EX-99.1 2 ex99-1.htm EX-99.1

INDEX

STATEMENT OF FINANCIAL POSITION | 4
STATEMENT OF INCOME (LOSS) | 5
STATEMENT OF COMPREHENSIVE INCOME (LOSS) | 6
STATEMENT OF CHANGES IN EQUITY | 7
STATEMENT OF CASH FLOWS | 8
STATEMENT OF VALUE ADDED | 9
MANAGEMENT REPORT | 10

1. | COMPANY’S OPERATIONS | 29
2 | BASIS OF PREPARATION AND PRESENTATION OF INTERIM FINANCIAL INFORMATION | 34
3 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 34
4 | CASH AND CASH EQUIVALENTS | 35
5 | MARKETABLE SECURITIES | 35
6 | TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | 36
7 | INVENTORIES | 37
8 | BIOLOGICAL ASSETS | 38
9 | RECOVERABLE TAXES | 40
10 | DEFERRED INCOME TAXES | 42
11 | JUDICIAL DEPOSITS | 44
12 | INVESTMENTS | 45
13 | PROPERTY, PLANT AND EQUIPMENT, NET | 46
14 | INTANGIBLE ASSETS | 48
15 | LOANS AND BORROWINGS | 50
16 | TRADE ACCOUNTS PAYABLE | 34
17 | SUPPLY CHAIN FINANCE | 53
18 | LEASES | 53
19 | SHARE-BASED PAYMENT | 57
20 | EMPLOYEES BENEFITS PLANS | 57
21 | PROVISION FOR TAX, CIVIL AND LABOR RISKS | 58
22 | EQUITY | 59
23 | EARNINGS (LOSS) PER SHARE | 61
24 | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 61
25 | SEGMENT INFORMATION | 75
26 | NET SALES | 77
27 | OTHER OPERATING INCOME (EXPENSES), NET | 77
28 | FINANCIAL INCOME (EXPENSES), NET | 78

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 2

29 | STATEMENT OF INCOME BY NATURE | 79
30 | RELATED PARTIES | 79
31 | COMMITMENTS | 82
32 | TRANSACTIONS THAT DO NOT INVOLVE CASH | 82
33 | EVENTS AFTER THE REPORTING PERIOD | 83
34 | APPROVAL OF THE INTERIM FINANCIAL INFORMATION | 84

COMENTARY ABOUT THE BEHAVIOR OF THE COMPANY’S PROJECTIONS | 85
BREAKDOWN OF THE CAPITAL BY OWNER (NOT REVIEWED) | 85
INDEPENDENT AUDITORS’ REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION | 86
OPINION OF THE AUDIT AND INTEGRITY COMMITTEE | 87
STATEMENT OF EXECUTIVE BOARD ON THE INTERIM FINANCIAL INFORMATION AND INDEPENDENT AUDITOR’S REPORT | 88

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 3

STATEMENT OF FINANCIAL POSITION

|  |  | Parent company |  | Consolidated |  |  |  |  | Parent company |  | Consolidated
ASSETS | Note |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | LIABILITIES | Note |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
CURRENT ASSETS |  |  |  |  |  |  |  |  |  |  | CURRENT LIABILITIES |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 4 |  | 2,651,573 |  | 3,876,139 |  | 6,941,842 |  | 7,576,625 |  | Loans and borrowings | 15 |  | 2,182,461 |  | 811,919 |  | 2,530,352 |  | 1,059,984
Marketable securities | 5 |  | 315,036 |  | 312,515 |  | 316,410 |  | 314,158 |  | Trade accounts payable | 16 |  | 8,826,451 |  | 8,156,231 |  | 9,751,391 |  | 8,996,206
Trade and other receivables | 6 |  | 6,470,799 |  | 5,254,064 |  | 2,996,513 |  | 4,136,421 |  | Supply chain finance | 17 |  | 1,450,608 |  | 1,452,637 |  | 1,450,608 |  | 1,452,637
Inventories | 7 |  | 6,316,497 |  | 5,161,261 |  | 7,954,637 |  | 6,802,759 |  | Lease liability | 18 |  | 374,773 |  | 302,946 |  | 480,526 |  | 383,162
Biological assets | 8 |  | 2,478,574 |  | 2,044,288 |  | 2,559,876 |  | 2,129,010 |  | Payroll, related charges and employee profit sharing |  |  | 826,692 |  | 860,836 |  | 863,738 |  | 940,816
Recoverable taxes | 9 |  | 774,361 |  | 812,338 |  | 832,782 |  | 899,120 |  | Taxes payable |  |  | 515,950 |  | 268,347 |  | 638,241 |  | 395,630
Recoverable income taxes | 9 |  | 39,926 |  | 28,888 |  | 77,240 |  | 43,840 |  | Derivative financial instruments | 24 |  | 129,613 |  | 378,543 |  | 130,197 |  | 384,969
Derivative financial instruments | 24 |  | 272,881 |  | 361,315 |  | 276,137 |  | 377,756 |  | Provision for tax, civil and labor risks | 21 |  | 884,305 |  | 860,889 |  | 887,520 |  | 865,338
Restricted cash |  |  | 24,245 |  | 1 |  | 24,245 |  | 1 |  | Employee benefits | 20 |  | 114,938 |  | 114,938 |  | 124,508 |  | 125,230
Assets held for sale |  |  | 4,956 |  | 15,637 |  | 20,694 |  | 186,025 |  | Advances from related parties | 30 |  | 9,981,649 |  | 8,960,394 |  | - |  | -
Other current assets |  |  | 389,109 |  | 348,722 |  | 597,398 |  | 446,269 |  | Liabilities directly associated with assets held for sale |  |  | - |  | - |  | - |  | 21,718
|  |  |  |  |  |  |  |  |  |  | Other current liabilities |  |  | 237,046 |  | 335,137 |  | 563,383 |  | 814,638
Total current assets |  |  | 19,737,957 |  | 18,215,168 |  | 22,597,774 |  | 22,911,984 |  | Total current liabilities |  |  | 25,524,486 |  | 22,502,817 |  | 17,420,464 |  | 15,440,328
NON-CURRENT ASSETS |  |  |  |  |  |  |  |  |  |  | NON-CURRENT LIABILITIES |  |  |  |  |  |  |  |  |
LONG-TERM RECEIVALBLES |  |  |  |  |  |  |  |  |  |  | Loans and borrowings | 15 |  | 17,253,656 |  | 18,498,335 |  | 20,024,831 |  | 21,344,442
Marketable securities | 5 |  | 14,911 |  | 15,044 |  | 333,034 |  | 344,577 |  | Trade accounts payable | 16 |  | 13,198 |  | 13,781 |  | 13,198 |  | 13,781
Trade and other receivables | 6 |  | 42,765 |  | 49,569 |  | 43,069 |  | 49,864 |  | Lease liability | 18 |  | 1,822,879 |  | 1,965,748 |  | 2,028,605 |  | 2,153,519
Recoverable taxes | 9 |  | 4,877,222 |  | 4,868,219 |  | 4,877,232 |  | 4,868,198 |  | Taxes payable |  |  | 135,350 |  | 141,252 |  | 135,350 |  | 141,252
Recoverable income taxes | 9 |  | 54,293 |  | 54,123 |  | 69,164 |  | 54,859 |  | Provision for tax, civil and labor risks | 21 |  | 634,225 |  | 837,106 |  | 634,449 |  | 837,382
Deferred income taxes | 10 |  | 2,326,180 |  | 2,068,769 |  | 2,361,035 |  | 2,109,064 |  | Deferred income taxes | 10 |  | - |  | - |  | 30,219 |  | 26,527
Judicial deposits | 11 |  | 543,839 |  | 553,276 |  | 543,893 |  | 553,341 |  | Liabilities with related parties | 30 |  | 43,194 |  | 41,892 |  | - |  | -
Biological assets | 8 |  | 1,249,007 |  | 1,154,726 |  | 1,314,660 |  | 1,221,749 |  | Employee benefits | 20 |  | 541,824 |  | 521,855 |  | 669,657 |  | 651,325
Receivables from related parties | 30 |  | 309 |  | 315 |  | - |  | - |  | Derivative financial instruments | 24 |  | 7,655 |  | 727 |  | 7,655 |  | 727
Derivative financial instruments | 24 |  | 9,894 |  | 234 |  | 9,894 |  | 234 |  | Other non-current liabilities |  |  | 251,846 |  | 249,691 |  | 242,421 |  | 242,089
Restricted cash |  |  | 1 |  | 24,357 |  | 1 |  | 24,357 |  |  |  |  |  |  |  |  |  |  |
Other non-current assets |  |  | 64,067 |  | 77,829 |  | 69,781 |  | 82,123 |  |  |  |  |  |  |  |  |  |  |
Total long-term receivables |  |  | 9,182,488 |  | 8,866,461 |  | 9,621,763 |  | 9,308,366 |  | Total non-current liabilities |  |  | 20,703,827 |  | 22,270,387 |  | 23,786,385 |  | 25,411,044
|  |  |  |  |  |  |  |  |  |  | EQUITY | 22 |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Capital |  |  | 12,460,471 |  | 12,460,471 |  | 12,460,471 |  | 12,460,471
|  |  |  |  |  |  |  |  |  |  | Capital reserves |  |  | 141,834 |  | 141,834 |  | 141,834 |  | 141,834
|  |  |  |  |  |  |  |  |  |  | Other equity transactions |  |  | (87,028) |  | 246 |  | (87,028) |  | 246
Investments | 12 |  | 11,159,568 |  | 11,922,325 |  | 9,401 |  | 8,874 |  | Accumulated losses |  |  | (2,780,682) |  | (2,594,028) |  | (2,780,682) |  | (2,594,028)
Property, plant and equipment, net | 13 |  | 11,276,956 |  | 11,168,558 |  | 12,336,681 |  | 12,215,580 |  | Treasury shares |  |  | (106,196) |  | (123,938) |  | (106,196) |  | (123,938)
Intangible assets | 14 |  | 3,208,378 |  | 3,186,476 |  | 5,052,273 |  | 5,220,102 |  | Other comprehensive loss |  |  | (1,291,365) |  | (1,298,801) |  | (1,291,365) |  | (1,298,801)
|  |  |  |  |  |  |  |  |  |  | Attributable to controlling shareholders |  |  | 8,337,034 |  | 8,585,784 |  | 8,337,034 |  | 8,585,784
|  |  |  |  |  |  |  |  |  |  | Non-controlling interests |  |  | - |  | - |  | 74,009 |  | 227,750
Total non-current assets |  |  | 34,827,390 |  | 35,143,820 |  | 27,020,118 |  | 26,752,922 |  | Total equity |  |  | 8,337,034 |  | 8,585,784 |  | 8,411,043 |  | 8,813,534
TOTAL ASSETS |  |  | 54,565,347 |  | 53,358,988 |  | 49,617,892 |  | 49,664,906 |  | TOTAL LIABILITIES AND EQUITY |  |  | 54,565,347 |  | 53,358,988 |  | 49,617,892 |  | 49,664,906

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 4

STATEMENT OF INCOME (LOSS)

|  |  | Parent company |  | Consolidated
|  |  |  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Note |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
CONTINUING OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NET SALES | 26 |  | 10,231,317 |  | 19,522,706 |  | 7,063,409 |  | 14,512,454 |  | 11,636,901 |  | 22,228,878 |  | 9,103,926 |  | 18,052,991
Cost of sales | 29 |  | (8,465,859) |  | (15,670,856) |  | (6,182,886) |  | (12,011,795) |  | (9,410,919) |  | (17,807,936) |  | (7,125,034) |  | (13,821,122)
GROSS PROFIT |  |  | 1,765,458 |  | 3,851,850 |  | 880,523 |  | 2,500,659 |  | 2,225,982 |  | 4,420,942 |  | 1,978,892 |  | 4,231,869
OPERATING INCOME (EXPENSES) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling expenses | 29 |  | (1,244,998) |  | (2,348,974) |  | (1,057,781) |  | (2,090,348) |  | (1,544,112) |  | (2,977,138) |  | (1,360,889) |  | (2,645,223)
General and administrative expenses | 29 |  | (127,173) |  | (225,853) |  | (122,609) |  | (209,890) |  | (192,275) |  | (352,259) |  | (190,465) |  | (333,025)
Impairment loss on trade receivables | 6 |  | (3,160) |  | (5,716) |  | 22,024 |  | (9,078) |  | (5,072) |  | (8,492) |  | 21,096 |  | (11,755)
Other operating income (expenses), net | 27 |  | 66,379 |  | 101,389 |  | 147,221 |  | (84,110) |  | 95,799 |  | 125,180 |  | 138,553 |  | (100,000)
Income (loss) from associates and joint ventures | 12 |  | (1,671,573) |  | (694,847) |  | 2,086,260 |  | 6,073,512 |  | - |  | - |  | - |  | -
INCOME (LOSS) BEFORE FINANCIAL RESULTS AND INCOME TAXES |  | (1,215,067) |  | 677,849 |  | 1,955,638 |  | 6,180,745 |  | 580,322 |  | 1,208,233 |  | 587,187 |  | 1,141,866
Financial income |  |  | 66,570 |  | 175,441 |  | 66,332 |  | 173,109 |  | 83,824 |  | 206,477 |  | 81,833 |  | 194,711
Financial expenses |  |  | (766,120) |  | (1,477,049) |  | (577,883) |  | (1,192,623) |  | (797,274) |  | (1,423,689) |  | (166,563) |  | (735,913)
Foreign exchange and monetary variations |  |  | 1,722,830 |  | 418,139 |  | (1,037,987) |  | (4,851,516) |  | (45,928) |  | (144,806) |  | (105,573) |  | (255,570)
FINANCIAL INCOME (EXPENSES), NET | 28 |  | 1,023,280 |  | (883,469) |  | (1,549,538) |  | (5,871,030) |  | (759,378) |  | (1,362,018) |  | (190,303) |  | (796,772)
INCOME (LOSS) BEFORE TAXES |  |  | (191,787) |  | (205,620) |  | 406,100 |  | 309,715 |  | (179,056) |  | (153,785) |  | 396,884 |  | 345,094
Income taxes | 10 |  | (11,069) |  | 27,206 |  | (102,230) |  | (51,766) |  | (19,503) |  | (22,313) |  | (89,755) |  | (76,197)
INCOME (LOSS) FROM CONTINUING OPERATIONS |  |  | (202,856) |  | (178,414) |  | 303,870 |  | 257,949 |  | (198,559) |  | (176,098) |  | 307,129 |  | 268,897
LOSS FROM DISCONTINUED OPERATIONS |  |  | (41,286) |  | (41,286) |  | - |  | - |  | (41,286) |  | (41,286) |  | - |  | -
INCOME (LOSS) FOR THE PERIOD |  |  | (244,142) |  | (219,700) |  | 303,870 |  | 257,949 |  | (239,845) |  | (217,384) |  | 307,129 |  | 268,897
Net Income (loss) from Continuing Operation Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | (202,856) |  | (178,414) |  | 303,870 |  | 257,949 |  | (202,856) |  | (178,414) |  | 303,870 |  | 257,949
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | 4,297 |  | 2,316 |  | 3,259 |  | 10,948
|  |  | (202,856) |  | (178,414) |  | 303,870 |  | 257,949 |  | (198,559) |  | (176,098) |  | 307,129 |  | 268,897
Net Loss From Discontinued Operations Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | (41,286) |  | (41,286) |  | - |  | - |  | (41,286) |  | (41,286) |  | - |  | -
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
|  |  | (41,286) |  | (41,286) |  | - |  | - |  | (41,286) |  | (41,286) |  | - |  | -
INCOME (LOSS) PER SHARE FROM CONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding - basic |  |  |  |  |  |  |  |  |  |  | 807,934,252 |  | 807,820,708 |  | 809,612,517 |  | 810,672,698
Income (loss) per share - basic | 23 |  |  |  |  |  |  |  |  |  | (0.25) |  | (0.22) |  | 0.38 |  | 0.32
Weighted average shares outstanding - diluted |  |  |  |  |  |  |  |  |  |  | 807,934,252 |  | 807,820,708 |  | 809,875,209 |  | 810,935,390
Income (loss) per share - diluted | 23 |  |  |  |  |  |  |  |  |  | (0.25) |  | (0.22) |  | 0.38 |  | 0.32
LOSSES PER SHARE FROM DISCONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding - basic |  |  |  |  |  |  |  |  |  |  | 807,934,252 |  | 807,820,708 |  | - |  | -
Losses per share - basic | 23 |  |  |  |  |  |  |  |  |  | (0.05) |  | (0.05) |  | - |  | -
Weighted average shares outstanding - diluted |  |  |  |  |  |  |  |  |  |  | 807,934,252 |  | 807,820,708 |  | - |  | -
Losses per share - diluted | 23 |  |  |  |  |  |  |  |  |  | (0.05) |  | (0.05) |  | - |  | -

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 5

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

|  |  | Parent company |  | Consolidated
|  |  |  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Note |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Income (loss) for the period |  |  | (244,142) |  | (219,700) |  | 303,870 |  | 257,949 |  | (239,845) |  | (217,384) |  | 307,129 |  | 268,897
Other comprehensive income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss on foreign currency translation of foreign operations |  |  | (48,326) |  | (96,637) |  | (46,972) |  | (148,522) |  | (59,221) |  | (139,581) |  | (63,994) |  | (105,697)
Gain (loss) on net investment hedge |  |  | 170,638 |  | 45,877 |  | (69,236) |  | (342,111) |  | 170,638 |  | 45,877 |  | (69,236) |  | (342,111)
Gain (loss) on cash flow hedge | 24 |  | 152,584 |  | 57,113 |  | 268,028 |  | (741,483) |  | 152,584 |  | 57,113 |  | 268,028 |  | (741,483)
Gain (loss) on debt investments measured at FVTOCI (1) | 5 |  | - |  | - |  | 2,703 |  | (170) |  | - |  | - |  | 2,703 |  | (170)
Net other comprehensive income (loss), to be reclassified to the statement of income in subsequent periods |  |  | 274,896 |  | 6,353 |  | 154,523 |  | (1,232,286) |  | 264,001 |  | (36,591) |  | 137,501 |  | (1,189,461)
Gain on equity investments measured at FVTOCI (1) | 5 |  | - |  | 26,030 |  | 4,636 |  | 5,003 |  | - |  | 26,030 |  | 4,636 |  | 5,003
Actuarial gains on pension and post-employment plans | 20 |  | 4,199 |  | 8,099 |  | 6,647 |  | 13,035 |  | 4,181 |  | 8,035 |  | 6,623 |  | 12,964
Net other comprehensive income, with no impact into subsequent statement of income |  |  | 4,199 |  | 34,129 |  | 11,283 |  | 18,038 |  | 4,181 |  | 34,065 |  | 11,259 |  | 17,967
Comprehensive income (loss), net of taxes |  |  | 34,953 |  | (179,218) |  | 469,676 |  | (956,299) |  | 28,337 |  | (219,910) |  | 455,889 |  | (902,597)
Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | 34,953 |  | (179,218) |  | 469,676 |  | (956,299) |  | 34,953 |  | (179,218) |  | 469,676 |  | (956,299)
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | (6,616) |  | (40,692) |  | (13,787) |  | 53,702
|  |  | 34,953 |  | (179,218) |  | 469,676 |  | (956,299) |  | 28,337 |  | (219,910) |  | 455,889 |  | (902,597)

| (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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 6

STATEMENT OF CHANGES IN EQUITY

|  |  | Attributed to controlling shareholders
|  |  |  |  |  |  |  |  |  |  | Other comprehensive income (loss) |  |  |  |  |  |  |  |
|  |  | Capital |  | Capital reserves | Other equity transactions (4) |  | Treasury shares |  | Accumulated foreign currency translation adjustments |  | Gains (losses) on marketable securities at FVTOCI (2) |  | Gains (losses) on cash flow hedge |  | Actuarial gains (losses) |  | Retained losses |  | Total equity |  | Non-controlling interest |  | Total shareholders' equity (consolidated)
BALANCES AT DECEMBER 31, 2019 |  |  | 12,460,471 |  | 141,834 |  | 51,011 |  | (38,239) |  | (193,379) |  | 4,454 |  | (356,721) |  | (176,823) |  | (3,996,985) |  | 7,895,623 |  | 252,726 |  | 8,148,349
Comprehensive income (loss) (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains (losses) on foreign currency translation of foreign operations |  |  | - |  | - |  | - |  | - |  | (207,734) |  | - |  | - |  | - |  | - |  | (207,734) |  | 28,308 |  | (179,426)
Loss on net investment hedge |  |  | - |  | - |  | - |  | - |  | (277,856) |  | - |  | - |  | - |  | - |  | (277,856) |  | - |  | (277,856)
Unrealized gains on marketable securities at FVTOCI (2) |  |  | - |  | - |  | - |  | - |  | - |  | 2,562 |  | - |  | - |  | - |  | 2,562 |  | - |  | 2,562
Unrealized losses in cash flow hedge |  |  | - |  | - |  | - |  | - |  | - |  | - |  | (81,500) |  | - |  | - |  | (81,500) |  | - |  | (81,500)
Actuarial losses on pension and post-employment plans |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 7,589 |  | - |  | 7,589 |  | (468) |  | 7,121
Income for the year |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 1,383,564 |  | 1,383,564 |  | 6,505 |  | 1,390,069
SUB-TOTAL COMPREHENSIVE INCOME (LOSS) |  |  | - |  | - |  | - |  | - |  | (485,590) |  | 2,562 |  | (81,500) |  | 7,589 |  | 1,383,564 |  | 826,625 |  | 34,345 |  | 860,970
Employee benefits remeasurement - defined benefit |  |  | - |  | - |  |  |  | - |  | - |  | - |  | - |  | (19,393) |  | 19,393 |  | - |  | - |  | -
Appropriation of income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (4,458) |  | (4,458)
Share-based payments |  |  | - |  | - |  | 180 |  | 20,371 |  | - |  | - |  | - |  | - |  | - |  | 20,551 |  | - |  | 20,551
Acquisition of non-controlling interests |  |  | - |  | - |  | (50,945) |  | - |  | - |  | - |  | - |  | - |  | - |  | (50,945) |  | (54,863) |  | (105,808)
Acquisition of treasury shares |  |  | - |  | - |  | - |  | (106,070) |  | - |  | - |  | - |  | - |  | - |  | (106,070) |  | - |  | (106,070)
BALANCES AT DECEMBER 31, 2020 |  |  | 12,460,471 |  | 141,834 |  | 246 |  | (123,938) |  | (678,969) |  | 7,016 |  | (438,221) |  | (188,627) |  | (2,594,028) |  | 8,585,784 |  | 227,750 |  | 8,813,534
Comprehensive income (loss) (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Losses on foreign currency translation of foreign operations |  |  | - |  | - |  | - |  | - |  | (96,637) |  | - |  | - |  | - |  | - |  | (96,637) |  | (42,944) |  | (139,581)
Gain on net investment hedge |  |  | - |  | - |  | - |  | - |  | 45,877 |  | - |  | - |  | - |  | - |  | 45,877 |  | - |  | 45,877
Unrealized gains on marketable securities at FVTOCI (2) |  |  | - |  | - |  | - |  | - |  | - |  | 26,030 |  | - |  | - |  | - |  | 26,030 |  | - |  | 26,030
Unrealized gains in cash flow hedge |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 57,113 |  | - |  | - |  | 57,113 |  | - |  | 57,113
Actuarial gains (losses) on pension and post-employment plans |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 8,099 |  | - |  | 8,099 |  | (64) |  | 8,035
Income (loss) for the period |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (219,700) |  | (219,700) |  | 2,316 |  | (217,384)
SUB-TOTAL COMPREHENSIVE INCOME (LOSS) |  |  | - |  | - |  | - |  | - |  | (50,760) |  | 26,030 |  | 57,113 |  | 8,099 |  | (219,700) |  | (179,218) |  | (40,692) |  | (219,910)
Realized gain in marketable securities at FVTOCI (2) |  |  | - |  | - |  |  |  | - |  | - |  | (33,046) |  | - |  | - |  | 33,046 |  | - |  | - |  | -
Share-based payments |  |  | - |  | - |  | (7,601) |  | 17,742 |  | - |  | - |  | - |  | - |  | - |  | 10,141 |  | - |  | 10,141
Acquisition of non-controlling interests (3) |  |  | - |  | - |  | (79,673) |  | - |  | - |  | - |  | - |  | - |  | - |  | (79,673) |  | (113,049) |  | (192,722)
BALANCES AT JUNE 30, 2021 |  |  | 12,460,471 |  | 141,834 |  | (87,028) |  | (106,196) |  | (729,729) |  | - |  | (381,108) |  | (180,528) |  | (2,780,682) |  | 8,337,034 |  | 74,009 |  | 8,411,043

| (1) | All changes in other comprehensive income are presented net of taxes.

| (2) | FVTOCI: Fair Value Through Other Comprehensive Income.

| (3) | Acquisition of remaining participation in the subsidiary AFC (note 1.1).

| (4) | Comparative period was restated as described in note 22.2.

