4. 4
Q1 2012/13 – Key Takeaways
R$370 million Capital Increase: 100% subscribed
New free float: conclusion of the shareholder restructuring of the controlling shareholder
of Tereos Internacional with cooperatives of cereal growers joining directly the Company
• The direct participation of Tereos in Tereos Internacional is now of 69.6% and free
float was thus increased from 10.7% to 29.3% (after capital increase)
Share capital increase: R$370 million, subscribed at 100%
• Proceeds will finance cereal expansion and the diversification of production in the
European cereal activities
Historical
Shareholders
TEREOS
29.3%
1.1%
New float
69.6%
0.4%
11.0%
C.A. d’Hochefelden
Theal
Noralliance Dév.
Axereal
Noriap
Agrial
Uneal
Agralys
Epis-Centre Acolyance
Thémis Agro-Industrie
0.4%
1.0%
0.3%
0.8%
6.5% 1.2%2.3%
1.0%
3.2%
1.2%
Other Minority
Shareholders
5. Stable revenues: R$1.7 billion :
-1.9% y-o-y, at constant currency
+4.6% y-o-y, as reported
• Favorable pricing in practically all our products, except for Brazilian ethanol,
partially compensating the reduction in volumes
Adjusted EBITDA: R$156 million : -26.7% y-o-
y, at constant currency
-24.3% y-o-y, as reported
• Delayed production in Brazil due to unusual weather conditions impacting
volumes in the quarter
5
Q1 2012/13 – Financial Highlights
6. Sugar:
Unusual rainfalls in Brazil
Rebound in world prices in Q1 12/13
Brazilian domestic prices remained stable, less impacted by
world prices swings
Starch:
A severe drought in the US and in Europe is driving corn and
wheat prices up
EU demand for starch and derivatives is flat in food, declines
in the industrial sector (corrugated paper)
Ethanol:
Brazil has faced another quarter of lackluster prices in the
local market
EU: a growing market, but facing headwinds from lower
gasoline consumption
US ethanol prices rallied at the end of June as a result
of concerns over drought in the Midwest
Q1 2012/13 – Market Fundamentals
6 Source: Bloomberg
400
470
540
610
680
750
Apr-11 Aug-11 Dec-11 Apr-12
NY#11 LIFFE #5
US$/MT
400
500
600
700
800
700
1000
1300
1600
1900
Apr-11 Aug-11 Dec-11 Apr-12
Brazil ESALQ Europe Rotterdam
R$/m³ €/m³
170
190
210
230
250
270
Apr-11 Aug-11 Dec-11 Apr-12
Corn Matif Wheat Matif
€/MT
8. 1604 1678
(94)
+7
+103
+59
Q1 2011/12 Brazil Indian
Ocean
Starch
Europe
Ethanol
Europe
Q1 2012/13
1604 1678
+106
(51)
+32
(13)
Q1
2011/12
Currency Volume Price & Mix Others Q1
2012/13
Q1 2012/13 – Revenues
Stable Turnover Despite Delay in Brazilian Crushing Season
8
+4.6%
Net Revenues (R$ MM)
Sugarcane Revenues: R$560 million (33.4% of total)
Brazil: R$408 million
-19%, as reported production delayed onto 2nd, 3rd and 4th quarters
Indian Ocean: R$152 million
+5%, as reported one shipment from Reunion Island postponed to
2nd quarter, Mozambique performing well
Cereal Revenues: R$1,118 million (66.6% of total)
Starch & Sweeteners: R$797 million +15%, as reported price & mix:+4%, volume: +1%
Alcohol / Ethanol Europe: R$322 million +23%, as reported stable prices, increase in trading volumes
+4.6%
9. 206
(71)
+9
+23
(12)
+1
156
Q1 2011/12 Brazil Indian
Ocean
Starch
Europe
Ethanol
Europe
Holding Q1 2012/13
Q1 2012/13 - Adjusted EBITDA
Delay in Brazilian crop and increase in cereal costs (Alcohol & Ethanol Europe)
9
Sugarcane Adjusted EBITDA: R$57 million (36.4% of total)
• Brazil: delayed production due to heavy rainfalls.
