Ceo conference btg pactual 14022012 eng_vf

BTG Pactual CEO ConferenceFebruary 14th, 2012 1

DisclaimerThis presentation may contain information that represent expectations of results, growth plansand future strategies. Such statements are not only based on historical facts, but also reflectthe management’s objectives and expectations. The words “advance”, “want”, “expect”,“estimate”, “intend”, “plan”, or similar expressions, spoken or written, tend to identifystatements that involve risks, be them known or unknown. Risks known involve uncertaintiesincluding, but not limited to: weather, grains harvest, interest rate, products competition,products acceptance in the market, competitors actions, regulatory issues, exchange rates,money policy etc. The company’s income may be different from that expressed or implicit insuch estimates.To evaluate these risks and uncertainties, and to obtain additional information about factorsthat could lead to different results from those estimated by the company’s management,please consult the section on Risk Factors included in the company’s Formulário deReferência filed with the Brazilian Securities Commission (CVM).All the information contained in this presentation shall be analyzed jointly with otherinformation publicly disclosed by the company. The company is under no obligation to updatethis document in order to reflect future events not foreseen by the company’s management.Nothing in this presentation shall be understood as an investment recommendation and thecompany shall not be responsible for transactions or investment decisions made based onthe information herein included. 2

Investment Highlights New Business Model:  Focus on grain and cotton production exclusively in Brazil Focus on Grain /  Value creation through a proven process of land appreciation Cotton Production and  Divestment of industrial assets (crushing and biodiesel) to Land Appreciation allocate resources into farming/land appreciation businesses  Only grain production company included in Ibovespa  ADTV (180 days): R$ 11.1MM, monthly trading volume A True Corporation represents 27% of the current market cap  Largest shareholder with no more than 17% and a significant free float base  More than 40 years of grain production / land appreciation experience in Brazil Experience Team  Capable and experience executives in every area of the business: operation, financial, commercial, land appreciation and planning 3

Strategic PlanFocus on grain/cotton production and land appreciation  Capable management with expertise  Divestment of non-core assets(1) in in key aspects of business: financial, 2H11, totalling R$ 257MM: agro production and land appreciation  Sugar and ethanol plant(2) for R$  CEO: Bento Moreira Franco 61.5MM  COO: Cleiton Custódio  Cotton-seed crushing plant(3) for  CCO: Gilmar Rossatto R$ 40MM (earn-out R$ 20MM)  CFO: Eduardo de Come  Biodiesel and crushing plant(4) New Execution of located in RS for R$ 55.5MM Management Strategic Plan  Two biodiesel plants(5) located in TO and BA for R$ 100MM  Manage cash flow closely, with plans to improve capital Hedge and Able to  Bargain power to acquire agro structure Financial Capture supplies and machinery  Financial decisions linked to Discipline Synergies  Rationalize machinery usage operational needs, allowing a  G&A reduction already fast decision-making process implemented:  Hedge policy: creation of a  Itumbiara office: closed (50 internal treasury committee employees)  SP office: reduction from 80 to 15 employees until 04/2012(1) Other non-core assets: Crateus, Floriano and Itaqui biodiesel plant and 42k hectares of lands located in CE, BA, PI and MG(2) Tropical Bioenergia(3) Located at Itumbiara(4) Rosário do Sul and São Luiz Gonzaga, respectively(5) Porto Nacional and Iraquara, respectively 4

A True CorporationShareholders’ structure Entrepreneur in  Entrepreneur in  Investments in  Founder of  Entrepreneur in agribusiness wood / wood wood / wood Bonsucex the Spanish real Owned one of related business related business  Investments in estate market the largest  Investments in  Executive board Alpargatas,  Founder of grain / cotton real estate of ABRAF Bombril, Veremonte production  Owner and CEO  Member of IEDI Paranapanema,  Investments in company in Leo Madeiras:  CEO of Satipel and Mineração real estate in Brazil Wood related between 1992 Buritirama Brazil and Identify and and hardware and 2008  Board Member overseas develop land in  Shareholder and  Shareholder and of Alpargatas,  Merger of Brazil (600 ha in Board member Chaiman of Paranapanema Brazilian real 1985 grow to of Duratex and Duratex and and Mineração estate 70.000 ha in Leroy Merlin Leroy Merlin Buritirama companies 2011)  Experience in  Experience in  Experience in  Experience in Experience in finance and corporate corporate finance and agribusiness and corporate governance and governance and strategy land appreciation governance strategy finance Otaviano Pivetta Helio Seibel Salo Seibel Bonsucex FIPs Veremonte Other 16.3%(1) 13.5% 5.0% 5.7%(2) 12.0% 47.5%  91% of shareholders are Brazilians  ADTV (180 days): R$ 11.1 MM  Monthly trading value represents 27% of current market cap - (1) Considering Mr. Otaviano Olavo Pivetta directly and indirectly position (2) Considering Mr. Silvio Tini de Araujo directly and indirectly position 5

