2q09 earnings release highlights -...

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2Q09 EARNINGS RELEASE

Eusébio – Ceará state, August 07, 2009 – M. Dias Branco S.A. (Bovespa: MDIA3), leader in the Brazilian pasta, cookies and crackers markets, announces today its results for the second quarter of 2009 (2Q09). The company’s consolidated financial statements are prepared in accordance with the accounting practices adopted in Brazil, based on Brazilian Corporate Law and the regulations of the Brazilian SEC, known locally as the CVM. On December 28, 2007 and December, 04 2008, respectively Law 11.638 and Executive Decree 449 (converted in Law 11,941 of May 27, 2009), which amended several provisions of Law 6.404 (Brazilian Corporate Law). The accounting information herein reflects the chan ges in accounting practices introduced by this Law by the Accounting Announcements Committee – known as CPC – approved b y the Brazilian SEC (CVM). The period information on this document showcase the Company’s historical figures and, therefore, include the figures of Indústria Bomgosto Ltda. (Vitarella) only from April 2008, when this company was acquired by our subsidiary Adria Alimentos do Brasil Ltda. However, in order to allow further market comparative analysis, a pro forma Income Statement is presented at the end of this document with Vitarella numbers added to the company’s since January 2008.

MUDAR TAMU

HIGHLIGHTS

Net revenue totaled R$ 596.4 million in the 2Q09, 5.0% higher than on the 2Q08. In the 1H09 it reached R$ 1,167.2 million, 18.2% up on the 987.1 million in the 1H08.

Cookies and Crackers sales volume reached 92,200 tonnes in the 2Q9 and 174,500 tonnes in the 1H09, 39.2% up compared to 1H08.

Pasta sales volume reached 65,700 tonnes in the 2Q9 and 125,800 tonnes in the 1H09, 19.9% up compared to 1H08.

Net income climbed 43.4% in the 2Q09, reaching R$103.4 million and 51.3% in the 1H09, reaching R$181.4 million ;

EBITDA totaled R$125.7 million in the 2Q09 and R$245,4 million in the 1H09, versus R$108.7 million in the 2Q08 (+15.6%) and R$ 182.4 million in the 1H08 (+34.5%);

EBITDA Margin represented 21.1% of net revenue in the 2Q09, versus 19.1% at the same period of last year (+2.0 p.p) ;

Net Debt reduced from R$829.1 million in the 1H08 to R$ 514.4 million in the 1H09 (-38.0%), representing 1.2 of last twelve months EBITDA , while in the 1H08 it represented 2.6;

Capacity utilization came to 78.3% in the 1H09, versus 73.5% in the 1H08 (+4.8 p.p. ).

IR Contact

Geraldo Luciano Mattos Júnior CFO and Investor Relations Officer Tel: (55 85) 4005-5667 e-mail:[email protected]

Álvaro Luiz B. de Paula Investments and Investor Relations Director Phone: (55 85) 4005-5952 e-mail:[email protected] IR website: www.mdiasbranco.com.br/ir 2Q09 Results Conference Call

Date: August 11, 2009.

Time: > English (BR GAAP) 12.00 pm (Brasília Time) 11.00 am (US EST) Phone: +55 11 4688 6361 +1 888 700 0802 (USA) +1 786 924 6977 (other countries) Code: M Dias Replay: +55 11 4688 6312 Code: 253 > Portuguese (BR GAAP) 10.00 am (Brasília Time) 09.00 am (US EST) Phone: +55 11 4688-6361 Code: M Dias Replay: +55 11 4688-6312 Code: 727 Share Price: Closing Price on July 24, 2009 MDIA3: R$ 31.50 per share Market cap: R$ 3,573.7 million

Financial and Operating Results (R$ Million) 2Q09 2Q08 Variation 1H09 1H08 Variation

Net Revenue 596.4 568.1 5.0% 1167.2 987.1 18.2%

Cookies and Crackers Sales Volume (thousand tonnes) 92.2 77.8 18.5% 174.5 125.4 39.2%

Pasta Sales Volume (thousand tonnes) 65.7 54.8 19.9% 125.8 104.9 19.9%

Net Profit 103.4 72.1 43.4% 181.3 119.9 51.2%

EBITDA 125.8 108.7 15.7% 245.4 182.4 34.5%

EBITDA Margin 21.1% 19.1% 2 p.p 21.0% 18.5% 2,5 p.p

Net Debt 514.4 829.1 -38.0% 514.4 829.1 -38.0%

Net Debt / EBITDA (last 12 months) 1.2 2.6 -53.8% 1.2 2.6 -53.8%

Production Capacity Usage 79.8% 72.5% 7,3 p.p 78.3% 73.5% 4,8 p.p

Financial and Operating Results (R$ Million) 2Q09 2Q08 Variation 1H09 1H08 Variation

Net Revenue 596.4 568.1 5.0% 1167.2 987.1 18.2%

Cookies and Crackers Sales Volume (thousand tonnes) 92.2 77.8 18.5% 174.5 125.4 39.2%

Pasta Sales Volume (thousand tonnes) 65.7 54.8 19.9% 125.8 104.9 19.9%

Net Profit 103.4 72.1 43.4% 181.3 119.9 51.2%

EBITDA 125.8 108.7 15.7% 245.4 182.4 34.5%

EBITDA Margin 21.1% 19.1% 2 p.p 21.0% 18.5% 2,5 p.p

Net Debt 514.4 829.1 -38.0% 514.4 829.1 -38.0%

Net Debt / EBITDA (last 12 months) 1.2 2.6 -53.8% 1.2 2.6 -53.8%

Production Capacity Usage 79.8% 72.5% 7,3 p.p 78.3% 73.5% 4,8 p.p

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OPERATING HIGLIGHTS FINANCIAL HIGHLIGHTS

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

419.0

568.1613.2 592.2 570.8 596.4

0

100

200

300

400

500

600

700

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million

154,1

219,1 223,7 223,3240,7

258,7

36,8%38,6%

36,5%37,7%

42,2%43,4%

30%

40%

50%

0

50

100

150

200

250

300

1T08 2T08 3T08 4T08 1T09 2T09

R$ Milhões %

154,1

219,1 223,7 223,3240,7

258,7

36,8%38,6%

36,5%37,7%

42,2%43,4%

30%

40%

50%

0

50

100

150

200

250

300

1T08 2T08 3T08 4T08 1T09 2T09

R$ Milhões %

154,1

219,1 223,7 223,3240,7

258,7

36,8%38,6%

36,5%37,7%

42,2%43,4%

30%

40%

50%

0

50

100

150

200

250

300

1T08 2T08 3T08 4T08 1T09 2T09

R$ Milhões %

154,1

219,1 223,7 223,3240,7

258,7

36,8%38,6%

36,5%37,7%

42,2%43,4%

30%

40%

50%

0

50

100

150

200

250

300

1T08 2T08 3T08 4T08 1T09 2T09

R$ Milhões %

154,1

219,1 223,7 223,3240,7

258,7

36,8%38,6%

36,5%37,7%

42,2%43,4%

30%

40%

50%

0

50

100

150

200

250

300

1T08 2T08 3T08 4T08 1T09 2T09

R$ Milhões %

73.7

108.7 105.188.8

119.6 125.8

17.6%19.1%

17.1%15.0%

21.0%21.1%

5%

10%

15%

20%

25%

30%

0

50

100

150

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

73.7

108.7 105.188.8

119.6 125.8

17.6%19.1%

17.1%15.0%

21.0%21.1%

5%

10%

15%

20%

25%

30%

0

50

100

150

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

73.7

108.7 105.188.8

119.6 125.8

17.6%19.1%

17.1%15.0%

21.0%21.1%

5%

10%

15%

20%

25%

30%

0

50

100

150

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

73.7

108.7 105.188.8

119.6 125.8

17.6%19.1%

17.1%15.0%

21.0%21.1%

5%

10%

15%

20%

25%

30%

0

50

100

150

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

73.7

108.7 105.188.8

119.6 125.8

17.6%19.1%

17.1%15.0%

21.0%21.1%

5%

10%

15%

20%

25%

30%

0

50

100

150

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

NET INCOME AND NET MARGIN EBITDA AND EBITDA MARGIN

PRODUCTION DESTINY

74.6%

72.5%

79.9%

76.4%76.8%

79.8%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

74.6%

72.5%

79.9%

76.4%76.8%

79.8%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

74.6%

72.5%

79.9%

76.4%76.8%

79.8%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

WHEAT FLOUR

SHORTENING

CLIENT MIX 1H09

CAPACITY UTILIZATION (%)