• Indian Ocean: higher prices coupled with better volumes in Mozambique
Cereal Adjusted EBITDA: R$102 million (65.0% of total)
• Starch Europe: increase in Adjusted EBITDA margin (9.3% in Q1 2012/13 vs 7.4% in Q1 2011/12)
• Ethanol Europe: increase in cereal costs partially offset by higher trading volumes
Adjustments
• Biological assets (-R$7 MM), financial instruments (+R$1 MM)
Margin 9.3%
Adjusted EBITDA (R$ MM)
Margin 12.9%
12. Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)
12
Sugarcane crushing: 4.7 million tons in Q1 2012/13 (60% from sugarcane suppliers)
Average yield to date of 80 tons of cane per hectare (3.8% above budget)
Production: Sugar: 317,000 tons 60% of mix
Ethanol: 132,100 m³ 40% of mix
Cogeneration: volume sold increased to 94 GWh (+11.3%)
-17.7% YoY -18.2% YoY +11.3% YoY
Sugarcane Brazil – Production & Sales
Lower crushing volumes due to weather-related issues
5.8
7.8
2.6
4.7
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
-20.1% YoY
305
374 375
249 251
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
140
99 91
151
115
40
40
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
84
106
90 86 94
Q111/12
Q211/12
Q311/12
Q411/12
Q112/13
Extraordinary rainfall led to a delay in sugarcane crushing into the following
quarters but allow an increase in crushing forecast for 2012/13 season from
17.5 million to 18.2 million.
The season is expected to end in the first week of December
13. 502
408
+18
(52)
(31)
(36)
+7
Q1
2011/12
Price &
Mix
Volume Price &
Mix
Volume Others * Q1
2012/13
Sugarcane Brazil – Q1 Financials
Revenues benefitting from high prices and a weak Real, ethanol prices return to normal levels
* includes Cogeneration, Agricultural Products and Hedging
Key Figures
In R$ Million
Q1
2012/13
Q1
2011/12
Change
Revenues 408 502 -19%
Gross Profit -14 89 -116%
Gross Margin -3.5% 17.8%
EBITDA 32 136 -77%
EBITDA Margin 7.7% 27.0%
Adjusted EBITDA 41 112 -64%
Adjusted EBITDA Margin 10.0% 22.3%
CAPEX 154 139 11%
Adjusted EBITDA: R$41 million
• Fair value of biological assets: -R$10.2 million
• Financial instruments: R$1.0 million
• Adjusted EBITDA Margin1 including tilling as
depreciation: 17.1%
CAPEX: R$154 million: including R$47 million
of plantation. Thanks to the rains, 53% of the
winter planting program has been completed
Sugar: 58.8% of total net revenues
• Volumes decreased -17.7% to 250,500 tons
• Sugar prices were at 956.4 R$/ton (Y-o-Y: +11.4%)
Ethanol: 31.9% of total net revenues
• Volume sold decreased 18.2% to 115,000 m3
• Prices were at 1,136.2 R$/m3 (Y-o-Y: -19.0%)
Cogeneration: energy revenues amounted
R$14.8 million (Y-o-Y: +30.0%)
13
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as investment &
ethanol resales excluded, Adjusted EBITDA would
have reached R$69.5 million.
Net Revenues (R$ MM)
Sugar Ethanol
14. 65
315
275
43
116
Q111/12
Q211/12
Q311/12
Q411/12
Q112/13
Sugarcane Indian Ocean – Production and Q1 Financials
Early start in Mozambique, stable results in Réunion Island
14
La Réunion
Sugarcane Crushing (’000 t)
Mozambique
Sugarcane Crushing (‘000 t)
+78.8% YoY
Reunion Island
No sugarcane crushing, season starting in July
• Sugar sales: 58,800 tons
Revenues
• Q1 2012/13: R$140.9 million vs R$141.6 million, as reported
Due to a delay of one shipment to Europe
Adjusted EBITDA
• Q1 2012/13: R$25.9 million vs R$18.8 million, as reported
• Adjusted EBITDA margin 18.4%, 510 bps increase thanks to
higher selling prices
CAPEX: R$29 MM in Q1 2012/13 allocated for maintenance
costs and regular replacement of industrial equipment
Mozambique
Sugarcane crushing: 116,000 tons &
Sugar production: 9,000 tons
