1. Tereos Internacional
Third Quarter 2013/14 Results
São Paulo – February 14th, 2014

2. Q3 2013/14 Highlights

Operational

Guarani:


Increased ethanol production in the quarter on better margins (40% of TRS vs. 36% last year)

Cogeneration sales continue to perform well on a YTD basis (+48% over 9M 12/13)

First benefits of Guarani 2016 efficency program


Record crushing this crop of 19.7 million tonnes (full consolidation) driven by strong yields (92
t/ha or +11% above the average in the State of São Paulo) on slightly lower TRS (-1%)
Cruz Alta and Severinia mills were granted the Bonsucro certification, which allows them to be
in accordance with the European Directive for biofuels and renewable energy
Africa/Indian Ocean:


Climate conditions impacted crushing volumes but solid perfomance from Indian Ocean
operations
Cereals Europe:


A&E margin improving versus last year and S&S contribution increasing sequentially


Higher grinding in the quarter compared to last year due to continuous improvement of
Lillebonne operational performance
Cost and efficiency improvement programme “Performance 2015” progressing
Cereals Brazil:


Improved starch sales volumes while glucose sales ramping up; customers’ certification
process ongoing
Strategic

2
Cereals Asia: Acquisition of 50% of Redwood Indonesia establishing presence in Indonesia,
Asia’s third largest market for sweeteners. Closing pending regulatory approvals

3. Market Highlights
Sugar:
580
US$/MT 21
550
19
520
18
490
17
460
16
430
15
20
400
 Raw sugar prices rallied above 20.0 USD cents/lb in October,
before dropping to 16.4 USD cents/lb at the end of December
mainly due to higher production worldwide and comfortable
stock-to-use ratios in major importing countries. Prices
currently hovering around 16 USD cents/lb.
14
Jan-13
Apr-13
Jul-13
LIFFE#5
 BRL/USD devaluation during the quarter (-7%) helped to offset
the drop of raw sugar prices for Brazilian producers
Oct-13
NY#11
€/MT
Starch:
270
 Mar, 2014 wheat future prices appreciated around 7% from Oct 1st
to Dec 31st
250
230
210
190
 The drop in wheat prices since beginning of January has lowered
significantly the wheat to corn spread
170
150
Jan-13
Apr-13
Jul-13
Corn MATIF
Oct-13
Wheat MATIF
Ethanol:
1900
R$/m³
€/m³
700
1700
650
1500
600
1300
550
1100
500
900
450
 In Brazil, ethanol prices benefited from the 4% increase in
gasoline prices at the refinery. Both hydrous and anhydrous
prices were on average 9% and 7% higher quarter-on-quarter
700
400
Jan-13
3
Apr-13
Jul-13
Brazil ESALQ
Source: Bloomberg
Oct-13
Europe Rotterdam
 In Europe, FOB Rotterdam prices continued to erode, declining
during the quarter from €543/m3 to €492/m3, on weaker seasonal
demand and ample stocks in Europe

4. Q3 2013/14 – Revenues
Positive Effect of BRL Devaluation and Improvement in Lillebonne Volumes
Net Revenues (R$ MM)
1,903
+5.9%
2,015
+217
557
540
250
281
847
1,014
(35)
(46)
(25)
Brazil
Africa / Indian
Ocean
Starch Europe
2,015
1,903
Ethanol Europe
219
Q3 2012/13

210
Q3 2013/14
Q3
2012/13
Currency
Volume
Price & Mix
Others
Revenue was positively impacted by:


Better performance of Lillebonne on higher volumes of ethanol and gluten


Higher ethanol prices and improved energy sales volumes in Brazil
Positive currency impact of the weaker Real vs. Euro (-17% Y-o-Y)
But partially offset by:


Slightly lower volumes of sweeteeners combined with overall lower prices

4
Lower sugar volumes & prices in Brazil and reduced crop volumes in Africa/Indian Ocean
Lower ethanol trading volumes for Tereos Group (end of trading activities)
Q3
2013/14

5. Net Revenues Evolution by Product
December 2013 – 3 Months
December 2012 – 3 Months
Others (incl.
Energy)
13%
Sugar
27%
Alcohol &
Ethanol
17%
Co-products
13%
Others (incl.
Energy)
13%
Sugar
22%
Alcohol &
Ethanol
18%
Starch &
Sweeteners
30%
Co-products
17%
Starch &
Sweeteners
30%

