Heringer Day

August, 2011

2

Agenda

3:10 p.m. – Global and Local Fertilizer Industry Over view Company OverviewDalton Carlos HeringerCEO

4:00 p.m. – Questions and Answers Session

4:30 p.m. – Coffee break

5:00 p.m. – Global and Local Agribusiness Overview –André Pessoa - Agroconsult Consultoria e ProjetosManaging Partner

5:45 p.m. – Investor Relations and Closing

3

Global Fertilizer Industry

4

Global Fertilizer Consumption by Nutrient

�Estimated growth of 2.9% in 2011

�Annual estimated average growth of 2.4% from 2010 to 2015

Source : IFA, December 2010; (e) estimate

5

Global Production Capacity of Fertilizers

�Strong production recovery after 2009, increasing utilized capacity

Source: IFANote 1 – The total volume contemplates industrial us e fertilizers

6

Global Fertilizer Producers - 2009

Phosphate Rock (P)

Potassium Chloride (K)

Source : ANDA / IFA

Ammonia (N)

Americas14.8%

Africa2.6%

Asia

56.5%

Other Continents

26.1%Americas

21.5%

Africa

21.0%

Asia

49.0%

Other Cont.

8.4%

Americas

31.1%Asia

22.9%

Europe

46.0%

7

Investments in Raw Material Production

Nitrogen (N) Phosphorus (P) Potassium (K)

World Reserves → Available Limited Limited

Investments in new

capacities →US$ 1.4 billion per

1 million tons of ammonia

3 years

US$ 1.6 billion per

1 million tons of P2O5(i)

3 - 4 years

US$ 1.6 billion per 1

million tons of KCL(ii) 5 -

7 years

Producing Countries →~ 75 countries (ammonia

basis) 1st China; 2nd Russia;

3rd India; 4th USA

~ 100 countries (P2O5

basis) 1st China; 2nd USA;

3rd Morocco; 4th Russia

12 countries (KCl basis)

1st Canada; 2nd Russia;

3rd Belarus; 4th Germany

Market

Characteristics → RegionalGlobal

Global Players

Global

few Global Players

Brazilian Position →1% of World's Production 3%

of World's Consumption

4% of World's Production 9%

of World's Consumption

1% of World's Production 14%

of World's Consumption

Announced

Investments →China, Qatar, Saudi Arabia,

Egypt, Brazil and Iran

China, Brazil, Morocco,

Saudi Arabia and Peru

Canada, Argentine, Russia,

China, Israel and Jordan

(i) includes phosphate rock, sulfuric acid, phosphoric acid and MAP /DAP

(ii) conventional mining

Source: IFA / ANDA / Potash Corp / BMO - APRIL/2009

Note:(1) In nutrient consumption/ Source: IFA/ANDA8

Global Markets and CAGR of Largest Markets - 2010

Global Largest Fertilizer Markets (1) CAGR of Largest Markets

�Brazil is the world’s 4th largest market and is growing above the global average

51.1

28.0

20.2

10.1 4.9 3.8 3.1 2.9

47.6

0

10

20

30

40

50

60

Volume 2010

mm

to

ns

29.8%

16.3%

11.8%

5.9%

2.9% 2.2% 1.8%1.7%

27.7%

Market Share 2010

INDIA USA BRAZIL

3.5%

4.6%

0.4%

51.1

28.0

20.2

10.1

3.2

18.6

12.0

27

6.2%

9

Brazilian Fertilizers Industry

10

Evolution of Brazilian Industry and Heringer

Source: Anda / Heringer

CAGR 1995-2010

Heringer CAGR17.5%

Industry CAGR 5.6%

Heringer’s 2010 Market Share = 18.5%

10.812.2

13.814.6

13.6

16.3 17.0

19.1

22.8 22.8

20.221.0

24.6

22.4 22.4

24.5

0.4 0.7 0.8 1.0 1.1 1.5 1.5 1.7 2.1 2.2 2.0 2.53.3 3.2 3.9 4.5

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Brazilian Market Heringer

11

Sustainability and Fertilizers in Brazil

�Planted area CAGR (1969 to 2009) of 2%, versus agricultural production CAGR of 5%

