2. June 8th, 2010
2
Disclaimer
The information contained herein has been prepared by the Tereos Group solely for use at presentations held in connection with the corporate reorganization of the
Tereos Group (the “Transaction”).
Tereos Internacional has announced that it contemplates a primary offering of shares, after completion of the Transaction. Investors must carefully read the
prospectuses, especially the “Risk Factors” section prior to making any investment in Tereos Internacional’s shares, if and when any offering takes place.
This presentation does not constitute an offer to sell or a solicitation of offers to purchase or subscribe for, any shares in Açucar Guarani S.A. (“Guarani”) or
Tereos Internacional and nothing in this document constitutes investment advice. Any such offer or sale will take place by means of separate offering documents,
including prospectuses subject to approval by the Comissão de Valores Mobiliários (CVM) and the Autorité des Marchés Financiers (AMF) in the event of offers to
the public in Brazil and/or France, respectively.
Neither Guarani’s nor Tereos Internacional’s shares have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and
they may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act.
Neither Guarani nor Tereos Internacional intends to register any portion of the Guarani’s or Tereos Internacional’s shares in the United States or to conduct a public
offering in the United States. Neither this document nor any copy of it may be taken or transmitted into or distributed in the United States other than to qualified
institutional buyers (“QIBs”) as defined in Rule 144 A of the Securities Act, or into Canada, Australia or Japan or any other jurisdiction which prohibits the same.
The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession of this document comes should inform
themselves about, and observe, any such restrictions. Any failure to comply with the restrictions set forth in this paragraph may constitute a violation of United
States or other securities laws.
This document constitutes a marketing communication and, in the United Kingdom, is directed solely at persons who have professional experience in matters
relating to investments who fall within the definition of "investment professionals" in Article 19(5) of, or a person falling within Article 49(2) (High Net Worth
Companies etc) of, The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended of replaced) and in all cases are capable of being
categorized as a Professional Client or Eligible Counterparty for the purposes of the FSA conduct of business rules (all such persons together being referred to as
"relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or this document or any of its contents. The information in
this document is given in confidence and the recipients of this presentation should not engage in any behavior in relation to qualifying investments or related
investments (as defined in the Financial Services and Markets Act 2000 (the "FSMA") and the Code of Market Conduct (or equivalent) made pursuant to the FSMA
which would or might amount to market abuse for the purposes of the FSMA This document has not been approved by the UK Financial Services Authority.
In any Member State of the European Economic Area (the "EEA") which has implemented the Prospectus Directive (each, a "Relevant Member State") (other than
France) no action has been undertaken or will be undertaken to make an offer to the public of securities requiring the publication of a prospectus in any Relevant
Member State. As a result, securities may only be offered in Relevant Member States other than France: (a) to legal entities which are authorised or regulated to
operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to place securities; (b) to any legal entity which has two or
more of the following criteria: (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43 million; and (3) an
annual net turnover of more than €50 million, as per its last annual or consolidated account; and (c) in any other circumstances not requiring Tereos Internacional
or Guarani to publish a prospectus as provided under article 3(2) of the Prospectus Directive.
3. 3
Disclaimer (cont’d)
The information included in this presentation contains certain forward-looking statements, including statements with respect to management’s intentions, beliefs or
current expectations concerning among other things, Guarani’s and Tereos Internacional’s growth prospects and strategies and future growth in the sugar, starch
and ethanol markets worldwide. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a result of various factors, such as market conditions, government regulations, competitive
pressures, the performance of the Brazilian and global economies and the sugar, starch and ethanol industries. You are cautioned not to place undue reliance on
those forward looking statements, which speak only as of the date of this presentation. Neither Guarani nor Tereos Internacional undertakes any obligation to
publicly revise or update any forward-looking statements in light of new information or future events.
No representation or warranty, either express or implied, is made as to the accuracy, reliability or completeness of the information presented herein. The
information herein is only a summary and does not purport to be complete. Any opinion expressed herein is subject to change without notice, and Tereos and its
subsidiaries are under no obligation to update or keep current the information herein. Tereos and its affiliates, agents, directors, partners and employees accept no
liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material.
This presentation contains information about Tereos Internacional's markets, including its competitive positions. Unless otherwise specified, this information is
based on estimates prepared by the group and is purely indicative. These estimates are based on information obtained from customers, suppliers, business
organizations and other market participants. The group considers that these estimates are reasonable as of the date of this presentation; however, the
completeness and accuracy of the data underlying the estimates is not guaranteed and the group can offer no assurance that it has applied the same market
definitions as its competitors.
This presentation includes unaudited pro forma financial information relating to Tereos Internacional. This information is presented for illustrative purposes only
and is not indicative of the results of operations or the financial condition of Tereos Internacional that would have been achieved had the creation of Tereos
Internacional been completed as of an earlier date nor is it indicative of its future results of operations or financial condition.
This presentation includes information relating to Groupe Quartier Français, which was acquired by Tereos and to the structure and reorganisation of Tereos
Internacional’s Indian Ocean Pole following completion of this acquisition. This acquisition has been approved by French anti trust authority (Autorité de la
Concurrence).
June 8th, 2010
4. 4
Research guidelines
Research reports:
• Analysts must not be provided information (other than publicly available information) relating to the Company
that is not included in the Prospectus
• Must not include any ratings, price targets or recommendations for the Company (including language that may
imply a recommendation, such as “undervalued”)
• Must not be sent to press or other media and must not be distributed at any roadshow presentations
• Must contain the appropriate legends and disclaimers as detailed in the research guidelines
• May not include any projections beyond 2013 (and must not include Earnings Per Share or Dividend Per Share
forecasts)
• Must only be distributed to permitted / authorized recipients as set out in the final research guidelines
• References to the Offering should be kept to a minimum and in no case should they set price targets for the
securities being offered. There should be no references to the offering beyond those which have already been
publicly disclosed by the Company
Except as permitted under the final research guidelines, research reports may not be published or distributed
anywhere in the world during the Blackout Period
Except as permitted under the final research guidelines, during the Restricted Period (which has already begun
and continues until the end of the Blackout Period)
• Research reports may not be distributed or transmitted, in any way, into the United States or to US persons
• Research reports should not be distributed in Australia, Canada or Japan
• Research reports should only be prepared and delivered in physical form and not be distributed electronically
June 8th, 2010
5. 5
Presenters
9 years of experience in food and agro business
Former CEO of Guarani
CFO of Tereos
Alexis Duval
Strategy and Finance
18 years of experience in starch, sugar and ethanol business
Managing Director of Syral, BENP Lillebonne, and DVO
Pierre-Christophe
Duprat
European Cereal
Transformation Activities
25 years of experience in sugar and ethanol business
CEO of Guarani
Jacyr Costa
Brazilian Activities
Over 25 years of experience in food and agro business
Former CEO of Roquette (#2 starch producer in Europe)
Former Head of Rhodia Brasil
André Trucy
CEO
18 years of experience in sweeteners and ethanol business
Tereos Group Controller & Investor relations
Gwenaël Elies
Tereos Group Controller
& Investor relations
June 8th, 2010
7. 7
Tereos Internacional:
A new player to address new industry landscape
Strong history of growth of Tereos Group over the last decade and expansion
into new activities with strong growth potential
• 1996: Launch of starch activity
• 2000: First investment in sugarcane industry in Brazil by an international company
after sector’s liberalization
• 2007: IPO of Guarani on BM&FBOVESPA
• 2010: Investment by Petrobras in Guarani
Rapidly-consolidating sugar and ethanol industry in Brazil
• Change in scale
• Internationalization and entry of global players
Fast growing starch industry in emerging markets
Creation of Tereos Internacional to address new industry landscape and
implement our long-term growth strategy
June 8th, 2010
8. 8
June 8th, 2010
25%
Tereos, Tereos Internacional’s majority shareholder,
is a co-operative agro-industrial group
Tereos is a co-operative agro-industrial group
Tereos benefits from the commitment of its 12,000 co-operative members, who are French farmers
In 2010, Tereos strengthened its ties with 40,000 cereal growers through the creation of Tereos Agro-Industrie
Tereos Participations
Tereos
French Cereal growers
8 cooperatives ***
40 000 growers
Tereos Agro-Industrie
c. 60 %c. 35 %
Tereos Internacional
* SDA, Artenay, SBP, SDHF, Marconnelle
**Abbeville, Boiry, Chevrières, Escaudoeuvres, Marne & Aube, Meaux, Pont d’Ardres
***Théal, Axéréal, Cap Seine, Cohesis, Comptoir Agricole de Hochfelden, Noriap, Agrial, Unéal
c. 5%
Union SE – 5 cooperatives* Union BS – 7 cooperatives**
Public
75%
12 000 associate cooperative beet growers
c. 93%
9. 9
Creation of Tereos Internacional:
Transaction highlights
Creation of Tereos Internacional, a global leader in food ingredients &
bioenergy
• Combining Guarani with Tereos' cereal assets and Indian Ocean sugarcane
assets
• 2010 consolidated sales of R$5.0 Bn and EBITDA of R$802 MM (1)
A strategic combination to accelerate growth and play a major role in
agroindustry consolidation
• Change in scale to meet industry challenges
• Complementary assets and diversified product range with strong growth prospects
and global reach to serve global customer base
• Reduced cash flow volatility through diversification of raw materials, end products
and geographies
• Stronger balance sheet to seize growth opportunities and drive consolidation
Tereos Internacional to be incorporated in Brazil, headquartered in São Paulo,
listed on BM&FBOVESPA under Novo Mercado standards
(1) Financial year ended March 31st, 2010 – IFRS before acquisition of Groupe Quartier Français / Mandu - Audited figures
June 8th, 2010
10. 10
Petrobras partnership with Tereos Internacional:
Key transaction highlights
A win-win partnership
• A strategic investment that provides Petrobras Biocombustível with a significant
stake in a market leader
• The capital increase strengthens Guarani’s balance-sheet and provides the
company with new resources and expertise to accelerate development
• Guarani to accelerate development in co-generation and new-generation biofuel
Total investment of R$2.2 Bn in Guarani
• Investment by Petrobras Biocombustível of R$1.6 Bn over next 5 years (R$682
MM already invested) with an option to reach a stake of up to 49% in Guarani
