</u>. On December 31, 2022 this rate corresponds to 15.72% per year on December 31, 2022 (9.3% p.a. on December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20.4. Hedge accounting

**Cash flow hedge:** the effective portion of the gain or loss on the hedge instrument is recognized under Other Comprehensive Income and the ineffective portion in the Financial result. Accumulated gains and losses are reclassified to the Income statement or statement of financial position when the hedge object is recognized, adjusting the item in which the hedge object was accounted for.

When the instrument is designated in a cash flow hedge relationship, changes in the fair value of the future element of the forward contracts and the time value of the options are recognized under Other Comprehensive Income. When the instrument is settled, these hedge costs are reclassified to the income statement together with the intrinsic value of the instruments.

A hedging relationship is discontinued prospectively when it no longer meets the criteria for qualifying as hedge accounting. Upon discontinuation of a cash flow hedge relationship in which the hedged future cash flows are still expected to occur, the accumulated amount remains under Other Comprehensive Income until the flows occur and are reclassified to income.

**Fair value hedge:** the effective portion of the hedge instrument's gain or loss is recognized in the Income Statement or statement of financial position, adjusting the item under which the hedge object is or will be recognized. The hedge object, when designated in this relationship, is also measured at fair value.

**Net investment hedge:** the effective result of the exchange variation of the instrument is recorded under Other Comprehensive Income, in the same item in which the accumulated translation adjustments of the investments (hedge objects) are recognized. Only when the hedged investments are sold, the accumulated amount is reclassified to the income statement, adjusting the gain or loss on the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20.5. Reference interest rate reform

The Company does not have relationship designated for hedge accounting that involve operations indexed to the reference interest rates object from global reform, which includes the replacement of some interbank rates. Additionally, existing liabilities indexed to the reference interest rates (Libor) have contractual arrangements foreseeing the replacement for similar rates. Thus, no relevant impact is expected for the Company if such interest rates cease to exist or are replaced.

3.21. Segment information

An operating segment is a component of the Company that develops business activities to obtain revenues and incur expenses. The operating segments reflect the way in which the Company's management reviews the financial information for decision making. The Company's management identified the operating segments, which meet the quantitative and qualitative parameters of disclosure, pursuant its current management model (note 25).

3.22. Revenue from contracts with customers

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Sales revenues are recognized and measured observing the following steps: (i) identification of the contracts with customers, formalized through sales orders; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) revenue recognition as it satisfies the performance obligations.

Revenues are recognized by the amount that reflects the Company's expectation to receive for the sale of products, net of applicable taxes, returns, rebates and discounts.

The sales process begins with sales orders. The discounts and rebates may be negotiated on a spot basis or may have its conditions formally defined in the agreements, generally signed with large retail and wholesale chains. In all cases, the performance condition is satisfied when the control of the goods is transferred to the client.

The Company has sales with immediate and deferred payments, for which the adjustment to present value is recognized for the financial component (note 3.20.3).

3.23. Government grants

Government grants are recognized at fair value when there is reasonable assurance that the conditions established will be met and the benefit will be received. The amounts appropriated as revenue in the income statement, when used to reduce income taxes, are transferred from retained earnings to the tax incentive reserve in the years the Company presents profit higher than the reclassification.

3.24. Statement of value added

The company prepared the individual and Consolidated statements of added value ("DVA") under the technical pronouncement CPC 09 – Statement of Value Added, which are presented as part of the financial statements in accordance with practices adopted in Brazil. For IFRS, it represents supplemental financial information.

3.25. Earnings (loss) per share

The basic earnings (losses) per share are calculated by dividing the earnings (losses) attributable to the owners of ordinary shares, by the weighted average quantity of ordinary shares outstanding during the year.

The diluted earnings (losses) per share are calculated by dividing the earnings (losses) attributable to the owners of ordinary shares by the weighted average quantity of ordinary shares outstanding during the year summed to the weighted average quantity of ordinary shares that would be available on the conversion of all potential dilutive ordinary shares (restricted shares within the share-based payment plans).

3.26. Standards issued but not yet effective

The following amendments to standards have been issued by IASB but are not effective for the 2022 year.

• **Amendment to IAS 1 and IFRS Practice Statement 2 - Disclosure of accounting policies:**

In February 2021, the IASB amended IAS 1 regarding the disclosure of "material" accounting policies by replacing "significant" accounting policies. The amendments define what is "material accounting policy information" and explain how to identify it. To support this amendment, the IASB also amended "IFRS Practice Statement 2 Making Materiality Judgments" to provide guidance on how to apply the concept of materiality to accounting policy disclosures. The amendment in question starts from January 1st, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (CPC 23):** 

In February 2021, the IASB issued amendments to IAS 8 (corresponding standard to CPC 23), which introduces the definition of "accounting estimates". The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and error correction. In addition, they clarify how entities use measurement techniques and inputs to develop accounting estimates.

The amendments will be effective for periods beginning on or after January 1st, 2023 and will apply to changes in accounting policies and estimates that occur on or after the beginning of that period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **IAS 12 Income tax (CPC 32):** 

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In May 2022, CVM has approved amendments to CPC32 which determines that entities must recognize deferred taxes on transactions that on initial recognition generate equal amounts of taxable and deductible temporary differences, exemplifying lease transactions and decommissioning and restoration costs. The amendments will be effective for periods beginning on or after January 1st, 2023

&nbsp;&nbsp;&nbsp;&nbsp;• **IFRS 17 - Insurance Contracts (CPC 50):**

In June 2020, the IASB published amendments to IFRS 17 and postponed the date of adoption for annual periods beginning on or after January 1st, 2023, and later in December 2021, published additional amendments regarding the presentation of comparative information.

IFRS 17 establishes the principles for recognition, measurement, presentation and disclosure of insurance contracts and replaces IFRS 4 – Insurance Contracts (CPC 11).

The new and amended standards, which are effective for annual reporting periods beginning after December 31, 2022, are not expected to have a significant impact on the Company's financial statements.

4. CASH AND CASH EQUIVALENTS

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|  | **Average rate (1)** | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **Average rate (1)** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Cash and bank accounts** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Dollar |  | **539** | 558 | **946999** | 946790 |
| &nbsp;&nbsp;&nbsp;Saudi Riyal |  | **-** |  | **307440** | 312728 |
| &nbsp;&nbsp;&nbsp;Brazilian Reais |  | **139928** | 160309 | **154399** | 185941 |
| &nbsp;&nbsp;&nbsp;Euro |  | **141** | 1438 | **93321** | 103630 |
| &nbsp;&nbsp;&nbsp;Turkish Lira |  | **-** |  | **83339** | 42899 |
| &nbsp;&nbsp;&nbsp;Other currencies |  | **116** | 140 | **279579** | 601520 |
|  |  | **140724** | 162445 | **1865077** | 2193508 |
| **Cash equivalents** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;In Brazilian Reais |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment funds | 12.21% | **3492** | 3641 | **3492** | 3641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank deposit certificates | 13.24% | **3675037** | 4410146 | **3754202** | 4451214 |
|  |  | **3678529** | 4413787 | **3757694** | 4454855 |
| &nbsp;&nbsp;&nbsp;In U.S. Dollar |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term deposit | 2.25% | **154025** |  | **2469028** | 62043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overnight | 4.84% | **10793** | 57584 | **12720** | 701386 |
| &nbsp;&nbsp;&nbsp;Other currencies |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term deposit | 12.99% | **-** |  | **26410** | 117028 |
|  |  | **164818** | 57584 | **2508158** | 880457 |
|  |  | **3984071** | 4633816 | **8130929** | 7528820 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

5. MARKETABLE SECURITIES

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 52

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Average rate (2)** | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | <br>**WAM (1)** | <br>**Currency** | **Average rate (2)** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Fair value through other comprehensive income** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities (3) |  | USD |  | **-** |  | **11752** | 13338 |
| **Fair value through profit and loss** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial treasury bills | 1.79 | R$ | 12.25% | **364543** | 324771 | **364543** | 324771 |
| &nbsp;&nbsp;&nbsp;Investment funds - FIDC BRF | 1.08 | R$ |  | **15505** | 15438 | **15505** | 15438 |
| &nbsp;&nbsp;&nbsp;Repurchase agreement | 0.53 | R$ |  | **-** |  | **53809** | 5302 |
| &nbsp;&nbsp;&nbsp;Other | 0.08 | R$ / ARS |  | **-** |  | **21** | 16782 |
|  |  |  |  | **380048** | 340209 | **433878** | 362293 |
| **Amortized cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sovereign bonds and other (4) | 2.47 | AOA | 6.73% | **-** |  | **379145** | 418637 |
|  |  |  |  | **380048** | 340209 | **824775** | 794268 |
| Current |  |  |  | **364543** | 324771 | **418373** | 346855 |
| Non-current (5) |  |  |  | **15505** | 15438 | **406402** | 447413 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity in years.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(3) It's comprised of Aleph Farms Ltd. stocks.

&nbsp;&nbsp;&nbsp;&nbsp;(4) It's comprised of private securities and sovereign securities of the
Angola Government and are presented net of expected credit losses in the amount of R$15,231 (R$18,630 on December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;(5) Maturity until June of 2025.

On December 31, 2022, the amount of R$92,857 (R$232,821 on December 31, 2021) classified as cash and cash equivalents and marketable securities were pledged as guarantee, with no use restrictions, for future contracts traded on B3.

6. TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Trade accounts receivable** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Domestic market** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third parties | **1357535** | 1494760 | **1473921** | 1601048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties | **42162** | 15482 | **11566** | 9252 |
| &nbsp;&nbsp;&nbsp;**Foreign market** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third parties | **556882** | 570057 | **3315772** | 3077518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties | **4651972** | 5727237 | **20789** | 10124 |
|  | **6608551** | 7807536 | **4822048** | 4697942 |
| &nbsp;&nbsp;&nbsp;(-) Adjustment to present value | **(22866)** | (10688) | **(24818)** | (14394) |
| &nbsp;&nbsp;&nbsp;(-) Expected credit losses | **(558328)** | (588946) | **(604167)** | (638583) |
|  | **6027357** | 7207902 | **4193063** | 4044965 |
| Current | **6022298** | 7202530 | **4187756** | 4039155 |
| Non-current | **5059** | 5372 | **5307** | 5810 |
| &nbsp;&nbsp;&nbsp;Notes receivable | **54472** | 114563 | **54472** | 114565 |
| &nbsp;&nbsp;&nbsp;(-) Adjustment to present value | **(386)** | (1609) | **(386)** | (1610) |
| &nbsp;&nbsp;&nbsp;(-) Expected credit losses | **(15643)** | (15785) | **(15643)** | (15786) |
|  | **38443** | 97169 | **38443** | 97169 |
| Current | **27351** | 68001 | **27351** | 68001 |
| Non-current (1) | **11092** | 29168 | **11092** | 29168 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity of 1.50 year.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 53

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The Company performs credit assignments with no right of return to the BRF Clients' Credit Rights Investment Fund ("FIDC BRF"), which has the sole purpose to acquire credit rights arising from commercial transactions carried out between the Company and its clients in Brazil. On December 31, 2022, FIDC BRF had an outstanding balance of R$947,488 (R$902,679 on December 31, 2021) in the Parent Company and Consolidated related to such credit rights, which were written-off of the Company's statement of financial position when the credits were sold.

On December 31, 2022, other receivables are mainly represented by receivables from the sale of farms and various properties, with a balance of R$39,783 (R$88,098 on December 31, 2021).

The movements of the expected credit losses are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Parent company** | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **(588946)** | (555712) | **(638583)** | (605940) |
| &nbsp;&nbsp;&nbsp;(Additions) Reversals | **(10916)** | (9347) | **(12772)** | (12799) |
| &nbsp;&nbsp;&nbsp;Write-offs | **10236** | 6351 | **10744** | 15685 |
| &nbsp;&nbsp;&nbsp;Exchange rate variation | **31298** | (30238) | **36444** | (35529) |
| **Ending balance** | **(558328)** | (588946) | **(604167)** | (638583) |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 54

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The aging of trade accounts receivable is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Not overdue | **6027068** | 7199276 | **4045146** | 3933343 |
| **Overdue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; 01 to 60 days | **11774** | 21934 | **125082** | 127249 |
| &nbsp;&nbsp;&nbsp; 61 to 90 days | **2364** | 1036 | **7629** | 6241 |
| &nbsp;&nbsp;&nbsp; 91 to 120 days | **1291** | 794 | **17084** | 3770 |
| &nbsp;&nbsp;&nbsp; 121 to 180 days | **6976** | 1481 | **18536** | 3002 |
| &nbsp;&nbsp;&nbsp; 181 to 360 days | **7678** | 4950 | **17902** | 9687 |
| &nbsp;&nbsp;&nbsp;More than 360 days | **551400** | 578065 | **590669** | 614650 |
| (-) Adjustment to present value | **(22866)** | (10688) | **(24818)** | (14394) |
| (-) Expected credit losses | **(558328)** | (588946) | **(604167)** | (638583) |
|  | **6027357** | 7207902 | **4193063** | 4044965 |

---

7. INVENTORIES

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Finished goods | **2753055** | 3170964 | **4885465** | 4914882 |
| Work in progress | **396083** | 253801 | **435018** | 272997 |
| Raw materials | **1863819** | 2768167 | **2086963** | 3126017 |
| Packaging materials | **130797** | 145392 | **181193** | 182501 |
| Secondary materials | **658953** | 755623 | **705692** | 790801 |
| Supplies | **164963** | 190693 | **230092** | 250475 |
| Imports in transit | **229886** | 115873 | **230133** | 115950 |
| Other | **111242** | 141322 | **111648** | 142490 |
| (-) Adjustment to present value (1) | **(201757)** | (138332) | **(205313)** | (141243) |
|  | **6107041** | 7403503 | **8660891** | 9654870 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The adjustment refers to the counter-entry of the adjustment of present value
from trade accounts payable and supply chain finance and is carried out for cost according to inventories turnover.

The movements in the write-down of inventories to the net realizable value, for which the additions, reversals and write-offs were recorded against Cost of Sales, are presented in the table below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 55

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **Realizable value through sale** | **Realizable value through sale** | **Impaired inventories** | **Impaired inventories** | **Obsolete inventories** | **Obsolete inventories** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **(19103)** | (23957) | **(45084)** | (23579) | **(5790)** | (7715) | **(69977)** | (55251) |
| &nbsp;&nbsp;&nbsp;Additions | (312133) | (124735) | (157174) | (98090) | (6326) | (7757) | **(475633)** | (230582) |
| &nbsp;&nbsp;&nbsp;Reversals | 268967 | 129589 |  |  |  |  | **268967** | 129589 |
| &nbsp;&nbsp;&nbsp;Write-offs |  |  | 137674 | 76585 | 6817 | 9682 | **144491** | 86267 |
| **Ending balance** | **(62269)** | (19103) | **(64584)** | (45084) | **(5299)** | (5790) | **(132152)** | (69977) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Realizable value through sale** | **Realizable value through sale** | **Impaired inventories** | **Impaired inventories** | **Obsolete inventories** | **Obsolete inventories** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **(31026)** | (31155) | **(54015)** | (29831) | **(11654)** | (14719) | **(96695)** | (75705) |
| &nbsp;&nbsp;&nbsp;Additions | (343739) | (163274) | (193040) | (118691) | (9258) | (10047) | **(546037)** | (292012) |
| &nbsp;&nbsp;&nbsp;Reversals | 304977 | 163332 |  |  |  |  | **304977** | 163332 |
| &nbsp;&nbsp;&nbsp;Write-offs |  |  | 173648 | 94500 | 11075 | 13106 | **184723** | 107606 |
| &nbsp;&nbsp;&nbsp;Monetary correction by Hyperinflation | (22) |  | (311) |  | (170) |  | **(503)** |  |
| &nbsp;&nbsp;&nbsp;Exchange rate variation | 3139 | 71 | 24 | 7 | 63 | 6 | **3226** | 84 |
| **Ending balance** | **(66671)** | (31026) | **(73694)** | (54015) | **(9944)** | (11654) | **(150309)** | (96695) |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 56

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

8. BIOLOGICAL ASSETS

The live animals are represented by poultry and pork and segregated into consumables and animals for production. The rollforward of the biological assets are presented below:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **Current** | **Current** | **Current** | **Current** | **Current** | **Current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** |
|  | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** |  |  |  |  |
|  | **Poultry** | **Poultry** | **Pork** | **Pork** | **Total** | **Total** | **Poultry** | **Poultry** | **Pork** | **Pork** | **Forests** | **Forests** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **1040204** | 783706 | **1746488** | 1260582 | **2786692** | 2044288 | **505778** | 405030 | **540298** | 425252 | **320937** | 324444 | **1367013** | 1154726 |
| &nbsp;&nbsp;&nbsp;Additions/Transfer | 15567534 | 13757200 | 10711501 | 9480273 | **26279035** | 23237473 | 117999 | 93164 | 508042 | 455831 | 60489 | 41825 | **686530** | 590820 |
| &nbsp;&nbsp;&nbsp;Changes in fair value (1) | 2678737 | 2486821 | 302255 | 511574 | **2980992** | 2998395 | 65954 | 97787 | (287069) | (217418) | 33840 | 16443 | **(187275)** | (103188) |
| &nbsp;&nbsp;&nbsp;Harvest |  |  |  |  | **-** |  |  |  |  |  | (67546) | (57818) | **(67546)** | (57818) |
| &nbsp;&nbsp;&nbsp;Write-off |  |  |  |  | **-** |  |  |  |  |  | (558) | (3957) | **(558)** | (3957) |
| &nbsp;&nbsp;&nbsp;Transfer between currentand non-current | 92415 | 90203 | 147400 | 123367 | **239815** | 213570 | (92415) | (90203) | (147400) | (123367) |  |  | **(239815)** | (213570) |
| &nbsp;&nbsp;&nbsp;Transfer to inventories | (18252233) | (16077726) | (11031043) | (9629308) | **(29283276)** | (25707034) |  |  |  |  |  |  | **-** |  |
| **Ending balance** | **1126657** | 1040204 | **1876601** | 1746488 | **3003258** | 2786692 | **597316** | 505778 | **613871** | 540298 | **347162** | 320937 | **1558349** | 1367013 |
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Current** | **Current** | **Current** | **Current** | **Current** | **Current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** | **Non-current** |
|  | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** | **Live animals** |  |  |  |  |
|  | **Poultry** | **Poultry** | **Pork** | **Pork** | **Total** | **Total** | **Poultry** | **Poultry** | **Pork** | **Pork** | **Forests** | **Forests** | **Total** | **Total** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **1153433** | 868428 | **1746488** | 1260582 | **2899921** | 2129010 | **553247** | 472053 | **540298** | 425252 | **320937** | 324444 | **1414482** | 1221749 |
| &nbsp;&nbsp;&nbsp;Additions/Transfer | 17742074 | 14078311 | 10711501 | 9480273 | **28453575** | 23558584 | 169192 | 97765 | 508042 | 455831 | 60489 | 41825 | **737723** | 595421 |
| &nbsp;&nbsp;&nbsp;Changes in fair value (1) | 3618570 | 2628793 | 302255 | 511574 | **3920825** | 3140367 | 65364 | 105385 | (287069) | (217418) | 33840 | 16443 | **(187865)** | (95590) |
| &nbsp;&nbsp;&nbsp;Harvest |  |  |  |  | **-** |  |  |  |  |  | (67546) | (57818) | **(67546)** | (57818) |
| &nbsp;&nbsp;&nbsp;Write-off |  |  |  |  | **-** |  |  |  |  |  | (558) | (3957) | **(558)** | (3957) |
| &nbsp;&nbsp;&nbsp;Transfer between currentand non-current | 119621 | 91890 | 147400 | 123367 | **267021** | 215257 | (119621) | (91890) | (147400) | (123367) |  |  | **(267021)** | (215257) |
| &nbsp;&nbsp;&nbsp;Transfer to inventories | (21313444) | (16469201) | (11031043) | (9629308) | **(32344487)** | (26098509) |  |  |  |  |  |  | **-** |  |
| &nbsp;&nbsp;&nbsp;Exchange variation | (49156) | (44788) |  |  | **(49156)** | (44788) | (21437) | (30066) |  |  |  |  | **(21437)** | (30066) |
| &nbsp;&nbsp;&nbsp;Monetary correction by Hyperinflation | 3852 |  |  |  | **3852** |  | 41355 |  |  |  | **-** |  | **41355** |  |
| **Ending balance** | **1274950** | 1153433 | **1876601** | 1746488 | **3151551** | 2899921 | **688100** | 553247 | **613871** | 540298 | **347162** | 320937 | **1649133** | 1414482 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The change in the fair value of biological assets includes depreciation of
breeders and depletion of forests in the amount of R$1,136,919 in the Parent Company (R$943,789 on December 31, 2021) and R$1,214,002
(R$1,030,491 on December 31, 2021) in the Consolidated.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 57

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The book value and estimated quantities of live animals are set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 |
| | **Quantity<br> (thousand of heads)** | **Book value** | Quantity<br> (thousand of heads) | Book value |
| **Consumable biological assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Immature poultry | **176226** | **1126657** | 176802 | 1040204 |
| &nbsp;&nbsp;&nbsp;Immature pork | **4220** | **1876601** | 4469 | 1746488 |
| **Total current** | **180446** | **3003258** | 181271 | 2786692 |
| **Production biological assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Immature poultry | **6187** | **207795** | 5510 | 174706 |
| &nbsp;&nbsp;&nbsp;Mature poultry | **10287** | **389521** | 10420 | 331072 |
| &nbsp;&nbsp;&nbsp;Immature pork | **215** | **140559** | 223 | 141101 |
| &nbsp;&nbsp;&nbsp;Mature pork | **450** | **473312** | 452 | 399197 |
| **Total non-current** | **17139** | **1211187** | 16605 | 1046076 |
|  | **197585** | **4214445** | 197876 | 3832768 |
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 |
|  | **Quantity<br> (thousand of heads)** | **Book value** | Quantity<br> (thousand of heads) | Book value |
| **Consumable biological assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Immature poultry | **195139** | **1274950** | 197859 | 1153433 |
| &nbsp;&nbsp;&nbsp;Immature pork | **4220** | **1876601** | 4469 | 1746488 |
| **Total current** | **199359** | **3151551** | 202328 | 2899921 |
| **Production biological assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Immature poultry | **6958** | **235582** | 6170 | 192017 |
| &nbsp;&nbsp;&nbsp;Mature poultry | **11394** | **452518** | 11621 | 361230 |
| &nbsp;&nbsp;&nbsp;Immature pork | **215** | **140559** | 223 | 141101 |
| &nbsp;&nbsp;&nbsp;Mature pork | **450** | **473312** | 452 | 399197 |
| **Total non-current** | **19017** | **1301971** | 18466 | 1093545 |
|  | **218376** | **4453522** | 220794 | 3993466 |

---

The Company has forests pledged as collateral for financing and tax and civil contingencies on December 31, 2022 in the amount of R$59,388 in the Parent Company and in the Consolidated (R$69,308 in the Parent Company and in the Consolidated on December 31, 2021).

8.1. Sensitivity analysis

The fair value of animals and forests is determined using unobservable inputs, , therefore it is classified in the Level 3 of the fair value hierarchy. The main assumptions used in the measurement of the fair value of forests and their impact on measurement are presented below.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 58

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **The estimated fair value can change if:** | **The estimated fair value can change if:** |
| <br>**Asset** | <br>**Valuation methodology** | <br>**Non observable significant inputs** | **Increase** | **Decrease** |
| Forests | Income approach | Estimated price of standing wood | Increase in the price of wood | Decrease in the price of wood |
| Forests | Income approach | Productivity per hectare estimated | Increase in yield per hectare | Decrease in yield per hectare |
| Forests | Income approach | Harvest and transport cost | Decrease of harvest cost | Increase of harvest cost |
| Forests | Income approach | Discount rate | Descrease in discount rate | Increase in discount rate |
| Live animals | Cost approach | Price of the feed inputs | Increase in feed cost | Decrease in feed cost |
| Live animals | Cost approach | Storage costs | Increase in storage cost | Decrease in storage cost |
| Live animals | Cost approach | Outgrowers cost | Increase in outgrowers cost | Decrease in outgrowers cost |

---

The prices used in the valuation are those practiced in the regions where the Company is located and were obtained through market research. The discount rate corresponds to the average cost of capital and other economic assumptions for a market participant.

The weighted average price used in the valuation of biological assets (forests) on December 31, 2022 was equivalent to R$54.12 per stere (R$39.40 per stere on December 31, 2021). The real discount rate used in the valuation of the biological asset (forests) on December 31, 2022 was 7.89% p.a. (6.70% p.a. on December 31, 2021).

9. RECOVERABLE TAXES

The rollforward of recoverable taxes are set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | <br>**Note** | **12.31.21** | **Additions** | **Offset / Reversals** | **Transfers (1)** | **Interest** | **12.31.22** |
| **ICMS and VAT** | **9.1** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable ICMS and VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;1811678 | &nbsp;&nbsp;&nbsp;&nbsp;498068 | &nbsp;&nbsp;&nbsp;&nbsp;(180568) | (192244) | &nbsp;&nbsp;&nbsp;&nbsp;241 | **1937175** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (137589) | &nbsp;&nbsp;&nbsp;&nbsp;(28214) | 23334 | 16506 |  | **(125963)** |
| **PIS and COFINS** | **9.2** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable PIS and COFINS |  | &nbsp;&nbsp;&nbsp;&nbsp;2658067 | &nbsp;&nbsp;&nbsp;&nbsp;645855 | &nbsp;&nbsp;&nbsp;&nbsp;(868909) |  | &nbsp;&nbsp;&nbsp;&nbsp;134561 | **2569574** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |  |  |  |  | **(14228)** |
| **IPI** | **9.3** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable IPI |  | &nbsp;&nbsp;&nbsp;&nbsp;928037 | 18533 | (8343) |  | 76416 | **1014643** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1984) |  | 1984 |  |  | **-** |
| **INSS** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable INSS |  | &nbsp;&nbsp;&nbsp;&nbsp;318126 | 44697 | (18314) |  | 21715 | **366224** |
| **Other** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other recoverable taxes |  | 85803 | 22637 | (1908) |  |  | **106532** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (530) | (575) | 13 | - | - | **(1092)** |
|  |  | **5647380** | **1201001** | **(1052711)** | **(175738)** | **232933** | **5852865** |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;881927 |  |  |  |  | **931093** |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;4765453 |  |  |  |  | **4921772** |
|  |  | **12.31.21** | **Additions** | **Offset / Reversals** | **Transfers (1)** | **Restatement** | **12.31.22** |
| **Income taxes** | **9.4** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;240652 | &nbsp;&nbsp;&nbsp;&nbsp;117657 | (26553) |  | &nbsp;&nbsp;&nbsp;&nbsp;3278 | **335034** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(15889) | - | - | - | - | **(15889)** |
|  |  | **224763** | **117657** | **(26553)** | **-** | **3278** | **319145** |
| Current |  | 29784 |  |  |  |  | **85856** |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;194979 |  |  |  |  | **233289** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The transfers occur from Recoverable Taxes to Other Current Assets and Other
Non-Current Assets when sales of credits are made to third parties.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 59

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company |
| | <br>Note | 12.31.20 | Additions | Offset / Reversals | Transfers (1) | Interest | 12.31.21 |
| ICMS and VAT | 9.1 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable ICMS and VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;1483612 | &nbsp;&nbsp;&nbsp;&nbsp;573009 | (84904) | (160278) | &nbsp;&nbsp;&nbsp;&nbsp;239 | &nbsp;&nbsp;&nbsp;&nbsp;1811678 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (154721) | &nbsp;&nbsp;&nbsp;&nbsp;(30396) | 29133 | 18395 |  | (137589) |
| PIS and COFINS | 9.2 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable PIS and COFINS |  | &nbsp;&nbsp;&nbsp;&nbsp;3167001 | &nbsp;&nbsp;&nbsp;&nbsp;467854 | (1053651) |  | 76863 | &nbsp;&nbsp;&nbsp;&nbsp;2658067 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |
| IPI | 9.3 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable IPI |  | &nbsp;&nbsp;&nbsp;&nbsp;808524 | &nbsp;&nbsp;&nbsp;&nbsp;6888 | (2356) |  | &nbsp;&nbsp;&nbsp;&nbsp;114981 | &nbsp;&nbsp;&nbsp;&nbsp;928037 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1984) |  |  |  |  | (1984) |
| INSS |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable INSS |  | &nbsp;&nbsp;&nbsp;&nbsp;341824 | 36829 | (66810) |  | &nbsp;&nbsp;&nbsp;&nbsp;6283 | &nbsp;&nbsp;&nbsp;&nbsp;318126 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (102) | &nbsp;&nbsp;&nbsp;&nbsp;102 |  |  |  |  |
| Other |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other recoverable taxes |  | 52115 | 34645 | (957) |  |  | 85803 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1484) | 97 | 857 | - | - | (530) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;5680557 | &nbsp;&nbsp;&nbsp;&nbsp;1089028 | (1178688) | (141883) | &nbsp;&nbsp;&nbsp;&nbsp;198366 | &nbsp;&nbsp;&nbsp;&nbsp;5647380 |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;812338 |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;881927 |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;4868219 |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4765453 |
|  | Note | 12.31.20 | Additions | Offset / Reversals | Transfers (1) | Restatement | 12.31.21 |
| Income taxes | 9.4 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable income taxes |  | 91996 | &nbsp;&nbsp;&nbsp;&nbsp;178387 | (29749) |  | 18 | &nbsp;&nbsp;&nbsp;&nbsp;240652 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (8985) | (6904) | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;(15889) |
|  |  | 83011 | &nbsp;&nbsp;&nbsp;&nbsp;171483 | (29749) | - | 18 | &nbsp;&nbsp;&nbsp;&nbsp;224763 |
| Current |  | 28888 |  |  |  |  | 29784 |
| Non-current |  | 54123 |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;194979 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | <br>**Note** | **12.31.21** | **Additions** | **Offset / Reversals** | **Transfers (1)** | **Interest** | **Exchange variation** | **12.31.22** |
| **ICMS and VAT** | **9.1** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable ICMS and VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;1886027 | &nbsp;&nbsp;&nbsp;&nbsp;768497 | &nbsp;&nbsp;&nbsp;&nbsp;(216040) | (192244) | &nbsp;&nbsp;&nbsp;&nbsp;242 | (27025) | **2219457** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (137854) | &nbsp;&nbsp;&nbsp;&nbsp;(28214) | 23332 | 16507 |  |  | **(126229)** |
| **PIS and COFINS** | **9.2** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable PIS and COFINS |  | &nbsp;&nbsp;&nbsp;&nbsp;2685276 | &nbsp;&nbsp;&nbsp;&nbsp;649054 | &nbsp;&nbsp;&nbsp;&nbsp;(880317) |  | 134561 |  | **2588574** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |  |  |  |  |  | **(14228)** |
| **IPI** | **9.3** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable IPI |  | &nbsp;&nbsp;&nbsp;&nbsp;929645 | 18700 | (8388) |  | 76416 |  | **1016373** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1984) |  | 1984 |  |  |  | **-** |
| **INSS** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable INSS |  | &nbsp;&nbsp;&nbsp;&nbsp;318138 | 46537 | (20154) |  | 21715 |  | **366236** |
| **Other** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other recoverable taxes |  | 92216 | 22767 | (7265) |  |  | (135) | **107583** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1007) | (575) | 33 | - | - | - | **(1549)** |
|  |  | **5756229** | **1476766** | **(1106815)** | **(175737)** | **232934** | **(27160)** | **6156217** |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;976133 |  |  |  |  |  | **1229272** |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;4780096 |  |  |  |  |  | **4926945** |
|  |  | **12.31.21** | **Additions** | **Offset / Reversals** | **Transfers (1)** | **Interest** | **Exchange variation** | **12.31.22** |
| **Income taxes** | **9.4** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;294050 | &nbsp;&nbsp;&nbsp;&nbsp;203796 | (55895) |  | &nbsp;&nbsp;&nbsp;&nbsp;3280 | (10839) | **434392** |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(15933) | 36 | - | - | - | - | **(15897)** |
|  |  | **278117** | **203832** | **(55895)** | **-** | **3280** | **(10839)** | **418495** |
| Current |  | 71762 |  |  |  |  |  | **173596** |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;206355 |  |  |  |  |  | **244899** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The transfers occur from Recoverable Taxes to Other Current Assets and Other
Non-Current Assets when sales of credits are made to third parties.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 60

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | <br>Note | 12.31.20 | Business combination | Additions | Offset / Reversals | Transfers (1) | Interest | Exchange variation | 12.31.21 |
| ICMS and VAT | 9.1 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable ICMS and VAT |  | &nbsp;&nbsp;&nbsp;&nbsp;1568975 | &nbsp;&nbsp;&nbsp;&nbsp;6479 | &nbsp;&nbsp;&nbsp;&nbsp;668918 | &nbsp;&nbsp;&nbsp;&nbsp;(185750) | (160278) | &nbsp;&nbsp;&nbsp;&nbsp;239 | (12556) | &nbsp;&nbsp;&nbsp;&nbsp;1886027 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (154721) |  | &nbsp;&nbsp;&nbsp;&nbsp;(30661) | 29133 | 18395 |  |  | (137854) |
| PIS and COFINS | 9.2 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable PIS and COFINS |  | &nbsp;&nbsp;&nbsp;&nbsp;3168099 | 34259 | &nbsp;&nbsp;&nbsp;&nbsp;471560 | (1065504) |  | 76862 |  | &nbsp;&nbsp;&nbsp;&nbsp;2685276 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(14228) |
| IPI | 9.3 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable IPI |  | &nbsp;&nbsp;&nbsp;&nbsp;808528 | &nbsp;&nbsp;&nbsp;&nbsp;1109 | &nbsp;&nbsp;&nbsp;&nbsp;7392 | (2363) |  | 114979 |  | &nbsp;&nbsp;&nbsp;&nbsp;929645 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1984) |  |  |  |  |  |  | (1984) |
| INSS |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable INSS |  | &nbsp;&nbsp;&nbsp;&nbsp;341825 | 12 | 36829 | (66810) |  | &nbsp;&nbsp;&nbsp;&nbsp;6282 |  | &nbsp;&nbsp;&nbsp;&nbsp;318138 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (102) |  | &nbsp;&nbsp;&nbsp;&nbsp;102 |  |  |  |  |  |
| Other |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other recoverable taxes |  | 52889 | &nbsp;&nbsp;&nbsp;&nbsp;3995 | 39427 | (4057) |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(38) | 92216 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (1963) | - | 99 | 857 | - | - | - | (1007) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;5767318 | 45854 | &nbsp;&nbsp;&nbsp;&nbsp;1193666 | (1294494) | (141883) | 198362 | (12594) | &nbsp;&nbsp;&nbsp;&nbsp;5756229 |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;899120 |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;976133 |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;4868198 |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;4780096 |
|  | Note | 12.31.20 | Business combination | Additions | Offset / Reversals | Transfers (1) | Interest | Exchange variation | 12.31.21 |
| Income taxes | 9.4 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoverable income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;107728 | 922 | &nbsp;&nbsp;&nbsp;&nbsp;246162 | (60058) |  | 18 | (722) | &nbsp;&nbsp;&nbsp;&nbsp;294050 |
| &nbsp;&nbsp;&nbsp;(-) Impairment |  | (9029) | - | (6904) | - | - | - | - | &nbsp;&nbsp;&nbsp;&nbsp;(15933) |
|  |  | 98699 | 922 | &nbsp;&nbsp;&nbsp;&nbsp;239258 | (60058) | - | 18 | (722) | &nbsp;&nbsp;&nbsp;&nbsp;278117 |
| Current |  | 43840 |  |  |  |  |  |  | 71762 |
| Non-current |  | 54859 |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;206355 |

---

9.1. ICMS – Tax on Movement of Goods and Services and VAT – Value Added Taxes

As result of the activity, the Company generates recoverable ICMS balances that are offset against ICMS payables arising from sales in the domestic market or that are transferred to third parties.

