2. 1. Financial Highlights
2. Major Developments
3. Market and Financial Update
4. Operating Segment Review
4. Cash Flow and Debt Position
5. Outlook
2
3
4
5
6
1
3. 2012/13 Financial Highlights
3
Revenues : R$7.6 billion + 11.1%, as reported
4-year CAGR of 15.1%
Adjusted EBITDA*: R$869 million - 9.4%, as reported
4-year CAGR of 4.2%
Net Profit (group interest): - R$0.2 million
Dividends: R$0.046 per share
1
* Adjusted EBITDA: EBITDA excluding items from discontinued operations, accounting effect of adjustments in the fair value of the financial instruments
(including one-off accounting results for the trading derivatives booked in other operating item) and of the biological assets
4. 2012/13 Key Initiatives and Major Developments
4
Agricultural & industrial competitiveness
Guarani 2015/16: efficiency/investment program in place
Agriculture: replanting program and mechanization
Cogeneration in Guarani: investments continued at Mandu and São José industrial plants
International development and product portfolio diversification
Syral Europe: start of dextrose production at Saragossa (Jan, 2013) and Lillebonne (Mar, 2013)
Syral Brazil: start of production trials at Palmital corn-based starch facility (May, 2013)
Syral China: start of construction of Dongguan wheat-based starch facility (Nov, 2012)
Growth
Sugarcane planting in Brazil: further expansion of surfaces
Starch production in China: extension of the partnership with the Wilmar Group to a broader portfolio of
raw materials, now including corn and potatoes, together with the acquisition of a 49% stake in Tieling corn
starch facility (closing expected to H2 13/14, pending regulatory approvals)
Finance
Shareholder reorganization & capital increase: corporate structure simplified (free float increase from
10.7% to 29.3%), together with a share capital increase of R$370 million, 100% subscribed
Capital injection from PBio at Guarani: R$212.2 million (PBio now owns 35.8%)
Refinancing at Tereos EU: syndicated credit facility of €450 million extended by 2 years to June 2017,
simplifying the existing structure and covenant requirements
2
5. Sugar:
Recovery of Brazilian production and exports in 2012/13 which
improved 9% and 20%, respectively
Another global surplus pressuring prices: estimate of 6.1 million
tonnes surplus for 2013/14 crop (April/March basis)
Price direction moving forward to be dependent on producers’
response to lower sugar prices and ethanol production mix in Brazil
Starch:
Historical drought in the US led to a rally in corn prices in H2 2012
Brazil overtook the US as the largest corn exporter
Estimates for the new 2013/14 world crop are optimistic, pointing to a
record corn and wheat production already weighing down on prices
Ethanol:
Production and exports in Brazil increased in 2012/13; recent
government incentives should shift mix towards ethanol production
Lower US corn prices should support producers’ margins and boost
US production, which should lower imports from Brazil
T2 FOB Rotterdam prices were relatively flat as demand remained
sluggish; EU Commission ruled against US imports and to review
blending targets
5 Source: Bloomberg
Market Highlights3
300
400
500
600
700
800
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13
NY#11 LIFFE #5
US$/MT
170
190
210
230
250
270
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13
Corn Matif Wheat Matif
€/MT
400
500
600
700
800
700
1000
1300
1600
1900
Jan-12 May-12 Sep-12 Jan-13
Brazil ESALQ Europe Rotterdam
R$/m³ €/m³
6. 6,876
7,640
+517 +161 +70 +17
2011/12 Currency Volume Price & Mix Others 2012/13
0 0
1,089 1,239
2,846 3,381
826 941
2,115 2,079
2011/12 2012/13
Brazil Indian
Ocean /
Africa
Starch
Europe
Ethanol
Europe
Other
6,876 7,640
2012/13 – Revenues
Starch & Sweeteners and Sugarcane volumes supporting revenues growth
6
Net Revenues (R$ MM)
3
