2. Title Page
Section I Introduction 2
Section II Market Overview 9
Section III Group Overview 33
Section IV Management, Strategy and Governance 46
Section V Operational Review 65
Section VI Financial Review 78
Section VII Conclusion 83
1
4. Introduction
Brasil Ecodiesel is the leading and sole fully-dedicated producer of biodiesel in Brazil, and it believes to be the largest listed
Biodiesel company in the world in terms of production capacity;
Established in July 2003, Brasil Ecodiesel began its operational activities in August 2005, throughout its Floriano Plant. The first
two years after the incorporation were dedicated to the establishment of partnerships with agricultural labor unions and government
entities, definition and development of technology and research of raw material options;
The Company held its IPO and became a publicly-held company in November 2006. It is listed on the Sao Paulo Stock Exchange -
Bovespa and has a market capitalization of around US$ 450 million as of December 2007. The major shareholders is/are:
Shareholders Ações %
Eco Green Solutions LLC 43,679,955 34.58%
Zartman Services LLC 24,975,508 19.77%
Nelson José Côrtes da Silveira 12,315,826 9.75%
Wellington Managment Company 8,646,180 6.85%
Others 36,693,272 29.05%
Total 126,310,741 100,0%
* On November 30th, 2007
3
5. Introduction
According to Brazilian Biodiesel Law (Law 11.097/2005), all the mineral diesel sold in the country from 2008 on will require a mandatory blend of 2% of
biodiesel (“B2”), percentage that will increase to 5% in 2013. The market for biodiesel in Brazil is expected to increase to 1.0 million m3 in 2008 and 2.4
million m3 per year beginning in 2013. However, the government already announced that the 5% blend will likely be brought forward to 2010.
To stimulate private investment in the biodiesel sector, Brazilian Government started the purchases of biodiesel to Petrobras in 2006 and 2007, the state-
owned oil company (rated Baa1 by Moody’s and BBB- by S&P), through public auctions organized by ANP (Oil National Council – “Agência Nacional do
Petróleo”).
On the auctions organized by ANP for biodiesel delivery scheduled for 1H08, Brasil Ecodiesel sold 161,000 m3 of biodiesel. Another auction, whose volumes
are also scheduled to be delivered in the same period, was done, this time, by Petrobras to build up inventories, under which Brasil Ecodiesel sold 35,900 m3;
The company maintains 6 operational plants in the cities of Floriano (Piauí), Crateús (Ceará), Iraquara (Bahia), Porto Nacional (Tocantins), Rosário do Sul
(Rio Grande do Sul) and Itaqui (Maranhão), with a total capacity of 638,600 m3 /year, currently operating at around 57% of its total capacity
Considering the vertical integration strategy, the company also counts with oil extraction facilities in Iraquara (Bahia), Crateús (Ceará) which is currently
unable to operate due to an environmental injunction, São Luis Gonzaga (Rio Grande do Sul) and Porto Nacional (Tocantins), which is under construction and
is expected to start its operations by August 2008;
Brasil Ecodiesel accesses the necessary volumes of vegetable oil to its activities through a strategy of diversification, which includes direct purchases from
vegetable oil producers, plantations in its own lands (63,349.4 hectares as of September 30) and partnerships with family farmers and commercial farmers;
As of 9M07, Brasil Ecodiesel sold 114,674 m3, and had a market share of 49% in the first 9 months of 2007, with net revenues of BRL 201.4 mm;
Brasil Ecodiesel had 1,614 employees as of November 2007
* subject to market evolution.
4
6. Competitive Characteristics
Sole Fully-Dedicated and Leading Brazilian biodiesel producer
• Brasil Ecodiesel is the sole fully-dedicated and leading biodiesel producer in Brazil, responsible for 53% of biodiesel produced in Brazil in 2007, according to ANP
• As being the market leader, maintaining a strong relationship with customers, suppliers, including the federal, state and local governments, the company is placed in a
favorable position to remain a leading player after the anticipated end of the auction system
Government supportive of biodiesel industry
• Brazil Government launched programs to increase sustainable production and mandatory use of biodiesel, according to the Law 11.097/05
• It has enacted laws and regulations that impose a long-term requirement to use biodiesel, and granted tax benefits favouring the sustainable production of oilseeds,
which are essential raw materials in the production of biodiesel
Innovative raw material origination chain
• Brasil Ecodiesel has introduced several measures like producing vegetable oils for industrial consumption only (like castor and jatropha), diversification into more
efficient sources (like sunflower seeds) and the increased use of cheaper vegetable oils. Such strategy will determine the company’s increasing profitability
Geographic and production flexibility
Flexible technology that is able to produce biodiesel from several different raw materials (castor plant, jatropha and sunflower’s vegetal oils) with no increase in cost
and make adjustments to meet varying technical specifications for biodiesel required by international markets
National wide presence of operations allows the company to take advantage of:
Logistic synergies
Integration to a wider array of suppliers and clients
Lower dependency on specific weather conditions and;
Tax incentives in the different states where activities are located
5
7. Competitive Characteristics
Project Management experience
The company succeeded in the development of industrial projects, specifically biodiesel plant construction engineering,
and have demonstrated this by implementing and completing its projects on a timeless basis
Technology and equipment are sourced domestically, enabling Brasil Ecodiesel to meet biodiesel delivery obligations in a
flexible manner and to expand operations in a timely fashion
Developed its own tecnology to build and manage the operations of multifeedstock biodiesel plant
Strong ability to build a biodiesel plant in Brazil within a very competitive capital expenditure per installed capacity
Relationship management
As fuel distributors are the only entities authorized to mix biodiesel with mineral diesel, the company strives to establish
an even stronger relationship with the five main distributors that account for approximately 76.3% of the market
Strong Human and Social development is a priority in the Brazilian biodiesel market adopted by the government and a
fundamental aspect of the company. The company supports and promotes family farming projects, which benefits Brasil
Ecodiesel by providing access to guaranteed supply and good relationships with government and labor unions, in
addition to tax benefits. In November 2005, Brasil Ecodiesel received the “Social Fuel Seal”, a pre-requirement to
participate in some of ANP’s auctions
6
8. Challenges and Mitigating Factors
Challenges Company response / Mitigating Factors
Short and medium term administrative reorganization
Increasing access to cheaper grains and vegetable oils, achieved from family farmers and
EBITDA margins and cash flow commercial farmers
generation Price increase in the domestic market, due to increasing demand, as shown on last December
Petrobras auction
Economies of scales, increasing revenues with by-products
Advantage of first mover and of being the sole fully-dedicated producer with substantial capacity
in order to supply the market
Increased competition Access to raw material is the main barrier of entry
Ability to more than double its capacity with lower levels of CAPEX
Commitment of government to the biodiesel policy, through a new mandatory market
Regulatory changes As the pioneer in the industry, Brasil Ecodiesel helped to form the current sector’s framework and
would be consulted and influence regarding future changes
Diversification of raw material sources, diminishing exposure to price volatility
Exposure to volatile raw material Flexibility of technology in order to diversify vegetable oil types and mitigate risks
prices Increasing portion of grains/ vegetable oils acquired from family and commercial farmers, with
fixed prices
7
9. Challenges and Mitigating Factors
Challenges Company response / Mitigating Factors
Future supply contracts shall be based on automatic price adjustment mechanism linked to
international vegetable oil prices
Exposure to currency fluctuation
Strong export potential to European Union due to its cheap production cost and strategic location
on northeast of Brazil
Potential access to long term credit lines to leverage the company
Increasing financial leverage
Strong cash flow projection supplied by the increasing domestic demand and existing production
capacity
Political Risk Global trend for the use of biodiesel
New regulatory framework
8
11. Biodiesel
What is it?
