Rapp 2011 TEREOS GB

2011 ANNUAL REPORT
for sugar, starch and alcohol
Global player
message from the chairmen
. . . . . . . . . . . . . . . 02
Who is Tereos? Presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Our markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 What does Tereos produce? Sugar beet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Sugar cane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Cereals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 How does Tereos work? human resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Research and development . . . . . . . . . . . . . . . . 40 Food safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Local commitment . . . . . . . . . . . . . . . . . . . . . . . . . . 44 What results has Tereos achieved? division results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Consolidated earnings . . . . . . . . . . . . . . . . . . . . . . 48 Sugar beet revenue. . . . . . . . . . . . . . . . . . . . . . . . . . 49 Consolidated balance sheet . . . . . . . . . . . . . . . 50 Consolidated income statement . . . . . . . . . . .51 List of companies . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Tereos, a global player

TEREOS IS A COOPERATIVE GROUP specializing in the primary processing of sugar beet, sugar cane and cereals into a full range of sugars, starch products, alcohols, bioethanol and coproducts intended for animal feed and electrical power.
12,000 cooperative
growers
In this way, Tereos is well positioned to respond to the global consolidation in its business sectors, as well as increasingly international markets and commodity price volatility. ITS ABILITY TO PLAN AHEAD, AS WELL AS ITS EXPERTISE AND MASTERY OF THE TECHNIQUES AND MARKETS INVOLVED enable Tereos to lead the way in its fields. It rallies 12,000 cooperative beet growers and 26,500 permanent and seasonal staff around a long-term vision for agriculture, developing value through natural resources, creating many outlets for agricultural production and reducing its environmental impact.
Sugar
No.
4 producer 1 3
26,500 permanent
and seasonal staff
worldwide Alcohols producer No. in Europe producer in Brazil No.
THANKS TO ITS 37 INDUSTRIAL SITES across Europe, South America and Africa, Tereos offers sustainable outlets for production from one million hectares of farmland. It has achieved a strong rate of development over the past 20 years, multiplying its total production by 50.
Starches producer No. in Europe
Tereos - 2011 Annual report /01
Message from the chairmen
Competitiveness of sugar beet underpinning Tereos development

Tereos achieved strong growth in net income, climbing to 302 million before price supplements, up 51% in relation to 2009-10. First of all, this good performance has benefited its cooperative growers, with sugar beet making a vital contribution towards this result. In Brazil, Tereos has embarked on a major sugar cane replanting program, alongside an initiative to transfer agricultural and industrial knowledge over to its subsidiary Guarani. The Group has also worked to rebalance its cereal processing activities to focus on strong growth markets. 10 years after welcoming the growers from Bghin Say within Tereos, the Group is changing its organization in order to make it simpler and stronger, while offering identical treatment for all its cooperative growers.
More specifically, the excellent performance in 2010-11 reflects the steady improvement in the competitiveness of sugar beet, on both agricultural and industrial levels, thanks to the major efforts made by Tereos over the past 10 years. The competitive gap between sugar cane and sugar beet has narrowed considerably, and is estimated at only 30% today, compared with 300% 12 years ago. In addition, Tereos France has continued to establish itself as one of the leading French exporters, with more than 60% of its sugar, alcohol and ethanol production sold for export.
growers and company possibilities for interesting outlets, in a context of rising yields and areas. However, Brazilian sugar cane still benefits from major competitive advantages, thanks to campaigns that are twice as long as in France, as well as access to free energy with bagasse. In this way, the quota system needs to be extended until 2020 to enable sugar beet to close this competitive gap.
Sugar beeT muST be able To counT on The quoTa SySTem Through To 2020
Various structural factors have contributed towards this positive result for the French sugar beet industry. Firstly, the advances made by plant breeders, enabling the significant increase seen in sugar beet yields, up from 70 tons per hectare in 2000 to over 95 tons in 2011. The beet growers must be congratulated for having invested so much in genetic improvements. Secondly, the reductions achieved in terms of energy costs, an area which Tereos will continue investing in, set against a backdrop of significant gas and oil price hikes. Lastly, the extended campaign periods, up from 80 days before the sugar regime reform to 117 days for the latest campaign, are offering the cooperative
Developing STarch inTernaTionally anD expanDing The porTfolio of raw maTerialS

Another feature of the year was the continued international development of Tereos, Europes third largest starch producer, with emerging countries seeing a particularly sustained rate of development. Indeed, the outlook for activity in the European Union has been affected by the economic crisis, whereas rapidly rising demand is supporting growth on the starch product markets in Brazil and China. Underpinned by the positions it has established on sugar and ethanol in Brazil, Tereos aims to become this countrys third largest starch producer. In this way, Tereos has acquired a majority interest in Halotek, specialized in producing starch from manioc, with this
PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE BoARd
02 / Tereos - 2011 Annual Report
4.4euros billion
in revenues
raw material added to the Groups portfolio. drawing on this interest, Tereos is building a facility at the Palmital site that will produce starch from maize, further strengthening its product range and its ability to support major customers internationally. In China, Tereos has signed a partnership agreement with the Wilmar group to develop a wheat-based starch production activity. The oil and flour market leader in China, Wilmar is also the worlds eighth largest sugar producer. Tereos will be providing its expertise on both industrial and quality processes. Considering the size of the Chinese starch market and its shift over to wheat, the Group expects its activity to grow to similar levels to those reached in Europe in time. In France, at the end of 2011, Tereos also wrapped up the acquisition of a majority stake in Haussimonts potato starch unit. Following this operation, it has been able to add potatoes to its portfolio of raw materials. Potato starch production will not only be developed, but also focused on the specialty markets.
The quota system needs to be extended until 2020 to enable sugar beet to close the competitive gap in relation to sugar cane. philippe Duval
offer the best possible remuneration for contributions by its cereal growing partners. In this way, it will gradually align the prices for wheat delivered to Lillebonne with market prices. In line with this objective, the Group has been working to diversify Tereos Benps activities in Lillebonne, evolving towards food activities. It will gradually be converted into a starch mill. From 2012, this site will be producing gluten extracted upstream in the process. Intended for the flour milling industry and bakery trade, this gluten is more valuable than that contained in stillage for animal feed. A glucose production unit will be added in 2013. From then on, production trade-offs will depend on the respective prices for ethanol and cereals, as well as the level of progress made with secondgeneration biofuel projects and the positive outlook for sugar beet.
effecTively Developing value Through wheaT proDucTion

In the sugar and ethanol sector, the year was marked by a favorable market environment. However, the historically high prices reached for wheat are continuing to widen the gap in relation to wheat ethanol. As a cooperative group, Tereos has a duty to
THIERRY LECOMTE CHAIRMAn oF THE SUPERVISoRy BoARd
752euros million
in EBITDA
inveSTing To improve brazilian proDucTion

The 2011 campaign proved to be difficult in Brazil, marked by rising agricultural and industrial costs. yields contracted as a result of the credit crisis, which forced growers, due to a lack of financing, to slow down the rate at which they were renewing their plantations. They were also affected by adverse weather conditions. Major efforts were made to replant the sugar cane in 2011, with 20% of the area replanted. Alongside this, Tereos is ramping up the transfer of agricultural and industrial knowledge gained on sugar beet in France and sugar cane in Runion. Indeed, its Runion-based subsidiary has a strong level of expertise for research into new cane varieties. In France, sugar beet cultivation is able to benefit from extensive experience with mechanization, which only started up in Brazil in the 2000s. on an industrial level, with sugar cane becoming expensive, Tereos Guaranis priority will be to reduce sugar loss, improve productivity and effectively capitalize on its energy potential with cogeneration.
46,000 to 67,000 tons, with a sugar cane yield of 73 tons per hectare. In Tanzania, where Tereos owns 30% of Tanganyika Plantation Company, an outstanding performance was achieved, with a yield of 111 tons of cane per hectare.
STrong growTh in financial reSulTS

The financial results for the year ended 30 September 2011 show a strong rate of growth. net income totaled 302 million euros before additional payments and 237 million euros after additional payments. The additional payments and dividends paid to cooperative growers represent a combined total of 99 million euros. Adjusted EBITdA came to 752 million euros, with 4.4 billion euros in revenues. A key raw material for Tereos, sugar beet was the leading contributor to revenues, EBITdA and net income. In 2012, a record campaign in terms of agricultural performances and a positive commercial context are expected to pave the way for a further improvement in the Groups financial results for the year ending 30 September 2012.
Adding value to our cooperative growers agricultural production is one of the primary missions of our cooperative group. Thierry lecomte
cooperaTive STaTuS, a viTal aSSeT

In this context of growth and good results, Tereos is further strengthening its cooperative structure, which represents a vital asset for its success. To continue building on its commitment to fairness and solidarity, the upstream organization of the various cooperatives is being streamlined and the conditions for each one of the 12,000 cooperative growers are now harmonized, regardless of their cooperative or their history within the Tereos Group. In an increasingly competitive and globalized environment, Tereos investment choices will continue to focus on two major strategic objectives: safeguarding the profitability of each business line by seeking out growth where it can be found, while securing sustainable and profitable outlets for its cooperative growers and grain partners.
confirming iTS poSiTionS in The inDian ocean anD africa

In Runion, the 2011 campaign maintained the good levels recorded in 2010, producing 206,000 tons. This performance was made possible thanks to the creation of new sugar cane varieties and improved yields. In addition, special high-margin sugars (demerara and brown sugar) are making significant contributions towards earnings: today, they make up almost 50% of Tereos production in Runion. In Mozambique, through its subsidiary Companhia de Sena, Tereos is confirming its position as a responsible economic player. The past campaign was good thanks to the favorable weather conditions recorded and sugar production increased by 45%, climbing from
PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE BoARd
THIERRY LECOMTE CHAIRMAn oF THE SUPERVISoRy BoARd
Who is Tereos?
TEREoS IS A CooPERATIVE GRoUP SPECIALIzInG In THE PRIMARy PRoCESSInG oF AGRICULTURAL RAW MATERIALS.
Tereos is an agroindustrial group present in Europe, Brazil and the Indian ocean. owned by 12,000 French cooperative sugar beet growers, Tereos processes one million hectares of sugar beet, sugar cane, cereals, potatoes and manioc into sugar, starches, alcohol / ethanol, electricity and coproducts at 37 industrial sites thanks to the work accomplished by its 26,500 permanent and seasonal staff.
Presence
on three continents
37
Latin America
industrial sites
Brazil
Andrade l l l l Cruz Alta l l l l l Mandu l l l Palmital l So Jos l l l Severnia l l Tanabi l l Vertente l l l
Indian Ocean
Runion
Bois-Rouge l l Eurocanne l Le Gol l l
Mozambique
Marromeu l l
1 million
hectares of agricultural area processed
3.6 million
TONS Of SuGAR
United Kingdom
Selby l
France
Artenay l l l Attin l Boiry l Bucy l l Chevrires l Connantre l Escauduvres l Haussimont l Lillebonne l Lillers l l Marckolsheim l Morains l Nantes l Nesle l l Origny l l l Thumeries l
Belgium
Aalst l l
Spain
Olmedo l Saragossa l
Europe
Italy
Saluzzo l l
Czech Republic
Cesk Mezirici l Chrudim l Dobrovice l l Melnik l
Sugar refinery Distillery Packaging Refining Starch unit Electricity
1.9 million
TONS Of STARCH PRODuCTS
1.7 million
M3 Of ALCOHOL AND BIOETHANOL
535 GWh
Of ELECTRICITy
Governance
Modern vision of cooperation

The Tereos Groups primary mission is to add value to its cooperative growers agricultural production. It is contributing toward this through its international development, in line with the trend for a globalization of the markets and consolidation of the industry.
Tereos groups together 12,000 French cooperative sugar beet growers. Created through successive mergers between cooperatives, its main goal from the outset has been to ensure a sustainable outlet for the sugar beet produced by its cooperative growers, adding value as effectively as possible, in order to ensure the long-term viability of their operations. To achieve this, in addition to the sugar quotas in France, Tereos offers them opportunities to sign contracts for other outletsalcohol, ethanol and sugars for non-food industrial usesas well as for export. Since the 1990s, Tereos has been investing in new countries and new business lines with two main goals: on the one hand, securing the outlets for sugar beet over the long term and optimizing its value, and on the other hand, managing production contingencies more effectively by diversifying the areas from which it sources its raw materials.
accompanying The SecTorS conSoliDaTion

In this way, the Group has moved into Eastern Europe with the Czech Republic, South America with Brazil, and the African continent with Runion and Mozambique. Therefore, it has given itself the means to help drive the consolidation of the sugar-alcohol sector worldwide. Alongside this, Tereos has diversified its business lines by investing in the starch sector: initially in France and Europe, then in Brazil in 2011, with China to follow shortly. once again, Tereos is looking to be a significant player for the processing of agricultural raw materials and benefit from growth in emerging countries.
moDern governance STrucTure

Tereos, a union of agricultural cooperatives, is organized around a Supervisory Board and Executive Board. The Supervisory Board represents all the cooperatives that make up Tereos, validating the Groups strategy. The Executive Board oversees activities, sets out the strategies and ensures their implementation once they have been validated by the Supervisory Board. This separation of roles ensures operational efficiency, as well as effective representation for the various cooperative growers. The Supervisory Board meets every month, while its office comes together every two weeks. The directors from all the cooperatives associated with Tereos meet twice a year.
upSTream organizaTion STreamlineD

Created through a number of business combinations and mergers, the cooperative group Tereos had 12 cooperatives organized in different unions up until this year. Following the various mergers between cooperatives, the Groups upstream structure has been simplified. This has been achieved while upholding the values of fairness and solidarity in agricultural cooperation.
Supervisory Board
FRoM LEFT To RIGHT
l Dominique Ferry, SBP cooperative vice-chairman l Philippe Descamps, Abbeville cooperative chairman l Christophe Dedours, Marconnelle cooperative chairman l Jean-Charles Lefebvre, SDA cooperative director l Bertrand Magnien, SBP cooperative chairman l Jacques Rousseau, Meaux Region cooperative chairman l Denis Lecart, Marne and Aube cooperative chairman, Vice-chairman l Yves Chenu, Artenay cooperative chairman l Dominique Trpant, SDA cooperative director l Gilles Boll, Chevrires cooperative chairman l Marc Turpin, Boiry cooperative chairman l Xavier Laude, Escauduvres cooperative chairman l Grard Grondel, Pont dArdres cooperative chairman l Guillaume Perdereau, Artenay cooperative director l Franois Ringo, SDHf cooperative director
of the Supervisory Board l Didier Beauvais, SDA cooperative director l Grard Clay, SDHf cooperative chairman, Vice-chairman of the Supervisory Board l Franois Leroux, SDA cooperative director l Thierry Lecomte, SDA cooperative chairman, Chairman of the Supervisory Board
Le Directoire
oFFICE
Executive Board
FRoM LEFT To RIGHT Pierre-Christophe Duprat Director of Tereos Crales Etienne Van Dyck Company Secretary Philippe Duval Chairman of the Executive Board Alexis Duval International and financial Director Yves Belegaud Director of Tereos france
Group organized around its raw materials

