1Q12 Results Page 9 of 29 ALL RAIL OPERATIONS BUSINESS DESCRIPTION

Results Page 9 of 29 ALL RAIL OPERATIONS BUSINESS DESCRIPTION ALL Rail operations are composed of 6 rail concessions in Brazil and Argentina, totaling 21.3 thousand km of rail tracks, 1,095 locomotives and 31,650 rail cars, through which the Company transports agricultural commodities and industrial products. The rail network serves an area that accounts for approximately 65% of Mercosur s GDP, where seven of the most active ports in Brazil and Argentina are located, through which approximately 78% of all South America s grain exports are shipped annually. Results are shown separately among Argentina and Brazil operations. In Brazil, results are divided in two business units: Agricultural Commodities and Industrial Products. The Agricultural Commodities business unit consists in three mainly flows of transportation: (i) Export flows, which ship soy bean, soy meal, corn, sugar and wheat, from the countryside terminals to the ports of Santos, Paranaguá, Rio Grande and São Francisco do Sul, (ii) Import flows, transporting mainly fertilizers and wheat from the ports to the countryside and (iii) for internal market distribution, through which agricultural commodities are transported to attend production demands among different regions in Brazil. In Industrial Products, there are two different segments: Intermodal Products and Pure Rail Products. Intermodal Products comprises products which were not historically transported by railroad in Brazil because of the level of service needed in those operations, which was much higher than railroad offered in the past. As we improved our operational indicators along the years, we start to be able to capture those volumes, usually in a partnership model with our clients, where the needed investment is shared between both. The growth dynamic in this unit is based in the company s capacity of adding new projects or by further expansions of existing projects. The unit is composed by steel products, wood products, food products and containers. In Pure Rail Products we have a different situation, as even before the privatization those volumes were highly transported by rail. The unit consists in construction, vegetal oil and fuel products transportation, which today are shipped almost exclusively by rail in our area of operation. The high market share we have in this segment leave us subject to market s performance, and we expect that growth in this unit should be aligned to Brazilian GPD in the long term. Regarding ALL Rail Operation in Brazil s strategy, the company expects to grow its organic business volumes in a rate of 10% per year, on average, over the next 5 years. The growth is mainly sustained by market share gains and productivity improvements, as Capex level should remain stable at R$650 million per year, decreasing as a percentage of revenues through the years. In addition, in 2012 we are investing the remaining R$154 million to conclude, until the end of the year, the construction of our new rail network from Alto Araguaia to Rondonópolis, a R$700 million project which started in 2009. ALL Rail Operations Technical Sheet ALL Rail Op. Brazil Argentina Consolidated Rail Network ( 000 Km) 12.9 8.4 21.3 Locomotives 966 129 1,095 Railcars 27,688 3,962 31,650 Employees 8,249 2,119 10,368 Business Units Agricultiral Commodities Industrial Products Argentina Ports Santos Paranaguá Rio Grande São Francisco Concessions ALL Malha Norte (MS/MT) 2079 ALL Malha Oeste (MS) 2026 ALL Malha Sul (SP/PR/SC/RS) 2027 ALL Malha Paulista (SP) 2028 Buenos Aires (ARG) Zárate (ARG) Rosário (ARG) Central (ARG) 2023 Mesopotâmica (ARG) 2023

