Brazilian Sugarcane February 2013 Joel Velasco Safe Harbor Summary - - PowerPoint PPT Presentation

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Brazilian Sugarcane February 2013 Joel Velasco Safe Harbor Summary - - PowerPoint PPT Presentation

Brazilian Sugarcane February 2013 Joel Velasco Safe Harbor Summary This presentation and oral statements accompanying this presentation contain forward-looking statements, and any statements other than statements of historical facts could be


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Brazilian Sugarcane

February 2013

Joel Velasco

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This presentation and oral statements accompanying this presentation contain forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as Amyris’s financial outlook, anticipated products, production roadmap and construction of production facilities, short-term and long-term product sales expectations, commercialization expectations, production volumes and costs for various potential products and associated product launch expectations, and expectations for R&D and commercial relationships) that involve risks and uncertainties. These statements are based on management’s estimates and current expectations and actual results and future events may differ materially due to changes in Amyris’s business and various risks and uncertainties, including those associated with any delays or failures in development, production and commercialization of products, liquidity and ability to fund capital expenditures, Amyris’s reliance on third parties to achieve its goals, and other risks detailed in the “Risk Factors” section of Amyris’s quarterly report on Form 10-Q filed on November 9, 2012. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Safe Harbor Summary

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High-Value Products from Sugarcane

CHEMICALS & FUELS PLANT SUGARS INDUSTRIAL SYNTHETIC BIOLOGY PLATFORM

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Brazil is #1 in Sugarcane

 Brazil is the world’s largest cane producer, twice #2 India  Brazil's South-Central region accounts for 90% of country’s cane harvest  Brazil’s sugarcane sugar yields have grown at 3% CAGR since late 1970s

Source: University of Minnesota Institute on the Environment; Brazilian Sugarcane Industry Association (UNICA), Food and Agricultural Organization (FAO)

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Millions of Hectares (2012) Brazil Land 850 Arable Land 330 Crop Land 70 Soybean 27 Corn 15 Sugarcane 8.5 Cattle Pasture 198

5

Sugarcane Industry in Context

1 Hectare = 2.5 acres

Sugarcane occupies 2.5%

  • f Brazil’s arable land to

produce over 600 million tons per crop year

Source: UNICA, CONAB, IBGE

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Million Hectares

Total Area Native Vegetation Land in Use Other Uses 850 554 258 38

100% 65% 30% 5%

Pasture Crop Land Sugarcane

8.5

~1%

60

7%

198

23%

204

24%

Conservation Units and ILs

135

16%

Protected Areas

215

25%

Other Native Vegetation

Land Uses in Brazil

Source: ICONE, IBGE (PAM 2010 and Censo Agropecuário), MMA, INPE (TerraClass), Agricultural Land Use and Expansion Model Brazil Ag-LUE-BR (Gerd Sparovek, ESALQ/USP). Developed by: UNICA and Cosan. Note: ILs = Indigenous Lands. Other Native Vegetation include Legal Reserves (RLs)

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Brazilian Industry Output

Source: UNICA, CONAB. Data is estimate for 2011 crop year.

RAW SUGAR

37 Million Tons

¼ of World Demand

ETHANOL

6 Billion Gallons

½ of U.S. Production

ELECTRICITY

1,500 MW

~3% of Brazil Demand

SUGARCANE

+500 Million Tons

⅖ of World Crop

Source: UNICA and MAPA. Note: Data is estimate.

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Historical Production

100 200 300 400 500 600 700 5 10 15 20 25 30 35 40 45 75/76 76/77 77/78 78/79 79/80 80/81 81/82 82/83 83/84 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13*

Sugarcane (million tons) Sugar (million tons) Ethanol (billion liters)

Sugarcane Sugar Ethanol

Source: UNICA and MAPA. Note: 12/13 data is estimate.

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65 70 75 80 85 90 95

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Source: CENSO – CTC. 12/13*- data until January 2013.

Agricultural Challenge

100 200 300 400 500 600 700

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

CROP SIZE Metric Tons PRODUCTIVITY Tons per Hectare

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0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Feb-13

Source: ANP. Compiled by: UNICA.

Gasoline Price at the Pump (including only federal taxes)

Market Challenge

R$/Liter

While pump prices remained stable, the net price paid to refineries increased by 34% through reduced taxation in the period

+ 34%

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200 400 600 800 1,000 1,200 1,400

2011/12 2015/16 2020/21 Sugarcane Production in (MT) Sugar Anhydrous Ethanol Hydrous Ethanol

560

Million tons

886

Million tons

1,2

Billion tons

Source: UNICA. Note: Estimated values ​of the harvest 2011/12.

SUGAR: To meet domestic demand and retain current share (50%) of global sugar market, annual sugar production will have to increase by 13.7 million tons by 2020. ETHANOL: Projected production to meet 50% (vs 36% currently)

  • f estimated ethanol market in

Brazil plus about export demand

  • f about 13 billion liters (4 BGY).

OTHERS: Other uses of sugarcane could account for upwards of 5 billion liters ethanol- equivalent.

UNICA Vision: Growth Needed

2020 SCENARIO