Earnings release 1 q10 presentation

BRASIL ECODIESEL S.A.

NBome

BRASIL ECODIESEL S.A.Investor Relations

& Business Development


Brazilian Biodiesel Market

The Company

Results – 1Q10

Perspectives

Strategy

BRASIL ECODIESEL S.A. | Brazilian Diesel Market - What is Biodiesel?

Technology Raw Material

Key Factor of Success:technology or raw material? “Our goal is to achieve the highest standard

quality in large scale production using

different vegetable oils!”

BRASIL ECODIESEL S.A. | Brazilian Diesel Market

Brazilian Diesel Market (‘000,000 m³)

Source: National Agency for Petroleum, Natural Gas and Biofuels – ANP.(*) 2009 Forecast

Diesel is the main Brazilian fuel, 42% of all oil derived

fuels and more than 50% of transportation fuels.

Domestic market extremely significant, favoring the development and consolidation

of the sector.


2005 – 2007

Blend: up to 2%

1st Sem/08

Blend: min. 2%

Jul/08 – Jun/09

Blend: min. 3%

Jul/09 – Dec/09

Blend: min. 4%

2010 on

Blend: min. 5%

Biodiesel Law: Mandatory use to increase production

Source: ANP.(1) Forecast considers B5 in 2010.

Current blend percentages are only the

initial stimulus.

Higher blends are already feasible in

engines.

Production growth shows the

success of the program

| Brazilian Diesel Market – National Biodiesel Program



The Company

Results – 1Q10

Perspectives

Strategy


Brasil Ecodiesel on the map

| The Company- Brasil Ecodiesel on the map

Biodiesel Plants

Farms

BRASIL ECODIESEL S.A. | The Company – Board of Administration and Officers

All common shares with equal voting rights

Tag-Along of 100%

None of the board members are executives

Active Fiscal Council

Board Members

Name / Position Age

Carlos Antonio Rocca

Chairman and Independent Board Member69

Wagner Pinheiro de Oliveira

Independent Board Member47

Mauro Fernando Maria Arruda

Board Member 63

Silvio Tini de Araújo

Board Member63

Jose Ferraz Ferreira Filho

Board Member63

Marco Antonio Moura de Castro

Board Member56

Mauro A. Cerchiari

Chief Executive Officer (CEO)56

Charles Mann de Toledo

Investors Relations and New Businesses Officer51

Expedito Parente Júnior

Industrial Officer29

Main Executives

Name / Position Age

Eduardo de Come

Chief Financial Officer (CFO)44

Guilherme Augusto Raposo

Operations Officer43

Corporate Governance

Joel Mendes Rennó

Vice-Chairman72

BRASIL ECODIESEL S.A. | The Company - Restructuring

Recent Past - Restructuring

BRASIL ECODIESEL S.A. | The Company – Fulfillment of Contracts Evolution

Fulfillment of Contracts with Petrobras



The Company

Results – 1Q10

Perspectives

Strategy

BRASIL ECODIESEL S.A. | The Company – Strategic Direction for the next 5 years

EQUITIES

Search for alternative raw materials

Viability studies of Jatropha Curcasplantations in BA, MS and other locations.

Search partners for the development of R&D in the agricultural area

Search for raw material supply partnerships for the short and medium terms.

Corporate Restructuring – Headquarters and organizational

Redefinition of the Corporate Image

Creation of the Company’s industrial R&D

Monitoring M&A opportunities in the market

Reallocation of Floriano and Crateús idle assets and the crushing units equipments from Porto Nacional

Activate Iraquara and São Luiz Gonzaga’s crushing units.

Project to improve industrial efficiency

Social Fuel Stamp (Selo Combustível Social) -work with more advanced forms of Family Farming organizations

Search for long term financing

Selling our farms in Piauí, Ceará and Minas Geraisstates

Selling of Crateús crushing unit

SERVICESFIXED INCOME

Strategic Direction

STRATEGICLong Term

OPERATIONALShort Term

DIVESTMENTIdle Assets

“Higher demand for biodiesel , more control of vegetable oil supply, and less interference of the

government.”