The Company has recoverable ICMS balances in the States of Paraná, Santa Catarina, Mato Grosso do Sul, Minas Gerais and Amazonas, which will be realized in the short and long term, based on the recoverability study reviewed and approved by the Management.

In other jurisdictions outside Brazil, value added taxes (VAT) are due in regular operations of the Company with goods and services.

9.2. PIS and COFINS –Social Integration Plan and Contribution for Social Security Financing

The accumulated recoverable PIS and COFINS balances arise from taxes on raw material purchases subsequently used in the production of exported products or products for which sale is not taxed, , as well as recoverable taxes on commercial and labor expenses. The realization of these balances usually occurs through the offsetting with taxes payable on sales of taxed products in the domestic market, with other federal taxes and social security contributions payable, or even, if necessary, through refund or reimbursement requests.

As of December 31, 2022, the updated balance of the processes related to the exclusion of the ICMS from the PIS and COFINS calculation basis recognized by the Company is R$2,091,340 (R$2,341,737 as of December 31, 2021). The amount of R$384,956 related do these credits was offset against other federal taxes for the year ended December 31, 2022 (R$628,557 for the year ended December 31, 2021).

9.3. IPI - Industrialized Product Tax

The Company recognized tax assets as result of gains from lawsuits related to IPI, specially "*crédito prêmio*". The balance referring to these assets in the Parent Company and Consolidated on December 31, 2022 is R$1,030,940 (R$945,845 for the year ended December 31, 2021), of which R$1,008,683 (R$919,982 for the year ended December 31, 2021) is recorded as Recoverable Taxes and the remainder, referring to cases in which the government will reimburse in cash, is recorded as Other Non-Current Assets, in the amount of R$22,257 (R$16,927 for the year ended December 31, 2021).

9.4. Income Taxes

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 61

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|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The accumulated recoverable income taxes arise, mostly, from withholding taxes on securities, interest and prepayments of income tax and social contribution in Brazil. The realization occurs through the offset with federal taxes and contributions payable.

9.5. Realization of Brazilian federal tax credits

The Company received in cash, through court orders related to recoverable IPI balances, the amount of R$8,936 for the year ended December 31, 2022 in the Parent Company and Consolidated (R$32,802 for the year ended December 31, 2021).

The Company used PIS, COFINS, IPI, IRPJ, CSLL, INSS and other recoverable taxes to offset federal taxes payable such as INSS and Income Taxes in the amount of R$924,027 in the Parent Company and Consolidated for the year ended December 31, 2022 (R$1,153,520 in the Parent Company and Consolidated for the year ended December 31, 2021), preserving its liquidity and optimizing its capital structure.

10. DEFERRED INCOME TAXES

10.1. Breakdown

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax losses carryforward | **2770926** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2805912 | **2800162** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2822754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Negative calculation basis (social contribution) | **997533** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1040511 | **1008058** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1046574 |
| &nbsp;&nbsp;&nbsp;**Temporary differences - Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for tax, civil and labor risks | **417613** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;456206 | **420470** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;458229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected credit losses | **178815** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184230 | **183504** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment on tax credits | **57083** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64297 | **57083** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for other obligations | **129821** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;136571 | **146652** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees' profit sharing | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47227 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down to net realizable value of inventories | **44932** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25204 | **48744** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees' benefits plan | **117851** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137174 | **138451** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;148990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease basis difference | **132841** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95563 | **132841** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on derivatives, net | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21310 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other temporary differences | **14924** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20501 | **31930** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42566 |
|  | **4862339** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5034706 | **4967895** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5110696 |
| &nbsp;&nbsp;&nbsp;**Temporary differences - Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization basis difference | **(323005)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(307442) | **(323005)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(307442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation (useful life) basis difference | **(926094)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(884245) | **(947303)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(895407) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business combination (1) | **(987477)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(900108) | **(1003955)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(920214) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Monetary correction by Hyperinflation | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **(85997)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on derivatives, net | **(75046)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **(73998)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized fair value gains, net | **(71086)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37109) | **(71617)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37692) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other temporary differences | **(3297)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20415) | **(7022)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32381) |
|  | **(2386005)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2149319) | **(2512897)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2193136) |
| **Total deferred taxes** | **2476334** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2885387 | **2454998** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2917560 |
| **Total Assets** | **2476334** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2885387 | **2566461** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2941270 |
| **Total Liabilities** | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **(111463)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23710) |
|  | **2476334** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2885387 | **2454998** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2917560 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The deferred tax liability on business combination is substantially represented
by the allocation of goodwill to property, plant and equipment, brands and contingent liabilities.

The roll-forward of deferred income taxes, net, is set forth below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 62

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Parent company** | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **2885387** | 2068769 | **2917560** | 2082537 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes recognized in income from continuing operations | **(233898)** | &nbsp;&nbsp;&nbsp;&nbsp;779862 | **(208060)** | &nbsp;&nbsp;&nbsp;&nbsp;807744 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes recognized in other comprehensive income | **(175110)** | 8738 | **(175110)** | 8738 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes recognized in loss from discontinued operations | **-** | 28018 | **-** | 28018 |
| &nbsp;&nbsp;&nbsp;Deferred taxes recognized in accumulated losses - monetary correction by hyperinflation | **-** |  | **(32655)** |  |
| &nbsp;&nbsp;&nbsp;Other (1) | **(45)** |  | **(46737)** | &nbsp;&nbsp;&nbsp;&nbsp;(9477) |
| **Ending balance** | **2476334** | 2885387 | **2454998** | 2917560 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Related to the foreign exchange variation effect on the balances in foreign
companies.

10.2. Estimated period of realization

Deferred tax assets arising from temporary differences will be realized as the differences are settled or realized. The period of settlement or realization of such differences is subject to externalities and is linked to several factors that are not under the control of Management.

In estimating the realization of deferred tax credits on tax losses carryforward, Management considers its budget and strategic plans, which were approved by the Board of Directors, adjusted for changes in economic assumptions and based on the estimates of the main tax additions and exclusions. The recoverability study is reviewed by the Fiscal Council and approved by the Board of Directors annually. Based on this estimate, Management believes that it is probable that these deferred tax credits will be realized, as presented below:

---

| | | |
|:---|:---|:---|
| | **Parent company** | **Consolidated** |
| 2023 | **408784** | **413147** |
| 2024 | **111350** | **111350** |
| 2025 | **216448** | **229380** |
| 2026 | **326120** | **329550** |
| 2027 | **412560** | **430581** |
| 2028 to 2030 | **1322896** | **1323780** |
| 2031 and 2032 | **970301** | **970432** |
|  | **3768459** | **3808220** |

---

The Company has tax losses carryforward in Brazil, which at current tax rates represent R$7,131,786 on December 31, 2022 (R$6,204,203 on December 31, 2021). Within this amount, R$3,768,459 on December 31, 2022 and (R$3,846,423 on December 31, 2021) are recognized as an asset, according to the recoverability expectation. The deferred tax credits on tax losses and negative social contribution basis related to the Parent Company and its subsidiaries domiciled in Brazil do not expire and the use to offset income taxes payable is limited to 30% of future taxable income, with the exception of the amount of R$408,784 that the Company will use to offset the debt arising from the Leniency Agreement entered into with the Federal Government (note 1.3).

10.3. Effective income tax rate reconciliation

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 63

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Loss before taxes - continued operations | &nbsp;&nbsp;&nbsp;&nbsp;(2902148) | &nbsp;&nbsp;&nbsp;&nbsp;(125082) | &nbsp;&nbsp;&nbsp;&nbsp;(2805044) | (34788) |
| &nbsp;&nbsp;&nbsp;Nominal tax rate | 34% | 34% | 34% | 34% |
| &nbsp;&nbsp;&nbsp;**Benefit at nominal rate** | **986730** | &nbsp;&nbsp;&nbsp;&nbsp;42528 | **953715** | &nbsp;&nbsp;&nbsp;&nbsp;11828 |
| &nbsp;&nbsp;&nbsp;Adjustments to income taxes |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from associates and joint ventures | **(285734)** | **294952** | **366** | 8626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Difference of tax rates on results of foreign subsidiaries | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **212753** | 244822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Difference of functional currency of foreign subsidiaries | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(538002)** | &nbsp;&nbsp;&nbsp;&nbsp;(129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets not recognized (1) | **(967139)** | &nbsp;&nbsp;&nbsp;&nbsp;(840523) | **(967103)** | &nbsp;&nbsp;&nbsp;&nbsp;(840457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition of tax assets from previous years | **(77964)** | 1025000 | **(77964)** | 1025000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on taxes | **83102** | 104177 | **83235** | 104789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Profits taxed by foreign jurisdictions | **(30899)** | (32770) | **(31400)** | (33455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payment | **(16600)** | (24454) | **(16600)** | (24454) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer price | **(24995)** | (71634) | **(24995)** | (71634) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Penalties | **(5325)** | (11042) | **(5320)** | (11042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax paid on international subsidiaries | **20626** | &nbsp;&nbsp;&nbsp;&nbsp;- | **21061** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment grant | **114913** | 109591 | **114913** | 109591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other permanent differences | **(10022)** | &nbsp;&nbsp;&nbsp;&nbsp;28642 | **(10293)** | &nbsp;&nbsp;&nbsp;&nbsp;28617 |
|  | **(213307)** | 624467 | **(285634)** | 552102 |
| **Effective rate** | **-7.3%** | 499.2% | **-10.2%** | 1587.0% |
| Current tax | **20591** | &nbsp;&nbsp;&nbsp;&nbsp;(155395) | **(77574)** | &nbsp;&nbsp;&nbsp;&nbsp;(255642) |
| Deferred tax | **(233898)** | 779862 | **(208060)** | 807744 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount related to the non-recognition of deferred tax on tax losses carryforward
in the Parent Company and in the Consolidated, due to limited capacity of realization (note 10.2).

The Company's management determined that the total profits recorded by the holdings of its wholly-owned subsidiaries abroad will not be redistributed. Such funds will be used for investments in the wholly-owned subsidiaries.

Income tax returns in Brazil are subject to review by the tax authorities for a period of five years from the date of their delivery. The Company may be subject to additional collection of taxes, fines and interest as a result of these reviews. The results obtained by subsidiaries abroad are subject to taxation in accordance with the tax laws of each country.

11. JUDICIAL DEPOSITS

The rollforward of the judicial deposits is set forth below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **Tax** | **Tax** | **Labor** | **Labor** | **Civil, commercial and other** | **Civil, commercial and other** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **257244** | 248990 | **245136** | 269747 | **43251** | &nbsp;&nbsp;&nbsp;&nbsp;34539 | **545631** | &nbsp;&nbsp;&nbsp;&nbsp;553276 |
| &nbsp;&nbsp;&nbsp;Additions | 3408 | 5002 | &nbsp;&nbsp;&nbsp;&nbsp;87648 | 100403 | &nbsp;&nbsp;&nbsp;&nbsp;19358 | &nbsp;&nbsp;&nbsp;&nbsp;10723 | **110414** | &nbsp;&nbsp;&nbsp;&nbsp;116128 |
| &nbsp;&nbsp;&nbsp;Release in favor of the Company | (74677) | (1743) | (34581) | (38346) | &nbsp;&nbsp;&nbsp;&nbsp;(780) | (1997) | **(110038)** | &nbsp;&nbsp;&nbsp;&nbsp;(42086) |
| &nbsp;&nbsp;&nbsp;Release in favor of the counterparty | (12402) | &nbsp;&nbsp;&nbsp;&nbsp;(207) | &nbsp;&nbsp;&nbsp;&nbsp;(116138) | &nbsp;&nbsp;&nbsp;&nbsp;(115268) | (3669) | (3717) | **(132209)** | (119192) |
| &nbsp;&nbsp;&nbsp;Interest | &nbsp;&nbsp;&nbsp;&nbsp;14858 | 5202 | &nbsp;&nbsp;&nbsp;&nbsp;11285 | &nbsp;&nbsp;&nbsp;&nbsp;28600 | 1810 | 3703 | **27953** | 37505 |
| **Ending balance** | **188431** | 257244 | **193350** | 245136 | **59970** | &nbsp;&nbsp;&nbsp;&nbsp;43251 | **441751** | &nbsp;&nbsp;&nbsp;&nbsp;545631 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 64

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Tax** | **Tax** | **Labor** | **Labor** | **Civil, commercial and other** | **Civil, commercial and other** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **259468** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;248990 | **246007** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;269812 | **44844** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34539 | **550319** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;553341 |
| &nbsp;&nbsp;&nbsp;Additions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3628 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88489 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100730 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24644 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12305 | **116761** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;118109 |
| &nbsp;&nbsp;&nbsp;Release in favor of the Company | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(74677) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1743) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34602) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38357) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(780) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1997) | **(110059)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42097) |
| &nbsp;&nbsp;&nbsp;Release in favor of the counterparty | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12402) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(236) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(116258) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115633) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6315) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3717) | **(134975)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(119586) |
| &nbsp;&nbsp;&nbsp;Business combination | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2132 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;859 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2991 |
| &nbsp;&nbsp;&nbsp;Interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15144 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5251 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11295 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28604 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2216 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3714 | **28655** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37569 |
| &nbsp;&nbsp;&nbsp;Exchange rate variation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **(25)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) |
| **Ending balance** | **191161** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259468 | **194906** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;246007 | **64609** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44844 | **450676** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;550319 |

---

12. INVESTMENTS

12.1. Partnership with AES Brasil Energia S.A.

On August 16, 2021, the Company executed an investment agreement with a subsidiary of AES Brasil Energia S.A. to incorporate an entity in partnership for the construction of a wind energy park for self-generation in the wind farm complex of Cajuína, Rio Grande do Norte, with an installed capacity of 160MWm (average Megawatt), generating 80MWm to be supplied to the Company by means of a 15-year power purchase agreement.

The transaction was initiated on March 14, 2022, with the subscription of the shares of Potengi Holdings S.A. and partial capital contribution by BRF S.A. in the amount of R$60,060. From that date, BRF became owner of 50% of the capital stock and 24% of the economic rights of Potengi Holdings S.A., affiliated entity. During the year ended on December 31, 2022, BRF S.A. made an additional capital contribution to the capital already subscribed, in the amount of R$32,031. The operation of the park is scheduled to begin by 2024.

12.2. Composition and rollforward the investments

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Investments | **13269785** | &nbsp;&nbsp;&nbsp;&nbsp;13269365 | **100481** | 6520 |
| &nbsp;&nbsp;&nbsp;Investment in subsidiaries | **13169304** | &nbsp;&nbsp;&nbsp;&nbsp;13262845 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Investment in affiliates | **100481** | 6520 | **100481** | 6520 |
| Other investments | **583** | 583 | **583** | 593 |
|  | **13270368** | &nbsp;&nbsp;&nbsp;&nbsp;13269948 | **101064** | 7113 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 65

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The rollforward of the direct investments in subsidiaries and affiliates of the Parent Company is set forth below:

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Subsidiaries** | **Affiliates** | **Affiliates** |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | **Total** | **Total** |
| | **BRF Energia S.A.** | **BRF GmbH** | **Establec. Levino Zaccardi** | **BRF Pet S.A.** | **PSA Labor. Veter. Ltda** | **Hercosul International S.R.L.** | **Sadia Alimentos S.A.** | **Proud Food Lda** | **Sadia Uruguay S.A.** | **Sadia Chile S.A.** | **Eclipse Holding Cooperatief** | **VIP S.A. Empr. e Particip. Imob** | **Potengi Holdings S.A. (1)** | **PR-SAD<br> Adm. Bem próprio S.A.** | **12.31.22** | 12.31.21 |
| **a) Participation as of December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of participation | 100.00% | 100.00% | 99.99% | 100.00% | 99.99% | 1.00% | 43.10% | 10.00% | 100.00% | 60.00% | 0.01% | 100.00% | 50.00% | 33.33% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total quantity of shares and quotas | 7176530 | 1897145 | 9918875 | 2087898669 | 5563850 | 200000 | 594576682 | 150000 | 2352881073 | 3027987368 | 10000 | 14249459 | 184199688 | 2826940 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantity of shares and quotas held | 7176530 | 1897145 | 9918538 | 2087898669 | 5563849 | &nbsp;&nbsp;&nbsp;&nbsp;2000 | 256253695 | &nbsp;&nbsp;&nbsp;&nbsp;15000 | 2352881073 | 1816792421 | 1 | 14249459 | &nbsp;&nbsp;&nbsp;&nbsp;92090655 | &nbsp;&nbsp;&nbsp;&nbsp;942313 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| **b) Information as of December 31, 2022** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share capital | 7177 | &nbsp;&nbsp;&nbsp;&nbsp;6523 | 1765 | 1323088 | 5564 | 94080 | 338054 | 3 | 497012 | &nbsp;&nbsp;&nbsp;&nbsp;16169 | &nbsp;&nbsp;&nbsp;&nbsp;334999 | &nbsp;&nbsp;&nbsp;&nbsp;1311 | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity | 508 | &nbsp;&nbsp;&nbsp;&nbsp;11785220 | &nbsp;&nbsp;&nbsp;&nbsp;58 | 1276539 | 8667 | 61547 | 4950 | 7202 | &nbsp;&nbsp;&nbsp;&nbsp;91906 | (66830) | (1559) | &nbsp;&nbsp;&nbsp;&nbsp;2511 | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of assets and liabilities acquired |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;132 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;292 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) for the period | (88) | (807247) | 154 | (21829) | 546 | &nbsp;&nbsp;&nbsp;&nbsp;895 | 3059 | 866 | (8498) | (4788) | (2489) | &nbsp;&nbsp;&nbsp;&nbsp;211 | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |
| **c) Movements of investments** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Beginning balance (12.31.21)** | 596 | &nbsp;&nbsp;&nbsp;&nbsp;12101820 | &nbsp;&nbsp;&nbsp;&nbsp;77 | 1051231 | 8121 | &nbsp;&nbsp;&nbsp;&nbsp;772 | 1942 | 614 | &nbsp;&nbsp;&nbsp;&nbsp;95322 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;2350 | &nbsp;&nbsp;&nbsp;&nbsp;- | 6520 | **13269365** | 11921742 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Result Movements** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) | (88) | (807247) | 154 | (21853) | 546 | &nbsp;&nbsp;&nbsp;&nbsp;297 | (1551) | &nbsp;&nbsp;&nbsp;&nbsp;87 | (8627) | (3400) |  | &nbsp;&nbsp;&nbsp;&nbsp;211 | 1076 |  | **(840395)** | 867505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends and interests on shareholders' equity |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;(50) | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **(50)** | &nbsp;&nbsp;&nbsp;&nbsp;(14) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Capital movements** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital increase (reduction) |  |  |  | 253348 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;32031 | 794 | **286173** | 1007008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital transaction between subsidiaries |  | 192144 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **192144** | &nbsp;&nbsp;&nbsp;&nbsp;856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of put option held by minority shareholders |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **-** | 20658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition (sale) of equity interest |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;60060 |  | **60060** | (1993) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Goodwill movements** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill on acquisition of non-controlling interests |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **-** | &nbsp;&nbsp;&nbsp;&nbsp;(79673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange rate variation on goodwill |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | (5) | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **(5)** | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  | 349452 | (173) | (6187) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(26) | 1743 | &nbsp;&nbsp;&nbsp;&nbsp;20 | 5212 | 1268 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **351309** | (454666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Constitution (reversal) of provision for loss |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 2132 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **2132** | 13455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations |  | (50948) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | **(50948)** | &nbsp;&nbsp;&nbsp;&nbsp;(25543) |
| **Ending balance (12.31.22)** | **508** | **11785221** | **58** | **1276539** | **8667** | **1038** | **2134** | **721** | **91907** | **-** | **-** | **2511** | **93167** | **7314** | **13269785** | 13269365 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Economic participation of 24%.

On December 31, 2022, these subsidiaries and affiliates do not have any restriction to amortize their loans or advances to the Company.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 66

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

13. PROPERTY, PLANT AND EQUIPMENT

The rollforward of property, plant and equipment is set forth below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | **Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **Transfers (2)** | **12.31.22** |
| **Cost** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land |  | 554968 | &nbsp;&nbsp;&nbsp;&nbsp;10289 | (10383) | 7602 | **562476** |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements |  | &nbsp;&nbsp;&nbsp;&nbsp;10436213 | 815232 | &nbsp;&nbsp;&nbsp;&nbsp;(121850) | 458893 | **11588488** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment |  | 8109401 | &nbsp;&nbsp;&nbsp;&nbsp;11464 | &nbsp;&nbsp;&nbsp;&nbsp;(230117) | 887631 | **8778379** |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures |  | 113358 | 575 | (3705) | &nbsp;&nbsp;&nbsp;&nbsp;19251 | **129479** |
| &nbsp;&nbsp;&nbsp;Vehicles |  | 203697 | &nbsp;&nbsp;&nbsp;&nbsp;46595 | (3688) | &nbsp;&nbsp;&nbsp;&nbsp;- | **246604** |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 1096575 | 1244779 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(1383156) | **958198** |
| &nbsp;&nbsp;&nbsp;Advances to suppliers |  | 7523 | (6097) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | **1426** |
|  |  | **20521735** | **2122837** | **(369743)** | **(9779)** | **22265050** |
| **Depreciation** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land (3) | 20.97% | (20305) | (6819) | 2069 | (3) | **(25058)** |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements | 11.00% | &nbsp;&nbsp;&nbsp;&nbsp;(4188543) | &nbsp;&nbsp;&nbsp;&nbsp;(650224) | 105667 | (93) | **(4733193)** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 6.30% | &nbsp;&nbsp;&nbsp;&nbsp;(4420596) | &nbsp;&nbsp;&nbsp;&nbsp;(496506) | 195649 | 299 | **(4721154)** |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures | 6.65% | (56748) | (6594) | 2841 | &nbsp;&nbsp;&nbsp;&nbsp;(202) | **(60703)** |
| &nbsp;&nbsp;&nbsp;Vehicles | 27.22% | &nbsp;&nbsp;&nbsp;&nbsp;(112332) | (66864) | 2592 | &nbsp;&nbsp;&nbsp;&nbsp;- | **(176604)** |
|  |  | **(8798524)** | **(1227007)** | **308818** | **1** | **(9716712)** |
|  |  | **11723211** | **895830** | **(60925)** | **(9778)** | **12548338** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Refers to the transfer of R$9,811
to intangible assets, R$15 from property, plant and equipment to goods in lending and R$(48) from assets held for sale.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Land depreciation refers to right-of-use
assets. The amount of R$3,631 of depreciation was recognized in the cost of formation of forests and will be realized in the result according
to the depletion (note 18.1).

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 67

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company |
| | Average rate (1) | 12.31.20 | Additions | Disposals | Transfers | 12.31.21 |
| Cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land |  | 560856 | 3581 | (17512) | 8043 | 554968 |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements |  | 9772665 | 353143 | &nbsp;&nbsp;&nbsp;&nbsp;(172241) | 482646 | &nbsp;&nbsp;&nbsp;&nbsp;10436213 |
| &nbsp;&nbsp;&nbsp;Machinery and equipment |  | 7864533 | 104750 | &nbsp;&nbsp;&nbsp;&nbsp;(230208) | 370326 | 8109401 |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures |  | 106031 | 391 | (3613) | &nbsp;&nbsp;&nbsp;&nbsp;10549 | 113358 |
| &nbsp;&nbsp;&nbsp;Vehicles |  | 209770 | 2210 | (9007) | 724 | 203697 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 595353 | 1394230 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(893008) | 1096575 |
| &nbsp;&nbsp;&nbsp;Advances to suppliers |  | 923 | 6600 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 7523 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;19110131 | 1864905 | &nbsp;&nbsp;&nbsp;&nbsp;(432581) | (20720) | &nbsp;&nbsp;&nbsp;&nbsp;20521735 |
| Depreciation |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land | 20.97% | (12648) | (8246) | 589 | &nbsp;&nbsp;&nbsp;&nbsp;- | (20305) |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements | 9.45% | &nbsp;&nbsp;&nbsp;&nbsp;(3683103) | &nbsp;&nbsp;&nbsp;&nbsp;(599231) | 102083 | (8292) | &nbsp;&nbsp;&nbsp;&nbsp;(4188543) |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 7.02% | &nbsp;&nbsp;&nbsp;&nbsp;(4127347) | &nbsp;&nbsp;&nbsp;&nbsp;(499058) | 198215 | 7594 | &nbsp;&nbsp;&nbsp;&nbsp;(4420596) |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures | 6.67% | (54722) | (5344) | 2632 | 686 | (56748) |
| &nbsp;&nbsp;&nbsp;Vehicles | 28.15% | (63753) | (56116) | 7532 | 5 | &nbsp;&nbsp;&nbsp;&nbsp;(112332) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(7941573) | &nbsp;&nbsp;&nbsp;&nbsp;(1167995) | 311051 | (7) | &nbsp;&nbsp;&nbsp;&nbsp;(8798524) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;11168558 | 696910 | &nbsp;&nbsp;&nbsp;&nbsp;(121530) | (20727) | &nbsp;&nbsp;&nbsp;&nbsp;11723211 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 68

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | **Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **Monetary correction by Hyperinflation** | **Transfers (2)** | **Exchange rate variation** | **12.31.22** |
| **Cost** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land |  | 710017 | &nbsp;&nbsp;&nbsp;&nbsp;10289 | (10715) | 56130 | &nbsp;&nbsp;&nbsp;&nbsp;7601 | (21771) | **751551** |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements |  | &nbsp;&nbsp;&nbsp;&nbsp;11294650 | 922240 | &nbsp;&nbsp;&nbsp;&nbsp;(130814) | 90634 | &nbsp;&nbsp;&nbsp;&nbsp;513309 | (69191) | **12620828** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment |  | 8735375 | &nbsp;&nbsp;&nbsp;&nbsp;21913 | &nbsp;&nbsp;&nbsp;&nbsp;(242875) | 281368 | &nbsp;&nbsp;&nbsp;&nbsp;1035129 | &nbsp;&nbsp;&nbsp;&nbsp;(100872) | **9730038** |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures |  | 150865 | 1141 | (5855) | 26735 | 23238 | (8515) | **187609** |
| &nbsp;&nbsp;&nbsp;Vehicles |  | 384289 | 246491 | (7080) | &nbsp;&nbsp;&nbsp;&nbsp;7141 | 10589 | (13758) | **627672** |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 1144725 | 1420309 | (2279) | 11632 | (1456540) | (22704) | **1095143** |
| &nbsp;&nbsp;&nbsp;Advances to suppliers |  | &nbsp;&nbsp;&nbsp;&nbsp;33109 | 8651 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | (135) | (9739) | **31886** |
|  |  | **22453030** | **2631034** | **(399618)** | **473640** | **133191** | **(246550)** | **25044727** |
| **Depreciation** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land (3) | 15.34% | (36788) | (12410) | 2401 | &nbsp;&nbsp;&nbsp;&nbsp;1090 | (4) | 1277 | **(44434)** |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements | 3.59% | &nbsp;&nbsp;&nbsp;&nbsp;(4494435) | &nbsp;&nbsp;&nbsp;&nbsp;(752798) | 114639 | &nbsp;&nbsp;&nbsp;&nbsp;8968 | &nbsp;&nbsp;&nbsp;&nbsp;(25989) | &nbsp;&nbsp;&nbsp;&nbsp;19239 | **(5130376)** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 6.25% | &nbsp;&nbsp;&nbsp;&nbsp;(4612648) | &nbsp;&nbsp;&nbsp;&nbsp;(556013) | 208582 | (105534) | (105596) | &nbsp;&nbsp;&nbsp;&nbsp;49452 | **(5121757)** |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures | 6.64% | (72820) | (9549) | 3883 | (13210) | (2913) | 4066 | **(90543)** |
| &nbsp;&nbsp;&nbsp;Vehicles | 22.85% | &nbsp;&nbsp;&nbsp;&nbsp;(195477) | &nbsp;&nbsp;&nbsp;&nbsp;(166428) | 5797 | (6175) | (8607) | 4157 | **(366733)** |
|  |  | **(9412168)** | **(1497198)** | **335302** | **(114861)** | **(143109)** | **78191** | **(10753843)** |
|  |  | **13040862** | **1133836** | **(64316)** | **358779** | **(9918)** | **(168359)** | **14290884** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Refers to the transfer of R$9,951
to intangible assets, R$15 from property, plant and equipment to goods in lending and R$(48) from assets held for sale.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Land depreciation refers to right-of-use
assets. The amount of R$3,631 of depreciation was recognized in the cost of formation of forests and will be realized in the result according
to the depletion (note 18.1).

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 69

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | Average rate (1) | 12.31.20 | Additions | Disposals | Business combination | Transfers | Exchange rate variation | 12.31.21 |
| Cost |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land |  | 608389 | 4799 | (19378) | &nbsp;&nbsp;&nbsp;&nbsp;27988 | &nbsp;&nbsp;&nbsp;&nbsp;100463 | (12244) | 710017 |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements |  | &nbsp;&nbsp;&nbsp;&nbsp;10444526 | 533269 | &nbsp;&nbsp;&nbsp;&nbsp;(183824) | &nbsp;&nbsp;&nbsp;&nbsp;95153 | &nbsp;&nbsp;&nbsp;&nbsp;413049 | (7523) | &nbsp;&nbsp;&nbsp;&nbsp;11294650 |
| &nbsp;&nbsp;&nbsp;Machinery and equipment |  | 8395520 | 111951 | &nbsp;&nbsp;&nbsp;&nbsp;(274290) | 165216 | &nbsp;&nbsp;&nbsp;&nbsp;391013 | (54035) | 8735375 |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures |  | 157085 | 3959 | (8076) | 5092 | &nbsp;&nbsp;&nbsp;&nbsp;4833 | (12028) | 150865 |
| &nbsp;&nbsp;&nbsp;Vehicles |  | 346218 | &nbsp;&nbsp;&nbsp;&nbsp;46768 | (29710) | 8637 | &nbsp;&nbsp;&nbsp;&nbsp;7844 | 4532 | 384289 |
| &nbsp;&nbsp;&nbsp;Construction in progress |  | 608255 | 1494087 | (18601) | 9915 | (937589) | (11342) | 1144725 |
| &nbsp;&nbsp;&nbsp;Advances to suppliers |  | &nbsp;&nbsp;&nbsp;&nbsp;12748 | &nbsp;&nbsp;&nbsp;&nbsp;42290 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(19437) | (2492) | &nbsp;&nbsp;&nbsp;&nbsp;33109 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;20572741 | 2237123 | &nbsp;&nbsp;&nbsp;&nbsp;(533879) | 312001 | &nbsp;&nbsp;&nbsp;&nbsp;(39824) | (95132) | &nbsp;&nbsp;&nbsp;&nbsp;22453030 |
| Depreciation |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Land | 15.34% | (13800) | (12106) | 2272 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(11954) | (1200) | (36788) |
| &nbsp;&nbsp;&nbsp;Buildings, facilities and improvements | 8.11% | &nbsp;&nbsp;&nbsp;&nbsp;(3851225) | &nbsp;&nbsp;&nbsp;&nbsp;(763843) | 111746 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;3668 | 5219 | &nbsp;&nbsp;&nbsp;&nbsp;(4494435) |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 6.84% | &nbsp;&nbsp;&nbsp;&nbsp;(4304007) | &nbsp;&nbsp;&nbsp;&nbsp;(549206) | 220428 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;890 | &nbsp;&nbsp;&nbsp;&nbsp;19247 | &nbsp;&nbsp;&nbsp;&nbsp;(4612648) |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures | 6.66% | (79924) | (10566) | 6362 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;4027 | 7281 | (72820) |
| &nbsp;&nbsp;&nbsp;Vehicles | 27.90% | &nbsp;&nbsp;&nbsp;&nbsp;(108205) | &nbsp;&nbsp;&nbsp;&nbsp;(104473) | &nbsp;&nbsp;&nbsp;&nbsp;18482 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;343 | (1624) | &nbsp;&nbsp;&nbsp;&nbsp;(195477) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(8357161) | &nbsp;&nbsp;&nbsp;&nbsp;(1440194) | 359290 | &nbsp;&nbsp;&nbsp;&nbsp;- | (3026) | &nbsp;&nbsp;&nbsp;&nbsp;28923 | &nbsp;&nbsp;&nbsp;&nbsp;(9412168) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;12215580 | 796929 | &nbsp;&nbsp;&nbsp;&nbsp;(174589) | 312001 | &nbsp;&nbsp;&nbsp;&nbsp;(42850) | (66209) | &nbsp;&nbsp;&nbsp;&nbsp;13040862 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 70

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

The amount of capitalized borrowing costs during the year ended December 31, 2022 was of R$83,303 in the Parent Company and R$93,261 in the Consolidated (R$56,337 in the Parent Company and R$57,001 in the Consolidated during the year ended December 31, 2021).

The weighted average rate used to determine the amount of borrowing costs subject to capitalization was 8.96% p.a. in the Parent Company and 9.55% p.a. in the Consolidated (7.71% p.a. in the Parent Company and 7.77% in the Consolidated for the year ended December 31, 2021).