�Fertilizer consumption CAGR of 7% shows the contribution of this input to environmental preservation,

leading to an important gain in agricultural productivity

1,800

1,600

1,400

1,200

1,000

Base: 1969/70 Marketing Year = 100

PLANTED AREA/ha

AGRI PRODUCTION

FERTILIZERS

*Planted area in hectares of soybean, corn, beans (grain), paddy rice, wheat (grain), herbaceous cotton, sorghum (grain), oats (grain), barley (grains), triticale (grain), sunflower (grain), rye (grain).

*Agricultural production of following crops: soybean, corn, beans (grain), paddy rice, wheat (grain), herbaceous cotton (seed), sorghum (grain), oats (grain), barley (grain), triticale (grain), sunflower (grain), rye (grain).

Source: Agroconsult

12

Brazil - Total and Arable Land

Source: IBGE, CONAB, MAPA , GV Agro

% Total area % Arable area

Amazon Rainforest 350 41.1%

Legal Reserve 58 6.8%

Cities, Lakes, Rivers & Waterlogged areas 20 2.4%

Other Uses 78 9.2%

Reforestation 5 0.6%

Sub-total 511 60.0%

Pasture 172 20.2% 50.6%

Annual and Permanent Crops 72 8.5% 21.2%

Area Available for Agriculture 96 11.3% 28.2%

Sub-total 340 40.0% 100.0%

Total Brazil 851 100.0%

Regional Distribution - millions of ha

13

Brazilian Fertilizer Production Chain

�Segmentation of the production and distribution chain

�In 2010, Brazil imported 62% of the fertilizer it consumed

Mineral Extraction

Natural Gas

Natural Gas

(N)

PhosphateRock

(P)

Potassium

(K)

Petrobras

Vale Fert.Copebras Galvani

Vale Fert.

Urea /

NitrateMAP / DAP TSP

Vale Fert.

Petrobras

Copebras

Vale Fert.

Copebras

Timac

Vale Fert.

Yara

NPKMixture

Producers

Mixers and

Distributors

(NPK)

Heringer Bunge

MosaicYara

Fertipar

ADMOther

N

SSP

Vale Fert. Copebras

Galvani

HeringerYara

TimacBunge

CibrafertilFospar

Profertil

P K

Potassium

Chloride

Vale Fert.

Basic and Intermediate Fertilizer Producers

14

�Heringer reached a 18.5% market share in 2010

Major Players in NPK Market

Source: Heringer estimates

20101995

18.5%

6 companies:

80%

Approx. 100 companies:

20%

30%

Takenaka

4%

Manah

10%

IAP

7%

Serrana

11%

Trevo

14%

Fertibras

3%

Solorico

7%

Fertiza

4%6%

4%

COPAS

HERINGER

BUNGE 32%

MOSAIC

11%YARA

17%

OTHERS

15

Brazil’s Agricultural Calendar

�Production cycle of the five crops with the highest fertilizer consumption in Brazil

CROPS

Harvest Winter Crop Harvest

Planting

Planting/Coverage

Harvest

Planting/Coverage

Northeast Harvest

Planting

Sugarcane Planting 12-Month Sys.

Soybean

Sugarcane

Coffee

FEBJAN JULJUNMAR DECNOVOCTSEPTAUGMAYAPR

Center-South Harvest

Harvest

Winter Crop Planting

Sugarcane Planting 18-Month System

Corn

Winter Crop Planting / Coverage

Northeast

Harvest

Cotton

(Mato

Grosso)

Planting

Harvest Winter Crop Harvest

16

Brazil: Important Agribusiness Player

Brazil as a % of Global Exports - 2010/11

�Brazil is one of the largest producers/exporters of agricultural products and has one of the lowest

production costs in the world

Brazil as a % of Global Production - 2010/11

Orange Juice

Coffee (bag)

