3. Sugar:
Catch-up of Brazilian crop pace after Q1 rain delays
Expected surplus for 2012/13 world crop pressuring
international prices
Starch:
Despite drought in the US, corn prices fairing better than wheat
due to better crop yields than previously announced;
Record crop in Brazil and a bumper harvest in China
Wheat prices impacted by poor weather conditions in both
Northern and Southern hemispheres
Ethanol:
Gasoline prices at the pump continue to restrain domestic
ethanol prices in Brazil
Severe drought in the US impacting ethanol production also
supporting prices in the US & Europe, opening up opportunity
of exports from Brazil
Q2 2012/13 – Market Fundamentals
3 Source: Bloomberg
300
400
500
600
700
800
Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
NY#11 LIFFE #5
US$/MT
170
190
210
230
250
270
Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Corn Matif Wheat Matif
€/MT
400
500
600
700
800
700
1000
1300
1600
1900
Jul-11 Nov-11 Mar-12 Jul-12
Brazil ESALQ Europe Rotterdam
R$/m³ €/m³
4. +40 +18
+132
+95
Q2
2011/12
Brazil Indian
Ocean
Starch
Europe
Ethanol
Europe
Q2
2012/13
+120
+120 +36 +9
Q2
2011/12
Currency Volume Price & Mix Others Q2
2012/13
Q2 2012/13 – Revenues
Higher Volumes Across All Major Products Backed by Higher Prices in the European Activities
4
Net Revenues (R$ MM)
Improved crop prospects in Brazil (+12% to 18.2 - 18.4 million tonnes expected this year)
and Mozambique
Good sales volume performance in the quarter across most businesses
Impact of perimeter increase in cereals (Selby, Haussimont, Halotek) partially offset by
disruption of production due to the gluten start-up at BENP Lillebonne
Mixed price evolution: slight price pressure in Brazilian sugar and ethanol but strong price
increase in European ethanol
1,648
1,933
1,648
1,933
5. +46 +11
(3) (4) (1)
Q2
2011/12
Brazil Indian
Ocean
Starch
Europe
Ethanol
Europe
Holding Q2
2012/13
Q2 2012/13 - Adjusted EBITDA
Strong Quarter in Sugarcane; Raw Material Costs Impacting Cereals
5
Strong recovery in Brazilian sugarcane operations in Q2 on the back of increased
sales and lower input costs due to rising yields
Good profitability maintained in Indian Ocean
Benefit from increased sales in European operations not fully compensating for higher
cereal input costs and start-up related costs
Margin 16.2%
Adjusted EBITDA (R$ MM)
Margin 16.0%
264
313
6. 6
Other Key Developments
Capital injection of Petrobras Biocombustível at Guarani in October 2012
R$212.5 million proceeds contribute to Guarani’s capacity expansion plan.
PBio’s stake in Guarani increases from 31.4% to 35.8%
Nomination of a New Executive Committee
7. 99 91
151
115 99
40
40
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
374 375
249 251
401
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
7.8
2.6
4.7
8.1
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
Ethanol Sales (‘000 m³)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)
7
Crushing
Better climate conditions favored a catch-up in sugarcane crushing
8.1 million tonnes in Q2 12/13 (+3.5% Y-o-Y)
Yields improving from 70 t/ha to c. 80 t/ha this crop
YTD Production
Sugar: 1,036,000 tonnes 63% of mix (stable Y-o-Y)
Ethanol: 365,000 m³ 37% of mix
Cogeneration
Capacity increase on track to deliver a 50% growth in own production this crop
+7.2% YoY 0.0% YoY
Sugarcane Brazil – Production & Sales
Catch-up in Crushing Activity due to Better Weather
+3.5% YoY
Own Sales Trading
104 90 86
50
182
2
43
57
Q211/12
Q311/12
Q411/12
Q112/13
Q212/13
Energy Sales (‘000 MWh)
+75.0% YoY
Own Sales Trading
8. 502 542
(20)
+28
(9) 0
+40
Q2
2011/12
Price &
Mix
Volume Price &
Mix
Volume Others * Q2
2012/13
Sugarcane Brazil – Q2 Financials
Record Adjusted EBITDA Mostly due to Lower Agricultural Costs
* includes Cogeneration, Agricultural Products and Hedging
Key Figures
In R$ Million
Q2
2012/13
Q2
2011/12
Change
Revenues 542 502 +8%
Gross Profit 120 41 +196%
Gross Margin 22.2% 8.1%
EBITDA 176 115 +52%
EBITDA Margin 32.4% 23.0%
Adjusted EBITDA 155 109 +42%
Adjusted EBITDA Margin 28.7% 21.8%
Adjusted EBITDA: R$155 million
• EBITDA recovery in Q2 thanks to higher sales
and lower input costs (higher yields expected)
• Adjusted EBITDA Margin1 including tilling as
depreciation: 32.1%
Sugar: 73.7% of total net revenues
• Volumes increased +7.2% to 400,500 tonnes
• Prices down -2.6% Y-o-Y at 997.9 R$/tonne (ex-
heding)
Ethanol: 19.5% of total net revenues
• Volume sold remain stable at 98,500 m3, as sugar
production was favored
• Prices down -7.5% Y-o-Y at 1,074.9 R$/m3
Cogeneration: own energy revenues amounted
R$20.9 million (+44.7%)
8
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment,
Adjusted EBITDA would have reached R$173.9 million.