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 7

STATEMENT OF CASH FLOWS

|  | Parent company |  | Consolidated
|  | 2021 |  | 2020 |  | 2021 |  | 2020
|  |  |  | Restated (4) |  |  |  | Restated (4)
|  | Jan - Jun |  | Jan - Jun |  | Jan - Jun |  | Jan - Jun
OPERATING ACTIVITIES |  |  |  |  |  |  |  |
Income (loss) from continuing operations |  | (178,414) |  | 257,949 |  | (176,098) |  | 268,897
Adjustments for: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 692,540 |  | 610,390 |  | 889,894 |  | 741,053
Depreciation and depletion of biological assets |  | 441,867 |  | 377,490 |  | 485,564 |  | 420,747
Result on disposal of property, plant and equipments and investment |  | (7,304) |  | 2,380 |  | (36,015) |  | 7,409
Write-down of inventories to net realizable value |  | 26,920 |  | 40,021 |  | 32,974 |  | 63,180
Provision for tax, civil and labor risks |  | (11,388) |  | 181,851 |  | (11,876) |  | 182,108
Income from investments under the equity method |  | 694,847 |  | (6,073,512) |  | - |  | -
Financial results, net |  | 883,469 |  | 5,871,030 |  | 1,362,018 |  | 796,772
Tax recoveries and gains in tax lawsuits |  | (54,392) |  | (224,820) |  | (54,392) |  | (224,820)
Deferred income tax |  | (283,296) |  | 51,766 |  | (293,328) |  | 37,865
Employee profit sharing |  | 14,526 |  | 121,399 |  | 29,055 |  | 117,992
Other provisions |  | 4,007 |  | 251,911 |  | 6,780 |  | 259,024
|  | 2,223,382 |  | 1,467,855 |  | 2,234,576 |  | 2,670,227
Trade accounts receivable |  | (1,187,604) |  | (395,989) |  | 1,068,291 |  | 643,436
Inventories |  | (1,182,156) |  | (701,669) |  | (1,301,476) |  | (1,223,384)
Biological assets - current |  | (434,286) |  | (258,755) |  | (448,702) |  | (268,631)
Trade accounts payable |  | 230,502 |  | 286,358 |  | 300,223 |  | 522,587
Supply chain finance |  | (3,074) |  | 140,750 |  | (3,074) |  | 140,750
Cash generated (applied) by operating activities |  | (353,236) |  | 538,550 |  | 1,849,838 |  | 2,484,985
Investments in securities at FVTPL (1) |  | (23,894) |  | 2,800 |  | (23,894) |  | -
Redemptions of securities at FVTPL (1) |  | 28,098 |  | 99,264 |  | 28,339 |  | 102,172
Interest received |  | 37,068 |  | 50,925 |  | 38,254 |  | 57,176
Dividends and interest on shareholders' equity received |  | - |  | 196 |  | - |  | -
Payment of tax, civil and labor provisions |  | (198,301) |  | (129,746) |  | (198,301) |  | (129,748)
Derivative financial instruments |  | (525,012) |  | 1,137,007 |  | (511,333) |  | 1,141,152
Payment of income taxes |  | - |  | - |  | - |  | (146)
Other operating assets and liabilities (2) |  | 1,374,315 |  | 947,290 |  | 27,958 |  | 450,922
Net cash provided by operating activities |  | 339,038 |  | 2,646,286 |  | 1,210,861 |  | 4,106,513
INVESTING ACTIVITIES |  |  |  |  |  |  |  |
Redemptions of securities at amortized cost |  | - |  | - |  | 166,112 |  | -
Redemptions of securities at FVTOCI (3) |  | - |  | - |  | 86,059 |  | -
Redemption of restricted cash |  | 400 |  | 285,622 |  | 400 |  | 285,622
Additions to property, plant and equipment |  | (544,406) |  | (274,851) |  | (602,926) |  | (285,323)
Additions to biological assets - non-current |  | (533,242) |  | (423,203) |  | (588,040) |  | (470,300)
Proceeds from disposals of property, plant, equipments and investment |  | 8,500 |  | 65,717 |  | 8,500 |  | 65,717
Additions to intangible assets |  | (105,909) |  | (64,428) |  | (101,106) |  | (59,067)
Business combination, net of cash |  | - |  | - |  | (131,212) |  | -
Sale of participation in subsidiaries with loss of control |  | - |  | - |  | 132,951 |  | 38,546
Acquisition of participation in joint ventures and subsidiaries |  | (528) |  | (547) |  | (528) |  | (547)
Capital increase in associates |  | (58,998) |  | (5,000) |  | - |  | -
Net cash used in investing activities |  | (1,234,183) |  | (416,690) |  | (1,029,790) |  | (425,352)
Net cash provided by investing activities from discontinued operations |  | - |  | - |  | (17,550) |  | -
Net cash used in investing activities |  | (1,234,183) |  | (416,690) |  | (1,047,340) |  | (425,352)
FINANCING ACTIVITIES |  |  |  |  |  |  |  |
Proceeds from debt issuance |  | 1,011,355 |  | 2,855,552 |  | 1,264,223 |  | 3,357,785
Repayment of debt |  | (511,602) |  | (1,381,422) |  | (539,359) |  | (1,639,768)
Payment of interest |  | (553,110) |  | (474,804) |  | (646,355) |  | (553,441)
Treasury shares acquisition |  | - |  | (106,070) |  | - |  | (106,070)
Acquisition of non-controlling interests |  | - |  | - |  | (238,421) |  | (100,390)
Payment of lease liabilities |  | (281,251) |  | (221,046) |  | (373,512) |  | (268,264)
Net cash provided by (used in) financing activities |  | (334,608) |  | 672,210 |  | (533,424) |  | 689,852
EFFECT OF EXCHANGE RATE VARIATION ON CASH AND CASH EQUIVALENTS |  | 5,187 |  | 198,521 |  | (264,880) |  | 1,062,477
Net increase (decrease) in cash and cash equivalents |  | (1,224,566) |  | 3,100,327 |  | (634,783) |  | 5,433,490
Balance at the beginning of the period |  | 3,876,139 |  | 1,368,980 |  | 7,576,625 |  | 4,237,785
Balance at the end of the period |  | 2,651,573 |  | 4,469,307 |  | 6,941,842 |  | 9,671,275

| (1) | FVTPL: Fair Value Through Profit and Loss.

| (2) | In the Parent company, contemplates mainly the effects of prepayments of exports with subsidiaries in the amount of R$(738,485) in the six-month period ended on June 30, 2021 (R$3,767,176 in the same period of the previous year).

| (3) | FVTOCI: Fair Value Through Other Comprehensive Income.

| (4) | Restated according to reclassifications described in note 3.

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 8

STATEMENT OF VALUE ADDED

|  | Parent company |  | Consolidated
|  | 2021 |  | 2020 |  | 2021 |  | 2020
|  | Jan - Jun |  | Jan - Jun |  | Jan - Jun |  | Jan - Jun
1 - REVENUES |  | 22,291,765 |  | 16,618,793 |  | 25,074,739 |  | 20,130,286
Sales of goods and products |  | 21,645,303 |  | 16,317,046 |  | 24,355,190 |  | 19,859,521
Other income |  | 118,276 |  | 38,180 |  | 156,595 |  | 18,082
Revenue related to construction of own assets |  | 533,902 |  | 272,645 |  | 571,446 |  | 264,438
Expected credit losses |  | (5,716) |  | (9,078) |  | (8,492) |  | (11,755)
2 - SUPPLIES ACQUIRED FROM THIRD PARTIES |  | (14,819,852) |  | (10,954,133) |  | (17,247,444) |  | (12,966,408)
Costs of goods sold |  | (12,610,883) |  | (9,226,376) |  | (14,607,519) |  | (10,887,673)
Materials, energy, third parties services and other |  | (2,223,811) |  | (1,737,674) |  | (2,659,600) |  | (2,077,276)
Reversal for inventories losses |  | 14,842 |  | 9,917 |  | 19,675 |  | (1,459)
3 - GROSS ADDED VALUE (1-2) |  | 7,471,913 |  | 5,664,660 |  | 7,827,295 |  | 7,163,878
4 - DEPRECIATION AND AMORTIZATION |  | (1,134,407) |  | (987,880) |  | (1,375,458) |  | (1,161,800)
5 - NET ADDED VALUE (3-4) |  | 6,337,506 |  | 4,676,780 |  | 6,451,837 |  | 6,002,078
6 - RECEIVED FROM THIRD PARTIES |  | (521,766) |  | 6,245,730 |  | 204,117 |  | 194,653
Income from associates and joint ventures |  | (694,847) |  | 6,073,512 |  | - |  | -
Financial income |  | 175,441 |  | 173,109 |  | 206,477 |  | 194,711
Others |  | (2,360) |  | (891) |  | (2,360) |  | (58)
7 - ADDED VALUE TO BE DISTRIBUTED (5+6) |  | 5,815,740 |  | 10,922,510 |  | 6,655,954 |  | 6,196,731
8 - DISTRIBUTION OF ADDED VALUE |  | 5,815,740 |  | 10,922,510 |  | 6,655,954 |  | 6,196,731
Payroll |  | 2,524,199 |  | 2,504,040 |  | 2,822,070 |  | 2,743,528
Salaries |  | 1,799,065 |  | 1,829,075 |  | 2,032,779 |  | 2,021,894
Benefits |  | 595,083 |  | 544,184 |  | 649,805 |  | 582,713
Government severance indemnity fund for employees |  | 130,051 |  | 130,781 |  | 139,486 |  | 138,921
Taxes, Fees and Contributions |  | 2,322,184 |  | 2,045,361 |  | 2,389,656 |  | 2,085,446
Federal |  | 920,221 |  | 850,068 |  | 984,795 |  | 886,296
State |  | 1,380,576 |  | 1,174,975 |  | 1,380,472 |  | 1,174,972
Municipal |  | 21,387 |  | 20,318 |  | 24,389 |  | 24,178
Capital Remuneration from Third Parties |  | 1,147,771 |  | 6,115,160 |  | 1,620,326 |  | 1,098,860
Interests, including exchange variation |  | 1,082,252 |  | 6,052,527 |  | 1,591,837 |  | 999,871
Rents |  | 65,519 |  | 62,633 |  | 28,489 |  | 98,989
Interest on Own-Capital |  | (178,414) |  | 257,949 |  | (176,098) |  | 268,897
Income (loss) for the period from continuing operations |  | (178,414) |  | 257,949 |  | (178,414) |  | 257,949
Non-controlling interest |  | - |  | - |  | 2,316 |  | 10,948

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 9

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 10

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 11

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 12

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 13

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 14

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 15

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 16

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 17

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 18

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 19

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 20

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 21

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 22

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 23

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 24

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 25

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 26

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 27

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 28

| 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 and others.

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 29

| 1.1. | Equity interest

|  |  |  |  |  |  | % equity interest
Entity |  |  | Main activity |  | Country (1) |  | 06.30.21 |  | 12.31.20
BRF GmbH |  |  | Holding |  | Austria |  | 100.00 |  | 100.00
BRF Foods LLC | (g) |  | Import, industrialization and commercialization of products |  | Russia |  | 99.99 |  | 99.90
BRF Global Company Nigeria Ltd. |  |  | Marketing and logistics services |  | Nigeria |  | 99.00 |  | 99.00
BRF Global Company South Africa Proprietary Ltd. |  |  | Administrative, marketing and logistics services |  | South Africa |  | 100.00 |  | 100.00
BRF Global Company Nigeria Ltd. |  |  | Marketing and logistics services |  | Nigeria |  | 1.00 |  | 1.00
BRF Global GmbH |  |  | Holding and trading |  | Austria |  | 100.00 |  | 100.00
BRF Foods LLC | (h) |  | Import, industrialization and commercialization of products |  | Russia |  | 0.01 |  | 0.10
BRF Japan KK |  |  | Marketing and logistics services, import, export, industrialization and commercialization of products |  | Japan |  | 100.00 |  | 100.00
BRF Korea LLC |  |  | Marketing and logistics services |  | Korea |  | 100.00 |  | 100.00
BRF Shanghai Management Consulting Co. Ltd. |  |  | Provision of consultancy and marketing services |  | China |  | 100.00 |  | 100.00
BRF Shanghai Trading Co. Ltd. |  |  | Import, export and commercialization of products |  | China |  | 100.00 |  | 100.00
BRF Singapore Foods PTE Ltd. |  |  | Administrative, marketing and logistics services |  | Singapore |  | 100.00 |  | 100.00
Eclipse Holding Cöoperatief U.A. |  |  | Holding |  | The Netherlands |  | 99.99 |  | 99.99
Buenos Aires Fortune S.A. |  |  | Holding |  | Argentina |  | 4.36 |  | 4.36
Eclipse Latam Holdings |  |  | Holding |  | Spain |  | 100.00 |  | 100.00
Buenos Aires Fortune S.A. |  |  | Holding |  | Argentina |  | 95.64 |  | 95.64
Perdigão Europe Lda. |  |  | Import, export of products and administrative services |  | Portugal |  | 100.00 |  | 100.00
Perdigão International Ltd. | (d) |  | Import and export of products |  | Cayman Island |  | - |  | 100.00
ProudFood Lda. |  |  | Import and commercialization of products |  | Angola |  | 90.00 |  | 90.00
Sadia Chile S.A. |  |  | Import, export and commercialization of products |  | Chile |  | 40.00 |  | 40.00
Wellax Food Logistics C.P.A.S.U. Lda. |  |  | Import, commercialization of products and administrative services |  | Portugal |  | 100.00 |  | 100.00
BRF Austria GmbH |  |  | Holding |  | Austria |  | 100.00 |  | 100.00
One Foods Holdings Ltd. |  |  | Holding |  | UAE |  | 100.00 |  | 100.00
Al-Wafi Food Products Factory LLC |  |  | Import, export, industrialization and commercialization of products |  | UAE |  | 49.00 |  | 49.00
Badi Ltd. |  |  | Holding |  | UAE |  | 100.00 |  | 100.00
Al-Wafi Al-Takamol International for Foods Products |  |  | Import and commercialization of products |  | Saudi Arabia |  | 100.00 |  | 100.00
Joody Al Sharqiya Food Production Factory LLC | (b) |  | Import and commercialization of products |  | Saudi Arabia |  | 100.00 |  | -
BRF Al Yasra Food K.S.C.C. ("BRF AFC") | (c) |  | Import, commercialization and distribution of products |  | Kuwait |  | 100.00 |  | 75.00
BRF Foods GmbH |  |  | Industrialization, import and commercialization of products |  | Austria |  | 100.00 |  | 100.00
Al Khan Foodstuff LLC ("AKF") |  |  | Import, commercialization and distribution of products |  | Oman |  | 70.00 |  | 70.00
FFQ GmbH | (e) |  | Industrialization, import and commercialization of products |  | Austria |  | - |  | 100.00
TBQ Foods GmbH |  |  | Holding |  | Austria |  | 60.00 |  | 60.00
Banvit Bandirma Vitaminli |  |  | Import, industrialization and commercialization of products |  | Turkey |  | 91.71 |  | 91.71
Banvit Enerji ve Elektrik Üretim Ltd. Sti. | (a) |  | Generation and commercialization of electric energy |  | Turkey |  | 100.00 |  | 100.00
Banvit Foods SRL | (f) |  | Industrialization of grains and animal feed |  | Romania |  | - |  | 0.01
Nutrinvestments BV |  |  | Holding |  | The Netherlands |  | 100.00 |  | 100.00
Banvit ME FZE |  |  | Marketing and logistics services |  | UAE |  | 100.00 |  | 100.00
Banvit Foods SRL | (f) |  | Industrialization of grains and animal feed |  | Romania |  | - |  | 99.99
One Foods Malaysia SDN. BHD. |  |  | Marketing and logistics services |  | Malaysia |  | 100.00 |  | 100.00
Federal Foods LLC |  |  | Import, commercialization and distribution of products |  | UAE |  | 49.00 |  | 49.00
Federal Foods Qatar |  |  | Import, commercialization and distribution of products |  | Qatar |  | 49.00 |  | 49.00
BRF Hong Kong LLC | (a) |  | Import, commercialization and distribution of products |  | Hong Kong |  | 100.00 |  | 100.00
Eclipse Holding Cöoperatief U.A. |  |  | Holding |  | The Netherlands |  | 0.01 |  | 0.01
Establecimiento Levino Zaccardi y Cia. S.A. | (a) |  | 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
PP-BIO Administração de bem próprio S.A. | (i) |  | Management of assets |  | Brazil |  | 33.33 |  | 33.33
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
Sino dos Alpes Alimentos Ltda. | (a) |  | Industrialization and commercialization of products |  | 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 International Ltd. | (a) |  | Import and commercialization of products |  | Cayman Island |  | 100.00 |  | 100.00
Sadia Uruguay S.A. |  |  | Import and commercialization of products |  | Uruguay |  | 100.00 |  | 100.00
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
Establecimiento Levino Zaccardi y Cia. S.A. | (a) |  | Industrialization and commercialization of dairy products |  | Argentina |  | 0.01 |  | 0.01
PSA Laboratório Veterinário Ltda. |  |  | Veterinary activities |  | Brazil |  | 0.01 |  | 0.01
Sino dos Alpes Alimentos Ltda. | (a) |  | Industrialization and commercialization of products |  | Brazil |  | 0.01 |  | 0.01

| (1) | UAE – United Arab Emirates.

| (a) | Dormant subsidiaries. The Company is evaluating the liquidation of these subsidiaries.

| (b) | On January 18, 2021, 100% of the capital stock of Joody Al Sharqiya Food Production Factory LLC was acquired (note 1.2).

| (c) | On March 9, 2021, the minority stake on BRF AFC was acquired, as described below.

| (d) | On March 24, 2021, the subsidiary Perdigão International Ltd. was dissolved.

| (e) | On March 30, 2021, the subsidiary FFQ GMBH was dissolved.

| (f) | On May 4, 2021 the sale of shares held in Banvit Foods SRL was concluded, as described below.

| (g) | On May 31, 2021, BRF GMBH became owner of 99.99% of BRF Food LLC.

| (h) | On May 31, 2021, BRF Global GMBH became owner of 0.01% of BRF Food LLC.

| (i) | On July 30, 2021, BRF S.A. sold all the shares held in PP-BIO Administração de bem próprio S.A.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 30

On March 9, 2021 the Company, through its wholly-owned subsidiary One Foods Holdings Ltd.(“One Foods”) acquired from Al Yasra Food Company W.L.L the minority stake of 25% of BRF Al Yasra Food K.S.C.C. (“BRF AFC”), entity located in Kuwait, responsible for the distribution of BRF products in the country. The transaction was concluded for the amount equivalent to R$238,421 (USD40,828) and from this date, BRF AFC became a wholly-owned subsidiary of One Foods. The amount paid is presented in the financing activities on the statement of cash flows and the difference between the amount paid and the book value of the participation acquired was recorded in Equity as Other Reserves, in the amount of R$79,673.

On May 4, 2021, Nutrinvestment BV and Banvit Bandirma Vitaminli, indirectly controlled subsidiaries of the Company, concluded the sale to Aaylex System Group S.A. of 100% of the shares held in Banvit Foods SRL, engaged in the activities of manufacture of animal feed and egg hatchery in Romania. The sale amount, received on that date, was equivalent to R$132,425 (EUR 20,300). In June, the parties established a price adjustment due to net debt and working capital, in the amount equivalent to R$13,059 (EUR2,157). In the six-month period ended on June 30, 2021, the Company recognized a gain with the sale of R$23,590, mainly due to the write-off of the currency translation adjustment and to the price adjustment, recorded under Other Operating Income.

Except for the associates PP-BIO and PR-SAD in which the Company records the investments by the equity method, all other entities shown in the table above were consolidated.

| 1.2. | Business combinations

On January 18, 2021, through its wholly-owned subsidiary Badi Limited ("Badi"), the Company concluded the acquisition of 100% of the capital stock of Joody Al Sharqiya Food Production Factory ("Joody Al"), a food processing company in Saudi Arabia. The initial transaction amount was equivalent to R$41,620 (SAR29,793) paid in cash, and from this date, Joody Al has become a wholly-owned subsidiary of Badi. The consideration paid may be adjusted according to certain conditions established in the purchase agreement.

The goodwill of R$12,376 arising from the business combination consists mainly of the synergies expected with the combination of the operations of BRF and Joody Al, strengthening the Company’s presence in the Saudi Arabian market. The goodwill has been allocated to the International segment.

The fair value of the acquired assets and assumed liabilities in the business combination is presented below:

|  | Fair value on the acquisition date
Assets |  |
Cash and cash equivalents |  | 408
Inventories |  | 832
Advances |  | 232
Property, plant and equipment, net |  | 30,128
|  | 31,600
Liabilities |  |
Trade accounts payable |  | 1,420
Taxes payable |  | 550
Employee benefits |  | 286
Other current liabilities |  | 100
|  | 2,356
Net assets acquired |  | 29,244
Fair value of consideration paid |  | 41,620
Goodwill |  | 12,376

On June 18, 2021, through its wholly-owned subsidiary BRF Pet S.A., the Company executed a sale and purchase agreement for the acquisition of 100% of the capital stock of the companies that compose the Hercosul Group and paid an advance in the amount of R$90,000, which will be part of the consideration paid. On August 2, 2021, the transaction was concluded.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 31

On June 25, 2021, also through its wholly-owned subsidiary BRF Pet S.A., the Company executed a sale and purchase agreement for the acquisition of 100% of the capital stock of Mogiana Alimentos S.A. The transaction is subject to the satisfaction of conditions precedent.

The price to be paid for these acquisitions is of R$1,350,000 and is still subject to adjustments usual to transactions of this nature.

The acquisitions above will be reflected in the financial statements in the period when the transactions are concluded, according to applicable accounting requirements.

| 1.3. | Discontinued Operations

During the second quarter of 2021, the Company completed the price adjustment process related to sale of Campo Austral S.A. and determined a preliminary price adjustment related to the sale of Avex S.A., which is subject to modifications until the final agreement is signed between the parties.

The referred price adjustment totaled R$49,358 (R$41,286 net of taxes) and are presented in Net Loss of Discontinued Operations, consistently with the practice adopted in the sale of the operations in 2019.

| 1.4. | Investigations involving BRF

| 1.4.1. | Carne Fraca and Trapaça operations

The Company has been subject to two investigations conducted by Brazilian governmental entities, denominated “Carne Fraca Operation” in 2017 and “Trapaça Operation” in 2018, as detailed in the financial statements for the year ended on December 31, 2020 (note 1.2). 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.

The main impacts observed as result of the referred investigations were recorded in Other Operating Expenses in the amount of R$8,142 for the six-month period ended on June 30, 2021 (R$24,072 in the same period of the previous year) and for three-month period ended on June 30, 2021 R$2,905 (R$11,771 in the same period of the previous year) mostly related to expenditures with lawyers, legal advisors and consultants.

In addition to the impacts already recorded, there are uncertainties about the outcome of these investigations which may result in penalties, fines and normative sanctions, right restrictions and other forms of liabilities, for which the Company is not able to make a reliable estimate of the potential losses. The outcomes may result in payments of substantial amounts, which may cause a material adverse effect on the Company’s financial position, results and cash flows in the future.

Regarding the investigations conducted by regulators offices and governmental entities in the United States of America about these operations, on February 25, 2021, the Division of Enforcement of the U.S. Securities and Exchange Commission (“SEC”) issued a letter to the Company stating that it has concluded its investigation and, based on information to date, does not intend to recommend an enforcement action by the SEC against the Company. On May 5, 2021, the U.S. Department of Justice (“DOJ”) issued a letter stating that it has closed its investigation against BRF, based on information to date. No sanctions or penalties were imposed against the Company.

| 1.4.2. | Governance enhancement

The Company has been taking actions to strengthen the compliance with its policies, procedures and internal controls.

The Company believes that its efforts strengthens and consolidates its governance to ensure the highest levels of safety standards, integrity and quality.

Among the actions implemented, are: (i) strengthening in the risk management, specially compliance, (ii) continuous improvement of the Compliance, Internal Audit and Internal Controls departments, (iii) review and issuance of new policies and procedures specifically related to applicable anticorruption laws, (iv) review and enhancement of the procedures for reputational verification of business partners, (v) review and enhancement of the processes of internal investigation, (vi) expansion of the independent reporting channel, (vii) review of transactional controls, and (viii) review and issuance of new consequence policy for misconduct.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 32

| 1.5. | Coronavirus (COVID-19)

On January 31, 2020 the World Health Organization announced that the COVID-19 is a global health emergency and on March 11, 2020 declared it a global pandemic. The outbreak has triggered significant decisions from governments and private sector entities, which in addition to the potential impact, increased the uncertainty level for the economic agents and may cause effects in the amounts recognized in the interim financial information.

BRF continues to operate its industrial complexes, distribution centers, logistics, supply chain and administrative offices, even if temporarily and partially under remote work regime in some of the corporate offices. Therefore, until the date of approval of this interim financial information, there has been no relevant change in its production plan, operation and/or commercialization. Additionally, management has developed and implemented contingency plans to maintain the operations and monitors the effects of the pandemic through a permanent multidisciplinary monitoring committee, formed by executives, specialists in the public health area and consultants.

Due to the pandemic, the Company has incurred in direct expenditures, such as transportation, personnel, prevention, control and donations, which are presented in the statement of income (loss) within the following line items:

|  |  |  |  |  |  |  | Consolidated
|  |  |  | 2021 |  |  |  | 2020
|  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Cost of sales |  | (57,431) |  | (121,656) |  | (173,674) |  | (174,288)
Selling expenses |  | (19,166) |  | (24,090) |  | (18,575) |  | (46,317)
General and administrative expenses |  | (5,876) |  | (16,947) |  | (25,893) |  | (26,066)
|  | (82,473) |  | (162,693) |  | (218,142) |  | (246,671)

The management considered in its projections of results and cash flows, to the best of its knowledge, the effects and uncertainties regarding the pandemic. Due to the high volatility and uncertainty around the length and the impact of the pandemic, the Company will continue to monitor the situation and evaluate the impacts on assumptions and estimates used in preparing our financial reporting.

| 1.6. | Seasonality

During the months of November and December of each year, the Company is impacted by seasonality in the Brazil operating segment due to Christmas and New Year’s Celebrations. The products that are relevant contributors are: turkey, Chester®, ham and pork cuts (hind leg/pork loin).

In the International operating segment, seasonality is due to Ramadan, which is the holy month of the Muslim calendar. The beginning of Ramadan depends on the beginning of the moon cycle and in 2021 occurred between April 13, 2021 and May 12, 2021.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 33

| 2. | BASIS OF PREPARATION AND PRESENTATION OF INTERIM FINANCIAL INFORMATION

The parent company’s and consolidated interim financial information was prepared in accordance with the CPC 21 (R1) – Interim Financial Statements and the IAS 34 – Interim Financial Reporting issued by the International Accounting Standards Board - IASB as well as with the standards issued by the Brazilian Securities and Exchange Commission. All the relevant information applicable to the interim financial information, and only them, are being evidenced and correspond to those used by administration in its management.

The parent company’s and consolidated interim financial information is 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 interim financial information 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 interim financial information was prepared based on the recoverable historical cost, except for the following material items recognized in the statements of financial position:

(i) derivative financial instruments and non-derivative financial instruments measured at fair value;

(ii) share-based payments and employee benefits measured at fair value;

(iii) biological assets measured at fair value; and

(iv) assets held for sale in instances where the fair value is lower than historical cost.

The Company prepared parent company’s and consolidated interim financial information under the going concern assumption and disclosed all relevant information in its explanatory notes, in order to clarify and complement the accounting basis adopted.

| 3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim financial information, in this case quarterly financial information, aim to provide updated information based on the last annual financial statements disclosed. Therefore, the quarterly financial information focus on new activities, events and circumstances and do not repeat the information previously disclosed, except when Management judges that the maintenance of the information is relevant.

The interim financial information was prepared based on the accounting policies and estimates calculation methodologies adopted in the preparation of the annual financial statements for the year ended December 31, 2020 (note 3), except for: (i) the income taxes, which were measured according to CPC 21 / IAS 34 by applying the estimated annual effective tax rate to the pre-tax profit or loss for the interim period; and (ii) classification of payment of interest in the statements of cash flows, as described below.

