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					ab                                                                                                                                                Global Equity Research
                                                                                                                                                   Americas
                                                                                                                                                   Agriculture
 UBS Investment Research
                                                                                                                                                   12-month rating                                                                                      Buy
 Viterra, Inc.                                                                                                                                                                                                                      Unchanged
                                                                                                                                                   12m price target                                              C$11.00/US$10.28
                                                                                                                                                                                                          Prior: C$12.00/US$11.22
 Lowering price target to $11                                                                                                                      Price                                                                        C$9.53/US$8.91

    Modest adjustments to our earnings forecasts following Q409                                                                                    RIC: VT.TO BBG: VT CN

 Following a more detailed analysis of Viterra’s Q4/09 results and discussions with                                                                                                                                        1 February 2010
 management regarding the outlook for the Australian operations and
 potential/timing of operational synergies, we have made modest adjustments to our                                                                 Trading data (local/US$)
 earnings forecasts. Our EPS forecasts for 2010 and 2011 are now $0.54 and $0.73                                                                   52-wk range                                            C$11.42-8.47/US$11.10-6.94
 respectively (from $0.58 and $0.72 previously).                                                                                                   Market cap.                                                             C$3.54bn/US$3.31bn
                                                                                                                                                   Shares o/s                                                                                  372m (COM)
     ABB acquisition continues to hold strategic merits in the long term                                                                           Free float                                                                                                       50%
 We continue to believe that the ABB acquisition holds strategic merits and should                                                                 Avg. daily volume ('000)                                                                                       1,653
 underpin growth and value creation in the long term. In the near-term however, it
                                                                                                                                                   Avg. daily value (C$m)                                                                                           16.8
 has proven to be somewhat more dilutive than initially expected and more complex
 to integrate. We expect ABB’s rural services segment will undergo a meaningful                                                                    Balance sheet data 10/10E
 transformation which will likely improve profitability and establish a foundation                                                                 Shareholders' equity                                                                                 C$3.71bn
 for future growth.
                                                                                                                                                   P/BV (UBS)                                                                                                        1.0x
     Acquisitive appetite is value focused but adds significant execution risk                                                                     Net Cash (debt)                                                                                     (C$0.66bn)
 Management’s M&A ambitions remain key to our investment thesis. Viterra
                                                                                                                                                   Forecast returns
 continues to target acquisition opportunities of grain sourcing assets in exporting
                                                                                                                                                   Forecast price appreciation                                                                               +15.4%
 regions and aims to increase exposure to the food processing segment in the
 medium-to-long term. While this is supportive of valuation to the extent that                                                                     Forecast dividend yield                                                                                        0.0%
 acquisitions are value enhancing, it also adds significant execution risk.                                                                        Forecast stock return                                                                                     +15.4%
                                                                                                                                                   Market return assumption                                                                                       5.5%
    Valuation: Maintain Buy; Price target reduced to $11 from $12 previously                                                                       Forecast excess return                                                                                        +9.9%
 Our $11 price target is DCF driven and assumes a 9% WACC and 2% terminal
 growth rate.                                                                                                                                      EPS (UBS, C$)
                                                                                                                                                                                                          10/10E                                                  10/09
                                                                                                                                                                                     From                      To                     Cons.                      Actual
                                                                                                                                                   Q1E                                   -                 (0.01)                      0.07                       (0.14)
                                                                                                                                                   Q2E                                   -                   0.09                      0.13                         0.11
                                                                                                                                                   Q3E                                   -                   0.37                      0.40                         0.51
 Highlights (C$k)                                      10/08                10/09              10/10E               10/11E              10/12E     Q4E                                   -                   0.09                      0.08                         0.00
 Revenues                                          6,777,566            6,637,065           9,620,641            9,558,916           9,513,887     10/10E                                -                   0.54                      0.69
 EBIT (UBS)                                          425,772              216,050             391,707              456,189             449,534     10/11E                                -                   0.73                      0.81
 Net Income (UBS)                                    288,282              114,620             200,647              270,242             276,431
 EPS (UBS, C$)                                          1.31                 0.45                0.54                 0.73                0.74     Performance (C$)
 Net DPS (UBS, C$)                                      0.00                 0.00                0.00                 0.00                0.00     16.0
                                                                                                                                                            Stock Price (C $)                                                       Rel. S&P/TSX Composite
                                                                                                                                                                                                                                                                          200
                                                                                                                                                   14.0

 Profitability & Valuation                      5-yr hist av.                10/09              10/10E              10/11E               10/12E    12.0                                                                                                                   150
                                                                                                                                                   10.0
 EBIT margin %                                            4.6                  3.3                  4.1                 4.8                  4.7    8.0                                                                                                                   100

