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
Revenues: R$1.6 billion
• Year-over-Year: + 47.4% at constant currency
Adjusted EBITDA*: R$206 MM
• 2x Year-over-Year
Net profit: R$63 MM
• + R$ 122 MM Year-over-Year
Record first quarter net profit due to strong increase in the operating income
(+ R$93 MM)
Q1 performance driven by strong pricing environment for sugar and ethanol,
as well as the positive contribution from recent acquisitions (Vertente,
Mandu and GQF)
Q1 2011/12 - Financial Highlights
Record first quarter net profit: strong increase in operating results
4
5. Q1 2011/12 - Market Fundamentals
Sugar: sharp rise in world prices driven by concerns about a shortfall in Brazil
UNICA recent estimate for 2011/12 down 10.2% to 510 MM tons for CS
Raw sugar prices: + 42.9% from early May to late June
Starch: cereal prices down in Europe
After the announcements in May about the end of export restrictions in Russia and
Ukraine, MATIF wheat prices fell €50/ton to less than €200/ton (c20%)
Ethanol: supply lags demand growth and high price environment
Brazil: prices still high due to limited supply
US Senate vote: first steps towards the drop in ethanol imports tariff and
subsidies?
5
6. 1st June: announcement of a R$ 49 million investment in Halotek-Fadel to enter
into the starch market in Brazil
21st June: completion of the São José distillery and start of ethanol production
(45,000 m³ for this first crop)
Weather pushing sugar prices up. Guarani is revising its original forecast for a
18.5 MM tons production to 17.1 MM, a 7.6% reduction and below UNICA’s
recently revised forecast
30th June: payment of R$ 44.6 MM in annual dividend to shareholders
• R$ 0.066 per share, a dividend yield of 2% at date of payment
3rd August, BM&FBOVESPA granted a 1-year extension to achieve 25% minimum
free float (through 1st August, 2012)
Q1 2011/12 Highlights
6
8. Q1 2011/12 - Revenues
Revenue increase driven by high sugar & ethanol prices, fueled by organic and acquisition
growth
1,604
+ 48%
1,081
1,604
1,081
In R$ MM
+ 7
+ 266 - 17
+ 267
Sugarcane
• Revenues: R$ 648 mm
+ 89% vs. Q1 2010/11 at constant currency
• Brazil: + 74% as reported
47% organic and 27% due to Mandu acquisition
• Indian Ocean: + 169% at constant currency Driven by GQF acquisition
Cereal
• Revenues: R$ 956 mm
+ 29% vs. Q1 2010/11 at constant currency
• Starch Europe: + 32% at constant currency Mainly driven by 26% increase in selling8
9. In R$ MM
Adjusted EBITDA EBITDA
114
216
Q1 2011/12 - Adjusted EBITDA and EBITDA
Increase led by sugarcane and European ethanol operations
+ 88%
9
100
206
+ 107%
Sugarcane
• Brazil: 12x higher as reported
Higher prices and Mandu acquisition. Q1 10/11 impacted by non
recurring itens
• Indian Ocean: 2x higher as reported Positive contribution of GQF acquisition
Cereal
• Starch: - 35% at constant currency + R$29
million from energy and logistic increases, more than
offsetting high selling prices
• Ethanol: 4x higher at constant currency Confirming improvement recorded in Q4
10/11 (+2%)
In R$ MM
10. 10
Q1 2011/12 - From Adjusted EBITDA to Net Income
Record first quarter net income: strong operating income
Fair value of biological assets: - R$1 MM
Fair value of financial instruments: + R$11 MM
In R$ MM
206
+ 10 216
- 133
82
66
- 16 - 3
63
- 12
51
11. Cash Flow reflecting the rise in Working Capital
Cash Flow
In R$ Million
Q1 2011/12
Adjusted EBITDA 206
Working capital variance (232)
Other operating (including income tax paid) (9)
Operating Cash Flow (35)
Financial interests (24)
Dividends paid and received (50)
Capex (239)