+11.1%
Revenue growth supported by:
Higher sales volumes in sugarcane and Starch & Sweeteners segments (including Haussimont
perimeter effect)
Higher prices for starch & sweeteners
But partially offset by:
Lower prices in the Brazilian sugar and ethanol business
Output decrease for the Alcohol & Ethanol Europe segment due to difficulties of gluten line start-up
in Lillebonne
7. -19 -9
151 71
246
223
158 190
424 393
2011/12 2012/13
Brazil Indian
Ocean /
Africa
Starch
Europe
Ethanol
Europe
Other
959 869
2012/13 - Adjusted EBITDA
Lower EBITDA mainly due to higher cereal prices and reduced ethanol volumes in Europe
7
Adjusted EBITDA down year-on-year as a consequence of:
Increase in cereal purchase prices not fully passed onto customers
Technical issues for the start-up of BENP Lillebonne gluten line lowering ethanol output
Lower prices in the Brazilian sugar & ethanol business
But partially compensated by:
Higher volumes in the sugarcane businesses (including higher energy sales in Brazil)
Positive price and mix effect in the Indian Ocean
Adjusted EBITDA (R$ MM)
3
Margin 11.4%Margin 13.9%
-9.4%
959
(31)
+32
(22)
(80)
+11
869
2011/12 Brasil Oc. Índico /
África
Amido &
Adoçantes
Álcool &
Etanol
Outros 2012/13
8. 7,640
752 678 779 865
2,701 2,511
3,156
3,754
239 540
826
941
1,319
1,957
2,115
2,079
2009/10 2010/11 2011/12 2012/13
Alcohol & Ethanol Europe Starch & Sweeteners
Indian Ocean/Africa Brazil
Net Revenues Evolution
4-Year CAGR: 15.1%
5,688
5,011
6,876
+58%
+294%
+39%
+15%
3
R$ MM
Note: based on old segmentation and as reported
8
4-year growth
9. 81 51 95 10
395
292
302
285
13
93
158
190
281 428
424
393
-14 -19 -9
2009/10 2010/11 2011/12 2012/13
Alcohol & Ethanol Europe Starch & Sweeteners
Indian Ocean / Africa Brazil
Other
959
850 869
Adjusted EBITDA Evolution
4-Year CAGR: +4.2%
771
+40%
15x
-28%
-88%
3
R$ MM
Note: based on old segmentation and as reported
9
4-year growth
10. 249 251
401 380 376
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
4.7
8.1
5.4
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
Ethanol Sales (‘000 m³)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)
10
+50.8% YoY -0.7% YoY
Sugarcane Brazil – Production & Sales
Renewal and expansion programs already contributing to higher crushing
Own Sales Trading
4
Crushing
Recovery in sugarcane volume: 18.2 million tonnes processed (95% mechanized for own sugarcane)
and expectation of c. 20 million tonnes for the next crop
Yields improving from 70 t/ha to 84 t/ha in 2012/13 but lower TRS (135 vs. 138 kg/tonne last year)
55,000 hectares planted in 2012/13
Average age of sugarcane: improving from 3.7 years in 2011/12 to 3.3 years in 2012/13
Flexibility of industrial set-up allowing focus on more profitable sugar production
Sugar: 1.5 million tonnes 64% of mix vs. 62% last year
Ethanol: 528,000 m³ 36% of mix
Progress on cogeneration
Annual volumes up 43%, with portion of volumes sold at higher spot prices
Expect to double own cogeneration sales in 2013/14 crop
151
115 99
143 150
40
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
Energy Sales (‘000 MWh)
+88.9 YoY
Own Sales Trading
18
50
182
118
34
68 43
57
30
9
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
11. 2,115 2,079
(119)
+111
(57)
+29
0
2011/12 Price &
Mix
Volume Price &
Mix
Volume Others * 2012/13
Sugarcane Brazil – Financials
Increased volume impact offset by lower sugar and ethanol prices
* includes Cogeneration, Agricultural Products, Hedging and Ethanol Resale
Key Figures
In R$ Million
2012/13 2011/12 Change
Revenues 2,079 2,115 -2%
Gross Profit 315 369 -15%
Gross Margin 15.2% 17.5%
EBITDA 437 453 -4%
EBITDA Margin 21.0% 21.4%
Adjusted EBITDA 393 424 -7%
Adjusted EBITDA Margin 18.9% 20.0%
11
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment,
Adjusted EBITDA for fiscal year 2012/13 would have
reached R$494.2 million.