Soybean (grain)

Sugar Cotton CornOrange Juice

Coffee (bag)

Soybean (grain)

Sugar Cotton Corn

1ST

1ST

1ST

2ND

5TH 3RD

1ST

1ST

1ST2ND

5TH 3RD

Source: USDA/ Agroconsult – in metric tons

17

The Company

18

Fertilizer Deliveries by Crop

�Heringer offers solutions for many different crops, minimizing the volatility associated with

local climates and other specific conditions, such as price cyclicality, pests and disease

Source: LSPA – IBGE/CEPE AGRO and ANDA

Heringer - 2010Brazilian Market - 2010

Sugarcane

14%

Other

27%

Reforest.

3%

Coffee

6%

Corn

16%

Soybean

34%

Sugarcane

20%

Other

22%

Reforest.

6%

Coffee

17%

Corn

17%Soybean

18%

Specialty Products

19

� Strong growth in Specialty Products’ share of overall sales in 2Q11 and 1H11

�Specialty products help boost margins and improve customer loyalty with their high quality and efficiency

�One of the largest portfolios of specialty products on the market (31 products)

Share of Specialty Products Specialty Products Line

Sales Volume

20

Sales by Segment and Number of Clients - 2010

�Focus on the retail segment is important for increasing profitability and mitigating risks

�47,000 clients in the last 12 months

Individuals/Companies = 86% of volume

Sales by Segment Number of Clients

2008 2009 2010

34,997

45,190 44,958Individuals

42%

Companies

44%

Cooperatives

8%Resale

6%

Mixing Units and Production Capacity

� 19 units located in the main consumer

market, with installed mixing capacity of

5.7 million metric tons

�1 Sulfuric Acid and Single Super

Phosphate (SSP) Unit

21

1.9%

12.2%

29.7%28.6%

27.6%

Total deliveries in Brazil by region - 2010

North Northwest Midwest Southeast South

NORTH

Rosário do Catete

Camaçari

NORTHEAST

Legend

Mixing Units

SSP Unit

MIDWEST-

Rondonópolis Anápolis

Dourados

Rio Verde

SOUTH

Paranaguá

Porto Alegre

Bebedouro

Ourinhos

ManhuaçuTrês Corações

Uberaba

Viana

Paulínia

Iguatama

SOUTHEAST

Rio Grande

São João do

Manhuaçu

Catalão

22

Financial Highlights

�EBITDA in 2010 was the highest in Heringer’s history

2006 2007 2008 2009 2010

Volume (million metric tons) 2.5 3.3 3.2 3.9 4.5

Net Revenue (R$ thousand) 1,435,969 2,260,839 3,524,559 3,192,314 3,521,473

EBITDA (R$ thousand) 58,606 83,266 90,113 38,765 212,331

EBITDA Margin 4.1% 3.7% 2.6% 1.2% 6.0%

1H11 Income Statements (R$ Thousand)

� Net Revenue growth due to higher sales volume and prices

� Decrease in SG&A expenses as a percentage of Net Revenue due to scale gains

�Decrease in net financial expenses due to foreign exchange variation

23

Strong recovery in gross margin, net margin and EBITDA margin in 1H11

1H11 % NR 1H10 % NR ∆ % 1H11/10

Net Revenue 1.608.670 100,0% 1.185.241 100,0% 35,7%

COGS (1.414.256) -87,9% (1.113.748) -94,0% 27,0%

Gross Profit 194.414 12,1% 71.493 6,0% 171,9%

Freight and Commissions (87.524) -5,4% (67.921) -5,7% 28,9%

SG&A (71.690) -4,5% (62.288) -5,3% 15,1%

EBITDA 65.086 4,0% (27.216) -2,3%

Net Fin. Income / (Exp.) (28.683) -1,8% (56.964) -4,8% -49,6%

Net Income 9.758 0,6% (67.713) -5,7%

24

2011 Outlook

25

Initiatives

• Development of new technologies for fertilizers

• Partnerships with academic institutes and research

center

• Closer relationship with clients and suppliers

• Focus and transparency in communication and

sustainability

2011 Outlook

�Average price of fertilizer raw materials higher than in 2010, but with trend of lower