The book value of the property, plant and equipment items that are pledged as collateral for transactions of different natures are set forth below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | <br>**Type of collateral** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Land | Financial/Tax | **90757** | &nbsp;&nbsp;&nbsp;&nbsp;150420 | **90757** | &nbsp;&nbsp;&nbsp;&nbsp;150420 |
| Buildings, facilities and improvements | Financial/Tax | **1296008** | 1207344 | **1298326** | 1209662 |
| Machinery and equipment | Financial/Labor/Tax/Civil | **1375162** | 1280116 | **1376186** | 1284033 |
| Furniture and fixtures | Financial/Tax | **15632** | 14960 | **15632** | 14960 |
| Vehicles | Financial/Tax | **160** | 276 | **160** | 276 |
|  |  | **2777719** | 2653116 | **2781061** | 2659351 |

---

14. INTANGIBLE ASSETS

The intangible assets rollforward is set forth below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | <br>**Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **Transfers** | **12.31.22** |
| **Cost** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 1783655 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | **1783655** |
| &nbsp;&nbsp;&nbsp;Trademarks |  | 1152885 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | **1152885** |
| &nbsp;&nbsp;&nbsp;Non-compete agreement |  | &nbsp;&nbsp;&nbsp;&nbsp;69950 | &nbsp;&nbsp;&nbsp;&nbsp;14185 | (69950) | &nbsp;&nbsp;&nbsp;&nbsp;- | **14185** |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship |  | 4740 | &nbsp;&nbsp;&nbsp;&nbsp;- | (4223) | &nbsp;&nbsp;&nbsp;&nbsp;- | **517** |
| &nbsp;&nbsp;&nbsp;Patents |  | 2485 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | **2485** |
| &nbsp;&nbsp;&nbsp;Software |  | 726021 | &nbsp;&nbsp;&nbsp;&nbsp;- | (88262) | 210116 | **847875** |
| &nbsp;&nbsp;&nbsp;Intangible in progress |  | &nbsp;&nbsp;&nbsp;&nbsp;71072 | 198356 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(200309) | **69119** |
|  |  | **3810808** | **212541** | **(162435)** | **9807** | **3870721** |
| **Amortization** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-compete agreement | 55.14% | (68587) | (2742) | &nbsp;&nbsp;&nbsp;&nbsp;69950 | &nbsp;&nbsp;&nbsp;&nbsp;- | **(1379)** |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship | 19.48% | (4425) | &nbsp;&nbsp;&nbsp;&nbsp;(145) | 4223 | &nbsp;&nbsp;&nbsp;&nbsp;- | **(347)** |
| &nbsp;&nbsp;&nbsp;Patents | 10.00% | (2301) | (23) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | **(2324)** |
| &nbsp;&nbsp;&nbsp;Software | 59.88% | &nbsp;&nbsp;&nbsp;&nbsp;(525159) | &nbsp;&nbsp;&nbsp;&nbsp;(164306) | &nbsp;&nbsp;&nbsp;&nbsp;75179 | &nbsp;&nbsp;&nbsp;&nbsp;- | **(614286)** |
|  |  | **(600472)** | **(167216)** | **149352** | **-** | **(618336)** |
|  |  | **3210336** | **45325** | **(13083)** | **9807** | **3252385** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 71

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Parent company | Parent company | Parent company | Parent company | Parent company |
| | <br>Average rate (1) | 12.31.20 | Additions | Disposals | Transfers | 12.31.21 |
| Cost |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 1783655 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 1783655 |
| &nbsp;&nbsp;&nbsp;Trademarks |  | 1152885 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 1152885 |
| &nbsp;&nbsp;&nbsp;Non-compete agreement |  | &nbsp;&nbsp;&nbsp;&nbsp;71764 | 1369 | (3183) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;69950 |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship |  | 5328 | 197 | &nbsp;&nbsp;&nbsp;&nbsp;(785) | &nbsp;&nbsp;&nbsp;&nbsp;- | 4740 |
| &nbsp;&nbsp;&nbsp;Patents |  | 6205 | &nbsp;&nbsp;&nbsp;&nbsp;- | (3720) | &nbsp;&nbsp;&nbsp;&nbsp;- | 2485 |
| &nbsp;&nbsp;&nbsp;Software |  | 613041 | 5214 | (64038) | 171804 | 726021 |
| &nbsp;&nbsp;&nbsp;Intangible in progress |  | &nbsp;&nbsp;&nbsp;&nbsp;45918 | 168191 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(143037) | &nbsp;&nbsp;&nbsp;&nbsp;71072 |
|  |  | 3678796 | 174971 | (71726) | &nbsp;&nbsp;&nbsp;&nbsp;28767 | 3810808 |
| Amortization |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-compete agreement | 55.14% | (69089) | (2680) | 3182 | &nbsp;&nbsp;&nbsp;&nbsp;- | (68587) |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship | 19.48% | (4695) | &nbsp;&nbsp;&nbsp;&nbsp;(505) | 775 | &nbsp;&nbsp;&nbsp;&nbsp;- | (4425) |
| &nbsp;&nbsp;&nbsp;Patents | 10.00% | (5997) | (24) | 3720 | &nbsp;&nbsp;&nbsp;&nbsp;- | (2301) |
| &nbsp;&nbsp;&nbsp;Software | 59.88% | &nbsp;&nbsp;&nbsp;&nbsp;(412539) | &nbsp;&nbsp;&nbsp;&nbsp;(176542) | &nbsp;&nbsp;&nbsp;&nbsp;63917 | 5 | &nbsp;&nbsp;&nbsp;&nbsp;(525159) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(492320) | &nbsp;&nbsp;&nbsp;&nbsp;(179751) | &nbsp;&nbsp;&nbsp;&nbsp;71594 | 5 | &nbsp;&nbsp;&nbsp;&nbsp;(600472) |
|  |  | 3186476 | (4780) | &nbsp;&nbsp;&nbsp;&nbsp;(132) | &nbsp;&nbsp;&nbsp;&nbsp;28772 | 3210336 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | <br>**Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **Business combination (2)** | **Transfers** | **Monetary correction by Hyperinflation** | **Exchange rate variation** | **12.31.22** |
| **Cost** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 3425183 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | (4026) |  | &nbsp;&nbsp;&nbsp;&nbsp;171880 | (118934) | **3474103** |
| &nbsp;&nbsp;&nbsp;Trademarks |  | 1733335 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;203246 | (55382) | **1881199** |
| &nbsp;&nbsp;&nbsp;Non-compete agreement |  | 110208 | &nbsp;&nbsp;&nbsp;&nbsp;19609 | (69950) |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(2441) | **57426** |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship |  | 4740 | &nbsp;&nbsp;&nbsp;&nbsp;- | (4223) |  | 11 |  | (11) | **517** |
| &nbsp;&nbsp;&nbsp;Patents |  | 3518 | &nbsp;&nbsp;&nbsp;&nbsp;- | (1) |  |  | 1978 | &nbsp;&nbsp;&nbsp;&nbsp;(617) | **4878** |
| &nbsp;&nbsp;&nbsp;Customer relationship |  | 1119534 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | &nbsp;&nbsp;&nbsp;&nbsp;381289 | (160572) | **1340251** |
| &nbsp;&nbsp;&nbsp;Software |  | 770399 | 118 | (92163) |  | 240679 | 19111 | &nbsp;&nbsp;&nbsp;&nbsp;(8054) | **930090** |
| &nbsp;&nbsp;&nbsp;Intangible in progress |  | &nbsp;&nbsp;&nbsp;&nbsp;98716 | 209007 | &nbsp;&nbsp;&nbsp;&nbsp;- | - | (224769) | 525 | &nbsp;&nbsp;&nbsp;&nbsp;(6216) | **77263** |
|  |  | **7265633** | **228734** | **(166337)** | **(4026)** | **15921** | **778029** | **(352227)** | **7765727** |
| **Amortization** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-compete agreement | 62.71% | &nbsp;&nbsp;&nbsp;&nbsp;(106749) | (5023) | &nbsp;&nbsp;&nbsp;&nbsp;69950 |  |  |  | 2486 | **(39336)** |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship | 19.48% | (4425) | &nbsp;&nbsp;&nbsp;&nbsp;(145) | 4223 |  |  |  |  | **(347)** |
| &nbsp;&nbsp;&nbsp;Patents | 8.08% | (2928) | &nbsp;&nbsp;&nbsp;&nbsp;(475) | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | (715) | 294 | **(3824)** |
| &nbsp;&nbsp;&nbsp;Customer relationship | 6.92% | &nbsp;&nbsp;&nbsp;&nbsp;(437774) | &nbsp;&nbsp;&nbsp;&nbsp;(102727) | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  | (147827) | &nbsp;&nbsp;&nbsp;&nbsp;66222 | **(622106)** |
| &nbsp;&nbsp;&nbsp;Software | 52.04% | &nbsp;&nbsp;&nbsp;&nbsp;(563943) | &nbsp;&nbsp;&nbsp;&nbsp;(175768) | &nbsp;&nbsp;&nbsp;&nbsp;79091 |  | (5972) | (4925) | 6013 | **(665504)** |
|  |  | **(1115819)** | **(284138)** | **153264** | **-** | **(5972)** | **(153467)** | **75015** | **(1331117)** |
|  |  | **6149814** | **(55404)** | **(13073)** | **(4026)** | **9949** | **624562** | **(277212)** | **6434610** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The reduction on goodwill reflects
the price adjustment on the business combination with Mogiana according to contractual terms of the shares purchase agreement, which has
not impacted other assets and liabilities fair values on the transaction which was conclude in December 2021.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 72

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | <br>Average rate (1) | 12.31.20 | Additions | Disposals | Business combination | Transfers | Exchange rate variation | 12.31.21 |
| Cost |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 2935577 | &nbsp;&nbsp;&nbsp;&nbsp;- | (6145) | &nbsp;&nbsp;&nbsp;&nbsp;468604 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;27147 | 3425183 |
| &nbsp;&nbsp;&nbsp;Trademarks |  | 1327738 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;474874 | &nbsp;&nbsp;&nbsp;&nbsp;- | (69277) | 1733335 |
| &nbsp;&nbsp;&nbsp;Non-compete agreement |  | 107162 | 1369 | (3182) | &nbsp;&nbsp;&nbsp;&nbsp;2246 | &nbsp;&nbsp;&nbsp;&nbsp;- | 2613 | 110208 |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship |  | 5328 | 197 | &nbsp;&nbsp;&nbsp;&nbsp;(785) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 4740 |
| &nbsp;&nbsp;&nbsp;Patents |  | 6205 | &nbsp;&nbsp;&nbsp;&nbsp;- | (3723) |  | 1038 | (2) | 3518 |
| &nbsp;&nbsp;&nbsp;Customer relationship |  | 1067713 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;124569 | &nbsp;&nbsp;&nbsp;&nbsp;- | (72748) | 1119534 |
| &nbsp;&nbsp;&nbsp;Software |  | 657255 | 5220 | (64045) | &nbsp;&nbsp;&nbsp;&nbsp;1828 | 172107 | &nbsp;&nbsp;&nbsp;&nbsp;(1966) | 770399 |
| &nbsp;&nbsp;&nbsp;Intangible in progress |  | &nbsp;&nbsp;&nbsp;&nbsp;46054 | 178059 | &nbsp;&nbsp;&nbsp;&nbsp;- | - | &nbsp;&nbsp;&nbsp;&nbsp;(125275) | &nbsp;&nbsp;&nbsp;&nbsp;(122) | &nbsp;&nbsp;&nbsp;&nbsp;98716 |
|  |  | 6153032 | 184845 | (77880) | &nbsp;&nbsp;&nbsp;&nbsp;1072121 | &nbsp;&nbsp;&nbsp;&nbsp;47870 | &nbsp;&nbsp;&nbsp;&nbsp;(114355) | 7265633 |
| Amortization |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-compete agreement | 62.71% | (97408) | (10086) | 3182 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(2437) | &nbsp;&nbsp;&nbsp;&nbsp;(106749) |
| &nbsp;&nbsp;&nbsp;Outgrowers relationship | 19.48% | (4695) | &nbsp;&nbsp;&nbsp;&nbsp;(505) | 775 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | (4425) |
| &nbsp;&nbsp;&nbsp;Patents | 8.08% | (5999) | (42) | 3723 |  | &nbsp;&nbsp;&nbsp;&nbsp;(614) | 4 | (2928) |
| &nbsp;&nbsp;&nbsp;Customer relationship | 6.92% | &nbsp;&nbsp;&nbsp;&nbsp;(375131) | (84010) | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;21367 | &nbsp;&nbsp;&nbsp;&nbsp;(437774) |
| &nbsp;&nbsp;&nbsp;Software | 52.04% | &nbsp;&nbsp;&nbsp;&nbsp;(449697) | &nbsp;&nbsp;&nbsp;&nbsp;(180026) | &nbsp;&nbsp;&nbsp;&nbsp;63920 |  | 3639 | &nbsp;&nbsp;&nbsp;&nbsp;(1779) | &nbsp;&nbsp;&nbsp;&nbsp;(563943) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(932930) | &nbsp;&nbsp;&nbsp;&nbsp;(274669) | &nbsp;&nbsp;&nbsp;&nbsp;71600 |  | 3025 | &nbsp;&nbsp;&nbsp;&nbsp;17155 | &nbsp;&nbsp;&nbsp;&nbsp;(1115819) |
|  |  | 5220102 | (89824) | (6280) | &nbsp;&nbsp;&nbsp;&nbsp;1072121 | &nbsp;&nbsp;&nbsp;&nbsp;50895 | (97200) | 6149814 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

14.1. Impairment test

The impairment test of assets is carried out annually based on the discounted cash flow method, which is prepared in order to determine the value in use of the Company's cash-generating units ("CGU"). In 2022, the Company used its budget, strategic and financial planning with projections until 2027 and average perpetuity of the cash generating units of 3.5% p.a., based on the history of recent years, as well as in the economic and financial projections of each market in which the Company operates, in addition to official information from independent and governmental institutions.

The discount rate used by Management to prepare discounted cash flows varied from 9.83% p.a. to 13.24% p.a. according to the CGU. The assumptions presented in the table below were also adopted:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** |
| Inflation Brazil | 5.16% | 3.59% | 3.93% | 3.68% | 3.41% |
| Inflation - United States | 1.90% | 2.29% | 2.22% | 2.20% | 2.21% |
| Exchange rate - BRL / USD | 5.12 | 5.10 | 5.18 | 5.20 | 5.20 |

---

The rates presented above don't consider the effects of income taxes.

Based on Management's analysis, no impairment adjustments were identified.

In addition to the analysis mentioned above, Management prepared a sensitivity analysis, in which increases and decreases 2 p.p. the operating margin<sup>1</sup> (operating income over net sales) and the nominal discount rate and did not identify any scenarios in which an impairment was necessary.

<sup>1</sup> The main assumptions contained in the margin include the projected income and commodity cost value.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 73

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

15. LOANS AND BORROWINGS

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | **Charges (p.a.)** | **Average rate (1)** | **WAMT (2)** | 12.31.21 | **Borrowing** | **Amortization** | **Interest paid** | **Interest accrued (3)** | **Exchange rate variation** | **12.31.22** |
| **Local currency** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed | 10.75%<br> (5.14% on 12.31.21) | 0.6 | 383342 | 386844 | (376808) | (18473) | &nbsp;&nbsp;&nbsp;&nbsp;26756 |  | **401661** |
| &nbsp;&nbsp;&nbsp;Certificate of agribusiness receivables (4) | IPCA | 11.80%<br> (16.57% on 12.31.21) | 1 | 967948 | &nbsp;&nbsp;&nbsp;&nbsp;(242) |  | (86620) | 118560 |  | **999646** |
| &nbsp;&nbsp;&nbsp;Export credit facility (5) | Fixed / CDI | 9.05% (10.99% on 12.31.21) | 4.7 | 3500875 | 637000 | (400000) | (272642) | 290236 | (141914) | **3613555** |
| &nbsp;&nbsp;&nbsp;Debentures | CDI / IPCA | 12.09%<br> (15.54% on 12.31.21) | 8.5 | 4210015 | 1649905 | (70000) | (258593) | 408819 |  | **5940146** |
| &nbsp;&nbsp;&nbsp;Fiscal incentives | &nbsp;&nbsp;&nbsp;&nbsp;Fixed | 2.40%<br> (2.40% on 12.31.21) |  | 3601 | 100326 | (98667) | &nbsp;&nbsp;&nbsp;&nbsp;(827) | 853 |  | **5286** |
|  |  |  |  | 9065781 | **2773833** | **(945475)** | **(637155)** | **845224** | **(141914)** | **10960294** |
| **Foreign currency** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | &nbsp;&nbsp;&nbsp;&nbsp;Fixed / FX USD and EUR | 5.06%<br> (4.92% on 12.31.21) | &nbsp;&nbsp;&nbsp;&nbsp;13 | 12764287 |  | (2416162) | (676937) | 605871 | (983382) | **9293677** |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / LIBOR /FX USD | 7.10%<br> (3.06% on 12.31.21) | 4.7 | 281112 |  | (142015) | &nbsp;&nbsp;&nbsp;&nbsp;(6525) | 7209 | &nbsp;&nbsp;&nbsp;&nbsp;(6894) | **132887** |
|  |  |  |  | 13045399 | **-** | **(2558177)** | **(683462)** | **613080** | **(990276)** | **9426564** |
|  |  |  |  | 22111180 | **2773833** | **(3503652)** | **(1320617)** | **1458304** | **(1132190)** | **20386858** |
| Current |  |  |  | 2790926 |  |  |  |  |  | **3379835** |
| Non-current |  |  |  | 19320254 |  |  |  |  |  | **17007023** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Weighted average maturity in years.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes interest amounts, monetary
restatement of the principal and coupon.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The Certificates of Agribusiness
Receivables ("CRA") issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.

&nbsp;&nbsp;&nbsp;&nbsp;(5) On December 31, 2022, includes
the amount of R$2,019,866 (R$2,160,061 on December 31, 2021) referring to an Export Credit Facility issued in Reais simultaneously and
in connection with a foreign exchange rate swap, resulting essentially in a net cash flow in U.S. Dollars. As the transactions
are inseparable, both are recorded together under Loans and Borrowings by their amortized cost.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 74

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company |
| | Charges (p.a.) | Average rate (1) | WAMT (2) | 12.31.20 | Borrowing | Amortization | Interest paid | Interest accrued | Exchange rate variation | 12.31.21 |
| Local currency |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed | 5.14%<br> (3.25% on 12.31.20) | 0.6 | 368681 | 400000 | (387154) | (11909) | 13724 |  | 383342 |
| &nbsp;&nbsp;&nbsp;Certificate of agribusiness receivables | IPCA | 16.57%<br> (10.21% on 12.31.20) | 2.0 | 821093 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;95 | 146760 |  | 967948 |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / CDI / FX USD | 10.99% (3.69% on 12.31.20) | 4.2 | 2408697 | 937250 |  | (117679) | 121936 | 150671 | 3500875 |
| &nbsp;&nbsp;&nbsp;Debentures | CDI / IPCA | 15.54%<br> (8.28% on 12.31.20) | 7.3 | 3022005 | 965549 |  | (188668) | 411129 |  | 4210015 |
| &nbsp;&nbsp;&nbsp;Fiscal incentives | &nbsp;&nbsp;&nbsp;&nbsp;Fixed | 2.40%<br> (2.40% on 12.31.20) |  | 44816 | 82064 | (123236) | &nbsp;&nbsp;&nbsp;&nbsp;(797) | 754 |  | 3601 |
|  |  |  |  | 6665292 | 2384863 | (510390) | (318958) | 694303 | 150671 | 9065781 |
| Foreign currency |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | &nbsp;&nbsp;&nbsp;&nbsp;Fixed / FX USD and EUR | 4.92%<br> (4.91% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;13.0 | 12252326 |  | (314806) | (729170) | 763826 | 792111 | 12764287 |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / LIBOR /FX USD | 3.06%<br> (3.13% on 12.31.20) | 4.2 | 392636 |  | (135668) | (10874) | 9818 | 25200 | 281112 |
| &nbsp;&nbsp;&nbsp;<br> Advances for foreign exchange rate contracts | Fixed / FX USD |  |  |  | 249000 | (249000) | &nbsp;&nbsp;&nbsp;&nbsp;(1242) | 1242 |  |  |
|  |  |  |  | 12644962 | 249000 | (699474) | (741286) | 774886 | 817311 | 13045399 |
|  |  |  |  | 19310254 | 2633863 | (1209864) | (1060244) | 1469189 | 967982 | 22111180 |
| Current |  |  |  | 811919 |  |  |  |  |  | 2790926 |
| Non-current |  |  |  | 18498335 |  |  |  |  |  | 19320254 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Weighted average maturity in years.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 75

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | **Charges (p.a.)** | **Average rate (1)** | **WAMT (2)** | 12.31.21 | **Borrowing** | **Amortization** | **Interest paid** | **Interest accrued (3)** | **Exchange rate variation** | **12.31.22** |
| **Local currency** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed / CDI | 10.72%<br> (5.24% on 12.31.21) | 0.6 | 406962 | 386844 | (392684) | (18473) | &nbsp;&nbsp;&nbsp;&nbsp;26902 | &nbsp;&nbsp;&nbsp;&nbsp;(365) | **409186** |
| &nbsp;&nbsp;&nbsp;Certificate of agribusiness receivables (4) | IPCA | 11.80%<br> (16.57% on 12.31.21) | 1 | 967948 | &nbsp;&nbsp;&nbsp;&nbsp;(242) |  | (86620) | 118560 |  | **999646** |
| &nbsp;&nbsp;&nbsp;Development bank credit lines | TJLP / TLP/ IPCA / FINAME | (3.12% on 12.31.21) |  | 7679 |  | &nbsp;&nbsp;&nbsp;&nbsp;(6328) | &nbsp;&nbsp;&nbsp;&nbsp;(1472) | 121 |  | **-** |
| &nbsp;&nbsp;&nbsp;Debentures | CDI / IPCA | 12.09%<br> (15.54% on 12.31.21) | 8.5 | 4210015 | 1649905 | (70000) | (258593) | 408819 |  | **5940146** |
| &nbsp;&nbsp;&nbsp;Export credit facility (5) | Fixed / CDI | 9.05%<br> (10.87% on 12.31.21) | 5.3 | 3516273 | 637000 | (415706) | (272642) | 290544 | (141914) | **3613555** |
| &nbsp;&nbsp;&nbsp;Fiscal incentives | Fixed | 2.40%<br> (2.40% on 12.31.21) |  | 3601 | 100326 | (98667) | (827) | 853 |  | **5286** |
|  |  |  |  | 9112478 | **2773833** | **(983385)** | **(638627)** | **845799** | **(142279)** | **10967819** |
| **Foreign currency** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | Fixed / FX USD and EUR | 4.91%<br> (4.82% on 12.31.21) | &nbsp;&nbsp;&nbsp;&nbsp;11 | 15544012 |  | (2416162) | (793711) | 724476 | (1156325) | **11902290** |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / LIBOR / FX USD | 7.10% (3.43% on 12.31.21) | 0.2 | 311385 |  | (170051) | &nbsp;&nbsp;&nbsp;&nbsp;(7119) | 7609 | &nbsp;&nbsp;&nbsp;&nbsp;(8937) | **132887** |
| &nbsp;&nbsp;&nbsp;Advances for foreign exchange rate contracts | Fixed / FX USD |  |  | 3103 |  | &nbsp;&nbsp;&nbsp;&nbsp;(2766) |  | (53) | &nbsp;&nbsp;&nbsp;&nbsp;(284) | **-** |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed / FX TRY and USD | 16.83% (13.35% on 12.31.21) | 0.7 | 485052 | 618780 | (412058) | (78844) | &nbsp;&nbsp;&nbsp;&nbsp;74581 | (173507) | **514004** |
|  |  |  |  | 16343552 | **618780** | **(3001037)** | **(879674)** | **806613** | **(1339053)** | **12549181** |
|  |  |  |  | 25456030 | **3392613** | **(3984422)** | **(1518301)** | **1652412** | **(1481332)** | **23517000** |
| Current |  |  |  | 3203068 |  |  |  |  |  | **3879874** |
| Non-current |  |  |  | 22252962 |  |  |  |  |  | **19637126** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Weighted average maturity in years.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes interest amounts, monetary
restatement of the principal and coupon.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The Certificate of Agribusiness
Receivable ("CRA") issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.

&nbsp;&nbsp;&nbsp;&nbsp;(5) On December 31, 2022,
 includes the amount of R$2,019,866 (R$2,160,061 on December 31, 2021) referring to an Export Credit Facility issued in Reais
 simultaneously and in connection with a foreign exchange rate swap, resulting essentially in a net cash flow
 in U.S. Dollars. As the transactions are inseparable, both are recorded together under Loans and Borrowings by their
 amortized cost.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 76

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | Charges (p.a.) | Average rate (1) | WAMT (2) | 12.31.20 | Borrowing | Business combination | Amortization | Interest paid | Interest accrued | Exchange rate variation | 12.31.21 |
| Local currency |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed / CDI | 5.24%<br> (3.25% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;0.7 | 368681 | 400000 | &nbsp;&nbsp;&nbsp;&nbsp;25950 | (389734) | (11910) | 13975 |  | 406962 |
| &nbsp;&nbsp;&nbsp;Certificate of agribusiness receivables | IPCA | 16.57%<br> (10.21% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;2.0 | 821093 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;95 | 146760 |  | 967948 |
| &nbsp;&nbsp;&nbsp;Development bank credit lines | TJLP / TLP/ IPCA / FINAME | 3.12% | &nbsp;&nbsp;&nbsp;&nbsp;3.7 |  |  | 9006 | &nbsp;&nbsp;&nbsp;&nbsp;(1351) | (87) | 111 |  | 7679 |
| &nbsp;&nbsp;&nbsp;Debentures | CDI / IPCA | 15.54%<br> (8.28% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;7.3 | 3022005 | 965549 |  |  | (188668) | 411129 |  | 4210015 |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / CDI / FX USD | 10.87% (3.69% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;4.2 | 2408697 | 937250 | &nbsp;&nbsp;&nbsp;&nbsp;20456 | &nbsp;&nbsp;&nbsp;&nbsp;(5632) | (117679) | 122510 | 150671 | 3516273 |
| &nbsp;&nbsp;&nbsp;Fiscal incentives | Fixed | 2.40%<br> (2.40% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;- | 44816 | 82064 |  | (123236) | &nbsp;&nbsp;&nbsp;&nbsp;(797) | 754 |  | 3601 |
|  |  |  |  | 6665292 | 2384863 | &nbsp;&nbsp;&nbsp;&nbsp;55412 | (519953) | (319046) | 695239 | 150671 | 9112478 |
| Foreign currency |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bonds | Fixed / FX USD and EUR | 4.82%<br> (4.81% on 12.31.20) | 11.6 | 14829993 |  |  | (314806) | (790836) | 888804 | 930857 | 15544012 |
| &nbsp;&nbsp;&nbsp;Export credit facility | Fixed / LIBOR / FX USD | 3.43% (3.13% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;1.3 | 392636 |  | &nbsp;&nbsp;&nbsp;&nbsp;30476 | (138870) | (10867) | 10466 | 27544 | 311385 |
| &nbsp;&nbsp;&nbsp;Advances for foreign exchange rate contracts | Fixed / FX USD |  | &nbsp;&nbsp;&nbsp;&nbsp;- |  | 249000 | 2672 | (249000) | &nbsp;&nbsp;&nbsp;&nbsp;(1182) | 1363 | 250 | 3103 |
| &nbsp;&nbsp;&nbsp;Working capital | Fixed / FX TRY and USD | 13.35% (10.98% on 12.31.20) | &nbsp;&nbsp;&nbsp;&nbsp;1.5 | 516505 | 356919 | &nbsp;&nbsp;&nbsp;&nbsp;29555 | (172718) | (71436) | 85339 | (259112) | 485052 |
|  |  |  |  | 15739134 | 605919 | &nbsp;&nbsp;&nbsp;&nbsp;62703 | (875394) | (874321) | 985972 | 699539 | 16343552 |
|  |  |  |  | 22404426 | 2990782 | 118115 | (1395347) | (1193367) | 1681211 | 850210 | 25456030 |
| Current |  |  |  | 1059984 |  |  |  |  |  |  | 3203068 |
| Non-current |  |  |  | 21344442 |  |  |  |  |  |  | 22252962 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Weighted average maturity in years.

On December 31, 2022 and on December 31, 2021 the Company did not have any financial covenant clauses related to its loans and borrowings agreements.

The maturity schedule of the loans and borrowings is presented on note 24.3.

In the ordinary course of business, the Company from time to time may consider repurchasing any of its Senior Unsecured Notes (Bonds), subject market conditions, as alternative for improving the cost of capital and for better equalization of the foreign exchange balances and of the indebtedness profile. Such repurchases may be carried out in different ways, including open market transactions. Subject to compliance with applicable laws, any such transaction may be carried out at any time, and the Company has no obligation to acquire any particular amount of Bonds.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 77

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

15.1. Revolving credit facility

With the purpose of maintaining a prudential and sustainable short-term liquidity position, in line with the adoption of measures to extend its average debt maturity and reduce the cost of debt, on December 12, 2019 the Company retained from Banco do Brasil a revolving credit facility up to the limit of R$1,500,000 for a period of three years, which renewal was approved by the Board of Directors on October 21, 2022, under the same conditions, for an additional period of 2 years. On October 28, 2020 the Company retained an additional revolving credit facility before Banco do Brasil, up to the limit of R$1,500,000, for the next three years. The referenced credit facilities can be withdrawn totally or partially, at the Company's will, whenever necessary. As of December 31, 2022, the credit facilities were available, but unused.

15.2. Guarantees

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Total loans and borrowings** | **20386858** | 22111180 | **23517000** | 25456030 |
| **Mortgage guarantees** | **5286** | 3601 | **5286** | &nbsp;&nbsp;&nbsp;&nbsp;20343 |
| &nbsp;&nbsp;&nbsp;Related to FINAME | **-** |  | **-** | &nbsp;&nbsp;&nbsp;&nbsp;16742 |
| &nbsp;&nbsp;&nbsp;Related to tax incentives and other | **5286** | 3601 | **5286** | 3601 |

---

On December 31, 2022, the amount of bank guarantees contracted by the Company was of R$447,736 (R$478,468 as of December 31, 2021) which were offered mainly in litigations involving the Company's use of tax credits. These guarantees have an average cost of 1.92% p.a. (1.93% p.a. as of December 31, 2021).

15.3. Debentures offering

On July 13, 2022, the securitization company subscribed, under the private placement, 1,700,000 (one million and seven hundred thousand) debentures with a unit face value of R$1 (one thousand Reais) and consists of two series, in a total amount of R$1,700,000 (one billion and seven hundred million Reais). The first series is composed of 710,000 (seven hundred and ten thousand) debentures, with maturity on July 13, 2027 and indexed to DI. The second series is composed of 990,000 (nine hundred and ninety thousand) debentures, with maturity on July 13, 2032 and indexed to IPCA.

15.4. Senior Notes repurchase

During the year ended on December 31, 2022, the Company repurchased the following issues of senior notes: 4.875% Senior Notes due in 2030 and 5.75% Senior Notes due in 2050. The result of the repurchases is set forth below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Instrument** | **Currency** | **Maturity** | **Notional repurchased** | **Notional repurchased** | **Outstanding notional (1)** | **Outstanding notional (1)** |
| **Instrument** | **Currency** | **Maturity** | (loan currency) | (Reais) (2) | (loan currency) | (Reais) (3) |
| BRF S.A. - BRFSBZ 4 7/8 | USD | 2030 | &nbsp;&nbsp;&nbsp;&nbsp;102291 | **537837** | &nbsp;&nbsp;&nbsp;&nbsp;588307 | **3069609** |
| BRF S.A. - BRFSBZ 5 3/4 | USD | 2050 | &nbsp;&nbsp;&nbsp;&nbsp;128810 | **676862** | &nbsp;&nbsp;&nbsp;&nbsp;671190 | **3502068** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Outstanding notional after the
tender offer.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represented by the amount in the
original loan currency, translated by the foreign exchange rate at the settlement date of the repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represented by the amount in the
original loan currency, translated by the foreign exchange rate at the settlement date 12.31.22.

The Company paid the amount equivalent to R$950,924 for the repurchase of these liabilities, which includes notional as depicted above, increased by interest, premium and taxes in the amount of R$12,142 and net of financial income in the amount of R$275,917 referring to the discount on the repurchase. Furthermore, the repurchase generated financial expenses in the amount of R$9,932 related to financial taxes and R$23,941 with the write-off of the costs of issuance.

16. TRADE ACCOUNTS PAYABLE

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 78

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|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Trade accounts payable** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Domestic market** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third parties | **10141950** | 9652212 | **10327274** | 9776720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties | **44209** | &nbsp;&nbsp;&nbsp;&nbsp;61418 | **26970** | &nbsp;&nbsp;&nbsp;&nbsp;36058 |
| &nbsp;&nbsp;&nbsp;**Foreign market** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third parties | **1211448** | 850441 | **2570360** | 2019800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties | **1519** | &nbsp;&nbsp;&nbsp;&nbsp;- | **42** | 24 |
|  | **11399126** | &nbsp;&nbsp;&nbsp;&nbsp;10564071 | **12924646** | &nbsp;&nbsp;&nbsp;&nbsp;11832602 |
| (-) Adjustment to present value | **(179198)** | &nbsp;&nbsp;&nbsp;&nbsp;(114599) | **(181559)** | &nbsp;&nbsp;&nbsp;&nbsp;(117978) |
|  | **11219928** | &nbsp;&nbsp;&nbsp;&nbsp;10449472 | **12743087** | &nbsp;&nbsp;&nbsp;&nbsp;11714624 |
| Current | **11212469** | &nbsp;&nbsp;&nbsp;&nbsp;10440754 | **12735628** | &nbsp;&nbsp;&nbsp;&nbsp;11701996 |
| Non-current | **7459** | 8718 | **7459** | &nbsp;&nbsp;&nbsp;&nbsp;12628 |

---

17. SUPPLY CHAIN FINANCE

---

| | | |
|:---|:---|:---|
| **Parent company and Consolidated** | **Parent company and Consolidated** | **Parent company and Consolidated** |
|  | **12.31.22** | 12.31.21 |
| **Supply chain finance** |  |  |
| &nbsp;&nbsp;&nbsp;Domestic market | **1268269** | 1971441 |
| &nbsp;&nbsp;&nbsp;Foreign market | **153437** | 293732 |
|  | **1421706** | 2265173 |
| (-) Adjustment to present value | **(28569)** | (27198) |
|  | **1393137** | 2237975 |

---

The Company has agreements with several financial institutions that allow the suppliers to anticipate their receivables and, therefore, transfer the right to receive invoices with financial institutions. The suppliers may choose whether to participate and if so, with which financial institution, with no participation by BRF.

These agreements can generate benefits in the commercial relations of BRF and its suppliers, such as preference and priority of supply in case of restricted supply, better price conditions and/or more flexible payment terms, among others, without identifiable changes in other commercial conditions. The operations presented in this line item are registered with suppliers in which one or more of the conditions mentioned were changed in the commercial negotiation made by BRF directly and exclusively with the supplier.

In addition to the balance highlighted in the table above, on December 31, 2022, R$4,166,746 in the Parent Company and R$4,373,134 in the Consolidated (R$3,754,104 in the Parent Company and R$3,905,827 in the Consolidated as of December 31, 2021) which are included in the balance presented in note 16, corresponds to supply chain finance transactions, however for this balance the commercial conditions negotiated with the suppliers in which there were no changes.

BRF performs the payment of invoices according to the same price and term conditions negotiated with its suppliers, regardless of whether or not it was discounted by its suppliers without incurring any charge to the Company. In addition, the Company does not change commercial conditions after negotiation and invoicing of goods or services.

The Company measures and discriminates the adjustment to present value for all its commercial operations carried out in installments, specifying financial and operational items (note 3.20.3).

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 79

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

18. LEASES

The Company is lessee in several lease agreements for forest lands, offices, distribution centers, outgrowers, vehicles, among others. Some contracts have a renewal option for an additional period at the end of the agreement, established by contractual amendments. Automatic renewals or renewals for undetermined periods are not allowed.

The contract clauses mentioned, with respect to renewal, readjustment and purchase option, are contracted according to market practices. In addition, there are no clauses of contingent payments or restrictions on dividends distribution, payments of interest on shareholders' equity or obtaining debt.

