2. Agenda
Overview – Nelson José Cortês da Silveira (CEO)
Results Presentation – Ricardo Luis de Lima Vianna (CFO and IR)
2
3. Overview
Sales: 27,697 m3, an increase of 103% compared to 4Q06;
Revenues: R$ 61.1 million, an increase of 100% compared to 4Q06;
Net Loss: Reduction to R$ 0.5 million;
Transesterification Plants: Floriano, Crateús and Iraquara operational, but
under installed capacity; Porto Nacional operational in May, pending
authorization to begin sales; Rosário do Sul and Itaquí pre-operational;
Oil Extraction Plants: São Luiz Gonzaga and Crateús operational; Iraquara
pre-operational; Porto Nacional and Floriano under construction and planning;
Family Farming Integration Network: expansion of 71.9%, to 57,606 families.
3
5. Industrial Structure and its Evolution
Evolution of installed biodiesel Largest biodiesel producer
production capacity (thousand m3)
900
of Brazil in terms of
800
800 installed capacity.
700
600
thsl m3
500
400
400
282
300
200
100 27
0
dec/05 dec/06 may/07 dec/07E
Transesterification Plants
4 operational (1 under expansion)
2 pre-operational
1 planning stage
5
6. Vegetable Oil Markets Evolution
Soy Oil CBOT went up roughly 12.5% in 1Q07, reaching at US$ 725.98/ ton, around 38%
over the average of the last 5 years.
Palm Oil prices increased 4.5% in Malaysia market, the main producer.
Reflecting higher global demand for biofuels, today and for the future.
Soy and Palm Oil Prices
2100 740
720
2050
700
The Market endorses Brasil
2000
680 Ecodiesel`s strategic vision
to reduce its exposure to oil
MYR / ton
660
US$/ ton
1950 640 markets by establishing new
620
1900
600
oil supply chains.
580
1850
560
1800 540
b
b
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b
ar
ar
16 r
21 r
26 r
29 r
ar
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/ja
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/m
8/
5/
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21
26
3/
22
25
30
11
17
1/
6/
9/
Palm (MYR/ ton) Soy (US$/ ton)
6
7. Agricultural Expansion
Situation in 03.31.2007:
57,606 families under 71.9% higher than
contract 4Q06
26,000* hectares of
Mainly for
owned lands and 1,200
jatropha curcas
ha of leased lands
plantations
* Does not include Núcleo Santa Clara area
7
9. Financial Performance
Sales, revenues and margins – Quarterly Evolution
Cost of goods sold 4Q06 and 1Q07
Operational Expenses 4Q06 and 1Q07
Cash, Cash Equivalents and Investments in the 1Q07
Capital Markets
9
10. Gross Revenues, Net Revenues and Gross Margins
Gross Revenues of R$ 61.1 million, Net Revenue of R$ 48.3 million and gross
margin of 7.3% in the 1Q07.
Selected Performance Indicators in the Last 4 Quarters
70,000 25%
23.8% 61,130
60,000
20%
50,000
17.6%
15%
40,000
30,448 27,697
30,000
9.9% 10%
18,296 7.3%
20,000
12,780 13,637
5%
8,414
10,000
5,839
0,0 0%
2Q06 3Q06 4Q06 1Q07
Sales (m3) Gross Revenues (R$ ths) Gross Margin
10
11. Cost of Goods Sold
The cost of goods sold totaled R$ 44.7 in the 1Q07, representing 92.7% of the net
revenue on the period.
Comparison CGS: 4Q06 – 1Q07
100%
90%
78.6% 80.2%
80%
70%
60%
50%
40%
30%
13.1%
20%
10.6% 4.1% 3.2% 2.4% 2.4%
10%
0.5% 1.0% 1.3% 2.5%
0%
Vegetable Oil Methanol Other Inputs Employees General Costs Depreciation
4Q06 1Q07
11
12. Expenses
General and Administrative Expenses: R$ 6.7 million in the 1Q07
Tax Expenses: R$ 0.7 million in the 1Q07
Financial Expenses: (R$ 3.2 million) in the 1Q07
8,0
6.7
6.1
6,0
4,0
2,0 0.7
0.5 0.5
0,0
G&A Tax Financial
(2,0)
(4,0) (3.2)
4Q06 1Q07
12
13. Cash and Investments
CAPEX and other expenditures – 1Q07 R$ million
Reached R$ 115 million in the 1Q07; R&D
Other
1.3
R$ 47.7 in Capacity expansion 1.4
1.1%
Oil Extraction 1.2%
Transesterification 13.0
Positive net indebtedness of R$ 42.3 29.4 11.3%
million on 1Q07. 25.5%
Working Capital &
Inventory
65.7
56.9%
Agriculture
4.5
Indebtedness 3.9%
Indebtedness (em R$ thousand) 4Q06 1Q07
Short Term R$ 5,730 R$ 5,076
(+) Long Term R$ 49,764 R$ 49,740
(=) Total Indebtedness R$ 55,494 R$ 54,816
(-) Cash and Cash Equivalents R$ 211,855 R$ 97,077
(=) Net Debt (R$ 156,361) (R$ 42,261)
13
14. Capital Market
ECOD3 performance in the 1Q07
13.00 48,000
46,000
12.00 44,000
42,000
11.00
40,000
38,000
10.00
36,000
9.00 34,000
32,000
8.00 30,000
b
b
b
b
b
b
ar
ar
ar
ar
ar
ar
ar
ar
n
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/m
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/m
/m
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6/
9/
1/
2/
5/
14
21
26
10
15
18
23
29
6/
1/
9/
14
19
22
27
30
ECOD3 - 1Q07 Un. ECOD3 IBOV
No of Stocks 10,750,400
No of Operations 10,878 ECOD3 - 1Q07
Low 8.77
ECOD3 - 1Q07 R$ million
High 12.65
Volume 117.68
Average 10.95
Average Volume 1.93
14
15. Investor Relations
Ricardo Luis de Lima Vianna
CFO and IR Officer
Roberto Honczar
IR Manager
Marcos Leite
IR Analyst
Phone: +0 55 (21) 2546-5031
Website: www.brasilecodiesel.com.br/ri
15
16. Aviso
This document may contain prospective statements, which are subject to risks and
uncertainties, as they were based on the expectations of Company’s management
and on available information. These prospects include statements concerning the
Company’s current intensions or expectations for our clients; this presentation will
also be available on our website www.brasilecodiesel.com.br/ir and also in the IPE
system at the Brazilian Security Exchange Commission – CVM.
Forward-looking statements refer to future events which may or may not occur. Our
future financial situation, operating results, market share and competitive positioning
may differ substantially from those expressed or suggested by said forward-looking
statements. Many factors and values that can establish these results are outside
Company’s control or expectation. The reader/investor is prevented not to completely
rely on the information above .
The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend",
“forecast" and similar words, are intended to identify affirmations. Such estimates
refer only to the date in which they were expressed, therefore Company has no
obligation to update said statements.
This presentation does not consist of offering, invitation or request of subscription
offer or purchase of any marketable securities. And, this statement or any other
information herein, does not consist of a contract base or commitment of any kind.
16