Well-diversified portfolio with relatively stable breakdown compared to Q3 12/13

Reduction in sugar volumes & prices in Brazil led to reduced share of sugar in total revenues

Co-products increased their share year-on-year on a combination of higher prices and volumes for gluten
5

6. Q3 2013/14 - Adjusted EBITDA
Increased Contribution of All Businesses, Except for Africa
Adjusted EBITDA (R$ MM)
264
+5.8%
279
Brazil
138
85
Africa / Indian
Ocean
Starch Europe
60
54

Q3 2013/14
+2
+4
(25)
279
264
Holding
23
Q3 2012/13
-2
51
-8
Ethanol Europe
+31
+4
142
Q3
2012/13
Brazil
Margin 13.9%
Africa /
Indian
Ocean
Starch
Europe
Ethanol
Europe
Holding
Q3
2013/14
Margin 13.9%
Adjusted EBITDA improved year-on-year as a consequence of:


Recovery in profitability at A&E Europe segment on higher volumes and lower input prices,
despite reduced ethanol prices

Starch & sweeteners profitability benefiting from lower cereal input costs; however fixed cost
increase, due to recent investments, not fully covered yet by higher volumes due to weak
economic environment

6
Improvement in profitability at Guarani, despite slightly lower sales (volume & prices) thanks
notably to first benefits from Guarani 2016 (both at agricultural and industrial level)
Africa/Indian Ocean operations impacted by adverse climate conditions although Indian
Ocean business continued to deliver a solid performance

Positive FX conversion effect linked to Real depreciation vs. the Euro year-on-year

7. Sugarcane Brazil – Production & Sales
Record Sugarcane Crushing at 19.7 million tonnes
Sugarcane Crushing (MM t)
Sugar Sales (‘000 t)
Ethanol Sales (‘000 m³)
Energy Sales (‘000 MWh)
0.0% YoY
-8.7% YoY
-2.5% YoY
+44.2 YoY
70
29
4,9
367
335
135
132

Q3
12/13
Q3
13/14
Q3
12/13
Q3
13/14
Q3
12/13
Q3
13/14
Q3
12/13
116
Own Sales
139
Q3
13/14
4,9
Trading
Crushing


Better-than-expected agricultural yields at 92 t/ha vs. 84 t/ha in 2012/13


Higher crushing in 2013/14: 19.7 million tonnes or +8% y-o-y (full consolidation) and 18.3 million
tonnes or +11% y-o-y (equity consolidation)
Mechanical harvesting at 93% for own sugarcane
Improvement in production


Sugar:

7
Mix: 63% sugar, 37% ethanol vs. 64% / 36% last year


Overall production up 10% to 2.5 Mt (expressed in TRS)
Ethanol: 535 Km³
1.5 Mt
+9% YoY
+13% YoY
Progress on cogeneration

YTD energy sales (including trading) up 48% to 695 GWh

8. Sugarcane Brazil – Financials
Improved EBITDA Despite Lower Volumes and Prices
Net Revenues (R$ MM)
Key Figures
(32)
557
540
Sugar
540
557
-3%
Gross Profit
(4)
2012/13
92
84
+9%
Gross Margin
(12)
2013/14
Revenues
+10
Q3
In R$ Million
+21
Q3
17.0%
15.1%
24
6
4.4%
1.1%
142
138
26.2%
24.8%
EBIT
EBIT Margin
Ethanol
Adjusted EBITDA
Adjusted EBITDA Margin
Q3 2012/13
Price & Mix Volume Price & Mix Volume

Sugar: 55% of total net revenues
Average selling price: -4% Y-o-Y at 956 R$/t
(ex-hedging), partly on negative mix effect
Ethanol: 30% of total net revenues

Volume sold down -3% to 132 Km3

8
+3%

Stable volume crushed Y-o-Y, but production
down 5% (expressed in TRS) on lower sugar
content

Adjusted EBITDA: R$142 million
Volumes reduced -9% to 335 Kt


+282%
Others Q3 2013/14


Change
Average price up 15% Y-o-Y at 1,232 R$/m3
Cogeneration (ex-trading): R$20.1 million vs.
R$18.1 million in Q3 12/13

Improvement in profitability thanks notably
to first benefits from Guarani 2016

Adjusted EBITDA Margin1 for Q3 13/14
including tilling as depreciation: 34%
(1) Tereos Internacional allocates tilling expenses as
cost. If tilling expenses were allocated as
investment, Adjusted EBITDA for Q3 13/14 would have
reached R$183 million.

