Acucar Guarani Q2 09/10 earnings presentation

1. Q3 09/10 Results
February 12th, 2010

2. Disclaimer
This presentation contains forward-looking statements related to the prospects of our business and estimates for
operating and financial results. Those related to growth prospects of Açúcar Guarani S.A. are merely projections and,
as such, based exclusively on the expectations of the management concerning the future of the business. Such
forward-looking statements depend substantially on changes in market conditions, government regulations,
competitive pressures, the performance of the Brazilian and international economies and the industry and are
therefore subject to change without prior notice.

3. Key Financial Highlights
Strong overall performance, impacted by drop in Mozambique
Record 9M Net Revenues: +14.3% (+1.3% quarter-on-quarter) on higher sugar and ethanol prices
Adjusted EBITDA: +8.2% (YTD basis) to R$208.3 million
Brazilian operation with a 23.8% Adjusted EBITDA margin in 9M and 30.1% in Q3 09/10
Net profit of R$15.7 million
R$ 80.3 million Net Profit in Brazilian operations
R$ 64.6 million loss in Mozambique (lower production and currency depreciation)
Net debt at R$1.1 billion: decrease of 12.8% compared to the same period last year
Positive outlook
Domestic prices
Higher sugar production
Increase of cogeneration
Higher own sugarcane
3

4. Key Financial Highlights
Strong overall performance, impacted by drop in Mozambique
Q3 YTD YTD Brazil1
R$ Million
09/10 08/09 09/10 08/09 09/10 08/09
Revenues 363.8 359.1 970.7 849.2 928.9 802.4
Adjusted EBITDA 93.5 116.0 208.3 192.5 220.7 174.4
EBITDA Margin 25.7% 32.3% 21.5% 22.7% 23.8% 21.7%
Net Income 1.8 (113.0) 15.7 (241.4) 80.3 (240.1)
Net Margin 0.5% -31.5% 1.6% -28.4% 8.6% -29.9%
CAPEX 44.3 37.1 109.3 183.2 87.5 177.4
Net Debt 1,101.5 1,263.0 1,101.5 1,263.0 935.1 1,124.5
Note: (1) ex-Mozambican operations
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5. Key Business Highlights – Q3 09/10 Sugar Market Overview
Strong world prices and growth in Brazilian exports
World sugar prices at their highest levels in 28 years
Strong sugar prices, supported by forecasts of a continued imbalance between world supply and demand and by
reduced inventory levels
poor crop in India and eastern Africa (Mozambique)
rains in Brazil, with reduced sugar content on sugarcane
Domestic prices higher than international prices due to lower than expected Brazilian production of white/refined sugar
Increase in Brazilian exports, with India as main destination
Guarani’s Sugar
Prices (R$/ton)
1000
800
600
400
Q1 07/08
Q2 07/08
Q3 07/08
Q4 07/08
Q1 08/09
Q2 08/09
Q3 08/09
Q4 08/09
Q1 09/10
Q2 09/10
Q3 09/10
Note: Actual average price net of taxes
5

6. Key Business Highlights – Q3 09/10 Ethanol Market Overview
Higher prices and strong domestic demand during the year
Significant appreciation of ethanol prices due to lower product output
Continued growth in domestic consumption, supported mainly by the growth of the flex fuel fleet and strong car sales
Limited impact of the 20% reduced blending (300,000 m³)
Price increases in all other major markets, such as US and European Union
Guarani’s Ethanol
Prices (R$/m³)
1000
800
600
400
Q1 07/08
Q2 07/08
Q3 07/08
Q4 07/08
Q1 08/09
Q2 08/09
Q3 08/09
Q4 08/09
Q1 09/10
Q2 09/10
Q3 09/10
Note: Actual average price net of taxes
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7. Sugarcane Crushing
Heavy rains in Brazil and drought in Mozambique
Sugarcane crushing reduced by 2.2% in 9M 09/10, mainly due to:
Drought in Mozambique, resulting in 0.2 million tons less sugarcane crushed
Heavy rains in Brazil resulting in 0.1 million tons less sugarcane crushed
Current production of TRS reduced by 11.0% compared to 9M 08/09, mainly due to a decrease of 6.6% in the sugar content
measured in TRS, although yields have increased by 14.8% to 93 ton/ha
Sugarcane from 3rd parties represented 72.5% of the total crushing in 9M 09/10
Sugarcane processing to resume on March, 2010 on three of Guarani industrial plants
Sugarcane Crushed (MM t) Sugarcane Crushed (MM t)
9M 09/10 Q3 09/10
14.4 4.2 4.1
14.1
2.7
10.3 10.2 3.1
4.1 1.5
3.9 1.0
9M 08/09 9M 09/10 Q3 08/09 Q3 09/10
Own 3rd Party Own 3rd Party
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8. Sugar and Ethanol Production
Impact of poor sugar content on sugarcane due to rainfalls
Sugar production fell by 15.2% in 9M 09/10 impacted by lower sugar content (TRS) in the sugarcane, while ethanol reduced by
4.8%
Priority on crystal and refined sugar due to higher margins. Refining operations to continue during the inter-crop
Mix with 56% sugar and 44% ethanol
Increase of own sugarcane for next crop
Sugar Production (’000 t) Ethanol Production (’000 m³)
9M 09/10 9M 09/10
1,154 496 472
149 979
71
512 385 355
453
493 455
111 117
9M 08/09 9M 09/10 9M 08/09 9M 09/10
Ref ined Crystal VHP Anhydrous Hydrous
8