Cash Flow before acquisition and capital increase (348)
Acquisition & Perimeter impact (6)
Capital increase 0
Free Cash Flow (354)
Forex impact 6
Total net debt (349)
Total net debt increase (including related
parties):
• R$349 million vs. March 31, 2011
Capex & Acquisitions:
• Brazil: R$139 million
• Cereals: R$74 million
• Indian Ocean: R$32 million
11
12. Debt
Total Net Debt: R$349 million increase vs March 31, 2011
Net Debt: R$ 2,498 + 16.2% vs March 31, 2011
Net Debt / Adjusted EBITDA: 2.6x vs. 2.5x at March 31, 2011
Gross Debt
Breakdown by currency
Debt
In R$ Million
June 30, 2011 March 31, 2011 Change
Current 1,231 1,684 -26.9%
Non-current 1,660 1,134 46.4%
Amortized cost (26) (15) 73.3%
Total Gross Debt 2,865 2,803 2.2%
In € 1,484 1,364 8.8%
In USD 1,033 763 35.4%
In R$ 316 637 -50.1%
Other currencies 32 54 -40.7%
Cash and cash Equivalent (310) (633) -51.0%
Total Net Debt 2,555 2,170 17.7%
Related Parties Net Debt (57) (21) 185.0%
Total Net Debt + Related Parties 2,498 2,149 16.2%
12
Euro
52%
US Dollar
36%
Real
11%
Others
1%
Working capital requirements for both sugarcane and cereal divisions
Advancing to suppliers related to crushing expansion and cogeneration activity
15. Sugarcane - Production and Sales
Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)
15
213
488
424
233
305Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
99
179
164 165
140
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
42
113
81
51
84
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
Sugarcane crushing: 5.8 million tons - 2% vs. Q1 2010/11
Beginning of crushing period later than last crop:
End of April 2011 while in the last crop it started on March 2010
Sugar production: 417,000 tons - 7% vs. Q1 2010/11
• Mix: 61% sugar and 39% ethanol
Ethanol production: 164,000 m³ - 8% vs. Q1 2010/11
• Anhydrous: 39% of total ethanol vs. 28% in Q1 2010/11
Influenced by the dry weather the sugar content in the raw material (TRS) decrease:
123 kg/ton of sugarcane during Q1 2011/12 vs.130 kg/ton of sugarcane during Q1 2010/11
Cogeneration: 84,000 MWh + 101% vs. Q1 2010/11
5,9
8,8
4,0
5,8
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
16. Sugar
Ethanol
502
288
Sugarcane Brazil - Q1 Financials
Sharp improvement in revenues and Adjusted EBITDA
* includes Cogeneration, Agricultural Products and Hedging
Key Figures
In R$ Million
Q1
2011/12
Q1
2010/11
Change
Reported
Revenues 502 288 +74.1%
Gross Profit 89 8 +11x
Gross Margin 17.8% 2.8%
EBITDA 136 24 +6x
EBITDA Margin 27.0% 8.3%
Adjusted EBITDA 112 9 +12x
Adjusted EBITDA Margin 22.3% 3.3%
EBIT 48 (59) +107
EBIT Margin 9.6% (20.6)%
Adjusted EBIT 24 (74) +98
Adjusted EBIT Margin 4.8% (25.6)%
Capex 139 75 +84.8%
Gross Profit: R$89 million
• Impact of fair value of biological assets:
- R$2.2 million vs. + R$20.8 million in Q1 2010/11
Adjusted EBITDA: R$112 million
• Fair value of financial instruments:
+ R$25.8 million vs. - R$6.3 million in Q1 2010/11
Adjusted EBITDA Margin1 including tilling
depreciation would be 27.3%
Sugar: 52% of total revenue
• Sales volume: + 43% vs. Q1 2010/11
Mainly to export market: + 123% vs. Q1 2010/11
• Price (R$/ton): + 14% vs. Q1 2010/11 (before hedging effect)
Ethanol: 39% of total revenue
• Sales volume: + 42% vs. Q1 2010/11
Higher volume in domestic market
• Price (R$/m³): + 80% vs. Q1 2010/11
Capex: R$139 million
• Plantation: R$43 million
• Expansion and cogeneration: R$60 million
In R$ MM
Revenues
16
+ 25
+ 87
+ 61
+ 58
- 17
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment,
Adjusted EBITDA would have reached R$137 million.
