1

Global and Brazilian Fertilizer Market

Company Overview

March, 2011

2

World Fertilizer Consumption by Nutrient

Source : Heffer, IFA, December 2010

Decrease of 7.3% in 2008/09 due to global crisis

Estimated average growth of 4.6% between 2008/09 and 2011/12

28.9 23.5 23.5 27.4 29.4

38.4 33.7 37.5 39.8 41.7

100.5 98.5

102.6 104.2 106.9

07/08 08/09 09/10 (e) 10/11 (p) 11/12 (p)

N P₂O₅ K₂O

Σ 167.8Σ 155.6

Σ 163.7 171.4

(mill

ion

s o

f to

ns

by

Nu

trie

nt

-N

PK

)

177.9

(e) estimated ; (p) preview

3

World’s Leading Fertilizer Producers - 2008

Phosphate Rock (P)

Potassium Chloride (K)

Source: IFA/ANDA

Ammonia (N)

America15.1%

Africa2.2%

Asia54.9%

Other Cont.27.8%

America22.4%

Africa23.2%

Asia45.8%

Other Cont.8.5%

America37.2% Asia

16.4%

Europe46.4%

4

World Markets and CAGR of Leading Markets, 2009

World’s Leading Fertilizer Markets (1) CAGR of Leading Markets

Note:(1) In nutrients consumption / Source: IFA/ANDA

Brazil is the 4th largest fertilizer market in the world and is growing above the global average

China 31%

India 16.2%

US 11.3%

Brazil 5.7%Indonesia

2.5%

Pakistan

2.5%

France 1.8%

Others 29%

3.4%

4.3%-0.2%

7.9%

-7.0%

-5.0%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

China India US Brazil

CA

GR

(19

90

-2

00

9)

mm

to

ns

1990 2009 CAGR

5

Evolution of the Brazilian Fertilizer Market

Source : Anda

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

10.812.2

13.8 14.613.6

16.3 17.019.1

22.8 22.8

20.2 21.0

24.6

22.4 22.4

24.526.0

(in

mil

lio

ns

of

ton

s)

6

Sustainability and Technology Applied to Fertilizer Use in Brazil

*Planted area in hectares of soybean, corn, beans (grains), paddy rice, wheat (grains), herbaceous cotton (seeds), sorghum (grains), oats (grains), barley (grains), triticale (grains), sunflower (grains), rye (grains).*Agricultural production of the following crops: soybean, corn, beans (grains), paddy rice, wheat (grains), herbaceous cotton (seeds), sorghum (grains), oats (grains), barley (grains), triticale (grains), sunflower (grains), rye (grains).

Source: Agroconsult

CAGR of planted area was 2% from 1969 to 2009, while CAGR of agricultural production was 5%

The 7% CAGR in fertilizer consumption shows this input’s contribution to environmental preservation,combined with significant gain in agricultural productivity

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

19

69

19

70

19

71

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

*PLANTED AREA/ha (CAGR 2%)

*AGRI-PRODUCTION (CAGR 5%)

FERTILIZERS (CAGR 7%)

INDEX - Harvest 69/70 = 100

7

Brazil – Estimated Area (millions of hectares)

Source: IBGE, CONAB, MAPA , GV Agro

% total area

% available

area for

agricultureAmazon Forest 350 41.1%

Legal Reserve 58 6.8%

Cities, lakes, rivers and wetlands 20 2.4%

Others 78 9.2%

Reforest 5 0.6%

Sub-total 511 60.0%

Pasture 172 20.2% 50.6%

Annual and Permanent Crops 72 8.5% 21.2%

Available Area for Agriculture 96 11.3% 28.2%

Sub-total 340 40.0% 100.0%

Total Brazil 851 100.0%

Estimated Area - millions of ha

8

Brazilian Fertilizer Production Chain

Increased integration and concentration of fertilizer producers

In 2010 Brazil produced 38% of the total consumed

Basic Raw Material

PhosphateRock (P)

Natural Gas (N)

Potassium(K)

Vale Fert.Copebras Galvani

Petrobras Vale Fert.