Net Revenues (R$ MM)
Sugar Ethanol
4
Sugar: 62% of total net revenues
Volumes increased +8.1% to 1.407 million tonnes
Prices down -5.3% Y-o-Y at 919 R$/tonne
Ethanol: 27% of total net revenues
Volume sold (ex-trading) up +5.3% to 506,000 m3
Prices down -9.7% Y-o-Y at 1,121 R$/m3
Cogeneration: R$81.3 million vs. R$44.7 million
Adjusted EBITDA: R$393 million
• Drop driven by negative price effect and cost
inflation (mainly salaries, leasing and
logistics)
• Adjusted EBITDA Margin1 for fiscal year
2012/13 including tilling as depreciation:
23.8%
12. -86.1% YoY
Sugarcane Indian Ocean/Africa – Production and Financials
Another solid year for the Indian Ocean operations
12
Sugarcane Crushing (’000 t) Sugar sales (‘000 t)
-18.2% YoY
Key Figures
In R$ Million
2012/13 2011/12 Change
Revenues 941 826 +14%
Gross Profit 222 146 +52%
Gross Margin 23.6% 17.7%
EBITDA 180 151 +19%
EBITDA Margin 19.1% 18.3%
Adjusted EBITDA 190 158 +20%
Adjusted EBITDA Margin 20.1% 19.1%
4
2012/13 Revenue Breakdown by Product
Sugar
Indian
Ocean
40%
Sugar
Africa
13%
Trading and
others 47%
43 116
1,267
1,176
6
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
77
67
76
86
63
Q4
11/12
Q1
12/13
Q2
12/13
Q3
12/13
Q4
12/13
Sugarcane crushing
Indian Ocean: steady performance (-2.7% in sugarcane
crushing to 1.84 million tonnes)
Africa: despite unfavorable weather conditions and
technical issues negatively impacting irrigation,
sugarcane crushing increased 1.9% to 730,000 tonnes
Revenues: +14% Y-o-Y
Favorable commercial conditions in the Indian Ocean
and increase in volumes in Mozambique
Adjusted EBITDA: +20% Y-o-Y
Adjusted EBITDA expansion for both operations
14. Starch & Sweeteners – Financials
Good volumes and increased prices, but not sufficient to compensate for sharp rise in raw
material costs and volatility
Key Figures
In R$ Million
2012/13 2011/12 Change
Revenues 3,381 2,846 +19%
Gross Profit 625 502 +25%
Gross Margin 18.5% 17.6%
EBITDA 224 249 -10%
EBITDA Margin 6.6% 8.8%
Adjusted EBITDA 223 246 -9%
Adjusted EBITDA Margin 6.6% 8.6%
14
Net Revenues (R$ MM)
Revenues: R$3,381 million, up 19%
Volume increase for starch and sweeteners (+3.5%) and co-products (+2.3%)
More challenging environment for price renegotiation at year-end round
Adjusted EBITDA: R$223 million, down R$22 million
Starch & Sweeteners segment affected by higher raw material costs not fully passed
onto customers
Higher energy costs
4
2,846 3,381
+307 +95 +85 +48
2011/12 Currency Volume Price & Mix Others 2012/13
15. 1,089
1,239
+118
(65)
+111
(14)
2011/12 Currency Volume Price & Mix Others 2012/13
Alcohol & Ethanol Europe – Financials
Positive diversification impact delayed due to technical difficulties
Revenues: R$1,239 million, up 14%
Prices: 9.2% for the whole segment
Higher revenues of trading ethanol and co-
products making up for lower ethanol volumes
Adjusted EBITDA: R$71 million, down 53%
Increase in the cost of cereal and energy and
lower output due to technical difficulties at
Lillebonne
15
Net Revenues (R$ MM)
2012/13 Revenue Breakdown by Product
Key Figures
In R$ Million
2012/13 2011/12 Change
Revenues 1,239 1,089 +14%
Gross Profit 110 266 -59%
Gross Margin 8.9% 24.4%
EBITDA 71 151 -53%
EBITDA Margin 5.7% 13.9%
Adjusted EBITDA 71 151 -53%
Adjusted EBITDA Margin 5.7% 13.9%
4
Ethanol own
sales 57%Ethanol
