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Earnings Release Q2’12

Vigor Alimentos S.A.

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Disclaimer

This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating

and financial results, and those related to growth prospects of Vigor Alimentos. These are merely projections and, as such,

are based exclusively on the expectations of Vigor’s management concerning the future of the business and its continued

access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on

changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy

and the industry, among other factors and risks disclosed in Vigor’s filed disclosure documents and are, therefore, subject

to change without prior notice.

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Summary

Vigor Alimentos

Results

What we have done and our next steps

Our Vision

Agenda

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EBITDA in 1H12 is equivalent to full FY 2011

EBITDA

R$18.6 million in 2Q12, +125% yoy

R$43.4 million in 1H12 +148% yoy

Net Revenue

R$324.2 million in 2Q12 (+9.8%) yoy

+9.0% yoy in 1H12 to R$638.4 million

Better mix with reduction in UHT milk participation (-23.2%yoy) and growth of Cheese and Requeijões (+16.5%)

and Spreads (+25.3%) categories

Diversified product porfolio and presence in 2 segments show the resilience of business model

Consumer (+6.4%) and Food (+21.8%) vs. Nielsen Consumer Basket1(+0.4%) vs. Perishable Basket (-0.5%)

Highlights

1 Volume, value and price variation – LTM ended April 2012 – Total Brazil, basis: 137 product categories – Total Brazil

Source: Nielsen | Retail Index

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EBITDA in 1H12 is equivalent to full FY 2011

Highlights

Volume

+12.3% yoy in Q2’12 yoy (net of UHT milk)

+12,6% in 1H12 yoy (net of UHT milk)

Gross Margin

Gross Profit +26.0% in Q2’12 yoy to R$92,1 million (Gross Margin +3.7 p.p. to 28.4%)

+21.8% in 1H12 yoy to R$182.4 million (Gross Margin +3.0 p.p. to 28.4%)

Cash Generation

Cash Flow from Operations1 in 1H12 (R$ 28.4 million) was higher than Capex

Adjusted Net Debt 2 in june, 30 2012 amounted R$10.9 million

Notes:

1. Includes interests from Refis (tax installments) of R$9.5 million

2. Includes the net result from the FX swap (R$31.6 million) hedge USD denominated debt

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Total: R$ 638.4 million

Net Revenue – 1H12

Our product categories

Diversified product categories with high

value-added products

Yogurts

High Margins (%);

Seasonality in Q3 and Q4;

Focus in innovation and product launching

Cheese and Requeijões

Leader brands in categories;

High Margins in R$;

Spreads

High household penetration level;

Helps diversify the cost matrix;

Possible to add “brand” equity

UHT Milk

Low volume;

Margin under severe discipline

Creams and Others

Focus on Food Service segment;

Yogurts 22%

Cheese and Requeijões

26%

Spreads 28%

UHT Milk 8%

Creams and others 13%

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Consumo Food Service

...underpinned by our brands and market segments

A / B / C

National Brand

B / C

Regional

Brand

A / B

National Brand

A / B

National Brand

A / B

National Brand

Yogurt /

Cheese

spread

UHT milk

Butter

Chocolate

milk

Non-sweet

products

Pastry and

basic

ingredients

Parmesan

cheese Cheese /

Dessert

Special

cheese

Business to

Business Segmentation

Main produtos

Reference brands on the consumer segment, and leadership in Food Service

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178,940

181,556

1H11 1H12

295,398

324,233

2Q11 2Q12

585,694

638,409

1H11 1H12

87,111

90,126

2Q11 2Q12

Volume Sold (Ton) Net Revenue (R$ ‘000)

+ 9.8% yoy Revenue growth mirros the change in product mix to more value-added products

