Business Update August 8, Copyright 2014 Renewable Energy Group, Inc.

Transcription

1 Business Update August 8, 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 Introduction and Overview 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) $107 $97 $148 Cash & Marketable Securities 2 6/30/ /31/ /31/ /31/2011 $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 $(12) Total Assets $1,069.1 $740.9 $495.8 $484.4 Term Debt 2 $249.5 $34.2 $37.0 $ YTD 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 Strategy Pursues Business Patterns Established by the Petroleum Industry as a Business to Business Enterprise 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 5

7 Market Opportunity is Broad Liquefied Refinery Gases 4.1% Still Gas 4.3% Petroleum Coke 5.5% Output/Barrel of Oil Jet Fuel (Kerosene) 9.5% Other 9.4% Distillate Fuel Oil 29.1% Gasoline 45.0% Special Naphthas 0.59 Miscellaneous Products 0.98 Lubricants 1.96 Naphtha and other Oils for Petrochemical Feedstock Use 3.72 Off-Highway Vessel 2.09 Bunkering 1.77 Railroad 3.12 Farm 3.03 Residential billion gallons in 2012 Aviation Gasoline 0.20 Waxes 0.20 Oil Company 1.71 Other 0.60 Asphalt and Road Oil 4.31 Kerosene 0.20 Residual Fuel Oil 6.27 Commercial & Industrial 4.88 On-Highway Source: EIA and REG analysis Note: Output volume exceeds input volume due to production process billion gallons in 2012

8 Revenue ($) Indicative Product Revenue Growth Illustrative Time Biodiesel Renewable Diesel Chemicals Feedstock Biomass-based Diesel 7

9 Business Model Serves our Customers and Value Chain with Collaborative and Complementary Products, Services, Technologies & Capabilities 8

10 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 9

11 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 10

12 Biomass-based Diesel Update 11

13 (billions of gallons) (billions of gallons) Federal Regulatory Fundamentals Biodiesel is the highest volume commercially available, domestically produced Advanced Biofuel Commercially available drop-in fuel, compatible with existing diesel infrastructure RFS2 program strengthens demand and has strong support $0 direct outlay from U.S. government Federal support for the Ag industry Multi-feedstock, raw material flexibility Biomass-based diesel RINs are valid for compliance with the Advanced Biofuel and Renewable Fuel RVOs U.S. RFS2 Renewable Fuel Volume Requirements 1,3,4 U.S. RFS2 Advanced Biofuel Volume Requirements 1, PROPOSED Biomass-based diesel Advanced biofuels Cellulosic Biofuel D4 RINs Can Satisfy 3 RVO Categories 1, PROPOSED Biomass-based diesel Cellulosic Biofuel Advanced biofuels Total Renewable Fuel Source: 1 EPA Note: 2 Oval sizes not proportionate to volumes 3 Cellulosic Biofuel RVO is 0.1% of Total Renewable Fuel RVO in 2014 and not visible at this scale RVOs are proposed as of 11/29/ Renewable Fuel (D6) Corn ethanol Butanol Advanced Biofuel (D5) Sugarcane ethanol Biogas Biomass-based Diesel (D4) Biodiesel Renewable diesel Cellulosic Diesel (D7) Cellulosic Biofuel (D3) Cellulosic ethanol Renewable gasoline

14 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 13

15 Hub and Spoke Advanced Biofuel Business Model Headquarters provides centralized services to manufacturing and distribution facilities REG Mason City REG New Boston REG Newton Customers Terminals (Storage/Distribution) Illustrative REG Houston REG Geismar REG Ames (SG&A) REG Ralston (Manufacturing, Storage, Distribution) REG Seneca (Manufacturing, Storage, Distribution) Customers Terminals (Storage/Distribution) REG Danville REG Albert Lea 3 rd Party Plants (Manufacturing, Storage, Distribution) Customers Terminals (Storage/Distribution) Note: 1 Ralston, Seneca and 3 rd party are illustrative examples. All REG plants are able to manufacture, store and distribute products to terminals and customers. 14