18.1. Right-of-use
assets

The right-of-use assets as set forth below are part of the balances of property, plant and equipment and intangible assets (notes 13 and 14).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | **Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **12.31.22** |
| **Cost** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land |  | &nbsp;&nbsp;&nbsp;&nbsp;47514 | 732 | (2158) | **46088** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings |  | 2912644 | 814038 | &nbsp;&nbsp;&nbsp;&nbsp;(105913) | **3620769** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment |  | 111979 | 4086 | (74172) | **41893** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  | 196249 | &nbsp;&nbsp;&nbsp;&nbsp;46559 | (3499) | **239309** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software |  | &nbsp;&nbsp;&nbsp;&nbsp;79732 | &nbsp;&nbsp;&nbsp;&nbsp;- | (67429) | **12303** |
|  |  | **3348118** | **865415** | **(253171)** | **3960362** |
| **Depreciation** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 16.23% | (19958) | (6743) | 2070 | **(24631)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings | 28.94% | &nbsp;&nbsp;&nbsp;&nbsp;(1183829) | &nbsp;&nbsp;&nbsp;&nbsp;(424159) | &nbsp;&nbsp;&nbsp;&nbsp;94510 | **(1513478)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 31.66% | (72335) | (24639) | &nbsp;&nbsp;&nbsp;&nbsp;74074 | **(22900)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles | 27.61% | &nbsp;&nbsp;&nbsp;&nbsp;(106405) | (66351) | 2399 | **(170357)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 71.98% | (61193) | (3998) | &nbsp;&nbsp;&nbsp;&nbsp;54377 | **(10814)** |
|  |  | **(1443720)** | **(525890)** | **227430** | **(1742180)** |
|  |  | **1904398** | **339525** | **(25741)** | **2218182** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Parent company | Parent company | Parent company | Parent company | Parent company |
| | Average rate (1) | 12.31.20 | Additions | Disposals | 12.31.21 |
| Cost |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land |  | &nbsp;&nbsp;&nbsp;&nbsp;45592 | 3429 | (1507) | &nbsp;&nbsp;&nbsp;&nbsp;47514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings |  | 2642544 | 353028 | (82928) | 2912644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment |  | 112195 | &nbsp;&nbsp;&nbsp;&nbsp;98353 | (98569) | 111979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  | 201924 | 2210 | (7885) | 196249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software |  | &nbsp;&nbsp;&nbsp;&nbsp;74582 | 5214 | (64) | &nbsp;&nbsp;&nbsp;&nbsp;79732 |
|  |  | 3076837 | 462234 | &nbsp;&nbsp;&nbsp;&nbsp;(190953) | 3348118 |
| Depreciation |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 15.66% | (12376) | (8170) | 588 | (19958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings | 26.48% | &nbsp;&nbsp;&nbsp;&nbsp;(848016) | &nbsp;&nbsp;&nbsp;&nbsp;(389368) | &nbsp;&nbsp;&nbsp;&nbsp;53555 | &nbsp;&nbsp;&nbsp;&nbsp;(1183829) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 67.61% | &nbsp;&nbsp;&nbsp;&nbsp;(107089) | (63605) | &nbsp;&nbsp;&nbsp;&nbsp;98359 | (72335) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles | 28.68% | (57575) | (55626) | 6796 | &nbsp;&nbsp;&nbsp;&nbsp;(106405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 42.19% | (33048) | (28209) | 64 | (61193) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(1058104) | &nbsp;&nbsp;&nbsp;&nbsp;(544978) | 159362 | &nbsp;&nbsp;&nbsp;&nbsp;(1443720) |
|  |  | 2018733 | (82744) | (31591) | 1904398 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 80

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| (in thousands of Brazilian Reais) |

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | **Average rate (1)** | **12.31.21** | **Additions** | **Disposals** | **Monetary correction by Hyperinflation** | **Exchange rate variation** | **12.31.22** |
| **Cost** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145394 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;732 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2489) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3534 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7431) | **139740** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3223625 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;927818 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(116707) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18933 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22526) | **4031143** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117412 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4086 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(74193) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(432) | **47688** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;369979 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;246075 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5477) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6279 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14740) | **602116** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79731 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(67428) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **12303** |
|  |  | **3936141** | **1178711** | **(266294)** | **29561** | **(45129)** | **4832990** |
| **Depreciation** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 8.95% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36439) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12334) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2401 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1090 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1276 | **(44006)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings | 5.16% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1383968) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(510875) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104540 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10225) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15751 | **(1784777)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 25.60% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(73385) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27726) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74111 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(475) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;192 | **(27283)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles | 23.19% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(189817) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(161992) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5496) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6015 | **(346907)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 76.58% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61193) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3998) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54377 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | **(10814)** |
|  |  | **(1744802)** | **(716925)** | **239812** | **(15106)** | **23234** | **(2213787)** |
|  |  | **2191339** | **461786** | **(26482)** | **14455** | **(21895)** | **2619203** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | Average rate (1) | 12.31.20 | Additions | Disposals | Transfers | Business combination | Exchange rate variation | 12.31.21 |
| Cost |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land |  | &nbsp;&nbsp;&nbsp;&nbsp;48661 | 3761 | (2503) | 90549 |  | 4926 | 145394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings |  | 2861916 | &nbsp;&nbsp;&nbsp;&nbsp;532728 | (88723) | &nbsp;&nbsp;&nbsp;&nbsp;(90549) | 6252 | 2001 | 3223625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment |  | 112593 | 98353 | (98918) | &nbsp;&nbsp;&nbsp;&nbsp;596 | 4527 | 261 | 117412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles |  | 344918 | 46707 | (29186) | (596) | 851 | 7285 | 369979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software |  | &nbsp;&nbsp;&nbsp;&nbsp;74582 | 5213 | (64) |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;79731 |
|  |  | 3442670 | &nbsp;&nbsp;&nbsp;&nbsp;686762 | (219394) |  | 11630 | &nbsp;&nbsp;&nbsp;&nbsp;14473 | 3936141 |
| Depreciation |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 9.03% | (13526) | (12030) | 1533 | &nbsp;&nbsp;&nbsp;&nbsp;(11954) |  | (462) | (36439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings | 21.29% | &nbsp;&nbsp;&nbsp;&nbsp;(914816) | (535838) | 59332 | 11954 |  | (4600) | &nbsp;&nbsp;&nbsp;&nbsp;(1383968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 57.13% | &nbsp;&nbsp;&nbsp;&nbsp;(107316) | (64228) | 98673 | (338) |  | (176) | (73385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles | 28.83% | &nbsp;&nbsp;&nbsp;&nbsp;(101495) | (102320) | 17699 | &nbsp;&nbsp;&nbsp;&nbsp;338 |  | (4039) | &nbsp;&nbsp;&nbsp;&nbsp;(189817) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | 42.22% | (33048) | (28209) | 64 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (61193) |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;(1170201) | (742625) | &nbsp;&nbsp;&nbsp;&nbsp;177301 |  |  | (9277) | &nbsp;&nbsp;&nbsp;&nbsp;(1744802) |
|  |  | 2272469 | (55863) | (42093) | - | 11630 | 5196 | 2191339 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average annual rate.

18.2. Lease liabilities

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
| | **WAM (1)** | 12.31.21 | **Additions** | **Payments** | **Interest paid** | **Interest accrued** | **Disposals** | **12.31.22** |
| &nbsp;&nbsp;&nbsp;Land | 6.9 | 32693 | &nbsp;&nbsp;&nbsp;&nbsp;732 | (5808) | &nbsp;&nbsp;&nbsp;&nbsp;(3626) | 3626 | &nbsp;&nbsp;&nbsp;&nbsp;(166) | **27451** |
| &nbsp;&nbsp;&nbsp;Buildings | 7.9 | &nbsp;&nbsp;&nbsp;&nbsp;1977283 | 822136 | (372727) | (94407) | &nbsp;&nbsp;&nbsp;&nbsp;183097 | (19395) | **2495987** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 3.9 | 40220 | &nbsp;&nbsp;&nbsp;&nbsp;4086 | (24138) | &nbsp;&nbsp;&nbsp;&nbsp;(2387) | 2387 | (10) | **20158** |
| &nbsp;&nbsp;&nbsp;Vehicles | 1.3 | 98460 | 46559 | (61894) | &nbsp;&nbsp;&nbsp;&nbsp;(6864) | 6864 | (1362) | **81763** |
| &nbsp;&nbsp;&nbsp;Software | 0.8 | 19667 |  | (4102) | &nbsp;&nbsp;&nbsp;&nbsp;(249) | 249 | (13961) | **1604** |
|  |  | **2168323** | **873513** | **(468669)** | **(107533)** | **196223** | **(34894)** | **2626963** |
| Current |  | **364470** |  |  |  |  |  | **521544** |
| Non-current |  | **1803853** |  |  |  |  |  | **2105419** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity in years.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 81

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company |
| | WAM (1) | 12.31.20 | Additions | Payments | Interest paid | Interest accrued | Disposals | 12.31.21 |
| &nbsp;&nbsp;&nbsp;Land | 6.8 | 35934 | &nbsp;&nbsp;&nbsp;&nbsp;3429 | (5562) | &nbsp;&nbsp;&nbsp;&nbsp;(4576) | 4576 | (1108) | 32693 |
| &nbsp;&nbsp;&nbsp;Buildings | 6.8 | &nbsp;&nbsp;&nbsp;&nbsp;2033405 | 353028 | (382725) | (96387) | &nbsp;&nbsp;&nbsp;&nbsp;162359 | (92397) | &nbsp;&nbsp;&nbsp;&nbsp;1977283 |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 1.5 | &nbsp;&nbsp;&nbsp;&nbsp;3591 | 98353 | (61723) | &nbsp;&nbsp;&nbsp;&nbsp;(3615) | 3615 | (1) | 40220 |
| &nbsp;&nbsp;&nbsp;Vehicles | 2.3 | &nbsp;&nbsp;&nbsp;&nbsp;152554 | &nbsp;&nbsp;&nbsp;&nbsp;2210 | (55118) | (10861) | 10861 | (1186) | 98460 |
| &nbsp;&nbsp;&nbsp;Software | 1.5 | 43210 | &nbsp;&nbsp;&nbsp;&nbsp;5214 | (28757) | &nbsp;&nbsp;&nbsp;&nbsp;(2306) | 2306 | &nbsp;&nbsp;&nbsp;&nbsp;- | 19667 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;2268694 | 462234 | (533885) | (117745) | &nbsp;&nbsp;&nbsp;&nbsp;183717 | (94692) | &nbsp;&nbsp;&nbsp;&nbsp;2168323 |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;302946 |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;364470 |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;1965748 |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;1803853 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity in years.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
| | **WAM (1)** | 12.31.21 | **Additions** | **Payments** | **Interest paid** | **Interest accrued** | **Disposals** | **Exchange rate variation** | **12.31.22** |
| &nbsp;&nbsp;&nbsp;Land | &nbsp;&nbsp;&nbsp;&nbsp;10.3 | &nbsp;&nbsp;&nbsp;&nbsp;126293 | &nbsp;&nbsp;&nbsp;&nbsp;732 | (7709) | &nbsp;&nbsp;&nbsp;&nbsp;(9653) | 9653 | (166) | (6674) | **112476** |
| &nbsp;&nbsp;&nbsp;Buildings | 1.8 | &nbsp;&nbsp;&nbsp;&nbsp;2095375 | &nbsp;&nbsp;&nbsp;&nbsp;935916 | (458434) | (102740) | &nbsp;&nbsp;&nbsp;&nbsp;191431 | (19395) | (8079) | **2634074** |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 2.0 | 45218 | &nbsp;&nbsp;&nbsp;&nbsp;4086 | &nbsp;&nbsp;&nbsp;&nbsp;(25609) | &nbsp;&nbsp;&nbsp;&nbsp;(2709) | 2709 | (10) | (1120) | **22565** |
| &nbsp;&nbsp;&nbsp;Vehicles | 1.9 | &nbsp;&nbsp;&nbsp;&nbsp;192694 | &nbsp;&nbsp;&nbsp;&nbsp;246075 | (153992) | (15830) | 15830 | (1362) | (9200) | **274215** |
| &nbsp;&nbsp;&nbsp;Software | 0.8 | 19666 |  | (4102) | &nbsp;&nbsp;&nbsp;&nbsp;(249) | 249 | (13960) | &nbsp;&nbsp;&nbsp;&nbsp;- | **1604** |
|  |  | **2479246** | **1186809** | **(649846)** | **(131181)** | **219872** | **(34893)** | **(25073)** | **3044934** |
| Current |  | **471956** |  |  |  |  |  |  | **676864** |
| Non-current |  | **2007290** |  |  |  |  |  |  | **2368070** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity in years.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| | WAM (1) | 12.31.20 | Additions | Payments | Interest paid | Interest accrued | Disposals | Transfers | Business combination | Exchange rate variation | 12.31.21 |
| &nbsp;&nbsp;&nbsp;Land | 4.6 | 37868 | &nbsp;&nbsp;&nbsp;&nbsp;3761 | (6890) | &nbsp;&nbsp;&nbsp;&nbsp;(9063) | 9063 | (1160) | &nbsp;&nbsp;&nbsp;&nbsp;82851 |  | 9863 | &nbsp;&nbsp;&nbsp;&nbsp;126293 |
| &nbsp;&nbsp;&nbsp;Buildings | 1.9 | &nbsp;&nbsp;&nbsp;&nbsp;2195407 | 532728 | (507479) | (120193) | &nbsp;&nbsp;&nbsp;&nbsp;186165 | (92461) | (82851) | &nbsp;&nbsp;&nbsp;&nbsp;8805 | (24746) | &nbsp;&nbsp;&nbsp;&nbsp;2095375 |
| &nbsp;&nbsp;&nbsp;Machinery and equipment | 0.9 | &nbsp;&nbsp;&nbsp;&nbsp;3773 | 98353 | &nbsp;&nbsp;&nbsp;&nbsp;(62357) | &nbsp;&nbsp;&nbsp;&nbsp;(3764) | 3764 | (35) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;4998 | 486 | 45218 |
| &nbsp;&nbsp;&nbsp;Vehicles | 1.8 | &nbsp;&nbsp;&nbsp;&nbsp;256423 | 46707 | &nbsp;&nbsp;&nbsp;&nbsp;(99944) | (17577) | 17577 | (1680) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;940 | (9752) | &nbsp;&nbsp;&nbsp;&nbsp;192694 |
| &nbsp;&nbsp;&nbsp;Software | 1.5 | 43210 | &nbsp;&nbsp;&nbsp;&nbsp;5213 | &nbsp;&nbsp;&nbsp;&nbsp;(28757) | &nbsp;&nbsp;&nbsp;&nbsp;(2306) | 2306 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 19666 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;2536681 | 686762 | (705427) | (152903) | &nbsp;&nbsp;&nbsp;&nbsp;218875 | (95336) | &nbsp;&nbsp;&nbsp;&nbsp;- | 14743 | (24149) | &nbsp;&nbsp;&nbsp;&nbsp;2479246 |
| Current |  | &nbsp;&nbsp;&nbsp;&nbsp;383162 |  |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;471956 |
| Non-current |  | &nbsp;&nbsp;&nbsp;&nbsp;2153519 |  |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;2007290 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Weighted average maturity in years.

18.3. Lease liabilities maturity
schedule

The maturity schedule of the minimum required future payments is presented below:

---

| | | |
|:---|:---|:---|
| | **Parent company**<br>**12.31.22** | **Consolidated**<br>**12.31.22** |
| **Current** | **521544** | **676864** |
| **Non-current** | **2105419** | **2368070** |
| &nbsp;&nbsp;&nbsp;2024 | 463198 | 559084 |
| &nbsp;&nbsp;&nbsp;2025 | 376551 | 438093 |
| &nbsp;&nbsp;&nbsp;2026 | 295766 | 321796 |
| &nbsp;&nbsp;&nbsp;2027 | 224480 | 231775 |
| &nbsp;&nbsp;&nbsp;2028 onwards | 745424 | 817322 |
|  | **2626963** | **3044934** |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 82

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

18.4. Incremental borrowing rate

The Company uses nominal incremental borrowing rates to measure its lease liabilities. The nominal and real interest rates are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **12.31.22** | **12.31.22** | **12.31.21** | **12.31.21** |
| **Contract Terms** | **Nominal rate % p.a.** | **Real rate % p.a.** | **Nominal rate % p.a.** | **Real rate % p.a.** |
| 1 year | 14.39% | 8.31% | 5.34% | 0.86% |
| 2 years | 14.36% | 7.09% | 5.24% | 1.02% |
| 3 years | 13.72% | 6.71% | 6.83% | 2.60% |
| 4 years | 12.40% | 6.68% | 8.49% | 4.41% |
| 5 years | 16.24% | 8.21% | 9.69% | 4.85% |
| 6 years | 13.66% | 7.20% | 10.61% | 5.15% |
| 7 years |  |  | 11.18% | 10.56% |
| 12 years |  |  | 9.85% | 5.55% |
| 15 years | 17.89% | 10.24% |  |  |
| 16 years |  |  | 12.44% | 6.70% |
| 17 years | 12.29% | 6.63% | 13.12% | 6.77% |
| 18 years | 14.74% | 8.05% | 13.01% | 6.70% |
| 19 years | 18.27% | 10.53% |  |  |
| 20 years | - | - | 12.95% | 7.07% |

---

The nominal rates presented above as of December 31, 2022 refer to the incremental borrowing rates used in contracts recognized during the year ended December 31, 2022 and the rates as of December 31, 2021 refer to the rates used in contracts recognized during the year ended December 31, 2021.

18.5. Amounts recognized in the
statement of income

The amounts directly recognized in the statement of income presented below relate to items not capitalized including: low-value assets, short-term leases and leases with variable payments.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Parent Company** | **Parent Company** | **Parent Company** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Variable payments not included in the lease liabilities | **62728** | &nbsp;&nbsp;&nbsp;&nbsp;63648 | **217498** | 282732 |
| Expenses related to short-term leases | **53984** | &nbsp;&nbsp;&nbsp;&nbsp;57793 | **124451** | 171733 |
| Expenses related to low-value assets | **13379** | 4585 | **13469** | 4681 |
|  | **130091** | 126026 | **355418** | 459146 |

---

18.6. Sale-and-leaseback transactions

During the year ended December 31, 2022, the conditions for ownership transfer of a feed factory in Francisco Beltrão, previously owned by the Company, were concluded. The transaction was classified as a sale-and-leaseback. The right-of use asset and lease liability was recognized and are presented in the additions of the Buildings class, with the following amounts: right-of-use asset of R$2,945 and lease liability of R$11,042. A gain was recognized under Other Operating Income in the amount of R$5,521.

19. SHARE-BASED PAYMENT

The Company grants to its eligible employees, restricted stocks, ruled by plans approved at the General Shareholder's Meeting, with the purpose of: (i) stimulating the expansion, success and achievement of the Company's social objectives; (ii) aligning the interests of the Company's shareholders with those of the eligible employees; and (iii) enabling the Company and its subsidiaries to attract and retain the employees. The limit of grants is 2.5% of the common, registered, book-entry shares with no par value, representative of the Company's total capital stock.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 83

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

Annually, or whenever it deems appropriate, the Board of Directors approves the grant of restricted stocks, electing the beneficiaries in favor of which the Company will transfer the restricted stocks, establishing the terms, quantities and conditions of acquisition of rights related to restricted stocks.

The vesting is conditional to the: (i) continuity of the employment relationship with the Company for three years after the grant date; (ii) achievement of a minimum shareholder return defined by the Board of Directors in the granting agreements and measured at the end of the vesting period; or (iii) any other conditions determined by the Board of Directors in each grant.

The breakdown of the outstanding shares granted is set forth as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Date** | **Quantity** | **Quantity** | |
| **Grant** | **Vesting date** | **Shares granted** | **Outstanding shares** | **Grant (1)**<br>**Fair value of the shares** |
| 06.01.20 | 06.01.23 | 3571736 | 438138 | 21.28 |
| 07.01.21 | 07.01.24 | 2883737 | 938260 | 28.58 |
| 07.01.22 | 07.01.25 | 4703472 | 3756134 | 14.11 |
|  |  | **11158945** | **5132532** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts expressed in Brazilian Reais.

The rollforward of the granted shares for the years ended December 31, 2022 and 2021, is presented as follows:

---

| | |
|:---|:---|
| | **Consolidated** |
| **Outstanding options/stocks as of December 31, 2020** | **7873348** |
| &nbsp;&nbsp;&nbsp; Granted | 2883737 |
| &nbsp;&nbsp;&nbsp; Exercised / Delivered | &nbsp;&nbsp;&nbsp;&nbsp;(944830) |
| &nbsp;&nbsp;&nbsp; Forfeiture | &nbsp;&nbsp;&nbsp;&nbsp;(1996406) |
| &nbsp;&nbsp;&nbsp; Expired | &nbsp;&nbsp;&nbsp;&nbsp;(2420330) |
| **Outstanding stocks as of December 31, 2021** | **5395519** |
| &nbsp;&nbsp;&nbsp; **Granted** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks - July 2022 | 4703472 |
| &nbsp;&nbsp;&nbsp; **Exercised / Delivered:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of June, 2021 | &nbsp;&nbsp;&nbsp;&nbsp;(189285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of June, 2020 | &nbsp;&nbsp;&nbsp;&nbsp;(317386) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of July, 2019 | (83175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of June, 2019 | &nbsp;&nbsp;&nbsp;&nbsp;(107309) |
| &nbsp;&nbsp;&nbsp; **Forfeiture (1) :** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of July, 2022 | &nbsp;&nbsp;&nbsp;&nbsp;(947335) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of July, 2021 | &nbsp;&nbsp;&nbsp;&nbsp;(1554424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of June, 2020 | &nbsp;&nbsp;&nbsp;&nbsp;(1425333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of September, 2019 | (22867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks - grant of July, 2019 | &nbsp;&nbsp;&nbsp;&nbsp;(237142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stocks – grant of June, 2019 | (82203) |
| **Outstanding stocks as of December 31, 2022** | **5132532** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The forfeitures are related to the resignation of eligible executive before
the end of the vesting period.

The Company has registered under shareholders' equity, the fair value of share-based compensation plans in the amount of R$195,655 (R$205,949 as of December 31, 2021) and in the amount of R$15,584 under non-current liabilities (R$11,816 as of December 31, 2021). In the statement of income for the year ended December 31, 2022 the amount recognized as expense was R$19,501 in the Parent Company and R$29,390 in the Consolidated (R$30,194 for the year ended December 31, 2021 in the Parent Company and R$41,684 in the Consolidated).

20. EMPLOYEES BENEFITS PLANS

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 84

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1. Supplementary pension plans

The Company is the sponsor of the following pension plans for its employees and executives: i) Plan II –Variable Contribution with Defined Benefit option – closed for admissions; ii) Plan III – Defined Contribution –open for admissions; and iii) FAF Plan – Defined Benefit - closed for admissions.

These plans are managed by BRF Previdência, a closed supplementary pension entity, of non-economic and non-profit nature, and through its Deliberative Board, is responsible for defining pension objectives and policies, as well as establishing fundamental guidelines aa well as organization, operation and management rules. The Deliberative Board is composed of representatives from the sponsor and participants, in the proportion of 2/3 and 1/3 respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.1. Defined benefit plans

The Plan II is a variable contribution plan structured as defined contribution during the accumulation of mathematic provisions and at the benefit grant date the beneficiary may choose to convert the accumulated balance in a lifetime monthly income (defined benefit). The main related actuarial risks are (i) survival rates above the mortality tables and (ii) actual return on equity below the actual discount rate.

The FAF (Fundação Attílio Francisco Xavier Fontana) Plan aims to complement the benefit paid by the Brazilian Social Security ("INSS – Instituto Nacional de Seguridade Social"). The benefit is calculated based on the income of the participant and the amounts vary according to the type of the retirement, the length of the service and other criteria defined by the plan. The main actuarial risks related are: (i) survival rates above the mortality tables, (ii) turnover lower than expected, (iii) salary growth higher than expected, (iv) actual return on equity below the actual discount rate, (v) changes to the rules of social security, and (vi) actual family composition of the retired employee or executive different than the established assumption.

The actuarial calculations of the plans managed by BRF Previdência are prepared annually by independent specialists and reviewed by Management, according to the rules in force.

In the case of a deficit in the plans results, the sponsor, the participants and the beneficiaries, must support the plan according to the proportion of their contributions.

The economic benefit presented as an asset considers only the portion of the surplus that is actually recoverable. The recovery of the surplus on the plans is through reductions in future contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.2. Defined contribution plan

The Plan III is a defined contribution plan, in which the contributions are known and the benefit depends directly on the contributions made by participants and sponsors, on the contribution time and on the returns obtained through the investment of the contributions. The contributions made by the Company in the year ended December 31, 2022 amounted R$25,507 (R$24,528 for the year ended December 31, 2021). On December 31, 2022, the plan had 39,715 participants (40,553 participants as of December 31, 2021).

When the participants of the Plans II and III terminate the employment relationship with the sponsor, the unused balance of the contributions made by the sponsor forms a surplus fund that may be used to compensate future contributions of the sponsor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.3. Rollforward of defined benefit and variable contribution

The assets and actuarial liabilities, as well as the movement of the related rights and obligations are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **FAF** | **FAF** | **Plan II** | **Plan II** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Composition of actuarial assets and liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Present value of actuarial liabilities | **3121348** | 3340497 | **20822** | &nbsp;&nbsp;&nbsp;&nbsp;23981 |
| &nbsp;&nbsp;&nbsp;Fair value of assets | **(3603611)** | &nbsp;&nbsp;&nbsp;&nbsp;(3547727) | **(22745)** | (22298) |
| &nbsp;&nbsp;&nbsp;(Surplus) Deficit | **(482263)** | &nbsp;&nbsp;&nbsp;&nbsp;(207230) | **(1923)** | 1683 |
| &nbsp;&nbsp;&nbsp;Irrecoverable surplus - (asset ceiling) | **482263** | 207230 | **1923** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Net actuarial (assets) liabilities** | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | 1683 |
| **Rollforward of irrecoverable surplus** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance of irrecoverable surplus | **207230** | 175981 | **-** | 167 |
| &nbsp;&nbsp;&nbsp;Interest on irrecoverable surplus | **18152** | &nbsp;&nbsp;&nbsp;&nbsp;13181 | **-** | 12 |
| &nbsp;&nbsp;&nbsp;Changes in irrecoverable surplus during the year | **256881** | &nbsp;&nbsp;&nbsp;&nbsp;18068 | **1923** | &nbsp;&nbsp;&nbsp;&nbsp;(179) |
| **Ending balance of irrecoverable surplus** | **482263** | 207230 | **1923** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Rollforward of present value of actuarial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance of the present value of liabilities | **3340497** | 3377234 | **23981** | &nbsp;&nbsp;&nbsp;&nbsp;23256 |
| &nbsp;&nbsp;&nbsp;Interest on actuarial obligations | **283241** | 246073 | **1997** | 1627 |
| &nbsp;&nbsp;&nbsp;Current service cost | **23189** | &nbsp;&nbsp;&nbsp;&nbsp;26741 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Past service cost - plan changes | **(32526)** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(546)** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Benefit paid | **(213804)** | &nbsp;&nbsp;&nbsp;&nbsp;(169962) | **(1838)** | (1712) |
| &nbsp;&nbsp;&nbsp;Actuarial losses - experience | **(36292)** | 325778 | **(1358)** | 4278 |
| &nbsp;&nbsp;&nbsp;Actuarial losses - hypothesis | **(242957)** | &nbsp;&nbsp;&nbsp;&nbsp;(465367) | **(1414)** | (3468) |
| **Ending balance of actuarial liabilities** | **3121348** | 3340497 | **20822** | &nbsp;&nbsp;&nbsp;&nbsp;23981 |
| **Rollforward of the fair value of the assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance of the fair value of plan assets | **(3547727)** | &nbsp;&nbsp;&nbsp;&nbsp;(3553215) | **(22298)** | (24170) |
| &nbsp;&nbsp;&nbsp;Interest income on assets plan | **(301394)** | &nbsp;&nbsp;&nbsp;&nbsp;(259254) | **(1851)** | (1694) |
| &nbsp;&nbsp;&nbsp;Benefit paid | **213804** | 169962 | **1838** | 1712 |
| &nbsp;&nbsp;&nbsp;Return on assets higher (lower) than projection | **31706** | &nbsp;&nbsp;&nbsp;&nbsp;94780 | **(434)** | 1854 |
| **Ending Balance of the fair value of the assets** | **(3603611)** | &nbsp;&nbsp;&nbsp;&nbsp;(3547727) | **(22745)** | (22298) |
| **Rollforward of comprehensive income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | **26741** | &nbsp;&nbsp;&nbsp;&nbsp;37883 | **(2485)** | (2734) |
| &nbsp;&nbsp;&nbsp;Reversion to accumulated losses | **(26741)** | (37883) | **2485** | 2734 |
| &nbsp;&nbsp;&nbsp;Actuarial gains (losses) | **311776** | 139589 | **2772** | &nbsp;&nbsp;&nbsp;&nbsp;(810) |
| &nbsp;&nbsp;&nbsp;Return on assets higher (lower) than projection | **(31705)** | (94780) | **434** | (1854) |
| &nbsp;&nbsp;&nbsp;Changes on irrecoverable surplus | **(256881)** | (18068) | **179** | 179 |
| **Ending balance of comprehensive income** | **23190** | &nbsp;&nbsp;&nbsp;&nbsp;26741 | **3385** | (2485) |
| **Costs recognized in statement of income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service costs | **(23190)** | (26741) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Interest on actuarial obligations | **(283241)** | &nbsp;&nbsp;&nbsp;&nbsp;(246073) | **(1997)** | (1627) |
| &nbsp;&nbsp;&nbsp;Projected return on assets | **301394** | 259254 | **1851** | 1694 |
| &nbsp;&nbsp;&nbsp;Interest on irrecoverable surplus | **(18153)** | (13181) | **-** | (12) |
| **Costs recognized in statement of income** | **(23190)** | (26741) | **(146)** | 55 |
| **Estimated costs for the next year** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Costs of defined benefit | **(18153)** | (23190) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Estimated costs for the next year** | **(18153)** | (23190) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 86

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.4. Actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **FAF** | **FAF** | **Plan II** | **Plan II** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Actuarial assumptions** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Economic hypothesis** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount rate | **9.75%** | 8.76% | **9.73%** | 8.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inflation rate | **3.50%** | 3.25% | **3.50%** | 3.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wage growth rate | **4.60%** | 4.34% | **N/A** | N/A |
| &nbsp;&nbsp;&nbsp;**Demographic hypothesis** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortality schedule | **AT-2000 Basic, by gender** | AT-2000 smoothed by 10% | **AT-2000 Basic, by gender** | AT-2000 smoothed by 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortality schedule - Disabled | **CSO-58** | CSO-58 | **CSO-58** | CSO-58 |
| **Demographic data** |  |  |  |  |
| Number of active participants | **5669** | 6054 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| Number of beneficiary participants assisted | **7884** | 7565 | **51** | 52 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.5. The composition of the investment portfolios

The composition of the investment portfolios is presented below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **FAF** | **FAF** | **FAF** | **FAF** | **Plan II** | **Plan II** | **Plan II** | **Plan II** |
| | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 |
| **Composition of the fund's portfolio** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed income | **2385591** | **66.2%** | 2308861 | 65.1% | **19969** | **87.8%** | &nbsp;&nbsp;&nbsp;&nbsp;19386 | 86.9% |
| &nbsp;&nbsp;&nbsp;Variable income | **421622** | **11.7%** | &nbsp;&nbsp;&nbsp;&nbsp;517259 | 14.6% | **1115** | **4.9%** | 1106 | 5.0% |
| &nbsp;&nbsp;&nbsp;Real estate | **342343** | **9.5%** | &nbsp;&nbsp;&nbsp;&nbsp;334905 | 9.4% | **23** | **0.1%** | 20 | 0.1% |
| &nbsp;&nbsp;&nbsp;Structured investments | **454055** | **12.6%** | &nbsp;&nbsp;&nbsp;&nbsp;321779 | 9.1% | **1638** | **7.2%** | 1527 | 6.8% |
| &nbsp;&nbsp;&nbsp;Foreign | **-** | **-** | 45411 | 1.3% | **-** | **-** | 259 | 1.2% |
| &nbsp;&nbsp;&nbsp;Transactions with participants | **-** | **-** | 19512 | 0.5% | **-** | **-** |  | **-** |
|  | **3603611** | **100.0%** | 3547727 | 100.0% | **22745** | **100.0%** | &nbsp;&nbsp;&nbsp;&nbsp;22298 | 100.0% |
| **% of nominal return on assets** | **8.50%** |  | 7.49% |  | **8.30%** |  | 7.25% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.6. Expected benefit payments and average term of payments

The following amounts represent the expected benefit payments for future periods and the average duration of the plan's obligations:

---

| | | |
|:---|:---|:---|
| | **FAF** | **Plan II** |
| 2023 | 227705 | 1869 |
| 2024 | 226703 | 1853 |
| 2025 | 226168 | 1835 |
| 2026 | 225999 | 1814 |
| 2027 | 226916 | 1789 |
| 2028 to 2032 | 1147585 | 8437 |
| Weighted average duration - in years | 10.95 | 8.90 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 87

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| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.7. Sensitivity analysis of the defined benefit plan - FAF

The quantitative sensitivity analysis regarding the relevant assumptions of defined benefit plan – FAF on December 31, 2022 is presented below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Assumptions utilized** | **Variation of (+1%)** | **Variation of (+1%)** | **Variation of (-1%)** | **Variation of (-1%)** |
| <br>**Relevant assumptions** | **Assumptions utilized** | **Average rate** | **Actuarial liabilities** | **Average rate** | **Actuarial liabilities** |
| **Benefit plan - FAF** |  |  |  |  |  |
| Discount rate | 9.75% | 10.75% | &nbsp;&nbsp;&nbsp;&nbsp;3475721 | 8.75% | &nbsp;&nbsp;&nbsp;&nbsp;2826339 |
| Wage growth rate (1) | 1.06% | 2.06% | &nbsp;&nbsp;&nbsp;&nbsp;3179369 | 0.06% | &nbsp;&nbsp;&nbsp;&nbsp;3072449 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Actual rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2. Employee benefits: description
and characteristics of benefits and associated risks

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
|  | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Medical assistance | **119197** | 193545 | **119729** | 195345 |
| F.G.T.S. Penalty (1) | **60657** | &nbsp;&nbsp;&nbsp;&nbsp;53881 | **60657** | &nbsp;&nbsp;&nbsp;&nbsp;53881 |
| Award for length of service | **112225** | &nbsp;&nbsp;&nbsp;&nbsp;98474 | **112225** | &nbsp;&nbsp;&nbsp;&nbsp;98474 |
| Other | **54541** | &nbsp;&nbsp;&nbsp;&nbsp;57553 | **228701** | 204885 |
|  | **346620** | 403453 | **521312** | 552585 |
| Current | **49445** | &nbsp;&nbsp;&nbsp;&nbsp;42097 | **64367** | &nbsp;&nbsp;&nbsp;&nbsp;54354 |
| Non-current | **297175** | 361356 | **456945** | 498231 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) FGTS – Government Severance Indemnity Fund for Employees

The Company has the policy to offer the following post-employment and other employee benefits plans in addition to the pension plans, which are measured by actuarial calculation and recognized in the financial statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.1. Medical plan

The Company offers a medical plan with fixed contribution to the retired employees according to the Law No. 9,656/98.