• Earlier start as larger crop expected (850,000 tons, +21.4%)
• Better industrial recovery
Revenues
• Q1 2012/13: R$11.2 million (2.8x Y-o-Y)
Adjusted EBITDA
• Traditionally negative due to seasonality
• R$2.1 million improvement Y-o-Y, as reported
CAPEX: R$7.7 MM in Q1 2012/13 allocated for ongoing
irrigation expansion, planting program and factory
improvements
Key Figures
In R$ Million
Q1
2012/13
Q1
2011/12
Change
Revenues 152 146 5%
Gross Profit 35 20 72%
Gross Margin 23.1% 14.0%
EBITDA 19 8 140%
EBITDA Margin 12.4% 5.4%
Adjusted EBITDA 16 7 133%
Adjusted EBITDA Margin 10.6% 4.7%
CAPEX 37 32 15%
989 898
0
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
16. New Segmentation for The Cereal Division
To better reflect the evolution of the segment
16
“Starch &
Sweeteners”
“Alcohol & Ethanol”
Marckolsheim
Nesle
Aalst
Saragosse
Saluzzo
Selby
Haussimont
BENP
DVO
PreviousSyral
Previous
BENP/DVO
New
Segmentation:
17. 221 221 204 210 217
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q112/13
Starch & Sweeteners - Production and Sales
Slight increase in volumes sold, including perimeter effect
Cereal grinding: 723,000 tons -2.2% vs. Q1 2011/12 (excluding Haussimont/Syral Halotek)
Sales volumes
• Starch & Sweeteners: slight increase (+2.3% Y-o-Y) due to Haussimont’s integration
(8,600 tons sold in the quarter, equivalent to 2% of the volumes sold)
• Co-products: lower gluten sales (-1.8% Y-o-Y), in line with the reduction in
cereal grinding
17
Cereal Grinding
(‘000 t)
Starch & Sweeteners
Sales (‘000 t)
Co-products Sales
(‘000 t)
-2.2% YoY +2.3% YoY -1.8% YoY
739 720
678
710 723
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q112/13
440
424
392
433
450
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
18. Starch & Sweeteners – Q1 Financials
Benefits from perimeter increase and price adjustments
Key Figures
In R$ Million
Q1
2012/13
Q1
2011/12
Change
Revenues 797 694 15%
Gross Profit 177 126 41%
Gross Margin 22,2% 18,1%
EBITDA 74 36 106%
EBITDA Margin 9.3% 5.2%
Adjusted EBITDA 74 51 44%
Adjusted EBITDA Margin 9.3% 7.4%
CAPEX 77 32 138%
18
Net Revenues (R$ MM)
+14.8%
Revenues: +14.8%
• Due to higher prices (+6% in local currency) and integration of Haussimont & Syral Halotek in the perimeter (R$12.7
million)
Adjusted EBITDA: R$74 million, up R$23 million
• Back to normal EBITDA margin after a first quarter 2011/12 with expensive raw material and compressed margins
• Financial instruments: R$0.3 million
CAPEX: R$77 million allocated for starch project in Brazil and diversifications in Europe
694
797
+66 +9
+27 +1
Q1
2011/12
Currency Volume Price &
Mix
Others Q1
2012/13
19. 115 110 109
134
110
40
26
62
61
70
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
Trading Own Sales
156
136
171
195
180
Alcohol & Ethanol - Production and Sales
Slight increase in volumes sold helped by ethanol trading
Cereal grinding: 209,000 tons -4.3% vs. Q1 2011/12
• 7 stoppage days at BENP Lillebonne plant in order to connect the new gluten production line and for
maintenance (-20,000 tons of cereals grinded)
• Positive impact of Selby start-up (4% of the quarter’s volume)
Sales volumes
• Alcohol & Ethanol: 15.4% increase, sales from beet ethanol (Tereos) compensating for the drop in
own ethanol sales
• Co-products: lower co-product sales, linked to lower production in Lillebonne (7 days stoppage)
19
Cereal Grinding
(‘000 t)
Ethanol & Alcohol Sales
(‘000 m3)
Co-products Sales
(‘000 t)
-4.6% YoY +15.4% YoY -11.8% YoY
219 218 220 214 209
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
68
59
66
62 60
Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
20. Ethanol own
sales 57%
Ethanol
traded 33%
Co-products
