Sadia was seeking a more comfortable financial condition. Its key problem seemed to be an insufficient
operating profit, possibly due to strong competition in the industry. Its gross revenues were rising,
operating income and profits more than doubled during the period under analysis. Its financial income
was healthy and its derivative transactions had been reduced to a minimum. It was found that the
influence of derivatives in the company’s value was practically zero in the second semester of 2008. For
reasons that were not made clear, during the third quarter of 2008 the company intensifies transactions
with derivatives, and contrary to a prudential attitude, it suffered losses of R$ 2.6 billion from derivative
instruments.