• Option for Tereos Internacional to invest up to R$600 MM of new equity in Guarani
in the 12 months following Petrobras Biocombustível’s initial investment in Guarani
June 8th, 2010
11. 11
Two transforming transactions:
Transaction structure overview
Overview of structuring stepsOverview of structuring steps
Creation of Tereos Internacional, a new Brazilian
company with global operations
Contribution of European cereal assets, Indian
Ocean sugarcane assets and its Guarani stake by
Tereos to Tereos Internacional
Initial investment by Petrobras Biocombustível of
R$682 MM in Cruz Alta Participações (Guarani
subsidiary)
• To be converted into a 26.3% stake in Guarani
at R$5.83 p.s. at completion of the merger of
shares
Merger of Guarani’s shares into Tereos
Internacional to be approved on June 24th EGM
• Proposed exchange offer at EGM (in
accordance with the recommendation of the IC):
representing a 42%/ 58% relative weight of
Guarani/ Tereos EU equity values
• PF Tereos’ share in Tereos Internacional: 87%
R$929 MM subsequent investment by Petrobras
Biocombustível in Guarani over next 5 years to
reach a stake of up to a 45.76% (capped at 49.0%)
Up to R$600 MM subsequent investment by Tereos
Internacional in Guarani
Tereos Internacional post-merger structureTereos Internacional post-merger structure
Indian Ocean Assets European Cereal Assets
Tereos EU
(Contributed Assets)
Sugarcane Cereal
Free Float
100%
26.3% to 49.0%
13%87%
73.7% to 51.0%
(1) Based on Tereos’ 69% shareholding in Guarani and 100% in Tereos Internacional pre-merger of shares, as well as proposed exchange ratio of 42%/58%
June 8th, 2010
12. 12
Creating a global leader with critical scale
and increased investment capacity
Gaining critical scaleGaining critical scale Increased investment capacityIncreased investment capacity
1,359
199
2,701
5,011
752
Guarani Indian
Ocean
Starch
Products
Ethanol
Europe
Total
Revenues
15%
54%
27%
FY’10 Revenues (In R$ MM)
3.7x
Larger
Source: Audited Company Accounts (IFRS) - Financial year ended March 31st, 2010
Sales presence in 103 countries and on
4 continents
A leading sugarcane processor in Brazil and Indian
Ocean
A leading ethanol producer in Brazil and in Europe
A leading starch and starch sweeteners producer in
Europe
4%
R$1.6 Bn cash from Petrobras transaction
Potential additional capital increases at Tereos
Internacional level
• Objective of Tereos to remain the controlling
shareholder of Tereos Internacional
501
682
929
2,112
Pre
Transactions
Cash Balance
Petrobras
Investment
Subsequent
Petrobras
Investments
Total Cash Pro-
Forma
Source: Audited Company Accounts (IFRS) - Financial year ended March 31st, 2010
4.2x
Larger
Mar’10 Cash Balance (In R$ MM)
24%
44%
32%
June 8th, 2010
13. 13
Diversified activities
in most competitive agricultural regions
Source: Company Information
(1) Financials excluding Groupe Quartier Français and Mandu
(2) Includes 100% of Vertente (1.6 MM sugarcane; 110,000 sugar; 70,000 m3 ethanol), Mandu (2.8 MM; 142,000; 136,000) and Mozambique (0.43 MM; 38,000)
(3) La Reunion only; excludes Mozambique and Tanzania
Guarani Operations
European Starch
& Ethanol Operations
Indian Ocean Sugar
Operations
Revenue 09/10 (1)
(in R$ MM)
1,359 3,453 199
EBITDA 09/10 (1)
(in R$ MM)
295 474 33
Distinct Competitive
Advantage
Amongst lowest cost of sugar
and ethanol production in the
world
Cogeneration upside potential
Lowest net starch cost
producer amongst wheat-
based
Value-added specialty products
and sweeteners
Privileged access to raw
materials
Government-owned land in
Mozambique
Privileged access to Europe
Favourable regulatory
environment
Number of Production
Facilities
7 plants in the Northwest
region of São Paulo (2)
8 plants in France, Belgium,
Italy, Spain, UK
4 plants in Reunion Island,
Mozambique, Tanzania
Annual Production
09/10
Sugarcane crushed:
18.9 MM Tons (2)
Sugar Production:
1,248,000 Tons (2)
Ethanol Production:
688,000 m3 (2)
Cogeneration: 209.0 GWh
Starch Production:
1.8 MM Tons
Starch Sweeteners Production:
1.4 MM Tons
Alcohol / Ethanol Production:
460,000 m3
Sugarcane crushed:
1.9 MM Tons (3)
Sugar Production:
210,000 Tons (3)
Cogeneration: 232 MW (3)
Group overviewGroup overview
June 8th, 2010
14. 14
1996
2000
2002
2007
2008
2009
1993
2001
Acquisition of
Béghin-Say by
Union SDA and
Union BS;
Union SDA
becomes Tereos
Partnership with
ACOR for sugar
refining and
commercialization
in Spain
Creation
of Tereos
Acquisition of majority
stake in Groupe
Quartier Français (#1
sugar producer in La
Réunion )
2006
Launch of glucose
activity in
Marckolsheim
(Alsace)
5 starch plants of
Talfiie taken over
Acquisition of 50%
stake in Selby
plant (UK - potable
alcohol)
Establishment in
La Réunion via
acquisition of
Sucrerie Bois
Rouge
Petrobras
Biocombustível
R$1.6 Bn investment
in Guarani over 5
years for a 45.7%
stake
Acquisition of
50% stake in
Usina Vertente
Açucar
Guarani IPO
(€260 MM
primary
proceeds)
Source: Company Information
Tereos Events
Tereos Internacional Events
Tereos Internacional:
A track record of profitable growth
Establishment
of DVO
Establishment
of BENP
Lillebonne
First experience in
wheat ethanol
production in Origny
Joint Venture with Cosan in
Brasil, converted into a
minority participation and
sold in 2007
Acquisition of
Usina Mandu
2010
Acquisition of a 68%
stake in Guarani by
Tereos
June 8th, 2010
16. 16
Key strengths of Tereos Internacional
1 Leading positions in sugar, starches and ethanol
2
Complementary and innovative product portfolio serving attractive end
markets
3 Broad geographic footprint serving customers on a global basis
4 Efficient and resilient business model
5 Favourable growth trends
6 Proven track record of fast and profitable growth
June 8th, 2010
17. 17
11 Leading positions in sugar, starches and ethanol
(1) 2009/2010 rankings estimated by the company; includes 100% of Vertente (1.6 MM tons sugarcane), Mandu (2.8 MM) and Groupe Quartier Français
(2) Metric tons – Commercial basis – 09/10
Starches
Liquid and dry sweeteners
Polyols and low-carb
sweeteners
Fibres
Wheat proteins
Potable alcohol
Ethanol
Animal nutrition
Sugar
Ethanol
Power generation
1.8 MM tons starch and derivative
products (2)
#3 starch-based products producer in
Europe
#2 starch sweeteners producer in
Europe
#2 wheat proteins producer in Europe
#1 grain-based drinkable alcohol
producer in Europe
#5 ethanol producer in Europe,
#1 together with other beet processing
Tereos companies
21.5 MM tons sugarcane crushed (2)
#3 sugarcane processor worldwide
#3 sugar producer in Brazil
#3 ethanol producer in Brazil
Main Assets Main Products Competitive Highlights (1)
Sugarcane
Processing
CerealProcessing
June 8th, 2010
18. 18
Complementary and innovative product portfolio
serving attractive end markets
Attractive and resilient end marketsAttractive and resilient end markets Growing focus on specialty productsGrowing focus on specialty products
Tereos Internacional revenue breakdown by sector
(08/09)
Tereos Internacional specialty products revenues (1) (2)
(R$ MM)
Source: Unaudited Company Estimates; Financial year ended September 30th, 2010
Food /
Beverages
52%
Bioethanol /
Energy
26%
Cardboard /
Paper,
Chemistry,
Pharmac-
euticals
11%
Animal Nutrition
11%
High exposure to resilient, non-cyclical food and
beverages markets
Significant exposure to fast-growing ethanol
sector
Positioned to address multiple industry needs
1,383
238
01/02 08/09
Portfolio growing after addition of:
• Grain-based drinkable alcohol (#1 in Europe)
• Premium sugar (#2 in Brazil and #1 in
Mozambique)
• Polyols (#3 in Europe)
• Wheat proteins (#2 in Europe)
• Maltodextrins (#2 in Europe)
CAGR
29%
(1) Includes among others drinkable alcohols, polyols, modified wheat proteins, maltodextrins, fibres and premium sugar
(2) Exchange rate used: 1.3543US$/€, 0.5540US$/Brazilian Reals
22
June 8th, 2010
19. Broad geographic footprint serving customers on a
global basis
Sales in 103 countries on 4 continentsSales in 103 countries on 4 continents Over 3,500 customers served worldwideOver 3,500 customers served worldwide
Source: Unaudited Company Estimates
Brasil Foods
BP
Coca-Cola
Danone
GSK
Kraft Foods
InBev
Nestlé
Novartis
Pepsi
Petrobras
Pfizer
Sanofi
Shell
Total
Unilever
33
Tier 1 Market Tier 2 Market
19
June 8th, 2010
20. 20
Efficient and resilient business model
Focused on wheat in Europe –
Amongst lowest net starch costs worldwide
Focused on wheat in Europe –
Amongst lowest net starch costs worldwide
2009 Cereal grinding breakdown (% split of starch capacity)
Source: LMC International
Guarani's production facilities are clustered in the
Catanduva region in the North of São Paulo state
(higher tons/hectare and ATR/ton)
Source: AAF, Company Information
Net starch costs: net of co products
H2 2007- H1 2010 average
Net starch costs: net of co products
H2 2007- H1 2010 average
US$ per metric tons of commercial product
191 197 200
113 122
US Corn EU Wheat Thai Tapioca EU Corn China Corn
Sugarcane in São Paulo state (Brazil) –
Amongst most cost-competitive worldwide
Sugarcane in São Paulo state (Brazil) –
Amongst most cost-competitive worldwide
Sugarcane Content/Yield (kg ATR/tonne cane)/(tonnes/hectare)
Source: LMC International (2010)
Cane Yield (tonnes/ hectare)
CaneQuality(kgATR/tonneCane)
Mato
Grosso
Goiás
Minas
Gerais
Paraná
Piracicaba
Araçatuba
Assis
Jaú
137
139
141
143
145
147
70 75 80 85 90 95 100
Mato Grosso do Sul
Ribeirão Preto
Catanduva
44
28%
44%
72% 40%
16%
Syral Europe
Corn Wheat Potato
June 8th, 2010
21. 21
Efficient and resilient business model (cont’d)
Highly efficient production facilitiesHighly efficient production facilities Resiliency to raw material price fluctuationsResiliency to raw material price fluctuations
State-of-the-art, strategically located, large,
modern production facilities in Brazil, Europe and
Indian Ocean
Flexible industrial capabilities enabling Tereos
Internacional to adapt production between various
end products according to profitability
Energy cogeneration
Continuous search for cost reductions and
improvement of operating efficiency
• Improvement and optimization of production
process and logistics
• Improvement of facilities energy efficiency
Wheat purchasing price in Europe for ethanol
production based on ethanol selling price
Ability to transfer raw material price fluctuations to
end-products
Brazilian sugarcane purchasing price based on
sugar and ethanol selling price (“Consecana”)
• Superior sugarcane sourcing model based on
third-party supplies
44
June 8th, 2010
22. 4
13
35
5
14
3
10
22
17
3
12
23
26
24
29
51
South America Europe North America Asia
22
Favourable and sustained growth trends in sugar and
starch
Sugar: Brazil growth fueled by emerging marketsSugar: Brazil growth fueled by emerging markets Starch: Very strong growth in AsiaStarch: Very strong growth in Asia
Tereos Internacional’s footprint offers access to resilient markets and opportunities for growth in new geographies
Sugar production forecast: 2010 – 2015
(MM metric tons commercial basis)
Source: LMC International (2010), Company Estimates
4.4%(0.7)% 6.5%5.5%(1.7)%
2010 - 2015
CAGR
Starch & derivatives consumption forecast: 2010 – 2015
(MM metric tons commercial basis)
4.8% 4.1%2.4%
2010 - 2015
CAGR
Per Capita
Consumption
(kg, Starches &
Syrups - 2008)
Source: LMC International
26
18
50
10
24
18
30
20
37
41
9
44
58
13
68
Europe Central and
North
America
South
America
Asia Africa
05 10 15 05 10 15 05 10 15 05 10 15 05 10 15
00 05 10 15
7.4%
7.749.616.57.1
55
00 05 10 15 00 05 10 15 00 05 10 15
June 8th, 2010
23. 23
Favourable short- and medium-term growth trends –
bioenergy
Strong growth in key ethanol marketsStrong growth in key ethanol markets Favorable cogeneration dynamics in BrazilFavorable cogeneration dynamics in Brazil
Tereos Internacional has exposure to fast growing ethanol and cogeneration markets
Ethanol industry growth forecast: 2010 - 2015
(MM m3)
Source: LMC International, 2010
Brazil cogeneration energy sales forecast: 2002 - 2015
(GWh)
Cogeneration
Energy Sales /
Brazilian
Consumption
Source: Balanço Energético Nacional – MME; Departamento de
Planejamento Energético (DPE) – MME; UNICA forecast
1
11
6
8
15
24
50
45
57
0
6.8%2.0%0.2%
CAGR 13% CAGR 16%
2010 2015
Europe
750
35,770
7,745
2002 2009 2015
CAGR 40%
CAGR 29%
2010 - 2015
CAGR
55
2010 2015
Brazil
2010 2015
US
CAGR 9.7%
Corn Ethanol (US only) Cellulosic Ethanol (US only)
Advanced/ Sugarcane-Based Ethanol (US only)
47
74
June 8th, 2010
24. 2003/2004 Brow nfields Acquisitions Greenfields 2010/2011
2003/2004 Brow nfields Acquisitions Greenfields 2009/2010
24
Proven track record of fast and profitable growth
Source: Unaudited Company Estimates
(1) Includes 100% of Vertente (1.8 MM tons of sugarcane crushing capacity) and 100% of Mandu (3.5 MM)
