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

INDEX

STATEMENTS OF FINANCIAL POSITION | 4
STATEMENTS OF INCOME (LOSS) | 5
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | 6
STATEMENTS OF CHANGES IN EQUITY | 7
STATEMENTS OF CASH FLOWS | 8
STATEMENTS OF VALUE ADDED | 9
MANAGEMENT REPORT | 10
1. COMPANY’S OPERATIONS | 30
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 | 36
6. TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | 36
7. INVENTORIES | 37
8. BIOLOGICAL ASSETS | 39
9. RECOVERABLE TAXES | 41
10. DEFERRED INCOME TAXES | 43
11. JUDICIAL DEPOSITS | 45
12. INVESTMENTS | 45
13. PROPERTY, PLANT AND EQUIPMENT | 47
14. INTANGIBLE ASSETS | 49
15. LOANS AND BORROWINGS | 51
16. TRADE ACCOUNTS PAYABLE | 53
17. SUPPLY CHAIN FINANCE | 54
18. LEASES | 55
19. SHARE-BASED PAYMENT | 57
20. EMPLOYEES BENEFITS PLANS | 58
21. PROVISION FOR TAX, CIVIL AND LABOR RISKS | 59
22. EQUITY | 60
23. EARNINGS (LOSS) PER SHARE | 61
24. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 62
25. SEGMENT INFORMATION | 75
26. NET SALES | 77
27. OTHER OPERATING INCOME (EXPENSES), NET | 78
28. FINANCIAL INCOME (EXPENSES), NET | 78
29. STATEMENT OF INCOME BY NATURE | 79

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 2

Table of Contents

30. RELATED PARTIES | 80
31. COMMITMENTS | 82
32. TRANSACTIONS THAT DO NOT INVOLVE CASH | 82
33. EVENTS AFTER THE REPORTING PERIOD | 82
34. APPROVAL OF THE INTERIM FINANCIAL INFORMATION | 84
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 – September 30, 2022 | 3

Table of Contents

(in thousands of Brazilian Reais)

STATEMENTS OF FINANCIAL POSITION

|  |  | Parent company |  | Consolidated |  |  |  |  | Parent company |  | Consolidated
ASSETS | Note |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21 |  | LIABILITIES | Note |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
CURRENT ASSETS |  |  |  |  |  |  |  |  |  |  | CURRENT LIABILITIES |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 4 |  | 2,933,449 |  | 4,633,816 |  | 8,335,724 |  | 7,528,820 |  | Loans and borrowings | 15 |  | 2,751,314 |  | 2,790,926 |  | 3,159,148 |  | 3,203,068
Marketable securities | 5 |  | 353,673 |  | 324,771 |  | 418,891 |  | 346,855 |  | Trade accounts payable | 16 |  | 11,486,268 |  | 10,440,754 |  | 12,988,510 |  | 11,701,996
Trade and other receivables | 6 |  | 6,054,436 |  | 7,270,531 |  | 4,083,926 |  | 4,107,156 |  | Supply chain finance | 17 |  | 1,339,820 |  | 2,237,975 |  | 1,339,820 |  | 2,237,975
Inventories | 7 |  | 7,004,477 |  | 7,403,503 |  | 9,717,825 |  | 9,654,870 |  | Lease liability | 18 |  | 455,073 |  | 364,470 |  | 629,332 |  | 471,956
Biological assets | 8 |  | 2,802,014 |  | 2,786,692 |  | 2,980,996 |  | 2,899,921 |  | Payroll, related charges and employee profit sharing |  |  | 974,799 |  | 810,960 |  | 1,035,240 |  | 900,394
Recoverable taxes | 9 |  | 671,421 |  | 881,927 |  | 879,358 |  | 976,133 |  | Taxes payable |  |  | 191,962 |  | 246,744 |  | 499,307 |  | 454,038
Recoverable income taxes | 9 |  | 70,919 |  | 29,784 |  | 157,655 |  | 71,762 |  | Derivative financial instruments | 24 |  | 78,955 |  | 325,430 |  | 79,513 |  | 327,443
Derivative financial instruments | 24 |  | 88,937 |  | 132,498 |  | 88,937 |  | 134,551 |  | Provision for tax, civil and labor risks | 21 |  | 920,663 |  | 956,193 |  | 924,178 |  | 959,132
Restricted cash |  |  | - |  | 24,963 |  | - |  | 24,963 |  | Employee benefits | 20 |  | 42,097 |  | 42,097 |  | 53,324 |  | 54,354
Assets held for sale |  |  | - |  | 5,000 |  | 27,363 |  | 16,628 |  | Advances from related parties | 30 |  | 8,196,615 |  | 12,393,604 |  | - |  | -
Other current assets |  |  | 424,215 |  | 324,680 |  | 680,172 |  | 481,464 |  | Other current liabilities |  |  | 226,339 |  | 357,887 |  | 693,501 |  | 914,933
Total current assets |  |  | 20,403,541 |  | 23,818,165 |  | 27,370,847 |  | 26,243,123 |  | Total current liabilities |  |  | 26,663,905 |  | 30,967,040 |  | 21,401,873 |  | 21,225,289
NON-CURRENT ASSETS |  |  |  |  |  |  |  |  |  |  | NON-CURRENT LIABILITIES |  |  |  |  |  |  |  |  |
LONG-TERM RECEIVALBLES |  |  |  |  |  |  |  |  |  |  | Loans and borrowings | 15 |  | 18,153,767 |  | 19,320,254 |  | 20,886,578 |  | 22,252,962
Marketable securities | 5 |  | 15,000 |  | 15,438 |  | 444,188 |  | 447,413 |  | Trade accounts payable | 16 |  | 10,640 |  | 8,718 |  | 10,640 |  | 12,628
Trade and other receivables | 6 |  | 21,233 |  | 34,540 |  | 21,460 |  | 34,978 |  | Lease liability | 18 |  | 2,054,567 |  | 1,803,853 |  | 2,353,255 |  | 2,007,290
Recoverable taxes | 9 |  | 5,117,791 |  | 4,765,453 |  | 5,122,218 |  | 4,780,096 |  | Taxes payable |  |  | 127,312 |  | 130,565 |  | 128,522 |  | 132,195
Recoverable income taxes | 9 |  | 213,600 |  | 194,979 |  | 224,826 |  | 206,355 |  | Provision for tax, civil and labor risks | 21 |  | 578,832 |  | 517,522 |  | 620,901 |  | 558,500
Deferred income taxes | 10 |  | 2,650,775 |  | 2,885,387 |  | 2,734,379 |  | 2,941,270 |  | Deferred income taxes | 10 |  | - |  | - |  | 91,685 |  | 23,710
Judicial deposits | 11 |  | 546,575 |  | 545,631 |  | 554,801 |  | 550,319 |  | Liabilities with related parties | 30 |  | 48,798 |  | 45,921 |  | - |  | -
Biological assets | 8 |  | 1,491,649 |  | 1,367,013 |  | 1,561,235 |  | 1,414,482 |  | Employee benefits | 20 |  | 386,163 |  | 361,356 |  | 521,104 |  | 498,231
Derivative financial instruments | 24 |  | 6,970 |  | 10,804 |  | 6,970 |  | 10,804 |  | Derivative financial instruments | 24 |  | 86,200 |  | 41,861 |  | 86,200 |  | 41,861
Restricted cash |  |  | 26,696 |  | 1 |  | 86,971 |  | 1 |  | Other non-current liabilities |  |  | 274,473 |  | 251,512 |  | 330,467 |  | 325,098
Other non-current assets |  |  | 139,810 |  | 70,228 |  | 143,888 |  | 76,757 |  |  |  |  |  |  |  |  |  |  |
Total long-term receivables |  |  | 10,230,099 |  | 9,889,474 |  | 10,900,936 |  | 10,462,475 |  | Total non-current liabilities |  |  | 21,720,752 |  | 22,481,562 |  | 25,029,352 |  | 25,852,475
|  |  |  |  |  |  |  |  |  |  | EQUITY | 22 |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Capital |  |  | 12,836,522 |  | 12,460,471 |  | 12,836,522 |  | 12,460,471
|  |  |  |  |  |  |  |  |  |  | Capital reserves |  |  | 2,338,476 |  | 141,834 |  | 2,338,476 |  | 141,834
Investments | 12 |  | 14,052,101 |  | 13,269,948 |  | 100,448 |  | 7,113 |  | Other equity transactions |  |  | (78,329) |  | (67,531) |  | (78,329) |  | (67,531)
Property, plant and equipment | 13 |  | 12,442,551 |  | 11,723,211 |  | 14,173,566 |  | 13,040,862 |  | Accumulated losses |  |  | (1,466,856) |  | (2,132,230) |  | (1,466,856) |  | (2,132,230)
Intangible assets | 14 |  | 3,256,805 |  | 3,210,336 |  | 6,492,242 |  | 6,149,814 |  | Treasury shares |  |  | (109,727) |  | (127,286) |  | (109,727) |  | (127,286)
|  |  |  |  |  |  |  |  |  |  | Other comprehensive loss |  |  | (1,519,646) |  | (1,812,726) |  | (1,519,646) |  | (1,812,726)
|  |  |  |  |  |  |  |  |  |  | Attributable to controlling shareholders |  |  | 12,000,440 |  | 8,462,532 |  | 12,000,440 |  | 8,462,532
Total non-current assets |  |  | 39,981,556 |  | 38,092,969 |  | 31,667,192 |  | 29,660,264 |  | Non-controlling interests |  |  | - |  | - |  | 606,374 |  | 363,091
|  |  |  |  |  |  |  |  |  |  | Total equity |  |  | 12,000,440 |  | 8,462,532 |  | 12,606,814 |  | 8,825,623
TOTAL ASSETS |  |  | 60,385,097 |  | 61,911,134 |  | 59,038,039 |  | 55,903,387 |  | TOTAL LIABILITIES AND EQUITY |  |  | 60,385,097 |  | 61,911,134 |  | 59,038,039 |  | 55,903,387

The accompanying notes are an integral part of the interim financial information.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 4

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(in thousands of Brazilian Reais)

STATEMENTS OF INCOME (LOSS)

|  |  | Parent company |  | Consolidated
|  |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021
|  |  |  |  |  |  |  |  | Restated (1) |  |  |  |  |  |  |  | Restated (1)
| Note |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
CONTINUING OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NET SALES | 26 |  | 12,150,323 |  | 33,484,167 |  | 11,082,728 |  | 30,605,434 |  | 14,056,041 |  | 39,036,395 |  | 12,389,985 |  | 34,618,863
Cost of sales | 29 |  | (10,085,627) |  | (29,098,084) |  | (8,840,314) |  | (24,504,276) |  | (11,458,083) |  | (33,342,576) |  | (9,901,801) |  | (27,922,105)
GROSS PROFIT |  |  | 2,064,696 |  | 4,386,083 |  | 2,242,414 |  | 6,101,158 |  | 2,597,958 |  | 5,693,819 |  | 2,488,184 |  | 6,696,758
OPERATING INCOME (EXPENSES) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling expenses | 29 |  | (1,703,302) |  | (4,419,090) |  | (1,348,577) |  | (3,706,486) |  | (1,860,132) |  | (5,013,091) |  | (1,536,133) |  | (4,314,504)
General and administrative expenses | 29 |  | (125,404) |  | (328,901) |  | (162,441) |  | (400,780) |  | (197,172) |  | (518,120) |  | (233,037) |  | (600,750)
Impairment loss on trade receivables | 6 |  | (2,286) |  | (7,274) |  | (2,318) |  | (8,034) |  | (4,311) |  | (7,801) |  | (3,135) |  | (11,627)
Other operating income (expenses), net | 27 |  | 22,147 |  | 9,368 |  | (31,592) |  | 84,324 |  | 26,481 |  | 21,267 |  | 14,601 |  | 168,836
Income from associates and joint ventures | 12 |  | 640,186 |  | (4,360) |  | 767,247 |  | 72,400 |  | 564 |  | 644 |  | - |  | -
INCOME (LOSS) BEFORE FINANCIAL RESULTS AND INCOME TAXES |  | 896,037 |  | (364,174) |  | 1,464,733 |  | 2,142,582 |  | 563,388 |  | 176,718 |  | 730,480 |  | 1,938,713
Financial income |  |  | 366,714 |  | 722,052 |  | 110,336 |  | 285,777 |  | 405,797 |  | 803,302 |  | 133,806 |  | 340,283
Financial expenses |  |  | (968,833) |  | (2,655,907) |  | (715,619) |  | (2,192,668) |  | (999,568) |  | (2,696,581) |  | (1,047,189) |  | (2,470,878)
Foreign exchange and monetary variations |  |  | (407,792) |  | 203,845 |  | (1,109,200) |  | (691,061) |  | (88,598) |  | (173,425) |  | (71,575) |  | (216,381)
FINANCIAL INCOME (EXPENSES), NET | 28 |  | (1,009,911) |  | (1,730,010) |  | (1,714,483) |  | (2,597,952) |  | (682,369) |  | (2,066,704) |  | (984,958) |  | (2,346,976)
LOSS BEFORE TAXES |  |  | (113,874) |  | (2,094,184) |  | (249,750) |  | (455,370) |  | (118,981) |  | (1,889,986) |  | (254,478) |  | (408,263)
Income taxes | 10 |  | (8,696) |  | (109,045) |  | (25,850) |  | 1,356 |  | (17,804) |  | (244,377) |  | (16,505) |  | (38,818)
LOSS FROM CONTINUING OPERATIONS |  |  | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014) |  | (136,785) |  | (2,134,363) |  | (270,983) |  | (447,081)
LOSS FROM DISCONTINUED OPERATIONS | 1.3 |  | - |  | (50,948) |  | (6,516) |  | (47,802) |  | - |  | (50,948) |  | (6,516) |  | (47,802)
LOSS FOR THE PERIOD |  |  | (122,570) |  | (2,254,177) |  | (282,116) |  | (501,816) |  | (136,785) |  | (2,185,311) |  | (277,499) |  | (494,883)
Net Income (loss) from Continuing Operation Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014) |  | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014)
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | (14,215) |  | 68,866 |  | 4,617 |  | 6,933
|  |  | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014) |  | (136,785) |  | (2,134,363) |  | (270,983) |  | (447,081)
Net Loss From Discontinued Operations Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | - |  | (50,948) |  | (6,516) |  | (47,802) |  | - |  | (50,948) |  | (6,516) |  | (47,802)
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
|  |  | - |  | (50,948) |  | (6,516) |  | (47,802) |  | - |  | (50,948) |  | (6,516) |  | (47,802)
LOSS PER SHARE FROM CONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding - basic |  |  |  |  |  |  |  |  |  |  | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Loss per share - basic | 23 |  |  |  |  |  |  |  |  |  | (0.11) |  | (2.11) |  | (0.34) |  | (0.56)
Weighted average shares outstanding - diluted |  |  |  |  |  |  |  |  |  |  | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Loss per share - diluted | 23 |  |  |  |  |  |  |  |  |  | (0.11) |  | (2.11) |  | (0.34) |  | (0.56)
LOSS PER SHARE FROM DISCONTINUED OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares outstanding - basic |  |  |  |  |  |  |  |  |  |  | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Losse per share - basic | 23 |  |  |  |  |  |  |  |  |  | - |  | (0.05) |  | (0.01) |  | (0.06)
Weighted average shares outstanding - diluted |  |  |  |  |  |  |  |  |  |  | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Losse per share - diluted | 23 |  |  |  |  |  |  |  |  |  | - |  | (0.05) |  | (0.01) |  | (0.06)

| (1) | The amounts of (i) employee participation and bonuses, and (ii) freight and port expenses in intra-group transactions were subject to an immaterial classification error correction (note 3).

The accompanying notes are an integral part of the interim financial information.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 5

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(in thousands of Brazilian Reais)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

|  |  | Parent company |  | Consolidated
|  |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021
| Note |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Loss for the period |  |  | (122,570) |  | (2,254,177) |  | (282,116) |  | (501,816) |  | (136,785) |  | (2,185,311) |  | (277,499) |  | (494,883)
Other comprehensive income (loss), net of taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on foreign currency translation of foreign operations |  |  | (47,388) |  | 8,003 |  | (62,480) |  | (159,117) |  | (68,302) |  | 43,545 |  | (64,635) |  | (204,216)
Gain (loss) on net investment hedge |  |  | (38,187) |  | 52,856 |  | (106,956) |  | (61,079) |  | (38,187) |  | 52,856 |  | (106,956) |  | (61,079)
Cash flow hedges – effective portion of changes in fair value | 24 |  | (14,499) |  | (71,240) |  | (254,373) |  | (188,114) |  | (14,076) |  | (70,941) |  | (254,306) |  | (188,047)
Cash flow hedges – reclassified to profit or loss | 24 |  | 36,079 |  | 285,250 |  | (42,306) |  | (51,452) |  | 36,079 |  | 285,250 |  | (42,306) |  | (51,452)
Items that are or may be reclassified subsequently to profit or loss |  |  | (63,995) |  | 274,869 |  | (466,115) |  | (459,762) |  | (84,486) |  | 310,710 |  | (468,203) |  | (504,794)
Equity investments measured at FVTOCI (1) - changes in fair value | 5 |  | - |  | - |  | - |  | 26,030 |  | - |  | - |  | - |  | 26,030
Actuarial gains on pension and post-employment plans | 20 |  | 3,615 |  | 18,211 |  | 3,753 |  | 11,852 |  | 3,422 |  | 23,654 |  | 3,694 |  | 11,729
Items that will not be reclassified to profit or loss |  |  | 3,615 |  | 18,211 |  | 3,753 |  | 37,882 |  | 3,422 |  | 23,654 |  | 3,694 |  | 37,759
Comprehensive income (loss) for the period |  |  | (182,950) |  | (1,961,097) |  | (744,478) |  | (923,696) |  | (217,849) |  | (1,850,947) |  | (742,008) |  | (961,918)
Attributable to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Controlling shareholders |  |  | (182,950) |  | (1,961,097) |  | (744,478) |  | (923,696) |  | (182,950) |  | (1,961,097) |  | (744,478) |  | (923,696)
Non-controlling interest |  |  | - |  | - |  | - |  | - |  | (34,899) |  | 110,150 |  | 2,470 |  | (38,222)
|  |  | (182,950) |  | (1,961,097) |  | (744,478) |  | (923,696) |  | (217,849) |  | (1,850,947) |  | (742,008) |  | (961,918)

| (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 interim financial information.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 6

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(in thousands of Brazilian Reais)

STATEMENTS OF CHANGES IN EQUITY

|  |  | Attributed to controlling shareholders
|  |  |  |  |  |  |  |  |  |  | Other comprehensive income (loss) |  |  |  |  |  |  |  |
|  |  | Capital |  | Capital reserves | Other equity transactions |  | Treasury shares |  | Accumulated foreign currency translation adjustments |  | Gains (losses) on marketable securities at FVTOCI (2) |  | Gains (losses) on cash flow hedge |  | Actuarial gains (losses) |  | Retained losses |  | Total equity |  | Non-controlling interest |  | Total shareholders' equity (consolidated)
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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains (losses) on foreign currency translation of foreign operations |  |  | - |  | - |  | - |  | - |  | (386,542) |  | - |  | - |  | - |  | - |  | (386,542) |  | (16,933) |  | (403,475)
Loss on net investment hedge |  |  | - |  | - |  | - |  | - |  | (96,555) |  | - |  | - |  | - |  | - |  | (96,555) |  | - |  | (96,555)
Marketable securities at FVTOCI (2) - changes in fair value |  |  | - |  | - |  | - |  | - |  | - |  | 26,030 |  | - |  | - |  | - |  | 26,030 |  | - |  | 26,030
Unrealized losses in cash flow hedge |  |  | - |  | - |  | - |  | - |  | - |  | - |  | (145,683) |  | - |  | - |  | (145,683) |  | (1,821) |  | (147,504)
Actuarial losses on pension and post-employment plans |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 131,168 |  | - |  | 131,168 |  | (497) |  | 130,671
Income for the year |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 419,455 |  | 419,455 |  | 17,929 |  | 437,384
SUB-TOTAL COMPREHENSIVE INCOME (LOSS) |  |  | - |  | - |  | - |  | - |  | (483,097) |  | 26,030 |  | (145,683) |  | 131,168 |  | 419,455 |  | (52,127) |  | (1,322) |  | (53,449)
Marketable securities at FVTOCI (2) - realized gain |  |  | - |  | - |  | - |  | - |  | - |  | (33,046) |  | - |  | - |  | 33,046 |  | - |  | - |  | -
Employee benefits remeasurement - defined benefit |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (9,297) |  | 9,297 |  | - |  | - |  | -
Dividends |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (80) |  | (80)
Share-based payments |  |  | - |  | - |  | (8,762) |  | (3,348) |  | - |  | - |  | - |  | - |  | - |  | (12,110) |  | - |  | (12,110)
Acquisition of non-controlling interests |  |  | - |  | - |  | (79,673) |  | - |  | - |  | - |  | - |  | - |  | - |  | (79,673) |  | (157,918) |  | (237,591)
Write-off of put option held by minority shareholders |  |  | - |  | - |  | 20,658 |  | - |  | - |  | - |  | - |  | - |  | - |  | 20,658 |  | 294,661 |  | 315,319
BALANCES AT DECEMBER 31, 2021 |  |  | 12,460,471 |  | 141,834 |  | (67,531) |  | (127,286) |  | (1,162,066) |  | - |  | (583,904) |  | (66,756) |  | (2,132,230) |  | 8,462,532 |  | 363,091 |  | 8,825,623
Restatement by hyperinflation |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 216,193 |  | 216,193 |  | 133,182 |  | 349,375
Comprehensive income (loss) (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on foreign currency translation of foreign operations |  |  | - |  | - |  | - |  | - |  | 8,003 |  | - |  | - |  | - |  | - |  | 8,003 |  | 35,542 |  | 43,545
Gain on net investment hedge |  |  | - |  | - |  | - |  | - |  | 52,856 |  | - |  | - |  | - |  | - |  | 52,856 |  | - |  | 52,856
Unrealized gains in cash flow hedge |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 214,010 |  | - |  | - |  | 214,010 |  | 299 |  | 214,309
Actuarial gains on pension and post-employment plans |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 18,211 |  | - |  | 18,211 |  | 5,443 |  | 23,654
Income (loss) for the period |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (2,254,177) |  | (2,254,177) |  | 68,866 |  | (2,185,311)
SUB-TOTAL COMPREHENSIVE INCOME (LOSS) |  |  | - |  | - |  | - |  | - |  | 60,859 |  | - |  | 214,010 |  | 18,211 |  | (2,254,177) |  | (1,961,097) |  | 110,150 |  | (1,850,947)
Capital increase through issuance of shares (note 22.1) |  |  | 500,000 |  | 4,900,000 |  | - |  | - |  | - |  |  |  | - |  | - |  |  |  | 5,400,000 |  | - |  | 5,400,000
Expenses with public exchange offer of shares (note 22.1) |  |  | (123,949) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (123,949) |  | - |  | (123,949)
Appropriation of income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (49) |  | (49)
Compensation of accumulated losses with capital reserve (note 22.3) |  |  | - |  | (2,703,358) |  | - |  | - |  | - |  | - |  | - |  | - |  | 2,703,358 |  | - |  | - |  | -
Share-based payments |  |  | - |  | - |  | (10,798) |  | 17,559 |  | - |  | - |  | - |  | - |  | - |  | 6,761 |  | - |  | 6,761
BALANCES AT SEPTEMBER 30, 2022 |  |  | 12,836,522 |  | 2,338,476 |  | (78,329) |  | (109,727) |  | (1,101,207) |  | - |  | (369,894) |  | (48,545) |  | (1,466,856) |  | 12,000,440 |  | 606,374 |  | 12,606,814

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

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

The accompanying notes are an integral part of the interim financial information.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 7

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(in thousands of Brazilian Reais)