9. Sugarcane Africa/Indian Ocean – Production and Financials
Climate Conditions Impacted Crushing Volumes
Key Figures
Q3
2013/14
2012/13
Revenues
250
281
-11%
Gross Profit
58
100
-42%
Gross Margin
Sugar sales (‘000 t)
Q3
In R$ Million
Sugarcane Crushing (’000 t)
23.2%
35.7%
22
49
8.8%
17.4%
60
85
24.0%
30.3%
-23.3% YoY
-27.8% YoY
1,176
86
849
66
EBIT
Q3
13/14
Q3
12/13
13/14
Q3
12/13
EBIT Margin
Q3
Change
Adjusted EBITDA
Adjusted EBITDA Margin
Revenue Breakdown by Product

-55%
-30%
Sugarcane crushing


Trading and
others
25%
Indian Ocean: total crushing at 1.7 Mt (-6% vs.
LY), impacted by the severe drought in Q3 13/14
Africa: sharp reduction in crushing
(-35%) this crop on irrigation problems

Sugar production: down 12% this crop at 249 kt

Revenues: -11% Y-o-Y
 Lower crops in Indian Ocean and Africa
impacting revenues

Sugar Indian
Ocean
56%
Adjusted EBITDA: -30% Y-o-Y
 Solid performance in Indian Ocean, more than
offset by the impact of reduced crop
volumes in Africa
Sugar Africa
19%
9

10. Cereal Segment - Production and Sales
Higher Grinding on Recovery of Lillebonne Production and Palmital Ramp-up
Cereal Grinding
(‘000 t)
Starch & Sweeteners
Sales (‘000 t)
Alcohol & Ethanol
Sales (‘000 m3)
Co-products Sales
(‘000 t)
+9.3% YoY
-1.9% YoY
-3.7% YoY
+5.4% YoY
811
412
276
404
Own Sales
79
Q3
13/14
Q3
12/13
Q3
13/14
Q3
12/13
Q3
13/14
Q3
12/13
50 +58.0% YoY
291
Q3
13/14
742
Q3
12/13
25
58
Trading
 Grinding in Q3 13/14: +9% mostly driven by better performance at Lillebonne and ramp-up of Palmital
corn factory
 Starch & Sweeteners sales: -2%
 Alcohol & Ethanol sales: -4%
10
Reduction in sales of functional sweeteners and specialties,
but some growth in starch thanks to prior year investment at
Marckolsheim
Significant recovery in own volume sold thanks to improved
performance at Lillebonne. Lower ethanol trading sales for
Tereos Group (end of trading activity)

11. Starch & Sweeteners – Financials
Positive Volume and Currency Effect Led to Higher Revenues and EBITDA
Net Revenues (R$ MM)
Key Figures
Q3
In R$ Million
2013/14
2012/13
1,014
847
+20%
Gross Profit
160
139
+16%
Gross Margin
+140
Q3
15.8%
16.4%
3
10
0.3%
1.2%
54
51
5.4%
6.0%
Change
+8
Revenues
+47
(28)
1,014
847
EBIT
EBIT Margin
Adjusted EBITDA
Q3 2012/13Volume Price & MixCurrency Others Q3 2013/14

Adjusted EBITDA Margin
-71%
+7%
Revenues: R$1,014 million, up 20%


Higher starch and co-products sales, particularly gluten, more than compensated for lower
sweeteners volumes and led to a positive +6% volume effect


Positive effect of Real devaluation vs. Euro (-17% on average Y-o-Y)
Prices for S&S reflected the decrease of cereal and sugar prices (isoglucose); gluten prices were up
year-on-year
Adjusted EBITDA: R$54 million, up 7% Y-o-Y

11
Improvement year-on-year due to currency effect, although EBITDA increased sequentially, thanks to
lower input prices, but yet to fully benefit from recent investments in Europe and Brazil