Biodiesel is a renewable and biodegradable fuel, derived from renewable
sources (vegetable oils and animal fat), such as:
Soybean
Castor plant
Jatropha
Rapeseed
Palm
Sunflower
Animal Fat (pork and beef)
Renewable fuel used in diesel cycle engines, as partial or total substitute
for mineral diesel
It is a methylic or ethylic ester, produced from a chemical reaction
between a vegetable oil (or animal fat) and an alcohol (ethanol or
methanol) in the presence of a catalyst. Such reaction is denominated
transesterification.
10
12. Biodiesel
Attributes of the Product
It is a perfect replacement for Engines do not need to be
mineral diesel adapted
Reduces the emissions of gases Ecologically correct, eligible for
causing the greenhouse effect carbon credits
It is renewable, biodegradable and
has a positive energy balance in Does not harm the
environment
production
BIODIESEL
Cetane number higher than that of High power of ignition and
mineral diesel combustion
Flash point is higher than that of Simplified distribution and
mineral diesel greater safety in transportation
Biodiesel is a premium product compared with mineral diesel
11
13. World Biodiesel Market Overview
Global Context
Increasing
Global Energy
Economic demand
Growth
Climate
High Changes
energy
prices
BIODIESEL:
Pollution
Security of energy supply Reduction
Environment
Refining Social Development
capacity
on the
limit Oil
reserves
on the
Geopolitical limit
instability High
of oil dependence
producer of fossil
countries energy
Many countries and regions adopting specific laws to introduce biofuels in the energy matrix
Europe and USA are today the main markets
12
14. Global Trends
Strong growth in the demand and production of biofuels:
Security in supply, lack of dependency of regions with geopolitical problems and high prices trends;
Concern about global warming, need to replace fossil fuels.
World Production of Biodiesel (1000 MT)
18000
16000
14000 3080
12000 720
2200
10000
530
8000
100
450
6000 61,65
852,3 1400 10000
4000
2000 5 4890 4684
30
1065
0
2002A 2006A 2007E 2010E
Source: Oleoline, EBB, NBB Europe USA Brazil Other
Biodiesel market has great growth potential and the access to vegetable oils will be a key success factor
Reduction in the production in Asia, mainly due to the increasing use of palm oil for human consumption and poor characteristic of biodiesel produced from
palm oil only
According to the World Economic Outlook, USA and Europe are reducing biofuels’ import taxes
13
15. World Biodiesel Market Overview
Europe:
Directive 30/2003 established a voluntary goal to the use of 2% of biofuels in 2005, that was not attained;
This goal was raised to 5.75% in 2010 and the European Council recommended adopting a mandatory goal of 10% in 2020;
Several countries have already established mandatory goals, following the Brazilian example, which will change the price
formation dynamics, making biodiesel prices independent from diesel prices;
France: 2% since
Austria: 2% in October 2005. Slovenia: 2% in 2006;
January 2005.
Check Republic: 2% in Germany: 2%, increasing to 5%
Holland: 2% in 2007;
September 2007; in 2007;
Sweden, 2 to 5% , depending Spain: 3,4% in 2009,
UK: 2% in April 2008;
on the country’s region, in 2007; 5,75% in 2010.
European production shall not meet the local demand: due to limitations of arable ground and rapeseed production. The
European Commissioner for Agriculture, Marian Fischer Boel estimated in the Conference by the European Grain and Oilseed
Convention, on May 4th, 2007, that 10 to 30% of biofuels consumed in Europe in 2020 shall come from imports.
14
16. World Biodiesel Market Overview
USA:
• Job Creation Act, 2004: tax incentives to biodiesel producers of US$ 1,00 per gallon produced, as well as credit to distributors
and refineries of US$ 0,01 per gallon for each percentage point of biodiesel blended to the mineral diesel.
• Energy Policy Act 2005: credit of US$ 0,10 per gallon of biodiesel produced by small producers, up to the limit of 15 million
gallons.
• “New Energy Bill”, 2007: The energy bill adopted by the Senate increases the Renewable Fuels Standard (RFS), which sets
annual requirements for the amount of renewable fuels produced and used in motor vehicles. The expanded RFS requires 9
billion gallons of renewable fuels in 2008 and is expected to increase to a 36 billion gallon requirement by 2022.
“Environmental Protection Agency”:
• Sulfur is one of the most polluting elements derived from mineral diesel;
• Mineral diesel consumed in US should reduce sulfur from 300 - 500 ppm (parts per million) to at most 15 ppm. This is called
ULSD (Ultra Low Sulfur Diesel), which is mandatory to all road vehicles since June 2006. Reduction of sulfur drastically
decreases the fuel lubricity, which is essential for engines efficiency. Biodiesel, even in a percentage lower than 1%, solves the
problem by increasing lubricity up to as much as 65%;
• US Navy: According to its memorandum US Navy should use blends of B20 in the regions where there are available supply. US
Army and Navy are the largest diesel consumers of US.