SALES VOLUME EXCLUDING RETURNED SALES

GROSS PROFIT AND GROSS MARGIN NET REVENUE

Retail - 41.4%

Wholesale / Distributors - 40.4%

Main Chains - 13.9%

Industry - 3.5%

Others - 0.8%

Retail - 41.4%


Main Chains - 13.9%

Industry - 3.5%

Others - 0.8%

Retail - 41.4%


Main Chains - 13.9%

Industry - 3.5%

Others - 0.8%

47.6

77.8

88.383.4 82.3 92.2

50.1

54.860.8 62.5 60.1

65.7

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cookies &

Crackers

Pasta

Thousand Tonnes

47.6

77.8

88.383.4 82.3 92.2

50.1

54.860.8 62.5 60.1

65.7

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cookies &

Crackers

Pasta

Thousand Tonnes

47.6

77.8

88.383.4 82.3 92.2

50.1

54.860.8 62.5 60.1

65.7

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cookies &

Crackers

Pasta

Thousand Tonnes

47.6

77.8

88.383.4 82.3 92.2

50.1

54.860.8 62.5 60.1

65.7

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Cookies &

Crackers

Pasta

Thousand Tonnes

PRODUCTION DESTINY

50% 49% 54% 51%

50% 51% 46% 49%

2Q08 2Q09 1H08 1H09Sales Internal Consumption

50% 49% 54% 51%

50% 51% 46% 49%


50% 49% 54% 51%

50% 51% 46% 49%


50% 49% 54% 51%

50% 51% 46% 49%


50% 49% 54% 51%

50% 51% 46% 49%


COMPANY’S CONSUMPTION

66% 65%76%

64%

34% 35%24%

36%

2Q08 2Q09 1H08 1H09

Own Production External Origin

66% 65%76%

64%

34% 35%24%

36%

2Q08 2Q09 1H08 1H09


66% 65%76%

64%

34% 35%24%

36%

2Q08 2Q09 1H08 1H09


66% 65%76%

64%

34% 35%24%

36%

2Q08 2Q09 1H08 1H09


66% 65%76%

64%

34% 35%24%

36%

2Q08 2Q09 1H08 1H09


COMPANY’S CONSUMPTION

66%50%

66%55%

34%50%

34%45%


66%50%

66%55%

34%50%

34%45%


66%50%

66%55%

34%50%

34%45%


44%53% 53% 53%

56%47% 47% 47%

2Q08 2Q09 1H08 1H09Own Production External Origin

44%53% 53% 53%

56%47% 47% 47%


44%53% 53% 53%

56%47% 47% 47%


47.8

72.1

52.541.8

77.9

103.4

11.4%12.7%

8.6%7.1%

13.6%

17.4%

0%

5%

10%

15%

20%

25%

0

40

80

120

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

R$ Million %

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It is a pleasure for M. Dias Branco to present its 2Q09 results to our shareholders and to the society, which following what occurred in the first three months of the year, show the company’s capacity to conciliate a fast sales growth performance to the increase of its margins. Indeed, the Company is running a strong sales volume growth, selling 92,200 tonnes of cookies and crackers and 65,700 tonnes of pasta in the 2Q09, which represents an increase of 18.5% and 19.9%, respectively, compared to the 2Q08, when Vitarella was already integrated. Comparing semesters (1H09 x 1H08), our figures also impressed, with an increase of 39.2% in the cookies and crackers segment and 19.9% in the pasta segment. Sales growth, higher capacity occupation and consequent dilution of fixed costs, combined with our purchase strategy and storage capacity of the main raw materials – wheat and vegetable oils – led the Company reach 43.4% of gross margin in the 2Q09, the best gross margin since our IPO and almost 5 percentage points higher than in the same period of last year. Wheat flour average price decreased in the quarter influenced by the reduction in wheat quotations led the Company’s net revenue grow less than its sales volume, reaching R$596.4 million in the 2Q09 (+5.0%) and R$1,167.2 million in the 1H09 (+18.2%). Company reached in the 2Q09 the best EBITDA Margin since its IPO: 21.1%, with a cash flow generation of R$245.4 million, 34.5% higher than last year. The strong cash flow generation reduced our Net Debt / EBITDA from 2.6 in the 1H08 to 1.2 in the 1H09, indicating that this relation will be lower than 1.0 until the end of this year. The amount and speed of cash generation and the reduction of our indebtedness ratify our exceptional position in our sector consolidation, as well as the support to our expansion and organic growth. In the first semester of 2009, Company’s net profit was R$181.3 million, 51.2% higher than the R$119.9 million in the same period of last year. In the quarterly comparison, when Vitarella’s acquisition does not influence the figures, the growth was also significant: 43.4%, reaching R$103.4 million in the 2Q09. Company’s management keeps optimistic with its perfomance, although wheat prices may vary in the 3Q09 due to either the off-harvest period or the decrease in Argentina’s production, our expectation is that net margin can slightly affected. Moreover, the steady and continuous organic growth and the ongoing implementation of synergies in Vitarella will support us in obtaining good results in the medium term, so that our outstanding results achieved in 2009 will naturally be outperformed, confirming the excellent investment thesis of M. Dias Branco S/A. FINANCIAL AND OPERATING RESULTS - PRO FORMA In order to allow a comparison of the numbers without Vitarella’s acquisition effect, the Company shows a charter below with operational and financial data consolidating the results of the acquired company to the Company’s figures for the first quarter of 2008, which we refer to as pro forma figures.

MANAGEMENT COMMENTS

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This comparison intends to show that the company’s growth is not only from the sum of the acquired company’s numbers. Also, it is worth noting that the pro forma figures herein are presented for illustrative purposes only and are not intended to represent the Company’s operating results if the acquisition of Vitarella had occurred on January 1, 2008 and also are not necessarily an indication of our future operating results as synergy gains are not totally being taken into account. At the end of this report two income statements are available, one of them is historical and the other pro forma, in order to allow the market and the public in general to evaluate the effects of the acquisition on the Company’s historical figures and its performance in the relevant periods jointly with its new subsidiary, Vitarella. The Company’s activities are strongly concentrated in the production and sale of cookies, crackers and pasta whose production depends on two main inputs, which play a major role in our variable costs: (i) wheat (which represented 35.2% of COGS and 20.1% of net revenue in the 1H09); and (ii) vegetable oils (which represented 6.6% of COGS and 3.8% of net revenue in the 1H09). In addition, it is important to mention that wheat flour and shortening purchased from other suppliers in order to provide cookies, crackers and pasta production in Vitarella and Isabela factories represented 11.0% and 6.3% of COGS, respectively, in the 1H09. Management watches wheat and vegetable oils markets closely as they substantially affect results and we include below some pertinent information and comments. Regarding vegetable oils, we will highlight soybean and palm oil, which are the most relevant ones, although we also use cotton oil and palm kernel oil. WHEAT Wheat prices had a low variation during the first semester of 2009 due to an expectation of global production and inventories growth in 2009/10 harvest.

COMMODITIES MARKET

SegmentNet

RevenueWeight

AveragePrice

NetRevenue

WeightAverage

PriceNet

RevenueWeight

AveragePrice

Cookies and Crackers 608.9 174.5 3.49 507.1 149.6 3.30 20.1% 16.6% 2.9%

Pasta 293.2 125.8 2.33 254.3 114.4 2.22 15.3% 10.0% 5.0%

Wheat Flour and Bran 218.2 258.5 0.84 253.4 247.8 1.02 -13.9% 4.3% -17.6%

Margarine and Vegetable Shortening 46.9 19.2 2.44 48.2 19.8 2.43 -2.7% -3.0% 0.4%

Other 0.0 0.0 0.0 11.7 4.3 0.0 0.0% 0.0% 0.0%

TOTAL 1167.2 578.0 2.02 1074.7 535.9 2.01 8.6% 7.9% 0.5%

Variation1H09 1H08

SegmentNet

RevenueWeight

AveragePrice

NetRevenue

WeightAverage

PriceNet

RevenueWeight

AveragePrice


Pasta 293.2 125.8 2.33 254.3 114.4 2.22 15.3% 10.0% 5.0%



Other 0.0 0.0 0.0 11.7 4.3 0.0 0.0% 0.0% 0.0%

TOTAL 1167.2 578.0 2.02 1074.7 535.9 2.01 8.6% 7.9% 0.5%

Variation1H09 1H08

SegmentNet

RevenueWeight

AveragePrice

NetRevenue

WeightAverage

PriceNet

RevenueWeight

AveragePrice


Pasta 293.2 125.8 2.33 254.3 114.4 2.22 15.3% 10.0% 5.0%



Other 0.0 0.0 0.0 11.7 4.3 0.0 0.0% 0.0% 0.0%

TOTAL 1167.2 578.0 2.02 1074.7 535.9 2.01 8.6% 7.9% 0.5%

Variation1H09 1H08

Financial and Operating Results - pro forma(R$ Million) 1H09 1H08 Variation

Net Revenue 1167.2 1074.7 8.6%

Cookies and Crackers Sales Volume (thousand tonnes) 174.5 149.6 16.6%

Pasta Sales Volume (thousand tonnes) 125.8 114.4 10.0%

Net Profit 181.3 132.6 36.6%

EBITDA 245.4 196.9 24.6%

EBITDA Margin 21.0% 18.3% 2.7 p.p

Production Capacity Usage 78.3% 73.7% 4,6 p.p


Net Revenue 1167.2 1074.7 8.6%



Net Profit 181.3 132.6 36.6%

EBITDA 245.4 196.9 24.6%




Net Revenue 1167.2 1074.7 8.6%



Net Profit 181.3 132.6 36.6%

EBITDA 245.4 196.9 24.6%




Net Revenue 1167.2 1074.7 8.6%



Net Profit 181.3 132.6 36.6%

EBITDA 245.4 196.9 24.6%



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Global production in 2009/10 was estimated by the United States Department of Agriculture (USDA), according to its latest report released on July 10, 2009, at 656.5 million tonnes and the global consumption at 642.6 million tonnes. This situation implies the further increase of global inventories, bringing the relation inventories / consumption to 28.2% in this harvest against 19.7% in the 2007/08 crop. Despite the increase in global supply, Argentinean crop is estimated at 9.5 million tonnes due to its political and economical crisis, slightly higher than last harvest but a lot lower than its historical average, making its exports very small or even null. Thus, even with exports growth in Paraguay and Uruguay, Brazil will probably need to import wheat from outside of Mercosur to supply its total demand and, in the case of the Company, it will need to mix some types of wheat to produce flour with appropriate characteristics. Company expects during the second semester of 2009 wheat prices at similar level of first six months because, on its fundamental part, market has no reason to increase quotations. However, due to the aforementioned reasons, Company’s purchase price may increase a little bit. During the first semester of 2009, Company maintained its average purchase price lower than market prices, saving in average 6.0% in this period.

* Source: www.safras.com.br

VEGETABLE OILS Soybean oil market ended the first semester with lower prices compared to the beginning of this year. Despite the quotations’ increase at the beginning of second quarter, on June 2009, average price was 8.35% lower than on January of this year. In turn, palm oil increased its prices due to a strong presence of China in the market, after a great devaluation in the second semester of 2008. Chinese government decided to increase its soybean and vegetable oils public inventories for future consumption, growing considerably Chinese demand for these commodities. The United States Department of Agriculture (USDA) estimated on its latest report released at July 10, 2009, Chinese soybean oil imports at 2.5 million tonnes, 11.0% higher than last year, while its consumption should grow around 5%. For palm oil, USDA estimated that both imports and consumption will grow 9.1%. Nowadays, China is the greater importer and consumer of these

406

399

397

356

314 310

280

196174

213 222 218 215229

236

346

407

366 353

350 336

301

271

222

192 193 204 211 211 217

150

175

200

225

250

275

300

325

350

375

400

425

450

Apr-08 Jul-08 Oct-08 Jan-09 Apr-09

US$

MONTH

WHEATAcquisition Average Price M. Dias Branco X Market P rice

US$ / TON2008 and 2009

Market* MDias

Jun-09

406

399

397

356

314 310

280

196174

213 222 218 215229

236

346

407

366 353

350 336

301

271

222

192 193 204 211 211 217

150

175

200

225

250

275

300

325

350

375

400

425

450


US$

MONTH


US$ / TON2008 and 2009

Market* MDias

Jun-09

406

399

397

356

314 310

280

196174

213 222 218 215229

236

346

407

366 353

350 336

301

271

222

192 193 204 211 211 217

150

175

200

225

250

275

300

325

350

375

400

425

450


US$

MONTH


US$ / TON2008 and 2009

Market* MDias

Jun-09

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vegetable oils, representing, respectively, 25.2% and 26.8% of global soybean oil imports and consumption; and 17.9% and 13.5% of global palm oil imports and consumption. Notwithstanding the strong presence of China in the market, vegetable oils global production has been following the demand increase. The USDA forecast for soybean oil production in 2009/10 crop is 37.4 million tonnes, and its consumption is estimated at 37.3 million tonnes. For palm oil, global production forecast is 45.1 million while its consumption is estimated at 44.5 million tonnes. Company expects that vegetable oils prices will not oscillate very much in the second semester of 2009 due to a similar growth of their supply and demand. In addition, besides a good development of global soybean harvest, between August and November of this year it will have palm crop in Indonesia and Malaysia, increasing global supply of palm oil. However, it is important to pay attention at exogenous factors that may influence the price of theses commodities, like the development of world economy and oil prices. * Source: www.safras.com.br * Source: Braincorp

Our operating structure is formed by M. Dias Branco S/A, headquartered in Ceará, and our subsidiary, Adria Alimentos do Brasil Ltda, which acquired Indústria de Alimentos Bomgosto Ltda. (Vitarella), headquartered in Jaboatão dos Guararapes, Pernambuco state, and together, have 12 commercial units and 11 industrial units, whose production, commercialization and logistics distribution actions are coordinated in a centralized and integrated fashion. The industrial units are located in the States of Ceará (3 units), Rio Grande do Norte (1 unit), Bahia (1 unit), Paraíba (1 unit), Pernambuco (1 unit), São Paulo (3 units) and Rio Grande do Sul (1 unit). The Company’s production process is verticalized; it manufactures its two main inputs (flour and vegetable shortening) for the production of pasta, cookies and crackers. In the second quarter of 2009, 64.8% of all wheat flour and 53.4% of all vegetable shortening used were produced internally. It is important to mention that this percentage dropped significantly due to the purchase of flour and vegetable shortening from suppliers in order to use them in Vitarella’s production process. The use of our own flour and vegetable shortening has been growing consistently as synergies with the acquired company have been implemented. Regarding product distribution, 43.1% of total gross sales were made by direct channels in the 2Q09. Direct distribution is concentrated in large consumer centers; in other localities, distribution is outsourced.