Fertilizer Production

Phosphorus(P)

Nitrogen(N)

Potassium (K)

HeringerVale Fert. Copebras Galvani

YaraRoulierOthers

Vale Fert.Petrobras

Vale Fert.

FinalProduct

Mixtures and Distributors

(NPK)

BungeHeringer MosaicFertipar

YaraADM

Others

9

Heringer reached 18.5% of market share in 2010

Major Players in the NPK Market

Source: Heringer’s Estimates

20101995

30%

Takenaka4%

Manah10%

IAP7%

Serrana11%

Trevo 14%

Fertibras3%

Solorico7%

Fertiza4%

6%4%

COPAS

HERINGER

BUNGE 32%

MOSAIC 11%

YARA17%

OTHERS

18.5%

6 companies: 80%

Aprox. 100 companies:

20%

10

Production Cycle in Brazil

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

CROPS

Harvest Winter Crop Harvest

Cotton

(Mato

Grosso)

Winter Crop Plantation / Coverage Crop Plantation

North East Harvest Mid-South Harvest North East

Harvest

Plantation/Coverage Plantation/Coverage

HarvestCoffee

CornWinter Crop Plantation Plantation

Winter Crop HarvestCrop Harvest

SoybeanPlantation

Harvest

SugarcaneSugarcane Summer and Spring Crops Plantation Sugarcane Summer Crop Platation

JUL AUG SEPT OCT NOV DECJAN FEB MAR APR MAY JUN

11

Brazil: Important Agribusiness Player

Brazil as a % of World Exports, 2010/11

Brazil is one of the largest producers/exporters of agricultural products, and has one of the lowest production costs worldwide

Source: USDA/ Agroconsult – in tons

Brazil as a % of World Production, 2010/11

Orange

Juice

Coffee

grain (bag)

Soybean -

grain

Sugar Cotton Corn

58%

39%

27% 24%

7% 6%

1st

1st

2nd

5th 3rd

Orange

Juice

Coffee

grain (bag)

Soybean -

grain

Sugar Cotton Corn

83%

31% 33%52%

7% 8%

1st

1st

1st

2nd

5th 3rd

12

Evolution of Brazilian Market and Heringer

3.7% Heringer Market Share 18.5%

Source: Anda

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

0.40.7 0.8

1.01.1

1.5 1.51.7

2.1 2.22.0

2.5

3.3 3.2

3.9

4.5

( in

tho

usa

nd

s o

f to

ns)

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

10.8 12.213.8 14.6 13.6

16.3 17.019.1

22.8 22.820.2 21.0

24.622.4 22.4

24.5

( in

tho

usa

nd

s o

f to

ns)

13

Fertilizers Delivered by Crop

Heringer offers solutions for many different crops, minimizing the volatility associated with local climates and other specific conditions, such as price cyclicality and pests

Source: LSPA – IBGE/CEPE AGRO e ANDA

Heringer – 2010Brazilian Market - 2010

Sugarcane20%

Others22%

Reforest6%

Coffee17%

Corn17%

Soybean18%

Sugarcane14%

Others27%

Reforest3%

Coffee6%

Corn16%

Soybean34%

14

Sales by Segment and Number of Clients - 2010

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

Individuals/Companies = 86% of volume

Sales by Segment Number of Clients

Individuals

42%

Companies

44%

Cooperatives8%

Resale

6%

2008 2009 2010

34,99745,190 44,958

Mixing Units and Production Capacity

19 units located in the main consumer markets, installed mixing capacity of 5.7 million tons

1 Sulfuric Acid and Single Super Phosphate (SSP) Unit

15

NORTH

Rosário do Catete

Camaçari

NORTHWEST

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 doManhuaçu

Catalão1.9%

12.2%

29.7%28.6%

27.6%

Total deliveries per country region - 2010

North Northwest Midwest Southeast South

16

Financial Highlights

EBITDA in 2010 was the highest in Heringer's history

2006 2007 2008 2009 2010

Volume (Million 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%

Brazilian Fertilizer Market - Seasonality

Source: Anda / Heringer 17

2007 2008 2009 2010 2011E

62%49%

63% 65% 61%

38%51%

37% 35% 39%

1st Half 2nd Half