12,000
COOPERATIVE GROWERS
Structure
Tereos Internacional
Sugar beet processing
Cereal processing
Sugar cane processing
Tereos france
Tereos TTD
Tereos Benp
Tereos DVO
Tereos Syral
Tereos Guarani
Tereos Sena
Tereos Ocan Indien
The Tereos Group is organized in three divisions around the processing of the main raw materials: sugar beet, sugar cane and cereals. Sugar beet processing covers the activities of Tereos France and Tereos TTd, focused on transforming sugar beet into sugar and alcohols in Europe. Sugar cane processing groups together the activities to produce and transform sugar cane into sugar, ethanol and electricity in Brazil (Tereos Guarani), Mozambique (Companhia de Sena), Runion and Tanzania (Tereos ocan Indien). Lastly, cereal processing encompasses the activities of Tereos Syral, Tereos Benp and Tereos dVo. In 2011, manioc and potato processing were added to this divisions activities, after Tereos Syral acquired a manioc starch unit in Palmital, in the south of
Brazils So Paulo State, in addition to the Haussimont potato starch unit in Frances Marne region. The activities of Tereos France, the Groups historical core, are owned directly by the Tereos cooperative union, which groups together 12,000 cooperative beet growers. Tereos Internacional is the holding company for grain and sugar cane processing activities, listed on the So Paulo stock exchange. Its majority shareholders are Tereos and the cooperative cereal partners, historically involved in cereal processing: Agrial, Axral, Cap Seine, Cohesis, Comptoir Agricole de Hochfelden, noriap, Thmis Agro-Industrie (union between Agora, Axion, Cerena and Valfrance) and Unal.
Our markets
Sugar
WoRLd SUGAR SToCkS REPRESEnT onLy 35% oF GLoBAL ConSUMPTIon.
Sustained prices
2011 confirmed the trend that began in 2010, with the sugar market remaining tense and stocks down to all-time lows in Europe and around the world.
In summer 2010, the global sugar balance showed a 5 million ton shortfall for the second year running, following a 10 million ton shortfall in 2008-09. Production has been hit by the flooding in Australia, the drought in South Africa and, above all, the frost and drought in Brazil, while consumption has continued to grow steadily by 2 to 3% per year, equivalent to around 3 million tons. In this environment, the futures markets recorded a further increase, while physical markets worldwide surged to over 1,000 dollars per ton, except for in Europe. recorded in spring, when the first Brazilian sugars are released. However, this downturn did not last long on account of the low level of Brazilian sugar cane yields, down 14% in relation to 2010. Hit by the impacts of the drought and frost, combined with the ageing of the sugar cane plants, Brazils CenterSouth region produced 31 million tons of sugar in 2011, compared with 33.5 million tons in 2010, giving 2.5 million tons less for export. Global prices then climbed, moving close to 900 dollars per ton, before stabilizing at around 600 dollars per ton at the end of 2011 thanks to a record-breaking sugar campaign in Europe. World stocks are still limited and global production is stagnating, whereas sugar requirements are continuing to grow. In light of this, sugar prices are expected to be maintained over the long term.
limiTeD global STockS

Worldwide, the 2010-11 campaign resulted in only a slight surplus of approximately 900,000 tons, falling short of the level needed to build global stocks back up again. Indeed, global stocks now represent only 35% of consumption, which is too low to cope with any production contingencies. In this way, global prices held firm following the traditional downturn
in europe, DemanD iS noT being covereD by quoTaS anD imporTS

In 2010-11, Europe embarked on its first postreform campaign with a fixed reference price, significantly lower quotas and a dependency once again on preferential sugars for 25% of its consumption. once virtually all of the European quota sugars had been used, sugar resources quickly proved insufficient to cover the markets requirements, while imported sugars were not attracted by a European market offering lower prices. The European authorities took exceptional measures, reclassifying 500,000 tons of outof-quota sugar and assigning 700,000 tons for exceptional import contingents with zero or reduced duties. despite this, at the end of September 2011, Europes stocks represented just over 1.6 million tons. At the end of 2011, the European Commission once again decided to reclassify 400,000 tons of out-of-quota sugar and import additional quantities. These corrective measures were barely enough to ensure that end-of-campaign stocks came to 2 million tons. At the same time, the 2011-12 campaign has proven to be exceptional, and exports look set to benefit from licenses for over 2 million tons.
whiTe Sugar priceS (lonDon, $/Ton)
900.00 850.00 800.00 750.00 700.00 650.00 600.00 550.00 500.00 02/11 08/11 07/11 09/11 10/11 11/11 12/10 01/11 04/11 05/11 06/11 12/11 10/10 01/12 11/10 03/11
Source: Liffe
Our markets
Alcoholethanol
EURoPEAn BIoETHAnoL ConSUMPTIon IS ExPECTEd To doUBLE By 2020. dEMAnd FoR TRAdITIonAL ALCoHoLS REMAInS STRonG.
European ethanol prices undermined by American exports

The downturn in Brazilian exports and production and the increase in rates for the incorporation of bioethanol into fuels across Europe opened the door for American exports.
Global bioethanol consumption has continued to grow, but with differences between the various regional environments. In Brazil, the decline in production led to the government temporarily reducing the rates for incorporating ethanol into fuel from 25 to 20%. In the US, saturated production units and high petrol prices paved the way for a sustained rate of consumption, exceeding the American governments regulatory targets. Lastly, in Europe, following the increase in the levels included in fuel, ethanol consumption climbed 8% in relation to 2010. Globally, all uses combined, alcohol consumption increased by 2.1% to 105 million cubic meters. The use of ethanol for fuel saw the strongest rate of growth, up 8% to 89 million cubic meters. In terms of production, the key event in 2011 was the downturn in ethanol production in Brazil, dropping 5.5 million cubic meters to 22 million cubic meters, primarily due to the poor weather conditions that affected the sugar cane harvest. In this way, the increase in north American production by 2 million cubic meters to 52 million cubic meters failed to make up for this decline. them. According to the plans drawn up by the various Member States, consumption forecasts come out at around 13 million cubic meters by 2020, more than double the level of demand from 2011. The past year was marked by imports from Brazil being replaced by E90 from the US (blend of 90% ethanol and 10% petrol), which benefits from export subsidies as lower taxes, as well as lower import duties than ethanol. These low-price imports penalized all European production, restricting the possibilities for passing on higher cereal prices. In response to these large-scale imports, the European customs committee is considering reclassifying these blends so that they are subject to the same customs duties as ethanol. In addition, in november 2011, the European association of alcohol producers (ePURE) called on the European Commission to investigate the trade practices for American exports, considered to be unfair.
conTinueD progreSS on The european markeT

European bioethanol consumption reached almost 6 million cubic meters, with Germany, France, the Uk, Sweden and Spain alone making up more than half of the European market. While certain countries are ahead of their targets, others are deferring or lowering
european markeT for TraDiTional alcoholS

The traditional alcohol market is more consolidated and less turbulent than the market for ethanol used for fuel. Indeed, the alcohols used in drinks, cosmetics, pharmaceutical products or other industrial applications are driven by the quality and reliability of supplies. In the 2010-11 campaign, Europes traditional alcohol production operated at full capacity, thanks to the low level of synthetic alcohol production, affected by high oil prices and the imports made possible by a tight global ethanol balance and weak euro. For its part, demand continued to be sustained by sectors left relatively unaffected by the economic slowdown. Lastly, prices surged to record highs on the back of rising cereal and energy prices. The outlook for the next year is still good, but the expected contraction in industrial demand must be taken into consideration, along with falling commodity prices.
eThanol anD peTrol priceS (e/m3) petrol

720 670 620 570 520 470 420 370 August 08 oct. 08 dec. 08 Feb. 09 Apr. 09 June 09 Aug. 09 oct. 09 dec. 09 Feb. 10 Apr. 10 June 10 Aug. 10 oct. 10 dec. 10 Feb. 11 Apr. 11 June 11 Aug. 11 oct. 11 320
ethanol
2008/09 2009/10 2010/11
720 670 620 570 520 470 420 370 320 270 220 170
Source: kingsman
Our markets
Starch products
THE PRoTEInS ExTRACTEd FRoM WHEAT ARE HIGHLy VALUEd FoR HUMAn And AnIMAL Food. THE PHARMACEUTICAL IndUSTRy IS WEATHERInG THE EConoMIC EnVIRonMEnT WELL.
Growth in emerging countries

Growth on the European starch market has been held back by the crisis. Wheat starch is becoming increasingly competitive again worldwide compared with its maize, potato and manioc-based rivals.
In Europe, the beginning of 2011 followed on from the previous year, buoyed by strong demand and growth in the market for starch products. In April, the doubts surrounding world growth led to a slowdown in demand, initially affecting starches for the paper and cardboard sector. The traditionally resilient food and pharmaceutical sectors continued to deliver on their promises throughout the year. High cereal prices, combined with energy cost inflation, resulted in a significant increase in prices for starch products. kets, with prices trending down from April 2011, had immediate impacts on the cattle feed markets and therefore coproduct prices. These two factors will also drive down prices for starch products in 2012.
china becomeS The leaDing markeT for STarch proDucTS

The Asian market for starch products is booming. Growing at a rate of 10 to 15% per year, Asia accounts for almost 50% of the global market. This progress reflects a societal shift, with growing numbers of people living in urban environments and the resulting changes in dietary habits. More specifically, China has just overtaken the US to become the worlds number one producer of starch products. China is able to count on a wide range of know-how, and imports are currently limited to specialty products, for which specific technologies, innovations and quality are required by customers.
riSing priceS
Similarly, the high level of potato starch prices, reflecting the poor European harvest, and the limited availability of manioc starch as a replacement also contributed towards the increase for maize and wheat starches. Lastly, high sugar prices in Europe, as forecast for Fy 2011-12, represented a supporting factor for isoglucose and glucose prices. on the other hand, the combination of macroeconomic factors and fundamentals for the cereal mar-
european wheaT repreSenTS The moST compeTiTive baSe for STarch proDucTS
Structurally, wheat-based starch products are more competitive than their rivals based on maize or potato thanks to the coproduct revenues they offer, despite wheat prices being higher. Indeed, the proteins extracted as vital wheat gluten or processed wheat gluten are highly valued by the food industries, for both animals (cattle, sheep, fish farming) and people (bakery trade, milling industry). once again, since the second quarter of 2011, the cost of wheat starch net of coproducts is not only more competitive than the cost of starch derived from European maize, but it is also less expensive than starch based on American maize or Thai manioc.
european STarch proDucT markeT (000 TonS)

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2, 000 1, 000 0 2006/07 2007/08 2008/09 2009/10 2010/11
1,065 3,555
1,080 3,330
1,020 3,200
1,100 3,255
1,120 3,320
3,990
3,890
3,600
3,980
3,960
l Starches
l liquid sweeteners
l Specialties
Source: European Starch Industry Association (AAF)
What does Tereos produce?

AT ITS 37 IndUSTRIAL SITES, TEREoS PRodUCES SUGARS, ALCoHoLS, BIoETHAnoL, STARCH PRodUCTS, CoPRodUCTS And ELECTRICAL EnERGy.
Tereos is the worlds fourth largest sugar producer, Europes third largest starch producer, the leading alcohol producer in Europe and number three in Brazil.
14 / Tereos - 2011 Annual report
Wide range of products

Tereos produces sugar, starches, traditional alcohols, bioethanol, electricity and a wide range of coproducts, which it sells primarily to industrial customers. for household sugars, Tereos has a number of well-known consumer brands: Bghin Say, La Perruche and Blonvilliers in france, Sucreries de Bourbon in Runion, TTD in the Czech Republic and Guarani in Brazil.
five raw materials

The Groups three historical raw materials are sugar beet, sugar cane and cereals. In 2011, two new raw materials were added for starch production activities: manioc and potatoes.
19.3 million
TONS Of SuGAR BEET TONS Of SuGAR CANE
TONS Of POTATOES
300,000 100,000
18.9 million
TONS Of MANIOC
3.7 million
TONS Of CEREALS (WHEAT AND MAIzE)
Sugar beet
2,900 staff 17industrial sites 19.of sugar 3 million tons

beet processed
Sugar beet
Manufacturing process
FILTRATIon UnIT.
Washing Slicing Diffusion
Refining Evaporation Crystallization Pulps Centrifugation Drying
Scums water Low-purity syrup Dilution
Crystallized sugar
Vinasse Distillation Dehydration
Fermentation
Ye ast s
Rectification Dehydration Bioethanol Traditional alcohols Absolute alcohol
Tereos france
SUGAR BEET FIELd.
Agricultural and industrial competitiveness

Good yields, quality sugar beet and effective control over sugar loss throughout the production chain are improving the profitability of industrial facilities. From a commercial perspective, the European market is being buoyed by high sugar prices.
The 2011-12 sugar beet campaign ended with a record yield of 95.5 tons per hectare at 16% sugar content. This improved on the performance achieved in 2009-10 - 94 tons per hectare and points to a good level of sugar beet potential for future campaigns. From an agronomical perspective, the 2011-12 campaign was marked by good weather conditions. Seeding took place early, with 50% of the area sown by the 18th March, compared with an average of the 27th March for the past five years. Following good quality emergence levels, the spring drought led to some concerns, but the mild weather enabled a steady rate of growth and deep rooting in the soil. The summers rains, without any very hot conditions, ensured a regular pace of development. Septembers sunny weather then paved the way for the sugar content to rise. In the end, the sugar content averaged out at 18.6%. during the 2011-12 campaign, Tereos France purchased 16.6 million tons of sugar beet. In total, the area sown in 2011 increased by 1% to 173,700 hectares, representing 45% of the sugar beet area in France.
7.6% DirT Tare

Low autumn rainfall limited the level of dirt attached to the sugar beet during picking. These good conditions, combined with better management of picking by the cooperative growers and 87% of the sugar beet being cleaned, made it possible to obtain a dirt tare rate of 7.6%, compared with an average of 10% for the past five years. This achievement has a range of benefits: less dirt transported, meaning fewer trucks on the roads, and less dirt to be eliminated and managed in the sugar refineries, improving the economic and environmental management of this activity.
local economic player

Tereos France showcases its strong presence within the regions by communicating on the major economic contribution made by the beet-sugar-ethanol sector. As each year, the mayors of the various districts concerned by sugar beet growing were invited to information meetings at the sugar refineries. In addition, a poster campaign was rolled out on the beet trucks. The slogan Beet, the sugar for our regions (Betteraves, le sucre de nos rgions) shows that the growing, transportation and processing of beet into sugar benefits the regional economy. Lastly, during the sugar campaign, the sugar refineries welcome large numbers of groups and explain how the beet is transformed into sugar.
Sugar beeT yielD (TonS/hecTare)

94 83.4 85.5 79.3 81 84.2 95.5
DirT Tare on neT 1 (%)
polarizable Sugar TranSporTeD per Truck (TonS) 5.1

5 4.6 4.6 4.3 4.7 4.7
16.6 10 11.3 9.8 10 11 10.5 8 10.4 7.6
76.5 75.1
80.9
4.5 4.3
4.2
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
11/12
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
117 days campaign

ConTRoL RooM. QUALITy LABoRAToRy.
The benefits of the agronomy departments work over the past three years on sugar beet storage in silos are starting to be seen. The mulching technique is being widely developed, with 350,000 tons of sugar beet protected using straw in the latest campaign. Straw mulching is just as effective as covering with tarpaulin, but it saves having to handle the tarpaulin sheets. The straw is removed during the cleaning phase and remains in the field as a source of organic matter.
opTimizeD proceSSeS
The excellent quality of the sugar beet, combined with the technical teams resourcefulness, has made it possible to significantly reduce limestone consumption levels, generating further savings. once again, sugar losses and energy consumption have been effectively kept under control thanks to the various facilities running smoothly, as well as thorough supervision. The distilleries market has continued to grow, with the alcohol production capacity further strengthened thanks to the new vinasse concentration unit deployed in Artenay. The Attin sugar refinery is continuing to develop a new production unit for Btador and processed sugar beet juice, in partnership with the Lesaffre, Maguin et Ecopsi group.
long campaign
In view of the exceptional harvest, the 2011-12 campaign began on 10 September in most of the facilities and ended around 7 January, giving an average of 117 days. With 300,000 tons of polarizable sugar per facility on average, Tereos France is positioned at a good level for Europe, proving its ability to be competitive. The tonnage of sugar beet processed came to over 131,000 tons per day, representing 14,560 tons per facility, with an equipment failure rate of 1.2%.
ambiTiouS inveSTmenT plan