STATEMENTS OF CASH FLOWS

|  | Parent company |  | Consolidated
|  | 2022 |  | 2021 |  | 2022 |  | 2021
|  | Jan - Sep |  | Jan - Sep |  | Jan - Sep |  | Jan - Sep
OPERATING ACTIVITIES |  |  |  |  |  |  |  |
Loss from continuing operations |  | (2,203,229) |  | (454,014) |  | (2,134,363) |  | (447,081)
Adjustments for: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 1,021,099 |  | 1,023,786 |  | 1,306,096 |  | 1,301,510
Depreciation and depletion of biological assets |  | 835,396 |  | 689,098 |  | 888,633 |  | 754,783
Result on disposal of property, plant and equipments and investment |  | 16,700 |  | (16,790) |  | 16,687 |  | (89,775)
Write-down of inventories to net realizable value |  | 137,973 |  | 54,950 |  | 24,722 |  | 68,965
Provision for tax, civil and labor risks |  | 264,752 |  | 74,065 |  | 266,900 |  | 73,645
Income from investments under the equity method |  | 4,360 |  | (72,400) |  | (644) |  | -
Financial results, net |  | 1,730,010 |  | 2,597,952 |  | 2,066,704 |  | 2,346,976
Tax recoveries and gains in tax lawsuits |  | (32,030) |  | (64,877) |  | (35,854) |  | (64,877)
Deferred income tax |  | 118,552 |  | (257,446) |  | 95,725 |  | (271,803)
Employee profit sharing |  | 115,778 |  | 49,624 |  | 109,648 |  | 65,255
Other provisions |  | 224 |  | 2,199 |  | 731 |  | 5,790
|  | 2,009,585 |  | 3,626,147 |  | 2,604,985 |  | 3,743,388
Trade accounts receivable |  | 1,255,961 |  | (3,472,227) |  | (33,094) |  | 849,748
Inventories |  | 261,053 |  | (2,051,756) |  | (354,996) |  | (2,385,327)
Biological assets - current |  | (15,322) |  | (525,641) |  | (116,643) |  | (551,526)
Trade accounts payable |  | 83,494 |  | 1,095,564 |  | 304,099 |  | 1,181,000
Supply chain finance |  | (894,671) |  | 443,092 |  | (894,671) |  | 443,092
Cash generated by operating activities |  | 2,700,100 |  | (884,821) |  | 1,509,680 |  | 3,280,375
Investments in securities at FVTPL (1) |  | - |  | (23,894) |  | (221,631) |  | (46,695)
Redemptions of securities at FVTPL (1) |  | 24,870 |  | 36,628 |  | 205,197 |  | 66,797
Interest received |  | 222,362 |  | 60,108 |  | 223,397 |  | 61,872
Payment of tax, civil and labor provisions |  | (219,545) |  | (269,701) |  | (216,833) |  | (269,704)
Derivative financial instruments |  | (1,368,566) |  | (55,913) |  | (1,321,802) |  | (35,097)
Other operating assets and liabilities (2) |  | (3,523,160) |  | 4,101,282 |  | 417,481 |  | (123,894)
Net cash provided by (used in) operating activities |  | (2,163,939) |  | 2,963,699 |  | 595,489 |  | 2,933,654
INVESTING ACTIVITIES |  |  |  |  |  |  |  |
Investments in securities at amortized cost |  | - |  | - |  | (222,152) |  | (4,060)
Redemptions of securities at amortized cost |  | - |  | - |  | 268,595 |  | 166,112
Investments in securities at FVTOCI (3) |  | - |  | - |  | - |  | (12,866)
Redemptions of securities at FVTOCI (3) |  | - |  | - |  | - |  | 86,059
Redemption of restricted cash |  | (2,074) |  | 400 |  | (2,074) |  | 400
Additions to property, plant and equipment |  | (1,012,309) |  | (958,688) |  | (1,140,103) |  | (1,050,838)
Additions to biological assets - non-current |  | (954,581) |  | (843,281) |  | (1,022,979) |  | (922,801)
Proceeds from disposals of property, plant, equipments and investment |  | 16,347 |  | 49,340 |  | 16,347 |  | 49,340
Additions to intangible assets |  | (171,302) |  | (137,760) |  | (183,270) |  | (133,436)
Business combination, net of cash |  | - |  | (581) |  | (158,348) |  | (983,709)
Sale of participation in subsidiaries with loss of control |  | - |  | - |  | - |  | 132,951
Capital increase in affiliates |  | (92,690) |  | 1,973 |  | (92,690) |  | 1,974
Capital increase in subsidiaries |  | (452,508) |  | (87,398) |  | - |  | -
Net cash used in investing activities |  | (2,669,117) |  | (1,975,995) |  | (2,536,674) |  | (2,670,874)
Net cash used in investing activities from discontinued operations |  | - |  | - |  | - |  | (17,550)
Net cash used in investing activities |  | (2,669,117) |  | (1,975,995) |  | (2,536,674) |  | (2,688,424)
FINANCING ACTIVITIES |  |  |  |  |  |  |  |
Proceeds from debt issuance |  | 2,357,061 |  | 1,578,249 |  | 2,724,353 |  | 1,831,117
Repayment of debt |  | (2,837,519) |  | (894,772) |  | (3,142,578) |  | (980,677)
Payment of interest |  | (1,108,944) |  | (911,775) |  | (1,285,982) |  | (1,021,601)
Payment of interest derivatives - fair value hedge |  | (143,979) |  | (1,086) |  | (143,979) |  | (1,086)
Capital increase through issuance of shares (note 22.1) |  | 5,276,051 |  | - |  | 5,276,051 |  | -
Acquisition of non-controlling interests |  | - |  | - |  | - |  | (238,421)
Payment of lease liabilities |  | (345,452) |  | (415,266) |  | (479,685) |  | (548,911)
Net cash provided by (used in) financing activities |  | 3,197,218 |  | (644,650) |  | 2,948,180 |  | (959,579)
EFFECT OF EXCHANGE RATE VARIATION ON CASH AND CASH EQUIVALENTS |  | (64,529) |  | 12,242 |  | (200,091) |  | 27,568
Net increase (decrease) in cash and cash equivalents |  | (1,700,367) |  | 355,296 |  | 806,904 |  | (686,781)
Balance at the beginning of the period |  | 4,633,816 |  | 3,876,139 |  | 7,528,820 |  | 7,576,625
Balance at the end of the period |  | 2,933,449 |  | 4,231,435 |  | 8,335,724 |  | 6,889,844

| (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$(4,206,635) in the nine-month period ended on September 30, 2022 (R$(4,998,148) in the same period of the previous year).

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

The accompanying notes are an integral part of the interim financial information.

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(in thousands of Brazilian Reais)

STATEMENTS OF VALUE ADDED

|  | Parent company |  | Consolidated
|  | 2022 |  | 2021 |  | 2022 |  | 2021
|  | Jan - Sep |  | Jan - Sep |  | Jan - Sep |  | Restated(1) Jan - Sep
1 - REVENUES |  | 37,901,243 |  | 34,975,944 |  | 43,797,422 |  | 39,166,633
Sales of goods and products |  | 36,894,918 |  | 33,945,439 |  | 42,696,053 |  | 37,991,120
Other income |  | 11,766 |  | 87,409 |  | 23,665 |  | 171,921
Revenue related to construction of own assets |  | 1,001,833 |  | 951,130 |  | 1,085,505 |  | 1,015,219
Expected credit losses |  | (7,274) |  | (8,034) |  | (7,801) |  | (11,627)
2 - SUPPLIES ACQUIRED FROM THIRD PARTIES |  | (28,399,286) |  | (23,495,331) |  | (32,398,347) |  | (26,993,361)
Costs of goods sold |  | (24,057,507) |  | (19,821,566) |  | (27,816,017) |  | (22,884,730)
Materials, energy, third parties services and other |  | (4,307,990) |  | (3,682,625) |  | (4,555,332) |  | (4,118,294)
Reversal for inventories losses |  | (33,789) |  | 8,860 |  | (26,998) |  | 9,663
3 - GROSS ADDED VALUE (1-2) |  | 9,501,957 |  | 11,480,613 |  | 11,399,075 |  | 12,173,272
4 - DEPRECIATION AND AMORTIZATION |  | (1,856,494) |  | (1,712,884) |  | (2,194,729) |  | (2,056,293)
5 - NET ADDED VALUE (3-4) |  | 7,645,463 |  | 9,767,729 |  | 9,204,346 |  | 10,116,979
6 - RECEIVED FROM THIRD PARTIES |  | 716,468 |  | 355,092 |  | 802,722 |  | 337,198
Income from associates and joint ventures |  | (4,360) |  | 72,400 |  | 644 |  | -
Financial income |  | 722,052 |  | 285,777 |  | 803,302 |  | 340,283
Others |  | (1,224) |  | (3,085) |  | (1,224) |  | (3,085)
7 - ADDED VALUE TO BE DISTRIBUTED (5+6) |  | 8,361,931 |  | 10,122,821 |  | 10,007,068 |  | 10,454,177
8 - DISTRIBUTION OF ADDED VALUE |  | 8,361,931 |  | 10,122,821 |  | 10,007,068 |  | 10,454,177
Payroll |  | 4,024,708 |  | 3,878,029 |  | 4,659,858 |  | 4,321,717
Salaries |  | 2,824,102 |  | 2,762,931 |  | 3,333,321 |  | 3,110,366
Benefits |  | 993,425 |  | 917,495 |  | 1,098,134 |  | 999,659
Government severance indemnity fund for employees |  | 207,181 |  | 197,603 |  | 228,403 |  | 211,692
Taxes, Fees and Contributions |  | 3,865,903 |  | 3,684,511 |  | 4,305,993 |  | 3,782,102
Federal |  | 1,639,905 |  | 1,472,503 |  | 1,889,736 |  | 1,543,434
State |  | 2,188,076 |  | 2,177,722 |  | 2,372,570 |  | 2,197,618
Municipal |  | 37,922 |  | 34,286 |  | 43,687 |  | 41,050
Capital Remuneration from Third Parties |  | 2,674,549 |  | 3,014,295 |  | 3,175,580 |  | 2,797,439
Interests, including exchange variation |  | 2,518,132 |  | 2,920,349 |  | 2,942,418 |  | 2,723,879
Rents |  | 156,417 |  | 93,946 |  | 233,162 |  | 73,560
Interest on Own-Capital |  | (2,203,229) |  | (454,014) |  | (2,134,363) |  | (447,081)
Loss for the period from continuing operations |  | (2,203,229) |  | (454,014) |  | (2,203,229) |  | (454,014)
Non-controlling interest |  | - |  | - |  | 68,866 |  | 6,933

| (1) | The comparative period was subject to an immaterial classification error correction in freight and port expenses intra-group transactions (note 3).

The accompanying notes are an integral part of the interim financial information.

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| 1. | COMPANY’S OPERATIONS

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

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

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

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1.1. Equity interest

|  |  |  |  |  |  | % equity interest
Entity |  |  | Main activity |  | Country (1) |  | 09.30.22 |  | 12.31.21
BRF GmbH |  |  | Holding |  | Austria |  | 100.00 |  | 100.00
BRF Foods GmbH | (f) |  | Industrialization, import and commercialization of products |  | Austria |  | 100.00 |  | 100.00
Al Khan Foodstuff LLC ("AKF") | (b) |  | Import, commercialization and distribution of products |  | Oman |  | 70.00 |  | 70.00
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. |  |  | Generation and commercialization of electric energy |  | Turkey |  | 100.00 |  | 100.00
Nutrinvestments BV |  |  | Holding |  | The Netherlands |  | 100.00 |  | 100.00
Banvit ME FZE | (a) |  | Marketing and logistics services |  | UAE |  | 100.00 |  | 100.00
BRF Foods LLC | (a) |  | Import, industrialization and commercialization of products |  | Russia |  | 99.99 |  | 99.99
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 | (a) |  | Import, industrialization and commercialization of products |  | Russia |  | 0.01 |  | 0.01
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. | (a) |  | Holding |  | Argentina |  | 4.36 |  | 4.36
Eclipse Latam Holdings |  |  | Holding |  | Spain |  | 100.00 |  | 100.00
Buenos Aires Fortune S.A. | (a) |  | Holding |  | Argentina |  | 95.64 |  | 95.64
Perdigão Europe Lda. |  |  | Import, export of products and administrative services |  | Portugal |  | 100.00 |  | 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
One Foods Holdings Ltd. |  |  | Holding |  | UAE |  | 100.00 |  | 100.00
Al-Wafi Food Products Factory LLC | (b) |  | 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 |  |  | Import and commercialization of products |  | Saudi Arabia |  | 100.00 |  | 100.00
BRF Kuwait Food Management Company WLL | (b) |  | Import, commercialization and distribution of products |  | Kuwait |  | 49.00 |  | 49.00
One Foods Malaysia SDN. BHD. | (a) |  | Marketing and logistics services |  | Malaysia |  | 100.00 |  | 100.00
Federal Foods LLC | (b) |  | Import, commercialization and distribution of products |  | UAE |  | 49.00 |  | 49.00
Federal Foods Qatar | (b) |  | 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
Hercosul Alimentos Ltda. | (e) |  | Manufacturing and sale of animal feed |  | Brazil |  | 100.00 |  | 100.00
Hercosul Distribuição Ltda. | (e) |  | Import, export, wholesale and retail sale of food products for animals |  | Brazil |  | 100.00 |  | 100.00
Hercosul International S.R.L. | (e) |  | Manufacturing, export, import and sale of feed and nutrients for animals |  | Paraguay |  | 99.00 |  | 99.00
Hercosul Soluções em Transportes Ltda. | (e) |  | Road freight |  | Brazil |  | 100.00 |  | 100.00
Mogiana Alimentos S.A. |  |  | Manufacturing, distribution and sale of Pet Food products |  | Brazil |  | 100.00 |  | 100.00
Affinity Petcare Brasil Participações Ltda. | (e) |  | Holding |  | Brazil |  | - |  | 100.00
Gewinner Participações Ltda. | (e) |  | Industrialization, distribution and sale of feed and nutrients for animals |  | Brazil |  | - |  | 100.00
Paraguassu Participações S.A. | (e) |  | Holding |  | Brazil |  | - |  | 100.00
Hercosul International S.R.L. |  |  | Manufacturing, export, import and sale of feed and nutrients for animals |  | Paraguay |  | 1.00 |  | 1.00
Potengi Holdings S.A. | (c) |  | Holding |  | Brazil |  | 50.00 |  | -
PR-SAD Administração de bem próprio S.A. |  |  | Management of assets |  | Brazil |  | 33.33 |  | 33.33
ProudFood Lda. |  |  | Import and commercialization of products |  | Angola |  | 10.00 |  | 10.00
PSA Laboratório Veterinário Ltda. |  |  | Veterinary activities |  | Brazil |  | 99.99 |  | 99.99
BRF Investimentos Ltda. | (d) |  | 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 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
BRF Investimentos Ltda. | (d) |  | 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) | For these entities, the Company has agreements that ensure full economic rights, except for AKF, in which the economic rights are of 99%.

| (c) | Affiliate with subsidiary of AES Brasil Energia S.A. (note 12).

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

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

| (f) | As from September 28, 2022, BRF GMBH holds the entire capital stock of BRF Foods GMBH, with retroactive tax and accounting effects to January 1st, 2022.

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

1.2. Business combinations

| 1.2.1. | Mogiana Group

On February 18, 2022, according to conditions established in the agreement, the Company, through its wholly-owned subsidiary BRF Pet, concluded the price adjustment of the consideration for the acquisition of Paraguassu Participações S.A. ("Paraguassu") and Affinity Petcare Brasil Participações Ltda. ("Affinity"), both owner of 100% of the capital stock of Mogiana Alimentos S.A. (together form the “Mogiana Group”). After the price adjustment, the fair value of the consideration transferred was R$477,408, of which R$373,813 were paid in cash, R$83,588 will be paid in the next 5 years and R$41,635 refers to contingent consideration.

Based on the price adjustment, there was a change in the determination of the value of the goodwill recognized. A summary of the final amounts in the business combination with the Mogiana Group are presented below:

Mogiana Group Combined |  | Fair value at the acquisition date
Assets |  |
Cash and cash equivalents |  | 938
Marketable securities |  | 29,824
Trade and other receivables |  | 59,758
Inventories |  | 54,517
Recoverable taxes |  | 27,748
Property, plant and equipment |  | 139,042
Intangible assets |  | 206,553
Other current and non-current assets |  | 5,486
|  | 523,866
Liabilities |  |
Trade accounts payable |  | 55,919
Loans and borrowings |  | 22,688
Lease liability |  | 10,168
Taxes payable |  | 11,487
Payroll, related charges and employee profit sharing |  | 6,296
Provision for tax, civil and labor risks (1) |  | 34,976
Employee benefits |  | 2,081
Deferred income taxes |  | 815
Other current and non-current liabilities |  | 16,932
|  | 161,362
Net assets acquired |  | 362,504
Fair value of consideration transferred |  | 477,408
Goodwill |  | 114,904

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

The goodwill of R$114,904 arising from the business combination consists mainly of the synergies expected with the combination of the operations BRF Pet, Mogiana Group and Hercosul Group strengthening the Company’s presence in the pet food sector.

1.3. Discontinued Operations

In 2022, BRF S.A. and certain of its subsidiaries entered into an agreement with Tyson International Holding Co. and Tyson Foods, Inc., in connection with the sale of BRF’s operations in Europe and Thailand, closed on June 3, 2019. This agreement provides for the termination of certain disputes related to losses incurred by the disposed entities and terminates Tyson's license to use certain BRF trademarks. Additionally, certain tax claims related to the period prior to

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the sale of the operations were finalized. The settlement of such disputes resulted in the payment of the amount equivalent to R$50,948 (USD10,164) by BRF. These transactions resulted in an expense which is presented under Net Loss from Discontinued Operations, consistently with the practice adopted in the sale of the operations in 2019.

1.4. | Investigations involving BRF

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

The main impacts observed as result of the referred investigations were recorded in Other Operating Expenses in the amount of R$355 for the nine-month period ended on September 30, 2022 (R$8,554 in the same period of the previous year) and for three-month period ended on September 30, 2022 was null (R$412 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.

1.5. Hyperinflationary economies – Turkey

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

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

The cumulative effects as of December 31, 2021 were recognized under Accumulated Losses, whereas the effects for the nine-month period ended September 30, 2022 were recognized as Exchange and monetary variations, in the income (loss) for the period.

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

The price index used for the nine-month period ended September 30, 2022 was 52%. In the consolidated financial information for the nine-month period ended September 30, 2022, the inflation adjustment impacted the Loss before financial results and income taxes in R$(152,720), the Financial Result in R$335,906 and the Loss from continuing operations in R$164,190.

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 2022 occurred between April 2nd, 2022 and May 1st, 2022.

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

The parent company’s and consolidated interim financial information were prepared in accordance with the CPC 21 (R1) – Interim Financial Statements and the IAS 34 – Interim Financial Reporting issued by the International Accounting

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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 are expressed in thousands of Brazilian Reais (“R$”), unless otherwise stated. For disclosures of amounts in other currencies, the values were also expressed in thousands, unless otherwise stated.

The preparation of the parent company’s and consolidated 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 were 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 were 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, 2021 (note 3), except for the income taxes, which were measured according to CPC 21 / IAS 34 by applying the estimated annual effective tax rate to the Income (Loss) Before Taxes for the interim period.

As presented in the financial statements for the year ended on December 31, 2021 (note 3), in order to improve the level of detail in the presentation of information in the financial statements, the Company began to classify the expenditures with employee participation and bonuses by function in the statement of income (loss).

Additionally, the Company performed the reclassification of freight and port expenses in intra-group transactions, beginning to classify them as Cost of Sales and no longer as Selling Expenses, as these are costs incurred to bring inventories to their current condition and location.

To ensure comparability between the periods presented, the Company performed the following reclassifications for the nine-month period ended September 30, 2021:

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|  |  |  |  |  | Parent company |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 2021 |  |  |  |  |  |  |  | 2021
|  |  |  |  |  | Jan - Sep |  |  |  |  |  |  |  |  |  | Jan - Sep
|  |  |  | Reclassification |  |  |  |  |  | Reclassification |  |  |  |
|  | Previously presented |  | Employee participation and bonuses |  | Restated |  | Previously presented |  | Employee participation and bonuses |  | Freight and port expenses |  | Restated |  | Correspon-ding Notes
Cost of sales |  | (24,499,439) |  | (4,837) |  | (24,504,276) |  | (27,573,239) |  | (12,468) |  | (336,398) |  | (27,922,105) |  | 29
Operating Income (Expenses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling expenses |  | (3,685,525) |  | (20,961) |  | (3,706,486) |  | (4,624,899) |  | (26,003) |  | 336,398 |  | (4,314,504) |  | 29
General and administrative expenses |  | (376,954) |  | (23,826) |  | (400,780) |  | (573,966) |  | (26,784) |  | - |  | (600,750) |  | 29
Other operating income (expenses), net |  | 34,700 |  | 49,624 |  | 84,324 |  | 103,581 |  | 65,255 |  | - |  | 168,836 |  | 27

| 4. | CASH AND CASH EQUIVALENTS

| Average rate (1) |  | Parent company |  | Consolidated
|  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Cash and bank accounts |  |  |  |  |  |  |  |  |
U.S. Dollar | - |  | 541 |  | 558 |  | 2,648,450 |  | 946,790
Saudi Riyal | - |  | - |  | - |  | 319,172 |  | 312,728
Brazilian Reais | - |  | 119,092 |  | 160,309 |  | 137,506 |  | 185,941
Euro | - |  | 5,190 |  | 1,438 |  | 137,351 |  | 103,630
Turkish Lira | - |  | - |  | - |  | 58,187 |  | 42,899
Other currencies | - |  | 503 |  | 140 |  | 526,794 |  | 601,520
|  |  | 125,326 |  | 162,445 |  | 3,827,460 |  | 2,193,508
Cash equivalents |  |  |  |  |  |  |  |  |
In Brazilian Reais |  |  |  |  |  |  |  |  |
Investment funds | 7.60% |  | 3,284 |  | 3,641 |  | 3,284 |  | 3,641
Bank deposit certificates | 12.59% |  | 2,782,044 |  | 4,410,146 |  | 2,821,494 |  | 4,451,214
|  |  | 2,785,328 |  | 4,413,787 |  | 2,824,778 |  | 4,454,855
In U.S. Dollar |  |  |  |  |  |  |  |  |
Term deposit | 2.94% |  | - |  | - |  | 1,114,147 |  | 62,043
Overnight | 1.99% |  | 22,795 |  | 57,584 |  | 568,686 |  | 701,386
Other currencies |  |  |  |  |  |  |  |  |
Term deposit | 10.80% |  | - |  | - |  | 653 |  | 117,028
|  |  | 22,795 |  | 57,584 |  | 1,683,486 |  | 880,457
|  |  | 2,933,449 |  | 4,633,816 |  | 8,335,724 |  | 7,528,820

| (1) | Weighted average annual rate.

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| 5. | MARKETABLE SECURITIES

|  |  |  |  | Average rate (2) |  | Parent company |  | Consolidated
| WAM (1) |  | Currency |  |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks (3) | - |  | USD / HKD |  | - |  | - |  | - |  | 11,163 |  | 13,338
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |  |  |
Financial treasury bills | 2.04 |  | R$ |  | 1.90% |  | 353,673 |  | 324,771 |  | 353,673 |  | 324,771
Investment funds - FIDC BRF | 1.21 |  | R$ |  | - |  | 15,000 |  | 15,438 |  | 15,000 |  | 15,438
Committed | 0.75 |  | R$ |  | - |  | - |  | - |  | 64,930 |  | 5,302
Other | 0.24 |  | R$ / ARS |  | - |  | - |  | - |  | 288 |  | 16,782
|  |  |  |  |  |  | 368,673 |  | 340,209 |  | 433,891 |  | 362,293
Amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |
Sovereign bonds and other (4) | 2.58 |  | AOA |  | 3.82% |  | - |  | - |  | 418,025 |  | 418,637
|  |  |  |  |  |  | 368,673 |  | 340,209 |  | 863,079 |  | 794,268
Current |  |  |  |  |  |  | 353,673 |  | 324,771 |  | 418,891 |  | 346,855
Non-current (5) |  |  |  |  |  |  | 15,000 |  | 15,438 |  | 444,188 |  | 447,413

| (1) | Weighted average maturity in years.

| (2) | Weighted average annual rate.

| (3) | It’s comprised of Aleph Farms Ltd. stocks.

| (4) | It’s comprised of private securities and sovereign securities of the Angola Government and are presented net of expected credit losses in the amount of R$12,897 (R$18,630 on December 31, 2021).

| (5) | Maturity until December of 2023.

