Tereos InternacionalSecond Quarter 2010/11 Results

São Paulo - November 17, 2010

Highlights

Q2 2010/11 Financial Results

Operating Segment Review

Outlook and Summary

� Successful integration of recent acquisitions

• Operating the largest integrated cluster in São Paulo state after Mandu and Vertente acquisitions

• Sole producer in La Réunion following GQF acquisition

� Recent operational achievements

• Optimization of starch plants: stable volumes in Syral after closure of Greenwich plant

Tereos Internacional - Strategic Highlights

3

• Optimization of starch plants: stable volumes in Syral after closure of Greenwich plant

• Increased sugar production capacity in Brazil: successful start-up of Tanabi’s sugar factory and expansion in São José and Cruz Alta plants

• Start-up of Andrade’s cogeneration facility

� Tereos Internacional is well positioned to address a new industry landscape and implement our long-term growth strategy

Tereos Internacional - Q2 Financial Highlights

� Solid revenue growth: R$1.5 billion

• Year-on-Year: + 12.5% (+ 26.7% at constant currency)

� Adjusted EBITDA* : R$286 million

• Year-on-Year: + 44.3% (+ 70.1% at constant currency)

� Sugarcane

4

• Strong revenue growth: R$744 million (+ 82.5% year-on-year) driven by acquisitions, higher sugar production and favorable market conditions

• Guarani Adjusted EBITDA margin up to 30.9% from 11.5% improved by organic growth and acquisitions

� Cereal

• Stable revenue: R$751 million (+ 1.6% vs. Q1 2010/11), despite closure of Greenwich site

• Syral Adjusted EBITDA margin down to 9.5% from 16.2% impacted by higher cost of goods sold

* Adjusted EBITDA : EBITDA excluding non recurring items, accounting effect of the adjustment in the fair valueof the biological assets and financial instruments

Q2 Market Highlights

Sugar

� Raw sugar prices (NY#11) increased by 40% in the quarter ended September 30, 2010, driven by lower than expected production and strong demand on low world stocks

� Brazil: yields to be affected by dry weather

Starch

� Wheat prices increased by 52% in the quarter ended September 30, 2010, driven by

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� Wheat prices increased by 52% in the quarter ended September 30, 2010, driven by drought and fires that struck the Black Sea countries

� Starch & Sweeteners: next negotiation season (Q3/Q4) to reflect increase in cereal and energy prices, as well as sustained demand and tight spare capacity in Europe

Ethanol

� Ethanol prices rose (US: + 27% - Brazil: + 24% for hydrous - EU: + 28%) due to tight supply-demand balance

Q2 2010/11 Financial Results

591741

116

18

15

355 613

35

Revenues - Q2In R$ MM

1,498+12.5%

1,332 1,332

(149)

1,498

Brazil

La Réunion

Mozambique

Starch Europe

Ethanol Europe

Solid growth in Revenues, driven by acquisitions, higher sugar production and favorable market conditions

+ 240

+ 74

Q2 2009/10 Q2 2010/11

7

20 160183

Q2 2009/10 Currency Volume Price & Mix Q2 2010/11

Total Holdings

� Sugarcane

• Brazil: +73% mainly due to the contribution of Mandu and Vertente, increase in sugar production (+ 83%) and higher prices

• La Réunion: contribution of GQF that doubled the revenues, return to normal operating conditions in Bois Rouge

� Cereal

• Starch Europe: - 6.1% at constant exchange rate. Stable volumes after Greenwhich closure

• Ethanol Europe: + 2.8% at constant exchange rate

An improved Ajusted EBITDA margin

EBITDA - Q2

In R$ MM

61

12129

6139

51

+1.4%223226

26

Brazil

La Réunion

Mozambique

Starch Europe

Ethanol Europe

In R$ MM

12029

10

6

189

41

+44.3%

198

286

12

Adjusted EBITDA - Q2

8

Q2 2009/10 Q2 2010/11

-6

0 719

61

-4

Total Holdings

-6

0 719

56

Q2 2009/10 Q2 2010/11

� Sugarcane

• Brazil: Adjusted EBITDA margin of 30.9%,

• La Réunion: Adjusted EBITDA margin of 25%

� Cereal

• Starch: Adjusted EBITDA margin of 9.5%Ethanol: Adjusted EBITDA margin 4.4%

� Adjustments : R$59.8 million, including Biological Assets (R$36 million), Financial Instruments (R$20.8 million) and discontinued operations (R$3 million)

