Q1 1314 earnings release
Upcoming SlideShare
Loading in...5
×
 

Q1 1314 earnings release

on

  • 271 views

 

Statistics

Views

Total Views
271
Views on SlideShare
247
Embed Views
24

Actions

Likes
0
Downloads
0
Comments
0

3 Embeds 24

http://ir.tereosinternacional.com.br 15
http://tereos.riweb.com.br 6
http://ri.tereosinternacional.com.br 3

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Q1 1314 earnings release Q1 1314 earnings release Document Transcript

  • Tereos Internacional Reports Q1 2013/14 Results Q1 2013/14 Major Highlights • Total Revenues: R$1.9 billion +17.6% year-on-year • Adjusted EBITDA: R$209.5 million +55.8% year-on-year • Net Result: R$8.6 million vs. net loss of R$45.2 million in Q1 12/13 • Joint Ventures consolidated under equity method Figures disclosed according to IFRS 10, 11 & 12 and revised IAS 19 Key Operational Developments • Guarani o Progress in co-generation (Cruz Alta/São José) and capacity expansion (Vertente/Mandu) o 2013/14 planting program with c. 30,000 hectares already achieved • Syral Europe o Lillebonne volumes progressively increasing (capacity utilization: over 80% in Q1 13/14) o Progressive dextrose production ramp-up at Lillebonne • Syral Brazil o Satisfactory start of commercial production at Palmital corn-based starch facility EXECUTIVE CHAIRMAN, ALEXIS DUVAL, COMMENTED ON THE COMPANY’S PERFORMANCE: "Year-on-year operational results improved despite challenging cereals and sugar prices and a slower than expected ramping up of the gluten production in Lillebonne plant, mainly thanks to progress in the sugarcane division both in Brazil and Africa. Looking forward, our sugarcane division will continue to benefit from our investments in cogeneration as well as higher volumes. In the cereals division, Lillebonne plant utilization rate now exceeds 80% of its capacity. In Brazil, Palmital corn-based starch production facility started in this quarter in line with our forecast and will allow us to develop our sales on the Brazilian starch market. In China, our Dongguan greenfield is progressing and will, together with our recent investment in the Tieling plant, position us to size market opportunities in the growing domestic market." São Paulo, August 14th , 2013 - Tereos Internacional (BM&FBOVESPA: TERI3), one of the world’s leading producers of sweeteners and bioenergy through its sugarcane and cereal/tubers processing activities, reports first quarter results ended on June 30th , 2013. The Company’s financial statements were prepared in accordance with International Financial Reporting Standards (IFRS).
  • 2 MAJOR REPORTING CHANGES  Beginning on April 1st, 2013, Tereos Internacional’s financial statements and results presentation will be adjusted for the following practices and, for comparability purposes, prior year results will be presented on a pro-forma basis, applying the new practices retrospectively. o Accounting  Adoption of IFRS 11 (Joint Arrangements): all joint ventures are no longer consolidated proportionally in Tereos Internacional’s balance sheet, income statement and cash flow statement. JVs are now consolidated under the equity method and the impact on the income statement will be limited to the share of profit in associates line. o Operational  Intersegment elimination: Segmental information, in the appendix to the accounts, is now presented on a stand-alone basis (ie. including intra-group sales) as well as on a contributive basis (ie. only external sales). Revenues presented in this document and in the external communication remain on a contributive basis.  Change of segmental classification due to Lillebonne’s diversification: given the beginning of the dextrose line at Lillebonne and considering that this plant’s profile is moving towards the production of food-related applications, all operational (e.g. volumes grinded) and financial figures (excluding alcohol & ethanol sales volumes) are now accounted for under the Starch & Sweeteners segment. Therefore, cereals grinded (and related co-products) in the Alcohol & Ethanol division are only made up of the DVO plant volumes.
  • 3 CONSOLIDATED RESULTS FINANCIAL AND OPERATING HIGHLIGHTS R$ Million Q1 2013/14 As Reported Q1 2012/13 As Reported Change As Reported Change At Constant Currency1 Net Revenues 1,908 1,622 +17.6% +11.4% Adj. EBITDA Adj. EBITDA Margin 210 11.0% 134 8.3% +55.8% +47.3% Depreciation and Amortization -166 -152 +9.4% +7.2% EBIT EBIT Margin 47 2.5% -19 -1.2% -350.7% -432.5% Net Result(2)2 9 -45 -119.0% -120.3% Capex 238 332 -28.4% -30.8% Closing Rate (R$/Euro) 2.8822 2.5601 +12.6% - 1 Change at Constant Currency: amounts corresponding to the results reported for Q1 2012/13, calculated by the application of the exchange rate applied for Q1 2013/14. 2 Attributable to owners of the parent OPERATING AND FINANCIAL PERFORMANCE  Net revenues amounted R$1.9 billion, a 17.6% increase over last year’s first quarter, mainly a consequence of overall higher sales volumes for the entire sugarcane segment, higher prices in starch and sweeteners in Europe and positive FX impact, only partially offset by lower sugar prices in Brazil and lower ethanol volumes in Europe.  Adjusted EBITDA totaled R$209.5 million compared to R$134.5 million in Q1 12/13, a 55.8% year- on-year improvement. The sugarcane division in Brazil was the major driver of this improvement due to higher volumes, dilution of fixed costs and a positive accounting effect on COGS as a result of the delayed start of the crop. The cereal division margins remained under pressure due to the delayed impact of hedging positions on cereal costs, although profitability improved sequentially.  Net financial expenses totaled R$45.2 million compared to R$77.2 million in Q1 12/13. Interest expenses on a stand-alone basis were stable at R$48 million in Q1 13/14 versus R$47 million in the first quarter of last year.  Net profit of R$8.6 million compared to a net loss of R$45.2 million in Q1 12/13. BALANCE SHEET HIGHLIGHTS  Tereos Internacional’s total net debt (including related parties) was R$4.1 billion compared to R$3.3 billion in Q1 12/13. This was mostly due to the depreciation of the Real against the US Dollar and Euro on debt translation and partially related to higher seasonal inventories, currency impact on receivables and inventories, as well as payables cycles.  Total Net Debt/Adjusted EBITDA ratio this quarter stood at 4.7x versus 4.4x as of March 31st , 2013.  As of June 30th , 2013, 20% of gross debt was Real-denominated, 39% US Dollar-denominated, 39% Euro-denominated and 2% denominated in other currencies.