15
17. World Biodiesel Market Overview
Historic substantial growth of biodiesel production:
European Production US Production
250
1437.4
1600 250
1400
305.1
935.9 200
Volume (million gallons)
Volume (million gallons)
1200
131.4
1000
218.4 150
568.3 184.3
800
116.4
313.1 421.2
600 144.6 100 75
67.7
25.9 94.1
782
400 11.5 80.2 102.3
61.7 104.9 491 50 25
107.6 15 20
200 304
210
132
0 0
2002 2003 2004 2005 2006 2002 2003 2004 2005 2006
Germany France Italy Other
Source: European Biodiesel Board
Source: National Biodiesel Board
16
18. Brazilian Biodiesel Market Overview
REGULATING MILESTONE: BIODIESEL LAW
Law 11.097/05: Establishes minimum percentages of
mixing biodiesel with diesel and the monitoring of the insertion
of the new fuel in the market.
onwards
Authorized Mandatory Mandatory
Potential Market: Firm Market: Firm Market:
840 million liters 1 billion liters 2,4 billion liters
17
19. Brazilian Biodiesel Market Overview
Regulating Overview
July 2, 2003 - Brazilian government issued a decree instituting a working group to assess the feasibility of the use of biodiesel as an
alternative energy source and, on December 23, 2003, the Brazilian government created by decree an inter-ministerial executive
commission in charge of the implementation of actions encouraging the production and use of biodiesel in Brazil;
December 23, 2003 - The Brazilian government issued a decree that create the executive inter-ministry comitee to implant the action
aiming the production and commercialization of biodiesel.
November 24, 2004 - ANP issued ANP Resolutions No. 41 and No. 42, which establish, respectively, the requirement of the ANP’s
authorization for biodiesel production and the technical specifications for biodiesel production and sale;
December 6, 2004 - Brazilian government enacted Provisional Measure No. 227, converted into Law No. 11,116 of May 18, 2005, as well
as Decrees No. 5,297 and No. 5,298. Subsequently, the Brazilian Secretariat of the Federal Internal Revenue Service issued Normative
Instructions No. 516 and No. 526, on February 22, 2005 and March 15, 2005, respectively. These provisions regulate the special
registration of a biodiesel producer or importer with the Brazilian Secretariat of the Federal Internal Revenue Service, the coefficients for the
reduction of contribution rates for the PIS/PASEP and COFINS payable for the production and sale of biodiesel, as well as an exemption
from the IPI contribution payable on biodiesel;
January 13, 2005 - Brazilian government enacted the Brazilian Biodiesel Law, which introduced biodiesel into the Brazilian energy matrix
and broadened the ANP’s scope of action, which was expanded to include the regulation of the production and marketing activities of
biofuels. Moreover, this law set minimum compulsory percentages for the mixing of biodiesel with mineral diesel sold to final consumers,
determining that the minimum additional percentage must be 2.0% from 2008 to 2012, and 5.0% from 2013;
January 13, 2005 - The Brazilian Government enacted the Brazilian Biodiesel Law, which introduced biodiesel in the Brazilian energy
matrix and broadened the ANP’s scope of power to include the regulation of the production and marketing activities of biofuels. Moreover,
this law set minimum compulsory percentages for the mixing of biodiesel with mineral diesel sold to end consumers, requiring a minimum
additional percentage of 2.0% from 2008 to 2012 and 5.0% from 2013;
May 18, 2005 - the Brazilian Government enacted the Law 11.116 regarding the Special Register on the Secretariat of Internal Revenue of
the Ministry of Finance of biodiesel producer or importer and regarding PIS/PASEP and COFINS due such product revenue;
18
20. Brazilian Biodiesel Market Overview
Regulating Overview
May 20, 2005 - the Brazilian Government issued a Decree which amends the item 1, article 2 of law 11.097, regarding the introduction of
biodiesel in the Brazilian Energetic Matrix and Provisions;
June 06, 2005 - the Brazilian Government issued a decree which reduced the portion of PIS/PASEP and COFINS importion and
commercialization of biodiesel;
July 5, 2005, and on September 30, 2005, the MDA issued Normative Instructions No. 01 and No. 02, respectively, which regulate the
criteria and procedures related to the granting of the Social Fuel Seal to companies and projects;
September 23, 2005 - CNPE, based on the powers granted it by the Brazilian Biodiesel Law, required the mandatory purchase of biodiesel
from producers holding the Social Fuels Seal by producers and importers of diesel;
October 3, 2005, the MME issued Edict No. 483, which established the guidelines for the regulation of biodiesel public auctions;
November 4, 2005 - ANP subsequently issued Resolution No. 31, which regulates procedures and participation requirements for such
auctions. Five auctions were done from November 2005 to February 2007, to supply the market in 2006 and 2007;
July 17, 2006 – ANP issued resolution N.º 15, which established the technical specifications to mineral diesel and B2 and also defines the
obligations of the quality control over the products;
October 3, 2007 – MME issued Resolution No. 5, defining that new auctions would be done to supply the market in the first half of 2008,
when 2% mandatory blend should begin.
October 4, 2007 - MME issued Edict No. 284, which regulates procedures and participation requirements for such auctions;
December 11, 2007 - ANP issued Resolution No. 338, indicating that Petrobras and Refap should buy another 100,000 m3 to build up
inventories
19
21. Brazilian Biodiesel Market Overview
Regulating Overview
March 7, 2007 - the ANP issued Resolution No. 9 which sets forth the technical regulation on quality control of liquid fuel used in vehicles,
including biodiesel, among others, purchased by retail stores for commercialization to end consumers;
October 4, 2007 - the MME issued the Ruling No. 284 establishing the specific guidelines of the public auctions which shall be held by the
ANP related to the buy of biodiesel;
October 30, 2007 - the ANP issued Resolution No. 33, which determined the guidelines for the regulation of biodiesel auctions to be held
by the ANP, in connection with biodiesel to be sold in 2008, pursuant to the CNPE’s Resolution No. 5, dated October 3, 2007. This
Resolution also sets forth that the ANP may hold additional auctions with the termination of purchase and sale agreements executed in
previous biodiesel auctions;
December 11, 2007 - the ANP issued Resolution No. 44, which determined that the diesel producers that acquired biodiesel under
biodiesel auctions in order to comply with the requirement to add 2% of biodiesel in all diesel supplied to end consumers must supply such
biodiesel to all distributors notwithstanding such distributors having acquired diesel from other diesel suppliers; and
December 11, 2007 - the ANP issued Resolution No. 45, which determined that Petrobras and REFAP must form a stock of biodiesel in the
amount of 100,000 m3 (and acquire the corresponding amount of biodiesel under public purchase proceedings) by February 29, 2008 in
order to guarantee the continuity of supply of biodiesel to such contributors and other companies selling diesel to end consumers, which
must comply with the obligations to add a minimum 2% of biodiesel, in all diesel sold to end consumers, pursuant to the Brazilian Biodiesel
Law.