In the six-month period ended June 30, 2021, the Company changed the classification of payment of interest in the statement of cash flows, reclassifying this item from Operating Activities to Financing Activities. This change was made for better presentation of the Company’s cash flows and convergence with the reports used by the administration in its management.

To ensure comparability between the periods presented, the Company performed the following reclassifications for the six-month period ended on June 30, 2020:

|  |  |  |  |  |  |  |  |  | Jan - Jun 2020
|  |  |  |  |  | Parent company |  |  |  |  |  | Consolidated
|  | Previously presented |  | Reclassification |  | Restated |  | Previously presented |  | Reclassification |  | Restated
Net cash provided by operating activities |  | 2,171,482 |  | 474,804 |  | 2,646,286 |  | 3,553,072 |  | 553,441 |  | 4,106,513
Net cash used in investing activities |  | (416,690) |  | - |  | (416,690) |  | (425,352) |  | - |  | (425,352)
Net cash provided by (used in) financing activities |  | 1,147,014 |  | (474,804) |  | 672,210 |  | 1,243,293 |  | (553,441) |  | 689,852
Effect of exchange rate variation on cash and cash equivalents |  | 198,521 |  | - |  | 198,521 |  | 1,062,477 |  | - |  | 1,062,477
Net increase in cash and cash equivalents |  | 3,100,327 |  | - |  | 3,100,327 |  | 5,433,490 |  | - |  | 5,433,490

There were no changes on such policies and estimates calculation methodologies. As allowed by CPC 21 / IAS 34, Management decided not to disclose again the details of the accounting policies adopted by the Company. Hence, the interim financial information should be read along with the annual financial statements for the year ended December 31, 2020, in order to allow the users to further understand the Company’s financial conditions and liquidity, as well as its capacity to generate profits and cash flows.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 34

| 4. | CASH AND CASH EQUIVALENTS

| Average rate (1) |  | Parent company |  | Consolidated
|  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Cash and bank accounts |  |  |  |  |  |  |  |  |
U.S. Dollar | - |  | 500 |  | 520 |  | 1,727,636 |  | 1,185,208
Brazilian Reais | - |  | 82,180 |  | 111,615 |  | 86,105 |  | 112,181
Euro | - |  | 2,944 |  | 6,144 |  | 72,737 |  | 54,687
Other currencies | - |  | 110 |  | 28 |  | 1,129,025 |  | 1,086,996
|  |  | 85,734 |  | 118,307 |  | 3,015,503 |  | 2,439,072
Cash equivalents |  |  |  |  |  |  |  |  |
In Brazilian Reais |  |  |  |  |  |  |  |  |
Investment funds | 0.67% |  | 3,759 |  | 4,684 |  | 3,759 |  | 4,684
Bank deposit certificates | 3.95% |  | 2,442,530 |  | 3,650,812 |  | 2,452,201 |  | 3,662,448
|  |  | 2,446,289 |  | 3,655,496 |  | 2,455,960 |  | 3,667,132
In U.S. Dollar |  |  |  |  |  |  |  |  |
Term deposit | - |  | - |  | - |  | - |  | 198,878
Overnight | 0.13% |  | 119,550 |  | 102,336 |  | 1,420,426 |  | 1,220,232
Other currencies |  |  |  |  |  |  |  |  |
Term deposit | 1.00% |  | - |  | - |  | 49,953 |  | 51,311
|  |  | 119,550 |  | 102,336 |  | 1,470,379 |  | 1,470,421
|  |  | 2,651,573 |  | 3,876,139 |  | 6,941,842 |  | 7,576,625

| (1) | Weighted average annual rate.

| 5. | MARKETABLE SECURITIES

|  |  |  |  | Average rate (2) |  | Parent company |  | Consolidated
| WAM (1) |  | Currency |  |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks | - |  | HKD |  | - |  | - |  | - |  | - |  | 42,029
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |  |  |
Financial treasury bills | 3.29 |  | R$ |  | 1.90% |  | 315,036 |  | 312,515 |  | 315,036 |  | 312,515
Investment funds - FIDC BRF | 2.46 |  | R$ |  | - |  | 14,911 |  | 15,044 |  | 14,911 |  | 15,044
Investment funds | 0.50 |  | ARS |  | - |  | - |  | - |  | 1,374 |  | 1,643
|  |  |  |  |  |  | 329,947 |  | 327,559 |  | 331,321 |  | 329,202
Amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |
Sovereign bonds and others (3) | 1.83 |  | AOA |  | 3.82% |  | - |  | - |  | 318,123 |  | 287,504
|  |  |  |  |  |  | 329,947 |  | 327,559 |  | 649,444 |  | 658,735
Current |  |  |  |  |  |  | 315,036 |  | 312,515 |  | 316,410 |  | 314,158
Non-current (4) |  |  |  |  |  |  | 14,911 |  | 15,044 |  | 333,034 |  | 344,577

| (1) | Weighted average maturity in years.

| (2) | Weighted average annual rate.

| (3) | 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$14,666 (R$9,894 on December 31, 2020).

| (4) | Maturity until December of 2023.

On June 30, 2021, the amount of R$204,659 (R$366,671 on December 31, 2020) classified as cash and cash equivalents and marketable securities were pledged as guarantee, with no use restrictions, for USD denominated future contracts traded on B3.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 35

| 6. | TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Trade accounts receivable |  |  |  |  |  |  |
Domestic customers | 782,439 |  | 1,999,807 |  | 785,826 |  | 2,002,586
Domestic related parties | 13,695 |  | 6,228 |  | - |  | -
Foreign customers | 480,019 |  | 537,584 |  | 2,782,923 |  | 2,716,551
Foreign related parties | 5,714,836 |  | 3,239,348 |  | - |  | -
| 6,990,989 |  | 5,782,967 |  | 3,568,749 |  | 4,719,137
( - ) Adjustment to present value | (5,936) |  | (10,026) |  | (9,710) |  | (13,316)
( - ) Expected credit losses | (542,708) |  | (555,712) |  | (590,676) |  | (605,940)
| 6,442,345 |  | 5,217,229 |  | 2,968,363 |  | 4,099,881
Current | 6,435,531 |  | 5,210,498 |  | 2,961,245 |  | 4,092,855
Non-current | 6,814 |  | 6,731 |  | 7,118 |  | 7,026
Other receivables |  |  |  |  |  |  |
Other receivables | 88,216 |  | 113,949 |  | 88,216 |  | 113,949
( - ) Adjustment to present value | (602) |  | (156) |  | (602) |  | (156)
( - ) Expected credit losses | (16,395) |  | (27,389) |  | (16,395) |  | (27,389)
| 71,219 |  | 86,404 |  | 71,219 |  | 86,404
Current | 35,268 |  | 43,566 |  | 35,268 |  | 43,566
Non-current (1) | 35,951 |  | 42,838 |  | 35,951 |  | 42,838

| (1) | Weighted average maturity of 2.07 years.

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 June 30, 2021, FIDC BRF had an outstanding balance of R$761,098 (R$549,083 on December 31, 2020) related to such credit rights, which are no longer recorded in the Company’s statement of financial position.

On June 30, 2021, other receivables are mainly represented by receivables from the sale of farms and various properties, with a balance of R$64,846 (R$78,258 on December 31, 2020).

The movements of the expected credit losses are presented below:

Parent company | Consolidated
| 06.30.21 |  | 06.30.21
Beginning balance | (555,712) |  | (605,940)
(Additions) Reversals | (5,716) |  | (8,492)
Write-offs | 1,765 |  | 3,406
Exchange rate variation | 16,955 |  | 20,350
Ending balance | (542,708) |  | (590,676)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 36

The aging of trade accounts receivable is as follows:

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Not overdue | 6,433,441 |  | 5,206,584 |  | 2,774,988 |  | 4,010,140
Overdue |  |  |  |  |  |  |
01 to 60 days | 12,954 |  | 29,631 |  | 195,166 |  | 104,195
61 to 90 days | 1,778 |  | 1,357 |  | 5,329 |  | 6,045
91 to 120 days | 1,619 |  | 469 |  | 1,689 |  | 398
121 to 180 days | 2,592 |  | 458 |  | 6,728 |  | 7,024
181 to 360 days | 3,138 |  | 3,448 |  | 10,499 |  | 15,688
More than 360 days | 535,467 |  | 541,020 |  | 574,350 |  | 575,647
( - ) Adjustment to present value | (5,936) |  | (10,026) |  | (9,710) |  | (13,316)
( - ) Expected credit losses | (542,708) |  | (555,712) |  | (590,676) |  | (605,940)
| 6,442,345 |  | 5,217,229 |  | 2,968,363 |  | 4,099,881

| 7. | INVENTORIES

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Finished goods | 3,254,827 |  | 2,162,977 |  | 4,707,457 |  | 3,610,585
Work in progress | 228,392 |  | 191,110 |  | 229,769 |  | 192,335
Raw materials | 1,751,812 |  | 1,920,891 |  | 1,852,725 |  | 2,046,681
Packaging materials | 142,408 |  | 88,359 |  | 146,467 |  | 92,256
Secondary materials | 641,529 |  | 522,125 |  | 651,111 |  | 531,801
Supplies | 182,827 |  | 173,030 |  | 220,008 |  | 207,033
Imports in transit | 67,951 |  | 107,829 |  | 67,951 |  | 107,829
Other | 148,937 |  | 75,508 |  | 181,342 |  | 94,816
(-) Adjustment to present value | (102,186) |  | (80,568) |  | (102,193) |  | (80,577)
| 6,316,497 |  | 5,161,261 |  | 7,954,637 |  | 6,802,759

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:

| Parent company
|  |  |  |  |  |  | 06.30.21
| Realizable value through sale | Impaired inventories | Obsolete inventories | Total
Beginning balance | (23,957) |  | (23,579) |  | (7,715) |  | (55,251)
Additions | (61,538) |  | (35,136) |  | (3,142) |  | (99,816)
Reversals | 72,896 |  | - |  | - |  | 72,896
Write-offs | - |  | 39,137 |  | 2,625 |  | 41,762
Ending balance | (12,599) |  | (19,578) |  | (8,232) |  | (40,409)

| Consolidated
|  |  |  |  |  |  | 06.30.21
| Realizable value through sale | Impaired inventories | Obsolete inventories | Total
Beginning balance | (31,155) |  | (29,831) |  | (14,719) |  | (75,705)
Additions | (74,026) |  | (42,361) |  | (4,349) |  | (120,736)
Reversals | 87,762 |  | - |  | - |  | 87,762
Write-offs | - |  | 47,213 |  | 4,235 |  | 51,448
Business combination | - |  | (42) |  | - |  | (42)
Exchange rate variation | 392 |  | 364 |  | 487 |  | 1,243
Ending balance | (17,027) |  | (24,657) |  | (14,346) |  | (56,030)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 37

| 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
|  |  |  |  |  |  |  |  |  |  |  |  |  | 06.30.21
| Current |  | Non-current
| Live animals |  | Live animals |  |  |
| Poultry | Pork | Total |  | Poultry | Pork | Forests | Total
Beginning balance | 783,706 |  | 1,260,582 |  | 2,044,288 |  |  | 405,030 |  | 425,252 |  | 324,444 |  | 1,154,726
Additions/Transfer | 6,514,763 |  | 4,523,483 |  | 11,038,246 |  |  | 42,234 |  | 217,798 |  | 20,318 |  | 280,350
Changes in fair value (1) | 1,197,546 |  | 275,166 |  | 1,472,712 |  |  | 57,914 |  | (115,640) |  | - |  | (57,726)
Harvest | - |  | - |  | - |  |  | - |  | - |  | (26,569) |  | (26,569)
Write-off | - |  | - |  | - |  |  | - |  | - |  | (140) |  | (140)
Transfer between current and non-current | 42,015 |  | 59,619 |  | 101,634 |  |  | (42,015) |  | (59,619) |  | - |  | (101,634)
Transfer to inventories | (7,603,504) |  | (4,574,802) |  | (12,178,306) |  |  | - |  | - |  | - |  | -
Ending balance | 934,526 |  | 1,544,048 |  | 2,478,574 |  |  | 463,163 |  | 467,791 |  | 318,053 |  | 1,249,007
| Consolidated
|  |  |  |  |  |  |  |  |  |  |  |  |  | 06.30.21
| Current |  | Non-current
| Live animals |  | Live animals |  |  |
| Poultry | Pork | Total |  | Poultry | Pork | Forests | Total
Beginning balance | 868,428 |  | 1,260,582 |  | 2,129,010 |  |  | 472,053 |  | 425,252 |  | 324,444 |  | 1,221,749
Additions/Transfer | 6,522,342 |  | 4,523,483 |  | 11,045,825 |  |  | 42,990 |  | 217,798 |  | 20,318 |  | 281,106
Changes in fair value (1) | 1,204,383 |  | 275,166 |  | 1,479,549 |  |  | 68,259 |  | (115,640) |  | - |  | (47,381)
Harvest | - |  | - |  | - |  |  | - |  | - |  | (26,569) |  | (26,569)
Write-off | - |  | - |  | - |  |  | - |  | - |  | (140) |  | (140)
Transfer between current and non-current | 42,015 |  | 59,619 |  | 101,634 |  |  | (42,015) |  | (59,619) |  | - |  | (101,634)
Transfer to inventories | (7,603,504) |  | (4,574,802) |  | (12,178,306) |  |  | - |  | - |  | - |  | -
Exchange variation | (17,836) |  | - |  | (17,836) |  |  | (12,471) |  | - |  | - |  | (12,471)
Ending balance | 1,015,828 |  | 1,544,048 |  | 2,559,876 |  |  | 528,816 |  | 467,791 |  | 318,053 |  | 1,314,660

| (1) | The change in the fair value of biological assets includes depreciation of breeders and depletion of forests in the amount of R$441,867 in the parent company and R$485,564 in the consolidated.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 38

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

| Parent company
| 06.30.21 |  | 12.31.20
| Quantity (thousand of heads) |  | Book value |  | Quantity (thousand of heads) |  | Book value
Consumable biological assets |  |  |  |  |  |  |
Immature poultry | 173,065 |  | 934,526 |  | 178,143 |  | 783,706
Immature pork | 4,216 |  | 1,544,048 |  | 4,204 |  | 1,260,582
Total current | 177,281 |  | 2,478,574 |  | 182,347 |  | 2,044,288
Production biological assets |  |  |  |  |  |  |
Immature poultry | 5,845 |  | 167,452 |  | 6,243 |  | 152,632
Mature poultry | 10,624 |  | 295,711 |  | 10,207 |  | 252,398
Immature pork | 199 |  | 100,935 |  | 203 |  | 93,466
Mature pork | 453 |  | 366,856 |  | 457 |  | 331,786
Total non-current | 17,121 |  | 930,954 |  | 17,110 |  | 830,282
| 194,402 |  | 3,409,528 |  | 199,457 |  | 2,874,570

| Consolidated
| 06.30.21 |  | 12.31.20
| Quantity (thousand of heads) |  | Book value |  | Quantity (thousand of heads) |  | Book value
Consumable biological assets |  |  |  |  |  |  |
Immature poultry | 192,597 |  | 1,015,828 |  | 199,877 |  | 868,428
Immature pork | 4,216 |  | 1,544,048 |  | 4,204 |  | 1,260,582
Total current | 196,813 |  | 2,559,876 |  | 204,081 |  | 2,129,010
Production biological assets |  |  |  |  |  |  |
Immature poultry | 6,669 |  | 195,009 |  | 7,320 |  | 188,967
Mature poultry | 12,061 |  | 333,807 |  | 11,395 |  | 283,086
Immature pork | 199 |  | 100,935 |  | 203 |  | 93,466
Mature pork | 453 |  | 366,856 |  | 457 |  | 331,786
Total non-current | 19,382 |  | 996,607 |  | 19,375 |  | 897,305
| 216,195 |  | 3,556,483 |  | 223,456 |  | 3,026,315

The Company has forests pledged as collateral for financing and tax/civil contingencies on June 30, 2021 in the amount of R$74,845 in the parent company and in the consolidated (R$68,381 in the parent company and in the consolidated at December 31, 2020).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 39

| 9. | RECOVERABLE TAXES

The rollforward of recoverable taxes are set forth below:

|  |  |  | Parent company
|  | Note |  | 12.31.20 |  | Additions |  | Compensations / Reversals |  | Transfers (1) |  | Interest |  | 06.30.21
ICMS and VAT |  | 9.1 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable ICMS and VAT |  |  |  | 1,483,612 |  | 212,292 |  | (36,667) |  | (89,314) |  | 120 |  | 1,570,043
(-) Impairment |  |  |  | (154,721) |  | (16,397) |  | 14,225 |  | 14,116 |  | - |  | (142,777)
PIS and COFINS |  | 9.2 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable PIS and COFINS |  |  |  | 3,167,001 |  | 263,179 |  | (433,178) |  | - |  | 16,129 |  | 3,013,131
(-) Impairment |  |  |  | (14,228) |  | - |  | - |  | - |  | - |  | (14,228)
IPI |  | 9.3 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable IPI |  |  |  | 808,524 |  | 2,978 |  | (460) |  | - |  | 48,624 |  | 859,666
(-) Impairment |  |  |  | (1,984) |  | - |  | - |  | - |  | - |  | (1,984)
INSS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable INSS |  |  |  | 341,824 |  | 5,869 |  | (56,356) |  | - |  | 1,921 |  | 293,258
(-) Impairment |  |  |  | (102) |  | - |  | - |  | - |  | - |  | (102)
Other taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other recoverable taxes |  |  |  | 52,115 |  | 23,930 |  | - |  | - |  | - |  | 76,045
(-) Impairment |  |  |  | (1,484) |  | - |  | 15 |  | - |  | - |  | (1,469)
|  |  |  | 5,680,557 |  | 491,851 |  | (512,421) |  | (75,198) |  | 66,794 |  | 5,651,583
Current |  |  |  | 812,338 |  |  |  |  |  |  |  |  |  | 774,361
Non-current |  |  |  | 4,868,219 |  |  |  |  |  |  |  |  |  | 4,877,222
|  | Note |  | 12.31.20 |  | Additions |  | Compensations / Reversals |  | Transfers (1) |  | Restatement |  | 06.30.21
Income taxes |  | 9.4 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable income taxes |  |  |  | 91,996 |  | 11,128 |  | (8) |  | - |  | 88 |  | 103,204
(-) Impairment |  |  |  | (8,985) |  | - |  | - |  | - |  | - |  | (8,985)
|  |  |  | 83,011 |  | 11,128 |  | (8) |  | - |  | 88 |  | 94,219
Current |  |  |  | 28,888 |  |  |  |  |  |  |  |  |  | 39,926
Non-current |  |  |  | 54,123 |  |  |  |  |  |  |  |  |  | 54,293

| (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.

|  |  |  | Consolidated
|  | Note |  | 12.31.20 |  | Additions |  | Compensations / Reversals |  | Transfers (1) |  | Interest |  | Exchange variation |  | 06.30.21
ICMS and VAT |  | 9.1 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable ICMS and VAT |  |  |  | 1,568,975 |  | 246,914 |  | (94,724) |  | (89,314) |  | 120 |  | (5,049) |  | 1,626,922
(-) Impairment |  |  |  | (154,721) |  | (16,397) |  | 14,225 |  | 14,116 |  | - |  | 1 |  | (142,776)
PIS and COFINS |  | 9.2 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable PIS and COFINS |  |  |  | 3,168,099 |  | 263,439 |  | (433,235) |  | - |  | 16,128 |  | 1 |  | 3,014,432
(-) Impairment |  |  |  | (14,228) |  | - |  | - |  | - |  | - |  | - |  | (14,228)
IPI |  | 9.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable IPI |  |  |  | 808,528 |  | 2,978 |  | (460) |  | - |  | 48,623 |  | - |  | 859,669
(-) Impairment |  |  |  | (1,984) |  | - |  | - |  | - |  | - |  | - |  | (1,984)
INSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable INSS |  |  |  | 341,825 |  | 5,869 |  | (56,356) |  | - |  | 1,920 |  | - |  | 293,258
(-) Impairment |  |  |  | (102) |  | - |  | - |  | - |  | - |  | - |  | (102)
Other taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other recoverable taxes |  |  |  | 52,889 |  | 23,930 |  | (1) |  | - |  | - |  | (49) |  | 76,769
(-) Impairment |  |  |  | (1,963) |  | - |  | 15 |  | - |  | - |  | 2 |  | (1,946)
|  |  |  | 5,767,318 |  | 526,733 |  | (570,536) |  | (75,198) |  | 66,791 |  | (5,094) |  | 5,710,014
Current |  |  |  | 899,120 |  |  |  |  |  |  |  |  |  |  |  | 832,782
Non-current |  |  |  | 4,868,198 |  |  |  |  |  |  |  |  |  |  |  | 4,877,232
|  | Note |  | 12.31.20 |  | Additions |  | Compensations / Reversals |  | Transfers (1) |  | Restatement |  | Exchange variation |  | 06.30.21
Income taxes |  | 9.4 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable income taxes |  |  |  | 107,728 |  | 56,726 |  | (5,439) |  | - |  | 86 |  | (3,668) |  | 155,433
(-) Impairment |  |  |  | (9,029) |  | - |  | - |  | - |  | - |  | - |  | (9,029)
|  |  |  | 98,699 |  | 56,726 |  | (5,439) |  | - |  | 86 |  | (3,668) |  | 146,404
Current |  |  |  | 43,840 |  |  |  |  |  |  |  |  |  |  |  | 77,240
Non-current |  |  |  | 54,859 |  |  |  |  |  |  |  |  |  |  |  | 69,164

| (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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 40

| 9.1. | PIS and COFINS –Social Integration Plan and Contribution for Social Security Financing

On December 7, 2020 the Company received an unappealable judicial decision to a process filled by Batávia S.A. (subsidiary incorporated by BRF S.A.) granting the Company the right to exclude ICMS from the PIS and COFINS calculation basis. Throughout the first semester of 2021, the Company, supported by its consultants, obtained the fiscal files for the period and reconciled them with the accessory obligations, measuring the credits reliably through the ICMS presented in the invoices. Thus, the amount of R$75,043 was recognized under Recoverable PIS and COFINS, being R$29,887 of principal recorded in Other Operating Income and R$45,156 of interests recorded in Financial Income.

As of June 30, 2021, 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$2,717,801 (R$2,818,391 as of December 31, 2020). The amount of R$191,761 related do these credits was offset against other federal taxes in the six-month period ended on June 30, 2021 (null in the same period of the previous year).

In the study prepared by the Management, its realization is estimated through offsetting with federal taxes or through reimbursement of the amounts as expected below:

| PIS and COFINS
Current | 524,823
Non-current | 2,192,978
July to december 2022 | 328,000
2023 | 537,000
2024 | 672,000
2025 | 655,978
| 2,717,801

| 9.2. | IPI - Industrialized Product Tax

The Company recognized relevant 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 June 30, 2021 is R$909,443 (R$860,820 on December 31, 2020), of which R$853,624 (R$805,001 on December 31, 2020) is recorded as Recoverable Taxes and the remainder, referring to cases in which the government will reimburse in cash, is recorded as Other Current Assets, in the amount of R$43,428 (R$40,370 on December 31, 2020) and as Other Non-Current Assets, in the amount of R$12,391 (R$15,449 on December 31, 2020).