  • 4 SUGARCANE  BRAZIL: GUARANI FIRST QUARTER 2013/14 R$ Million Q1 2013/14 Q1 2012/13 Change Sugarcane crushed (’000 tonnes) 5,664 4,200 +34.9% Sugar production (’000 tonnes) 436 287 +51.9% Ethanol production (’000 m3 ) 155 117 +32.6% Net Revenues 461 392 +17.6% Selling & Logistic Expenses -37 -25 +46.2% General & Administrative Expenses -39 -36 +9.7% Other Net Operating Results 1 -1 -243.8% Depreciation and Amortization -110 -102 +7.1% EBIT 18 -68 -126.7% EBIT Margin 4.0% -17.5% - Adjusted EBITDA 125 38 +226.5% Adjusted EBITDA Margin 27.2% 9.8% - CAPEX 122 147 -17.0% Sugarcane Crushing The 2013/14 crop started in mid-April for most part of Guarani industrial plants. The drier-than-usual climate conditions in the quarter favored the harvesting, despite the rainy weather in May, leading to an increase in the number of days of crushing, from 44 days last year to 59 days this quarter. The accumulated rainfall until June, 2013 reached 929 mm compared to 1,291 mm in the previous year and 1,488 mm of the 10-year average for the period. This combined with the renewal/expansion program of sugarcane fields performed by Guarani in the last 2 crops, led to an increase in sugarcane crushing of 34.9% to 5.7 million tonnes in Q1 13/14. Agricultural yields improved from 88 tonnes/ha in Q1 12/13 to 95 tonnes/ha in this quarter (+8.0%), with the sugar content in the raw material up from 122.5 kg/tonne to 127.4 kg/tonne (+4.0%). 4,2 5,7 Q1 12/13 Q1 13/14 48 13743 10 Q1 12/13 Q1 13/14 Own Sales Trading 107 134 Q1 12/13 Q1 13/14 240 303 Q1 12/13 Q1 13/14 Energy Sales (‘000 MWh) Ethanol Sales (‘000 m³) Sugar Sales (‘000 tonnes) Sugarcane Crushing (MM tonnes) +34.9% YoY +26.3% YoY +32.6% YoY +61.5% YoY
  • 5 It is worth mentioning that no sugarcane field area nearby Guarani’s region was impacted by the recent frosts experienced in the Center-south of Brazil. Therefore, as weather conditions remain favorable in the region, Guarani expects, together with its investment program to add industrial capacity, to have a record sugarcane crushing of c. 18.5 million tonnes (excluding the JV contribution of Vertente and equivalent to c. 20 million tonnes on a full consolidation basis). Production As a consequence of the above-mentioned factors, total production reached 719,000 tonnes (measured in TRS terms), an increase of 44.4% compared to Q1 12/13. Both sugar and ethanol production posted double-digit growth year-on-year, increasing respectively 51.9% to 436,000 tonnes and 32.6% to 155,000 m3 . In light of the Company’s sugar sales commitments, production mix was primarily driven to sugar production in the quarter (63% in Q1 13/14 to 60% in Q1 12/13). At the end of the first quarter of 2013/14, inventory levels were higher for sugar and ethanol on a year-on-year basis, as indicated below: • Sugar inventories totaled 195,000 tonnes, a 66.8% increase compared to end Q1 12/13, representing 44.7% of the sugar production in the crop and, in the quarter, a book value of R$132.3 million. Refined sugar accounted for 43% of inventory volumes. • Ethanol inventories were 74,000 m³, representing 47.7% of the ethanol production in the crop and, in the quarter, a book value of R$78.2 million, a 15.6% increase on the same period in the previous crop. Anhydrous represented 45% of inventory volumes. Revenues Guarani’s revenues were favored by the positive volume impact from both sugar and ethanol sales and the positive ethanol price effect, while sugar prices negatively impacted revenues. Total revenues reached R$460.6 million in this quarter compared to R$391.8 million in Q1 12/13. Sugar revenues increased R$32.1 million to R$262.7 million in Q1 13/14 as a consequence of higher volumes sold (+26.2% to 303,000 tonnes or +R$64.7 million) and positive hedging impact (+14.7 million, from –R$15.9 million in Q1 12/13 to -R$1.1 million in Q1 13/14), despite negative impact of price decrease and mix (average selling price down -15.2% to R$870.9/tonne or -R$47.3 million). Ethanol revenues had a positive impact both of volumes (+25.2% to 134,000 m3 , or +R$30.7 million) and, to a lower extent, prices (+7.3% to R$1,221.4/m3 , or +R$11.2 million) which led to an increase from R$121.7 million to R$163.7 million in Q1 13/14, as Guarani started to benefit from the impact of recent government measures (ie. increased anhydrous blend ratio). For other revenues, energy sales increased R$7.2 million to R$21.5 million, on the back of better electricity volumes (+61.8% to 147 GWh) and slightly lower average prices (-7.3% to 147 R$/GWh) due to higher spot market volumes and prices in Q1 12/13. Revenues related to other products and services were R$12.4 million lower year-on-year to R$12.6 million in Q1 13/14, due to less planting/harvesting services rendered to suppliers. Gross Profit/Gross Margin Gross profit swung from a gross loss of R$6.4 million (-1.6% margin) in Q1 12/13 to a gross profit of R$93.0 million (20.2% margin) this quarter. This strong improvement in margin was a result of the above-mentioned higher volumes and the positive impact of dilution of fixed costs, coupled with a reduction in COGS also due to a positive accounting impact, partially related to the late start of crushing versus last year. To a lesser extent, PIS/COFINS tax cut and higher energy sales also impacted gross margin positively. Cost of goods sold decreased R$30.6 million year-on-year to R$367.6 million in Q1 13/14. This reduction was mainly driven by the accounting effects of: (i) delayed intercrop maintenance period directly impacting this first quarter (-R$16.9 million); and (ii) impact of fair value of biological assets (-R$7.7 million, from -R$5.5 million to +R$2.2 million). On the other hand, own agricultural costs increased R$8.3 million pushed by higher leasing and harvesting costs (volume and inflation), while industrial costs also increased R$8.3 million related to higher labor costs.