20
22. Market Regulation
ANP (National Agency for Petroleum, Natural Gas and Biofuels)
Governmental agency created in August 1997,
Responsible for regulating, supervising and enhancing the petroleum, natural gas and biofuels industry in Brazil
through the creation of competitive market conditions, bringing lower prices and better service to final consumers
The production, import, export, storage, distribution and sales of biodiesel as of any type of fuel in Brazil are
subject to the ANP’s regulation and authorization
Government Incentive Policy and favourable regulatory framework
Capacity authorization:
Producers need to be authorized by ANP, by the Brazilian Secretariat of the Federal Internal Revenue Service
work and also by states environmental offices;
Market mandatory demand regulated by auctions until June, 2008: mechanism for 2H08 unknown yet and free market
on the medium term (Negotiations between producers and distributors) is expected;
Competition by price under auctions mechanism, without any price regulation.
21
25. Potential Market Size
Brazilian Biodiesel market shall be higher than mandatory volumes, due to the early achievements of
the Government goals and additional voluntary use
2005 - 2007 2008 - 2009 2010 onwards
2% Authorized 2% Mandatory 5% Mandatory *
?
1,600
1,200 2,400
730
thousand m3
3,000
2,500 400
2,000
1,500
500 800 870
1,000
500 68.5
0
2006 2007 2008 2009 2010
Voluntary Market Mandatory Market** With voluntary market**
* Considering advance of B5
** Mandatory – MME Estimates/ Voluntary – Brasil Ecodiesel Estimates 24
26. Potential Market Size
Brazilian Biodiesel market will be higher than mandatory volumes
Besides the mandatory market there is a voluntary one made up of special consumers such as the fleets of urban buses, road
transport, railroads, mining equipment and thermo-electrical plants, all of which may use higher percentages of biodiesel:
• Vale, the largest consumer of diesel in Brazil, is already using B20 in its railroads;
• Public transportation companies are already using B5 in Rio, São Paulo and Belo Horizonte, among other cities;
• Agricultural fleets, which consume about 15% of the diesel in the country, are a potential market considering high diesel prices in some
regions of the country due to the distance from refineries;
• Isolated thermo-electrical power plants
Source: Brasil Ecodiesel
25
27. Auctions
The ANP Auctions (FOB prices)
Amount Brasil Ecodiesel
Auction % BRL/m3 Delivery Dates
Auctioned m3 Part
1st Auction 26,800 m3 until 12/31/2006
70,000 38,000 54.3% 1,909
11/23/2005 11,200 m3 until 06/30/2007
2nd Auction
170,000 21,780 12.8% 1,905 Until 06/30/2007
03/30/2006
3rd Auction Between 01/01/2007 and Voluntary
50,000 40,000 80.0% 1,730
07/11/2006 12/31/2007 Volumes
4th Auction Between 01/01/2007 and
550,000 388,220 70.6% 1,730
07/12/2006 12/31/2007
5th Auction
45,000 8,000 17.8% 1,803 Until December 2007
02/04/2007
6th Auction
304,000 141,000 46.4% 1,845 Until 06/30/2008
11/13/2007
7th Auction Mandatory
76,000 20,000 26.3% 1,873 Until 06/30/2008
11/14/2007
TOTAL 1,265,000 657,000 51.9%
The Petrobras and Refap Auctions (CIF prices)
Amount Brasil Ecodiesel CIF PRICE Delivery
Auction %
Auctioned m 3
(m )
3
BRL/ m 3
Dates
Petrobras e Refap Mandatory
Until
100,000 35,900 35.90% 2,290.38
12/20 and 12/21/2007 02/28/2008
The average logistics cost of this auction is R$ 70 / m3, which would correspond to an average FOB price of around R$ 2,220 / m3.
26
28. Overview of Biodiesel’s Auctions
Summary of the Biodiesel Auctions
450000 2500
400000
350000 2000
Production in m3 300000
1500 R$ / m3
250000
200000
1000
150000
100000 500
50000
0 0
1st 2nd 3rd 4th 5th 6th 7th 8th and 9th
Brasil Ecodiesel m3 Others m3 Brasil Ecodiesel Average Price
Biodiesel Production
120 80.00%
70.00%
100
60.00%
80
50.00%
Production in ‘000 m3 60 40.00%
Market share
30.00%
40
20.00%
20
10.00%
0 0.00%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Brasil Ecodiesel Production Total Production Market Share
27
29. Competitive Landscape
Biodiesel Production divided by producer – m3
Production (m3) 2005 2006 2007
Brasil Ecodiesel 156 21.2% 34,768 50.7% 211,980 53.1%
Granol 0.0% 30,543 44.6% 67,946 17.0%
Biocapital - 0.0% - 0.0% 30,892 7.7%
Caramuru 0.0% 0.0% 42,692 10.7%
Barrálcool 0.0% 0.0% 12,590 3.2%
Bsbios 0.0% 0.0% 13,690 3.4%
Others 580 78.8% 3,237 4.7% 19,773 4.9%
Total 736 100.0% 68,548 100.0% 399,563 100.0%
Biodiesel Production divided by producer in 2007 – m3
Others, 4.9%
Bsbios, 3.4%
Barrálcool, 3.2%
Caramuru, 10.7%
TOTAL
Biocapital, 7.7% 399,243 m3 Brasil Ecodiesel,
53.1%
Source: ANP Granol, 17.0%
28
30. Competitive Landscape for 2008
6th (11/13/2007) and 7th (11/14/2007) ANP’s Auctions
Others, 11.32%
Competition scenario for 1H08 defined by the
auctions;
Fiagril, 6.05% Small companies that had never produced
biodiesel before, and which are not fully-dedicated
Brasil Ecodiesel, producers, could participate of the auctions,
42.37%
increasing the competition and pressuring the
Caramuru, 10.00% prices down;
380,000m3
Trend that companies that don’t deliver the
biodiesel should be banned from possible upcoming
auctions;
Biocapital, 13.16% Potential new players to enter the market only after
July 2008.
Granol, 17.11%
29
31. Competitive Landscape for 2008
1st Refap (12/20/2007) and Petrobras (12/21/2007)Auctions
Volumes sold by each producer not available yet. Competition restricted to the major players
Petrobras perception on potential risk of lack of
supply due to results of the 6th and 7th auctions
30
32. Competitive Landscape
General
Potential new players:
PETROBRAS COMMODITY/TRADING VEGETABLE PRODUCERS
Advantages Disadvantages Advantages Disadvantages
Cultural bias towards Domain of the vegetable oil’s Depends on a sub-product of its
Diesel production monopoly; engineering fossil fuel market; main activity;
development; Strong presence in the Small access to tax benefits;
Strong presence in Difficulty to promote its grains’ European biodiesel market;
distribution; Current logistics oriented to
origination chains, due to its Investment capacity. grain’s exports.
needs of capillarity and
Investment capacity.
dispersion;
Need to develop a new social INTERNATIONAL GROUPS SEEKING EXPORTS
program;
Advantages Disadvantages
FUEL DISTRIBUTORS Access to the international Small access to tax benefits;
biodiesel market; Current internal logistics oriented
Advantages Disadvantages
Investment capacity. to grain’s exports.
