Global Ethanol Market National Ethanol Conference

New Orleans, LA | February, 15th – 17th 2016

Alexandre Z. Ades

Our Company

Eco-Energy - leading midstream company centered on the marketing, trading, transportation, and distribution of biofuels in the United States.

Copersucar S.A. – our partner – is the largest marketer of ethanol and sugar in Brazil.

Together, the two companies form the largest marketing, trading and logistics ethanol company in the world, with more than $8 billion in annual revenue from biofuels activities alone.

15%

[VALUE]

Eco-Energy US Exports Share

Eco-Energy US Total Share

2

Agenda

1 2015

2 Brazil

3 US Imports Parity

4 Global Exports Parity

5 2016

6 Conclusions

Source: ITC, SECEX, Green Pool and Eco-energy

2015

30 billion gallon global market

PRODUCTION CONSUMPTION

Unit: million gallons

4

2015

3 billion gallon international trade

OUT

IN

Source: ITC, SECEX, Green Pool and Eco-energy

1.4

0.2

Europe

North Africa / Arabian Gulf

Asia

West Africa

Brazil

Latin America

North America

5

2015

6

1.2 billion gallons traded overseas

4 routes accounted for 70% of all overseas flows

Source: ITC, SECEX, Green Pool and Eco-energy

2015

7

Mexico

Jamaica

Peru

Brazil

West Africa

North Africa

Europe

Arabian Gulf

India

China South Korea, Japan and Singapore

Philippines

US ETBE

Puerto Rico

1.1 billion gallons from US and BR

US RFS / LCFS

Source: ITC, SECEX, Green Pool and Eco-energy

Unit: million gallons

2015

8

Asia accounts for 43% of 2015 overseas demand, or 460 million

gallons

US/Brazil overseas supply ratio continues to trend towards the US with

56% of the supply in 2015

Destination

Source: ITC, SECEX, Green Pool and Eco-energy

1.1 billion gallons from US and BR

Origin

Agenda

1 2015

2 Brazil

3 US Imports Parity

4 Global Exports Parity

5 2016

6 Conclusions

10

Brazil

Sugarcane Crush

Uneventful weather forecast and cane availability supporting the increase on sugarcane crush to 630 million tons versus 603 million tons at 15/16 crop

135kg/t TRS versus 131kg/t at 15/16

Sugar Production

Sugar Mix increase due to a global deficit based on India’s anticipated reduced supply

Record high sugar production threatened by industry capacity in Brazil

Ethanol Production

Hydrous production sustained on the back of cash flow necessity

Anhydrous production on-demand to meet ANP legislation and potential exports

16/17 Center-south supply

Source: UNICA and Copersucar

11

Brazil

Gasoline

Government controlled gasoline prices remain high despite international downfall

Otto Cycle (Total Gasoline + Ethanol)

Otto Cycle consumption to decrease by 1.6% ‘16 versus ’15 on deteriorating economical situation

Ethanol Demand

Hydrous (E100) demand remains strong in spite of parity exceeding 70%

16/17 Center-south demand

Source: ANP, ANFAVEA and Copersucar

12

Brazil

Supply: 7.2b gal Demand: 6.7b gal Carry-out: 0.5b gal

16/17 Ethanol prices ex-mill

Supply: 7.9b gal Demand: 7.7b gal Carry out: 0.2b gal

Source: BMF, ESALQ and Copersucar

Supply: 7.7b gal Demand: 7.3b gal Carry out: 0.4b gal

BRL/cbm

Trades as of Feb, 5th

13

Brazil

Growing disparity between total fuel production and demand

Source: MME and ANP

Agenda

1 2015

2 Brazil

3 US Imports Parity

4 Global Exports Parity

5 2016

6 Conclusions

15

US Imports Parity

Import arb is based on flat price, basis, forex, RFS and LCFS

Source: OPIS, ESALQ, CME and BMF Trades as of Feb, 5th

16

Global Exports Parity

FOB prices seasonal, trending lower with future pointing towards US

Source: OPIS, ESALQ, CME and BMF

‘12 ‘13 ‘14 ‘15 ‘16

Trades as of Feb, 5th

Agenda

1 2015

2 Brazil

3 US Imports Parity

4 Global Exports Parity

5 2016

6 Conclusions

18

2016

Total overseas demand flat year over year

Bullish

China increases imports based on economics

India increases its mandate fulfillment

California imports based on LCFS and potential FX move

Bearish

Discretionary Blend reduced on plunging oil prices

Brazil imports limited by offload storage capacity

Risk of China policy change (i.e. reducing corn prices)

19

2016

BR/US supply ratio still points towards US

BR

Keeps its captive markets in Far East

Exports to California as LCFS premiums sustain and crushing season coincides to US driving season

Supplies part of India and China import demand increase

US

Most competitive prices

Supplier of fuel grade markets and discretionary blend, if any

Increased ability to supply industrial grades

20

2016

RFS/LCFS

Sugar

Unit: million gallons

Sugar prices below 12.5

cts/lbp

BRL/USD Exchange Rate

above 4.50

China and India import programs

Crude Oil prices above $50/bbl

Corn Prices below $3.50/bu

Main variables to consider Bullish

Bearish

US BR

China policy change

Crude Oil prices kept below $30/bbl

21

Conclusions

Take-aways

Overseas demand flat year over year with China and India potentially replacing discretionary blend

Brazil/US ratio continuously pointing towards US

US imports to be opportunistic and limited in 2016

US remains significant net exporter

Brazil ethanol domestic consumption increasing versus its ethanol production in 16/17

Brazil short fuel mid and long term

Thank you