European Assets: Rapid expansion of annual grinding capacityEuropean Assets: Rapid expansion of annual grinding capacity
Guarani: Rapid expansion of annual crushing capacityGuarani: Rapid expansion of annual crushing capacity
(MM tons)
CAGR 27.6%
21.5
8% Greenfields
59% Acquisitions
33% Brownfields
(1)
5 acquisitions since 2005: São José (2006),
Andrade (2007), Sena (2007), 50% of Vertente
(2010) and 100% of Mandu (2010)
Cluster of plants in the same region with high
integration of assets and raw material supply
Throughout their history, Tereos European assets and Guarani have grown both organically and via
acquisitions, and have developed an expertise in integrating and extracting synergies from acquired entities
66
(MM tons)
CAGR 37.5%
3.7
27% Greenfields
50% Acquisitions
23% Brownfields
1 major acquisition since 2004: Talfiie (2007)
3 greenfields: BENP Lillebone (2006), DVO
(2009) and Selby (2010 - start-up of operations
in 2011)
High degree of synergy extraction:
• Syral – Talfiie integration (€43 MM annual
savings – 5.5% of Talfiie sales)
June 8th, 2010
25. 25
Be a leader in the consolidation of the industry, in particular in Brazil
Further develop value-added products (refined sugar, specialty food
ingredients, premium alcohol)
Increase ethanol production capacity both through organic growth and
acquisitions
Further develop cogeneration business in Brazil and Indian Ocean Pole
Develop second generation biofuels
Enter fast-growing emerging markets both through acquisitions and
organically
Develop new premium products (health and nutrition, green chemistry,
premium alcohol)
An ambitious strategy to accelerate growth
SUGAR
BIOENERGY
STARCH
June 8th, 2010
26. 26
European Starch Operations
Financials
Conclusion
European Ethanol Operations
Indian Ocean Operations
Appendix
Brazilian Sugar & Ethanol Operations
Executive Summary
Investment Highlights
Pierre-Christophe Duprat
André Trucy
Pierre-Christophe Duprat
Alexis Duval
Jacyr Costa
Agenda
Alexis Duval / Gwenaël Elies
Alexis Duval
André Trucy
June 8th, 2010
27. 27
Worldwide sugar consumption increasing mainly in
emerging markets
Growth mainly driven by population growth, increasing consumer purchasing power and increasing
population migration from rural to urban areas, resulting in increased processed food consumption
Worldwide sugar consumption forecast per marketWorldwide sugar consumption forecast per market
(MM tons raw value)
2010 - 2015
CAGR
Source: LMC International, 2010
2.6% 2.5% 2.0% 0.1% (0.1)%
75.3
85.4
16.7 18.9
23.9 26.4
16.2 16.2
31.4 31.3
10 15 10 15 10 15 10 15 10 15
Asia Africa Central &
South America
North America Europe
June 8th, 2010
28. 46.0 46.3
52.1
48.9 50.5
53.6
17.8 18.8 19.8 21.6
24.3
28.4
38.7%
40.6%
37.9%
44.1%
48.1%
53.0%
2005 2006 2007 2008 2009 2010
0.8 0.7 0.5
24.9
5.4 3.6 1.9 1.0
Brazil
Thailand
Australia
Guatemala
South
Africa
Colombia
Cuba
Mauritius
28
Brazil: a leading position in sugar exports worldwide
Main sugar net exporters 2009/10EMain sugar net exporters 2009/10E Brazil’s leading positionBrazil’s leading position
(MM tons)
Source: LMC International, 2010
Brazil is expected to consolidate its leadership
among sugar exporters:
High productivity
Lack of farmable areas
Lack of irrigation
Higher costs
Lack of farmable areas
Lack of interest
Falling position
Unstable political environment
Australia
South Africa
Cuba
Thailand
Brazilian market share evolutionBrazilian market share evolution
MM Metric Tons
World Exports Brazil Exports Brazil as % of World
Source: USDA
June 8th, 2010
29. 29
Ethanol consumption is growing rapidly worldwide
Growth forecast of main ethanol markets (2010-2015)
Source : LMC International, 2010; EPA
47
74
2010 2015
CAGR
10%
USA
CAGR
13%
8
15
2010 2015
EU
24
50
2010 2015
Brazil
CAGR
16%
(MM m3)
June 8th, 2010
30. 30
Worldwide ethanol consumption also driven
by government mandates
Policies around the world have triggered the development of biofuel demand by targets and blending quotas
Three major consumer markets: USA, EU and Brazil
Source: EPA
(1) Notably sugarcane-based ethanol
(MM m3)
Mandatory use for renewable fuels in USMandatory use for renewable fuels in US
Corn Ethanol Cellulosic Ethanol Other 1(Advanced Fuel)
45.4
56.8 56.8
11.4
60.8
5.7
15.1
46.6
73.9
132.7
0.8 0.4
2010 2015 2022
June 8th, 2010
31. 31
Brazilian ethanol consumption is driven by the increase
in flex-fuel cars
Brazilian evolution of the auto fleet
• Since the launch of flex-fuel cars in Brazil in 2003, fuel consumption has been rapidly moving from
gasoline to ethanol
Fleet structure projection Vehicle sales per type
0
10
20
30
40
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Source: Anfavea, LMC International, 2010
1,564
1,712
1,920
2,488
2,864
91%
82%
82%
74%
49%
100%
51%
26%
18%
18%
9%
3,208
2004 2005 2006 2007 2008 2009
(‘000 units)Number of vehicles (MM)
CAGR 15.4 %
Flex-Fuel Gas, Diesel and “GNV”Ethanol Only Flex-Fuel Gasoline
June 8th, 2010
32. Ethanol producersEthanol producers
2008/2009 (MM m³)
32
Brazil: a leading global producer and exporter of ethanol
Source: LMC International, 2010
Main ethanol net exporters / importersMain ethanol net exporters / importers
There are over 40 countries producing ethanol and Brazil and the United States are the major producers
(>85% of global production)
• Brazil has far better capacity to export and still has significant room to expand its production
42.1
25.6
6.9 6.0
0.5 0.41.7 1.3
0.7 0.5
US Brazil EU China India Canada Thailand Russia Ukraine Colombia
2009 (MM m³)
Source: LMC International, 2010
3.3
0.1
(0.7)
(1.2) (1.4)
Brazil China US Others EU
June 8th, 2010
33. Brazil’s Competitive AdvantagesBrazil’s Competitive Advantages
• Second generation ethanol
technology will be transferred to
BP’s plants in Brazil after the
tests at the pilot plant in US
• Research facility working on
ethanol from cellulosic biomass
• Pilot plant producing fuel from
bagasse
• Petrobras Biocombustível and
Tereos Internacional agreed to
form a R&D committee in
Guarani, dedicated to new
technology, including the
development of next generation
biofuels
• R&D to produce sugarcane-
based diesel as well as chemical
specialties
• Amyris Brasil and Guarani
signed a letter of intent in
October 2009 to jointly study the
production of diesel fuel from
sugarcane molasses
33
Significant investment in Brazilian next generation
ethanol industry
Key InvestmentsKey Investments
Brazil has important competitive advantages,
mainly due to:
Bagasse from sugar and ethanol
production is already inside the mill,
which eliminates transport costs
Possibility of using straw and leaves
left on the fields by mechanical
harvesters to produce second
generation ethanol (cellulosic)
June 8th, 2010
34. Major oil companiesMajor oil companies
34
Brazilian sugarcane industry is attracting powerful
players
Several agrochemical multinationalsSeveral agrochemical multinationals
• 50% stake in Cosan
• 33% stake with Bunge in
Santa Juliana plant and in
Pedro Afonso’s cluster
• Up to 49% stake in
Guarani
• 50% stake in Tropical mill
• Investment in CanaVialis
(US$ 300 million)
Several trading/food multinationalsSeveral trading/food multinationals
InterestedinEthanol
InterestedinR&DInterestedinFood
June 8th, 2010
35. 35
Brazilian sugarcane industry:
a major consolidation opportunity
Worldwide crushed sugarcane (MM Metric Tons commercial basis: 2009/10 crop)
Source: Company Reports, UNICA
(1) Tereos Estimates pro-forma for 100% of Vertente (1.6MM of sugarcane crushed in 09/10) and 100% of Mandu (2.6MM of sugarcane crushed in 09/10)
and Sena plant capacity
Sugar & Ethanol is the Most Unconsolidated Sector Across Segments - Top 5 Market ShareSugar & Ethanol is the Most Unconsolidated Sector Across Segments - Top 5 Market Share
Sugarcane industry is highly regional and fragmented
Only 13% of market is controlled by top 10 players, there is a large opportunity for consolidation
74%
79%
92%
98% 98%
17%
22%
44% 46%
59%
Brazil: Sugar & Ethanol
08/09
Paper
2008
Soy
2008
Dairy
2008
Pulp
2008
Cement Orange
Juice
2004
Steel
2008
Beer
1H09
2004
52.6
29.1
20.8
21.5(1)
20.0
14.0 13.8 13.5 12.2 12.0 10.0 10.0
3.5
Cosan Dreyfus Mitr
Phol
Tereos
Int'l
British
Sugar
Bunge Santa
Terezinha
CSR Lincoln
Junqueira
São
Martinho
COFCO Bright
Foods
Shree
Renuka
Top 10 market share: 13 %
June 8th, 2010
2008
36. 36
Guarani’s key competitive advantages
1 Execution Track Record on Both Organic Growth and Acquisitions
2 Plants Strategically Located in Most Favorable Region in Brazil for Sugarcane
3 Plants Locations Maximizes Synergies
4 Sugarcane Supply Based on 3rd Parties Reduces Volatility
5 Value-Added Sugar Products for Global Customers
6 Energy Efficient and Highly Productive Facilities
7 R&D to Ensure Improved Agricultural Yields
8
Partnership with Petrobras Biocombustível Further Enhances Guarani’s Ability to
Play a Leading Role in Consolidation
June 8th, 2010
37. 37
Tereos Internacional / Petrobras Biocombustível:
Key transaction highlights
Petrobras Biocombustível and Tereos Internacional: joining forces to accelerate their
growth in the sugarcane/ bioenergy industry
• Guarani: third-largest sugarcane processor in Brazil
• Petrobras Biocombustível: wholly-owned subsidiary of Petrobras, focused on the
production of biofuels, with total planned investments of US$ 2.4 billion over the 2009-
2013 period
Major equity investment, through a capital increase, to allow Guarani to be a leading
player in the rapidly consolidating Brazilian S&E industry
• Investment by Petrobras Biocombustível: R$ 1.6 billion
• Investment by Tereos Internacional: up to R$ 600 million
A win-win partnership
• A strategic investment that provides Petrobras Biocombustível with a significant stake
in a market leader
• The capital increase strengthens Guarani’s balance-sheet and provides the company
with new resources and expertise to accelerate development
• Tereos Internacional and Petrobras Biocombustível to accelerate development in
co-generation and new-generation biofuel
June 8th, 2010
39. 39
(1) Pro-forma for Vertente and Mandu
Number of sugar and ethanol mills
Source: UDOP, UNICA, Datagro, Company Filings
AC
AL
ES
GO
MG
MS
MT
PB
PE
PR
RJ
RN
SE
SP
1
AM
1
PA
1
10
MA
4
TO
1
1
PI
CE
2
3
9
24
24
3
BA
5
45 6
8171
30
RS
1
22
33
21 43.9
7 21.4
7 18.5
3 7.8
2 10.8
Total 40 102.4
State of São Paulo
• 346.3 MM Tons of cane crushed in 08/09 harvest
• 171 plants
Brazil
• 569.3 MM Tons of cane
crushed in 08/09 harvest
• 428 plants
Mills
Cane
Crushed
(1)
Increased consolidation
power through relevant
capital allocation by both
Tereos Internacional and
Petrobras
171 sugar & ethanol
mills are located in
the State of São
Paulo
Petrobras Biocombustível
and Guarani granted a
right of first refusal on
acquisitions pursued by
the shareholders in the
State of São Paulo
Petrobras is responsible
for approximately 33% of
ethanol distribution in
Brazil
Strategic partnership with Petrobras Biocombustível:
Increased consolidation power
June 8th, 2010
40. 40
Mandu Transaction Highlights
Foundation:
• Established in 1980 by farmers from
Orlândia, Barretos and Guaíra
region, in the northwestern part of
the State of São Paulo. Mill’s
capacity has been duplicated
during the last five years
Crushing capacity:
• 3.5 million tons of sugarcane
Ownership:
• Acquisition of 100% of Usina
Mandú’s share capital by Cruz Alta
Participações (51%-owned by
Guarani and 49% by Petrobras
Biocombustível)
Acquisition price:
• R$345 million
Net debt:
• R$255.5 million as of
31/12/2009
Sugar and ethanol mill Synergy gains
Close proximity to other Guarani
industrial plants
• São José: 42 km
• Severínia: 76 km
• Vertente: 75 km
Secured sugarcane supply
Significant synergies:
• industrial, administrative,
agricultural and commercial
Vertente
Tanabi
Cruz Alta
Severínia
Andrade
São José
Mandú
June 8th, 2010
41. 108
131
231
121
186
295
30%
27% 27%
13%
16%
22%
04/05 05/06 06/07 07/08 08/09 09/10
41
Key financials summary (1)
Sugarcane processed Net revenues
EBITDA and EBITDA margin (3) Capex
3.9 4.4
5.4
8.2
12.7
14.514.4
03/04 04/05 05/06 06/07 07/08 08/09 09/10
Suppliers Own Sugarcane
366
490
847 906
1,193
1,359
04/05 05/06 06/07 07/08 08/09 09/10
(MM tons) (R$ MM)
463
772
291 268
2006/07 2007/08 2008/09 2009/10
(1) Includes Mozambique plant
(2) Due to Law 11638/07, data referring to the period 2007/08 have been reclassified and adjusted comparatively to previous published data –
Committed capex for 2008/09 and 2009/10
(3) Unadjusted EBITDA, for consistency purposes
(4) Guarani audited financial statements until 2007/08, Tereos Internacional accounts from 2008/09
Source: Company Information (4)
EBITDA (R$ MM) EBITDA margin (%) (R$ MM) (2)
Source: Company Information (4)
Source: Company Information (4) Source: Company Information (4)
