Glossary

A

ADR

American Depositary Receipt. ADR is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign stock traded on a U.S. exchange.

Anhydrous Fuel Ethanol

Used as a petrol additive.

Anhydrous Industrial Ethanol

Used in cleaning product formulas, by the chemical industry and for the manufacture of paints and varnishes.

Annual General Meeting (AGM)

A mandatory, public yearly meeting of the general membership of an organization.

ANP

Petroleum National Agency of Brazil.

ATR/ha 

Combined produtivicty index of the sugarcane fields, mesured by kilograms of TRS per hectare.

B

Base Oil

Raw material used to elaborate mainly lubricants and other products.

BDR

Brazilian Depositary Receipt. BDR is a certificate representing shares of foreign companies traded in Brazil.

Brazilian Standard Hydrous Ethanol

Intended for domestic use and for manufacturing ether.

Brent

A type of sweet crude oil that is used as a benchmark for the prices of other crude oils.

C

CBLC

Brazilian Settlement and Custody Company.

CVM

Securities and Exchange Commission of Brazil. It assures the efficiency and functionality of the market, protects investors, and provides access to appropriate information.

Cogeneration

Power generation from sugarcane biomass.

Common Shares

Holders of common shares are typically entlited to one vote per share.

Consecana

Sugarcane payment system by sucrose content, with voluntary participation, with technical criteria for evaluating the quality of the sugarcane delivered by agricultural producers to industries, which determines the price of this raw material.

D

E

Equivalent gas volumes

Otto-cycle volumes adjusted by the calorific power of the Ethanol.

Extraordinary General Meeting (EGM)

EGM is usually called on a short notice and deals with an urgent matter.

F

FMV

“Fair Market Value”

Follow on

It is an issuance of stock subsequent to the company’s initial public offering.

Free Float

The portion of its shares that can be publicly traded.

G

H

Hydrous Ethanol Fuel

Direct fuel supply for vehicle engines.

Hydrous Ethanol Hidratado Neutro

Used in the manufacture of alcoholic beverages, this product is obtained by means of a neutral mixture of ethanol and demineralized water, which yields a product of lower alcoholic content than the neutral hydrous ethanol.

I

IFRS

International Financing Reporting Standards. IFRS is a set of accounting standards stating how particular types of transactions and other events should be reported in financial statements.

IPO

Initial Public Offering. Its the very first sale of stock issued by a company to the public.

J

Japanese Standard Hydrous Ethanol

Intended for the same uses as the Brazilian Standard, but this is a higher quality ethanol, more suited for export.

K

Korean Standard Hydrous Ethanol

Intended for the same uses as the Brazilian Standard, but this is an intermediate quality ethanol, which is also much in demand for export.

L

M

Market Share

It represents the percentage of an industry or market’s total sales that is earned by a particular company over a specified time period.

N

O

Otto cycle volumes

Sum of gasoline and ethanol volumes.

P

Preferred Shares

Generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights.

Q

R

Rating

An evaluation of a corporate or municipal bond’s relative safety from an investment standpoint.

ROIC

Return on Invested Capital.

S

SEC

Securities and Exchange Commission of the United States.

Sindicom

National Syndicate of Fuel and Lubricant Distributors of Brazil.

T

Tag-along

It gives the minority shareholder the right to join the transaction and sell his minority stake in the company.

TCH

Produtivicty index of the sugarcane fields, mesured by Tonnes of Cane per Hectare.

TRS

“Total Sugar Recoverable”. Produtivicty index of the sugarcane fields, mesured by kilograms of TRS per tons of sugarcane.

U

V

VHP Sugar

“Very High Polarizated”. Designated for the foreign market, its bulk composition enables customers to transform it into different types of consumable sugars.

W

X

Y

Z