ABLC! Advancing Renewable Chemicals! November 10, 2014! Copyright 2014 Renewable Energy Group, Inc.

Transcription

1 ABLC! Advancing Renewable Chemicals! November 10, 2014!

2 Safe Harbor Statement! This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; changes in the spread between biodiesel prices and feedstock costs; the future price and volatility of feedstocks; the future price and volatility of petroleum and products derived from petroleum; availability of federal and state governmental tax credits and incentives for biodiesel production; the effect of excess capacity in the biodiesel industry; unanticipated changes in the biodiesel market from which we generate almost all of our revenues; seasonal fluctuations in our operating results; competition in the markets in which we operate; our dependence on sales to a single customer; technological advances or new methods of biodiesel production or the development of energy alternatives to biodiesel; our ability to successfully implement our acquisition strategy; our ability to use the technology acquired from LS9 to produce renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; our ability to successfully integrate the assets and employees recently acquired from Syntroleum Corporation and Dynamic Fuels into our existing business; whether we will be able to overcome past operational difficulties and produce renewable diesel produce renewable diesel profitably at the recently acquired Dynamic Fuels Facility; and other risks and uncertainties described from time to time in REG s annual report on Form 10-K, quarterly reports on Forms 10-Q and other periodic filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this presentation and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations. This presentation reports Adjusted EBITDA, a non-gaap financial measure. A reconciliation of Adjusted EBITDA to net income, the most comparable GAAP measure, is provided in the Appendix to this presentation. Printed

3 Integrated Biorefinery Model! Sales, Marketing and Distribution Renewable, Waste & Lower Carbon Feedstocks Bio-Refining Renewable Chemicals Biofuel REG Marketing & Logistics REG Energy Services C U S T O M E R S Petro-Fuel Crude Oil Refining Sales, Marketing and Distribution Petro- Chemicals 2

4 REG Generates Value in Many Ways! Revitalization Benefiting Cities & Rural Areas Energy Security Long-Term Availability Environmental Stewardship Cleaner Air, Lower Carbon Food Security Food THEN Fuel Energy Diversity Renewable Alternatives Jobs & Economic Development New Investment 3

5 Track Record of Growth! Gallons Sold Annual Historical (mm gal) Revenue Annual Historical ($mm) Q1- Q2 $132 $216 $824 $1,015 $1,498 $552 Q1- Q YTD Adjusted EBITDA Annual Historical ($mm) YTD Balance Sheet Position Annual Historical ($mm) 6/30/ /31/ /31/ /31/2011 $107 $97 $148 Cash & Marketable Securities 2 $125.9 $153.2 $66.8 $33.6 Restricted Cash 2 $ $8 $8 Q1- Q2 Net Working Capital $187.6 $249.3 $109.2 $90.2 Total Assets $1,069.1 $740.9 $495.8 $484.4 $(12) YTD Term Debt 2 $249.5 $34.2 $37.0 $81.6 Net Book Value $673.7 $594.1 $324.8 $120.6 Note: 1 See Appendix (Slide 52) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP 2 At quarter end term debt included $100 million Gulf Opportunity Zone bonds. Term debt net of restricted cash was $148.2 million. At June 30, 2014, $101.3 million was in escrow and recorded as restricted cash in support of the bonds. On July 8, 2014, a letter of credit was secured for the bonds, and a certificate of deposit for $101.3 million obtained to support the letter of credit. 4

6 Indicative Product Revenue Growth! Illustrative Revenue ($) Time Biodiesel Renewable Diesel Chemicals Feedstock Biomass-based Diesel 5

7 Business Model Serves our Customers and Value Chain with Collaborative and Complementary Products, Services, Technologies & Capabilities! 6

8 Growth Tactics! Optimize and grow our fully-integrated biomass-based diesel offering across North America Acquisitions Expand into the production of additional advanced biofuels, renewable chemicals and related products and services Diversify into environmental services and specialty products Organic and with partners Investments Grow our biomass-based diesel business internationally Joint Ventures 7

9 Company Highlights: Organic and M&A Growth! Nameplate Biomass-based Diesel Production Capacity Growth (MMGY) Future 482 Advanced Biofuels Houston - Newton - Danville - Seneca - Clovis Biodiesel, LLC Albert Lea - New Boston - Atlanta - Ultra Green Energy Services - Mason City- Geismar - New Orleans Emporia Clovis Atlanta American BDF, LLC Renewable Chemicals Life Sciences - Synthetic Fuels - 2 Note: 1 Assumes completion of construction of New Orleans, Emporia, Clovis and Atlanta facilities at currently planned nameplate capacity. Timing of construction will depend on availability of financing and other factors. 2 Assets acquired by REG Life Sciences which is today a development stage company 8

10 Advanced Biofuel Production Leadership! ACTIVE 332 MMGY Nameplate Capacity Repairs required or partially completed PC High FFA REG Albert Lea REG Danville REG Geismar Feedstock Flexible REG Atlanta High FFA BD - 30 MMGY BD - 45 MMGY RD - 75 MMGY Low FFA BD - 15 MMGY REG Clovis REG Mason City REG New Boston REG Houston BD - 15 MMGY REG Emporia BD - 30 MMGY BD - 15 MMGY BD - 35 MMGY Refined Feedstock Only REG Newton REG Seneca REG Ralston Low FFA BD - 60 MMGY REG New Orleans BD - 30 MMGY BD - 60 MMGY BD - 12 MMGY BD - 60 MMGY Note: BD Biodiesel Plant RD Renewable Diesel Plant 9

11 REG Life Sciences! 10

12 Broad Technology Platform Provides Feedstock Flexibility and Product Optionality! 11

13 Benefits from REG Life Sciences! Fits into multi-feedstock, multi-product, multi-technology business structure Demonstrated technology Ability to use glycerin output from biodiesel production as feedstock input Expands our product footprint in a complementary manner Supply chain Customer base Potential co-location of manufacturing Technology is advanced sufficiently for: Targeted new product development May choose product based on economics (vs. feasibility) Agile shifting among products Okeechobee, Florida Fermentation Facility 12

14 Specialty Chemicals are Under Development! 5,000 4,000 Specialty Chemical Price Range $/MT of product 3,000 2,000 1,000 Commodity Spec FaMy Alcohol Price Range Biodiesel Price Range Source: REG 0 $0.10 $0.20 $0.30 $0.40 Net cost of sugar per lb 13 FALC FAME

15 Contact Information! (NASDAQ: REGI) 416 S. Bell Ave. PO Box 888 Ames, IA Toll Free: (888) REG-8686 Phone: (515) REG Life Sciences, LLC Eric M. Bowen Vice President, Corporate Business Development & Legal Affairs (650)