On September 30, 2022, the amount of R$140,941 (R$232,821 on December 31, 2021) classified as cash and cash equivalents and marketable securities were pledged as guarantee, with no use restrictions, for future contracts traded on B3.

| 6. | TRADE ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Trade accounts receivable |  |  |  |  |  |  |
Domestic market |  |  |  |  |  |  |
Third parties | 922,963 |  | 1,504,012 |  | 1,052,610 |  | 1,610,300
Related parties | 27,086 |  | 6,230 |  | - |  | -
Foreign market |  |  |  |  |  |  |
Third parties | 569,678 |  | 578,747 |  | 3,636,911 |  | 3,087,642
Related parties | 5,091,369 |  | 5,718,547 |  | - |  | -
| 6,611,096 |  | 7,807,536 |  | 4,689,521 |  | 4,697,942
( - ) Adjustment to present value | (12,918) |  | (10,688) |  | (16,758) |  | (14,394)
( - ) Expected credit losses | (570,075) |  | (588,946) |  | (614,943) |  | (638,583)
| 6,028,103 |  | 7,207,902 |  | 4,057,820 |  | 4,044,965
Current | 6,022,973 |  | 7,202,530 |  | 4,052,463 |  | 4,039,155
Non-current | 5,130 |  | 5,372 |  | 5,357 |  | 5,810
Other receivables |  |  |  |  |  |  |
Other receivables | 63,795 |  | 114,563 |  | 63,795 |  | 114,565
( - ) Adjustment to present value | (673) |  | (1,609) |  | (673) |  | (1,610)
( - ) Expected credit losses | (15,556) |  | (15,785) |  | (15,556) |  | (15,786)
| 47,566 |  | 97,169 |  | 47,566 |  | 97,169
Current | 31,463 |  | 68,001 |  | 31,463 |  | 68,001
Non-current (1) | 16,103 |  | 29,168 |  | 16,103 |  | 29,168

| (1) | Weighted average maturity of 1.55 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 September 30, 2022, FIDC BRF had an outstanding balance of

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R$854,939 (R$902,679 on December 31, 2021) in the parent company and consolidated related to such credit rights, which were written-off of the Company’s statement of financial position when the credits were sold.

On September 30, 2022, other receivables are mainly represented by receivables from the sale of farms and various properties, with a balance of R$36,023 (R$88,098 on December 31, 2021).

The movements of the expected credit losses are presented below:

Parent company | Consolidated
| 09.30.22 |  | 09.30.22
Beginning balance | (588,946) |  | (638,583)
(Additions) Reversals | (7,274) |  | (7,801)
Write-offs | 8,770 |  | 10,149
Exchange rate variation | 17,375 |  | 21,292
Ending balance | (570,075) |  | (614,943)

The aging of trade accounts receivable is as follows:

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Not overdue | 6,012,002 |  | 7,199,276 |  | 3,675,945 |  | 3,933,343
Overdue |  |  |  |  |  |  |
01 to 60 days | 20,764 |  | 21,934 |  | 373,520 |  | 127,249
61 to 90 days | 2,695 |  | 1,036 |  | 9,058 |  | 6,241
91 to 120 days | 1,466 |  | 794 |  | 5,450 |  | 3,770
121 to 180 days | 5,268 |  | 1,481 |  | 9,791 |  | 3,002
181 to 360 days | 3,803 |  | 4,950 |  | 14,361 |  | 9,687
More than 360 days | 565,098 |  | 578,065 |  | 601,396 |  | 614,650
( - ) Adjustment to present value | (12,918) |  | (10,688) |  | (16,758) |  | (14,394)
( - ) Expected credit losses | (570,075) |  | (588,946) |  | (614,943) |  | (638,583)
| 6,028,103 |  | 7,207,902 |  | 4,057,820 |  | 4,044,965

| 7. | INVENTORIES

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Finished goods | 3,613,032 |  | 3,170,964 |  | 5,885,298 |  | 4,914,882
Work in progress | 277,873 |  | 253,801 |  | 306,377 |  | 272,997
Raw materials | 2,043,461 |  | 2,768,167 |  | 2,295,821 |  | 3,126,017
Packaging materials | 134,596 |  | 145,392 |  | 187,950 |  | 182,501
Secondary materials | 768,869 |  | 755,623 |  | 816,463 |  | 790,801
Supplies | 171,071 |  | 190,693 |  | 235,866 |  | 250,475
Imports in transit | 119,856 |  | 115,873 |  | 121,985 |  | 115,950
Other | 99,138 |  | 141,322 |  | 99,680 |  | 142,490
(-) Adjustment to present value | (223,419) |  | (138,332) |  | (231,615) |  | (141,243)
| 7,004,477 |  | 7,403,503 |  | 9,717,825 |  | 9,654,870

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:

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| Parent company
|  |  |  |  |  |  | 09.30.22
| Realizable value through sale | Impaired inventories | Obsolete inventories | Total
Beginning balance | (19,103) |  | (45,084) |  | (5,790) |  | (69,977)
Additions | (243,677) |  | (105,966) |  | (3,733) |  | (353,376)
Reversals | 215,403 |  | - |  | - |  | 215,403
Write-offs | - |  | 100,557 |  | 3,627 |  | 104,184
Ending balance | (47,377) |  | (50,493) |  | (5,896) |  | (103,766)

| Consolidated
|  |  |  |  |  |  | 09.30.22
| Realizable value through sale | Impaired inventories | Obsolete inventories | Total
Beginning balance | (31,026) |  | (54,015) |  | (11,654) |  | (96,695)
Additions | (262,586) |  | (134,670) |  | (6,170) |  | (403,426)
Reversals | 239,556 |  | - |  | - |  | 239,556
Write-offs | - |  | 132,343 |  | 6,805 |  | 139,148
Restatement by Hyperinflation | (569) |  | (227) |  | (173) |  | (969)
Exchange rate variation | (1,069) |  | (143) |  | (95) |  | (1,307)
Ending balance | (55,694) |  | (56,712) |  | (11,287) |  | (123,693)

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 38

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| 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
|  |  |  |  |  |  |  |  |  |  |  |  | 09.30.22
| Current | Non-current
| Live animals | Live animals |  |  |
| Poultry | Pork | Total | Poultry | Pork | Forests | Total
Beginning balance | 1,040,204 |  | 1,746,488 |  | 2,786,692 |  | 505,778 |  | 540,298 |  | 320,937 |  | 1,367,013
Additions/Transfer | 11,459,906 |  | 8,126,026 |  | 19,585,932 |  | 83,419 |  | 377,129 |  | 47,212 |  | 507,760
Changes in fair value (1) | 1,912,519 |  | 147,258 |  | 2,059,777 |  | 63,333 |  | (210,304) |  | - |  | (146,971)
Harvest | - |  | - |  | - |  | - |  | - |  | (52,745) |  | (52,745)
Write-off | - |  | - |  | - |  | - |  | - |  | (560) |  | (560)
Transfer between current and non-current | 70,926 |  | 111,922 |  | 182,848 |  | (70,926) |  | (111,922) |  | - |  | (182,848)
Transfer to inventories | (13,411,239) |  | (8,401,996) |  | (21,813,235) |  | - |  | - |  | - |  | -
Ending balance | 1,072,316 |  | 1,729,698 |  | 2,802,014 |  | 581,604 |  | 595,201 |  | 314,844 |  | 1,491,649
| Consolidated
|  |  |  |  |  |  |  |  |  |  |  |  | 09.30.22
| Current | Non-current
| Live animals | Live animals |  |  |
| Poultry | Pork | Total | Poultry | Pork | Forests | Total
Beginning balance | 1,153,433 |  | 1,746,488 |  | 2,899,921 |  | 553,247 |  | 540,298 |  | 320,937 |  | 1,414,482
Additions/Transfer | 13,046,676 |  | 8,126,027 |  | 21,172,703 |  | 121,599 |  | 377,129 |  | 47,212 |  | 545,940
Changes in fair value (1) | 2,821,074 |  | 147,258 |  | 2,968,332 |  | 49,327 |  | (210,304) |  | - |  | (160,977)
Harvest | - |  | - |  | - |  | - |  | - |  | (52,745) |  | (52,745)
Write-off | - |  | - |  | - |  | - |  | - |  | (560) |  | (560)
Transfer between current and non-current | 79,939 |  | 111,922 |  | 191,861 |  | (79,939) |  | (111,922) |  | - |  | (191,861)
Transfer to inventories | (15,814,256) |  | (8,401,997) |  | (24,216,253) |  | - |  | - |  | - |  | -
Exchange variation | (41,439) |  | - |  | (41,439) |  | (18,271) |  | - |  | - |  | (18,271)
Restatement by Hyperinflation | 5,871 |  | - |  | 5,871 |  | 25,227 |  | - |  | - |  | 25,227
Ending balance | 1,251,298 |  | 1,729,698 |  | 2,980,996 |  | 651,190 |  | 595,201 |  | 314,844 |  | 1,561,235

| (1) | The change in the fair value of biological assets includes depreciation of breeders and depletion of forests in the amount of R$835,396 in the parent company and R$888,633 in the consolidated.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 39

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

| Parent company
| 09.30.22 |  | 12.31.21
| Quantity (thousand of heads) |  | Book value |  | Quantity (thousand of heads) |  | Book value
Consumable biological assets |  |  |  |  |  |  |
Immature poultry | 167,981 |  | 1,072,316 |  | 176,802 |  | 1,040,204
Immature pork | 4,011 |  | 1,729,698 |  | 4,469 |  | 1,746,488
Total current | 171,992 |  | 2,802,014 |  | 181,271 |  | 2,786,692
Production biological assets |  |  |  |  |  |  |
Immature poultry | 6,015 |  | 208,627 |  | 5,510 |  | 174,706
Mature poultry | 10,374 |  | 372,977 |  | 10,420 |  | 331,072
Immature pork | 209 |  | 135,156 |  | 223 |  | 141,101
Mature pork | 457 |  | 460,045 |  | 452 |  | 399,197
Total non-current | 17,055 |  | 1,176,805 |  | 16,605 |  | 1,046,076
| 189,047 |  | 3,978,819 |  | 197,876 |  | 3,832,768
| Consolidated
| 09.30.22 |  | 12.31.21
| Quantity (thousand of heads) |  | Book value |  | Quantity (thousand of heads) |  | Book value
Consumable biological assets |  |  |  |  |  |  |
Immature poultry | 189,894 |  | 1,251,298 |  | 197,859 |  | 1,153,433
Immature pork | 4,011 |  | 1,729,698 |  | 4,469 |  | 1,746,488
Total current | 193,905 |  | 2,980,996 |  | 202,328 |  | 2,899,921
Production biological assets |  |  |  |  |  |  |
Immature poultry | 6,722 |  | 231,601 |  | 6,170 |  | 192,017
Mature poultry | 11,420 |  | 419,589 |  | 11,621 |  | 361,230
Immature pork | 209 |  | 135,156 |  | 223 |  | 141,101
Mature pork | 457 |  | 460,045 |  | 452 |  | 399,197
Total non-current | 18,808 |  | 1,246,391 |  | 18,466 |  | 1,093,545
| 212,713 |  | 4,227,387 |  | 220,794 |  | 3,993,466

The Company has forests pledged as collateral for financing and tax and civil contingencies on September 30, 2022 in the amount of R$64,265 in the parent company and in the consolidated (R$69,308 in the parent company and in the consolidated on December 31, 2021).

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 40

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| 9. | RECOVERABLE TAXES

The rollforward of recoverable taxes are set forth below:

|  |  |  | Parent company
|  | Note |  | 12.31.21 |  | Additions |  | Offset / Reversals |  | Transfers (1) |  | Interest |  | 09.30.22
ICMS and VAT |  | 9.1 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable ICMS and VAT |  |  |  | 1,811,678 |  | 453,870 |  | (91,159) |  | (154,995) |  | 178 |  | 2,019,572
(-) Impairment |  |  |  | (137,589) |  | (26,360) |  | 17,513 |  | 14,603 |  | - |  | (131,833)
PIS and COFINS |  | 9.2 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable PIS and COFINS |  |  |  | 2,658,067 |  | 382,111 |  | (664,969) |  | - |  | 101,454 |  | 2,476,663
(-) Impairment |  |  |  | (14,228) |  | - |  | - |  | - |  | - |  | (14,228)
IPI |  | 9.3 |  |  |  |  |  |  |  |  |  |  |  |
Recoverable IPI |  |  |  | 928,037 |  | 4,428 |  | (7,018) |  | - |  | 76,415 |  | 1,001,862
(-) Impairment |  |  |  | (1,984) |  | - |  | 1,984 |  | - |  | - |  | -
INSS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable INSS |  |  |  | 318,126 |  | 18,752 |  | (2) |  | - |  | 15,248 |  | 352,124
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other recoverable taxes |  |  |  | 85,803 |  | 1,721 |  | (1,378) |  | - |  | - |  | 86,146
(-) Impairment |  |  |  | (530) |  | (575) |  | 11 |  | - |  | - |  | (1,094)
|  |  |  | 5,647,380 |  | 833,947 |  | (745,018) |  | (140,392) |  | 193,295 |  | 5,789,212
Current |  |  |  | 881,927 |  |  |  |  |  |  |  |  |  | 671,421
Non-current |  |  |  | 4,765,453 |  |  |  |  |  |  |  |  |  | 5,117,791
|  |  |  | 12.31.21 |  | Additions |  | Offset / Reversals |  | Transfers (1) |  | Restatement |  | 09.30.22
Income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable income taxes |  |  |  | 240,652 |  | 58,218 |  | (26,151) |  | - |  | 27,689 |  | 300,408
(-) Impairment |  |  |  | (15,889) |  | - |  | - |  | - |  | - |  | (15,889)
|  |  |  | 224,763 |  | 58,218 |  | (26,151) |  | - |  | 27,689 |  | 284,519
Current |  |  |  | 29,784 |  |  |  |  |  |  |  |  |  | 70,919
Non-current |  |  |  | 194,979 |  |  |  |  |  |  |  |  |  | 213,600

| (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 |  | 12.31.21 |  | Additions |  | Offset / Reversals |  | Transfers (1) |  | Interest |  | Exchange variation |  | 09.30.22
ICMS and VAT |  | 9.1 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable ICMS and VAT |  |  |  | 1,886,027 |  | 621,671 |  | (120,490) |  | (154,995) |  | 179 |  | (20,928) |  | 2,211,464
(-) Impairment |  |  |  | (137,854) |  | (26,360) |  | 17,512 |  | 14,602 |  | - |  | - |  | (132,100)
PIS and COFINS |  | 9.2 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable PIS and COFINS |  |  |  | 2,685,276 |  | 382,562 |  | (674,771) |  | - |  | 101,455 |  | - |  | 2,494,522
(-) Impairment |  |  |  | (14,228) |  | - |  | - |  | - |  | - |  | - |  | (14,228)
IPI |  | 9.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable IPI |  |  |  | 929,645 |  | 4,591 |  | (7,062) |  | - |  | 76,413 |  | - |  | 1,003,587
(-) Impairment |  |  |  | (1,984) |  | - |  | 1,984 |  | - |  | - |  | - |  | -
INSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable INSS |  |  |  | 318,138 |  | 20,592 |  | (1,842) |  | - |  | 15,248 |  | - |  | 352,136
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other recoverable taxes |  |  |  | 92,216 |  | 1,843 |  | (6,220) |  | - |  | - |  | (94) |  | 87,745
(-) Impairment |  |  |  | (1,007) |  | (575) |  | 32 |  | - |  | - |  | - |  | (1,550)
|  |  |  | 5,756,229 |  | 1,004,324 |  | (790,857) |  | (140,393) |  | 193,295 |  | (21,022) |  | 6,001,576
Current |  |  |  | 976,133 |  |  |  |  |  |  |  |  |  |  |  | 879,358
Non-current |  |  |  | 4,780,096 |  |  |  |  |  |  |  |  |  |  |  | 5,122,218
|  |  |  | 12.31.21 |  | Additions |  | Offset / Reversals |  | Transfers (1) |  | Interest |  | Exchange variation |  | 09.30.22
Income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recoverable income taxes |  |  |  | 294,050 |  | 140,537 |  | (51,938) |  | - |  | 27,691 |  | (11,926) |  | 398,414
(-) Impairment |  |  |  | (15,933) |  | - |  | - |  | - |  | - |  | - |  | (15,933)
|  |  |  | 278,117 |  | 140,537 |  | (51,938) |  | - |  | 27,691 |  | (11,926) |  | 382,481
Current |  |  |  | 71,762 |  |  |  |  |  |  |  |  |  |  |  | 157,655
Non-current |  |  |  | 206,355 |  |  |  |  |  |  |  |  |  |  |  | 224,826

| (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 – September 30, 2022 | 41

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

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

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

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

As of September 30, 2022, the updated balance of the processes related to the exclusion of the ICMS from the PIS and COFINS calculation basis recognized by the Company is R$2,135,212 (R$2,341,737 as of December 31, 2021). The amount of R$307,979 related to these credits was offset against other federal taxes in the nine-month period ended on September 30, 2022 (R$554,287 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 according to the expectation below:

| PIS and COFINS
Current | 320,942
Non-current | 1,814,270
2023 | 718,149
2024 | 687,602
2025 | 408,519
| 2,135,212

9.3. | 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 September 30, 2022 is R$1,018,653 (R$945,845 on December 31, 2021), of which R$996,396 (R$919,982 on December 31, 2021) is recorded as Recoverable Taxes and the remainder, referring to cases in which the government will reimburse in cash, is recorded as Other Non-Current Assets, in the amount of R$22,257 (R$16,927 on December 31, 2021).

According to projections prepared by the Management, its realization is estimated through the refund of the amounts as expected below:

| IPI
Non-current | 1,018,653
2023 | 22,257
2025 | 732,068
2026 | 264,328
| 1,018,653

9.4. | Realization of Brazilian federal tax credits

The Company received in cash, through court orders related to recoverable IPI balances, the amount of R$8,936 in the nine-month period ended on September 30, 2022 in the parent company and consolidated (R$1,368 in the same period of the previous year).

The Company used PIS, COFINS, IPI, and other recoverable taxes to offset federal taxes payable such as INSS, Income Taxes and Other in the amount of R$699,519 in the nine-month period ended on September 30, 2022 (R$944,853 in the same period of the previous year), preserving its liquidity and optimizing its capital structure.

| 10. | DEFERRED INCOME TAXES

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 42

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10.1. | Breakdown

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Assets |  |  |  |  |  |  |
Tax losses carryforward | 2,828,252 |  | 2,805,912 |  | 2,853,559 |  | 2,822,754
Negative calculation basis (social contribution) | 1,018,171 |  | 1,040,511 |  | 1,027,281 |  | 1,046,574
Temporary differences - Assets |  |  |  |  |  |  |
Provisions for tax, civil and labor risks | 465,078 |  | 456,206 |  | 467,444 |  | 458,229
Expected credit losses | 178,287 |  | 184,230 |  | 182,358 |  | 184,643
Impairment on tax credits | 56,236 |  | 64,297 |  | 56,236 |  | 64,297
Provision for other obligations | 104,148 |  | 136,571 |  | 118,171 |  | 150,609
Employees' profit sharing | 40,791 |  | 47,227 |  | 40,791 |  | 47,227
Write-down to net realizable value of inventories | 35,621 |  | 25,204 |  | 40,533 |  | 27,934
Employees' benefits plan | 145,608 |  | 137,174 |  | 155,294 |  | 148,990
Lease basis difference | 119,884 |  | 95,563 |  | 120,186 |  | 95,563
Unrealized losses on derivatives, net | - |  | 21,310 |  | - |  | 21,310
Other temporary differences | 13,552 |  | 20,501 |  | 45,003 |  | 42,566
| 5,005,628 |  | 5,034,706 |  | 5,106,856 |  | 5,110,696
Temporary differences - Liabilities |  |  |  |  |  |  |
Goodwill amortization basis difference | (322,720) |  | (307,442) |  | (322,720) |  | (307,442)
Depreciation (useful life) basis difference | (918,610) |  | (884,245) |  | (921,485) |  | (895,407)
Business combination (1) | (961,812) |  | (900,108) |  | (979,489) |  | (920,214)
Restatement by Hyperinflation | - |  | - |  | (73,323) |  | -
Unrealized gains on derivatives, net | (85,029) |  | - |  | (84,673) |  | -
Unrealized fair value gains, net | (50,869) |  | (37,109) |  | (51,298) |  | (37,692)
Other temporary differences | (15,813) |  | (20,415) |  | (31,174) |  | (32,381)
| (2,354,853) |  | (2,149,319) |  | (2,464,162) |  | (2,193,136)
Total deferred taxes | 2,650,775 |  | 2,885,387 |  | 2,642,694 |  | 2,917,560
Total Assets | 2,650,775 |  | 2,885,387 |  | 2,734,379 |  | 2,941,270
Total Liabilities | - |  | - |  | (91,685) |  | (23,710)
| 2,650,775 |  | 2,885,387 |  | 2,642,694 |  | 2,917,560

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

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

Parent company | Consolidated
| 09.30.22 |  | 09.30.22
Beginning balance | 2,885,387 |  | 2,917,560
Deferred income taxes recognized in income from continuing operations | (118,552) |  | (95,725)
Deferred income taxes recognized in other comprehensive income | (116,015) |  | (116,015)
Deferred income and social contribution taxes recognized in business combination | (45) |  | (45)
Deferred taxes recognized in accumulated losses - monetary correction for hyperinflation | - |  | (32,655)
Other (1) | - |  | (30,426)
Ending balance | 2,650,775 |  | 2,642,694

| (1) | Related to the foreign exchange variation effect on the balances in foreign companies and to non-controlling interests.

10.2. | Estimated period of realization

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

In estimating the realization of deferred tax credits on tax losses carryforward, Management considers its budget and strategic plans, which were approved by the Board of Directors, adjusted for changes in economic assumptions and based on the estimates of the main tax additions and exclusions. The recoverability study done annually 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 presented below:

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 43

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| Parent company |  | Consolidated
2022 | 50,574 |  | 50,574
2023 | 307,778 |  | 309,537
2024 | 294,687 |  | 299,366
2025 | 352,431 |  | 359,969
2026 | 392,953 |  | 400,725
2027 to 2029 | 1,362,961 |  | 1,375,542
2030 and 2031 | 1,085,039 |  | 1,085,127
| 3,846,423 |  | 3,880,840

The Company has tax losses carryforward in Brazil, which at current tax rates represent R$7,118,902 on September 30, 2022 (R$6,204,203 on December 31, 2021). Within this amount, R$3,846,423 on September 30, 2022 and (R$3,846,423 on December 31, 2021) are recognized as an asset, according to the recoverability expectation. The deferred tax credits on tax losses and negative social contribution basis related to the parent company and its subsidiaries domiciled in Brazil do not expire and the use to offset income taxes payable is limited to 30% of future taxable income.

10.3. | Effective income tax rate reconciliation

| Parent company |  | Consolidated
|  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Income (loss) before taxes - continued operations | (113,874) |  | (2,094,184) |  | (249,750) |  | (455,370) |  | (118,981) |  | (1,889,986) |  | (254,478) |  | (408,263)
Nominal tax rate | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34% |  | 34%
Benefit (expense) at nominal rate | 38,717 |  | 712,023 |  | 84,915 |  | 154,826 |  | 40,454 |  | 642,595 |  | 86,523 |  | 138,809
Adjustments to income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from associates and joint ventures | 217,664 |  | (1,482) |  | 260,864 |  | 24,616 |  | - |  | - |  | - |  | -
Difference of tax rates on results of foreign subsidiaries | - |  | - |  | - |  | - |  | 338,352 |  | 643,533 |  | 3,969 |  | 26,062
Difference of functional currency of foreign subsidiaries | - |  | - |  | - |  | - |  | (131,809) |  | (710,973) |  | 264,645 |  | (25,589)
Deferred tax assets not recognized (1) | (314,836) |  | (954,256) |  | (420,364) |  | (792,387) |  | (314,836) |  | (954,256) |  | (420,364) |  | (792,387)
Interest on taxes | 19,695 |  | 64,316 |  | - |  | - |  | 19,754 |  | 64,418 |  | - |  | -
Share-based payment | (3,255) |  | (13,289) |  | (6,928) |  | (18,215) |  | (3,255) |  | (13,289) |  | (6,928) |  | (18,215)
Penalties | (1,133) |  | (2,780) |  | (3,686) |  | (7,008) |  | (1,133) |  | (2,780) |  | (3,690) |  | (7,012)
Tax paid on international subsidiaries | 9,541 |  | 9,541 |  | - |  | - |  | 9,541 |  | 9,541 |  | - |  | -
Investment grant | 36,108 |  | 80,683 |  | 25,293 |  | 59,454 |  | 36,108 |  | 80,683 |  | 25,293 |  | 59,454
Adjustment to the expcted annual rate | - |  | - |  | 38,464 |  | 557,112 |  | - |  | - |  | 38,464 |  | 557,112
Other permanent differences | (11,197) |  | (3,801) |  | (4,408) |  | 22,958 |  | (10,980) |  | (3,849) |  | (4,417) |  | 22,948
| (8,696) |  | (109,045) |  | (25,850) |  | 1,356 |  | (17,804) |  | (244,377) |  | (16,505) |  | (38,818)
Effective rate | -7.6% |  | -5.2% |  | -10.4% |  | 0.3% |  | -15.0% |  | -12.9% |  | -6.5% |  | -9.5%
Current tax | 9,122 |  | 9,507 |  | - |  | (256,090) |  | (10,187) |  | (148,652) |  | 5,020 |  | (310,621)
Deferred tax | (17,818) |  | (118,552) |  | (25,850) |  | 257,446 |  | (7,617) |  | (95,725) |  | (21,525) |  | 271,803

| (1) | Amount related to the non-recognition of deferred tax on tax losses carryforward in the parent company and in the consolidated, due to limited capacity of realization (note 10.2).

