4Q 13/14 Earnings

Tereos Internacional2013/14 Year End Results

São Paulo – June 11th, 2014

Key initiatives and major developments in FY 2013/14

Progress in Operational performance

� Brazil: Already reaping the benefits of the multi-year investment and efficiency program (Guarani2016):

� Agriculture: +8% in volumes at 19.7 million tonnes (full consolidation) driven by strong yields (92 t/ha or+10% above the average in the Center South region)

� Co-generation: +38% in energy sales to 711 GWh, due to the ramp up of cogeneration, particularly atSão Jose and Mandu mills

� Cereals Europe: ”Performance 2015 “ cost & efficiency program progressing

Major headways in International development and product portfolio diversification

� Cereals Europe: Lillebonne at normalized utilization rates with more diversified mix of products(protein/sweeteners)

2

� Cereals Brazil: Sweeteners sales ramping up at Palmital corn-based starch facility and client portfoliodeveloping

� Cereals Asia: Dongguan construction and Tieling improvement and diversification plan in China advancing.Establishing presence in Indonesia with closing of 50% acquisition of Redwood on May 28th, 2014

Strengthening of financial situation

� Capital injection from PBio at Guarani in October 2013: R$225 million (TI at 60.4% stake)

� Refinancing:

� Guarani: improvement in debt maturity profile with close to USD 300 million of refinancing in the last 12months, including USD190 million of export notes in October 2013 (duration of 5 years at lower rates)

� Deleverage process under way as multi-year investment program is largely completed: netdebt/EBITDA ratio down to 3.7x in March 2014 vs. 4.2x in March 2013

Sugar:� Since January’s low, raw sugar prices have increased 21% to 17.8

USD cents/lb in March 31st, mainly on the back of the severedrought that affected sugarcane fields in Center-South of Brazil.Since then prices hovering around 18.0-18.5 USD cents/lb

� BRL/USD devaluation during the quarter (-5%) improved Brazilianproducers’ remuneration

Starch:� Tensions in Ukraine pushed Matif cereal prices up in Feb/Mar

Q4 2013/14 Market Highlights

14

15

16

17

18

19

20

21

380

410

440

470

500

530

560

590

Apr-13 Jul-13 Oct-13 Jan-14

LIFFE#5 NY#11

US$/MT USD Cts/lb

230

250

270 €/MT

� Market demand for both starch and liquid sweeteners slightly betterlast quarter but competition in Europe remains fierce

� High volatility of cereal prices maintained margins under pressureduring the period

Ethanol:� In Brazil, anhydrous and hydrous ethanol prices increased 10%

and 8% in the quarter on tighter stock as the Center-South regionentered into the intercrop period. Concerns over the 2014/15crop also contributed to sustain prices

� In Europe, FOB Rotterdam prices rebounded 9% during Marchfrom EUR460/m3 to EUR502/m3, on increasing US ethanolprices, higher feedstock costs and stronger demand

3Source: Bloomberg

150

170

190

210

230


Corn MATIF Wheat MATIF

400

450

500

550

600

650

700

700

900

1100

1300

1500

1700

1900


Brazil ESALQ Europe Rotterdam

R$/m³ €/m³

941

1.063

1.957

2.115

2.008

2.217

7,402

Net Revenues Evolution

5,688

5,011

6,876

R$ MM

+10%

+13%

Y-o-Y growth8,339

752 678 779 1.056 848

2.7012.511

3.1563.396

4.211

239 540

826

941

1.3191.957

2009/10 2010/11 2011/12 2012/13(1) 2013/14(1)

Alcohol & Ethanol Europe Starch & Sweeteners Africa/Indian Ocean Brazil

Note: (1) Figures are in accordance with IFRS 11 (JV contribution) and Group's new segmentation4

+24%

-20%

281 428

424

373

518

959

850786

Adjusted EBITDA Evolution

771

R$ MM

+39%

Y-o-Y growth962

81 51 9428

75

395

292302

205193

13

93

158

190184

373

-14 -19 -9 -9

2009/10 2010/11 2011/12 2012/13(1) 2013/14(1)

Alcohol & Ethanol Europe Starch & Sweeteners Africa/Indian Ocean Brazil Other

5

-3%

-6%

+173%

Note: (1) Figures are in accordance with IFRS 11 (JV contribution) and Group's new segmentation

0 01.056

3.396 4.211

9411.063

2.008

2.217 Brazil

Africa/Indian Ocean

Starch & Sweeteners

Alcohol & Ethanol Europe

Holding

RevenuesBetter volumes and positive FX effect supporting revenues growth

Net Revenues (R$ MM)