Performance

3.5% 1.5% 9.8.% 9.0%

12,3%

Volume sold net of UHT

75,049

66,803

2T122T11

Volume Sold - tonnes 2Q11 2Q12 ∆ % 1H11 1H12 ∆ %

Yogurt 19,145 18,892 -1.3% 42,617 40,901 -4.0%

Cheese and Requeijões 5,664 6,397 12.9% 11,349 12,578 10.8%

Spreads 28,414 35,684 25.6% 54,345 70,101 29.0%

UHT Milk 20,307 15,077 -25.8% 44,068 29,628 -32.8%

Creams and Others 13,581 14,077 3.7% 26,562 28,348 6.7%

Total 87,111 90,126 3.5% 178,940 181,556 1.5%

Net revenues - R$ '000 2Q11 2Q12 ∆ % 1H11 1H12 ∆ %

Yogurt 63,621 67,069 5.4% 135,650 143,096 5.5%

Cheese and Requeijões 73,599 85,720 16.5% 141,769 165,523 16.8%

Spreads 81,863 102,556 25.3% 155,933 195,027 25.1%

UHT Milk 33,409 25,665 -23.2% 70,147 49,696 -29.2%

Creams and Others 42,907 43,223 0.7% 82,195 85,067 3.5%

Total 295,398 324,233 9.8% 585,694 638,409 9.0%

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17.741

43.442

3,0%

6,8%

1H11 1H12

8,280

18,589

2.8%

5.7%

2Q11 2Q12

149,715

182,393

25.6%

28.6%

1H11 1H12

73,052

92,056

24.7%

28.4%

2Q11 2Q12

Gross Profit (R$ ‘000); Gross Margin(%) EBITDA (R$ ‘000); EBITDA Margin(%)

EBITDA Margin growth reflects increase in Gross Margin

Increase in EBITDA Margin of 3.8p.p. (6M12)

+3,0 p.p. Gross Margin

+0.8 p.p. SG&A

Performance

26%

21.8%

124.5% 168.8%

Δ=3,7p.p

Δ=3,0p.p

Δ=2,9p.p

Δ=3,8p.p

Gross Profit - R$ '000 2Q11 2Q12 ∆ % 1H11 1H12 ∆ %

Yogurt 23,584 28,250 19.8% 50,902 61,230 20.3%

Cheese and Requeijões 18,538 20,592 11.1% 36,485 38,575 5.7%

Spreads 11,313 19,806 75.1% 22,207 37,056 66.9%

UHT Milk 3,831 5,444 42.1% 8,874 9,740 9.8%

Creams and Others 15,787 17,964 13.8% 31,247 35,791 14.5%

Total 73,053 92,056 26.0% 149,715 182,393 21.8%

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50.6

203.8

254.4

31.6

211.9

10.9

Short Term Long Term Total Debt Swap Cash Adjusted Net Debt

Line Average Rate Due to Balance

BNDES 11.44% 16/11/12 42,0

FCO 10% 02/05/14 1,6

Finame 8,7% 15/07/16 1,3

BOND 4 FX + 10,25% 24/08/12 209,4

Total Debt 254,4

Net Debt (06/30/2012) – R$ Million

Cash Flow from Operations1 supported Capex

Cash Generation and Leverage

1.Includes interests from Refis (tax installments) of R$ 9.5 million

2.Net result from the FX swap to hedge the USD denominated debt [Notes 2017 (U.S.$ 100,000,000 9.25% Step-up Notes due 2017)]

3. Includes the net result from the FX Swap to hedge the USD denominated debt (R$31.6 million)

4. Debt denominated in USD with swap to hedge FX variation

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Cash Flow in 1H12 – R$ Million

321.7

28.4 28.0

110.2

211.9

Cash Dez/11 Cash flow from

operations

Capex Cash flow used in

financing

Cash Jun/12 3

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What we have done, and our next steps

• Innovation and new product launching

•New media campaign

•New marketing communication aligned with new product positioning and pricing

Strengthening of key brands

•Review of our go-to-market model

•Merchandising with dedicated team Growth of distribution

network

•Meritocracy in management, with systematic KPI’s tracking

•With relevant know-how and external experience

•Majority of Board of Directors members are independent

Excellence in Management and

Corporate Governance

•Product-specific Factories

•Capex in high potential growth categories

•Milk producers fidelity program

State of art in Production processes

• Shutdown of product lines not aligned with

Company’s strategy

• Increase of innovation in our portfolio

• Beginning of our geographic expansion to raise our

presence in areas close to our core market

• Continue to insulate São Paulo market

• Keep investing in our people’s development;

• People , and Finance and Risk Committees;

• Quality Certification guaranteed in every factory;

Iniciatives already implemented… …and thers to come

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Our Vision

• Development of innovation according to seasonal waves

• Further development of Food Service segment Categories and Segments

• Improve our presence in markets close to core market (SP)

• Lower the company’s dependence of São Paulo market; Geographic expansion

• Increase in productive capacity, with investments c.R$500 miilion in the next years; Investment Plan

• Continuously increase in margins to surpass historic levels EBITDA Margin

• Increase stock liquidity

• Reduction of cost of capital

• Return on Invested Capital tor shareholders Policy Capital Structure

Big food Company, one of the biggest dairy companies in Brazil

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THANK YOU! Our Contact Details

Web: www.vigor.com.br/ir

E-mail: ri@vigor.com.br

Tel.: +(55 11) 2799-5807