  • 6 SG&A Sugar sales for exports doubled, which was the main driver for increased logistic expenses by R$13.3 million to R$33.2 million. Out of this increase, R$9.4 million was explained by volume effect and R$3.5 million by higher unitary freight cost (+13.8%) due to the recent changes in legislation for road transportation and the strong competition for transportation with corn and soybean. Selling expenses, on the other hand, reduced R$1.6 million to R$3.6 million linked to lower commissions and advertising-related expenses. Guarani posted G&A expenses of R$39.4 million in this quarter versus R$35.9 million in Q1 12/13. The 9.7% increase was driven by annual salary increase and price revision on service contracts partially compensated by the cost reduction efforts undertaken in the 2012/13 fiscal year. As a percentage of net revenues, G&A expenses reduced from 9.2% in Q1 12/13 to 8.6% in this quarter. Other net operating revenues swung from a R$1.0 million loss to a R$1.5 million gain in Q1 13/14. Adjusted EBITDA Guarani’s EBITDA increased from R$38.3 million in Q1 12/13 to R$125.2 million in Q1 13/14, with margins of 9.8% and 27.2%, respectively. For comparison purposes with peers in the sector, if Guarani had booked tilling costs as CAPEX, Adjusted EBITDA for Q1 13/14 would have reached R$153.0 million, or a 33.2% margin on revenues. Capital Expenditures Investments performed by Guarani continue to slowdown as the investment plan announced by the Company is progressing. Out of the total amount to be invested, 74.6% was already performed by June, 2013. Capital expenditures reduced from R$146.9 million to R$122.5 million in this quarter. Investments breakdown this quarter was: (i) 39% for plantation, in accordance with the planting season in the beginning of the crop; (ii) 39% linked to acquisition of property, plant and equipment for the conclusion of the energy sales and crushing expansion program; and (iii) 22% related to maintenance.
  • 7  AFRICA/INDIAN OCEAN FIRST QUARTER 2013/14 R$ Million Q1 2013/14 As Reported Q1 2012/13 As Reported Change As Reported Change At Constant Currency Sugarcane crushed (’000 tonnes) 90 117 -22.7% - Sugar production (’000 tonnes) 9 10 -4.1% - Net Revenues 191 152 +25.7% +17.8% Selling & Logistic Expenses -11 -13 -14.9% -20.8% General & Administrative Expenses -18 -16 +15.5% +9.9% Other Net Operating Results 5 5 +2.1% +6.7% Depreciation and Amortization -11 -8 +37.3% +35.8% EBIT 16 11 +54.5% +35.2% EBIT Margin 8.6% 7.0% - - Adjusted EBITDA 27 16 +66.9% +51.0% Adjusted EBITDA Margin 14.0% 10.6% - - CAPEX 37 37 - - Sugarcane Crushing Sugarcane crushing operations in the Africa/Indian Ocean segment start later than in Brazil. While the sugarcane crushing period in Reunion Island runs from July to end-December, in Mozambique it runs from May to early-December. Therefore, this quarter crushing volume only relates to Mozambique and totaled 90,000 tonnes versus 117,000 tonnes in Q1 12/13. The drop in sugarcane crushed in Mozambique is explained mainly for the drop in agricultural yields from 63 tonnes/ha to 42 tonnes/ha in this quarter due to the effect of dry weather in the previous years and difficulties with irrigation. Looking forward, the consolidated crushing target remains c. 2.4 million tonnes for the 2013/14 crop. Production The higher sugar content (+7.2%) and polarization (+8.3%) in the sugarcane partially compensated the lower sugarcane crushing volume year-on-year, which resulted in a sugar production only slightly below last year (-4.1%). 67 77 Q1 12/13 Q1 13/14 117 90 Q1 12/13 Q1 13/14 Sugar Sales (‘000 tonnes) Sugarcane Crushing (‘000 tonnes) -22.7% YoY +16.3% YoY
  • 8 Revenues The segment experienced revenues improvement in both operations, basically on higher volumes in Indian Ocean, but also better prices in Mozambique. Net revenues increased 25.7% year-on-year to R$191.2 million, a R$39.0 million improvement over the same period of 2012/13. Out of the total revenues, sugar sales from Reunion Island accounted for 61% of the revenues while trading and other revenues in the island for 32% and the remaining 7% represented by the sugar sales in Mozambique. Revenues from Indian Ocean totaled R$179.1 million, an increase of R$38.1 million on better volumes (+R$20.1 million) tied to positive timing effect in sugar, positive currency effect (+R$10.5 million) and others revenues, including trading (+R$14.5 million), offset by lower prices (-R$7.0 million) on sales mix more oriented to non-refined sugar. In Mozambique, revenues increased slightly (+R$0.9 million) to R$12.1 million in Q1 13/14 as a result of better prices on the domestic market (+R$2.0 million) partially offset by lower volumes (-R$0.8 million) and FOREX impact (-R$0.3 million). Gross Profit/Gross Margin Consolidated gross profit increased year-on-year from R$35.1 million to R$41.3 million in Q1 13/14, although margins contracted from 23.1% and 21.6% in this quarter. This slight drop in margins is mainly explained by the sharp increase in trading sales in the Reunion Island operations, which carry lower margins, and low cost dilution in Mozambique due to the drop in production levels and negative impact of fair value of biological assets. It is worthy to mention that, while the Company cultivates 100% of the sugarcane crushed in Mozambique, Reunion Island crushing is entirely based on third-party suppliers, therefore the effect of the fair value of biological assets is only on COGS in Mozambique. SG&A Sugar sales in Mozambique are conducted by DNA, a joint-ownership of sugar producers in the country and selling and logistics expenses are incurred by the Company. With regards to Reunion Island, S&L expenses reduced 14.9% year-on-year to R$11.4 million driven mainly by a delay in refined sugar sales, as a consequence of a 19-day port strike in the island in May. G&A expenses remained stable year-on-year in the functional currencies, however due to the BRL devaluation, increased from R$15.7 million to R$18.2 million in Q1 13/14. Other operating expenses/revenues remained relatively stable (+2.1%) in the reporting currency totaling a gain of R$4.7 million in this quarter. Adjusted EBITDA Adjusted EBITDA increased from R$16.1 million to R$26.8 million in this first quarter, driven basically by the positive contribution of Indian Ocean results. Therefore, margins also increased from 10.6% to 14.0% in Q1 13/14. The main reasons to explain this increase were: (i) higher revenues in both operations; (ii) relatively stable operating expenses; and (iii) the strengthening of the Euro. Capital Expenditures Investments were stable year-on-year to R$37.1 million in Q1 13/14, basically allocated to planting and irrigation programs in Mozambique and maintenance programs in both operations given the inter- crop period.