7,402

8,339

74028339

+874 +227

(131) (32)

0 01.056 848

2012/13 2013/14

Holding

6

� Revenue growth supported by:

� Higher sales volumes for all segments, except for A&E Europe, with particularly strong growth in the year in Brazil ethanol volumes (+18%). Ethanol trading sales for Tereos Group are no longer consolidated in this segment since October 2013

� Better ethanol prices in Brazil and positive mix effect with increased volumes of protein in S&S

� Positive currency translation effect due to Real depreciation vs. Euro

� But partially offset by:

� Negative year-on-year price evolution in sugar, as well as in S&S and ethanol in Europe (following declining cereal prices and weak demand in EU)

2012/13 Currency Volume Price & Mix Others 2013/14

Net Revenues Evolution by Product

March 2013 – 12 Months March 2014 – 12 Months

Sugar24%

Starch & Co-products

Alcohol & Ethanol

20%

Energy2%

Others11%

Sugar22%

Starch & SweetenersCo-products

Alcohol & Ethanol

18%

Energy2%

Others10%

7

� Well-diversified portfolio with relatively stable breakdown

� Sugar and Sweeteners remain the major source of revenues for Tereos Internacional

� Alcohol & Ethanol remains as the second major activity backed by increased volumes & prices in Brazil

� Co-products revenues had a higher contribution in 2013/14 mainly on the back of positive mix effect with the diversification of production at Lillebonne and the development of protein sales

� Energy sales increasing due to the higher co-generation in Brazil

Starch & Sweeteners

31%

Co-products12%

Sweeteners32%

Co-products16%

786962

+146

(5) (12)

+48

(0)

28 75

205193

190 184

373

518

Brazil

Africa/Indian Ocean

Starch & Sweeteners


Holding

Adjusted EBITDASugarcane Brazil and improvement in A&E Europe setting the tone for higher profitability

Adjusted EBITDA (R$ MM)

786

962

2012/13 Brazil Africa/IO S&S A&E Europe

Holding 2013/14-9 -928 75

2012/13 2013/14

8

� Adjusted EBITDA up year-on-year as a consequence of:

� Cost dilution in Sugarcane Brazil on higher volumes crushed and benefits from the efficiency plan

� Positive contribution of A&E Europe on normalization of production and lower input costs, duenotably to ramp up of protein volumes and improved operational performance, compensating forthe drop in ethanol prices

� Positive Forex impact on steady Indian Ocean performance

� But partially offset by:

� Tough market conditions in Europe allowing only for a partial pass-through of costs to clients

� Lower production in Mozambique

Margin 11.5%Margin 10.6%

43

514

16

711

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

143

477

208

563

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

363

1.357

374

1.482

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

4,9

16.5

0

18.3

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

Ethanol Sales (‘000 m³)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)

+9.2% YoY +18.1% YoY

Sugarcane Brazil – Production & SalesRecord Sugarcane Crushing at 19.7 million tonnes

Energy Sales (‘000 MWh)

+38.3% YoY

� Crushing

+10.6% YoY

9

� Crushing

� Higher crushing in 2013/14: 19.7 million tonnes or +8% y-o-y (full consolidation) and 18.3 million tonnes or +11% y-o-y (without Vertente, on equity consolidation)

� Better-than-expected agricultural yields at 92 t/ha vs. 84 t/ha in 2012/13

� Improvement in production

� Overall production up 10% to 2.5 Mt (expressed in TRS)

� Mix: 63% sugar, 37% ethanol vs. 64% / 36% last year

� Sugar: 1.5 Mt +9% YoY

� Ethanol: 535 k m³ +13% YoY

� Progress on cogeneration

� Energy sales (including trading) up 38% to 711 GWh, due to the ramp up of cogeneration, particularly at São Jose and Mandu mills

2008 2217

(59)

+121 +73 +97(23)

2012/13 Price & Volume Price & Volume Others 2013/14

Sugarcane Brazil – FinancialsPositive volume impact and ethanol price effect together with higher cogeneration revenues


Sugar Ethanol

Key Figures

In R$ Million2013/14 2012/13 Change

Revenues 2,217 2,008 +10%

Gross Profit 429 304 +41%

Margin 19.4% 15.1%

EBIT 132 35 +275%

Margin 5.9% 1.7%

Adjusted EBITDA 518 373 +39%

2012/13 Price & Mix

Volume Price & Mix

Volume Others 2013/14

* includes Cogeneration, Agricultural Products, Hedging and Ethanol Resale

10

(1) Tereos Internacional allocates tilling expenses as cost.If tilling expenses were allocated as investment, AdjustedEBITDA for fiscal year 2013/14 would have reachedR$623 million.