OPERATING HIGHLIGHTS

2,933 2,794 2,784

2,720

2,348 2,370 2,311 2,170 2,095

2,162

2,010 2,040 2,127

2,190

1,981

2,508

2,739 2,734 2,659

2,560 2,560

2,406

2,149

2,050 2,016 1,997 1,921 1,930 1,938

1,990

1,700

2,100

2,500

2,900

Apr-08 Jul-08 Oct-08 Jan -09 Apr-09

R$

MONTH

SOYBEAN OILAcquisition Average Price M. Dias Branco X Market P rice

R$ / TON2008 and 2009

Market* MDias

Jun-09

2,933 2,794 2,784

2,720

2,348 2,370 2,311 2,170 2,095

2,162

2,010 2,040 2,127

2,190

1,981

2,508

2,739 2,734 2,659

2,560 2,560

2,406

2,149

2,050 2,016 1,997 1,921 1,930 1,938

1,990

1,700

2,100

2,500

2,900


R$

MONTH


R$ / TON2008 and 2009

Market* MDias

Jun-09

2,933 2,794 2,784

2,720

2,348 2,370 2,311 2,170 2,095

2,162

2,010 2,040 2,127

2,190

1,981

2,508

2,739 2,734 2,659

2,560 2,560

2,406

2,149

2,050 2,016 1,997 1,921 1,930 1,938

1,990

1,700

2,100

2,500

2,900


R$

MONTH


R$ / TON2008 and 2009

Market* MDias

Jun-09

2,933 2,794 2,784

2,720

2,348 2,370 2,311 2,170 2,095

2,162

2,010 2,040 2,127

2,190

1,981

2,508

2,739 2,734 2,659

2,560 2,560

2,406

2,149

2,050 2,016 1,997 1,921 1,930 1,938

1,990

1,700

2,100

2,500

2,900


R$

MONTH


R$ / TON2008 and 2009

Market* MDias

Jun-09

1,340

655

860792

1,340 1,350

810

583 605 655

630 650

1,260

975855

1,113

1,332 1,347

1,351 1,351 1,350 1,238

649

1,039 1,023

699 699

649 649

1,125

550

850

1.150

1.450


US$

MONTH

PALM OILAcquisition Average Price M. Dias Branco X Market P rice

US$ / TON2008 and 2009

Market* MDias

,

Jun-09

, 1,340

655

860792

1,340 1,350

810

583 605 655

630 650

1,260

975855

1,113

1,332 1,347

1,351 1,351 1,350 1,238

649

1,039 1,023

699 699

649 649

1,125

550

850

1.150

1.450


US$

MONTH


US$ / TON2008 and 2009

Market* MDias

,

Jun-09

, 1,340

655

860792

1,340 1,350

810

583 605 655

630 650

1,260

975855

1,113

1,332 1,347

1,351 1,351 1,350 1,238

649

1,039 1,023

699 699

649 649

1,125

550

850

1.150

1.450


US$

MONTH


US$ / TON2008 and 2009

Market* MDias

,

Jun-09

, 1,340

655

860792

1,340 1,350

810

583 605 655

630 650

1,260

975855

1,113

1,332 1,347

1,351 1,351 1,350 1,238

649

1,039 1,023

699 699

649 649

1,125

550

850

1.150

1.450


US$

MONTH


US$ / TON2008 and 2009

Market* MDias

,

Jun-09

,

of 24

As shown in the following chart, wholesale/distributors have bigger participation on Company’s sales and the sales to our major client represents only 4.2% of net revenue in the 1H09, which shows our fragmented client base and low dependence of main chains.

Sequence Accumulated Individual Accumulated Individual A ccumulated

Major Client 1 32.0 4.6% 4.6% 57.3 4.2% 4.2%

49 Subsequent 50 199.1 28.5% 33.1% 381.7 28.0% 32.2%

50 Subsequent 100 63.2 9.0% 42.1% 121.5 8.9% 41.1%

900 Subsequent 1,000 183.5 26.2% 68.3% 352.7 25.8% 66.9%

Other Clients All clients 222.1 31.7% 100.0% 452.5 33.1% 100.0%

TOTAL 699.9 1365.7

Major Clients Sales 2Q09 (R$ million)

Participation on Net Revenue excluding Disconts Sales Sales 1H09

(R$ million)

Sales Relative Participation

In the 1H09, the Company’s installed capacity utilization came to 78.3%, 4.8 p.p. over the 1H08 (73.5%), chiefly due to increase in production caused by the growth in sales volume and the acquisition of Vitarella, which operated at almost full capacity at the time of the acquisition. On the other hand, at the beginning of 1Q09 it started working one more cookies’ production line in the Vitarella unit, decreasing its level of capacity utilization.

2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08

Total Production 92.8 79.6 66.6 58.4 216.4 197.5 16.4 16.1 392.2 351.6

Total Production Capacity 119.0 112.6 90.2 90.2 262.6 262.7 19.5 19.5 491.3 485.0

Capacity Usage 78.0% 70.7% 73.8% 64.7% 82.4% 75.2% 84.1% 82.6% 79.8% 72.5%

* Thousand tonnes

1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08



Capacity Usage 74.2% 68.7% 72.0% 65.4% 81.8% 77.4% 85.9% 79.0% 78.3% 73.5%

* Thousand tonnes

Effective Production / Production Capacity *

Cookies and Crackers

PastaWheat Flour and

BranMargarine and

Vegetable Shortening




BranMargarine and


Total

Total

2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08



Capacity Usage 78.0% 70.7% 73.8% 64.7% 82.4% 75.2% 84.1% 82.6% 79.8% 72.5%

* Thousand tonnes

1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08



Capacity Usage 74.2% 68.7% 72.0% 65.4% 81.8% 77.4% 85.9% 79.0% 78.3% 73.5%

* Thousand tonnes




BranMargarine and





BranMargarine and


Total

Total

2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08



Capacity Usage 78.0% 70.7% 73.8% 64.7% 82.4% 75.2% 84.1% 82.6% 79.8% 72.5%

* Thousand tonnes

1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08



Capacity Usage 74.2% 68.7% 72.0% 65.4% 81.8% 77.4% 85.9% 79.0% 78.3% 73.5%

* Thousand tonnes




BranMargarine and





BranMargarine and


Total

Total

2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08



Capacity Usage 78.0% 70.7% 73.8% 64.7% 82.4% 75.2% 84.1% 82.6% 79.8% 72.5%

* Thousand tonnes

1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08



Capacity Usage 74.2% 68.7% 72.0% 65.4% 81.8% 77.4% 85.9% 79.0% 78.3% 73.5%

* Thousand tonnes




BranMargarine and





BranMargarine and


Total

Total

2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08



Capacity Usage 78.0% 70.7% 73.8% 64.7% 82.4% 75.2% 84.1% 82.6% 79.8% 72.5%

* Thousand tonnes

1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08



Capacity Usage 74.2% 68.7% 72.0% 65.4% 81.8% 77.4% 85.9% 79.0% 78.3% 73.5%

* Thousand tonnes




BranMargarine and





BranMargarine and


Total

Total

Client Mix 2Q09 2Q08 Variation 1H09 1H08 Variation

Retail 40.0% 43.1% -3.1 p.p 41.4% 44.0% -2.6 p.p

Wholesale/ Distributors 41.6% 38.5% 3.1 p.p 40.4% 38.1% 2.3 p.p

Main Chanes 14.1% 12.6% 1.5 p.p 13.9% 11.5% 2.4 p.p

Industry 3.0% 5.4% -2.4 p.p 3.5% 6.2% -2.7 p.p

Other 1.3% 0.4% 0.9 p.p 0.8% 0.2% 0.6 p.p

TOTAL 100.0% 100.0% 100.0% 100.0%


Retail 40.0% 43.1% -3.1 p.p 41.4% 44.0% -2.6 p.p


Main Chanes 14.1% 12.6% 1.5 p.p 13.9% 11.5% 2.4 p.p

Industry 3.0% 5.4% -2.4 p.p 3.5% 6.2% -2.7 p.p

Other 1.3% 0.4% 0.9 p.p 0.8% 0.2% 0.6 p.p

TOTAL 100.0% 100.0% 100.0% 100.0%


Retail 40.0% 43.1% -3.1 p.p 41.4% 44.0% -2.6 p.p


Main Chanes 14.1% 12.6% 1.5 p.p 13.9% 11.5% 2.4 p.p

Industry 3.0% 5.4% -2.4 p.p 3.5% 6.2% -2.7 p.p

Other 1.3% 0.4% 0.9 p.p 0.8% 0.2% 0.6 p.p

TOTAL 100.0% 100.0% 100.0% 100.0%

of 24

GROSS REVENUE Consolidated gross revenue totaled R$705.2 million in the 2Q09, decreasing 3.0% over the R$726.7 million recorded in the same period of the previous year due to the change on our discounts policy on February, 2009, when company started invoicing excluding unconditional discounts. This change reduced both gross revenue and sales deductions, having no effect on net revenue.

Gross revenue deductions fell by 6.4 p.p ., from 21.8% of gross revenue in the 2Q08 to 15.4% in the 2Q09, resulting mainly from the changes on our commercial discounts policy, as mentioned before, in spite of the reduction in the PIS/COFINS tax on the sale of wheat flour granted by the Federal Government from May 28 to December 31, 2008, via Executive Decree 433/08 and then changed to the Law 11,787/08. This exemption was extended until 12/31/2010 by the article 2 of Executive Decree 465/09.

Due to the changes on our commercial discounts policy in the first quarter of 2009, it is presented below the analysis of net revenue in order to facilitate the comparison of all information.

NET REVENUE

Mainly due to the increase in sales volume, net revenue reached R$596.4 million in the 2Q09 , 5.0% higher than the 1Q08. In the 1H09 net revenue totaled R$1,167.2 million, 18.2% up on the R$987.1 million recorded in the 1H08. Part of this increase is due to the acquisition of Vitarella, but If we compare pro forma net revenue, company increased 8.6% in relation to the 1H08.

RESULTS

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice

Cookies and Crackers 745.3 177.0 4.21 597.4 127.2 4.70 24.8% 39.2% -10.4%

Pasta 352.4 128.4 2.74 293.6 107.1 2.74 20.0% 19.9% 0.0%

Wheat Flour anda Bran 242.3 259.3 0.93 301.4 248.6 1.21 -19.6% 4.3% -23.1%

Margarine and Vegetable Shortening 60.8 19.6 3.10 66.7 20.0 3.34 -8.8% -2.0% -7.2%

Other - - - 14.9 4.3 - - - -

TOTAL 1400.8 584.3 2.40 1274.0 507.2 2.51 10.0% 15.2% -4.4%

*Gross Revenue in R$ million, Weight in thousand tonnes and Average Price in R$/Kg.

