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Apresentacao da infinity bio
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0CONFIDENTIAL
BEAR STEARNS RENEWABLE ENERGY SYMPOSIUM July 2007, 10th to 13th.
Infinity Bio-Energy Business Overview
Sérgio Thompson-FloresCEO
1
Disclaimer
This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements”. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “expect,” “plan,” “intend,”“estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue” or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this presentation are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements. These factors include, but are not limited to, those discussed in our filing of documents with respect to the Alternative Investment Market (AIM) under the caption “Risk Factors”, including, but not limited to, the following: (a) a decline in general economic conditions, (b) losses due to unidentified or unanticipated risks, (c) a lack of liquidity, i.e., ready access to funds, for use in our businesses, and (d) competitive pressure. As a result, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation might not occur. Accordingly, you should not reply upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. We do not undertake any obligation to, and will not update any forward-looking statements, whether as a result of new information, future events or otherwise.
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Section
II
Table of Contents
Overview
Current SituationIIIIII
StrategyIIII
Business DevelopmentIVIV
SustainabilityVV
3
Infinity Bio-Energy
� Infinity Bio-Energy
� Founded in March 2006� IPO at London Stock Exchange’s AIM in May 2006
� Core Business
� To acquire, build and operate sugar and ethanol production facilities with a focus on Brazil
� To create a vertically integrated company, including delivery logistics to the end-product markets
� Our goal
� To become a global leader in the production and distribution of ethanol
� Team
� The Company has assembled a management team with global experience in sugar and ethanol production and in other industries, and is committed to a strategy of maximizing growth and value creation for our shareholders
Overview
4
Company Structure And Timeline
Infinity History
InfinityBio-Energy Ltd.
InfinityBio-Energy BrasilParticipações S/A
Alcana Destilaria deÁlcool de Nanuque
S/AInfinity AgrícolaUsina de Naviraí
S/A
Cristal DestilariaAutônoma de Álcool
S/A
100%
98.14% 100% 56.53% 100%
DestilariaItaúnas S/A
50.1%
Brazil
Jan/06
Mar/06 May/06 Jun/06
Jul/06
Sep/06
Oct/06
Beginning ofCoopernavi’s AcquisitionNegotiation
Constitution ofInfinity Bio-Energy
Closing ofCoopernavi
Infinity’s IPO
Beginning ofCoopernavi’sDue Diligence
Beginning ofAlcana/ Cridasa’s
AcquisitionNegotiation
Beginning ofAlcana / Cridasa’sDue Diligence
Closing ofAlcana/Cridasa
Acquisition
LOI CadasaTerm Sheet
Bioetanol Boca Chica
Beginning ofDisa / Montasa’s
AcquisitionNegotiation
Nov/06
Mar/07
Beginning ofDisa / Montasa’sDue Diligence
Jun/07
2006 2007
(1) Share purchase agreement signed
(1)
Overview
5
Infinity business strategy includes the following:
� Create processing clusters around anchor mills, initially in Brazil
� Expand ethanol production capacity through the deployment of capital and best practices in management processes
� Secure key strategic relationships with international customers and logistics and distribution partners to facilitate international expansion
� Optimize financial performance through improved efficiency of agricultural and milling operations and financial management
� Participate in the creation of alternative fuel programs for the adoption of ethanol as a fuel around the world, including country specific ethanol mix programs and flexible fuel vehicle programs
General Strategy
Strategy
6
Clusters’ Advantages
� Location� Adequate Weather and soil� Expansion potential� Proximity to transport/ports
� Cost advantages� Cost of sugarcane� Cost of land� Transportation
� Revenue/Pricing advantages� Local market pricing� Tax incentives
� Economies of Scale � Operational Synergies
Strategy
7
� 3 sugarcane mills (Usinavi, Alcana and Cridasa)� 2006/07 harvest: 3 million tons of crushing� 2007/08 harvest: 4.1 million tons on schedule - total capacity of 6.2 million tons per year
� Acquisition signed: Disa (operating mill) and Montasa (greenfield project) � Disa’s crushing capacity: 1.5 million (1.129 million tons of sugarcane in 2007/08)� Montasa’s future capacity: approximately 1.8 million tons of sugarcane per year
Existing Mills and Logistics
Alcana MillProduction (k tons)2006/2007: 5542007/2008: 1,000Capacity (1): 1,500
Usinavi MillProduction (k tons)2006/2007: 2,052 2007/2008: 2,315Capacity (1): 3,200
Operating Mills
Focused Regions
(1) Total capacity considering new investment in industrial facilities and in sugarcane crops.
