4Q08 and 2008 Presentation

Earnings Presentation

José Carlos Aguilera (CEO and IRO)

Eduardo de Come (CFO)

Marcos Leite (IR Manager)

The need to restructure was driven by certain important factors that impacted the financial

situation in the first half of 2008:

Change in the government’s strategy regarding the free market;

Atypical auction held in November 2007, with a high price discount;

Unprecedented volatility in price of soybean oil;

Restructuring in progress since June 2008:

Reduction in fixed costs, including positions in upper management;

Expansion in the base of vegetable oil suppliers;

Restructuring of oilseed sourcing structure and investments;

Restructuring of more than 80% of debt existing on August 14, obtaining 48 months for

settlement and a 12-month grace period;

Period Highlights

Second half of 2008:

New auction strategies: lower

volumes, higher prices;

Launch of B3 blend, increasing

market volume;

Drop in vegetable oil costs;

Positive gross margins;

Period Highlights

26%

46% 46%49%

59%61%

1.400

1.600

1.800

2.000

2.200

2.400

2.600

2.800

jul-08 ago-08 set-08 out-08 nov-08 dez-08

20%

30%

40%

50%

60%

70%

Cotação CBOT (R$/ton) B100 (R$/m³) Margem (B100/OV)

264,0

45,076,0

330,0

264,0

66,0

304,0

17,8%26,3% 23,9%

9,8%

46,4%

26,5%

12,7%

14/2/2007 13/11/2007 14/11/2007 10/4/2008 14/8/2008 15/8/2008 24/11/2008

Total Leiloado (mil/m3) Participação da BrasilEcodiesel no Total

However:

Suspension of auction results by the ANP in 4Q08 and obtaining of preliminary injunction;

Working capital limitations and bureaucratic hurdles for release of working capital due to

contract under injunction;

Lower-than-expected shipments and withdrawals.

Period Highlights

6

Additional points for comment:

Creation of provisions for adjustments in inventories;

Changes in the method for accounting tax credits;

Adjustments from the adoption of Law 11,638 (Value Added Statement, deferred);

Reclassification of expenses with Research & Development from deferred charges to net

income;

Financial Statements

Operational Performance

Gross Revenue was R$65.1 million in 4Q08, of which 92.4%, or R$ 60.1 million, derived from

the sale of 20,090 m3 of biodiesel.

In 2008, Gross Revenue reached R$ 427.1 million, of which 94.8%, or R$ 405.0 million came

from the sale of 155.050 m3 of biodiesel and the remainder from the sale of stocks of castor,

sunflower and by-products.

Biodiesel Floriano Crateús IraquaraPorto

NacionalRosário do

SulItaquí Total

B100 sales(m3)

2007 31,884.15 44,974.50 61,033.93 17,759.80 17,464.75 17,317.08 190,434.22

4T08 - 2,217.58 4,547.42 500.90 7,609.97 5,213.12 20,088.99

2008 4,681.31 22,307.39 39,388.87 12,487.34 37,796.02 38,386.88 155,047.81

B100 revenue (R$ thousand)

2007 64,930.95 89,887.69 124,163,.5 34,941.91 34,370.97 34,073.89 382,368.57

4T08 - 6,599.26 13,533.22 1,487.20 22,716.20 15,564.09 59,899.97

2008 16,675.45 63,047.02 99,829.33 26,522.07 95,346.42 100,653.83 402,074.12

Operational Performance

In 4Q08, Adjusted Net Revenue of R$55.1 million and Gross Income of R$1.2 million.

In 2008, Adjusted Net Revenue of R$351 million and Gross Loss of R$30 million.

Positive Gross Margin in the second half of 2008 demonstrates that the new operating

conditions can generate positive results, which would be even higher if sales volumes were

closer to those obtained at the auctions. Working capital limitations restrict cash generation.

1Q08 2Q08 3Q08 4Q08 Total

Adjusted Net Revenue* 161,716 44,772 89,428 55,065 350,981

COGS (180,313) (58,992) (87,856) (53,833) (380,994)

Gross Income (18,598) (14,220) 1,572 1,232 (30,013)

Net Loss (20,482) (83,555) (28,735) (64,328) (197,100)

Operational Performance

Cost of Goods Sold of R$53.8 million in

4Q08 and R$381 million in 2008. Vegetable oil

is still the main production cost item and,

together with methanol, accounts for 93% of

the cost of biodiesel sold.

Revenue Deductions totaled R$16.4 million in 4Q08, equivalent to 25.2% of gross revenue.

This amount does not consider deductions relative only to 4Q08, since following the issue of

Technical Pronouncement CPC 07, we changed the method for accounting tax credits and

recognized the credits calculated in other quarters.

After distributing credits over the year, deductions related exclusively to 4Q08 totaled R$10.0

million, while in fiscal year 2008, deductions totaled R$76.2 million.

81.0%

12.1%

1.6% 2.9% 2.4%

B100 Oil Consumed

Raw Material-

Labor

GGF

Depreciation

Operational Performance

General and Administrative Expenses were R$11.09 million in 4Q08.

Non-recurring expenses occurred in the period are composed of provisions for labor claims,

freight for biodiesel sales and legal and financial restructuring expenses.

In 2008, General and Administrative Expenses totaled R$44.3 million.

4.625 5.003 4.277 4.491

5.884

8.712

4.7266.599

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

1Q08 2Q08 3Q08 4Q08

Personnel Expenses Administrative Expenses

Operational Performance

The Net Financial Result in 4Q08 was an expense of R$20.5 million, chiefly due to loan

charges.

The Net Result in the period was mainly impacted the high financial expenses and lower-than-

expected sales volumes, which were insufficient to overcome the operational expenses, despite

the positive margin contribution registered in the period. In addition, Adjustment to Market Value

of Stocks and Bad Debt Provisions also impacted the result.

Adjusted EBITDA losses of R$10.5 million in 4Q08 and R$65.8 million in 2008.

1Q08 2Q08 3Q08 4Q08 Total

Net income (loss) in the year (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 – Petrobrás (12,218) -12,218

Provisions 37,687 (893) 28,792 65,586

Adjusted EBITDA (18,129) (28,547) (8,582) (10,550) (65,808)

Indebtedness

Net Debt went from R$171 million in 2007

to R$290.4 million in 2008.

102.967

72.156 69.107

47.187

43-

20.000

40.000

60.000

80.000

100.000

120.000

2009 2010 2011 2012 2013

The financial restructuring concluded on

August 14 lengthened maturities, with the

majority of debt due amortized over 36 months

with a 12-month grace period.

Endividamento (em R$ Mil) 2007 2008

Short term 141,245 102,967

(+) Long Term 36,715 188,493

(=) Total Indebtedness 177,960 291,460

(-) Cash Equivalents 6,808 1,049

(=) Net Debt 171,152 290,411

Investor Relations

José Carlos Aguilera

CEO and IRO

Eduardo de Come

CFO

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.