Rio de Janeiro, March 30, 2009 - Brasil Ecodiesel Indústria e Comércio de Biocombustíveis e Óleos Vegetais S.A. (“Brasil Ecodiesel” or “Company”) (Bovespa: ECOD3), a pioneer in the production of biodiesel in Brazil, announces its results for the fourth quarter of 2008 (4Q08) and fiscal year 2008 and informs shareholders on the Company’s performance. The financial statements are prepared in accordance with Brazilian Corporation Law and presented on a consolidated basis in accordance with Brazilian accounting practices. The information for 4Q08 is presented on an adjusted basis to reflect the reality of the quarter due to the adjustments arising from the adoption of Technical Pronouncement 07 issued by the Accounting Standards Committee (CPC), which is explained in the section "Deductions" of this release. CONTACTS CONFERENCE CALL Management's Comments The year 2008 was marked by difficulties and challenges that required a massive effort from our Company and its employees, shareholders, suppliers, clients and creditors in order to continue the operations of Brasil Ecodiesel, effectively overcoming the many challenges and obstacles that emerged throughout the year. Nevertheless, the year represented an opportunity to change the path of our organization and to rethink Brasil Ecodiesel's positioning in the national biodiesel market. In this context, we initiated a restructuring process that is still ongoing, which led to reductions in fixed costs, as well as the expansion of our base of vegetable oil suppliers, our most important and costly raw material, and the restructuring of the oilseed sourcing framework and investments. We believe that these measures, among the many others taken, will strengthen the Company's position as one of the most important biodiesel suppliers in the Brazilian market. The environment in the year was particularly challenging for economies and companies worldwide because of the financial crisis that emerged, which reached proportions much greater than imagined, impacting the real economy at various levels. For Brasil Ecodiesel, the year was marked by several important events, some of which we believe are important to highlight clearly and transparently: Q QU UA AR RT TE ER RLY Y MA AR RKE ET T B BU ULLE ET TI N N / / F FO OU UR RT TH Q QU UA AR RT TE ER R O OF F2 0 0 0 0 8 8 A AN ND F FI S SC CA AL Y YE EA AR R 2 0 0 0 0 8 8 José Carlos Aguilera CEO and IRO Eduardo de Come CFO Marcos Leite IR MANAGER www.brasilecodiesel.com.br/ri E-mail: [email protected]Telefone: +55 (21) 2546-5031 English Tuesday, March 31, 2009 12:00 p.m. (EST time) 13:00 p.m. (BSB time) Connection Number: +1 (973) 935-8893 Replay: +1 (706) 645-9291 Code: 85387643 Portuguese Tuesday, March 31, 2009 10:00 a.m. (EST time) 11:00 a.m. (BSB time) Telefone: +55 (11) 2188-0188 Replay: +55 (11) 2188-0188 Access Code: Brasil Ecodiesel
Transcript
Rio de Janeiro, March 30, 2009 - Brasil Ecodiesel Indústria e Comércio de Biocombustíveis e Óleos Vegetais S.A. (“Brasil Ecodiesel” or “Company”) (Bovespa: ECOD3), a pioneer in the production of biodiesel in Brazil, announces its results for the fourth quarter of 2008 (4Q08) and fiscal year 2008 and informs shareholders on the Company’s performance. The financial statements are prepared in accordance with Brazilian Corporation Law and presented on a consolidated basis in accordance with Brazilian accounting practices. The information for 4Q08 is presented on an adjusted basis to reflect the reality of the quarter due to the adjustments arising from the adoption of Technical Pronouncement 07 issued by the Accounting Standards Committee (CPC), which is explained in the section "Deductions" of this release.