From Adjusted EBITDA to Net IncomeQ2 2010/11

286

In R$ MM

226

(60)

Discontinued operations: -R$3 MM

Fair value of biological assets: -R$36 MM

Fair value of financial instruments: -R$21 MM

Mainly Mandu and Vertente : -R$32.6 MM

And GQF: -R$13.9 MM

9

63

(43)

233

(41) (18) (1) (19)

(163)

Syral: -R$15.5 million

Guarani (+Mozambique): -R$27.3 million

AdjustedEBITDA

Depreciation&

Amortization

OperatingIncome

Net FinancialExpenses

Associates Net IncomeBefore Tax

Income Tax Net Income MinorityInterest

Net IncomeGroup Share

EBITDAAdjustements

Gain & Losses on Forex: +R$1 MM

Fair-value: +R$4 MM

Debt

Debt

In R$ MillionSep 30, 2010 Jun 30, 2010 Change

Current 1,667 1,598 + 4.3%

Non-current 1,236 1,001 + 23.5%

Amortized cost (16) (9) + 272.8%

Total Gross Debt 2,887 2,590 + 11.5%

In € 1,388 1,245 + 11.5%

In USD 757 424 + 78.5%

In R$ 703 857 - 18.0%

Other currencies 55 73 - 24.7%

Cash and cash Equivalent (440) (382) + 15.2%

Total Net Debt 2,447 2,208 + 10.8%

Real-denominated

24.2%

Othercurrencies

1.9%

Gross DebtBreakdown by currency

10

Total Net Debt 2,447 2,208 + 10.8%

Related parties net debt (31) (6) + 416.7%

Total Net Debt + Related parties 2,416 2,202 + 9.7%

� Net Debt: R$2,416 million + 9.7% vs. June 2010

• In line with seasonal increase in working capital and recent acquisition needs

� Net Debt / EBITDA: 3.4x

US Dollar-

denominated

26.1%

Euro-denominated

47.8%

Cash Flow

Cash Flow

In R$ MillionQ2 2010/11

Adjusted EBITDA 286

Working capital variance (197)

Other operating (6)

Operating Cash Flow 82

Financial interests net of dividends paid and received (50)

Capex net of proceeds from the disposal of assets (70)

Capex (104)

Proceeds from the disposal of assets 35

Cash Flow before acquisition and capital increase (37)

11

� Total net debt increase: R$214 million vs. June 30, 2010

• Working capital variance: seasonality impact in Brazil and Indian Ocean

• Acquisition and scope impact: Mandu and GFQ

Cash Flow before acquisition and capital increase (37)

Acquisition & Perimeter impact (128)

Capital increase 0

Free Cash Flow (165)

Forex impact (49)

Total net debt 214

Operating Segment Review

SugarcaneSugarcane

Brazil - Indian Ocean

Sugarcane - BrazilProduction

Ethanol Sales (‘000 m³) Energy Sales (‘000 MWh)Sugarcane Crushing (MM t) Sugar Sales (‘000 t)

5.23.9

0.4

5.98.8

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

305267 238 213

488

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

132120 120

99

179

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

4432

7

42

113

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

14

� Record level of sugarcane crushing: 8.8 million tons (+ 67.6% vs. Q2 2009/10)

� Completed integration of Vertente and Mandu

� Increased sugar production capacity in São José and Cruz Alta mills and start-up of Tanabi’s sugar factory

� Sugar production: 766 000 tons (+ 82.8% vs. Q2 2009/10)

• Mix: 58% sugar and 42% ethanol

� Ethanol production: 340 000 m³ (+ 87.8% vs. Q2 2009/10)

