4. * 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
Strong revenues: R$1.6 billion…
• Year-on-Year: + 8.7% at constant currency
…due to:
• increased year-on-year prices across all key products categories
• higher volumes sold for the EU ethanol segment and Indian Ocean sugarcane
segment
Record EBITDA: R$282 MM
• EBITDA margin of 17.1% 370 bps improvement from Q1
Adjusted EBITDA*: R$264 MM
• -7.5% Year-over-Year +28.2% Quarter-on-Quarter
Q2 2011/12 - Financial Highlights
Strong quarter revenues and EBITDA demonstrating benefits of Company’s complementary
portfolio
4
5. * 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
H1 11/12 revenues: R$3.2 billion, up 24.9% at constant currency
• Year-on-year increase in prices across all key products categories
• +21.6% for Brazil and +25.6% for Starch Europe, at constant currency
Adjusted EBITDA*: R$470.8 MM, up 21.4% at constant currency
• Adjusted EBITDA margin of 14.5%
• EBITDA: R$497.1 MM, up 45.3% at constant currency
Net financial expenses: R$87.8 MM, down 17.4% at constant currency
• Loss on foreign exchange: R$6.2 million
Consolidated net result: R$65.6 MM, an increase of R$148.6 MM at constant
currency
H1 2011/12 - Financial Highlights
Higher prices boosting revenues and EBITDA
5
6. Q2 2011/12 - Market Fundamentals
Sugar: Shortfall in Brazil supports prices
• UNICA’s new estimate for 2011/12 Center-south crop: 489 MM tons (-14.1% vs.
the 1st estimate)
• Bumper crop expected in Thailand, EU and Russia
Starch: Cereal prices down driven by higher production estimates
• Average corn and wheat prices down 14% from Q1 to Q2
• USDA estimates an improvement in world wheat balance
• Wheat prices remained cheaper than corn during the quarter (average 5
EUR/ton)
Ethanol: Tight balance across main markets maintaining high prices
• Brazil: limited supply still supporting higher prices
• Europe: ethanol supply lags behind blending target
6
7. Sugarcane:
• Guarani revised its original forecast from 18.5 MM tons to 16.2 MM tons
(12.4% reduction), in line with UNICA’s forecast revision
• On time completion of R$800 million announced investment plan: start-up
of ethanol distillery in São José plant and conclusion of annual planting
program
Cereal:
• Selby plant and BENP project on route and expected to come on stream
in the first half of 2012 calendar year
• MoU with Wilmar to process 300,000 tons of wheat in China in the first
phase of the project
7
Q2 2011/12 - Highlights
9. Q2 2011/12 - Revenues
Revenues increase driven by higher prices and better product mix in starch segment
1,648
+ 10.0%
1,498
In R$ MM
Sugarcane
• Revenues: R$ 698 mm -7% vs. Q2 2010/11 at constant currency
• Brazil: -18% as reported -31% volume effect and +34% price effect (ex-hedge)
• Indian Ocean: +46% at constant currency Mainly driven by volume & price increases in Mozambique
Cereal
• Revenues: R$ 949 mm +24% vs. Q2 2010/11 at constant currency
• Starch Europe: + 32% at constant currency Mainly driven by 24% increase in selling prices & mix
• Ethanol Europe: -5% at constant currency Mainly due to -15% effect of trading volume
9
Q2
2010/11
Currency Volume Price &
Mix
Others Q2
2011/12
1,648
1,498 +16
-162
+26+270
10. In R$ MM
Adjusted EBITDA EBITDA
226
282
Q2 2011/12 - Adjusted EBITDA and EBITDA
Impact of lower volumes in Brazil partly offset by higher prices in all segments
+ 24.4%
10
285
264
- 7.5%
Sugarcane
• Brazil: -42% as reported Mainly due to fixed costs diluted on lower volumes
• Indian Ocean: +50% at constant currency Positive effect of higher prices and volumes
Cereal
• Starch: +31% at constant currency Mainly driven by higher selling prices
• Ethanol: 3x higher at constant currency Boosted by own sales (slightly affected by lower trading
activities)
Adjustments
• Sugarcane: - R$ 5 million Fair value of biological assets and financial instruments
• Cereals: - R$ 12 million Fair value of financial instruments