 ROIC (EBIT) %                                              -                  6.2                  8.8               10.5                 10.4     6.0
                                                                                                                                                    4.0                                                                                                                   50
 EV/EBITDA (core) x                                       6.8                  6.2                  5.9                 4.9                  4.6    2.0

 PE (UBS) x                                              NM                   20.4                17.6                13.1                 12.8     0.0                                                                                                                   0
                                                                                                                                                          01/07

                                                                                                                                                                  04/07

                                                                                                                                                                          07/07

                                                                                                                                                                                  10/07

                                                                                                                                                                                          01/08

                                                                                                                                                                                                  04/08

                                                                                                                                                                                                           07/08

                                                                                                                                                                                                                   10/08

                                                                                                                                                                                                                            01/09

                                                                                                                                                                                                                                       04/09

                                                                                                                                                                                                                                               07/09

                                                                                                                                                                                                                                                         10/09

                                                                                                                                                                                                                                                                  01/10




 Net dividend yield %                                     0.0                  0.0                  0.0                 0.0                  0.0
                                                                                                                                                                  Price Target (C$) (LH S)                             Stock Price (C$) (LHS)
 Source: Company accounts, Thomson Reuters, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for                  Rel. S&P/TSX C omposite (RHS)
 abnormal and economic items at the analysts' judgement.                                                                                           Source: UBS
 Valuations: based on an average share price that year, (E): based on a share price of C$9.53 on 01 Feb 2010 06:52 EST
                                                                                                                                                                                             www.ubs.com/investmentresearch
 Fadi Chamoun, CFA                                                       Tasneem Azim
 Analyst                                                                 Associate Analyst
 fadi.chamoun@ubs.com                                                    tasneem.azim@ubs.com
 +1-416-350 4855                                                         +1-416-814 3678




 This report has been prepared by UBS Securities Canada Inc
 ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 7.
 UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
 have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making
 their investment decision.
Viterra, Inc. 1 February 2010


Changes to our estimates
Following a more thorough analysis of Q4/09 results and discussions with
management regarding the outlook for Viterra Australia (formerly ABB) and the
potential/timing of operational synergies, we have made modest adjustments to
our earnings forecasts. Our EPS forecasts for 2010 and 2011 are $0.54 and $0.73
respectively (from $0.58 and $0.72 previously).

Changes to our estimates
Table 1: Viterra estimates; before & after (in C$’000s except for per share info)

                                  2010               2011                   2012

Revenue

Before                          $8,726,666         $8,973,617             $9,029,223

After                           $9,620,641         $9,558,916             $9,513,887

% change                          10.2%              6.5%                   5.4%

EBITDA

Before                          $538,863            $596,572               $603,361

After                           $536,913            $600,964               $592,994

% change                          -0.4%              0.7%                   -1.7%

EBIT

Before                          $394,418            $448,494               $450,409

After                           $391,707            $456,189               $449,534

% change                          -0.7%              1.7%                   -0.2%

EPS

Before                            $0.58              $0.72                  $0.75

After                             $0.54              $0.73                  $0.74

% change                          -7.0%              0.7%                   -1.3%

Source: UBS estimates


Price target is lowered to $11 from $12
Our DCF derived price target is lowered to $11 from $12. Our Buy rating
remains unchanged following the recent pullback in Viterra’s share valuation.

We continue to believe that Viterra’s acquisition of ABB has strategic merits
and should underpin growth and value creation in the long-term. In the near-
term however, the acquisition has proven to be more dilutive than originally
forecast, while the integration process has proven more complex. We believe
that ABB’s rural services segment will undergo a meaningful transformation
over the course of the next year which will ultimately improve the profitability
of this segment and establish a foundation for further growth organically or via
acquisitions.

Management’s M&A ambitions remain key to our investment thesis. The
company continues to target acquisition opportunities of grain sourcing assets in
exporting regions including Eastern Europe and aims to increase exposure to the
food processing segment in the medium-to-long term. While this is supportive of
valuation to the extent that acquisitions are value enhancing, it also adds
significant execution risk.

                                                                                       UBS 2
Viterra, Inc. 1 February 2010


Q4/09 underwhelms
Viterra reported Q4/F09 EPS of $0.00 missing UBS and consensus expectations
of $0.04 and $0.08 respectively. We estimate that core earnings were weaker
when excluding FX gains and other one time items. Viterra included five weeks
of Viterra Australia’s financial performance in its consolidated results.

