World and Brazilian Fertilizer Market

MARCH 2012

Company Overview

GLOBAL FERTILIZER CONSUMPTION BY NUTRIENT

157.0

159.6

170.4

176.8

181.0

107

109

2011

TOTAL N

99

101

103

29% 60% 24%

P2O5 K2O

34

36

40

41

42 23%

24

23

27

2008

2009

2010

29

30

2011

2012

47%

17% World

Brazil

Estimated growth of 2.4% in 2012 Annual estimated average growth of 3.6% from 2010 to 2012

Source: IFA, June 2011 (e) estimate

3

GLOBAL PRODUCTION CAPACITY OF FERTILIZERS % of Utilized Capacity

85%

millions of tons by nutrient - NPK

81%

76%

Production recovery after 2009 by increasing utilized capacity

Source: IFA Note 1 – The total volume contemplates industrial use fertilizers

4

GLOBAL FERTILIZER PRODUCERS BY REGION -2009 AMMONIA (NITROGEN)

ASIA

65.0%

EUROPE & OTHERS AMERICAS AFRICA Source : ANDA / IFA

17.6% 14.8% 2.6% 5

GLOBAL FERTILIZER PRODUCERS BY REGION- 2009

PHOSPHATE ROCK

54.9%

ASIA 21.5%

AMERICAS

21.0%

AFRICA EUROPE & OTHERS Source: ANDA / IFA

2.6% 6

GLOBAL FERTILIZER PRODUCERS BY REGION- 2009

POTASSIUM CHLORIDE

42.2%

ASIA AMERICAS EUROPE Source : ANDA / IFA

31.1% 26.7% 7

INVESTMENTS IN RAW MATERIAL PRODUCTION

WORLD RESERVES INVESTMENTS IN NEW CAPACITIES

Available

Limited

Limited

US$ 1,4 billion per 1 million tons of ammonia – 3 years

US$ 1,6 billion per 1 million tons of P2O5(i) 3-4 years

US$ 1,6 billion per 1 million tons of KCL(ii) 5-7 years

~ 75 countries (ammonia basis) 1 st China; 2nd Russia; 3rd India; 4th USA

~ 100 countries (P205 basis) 1st China; 2nd USA; 3rd Morocco; 4th Russia

12 countries (KCL basis) 1st Canada; 2nd Russia; 3rd Belarus; 4th Germany

Regional

Global Players

Global few global players

PRODUCING COUNTRIES MARKET CHARACTERISTICS BRAZILIAN POSITION ANNOUNCED INVESTMENTS

1% of World’s Production 3% of World’s Consumption China, Qatar, Saudi Arabia, Egypt, Brazil and Iran

4% of World’s Production 1% of World’s Production 9% of World’s Consumption 14% of World’s Consumption China, Brazil, Maroccos, Saudi Arabia and Peru

(i) Includes phosphates rock, sulfuric acid and MAP/DAP (ii) Conventional Mining

Source: IFA / ANDA / Potash Corp / BMO –april/2009

Canada, Brazil, Maroccos, Saudi Arabia and Peru

8

GLOBAL MARKETS AND CARG OF LARGEST MARKETS 2010 Global Largest Fertilizer Markets (1) Market Share 2010

29.8%

CAGR of Largest Markets % CAGR

27.7%

3,5%

11.8%

4,6%

5.9% 2.9% 2.2%

1.8%

0,4%

6,2%

mm tons

mm tons

1.7%

CAGR 1990 - 2010

16.3%

Brazil is the world’s 4th largest market and is growing above the global average Note:(1) In nutrient consumption / source: IFA/ANDA

9

EVOLUTION OF BRAZILIAN INDUSTRY AND HERINGER Industry CAGR 6.2%

Heringer CAGR 17.0%

Brazilian Market

Heringer 28.3

22.8 22.8

(mm tons)

10.8

12.2

13.8 14.6 13.6

16.3 17.0

19.1

24.6 20.2 21.0

0.4

0.7

0.8

1.0

1.1

1.5

1.5

1.7

2.1

2.2

2.0

2.5

3.3

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

22.4 22.4

24.5

3.2

3.9

4.5

4.9

2008

2009

2010

2011

Heringer’s Market Share 17.2% in 2011

Source: Anda / Heringer CAGR - 1995 - 2011

10

SUSTAINABILITY AND FERTILIZERS IN BRAZIL 2,000

*PLANTED AREA/HA (CAGR 2%) 1,800

 *AGRI PRODUCTION (CAGR 5%)

1,600

FERTILIZERS (CAGR 7%)

1,400

Planted area CAGR (1969 to 2011) of 2%, vs. agricultural production CAGR of 5%

1,200 1,000

 Fertilizer consumption CAGR of 7% shows the important gain in agricultural productivity and contribution of this input to environmental preservation

800 600 400 200 0 1970

1975

1980

1985

1990

1995

2000

2005

2010

2011

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

Source: Agroconsult

11

BRAZIL – TOTAL AND ARABLE LAND TERRITORIAL DISTRIBUITION (MILLION PER HA)

