1. THE LARGEST BRAZILIAN BIODIESEL
COMPANY

2. Biodiesel aspects
• Biodiesel can be produced from any vegetable oil
such as soy, sunflower, rapeseed, palm or castor
plant, as well as from animal fat:
– Simple and well known production technology
• Renewable and alternative fuel:
– Perfect substitute to mineral diesel fuel - no
need to adapt diesel engines
– Positive energy balance on production
– Up to 78% reduction on carbon emissions
– Reduction of sulfur emissions
– Less risk to environment due to its
biodegradability
– Potential to support social and human
development on rural areas
The best potential biofuel to replace fossil fuels
2

3. Global Market trends
• Strong increase in production and demand for biofuels due to environmental issues
• Exports to European Union increase significantly due to setting of compulsory
targets on future biofuels consumption
• Vegetable oils traded in market maintain high prices due to increase in demand
18.000
Global Biodiesel Production 2002-2010 (‘000 MT)
16.000
14.000 3.800
12.000 CAGR = 39,7%
2.200
10.000 1.000
8.000 1.000
400
6.000
800 10.000
4.000 6.480
2.000 5 30 4.320
1.065
-
2002 2006 2007 2010
Source: Oleoline
Europe USA Rest of the World
The Biodiesel market offers high growth potential, and access to vegetable
oil will be a key factor of success.
3

4. Brazilian market trends
• Brazilian Biodiesel Law: Definition of minimum blending targets of
biodiesel into mineral diesel
2005 - 2007 2008 - 2009 2010 on*
Blend of up to Mandatory 2% Mandatory 5%
2% Minimum Blend Minimum Blend
3. 000
2400
thousand m3
2. 500
2. 000
1. 500
1. 000
840
500 68,5
0
2006 2008/2009 2010
• Brazilian biodiesel market will increase significantly due to large diesel
consumers adoption of higher blends (B20 or B30)
• São Paulo urban transport company starting to use a B20 blend
• Municipality of Belo Horizonte antecipated to March 2007 the mandatory use of
B2 on urban transportation
• Several other companies are testing higher blends – steel, mining, energy
generation, railroads, road and urban transportation
(1) Source: National Agency for Petroleum, Natural Gas and Biofuels – ANP.
(2) * Considering B5 anticipation announced by President Lula on Davos.
4

5. Brasil Ecodiesel Overview
• Major biodiesel producer in
Brazil
• Only producer with a nationwide
presence
• Presence on 19 states, with
approximately 1,400 employees
• Innovative and diversified
strategy on the origination of
raw materials – Network of
42,000 farmers integrating its
activities
• Adherence to the highest
international environmental
practices
Biodiesel Plants: 07
• 3 in operation
• 3 in construction
• 1 in planning
Oil Extraction Units: 05
• 1 in operation
• 4 in construction
Storage Facilities for Vegetable Oil and Grains: 32
5

6. Clear Leadership in Brazilian Market
Installed Capacity (ths m3)
900
800
800
700
600
thousand m3
500
400
282
300
200
100
27
0
2005 2006 2007E
Clear leadership in the Brazilian market, in terms of installed capacity,
biodiesel effectively produced and contracts signed.
Source: National Agency for Petroleum, Natural Gas and Biofuels – ANP.
6

7. Brasil Ecodiesel strategy
Comparison between some feedstocks used for biodiesel production
SOYBEAN SUNFLOWER CASTOR JATROPHA
• 18 - 20% Oil in the • 40 - 45% Oil in the • 45 - 50% Oil in the • 30 - 39% oil in the
seed seed seed seed
• ~440 kg of oil / ha • ~810 kg of oil / ha • ~750 kg of oil / ha • ~780 kg of oil / ha
• Global Commodity • Domestic • Narrow global • Inexistent market
Commodity market
• Technologically • Technologically • Low technological • Low technological
Developed Developed development development
• Non perennial • Non perennial • Non perennial • Perennial
• Edible • Edible • Non Edible • Non Edible
• Intensive in Brazil • Incipient in Brazil • Restricted to Brazil • Incipient in Brazil
7

