2. This presentation contains forward-looking statements related to the prospects of our business and
estimates for operating and financial results. Those related to growth prospects of Açúcar Guarani
S.A. are merely projections and, as such, based exclusively on the expectations of the management
concerning the future of the business. Such forward-looking statements depend substantially on
changes in market conditions, government regulations, competitive pressures, the performance of the
Brazilian and international economies and the industry and are therefore subject to change without
prior notice.
Disclaimer
4. 550
600
650
700
750
800
Q107/08
Q207/08
Q307/08
Q407/08
Q108/09
Q208/09
Q308/09
Q408/09
Q109/10
Q209/10
Q2 09/10 Ethanol Market Overview
4
Guarani’s Ethanol Average Prices
(R$/m³)
Increase of 22.4% in volume of
hydrous ethanol sold in the domestic
market compared to Q2 08/09,
sustained by the growth in the flex
fuel vehicles fleet and expected 2.6
million car sales in 2009 in Brazil
Positive trend in domestic ethanol
prices due to expected tight supply
(affected by rains) & balanced demand
(strong car sales) at the end of the
Brazilian crop
Exports lower than last year due to
a recovery in domestic market prices.
US remains the main Brazilian
destination, followed by the European
Union, India and Japan.
5. 1.2 1.1
4.8
4.4
Q2 08/09 Q2 09/10
Own 3rd Party
5.4
6.0
2.6 2.9
7.6 7.1
H1 08/09 H1 09/10
Own 3rd Party
10.010.2
Decrease in total volume crushed (-9.4%) in Q2, impacted by rainfalls. Volume down
1.7% on a half year basis
2009/10 crushing target revised to 14.5 million tons, due to negative impact of weather
in Brazil (rainfalls) and Mozambique (drought):
• Brazil: 14.1 million tons
• Mozambique: 0.4 million tons (expected 0.6 million tons)
Agricultural yield in Brazil has increased by 12.9%, while sugar content in
sugarcane has declined by 7.3% to 134 kg TRS/ton of sugarcane
Decrease of Sugarcane Crushed in Q2 09/10
5
Sugarcane Crushed (MM t)
Q2 09/10
Sugarcane Crushed (MM t)
H1 09/10
6. 57 82
282 250
H1 08/09 H1 09/10
Anhydrous Hydrous
332339
276 326
459 334
83
46
H1 08/09 H1 09/10
Refined Crystal VHP
818
706
H1 09/10: Increased Refined Sugar Production and
Slight Decrease in Ethanol Production
6
Ethanol Production (’000 m³)
H1 09/10
Sugar Production (’000 t)
H1 09/10
Increase in refined sugar production (+18.1% in H1 09/10 and stable in the second
quarter, in line with value-added strategy) to benefit from the white premium (average 90.7
US$/ton during first half 09/10)
Quarter-on-quarter, sugar production decreased by 19.0% and ethanol production by
13.8% due to poor weather conditions
Mix through September of 57% sugar and 43% ethanol to benefit from higher margins
7. 161
242
99
9632
36
Q2 08/09 Q2 09/10
Sugar Ethanol Others
292
373
260
392
179
16251
53
H1 08/09 H1 09/10
Sugar Ethanol Others
490
607
27.7% growth in net revenue in Q2 09/10,
driven mainly by Sugar (+49.8% in Q2 09/10):
• 42.1% increase in average sugar prices in
Reais to 749.1 R$/ton
• 5.4% increase in sugar sales
Ethanol revenue down 2.7% due to lower
prices (-2.0%)
Strong Increase in Net Revenue Driven by Higher
Sugar Prices in Q2 09/10
7
Net Revenue (R$ MM)
Q2 09/10
Net Revenue (R$ MM)
H1 09/10
Guarani’s Net Revenue breakdown in H1
09/10:
• Sugar: 64.6%
• Ethanol: 26.6%
• Energy: 1.5%
• Other products: 7.3%
8. 76.6
114.8
15.6%
18.9%
5,0%
7,0%
9,0%
11,0%
13,0%
15,0%
17,0%
19,0%
21,0%
0
20
40
60
80
100
120
140
160
H1 08/09 H1 09/10
Adjusted EBITDA Adjusted EBITDA Margin
59.1 64.9
20.2%
17.4%
1,0%
3,0%
5,0%
7,0%
9,0%
11,0%
13,0%
15,0%
17,0%
19,0%
21,0%
23,0%
25,0%
0
20
40
60
80
100
Q2 08/09 Q2 09/10
Adjusted EBITDA Adjusted EBITDA Margin
Rise in Adjusted EBITDA mainly due to higher sugar prices
Adjusted EBITDA margin of 18.9% versus 15.6% in H1 08/09 with Adjusted EBITDA measured by TRS sold
of R$118.2/ton, an increase of 49.7% half-on-half
Q2 09/10 Adjusted EBITDA margin at 17.4% affected by:
• Temporary effect of hedging with futures (R$9.7 million), ethanol exports of 44,800 m³ at a lower average price than
on the domestic market and quarterly effect of CONSECANA adjustment on agricultural costs (R$18.7 million)
• Higher costs of goods sold related to the lower sugar content on the raw material and increased agricultural costs
Improvement in Adjusted EBITDA: +49.9% in H1 09/10
to R$114.8 Million, +9.8% in Q2 09/10
8
Adjusted EBITDA (R$ MM)
Q2 09/10
Adjusted EBITDA (R$ MM)
H1 09/10
9. (101.8)
(0.5)
Q2 08/09 Q2 09/10
(128.4)
13.8
H1 08/09 H1 09/10
Q2 09/10: Net Loss of R$0.5 million after a R$101.8 loss last year
H1 09/10: Net Profit of R$13.8 million, compared with a net loss of R$128.4 million in H1 08/09, with a 2.3% net margin on
sales
Net profit positively affected by: a) Strong price recovery for sugar (+45.5%) and b) Net non-cash FOREX effect of R$105.8
million on H1 09/10; but negatively impacted by: a) The hedging effect related to prices of R$50.8 million on H1 09/10; and b)