12. Alcohol & Ethanol Europe – Financials
Lower Wheat Prices and Better Industrial Performance at Lillebonne
Net Revenues (R$ MM)
Key Figures
(32)
210
219
-4%
22
-2
-979%
Gross Margin
219
2012/13
Gross Profit
(7)
2013/14
Revenues
(7)
Q3
In R$ Million
+38
Q3
10.3%
-1.1%
10
-19
4.8%
-8.5%
23
-8
10.9%
3.7%
EBIT
210
EBIT Margin
Adjusted EBITDA
Q3
2012/13
Volume
Price & Mix
Currency
Others
Adjusted EBITDA Margin
Q3
2013/14
Revenue Breakdown by Product

Change
-154%
-380%
Revenues: R$210 million, down 4%


Ethanol
traded 24%
Lower volumes traded on behalf of Tereos and
lower FOB Rotterdam prices
Adjusted EBITDA: R$23 million, up Y-o-Y

Ethanol own
sales 69%
12
Better industrial performance led to higher ethanol
volumes

Co-products
and other
7%
Benefit from lower wheat prices and fixed cost
dilution on better capacity utilization

13. Q3 2013/14 - Capital Expenditures
Near completion of CAPEX Programs Leading to Lower Investments Y-o-Y
CAPEX (R$ MM)
CAPEX (R$ MM)
Starch
Europe
20%
Ethanol
Europe
2%
+34
+1
(58)
Africa /
Indian
Ocean
8%
203
Brazil: R$119 million
•
Mostly related to maintenance, including
replanting, and the cogeneration and
capacity expansion of Guarani’s factories
•

80% of the expansion program completed
Africa/Indian Ocean: R$15 million
•
13
170
Brazil
70%
Q3 2012/13

(10)
Primarily maintenance and plantation in
Mozambique

Africa /
Indian
Ocean
Starch
Europe
Ethanol
Europe
Q3 2013/14
Starch & Sweeteners: R$34 million
•

Brazil
Finalization of 1st phase of investments in
Brazil corn starch facility
Alcohol & Ethanol Europe: R$3 million
•
Factory maintenance at Lillebonne and DVO

14. Cash Flow Reconciliation & Debt Composition
Cash Flow
Debt
9M 13/14
In R$ Million
Adjusted EBITDA
Dec 31st, 2013
In R$ Million
830
March 31st,
2013 (Restated)
∆
Others
(84)
Operating Cash Flow
Financial interests
Dividends paid and
received
10
(151)
3
Capex
103
Non-current
2,968
2,399
569
(27)
(26)
(1)
4,873
4,202
671
In €
1,889
1,596
293
In USD
1,918
1,688
230
1,047
882
165
46
62
(16)
Cash and Cash Equivalent
(585)
(892)
308
4,288
3,310
979
229
13
217
4,519
3,322
Amortized cost
Total Gross Debt
(590)
Others
1,829
In R$
(736)
1,932
Total Net Debt
Working capital variance
Current
135
Other currencies
Free Cash Flow
(593)
Forex impact
(603)
Others
(1)
Net Debt Variation
(1,197)
Related Parties Net Debt
Total Net Debt + Related
Parties


Currency Effect on Debt: Devaluation of the Real against Euro and USD

14
Working Capital: Peak level of inventories due to intercrop sales commitments in Brazil
Net Debt/Adjusted EBITDA: 4.9x vs. 4.2x on March 31st, 2013
1,197

15. Outlook
 Sugarcane
 Brazil

Multi-year investment program in Brazil nearing completion to reduce investments level next year

First benefits of Guarani 2016 efficiency program

Impact of dry weather effect since December in Brazil on sugarcane crop volumes next year is
being monitored closely. Guarani should benefit from 1 million tonnes of standing cane and the
excess cane sold to other mills during the 2013/14 crop
 Africa/Indian Ocean

Drought in the Reunion Island should lead to slight decrease in volumes next crop, while
sugarcane crushing in Mozambique should start to recover
 Cereals
 Europe

Continuous benefit of lower cereal prices with better utilization rates at Lillebonne to dilute fixed
costs

Focus on “Performance 2015” plan to improve margins
 Brazil

Ramping up of corn processing and glucose sales
 Asia


15
Dongguan construction and Tieling diversification plan in China
Closing of the acquisition of Redwood Indonesia

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