Variation1H09 1H08

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 352.4 128.4 2.74 293.6 107.1 2.74 20.0% 19.9% 0.0%



Other - - - 14.9 4.3 - - - -

TOTAL 1400.8 584.3 2.40 1274.0 507.2 2.51 10.0% 15.2% -4.4%


Variation1H09 1H08

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 352.4 128.4 2.74 293.6 107.1 2.74 20.0% 19.9% 0.0%



Other - - - 14.9 4.3 - - - -

TOTAL 1400.8 584.3 2.40 1274.0 507.2 2.51 10.0% 15.2% -4.4%


Variation1H09 1H08

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 352.4 128.4 2.74 293.6 107.1 2.74 20.0% 19.9% 0.0%



Other - - - 14.9 4.3 - - - -

TOTAL 1400.8 584.3 2.40 1274.0 507.2 2.51 10.0% 15.2% -4.4%


Variation1H09 1H08

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 178.0 67.1 2.65 159.7 55.8 2.86 11.5% 20.3% -7.3%



Other - - - 14.9 4.3 - 0.0% 0.0% 0.0%

TOTAL 705.2 302.4 2.33 726.7 271.2 2.68 -3.0% 11.5% -13.1%


2Q09 2Q08 Variation

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 178.0 67.1 2.65 159.7 55.8 2.86 11.5% 20.3% -7.3%



Other - - - 14.9 4.3 - 0.0% 0.0% 0.0%

TOTAL 705.2 302.4 2.33 726.7 271.2 2.68 -3.0% 11.5% -13.1%


2Q09 2Q08 Variation

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 178.0 67.1 2.65 159.7 55.8 2.86 11.5% 20.3% -7.3%



Other - - - 14.9 4.3 - 0.0% 0.0% 0.0%

TOTAL 705.2 302.4 2.33 726.7 271.2 2.68 -3.0% 11.5% -13.1%


2Q09 2Q08 Variation

SegmentGross

RevenueWeight

AveragePrice

Gross Revenue

WeightAverage

PriceGross

RevenueWeight

AveragePrice


Pasta 178.0 67.1 2.65 159.7 55.8 2.86 11.5% 20.3% -7.3%



Other - - - 14.9 4.3 - 0.0% 0.0% 0.0%

TOTAL 705.2 302.4 2.33 726.7 271.2 2.68 -3.0% 11.5% -13.1%


2Q09 2Q08 Variation

of 24

SegmentNet

RevenueWeight

AveragePrice

NetRevenue

WeightAverage

PriceNet

RevenueWeight

AveragePrice


Pasta 150.1 65.7 2.28 129.8 54.8 2.37 15.6% 19.9% -3.8%



Other - - - 11.7 4.3 - - - -

TOTAL 596.4 299.1 1.99 568.1 268.5 2.12 5.0% 11.4% -6.1%

* Net Revenue in R$ million, Weight excluding returned sales in thousand tonnes and Net Average Price in R$/Kg.

2Q09 2Q08 Variation

SegmentNet

RevenueWeight

AveragePrice

NetRevenue

WeightAverage

PriceNet

RevenueWeight

AveragePrice


Pasta 293.2 125.8 2.33 236.8 104.9 2.26 23.8% 19.9% 3.1%



Other - - - 11.7 4.3 - - - -

TOTAL 1167.2 578.0 2.02 987.1 502.2 1.97 18.2% 15.1% 2.5%

* Net Revenue in R$ million, Weight excluding returned sales in thousand tonnes and Net Average Price in R$/Kg.

1H09 1H08 Variation

53.2% 47.6% 52.2%44.3%

25.2%22.8%

25.1%

24.0%

17.8%23.1%

18.7%25.7%

3.8% 4.4% 4.0% 4.9%

2Q09 2Q08 1H09 1H08

Net Revenue Breakdown

Margarine and Vegetable Shortening

Wheat Flour and Bran

Pasta

Cookies and Crackers53.2% 47.6% 52.2%

44.3%

25.2%22.8%

25.1%

24.0%

17.8%23.1%

18.7%25.7%

3.8% 4.4% 4.0% 4.9%

2Q09 2Q08 1H09 1H08




Pasta


44.3%

25.2%22.8%

25.1%

24.0%

17.8%23.1%

18.7%25.7%

3.8% 4.4% 4.0% 4.9%

2Q09 2Q08 1H09 1H08




Pasta


44.3%

25.2%22.8%

25.1%

24.0%

17.8%23.1%

18.7%25.7%

3.8% 4.4% 4.0% 4.9%

2Q09 2Q08 1H09 1H08




Pasta


44.3%

25.2%22.8%

25.1%

24.0%

17.8%23.1%

18.7%25.7%

3.8% 4.4% 4.0% 4.9%

2Q09 2Q08 1H09 1H08




Pasta


of 24

COOKIES & CRACKERS

Net revenue from the Cookies and Crackers segment totaled R$317.6 million in the 2Q09, 17.5% up quarter-on-quarter, thanks to the robust growth in sales volume (+18.5%), from 77,800 tonnes in the 2Q08 to 92,200 tonnes in the 2Q09, chiefly due to the sales growth of the brands Vitarella, Treloso, Adria and Isabela and the sales growth in the states of Sao Paulo, Pernambuco, Rio de Janeiro, Bahia and Rio Grande do Norte. Net average prices in the segment came from R$3.47/kg to R$3.44/kg in the 2Q09, decreasing 0.9%, due to the a decline of competitor’s prices, thanks to the reduction of flour prices, the main input of this segment. In the 1H09, prices maintained firm in the cookies and crackers segment, but net revenue totaled R$608.9 million , 39.3% higher than the 1H08, chiefly due to the increase of 39.2% in sales volume. Even though part of this growth was influenced by the acquisition of Vitarella in the 2Q08, the pro forma comparison shows also a great increase (+20.1%). In the 2Q09, brands Adria, Vitarella/Treloso, Zabet and Isabela increased their net revenue excluding returned sales by 23.6%, 23.0%, 22.2% and 20.3%, respectively, compared to the 2Q08.

PASTA

Pasta revenue totaled R$150.1 million in the 2Q09, 15.6% over the R$129.8 million recorded in the 2Q08, thanks to the increase in sales volume, which came from 54,800 tonnes in the 2Q08 to 65,700 in the 2Q09 (+19.9%). Average price of this segment came from R$2.37/kg in the 2Q08 to R$2.28/kg in the 2Q09, decreasing 3.8% chiefly due to the following reasons: (i) price reduction because of lower flour costs; (ii) increase on our exports, which is billed with lower average price thanks to the deduction of taxes. Comparing the semesters, the company sold 19.9% more pasta, reaching 125,800 tonnes in the 1H09, versus 104,900 tonnes in the 1H08. Tthe growth in sales volume was basically due to: (i) the repositioning of the brand “Imperador” in the state of Bahia; (ii) exports increase; and (iii) sales volume growth of the brand Vitarella in consequence of the utilization of production capacity in other factories. The brands Imperador, Vitarella and Richester increased their net revenue excluding returned sales by 138.4%, 65.9% and 19.0%, respectively, compared to 2Q08.

23.7% 26.2% 23.5% 26.0%

19.8% 13.9% 19.8%7.6%

9.7%11.3%

10.5%

12.5%

13.0% 15.7% 12.8%15.7%

9.6% 9.4% 10.3%10.5%

9.2% 10.2% 9.0%10.4%

9.9% 4.8% 8.5%5.8%

5.1% 8.5% 5.6%11.5%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

IMPERADOR

ISABELA

RICHESTER

BASILAR

FORTALEZA

VITARELLA

ADRIA

PASTA

Gross Revenue excluding Returned Sales Evolution by Brands

23.7% 26.2% 23.5% 26.0%

19.8% 13.9% 19.8%7.6%

9.7%11.3%

10.5%

12.5%

13.0% 15.7% 12.8%15.7%

9.6% 9.4% 10.3%10.5%

9.2% 10.2% 9.0%10.4%

9.9% 4.8% 8.5%5.8%

5.1% 8.5% 5.6%11.5%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

IMPERADOR

ISABELA

RICHESTER

BASILAR

FORTALEZA

VITARELLA

ADRIA

PASTA


23.7% 26.2% 23.5% 26.0%

19.8% 13.9% 19.8%7.6%

9.7%11.3%

10.5%

12.5%

13.0% 15.7% 12.8%15.7%

9.6% 9.4% 10.3%10.5%

9.2% 10.2% 9.0%10.4%

9.9% 4.8% 8.5%5.8%

5.1% 8.5% 5.6%11.5%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

IMPERADOR

ISABELA

RICHESTER

BASILAR

FORTALEZA

VITARELLA

ADRIA

PASTA


23.7% 26.2% 23.5% 26.0%

19.8% 13.9% 19.8%7.6%

9.7%11.3%

10.5%

12.5%

13.0% 15.7% 12.8%15.7%

9.6% 9.4% 10.3%10.5%

9.2% 10.2% 9.0%10.4%

9.9% 4.8% 8.5%5.8%

5.1% 8.5% 5.6%11.5%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

IMPERADOR

ISABELA

RICHESTER

BASILAR

FORTALEZA

VITARELLA

ADRIA

PASTA


23.7% 26.2% 23.5% 26.0%

19.8% 13.9% 19.8%7.6%

9.7%11.3%

10.5%

12.5%

13.0% 15.7% 12.8%15.7%

9.6% 9.4% 10.3%10.5%

9.2% 10.2% 9.0%10.4%

9.9% 4.8% 8.5%5.8%

5.1% 8.5% 5.6%11.5%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

IMPERADOR

ISABELA

RICHESTER

BASILAR

FORTALEZA

VITARELLA

ADRIA

PASTA


18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER

COOKIES AND CRACKERS


18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER



18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER



18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER



18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER



18.8% 21.3% 19.4%25.6%

19.3%20.6% 19.4%

23.8%

33.0% 30.8% 33.3%19.1%

9.4% 9.0% 9.3%10.5%

9.0% 8.4% 8.8% 9.9%

6.1% 5.8% 5.9% 6.3%4.4% 4.1% 3.9% 4.8%

2Q09 2Q08 1H09 1H08

OTHER OWN BRANDS

ZABET

ADRIA

ISABELA

VITARELLA/TRELOSO

FORTALEZA

RICHESTER



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WHEAT FLOUR AND BRAN

Wheat flour and bran net revenue totaled R$106.0 million in the 2Q09, decreasing 19.3% compared to the 2Q08, explained by the reduction in average price, which came from R1.08/kg in the 2Q08 to R$0.80/kg in the 2Q09 (-25.9%). In the 2Q09, wheat flour and bran sales volume increased by 8.2% quarter-on-quarter, reaching 131,800 tonnes. In the 1H09, wheat flour and bran net revenue totaled R$218.2 million , reducing 13.9% compared to the 1H08, chiefly due to the decrease in wheat flour average price because of wheat prices fall. The following graph presents the growth of net revenue participation of the brands Medalha de Ouro (industrial), Finna (domestic) and Adorita (industrial).

MARGARINE AND VEGETABLE SHORTENING

Margarine and vegetable shortening quarterly revenue reached R$22.7 million in the 2Q09, 9.2% less than the R$25.0 million in the 2Q08. Average price diminished 5.5%, from R$2.55/kg in the 2Q08 to R$2.41/kg in the 2Q09, due to the reduction of vegetable oil prices, the main input of this segment. Sales volume totaled 9,400 tonnes in the 2Q09, decreasing 4.1% compared to the same period of 2008. This reduction was due to the necessity to supply our cookies and crackers factories demand of margarine/shortening and also because of difficulty of negotiation with external suppliers. Comparing the semesters, company’s net revenue totaled R$46.9 million in the 1H09, 2.7% lower than the R$48.2 million recorded in the 1H08 as a result of sales volume decrease. In the following graph, the participation increase of the brand Puro Sabor can be observed.