and other
10%
262
322
+25
+34
0
+1
Q1
2011/12
Currency Volume Price & Mix Others Q1
2012/13
Alcohol / Ethanol Europe – Q1 Financials
Alcohol & Ethanol sales: 110,000 m3 + 70,000 m3
from Tereos trading
Gross profit: R$38 million and 11.8% margin
CAPEX: R$77 MM mainly allocated for the gluten
project at BENP Lillebonne
Adusted EBITDA margin excluding trading would
be 12.7%
20
Net Revenues (R$ MM)
+22.5%
Revenue Breakdown by Product
Key Figures
In R$ Million
Q1
2012/13
Q1
2011/12
Change
Revenues 322 263 +23%
Gross Profit 38 69 -45%
Gross Margin 11.8% 26.3%
EBITDA 27 40 -31%
EBITDA Margin 8.5% 15.1%
Adjusted EBITDA 27 40 -31%
Adjusted EBITDA Margin 8.5% 15.1%
CAPEX 77 42 +85%
22. Adjusted
EBITDA
Adjustments EBITDA Depreciation &
Amortization
Operating
Income
Net Financial
Expenses
Net Income
Before Tax
Income Tax Share of Profit in
Associates
Net Income Minority Interest Net Income
Group Share
22
156
From Adjusted EBITDA to Net Income – Q1 2012/2013
(6)
150
(163) (13)
(79)
+16 +0 (46)
(76)
(92)
+31
Impact of FX: -R$36 million (weaker BRL vs USD
and EUR)
Higher depreciation due to longer intercrop period
at Guarani (-R$22.3 million, Y-o-Y)
23. Cash Flow
In R$ Million
Q1 2012/13(1)
Adjusted EBITDA 156
Working capital variance (92)
Other operating (including income tax paid) (50)
Operating Cash Flow 14
Financial interests (63)
Dividends paid and received (48)
Capex (369)
Increase in capital 370
Others 19
Free Cash Flow (77)
Forex impact (185)
Acquisition & Perimeter impact (32)
Net debt variation (294)
23
Q1 Cash Flow Reconciliation
Capital Increase to Fund Cereal Expension and Diversification
100% contribution to
increase in capital (R$370
million)
Main CAPEX:
Brazil: R$154.4 million
Cereals: R$153.9 million
Indian Ocean: R$37.2 million
(1) Including increase in capital of R$370 million.
24. Debt
9.5% increase mostly due to currency effect
Net Debt / Adjusted EBITDA: 3.7x vs 3.2x in March, 2012
Currency impact due to the strengthening of USD and Euro
against Real: R$261 million
24
Gross Debt
Breakdown by Currency
Leverage (R$ MM)
(Net Debt/ Adjusted EBITDA)
Debt
In R$ Million
June 30,
20121
March 31,
2012 Change
Current 1,578 1,291 287
Non-current 2,550 2,384 166
Amortized cost (24) (25) 1
Total Gross Debt 4,103 3,650 453
In € 1,540 1,402 138
In USD 1,846 1,652 194
In R$ 677 557 120
Other currencies 65 64 33
Cash and cash Equivalent (792) (624) (168)
Total Net Debt 3,311 3,026 285
Related Parties Net Debt 22 17 5
Total Net Debt + Related
Parties
3,333 3,043 290
Real 16%
US Dollar
45%
Euro 37%
Others
2%
3.001
2.293
2.150
2.498
3.084
3.223
3.043
3.333
4.8x
3.0x
2.5x 2.6x
3.3x 3.4x
3.2x
3.7x
0
500
1000
1500
2000
2500
3000
3500
2
4
6
08/09 09/10 10/11 Q1
11/12
Q2
11/12
Q3
11/12
Q4
11/12
Q1
12/13
(1) Net debt as at June 30th 2012 restated including increase in capital of R$370 million.
26. Sugarcane
Brazil: increase in crushing estimative
• Rain impact on production to be compensated during the crop
• Investments in planting for the last 2 years combined to more favorable
weather : increase in crushing forecast for 12/11 up to 18.2 million tons
(+10.3% above 11/12)
Indian Ocean: favorable pricing environment for our products
• Mozambique: increase in production due to more sugarcane availability
• Réunion Island: stable crushing
Cereals:
Europe: multi-products facilities and niche markets
• Gluten production and dextrose project in BENP Lillebonne and cogeneration
and specialties in Zaragoza
Emerging Markets: Greenfields projects underway
• Brazil: Syral-Halotek corn plant pilot test schedule for Q4 2012/13
• China: JV with Wilmar established, first project under construction
26
Outlook