CONTACTS CONFERENCE CALL
Management's Comments The year 2008 was marked by difficulties and challenges that required a massive effort from our Company and its employees, shareholders, suppliers, clients and creditors in order to continue the operations of Brasil Ecodiesel, effectively overcoming the many challenges and obstacles that emerged throughout the year. Nevertheless, the year represented an opportunity to change the path of our organization and to rethink Brasil Ecodiesel's positioning in the national biodiesel market. In this context, we initiated a restructuring process that is still ongoing, which led to reductions in fixed costs, as well as the expansion of our base of vegetable oil suppliers, our most important and costly raw material, and the restructuring of the oilseed sourcing framework and investments. We believe that these measures, among the many others taken, will strengthen the Company's position as one of the most important biodiesel suppliers in the Brazilian market.
The environment in the year was particularly challenging for economies and companies worldwide because of the financial crisis that emerged, which reached proportions much greater than imagined, impacting the real economy at various levels. For Brasil Ecodiesel, the year was marked by several important events, some of which we believe are important to highlight clearly and transparently:
1. The sudden change (October 2007) in the government's strategy regarding the liberalization of the market, which was originally expected in January 2008 and maintained the methodology of auctions regulated by the National Petroleum Agency (ANP) for biodiesel purchases, had a substantial impact on the Company's operations. The geographic distribution of our plants, as defined in our strategic plan, would allow us to play an important role in the biodiesel market in Brazil's Northeast and North regions, given our proximity to the secondary and primary bases of the various distributors of oil distillates in these regions. However, this important advantage was offset by the current auction methodology.
2. In general, the cancellation of the free market also generated a significant environment of uncertainty in the industry that culminated in the atypical and predatory auction held in November 2007, for which the volumes sold were delivered in the first half of 2008. Clearly, biodiesel producers, including Brasil Ecodiesel, sought in this auction to defend their shares in the market, with prices at 2006 levels, incompatible with market conditions observed at the time. The strategy later proved mistaken.
3. The final ingredient, which was exogenous to all of the Company's activities, occurred precisely during the period of deliveries in the first half of 2008. Unprecedented volatility in commodity prices impacted practically all markets. The price of soybean oil, the main raw material in biodiesel production in Brazil, doubled between November 2007 and March 2008.
Despite this extremely adverse scenario, with fixed prices at the point of sale and variable prices at the point of purchase, the Company fulfilled all of its commitments made at the auction in November 2007, and also charged and received the fine related to January 2008 owed by Petrobras for its failure to not take delivery of biodiesel from our production units. Unfortunately, we did not enjoy the same success in charging the fines related to the months of February and March 2008, even though they were based on the same cause and effect relationship as the fine for January. In view of our inability to finance biodiesel deliveries by sacrificing the Company's cash flow, we filed a lawsuit that is currently in the civil courts of Rio de Janeiro state. The lawsuit questions our other contractual obligations in the first half of 2008, given that Petrobras already was delinquent with us for its failure to pay the fines described above. With this lawsuit we interrupted the losses that were being generated. The lawsuit is proceeding through the typical judicial process and our legal advisors believe that the chances of a favorable ruling are positive.
Another fundamental factor in the continuity of our operations in 2008 was the restructuring of the Company's financial debt. This process, which was concluded on August 14, 2008, enabled us to strengthen our financial position by reorganizing the structure of our debt, lengthening to 48 months (including a 12-month grace period) more than 80% of our debt maturing in the short term. The negotiations were very successful, given the severe period of the financial crisis. Here is it especially important to note the support we received from the pool of banks that assisted us, which on the same occasion made available a line to finance part of our working capital. This was the first step in our financial restructuring, which is still in progress and seeks a form of capitalization that assures all our working capital needs.
With the deficit-causing contracts behind us and the change in our debt profile, Brasil Ecodiesel was able to begin the process to modify its organizational structure, optimizing processes and
cutting expenses in the corporate area. The cutbacks in upper-level management, which included the elimination of various positions on the executive board, the closure of various support offices in the agricultural area, as well as other actions in the administrative areas, generated a reduction of approximately 20% in expenses compared to our results in the second and first halves of 2008, as well as more agile management.