Results Page 10 of 29 DISCUSSION ON ALL RAIL OPERATIONS RESULTS Table 12 - ALL Rail Operations 9,965 9,339 * 6.7% Net Revenues 658.8 626.7 5.1% Net Yield (R$/'000 RTK) 66.1 67.1-1.5% EBITDA 306.1 296.2 3.4% EBITDA Margin 46.5% 47.3% -0.8% ALL Rail Operations net revenues increased 5.1% in, from R$626.7 million in to R$658.8 million, pushed by the 6.7% volume growth and partially offset by a 1.5% decrease in average yield. The yield reduction reflects the spot market freight price pressure in Brazil, as total crop in the country is falling 7.1%. This scenario reduces the transportation demand in all stages of the agricultural logistic chain, impacting directly the spot freight market. Rail Operations EBITDA grew 3.4%, from R$296.2 million in to R$306.1 million, mainly driven by (i) higher volumes and lower yields in Brazil Rail Operations and (ii) a 22.5% increase in Argentina EBITDA. EBITDA margin decreased by 0.8 percentage points, from 47.3% in to 46.5% in. The results of ALL Rail Operations in were marked by: (i) Consolidated rail volumes increased 6.7%, from 9,339 million RTK in to 9,965 million RTK, due to a 7.6% growth in Brazil and a 4.0% decrease in Argentina. Volumes in Brazil were pushed by a good performance in agricultural commodities as we grew volumes 10.7% and a stable quarter in industrial products, growing 1.0%; (ii) Yields in Brazil, measured in R$/000 RTK, went down 3.5%, reflecting the 22.8% decrease in spot market freight prices in 1Q. As our capacity is 70% locked in take-or-pay agreements, we are exposed to spot market freight prices in approximately 30% of our expected volumes; (iii) Another tough quarter in Argentina, as the Government set new import restrictions in the country that decreased substantially the volumes in Mercosur flows, between Brazil and Argentina; (iv) Improvements in our rolling stock productivity, increasing total transportation capacity in our network. Brazilian Operations Table 13 - Balance Sheet Indicators Cash, Banks and Financial Investments 1,606.0 4Q11 2,088.2-23.1% Trade Accounts Receivable 261.2 204.6 27.7% Property, Plant and Equipment 7,305.1 7,074.4 3.3% Total Assets 13,656.7 13,815.2-1.1% Suppliers 399.1 431.8-7.6% Loans, Financing and Debentures 5,492.8 5,579.4-1.6% Shareholders' Equity 3,897.9 3,897.6 0.0% Net Debt 3,886.9 3,491.2 11.3% EBITDA (12 Thrilling Months) 1,454.3 1,449.8 0.3% Net Debt/EBITDA (12 Thrilling Months) 2.7 2.4 11.0% Net Debt/Equity 1.0 0.9 11.3% ALL Brazil volumes increased 7.6% in, from 8,591 million RTK in to 9,247 million RTK, driven by (i) market share gains, mainly in agricultural commodities, (ii) productivity improvements, which allowed the company to increase volumes without a material addition of rolling stock and (iii) a marginal growth in industrial products segment. Net Revenues increased 3.8%, to R$613.1 million in, when compared with a R$590.5 million net revenues of, pushed by volume growth and partially offset by a 3.5% decrease in average yield. EBITDA in Brazilian operations rose 3.3% in, from R$295.1 million in to R$304.8 million, and EBITDA margin decreased marginally 0.3 p.p., to 49.7%.

Table 14 - ALL Brazil 9,247 8,591 * 7.6% Net Revenues 613.1 590.5 3.8% Net Yield (R$/'000 RTK) 66.3 68.7-3.5% EBITDA 304.8 295.1 3.3% EBITDA Margin 49.7% 50.0% -0.3% Results Page 11 of 29 The volume growth was primarily based in productivity improvements, as in we were able to (i) increase locomotive and wagons productivity in 7% and 9%, respectively, and (ii) improve 2% in transit time, pushed by the Mato Grosso Santos corridor. Moreover, the average diesel consumption in Brazil keeps improving, and reached 5.5 litters/ 000 GTK in, 1.9% lower than in. Table 15 - Brazilian Operational Figures Rail Transit Time (Hours) 65:58 67:03-1.6% Locomotives Productivity (RTK's / Locomotives) 8,467.9 7,896.1 7.2% Rail Cars Productivity (RTK's / Rail Cars) 322.3 296.9 8.5% GTK (billion) 15.5 14.5 7.0% Diesel Consumption (Litters/ '000 GTK) 5.5 5.6-1.9% Despite of the 7.6% increase in Brazil volumes, market environment was tough in. The weather conditions, especially in the South Region of Brazil, were even worse than originally anticipated and current crop estimates indicate a 7.1% drop in Brazilian grain production in our coverage area in 2012, as compared to 2011. Excluding the second corn crop (safrinha), which