Rapp_2011_TEREOS_GB

Global playerfor sugar, starch and alcohol

2011 ANNUAL REPORT

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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

1 2 3

4 5

6 7 8

Name Country Business SIREN codeYear-end*

Parent company

interest (%)

Tereos interest

(%)

TeReOS COPROduITS F marketing and trade in derivative products for the sugar industry

424 388 643 30/09 43% 100%

TeReOS deuTSChLAnd Gmbh. G marketing of sugar – 30/09 43% 100%

TeReOS dO BRASIL PARTICIPAÇÕeS Ltda.

BR holding company – 31/03 30% 71%

TeReOS dVO F Production and marketing of grain alcohol 490 700 895 30/09 27% 63%TeReOS eu BeL Consulting for agroindustrial companies – 30/09 27% 63%TeReOS euROPe F Cash management 495 061 095 30/09 43% 100%TeReOS FInAnCe F Cash management 423 607 886 30/09 43% 100%TeReOS FRAnCe F holding company 533 247 979 30/09 38% 90%TeReOS InTeRnACIOnAL BR holding company – 31/03 27% 63%TeReOS ITALIA I marketing of sugar – 30/09 43% 100%TeReOS LuXemBOuRG L Reinsurance – 30/09 43% 100%TeReOS OCéAn IndIen F holding company 310 864 269 30/09 24% 56%TeReOS PARTICIPATIOnS F holding company 444 413 058 30/09 39% 93%TeReOS SenA LImITed Im Financial company – 30/06 18% 43%TeReOS STOCKAGe F Sugar storage 410 379 150 30/09 43% 100%TeReOS SuCReS F marketing of sugar 388 255 853 30/09 43% 100%TeReOS SyRAL F Production and marketing of starch

products403 138 225 30/09 27% 63%

TeReOS SyRAL uK uK Production of alcohols and spirits – 30/09 27% 63%TeReOS TTd Cz Production and marketing of beet sugar – 30/09 24% 58%TeReOS uK uK marketing of sugar – 30/09 43% 100%TRAnSIT STOCKAGe mAnuTenTIOn F Sugar storage 330 376 310 30/09 43% 100%TReGOR PATRImOIne SCI F Construction and sale 525 368 080 30/09 42% 98%unIOn SdA COLLeCTe F Grain collection 448 767 962 30/06 79% –unIOn SuCRe éThAnOL F Sugar beet collection 454 087 032 31/03 57% –zAC mAPOu F management of real estate holdings 321 327 280 31/12 23% 53%

ProPortionately consolidated comPanies

BéGhIn meIJI F marketing of specialty sugars 349 707 646 30/09 21% 50%mAGnOLIA eu LLC BOS Production of starch products – 31/12 13% 31%SedALCOL eu BeL Production of alcohols and spirits – 30/09 13% 31%SedALCOL FRAnCe F Production of grain alcohol 413 433 665 30/09 13% 31%SedALCOL uK uK Production of grain alcohol – 30/09 13% 31%SedAmyL I Production and marketing of starch

products– 30/09 13% 31%

SedAmyL SeRVICeS I Provision of services – 30/09 13% 31%TeReOS PuReCIRCLe SOLuTIOnS F Production and marketing of specialty

sugars527 914 352 30/09 21% 50%

unIGLAd InGRedIenTI S.R.L. I marketing and distribution of starch products

– 30/09 13% 32%

uSInA VeRTenTe Ltda. BR Production and marketing of cane sugar – 31/12 9% 21%

equity affiliates

BRIe ChAmPAGne éThAnOL F Production of grain alcohol and bioethanol 344 395 033 31/08 17% 40%COmASuCAR e Packaging and marketing of sugar – 31/12* 14% 33%COmPAGnIe TheRmIQue du GOL F energy production 383 599 214 31/12 15% 35%InVeSTISSemenTS FOnCIeR RéunIOn F Real estate development 495 014 029 30/06 10% 24%LeSAFFRe FRèReS F Sugar production 457 508 604 31/08 15% 34%ReFIneRÍA de OLmedO, S.A. eS Sugar refining – 30/09 21% 50%SãO JOSé AGRICuLTuRA BR Farmland – 31/03 6% 14%SOCIéTé euROPéenne deS méLASSeS F holding company 429 856 974 30/09 14% 34%SOCIéTé FOnCIèRe de L’eST F Real estate development 499 486 215 31/12 12% 29%SOLeO GenIPA F energy production 508 352 093 31/12 8% 18%SuCRIèRe de mASCAReIGneS LTd m holding company – 30/06 10% 23%SuCRIèRe de nORmAndIe F Sugar production 402 499 321 30/09 11% 25%

* 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.


Parent company

interest (%)

Tereos interest

(%)

QFm F holding company 491 076 667 31/12 42% 98%QFR F holding company 517 986 352 31/12 42% 98%QuARTIeR FRAnCAIS AGRO-InduSTRIe F holding company 391 175 353 31/12 42% 98%QuARTIeR FRAnCAIS AménAGemenT F holding company 490 724 614 31/12 42% 98%QuARTIeR FRAnCAIS éneRGIe F holding company 487 620 007 31/12 42% 98%QuARTIeR FRAnCAIS SPIRITeuX F holding company 483 726 287 31/12 42% 98%QuARTIeR FRAnCAIS SPIRITueuX euROPe F holding company 483 878 245 31/12 42% 98%QuARTIeR FRAnCAIS SPIRITueuX OuTRe-meR

F holding company 310 864 350 31/12 42% 98%

ReudIS F Sale of products and materials for food professions

410 926 901 31/12 25% 59%

RéunIOn BOISSOn F marketing of rum and derivatives 347 771 354 31/12 42% 98%RhumS RéunIOn F marketing of molasses and alcohols 310 865 043 31/12 39% 91%SBAnA F marketing and distribution of agrifood

products444 060 420 31/12 42% 98%

SCCV RéSIdenCe deS ARumS F Leasing and management of unfurnished buildings

495 045 965 31/12 42% 98%

SCCV Le TRéGOR F Construction and sale 501 015 598 31/12 42% 98%SCI BeAuLIeu 2 F Real estate development 508 137 262 31/12 42% 98%SCI CLOS SAInT JeAn F Real estate development 517 457 768 31/12 42% 98%SCI COuR de BeAuLIeu F Real estate development 500 830 055 31/12 29% 68%SCI mAISOnS BeAuLIeu F Real estate development 500 858 592 31/12 29% 68%SCI mB2 F Real estate development 508 135 613 31/12 42% 98%SCI SAInT-BenOÎT 1 F Real estate development 524 820 917 31/12 42% 98%SCI SAInT-BenOÎT 2 F Real estate development 524 821 048 31/12 42% 98%SCI deS VAVAnGueS F management of real estate holdings 394 058 382 31/12 24% 56%SenA hOLdInG LImITed Im holding company – 31/03 14% 32%SenA LIneS m Shipping company – 31/03 13% 31%SICRe F Coffee roasting 383 468 196 31/12 42% 98%SOCIéTé AGRICOLe du nORd-eST F Sugar cane transportation 315 160 143 31/12 24% 56%SOCIéTé d’éneRGIe éLéCTRIQue de L’eST F holding company 321 460 602 31/12 42% 98%SOCIéTé d’éThAnOL de SynThèSe F Synthetic ethanol 662 035 138 30/09 27% 63%SOCIéTé GénéRALe d’InVeSTISSemenTS deS mASCAReIGneS

F Production, processing and distribution 349 073 841 31/12 42% 98%

SOCIéTé mARROmeu LImITed Im holding company – 31/03 14% 32%SOCIéTé nAVImPeX F Coconut supplies and trade 302 177 563 31/12 23% 53%SOCIéTé SuCRIèRe du QuARTIeR FRAnCAIS


SOCIéTé VIChySSOISe d’APéRITIFS nOn ALCOOLISéS

F marketing of non-alcoholic drinks 440 792 257 31/12 42% 98%

SOFIPA F management of real estate holdings 317 613 842 31/12 23% 53%SuCRe AuSTRAL F holding company 315 281 832 31/12 24% 56%SuCReRIe de BOIS-ROuGe F Production of cane sugar 315 253 922 31/12 24% 56%SuCRIèRe de LA RéunIOn F Production of cane sugar 480 034 172 31/12 24% 56%SyRAL ASIA hK marketing of starch products – 30/09 27% 63%SyRAL BeLGIum BeL Production and marketing of starch

products– 30/09 27% 63%

SyRAL dO BRASIL COmeRCIO de AmIdOS BR marketing of starch products – 30/09 27% 63%SyRAL hALOTeK BR Production and marketing of starch

products– 31/03 18% 43%

SyRAL IBeRIA SP Production and marketing of starch products

– 30/09 27% 63%

SyRAL ITALIA I marketing of starch products – 30/09 27% 63%SyRAL uK uK Production and marketing of starch

products– 30/09 27% 63%

TeReOS F Sugar beet collection and processing 407 948 926 30/09 43% 100%TeReOS AGRO-InduSTRIeS F holding company 520 790 825 30/09 30% 71%TeReOS ALCOOLS F Production and marketing of alcohol 449 929 249 30/09 34% 80%TeReOS APPRO F wholesale grain marketing 533 055 042 30/09 43% 100%TeReOS BenP F Production and marketing of sugar beet

and wheat bioethanol480 891 407 30/09 27% 63%

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 - 2011 Annual report /01

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.