In addition, over the course of the year we sought to improve the relationship between prices and sales volume, which resulted in better cash flow and margins in relation to the first half of 2008. After registering lower production volumes since the second quarter through the start of August because of financial restrictions, the Company's plants began to operate with higher volumes as of August 15, demonstrating the effective production capacity off Brasil Ecodiesel, which is Brazil's largest. Note that production capacity has been significantly underused due to the lack of working capital for operations on a large scale, and could be better allocated provided we obtain the required funding.
A good month of September, contracts with more attractive prices for the fourth quarter and falling vegetable oil prices indicated that a new reality was forming. However, on September 22, just days before the supply of volumes for delivery in the fourth quarter were due to begin, the ANP canceled the auction results for a portion of the biodiesel volumes sold by Brasil Ecodiesel. The ANP's decision surprised the Company, given that we were not informed of this possibility and that we were not given the right to an ample defense. Therefore, on October 1, we obtained a preliminary injunction suspending the ANP's decision and providing us with the opportunity to fulfill the contracts. Unfortunately, this situation had an adverse impact on the pace of shipments, since the injunction was granted only when the contract was already expected to be in force and at a time when the scheduled receipts of shipments by distributors was occurring and a new auction for them in the same volumes had already been held. Moreover, the contract under the effects of the injunction increased the bureaucracy related to the release of funds for working capital by banks, which limited sales volume in the fourth quarter to 20,089 m3.
In the second half of the year, despite the lower-than-expected shipment volumes, we were able to register positive gross margins, which was unprecedented and demonstrated that our operations could generate value, provided they were advancing at the expected scale and with the appropriate structure. The scale of the operations were impacted in the second quarter of 2008 by the extremely negative margins of contracts, in the third quarter by the limited working capital (prior to the conclusion of the financial restructuring) and in the fourth quarter by the suspension of contracts by the ANP, the lower-than-expected shipments and the working capital restrictions. Nevertheless, the Company sold 155,047 m3 in the year. This level of volume, although 18.6% lower than in 2007, is significant in the Brazilian market, and generated net revenue of R$351.0 million, 7.0% more than in 2007, supported by the better sales prices.
Part of the improvement observed in the second half of the year was also due to the higher biodiesel consumption in the Brazilian market. The adoption as of July 1 of a mandatory B3 blend for all of the diesel consumed in Brazil improved the supply-demand balance in the biodiesel market and supported more appropriate pricing for sales in the auctions in 2008.
In addition, following the ANP ruling that distributors can acquire biodiesel directly from the producers provided volumes exceed the amounts contracted in the auctions, some of the sales made by Company were directly to fuel distributors. Although these sales represent only a small percentage of the domestic biodiesel market and are isolated, they indicate a trend towards liberalization of the market, i.e. that the auction system will gradually be replaced by direct negotiations. The Company believes that a market in which biodiesel sales are no longer regulated by auctions is the best way to develop an industry, allowing players to seek the best ways to create efficiency and obtain efficiencies and returns for shareholders. This situation, combined with the introduction of higher biodiesel blends already in 2009 (4% as of July, as already mentioned by various government sources, and B5 likely in 2010), should provide an additional boost to the industry.
From the standpoint of raw materials, 2008 presented very distinct situations in different periods. At the start of the year, soybean oil prices registered sharp increases, peaking at 70.4 cents/lb in early March. After the deterioration in the financial crisis, prices initiated a downward trend, returning to the levels of mid-2006. This forced the closing of speculative positions, showing that most of the previous rise in oil prices bore no relation to actual supply and demand fundamentals, debunking the view of critics who claimed that biofuels were driving food prices higher.