will be harvested only in the beginning of 2H12, total grain production in ALL s region is estimated to fall 17.7%, driven by the states of Paraná and Rio Grande do Sul, and partially offset by a 7.5% crop increase in the state of Mato Grosso. In this market scenario, spot freight prices plunged as compared to. During the harvest season, the freight price is usually pushed up by the increase in transportation demand in all stages of the agricultural logistic chain: (i) from the farms to the countryside warehouses, (ii) in internal consumption flows and (iii) in agricultural exports flows. As the crop dropped, the usual pressure on spot freight prices smoothed. According to information provided by Sifreca Freight Information System (USP/Esalq), spot market freight prices went down 22.8% in average as compared to, when weighted by ALL s transported volumes in each corridor. As our capacity is 70% locked in take-or-pay agreements, we are exposed to spot market freight prices in approximately 30% of our expected volumes. Throughout 2012, we should face a tougher market environment than in 2011. However, the drop in overall transportation demand and the negative price pressure in spot market freight prices are expected to be more pronounced in 1H12, as the second corn crop, which will be harvested in the beginning of 2H12, is estimated to grow 38% as compared to 2011. In our projects we advanced well, as we started to operate our new Terminal in the city of Itiquira MT (120km from Alto Araguaia). The construction of the new rail network to Rondonópolis is well under way and will finish by the end of this year. In Rumo project, we obtained the environmental license needed to construct the first phase of the rail duplication in the state of São Paulo, between Itirapina-SP and Santos. Moreover, the showed once again the strong long term fundamentals of our rail business. ALL rail volume keeps growing even in a very adverse market scenario through market share gains. Therefore, when market environment normalizes and the negative price pressures vanish, we will be able to recover average yields and margins in a bigger volume base. Brazilian Operations - Agricultural Commodities Agricultural commodities volumes increased 10.7% in, from 5,892 million RTK in to 6,521 million RTK, driven by (i) market share gains, especially in sugar segment and (ii) productivity improvements, as we did not add rolling stock materially in 2012. Volume growth was pushed by soy (63.9% growth) and soy meal (13.5% growth), partially offset by decreases in transportation of fertilizers, sugar, corn, wheat and rice.

Results Page 12 of 29 Table 16 - Agricultural Commodities Products (million RTK) Soy 4,297.1 2,622.0 63.9% Soy Meal 993.4 875.6 13.5% Fertilizers 443.1 456.5-2.9% Sugar 407.9 679.4-40.0% Corn 97.6 671.8-85.5% Wheat 239.6 467.1-48.7% Rice 42.2 119.6-64.7% Others 0.0 0.0 na Total 6,520.9 5,892.0 10.7% Agricultural Commodities net revenues increased 6.1%, from R$420.0 million in to R$445.7 million in, and net yield, measured in R$/ 000 RTK, went down 4.1%, to R$68.4, strongly impacted by the reduction in spot freight market prices. As our capacity is 70% locked in take-or-pay agreements, we are exposed to spot market freight prices in approximately 30% of our expected volumes. EBITDA in agricultural commodities grew 5.1%, from R$220.5 million in to R$231.7 million in, pushed by higher volumes but partially offset by a 0.5 percentage points decrease in EBITDA margin. Table 17 - Agricultural Commodities 6,521 5,892 * 10.7% Net Revenues 445.7 420.0 6.1% Net Yield (R$/'000 RTK) 68.4 71.3-4.1% EBITDA 231.7 220.5 5.1% EBITDA Margin 52.0% 52.5% -0.5% Total market share at the ports we serve increased from 70% in to 76% in. In Port of Santos, where sugar exports decreased 60% in, our share increased sharply from 74% to 84%. Agricultural Commodities - Market Share by Port 84% 82% 74% 79% 70% 66% 68% 71% 76% 63% Port of Santos Port of Paranaguá Port of São Port of Rio Francisco