  • 9 808 831 Q1 12/13 Q1 12/13 +2,9% YoY CEREAL  CEREAL CONSOLIDATED – OPERATIONAL FIGURES FIRST QUARTER 2013/14 (’000 tonnes or ’000 m3 ) Q1 2013/14 Q1 2012/13 Change Cereal grinding 831 808 +2.9% Tuber grinding 15 43 -64.1% Starch & Sweeteners sales 462 450 +2.6% Alcohol & Ethanol own sales 65 89 -27.5% Ethanol trading Tereos 61 70 -13.3% Co-products sales 320 305 +4.9% Cereal Grinding Consolidated cereal grinding amounted 831,000 tonnes in the first quarter, a 2.9% increase versus Q1 12/13. Tubers grinding amounted to 15,000 tonnes versus 43,000 tonnes in Q1 13/14, only related to manioc grinding at Syral Halotek. Starch & Sweeteners Sales Starch & Sweeteners sales volumes improved 2.6% year-on-year, as demand for glucose syrups remains solid and starch volumes continue to trend up, while volumes for specialties were slightly weaker in the quarter. This quarter the starch & sweeteners segment also benefited from a positive impact of additional capacity at Marckolsheim and additional dextrose volumes from Lillebonne in Europe. The trials of corn starch production at Palmital facility in Brazil also progressed satisfactorily and the commercialization of starch products has already begun, which will enhance second quarter volumes. Alcohol & Ethanol Sales Own sales volumes in this first quarter reached 58,000 m3 vs. 82,500 m3 in Q1 12/13, mostly due to the conversion of the Lillebonne plant with the start of the dextrose production this quarter and the ramping up of the gluten line which improved sequentially to over 80% capacity utilization. Ethanol trading sales reached 60,500 m3 in Q1 13/14 compared to 69,800 m3 in Q1 12/13, however increasing 19.2% sequentially. Co-products Sales Consolidated co-products sales volumes for the cereal division improved from 305,000 tonnes in Q1 12/13 to 320,000 tonnes in Q1 13/14, out of this quarter’s sales, 303,000 tonnes were sold by the Starch & Sweeteners division and 17,000 tonnes by the Alcohol and Ethanol division. 305 320 Q1 12/13 Q1 12/13 450 462 Q1 12/13 Q1 12/13 159 125 Q1 12/13 Q1 13/14 Cereal Grinding (‘000 tonnes) Starch & Sweeteners Sales (‘000 tonnes) Alcohol & Ethanol Sales (‘000 m3 ) Co-products Sales (‘000 tonnes) +2.6% YoY -20.8% YoY +4.9% YoY
  • 10  STARCH & SWEETENERS FIRST QUARTER 2013/14 R$ Million Q1 2013/14 As Reported Q1 2012/13 As Reported Change As Reported Change At Constant Currency Net Revenues 1,016 800 +27.0% +18.2% Selling & Logistic Expenses -95 -84 +13.3% +5.5% General & Administrative Expenses -56 -50 +12.5% +4.9% Other Net Operating Results 3 1 +178.1% +180.1% Depreciation and Amortization -35 -30 +16.4% +8.5% EBIT 15 37 -58.8% -61.7% EBIT Margin 1.5% 4.6% - - Adjusted EBITDA 51 67 -24.6% -29.9% Adjusted EBITDA Margin 5.0% 8.4% - - CAPEX 77 75 +2.7% - Revenues Net revenues rose in the first quarter by 27.0% year-on-year to R$1.0 billion, as a consequence of higher average prices (+9.7% overall, of which 5.6% on starch and sweeteners), foreign exchange impact due to the Euro strengthening versus the Real (+7.5%) and positive volume impact (+7.9%). The later is mostly due to additional capacity at Marckolsheim and to the start of the dextrose production in Lillebonne and the allocation of its co-products (ie. mostly gluten) to the Starch & Sweeteners segment revenues. Revenues from Starch & Sweeteners rose 15.4% year-on-year to R$663.8 million. Co-products revenues reached R$299.3 million versus R$190.0 million in Q1 12/13. Gross Profit/Gross Margin First quarter gross profit amounted to R$164.4 million, slightly below the R$170.5 million registered on Q1 12/13 due to the increase in cereal purchase price (delayed hedging impact) which was only partially reflected in selling prices. Moving forward, the Company expects a positive impact of lower wheat purchase price to be felt progressively. Gross profit margin stood at 16.1% vs. 21.3% in the first quarter of last year. SG&A In the first quarter, SG&A expenses totaled R$152.0 million compared to R$134.5 million in Q1 12/13, mostly due to FX impact and higher expenses associated to the dextrose and gluten production allocation to the segment. Selling and logistics costs went up 13.3% year-on-year, on a constant currency basis, to R$95.5 million, while G&A expenses were 12.5% higher year-on-year, on a constant currency basis, reaching R$56.5 million both also impacted by the dextrose integration, as explained above. Other net operating expenses/revenues amounted to R$2.9 million versus R$1.0 million in Q1 12/13.
  • 11 Adjusted EBITDA First quarter Adjusted EBITDA totaled R$50.6 million compared to R$67.1 million in Q1 12/13. However, it has improved sequentially compared to the R$36.9 million reported in Q4 12/13. Adjusted EBITDA margins decreased year-on-year to 5.0%, as margins continue to remain under pressure due to the delayed impact of hedging positions on cereal costs. Capital Expenditures Capital expenditures amounted to R$76.7 million in line with Q1 12/13 and slightly higher than the R$75.4 million reported in the Q4 12/13. The investments were mostly related to Syral in Brazil, Saragossa and Lillebonne dextrose line in Europe, and Syral China (Dongguan project).