16 $/gal (yield adjusted) Multi-Feedstock Capabilities Benefits of multi-feedstock capabilities Mitigates single feedstock price risk Allows use of lower-cost alternatives Provides optionality among various feedstock categories Feedstock Prices 5 83% Average $0.60 Per Gallon Advantage for 2013 Average $0.17 Per Gallon Advantage during Q REG Mix Animal Fat, Used Cooking Oil & Inedible Corn Oil 17% Soybean & Canola Oil Typical REG Feedstocks Inedible Corn Oil (Crude) Used Cooking Oil Choice White Grease Tech Tallow Soybean Oil (Crude) 4.5 RBD Palm Oil (delivered) Jan 2011 Apr Jul Oct Jan 2012 Apr Jul Oct Jan 2013 Apr Jul Oct Jan 2014 Apr Jul Source: The Jacobsen 15

17 Sales and Marketing Leadership REG-9000 Advertising REG-9000 Advantages Marketed based on fuel characteristics, not the type of feedstock Positioned as premium quality product Competitive Advantages Ability to produce from a wide range of lower cost raw materials enables pricing flexibility Reliability as an off-take customer for key suppliers of contract-manufactured fuel Ability to meet stringent customer specifications Preferred supplier to key customers and trading partners Note: REG-9000 is a trademark of REG 16

18 Broad Product & Co-Product Sales, Marketing and Logistics Capabilities Distribution Footprint at Plants, Terminals and to Customers 26 terminal locations (plus 10 plants) Delivered biodiesel and co-products to 43 states, 4 provinces in Canada and 1 state in Mexico in

19 Customer Delivery Points in 2013 Distributors/Customers Plants in production Terminals Note: REG delivered biodiesel and co-products to 43 states, 4 provinces in Canada and 1 state in Mexico in

20 Advanced Biofuel Growth Opportunities Expand, reinforce and grow organically Continue to consolidate the biodiesel industry Identify strategically located assets, i.e. proximity to feedstock or population centers Upgrade other sub-optimal plants by applying operational expertise to increase throughput Establish facilities capable of processing lower-cost feedstock Targeted areas for growth Biomass-based Diesel Plants (in production) Biomass-based Diesel Plants (partially constructed) Fermentation Plants Terminals Headquarters: Ames, IA Offices: Portsmouth, NH; South San Francisco, CA; Washington D.C. Significant consolidation and organic growth opportunities exist 19

21 REG Energy Services: Growing Blended Fuel Sales Regional headquarters in Portsmouth, New Hampshire Established to sell heating oil and ultra-low sulfur diesel at seven terminals throughout the northeast U.S. as well as BioHeat blended heating oil Complements our advanced biofuels business Enhances our ability to meet customer demand for biodiesel blended fuel 20

22 REG Energy Services Downstream distribution of blended fuels Sales of biodiesel blends from B2 to B100 as well as ULSD and heating oil 21

23 Competitive Differentiation Competitor Competitor Category Category Multi- Multi- Feedstock Capable 200 MGY >200 MGY Scale Scale National National Production Footprint National National Distribution Assets Reg-9000 REG-9000 Quality Quality Integrated Soy Processors Independent Multi- Feedstock, Raw Material Processors Independent Single Feedstock Processors or or Renewable Diesel Producers or 22

24 REG Life Sciences 23

25 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 24

26 Broad Technology Platform Provides Feedstock Flexibility and Product Optionality 25

27 Platform is Designed to be Simple, Efficient and Flexible Different biocatalysts Different Products Feedstock Flexibility Tested ability Both C5 and C6 Rich Biocatalyst Library Simple Same Production Fermentor Process Product UltraClean Flexibility Diesel Chemicals LS Diesel and Fuels: Fatty Ester LS Jet (FAME) Fatty Alcohol (C 12/14 ) Fatty Acids LS Alcohol C x Hydroxyacids LS Alcohol C y Ketones Aldehydes LS Alcohol C z Alkanes Branched LS Products Ester C x Amines Amides LS Ester C y 1 st generation feedstocks 2 nd generation feedstocks Decouples business from volatile commodity pricing Broadens geographical reach High Yield High Productivity Gateway to diverse products Product secretion Rich library of product specific catalysts Sugar Source (*sucrose, pentose (C5), hexose (C6), glycerin) One step conversion to immiscible product All chemical conversions in cell Standard fermentation equipment Simple efficient recovery Low operating costs Minimal switching costs LS Ester C z Robust portfolio of chemical families Structurally tailored for performance Drop in applications Novel Advantaged Products Flexible output can be tailored to maximize economic value New products build on platform and require fraction of development costs. 26