It is ensured to the retired employee that has contributed to the health plan during the employment relationship for at least 10 years, the right of maintenance as beneficiary, on the same conditions of coverage existing when the employment contract was in force. The main related actuarial risks are (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) medical costs growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.2. F.G.T.S. penalty by dismissal on retirement

As settled by the Regional Labor Court ("TRT") on April 20, 2007, retirement does not affect the employment contract between the Company and its employees. However, when the employee is retired through INSS and is dismissed from the Company, the Company may, in certain cases, enter into a mutual agreement granting the payment of the benefit equivalent to the 20% penalty on the F.G.T.S. balance. The main related actuarial risks are: (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.3. Award for length of service

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 88

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The Company has the policy to reward active employees that attain at least 10 years of services rendered and subsequently every 5 years, with an additional remuneration. The main related actuarial risks rare (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.4. Other parent company

&nbsp;&nbsp;&nbsp;&nbsp;i. Retirement compensation

On retirement, employees with more than 8 years of services rendered to the Company are eligible for additional compensation. The main actuarial related risks are (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;ii. Life insurance

The Company offers life insurance benefits to the employees who, at the time of their termination, are retired and during the employment contract opted for the insurance, with the period of benefit varying from 2 to 3 years. The main related actuarial risks are (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.5. Other - Consolidated

The Company has a liability recorded for defined benefit plans to certain subsidiaries located in Turkey, Saudi Arabia, Qatar, United Arab Emirates, Oman and Kuwait, related to end of service payments when certain conditions are met, which varies based on the labor laws for each country. The main related actuarial risks are: (i) survival rates above the mortality tables, (ii) turnover lower than expected and (iii) salary growth higher than expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.6. Rollforward of actuarial liabilities

The rollforward of actuarial liabilities related to other benefits, which was prepared based on actuarial report reviewed by the Management, are as follows:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 89

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| (in thousands of Brazilian Reais) |

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---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Medical plan** | **Medical plan** | **F.G.T.S. penalty** | **F.G.T.S. penalty** | **Award for length of service** | **Award for length of service** | **Other (1)** | **Other (1)** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Composition of actuarial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Present value of actuarial liabilities | **119729** | 195345 | **60657** | &nbsp;&nbsp;&nbsp;&nbsp;53881 | **112225** | &nbsp;&nbsp;&nbsp;&nbsp;98474 | **228700** | 203202 |
| **Net actuarial liabilities** | **119729** | 195345 | **60657** | &nbsp;&nbsp;&nbsp;&nbsp;53881 | **112225** | &nbsp;&nbsp;&nbsp;&nbsp;98474 | **228700** | 203202 |
| **Rollforward of present value of actuarial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance of present value of actuarial liabilities | **195345** | 185802 | **53881** | 282229 | **98474** | 108908 | **203202** | 199616 |
| &nbsp;&nbsp;&nbsp;Interest on actuarial liabilities | **16805** | &nbsp;&nbsp;&nbsp;&nbsp;13694 | **4071** | &nbsp;&nbsp;&nbsp;&nbsp;15711 | **7997** | 6656 | **15388** | &nbsp;&nbsp;&nbsp;&nbsp;10377 |
| &nbsp;&nbsp;&nbsp;Current service costs | **678** | &nbsp;&nbsp;&nbsp;&nbsp;- | **2480** | &nbsp;&nbsp;&nbsp;&nbsp;14833 | **5221** | 6319 | **22804** | &nbsp;&nbsp;&nbsp;&nbsp;23375 |
| &nbsp;&nbsp;&nbsp;Past service costs (2) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;40800 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;(135180) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;15847 |
| &nbsp;&nbsp;&nbsp;Benefits paid directly by the Company | **(8811)** | &nbsp;&nbsp;&nbsp;&nbsp;(9008) | **(11482)** | &nbsp;&nbsp;&nbsp;&nbsp;(6173) | **(14542)** | (15163) | **(26633)** | (19739) |
| &nbsp;&nbsp;&nbsp;Business combination | **-** | 2081 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | 286 |
| &nbsp;&nbsp;&nbsp;Actuarial (gains) losses - experience | **(55928)** | &nbsp;&nbsp;&nbsp;&nbsp;(6892) | **13589** | 991 | **17357** | &nbsp;&nbsp;&nbsp;&nbsp;10853 | **15764** | 9289 |
| &nbsp;&nbsp;&nbsp;Actuarial (gains) losses - demographic hypothesis | **(12325)** | &nbsp;&nbsp;&nbsp;&nbsp;(6403) | **2237** | (91531) | **1935** | &nbsp;&nbsp;&nbsp;&nbsp;(7125) | **1623** | (13165) |
| &nbsp;&nbsp;&nbsp;Actuarial (gains) losses - economic hypothesis | **(16035)** | (24729) | **(4119)** | (26999) | **(4217)** | (11974) | **19775** | (11396) |
| &nbsp;&nbsp;&nbsp;Actuarial (gains) losses - exchange variation | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(23223)** | (11288) |
| **Ending balance of liabilities** | **119729** | 195345 | **60657** | &nbsp;&nbsp;&nbsp;&nbsp;53881 | **112225** | &nbsp;&nbsp;&nbsp;&nbsp;98474 | **228700** | 203202 |
| **Rollforward of the fair value of the assets** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Benefits paid directly by the Company | **8811** | 9008 | **11482** | 6173 | **14542** | &nbsp;&nbsp;&nbsp;&nbsp;15163 | **26633** | &nbsp;&nbsp;&nbsp;&nbsp;19739 |
| &nbsp;&nbsp;&nbsp;Contributions of the sponsor | **(8811)** | &nbsp;&nbsp;&nbsp;&nbsp;(9008) | **(11482)** | &nbsp;&nbsp;&nbsp;&nbsp;(6173) | **(14542)** | (15163) | **(26633)** | (19739) |
| **Ending Balance of the fair value of the assets** | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Rollforward of comprehensive income** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | **(34720)** | (72744) | **6636** | &nbsp;&nbsp;&nbsp;&nbsp;(110903) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(84050)** | &nbsp;&nbsp;&nbsp;&nbsp;(102324) |
| &nbsp;&nbsp;&nbsp;Actuarial gains (losses) | **84288** | &nbsp;&nbsp;&nbsp;&nbsp;38024 | **(11707)** | 117539 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(37162)** | &nbsp;&nbsp;&nbsp;&nbsp;15272 |
| &nbsp;&nbsp;&nbsp;Exchange variation | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **37204** | 3002 |
| **Ending balance of comprehensive income** | **49568** | (34720) | **(5071)** | 6636 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(84008)** | (84050) |
| **Costs recognized in statement of income** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest on actuarial liabilities | **(16805)** | (13694) | **(4071)** | (15711) | **(7997)** | &nbsp;&nbsp;&nbsp;&nbsp;(6656) | **(15388)** | (10377) |
| &nbsp;&nbsp;&nbsp;Current service costs | **(678)** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(2480)** | (14833) | **(5221)** | &nbsp;&nbsp;&nbsp;&nbsp;(6319) | **(22804)** | (23375) |
| &nbsp;&nbsp;&nbsp;Past service costs (2) | **-** | (40800) | **-** | 135180 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | (15847) |
| &nbsp;&nbsp;&nbsp;Immediate recognition of reduction | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(15075)** | 8246 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Cost recognized in statement of income** | **(17483)** | (54494) | **(6551)** | 104636 | **(28293)** | &nbsp;&nbsp;&nbsp;&nbsp;(4729) | **(38192)** | (49599) |
| **Estimated costs for the next year** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current service costs | **508** | &nbsp;&nbsp;&nbsp;&nbsp;(551) | **2669** | &nbsp;&nbsp;&nbsp;&nbsp;(2480) | **5707** | &nbsp;&nbsp;&nbsp;&nbsp;(5221) | **(22804)** | (20720) |
| &nbsp;&nbsp;&nbsp;Interest on actuarial liabilities | **11434** | (16805) | **5052** | &nbsp;&nbsp;&nbsp;&nbsp;(4071) | **10104** | &nbsp;&nbsp;&nbsp;&nbsp;(7997) | **(15388)** | (12646) |
| **Estimated costs for the next year** | **11942** | (17356) | **7721** | &nbsp;&nbsp;&nbsp;&nbsp;(6551) | **15811** | (13218) | **(38192)** | (33366) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Considers the sum of the retirement compensation, life insurance benefits
and compensation for time of service granted in certain subsidiaries of Company.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Refers to addition of medical plan managed by BRF S.A. and change in the
internal policy for FGTS penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.7. Actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Medical plan** | **Medical plan** | **F.G.T.S. penalty** | **F.G.T.S. penalty** | **Other (1)** | **Other (1)** |
| **Actuarial assumptions** | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Economic hypothesis** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Discount rate | **9.73%** | 8.75% | **9.66%** | 8.62% | **8.71%** | 7.11% |
| &nbsp;&nbsp;&nbsp;Inflation rate | **3.50%** | 3.25% | **3.50%** | 3.25% | **4.88%** | 9.04% |
| &nbsp;&nbsp;&nbsp;Medical inflation | **6.60%** | 6.35% | **N/A** | N/A | **N/A** | N/A |
| &nbsp;&nbsp;&nbsp;Wage growth rate | **N/A** | N/A | **3.50%** | 3.25% | **4.88%** | 9.04% |
| &nbsp;&nbsp;&nbsp;F.G.T.S. balance growth | **N/A** | N/A | **3.70%** | 3.70% | **N/A** | N/A |
| **Demographic hypothesis** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mortality schedule | **AT-2000 Basic** | AT-2000 smoothed by 10% | **AT-2000 Basic** | AT-2000 smoothed by 10% |  |  |
| &nbsp;&nbsp;&nbsp;Disability entry schedule | **N/A** | N/A | **Vindas Álvaro's attenuated 30%** | RRB-44 |  |  |
| &nbsp;&nbsp;&nbsp;Schedule of turnover - BRF's historical | **2022** | 2021 | **2022** | 2021 |  |  |
| **Demoraphic data** |  |  |  |  |  |  |
| Number of active participants | **13776** | &nbsp;&nbsp;&nbsp;&nbsp;14584 | **91490** | &nbsp;&nbsp;&nbsp;&nbsp;96635 |  |  |
| Number of assisted beneficiary participants | **1610** | 1686 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |  |  |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 90

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.8. Expected benefit payments and average duration of obligations

The following amounts represent the expected benefit payments for future years (10 years), from the obligation of benefits granted and the average duration of the plan obligations:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Payments** | **Medical plan** | **F.G.T.S. penalty** | **Award for length of service** | **Other** | **Total** |
| 2023 | 4650 | 16723 | 15254 | 27740 | **64367** |
| 2024 | 5157 | 4552 | 16485 | 17807 | **44001** |
| 2025 | 5687 | 4933 | 14363 | 18858 | **43841** |
| 2026 | 6282 | 5666 | 13658 | 19145 | **44751** |
| 2027 | 6919 | 5992 | 12324 | 20237 | **45472** |
| 2028 to 2032 | 44451 | 37766 | 62940 | 131600 | **276757** |
| Weighted average duration - in years | 17.16 | 5.68 | 5.27 | 9.28 | **8.35** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.9. Sensitivity analysis of post-employment plans

The Company prepared sensitivity analysis regarding the relevant assumptions of the plans as of December 31, 2022, as presented below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Assumptions utilized** | **(+) Variation** | **(+) Variation** | **(-) Variation** | **(-) Variation** |
| <br>**Relevant assumptions** | **Assumptions utilized** | **Average (%)** | **Actuarial liabilities** | **Average (%)** | **Actuarial liabilities** |
| **Medical plan** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Discount rate | 9.74% | 10.74% | &nbsp;&nbsp;&nbsp;&nbsp;102879 | 8.74% | &nbsp;&nbsp;&nbsp;&nbsp;141159 |
| &nbsp;&nbsp;&nbsp;Medical inflation | 6.60% | 7.60% | &nbsp;&nbsp;&nbsp;&nbsp;141105 | 5.60% | &nbsp;&nbsp;&nbsp;&nbsp;102687 |
| **F.G.T.S. penalty** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Discount rate | 9.66% | 10.66% | 57668 | 8.66% | 64023 |
| &nbsp;&nbsp;&nbsp;Wage growth rate | 3.50% | 4.50% | 54466 | 2.50% | 53345 |
| &nbsp;&nbsp;&nbsp;Turnover | Historical | +3% | 44883 | -3% | 66993 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 91

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

21. PROVISION FOR TAX, CIVIL AND LABOR RISKS

The Company and its subsidiaries are involved in certain legal matters arising in the normal course of business, which include civil, environmental, administrative, tax, social security, labor, and other processes.

Company's Management believes that, based on the elements existing at the base date of these financial statements, the provision for tax, civil, environmental, administrative, labor, and other risks, is sufficient to cover eventual losses with administrative and legal proceedings, as set forth below.

The rollforward of the provisions for tax, labor, civil, environmental, administrative and other risks classified as with probable loss, and contingent liabilities is presented below:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **Tax** | **Tax** | **Labor** | **Labor** | **Civil, environmental and other** | **Civil, environmental and other** | **Contingent liabilities (1)** | **Contingent liabilities (1)** | **Total** | **Total** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **397067** | 427166 | **624258** | 631025 | **354531** | 342707 | **97859** | 297097 | **1473715** | 1697995 |
| &nbsp;&nbsp;&nbsp;Additions | 115896 | 174491 | 406103 | 299531 | 58782 | 59968 |  |  | **580781** | 533990 |
| &nbsp;&nbsp;&nbsp;Reversals | (86010) | (100438) | (332210) | (186330) | (67797) | (70194) | (903) | (199238) | **(486920)** | (556200) |
| &nbsp;&nbsp;&nbsp;Payments | (75249) | (165578) | (311047) | (282956) | (41064) | (70304) |  |  | **(427360)** | (518838) |
| &nbsp;&nbsp;&nbsp;Interest | 44415 | 61426 | 133872 | 162988 | 50673 | 92354 |  |  | **228960** | 316768 |
| **Ending balance** | **396119** | 397067 | **520976** | 624258 | **355125** | 354531 | **96956** | 97859 | **1369176** | 1473715 |
| Current |  |  |  |  |  |  |  |  | **863313** | 956193 |
| Non-current |  |  |  |  |  |  |  |  | **505863** | 517522 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Contingent liabilities recognized at fair value as of the acquisition date,
arising from the business combination with Sadia.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Tax** | **Tax** | **Labor** | **Labor** | **Civil, environmental and other** | **Civil, environmental and other** | **Contingent liabilities (1)** | **Contingent liabilities (1)** | **Total** | **Total** |
|  | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Beginning balance** | **400101** | 427302 | **628767** | 634706 | **357013** | 343530 | **131751** | 297182 | **1517632** | 1702720 |
| &nbsp;&nbsp;&nbsp;Additions | 116269 | 174491 | 408903 | 301192 | 59302 | 60561 |  |  | **584474** | 536244 |
| &nbsp;&nbsp;&nbsp;Business combination |  | 2848 |  | 1969 |  | 2217 |  | 33891 | **-** | 40925 |
| &nbsp;&nbsp;&nbsp;Reversals | (86165) | (100438) | (332819) | (187520) | (67826) | (71275) | (903) | (199311) | **(487713)** | (558544) |
| &nbsp;&nbsp;&nbsp;Payments | (75249) | (165578) | (311047) | (282956) | (41064) | (70304) |  |  | **(427360)** | (518838) |
| &nbsp;&nbsp;&nbsp;Interest | 44714 | 61493 | 133987 | 163020 | 50911 | 92438 |  |  | **229612** | 316951 |
| &nbsp;&nbsp;&nbsp;Exchange rate variation | 5 | (17) | (1081) | (1644) | (32) | (154) |  | (11) | **(1108)** | (1826) |
| **Ending balance** | **399675** | 400101 | **526710** | 628767 | **358304** | 357013 | **130848** | 131751 | **1415537** | 1517632 |
| Current |  |  |  |  |  |  |  |  | **867294** | 959132 |
| Non-current |  |  |  |  |  |  |  |  | **548243** | 558500 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Contingent liabilities recognized at fair value as of the acquisition date,
arising from the business combination with Sadia, Hercosul and Mogiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1. Contingencies with probable
losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1.1. Tax

The tax contingencies classified as probable losses relate to the following main legal proceedings:

<u>ICMS:</u> The Company is involved in administrative and judicial disputes related to the ICMS tax arising from credits on the acquisition of goods for consumption, presumed credit, tax substitution, isolated fines, tax rate differential on seasoned product and others, in the amount of R$64,088 (R$71,928 as of December 31, 2021).

<u>PIS and COFINS:</u> The Company is involved in administrative and judicial disputes related to the use of certain tax credits arising from the acquisition of supplies to offset federal taxes payable, in the amount of R$157,121 (R$141,729 as of December 31, 2021).

<u>Other tax contingencies:</u> The Company has other provisions for tax claims related to the payment of social security contribution, CPRB, INCRA, FUNRURAL, SESI/SENAI/SEBRAE, debts included in the government regularization program (REFIS) with deposits awaiting consolidation and conversion into payment, differences in supplementary fiscal obligations, disputes related to presumed IPI credit, revenue omission - IRPJ estimate, import taxes, IOF, Finsocial and others, in the amount of R$178,466 (R$186,444 as of December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1.2. Labor

The Company is defendant in several labor claims either filed by individuals or by the Public Prosecutors Office, mainly related to overtime, thermal rest, unhealthy environment, occupational accidents, among others. None of these claims is individually significant. The Company recorded a provision based on past history of payments, statistical models and on prognosis of loss.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 92

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1.3. Civil and others

Civil and other (environmental, administrative, regulatory, real estate, intellectual property, etc.) contingencies are mainly related to litigations containing allegations of contractual breaches and noncompliance of legal obligations of several natures as disputes arising from contracts in general, intellectual property disputes, regulatory issues, environmental and real state, consumer relations, among others. The claims are mostly for compensation of losses and damages, application of penalties and compliance with obligations to do or not to do. None of these claims is individually significant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2. Contingencies with possible
losses

The Company is involved in contingencies for which losses are possible, in accordance with the assessment prepared by Management with support from legal advisors. On December 31, 2022, the total amount of contingencies classified as possible was R$15,343,060 (R$14,518,170 as of December 31, 2021), of which solely the ones arising from the business combination with Sadia, Hercosul and Mogiana are provisioned, measured by the estimated fair value at the business combination date: R$130,848 (R$131,751 as of December 31, 2021). The remaining possible contingencies are presented below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.1. Tax

The tax contingencies for which losses have been assessed as possible amounted to R$13,247,512 as of December 31, 2022 (R$12,499,764 as of December 31, 2021). The most relevant cases are set forth below:

<u>PIS and COFINS:</u> The Company is involved in administrative and judicial disputes related to the non-cumulative system due to divergence on the concept of input and the use in the productive process, the requirement of taxation of revenues related to presumed ICMS credits, disputes on the fiscal classification of seasoned meats, Laws 2.445/88 and 2.449/88 ("semestralidade"), untimely credits and others, in the amount of R$7,055,855 (R$6,371,171 as of December 31, 2021).

<u>ICMS:</u> The Company is involved in disputes related to: (i) non-acceptance of ICMS credits in interstate sales from states that unilaterally granted fiscal benefits without the approval of the National Finance Policy Council ("CONFAZ"), the so-called "guerra fiscal" in the amount of R$24,370 (R$253,765 as of December 31, 2021); (ii) lack of evidence of exports in the amount of R$77,163 (R$63,361 as of December 31, 2021); (iii) infraction notices from State of Rio de Janeiro, for the period from 2014 to 2018, related to the supposed non-compliance of Agreement Terms ("TARE") regarding tax benefits, in the amount of R$621,261 (R$567,903 as of December 31, 2021); (iv) Public Civil Action in Rio de Janeiro due do the use of tax benefits, in the amount of R$276,521 (R$249,715 as of December 31, 2021); (v) infraction notice about ICMS in Goiás related to the exclusion of the reversal of the tax credit from the calculation base of PROTEGE, in the amount of R$190,198 (R$184,300 as of December 31, 2021); and (vi) R$1,973,524 (R$2,063,603 on December 31, 2021) related to other claims. The relevant reduction in the amounts related to "guerra fiscal", is mainly due to the recognition of the credits by the States, for which the probability of loss has been changed to remote, according to Complementary Law 160 and ICMS Agreement 190.

<u>Income Tax and Social Contribution (IRPJ and CSLL):</u> The Company is involved in administrative and judicial disputes related to refunds and compensation of negative income tax and social contribution balances, including credits arising from the *Plano Verão* and requirement of IRPJ and CSLL related to the compensation of tax loss carryforwards above the limit of 30% in the incorporation of entities. The contingencies related to these taxes totaled R$1,408,391 (R$1,326,862 as of December 31, 2021).

<u>Profits earned abroad:</u> The Company was assessed by the Brazilian Federal Revenue for alleged underpayment of income tax and social contribution on profits earned by its subsidiaries located abroad, in a total amount of R$779,018 (R$638,361 as of December 31, 2021). The Company's legal defense is based on the facts that the subsidiaries located abroad are subject exclusively to the full taxation in the countries in which they are based as a result of the treaties signed to avoid double taxation.

<u>IPI:</u> The Company disputes administratively and judicially the denial of compensation of presumed IPI credits resulting from purchases of duty-free goods and secondary items. Such discussed cases totaled the amount of R$187,371 (R$182,246 as of December 31, 2021).

<u>Social security taxes:</u> The Company disputes cases related to the charges of social security on payroll, employees profit sharing, GILRAT additional for special retirement financing, SAT/RAT, as well as other cases, in a total amount of R$482,687 (R$417,903 as of December 31, 2021).

<u>Other contingencies:</u> The Company disputes cases related to the requirement of 50% fine on the compensations of PIS, COFINS and IRPJ not approved awaiting final decision of the compensation processes, drawback proof, tax on services

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 93

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

and others of several natures, fees, property tax, import tax and IOF, totaling R$171,153 (R$180,574 as of December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.2. Labor

On December 31, 2022 the labor contingencies assessed as possible loss totaled R$257,365 (R$338,999 as of December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.3. Civil and others

Civil and other (environmental, administrative, regulatory, real estate, intellectual property, etc.) contingencies for which losses were assessed as possible totaled R$1,838,183 (R$1,679,407 as of December 31, 2021) and are mainly related to litigations containing allegations of contractual breaches and noncompliance of legal obligations of several natures as disputes arising from contracts in general, intellectual property disputes, administrative and regulatory issues, environmental and real state, consumer relations, among others. The claims are mostly for compensation of losses and damages, application of penalties and obligations to do or not to do.

22. EQUITY

22.1. Capital stock

On January 17, 2022 an Extraordinary General Shareholders' Meeting was held and approved the amendment to the limit of authorization for capital increase, regardless of statutory reform, which was set to 1,325,000,000 ordinary shares. On the same occasion, the capital increase of the Company was also approved, through public offering of up to 325,000,000 new ordinary shares.

The pricing of the public offering of shares was on February 1, 2022 and the Board of Directors approved the offering of 270,000,000 shares at the price of R$20.00, in a total amount of R$5,400,000. From this amount, R$500,000 were allocated to the capital stock and the remaining was allocated to the formation of a capital reserve. The settlement of the offering was on February 4, 2022 and incurred expenses of R$124,556.

On December 31, 2022, the subscribed and paid capital of the Company was R$13,053,418, which is composed of 1,082,473,246 common book-entry shares with no par value. The value of the capital stock is net of the public offering expenses of R$217,503, made on July 22, 2009 and February 4, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1.1. Breakdown of capital stock by nature

---

| | | |
|:---|:---|:---|
| **Parent company** | **Parent company** | **Parent company** |
|  | **12.31.22** | 12.31.21 |
| Common shares | **1082473246** | &nbsp;&nbsp;&nbsp;&nbsp;812473246 |
| Treasury shares | **(4356397)** | &nbsp;&nbsp;&nbsp;&nbsp;(5053554) |
| **Outstanding shares** | **1078116849** | &nbsp;&nbsp;&nbsp;&nbsp;807419692 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1.2. Breakdown of capital stock by owner

The shareholding position of the shareholders holding more than 5% of the voting stock, management and members of the Board of Directors is presented below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 94

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 |
| **Shareholders** | **Quantity** | **%** | Quantity | % |
| **Major shareholders** |  |  |  |  |
| &nbsp;&nbsp;Marfrig Global Foods S.A. | **360133580** | **33.27** | 269734803 | 33.20 |
| &nbsp;&nbsp;Caixa de Previd. dos Func. do Banco do Brasil | **67560738** | **6.24** | &nbsp;&nbsp;&nbsp;&nbsp;49829952 | 6.13 |
| &nbsp;&nbsp;Kapitalo Investimentos Ltda. | **55730079** | **5.15** | &nbsp;&nbsp;&nbsp;&nbsp;40784398 | 5.02 |
| **Management** |  |  |  |  |
| &nbsp;&nbsp;Board of Directors | **518900** | **0.05** | 6314932 | 0.78 |
| &nbsp;&nbsp;Executives | **655163** | **0.06** | 917317 | 0.11 |
| Treasury shares | **4356397** | **0.40** | 5053554 | 0.62 |
| Other | **593518389** | **54.83** | 439838290 | 54.14 |
|  | **1082473246** | **100.00** | 812473246 | 100.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1.3. Rollforward of outstanding shares

---

| | | |
|:---|:---|:---|
| **Parent company** | **Parent company** | **Parent company** |
| **Quantity of outstanding of shares** | **Quantity of outstanding of shares** | **Quantity of outstanding of shares** |
|  | **12.31.22** | 12.31.21 |
| **Shares at the beginning of the period** | **807419692** | 807707162 |
| &nbsp;&nbsp;Purchase of treasury shares | **-** | &nbsp;&nbsp;&nbsp;&nbsp;(1232300) |
| &nbsp;&nbsp;Issue of shares on 02.01.22 | **270000000** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Delivery of restricted shares | **697157** | 944830 |
| **Shares at the end of the period** | **1078116849** | 807419692 |

---

22.2. Capital reserves and Other equity transactions

The capital reserves contemplate only the balances related with results on the sale and exchange of stocks, in compatibility with the Law 6.404/1976 (*"Lei das S.A"*) – Brazilian Corporate Law.

---

| | | |
|:---|:---|:---|
| **Parent company and Consolidated** | **Parent company and Consolidated** | **Parent company and Consolidated** |
|  | **12.31.22** | 12.31.21 |
| **Capital reserves** | **2338476** | &nbsp;&nbsp;&nbsp;&nbsp;141834 |
| **Other equity transactions** | **(77825)** | (67531) |
| &nbsp;&nbsp;Share-based payments | **195655** | &nbsp;&nbsp;&nbsp;&nbsp;205949 |
| &nbsp;&nbsp;Acquisition of non-controlling interest | **(273260)** | (273260) |
| &nbsp;&nbsp;Capital transactions with controlled entities | **(220)** | &nbsp;&nbsp;&nbsp;&nbsp;(220) |
|  | **2260651** | 74303 |

---

22.3. Absorption of accumulated losses

On January 31, 2022 the Company offset accumulated losses with capital reserves, as provided in Law 6.404/1976 ("*Lei das S.A*") – Brazilian Corporate Law in the amount of R$2,703,358.

22.4. Treasury shares

The Company has 4,356,397 shares held in treasury, with an average cost of R$25.19 per share and corresponding market value of R$36,071.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 95

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | |
|:---|:---|:---|
| **Parent company** | **Parent company** | **Parent company** |
| **Quantity of outstanding of shares** | **Quantity of outstanding of shares** | **Quantity of outstanding of shares** |
|  | **12.31.22** | 12.31.21 |
| **Shares at the beggining of the period** | **5053554** | 4766084 |
| &nbsp;&nbsp;Purchase of treasury shares | **-** | 1232300 |
| &nbsp;&nbsp;Delivery of restricted shares | **(697157)** | &nbsp;&nbsp;&nbsp;&nbsp;(944830) |
| **Shares at the end of the period** | **4356397** | 5053554 |

---

The Company has share buyback program, approved on September 30, 2021 up to the limit of 3,696,858 common shares, with an 18-month term. Up to December 31, 2022, the Company repurchased 1,232,300 common shares at the cost of R$27,721 under the Restricted Shares Plan.

23. EARNINGS (LOSS) PER SHARE

---

| | | |
|:---|:---|:---|
| | Continued operations | Continued operations |
| | **12.31.22** | 12.31.21 |
| **Basic numerator** |  |  |
| &nbsp;&nbsp;Net earnings (loss) for the period attributable to controlling shareholders | **(3115455)** | 499385 |
| **Basic denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| **Net earnings (loss) per share basic - R$** | **(2.96)** | &nbsp;&nbsp;&nbsp;&nbsp;0.62 |
| **Diluted numerator** |  |  |
| &nbsp;&nbsp;Net earnings (loss) for the period attributable to controlling shareholders | **(3115455)** | 499385 |
| **Diluted denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| &nbsp;&nbsp;Number of potential shares | **-** | 749167 |
| &nbsp;&nbsp;Weighted average number of outstanding shares - diluted | **1052606000** | 808678648 |
| **Net earnings (loss) per share diluted - R$** | **(2.96)** | &nbsp;&nbsp;&nbsp;&nbsp;0.62 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 96

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | |
|:---|:---|:---|
| | Discontinued operations | Discontinued operations |
| | **12.31.22** | 12.31.21 |
| **Basic numerator** |  |  |
| &nbsp;&nbsp;Net loss for the year attributable to controlling shareholders | **(50948)** | (79930) |
| **Basic denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| **Net loss per share basic - R$** | **(0.05)** | (0.10) |
| **Diluted numerator** |  |  |
| &nbsp;&nbsp;Net loss for the year attributable to controlling shareholders | **(50948)** | (79930) |
| **Diluted denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| &nbsp;&nbsp;Number of potential shares | **-** |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - diluted | **1052606000** | 807929481 |
| **Net loss per share diluted - R$** | **(0.05)** | (0.10) |

---

---

| | | |
|:---|:---|:---|
| | Continued and discontinued operations | Continued and discontinued operations |
| | **12.31.22** | 12.31.21 |
| **Basic numerator** |  |  |
| &nbsp;&nbsp;Net earnings (loss) for the period attributable to controlling shareholders | **(3166403)** | 419455 |
| **Basic denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| **Net earnings (loss) per share basic - R$** | **(3.01)** | &nbsp;&nbsp;&nbsp;&nbsp;0.52 |
| **Diluted numerator** |  |  |
| &nbsp;&nbsp;Net earnings (loss) for the period attributable to controlling shareholders | **(3166403)** | 419455 |
| **Diluted denominator** |  |  |
| &nbsp;&nbsp;Weighted average number of outstanding shares - basic (except treasury shares) | **1052606000** | 807929481 |
| &nbsp;&nbsp;Number of potential shares | **-** | 749167 |
| &nbsp;&nbsp;Weighted average number of outstanding shares - diluted | **1052606000** | 808678648 |
| **Net earnings (loss) per share diluted - R$** | **(3.01)** | &nbsp;&nbsp;&nbsp;&nbsp;0.52 |

---

24. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

24.1. Overview

In the ordinary course of business, the Company is exposed to credit, liquidity and market risks, which are actively managed in compliance with the Financial Risk Management Policy ("Risk Policy") and internal guidelines and strategic documents subject to such policy, executing the formal designation of its hedge accounting relations. The Risk Policy was approved by the Board of Directors on December 15, 2022, with a maximum validity of one year and validity in 2023 and is available at the Company's website.

The Company's risk management strategy, guided by the Risk Policy, has as main objectives:

» To protect the Company's operating and financial results, as well as its equity from adverse changes in the market prices, particularly commodities, foreign exchange and interests;

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 97

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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» To protect the Company against counterparty risks in existing financial operations as well as to establish guidelines for sustaining the necessary liquidity to fulfil its financial commitments;

» To protect the cash of Company against price volatilities, adverse conditions in the markets in which the Company acts and adverse conditions in its production chain.

The Risk Policy defines the governance of the bodies responsible for the execution, tracking and approval of the risk management strategies, as well as the limits and instruments that can be used.

Additionally, the Management of the Company approved the following policies on November 10, 2021, which are available at the Company's website:

» Financial Policy, which aims to: (i) establish guidelines for the management of the Company's financial debt and capital structure; and (ii) guide the Company's decision-making in connection with cash management (financial investments).

---

| | |
|:---|:---|
| » | Profit Allocation Policy, which aims to establish the practices adopted by the Company regarding the allocation of its profits, providing, among others, the periodicity of payment of dividends and the baseline used to establish the respective amount. |

---

24.2. Credit risk management

The Company is exposed to the credit risk related to the financial assets held: trade and non-trade accounts receivable, marketable securities, derivative instruments and cash and equivalents. The Company's credit risk exposure can be assessed in notes 4, 5 and 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2.1. Credit risk in accounts receivable

The credit risk associated with trade accounts receivable is actively managed through specific systems and is supported by internal policies for credit analysis. The significant level of diversification and geographical dispersion of the customer portfolio significantly reduces the risk. However, the Company chooses to complement the risk management by contracting insurance policies for specific markets. The impairment of these financial assets is carried out based on expected credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2.2. Counterparty credit risk

The credit risk associated with marketable securities, cash and cash equivalents and derivative instruments in general is directed to counterparties with Investment Grade ratings. The maintenance of assets with counterparty risk is constantly assessed according to credit ratings and the Company's portfolio concentration, aligned with the applicable impairment requisites.

On December 31, 2022, the Company held financial investments over R$100,000 at the following financial institutions: Banco Bradesco, Banco Daycoval, Banco do Brasil, Banco Pan, Banco Safra, Banco Santander, Banco Volkswagen, Banco Votorantim, Banco BNP, Banco BTG Pactual, Caixa Econômica Federal, HSBC, J.P. Morgan e XP.

The Company also held derivative contracts with the following financial institutions: Banco Bradesco, Banco Itaú, Banco Safra, Banco Santander, Banco Votorantim, Bank Of America Merrill Lynch, Banco BNP, Banco BTG Pactual, Citibank, Goldman Sachs, J.P. Morgan Chase Bank, Morgan Stanley, Rabobank, T.Garanti Bankasi A.Ş. e XP.

24.3. Capital management and liquidity risk

The Company is exposed to liquidity risk as far as it needs cash or other financial assets to settle its obligations in the respective terms. The Company's cash and liquidity strategy takes into consideration historical volatility scenarios of results as well as simulations of sectorial and systemic crisis. It is grounded on allowing resilience in scenarios of capital restriction.

The ideal capital structure definition at BRF is essentially associated with (i) strong cash position as a tolerance factor for liquidity shocks, which includes minimum cash analysis; (ii) net indebtedness; and (iii) maximization of the capital opportunity cost.

On December 31, 2022, the non-current consolidated gross debt, as presented below, represented 83.75% (86.78% as of December 31, 2021) of the total gross debt, which has an average term higher than nine years.