  • 12  ALCOHOL & ETHANOL EUROPE FIRST QUARTER 2013/14 R$ Million Q1 2013/14 As Reported Q1 2012/13 As Reported Change As Reported Change At Constant Currency Net Revenues 240 279 -13.6% -19.6% Selling & Logistic Expenses -8 -9 -7.4% -13.9% General & Administrative Expenses -3 -9 -63.5% -66.1% Other Net Operating Results 0 1 -89.8% -90.5% Depreciation and Amortization -10 -11 -9.6% -15.9% EBIT -0 4 -110.8% -110.1% EBIT Margin -0.2% 1.4% - - Adjusted EBITDA 9 15 -35.9% -40.4% Adjusted EBITDA Margin 3.8% 5.3% - - CAPEX 1 73 -99.0% - Revenues Alcohol & Ethanol Europe segment’s revenues in Q1 13/14 dropped by 13.6% year-on-year to R$240.1 million, as better prices (+4.3%), on the back of improved ethanol Rotterdam prices, and currency effect (+7.5%) did not offset the impact of reduced ethanol volumes (-27.5%) due to the conversion of the Lillebonne plant to dextrose production this quarter and lower industrial capacity utilization at the plant, although the factory has progressed sequentially with capacity utilization reaching over 80% on average. Co-products revenues dropped to R$5.3 million compared to R$26.4 million in Q1 12/13 as a consequence of the allocation of dextrose production to the starch & sweeteners division. Gross Profit/Gross Margin The first quarter gross profit was R$11.1 million compared to R$20.9 million in Q1 12/13. Despite lower volumes, gross profit was also impacted by higher energy and input costs, given a higher portion of raw material was purchased at market price and the increase in cereal purchase prices. SG&A During the first quarter, SG&A expenses amounted to R$11.5 million compared to R$18.0 million in Q1 12/13. Selling and logistic expenses this quarter amounted to R$8.3 million, in line with the R$8.9 million reported in Q1 12/13, while G&A expenses in Q1 13/14 dropped to R$3.3 million versus R$9.0 million in Q1 12/13. Adjusted EBITDA Adjusted EBITDA totaled R$9.4 million compared to R$14.8 million in Q1 12/13 and better than R$0.4 million reported last quarter. Capital Expenditures Capital expenditures were R$1.3 million compared to R$72.6 million in Q1 12/13, as most of the investments related to the gluten production and new dextrose line at Lillebonne are finished and no longer allocated to this segment.
  • 13 RECENT DEVELOPMENTS AND OUTLOOK  RECENT CORPORATE DEVELOPMENTS  In June 2013, the Company’s Board of Directors approved an extraordinary distribution of the retained earnings as dividends in the total amount of R$37.8 million equivalent to R$0.0462 per common share. The distribution of dividends was made on June 25th , 2013, taking as a basis the shareholding position on June 12th , 2013.  In July 2013, Tereos Internacional and Wilmar Group have received most of the Chinese regulatory approvals to complete the acquisition of an interest in the Tieling corn-based starch joint-venture.  In July 2013, the Company’s Annual General and Extraordinary Meeting approved the reelection of the current members of Tereos Internacional’s Fiscal Board.  In August 2013, Alberto Pedrosa was appointed as Guarani’s Chief Executive replacing Jacyr Costa, who was previously appointed member of Guarani’s Board of Directors, and member of the Executive Committee of Tereos, representing the group’s sugarcane division.  OUTLOOK FOR 2013/14 Cereals  Moving forward with expansion projects: o China: Engineering and equipment purchases mostly done at Dongguan, while civil works are underway o Brazil: production of corn-based glucose at Palmital expected for Q2 13/14  Positive impact of lower wheat purchase price to be felt progressively in Q2 13/14  Benefit of diversification projects in Europe (Saragossa and Lillebonne) to come through progressively in the year Sugarcane  Renewal/expansion program of previous years has reduced average age of sugarcane to 3.3 years  No impact of frosts experienced in Center-South region of Brazil and crushing estimates maintained at c. 18.5 million tonnes (adjusted for JVs, and equivalent to c. 20 million tonnes on a full consolidation basis)  Full benefit of higher industrial utilization rates to dilute fixed costs, despite lower sugar prices  Positive contribution of higher cogeneration (expected to double Y-o-Y) and PIS/COFINS tax cut  Guarani 2015/16 program led by recently appointed new CEO
  • 14 MARKET RISK MANAGEMENT Tereos Internacional manages its financial risks at the level of each subsidiary or centrally based on the type of transaction. Market risks are managed through the use of derivative instruments in accordance with the Company’s procedures. Interest rate: The exposure to interest rate risk is generated primarily by the borrowings at floating rates which impact future financial results. The Company’s objective is to minimize the exposure of its subsidiaries to the risk of an increase in interest rates. As such, Tereos Internacional uses derivative instruments in form of vanilla swaps, options and, to a lesser extent, structured products. Interest rate hedge policy is defined at Group level. Transactions are negotiated and approved centrally for Europe and locally for Brazil according to the Company’s procedures. Foreign exchange: The international operations of Tereos Internacional generate cash flows in several currencies. To hedge exposures to the foreign exchange risk, the Company uses derivative instruments, primarily outright forward contracts maturing in less than 12 months and USD borrowing to cover foreign exchange variation on sugar sales. Foreign exchange hedge policy is defined at the Group level. Commodities: To hedge its commodities prices risk, several entities of Tereos Internacional, depending on their activities, may buy and sell commodities future/forward contracts. The commodities negotiated are: raw (Contract Nº 11 at New York futures market) and white sugar (Contract Nº 407 at London futures market) for Guarani, representing its final products, and wheat and corn (negotiated at Matif Futures Exchange in Paris) for Tereos Syral, representing the raw material base for the production of its final products. The commodities transactions are executed at subsidiaries’ level by market professionals in accordance with procedures established at Group level. Commodity Risk Committees are in place at Guarani and Tereos Syral level. Further details on market risk management are presented in the Interim Consolidated Financial Statements on the Company’s website.  COMMODITIES DERIVATIVES Cereal: Wheat and corn contracts normally represent a hedging ratio of 80% to 90% of total volumes purchased. Cereal derivatives represented 29% of total commodities derivatives on June 30th , 2013. The significant drop recently seen in wheat and corn prices directly affected the number of open futures contracts in the Company’s hedging position. The hedging position for cereals on June 30th , 2013 had a notional total amount of R$80 million and a fair value of -R$7 million. Sugar: Sugar derivatives represented 71% of total commodities derivatives on June 30th , 2013. The hedging position at the end of June, 2013 was a notional total amount of R$200 million and a fair value of R$26 million and represented, through futures and options, the following figures:  2013/14 crop: 398,000 tonnes at 19.9 USD cents/lb for raw sugar and 46,000 tonnes at 508.5 US$/tonne for white sugar;  2014/15 crop: 80,000 tonnes at 18.1 USD cents/lb for raw sugar.