Thanks to the good results achieved, an ambitious investment plan has been mapped out for around 80 million euros over five years to continue making the necessary reductions in energy consumption
levels and keep the rising costs for buying gas under control. Alongside the regular investments focused on renewals, it is being rolled out since the beginning of 2012. The Bucy sugar refinery, while reducing its gas consumption, is going to increase its capacity by 1,000 tons per day. The Connantre sugar refinery will benefit from the highest level of investments, with new gas boilers and significant reductions in energy consumption. The new boiler for the origny sugar plant will be operational in spring 2012. In terms of operations, the origny site is bringing the vinasse-based betaine extraction unit online at the beginning of 2012 for dupont-danisco. Lastly, the sugar packaging activity (household and industrial) is operating at a sustained rate. Productivity levels are steadily rising and quality improving, ensuring that the various customers are satisfied.
mulTiple ouTleTS unDer conTracT

In addition to quota sugar production, the cooperative partners grow sugar beet for producing alcohol and ethanol, as well as other industrial uses. These various outlets make it possible to ensure a high level of sugar beet production. It is vital that these contracts, representing 42% of Tereos Frances global sugar beet production in 2011, are maintained.
average campaign lengTh (DayS)

107 95 84 81 75 81 81 86 110
117
average Daily Tonnage per faciliTy (TonS/Day)

14,800 14,350 14,560 14,140 13,300 13,300
12,600
12,400
13,000 12,700
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
1,668,000
tons of sugar sold
CHECkInG FACILITIES.
SUGAR CEnTRIFUGATIon.
For the 2010-11 campaign, Tereos Frances sugar quota was set at 1,208,000 tons. An interesting additional resource was contributed by the olmedo refinery in Spain. With its first full year of operations, this facility refined 110,000 tons of raw sugar from Runion, Brazil and, for the first time, Mozambique. While out-of-quota sugar production did not reach the exceptional levels seen in 2009-10, the quantities produced made it possible to benefit from the reclassification measures approved by the European Commission to cope with the import shortfall, increasing the level of quota resources by around 130,000 tons.
Sales to the fermentation industry are stable thanks to various long-term partnerships, while sales to the pharmaceutical industry have continued to develop at a sustained rate. on this market, Tereos France is establishing itself as number one in France and confirming its development across Europe and in relation to third-party countries. For household sugars, total sales remained close to the previous years level. Indeed, France has seen a sustained rate of consumption for the past two years and Tereos France is building its positions again in Europe thanks to the new market environment. In France, in the specialized mass retail/hard discount sector, Tereos France has maintained its position with a market share of over 26%, despite the growing importance of retailer brands, which now represent over 50%. In the national brand sector, Bghin Say accounts for 37% of the market. Lastly, on the specialty segment, which is continuing to grow, up by around 3%, Tereos France has
a market share of over 40% with its La Perruche, Blonvilliers, Ligne and flavored sugars ranges.
poSiTive markeT conTexT

Globally, sales prices have remained stable for contracts renewed since october 2010. However, as soon as the shortage became apparent, prices rose for all sales relating to tonnage handled on a spot basis or reclassified for industry. As a result, the weighted average price is higher. The new situation on the industrial market has allowed mass retail prices to be readjusted. In terms of out-of-quota sugars for export and the chemical industry, prices have followed the positive trend set by the global market. Thanks to excellent sugar beet yields, total sugar resources were high in 2011-12. The quota, before reclassification measures, was stable, but exports came in close to the record levels seen in 2009.
preSence on The fermenTaTion anD pharmaceuTical markeTS

In 2010-11, Tereos France confirmed its status as a leading partner for its customers and consolidated its positions in France and its four main neighboring countries: the Uk, Italy, Spain and Germany. The reclassification made it possible to increase sales to the European agrifood industry.
innovaTion anD viSibiliTy for The bghin Say branD

The communications and innovation policy was maintained in 2011 to continue promoting the Bghin Say brand. In March 2011, the first low-calorie sugar with stevia extracts was launched under the Ligne brand. This innovation has been a resounding success on the segment for sweeteners with stevia extracts, and the Ligne Stvia range will be extended in 2012. Following the success achieved in 2010, the
Sugar SaleS (000 TonS)

2,036 1,399 1,377 1,503 1,622 1,634 1,742 1,668
Bghin Say brand renewed its partnership with the MasterChef program on the French television channel TF1 in 2011. This year, new audience records were set, attracting over six million viewers for each show.
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
l out-of-quota l in-quota
261,000
tons of dehydrated pulp sold
CHAnGInG BLAdES FoR SLICInG SUGAR BEET.
TAkInG SAMPLES FoR QUALITy AnALySIS.
Sugar-alcohol arbiTrage
In a buoyant alcohol market environment, 265,000 cubic meters of traditional alcohol were sold, with this volume down slightly due to tradeoffs in favor of sugar. High-purity alcohols are sought after by increasingly demanding customers, particularly for spirits, retail and cosmetics. outside of France, Tereos France has confirmed its presence on the main markets, such as Germany, Italy and the Uk, ensuring a good level of stability for its outlets. during the year, prices adjusted to the balance between supply and demand, rising throughout the year. Faced with a sustained level of demand for sugar, sugar beet bioethanol production slowed down. As a result, sales fell this year, while prices were hit by the market upheavals linked to American exports. The highly flexible industrial facilities made it possible to make relevant adjustments.
pulp priceS baSeD on raw maTerialS

Thanks to effectively managed quality and logistics services, pressed pulp still represents an interesting product for breeders. France and Belgium both saw a good level of demand during the 2010-11 campaign. In this way, the volumes sold remained stable at 122,000 tons. Pressed pulp is now based on the prices for a basket of commodities, making it possible to ensure that prices are in line with the markets for benchmark products, such as cereals. on dehydrated pulp, the volumes sold in 2010-11 were down 9% to 261,000 tons, due to lower availability than in the previous campaign.
DevelopmenT of STevia exTracT SaleS

The Tereos PureCircle Solutions joint venture is rolling out its business in Europe in the exclusive countries: Belgium, the Czech Republic, France, Italy, Portugal and Spain. Following the approval obtained in december 2011 to sell stevia extracts across Europe, Tereos PureCircle Solutions launched a patented blend SteviaSucres that offers genuine benefits in terms of taste and ease-of-use for industrial customers.
acquiSiTion of Three Sica pulp preSSing anD DehyDraTion uniTS

during the year, the acquisition of the Boiry, Escauduvres and Chevrires SICA pulp units was finalized. From the 2012-13 campaign on, this operation will enable Tereos France to manage the production and sale of virtually all the pulp produced by sugar beet from its cooperative growers.
preSSeD pulp SaleS (000 TonS Dm)

119 88.4 120 122
DehyDraTeD pulp SaleS (000 TonS)

316 269 183 182 249 286
110
261
160 50 48 50
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
Czech Republic
Tereos TTD
SUGAR BEET yARd AT THE CESk MEzIRICI SUGAR REFInERy.
MELnIk SUGAR PACkAGInG UnIT.
Growing business
For Tereos TTd, the 2011-12 campaign saw abundant production levels thanks to an increase in sugar beet areas, combined with record yields and a campaign period that was extended by over three weeks.
the previous year. These excellent results reflect the early sowing, two weeks earlier than normal, and the very good weather conditions that followed. The sugar content came out slightly lower than the average for 2010-11 at 17.8%, but the sugar beet delivered was clean, with a total net beet tare (dirt + tops) of 13.8%, made possible by the ideal harvesting conditions. For 2012, the target is to sow 35,000 hectares. ing the campaign. This site is expected to operate for 340 days and produce 88,000 cubic meters of raw alcohol in 2011-12 by transforming low-purity syrups between the campaign periods. Research is underway looking into the construction of a vinasse methanation unit, with development planned for 2012-13. The biogas produced would enable the distillery to become energy independent.
128-Day campaign
Combined, the two facilities processed 20,700 tons per day, compared with 19,700 tons per day in 201011. The campaign lasted 128 days, up from 101 previously. The 2,650,000 tons of sugar beet received at the facilities were transformed into 303,000 tons of sugar, 44,000 cubic meters of raw alcohol, 96,000 tons of pellets and 135,000 tons of lowpurity syrups. Various investments made it possible to take energy consumption levels at the dobrovice sugar refinery down from 17.5 to 16.6 kg of fuel oil per ton of sugar beet processed. The dobrovice distillery also set a new record, producing 350 cubic meters of raw alcohol per day dur-
minimal STockS aT The enD of The year

All the production from the 2010-11 campaign has been sold, representing 234,000 tons of sugar, 51,000 cubic meters of bioethanol, 17,000 cubic meters of high-purity alcohol and 77,000 tons of pellets. Stocks were taken down to their technical minimum before the arrival of production from 2011-12. Sales of superethanol (E85) are continuing to develop, with over 6,000 cubic meters sold during the year at 170 service stations.
Tereos TTds sugar beet areas increased once again thanks to the development of the various alcoholethanol contracts, with 34,600 hectares farmed by 420 beet growers in 2011.
recorD yielDS
Whereas the target yield had been set at 70 tons per hectare at 16% sugar content for several years, productivity reached a record of 81 tons per hectare for the 2011 harvest, compared with 61 tons per hectare
Sugar beeT yielD (TonS aT 16 per hecTare)

81 65.4 60 58 59 63.2 66.7 61.4
campaign lengTh (DayS)

128 91 89 97 100
84
85
86
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
Sugar cane
21,900 staff 11 industrial sites

18.of sugar 9 million tons
cane processed
Processing process
Sugar cane
CRySTALLIzATIon ConTRoL AT THE LE GoL SUGAR REFInERy (RUnIon - FRAnCE).
QUALITy AnALySIS AT CRUz ALTA (BRAzIL).
Receipt Defibration
Crushing
Purification / settling Evaporation Crystallization Centrifugation Drying Scums Refining Water Brown sugar
Bagasse
Low-purity syrup Electricity Dilution White sugar Fermentation Distillation
Vinasse Hydrated alcohol
Dehydration
Anhydrous alcohol
Brazil
Tereos Guarani
SUGAR CAnE nURSERy AT THE CRUz ALTA SITE.
ALCoHoL SAMPLES BEInG TAkEn AT THE CRUz ALTA dISTILLERy.
Production investments
2011-12 was marked by falling sugar cane yields in Brazil. In this environment, Tereos Guarani is focusing on developing its agricultural production and modernizing its industrial facilities.
The Brazilian sugar cane sector revealed a surprise this year, with its sugar cane production dropping 14%. Tereos Guarani proved no exception to this trend, processing 16.3 million tons during this campaign. These contingencies led to a growing supplyside shortage of sugar and ethanol, pushing world prices up again. second drought struck from May to September 2011. Then, two periods of frost an unusual phenomenon in So Paulo State damaged part of the sugar canes. Lastly, flowering appeared, affecting the agricultural yields a little more.
Sugar cane replanTing program

Set against a shortage of sugar cane supplies, high prices and strong exchange rates, Tereos Guaranis priority is to start planting again and modernize its capabilities with a view to saturating its facilities, reducing its sugar losses and capitalizing on its energy potential as effectively as possible. In March 2011, Tereos Guarani launched a five-year and 330 million euro investment program, funded thanks to capital provided by Petrobras under the agreement signed in 2010 for 85 million euros, combined with an 11-year preferential rate loan from the Brazilian national development bank (BndES) for up to 300 million euros.
DownTurn in brazilian proDucTion

Brazilian sugar cane yields were disappointing this year, coming in at 70 tons per hectare, compared with 83 tons per hectare for the previous campaign. This decline, the first recorded since 1999, took observers by surprise. Indeed, the financial crisis and the downturn in sugar prices in 2008 led to agricultural and industrial investments being scaled back in Brazil, pushing up the average age of the plantations, which pointed to lower yields. The ageing of the sugar canes was also combined with particularly harsh weather conditions: a first drought in 2010 disrupted growth for the canes replanted in 2009 and 2010, while a
valore cerTificaTion for Sugar cane

13 growers supplying sugar cane for Tereos Guarani are taking part in the pilot Valore project, launched in April 2011 through a partnership between Tereos Guarani and Bayer. For one year, the growers are being accompanied by the agronomics teams from Tereos Guarani and Bayer, looking to improve agricultural practices and ensure that safety rules are followed for agricultural staff, in addition to occupational well-being and compliance with the workforce and environment-related guidelines set by Brazilian law. once the operations have been audited, this initiative will lead to Valore certification, which guarantees sustainable production. With this project, Tereos Guarani aims to ensure the competitiveness of Brazilian sugar cane.
Tonnage of Sugar cane proceSSeD (000 TonS)

20,000
14,400 12,200 4,500 5,400 8,200
15,500
20,200 16,300
15,000
10,000
3,800 3,900
5,000
0 02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
l own-planted
l Third-party (growers)
80%
ConTRoL RooM AT THE CRUz ALTA SUGAR REFInERy.
of sugar cane harvested mechanically
MECHAnICAL SUGAR CAnE HARVESTInG.
The investment program being rolled out aims to increase production to 23.5 million tons of sugar cane by 2015. In this context, 50,000 hectares were replanted in 2011. This investment drive will be maintained in 2012 with an equivalent planting program, which started up midway through January. In addition, work is being carried out on sugar cane varieties with the sugar cane technology center (CTC) and the inter-university network for the development of the sugar cane industry (RIdESA) in Brazil, as well as with the variety research structure eRcane in Runion. other areas for work are also being developed: using precision farming techniques, adding value to vinasse more effectively and even limiting soil compaction linked to the development of mechanical harvesting, which covers more than 80% of the sugar cane processed by Tereos Guarani today. A first vinasse dehydration unit was also inaugurated this year at the So Jos plant.
reDucing Sugar loSSeS

From an industrial perspective, the main opportunities concern sugar losses and energy saving in facilities to ramp up cogeneration and electricity sales to the power grid. In these areas, Tereos Guarani is benefiting from the work accomplished by Tereos France over the past few years. Sugar losses are being reduced with new mills fitted in the So Jos, Mandu and Tanabi plants for the next campaign. Tereos Guarani is also benefiting from the new So Jos distillery, which is enabling it to have additional capacity for fermentation, while reducing its molasses transportation costs. In terms of electricity sales, various investments are underway at the Cruz Alta, Mandu and So Jos facilities. In total, electricity sales to the grid are expected to double as of the next campaign. Lastly, Tereos Guarani has acquired the remaining 32.6% interest in the Andrade plant that was previously held by the longstanding family shareholder.
greenpeace viSiTS cruz alTa

on 29 September 2011, representatives from Greenpeace Brazil visited the Cruz Alta site in connection with a meeting organized by the Brazilian sugarcane industry association (UnICA). on this occasion, Ricardo Baitelo, the renewable energy campaign coordinator for Greenpeace Brazil, praised the effective fit between electricity production from bagasse and the periods of low production by hydroelectric dams. He also highlighted the reduction in the corresponding greenhouse gas emissions, adding that electricity production from bagasse is beneficial for the environment and should encourage greater use of biomass-based electricity in order to satisfy growing demand.
elecTriciTy SaleS (gigawaTT hourS/year)

287 271
Sugar proDucTion (000 TonS)

1,556 1,344 1,099 891 1,090 937
alcohol proDucTion, anhyDrouS anD hyDraTeD (000 cu.m)

692 496 466 503
394 165
122 36 41
113
96
118 433 480
555 68 84 105
22
03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
03/04 04/05 05/06 06/07 07/08 08/09 09/10
10/11
11/12
Mozambique
Companhia de Sena
PACkInG SUGAR In BAGS In MARRoMEU.
MAInTEnAnCE TRAInInG.
Good campaign
The 2011 campaign was marked by a clear improvement in agricultural yields for Companhia de Sena, Tereos subsidiary in Mozambique.
Sugar cane yields increased by 35% and cane production reached 710,000 tons in 2011. The work carried out to replant the sugar canes and develop irrigation and drainage contributed towards this good result. In total, 52% of the area was irrigated in 2011, equivalent to 7,000 hectares. In addition, the weather conditions were also very favorable for the non-irrigated areas. In this way, Companhia de Sena ended the campaign with an average yield of 73 tons per hectare, compared with 53 tons in 2010 and 41 tons in 2009, while the canes sugar content rose from 11.1% in 2010 to 12.5%. despite certain production difficulties partly linked to the length of the campaign. Sugar production totaled 67,000 tons, compared with 46,000 tons in 2010-11. In the same way as Mozambiques three other sugar producers, Companhia de Sena sells all its sugar to distribuidora national de Aucar (dnA), the company which has exclusive sales rights. once domestic demand has been covered, the surplus sugar is left to each company for its export needs. Indeed, Companhia de Sena was able to sell over 38,000 tons of sugar to the olmedo refinery, with Mozambique benefiting from the Everything But Arms agreement that enables developing countries to export to Europe without any customs duties or volume restrictions.
recorD proDucTion levelS

