1. Tereos Internacional
Second Quarter 2013/14 Results
São Paulo – November 14th, 2013

2. Q2 2013/14 Highlights
Operational


Guarani:


Sharp increase in cogeneration sales (+48.9% on a YTD basis)


Strong yields thanks to past investments and favorable climate (+14.4% on a YTD basis), on
stable TRS
Guarani 2016 efficiency improvement plan amplified
Syral Europe:


Performance 2015 program launched to improve efficiency and enhance financial performance
Syral Brazil:

Corn starch sales from Palmital facility progressing, and glucose commercial production to
begin at the end of Q3 13/14.
Strategic


Syral China: Formal approvals from Chinese authorities for Tieling joint-venture granted and
acquisition of a 49% stake completed on 8th November, 2013
Finance



2
Guarani: R$225.1 million capital injection from Petrobras to reach 39.6% stake in Guarani
completed in October
Guarani: Refinancing of USD 190 million of Guarani export notes. Duration extended for 5 years,
with grace period of 3 years, at lower rates

3. Market Highlights
600
US$/MT
US$ Cents/lb.
21
20
550
19
500
18
17
450
16
400
Jan-13
Apr-13
LIFFE#5
Jul-13
Oct-13
15
NY#11
€/MT
270
230
210
 The weakening of BRL against the USD supported Brazilian
producers’ remuneration
Starch:
 Expectation of a bumper corn crop in the US on the back of strong
yields. Prices stood on average at 188 €/t in the quarter and wheat
corn spread continues at historical highs
190
170
150
Jan-13
Apr-13
Corn MATIF
Jul-13
Oct-13
Wheat MATIF
R$/m³
€/m³
Ethanol:
700
1400
650
1200
600
1000
550
800
Jan-13
Apr-13
Brazil ESALQ
3
 Raw sugar prices reached 17.5 cents/lb at the end of Q2 13/14
(+4.7% since 1st of July) due to strong demand, weather
concerns in C/S of Brazil and reversion of funds’ position from
net short to net long
 Wheat prices evolved in a range of 182 to 199 €/t in the quarter, for
November 2013 and March 2014 future contracts
250
1600
Sugar:
Source: Bloomberg
Jul-13
Oct-13
Europe Rotterdam
500
 During the quarter, ethanol prices in Brazil have been falling
steadily on the back of higher production level vs. last year
(-2.9% and -4.0% for hydrous and anhydrous, respectively)
 FOB Rotterdam prices have dropped significantly (-7.7% since
1st July) to c.590 €/m3 at the end of the quarter, on the back of a
rebound in supply from US encouraged by declining corn prices

4. Q2 2013/14 – Revenues
Better Volumes for Sugarcane Division and Price and Mix for Starch and Sweeteners
Net Revenues (R$ MM)
+17.8%
1,873
525
2,207
591
1,112
283
246
Q2
2012/13
Q2
2013/14
2,207
1,873
Ethanol
Europe
Q2
2012/13
Revenue growth supported by:

+15
(19)
Africa/Indian
Ocean
Starch
Europe
+253
+87
258
215
851
Brazil
Volume
Price & Mix Currency
Others
Q2
2013/14
At Constant Currency: +3.9%

Improved overall sugar volumes and energy sales in Brazil

Higher volumes, prices and positive mix effect in the starch and sweeteners segment

Positive Forex impact on the back of weakening Real vs. Euro (-13.7% on average Y-o-Y)
But partially offset by:



4
Lower world sugar prices impacting Brazilian sales and lower ethanol prices in Europe
Lower ethanol volumes (plant conversion, Lillebonne maintenance stoppage, lower beet ethanol
trading activity)

5. Q2 2013/14 - Adjusted EBITDA
Improvement on Better Efficiency Levels at Sugarcane Operations
Adjusted EBITDA (R$ MM)
289
151
+18.4%
342
Brazil
189
69
81
51
21
-3
Q2
2012/13
49
27
-3
Q2
2013/14
+38
Starch
Europe
+6
(1)
(2)
Africa/Indian
Ocean
342
289
Ethanol
Europe
Holding
Q2
2012/13
Brazil
Margin 15.4%