Biodiesel’s total market
incipient in relation to its main
activity;
Detachment of the program’s OTHER INDEPENDENT PRODUCERS
Distribution and social objectives;
commercialization structure; Dependant of other
Advantages Disadvantages
Investment capacity. companies for supplies’ Dependant of other companies
origination; Eventual access to lower costs’ for supplies’ origination;
Limited volume of lower costs’ supplies; Limited volume of lower costs’
supplies; Flexibility to create independent supplies;
Difficulties to structure its own strategies. Difficulties to structure its own
supply chain. supply chain.
31
33. Other Producers
USA Asia Europe
Imperium Renewables, Inc. was founded as Gushan is a leading producer of biodiesel BIOPETROL INDUSTRIES AG is a Swiss
Seattle Biodiesel, LLC in 2004. Saybr and related products in China. It was founded company with subsidiaries in Germany, in the
Contractors, the leading petroleum facility in 2001. Currently, it has an aggregate annual Netherlands and in Switzerland. Its business is
contractor in the Northwest, entered into a joint production capacity of 190,000 tons of the manufacture and distribution of biodiesel to
venture to construct the first commercial biodiesel. As a pioneer of the biodiesel DIN EN 14214 and of pharmaceutical grade
implementation of this biodiesel refinery manufacturing sector in the country, it intends glycerol from vegetable oil. Biopetrol
technology. By early 2005, the refinery opened to promote biodiesel as one of the best registered € 155.44 mm sales of which 95%
for business. Imperium Renewables, Inc. solutions for China’s energy needs by belongs to biodiesel. In 9M07 Biopetrol sold
operates the Seattle refinery as a wholly owned producing quality and environmentally friendly 199,817 tonnes of biodiesel (114,320 tonnes in
subsidiary with a yearly capacity of 5 million biodiesel at competitive cost. 9M06).
gallons per year. In August, 2007 it officially
opened the USA’s largest Biodiesel refinery, Oceania D1 Oils plc is a UK-based global producer of
capable of producing up to 100 million gallons biodiesel with also commodity refining and
per year, in Grays Harbor Washington. The Natural Fuel Limited is a renewable energy trading activities. The company has
company is in site developments that it believe company, headquartered in Australia. Natural established a global planting joint venture with
will deliver another 300 million gallons per year of Fuel was incorporated in October 2003 and BP in order to develop its biodiesel production.
capacity by the end of 2009. became a public unlisted company in June D1 has obtained the right to offtake a total
2004. On 21 December 2006 Natural Fuel area of 198,000 hectares of jatropha
Limited listed on the Australian Securities worldwide. Turnover as of Jun 30th 2007
Nova Biosource Fuels, Inc. is an energy Exchange (ASX: NFL ). Its biodiesel plant in
company that synthesizes and markets ASTM reached £4.1m corresponding to 8,588 tonnes.
Darwin (a 50/50 joint venture with Babcock
standard biodisel and related co-products. Nova and Brown Environmental Investments) is
is focused on the construction and operation of Australia’s largest. A wholly owned biodiesel
three biodiesel refineries with total production
capacity 180 to 220 million gallons of fuel on an
production facility is in the final stages South America
of construction on Jurong Island, In tests’ period, Bertin’s Biodiesel plant will
annual basis. Nova's business strategy through Singapore. Once completed, it will be the
the year 2010 includes building up to seven represent, according to Abiodiesel
largest biodiesel production facility in the (Associação Brasileira das Indústrias de
biodiesel refineries, either wholly owned or in world.
connection with joint ventures, each with annual Biodiesel), 14% of the Brazilian production,
production capacity ranging from 20 to 60 million and will be the biggest installed plant in the
gallons world to make biodiesel from animal fat. The
plant will have a year capacity of 110 millions
Canada of litters of biodiesel. Despite the initial use of
fat as supply, the plant also has conditions to
Plant Name City Province Feedstock Capacity operate with vegetable oils.
Milligan BioTech Foam Lake SK Canola Oil 1,000,000 L
BIOX Hamilton ON Tallow 66,000,000 L
Rothsay Montreal QC Animal Fats/Yellow Grease 30,000,000 L
1 Gallon = 3.79 litters
North West Bio-Energy Unity SK Wheat 25,000,000 L
32
35. Company History
July 2003 The Company entered into an agreement with the state of Piauí for the installation of a castor plant oil
production center based on family farming;
November 2003 The Company began implementing its first family production center, the Santa Clara Agricultural Center, which
recorded its first harvest between May and August 2004;
April 2004 Ecotrans, a subsidiary of the company, began its logistics activities;
November 2004 Acquisition of Crateús Algodoeira S.A. (Crateús Algodoeira), located in the state of Ceará;
August 2005 Inauguration of the Floriano plant, located in the state of Piauí;
November 2005 Brasil Ecodiesel participated in the first public biodiesel auction, winning bids to supply 38,000 m3
of biodiesel, 54.8% of the total amount;
March 2006 The Company participated in the second public biodiesel auction, winning bids to supply 21,780 m3,
12.8% of the total amount;
May 2006 The Company began construction of its Crateús plant in the state of Ceará;
July 2006 The Company began building its Iraquara plant in the state of Bahia;
July 2006 Brasil Ecodiesel participated in the third and fourth public biodiesel auctions in which it won bids to
supply 428,220 m3, 71.4% of the total amount;
October 2006 Inauguration of the Crateús plant;
November 2006 Brasil Ecodiesel held its IPO, becoming a publicly-held company;
November 2006 inauguration of the Iraquara plant;
December 2006 Laying of the foundation stone for the Dourado plant, in Mato Grosso do Sul;
February 2007 The Company participated in the fifth public biodiesel auction, winning bids to supply 8.000 m3
17.8% of the total amount;
May 2007 Inauguration of the Porto Nacional plant, located in Tocantins state;
July 2007 Inauguration of the Rosário do Sul plant, in Rio Grande do Sul and Itaquí in Maranhão
November 2007 Brasil Ecodiesel participated in the sixth and seventh public biodiesel auctions in which it won bids to
supply 161,000 m3, 42.4% of the total amount;
December 2007 Brasil Ecodiesel participated in Petrobras and Refap auctions in which it won bids to supply 35,900 m3,
35.9% of the total amount;
34
36. Brief History
Deliveries of the1st Deliveries of 2nd,
Inauguration 1st auction of auction. 3rd and 4th
Start of the purchase of
of the Santa 2nd, 3rd and 4th auctions.
Activities biodiesel (Nov/05)
Clara Center auctions (Mar/06 Start of operation of
and Jul/06) new plants (3).