9. Net Revenues
Record YoY net revenues driven by higher prices
Net revenues rose 14.3% to R$970.7 million in 9M 09/10 and 1.3% to R$363.8 million in Q3 09/10
Sugar revenues rose by 10.2% in Q3 09/10 with a 35.2% price increase and a 18.5% volume decrease
Ethanol revenues increased by 17.7% in Q3 09/10 with a 21.0% price increase to R$916.3/m³
Focus on domestic market to benefit from higher prices:
Sugar: 64.7% domestic market and 35.3% export
Ethanol: 95.1% domestic market and 4.9% export
Net Revenues (R$ MM) Net Revenues (R$ MM)
9M 09/10 Q3 09/10
971
849 67
73 359 364
271 14
22
272 93 110
632
504 245 240
9M 08/09 9M 09/10 Q3 08/09 Q3 09/10
Sugar Ethanol Others
Sugar Ethanol Others
9

10. Adjusted EBITDA
Impacted by higher prices in Brazil and lower operations in Mozambique
Adjusted EBITDA: R$93.5 million and 25.7% Adjusted EBITDA margin in Q3 09/10 vs. 32.3% in Q3 08/09:
In Brazil: Positive impact of higher prices and reduced costs of own sugarcane, offset by increased third
party sugarcane costs based on CONSECANA and lower sugar content. Adjusted EBITDA Margin of
30.1%
In Mozambique: -R$9.8 million Adjusted EBITDA, affected by reduced volume of crushed sugarcane
In Q3 09/10, negative hedging effect of R$15.0 million vs. a positive R$12.9 million in Q3 08/09, due to higher
sugar prices
YTD basis: R$208.3 million Adjusted EBITDA and 21.5% margin
For Brazilian operations alone, Adjusted EBITDA of R$220.7 million and 23.8% Adjusted EBITDA margin
Adjusted EBITDA (R$ MM)
9M 09/10
280,0 22.7% 25,0%
21.5% 23,0%
230,0 21,0%
19,0%
180,0 18.2 17,0%
15,0%
130,0 13,0%
220.7 11,0%
80,0 174.3 9,0%
7,0%
30,0 5,0%
3,0%
-20,0 1,0%
(12.4)
9M 08/09 9M 09/10
Brasil Moçambique Margem EBITDA Ajustado
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11. Net Results
Return to net profit despite loss in Mozambique
YTD net profit of R$15.7 million vs. net loss of R$241.4 million in 9M 08/09, including R$80.3 million profit in Brazil
Offset by:
Net loss in Mozambique of R$64.6 million caused by reduction in production and non-cash currency depreciation
Net Profit (R$ MM)
Q3 and 9M 09/10
41.7 80.3
(39.9)
(64.6)
R$1.8
million Consolidated
R$15.7 Net
million Profit
Q3 09/10 9M 09/10
Mozambique Brazil
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12. Net Debt
At R$ 1.1 billion
Net debt of R$1.1 billion as of December, 2009 representing 2.4% increase over previous quarter due to:
Higher working capital reflecting Guarani’s normal business cycle to increase inventories
Net debt/Adjusted EBITDA ratio stood at 4.5x on December, 2009 vs. 4.0x on September, 2009 due to seasonality of the
business
Short-term debt represented 55.4% of total net debt (excluding intercompany loans)
Debt in foreign currencies totaled R$758.4 million, equivalent to 68.9% of total net debt
Effective average interest rate in Q3 09/10 of 7.7%
Net Debt per Currency Net Debt per Term
BRL Non-
31% Current
45%
Foreign Current
Currency 55%
69%
Note: Includes debt related to SHL in Mozambique Note: Excludes intercompany loans. Net of cash & cash equivalents
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13. CAPEX
Increased sugarcane crushing and sugar production capacity
… to take advantage of higher sugar prices:
Increase of Tanabi’s crushing capacity from 1.4 million tons during this crop to 1.7 million tons for next crop and a
new sugar factory to allow the plant to produce 100,000 tons of sugar
São José plant to increase capacity to 3.2 million tons of sugarcane crushed with a 50,000 tons increase in sugar
production. Expected growth in energy sold to the grid