The campaign lasted a total of 217 days. This years progress reflects the improved sugar content and above all the better extraction levels achieved,
40% aDDiTional yielDS in irrigaTeD areaS

In 2009, Companhia de Sena launched a major irrigation development plan aiming to double the irrigated cane-growing area within five years. The irrigated area was increased from 5,650 hectares in 2009 to 7,000 hectares for the 2011-12 campaign, and is set to climb to over 10,000 hectares by 2014. In total, more than 7 million euros will be invested over five years, making it possible to increase sugar cane yields by around 40% in irrigated areas.
Sugar proDucTion (TonS)

69,000 61,000 66,000 46,000 38,000 67,000
Sugar cane yielD (TonS/hecTare)

73 53 41
55
47
52
2006
2007
2008
2009
2010
2011
2006
2007
2008
2009
2010
2011
Runion and Tanzania
Tereos Indian Ocean
SUGAR CAnE BEInG dELIVEREd To THE LE GoL REFInERy.
BRoWn SUGAR SToREd AT EURoCAnnE.
Production stable and effectively capitalized on

The 2011 campaign was satisfactory in the Indian ocean. In Runion, sugar cane production performed well in the end, while Tanzania achieved very good yields thanks to the new varieties planted.
2011 looked set to be a mediocre year for Runion sugar due to the drought seen at the end of 2010. In the end, milder weather conditions and ongoing efforts in the cane fields paid off.
wonDerful SurpriSe in runion

While certain Southern regions saw their average tonnage contract by around 5%, volumes in the East and north stabilized and two new records were set with the Ravine Glissante and Beaufonds platforms. In the end, 1,887,000 tons of sugar cane were processed in the islands two refineries BoisRouge and Le Gol showing a slight increase in relation to 2010. Average sugar content came to 13.5%, compared with 13.6% in 2010. In this way, Runion produced 206,000 tons of sugar, with around 50% well-valued specialty sugars*. From an industrial perspective, the two sugar refineries and delivery platforms ran smoothly, enabling the teams to receive maximum sugar cane volumes when the technical and weather conditions allowed. In 2011, a significant budget was set aside for ensuring better control over the environmental impacts of industrial activities. From making new
requests for certification to commissioning a treatment plant in Bois-Rouge and sealing a partnership with EdF for effective energy demand management, the actions taken have paved the way for Tereos Indian ocean to consolidate its overall approach to improve its production tools, services and products.
Tanzania: campaign wiTh STronger reSulTS

In Tanzania, the 2010-11 sugar campaign, which ran through to the end of March, was outstanding. 798,000 tons of sugar cane were received, compared with 651,000 tons for the previous campaign, while the yield per hectare climbed from 85 to 110 tons. These good results were made possible by various factors, including the new sugar cane varieties grown, despite a relatively unfavorable rainy season. In this way, almost 86,000 tons of sugar were produced by Tanganyika Plantation Cie, in which Tereos has a 30% stake.
*Specialty sugars are defined by their microbiological values, grain size and coloring.
effecTive energy DemanD managemenT

Since 2006, Runions sugar refineries have been working alongside EdF on an energy-saving policy. In 2011, the parties wanted to ramp up this approach, signing a new agreement making it possible to promote and carry out actions to ensure effective energy demand management. Tereos Indian ocean is committed to developing actions aimed at reducing energy consumption levels in its subsidiaries, while EdF is committed to providing financial support for the implementation of the investments needed.
Tonnage of Sugar cane proceSSeD in runion (000 TonS)

1,969 1,811 1,916 1,801 1,864 1,576 1,908 1,877 1,887
1,812
1,772
2001
2002
2003 2004 2005
2006
2007
2008
2009
2010
2011
Cereals
Potato Manioc
1,700 permanent
staff
10 industrial sites 3.7million tons of cereals

processed
Cereals
Processing process
nESLE STARCH UnIT In FRAnCE.
Mill Sieving
Bran
Gluten
Soaking Milling and separation Starch / gluten separation Germ and fibers Liquefaction and saccharification
Drying Drying Starch milk
Native and modified starches Liquefaction and saccharification
Filtration and demineralization
Fermentation Distilling
Dehydration Glucose syrups
Rectification
Drying
Concentration Bioethanol
Grain alcohol
Hydrogenation Maltodextrins
Crystallization Crystalline polyols
Glucose syrups
Liquid polyols
Cereals market
WHEAT BEInG dELIVEREd In SALUzzo (ITALy).
MAIzE BEInG UnLoAdEd In MARCkHoLSHEIM (FRAnCE).
Surge in prices
From the drought in Eastern Europe to the revolts in the Middle East, the development of the Chinese economy and the Japanese tsunami, the cereals market was affected by a number of unforeseeable events in 2010-11.
and several years of falling stocks. Therefore, cereal prices rose from 130-150 euros per ton to nearly 240260 euros per ton in January 2011. Buoyed by the good level of ethanol prices and the outlets for exporting to Brazil and Europe, American ethanol refineries became the main users of American maize, ahead of animal feed. China, the worlds second largest maize producer, still represents a very significant consumer and is starting to source supplies from external markets. After forbidding the development of cereal-based ethanol, the country is now taking steps to restrict the development of maize-based starch production. producer regions were in line with expectations, with wheat improving on its performance as stocks climbed to over 30% at the end of 2011.
DownTurn aT The enD of 2011

Looking beyond the various production and stockrelated fundamentals, 2010-11 was marked by various macroeconomic events that led to significant variability in prices, compounded by speculative phenomena. The revolutionary movements in the Middle East weighed on prices, with strategic stocks built up at the beginning of 2011. Later in the year, the tsunami and Fukushima nuclear disaster raised the first doubts about world growth in March, while Russia and the Ukraine lifted their export bans in July 2011, driving prices down. From the summer onwards, the European debt crisis, weak US growth and doubts surrounding the sustainability of Chinas strong growth fueled concerns on the cereal markets, sparking a downturn, with prices falling to 180200 euros per ton.
The start of 2010-11 was marked by a surge in cereal prices, triggered by the drought in the Black Sea countries (mainly Russia, the Ukraine and kazakhstan) in August 2010. When Russia and the Ukraine announced that they would not be allowing their production to be exported, resulting in over 20 million tons of wheat being taken off the global market, this increased the pressure on a maize market that was already tense following the disappointing harvest in the US, combined with sustained Chinese demand
new balanceS for maize

despite Europes very good harvest in 2011, the USdAs successive cuts in its estimates for American maize production as the months went by highlighted the fragility of the global maize balance, down to an all-time low with 14% stocks. At the same time, wheat harvests in the worlds main
3.7 million TonS of cerealS proceSSeD

In 2010-11, 3.7 million tons of cereals were processed by the Tereos Group, with the following breakdown: 59% for food outlets (starch products and grain alcohols for spirits) and 41% for non-food outlets (ethanol and starch products for cardboard-paper and chemicals industries). Cereal processing groups together the activities of Tereos Syral, Tereos Benp and Tereos dVo.
cereal priceS in The european union (/T)

300 280 260 240 220 200 180 160 140 120 Apr. 07 July 07 oct. 07 Jan. 08 Apr. 08 July 08 oct. 08 Jan. 09 Apr. 09 July 09 oct. 09 Jan. 10 Apr. 10 July 10 oct. 10 Jan. 11 Apr. 11 oct. 11 Jan. 12 July 11 100
wheat
maize
Source: HGCA, Euronext
Starch and glucose production

nESLE STARCH PRodUCTIon ConTRoL RooM (FRAnCE). IndUSTRIAL PILoT AT THE RESEARCH And dEVELoPMEnT LABoRAToRy In AALST (BELGIUM).
Diversification of raw materials and locations

From the development of production capacities at its European plants to the development of sales, raw materials, acquisitions in Europe and Brazil, and the project in China, the past year was focused on growth for Tereos Syral.
Tereos Syrals sales followed developments on the market, buoyant at the start of the year then stable before falling slightly in terms of starches for the paper-cardboard sector at the end of the year. once again, sales were sustained throughout the year for the food and pharmaceutical sectors, particularly for those covering functional applications. Subsequently, Tereos Syral achieved growth in its volumes and market shares in Europe. For their part, prices followed the increases recorded by cereals and energy, continuing to climb over the whole year (up by more than 35%). Indeed, this growth continued for more than six months after cereal prices started to drop, due to the time-lag for commercial negotiation periods and advance hedging on the forward markets. ments were made to support this ramp-up, while contributing towards extending the portfolio to include more value-added products (dextrins and polyols).
STraTegic DevelopmenT in brazil

For several years, the Brazilian market for starch products has been seeing annual growth of around 10%. Supplied by two main players - Maize Products International (CPI) and Cargill - Brazilian customers are fully behind the emergence of a third major player. Building on its strong presence on the sugar and ethanol markets in Brazil through Tereos Guarani, it was a natural step for Tereos Syral to launch starch activities with a project offering both commercial and industrial synergies. The acquisition of a 68% stake in Halotek in July 2011 is enabling Tereos Syral to develop its presence on manioc-based native and modified starches. This unit, located in Palmital, in southwest So Paulo State, near the border with Parana State, processes almost 100,000 tons of manioc to produce a range for the paper-cardboard industry. Work to build a
TargeTeD inveSTmenTS in europe

The five European starch units wheat (Marckolsheim, Aalst, nesle and Saluzzo) and maize (Saragossa and Marckolsheim) operated at record levels to satisfy demand. over the year, almost 150,000 tons of additional cereals were milled. Various invest-
SynergieS arounD The hauSSimonT poTaTo STarch uniT

The Haussimont potato starch facility is developing a potato starch production activity, benefiting from a quota for over 63,000 tons, representing approximately 25% of the French quota. This industrial site processes almost 300,000 tons of potatoes, generating 33 million euros in revenues. The Haussimont site will be able to benefit from industrial synergies with Tereos Syrals other European starch processing units, notably contributing towards saturating certain specialty lines which will now process potato starch in addition to maize and wheat starches.
Tonnage of cerealS proceSSeD by TereoS Syral (000 TonS)

2,860 2,725 2,707 2,852
545
04/05
575
593
05/06
06/07
07/08
08/09
09/10
10/11
l wheat
l maize
100
HAUSSIMonT PoTATo STARCH UnIT (FRAnCE).
million euros invested in Brazil
PALMITAL STARCH UnIT (BRAzIL).
maize starch unit at the Palmital site will be completed in 2012, launching the development of a cereal-based starch activity. Tereos Syral plans to invest a total of nearly 100 million euros in its Brazilian starch platform, aiming to establish itself as the countrys third largest supplier.
heaDing SeT for china

In July 2011, Tereos Syral and the Wilmar group signed a letter of intent for developing the production of wheat-based starch products in China. 51% of this new company will be owned by Wilmar, Asias leading processor of agricultural products, with a 49% interest for Tereos Internacional. Under this agreement, a first facility will be built in the south of the country, in dongguan near Canton and major areas for consumption in Guangdong Province, followed quite quickly by a second in Henan Province, a major wheat production area. The objective with this joint venture is to participate in the markets growth, estimated at between 10 and 15% per year for the next five years, and very quickly establish a position as one of the industry
leaders, based on an effective cost structure and a western level of quality, highly sought after in China due to growing food safety requirements. Since China has a shortage of sweetener products, development will be focusing initially on the isoglucose sectors, as well as native starch and glucoses, while supplying Wilmars mills with the gluten extracts. In time, Tereos Syral and its partner are looking to replicate the position they have built up in Europe in terms of the volumes of cereals processed.
acquisition is in line with an upstream approach, offering new outlets for SCAF members, and a downstream approach, extending the range of products offered by Tereos Syral for its customers. Looking forward, Tereos Syral aims to capitalize on the know-how it has gained in Europe to consolidate and develop its European positions, while seeking out growth on starch product markets in the strongest-growing regions around the world. The initiatives launched in Brazil and China represent major challenges for 2011-12. These various developments mark a new stage in the growth of cereal processing activities within the Tereos Group, which is moving towards 6 million tons of raw materials processed over the medium term.
poTaTo STarch in europe

Alongside this, Tereos Syral is continuing to develop in Europe, particularly with functional starches for the agrifood, bioplastics and paper-cardboard sectors. With this in mind, Tereos Syral acquired a majority stake (75%) in the Haussimont potato starch unit in december 2011. This facility has joined Tereos Syrals European starch products division, while keeping the support of its raw material suppliers. Indeed, the starch potato supplies cooperative (SCAF) is still a shareholder in the company. This
wilmar, TereoS parTner in china

Wilmar, Tereos partner in China and Asias leading agroindustrial group, is also the worlds eighth largest sugar producer. In addition, it produces wheat flour in China, with 17 mills in operation or under construction, which will be added to the starch units built in partnership with Tereos Syral. Wilmar has revenues of almost 40 billion dollars, is listed on the Singapore stock exchange and has a market capitalization of over 25 billion dollars. For the Chinese starch production project, Tereos Syral will bring its expertise in wheatbased starch production, as well as the rollout of these products for industrial customers and the overseeing of the investments needed for this activity. The Wilmar Group will bring its knowledge of the Chinese market and Asian customers.
Grain alcohols
SEnSoRy AnALySIS LABoRAToRy AT THE nESLE dISTILLERy (FRAnCE).
SALUzzo dISTILLERy (ITALy).
Recognized European leader

Tereos is developing its operations on the grain alcohol market in Europe, where it has already established a leading position.
The main spirits producer customers are developing their premium white alcohol sales worldwide from out of their European facilities. driven by this growing demand, the Tereos Groups grain alcohol sales for the spirits market rose 15% this year to almost 170,000 cubic meters. Tereos, the European number one for grain alcohols, carries out its production at the nesle, Saluzzo and origny distilleries. The first two are combined with starch units, which makes it possible to fully capitalize on the industrial synergies available between the two activities and enables trade-offs to be made in line with market trends. These two units beat their production records set the previous year. The highpurity wheat distillery at origny, launched at the end of 2009, produces specific high-quality alcohol. It has met its objectives in terms of both quality and production levels, notably reaching 96% of its nominal capacity as of its second year of operations.
Selby DiSTillery broughT inTo proDucTion

TereoS grain alcohol proDucTion
l Selby l origny l greenwich l Saluzzo l nesle

05/06 06/07 07/08 08/09 09/10 10/11 11/12
At the beginning of 2012, the Selby distillery was brought online to further strengthen the Groups industrial facilities in Europe. In yorkshire, England, it is ideally located close to Scotland and various plants operated by Tereos traditional customers. This distillery, operated in partnership with the Frandino group, will have an annual capacity of 45,000 cubic meters of high-purity wheat alcohol.
parTnerShip wiTh The franDino group

