2. Innovative Solutions and sustainability in the area of power systems, including technologies for distributed and clean power generation. Soluções inovadoras e sustentáveis na área de sistemas de potência, incluindo tecnologias para geração de energia distribuída e limpa.

3. Inovação Innovation Eficiência Efficiency Sustentabilidade Sustainability Pilares Principles

4. To develop and provide equipment and integrated systems for distributed power generation, based on sustainable solutions and processes, contributing to a better world. Desenvolver e fornecer equipamentos e sistemas integrados para geração distribuída de energia, baseados em soluções e processos sustentáveis, contribuindo para um mundo melhor. MissionMissão

5. To be a world-class company in innovation and development of power generation technologies. Ser uma empresa de classe mundial em inovação e desenvolvimento de tecnologias em energia.Vision Visão

6. Onde estamos Where we are

7. Centro de Desenvolvimento de Produtos – São José dos Campos/SP Products Development Center Área total Total area 205.000m²

8. Technology Programmes Programas Tecnológicos

9. Motogeradores a Etanol A VSE é a única empresa com Motogeradores a Etanol certificados e homologados pela ABNT. Pioneiro, o Motogerador VSE a etanol representa um avanço tecnológico para geração de energia limpa e distribuída. Ethanol Generator Sets VSE is the only company with Ethanol Generator Sets certified and approved by ABNT. Pioneer, VSE Ethanol Generator Set represents a technological breakthrough for clean energy generation and distribution.GENSETS

10. Source: 1. Economist, European Union, Goldman Sachs Report; 2. Energy Independence and Security Act; 3) OPEC Fund for International Development - OFID; BioenergyWiki; Food And Agriculture Organization Of The United Nations Ethanol Generator Sets Environmental Restrictions open new opportunities to renewable energy...creates favorable environment for sustainable energy and big opportunity for ethanol solutions Demand drivers  Targets for the use of renewable energy in response to climate change (e.g. 20% in 2020 in EU)  Pursuit of energy independence (e.g. 136 bi liters of biofuel in 2022 in the US 2 ) Players reaction  Emissions restrictions guide R&D investments from the main global players of diesel engines  However, emissions reduction leads to efficiency loss and rising costs Ethanol as a solution  Increase ethanol production (2.5x by 2020) and transportation infrastructure (e.g. Logum pipelines) in Brazil  Many countries with ethanol consumption targets (e.g. China - blend of 10% in gasoline by 2020)  Global Expansion with cellulosic ethanol (e.g. cellulosic ethanol plant in commercial scale in Italy by 2012) Strong environmental policies growth 1 (5x more environmental policies in 2008 than 1999)... Total number of new Environmental Policies 180 160 140 120 100 80 60 40 20 0 Pre-99 199920002001200220032004200520062007 2008 Europe BRICsUSAJapanRoW

11. Ethanol Generator Sets “Zero Carbon” solution for replacing diesel gensets VSE Solution Competitive Positioning  “Zero Carbon” energy generation  Expected Competitiveness in areas with ethanol production and/or incentives. Target Market and Applications  Family of ethanol motor generators from 250 to 1,000 kW  1 st generation of 300kW genset is commercially available now  2 nd generation will expand power range and provide technical improvements  Replacement of diesel gensets in stationary applications (power generation and mechanical drive)  Customer demand for energy safety (continuous generation and standby), and cost reduction (peak)

12. VSE Ethanol Generator Set is certified by ABNT according to ISO 8528.

13. Modify diesel engines to work with bio-fuel for agricultural and industrial applications. Two main alternatives can be considered: 1 - Maintain diesel cycle including a ethanol / E85 PFI system and using a small pilot diesel to start ignition; 2- Change to Otto cycle removing whole diesel system and add an Ethanol system.

14. Alternative 1 : Compression Ignition

15. Alternative 2 : Spark Ignition

16. VSE HYBRID SYSTEMS Integrated systems for transportation, based on sustainable solutions and processes, contributing to a better world. World-class in innovation and development of state-of-the-art technologies. Focus on environmental sustainability and the use of renewable energy sources

17. Source: MIT Research, May 2010; Hybrid Driveline Systems Global trend of vehicle hybridization is motivated by fuel prices, environmental concerns and urbanization Global trend of vehicle hybridization... (% hybrid vehicles/new vehicles sales)... creates opportunity for suppliers of hybrid propulsion systems Beginning of the hybridization process  Government with a key role by offering incentives and subsidies (e.g. subsidies in the U.S. and England, Tax exemption in Japan)  Growing presence of heavy hybrid vehicles in the world Local Market  Brazil plays a distinct role in heavy vehicles market (4 th largest producer with 5% of global production) Players Reaction  Players, including automakers, are developing hybrid solutions with own structure or through partnerships MIT - Ligth Trucks

18. Hybrid Driveline Systems VSE Solution  Hybrid driveline systems for heavy vehicles (driveline is composed of a combustion engine, electric engine, generator, battery, inverter and control system).  Global trend of vehicle hybridization motivated by fuel prices, environmental concerns and urbanization  Focus on “Stop & Go” applications (urban buses and delivery trucks) – regenerative braking cycle  Potential expansion to other markets and applications.  Bio Fuel flexibility (ethanol), reduction in fuel consumption and maintenance costs, with lower emissions and noise. Target Markets and Applications

19. Energy Storage Traction Motor Generator Power Electronics Internal Combustion Engine VSE HYBRID SYSTEMS Potential markets have been identified through market studies, in order to develop capability for various market segments and to meet demands and critical needs for the next generation technology. Decisions based on market trends, state of the art technology and cost/benefits.

20. THANK YOU ! OBRIGADO !