• Anhydrous: 33.5% of total ethanol vs. 28.7% in Q2 2009/10

355 +27

+141

613

+17+34

+39

Sugar

Ethanol

Sugarcane - BrazilFinancials

In R$ MM

Revenues

Key Figures

In R$ Million

Q2

2010/11

Q2

2009/10

Change

Reported

Revenues 613 355 + 72.7%

Gross Profit 158 120 + 31.7%

Gross Margin 25.9% 33.7%

EBITDA 139 51 + 175.1%

EBITDA Margin 22.7% 14.4%

Adjusted EBITDA 189 41 + 360.9%

Adjusted EBITDA Margin 30.9% 11.5%

EBIT 42 7 + 542.5%

EBIT Margin 6.9% 1.9%

Adjusted EBIT 92 - 3 n/a

15

Q2 2009/10 Price & Mix Volume Price & Mix Volume Others* Q2 2010/11

*inc. Cogeneration Agricultural Products and Hedging

Adjusted EBIT 92 - 3 n/a

Adjusted EBIT Margin 15.0% -0.8%

Capex 41 3 n/a

� Sharp increase in revenue: + 72.7% vs. Q2 2009/10

� Sugar: strong market conditions

• 65.4% of total revenue

• Sales volume: + 60.3% vs. Q2 2009/10

• Price (R$/ton): + 7.2%

� Ethanol: recovery in ethanol consumption

• 24% of total revenue

• Price (R$/m³): + 13.5%

� Revenues: + R$258 million

� Gross Margin excluding net accounting effect of fair value adjustments on biological assets: 29.5%

� Adjusted EBITDA: R$189 million

� Capex

• Plantation activities: R$12.5 million

• R$28.8 million for crushing and cogeneration capacity at Mandu (R$13.4 million), São José, Tanabi (R$6.6 million),and operational improvements (R$8.8 million)

Sugarcane - Indian OceanFinancials

Key Figures

In R$ Million

Q2

2010/11

Q2

2009/10

Change

Reported

Change

Constant

Currency

Revenues 15 18 - 18.2% + 19.6%

Gross Profit - 10 25 - 140.6% - 39.6%

Gross Margin - 66.7% 138.9%

EBITDA - 4 26 - 115.9% -123.7%

EBITDA Margin - 26.6% 144.4%

Adjusted EBITDA 10 12 - 16.6% + 161.9%

Adjusted EBITDA Margin 66.7% 66.7%

Key Figures

In R$ Million

Q2

2010/11

Q2

2009/10

Change

Reported

Change

Constant Currency

Revenues 116 35 + 231.4% + 297.0%

Gross Profit - 42 - 21 - 103.1% + 146.1%

Gross Margin - 36.2% - 60.0%

EBITDA 29 6 + 348.8% + 430.1%

EBITDA Margin 25.0% 17.1%

Adjusted EBITDA 29 6 + 383.3% + 430.1%

Adjusted EBITDA Margin 25.0% 17.1%

La Réunion Mozambique

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Adjusted EBITDA Margin 66.7% 66.7%

Capex 5 7 - 28.6%

� Revenues: + 19.6% at constant exchange rate in Q2 2010/11

� COGS in Q2 2009/10 affected by the fair value adjustment of biological assets of R$13.8 million

� Investments targeting acceleration in the yield improvements of this crop: irrigation, draining and replanting of sugarcane fields

Adjusted EBITDA Margin 25.0% 17.1%

Capex 41 3 n/a

� Crushing: 1 million ton, + 11% vs. Q2 2009/10

� Revenues

• Integration of Groupe Quartier Françaisacquired on July 3

� Adjusted EBITDA: sharp increase

� Capex: R$41 million

• Environmental investments: R$6 million

• Maintenance: R$35 million

CerealCereal

Starch Europe - Ethanol Europe

Starch Europe - SyralProduction

Co-products Sales (‘000 t)

258

236 236 239

257

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

Cereal Grinding (‘000 t) Starch & Sweeteners Sales (‘000 t) Ethanol & Alcohol Sales (‘000 m3)

424

392413

437424

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

49

4245 45 46

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

686638

673 693 702

Q2

09/1

0

Q3

09/1

0

Q4

09/1

0

Q1

10/1

1

Q2

10/1

1

� Cereal grinding increased 2.5% to 702,000 tons, in line with strong market demand for starch products

• Starch and Sweeteners: 90.1% of production

• Alcohol & Ethanol: 9.9% of production

� Syral maintained its 2009 sales and inventory volumes levels with the optimization of its industrial sites, after the closure of the Greenwich plant

• Starch and Sweeteners production now distributed among 5 plants in France (2), Belgium (1), Italy (1), Spain (1)