2003 2004 2005 2006 2007
Start of the Operations and Auctions of
Formation of Productive Base Expansion
Biodiesel
Definition of the Inauguration of the plant of Demand assured
business plan Floriano (2005) Corporate
Agreements and IPO (Nov/06) structuring
contracts with Start of operations of plants of Consolidation of
unions of farm Crateús and Iraquara (2006) market-share from
laborers and 2008 onwards
producers of raw Construction of new plants - Porto
materials Nacional, Rosário do Sul and Itaqui
(in operation in Jul/07)
35
37. Group Structure
(as of 11/30/2007)
Eco Green Nelson José Wellington
Zartman
Solutions Cortês da Managment Others
Services LLC
LLC*** Silveira Company
34.58% 9.75% 19.77% 6.85% 29.05%*
99.0%** 99.5% 99.0%** 99.9%** 99.0%**
Rede de Compras Ecotrans Transporte,
Intermediação de
Cratéus Algodoeira Serviços e Locação de Other Agriculture
Negócios, Comércio de Buriti Agrícola Ltda.
Produtos e Insumos S.A. Equipamento e companies
Agrícolas Ltda. Máquinas Ltda.
* Non of the shareholders own over 5.0% of the Company’s Shares
** The remaining shares are owned by Nelson José Cortes da Silveira
*** In Sep 2007, Eco Green reduced its participations in the shareholders’ agreement and no longer indicates members to the Board
36
38. Group Structure
Subsidiaries Description
Brasil Ecodiesel divides its operational activities, assigning different roles to its Company and to each of its subsidiaries, as
follows:
Brasil Ecodiesel – It is the holding company of Brasil Ecodiesel Group and operates all the industrial plants.
Rede de Compras – Rede de Compras purchases raw materials for biodiesel production, markets the by-products of its
oilseed crushing process and sells basic tools, seed, fertilizer and other products to family farmers.
Crateús Algodoeira – Crateús Algodoeira leases a crushing unit it owns to Brasil Ecodiesel. This crushing unit is integrated
into the transesterification plant in the same city.
Buriti – Buriti Agrícola S.A is an Agro industry with the harvest, selling and exports of agricultural products and its by
products. Purchase and sale of 3rd parties agricultural production. Its mains activity today is the administration of Santa
Clara Agricultural Center.
Ecotrans – Operating and maintenance of the Company ’s road transportation fleet and agricultural machinery are
conducted through Ecotrans. In addition, Ecotrans conducts integrated logistics activities, including the shipment of raw-
materials and by-products.
Other agricultural companies - Agro industries with the harvest, selling and exports of agricultural products and its by
products. Purchase and sale of 3rd parties agricultural production: Bora Bora Agro-industrial Ltda, Bonanza Agro-
industrial Ltda, Capão da Canoa Agro-industrial Ltda, Erebango Agro-industrial Ltda, Gustávia Agro-industrial Ltda, Jaicó
Agrícola Ltda, Mocuri Agrícola Ltda, Montana Agro-industrial Ltda, Piatã Agrícola Ltda.
37
39. Operational Structure
Major biodiesel producer in Brazil
and the only one with a
nationwide presence
Biodiesel Plants
6 in operation
1 at planning stage
Oil Extraction Units
3 in operation
1 in construction
1 at planning stage
3 Laboratories of Certification
Farms: 63,000 hectares of its own or leased
Oil and bean Storage Units
38
40. Operational Structure
Production
Currently, Brasil Ecodiesel maintains 6 vegetable oil processing units, in the following locations
Start of Start of Production capacity Biodiesel sales Expanded Capacity
Plants
Construction Operations thousands of m3/year (thousands of m3) - 9M07 (thousands of m3)
Floriano, PI Aug-05 Dec-05 44.6 24.9 89.1
Crateus, CE May-06 Dec-06 118.8 32.6 165.0
Iraquara, BA Jul-06 Dec-06 118.8 42.5 264.0
Porto Nacional, TO Aug-06 Jun-07 118.8 7.1 264.0
Rosario do Sul, RS Sep-06 Aug-07 118.8 3.7 264.0
Itaqui, MA Sep-06 Aug-07 118.8 3.8 264.0
Total 638.6 114.7 1310.1
Aiming at maintaining its market share, the Company approved an expansion plan to put in place according to market development:
• ANP, has already authorized the expansion of Floriano;
• The expansion of Iraquara, Cratéus, Porto Nacional, Rosário do Sul and Itaquí was already requested to ANP;
• The installation of the Dourados – MS plant will take place after the end of the plants’ expansion.
Aiming at increasing its production facilities and producing its own vegetable oil, Brasil Ecodiesel is installing oil extraction plants:
Oil extraction facility at Iraquara (Bahia state), integrated to biodiesel plant, to begin operations in February/ 2008;
Oil extraction facility at São Luiz Gonzaga (Rio Grande do Sul state), which is already being adapted to run with castor plant’s, sunflower’s
and other vegetable’s oil, aiming to supply Rosário do Sul plant;
Oil extraction facility under construction integrated to Porto Nacional plant.
39
41. Brasil Ecodiesel
Market Capitalization (US$)
1.200.000
1.000.000
800.000
US$
600.000
400.000
200.000
-
22/11/2006
22/12/2006
22/1/2007
22/2/2007
22/3/2007
22/4/2007
22/5/2007
22/6/2007
22/7/2007
22/8/2007
22/9/2007
22/10/2007
22/11/2007
Date
Source: Bovespa – São Paulo Stock Exchange
40
42. Tax Benefits
ICMS
Piauí State:
The Company has ICMS benefits for a 10 year period, 100% off over net payable ICMS for the first 7 years and 70% off for the
3 other years.
Bahia State:
The Plant located in Iraquara has a 80% deferment on the ICMS for 12 years. If the company pay before the maturity date, it
has a discount that can reach 90% of the total amount.
Ceará State:
The Plant located in Cratéus has a deferment of 75% of the net payable ICMS for 10 years and a discount of 75% over the
amount paid. It also counts with exemption of ICMS and Import taxes over the imported vegetable oil.
Tocantins State:
The tributary expenses correspond to 2% of the industrialized products sales operations. It also counts with exemption of ICMS
and Import taxes over the imported vegetable oil.
Maranhão State:
The Company has a discount of 100% of the net payable ICMS. It also counts with exemption of ICMS and Import taxes over
the imported vegetable oil.
Rio Grande do Sul State:
The Company has a deferment of 75% for 8 years and a discount of 60% over the amount paid;
ICMS – State Value Added Tax
41
43. Tax Benefits
Income Tax
The company has received the deduction of 75% of its Income Tax and non Reimbursable Additional for 10 years (starting in 2007)
for its units located in Floriano, Cratéus and Iraquara.