Biodiesel Scenario:



The Company

Results – 1Q10

Perspectives

Strategy

BRASIL ECODIESEL S.A. | Results – 2009 Highlights

Net Revenue of R$149.4 million and Adjusted Net Revenue(*) of R$138.5 million in 1Q10

Net Income of R$14.3 million with EBITDA of R$23.4 million

Adjusted Net Income(*) of R$7.5 million and Adjusted EBITDA(*) of R$12.65 million in 1Q10

EBITDA Margin of 16.9% and Adjusted EBITDA Margin(*) of 9.1% in 1Q10

Reduction in indebtedness from R$66.5 million (4Q09) to R$65.8 million (1Q10);

Increase of 29.7% in net cash, from R$37.3 million (4Q09) to R$48.2 million (1Q10);

Announcement of the Company’s strategic positioning for the next 5 years


(*) Excludes non-recurring revenue in the amount of R$10.8 million, resulting from accumulated ICMS tax benefits, pursuant to CPC07 (see Explanatory Note 22 to the Financial Statements).

| Results– 4Q09 Results

BRASIL ECODIESEL S.A. | Results – Revenue, Costs and Expenses

(*) Excludes non-recurring revenue in the amount of R$10.8 million, resulting from accumulated ICMS tax benefits, pursuant to CPC07 (see Explanatory Note 22 to the Financial Statements).

BRASIL ECODIESEL S.A. | Results – Debt position

BRASIL ECODIESEL S.A. | Results – Net Profit

(a) Excludes other expenses not directly related to operating, non-recurring expenses and Strategic Rerouting Adjustments in theamount of R$93.15 million (see Explanatory Note 24 to the 4Q09 Financial Statements).(b) Excludes non-recurring revenue in the amount of R$10.8 million, resulting from accumulated ICMS tax benefits, pursuant to CPC07 (see Explanatory Note 22 to the Financial Statements).

BRASIL ECODIESEL S.A. | Results – EBITDA

(a) Excludes other expenses not directly related to operating, non-recurring expenses and Strategic Rerouting Adjustments in theamount of R$93.15 million (see Explanatory Note 24 to the 4Q09 Financial Statements).(b) Excludes non-recurring revenue in the amount of R$10.8 million, resulting from accumulated ICMS tax benefits, pursuant to CPC07 (see Explanatory Note 22 to the Financial Statements).

BRASIL ECODIESEL S.A. | Results – Prices and Financial Volume Evolution

Price EvolutionIbovespa x Ecod3

(100 basis in Jan/09)

Financial Volume Ecod3

(in million reais)

12 M Average – R$38million

BRASIL ECODIESEL S.A. | Results – Market Cap and Shareholding Structure

Number of Shares:

725,248,727

Shareholding Structure (%)(03/31/2010)

Market Cap:(05/10/2010)

R$ 761,511,163.35

Number of shareholders: 26,385


P R E S E N T

• IBOVESPA

• IBRX50

• IBX

• IGCX

• ITAG

• SMLL

• IVBX2

• ETF – BlackRock (New York)

P E R S P E C T I V E S

• Carbon Efficient Index

| The Company – Index and ETF

Participation in the main index/ETF:



The Company

Results – 1Q10

Perspectives

Strategy

BRASIL ECODIESEL S.A. | Perspectives for the Brazilian Biodiesel Sector

Perspectives

Metropolitan B20

B20 until 2015

Diesel cars

International Biodiesel Market

UBRABIOinitiative

100% increase in the current biodiesel demand (2.5 billion liters)

Proposition already approved by a Senate

Commission

Aggressive goals in Europe are a future

opportunity for Brazilian producers


NBomePhone: 55 21 2546-5031

[email protected]

www.brasilecodiesel.com.br

Investor Relations


Earnings release 1 q10 presentation

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Transcript of Earnings release 1 q10 presentation