Although consolidated revenues of $1.4 billion were ahead of our estimate of
$1.3 billion, consolidated EBITDA and EBIT of $40.2 million and $8.7 million
respectively were below our estimates of $89.5 million and $42.5 million. The
underperformance was primarily driven by weaker than expected operational
performance in all lines of business (particularly Agri-products) with the
exception of Grain Handling & Marketing (GH&M).

Viterra maintains a strong liquidity profile finishing the year with ~$1 billion of
cash and short term investments on its balance sheet and $223 million operating
free cash flow, in line with our estimates. Viterra’s financial ratios remained
stable at the end of the year with total debt-to-capital ratio of 31% and long-
term-debt-to-capital of 25.2% in line with UBS estimates.

Viterra intends to utilize $300 million of its surplus cash to reduce seasonal
drawings on its AUD $1.2 billion operating facility related to Viterra Australia.
As a result, the company’s consolidated financial expense is expected to be
reduced by ~$16 million annually. A $1.2 billion credit facility and excess cash
are to be used towards Viterra’s future growth plans.

Outlook: GH&M / Agri-products to improve
Viterra estimates 2009/10 production for the six major grains to be 51.8 million
metric tonnes, ~5% above the 10-year average but ~9% below last year, with
generally good crop quality. Fiscal 2010 industry receipts for Western Canada
are estimated to be between 32 and 33 million tonnes for the six major grains.

Although Western Canadian exports of grains and oilseed are expected to be
below last year’s record highs, demand for Canadian originated commodities is
expected to be above the historical average.

In terms of regulated grains, the CWB 2010 export target for wheat and barley is
18.7 million tonnes (versus 18.3 million tonnes in 2009) and if achieved would
be the second highest export program after 2000 when 19 million tonnes were
shipped.

With respect open market grains, Viterra acknowledged that import restrictions
in China could potentially hurt its canola exports but believes that demand from
other regions should remain strong and provide, at least, a partial offset. It was
noted that Agriculture Canada’s projection of 6 million tonnes is the second
largest figure on record for canola, despite being 24% lower than last year’s
record level. Further, greater domestic crush capacity should underpin robust
demand for canola. By the same token, anticipated capacity additions by some
competitors could pressure Viterra’s margins in the near term. However,
demand for healthy oils is likely underpin growth in this industry over the long
term.




                                                                                      UBS 3
Viterra, Inc. 1 February 2010


In Australia, total grain production is currently forecast to be 36.3 million of
which 7.5 million tonnes (40% over the five-year average) are being produced in
South Australia where Viterra Australia is based. Management expects receivals
of 6.5 to 7.0 million tonnes in fiscal 2010, or 51% higher than the historical five-
year average. To date, Viterra Australia has already received 6.3 million tonnes.

Blended grain margins for its Canadian and Australian operations are expected
to be between $30 and $33 per tonne in fiscal 2010 based on current industry
information. We estimate $700 million of gross profit in the Grain Handling
segment in 2010 and just over $300 million in EBIT.

Despite a difficult year for fertilizer sales in fiscal 2009, management believes
that based on reasonable grain prices, farmers are going to go back to more
normal fertility rates, supported by nitrogen prices that are back to 2005/6 levels.
Indeed fertilizer movement to farms thus far has been stronger than last year
despite a late harvest and the inability of growers in certain areas to complete
fall applications.

Management expects to see fertilizer levels climb back to more traditional rates
and expects volumes of 4.3 million tonnes for Western Canada. Western
Canadian spring seed bookings are progressing as expected while equipment
sales have been strong due to increased producer cash flow in recent years.
Viterra believes this trend will continue in 2010.

We expect a full recovery in Canadian operations with gross margin in the low
20% while Australian profitability is expected to remain a drag on profitability
as the segment undergoes restructuring. Overall we are projecting EBIT of $160
million in 2010.

Viterra’s Food Processing operations are anticipated to perform well in 2010
supported by recovering demand for whole grain, nutritional food and oat
ingredients. Further, management expects an increase in private/label store
brand ready-to-eat cereals and greater consumption of oatmeal given current
economic challenges. Viterra’s Australian malt business is expected to benefit
from stabilized margins and more normalized levels of malt demand going
forward.




                                                                                       UBS 4
Viterra, Inc.

