2Q09 Presentation

Earnings Presentation

Eduardo de Come (CFO and IRO)

Marcos Leite (IR Manager)

• CONCLUSION OF BRASIL ECODIESEL'S FINANCIAL RESTRUCTURING.

• Conclusion of the 1st Capital Increase in the total amount of R$104 million, of which R$59

million corresponds to the conversion of debt and R$45 million to fresh money.

• Announcement of 2nd Capital Increase, expected to expire on August 07, 2009, in the minimum

amount of R$118 million and maximum amount of R$408 million, of which R$106 million will

correspond to the conversion of debt into stock.

• Restructuring of the method for amortizing R$78 million of the non-converted debt, with maturity

in 48 months and payment from July 2010, at a cost of 120% of the CDI rate.

• New contracts for the delivery of 57,000 m3 of biodiesel in 3Q09, in 4 plants.

• Sales of 19,300 m3 in 2Q09, 12,700 m3 of which in June, following the rebuilding of working

capital, which enabled the Company to resume normal operations.

• Net Revenue of R$52.2 million, Gross Profit of R$13.9 million, and Gross Margin of 26.6%.

• Adjusted EBITDA of R$1.9 million negative and Net Profit of R$21.7 million on the 2Q09. In

June, Adjusted EBITDA of R$2.4 million and Net Profit of R$1.4 million.

Destaques do Período

Volume slightly higher than 1Q09 and 2Q08, with 66% of the revenues in june, when the

company recouped its working capital ,allowing to operate in normal conditions.

Operational Performance

Biodiesel Floriano Crateús Iraquara Porto Nacional Rosário do Sul Itaquí Total

Sales of B100 (m3)

2T08 1.084,41 299,36 5.842,40 470,21 6.945,50 4.276,45 18.918,32

1T09 3.683,14 6.917,90 0,00 6.649,70 1.117,20 0,00 18.367,95

2T09 114,33 0,00 4.502,23 127,80 10.616,55 3.904,81 19.265,71

Revenues of B100

(R$ ths)

2T08 3.289,24 1.105,59 15.714,05 982,08 14.583,47 12.111,03 47.785,46

1T09 10.072,97 18.819,95 0,00 18.090,58 3.386,51 0,00 50.370,01

2T09 246,85 0,00 11.434,57 275,93 26.959,87 9.916,30 48.833,52

Income Statement

Operational Performance

2Q08 1Q09 2Q09 Jun/08 Jun/09

Net Revenue 44,985 42,620 52,198 11,597 38,342

COGS (58,992) (38,978) (38,312) (15,360) (24,578)

Gross Profit (Loss) (14,007) 3,642 13,886 (3,763) 13,764

Net Profit (Loss) (83,944) (27,416) 21,740 (52,460) 1,418

Adjusted EBITDA: to represent more accurately the specific results in the periods, we present

below the Company’s adjusted EBITDA, highlighting the results in June, which we consider a

base month.

Operational Performance

2Q08 1Q09 2Q09 Jun/08 Jun/09

Net Profit (Loss) of the period (83.944) (27.416) 21.740 (52.460) 1.418

Depreciation and Amortization 4.490 5.227 5.227 1.521 1.666

Financial Results 12831 12.829 11.517 5.424 6.204

Penalties – Petrobrás 19.797 19.797

Provisions 17.890 3.416 1.262 17.890 2.857

Tax benefits (11.022) (11.022)

Revenues from Use of Rights contract (36.383)

Other 3.816 5.692 857 1.295

Adjusted EBITDA (25.120) (5.944) (1.966) (6.972) 2.418

Gross revenue in 2Q09 was R$49.6 million, of which 98.4%, or R$48.8 million, was derived

from the sale of 19,300 m³ of biodiesel.

0

50.000

100.000

150.000

200.000

250.000

1T08 2T08 3T08 4T08 1T09 2T09

Outros

Resíduos

Glicerina

Mamona

Girassol

Biodiesel B100

Operational Performance

In 2Q09, we recognized in our Deductions tax incentives that we had been booking under

liabilities, since we needed to comply with certain conditions in order to book them under

profit. As a result, total deductions in 2Q09 represented revenue of R$2.5 million. Without the

effect of the tax benefits, we would have a deduction of R$8.5 million, representing 17% of

the Gross Revenues.

Net Revenues: With the recognition of the tax credits of around R$11 million described above,

Net Revenue was R$52.2 million in 2Q09, 22% and 14% higher than in 1Q09 and 2Q08,

respectively.

Operational Performance

Cost of Goods Sold of R$ 38.3 million in the

2Q09. Óleo vegetal remains the main item in our

production costs, and represents, together with

methanol 94% of the cost of biodiesel sold, keeping

the same proportion observed in 2008.