Tereos, a global playerfor sugar, starch and alcohol

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.

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.

12,000cooperative growers

26,500permanent and seasonal staff

Starches

No. 3

Sugar

No.4

Alcohols

No.1No.3

producer worldwide

producer in Europe

producer in Europe producer in Brazil

02 / Tereos - 2011 Annual Report

Message from the chairmen

Competitiveness of sugar beet underpinning Tereos’ developmentTereos 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 Béghin 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 etha-nol production sold for export.

Sugar beeT muST be able To counT on The quoTa SySTem Through To 2020Various structural factors have contributed towards this positive result for the French sugar beet industry. Firstly, the advances made by plant breeders, enabling the signifi-cant 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

growers and company possibilities for interesting outlets, in a con-text 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.

Developing STarch inTernaTionally anD expanDing The porTfolio of raw maTerialS

Another feature of the year was the continued international development of Tereos, Europe’s 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 Bra-zil, Tereos aims to become this coun-try’s third largest starch producer. In this way, Tereos has acquired a majority interest in Halotek, specialized in pro-ducing starch from manioc, with this

PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE BoARd


raw material added to the Group’s portfolio. drawing on this inter-est, 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 world’s 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 Haussimont’s potato starch unit. Following this operation, it has been able to add potatoes to its portfolio of raw mate-rials. Potato starch production will not only be devel-oped, but also focused on the specialty markets.

effecTively Developing value Through wheaT proDucTionIn 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

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 Benp’s 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 second-generation biofuel projects and the positive outlook for sugar beet.

THIERRY LECOMTE CHAIRMAn oF THE

SUPERVISoRy BoARd

4.4 billion euros in revenues

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


inveSTing To improve brazilian proDucTionThe 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 trans-fer of agricultural and industrial knowledge gained on sugar beet in France and sugar cane in Réunion. Indeed, its Réunion-based sub-sidiary 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 Guarani’s priority will be to reduce sugar loss, improve productivity and effectively capitalize on its energy potential with cogeneration.

confirming iTS poSiTionS in The inDian ocean anD africaIn Réunion, the 2011 campaign maintained the good levels recorded in 2010, producing 206,000 tons. This performance was made pos-sible 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 Réunion. 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

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 reSulTSThe 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 pay-ments. 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 con-text are expected to pave the way for a further improvement in the Group’s financial results for the year ending 30 September 2012.

cooperaTive STaTuS, a viTal aSSeTIn this context of growth and good results, Tereos is further strength-ening 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.

752 million euros in EBITDA

Adding value to our cooperative growers’ agricultural production is one of the primary missions of our cooperative group.” Thierry lecomte

THIERRY LECOMTE CHAIRMAn oF THE

SUPERVISoRy BoARd

PHILIPPE DUVAL CHAIRMAn oF THE ExECUTIVE 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.



Latin America

industrial sites

37

hectares of agricultural area processed

1 million

Indian Ocean

Presenceon three continents

RéunionBois-Rouge l l

Eurocanne l

Le Gol l l

BrazilAndrade l l l l

Cruz Alta l l l l l

Mandu l l l

Palmital lSão José l l l

Severínia l l

Tanabi l l

Vertente l l l

MozambiqueMarromeu l l

3.6 millionTONS Of SuGAR


Europe

Sugar refinery

Distillery

Packaging

Refining

Starch unit

Electricity

United Kingdom Selby l

BelgiumAalst l l

SpainOlmedo l

Saragossa l

ItalySaluzzo l l

Czech Republic

Ceské Mezirici lChrudim l

Dobrovice l l

Melnik l

FranceArtenay l l l

Attin lBoiry lBucy l l

Chevrières lConnantre lEscaudœuvres lHaussimont lLillebonne l

Lillers l l

Marckolsheim lMorains l

Nantes l

Nesle l lOrigny l l l

Thumeries l

1.9 million 1.7 million 535 GWhTONS Of STARCH PRODuCTS

M3 Of ALCOHOL AND BIOETHANOL

Of ELECTRICITy


The Tereos Group’s 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 grow-ers. Created through successive mergers between cooperatives, its main goal from the outset has been to ensure a sustainable out-let 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 con-tracts for other outlets—alcohol, ethanol and sugars for non-food industrial uses—as 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 SecTor’S conSoliDaTionIn this way, the Group has moved into Eastern Europe with the Czech Republic, South America with Brazil, and the African conti-nent with Réunion and Mozambique. Therefore, it has given itself the means to help drive the consolidation of the sugar-alcohol sec-tor 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 mate-rials and benefit from growth in emerging countries.

GovernanceModern vision of cooperation

upSTream organizaTion STreamlineDCreated 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 Group’s upstream structure has been simplified. This has been achieved while upholding the values of fairness and solidarity in agricultural cooperation.

moDern governance STrucTureTereos, 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 Group’s 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.

Le Directoire

FRoM LEFT To RIGHT

Pierre-Christophe Duprat Director of Tereos Céréales

Etienne Van Dyck Company Secretary

Philippe Duval Chairman of the Executive Board

Alexis Duval International and financial Director

Yves Belegaud Director of Tereos france

FRoM LEFT To RIGHT l Dominique Ferry, SBP cooperative vice-chairmanl Philippe Descamps, Abbeville cooperative chairman l Christophe Dedours, Marconnelle cooperative chairman l Jean-Charles Lefebvre, SDA cooperative director l Bertrand Magnien, SBP cooperative chairmanl Jacques Rousseau, Meaux Region cooperative chairman l Denis Lecart, Marne and Aube cooperative chairman, Vice-chairman of the Supervisory Board l Didier Beauvais, SDA cooperative director l Gérard Clay, SDHf cooperative chairman, Vice-chairman of the Super-visory Board l François Leroux, SDA cooperative director l Thierry Lecomte, SDA cooperative chairman, Chairman of the Supervisory Board

l oFFICE

l Yves Chenu, Artenay cooperative chairman l Dominique Trépant, SDA cooperative director l Gilles Bollé, Chevrières cooperative chairman l Marc Turpin, Boiry cooperative chairman l Xavier Laude, Escaudœuvres cooperative chairman l Gérard Grondel, Pont d’Ardres cooperative chairman l Guillaume Perdereau, Artenay cooperative director l François Ringo, SDHf cooperative director

Executive Board

Supervisory Board



StructureGroup organized around its raw materials

Tereos TTDTereos france

Cereal processing

Tereos Benp

Tereos DVO

Tereos Syral

Sugar cane processing

Tereos Guarani

Tereos Sena

Tereos Océan Indien

Tereos Internacional

12,000COOPERATIVE GROWERS

Sugar beet processing

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 pro-duce and transform sugar cane into sugar, ethanol and elec-tricity in Brazil (Tereos Guarani), Mozambique (Companhia de Sena), Réunion and Tanzania (Tereos océan 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 division’s activities, after Tereos Syral acquired a manioc starch unit in Palmital, in the south of

Brazil’s São Paulo State, in addition to the Haussimont potato starch unit in France’s Marne region.

The activities of Tereos France, the Group’s 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 São Paulo stock exchange. Its majority shareholders are Tereos and the coop-erative cereal partners, historically involved in cereal process-ing: Agrial, Axéréal, Cap Seine, Cohesis, Comptoir Agricole de Hochfelden, noriap, Thémis Agro-Industrie (union between Agora, Ax’ion, Cerena and Valfrance) and Unéal.


WoRLd SUGAR SToCkS REPRESEnT onLy 35% oF GLoBAL ConSUMPTIon.

In 2010-11, Europe embarked on its first post-reform 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 market’s 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 out-of-quota sugar and assigning 700,000 tons

for exceptional import contingents with zero or reduced duties. despite this, at the end of September 2011, Europe’s 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.

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

Sustained prices 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. Pro-duction 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 con-tinued to grow steadily by 2 to 3% per year, equiva-lent 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.

limiTeD global STockSWorldwide, 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

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, Brazil’s Center-South 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 produc-tion is stagnating, whereas sugar requirements are continuing to grow. In light of this, sugar prices are expected to be maintained over the long term.

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.