Tereos Syrals grain alcohol sales are generated in partnership with the Frandino group, which dates back to the 1960s when a fruit distillery was set up using waste products from largescale fruit and vegetable production activities in Italys Saluzzo region, southwest of Turin, as its raw material. Faced with the risk of a shortage of raw material supplies, the distillery converted to wheat in 1981, which marked the starting point for a sustained rate of development in Europe. The alliance was extended to include the nesle site in 1998 with a grain distillery, whose capacity was doubled in 2003. The production from Saluzzo and nesle was very quickly set aside for the high-end white alcohol market (gins and vodkas). The units burgeoning reputation enabled their rapid commercial success, paving the way for two new investments in Saluzzo (2009) then Selby, near york in the Uk (2012). Thanks to this partnership, the Tereos Group now has a strong leading position in Europe on this demanding niche.
Bioethanol
AALST dISTILLERy (BELGIUM).
GLUTEn ExTRACTIon UnIT BEInG BUILT In LILLEBonnE (FRAnCE).
Changes at the Lillebonne site

In an environment with buoyant markets for sugar and starch products, Tereos European bioethanol production was temporarily scaled back in 2010-11, while the Lillebonne facility is gradually being converted into a starch unit.
2010-11 was a record year for the Lillebonne facility, which recorded its best technical and financial performances. Indeed, the plant processed more than 730,000 tons of cereals and produced almost 280,000 cubic meters of bioethanol. At the end of 2011, it was operating at over 9,000 hl/ day and it passed the 300,000 cubic meters mark (12-month trailing period) in november 2011. The Aalst plant, with its flexible industrial facilities, made trade-offs to focus on starch production on account of the favorable margin differential in relation to bioethanol. In this way, bioethanol production was down slightly in relation to the previous year. European bioethanol sales for the Tereos Group including Tereos France, Tereos TTd, Tereos Benp and Tereos Syral production came to 543,000 cubic meters in 2010-11, factoring in Tereos Frances trade-offs to focus on sugar. They picked up again in 2011-12, thanks in particular to the good European sugar beet harvest.
gluTen anD hyDrolySaTeS aT lillebonne

Set against a backdrop of high cereal prices, two key decisions have been taken for the development of the Lillebonne site. Firstly, setting up a gluten extraction unit, which will be starting up during the first half of 2012. The facility will have a mill, with vital gluten extracted from the flours before being dried and made available for the various outlets developed by Tereos Syral. Secondly, a hydrolysate production unit will be set up, serving Tereos Syrals internal outlets (for subsequent processing into value-added products) and the growing requirements for plant chemistry.
beTTer paymenTS for wheaT

The Lillebonne sites industrial flexibility, made possible by the investments underway, will offer possibilities for capitalizing more effectively on the benefits of wheat supplied by Tereos grain farming partners. Therefore, as of 2011-12, 30% of the wheat processed at Lillebonne will be paid for in line with market prices. This percentage will gradually rise to 100% by the end of 2015.
TereoS bioeThanol proDucTion in europe (000 cu.m)

674 531 441
l Tereos TTD l Tereos france l Tereos Syral l Tereos benp
571
543
214 47
03/04
52
04/05
94
05/06 06/07 07/08 08/09 09/10 10/11 11/12 (P)
How does Tereos work?

A CooPERATIVE GRoUP, TEREoS BUILdS ITS AGRICULTURAL PRodUCTIon, IndUSTRIAL ACTIVITIES And EMPLoyMEnT WITH A FIRM FoCUS on THE REGIonS.
Around sustainable partnerships, Tereos harnesses the commitment of its cooperative growers, employees and partners, as well as the confidence of its customers, to develop its long-term growth strategy. In its approach to sustainable development, Tereos has chosen the internationally-recognized Global Reporting Initiative (GRI) framework.
Human resources
PRoCUREMEnT dEPARTMEnT AT THE nESLE STARCH UnIT (FRAnCE). QUALITy LABoRAToRy In MELnIk (CzECH REPUBLIC).
Our commitments
Valuing know-how
The talent, commitment and business expertise of the men and women who make up Tereos represent the foundation guaranteeing the Groups performances. Each day, Tereos harnesses the motivation of its teams and makes every effort to offer them a fulfilling work environment.
The Tereos Group had 26,657 employees at 30 September 2011, including 17,121 permanent staff (corresponding to GRI indicator LA1). The level of permanent staff is up slightly in relation to 2010 (+1.6%). This situation reflects different changes depending on the activities and locations of the various industrial sites. Tereos Guarani in Brazil has a high number of agricultural positions (67% of permanent staff), as does Companhia de Sena in Mozambique (70% of permanent staff). In total, they represent more than 60% of the Groups workforce. Indeed, these two subsidiaries have sugar cane production activities that require significant levels of labor for work in the fields, from planting to harvesting, even if mechanical harvesting is becoming widespread in Brazil. While staffing levels for the sugar cane and beet activities are stable, the cereal processing division has seen changes in its headcount thanks to Tereos Syrals acquisition of an interest in the Brazilian company Halotek, specialized in processing manioc into starch. This company has 190 staff. The Haussimont potato starch facility, which joined the Group at the end of december 2011, has 94 employees. In Brazil and Mozambique, Tereos is committed to the fight against child or forced labor. In Mozambique, where Tereos grows all of the sugar cane processed directly, the risk of incidents is considerably reduced thanks to the use of biometric control measures to check the staff who are present (digital fingerprint checking). In Brazil, where 70% of the sugar cane is purchased from third parties, Tereos requires its suppliers to make a commitment to not use child or forced labor. Any failure to comply with this clause results in the contract being terminated (corresponding to GRI indicators HR6 and HR7). The Groups companies offer working conditions and benefits that exceed industry standards and branch-level agreements: all Tereos staff are cov-
35% SeaSonal STaff

Given the nature of the Groups activities, seasonal contracts represent around 35% of Tereos workforce. This proportion varies considerably depending on the activities and locations. Indeed, the sugar beet and cane activities require significant levels of seasonal staff on account of the changes between campaign and inter-campaign periods.
Headcount at 30 September 2011 Tereos Participations Sugar beet Tereos France Tereos TTd Total Tereos Syral Tereos Benp Total Tereos Indian ocean Tereos Guarani Agricultural activities (Brazil) Companhia de Sena Agricultural activities (Mozambique) Total
PERMANENT NON-PERMANENT AND CONTRACTS SEASONAL CONTRACTS 114 1,704 359 2,063 1,500 113 1,613 452 3,392 7,013 748 1,726 13,331 17,121 2 698 147 845 101 10 111 291 731 3,438 273 3,845 8,578 9,536
Cereals
Sugar cane
GENERAL TOTAL
ConTRoL RooM AT THE BoIRy SUGAR REFInERy (FRAnCE).
InTER-CAMPAIGn MAInTEnAnCE AT THE BoIS-RoUGE SUGAR REFInERy (RUnIon - FRAnCE).
CRySTALLIzATIon UnIT AT THE CESk MEzIRICI SUGAR REFInERy (CzECH REPUBLIC).
ered by collective pay negotiations (corresponding to GRI indicator LA4) and the vast majority of the Groups employees have supplementary insurance cover to reimburse their healthcare costs, managed by a specialized institution, in addition to the specific legal requirements for each local situation (corresponding to GRI indicator EC3).
Runion are capitalized on in Mozambique, Tanzania and Brazil, in the same way as know-how relating to cogeneration. Tereos Syrals European teams are involved in the Brazilian starch production project, including work that is underway to build the new maize starch unit in Palmital. Tereos Syral is developing a project to improve its industrial performance. Looking beyond its technical dimension, this ProdEx project for Production Excellence is based on engaging all staff and building their sense of responsibility at every level within the organization. This approach aims to develop managerial practices so that each employee is a genuine performance driver. Three pilots were launched in 2011 before their gradual rollout in all the facilities.
subsidiaries. In total, more than 400,000 hours of training were provided for Tereos staff in 2011. Since december 2010, Tereos TTd, Tereos Czech subsidiary, has been developing a staff training process development project, supported by the European Social Fund under the Human Resources and Employment program. The first phase in this project made it possible to train up 198 staff in six months. This program covers all the professions within Tereos TTd and will continue until november 2012. In Runion, training programs are also being rolled out, including training for cachalot drivers name given to vehicles carrying the sugar cane on road safety-related subjects. With 44 tons transported, this year focused on green driving practices. Alongside this, and to ensure the cachalot trucks are loaded correctly, overhead crane operators received training on loading and lifting safety rules. Elsewhere, Tereos France is encouraging its staff to gain professional qualification certificates (CQP), enabling them to acquire a recognized qualification. In total, 16 people followed such a program in 2011.
ShareD know-how
From agriculture to industry, trade, research and development, finance, information systems and communications, the range of professions carried out within Tereos is vast. For all its professions, the Group harnesses local know-how each day and makes every effort to ensure this is shared between the various subsidiaries and developed. To achieve this, it has a strong focus on exchanges. Brazilian agronomists carry out assignments in Mozambique. Maintenance specialists from Tereos France provide support for Tereos Guarani, Tereos TTd and Tereos Indian ocean to optimize their procedures. The varieties developed by eRcane in
over 400,000 hourS of Training

In addition, the Group encourages mobility and gives priority to promoting people in-house. With this in mind, as well as to continuously improve skills, training programs are developed in all of the Groups
average number of hourS Training per year anD per employee
SeTTing up an enTerpriSe Social neTwork

In 2011, a 2.0 intranet was launched for the entire Tereos Group. now, all of the Groups staff share the same intranet, with real-time access to the latest news for Tereos and its subsidiaries. With the deployment of this new intranet, an enterprise social network has been set up, offering a range of collaborative tools to facilitate exchanges of information and best practices between the Groups various sites and subsidiaries.
(permanent and seasonal, group-wide) 12.4 8.7
16.3
2008/09
2009/10
2010/11
Corresponding to GRI indicator LA 10
4%
AGRICULTURAL MACHInERy dRIVER AT TEREoS GUARAnI (BRAzIL). AGRICULTURAL STAFF AT CoMPAnHIA dE SEnA (MozAMBIQUE).
of Tereos frances staff are young people on workbased training programs
In Brazil, agricultural staff are continuing to be redeployed in other professions in connection with the development of mechanical harvesting. In 2011, 685 agricultural staff were guided towards new professions in the companys agricultural, industrial and logistics sectors. In its development plan, Tereos subsidiary in Mozambique Companhia de Sena has mapped out a long-term strategy with the development of local employment at all levels and in all disciplines. For this, it has a professional training center accredited by the countrys national institute for employment and professional training (InEFP), with 12 employees currently taking courses in universities and external training institutes. Lastly, with support from the Marromeu district education services, Tereos subsidiary in Mozambique is helping develop adult literacy.
SafeTy for all

Tereos has set out its commitment to ensuring a high level of safety for all its staff, both at work and outside of the company. The development
of a true safety culture focused on risk prevention guides the organization of all the Groups sites, with specially adapted programs rolled out at all levels within the company. Each subsidiary develops its own program, tailored to its activities. Each year, Tereos Syral organizes a Safety day, providing an opportunity to raise awareness among staff and their families on a particular theme, with travelling in total safety chosen for 2011. This targeted action is combined with daily awareness-building through the Safety and Me poster campaigns, as well as the annual award for the best improvement in terms of safety. In Brazil, the accident reduction program launched in 2010 is continuing to move forward. Within this framework, Tereos Guarani is putting new preventive and responsive methods in place. By engaging managers in better management, carrying out training actions and improving discipline, Tereos Guarani was able to achieve its best safety-related performance this year, with occupational accidents reduced by 35% in relation 2010.
Tereos France has the best safety record in the French sugar industry. This success reflects the care taken by staff under contracts with individual objectives relating to safety, set up over the past five years.
Training young people

Welcoming young people on apprenticeships or work placements contributes towards their integration and enables them to gain professional qualifications. That is why Tereos takes training into consideration for future workers and new staff. In this way, Tereos France has 93 young people on apprenticeships or training contracts combining time at work and college, and is committed, in line with its forward-looking
career and skills management agreement, to taking on young people on work-based training programs for 4% of its workforce. In Mozambique, Companhia de Sena has set up partnerships with seven schools and universities, welcoming trainees from all levels. For its part, Tereos Guarani is developing two programs: Trainees and young Talents. The first involves attracting, developing and employing young professionals with the potential to hold managerial positions within the company a few
years down the line. 28 young people benefited from the Trainees program in 2011, and 68% of the people who have completed this program since it was created are still employed by Tereos Guarani today. The young Talents program has made it possible to welcome 50 trainees from higher education or technical courses looking to experience the sugar-alcohol industrys professions in Tereos Guaranis agricultural, industrial, commercial and administrative sectors.
Research and development

VARIETy SELECTIon WoRk CARRIEd oUT By ERCAnE (RUnIon - FRAnCE). nESLE STARCH UnIT RESEARCH oFFICE (FRAnCE).
Our commitments
Innovation driving performance

From the farmer to the customer, Tereos contributes to the development of raw materials through innovation, driving improvements in farming revenues and industrial performance. It regularly carries out projects to optimize its processes. Tereos is tuned into its industrial customers and consumers, providing them with the products and services they are looking for. Tereos also looks into new outlets for agricultural commodities.
Through its agricultural roots and commodity processing business, Tereos maintains links with the upstream agriculture phases for all its activities. With its cooperative growers, partners and suppliers for sugar beet, sugar cane and cereals, Tereos is constantly carrying out research and obtaining seeds that are not only efficient from an agronomical perspective, but also optimal in terms of industrial processing. growers. It is thanks to their technical prowess that these innovations can be put into practice.
inDuSTrial proDucTiviTy
Tereos core business - food production - is characterized by major investments making it possible to reduce processing costs, as well as by often delicate processes that are constantly adapted to the raw materials produced by growers. Production costs are also key when it comes to innovation. All of the Groups facilities are able to benefit from Tereos expertise for choosing the best processes and improving their production costs. The use of bagasse to supply energy for the sugar cane processing units is one of the best examples of this. This innovation, introduced with the first investments at the Groups facilities in Runion, is now standard practice around the world, particularly in Brazil. In terms of its sugar beet refineries, Tereos has set up sugar beet vinasse methanation units at Artenay and dobrovice, a world first. All the engineers in the facilities are working each day to meet the challenge of process optimization. As a result, Tereos France has managed to regularly reduce its use of limestone for sugar juice purifica-
agriculTural proDucTiviTy
Whereas a relative slowdown is expected in terms of the pace of growth in cereal yields, improvements in sugar beet productivity are following a remarkably positive trend thanks to the work accomplished by Tereos Frances agronomy department, particularly with the French technical sugar beet institute (ITB), an inter-industry organization. Today, sugar beet from the latest selections is producing 15 tons of sugar per hectare. not only is the overall quantity of sugar increasing, but also the extraction quality is improving, alongside other agronomic aspects, such as disease resistance or tolerance. To implement these innovations, the technical centers draw up specific procedures for use by the
innovaTive varieTieS wiTh ercane

Since 1929, eRcane has been helping drive the development of the sugar cane industry in Runion, through the selection of new increasingly productive cane varieties and research work at the forefront of genetic, agronomic and technological progress. The expertise and results achieved by eRcane are used in many sugar cane producing countries, with which eRcane is developing partnerships. eRcane officially released R585 in december 2010. This cane variety, with a strong biomass component, offers good sugar yields and above all fiber production levels that are 20 to 30% higher than standard varieties, an interesting characteristic for the development of cogeneration in Runion.
average Sugar beeT yielD in france (T/ha)

100 95 90 85 80 75 70 65 60 55 50 45 t/ha 16
1985-86
1991-92
1993-94
2001-02
2005-06
2007-08
1999-00
Source: CGB.
2003-04
2009-10
2 0 1 1 -12
1981-82
1979-80
1983-84
1995-96
1989-90
1987-88
1997-98
TEREoS SyRAL RESEARCH And dEVELoPMEnT LABoRAToRy In MARCkoLSHEIM (FRAnCE).
STEVIASUCRES IS A PATEnTEd BLEnd CoMBInInG STEVIA ExTRACTS And SACCHARoSE.
FUTURoL PILoT dISTILLATIon CoLUMn InAUGURATEd In 2011.
tion: consumption levels were cut from over 25 kg of limestone per ton of strips in the 1990s to less than 16 kg for the 2011-12 campaign.
reSearch Serving cuSTomerS anD conSumerS