Increased costs due to lower sugar content and CONSECANA cost adjustment
H1 09/10 Net profit of Brazilian operations of R$42.3 million, while operations outside of Brazil posted a net loss of
R$28.5 million due to depreciation of local currency
Net Profit of R$13.8 million in H1 09/10 (close to
breakeven in Q2 09/10) Driven by Increased Sugar
Prices and Positive Forex impact
9
Net Profit (R$ MM)
Q2 09/10
Net Profit (R$ MM)
H1 09/10
10. Foreign
Currency
70%
BRL
30%
Current
50%
Non-
Current
50%
Net debt at R$1.1 billion, virtually stable over the previous quarter, due to higher stocks and accounts
receivable, but with positive effect of real appreciation on debt denominated in foreign currency (USD)
Short-term debt net of cash and cash-equivalents totaled R$328.5 million, representing 50% of total Net
Debt, excluding intercompany loans with Tereos
Net Debt/Adjusted EBTIDA ratio at 4.0x in September, 2009, stable compared to June, 09. Excluding
intercompany loans, Net Debt/Adjusted EBITDA ratio stood at 2.5x
Stable Net Debt and Indebtedness Ratios
10
Net Debt per Term1Net Debt per Currency1
(1) Includes R$101.4 million related to SHL in Mozambique (1) Excludes intercompany loans and cash & cash equivalent
11. Selective industrial and agricultural CAPEX to:
Eliminate bottlenecks and further develop marginal capacity to lower fixed costs at São
José and Tanabi plants
Increase sugarcane crushing capacity at São José plant (from 2.6 to 3.2 million tons) and
launch a sugar factory at Tanabi plant (110,000 ton/year)
Sugarcane planting to produce the necessary raw material in coming crops to benefit from
high sugar prices
CAPEX: Focus on Sugar Production Increase, Cost
Reduction and Efficiency Programs
11
12. 100
120
140
160
180
30
40
50
60
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10E
Production/Consumption(MMton)
Inventories(MMton)
Inventories Production Consumption
Source: LMC
15
20
25
30
35
40
45
50
8
12
16
20
24
28
01-Apr-08
01-Jul-08
01-Oct-08
01-Jan-09
01-Apr-09
01-Jul-09
01-Oct-09
centsR$/lb
centsUS$/lb
cents US$/lb cents R$/lb
Q209 Q110Q109 Q309 Q409
Source: ICE
Q210
Sugar Market Outlook: Worldwide Supply & Demand
Deficit Ensure Sharp Increase of Sugar Prices
12
World Sugar BalanceRaw Sugar Prices (NY 11)
A deficit in global sugar supply is expected for the 2009/10 crop, the second consecutive year of reduced
production levels, mainly due to India’s low production (delayed monsoons)
Analysts expects this positive trend to continue for at least the next 12 to 18 months, with the
expectation of a reversion from deficit to a slight surplus in the world’s sugar balance onwards
Driven by positive fundamentals, sugar prices stood at their highest level in 28 years
Brazil, the largest beneficiary of the world sugar deficit in the 2009/10 crop, has been impacted by rains in
the Center-south region from July to September 2009
Global demand not affected by worldwide crisis
13. 0
50
100
150
200
250
300
Jan-01
Jun-01
Nov-01
Apr-02
Sep-02
Feb-03
Jul-03
Dec-03
May-04
Oct-04
Mar-05
Aug-05
Jan-06
Jun-06
Nov-06
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
'000units
Ethanol + Flex-Fuel Gas + Diesel
Source: Anfavea
Ethanol Market Outlook: Recovery in Ethanol Prices
Driven by Tight Supply
13
Vehicles Sales per Fuel
Type (Brazil)
Domestic Market
The growth of the flex-fuel fleet, which represented
more than 40% of Brazil’s light vehicles fleet at the end
of September 2009, is still boosting domestic ethanol
consumption
Forecast of reduced ethanol supply during the inter-
crop, points to strengthened domestic prices at the
beginning of the 2010/11 crop, favoring producers with
fuel storage
International Market
Better prices and margins for US producers due to
lower corn production. Enhanced prospects for EU and
Japan (new governmental target for renewable energy of
20% by 2030)
According to the EPA (Environmental Protection
Agency) ethanol from sugarcane is the only fuel that
would allow to meet US RFS-2 requirements with 44%
less greenhouse gas emissions compared to gasoline
14. 14
Outlook: Guarani Solidly Positioned to Seize
Opportunities and Benefit from the Positive Market
Outlook
Rains in Brazil and drought in Asia enhancing positive outlook for sugar prices for the second
half of 2009/10
Positive prices outlook for ethanol as of second half of 09/10 due to strong demand
Continued focus on balance sheet strengthening
Pipeline of attractive expansion projects: Sugar in the short term and Ethanol and
Cogeneration in the Mid/Long term
Strong commitment and support from Tereos, Guarani’s controlling shareholder, to seize
opportunities: Guarani is a strategic asset for Tereos
15. Thank You
phone: +55 (11) 3544-4900
e-mail: ri@aguarani.com.br
website: www.acucarguarani.com.br/ir
Jacyr S. Costa Filho
CEO
Reynaldo F. Benitez
CFO and Investor Relations Officer
Alexandre L. Menezio
Investor Relations Manager
Felipe F. Mendes
Investor Relations Analyst
Renato N. Zanetti Neto
Investor Relations Analyst