+11
Africa/Indian
Ocean
Starch
Europe
Ethanol
Europe
Holding
Margin 15.5%
Adjusted EBITDA improved year-on-year as a consequence of:

Cost dilution in Brazil due to higher volumes, together with positive effect of rising energy
volumes & prices

Higher gross profit in the quarter in Africa/Indian Ocean

Improved margins for the Alcohol/Ethanol Europe segment, on lower cereal input price

5
Q2
2013/14
However, starch & sweeteners margins remain under pressure in the current environment,
despite beginning of benefits from lower cereal input costs

6. Sugarcane Brazil – Production & Sales
Harvesting at Good Pace to Reach c. 20 Million Tonnes(1) of Crushing
Sugarcane Crushing (MM t)
Sugar Sales (‘000 t)
Ethanol Sales (‘000 m³)
Energy Sales (‘000 MWh)
+3.9% YoY
+21.2% YoY
-3.3% YoY
+44.0 YoY
84

89
179
Own Sales
255
Q2
13/14
Q2
12/13
92
Q2
12/13
Q2
13/14
470
Q2
13/14
388
Q2
12/13
7,7
Q2
13/14
7,4
Q2
12/13
57
Trading
Crushing



Higher crushing in H1: 13.4 million tonnes (+15.1% vs. H1 12/13)
Strong agricultural yields (expected improvement in FY yield to c.90 t/ha vs. 84 t/ha in 2012/13) and
stable TRS levels at 134.6 kg/ton
Improvement in production


Mix: 65% sugar, 35% ethanol

Sugar:


Overall production (expressed in TRS) up 17.0% to 1.8 Mt
Ethanol: 377 Km³
+17.8% YoY
+15.5% YoY
Progress on cogeneration

6
1.1 Mt
YTD energy sales (including trading) up 48.9% to 486 GWh, on better prices (+6.7% to R$144/MWh)
(1) Considered full consolidation basis and excluding the JV contribution of Vertente at c. 18.5 million tonnes

7. Sugarcane Brazil – Financials
Higher Sugar Volumes Lowering Unitary Costs Led to an Improvement in EBITDA
Net Revenues (R$ MM)
(30)
591
525
Sugar
Q2
2012/13

Price &
Mix
Volume
Volume
591
525
+13%
121
119
+2%
20.5%
22.7%
37
51
6.3%
9.7%
189
151
31.9%
28.7%
EBIT
EBIT Margin
Ethanol
Price &
Mix
2012/13
Gross Profit
(3)
2013/14
Revenues
+16
Q2
Gross Margin
+2
Q2
In R$ Million
+82
Key Figures
Adjusted EBITDA
Others
Q2
2013/14
Sugar: 70% of total net revenues
Adjusted EBITDA Margin

Change
-27%
+25%
Adjusted EBITDA: R$189 million




Volumes increased +21.2% to 470 Kt
Average selling price: -6.5% Y-o-Y at 934
R$/tonne
Higher profit from increased sugar and
energy volumes

Adjusted EBITDA Margin1 for Q2 13/14
including tilling as depreciation: 37.9%
Ethanol: 17% of total net revenues



7
Volume sold down -3.3% to 89 Km3
Average price up 2.1% Y-o-Y at 1,098 R$/m3
Cogeneration (ex-trading): R$38.3 million vs.
R$8.7 million in Q2 12/13
Note: Figures for Brazil now exclude JVs
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment,
Adjusted EBITDA for Q2 13/14 would have reached
R$224 million.