Vegetable oil increased its share of costs, mainly

due to the reduction in the costs of methanol,

another main input, given that the remaining

components of COGS maintained practically same

proportion observed in previous quarters.

83%

11%

2% 1% 3%

Óleo Vegetal Matéria Prima Mão de Obra GGF Depreciação

Gross Profit reached R$13.9 million, representing 26.6% of the Net Revenues.

Operational Performance

General and Administrative Expenses of R$ 9.1 milhões in the 2TQ9.

Reduction of 33% in General and Administrative Expensas related to 2Q08. It remained in the

same level of 1Q09.

Eliminating non-recurring expenses would lead the G&A to R$ 7.9 million in the quarter,

representing a reduction of 13.3% related to 1Q09 and 42.2% related to 2Q08.

10.509

13.715

9.003

11.090

9.153 9.100

7.932

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

1T08 2T08 3T08 4T08 1T09 2T09 2T09*

Despesas Gerais e Administrativas

Operational Performance

Other Operating Revenue: In 2Q09, Other Operating Revenue totaled R$28.7 million, net. We

recorded revenue of R$37.2 million related to the rescission of the contract assigning the right to

use our industrial capacity, which was recognized under long-term liabilities. This contract was

rescinded in April 2009, with an accounting effect from the write-off of a liability of some R$36.3

million, which represents the difference between the revenue recognized and the fine of R$0.9

million paid due to the rescission of the contract, with a positive impact on the Company’s

Shareholders’ Equity.

We booked an expense of R$1.3 million related to the provisions for the adjustment of

inventories to market value and for doubtful accounts.

Operational Performance

We posted a Net Financial Expense of R$11.5 million in the quarter, arising primarily from

interest charges on loans. We recorded Financial Expenses of R$15.4 million and Financial

Income of R$3.9 million, this latter mainly due to the foreign exchange gains from loans

denominated in U.S. dollar, which was converted into stock under the 1st Capital Increase.

We expect our financial expenses to remain significantly below recent figures, following the

conclusion of the conversion of debt under the 2nd Capital Increase and the restructuring of the

remaining debt, the bulk of which has a cost of 120% of the CDI overnight rate.

Operational Performance

Indebtedness

Following the conclusion of the 1st Capital Increase, Brasil Ecodiesel reduced its net debt to

R$227.1 million, due to the conversion of credits into stock as well as to the amortization of working

capital loans.

Indebtedness (in R$ thsl) 1Q09 2Q09

Short-Term 120,106 92,543

(+) Long – Term 177,991 136,912 (=) Total Indebtedness 298,097 229,455

(-) Cash and Equivalents 7,416 2,321

(=) Net Debt 290,681 227,134

Indebtedness

We present below the Company’s debt situation considering the conclusion of the debt

conversions currently in progress, which in not reflected in the 2Q09 balance sheet yet. In addition

to lower level of debt, we also consider the new debt maturities in the long term, with an effective

lengthening of the debt profile.

136,912

78,646

92,543

44,532

2Q09 After Capital Increase

Long Term Short Term

229,455

123,178

Investor Relations

Eduardo de Come

CFO and IRO

Marcos Leite

IR Manager

Tel: +55 (21) 2546-5031

Website: www.brasilecodiesel.com.br/ri

Disclaimer

• The estimates and forward-looking statements contained in this presentation are based in large part on current expectations and estimates of future events and trends that affect or could potentially affect the business, financial situation, operational results and prospects of BRASIL ECODIESEL. These estimates and statements are subject to various risks, uncertainties and assumptions and are based on the information currently available to BRASIL ECODIESEL. This presentation is also available on the website www.brasilecodiesel.com.br/ri.

• These estimates involve risks and uncertainties and do not constitute a guarantee of future performance, since actual results or developments may differ substantially form the assumptions described in the estimates and forward-looking statements. In view of the risks and uncertainties involved, the estimates and forward-looking statements in this presentation may not occur and the future results and performance of BRASIL ECODIESEL may differ substantially from those envisaged by the estimates of BRASIL ECODIESEL. Given these uncertainties, investors should not base any investment decision on these estimates and forward-looking statements.

• The words “believe”, "can”, “could”, “estimate”, “continue”, “anticipate”, “plan”, “expect” and similar expressions seek to identify estimates. These estimates refer only to the date on which they were expressed, and BRASIL ECODIESEL is not responsible for updating or revising any of these estimates in light of the occurrence of new information, future events or any other factors.

• This presentation does not constitute an offer, invitation or solicitation to subscribe to or acquire any securities, and this presentation or any information contained herein does not constitute the basis of an agreement or commitment of any kind.