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 according to the tax laws of each country.

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 44

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| 11. | JUDICIAL DEPOSITS

The rollforward of the judicial deposits is set forth below:

| Parent company
|  |  |  |  |  |  | 09.30.22
| Tax | Labor | Civil, commercial and other | Total
Beginning balance | 257,244 |  | 245,136 |  | 43,251 |  | 545,631
Additions | 3,410 |  | 73,226 |  | 18,884 |  | 95,520
Release in favor of the Company | (13,302) |  | (19,909) |  | (328) |  | (33,539)
Release in favor of the counterparty | (661) |  | (88,024) |  | (2,070) |  | (90,755)
Interest | 11,048 |  | 15,791 |  | 2,879 |  | 29,718
Ending balance | 257,739 |  | 226,220 |  | 62,616 |  | 546,575

| Consolidated
|  |  |  |  |  |  | 09.30.22
| Tax | Labor | Civil, commercial and other | Total
Beginning balance | 259,468 |  | 246,007 |  | 44,844 |  | 550,319
Additions | 3,550 |  | 73,614 |  | 24,170 |  | 101,334
Release in favor of the Company | (13,302) |  | (19,930) |  | (328) |  | (33,560)
Release in favor of the counterparty | (661) |  | (88,088) |  | (4,716) |  | (93,465)
Interest | 11,251 |  | 15,798 |  | 3,141 |  | 30,190
Exchange rate variation | - |  | (17) |  | - |  | (17)
Ending balance | 260,306 |  | 227,384 |  | 67,111 |  | 554,801

| 12. | INVESTMENTS

12.1. | Partnership with AES Brasil Energia S.A.

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

The partnership was closed on March 14, 2022, with the subscription of the shares of Potengi Holdings S.A. and partial capital contribution by BRF S.A. in the amount of R$60,060. From that date, BRF became owner of 50% of the capital stock and 24% of the economic rights of Potengi Holdings S.A., affiliated entity. On June 13, 2022, BRF S.A. made an additional capital contribution to the capital already subscribed, in the amount of R$6,805 and on July 1st made an advance for future capital increase in the amount of R$25,226

The operation of the park is scheduled to begin by 2024.

12.2. | Composition and the rollforward the investments

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Investments | 14,051,518 |  | 13,269,365 |  | 99,854 |  | 6,520
Participation in subsidiaries | 13,951,664 |  | 13,262,845 |  | - |  | -
Participation in affiliates | 99,854 |  | 6,520 |  | 99,854 |  | 6,520
Other investments | 583 |  | 583 |  | 594 |  | 593
| 14,052,101 |  | 13,269,948 |  | 100,448 |  | 7,113

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The rollforward of the direct investments in subsidiaries and affiliates of the parent company during the nine-month period is set forth below:

| Subsidiaries |  | Affiliates |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total
| BRF Energia S.A. |  | BRF GmbH |  | Establec. Levino Zaccardi |  | BRF Pet S.A. |  | PSA Labor. Veter. Ltda |  | Hercosul International S.R.L. |  | Sadia Alimentos S.A. |  | Proud Food Lda |  | Sadia Uruguay S.A. |  | Sadia Chile S.A. |  | Eclipse Holding Cooperatief |  | VIP S.A. Empr. e Particip. Imob |  | Potengi Holdings S.A. (1) |  | PR-SAD Adm. Bem próprio S.A. |  | 09.30.22
a) Participation as of September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
% of participation | 100.00% |  | 100.00% |  | 99.99% |  | 100.00% |  | 99.99% |  | 1.00% |  | 43.10% |  | 10.00% |  | 100.00% |  | 60.00% |  | 0.01% |  | 100.00% |  | 50.00% |  | 33.33% |  |
Total quantity of shares and quotas | 7,176,530 |  | 1 |  | 9,918,875 |  | 2,087,898,669 |  | 5,463,850 |  | 200,000 |  | 594,576,682 |  | 150,000 |  | 2,352,881,073 |  | 3,027,987,368 |  | 10,000 |  | 14,249,459 |  | 184,199,688 |  | - |  |
Quantity of shares and quotas held | 7,176,530 |  | 1 |  | 9,918,538 |  | 2,087,898,669 |  | 5,463,849 |  | 2,000 |  | 256,253,695 |  | 15,000 |  | 2,352,881,073 |  | 1,816,792,421 |  | 1 |  | 14,249,459 |  | 92,090,655 |  | - |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  |
b) Information as of September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share capital | 7,177 |  | 6,523 |  | 1,765 |  | 1,152,740 |  | 5,564 |  | 94,080 |  | 338,054 |  | 3 |  | 497,012 |  | 16,169 |  | 334,999 |  | 1,311 |  | - |  | - |  |
Shareholders' equity | 594 |  | 12,570,369 |  | 73 |  | 1,105,180 |  | 8,510 |  | 66,276 |  | 4,230 |  | 8,297 |  | 90,315 |  | (88,248) |  | (2,128) |  | 2,501 |  | - |  | - |  |
Fair value of assets and liabilities acquired | - |  | - |  | - |  | - |  | - |  | 145 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  |
Goodwill | - |  | - |  | - |  | - |  | - |  | 312 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  |
Income (loss) for the period | (2) |  | 53,559 |  | 118 |  | (28,352) |  | 389 |  | 1,273 |  | 1,446 |  | 330 |  | (9,162) |  | (32,285) |  | (2,766) |  | 151 |  | - |  | - |  |
c) Movements of investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance (12.31.21) | 596 |  | 12,101,820 |  | 77 |  | 1,051,231 |  | 8,121 |  | 772 |  | 1,942 |  | 614 |  | 95,322 |  | - |  | - |  | 2,350 |  | - |  | 6,520 |  | 13,269,365
Result Movements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) | (2) |  | 53,559 |  | 118 |  | (28,380) |  | 389 |  | 304 |  | (1,361) |  | 33 |  | (9,498) |  | (20,317) |  | - |  | 151 |  | 644 |  | - |  | (4,360)
Capital movements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital increase (reduction) | - |  | - |  | - |  | 253,348 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 6,805 |  | 599 |  | 260,752
Advance for future capital increase | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 25,226 |  | - |  | 25,226
Capital transaction between subsidiaries | - |  | 192,144 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 192,144
Acquisition (sale) of equity interest | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 60,060 |  | - |  | 60,060
Exchange rate variation on goodwill | - |  | - |  | - |  | - |  | - |  | 26 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 26
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other comprehensive income | - |  | 273,795 |  | (122) |  | (671) |  | - |  | 18 |  | 1,242 |  | 183 |  | 4,491 |  | 5,167 |  | - |  | - |  | - |  | - |  | 284,103
Constitution (reversal) of provision for loss | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 15,150 |  | - |  | - |  | - |  | - |  | 15,150
Discontinued operations | - |  | (50,948) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (50,948)
Ending balance (09.30.22) | 594 |  | 12,570,370 |  | 73 |  | 1,275,528 |  | 8,510 |  | 1,120 |  | 1,823 |  | 830 |  | 90,315 |  | - |  | - |  | 2,501 |  | 92,735 |  | 7,119 |  | 14,051,518

| (1) | Economic participation of 24%.

On September 30, 2022, these subsidiaries and affiliates do not have any restriction to amortize their loans or advances to the Company.

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| 13. | PROPERTY, PLANT AND EQUIPMENT

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

| Parent company
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | Transfers (2) |  | 09.30.22
Cost |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 554,968 |  | 9,563 |  | (1,231) |  | 7,602 |  | 570,902
Buildings, facilities and improvements |  |  | 10,436,213 |  | 624,325 |  | (33,439) |  | 345,301 |  | 11,372,400
Machinery and equipment |  |  | 8,109,401 |  | 10,372 |  | (147,325) |  | 597,311 |  | 8,569,759
Furniture and fixtures |  |  | 113,358 |  | 143 |  | (1,311) |  | 16,797 |  | 128,987
Vehicles |  |  | 203,697 |  | 14,828 |  | (2,591) |  | - |  | 215,934
Construction in progress |  |  | 1,096,575 |  | 1,001,833 |  | - |  | (974,206) |  | 1,124,202
Advances to suppliers |  |  | 7,523 |  | (5,393) |  | - |  | - |  | 2,130
|  |  | 20,521,735 |  | 1,655,671 |  | (185,897) |  | (7,195) |  | 21,984,314
Depreciation |  |  |  |  |  |  |  |  |  |  |
Land (3) | 20.97% |  | (20,305) |  | (5,178) |  | 234 |  | (3) |  | (25,252)
Buildings, facilities and improvements | 9.51% |  | (4,188,543) |  | (478,334) |  | 26,832 |  | (273) |  | (4,640,318)
Machinery and equipment | 6.31% |  | (4,420,596) |  | (372,817) |  | 131,755 |  | 406 |  | (4,661,252)
Furniture and fixtures | 6.67% |  | (56,748) |  | (4,887) |  | 1,009 |  | (130) |  | (60,756)
Vehicles | 29.79% |  | (112,332) |  | (43,666) |  | 1,813 |  | - |  | (154,185)
|  |  | (8,798,524) |  | (904,882) |  | 161,643 |  | - |  | (9,541,763)
|  |  | 11,723,211 |  | 750,789 |  | (24,254) |  | (7,195) |  | 12,442,551

| (1) | Weighted average annual rate.

| (2) | Refers to the transfer of R$7,228 to intangible assets and R$15 from property, plant and equipment to goods on lending and R$(48) from assets held for sale.

| (3) | Land depreciation refers to right-of-use assets. The amount of R$2,797 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).

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| Consolidated
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | Restatement by Hyperinflation |  | Transfers (2) |  | Exchange rate variation |  | 09.30.22
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 710,017 |  | 9,563 |  | (1,547) |  | 50,887 |  | 7,602 |  | (15,287) |  | 761,235
Buildings, facilities and improvements |  |  | 11,294,650 |  | 728,577 |  | (42,173) |  | 80,401 |  | 352,174 |  | (34,859) |  | 12,378,770
Machinery and equipment |  |  | 8,735,375 |  | 20,177 |  | (157,906) |  | 253,903 |  | 636,885 |  | (76,101) |  | 9,412,333
Furniture and fixtures |  |  | 150,865 |  | 268 |  | (2,876) |  | 24,172 |  | 17,594 |  | (6,457) |  | 183,566
Vehicles |  |  | 384,289 |  | 209,761 |  | (3,641) |  | 6,311 |  | - |  | (803) |  | 595,917
Construction in progress |  |  | 1,144,725 |  | 1,085,505 |  | (2,505) |  | 9,659 |  | (1,021,514) |  | (11,286) |  | 1,204,584
Advances to suppliers |  |  | 33,109 |  | 34,824 |  | - |  | - |  | - |  | (7,759) |  | 60,174
|  |  | 22,453,030 |  | 2,088,675 |  | (210,648) |  | 425,333 |  | (7,259) |  | (152,552) |  | 24,596,579
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land (3) | 15.34% |  | (36,788) |  | (9,364) |  | 551 |  | 1,058 |  | (3) |  | 473 |  | (44,073)
Buildings, facilities and improvements | 7.44% |  | (4,494,435) |  | (556,811) |  | 35,926 |  | (21,173) |  | 8,612 |  | 4,364 |  | (5,023,517)
Machinery and equipment | 6.26% |  | (4,612,648) |  | (416,256) |  | 142,747 |  | (93,566) |  | (10,395) |  | 35,594 |  | (4,954,524)
Furniture and fixtures | 6.67% |  | (72,820) |  | (6,986) |  | 1,668 |  | (11,824) |  | (130) |  | 2,843 |  | (87,249)
Vehicles | 23.13% |  | (195,477) |  | (115,182) |  | 2,670 |  | (5,894) |  | 1,856 |  | (1,623) |  | (313,650)
|  |  | (9,412,168) |  | (1,104,599) |  | 183,562 |  | (131,399) |  | (60) |  | 41,651 |  | (10,423,013)
|  |  | 13,040,862 |  | 984,076 |  | (27,086) |  | 293,934 |  | (7,319) |  | (110,901) |  | 14,173,566

| (1) | Weighted average annual rate.

| (2) | Refers to the transfer of R$7,352 for intangible assets and R$15 from property, plant and equipment to goods on lending and R$(48) from assets held for sale.

| (3) | Land depreciation refers to right-of-use assets. The amount of R$2,797 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 – September 30, 2022 | 48

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The amount of capitalized borrowing costs during the nine-month period ended on September 30, 2022 was of R$66,070 in the parent company and R$71,580 in the consolidated (R$36,620 in the parent company and in the consolidated in the same period of the previous year) and during the three-month period ended on September 30, 2022 was of R$18,415 in the parent company and R$19,896 in the consolidated (R$13,278 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 during the nine-month period ended on September 30, 2022 was 8.71% p.a. in the parent company and 9.07% p.a. in the consolidated (7.27% 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 | Consolidated
|  | Type of collateral |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Land |  | Financial/Tax |  | 90,757 |  | 150,420 |  | 90,757 |  | 150,420
Buildings, facilities and improvements |  | Financial/Tax |  | 1,264,776 |  | 1,207,344 |  | 1,267,094 |  | 1,209,662
Machinery and equipment |  | Financial/Labor/Tax/Civil |  | 1,349,442 |  | 1,280,116 |  | 1,350,466 |  | 1,284,033
Furniture and fixtures |  | Financial/Tax |  | 15,561 |  | 14,960 |  | 15,561 |  | 14,960
Vehicles |  | Financial/Tax |  | 189 |  | 276 |  | 189 |  | 276
|  |  |  | 2,720,724 |  | 2,653,116 |  | 2,724,067 |  | 2,659,351

| 14. | INTANGIBLE ASSETS

The intangible assets rollforward is set forth below:

|  |  | Parent company
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | Transfers |  | 09.30.22
Cost |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,783,655 |  | - |  | - |  | - |  | 1,783,655
Trademarks |  |  | 1,152,885 |  | - |  | - |  | - |  | 1,152,885
Non-compete agreement |  |  | 69,950 |  | 3,492 |  | (58,649) |  | - |  | 14,793
Outgrowers relationship |  |  | 4,740 |  | - |  | (249) |  | - |  | 4,491
Patents |  |  | 2,485 |  | - |  | - |  | - |  | 2,485
Software |  |  | 726,021 |  | - |  | (85,938) |  | 152,202 |  | 792,285
Intangible in progress |  |  | 71,072 |  | 167,812 |  | - |  | (144,977) |  | 93,907
|  |  | 3,810,808 |  | 171,304 |  | (144,836) |  | 7,225 |  | 3,844,501
Amortization |  |  |  |  |  |  |  |  |  |  |
Non-compete agreement | 50.00% |  | (68,587) |  | (1,800) |  | 58,649 |  | - |  | (11,738)
Outgrowers relationship | 31.52% |  | (4,425) |  | (120) |  | 249 |  | - |  | (4,296)
Patents | 10.00% |  | (2,301) |  | (18) |  | - |  | - |  | (2,319)
Software | 49.77% |  | (525,159) |  | (117,074) |  | 72,890 |  | - |  | (569,343)
|  |  | (600,472) |  | (119,012) |  | 131,788 |  | - |  | (587,696)
|  |  | 3,210,336 |  | 52,292 |  | (13,048) |  | 7,225 |  | 3,256,805

| (1) | Weighted average annual rate.

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|  |  | Consolidated
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | Business combination (note 1.2) |  | Transfers |  | Restatement by Hyperinflation |  | Exchange rate variation | 09.30.22
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 3,425,183 |  | - |  | - |  | (4,026) |  | - |  | 156,389 |  | (73,246) | 3,504,300
Trademarks |  |  | 1,733,335 |  | - |  | - |  | - |  | - |  | 184,928 |  | (44,165) | 1,874,098
Non-compete agreement |  |  | 110,208 |  | 8,916 |  | (58,650) |  | - |  | - |  | - |  | (956) | 59,518
Outgrowers relationship |  |  | 4,740 |  | - |  | (249) |  | - |  | - |  | - |  | - | 4,491
Patents |  |  | 3,518 |  | - |  | - |  | - |  | - |  | 1,689 |  | (396) | 4,811
Customer relationship |  |  | 1,119,534 |  | - |  | - |  | - |  | - |  | 346,925 |  | (117,148) | 1,349,311
Software |  |  | 770,399 |  | 68 |  | (88,936) |  | - |  | 174,621 |  | 19,227 |  | (8,506) | 866,873
Intangible in progress |  |  | 98,716 |  | 174,286 |  | - |  | - |  | (167,328) |  | 287 |  | (5,962) | 99,999
|  |  | 7,265,633 |  | 183,270 |  | (147,835) |  | (4,026) |  | 7,293 |  | 709,445 |  | (250,379) | 7,763,401
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-compete agreement | 38.26% |  | (106,749) |  | (3,051) |  | 58,649 |  | - |  | - |  | - |  | 1,158 | (49,993)
Outgrowers relationship | 31.52% |  | (4,425) |  | (120) |  | 249 |  | - |  | - |  | - |  | - | (4,296)
Patents | 10.00% |  | (2,928) |  | (309) |  | - |  | - |  | - |  | (749) |  | 227 | (3,759)
Customer relationship | 8.04% |  | (437,774) |  | (76,231) |  | - |  | - |  | - |  | (132,651) |  | 45,989 | (600,667)
Software | 49.30% |  | (563,943) |  | (124,586) |  | 75,913 |  | - |  | 60 |  | (4,582) |  | 4,694 | (612,444)
|  |  | (1,115,819) |  | (204,297) |  | 134,811 |  | - |  | 60 |  | (137,982) |  | 52,068 | (1,271,159)
|  |  | 6,149,814 |  | (21,027) |  | (13,024) |  | (4,026) |  | 7,353 |  | 571,463 |  | (198,311) | 6,492,242

| (1) | Weighted average annual rate.

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| 15. | LOANS AND BORROWINGS

| Parent company
| Charges (p.a.) |  | Average rate (1) |  | WAMT (2) |  | 12.31.21 |  | Borrowing |  | Amortization |  | Interest paid |  | Interest accrued |  | Exchange rate variation |  | 09.30.22
Local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital | Fixed |  | 10.75% (5.14% on 12.31.21) |  | 0.9 |  | 383,342 |  | 386,844 |  | (376,808) |  | (18,473) |  | 16,551 |  | - |  | 391,456
Certificate of agribusiness receivables (3) | IPCA |  | 14.62% (16.57% on 12.31.21) |  | 1.2 |  | 967,948 |  | (242) |  | - |  | (86,620) |  | 96,850 |  | - |  | 977,936
Export credit facility (4) | Fixed / CDI / FX USD |  | 13.06% (10.99% on 12.31.21) |  | 3.0 |  | 3,500,875 |  | 241,000 |  | - |  | (195,307) |  | 210,281 |  | (69,418) |  | 3,687,431
Debentures | CDI / IPCA |  | 14.43% (15.54% on 12.31.21) |  | 8.7 |  | 4,210,015 |  | 1,650,194 |  | (70,000) |  | (198,691) |  | 311,359 |  | - |  | 5,902,877
Fiscal incentives | Fixed |  | 2.40% (2.40% on 12.31.21) |  | - |  | 3,601 |  | 79,265 |  | (53,237) |  | (597) |  | 649 |  | - |  | 29,681
|  |  |  |  |  |  | 9,065,781 |  | 2,357,061 |  | (500,045) |  | (499,688) |  | 635,690 |  | (69,418) |  | 10,989,381
Foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds | Fixed / FX USD and EUR |  | 5.07% (4.92% on 12.31.21) |  | 13.5 |  | 12,764,287 |  | - |  | (2,195,458) |  | (602,732) |  | 452,048 |  | (637,690) |  | 9,780,455
Export credit facility | Fixed / LIBOR /FX USD |  | 7.10% (3.06% on 12.31.21) |  | 3.0 |  | 281,112 |  | - |  | (142,015) |  | (6,525) |  | 4,824 |  | (2,151) |  | 135,245
|  |  |  |  |  |  | 13,045,399 |  | - |  | (2,337,473) |  | (609,257) |  | 456,872 |  | (639,841) |  | 9,915,700
|  |  |  |  |  |  | 22,111,180 |  | 2,357,061 |  | (2,837,518) |  | (1,108,945) |  | 1,092,562 |  | (709,259) |  | 20,905,081
Current |  |  |  |  |  |  | 2,790,926 |  |  |  |  |  |  |  |  |  |  |  | 2,751,314
Non-current |  |  |  |  |  |  | 19,320,254 |  |  |  |  |  |  |  |  |  |  |  | 18,153,767

| (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) | On September 30, 2022, includes the amount of R$2,070,568 (R$2,160,061 on December 31, 2021) referring to an Export Credit Facility issued in Reais simultaneously and in connection with a foreign exchange rate swap, resulting essentially in a net cash flow in U.S. Dollars. As the transactions are inseparable, both are recorded together under Loans and Borrowings by their amortized cost.

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| Consolidated
| Charges (p.a.) |  | Average rate (1) |  | WAMT (2) |  | 12.31.21 |  | Borrowing |  | Amortization |  | Interest paid |  | Interest accrued |  | Exchange rate variation |  | 09.30.22
Local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Working capital | Fixed / CDI |  | 10.72% (5.24% on 12.31.21) |  | 0.9 |  | 406,962 |  | 386,844 |  | (391,446) |  | (18,473) |  | 16,927 |  | (366) |  | 400,448
Certificate of agribusiness receivables (3) | IPCA |  | 14.62% (16.57% on 12.31.21) |  | 1.2 |  | 967,948 |  | (242) |  | - |  | (86,620) |  | 96,850 |  | - |  | 977,936
Development bank credit lines | TJLP / TLP/ IPCA / FINAME |  | (3.12% on 12.31.21) |  | - |  | 7,679 |  | - |  | (6,328) |  | (1,472) |  | 121 |  | - |  | -
Debentures | CDI / IPCA |  | 14.43% (15.54% on 12.31.21) |  | 8.7 |  | 4,210,015 |  | 1,650,194 |  | (70,000) |  | (198,691) |  | 311,359 |  | - |  | 5,902,877
Export credit facility (4) | Fixed / CDI / FX USD |  | 8.11% (10.87% on 12.31.21) |  | 4.7 |  | 3,516,273 |  | 241,000 |  | (15,706) |  | (195,307) |  | 210,589 |  | (69,418) |  | 3,687,431
Fiscal incentives | Fixed |  | 2.40% (2.40% on 12.31.21) |  | - |  | 3,601 |  | 79,265 |  | (53,237) |  | (597) |  | 649 |  | - |  | 29,681
|  |  |  |  |  |  | 9,112,478 |  | 2,357,061 |  | (536,717) |  | (501,160) |  | 636,495 |  | (69,784) |  | 10,998,373
Foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds | Fixed / FX USD and EUR |  | 4.92% (4.82% on 12.31.21) |  | 11.5 |  | 15,544,012 |  | - |  | (2,195,458) |  | (719,505) |  | 540,156 |  | (714,730) |  | 12,454,475
Export credit facility | Fixed / LIBOR / FX USD |  | 7.10% (3.43% on 12.31.21) |  | 0.5 |  | 311,385 |  | - |  | (170,051) |  | (7,119) |  | 5,225 |  | (4,195) |  | 135,245
Advances for foreign exchange rate contracts | Fixed / FX USD |  | - |  | - |  | 3,103 |  | - |  | (2,766) |  | - |  | (53) |  | (284) |  | -
Working capital | Fixed / FX TRY and USD |  | 19.34% (13.35% on 12.31.21) |  | 1.0 |  | 485,052 |  | 367,292 |  | (237,586) |  | (58,198) |  | 53,101 |  | (152,028) |  | 457,633
|  |  |  |  |  |  | 16,343,552 |  | 367,292 |  | (2,605,861) |  | (784,822) |  | 598,429 |  | (871,237) |  | 13,047,353
|  |  |  |  |  |  | 25,456,030 |  | 2,724,353 |  | (3,142,578) |  | (1,285,982) |  | 1,234,924 |  | (941,021) |  | 24,045,726
Current |  |  |  |  |  |  | 3,203,068 |  |  |  |  |  |  |  |  |  |  |  | 3,159,148
Non-current |  |  |  |  |  |  | 22,252,962 |  |  |  |  |  |  |  |  |  |  |  | 20,886,578

| (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) | On September 30, 2022, includes the amount of R$2,070,568 (R$2,160,061 on December 31, 2021) referring to an Export Credit Facility issued in Reais simultaneously and in connection with a foreign exchange rate swap, resulting essentially in a net cash flow in U.S. Dollars. As the transactions are inseparable, both are recorded together under Loans and Borrowings by their amortized cost.