8. Brasil Ecodiesel Strategy
FOCUS ON NON EDIBLE AND HIGH OIL YIELD CROPS:
• Better Relation Between Oil and Meal/Cake
• Availability of Land
• Labor Intensive – Positive Social and Human Development Impact
SOYA
4,0
SUNFLOWER CASTOR JATROPHA
CURCAS
1,5
1,0 1,0 1,0 1,0 1,0 1,0
Oil Meal Oil Meal Oil Cake Oil Cake
Marginal Use Production Expansion
Soy and palm oil prices have risen sharply in 2006 due to the expectation of
increase in demand that biofuels will cause
8

9. Strategy: Vegetable oils mix
Soy Oil Sunflower
Oil industries Intensive
farmers
Complementarity
Jatropha Curcas
Castor
Diversified sourcing of vegetable oils
Family farmers mitigates risks and benefits from
and Own land Brazilian agricultural potential. Family farmers
9

10. Integrated Operating Process
Contract Raw Material / Tools Training
Transportation Collect and Hull Technical Assistance
Payments Storage Transportation
10

11. Integrated Operating Process
Storage Oil Extraction Storage
Quality Control Storage Tanks Transesterification
Certification Shipment Biodiesel Delivery
11

12. Vegetable oils mix and sourcing
• Brasil Ecodiesel aims to reduce Soy Oil usage.
5%
12%
35%
Feedstock Sourcing
Family farmers
30%
18%
25%
Intensive farmers
70%
45% 20% Own Land
20% 20% Oil Market
2007 2010
OIL MARKET
SUNFLOWER
CASTOR
JATROPHA
12

13. Human and Social Development
• Focus on new crops intensive in labor is part of Brasil Ecodiesel’s
strategy:
– Assured supply – Loyalty programs with feedstock suppliers
– Institutional solidity – Relationship with rural area organizations
– Tax Incentives
Communitarian Production Nucleus Integration Network for Family Farmers
• Santa Clara Nucleus, established in • ~ 100,000 by the end of 2007
2003
76 Regional Offices
covering
1,200 Municipalities
76
13

14. Highlights after IPO
Positive:
• Start of operations of Crateús and Iraquara plants
• Acquisition of two crushing facilities
• Final phase of construction of 3 new plants
• Announcement of B5 anticipation to 2010
• Capex reduction due to optimization on production capacity and land
acquisitions
Negative:
• Ethanol demand in USA increased demand for corn
• Higher corn prices displaced land from soy to corn production
• In Brazil, plantation of corn caused insufficient sourcing of sunflower,
resulting in major soy oil dependency in 2007
• Delays on delivery due to off-takers´ logistic difficulties
Source: National Agency for Petroleum, Natural Gas and Biofuels – ANP.
(1) volume assured by the Company in the biodiesel auctions, less the volume already delivered on 2006.
14

15. Financial Highlights
• Key Financial Figures
2006 Net Loss caused by:
January – December 2006 (In R$ ’000)
- IPO expenses
Total Gross Revenues 66,055 124,8%
- Lower than expected sales Taxes (13,108) -24,8%
Net Revenues 52,947 100,0%
- Increase in feedstock costs
COGS (44,640) -84,3%
Gross Profit 8,307 15,7%
Operational Expenses (14,575) -27,5%
Biodiesel Sales and revenues: IPO Expenses (28,419) -53,7%
35.000,0 25,0%
Financial Result (3,444) -6,5%
23,8% 30.448
30.000,0
20,0% Non- Operational
17,6%
25.000,0
Result 86 0,2%
15,0%
20.000,0 18.296
13.637 Income Taxes (41) -0,1%
15.000,0 12.780 10,0%
8,9% 9,9%
10.000,0 8.414 Net Loss (38,086) -71,9%
5.839 5,0%
4.531
5.000,0
1.839
0,0 0,0%
1Q06 2Q06 3Q06 4Q06
Sales (m3) Gross Revenues (R$ ths) Gross Margin
15

16. Brasil Ecodiesel at the end of 2007
Capex of
US$ 90 million
20,000
own land 7 biodiesel
hectares w/ facilities
Jathopha
800.000 m3 of
Biodiesel capacity
Other 50,000 5 crushing
hectares facilities
of own land
300,000 hectares
with
Agricultural
partners
16

17. Investment Rationale
Leadership
Well Defined
in the
Growth
Brazilian
Strategy
Market
Innovative
Strong
Feedstock
Export
Supply
Potential
Model
Decentralized Integrated
Operating Operating
Structure Process
Human and
Production
Social
Flexibility
Development
17

18. THE LARGEST BRAZILIAN BIODIESEL
COMPANY