CAGR: 24.5% CAGR: 30.0%
June 8th, 2010
42. 42
European Starch Operations
Financials
Concluding Remarks
European Ethanol Operations
Indian Ocean Operations
Appendix
Brazilian Sugar & Ethanol Operations
Executive Summary
Investment Highlights
Pierre-Christophe Duprat
Alexis Duval
André Trucy
Pierre-Christophe Duprat
Philippe Labro
Jacyr Costa
Agenda
June 8th, 2010
Alexis Duval
André Trucy
43. 43
Appendix
Business Overview
Financials and Strategy
Market Overview
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials Alexis Duval
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Philippe Labro
Concluding Remarks André Trucy
Agenda
June 8th, 2010
Alexis Duval
André Trucy
44. What is starch?
Sources of starchSources of starch
Wheat Corn Potato Tapioca
Starch structureStarch structure
Starch productsStarch products
Starch or amylum is a carbohydrate consisting of a large
number of glucose units joined together by glycosidic bonds
It is the most important carbohydrate in the human diet
It is produced by all vegetables as an energy store : it is
contained in cereals such as wheat, corn and rice or in roots
such as potatoes and tapioca
Starch consists of two types of molecules: the linear and
helical amylose and the branched amylopectin
Modifying starch means using physical or chemical treatments
such as enzymatic or acidic hydrolysis to cut / modify the
starch chain into a given set of smaller / different chains,
each set offering different properties
Pure starch is a white, tasteless and odourless powder that is
insoluble in cold water or alcohol. It can be used as such in
processed foods or in the paper industry
When hydrolysed and cut into smaller chains, starch is
transformed in glucose syrups
Starch or glucose can be further processed into modified
starches or into sweetening ingredients used in processed foods
Pure Starch Further Processed Starches
44
Glucose syrups
June 8th, 2010
45. 60
48
16 34
4
14 10
6
8
100 kg of Corn 100 kg of Wheat
45
Wheat and corn are processed to produce various
end-products based on a specific industrial know-how
Starch categoriesStarch categories
Native starches: raw unmodified starches, requiring only
physical processes. Used as ingredients in their natural form
Modified starches undergo one or more chemical and/or
thermal modifications. Used for enhancing starch’s functional
properties
Average industrial yieldAverage industrial yield
Source : Company Information
Starch Fibres Oil
Proteins / Gluten Water
Starch processingStarch processing
Native and modified starches
Starch derived ingredients
Wheat/Corn
Native StarchNative Starch
Modified StarchModified Starch
Proteins and other
Co-products
Proteins and other
Co-products
Glucose
BioethanolBioethanol
Potable AlcoholPotable Alcohol
Isoglucose and
Blends
Dextrose
MaltodextrinsMaltodextrins
PolyolsPolyols
Extraction
Hydrolysis /
purification
Fermentation
and distillation
Extraction
Hydrolysates
Wheat and corn yield
Starch derived ingredients (sweeteners) encompass the
category of ingredients produced or derived from starch
through acid or enzyme hydrolysis
• 1st generation sweeteners from starch are hydrolysates,
glucose syrups, isoglucose, crystalline dextrose
• 2nd generation sweeteners from starch are polyols (low
calorie sweeteners) and maltodextrins (baby food)
Wheat produces a lower content of starch than corn but
offers higher revenue from co-products especially
proteins
June 8th, 2010
46. Starch is used in multiple everyday applications
46
Main applications for starchMain applications for starch 2009 European breakdown2009 European breakdown
Modified
Starches
20%
Native Starches
23%
Starch-based
Sw eeteners
57%
By Product Category
By Application
Source: AAF, Company Information
Confectionary
& Beverages
26%
Other Non-
Food
15%
Other Food
34%
Paper &
Corrugated
Board
25%
Health & Nutrition
Clinical
Nutrition
Infant
Nutrition
Functional
Foods
Dietary
Supplements Sport Food
Food & Beverages
Confectionery Beverages Dairy Products Bakery
Fruit-Based
Preparation
Industrial
Bioethanol
Paper
and Board Bio-Plastics Polyurethane
Pharmaceutical and Personal Care
Tablets Sachets Injectables Oral Care Body Care
Fermentation
June 8th, 2010
47. 47
Starches and derivatives are produced worldwide, mainly
from corn, wheat, tapioca and potato
Source: Giract – Global Starches and Derivatives 2007 report
49%
98%
72%
65%
35%
2%
2%
16%
28%
30%
1%
2%
Europe North America South America Asia
Starch production by raw materialStarch production by raw material
Source: LMC International, 2009
Total: 72 MM commercial tons
Starch-based products breakdown by region 2008Starch-based products breakdown by region 2008
Corn Wheat Potato Tapioca Other
Asia
43%
Europe
18%
North
America
32%
Other
2%
South
America
5%
June 8th, 2010
48. 5.7 7.1
22.2
49.6
7.7
Eastern Europe South America EU 27 North America Asia
4.5% 4.6%
2.1%
4.1%
7.4%
Eastern Europe South America EU 27 North America Asia
48
Worldwide starch consumption is increasing rapidly
Starch & derivatives
Consumption growth by geography
Starch & derivatives
Consumption growth by geography
2010-2015e CAGR
Starch & derivatives
Per capita consumption by geography
Starch & derivatives
Per capita consumption by geography
Starch & derivatives
Consumption 2000-2005 and forecast 2010-2015
Starch & derivatives
Consumption 2000-2005 and forecast 2010-2015
Growing consumption of starch-based products, especially in Asia, is driven by GDP/capita growth,
increasing consumption of processed foods and increasing demand for health claims
(MM metric tons commercial basis)
Source: LMC International 2009
* Eastern Europe is comprised of Russia, Ukraine and Turkey
Kg, starches and syrups – 2008
Source: LMC International 2009
Source: LMC International 2009
1
3
9
22
17
1
3
10
23
26
2
4
11
24
35
2
5
13
29
51
Eastern
Europe*
South
America
EU 27 North
America
Asia
2000 2005 2010 2015
June 8th, 2010
49. Starch : an industry with further room for consolidation
49
Source: Company Estimates
The largest companies still have limited operations in fast-growing regions such as Asia or South America
In the starch sweeteners segment, the top 3 European players have a consolidated market share of more than 85%
Very large number of players in Asia
Starch-based product suppliers by regionStarch-based product suppliers by regionIndustry leadersIndustry leaders
Market Leader 2nd
/ 3rd
tier Weak/non-existingO
(Dry substance of primary starch capacity)
Source: Company Estimates, Giract - Global Starches and
Derivatives 2007 report
Latin AmericaAsiaEuropeN. America
O O
O O O
O
O
O O
9%
9%
5%
7%
10%
23%
77%
15%
90%
81%
72%
1%
Europe North America South America Asia
Top 5 Top 10 Other
June 8th, 2010
50. 50
Business Overview
Appendix
Financials and Strategy
Market Overview
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials Alexis Duval
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Philippe Labro
Concluding Remarks André Trucy
Agenda
June 8th, 2010
Alexis Duval
André Trucy
51. 1.8
1.4 1.3
0.6
0.2 0.1
Cargill Roquette Tate & Lyle /
Hungrana
Chamtor Agrana
Syral: A high-growth story
51
Syral 2009 rankingsSyral 2009 rankingsHistoryHistory
1.8 MM tons starch and derivative products
#3 starch-based products producer in Europe
#2 starch sweeteners producer in Europe
#2 wheat protein producer worldwide
#1 grain alcohol producer in Europe
Production of hydrolysates for the fermentation
industry
1993
1996
Start Up of the Activity in Marckolsheim
Start up of Syral’s glucose activity for the food
industry, Staral JV with Jungbunzlauer in the
corn starch business
Products Portfolio Diversification
2001
Portfolio expansion (dry products, polyols),
wheat starch plant built
2003
Syral acquires 100% of Staral, Syral
strengthens its position in food glucoses
2006
Tereos and the French cereal partners acquire
100% of Syral
TALFIIE Integration
2007
Acquisition of TALFIIE, Syral becomes the 3rd
European starch-glucose producer
2007-10
Improved position in alcohol and specialties
with a 3-year investment programme nearly
completed
Source : Company Information
3.0
2.4
1.8
1.0
0.7
0.4
Cargill Roquette Tate & Lyle /
Hungrana
Avebe Emsland
Starch and derivatives products – Europe (MM commercial tons)
Starch sweeteners – Europe (MM commercial tons)
Source : Company estimates
Source : Company estimates
June 8th, 2010
52. Syral’s key strengths
52
Focused on wheat: low net starch costs, driver of competitive advantage1
Diversified customer base and resilient end-markets2
A shift in portfolio to high value-added products3
Large, state-of-the-art facilities close to end-markets4
Long-term partnerships with grain suppliers5
R&D: flexible capabilities and a worldwide leadership in wheat proteins
Resilient cash flow generation
6
7
June 8th, 2010
53. Source: LMC International 2010
28%
44%
72% 40%
16%
Syral Europe
Corn Wheat Potato
53
Focus on wheat: low net starch costs, driver of
competitive advantage
2009 cereal grinding breakdown2009 cereal grinding breakdown
(% split of starch capacity)
In a global and competitive landscape, wheat is one of the
cheapest established raw materials for starch thanks to
strong demand for wheat proteins (food / feed applications)
Syral net starch cost lower than average thanks to higher
value from co-products and sourcing from high-yield
regions in wheat and corn
Source: AAF, Company Information
3-year average production cost of starches3-year average production cost of starches
11
Wheat purchased at worldwide market price
No more production and export refunds in the EU
Markets served locally (e.g : glucose syrups which have to
be delivered just on time at high temperature)
113
122
191 197 200
US Corn EU Wheat Thaï Tapioca EU Corn China Corn
(US$ per metric tons of commercial product / H2 2007- H1 2010)
June 8th, 2010
54. 54
Diversified customer base and resilient end-markets
CountriesCountries
2009-10 Total: R$ 2,701MM
Syral has a portfolio of 1,500 customers and serves 2,500 facilities worldwide
No single customer represents more than 2% of Syral’s revenues
Source: Company Information
22
France
19%
UK
17%
Germany
14%
Rest of World
5%
Rest of
Europe
45%
SegmentsSegments
2009-10 Total: R$ 2,701MM
Food &
Beverage,
Baby Food
70%
Animal Feed
15%
Other Non
Food
15%
June 8th, 2010
55. 9%35%79%
74%
54%21%
17%
11%
FY 1997* FY2006* FY2009*
55
A shift in portfolio to high value-added products
Gross marginGross marginVolumes (mm tons)Volumes (mm tons)
Ageing population, health trends in nutrition and new regulations
provide opportunities to develop high value-added ingredients
Source: Company Information
* Data as of September 30th
33
Gross margin
level
Hydrolysates
Glucose syrups
Isoglucose &
Blends
Dextrose
Starches
Alcohols
Polyols
Maltodextrins
0.2
0.4
1.8
x9
June 8th, 2010
56. 56
Large, state-of-the-art facilities close to end-markets
and located in the most productive regions
6 plants close to 80% of the EU 27 market
All owned by Syral
(Selby and Saluzzo in JV with Frandino Group)
High production capacities
Highly efficient process with cogeneration
Adapted to product diversification
Close to high-yield regions for wheat and corn
(Alsace, Picardie, UK wheat belt…)
44
Aalst
Saluzzo
Marckolsheim
Nesle
Selby
Zaragoza
Aalst
Saluzzo
Marckolsheim
Nesle
Selby
Zaragoza
Key advantagesKey advantagesProduction facilitiesProduction facilities
Marckholsheim (France)Nesle (France)
Aalst (Belgium) Saluzzo (Italy)
Zaragoza (Spain) Selby (UK)
Built in 1991
Grinding capacity:
900kt
Built in 1993
Grinding capacity:
600kt
Built in 1984
Renovated in 2000s
Grinding capacity:
500kt
Built in 1965
Renovated in 2000s
Grinding capacity:
400kt
Built in 1968
Renovated in 2000s
Grinding capacity:
300kt
Under construction
Production to begin in
2011
Grinding capacity:
120kt
June 8th, 2010
57. 57
Long-term partnerships with competitive grain
suppliers
Security of supply to Tereos Internacional
and its clients
• 40 000 growers
• 4mt consumed by Tereos Internacional compared
