Being recorded and that all participants will be connected in listen-only mode. Floor will then be open for questions when further instructions will be provided. Should you need any assistance during the call, please press star zero to reach the operator. Before we proceed, we'd like to clarify that any forward-looking statement made during this call with regard to the company's operational and financial targets are beliefs and premises of BRF's management, as well as information currently available to the company. These are not guarantee of performance. They involve risks, uncertainties, and assumptions, seeing as therefore depend on circumstances that may or may not materialize. Investors must understand that general economic conditions, the state of the industry, and other operating factors may affect BRF from those expressed in such forward-looking statements. I'd like to turn the conference over to Mr. Lorival Luz, who will begin the presentation. Mr. Luz, you may proceed. For being here with us in our earnings release for the second quarter of 2021. As you can see, this release is an attempt for us to make transparent and adequate to share. Start by talking to you and asking you to take a look at the company for this second quarter of 2021. I'd like to give you a little bit of context, and also ask everyone to think at these results the same way we are, the same way I am moving forward. We have grown as well as our adjusted EBITDA, as all of you can see in our presentation. You some of the context. This year, we had perhaps one of the most striking increases in costs we've ever seen. We saw an increase of nearly 100%, which is almost 100% of costs for corn, for example, which took them to a new level. We also saw a lot of inflation in our costs with packaging, maritime freight also converted into a nearly 70% increase. Worse environment from the standpoint of cost structure to any company. Your attention to everything that we have been doing and all that we have been talking about. This was a great effort in terms of efficiency and trade efforts. A fantastic and very efficient work in terms of logistics. Bringing greater efficiency. It is because that we did all of that, our gross result came to 12%. If we look at the same period last year, 1.7%. Yes, this is a decrease. Look at the inflation and the costs that we had to bear, in some cases, 50% or even 100%. All of this goes to show the management over all that we have control over. Scenario is there. We have to manage. What I like to say is, I am very pleased with the work that BRF has been doing to manage so that we're able to cope and grow our EBITDA and our gross margin. At the same time that we were able to minimize the impact on our margins, as all of you can see. I like to call your attention to and call you to think that had we not made all that we have done, where would we be right now? With these new levels and the headway that we are about to do, think of everything that we'll be able to deliver. Not only that, there's another absolutely important aspect that we have to talk about. We have been able to sustain our operational margins and our EBITDA margins, adjusting to these changes in our costs, but in a very efficient way, growing both our gross margin and our EBITDA margin in 12. This also goes to show in terms of our Vision 2030, the fact that we intend to be increasingly more a brand of value-added products, which will bring us increasingly further to a more stable level of margins as a company of products or high value-added products. If you look at this chart, what happened to the production index released by EMBRAPA. The increases we've had and the impact that BRF had to deal with. This shows all the effort that we've put into adjusting our sales price. We're still, and we still see room to move back to our prices considering the costs of our raw material. I'd like to invite you to look as corn prices increased and what happened to prices. They were able to adjust in good time. Something that hasn't occurred here in Brazil. Consumer product prices have not gone up the same way, but that's something that we are now considering what we planned, what we determined as a focus the best way possible. We want to serve them the best is better. We are also managing that so that increasing 90,000 active customers. This is something we focused on and really take care of, which is consumer sentiment brands and their preference for our brands as loyalty. Today, we have the two, Sadia with 27.8%, Perdigão with 15.3%, and Qualy with over 52% preference. In all categories, we see similar trends as well. This is something we want to have more and more so that we become increasingly more this convenience to all our consumers. Challenges ahead. The foundation and prices for four quarter cuts and whole chicken and pork carcass of these types of protein. That, as you can see, is nearly 12% more expensive in the case of four quarter and whole chicken and also pork carcass 9% higher. All of that in an economy that will continue and will rebound, this should continue after we overcome the COVID-19 pandemic, and this will bring more per capita sales in Brazil in the first quarter for chicken has gone over 45 kg per citizen. That of pork has also exceeded that. This shows and what the scenario has showed. We have also made headway and grown in foreign markets, going into new markets and inaugurating new plants. Overseas, we are bringing the same things that we have been working with here in Brazil, greater innovation, high value-added products, as well as growth and new product launches. A trend that we are already seeing in Japan. We have suffered with our inventories in the past few years as inventories were too high, and now they're going lower because of the hike in prices. The halal DDP market in Saudi Arabia as well. There we have an important operation in food services. Enjoying the rise in tourism, especially religious tourism, which is growing, and also Turkey, with a lot of growth in our exports. This is what I see as a very positive signal. Where prices are already going up compared to the trend we're seeing in Brazil. I think it's important to talk about how BRF released a 2.73 point leverage within what we committed to in terms of financial management that is at which is below 3 x. That commitment is something that pervades our decisions and practical decisions in terms of cuts that we may need to do. Always looking at our debt profile simultaneously. As