45.5% 44.1% 45.2% 44.8%

23.8% 23.6% 24.3% 22.8%

6.6% 5.2%6.9% 5.4%

5.5%3.6%

4.9%4.0%

3.5%5.0%

3.5%5.4%

15.1% 18.5% 15.2% 17.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

MONARCA

ARATU

ADORITA

FINNA

MEDALHA DE OURO

FLOUR


45.5% 44.1% 45.2% 44.8%

23.8% 23.6% 24.3% 22.8%

6.6% 5.2%6.9% 5.4%

5.5%3.6%

4.9%4.0%

3.5%5.0%

3.5%5.4%

15.1% 18.5% 15.2% 17.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

MONARCA

ARATU

ADORITA

FINNA

MEDALHA DE OURO

FLOUR


45.5% 44.1% 45.2% 44.8%

23.8% 23.6% 24.3% 22.8%

6.6% 5.2%6.9% 5.4%

5.5%3.6%

4.9%4.0%

3.5%5.0%

3.5%5.4%

15.1% 18.5% 15.2% 17.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

MONARCA

ARATU

ADORITA

FINNA

MEDALHA DE OURO

FLOUR


45.5% 44.1% 45.2% 44.8%

23.8% 23.6% 24.3% 22.8%

6.6% 5.2%6.9% 5.4%

5.5%3.6%

4.9%4.0%

3.5%5.0%

3.5%5.4%

15.1% 18.5% 15.2% 17.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

MONARCA

ARATU

ADORITA

FINNA

MEDALHA DE OURO

FLOUR


44.2% 39.2% 44.2% 38.9%

30.2%30.9%

29.7%31.9%

19.8%20.5%

18.8% 19.9%

2.7%2.4%

3.8% 2.7%

3.1%7.0%

3.5%6.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

GME

ADORITA

MEDALHA DE OURO

PURO SABOR

MARGARINE


44.2% 39.2% 44.2% 38.9%

30.2%30.9%

29.7%31.9%

19.8%20.5%

18.8% 19.9%

2.7%2.4%

3.8% 2.7%

3.1%7.0%

3.5%6.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

GME

ADORITA

MEDALHA DE OURO

PURO SABOR

MARGARINE


44.2% 39.2% 44.2% 38.9%

30.2%30.9%

29.7%31.9%

19.8%20.5%

18.8% 19.9%

2.7%2.4%

3.8% 2.7%

3.1%7.0%

3.5%6.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

GME

ADORITA

MEDALHA DE OURO

PURO SABOR

MARGARINE


44.2% 39.2% 44.2% 38.9%

30.2%30.9%

29.7%31.9%

19.8%20.5%

18.8% 19.9%

2.7%2.4%

3.8% 2.7%

3.1%7.0%

3.5%6.6%

2Q09 2Q08 1H09 1H08

OTHER BRANDS

GME

ADORITA

MEDALHA DE OURO

PURO SABOR

MARGARINE


of 24

OPERATING COSTS AND EXPENSES Operating costs and expenses totaled R$485.4 million in the 2Q09, only 0.2% up on the R$484.6 million recorded in the 2Q08. In the 1H09 operating costs and expenses reached R$951.8 million versus R$853.7 million in the 1H08. The main items that led to this result are detailed below. Costs of Goods Sold Operating Costs(R$ million) 2Q09

% Net Rev.

2Q08% Net Rev.

1H09% Net Rev.

1H08% Net Rev.

Raw material 230.9 38.7% 252.6 44.5% -8.6% -5.8 p.p 467.4 40.0% 450.7 45.7% 3.7% -5.7 p.p

Wheat 111.0 18.6% 139.4 24.5% -20.4% -5.9 p.p 234.9 20.1% 283.4 28.7% -17.1% -8.6 p.p

Vegetable Oil 20.3 3.4% 26.2 4.6% -22.5% -1.2 p.p 44.0 3.8% 48.8 4.9% -9.8% -1.1 p.p

Sugar 13.3 2.2% 6.9 1.2% 92.8% 1 p.p 23.2 2.0% 10.8 1.1% 114.8% 0.9 p.p

Third Party Flour 37.6 6.3% 37.4 6.6% 0.5% -0.3 p.p 73.2 6.3% 45.9 4.6% 59.5% 1.7 p.p

Third Party Vegetable Shortening 21.5 3.6% 19.0 3.3% 13.2% 0.3 p.p 42.0 3.6% 25.1 2.5% 67.3% 1.1 p.p

Other 27.2 4.6% 23.7 4.2% 14.8% 0.4 p.p 50.1 4.3% 36.7 3.7% 36.5% 0.6 p.p

Packages 42.6 7.1% 35.1 6.2% 21.4% 0.9 p.p 81.5 7.0% 62.0 6.3% 31.5% 0.7 p.p

Labor 42.6 7.1% 35.5 6.2% 20.0% 0.9 p.p 77.8 6.7% 60.5 6.1% 28.6% 0.6 p.p

Indirect costs 31.2 5.2% 26.7 4.7% 16.9% 0.5 p.p 60.1 5.1% 50.1 5.1% 20.0% 0 p.p

Depreciation and amortization 9.6 1.6% 13.1 2.3% -26.7% -0.7 p.p 19.5 1.7% 25.1 2.5% -22.3% -0.8 p.p

Other 1.6 0.3% 8.9 1.6% -82.0% -1.3 p.p 2.2 0.2% 9.2 0.9% -76.1% -0.7 p.p

Tax incentives (ICMS) -20.8 -3.5% -22.9 -4.0% -9.2% 0.5 p.p -40.7 -3.5% -43.7 -4.4% -6.9% 0.9 p.p

TOTAL 337.7 56.6% 349.0 61.4% -3.2% -4.8 p.p 667.8 57.2% 613.9 6 2.2% 8.8% -5 p.p

VariationVariation

Note: Other operating costs are mainly referred to vegetable oils sales in the 2Q08. Despite the 11.5% sales volume increase in the 2Q09 compared to the 2Q08, operating costs decreased 3.2% (56.6% of net revenue in the 2Q09 and 61.4% of net revenue in the 2Q08) resulted, especially, due to the following reasons:

The reduction of 21.2% on average cost of wheat and the reduction of 29.5% on vegetable oils prices, as well as the decrease on average costs of wheat flour and shortening bought from other suppliers, as shown in the Commodities section;

The reduction of depreciation and amortization expenses due to the revision of the company’s goods lifetime, carried out at the beginning of 2009.

The increase in cost of sugar, due to high demand of this commodity, thanks to the reduction in India and European Union production, distinguishing Brazil as one of the main global suppliers in 2009;

The increase in labor costs as a result of a collective bargaining;

The reduction of government grants, due to the reduction of purchasing price of wheat, since those incentives are calculated based on the purchase price of this raw material;

In the 1H09, operating costs increased 8.8% in absolute values compared to the same period of last year (from R$613.9 million to R$667.8 million), basically influenced by the same reasons as on the second quarter, besides Vitarella’s acquisition.

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Operating Expenses

Operating expenses rose from R$135.6 million in the 2Q08 to R$147.7 million in the 2Q09 (+8.9%) and in the 1H09 it increased 18.4% compared to the 1H08, due to the following reasons.

Selling expenses totaled R$115.4 million in the 2Q09 versus R$93.9 million recorded in the 2Q08 (+22.9%) chiefly due to the increase of R$5.3 million in freight expenses and R$8.5 million of bonus and contractual funds as a result of sales volume growth; pay rise for employees of R$3.9 million due to collective bargaining; marketing and advertising expenses in the 2Q09, which were R$0.6 million higher than in the 2Q08. The increase of selling expenses representativeness in relation to net revenue is especially due to: (i) the fact that sales volume grew more than net revenue, impacting logistics expenses representativeness; and (ii) increase on marketing expenses (contractual funds and bonuses) which are generally higher when there is more market influence to reduce pasta, cookies and crackers prices due to the decline of flour costs.

In the 1H09, selling expenses reached R$220.0 million , increasing 31.3% compared to the 1H08 due to the same reasons aforementioned, to the labor compensation in the 1Q09, as a result of our distribution system restructuring in some states and to the fact that Vitarella’s selling expenses were registered in the 1H08 only from April, 2008.

General and administrative expenses reached R$25.1 million in the 2Q09, decreasing 8.4% compared to R$27.4 million recorded in the 2Q08 because management and collaborators have been taken steps to reduce expenses, as well as the payment of labor compensation in the 2Q08, due to Vitarella’s organizational restructuring. If we consider the semester, General and administrative expenses rose by 7.9% in the 1H09 compared to the 1H08, chiefly due to the addition of Vitarella’s general and administrative expenses and expenses related to the collective bargaining.

Depreciation and amortization totaled R$4.7 million in the 2Q09, decreasing 53.5% compared to the 2Q08, and in the 1H09 it reduced 52.2% (from R$20.1 million in the 1H08 to R$9.6 million in the 1H09), due to the revision of company’s assets lifetime at the beginning of 2009. Also, it was forbidden the amortization of goodwill paid for future profitability, in accordance to the changes of Law 6,404/76 executed by the Law 11,638/07 and Law 11,941/09.

In the 2Q09, other operating revenues totaled R$2.4 million , basically due to the R$1.2 million of indemnification to the substation project of our factories Fábrica Fortaleza and Moinho Dias Branco, paid by the electrical energy company, as a result of the distribution responsibility charge, in accordance to the Normative Resolution number 250 of 02/13/2007 from the National Electrical Energy Agency (ANEEL). Moreover, it was recorded R$0.8 million from the provision reversal made in the past fiscal years.

Operating Expenses(R$ million) 2Q09

% Net Rev.

2Q08% Net Rev.

1H09% Net Rev.

1H08% Net Rev.

Selling 115.4 19.4% 93.9 16.5% 22.9% 2.9 p.p 220.0 18.8% 167.6 17.0% 31.3% 1.8 p.p

Administrative 25.1 4.2% 27.4 4.8% -8.4% -0.6 p.p 47.6 4.1% 44.1 4.5% 7.9% -0.4 p.p

Management fees 1.7 0.3% 1.6 0.3% 6.3% 0 p.p 3.2 0.3% 3.1 0.3% 6.5% 0 p.p

Taxes 3.2 0.5% 2.8 0.5% 14.3% 0 p.p 7.0 0.6% 6.4 0.6% 9.4% 0 p.p

Depreciation and amortization 4.7 0.8% 10.1 1.8% -53.5% -1 p.p 9.6 0.8% 20.1 2.0% -52.2% -1.2 p.p

Other operating expenses/(revenues) -2.4 -0.4% -0.2 0.0% 1100.0% -0.4 p.p -3.5 -0.3% -1.5 -0.2% 133.3% -0.1 p.p

TOTAL 147.7 24.8% 135.6 23.9% 8.9% 0.9 p.p 283.9 24.3% 239.8 24.3% 18.4% 0 p.p

Variation VariationOperating Expenses(R$ million) 2Q09

% Net Rev.

2Q08% Net Rev.

1H09% Net Rev.

1H08% Net Rev.

Selling 115.4 19.4% 93.9 16.5% 22.9% 2.9 p.p 220.0 18.8% 167.6 17.0% 31.3% 1.8 p.p



Taxes 3.2 0.5% 2.8 0.5% 14.3% 0 p.p 7.0 0.6% 6.4 0.6% 9.4% 0 p.p



TOTAL 147.7 24.8% 135.6 23.9% 8.9% 0.9 p.p 283.9 24.3% 239.8 24.3% 18.4% 0 p.p


% Net Rev.

2Q08% Net Rev.

1H09% Net Rev.

1H08% Net Rev.

Selling 115.4 19.4% 93.9 16.5% 22.9% 2.9 p.p 220.0 18.8% 167.6 17.0% 31.3% 1.8 p.p



Taxes 3.2 0.5% 2.8 0.5% 14.3% 0 p.p 7.0 0.6% 6.4 0.6% 9.4% 0 p.p



TOTAL 147.7 24.8% 135.6 23.9% 8.9% 0.9 p.p 283.9 24.3% 239.8 24.3% 18.4% 0 p.p


% Net Rev.

2Q08% Net Rev.

1H09% Net Rev.

1H08% Net Rev.

Selling 115.4 19.4% 93.9 16.5% 22.9% 2.9 p.p 220.0 18.8% 167.6 17.0% 31.3% 1.8 p.p



Taxes 3.2 0.5% 2.8 0.5% 14.3% 0 p.p 7.0 0.6% 6.4 0.6% 9.4% 0 p.p



TOTAL 147.7 24.8% 135.6 23.9% 8.9% 0.9 p.p 283.9 24.3% 239.8 24.3% 18.4% 0 p.p

Variation Variation

of 24

FINANCIAL RESULTS

In order to facilitate the understanding of the variation in our financial result, we decided to show and analyse our financial revenue and expenses excluding the effect of exchange rate variation in the period, as shown in the charter below: Financial revenue rose by 18.8% in the quarter, from R$4.8 million in the 2Q08 to R$5.7 million in the 2Q09, chiefly due to the redemption of prefixed investments in the 2Q08, allocated to the payment of Vitarella’s acquisition, reducing our investment profitability in this period. Comparing the semester, a reduction of 23.0% can be observed in the 1H09, due to the redemption of investments in Brazil, as previously mentioned. Financial expenses fell by 24.8%, from R$27.8 million in the 2Q08 to R$20.9 million in the 2Q09, chiefly due to the reduction of 33.1% in the company’s total indebtedness. In the 1H09 financial expenses increased 6.0% compared to the 1H08, as a result of interests from Vitarella’s acquisition debts since the 2Q08, when this company was acquired. Exchange rate gains changed from a revenue of R$22.3 million to R$27.1 million in the 2Q09, due to a larger devaluation of Real against U.S dollar in this period (-15.7%) compared to the 2Q08 (-9.0%) based on the company’s foreign currency liabilities. In the 1H09, exchange rate gains increased 26.8% due to the same reasons presented in the 2Q09.