  • 15 MARKET COMMENTARY  Sugar Fundamentals continue to cap prices During Q1 13/14, raw sugar prices remained under pressure as prospects of a fourth consecutive world surplus and a promising crop in Center/South Brazil are materializing. According to LMC International, 2013/14 world surplus (April/March basis) should stand around 5.1 million tonnes. This, combined with record short position held by funds and the weakening of the main exporters’ currencies, has combined to set a bearish tone for sugar prices. Since April 1st , raw sugar prices declined 6.7% from 17.7 to 16.4 USD cents/lb. Nevertheless, the 10.4% devaluation of the BRL against the USD during the same period contributed to increase Brazilian producers’ remuneration by 2.3% in local currency terms. Key factors to monitor during the coming months will be (i) Brazilian ethanol prices, which could contribute to minimize the world largest sugar producer’s output, and (ii) climatic conditions, which could affect crushing activity in the Southern Hemisphere and crops development in the Northern Hemisphere.  Starch & Sweeteners Cereal prices pressure sweeteners and derivatives selling prices During the first quarter of 2013/14 fiscal year, demand for glucose syrups continued to be solid. Prices started to decline with progressive incorporation of the preceding months' cereal price reduction. Starch volumes are trending up, even though prices are under higher pressure (especially industrial starches) with new capacities coming on stream in Europe. Demand for specialties resisted well over the quarter.  Alcohol & Ethanol Brazil and Europe benefited from stable to higher prices year-on-year; US production stimulated by the strong drop in cereal prices In Brazil, ethanol prices remained stable Y-o-Y, despite an increase in production, due to competitive parity (vs. gasoline) in the quarter. From April/2013 to July/2013, ethanol sales volumes in the Center- South of Brazil improved 28% Y-o-Y to 8.5 billion m3 due to higher anhydrous blend (25% as of May 1st ). Regarding ethanol market in Europe, Rotterdam T2 prices increased 7.9% year-on-year, but remained stable sequentially and averaged 640 €/m3 during the quarter. In the US, ethanol producers have benefited from declining cereal prices which contribute to improve margins and stimulate production. The market is now waiting for the government’s position on the Renewable Fuel Standard policy, which establishes renewable fuels mandates for the coming year. As far as grain alcohol is concerned, the market was impacted by both the sluggish EU economy and adverse climatic conditions (cold & rainy) during the quarter. Better climate conditions for the new crop, oversupply of sugar beet alcohol in Europe and imports from Pakistan and South America are pressuring most alcohol prices.
  • 16 APPENDIX 1 CONSOLIDATED STATEMENT OF OPERATIONS (R$ million) 3-month period ended June 30th , 2013 June 30th , 2012 Variation Revenue 1,908 1,622 17.6% Cost of sales (1,598) (1,402) 14.0% Gross profit 310 220 40.8% Distribution expenses (152) (132) 15.3% General and administrative expenses (120) (113) 6.4% Other operating income (loss) 9 6 62.4% Operating income 47 (19) -350.7% Net financial income (expense) (45) (77) -40.7% Net Financial Expenses (499) (645) -22.5% Net Financial Income 454 568 -20.1% Share of profit of associates 3 6 -54.5% Net income (loss) before taxes 5 (89) -105.2% Income taxes (4) 14 -124.6% Net Income (loss) 1 (76) -101.5% Attributable to non controlling interests (7) (31) -75.5% Attributable to owners of the parent 9 (45) -119.0%
  • 17 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (R$ million) June 30, 2013 Mar 31, 2013 Variation ASSETS Cash and cash equivalent 583 893 -34.7% Trade receivables 969 920 5.3% Inventories 1,173 1,014 15.7% Current financial assets with related parties 49 14 250.0% Other current financial assets 454 508 -10.6% Current tax assets 39 35 11.4% Other current assets 16 16 0.0% TOTAL CURRENT ASSETS 3,283 3,400 -3.4% Deferred tax assets 537 492 9.1% Biological assets 700 673 4.0% Available-for-sale financial assets 32 31 3.2% Non-current financial assets with related parties 28 45 - Other non-current financial assets 333 272 22.4% Investments in associates 322 298 8.1% Property, plant and equipment 4,433 4,094 8.3% Goodwill 1,285 1,273 0.9% Other intangible assets 51 82 -37.8% Other non-current assets 4 4 0.0% TOTAL NON-CURRENT ASSETS 7,725 7,264 6.3% TOTAL ASSETS 11,008 10,664 3.2% LIABILITIES AND EQUITY Short-term borrowings 2,053 1,819 12.9% Trade payables 813 1,060 -23.3% Current financial liabilities with related parties 81 35 131.4% Other current financial liabilities 430 403 6.7% Short-term provisions 7 6 16.7% Current tax liabilities 8 10 -20.0% Other current liabilities 22 56 -60.7% CURRENT LIABILITIES 3,414 3,389 0.7% Long-term borrowings 2,580 2,383 8.3% Deferred tax liabilities 115 125 -8.0% Provisions for pensions and other post employment benefits 54 47 14.9% Other long-term provisions 35 34 2.9% Non-current financial liabilities with related parties 47 36 30.6% Other non-current financial liabilities 348 340 2.4% Other non-current liabilities 55 50 10.0% NON-CURRENT LIABILITIES 3,234 3,015 7.3% TOTAL LIABILITIES 6,648 6,404 3.8% Capital 2,807 2,807 0.0% Earnings reserves 792 (109) - Accumulated other comprehensive income (137) 643 -121.3% EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 3,462 3,341 3.6% Non-controlling interests 898 919 -2.3% TOTAL EQUITY 4,360 4,260 2.3% TOTAL EQUITY AND LIABILITIES 11,008 10,664 3.2%