Net Revenues (R$ MM)
Sugar Ethanol
9. -2.8% YoY
Sugarcane Indian Ocean – Production and Q2 Financials
Good Profitability Maintained in Q2
9
Sugarcane Crushing (’000 t) Sugar sales (‘000 t)
Sugarcane crushing
• Stable Y-o-Y with slight delay in Reunion Island
• Larger crop expected in Mozambique (760,000 tonnes,
+8.6%)
Revenues +9% Y-o-Y
• Favorable commercial environment and increased volumes
in Mozambique sustained profitability
Adjusted EBITDA
• 18% increase in Adjusted EBITDA mainly reflecting currency
effect, despite energy costs and wage increases
1,304
1,173
43
116
1.267
Q211/12
Q311/12
Q411/12
Q112/13
Q212/13
+2.7% YoY
74 89 77 67 76
Q211/12
Q311/12
Q411/12
Q112/13
Q212/13
Revenue Breakdown by Product
Key Figures
In R$ Million
Q2
2012/13
Q2
2011/12
Change
Revenues 215 197 +9%
Gross Profit 39 46 -17%
Gross Margin 18.1% 23.6%
EBITDA 61 58 +5%
EBITDA Margin 28.5% 29.7%
Adjusted EBITDA 69 59 +18%
Adjusted EBITDA Margin 32.4% 30.0%
Sugar
Reunion
38%
Sugar
Mozambique
21%
Trading and
others 41%
10. Cereal Segment - Production and Sales
Increase in Grinding and Volumes Sold
Record grinding in Q2: +3.2% Y-o-Y at 968 k tonnes of cereals
• Starch & Sweeteners: +3.3% 744 k tonnes of cereals ground
+60 k tonnes of roots (Haussimont & Syral Halotek)
• Alcohol & Ethanol: +2.7% 224 k tonnes of cereals ground, of which 16 k tonnes higher
perimeter effect (Selby) despite stoppage at BENP
Lillebonne for gluten factory ramp-up
10
Cereal Grinding
(‘000 t)
Starch & Sweeteners
Sales (‘000 t)
+3.2% YoY +4.7% YoY
424
392
433
450 444Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
Co-products Sales
(‘000 t)
+7.8% YoY
110 109
134
110 109
26
62
61
70
51
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
136
171
194
180
159
Ethanol & Alcohol Sales
(‘000 m3)
+16.9% YoY
720 678 710 723 744
218 220 214 209 224
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
938 898 924 932 968
221 204 210 217 237
59 66 62 60
66
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Q2
12/13
281 270 272 277
303
Starch & Sweeteners Ethanol & Alcohol Own Sales Trading
Starch & Sweeteners Ethanol & Alcohol
11. Starch & Sweeteners – Q2 Financials
Higher Volume and Prices Improving Revenues
Key Figures
In R$ Million
Q2
2012/13
Q2
2011/12
Change
Revenues 847 715 +19%
Gross Profit 144 113 +27%
Gross Margin 17.0% 15.8%
EBITDA 60 72 -17%
EBITDA Margin 7.1% 10.1%
Adjusted EBITDA 58 61 -5%
Adjusted EBITDA Margin 6.8% 8.5%
11
Net Revenues (R$ MM)
+18.5%
Revenues: R$847 million, up 18.5%
• Higher volumes (+5.5% ) only partly due to perimeter effect (Halotek and Haussimont)
• Slight increase in average price
Adjusted EBITDA: R$58 million, down R$3 million
• Positive impact from increased volume offset by start-up costs (Halotek) and rising raw
material costs
715 847
+72
+39 +12 +10
Q2
2011/12
Currency Volume Price & Mix Others Q2
2012/13
12. Alcohol / Ethanol Europe – Q2 Financials
Revenues Benefitted from Higher Prices and Volumes Despite Delay in Gluten Ramp-up
Revenues: R$329 million, up 40%
• Increase in volumes (+15.6%) mainly due to Selby
start-up and higher trading sales
• Prices significantly up (+17.5%) due to impact of US
drought on international prices
Adjusted EBITDA: R$33 million, down 10%
• Higher proportion of wheat purchased at market