In the study prepared by the Management, its realization is estimated through the refund of the amounts as expected below:

| IPI
Current | 43,428
Non-current | 866,015
July to december 2022 | 12,391
2025 | 626,659
2026 | 226,965
| 909,443

| 9.3. | Realization of Brazilian federal tax credits

The Company used PIS, COFINS, IPI, IRPJ, CSLL, INSS and other tax credits to offset federal taxes payable such as INSS and withholding Income Tax in the amount of R$490,002 in the six-month period ended June 30, 2021 (R$411,683 in the parent company and consolidated in the same period of the previous year), preserving its liquidity and optimizing its capital structure.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 41

| 10. | DEFERRED INCOME TAXES

| 10.1. | Composition

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Assets |  |  |  |  |  |  |
Tax losses carryforward | 2,052,840 |  | 2,052,843 |  | 2,070,138 |  | 2,060,846
Negative calculation basis (social contribution) | 769,405 |  | 769,402 |  | 772,951 |  | 772,283
Temporary differences - Assets |  |  |  |  |  |  |
Provisions for tax, civil and labor risks | 463,517 |  | 458,019 |  | 463,517 |  | 458,019
Suspended collection taxes | 1,881 |  | 1,871 |  | 1,881 |  | 1,871
Expected credit losses | 169,078 |  | 194,969 |  | 169,090 |  | 194,977
Impairment on tax credits | 62,353 |  | 67,900 |  | 62,353 |  | 67,900
Provision for other obligations | 99,519 |  | 115,959 |  | 100,364 |  | 115,959
Employees' profit sharing | 13,365 |  | 86,752 |  | 13,365 |  | 86,752
Write-down to net realizable value of inventories | 13,819 |  | 19,184 |  | 14,117 |  | 19,189
Employees' benefits plan | 223,299 |  | 216,510 |  | 237,987 |  | 216,510
Lease basis difference | 104,766 |  | 86,308 |  | 104,766 |  | 86,308
Adjustment to estimated annual effective tax rate - CPC 21 | 518,647 |  | - |  | 518,647 |  | -
Other temporary differences | 12,209 |  | 10,632 |  | 9,449 |  | 40,028
| 4,504,698 |  | 4,080,349 |  | 4,538,625 |  | 4,120,642
Temporary differences - Liabilities |  |  |  |  |  |  |
Difference on tax x accounting basis for goodwill amortization | (321,298) |  | (320,729) |  | (321,298) |  | (320,729)
Difference on tax x accounting basis for depreciation (useful life) | (871,650) |  | (851,436) |  | (868,245) |  | (851,436)
Business combination (1) | (855,821) |  | (740,385) |  | (874,963) |  | (761,429)
Unrealized gains on derivatives, net | (58,246) |  | (42,493) |  | (58,246) |  | (42,493)
Unrealized fair value gains, net | (50,477) |  | (39,269) |  | (49,560) |  | (39,269)
Other temporary differences | (21,026) |  | (17,268) |  | (35,497) |  | (22,749)
| (2,178,518) |  | (2,011,580) |  | (2,207,809) |  | (2,038,105)
Total deferred taxes | 2,326,180 |  | 2,068,769 |  | 2,330,816 |  | 2,082,537
Total Assets | 2,326,180 |  | 2,068,769 |  | 2,361,035 |  | 2,109,064
Total Liabilities | - |  | - |  | (30,219) |  | (26,527)
| 2,326,180 |  | 2,068,769 |  | 2,330,816 |  | 2,082,537

| (1) | The deferred tax asset on the Sadia business combination was recorded on the amortization difference between the accounting and tax goodwill calculated as of the purchase price allocation date. The deferred tax liability on the Sadia 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:

Parent company | Consolidated
| 06.30.21 |  | 06.30.21
Beginning balance | 2,068,769 |  | 2,082,537
Deferred taxes on profit recognized in income | 291,368 |  | 293,328
Deferred income taxes recognized in other comprehensive income | (33,957) |  | (33,957)
Other (1) | - |  | (11,092)
Ending balance | 2,326,180 |  | 2,330,816

| (1) | Mainly related to the foreign exchange variation effect on the balances in foreign companies.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 42

| 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 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. Based on this estimate, Management believes that it is probable that these deferred tax credits will be realized, as shown below:

| Parent company |  | Consolidated
2021 | 111,727 |  | 119,175
2022 | 140,612 |  | 140,612
2023 | 230,254 |  | 231,408
2024 | 288,074 |  | 291,677
2025 | 329,733 |  | 335,681
2026 to 2028 | 1,035,323 |  | 1,035,323
2029 onwards | 686,522 |  | 689,213
| 2,822,245 |  | 2,843,089

The Company has tax losses carryforward in Brazil, which at current tax rates represent R$4,978,269 on June 30, 2021 (R$4,589,674 on December 31, 2020). Within this amount, R$2,822,245 on June 30, 2021 and on December 31, 2020 are recognized as an asset, according to the recoverability expectation above. 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.

| 10.3. | Effective income tax rate reconciliation

| Parent company |  | Consolidated
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Income (loss) before taxes - continued operations | (191,787) |  | (205,620) |  | 406,100 |  | 309,715 |  | (179,056) |  | (153,785) |  | 396,884 |  | 345,094
Nominal tax rate | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34%
Expense at nominal rate | 65,208 |  | 69,911 |  | (138,074) |  | (105,303) |  | 60,879 |  | 52,287 |  | (134,941) |  | (117,332)
Adjustments to income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from associates and joint ventures | (568,335) |  | (236,248) |  | 709,328 |  | 2,064,994 |  | - |  | - |  | - |  | -
Difference of tax rates on results of foreign subsidiaries | - |  | - |  | - |  | - |  | (41,663) |  | 22,093 |  | 435,282 |  | 998,676
Difference of functional currency of foreign subsidiaries | - |  | - |  | - |  | - |  | (530,777) |  | (290,234) |  | 283,238 |  | 1,053,917
Deferred tax assets not recognized (1) | 111,727 |  | (372,022) |  | (958,804) |  | (2,291,220) |  | 111,727 |  | (372,022) |  | (958,804) |  | (2,291,220)
Share-based payment | (5,660) |  | (11,287) |  | (4,028) |  | (4,812) |  | (5,660) |  | (11,287) |  | (4,028) |  | (4,812)
Penalties | (1,010) |  | (3,322) |  | (2,117) |  | (6,181) |  | (1,010) |  | (3,322) |  | (2,117) |  | (6,181)
Investment grant | 10,815 |  | 34,160 |  | 8,980 |  | 19,514 |  | 10,815 |  | 34,160 |  | 8,980 |  | 19,514
Adjustment to estimated annual effective tax rate – CPC 21 / IAS 34 | 374,222 |  | 518,647 |  | 279,691 |  | 275,051 |  | 374,222 |  | 518,647 |  | 279,691 |  | 275,051
Other permanent differences | 1,964 |  | 27,367 |  | 2,794 |  | (3,809) |  | 1,964 |  | 27,365 |  | 2,944 |  | (3,810)
| (11,069) |  | 27,206 |  | (102,230) |  | (51,766) |  | (19,503) |  | (22,313) |  | (89,755) |  | (76,197)
Effective rate | -5.8% |  | 13.2% |  | 25.2% |  | 16.7% |  | -10.9% |  | -14.5% |  | 22.6% |  | 22.1%
Current tax | (256,090) |  | (256,090) |  | - |  | - |  | (283,749) |  | (315,641) |  | (21,983) |  | (38,332)
Deferred tax | 245,021 |  | 283,296 |  | (102,230) |  | (51,766) |  | 264,246 |  | 293,328 |  | (67,772) |  | (37,865)

| (1) | Amount related to the non-recognition of deferred tax on tax losses carryforward in the amount of R$1,094,182 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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 43

| 11. | JUDICIAL DEPOSITS

The rollforward of the judicial deposits is set forth below:

| Parent company
|  |  |  |  |  |  | 06.30.21
| Tax | Labor | Civil, commercial and other | Total
Beginning balance | 248,990 |  | 269,747 |  | 34,539 |  | 553,276
Additions | 4,566 |  | 48,422 |  | 8,377 |  | 61,365
Release in favor of the Company | (1,110) |  | (24,065) |  | (204) |  | (25,379)
Release in favor of the counterparty | (147) |  | (61,077) |  | (527) |  | (61,751)
Interest | 1,047 |  | 13,702 |  | 1,579 |  | 16,328
Ending balance | 253,346 |  | 246,729 |  | 43,764 |  | 543,839

| Consolidated
|  |  |  |  |  |  | 06.30.21
| Tax | Labor | Civil, commercial and other | Total
Beginning balance | 248,990 |  | 269,812 |  | 34,539 |  | 553,341
Additions | 4,566 |  | 48,422 |  | 8,377 |  | 61,365
Release in favor of the Company | (1,110) |  | (24,065) |  | (204) |  | (25,379)
Release in favor of the counterparty | (147) |  | (61,077) |  | (527) |  | (61,751)
Interest | 1,047 |  | 13,702 |  | 1,579 |  | 16,328
Exchange rate variation | - |  | (11) |  | - |  | (11)
Ending balance | 253,346 |  | 246,783 |  | 43,764 |  | 543,893

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 44

| 12. | INVESTMENTS

The rollforward of the direct investments in subsidiaries and affiliates of the parent company is set forth below:

| Subsidiaries |  | Affiliates |
| BRF Energia S.A. |  | BRF GmbH |  | Establec. Levino Zaccardi |  | BRF Pet S.A. |  | BRF Austria GmbH |  | PSA Labor. Veter. Ltda |  | Sadia Alimentos S.A. |  | Proud Food Lda |  | Sadia International Ltd. |  | Sadia Uruguay S.A. |  | Sadia Chile S.A. |  | Eclipse Holding Cooperatief |  | VIP S.A. Empr. e Particip. Imob |  | PP-BIO Adm. Bem próprio S.A. |  | PR-SAD Adm. Bem próprio S.A. |  | Total
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 06.30.21
a) Participation as of June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
% of participation | 100.00% |  | 100.00% |  | 99.99% |  | 100.00% |  | 100.00% |  | 99.99% |  | 43.10% |  | 10.00% |  | 100.00% |  | 100.00% |  | 60.00% |  | 0.01% |  | 100.00% |  | 33.33% |  | 33.33% |  |
Total quantity of shares and quotas | 7,176,530 |  | 1 |  | 9,918,875 |  | 228,389,352 |  | 100 |  | 5,463,850 |  | 594,576,682 |  | 150,000 |  | 900 |  | 2,352,881,073 |  | 3,027,987,368 |  | 10,000 |  | 14,249,459 |  | - |  | - |  |
Quantity of shares and quotas held | 7,176,530 |  | 1 |  | 9,918,538 |  | 228,389,352 |  | 100 |  | 5,463,849 |  | 256,253,695 |  | 15,000 |  | 900 |  | 2,352,881,073 |  | 1,816,792,421 |  | 1 |  | 14,249,459 |  | - |  | - |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  |
b) Information as of June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share capital | 1,311 |  | 6,523 |  | 1,765 |  | 122,664 |  | 120 |  | 5,564 |  | 338,054 |  | 3 |  | - |  | 497,012 |  | 16,169 |  | 334,999 |  | 1,311 |  | - |  | - |  |
Shareholders' equity | 518 |  | 10,725,240 |  | (100) |  | 99,419 |  | 226,886 |  | 5,433 |  | 3,921 |  | 1,759 |  | - |  | 88,483 |  | (46,535) |  | 166 |  | 2,322 |  | - |  | - |  |
Income (loss) for the year | - |  | 41,677 |  | (164) |  | (5,023) |  | 87,458 |  | 32 |  | 1,934 |  | 311 |  | (610) |  | 4,854 |  | (7,393) |  | (13,763) |  | 15 |  | - |  | - |  |
c) Movements of investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance (12.31.20) | 518 |  | 11,455,186 |  | 51 |  | 14,412 |  | 314,811 |  | 5,402 |  | 1,130 |  | 154 |  | 29,557 |  | 89,924 |  | - |  | - |  | 2,307 |  | 2,591 |  | 5,699 |  | 11,921,742
Result Movements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) | - |  | (772,002) |  | (171) |  | (4,993) |  | 79,479 |  | 32 |  | 1,019 |  | 31 |  | 2,219 |  | 4,762 |  | (5,237) |  | (1) |  | 15 |  | - |  | - |  | (694,847)
Capital movements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital increase (reduction) | - |  | - |  | - |  | 90,000 |  | - |  | - |  | - |  | - |  | (31,002) |  | - |  | - |  | - |  | - |  | 114 |  | 414 |  | 59,526
Goodwill on acquisition of non-controlling interests | - |  | - |  | - |  | - |  | (79,673) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (79,673)
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other comprehensive income | - |  | 67,673 |  | 21 |  | - |  | (87,732) |  | - |  | (459) |  | (9) |  | (774) |  | (6,203) |  | 2,047 |  | - |  | - |  | - |  | - |  | (25,436)
Constitution (reversal) of provision for loss | - |  | - |  | 99 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 3,190 |  | 1 |  | - |  | - |  | - |  | 3,290
Discontinued operations | - |  | (25,617) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (25,617)
Ending balance (06.30.21) | 518 |  | 10,725,240 |  | - |  | 99,419 |  | 226,885 |  | 5,434 |  | 1,690 |  | 176 |  | - |  | 88,483 |  | - |  | - |  | 2,322 |  | 2,705 |  | 6,113 |  | 11,158,985

The Company owns other investments in the amount of R$583 in the parent company and in the consolidated (R$583 in the parent company and in the consolidated as of December 31, 2020).

On June 30, 2021, these associates, affiliates and joint ventures do not have any restriction to amortize their loans or advances to the Company.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 45

| 13. | PROPERTY, PLANT AND EQUIPMENT, NET

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

| Parent company
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | Transfers (2) |  | 06.30.21
Cost |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 560,856 |  | 1,760 |  | (1,399) |  | 8,091 |  | 569,308
Buildings, facilities and improvements |  |  | 9,772,665 |  | 100,166 |  | (55,290) |  | 259,272 |  | 10,076,813
Machinery and equipment |  |  | 7,864,533 |  | 91,022 |  | (141,126) |  | 16,420 |  | 7,830,849
Furniture and fixtures |  |  | 106,031 |  | 306 |  | (976) |  | 3,716 |  | 109,077
Vehicles |  |  | 209,770 |  | 1,107 |  | (2,603) |  | 546 |  | 208,820
Construction in progress |  |  | 595,353 |  | 533,902 |  | - |  | (298,616) |  | 830,639
Advances to suppliers |  |  | 923 |  | 6,756 |  | - |  | - |  | 7,679
|  |  | 19,110,131 |  | 735,019 |  | (201,394) |  | (10,571) |  | 19,633,185
Depreciation |  |  |  |  |  |  |  |  |  |  |
Land (3) | 20.97% |  | (12,648) |  | (3,498) |  | 321 |  | - |  | (15,825)
Buildings, facilities and improvements | 9.42% |  | (3,683,103) |  | (313,336) |  | 38,384 |  | (630) |  | (3,958,685)
Machinery and equipment | 6.98% |  | (4,127,347) |  | (244,999) |  | 136,900 |  | 82 |  | (4,235,364)
Furniture and fixtures | 6.67% |  | (54,722) |  | (2,559) |  | 684 |  | 547 |  | (56,050)
Vehicles | 27.27% |  | (63,753) |  | (28,057) |  | 1,504 |  | 1 |  | (90,305)
|  |  | (7,941,573) |  | (592,449) |  | 177,793 |  | - |  | (8,356,229)
|  |  | 11,168,558 |  | 142,570 |  | (23,601) |  | (10,571) |  | 11,276,956

| (1) | Weighted average annual rate.

| (2) | Refers to the transfer of R$18,662 for intangible assets and R$8,091 from assets held for sale.

| (3) | Land depreciation refers to right-of-use assets. The amount of R$2,110 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).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 46

| Consolidated
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | Business combination (2) |  | Transfers (3) |  | Exchange rate variation |  | 06.30.21
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 608,389 |  | 2,978 |  | (2,701) |  | - |  | 97,150 |  | (11,697) |  | 694,119
Buildings, facilities and improvements |  |  | 10,444,526 |  | 261,740 |  | (62,938) |  | 17,343 |  | 170,311 |  | (58,550) |  | 10,772,432
Machinery and equipment |  |  | 8,395,520 |  | 95,076 |  | (151,282) |  | 30,725 |  | 32,859 |  | (40,219) |  | 8,362,679
Furniture and fixtures |  |  | 157,085 |  | 510 |  | (1,614) |  | 411 |  | 3,899 |  | (6,366) |  | 153,925
Vehicles |  |  | 346,218 |  | 22,240 |  | (23,129) |  | 111 |  | 548 |  | (11,307) |  | 334,681
Construction in progress |  |  | 608,255 |  | 571,446 |  | - |  | - |  | (315,190) |  | (239) |  | 864,272
Advances to suppliers |  |  | 12,748 |  | 22,443 |  | - |  | - |  | (155) |  | (3,189) |  | 31,847
|  |  | 20,572,741 |  | 976,433 |  | (241,664) |  | 48,590 |  | (10,578) |  | (131,567) |  | 21,213,955
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land (4) | 15.34% |  | (13,800) |  | (4,634) |  | 1,566 |  | - |  | (11,335) |  | (52) |  | (28,255)
Buildings, facilities and improvements | 9.09% |  | (3,851,225) |  | (423,091) |  | 45,628 |  | (4,573) |  | 10,705 |  | 16,685 |  | (4,205,871)
Machinery and equipment | 6.93% |  | (4,304,007) |  | (265,902) |  | 140,927 |  | (13,519) |  | 82 |  | 18,676 |  | (4,423,743)
Furniture and fixtures | 6.66% |  | (79,924) |  | (5,738) |  | 1,041 |  | (259) |  | 546 |  | 3,363 |  | (80,971)
Vehicles | 25.25% |  | (108,205) |  | (44,517) |  | 14,516 |  | (111) |  | 1 |  | (118) |  | (138,434)
|  |  | (8,357,161) |  | (743,882) |  | 203,678 |  | (18,462) |  | (1) |  | 38,554 |  | (8,877,274)
|  |  | 12,215,580 |  | 232,551 |  | (37,986) |  | 30,128 |  | (10,579) |  | (93,013) |  | 12,336,681

| (1) | Weighted average annual rate.

| (2) | Acquisition of Joody Al Sharqiya Food Production Factory (note 1.2).

| (3) | Refers to the transfer of R$18,669 for intangible assets and R$8,091 from held for sale.

| (4) | Land depreciation refers to right-of-use assets. The amount of R$2,110 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).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 47

The amount of capitalized borrowing costs during the six-month period ended on June 30, 2021 was of R$23,342 in the parent company and in the consolidated (R$8,388 in the parent company and in the consolidated in the same period of the previous year) and during the three-month period ended on June 30, 2021 was of R$13,159 in the parent company and in the consolidated (R$4,330 in the parent company and in the consolidated in the same period of the previous year).

The weighted average rate used to determine the amount of borrowing costs subject to capitalization was 6.97% p.a. in the parent company and in the consolidated (6.09% p.a. in the parent company and in the consolidated in the same period of the previous year).

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 and Consolidated
|  | Type of collateral |  | 06.30.21 |  | 12.31.20
Land |  | Financial/Tax |  | 168,344 |  | 223,918
Buildings, facilities and improvements |  | Financial/Tax |  | 1,224,315 |  | 1,491,531
Machinery and equipment |  | Financial/Labor/Tax/Civil |  | 1,286,756 |  | 1,470,295
Furniture and fixtures |  | Financial/Tax |  | 15,040 |  | 15,700
Vehicles |  | Financial/Tax |  | 335 |  | 294
|  |  |  | 2,694,790 |  | 3,201,738

| 14. | INTANGIBLE ASSETS

The intangible assets rollforward is set forth below:

|  |  | Parent company
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | Transfers |  | 06.30.21
Cost |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,783,655 |  | - |  | - |  | - |  | 1,783,655
Trademarks |  |  | 1,152,885 |  | - |  | - |  | - |  | 1,152,885
Non-compete agreement |  |  | 71,764 |  | 378 |  | (3,079) |  | - |  | 69,063
Outgrowers relationship |  |  | 5,328 |  | 197 |  | - |  | - |  | 5,525
Patents |  |  | 6,205 |  | - |  | (3,720) |  | - |  | 2,485
Software |  |  | 613,041 |  | 5,214 |  | (1,063) |  | 101,432 |  | 718,624
Intangible in progress |  |  | 45,918 |  | 100,120 |  | - |  | (82,770) |  | 63,268
|  |  | 3,678,796 |  | 105,909 |  | (7,862) |  | 18,662 |  | 3,795,505
Amortization |  |  |  |  |  |  |  |  |  |  |
Non-compete agreement | 49.87% |  | (69,089) |  | (1,767) |  | 3,079 |  | - |  | (67,777)
Outgrowers relationship | 15.29% |  | (4,695) |  | (315) |  | - |  | - |  | (5,010)
Patents | 10.00% |  | (5,997) |  | (12) |  | 3,720 |  | - |  | (2,289)
Software | 41.60% |  | (412,539) |  | (100,107) |  | 595 |  | - |  | (512,051)
|  |  | (492,320) |  | (102,201) |  | 7,394 |  | - |  | (587,127)
|  |  | 3,186,476 |  | 3,708 |  | (468) |  | 18,662 |  | 3,208,378

| (1) | Weighted average annual rate.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 48

|  |  | Consolidated
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | Business combination (2) |  | Transfers |  | Exchange rate variation | 06.30.21
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 2,935,577 |  | - |  | (6,145) |  | 12,378 |  | - |  | (63,430) | 2,878,380
Trademarks |  |  | 1,327,738 |  | - |  | - |  | - |  | - |  | (31,203) | 1,296,535
Non-compete agreement |  |  | 107,162 |  | 378 |  | (3,079) |  | - |  | - |  | (1,855) | 102,606
Outgrowers relationship |  |  | 5,328 |  | 197 |  | - |  | - |  | - |  | - | 5,525
Patents |  |  | 6,205 |  | - |  | (3,723) |  | - |  | - |  | 3 | 2,485
Customer relationship |  |  | 1,067,713 |  | - |  | - |  | - |  | - |  | (85,797) | 981,916
Software |  |  | 657,255 |  | 5,218 |  | (1,063) |  | - |  | 101,767 |  | (3,456) | 759,721
Intangible in progress |  |  | 46,054 |  | 100,526 |  | - |  | - |  | (83,098) |  | (27) | 63,455
|  |  | 6,153,032 |  | 106,319 |  | (14,010) |  | 12,378 |  | 18,669 |  | (185,765) | 6,090,623
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-compete agreement | 15.29% |  | (97,408) |  | (5,428) |  | 3,079 |  | - |  | - |  | 1,791 | (97,966)
Outgrowers relationship | 15.29% |  | (4,695) |  | (315) |  | - |  | - |  | - |  | - | (5,010)
Patents | 10.00% |  | (5,999) |  | (12) |  | 3,723 |  | - |  | - |  | (1) | (2,289)
Customer relationship | 7.39% |  | (375,131) |  | (40,321) |  | - |  | - |  | - |  | 30,672 | (384,780)
Software | 41.21% |  | (449,697) |  | (102,046) |  | 594 |  | - |  | - |  | 2,844 | (548,305)
|  |  | (932,930) |  | (148,122) |  | 7,396 |  | - |  | - |  | 35,306 | (1,038,350)
|  |  | 5,220,102 |  | (41,803) |  | (6,614) |  | 12,378 |  | 18,669 |  | (150,459) | 5,052,273

| (1) | Weighted average annual rate.

| (2) | Acquisition of Joody Al Sharqiya Food Production Factory (note 1.2)

During the six-month period ended on June 30, 2021, Management did not identify any event that could indicate an impairment of such assets.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 49

| 15. | LOANS AND BORROWINGS

| Parent company
| Charges (p.a.) |  | Average rate (1) |  | WAMT (2) |  | 12.31.20 |  | Borrowing |  | Amortization |  | Interest paid |  | Interest accrued |  | Exchange rate variation |  | 06.30.21
Local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital | Fixed |  | 3.25% (3.25% on 12.31.20) |  | 0.1 |  | 368,681 |  | - |  | (41,474) |  | (798) |  | 5,483 |  | - |  | 331,892
Certificate of agribusiness receivables (3) | IPCA |  | 13.96% (10.21% on 12.31.20) |  | 2.5 |  | 821,093 |  | - |  | - |  | 95 |  | 64,667 |  | - |  | 885,855
Export credit facility (4) | CDI / USD |  | 4.76% (3.69% on 12.31.20) |  | 4.1 |  | 2,408,697 |  | - |  | - |  | (55,921) |  | 54,521 |  | (72,732) |  | 2,334,565
Debentures | CDI / IPCA |  | 12.69% (8.28% on 12.31.20) |  | 7.4 |  | 3,022,005 |  | 965,691 |  | - |  | (79,353) |  | 228,743 |  | - |  | 4,137,086
Fiscal incentives | Fixed |  | 2.40% (2.40% on 12.31.20) |  | - |  | 44,816 |  | 45,664 |  | (37,319) |  | (398) |  | 406 |  | - |  | 53,169
|  |  |  |  |  |  | 6,665,292 |  | 1,011,355 |  | (78,793) |  | (136,375) |  | 353,820 |  | (72,732) |  | 7,742,567
Foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds | Fixed / USD / EUR |  | 4.82% (4.91% on 12.31.20) |  | 13.0 |  | 12,252,326 |  | - |  | (297,141) |  | (410,086) |  | 393,616 |  | (497,106) |  | 11,441,609
Export credit facility | Fixed / LIBOR / USD |  | 3.06% (3.13% on 12.31.20) |  | 1.3 |  | 392,636 |  | - |  | (135,668) |  | (6,649) |  | 5,552 |  | (3,930) |  | 251,941
|  |  |  |  |  |  | 12,644,962 |  | - |  | (432,809) |  | (416,735) |  | 399,168 |  | (501,036) |  | 11,693,550
|  |  |  |  |  |  | 19,310,254 |  | 1,011,355 |  | (511,602) |  | (553,110) |  | 752,988 |  | (573,768) |  | 19,436,117
Current |  |  |  |  |  |  | 811,919 |  |  |  |  |  |  |  |  |  |  |  | 2,182,461
Non-current |  |  |  |  |  |  | 18,498,335 |  |  |  |  |  |  |  |  |  |  |  | 17,253,656

| (1) | Weighted average annual rate.

| (2) | Weighted average maturity in years.

| (3) | The Certificates of Agribusiness Receivables (“CRA”) issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.

| (4) | The Export Credit Facility was 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.

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 50

| Consolidated
| Charges (p.a.) |  | Average rate (1) |  | WAMT (2) |  | 12.31.20 |  | Borrowing |  | Amortization |  | Interest paid |  | Interest accrued |  | Exchange rate variation |  | 06.30.21
Local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital | Fixed |  | 3.25% (3.25% on 12.31.20) |  | 0.1 |  | 368,681 |  | - |  | (41,474) |  | (798) |  | 5,483 |  | - |  | 331,892
Certificate of agribusiness receivables (3) | IPCA |  | 13.96% (10.21% on 12.31.20) |  | 2.5 |  | 821,093 |  | - |  | - |  | 95 |  | 64,667 |  | - |  | 885,855
Debentures | CDI / IPCA |  | 12.69% (8.28% on 12.31.20) |  | 7.4 |  | 3,022,005 |  | 965,691 |  | - |  | (79,353) |  | 228,743 |  | - |  | 4,137,086
Export credit facility (4) | CDI / USD |  | 4.76% (3.69% on 12.31.20) |  | 4.1 |  | 2,408,697 |  | - |  | - |  | (55,921) |  | 54,521 |  | (72,732) |  | 2,334,565
Fiscal incentives | Fixed |  | 2.40% (2.40% on 12.31.20) |  | - |  | 44,816 |  | 45,664 |  | (37,319) |  | (398) |  | 406 |  | - |  | 53,169
|  |  |  |  |  |  | 6,665,292 |  | 1,011,355 |  | (78,793) |  | (136,375) |  | 353,820 |  | (72,732) |  | 7,742,567
Foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds | Fixed / USD / EUR |  | 4.82% (4.81% on 12.31.20) |  | 11.9 |  | 14,829,993 |  | - |  | (297,141) |  | (471,752) |  | 455,643 |  | (589,024) |  | 13,927,719
Export credit facility | Fixed / LIBOR / USD |  | 3.06% (3.13% on 12.31.20) |  | 1.3 |  | 392,636 |  | - |  | (135,668) |  | (6,649) |  | 5,552 |  | (3,930) |  | 251,941
Working capital | Fixed / TRY |  | 13.66% (10.98% on 12.31.20) |  | 1.9 |  | 516,505 |  | 252,868 |  | (27,757) |  | (31,579) |  | 37,630 |  | (114,711) |  | 632,956
|  |  |  |  |  |  | 15,739,134 |  | 252,868 |  | (460,566) |  | (509,980) |  | 498,825 |  | (707,665) |  | 14,812,616
|  |  |  |  |  |  | 22,404,426 |  | 1,264,223 |  | (539,359) |  | (646,355) |  | 852,645 |  | (780,397) |  | 22,555,183
Current |  |  |  |  |  |  | 1,059,984 |  |  |  |  |  |  |  |  |  |  |  | 2,530,352
Non-current |  |  |  |  |  |  | 21,344,442 |  |  |  |  |  |  |  |  |  |  |  | 20,024,831

| (1) | Weighted average annual rate.

| (2) | Weighted average maturity in years.

| (3) | The Certificate of Agribusiness Receivable (“CRA”) issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.

| (4) | The Export Credit Facility was 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.