volatility

�Positive scenario for agriculture commodities in 2011: profitability of rural producers,

with good barter ratio of agricultural products versus fertilizers

�Seasonality expected in the 1st half is 43% and 57% in the 2nd half of 2011

� Brazilian fertilizer market expected to grow by 6.0% to volume of 26.0 million metric

tons in 2011

�Grain output projected to increase in the 2010/11 season and 2011/2012 season

26

International Raw Material Prices

27

�Average prices of fertilizer raw materials higher th an in 2010

�Brazil is a Price Taker

�Barter ratios remain at favorable levels

Source: Heringer - Prices in USD

CFR* = cost and freight per ton

0

100

200

300

400

500

600

700

May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11

Uréia Sulfato de Amônio Nitrato de Amônio Super Fosfato Simples Super Fosfato Triplo Cloreto de Potássio DAP MAP

28

Agricultural commodities demand fundamentals

Source: USDA, August, 2011

Grains: Corn, Millet, Barley, Mixed Grains, Oat, Rice, Rye, Sorghum and Wheat

�Consumption adjusted to production

�Low inventory world levels of grains

�Per capita income from emerging markets increased strongly in the last years,

generating and inertial demand for food

�Population and urbanization growth in the world

23%24%

22%

26%

36%

30%

25%

32%

23%

19%

19%

18%

22%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Grains World Production Grains World Consumption Final Inventories % Inventory / Use

Brazilian Fertilizer Market - Seasonality

Source: Anda / Heringer

2011E – Estimate 29

30

�Expected growth of 6% in 2011

Brazilian Fertilizer Market - Evolution and Expectations for 2011

Source: Anda / Heringer

2011E – Estimate

Agricultural Commodities - Prices

Fonte e projeção : Agroconsult/ R$/SC *= Preços em saca31

Soybean R$/bag (60kg/Paraná) Corn R$/bag (60kg/São Paulo)

Sugarcane R$/bag (50kg/São Paulo) Arabica Coffee R$/bag (60kg/Brazil)

Agricultural Commodities - International Prices: Recent Evolution

Soybean US$/bushel Corn US$/bushel

Sugar US$/pound Coffee US$/pound

32Source: CME Group

Barter Ratio of Agricultural Products vs. Fertilizers

33Source: Agroconsult/bg* = bags

Soybean Paraná (bag/60kg) Corn Paraná (bag/60kg)

Sugarcane São Paulo (tons) Coffee (Brazil)

33

Grain Production and Planted Area

� Expected growth of 4.6% in Brazil’s planted area in 2010/2011 marketing year

� Expected growth of 7.3% in Brazil’s grain production in 2010/11 marketing year

�2.6% increase in Brazil’s average grain yield in 2010/2011 marketing year

Source: CONAB / Agroconsult/ * Agroconsult's Projection and Company's Estimate

Grains: corn, soybeans, rice, beans, sorghum, castor beans, cotton, sunflowers, barley, rye, oats, peanuts, wheat and triticale

Fertilizers: 2011 Estimate 34

Heringer’s Ownership Breakdown

�FHER3 is one of the 100 most liquid stocks on the BOVESPA and is a component of the SMLL, ITAG, INDX, IGC,

IGCT, IMAT and IBRA stock indexes

� The free-float registered 86 foreign investors and 2,224 Brazilian investors

�FHER3 performance of -7.6% versus -23% of Bovespa – Average daily trading volume of R$ 830,172

Ownership Breakdown and Free-Float Foreign and Brazilian Investors in Free-Float

35

www.heringer.com.br/riri@heringer.com.br

Wilson Rio Mardonado

Vinicius Alves de Lima

Laís Cristina de Sá Bortolozzo

Investor RelationsPhone: +55 19 3322-2294

ri@heringer.com.br