Tereos Internacional First Quarter 2011/12 Results

São Paulo - August 12th, 2011

Highlights

Q1 2011/12 Financial Results

Operating Segment Review

Outlook and Summary

Highlights

* Adjusted EBITDA/EBIT: EBITDA/EBIT excluding items from discontinued operations, accounting effect of adjustments in the

fair value of the financial instruments and of the biological assets

Revenues: R$1.6 billion

• Year-over-Year: + 47.4% at constant currency

Adjusted EBITDA*: R$206 MM

• 2x Year-over-Year

Net profit: R$63 MM

• + R$ 122 MM Year-over-Year

Record first quarter net profit due to strong increase in the operating income (+ R$93 MM)

Q1 performance driven by strong pricing environment for sugar and ethanol, as well as the positive contribution from recent acquisitions (Vertente, Mandu and GQF)

Q1 2011/12 - Financial Highlights Record first quarter net profit: strong increase in operating results

4

Q1 2011/12 - Market Fundamentals

Sugar: sharp rise in world prices driven by concerns about a shortfall in Brazil

UNICA recent estimate for 2011/12 down 10.2% to 510 MM tons for CS

Raw sugar prices: + 42.9% from early May to late June

Starch: cereal prices down in Europe

After the announcements in May about the end of export restrictions in Russia and Ukraine, MATIF wheat prices fell €50/ton to less than €200/ton (c20%)

Ethanol: supply lags demand growth and high price environment

Brazil: prices still high due to limited supply

US Senate vote: first steps towards the drop in ethanol imports tariff and subsidies?

5

1st June: announcement of a R$ 49 million investment in Halotek-Fadel to enter

into the starch market in Brazil

21st June: completion of the São José distillery and start of ethanol production

(45,000 m³ for this first crop)

Weather pushing sugar prices up. Guarani is revising its original forecast for a

18.5 MM tons production to 17.1 MM, a 7.6% reduction and below UNICA’s

recently revised forecast

30th June: payment of R$ 44.6 MM in annual dividend to shareholders

• R$ 0.066 per share, a dividend yield of 2% at date of payment

3rd August, BM&FBOVESPA granted a 1-year extension to achieve 25% minimum

free float (through 1st August, 2012)

Q1 2011/12 Highlights

6

Q1 2011/12 Financial Results

Q1 2011/12 - Revenues Revenue increase driven by high sugar & ethanol prices, fueled by organic and acquisition

growth

1,604 + 48%

1,081

1,604

1,081

In R$ MM

+ 7

+ 266 - 17

+ 267

Sugarcane

• Revenues: R$ 648 mm + 89% vs. Q1 2010/11 at constant currency

• Brazil: + 74% as reported 47% organic and 27% due to Mandu acquisition

• Indian Ocean: + 169% at constant currency Driven by GQF acquisition

Cereal

• Revenues: R$ 956 mm + 29% vs. Q1 2010/11 at constant currency

• Starch Europe: + 32% at constant currency Mainly driven by 26% increase in selling

prices & mix

• Ethanol Europe: + 14% at constant currency Driven by

price increases

8

In R$ MM

Adjusted EBITDA EBITDA

114

216

Q1 2011/12 - Adjusted EBITDA and EBITDA Increase led by sugarcane and European ethanol operations

+ 88%

9

100

206

+ 107%

Sugarcane • Brazil: 12x higher as reported

Higher prices and Mandu acquisition. Q1 10/11 impacted by non

recurring itens

• Indian Ocean: 2x higher as reported Positive contribution of GQF acquisition

Cereal • Starch: - 35% at constant currency + R$29

million from energy and logistic increases, more than

offsetting high selling prices

• Ethanol: 4x higher at constant currency Confirming improvement recorded in Q4

10/11 (+2%)

Adjustments • Sugarcane: + R$ 26 million

Fair value of biological assets and financial instruments

• Cereals: - R$ 15 million

Fair value of financial instruments

In R$ MM

10

Q1 2011/12 - From Adjusted EBITDA to Net Income Record first quarter net income: strong operating income

Fair value of biological assets: - R$1 MM

Fair value of financial instruments: + R$11 MM In R$ MM

206 + 10 216

- 133

82

66

- 16 - 3

63

- 12

51

Cash Flow reflecting the rise in Working Capital

Cash Flow

In R$ Million Q1 2011/12

Adjusted EBITDA 206

Working capital variance (232)

Other operating (including income tax paid) (9)

Operating Cash Flow (35)

Financial interests (24)

Dividends paid and received (50)

Capex (239)

Cash Flow before acquisition and capital increase (348)

Acquisition & Perimeter impact (6)

Capital increase 0

Free Cash Flow (354)

Forex impact 6

Total net debt (349)

Total net debt increase (including related

parties):

• R$349 million vs. March 31, 2011

Capex & Acquisitions:

• Brazil: R$139 million

• Cereals: R$74 million

• Indian Ocean: R$32 million

11

Debt Total Net Debt: R$349 million increase vs March 31, 2011

Net Debt: R$ 2,498 + 16.2% vs March 31, 2011

Net Debt / Adjusted EBITDA: 2.6x vs. 2.5x at March 31, 2011

Gross Debt

Breakdown by currency

Debt

In R$ Million June 30, 2011 March 31, 2011 Change

Current 1,231 1,684 -26.9%

Non-current 1,660 1,134 46.4%

Amortized cost (26) (15) 73.3%

Total Gross Debt 2,865 2,803 2.2%

In € 1,484 1,364 8.8%

In USD 1,033 763 35.4%

In R$ 316 637 -50.1%

Other currencies 32 54 -40.7%

Cash and cash Equivalent (310) (633) -51.0%

Total Net Debt 2,555 2,170 17.7%

Related Parties Net Debt (57) (21) 185.0%

Total Net Debt + Related Parties 2,498 2,149 16.2%

12

Euro

52%

US Dollar

36%

Real

11%

Others

1%

Working capital requirements for both sugarcane and cereal divisions

Advancing to suppliers related to crushing expansion and cogeneration activity

Operating Segment Review

Sugarcane

Brazil - Indian Ocean

Sugarcane - Production and Sales

Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh) Sugarcane Crushing (MM t) Sugar Sales (‘000 t)

15

213

488424

233305

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

99

179164 165

140

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

42

113

81

51

84

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

Sugarcane crushing: 5.8 million tons - 2% vs. Q1 2010/11

Beginning of crushing period later than last crop: End of April 2011 while in the last crop it started on March 2010

Sugar production: 417,000 tons - 7% vs. Q1 2010/11

• Mix: 61% sugar and 39% ethanol

Ethanol production: 164,000 m³ - 8% vs. Q1 2010/11

• Anhydrous: 39% of total ethanol vs. 28% in Q1 2010/11

Influenced by the dry weather the sugar content in the raw material (TRS) decrease: 123 kg/ton of sugarcane during Q1 2011/12 vs.130 kg/ton of sugarcane during Q1 2010/11

Cogeneration: 84,000 MWh + 101% vs. Q1 2010/11

5,9

8,8

4,05,8

Q1

10/1

1

Q2

10/1

1

Q3

10/1

1

Q4

10/1

1

Q1

11/1

2

Sugar

Ethanol

502

288

Sugarcane Brazil - Q1 Financials Sharp improvement in revenues and Adjusted EBITDA

* includes Cogeneration, Agricultural Products and Hedging

Key Figures

In R$ Million

Q1

2011/12

Q1

2010/11

Change

Reported

Revenues 502 288 +74.1%

Gross Profit 89 8 +11x

Gross Margin 17.8% 2.8%

EBITDA 136 24 +6x

EBITDA Margin 27.0% 8.3%

Adjusted EBITDA 112 9 +12x

Adjusted EBITDA Margin 22.3% 3.3%

EBIT 48 (59) +107

EBIT Margin 9.6% (20.6)%

Adjusted EBIT 24 (74) +98

Adjusted EBIT Margin 4.8% (25.6)%

Capex 139 75 +84.8%

Gross Profit: R$89 million

• Impact of fair value of biological assets:

- R$2.2 million vs. + R$20.8 million in Q1 2010/11

Adjusted EBITDA: R$112 million

• Fair value of financial instruments:

+ R$25.8 million vs. - R$6.3 million in Q1 2010/11

Adjusted EBITDA Margin1 including tilling

depreciation would be 27.3%

Sugar: 52% of total revenue

• Sales volume: + 43% vs. Q1 2010/11

Mainly to export market: + 123% vs. Q1 2010/11

• Price (R$/ton): + 14% vs. Q1 2010/11 (before hedging effect)

Ethanol: 39% of total revenue

• Sales volume: + 42% vs. Q1 2010/11

Higher volume in domestic market

• Price (R$/m³): + 80% vs. Q1 2010/11

Capex: R$139 million

• Plantation: R$43 million

• Expansion and cogeneration: R$60 million

In R$ MM

Revenues

16

+ 25

+ 87 + 61

+ 58

- 17

(1) Tereos Internacional allocates tilling expenses as

cost. If tilling expenses were allocated as investment,

Adjusted EBITDA would have reached R$137 million.

Mozambique

Anticipated crop with sugarcane crushed in Q1

• 2011/12 crushing season began this year on May 10th

• Quarter agricultural yields reached 99 ton/ha vs 75

ton/ha as a result of irrigation and planting program

Revenues: R$4 million

• Stable vs. Q1 2010/11

Adjusted EBITDA: - R$11.9 million

• Up R$3.1 million in Q1 2010/11 in a seasonally low

quarter

Capex: R$5.1 million

La Réunion

No sugarcane crushed in Q1

• Crushing period runs from July to end-December

Revenues: R$142 million

• + R$92 million vs. Q1 2010/11

• GQF acquisition impact

Adjusted EBITDA: R$18.8 million

• vs. R$8.0 million in Q1 2010/11

Capex: R$27.3 million

• + R$21 million vs. Q1 2010/11

Sugarcane Indian Ocean - Production - Q1 Financials Increase in prices and perimeter effect

Key Figures

In R$ Million

Q1

2011/12

Q1

2010/11

Revenues 146 54

Gross Profit 20 (1)