prices (30%)
• Production disruption impact linked to gluten ramp-up
• Adjusted EBITDA margin excluding trading for Tereos
would be 13.8%
12
Net Revenues (R$ MM)
+40.4%
Revenue Breakdown by Product
Key Figures
In R$ Million
Q2
2012/13
Q2
2011/12
Change
Revenues 329 234 +40%
Gross Profit 45 70 -36%
Gross Margin 13.7% 30.1%
EBITDA 33 37 -11%
EBITDA Margin 10.0% 15.8%
Adjusted EBITDA 33 37 -10%
Adjusted EBITDA Margin 10.0% 15.7%
234
329
+24
+37
+41
(7)
Q2
2011/12
Currency Volume Price &
Mix
Others Q2
2012/13
Ethanol
own sales
62%
Ethanol
traded
27%
Co-products
and other
11%
13. 13
Q2 Cash Flow Reconciliation
Substantial CAPEX effort and Seasonal Working Capital Increase
(1) Net debt as of September 30th 2012 restated to include capital increase of R$212 million from PBio into Guarani
Cash Flow
In R$ Million
Proforma
Q2 2012/13(1)
Adjusted EBITDA 313
Working capital variance (408)
Other operating (including income tax paid) (52)
Operating Cash Flow (146)
Financial interests (33)
Dividends paid and received (3)
Capex (229)
Increase in capital 212
Others -
Free Cash Flow (199)
Forex impact (37)
Acquisition & Perimeter impact -
Net debt variation (236)
CAPEX
Brazil: R$98 million
Mainly allocated for renewal planting program and cogen
equipment purchases
Indian Ocean: R$26 million
Mainly allocated for maintenance and new waste water
treatment at Reunion Island
Cereals: R$131 million
Mainly allocated for (i) starch project in Brazil, (ii) capacity
expansion in Europe and (iii) BENP Lillebonne gluten and
glucose project
Working capital
Seasonal cash requirements mostly related to the crop’s
peak for the Brazilian sugarcane segment in Q2 (increasing
stocks)
14. Debt
Increase Mostly Due to Currency Effect, Seasonal Working Capital and Substantial Capex Effort
Net Debt / Adjusted EBITDA: 3.8x vs 3.2x in March, 2012
14
Debt
In R$ Million
Pro Forma
Sept. 30, 20121
March 31, 2012 Change
Current 1,992 1,291 701
Non-current 2,394 2,384 10
Amortized cost (22) (25) 3
Total Gross Debt 4,364 3,650 714
In € 1,677 1,402 275
In USD 1,856 1,652 204
In R$ 785 557 228
Other currencies 68 64 4
Cash and Cash Equivalent (817) (624) (193)
Total Net Debt 3,547 3,026 521
Related Parties Net Debt 23 17 6
Total Net Debt + Related Parties 3,570 3,043 527
(1) Net debt as of September 30th 2012 restated to include capital increase of R$212 million from PBio into Guarani.
15. Sugarcane
Brazil: catch-up in crushing and increasing cogeneration
• Crushing this crop to be between 18.2 - 18.4 million tonnes (12% up)
• Current investments at Mandu/São José plants to further increase
cogeneration next crop
• Anhydrous blending expected to be back to 25% next year
Indian Ocean: sugar prices remain supportive
• Mozambique: steadily increasing production
• Reunion Island: commercial conditions to remain favorable
Cereals
Europe: diversification to cope with higher cereal prices
• Gluten production and glucose project in BENP Lillebonne
• Next renegotiation round in December to pass-through cereal prices increase
Emerging Markets: greenfields projects underway
• Brazil: Syral-Halotek corn plant production to start at the end of Q1 2013/14
• China: site for the Dongguan plant selected, land work started
15
Outlook