Increase of mechanical harvesting and planting capacity as well as to improve field yields
Increase of plantation area in Mozambique and irrigation to ensure sugarcane availability
Cogeneration in Andrade plant
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14. Mozambique
Investing to increase yields
Total renovation of sugarcane fields by 2011/12 (15,900 ha)
Extension of irrigation to a further 5,000 ha (total of 10,000 ha in 2012)
1,500 ha in 2010
1,600 ha in 2011
1,900 ha in 2012
Refinancing of debts in 2010 to restructure current financing in
South African Rand
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15. Sugar Market Outlook
Prices supported by decrease in production and lower yields
Global demand may exceed production by 6 million tons in this world crop
Historically high prices to remain at least for 18 to 24 months
Future sugar prices to be adjusted according to weather at the start of the Brazilian crop and the next Indian crop starting
in October, 2010
Good prospects for white sugar prices with the expectation of a significant deficit both for refined and crystal sugars
Raw Sugar Prices (NY 11) World Sugar Balance
cents US$/lb cents R$/lb Inventories Production Consumption
Production/Consumption (MM ton)
28 Q109 Q209 Q309 Q409 Q110 Q210 Q310 50 60 180
45
24
Inventories (MM ton)
40 160
cents US$/lb
cents R$/lb 50
20 35
16 30 140
25 40
12
20 120
8 15
01-Jan-09
01-Jan-10
01-Jul-08
01-Jul-09
01-Apr-08
01-Apr-09
01-Oct-08
01-Oct-09
30 100
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10E
Source: ICE Source: LMC
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16. Ethanol Market Outlook
Strong consumption and prices expected for Q4 09/10 and next crop
Domestic market:
Ethanol prices supported by lower stocks than in previous crop
Strong flex fuel vehicle sales – currently 85% of all vehicle sold – will be a key driver for ethanol consumption growth
International market:
Higher prices in US and EU suggest a possible window for Brazilian exports from the beginning of next crop
Although world production has increased, supply will struggle to meet demand because of record sugar prices that favour
sugar production
Hydrous and Anhydrous Ethanol Vehicles Sales per Fuel Type
Prices (SP State) (Brazil)
Hydrous Anhydrous
1,25
Q109 Q209 Q309 Q409 Q110 Q210 Q310
Ethanol + Flex-Fuel Gas + Diesel
1,15 350
Q109 Q209 Q309 Q409 Q110 Q210 Q310
1,05 300
R$/liter
0,95 250
'000 units
0,85 200
0,75 150
0,65 100
0,55 50
01-Jan-09
01-Jan-10
01-Jul-08
01-Jul-09
01-Apr-08
01-Apr-09
01-Oct-08
01-Oct-09
0
Jul-08
Jul-09
Jan-09
Apr-08
Oct-08
Apr-09
Oct-09
Source: Esalq
Source: Anfavea
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17. Outlook
Guarani well positioned to seize market opportunities…
… and benefit from the positive market scenario:
Positive scenario for sugar prices for the 2010/11 crop due to higher demand than supply
Positive scenario for ethanol prices in Q4 09/10 due to lower supply and strong demand in Brazil. Prices for
next crop expected to be more stable, with more sugarcane derived to sugar production
Increased volumes of own sugarcane
Support from controlling shareholder Tereos for growth strategy
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18. Thank You!
Jacyr S. Costa Filho
CEO
Reynaldo F. Benitez
CFO and Investor Relations Officer
Alexandre L. Menezio
phone: +55 (11) 3544-4900
Investor Relations Manager
Felipe F. Mendes e-mail: ri@aguarani.com.br
Investor Relations Analyst
website: www.acucarguarani.com.br/ir
Renato N. Zanetti Neto
Investor Relations Analyst