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

On September 30, 2022 and on December 31, 2021 the Company did not have any financial covenant clauses related to its loans and borrowings agreements.

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

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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 September 30, 2022, the credit facilities were available, but unused.

15.2. Guarantees

| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Total loans and borrowings | 20,905,081 |  | 22,111,180 |  | 24,045,726 |  | 25,456,030
Mortgage guarantees | 29,681 |  | 3,601 |  | 29,681 |  | 20,343
Related to FINAME | - |  | - |  | - |  | 16,742
Related to tax incentives and other | 29,681 |  | 3,601 |  | 29,681 |  | 3,601

On September 30, 2022, the amount of bank guarantees contracted by the Company was of R$282,516 (R$478,468 as of December 31, 2021) which were offered mainly in litigations involving the Company’s use of tax credits. These guarantees have an average cost of 1.93% p.a. (1.93% p.a. as of December 31, 2021).

15.3. | Debentures offering

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

15.4. | Repurchase of senior notes

In the third quarter of 2022, the Company repurchased the following issues of senior notes: 4.875% Senior Notes due in 2030 and 5.75% Senior Notes due in 2050. The result of the repurchases is set forth below:

Instrument |  | Currency |  | Maturity |  | Notional repurchased |  | Outstanding notional (1)
|  |  | (loan currency) |  | (Reais) (2) |  | (loan currency) |  | (Reais) (3)
BRF S.A. - BRFSBZ 4 7/8 |  | USD |  | 2030 |  | 102,291 |  | 537,837 |  | 588,307 |  | 3,180,741
BRF S.A. - BRFSBZ 5 3/4 |  | USD |  | 2050 |  | 86,920 |  | 456,158 |  | 713,080 |  | 3,855,338

| (1) | Outstanding notional after the tender offer.

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

| (3) | Represented by the amount in the original loan currency, translated by the foreign exchange rate at the settlement date 09.30.22.

The Company paid the amount equivalent to R$791,555 for the repurchase of these liabilities, which includes notional, interest, premium and taxes. The repurchases resulted in financial income in the amount of R$213,590 referring to the discount on the repurchase, and financial expenses in the amount of R$9,932 related to financial taxes and R$17,651 with the write-off of the costs of issuance.

| 16. | TRADE ACCOUNTS PAYABLE

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| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Trade accounts payable |  |  |  |  |  |  |
Domestic market |  |  |  |  |  |  |
Third parties | 10,393,734 |  | 9,687,524 |  | 10,569,584 |  | 9,812,778
Related parties | 5,303 |  | 26,106 |  | - |  | -
Foreign market |  |  |  |  |  |  |
Third parties | 1,286,879 |  | 850,441 |  | 2,622,532 |  | 2,019,824
Related parties | 1,987 |  | - |  | - |  | -
| 11,687,903 |  | 10,564,071 |  | 13,192,116 |  | 11,832,602
(-) Adjustment to present value | (190,995) |  | (114,599) |  | (192,966) |  | (117,978)
| 11,496,908 |  | 10,449,472 |  | 12,999,150 |  | 11,714,624
Current | 11,486,268 |  | 10,440,754 |  | 12,988,510 |  | 11,701,996
Non-current | 10,640 |  | 8,718 |  | 10,640 |  | 12,628

Within the trade accounts payable balance as of September 30, 2022, R$4,219,428 in the parent company and R$4,413,453 in the consolidated (R$3,754,104 in the parent company and R$3,905,827 in the consolidated as of December 31, 2021) 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
|  | 09.30.22 |  | 12.31.21
Supply chain finance |  |  |  |
Domestic market |  | 1,230,677 |  | 1,971,441
Foreign market |  | 139,825 |  | 293,732
|  | 1,370,502 |  | 2,265,173
(-) Adjustment to present value |  | (30,682) |  | (27,198)
|  | 1,339,820 |  | 2,237,975

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 September 30, 2022, 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 1.14% and 1.33% p.m. (0.67% to 1.02% p.m. on December 31, 2021).

On September 30, 2022, 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 0.37% and 0.72% p.m. (0.19% to 0.39% p.m. on December 31, 2021).

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| 18. | LEASES

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

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

18.1. | Right-of-use assets

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

| Parent company
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | 09.30.22
Cost |  |  |  |  |  |  |  |  |
Land |  |  | 47,514 |  | 178 |  | (322) |  | 47,370
Buildings |  |  | 2,912,644 |  | 624,278 |  | (20,632) |  | 3,516,290
Machinery and equipment |  |  | 111,979 |  | 4,114 |  | (74,172) |  | 41,921
Vehicles |  |  | 196,249 |  | 14,792 |  | (2,401) |  | 208,640
Software |  |  | 79,732 |  | - |  | (67,428) |  | 12,304
|  |  | 3,348,118 |  | 643,362 |  | (164,955) |  | 3,826,525
Depreciation |  |  |  |  |  |  |  |  |
Land | 15.66% |  | (19,958) |  | (5,121) |  | 234 |  | (24,845)
Buildings | 24.40% |  | (1,183,829) |  | (310,473) |  | 16,913 |  | (1,477,389)
Machinery and equipment | 31.64% |  | (72,335) |  | (22,973) |  | 74,073 |  | (21,235)
Vehicles | 30.33% |  | (106,405) |  | (43,273) |  | 1,622 |  | (148,056)
Software | 61.25% |  | (61,193) |  | (3,542) |  | 54,377 |  | (10,358)
|  |  | (1,443,720) |  | (385,382) |  | 147,219 |  | (1,681,883)
|  |  | 1,904,398 |  | 257,980 |  | (17,736) |  | 2,144,642

| (1) | Weighted average annual rate.

| Consolidated
| Average rate (1) |  | 12.31.21 |  | Additions |  | Disposals |  | Restatement by Hyperinflation |  | Exchange rate variation |  | 09.30.22
Cost |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | 145,394 |  | 178 |  | (638) |  | 3,169 |  | (4,009) |  | 144,094
Buildings |  |  | 3,223,625 |  | 735,305 |  | (31,391) |  | 16,937 |  | (9,555) |  | 3,934,921
Machinery and equipment |  |  | 117,412 |  | 4,113 |  | (74,193) |  | 734 |  | (304) |  | 47,762
Vehicles |  |  | 369,979 |  | 209,385 |  | (2,401) |  | 5,529 |  | (1,956) |  | 580,536
Software |  |  | 79,731 |  | - |  | (67,428) |  | - |  | - |  | 12,303
|  |  | 3,936,141 |  | 948,981 |  | (176,051) |  | 26,369 |  | (15,824) |  | 4,719,616
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |
Land | 8.77% |  | (36,439) |  | (9,306) |  | 551 |  | 1,058 |  | 473 |  | (43,663)
Buildings | 17.28% |  | (1,383,968) |  | (376,432) |  | 27,605 |  | (8,406) |  | 5,516 |  | (1,735,685)
Machinery and equipment | 25.58% |  | (73,385) |  | (24,129) |  | 74,091 |  | (484) |  | (645) |  | (24,552)
Vehicles | 23.50% |  | (189,817) |  | (111,841) |  | 1,622 |  | (5,281) |  | 228 |  | (305,089)
Software | 61.49% |  | (61,193) |  | (3,542) |  | 54,377 |  | - |  | - |  | (10,358)
|  |  | (1,744,802) |  | (525,250) |  | 158,246 |  | (13,113) |  | 5,572 |  | (2,119,347)
|  |  | 2,191,339 |  | 423,731 |  | (17,805) |  | 13,256 |  | (10,252) |  | 2,600,269

| (1) | Weighted average annual rate.

18.2. | Lease liabilities

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| Parent company
| WAM (1) |  | 12.31.21 |  | Additions |  | Payments |  | Interest paid |  | Interest accrued |  | Disposals |  | 09.30.22
Land | 6.0 |  | 32,693 |  | 178 |  | (4,033) |  | (2,771) |  | 2,771 |  | (166) |  | 28,672
Buildings | 7.2 |  | 1,977,283 |  | 632,376 |  | (269,515) |  | (69,866) |  | 133,146 |  | (13,006) |  | 2,390,418
Machinery and equipment | 4.1 |  | 40,220 |  | 4,114 |  | (22,686) |  | (1,880) |  | 1,880 |  | (10) |  | 21,638
Vehicles | 5.7 |  | 98,460 |  | 14,792 |  | (45,582) |  | (5,114) |  | 5,114 |  | (827) |  | 66,843
Software | 1.1 |  | 19,667 |  | - |  | (3,636) |  | (219) |  | 219 |  | (13,962) |  | 2,069
|  |  | 2,168,323 |  | 651,460 |  | (345,452) |  | (79,850) |  | 143,130 |  | (27,971) |  | 2,509,640
Current |  |  | 364,470 |  |  |  |  |  |  |  |  |  |  |  | 455,073
Non-current |  |  | 1,803,853 |  |  |  |  |  |  |  |  |  |  |  | 2,054,567

| (1) | Weighted average maturity in years.

| Consolidated
| WAM (1) |  | 12.31.21 |  | Additions |  | Payments |  | Interest paid |  | Interest accrued |  | Disposals |  | Exchange rate variation |  | 09.30.22
Land | 10.4 |  | 126,293 |  | 178 |  | (5,456) |  | (7,287) |  | 7,287 |  | (164) |  | (3,577) |  | 117,274
Buildings | 1.9 |  | 2,095,375 |  | 743,403 |  | (335,385) |  | (76,076) |  | 139,406 |  | (13,007) |  | (3,226) |  | 2,550,490
Machinery and equipment | 1.7 |  | 45,218 |  | 4,113 |  | (23,793) |  | (2,141) |  | 2,141 |  | (10) |  | (915) |  | 24,613
Vehicles | 2.0 |  | 192,694 |  | 209,385 |  | (111,415) |  | (11,736) |  | 11,736 |  | (826) |  | (1,697) |  | 288,141
Software | 1.1 |  | 19,666 |  | - |  | (3,636) |  | (219) |  | 220 |  | (13,962) |  | - |  | 2,069
|  |  | 2,479,246 |  | 957,079 |  | (479,685) |  | (97,459) |  | 160,790 |  | (27,969) |  | (9,415) |  | 2,982,587
Current |  |  | 471,956 |  |  |  |  |  |  |  |  |  |  |  |  |  | 629,332
Non-current |  |  | 2,007,290 |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,353,255

| (1) | Weighted average maturity in years.

18.3. | Lease liabilities maturity schedule

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

| Parent company |  | Consolidated
| 09.30.22 |  | 09.30.22
Current | 455,073 |  | 629,332
Non-current | 2,054,567 |  | 2,353,255
October to december 2023 | 125,423 |  | 167,768
2024 | 461,146 |  | 574,254
2025 | 349,880 |  | 411,174
2026 | 265,815 |  | 287,169
2027 onwards | 852,303 |  | 912,890
| 2,509,640 |  | 2,982,587

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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:

|  | 09.30.22 |  | 12.31.21
Contract Terms |  | Nominal rate % p.a. |  | Real rate % p.a. |  | Nominal rate % p.a. |  | Real rate % p.a.
1 year |  | - |  | - |  | 5.34% |  | 0.86%
2 years |  | 14.36% |  | 7.09% |  | 5.24% |  | 1.02%
3 years |  | 13.07% |  | 6.19% |  | 6.83% |  | 2.60%
4 years |  | 12.40% |  | 6.68% |  | 8.49% |  | 4.41%
5 years |  | 16.24% |  | 8.21% |  | 9.69% |  | 4.85%
6 years |  | 13.66% |  | 7.20% |  | 10.61% |  | 5.15%
7 years |  | - |  | - |  | 11.18% |  | 10.56%
12 years |  | - |  | - |  | 9.85% |  | 5.55%
15 years |  | 18.06% |  | 10.36% |  | - |  | -
16 years |  | - |  | - |  | 12.44% |  | 6.70%
17 years |  | 12.29% |  | 6.63% |  | 13.12% |  | 6.77%
18 years |  | 14.74% |  | 8.05% |  | 13.01% |  | 6.70%
20 years |  | - |  | - |  | 12.95% |  | 7.07%

The nominal rates presented above as of September 30, 2022 refer to the incremental borrowing rates used in contracts recognized in 2022 and the rates as of December 31, 2021 refer to the rates used in contracts recognized during the year ended December 31, 2021.

18.5. | Amounts recognized in the statement of income

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

Parent Company | Consolidated
|  | 2022 |  | 2022
|  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Variable payments not included in the lease liabilities |  | 17,777 |  | 47,323 |  | 56,653 |  | 164,381
Expenses related to short-term leases |  | 14,466 |  | 42,093 |  | 33,090 |  | 98,910
Expenses related to low-value assets |  | 2,948 |  | 7,242 |  | 2,959 |  | 7,290
|  | 35,191 |  | 96,658 |  | 92,702 |  | 270,581

18.6. | Sale-and-leaseback transactions

During the nine-month period ended September 30, 2022, the conditions for ownership transference of a feed factory in Francisco Beltrão, previously owned by the Company, were concluded. The transaction was classified as a sale-and-leaseback. The right-of use asset and lease liability was recognized and are presented in the additions of the Buildings class, with the following amounts: right-of-use asset of R$2,945 and lease liability of R$11,042. A gain was recognized under Other Operating Income in the amount of R$5,521.

| 19. | SHARE-BASED PAYMENT

The rules for the restricted shares plans granted to executives were disclosed in the financial statements for the year ended December 31, 2021 (note 19).

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

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Date |  | Quantity |  | Grant (1)
Grant |  | Vesting date |  | Shares granted |  | Outstanding shares |  | Fair value of the shares
06.01.20 |  | 06.01.23 |  | 3,571,736 |  | 666,295 |  | 21.28
07.01.21 |  | 07.01.24 |  | 2,883,737 |  | 1,222,621 |  | 28.58
07.01.22 |  | 07.01.25 |  | 4,703,472 |  | 4,657,772 |  | 14.11
|  |  |  | 11,158,945 |  | 6,546,688 |  |

| (1) | Amounts expressed in Brazilian Reais.

The rollforward of the granted options and shares for the nine-month period ended on September 30, 2022, is presented as follows:

|  | Consolidated
Outstanding options/stocks as of December 31, 2021 |  | 5,395,519
Granted |  |
Restricted stocks - July 2022 |  | 4,703,472
Exercised / Delivered: |  |
Restricted stocks – grant of June, 2021 |  | (189,285)
Restricted stocks – grant of June, 2020 |  | (317,386)
Restricted stocks – grant of July, 2019 |  | (83,175)
Restricted stocks – grant of June, 2019 |  | (107,309)
Forfeiture (1) : |  |
Restricted stocks – grant of July, 2022 |  | (45,697)
Restricted stocks – grant of July, 2021 |  | (1,270,063)
Restricted stocks – grant of June, 2020 |  | (1,197,176)
Restricted stocks – grant of September, 2019 |  | (22,867)
Restricted stocks - grant of July, 2019 |  | (237,142)
Restricted stocks – grant of June, 2019 |  | (82,203)
Outstanding options/stocks as of September 30, 2022 |  | 6,546,688

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

The Company has registered under shareholders’ equity, the fair value of share-based compensation plans in the amount of R$195,151 (R$205,949 as of December 31, 2021) and in the amount of R$20,885 under non-current liabilities (R$11,816 as of December 31, 2021). In the statement of income for the nine-month period ended on September 30, 2022 the amount recognized as expense was R$25,785 in the parent company and R$35,502 in the consolidated (R$31,392 in the parent company and R$40,074 in the consolidated in the same period of the previous year and) and for the three-month period ended on September 30, 2022 the amount recognized as expense was R$769 in the parent company and reversal of expenses R$4,506 in the consolidated (R$12,014 in the parent company and R$12,749 in the consolidated in the same period of the previous year and).

| 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, 2021 (note 20) and have not been changed during the following periods. The actuarial liabilities are presented below:

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| Parent company |  | Consolidated
| Liabilities |  | Liabilities
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Medical assistance | 206,015 |  | 193,545 |  | 206,015 |  | 195,345
F.G.T.S. Penalty (1) | 56,934 |  | 53,881 |  | 56,934 |  | 53,881
Award for length of service | 104,472 |  | 98,474 |  | 104,472 |  | 98,474
Other | 60,839 |  | 57,553 |  | 207,007 |  | 204,885
| 428,260 |  | 403,453 |  | 574,428 |  | 552,585
Current | 42,097 |  | 42,097 |  | 53,324 |  | 54,354
Non-current | 386,163 |  | 361,356 |  | 521,104 |  | 498,231

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

The Company estimated costs for pension and post-employment plans for the year of 2022, according to an appraisal report prepared in 2021 by an actuarial expert and recorded in the statement of income for the nine-month period ended on September 30, 2022 against other comprehensive income a gain of R$18,211 in the parent company and R$23,654 in consolidated, net of taxes (R$11,852 in the parent company and R$11,729 in consolidated in the same period of the previous year) and for the three-month period ended on September 30, 2022 a gain of R$3,615 in the parent company and R$3,422 in consolidated (R$3,753 in the parent company and R$3,694 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 these 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.

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

| Parent company
|  |  |  |  |  |  |  |  | 09.30.22
| Tax | Labor | Civil, environmental and other | Contingent liabilities (1) | Total
Beginning balance | 397,067 |  | 624,258 |  | 354,531 |  | 97,859 |  | 1,473,715
Additions | 74,765 |  | 282,953 |  | 48,580 |  | - |  | 406,298
Reversals | (19,235) |  | (194,811) |  | (36,916) |  | (503) |  | (251,465)
Payments | (59,015) |  | (221,090) |  | (30,193) |  | - |  | (310,298)
Interest | 32,615 |  | 101,595 |  | 47,035 |  | - |  | 181,245
Ending balance | 426,197 |  | 592,905 |  | 383,037 |  | 97,356 |  | 1,499,495
Current |  |  |  |  |  |  |  |  | 920,663
Non-current |  |  |  |  |  |  |  |  | 578,832

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

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| Consolidated
|  |  |  |  |  |  |  |  | 09.30.22
| Tax | Labor | Civil, environmental and other | Contingent liabilities (1) | Total
Beginning balance | 400,101 |  | 628,767 |  | 357,013 |  | 131,751 |  | 1,517,632
Additions | 74,975 |  | 285,094 |  | 48,744 |  | - |  | 408,813
Reversals | (19,235) |  | (195,147) |  | (36,944) |  | (504) |  | (251,830)
Payments | (59,015) |  | (221,090) |  | (30,193) |  | - |  | (310,298)
Interest | 32,807 |  | 101,679 |  | 47,198 |  | - |  | 181,684
Exchange rate variation | 29 |  | (930) |  | (21) |  | - |  | (922)
Ending balance | 429,662 |  | 598,373 |  | 385,797 |  | 131,247 |  | 1,545,079
Current |  |  |  |  |  |  |  |  | 924,178
Non-current |  |  |  |  |  |  |  |  | 620,901

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

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 on December 31, 2021 financial statements and on September 30, 2022, had balances of, R$2,033,391 (R$1,679,407 as of December 31, 2021) for civil risks, R$ 274,261 (R$338,999 as of December 31, 2021) for labor risks and R$13,294,318 (R$12,499,764 as of December 31, 2021) for tax risks, of which solely the ones arising from the business combination with Sadia, Hercosul and Mogiana are provisioned, measured by the estimated fair value at the business combination date: R$131,247 (R$131,751 as of December 31, 2021).

| 22. | EQUITY

| 22.1. | Capital stock

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

The pricing of the public offering of shares was on February 1, 2022 and the Board of Directors approved the offering of 270,000,000 shares at the price of R$20.00 (twenty Brazilian Reais), in a total amount of R$5,400,000. From this amount, R$500,000 were allocated to the capital stock and the remaining was allocated to the formation of a capital reserve. The settlement of the offering was on February 4, 2022 and incurred expenses of R$123,949.

On September 30, 2022, the subscribed and paid capital of the Company was R$13,053,418, which is composed of 1,082,473,246 common book-entry shares with no par value. The value of the capital stock is net of the public offering expenses of R$216,896, made on July 22, 2009 and February 4, 2022.

| 22.1.1. | Breakdown of capital stock by nature

Parent company
| 09.30.22 |  | 12.31.21
Common shares | 1,082,473,246 |  | 812,473,246
Treasury shares | (4,356,397) |  | (5,053,554)
Outstanding shares | 1,078,116,849 |  | 807,419,692

| 22.1.2. | Rollforward of outstanding shares

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Parent company
Quantity of outstanding of shares
|  | 09.30.22
Shares at the beginning of the period |  | 807,419,692
Issue of shares on 02.01.22 |  | 270,000,000
Delivery of restricted shares |  | 697,157
Shares at the end of the period |  | 1,078,116,849

| 22.2. | Capital reserves and Other equity transactions

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

Parent company and Consolidated
|  | 09.30.22 |  | 12.31.21
Capital reserves |  | 2,338,476 |  | 141,834
Other equity transactions |  | (78,329) |  | (67,531)
Share-based payments |  | 195,151 |  | 205,949
Acquisition of non-controlling interest |  | (273,260) |  | (273,260)
Capital transactions with controlled entities |  | (220) |  | (220)
|  | 2,260,147 |  | 74,303

| 22.3. | Absorption of accumulated losses

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

| 22.4. | Treasury shares

The Company has 4,356,397 shares held in treasury, with an average cost of R$25.19 (twenty-five Brazilian Reais and nineteen cents) per share and corresponding market value of R$56,110.

Parent company
Quantity of outstanding of shares
|  | 09.30.22
Shares at the beggining of the period |  | 5,053,554
Delivery of restricted shares |  | (697,157)
Shares at the end of the period |  | 4,356,397

The Company has share buyback program, approved on September 30, 2021 up to the limit of 3,696,858 common shares, with an 18-month term. Up to September 30, 2022, the Company repurchased 1.232.300 common shares at the cost of R$27,721 under the Restricted Shares Plan.

| 23. | EARNINGS (LOSS) PER SHARE

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| Continued operations
|  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Basic numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014)
Basic denominator |  |  |  |  |  |  |
Common shares | 1,082,473,246 |  | 1,082,473,246 |  | 812,473,246 |  | 812,473,246
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share basic - R$ | (0.11) |  | (2.11) |  | (0.34) |  | (0.56)
Diluted numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (122,570) |  | (2,203,229) |  | (275,600) |  | (454,014)
Diluted denominator |  |  |  |  |  |  |
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Number of potential shares | - |  | - |  | - |  | -
Weighted average number of outstanding shares - diluted | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share diluted - R$ | (0.11) |  | (2.11) |  | (0.34) |  | (0.56)

| Discontinued operations
|  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Basic numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | - |  | (50,948) |  | (6,516) |  | (47,802)
Basic denominator |  |  |  |  |  |  |
Common shares | 1,082,473,246 |  | 1,082,473,246 |  | 812,473,246 |  | 812,473,246
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share basic - R$ | - |  | (0.05) |  | (0.01) |  | (0.06)
Diluted numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | - |  | (50,948) |  | (6,516) |  | (47,802)
Diluted denominator |  |  |  |  |  |  |
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Number of potential shares | - |  | - |  | - |  | -
Weighted average number of outstanding shares - diluted | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share diluted - R$ | - |  | (0.05) |  | (0.01) |  | (0.06)

| Continued and discontinued operations
|  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Basic numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (122,570) |  | (2,254,177) |  | (282,116) |  | (501,816)
Basic denominator |  |  |  |  |  |  |
Common shares | 1,082,473,246 |  | 1,082,473,246 |  | 812,473,246 |  | 812,473,246
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share basic - R$ | (0.11) |  | (2.16) |  | (0.35) |  | (0.62)
Diluted numerator |  |  |  |  |  |  |
Net earnings (loss) for the period attributable to controlling shareholders | (122,570) |  | (2,254,177) |  | (282,116) |  | (501,816)
Diluted denominator |  |  |  |  |  |  |
Weighted average number of outstanding shares - basic (except treasury shares) | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Number of potential shares | - |  | - |  | - |  | -
Weighted average number of outstanding shares - diluted | 1,078,022,206 |  | 1,043,977,330 |  | 807,709,278 |  | 808,013,781
Net earnings (loss) per share diluted - R$ | (0.11) |  | (2.16) |  | (0.35) |  | (0.62)

| 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

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documents subject to such policy, executing the formal designation of its hedge accounting relations. The Risk Policy was approved by the Board of Directors on December 16, 2021, is valid for one year and is available at the Company’s website. The Company’s risk management strategies, objectives and governance are disclosed in the financial statements for the year ended on December 31, 2021.

| 24.2. | Credit risk management

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

On September 30, 2022, the Company held financial investments over R$100,000 at the following financial institutions: Banco Bradesco, Banco do Brasil, Banco BNP Paribas, Banco Itaú, Banco Safra, Banco Santander, Banco Votorantim, Banco XP, Caixa Econômica Federal, HSBC, Banco Inter, J.P. Morgan Chase Bank and Standard Bank.