to 15mt collected by the cereal partners
Strong support
• 20-year partnership and long-term shareholding
perspective
• Large agribusiness groups
• Perfect understanding of Tereos Internacional’s
market environment and challenges
Joint collaboration
• To protect and promote a sustainable
environment
• To anticipate future regulatory requirements and
food-safety standards
55
High-yield regionsHigh-yield regionsStrong business supportStrong business support
10.2
8.4
4.7
Alsace (France) South West (France) World
8.4
7.8
2.8
Picardie (France) UK World
10-year average (2000-2009) wheat yield per region
(tons of wheat / ha)
Source : FranceAgriMer, USDA
Source : FranceAgriMer, USDA
10-year average (2000-2009) corn yield per region
(tons of corn / ha)
June 8th, 2010
58. R&D: flexible capabilities…
Innovative research centreInnovative research centre
New Application Research Centre in Marckolsheim inaugurated
on June 4th 2009
• Conduct joint research with customers
• Test ingredients in new recipes and new applications
• Validate new products in food and technical fields
Long-standing partnershipsLong-standing partnerships
Public research institutes:
• Institut Pasteur de Lille in France,
• University of Leuven in Belgium
• Technical Research Center (VTT) in Finland
• Frauenhofer Institute in Germany
Various hospitals in France and Spain (clinical studies)
R&D contracts with certain clients to conduct joint research
programs, especially in the food industry
Develop new specialties (health and nutrition)
Pursue the development of sweetening blends (glucose and
ingredients) and their applications
Capitalize on our strength in cereal transformation to seize
opportunities in “green chemistry” and in second generation bio-
fuels
Strong expertise and ambitionStrong expertise and ambition
Consortium Domain
Industrial
Stakeholder
Period Objectives
Healthgrain
Healthcare
& Nutrition
CSM, Buhler 2005-10
Valorisation of cereal
components for well-being
and disease risk reduction
Impaxos
Healthcare
& Nutrition
Fugeia,
Venture
Funds
2005-09
Extraction process of wheat
AXOS and study of health
impact
Cationics
Industrial
Starches
BASF,
Grunewald,
Kaptol
2008-11
Influence of chemical
additives on the interaction
of cationic starches with
cellulose
Consortium research : sample projects
58
Source: Company Information
66
June 8th, 2010
59. … and worldwide leadership in wheat proteins
Syral has developed from an early stage specific R&D aimed at extracting value from co-products
This development has led to a significant share of co-products in Syral’s turnover and strongly contributes to lower
the net starch cost
Deamidated proteins
Bakery food / Feed
1870’s
1975
1985
Extraction of basic co-products Basic food / Feed
1994
2006
2008
…
Food emulsifier / Pet food meat ingredient
Cereals, Soups / Calf milk replacer
Foaming agent, Dressings, Dough improver
High-energy supplement
(e.g. sportsmen, elderly, obesity control)
Extraction of Vital Wheat Gluten
Enzymatic hydrolyzed proteins
Fractionated proteins
Plasticized proteins
Enzymatic hydrolyzed and fractionated
proteins
Bioplastics
ApplicationsApplicationsMarket LaunchMarket Launch Added value products over timeAdded value products over time
59
66
June 8th, 2010
60. Resilient cash flow generation
60
77
Pricing power:
Leading position in a concentrated European starch market, strengthening pricing power
Resilient end-markets:
Significant exposure to the resilient food, baby food and pharmaceutical sectors
High-value products:
High value-added specialty products portfolio, source of strong profitability
Competitive production process:
Production costs amongst the lowest in the industry thanks to high tech plants and
efficient restructuring
Low net starch cost:
Wheat-based production enables the lowest net starch cost in Europe
June 8th, 2010
61. 61
Financials and Strategy
Business Overview
Appendix
Market Overview
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials Alexis Duval
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Philippe Labro
Concluding Remarks André Trucy
Agenda
June 8th, 2010
Alexis Duval
André Trucy
62. 3,470
2,701
0
1,000
2,000
3,000
4,000
08/09 09/10
185
122
0
50
100
150
200
08/09 09/10
221
270
0
100
200
300
08/09 09/10
Syral key financials summary (1)
62
EBITDA and EBITDA marginEBITDA and EBITDA margin
EBITDA – Capex(2)EBITDA – Capex(2)
RevenueRevenue
Capex(2)Capex(2)
(R$ MM) (R$ MM)
(R$ MM) (R$ MM)
(1) Syral’s ethanol figures are included in the European Starch Operations segment
(2) Capex refer to committed capex only
406 392
15%12%
0
100
200
300
400
500
08/09 09/10
0%
4%
8%
12%
16%
20%
EBITDA EBITDA Margin
Source: Company Information (at March 31st)
Improvement in EBITDA margin despite a 22.2% decrease in revenues due to a 28.0% decrease in average grain prices
Source: Company Information (at March 31st) Source: Company Information (at March 31st)
Source: Company Information (at March 31st)
June 8th, 2010
63. 63
Syral strategy: accelerate growth through innovative
products and expansion in fast growing markets
Leverage on European leadership position to develop worldwide
• E.g. specialty sweeteners, proteins & fibers used in the food industry
Further develop R&D through partnerships and customer collaboration
• E.g. pharma (enteral and parenteral nutrition), babyfood (new formulations)
Develop in green chemistry, where new molecules offer significant untapped potential
• Leverage on 30 years of experience in non-food applications and on joint-research with
international majors
Innovative
products
Leveraging on Tereos Internacional’s strengths to take positions on fast-growing markets
• Eastern Europe (growth twice that of Western Europe)
• Asia (accompany the expansion of clients’ business)
• Latin America (benefit from Guarani’s market presence)
Fast Growing
Markets
Seize opportunities to consolidate our positions in Europe : potato starch regime reform and
further sugar regime reform might offer development opportunities
Europe
June 8th, 2010
64. Strong potential for external growth
64
Consolidation opportunitiesConsolidation opportunitiesFavourable growth prospectsFavourable growth prospects
Syral expansion criteriaSyral expansion criteria Numerous acquisition opportunitiesNumerous acquisition opportunities
Accompany our customers in their development in fast
growing markets
Be ready to seize opportunities in more mature markets
based on value creation and integration potential
Build a world leader in starch and derivatives with
diversified portfolio
Number of
suppliers
Top 10
capacity
Eastern Europe 12 99.0%
EU 27 23 91.4%
North America 15 99.4%
South America 13 77.4%
Asia 347 22.8%
Asia is the largest market and the least consolidated
2 4
11
24
35
2 5
13
29
51
Eastern
Europe
South
America
EU 27 North
America
Asia
CAGR
7.4%
CAGR
4.8%
CAGR
4.1%
CAGR
2.1%
CAGR
4.5%
Starch & derivatives consumption forecast: 2010 - 2015
(MM metric tons commercial basis)
2010 2015 2010 2015 2010 2015 2010 2015 2010 2015
2010 – 2015 CAGR
Source: Giract - Global Starches and Derivatives 2007 report
Source: LMC International 2009 Source: LMC International 2009, Giract - Global Starches and Derivatives 2007 report
0%
20%
40%
60%
80%
100%
0 25 75 100
2015 Market size (consumption in commercial metric tons)
RegionalTop10marketshare
% % % %
Eastern Europe South America EU 27 North America Asia
Top 10 Other
June 8th, 2010
65. Syral’s proven track record of profitable growth
PRODUCTION
New process
New market dynamics
Creating product value
FROM…
1 greenfield plant in France
~150 employees
TO…
6 plants across Europe
Large, state-of-the-art facilities
~1,300 employees
65
1997 2010GROWING EXPERTISE
*€237m, based on average R$/€ of R$2.64/€ (2010)
PRODUCTS
TO…
~3,000
R$
627m
Specialties* References
FROM…
No sales of specialties
~100 references
TO…
#3 in Europe
Sales across 4 continents
~1,500 customers
Selling in new geographies
Developing recognized R&D
capabilities
Integrating new cultures
Motivating people
BUSINESS
DEVELOPMENT
FROM…
100% sales in Western Europe
~100 customers
Greenfields
Joint ventures
Acquisitions
FINANCIALS
Concrete results TO…
R$ 2,701m
R$ 392m
Turnover EBITDA
FROM…
A small local
company
June 8th, 2010
66. 66
European Starch Operations
Financials
Conclusion
European Ethanol Operations
Indian Ocean Operations
Appendix
Brazilian Sugar & Ethanol Operations
Executive Summary
Investment Highlights
Pierre-Christophe Duprat
André Trucy
Pierre-Christophe Duprat
Alexis Duval
Agenda
Alexis Duval / Gwenaël Elies
June 8th, 2010
Alexis Duval
André Trucy
Jacyr Costa
67. 67
Market Overview
Financials and Strategy
Business Overview
Appendix
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Alexis Duval
Conclusion André Trucy
Agenda
Alexis Duval / Gwenaël Elies
June 8th, 2010
Alexis Duval
André Trucy
68. 68
Tereos Internacional produces anhydrous ethanol as well
as potable alcohol and absolute alcohol
Starch
Hydrolysis
Fermentation
Distillation
Rectification
Dehydratation
Starch co-
products
Cereals
Hydrous / Raw
Ethanol
RectificationDehydratation
Potable Alcohol
Absolute
Alcohol
Anhydrous
Ethanol
Ethanol Alcohol
Milling
Ethanol production processEthanol production process
Everyday application for end-products
• Anhydrous ethanol used as bioethanol
• Potable Alcohol used by the spirits industry
• Absolute Alcohol used for perfumes,
cosmetics and chemical industries
Cereal and Cereal-based raw material
• Wheat / Barley / Triticale / Corn
• Starch and starch co-products derived from
cereals
Industrial process extracts glucose and
transforms it into wine then raw alcohol
• Hydrolysis / fermentation / distillation
From raw material to raw ethanol
From raw ethanol to end-products
June 8th, 2010
69. 69
European ethanol and alcohol markets
Ethanol and Alcohol ProductionEthanol and Alcohol Production
Ethanol and Alcohol Consumption 2005-2010Ethanol and Alcohol Consumption 2005-2010Ethanol and Alcohol ConsumptionEthanol and Alcohol Consumption
Ethanol and Alcohol ProducersEthanol and Alcohol Producers
The European market is divided into a very dynamic fuel
market and a more mature alcohol market
Consumption in EU has been rising sharply in recent
years boosted by EU directives
• From 3.7 to 8.3 million cubic meters over the 2005-2009
period
• Major markets are France, Germany, Spain, Sweden,
UK and Czech Republic
In 2009, EU produced 6.9 million cubic meters; ie 7.5% of
global ethanol production, versus 6.4% in 2005
Largest producers are France, Germany, Spain, Czech
Republic and Poland
UK and Netherland are expected to become significant
producers in the coming years
(1) Including Tereos France (from sugarbeet) and Tereos Internacional
Source: Company Information
EU Ethanol and Alcohol Production Capacities (MM m3)
1.90
0.150.200.21
0.360.40
0.520.58
0.78
1.091.22
1.2 1.9
2.8 3.3
5.2
7.8
2.5
2.7
3.1
3.4
3.1
3.5
2005 2006 2007 2008 2009 2010E
Ethanol Alcohol
3.7
4.6
5.9
6.7
8.3
11.3
Total
Tereos
Group (1)
Crop-
Energies/
Agrana
Abengoa Cristal
Union
Tereos
Int’l
(Europe)
Ensus Verbio Agro-
Etanol
IMA Alco
Group
Others
Source: LMC International, 2010
June 8th, 2010
70. A favorable regulatory environment for biofuels
in Europe
Volume objectives as per European DirectivesVolume objectives as per European Directives
A volume objective in terms of energy derived from
renewable fuel for transport
• 2 % in 2005
• 5.75 % in 2010
• 10 % in 2020
2020 Objectives volume ethanol equivalence
• Estimated EU Ethanol consumption (MM cubic meters):
• The 10% target of energy derived from renewable fuel
should lead to a c. 17MM cubic meters bio-ethanol
demand in 2020
European market is subject to low tariffs. Most imports
in Europe come from Brazil, other Latin American
countries, Asia and US
2010 EU biofuels blending mandates2010 EU biofuels blending mandates
70
7.8
17.2
0
5
10
15
20
2010 (estimated) 2020 (projected)
Source: LMC International, Company Information
NORWAY (3.5% vol.)
