Tereos Internacional Second Quarter 2012/13 Results

São Paulo – November 12th, 2012

Quarter Highlights

Q2 2012/13 Financial Results

Operating Segment Review

Cash Flow and Debt Position

Outlook

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

+40 +18 +132

+95

Q22011/12

Brazil IndianOcean

StarchEurope

EthanolEurope

Q22012/13

+120 +120 +36 +9

Q22011/12

Currency Volume Price & Mix Others Q22012/13

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

+46 +11

(3) (4) (1)

Q22011/12

Brazil IndianOcean

StarchEurope

EthanolEurope

Holding Q22012/13

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

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

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 Q

211

/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

Q2

11/1

2

Q3

11/1

2

Q4

11/1

2

Q1

12/1

3

Q2

12/1

3

Energy Sales (‘000 MWh)

+75.0% YoY

Own Sales Trading

502 542

(20)

+28

(9) 0

+40

Q22011/12

Price &Mix

Volume Price &Mix

Volume Others * Q22012/13

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

-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

Q2

11

/12

Q3

11

/12

Q4

11

/12

Q1

12

/13

Q2

12

/13

+2.7% YoY

74 89 77 67 76

Q2

11

/12

Q3

11

/12

Q4

11

/12

Q1

12

/13

Q2

12

/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%

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

433 450 444

Q2

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

11/1

2

Q3

11/1

2

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

12/1

3

Q2

12/1

3938 898 924 932 968

221 204 210 217 237

59 66 62 60 66

Q2

11

/12

Q3

11

/12

Q4

11

/12

Q1

12/1

3

Q2

12/1

3

281 270 272 277 303

Starch & Sweeteners Ethanol & Alcohol Own Sales Trading Starch & Sweeteners Ethanol & Alcohol

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

Q22011/12

Currency Volume Price & Mix Others Q22012/13

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)

Q22011/12

Currency Volume Price &Mix

Others Q22012/13

Ethanol own sales

62%

Ethanol traded 27%

Co-products and other

11%

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)

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.

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

16

Investor Relations

Phone: +55 (11) 3544-4900

ir@tereosinternacional.com