Our markets

Sugar

whiTe Sugar priceS (lonDon, $/Ton)

900.00

850.00

800.00

750.00

700.00

650.00

600.00

550.00

500.00

10/

10

05/

11

11/10

06/

11

12/

10

07/

11

01/

11

08/

11

02/

11

09/

11

03/

11

10/

11

04/

11

11/11

12/

11

01/

12

Source: Liffe


dEMAnd FoR TRAdITIonAL ALCoHoLS REMAInS STRonG.

EURoPEAn BIoETHAnoL ConSUMPTIon IS ExPECTEd To doUBLE By 2020.

Our markets

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, Europe’s 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.

European ethanol prices undermined by American exportsThe 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 pro-duction 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 government’s regulatory targets. Lastly, in Europe, following the increase in the levels included in fuel, ethanol con-sumption climbed 8% in relation to 2010.

Alcohol-ethanol

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.

conTinueD progreSS on The european markeTEuropean 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

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 eth-anol. 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 consid-ering 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 Commis-sion to investigate the trade practices for American exports, considered to be unfair.

eThanol anD peTrol priceS (e/m3)

Augu

st 0

8

Aug.

10

Aug.

09

Aug.

11

Feb.

09

Feb.

11

Feb.

10

oct

. 08

oct

. 10

oct

. 09

oct

. 11

Apr.

09

Apr.

11

Apr.

10

dec

. 08

dec

. 10

dec

. 09

June

09

June

11

June

10

ethanolpetrol2008/09 2009/10 2010/11

Source: kingsman

european markeT for TraDiTional alcoholS

720

670

620

570

520

470

420

370

320

720

670

620

570

520

470

420

370

320

270

220

170


THE PHARMACEUTICAL IndUSTRy IS WEATHERInG THE EConoMIC EnVIRonMEnT WELL.

THE PRoTEInS ExTRACTEd FRoM WHEAT ARE HIGHLy VALUEd FoR HUMAn And AnIMAL Food.

Our markets

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 wheaT repreSenTS The moST compeTiTive baSe for STarch proDucTS

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.

Starch products

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.

riSing priceSSimilarly, the high level of potato starch prices, reflecting the poor European harvest, and the limited availability of manioc starch as a replace-ment 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 macroeco-nomic factors and fundamentals for the cereal mar-

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 proDucTSThe 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 result-ing changes in dietary habits. More specifically, China has just overtaken the US to become the world’s 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 prod-ucts, for which specific technologies, innovations and quality are required by customers.

l Starches l liquid sweeteners l Specialties

Source: European Starch Industry Association (AAF)

2006/07 2007/08 2008/09 2009/10 2010/11

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

1,065 1,080 1,020 1,100 1,120

3,555 3,330 3,200 3,255 3,320

3,990 3,890 3,600 3,980 3,960

dEMAnd FoR TRAdITIonAL ALCoHoLS REMAInS STRonG.

What does Tereos produce?

AT ITS 37 IndUSTRIAL SITES, TEREoS PRodUCES SUGARS, ALCoHoLS, BIoETHAnoL, STARCH PRodUCTS, CoPRodUCTS And ELECTRICAL EnERGy. Tereos is the world’s fourth largest sugar producer, Europe’s third largest starch producer, the leading alcohol producer in Europe and number three in Brazil.

14 / Tereos - 2011 Annual report


19.3 million

100,000

300,000

18.9 million

3.7 million

TONS Of SuGAR BEET

TONS Of MANIOC

TONS Of POTATOES

TONS Of SuGAR CANE

TONS Of CEREALS (WHEAT AND MAIzE)

Wide range of productsTereos 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: Béghin Say, La Perruche and Blonvilliers in france, Sucreries de Bourbon in Réunion, TTD in the Czech Republic and Guarani in Brazil.

five raw materialsThe Group’s 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.

Sugar beet 2,900 staff

17industrial sites

19.3 million tons of sugar beet processed



Washing

SlicingDiffusion

Refining

Evaporation

Crystallization

Centrifugation

Drying

Crystallized sugar

Pulps

Scums

water

Low-purity syrup

Dilution

Fermentation

Distillation

Vinasse

Dehydration

Dehydration

Rectification

Absolute alcohol

Bioethanol

Traditional alcohols

Yeasts

Sugar beet

Manufacturing process

FILTRATIon UnIT.


The 2011-12 sugar beet campaign ended with a re-cord yield of 95.5 tons per hectare at 16% sugar con-tent. 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 cam-paigns. From an agronomical perspective, the 2011-12 cam-paign 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 summer’s rains, without any very hot condi-tions, ensured a regular pace of development. Sep-tember’s 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 TareLow autumn rainfall limited the level of dirt at-tached 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 elimi-nated and managed in the sugar refineries, improv-ing the economic and environmental management of this activity.

SUGAR BEET FIELd.

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.

Agricultural and industrial competitiveness

Tereos france

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 régions) – 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.

polarizable Sugar TranSporTeD per Truck (TonS)

4.24.3

4.5

4.3

4.64.64.7

5 5.1

4.7

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

Sugar beeT yielD (TonS/hecTare)

75.176.5

80.983.4

79.3 81

85.5

94

84.2

95.5

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

DirT Tare on neT 1 (%)

16.6

10 11.3 9.8 10 11 10.58

10.47.6

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12


The benefits of the agronomy department’s 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 sug-ar 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 tarpau-lin sheets. The straw is removed during the cleaning phase and remains in the field as a source of organic matter.

long campaignIn view of the exceptional harvest, the 2011-12 cam-paign began on 10 September in most of the facili-ties 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 competi-tive. 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%.

opTimizeD proceSSeSThe excellent quality of the sugar beet, combined with the technical teams’ resourcefulness, has made it possible to significantly reduce limestone consump-tion levels, generating further savings. once again, sugar losses and energy consumption have been ef-fectively kept under control thanks to the various facilities running smoothly, as well as thorough super-vision. The distilleries market has continued to grow, with the alcohol production capacity further strength-ened thanks to the new vinasse concentration unit deployed in Artenay. The Attin sugar refinery is con-tinuing to develop a new production unit for Bétador and “processed sugar beet juice”, in partnership with the Lesaffre, Maguin et Ecopsi group.

ambiTiouS inveSTmenT planThanks 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 conTracTIn 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 France’s global sugar beet production in 2011, are maintained.

campaign days 117

ConTRoL RooM. QUALITy LABoRAToRy.

average campaign lengTh (DayS)

81 75

84 81 8186

95

107110

117

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

average Daily Tonnage per faciliTy (TonS/Day)

12,60012,400

12,70013,000

13,30013,300

14,80014,350

14,14014,560

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12


tons of sugar sold1,668,000

CHECkInG FACILITIES. SUGAR CEnTRIFUGATIon.

For the 2010-11 campaign, Tereos France’s sugar quota was set at 1,208,000 tons. An interest-ing 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 Réunion, Brazil and, for the first time, Mozambique. While out-of-quota sugar produc-tion did not reach the exceptional levels seen in 2009-10, the quantities produced made it possi-ble 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.

preSence on The fermenTaTion anD pharmaceuTical markeTSIn 2010-11, Tereos France confirmed its status as a leading partner for its customers and consolidated its positions in France and its four main neighbor-ing countries: the Uk, Italy, Spain and Germany. The reclassification made it possible to increase sales to the European agrifood industry.

Sales to the fermentation industry are stable thanks to various long-term partnerships, while sales to the pharmaceutical industry have contin-ued 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 year’s level. Indeed, France has seen a sustained rate of consumption for the past two years and Tereos France is building its posi-tions again in Europe thanks to the new market environment.

In France, in the specialized mass retail/hard dis-count 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, Béghin Say accounts for 37% of the market. Lastly, on the specialty segment, which is continu-ing 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 conTexTGlobally, sales prices have remained stable for con-tracts 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.

l out-of-quota l in-quota03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

Sugar SaleS (‘000 TonS)

1,399

2,0361,622

1,742

1,3771,503

1,634 1,668

innovaTion anD viSibiliTy for The béghin Say branDThe communications and innovation policy was maintained in 2011 to continue promoting the Béghin 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 Stévia range will be extended in 2012. Following the success achieved in 2010, the

Béghin 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.


CHAnGInG BLAdES FoR SLICInG SUGAR BEET.

TAkInG SAMPLES FoR QUALITy AnALySIS.

tons of dehydrated pulp sold

261,000

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 trade-offs in favor of sugar. High-purity alcohols are sought after by increasingly demanding customers, par-ticularly 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. dur-ing 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 pos-sible to make relevant adjustments.

pulp priceS baSeD on raw maTerialSThanks 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 cam-paign. 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 possi-ble 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 avail-ability than in the previous campaign.

acquiSiTion of Three Sica pulp preSSing anD DehyDraTion uniTSduring the year, the acquisition of the Boiry, Escaudœuvres and Chevrières 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.