  Income statement (C$k)                                     07/05                07/06               10/07                10/08                10/09              10/10E        % ch               10/11E        % ch               10/12E        % ch
  Revenues                                               1,385,730            1,575,656            3,535,174           6,777,566            6,637,065            9,620,641         45.0           9,558,916         -0.6           9,513,887         -0.5
  Operating expenses (ex depn)                         (1,315,200)          (1,497,771)          (3,269,352)         (6,244,962)          (6,311,874)          (9,083,729)         43.9         (8,957,952)         -1.4         (8,920,893)         -0.4
  EBITDA (UBS)                                               70,530               77,885             265,822             532,604              325,191              536,913         65.1             600,964         11.9             592,994         -1.3
  Depreciation                                             (26,460)             (27,727)             (62,940)          (106,832)            (109,141)            (145,206)         33.0           (144,775)         -0.3           (143,460)         -0.9
  Operating income (EBIT, UBS)                               44,070               50,158             202,882             425,772              216,050              391,707         81.3             456,189         16.5             449,534         -1.5
  Other income & associates                                        0            (11,728)               10,258            (10,003)                3,600             (14,043)           -                    0           -                    0           -
  Net interest                                             (37,050)             (30,953)             (33,427)            (37,785)             (61,163)             (95,063)        55.4             (75,567)       -20.5             (60,194)       -20.3
  Abnormal items (pre-tax)                                         0                   0                    0                   0                    0                    0           -                    0           -                    0           -
  Profit before tax                                           7,020                7,477             179,713             377,984              158,487              282,601         78.3             380,623         34.7             389,339          2.3
  Tax                                                            (3)            (14,321)             (32,788)            (89,702)             (43,867)             (81,954)        86.8           (110,381)         34.7           (112,908)          2.3
  Profit after tax                                            7,017              (6,844)             146,925             288,282              114,620              200,647         75.1             270,242         34.7             276,431          2.3
  Abnormal items (post-tax)                                   5,072                7,375                    0                   0                    0                    0           -                    0           -                    0           -
  Minorities / pref dividends                                      0                   0                    0                   0                    0                    0           -                    0           -                    0           -
  Net income (local GAAP)                                    12,089                  531             146,925             288,282              114,620              200,647         75.1             270,242         34.7             276,431          2.3
  Net Income (UBS)                                            7,017              (6,844)             146,925             288,282              114,620              200,647         75.1             270,242         34.7             276,431          2.3

  Tax rate (%)                                                     0                 192                   18                   24                  28                   29          4.8                  29          0.0                  29          0.0
  Pre-abnormal tax rate (%)                                        0                 192                   18                   24                  28                   29          4.8                  29          0.0                  29          0.0

  Per share (C$)                                             07/05                07/06               10/07                10/08                10/09              10/10E        % ch               10/11E        % ch               10/12E        % ch
  EPS (local GAAP)                                             0.43                 0.01                 0.92                1.31                 0.45                 0.54        18.7                0.73         34.7                0.74           2.3
  EPS (UBS)                                                    0.25               (0.08)                 0.92                1.31                 0.45                 0.54        18.7                0.73         34.7                0.74           2.3
  Net DPS                                                      0.00                 0.00                 0.00                0.00                 0.00                 0.00           -                0.00            -                0.00             -
  Cash EPS                                                     1.19                 0.25                 1.31                1.80                 0.89                 0.93         4.6                1.12         20.0                1.13           1.2
  BVPS                                                         1.61                 1.95                 6.22                9.29                14.80                 9.98       -32.6               10.71          7.3               11.45           6.9

  Balance sheet (C$k)                                        07/05                07/06               10/07                10/08                10/09              10/10E        % ch               10/11E        % ch               10/12E        % ch
  Cash and equivalents                                      82,109              110,471              85,361              669,665            1,033,669            1,228,542         18.9          1,657,010          34.9          2,029,961          22.5
  Other current assets                                     265,333              279,947           1,366,410            1,762,158            2,099,480            2,162,315          3.0          2,169,272           0.3          2,169,782           0.0
  Total current assets                                     347,442              390,418           1,451,771            2,431,823            3,133,149            3,390,857          8.2          3,826,282          12.8          4,199,743           9.8
  Net tangible fixed assets                                251,489              255,552           1,192,620            1,154,859            2,411,105            2,385,974         -1.0          2,360,104          -1.1          2,346,261          -0.6
  Net intangible fixed assets                                    0                    0             317,018              322,254              742,740              742,740          0.0            742,740           0.0            742,740           0.0
  Investments / other assets                               122,929              128,060              80,686               79,556              135,754              135,754          0.0            135,754           0.0            135,754           0.0
  Total assets                                             721,860              774,030           3,042,095            3,988,492            6,422,748            6,655,325          3.6          7,064,880           6.2          7,424,497           5.1
  Trade payables & other ST liabilities                    136,795              148,905             723,945              928,596            1,095,939            1,145,109          4.5          1,156,986           1.0          1,155,252          -0.1
  Short term debt                                           13,913               22,128             360,764               33,127              309,873              295,488         -4.6            600,295         103.2            664,351          10.7
  Total current liabilities                                150,708              171,033           1,084,709              961,723            1,405,812            1,440,597          2.5          1,757,281          22.0          1,819,603           3.5
  Long term debt                                           148,928              101,917             307,413              595,385            1,265,435            1,188,822         -6.1          1,000,412         -15.8          1,009,986           1.0
  Other long term liabilities                               40,983               39,650             175,352              230,659              242,582              316,341         30.4            327,379           3.5            338,670           3.4
  Total liabilities                                        340,619              312,600           1,567,474            1,787,767            2,913,829            2,945,760          1.1          3,085,072           4.7          3,168,259           2.7
  Equity & minority interests                              381,241              461,430           1,474,621            2,200,725            3,508,919            3,709,566          5.7          3,979,808           7.3          4,256,239           6.9
  Total liabilities & equity                               721,860              774,030           3,042,095            3,988,492            6,422,748            6,655,325          3.6          7,064,880           6.2          7,424,497           5.1