8. Sugarcane Africa/Indian Ocean – Production and Financials
Steady Performance in the quarter
1.249
76
2012/13
258
215
+20%
66
39
+70%
Gross Margin
1.267
2013/14
Revenues
-0.4% YoY
-1.4% YoY
Q2
In R$ Million
Sugar sales (‘000 t)
Q2
Gross Profit
Sugarcane Crushing (’000 t)
Key Figures
25.6%
18.1%
30
24
11.8%
11.1%
81
69
31.3%
32.4%
EBIT
75
EBIT Margin
Revenue Breakdown by Product
Q2
13/14
Q2
12/13
Q2
13/14
Q2
12/13
Adjusted EBITDA
Adjusted EBITDA Margin

Change
+28%
+17%
Sugarcane crushing


Trading and
others
25%
Sugar Indian
Ocean
56%
Indian Ocean: 960 Kt (+1.7%), although recent
drought should lower full year crushing to c.1.7
Mt
Africa: lower crushing (-10.2%) on deteriorated
yields, but production volume only slightly down
this quarter

Revenues: +20% Y-o-Y
 Higher volumes, mostly trading in the Indian
Ocean, and higher prices in Mozambique, and
positive currency effect

Adjusted EBITDA: +17% Y-o-Y
 Positive contribution from both segments
Sugar Africa
19%
8

9. Cereal Segment - Production and Sales
Growth in volumes in starch & sweeteners, counterbalanced by lower ethanol volumes
-17.5% YoY
-0.3% YoY
818
Q2
13/14
Q2
12/13
838
444
455
139
115
310
309
Q2
13/14
+2.5% YoY
Q2
12/13
-2.4% YoY
Q2
13/14
Co-products Sales
(‘000 t)
Q2
12/13
Alcohol & Ethanol
Sales (‘000 m3)
Q2
13/14
Starch & Sweeteners
Sales (‘000 t)
Q2
12/13
Cereal Grinding
(‘000 t)
 Grinding in Q2 13/14: -2.4% drop mostly due to the impact of a maintenance in Nesle and Lillebonne
plants
 Starch & Sweeteners sales: +2.5%
 Alcohol & Ethanol sales: -17.5%
9
Growth in most of the product categories, but reduced volumes
of regular sweeteners
Factory diversification (impact of gluten and dextrose
complementary lines) and maintenance carried out
in Q2 reduced volumes at Lillebonne, coupled with lower
ethanol trading sales from Tereos

10. Starch & Sweeteners – Financials
Higher Revenues on Improved Volumes and Prices, and a Positive Currency Effect
Net Revenues (R$ MM)
Key Figures
+65
In R$ Million
+7
+26
Q2
2013/14
2012/13
1,112
851
+31%
Gross Profit
+164
Q2
174
141
+24%
Gross Margin
15.7%
16.5%
6
22
0.5%
2.5%
49
51
4.4%
6.0%
Revenues
1,112
851
EBIT
EBIT Margin
Adjusted EBITDA
Q2
2012/13

Volume
Price & Mix Currency
Others
Q2
2013/14
Adjusted EBITDA Margin
Change
-74%
-4%
Revenues: R$1,112 million, up 31%


Start of positive perimeter effect of dextrose sales in Europe, and ramp-up of Syral Halotek sales in
Brazil


Overall better volumes (+7.6% in Europe) particularly for gluten, specialties and functional
sweeteners. However, revenue growth hampered by softness in certain segments (notably
sweeteners) due to economic conditions. Higher prices y-o-y.
Positive Forex translation effect on the back of sharp drop of Real vs. Euro (-13.7% Y-o-Y)
Adjusted EBITDA: R$49 million, down 4% Y-o-Y

10
Profitability remained under pressure in the quarter, despite beginning of benefits from lower cereal
input prices, as economic condition hampered our ability to rebuild margins and fully benefit from
recent investments (Saragosse, Lillebonne, Marckolsheim)

11. Alcohol & Ethanol Europe – Financials
Adjusted EBITDA margin Improvement on Lower Wheat Prices
Net Revenues (R$ MM)
(72)
283
2013/14
2012/13
246
283
-13%
Gross Profit
28
29
-3%
Gross Margin
(23)
Q2
Revenues
+3
Q2
In R$ Million
+55
Key Figures
11.3%
10.1%
17
11
7.0%
3.7%
27
21
10.9%
7.3%
EBIT
246
EBIT Margin
Adjusted EBITDA
Q2
2012/13
Volume
Price & Mix
Currency
Others
Q2
2013/14
Revenue Breakdown by Product
Adjusted EBITDA Margin