you can see, the average maturity is high with 9.5 years. I'd like to call your attention to when it is, how much is maturing in 2021. BRL 489 million in 2021, BRL 2.1 billion in 2022. The company is at no risk and sees no challenge in terms of liquidity to continue investing the way it planned to. There's nothing in the way of us moving forward with our 2030 strategy. Has a lot more details, I'd like to continue talking about this. As you can see, our debt has been well managed, going down to BRL 14.7, obviously impacted by derivatives and also the financial cash, all of which has caused an impact because of the management of our bottom line and our hedge management, which has brought our debt to BRL 14,800. Obviously, this had an impact on our cash flow. Here we split and broke down what is our actual free cash flow, which is a result of everything that we had planned. There's nothing here that's different from what we had thought out and planned, even within our Vision 2030, with a financial and cash impact that is a result of the execution of our derivatives. Which, as I said, had an impact on our deadline as well. We have also taken a commitment in the next few months to become a net -zero company in greenhouse gas emissions. This is also something that pervades the entire company. It's very much in line to the attitude, the way we do everything that we do. We have done a lot, as you can see in this slide, a number of actual initiatives. Here, we're not just talking about financial investments or financial costs, but also in our attitude and in every decision that we make. There's more to come. Things that we will be communicating to you in the near term, things that we have already done, and initiatives that will show this commitment involving not only sustainability, inclusion and diversity. Very quickly, we have advanced in our partnerships. Veg&Tal and several advances there, as well as Mercado Sadia and Mercado em Casa, which has been extremely successful with our customers. We also have the store-in-store service, which now encompasses over 500 stores. Advance in pet food. Two acquisitions that we are very proud of, two fantastic companies regarding their products and human capital, and Mogiana. Both of them having approved Qualy. Mogiana is at the later stages of closing both of into a relevant market position with approximately 10% of the market share, remaining one of the three major players in share value. I'd like to call your attention once again to our strategy and the consistency of what we are doing. Always maintaining financial sustainability, always carrying out our strategic plan, moving forward despite the challenges, having productivity gains. You've noticed that cost scenario, we continue to deliver results in a scenario that perhaps had never. That shows the strides that we are making in terms of management. We'll have the basis to grow fashion. We are absolutely confident and like to close my presentation. I thank you all for your being here. Answer session. We are now going to start the Q&A session. We ask the remaining executives to join Mr. Lorival. To ask a question, please press star one. To remove it from the list, press star two. Our first question is from Isabella Simonato from Bank of America. Your line is open. You may go ahead. Thank you. Sorry. Unfortunately, due to some technical difficulties. If you can repeat that, I would, thank you very much. Can you hear me now? In the first 1, I have a little bit of echo. It's in terms of when we look at the breakdown in terms of revenue and volume, there was an increase category throughout the quarter and the increase in prices. Regarding as percentage of revenue for this semester. Now, Isabella Simonato, thank you very much for your question. It's very clear. As a segment. Talking about SG&A, looking at the context as a whole, and we are looking at that quarter by quarter and throughout the year. We have been doing that very efficiently. Can talk a little bit more about SG&A. Hi, Isabella Simonato. Which ended up putting pressure in the prices here in Brazil. Understanding what we saw was a first quarter that was suffering pressure from the market. That has led our results in process products to have a positive result, so that we can pass down the scenario is in the past and now we have an equation. We have more inventories in the Brazilian market, and naturally we have more costs in terms. You can see in our business report, detailing of the COVID cost per segment at the matrix cost management has been working well in terms of these results. The context was challenging. That shows our strategy, our resilience, that led to greater results than. Your line is open. You can proceed. Good morning, everyone. Thank you for the question. The prices. I'm sorry, I can't understand what he's saying. The growing margin. Would be for Patricio. Patricio, could you tell us a little bit about halal? In addition. Back to two figures. Perhaps something. I want to understand how sustainable that is in the second semester, Context, and then I'll let Sidney and Patricio speak. This is. At the external market, this adequately our prices re-established. We believe that this is going to happen. Your question, I'm very optimistic about the second half of the year for BRF. The speed in terms of inflation for grain and inputs. Without compromising the chain. We have major responsibility in trying to equate the margin. For the second half of the year, meat is going down. There hasn't been a trade-down in our categories. Are still higher in terms of level before COVID. That's the new habit. Added value growth. As Lorival showed in his presentation, in two years, we grew 10%. Less in line with the characteristics of a commodity. We went from 2%. Different types of consumers. This is adding value to our results. Sadia, Perdigão, Qualy, making it more comfortable. Than cost and inputs, we are going to have an improvement in that. Talking a little bit about halal as a whole, you asked a little more about Turkey. Have the pressure of the exchange, but of course, pressure in terms of different quarters about this. What we have now is a much. Year, we have a resumption of food services. There is a lot of restrictions. Not go to Europe, that they could go to Turkey. halal consumers. That. May and June on. It's a main. The valuing of the Turkish coin, it's more competitive. Credentials, having a better mix, leveraging the invest mix put into the Middle East, but also