From the standpoint of agricultural strategy, the investments made to develop castor oil production based on small-scale farming in Brazil’s semi-arid region did not produce the expected results for not only the Company, but also for the Brazilian market in general. In addition to the low productivity in regions where the crop was developed, in early 2008, the ANP changed the technical specifications of Brazilian biodiesel, which in practice restricted as of the second quarter the use of castor oil as a raw material for biodiesel production. Given the need to review its raw material sourcing strategy for biodiesel production, the Company began to restructure the agricultural area, especially in the area of small-scale family farming, focusing its operations on regions that have proven more promising in turns of productivity and logistics in relation to our industrial units, and concentrating investments in the oil seeds that prove best suited to each region. The main goal is to cut costs while increasing effective output, diversifying our raw material sources, which are currently concentrated in soybean. The research with jatropha curcas at our farms continues, but the effective results in terms of achieving large-scale production will still take some time, which is natural in the agricultural development process.
Despite the current market conditions, we remain focused on the same objective set since the start of our operations, which are very different from those prevailing when we developed our initial strategic plan. We are working to overcome the turbulence currently faced by the Company and the country, and reaffirm the important role of Brasil Ecodiesel in the Brazilian biodiesel market, while delivering satisfactory results to our shareholders. To achieve this, we depend on and are grateful for the dedication of our more than 1,300 employees, suppliers, creditors and clients as well as the support of the communities where we operate.
Board of Executive Officers
Comments on Consolidated Performance
The 2008 financial statements of Brasil Ecodiesel were executed in accordance with certain criteria, which changed over the course of fiscal year 2008. These points must be well understood to improve the understanding of the results presented herein. These criteria led to changes in the financial results and in the equity position, and involved the following items:
Creation of provisions for adjusting stocks;
Changes in the method for accounting tax credits (CPC Technical Pronouncement 07);
Adjustments for Law 11,638 (Value Added Statement, Deferred Assets);
Reclassification of expenses with Research & Development from deferred charges to Income Statements;
In fiscal year 2008, Brasil Ecodiesel shipped 155,047 m3 of biodiesel, 18.6% less than in 2007, with the shipment of 20,090 m3 in 4Q08. Despite the lower volume, revenue in 2008 from the sale of biodiesel was 5.2% higher than in 2007, supported by the higher sales prices (R$/m³ of biodiesel) practiced by the Company.
Biodiesel Floriano Crateús Iraquara Porto Nacional
As a result, as shown in the table below, in 4Q08, Brasil Ecodiesel recorded net revenue of R$55.1 million and gross income of R$1.2 million, demonstrating that the new operating conditions effectively enable the company to generate positive results. Results would have been even higher were it not for the difficulties involved in effectively billing the volumes sold at auction, given the working capital limitations in the period. As pointed out before, this result was adjusted to distribute over the year the higher volume of deductions in 4Q08, with the recognition in the period of deduction volumes from prior quarters because of the new rules for accounting tax benefits determined by Technical Pronouncement CPC 07. Accordingly, the results for the third quarter of 2008, adjusted for the effects of this new rule, are presented below.
1Q08 2Q08 3Q08 4Q08 Total Adjusted Net Revenues* 161,716 44,772 89,428 55,065 350,981
COGS (180,313) (58,992) (87,856) (53,833) (380,994) Gross Profit (18,598) (14,220) 1,572 1,232 (30,013) Net Income (20,482) (83,555) (28,735) (64,328) (197,100)
*Quarterly results adjusted in relation to previously stated figures due to the change in the method for accounting tax benefits following the adoption of CPC07 Technical Pronouncement 07. For details, see the item "Deductions".
Our net result in 4Q08 was primarily impacted by the financial result, due to the Company's debt level, as well as the lower-than-expected sales volume, which was insufficient to cover operating expenses despite the positive margin contribution in the period. The provisions made over the course of 2008 also substantially impacted our net income. To portray more accurately the specific result of periods, the following table shows our adjusted EBITDA.