Experience Team to Deliver Value CreationMotivated team(1) with deep knowledge of agribusiness in Brazil Name Age Previous Experiences Experience (Y) Position Bento Moreira Franco 39 Arion Capital, Angra Partners, Pactual and Dresdner 15 CEO/IRO Cleiton Custódio 41 26 years of Maeda: operations, supply, planning 26 COO Gilmar Rossatto 50 23 years at Bunge, manager of Mato Grosso 25 CCO Eduardo de Come 46 Volkswagen, DF Vasconcellos e Brasil Ecodiesel 26 CFO Cristiano Soares 30 Aliansce Shopping Center and Brasil Ecodiesel 8 Legal Officer Izaias Fredderico Altoé 46 Acquisition of agri supplies and crop planning 24 Manager Operations Fernando Braga 29 Vanguarda do Brasil 6 Manager MT West (120k ha) Fernando Cirillo 31 Maeda 6 Manager MT East (110k ha) Jairo Aguilar 34 Managed 100k ha located at MT 12 Agri Project Manager João Batista 36 Managed 50k ha located at Bahia 14 Machinery Manager Emilio Blanco Teles 43 Managed 220k ha located at MT 21 Land Bank Manager Approved 5% stock option to key executives that needs to be redistributed(1)due to recent changes in business model and executives 6

Value Creation Through Land AppreciationProven experience of identifying and adding value to land baseDepartment responsible for managing current land bank and identifying new land opportunities in Brazil Appreciation of Current Portfolio of Arable Land - (R$ MM) Ha 784.7 Ribeiro do Céu (1) 17,959 Mãe Margarida (1) 14,277 Terra Santa (1) 29,305 1,184% São José (2) 17,865 572% 273% 157.8 157% Valuation elaborated by Deloitte (12/30/2010) (1) Valuation elaborated by Valora Engenharia S/S Ltda. (2008) (2) 7 Obs: Not considered Iporanga farm and non arable lands for grains and cotton

Strategic Location of AssetsClimate risk diversification and better equipment usage Distribution of Arable Land (2) Lands Under Control 350 k ha  135 k ha - owned lands Leased: 50.0 k ha - 45 k ha - arable lands - 48 K ha - land reserves - 42 k ha - non arable for grains/cotton  215 k ha - leased lands Equipment such as PITractorsPlantersSprayers BA MTAgricultural AircraftGrain and cotton pickers GO Owned(1): 3.2 k ha Owned: 89.9 k ha MG Leased(1): 30.1 k ha Storage Capacity Leased: 120.6 k ha 13 units with static capacity of 256 k tons Leased: 8.5 k ha Leased: 5.8 k ha (1) Included participation of 10% in Jaborandi Propriedades and 50% in Jaborandi Agrícola (2) Not considered no arable lands for grains and cotton 8

Crop 11/12Following budget strictly to create value to shareholders Only1st Crop (1) Rice, cooffee and gross seeds (2) 2nd Crop planting unfinished Climate Risk Management Reducing climate risk by respecting dates for planting period Possible changes in crop planting avoiding loss of yield 9

Value Drivers ARMAZENAGEM 10

Commodities MarketBrazil is the most relevant player Soybean (MM tons) 147% Corn (MM tons) 93% 243% 86% 21% 78% 73% 106% 292% 116% Cotton (MM tons) 55% 45% OTHER COUNTRIES CHINA USA 80% BRAZIL -% 200% 11 Source: MBAgro and USDA

Available Arable Land WorldwideBrazil is the most capable to supply commodities Available Arable Land (000’ ha)  Brazil and African countries have land available to supply worldwide demand of commodities  African countries present institutional and logistic problems  Brazil will be responsible to supply worldwide demandSource: FAO 12

Land Evolution and PeersV-Agro is one of largest farming company in Brazil Planted Area (ha 000) Crop 2010/11(1) Vanguarda Agro SLC Agrícola Adeco Agro Brasil Agro Under Control Area (ha 000) (2) Not considered owned lands from sugarcane and cattle grazing (2) Source: V-agro and companies website (86.2k ha) and leased sugarcane (76.9k ha) 13

SynergiesCapturing identified synergy to create value Disposal of assets allow Optimization and higher reduction of freight use due to location of internally and externally assets Freight costs Integration of reduction due offices and to geographic management, location of SYNERGIES significant cotton reduction of processing G&A (90 units employees) Own Negotiation Production of Agricultural of Seeds Supplies Producing 80% of own demand of soybean Bargain power to and cotton seeds negociate fertilizers, defensives and equipment 14

Liquidity and Corporate GovernanceOnly grain production/land appreciation company in Ibovespa In Ibovespa since May/2010 Presence in 100% of trading floors since IPO in 2006 LIQUIDITY ADTV (180 days): R$ 11.1 MM More than 22,000 More than 2,500 trades per day shareholders in 2011 15

Financial UpdatesDiscipline to keep commodities and USD hedged  Financial statements in accordance with IFRS  Difficulty to compare historical financial results due to recent change in business model  9M11Maeda results (farming operation 100% under V-Agro control during this period) indicates trend of positive results  Hedge policy used to mitigate commodity and USD exposure  V-Agro business is focused on agri operation, not on commodities and USD speculation Sale of Commodities Sale of Commodities Acquisition of Acquisition Defensives on Fertilizers 16

Environmental Responsability  Respect and compliance with the environmental legislation  Protection of headwaters, such as fountains, rivers and streams, in areas managed by Vanguarda Agro  Protection to biodiversity, with preservation of percentages of legal reserve of each property  Reduction and control of atmosphere pollution by means of rational application of defensives 17

http://www.v-agro.com.br	216
http://brasilecodiesel.homolog.riweb.com.br	11

Ceo conference btg pactual 14022012 eng_vf

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Ceo conference btg pactual 14022012 eng_vf Presentation Transcript