Company Introduction

1. Company Introduction Leigh Anne Alford Emily Behncke Janet Mozaffari Sofie Leon

2. Who is UNICA? UNICAis Brazil’s Sugarcane Industry Association • An acronym for Uniãoda Indústria de Cana-de-Açúcar • The key lobbying organization for Brazil’s sugarcane and ethanol fuel producers • UNICA members are responsible for more than 50% of all ethanol produced in Brazil and 60% of overall sugar production. • UNICA develops position papers, statistics and specific research in support of Brazilian sugar, ethanol and bioelectricity producers

3. UNICA’s History & Global Presence • Government deregulated sugar and ethanol • 1997: UNICA was created [Focus on Sao Paulo] • UNICA is now Brazil’s largest organization representing producers of sugar, ethanol and bioelectricity • The Board of Directors: Member companies, full-timeexecutives, specialists and technical consultants with expertise in environmental issues, technology, energy, international trade, corporate social responsibility, legislation, economics and communications. • 2007: International Strategy: Lobbying& Education • Washington D.C & Brussels • 2012: March 27th Marcos Jank Resigns from Presidency

4. US & Brazil’s Ethanol History1975- 2000

5. US & Brazil’s Ethanol History2000 to today

6. Company Overview UNICA’s Mission & Priorities Mission: To play a leading role in the consolidation of the Brazilian sugarcane industry as a modern agro-industrial complex equipped to compete sustainably, in Brazil and around the world, as suppliers of ethanol, sugar and bioelectricity. Priorities• Consolidate ethanol as a globally traded commodity• Promote demand of ethanol as a clean, renewable transport fuel• Expand use of ethanol to other relevant sectors• Foment large-scale production of bioelectricity for Brazil’s domestic market• Assist member companies in becoming sustainability benchmarks• Disseminate solid, credible scientific data about the competitiveness and sustainability of sugarcane ethanol

7. Stepping back: Ethanol 101 • Ethanol is an alcohol fuel that’s distilled from plant materials, such as corn and sugar. • E10 (10% gasoline/90% ethanol): can be used in any internal combustion engine, many oil companies already blend their fuels that way • Methanol, mostly used in race cars, isn’t popular for other vehicles because it isn’t as clean and it also relies on fossil fuels • E85(85% ethanol/15% gasoline): flex-fuel vehicles • ..Alcohol is about half as energy-dense as gasoline, so you can only go half as far on a tank • Major Controversy: • Sources used to produce it.

8. Sugarcane & Ethanol in Brazil • DIVERSE ENERGY MATRIX Nearly half of Brazil’s energy comes from renewable sources. Sugarcane is the number one source of renewable energy in Brazil and supplies 18 percent of the country’s total energy consumption. • Innovative Transportation Fleet: Flex fuel vehicles that can run on either gasoline or ethanol account for 90 percent of new car sales in Brazil. That means Brazilian consumers have a choice at the pump, and they’ve chosen to replace more than half the country’s gasoline needs with sugarcane ethanol. Source: http://sugarcane.org/the-brazilian-experience

9. Sugarcane & Ethanol in Brazil Source: http://sugarcane.org/the-brazilian-experience

10. Brazil’s Sugarcane Production In million Tons

11. As UNICA looks ahead UNICA’s Key Strategies Key Strategies• Support best practices in the sugarcane industry, in a competitive, free market environment• Promote the global expansion of ethanol production and use• Encourage the continuous advancement of sustainability throughout the sugarcane industry• Play a leading role in negotiations to eliminate trade-distorting barriers against sugar and ethanol• Promote bioelectricity as a reliable alternative to fossil fuels• Support research into new technologies and uses for ethanol, particularly biorefineries• Become a global reference for solid, reliable analysis and data about the sugarcane industry.

12. Government Support for Sugarcane Brazilian Government Involvement • Unica’s ethanol production has been supported by 3 government incentives: • Guaranteed purchases by the state-owned oil company Petrobras • Low-interest loans for agro-industrial ethanol firms • Fixed gasoline and ethanol prices where hydrous ethanol sold for 59% of the government-set gasoline price at the pump. In recent years, the Brazilian untaxed retail price of ethanol has been lower than that of gasoline per gallon

13. Tarriff Removed but Challenges lie ahead • US Trade Barriers • Two years of bad weather and high sugar prices have left Brazil struggling to meet its own demands recently and many believe that even if Brazil’s low-carbon sugarcane ethanol can earn a premium price in the corn-dominated U.S. market, there just simply isn’t enough supply right now for an invasion of foreign ethanol. • Previously a huge challenge… • The US corn lobby in the US, Japan and the EU imposed significant tariffs on Brazilian ethanol which led to higher prices and lower profitability • In particular, up until late 2011, a 54-cent import tariff on Brazilian ethanol

14. UNICA in the News Brazil’s Sugarcane Industry Faces Brownout on Cost Reuters, March 2, 2012 UNICA says Brazilian Government Financing Support for Ethanol is Not a Subsidy Biofuels Digest, March 2, 2012 Sugarcane crushing in South-Central Brazil Reaches 492.70 million tons with Demand for Ethanol Stable in Early January Feb 1, 2012 Discovery Channel Documentary includes Brazilian Sugarcane Ethanol Among “Energies of the Future” February 12, 2012 EU Should Follow US Example and Remove Import Tariffs on Sugarcane Ethanol November 2, 2011 Brazil Sugar-Cane Growers to Invest $3.4Billion to Renew Crops Bloomberg, March 9, 2012 Marcos Jank Resigns from Presidency at Brazilian Sugarcane Industry Association March 27, 2012

15. Questions for UNICA How has the leadership transition affected UNICA? With the removal of the tariff, how does that change the strategic vision of your organization? How are global energy sources changing and how will this affect Brazil’s sugarcane industry? How dependent are ethanol producers on Petrobrasand other forms of government support? What research does UNICA provide to aid the industry? What other sectors is UNICA trying to push ethanol use into?