17. Mozambique
Anticipated crop with sugarcane crushed in Q1
• 2011/12 crushing season began this year on May 10th
• Quarter agricultural yields reached 99 ton/ha vs 75
ton/ha as a result of irrigation and planting program
Revenues: R$4 million
• Stable vs. Q1 2010/11
Adjusted EBITDA: - R$11.9 million
• Up R$3.1 million in Q1 2010/11 in a seasonally low
quarter
Capex: R$5.1 million
La Réunion
No sugarcane crushed in Q1
• Crushing period runs from July to end-December
Revenues: R$142 million
• + R$92 million vs. Q1 2010/11
• GQF acquisition impact
Adjusted EBITDA: R$18.8 million
• vs. R$8.0 million in Q1 2010/11
Capex: R$27.3 million
• + R$21 million vs. Q1 2010/11
Sugarcane Indian Ocean - Production - Q1 Financials
Increase in prices and perimeter effect
Key Figures
In R$ Million
Q1
2011/12
Q1
2010/11
Revenues 146 54
Gross Profit 20 (1)
Gross Margin 14.0% (2.1)%
EBITDA 8 1
EBITDA Margin 5.4% 2.5%
Adjusted EBITDA 7 (7)
Adjusted EBITDA Margin 4.7% (13.0)%
Capex 32 13
La Réunion
Sugarcane Crushing (’000 t)
Mozambique
Sugarcane Crushing (‘000 t)
17
1.003
874
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
230
289
17 65
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
19. Starch Europe - Production and Sales
Higher wheat grinding mainly impacting co-products volumes
Co-products Sales (‘000 t)Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) Ethanol & Alcohol Sales (‘000 m3)
Cereal grinding: 739,000 tons + 7% vs. Q1 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: + 0.7% vs. Q1 2010/11
• Alcohol & Ethanol: - 5% vs. Q1 2010/11
• Co-products: + 10% vs. Q1 2010/11
19
693 702 696 696
739
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
437
424
398 409
440
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
45 46
42
44 43
Q1
10/11
Q2
10/11
Q3
10/11
Q4
10/11
Q1
11/12
20. Starch Europe - Q1 Financials
Higher COGS due to energy, raw material and logistics expenses
Revenues
In R$ MM
Q1 2010/11 Currency Volume Price & Mix Q1 2011/12
739
577
Starch and
Sweeteners
62.8%
Alcohol and
Ethanol
9.4%
Co-
products
26.4%
Others
1.4%
Key Figures
In R$ Million
Q1
2011/12
Q1
2010/11
Change
Reported
Change
Constant
Currency
Revenues* 739 577 +28.1% +27.0%
Gross Profit* 161 172 -6.4% -7.5%
Gross Margin* 21.8% 29.8%
EBITDA 49 89 -45.1% -45.6%
EBITDA Margin 6.4% 15.5%
Adjusted EBITDA 64 98 -34.6% -35.1%
Adjusted EBITDA Margin 8.4% 17.0%
EBIT 20 60 -67.0% -67.2%
EBIT Margin 2.6% 10.5%
Adjusted EBIT 35 69 -49.2% -49.6%
Adjusted EBIT Margin 4.6% 12.0%
Capex 40 22 +82.8%
Revenues: + 27.0% at constant currency
• + 21.5% in prices and mix. Cereal prices increases
mostly passed through to customers
• + 5.5% in volumes
Gross Profit: - R$11 million
• Increasing energy costs of R$20 million
Adjusted EBITDA: R$64 million, down R$34 million
• Increasing logistic expenses of R$9 million
+ 5 + 32
+ 125
* Excludes the R$ 30.5 million financial impact of the sales of co-
products produced by Tereos BENP and sold by Tereos Syral20
21. Ethanol Europe - Q1 Financials
Second consecutive quarter of solid performance after technical improvements
Key Figures
In R$ Million
Q1
2011/12
Q1
2010/11
Change
Reported
Change
Constant
Currency
Revenues* 218 162 +34.4% +33.0%
Gross Profit* 33 12 +181.4% +176.7%
Gross Margin* 15.3% 7.3%
EBITDA 27 7 +4x +4x
EBITDA Margin 14.3% 4.1%
Adjusted EBITDA 27 7 +4x +4x
Adjusted EBITDA Margin 14.3% 4.1%
Capex 34 7 +5x
Ethanol sales*: 129,000 m³
• Slightly lower than Q1 2010/11. Increase in production
practically offsetting a decrease in trading activities
Revenues: + 34%
• FX impact: + 1%
• Volumes slight increase : + 2%
• Prices increase: +31%
EBITDA and Gross Profit for the quarter stable if
compared to Q4 2010/11
Solid operating performance after an atypical year,
with record production volumes posted for the
second consecutive quarter
Capex: R$34 million
• Gluten project to start up in Q1 in 2012/13
* Includes sales of ethanol produced by Tereos
Revenues
In R$ MM
Q1 2010/11 Currency Volume Price & Mix Q1 2011/12
218
162
21
+ 2 + 3
+ 51
* Includes the R$ 30.5 million financial impact of the sales of co-
products produced by Tereos BENP and sold by Tereos Syral
23. Tereos Internacional - Conclusion
Investing in future growth through:
• Increasing our sugarcane capacity: brownfield investments (+ 3.5 million tons)
in our existing mills and through cogeneration operations (4 times growth)
• Entering the Brazilian starch market to benefit from greater margin potential
Positive market outlook:
• Sugar: lower crop estimates for Brazil expected to sustain high world sugar
price levels
• Ethanol: tight supply combined with increasing flex-fuel fleet in Brazil expected
to maintain ethanol prices at current level
• Starch: isoglucose prices shall be supported by higher sugar prices
23