3.5% (vol.) for biodiesel
3.5% (vol.) for ethanol
SWEDEN
5.75% (indicative)
FINLAND
5.75%
ESTONIA, LATVIA, LITHUANIA
5.75% (indicative)
GERMANY (6.25%)
6.75%
POLAND
5.75%
CZECH REPUBLIC
4.5% for biodiesel (vol.)
3.5% for ethanol (vol.)
SLOVAKIA
5.75% (indicative)
GREECE
5.75% (indicative)
ROMANIA (5.75%)
4% for biodiesel (vol.)
4% for ethanol (vol.)
BULGARIA (3.5%)
Min. 2% (vol.) for biodiesel from March 10
Min. 4% (vol.) for biodiesel from Sept 10
CYPRUS
2.5%
AUSTRIA (5.75%)
Min. 6.3% for biodiesel
Min. 3.4% for ethanol
ITALY
5.75%
SLOVENIA
5%
SPAIN (5.83%)
Min. 3.9% for biodiesel
Min. 3.9% for ethanol
FRANCE (7%)
7% for biodiesel
7% for ethanol
PORTUGAL
5.75% (indicative)
BELGIUM
4% (vol.)
NETHERLANDS (4% vol.)
Min. 3.5% for biodiesel
Min. 3.5% for ethanol
IRELAND
4% (vol.) from Jul 10
UK
5.75%
Source: Kingsman, FAO
June 8th, 2010
71. 71
Spirits market: growth driven by premium alcohol
IWSR has projected the global spirits market will grow by 0.4% per year between 2008 and 2013
Quality differentiation is a key element for major spirits companies
Strong investments are made by industry players in “premium products”
(brand development, distribution networks, advertisement investments…)
Spirits
Industry
Dynamics
Premium: A
Long-Term
Fundamental
Trend
Premium segment has grown ten times faster than
standard spirits in the last 20 years
Europe and US are the largest premium markets
Demand for premium products is increasing in emerging
countries
3,5% 5,7%
13,2%
19,9%
23,0%
1970 1980 1990 2000 2009
Portion of premium products in the US
Spirits Industry (volume)
Source: DISCUS, February 2010
Switch from brown alcohol to grain-based white alcohol trend
“Premiumization” trend, strong correlation to GDP growth
Attractive growth prospects in emerging markets
Spirits Market
Opportunities
June 8th, 2010
72. 72
Agenda
Business Overview
Market Overview
Financials and Strategy
Appendix
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Alexis Duval
Conclusion André Trucy
Alexis Duval / Gwenaël Elies
June 8th, 2010
Alexis Duval
André Trucy
73. 73
European Ethanol Operations: brief overview
In Europe, Tereos Internacional is a leading producer of grain-based alcohol:
• Bioethanol, thanks to a 15-year experience in transforming cereals into biofuels
• Potable Alcohol dedicated to spirits, thanks to an 80-year experience in producing high-quality potable alcohol,
inherited from the Tereos Group
Tereos Internacional enjoys a strong competitive position within the European market:
• A leader in the bioethanol market, combining its own production and the distribution of Tereos France ethanol
• The leader in the European market of potable alcohol from grain (c.40% market share)
Production and marketing capacitiesProduction and marketing capacities
In m3
Production and sale of alcohol and
bioethanol derived from starch and starch
co-products
190,000 180,000 180,000
Production and sale of grain-based
ethanol
300,000 280,000 280,000
Production and sale of a premium quality
grain-based potable alcohol
30,000 20,000 20,000
Total 520,000 480,000 480,000
Tereos France Ethanol Production 240,000
Total Sales 720,000
Total Europe c. 7,000,000
Source: Company Information
(1) On a model-year basis as DVO just started its operation
Sales (1)Production (1)
Installed
Capacities
Activities
also
markets production of
Tereos Group’s
bioethanol operations
June 8th, 2010
74. 74
SYRAL plants: synergies between ethanol and starch
NESLE (France)
• Potable and absolute alcohol and
bioethanol produced from starch
and starch co-products
• Started in 1993
• Production capacity: 90,000m3
Production facilitiesProduction facilities Key advantagesKey advantages
Nesle, Aalst and Saluzzo:
• Self-supply at a very low cost as starch and starch co-
products are internally produced in Tereos Internacional
plants
Selby: new efficient facility backed by long term contracts
• Opportunity to adjust sales prices based on variation of
production costs (cereals and energy prices): secured
margins…
• … and visibility (100% of volume sold in advance)
AALST (Belgium)
• Bioethanol produced from starch
co-products
• Started in 2008
• Production capacity: 50,000m3
SALUZZO (Italy)
• Alcohol produced from starch and
starch co-products
• Started in 2009
• Production capacity: 50,000m3
SELBY (UK)
• High quality grain-based alcohol
produced from wheat
• Expected to begin operations in
2011
• Production capacity: 45,000m3
Starch and starch
co products
Potable alcohol
and bioethanol
Wheat raw
materials
June 8th, 2010
75. 75
BENP Lillebonne: a state of the art ethanol production
facility
HistoryHistory
Key advantagesKey advantages
Cereals purchase price related to fuel ethanol and DDGS prices
Strong relationship with cereal partners (40,000) which
guarantees the supply of the Lillebonne Factory
Best-in-class in Europe regarding process efficiency benefiting
from the long-term experience of Tereos Group in wheat bio-
ethanol
• High yields (bioethanol per ton of wheat)
• Low energy consumption
• A process mixing different raw materials: flexibility regarding
prices / yields
An upcoming investment to extract higher value from the protein
contained in the grain
An ideal location: close to Rouen and Le Havre
Production facilityProduction facility
Fuel ethanol production
• From cereals
Fuel ethanol sales from
• Lillebonne production
• Tereos French facilities
production
Start of wheat bioethanol production and creation of
BENP Origny
Creation of the BENP Lillebonne subsidiary with
cereal partners
Investment on Lillebonne site to transform 760,000
tons of wheat in 300,000 m3 of fuel ethanol
Launch of the Lillebonne fuel ethanol plant
Expansion of raw materials portfolio to new cereals
(barley, triticale, corn)
Lillebonne fuel ethanol plant at a glance
• 300,000 m3 of bioethanol
• 240,000 tons of DDGS
• 760,000 tons of processed cereals
Upstream Downstream
Near Rouen, the first
French cereal harbor
Located in the first French
refining area
1993
2006
2006/07
2007
2009
June 8th, 2010
76. 76
DVO: dedicated to high quality potable alcohol from
grains
HistoryHistory
Strong visibility and margin stabilityStrong visibility and margin stability
Strong visibility
• Production and sales backed by long term contracts
Margin stability
• Strong relationships with cereal partners (40,000) that
collect annually 15MM tons of cereals
• Indexation of selling prices
- on cereal prices
- on energy cost
Production facilityProduction facility
Creation of DVO
Investments and industrials tests
Administrative certification and start of activities
Client certification and start of consumers tests
DVO delivering Bacardi-MartiniDVO delivering Bacardi-Martini
2008: Agreement with the Bacardi-Martini Group for the supply
of grain alcohol for some of its major brands, including:12/2008
2009
12/2009
02/2010
A facility dedicated to high quality potable
alcohol
• A premium oriented production
Built in 2009
• High standard requirements
Production capacity
• Potable Alcohol – 30,000 m3
• DDGS – 30,000 tons
• Grey Goose, a well known
super premium vodka
– The top 1 premium vodka
– The “World’s Best Tasting
Vodka”
– Very strong brand identity
– Very strong growth during
the last few years
– Worldwide distribution
June 8th, 2010
77. 77
Next generation biofuels: Tereos Internacional
strongly involved
Tereos Internacional enjoys long experience in ethanol R&D
• The first initiative dates back to 1993 with the creation of Bio Ethanol Nord Picardie (BENP)
Numerous internal initiatives, on a short-term basis, in order to improve yields / efficiency of existing processes and
technologies
• Development of 1.1 / 1.2 / 1.3 generation biofuels …
A strong focus on R&D within long-term partnerships, consortium and strong cooperation level with other
companies or universities
• Development of 2G and 3G biofuels
Name of the
consortium
Research
domain
Coordinator
Industrial
shareholders
Global
budget
Period Objectives
Green chemistry €20M 2010/2014
Valorization of Biomass for the
production of chemical building
blocks (bio and chemical conversion)
Procethol 2G
Cellulosic
Ethanol
€74M 2008/2015
Cellulosic ethanol through steam/acid
conversion
ChimioSub
Cellulosic
Ethanol
€4M 2010/2012
Cellulosic & hemicellulose cracking
with sub-critical water
Deinol
Hemicellulosic
Ethanol
€21M 2010/2013
Ethanol from direct fermentation of
bran by a bacteria
From G1
Rectification
June 8th, 2010
78. Financials and Strategy
Business Overview
78
Market Overview
Appendix
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations Pierre-Christophe Duprat
Financials
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations Alexis Duval
Conclusion André Trucy
Agenda
Alexis Duval / Gwenaël Elies
June 8th, 2010
Alexis Duval
André Trucy
79. 15
53
45
0
25
50
75
100
08/09 09/10
BENPL DVO
60
-36
22
-50
-25
0
25
50
75
08/09 09/10
European Ethanol & Alcohol Key Financials
79
EBITDA and EBITDA margin(1)EBITDA and EBITDA margin(1)
EBITDA – Capex(3)EBITDA – Capex(3)
Revenue(1)Revenue(1)
Capex(3)Capex(3)
(R$ MM) (R$ MM)
(R$ MM) (R$ MM)
(1) Information only related to BENP Lillebonne as Syral’s ethanol figures are included in the European Starch Operations segment and as DVO just started its
operation - (2) Trading activities on behalf of the Tereos Group - (3) Capex figures refer to committed capex and not to cash-out-capex
Source: Company Information
Source: Company Information Source: Company Information
Source: Company Information
412 473
322 279
0
250
500
750
1000
08/09 09/10
Revenue Revenue from trading activities
734 752
(2)
17
82
2.3%
10.9%
4.2%
17.3%
0
30
60
90
08/09 09/10
0%
4%
8%
12%
16%
20%
EBITDA EBITDA Margin EBITDA Margin (excl. trading activities)
(2)
June 8th, 2010
80. 80
Strategy: expand our leadership in the European ethanol
and alcohol markets
Keep on improving plant efficiency (ethanol yield, consumption and protein extraction)
Strengthen position as a market leader in Europe thanks to synergies with the Tereos Group
Strengthen relationships with major oil companies
Benefit from European ethanol market growth mainly driven by biofuels blending mandates
Capitalize on our strength in cereals transformation and R&D to seize opportunities in the
development of new generations of bio-fuels
Ethanol
Strengthen the Group’s European activities:
On the high-growth “white” spirit market
• DVO has started operations in 2009
• Selby will start of operations in 2011
Opportunistic development through both greenfield and brownfield projects
Alcohol
June 8th, 2010
81. 81
European Starch Operations
Financials
Conclusion
European Ethanol Operations
Indian Ocean Operations
Appendix
Brazilian Sugar & Ethanol Operations
Executive Summary
Investment Highlights
André Trucy
Pierre-Christophe Duprat
Alexis Duval
Agenda