The Company monitors the gross debt and net debt as set forth below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 98

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | 12.31.21 |
|  | **Current** | **Non-current** | **Total** | Total |
| Foreign currency loans and borrowings | **(1954086)** | **(10595095)** | **(12549181)** | &nbsp;&nbsp;&nbsp;&nbsp;(16343552) |
| Local currency loans and borrowings | **(1925788)** | **(9042031)** | **(10967819)** | (9112478) |
| Derivative financial instruments, net | **38397** | **(164416)** | **(126019)** | (223949) |
| **Gross debt** | **(3841477)** | **(19801542)** | **(23643019)** | &nbsp;&nbsp;&nbsp;&nbsp;(25679979) |
| Cash and cash equivalents | **8130929** | **-** | **8130929** | &nbsp;&nbsp;&nbsp;&nbsp;7528820 |
| Marketable securities | **418373** | **406402** | **824775** | &nbsp;&nbsp;&nbsp;&nbsp;794268 |
| Restricted cash | **-** | **89717** | **89717** | 24964 |
|  | **8549302** | **496119** | **9045421** | &nbsp;&nbsp;&nbsp;&nbsp;8348052 |
| **Net debt** | **4707825** | **(19305423)** | **(14597598)** | &nbsp;&nbsp;&nbsp;&nbsp;(17331927) |

---

The table below summarizes the significant commitments and contractual obligations that may impact the Company's liquidity:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| | **Book <br> value** | **Contractual cash flow** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028 onwards** |
| **Non derivative financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and borrowings | 20386858 | 35130699 | &nbsp;&nbsp;&nbsp;&nbsp;4993766 | &nbsp;&nbsp;&nbsp;&nbsp;3089133 | &nbsp;&nbsp;&nbsp;&nbsp;2318897 | &nbsp;&nbsp;&nbsp;&nbsp;4415081 | &nbsp;&nbsp;&nbsp;&nbsp;3818035 | 16495787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal |  | 23781101 | &nbsp;&nbsp;&nbsp;&nbsp;3515926 | &nbsp;&nbsp;&nbsp;&nbsp;1885554 | &nbsp;&nbsp;&nbsp;&nbsp;1202628 | &nbsp;&nbsp;&nbsp;&nbsp;3377732 | &nbsp;&nbsp;&nbsp;&nbsp;2971438 | 10827823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest |  | 11349598 | &nbsp;&nbsp;&nbsp;&nbsp;1477840 | &nbsp;&nbsp;&nbsp;&nbsp;1203579 | &nbsp;&nbsp;&nbsp;&nbsp;1116269 | &nbsp;&nbsp;&nbsp;&nbsp;1037349 | &nbsp;&nbsp;&nbsp;&nbsp;846597 | &nbsp;&nbsp;&nbsp;&nbsp;5667964 |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | 11219928 | 11399126 | 11391667 | &nbsp;&nbsp;&nbsp;&nbsp;4115 | &nbsp;&nbsp;&nbsp;&nbsp;1725 | &nbsp;&nbsp;&nbsp;&nbsp;1619 |  |  |
| &nbsp;&nbsp;&nbsp;Supply chain finance | &nbsp;&nbsp;&nbsp;&nbsp;1393137 | &nbsp;&nbsp;&nbsp;&nbsp;1421706 | &nbsp;&nbsp;&nbsp;&nbsp;1421706 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;2626963 | &nbsp;&nbsp;&nbsp;&nbsp;3352922 | &nbsp;&nbsp;&nbsp;&nbsp;557270 | &nbsp;&nbsp;&nbsp;&nbsp;528830 | &nbsp;&nbsp;&nbsp;&nbsp;459354 | &nbsp;&nbsp;&nbsp;&nbsp;385520 | &nbsp;&nbsp;&nbsp;&nbsp;312644 | &nbsp;&nbsp;&nbsp;&nbsp;1109304 |
| **Derivative financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Financial instruments designated as cash flow hedge** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives | &nbsp;&nbsp;&nbsp;&nbsp;206635 | &nbsp;&nbsp;&nbsp;&nbsp;206635 | 31935 | 52698 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;7864 | &nbsp;&nbsp;&nbsp;&nbsp;114138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | 17551 | 17551 | 17551 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodities derivatives | 26730 | 26730 | 26730 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Financial instruments not designated as cash flow hedge** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | &nbsp;&nbsp;&nbsp;&nbsp;2059 | &nbsp;&nbsp;&nbsp;&nbsp;2059 | &nbsp;&nbsp;&nbsp;&nbsp;2059 | - | - | - | - | - |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| | **Book <br> value** | **Contractual cash flow** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028 onwards** |
| **Non derivative financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and borrowings | 23517000 | 36139951 | &nbsp;&nbsp;&nbsp;&nbsp;4326351 | &nbsp;&nbsp;&nbsp;&nbsp;1602785 | &nbsp;&nbsp;&nbsp;&nbsp;2704626 | &nbsp;&nbsp;&nbsp;&nbsp;2263426 | &nbsp;&nbsp;&nbsp;&nbsp;4420322 | 20822441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal |  | 24338376 | &nbsp;&nbsp;&nbsp;&nbsp;2927191 | &nbsp;&nbsp;&nbsp;&nbsp;972150 | &nbsp;&nbsp;&nbsp;&nbsp;1940828 | &nbsp;&nbsp;&nbsp;&nbsp;1200318 | &nbsp;&nbsp;&nbsp;&nbsp;3429736 | 13868153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest |  | 11801575 | &nbsp;&nbsp;&nbsp;&nbsp;1399160 | &nbsp;&nbsp;&nbsp;&nbsp;630635 | &nbsp;&nbsp;&nbsp;&nbsp;763798 | &nbsp;&nbsp;&nbsp;&nbsp;1063108 | &nbsp;&nbsp;&nbsp;&nbsp;990586 | &nbsp;&nbsp;&nbsp;&nbsp;6954288 |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | 12743087 | 12924646 | 12917187 | &nbsp;&nbsp;&nbsp;&nbsp;4115 | &nbsp;&nbsp;&nbsp;&nbsp;1725 | &nbsp;&nbsp;&nbsp;&nbsp;1619 |  |  |
| &nbsp;&nbsp;&nbsp;Supply chain finance | &nbsp;&nbsp;&nbsp;&nbsp;1393137 | &nbsp;&nbsp;&nbsp;&nbsp;1421706 | &nbsp;&nbsp;&nbsp;&nbsp;1421706 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;3044934 | &nbsp;&nbsp;&nbsp;&nbsp;3854512 | &nbsp;&nbsp;&nbsp;&nbsp;723229 | &nbsp;&nbsp;&nbsp;&nbsp;638302 | &nbsp;&nbsp;&nbsp;&nbsp;534429 | &nbsp;&nbsp;&nbsp;&nbsp;419449 | &nbsp;&nbsp;&nbsp;&nbsp;322804 | &nbsp;&nbsp;&nbsp;&nbsp;1216299 |
| **Derivative financial liabilities** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Financial instruments designated as cash flow hedge** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives | &nbsp;&nbsp;&nbsp;&nbsp;206635 | &nbsp;&nbsp;&nbsp;&nbsp;206635 | 31935 | 52698 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;7864 | &nbsp;&nbsp;&nbsp;&nbsp;114138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | 17551 | 17551 | 17551 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodities derivatives | 26730 | 26730 | 26730 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Financial instruments not designated as cash flow hedge** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | &nbsp;&nbsp;&nbsp;&nbsp;6251 | &nbsp;&nbsp;&nbsp;&nbsp;6251 | &nbsp;&nbsp;&nbsp;&nbsp;6251 | - | - | - | - | - |

---

The Company does not expect that the cash outflows to fulfill the obligations shown above will be significantly anticipated by factors unrelated to its best interests, or have its value substantially modified outside the normal course of business.

24.4. Market risk management

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 99

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.4.1. Interest rate risk

The interest rate risk may cause economic losses to the Company resulting from volatility in interest rates that affect its assets and liabilities.

The Company's Risk Policy does not restrict exposure to different interest rates, neither establishes limits for fixed or floating rates. However, the Company continually monitors the market interest rates in order to evaluate any need to enter into hedging transactions to protect from the volatility of such rates and manage the mismatch between its financial assets and liabilities.

The Company's exposure to interest rates is set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  |  |  |  | **12.31.22** |
|  | **Notional** | **Notional** | **Notional** |  |
| **Index** | **Assets** | **Liabilities** | **Derivative financial instruments** | **Exposure, Net** |
| **Fixed** |  |  |  |  |
| &nbsp;&nbsp;Fixed Reais | &nbsp;&nbsp;&nbsp;&nbsp;163403 | (399625) | (959700) | **(1195922)** |
| &nbsp;&nbsp;Fixed U.S. Dollars (USD) | &nbsp;&nbsp;&nbsp;&nbsp;4368536 | &nbsp;&nbsp;&nbsp;&nbsp;(13543817) | &nbsp;&nbsp;&nbsp;&nbsp;3430151 | **(5745130)** |
| &nbsp;&nbsp;Fixed Turkish Liras (TRY) | 44676 | (512500) | (208708) | **(676532)** |
| &nbsp;&nbsp;Fixed Euros (EUR) | 88925 |  | &nbsp;&nbsp;&nbsp;&nbsp;490107 | **579032** |
| &nbsp;&nbsp;Fixed Kwanza (AOA) | 74278 |  |  | **74278** |
| &nbsp;&nbsp;Fixed Other | 39841 |  |  | **39841** |
| **Floating** |  |  |  |  |
| &nbsp;&nbsp;Floating IPCA Reais |  | (5574682) | &nbsp;&nbsp;&nbsp;&nbsp;4590000 | **(984682)** |
| &nbsp;&nbsp;Floating CDI Reais | &nbsp;&nbsp;&nbsp;&nbsp;4265762 | (2555558) | (7341850) | **(5631646)** |
| &nbsp;&nbsp;Floating Libor U.S. Dollars (USD) |  | (130443) |  | **(130443)** |
|  | **9045421** | **(22716625)** | **-** | **(13671204)** |
| **Interest and fair value adjustment of derivatives** |  | (800375) | (126019) | **(926394)** |
| **Total** | **9045421** | **(23517000)** | **(126019)** | **(14597598)** |

---

The derivative financial instruments used to hedge the exposure to interest rates as of December 31, 2022 are presented in the table below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
|  |  |  |  |  |  |  | **Fair value (R$)** | **Fair value (R$)** |
| **Fair value hedge - Derivative instruments** | **Hedged Object** | **Maturity** | **Asset** | **Liability** | **Notional** | **Notional** | **Instrument** | **Object (1)** |
| **Parent company and Consolidated** |  |  |  |  |  |  |  |  |
| Interest rate swap | Debenture - 1st Issue - 3rd series - IPCA + 5.50% p.a. | 2nd Qtr. 2026 | IPCA + 5.50% p.a. | CDI + 0.29% p.a. | &nbsp;&nbsp;&nbsp;&nbsp;400000 | BRL | 8183 | 7290 |
| Interest rate swap | Debenture - 2nd Issue - 1st series - IPCA + 5.30% p.a. | 3rd Qtr. 2027 | IPCA + 5.30% p.a. | CDI + 2.16% p.a. | &nbsp;&nbsp;&nbsp;&nbsp;705000 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;(7864) | 73656 |
| Interest rate swap | Debenture - 2nd Issue - 2nd series - IPCA + 5.60% p.a. | 3rd Qtr. 2030 | IPCA + 5.60% p.a. | CDI + 2.29% p.a. | &nbsp;&nbsp;&nbsp;&nbsp;1495000 | BRL | (66888) | &nbsp;&nbsp;&nbsp;&nbsp;194763 |
| Interest rate swap | Debenture - 3rd Issue - single series - IPCA + 4.78% p.a. | 2nd Qtr. 2031 | IPCA + 4.78% p.a. | CDI + 0.12% p.a. | &nbsp;&nbsp;&nbsp;&nbsp;1000000 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;(8296) | 75119 |
| Interest rate swap | Debenture - 1st Issue - 1st series - IPCA + 6.83% p.a. | 3rd Qtr. 2032 | IPCA + 6.83% p.a. | 109.32% CDI | &nbsp;&nbsp;&nbsp;&nbsp;990000 | BRL | (37620) | &nbsp;&nbsp;&nbsp;&nbsp;(1951) |
|  |  |  |  |  | **4590000** |  | **(112485)** | **348877** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponds to the accumulated amount of fair value hedge adjustments on
the hedged items, included in the carrying amount of the debentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.4.2. Foreign exchange risk

The risk is the one that may cause unexpected losses to the Company resulting from volatility of the FX rates, reducing its assets and revenues, or increasing its liabilities and costs. The Company's exposure is managed in three dimensions: statement of financial position exposure, operating income exposure and investments exposure.

&nbsp;&nbsp;&nbsp;&nbsp;i. Statement of financial position exposure

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 100

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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The Risk Policy regarding statement of financial position exposure has the objective to balance assets and liabilities denominated in foreign currencies, hedging the Company's statement of financial position by using natural hedges, over-the-counter derivatives and exchange traded futures.

Assets and liabilities denominated in foreign currency for which the exchange variations are recognized in the Financial Results are as follows, summarized in Brazilian Reais:

---

| | | |
|:---|:---|:---|
|  | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;Cash and cash equivalents | **3691668** | &nbsp;&nbsp;&nbsp;&nbsp;2064631 |
| &nbsp;&nbsp;Trade accounts receivable | **6013713** | &nbsp;&nbsp;&nbsp;&nbsp;6377104 |
| &nbsp;&nbsp;Trade accounts payable | **(1484810)** | (1221354) |
| &nbsp;&nbsp;Loans and borrowings | **(12241309)** | (16726412) |
| &nbsp;&nbsp;Other assets and liabilities, net | **35371** | 49732 |
| **Exposure of assets and liabilities in foreign currencies** | **(3985367)** | (9456299) |
| &nbsp;&nbsp;Derivative financial instruments (hedge) | **3721930** | &nbsp;&nbsp;&nbsp;&nbsp;8454971 |
| **Exposure in result, net** | **(263437)** | (1001328) |

---

The net P&L exposure is mainly composed of the following currencies:

---

| | | |
|:---|:---|:---|
| **Net P&L Exposure** | **12.31.22** | 12.31.21 |
| Argentinian Peso (ARS) | **(4614)** | &nbsp;&nbsp;&nbsp;&nbsp;(5783) |
| Angolan kwanza (AOA) | **53723** | &nbsp;&nbsp;&nbsp;&nbsp;318660 |
| Euros (EUR) | **(43445)** | 33381 |
| Chilean Pesos (CLP) | **256121** | &nbsp;&nbsp;&nbsp;&nbsp;169301 |
| Yen (JPY) | **(3268)** | 77178 |
| Turkish Liras (TRY) | **214936** | &nbsp;&nbsp;&nbsp;&nbsp;266541 |
| U.S. Dollars (USD) | **(736890)** | (1860606) |
| **Total** | **(263437)** | (1001328) |

---

The Company is exposed to other currencies, although they have been grouped in the currencies above due to its high correlation or for not being individually significant.

The Company holds more financial liabilities in foreign currencies than assets and, therefore, holds derivative financial instruments to reduce such exposure. The derivative financial instruments acquired to hedge the foreign currency statement of financial position exposure on December 31, 2022 and are set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Derivative instruments not designated** | **Asset** | **Liability** | **Maturity** | **Notional** | **Notional** | **Exercise rate** | **Fair value (R$)** |
| **Parent company** | | | | | | | |
| &nbsp;&nbsp;Non-deliverable forward | EUR | BRL | 1st Qtr. 2023 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;88000 | 5.7452 | (2059) |
| &nbsp;&nbsp;Futures - B3 | USD | BRL | 1st Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;90000 | 5.3240 | &nbsp;&nbsp;&nbsp;&nbsp;3939 |
|  |  |  |  |  |  |  | **1880** |
| **Subsidiaries** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Non-deliverable forward | USD | TRY | 1st Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;30000 | &nbsp;&nbsp;&nbsp;&nbsp;19.2285 | (1294) |
| &nbsp;&nbsp;Non-deliverable forward | USD | TRY | 2nd Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;10000 | &nbsp;&nbsp;&nbsp;&nbsp;20.0300 | (2898) |
|  |  |  |  |  |  |  | **(4192)** |
| **Total Consolidated** |  |  |  |  |  |  | **(2312)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
|  |  |  |  |  |  |  | **Fair value (R$)** | **Fair value (R$)** |
| **Fair value hedge - Derivative instruments** | **Hedged Object** | **Maturity** | **Asset** | **Liability** | **Notional** | **Notional** | **Instrument** | **Object (1)** |
| **Parent company and Consolidated** |  |  |  |  |  |  |  |  |
| FX and interest rate swap | BRF SA BRFSBZ 3.95 | 2nd Qtr. 2023 | FX + 3,95% p.a. | 98.77% CDI | &nbsp;&nbsp;&nbsp;&nbsp;234033 | USD | (31935) | 39107 |
| FX and interest rate swap | BRF SA BRFSBZ 4 3/4 | 3rd Qtr. 2024 | FX + 4,75% p.a. | 104.48% CDI | &nbsp;&nbsp;&nbsp;&nbsp;295363 | USD | (52698) | 22058 |
|  |  |  |  |  | **529396** |  | **(84633)** | **61165** |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 101

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

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&nbsp;&nbsp;&nbsp;&nbsp;ii. Operating income exposure

The Risk Policy regarding operating income exposure has the objective to hedge revenues and costs denominated in foreign currencies. The Company is supported by internal models to measure and monitor these risks, and uses financial instruments for hedging, designating the relations as cash flow hedges.

The Company has more sales in foreign currency than expenditures and, therefore, holds derivative financial instruments to reduce such exposure. The derivative financial instruments designated as cash flow hedges for foreing exchange operating income exposure on December 31, 2022 are set forth below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Cash flow hedge - Derivative instruments** | **Hedged object** | **Asset** | **Liability** | **Maturity** | **Notional** | **Notional** | **Designation rate** | **Fair value** |
| **Parent company and consolidated** | **Parent company and consolidated** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Non-deliverable forward | USD Exports | BRL | USD | 1st Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;268000 | 5.3950 | &nbsp;&nbsp;&nbsp;&nbsp;27249 |
| &nbsp;&nbsp;Non-deliverable forward | USD Exports | BRL | USD | 2nd Qtr. 2023 | USD | 25000 | 5.5406 | 3337 |
| &nbsp;&nbsp;Non-deliverable forward | USD Exports | BRL | USD | 4th Qtr. 2023 | USD | 3000 | 5.5740 | (53) |
| &nbsp;&nbsp;Collar | USD Exports | BRL | USD | 1st Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;130000 | 5.3785 | 2437 |
| &nbsp;&nbsp;Collar | USD Exports | BRL | USD | 2nd Qtr. 2023 | USD | 50000 | 5.5296 | 2929 |
| &nbsp;&nbsp;Collar | USD Exports | BRL | USD | 3rd Qtr. 2023 | USD | 15000 | 5.6892 | 1273 |
| &nbsp;&nbsp;Collar | USD Exports | BRL | USD | 4th Qtr. 2023 | USD | 5000 | 5.7500 | 503 |
|  |  |  |  |  |  |  |  | **37675** |

---

&nbsp;&nbsp;&nbsp;&nbsp;iii. Investments exposure

The Company holds both investments (net assets) and loans (financial liabilities) denominated in foreign currency. To balance the accounting effects of such exposures, some non-derivative financial liabilities are designated as hedging instruments for the investments exposure. The non-derivative financial instruments designated as net investment hedge instruments on December 31, 2022 are set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Net investment hedge - <br> Non-derivative instruments** | **Object (Investment)** | **Liability** | **Maturity** | **Notional** | **Notional** | **Rate** | **Exchange variation (1)** |
| **Parent company and consolidated** |  |  |  |  |  |  |  |
| Bond - BRF SA BRFSBZ 4.35 | Federal Foods LLC | USD | 3rd Qtr. 2026 | USD (2) | 75673 | &nbsp;&nbsp;&nbsp;&nbsp;3.7649 | (110672) |
| Bond - BRF SA BRFSBZ 4.35 | BRF Kuwait Food Management Company WLL | USD | 3rd Qtr. 2026 | USD (2) | &nbsp;&nbsp;&nbsp;&nbsp;108757 | &nbsp;&nbsp;&nbsp;&nbsp;3.7649 | (140614) |
| Bond - BRF SA BRFSBZ 4.35 | Al Khan Foodstuff LLC | USD | 3rd Qtr. 2026 | USD (2) | 65570 | &nbsp;&nbsp;&nbsp;&nbsp;3.7649 | &nbsp;&nbsp;&nbsp;&nbsp;(94776) |
| Bond - BRF SA BRFSBZ 4.35 | BRF Foods GmbH | USD | 3rd Qtr. 2026 | USD (3) | 90000 | &nbsp;&nbsp;&nbsp;&nbsp;5.1629 | (4932) |
| Bond - BRF SA BRFSBZ 4.35 | Al-Wafi Al-Takamol International for Foods Products | USD | 3rd Qtr. 2026 | USD (3) | 40000 | &nbsp;&nbsp;&nbsp;&nbsp;5.1629 | (2306) |
|  |  |  |  |  |  |  | **(353300)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponds to the effective portion of the hedge result accumulated in Other
Comprehensive Income.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Designated on August 1st, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Designated on November 9, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.4.3. Commodities price risk

The Company uses commodities as production inputs and is exposed to commodities price risk arising from future purchases. The management of such risk is performed through physical inventories, future purchases at fixed price and through derivative financial instruments.

The Risk Policy establishes coverage limits to the flow of purchases of corn and soy with the purpose of reducing the impact due to a price increase of these raw materials. The hedge may be reached using derivatives or by inventory management.

The Company performs purchases at variable prices in future and spot markets and, to hedge such exposure, it holds derivative financial instruments in long position (buy) to fix these prices in advance. The financial instruments designated as cash flow hedges for the variable commodities price exposure on December 31, 2022 are set forth below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 102

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Cash flow hedge - Derivative instruments** | **Hedged object** | **Index** | **Maturity** | **Quantity** | **Quantity** | **Exercise price (1)** | **Fair value** |
| **Parent company and consolidated** | | | | | | | |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean meal purchase - floating price | Soybean meal - CBOT | 1st Qtr. 2023 | 32999 | ton | 441.42 | &nbsp;&nbsp;&nbsp;&nbsp;13379 |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean meal purchase - floating price | Soybean meal - CBOT | 2nd Qtr. 2023 | 20000 | ton | 435.41 | 7566 |
| &nbsp;&nbsp;Collar - buy | Soybean meal purchase - floating price | Soybean meal - CBOT | 1st Qtr. 2023 | 35999 | ton | 478.95 | 3647 |
| &nbsp;&nbsp;Collar - buy | Soybean meal purchase - floating price | Soybean meal - CBOT | 2nd Qtr. 2023 | 33992 | ton | 495.63 | 1172 |
| &nbsp;&nbsp;Collar - buy | Corn purchase - floating price | Corn - CBOT | 1st Qtr. 2023 | 113077 | ton | 256.32 | 3643 |
| &nbsp;&nbsp;Collar - buy | Corn purchase - floating price | Corn - CBOT | 2nd Qtr. 2023 | 67986 | ton | 261.09 | 1458 |
| &nbsp;&nbsp;Corn future - buy | Corn purchase - floating price | Corn - B3 | 1st Qtr. 2023 | 18009 | ton | 1514.07 | 83 |
| &nbsp;&nbsp;Corn future - buy | Corn purchase - floating price | Corn - B3 | 2nd Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;2700 | ton | 1550.00 | 2 |
| &nbsp;&nbsp;Collar - buy | Corn purchase - floating price | Corn - B3 | 1st Qtr. 2023 | 79326 | ton | 1674.15 | (414) |
| &nbsp;&nbsp;Collar - buy | Corn purchase - floating price | Corn - B3 | 2nd Qtr. 2023 | 94635 | ton | 1650.76 | 229 |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 1st Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;3000 | ton | 1353.20 | 928 |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 2nd Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;5000 | ton | 1336.53 | 1800 |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 3rd Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;5997 | ton | 1328.23 | 1428 |
| &nbsp;&nbsp;Non-deliverable forward - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 4th Qtr. 2023 | 501 | ton | 1360.69 | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Collar - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 2nd Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;8001 | ton | 1410.96 | (1451) |
| &nbsp;&nbsp;Collar - buy | Soybean oil purchase - floating price | Soybean oil - CBOT | 3rd Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;2000 | ton | 1410.85 | (253) |
|  |  |  |  | **523223** |  |  | **33217** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Base price of each commodity in USD/ton, except for Corn – B3 denominated
in R$/ton.

In certain cases, the Company performs futures purchases at fixed prices and, to hedge such exposure, it holds derivative financial instruments in short position (sell) to keep these prices at market value. The financial instruments designated as fair value hedges for the fixed commodities price exposure on December 31, 2022 are set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Fair value hedge - Derivative instruments** | **Hedged object** | **Index** | **Maturity** | **Quantity** | **Quantity** | **Exercise price (1)** | **Fair value** |
| **Parent company and consolidated** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Non-deliverable forward - sell | Corn purchase - fixed price | Corn - CBOT | 2nd Qtr. 2023 | 80660 | ton | 255.31 | (3849) |
| &nbsp;&nbsp;Non-deliverable forward - sell | Corn purchase - fixed price | Corn - CBOT | 3rd Qtr. 2023 | 106019 | ton | 244.26 | (1376) |
| &nbsp;&nbsp;Non-deliverable forward - sell | Corn purchase - fixed price | Corn - CBOT | 4th Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;6658 | ton | 247.27 | 226 |
| &nbsp;&nbsp;Non-deliverable forward - sell | Corn purchase - fixed price | Corn - CBOT | 1st Qtr. 2024 | 17999 | ton | 245.66 | 209 |
| &nbsp;&nbsp;Non-deliverable forward - sell | Corn purchase - fixed price | Corn - CBOT | 2nd Qtr. 2024 | &nbsp;&nbsp;&nbsp;&nbsp;3999 | ton | 246.88 | 45 |
| &nbsp;&nbsp;Corn future - sell | Corn purchase - fixed price | Corn - B3 | 2nd Qtr. 2023 | 594 | ton | 1583.55 | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Corn future - sell | Corn purchase - fixed price | Corn - B3 | 3rd Qtr. 2023 | 212922 | ton | 1474.01 | (1618) |
| &nbsp;&nbsp;Corn future - sell | Corn purchase - fixed price | Corn - B3 | 4th Qtr. 2023 | &nbsp;&nbsp;&nbsp;&nbsp;9990 | ton | 1520.03 | &nbsp;&nbsp;&nbsp;&nbsp;(94) |
|  |  |  |  | **438842** |  |  | **(6457)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Base price of each commodity in USD/ton, except for Corn – B3 denominated
in R$/ton.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Fair value hedge - <br> Derivative instruments** | **Protection object** | **Assets** | **Liabilities** | **Maturity** | **Notional** | **Notional** | **Exercise price** | **Fair value** |
| **Parent company and consolidated** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Non-deliverable forward | Cost in USD | BRL | USD | 2nd Qtr. 2023 | USD | 18372 | 5.8861 | 7435 |
| &nbsp;&nbsp;Non-deliverable forward | Cost in USD | BRL | USD | 3rd Qtr. 2023 | USD | 11984 | 5.6260 | 1069 |
| &nbsp;&nbsp;Non-deliverable forward | Cost in USD | BRL | USD | 4th Qtr. 2023 | USD | 1646 | 5.5859 | (40) |
| &nbsp;&nbsp;Non-deliverable forward | Cost in USD | BRL | USD | 1st Qtr. 2024 | USD | 4422 | 5.8015 | 428 |
| &nbsp;&nbsp;Non-deliverable forward | Cost in USD | BRL | USD | 2nd Qtr. 2024 | USD | 987 | 5.8548 | 84 |
|  |  |  |  |  |  |  |  | **8976** |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 103

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

24.5. Effects of hedge instruments on financial information

The effects of the financial instruments for hedging exchange rate, commodities price and interest rates in the income (loss) for the year, in Other Comprehensive Income (Loss) and in the financial position are set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Income (loss) for the year**<br>**12.31.22** | <br>**Note** | **Exposure** | **Hedge accounting** | **Foreign Exchange** | <br>**Commodities** | <br>**Interest Rate** | **Consolidated**<br>**Total** |
| &nbsp;&nbsp;Net Sales |  |  |  | 54047327 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **54047327** |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow | &nbsp;&nbsp;&nbsp;&nbsp;202655 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **202655** |
| &nbsp;&nbsp;Non-derivatives result |  | Operating Results | Cash flow | (444954) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(444954)** |
| **Net Revenue** | **26** |  |  | **53805028** | **-** | **-** | **53805028** |
| &nbsp;&nbsp;Cost of Sales |  |  |  |  | (45235052) | &nbsp;&nbsp;&nbsp;&nbsp;- | **(45235052)** |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow / Fair value |  | (437324) | &nbsp;&nbsp;&nbsp;&nbsp;- | **(437324)** |
| **Cost of Sales** |  |  |  | **-** | **(45672376)** | **-** | **(45672376)** |
| &nbsp;&nbsp;Interests on loans and borrowings |  |  |  |  |  | (1570190) | **(1570190)** |
| &nbsp;&nbsp;Interest Rate Derivatives result |  | Interest expenses | Fair value |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(281453) | **(281453)** |
| &nbsp;&nbsp;Foreign Exchange variation on assets and liabilities |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;474052 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **474052** |
| &nbsp;&nbsp;Foreign Exchange Derivatives result |  | Financial Position | Not designated | (899953) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(899953)** |
| &nbsp;&nbsp;Foreign Exchange Derivatives result |  | Loans in foreign currency | Fair value | (138218) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(138218)** |
| **Effects on Financial Result** | **28** |  |  | **(564119)** | **-** | **(1851643)** | **(2415762)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Other Comprehensive Income**<br>**12.31.22** | **Exposure** | **Hedge accounting** | **Foreign Exchange** | <br>**Commodities** | <br>**Interest Rate** | **Consolidated**<br>**Total** |
| &nbsp;&nbsp;Derivative Instruments - current | Operating Results | Cash flow | 33711 | (60348) | &nbsp;&nbsp;&nbsp;&nbsp;- | **(26637)** |
| &nbsp;&nbsp;Non-derivative Instruments – current | Operating Results | Cash flow | (103686) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(103686)** |
| &nbsp;&nbsp;Non-derivative Instruments – non-current | Operating Results | Cash flow | &nbsp;&nbsp;&nbsp;&nbsp;548639 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **548639** |
| &nbsp;&nbsp;Non-derivative Instruments - non-current | Foreign investments | Net investment | 87929 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **87929** |
| **Other Comprehensive Income (1)** |  |  | **566593** | **(60348)** | **-** | **506245** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Statement of financial position**<br>**12.31.22** | <br>**Note** | **Exposure** | **Hedge accounting** | **Foreign Exchange** | <br>**Commodities** | <br>**Interest Rate** | **Consolidated**<br>**Total** |
| &nbsp;&nbsp;Designated derivatives |  | Operating Results | Cash flow / Fair value | 46651 | 26760 | &nbsp;&nbsp;&nbsp;&nbsp;(197118) | **(123707)** |
| &nbsp;&nbsp;Not designated derivatives |  | Financial Position | Not designated | &nbsp;&nbsp;&nbsp;&nbsp;(2312) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(2312)** |
| **Asset / (Liability) net** |  |  |  | **44339** | **26760** | **(197118)** | **(126019)** |
| &nbsp;&nbsp;Derivative Instruments - current (2) |  | Operating Results | Cash flow | 37675 | 43398 | &nbsp;&nbsp;&nbsp;&nbsp;- | **81073** |
| &nbsp;&nbsp;Non-derivative instruments – current |  | Operating Results | Cash flow | (548639) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(548639)** |
| &nbsp;&nbsp;Non-derivative Instruments - non-current |  | Foreign investments | Net investment | (353300) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | **(353300)** |
| **Other Comprehensive Income (1)** |  |  |  | **(864264)** | **43398** | **-** | **(820866)** |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow / Fair value |  | (18853) | &nbsp;&nbsp;&nbsp;&nbsp;- | **(18853)** |
| **Inventories** | **7** |  |  | **-** | **(18853)** | **-** | **(18853)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All effects are presented gross of taxes.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes R$4,127 related to the time value of the commodity options contracts.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 104

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Income (loss) for the year |  |  |  |  |  |  | Consolidated |
| 12.31.21 | Note | Exposure | Hedge accounting | Foreign Exchange | Commodities | Interest Rate | Total |
| &nbsp;&nbsp;Net Sales |  |  |  | 48327703 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 48327703 |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow | 15602 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 15602 |
| Net Revenue | 26 |  |  | 48343305 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 48343305 |
| &nbsp;&nbsp;Cost of Sales |  |  |  |  | (37858788) | &nbsp;&nbsp;&nbsp;&nbsp;- | (37858788) |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow / Fair value |  | (318821) | &nbsp;&nbsp;&nbsp;&nbsp;- | (318821) |
| Cost of Sales |  |  |  |  | (38177609) | &nbsp;&nbsp;&nbsp;&nbsp;- | (38177609) |
| &nbsp;&nbsp;Interests on loans and borrowings |  |  |  |  |  | (1681078) | &nbsp;&nbsp;&nbsp;&nbsp;(1681078) |
| &nbsp;&nbsp;Interest Rate Derivatives result |  | Interest expenses | Fair value |  |  | (33084) | (33084) |
| &nbsp;&nbsp;Foreign Exchange variation on assets and liabilities |  |  |  | (408269) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (408269) |
| &nbsp;&nbsp;Foreign Exchange Derivatives result |  | Financial Position | Not designated | &nbsp;&nbsp;&nbsp;&nbsp;157573 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;157573 |
| Effects on Financial Result | 28 |  |  | (250696) |  | (1714162) | &nbsp;&nbsp;&nbsp;&nbsp;(1964858) |
| Other Comprehensive Income |  |  |  |  |  |  | Consolidated |
| 12.31.21 |  | Exposure | Hedge accounting | Foreign Exchange | Commodities | Interest Rate | Total |
| &nbsp;&nbsp;Derivative Instruments - current |  | Operating Results | Cash flow | (43978) | (67560) | &nbsp;&nbsp;&nbsp;&nbsp;- | (111538) |
| &nbsp;&nbsp;Non-derivative Instruments – current |  | Operating Results | Cash flow | (444953) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (444953) |
| &nbsp;&nbsp;Non-derivative Instruments – non-current |  | Operating Results | Cash flow | &nbsp;&nbsp;&nbsp;&nbsp;334577 |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;334577 |
| &nbsp;&nbsp;Non-derivative Instruments - non-current |  | Foreign investments | Net investment | (96555) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (96555) |
| Other Comprehensive Income |  |  |  | (250909) | (67560) | &nbsp;&nbsp;&nbsp;&nbsp;- | (318469) |
| Statement of financial position |  |  |  |  |  |  | Consolidated |
| 12.31.21 | Note | Exposure | Hedge accounting | Foreign Exchange | Commodities | Interest Rate | Total |
| &nbsp;&nbsp;Designated derivatives |  | Operating Results | Cash flow / Fair value | (10342) | 47620 | (30108) | 7170 |
| &nbsp;&nbsp;Not designated derivatives |  | Financial Position | Not designated | (231119) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (231119) |
| Asset / (Liability) net |  |  |  | (241461) | 47620 | (30108) | (223949) |
| &nbsp;&nbsp;Derivative Instruments - current |  | Operating Results | Cash flow | 3964 | &nbsp;&nbsp;&nbsp;&nbsp;103746 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;107710 |
| &nbsp;&nbsp;Non-derivative instruments – current |  | Operating Results | Cash flow | (444953) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (444953) |
| &nbsp;&nbsp;Non-derivative instruments – non-current |  | Operating Results | Cash flow | (548640) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (548640) |
| &nbsp;&nbsp;Non-derivative Instruments - non-current |  | Foreign investments | Net investment | (441229) |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (441229) |
| Other Comprehensive Income |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(1430858) | &nbsp;&nbsp;&nbsp;&nbsp;103746 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(1327112) |
| &nbsp;&nbsp;Derivatives result |  | Operating Results | Cash flow / Fair value |  | &nbsp;&nbsp;&nbsp;&nbsp;531732 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;531732 |
| Inventories | 7 |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;531732 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;531732 |

---

On December 16, 2021, the cash flow hedge relations presented below was discontinued because the hedging instruments was non-derivative financial instruments (loans) and no longer met the Company's strategies and objectives.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
| **Cash flow hedge - Non-derivative instruments** | **Hedged object** | **Liability** | **Maturity** | **Notional** | **Notional** | **Designation rate** | **Rate (1)** | **Balance (2)** |
| **Parent company and consolidated** | **Parent company and consolidated** | | | | | | | |
| &nbsp;&nbsp;Bond BRF SA BRFSBZ 3.95 | USD Exports | USD | 2nd Qtr. 2023 | USD | &nbsp;&nbsp;&nbsp;&nbsp;150000 | 2.0387 | &nbsp;&nbsp;&nbsp;&nbsp;5.6963 | (548639) |
|  |  |  |  |  |  |  |  | **(548639)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Average discontinuance rates.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Effective portion of the accumulated foreign exchange variations on the designated
loans.

The amount above will be maintained in Other Comprehensive Income (Loss) until its maturity, according to the previous designation and effectiveness. During the year ended December 31, 2022, the loan Bond BRF SA BRFSBZ 5 7/8, previously designated as hedging instrument for exports, was settled and the amount of R$(444,954) previously accumulated in Other Comprehensive Income (Loss) was reclassified to the statement of income (loss) within Net Sales.