� Sugar: 58% of total net revenues

� Volumes increased 9% to 1.482 million tonnes

� Prices down 5% Y-o-Y at 873 R$/tonne

� Ethanol: 32% of total net revenues

� Volume sold up 18% to 563,000 m3

� Prices up 12% Y-o-Y at 1,251 R$/m3

� Cogeneration: R$101 million vs. R$80 million

� Adjusted EBITDA: R$518 million, +39%

• Lower unitary costs coupled with betterethanol prices and first benefits of Guarani2016 program

• Adjusted EBITDA margin up nearly 5ppts

• Adjusted EBITDA Margin1 for fiscal year2013/14 including tilling as depreciation:28.1%

Margin 23.4% 18.5%

63

290

68

286

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

6

2.566

0

2.188

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

-14.7% YoY

Sugarcane Indian Ocean/Africa – Production and Financials Indian Ocean operations continue to deliver steady performance

Sugarcane Crushing (’000 t) Sugar sales (‘000 t)

-1.4% YoY

Key Figures


Revenues 1,063 941 +13%

Gross Profit 197 222 -11%

Margin 18.5% 23.6%

EBIT 66 84 -22%

Margin 6.2% 8.9%

Adjusted EBITDA 184 190 -3%

Margin 17.3% 20.1%

11

2013/14 Revenue Breakdown by Product � Sugarcane crushing

� Indian Ocean: slight reduction (-7% in sugarcane crushing to 1.72 million tonnes)

� Africa: unfavorable weather conditions and technical issues with irrigation resulted in a 36% reduction in sugarcane crushing to 470,000 tonnes

� Revenues: +13% Y-o-Y

� Positive volume and FX impact in Indian Ocean more than offset the negative price effect for the segment and volume drop in Mozambique

� Adjusted EBITDA: -3% Y-o-Y

� Positive Forex impact on steady Indian Ocean performance did not fully compensate the drop in results for Mozambique

Sugar Indian Ocean 44%

Sugar Africa 8%

Trading and others 48%

129

535

79

423

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

432

1.738

451

1.772

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

764

3.151

839

3.298

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

Cereal Segment - Production and SalesHigher Grinding on Recovery of Lillebonne Production and Palmital Ramp-up

Cereal Grinding (‘000 t)

Starch & Sweeteners Sales (‘000 t)

+4.7% YoY +2.0% YoY

Alcohol & Ethanol Sales (‘000 m3)

-20.9% YoY

289

1.166

282

1.162

4T

12/1

3

12M

12/1

3

4T

13/1

4

12M

13/1

4

Co-products Sales (‘000 t)

-0.3% YoY

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

Q4

12/1

3

FY

12/1

3

Q4

13/1

4

FY

13/1

4

12

� Grinding in 2013/14: +5% to 3.3 million tonnes, mostly driven by better capacity utilization at Lillebonne, investments in Marckolsheim and ramp-up of Palmital corn factory in Brazil

� Starch & Sweeteners sales: +2% Slight increase in the volume of starch products sold in a sluggish EU market with strong pressure on prices forsome segments

� Alcohol & Ethanol sales: -21% Mostly end of ethanol trading sales for Tereos Group in the 2nd half

4T

12/1

3

12M

12/1

3

4T

13/1

4

12M

13/1

4

33964211

+567+282

(70)

+36

Starch & Sweeteners – FinancialsRevenue increase, although profitability remains pressured by cost pass-through


Key Figures


Revenues 4,211 3,396 +24%


Margin 15.8% 18.0%

EBIT 14 75 -81%

Margin 0.3% 2.2%



13

� Revenues: R$4,211 million, up 24%

� Positive volume impact mainly on the back of higher protein sales

� Better prices for co-products (mix effect of protein) were offset by lower prices forstarches and sweeteners

� Adjusted EBITDA: R$193 million, down 6%

� Tough market conditions in Europe maintained pressure on margins year-on-year

� Benefit of recent investments expanding product portfolio not yet fully obtained


Margin 4.6% 6.0%

Alcohol & Ethanol Europe – FinancialsPositive performance in the 2nd half led to better results y-o-y. End of trading activity

Net Revenues (R$ MM)Key Figures


Revenues 848 1,056 -20%


Margin 8.1% 4.8%

EBIT 31 (17) -282%

Margin 3.7% (1.6%)