OTHER REVENUES We recorded other revenues of R$0.8 million in the 1H09 thanks to the sale of non-operating properties. In the 1H08 other revenue totalled R$3.8 million chiefly due to an exclusive agreement entered into with financial institutions for the management of our payroll It is worth noting that the name of this section was amended by the Law 11,941/09, which changed the description of “non-operating revenue and expenses” to “other revenues and expenses”.

Financial Income(R$ million) 2Q09 2Q08 Variation 1H09 1H08 Variation

Financial Revenue 55.5 40.4 37.4% 82.9 79.8 3.9%

Financial Expenses -43.7 -41.0 6.6% -83.9 -80.2 4.6%

TOTAL 11.8 -0.6 - -1.0 -0.4 150.0%


Financial Revenue 55.5 40.4 37.4% 82.9 79.8 3.9%

Financial Expenses -43.7 -41.0 6.6% -83.9 -80.2 4.6%

TOTAL 11.8 -0.6 - -1.0 -0.4 150.0%


Financial Revenue 5.7 4.8 18.8% 13.7 17.8 -23.0%

Financial Expenses -21.0 -27.8 -24.5% -44.0 -41.4 6.3%

Exchange Variation 27.1 22.4 20.9% 29.3 23.2 26.2%

TOTAL 11.8 -0.6 - -1.0 -0.4 150.0%





TOTAL 11.8 -0.6 - -1.0 -0.4 150.0%





TOTAL 11.8 -0.6 - -1.0 -0.4 150.0%

of 24

INCOME AND SOCIAL CONTRIBUTION TAXES The increase of 88.1% in the income and social contribution taxes and 72.2% on the income tax incentive in the 1H09 compared to 1H08 was due to a better company’s results in the last semester and the acquisition of Vitarella, which also has one factory with income tax benefits. It is worth noting that after Law 11,638/07 and Law 11,941/09, income tax benefit also contemplates incentives for reinvestments.

NET INCOME Company’s net income increased 51.3% in the semester, from R$119.9 million in the 1H08 to R$181.4 million in the 1H09, as a result of better Company’s operating margins already showed in this document.

EBITDA EBITDA – NET INCOME:

EBITDA – GROSS REVENUE EBITDA CONCILIATION (R$ million) 2Q09 2Q08 Variation 1H 09 1H08 Variation

Gross Revenue 705.2 726.7 -3.0% 1400.8 1274.0 10.0%

Sales taxes and deductions on sales -108.8 -158.6 -31.4% -233.6 -286.9 -18.6%

Cost of goods sold -337.7 -349.0 -3.2% -667.8 -613.9 8.8%

Depreciation and Amortization over cost of goods 9.6 13.1 -26.7% 19.5 25.1 -22.3%

Operating Expenses -147.7 -135.6 8.9% -283.9 -239.8 18.4%

Depreciation and Amortization Adm/Com Expenses 4.7 10.1 -53.5% 9.6 20.1 -52.2%

Other revenues 0.4 2.0 -80.0% 0.8 3.8 -78.9%

EBITDA 125.8 108.7 15.7% 245.4 182.4 34.5%

EBITDA Margin 21.1% 19.1% 2 p.p 21.0% 18.5% 2.5 p.p

EBITDA CONCILIATION (R$ million) 2Q09 2Q08 Variation 1H 09 1H08 Variation

Net Profit 103.5 72.1 43.6% 181.4 119.9 51.3%

Income Tax and Social Contribution 34.6 23.2 49.1% 60.0 31.9 88.1%

Income Tax Incentive -14.7 -10.5 40.0% -26.0 -15.1 72.2%

Financial Revenues -55.5 -40.4 37.4% -82.9 -79.8 3.9%

Financial Expenses 43.6 41.1 6.1% 83.8 80.3 4.4%



EBITDA 125.8 108.7 15.7% 245.4 182.4 34.5%


EBITDA CONCILIATION (R$ million) 2Q09 2Q08 Variation 1H 09 1H08 Variation

Net Profit 103.5 72.1 43.6% 181.4 119.9 51.3%

Income Tax and Social Contribution 34.6 23.2 49.1% 60.0 31.9 88.1%


Financial Revenues -55.5 -40.4 37.4% -82.9 -79.8 3.9%

Financial Expenses 43.6 41.1 6.1% 83.8 80.3 4.4%



EBITDA 125.8 108.7 15.7% 245.4 182.4 34.5%


Income and Social Contribution Taxes(R$ million) 2Q09 2Q08 Variation 1H09 1H08 Variation

Income and Social Contribution Taxes 34.5 23.2 49.1% 60.0 31.9 88.1%


TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%




TOTAL 19.8 12.7 56.7% 34.0 16.8 102.4%

of 24

Capitalization (R$ million) 06/30/2009 03/31/2009 Variation 06/30/2008 Variation

Short Term 394.1 468.7 -15.9% 630.9 -37.5%

Long Term 325.5 391.2 -16.8% 445.5 -26.9%

Total Indebtedness 719.6 859.9 -16.3% 1076.4 -33.1%

(-) Cash * -205.2 -220.0 -6.7% -247.3 -17.0%

(=) Net Debt 514.4 639.9 -19.6% 829.1 -38.0%

(+) Shareholders Equity 1383.2 1285.3 7.6% 1150.9 20.2%

Capitalization 2102.8 2145.2 -2.0% 2227.3 -5.6%

* Includes Cash and Cash equivalents.

Financial Indicator 06/30/2009 03/31/2009 Variation 06/ 30/2008 Variation

Net Debt / Adjusted EBITDA (last 12 months) 1.2 1.5 -20.0% 2.6 -53.8%

Net Debt / Shareholders Equity 37.2% 49.8% -12.6 p.p 72.0% -34.8 p.p

Indebtedness / Total Assets 30.8% 36.0% -5.2 p.p 44.3% -13.5 p.p

At the end of the 1H09, the company’s gross debt totaled R$719.6 million (54.8% in short term and 45.2% in long term), 33.1% lower than at the end of the 1H08, while net debt amounted to R$514.4 million , 38.0% lower than in the 1H08, chiefly due to the amortization of Vitarella’s acquisition. Our financial leverage, represented by the net debt / net equity ratio , came to 37.2% at the end of 1H09, versus 72.0% at the end of the 1H08. M Dias Branco ended 1H09 with a net cash position (cash balances plus investments in marketable securities) of R$205.2 million , versus R$247.3 million in the 1H08, a decline of 17.0% in the period, due to the redemption of investments to pay for the acquisition of Vitarella and the payment anticipation of input imports to reduce our foreign currency exposure.

* Interest tax on June 30, 2009, except when specified another date.

DEBT, CAPITALIZATION AND CASH

Consolidated Debt (R$ million) Index Interest (year) 06/30/2009 Variation 06/30/2008 Variation AH% Variation

Domestic Currency: 518.3 72.0% 708.4 65.8% -26.8%FINAME TJLP 3.03% (3.47% on 06/30/08) 27.6 3.8% 28.2 2.6% -2.1%

BNDES - Financings TJLP 2.49% 0.1 0.0% 18.9 1.8% -99.5%

(PROADI-GMP) Financing of state taxes TR - 0.0 0.0% 0.0 0.0% 0.0%

(PROVIN-MOINHO) Financing of state taxes TJLP - 20.0 2.8% 23.1 2.1% -13.4%

(DESENVOLVE) Financing of state taxes TJLP - 3.0 0.4% 3.9 0.4% -23.1%

BNB-FNE - Financings 10.0% 100.7 14.0% 120.4 11.2% -16.4%

BNDES - MODERMAQ 12.03% (12.09% on 06/30/08) 0.5 0.1% 1.1 0.1% -54.5%

BNDES - MODERMAQ TJLP 1.04% (1.05% on 06/30/08) 4.4 0.6% 5.0 0.5% -12.0%

BNB - FNE - Working Capital Financings 10.0% 3.8 0.5% 5.6 0.5% -32.1%

EGF Financing – Commodities 6.75% 8.2 1.1% 10.1 0.9% -18.8%

Investment of assigment of Vitarella's shares CDI - 100% - 350.0 48.6% 492.1 45.7% 100.0%

Foreign Currency: 201.3 28.0% 368.0 34.2% -45.3%

Imports financing USD 4.8% (5.3% on 06/30/08) 201.0 27.9% 365.7 34.0% -45.0%

Machinery USD Libor + 1.0% (Libor + 1.08% on 06/30/08) 0.3 0.0% 2.1 0.2% -85.7%

Machinery EURO Eurolibor +1.75% on 06/30/08 0.0 0.0% 0.2 0.0% -100.0%

TOTAL 719.6 100.0% 1076.4 100.0% -33.2%

Consolidated Debt (R$ million) Index Interest (year) 06/30/2009 Variation 06/30/2008 Variation AH% Variation

Domestic Currency: 518.3 72.0% 708.4 65.8% -26.8%FINAME TJLP 3.03% (3.47% on 06/30/08) 27.6 3.8% 28.2 2.6% -2.1%

BNDES - Financings TJLP 2.49% 0.1 0.0% 18.9 1.8% -99.5%

(PROADI-GMP) Financing of state taxes TR - 0.0 0.0% 0.0 0.0% 0.0%

(PROVIN-MOINHO) Financing of state taxes TJLP - 20.0 2.8% 23.1 2.1% -13.4%

(DESENVOLVE) Financing of state taxes TJLP - 3.0 0.4% 3.9 0.4% -23.1%

BNB-FNE - Financings 10.0% 100.7 14.0% 120.4 11.2% -16.4%

BNDES - MODERMAQ 12.03% (12.09% on 06/30/08) 0.5 0.1% 1.1 0.1% -54.5%

BNDES - MODERMAQ TJLP 1.04% (1.05% on 06/30/08) 4.4 0.6% 5.0 0.5% -12.0%

BNB - FNE - Working Capital Financings 10.0% 3.8 0.5% 5.6 0.5% -32.1%

EGF Financing – Commodities 6.75% 8.2 1.1% 10.1 0.9% -18.8%

Investment of assigment of Vitarella's shares CDI - 100% - 350.0 48.6% 492.1 45.7% 100.0%

Foreign Currency: 201.3 28.0% 368.0 34.2% -45.3%

Imports financing USD 4.8% (5.3% on 06/30/08) 201.0 27.9% 365.7 34.0% -45.0%

Machinery USD Libor + 1.0% (Libor + 1.08% on 06/30/08) 0.3 0.0% 2.1 0.2% -85.7%

Machinery EURO Eurolibor +1.75% on 06/30/08 0.0 0.0% 0.2 0.0% -100.0%

TOTAL 719.6 100.0% 1076.4 100.0% -33.2%

of 24

The company opts not to hedge the price of its main inputs because we monitor the market, plan our purchases and rely on large storage capacity. We have liabilities linked to foreign currency (mainly in U.S. dollar), especially resulting from importing wheat and vegetable oils, which are protected through financial investments linked to US dollar, as shown below. The decrease in dollar-denominated liabilities was due to the financing reduction to purchase raw materials and the payment anticipation of foreign currency financing, contributing to decline company’s foreign currency exposure. Investments totaled R$39.6 million in the 1H09, versus R$31.4 million in the 1H08. The main items of capital expenditures were (i) machinery and equipment (acquisition of new machinery to produce wheat flour in our GMT (Grande Moinho Tambaú) unit and to produce cookies and crackers in our GMA (Grande Moinho Aratu) unit, acquisition of silos to wheat flour storage and acquisition of new packaging equipment to Vitarella); (ii) construction in progress (expansion of our unit in Bento Gonçalves, and the construction of silos to wheat storage and a building to package storage in Vitarella), and (iii) chattel and tools (modernization of the warehousing system at the São Caetano do Sul unit and in the Grande Moinho Aratu unit).