On June 30, 2021 and on December 31, 2020 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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 51

| 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 27, 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. 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 June 30, 2021, the credit facilities were available, but unused.

| 15.2. | Issuance of debentures

On June 02, 2021, 1,000,000 (one million) Debentures were subscribed with a notional value of R$ 1,000.00 (one thousand Brazilian Reais), in a total amount of R$1,000,000 (one billion Brazilian Reais), in a single serie. The Debentures are simple, not convertible into shares, unsecured and for private placement. The Debentures were privately placed with VERT Companhia Securitizadora, to back its sixtieth issuance of Agribusiness Receivables Certificates which were object of public distribution with restricted placement efforts.

Parent company and Consolidated
06.30.21
Operation |  | Series |  | Issue date |  | Maturity |  | Rate |  | Notional |  | Updated Value
Debenture - 3rd Issue |  | 1st Series |  | 06.02.21 |  | 05.14.31 |  | IPCA + 4.78% p.a. |  | 1,000,000 |  | 980,044

The issuance costs of R$34,258 are recognized on the statement of income over the term of the debt according to the effective interest rate method.

| 15.3. | Senior Notes repurchase offer

During June 2021, the Company made an offer to repurchase its 4.875% Senior Notes due on 2030, in which it repurchased the principal amount equivalent to R$297,141 (USD59,402). The Company paid the amount of R$317,532 for the repurchase of these liabilities, amount that includes principal, interest and premium. The Company incurred in financial expenses in the amount of R$14,114 with the premium paid, R$2,491 with taxes and R$3,089 with the write-off of the costs of issuance. The principal outstanding after the repurchase is equivalent to R$3,454,509 (USD690,598).

| 15.4. | Guarantees

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Total loans and borrowings | 19,436,117 |  | 19,310,254 |  | 22,555,183 |  | 22,404,426
Mortgage guarantees | 53,169 |  | 44,816 |  | 53,169 |  | 44,816
Related to tax incentives and other | 53,169 |  | 44,816 |  | 53,169 |  | 44,816

On June 30, 2021, the amount of bank guarantees contracted by the Company was of R$604,571 (R$590,933 as of December 31, 2020) which were offered mainly in litigations involving the Company’s use of tax credits. These guarantees have an average cost of 1.96% p.a. (1.95% p.a. as of December 31, 2020).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 52

| 16. | TRADE ACCOUNTS PAYABLE

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Domestic suppliers |  |  |  |  |  |  |
Third parties | 8,152,589 |  | 7,596,325 |  | 8,185,831 |  | 7,611,170
Related parties | 30,646 |  | 13,100 |  | - |  | -
| 8,183,235 |  | 7,609,425 |  | 8,185,831 |  | 7,611,170
Foreign suppliers |  |  |  |  |  |  |
Third parties | 752,571 |  | 648,960 |  | 1,674,937 |  | 1,487,206
| 752,571 |  | 648,960 |  | 1,674,937 |  | 1,487,206
(-) Adjustment to present value | (96,157) |  | (88,373) |  | (96,179) |  | (88,389)
| 8,839,649 |  | 8,170,012 |  | 9,764,589 |  | 9,009,987
Current | 8,826,451 |  | 8,156,231 |  | 9,751,391 |  | 8,996,206
Non-current | 13,198 |  | 13,781 |  | 13,198 |  | 13,781

Within the trade accounts payable balance as of June 30, 2021, R$2,997,587 in the parent company and R$3,141,581 in the consolidated (R$2,510,757 in the parent company and R$2,576,071 in the consolidated as of December 31, 2020) correspond to supply chain finance transactions in which there were no changes in the payment terms and prices negotiated with the suppliers.

| 17. | SUPPLY CHAIN FINANCE

Parent company and Consolidated
|  | 06.30.21 |  | 12.31.20
Supply chain finance - Domestic suppliers |  | 1,339,392 |  | 1,309,167
Supply chain finance - Foreign suppliers |  | 131,761 |  | 165,060
|  | 1,471,153 |  | 1,474,227
(-) Adjustment to present value |  | (20,545) |  | (21,590)
|  | 1,450,608 |  | 1,452,637

The Company has agreements with several financial institutions that allow the suppliers to anticipate their receivables. The suppliers may choose whether to participate and if so, with which institution. The anticipation allows the suppliers to better manage their cash flow needs. This flexibility allows the Company to intensify its commercial relations with the network of suppliers by potentially leveraging benefits such as preference for 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 the ones in which there were changes in the payment terms and prices negotiated with the suppliers.

On June 30, 2021, the discount rates applied to the supply chain finance transactions agreed between our suppliers and the financial institutions in the domestic market were set between 0.41% and 0.70% p.m. (0.38% to 0.47% p.m. on December 31, 2020).

On June 30, 2021, the discount rates applied to the supply chain finance transactions agreed between our suppliers and the financial institutions in the external market were set between 0.18% and 0.39% p.m. (0.18% to 0.40% p.m. on December 31, 2020).

| 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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 53

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
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | 06.30.21
Cost |  |  |  |  |  |  |  |  |
Land |  |  | 45,592 |  | 1,609 |  | (975) |  | 46,226
Buildings |  |  | 2,642,544 |  | 100,087 |  | (41,943) |  | 2,700,688
Machinery and equipment |  |  | 112,195 |  | 87,812 |  | (98,516) |  | 101,491
Vehicles |  |  | 201,924 |  | 1,107 |  | (1,786) |  | 201,245
Software |  |  | 74,582 |  | 5,214 |  | (64) |  | 79,732
|  |  | 3,076,837 |  | 195,829 |  | (143,284) |  | 3,129,382
Depreciation |  |  |  |  |  |  |  |  |
Land | 15.28% |  | (12,376) |  | (3,459) |  | 320 |  | (15,515)
Buildings | 27.37% |  | (848,016) |  | (209,267) |  | 31,089 |  | (1,026,194)
Machinery and equipment | 68.76% |  | (107,089) |  | (30,023) |  | 98,327 |  | (38,785)
Vehicles | 27.76% |  | (57,575) |  | (27,816) |  | 888 |  | (84,503)
Software | 42.19% |  | (33,048) |  | (14,213) |  | 64 |  | (47,197)
|  |  | (1,058,104) |  | (284,778) |  | 130,688 |  | (1,212,194)
|  |  | 2,018,733 |  | (88,949) |  | (12,596) |  | 1,917,188

| (1) | Weighted average annual rate.

| Consolidated
| Average rate (1) |  | 12.31.20 |  | Additions |  | Disposals |  | Transfers |  | Exchange rate variation |  | 06.30.21
Cost |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 48,661 |  | 1,941 |  | (1,521) |  | 89,060 |  | (4,244) |  | 133,897
Buildings |  |  | 2,861,916 |  | 261,391 |  | (48,528) |  | (89,060) |  | (18,935) |  | 2,966,784
Machinery and equipment |  |  | 112,593 |  | 87,812 |  | (98,623) |  | - |  | 318 |  | 102,100
Vehicles |  |  | 344,918 |  | 22,217 |  | (23,086) |  | - |  | (7,272) |  | 336,777
Software |  |  | 74,582 |  | 5,214 |  | (64) |  | - |  | - |  | 79,732
|  |  | 3,442,670 |  | 378,575 |  | (171,822) |  | - |  | (30,133) |  | 3,619,290
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |
Land | 8.74% |  | (13,526) |  | (4,596) |  | 827 |  | (11,335) |  | 687 |  | (27,943)
Buildings | 25.53% |  | (914,816) |  | (310,071) |  | 37,498 |  | 11,335 |  | 9,142 |  | (1,166,912)
Machinery and equipment | 68.45% |  | (107,316) |  | (30,120) |  | 98,398 |  | - |  | (246) |  | (39,284)
Vehicles | 25.52% |  | (101,495) |  | (44,212) |  | 11,790 |  | - |  | 1,888 |  | (132,029)
Software | 42.22% |  | (33,048) |  | (14,212) |  | 64 |  | - |  | - |  | (47,196)
|  |  | (1,170,201) |  | (403,211) |  | 148,577 |  | - |  | 11,471 |  | (1,413,364)
|  |  | 2,272,469 |  | (24,636) |  | (23,245) |  | - |  | (18,662) |  | 2,205,926

| (1) | Weighted average annual rate.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 54

| 18.2. | Lease liabilities

| Parent company
| WAM (1) |  | 12.31.20 |  | Additions |  | Payments |  | Interest paid |  | Interest accrued |  | Disposals |  | 06.30.21
Land | 6.8 |  | 35,934 |  | 1,609 |  | (2,299) |  | (2,170) |  | 2,170 |  | (673) |  | 34,571
Buildings | 6.8 |  | 2,033,405 |  | 100,087 |  | (209,052) |  | (41,480) |  | 74,461 |  | (16,930) |  | 1,940,491
Machinery and equipment | 1.5 |  | 3,591 |  | 87,812 |  | (28,573) |  | (1,725) |  | 1,725 |  | - |  | 62,830
Vehicles | 2.3 |  | 152,554 |  | 1,107 |  | (26,909) |  | (6,028) |  | 6,028 |  | (998) |  | 125,754
Software | 1.5 |  | 43,210 |  | 5,214 |  | (14,418) |  | (1,389) |  | 1,389 |  | - |  | 34,006
|  |  | 2,268,694 |  | 195,829 |  | (281,251) |  | (52,792) |  | 85,773 |  | (18,601) |  | 2,197,652
Current |  |  | 302,946 |  |  |  |  |  |  |  |  |  |  |  | 374,773
Non-current |  |  | 1,965,748 |  |  |  |  |  |  |  |  |  |  |  | 1,822,879

| (1) | Weighted average maturity in years.

| Consolidated
| WAM (1) |  | 12.31.20 |  | Additions |  | Payments |  | Interest paid |  | Interest accrued |  | Disposals |  | Transfers |  | Exchange rate variation |  | 06.30.21
Land | 4.6 |  | 37,868 |  | 1,941 |  | (2,717) |  | (3,329) |  | 3,329 |  | (713) |  | 82,851 |  | (81) |  | 119,149
Buildings | 1.9 |  | 2,195,407 |  | 261,391 |  | (284,766) |  | (60,545) |  | 93,527 |  | (16,995) |  | (82,851) |  | (28,023) |  | 2,077,145
Machinery and equipment | 0.9 |  | 3,773 |  | 87,812 |  | (28,676) |  | (1,733) |  | 1,733 |  | (34) |  | - |  | 87 |  | 62,962
Vehicles | 1.8 |  | 256,423 |  | 22,217 |  | (42,935) |  | (9,434) |  | 9,434 |  | (1,492) |  | - |  | (18,344) |  | 215,869
Software | 1.5 |  | 43,210 |  | 5,214 |  | (14,418) |  | (1,389) |  | 1,389 |  | - |  | - |  | - |  | 34,006
|  |  | 2,536,681 |  | 378,575 |  | (373,512) |  | (76,430) |  | 109,412 |  | (19,234) |  | - |  | (46,361) |  | 2,509,131
Current |  |  | 383,162 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 480,526
Non-current |  |  | 2,153,519 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,028,605

| (1) | Weighted average maturity in years.

| 18.3. | Lease liabilities maturity schedule

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

| Parent company |  | Consolidated
| 06.30.21 |  | 06.30.21
Current | 374,773 |  | 480,526
Non-current | 1,822,879 |  | 2,028,605
July to december 2022 | 217,096 |  | 254,436
2023 | 355,781 |  | 414,242
2024 | 284,725 |  | 304,001
2025 | 207,704 |  | 220,223
2026 onwards | 757,573 |  | 835,703
| 2,197,652 |  | 2,509,131

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 55

| 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:

|  | 06.30.21 |  | 12.31.20
Contract Terms |  | Nominal rate % p.a. |  | Real rate % p.a. |  | Nominal rate % p.a. |  | Real rate % p.a.
1 year |  | 4.92% |  | 0.43% |  | 5.69% |  | 1.05%
2 years |  | 4.74% |  | 0.42% |  | 5.96% |  | 2.61%
3 years |  | 6.31% |  | 2.14% |  | 6.80% |  | 2.53%
4 years |  | 7.15% |  | 2.90% |  | 8.50% |  | 4.56%
5 years |  | 9.68% |  | 4.84% |  | 8.98% |  | 4.40%
6 years |  | 10.61% |  | 5.15% |  | - |  | -
8 years |  | - |  | - |  | 10.47% |  | 5.71%
9 years |  | - |  | - |  | 10.75% |  | 5.97%
10 years |  | - |  | - |  | 11.39% |  | 6.64%
12 years |  | 9.85% |  | 5.55% |  | - |  | -
13 years |  | - |  | - |  | 11.68% |  | 7.38%
14 years |  | - |  | - |  | 11.84% |  | 7.13%
20 years |  | - |  | - |  | 13.26% |  | 9.00%

The nominal rates presented above as of June 30, 2021 refer to the incremental borrowing rates used in contracts recognized in the first half of 2021 and the rates as of December 31, 2020 refer to the rates used in contracts recognized during the year ended on December 31, 2020.

| 18.5. | Amounts recognized in the statement of income

The amounts directly recognized in the statement of income presented below relate to items exempt of recognition: low-value assets, short-term leases and leases with variable payments.

|  | Parent Company |  | Consolidated
|  | 2021 |  | 2021 |
|  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |
Variable payments not included in the lease liabilities |  | 16,397 |  | 30,850 |  | 67,783 |  | 152,410 |
Expenses related to short-term leases |  | 13,646 |  | 27,322 |  | 39,579 |  | 92,095 |
Expenses related to low-value assets |  | 796 |  | 1,381 |  | 796 |  | 1,455 |
|  | 30,839 |  | 59,553 |  | 108,158 |  | 245,960 |

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 56

| 19. | SHARE-BASED PAYMENT

The rules of stock options and restricted shares plans granted to executives were disclosed in the financial statements for the year ended December 31, 2020 (note 19).

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

Date |  | Quantity |  | Grant (1)
Grant |  | Vesting date |  | Shares granted |  | Outstanding shares |  | Fair value of the shares
10.01.18 |  | 10.01.21 |  | 2,311,394 |  | 867,956 |  | 21.44
07.01.19 |  | 07.01.22 |  | 1,815,649 |  | 615,195 |  | 30.61
09.16.19 |  | 10.01.22 |  | 68,605 |  | 45,736 |  | 30.61
06.01.20 |  | 06.01.23 |  | 3,571,736 |  | 2,172,341 |  | 21.28
|  |  |  | 7,767,384 |  | 3,701,228 |  |

| (1) | Amounts expressed in Brazilian Reais.

The rollforward of the granted options and shares for the six-month period ended on June 30, 2021, is presented as follows:

|  | Consolidated
Outstanding options/stocks as of December 31, 2020 (1) |  | 7,873,348
Exercised / Delivered: |  |
Restricted stocks – grant of June, 2020 |  | (457,939)
Restricted stocks – grant of June, 2019 |  | (114,271)
Restricted stocks – grant of July, 2019 |  | (110,070)
Forfeiture (2) : |  |
Restricted stocks – grant of June, 2020 |  | (829,367)
Restricted stocks – grant of June, 2019 |  | (113,582)
Restricted stocks - grant of July, 2019 |  | (118,397)
Restricted stocks - grant of October, 2018 |  | (8,164)
Expired: |  |
Stock options - grant of April, 2016 |  | (1,275,000)
Stock options - grant of May, 2016 |  | (1,145,330)
Outstanding options/stocks as of June 30, 2021 |  | 3,701,228

| (1) | Includes stock options outstanding on December 31, 2020, as presented in the financial statements for the year of 2020.

| (2) | 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$207,110 (R$223,191 as of December 31, 2020) and in the amount of R$16,066 under non-current liabilities (R$21,521 as of December 31, 2020). In the statement of income for the six-month ended June 30, 2021 the amount recognized as expense was R$19,378 in the parent company and R$27,325 in the consolidated (R$14,308 in the same period of the previous year in the parent company and in the consolidated), and during the three-month period ended on June 30, 2021 the amount recognized as expense reversals was R$931 in the parent company and expense of R$7,016 in the consolidated (expense of R$11,626 in the parent company and in the consolidated in the same period of the previous year).

| 20. | EMPLOYEES BENEFITS PLANS

The Company offers pension and other post-employment plans to the employees. The characteristics of such benefits were disclosed in the annual financial statements for the year ended on December 31, 2020 (note 20) and have not been changed during the following periods. The actuarial liabilities are presented below:

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 57

| Parent company |  | Consolidated
| Liabilities |  | Liabilities
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Medical assistance | 192,790 |  | 185,802 |  | 192,790 |  | 185,802
F.G.T.S. Penalty (1) | 290,085 |  | 282,229 |  | 290,085 |  | 282,229
Award for length of service | 112,236 |  | 108,908 |  | 112,236 |  | 108,908
Other | 61,651 |  | 59,854 |  | 199,054 |  | 199,616
| 656,762 |  | 636,793 |  | 794,165 |  | 776,555
Current | 114,938 |  | 114,938 |  | 124,508 |  | 125,230
Non-current | 541,824 |  | 521,855 |  | 669,657 |  | 651,325

| (1) | FGTS – Government Severance Indemnity Fund for Employees

The Company estimated costs for pension and post-employment plans for the year of 2021, according to an appraisal report prepared in 2020 by an actuarial expert and recorded in the statement of income for six-month ended June 30, 2021 against other comprehensive income a gain of R$8,099 in the parent company and R$8,035 in consolidated, net of taxes (R$13,035 in the parent company and R$12,964 in consolidated in the same period of the previous year) and for the three-month period ended on June 30, 2021 a gain of R$4,199 in the parent company and R$4,181 in consolidated, net of taxes (R$6,647 in the parent company and R$6,623 in consolidated in the same period of the previous year).

| 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, tax, social security, labor, commercial and other processes.

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

| 21.1. | Contingencies with probable losses

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

| Parent company
|  |  |  |  |  |  |  |  | 06.30.21
| Tax | Labor | Civil, commercial and other | Contingent liabilities (1) | Total
Beginning balance | 427,166 |  | 631,025 |  | 342,707 |  | 297,097 |  | 1,697,995
Additions | 123,623 |  | 128,643 |  | 18,916 |  | - |  | 271,182
Reversals | (24,449) |  | (75,121) |  | (34,053) |  | (192,865) |  | (326,488)
Payments | (116,443) |  | (132,023) |  | (11,586) |  | - |  | (260,052)
Interest | 24,008 |  | 58,394 |  | 53,491 |  | - |  | 135,893
Ending balance | 433,905 |  | 610,918 |  | 369,475 |  | 104,232 |  | 1,518,530
Current |  |  |  |  |  |  |  |  | 884,305
Non-current |  |  |  |  |  |  |  |  | 634,225

| (1) | Contingent liabilities recognized at fair value as of the acquisition date, arising from the business combination with Sadia. The reversals in the period refer mainly to the closing of the processes related to ICMS credits in the context of the “Guerra Fiscal” (note 21.2.1 of the 2020 financial statements).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 58

| Consolidated
|  |  |  |  |  |  |  |  | 06.30.21
| Tax | Labor | Civil, commercial and other | Contingent liabilities (1) | Total
Beginning balance | 427,302 |  | 634,706 |  | 343,530 |  | 297,182 |  | 1,702,720
Additions | 123,623 |  | 129,230 |  | 18,988 |  | - |  | 271,841
Reversals | (24,449) |  | (75,708) |  | (34,621) |  | (192,865) |  | (327,643)
Payments | (116,443) |  | (132,023) |  | (11,586) |  | - |  | (260,052)
Interest | 24,008 |  | 58,394 |  | 53,491 |  | - |  | 135,893
Exchange rate variation | (21) |  | (664) |  | (92) |  | (13) |  | (790)
Ending balance | 434,020 |  | 613,935 |  | 369,710 |  | 104,304 |  | 1,521,969
Current |  |  |  |  |  |  |  |  | 887,520
Non-current |  |  |  |  |  |  |  |  | 634,449

| (1) | Contingent liabilities recognized at fair value as of the acquisition date, arising from the business combination with Sadia. The reversals in the period refer mainly to the closing of the processes related to ICMS credits in the context of the “Guerra Fiscal” (note 21.2.1 of the 2020 financial statements).

| 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. Such contingencies have the same characteristics of those disclosed in the 2020 financial statements and on June 30, 2021 had balances of, R$1,590,207 (R$1,523,987 on December 31, 2020) for civil risks, R$251,314 (R$197,097 on December 31, 2020) for labor risks and R$12,877,629 (R$12,536,528 on December 31, 2020) for tax risks, for which only those resulting from the business combination with Sadia have a provision, recorded at the fair value estimated on the date of the business combination, in the amount of R$104,304 (R$297,182 as of December 31, 2020).

| 22. | EQUITY

| 22.1. | Capital stock

On June 30, 2021, the subscribed and paid capital of the Company was R$12,553,418, which is composed of 812,473,246 common book-entry shares with no par value. The value of the capital stock is net of the public offering expenses of R$92,947, made on July 22, 2009.

The Company is authorized to increase the capital stock, irrespective of amendment to the bylaws, up to the limit of 1,000,000,000 (one billion) common book-entry shares with no par value.

| 22.1.1. | Breakdown of capital stock by nature

Parent company
| 06.30.21 |  | 12.31.20
Common shares | 812,473,246 |  | 812,473,246
Treasury shares | (4,083,804) |  | (4,766,084)
Outstanding shares | 808,389,442 |  | 807,707,162

| 22.1.2. | Rollforward of outstanding shares

On June 30, 2021, the quantity of outstanding of shares was 808,389,442, on these quarter were delivered of 682.280 shares, in accordance with Restricted Share plan of Company.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 59

Parent company
Quantity of outstanding of shares
|  | 06.30.21 |
Shares at the beginning of the period |  | 807,707,162 |
Delivery of restricted shares |  | 682,280 |
Shares at the end of the period |  | 808,389,442 |

| 22.2. | Capital reserves and Other equity transactions

The balances of Capital reserves and Other equity transactions were restated for better presentation of the transactions within each line item. In the current presentation, 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”).

Parent company and Consolidated
|  | 06.30.21 |  | 12.31.20
Capital reserves |  | 141,834 |  | 141,834
Other equity transactions |  | (87,028) |  | 246
Share-based payments |  | 207,110 |  | 214,711
Acquisition of non-controlling entities |  | (293,918) |  | (214,245)
Capital transactions with controlling entities |  | (220) |  | (220)
|  | 54,806 |  | 142,080

| 22.3. | Treasury shares

The Company has 4,083,804 shares held in treasury, with an average cost of R$26.00 (twenty-six Brazilian Reais) per share, and corresponding market value of R$111,610, on these quarter were delivered of 682.280 shares, in accordance with Restricted Share plan of Company.

Parent company
Quantity of outstanding of shares
|  | 06.30.21 |
Shares at the beggining of the period |  | 4,766,084 |
Delivery of restricted shares |  | (682,280) |
Shares at the end of the period |  | 4,083,804 |

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 60

| 23. | EARNINGS (LOSS) PER SHARE

| Continued operations
|  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Basic numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (202,856) |  | (178,414) |  | 303,870 |  | 257,949
Basic denominator |  |  |  |  |  |  |
Common shares | 812,473,246 |  | 812,473,246 |  | 812,473,246 |  | 812,473,246
Weighted average number of outstanding shares - basic (except treasury shares) | 807,934,252 |  | 807,820,708 |  | 809,612,517 |  | 810,672,698
Net earnings (loss) per share basic - R$ | (0.25) |  | (0.22) |  | 0.38 |  | 0.32
Diluted numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (202,856) |  | (178,414) |  | 303,870 |  | 257,949
Diluted denominator |  |  |  |  |  |  |
Weighted average number of outstanding shares - basic (except treasury shares) | 807,934,252 |  | 807,820,708 |  | 809,612,517 |  | 810,672,698
Number of potential shares | - |  | - |  | 262,692 |  | 262,692
Weighted average number of outstanding shares - diluted | 807,934,252 |  | 807,820,708 |  | 809,875,209 |  | 810,935,390
Net earnings (loss) per share diluted - R$ | (0.25) |  | (0.22) |  | 0.38 |  | 0.32

| Discontinued operations |  | Continued and discontinued operations
|  |  | 2021 |  |  |  | 2021
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Basic numerator |  |  |  |  |  |  |
Net earnings (loss) for the exercise attributable to controlling shareholders | (41,286) |  | (41,286) |  | (244,142) |  | (219,700)
Basic denominator |  |  |  |  |  |  |
Common shares | 812,473,246 |  | 812,473,246 |  | 812,473,246 |  | 812,473,246
Weighted average number of outstanding shares - basic (except treasury shares) | 807,934,252 |  | 807,820,708 |  | 807,934,252 |  | 807,820,708
Net earnings (loss) per share basic - R$ | (0.05) |  | (0.05) |  | (0.30) |  | (0.27)
Diluted numerator |  |  |  |  |  |  |
Net earnings (loss) for the exercise attributable to controlling shareholders | (41,286) |  | (41,286) |  | (244,142) |  | (219,700)
Diluted denominator |  |  |  |  |  |  |
Weighted average number of outstanding shares - basic (except treasury shares) | 807,934,252 |  | 807,820,708 |  | 807,934,252 |  | 807,820,708
Number of potential shares | - |  | - |  | - |  | -
Weighted average number of outstanding shares - diluted | 807,934,252 |  | 807,820,708 |  | 807,934,252 |  | 807,820,708
Net earnings (loss) per share diluted - R$ | (0.05) |  | (0.05) |  | (0.30) |  | (0.27)

| 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, as disclosed in the financial statements for the year ended on December 31, 2020.

| 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, 6 and 24.

On June 30, 2021, the Company held financial investments over R$100,000 at the following financial institutions:

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 61

ABN AMRO, Banco Bradesco, Banco BNP Paribas, Banco do Brasil, Banco BTG Pactual, Banco Itaú, Banco Safra, Banco Santander, Citibank, HSBC, J.P. Morgan Chase Bank, T.Garanti Bankasi A.Ş. and Vakiflar Bankasi.

The Company also held derivative contracts with the following financial institutions: Banco Bradesco, Banco Itaú, Banco Santander, Banco Votorantim, Bank of America Merrill Lynch, Banco BNP Paribas, Citibank, Deutsche Bank, J.P. Morgan Chase Bank, Morgan Stanley, Goldman Sachs, Rabobank and XP.

| 24.3. | Capital management and liquidity risk

As a guideline, the gross debt must be concentrated at long-term. On June 30, 2021, the long-term consolidated gross debt represented 88.28% (93.66% as of December 31, 2020) of the total gross indebtedness, which has an average term higher than nine years.