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

preSSeD pulp SaleS (‘000 TonS Dm)

50 50

119 120

48

88.4

110122

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

DehyDraTeD pulp SaleS (‘000 TonS)

160182

316286

183

269249 261

DevelopmenT of STevia exTracT SaleSThe 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.


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 aver-age 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 condi-tions. For 2012, the target is to sow 35,000 hectares.

128-Day campaignCombined, the two facilities processed 20,700 tons per day, compared with 19,700 tons per day in 2010-11. The campaign lasted 128 days, up from 101 previ-ously. 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 low-purity 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, pro-ducing 350 cubic meters of raw alcohol per day dur-

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 dis-tillery to become energy independent.

minimal STockS aT The enD of The yearAll 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 me-ters 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.

MELnIk SUGAR PACkAGInG UnIT. SUGAR BEET yARd AT THE CESkÉ MEzIRICI SUGAR REFInERy.

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.

Tereos TTd’s sugar beet areas increased once again thanks to the development of the various alcohol-ethanol contracts, with 34,600 hectares farmed by 420 beet growers in 2011.

recorD yielDSWhereas the target yield had been set at 70 tons per hectare at 16% sugar content for several years, pro-ductivity reached a record of 81 tons per hectare for the 2011 harvest, compared with 61 tons per hectare

Growing business

Czech Republic

Tereos TTD

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 beeT yielD (TonS aT 16 per hecTare)

60

65.4

58 5963.2 66.7

61.4

81

campaign lengTh (DayS)

8491 85 89 86

97 100

128

Sugar cane


21,900 staff

11 industrial sites

18.9 milliontons of sugar cane processed


Sugar cane

Processing process

QUALITy AnALySIS AT CRUz ALTA (BRAzIL).

CRySTALLIzATIon ConTRoL AT THE LE GoL SUGAR REFInERy (RÉUnIon - FRAnCE).

Receipt

Purification / settling

Scums

Evaporation

Crystallization

Centrifugation

Drying

Refining

Low-purity syrup

Dilution

Fermentation

Distillation

VinasseDehydration

Anhydrous alcohol

Hydrated alcohol

Brown sugar

White sugar

Water

Defibration

Crushing

Bagasse

Electricity


Brazil

Tereos Guarani

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.

Production investmentsThe 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 cam-paign. These contingencies led to a growing supply-side shortage of sugar and ethanol, pushing world prices up again.

DownTurn in brazilian proDucTionBrazilian 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 observ-ers 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

second drought struck from May to September 2011. Then, two periods of frost – an unusual phenom-enon in São Paulo State – damaged part of the sugar canes. Lastly, flowering appeared, affecting the agri-cultural yields a little more.

Sugar cane replanTing programSet against a shortage of sugar cane supplies, high prices and strong exchange rates, Tereos Guarani’s priority is to start planting again and modernize its capabilities with a view to saturating its facili-ties, 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, com-bined with an 11-year preferential rate loan from the Brazilian national development bank (BndES) for up to 300 million euros.

ALCoHoL SAMPLES BEInG TAkEn AT THE CRUz ALTA dISTILLERy.

SUGAR CAnE nURSERy AT THE CRUz ALTA SITE.

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12

Tonnage of Sugar cane proceSSeD (‘000 TonS)

3,8004,500

5,4008,200

12,200

14,40015,500

20,200

16,30020,000

15,000

10,000

5,000

0

l own-planted l Third-party (growers)

3,900

“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.


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 main-tained in 2012 with an equivalent planting program, which started up midway through January. In addi-tion, work is being carried out on sugar cane vari-eties with the sugar cane technology center (CTC) and the inter-university network for the develop-ment of the sugar cane industry (RIdESA) in Brazil, as well as with the variety research structure eRcane in Réunion.other areas for work are also being developed: using precision farming techniques, adding value to vinasse more effectively and even limiting soil com-paction 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 São José plant.

reDucing Sugar loSSeSFrom an industrial perspective, the main opportuni-ties concern sugar losses and energy saving in facili-ties 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 São José, Mandu and Tanabi plants for the next campaign. Tereos Gua-rani is also benefiting from the new São José distillery, which is enabling it to have additional capacity for fermentation, while reducing its molasses transporta-tion costs. In terms of electricity sales, various invest-ments are underway at the Cruz Alta, Mandu and São José 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.

of sugar cane harvested mechanically

80%

ConTRoL RooM AT THE CRUz ALTA SUGAR REFInERy.

MECHAnICAL SUGAR CAnE HARVESTInG.

Sugar proDucTion (‘000 TonS)

480

8911,090

433555

1,099937

1,5561,344

alcohol proDucTion, anhyDrouS anD hyDraTeD (‘000 cu.m)

84165

496

68105

394466

692

503

elecTriciTy SaleS (gigawaTT hourS/year)

2241

113 118

36

12296

287 271

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

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.


Mozambique

Companhia de Sena

The 2011 campaign was marked by a clear improvement in agricultural yields for Companhia de Sena, Tereos’ subsidiary in Mozambique.

Good campaignSugar cane yields increased by 35% and cane pro-duction 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 cam-paign 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%.

recorD proDucTion levelSThe campaign lasted a total of 217 days. This year’s progress reflects the improved sugar content and above all the better extraction levels achieved,

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 Mozambique’s three other sugar producers, Companhia de Sena sells all its sugar to distribuidora national de Açucar (dnA), the com-pany which has exclusive sales rights.once domestic demand has been covered, the “sur-plus” 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.

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.

MAInTEnAnCE TRAInInG. PACkInG SUGAR In BAGS In MARRoMEU.

2006 2007 2008 2009 2010 2011

Sugar cane yielD (TonS/hecTare)

55 4752

41

53

73

2006 2007 2008 2009 2010 2011

Sugar proDucTion (TonS)

69,000 66,000

46,000

61,000

38,000

67,000


Réunion and Tanzania

Tereos Indian Ocean

The 2011 campaign was satisfactory in the Indian ocean. In Réunion, sugar cane production performed well in the end, while Tanzania achieved very good yields thanks to the new varieties planted.

Production stable and effectively capitalized on

2011 looked set to be a mediocre year for Réunion 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 réunionWhile 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 island’s two refineries – Bois-Rouge and Le Gol – showing a slight increase in rela-tion to 2010. Average sugar content came to 13.5%, compared with 13.6% in 2010. In this way, Réunion produced 206,000 tons of sugar, with around 50% well-valued specialty sugars*. From an industrial perspective, the two sugar refin-eries and delivery platforms ran smoothly, enabling the teams to receive maximum sugar cane vol-umes 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 treat-ment plant in Bois-Rouge and sealing a partnership with EdF for effective energy demand manage-ment, 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 reSulTSIn Tanzania, the 2010-11 sugar campaign, which ran through to the end of March, was outstanding. 798,000 tons of sugar cane were received, com-pared 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 var-ious factors, including the new sugar cane varieties grown, despite a relatively unfavorable rainy season. In this way, almost 86,000 tons of sugar were pro-duced by Tanganyika Plantation Cie, in which Tereos has a 30% stake.

effecTive energy DemanD managemenT Since 2006, Réunion’s 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.

SUGAR CAnE BEInG dELIVEREd To THE LE GoL REFInERy.

BRoWn SUGAR SToREd AT EURoCAnnE.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Tonnage of Sugar cane proceSSeD in réunion (‘000 TonS)

1,8121,811 1,916 1,969

1,801 1,8641,576

1,7721,908 1,877 1,887

*Specialty sugars are defined by their microbiological values, grain size and coloring.

CerealsPotatoManioc


1,700 permanent staff

10 industrial sites

3.7 million tons of cereals processed


Cereals

Processing process

nESLE STARCH UnIT In FRAnCE.

Bran

Sieving

Milling and separation

Germ and fibers

Starch / gluten separation

Gluten

Drying

Drying

Liquefaction and saccharification

Liquefaction and saccharification

Filtration and demineralization

Drying

Maltodextrins

Concentration

Glucose syrups

Glucose syrups

Hydrogenation

Crystallization

Crystalline polyols

Liquid polyols

Starch milk

Fermentation

Distilling

Dehydration

Bioethanol

Rectification

Grain alcohol

Native and modified starches

Mill

Soaking


Cereals market

WHEAT BEInG dELIVEREd In SALUzzo (ITALy).

MAIzE BEInG UnLoAdEd In MARCkHoLSHEIM (FRAnCE).

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.