BRAZIL

851.0

%TOTAL LAND

%ARABLE LAND

100%

---

329.9

38.8%

100%

Cultivated Area (annual and permanent)

72.2

8.5%

21.9%

Grain

49.9

5.9%

15.1%

Soybean

24.2

2.8%

7.3%

Corn

13.8

1.6%

4.2%

Bean

4.0

0.5%

1.2%

Rice

2.8

0.3%

0.9%

Cotton

1.4

0.2%

0.4%

Sugarcane

9.2

1.1%

2.8%

Coffe

2.2

0.3%

0.7%

Orange

0.8

0.1%

0.3%

Planted Forest

6.5

0.8%

2.0%

172.0

20.2%

52.1%

85.7

10.1%

26.0%

Arable Land

Pasture Available Area >> arable land – (cultivated + pasture)

Brazilian grain production uses only 21.9% of arable land Brazil has 14.0% of fresh water of the world Fontes: FGV

12

BRAZILIAN FERTILIZER PRODUCTION CHAIN Basic and Intermediate Fertilizer Producers NPK Mixture Producers

Mineral Extraction Natural Gas

Natural Gas (N)

Phosphate Rock (P)

Potassium (K)

Vale Fert. Petrobras

Copebras Galvani

Urea / Nitrate/ Sulfate

Vale Fert. Vale Fert.

Petrobras Proquigel

MAP / DAP

Copebras Vale Fert.

TSP

SSP

Copebras

Vale Fert. Copebras Galvani

Vale Fert. Yara

Potassium Chloride

Mixers and Distributors (NPK)

Heringer Bunge Mosaic Yara Fertipar ADM Others (+-

Heringer Yara Timac Bunge Cibrafertil Fospar

Vale Fert.

110 compan.)

Clear segmentation of the production and distribution on Brazilian market In 2011 Brazil imported 70% of the fertilizer it consumed 13

BRAZIL’S AGRICULTURAL CALENDAR 35% CROPS

JAN

FEB

MAR

APR

65% MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

Planting

SOYBEAN

Harvest Planting/Coverage

Sugarcane Planting 18-Month System

SUGARCANE

Northeast Harvest Planting/Coverage

COFFEE

Planting/Coverage Harvest

Winter Crop Planting

CORN

Northeast Harvest

Center – South Harvest

Harvest

Planting Winter Crop Harvest Planting

COTTON

Harvest

Production cycle of the five crops with the highest fertilizer consumption in Brazil Historic sazonality 35% in 1H and 65% in 2H 14

BRAZIL: IMPORTANTE AGRIBUSINESS PLAYER Brazil as a % of Global Production – 2010/11

Brazil as a % of Global Exports 2010/11 1º

1º 1º

1º 2º

1º

1º 4º

3º

2º

5º

3º

Brazil is one of the largest producers/exporters of agricultural products and has one of the lowest production costs in the world Sources: USDA/ Agroconsult – in metric tons

15

FERTILIZER DELIVERIES BY CROP Brazilian Market - 2011

Heringer - 2011 Soybean 14%

Soybean 34%

Sugarcane 20%

Sugarcane 15% Corn 18%

Corn 18%

Others 23%

Coffe 7%

Reflorest. 3%

Others 23%

Coffee 19% Reflorest. 6%

Heringer offers solutions for many different crops, minimizing the volatility associated with local climates and other specific conditions, such as price cyclicality, pests and disease. Source: LSPA – IBGE/CEPE AGRO e ANDA

16

SALES BY SEGMENT - 2011 Number of Clients

Sales by segment Individuals 45%

50,229 Resale 6% cooperatives 6%

45,190

44,959

2009

2010

Companies 43%

Individuals/Companies = 88% of volume

2011

Focus on the segment is important for increasing profitability and mitigating risks More than 50,000 clients in 2011– a retail Company 17

MIXING UNITS AND PRODUCTION CAPACITY 19 units located in the main consumer market, with installed mixing capacity around 6 million metric tons

1 Sulfuric acid and single super phosphate (SSP) Unit

Rosário do Catete

Brazilian Market Distribution 2010 South 27.60%

Camaçari Rondonópolis Anápolis

North 1.90%

Rio Verde

Northeast 12.20%

Catalão

Uberaba Bebedouro Ourinhos Dourados

Manhuaçu Iguatama Três Corações

São João do Manhuaçu Viana

Paulínia

Paranaguá

Southeast 28.60%

Middle East 29.70%

Porto Alegre

Legenda Legend Unidades Misturadoras Mixing Units

Rio Grande

Unidade SSP Unitde SSP

18

FINANCIAL HIGHLIGHTS

2006

2007

2008

2009

2010

2011

Volume (million metric tons)

2.5

3.3

3.2

3.9

4.5

4.9

Net Revenue (R$ thousand)

1,435,969

2,260,839

3,524,559

3,192,314

3,521,473

4,704,010

58,606

83,266

90,113

38,765

212,331

352,491

4.1%

3.7%

2.6%

1.2%

6.0%

7.5%

EBITDA (R$ thousand)

EBITDA Margin

EBITDA in 2011 was the highest in Heringer’s history 19