In R$ MM
11. Cash Flow
In R$ Million
H1 2011/12
Adjusted EBITDA 471
Working capital variance (513)
Other operating (including income tax paid) (24)
Operating Cash Flow (66)
Financial interests (56)
Dividends paid and received (51)
Capex (398)
Financial investments (50)
Free Cash Flow (621)
Forex impact (300)
Acquisition & Perimeter impact (14)
Total net debt (935)
Increase in working capital due to higher
stocks in Brazil, reflecting the seasonality
of the quarter (vs. 31/03/11)
Capex & Acquisitions
• Brazil: R$234 million
• Cereals: R$139 million
• Indian Ocean: R$48 million
R$ 300 million Forex impact on total net
debt versus March 2011
11
Cash Flow reflecting the rise in Working Capital and CAPEX
12. Net Debt / Adjusted EBITDA: 3.3x in line with 3.4x at Sept 30, 2010
(12 months Adjusted EBITDA = R$ 935.4 million)
Main reasons for the Net Debt increase:
(i) Non-cash Forex impact;
(ii) Investments; and
(iii) Working capital needs
Debt
In R$ Million
September
30, 2011
March 31,
2011
September
30, 2010
Change
Y-o-Y
Current 1,435 1,684 1,667 -13.9%
Non-current 2,138 1,134 1,236 73.0%
Amortized cost (25) (15) (16) 56.2%
Total Gross Debt 3,547 2,803 2,887 22.9%
In € 1,575 1,364 1,388 13.5%
In USD 1,671 763 757 120.7%
In R$ 258 637 703 -63.3%
Other currencies 69 54 55 25.4%
Cash and cash Equivalent (429) (633) (440) -2.5%
Total Net Debt 3,119 2,170 2,447 27.5%
Related Parties Net Debt (35) (21) (31) 9.7%
Total Net Debt + Related
Parties
3,084 2,149 2,416 27.6%
12
Total Net Debt
R$668 million increase vs September 30, 2010
Gross Debt
Breakdown by currency
Euro
44%
US Dollar
47%
Real
7%
Others
2%
US$ denominated debt related to
sugar export contracts
Debt related to cereal
functional currency
15. Sugarcane Brazil - Production and Sales
Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)
15
Sugarcane crushing: 7.8 million tons - 11% vs. Q2 2010/11
Sugar production: 694,000 tons - 9% vs. Q2 2010/11
• Mix: 63% sugar and 37% ethanol
Ethanol production: 252,000 m³ - 26% vs. Q2 2010/11
• Anhydrous: 38% of total ethanol vs. 33% in Q2 2010/11
Cogeneration: 105,500 MWh - 7% vs. Q2 2010/11
8,8
4,0
5,8
7,8
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
179
164 165
140
99
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
113
81
51
84
106
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
Adverse climatic conditions (drought in 2010 and frost in 2011 winter) and heavy
flowering affected sugarcane yields and sugar content (TRS)
TRS : 146 kg of sugar /ton of sugarcane for Q2 2011/12 vs.156 kg/ton for Q2 2010/11
488
424
233
305
374
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
16. Sugar
Ethanol
502
613
Sugarcane Brazil – Q2 Financials
Higher prices for sugar and ethanol partly offset lower volumes
* includes Cogeneration, Agricultural Products and Hedging
Key Figures
In R$ Million
Q2
2011/12
Q2
2010/11
Change
Reported
Revenues 502 613 -18.1%
Gross Profit 40 158 -74.4%
Gross Margin 8.1% 25.9%
EBITDA 115 139 -17.3%
EBITDA Margin 23.0% 22.7%
Adjusted EBITDA 109 188 -42.0%
Adjusted EBITDA Margin 21.8% 30.7%
Capex 95 40 +138.7%
Gross Profit: R$40 million
• Impact of fair value of biological assets:
- R$2.1 million vs. - R$21.4 million in Q2 2010/11
Adjusted EBITDA: R$109 million
• Fair value of financial instruments:
- R$8.0 million vs. + R$24.7 million in Q2 2010/11
Adjusted EBITDA Margin1 including tilling
depreciation would be 32.0%
Sugar: 68% of total revenue
• Sales volume: - 23% vs. Q2 2010/11
• Price (R$/ton): + 27% vs. Q2 2010/11 before hedging
effect
Ethanol: 23% of total revenue
• Sales volume: - 45% vs. Q2 2010/11
• Price (R$/m³): + 41% vs. Q2 2010/11
Capex: R$95 million
• Plantation: R$23 million
• Expansion and cogeneration: R$52 million
• Current investments: R$20 million
In R$ MM
Revenues
16
+ 84
- 94
+ 34
- 66
- 69
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment,
Adjusted EBITDA would have reached R$ 160
million.