The plants located in Porto Nacional and Itaquí are also able to receive the deduction and the process is under analysis of the
fiscal entity;
42
44. Revenues
The proportion of revenues from biodiesel are around 98%; and other products include glycerin and castor plant cake (fertilizer);
Considering the strong development of glycerin markets, which prices recouped a lot on the latest months, the company expects to
diversify its sources of revenue, mainly due to glycerin sales, that will expand from 2008 on;
The third quarter of 2007 marked the first time ever that Brasil Ecodiesel sold biodiesel from all six of its industrial plants. After a long
period of investment in capacity expansion and obtaining the licenses required for operation, the company has finished all the plants
and its efforts have now turned to increasing capacity utilization and operating efficiency. Improvements were already observed in the
third and fourth quarter, when the company produced a record volume of biodiesel.
60
53.3
50
40
Sales in 1000 m 3
33.7
27.7
30
20
13.6
10
0
4Q06 1Q07 2Q07 3Q07
Floriano Iraquara Cratéus Itaquí Rosário do Sul Porto Nacional
43
45. Cost of Goods Sold
3Q07
Methanol, 8.8%
Labor Force,
2.6%
Depreciation,
Vegetable oil,
2.2%
80.1%
Other costs,
6.3%
44
46. Personnel
As of November 2007, Brasil Ecodiesel Group had 1614 employees,
Employees distribution:
Business Area November 2007
Family Farming 198
Commercial Farming 12
Santa Clara Agricultural Center 135
Own Farms 118
Crushing Units 126
Biodiesel Plants 712
Engineering and Construction 164
Administrative 149
Total 1614
45
48. Board of Directors
The board of directors is Brasil Ecodiesel’s collective deliberating body, responsible for establishing its general strategic
management guidelines, including long-term strategy, controlling and monitoring its overall performance and overseeing
management’s activities. In accordance with Brazilian corporation law, each director must hold at least one common
share of the corporation.
The Company’s Bylaws establish that its board of directors must be composed of a minimum of five and a maximum of
nine directors, including the chairman and the vice-chairman. The directors are elected at its annual shareholders
meeting for a unified term of one year, with re-election permissible and until their successors have been elected and
have qualified and they can be removed at any time. In order to take office, the Company’s directors are required to
sign an acceptance letter (termo de anuência) as provided in the Novo Mercado rules. According to the Novo Mercado
rules, at least 20.0% of the directors must be independent board members.
Any decision must be taken by an affirmative vote of a majority of the members attending the meeting, including the
chairman, who retains a tiebreaking vote.
Furthermore, the new Company’s Board of Directors was elected, effective up to the next annual general meeting in
2008, which now relies on nine members, four of them are independent members. Below, the curricula vitae of the
members of the Company’s new Board of Directors:
47
49. Board of Directors
Jorio Dauster Magalhaes e Silva Ambassador Dauster is a graduate in International Relations of the Preparatory Course for the Diplomatic Career -
Instituto Rio Branco. Besides holding various positions in the Brazilian diplomatic service starting in 1961, he was
Chairman of the Board and President of the Brazilian Coffee Institute (1987 – 1990), Chief Foreign Debt Negotiator (1990 – 1991) and
Independent Board Member Ambassador to the European Union (1991 – 1998). He also held the position of CEO of Companhia Vale do Rio Doce
from 1999 to 2001.
Eduardo Marco Modiano Mr. Modiano holds undergraduate degree in systems engineering, in public administration and in Economics. He
concluded his MBA in Finance and Information System at MIT, Cambridge, Massachusetts, USA (1978) and Ph.D. in
Vice-Chairman of the Board and Economics and Operational Research from MIT, Massachusetts, USA (1978). He has broad professional experience,
Independent Board Member pointing out his positions as President of BNDES (1990-1992); President of the Privatization Committee of the National
Privatization Program (1990-1992); Vice-President of Investments at Banco Itamarati S.A., managing US$ 1.2 billion
(1993-1996); Executive Officer of Banco FonteCindam S.A., (1997-1999).
Wagner Pinheiro de Oliveira Mr. Wagner Pinheiro holds an undergraduatedegree in Economics and graduate degrees in Financial Administration
and Management and Finances He was an investment analyst for Banespa (1987 to 1991). He was advisor of
Independent Board Member Finances and Budget for the Labor Party at the São Paulo state legislature (1991 to 1994). He was elected member of
the Investment Committee (1995 to 1999) and elected as Financial Officer of Banesprev (1995 to January, 2003). He is
currently President of Petros – Petrobras’ Foundation of Social Security, Member of the Board of Directors of Telemig
Celular Participações S/A and President of the ICSS – Cultural Institute of Social Security.
Luiz Gylvan Meira Filho Mr. Gylvan holds an undergraduate degree electronic engineering from ITA (Aeronautics Engineering Institute) and a
Ph.D. in Astro-geophysics by the University of Colorado, Boulder. Mr. Gylvan created and presided the Brazilian Space
Independent Board Member Agency (1994-2001), and was Secretary of Science and Technology Policies at the Ministry of Science and
Technology (2001-2002). Creator and member of the oversight board of ATECH Tecnologias Críticas. (1997-1999). He
is currently a consultant for several entities in the technology and climate change areas.
Nelson Jose Cortes da Silveira Mr. Silveira holds an undergraduate degree in Electrical Engineering from the Fluminense Federal University, in 1979.
He took part in various projects in the electrical energy sector, including project planning, execution and the
Board Member management of transmission line works, hydroelectric and thermoelectric plants and other installations. He is a
founding partner and held the position of director of Enguia Power Ltda., during the years from 2001 to 2004. Mr.
Silveira serves as its CEO.
48
50. Board of Directors
Franciso Augusto da Costa e Silva
Mr. Costa e Silva is partner of Bocater, Camargo, Costa e Silva – Advogados Associados. He is graduated in law and
post-graduated in Executive MBA at COPPEAD / UFRJ. During his legal career at BNDES System, from 1970, Mr.
Board Member
Costa e Silva worked at several job positions, especially Legal Superintendent of BNDESPAR, Superintendent of
Financial and International, Capital Markets and Administrative Areas, Officer of BNDESPAR and of BNDES. He was
President, from 1995 to 2000, of the Brazilian Securities and Exchange Commission – CVM. He was also chairman of
the Council of Securities Regulators of the Americas – COSRA. Besides practicing law, Mr. Costa e Silva is currently
member of the Board of Directors of Companhia Vale do Rio Doce and Banco do Brasil S.A.
