Financial Report

2011

February 2012

Comments

Comments

Financial Statements

Other Matters

Comments

Comments

Financial Statements

Other Matters

Comments

RevenuesRevenues

• In second half the dollar strengthened against the Brazilian Real and revenues from investment increased.

ProjectsProjects

• Two projects funded: 8th Brazilian Cotton Conference and the Book version of the Study of the Brazilian Cotton Chain

ExpensesExpenses

• Completion of building work for IBA headquarters;• Visual communication, graphical lay-out and IBA website development.• Financial Operations Tax (IOF) expenses follow changes in dollar

Comments

Comments

Financial Statements

Other Matters

• Balance Sheet• Income Statement• Administrative expenses• Exchange• Cash and Investments

Financial Statements

BALANCE SHEET

Assets

Cash and Financial Investments 461.587.761 182.734.731 Prov. Inc. Tax on Returns (4.496.166) (16.249) Expenses Brought Forward 822 Other Assets 1.358

Projects -

Fixed Assets 288.230

TOTAL 457.382.005 182.718.482

Liabilities

Suppliers 22.270 Provisions for Xmas Bonus/Vacations, charges 197.095 Salaries and related charges 82.442 Tax obligations to collect 646 Loans 417.244 Other liabilitiesProjects -

EquitySurplus from tax year 274.778.314 Accumulated surplus 457.079.552 182.301.238

TOTAL 457.382.005 182.718.482

In R$ December/2011 December/2010

Financial Statements

INCOME STATEMENT

2011 2011 2011 2011 20111st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL % 4Q/3Q

Revenues 65.984.382 65.628.499 70.412.830 76.343.088 278.368.798 8% Commodity Credit Corporation 61.161.415 58.598.395 61.141.775 66.590.637 247.492.222 9% Revenue from Investment 4.822.967 6.882.804 9.271.055 9.711.240 30.688.065 5% Other revenue - 147.300 - 41.211 188.511

Expenses from investments (1.020.317) (1.368.274) (1.391.499) (1.756.573) (5.536.664) 26%

Costs w/ projects (1.467.058) (215.947) (1.683.005)

Gross surplus 64.964.064 64.260.225 67.554.272 74.370.568 271.149.129 10%

Administrative expenses and others (916.681) (1.201.592) (982.369) (924.297) (4.024.940) -6% Administrative expenses (698.652) (961.820) (844.343) (712.475) (3.217.290) -16% Financial Expenses-IOF (218.029) (239.773) (138.026) (211.817) (807.645) 53%

Net operational surplus 64.047.383 63.058.632 66.571.903 73.446.271 267.124.189 10%

Non-monetary revenue (expenses) (118.528) (595.275) 5.746.177 2.621.751 7.654.125 Depreciations (1.526) (7.010) (10.081) (10.577) (29.195) 5% Exchange rate variation (117.002) (588.265) 5.756.258 2.632.328 7.683.320

Surplus 63.928.855 62.463.357 72.318.080 76.068.022 274.778.314 5%

In R$2011

Financial Statements

ADMINISTRATIVE EXPENSES%

1Q2011 2Q2011 3Q2011 4Q2011 Total % Total

TOTAL FOR COST CENTER 698.652 961.820 844.343 712.475 3.217.290 100%-

PAYROLL AND RELATED CHARGES 432.239 512.123 501.208 509.005 1.954.575 61%-

PROFESSIONAL OUTSOURCED SERVICES 162.866 267.122 170.252 74.452 674.693 21%Attorney's Fees 21.000 21.000 21.000 28.000 91.000 Spíndola & Palmeira 21.000 21.000 21.000 28.000 91.000

- - - -

Audit Fees - 9.125 4.125 5.500 18.750 Crowe Horwarth - BDO 9.125 4.125 5.500 18.750

- - - -

Consulting Fees 135.357 235.659 75.285 27.196 473.497 Accounting 4.440 4.905 6.541 9.436 25.322 Fundação Dom Cabral 63.413 105.688 42.275 17.761 229.136 Vertice Ass. Comunicação 4.000 12.000 - - 16.000 Offi ce Work Fees 39.000 109.226 26.469 - 174.695 Recruitiment 24.504 3.840 - - 28.344 Other Fees 6.510 592 67.600 8.977 83.678 Translation 4.876 559 7.682 4.858 17.975 Other Fees 1.634 33 59.918 4.119 65.703 IT Services 547 1.641 3.308 5.496 Outsorced Services 200 601 1.471 2.272 INSS - - - -

- RENT, CONDOMINIUM, BUILDING FEES 54.109 82.489 56.430 56.916 249.944 8%

- EXPENDITURE ON ADMINISTRATIVE VEHICLE 4.610 5.268 4.311 3.977 18.167 1%

SERVICES AND UTILITIES 4.681 21.148 26.600 16.153 68.582 2%-

TAXES AND RATES 6.883 3.383 3.236 18.579 32.081 1%-

OTHER EXPENSES 33.265 70.287 82.305 33.393 219.250 7%Travels, Acoommodation and Representation 31.927 65.365 80.339 28.514 206.145 Several Fees 1.338 4.921 1.966 4.879 13.104

DESCRIPTION2011

Financial Statements

EXCHANGE RATE

Exchange rate fluctuation up until 31/12/2011: 13.63%

Source: Central Bank of Brazil

1,67

26

1,66

04

1,62

79

1,57

25

1,57

91

1,56

03

1,55

55

1,58

64

1,85

36

1,68

78 1,81

02

1,87

51

1,67

41

1,66

72

1,65

83

1,58

56

1,61

27

1,58

62

1,56

31

1,59

62 1,74

90

1,77

19

1,78

98

1,83

62

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2,00

Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez

Fechamento Mês

Média Mês

Financial Statements

CASH AND FINANCIAL INVESTMENTS

CDB Banco do Brasil 188.346.324 100,50%FUNDO EXCLUSIVO Banco do Brasil 100.356.095 101,00%CDB Santander 53.561.470 102,31%Bradesco 56.148.654 101,50%Banco do Brasil NY 63.166.198 Conta Corrente Brasil 9.019

Total 461.587.761

Average rate of investments (%CDI) 101,01% 398.412.543

Annualized CDI rate 11,41%

In R$ DECEMBER 2011 CDI RATE

Comments

Comments

Financial Statements

Other Matters

•Projects

Other Matters

PROJECTS

8th Brazilian Cotton Congress 1.467.058 Study of Cotton Chain - Book 215.947

Total 1.683.005

Projects (in R$) DECEMBER 2011

Executive PresidentAdministrative and Financial Directorate

SHN QD 02 BLOCO F SALA 1426

ED. EXECUTIVE OFFICE TOWER

70.702-000 – BRASÍLIA – DF

Tel: +55 61 3022-8300