Adjusted EBITDA 75 28 +173%

1056848

+161

(311) (38) (20)

� Revenues: R$848 million, down 20%

� Prices: -3.6% for the segment

� Lower ethanol trading sales y-o-y

� Adjusted EBITDA: R$75 million, up 173%

� Lower input prices, due notably to ramp up of gluten volumes and improved operational performance, more than offsetting the lower Rotterdam prices

14

2013/14 Revenue Breakdown by Product

Margin 8.9% 2.6%

Alcohol & ethanol own sales 66%

Trading of ethanol 29%

Others 5%


Capital ExpendituresSignificant CAPEX reduction with the finalization of several investment programs

CAPEX (R$ MM)2013/14 CAPEX Breakdown

Starch & Sweeteners

21%


4%

Africa/Indian

Brazil63%

1111885

+24 +8

(149)(109)

15

� Brazil: R$561 million

• Combination of plantation, intercrop costs, and multi-year investment plan in capacity and cogeneration (Tanabi)

• 86% of the expansion program completed

� Africa/Indian Ocean: R$110 million

• Primarily maintenance for the segment and plantation in Mozambique

� Starch & Sweeteners: R$182 million

• Focused on maintenance of European facilities and finalization of 1st phase of investments of Palmital starch facility

� Alcohol & Ethanol Europe: R$31 million

• Maintenance of current operations

Africa/Indian Ocean12% 2012/13 Brazil Africa/IO S&S A&E

Europe2013/14

Cash Flow Reconciliation & Debt Composition Strong deleverage: 3.7x in March 2014 vs. 4.9x in December 2013

Cash Flow

In R$ Million2013/14

Adjusted EBITDA 962

Working capital variance 288

Financial interests (197)

Others (119)

Operating Cash Flow 934

Recurring Capex (530)

Recurring Cash Flow 404

Debt

In R$ Million

March 31st,

2014

March 31st,

2013∆

Current 1,522 1,829 -16.8%

Non-current 2,734 2,399 +14.0%

Amortized cost (23) (26)

Total Gross Debt 4,233 4,202 +0.7%

In € 1,413 1,596 -11.5%

In USD 1,890 1,688 +12.0%

In R$ 935 882 +6.0%

16

� Net Debt/Adjusted EBITDA: 3.7x vs. 4.2x on March 31st, 2013 and 4.9x sequentially

� Refinancing of USD190 million notes at Guarani

� Working capital efforts

� Currency Effect on Debt: Devaluation of the Real against Euro and USD

Growth Capex (360)

Dividends paid and received

9

Capital increase 225

Others (78)

Free Cash Flow 200

Others (inc. Forex impact) (444)

Net Debt Variation (244)

In R$ 935 882 +6.0%

Other currencies 19 62 -69.3%

Cash and Cash Equivalent (682) (892) -23.5%

Total Net Debt 3,551 3,310 +7.3%

Related Parties Net Debt 15 13 -

Total Net Debt + Related Parties

3,566 3,322 +7.3%

� Sugarcane Brazil:

� Crushing volumes in the next crop expected to be up again, by some 4%, to c. 20.5 million tonnes (fullconsolidation basis) to further increase industrial utilization rates, in contrast to Center-South region which isexpected to crush less than last year (current estimates hovering around a 5-10% drop)

� Electricity volume to further grow next year, with Tanabi coming on stream

� Further unitary cost reduction expected due to the “Guarani 2016” efficiency program and higher crushing

� Multi-year investment program in Brazil nearing completion to further reduce Capex level next year

� Sugarcane Africa/Indian Ocean:

� Sugarcane crushing in Mozambique to recover on the back of higher replanted area in irrigated fields

� Cereals:

Outlook

� Cereals:

� Europe:

� “Performance 2015”: progress to continue on the multi-year performance improvement program; economicconditions expected to remain challenging in the EU and cereal prices to remain volatile

� Major development projects completed in Europe, Capex reduced and oriented to energy saving programs/sustaining activity

� Alcohol & Ethanol segment operational performance stabilized at Lillebonne. Normalization of margins with theend of trading sales activity for Tereos Group. Negative impact of lower ethanol price to remain

� International:

� Brazil: full year-consolidation of Palmital as sweeteners sales ramp up to improve the product mix, helping aswell to dilute fixed costs

� China: Dongguan facility to start ramping up in the second semester

� Indonesia: Operational performance improvement and product diversification plan at Redwood to be finalized,and implementation to begin in the year

17

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4Q 13/14 Earnings

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