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

| Consolidated
| 06.30.21 |  | 12.31.20
| Current |  | Non-current |  | Total |  | Total
Foreign currency loans and borrowings | (1,973,829) |  | (12,838,787) |  | (14,812,616) |  | (15,739,134)
Local currency loans and borrowings | (556,523) |  | (7,186,044) |  | (7,742,567) |  | (6,665,292)
Derivative financial liabilities | (130,197) |  | (7,655) |  | (137,852) |  | (385,696)
Gross debt | (2,660,549) |  | (20,032,486) |  | (22,693,035) |  | (22,790,122)
Marketable securities and cash and cash equivalents | 7,258,252 |  | 333,034 |  | 7,591,286 |  | 8,235,360
Derivative financial assets | 276,137 |  | 9,894 |  | 286,031 |  | 377,990
Restricted cash | 24,245 |  | 1 |  | 24,246 |  | 24,358
Net debt |  |  |  |  | (14,791,472) |  | (14,152,414)

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

| Parent company
| 06.30.21
| Book value |  | Contractual cash flow |  | Up to 12 months |  | Jul - Dec 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 onwards
Non derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and borrowings | 19,436,117 |  | 31,118,415 |  | 3,272,087 |  | 943,017 |  | 3,482,346 |  | 2,553,169 |  | 1,373,685 |  | 19,494,111
Principal |  |  | 19,289,010 |  | 2,170,557 |  | 498,100 |  | 2,389,003 |  | 1,768,134 |  | 630,669 |  | 11,832,547
Interest |  |  | 11,829,405 |  | 1,101,530 |  | 444,917 |  | 1,093,343 |  | 785,035 |  | 743,016 |  | 7,661,564
Trade accounts payable | 8,839,649 |  | 8,935,806 |  | 8,922,609 |  | 4,766 |  | 5,689 |  | 2,742 |  | - |  | -
Supply chain finance | 1,450,608 |  | 1,471,153 |  | 1,471,153 |  | - |  | - |  | - |  | - |  | -
Lease liabilities | 2,197,652 |  | 2,789,634 |  | 400,445 |  | 239,780 |  | 419,874 |  | 359,035 |  | 279,853 |  | 1,090,647
Derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 2,619 |  | 2,619 |  | - |  | - |  | - |  | - |  | - |  | 2,619
Currency derivatives | 3,276 |  | 3,276 |  | 3,276 |  | - |  | - |  | - |  | - |  | -
Commodities derivatives | 131,373 |  | 131,373 |  | 126,336 |  | 5,037 |  | - |  | - |  | - |  | -

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 62

| Consolidated
| 06.30.21
| Book value |  | Contractual cash flow |  | Up to 12 months |  | Jul - Dec 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 onwards
Non derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and borrowings | 22,555,183 |  | 34,213,452 |  | 3,380,728 |  | 997,338 |  | 3,590,987 |  | 2,661,811 |  | 1,482,326 |  | 22,100,262
Principal |  |  | 21,786,518 |  | 2,170,557 |  | 498,100 |  | 2,389,003 |  | 1,768,134 |  | 630,669 |  | 14,330,055
Interest |  |  | 12,426,934 |  | 1,210,171 |  | 499,238 |  | 1,201,984 |  | 893,677 |  | 851,657 |  | 7,770,207
Trade accounts payable | 9,764,589 |  | 9,860,768 |  | 9,847,571 |  | 4,766 |  | 5,689 |  | 2,742 |  | - |  | -
Supply chain finance | 1,450,608 |  | 1,471,153 |  | 1,471,153 |  | - |  | - |  | - |  | - |  | -
Lease liabilities | 2,509,131 |  | 3,166,522 |  | 513,442 |  | 281,022 |  | 488,867 |  | 383,342 |  | 296,721 |  | 1,203,128
Derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 2,619 |  | 2,619 |  | - |  | - |  | - |  | - |  | - |  | 2,619
Currency derivatives | 3,276 |  | 3,276 |  | 3,276 |  | - |  | - |  | - |  | - |  | -
Commodities derivatives | 131,373 |  | 131,373 |  | 126,336 |  | 5,037 |  | - |  | - |  | - |  | -
Financial instruments not designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency derivatives | 584 |  | 584 |  | 584 |  | - |  | - |  | - |  | - |  | -

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

| 24.4. | Market risk management

| 24.4.1. | Interest rate risk

The indebtedness is essentially linked to the fixed coupon (R$, USD, EUR e TRY), Interbank Deposit Certificate (“CDI”), Broad Consumer Price Index (“IPCA”) and London Interbank Offered Rate (“LIBOR”). In situations of adverse market changes that result in an increase in these rates, the cost of floating-rate debt rises and on the other hand, the cost of fixed-rate debt decreases in relative terms.

Regarding the marketable securities, the Company holds, mainly, instruments indexed by the CDI for investments in Brazil and fixed coupon in USD for investments in the foreign market.

The Company’s exposure to interest rates can be assessed in notes 5 and 15.

The derivative financial instruments used to hedge the exposure to interest rates as of June 30, 2021 are shown in the table below:

06.30.21
|  |  |  |  |  |  |  |  |  |  |  |  | Fair value (R$)
Fair value hedge - Derivative instruments |  | Hedged Object |  | Maturity |  | Asset |  | Liability |  | Notional |  | Instrument |  | Object (1)
Parent company and Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |
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. |  | 705,000 | BRL |  | 5,890 |  | (925)
Interest rate swap |  | Debenture - 2nd Issue - 2nd series - IPCA + 5.60% p.a |  | 3rd Qtr. 2030 |  | IPCA + 5.60% p.a |  | CDI + 2.32% p.a. |  | 950,000 | BRL |  | (850) |  | (1,677)
|  |  |  |  |  |  |  |  |  |  |  |  | 5,040 |  | (2,602)

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

| 24.4.2. | Foreign exchange risk

This 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.

| i. | Statement of financial position exposure

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:

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 63

|  | Consolidated
|  | 06.30.21 |  | 12.31.20
Cash and cash equivalents |  | 3,465,646 |  | 2,855,979
Trade accounts receivable |  | 5,615,160 |  | 5,765,753
Trade accounts payable |  | (964,912) |  | (859,790)
Loans and borrowings |  | (13,912,681) |  | (14,947,793)
Other assets and liabilities, net |  | 95,917 |  | 225,694
Exposure of assets and liabilities in foreign currencies |  | (5,700,870) |  | (6,960,157)
Derivative financial instruments (hedge) |  | 5,832,688 |  | 6,849,947
Exposure in result, net |  | 131,818 |  | (110,210)

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

Net P&L Exposure |  | 06.30.21 |  | 12.31.20
Argentinian Peso (ARS) |  | (4,957) |  | (5,310)
Angolan kwanza (AOA) |  | 199,015 |  | -
Euros (EUR) |  | (116,545) |  | 104,539
Pound Sterling (GBP) |  | 9,027 |  | 9,394
Yen (JPY) |  | 45,585 |  | 29,976
Rubles (RUB) |  | 928 |  | (1,261)
Turkish Liras (TRY) |  | (8,550) |  | 178,906
U.S. Dollars (USD) |  | 7,315 |  | (426,454)
Total |  | 131,818 |  | (110,210)

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

The derivative financial instruments hired to hedge the foreign currency statement of financial position exposure on June 30, 2021 are not designated as hedge accounting and are set forth below:

06.30.21
Derivative instruments not designated |  | Asset |  | Liability |  | Maturity |  | Notional |  | Exercise rate |  | Fair value (R$)
Parent company |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | EUR |  | BRL |  | 3rd Qtr. 2021 |  | EUR | 265,000 |  | 5.9741 |  | 709
Non-deliverable forward |  | USD |  | BRL |  | 3rd Qtr. 2021 |  | USD | 545,000 |  | 4.9953 |  | 21,773
Non-deliverable forward |  | BRL |  | USD |  | 3rd Qtr. 2021 |  | USD | (10,000) |  | 5.3459 |  | 3,391
Futures - B3 |  | USD |  | BRL |  | 3rd Qtr. 2021 |  | USD | 317,000 |  | 4.9996 |  | 15,115
|  |  |  |  |  |  |  |  |  |  |  |  | 40,988
Subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | EUR |  | JPY |  | 3rd Qtr. 2021 |  | EUR | 18,856 |  | 132.5872 |  | (581)
Non-deliverable forward |  | USD |  | EUR |  | 3rd Qtr. 2021 |  | EUR | 75,226 |  | 1.1964 |  | 3,253
Total Consolidated |  |  |  |  |  |  |  |  |  |  |  |  | 43,660

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 64

| ii. | Operating income exposure

The derivative and non-derivative financial instruments designated as cash flow hedges for foreing exchange operating income exposure on June 30, 2021 are set forth below:

06.30.21
Cash flow hedge - Derivative instruments |  | Hedged object |  | Asset |  | Liability |  | Maturity |  | Notional |  | Designation rate |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | USD Exports |  | BRL |  | USD |  | 3rd Qtr. 2021 |  | USD | 220,000 |  | 5.3304 |  | 71,329
Collar |  | USD Exports |  | BRL |  | USD |  | 3rd Qtr. 2021 |  | USD | 56,000 |  | 5.7065 |  | 32,077
Collar |  | USD Exports |  | BRL |  | USD |  | 4th Qtr. 2021 |  | USD | 44,000 |  | 5.5772 |  | 18,538
Collar |  | USD Exports |  | BRL |  | USD |  | 1st Qtr. 2022 |  | USD | 15,000 |  | 5.9163 |  | 8,325
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 130,269
06.30.21
Cash flow hedge - Non-derivative instruments |  | Hedged object |  |  |  | Liability |  | Maturity |  | Notional |  | Designation rate |  | Fair value (1)
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |
Bond BRF SA BRFSBZ 5 7/8 (2) |  | USD Exports |  |  |  | USD |  | 2nd Qtr. 2022 |  | USD | 70,928 |  | 2.0213 |  | (395,722)
Bond BRF SA BRFSBZ 3.95 |  | USD Exports |  |  |  | USD |  | 2nd Qtr. 2023 |  | USD | 150,000 |  | 2.0387 |  | (444,525)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | (840,247)

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

| (2) | For this instrument, the initial designation was of USD150,000, however there were repurchases with corresponding revocation of the designation in the amounts of USD31,338 at the rate of 3.2408, USD9,350 at the rate of 4.1827, USD27,190 at the rate of 5.1889 e USD11,194 at the rate of 5.5714. The accumulated exchange rate variation of the revoked portions is fixed and reserved in Other Comprehensive Income until the recognition of the hedge object in the second quarter of 2022.

| iii. | Investments exposure

The Company holds investments abroad in functional currencies different than the Brazilian Real, which generate currency exposure that affects directly the Company’s Equity, in Other Comprehensive Income.

The non-derivative financial instruments designated as net investment hedge instruments on June 30, 2021 are set forth below:

06.30.21
Net investment hedge - Non-derivative instruments |  | Object (Investment) |  | Liability |  | Maturity |  | Notional |  | Rate |  | Fair value (1)
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |
Bond - BRF SA BRFSBZ 4.35 |  | Federal Foods LLC |  | USD |  | 3rd Qtr. 2026 |  | USD | 75,673 |  | 3.7649 |  | (94,315)
Bond - BRF SA BRFSBZ 4.35 |  | BRF Al Yasra Food |  | USD |  | 3rd Qtr. 2026 |  | USD | 108,757 |  | 3.7649 |  | (123,833)
Bond - BRF SA BRFSBZ 4.35 |  | Al Khan Foodstuff LLC |  | USD |  | 3rd Qtr. 2026 |  | USD | 65,570 |  | 3.7649 |  | (80,650)
|  |  |  |  |  |  |  |  |  |  |  |  | (298,798)

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 65

| 24.4.3. | Commodities price risk

The financial instruments designated as cash flow hedges and fair value hedges for the commodities price exposure on June 30, 2021 are set forth below:

06.30.21
Cash flow hedge - Derivative instruments |  | Hedged object |  | Index |  | Maturity |  | Quantity |  | Exercise rate (1) |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 3rd Qtr. 2021 |  | 5,998 | ton |  | 417.20 |  | 484
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 4th Qtr. 2021 |  | 105,000 | ton |  | 382.42 |  | 462
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 1st Qtr. 2022 |  | 29,998 | ton |  | 405.51 |  | (2,131)
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 2nd Qtr. 2022 |  | 9,999 | ton |  | 406.37 |  | 62
Collar - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 3rd Qtr. 2021 |  | 10,000 | ton |  | 439.38 |  | (2,052)
Collar - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 4th Qtr. 2021 |  | 4,990 | ton |  | 396.28 |  | 513
Collar - buy |  | Soybean purchase - floating price |  | Soybean - CBOT |  | 3rd Qtr. 2021 |  | 5,000 | ton |  | 463.82 |  | 1,656
Collar - buy |  | Soybean purchase - floating price |  | Soybean - CBOT |  | 4th Qtr. 2021 |  | 10,000 | ton |  | 447.32 |  | 4,662
Non-deliverable forward - buy |  | Corn purchase - floating price |  | Corn - CBOT |  | 3rd Qtr. 2021 |  | 3,000 | ton |  | 856.57 |  | 3,405
Non-deliverable forward - buy |  | Corn purchase - floating price |  | Corn - CBOT |  | 4th Qtr. 2021 |  | 5,999 | ton |  | 738.35 |  | 3,388
Non-deliverable forward - buy |  | Corn purchase - floating price |  | Corn - CBOT |  | 1st Qtr. 2022 |  | 2,000 | ton |  | 858.81 |  | 1,148
Collar - buy |  | Corn purchase - floating price |  | Corn - B3 |  | 3rd Qtr. 2021 |  | 7,899 | ton |  | 937.59 |  | (235)
Collar - buy |  | Corn purchase - floating price |  | Corn - B3 |  | 4th Qtr. 2021 |  | 7,899 | ton |  | 937.59 |  | 425
Collar - buy |  | Soybean oil purchase - floating price |  | Soybean oil - CBOT |  | 3rd Qtr. 2021 |  | 8,994 | ton |  | 861.86 |  | 21,491
Collar - buy |  | Soybean oil purchase - floating price |  | Soybean oil - CBOT |  | 4th Qtr. 2021 |  | 2,994 | ton |  | 794.77 |  | 7,931
|  |  |  |  |  |  |  |  |  |  |  |  | 41,209

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

06.30.21
Fair value hedge - Derivative instruments |  | Hedged object |  | Index |  | Maturity |  | Quantity |  | Exercise rate (1) |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward - sell |  | Soybean purchase - fixed price |  | Soybean - CBOT |  | 1st Qtr. 2022 |  | 15,000 | ton |  | 503.65 |  | (56)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 4th Qtr. 2021 |  | 208,511 | ton |  | 160.18 |  | (74,507)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 1st Qtr. 2022 |  | 63,077 | ton |  | 200.41 |  | (10,724)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 2nd Qtr. 2022 |  | 156,400 | ton |  | 215.50 |  | (15,941)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 3rd Qtr. 2022 |  | 39,995 | ton |  | 184.67 |  | (4,801)
Corn future - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 4th Qtr. 2021 |  | 10,800 | ton |  | 1,495.83 |  | 581
Corn future - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 1st Qtr. 2022 |  | 12,258 | ton |  | 1,674.90 |  | 615
Collar - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 3rd Qtr. 2021 |  | 29,970 | ton |  | 1,470.66 |  | (1,870)
Collar - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 4th Qtr. 2021 |  | 62,910 | ton |  | 1,649.32 |  | 4,647
Collar - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 1st Qtr. 2022 |  | 19,980 | ton |  | 1,575.00 |  | (13)
Put - Buy |  | Corn purchase - fixed price |  | Corn - B3 |  | 4th Qtr. 2021 |  | 5,994 | ton |  | 1,616.67 |  | 807
|  |  |  |  |  |  |  |  |  |  |  |  | (101,262)

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

06.30.21
Fair value hedge - Derivative instruments |  | Protection object |  | Assets |  | Liabilities |  | Maturity |  | Notional |  | Exercise rate |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 4th Qtr. 2021 |  | USD | 33,399 |  | 5.4416 |  | 11,891
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 1st Qtr. 2022 |  | USD | 20,196 |  | 5.3666 |  | 4,132
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 2nd Qtr. 2022 |  | USD | 33,705 |  | 5.6207 |  | 11,240
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 3rd Qtr. 2022 |  | USD | 7,386 |  | 5.6278 |  | 2,000
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,263

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 66

| 24.5. | Effects of hedge instruments on financial information

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

Income for the period |  |  |  |  |  |  |  |  |  | Consolidated
Apr - Jun 2021 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Net Sales |  |  |  |  |  |  |  | 11,523,458 |  | - |  | - |  | 11,523,458
Derivatives result |  |  |  | Operating Results |  | Cash flow |  | 113,443 |  | - |  | - |  | 113,443
Net Revenue |  | 26 |  |  |  |  |  | 11,636,901 |  | - |  | - |  | 11,636,901
Cost of Sales |  |  |  |  |  |  |  | - |  | (9,331,014) |  | - |  | (9,331,014)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | (79,905) |  | - |  | (79,905)
Cost of Sales |  |  |  |  |  |  |  | - |  | (9,410,919) |  | - |  | (9,410,919)
Interests on loans and borrowings |  |  |  |  |  |  |  | - |  | - |  | (430,690) |  | (430,690)
Interest Rate Derivatives result |  |  |  | Interest expenses |  | Cash flow |  | - |  | - |  | 4,254 |  | 4,254
Foreign Exchange variation on assets and liabilities |  |  |  |  |  |  |  | 858,600 |  | - |  | - |  | 858,600
Foreign Exchange Derivatives result |  |  |  | Financial Position |  | Not designated |  | (908,782) |  | - |  | - |  | (908,782)
Effects on Financial Result |  | 28 |  |  |  |  |  | (50,182) |  | - |  | (426,436) |  | (476,618)
Other Comprehensive Income |  |  |  |  |  |  |  |  |  | Consolidated
Apr - Jun 2021 |  |  |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Derivative Instruments - current |  |  |  | Operating Results |  | Cash flow |  | 165,973 |  | (88,353) |  | - |  | 77,620
Non-derivative Instruments – non-current |  |  |  | Operating Results |  | Cash flow |  | 153,567 |  | - |  | - |  | 153,567
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | 170,637 |  | - |  | - |  | 170,637
Other Comprehensive Income (1) |  |  |  |  |  |  |  | 490,177 |  | (88,353) |  | - |  | 401,824
Income for the period |  |  |  |  |  |  |  |  |  | Consolidated
Jan - Jun 2021 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Net Sales |  |  |  |  |  |  |  | 22,190,161 |  | - |  | - |  | 22,190,161
Derivatives result |  |  |  | Operating Results |  | Cash flow |  | 38,717 |  | - |  | - |  | 38,717
Net Revenue |  | 26 |  |  |  |  |  | 22,228,878 |  | - |  | - |  | 22,228,878
Cost of Sales |  |  |  |  |  |  |  | - |  | (17,611,029) |  | - |  | (17,611,029)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | (196,907) |  | - |  | (196,907)
Cost of Sales |  |  |  |  |  |  |  | - |  | (17,807,936) |  | - |  | (17,807,936)
Interests on loans and borrowings |  |  |  |  |  |  |  | - |  | - |  | (855,810) |  | (855,810)
Interest Rate Derivatives result |  |  |  | Interest expenses |  | Fair value |  | - |  | - |  | 5,040 |  | 5,040
Foreign Exchange variation on assets and liabilities |  |  |  |  |  |  |  | 266,215 |  | - |  | - |  | 266,215
Foreign Exchange Derivatives result |  |  |  | Financial Position |  | Not designated |  | (416,061) |  | - |  | - |  | (416,061)
Effects on Financial Result |  | 28 |  |  |  |  |  | (149,846) |  | - |  | (850,770) |  | (1,000,616)
Other Comprehensive Income |  |  |  |  |  |  |  |  |  | Consolidated
Jan - Jun 2021 |  |  |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Derivative Instruments - current |  |  |  | Operating Results |  | Cash flow |  | 83,494 |  | (39,932) |  | - |  | 43,562
Non-derivative Instruments – non-current |  |  |  | Operating Results |  | Cash flow |  | 42,971 |  | - |  | - |  | 42,971
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | 45,877 |  | - |  | - |  | 45,877
Other Comprehensive Income (1) |  |  |  |  |  |  |  | 172,342 |  | (39,932) |  | - |  | 132,410

| (1) | All effects are presented gross of taxes.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 67

Statement of financial position |  |  |  |  |  |  |  |  |  | Consolidated
06.30.21 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Designated derivatives |  |  |  | Operating Results |  | Cash flow / Fair value |  | 159,532 |  | (60,053) |  | 5,040 |  | 104,519
Not designated derivatives |  |  |  | Financial Position |  | Not designated |  | 43,660 |  | - |  | - |  | 43,660
Asset / (Liability) net |  |  |  |  |  |  |  | 203,192 |  | (60,053) |  | 5,040 |  | 148,179
Derivative Instruments - current (2) |  |  |  | Operating Results |  | Cash flow |  | 131,436 |  | 131,374 |  | - |  | 262,810
Non-derivative instruments – non-current |  |  |  | Operating Results |  | Cash flow |  | (840,247) |  | - |  | - |  | (840,247)
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | (298,798) |  | - |  | - |  | (298,798)
Other Comprehensive Income (1) |  |  |  |  |  |  |  | (1,007,609) |  | 131,374 |  | - |  | (876,235)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | 638,481 |  | - |  | 638,481
Inventories |  | 7 |  |  |  |  |  | - |  | 638,481 |  | - |  | 638,481

| (1) | All effects are presented gross of taxes.

| (2) | Includes R$(2,937) related to the time value of the foreign exchange option contracts, and R$641 related to the time value of the commodity options contracts.

Statement of financial position |  |  |  |  |  |  |  |  |  | Consolidated
12.31.20 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Designated derivatives |  |  |  | Operating Results |  | Cash flow / Fair value |  | 95,558 |  | (144,057) |  | - |  | (48,499)
Not designated derivatives |  |  |  | Financial Position |  | Not designated |  | 55,442 |  | - |  | (14,649) |  | 40,793
Asset / (Liability) net |  |  |  |  |  |  |  | 151,000 |  | (144,057) |  | (14,649) |  | (7,706)
Derivative Instruments - current |  |  |  | Operating Results |  | Cash flow |  | 47,942 |  | 171,306 |  | - |  | 219,248
Non-derivative instruments – non-current |  |  |  | Operating Results |  | Cash flow |  | (883,218) |  | - |  | - |  | (883,218)
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | (344,674) |  | - |  | - |  | (344,674)
Other Comprehensive Income |  |  |  |  |  |  |  | (1,179,950) |  | 171,306 |  | - |  | (1,008,644)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | 442,398 |  | - |  | 442,398
Inventories |  | 7 |  |  |  |  |  | - |  | 442,398 |  | - |  | 442,398

In the statement of cash flows, the effect of the derivative financial instruments designated as hedge accounting is presented in the line item in which the hedged object is recorded. For the instruments not designated, the effects are presented in the Derivative Financial Instruments line item.