Change
64%
29%
Revenues: R$246 million, down 13%

11
Ethanol own
sales 56%
Note: Figures for Alcohol & Ethanol segment now exclude JVs

Lower trading activity for Tereos Group

Ethanol
traded 36%
Own volumes affected by factory diversification
and maintenance carried out in Q2

Co-products
and other
8%
Drop in FOB Rotterdam prices (-14.7% on average
Y-o-Y)
Adjusted EBITDA: R$27 million, up both Y-o-Y

Benefit from lower input prices, in particular as
major portion of wheat purchased at conventional
prices this quarter

12. Cash Flow Reconciliation
Cash Flow
In R$ Million
Adjusted EBITDA
Working capital variance
H1 13/14

Working Capital
Mostly due to higher seasonal inventories and
currency impact on inventories

CAPEX (-25.3% Y-o-Y)
551
(577)
Others
(72)
Operating Cash Flow
(98)
Financial interests
(94)
Dividends paid and received
(41)
Capex
(431)
Others
Brazil: 54% of total (+9% Y-o-Y):
 Capacity & cogen expansion program
 78% of the expansion-program completed
22
Free Cash Flow
(642)
Forex impact
Cereals: 34% of total (-52% Y-o-Y):
 Mostly related to starch project in Brazil
(408)
Others
Net Debt Variation
12
1
(1,051)

Currency Effect on Debt
Devaluation of the Real against Euro and USD,
(-13.5% Y-o-Y as at 30th September)

13. Debt
Increase of Net Debt Mostly on Higher Seasonal Working Capital and Currency
Debt
In R$ Million
Pro Forma
March 31st,
Sep 30th,2013
2013 (Restated)
∆
Current
2,174
1,829
345
Non-current
2,574
2,399
175
(23)
(26)
4,725
4,202
In €
1,827
1,596
231
In USD
1,657
1,688
(31)
In R$
1,213
882
331
51
62
(11)
Cash and Cash Equivalent
(702)1
(893)
191
Total Net Debt
4,023
3,309
714
125
12
113
4,148
3,321
827
Amortized cost
Total Gross Debt
Other currencies
Related Parties Net Debt
Total Net Debt + Related Parties
3
523


Guarani: R$225.1 million capital injection from Petrobras to reach 39.6% stake in Guarani completed
in October

13
Net Debt/Adjusted EBITDA: 4.5x vs. 4.4x on March 31st, 2013
Guarani: Refinancing of USD 190 million of Guarani export notes. Duration extended for 5 years, with
grace period of 2 years, at lower rates
(1) Cash and cash equivalent of September 30th 2013 restated to include capital increase of R$225 million from PBio into Guarani.

14. Outlook
 Sugarcane
 Brazil

Guarani confirms target of c.18.5 million tonnes of sugarcane crushing (excluding the JV
contribution of Vertente and equivalent to c.20 million tonnes on a full consolidation basis)

Higher production to continue diluting fixed costs, despite challenging sugar prices.

Guarani 2016 program to enhance efficiency and profitability has been stepped up
 Africa/Indian Ocean

Exceptionally dry weather in the Reunion Island and lower yields in Mozambique expected to
lead to decrease in volumes of sugarcane crushed in the segment (total combined of c.2.1 Mt)
 Cereals
 Europe

Cereal prices expected to remain below last year’s peak levels in the 3rd quarter.

Focus remains on performance improvement plan.
 Brazil

Production of corn starch progressively ramping up. Sales of glucose expected to start towards
the end of Q3 13/14
 China


14
Engineering and equipment purchases mostly done at Dongguan, while civil works is underway
Following the Tieling joint-venture formation, product diversification and productivity
improvement plan to be completed and progressively implemented over the next 18 months

15. IR Contact
Marcus Thieme
Investor Relations Officer
Felipe Mendes
Investor Relations Manager
Phone: +55 (11) 3544 4900
Email: ir@tereosinternacional.com
www.tereosinternacional.com