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

| 24.3. | Capital management and liquidity risk

On September 30, 2022, the non-current consolidated gross debt, as presented below, represented 86.94% (86.78% as of December 31, 2021) of the total gross debt, which has an average term of eight years.

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

| Consolidated
| 09.30.22 |  | 12.31.21
| Current |  | Non-current |  | Total |  | Total
Foreign currency loans and borrowings | (1,842,360) |  | (11,204,993) |  | (13,047,353) |  | (16,343,552)
Local currency loans and borrowings | (1,316,788) |  | (9,681,585) |  | (10,998,373) |  | (9,112,478)
Derivative financial instruments, net | 9,424 |  | (79,230) |  | (69,806) |  | (223,949)
Gross debt | (3,149,724) |  | (20,965,808) |  | (24,115,532) |  | (25,679,979)
Cash and cash equivalents | 8,335,724 |  | - |  | 8,335,724 |  | 7,528,820
Marketable securities | 418,891 |  | 444,188 |  | 863,079 |  | 794,268
Restricted cash | - |  | 86,971 |  | 86,971 |  | 24,964
| 8,754,615 |  | 531,159 |  | 9,285,774 |  | 8,348,052
Net debt | 5,604,891 |  | (20,434,649) |  | (14,829,758) |  | (17,331,927)

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

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| Parent company
| 09.30.22
| Book value |  | Contractual cash flow |  | Up to 12 months |  | Oct - Dec 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 onwards
Non derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and borrowings | 20,905,081 |  | 32,461,910 |  | 3,763,929 |  | 1,593,283 |  | 2,569,491 |  | 2,130,026 |  | 1,589,223 |  | 20,815,958
Principal |  |  | 21,182,472 |  | 2,519,141 |  | 966,095 |  | 1,928,719 |  | 1,188,209 |  | 718,209 |  | 13,862,099
Interest |  |  | 11,279,438 |  | 1,244,788 |  | 627,188 |  | 640,772 |  | 941,817 |  | 871,014 |  | 6,953,859
Trade accounts payable | 11,496,908 |  | 11,687,903 |  | 11,677,282 |  | 3,178 |  | 4,259 |  | 1,645 |  | 1,539 |  | -
Supply chain finance | 1,339,820 |  | 1,370,502 |  | 1,370,502 |  | - |  | - |  | - |  | - |  | -
Lease liabilities | 2,509,640 |  | 3,151,507 |  | 486,246 |  | 136,271 |  | 535,353 |  | 434,006 |  | 352,378 |  | 1,207,253
Derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 57,864 |  | 57,864 |  | - |  | - |  | - |  | - |  | 2,826 |  | 55,038
Currency derivatives | 53,224 |  | 53,224 |  | 53,059 |  | 165 |  | - |  | - |  | - |  | -
Commodities derivatives | 25,898 |  | 34,431 |  | 34,431 |  | - |  | - |  | - |  | - |  | -
Financial instruments not designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 28,169 |  | 28,169 |  | - |  | - |  | 28,169 |  | - |  | - |  | -

| Consolidated
| 09.30.22
| Book value |  | Contractual cash flow |  | Up to 12 months |  | Oct - Dec 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 onwards
Non derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and borrowings | 24,045,726 |  | 36,139,951 |  | 4,326,351 |  | 1,602,785 |  | 2,704,626 |  | 2,263,426 |  | 4,420,322 |  | 20,822,441
Principal |  |  | 24,338,376 |  | 2,927,191 |  | 972,150 |  | 1,940,828 |  | 1,200,318 |  | 3,429,736 |  | 13,868,153
Interest |  |  | 11,801,575 |  | 1,399,160 |  | 630,635 |  | 763,798 |  | 1,063,108 |  | 990,586 |  | 6,954,288
Trade accounts payable | 12,999,150 |  | 13,192,116 |  | 13,181,495 |  | 3,178 |  | 4,259 |  | 1,645 |  | 1,539 |  | -
Supply chain finance | 1,339,820 |  | 1,370,502 |  | 1,370,502 |  | - |  | - |  | - |  | - |  | -
Lease liabilities | 2,982,587 |  | 3,705,177 |  | 672,441 |  | 182,279 |  | 666,662 |  | 510,037 |  | 380,686 |  | 1,293,072
Derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 57,864 |  | 57,864 |  | - |  | - |  | - |  | - |  | 2,826 |  | 55,038
Currency derivatives | 53,224 |  | 53,224 |  | 53,059 |  | 165 |  | - |  | - |  | - |  | -
Commodities derivatives | 25,898 |  | 25,898 |  | 25,898 |  | - |  | - |  | - |  | - |  | -
Financial instruments not designated as cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | 28,169 |  | 28,169 |  | - |  | - |  | 28,169 |  | - |  | - |  | -
Currency derivatives | 558 |  | 558 |  | 558 |  | - |  | - |  | - |  | - |  | -

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

24.4. Market risk management

| 24.4.1. | Interest rate risk

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

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Consolidated
|  |  |  |  |  |  | 09.30.22
| Notional |  |
Index | Assets |  | Liabilities |  | Derivative financial instruments |  | Exposure, Net
Fixed |  |  |  |  |  |  |
Fixed Reais | 150,665 |  | (424,398) |  | 636,462 |  | 362,729
Fixed U.S. Dollars (USD) | 5,225,686 |  | (14,202,535) |  | 1,816,508 |  | (7,160,341)
Fixed Turkish Liras (TRY) | 22,521 |  | (455,391) |  | (124,352) |  | (557,222)
Fixed Euros (EUR) | 100,783 |  | - |  | 423,232 |  | 524,015
Fixed Kwanza (AOA) | 408,727 |  | - |  | - |  | 408,727
Fixed Other | 50,796 |  | - |  | - |  | 50,796
Floating |  |  |  |  |  |  |
Floating IPCA Reais | - |  | (5,567,827) |  | 4,590,000 |  | (977,827)
Floating CDI Reais | 3,326,596 |  | (2,555,558) |  | (7,341,850) |  | (6,570,812)
Floating Libor U.S. Dollars (USD) | - |  | (135,165) |  | - |  | (135,165)
| 9,285,774 |  | (23,340,874) |  | - |  | (14,055,100)
Interest and fair value adjustment of derivatives | - |  | (704,852) |  | (69,806) |  | (774,658)
Total | 9,285,774 |  | (24,045,726) |  | (69,806) |  | (14,829,758)

The derivative financial instruments used to hedge the exposure to interest rates as of September 30, 2022 are presented in the table below:

09.30.22
|  |  |  |  |  |  |  |  |  |  |  |  | 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 - 1st Issue - 3rd series - IPCA + 5.50% p.a. |  | 2nd Qtr. 2026 |  | IPCA + 5.50% p.a. |  | CDI + 0.29% p.a. |  | 400,000 | BRL | (2,385) |  | 7,444
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 | 5,918 |  | 70,752
Interest rate swap |  | Debenture - 2nd Issue - 2nd series - IPCA + 5.60% p.a. |  | 3rd Qtr. 2030 |  | IPCA + 5.60% p.a. |  | CDI + 2.29% p.a. |  | 1,495,000 | BRL | (29,208) |  | 178,161
Interest rate swap |  | Debenture - 3rd Issue - single series - IPCA + 4.78% p.a. |  | 2nd Qtr. 2031 |  | IPCA + 4.78% p.a. |  | CDI + 0.12% p.a. |  | 1,000,000 | BRL | (19,503) |  | 58,570
Interest rate swap |  | Debenture - 1st Issue - 1st series - IPCA + 6.83% p.a. |  | 3rd Qtr. 2032 |  | IPCA + 6.83% p.a. |  | 109.32% CDI |  | 990,000 | BRL | (5,782) |  | (18,641)
|  |  |  |  |  |  |  |  |  | 4,590,000 |  |  | (50,960) |  | 296,286

| (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

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:

|  | Consolidated
|  | 09.30.22 |  | 12.31.21
Cash and cash equivalents |  | 4,662,094 |  | 2,064,631
Trade accounts receivable |  | 7,344,064 |  | 6,377,104
Trade accounts payable |  | (1,533,809) |  | (1,221,354)
Loans and borrowings |  | (13,521,827) |  | (16,726,412)
Other assets and liabilities, net |  | 316,811 |  | 49,732
Exposure of assets and liabilities in foreign currencies |  | (2,732,667) |  | (9,456,299)
Derivative financial instruments (hedge) |  | 2,225,771 |  | 8,454,971
Exposure in result, net |  | (506,896) |  | (1,001,328)

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

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 65

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Net P&L Exposure |  | 09.30.22 |  | 12.31.21
Argentinian Peso (ARS) |  | (4,380) |  | (5,783)
Angolan kwanza (AOA) |  | 397,597 |  | 318,660
Euros (EUR) |  | 20,825 |  | 33,381
Chilean Pesos (CLP) |  | 274,298 |  | 169,301
Yen (JPY) |  | (1,538) |  | 77,178
Turkish Liras (TRY) |  | 180,577 |  | 266,541
U.S. Dollars (USD) |  | (1,374,275) |  | (1,860,606)
Total |  | (506,896) |  | (1,001,328)

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

The Company holds more financial liabilities in foreign currencies than assets and, therefore, holds derivative financial instruments to reduce such exposure. The derivative financial instruments acquired to hedge the foreign currency statement of financial position exposure on September 30, 2022 and are set forth below:

09.30.22
Derivative instruments not designated |  | Asset |  | Liability |  | Maturity |  | Notional |  | Exercise rate |  | Fair value (R$)
Parent company |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | EUR |  | BRL |  | 4th Qtr. 2022 |  | EUR | 80,000 |  | 5.3208 |  | 5,667
Futures - B3 |  | BRL |  | USD |  | 4th Qtr. 2022 |  | USD | (196,000) |  | 5.2636 |  | 8,004
|  |  |  |  |  |  |  |  |  |  |  |  | 13,671
Subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | USD |  | TRY |  | 4th Qtr. 2022 |  | USD | 23,000 |  | 18.6217 |  | (558)
Total Consolidated |  |  |  |  |  |  |  |  |  |  |  |  | 13,113

09.30.22
|  |  |  |  |  |  |  |  |  |  |  |  | Fair value (R$)
Fair value hedge - Derivative instruments |  | Hedged Object |  | Maturity |  | Asset |  | Liability |  | Notional |  | Instrument |  | Object (1)
Parent company and Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FX and interest rate swap |  | BRF SA BRFSBZ 3.95 |  | 2nd Qtr. 2023 |  | FX + 3,95% p.a. |  | 98.77% CDI |  | 234,033 | USD | 16,761 |  | 28,150
FX and interest rate swap |  | BRF SA BRFSBZ 4 3/4 |  | 3rd Qtr. 2024 |  | FX + 4,75% p.a. |  | 104.48% CDI |  | 295,363 | USD | (28,169) |  | 36,471
|  |  |  |  |  |  |  |  |  | 529,396 |  |  | (11,408) |  | 64,621

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

| ii. | Operating income exposure

The Company has more sales in foreign currency than expenditures and, therefore, holds derivative financial instruments to reduce such exposure. The derivative financial instruments designated as cash flow hedges for foreing exchange operating income exposure on September 30, 2022 are set forth below:

09.30.22
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 |  | 4th Qtr. 2022 |  | USD | 361,500 |  | 5.3454 |  | (24,630)
Non-deliverable forward |  | USD Exports |  | BRL |  | USD |  | 1st Qtr. 2023 |  | USD | 34,000 |  | 5.4062 |  | (2,842)
Collar |  | USD Exports |  | BRL |  | USD |  | 4th Qtr. 2022 |  | USD | 9,000 |  | 5.1986 |  | (503)
Collar |  | USD Exports |  | BRL |  | USD |  | 1st Qtr. 2023 |  | USD | 15,000 |  | 5.6701 |  | 924
Collar |  | USD Exports |  | BRL |  | USD |  | 2nd Qtr. 2023 |  | USD | 20,000 |  | 5.5563 |  | (1,234)
Collar |  | USD Exports |  | BRL |  | USD |  | 3rd Qtr. 2023 |  | USD | 5,000 |  | 5.7075 |  | (112)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | (28,397)

| iii. | Investments exposure

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The Company holds both investments (net assets) and loans (financial liabilities) denominated in foreign currency. To balance the accounting effects of such exposures, some non-derivative financial liabilities are designated as hedging instruments for the investments exposure. The non-derivative financial instruments designated as net investment hedge instruments on September 30, 2022 are set forth below:

09.30.22
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 |  | (124,933)
Bond - BRF SA BRFSBZ 4.35 |  | BRF Kuwait Food Management Company WLL |  | USD |  | 3rd Qtr. 2026 |  | USD | 108,757 |  | 3.7649 |  | (156,277)
Bond - BRF SA BRFSBZ 4.35 |  | Al Khan Foodstuff LLC |  | USD |  | 3rd Qtr. 2026 |  | USD | 65,570 |  | 3.7649 |  | (107,163)
|  |  |  |  |  |  |  |  |  |  |  |  | (388,373)

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

| 24.4.3. | Commodities price risk

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

The Company performs purchases at variable prices in future and spot markets and, to hedge such exposure, it holds derivative financial instruments in long position (buy) to fix these prices in advance. The financial instruments designated as cash flow hedges for the variable commodities price exposure on September 30, 2022 are set forth below:

09.30.22
Cash flow hedge - Derivative instruments |  | Hedged object |  | Index |  | Maturity |  | Quantity |  | Exercise price (1) |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 4th Qtr. 2022 |  | 9,999 | ton |  | 409.44 |  | 1,880
Non-deliverable forward - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 1st Qtr. 2023 |  | 5,999 | ton |  | 440.32 |  | (80)
Collar - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 4th Qtr. 2022 |  | 115,004 | ton |  | 452.86 |  | 192
Collar - buy |  | Soybean meal purchase - floating price |  | Soybean meal - CBOT |  | 1st Qtr. 2023 |  | 18,000 | ton |  | 464.90 |  | (679)
Collar - buy |  | Corn purchase - floating price |  | Corn - CBOT |  | 4th Qtr. 2022 |  | 99,237 | ton |  | 264.76 |  | 1,094
Collar - buy |  | Corn purchase - floating price |  | Corn - CBOT |  | 1st Qtr. 2023 |  | 73,078 | ton |  | 254.85 |  | 4,126
Corn future - buy |  | Corn purchase - floating price |  | Corn - B3 |  | 4th Qtr. 2022 |  | 9,990 | ton |  | 1,484.43 |  | 122
Collar - buy |  | Corn purchase - floating price |  | Corn - B3 |  | 4th Qtr. 2022 |  | 33,966 | ton |  | 1,667.65 |  | (554)
Collar - buy |  | Corn purchase - floating price |  | Corn - B3 |  | 1st Qtr. 2023 |  | 62,100 | ton |  | 1,673.70 |  | 642
|  |  |  |  |  |  |  | 427,374 |  |  |  |  | 6,743

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

In certain cases, the Company performs futures purchases at fixed prices and, to hedge such exposure, it holds derivative financial instruments in short position (sell) to keep these prices at market value. The financial instruments designated as fair value hedges for the fixed commodities price exposure on September 30, 2022 are set forth below:

09.30.22
Fair value hedge - Derivative instruments |  | Hedged object |  | Index |  | Maturity |  | Quantity |  | Exercise price (1) |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward - sell |  | Soybean purchase - fixed price |  | Soybean - CBOT |  | 1st Qtr. 2023 |  | 24,599 | ton |  | 536.18 |  | 3,681
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 1st Qtr. 2023 |  | 36,093 | ton |  | 283.20 |  | 2,691
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 2nd Qtr. 2023 |  | 80,660 | ton |  | 255.31 |  | (5,040)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 3rd Qtr. 2023 |  | 100,952 | ton |  | 243.76 |  | (2,076)
Non-deliverable forward - sell |  | Corn purchase - fixed price |  | Corn - CBOT |  | 4th Qtr. 2023 |  | 3,366 | ton |  | 246.64 |  | 66
Corn future - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 1st Qtr. 2023 |  | 8,019 | ton |  | 1,551.69 |  | (81)
Corn future - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 2nd Qtr. 2023 |  | 594 | ton |  | 1,583.55 |  | (6)
Corn future - sell |  | Corn purchase - fixed price |  | Corn - B3 |  | 3rd Qtr. 2023 |  | 28,944 | ton |  | 1,359.23 |  | (437)
|  |  |  |  |  |  |  | 283,226 |  |  |  |  | (1,202)

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

09.30.22
Fair value hedge - Derivative instruments |  | Protection object |  | Assets |  | Liabilities |  | Maturity |  | Notional |  | Exercise price |  | Fair value
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 1st Qtr. 2023 |  | USD | 10,221 |  | 5.4617 |  | (693)
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 2nd Qtr. 2023 |  | USD | 18,372 |  | 5.8861 |  | 3,956
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 3rd Qtr. 2023 |  | USD | 10,695 |  | 5.6361 |  | (792)
Non-deliverable forward |  | Cost in USD |  | BRL |  | USD |  | 4th Qtr. 2023 |  | USD | 830 |  | 5.5648 |  | (166)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,305

24.5. | Effects of hedge instruments on financial information

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The effects of the financial instruments for hedging exchange rate, commodities price and interest rates in the income (loss) for the period, in other comprehensive income and in the financial position are set forth below:

Income for the period |  |  |  |  |  |  |  |  |  | Consolidated
Jul - Sep 2022 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Net Sales |  |  |  |  |  |  |  | 14,095,772 |  | - |  | - |  | 14,095,772
Derivatives result |  |  |  | Operating Results |  | Cash flow |  | (39,731) |  | - |  | - |  | (39,731)
Net Revenue |  | 26 |  |  |  |  |  | 14,056,041 |  | - |  | - |  | 14,056,041
Cost of Sales |  |  |  |  |  |  |  | - |  | (11,460,536) |  | - |  | (11,460,536)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | 2,453 |  | - |  | 2,453
Cost of Sales |  |  |  |  |  |  |  | - |  | (11,458,083) |  | - |  | (11,458,083)
Interests on loans and borrowings |  |  |  |  |  |  |  | - |  | - |  | (335,493) |  | (335,493)
Interest Rate Derivatives result |  |  |  | Interest expenses |  | Fair value |  | - |  | - |  | (138,044) |  | (138,044)
Foreign Exchange variation on assets and liabilities |  |  |  |  |  |  |  | (137,469) |  | - |  | - |  | (137,469)
Foreign Exchange Derivatives result |  |  |  | Financial Position |  | Not designated |  | 87,495 |  | - |  | - |  | 87,495
Foreign Exchange Derivatives result |  |  |  | Loans in foreign currency |  | Fair value |  | (98,204) |  | - |  | - |  | (98,204)
Effects on Financial Result |  | 28 |  |  |  |  |  | (148,178) |  | - |  | (473,537) |  | (621,715)
Other Comprehensive Income |  |  |  |  |  |  |  |  |  | Consolidated
Jul - Sep 2022 |  |  |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Derivative Instruments - current |  |  |  | Operating Results |  | Cash flow |  | 45,636 |  | (14,797) |  | - |  | 30,839
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | (38,187) |  | - |  | - |  | (38,187)
Other Comprehensive Income (1) |  |  |  |  |  |  |  | 7,449 |  | (14,797) |  | - |  | (7,348)

(1) All effects are presented gross of taxes.

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Statement of financial position |  |  |  |  |  |  |  |  |  | Consolidated
Jan - Sep 2022 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Designated derivatives |  |  |  | Operating Results |  | Cash flow / Fair value |  | (26,092) |  | 5,541 |  | (50,960) |  | (71,511)
Not designated derivatives |  |  |  | Financial Position |  | Not designated |  | 29,874 |  | - |  | (28,169) |  | 1,705
Asset / (Liability) net |  |  |  |  |  |  |  | 3,782 |  | 5,541 |  | (79,129) |  | (69,806)
Derivative Instruments - current (2) |  |  |  | Operating Results |  | Cash flow |  | (28,397) |  | 15,065 |  | - |  | (13,332)
Non-derivative instruments – current |  |  |  | Operating Results |  | Cash flow |  | (548,639) |  | - |  | - |  | (548,639)
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | (388,373) |  | - |  | - |  | (388,373)
Other Comprehensive Income (1) |  |  |  |  |  |  |  | (965,409) |  | 15,065 |  | - |  | (950,344)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | (14,576) |  | - |  | (14,576)
Inventories |  | 7 |  |  |  |  |  | - |  | (14,576) |  | - |  | (14,576)

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

| (2) | Includes R$1,447 related to the time value of the commodity options contracts.

Statement of financial position |  |  |  |  |  |  |  |  |  | Consolidated
12.31.21 |  | Note |  | Exposure |  | Hedge accounting |  | Foreign Exchange |  | Commodities |  | Interest Rate |  | Total
Designated derivatives |  |  |  | Operating Results |  | Cash flow / Fair value |  | (10,342) |  | 47,620 |  | (30,108) |  | 7,170
Not designated derivatives |  |  |  | Financial Position |  | Not designated |  | (231,119) |  | - |  | - |  | (231,119)
Asset / (Liability) net |  |  |  |  |  |  |  | (241,461) |  | 47,620 |  | (30,108) |  | (223,949)
Derivative Instruments - current |  |  |  | Operating Results |  | Cash flow |  | 3,964 |  | 103,746 |  | - |  | 107,710
Non-derivative instruments – current |  |  |  | Operating Results |  | Cash flow |  | (444,953) |  | - |  | - |  | (444,953)
Non-derivative instruments – non-current |  |  |  | Operating Results |  | Cash flow |  | (548,640) |  | - |  | - |  | (548,640)
Non-derivative Instruments - non-current |  |  |  | Foreign investments |  | Net investment |  | (441,229) |  | - |  | - |  | (441,229)
Other Comprehensive Income |  |  |  |  |  |  |  | (1,430,858) |  | 103,746 |  | - |  | (1,327,112)
Derivatives result |  |  |  | Operating Results |  | Cash flow / Fair value |  | - |  | 531,732 |  | - |  | 531,732
Inventories |  | 7 |  |  |  |  |  | - |  | 531,732 |  | - |  | 531,732

On December 16, 2021, the Financial Risk Management Policy was amended and from this date, non-derivative financial instruments may only be designated as hedge instruments in net investment hedge relations. Thus, on December 16, 2021, the cash flow hedge relations presented below were discontinued because the hedging instruments were non-derivative financial instruments (loans) and no longer met the Company’s strategies and objectives.

09.30.22
Cash flow hedge - Non-derivative instruments |  | Hedged object |  | Liability |  | Maturity |  | Notional |  | Designation rate |  | Rate (1) |  | Balance (2)
Parent company and consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bond BRF SA BRFSBZ 3.95 |  | USD Exports |  | USD |  | 2nd Qtr. 2023 |  | USD | 150,000 |  | 2.0387 |  | 5.6963 |  | (548,639)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | (548,639)

| (1) | Average discontinuance rates.

| (2) | Effective portion of the accumulated foreign exchange variations on the designated loans.

The amount above will be kept under Other Comprehensive Income until its maturity, according to the previous designation and effectiveness. During the nine-month period ended September 30, 2022, the loan Bond BRF SA BRFSBZ 5 7/8, previously designated as hedging instrument for exports, was settled and the amount of R$(444,953) previously accumulated in Other Comprehensive Income (Loss) was reclassified to the statement of income (loss) within Net Sales.