Company intends to invest R$63.0 million on the expansion of its production capacity and improve its production efficiency. It was already paid 11.5% of these investments and the rest will be paid until the end of June, 2010. These investments are divided on: (i) setup of a new milling in our GMT unit, increasing its production capacity from 380 tonnes per day to 880 tonnes per day; (ii) duplication of our oil refinery at GME unit, which will increase its production capacity from 220 tonnes per day to 520 tonnes per day; (iii) acquisition of new cookies and crackers production lines to our GMA and Vitarella units; and (iv) acquisition of new pasta production lines to our GMA unit (instant noodles), Isabela unit (replacement of old machinery) and Adria unit (replacement of old machinery).

CAPEX

Description 06/30/2009 06/30/2008

Assets (USD million) 48.4 62.4

Liabilities (USD million) 103.1 231.2

BALANCE -54.7 -168.8

Description 06/30/2009 06/30/2008



BALANCE -54.7 -168.8

Description 06/30/2009 06/30/2008



BALANCE -54.7 -168.8

Description 06/30/2009 06/30/2008



BALANCE -54.7 -168.8

Investments (R$ Million) 2Q09 2Q08 Variation 1H09 1H08 Va riation

Buildings 0.3 0.3 0.0% 0.9 1.0 -10.0%

Machinery and equipment 4.4 6.5 -32.3% 21.0 12.7 65.4%

Construction in progress 4.0 4.5 -11.1% 8.7 7.1 22.5%

Vehicles 0.3 0.9 -66.7% 1.6 1.1 45.5%

IT Equipament 0.3 0.8 -62.5% 0.4 1.1 -63.6%

Furniture and Fixtures 3.6 2.5 44.0% 5.6 2.7 107.4%

Others 0.3 5.2 -94.2% 1.4 5.7 -75.4%

Total 13.2 20.7 -36.2% 39.6 31.4 26.1%


Buildings 0.3 0.3 0.0% 0.9 1.0 -10.0%



Vehicles 0.3 0.9 -66.7% 1.6 1.1 45.5%

IT Equipament 0.3 0.8 -62.5% 0.4 1.1 -63.6%


Others 0.3 5.2 -94.2% 1.4 5.7 -75.4%

Total 13.2 20.7 -36.2% 39.6 31.4 26.1%


Buildings 0.3 0.3 0.0% 0.9 1.0 -10.0%



Vehicles 0.3 0.9 -66.7% 1.6 1.1 45.5%

IT Equipament 0.3 0.8 -62.5% 0.4 1.1 -63.6%


Others 0.3 5.2 -94.2% 1.4 5.7 -75.4%

Total 13.2 20.7 -36.2% 39.6 31.4 26.1%


Buildings 0.3 0.3 0.0% 0.9 1.0 -10.0%



Vehicles 0.3 0.9 -66.7% 1.6 1.1 45.5%

IT Equipament 0.3 0.8 -62.5% 0.4 1.1 -63.6%


Others 0.3 5.2 -94.2% 1.4 5.7 -75.4%

Total 13.2 20.7 -36.2% 39.6 31.4 26.1%

of 24

The Company’s shares performance among the period of June 30, 2008 and July 31, 2009 is showed in the graph below. On July 31, 2009, MDIA3 shares were priced at R$31.50, representing a market cap of R$3.57 billion . Average daily trading volume in this period stood at R$1,456 million . Ibovespa index came to 54,766 points while the Special Governance Stock Index (IGC) stood at 5,358 points. The graph below shows the performance of the MDIA3 share compared to the Ibovespa and the IGC indexes in the period between the end of the 1Q09 and July 31, 2009. Note that MDIA3 outperformed the IBOVESPA by 31.5% and the IGC by 26.5% at the end of the analyzed period.

CAPITAL MARKET

-50%

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Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb -09 Mar-09 Apr-09 May-09 Jun-09 Jul-09

06/30/2008 a 07/31/2009

MDIA3 X IBOV X IGC

Average Daily Volume: MDIA3

MDIA3 X IBOV X IGC

Profiability (%)

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MDIA3 X IBOV X IGC


MDIA3 X IBOV X IGC

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MDIA3 X IBOV X IGC


MDIA3 X IBOV X IGC

Profiability (%)

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06/30/2008 a 07/31/2009

MDIA3 X IBOV X IGC


MDIA3 X IBOV X IGC

Profiability (%)

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06/30/2008 a 07/31/2009

MDIA3 X IBOV X IGC


MDIA3 X IBOV X IGC

Profiability (%)

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4/1/09 4/16/09 5/1/09 5/16/09 5/31/09 6/15/09 6/30/09 7/15/09

MDIA3 / IBOV MDIA3 / IGC

MDIA3 SHARE PERFORMANCE TO IBOVESPA AND IGC INDEXES04/01/2009 a 07/31/2009

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4/1/09 4/16/09 5/1/09 5/16/09 5/31/09 6/15/09 6/30/09 7/15/09



of 24

In the Board of Directors Meeting, held on May 04, 2009, it was unanimously approved (i) re-election of the Company’s estatute board to a three years mandate; (ii) quarterly financial information to the period ended at March 31, 2009; (iii) Election of the Audit Committee members. Also, the Investments and Controlling Vice-President, Mr. Geraldo Luciano Mattos Júnior, was re-elected as the Investor Relations Officer, according to the current legislation. We inform that until the end of the second quarter, Company acquired in the stock market the amount of 45,000 (forty five thousand) common shares at market price. 1. Conference Call – 2Q09 Results

Date: August 11, 2009 Portuguese: 09:00 am (US EST) Phone: +55 (11) 4688-6361 Code: M. Dias

Replay: +55 (11) 4688-6312 Code: 727

Live webcast: http://www.mdiasbranco.com.br/ri English: 11:00 am (US EST) Phone: +55 (11) 4688-6361

+1 888 700 0802 (USA) +1 786 924 6977 (other countries)

Code: M Dias Replay: +55 (11) 4688-6312

Code: 253 Live webcast: http://www.mdiasbranco.com.br/ir

About M Dias Branco

M. Dias Branco S.A., operating since the 1940s, is leader in the production of cookies and crackers and pasta, and also has activities in the wheat grinding, oil refining, vegetable shortenings, margarines and vegetable cream segments. Its brands are a hallmark of tradition and quality, forming a bond of confidence and respect with the consumer. Legal Notice The statements contained in this document related to business prospects, projected operating and financial results and the growth outlook of M Dias Branco are merely forecasts and, as such, are based exclusively on the expectations of management on the future of the businesses. These expectations depend, substantially, on changes in market conditions, on the performance of the Brazilian economy, of the sector and of the international markets and, therefore, are subject to changes without prior notice.

MAIN ADMINISTRATIVE FACTS

2Q09 CONFERENCE CALL

of 24

Glossary of ANNEXES

1) Pro-forma Income Statements: in this statement, we added Vitarella’s 1Q08 figures to the 1H08 Company’s results.

2) Historical Income Statements: prepared according to the Company’s accounting figures, including the modifications in accounting practices introduced by the Law 11.638/07, Law 11,941/09 and by the Accounting Announcements Committee – known as CPC – approved by the Brazilian SEC (CVM). Vitarella’s figures were considered only after it was effectively acquired by the subsidiary Adria on April 7, 2008.

3) Historical Balance Sheet: prepared according to the Company’s accounting figures, including the

modifications in accounting practices introduced by the Law 11.638/07, Law 11,941/09 and by the Accounting Announcements Committee – known as CPC – approved by the Brazilian SEC (CVM)

4) Historical cash flow statements: prepared according to accounting figures, showing the effects of the acquisition of Vitarella in the 2Q08.

ANNEXES

of 24

ANNEX 1

INCOME STATEMENT - PROFORMA

(R$ million) REVENUES 705.2 726.7 -3.0% 1400.8 1.379.8 1.5%

Sales of goods 705.2 726.7 -3.0% 1400.8 1.379.8 1.5%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -305.1 -23.4%


NET REVENUES 596.4 568.1 5.0% 1167.2 1.074.7 8.6%

COST OF GOODS SOLD -337.7 -349.0 -3.2% -667.8 -672.8 -0.7%

GROSS PROFIT 258.7 219.1 18.1% 499.4 401.9 24.3%

OPERATING EXPENSES -147.7 -135.6 8.9% -283.9 -255.1 11.3%

Selling expenses -115.4 -93.9 22.9% -220.0 -178.6 23.1%

Administrative and general expenses -25.1 -27.4 -8.4% -47.6 -47.0 1.4%

Management fees -1.7 -1.6 6.3% -3.2 -4.1 -18.6%

Taxes -3.2 -2.8 14.3% -7.0 -6.7 4.0%

Depreciation and Amortization -4.7 -10.1 -53.5% -9.6 -20.4 -52.9%

Other operating expenses 2.4 0.2 1100.0% 3.5 1.6 116.5%

OPERATING INCOME - before Financial Results 111.0 83. 5 32.9% 215.5 146.8 46.8%

Financial income 55.5 40.4 37.4% 82.9 83.8 -1.1%

Financial expenses -43.7 -41.1 6.3% -83.9 -82.5 1.7%

OPERATING INCOME - after Financial Results 122.8 82.8 48.3% 214.5 148.1 44.8%

Other revenues (expenses) 0.4 2.0 -80.0% 0.8 3.9 -79.3%

INCOME - before income and social contribution taxe s 123.2 84.8 45.3% 215.3 152.0 41.7%

Income and social contribution taxes -19.85 -12.7 56.3% -34.0 -19.3 76.2%

INCOME (LOSS) BEFORE MINORITY PARTICIPATION 103.4 72. 1 43.3% 181.3 132.7 36.7%

Minority participation 0.0 0.0 0.0% 0.0 0.0 0.0%

NET INCOME 103.4 72.1 43.3% 181.3 132.7 36.7%

1H08 Variation2Q09 2Q08 Variation 1H09INCOME STATEMENT - PROFORMA


Sales of goods 705.2 726.7 -3.0% 1400.8 1.379.8 1.5%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -305.1 -23.4%


NET REVENUES 596.4 568.1 5.0% 1167.2 1.074.7 8.6%


GROSS PROFIT 258.7 219.1 18.1% 499.4 401.9 24.3%




Management fees -1.7 -1.6 6.3% -3.2 -4.1 -18.6%

Taxes -3.2 -2.8 14.3% -7.0 -6.7 4.0%












NET INCOME 103.4 72.1 43.3% 181.3 132.7 36.7%

1H08 Variation2Q09 2Q08 Variation 1H09INCOME STATEMENT - PROFORMA


Sales of goods 705.2 726.7 -3.0% 1400.8 1.379.8 1.5%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -305.1 -23.4%


NET REVENUES 596.4 568.1 5.0% 1167.2 1.074.7 8.6%


GROSS PROFIT 258.7 219.1 18.1% 499.4 401.9 24.3%




Management fees -1.7 -1.6 6.3% -3.2 -4.1 -18.6%

Taxes -3.2 -2.8 14.3% -7.0 -6.7 4.0%












NET INCOME 103.4 72.1 43.3% 181.3 132.7 36.7%

1H08 Variation2Q09 2Q08 Variation 1H09

of 24

ANNEX 2

INCOME STATEMENT - HISTORICAL DATA


Sales of goods 705.2 726.7 -3.0% 1400.8 1.274.0 10.0%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -286.9 -18.6%


