Tereos InternacionalThird Quarter 2014/15 Results

São Paulo – February 13th, 2015

Major developments and key initiatives in Q3 2014/15

� Operational

� Sugarcane Brazil:

� YTD crushing volumes up 3% YoY to 20.2 million tonnes vs. a 5% drop in the C/S region

� Significantly better agricultural results than the average of the C/S region for the 3rd year in a row

� YTD own energy sales more than 50% higher at 851 GWh. Major cogen investments completed

� Sugarcane Indian Ocean/Africa: YTD crushing in Indian Ocean slightly up on LY. Africa showing significant recovery YoY (+32%) thanks to improved agricultural practices

� Cereals Europe: Improved profitability sequentially and YoY for Starch&Sweeteners despite soft demand in Europe, but Alcohol&Ethanol profits down in the quarter

� Cereals Brazil: Corn starch plant now operating close to nominal capacity. Q3 sales volume increased

2

� Cereals Brazil: Corn starch plant now operating close to nominal capacity. Q3 sales volume increased further compared to Q2 14/15 and doubled vs. Q3 LY

� Cereals Asia: Good operational performance at Tieling and Dongguan construction being finalized

� Financial

� Guarani secured a new 5-year financing with an expanded group of relationship banks

� Corporate

� Cereals Europe: French FCAVA potato starch cooperative joined the Tereos cooperative. This move will enable Cereals Europe to double its potato starch production by 2017, processing some 450,000 tonnes of potatoes

� Cereals Brazil: Acquisition of 32% stake of Syral Halotek from minority shareholders to now own 100% of the business

Sugar:

� Although prices have recovered in the beginning of the quarter, bigger-than-expected cane crop for C/S Brazil and BRL depreciation vs. USD has pressured prices

� In Brazil, the sugar cane crop unlikely to recover significantly and higher ethanol prices could support prices moving forward, however the overall surplus is likely to continue to weight on the market in the coming months / during the 1st half of 15/16

Starch:

� Despite good crops, wheat markets rebounded on the back of the tension between Russia/Ukraine, opening up the spread between

Q3 2014/15 Market Highlights

12

13

14

15

16

17

18

19

20

21

360

400

440

480

520

560

Dec-13 Apr-14 Jul-14 Sep-14 Dec-14

LIFFE #5 NY#11

US$/MT US$ Cts/lb

210

230

250 €/MT

tension between Russia/Ukraine, opening up the spread between corn-wheat. Devaluation of EUR relative to USD also had a bullish impact on EU wheat price

� Demand for starch and sweeteners remains soft in Europe

Ethanol:

� In Brazil, despite comfortable stock levels, ethanol price increased slightly ahead of intercrop period, likely because of recent announcements of reintroduction of CIDE tax and anhydrous blend increase.

� In Europe, FOB Rotterdam prices remain low because of increasing production and to very good beet crop and steady demand.

3Source: Bloomberg

400

450

500

550

600

0.70

0.90

1.10

1.30

1.50

1.70

1.90

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14

Brazil ESALQ Europa Rotterdam

R$/m³ €/m³

110

130

150

170

190

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14

Corn MATIF WHEAT MATIF

RevenuesHigher volumes in most segments

Net Revenues (R$ MM)

2,0152,144

2015 2144

+36

+265

(128) (44)

1 1210 127

1,0141,023

250 337

540656

Brazil

Africa/Indian Ocean

Starch & Sweeteners

Alcohol & Ethanol Europe

Holding

4

� Revenues up 9% on like-for-like basis (ie. adjusting for the end of ethanol trading on behalf of TereosGroup)

� Higher sugar volumes in all sugarcane businesses, increase in ethanol and energy sales in Brazil as well as starch and sweeteners volumes (mostly Cereals Overseas)

� But ethanol trading sales for Tereos Group no longer consolidated at TI level (-R$ 50 million), lower prices YoY for Starch & Sweeteners and ethanol in Europe, as well as lower own ethanol sales in Europe