  • 18 CONSOLIDATED STATEMENT OF CASH FLOWS (R$ million) 3-month period ended June 30th , 2013 June 30th , 2012 Net income (loss) 1 (76) Adjustments to reconcile net income (loss) to cash provided by operating activities: Share of profit of associates (3) (6) Amortization, depreciation and changes due to harvest 166 152 Fair value adjustments on biological assets (4) 3 Fair value adjustments through financial result (1) (7) Other fair value adjustments through the statement of operations 1 1 Income tax expense (income) 4 (14) Net finance expenses 35 48 Impact of the changes in working capital (357) (93) of which decrease (increase) in trade and other receivables 56 (23) of which increase (decrease) in trade and other payables (321) (43) of which decrease (increase) in inventory (92) (27) Change in other accounts with no cash impact 1 6 Cash provided by (used in) operating activities (157) 14 Income taxes paid (18) (22) Net cash provided by (used in) operating activities (175) (8) Cash paid for the acquisitions, net of cash acquired (32) of which Teapar (18) of which Andrade (13) of which Granochart (1) Purchases of property, plant and equipment and intangibles assets (189) (308) Purchases of biological assets (50) (45) Acquisition of financial assets (11) 0 Change in loans and advances granted (7) 0 Grants received related to assets 1 0 Financing interest received 15 5 Proceeds from the disposal of property, plant and equipment and intangible assets 1 0 Proceeds from the disposal of financial assets 0 (1) Dividends received 38 30 Net cash provided by (used in) investing activities (202) (351) Borrowings issues 297 384 Borrowings repayments (127) (39) Financing interest paid (56) (61) Change in financial assets with related parties (13) (6) Change in financial liabilities with related parties 11 234 Dividends paid to equity holders of the parent (38) (48) Dividends paid to non-controlling interests (1) 0 Net cash provided by (used in) financing activities 73 464 Impact of exchange rate on cash and cash equivalents in foreign currency (27) (3) Net change in cash and cash equivalents, net of bank overdrafts (331) 102 Cash and cash equivalents, net of bank overdrafts at opening 481 363 Cash and cash equivalents, net of bank overdrafts at closing 150 465 Net change in cash and cash equivalents, net of bank overdrafts (331) 102
  • 19 APPENDIX 2 Below is the reconciliation between net result and EBITDA according to the CVM 527/12 instruction and Adjusted EBITDA as disclosed previously by the Company. Adjusted EBITDA is a measure of operating profitability used by the Board of Directors to (i) monitor and assess the results of its operating segments; (ii) implement its investments and resource-allocation strategy; and (iii) measure the performance of its executive directors. Adjusted EBITDA is not a financial or accounting measure defined by IFRS or accounting practices adopted in Brazil as a measurement of financial performance and may not be comparable to other similarly-titled indicators used by other companies. Adjusted EBITDA is provided as additional information only and should not be considered as a substitute for net cash provided by operating activities, operating income or net income. (R$ million) For the 3-month period ended June 30th , 2013 June 30th , 2012 Net Result 1 (76) Income taxes 4 (14) Net financial expenses 45 77 Amortization, depreciation and change due to harvest expenses 166 152 EBITDA (according to CVM 527/12 instruction) (1) 216 139 Shares of profit of associates 3 6 EBITDA (as per company definition before CVM 527/12 instruction) (2) 213 133 Fair value of biological assets (4) 3 Fair value of financial instruments 0 (1) Non-recurring Items 0 0 Adjusted EBITDA(3) 210 134 (1) EBITDA calculated in accordance with CVM 527/12 instruction, which includes share of profit of associates. EBITDA corresponds to net income (loss) adjusted by net financial expenses, income taxes, amortization, depreciation and change due to harvest expenses (2) EBITDA presented by the Company excluding the share of profit of associates. (3) Adjusted EBITDA corresponds to EBITDA in accordance with CVM 527/12 instruction excluding accounting effect of adjustments in fair value of the financial instruments, in fair value of biological assets and non-recurring items (mainly disposal of assets), and the shares of profit of associates.
  • 20 FIRST QUARTER 2013/14 HIGHLIGHTS R$ Million Q1 2013/14 As Reported Q1 2012/13 As Reported Change As Reported Change At Constant Currency NET REVENUES Sugarcane Brazil Africa/Indian Ocean Cereal Starch & Sweeteners Alcohol & Ethanol Europe Holding 1,908 652 461 191 1,256 1,016 240 0.7 1,622 544 392 152 1,078 815 279 1.0 +17.6% +19.8% +17.6% +25.7% +16.5% +27.0% -13.6% -33.1% +11.4% +17.6% +17.6% +17.8% +8.4% +18.2% -19.6% -37.7% EBITDA (BEFORE CVM 527/12)(2) Sugarcane Brazil Africa/Indian Ocean Cereal Starch & Sweeteners Alcohol & Ethanol Europe Holding 213 156 128 28 60 51 9 -3 133 53 34 19 82 67 15 -2 +60.2% +195.1% +277.8% +66.9% -26.9% -24.9% -35.9% +35.9% +51.4% +186.4% +277.8% +51.0% -32.0% -30.2% -40.4% +35.1% EBITDA (AFTER CVM 527/12)(1) Sugarcane Brazil Africa/Indian Ocean Cereal Starch & Sweeteners Alcohol & Ethanol Europe Holding 216 153 125 28 66 55 11 -3 139 44 26 19 97 74 23 -2 +55.3% +243.2% +388.6% +47.0% -31.6% -25.8% -50.2% +35.9% +46.1% +231.3% +388.6% +35.5% -36.3% -31.0% -53.5% +35.1% ADJUSTED EBITDA (3) Sugarcane Brazil Africa/Indian Ocean Cereal Starch & Sweeteners Alcohol & Ethanol Europe Holding 210 152 125 27 60 51 9 -3 134 54 38 16 82 67 15 -2 +55.8% +179.3% +226.5% +66.9% +26.7% -24.6% -35.9% +35.9% +47.3% +170.9% +226.5% +51.0% +31.8% -29.9% -40.4% +35.1% (1) EBITDA calculated in accordance with CVM 527/12 instruction, which includes share of profit of associates. EBITDA corresponds to net income (loss) adjusted by net financial expenses, income taxes, amortization, depreciation and change due to harvest expenses (2) EBITDA presented by the Company excluding the share of profit of associates. (3) Adjusted EBITDA corresponds to EBITDA in accordance with CVM 527/12 instruction excluding accounting effect of adjustments in fair value of the financial instruments , in fair value of biological assets and non-recurring items (mainly disposal of assets), and the shares of profit of associates.