traded 31%
Co-products
and other
12%
16. 16
2012/13 Cash Flow Reconciliation
Investments in major segments partially funded by the capital increase
Cash Flow
In R$ Million
2012/13
Adjusted EBITDA 869
Working capital variance (61)
Other operating (including income tax paid) (165)
Operating Cash Flow 644
Financial interests (267)
Dividends paid and received (53)
Capex (1,219)
Increase in capital 582
Others 108
Free Cash Flow (205)
Forex impact (177)
Acquisition & Perimeter impact (32)
Net Debt Variation (413)
5
CAPEX
Brazil: 50% of total CAPEX, mainly allocated for:
planting program,
cogen equipment; and
crushing capacity expansion.
c. 2/3rds of the 2015/16 investment program
already invested
Cereals: 40% of total CAPEX, mainly allocated for:
first phase of starch project in Brazil – over 80%
already invested;
capacity expansion in the starch & sweeteners
segment; and
BENP Lillebonne product diversification
Capital Increase
August 2012: R$370 million, 100% subscribed at
Tereos Internacional level to fund the expansion
and geographical diversification of cereal division
October 2012: R$212.2 million, capital injection
from Petrobras Biocombustível at Guarani
17. Debt
Increase mostly due to investment programs and currency effect
Net Debt/Adjusted EBITDA: 4.0x, stable sequentially
Tereos EU syndicated credit facility of €450 million extended by 2 years to June
2017, simplifying the existing structure and covenant requirements
17
Debt
In R$ Million
March 31,
2013
December 31,
2012
March 31,
2012
Change
Y-o-Y
Current 1,896 2,257 1,291 605
Non-current 2,493 2,196 2,384 109
Amortized cost (26) (20) (25) -1
Total Gross Debt 4,363 4,453 3,650 713
In € 1,624 1,812 1,402 222
In USD 1,741 1,793 1,652 89
In R$ 961 783 557 404
Other currencies 63 65 64 -1
Cash and Cash Equivalent (924) (678) (624) -300
Total Net Debt 3,439 3,755 3,026 413
Related Parties Net Debt 31 35 17 14
Total Net Debt + Related Parties 3,470 3,790 3,043 427
5
18. Sugarcane Brazil : Favorable outlook for sugarcane volumes, and cogeneration sales to double
Expected crushing to be around 20 million tonnes to increase industrial utilization rates and dilute
fixed costs; 2013/14 production mix adjusted more towards ethanol (36% to ~40%)
Planting program for 2013/14: 2/3rds performed of the 30,000 hectares expected
Guarani 2015/16 Program: Focus on improving industrial/agricultural efficiency, energy savings and
cost/G&A reduction to offset inflation
Despite low sugar prices, 40% of Guarani sugar sales hedging target already secured at 20.6 USD
cents/lb (as at 31st March, 2013)
Positive measures from Government supportive of ethanol prices (higher gasoline prices, anhydrous
blending back to 25% and federal tax incentives - PIS/COFINS elimination)
Cereals: Diversification in Europe and starch project in Brazil to be fully operational in 2013/14
Beginning of Brazilian corn plant production and progressive improvement expected in Lillebonne
Margins to remain under pressure in H1 2013/14 due to Lillebonne progressive ramp up and delayed
impact of hedging position
Sales growth expected for cereal division backed by improvement in mix, stable volumes and higher
perimeter
Extended partnership with Wilmar to enhance raw material diversification and market penetration in
China - approval expected in H2
18
Outlook6