Surge in pricesand several years of falling stocks. Therefore, cereal prices rose from 130-150 euros per ton to nearly 240-260 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 Ameri-can maize, ahead of animal feed. China, the world’s second largest maize producer, still represents a very significant consumer and is starting to source sup-plies 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.

new balanceS for maizedespite Europe’s very good harvest in 2011, the USdA’s successive cuts in its estimates for Ameri-can maize production as the months went by highlighted the fragility of the global maize bal-ance, down to an all-time low with 14% stocks. At the same time, wheat harvests in the world’s main

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 stock-related fundamentals, 2010-11 was marked by vari-ous 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 China’s strong growth fueled concerns on the cereal mar-kets, sparking a downturn, with prices falling to 180-200 euros per ton.

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.

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 kazakh-stan) in August 2010. When Russia and the Ukraine announced that they would not be allowing their production to be exported, resulting in over 20 mil-lion 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

Source: HGCA, Euronext

cereal priceS in The european union (€/T)300

280

260

240

220

200

180

160

140

120

100

Apr.

07

Jan.

10

oct

. 08

July

11

Jan.

08

oct

. 10

Apr.

09

July

07

Apr.

10

oct

. 11

Jan.

12

Apr.

08

Jan.

11

July

09

oct

. 07

July

10

Jan.

09

July

08

Apr.

11

oct

. 09

wheat maize


Starch and glucose production

nESLE STARCH PRodUCTIon ConTRoL RooM (FRAnCE).

IndUSTRIAL PILoT AT THE RESEARCH And dEVELoPMEnT LABoRAToRy In AALST (BELGIUM).

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.

Diversification of raw materials and locations

Tereos Syral’s 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 mar-ket 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 hedg-ing on the forward markets.

TargeTeD inveSTmenTS in europeThe five European starch units – wheat (Marckolsheim, Aalst, nesle and Saluzzo) and maize (Saragossa and Marckolsheim) – operated at record levels to sat-isfy demand. over the year, almost 150,000 tons of additional cereals were milled. Various invest-

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 brazilFor 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 Gua-rani, it was a natural step for Tereos Syral to launch starch activities with a project offering both com-mercial 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 São 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

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 Syral’s 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.

SynergieS arounD The hauSSimonT poTaTo STarch uniT

l wheat l maize04/05 05/06 06/07 07/08 08/09 09/10 10/11

Tonnage of cerealS proceSSeD by TereoS Syral (‘000 TonS)

545 593

2,725 2,852

575

2,860 2,707


million euros invested in Brazil

100

HAUSSIMonT PoTATo STARCH UnIT (FRAnCE).

PALMITAL STARCH UnIT (BRAzIL).

maize starch unit at the Palmital site will be com-pleted 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 Brazil-ian starch platform, aiming to establish itself as the country’s third largest supplier.

heaDing SeT for chinaIn 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, Asia’s lead-ing processor of agricultural products, with a 49% interest for Tereos Internacional. Under this agree-ment, 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 partici-pate in the market’s 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 isoglu-cose sectors, as well as native starch and glucoses, while supplying Wilmar’s 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 pro-cessed.

poTaTo STarch in europeAlongside 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 Syral’s European starch products division, while keeping the support of its raw material sup-pliers. Indeed, the starch potato supplies coopera-tive (SCAF) is still a shareholder in the company. This

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 con-solidate 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 repre-sent 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.

Wilmar, Tereos’ partner in China and Asia’s leading agroindustrial group, is also the world’s 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 wheat-based 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.

wilmar, TereoS’ parTner in china

Diversification of raw materials and locations


Grain alcohols

SALUzzo dISTILLERy (ITALy). SEnSoRy AnALySIS LABoRAToRy AT THE nESLE dISTILLERy (FRAnCE).

Tereos is developing its operations on the grain alcohol market in Europe, where it has already established a leading position.

Recognized European leaderThe main spirits producer customers are developing their premium white alcohol sales worldwide from out of their European facilities. driven by this grow-ing demand, the Tereos Group’s 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 capital-ize 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 high-purity 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 nomi-nal capacity as of its second year of operations.

Selby DiSTillery broughT inTo proDucTionAt the beginning of 2012, the Selby distillery was brought online to further strengthen the Group’s 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.

l Selby l origny l greenwichl Saluzzo l nesle

05/06 06/07 07/08 08/09 09/10 10/11 11/12

TereoS grain alcohol proDucTion

Tereos Syral’s 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 large-scale fruit and vegetable production activities in Italy’s 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.

parTnerShip wiTh The franDino group


Bioethanol

AALST dISTILLERy (BELGIUM). GLUTEn ExTRACTIon UnIT BEInG BUILT In LILLEBonnE (FRAnCE).

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.

Changes at the Lillebonne site2010-11 was a record year for the Lillebonne facil-ity, which recorded its best technical and finan-cial 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 facili-ties, made trade-offs to focus on starch produc-tion on account of the favorable margin dif-ferential in relation to bioethanol. In this way, bioethanol production was down slightly in rela-tion 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 France’s 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 lillebonneSet against a backdrop of high cereal prices, two key decisions have been taken for the develop-ment 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 var-ious outlets developed by Tereos Syral. Secondly, a hydrolysate production unit will be set up, serv-ing Tereos Syral’s internal outlets (for subsequent processing into value-added products) and the growing requirements for plant chemistry.

beTTer paymenTS for wheaT The Lillebonne site’s 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.

47 5294

214

441531

571 543

674

l Tereos TTD l Tereos france l Tereos Syral l Tereos benp

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 (P)

TereoS’ bioeThanol proDucTion in europe (‘000 cu.m)

Recognized European leader

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.



The Tereos Group had 26,657 employees at 30 Sep-tember 2011, including 17,121 permanent staff (cor-responding 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.

35% SeaSonal STaffGiven the nature of the Group’s activities, sea-sonal contracts represent around 35% of Tereos’ workforce. This proportion varies consider-ably 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-cam-paign periods.

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 repre-sent more than 60% of the Group’s workforce. Indeed, these two subsidiaries have sugar cane production activities that require significant lev-els 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 divi-sion has seen changes in its headcount thanks to Tereos Syral’s acquisition of an interest in the Brazilian company Halotek, specialized in pro-cessing 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 commit-ted to the fight against child or forced labor. In Mozambique, where Tereos grows all of the sugar cane processed directly, the risk of inci-dents 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 suppli-ers 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 Group’s companies offer working conditions and benefits that exceed industry standards and branch-level agreements: all Tereos staff are cov-

QUALITy LABoRAToRy In MELnIk (CzECH REPUBLIC).

PRoCUREMEnT dEPARTMEnT AT THE nESLE STARCH UnIT (FRAnCE).

The talent, commitment and business expertise of the men and women who make up Tereos represent the foundation guaranteeing the Group’s performances. Each day, Tereos harnesses the motivation of its teams and makes every effort to offer them a fulfilling work environment.

Valuing know-how

Our commitments

Human resources

Headcount at 30 September 2011 PERMANENT CONTRACTS

NON-PERMANENT AND SEASONAL CONTRACTS

Tereos Participations 114 2

Sugar beet Tereos France 1,704 698Tereos TTd 359 147Total 2,063 845

Cereals Tereos Syral 1,500 101Tereos Benp 113 10Total 1,613 111

Sugar cane Tereos Indian ocean 452 291Tereos Guarani 3,392 731Agricultural activities (Brazil) 7,013 3,438Companhia de Sena 748 273Agricultural activities (Mozambique) 1,726 3,845Total 13,331 8,578

GENERAL TOTAL 17,121 9,536


ered by collective pay negotiations (correspond-ing to GRI indicator LA4) and the vast majority of the Group’s 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 indi-cator EC3).

ShareD know-howFrom 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

Réunion are capitalized on in Mozambique, Tanza-nia and Brazil, in the same way as know-how relat-ing to cogeneration. Tereos Syral’s European teams are involved in the Brazilian starch production pro-ject, 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.

over 400,000 hourS of TrainingIn 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 Group’s

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 pro-cess development” project, supported by the Euro-pean 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 Réunion, 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. Along-side 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.

CRySTALLIzATIon UnIT AT THE CESkÉ MEzIRICI SUGAR REFInERy (CzECH REPUBLIC).

InTER-CAMPAIGn MAInTEnAnCE AT THE BoIS-RoUGE SUGAR REFInERy (RÉUnIon - FRAnCE).

ConTRoL RooM AT THE BoIRy SUGAR REFInERy (FRAnCE).

SeTTing up an enTerpriSe Social neTwork In 2011, a 2.0 intranet was launched for the entire Tereos Group. now, all of the Group’s 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 Group’s various sites and subsidiaries.