  Cash flow (C$k)                                            07/05                07/06               10/07                10/08                10/09              10/10E        % ch               10/11E        % ch              10/12E         % ch
  Net income                                                 12,089                  531             146,925              288,282             114,620              200,647        75.1              270,242         34.7             276,431          2.3
  Depreciation                                               26,460               27,727              62,940              106,832             109,141              145,206        33.0              144,775         -0.3             143,460         -0.9
  Net change in working capital                            (19,677)             (20,260)           (152,549)            (172,545)             233,940             (13,665)           -                4,920            -              (2,244)           -
  Other (operating)                                          14,142               50,375              32,285               61,152                1,155              73,759      6286.0               11,038        -85.0              11,291          2.3
  Net cash from operations                                   33,014               58,373              89,601              283,721             458,856              405,947       -11.5              430,975          6.2             428,938         -0.5
  Capital expenditure                                      (11,322)             (26,246)             318,967             (50,250)            (71,082)            (120,075)        68.9            (118,905)         -1.0           (129,617)          9.0
  Net (acquisitions) / disposals                                  0                    0         (1,329,171)             (31,755)           (789,925)                    0           -                    0            -                    0           -
  Other changes in investments                                (551)              (1,174)              (7,924)              15,122              (9,479)                   0           -                    0            -                    0           -
  Cash from investing activities                           (11,873)             (27,420)         (1,018,128)             (66,883)           (870,486)            (120,075)       -86.2            (118,905)         -1.0           (129,617)          9.0
  Increase/(decrease) in debt                              (83,764)             (56,556)              79,929             (43,545)             358,976             (90,404)           -              116,398            -              73,630            -
  Share issues / (repurchases)                             149,601                63,275             920,083              460,479             450,007                    0           -                    0            -                    0           -
  Dividends paid                                                  0                    0                    0                   0                    0                   0           -                    0            -                    0           -
  Other cash from financing                                (21,991)              (6,850)            (49,464)             (29,139)            (31,025)                    0           -                    0            -                    0           -
  Cash from financing activities                             43,846                (131)             950,548              387,795             777,958             (90,404)           -              116,398            -              73,630        -36.7

  Cash flow chge in cash & equivalents                       64,987              30,822               22,021             604,633              366,328              195,467             -            428,468             -            372,951             -
  FX / non cash items                                      (10,506)              (2,460)            (47,131)             (20,329)              (2,324)               (594)             -                  0             -                  0             -
  Bal sheet chge in cash & equivalents                       54,481              28,362             (25,110)             584,304              364,004              194,873             -            428,468             -            372,951             -

  Core EBITDA                                                92,810             110,974             322,308               607,949             418,219              671,803         60.6             735,765          9.5             727,795          -1.1
  Maintenance capital expenditure                          (26,460)             (27,727)            (62,940)            (106,832)           (109,141)            (145,206)         33.0           (144,775)         -0.3           (143,460)          -0.9
  Maintenance net working capital                                 0                    0                   0                    0                   0                    0            -                   0            -                   0             -
  Operating free cash flow, pre-tax                          66,350               83,247            259,368               501,117             309,078              526,598         70.4             590,991         12.2             584,335          -1.1
Source: Company accounts, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for abnormal and economic items at the analysts' judgement. Note: For some companies, the data represents an extract of the full
company accounts.