Gross Margin 14.0% (2.1)%

EBITDA 8 1

EBITDA Margin 5.4% 2.5%

Adjusted EBITDA 7 (7)

Adjusted EBITDA Margin 4.7% (13.0)%

Capex 32 13

La Réunion

Sugarcane Crushing (’000 t)

Mozambique

Sugarcane Crushing (‘000 t)

17

1.003

874

Q1

10/1

1

Q2

10/1

1

Q3

10/1

1

Q4

10/1

1

Q1

11/1

2

230

289

17 65Q

1

10/1

1

Q2

10/1

1

Q3

10/1

1

Q4

10/1

1

Q1

11/1

2

Cereal

Starch Europe - Ethanol Europe

Starch Europe - Production and Sales Higher wheat grinding mainly impacting co-products volumes

Co-products Sales (‘000 t) Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) Ethanol & Alcohol Sales (‘000 m3)

Cereal grinding: 739,000 tons + 7% vs. Q1 2010/11

More wheat ground: different mix of products

Lesser impact in starch and sweeteners volumes and higher impact in co-products

Sales Volumes

• Starch and Sweeteners: + 0.7% vs. Q1 2010/11

• Alcohol & Ethanol: - 5% vs. Q1 2010/11

• Co-products: + 10% vs. Q1 2010/11

19

693 702 696 696739

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

437424

398 409

440

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

45 46

4244 43

Q1

10

/11

Q2

10

/11

Q3

10

/11

Q4

10

/11

Q1

11

/12

Starch Europe - Q1 Financials Higher COGS due to energy, raw material and logistics expenses

Revenues In R$ MM

Q1 2010/11 Currency Volume Price & Mix Q1 2011/12

739

577

Starch and

Sweeteners

62.8%

Alcohol and

Ethanol

9.4%

Co-

products

26.4%

Others

1.4%

Key Figures

In R$ Million

Q1

2011/12

Q1

2010/11

Change

Reported

Change

Constant

Currency

Revenues* 739 577 +28.1% +27.0%

Gross Profit* 161 172 -6.4% -7.5%

Gross Margin* 21.8% 29.8%

EBITDA 49 89 -45.1% -45.6%

EBITDA Margin 6.4% 15.5%

Adjusted EBITDA 64 98 -34.6% -35.1%

Adjusted EBITDA Margin 8.4% 17.0%

EBIT 20 60 -67.0% -67.2%

EBIT Margin 2.6% 10.5%

Adjusted EBIT 35 69 -49.2% -49.6%

Adjusted EBIT Margin 4.6% 12.0%

Capex 40 22 +82.8%

Revenues: + 27.0% at constant currency • + 21.5% in prices and mix. Cereal prices increases

mostly passed through to customers

• + 5.5% in volumes

Gross Profit: - R$11 million • Increasing energy costs of R$20 million

Adjusted EBITDA: R$64 million, down R$34 million • Increasing logistic expenses of R$9 million

+ 5 + 32

+ 125

* Excludes the R$ 30.5 million financial impact of the sales of co-

products produced by Tereos BENP and sold by Tereos Syral 20

Ethanol Europe - Q1 Financials Second consecutive quarter of solid performance after technical improvements

Key Figures

In R$ Million

Q1

2011/12

Q1

2010/11

Change

Reported

Change

Constant

Currency

Revenues* 218 162 +34.4% +33.0%

Gross Profit* 33 12 +181.4% +176.7%

Gross Margin* 15.3% 7.3%

EBITDA 27 7 +4x +4x

EBITDA Margin 14.3% 4.1%

Adjusted EBITDA 27 7 +4x +4x

Adjusted EBITDA Margin 14.3% 4.1%

Capex 34 7 +5x

Ethanol sales*: 129,000 m³

• Slightly lower than Q1 2010/11. Increase in production

practically offsetting a decrease in trading activities

Revenues: + 34%

• FX impact: + 1%

• Volumes slight increase : + 2%

• Prices increase: +31%

EBITDA and Gross Profit for the quarter stable if compared to Q4 2010/11

Solid operating performance after an atypical year, with record production volumes posted for the second consecutive quarter

Capex: R$34 million

• Gluten project to start up in Q1 in 2012/13

* Includes sales of ethanol produced by Tereos

Revenues In R$ MM

Q1 2010/11 Currency Volume Price & Mix Q1 2011/12

218

162

21

+ 2 + 3

+ 51

* Includes the R$ 30.5 million financial impact of the sales of co-

products produced by Tereos BENP and sold by Tereos Syral

Outlook and Summary

Tereos Internacional - Conclusion

Investing in future growth through:

• Increasing our sugarcane capacity: brownfield investments (+ 3.5 million tons)

in our existing mills and through cogeneration operations (4 times growth)

• Entering the Brazilian starch market to benefit from greater margin potential

Positive market outlook:

• Sugar: lower crop estimates for Brazil expected to sustain high world sugar

price levels

• Ethanol: tight supply combined with increasing flex-fuel fleet in Brazil expected

to maintain ethanol prices at current level

• Starch: isoglucose prices shall be supported by higher sugar prices

23

24