Corresponding to GRI indicator LA 10

2008/09 2009/10 2010/11

average number of hourS Training per year anD per employee (permanent and seasonal, group-wide)

8.7

12.4

16.3


In Brazil, agricultural staff are continuing to be rede-ployed in other professions in connection with the development of mechanical harvesting. In 2011, 685 agricultural staff were guided towards new profes-sions in the company’s 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 disci-plines. For this, it has a professional training center accredited by the country’s 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 allTereos 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 Group’s sites, with specially adapted programs rolled out at all levels within the company.Each subsidiary develops its own program, tai-lored to its activities. Each year, Tereos Syral organizes a “Safety day”, providing an oppor-tunity 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 improve-ment 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 preven-tive and responsive methods in place. By engag-ing 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.

AGRICULTURAL MACHInERy dRIVER AT TEREoS GUARAnI (BRAzIL).

AGRICULTURAL STAFF AT CoMPAnHIA dE SEnA (MozAMBIQUE).

of Tereos france’s staff are young people on work-based training programs

4%

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 industry’s professions in Tereos Guarani’s agricultural, industrial, commercial and administrative sectors.


Our commitments

Research and development

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.

Innovation driving performance

Through its agricultural roots and commodity pro-cessing business, Tereos maintains links with the upstream agriculture phases for all its activities. With its cooperative growers, partners and suppli-ers for sugar beet, sugar cane and cereals, Tereos is constantly carrying out research and obtaining seeds that are not only efficient from an agronomi-cal perspective, but also optimal in terms of indus-trial processing.

agriculTural proDucTiviTyWhereas 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 France’s agronomy department, particularly with the French technical sugar beet institute (ITB), an inter-industry organization.Today, sugar beet from the latest selections is pro-ducing 15 tons of sugar per hectare. not only is the overall quantity of sugar increasing, but also the extraction quality is improving, alongside other agro-nomic aspects, such as disease resistance or toler-ance. To implement these innovations, the technical centers draw up specific procedures for use by the

growers. It is thanks to their technical prowess that these innovations can be put into practice.

inDuSTrial proDucTiviTyTereos’ core business - food production - is char-acterized by major investments making it possible to reduce processing costs, as well as by often deli-cate 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 Group’s 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 Group’s facilities in Réunion, is now standard practice around the world, particu-larly 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-

innovaTive varieTieS wiTh ercane Since 1929, eRcane has been helping drive the development of the sugar cane industry in Réunion, 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 Réunion.

average Sugar beeT yielD in france (T/ha)100

95

90

85

80

75

70

65

60

55

50

45

t/ha à 16°

Source: CGB.

1979

-80

1987

-88

1995

-96

2003

-04

1983

-84

1991

-92

1999

-00

1981

-82

1989

-90

1997

-98

1985

-86

1993

-94

2001

-02

2007

-08

2005

-06

2009

-10

2011

-12

VARIETy SELECTIon WoRk CARRIEd oUT By ERCAnE (RÉUnIon - FRAnCE).

nESLE STARCH UnIT RESEARCH oFFICE (FRAnCE).


STEVIASUCRES IS A PATEnTEd BLEnd CoMBInInG STEVIA ExTRACTS And SACCHARoSE.

TEREoS SyRAL RESEARCH And dEVELoPMEnT LABoRAToRy In MARCkoLSHEIM (FRAnCE).

FUTURoL PILoT dISTILLATIon CoLUMn InAUGURATEd In 2011.

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. Pentoval’s 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.

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 conSumerSThe 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 Stévia range.Lastly, the most competitive part of innovation concerns the service provided to industrial custom-

ers. Indeed, the products sold in this sector are gen-erally 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 establish-ing 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 solu-tions that are easy to use for industrial operators.

moving TowarDS new ouTleTS anD proDucTSLastly, 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

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 alter-natives 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 tim-ber coproducts, green residues and any other ligno-cellulosic biomass.


Our commitments

Our commitments

food safety

Environment

Tereos’ business is supplying sugars, alcohols, starches and coproducts in line with the expectations of cus-tomers 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 satisfac-tion of its customers with a view to preventing the risks of quality standards slipping, while continuously improving its processes and services. Crisis manage-ment procedures are in place for intervention in the event of any product quality, food safety or personal safety incidents.

From supporting sugar beet and cane producers for sustainable farming to reducing air and water emissions from the facilities, achieving energy sav-ings, optimizing logistics and reducing olfactory pollution, on both agricultural and industrial levels, Tereos strives to develop environmentally-friendly practices.

environmenTally-frienDly agri-culTural pracTiceSTereos is a driving force for progress in the agricul-tural 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 tech-nical center and eRcane in Réunion. In addition, the agronomy departments in the Group’s various sub-sidiaries and divisions support farmers and promote a sustainable and environmentally-friendly approach to agriculture.

Following the French Grenelle de l’Environnement initiative and the objectives set for reducing the use of plant protection products, Tereos France is mak-ing various commitments. Its agronomy department is part of the pesticide monitoring network and con-tributes towards the plant health reports for the vari-ous 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.

work To minimize polluTionIn 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.

Each one of the Group’s activities ensures that suitable food safety and quality management arrangements are in place, in line with its business lines and customers.

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.

Safe products

Sustainable production

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 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 TTD• Tereos TTd’s activities are ISo 9001 and ISo 22000/PAS 220 certified. Coproducts for animal feed are covered by the GMP framework.

TereoS benp• The Lillebonne site is ISo 9001, IFIS and EFISC certified.

TereoS guarani • All the sites – Tanabi, São José, Andrade, Cruz Alta, Mandu, Vertente and Severínia – are ISo 9001 certified.

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.


TREATMEnT PLAnT AT THE LILLERS SUGAR REFInERy-dISTILLERy (FRAnCE).

BAGASSE SToREd FoR CoGEnERATIon AT CRUz ALTA (BRAzIL).

of the energy consumed by Tereos comes from renewable sources

50%

For its part, Tereos Syral has adapted its Saragossa site, which is in a city center location, by mov-ing the entrance for the facility’s 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 dis-tillery 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, Escaudœuvres and origny sugar refineries – have deployed an odor control system, with odor neutralizers fitted around their settling basins.

cogeneraTion anD meThanaTionEnergy consumption and Co

2 emissions are also a

core focus for the industrial optimization projects that are underway. Réunion has been a pioneer in developing bagasse-based electricity production.

The island’s 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 encourag-ing sugar producers to develop electricity produc-tion to supply the national grid. In Europe, the sugar and starch production activities do not benefit from these sources of bagasse. How-ever, Tereos’ engineers are working each day to opti-mize 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 meth-anators: 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).

waTerMore than 90% of the extracted water used is sur-face 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 river’s mouth and kept below 0.3% of the river’s minimum flow rate (corresponding to GRI indicator EN8).

four inDuSTrial SiTeS iSo 14001 cerTifieDFour of the Tereos Group’s 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 France’s 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 Réunion.

2008 2009 2010 2008 2009 2010

DirecT energy (conSumpTion in gJ/T)

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

1.61.561.65 1.531.65

1.12


TEREoS GUARAnI HAS RALLIEd To SUPPoRT THE BonE MARRoW donATIon dRIVE.

CoMPAnHIA dE SEnA HAS FUndEd THE BUILdInG oF WELLS MAkInG IT PoSSIBLE To SUPPLy WATER FoR MARRoMEU.

Our commitments

Local commitment

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.

firm regional focusconTribuTing TowarDS local economic DevelopmenTThrough their economic importance, Tereos’ divi-sions and subsidiaries are involved locally in various social and environmental actions supporting their communities. In Réunion, Tereos Indian ocean has joined the Alizé network, created in 2001 with a view to help-ing 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 island’s economic fabric. Companhia de Sena is supporting various construc-tion and renovation operations, including funding for building six wells in neighboring areas during the past two years, enabling Marromeu and its sur-rounding areas to benefit from running water sup-plies. It is also involved in renovating Marromeu’s public buildings, from the hospital to the town hall, market square and the district’s 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 healThIn 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 sta-tion, the only widely accessible means of commu-nication for reminding people about all the hygiene and cleanliness guidelines for combating this dis-ease. 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 Guarani’s 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.

Raw materials make up over 75% of Tereos’ operat-ing expenditure, with its policy based on ensuring close and fair exchanges with local agricultural pro-ducers (corresponding to GRI indicator EC6). 42 mil-lion 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 Group’s 26,500 employees, as well as the many external pro-viders 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 district’s leading employer and provides income for around half of the people living there. The sugarcane industry in Réunion, where Tereos is the only indus-trial operator, represents 12,000 direct and indirect jobs out of a working population of 220,000 people.

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. Farm’s 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 francièreS 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 Francières, in France’s 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.



Sugar beetThe sugar beet division achieved 10.6% revenue growth, with 1,659 million euros, while adjusted EBITdA rose 14.3% to 343 million euros. The operat-ing margin came to 20.7%, compared with 20% in 2010. The sugar beet division represented 45% of the Group’s EBITdA in 2010-11 (50% the previous year).