  • 21 APPENDIX 3 1. Breakdown per segment – 3-month period As of June 30th , 2013 (R$ million) 3-month period Alcohol & Ethanol Europe Starch & Sweeten ers Brazil Africa Indian Ocean Holding Eliminati ons Total Revenue 247 1,096 461 12 179 1 (88) 1,908 Internal Sales (7) (80) (1) 88 0 External Sales 240 1,016 461 12 179 1,908 Gross profit 11 164 93 (9) 50 - - 310 Selling Expenses (8) (95) (37) - (11) - - (152) G&A Expenses (3) (56) (39) (6) (12) (3) - (120) Other Operating Income (Expenses) 0 3 1 0 4 (0) - 9 Operating income 0 15 18 (15) 31 (2) 0 47 Share of profit of associates 3 Net financial result (45) Income taxes (4) Net Income - - - - - 1 Operating assets 1,143 3,362 5,079 404 837 183 - 11,008 Operating liabilities 250 1,540 2,713 499 377 1,269 - 6,648 Investment in associates 15 210 60 0 37 - - 322 Capital expenditure 1 77 122 5 32 - - 238 Depreciation of PPE, change due to harvest and amortization for intangible assets (10) (35) (110) (4) (7) (0) - (166) As of June 30th , 2012 (R$ million) 3-month period Alcohol & Ethanol Europe Starch & Sweeten ers Brazil Africa Indian Ocean Holding Eliminati ons Total Revenue 278 815 392 11 141 1 (16) 1,622 Internal Sales (15) (1) 16 0 External Sales 278 800 392 11 141 (0) 0 1,622 Gross profit 21 171 (6) (8) 43 1 (1) 220 Selling & Logistic Expenses (9) (84) (25) - (13) - - (132) G&A Expenses (9) (50) (36) (5) (11) (3) 1 (113) Other Operating Income (Expenses) 1 1 (1) 0 4 0 - 6 Operating income 4 37 (68) (12) 23 (2) (0) (19) Share of profit of associates 6 Net financial result (77) Income taxes 14 Net Income - - - - - (76) Operating assets 978 3,034 5,015 362 857 418 - 10,664 Operating liabilities 304 1,557 2,564 449 448 1,082 - 6,404 Investment in associates 10 183 65 0 40 - - 298 Capital expenditure 73 75 147 8 29 - - 332 Depreciation of PPE, change due to harvest and amortization for intangible assets (11) (30) (102) (5) (3) (0) - (152)
  • 22 2. Net revenues, Sales & Average Prices – 3 month period Net Revenues - 3 months period (R$ million) June 30th , 2013 June 30th , 2012 Variation Starch & Sweeteners 1,016 100% 800 100% 27.0% Starch and sweeteners 664 65% 575 72% 15.5% Co-products 299 29% 190 24% 57.4% Other 53 6% 35 4% 51.4% Alcohol & Ethanol Europe 240 100% 279 100% -14.0% Ethanol 222 92% 245 88% -9.4% Co-products 5 2% 26 9% -80.8% Other 13 6% 7 3% 85.7% Brazil 461 100% 392 100% 17.6% Sugar 263 57% 231 59% 13.9% Ethanol 164 36% 122 31% 34.4% Other 34 7% 39 10% -13.3% Indian Ocean 179 100% 141 100% 27.3% Sugar 117 66% 97 69% 21.0% Other 62 34% 44 31% 41.3% Mozambique 12 100% 11 100% 14.5% Sugar 12 100% 11 100% 14.5% Holding 1 - 1 - -33.1% Total Net Revenue 1,908 100% 1,622 100% 17.7% Volumes ('000 tonnes) & ('000 m3 ) June 30th , 2013 June 30th , 2012 Variation Starch & Sweeteners Starch and sweeteners 461.8 449.9 2.6% Co-products 303.6 246.8 23.0% Alcohol & Ethanol Europe Ethanol 125.0 158.8 -21.3% Co-products 16.6 58.3 -71.6% Brazil Sugar 303.0 240.0 26.2% Ethanol 134.0 107.0 25.2% Indian Ocean Sugar 70.2 58.8 19.4% Mozambique Sugar 7.2 7.7 -6.9% Net Prices R$/tonne & R$/m3 June 30th , 2013 June 30th , 2012 Variation Starch & Sweeteners Starch and sweeteners 1,437 1,279 12.4% Co-products 986 770 28.1% Alcohol & Ethanol Europe Ethanol 1,776 1,542 15.2% Co-products 322 452 -28.9% Brazil Sugar 867 961 -9.8% Ethanol 1,221 1,138 7.3% Indian Ocean Sugar 1,672 1,650 1.3% Mozambique Sugar 1,734 1,410 23.0% Notes: 1. including hedging effect
  • 23 3. Financial Income (Expenses) (R$ million) 3-month period ended June 30th , 2013 June 30th , 2012 Interest Expenses (48) (47) Fair value loss on trading derivatives (2) (3) Recycling loss from CFH reserve to Income statement (0) 0 Fair value loss on borrowings at fair value through income statement (0) (0) Foreign exchange losses (446) (590) Other financial expenses (3) (5) Financial Expenses (499) (645) Interest Income 0 0 Fair value gain on borrowings at fair value through income statement 0 0 Fair value gain on trading derivatives 3 9 Recycling gain from CFH reserve to Income statement 0 1 Foreign exchange gains (net of forex losses) 435 554 Other financial income 16 4 Financial Income 454 568 Net Financial Income (Expenses) (45) (77) 4. Net Debt Net Debt (R$ million) June 30, 2013 Mar 31, 2013 Variation Current 2,064 1,829 12.8% Working capital 204 164 24.4% Securization 286 169 69.2% Investment financing 793 745 6.4% Export pre-financing 781 751 4.0% Non-current 2,595 2,399 8.2% Working capital 5 10 -50.0% Securization 7 7 Investment financing 1,609 1,512 6.4% Export pre-financing 974 870 12.0% Amortized cost (26) (26) 0.0% Total Gross Debt 4,633 4,202 10.3% In € 1828 1596 14.5% In USD 1832 1688 8.5% In R$ 921 882 4.4% Other currencies 78 62 25.8% Cash and cash Equivalent (583) (892) -34.7% Total Net Debt 4,050 3,310 22.4% Related parties net debt 51 13 308.5% Total Net Debt + Related parties 4,101 3,322 23.5%
  • 24 FINANCIAL CALENDAR Conference Call in Portuguese – Translation Conference Call in English Date: Thursday, August 15th , 2013 8h00 am (New York) – 9h00 am (Brasília) Phone: +55 (11) 3728-5971 Code: Tereos Internacional Replay: +55 (11) 3127-4999 Code: 77901708 Date: Thursday, August 15th , 2013 8h00 am (New York) – 9h00 am (Brasília) Phone: +1 (516) 300-1066 Code: Tereos Internacional Replay: +55 (11) 3127-4999 Code: 46164781 FOR FURTHER INFORMATION, PLEASE CONTACT Marcus E. Thieme Investors Relations Officer Felipe F. Mendes Investors Relations Manager Phone: +55 (11) 3544-4900 ri@tereosinternacional.com