Summarized financial position of derivative financial instruments:

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| Parent company |  | Consolidated
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Assets |  |  |  |  |  |  |
Designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | 27,132 |  | 27,617 |  | 27,132 |  | 27,617
Commodities derivatives | 31,439 |  | 105,228 |  | 31,439 |  | 105,228
Interest rate derivatives | 6,904 |  | 10,457 |  | 6,904 |  | 10,457
Not designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | 30,432 |  | - |  | 30,432 |  | 2,053
| 95,907 |  | 143,302 |  | 95,907 |  | 145,355
Current assets | 88,937 |  | 132,498 |  | 88,937 |  | 134,551
Non-current assets | 6,970 |  | 10,804 |  | 6,970 |  | 10,804
Liabilities |  |  |  |  |  |  |
Designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | (53,224) |  | (36,676) |  | (53,224) |  | (37,959)
Commodities derivatives | (25,898) |  | (57,608) |  | (25,898) |  | (57,608)
Interest rate derivatives | (57,864) |  | (40,565) |  | (57,864) |  | (40,565)
Not designated as hedge accounting |  |  |  |  |  |  |
Currency derivatives | - |  | (232,442) |  | (558) |  | (233,172)
Interest rate derivatives | (28,169) |  | - |  | (28,169) |  | -
| (165,155) |  | (367,291) |  | (165,713) |  | (369,304)
Current liabilities | (78,955) |  | (325,430) |  | (79,513) |  | (327,443)
Non-current liabilities | (86,200) |  | (41,861) |  | (86,200) |  | (41,861)

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24.6. | Sensitivity analysis

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

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

The information used in the preparation of the analysis is based on the position as of September 30, 2022, which has been described in the items above. The estimated values may differ significantly to numbers and results that will be effectively registered by the Company. Positive values indicate gains and negative values indicate losses.

|  | Scenario
Exchange rate - Balance |  | Base |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.4066 |  | 2.7033 |  | 4.0550 |  | 4.8659 |  | 5.9473 |  | 6.7583 |  | 8.1099
Monetary Assets and Liabilities |  |  |  | 1,650,584 |  | 825,292 |  | 330,117 |  | (330,117) |  | (825,292) |  | (1,650,584)
Derivative Instruments - Not designated |  |  |  | (963,445) |  | (481,723) |  | (192,689) |  | 192,689 |  | 481,723 |  | 963,445
Net effect |  |  |  | 687,139 |  | 343,569 |  | 137,428 |  | (137,428) |  | (343,569) |  | (687,139)
EUR |  | 5.2904 |  | 2.6452 |  | 3.9678 |  | 4.7614 |  | 5.8194 |  | 6.6130 |  | 7.9356
Monetary Assets and Liabilities |  |  |  | 201,203 |  | 100,602 |  | 40,241 |  | (40,241) |  | (100,602) |  | (201,203)
Derivative Instruments - Not designated |  |  |  | (211,616) |  | (105,808) |  | (42,323) |  | 42,323 |  | 105,808 |  | 211,616
Net effect |  |  |  | (10,413) |  | (5,206) |  | (2,082) |  | 2,082 |  | 5,206 |  | 10,413
JPY |  | 0.0374 |  | 0.0187 |  | 0.0280 |  | 0.0336 |  | 0.0411 |  | 0.0467 |  | 0.0561
Monetary Assets and Liabilities |  |  |  | 769 |  | 384 |  | 154 |  | (154) |  | (384) |  | (769)
Net effect |  |  |  | 769 |  | 384 |  | 154 |  | (154) |  | (384) |  | (769)
TRY |  | 0.2921 |  | 0.1461 |  | 0.2191 |  | 0.2629 |  | 0.3213 |  | 0.3651 |  | 0.4382
Monetary Assets and Liabilities |  |  |  | (152,464) |  | (76,232) |  | (30,493) |  | 30,493 |  | 76,232 |  | 152,464
Derivative Instruments - Not designated |  |  |  | 62,176 |  | 31,088 |  | 12,435 |  | (12,435) |  | (31,088) |  | (62,176)
Net effect |  |  |  | (90,288) |  | (45,144) |  | (18,058) |  | 18,058 |  | 45,144 |  | 90,288
AOA |  | 0.0128 |  | 0.0064 |  | 0.0096 |  | 0.0116 |  | 0.0141 |  | 0.0161 |  | 0.0193
Monetary Assets and Liabilities |  |  |  | (198,799) |  | (99,399) |  | (39,760) |  | 39,760 |  | 99,399 |  | 198,799
Net effect |  |  |  | (198,799) |  | (99,399) |  | (39,760) |  | 39,760 |  | 99,399 |  | 198,799
CLP |  | 0.0056 |  | 0.0028 |  | 0.0042 |  | 0.0050 |  | 0.0062 |  | 0.0070 |  | 0.0084
Monetary Assets and Liabilities |  |  |  | (137,149) |  | (68,574) |  | (27,430) |  | 27,430 |  | 68,574 |  | 137,149
Net effect |  |  |  | (137,149) |  | (68,574) |  | (27,430) |  | 27,430 |  | 68,574 |  | 137,149

|  | Scenario
Exchange rate - Operating results |  | Base |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.4066 |  | 2.7033 |  | 4.0550 |  | 4.8659 |  | 5.9473 |  | 6.7583 |  | 8.1099
Revenue in USD |  |  |  | (1,201,617) |  | (600,808) |  | (240,323) |  | 240,323 |  | 600,808 |  | 1,201,617
NDF |  |  |  | 1,069,155 |  | 534,578 |  | 213,831 |  | (213,831) |  | (534,578) |  | (1,069,155)
Collar |  |  |  | 125,221 |  | 58,990 |  | 19,316 |  | (8,236) |  | (47,269) |  | (113,500)
Net effect |  |  |  | (7,241) |  | (7,240) |  | (7,176) |  | 18,256 |  | 18,961 |  | 18,962

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|  | Scenario
Exchange rate - Operating results |  | Base (1) |  | - 50% |  | - 25% |  | - 10% |  | + 10% |  | + 25% |  | + 50%
USD |  | 5.4066 |  | 2.7033 |  | 4.0550 |  | 4.8659 |  | 5.9473 |  | 6.7583 |  | 8.1099
Cost of Sales |  |  |  | (108,453) |  | (54,227) |  | (21,691) |  | 21,691 |  | 54,227 |  | 108,453
NDF |  |  |  | 108,453 |  | 54,227 |  | 21,691 |  | (21,691) |  | (54,227) |  | (108,453)
Net effect |  |  |  | - |  | - |  | - |  | - |  | - |  | -
Soy Grain - CBOT |  | 508 |  | 254 |  | 381 |  | 457 |  | 559 |  | 635 |  | 762
Cost of Sales |  |  |  | (6,251) |  | (3,126) |  | (1,250) |  | 1,250 |  | 3,126 |  | 6,251
NDF |  |  |  | 6,251 |  | 3,126 |  | 1,250 |  | (1,250) |  | (3,126) |  | (6,251)
Net effect |  |  |  | - |  | - |  | - |  | - |  | - |  | -
Soybean Meal - CBOT |  | 368 |  | 184 |  | 276 |  | 331 |  | 405 |  | 460 |  | 552
Cost of Sales |  |  |  | 27,438 |  | 13,719 |  | 5,488 |  | (5,488) |  | (13,719) |  | (27,438)
Collar |  |  |  | (24,604) |  | (9,876) |  | (1,329) |  | 1,050 |  | 7,229 |  | 21,552
NDF |  |  |  | (3,534) |  | (1,767) |  | (707) |  | 707 |  | 1,767 |  | 3,534
Net effect |  |  |  | (700) |  | 2,076 |  | 3,452 |  | (3,731) |  | (4,723) |  | (2,352)
Corn - CBOT |  | 258 |  | 129 |  | 194 |  | 233 |  | 284 |  | 323 |  | 388
Cost of Sales |  |  |  | (45,675) |  | (22,838) |  | (9,135) |  | 9,135 |  | 22,838 |  | 45,675
Collar |  |  |  | (85,512) |  | (36,547) |  | (9,086) |  | 7,486 |  | 34,729 |  | 83,693
NDF |  |  |  | 28,563 |  | 14,281 |  | 5,713 |  | (5,713) |  | (14,281) |  | (28,563)
Net effect |  |  |  | (102,624) |  | (45,104) |  | (12,508) |  | 10,908 |  | 43,286 |  | 100,805
Corn - B3 |  | 1,554 |  | 777 |  | 1,166 |  | 1,399 |  | 1,710 |  | 1,943 |  | 2,332
Cost of Sales |  |  |  | 53,238 |  | 26,619 |  | 10,648 |  | (10,648) |  | (26,619) |  | (53,238)
Collar |  |  |  | (67,031) |  | (29,600) |  | (7,141) |  | 5,040 |  | 26,576 |  | 64,007
Future |  |  |  | 21,310 |  | 10,655 |  | 4,262 |  | (4,262) |  | (10,655) |  | (21,310)
Net effect |  |  |  | 7,517 |  | 7,674 |  | 7,769 |  | (9,870) |  | (10,698) |  | (10,541)

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

24.7. Financial instruments by category

| Parent company
| 09.30.22
| Amortized cost |  | Fair value through profit and loss |  | Total
Assets |  |  |  |  |
Cash and bank | 125,326 |  | - |  | 125,326
Cash equivalents | - |  | 2,808,123 |  | 2,808,123
Marketable securities | - |  | 368,673 |  | 368,673
Restricted cash | 26,696 |  | - |  | 26,696
Trade accounts receivable | 5,710,574 |  | 317,529 |  | 6,028,103
Other receivables | 47,566 |  | - |  | 47,566
Derivatives not designated | - |  | 30,432 |  | 30,432
Derivatives designated as hedge accounting (1) | - |  | 65,475 |  | 65,475
Liabilities |  |  |  |  |
Trade accounts payable | (11,496,908) |  | - |  | (11,496,908)
Supply chain finance | (1,339,820) |  | - |  | (1,339,820)
Loans and borrowings (2) | (13,362,085) |  | (7,542,996) |  | (20,905,081)
Derivatives not designated | - |  | (28,169) |  | (28,169)
Derivatives designated as hedge accounting (1) | - |  | (136,986) |  | (136,986)
| (20,288,651) |  | (4,117,919) |  | (24,406,570)

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

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| Consolidated
| 09.30.22
| Amortized cost |  | Fair value through other comprehensive income | Fair value through profit and loss |  | Total
|  | Equity instruments |  |
Assets |  |  |  |  |  |  |
Cash and bank | 3,827,460 |  | - |  | - |  | 3,827,460
Cash equivalents | - |  | - |  | 4,508,264 |  | 4,508,264
Marketable securities | 418,025 |  | 11,163 |  | 433,891 |  | 863,079
Restricted cash | 86,971 |  | - |  | - |  | 86,971
Trade accounts receivable | 3,740,291 |  | - |  | 317,529 |  | 4,057,820
Other receivables | 47,566 |  | - |  | - |  | 47,566
Derivatives not designated | - |  | - |  | 30,432 |  | 30,432
Derivatives designated as hedge accounting (1) | - |  | - |  | 65,475 |  | 65,475
Liabilities |  |  |  |  |  |  |
Trade accounts payable | (12,999,150) |  | - |  | - |  | (12,999,150)
Supply chain finance | (1,339,820) |  | - |  | - |  | (1,339,820)
Loans and borrowings (2) | (16,502,730) |  | - |  | (7,542,996) |  | (24,045,726)
Derivatives not designated | - |  | - |  | (28,727) |  | (28,727)
Derivatives designated as hedge accounting (1) | - |  | - |  | (136,986) |  | (136,986)
| (22,721,387) |  | 11,163 |  | (2,353,118) |  | (25,063,342)

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

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

24.8. | Fair value of financial instruments

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

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

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

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

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

The table below presents the overall classification of financial instruments measured at fair value by measurement hierarchy. For the nine-month period ended on September 30, 2022, there were no changes among the 3 levels of hierarchy.

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| Parent company
| 09.30.22 |  | 12.31.21
| Level 1 |  | Level 2 |  | Total |  | Level 1 |  | Level 2 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Savings account and overnight | 22,795 |  | - |  | 22,795 |  | 57,584 |  | - |  | 57,584
Bank deposit certificates | - |  | 2,782,044 |  | 2,782,044 |  | - |  | 4,410,146 |  | 4,410,146
Financial treasury bills | 353,673 |  | - |  | 353,673 |  | 324,771 |  | - |  | 324,771
Investment funds | 18,284 |  | - |  | 18,284 |  | 19,079 |  | - |  | 19,079
Trade accounts receivable | - |  | 317,529 |  | 317,529 |  | - |  | 335,566 |  | 335,566
Derivatives | - |  | 95,907 |  | 95,907 |  | - |  | 143,302 |  | 143,302
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Derivatives | - |  | (165,155) |  | (165,155) |  | - |  | (367,291) |  | (367,291)
Loans and borrowings | - |  | (7,542,996) |  | (7,542,996) |  | - |  | (3,368,431) |  | (3,368,431)
| 394,752 |  | (4,512,671) |  | (4,117,919) |  | 401,434 |  | 1,153,292 |  | 1,554,726

| Consolidated
| 09.30.22 |  | 12.31.21
| Level 1 |  | Level 2 |  | Total |  | Level 1 |  | Level 2 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |  |  |
Fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |
Stocks | 11,163 |  | - |  | 11,163 |  | 13,338 |  | - |  | 13,338
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Savings account and overnight | 568,686 |  | - |  | 568,686 |  | 701,386 |  | - |  | 701,386
Term deposits | 1,114,800 |  | - |  | 1,114,800 |  | 179,071 |  | - |  | 179,071
Bank deposit certificates | - |  | 2,821,494 |  | 2,821,494 |  | - |  | 4,451,214 |  | 4,451,214
Financial treasury bills | 353,673 |  | - |  | 353,673 |  | 324,771 |  | - |  | 324,771
Investment funds | 18,572 |  | - |  | 18,572 |  | 35,718 |  | - |  | 35,718
Trade accounts receivable | - |  | 317,529 |  | 317,529 |  | - |  | 335,566 |  | 335,566
Derivatives | - |  | 95,907 |  | 95,907 |  | - |  | 145,355 |  | 145,355
Other titles | 64,930 |  | - |  | 64,930 |  | 5,445 |  | - |  | 5,445
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Fair value through profit and loss |  |  |  |  |  |  |  |  |  |  |
Derivatives | - |  | (165,713) |  | (165,713) |  | - |  | (369,304) |  | (369,304)
Loans and borrowings | - |  | (7,542,996) |  | (7,542,996) |  | - |  | (3,368,431) |  | (3,368,431)
| 2,131,824 |  | (4,473,779) |  | (2,341,955) |  | 1,259,729 |  | 1,194,400 |  | 2,454,129

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.

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|  |  |  | Parent company and Consolidated
|  |  |  |  |  | 09.30.22 |  | 12.31.21
|  | Currency |  | Maturity |  | Book value |  | Fair value |  | Book value |  | Fair value
BRF S.A. |  |  |  |  |  |  |  |  |  |  |  |
BRF SA BRFSBZ 4 3/4 |  | USD |  | 2024 |  | (1,588,570) |  | (1,585,633) |  | (1,653,847) |  | (1,726,951)
BRF SA BRFSBZ 3.95 |  | USD |  | 2023 |  | (1,253,549) |  | (1,269,123) |  | (1,303,821) |  | (1,337,246)
BRF SA BRFSBZ 4 7/8 |  | USD |  | 2030 |  | (3,187,271) |  | (2,894,213) |  | (3,914,280) |  | (3,993,593)
BRF SA BRFSBZ 5 3/4 |  | USD |  | 2050 |  | (3,751,065) |  | (2,949,389) |  | (4,423,083) |  | (4,521,103)
BRF SA BRFSBZ 5 7/8 |  | USD |  | 2022 |  | - |  | - |  | (396,802) |  | (409,454)
BRF SA BRFSBZ 2 3/4 |  | EUR |  | 2022 |  | - |  | - |  | (1,072,454) |  | (1,076,964)
Debenture - 1st Issue |  | BRL |  | 2032 |  | (2,486,511) |  | (2,295,170) |  | (823,946) |  | (821,444)
Debenture - 2nd Issue |  | BRL |  | 2030 |  | (2,364,077) |  | (2,149,132) |  | (2,351,363) |  | (2,382,298)
Debenture - 3rd Issue |  | BRL |  | 2031 |  | (1,052,289) |  | (790,041) |  | (1,034,706) |  | (915,353)
Parent company |  |  |  |  |  | (15,683,332) |  | (13,932,701) |  | (16,974,302) |  | (17,184,406)
BRF GmbH |  |  |  |  |  |  |  |  |  |  |  |
BRF SA BRFSBZ 4.35 |  | USD |  | 2026 |  | (2,674,020) |  | (2,402,064) |  | (2,779,725) |  | (2,854,701)
Consolidated |  |  |  |  |  | (18,357,352) |  | (16,334,765) |  | (19,754,027) |  | (20,039,107)

| 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), healthcare (health and wellness), pet food, as well as commercialization of agricultural products.

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

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

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|  | Consolidated
|  |  |  | 2022 |  |  |  | 2021
Net sales |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Brazil |  |  |  |  |  |  |  |
In-natura |  | 1,553,224 |  | 4,461,471 |  | 1,634,165 |  | 4,380,670
Poultry |  | 1,136,070 |  | 3,397,259 |  | 1,255,312 |  | 3,324,314
Pork and other |  | 417,154 |  | 1,064,212 |  | 378,853 |  | 1,056,356
Processed |  | 5,253,748 |  | 14,750,432 |  | 4,740,367 |  | 13,167,042
Other sales |  | 8,380 |  | 22,633 |  | 17,509 |  | 54,550
|  | 6,815,352 |  | 19,234,536 |  | 6,392,041 |  | 17,602,262
International |  |  |  |  |  |  |  |
In-natura |  | 5,500,653 |  | 14,918,138 |  | 4,642,946 |  | 13,250,947
Poultry |  | 4,869,430 |  | 13,484,040 |  | 4,047,027 |  | 11,291,729
Pork and other |  | 631,223 |  | 1,434,098 |  | 595,919 |  | 1,959,218
Processed |  | 985,862 |  | 2,626,872 |  | 758,768 |  | 2,162,453
Other sales |  | 70,455 |  | 233,439 |  | 46,992 |  | 284,362
|  | 6,556,970 |  | 17,778,449 |  | 5,448,706 |  | 15,697,762
Other segments |  | 683,719 |  | 2,023,410 |  | 549,238 |  | 1,318,839
|  | 14,056,041 |  | 39,036,395 |  | 12,389,985 |  | 34,618,863

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

|  | Consolidated
|  |  |  | 2022 |  |  |  | 2021
|  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Brazil |  | 48,090 |  | (700,554) |  | 515,846 |  | 1,015,749
International |  | 417,680 |  | 607,047 |  | 113,515 |  | 569,495
Other segments |  | 125,448 |  | 324,134 |  | 105,017 |  | 282,076
Sub total |  | 591,218 |  | 230,627 |  | 734,378 |  | 1,867,320
Corporate |  | (27,830) |  | (53,909) |  | (3,898) |  | 71,393
|  | 563,388 |  | 176,718 |  | 730,480 |  | 1,938,713

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

|  | Consolidated
|  |  |  | 2022 |  |  |  | 2021
Corporate |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Reversal/(provision) for tax and civil contingencies |  | (16,943) |  | (40,640) |  | (35,230) |  | 39,695
Gains (losses) with demobilization |  | 7,645 |  | 2,094 |  | (634) |  | (3,654)
Expenses COVID-19 (1) |  | (399) |  | (1,527) |  | (23,386) |  | (48,382)
Investigations involving the Company (note 1.4) |  | - |  | (355) |  | (412) |  | (8,554)
Results with sale and disposal of fixed assets |  | (18,987) |  | (14,635) |  | 4,173 |  | 16,258
Impairment and result in the sale of investments |  | - |  | - |  | 52,557 |  | 76,147
Other |  | 854 |  | 1,154 |  | (966) |  | (117)
|  | (27,830) |  | (53,909) |  | (3,898) |  | 71,393

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

No customer individually or in aggregate (economic group) accounted for more than 5% of net sales for the nine-month period ended September 30, 2022 and 2021.

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

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| Consolidated
| Goodwill |  | Trademarks |  | Total
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Brazil | 1,151,498 |  | 1,151,498 |  | 982,478 |  | 982,478 |  | 2,133,976 |  | 2,133,976
International | 1,893,529 |  | 1,813,986 |  | 416,745 |  | 275,982 |  | 2,310,274 |  | 2,089,968
Other segments | 459,273 |  | 459,699 |  | 474,875 |  | 474,875 |  | 934,148 |  | 934,574
| 3,504,300 |  | 3,425,183 |  | 1,874,098 |  | 1,733,335 |  | 5,378,398 |  | 5,158,518

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
|  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Gross sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | 8,448,936 |  | 23,672,060 |  | 7,916,297 |  | 21,802,401 |  | 8,448,936 |  | 23,672,060 |  | 7,916,297 |  | 21,802,401
International | 4,933,713 |  | 13,082,857 |  | 4,262,740 |  | 11,868,422 |  | 6,823,852 |  | 18,530,825 |  | 5,839,915 |  | 16,826,837
Other segments | 490,133 |  | 1,434,411 |  | 483,392 |  | 1,273,498 |  | 837,669 |  | 2,466,362 |  | 625,962 |  | 1,473,572
| 13,872,782 |  | 38,189,328 |  | 12,662,429 |  | 34,944,321 |  | 16,110,457 |  | 44,669,247 |  | 14,382,174 |  | 40,102,810
Sales deductions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | (1,633,584) |  | (4,437,524) |  | (1,524,256) |  | (4,200,139) |  | (1,633,584) |  | (4,437,524) |  | (1,524,256) |  | (4,200,139)
International | (36,156) |  | (112,439) |  | (11,130) |  | (21,887) |  | (266,882) |  | (752,376) |  | (391,209) |  | (1,129,075)
Other segments | (52,719) |  | (155,198) |  | (44,315) |  | (116,861) |  | (153,950) |  | (442,952) |  | (76,724) |  | (154,733)
| (1,722,459) |  | (4,705,161) |  | (1,579,701) |  | (4,338,887) |  | (2,054,416) |  | (5,632,852) |  | (1,992,189) |  | (5,483,947)
Net sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil | 6,815,352 |  | 19,234,536 |  | 6,392,041 |  | 17,602,262 |  | 6,815,352 |  | 19,234,536 |  | 6,392,041 |  | 17,602,262
International | 4,897,557 |  | 12,970,418 |  | 4,251,610 |  | 11,846,535 |  | 6,556,970 |  | 17,778,449 |  | 5,448,706 |  | 15,697,762
Other segments | 437,414 |  | 1,279,213 |  | 439,077 |  | 1,156,637 |  | 683,719 |  | 2,023,410 |  | 549,238 |  | 1,318,839
| 12,150,323 |  | 33,484,167 |  | 11,082,728 |  | 30,605,434 |  | 14,056,041 |  | 39,036,395 |  | 12,389,985 |  | 34,618,863

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

| Parent company |  | Consolidated
|  |  | 2022 |  | 2021 Restated (1) |  |  |  | 2022 |  | 2021 Restated (1)
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Recovery of expenses (2) | 10,353 |  | 111,733 |  | 16,137 |  | 85,350 |  | 10,792 |  | 115,775 |  | 16,136 |  | 85,372
Provision reversal | 266 |  | 1,302 |  | 805 |  | 805 |  | 278 |  | 1,329 |  | 809 |  | 809
Scrap sales | 2,971 |  | 8,948 |  | 3,222 |  | 9,076 |  | 3,913 |  | 11,444 |  | 3,317 |  | 9,273
Provision for civil and tax risks | (17,351) |  | (92,258) |  | (31,998) |  | 42,974 |  | (17,738) |  | (93,098) |  | (32,202) |  | 42,518
Other employees benefits | (5,283) |  | (16,955) |  | (8,225) |  | (22,637) |  | (5,283) |  | (16,955) |  | (8,225) |  | (22,637)
Insurance claims costs | 8,462 |  | (17,992) |  | (17,279) |  | (28,805) |  | 7,924 |  | (18,402) |  | (16,741) |  | (28,023)
Gains (losses) on the disposal of non-financial assets | (19,031) |  | (16,700) |  | 9,487 |  | 16,790 |  | (18,863) |  | (16,687) |  | 53,761 |  | 89,775
Demobilization expenses | 7,645 |  | 2,094 |  | 521 |  | (2,472) |  | 7,645 |  | 2,094 |  | (634) |  | (3,654)
Expected credit losses in other receivables | (596) |  | (1,371) |  | 1,831 |  | 742 |  | (596) |  | (1,532) |  | 1,831 |  | 742
Other | 34,711 |  | 30,567 |  | (6,093) |  | (17,499) |  | 38,409 |  | 37,299 |  | (3,451) |  | (5,339)
| 22,147 |  | 9,368 |  | (31,592) |  | 84,324 |  | 26,481 |  | 21,267 |  | 14,601 |  | 168,836

| (1) | Restatement of the comparative balances to reflect the changes in the accounting practices described in note 3.

| (2) | Includes recovery of PIS, COFINS and ICMS taxes on inputs, INSS and other in the amount of R$37,135 for nine-month period ended September 30, 2022 in the parent company and in the consolidated (R$27,280 of recovery of PIS and COFINS taxes in the same period of previous year in the parent company and in the consolidated).