TereoS franceTereos 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 France’s 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.

TereoS TTDTereos TTd’s 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 TTd’s adjusted EBITdA came to 50 million euros, up 28.5%.

Division results

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (IFRS)

10/11 (IFRS)

Sugar beeT: revenueS (€’000,000)

1,2081,430 1,450

1,6591,567 1,538 1,500

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (A)

10/11 (A)

Sugar beeT: ebiTDa (€’000,000)

173 168 178

343

187 171

300

34% Sugar cane

45% Sugar beet

21% cereals

2010-11 ebiTDa by raw maTerial

27% Sugar cane

38% Sugar beet

35% cereals

2010-11 revenueS by raw maTerial

22% Sugar cane

54% Sugar beet

24% cereals

2010-11 neT income by raw maTerial


Cereals

Sugar cane

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 Group’s EBITdA in 2010-11 (24% the previous year).

TereoS SyralTereos Syral recorded 1,264 million euros in rev-enues 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 vol-ume of coproduct sales increased by one third.Tereos Syral’s adjusted EBITdA is down 4.4% to 120

million euros, with this contraction due to an increase in sales prices that did not make it possible to fully off-set the rise in cereal and energy prices over the year.

TereoS benp anD DvoRevenues for Tereos Benp / dVo totaled 277 mil-lion 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.

The sugar cane division’s revenues totaled 1,180 mil-lion 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 Group’s 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 Septem-ber reflect the companies’ earnings over the last six months of the 2010-11 campaign and the first six months of the 2011-12 campaign.

TereoS guaraniTereos 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 rev-enues for 2010-11, 36% higher than the previous year.

This growth primarily reflects the strong sugar prices and the significant increase in alcohol prices in Bra-zil, as well as the consolidation of the Vertente and Mandu facilities over 12 months. Tereos Guarani’s 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 oceanTereos Indian ocean groups together the sugar activities on Réunion. Its revenues are up 158% to 235 million euros, driven primarily by the consolidation of Quartier Français’ sugar assets over 12 months. Adjusted EBITdA came to 51 million euros, an increase of 88%.

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (IFRS)

10/11 (IFRS)

cerealS: revenueS (€’000,000)

168381

1,3631,541

217

1,6151,500

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (A)

10/11 (A)

cerealS: ebiTDa (€’000,000)

529

179157

12

114

145

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (IFRS)

10/11 (IFRS)

Sugar cane: revenueS (€’000,000)

142

357496

1,180

310432

787

04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (A)

10/11 (A)

Sugar cane: ebiTDa (€’000,000)

3461 74

255

8869

157


conDenSeD conSoliDaTeD balance SheeT aT 30 SepTember 2011 (€’000,000)

(1) Corresponds to the consolidated entity’s shareholders’ equity and cooperative capital.

Consolidated earnings

Group’s consolidated financial statementsAs the majority company, the SdA cooperative is responsible for preparing the consolidated finan-cial statements and ensuring their certification by the auditors. It is the Tereos Group’s consolidating entity. Since Fy 2007-08, the consolidated financial statements have been drawn up in accordance with IFRS.

income STaTemenTThe SdA Group’s consolidated revenues rose from 3,615 million euros in 2010 to 4,531 million euros in 2011. The SdA Group’s 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.

aDDiTional paymenTS anD DiviDenDSAdditional payments have been increas-ing significantly for the past two years. For the 2011 campaign, they represented a total of 65.7 million euros, compared with 50.1 mil-lion euros in 2010 and 18.1 million euros in 2009. After the payment of additional payments and tak-ing 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.

balance SheeTThe SdA Group’s 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 mil-lion euros in 2010. The balance sheet total reflects a strong rate of growth, up from 5,815.3 million euros

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 Français in Réunion 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.

01/02 02/03 03/04 04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (IFRS)

10/11 (IFRS)

conSoliDaTeD revenueS (€’000,000)

939

1,7102,277

3,4093,757

4,531

1,729 1,7572,378

3,615

01/02 02/03 03/04 04/05 05/06 06/07 07/08 (IFRS)

08/09 (IFRS)

09/10 (A)

10/11 (A)

conSoliDaTeD ebiTDa before aDDiTional paymenTS (€’000,000)

126

263 293

440368

764

151229 266

598

aSSeTS 2010/11 2009/10non-current assets

4,071.3 3,965.7

Current assets 1,968.2 1,660.6other assets 211.7 189.0

ToTal 6,251.2 5,815.3

liabiliTieS 2010/11 2009/10Shareholders’ equity(1) 2,330.3 2,194.1non-current liabilities

1,840.3 1,573.2

Current liabilities 1,919.9 1,894.1other liabilities 160.6 153.8

ToTal 6,251.2 5,815.3


Sugar beet revenue paid to cooperative growersdespite the average level of agricultural yield for the 2010-11 campaign, the year’s 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.

aDDiTional paymenTS anD inTereST on company ShareSIn view of Tereos France’s 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 con-tract also benefited from interest on company shares equivalent to 0.30 euros per ton at 16.

DiviDenDSIn February 2012, the cooperative growers received the dividends from Tereos for Fy 2009-10, repre-senting 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 divi-dend of 14 million euros, drawn from Tereos’ sub-sidiaries through Tereos Participations. These higher dividends will be received in February 2013.

All of these elements - additional payments, divi-dends and interest on shares - paid by Tereos repre-sent a combined total of 99 million euros.

Sugar beeT revenueThe 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 hec-tare (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” single-payment 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.

The average sugar beet price for 2010-11 came to 31.10 euros/ton at 16 before dividends and pulp revenues.

In-quota sugar beet

Reclassified sugar beet

Alcohol-ethanol sugar

beet

Export sugar beet

other use sugar beet

Surplus sugar beet

priceS for TereoS Sugar beeT purchaSeS in 2010-11 (€/T)

33.2330.83 29.10

26.45 23.3922.45

* Union Sucre Éthanol cooperatives (excl. SDHF) until 2004-05, all cooperatives since 2005-06. (1) Sugar beet single-payment rights are not included in these revenues.

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)

average Sugar beeT revenue for TereoS group cooperaTive growerS*, incluDing DiviDenDS anD pulp revenueS (€/ha)

2,5302,737 2,767 2,937 3,071

2,447 2,380 2,339 2,4982,913

05/06 06/07 07/08 08/09 09/10 10/11

financial benefiTS paiD To TereoS cooperaTive grower (€/ha)

166 121 162 119

298

678

l in-quota sugar beetl reclassified sugar beet*l alcohol-ethanol sugar beetl export sugar beetl other use sugar beetl Surplus sugar beet after

compensation

breakDown of TereoS Sugar beeT purchaSeS in 2010-11 (%)

* 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.

1%6%5%

25%

7% 56%


SDa group conSoliDaTeD balance SheeT aT 30 SepTember 2011 (€’000)

ASSETS 2010/2011 2009/2010

Goodwill 1,226,215 1,254,943Intangible assets 147,299 151,976Biological assets 204,788 177,450Property, plant and equipment 2,129,091 2,033,430Investments in associates 65,647 85,663Available-for-sale securities 13,082 14,517other non-current financial assets 82,337 72,162deferred tax assets 197,441 172,393Tax assets due 28 31other non-current assets 5,396 3,131NON-CURRENT ASSETS 4,071,324 3,965,695

Inventories 710,540 589,731Trade receivables 554,322 467,580other current financial assets 297,367 284,688Current tax assets due 12,294 14,622Cash and cash equivalents 240,844 234,202other current assets 152,810 69,757CURRENT ASSETS 1,968,178 1,660,580

non-current assets held for sale 211,675 189,014

TOTAL ASSETS 6,251,177 5,815,289

EQUITY AND LIABILITIES 2010/2011 2009/2010

Additional paid-in capital 2,545 2,545Reserves and retained earnings 673,482 590,739EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 676,027 593,284

non-controlling interests 1,638,615 1,585,153TOTAL EQUITY 2,314,643 2,178,438

Cooperative capital 15,691 15,702COOPERATIVE CAPITAL AND EQUITY 2,330,333 2,194,139

Long-term borrowings 1,479,750 1,197,086Provisions for pensions and other post-employment benefits 26,039 21,026other long-term provisions 29,061 39,607deferred tax liabilities 52,299 43,989non-current tax liabilities due 0 0other non-current financial liabilities 222,341 242,930other non-current liabilities 30,836 28,610NON-CURRENT LIABILITIES 1,840,326 1,573,248

Short-term borrowings 769,136 961,073other short-term provisions 3,835 14,719other current financial liabilities 434,997 395,016Trade payables 629,346 473,309Current tax liabilities due 12,682 15,797other current liabilities 69,876 34,202CURRENT LIABILITIES 1,919,872 1,894,116

Liabilities associated with assets held for sale 160,646 153,786

TOTAL EQUITY AND LIABILITIES 6,251,177 5,815,289

Extract from the consolidated financial statements of the Sucreries et Distilleries de l’Aisne 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 l’Aisne 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.