The approaches for each of the markets covered by Tereos vary significantly, but dovetail together effectively: when formulating food products, the focus is on understanding consumers behavior, expectations and needs. All or part of the sales and marketing efforts support innovation through the understanding of consumer expectations. Tereos carries out this work through its household sugars brands. Recent examples highlight the dynamic marketing approach in this sector and its constant commitment to meeting consumers needs as closely as possible: doypack packaging, flavored sugars and even the Ligne Stvia range. Lastly, the most competitive part of innovation concerns the service provided to industrial custom-
ers. Indeed, the products sold in this sector are generally used for their specific multifunctional properties. For instance, confectionery made with starch derivatives can have tooth-friendly or refreshing properties. These starch derivatives are developed working closely with the customer. Indeed, Tereos Syral provides not only a product, but also a design service and support for establishing the properties. Tereos France works in the same way with its customers for liquid sugars, blends and even SteviaSucres, a patented blend of sugar and stevia extracts, offering low-calorie sweetener solutions that are easy to use for industrial operators.
to harness new biomass sources. Consequently, deinove is developing a new deinococcus bacterial strain making it possible to break down the cellulose and hemicellulose and synthesize high value-added compounds, such as oils for cosmetics or even alternatives to petrochemical products. Tereos is also involved, alongside 10 industry, R&d and finance leaders, in the Futurol project aiming to release technologies and products on the market (enzymes and yeasts) for capitalizing on agricultural and timber coproducts, green residues and any other lignocellulosic biomass.
moving TowarDS new ouTleTS anD proDucTS

Lastly, in its research and development strategy, Tereos is focusing on new outlets for agricultural commodities, notably by working with innovative firms such as deinove, whose research is based on the use of microorganisms making it possible
innovaTion aDDing value To planT proTeinS

Tereos Syral is a founding industrial partner for the Improve project for a pooled innovation platform to develop the value of plant proteins. This project pools public and private capabilities with a view to unlocking the development of plant proteins. once the authorizations have been obtained, an innovation platform is to be set up in Amiens (Picardie, France). Its mission will be to create new features and technologies to enable partners and customers to develop their positioning on the human food and animal feed markets, as well as establishing them on new target markets with strong potential for growth: green chemistry and cosmetics.
penToval: new wayS of aDDing value To coproDucTS

The Pentoval project aims to capitalize on the pentoses - sugars with five carbon atoms contained in coproducts such as wheat bran, sugar beet pulp and sugar cane bagasse. More specifically, this involves extracting and transforming them into high value-added ingredients for the agrifood and cosmetics industries, as well as for plant chemistry. These sugars may be used as a platform molecule for producing resins or bioplastics. Pentovals advantage lies in an all terrain technology that can be used for all plants and their coproducts. Tereos Syral is leading this project, which involves eRcane, Cray-Valley Arkema, the Centre de Valorisation des Glucides, Minakem, the research laboratories Ircelyon, LCA de Toulouse and the paper technology institute FCBA. This four-year project has a total budget of 4.2 million euros.
Safe products
food safety
Our commitments
Each one of the Groups activities ensures that suitable food safety and quality management arrangements are in place, in line with its business lines and customers.
Tereos business is supplying sugars, alcohols, starches and coproducts in line with the expectations of customers and consumers. To achieve this, wherever it operates, the Group ensures food safety and quality for its production, in accordance with recognized and renowned standards. In each of its subsidiaries, Tereos applies a policy to monitor the quality of its products and the satisfaction of its customers with a view to preventing the risks of quality standards slipping, while continuously improving its processes and services. Crisis management procedures are in place for intervention in the event of any product quality, food safety or personal safety incidents.
TereoS france
Tereos France is ISo 9001 certified for all its activities and ISo 22000/ PAS220 for all sugar processing and production-related activities. Food safety for coproducts is IFIS certified.
TereoS benp
The Lillebonne site is ISo 9001, IFIS and EFISC certified.
TereoS guarani
All the sites Tanabi, So Jos, Andrade, Cruz Alta, Mandu, Vertente and Severnia are ISo 9001 certified.
TereoS Syral
All the sites are ISo 9001 certified for quality management. For food safety, Marckholsheim is ISo 22000 certified, and the other sites (Aalst, nesle, Saragossa and Saluzzo) are HACCP and BRC certified. All the sites are GMP certified for animal feed products.
TereoS inDian ocean

The Bois-Rouge sugar refinery and Eurocanne packaging center are ISo 9001 certified, with the process underway for ISo 22000 certification. The Le Gol sugar refinery is ISo 22000 certified, with the process underway for ISo 9001 certification.
TereoS TTD
Tereos TTds activities are ISo 9001 and ISo 22000/PAS 220 certified. Coproducts for animal feed are covered by the GMP framework.
Sustainable production
Our commitments
Environment
Tereos is committed to limiting the environmental impact of its activities each day. on an agricultural and industrial level, optimization work is carried out to limit any emissions and pollution.
From supporting sugar beet and cane producers for sustainable farming to reducing air and water emissions from the facilities, achieving energy savings, optimizing logistics and reducing olfactory pollution, on both agricultural and industrial levels, Tereos strives to develop environmentally-friendly practices. Following the French Grenelle de lEnvironnement initiative and the objectives set for reducing the use of plant protection products, Tereos France is making various commitments. Its agronomy department is part of the pesticide monitoring network and contributes towards the plant health reports for the various regions where Tereos France is present. It is also involved in the taskforce to promote efficient systems for inputs in connection with the Ecophyto 2018 plan.
environmenTally-frienDly agriculTural pracTiceS

Tereos is a driving force for progress in the agricultural sector through its involvement in local agricultural technical centers, such as the French technical sugar beet institute (ITB), the Semsice sugar beet institute in the Czech Republic, the Brazilian sugar cane technical center and eRcane in Runion. In addition, the agronomy departments in the Groups various subsidiaries and divisions support farmers and promote a sustainable and environmentally-friendly approach to agriculture.
work To minimize polluTion

In terms of sourcing raw materials for the facilities, Tereos France and Tereos TTd have been working for a long time to optimize logistics and reduce the number of trucks on the road in various ways: optimizing the quantities of sugar transported per truck by reducing dirt tare and increasing the beets sugar content, and optimizing the average sourcing radius for facilities through sugar beet exchanges between industrial operators.
of the energy consumed by Tereos comes from renewable sources

BAGASSE SToREd FoR CoGEnERATIon AT CRUz ALTA (BRAzIL). TREATMEnT PLAnT AT THE LILLERS SUGAR REFInERy-dISTILLERy (FRAnCE).
50%
For its part, Tereos Syral has adapted its Saragossa site, which is in a city center location, by moving the entrance for the facilitys logistics center, which has made it possible to limit the distances covered for loads within the city. In terms of industrial activities, particular care is taken with olfactory pollution. Tereos TTd has been working on this around the dobrovice distillery for several years, and it has already tested several techniques. This work is continuing to move forward. At Tereos France, five pilot sites Artenay, Boiry, Bucy, Escauduvres and origny sugar refineries have deployed an odor control system, with odor neutralizers fitted around their settling basins.
cogeneraTion anD meThanaTion

Energy consumption and Co2 emissions are also a core focus for the industrial optimization projects that are underway. Runion has been a pioneer in developing bagasse-based electricity production.
The islands two facilities are supplied with energy thanks to the burning of bagasse, while part of the electricity consumed by its residents comes from sugar cane fiber. Brazil is following the same model. For many years, bagasse has been capitalized on for supplying the sugar refineries and distilleries with energy. The Brazilian government is also encouraging sugar producers to develop electricity production to supply the national grid. In Europe, the sugar and starch production activities do not benefit from these sources of bagasse. However, Tereos engineers are working each day to optimize energy consumption levels. In addition, the use of methanation is developing in Europe. Currently, 10,000 tons of oil equivalent are produced each year at the six industrial sites equipped with methanators: Aalst, dobrovice, Lillebonne, Lillers, origny and Saluzzo. Three projects to produce biogas through methanation are being looked into at Artenay, Marckolsheim and dobrovice. Thanks to all these actions, renewable energy repre-
sents 50% of direct energy consumption, compared with 45% in 2009-10. The level of specific direct energy consumption is stable at 1.65 gigajoules per gross ton of raw materials (corresponding to GRI indicator EN3).
waTer
More than 90% of the extracted water used is surface water. In Europe, Tereos units are seeing their specific levels of extracted water consumption decrease from one year to the next. In Mozambique, irrigation is needed for growing sugar cane. All the extracted water is drawn from the zambezi. It is pumped at the surface before the rivers mouth and kept below 0.3% of the rivers minimum flow rate (corresponding to GRI indicator EN8).
four inDuSTrial SiTeS iSo 14001 cerTifieD

Four of the Tereos Groups 37 industrial facilities are ISo 14001 certified for their environmental management standards: Saragossa (Spain), Aalst (Belgium), Boiry (France) and Vertente (Brazil). Located in city centers, the Aalst and Saragossa sites have applied this approach for several years. The Boiry site was certified in december 2011. It is Tereos Frances first industrial site to embark on this approach, which is expected to be extended to include other sites in France. The certification procedure is also underway for the Le Gol facility in Runion.
DirecT energy (conSumpTion in gJ/T)

1.6 1.65 1.65
exTracTeD waTer (Specific conSumpTion in cu.m/T)

1.56 1.53 1.12
2008
2009
2010
2008
2009
2010
Local commitment
CoMPAnHIA dE SEnA HAS FUndEd THE BUILdInG oF WELLS MAkInG IT PoSSIBLE To SUPPLy WATER FoR MARRoMEU. TEREoS GUARAnI HAS RALLIEd To SUPPoRT THE BonE MARRoW donATIon dRIVE.
Our commitments
firm regional focus

A global leader for sugar, starch and alcohol, Tereos is above all a local economic player for the regions where it is based, with a firm commitment to their communities.
Raw materials make up over 75% of Tereos operating expenditure, with its policy based on ensuring close and fair exchanges with local agricultural producers (corresponding to GRI indicator EC6). 42 million tons of agricultural raw materials (sugar beet, sugar cane and cereals) were processed by Tereos in 2011-12, with 60% in Europe, 38% in Brazil and 2% in Mozambique (corresponding to GRI indicator EN1). These raw materials were handled by the Groups 26,500 employees, as well as the many external providers involved in harvesting, transportation, facility maintenance, etc. Through these activities, Tereos is a major local player. In this way, Companhia de Sena, Tereos subsidiary in Mozambique, is the Marromeu districts leading employer and provides income for around half of the people living there. The sugarcane industry in Runion, where Tereos is the only industrial operator, represents 12,000 direct and indirect jobs out of a working population of 220,000 people.
conTribuTing TowarDS local economic DevelopmenT

Through their economic importance, Tereos divisions and subsidiaries are involved locally in various social and environmental actions supporting their communities. In Runion, Tereos Indian ocean has joined the Aliz network, created in 2001 with a view to helping very small, small and medium-size businesses to develop. In this way, around 15 local firms have made a commitment to support and sponsor these small businesses, which are vital to the islands economic fabric. Companhia de Sena is supporting various construction and renovation operations, including funding for building six wells in neighboring areas during the past two years, enabling Marromeu and its surrounding areas to benefit from running water supplies. It is also involved in renovating Marromeus public buildings, from the hospital to the town hall, market square and the districts schools. Tereos Guarani, in partnership with the ministry of education, is rolling out the EJA education program for young people and adults, which aims to provide training to people who were unable to complete their studies so that they can get qualified. In 2011, 222 people benefited from this program.
companhia De Sena anD TereoS guarani commiTTeD To healTh

In Mozambique, Companhia de Sena is working to prevent AIdS. More specifically, it has enabled 7,000 people to be tested, with control centers set up in six areas where the population density is high. Companhia de Sena is also contributing towards the fight against malaria by funding the local radio station, the only widely accessible means of communication for reminding people about all the hygiene and cleanliness guidelines for combating this disease. In addition, it is involved in the Mother-Child operation which aims to provide help and assistance for very young mothers when they have their first child in order to bring down the high mortality rate affecting both mothers and newborns. Tereos Guarani has set up a partnership with the Barretos cancer hospital and rallied its staff around a bone marrow donation campaign. A team from the hospital has visited Tereos Guaranis seven facilities in order to inform staff and encourage them to sign up for the national bone marrow donors register. 20% of them took part in the operation.
TereoS SponSoring The farm founDaTion

Tereos is the second largest sponsor for the subsistence crop projects led by the Farm Foundation, supporting agriculture and rural life around the world. For the third year running, Tereos provided financial support for this foundation. Farms subsistence crop projects support farmers associations, helping them increase their agricultural output through responsible intensification. Five subsistence crop projects are underway: one in Togo, two in Mali, one in Burkina Faso and one in Benin.
TereoS SupporTing The francireS muSeum

Following the inauguration of the dobrovice sugar museum in the Czech Republic in 2010, within the Tereos TTd sugar refinery, Tereos is continuing to promote the history of sugar in France. Indeed, the Group is providing assistance and financial support for the creation of a sugar museum in Francires, in Frances oise region, at the site of a former sugar refinery.
What results has Tereos achieved?

THAnkS To THE PERFoRMAnCES ACHIEVEd By ITS MEn, WoMEn And PRodUCTIon TooLS, CoMBInEd WITH BUoyAnT MARkETS, TEREoS HAS RECoRdEd Good RESULTS.
Tereos saw its revenues climb 25% to 4.4 billion euros, with EBITdA up 26% to 752 million euros. In view of these good results, Tereos paid 99 million euros in additional payments, dividends and interest on company shares to its cooperative growers for Fy 2010-11.
Division results
Sugar beet
Sugar beeT: revenueS (000,000)
1,567 1,208 1,430 1,538 1,450 1,500 1,659
The sugar beet division achieved 10.6% revenue growth, with 1,659 million euros, while adjusted EBITdA rose 14.3% to 343 million euros. The operating margin came to 20.7%, compared with 20% in 2010. The sugar beet division represented 45% of the Groups EBITdA in 2010-11 (50% the previous year).
TereoS france
04/05 05/06 06/07 07/08 (IFRS) 08/09 (IFRS) 09/10 (IFRS) 10/11 (IFRS)
Tereos Frances adjusted EBITdA before price supplements is up 12.2% to 293 million euros. This good operational performance reflects the fact that sales prices rose more quickly than costs, particularly energy-related costs. The strong sales prices seen for sugar on the European market are linked to the historically low levels of stocks.
Sugar beeT: ebiTDa (000,000)

300 187 178
343
173
168
171
04/05
05/06
06/07
07/08 (IFRS)
08/09 (IFRS)
09/10 (A)
10/11 (A)
Tereos France recorded 1,485 million euros in revenues for 2010-11, coming in 10.8% higher than the previous year. This growth reflects the strong level of sugar and alcohol prices on the European market, as well as the 150,000 tons of out-of-quota sugar switched to in-quota. With production for 2010-11 down compared with the previous campaign, sales for the year contracted by 4% for alcohol and sugar. The contraction in sugar sales factors in a sharp drop in out-of-quota volumes (-25%), combined with a slight increase for in-quota sales (+2%).
TereoS TTD
Tereos TTds revenues are up 8.9% to 175 million euros. once again, robust prices made it possible to offset the contraction in sugar sales (-6%), while alcohol sales saw a slight increase (+2%). Tereos TTds adjusted EBITdA came to 50 million euros, up 28.5%.
2010-11 revenueS by raw maTerial 27% Sugar cane 38% Sugar beet
2010-11 ebiTDa by raw maTerial 34% Sugar cane 45% Sugar beet
2010-11 neT income by raw maTerial 22% Sugar cane 54% Sugar beet
35% cereals
21% cereals
24% cereals
Cereals
cerealS: revenueS (000,000)
1,615 1,363 1,500 1,541
For the cereals division, revenues are up 24.9% to 1,541 million euros, with adjusted EBITdA climbing 12.2% to 157 million euros. The operating margin came to 10.2%, compared with 11.8% in 2010. The cereals division represented 21% of the Groups EBITdA in 2010-11 (24% the previous year).
million euros, with this contraction due to an increase in sales prices that did not make it possible to fully offset the rise in cereal and energy prices over the year.
TereoS benp anD Dvo