Marco Antonio Mouro de Castro Mr. Castro received a degree in Business Administration from Fundação Getúlio Vargas in 1977, and a post-graduate
degree in Business Economics from the same institution in 1980. He concluded courses in Strategy and Financial
Board Member Planning at PACE University, and Capital Markets, at the New York Institute of Finance, both in New York. Mr. Castro
has broad experience in capital markets and also in environment-related projects.
Leo Eduardo da Costa Hime Mr. Hime received a degree in Statistics from the Federal University of Rio de Janeiro, in 1975, and a post-graduate
degree in Finance from the Pontifícia Universidade Católica, in 1982. He held executive positions in Cia. Internacional
Board Member de Seguros and in Sul América Seguros, during the years from 1977 to 1989. Currently he is the director in charge of
areas of business planning and development of Banco Arbi S.A. Mr. Hime holds executive positions in Enguia Power
Ltda. and Quantra Petróleo Ltda., and is a member of the board of directors of Mineração Caraíba S.A.
Evon Zartman Vogt III Mr. Vogt is a North American citizen, controller of the shareholder Zartman Services LLC, pertaining to the control
block of Brasil Ecodiesel. Mr. Vogt is graduated in Harvard and MBA by the University of Colorado, and he is also an
Board Member investor with vast experience in the Latin American market, including 10 years of experience in international markets
at Wells Fargo Bank. Mr. Vogt was given a medal from the “Ordem de Rio Branco” (in recognition of outstanding
services and civic merit) in 1996 by the President of Brasil at that time, Mr. Fernando Henrique Cardoso.
49
51. Executive Officers
The Executive Board of Brasil Ecodiesel is composed of at least three and at most 16 members, either shareholders or
not shareholders, residents of Brazil, elected by the Board of Directors for a term of one year, with reelection
permissible, who must remain in their office until the installation of their successors. The installation of the members of
the Executive Board is dependent on acceptance of the Term of Agreement provided for by the Regulations of the
Novo Mercado listing segment on the São Paulo Stock Exchange (Bovespa).
The Executive Board of the Company is charged with the administration of the general operations and for practicing all
of the acts required or convenient for said administration, notwithstanding those acts which due to Brazilian Law or the
Bylaws of Brasil Ecodiesel are attributed to the responsibility of the General Meeting of Shareholders or of the Board of
Directors.
At present, the Executive Board of the Company is composed of eight members, elected by the Board of Directors
Meeting held on April 16, 2007, except for Mr. Fernando Costa, the company’s executive officer, that was elected at
their Board of Directors’ meeting held on August 6, 2007, with a term of office lasting until the Annual General Meeting
that will approve the financial statements for fiscal year 2007.
50
52. Executive Officers
Nelson Jose Cortes da Silveira President of Brasil Ecodiesel, Nelson Silveira holds a degree in Electric Engineering, graduated from Fluminense
Federal University. Mr. Silveira has participated of several projects in the electric energy sector, including making
CEO projects, executing and managing brickworks on transmission lines, hydroelectric power plants, and other plants.
Mr. Silveira is founder and partner of the company, and worked as director of Enguia Power Ltda. from 2001 to
2004.
Ricardo Luis de Lima Vianna Investors Relation’s Executive Director of Brasil Ecodiesel, Ricardo Vianna holds a masters degree in Economics
and has occupied Director’s posts in financial institutions such as BNDES, Banco Itamarati, Banco Inter American
CFO and IRO Express and Banco Fibra, acting in the capital markets and corporate finance areas. Mr. Vianna has worked as a
consultant from March 2005 to February 2007.
Guilherme Augusto D’Avila Mello Economist and Brasil Ecodiesel’s Executive Director, Mr. Raposo was the Logistic Director of Companhia
Raposo Siderúrgica Nacional between March 2005 and December 2006, being promoted from his Logistic Manager job,
which he occupied from January 2002 to February 2005.
COO
Fernando Antonio Lopes Costa Mr. Fernando Costa holds a bachelor’s degree in chemical engineering and a graduate degree in marketing. He
served as director of the Energy business unit of Sotreq S/A, the exclusive distributor for Brazil of Caterpillar, where
CCO he was also responsible for sales, leasing, engineering, product support, administration and finances activities. Mr.
Costa was involved in the development and installation of the largest biogas plant, powered by landfill gas, and the
supply and installation of 75% of the government’s emergency plants during the country’s electricity crisis.
51
53. Executive Officers
Eduardo de Come Brasil Ecodiesel’s Director since June 2005, Mr. Come received an undergraduate degree in Economics
and a graduate degree in Finance. Occupied the Business Development Manager job on Volkswagen
Officer Financial Services (currently Banco Volkswagen S.A.), between 1994 and 1996. From 1996 on, Mr. De
Come worked at DF Vasconcellos S.A., being Market Relation’s and Financial Officer between 2001 and
2005.
Ricardo Vergilio Alonso da Silva Brasil Ecodiesel’s Director since May 2004, Mr. Alonso received an undergraduate degree in Electrical
Officer Engineering and Electronics and a graduate degree in Marketing. Mr. Ricardo Alonso has worked in
Grupo Schneider Electric Brasil with jobs such as World Accounts’ Marketing Coordinator and National
Marketing Manager of Strategy and Sales.
Francisco Eduardo Garcez Ourique Brasil Ecodiesel’s Director since April 2006, Mr. Ourique received an undergraduate degree in
Officer Economics. After working as an executive in Europe for 10 years, Mr. Ourique was Commercial Director
of Bozzo Commerce Café between 1986 and 1992. He is also Shareholder and Manager of Supremo
Coffee Importação e Exportação since 1995.
Ezio Guiliani Mr. Giuliani received an undergraduate degree in Business Administration and a graduate degree rs in
Officer Finance. Mr. Giuliani has worked for 6 years in multinational auditors and consultant companies, he
also occupied Executive Direction jobs in companies such as FIAT do BRASIL and FRIBOI. Since 2003
Mr. Giuliani was acting as companies’ consultant.
52
54. New Market
São Paulo Stock Exchange Highest Corporate Governance Level
The Market
Companies volunteer themselves to adopt, in addition to the rules required by law, corporate governance rule.
Its exclusively composed by Common Shares.
The Company
A company listed in the New Market has the following additional obligations:
Tag along for all shareholders at the shareholders contract sales;
Public offer of all circulation shares;
Board of Directors formed for at least 5 people of which at least 20% have to be independent counsellors;
Cash Flow demonstratives;
IFRS or US GAAP international standards;
Public meetings with investors and analysts at least once a year;
Annual timetable of the corporate events;
Publish the terms of the contract signed between the company and the related parts;
Minimum float of 25% of the shares.
53