1Q08 2Q08 3Q08 4Q08 Total Net Income (loss) (20,482) (83,555) (28,735) (64,328) (197,100) Depreciation and Amortization 4,649 4,490 4,699 4,484 18,322 Financial Result 9,922 12,831 16,347 20,502 59.602 Fines – Petrobras (12,218) (12,218) Provisions 37,687 (893) 28,792 65,586 Adjusted EBITDA (18,129) (28,547) (8,582) (10,550) (65,808)
* EBITDA adjusted for the provisions for the Petrobras fine and the market value of inventories, which did not generate a cash effect in the period.
Gross Revenue
Gross revenue in 4Q08 was R$65.1 million, of which 92.4% or R$60.1 million derived from the sale of 20,089 m3 of biodiesel. In addition, given the market conditions and aiming to strengthen its cash position, the Company sold a portion of its castor stocks, generating revenue of R$4.0 million (6.1% of gross revenue). The rest of our gross revenue came from the sale of sub-products, principally glycerin and fatty acids.
In 2008, gross revenue was R$427.1 million, of which 94.8% or R$405.0 million came from the sale of 155,047 m3 of biodiesel, and the remainder from the sale of stocks of castor, sunflower and sub-products.
Gross Revenues (R$ ‘000)
0
50.000
100.000
150.000
200.000
250.000
1Q08 2Q08 3Q08 4Q08
Other
Resíduos
Gliceryn
Castor
Sunflower
Biodiesel B100
Deductions
Total deductions from our revenue in 4Q08 was R$16.4 million, equivalent to 25.2% of gross revenue. However, this amount does not consider only deductions relative to the period of 4Q08, since, following the issue of the Technical Pronouncement CPC07 on February 25, 2009, which addresses the accounting of tax subsidies, we had to change the method for accounting tax benefits to which we are entitled and recognize the benefits calculated in other quarters. With this pronouncement, these benefits may only be recognized after the fulfillment of any associated conditions, which in the case of our plants Crateús, Rosário do Sul and Iraquara refer to the payment of deferred portions of ICMS tax, which will only occur in the coming years, when we will recognize tax benefits in our results.
After distributing benefits over the year and already including the effects from CPC 07, deductions related exclusively to 4Q08 totaled R$10.0 million, of which R$7.5 million was ICMS tax, R$3.3 million was Cofins tax and R$0.7 million was PIS tax. In the period, deductions would have been even higher, but for the use of R$2.0 million in ICMS tax credits.
In 2008, deductions were R$76.2 million. The Company recognized a total of R$49.1 million in ICMS tax, R$28.6 million in Cofins tax and R$6.2 million in PIS tax. From this total R$11.1 million in ICMS tax credits were deducted.
Net Revenues
Adjusted Net Revenue (adjusted for the changes in the procedures for accounting deductions) was R$55.1 million in 4Q08. In 2008, net revenue was R$351.0 million, growing by 7.0% in relation to net revenue in 2007 (which was restated due to the tax benefits), driven primarily by the higher sales prices.
Cost of Goods Sold
In 4Q08, COGS totaled R$53.8 million.
Vegetable oil is still the main production cost item and, together with methanol, accounts for 93.1% of the cost of biodiesel sold, which is composed by the items shown below.
COGS of B100
81.0%
12.1%
1.6% 2.9% 2.4%
Vegetable Oil
Other inputs
Workforce
General Expenses
Depreciation
In 2008, COGS was R$381.0 million.
As a percentage of adjusted net revenue, COGS improved from 98.2% in 3Q08 to 97.8% in 4Q08, effectively boosting gross income by R$1.2 million.
In 2008, COGS was equivalent to 108.6% of net revenue, generating a gross loss of R$30.0 million.
Operating Expenses
General and Administrative
G&A expenses are made up of general administration, including salaries and benefits to our employees, expenses from outsourced services, travel, telecommunications, rent, provisions for contingencies and other items. In 4Q08, the Company advanced its process to cut G&A expenses. In the quarter, we incurred some non-recurring expenses such as provisions for labor claims, freight for biodiesel sales and expenses with legal and court fees and with the financial restructuring.