Summarized financial position of derivative financial instruments:

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 68

| Parent company |  | Consolidated
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Asset |  |  |  |  |  |  |
Designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | 162,808 |  | 177,208 |  | 162,808 |  | 177,208
Commodities derivatives | 71,320 |  | 125,304 |  | 71,320 |  | 125,304
Interest rate derivatives | 7,659 |  | - |  | 7,659 |  | -
Not designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | 40,988 |  | 59,037 |  | 44,244 |  | 75,478
| 282,775 |  | 361,549 |  | 286,031 |  | 377,990
Current assets | 272,881 |  | 361,315 |  | 276,137 |  | 377,756
Non-current assets | 9,894 |  | 234 |  | 9,894 |  | 234
Liabilities |  |  |  |  |  |  |
Designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | (3,276) |  | (81,650) |  | (3,276) |  | (81,650)
Commodities derivatives | (131,373) |  | (269,361) |  | (131,373) |  | (269,361)
Interest rate derivatives | (2,619) |  | - |  | (2,619) |  | -
Not designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | - |  | (13,610) |  | (584) |  | (20,036)
Interest rate derivatives | - |  | (14,649) |  | - |  | (14,649)
| (137,268) |  | (379,270) |  | (137,852) |  | (385,696)
Current liabilities | (129,613) |  | (378,543) |  | (130,197) |  | (384,969)
Non-current liabilities | (7,655) |  | (727) |  | (7,655) |  | (727)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 69

| 24.6. | Sensitivity analysis

The Management understands 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 June 30, 2021, which has been described in the items above. The future results may diverge significantly of the estimated values if the reality presents different than the assumptions used. Positive values indicate gains and negative values indicate losses.

|  | Scenario
Exchange rate - Balance |  | Base |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.0022 |  | 2.5011 |  | 3.7517 |  | 4.5020 |  | 5.5024 |  | 6.2528 |  | 7.5033
Monetary Assets and Liabilities |  |  |  | 2,352,379 |  | 1,176,190 |  | 470,476 |  | (470,476) |  | (1,176,190) |  | (2,352,379)
Derivative Instruments - Not designated |  |  |  | (2,356,036) |  | (1,178,018) |  | (471,207) |  | 471,207 |  | 1,178,018 |  | 2,356,036
Net effect |  |  |  | (3,657) |  | (1,828) |  | (731) |  | 731 |  | 1,828 |  | 3,657
EUR |  | 5.9276 |  | 2.9638 |  | 4.4457 |  | 5.3348 |  | 6.5204 |  | 7.4095 |  | 8.8914
Monetary Assets and Liabilities |  |  |  | 674,893 |  | 337,447 |  | 134,979 |  | (134,979) |  | (337,447) |  | (674,893)
Derivative Instruments - Not designated |  |  |  | (616,621) |  | (308,310) |  | (123,324) |  | 123,324 |  | 308,310 |  | 616,621
Net effect |  |  |  | 58,272 |  | 29,137 |  | 11,655 |  | (11,655) |  | (29,137) |  | (58,272)
JPY |  | 0.0451 |  | 0.0225 |  | 0.0338 |  | 0.0405 |  | 0.0496 |  | 0.0563 |  | 0.0676
Monetary Assets and Liabilities |  |  |  | (79,105) |  | (39,553) |  | (15,821) |  | 15,821 |  | 39,553 |  | 79,105
Derivative Instruments - Not designated |  |  |  | 56,313 |  | 28,156 |  | 11,263 |  | (11,263) |  | (28,156) |  | (56,313)
Net effect |  |  |  | (22,792) |  | (11,397) |  | (4,558) |  | 4,558 |  | 11,397 |  | 22,792
RUB |  | 0.0684 |  | 0.0342 |  | 0.0513 |  | 0.0615 |  | 0.0752 |  | 0.0854 |  | 0.1025
Monetary Assets and Liabilities |  |  |  | (464) |  | (232) |  | (93) |  | 93 |  | 232 |  | 464
Net effect |  |  |  | (464) |  | (232) |  | (93) |  | 93 |  | 232 |  | 464
TRY |  | 0.5746 |  | 0.2873 |  | 0.4310 |  | 0.5171 |  | 0.6321 |  | 0.7183 |  | 0.8619
Monetary Assets and Liabilities |  |  |  | 4,275 |  | 2,137 |  | 855 |  | (855) |  | (2,137) |  | (4,275)
Net effect |  |  |  | 4,275 |  | 2,137 |  | 855 |  | (855) |  | (2,137) |  | (4,275)
AOA |  | 0.0077 |  | 0.0038 |  | 0.0058 |  | 0.0069 |  | 0.0084 |  | 0.0096 |  | 0.0115
Monetary Assets and Liabilities |  |  |  | (99,508) |  | (49,754) |  | (19,902) |  | 19,902 |  | 49,754 |  | 99,508
Net effect |  |  |  | (99,508) |  | (49,754) |  | (19,902) |  | 19,902 |  | 49,754 |  | 99,508

|  | Scenario
Exchange rate - Operating results |  | Base |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.0022 |  | 2.5011 |  | 3.7517 |  | 4.5020 |  | 5.5024 |  | 6.2528 |  | 7.5033
Revenue in USD |  |  |  | (1,390,432) |  | (695,216) |  | (278,086) |  | 278,086 |  | 695,216 |  | 1,390,432
NDF |  |  |  | 550,242 |  | 275,121 |  | 110,048 |  | (110,048) |  | (275,121) |  | (550,242)
Collar |  |  |  | 287,627 |  | 143,813 |  | 57,525 |  | (51,713) |  | (110,661) |  | (254,475)
Loans - Designated |  |  |  | 552,563 |  | 276,282 |  | 110,513 |  | (110,513) |  | (276,282) |  | (552,563)
Net effect |  |  |  | - |  | - |  | - |  | 5,812 |  | 33,152 |  | 33,152

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 70

|  | Scenario
Exchange rate - Operating results |  | Base |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.0022 |  | 2.5011 |  | 3.7517 |  | 4.5020 |  | 5.5024 |  | 6.2528 |  | 7.5033
Cost of Sales |  |  |  | (236,819) |  | (118,409) |  | (47,364) |  | 47,364 |  | 118,409 |  | 236,819
NDF |  |  |  | 236,819 |  | 118,409 |  | 47,364 |  | (47,364) |  | (118,409) |  | (236,819)
Net effect |  |  |  | - |  | - |  | - |  | - |  | - |  | -
|  | Scenario
Operating results - Commodities |  | Base (1) |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
Soy Grain - CBOT |  | 513 |  | 256 |  | 385 |  | 462 |  | 564 |  | 641 |  | 769
Cost of Sales |  |  |  | 3,847 |  | 1,924 |  | 769 |  | (769) |  | (1,924) |  | (3,847)
Collar |  |  |  | (6,428) |  | (2,564) |  | (872) |  | 1,545 |  | 3,863 |  | 7,727
NDF |  |  |  | 3,847 |  | 1,924 |  | 769 |  | (769) |  | (1,924) |  | (3,847)
Net effect |  |  |  | 1,266 |  | 1,284 |  | 666 |  | 7 |  | 15 |  | 33
Soybean Meal - CBOT |  | 400 |  | 200 |  | 300 |  | 360 |  | 440 |  | 500 |  | 600
Cost of Sales |  |  |  | 47,991 |  | 23,995 |  | 9,598 |  | (9,598) |  | (23,995) |  | (47,991)
Collar |  |  |  | (6,645) |  | (3,199) |  | (1,156) |  | 320 |  | 2,167 |  | 5,614
NDF |  |  |  | (41,393) |  | (20,697) |  | (8,279) |  | 8,279 |  | 20,697 |  | 41,393
Net effect |  |  |  | (47) |  | 99 |  | 163 |  | (999) |  | (1,131) |  | (984)
Soybean Oil - CBOT |  | 1,401 |  | 701 |  | 1,051 |  | 1,261 |  | 1,541 |  | 1,752 |  | 2,102
Cost of Sales |  |  |  | 8,398 |  | 4,199 |  | 1,680 |  | (1,680) |  | (4,199) |  | (8,398)
Collar |  |  |  | (6,982) |  | (4,199) |  | (1,680) |  | 1,680 |  | 4,199 |  | 8,398
Net effect |  |  |  | 1,416 |  | - |  | - |  | - |  | - |  | -
Corn - CBOT |  | 230 |  | 115 |  | 173 |  | 207 |  | 254 |  | 288 |  | 346
Cost of Sales |  |  |  | (37,801) |  | (18,900) |  | (7,560) |  | 7,560 |  | 18,900 |  | 37,801
NDF |  |  |  | 37,801 |  | 18,900 |  | 7,560 |  | (7,560) |  | (18,900) |  | (37,801)
Net effect |  |  |  | - |  | - |  | - |  | - |  | - |  | -
Corn - B3 |  | 1,543 |  | 771 |  | 1,157 |  | 1,388 |  | 1,697 |  | 1,928 |  | 2,314
Cost of Sales |  |  |  | (125,084) |  | (62,542) |  | (25,017) |  | 25,017 |  | 62,542 |  | 125,084
Collar |  |  |  | 70,399 |  | 35,553 |  | 13,897 |  | (8,135) |  | (25,568) |  | (61,261)
NDF |  |  |  | 17,786 |  | 8,893 |  | 3,557 |  | (3,557) |  | (8,893) |  | (17,786)
Put |  |  |  | 4,631 |  | 2,316 |  | 926 |  | (428) |  | (428) |  | (428)
Net effect |  |  |  | (32,268) |  | (15,780) |  | (6,637) |  | 12,897 |  | 27,653 |  | 45,609

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 71

| 24.7. | Financial instruments by category

| Parent company
| 06.30.21
| Amortized cost |  | Fair value through profit and loss |  | Total
Assets |  |  |  |  |
Cash and bank | 85,734 |  | - |  | 85,734
Cash equivalents | - |  | 2,565,839 |  | 2,565,839
Marketable securities | - |  | 329,947 |  | 329,947
Restricted cash | 24,246 |  | - |  | 24,246
Trade accounts receivable | 6,200,964 |  | 241,381 |  | 6,442,345
Other receivables | 71,219 |  | - |  | 71,219
Derivatives not designated | - |  | 40,988 |  | 40,988
Derivatives designated as hedge accounting (1) | - |  | 241,787 |  | 241,787
Liabilities |  |  |  |  |
Trade accounts payable | (8,839,649) |  | - |  | (8,839,649)
Supply chain finance | (1,450,608) |  | - |  | (1,450,608)
Loans and borrowings (2) | (17,801,989) |  | (1,634,128) |  | (19,436,117)
Derivatives designated as hedge accounting (1) | - |  | (137,268) |  | (137,268)
| (21,710,083) |  | 1,648,546 |  | (20,061,537)

| (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.

| (2) | The part of the loans and borrowings the 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.

| Parent company
| 12.31.20
| Amortized cost |  | Fair value through profit and loss |  | Total
Assets |  |  |  |  |
Cash and bank | 118,307 |  | - |  | 118,307
Cash equivalents | - |  | 3,757,832 |  | 3,757,832
Marketable securities | - |  | 327,559 |  | 327,559
Restricted cash | 24,358 |  | - |  | 24,358
Trade accounts receivable | 4,906,964 |  | 310,265 |  | 5,217,229
Other receivables | 86,404 |  | - |  | 86,404
Derivatives not designated | - |  | 59,037 |  | 59,037
Derivatives designated as hedge accounting | - |  | 302,512 |  | 302,512
Liabilities |  |  |  |  |
Trade accounts payable | (8,170,012) |  | - |  | (8,170,012)
Supply chain finance | (1,452,637) |  | - |  | (1,452,637)
Loans and borrowings | (19,310,254) |  | - |  | (19,310,254)
Derivatives not designated | - |  | (28,259) |  | (28,259)
Derivatives designated as hedge accounting | - |  | (351,011) |  | (351,011)
| (23,796,870) |  | 4,377,935 |  | (19,418,935)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 72

| Consolidated
| 06.30.21
| Amortized cost |  | Fair value through profit and loss |  | Total
Assets |  |  |  |  |
Cash and bank | 3,015,503 |  | - |  | 3,015,503
Cash equivalents | - |  | 3,926,339 |  | 3,926,339
Marketable securities | 318,123 |  | 331,321 |  | 649,444
Restricted cash | 24,246 |  | - |  | 24,246
Trade accounts receivable | 2,726,982 |  | 241,381 |  | 2,968,363
Other receivables | 71,219 |  | - |  | 71,219
Derivatives not designated | - |  | 44,244 |  | 44,244
Derivatives designated as hedge accounting (1) | - |  | 241,787 |  | 241,787
Liabilities |  |  |  |  |
Trade accounts payable | (9,764,589) |  | - |  | (9,764,589)
Supply chain finance | (1,450,608) |  | - |  | (1,450,608)
Loans and borrowings (2) | (20,921,055) |  | (1,634,128) |  | (22,555,183)
Derivatives not designated | - |  | (584) |  | (584)
Derivatives designated as hedge accounting (1) | - |  | (137,268) |  | (137,268)
Written option– business combination | - |  | (106,095) |  | (106,095)
| (25,980,179) |  | 2,906,997 |  | (23,073,182)

| (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.

| (2) | The part of the loans and borrowings the 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.

| Consolidated
| 12.31.20
| Amortized cost |  | Fair value through other comprehensive income |  | Fair value through profit and loss |  | Total
|  | Equity instruments |  |
Assets |  |  |  |  |  |  |
Cash and bank | 2,439,072 |  | - |  | - |  | 2,439,072
Cash equivalents | - |  | - |  | 5,137,553 |  | 5,137,553
Marketable securities | 287,504 |  | 42,029 |  | 329,202 |  | 658,735
Restricted cash | 24,358 |  | - |  | - |  | 24,358
Trade accounts receivable | 3,789,616 |  | - |  | 310,265 |  | 4,099,881
Other receivables | 86,404 |  | - |  | - |  | 86,404
Derivatives not designated | - |  | - |  | 75,478 |  | 75,478
Derivatives designated as hedge accounting | - |  | - |  | 302,512 |  | 302,512
Liabilities |  |  |  |  |  |  |
Trade accounts payable | (9,009,987) |  | - |  | - |  | (9,009,987)
Supply chain finance | (1,452,637) |  | - |  | - |  | (1,452,637)
Loans and borrowings | (22,404,426) |  | - |  | - |  | (22,404,426)
Derivatives not designated | - |  | - |  | (34,685) |  | (34,685)
Derivatives designated as hedge accounting | - |  | - |  | (351,011) |  | (351,011)
Written option– business combination | - |  | - |  | (185,401) |  | (185,401)
| (26,240,096) |  | 42,029 |  | 5,583,913 |  | (20,614,154)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 73

| 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 has a financial liability arising from a put option written in the context of a business combination.

The table below presents the overall classification of financial instruments measured at fair value by measurement hierarchy. For the six-month period ended on June 30, 2021, there were no changes among the 3 levels of hierarchy.

| Parent company
| 06.30.21 |  | 12.31.20
| Level 1 |  | Level 2 |  | Total |  | Level 1 |  | Level 2 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Savings account and overnight | 119,550 |  | - |  | 119,550 |  | 102,336 |  | - |  | 102,336
Bank deposit certificates | - |  | 2,442,530 |  | 2,442,530 |  | - |  | 3,650,812 |  | 3,650,812
Financial treasury bills | 315,036 |  | - |  | 315,036 |  | 312,515 |  | - |  | 312,515
Investment funds | 18,670 |  | - |  | 18,670 |  | 19,728 |  | - |  | 19,728
Trade accounts receivable | - |  | 241,381 |  | 241,381 |  | - |  | 310,265 |  | 310,265
Derivatives | - |  | 282,775 |  | 282,775 |  | - |  | 361,549 |  | 361,549
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Derivatives | - |  | (137,268) |  | (137,268) |  | - |  | (379,270) |  | (379,270)
Loans and borrowings | - |  | (1,634,128) |  | (1,634,128) |  | - |  | - |  | -
| 453,256 |  | 1,195,290 |  | 1,648,546 |  | 434,579 |  | 3,943,356 |  | 4,377,935

| Consolidated
| 06.30.21 |  | 12.31.20
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks | - |  | - |  | - |  | - |  | 42,029 |  | - |  | - |  | 42,029
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings account and overnight | 1,420,426 |  | - |  | - |  | 1,420,426 |  | 1,220,232 |  | - |  | - |  | 1,220,232
Term deposits | 49,953 |  | - |  | - |  | 49,953 |  | 250,189 |  | - |  | - |  | 250,189
Bank deposit certificates | - |  | 2,452,201 |  | - |  | 2,452,201 |  | - |  | 3,662,448 |  | - |  | 3,662,448
Financial treasury bills | 315,036 |  | - |  | - |  | 315,036 |  | 312,515 |  | - |  | - |  | 312,515
Investment funds | 20,044 |  | - |  | - |  | 20,044 |  | 21,371 |  | - |  | - |  | 21,371
Trade accounts receivable | - |  | 241,381 |  | - |  | 241,381 |  | - |  | 310,265 |  | - |  | 310,265
Derivatives | - |  | 286,031 |  | - |  | 286,031 |  | - |  | 377,990 |  | - |  | 377,990
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives | - |  | (137,852) |  | - |  | (137,852) |  | - |  | (385,696) |  | - |  | (385,696)
Loans and borrowings | - |  | (1,634,128) |  | - |  | (1,634,128) |  | - |  | - |  | - |  | -
Written option– business combination | - |  | - |  | (106,095) |  | (106,095) |  | - |  | - |  | (185,401) |  | (185,401)
| 1,805,459 |  | 1,207,633 |  | (106,095) |  | 2,906,997 |  | 1,846,336 |  | 3,965,007 |  | (185,401) |  | 5,625,942

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.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 74

|  |  |  | Parent company and Consolidated
|  |  |  |  |  | 06.30.21 |  | 12.31.20
|  | Currency |  | Maturity |  | Book value |  | Fair value |  | Book value |  | Fair value
BRF S.A. |  |  |  |  |  |  |  |  |  |  |  |
BRF SA BRFSBZ 5 7/8 |  | USD |  | 2022 |  | (354,656) |  | (371,839) |  | (367,714) |  | (389,611)
BRF SA BRFSBZ 4 3/4 |  | USD |  | 2024 |  | (1,480,939) |  | (1,580,701) |  | (1,538,086) |  | (1,659,891)
BRF SA BRFSBZ 3.95 |  | USD |  | 2023 |  | (1,164,622) |  | (1,217,553) |  | (1,207,468) |  | (1,275,598)
BRF SA BRFSBZ 2 3/4 |  | EUR |  | 2022 |  | (989,814) |  | (1,012,445) |  | (1,081,404) |  | (1,105,478)
BRF SA BRFSBZ 4 7/8 |  | USD |  | 2030 |  | (3,502,512) |  | (3,707,880) |  | (3,951,539) |  | (4,333,054)
BRF SA BRFSBZ 5 3/4 |  | USD |  | 2050 |  | (3,949,066) |  | (4,187,092) |  | (4,106,115) |  | (4,705,851)
Debenture - 1st Issue |  | BRL |  | 2026 |  | (792,807) |  | (810,362) |  | (771,138) |  | (778,016)
Debenture - 2nd Issue |  | BRL |  | 2030 |  | (2,364,235) |  | (2,411,963) |  | (2,250,867) |  | (2,225,796)
Debenture - 3rd Issue |  | BRL |  | 2031 |  | (980,044) |  | (919,039) |  | - |  | -
Parent company |  |  |  |  |  | (15,578,695) |  | (16,218,874) |  | (15,274,331) |  | (16,473,295)
BRF GmbH |  |  |  |  |  |  |  |  |  |  |  |
BRF SA BRFSBZ 4.35 |  | USD |  | 2026 |  | (2,486,110) |  | (2,661,659) |  | (2,577,667) |  | (2,779,574)
Consolidated |  |  |  |  |  | (18,064,805) |  | (18,880,533) |  | (17,851,998) |  | (19,252,869)

| 24.8.1. | Level 3 measurement

The Company holds a financial liability arising from a put option written in the context of a business combination. This option gives the non-controlling shareholder the right to sell its equity stake in the subsidiary for an amount equivalent, in Turkish Liras, to a multiple of the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of the economic group of this subsidiary in the last 12 months prior to the exercise. The exercise period is comprised of the six-month period beginning on May 25, 2021. This liability is measured at the present value of redemption amount using internal assumptions regarding the results of that economic group.

The effects of the subsequent measurement resulted in a gain in financial results of R$74,172 in the six-month ended on June 30, 2021 (gain of R$390,353 in the same period of the prior year) and a loss of R$28,121 for the three-month period ended on June 30, 2021 (gain of R$337,677 in the same period of the prior year), as per note 28.

| 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:

| » | Poultry: production and sale of whole poultry and in-natura cuts.

| » | Pork and others: production and sale of in-natura cuts.

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

| » | Other sales: 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) and health care (health and wellness), 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 for each reportable operating segment is set forth below:

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 75

|  | Consolidated
|  |  |  | 2021 |  |  |  | 2020
Net sales |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Brazil |  |  |  |  |  |  |  |
In-natura |  | 1,399,081 |  | 2,746,505 |  | 1,093,445 |  | 2,350,532
Poultry |  | 1,035,554 |  | 2,069,002 |  | 793,689 |  | 1,763,725
Pork and other |  | 363,527 |  | 677,503 |  | 299,756 |  | 586,807
Processed |  | 4,393,007 |  | 8,426,675 |  | 3,541,008 |  | 6,933,812
Other sales |  | 25,200 |  | 37,042 |  | 8,402 |  | 13,665
|  | 5,817,288 |  | 11,210,222 |  | 4,642,855 |  | 9,298,009
International |  |  |  |  |  |  |  |
In-natura |  | 4,577,130 |  | 8,608,000 |  | 3,563,006 |  | 7,016,267
Poultry |  | 3,828,284 |  | 7,244,702 |  | 3,007,661 |  | 5,978,347
Pork and other |  | 748,846 |  | 1,363,298 |  | 555,345 |  | 1,037,920
Processed |  | 722,780 |  | 1,403,685 |  | 563,054 |  | 1,074,175
Other sales |  | 128,080 |  | 237,372 |  | 81,226 |  | 132,547
|  | 5,427,990 |  | 10,249,057 |  | 4,207,286 |  | 8,222,989
Other segments |  | 391,623 |  | 769,599 |  | 253,785 |  | 531,993
|  | 11,636,901 |  | 22,228,878 |  | 9,103,926 |  | 18,052,991

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

|  | Consolidated
|  |  |  | 2021 |  |  |  | 2020
|  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Brazil |  | 125,425 |  | 499,903 |  | 352,266 |  | 716,145
International |  | 281,156 |  | 455,980 |  | 227,685 |  | 668,333
Other segments |  | 86,166 |  | 177,059 |  | 22,628 |  | 60,157
Sub total |  | 492,747 |  | 1,132,942 |  | 602,579 |  | 1,444,635
Corporate |  | 87,575 |  | 75,291 |  | (15,392) |  | (302,769)
|  | 580,322 |  | 1,208,233 |  | 587,187 |  | 1,141,866

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

|  | Consolidated
|  |  |  | 2021 |  |  |  | 2020
Corporate |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Investigations involving the Company (note 1.4) |  | (2,905) |  | (8,142) |  | (11,771) |  | (24,072)
Reversal/(provision) for tax and civil contingencies |  | 79,243 |  | 74,925 |  | (19,263) |  | (59,889)
Expenses COVID-19 (1) |  | (17,054) |  | (24,996) |  | (2,182) |  | (26,260)
Results with sale and disposal of fixed assets |  | 6,430 |  | 12,085 |  | 5,287 |  | (5,987)
Expenses with demobilization |  | (816) |  | (3,020) |  | - |  | -
Impairment and result in the sale of investments |  | 23,471 |  | 23,590 |  | 993 |  | (6,764)
Agreement - Class Action |  | - |  | - |  | - |  | (204,436)
Arbitration reversal |  | - |  | - |  | 14,520 |  | 14,520
Restructuring plan |  | - |  | - |  | 13 |  | 13
Other |  | (794) |  | 849 |  | (2,989) |  | 10,106
|  | 87,575 |  | 75,291 |  | (15,392) |  | (302,769)

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 76

No customer individually or in aggregate (economic group) accounted for more than 5% of net sales for the six-month period ended on June 30, 2021 and 2020.

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:

| Consolidated
| Goodwill |  | Trademarks |  | Total
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Brazil | 1,151,498 |  | 1,151,498 |  | 982,478 |  | 982,478 |  | 2,133,976 |  | 2,133,976
International | 1,726,882 |  | 1,784,079 |  | 314,057 |  | 345,260 |  | 2,040,939 |  | 2,129,339
| 2,878,380 |  | 2,935,577 |  | 1,296,535 |  | 1,327,738 |  | 4,174,915 |  | 4,263,315

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 |  | Consolidated
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Gross sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | 7,199,687 |  | 13,886,104 |  | 5,739,830 |  | 11,506,128 |  | 7,199,687 |  | 13,886,104 |  | 5,739,830 |  | 11,506,128
International | 4,056,673 |  | 7,605,682 |  | 2,198,586 |  | 4,751,730 |  | 5,803,099 |  | 10,986,923 |  | 4,537,513 |  | 8,804,578
Other segments | 400,017 |  | 790,106 |  | 274,412 |  | 566,044 |  | 430,969 |  | 847,609 |  | 283,285 |  | 590,579
| 11,656,377 |  | 22,281,892 |  | 8,212,828 |  | 16,823,902 |  | 13,433,755 |  | 25,720,636 |  | 10,560,628 |  | 20,901,285
Sales deductions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | (1,382,399) |  | (2,675,882) |  | (1,096,975) |  | (2,208,119) |  | (1,382,399) |  | (2,675,882) |  | (1,096,975) |  | (2,208,119)
International | (6,175) |  | (10,757) |  | (24,698) |  | (48,646) |  | (375,109) |  | (737,866) |  | (330,227) |  | (581,589)
Other segments | (36,486) |  | (72,547) |  | (27,746) |  | (54,683) |  | (39,346) |  | (78,010) |  | (29,500) |  | (58,586)
| (1,425,060) |  | (2,759,186) |  | (1,149,419) |  | (2,311,448) |  | (1,796,854) |  | (3,491,758) |  | (1,456,702) |  | (2,848,294)
Net sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | 5,817,288 |  | 11,210,222 |  | 4,642,855 |  | 9,298,009 |  | 5,817,288 |  | 11,210,222 |  | 4,642,855 |  | 9,298,009
International | 4,050,498 |  | 7,594,925 |  | 2,173,888 |  | 4,703,084 |  | 5,427,990 |  | 10,249,057 |  | 4,207,286 |  | 8,222,989
Other segments | 363,531 |  | 717,559 |  | 246,666 |  | 511,361 |  | 391,623 |  | 769,599 |  | 253,785 |  | 531,993
| 10,231,317 |  | 19,522,706 |  | 7,063,409 |  | 14,512,454 |  | 11,636,901 |  | 22,228,878 |  | 9,103,926 |  | 18,052,991

| 27. | OTHER OPERATING INCOME (EXPENSES), NET

| Parent company |  | Consolidated
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Recovery of expenses (1) | 9,259 |  | 69,213 |  | 156,174 |  | 234,651 |  | 9,280 |  | 69,236 |  | 156,370 |  | 235,057
Provision reversal | - |  | - |  | 70,625 |  | 70,625 |  | - |  | - |  | 70,625 |  | 70,625
Scrap sales | 2,875 |  | 5,853 |  | 2,742 |  | 5,434 |  | 2,941 |  | 5,956 |  | 2,787 |  | 5,562
Provision for civil and tax risks | 79,285 |  | 74,971 |  | (22,796) |  | (65,272) |  | 79,344 |  | 74,720 |  | (23,045) |  | (65,520)
Other employees benefits | (7,078) |  | (14,413) |  | (8,214) |  | (15,649) |  | (7,078) |  | (14,413) |  | (8,214) |  | (15,649)
Insurance claims costs | (8,350) |  | (11,526) |  | (1,791) |  | (5,476) |  | (7,872) |  | (11,282) |  | (828) |  | (2,517)
Gains (losses) on the disposal of non-financial assets | 3,533 |  | 7,304 |  | 7,390 |  | (2,380) |  | 30,158 |  | 36,015 |  | 223 |  | (7,153)
Employee participation and bonuses | (6,405) |  | (14,526) |  | (71,874) |  | (121,399) |  | (8,495) |  | (29,055) |  | (71,347) |  | (117,992)
Demobilization expenses | (862) |  | (2,993) |  | (2,108) |  | (5,863) |  | (816) |  | (3,020) |  | (1,998) |  | (6,255)
Expected credit losses in other receivables | (749) |  | (1,089) |  | (92) |  | (3,185) |  | (749) |  | (1,089) |  | 308 |  | (3,157)
Other (2) | (5,129) |  | (11,405) |  | 17,165 |  | (175,596) |  | (914) |  | (1,888) |  | 10,205 |  | (193,001)
| 66,379 |  | 101,389 |  | 147,221 |  | (84,110) |  | 95,799 |  | 125,180 |  | 138,553 |  | (100,000)

| (1) | Includes recovery of PIS and COFINS taxes on inputs in the amount of R$27,164 and effects of the final decision related to the exclusion of ICMS from the PIS and COFINS calculation basis of Batávia in the amount of R$29,887 (note 9.1) for the six-month period ended on June 30, 2021 (R$227,423 of recovery of PIS and COFINS taxes on inputs in the same period of previous year).