17. Mozambique
Sugarcane crushing: 315,000 tons
• Record quarter crushing
• Quarter agricultural yields reached 77 ton/ha vs 51
ton/ha in Q2 10/11 as a result of irrigation and planting
program
Revenues: R$32 million
• 2.2x higher vs. Q2 2010/11
Adjusted EBITDA: + R$14 million
• Up R$4 million vs. Q2 2010/11
Capex: R$4.7 million
• -R$1 million vs. Q2 2010/11
La Réunion
Sugarcane crushing: 989 000 tons
Revenues: R$164 million
• + R$48 million vs. Q2 2010/11
Adjusted EBITDA: R$44.8 million
• vs. R$29.1 million in Q2 2010/11
Capex: R$10.8 million
• - R$30 million vs. Q2 2010/11
Sugarcane Indian Ocean – Production – Q2 Financials
Better results and improved operations
Key Figures
In R$ Million
Q2
2011/12
Q2
2010/11
Revenues 197 131
Gross Profit 46 (52)
Gross Margin 23.6% (39.6)%
EBITDA 58 25
EBITDA Margin 29.7% 19.1%
Adjusted EBITDA 59 39
Adjusted EBITDA Margin 30.0% 29.9%
Capex 15 47
La Réunion
Sugarcane Crushing (’000 t)
Mozambique
Sugarcane Crushing (‘000 t)
17
1.003
874
989
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
230
289
17 65
315
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
19. Starch Europe - Production and Sales
Higher cereal grinding and improved sales volumes of ethanol & alcohol and co-products
Co-products Sales (‘000 t)Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) Ethanol & Alcohol Sales (‘000 m3)
Cereal grinding: 720,000 tons + 2.6% vs. Q2 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: + stable vs. Q2 2010/11
• Alcohol & Ethanol: + 4.3% vs. Q2 2010/11
• Co-products (ex-BENP volumes): + 1.9% vs. Q2 2010/11
19
702 696 696
739 720
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
424
398 409
440
424
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
46
42
44 43
48
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
257 253 258 262 262
39
61 68 59
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Q2
11/12
SYRAL BENP/DVO
20. Starch Europe – Q2 Financials
Solid results driven by higher volumes and prices
Revenues*
In R$ MM
767
591
Starch and
Sweeteners
61.2%
Alcohol and
Ethanol
10.7%
Co-products
and others
28.1%
Key Figures
In R$ Million
Q2
2011/12
Q2
2010/11
Change
Reported
Change
Constant
Currency
Revenues* 767 591 +29.8% +27.4%
Gross Profit* 150 128 +17.2% +14.5%
Gross Margin* 19.6% 21.7%
EBITDA 87 61 +42.6% +39.8%
EBITDA Margin 10.9% 10.3%
Adjusted EBITDA 76 56 +34.1% +31.3%
Adjusted EBITDA Margin 9.5% 9.5%
Capex 38 18 +111.7%
Revenues: +27.4% at constant currency
• +24.5% in prices and mix. Cereal prices increases
mostly passed through to customers
• +3.4% in volumes
Gross Profit: R$150 million
Adjusted EBITDA: R$76 million, up R$21 million
+11 +20
+145
* Excludes the R$ 27.5 million financial impact of the sales of co-
products produced by Tereos BENP and sold by Tereos Syral20
21. Ethanol Europe – Q2 Financials
Higher sales volumes of own ethanol while lower trading sales
Key Figures
In R$ Million
Q2
2011/12
Q2
2010/11
Change
Reported
Change
Constant
Currency
Revenues** 182 160 +13.7% +11.7%
Gross Profit** 34 7 +5x +5x
Gross Margin** 18.7% 4.2%
EBITDA 22 7 +3x +3x
EBITDA Margin 14.4% 4.3%
Adjusted EBITDA 22 7 +3x +3x
Adjusted EBITDA Margin 14.2% 4.3%
Capex 27 7 +4x +4x
Ethanol sales*: 105,800 m³
• Slightly lower than Q2 2010/11. Increase in production
practically offsetting a decrease in trading activities
Revenues**: R$182 million, +11.7% at constant
currency
• FX impact: +1.9%
• Volumes increase (ex-trading): +29.4%
• Prices fall: -2.5%
Improved gross margin and stable EBITDA margin
as compared to Q1 2011/12
Higher production figures, on the back of better
utilization ratios
Capex: R$27 million
• Mainly for gluten project at BENP
* Includes sales of ethanol produced by Tereos
Revenues**
In R$ MM
182
160
21
+3
+47
-24
** Includes the R$ 27.5 million financial impact of the sales of co-
products produced by Tereos BENP and sold by Tereos Syral
-4
23. Sugarcane: focusing on operations, investing in production
Brazil: implementation of R$ 800 MM investment program on production
expansion (sugarcane renewal and new planting, industrial capacities) and
cogeneration (bringing stable income)
• Capex financed by BNDES loan of R$ 800 MM obtained in March 2011
Africa: irrigation and planting program under final phase of implementation and
potential expansion capacity being explored
Cereals: capitalizing on starch production knowledge by entering into growing
economies
EU: conversion of BENP Lillebonne into starch facility launched and Selby’s
activities to come on stream in the H1 2012
Brazil: Completion of starch transaction in Brazil (Syral-Halotek)
China: MoU with Wilmar to develop a starch project in China
23
Tereos Internacional - Conclusion