                                                                                                                                                                                                                                       UBS 5
Global Equity Research
Americas

Agriculture                                                                                                                                                                                                                 Viterra, Inc.
12-month rating                                                                                        Buy
12m price target                                                                                 C$11.00          Valuation (x)                                               5Yr Avg            10/08          10/09        10/10E          10/11E         10/12E
                                                                                                                  P/E (local GAAP)                                                   NM              9.3           20.4           17.6           13.1           12.8
                                                                                                                  P/E (UBS)                                                          NM              9.3           20.4           17.6           13.1           12.8
                                                                                                                  P/CEPS                                                             8.9             6.8           10.4           10.2            8.5            8.4
                                                                                                                  Net dividend yield (%)                                             0.0             0.0            0.0            0.0            0.0            0.0
Company profile                                                                                                   P/BV                                                               1.6             1.3            0.6            1.0            0.9            0.8
Viterra is Canada's premier agri-business involved in grain handling                                              EV/revenue (core)                                                  0.6             0.5            0.4            0.4            0.4            0.4
and marketing, agri-products, agri-food processing, livestock feed and                                            EV/EBITDA (core)                                                   6.8             5.2            6.2            5.9            4.9            4.6
services and financial products. Through its involvement at almost                                                EV/EBIT (core)                                                     8.5             6.3            8.3            7.5            6.1            5.7
every point of the value chain, Viterra bundles agri-products with                                                EV/OpFCF (core)                                                    8.4             6.3            8.4            7.5            6.2            5.7
production contracts, trucking premiums, back financing and                                                       EV/op. invested capital                                              -             1.4            0.7            0.9            0.8            0.8
marketing programs to attract grain commodities into its efficient
handling network in Western Canada. Viterra's strategy is essentially                                             Enterprise value (C$k)                                                         10/08          10/09        10/10E          10/11E         10/12E
growth through acquisition with a focus on international markets to                                               Average market cap                                                         2,895,091      2,338,882      3,541,300       3,541,300      3,541,300
diversify future earnings/cash flow streams.                                                                      + minority interests                                                               0              0              0               0              0
                                                                                                                  + average net debt (cash)                                                    270,832        250,243        398,703          99,732      (205,963)
                                                                                                                  + pension obligations and other                                                    0              0              0               0              0
                                                                                                                  - non-core asset value                                                             0              0              0               0              0
                                                                                                                  Core enterprise value                                                      3,165,922      2,589,125      3,940,003       3,641,033      3,335,337

                                                                                                                  Growth (%)                                                  5Yr Avg            10/08          10/09        10/10E          10/11E         10/12E
Value (EV/OpFCF & P/E)                                                                                            Revenue                                                           48.1           91.7            -2.1           45.0           -0.6            -0.5
   10.0x                                                                                                25.0x
                                                                                                                  EBITDA (UBS)                                                      57.1          100.4           -38.9           65.1           11.9            -1.3
                                                                                                                  EBIT (UBS)                                                        61.4          109.9           -49.3           81.3           16.5            -1.5
    8.0x                                                                                                20.0x
                                                                                                                  EPS (UBS)                                                         97.1           42.7           -65.2           18.4           34.7             2.3
    6.0x                                                                                                15.0x
                                                                                                                  Cash EPS                                                          71.9           36.9           -50.5            4.6           20.0             1.2
    4.0x                                                                                                10.0x     Net DPS                                                              -              -               -              -              -               -
    2.0x                                                                                                5.0x      BVPS                                                              84.3           49.2            59.4          -32.6            7.3             6.9
    0.0x                                                                                                0.0x
           10/08                 10/09              10/10E                 10/11E                    10/12E       Margins (%)                                                 5Yr Avg            10/08          10/09        10/10E          10/11E         10/12E
                                     EV/OpFCF (LHS)        P/E (RHS)
                                                                                                                  EBITDA / revenue                                                    6.3            7.9            4.9            5.6            6.3             6.2
                                                                                                                  EBIT / revenue                                                      4.6            6.3            3.3            4.1            4.8             4.7
                                                                                                                  Net profit (UBS) / revenue                                          2.0            4.3            1.7            2.1            2.8             2.9
Profitability
  7.00%                                                                                                 20.0%     Return on capital (%)                                         5Yr Avg           10/08          10/09         10/10E         10/11E         10/12E
  6.00%                                                                                                           EBIT ROIC (UBS)                                                     -            18.8            6.2             8.8          10.5           10.4
                                                                                                        15.0%
                                                                                                                  ROIC post tax                                                       -            14.3            4.5             6.3            7.4            7.4
  5.00%
                                                                                                        10.0%     Net ROE                                                           7.8            15.7            4.0             5.6            7.0            6.7
  4.00%