do Grande Sul TOTAL Brazilian Operations - Industrial Products Industrial volumes increased 1.0% in, from 2,699 million RTK in to 2,726 million RTK, driven by the 18.5% growth in intermodal flows, partially offset by a 12.1% decrease in pure rail flows. Despite the recovery in our historical growth trend in intermodal volumes, our pure rail operations suffered with a volume drop in civil construction and in fuel products segments. In, Brazilian industrial production showed a slow recovery when compared to last year, as the governmental incentives and the improvements in market conditions should only start to affect the segment along 2Q. Table 18 - Industrial Products 2,726 2,699 * 1.0% Net Revenues 167.4 170.5-1.9% Net Yield (R$/'000 RTK) 61.4 63.2-2.8% EBITDA 73.1 74.6-2.0% EBITDA Margin 43.7% 43.7% -0.1% Industrial Products net revenues decreased 1.9%, from R$170.5 million in to R$167.4 million in, and net yield, measured in R$/ 000 RTK, reduced 2.8%, to R$61.4, impacted by the reduction in spot freight market prices. Despite the freight price pressure have been originated in agricultural segment, much of industrial sector doesn t need special logistics assets to be served, allowing the trucks to change between agricultural and industrial markets looking for the best conditions. As our capacity is 70% locked in take-or-pay agreements, we are

Results Page 13 of 29 exposed to spot market freight prices in approximately 30% of our expected volumes. EBITDA marginally decreased 2.0%, from R$74.6 million in to R$73.1 million in. In intermodal flows, volume increased 18.5% in, mainly driven by (i) steel products (66.6% growth) in which we increased substantially the transportation of iron products between Corumbá and State of São Paulo, (ii) food products (38.8% growth), with a favorable export market for bagged sugar and higher rice volumes between Rio Grande do Sul and São Paulo, and (iii) containers (9.8% growth), reflecting Brado s volumes. The volume growth was partially offset by a 24.6% decrease in wood products. In intermodal products business unit, we still have small market share and, in the long term, we expect to see intermodal flows accounting for a larger portion of total industrial flows. Table 19 - Intermodal Industrial Products (million RTK) Steel Products 570.1 342.1 66.6% Wood Products 248.2 329.1-24.6% Food Products 243.1 175.1 38.8% Containers 265.2 241.6 9.8% Others 46.5 71.1-34.6% Total 1,373.2 1,159.0 18.5% Pure rail industrial products volumes decreased 12.1% in, as compared to last year, mainly driven by a 23.1% volume decrease in construction segment and an 8.8% reduction in fuel products volumes. The reduction in construction volumes reflects the lower industrial activity levels in the construction basic materials market. In fuel products, the lower agricultural transportation reduced the overall diesel consumption, affecting our main flows between the refineries and the central distributors in the countryside. The high market share we have in this segment leave us subject to market s performance. Table 20 - Pure Rail Industrial Products (million RTK) Fuel Products 1,054.3 1,155.9-8.8% Vegetal Oil 22.0 24.5-10.0% Construction 276.6 359.7-23.1% Total 1,352.9 1,540.0-12.1% Argentina Operations In Rail Operations in Argentina, the quarter was market by the set of new import restrictions by the government, which substantially decreased the volumes in the Mercosur flows, between Brazil and Argentina. In this scenario volumes decreased 4.0% in, to 718 million RTK. EBITDA increased 28.5%, from P$2.6 million in to P$3.4 million in, manly driven by a 32.7% net revenues increase and a stable EBITDA margin. Table 21 - ALL Argentina 718 748 * -4.0% Net Revenues 45.7 36.1 26.6% Net Yield (R$/'000 RTK) 63.7 48.3 31.9% EBITDA 1.4 1.1 22.5% EBITDA Margin 3.0% 3.1% -0.1% Denominated in Reais, Argentina s net revenues rose 26.6% in, from R$36.1 million in to R$45.7 million, and EBITDA increased 22.5%, from R$1.1 million in to R$1.4 million in.