| 28. | FINANCIAL INCOME (EXPENSES), NET

|  |  | Parent company |  | Consolidated
|  |  |  |  | 2022 |  | 2021 Restated (1) |  |  |  | 2022 |  | 2021 Restated (1)
| Note |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Financial income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on cash and cash equivalents | 4 |  | 68,689 |  | 214,344 |  | 25,044 |  | 54,414 |  | 76,772 |  | 232,939 |  | 37,199 |  | 78,413
Income with marketable securities | 5 |  | 21,338 |  | 53,332 |  | 12,442 |  | 27,326 |  | 36,554 |  | 95,537 |  | 22,574 |  | 53,776
Fair value through profit and loss |  |  | 21,338 |  | 53,332 |  | 12,442 |  | 27,326 |  | 21,232 |  | 51,826 |  | 12,549 |  | 30,502
Amortized cost |  |  | - |  | - |  | - |  | - |  | 15,320 |  | 43,710 |  | 10,025 |  | 23,274
Interest on recoverable taxes | 9 |  | 58,139 |  | 203,269 |  | 60,848 |  | 172,771 |  | 58,334 |  | 203,864 |  | 60,908 |  | 172,870
Interest on other assets |  |  | 4,836 |  | 36,469 |  | 12,004 |  | 31,138 |  | 5,607 |  | 38,884 |  | 12,266 |  | 31,695
Financial income on other assets and liabilities (2) |  |  | 213,712 |  | 214,638 |  | (2) |  | 128 |  | 228,530 |  | 232,078 |  | 859 |  | 3,529
|  |  | 366,714 |  | 722,052 |  | 110,336 |  | 285,777 |  | 405,797 |  | 803,302 |  | 133,806 |  | 340,283
Financial expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interests on loans and borrowings | 15 |  | (423,552) |  | (1,191,232) |  | (324,083) |  | (1,051,519) |  | (473,537) |  | (1,333,745) |  | (378,072) |  | (1,206,295)
Interest with related parties | 30 |  | (56,765) |  | (180,695) |  | (99,841) |  | (256,588) |  | - |  | - |  | - |  | -
Interest on contingencies | 21 |  | (45,418) |  | (174,470) |  | (64,698) |  | (185,586) |  | (45,418) |  | (174,470) |  | (64,698) |  | (185,586)
Interest on leases | 18 |  | (53,233) |  | (143,130) |  | (42,508) |  | (128,282) |  | (60,460) |  | (160,790) |  | (48,554) |  | (165,535)
Interest on actuarial liabilities |  |  | (8,304) |  | (24,912) |  | (9,984) |  | (29,952) |  | (10,416) |  | (28,381) |  | (11,181) |  | (33,810)
Discount on assignment of credits |  |  | (39,202) |  | (105,088) |  | (18,908) |  | (45,256) |  | (41,022) |  | (109,740) |  | (20,212) |  | (50,342)
Bank expenses |  |  | (11,481) |  | (30,274) |  | (10,665) |  | (32,233) |  | (23,966) |  | (66,304) |  | (16,707) |  | (65,052)
Taxes on financial income |  |  | (17,889) |  | (35,721) |  | (5,408) |  | (14,413) |  | (21,617) |  | (41,682) |  | (6,845) |  | (18,523)
Put/Call Options Result - Business Combinations |  |  | - |  | - |  | - |  | - |  | - |  | - |  | (352,790) |  | (278,618)
Adjustment to present value | 6 and 16 |  | (297,153) |  | (720,363) |  | (168,524) |  | (455,016) |  | (291,968) |  | (705,569) |  | (170,911) |  | (457,011)
Other financial expenses |  |  | (15,836) |  | (50,022) |  | 29,000 |  | 6,177 |  | (31,164) |  | (75,900) |  | 22,781 |  | (10,106)
|  |  | (968,833) |  | (2,655,907) |  | (715,619) |  | (2,192,668) |  | (999,568) |  | (2,696,581) |  | (1,047,189) |  | (2,470,878)
Foreign exchange and monetary variations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exchange rate variation on monetary assets and liabilities |  |  | (388,817) |  | 1,276,015 |  | (1,656,614) |  | (822,234) |  | (137,469) |  | 519,917 |  | (625,940) |  | (359,725)
Derivative results |  |  | (18,975) |  | (1,072,170) |  | 547,414 |  | 131,173 |  | (10,709) |  | (1,026,063) |  | 554,365 |  | 143,344
Net Monetary Gains or Losses (3) |  |  | - |  | - |  | - |  | - |  | 59,580 |  | 332,721 |  | - |  | -
|  |  | (407,792) |  | 203,845 |  | (1,109,200) |  | (691,061) |  | (88,598) |  | (173,425) |  | (71,575) |  | (216,381)
|  |  | (1,009,911) |  | (1,730,010) |  | (1,714,483) |  | (2,597,952) |  | (682,369) |  | (2,066,704) |  | (984,958) |  | (2,346,976)

| (1) | The Company changed the aggregation of the information in order to increase the level of details, restating the comparative balances in accordance.

| (2) | Gain of R$213,590 in the securities repurchase – early settlement of senior notes (note 15.4).

| (3) | Effects of monetary restatement resulting from operations in hyperinflationary economy (note 1.5).

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 78

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| 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
|  |  | 2022 |  | 2021 Restated (1) |  |  |  | 2022 |  | 2021 Restated (1)
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Costs of sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Raw materials and supplies (2) | 7,674,893 |  | 21,944,609 |  | 6,534,525 |  | 17,836,496 |  | 8,772,474 |  | 25,419,760 |  | 7,494,190 |  | 20,971,383
Salaries and employees benefits (3) | 1,095,423 |  | 3,245,562 |  | 1,094,044 |  | 3,152,268 |  | 1,179,308 |  | 3,514,408 |  | 1,119,419 |  | 3,223,171
Depreciation | 555,286 |  | 1,598,607 |  | 488,834 |  | 1,410,371 |  | 586,146 |  | 1,706,339 |  | 529,589 |  | 1,537,582
Amortization | 20,089 |  | 60,602 |  | 16,160 |  | 55,031 |  | 45,648 |  | 135,538 |  | 32,106 |  | 103,626
Other | 739,936 |  | 2,248,704 |  | 706,751 |  | 2,050,110 |  | 874,507 |  | 2,566,531 |  | 726,497 |  | 2,086,343
| 10,085,627 |  | 29,098,084 |  | 8,840,314 |  | 24,504,276 |  | 11,458,083 |  | 33,342,576 |  | 9,901,801 |  | 27,922,105
Sales expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect and direct logistics expenses | 1,060,631 |  | 2,573,229 |  | 749,253 |  | 1,969,731 |  | 950,458 |  | 2,388,081 |  | 711,813 |  | 1,915,329
Marketing | 130,110 |  | 353,891 |  | 128,563 |  | 361,337 |  | 169,689 |  | 480,436 |  | 166,046 |  | 482,650
Salaries and employees benefits (3) | 306,820 |  | 864,438 |  | 285,000 |  | 810,516 |  | 418,903 |  | 1,182,347 |  | 375,153 |  | 1,085,430
Depreciation | 38,962 |  | 121,367 |  | 45,277 |  | 138,793 |  | 89,186 |  | 249,263 |  | 81,781 |  | 273,804
Amortization | 10,673 |  | 37,959 |  | 16,314 |  | 57,742 |  | 15,794 |  | 51,180 |  | 21,971 |  | 76,121
Other | 156,106 |  | 468,206 |  | 124,170 |  | 368,367 |  | 216,102 |  | 661,784 |  | 179,369 |  | 481,170
| 1,703,302 |  | 4,419,090 |  | 1,348,577 |  | 3,706,486 |  | 1,860,132 |  | 5,013,091 |  | 1,536,133 |  | 4,314,504
Administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employees benefits (3) | 67,110 |  | 177,723 |  | 62,679 |  | 179,524 |  | 104,029 |  | 275,969 |  | 100,117 |  | 295,765
Fees | 15,675 |  | 45,051 |  | 18,270 |  | 47,209 |  | 15,747 |  | 45,208 |  | 18,270 |  | 47,209
Depreciation | 6,075 |  | 17,502 |  | 5,099 |  | 22,252 |  | 7,345 |  | 25,097 |  | 8,176 |  | 34,882
Amortization | 11,120 |  | 20,457 |  | 6,793 |  | 28,695 |  | 15,088 |  | 27,312 |  | 7,212 |  | 30,278
Other (4) | 25,424 |  | 68,168 |  | 69,600 |  | 123,100 |  | 54,963 |  | 144,534 |  | 99,262 |  | 192,616
| 125,404 |  | 328,901 |  | 162,441 |  | 400,780 |  | 197,172 |  | 518,120 |  | 233,037 |  | 600,750

| (1) | Restatement of the comparative balances to reflect the changes in the accounting practices described in note 3.

| (2) | Includes recoveries of ICMS, PIS and COFINS taxes on inputs, INSS credits and export credits in the amount of R$62,330 for nine-month period ended September 30, 2022 (R$43,817 in the same period of previous year).

| (3) | Includes expenses on restructuring in the amount of: (i) R$13,493 in the cost of sales, (ii) R$14,478 in the selling expenses and (iii) R$6,090 in the administrative expenses (null in the same period of the previous year).

| (4) | Includes expenses with mergers and acquisitions in the amount of R$15 for nine-month period ended September 30, 2022 (R$22,482 in the same period of previous year).

The Company incurred in expenses with internal research and development of new products of R$26,549 for the nine-month period ended on September 30, 2022 in the parent company and in the consolidated (R$30,840 in the parent company and in the consolidated in the same period of the previous year) and R$6,791 for the three-month period ended on September 30, 2022 in the parent company and in the consolidated (R$10,385 in the parent company and in the consolidated in the same period of the previous year).

BRF S.A. | INTERIM FINANCIAL INFORMATION – September 30, 2022 | 79

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| 30. | RELATED PARTIES

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

|  |  |  |  |  |  |  |  |  | Parent company
| Accounts receivable |  | Dividends and interest on shareholders' equity receivable |  | Trade accounts payable |  | Advance for future capital increase |  | Other rights |  | Advances and other liabilities
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Banvit | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 1,118 |  | 609 |  | - |  | -
BRF Energia S.A. | - |  | - |  | - |  | - |  | (5,043) |  | (25,932) |  | - |  | - |  | - |  | - |  | -
BRF Foods GmbH | 563,400 |  | 608,379 |  | - |  | - |  | - |  | - |  | - |  | 171 |  | 137 |  | - |  | (61)
BRF Global GmbH | 4,245,001 |  | 4,937,329 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (6,665,577) | (1) | (10,562,776)
BRF GmbH | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (1,531,037) | (2) | (1,830,251)
BRF Pet S.A. | 954 |  | 3,489 |  | - |  | - |  | (260) |  | (174) |  | 170,348 |  | - |  | 588 |  | - |  | -
Federal Foods | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (517)
Hercosul Alimentos Ltda. | 8,662 |  | - |  | - |  | - |  | - |  | - |  | - |  | 322 |  | 4 |  | - |  | -
Hercosul International S.R.L. | 957 |  | - |  | - |  | - |  | (1,987) |  | - |  | - |  | - |  | - |  | - |  | -
Joody Al Sharqiya Food Production Factory LLC | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 62 |  | - |  | -
Mogiana Alimentos S.A. | 17,470 |  | 2,741 |  | - |  | - |  | - |  | - |  | - |  | 363 |  | - |  | - |  | -
Sadia Alimentos S.A. | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (4,392) |  | (4,265)
Sadia Chile S.A. | 275,590 |  | 172,499 |  | - |  | - |  | - |  | - |  | - |  | 85 |  | 5 |  | - |  | -
Sadia Uruguay S.A. | 6,421 |  | 340 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (44,407) |  | (41,655)
VIP S.A. Empreendimentos e Partic. Imob. | - |  | - |  | 14 |  | 14 |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Marfrig Global Foods S.A. | 9,606 |  | 9,252 |  | - |  | - |  | (26,378) |  | (35,312) |  | - |  | - |  | - |  | - |  | -
Marfrig Chile S.A. | 2,516 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Quickfood S.A. | 24,811 |  | 8,690 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Pampeano Alimentos S.A. | 76 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total | 5,155,464 |  | 5,742,719 |  | 14 |  | 14 |  | (33,668) |  | (61,418) |  | 170,348 |  | 2,059 |  | 1,405 |  | (8,245,413) |  | (12,439,525)

| (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
| 09.30.22 |  | 12.31.21 |  | 09.30.22 |  | 12.31.21
Marfrig Global Foods S.A. | 9,606 |  | 9,252 |  | (31,421) |  | (36,058)
Marfrig Chile S.A. | 3,769 |  | 1,434 |  | (69) |  | (24)
Quickfood S.A. | 24,811 |  | 8,690 |  | - |  | -
Pampeano Alimentos S.A. | 76 |  | - |  | - |  | -
Total | 38,262 |  | 19,376 |  | (31,490) |  | (36,082)

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|  |  |  |  | Parent company
| Sales |  | Financial results, net |  | Purchases
|  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021 |  |  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
BRF Energia S.A. | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (85,213) |  | (251,287) |  | (99,627) |  | (169,145)
BRF Foods GmbH | 114,614 |  | 279,574 |  | 71,773 |  | 179,113 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
BRF Global GmbH | 4,502,250 |  | 12,084,487 |  | 3,905,988 |  | 11,029,983 |  | (55,754) |  | (177,817) |  | (98,922) |  | (254,526) |  | - |  | - |  | - |  | -
BRF Pet S.A. | 1,935 |  | 8,681 |  | 3,954 |  | 9,742 |  | - |  | - |  | - |  | - |  | (67) |  | (266) |  | - |  | -
Establecimiento Levino Zaccardi y Cia. S.A. | - |  | - |  | - |  | - |  | - |  | - |  | 3 |  | 10 |  | - |  | - |  | - |  | -
Hercosul Alimentos Ltda. | 12,939 |  | 24,502 |  | - |  | - |  | - |  | - |  | - |  | - |  | (901) |  | (15,748) |  | - |  | -
Hercosul Distrib. Ltda. | - |  | 4,082 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Hercosul International S.R.L. | 1,503 |  | 2,708 |  | - |  | - |  | - |  | - |  | - |  | - |  | (2,028) |  | (3,773) |  | - |  | -
Hercosul Solução em Transportes | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (221) |  | (431) |  | - |  | -
Mogiana Alimentos S.A. | 21,219 |  | 28,964 |  | - |  | - |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Sadia Alimentos S.A. | - |  | - |  | - |  | - |  | (44) |  | (128) |  | (35) |  | (119) |  | - |  | - |  | - |  | -
Sadia Chile S.A. | 98,593 |  | 243,176 |  | 45,307 |  | 129,213 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Sadia Uruguay S.A. | 24,476 |  | 75,882 |  | 16,345 |  | 47,705 |  | (967) |  | (2,750) |  | (887) |  | (1,953) |  | - |  | - |  | - |  | -
Marfrig Global Foods S.A. | 16,898 |  | 58,955 |  | 12,982 |  | 20,925 |  | - |  | - |  | - |  | - |  | (100,034) |  | (354,906) |  | (80,986) |  | (130,861)
Marfrig Chile S.A. | 2,378 |  | 5,413 |  | - |  | 1,376 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Quickfood S.A. | 32,603 |  | 56,469 |  | 19,207 |  | 19,207 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Marfrig Alimentos S.A. | - |  | 242 |  | 139 |  | 139 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total | 4,829,408 |  | 12,873,135 |  | 4,075,695 |  | 11,437,403 |  | (56,765) |  | (180,695) |  | (99,841) |  | (256,588) |  | (188,464) |  | (626,411) |  | (180,613) |  | (300,006)

| Consolidated
| Sales | Purchases
|  |  | 2022 |  |  |  | 2021 |  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep | Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Marfrig Global Foods S.A. | 16,898 |  | 58,954 |  | 12,982 |  | 20,925 | (150,218) |  | (418,995) |  | (96,907) |  | (151,437)
Marfrig Chile S.A. | 3,816 |  | 12,186 |  | 899 |  | 3,055 | (742) |  | (934) |  | - |  | -
Quickfood S.A. | 32,603 |  | 59,432 |  | 19,207 |  | 19,207 | - |  | - |  | - |  | -
Marfrig Alimentos S.A. | - |  | 242 |  | 139 |  | 139 | - |  | - |  | (54,530) |  | (54,530)
Total | 53,317 |  | 130,814 |  | 33,227 |  | 43,326 | (150,960) |  | (419,929) |  | (151,437) |  | (205,967)

The subsidiaries of the Company enter into loan agreements pursuant its cash management strategy, respecting market conditions. As of September 30, 2022, the balance of these transactions was R$2,175,789 (R$2,327,576 as of December 31, 2021).

The Company made contributions related to the post-employment benefit plans of its employees to BRF Previdência, which holds these plans (note 20). Additionally, the Company leased properties owned by BRF Previdência, and for the nine-month period ended on September 30, 2022 the total amount of lease payments was R$16,269 (R$15,410 in the same period of the previous year) and for three-month period ended on September 30, 2022 the total amount of lease payments was R$5,973 (R$5,202 in the same period of the previous 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
|  |  | 2022 |  |  |  | 2021
| Jul - Sep |  | Jan - Sep |  | Jul - Sep |  | Jan - Sep
Salary and profit sharing | 14,650 |  | 46,681 |  | 14,930 |  | 46,117
Short-term benefits (1) | 112 |  | 357 |  | 76 |  | 500
Private pension | 196 |  | 641 |  | 282 |  | 872
Termination benefits | 177 |  | 1,237 |  | 200 |  | 1,698
Share-based payment | 6,715 |  | 20,612 |  | 7,668 |  | 21,854
| 21,850 |  | 69,528 |  | 23,156 |  | 71,041

| (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$20,402 for the nine-month period ended on September 30, 2022 (R$19,484 in the same period of the previous year)

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and for the three-month period ended on September 30, 2022 R$9,868 (R$6,257 in the same period of the previous year).

| 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
|  | 09.30.22 |  | 09.30.22
Current |  | 4,481,448 |  | 4,838,352
Non-current |  | 3,308,041 |  | 3,378,733
October to december 2023 |  | 401,406 |  | 414,717
2024 |  | 893,045 |  | 942,264
2025 |  | 684,320 |  | 687,110
2026 |  | 433,305 |  | 435,962
2027 onwards |  | 895,965 |  | 898,680
|  | 7,789,489 |  | 8,217,085

| 32. | TRANSACTIONS THAT DO NOT INVOLVE CASH

The following transactions did not involve cash or cash equivalents during the nine-month period ended on September 30, 2022:

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

| (ii) | Addition of lease by right-of-use assets and respective lease liability: for the nine-month period ended on September 30, 2022 amounted to R$643,362 in the parent company and R$948,982 in the consolidated (R$327,024 in the parent company and R$551,554 in the same period of the previous year) and for the three-month period ended on September 30, 2022 amounted to R$285,628 in the parent company and R$419,778 in the consolidated (R$131,195 in the parent company and R$172,979 in the same period of the previous year).

| 33. | EVENTS AFTER THE REPORTING PERIOD

33.1. | Revolving Credit Facility

On October 21, 2022 the Company’s Board of Directors approved the renewal with Banco do Brasil S.A. of a revolving credit facility, with matures in December 2022, up the limit of R$ 1,5 billion, for the next 2 years. The referred credit facility can be drawn totally or partially, at the Company’s discretion, whenever necessary.

33.2. | Agreement with the Public Investment Fund

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

The agreement provides for the incorporation of a legal entity in Saudi Arabia with an ownership of up to 70% by BRF and up to 30% by HPDC. The entity will operate in the entire chicken production chain in Saudi Arabia and promote the sale of fresh, frozen and processed products. The entity will have a combined investment of US$ 500,000,000.00, of which (i) US$ 125,000,000.00 will be contributed by BRF GmbH and by HPDC upon the incorporation of the entity; and (ii) the remainder will be contributed pursuant to the investment plan to be prepared by the parties. The agreement also foresees the creation of Halal Headquarters, a Halal Food Innovation Center and a Center of Excellence in Saudi Arabia.

33.3. Senior Notes repurchase

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During October 2022, the Company repurchased its 5.75% Senior Notes due on 2050, in the principal amount equivalent to R$220,704 (USD41,890). The Company paid the amount of R$159,221 (USD30,222) for the repurchase of these liabilities, amount that includes principal, interest and premium.

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| 34. | APPROVAL OF THE INTERIM FINANCIAL INFORMATION

The financial statements were approved and the issuance authorized by the Board of Directors on November 9, 2022.

BOARD OF DIRECTORS |
Global President Office (Non-Independent) | Marcos Antonio Molina dos Santos
Vice-Chairman (Non-Independent) | Sérgio Agapito Lires Rial
Independent Member | Aldo Luiz Mendes
Independent Member | Altamir Batista Mateus da Silva
Independent Member | Deborah Stern Vieitas
Non-Independent Member | Eduardo Augusto Rocha Pocetti
Non-Independent Member | Márcia Aparecida Pascoal Marçal dos Santos
Independent Member | Pedro de Camargo Neto
Independent Member | Augusto Marques da Cruz Filho
Independent Member | Flavia Maria Bittencourt
FISCAL COUNCIL |
Member | Attílio Guaspari
Member | Marco Antônio Peixoto Simões Velozo
Member | Bernardo Szpigel
AUDIT AND INTEGRITY COMMITTEE |
Comittee Coordinator | Augusto Marques da Cruz Filho
Member | Deborah Stern Vieitas
Member | Eduardo Augusto Rocha Pocetti
External Member | Manoel Cordeiro Silva Filho
BOARD OF EXECUTIVE OFFICERS |
Global Chief Executive Officer | Miguel de Souza Gularte
Financial and Investor Relations Vice-President | Fabio Luis Mendes Mariano
People, Sustainability and Digital Vice-Presiden | Alessandro Rosa Bonorino
Agribusiness and Product Quality Vice-President | Fabio Duarte Stumpf
International Markets and Planning Vice-President | Leonardo Campo Dallorto
Brazil Commercial Vice-President | Manoel Reinaldo Manzano Martins Junior
Marketing and New Businesses Vice-President | Marcel Sacco
Supply Chain Vice-President | Vinícius Guimarães Barbosa

Marcos Roberto Badollato |
Accounting Director - CRC 1SP219369/O-4 |

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BREAKDOWN OF THE CAPITAL BY OWNER (NOT REVIEWED)

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

|  | 09.30.22 |  | 12.31.21
Shareholders |  | Quantity |  | % |  | Quantity |  | %
Major shareholders |  |  |  |  |  |  |  |
Marfrig Global Foods S.A. |  | 360,133,580 |  | 33.27 |  | 269,734,803 |  | 33.20
Caixa de Previd. dos Func. do Banco do Brasil |  | 67,560,738 |  | 6.24 |  | 49,829,952 |  | 6.13
Kapitalo Investimentos Ltda. |  | 55,730,079 |  | 5.15 |  | 40,784,398 |  | 5.02
Management |  |  |  |  |  |  |  |
Board of Directors |  | 4,600 |  | 0.01 |  | 6,314,932 |  | 0.78
Executives |  | 588,056 |  | 0.05 |  | 917,317 |  | 0.11
Treasury shares |  | 4,356,397 |  | 0.40 |  | 5,053,554 |  | 0.62
Other |  | 594,099,796 |  | 54.88 |  | 439,838,290 |  | 54.14
|  | 1,082,473,246 |  | 100.00 |  | 812,473,246 |  | 100.00

The shareholding positions above are presented in accordance with the last Reference Form filed by the Company and may not represent the current position held on the stock exchange.

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

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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. (“the Company”) contained in the Quarterly Information Form - ITR for the quarter ended September 30, 2022, which comprises the statement of financial position as of September 30, 2022 and the respective statements of income (loss) and comprehensive income (loss), for the three and nine-month periods then ended, and changes in equity and cash flows for the nine-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 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 qualified in respect of these matters.

Other matters - Statements of Value Added

The interim financial information mentioned above includes Statements of Value Added, individual and consolidated, for the nine-month period ended September 30, 2022, prepared under the responsibility of the Company's management, 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, November 9, 2022

KPMG Auditores Independentes Ltda.

CRC 2SP014428/O-6

Original report in Portuguese signed by

Fabian Junqueira Sousa

Accountant CRC 1SP235639/O-0

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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 nine-month period ended on September 30, 2022, 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, November 9, 2022.

Augusto Marques da Cruz Filho

Coordinator

Eduardo Augusto Rocha Pocetti

Member

Deborah Stern Vieitas

Member

Manoel Cordeiro Silva Filho

External member

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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 nine-month period ended on September 30, 2022, 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 nine-month period ended on September 30, 2022.

São Paulo, November 9, 2022.

Miguel Gularte

Global Chief Executive Officer

Fabio Luis Mendes Mariano

Financial and Investor Relations Vice-President

Alessandro Rosa Bonorino

People, Sustainability and Digital Vice-President

Fabio Duarte Stumpf

Agribusiness and Product Quality Vice-President

Leonardo Campo Dallorto

International Markets and Planning Vice-President

Manoel Reinaldo Manzano Martins Junior

Brazil Commercial Vice-President

Marcel Sacco

Marketing and New Businesses Vice-President

Vinícius Guimarães Barbosa

Supply Chain Vice-President

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