  3.00%
                                                                                                        5.0%      Coverage ratios (x)                                           5Yr Avg           10/08          10/09         10/10E         10/11E         10/12E
  2.00%                                                                                                 0.0%
                                                                                                                  EBIT / net interest                                               4.4            11.3            3.5             4.1            6.0            7.5
                   10/08           10/09         10/10(E)           10/11(E)          10/12(E)
                                                                                                                  Dividend cover (UBS EPS)                                            -               -              -               -              -              -
                                   EBIT margin (LHS)          ROIC (RHS)
                                                                                                                  Div. payout ratio (%, UBS EPS)                                      -               -              -               -              -              -
                                                                                                                  Net debt / EBITDA                                                   -             0.5            3.1             1.2            0.6            0.1
ROE v Price to book value
                                                                                                                  Efficiency ratios (x)                                         5Yr Avg           10/08          10/09         10/10E         10/11E         10/12E
  16.0%                                                                                                 1.4x      Revenue / op. invested capital                                      -             3.0            1.9             2.2            2.2            2.2
  14.0%                                                                                                 1.3x
                                                                                                                  Revenue / fixed assets                                            4.6             4.5            2.9             3.1            3.1            3.1
  12.0%                                                                                                 1.1x
                                                                                                                  Revenue / net working capital                                       -             7.5            5.1             6.7            6.7            6.6
  10.0%                                                                                                 1.0x
   8.0%                                                                                                 0.9x
                                                                                                                  Investment ratios (x)                                         5Yr Avg           10/08          10/09         10/10E         10/11E         10/12E
   6.0%                                                                                                 0.8x
   4.0%                                                                                                 0.6x
                                                                                                                  OpFCF / EBIT                                                      1.3             1.2            1.4             1.3            1.3            1.3
   2.0%                                                                                                 0.5x      Capex / revenue (%)                                               NM              0.7            1.1             1.2            1.2            1.4
                   10/08           10/09         10/10(E)           10/11(E)          10/12(E)
                                                                                                                  Capex / depreciation                                              NM              0.5            0.7             0.8            0.8            0.9
                              ROE (LHS)                       Price to book value (RHS)

                                                                                                                  Capital structure (%)                                         5Yr Avg           10/08          10/09         10/10E         10/11E         10/12E
Growth (UBS EPS)                                                                                                  Net debt / total equity                                             -            11.0           28.5           17.8             9.4            1.7
                                                                                                                  Net debt / (net debt + equity)                                      -             9.9           22.2           15.1             8.6            1.7
   10000000                                                                                             60%
                                                                                                                  Net debt (core) / EV                                            12.86             8.6            9.7           10.1             2.7          (6.2)
                                                                                                        40%
    9000000                                                                                                     Source: Company accounts, UBS estimates. (UBS) valuations are stated before goodwill-related charges and other adjustments for abnormal and economic
                                                                                                        20%
    8000000                                                                                                     items at the analysts' judgement.
                                                                                                        0%
                                                                                                                Valuations: based on an average share price that year, (E): based on a share price of C$9.53 on 01 Feb 2010 06:52 EST Market cap(E) may include forecast
    7000000                                                                                             -20%
                                                                                                                share issues/buybacks.
                                                                                                        -40%
    6000000
                                                                                                        -60%
    5000000
                      10/08           10/09        10/10(E)           10/11(E)            10/12(E)
                                                                                                        -80%
                                                                                                                Fadi Chamoun, CFA                                                           Tasneem Azim
                               Revenue (LHS)                  UBS EPS Growth (RHS)
                                                                                                                Analyst                                                                     Associate Analyst
                                                                                                                fadi.chamoun@ubs.com                                                        tasneem.azim@ubs.com
                                                                                                                +1-416-350 4855                                                             +1-416-814 3678




                                                                                                                                                                                                                                                   UBS 6
Viterra, Inc. 1 February 2010




    Viterra, Inc.

Viterra is Canada's premier agri-business involved in grain handling and
marketing, agri-products, agri-food processing, livestock feed and services and
financial products. Through its involvement at almost every point of the value
chain, Viterra bundles agri-products with production contracts, trucking
premiums, back financing and marketing programs to attract grain commodities
into its efficient handling network in Western Canada. Viterra's strategy is
essentially growth through acquisition with a focus on international markets to
diversify future earnings/cash flow streams.




    Statement of Risk

Viterra's strategy is rooted in growth through acquisition and therefore
inherently risky. Volatile weather patterns significantly impact Viterra's sales
mix, grain-handling volumes and level of agri-product sales. Viterra bears
exposure to commodity price volatility with respect to open market grains.
While Viterra takes steps to hedge this exposure limitations exist with respect to
the size of forward contacts, and also the lack of regulated futures market for
certain specialty crops. In addition to this Viterra is subject to regulatory risk,
labour union risk and foreign exchange risk.