Results Page 14 of 29 ALL RAIL OPERATIONS RESULTS Table 22 - ALL Rail Operations Net Revenues 658.8 * 626.7 5.1% COGS (396.0) (366.2) 8.1% Brazil (351.2) (330.6) 6.2% Fuel (108.2) (104.6) 3.4% Outsourced and contracted fleet (15.9) (20.4) -21.8% Labor (54.9) (48.7) 12.7% Maintenance (17.0) (20.2) -15.6% Depreciation and Amortization (94.2) (87.8) 7.3% Other Costs (43.1) (36.5) 18.1% Railcar Rental (17.8) (12.4) 44.2% Argentina (44.8) (35.6) 25.7% SG&A/Other Expenses (31.6) (32.1) -1.6% Equity Earnings (Loss) (13.4) (10.1) 32.6% Operating Profit 217.9 218.3-0.2% Net Financial Expenses (233.1) (220.7) 5.6% IR/Minorities/Others 10.1 1.2 746.7% Net Income (5.2) (1.2) 313.8% Net revenues from Services * Results of are presented in a pro-forma basis, as if Brado and Ritmo had already been created in that period ALL Rail Operations net revenues went up 5.1%, from R$626.7 million in to R$658.8 million in, due to a 3.8% increase in Brazilian operations net revenues, from R$590.5 million to R$613.1 million, and a 26.6% rise in Argentina operations net revenues, from R$36.1 million to R$45.7 million. Cost of Sales ALL Rail Operations costs of sales increased from R$366.2 million in to R$396.0 million in, or 8.1%, due to a 6.2% increase in Brazilian operations cost of sales, from R$330.6 million in to R$351.2 million in, and an expansion of 25.7% in Argentine operations cost of sales, from R$35.6 million to R$44.8 million. In Brazil, costs were mainly impacted by the (i) increase of 3.4% in fuel costs pushed by volume increase, (ii) growth of 7.3% in depreciation and amortization costs, reflecting the investments in our network, and (iii) increase of 44.2% in railcar rentals, due to Rumo project. SG&A/Other Expenses ALL Rail Operations SG&A and other expenses decreased 1.6% or R$0.5 million, from R$32.1 million in to R$31.6 million in. Equity Earnings (Loss) ALL Rail Operations Equity Earnings increased 32.6% or R$3.3 million, from R$10.1 million in to R$13.4 million in, pushed by an increase of 36.5% in Brazil. Financial Result ALL Rail Operations financial result rose 5.6%, from R$220.7 million in to R$233.1 million in, composed by a 4.7% expansion in Brazilian financial result, and a 38.9% expansion in Argentina. The financial result was impacted by the increase in net debt in Brazil and Argentina, partially offset by lower interest rates in Brazil. Net Income As an effect of the results discussed above, ALL Rail Operations net income worsened from a loss of R$1.2 million in to a loss of R$5.2 million in.