Cridasa MillProduction (k tons)2006/2007: 4102007/2008: 793Capacity (1): 1,500
Current Situation
Cluster 1
Cluster 2
Usinavi
Cluster 1Cluster 1
r = 10km
Laranjaí
Jateí
Iguatemi
MSMS
Rio Paraná
PRPR
UsinaviUsinavi
NaviraNaviraíí, MS, MS Ivaté, PR Maringá, PR ParanaguParanaguáá, PR, PR
372 km 508 km
MS cluster MS cluster –– ParanaguParanaguáá PortPort
((trucktruck plusplus traintrain))
Route:
SourceSource: Transvale, Santa Terezinha : Transvale, Santa Terezinha andand ALLALL
BABAMGMG
ESES Disa
Cluster 2Cluster 2
Lajedão
Cridasa
Alcana
IbirIbiráálcoollcool
MontasaMontasa
AlcanaAlcana
CridasaCridasa
DisaDisa
Pedro CanPedro Canáário, ESrio, ES São Mateus, ES Linhares, ES VitVitóória, ESria, ESSerra, ES
54 km 232 km
ES Cluster ES Cluster –– VitoriaVitoria PortPort
Route:
SourceSource: : CalezaniCalezani
13
Infinity Bio-Energy Growth Opportunities Combined Company
3 Existing Sugarcane Mills- Usinavi- Alcana- Cridasa
Sugarcane Crushing (million Tons)06/07A: 3.007/08E: 4.111/12E: 6.2 Full Cap.: 6.2
1 Existing Sugarcane Mill- Disa
4 Greenfields (+ Montasa Project)2 BrownfieldsSugarcane Crushing (million Tons)06/07: N/A07/08E: 1.211/12E: 15.6Full Cap: 16.5
4 Existing Sugarcane Mills5 Greenfields2 Brownfields
Sugarcane Crushing (million Tons)06/07A: 3.007/08E: 5.311/12E: 21.8Full Cap.: 22.7
Pro-Forma Combined Company
+
� Considering the expansion of Infinity over the next 5 years, a total of 21.8 million of tons of
sugarcane will be crushed by 2011 (considering acquisitions plus greenfields and brownfields in
the pipeline), with a full capacity of 22.7 million tons.
Future Vision
Current Situation
14
Sugarcane Cost in Brazil
Cluster MS
Ribeirão Preto (SP)
Cluster ES
0.95 x CONSECANA Price
1.15 to 1.25 x CONSECANA Price
Third Party Sugarcane Cost
Metodology based on the price of 28 liters/ton (98% of CONSECANA Price in 2007)
Cluster MS
Ribeirão Preto (SP)
Cluster ES 1,129.03 ATR/hectare
Land Renting Cost ( to own sugarcane production)
1,243.05 ATR/hectare
2,561.36 ATR/hectare
Current Situation
15
Raw Material Transportation Costs
R$ US$*
0 Km 5 Km 2.55 1.34
6 Km 10 Km 3.35 1.76
11 Km 15 Km 4.10 2.16
16 Km 20 Km 4.81 2.53
21 Km 25 Km 5.20 2.74
26 Km 30 Km 6.14 3.23
31 Km 35 Km 6.75 3.55
36 Km 40 Km 7.33 3.86
41 Km 45 Km 7.89 4.15
46 Km 50 Km 8.41 4.43
51 Km 55 Km 8.91 4.69
56 Km 60 Km 9.39 4.94
61 Km 65 Km 9.84 5.18
66 Km 70 Km 10.27 5.41
71 Km 75 Km 10.77 5.67
Distance (km) Range
Cost per Ton
* US$ 1.00 = R$ 1.95
1. Source: Ricardo Pinto (IDEA) – 2003/04 costs adjusted to the increase of diesel price.
2. Source: IDEA, IBE
Mills Average Distance Range Cost per ton (US$)
Infinity's Mills 19 km 2.53São Paulo State 24 Km 2.74
(1)
(2)
Current Situation
16
Infinity is investing in Pellets Production Facilities, in it’s mills located in Espirito Santo and Mato Grosso do Sul.
From 2009 on, Infinity will be able to supply biomass energy pellets to Customers around the World, being able to guarantee fuel deliveries for long term contracts.
Co-firing Plant in Copenhagen using coal mixed with 15% energy pellets.
Bagasse Pellets
Business Development
17
Co-generation
� Electrical energy generation based on bagasse� Energy can be used in the production process� Co-generation surplus can be sold to other companies
� Result
� Improvement in the energy efficiency� Creates use for the byproducts� New source of income� Renewable energy source
Business Development
18
Central America and Caribbean
� Ethanol dehydration plant� 400 thousand cubic meters� Targeted tanking storage capacity of 300
thousand cubic meters
� Ethanol processing plant - Caucedo port (Boca Chica)� Projected annual crushing capacity of 2.5
million tons of sugar cane� 210 thousand cubic meters of anhydrous
ethanol
Dominican Republic
Dominican Republic
PanamaPanama
PartnersPartners ProjectProject
Central Azucarero
de Alanje, SA (“CADASA”)
(CADASA is a local producer
of sugar in Panama)
Consorcio Tecno-DEAH SA
Bio Etanol Boca Chica
Etanol Atlântico
� Ethanol dehydration plant and
� Ethanol processing plant - city of David
� Projected annual crushing of 1 to 1.5 million tons
Infinity is actively searching for ways to exploit US Export Preference Agreements through CaribbeanBasin Initiative (CBI) which grants duty-free status to a large array of products from beneficiarycountries into the US, including ethanol
Business Development
19
EnvironmentalManagement
Quality Management
SocialManagement
Life Quality
Sustainability View
Sustainability
20
Forest plantation and biodiversity
Deforestation induced by sugar cane plantation
Positive impacts
Negative impacts
Local labor
Zero GHG emissions
Soil and water contamination
Long term contracts
GHG emissions
Risk in long term market supply
Waste generation and inappropriate disposal
Ethanol with green seal
Legal compliance
Cash
Flow
Low business risk
Sustainability
�
I
Steps in a Sustainable Path
Sustainability