Consolidated financial statements


SDa group conSoliDaTeD comprehenSive income STaTemenT (€’000)

2010/2011 2009/2010CONTINUING OPERATIONS

Revenue 4,531,124 3,615,221Change in inventories of finished products 90,668 127,658Purchases consumed -2,609,138 -2,092,299External charges -756,304 -661,772Payroll expenses -460,743 -406,141duties and tax -71,330 -59,824depreciation, amortization and impairments -334,397 -288,124Provisions 4,632 664other recurring operating income 167,728 161,944other recurring operating expenses -118,810 -74,205RECURRING OPERATING INCOME BEFORE ADDITIONAL PAYMENTS 443,431 323,121

Additional payments -65,600 -50,199RECURRING OPERATING INCOME 377,831 272,922

other non-recurring operating income 41,227 67,989other non-recurring operating expenses -38,907 -113,819NET INCOME FROM OPERATING ACTIVITIESV 380,151 227,093

Financial expenses -507,195 -334,627Financial income 382,316 197,160NET FINANCIAL EXPENSE -124,878 -137,467

Income tax expense -19,717 49,111Share in net income of associates 8,211 4,358NET INCOME FROM CONTINUING OPERATIONS 243,767 143,095

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE 2,402 3,494

net income from discontinued operations and assets held for sale 2,402 3,494

NET INCOME 246,169 146,589

OTHER COMPREHENSIVE INCOME Change in fair value of available-for-sale financial assets 2,673Change in fair value of hedging instruments -72,125 -10,788Change in unrealized foreign exchange gains and losses -74,199 33,629Income tax relating to other comprehensive income items 22,335 8,002

OTHER COMPREHENSIVE INCOME / EXPENSE, NET OF TAX -121,316 30,843

TOTAL COMPREHENSIVE INCOME 124,853 177,431

of which, attributable to owners of the parent 62,724 49,791of which, attributable to non-controlling interests 62,129 127,640


Consolidated companiesName Country Business SIREN code

Year-end*

Parent company

interest (%)Tereos

interest (%)

conSoliDaTing parenT company

SUCRERIES ET dISTILLERIES dE L’AISnE F Sugar beet collection 303 628 499 30/09 – –

fully conSoliDaTeD companieS

ACoR & TEREoS IBERIA, S.A. SP Marketing of sugar – 30/09 26% 60%AGRICoLA RodEIo BR Farmland – 31/03 18% 43%AndRAdE AÇÚCAR E ÁLCooL BR Production and marketing of cane sugar

and alcohol– 31/03 12% 29%

AndRAdE AGRICULTURA LTdA BR Farmland – 31/03 12% 29%AUSTRAL dÉVELoPPEMEnT F Holding company 483 894 101 31/12 42% 98%BELLonIE ET BoURdILLon SUCCESSEURS

F Production and marketing of rums and derivatives

303 159 859 31/12 25% 60%

BoUGUET PAU F Purchase, sale, brokerage and representa-tion of all agrifood products

393 415 138 31/12 42% 98%

BoURBon PLASTIQUES F Production and sale of plastic products 320 815 764 31/12 25% 59%BIo-ÉTHAnoL noRd PICARdIE F Production and marketing of bioethanol,

wheat and sugar beet389 430 331 30/09 27% 63%

CEInERAy F Brokerage and representation 378 928 790 31/12 24% 56%CoMPAGnIE BoURBon PLASTIQUES F Brokerage and representation 310 837 455 31/12 28% 65%CoMPAnHIA dE SEnA M Production and marketing of cane sugar – 31/03 13% 31%CoMPAnHIA EnERGÉTICA SÃo JoSÉ BR Production and marketing of cane sugar

and alcohol– 31/03 18% 43%

CRUz ALTA PARTICIPACoES BR Holding company – 31/03 18% 43%dÉVELoPPEMEnT PATRIMoInE dE L’EST F Real estate development 499 472 660 31/12 29% 68%dÉVELoPPEMEnT PATRIMoInE InVESTISSEMEnT ConSEIL

F Real estate management and transactions 480 034 198 31/12 42% 98%

dILMooR I Production of alcohols and spirits – 31/12 25% 59%dISTILLERIES AGRICoLES dE SAInTE-LUCE

F Production and marketing of rums and derivatives

303 150 320 31/12 25% 60%

dISTILLERIE RIVIÈRE dU MAT F Rum distillery 487 619 975 31/12 42% 98%dISTILLERIE dE SAVAnnA F Rum distillery 310 850 391 31/12 42% 98%ERCAnE F Agronomic research 320 180 409 31/12 24% 56 %EURoCAnnE F Marketing of sugar 349 651 513 31/12 24% 56%FAUConnIER F Production of alcohols and spirits 616 220 034 31/08 42% 98%FInAnCIÈRE dES HAUTS dE FRAnCE F Holding company 414 141 630 31/08 43% 100%FRAnCE FondAnTS F Production and marketing of confection-

ery sugars383 630 969 30/09 17% 40%

GÉnIE CIVIL ET TRAnSPoRTS PUBLICS F Transport 418 328 753 31/07 43% 100%GIE UTILITÉS MARCkoLSHEIM F Production of industrial utilities 444 859 599 30/09 17% 41%GRoUPE QUARTIER FRAnÇAIS F Holding company 300 648 292 31/12 42% 98%GRAnoCHART F Brokerage 332 618 883 31/12 19% 45%GUARAnI BR Production and marketing of cane sugar

and alcohol– 31/03 18% 43%

HUBAU F Trade in grains and supplies 326 461 605 30/06 70% –HUnTInG LodGE SPIRITS LIMITEd Uk distribution of spirits – 31/12 42% 98%LES ARUMS 1 F Leasing and management of unfurnished

buildings518 743 070 31/12 42% 98%

LES ARUMS 2 F Leasing and management of unfurnished buildings

518 074 646 31/12 42% 98%

LES ARUMS 3 F Leasing and management of unfurnished buildings

518 074 935 31/12 42% 98%

LES BAnIAnS F Real estate development 411 891 567 31/12 42% 98%LoIRET ET HAEnTJEnS F Marketing of sugar and molasses 854 800 315 31/12 23% 53%LoIRET HAEnTJEnS ESPAGnE, S.A. SP Brokerage and representation – 31/12 23% 53%MASCAREIGnES TRAnSPoRT InTERnATIonAL F International freight forwarder 401 194 386 31/12 24% 56%

MASCARIn F Production and marketing of cane sugar 310 863 311 31/12 42% 98%QFL F Holding company 491 114 534 31/12 42% 98%


Parent company

interest (%)

Tereos interest

(%)


424 388 643 30/09 43% 100%





products403 138 225 30/09 27% 63%




products– 30/09 13% 31%


sugars527 914 352 30/09 21% 50%


– 30/09 13% 32%


equity affiliates




Parent company

interest (%)

Tereos interest

(%)




410 926 901 31/12 25% 59%


products444 060 420 31/12 42% 98%


495 045 965 31/12 42% 98%








products– 30/09 27% 63%


products– 31/03 18% 43%


– 30/09 27% 63%


products– 30/09 27% 63%





Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Our markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


Sugar cane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Cereals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29



Food safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42









Parent company

interest (%)

Tereos interest

(%)


424 388 643 30/09 43% 100%





products403 138 225 30/09 27% 63%




products– 30/09 13% 31%


sugars527 914 352 30/09 21% 50%


– 30/09 13% 32%


equity affiliates




Parent company

interest (%)

Tereos interest

(%)




410 926 901 31/12 25% 59%


products444 060 420 31/12 42% 98%


495 045 965 31/12 42% 98%








products– 30/09 27% 63%


products– 31/03 18% 43%


– 30/09 27% 63%


products– 30/09 27% 63%





Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Our markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


Sugar cane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Cereals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29



Food safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42









2011 ANNUAL REPORT


www.tereos.com





1/ SuGAR BeeT




5/ wheAT

6/ SuGAR CAne




2011 ANNUAL REPORT

1 2 3

4 5

6 7 8


2011 ANNUAL REPORT


www.tereos.com





1/ SuGAR BeeT




5/ wheAT

6/ SuGAR CAne




2011 ANNUAL REPORT

1 2 3

4 5

6 7 8

Rapp_2011_TEREOS_GB

Documents

companhia de sena

unfurnished buildings leasing

sda cooperative director

philippe duval chairman

tereos ocan indien

consolidated financial statements

gluten extraction unit

good weather conditions