    Analyst Certification

Each research analyst primarily responsible for the content of this research
report, in whole or in part, certifies that with respect to each security or issuer
that the analyst covered in this report: (1) all of the views expressed accurately
reflect his or her personal views about those securities or issuers; and (2) no part
of his or her compensation was, is, or will be, directly or indirectly, related to
the specific recommendations or views expressed by that research analyst in the
research report.




                                                                                       UBS 7
Viterra, Inc. 1 February 2010


Required Disclosures

This report has been prepared by UBS Securities Canada Inc, an affiliate of UBS AG. UBS AG, its subsidiaries,
branches and affiliates are referred to herein as UBS.

For information on the ways in which UBS manages conflicts and maintains independence of its research product;
historical performance information; and certain additional disclosures concerning UBS research recommendations,
please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is
not a reliable indicator of future results. Additional information will be made available upon request.

UBS Investment Research: Global Equity Rating Allocations
                                                                                              1                                2
 UBS 12-Month Rating            Rating Category                                     Coverage                      IB Services
 Buy                            Buy                                                       48%                             40%
 Neutral                        Hold/Neutral                                              40%                             35%
 Sell                           Sell                                                      13%                             26%
                                                                                              3                               4
 UBS Short-Term Rating          Rating Category                                     Coverage                      IB Services
 Buy                            Buy                                               less than 1%                            17%
 Sell                           Sell                                              less than 1%                            67%
1:Percentage of companies under coverage globally within the 12-month rating category.
2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within
the past 12 months.
3:Percentage of companies under coverage globally within the Short-Term rating category.
4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided
within the past 12 months.

Source: UBS. Rating allocations are as of 31 December 2009.
UBS Investment Research: Global Equity Rating Definitions
 UBS 12-Month Rating            Definition
 Buy                            FSR is > 6% above the MRA.
 Neutral                        FSR is between -6% and 6% of the MRA.
 Sell                           FSR is > 6% below the MRA.
 UBS Short-Term Rating          Definition
                                Buy: Stock price expected to rise within three months from the time the rating was assigned
 Buy
                                because of a specific catalyst or event.
                                Sell: Stock price expected to fall within three months from the time the rating was assigned
 Sell
                                because of a specific catalyst or event.




                                                                                                                          UBS 8
Viterra, Inc. 1 February 2010


KEY DEFINITIONS
 Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12
months.
 Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a
forecast of, the equity risk premium).
 Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are
subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation.
 Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any
change in the fundamental view or investment case.
Equity Price Targets have an investment horizon of 12 months.

EXCEPTIONS AND SPECIAL CASES
UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management,
performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell:
Negative on factors such as structure, management, performance record, discount.
Core Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment Review
Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's
debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating.
When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece.



Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not
registered/qualified as research analysts with the NASD and NYSE and therefore are not subject to the restrictions contained in
the NASD and NYSE rules on communications with a subject company, public appearances, and trading securities held by a
research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any,
follows.
UBS Securities Canada Inc: Fadi Chamoun, CFA; Tasneem Azim.


Company Disclosures
 Company Name                                  Reuters     12-mo rating Short-term rating                Price        Price date
              5
 Viterra, Inc.                                  VT.TO              Buy                N/A               C$9.53       29 Jan 2010
Source: UBS. All prices as of local market close.
Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing
date

5.      UBS Securities Canada Inc or an affiliate expect to receive or intend to seek compensation for investment banking
        services from this company/entity within the next three months.


The analyst responsible for this report has reviewed the material operations of the issuer and/or met with senior management.
Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report.




                                                                                                                              UBS 9
                                          No Rating
                                               Buy
                                                                  0.0
                                                                        5.0
                                                                              10.0
                                                                                     15.0
                                                                                                                Viterra, Inc. (C$)


                                                      01-Jan-05

                                                      01-Apr-05
                                                                                                                                     Viterra, Inc. 1 February 2010




                                                      01-Jul-05

                                                      01-Oct-05




         Source: UBS; as of 29 Jan 2010
                                                      01-Jan-06

                                                      01-Apr-06

                                                      01-Jul-06


                                                      01-Oct-06

                                                      01-Jan-07
                                                                                            Price Target (C$)




                                                      01-Apr-07


                                                      01-Jul-07

                                                      01-Oct-07


                                                      01-Jan-08
                                                                                            Stock Price (C$)




                                                      01-Apr-08

                                                      01-Jul-08


                                                      01-Oct-08


                                                      01-Jan-09

                                                      01-Apr-09

                                                      01-Jul-09


                                                      01-Oct-09

                                                      01-Jan-10




UBS 10
Viterra, Inc. 1 February 2010




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