Infinity Bio-Energy Business Overview
BEAR STEARNS RENEWABLE ENERGY SYMPOSIUM
July 2007, 10th to 13th.
Sérgio Thompson-Flores
CEO
CONFIDENTIAL
0
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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Table of Contents
Section
II Overview
II
II Strategy
III
III Current Situation
IV
IV Business Development
V
V Sustainability
2
Overview
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
3
Overview
Company Structure And Timeline
Infinity
Bio-Energy Ltd.
100% Brazil
Infinity
Bio-Energy Brasil
Participações S/A
98.14% 100% 56.53% 100% 50.1%
Alcana Destilaria de Cristal Destilaria (1)
Usina de Naviraí Destilaria
Álcool de Nanuque Autônoma de Álcool Infinity Agrícola
S/A Itaúnas S/A
S/A S/A
Infinity History
2006 2007
Beginning of
Alcana/ Cridasa’s Beginning of
Acquisition Disa / Montasa’s
Negotiation Acquisition LOI Cadasa
Constitution of Infinity’s Closing of Term Sheet
Negotiation
Infinity Bio-Energy IPO Coopernavi Bioetanol Boca Chica
Jan/06 Jul/06 Oct/06 Mar/07
Mar/06 May/06 Jun/06 Sep/06 Nov/06 Jun/07
Beginning of Beginning of Beginning of Beginning of
Closing of
Coopernavi’s Coopernavi’s Alcana / Cridasa’s Disa / Montasa’s
Alcana/Cridasa
Acquisition Due Diligence Due Diligence Due Diligence
Acquisition
Negotiation
(1) Share purchase agreement signed
4
Strategy
General Strategy
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
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Strategy
Clusters’ Advantages
Location Revenue/Pricing advantages
Adequate Weather and soil Local market pricing
Expansion potential Tax incentives
Proximity to transport/ports
Cost advantages Economies of Scale
Cost of sugarcane Operational Synergies
Cost of land
Transportation
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Current Situation
Existing Mills and Logistics
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
Alcana Mill
Production (k tons)
2006/2007: 554
2007/2008: 1,000
Capacity (1): 1,500
Cridasa Mill
Usinavi Mill Production (k tons)
Production (k tons) 2006/2007: 410
Operating Mills 2006/2007: 2,052 2007/2008: 793
Focused Regions 2007/2008: 2,315 Capacity (1): 1,500
Capacity (1): 3,200
(1) Total capacity considering new investment in industrial facilities and in sugarcane crops.
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Cluster 2
Cluster 1
Cluster 1
Jateí
ná
ra
Laranjaí
Pa
o
Ri
MS r = 10km
Usinavi
Iguatemi
PR
Route: Naviraí, MS Ivaté, PR Maringá, PR Paranaguá, PR
372 km 508 km
MS cluster – Paranaguá Port
(truck plus train)
Usinavi
Source:
Source: Transvale, Santa Terezinha and ALL
Cluster 2
MG
Lajedão
BA
Ibirá
Ibirálcool
Alcana
Cridasa
ES Montasa
Disa
Route: Pedro Canário, ES São Mateus, ES Linhares, ES Serra, ES Vitória, ES
54 km 232 km
ES Cluster – Vitoria Port
Alcana
Cridasa
Disa
Source:
Source: Calezani
Current Situation
Future Vision
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.
Pro-Forma Combined Company
Infinity Bio-Energy Growth Opportunities Combined Company
+
3 Existing Sugarcane Mills 1 Existing Sugarcane Mill 4 Existing Sugarcane Mills
- Usinavi - Disa 5 Greenfields
- Alcana 2 Brownfields
- Cridasa 4 Greenfields (+ Montasa Project)
Sugarcane Crushing (million 2 Brownfields Sugarcane Crushing (million
Tons) Sugarcane Crushing (million Tons) Tons)
06/07A: 3.0 06/07: N/A 06/07A: 3.0
07/08E: 4.1 07/08E: 1.2 07/08E: 5.3
11/12E: 6.2 11/12E: 15.6 11/12E: 21.8
Full Cap.: 6.2 Full Cap: 16.5 Full Cap.: 22.7
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Current Situation
Sugarcane Cost in Brazil
Land Renting Cost ( to own sugarcane production)
Cluster MS 1,243.05 ATR/hectare
Ribeirão Preto (SP) 2,561.36 ATR/hectare
Cluster ES 1,129.03 ATR/hectare
Third Party Sugarcane Cost
Cluster MS 0.95 x CONSECANA Price
Ribeirão Preto (SP) 1.15 to 1.25 x CONSECANA Price
Metodology based on the price of 28 liters/ton
Cluster ES
(98% of CONSECANA Price in 2007)
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Current Situation
Raw Material Transportation Costs
(1)
Cost per Ton
Distance (km) Range R$ US$*
0 Km 5 Km 2.55 1.34
6 Km 10 Km 3.35 1.76
11 Km 15 Km 4.10 2.16
16 Km 20 Km 4.81 2.53
21 Km 25 Km 5.20 2.74
26 Km 30 Km 6.14 3.23
31 Km 35 Km 6.75 3.55
36 Km 40 Km 7.33 3.86
41 Km 45 Km 7.89 4.15
46 Km 50 Km 8.41 4.43
51 Km 55 Km 8.91 4.69
56 Km 60 Km 9.39 4.94
61 Km 65 Km 9.84 5.18
66 Km 70 Km 10.27 5.41
71 Km 75 Km 10.77 5.67
(2)
Mills Average Distance Range Cost per ton (US$)
Infinity's Mills 19 km 2.53
São Paulo State 24 Km 2.74
* US$ 1.00 = R$ 1.95
1. Source: Ricardo Pinto (IDEA) – 2003/04 costs adjusted to the increase of diesel price.
15 2. Source: IDEA, IBE
Business Development
Bagasse Pellets
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.
16
Business Development
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
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Business Development
Central America and Caribbean
Infinity is actively searching for ways to exploit US Export Preference Agreements through Caribbean
Basin Initiative (CBI) which grants duty-free status to a large array of products from beneficiary
countries into the US, including ethanol
Partners
Partners Project
Project
Central Azucarero Ethanol dehydration plant and
de Alanje, SA (“CADASA”) Ethanol processing plant - city of David
Panama
Panama
(CADASA is a local producer
Projected annual crushing of 1 to 1.5 million tons
of sugar in Panama)
Consorcio Tecno-DEAH SA Ethanol dehydration plant
400 thousand cubic meters
Bio Etanol Boca Chica Targeted tanking storage capacity of 300
thousand cubic meters
Dominican
Dominican
Republic Etanol Atlântico
Republic 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
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Sustainability
Sustainability View
Environmental Quality Social
Life Quality
Management Management Management
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Sustainability
Steps in a Sustainable Path
Ethanol with
Forest plantation green seal
and biodiversity Low business
Local labor
risk
Long term contracts
Positive
impacts Zero GHG
Sustainability
emissions
Cash Legal
compliance
Flow
Negative Soil and water
GHG emissions impacts
contamination
I
Waste generation and Risk in long term
inappropriate disposal market supply
Deforestation induced by
sugar cane plantation
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