Summarized financial position of derivative financial instruments:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 105

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;**Designated as hedge accounting** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | **64202** | &nbsp;&nbsp;&nbsp;&nbsp;27617 | **64202** | &nbsp;&nbsp;&nbsp;&nbsp;27617 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodities derivatives | **53490** | 105228 | **53490** | 105228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives | **9517** | &nbsp;&nbsp;&nbsp;&nbsp;10457 | **9517** | &nbsp;&nbsp;&nbsp;&nbsp;10457 |
| &nbsp;&nbsp;**Not designated as hedge accounting** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | **3939** | &nbsp;&nbsp;&nbsp;&nbsp;- | **3939** | 2053 |
|  | **131148** | 143302 | **131148** | 145355 |
| Current assets | **120865** | 132498 | **120865** | 134551 |
| Non-current assets | **10283** | &nbsp;&nbsp;&nbsp;&nbsp;10804 | **10283** | &nbsp;&nbsp;&nbsp;&nbsp;10804 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;**Designated as hedge accounting** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | **(17551)** | (36676) | **(17551)** | (37959) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodities derivatives | **(26730)** | (57608) | **(26730)** | (57608) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives | **(206635)** | (40565) | **(206635)** | (40565) |
| &nbsp;&nbsp;**Not designated as hedge accounting** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency derivatives | **(2059)** | &nbsp;&nbsp;&nbsp;&nbsp;(232442) | **(6251)** | &nbsp;&nbsp;&nbsp;&nbsp;(233172) |
|  | **(252975)** | &nbsp;&nbsp;&nbsp;&nbsp;(367291) | **(257167)** | &nbsp;&nbsp;&nbsp;&nbsp;(369304) |
| Current liabilities | **(78276)** | &nbsp;&nbsp;&nbsp;&nbsp;(325430) | **(82468)** | &nbsp;&nbsp;&nbsp;&nbsp;(327443) |
| Non-current liabilities | **(174699)** | (41861) | **(174699)** | (41861) |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 106

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

24.6. Sensitivity analysis

Management believes that the most relevant risks that may affect the Company's results are the volatility of commodities prices and foreign exchange rates. Currently the fluctuation of the interest rates does not affect significantly the Company's results since Management has chosen to keep at fixed rates a considerable portion of its debts.

The amounts below represent the possible impacts (incremental results) of the hedging instruments and their respective hedged positions, considering situations of increase and decrease in the selected risk factors.

The information used in the preparation of the analysis is based on the position as of December 31, 2022, which has been described in the items above. The estimated values may differ significantly to numbers and results that will be effectively registered by the Company. Positive values indicate gains and negative values indicate losses.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** |
| <br>**Exchange rate - Balance** | **Base** | **- 50%** | **- 25%** | **- 10%** | **+ 10%** | **+ 25%** | **+ 50%** |
| **USD** | **5.2177** | **2.6089** | **3.9133** | **4.6959** | **5.7395** | **6.5221** | **7.8266** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | &nbsp;&nbsp;&nbsp;&nbsp;2088710 | &nbsp;&nbsp;&nbsp;&nbsp;1044355 | &nbsp;&nbsp;&nbsp;&nbsp;417742 | (417742) | (1044355) | (2088710) |
| &nbsp;&nbsp;Derivative Instruments - Not designated |  | (1720265) | (860133) | (344053) | &nbsp;&nbsp;&nbsp;&nbsp;344053 | &nbsp;&nbsp;&nbsp;&nbsp;860133 | &nbsp;&nbsp;&nbsp;&nbsp;1720265 |
| **Net effect** |  | **368445** | **184222** | **73689** | **(73689)** | **(184222)** | **(368445)** |
| **EUR** | **5.5694** | **2.7847** | **4.1771** | **5.0125** | **6.1263** | **6.9618** | **8.3541** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | &nbsp;&nbsp;&nbsp;&nbsp;266776 | &nbsp;&nbsp;&nbsp;&nbsp;133388 | 53355 | (53355) | (133388) | (266776) |
| &nbsp;&nbsp;Derivative Instruments - Not designated |  | (245054) | (122527) | (49011) | 49011 | &nbsp;&nbsp;&nbsp;&nbsp;122527 | &nbsp;&nbsp;&nbsp;&nbsp;245054 |
| **Net effect** |  | **21722** | **10861** | **4344** | **(4344)** | **(10861)** | **(21722)** |
| **JPY** | **0.0396** | **0.0198** | **0.0297** | **0.0356** | **0.0435** | **0.0495** | **0.0594** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | &nbsp;&nbsp;&nbsp;&nbsp;1634 | &nbsp;&nbsp;&nbsp;&nbsp;817 | &nbsp;&nbsp;&nbsp;&nbsp;327 | (327) | (817) | (1634) |
| **Net effect** |  | **1634** | **817** | **327** | **(327)** | **(817)** | **(1634)** |
| **TRY** | **0.2788** | **0.1394** | **0.2091** | **0.2509** | **0.3067** | **0.3485** | **0.4182** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | (211822) | (105911) | (42364) | 42364 | &nbsp;&nbsp;&nbsp;&nbsp;105911 | &nbsp;&nbsp;&nbsp;&nbsp;211822 |
| &nbsp;&nbsp;Derivative Instruments - Not designated |  | &nbsp;&nbsp;&nbsp;&nbsp;104354 | 52177 | 20871 | (20871) | (52177) | (104354) |
| **Net effect** |  | **(107468)** | **(53734)** | **(21493)** | **21493** | **53734** | **107468** |
| **AOA** | **0.0104** | **0.0052** | **0.0078** | **0.0093** | **0.0114** | **0.0130** | **0.0156** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | (26862) | (13431) | (5372) | &nbsp;&nbsp;&nbsp;&nbsp;5372 | 13431 | 26862 |
| **Net effect** |  | **(26862)** | **(13431)** | **(5372)** | **5372** | **13431** | **26862** |
| **CLP** | **0.0061** | **0.0031** | **0.0046** | **0.0055** | **0.0067** | **0.0077** | **0.0092** |
| &nbsp;&nbsp;Monetary Assets and Liabilities |  | (128060) | (64030) | (25612) | 25612 | 64030 | &nbsp;&nbsp;&nbsp;&nbsp;128060 |
| **Net effect** |  | **(128060)** | **(64030)** | **(25612)** | **25612** | **64030** | **128060** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** |
| <br>**Exchange rate - Operating results** | **Base** | **- 50%** | **- 25%** | **- 10%** | **+ 10%** | **+ 25%** | **+ 50%** |
| **USD** | **5.2177** | **2.6089** | **3.9133** | **4.6959** | **5.7395** | **6.5221** | **7.8266** |
| &nbsp;&nbsp;Revenue in USD |  | (1293990) | (646995) | (258798) | &nbsp;&nbsp;&nbsp;&nbsp;258798 | &nbsp;&nbsp;&nbsp;&nbsp;646995 | &nbsp;&nbsp;&nbsp;&nbsp;1293990 |
| &nbsp;&nbsp;NDF |  | &nbsp;&nbsp;&nbsp;&nbsp;772220 | &nbsp;&nbsp;&nbsp;&nbsp;386110 | &nbsp;&nbsp;&nbsp;&nbsp;154444 | (154444) | (386110) | (772220) |
| &nbsp;&nbsp;Collar |  | &nbsp;&nbsp;&nbsp;&nbsp;511095 | &nbsp;&nbsp;&nbsp;&nbsp;250210 | 93679 | (34277) | (179827) | (440712) |
| **Net effect** |  | **(10675)** | **(10675)** | **(10675)** | **70077** | **81058** | **81058** |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 107

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** | **Scenario** |
| <br>**Exchange rate - Operating results** | **Base (1)** | **- 50%** | **- 25%** | **- 10%** | **+ 10%** | **+ 25%** | **+ 50%** |
| **USD** | **5.2177** | **2.6089** | **3.9133** | **4.6959** | **5.7395** | **6.5221** | **7.8266** |
| &nbsp;&nbsp;Cost of Sales |  | (97601) | (48801) | (19520) | 19520 | 48801 | 97601 |
| &nbsp;&nbsp;NDF |  | 97601 | 48801 | 19520 | (19520) | (48801) | (97601) |
| **Net effect** |  | **-** | **-** | **-** | **-** | **-** | **-** |
| **Soybean Meal - CBOT** | **514** | **257** | **385** | **462** | **565** | **642** | **771** |
| &nbsp;&nbsp;Cost of Sales |  | 31589 | 15795 | &nbsp;&nbsp;&nbsp;&nbsp;6318 | (6318) | (15795) | (31589) |
| &nbsp;&nbsp;Collar |  | (13454) | (4519) | (576) | &nbsp;&nbsp;&nbsp;&nbsp;1860 | &nbsp;&nbsp;&nbsp;&nbsp;7243 | 16214 |
| &nbsp;&nbsp;NDF |  | (13648) | (6824) | (2730) | &nbsp;&nbsp;&nbsp;&nbsp;2730 | &nbsp;&nbsp;&nbsp;&nbsp;6824 | 13648 |
| **Net effect** |  | **4487** | **4452** | **3012** | **(1728)** | **(1728)** | **(1727)** |
| **Soybean Oil - CBOT** | **1397** | **698** | **1048** | **1257** | **1537** | **1746** | **2095** |
| &nbsp;&nbsp;Cost of Sales |  | 17112 | &nbsp;&nbsp;&nbsp;&nbsp;8556 | &nbsp;&nbsp;&nbsp;&nbsp;3422 | (3422) | (8556) | (17112) |
| &nbsp;&nbsp;Collar |  | (6802) | (3296) | (1174) | &nbsp;&nbsp;&nbsp;&nbsp;1168 | &nbsp;&nbsp;&nbsp;&nbsp;3311 | &nbsp;&nbsp;&nbsp;&nbsp;6817 |
| &nbsp;&nbsp;NDF |  | (10100) | (5050) | (2020) | &nbsp;&nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;&nbsp;5050 | 10100 |
| **Net effect** |  | **210** | **210** | **228** | **(234)** | **(195)** | **(195)** |
| **Corn - CBOT** | **260** | **130** | **195** | **234** | **285** | **324** | **389** |
| &nbsp;&nbsp;Cost of Sales |  | (4447) | (2223) | (889) | &nbsp;&nbsp;&nbsp;&nbsp;889 | &nbsp;&nbsp;&nbsp;&nbsp;2223 | &nbsp;&nbsp;&nbsp;&nbsp;4447 |
| &nbsp;&nbsp;Collar |  | (142169) | (62790) | (15926) | 10338 | 57544 | &nbsp;&nbsp;&nbsp;&nbsp;136924 |
| &nbsp;&nbsp;NDF |  | 27258 | 13629 | &nbsp;&nbsp;&nbsp;&nbsp;5452 | (5452) | (13629) | (27258) |
| **Net effect** |  | **(119358)** | **(51384)** | **(11363)** | **5775** | **46138** | **114113** |
| **Corn - B3** | **1517** | **759** | **1138** | **1366** | **1669** | **1897** | **2276** |
| &nbsp;&nbsp;Cost of Sales |  | (21876) | (10938) | (4375) | &nbsp;&nbsp;&nbsp;&nbsp;4375 | 10938 | 21876 |
| &nbsp;&nbsp;Collar |  | (122349) | (55057) | (14682) | &nbsp;&nbsp;&nbsp;&nbsp;7402 | 47444 | &nbsp;&nbsp;&nbsp;&nbsp;114736 |
| &nbsp;&nbsp;Future |  | &nbsp;&nbsp;&nbsp;&nbsp;151686 | 75843 | 30337 | (30337) | (75843) | (151686) |
| **Net effect** |  | **7461** | **9848** | **11280** | **(18560)** | **(17461)** | **(15074)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Base price of each commodity in USD/ton, except for Corn – B3 denominated
in R$/ton.

24.7. Financial instruments by category

---

| | | | |
|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** |
|  | **12.31.22** | **12.31.22** | **12.31.22** |
| | **Amortized cost** | **Fair value through profit and loss** | **Total** |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and bank | **140724** | **-** | **140724** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | **-** | **3843347** | **3843347** |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | **-** | **380048** | **380048** |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | **27515** | **-** | **27515** |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **5752864** | **274493** | **6027357** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables | **38443** | **-** | **38443** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | **-** | **3939** | **3939** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting (1) | **-** | **127209** | **127209** |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **(11219928)** | **-** | **(11219928)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | **(1393137)** | **-** | **(1393137)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings (2) | **(12925562)** | **(7461296)** | **(20386858)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | **-** | **(2059)** | **(2059)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting (1) | **-** | **(250916)** | **(250916)** |
|  | **(19579081)** | **(3085235)** | **(22664316)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All derivatives are classified at fair value through profit and loss. Those
designated as hedge accounting instruments have their gains and losses also affecting Equity and Inventories.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The part of the loans and borrowings that is object in a fair value hedge
is classified as Fair value through profit and loss. The rest of the loans and borrowings balance is classified as amortized cost and
those designated as cash flow or net investment hedge accounting instruments have their gains and losses also affecting Equity.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 108

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Parent company | Parent company | Parent company |
|  | 12.31.21 | 12.31.21 | 12.31.21 |
| | Amortized cost | Fair value through profit and loss | Total |
| Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and bank | 162445 | &nbsp;&nbsp;&nbsp;&nbsp;- | 162445 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | &nbsp;&nbsp;&nbsp;&nbsp;- | 4471371 | 4471371 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | &nbsp;&nbsp;&nbsp;&nbsp;- | 340209 | 340209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 24964 | &nbsp;&nbsp;&nbsp;&nbsp;- | 24964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | 6872336 | 335566 | 7207902 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 97169 | &nbsp;&nbsp;&nbsp;&nbsp;- | 97169 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting | &nbsp;&nbsp;&nbsp;&nbsp;- | 143302 | 143302 |
| Liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | (10449472) | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(10449472) |
| &nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | (2237975) | &nbsp;&nbsp;&nbsp;&nbsp;- | (2237975) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | (18742749) | (3368431) | &nbsp;&nbsp;&nbsp;&nbsp;(22111180) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | &nbsp;&nbsp;&nbsp;&nbsp;- | (232442) | (232442) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting | &nbsp;&nbsp;&nbsp;&nbsp;- | (134849) | (134849) |
|  | (24273282) | 1554726 | &nbsp;&nbsp;&nbsp;&nbsp;(22718556) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | **12.31.22** |
|  | **Amortized cost** | **Fair value through other comprehensive income** | **Fair value through profit and loss** | **Total** |
| | **Amortized cost** | **Equity instruments** | **Fair value through profit and loss** | **Total** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and bank | **1865077** | **-** | **-** | **1865077** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | **-** | **-** | **6265852** | **6265852** |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | **379145** | **11752** | **433878** | **824775** |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | **89717** | **-** | **-** | **89717** |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **3918570** | **-** | **274493** | **4193063** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables | **38443** | **-** | **-** | **38443** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | **-** | **-** | **3939** | **3939** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting (1) | **-** | **-** | **127209** | **127209** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **(12743087)** | **-** | **-** | **(12743087)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | **(1393137)** | **-** | **-** | **(1393137)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings (2) | **(16055704)** | **-** | **(7461296)** | **(23517000)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated | **-** | **-** | **(6251)** | **(6251)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting (1) | **-** | **-** | **(250916)** | **(250916)** |
|  | **(23900976)** | **11752** | **(613092)** | **(24502316)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All derivatives are classified at fair value through profit and loss. Those
designated as hedge accounting instruments have their gains and losses also affecting Equity and Inventories.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The part of the loans and borrowings that is object in a fair value hedge
is classified as Fair value through profit and loss. The rest of the loans and borrowings balance is classified as amortized cost and
those designated as cash flow or net investment hedge accounting instruments have their gains and losses also affecting Equity.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 109

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Consolidated | Consolidated | Consolidated | Consolidated |
|  | 12.31.21 | 12.31.21 | 12.31.21 | 12.31.21 |
|  | Amortized cost | Fair value through other comprehensive income | Fair value through profit and loss | Total |
| | Amortized cost | Equity instruments | Fair value through profit and loss | Total |
| Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and bank | 2193508 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | 2193508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 5335312 | 5335312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | &nbsp;&nbsp;&nbsp;&nbsp;418637 | 13338 | 362293 | &nbsp;&nbsp;&nbsp;&nbsp;794268 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 24964 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | 24964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | 3709399 | &nbsp;&nbsp;&nbsp;&nbsp;- | 335566 | 4044965 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 97169 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | 97169 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated |  | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;2053 | 2053 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 143302 | &nbsp;&nbsp;&nbsp;&nbsp;143302 |
| Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | (11714624) | &nbsp;&nbsp;&nbsp;&nbsp;- |  | (11714624) |
| &nbsp;&nbsp;&nbsp;&nbsp;Supply chain finance | &nbsp;&nbsp;&nbsp;&nbsp;(2237975) | &nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;(2237975) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | (22087599) | &nbsp;&nbsp;&nbsp;&nbsp;- | (3368431) | (25456030) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives not designated |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (233172) | (233172) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedge accounting |  | &nbsp;&nbsp;&nbsp;&nbsp;- | (136132) | (136132) |
|  | (29596521) | 13338 | 2440791 | (27142392) |

---

24.8. Fair value of financial instruments

The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Depending on the inputs used for measurement, the financial instruments at fair value may be classified into 3 hierarchy levels:

» Level 1 – Uses quoted prices (unadjusted) for identical instruments in active markets. In this category are classified investments in stocks, savings accounts, overnights, term deposits, Financial Treasury Bills ("LFT") and investment funds;

---

| | |
|:---|:---|
| » | Level 2 – Uses prices quoted in active markets for similar instruments, prices quoted for identical or similar instruments in non-active markets and evaluation models for which inputs are observable. In this level are classified the investments in Bank Deposit Certificates ("CDB") and derivatives, which are measured by well-known pricing models: discounted cash flows and Black-Scholes. The observable inputs are interest rates and curves, volatility factors and foreign exchange rates; |

---

» Level 3 – Instruments for which significant inputs are non-observable. The Company does not have financial instruments in this category.

The table below presents the overall classification of financial instruments accounted at fair value by measurement hierarchy. For the year ended December 31, 2022, there were no changes among the 3 levels of hierarchy.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 110

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** | **Parent company** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 | 12.31.21 |
| | **Level 1** | **Level 2** | **Total** | Level 1 | Level 2 | Total |
| **Financial Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;**Fair value through profit and loss** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings account and overnight | **10793** | **-** | **10793** | &nbsp;&nbsp;&nbsp;&nbsp;57584 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;57584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank deposit certificates | **-** | **3675037** | **3675037** | &nbsp;&nbsp;&nbsp;&nbsp;- | 4410146 | 4410146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial treasury bills | **364543** | **-** | **364543** | 324771 | &nbsp;&nbsp;&nbsp;&nbsp;- | 324771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment funds | **18997** | **-** | **18997** | &nbsp;&nbsp;&nbsp;&nbsp;19079 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;19079 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **-** | **274493** | **274493** | &nbsp;&nbsp;&nbsp;&nbsp;- | 335566 | 335566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | **-** | **131148** | **131148** | &nbsp;&nbsp;&nbsp;&nbsp;- | 143302 | 143302 |
| **Financial Liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;**Fair value through profit and loss** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | **-** | **(252975)** | **(252975)** | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(367291) | &nbsp;&nbsp;&nbsp;&nbsp;(367291) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | **-** | **(7461296)** | **(7461296)** | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;(3368431) | &nbsp;&nbsp;&nbsp;&nbsp;(3368431) |
|  | **548358** | **(3633593)** | **(3085235)** | 401434 | 1153292 | 1554726 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **12.31.22** | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 | 12.31.21 |
| | **Level 1** | **Level 2** | **Total** | Level 1 | Level 2 | Total |
| **Financial Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;**Fair value through other comprehensive income** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stocks | **11752** | **-** | **11752** | &nbsp;&nbsp;&nbsp;&nbsp;13338 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;13338 |
| &nbsp;&nbsp;**Fair value through profit and loss** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings account and overnight | **12720** | **-** | **12720** | 701386 | &nbsp;&nbsp;&nbsp;&nbsp;- | 701386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Term deposits | **2495438** | **-** | **2495438** | 179071 | &nbsp;&nbsp;&nbsp;&nbsp;- | 179071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank deposit certificates | **-** | **3754202** | **3754202** | &nbsp;&nbsp;&nbsp;&nbsp;- | 4451214 | 4451214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial treasury bills | **364543** | **-** | **364543** | 324771 | &nbsp;&nbsp;&nbsp;&nbsp;- | 324771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment funds | **19018** | **-** | **19018** | &nbsp;&nbsp;&nbsp;&nbsp;35718 | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;35718 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | **-** | **274493** | **274493** | &nbsp;&nbsp;&nbsp;&nbsp;- | 335566 | 335566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | **-** | **131148** | **131148** | &nbsp;&nbsp;&nbsp;&nbsp;- | 145355 | 145355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other titles | **53809** | **-** | **53809** | 5445 | &nbsp;&nbsp;&nbsp;&nbsp;- | 5445 |
| **Financial Liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;**Fair value through profit and loss** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | **-** | **(257167)** | **(257167)** | &nbsp;&nbsp;&nbsp;&nbsp;- | (369304) | (369304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | **-** | **(7461296)** | **(7461296)** | &nbsp;&nbsp;&nbsp;&nbsp;- | (3368431) | (3368431) |
|  | **2957280** | **(3558620)** | **(601340)** | 1259729 | 1194400 | 2454129 |

---

Except for the items set forth below, the fair value of all other financial instruments is approximate to their book value. The fair value of the bonds set forth below is based on prices observed in active markets, level 1 of the fair value hierarchy, while the debentures are based on level 2 and are measured by discounted cash flows.

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 111

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | **Parent company and Consolidated** | **Parent company and Consolidated** | **Parent company and Consolidated** | **Parent company and Consolidated** | **Parent company and Consolidated** |
|  | |  | **12.31.22** | **12.31.22** | 12.31.21 | 12.31.21 |
| | <br>**Currency** | **Maturity** | **Book <br> value** | **Fair<br> value** | Book <br> value | Fair<br> value |
| BRF S.A. |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 4 3/4 | USD | 2024 | **(1525727)** | **(1513221)** | &nbsp;&nbsp;&nbsp;&nbsp;(1653847) | &nbsp;&nbsp;&nbsp;&nbsp;(1726951) |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 3.95 | USD | 2023 | **(1185479)** | **(1209990)** | &nbsp;&nbsp;&nbsp;&nbsp;(1303821) | &nbsp;&nbsp;&nbsp;&nbsp;(1337246) |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 4 7/8 | USD | 2030 | **(3119390)** | **(2602599)** | &nbsp;&nbsp;&nbsp;&nbsp;(3914280) | &nbsp;&nbsp;&nbsp;&nbsp;(3993593) |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 5 3/4 | USD | 2050 | **(3463081)** | **(2503033)** | &nbsp;&nbsp;&nbsp;&nbsp;(4423083) | &nbsp;&nbsp;&nbsp;&nbsp;(4521103) |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 5 7/8 | USD | 2022 | **-** | **-** | (396802) | (409454) |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 2 3/4 | EUR | 2022 | **-** | **-** | &nbsp;&nbsp;&nbsp;&nbsp;(1072454) | &nbsp;&nbsp;&nbsp;&nbsp;(1076964) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debenture - 1st Issue | BRL | 2032 | **(2571080)** | **(2521309)** | (823946) | (821444) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debenture - 2nd Issue | BRL | 2030 | **(2355427)** | **(2319296)** | &nbsp;&nbsp;&nbsp;&nbsp;(2351363) | &nbsp;&nbsp;&nbsp;&nbsp;(2382298) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debenture - 3rd Issue | BRL | 2031 | **(1013639)** | **(877103)** | &nbsp;&nbsp;&nbsp;&nbsp;(1034706) | (915353) |
| **Parent company** |  |  | **(15233823)** | **(13546551)** | (16974302) | (17184406) |
| BRF GmbH |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BRF SA BRFSBZ 4.35 | USD | 2026 | **(2608613)** | **(2367075)** | &nbsp;&nbsp;&nbsp;&nbsp;(2779725) | &nbsp;&nbsp;&nbsp;&nbsp;(2854701) |
| **Consolidated** |  |  | **(17842436)** | **(15913626)** | (19754027) | (20039107) |

---

25. SEGMENT INFORMATION

The operating segments are reported consistently with the management reports provided to the main strategic and operational decision makers for assessing the performance of each segment and allocation of resources. The operating segments information is prepared considering three reportable segments, being: Brazil, International and Other Segments.

The operating segments include the sales of all distribution channels and are subdivided according to the nature of the products, for which the characteristics are described below:

» <u>Poultry</u>: production and sale of whole poultry and in-natura cuts.

» <u>Pork and others</u>: production and sale of in-natura cuts.

» <u>Processed</u>: production and sale of processed food, frozen and processed products derived from poultry, pork and beef, margarine, vegetables and soybean-based products.

» <u>Other sales</u>: sale of flour for food service and others.

Other segments are comprised of commercialization and development of animal nutrition ingredients, human nutrition, plant nutrition (fertilizers), healthcare (health and wellness), pet food, as well as commercialization of agricultural products.

The items not allocated to the segments are presented as Corporate and refer to relevant events not attributable to the operating segments.

The net sales by nature for each reportable operating segment is set forth below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 112

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | |
|:---|:---|:---|
|  | **Consolidated** | **Consolidated** |
| **Net sales** | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;**Brazil** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In-natura | **5976960** | 6002585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Poultry | **4576600** | 4544724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pork and other | **1400360** | 1457861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Processed | **20878697** | 18729686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other sales | **142131** | 76618 |
|  | **26997788** | 24808889 |
| &nbsp;&nbsp;**International** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In-natura | **20044710** | 18212688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Poultry | **18110329** | 15818512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pork and other | **1934381** | 2394176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Processed | **3679233** | 2955431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other sales | **379192** | &nbsp;&nbsp;&nbsp;&nbsp;346585 |
|  | **24103135** | 21514704 |
| &nbsp;&nbsp;**Other segments** | **2704105** | 2019712 |
|  | **53805028** | 48343305 |

---

The income (loss) before financial results for each segment and for Corporate is set forth below:

---

| | | |
|:---|:---|:---|
|  | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;Brazil | **(352138)** | 1583899 |
| &nbsp;&nbsp;International | **403661** | &nbsp;&nbsp;&nbsp;&nbsp;942006 |
| &nbsp;&nbsp;Other segments | **440062** | &nbsp;&nbsp;&nbsp;&nbsp;393477 |
| **Sub total** | **491585** | 2919382 |
| &nbsp;&nbsp;Corporate | **(627874)** | 90405 |
|  | **(136289)** | 3009787 |

---

The composition of the main effects not allocated to the operating segments and presented as Corporate is set forth below:

---

| | | |
|:---|:---|:---|
|  | **Consolidated** | **Consolidated** |
| **Corporate** | **12.31.22** | 12.31.21 |
| Investigations involving the Company (note 1.3) | **(588774)** | &nbsp;&nbsp;&nbsp;&nbsp;(9003) |
| Reversal/(provision) for tax and civil contingencies | **(50397)** | 30587 |
| Expenses COVID-19 (1) | **(1224)** | (74482) |
| Gains (losses) with demobilization | **1398** | &nbsp;&nbsp;&nbsp;&nbsp;(6814) |
| Results with sale and disposal of fixed assets | **3582** | 65884 |
| Result in the sale of investments | **-** | 76148 |
| Other | **7541** | 8085 |
|  | **(627874)** | 90405 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mainly comprised of donations in Brazil, consultants and expenses with health
and safety, which are not associated with the business segments.

No customer individually or in aggregate (economic group) accounted for more than 5% of net sales for the years ended December 31, 2022 and 2021.

The goodwill arising from business combinations and the intangible assets with indefinite useful life (trademarks) were allocated to the reportable operating segments, considering the economic benefits generated by such intangible assets. The allocation of these intangible assets is presented below:

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 113

---

| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Goodwill** | **Goodwill** | **Trademarks** | **Trademarks** | **Total** | **Total** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| Brazil | **1151498** | 1151498 | **982478** | 982478 | **2133976** | 2133976 |
| International | **1865390** | 1813986 | **423846** | 275982 | **2289236** | 2089968 |
| Other segments | **457215** | 459699 | **474875** | 474875 | **932090** | 934574 |
|  | **3474103** | 3425183 | **1881199** | 1733335 | **5355302** | 5158518 |

---

Information related to total assets by reportable segment is not disclosed, as it is not included in the set of information made available to the Company's management, which makes investment decisions and determine allocation of resources based on information about the consolidated assets.

26. NET SALES

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Gross sales** |  |  |  |  |
| &nbsp;&nbsp;Brazil | **33325565** | &nbsp;&nbsp;&nbsp;&nbsp;30700510 | **33325565** | &nbsp;&nbsp;&nbsp;&nbsp;30700510 |
| &nbsp;&nbsp;International | **18119377** | &nbsp;&nbsp;&nbsp;&nbsp;15752886 | **25253452** | &nbsp;&nbsp;&nbsp;&nbsp;22959318 |
| &nbsp;&nbsp;Other segments | **1862626** | 1757620 | **3305974** | 2319991 |
|  | **53307568** | &nbsp;&nbsp;&nbsp;&nbsp;48211016 | **61884991** | &nbsp;&nbsp;&nbsp;&nbsp;55979819 |
| **Sales deductions** |  |  |  |  |
| &nbsp;&nbsp;Brazil | **(6327777)** | (5891621) | **(6327777)** | (5891621) |
| &nbsp;&nbsp;International | **(148112)** | (36560) | **(1150317)** | (1444614) |
| &nbsp;&nbsp;Other segments | **(200819)** | (164357) | **(601869)** | (300279) |
|  | **(6676708)** | (6092538) | **(8079963)** | (7636514) |
| **Net sales** |  |  |  |  |
| &nbsp;&nbsp;Brazil | **26997788** | &nbsp;&nbsp;&nbsp;&nbsp;24808889 | **26997788** | &nbsp;&nbsp;&nbsp;&nbsp;24808889 |
| &nbsp;&nbsp;International | **17971265** | &nbsp;&nbsp;&nbsp;&nbsp;15716326 | **24103135** | &nbsp;&nbsp;&nbsp;&nbsp;21514704 |
| &nbsp;&nbsp;Other segments | **1661807** | 1593263 | **2704105** | 2019712 |
|  | **46630860** | &nbsp;&nbsp;&nbsp;&nbsp;42118478 | **53805028** | &nbsp;&nbsp;&nbsp;&nbsp;48343305 |

---

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 114

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

27. OTHER OPERATING INCOME (EXPENSES), NET

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;Recovery of expenses (1) | **119304** | &nbsp;&nbsp;&nbsp;&nbsp;134224 | **128895** | &nbsp;&nbsp;&nbsp;&nbsp;135662 |
| &nbsp;&nbsp;Provision reversal | **1430** | &nbsp;&nbsp;&nbsp;&nbsp;1107 | **1462** | &nbsp;&nbsp;&nbsp;&nbsp;1143 |
| &nbsp;&nbsp;Scrap sales | **12427** | 12199 | **16226** | 12763 |
| &nbsp;&nbsp;Provision for civil and tax risks | **(101315)** | 33984 | **(102539)** | 33311 |
| &nbsp;&nbsp;Other employees benefits | **(19519)** | &nbsp;&nbsp;&nbsp;&nbsp;(52521) | **(19519)** | &nbsp;&nbsp;&nbsp;&nbsp;(52521) |
| &nbsp;&nbsp;Insurance claims costs | **(21743)** | &nbsp;&nbsp;&nbsp;&nbsp;(35883) | **(22366)** | &nbsp;&nbsp;&nbsp;&nbsp;(35102) |
| &nbsp;&nbsp;Gains (losses) on the disposal of non-financial assets | **(3433)** | 66600 | **(3985)** | &nbsp;&nbsp;&nbsp;&nbsp;141211 |
| &nbsp;&nbsp;Demobilization expenses | **1398** | (5632) | **1398** | (6814) |
| &nbsp;&nbsp;Expenses with investigations (2) | **(588774)** | (9003) | **(588774)** | (9003) |
| &nbsp;&nbsp;Expected credit losses in other receivables | **264** | (579) | **102** | (579) |
| &nbsp;&nbsp;Other | **36685** | &nbsp;&nbsp;&nbsp;&nbsp;(15285) | **43830** | (8808) |
|  | **(563276)** | &nbsp;&nbsp;&nbsp;&nbsp;129211 | **(545270)** | &nbsp;&nbsp;&nbsp;&nbsp;211263 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes recovery of PIS, COFINS and ICMS taxes on inputs, INSS and other
in the amount of R$47,661 for year ended December 31, 2022 in the Parent Company and in the Consolidated (R$62,439 of recovery of PIS
and COFINS taxes for the year ended December 31, 2021 in the Parent Company and in the Consolidated).

&nbsp;&nbsp;&nbsp;&nbsp;(2) As mentioned in note 1. 3.

28. FINANCIAL INCOME (EXPENSES), NET

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
|  | |  | Restated (1) |  | Restated (1) |
| | <br>Note | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Financial income** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on cash and cash equivalents | 4 | **269915** | 88402 | **309162** | 118393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income with marketable securities | 5 | **72468** | 41818 | **126106** | 79425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value through profit and loss |  | **72468** | 41818 | **70939** | 45093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost |  | **-** |  | **55167** | 34332 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on recoverable taxes | 9 | **306473** | 287454 | **307313** | 289772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on other assets |  | **30003** | 45049 | **35467** | 45959 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial income on other assets and liabilities (2) |  | **276892** | 124 | **304887** | &nbsp;&nbsp;&nbsp;&nbsp;4187 |
|  |  | **955751** | 462847 | **1082935** | 537736 |
| **Financial expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interests on loans and borrowings | 15 | **(1656680)** | (1427660) | **(1851643)** | (1635604) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest with related parties | 30 | **(283647)** | (357465) | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on contingencies | 21 | **(138310)** | (239174) | **(138433)** | (239174) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on leases | 18 | **(196223)** | (183714) | **(220406)** | (226444) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on actuarial liabilities |  | **(40559)** | &nbsp;&nbsp;&nbsp;&nbsp;(39881) | **(47385)** | &nbsp;&nbsp;&nbsp;&nbsp;(46741) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount on assignment of credits |  | **(152217)** | &nbsp;&nbsp;&nbsp;&nbsp;(73475) | **(158469)** | &nbsp;&nbsp;&nbsp;&nbsp;(80192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank expenses |  | **(41645)** | &nbsp;&nbsp;&nbsp;&nbsp;(42599) | **(91313)** | &nbsp;&nbsp;&nbsp;&nbsp;(85157) |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes on financial income |  | **(17857)** | &nbsp;&nbsp;&nbsp;&nbsp;(22524) | **(26245)** | &nbsp;&nbsp;&nbsp;&nbsp;(27755) |
| &nbsp;&nbsp;&nbsp;&nbsp;Put/Call Options Result - Business Combinations |  | **-** |  | **-** | (278618) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustment to present value | 6, 16 and 17 | **(994888)** | (631839) | **(976104)** | (634047) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial expenses |  | **(33669)** | &nbsp;&nbsp;&nbsp;&nbsp;(51257) | **(75767)** | &nbsp;&nbsp;&nbsp;&nbsp;(77883) |
|  |  | **(3555695)** | (3069588) | **(3585765)** | (3331615) |
| **Foreign exchange and monetary variations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange rate variation on monetary assets and liabilities |  | **1673386** | (1248153) | **474052** | (407472) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative results |  | **(1084784)** | 139337 | **(1038171)** | 157573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Monetary Gains or Losses (3) |  | **-** | - | **398194** | (797) |
|  |  | **588602** | (1108816) | **(165925)** | (250696) |
|  |  | **(2011342)** | (3715557) | **(2668755)** | (3044575) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company changed the aggregation of the information in order to increase
the level of details, restating the comparative balances in accordance.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Gain of R$275,917 in the securities repurchase – early settlement of
senior notes (note 15.4).