Q3 2013/14 Currency Volume Price & Mix Others Q3 2014/15

1 1210 127

Q3 2013/14 Q3 2014/15

279 290

+20 +2 +11

(18) (4)

0

5466

60 61

142 162

Brazil

Africa/Indian Ocean

Starch & Sweeteners

Alcohol & Ethanol Europe

Holding

Adjusted EBITDAOverall profitability improvement in major segments but European A&E down in the quarter

Adjusted EBITDA (R$ MM)

279290

Q3 2013/14

Brazil Africa/IO S&S A&E Europe

Holding Q3 2014/15

0

-4

235

66

Q3 2013/14 Q3 2014/15

5

� Increased contribution from Guarani thanks to higher volumes across all products

� Together with higher profits in the Starch and Sweeteners segment, mostly due to cost base improvements

� But lower ethanol volumes & prices and lower convention wheat volume impacted A&E results in Europe

Margin 13.5%Margin 13.9%

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

Sugarcane Brazil – Production & SalesRecord crushing in Brazil at 20.2 million tonnes

Energy Sales (‘000 MWh)

� Crushing

4.94.2

3Q

13/1

4

3Q

14/1

5

-14.3% YoY

335 383

3Q

13/1

4

3Q

14/1

5

14.3% YoY

132

195

3Q

13/1

4

3Q

14/1

5

47.4% YoY

209286

3Q

13/1

4

3Q

14/1

5

36.5% YoY

6

� Crushing

� Crushing was up +3% for the whole crop at 20.2 Mt vs. -5% for the C/S region.

� Drought impacted agro-industrial productivity with 13% lower yields at 82 vs. 94 t/ha in 2013/14 but TRS increased 6%, to 142 kg/t vs. 134 kg/t LY. Overall TRS/ha in 2014/15 at 11.3 was lower by -10% YoY.

� However, investments made and agricultural practices improvements introduced in the last few years led to significantly better results than the average of the C/S region for the 3rd year in a row

� Improvement in production

� Overall production (expressed in TRS) up 5% to 2.6 Mt. Sugar Production: 1.45 Mt, -4% YoY; Ethanol Production: 645 km³, +21% YoY

� Mix still more oriented towards sugar at 58%, although down on 63% last crop on better relative attractiveness of ethanol vs. LY

� Progress on cogeneration

� Own energy sales doubled in Q3 vs. LY and up more than 50% at 851 GWh YTD

Sugarcane Brazil – FinancialsPick-up in volumes and higher energy contribution

Net Revenues (R$ MM)

Sugar Ethanol

Key Figures

In R$ MillionQ3 14/15 Q3 13/14 Change

Revenues 656 540 +21%

Gross Profit 161 92 +75%

Margin 24.5% 17.0%

EBIT 64 24 +171%

Margin 9.8% 4.4%

Adjusted EBITDA 162 142 +14%

540656

+1+46

(6)

+77(2)

Q3 Price & Volume Price & Volume Others Q3 *

* includes Cogeneration, Agricultural Products, Hedging and Ethanol Resale

7

(1) Tereos Internacional allocates tilling expenses as cost.If tilling expenses were allocated as investment, AdjustedEBITDA for Q3 14/15 would have reached R$239 million.

� Sugar: 52% of total net revenues

� Volumes up 14% to 383 k tonnes

� Average prices up 1% YoY at 894 R$/tonne

� Ethanol: 36% of total net revenues

� Volume sold up 47% to 195 k m3

� Prices down 3% YoY at 1,200 R$/m3

� Cogeneration: R$65 million vs. R$30 million, on average realized prices up more than 50% and more than doubled own electricity production

� Adjusted EBITDA: R$162 million, +14%

� Positive impact of higher sales volume in all products, together with one-off items, more than compensated for lower industrial performance in the quarter, partly as a result of the drought

� Adjusted EBITDA Margin1 for Q3 14/15 including tilling as depreciation: 36.5%

Margin 24.7% 26.2%Q3

2013/14Price &

MixVolume Price &

MixVolume Others Q3

2014/15

Sugarcane Indian Ocean/Africa – Production and Financials Higher crushing and sales volumes

