Sao martinho - Investor Relations Mobile


Notice to the Market

Reappraisal of the Properties Owned by the São Martinho Group

São Paulo, May 05th, 2014 - São Martinho S.A. (Bovespa: SMTO3; Reuters: SMTO3 SA and Bloomberg: SMTO3 BZ), one of Brazil‘s largest sugar and ethanol producers, announces the results of the reappraisal of its properties.

On February 28, 2014, the land owned by the São Martinho Group (58,200 hectares) was reappraised by the independent consulting firm Deloitte Touche Tohmatsu at R$3.1 billion (see details in the table below).


The appraisal included only the undeveloped land, excluding any buildings and improvements or machinery and equipment.

The asset valuation method used for the appraisal is based on the most recent standards and guidelines issued by the Brazilian Association of Technical Standards (ABNT) that govern the concepts, establish the criteria to be adopted in asset valuations, define methods for determining values and validates the degree of substantiation and accuracy of valuations, among other provisions. The Direct Market Data Method was adopted from among the various methods prescribed for valuing property, plant and equipment, as defined by ABNT Standards NBR 14653-1 and NBE 14653-3. The method consists of determining the market value of an asset based on a comparison of its sales price with assets featuring similar characteristics. According to the method, adjustments are made after applying factors that aim to correct any differences between the assets available in the market and the asset that is the subjectmatter of the appraisal.

Details of the appraisal conducted by Deloitte Touche Tohmatsu are presented in the following table:



The reappraisal reports are available in the CVM and company´s IR websites.