Revenues for Tereos Benp / dVo totaled 277 million euros, up 11.9%, with this growth driven by the good level of prices on the European market, while the volumes sold were slightly lower (-5%). Adjusted EBITdA is up 85% to 37 million euros. This strong rate of growth factors in the buoyant sales prices recorded, as well as the good industrial performance by the various units following a year marked by operational difficulties in 2009-10.
168
04/05
217
05/06
381
TereoS Syral
07/08 (IFRS) 08/09 (IFRS) 09/10 (IFRS) 10/11 (IFRS)
06/07
cerealS: ebiTDa (000,000)

114
179 145
157
5
04/05
12
05/06
29
06/07 07/08 (IFRS) 08/09 (IFRS) 09/10 (A) 10/11 (A)
Tereos Syral recorded 1,264 million euros in revenues for 2010-11, coming in 28.2% higher than the previous year. This growth primarily reflects the increase in sales prices, set against a backdrop of high cereal prices, with just over 60% for starches, around 20% for sweeteners and approximately 15% for specialties. Volumes remained stable, with 1.3 million tons of starch products and 180,000 m3 of alcohol and bioethanol, while the volume of coproduct sales increased by one third. Tereos Syrals adjusted EBITdA is down 4.4% to 120
Sugar cane
Sugar cane: revenueS (000,000)
787 432 496 1,180 310 142
04/05 05/06 06/07 07/08 (IFRS) 08/09 (IFRS) 09/10 (IFRS) 10/11 (IFRS)
357
Sugar cane: ebiTDa (000,000)

157 88 34
04/05 05/06
255
The sugar cane divisions revenues totaled 1,180 million euros, a 50% increase, while adjusted EBITdA rose 62.4% to 255 million euros. The operating margin represents 21.6%, compared with 20% for 2010. The sugar cane division generated 34% of the Groups EBITdA in 2010-11 (26% the previous year). In view of the time-lag with campaign dates, the accounts for the sugar cane business at 30 September reflect the companies earnings over the last six months of the 2010-11 campaign and the first six months of the 2011-12 campaign.
This growth primarily reflects the strong sugar prices and the significant increase in alcohol prices in Brazil, as well as the consolidation of the Vertente and Mandu facilities over 12 months. Tereos Guaranis adjusted EBITdA is up 49% to 204 million euros, thanks to an improvement in margins in Brazil linked to rising sales prices, combined with an upturn in operational results in Mozambique.
TereoS inDian ocean

Tereos Indian ocean groups together the sugar activities on Runion. Its revenues are up 158% to 235 million euros, driven primarily by the consolidation of Quartier Franais sugar assets over 12 months. Adjusted EBITdA came to 51 million euros, an increase of 88%.
TereoS guarani
Tereos Guarani consolidates the sugar and alcohol activities in Brazil and Mozambique, since Companhia de Sena is a subsidiary of Tereos Guarani. Tereos Guarani recorded 945 million euros in revenues for 2010-11, 36% higher than the previous year.
61
69
74
06/07
07/08 (IFRS)
08/09 (IFRS)
09/10 (A)
10/11 (A)
conDenSeD conSoliDaTeD balance SheeT aT 30 SepTember 2011 (000,000)
aSSeTS
2010/11
4,071.3 1,968.2 211.7 6,251.2
2009/10
3,965.7 1,660.6 189.0 5,815.3
liabiliTieS
Shareholders equity non-current liabilities Current liabilities other liabilities
(1)
2010/11 2009/10
2,330.3 1,840.3 1,919.9 160.6 6,251.2 2,194.1 1,573.2 1,894.1 153.8 5,815.3
Consolidated earnings
non-current assets Current assets other assets
ToTal
ToTal
(1) Corresponds to the consolidated entitys shareholders equity and cooperative capital.
Groups consolidated financial statements

As the majority company, the SdA cooperative is responsible for preparing the consolidated financial statements and ensuring their certification by the auditors. It is the Tereos Groups consolidating entity. Since Fy 2007-08, the consolidated financial statements have been drawn up in accordance with IFRS.
aDDiTional paymenTS anD DiviDenDS

Additional payments have been increasing significantly for the past two years. For the 2011 campaign, they represented a total of 65.7 million euros, compared with 50.1 million euros in 2010 and 18.1 million euros in 2009. After the payment of additional payments and taking into consideration all non-recurring items under operating income, financial expenses and corporate income tax, net income came to 246.2 million euros for 2011, compared with 146.6 million euros in 2010.
income STaTemenT
The SdA Groups consolidated revenues rose from 3,615 million euros in 2010 to 4,531 million euros in 2011. The SdA Groups adjusted EBITdA before additional payments came to 763.6 million euros for 2011, up from 166 million euros in 2010. Current operating income before additional payments also reveals significant growth of 120 million euros, up from 323.1 million euros in 2010 to 443.4 million euros at 30 September 2011. Financial expenses totaled 124.9 million euros for 2011, compared with 137.5 million euros the previous year.
in 2010 to 6,251.2 million euros in 2011, primarily due to the impact of the following elements: External growth, and more specifically the full-year consolidation of Quartier Franais in Runion and Mandu in Brazil. Partnership agreement set up with the Brazilian oil firm Petrobras, resulting in a capital contribution of 85 million euros this year. 246 million euros in income recorded for Fy 2011.
balance SheeT
The SdA Groups consolidated balance sheet at 30 September 2011 shows a total of 2,330.3 million euros in cooperative capital and shareholders equity for the consolidated group, compared with 2,194.1 million euros in 2010. The balance sheet total reflects a strong rate of growth, up from 5,815.3 million euros
conSoliDaTeD revenueS (000,000)

4,531 3,757 2,277 2,378 1,729 939 1,710 1,757 3,409 3,615
conSoliDaTeD ebiTDa before aDDiTional paymenTS (000,000)

764 598 368 266 440
263 126 151
229
293
01/02
02/03
03/04
04/05
05/06
06/07
07/08 (IFRS)
08/09 (IFRS)
09/10 (IFRS)
10/11 (IFRS)
01/02
02/03
03/04
04/05
05/06
06/07
07/08 (IFRS)
08/09 (IFRS)
09/10 (A)
10/11 (A)
Sugar beet revenue paid to cooperative growers

despite the average level of agricultural yield for the 2010-11 campaign, the years sugar beet revenue figure shows a clear improvement. This progress has been made possible by the good level of prices for sugar, alcohol and, to a lesser extent, ethanol, combined with the reclassification of out-of-quota sugar as in-quota. The changes to the rules for determining alcohol-ethanol beet prices have also contributed towards this improvement. All of these elements - additional payments, dividends and interest on shares - paid by Tereos represent a combined total of 99 million euros.
Sugar beeT revenue

The average revenue per hectare for Tereos Group cooperative growers came to 2,620 euros for 2010-11, up 7.5% in relation to 2009-10. In addition, revenues from dividends totaled 180 euros per hectare, with the surrender of pulp generating 114 euros per hectare (excluding Sica members).
In this way, the total sugar beet revenue averaged out at 2,913 euros per hectare for 2010-11, compared with 2,498 euros per hectare in 2009-10. These figures do not take into consideration the sugar beet singlepayment rights (SPRs) received by the cooperative growers. The total financial benefits paid by Tereos came to 8.10 euros per ton at 16 for contract sugar beet and 678 euros per hectare for 2010-11.
aDDiTional paymenTS anD inTereST on company ShareS

In view of Tereos Frances earnings for Fy 2010-11, an additional payment of 4 euros per ton at 16 was paid out to the cooperative growers on 30 September 2011 for all the contracted sugar beet (sugar rights, alcohol, ethanol, other uses, export sugar and beet reclassified as in-quota sugar beet). Furthermore, on account of the level of in-quota sugar sales and the inter-industry agreement, an additional payment was paid on the in-quota sugar beet. In February 2012, the cooperative growers received an additional 3 euros per ton at 16 from the sugar quota for Fy 2010-11. As in previous years, all the sugar beet under contract also benefited from interest on company shares equivalent to 0.30 euros per ton at 16.
breakDown of TereoS Sugar beeT purchaSeS in 2010-11 (%)

5% 6% 1%
l in-quota sugar beet l reclassified sugar beet* l alcohol-ethanol sugar beet l export sugar beet l other use sugar beet l Surplus sugar beet after
financial benefiTS paiD To TereoS cooperaTive grower (/ha) 678
298 166 121 162 119
25%
7%
56%
compensation
05/06
06/07
07/08
08/09
09/10
10/11
* The reclassification of out-of-quota sugar as in-quota sugar made it possible to capitalize on 16% of the contract sugar beet for alcohol-ethanol, export sugar, other uses and surplus beet as paid sugar beet based on the price for beet from the sugar quota. They also benefit from the additional payments.
priceS for TereoS Sugar beeT purchaSeS in 2010-11 (/T)

33.23 30.83 29.10 26.45 23.39
DiviDenDS
In February 2012, the cooperative growers received the dividends from Tereos for Fy 2009-10, representing an average of 2.15 euros per ton of sugar beet under the alcohol-ethanol contract and sugar quota. For Fy 2010-11, Tereos will be paying out a total dividend of 14 million euros, drawn from Tereos subsidiaries through Tereos Participations. These higher dividends will be received in February 2013.
average Sugar beeT revenue for TereoS group cooperaTive growerS*, incluDing DiviDenDS anD pulp revenueS (/ha)
2,937 3,071 2,737 2,767 2,530 2,447 2,380 2,339 2,498 2,913
22.45
In-quota sugar beet
Reclassified Alcoholsugar beet ethanol sugar beet
Export sugar beet
other use sugar beet
Surplus sugar beet
01/02
02/03 03/04 04/05 05/06 06/07(1) 07/08(1) 08/09(1) 09/10(1) 10/11(1)
The average sugar beet price for 2010-11 came to 31.10 euros/ton at 16 before dividends and pulp revenues.
* Union Sucre thanol cooperatives (excl. SDHF) until 2004-05, all cooperatives since 2005-06. (1) Sugar beet single-payment rights are not included in these revenues.
Consolidated financial statements

SDa group conSoliDaTeD balance SheeT aT 30 SepTember 2011 (000)
ASSETS
Goodwill Intangible assets Biological assets Property, plant and equipment Investments in associates Available-for-sale securities other non-current financial assets deferred tax assets Tax assets due other non-current assets NON-CURRENT ASSETS Inventories Trade receivables other current financial assets Current tax assets due Cash and cash equivalents other current assets CURRENT ASSETS non-current assets held for sale
2010/2011
1,226,215 147,299 204,788 2,129,091 65,647 13,082 82,337 197,441 28 5,396 4,071,324 710,540 554,322 297,367 12,294 240,844 152,810 1,968,178 211,675 6,251,177
2009/2010
1,254,943 151,976 177,450 2,033,430 85,663 14,517 72,162 172,393 31 3,131 3,965,695 589,731 467,580 284,688 14,622 234,202 69,757 1,660,580 189,014 5,815,289
TOTAL ASSETS EQUITY AND LIABILITIES

Additional paid-in capital Reserves and retained earnings EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT non-controlling interests TOTAL EQUITY Cooperative capital COOPERATIVE CAPITAL AND EQUITY Long-term borrowings Provisions for pensions and other post-employment benefits other long-term provisions deferred tax liabilities non-current tax liabilities due other non-current financial liabilities other non-current liabilities NON-CURRENT LIABILITIES Short-term borrowings other short-term provisions other current financial liabilities Trade payables Current tax liabilities due other current liabilities CURRENT LIABILITIES Liabilities associated with assets held for sale
2010/2011
2,545 673,482 676,027 1,638,615 2,314,643 15,691 2,330,333 1,479,750 26,039 29,061 52,299 0 222,341 30,836 1,840,326 769,136 3,835 434,997 629,346 12,682 69,876 1,919,872 160,646 6,251,177
2009/2010
2,545 590,739 593,284 1,585,153 2,178,438 15,702 2,194,139 1,197,086 21,026 39,607 43,989 0 242,930 28,610 1,573,248 961,073 14,719 395,016 473,309 15,797 34,202 1,894,116 153,786 5,815,289
TOTAL EQUITY AND LIABILITIES
Extract from the consolidated financial statements of the Sucreries et Distilleries de lAisne Group, the consolidating company. The basis for consolidation for the SDA Cooperative since 1994-95 includes Tereos, which groups together the industrial activities contributed by the SDA and Artenay cooperatives. The consolidated financial statements of the Sucreries et Distilleries de lAisne cooperative at 30 September 2011 have been drawn up in accordance with the legislative and regulatory provisions applicable for the consolidation of accounts for commercial companies and state enterprises. They are presented in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. The full versions of these documents are available on request from Tereos registered office.
SDa group conSoliDaTeD comprehenSive income STaTemenT (000)

2010/2011 CONTINUING OPERATIONS
Revenue Change in inventories of finished products Purchases consumed External charges Payroll expenses duties and tax depreciation, amortization and impairments Provisions other recurring operating income other recurring operating expenses RECURRING OPERATING INCOME BEFORE ADDITIONAL PAYMENTS Additional payments RECURRING OPERATING INCOME other non-recurring operating income other non-recurring operating expenses NET INCOME FROM OPERATING ACTIVITIESV Financial expenses Financial income NET FINANCIAL EXPENSE Income tax expense Share in net income of associates NET INCOME FROM CONTINUING OPERATIONS DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE net income from discontinued operations and assets held for sale 4,531,124 90,668 -2,609,138 -756,304 -460,743 -71,330 -334,397 4,632 167,728 -118,810 443,431 -65,600 377,831 41,227 -38,907 380,151 -507,195 382,316 -124,878 -19,717 8,211 243,767 2,402 2,402 246,169 3,615,221 127,658 -2,092,299 -661,772 -406,141 -59,824 -288,124 664 161,944 -74,205 323,121 -50,199 272,922 67,989 -113,819 227,093 -334,627 197,160 -137,467 49,111 4,358 143,095 3,494 3,494 146,589
2009/2010
NET INCOME
OTHER COMPREHENSIVE INCOME Change in fair value of available-for-sale financial assets Change in fair value of hedging instruments Change in unrealized foreign exchange gains and losses Income tax relating to other comprehensive income items OTHER COMPREHENSIVE INCOME / EXPENSE, NET OF TAX
2,673 -72,125 -74,199 22,335 -121,316 124,853 62,724 62,129
-10,788 33,629 8,002 30,843 177,431 49,791 127,640
TOTAL COMPREHENSIVE INCOME