General and Administrative Expenses (R$ ‘000)
4,625 5,003 4,277 4,491
5,884
8,712
4,7266,599
1Q08 2Q08 3Q08 4Q08
Personnel Expenses Administrative Expenses
To better illustrate the effects of the actions taken by the Company to cut administrative expenses, we restated in the chart below the General and Administrative Expenses excluding the effects of non-recurring expenses. Non-recurring expenses are basically composed of provisions for labor claims, freight for biodiesel sales and expenses with outsourcing (legal expenses).
10,296
11,682
9,093 8,630
10,509
13,716
9,003
11,089
1Q08 2Q08 3Q08 4Q08
Adjusted Expenses Expenses
Operational revenue (expenses)
In 4Q08, we posted R$34.5 million in Other Operational Expenses. We registered R$0.7 million in revenue, which was related to the contract assigning the right to use our industrial capacity. This is accounted in non-current assets and is written down proportionately over the 15 years during which the contract is in force. On the other hand, we posted R$35.3 million in expenses related to the provisions for inventory adjustments to market value, bad debt provisions and the costs of idle capacity at our industrial plants.
To accurately reflect the composition of the Company's costs, until 3Q08 expenses with idle capacity at plants without auction sales (due to ANP penalties or the Company’s strategy in view of its limited working capital resources) were recognized as non-operational expenses on our income statement. In 4Q08, to better reflect the scope of items included as non-operational expenses, in compliance with Law 11,638, the Company reclassified this line’s balance to Other Operating Expenses/Revenue.
Financial Result
In 4Q08, net financial expenses were R$20.5 million, chiefly due to charges related to loans. The net result was composed of financial expenses of R$20.8 million and financial income of R$0.3 million. The impact of foreign exchange variation on a financing agreement in U.S. dollar accounted for R$4.5 million of our financial expenses.
The Company did not hold derivative instruments in the period nor does it contract financial instruments for speculative purposes.
Net Income
In 4Q08, the Company recorded a net loss of R$64.3 million, mainly due to the high financial expenses, the creation of provisions (for bad debt and the adjustment to market value of stocks) and low sales volumes.
In 2008, the net loss was R$197.1 million.
Indebtedness
The Company’s net debt stood at R$171.1 million at the close of 2007 and was highly concentrated in short-term loans taken out to meet working capital needs. The pressure from short-term debt, which increased over the first six months of the year, led the Company to negotiate with bank creditors a debt restructuring agreement to lengthen maturities. With the financial restructuring concluded on August 14, and already considering the inflow of new funds obtained in the negotiation, on December 31, 2008, net debt stood at R$290.4 million, including the R$20.8 million loan contracted with the controlling shareholder.
The debt profile has lengthened in relation to the previous year, with the majority maturing as of September 2009, in other words, with a 12-month grace period and amortization over 36 months, as of the date of the financial restructuring.
Indebtedness( R$ thsl) 2007 2008 Short Term 141,245 102,967 (+) Long Term 36,715 188.493 (=) Total Indebtedness 177,960 291,460 (-) Cash and Equivalent 6,808 1,049 (=) Net Debt 171,152 290,411
Debt Maturity
102,967
72,156 69,107
47,187
43
2009 2010 2011 2012 2013
Attachment I – Income Statement
Consolidated Income Statement (in thousands of Reais)
Exchange Rate Effect (4,506) (2) (4,494) (2,318) (16,347) (20,379) (5,106) (59,478) Results before Income and Social Contribution Taxes 1,093 (28,737) (64,326) (45,980) (197,100)
IR e CSLL (1) - (4) Results Before Minority Participation 1,092 (28,737) (64,326) (45,984) (197,100)
Minority Participation - 1 (2) 3
Net Income (loss) 1,092 (28,736) (64,328) (45,981) (197,100) (1) Adjusted due to CPC 07, which changed metodology of accounting tax benefits. (2) Restated due to CPC 07 and changes of Law 11,638.