other markets. Turkey has an entire. Allow us to raise prices. We have the mix, we have the confidence of the consumer who is consuming more in the Gulf countries. The second part that is stronger in products. We have a lot of focus on added value products. We are launching semesters. We are accelerating the pipeline of launches in our business, tourism, and religious tourism in Saudi Arabia. It's all in line step ahead of this growing opening of the channels. Segueing on what Patricio has said, this is the scenario. Movement, recovery, and re-adequation of prices. Thank you. Thank you. Our next question. Good morning, everyone, and thank you for the opportunity. I'd like to ask to Sidney. The first one, you gave sides in terms of price and volumes. I'd like you, Patricio, to talk a little bit about when we look at the cost for ton in Halal, we saw growth nearing 30%. My question is, I mean, thinking that you have direct productions, I'd like to know whether I issue the issuance or anything like that. The questions I have for Sidney. First of all, we see significant increases in a few aspects. The cost for ton in Halal is growing below the other. My question is, should we expect an increase in share because we've seen a decrease in share. Do you see, as said in your previous answer, should we think of a more robust rebound? In the release, you called attention to the increase in finished the inventory for seeing this, especially in BRF's controller, which shows that that is How should we look at this increase in the inventory for finished product? That much demand. There was production, but demand was not enough to absorb all of- Be optimistic about the demand for the next few months, so you want to have a large inventory to-- Color in terms of how we should read those results, that would be great. Thank you. Thank you, Thiago. Thank you, Thiago. Production models, and you're absolutely right. When you look at direct exports, cost is virtually all for the product that you're offering. Turkey has a huge market share, and in Turkey, we have a number of fixed costs, saying it's comparable to the other. We have different. Shows the most. Halal is a lot more steady in terms of cost than our exports to Asia. Our KPIs are helping us to support our results and if you've been looking at our results for a little. The efficiency we have increased in our plans, but also our mix of challenges because of an unprecedented impact on our costs. Preference, because we have good distribution. We have 290,000. We are the first company to capture those results. Where are we seeing? Larger inventory. As you said, because we want not only to meet our customer's demand. Which is why we have come from under 70. That's because the trend in food services and food retailing is a lot closer to normal than what we had in the first half of the year, and we have to be ready to meet that demand. A market share that's over 85% going to the end of the year. Improvements. Sorry, the translation can't hear the speaker. Sorry, Thiago. How far could you hear me? Be confident for the rebound in retail and food services and also. Thank you very much, Sidney and Patricio. Thiago, your line is open. Please proceed. Hi, guys. Hello, everyone. We have the breakdown, but even qualitatively, if you could talk a little bit. This price increase in ready-made products in Brazil, considering the product mix and the new prices, at what level you are in terms of price adjustment? Lorival, in our Vision 2030 in the second half of the year, what could we expect into that period of time? Thank you. Well, with regard to our Vision 2030. In terms of pet food, we've made very significant strides. Right now is to integrate these new assets, these new lines of business, and identifying the best practices so that we can make good use that are as best positioned as possible in all of our channels, bearing in mind being natural, we need to know how to best position them in terms of price. Discipline in everything that we do. We are sticking to that strategy because we have some margin to accelerate or slow down attuned. We are looking around at opportunities so that. Hi, Thiago. Thank you again. That makes it effective. Region where we have kept a lot of discipline. Our discipline remains the same, and our plan will be employed. Our next question comes from Gustavo Troyano from Itaú BBA. Hi. Good morning, everyone, and thank you for the opportunity. My question is with regard to Nagoya. Price and volumes in South Korea and China shows there's a decrease. Whether you will be more focused on the margins in these two regions and more specifically, idle productivity in Japan and Korea, and comparing that to the profitability in China, that one is with you. Thank you, Gustavo. Japan and Korea. Japan KPIs we really look at is inventory levels. In Japan, we have local production. Legs. Whatever they raise locally, chickens always have the leg also very much supplied to different service types. Over the course of last year, Japanese inventories with food services being shut down, not to cook the chicken. When they buy these little trays of seasoned parts, so they go home and they prepare the rice of going out on the street or going to work, that had a huge impact, not only in purchase. In Japan, there was about 20% decline and as it gives greater flexibility for people to go out and we expect these consumer- Handling the situation in Japan. It's a situation that's easy to forecast moving forward. Inventory that remains after production and sales and exports is very important to look at. A smaller trend, a much smaller market. We talk about Japan and Korea because we have the same team for you. Thank you, Patricio. Questions. We turn the floor back to Mr. Lorival Luz for his final remarks. Very special time for us to release and talk about our earnings and of the economy as vaccination efforts move forward and with the return on all our operational efficiency and the efficiency of all the efforts will be very positive for all of us. I'd like to wrap up, thanking commitment of all our over 100,000 employees. To leave you here on the screen the coupon. Our products from Mercado em Casa. This is a channel where you can receive our products at home. This is a 20% discount valid until next Sunday, August 15th. Please enjoy the coupon and the quality that we are offering you through and through. Thank you all very much and have a great day. I'd like to thank everyone for joining. Have a great day.