Pierre-Christophe Duprat
Alexis Duval / Gwenaël Elies
June 8th, 2010
Jacyr Costa
Alexis Duval
André Trucy
82. 82
Introduction to Tereos Internacional Indian Ocean
• Mozambique
• # inhabitants: 22,894,000
• GDP growth: 6.5%
• Language: Portuguese
• Tanzania
• # inhabitants: 43,739,000
• GDP growth: 7.5%
• Language: Swahili,
English
• La Réunion (France)
• # inhabitants: 827,000
• GDP growth: 3.1%
• Language: French, Creole
Tereos Internacional
Indian Ocean Pole
Mozambique
Tanzania
La Réunion
island
Philippe
Labro
Stephane
Isautier
June 8th, 2010
83. 83
Appendix
African Operations
Financials & Strategy
La Réunion
Executive Summary
Investment Highlights
Brazilian Sugar & Ethanol Operations Jacyr Costa
European Starch Operations
Financials
European Ethanol Operations Pierre-Christophe Duprat
Indian Ocean Operations
Conclusion André Trucy
Agenda
Alexis Duval / Gwenaël Elies
June 8th, 2010
Alexis Duval
André Trucy
Pierre-Christophe Duprat
Alexis Duval
84. 84
Sugarcane, a strategic industry for La Réunion
Historical leadership in sugarcane industry and processes
• Since 18th century, economy and social life in La Réunion has been organized
around the culture of sugarcane
Sugarcane Industry is strategic for La Réunion
• Largest economic sector after tourism: c. 10,000 jobs and 80% of exports
• Around 60% of cultivated land on the island (c. 25,000 ha)
• Around 12% of the electricity production (from bagasse)
• Key ingredient for rhum production
Sugarcane Industry is the pillar for sustainable development
• Key role in soil protection against erosion
• Protects landscape quality and touristic attractiveness of the island
June 8th, 2010
85. 204 201
193
209
221
202 207
167
194
207
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
85
Sugarcane in La Réunion : A resilient industry
Source: LMC International, 2010
The sugarcane industry has maintained stable production over the last decade and has substantially improved the
quality of its production assets despite scarcity of land and development of urbanization and tourism
Stability supported by several external factors:
• Improvement of irrigation infrastructure thanks to State and EU support
• Agro-industrial research with State support to implement new varieties of cane generating higher yield
• Controlled urbanization to protect the industry and island heritage
La Réunion sugar productionLa Réunion sugar production
01-10 CAGR
0.2%
Sugar (000 tons)
June 8th, 2010
86. 86
La Réunion: A very attractive legal framework
Sugar market is regulated and benefits from special treatment compared with
other EU countries
• Minimum guaranteed sugar prices above European reference price
(Sugar regime 2006-15)
• No decrease in sugar production quota (drop of 5 Mt in EU)
Strong support by French and EU authorities for La Réunion
• Subsidies to offset geographic situation (e.g. POSEI funds)
• Tax benefits to incentivize investments in the island
• Attractive guaranteed minimum price for electricity production
• Grants to farmers for cogeneration energy derived from sugarcane
June 8th, 2010
87. Tereos Internacional operates two state-of-the-art
facilities in La Réunion
Bois Rouge
Crushing Capacity: 1.0 MM Tons
Sugar Production Capacity:
c. 110,000 tons
Mixed coal-bagasse co-generation
plant operated by Séchilienne-Sidec:
c. 110 MW
Specialty: high value-added sugars
for EU export and domestic markets
Located in the East of the island
Crushing Capacity: 1.0 MM Tons
Sugar Production Capacity:
c. 110,000 tons
Mixed coal-bagasse co-generation
plant operated by Séchilienne-Sidec:
c. 122 MW
Specialty: high value-added sugars
for EU export and domestic markets
Located in the South of the island
and operated by GQF
Le Gol
87
June 8th, 2010
88. 88
Acquisition of Groupe Quartier Français:
A transformational deal
Consolidates position in La Réunion
• Owns two sugarcane crushing plants of La Réunion
• La Réunion benefits from revival of plantation intentions driven by:
• Improvement of plantation revenues partly driven by increase of bagasse
grants (+ €13/tc)
• New sugarcane species (+ 40% of return)
• Increase of irrigation infrastructure
Implementation of synergies (simplification, technical exchanges)
Access to organic and other fair-trade sugar
Access to participation in sugar facilities in Tanzania
June 8th, 2010
89. African Operations
89
Appendix
Financials & Strategy
Executive Summary
Investment Highlights
Financials
Indian Ocean Operations
Conclusion André Trucy
Agenda
Alexis Duval / Gwenaël Elies
La Réunion
Brazilian Sugar & Ethanol Operations
European Starch Operations
European Ethanol Operations
June 8th, 2010
Jacyr Costa
Pierre-Christophe Duprat
Alexis Duval
André Trucy
Pierre-Christophe Duprat
Alexis Duval
90. 90
Steady growth of sugar industry in Tanzania and
Mozambique
Mozambique sugar production has grown c. 8x since 2001 driven mainly by a rapid rise of exports and sustained
domestic demand
Tanzania sugar production grew c. 2.5x since 2001 driven by a rise of local consumption and exports
Mozambique sugar production and consumptionMozambique sugar production and consumption
Tanzania sugar production and consumptionTanzania sugar production and consumption
45 60
170
225 205
265 243 244 263
346
77 98
126 121 136 133 154 165 171 178
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
Sugar Production Sugar Consumption
Sugar (000 tons)
Sugar (000 tons)
128 116
193
224 230
264 258
281 299 309
191 189 183
211
232
274
302 297 307 318
00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
Sugar Production Sugar Consumption
01-10 CAGR
10.3%
5.8%
Source: LMC International, 2010
Source: LMC International, 2010
01-10 CAGR
25.4%
9.7%
June 8th, 2010
91. 91
Favorable framework in both markets
Companhia de Sena (Mozambique Operations) benefits from an Investment
Project Authorization which provides it with certain tax advantages:
• Valid until 2023 and renewable for 5-year periods
• Includes an 80% reduction in income tax obligations and exemptions from taxes
on distributed dividends
Both companies benefit from very strong local demand
Both companies also benefit from ability to export to EU
“Everything But Arms” program allows Mozambique and Tanzania to ship duty-
free products to the EU with an attractive minimum price (c. €335.2/ton)
Tanzania is also allowed to export part of its production to Europe duty- and
quota-free at the price of La Réunion’ sugar price
June 8th, 2010
92. Companhia de Sena (75% owned by Tereos Internacional)Companhia de Sena (75% owned by Tereos Internacional)
92
Sena: The only sugar refiner in Mozambique
Sugarcane plantation currently consists of 15,000 ha
• Source of all of the sugarcane used for sugar production
• Concession agreement from Government for use of
98,000 ha of land for a period of 50 years, renewable for
an additional 50 years
• Includes an additional 15,000 ha of land available
for plant expansion
Companhia de Sena is a leading unique sugarcane mill
• Significant spare capacity, which could be expanded to
1.2 MM tons
• Only sugar mill to produce refined sugar in Mozambique
Sugar produced sold to the domestic market exclusively
through DNA (in which Tereos Internacional has a 25%
interest), a company jointly owned with local sugar
producers
• 58% of production is consumed domestically, mainly in
the form of refined sugar
Crushing Capacity:
0.8 MM Tons (2009/2010)
1.2 MM Tons (2011/2012)
Sugarcane Production:
434,000 Tons (2009/2010)
Sugar Production:
37,700 Tons (2009/2010)
Source: Company Information
June 8th, 2010
93. 93
Significant investments in irrigation systems at Sena
Planting 18-Months – Non IrrigatedPlanting 18-Months – Non Irrigated Irrigation PlanIrrigation Plan
Period Area Affected Area
Affected Area
Yield
Unaffacted
Area Yield
January 520 ha 200 ha 20 t/ ha 60 t/ ha
February 500 ha 180 ha 20 t/ ha 60 t/ ha
March 1,015 ha 350 ha 15 t/ ha 40 t/ ha
Planting 18-Months – IrrigatedPlanting 18-Months – Irrigated
Central Pivot 4,300 ha
Gravity 1,400 ha
Splinkers 600 ha
Linear Pivot 360 ha
Current System (6,600 ha)
2010 Area 1,500 ha
2011 Area 1,400 ha
2012 Area 600 ha
Irrigation Expansion (5,050 ha)
Sena capital expenditures focused on improving yields and
ensuring sugarcane availability through irrigation projects and
enhanced plantation area to “renew” the sugarcane fields
Non irrigated land had issues in early 2009 due to severe drought,
thus significantly decreasing potential yields
Period
Planted
January
Planted
Area
550 ha
Estimated Area
Yield
100 ton/ ha
June 8th, 2010
94. Tanganyika Plantation Company (in partnership with Sucrière de La Réunion)Tanganyika Plantation Company (in partnership with Sucrière de La Réunion)
94
Tanzania: Facilities benefit from expertise of La Réunion
Partnership with Sucrière de La Réunion enables sharing
of know-how and lower production costs
After completion of GQF acquisition, Tereos Internacional
has 30% interest in company with remaining interest held
by Sucrière de La Réunion
Produces brown-type sugar for domestic market
Also owns 14,000 ha agricultural estate planted, of which
7,600 ha in sugarcane
Expandable production capacity: objective to reach 80,000
tons of sugar by 2012
Crushing Capacity:
0.85 MM Tons (2009/2010)
Sugarcane Production:
0.7 MM Tons (2009/2010)
Sugar Production:
68,000 Tons (2009/2010)
80,000 Tons (2011/2012)
Source: Company Information
June 8th, 2010
95. 95
Appendix
Executive Summary
Investment Highlights
Financials
Indian Ocean Operations
Conclusion André Trucy
Agenda
Alexis Duval / Gwenaël Elies
La Réunion
Financials & Strategy
African Operations
Brazilian Sugar & Ethanol Operations
European Starch Operations
European Ethanol Operations
June 8th, 2010
Alexis Duval
Jacyr Costa
Pierre-Christophe Duprat
Alexis Duval
André Trucy
Pierre-Christophe Duprat
96. 132
199
08/09 09/10
16
33
12%
17%
08/09 09/10
EBITDA EBITDA Margin
13
7
08/09 09/10
3
26
08/09 09/10
96
La Reunion key financials summary (1)
Revenue EBITDA and EBITDA margin
Capex (2) EBITDA – Capex (2)
(R$MM) (R$MM)
(1) Excludes Mozambique financials, which are included in Guarani (Brazil segment); excludes Groupe Quartier Français
(2) Committed capex
Source: Company Information (at March 31st)
(R$MM) (R$MM)
Source: Company Information Source: Company Information
June 8th, 2010
97. 97
Indian Ocean Strategy
Further expansion in Africa and Indian Ocean
• Brownfield expansion (e.g. plantation expansion in Africa)
• Seize acquisition opportunities (e.g. GQF acquisition in 2010)
Continue to develop premium and special sugar offering
Seize opportunities arising from the European Union sugar market
• La Réunion: benefit from unused EU production quotas
• Mozambique and Tanzania: use free access to EU markets
• Supply raw sugar to the European market
June 8th, 2010
98. 98