18

Key Figures

In R$ Million

Q2

2010/11

Q2

2009/10

ChangeReported

ChangeConstant Currency

Revenues 591 741 - 20.2% - 6.1%

Gross Profit 128 209 - 38.8% - 26.4%

Gross Margin 21.7% 28.2%

EBITDA 61 121 - 49.6% - 40.7%

EBITDA Margin 10.5% 16.3%

Adjusted EBITDA 56 120 - 53.3% - 44.6%

Adjusted EBITDA Margin 9.5% 16.2%

EBIT 29 84 - 65.1% - 50.2%

EBIT Margin 5.0% 11.4%

Adjusted EBIT 24 83 -71.1% n/a

Adjusted EBIT Margin 4.1% 11.3%

Capex 18 77

Starch Europe - SyralFinancials

741

(111) (4)(35)

591

Revenues

In R$ MM

Capex 18 77 - 76.6%

� Gross Profit

• Impacted by 20% increase in gas price expenses

� Adjusted EBITDA : R$56 million

• Fair value: + R$3 million (energy), + R$10 million (currencies), - R$8 million (cereals)

� Capex : R$18 million

• Energy savings

• Selby grain alcohol plant: Optimization of the production line and equipment purchase

19

� Revenues: -6.1% at constant currency, but + 2.7% sequentially

� Stable volumes despite the closing of Greenwich plant

� Decrease of prices in mix of products sold

� Normalized gross margins in Q4 as new sales contracts reflect higher raw material and energy costs

Q2 2009/10 Currency Volume Price & Mix Q2 2010/11

Ethanol EuropeFinancials

Revenues

In R$ MM

183

(27)+10(5)

160

Key Figures

In R$ Million

Q2

2010/11

Q2

2009/10

ChangeReported

ChangeConstant Currency

Revenues 160 183 - 12.6% + 2.8%

Gross Profit 7 23 - 70.9% - 65.8%

Gross Margin 4.4% 12.6%

EBITDA 7 19 - 63.8% - 57.3%

EBITDA Margin 4.4% 10.9%

Adjusted EBITDA 7 19 - 63.1% - 57.3%

Adjusted EBITDA Margin 4.4% 10.9%

Capex 6 19 - 68.4%

20

Q2 2009/10 Currency Volume Price & Mix Q2 2010/11

� Production : 66,000 m³ + 4.8% vs. Q2 2009/10

� Revenue : + 2.8 % at constant currency rate vs. Q2 2009/10• Reduction in gross margin mainly due to higher energy

prices (+R$4 MM in the quarter) and higher industrial costs due to irregular industrial production

� Alcohol and Ethanol:• 5.4% price increase but light reduction in volume

� Revenues: + 2.8% at constant currency

� EBITDA• Lower operational efficiency after barley test

• Technical improvements works during the quarter

• Higher energy costs

� Capex: R$6 million • Technical improvement of facilities and energy savings

Outlook and Summary

Outlook - Short Term

Sugar

� Market: world stocks at very low levels – Brazil: tight supply, lower-than-expected increase in sugarproduction in Center-South

� Solid margins in a positive environment despite a reduction in the expected crushing from 20.3 milliontons to 20 million tons

Starch

� Wheat, Corn: world stocks estimated to be sufficient to meet demand levels

� Corn: lower yields may cause increase in near term corn prices. Company’s hedging policy to reduceimpacts of cereal prices increases

� Progressive return to normalized Starch & Sweeteners margins. Favorable drivers for future contract

22

� Progressive return to normalized Starch & Sweeteners margins. Favorable drivers for future contractnegotiations (Q4):• Increased structural demand

• Tight supplies

• Lack of availability of large volumes in some markets

Ethanol

� Market: solid prices as more sugarcane is diverted to sugar and as increased corn and wheat prices

� Improved margins, driven by first premium alcohol volumes delivered by DVO and recovery inindustrial performance in Lillebonne

� First deliveries of the 2.2 MM m³ ethanol agreement with Petrobras and improved mixanhydrous/hydrous

Outlook - Medium Term

� Sugarcane activities

• Brazil – Cogeneration: 2 energy contracts representing an average of 55.7 MW awarded to Guarani for the 2013/14 crop for Mandu and São José plants

• Continued high sugar and ethanol prices for the Brazilian sugarcane operations, despite a reduced crop in Brazil

• Continued contributions from recent acquisitions in Brazil and La Réunion

� Cereal activities

23

� Cereal activities

• Ethanol – Gluten: investment plan approved for the improving Lillebonne product mix by producing gluten alongside ethanol in the plant

• Normalized gross margins for the European cereal operations in the final quarter

� Tereos Internacional is well positioned to address new industry landscape and implement its long-term growth strategy

24