Attachment II – Balance Sheet
BALANCE SHEET OF DECEMBER,31, 2007 AND 2008 CONSOLIDATED
ASSETS 2008 2007(1) LIABILITIES AND SHAREHOLDER EQUITY
2008 2007(1)
CURRENT CURRENT LIABILITIES Cash and cash equivalents 1,049 298 Loans and financing 82,191 141,245 Trade accounts receivable 28,490 13,304 Local suppliers 16,487 27,835 Inventories 80,212 194,076 Advances of customers 14,376 14,233 Advances to suppliers 8,760 8,791 Mutual Agreement with shareholder 20,776 - Recoverable taxes 11,476 25,737 Assignment of Use Rights 2,728 -
Other receivables 207 150 Accrued payroll, vacation and related taxes 7,466 4,789
Prepaid expenses 192 449 Taxes payable 5,809 2,671 Total Current Assets 130,386 242,805 Other payable 320 10 Total Current Liabilities 150,153 190,783 NON-CURRENT NON-CURRENT Long Term Assets: Long Term Liabilities: Cash Investments - 6,510 Loans and financing 188,493 36,715 Trade accounts receivable 11,454 18,658 ICMS (state VAT) - Tax Incentive 4,762 3,258 Long Term Crops 11,583 - Contingency provision 1,485 337 Recoverable taxes 20,451 553 Deferred Revenues of tax benefits 15,090 4,470 Judicial deposits 214 489 Assignment of Use Rights 35,237 40,693 Secure deposits 104 97 Total non current liabilities 245,067 85,473 Other Credits 181 188 Investments: MINORITY INTEREST 12 12 Property, plant and equipment 250,892 247,642 Intangible assets 1,288 1,282 SHAREHOLDERS EQUITY Deferred charges 73,017 59,482 Capital 388,957 388,957 Total non-current assets 369,184 334,901 Capital reserve 15 15 Accumulated deficit (284,634) (87,534) Total shareholders' equity 104,338 301,438
TOTAL ASSETS 499,570 577,706
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
499,570 577.706
(1) Restated due to CPC 07 and changes of Law 11,638.
INVESTOR RELATIONS CONTACTS
CEO and IRO: José Carlos Aguilera IR Manager: Marcos Leite E-mail: [email protected] Site: www.brasilecodiesel.com.br/ir Phone: (00XX21) 2546-5031
About Brasil Ecodiesel: Brasil Ecodiesel was founded in 2003, and its stock is listed on the Novo
Mercado trading segment of the São Paulo Stock Exchange (Bovespa). Leader in the production of
biodiesel in Brazil, it operates with an innovative business model for the sourcing of raw materials,
seeking to guarantee supplies at competitive and stable prices, and to diversify raw material sources
by establishing new agricultural production chains in Brazil.
It is investing in Brazil's favorable natural conditions in order to become an important global producer
of a renewable fuel which substantially reduces emissions of pollutant gases. Brasil Ecodiesel
currently maintains six operational units with an installed annual biodiesel production capacity of
640,000 m3.
This release contains forward-looking statements subject to risks and uncertainties. Such forward-looking statements are based on the management’s beliefs and assumptions and information currently available to the Company. Forward-looking statements include information on our intentions, beliefs or current expectations, as well as on those of the Company’s Board of Directors and Board of Executive Officers. The reservations as to forward-looking statements and information also include information on possible or presumed operating results, as well as any statements preceded, followed or including words such as “believe”, “may”, “will”, “continue”, “expect”, “intend”, “plan”, “estimate” or similar expressions. Forward-looking statements are not guarantees of performance; they involve risks, uncertainties and assumptions because they refer to future events and, therefore, depend on circumstances that may or may not occur. Future results and value to shareholders may differ materially from those expressed or suggested by said forward-looking statements. Many of the factors which will determine these results and figures are beyond Brasil Ecodiesel’s ability to control or predict.