Financials
Conclusion
Appendix
Executive Summary
Investment Highlights
André Trucy
Pierre-Christophe Duprat
Alexis Duval
Agenda
Pierre-Christophe Duprat
Alexis Duval / Gwenaël Elies
European Starch Operations
European Ethanol Operations
Indian Ocean Operations
Brazilian Sugar & Ethanol Operations
June 8th, 2010
Jacyr Costa
Alexis Duval
André Trucy
99. 99
Basis of reporting
Source: Company 2010 Audited accounts
Tereos Internacional was established on February 2nd, 2010, i.e. prior to closing of fiscal year on March 31st, 2010
In March 2010, TEREOS contributed to Tereos Internacional its stakes in Guarani and in Tereos EU, comprising
Syral, BENP, DVO and La Reunion entities
This combination has been accounted for under “pooling-of-interests method”: consequently considered as
retrospectively consolidated since April 1st, 2008
2009 and 2010 financial statements:
• Are audited and consolidated financial statements
• Have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standard Board (IASB)
• Do not include the pro-forma impact of Groupe Quartier Français and Mandu acquisitions
2010 results do not include several major items
• No full year impact of Vertente acquisition (closed on 23 February 2010)
• Two significant acquisitions closed post year-end (Mandu: 31May 2010 - Groupe Quartier Francais: 28 May
2010)
• Several new businesses were not at normative activity level in 2009/10 (BENP, DVO and Selby)
June 8th, 2010
100. 100
5,011
3,652
1,359
Guarani Contributed Assets Tereos Internacional
27
318
345
Guarani Contributed Assets Tereos Internacional
EBITDAEBITDA
Net Debt incl. intercompany loans (1)Net Debt incl. intercompany loans (1)
RevenueRevenue
EBITDA - Capex (2)EBITDA - Capex (2)
(R$ MM) (R$ MM)
(R$ MM) (R$ MM)
802
507
295
Guarani Contributed Assets Tereos Internacional
1,145
2,293
Guarani Contributed Assets Tereos Internacional
n/a
Source: Company Information (at March 31st – Audited accounts 2010 for Tereos Internacional and Guarani except Guarani Audited accounts 2010 for Guarani net debt)
(1) Net Debt including intercompany loans of R$518 MM at Tereos Internacional level and R$396 MM at Guarani level (Referred to as financing
transactions with related parties in 2010 Company consolidated financial statements, note 28.2)
(2) Capex committed, not cashed out, as presented in Tereos Internacional audited consolidated financial statements, note 30.1
Snapshot of contributed assets
Based on 2010 Financials
June 8th, 2010
101. 101
A diversified group by geography and by segment
2010 EBITDA: R$802 MM
Source: Company Information
Sugar and
Ethanol
Brazil
27%
Starch
Products
54%
Ethanol
Europe
15%
Sugar
Indian Ocean
4%
Sugar and
Ethanol
Brazil
37%
Starch
Products
49%
Ethanol
Europe
10%
Sugar
Indian Ocean
4%
(1)
(1)
(1) Includes Mozambique Plant
2010 Revenue: R$ 5,011 MM
June 8th, 2010
102. 102
A healthy financial structure
2010 Leverage and Net debt including intercompany loans (1)(2)2010 Leverage and Net debt including intercompany loans (1)(2)
3.9
2.9
Guarani Tereos Internacional
2.9x
3.9x
Source: Company Information (at March 31st – Audited accounts 2010 for Tereos Internacional and Audited accounts 2010 for Guarani)
(1) Leverage based on Guarani and Tereos Internacional EBITDA as disclosed in Tereos Internacional 2010 audited accounts, note 30 and in MD&As
(2) Referred to as financing transactions with related parties in 2010 Company consolidated financial statements, note 28.2 (net financial debt at of March 31st,
2010 of resp. R$749 MM at Guarani as per Guarani 2009-10 financial results and R$1,775 MM at Tereos Internacional)
(R$ MM)Leverage (EBITDA x) R$1,145 MM R$2,293 MM
(1.0x)
June 8th, 2010
103. 5,011
5,3425,529
2009 2009
At Constant FX
2010
103
Tereos Internacional: Strong operational results
Source: Company Information
Revenue evolutionRevenue evolution
(R$ MM)
Gross ProfitGross Profit
(R$ MM)
9869731,007
2009 2009
At Constant FX
2010
18.2% 19.7%% Margin
EBITDAEBITDA
(R$ MM)
802
606626
2009 2009
At Current FX
2010
11.3% 16.0%
% Margin
Net IncomeNet Income
(R$ MM)
(2)
431
2009 2010
(9.4%)
(2.1%)
+28.1%
n.m 8.6%
% Margin
Financial FX loss:
R$(174) MM
Financial FX gain:
+R$125 MM
June 8th, 2010
104. Change per FX / revenue / cost base / Other at Group level – 2009-2010Change per FX / revenue / cost base / Other at Group level – 2009-2010
104
EBITDA evolution: reduction in revenue compensated by
a reduction in costs
606
458
68
39
802
(331)
(19)
626
841
2009 EBITDA FX 2009 EBITDA
at constant FX
Revenue Cost base Other 2010 EBITDA Cardoso
impact
2010 EBITDA
Excl. Cardoso
(R$ MM)
Source: Company Information
(4)
Margin 16.8%11.3% 11.3% 16.0%
(1) For convenience purposes, sum of 2009 EBITDA and FX impact disclosed in MD&As
(2) Includes costs of sales, distribution costs and G&A at constant FX as per MD&As
(3) Includes Restructuring and Other operating income impact at EBITDA level (i.e. excluding R$64 MM negative goodwill included in Other operating
income related to the acquisition of minority interest in Guarani in 2009 (2010 accounts, note 3.2)
(4) Restated for impact related to Cardoso (EBITDA: $(39) MM) as disclosed in MD&As
(1) (3)(2)
cost base impact >> revenue impact
June 8th, 2010
105. 105
Sound cash flow generation
(R$ MM)
(1)
(1) Incl. R$456 MM capex cashed out (vs. R$457 MM
committed)
(2) Sum of financing interest paid and financing interest
received
2010 cash generation2010 cash generation
Source: Company information, 2010 Tereos International Group consolidated statement of cash flows (FYE March 31st)
(2)
(3) Sum of capital increase, dividends paid to equity
holders of the parent and dividend paid to non controlling interests
(3)
866
(497)
(246)
73 196
Cash from Activities Capex Net interest Capital increase / dividends Change in net debt pre FX
June 8th, 2010
106. Net financial debt and leverage (1) walkthrough from 2009 to 2010Net financial debt and leverage (1) walkthrough from 2009 to 2010
106
Deleveraging on the back of cash generation and
EBITDA increase
(1) Leverage defined as: 2009 Net Debt / 2009 EBITDA; 2009 net debt at constant FX / 2009 EBITDA at constant FX and 2010 net debt / 2010 EBITDA
(2) Mainly due to the integration of Vertente and Selby (R$42 MM)
(3) Referred to as financing transactions with related parties in 2010 Company consolidated financial statements, note 28.2
Source: Company information, 2010 Tereos International Group consolidated statement of cash flows, balance sheet and notes 24.4 / 28.2, MD&As
Net financial debt including intercompany loans (3)
(R$ MM) Leverage (EBITDA x)
2,352
53(434)
1,918
(196)
1,775
3,001
2009 FX 2009 at constant FX Change in net debt Perimeter effect 2010
2,293
3.8x 2.2x
(2)
4.8x 2.9x3.2x
Net financial debt excluding intercompany loans (3)
June 8th, 2010
107. 107
Tereos Internacional refinancing: a stronger financial
structure
The refinancing will take place once Tereos Internacional is listed
• All intercompany loans outside of Tereos Internacional will be repaid
• Most of Tereos EU’s subsidiaries’ long term indebtedness will be refinanced into a new single
facility
• No significant impact in terms of currency or fixed/variable interest breakdown
• Post refinancing the remaining short term indebtedness will be unchanged on Guarani and, as far
as Teros EU is concerned, will mostly comprise Syral’s factoring and Syral’s overdraft
Tereos EU: new syndicated facility of €450m at Tereos EU guaranteed by Tereos Internacional
• TA1 secured term loan facility of €275 MM and TA2 secured revolving facility of €175 MM
• 5-year maturity from the signing date
12.5
35.0 35.0 35.0 35.0
15.0
20.0 20.0
35.0
Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Maturity
Repayment TA1 Cancellation TA2
Repayment Schedule TA1 and Cancellation ScheduleTA2
122.5
85.0
Source: Company Information
June 8th, 2010
108. 108
Financial covenants at Tereos EU level only
Debt covenants
• Leverage ratio (consolidated net debt to consolidated EBITDA): decreasing from 2.9x as of
March 2011 to 2.25x as of March 2014 and thereafter
• Interest coverage ratio (consolidated EBITDA to consolidated net interests): above 4x
• A debt service coverage ratio for Tereos EU group of 1.1x only applies if Tereos EU distributes
an amount of dividends exceeding 50% of its annual consolidated cumulated net earnings)
2.25x
2.50x
2.75x
2.90x
Mar-11 Mar-12 Mar-13 Mar-14 and thereafter
Leverage ratio covenantLeverage ratio covenant Interest coverage ratio covenantInterest coverage ratio covenant
Source: Company Information Source: Company Information
4.00x4.00x4.00x4.00x
Mar-11 Mar-12 Mar-13 Mar-14 and thereafter
June 8th, 2010
109. 2010 operating income to net income2010 operating income to net income
109
Understanding the non-operating elements: FX and Tax
(R$ MM)
2009 operating income to net income2009 operating income to net income
(R$ MM)
Source: Company Information
125 1
129
(223)
431
399
Operating income Net financial expenses excl.
FX impact
FX impact on net financial
expenses
Associates Tax Net income
As of March 31st, 2010:
- Tax losses unused recognized: R$403 MM
- Tax losses unused not recognized: R$47 MM
(1) Referred to as “foreign exchange gains and losses” in Tereos Internacional
2010 audited consolidated accounts
(1)
(1)
5
(2)
132
(174)
(284)
319
Operating income Net financial expenses excl.
FX impact
FX impact on net financial
expenses
Associates Tax Net income
June 8th, 2010
110. 110
Low capital expenditure due to modern asset base
Plantations: c. R$119 MM, related to Brazil
Main industrial investments:
• Maintenance: R$105 MM (23% of total)
• Capacity increase: R$142 MM (31%)
• New sites development: R$80 MM (18%)
Brazil: mostly:
• Plantations: R$119 MM
• Maintenance: R$44 MM
• Various improvements: R$76 MM
• Mozambique: R$17 MM
Europe: mostly:
• Finalization of major capacity investments
- DVO: R$45 MM in 2010 / BENP Lillebonne:
R$54 MM in 2009
• Maintenance: R$61 MM
• Various improvements: R$60 MM
Comments on 2010 capexComments on 2010 capex
185
122
60
7
291
268
542
53
13
457
2009 2010
Starch BrazilIndian OceanAlcohol & Ethanol Europe
Source: Company Information
Breakdown of capital expenditure (1) by segmentBreakdown of capital expenditure (1) by segment
7%
24%
5%
10%
10%
% 2009 revenue
by segment
9%
8%
20%
5%
4%
% 2010 revenue
by segment
(2)
(1) Committed capex (as per Tereos Internacional audited consolidated 2010 financial statements, note 30.1)
(2) Includes Mozambique Plant
June 8th, 2010
111. 111
Key financial strengths of Tereos Internacional
1 A diversified and resilient business profile
2 A steady cash flow generation
3 A stronger balance sheet and sound financial structure
4 A recent asset base, significant expansion capex over the last few years
5 Ability to fund future expansion and dividend
June 8th, 2010