&nbsp;&nbsp;&nbsp;&nbsp;(3) Effects of monetary correction resulting from operations in hyperinflationary
economy (note 3.5).

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 115

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

29. STATEMENT OF INCOME BY NATURE

The Company discloses its statement of income by function and thus presents below the details by nature:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent company** | **Parent company** | **Consolidated** | **Consolidated** |
|  |  | Restated (1) |  | Restated (1) |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| **Costs of sales** |  |  |  |  |
| &nbsp;&nbsp;Raw materials and supplies (2) | **29837291** | 24875915 | **34930469** | 29279943 |
| &nbsp;&nbsp;Salaries and employees benefits (3) | **4296083** | &nbsp;&nbsp;&nbsp;&nbsp;4192367 | **4690868** | &nbsp;&nbsp;&nbsp;&nbsp;4280574 |
| &nbsp;&nbsp;Depreciation | **2169336** | &nbsp;&nbsp;&nbsp;&nbsp;1910104 | **2319631** | &nbsp;&nbsp;&nbsp;&nbsp;2080306 |
| &nbsp;&nbsp;Amortization | **84912** | 71388 | **185852** | &nbsp;&nbsp;&nbsp;&nbsp;150514 |
| &nbsp;&nbsp;Other | **3070376** | &nbsp;&nbsp;&nbsp;&nbsp;2760245 | **3545556** | &nbsp;&nbsp;&nbsp;&nbsp;2859435 |
|  | **39457998** | 33810019 | **45672376** | 38650772 |
| **Sales expenses** |  |  |  |  |
| &nbsp;&nbsp;Indirect and direct logistics expenses | **3685924** | &nbsp;&nbsp;&nbsp;&nbsp;2790629 | **3415266** | &nbsp;&nbsp;&nbsp;&nbsp;2698526 |
| &nbsp;&nbsp;Marketing | **610807** | &nbsp;&nbsp;&nbsp;&nbsp;538164 | **801194** | &nbsp;&nbsp;&nbsp;&nbsp;718151 |
| &nbsp;&nbsp;Salaries and employees benefits (3) | **1129660** | &nbsp;&nbsp;&nbsp;&nbsp;1079123 | **1548788** | &nbsp;&nbsp;&nbsp;&nbsp;1480314 |
| &nbsp;&nbsp;Depreciation | **167282** | &nbsp;&nbsp;&nbsp;&nbsp;177980 | **341009** | &nbsp;&nbsp;&nbsp;&nbsp;345624 |
| &nbsp;&nbsp;Amortization | **49917** | 70040 | **68317** | 94332 |
| &nbsp;&nbsp;Other | **621964** | &nbsp;&nbsp;&nbsp;&nbsp;506815 | **892574** | &nbsp;&nbsp;&nbsp;&nbsp;721303 |
|  | **6265554** | &nbsp;&nbsp;&nbsp;&nbsp;5162751 | **7067148** | &nbsp;&nbsp;&nbsp;&nbsp;6058250 |
| **Administrative expenses** |  |  |  |  |
| &nbsp;&nbsp;Salaries and employees benefits (3) | **190953** | &nbsp;&nbsp;&nbsp;&nbsp;234201 | **319187** | &nbsp;&nbsp;&nbsp;&nbsp;395892 |
| &nbsp;&nbsp;Fees | **46363** | 68340 | **46602** | 68378 |
| &nbsp;&nbsp;Depreciation | **23669** | 19655 | **33896** | 35193 |
| &nbsp;&nbsp;Amortization | **32395** | 38335 | **43000** | 40385 |
| &nbsp;&nbsp;Other (4) | **90147** | &nbsp;&nbsp;&nbsp;&nbsp;182071 | **202142** | &nbsp;&nbsp;&nbsp;&nbsp;283112 |
|  | **383527** | &nbsp;&nbsp;&nbsp;&nbsp;542602 | **644827** | &nbsp;&nbsp;&nbsp;&nbsp;822960 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Restatement of the comparative balances to reflect the changes in the accounting
practices described in note 3.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes recoveries of ICMS, PIS and COFINS taxes on inputs, INSS credits
and export credits in the amount of R$90,865 for the year ended December 31, 2022 (R$62,330 for the year ended December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes expenses on restructuring in the amount of: (i) R$14,820 in
the cost of sales, (ii) R$20,139 in the selling expenses and (iii) R$10,264 in the administrative expenses (null in the same period of
the previous year).

&nbsp;&nbsp;&nbsp;&nbsp;(4) Includes expenses with mergers and acquisitions in the amount of R$7,172
for the year ended December 31, 2022 (R$29,386 for the year ended December 31, 2021).

The Company incurred in expenses with internal research and development of new products of R$33,389 for the year ended December 31, 2022 in the Parent Company and in the Consolidated (R$42,010 in the Parent Company and in the Consolidated for the year ended December 31, 2021).

<br> BRF S.A. \| 2022 AND 2021 FINANCIAL STATEMENTS 116

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| |
|:---|
| [**Table of Contents**](#TableOfContents) |
| (in thousands of Brazilian Reais) |

---

30. RELATED PARTIES

The balances of the transactions with related parties are as follows:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | | **Parent company** | **Parent company** | **Parent company** |
|  | **Accounts receivable** | **Accounts receivable** | **Dividends and interest on shareholders' equity receivable** | **Dividends and interest on shareholders' equity receivable** | **Trade accounts payable** | **Trade accounts payable** | **Other rights** | **Other rights** | **Advances and other liabilities** | **Advances and other liabilities** | **Advances and other liabilities** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | | 12.31.21 |
| &nbsp;&nbsp;Banvit | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **2683** | 609 | **-** |  |  |
| &nbsp;&nbsp;BRF Energia S.A. | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(19925)** | (25932) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;BRF Foods GmbH | **470608** | 608379 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **9** | 137 | **-** |  | (61) |
| &nbsp;&nbsp;BRF Global GmbH | **3903189** | 4937329 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(7042333)** | (1) | (10562776) |
| &nbsp;&nbsp;BRF GmbH | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(1611779)** | (2) | &nbsp;&nbsp;&nbsp;&nbsp;(1830251) |
| &nbsp;&nbsp;BRF Pet S.A. | **-** | 3489 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;(174) | **-** | 588 | **-** |  |  |
| &nbsp;&nbsp;Federal Foods | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  | &nbsp;&nbsp;&nbsp;&nbsp;(517) |
| &nbsp;&nbsp;Hercosul Alimentos Ltda. | **10662** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | 4 | **-** |  |  |
| &nbsp;&nbsp;Hercosul International S.R.L. | **732** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(1519)** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Joody Al Sharqiya Food Production Factory LLC | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;62 | **-** |  |  |
| &nbsp;&nbsp;Mogiana Alimentos S.A. | **19934** | 2741 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(56)** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Sadia Alimentos S.A. | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(4019)** |  | &nbsp;&nbsp;&nbsp;&nbsp;(4265) |
| &nbsp;&nbsp;Sadia Chile S.A. | **258116** | 172499 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **90** | 5 | **-** |  |  |
| &nbsp;&nbsp;Sadia Uruguay S.A. | **-** | 340 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(47141)** |  | (41655) |
| &nbsp;&nbsp;VIP S.A. Empreendimentos e Partic. Imob. | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **64** | 14 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Marfrig Global Foods S.A. | **11251** | 9252 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **(24228)** | (35312) | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Marfrig Chile S.A. | **796** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Quickfood S.A. | **18531** | 8690 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Marfrig Alimentos S.A. | **98** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| &nbsp;&nbsp;Pampeano Alimentos S.A. | **217** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** |  |  |
| **Total** | **4694134** | 5742719 | **64** | 14 | **(45728)** | (61418) | **2783** | 1405 | **(8705272)** |  | (12439525) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The amount corresponds to export pre-payments, usual operation between the
productive units in Brazil with the wholly-owned subsidiaries that operate as trading companies in the international market.

&nbsp;&nbsp;&nbsp;&nbsp;(2) BRF S.A. performs reimbursement to certain subsidiaries for losses incurred
in the normal course of their operations, generating liabilities recorded as Other Obligations with Related Parties.

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| (in thousands of Brazilian Reais) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Accounts receivable** | **Accounts receivable** | **Trade accounts payable** | **Trade accounts payable** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;Marfrig Global Foods S.A. | **11251** | 9252 | **(26970)** | (36058) |
| &nbsp;&nbsp;Marfrig Chile S.A. | **2258** | 1434 | **(42)** | (24) |
| &nbsp;&nbsp;Quickfood S.A. | **18531** | 8690 | **-** |  |
| &nbsp;&nbsp;Marfrig Alimentos S.A. | **98** |  | **-** |  |
| &nbsp;&nbsp;Pampeano Alimentos S.A. | **217** | **-** | **-** | **-** |
| **Total** | **32355** | 19376 | **(27012)** | (36082) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Parent company** | **Parent company** |
|  | **Sales** | **Sales** | **Financial results, net** | **Financial results, net** | **Purchases** | **Purchases** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;BRF Energia S.A. | **-** |  | **-** |  | **(334068)** | (371008) |
| &nbsp;&nbsp;BRF Foods GmbH | **301468** | &nbsp;&nbsp;&nbsp;&nbsp;243153 | **-** |  | **-** |  |
| &nbsp;&nbsp;BRF Global GmbH | **16724840** | 14548332 | **(279784)** | (354483) | **-** |  |
| &nbsp;&nbsp;BRF Pet S.A. | **8681** | 12892 | **-** |  | **(266)** | (137) |
| &nbsp;&nbsp;Establecimiento Levino Zaccardi y Cia. S.A. | **-** |  | **-** | &nbsp;&nbsp;&nbsp;&nbsp;9 | **-** |  |
| &nbsp;&nbsp;Hercosul Alimentos Ltda. | **33697** |  | **-** |  | **(15567)** |  |
| &nbsp;&nbsp;Hercosul Distrib. Ltda. | **4082** |  | **-** |  | **-** |  |
| &nbsp;&nbsp;Hercosul International S.R.L. | **4191** |  | **-** |  | **(6133)** |  |
| &nbsp;&nbsp;Hercosul Solução em Transportes | **-** |  | **-** |  | **(759)** |  |
| &nbsp;&nbsp;Mogiana Alimentos S.A. | **48800** | &nbsp;&nbsp;&nbsp;&nbsp;6490 | **-** |  | **-** |  |
| &nbsp;&nbsp;Sadia Alimentos S.A. | **-** |  | **(171)** | (160) | **-** |  |
| &nbsp;&nbsp;Sadia Chile S.A. | **303095** | &nbsp;&nbsp;&nbsp;&nbsp;194716 | **-** |  | **-** |  |
| &nbsp;&nbsp;Sadia Uruguay S.A. | **103316** | 68104 | **(3692)** | (2831) | **-** |  |
| &nbsp;&nbsp;Marfrig Global Foods S.A. | **76554** | 89311 | **-** |  | **(446024)** | (280535) |
| &nbsp;&nbsp;Marfrig Chile S.A. | **7254** | &nbsp;&nbsp;&nbsp;&nbsp;1311 | **-** |  | **-** |  |
| &nbsp;&nbsp;Quickfood S.A. | **81913** | 38058 | **-** |  | **-** |  |
| &nbsp;&nbsp;Marfrig Alimentos S.A. | **242** | &nbsp;&nbsp;&nbsp;&nbsp;139 | **-** |  | **-** |  |
| &nbsp;&nbsp;Pampeano Alimentos S/A | **237** |  | **-** |  | **-** |  |
| **Total** | **17698371** | 15202506 | **(283647)** | (357465) | **(802817)** | (651680) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Consolidated** | **Consolidated** | **Consolidated** | **Consolidated** |
|  | **Sales** | **Sales** | **Purchases** | **Purchases** |
| | **12.31.22** | 12.31.21 | **12.31.22** | 12.31.21 |
| &nbsp;&nbsp;Marfrig Global Foods S.A. | **76553** | &nbsp;&nbsp;&nbsp;&nbsp;89311 | **(572357)** | (328956) |
| &nbsp;&nbsp;Marfrig Chile S.A. | **15273** | 4866 | **(1187)** | &nbsp;&nbsp;&nbsp;&nbsp;(93) |
| &nbsp;&nbsp;Quickfood S.A. | **84875** | &nbsp;&nbsp;&nbsp;&nbsp;38058 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Marfrig Alimentos S.A. | **242** | 139 | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;Pampeano Alimentos S/A | **237** | &nbsp;&nbsp;&nbsp;&nbsp;- | **-** | &nbsp;&nbsp;&nbsp;&nbsp;- |
| **Total** | **177180** | 132374 | **(573544)** | (329049) |

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The subsidiaries of the Company enter into loan agreements pursuant its cash management strategy respecting market conditions. As of December 31, 2022, the balance of these transactions was R$$2,156,987 (R$2,327,576 as of December 31, 2021).

The Company made contributions related to the post-employment benefit plans of its employees to BRF Previdência, which holds these plans (note 20). Additionally, the Company leased properties owned by BRF Previdência, and for the year ended December 31, 2022 the total amount of lease payments was R$22,241 (R$20,647 for the year ended December 31, 2021).

The Company maintains other transactions with related parties resulting from guarantees, transferences and donations to related associations and institutes, as well as leasing and other commercial transactions with related people and entities. Such transactions are compliant with the Related Party Transactions Policy and are not relevant, individually or in aggregate.

On December 16, 2022, BRF issued a guarantee to the promissory commercial notes issued by Potengi, public offering with limited distribution efforts with maturity in eighteen (18) months. The total amount of the Offer is R$700,000 (seven hundred million Brazilian reais). BRF issued a joint guarantee limited to the amount corresponding to 24% of the Offer amount.

30.1. Management remuneration

The total remuneration and benefits expense with board members, statutory directors and the head of internal audit are set forth below:

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|:---|:---|:---|
|  | **Consolidated** | **Consolidated** |
| | **12.31.22** | 12.31.21 |
| Salary and profit sharing | **35547** | &nbsp;&nbsp;&nbsp;&nbsp;61088 |
| Short-term benefits (1) | **1263** | 1149 |
| Private pension | **834** | 1189 |
| Termination benefits | **1237** | 2118 |
| Share-based payment | **27210** | &nbsp;&nbsp;&nbsp;&nbsp;29198 |
|  | **66091** | &nbsp;&nbsp;&nbsp;&nbsp;94742 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Comprises: medical assistance, educational expenses and others.

In addition, the executive officers (non-statutory) received among remuneration and benefits the total amount of R$18,072 for the year ended December 31, 2022 (R$29,526 for the year ended December 31, 2021).

31. GOVERNMENT GRANTS

The Company has tax benefits related to ICMS granted by the state governments as follows: *Programa de Desenvolvimento Industrial e Comercial de Mato Grosso* ("PRODEIC"), *Programa de Desenvolvimento do Estado de Pernambuco* ("PRODEPE") and *Fundo de Participação e Fomento à Industrialização do Estado de Goiás* ("FOMENTAR"). Such incentives are directly associated to the manufacturing facilities operations, job generation and to the economic and social development.

For the year ended December 31, 2022, the government grants totaled R$337,980 (R$147,463 for the year ended December 31, 2021), which were registered in the statement of income (loss) as Net sales, Cost of sales and Other operating income (expenses), net, according to the nature of each grant.

32. COMMITMENTS

In the normal course of the business, the Company enters into agreements with third parties for the purchase of raw material, mainly corn and soymeal. The agreed prices in these agreements can be fixed or variable. The Company also enters into other agreements, such as electricity supply, packaging supplies, construction of buildings and others for the supply of its manufacturing activities. The firm commitments schedule is set forth below:

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| | | |
|:---|:---|:---|
| **Parent company** | **Parent company** | |
| | **12.31.22** | **Consolidated**<br>**12.31.22** |
| **Current** | **5557615** | **6152570** |
| **Non-current** | **2111107** | **2257101** |
| &nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;887480 | &nbsp;&nbsp;&nbsp;&nbsp;971287 |
| &nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;402163 | &nbsp;&nbsp;&nbsp;&nbsp;440474 |
| &nbsp;&nbsp;2026 | &nbsp;&nbsp;&nbsp;&nbsp;285680 | &nbsp;&nbsp;&nbsp;&nbsp;297303 |
| &nbsp;&nbsp;2027 | &nbsp;&nbsp;&nbsp;&nbsp;289904 | &nbsp;&nbsp;&nbsp;&nbsp;300972 |
| &nbsp;&nbsp;2028 onwards | &nbsp;&nbsp;&nbsp;&nbsp;245880 | &nbsp;&nbsp;&nbsp;&nbsp;247065 |
|  | **7668722** | **8409671** |

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33. INSURANCE COVERAGE – CONSOLIDATED

The Company's policy for insurance considers the concentration and relevance of the risks identified in its risk management program.

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|:---|:---|:---|
| <br>**Assets covered** | <br>**Coverage** | **12.31.22**<br>**Amount of coverage** |
| Operational risks | Coverage against damage to buildings, facilities, inventory, machinery and equipment, loss of profits. | **3185640** |
| Transport of goods | Coverage of goods in transit and in inventories. | **788279** |
| Civil responsability | Third party complaints. | **417416** |

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Each legal entity has its own coverages, which are not complementary.

34. TRANSACTIONS THAT DO NOT INVOLVE CASH

The following transactions did not involve cash or cash equivalents during the year ended December 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;(i) Capitalized loan interest: for the year ended December 31, 2022 amounted to R$83,303 in the Parent Company
and R$93,261 in the Consolidated (R$56,337 in the Parent Company and R$57,001 in the Consolidated during the year ended December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Addition of lease by right-of-use assets and respective lease liability: for the year ended December 31,
2022 amounted to R$865,413 in the Parent Company and R$1,178,709 in the Consolidated (R$462,234 in the Parent Company and R$686,764 for the year ended December 31, 2021).

35. EVENTS AFTER THE REPORTING PERIOD

35.1. Earthquake in Turkey

On February 6, 2023 an earthquake of significant magnitude hit Turkey and Syria. Banvit, BRF´s subsidiary in Turkey, does not have plants closer to the affected location, therefore, no impact on its operations was observed.

35.2. Decision on subjects 881 and 885 by the Federal Supreme Court

On February 8, 2023, the Brazilian Supreme Court ("STF") has unanimously decided that a final decision favorable to companies on taxes paid on a continuous basis will lose its effect if the STF subsequently judges it otherwise. The Company assessed the issue judged in this decision, which covers Social Contribution on Net Income, and informs that it regularly collects the contribution.

The Company also assessed other taxes covered by the decision rendered and there are no cases with a final and unappealable decision in favor of BRF and that have an unfavorable decision in the STF. Therefore, no impact was observed on this Financial Statement.

35.3. Prospection for the sale of the pet food operation

The Company announced on February 28, 2023 that has engaged Santander bank as financial advisor to assist on the sale of the pet food operation, which is conducted by the subsidiaries BRF Pet S.A., Mogiana Alimentos S.A., Hercosul Alimentos Ltda., Hercosul Soluções em Transportes Ltda., Hercosul Distribuição Ltda. and Hercosul International S.R.L. ("Transaction") and reported under Other segments in note 25.

The Transaction will be conducted through a competitive process which is in its initial stage.

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36. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved and the issuance authorized by the Board of Directors on February 28, 2023.

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|:---|:---|
| **BOARD OF DIRECTORS** | |
| Global President Office (Non-Independent) | Marcos Antonio Molina dos Santos |
| Vice-Chairman (Non-Independent) | Sérgio Agapito Lires Rial |
| Independent Member | Aldo Luiz Mendes |
| Independent Member | Altamir Batista Mateus da Silva |
| Independent Member | Deborah Stern Vieitas |
| Non-Independent Member | Eduardo Augusto Rocha Pocetti |
| Non-Independent Member | Márcia Aparecida Pascoal Marçal dos Santos |
| Independent Member | Pedro de Camargo Neto |
| Independent Member | Augusto Marques da Cruz Filho |
| Independent Member | Flavia Maria Bittencourt |
| **FISCAL COUNCIL** | |
| Member | Attílio Guaspari |
| Member | Marco Antônio Peixoto Simões Velozo |
| Member | Bernardo Szpigel |
| **AUDIT AND INTEGRITY COMMITTEE** | |
| Comittee Coordinator | Augusto Marques da Cruz Filho |
| Member | Deborah Stern Vieitas |
| Member | Eduardo Augusto Rocha Pocetti |
| External Member | Manoel Cordeiro Silva Filho |
| **BOARD OF EXECUTIVE OFFICERS** | |
| Global Chief Executive Officer | Miguel de Souza Gularte |
| Financial and Investor Relations Vice-President | Fábio Luis Mendes Mariano |
| People, Sustainability and Digital Vice-Presiden | Alessandro Rosa Bonorino |
| Vice President of Industrial Operations and Logistics | Artemio Listoni |
| Agribusiness and Product Quality Vice-President | Fabio Duarte Stumpf |
| International Markets and Planning Vice-President | Leonardo Campo Dallorto |
| Brazil Commercial Vice-President | Manoel Reinaldo Manzano Martins Junior |
| Marketing and New Businesses Vice-President | Marcel Sacco |

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Marcos Roberto Badollato

Accounting Director - CRC 1SP219369/O-4

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![](brfitr4q226k_002.jpg)

INDEPENDENT AUDITORS' REPORT ON INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS

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| |
|:---|
| (A free translation of the original report in Portuguese, as filed with the Brazilian Securities Commission (CVM), containing individual and consolidated financial statements prepared in accordance with accounting practices adopted in Brazil and in accordance with International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board – IASB) |
| **To the Shareholders, Board and Management of BRF S.A.**<br> *Itajaí - SC* |
| &nbsp;&nbsp;**Opinion** |
| We have audited the individual and consolidated financial statements of BRF S.A. (the Company), respectively referred to as parent company and consolidated, which comprise the statement of financial position as of December 31, 2022 and the statements of income (loss), comprehensive income (loss), changes in equity and cash flows for the year then ended, and the notes, comprising the significant accounting policies and other explanatory information.<br> In our opinion, the accompanying financial statements present fairly, in all material respects, the individual and consolidated financial position of BRF S.A. as of December 31, 2022, and its individual and consolidated financial performance and its cash flows for the year then ended, in accordance with accounting practices adopted in Brazil and with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). |
| &nbsp;&nbsp;**Basis for opinion** |
| We conducted our audit in accordance with the Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the "Auditors' responsibilities for the audit of the individual and consolidated financial statements" section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical requirements included in the Brazilian Accountant's Code of Professional Ethics and in the professional standards issued by the Brazilian Federal Accounting Council, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| &nbsp;&nbsp;**Key audit matters** |
| The key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole, and in forming our opinion on these individual and consolidated financial statements and, therefore, we do not provide a separate opinion on these matters.<br>|

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|:---|:---|
| &nbsp;&nbsp;**Recoverability of deferred tax assets - income tax and social contribution** | &nbsp;&nbsp;**Recoverability of deferred tax assets - income tax and social contribution** |
| See notes 3.9 and 10 to the individual and consolidated financial statements | See notes 3.9 and 10 to the individual and consolidated financial statements |
| **Key Audit Matter** | **How the matter was addressed in the audit** |
| &nbsp;&nbsp; The Company has deferred tax assets on income tax and social contribution relating to accumulated tax losses, negative basis of social contribution and temporary differences. Such balances are recognized to the extent that it is probable that future taxable income will be available and against which accumulated tax losses, negative basis of social contribution and temporary differences can be realized.<br> Due to the relevance of deferred tax assets on income tax and social contribution balances and the level of uncertainty inherent to the significant assumptions, such as sales revenue and commodity costs, used in determining estimates of future taxable income, which, if changed, could impact the amount of these assets in the individual and consolidated financial statements, we have considered this matter as a key audit matter. | &nbsp;&nbsp; Our procedures included, but were not limited to:<br> - Evaluation of the design, implementation and effectiveness of key internal controls over the estimation of probable future taxable income related to the recoverability of deferred tax assets on income tax and social contribution, including controls related to the determination of assumptions and data used in the preparation and review of the business plan, budget and technical studies prepared by the Company.<br> - Evaluation, with the assistance of our corporate finance specialists, of:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) key assumptions used in estimation of future taxable income, comparing them with data available in the market; and<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sensitivity analysis regarding the assumptions used.<br> - Assessment whether the disclosures in the individual and consolidated financial statements consider all relevant information.<br> Based on the evidence obtained as a result of the procedures summarized above, we considered acceptable the measurement of the recoverability of deferred tax assets on income tax and social contribution, as well as the related disclosures made by the Company, in the context of the individual and consolidated financial statements taken as a whole, for the year ended December 31, 2022. |
| **Recoverable amount of cash-generating units that include goodwill and/or other assets with an indefinite useful life** | **Recoverable amount of cash-generating units that include goodwill and/or other assets with an indefinite useful life** |
| See notes 3.12, 3.13, 13 and 14 to the individual and consolidated financial statements | See notes 3.12, 3.13, 13 and 14 to the individual and consolidated financial statements |
| **Key Audit Matter** | **How the matter was addressed in the audit** |
| &nbsp;&nbsp; The Company has goodwill for expected future profitability and other assets with an indefinite useful life that are allocated to cash-generating units that must be annually tested for impairment.<br> The assessment of the recoverable amount of the cash-generating units to which belong goodwill and/or other assets with an indefinite useful life, incorporates uncertainties in determining estimates of future cash flows. Projections of future cash flows include significant assumptions, among others, related to sales revenue, commodity costs and discount rate.<br> Due to the relevance of the balances of goodwill and other assets with indefinite useful lives and the level of uncertainty related to the assumptions, as well as the relevance of the proper application of assumptions and data in the method of measuring the recoverable amount, we have considered this matter as a key audit matter. | &nbsp;&nbsp; Our procedures included, but were not limited to:<br> - Evaluation of the design, implementation and effectiveness of key internal controls related to the preparation and review of impairment analyzes of non-financial assets allocated to cash-generating units that include goodwill and/or other assets with an indefinite useful life.<br> - Evaluation, with the assistance of our corporate finance specialists, of:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) key assumptions used in cash flow projections, such as: sales revenue, commodity costs and discount rate, comparing them with market information; and<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mathematical accuracy of discounted cash flow projections;<br> - Assessment whether the disclosures of the individual and consolidated financial statements consider all relevant information.<br> Based on the evidence obtained as a result of the procedures summarized above, we considered that the recoverable amounts of the cash-generating units to which belong the goodwill and/or other assets with an indefinite useful life as measured by the Company, as well as the related disclosures, are acceptable in the context of the individual and consolidated financial statements taken as a whole, for the year ended December 31, 2022. |

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| &nbsp;&nbsp;**Other matters – Statements of value added** |
| The individual and consolidated statements of value added (DVA) for the year ended December 31, 2022, prepared under the responsibility of the Company's management, and presented herein as supplementary information for IFRS purposes, have been subject to audit procedures jointly performed with the audit of the Company's financial statements. In order to form our opinion, we assessed whether those statements are reconciled with the financial statements and accounting records, as applicable, and whether their format and contents are in accordance with criteria determined in the CPC 09 Technical Pronouncement - Statement of Value Added. In our opinion, the statements of value added have been fairly prepared, in all material respects, in accordance with the criteria determined by the aforementioned Technical Pronouncement, and are consistent with the individual and consolidated financial statements taken as a whole. |
| **Other information accompanying the individual and consolidated financial statements and the auditor's report** |
| Management is responsible for the other information comprising the management report.<br> Our opinion on the individual and consolidated financial statements does not cover the management report and we do not express any form of assurance conclusion on this report.<br> In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the management report and, in doing so, consider whether the management report is materially inconsistent with the financial statements or with our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement on the management report, we are required to report that fact. We have nothing to report in this regard. |
| &nbsp;&nbsp;**Responsibilities of Management and Those Charged with Governance for the Individual and Consolidated Financial Statements** |
| Management is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance with accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.<br> In preparing the individual and consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.<br> Those charged with governance are responsible for overseeing the Company and its subsidiaries' financial reporting process. |

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| &nbsp;&nbsp;**Auditors' responsibilities for the audit of the individual and consolidated financial statements** |
| &nbsp;&nbsp;&nbsp;&nbsp; Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Brazilian and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.<br> As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:<br> – Identify and assess the risks of material misstatement of the individual and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.<br> – Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and its subsidiaries internal control.<br> – Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.<br> – Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.<br> – Evaluate the overall presentation, structure and content of the individual and consolidated financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.<br> – Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the individual and consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit and, consequently, for the audit opinion.<br> We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.<br> We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.<br> From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.<br>São Paulo, February 28, 2023<br>KPMG Auditores Independentes Ltda.<br> CRC 2SP-027685/O-0 'F' SP<br> *Original report in Portuguese signed by*<br> Fabian Junqueira Sousa<br> Accountant CRC 1SP235639/O-0 |

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OPINION OF THE FISCAL COUNCIL

The Fiscal Council of BRF S.A., in fulfilling its statutory and legal duties, examined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the financial statements (Parent Company and Consolidated) for the fiscal year ended December 31, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Management Report; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the report issued without qualification by KPMG Auditores Independentes on February 28, 2023.

Based on the documents reviewed and the explanations provided, the members of the Fiscal Council, undersigned, issued the opinion that the financial statements and the management report are appropriately presented and in condition of appreciation by the Annual General Meeting.

São Paulo, February 28, 2023.

Attílio Guaspari

Chairman

Bernardo Szpigel

Fiscal Council Member

Marco Antônio Peixoto Simões Velozo

Fiscal Council Member

SUMMARIZED ANNUAL REPORT OF THE AUDIT AND INTEGRITY COMMITTEE

Summary of the Audit Committee Activities in 2022

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The current composition of the Audit and Integrity Committee ("CAI") was elected on April 6, 2022, pursuant to the meeting of the Board of Directors. The Internal By-laws of the CAI is available at the website <u>https://ri.brf-global.com</u>. The Committee ("CAI") met periodically as provided in its Internal Regulations, in ordinary and extraordinary meetings, which in the year 2022, totaled 10 meetings. The main topics of discussion are described below, which were presented and discussed with the Company's Board of Directors.

Issues discussed by the Audit and Integrity Committee

The meetings were attended, whenever required and in accordance with the Agenda, by the Global Chief Executive Officer of the Company, the Vice-Presidents, Executive Directors, Executive Managers, Internal Auditors, Independent Auditors and external advisors to enable the understanding of the processes, internal controls, risks, possible deficiencies and eventual plans for improvement, as well as issuing their recommendations to the Board of Directors and Executive Board of the Company.

The main topics discussed by the Audit and Integrity Committee were:

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| » | The Internal Audit received a "Certification of Evaluation of the Quality of the Internal Audit Department", granted by the Institute of Internal Auditors (The IIA), international independent organization which evaluates globally the quality of the internal audit activities in public and private organizations, what demonstrates the ongoing investment in an efficient structure of governance, with high ethical and transparency standards; |

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» Follow-up and supervision of the international investigations by the international authorities, specifically the Turkish Competition Authority, which closed its investigations with no sanctions or remediation measures against the Company;

» Discussion of the planning, scope and main conclusions obtained in the quarterly review ("ITR") and opinion on the issuance of the financial statements of 2022;

» Follow-up on the analysis on the internal controls of the Company with emphasis on the most critical items;

» Follow-up on the implementation of improvements indicated in the internal controls report, as well as the respective action plans of the internal areas for the correction or improvement of the issues identified;

» Discussion, approval and supervision of the work plan and budget of the Internal Audit, as well and its reviews;

» Follow-up and analysis of the outcomes of special investigations;

» Follow-up on the Internal Audit reports;

» Follow-up on the implementation of the action plans resulting from the audit reports, with emphasis on the most critical issues, reporting to the Board of Directors the most relevant ones;

» Evaluation and follow-up on the effectiveness of Internal Controls for processes mapping, key controls and indicators, as well as monitoring the action plans to avoid significant deficiencies that could be reported in the financial statements;

» Discussion and evaluation of the corporate risks map;

» Follow-up on the operation of the Transparency Hotline and on the inquiries and complaints classified as highly critical;

» Follow-up on the adoption of the Compliance policies, practices and trainings by the management and employees, pursuant the anti-corruption law requirements, as well as initiatives focused on maintenance of the 37001:2016 Certification (Anti-Bribery Management Systems);

» Follow-up of the cooperation with the authorities regarding the negotiation, which culminated in the signing, on December 28, 2022, of the Leniency Agreement between BRF and the Controladoria Geral da União ("CGU") and the Advocacia Geral da União ("AGU");

» Follow-up on the management of the conduct adjustment terms entered with regulatory bodies;

» Follow-up on the questions related to the regulatory bodies and the respective answers sent by the management;

» Discussion about the implementation of controls in the subsidiaries of the Company;

» Opinion for approval, by the Board of Directors, of the annual financial statements;

» Review and comments on the quarterly financials ("ITR");

» Evaluation and monitoring, with the management and Internal Audit, of the adequacy of the related parties' transactions executed by the Company;

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» Discussion and follow-up on the update of the Reference Form ("Formulário de Referência");

» Analysis and opinion of the proposal sent to the Board of Directors for Independent Auditors services, supervision of activities of Independent Auditing, involving the scope and work plan, insurance of their independence and of the quality of the services provided;

» Follow-up on the themes related to LGPD – General Data Protection Law and themes related to cyber security; and

» Participation of the members of the Committee in trainings, lectures, and update programs about themes related to the Committee's activities and normative acts that are in the interest of and impact the Company.

STATUTORY AUDIT AND INTEGRITY COMMITTEE OPINION

In the exercise of its legal and statutory duties, BRF's Audit Committee has examined the financial statements (Parent Company and Consolidated) for the fiscal year ended December 31, 2022, the management report and the report issued without qualification by KPMG Auditores Independentes on February 28, 2023.

There were no instances of significant divergences between the Company's management, the independent auditors and the Audit Committee with respect to the Company's Financial Statements.

Based on the examined documents and the clarifications rendered, the members of the Audit Committee, undersigned, issued the opinion that the financial statements are appropriately presented and in conditions for approval.

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São Paulo, February 28, 2023.

Augusto Marques da Cruz Filho

Coordinator

Eduardo Augusto Rocha Pocetti

Member

Deborah Sterns Vieitas

Member

Manoel Cordeiro Silva Filho

External member

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OPINION OF EXECUTIVE BOARD ON THE CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT

In compliance with the dispositions of sections V and VI of the article 25 of the CVM Instruction No. 480/09, the executive board of BRF S.A. states that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reviewed, discussed and agreed with the Company's financial statements for the fiscal year ended December
31, 2022, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reviewed, discussed and agreed with the opinions expressed in the audit report issued by KPMG Auditores
Independentes on February 22, 2022 for the Company's financial statements for the fiscal year ended December 31, 2022.

São Paulo, February 28, 2023.

Miguel Gularte

Global Chief Executive Officer

Fabio Luis Mendes Mariano

Financial and Investor Relations Vice-President

Alessandro Rosa Bonorino

People, Sustainability and Digital Vice-President

Artemio Listoni

Vice President of Industrial Operations and Logistics

Fábio Duarte Stumpf

Agribusiness and Product Quality Vice-President

Leonardo Campo Dallorto

International Markets and Planning Vice-President

Manoel Reinaldo Manzano Martins Junior

Brazil Commercial Vice-President

Marcel Sacco

Marketing and New Businesses Vice-President

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