NET REVENUES 596.4 568.1 5.0% 1167.2 987.1 18.2%

COST OF GOODS SOLD -337.7 -349.0 -3.2% -667.8 -613.9 8.8%

GROSS PROFIT 258.7 219.1 18.1% 499.4 373.2 33.8%




Management fees -1.7 -1.6 6.3% -3.2 -3.1 6.5%

Taxes -3.2 -2.8 14.3% -7.0 -6.4 9.4%




Financial income 55.5 40.4 37.4% 82.9 79.8 3.9%








NET INCOME 103.4 72.1 43.4% 181.3 119.9 51.2%

2Q09 1H08 Variation 2Q08 Variation 1H09INCOME STATEMENT - HISTORICAL DATA


Sales of goods 705.2 726.7 -3.0% 1400.8 1.274.0 10.0%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -286.9 -18.6%


NET REVENUES 596.4 568.1 5.0% 1167.2 987.1 18.2%


GROSS PROFIT 258.7 219.1 18.1% 499.4 373.2 33.8%




Management fees -1.7 -1.6 6.3% -3.2 -3.1 6.5%

Taxes -3.2 -2.8 14.3% -7.0 -6.4 9.4%












NET INCOME 103.4 72.1 43.4% 181.3 119.9 51.2%



Sales of goods 705.2 726.7 -3.0% 1400.8 1.274.0 10.0%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -286.9 -18.6%


NET REVENUES 596.4 568.1 5.0% 1167.2 987.1 18.2%


GROSS PROFIT 258.7 219.1 18.1% 499.4 373.2 33.8%




Management fees -1.7 -1.6 6.3% -3.2 -3.1 6.5%

Taxes -3.2 -2.8 14.3% -7.0 -6.4 9.4%












NET INCOME 103.4 72.1 43.4% 181.3 119.9 51.2%



Sales of goods 705.2 726.7 -3.0% 1400.8 1.274.0 10.0%

DEDUCTIONS -108.8 -158.6 -31.4% -233.6 -286.9 -18.6%


NET REVENUES 596.4 568.1 5.0% 1167.2 987.1 18.2%


GROSS PROFIT 258.7 219.1 18.1% 499.4 373.2 33.8%




Management fees -1.7 -1.6 6.3% -3.2 -3.1 6.5%

Taxes -3.2 -2.8 14.3% -7.0 -6.4 9.4%












NET INCOME 103.4 72.1 43.4% 181.3 119.9 51.2%

2Q09 1H08 Variation 2Q08 Variation 1H09

of 24

ANNEX 3

BALANCE SHEET - HISTORICAL DATA

(R$ million) 06/30/2009 06/30/2008 VariationASSETS

CURRENT 745.7 841.7 -11.4%

Funds 105.1 149.7 -29.8%

Marketable Securities 0.8 1.6 -50.0%

Trade accounts receivable 264.1 226.7 16.5%

Inventories 265.3 393.0 -32.5%

Taxes recoverable 75.2 56.9 32.2%

Deferred income and social contribution taxes 4.9 0.2 2350.0%

Advances to suppliers 21.2 4.4 381.8%

Other accounts receivable 7.2 6.1 18.0%

Prepaid expenses 1.9 3.1 -38.7%

NONCURRENT 150.7 146.9 2.6%

Marketable Securities 93.4 90.8 2.9%

Short-term investments 5.9 5.2 13.5%

Judicial deposits 23.1 18.9 22.2%

Taxes recoverable 8.8 15.5 -43.2%


Tax incentives / other accounts receivable 6.4 5.2 23.1%

Investments 0.1 0.1 0.0%

Property, plant and equipments 857.5 794.0 8.0%

Intangible 557.8 615.3 -9.3%

Deferred charges 20.8 32.0 -35.0%

TOTAL ASSETS 2332.6 2430.0 -4.0%

LIABILITIES AND SHAREHOLDERS EQUITY

CURRENT 579.8 792.3 -26.8%

Suppliers 57.7 43.8 31.7%

Financing with financial institutions 258.6 451.3 -42.7%

Direct financing 135.5 179.6 -24.6%

Labor and social charges payable 55.5 44.4 25.0%

Taxes and contribution payable 48.5 43.0 12.8%

Advances 1.6 0.5 220.0%

Other accounts payable 12.9 7.4 74.3%

Dividends payable 0.0 0.0 0.0%

Government Grant 9.4 22.3 -57.4%

NONCURRENT LIABILITIES 369.7 486.7 -24.0%



Taxes and contribution payable 6.7 8.1 -17.3%

Accounts payable 1.5 0.7 114.3%

Provision for contingencies 36.1 32.4 11.4%

SHAREHOLDERS EQUITY 1383.1 1151.0 20.2%

Capital 725.6 725.6 0.0%

Capital reserves 126.4 128.0 -1.3%

Equity valuation adjustments -4.0 -0.1 3900.0%

Profit reserves 355.0 19.6 1711.2%

(-) Treasury shares -1.2 -25.7 -95.3%

Accrued profit 181.3 303.6 -40.3%

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 2332.6 2430 .0 -4.0%

M. DIAS (CONSOLIDATED)BALANCE SHEET - HISTORICAL DATA


CURRENT 745.7 841.7 -11.4%

Funds 105.1 149.7 -29.8%



Inventories 265.3 393.0 -32.5%






NONCURRENT 150.7 146.9 2.6%









Intangible 557.8 615.3 -9.3%


TOTAL ASSETS 2332.6 2430.0 -4.0%


CURRENT 579.8 792.3 -26.8%

Suppliers 57.7 43.8 31.7%





Advances 1.6 0.5 220.0%











Capital 725.6 725.6 0.0%




(-) Treasury shares -1.2 -25.7 -95.3%

Accrued profit 181.3 303.6 -40.3%




CURRENT 745.7 841.7 -11.4%

Funds 105.1 149.7 -29.8%



Inventories 265.3 393.0 -32.5%






NONCURRENT 150.7 146.9 2.6%









Intangible 557.8 615.3 -9.3%


TOTAL ASSETS 2332.6 2430.0 -4.0%


CURRENT 579.8 792.3 -26.8%

Suppliers 57.7 43.8 31.7%





Advances 1.6 0.5 220.0%











Capital 725.6 725.6 0.0%




(-) Treasury shares -1.2 -25.7 -95.3%

Accrued profit 181.3 303.6 -40.3%




CURRENT 745.7 841.7 -11.4%

Funds 105.1 149.7 -29.8%



Inventories 265.3 393.0 -32.5%






NONCURRENT 150.7 146.9 2.6%









Intangible 557.8 615.3 -9.3%


TOTAL ASSETS 2332.6 2430.0 -4.0%


CURRENT 579.8 792.3 -26.8%

Suppliers 57.7 43.8 31.7%





Advances 1.6 0.5 220.0%











Capital 725.6 725.6 0.0%




(-) Treasury shares -1.2 -25.7 -95.3%

Accrued profit 181.3 303.6 -40.3%




CURRENT 745.7 841.7 -11.4%

Funds 105.1 149.7 -29.8%



Inventories 265.3 393.0 -32.5%






NONCURRENT 150.7 146.9 2.6%









Intangible 557.8 615.3 -9.3%


TOTAL ASSETS 2332.6 2430.0 -4.0%


CURRENT 579.8 792.3 -26.8%

Suppliers 57.7 43.8 31.7%





Advances 1.6 0.5 220.0%











Capital 725.6 725.6 0.0%




(-) Treasury shares -1.2 -25.7 -95.3%

Accrued profit 181.3 303.6 -40.3%


M. DIAS (CONSOLIDATED)

of 24

ANNEX 4

CASH FLOW - HISTORICAL DATA

(R$ million)CASH FLOW FROM OPERATING ACTIVITIES

Net Income before income and social contribution ta xes 123.2 84.9 45.1% 215.3 136.8 57.4%

Adjustments to Reconcile net income

and cash from operating activities:

Depreciation and amortization 14.5 24.2 -40.1% 29.2 46.8 -37.6%

Sale cost of permanet assets 0.0 0.8 -100.0% 0.4 1.0 -60.0%

Loans update -33.2 -10.9 204.6% -17.3 -6.1 183.6%

Interests and exchange variation -56.4 -11.9 373.9% -94.1 -17.7 431.6%

Net income and social contribution taxes -20.8 -13.5 54.1% -32.8 -23.6 39.0%

Liberation of reivestments incentives 0.0 0.0 0.0% 0.0 1.7 -100.0%

Assets and Liabilities Variations

(Increase) decrease in clients -9.4 -11.2 -16.1% -39.7 -23.2 71.1%

(Increase) decrease in inventories 39.5 -13.2 -399.2% 5.8 -92.1 -106.3%

(Increase) decrease in marketable securities 23.4 25.0 -6.4% 28.9 67.9 -57.4%

(Increase) decrease in recoverable 22.3 3.3 575.8% 27.0 4.2 542.9%

(Increase) decrease in accounts receivable -11.1 1.9 -684.2% -25.5 -4.8 431.3%

(Increase) decrease in suppliers 0.5 1.7 - 5.7 -1.5 -

(Increase) decrease in taxes and contributions payable -2.2 -5.3 -58.5% 11.2 4.0 180.0%

Increase (decrease) in Government grants -0.5 1.7 -129.4% -0.3 17.3 -101.7%

(Increase) decrease in other accounts payable / provisions 19.6 -143.2 - 17.5 -137.7 -

Net Cash generated in operating activities 109.4 -65.7 -266.5% 131.3 -27.0 -586.3%

CASH FLOW FROM INVESTMENTS ACTIVITIES

Acquisition of property, plant and equipment -13.5 -21.0 -36.0% -40.1 -32.0 25.3%

Cash flow from subsidiary acquisition 0.0 -149.6 100.0% -58.8 -149.6 100.0%

Purchase of own shares -1.2 0.0 0.0% -1.2 -3.0 -60.0%

Net Cash used in Investment Activities -14.7 4.3 -91.4% -100.1 -184.6 -45.8%

CASH FLOW FROM FINANCING ACTIVITIES

Dividends Payments -31.3 -30.5 2.6% -31.3 -30.5 2.6%

New Loans 75.0 188.5 -60.2% 173.4 334.6 -48.2%

Loan Principal payments -125.7 -153.7 -18.2% -217.1 -200.4 8.3%

Income earned on hedge contract 0.0 0.0 100.0% 56.3 0.0 100.0%

Net Cash used in Financing Activities -82.0 4.3 -2007.0% -18.7 103.7 -118.0%

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 12. 7 -232.1 - 12.5 -109.7 -

At begin of period 92.4 381.8 -75.8% 92.6 257.6 -64.1%

At end of period 105.1 149.7 -29.8% 105.1 149.7 -29.8%


1H09 1H08 VariationVariation2Q09 2Q08CASH FLOW - HISTORICAL DATA







Loans update -33.2 -10.9 204.6% -17.3 -6.1 183.6%






















New Loans 75.0 188.5 -60.2% 173.4 334.6 -48.2%






At end of period 105.1 149.7 -29.8% 105.1 149.7 -29.8%









Loans update -33.2 -10.9 204.6% -17.3 -6.1 183.6%






















New Loans 75.0 188.5 -60.2% 173.4 334.6 -48.2%






At end of period 105.1 149.7 -29.8% 105.1 149.7 -29.8%









Loans update -33.2 -10.9 204.6% -17.3 -6.1 183.6%






















New Loans 75.0 188.5 -60.2% 173.4 334.6 -48.2%






At end of period 105.1 149.7 -29.8% 105.1 149.7 -29.8%


1H09 1H08 VariationVariation2Q09 2Q08

2q09 earnings release highlights -...

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