Results Page 15 of 29 CAPEX ALL Rail Operations investments increased from R$262.2 million in to R$283.5 million in, or 8.1% reflecting higher investments in Brazil, from R$254.6 million in to R$273.4 million in, and in Argentina, from R$7.6 million in to R$10.1 million in. Brazilian operations expansion CAPEX went up 4.5% in when compared to, and maintenance investments increased 15.0% within the same period. Among the expansion investments of ALL Rail Operations in Brazil, it is worth mentioning: (i) Rondonópolis Project in the amount of R$74.5 million and (ii) investments in our rail infrastructure of R$90.4 million. Table 23 - Investments Maintenance 80.7 70.2 15.0% Expansion 192.6 184.4 4.5% Rondonópolis 74.5 75.1-0.8% Other Expansions 118.1 109.3 8.1% Argentina 10.1 7.6 33.6% Total 283.5 262.2 8.1% Cash Flow ALL Rail Operations cash flow from operating activities worsened from an inflow of R$47.7 million in to an outflow of R$54.0 million in. Cash outflow from investments increased from an outflow of R$262.2 million in to an outflow of R$283.5 million, due to higher CAPEX in Brazil. Cash flow from financing activities changed from an outflow of R$131.1 million in to an outflow of R$144.8 million in. The overall cash variation changed from a negative variation of R$345.5 million in to a negative variation of R$482.3 million in. Table 24 - Cash Flow Change Net Income (cash basis) 94.5 95.9 (1.3) Working Capital (99.0) (48.7) (50.3) Other Accounts Variation (49.5) 0.6 (50.1) Operating Activities (54.0) 47.7 (101.7) Investing Activities (283.5) (262.2) (21.3) Free Cash Flow (337.5) (214.4) (123.0) Financing Activities (144.8) (131.1) (13.7) Change in Cash (482.2) (345.5) (136.7) Closing Balance of Cash 1,606.0 1,629.0 (23.0)

Results Page 16 of 29 ALL RAIL OPERATIONS ATTACHMENTS Table 25 - ALL Rail Op. Cash Flow Net Income (in cash basis) 94.5 95.9 Change (1.3) Net Income (6.2) 0.5 (6.7) Depreciation and amortization 113.4 103.8 9.6 Stock Options 5.4 7.7 (2.3) Interest Expenses (IS-CASH) (3.6) (8.3) 4.7 Deferred Taxes (14.4) (7.8) (6.6) Working Capital (99.0) (48.7) (50.3) Clients (57.5) (71.3) 13.8 Inventory (7.2) 4.0 (11.1) Suppliers (32.6) 22.1 (54.7) Labor (1.7) (3.5) 1.8 Other Accounts Variation (49.5) 0.6 (50.1) Operating Activities (54.0) 47.7 (101.7) Capex (208.9) (187.0) (21.9) Rondonópolis (74.5) (75.1) 0.6 Investing Activities (283.5) (262.2) (21.3) Free Cash Flow (337.5) (214.4) (123.0) Capital increase / Share buyback 5.2 3.0 2.2 Dividends and Interest on own capital 0.0 0.0 0.0 New loans 83.2 60.0 23.2 Debt Payments / Prepayments (233.2) (194.1) (39.1) Financing Activities (144.8) (131.1) (13.7) Change in Cash (482.2) (345.5) (136.7) Opening Balance of Cash 2,088.2 1,974.5 113.6 Closing Balance of Cash 1,606.0 1,629.0 (23.0) Table 26 - ALL Rail Operations Balance Sheet 4Q11 4Q11 Current Assets 2,479.1 2,873.9 Current Liabilities 2,006.7 1,864.8 Cash, banks and financial investments 1,606.0 2,088.2 Loans and financing/debentures 879.3 684.9 Trade accounts receivable 261.2 204.6 Suppliers 399.1 431.8 Inventories 131.5 124.3 Taxes, charges and contributions 82.3 71.5 Taxes Recoverable 382.6 356.6 Lease and concession payable 25.2 26.6 Other receivables 97.9 100.3 Dividends and Interest on own capital 59.7 60.1 Salaries and payroll charges 57.7 83.3 Commercial Leasings 250.0 235.1 Long-Term Assets 1,404.6 1,384.4 Other payables 253.3 271.6 Lease of Concession Agreements 86.8 88.4 Judicial deposits 354.3 351.9 Long-Term Liabilities 7,752.1 8,052.8 Taxes recoverable 889.4 888.7 Loans and financing/debentures 4,613.5 4,894.5 Other receivable 74.1 55.5 Provision for contigencies 180.8 200.9 Lease and concession payable 1,339.8 1,296.4 Commercial Leasings 997.2 1,031.6 Permanent Assets 9,773.0 9,556.8 Real estate credit advances 417.7 11.6 Investments 10.5 9.9 Other payables 203.2 617.9 Intangible 2,457.4 2,472.6 Property, plant and equipment 7,305.1 7,074.4 Shareholders' equity 3,897.9 3,897.6 Total Assets 13,656.7 13,815.2 Total Liab. and shareholders' equity 13,656.7 13,815.2