of which, attributable to owners of the parent of which, attributable to non-controlling interests
Consolidated companies
Name conSoliDaTing parenT company SUCRERIES ET dISTILLERIES dE LAISnE fully conSoliDaTeD companieS ACoR & TEREoS IBERIA, S.A. AGRICoLA RodEIo AndRAdE ACAR E LCooL AndRAdE AGRICULTURA LTdA AUSTRAL dVELoPPEMEnT BELLonIE ET BoURdILLon SUCCESSEURS BoUGUET PAU BoURBon PLASTIQUES BIo-THAnoL noRd PICARdIE CEInERAy CoMPAGnIE BoURBon PLASTIQUES CoMPAnHIA dE SEnA CoMPAnHIA EnERGTICA So JoS CRUz ALTA PARTICIPACoES dVELoPPEMEnT PATRIMoInE dE LEST dVELoPPEMEnT PATRIMoInE InVESTISSEMEnT ConSEIL dILMooR dISTILLERIES AGRICoLES dE SAInTE-LUCE dISTILLERIE RIVIRE dU MAT dISTILLERIE dE SAVAnnA ERCAnE EURoCAnnE FAUConnIER FInAnCIRE dES HAUTS dE FRAnCE FRAnCE FondAnTS GnIE CIVIL ET TRAnSPoRTS PUBLICS GIE UTILITS MARCkoLSHEIM GRoUPE QUARTIER FRAnAIS GRAnoCHART GUARAnI HUBAU HUnTInG LodGE SPIRITS LIMITEd LES ARUMS 1 LES ARUMS 2 LES ARUMS 3 LES BAnIAnS LoIRET ET HAEnTJEnS LoIRET HAEnTJEnS ESPAGnE, S.A. MASCAREIGnES TRAnSPoRT InTERnATIonAL MASCARIn QFL SP BR BR BR F F F F F F F M BR BR F F I F F F F F F F F F F F F BR F Uk F F F F F SP F F F Marketing of sugar Farmland Production and marketing of cane sugar and alcohol Farmland Holding company Production and marketing of rums and derivatives Purchase, sale, brokerage and representation of all agrifood products Production and sale of plastic products Production and marketing of bioethanol, wheat and sugar beet Brokerage and representation Brokerage and representation Production and marketing of cane sugar Production and marketing of cane sugar and alcohol Holding company Real estate development Real estate management and transactions Production of alcohols and spirits Production and marketing of rums and derivatives Rum distillery Rum distillery Agronomic research Marketing of sugar Production of alcohols and spirits Holding company Production and marketing of confectionery sugars Transport Production of industrial utilities Holding company Brokerage Production and marketing of cane sugar and alcohol Trade in grains and supplies distribution of spirits Leasing and management of unfurnished buildings Leasing and management of unfurnished buildings Leasing and management of unfurnished buildings Real estate development Marketing of sugar and molasses Brokerage and representation International freight forwarder Production and marketing of cane sugar Holding company 483 894 101 303 159 859 393 415 138 320 815 764 389 430 331 378 928 790 310 837 455 499 472 660 480 034 198 303 150 320 487 619 975 310 850 391 320 180 409 349 651 513 616 220 034 414 141 630 383 630 969 418 328 753 444 859 599 300 648 292 332 618 883 326 461 605 518 743 070 518 074 646 518 074 935 411 891 567 854 800 315 401 194 386 310 863 311 491 114 534 F Sugar beet collection 303 628 499 Country Business SIREN code
Parent Yearcompany Tereos end* interest (%) interest (%)
30/09
30/09 31/03 31/03 31/03 31/12 31/12 31/12 31/12 30/09 31/12 31/12 31/03 31/03 31/03 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/08 31/08 30/09 31/07 30/09 31/12 31/12 31/03 30/06 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12
26% 18% 12% 12% 42% 25% 42% 25% 27% 24% 28% 13% 18% 18% 29% 42% 25% 25% 42% 42% 24% 24% 42% 43% 17% 43% 17% 42% 19% 18% 70% 42% 42% 42% 42% 42% 23% 23% 24% 42% 42%
60% 43% 29% 29% 98% 60% 98% 59% 63% 56% 65% 31% 43% 43% 68% 98% 59% 60% 98% 98% 56 % 56% 98% 100% 40% 100% 41% 98% 45% 43% 98% 98% 98% 98% 98% 53% 53% 56% 98% 98%
Name QFm QFR QuARTIeR FRAnCAIS AGRO-InduSTRIe QuARTIeR FRAnCAIS AmnAGemenT QuARTIeR FRAnCAIS neRGIe QuARTIeR FRAnCAIS SPIRITeuX QuARTIeR FRAnCAIS SPIRITueuX euROPe QuARTIeR FRAnCAIS SPIRITueuX OuTRe-meR ReudIS RunIOn BOISSOn RhumS RunIOn SBAnA SCCV RSIdenCe deS ARumS SCCV Le TRGOR SCI BeAuLIeu 2 SCI CLOS SAInT JeAn SCI COuR de BeAuLIeu SCI mAISOnS BeAuLIeu SCI mB2 SCI SAInT-BenOT 1 SCI SAInT-BenOT 2 SCI deS VAVAnGueS SenA hOLdInG LImITed SenA LIneS SICRe SOCIT AGRICOLe du nORd-eST SOCIT dneRGIe LCTRIQue de LeST SOCIT dThAnOL de SynThSe SOCIT GnRALe dInVeSTISSemenTS deS mASCAReIGneS SOCIT mARROmeu LImITed SOCIT nAVImPeX SOCIT SuCRIRe du QuARTIeR FRAnCAIS SOCIT VIChySSOISe dAPRITIFS nOn ALCOOLISS SOFIPA SuCRe AuSTRAL SuCReRIe de BOIS-ROuGe SuCRIRe de LA RunIOn SyRAL ASIA SyRAL BeLGIum SyRAL dO BRASIL COmeRCIO de AmIdOS SyRAL hALOTeK SyRAL IBeRIA SyRAL ITALIA SyRAL uK TeReOS TeReOS AGRO-InduSTRIeS TeReOS ALCOOLS TeReOS APPRO TeReOS BenP
Country Business F F F F F F F F F F F F F F F F F F F F F F Im m F F F F F Im F F F F F F F hK BeL BR BR SP I uK F F F F F holding company holding company holding company holding company holding company holding company holding company holding company Sale of products and materials for food professions marketing of rum and derivatives marketing of molasses and alcohols marketing and distribution of agrifood products Leasing and management of unfurnished buildings Construction and sale Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development management of real estate holdings holding company Shipping company Coffee roasting Sugar cane transportation holding company Synthetic ethanol Production, processing and distribution holding company Coconut supplies and trade holding company marketing of non-alcoholic drinks management of real estate holdings holding company Production of cane sugar Production of cane sugar marketing of starch products Production and marketing of starch products marketing of starch products Production and marketing of starch products Production and marketing of starch products marketing of starch products Production and marketing of starch products Sugar beet collection and processing holding company Production and marketing of alcohol wholesale grain marketing Production and marketing of sugar beet and wheat bioethanol
SIREN code 491 076 667 517 986 352 391 175 353 490 724 614 487 620 007 483 726 287 483 878 245 310 864 350 410 926 901 347 771 354 310 865 043 444 060 420 495 045 965 501 015 598 508 137 262 517 457 768 500 830 055 500 858 592 508 135 613 524 820 917 524 821 048 394 058 382 383 468 196 315 160 143 321 460 602 662 035 138 349 073 841 302 177 563 310 850 870 440 792 257 317 613 842 315 281 832 315 253 922 480 034 172 407 948 926 520 790 825 449 929 249 533 055 042 480 891 407
Parent Yearcompany end* interest (%) 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/12 31/03 31/03 31/12 31/12 31/12 30/09 31/12 31/03 31/12 31/12 31/12 31/12 31/12 31/12 31/12 30/09 30/09 30/09 31/03 30/09 30/09 30/09 30/09 30/09 30/09 30/09 30/09 42% 42% 42% 42% 42% 42% 42% 42% 25% 42% 39% 42% 42% 42% 42% 42% 29% 29% 42% 42% 42% 24% 14% 13% 42% 24% 42% 27% 42% 14% 23% 42% 42% 23% 24% 24% 24% 27% 27% 27% 18% 27% 27% 27% 43% 30% 34% 43% 27%
Tereos interest (%) 98% 98% 98% 98% 98% 98% 98% 98% 59% 98% 91% 98% 98% 98% 98% 98% 68% 68% 98% 98% 98% 56% 32% 31% 98% 56% 98% 63% 98% 32% 53% 98% 98% 53% 56% 56% 56% 63% 63% 63% 43% 63% 63% 63% 100% 71% 80% 100% 63%
Name TeReOS COPROduITS TeReOS deuTSChLAnd Gmbh. TeReOS dO BRASIL PARTICIPAeS Ltda. TeReOS dVO TeReOS eu TeReOS euROPe TeReOS FInAnCe TeReOS FRAnCe TeReOS InTeRnACIOnAL TeReOS ITALIA TeReOS LuXemBOuRG TeReOS OCAn IndIen TeReOS PARTICIPATIOnS TeReOS SenA LImITed TeReOS STOCKAGe TeReOS SuCReS TeReOS SyRAL TeReOS SyRAL uK TeReOS TTd TeReOS uK TRAnSIT STOCKAGe mAnuTenTIOn TReGOR PATRImOIne SCI unIOn SdA COLLeCTe unIOn SuCRe ThAnOL zAC mAPOu
Country Business F G BR F BeL F F F BR I L F F Im F F F uK Cz uK F F F F F
SIREN code
Parent Yearcompany end* interest (%) 30/09 30/09 31/03 30/09 30/09 30/09 30/09 30/09 31/03 30/09 30/09 30/09 30/09 30/06 30/09 30/09 30/09 30/09 30/09 30/09 30/09 30/09 30/06 31/03 31/12 43% 43% 30% 27% 27% 43% 43% 38% 27% 43% 43% 24% 39% 18% 43% 43% 27% 27% 24% 43% 43% 42% 79% 57% 23%
Tereos interest (%) 100% 100% 71% 63% 63% 100% 100% 90% 63% 100% 100% 56% 93% 43% 100% 100% 63% 63% 58% 100% 100% 98% 53%
marketing and trade in derivative products 424 388 643 for the sugar industry marketing of sugar holding company
Production and marketing of grain alcohol 490 700 895 Consulting for agroindustrial companies Cash management 495 061 095 Cash management 423 607 886 holding company 533 247 979 holding company marketing of sugar Reinsurance holding company 310 864 269 holding company 444 413 058 Financial company Sugar storage 410 379 150 marketing of sugar 388 255 853 Production and marketing of starch 403 138 225 products Production of alcohols and spirits Production and marketing of beet sugar marketing of sugar Sugar storage 330 376 310 Construction and sale 525 368 080 Grain collection 448 767 962 Sugar beet collection 454 087 032 management of real estate holdings 321 327 280
ProPortionately consolidated comPanies BGhIn meIJI mAGnOLIA eu LLC SedALCOL eu SedALCOL FRAnCe SedALCOL uK SedAmyL SedAmyL SeRVICeS TeReOS PuReCIRCLe SOLuTIOnS unIGLAd InGRedIenTI S.R.L. uSInA VeRTenTe Ltda. equity affiliates BRIe ChAmPAGne ThAnOL COmASuCAR COmPAGnIe TheRmIQue du GOL InVeSTISSemenTS FOnCIeR RunIOn LeSAFFRe FRReS ReFIneRA de OLmedO, S.A. SO JOS AGRICuLTuRA SOCIT euROPenne deS mLASSeS SOCIT FOnCIRe de LeST SOLeO GenIPA SuCRIRe de mASCAReIGneS LTd SuCRIRe de nORmAndIe F e F F F eS BR F F F m F Production of grain alcohol and bioethanol Packaging and marketing of sugar energy production Real estate development Sugar production Sugar refining Farmland holding company Real estate development energy production holding company Sugar production 344 395 033 383 599 214 495 014 029 457 508 604 429 856 974 499 486 215 508 352 093 402 499 321 31/08 31/12* 31/12 30/06 31/08 30/09 31/03 30/09 31/12 31/12 30/06 30/09 17% 14% 15% 10% 15% 21% 6% 14% 12% 8% 10% 11% 40% 33% 35% 24% 34% 50% 14% 34% 29% 18% 23% 25% F BOS BeL F uK I I F I BR marketing of specialty sugars Production of starch products Production of alcohols and spirits Production of grain alcohol Production of grain alcohol Production and marketing of starch products Provision of services Production and marketing of specialty sugars marketing and distribution of starch products Production and marketing of cane sugar 349 707 646 413 433 665 527 914 352 30/09 31/12 30/09 30/09 30/09 30/09 30/09 30/09 30/09 31/12 21% 13% 13% 13% 13% 13% 13% 21% 13% 9% 50% 31% 31% 31% 31% 31% 31% 50% 32% 21%
* For newly created companies or companies whose financial year ends at 31 december, 31 march or 30 April, an interim position at 30 September 2011 has been taken into account.
1/ SuGAR BeeT 2/ COOPeRATIVe GROweRS And SeCTOR mAnAGeR 3/ QuALITy AnALySIS LABORATORy AT neSLe STARCh unIT (FRAnCe)
4/ mARROmeu SuGAR ReFIneRy LABORATORy (mOzAmBIQue) 5/ wheAT 6/ SuGAR CAne 7/ CRuz ALTA SuGAR ReFIneRy COnTROL ROOm (BRAzIL) 8/ COnnAnTRe SuGAR ReFIneRy (FRAnCe)
2011 ANNUAL REPORT
Global player
Photo credits: Philippe Abergel, Patrick Bogner, Cultura RF/Getty Images, Fotolia, Jacques Grison, iStock, Christian Kempf, Le Boterve, Petrobras, Laurent Robert, Ocean/Corbis, Steve Satushek/Getty Images, Thinkstock 2012. Illustrations: Vronique Bn. Design and production: This activity report is printed on FSC-certified Creator Silk paper, with all fibers sourced from responsibly managed forests. Plant-based inks created using renewable raw materials have been used. The printer is ImprimVert and FSC certified; it is committed to concrete ongoing actions to reduce polluting emissions, while saving natural resources.
Tour Lilleurope 11, parvis de Rotterdam 59777 Lille France Tel.: 33 (0)3 28 38 79 30
www.tereos.com

Rapp 2011 TEREOS GB

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2011 ANNUAL REPORT

for sugar, starch and alcohol

message from the chairmen

Tereos, a global player

worldwide Alcohols producer No. in Europe producer in Brazil No.

Starches producer No. in Europe

Tereos - 2011 Annual report /01

Message from the chairmen

Competitiveness of sugar beet underpinning Tereos development

Developing STarch inTernaTionally anD expanDing The porTfolio of raw maTerialS

PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE BoARd

02 / Tereos - 2011 Annual Report

effecTively Developing value Through wheaT proDucTion

THIERRY LECOMTE CHAIRMAn oF THE SUPERVISoRy BoARd

Tereos - 2011 Annual report /03

inveSTing To improve brazilian proDucTion

STrong growTh in financial reSulTS

cooperaTive STaTuS, a viTal aSSeT

confirming iTS poSiTionS in The inDian ocean anD africa

PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE BoARd

THIERRY LECOMTE CHAIRMAn oF THE SUPERVISoRy BoARd

04 / Tereos - 2011 Annual Report

Tereos - 2011 Annual report /05

06 / Tereos - 2011 Annual Report

Sugar refinery Distillery Packaging Refining Starch unit Electricity

Tereos - 2011 Annual report /07

Modern vision of cooperation

accompanying The SecTorS conSoliDaTion

moDern governance STrucTure

upSTream organizaTion STreamlineD

08 / Tereos - 2011 Annual Report

Tereos - 2011 Annual report /09

Group organized around its raw materials

Sugar beet processing

Sugar cane processing

Tereos Ocan Indien

10 / Tereos - 2011 Annual Report

limiTeD global STockS

in europe, DemanD iS noT being covereD by quoTaS anD imporTS

Tereos - 2011 Annual report /11

European ethanol prices undermined by American exports

conTinueD progreSS on The european markeT

european markeT for TraDiTional alcoholS

eThanol anD peTrol priceS (e/m3) petrol

12 / Tereos - 2011 Annual Report

Growth in emerging countries

china becomeS The leaDing markeT for STarch proDucTS

european STarch proDucT markeT (000 TonS)

Source: European Starch Industry Association (AAF)

Tereos - 2011 Annual report /13

What does Tereos produce?

14 / Tereos - 2011 Annual report

Wide range of products

five raw materials

TONS Of CEREALS (WHEAT AND MAIzE)

Tereos - 2011 Annual report /15

2,900 staff 17industrial sites 19.of sugar 3 million tons

16 / Tereos - 2011 Annual report

Washing Slicing Diffusion

Refining Evaporation Crystallization Pulps Centrifugation Drying

Scums water Low-purity syrup Dilution

Vinasse Distillation Dehydration

Rectification Dehydration Bioethanol Traditional alcohols Absolute alcohol