Sugarcane Crushing (’000 t) Sugar sales (‘000 t)Key Figures

In R$ MillionQ3 14/15 Q3 13/14 Change

Revenues 337 250 +35%

Gross Profit 48 58 -17%

Margin 14.3% 23.2%

EBIT 11 22 -48%

Margin 3.4% 8.8%

Adjusted EBITDA 61 60 +3%

Margin 18.2% 24.0%

982 1,102

3Q

13/1

4

3Q

14/1

5

12.2% YoY

66

133

3Q

13/1

4

3Q

14/1

5

102.6% YoY

8

Revenue Breakdown by Product � Sugarcane crushing

� Indian Ocean: crushing up 3%, to 1.76 Mt

� Africa: Overall crop materially up on LY (+32%), to 622 kt, evidencing progress made on agricultural practices

� Revenues: +35% YoY

� Sharp increase in volumes sold for the region, mostly on 2 delayed shipments in Reunion Island, but lower export price to Europe

� Adjusted EBITDA: +3% YoY

� Mozambique results compensated for lower Adjusted EBITDA in Reunion Island on lower margins in sugar exports/trading

Sugar Indian Ocean 50%

Sugar Africa 13%

Trading and others 37%

Cereal Segment - Production and SalesOverall increased sales volumes, boosted by overseas operations

Cereal Grinding (‘000 t)

Starch & Sweeteners Sales (‘000 t)

Alcohol & Ethanol Sales (‘000 m3)

Co-products Sales (‘000 t)

418 464

Q3

13/1

4

Q3

14/1

5

+11% YoY

288 293

Q3

13/1

4

Q3

14/1

5

+1.7% YoY

79 72

25

Q3

13/1

4

Q3

14/1

5

-31% YoY

Own Sales Trading

828 882

Q3

13/1

4

Q3

14/1

5

+6,6% YoY

9

� Grinding in Q3 14/15: +7% to 881 k tonnes

� Starch & Sweeteners sales: +11% Ramp-up of Palmital plant in Brazil (close to nominal capacity in Q3) and positive perimeter effect of Cereals Indonesia. Volumes in Europe stable YoY

� Alcohol & Ethanol sales: -31% Major impact of termination of ethanol trading sales for Tereos Group last year and slightly lower sales of ethanol in Europe. Alcohol sales remain firm and volumes increased YoY

Q3

13/1

4

Q3

14/1

5

Q3

13/1

4

Q3

14/1

5

Own Sales Trading

Q3

13/1

4

Q3

14/1

5

Starch & Sweeteners – FinancialsLower energy costs and Performance 15 program positively impacted results

Net Revenues (R$ MM)

Key Figures

In R$ MillionQ3 14/15 Q3 13/14 Change

Revenues 1,023 1,014 +1%

Gross Profit 163 160 +2%

Margin 16.0% 15.8%

EBIT 12 3 +322%

Margin 1.2% 0.3%

Adjusted EBITDA 66 54 +21%

1014 1023

+24 +50

(59) (6)

10

� Revenues: R$1,023 million, stable YoY

� Positive impact of higher volumes in Cereals Brazil and consolidation of Cereals Indonesia

� Declining prices for S&S following cereal prices downward trend and falling European sugar prices impact on isoglucose (renegotiation took place in October)

� Adjusted EBITDA: R$66 million, up 21% YoY

� Lower energy costs and benefits of P15 efficiency program helped to improve profitability

� Negative impact from lower isoglucose prices vs. LY but overall improved margins on rawmaterials sequentially

Adjusted EBITDA 66 54 +21%

Margin 6.4% 5.4%Q3 2013/14 Currency Volume Price & Mix Others Q3 2014/15

Alcohol & Ethanol Europe – FinancialsReduced prices and volumes on lower conventional wheat volumes

Net Revenues (R$ MM)Key Figures

In R$ MillionQ3 14/15 Q3 13/14 Change

Revenues 127 210 -40%

Gross Profit (1) 22 -103%

Margin (0,5%) 10.3%

EBIT (10) 10 -204%

Margin (8.2%) 4.8%

Adjusted EBITDA 5 23 -79%

210

127

+5

(65)(13) (10)