| (2) | Includes expenditures with investigations (note 1.4) and in 2020 expenses with class action agreement.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 77

| 28. | FINANCIAL INCOME (EXPENSES), NET

|  |  | Parent company |  |  | Consolidated
|  |  |  |  | 2021 |  |  |  | 2020 |  |  |  |  | 2021 |  |  |  | 2020
| Note |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Financial income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on cash and cash equivalents | 4 |  | 23,147 |  | 40,404 |  | 32,813 |  | 53,847 |  |  | 31,097 |  | 57,364 |  | 21,474 |  | 51,029
Income with marketable securities | 5 |  | 2,628 |  | 4,279 |  | 2,478 |  | 21,921 |  |  | 11,766 |  | 18,018 |  | 28,800 |  | 45,387
Fair value through other comprehensive income |  |  | - |  | - |  | - |  | - |  |  | - |  | - |  | 243 |  | 454
Fair value through profit and loss |  |  | 2,447 |  | 3,987 |  | 2,306 |  | 6,060 |  |  | 2,455 |  | 3,996 |  | 2,305 |  | 5,716
Amortized cost |  |  | 181 |  | 292 |  | 172 |  | 15,861 |  |  | 9,311 |  | 14,022 |  | 26,252 |  | 39,217
Interest on recoverable taxes (1) | 9 |  | 34,400 |  | 111,922 |  | 23,659 |  | 80,256 |  |  | 34,422 |  | 111,961 |  | 23,704 |  | 80,340
Interest on other assets |  |  | 6,395 |  | 18,836 |  | 7,382 |  | 17,085 |  |  | 6,539 |  | 19,134 |  | 7,855 |  | 17,955
|  |  | 66,570 |  | 175,441 |  | 66,332 |  | 173,109 |  |  | 83,824 |  | 206,477 |  | 81,833 |  | 194,711
Financial expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interests on loans and borrowings | 15 |  | (380,513) |  | (755,022) |  | (272,631) |  | (550,464) |  |  | (430,690) |  | (855,810) |  | (317,077) |  | (631,570)
Interest with related parties | 30 |  | (81,302) |  | (156,747) |  | (100,565) |  | (181,326) |  |  | - |  | - |  | - |  | -
Interest on contingencies | 21 |  | (79,267) |  | (120,888) |  | (28,818) |  | (85,577) |  |  | (79,267) |  | (120,888) |  | (28,818) |  | (85,577)
Interest on leases | 18 |  | (42,099) |  | (85,773) |  | (47,015) |  | (95,261) |  |  | (61,691) |  | (116,981) |  | (51,494) |  | (103,863)
Interest on actuarial liabilities |  |  | (9,984) |  | (19,968) |  | (9,303) |  | (18,587) |  |  | (11,209) |  | (22,629) |  | (10,224) |  | (20,363)
Interest on other liabilities |  |  | 4,442 |  | (286) |  | 3,956 |  | 5,360 |  |  | 4,394 |  | (351) |  | 3,977 |  | 5,384
Written option - Business combination | 24.8.1 |  | - |  | - |  | - |  | - |  |  | (28,121) |  | 74,172 |  | 337,677 |  | 390,353
Adjustment to present value | 6 and 16 |  | (143,397) |  | (286,494) |  | (90,680) |  | (181,468) |  |  | (142,721) |  | (286,100) |  | (90,557) |  | (181,498)
Other |  |  | (34,000) |  | (51,871) |  | (32,827) |  | (85,300) |  |  | (47,969) |  | (95,102) |  | (10,047) |  | (108,779)
|  |  | (766,120) |  | (1,477,049) |  | (577,883) |  | (1,192,623) |  |  | (797,274) |  | (1,423,689) |  | (166,563) |  | (735,913)
Monetary, exchange and derivative results, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exchange rate variation on monetary assets and liabilities |  |  | 2,612,268 |  | 834,380 |  | (1,265,586) |  | (6,120,056) |  |  | 858,600 |  | 266,215 |  | (334,800) |  | (1,533,734)
Derivative results |  |  | (889,438) |  | (416,241) |  | 227,599 |  | 1,268,540 |  |  | (904,528) |  | (411,021) |  | 229,227 |  | 1,278,164
|  |  | 1,722,830 |  | 418,139 |  | (1,037,987) |  | (4,851,516) |  |  | (45,928) |  | (144,806) |  | (105,573) |  | (255,570)
|  |  | 1,023,280 |  | (883,469) |  | (1,549,538) |  | (5,871,030) |  |  | (759,378) |  | (1,362,018) |  | (190,303) |  | (796,772)

| (1) | For the six-month period ended on June 30, 2021, the effect includes the final decision related to the exclusion of ICMS from the PIS and COFINS calculation basis from Batávia (note 9) in the amount of R$45,156 (null in the same period of the previous year).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 78

| 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 |  | Consolidated
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Costs of sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Raw materials and supplies (1) | 6,270,908 |  | 11,301,971 |  | 4,231,356 |  | 8,139,255 |  | 7,141,711 |  | 13,264,616 |  | 5,047,664 |  | 9,722,981
Salaries and employees benefits | 1,045,274 |  | 2,065,117 |  | 983,001 |  | 1,914,252 |  | 1,064,560 |  | 2,103,960 |  | 1,002,007 |  | 1,947,175
Depreciation | 476,697 |  | 921,537 |  | 419,500 |  | 835,104 |  | 522,284 |  | 1,007,993 |  | 460,821 |  | 913,052
Amortization | 13,759 |  | 38,871 |  | 12,704 |  | 26,389 |  | 30,458 |  | 71,520 |  | 29,238 |  | 57,583
Other | 659,221 |  | 1,343,360 |  | 536,325 |  | 1,096,795 |  | 651,906 |  | 1,359,847 |  | 585,304 |  | 1,180,331
| 8,465,859 |  | 15,670,856 |  | 6,182,886 |  | 12,011,795 |  | 9,410,919 |  | 17,807,936 |  | 7,125,034 |  | 13,821,122
Sales expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect and direct logistics expenses | 666,956 |  | 1,220,478 |  | 547,545 |  | 1,063,078 |  | 754,265 |  | 1,416,093 |  | 624,692 |  | 1,208,409
Marketing | 120,140 |  | 232,774 |  | 86,606 |  | 203,672 |  | 159,423 |  | 316,604 |  | 136,138 |  | 290,233
Salaries and employees benefits | 266,092 |  | 516,581 |  | 267,851 |  | 517,086 |  | 358,715 |  | 696,467 |  | 353,584 |  | 671,734
Depreciation | 50,080 |  | 93,516 |  | 37,740 |  | 68,621 |  | 117,002 |  | 192,023 |  | 57,533 |  | 111,113
Amortization | 16,074 |  | 41,428 |  | 15,319 |  | 29,038 |  | 21,813 |  | 54,150 |  | 22,753 |  | 42,712
Other | 125,656 |  | 244,197 |  | 102,720 |  | 208,853 |  | 132,894 |  | 301,801 |  | 166,189 |  | 321,022
| 1,244,998 |  | 2,348,974 |  | 1,057,781 |  | 2,090,348 |  | 1,544,112 |  | 2,977,138 |  | 1,360,889 |  | 2,645,223
Administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employees benefits | 62,221 |  | 108,474 |  | 50,540 |  | 90,720 |  | 100,562 |  | 184,309 |  | 85,617 |  | 155,839
Fees | 13,574 |  | 24,824 |  | 17,350 |  | 29,213 |  | 13,574 |  | 24,824 |  | 17,350 |  | 29,213
Depreciation | 8,384 |  | 17,153 |  | 8,172 |  | 14,483 |  | 11,147 |  | 26,706 |  | 12,130 |  | 21,627
Amortization | 10,802 |  | 21,902 |  | 6,646 |  | 14,245 |  | 11,334 |  | 23,066 |  | 7,505 |  | 15,713
Other | 32,192 |  | 53,500 |  | 39,901 |  | 61,229 |  | 55,658 |  | 93,354 |  | 67,863 |  | 110,633
| 127,173 |  | 225,853 |  | 122,609 |  | 209,890 |  | 192,275 |  | 352,259 |  | 190,465 |  | 333,025

| (1) | Includes recoveries of PIS and COFINS taxes on inputs and export credits in the amount of R$34,266 for the six-month period ended on June 30, 2021 (null in the same period of the previous year).

The Company incurred in expenses with internal research and development of new products of R$20,456 for the six-month period ended on June 30, 2021 in the parent company and in the consolidated (R$31,187 in the parent company and in the consolidated in the same period of the prior year) and R$9,604 for the three-month period ended on June 30, 2021 in the parent company and in the consolidated (R$14,872 in the parent company and in the consolidated in the same period of the prior year).

| 30. | RELATED PARTIES

In the normal course of business, rights and obligations arise between related parties, resulting from transactions of sale and purchase of products, as well as from financial operations.

The Company holds a Related Parties Transactions Policy, which was reviewed and approved by the Board of Directors and applies to all subsidiaries of the group.

The policy mentioned above provides the conditions that must be observed for the realization of a transaction between related parties, as well as establishes approval hierarchies according to the value and nature of the transactions involved. The policy also foresees situations of conflict of interests and how they must be conducted.

In May and June 2021, Marfrig Global Foods S.A. (“Marfrig”) acquired common shares issued by BRF S.A., achieving 31.66% of participation in the Company’s capital stock. With such participation, Marfrig is able to exercise significant influence over BRF S.A., becoming a related party. The transactions and balances with Marfrig and its subsidiaries during the period are presented below.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 79

The balances of the transactions with related parties are as follows:

|  |  |  |  |  |  |  |  |  |  | Parent company
| Accounts receivable |  | Dividends and interest on shareholders' equity receivable |  | Loans |  | Trade accounts payable |  | Other rights |  | Advances and other liabilities
| 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20 |  | 06.30.21 |  | 12.31.20
Banvit | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 521 |  | 190 |  | - |  | -
BRF Energia S.A. | - |  | - |  | - |  | - |  | - |  | - |  | (30,609) |  | (13,063) |  | - |  | - |  | - |  | -
BRF Foods GmbH | 591,693 |  | 799,571 |  | - |  | - |  | - |  | - |  | - |  | - |  | 104 |  | 54 |  | (55) |  | (56)
BRF Foods LLC | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 491 |  | 501 |  | - |  | (2)
BRF Global GmbH | 4,993,989 |  | 2,319,292 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (8,264,790) | (1) | (7,095,587)
BRF GmbH | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 101 |  | 995 |  | (1,716,341) | (2) | (1,845,759)
BRF Pet S.A. | 13,695 |  | 6,228 |  | - |  | - |  | - |  | - |  | (37) |  | (37) |  | 485 |  | 480 |  | - |  | -
Establecimiento Levino Zaccardi y Cia. S.A. | - |  | - |  | - |  | - |  | 309 |  | 315 |  | - |  | - |  | - |  | - |  | - |  | -
Federal Foods | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (464) |  | -
Sadia Alimentos S.A. | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,303) |  | (3,069)
Sadia Chile S.A. | 125,917 |  | 114,742 |  | - |  | - |  | - |  | - |  | - |  | - |  | 3 |  | 3 |  | - |  | -
Sadia International Ltd. | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (18,990)
Sadia Uruguay S.A. | 3,237 |  | 5,743 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (39,890) |  | (38,823)
VIP S.A. Empreendimentos e Partic. Imob. | - |  | - |  | 10 |  | 10 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Marfrig Global Foods S.A. | 6,563 |  | - |  | - |  | - |  | - |  | - |  | (33,218) |  | - |  | - |  | - |  | - |  | -
Marfrig Chile S.A. | 1,380 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total | 5,736,474 |  | 3,245,576 |  | 10 |  | 10 |  | 309 |  | 315 |  | (63,864) |  | (13,100) |  | 1,705 |  | 2,223 |  | (10,024,843) |  | (9,002,286)

| (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.

| (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.

| Consolidated
| Accounts receivable | Trade accounts payable
| 06.30.21 |  | 06.30.21
Marfrig Global Foods S.A. | 6,563 |  | (33,218)
Marfrig Chile S.A. | 2,271 |  | -
Total | 8,834 |  | (33,218)

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 80

|  |  |  |  | Parent company
| Sales |  | Financial results, net |  | Purchases
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
BRF Energia S.A. | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (87,272) |  | (169,145) |  | (60,244) |  | (131,460)
BRF Foods GmbH | 56,284 |  | 107,340 |  | 47,582 |  | 93,362 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
BRF Global GmbH | 3,705,021 |  | 7,123,995 |  | 2,693,708 |  | 5,307,306 |  | (80,665) |  | (155,603) |  | (82,775) |  | (147,907) |  | - |  | - |  | - |  | -
BRF Pet S.A. | 2,854 |  | 5,788 |  | 1,317 |  | 2,487 |  | - |  | - |  | - |  | - |  | - |  | - |  | (29) |  | (58)
Establecimiento Levino Zaccardi y Cia. S.A. | - |  | - |  | - |  | - |  | 3 |  | 6 |  | 4 |  | 7 |  | - |  | - |  | - |  | -
Perdigão International Ltd. | - |  | - |  | - |  | - |  | - |  | - |  | (17,084) |  | (31,879) |  | - |  | - |  | - |  | -
Sadia Alimentos S.A. | - |  | - |  | - |  | - |  | (42) |  | (84) |  | (166) |  | (361) |  | - |  | - |  | - |  | -
Sadia Chile S.A. | 45,124 |  | 83,906 |  | 46,936 |  | 79,518 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Sadia Uruguay S.A. | 15,639 |  | 31,360 |  | 11,270 |  | 20,713 |  | (598) |  | (1,066) |  | (544) |  | (1,186) |  | - |  | - |  | - |  | -
Marfrig Chile S.A. (1) | 1,376 |  | 1,376 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Marfrig Global Foods S.A. (1) | 7,943 |  | 7,943 |  | - |  | - |  | - |  | - |  | - |  | - |  | (49,875) |  | (49,875) |  | - |  | -
Total | 3,834,241 |  | 7,361,708 |  | 2,800,813 |  | 5,503,386 |  | (81,302) |  | (156,747) |  | (100,565) |  | (181,326) |  | (137,147) |  | (219,020) |  | (60,273) |  | (131,518)

| Consolidated
| Sales | Purchases
|  |  | 2021 |  |  |  | 2021 |
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun |
Marfrig Chile S.A. (1) | 2,156 |  | 2,156 |  | - |  | - |
Marfrig Global Foods S.A. (1) | 7,943 |  | 7,943 |  | (54,530) |  | (54,530) |
Total | 10,099 |  | 10,099 |  | (54,530) |  | (54,530) |

| (1) | The period ranges from May 21,2021 to June 30, 2021.

The subsidiaries of the Company enter into loan agreements pursuant its cash management strategy. As of June 31, 2021, the balance of these transactions was R$2,000,279 (R$2,116,463 as of December 31, 2020) with a weighted average rate of 4.09% p.a. (3.01% p.a. as of December 31, 2020).

The Company has 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 six-month period ended on June 30, 2021 the total amount of lease payments was R$10,207 (R$9,764 in the same period of the prior year) for the three-month period ended on June 30, 2021, the total amount of lease payments was R$5,046 (R$4,882 in the same period of the prior year).

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.

| 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:

| Consolidated
|  |  | 2021 |  |  |  | 2020
| Apr - Jun |  | Jan - Jun |  | Apr - Jun |  | Jan - Jun
Salary and profit sharing | 17,512 |  | 31,187 |  | 23,638 |  | 35,605
Short-term benefits (1) | 230 |  | 424 |  | 1,492 |  | 1,611
Private pension | 293 |  | 590 |  | 589 |  | 896
Termination benefits | 749 |  | 1,498 |  | 1,439 |  | 4,403
Share-based payment | 7,338 |  | 14,186 |  | 4,360 |  | 8,394
| 26,122 |  | 47,885 |  | 31,518 |  | 50,909

| (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$13,227 for the six-month period ended on June 30, 2021 (R$9,435 in the same period of the prior year) and R$4,998 for the three-month period ended on June 30, 2021 (R$4,835 in the same period of the prior year).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 81

| 31. | 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:

Parent company |  | Consolidated
|  | 06.30.21 |  | 06.30.21
Current |  | 4,850,421 |  | 5,121,264
Non-current |  | 1,931,718 |  | 2,167,664
July to december 2022 |  | 565,093 |  | 662,406
2023 |  | 563,086 |  | 667,129
2024 |  | 235,693 |  | 262,895
2025 |  | 164,320 |  | 171,708
2026 onwards |  | 403,526 |  | 403,526
|  | 6,782,139 |  | 7,288,928

| 32. | TRANSACTIONS THAT DO NOT INVOLVE CASH

The following transactions did not involve cash or cash equivalents during the six-month period ended on June 30, 2021:

| (i) | Capitalized loan interest: as referred in note 13.

| (ii) | Addition of lease by right-of-use assets and respective lease liability: in the six-month period ended on June 30, 2021 amounted to R$195,829 in the parent company and R$378,575 in the consolidated (R$171,669 in the parent company and R$227,600 in the same period of the prior year) and in the three-month period ended on June 30, 2021, amounted to R$140,918 in the parent company and R$246,208 in the consolidated (R$21,260 in the parent company and R$21,463 in the same period of the prior year).

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 82

| 33. | EVENTS AFTER THE REPORTING PERIOD

| 33.1. | Investments in Aleph Farms, Ltd

On July 2, 2021, the Company participated in the round of investments (Series B) promoted by Aleph Farms, Ltd (“Aleph”), an Israeli startup that develops proteins in the laboratory from animal cells. The Company contributed the amount equivalent to R$13,082 (USD2,500), which added to resources from other investors, will be destined to the large-scale global marketing of products made from cultivated meat, as well as expansion of the startup’s portfolio.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 83

| 34. | APPROVAL OF THE INTERIM FINANCIAL INFORMATION

The interim financial information was approved and the issuance authorized by the Board of Directors on August 12, 2021.

BOARD OF DIRECTORS |
Chairman (Independent) | Pedro Pullen Parente
Vice-Chairman (Independent) | Augusto Marques da Cruz Filho
Independent Member | Dan Ioschpe
Independent Member | Flavia Buarque de Almeida
Independent Member | Flavia Maria Bittencourt
Non-Independent Member | Ivandré Motiel da Silva
Independent Member | José Luiz Osório de Almeida Filho
Independent Member | Luiz Fernando Furlan
Independent Member | Marcelo Feriozzi Bacci
Independent Member | Roberto Rodrigues
FISCAL COUNCIL |
Chairman | Attílio Guaspari
Member | André Vicentini
Member | Maria Paula Soares Aranha
AUDIT AND INTEGRITY COMMITTEE |
Comittee Coordinator (Independent) | Augusto Marques da Cruz Filho
Non-Independent Member | Ivandré Motiel da Silva
Independent Member | Marcelo Feriozzi Bacci
External Member | Jerônimo Antunes
External Member | Valmir Pedro Rossi
BOARD OF EXECUTIVE OFFICERS |
Global Chief Executive Officer | Lorival Nogueira Luz Júnior
Chief Financial and Investor Relations Officer | Carlos Alberto Bezerra de Moura
Vice-President of People, Services and Technology | Alessandro Rosa Bonorino
Vice-President of Institutional Relations and Sustainability | Grazielle Tallia Parenti
Vice-President of Integrated Planning and Logistics | Leonardo Campo Dallorto
Vice-President of New Business | Marcel Sacco
Vice-President of Quality and Research & Development | Neil Hamilton dos Guimarães Peixoto Jr.
Vice-President of Brazil Market | Sidney Rogério Manzaro
Vice-President of Operations and Procurement | Vinícius Guimarães Barbosa
Marcos Roberto Badollato | Heitor Carpigiani de Paula
Accounting Director | Accountant – CRC 1SP336262/O-4

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 84

COMENTARY ABOUT THE BEHAVIOR OF THE COMPANY’S PROJECTIONS

On December 08, 2020, the management disclosed certain estimates and expectations in connection with the Company for the next ten years, including the following projections:

(a) Expectation to make investments of, approximately, R$ 55 billion within the next ten years, setting up a prudent net financial leverage limit (ratio between net debt and Adjusted EBITDA of the 12 prior months) up to three times;

(b) Period between 2021 and 2023: expectation to achieve a net revenue of approximately R$ 65 billion, with a growing EBITDA twice the size in comparison to the current one, considering the last 12 months ended September 30, 2020;

(c) Period between 2024 and 2026: growth expectation of the net revenue and of the EBITDA of approximately 2,5 times in relation to the current levels, considering the last 12 months ended September 30, 2020 and a revenue growth of more than 60% in the Brazilian market;

(d) Period between 2027 and 2030: expectation to reach a net revenue of more than R$ 100 billion and an EBTIDA growth of more than 3,5 times in relation to the current level, considering the last 12 months ended September 30, 2020, consistent EBITDA Margins above 15%, net margin of approximately 6% and return on invested capital (“ROIC”) of approximately 16%.

The projections disclosed above are mere forecast and reflect the current management’s expectation in relation to BRF’s future. Nevertheless, these projections depend on certain factors and market conditions that escape the Company’s control and, therefore, may differ in relation to numbers and results that will be effectively recorded by the Company.

BREAKDOWN OF THE CAPITAL BY OWNER (NOT REVIEWED)

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

|  | 06.30.21 |  | 12.31.20
Shareholders |  | Quantity |  | % |  | Quantity |  | %
Major shareholders |  |  |  |  |  |  |  |
Marfrig Global Food S.A. |  | 257,267,671 |  | 31.66 |  | Not available (2)
JPMorgan Chase & Co. |  | 58,109,075 |  | 7.15 |  | Not available (2)
Fundação Petrobras de Seguridade Social - Petros (1) |  | 56,947,828 |  | 7.01 |  | 92,716,266 |  | 11.41
Caixa de Previd. dos Func. do Banco do Brasil (1) |  | 50,331,852 |  | 6.19 |  | 74,856,852 |  | 9.21
Kapitalo Investimentos Ltda. |  | 40,784,398 |  | 5.02 |  | Not available (2)
Management |  |  |  |  |  |  |  |
Board of Directors |  | 6,385,302 |  | 0.79 |  | 6,865,302 |  | 0.84
Executives |  | 901,819 |  | 0.11 |  | 605,902 |  | 0.07
Treasury shares |  | 4,083,804 |  | 0.50 |  | 4,766,084 |  | 0.59
Other |  | 337,661,497 |  | 41.57 |  | 632,662,840 |  | 77.88
|  | 812,473,246 |  | 100.00 |  | 812,473,246 |  | 100.00

| (1) | The pension funds are controlled by employees that participate in the respective entities.

| (2) | Information not available, as participation is less than 5%.

The Company is bound to arbitration in the Market Arbitration Chamber, as established by the arbitration clause in the by-laws.

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 85

INDEPENDENT AUDITORS’ REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Board of Directors and Shareholders of

BRF S.A.

Itajaí - SC

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of BRF S.A. (“Company”) contained in the Quarterly Information Form - ITR for the quarter ended June 30, 2021, which comprises the statement of financial position as of June 30, 2021 and the respective statements of income (loss) and comprehensive income (loss) for the three and six-month period then ended, and changes in equity and cash flows for the six-month period then ended, including the explanatory notes.

The Company's management is responsible for the preparation of this individual and consolidated interim financial information in accordance with Technical Pronouncement CPC 21 (R1) – Demonstração Intermediária and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of this information in accordance with standards issued by the Comissão de Valores Mobiliários – CVM, applicable to the preparation of Quarterly Information Form - ITR. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with the Brazilian and International standards on review engagements of interim financial information (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for the financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the auditing standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the Quarterly Information Form – ITR referred to above has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, issued by IASB, applicable to the preparation of Quarterly Information Form - ITR, and presented in accordance with the standards issued by the Comissão de Valores Mobiliários – CVM.

Emphasis of matter

We draw attention to explanatory note 1.4 to the interim financial information, individual and consolidated, which describe the investigations concluded by United States Government authorities and the ongoing investigations conducted by Brazilian Government authorities involving the Company, as well as their current and potential developments. In the current stage of the ongoing investigations, it is not possible to determine the potential financial and non-financial impacts on the Company resulting from them and of their potential developments and, consequently, to record potential losses which could have a material adverse effect on the Company´s financial position, results of operations and cash flows in the future. Our conclusion is not modified in respect of this matter.

Other matters - Statements of Value Added

The interim financial information above mentioned includes the Statements of Value Added, individual and consolidated, for the six-month period ended June 30, 2021, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34. These statements were submitted to review procedures together with the review of the Quarterly Information, with the objective of concluding whether they are reconciled with the interim financial information and accounting records, as applicable, and whether their form and content are in accordance with the criteria defined in Technical Pronouncement CPC 09 - Statement of Added Value. Based on our review, nothing has come to our attention that causes us to believe that it has not been prepared, in all material respects, in accordance with the criteria defined in this Pronouncement and consistent with the individual and consolidated interim financial information taken as a whole.

São Paulo, August 12, 2021

KPMG Auditores Independentes

CRC 2SP014428/O-6

Original report in Portuguese signed by

Fabian Junqueira Sousa

Accountant CRC 1SP235639/O-0

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 86

OPINION OF THE AUDIT AND INTEGRITY COMMITTEE

The Audit and Integrity Committee of BRF S.A., in fulfilling its statutory and legal duties, examined the interim financial information (parent company and consolidated) for the six-month period ended on June 30, 2021, the Management Report and the review report issued without modification by KPMG Auditores Independentes.

There were no situations of significant divergence between the Company's Management, the independent auditors and the Audit Committee in relation to the Company's interim financial information.

Based on the documents reviewed and the explanations provided, the members of the Audit and Integrity Committee, undersigned, issued the opinion that the interim financial information are in a position to be approved.

São Paulo, August 12, 2021.

Augusto Marques da Cruz Filho

Coordinator (Independent)

Ivandré Motiel da Silva

Non-Independent member

Marcelo Feriozzi Bacci

Independent member

Jerônimo Antunes

External member

Valmir Pedro Rossi

External member

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 87

STATEMENT OF EXECUTIVE BOARD ON THE INTERIM FINANCIAL INFORMATION 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:

| (i) | reviewed, discussed and agreed with the Company's interim financial information for the six-month period ended on June 30, 2021, and

| (ii) | reviewed, discussed and agreed with the opinions expressed in the audit report issued by KPMG Auditores Independentes for the Company's interim financial information for the six-month period ended on June 30, 2021.

São Paulo, August 12, 2021.

Lorival Nogueira Luz Júnior

Global Chief Executive Officer

Carlos Alberto Bezerra de Moura

Chief Financial and Investor Relations Officer

Alessandro Rosa Bonorino

Vice-President of People, Services and Technology

Grazielle Tallia Parenti

Vice-President of Institutional Relations and Sustainability

Leonardo Campo Dallorto

Vice-President of Integrated Planning and Logistics

Marcel Sacco

Vice-President of New Business

Neil Hamilton dos Guimarães Peixoto Jr.

Vice-President of Quality and Research & Development

Sidney Rogério Manzaro

Vice-President of Brazil Market

Vinícius Guimarães Barbosa

Vice-President of Operations and Procurement

BRF S.A. | INTERIM FINANCIAL INFORMATION – June 30, 2021 | 88