� Revenues: R$127 million, down 40%

� Termination of trading activities for Tereos Group (-R$50 million) and lower own volumes of ethanol in Europe

� Lower prices of ethanol (-17% YoY) on soft world oil prices

� Adjusted EBITDA: R$5 million, down 79%

� Reduced proportion of raw material purchased at convention price

� Impact of lower ethanol prices on margin on raw material

11

Margin 3.8% 10.9%Q3 2013/14 Currency Volume Price & Mix Others Q3 2014/15

Capital ExpendituresContinuous reduction in capital expenditures, as expected

CAPEX (R$ MM)CAPEX Breakdown

Starch & Sweeteners

14%Alcohol & Ethanol Europe

0%

Africa/Indian Ocean13%

Brazil73%

170135

(21)

+3

(15) (2)

12

� Brazil: R$98 million

� 17% drop as expansion program fully completed

� Starch & Sweeteners: R$19 million

� Mostly related to maintenance and initiatives linked to P15 program

Q3 2013/14 Brazil Africa/IO S&S A&E Europe Q3 2014/15

Cash Flow Reconciliation & Debt Composition YoY lower Net Debt and lengthened average maturity

Cash Flow

In R$ Million9M 14/15

Adjusted EBITDA 735

Working capital variance (729)

Financial interests (158)

Others (76)

Operating Cash Flow (228)

Recurring Capex (284)

Recurring Cash Flow (512)

Debt

In R$ Million

December 31st,

2014

March 31st,

2014∆

Current 2,327 1,523 +53%

Non-current 3,164 2,734 +16%

Amortized cost (21) (23) -10%

Total Gross Debt 5,470 4,234 +29%

In € 1,611 1,413 +14%

In USD 2,632 1,890 +39%

In R$ 1,241 935 +33%

13

� Seasonal working capital for sugarcane division (on higher inventories) and negative forex impact impacted cash flows

� Net Debt lower by R$178 million than as at December 31st, 2013. Net Debt/Adjusted EBITDA: 5.0x vs. 4.9x on December 31st, 2013

� Guarani secured a 5-year financing of US$330 million at Libor + 2.30%. This, together with other refinancing done since September, has enabled TI to substantially lengthen its average debt maturity

Growth Capex (141)

Dividends paid and received

11

Others 165

Free Cash Flow (477)

Others (inc. Forex impact) (297)

Net Debt Variation (774)

In R$ 1,241 935 +33%

Other currencies 7 19 -61%

Cash and Cash Equivalent (1,180) (682) +73%

Total Net Debt 4,290 3,551 +21%

Related Parties Net Debt 51 15 +237%

Total Net Debt + Related Parties

4,341 3,566 +22%

Outlook

� Sugarcane Brazil:

� Progress in co-generation, expected to reach around 1,000 GWh sales until the end of the crop, on a full consolidation basis

� Increase in the ethanol blend ratio (from 25% to 27%) and reintroduction of CIDE tax in gasoline (R$0.22/l) should be beneficial for the sector in FY 2015/16

� Sugarcane Africa/Indian Ocean:

� Yields in Africa should be better YoY as a result of improved agricultural performance and rainy weather in the beginning of the intercrop period

� Current lower European sugar prices to impact exports

� Cereals:

Europe:

14

� Europe:

� Soft demand for starch and lower isoglucose prices (tracking lower European sugar prices) should hinder potential for sharp margin restoration in the near term

� Phasing out of wheat conventional price mechanism and expected lower ethanol prices are likely to continue impacting Alcohol & Ethanol segment’s profitability in the near-term

� Focus remain on cost base optimization with P15

� International:

� Brazil: Reduction of ICMS for corn and related products from 18% to 7% in the State of São Paulo

� Asia: Dongguan plant to start operations in Q1 15/16. Tieling product diversification plan to startramping up in Q2 15/16 and Cereals Indonesia performance improvement plan progressing

15