28 Commercial Target (%) Platform Accelerates Product Development and Increases Productivity of R&D Resources Product 4 FALC C16 Product 3 FALC C12 Product 2 FALC C12/14 Product 1 FAME Development Time (years) More products can be developed faster with fewer resources New products benefit from platform efficiency and require a fraction of time and resource to develop New pathways have recently started at over 75% of commercial target New products require only product selective pathway development: 3-12 months Source: REG 27

29 $/MT of product Specialty Chemicals are Under Development 5,000 4,000 Specialty Chemical Price Range 3,000 2,000 1,000 Commodity Spec Fatty Alcohol Price Range Biodiesel Price Range Source: REG 0 $0.10 $0.20 $0.30 $0.40 Net cost of sugar per lb 28 FALC FAME

30 REG Synthetic Fuels and REG Geismar 29

31 Background REG Synthetic Fuels Focused on renewable diesel and gas-to-liquids (GTL) technology innovation and development IP estate patents issued or pending (Fischer-Tropsch GTL technologies) REG Geismar Dynamic Fuels, LLC which includes a 75-million gallon per year nameplate capacity plant completed in 2010 REG acquired 50% of Dynamic Fuels from its acquisition of Syntroleum Corporation on June 3, 2014 Issued 3,493,613 shares of REG common stock to Syntroleum REG acquired remaining 50% of Dynamic Fuels from Tyson Foods, Inc. on June 6, 2014 Paid approximately $16.5 million of cash at closing Retired approximately $13.5 million of Dynamic Fuels debt to Tyson Foods $35 million in future payments contingent upon satisfaction of earn out conditions based on sales volume REG Geismar became obligor on $100 million in Gulf Opportunity Zone bonds that were issued through the Louisiana Public Facilities Authority in 2008 as part of the Dynamic Fuels biorefinery construction 30

32 Historical Overview of Syntroleum and Dynamic Fuels Syntroleum Corporation (now REG Synthetic Fuels) Syntroleum formed 1984, public in 1998 Headquarters in Tulsa, Oklahoma Key Assets & Capabilities: 50% ownership of Dynamic Fuels 3 rd generation Fischer-Tropsch technology (GTL, CTL) Intellectual property development (67 patents, 27 patent applications) Military grade fuels development (set military synthetic fuel std) Project development (Dynamic Fuels) Contract research & development Dynamic Fuels LLC (now REG Geismar) Dynamic Fuels was formed in 2007 Owned 50% by Syntroleum and 50% by Tyson Foods First large scale renewable diesel biorefinery in U.S. Located in Geismar, Louisiana 75-million gallon per year nameplate capacity plant completed in CONFIDENTIAL

33 Previous Dynamic Fuels Commercial Market Acceptance Product marketing strategy November 2011 EPA approval for neat sales allowed fleet customers direct use of diesel product Product marketing highlights KLM: first ever commercial flight on renewable jet fuel on June 29, 2011 Alaska Air: 75 flights US Navy: 450,000 gallons (100,000 jet fuel, 350,000 marine diesel) Norfolk Southern: breakthrough fleet client January 2012 CSX Railroad: April 2012 Enterprise Rent A Car airport shuttles Source: Syntroleum 32 CONFIDENTIAL

34 Financial Update 33

35 Operational Results 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) $107 $97 $148 $8 $8 400 Q1-Q2 200 $(12) YTD YTD Current Liabilities Long term liabilities Net Assets 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 long term liabilities 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 Q2

36 Strong Financial Position $ in millions 6/30/ /31/ /31/ /31/2011 Cash & Marketable Securities 1 $125.9 $153.2 $66.8 $33.6 Restricted Cash 1 $ Net Working Capital Total Assets $187.6 $249.3 $109.2 $90.2 $1,069.1 $740.9 $495.8 $484.4 Term Debt 1 $249.5 $34.2 $37.0 $81.6 Net Book Value $673.7 $594.1 $324.8 $120.6 Common Shares (millions) As of 6/30/14 Common Outstanding 42.3 RSU s, SAR, Options and Warrants 1.5 Fully Diluted Common 43.8 Note: 1 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. 35

37 $/gal Risk Management Committed to mitigating risk of price movements on raw materials and finished products Manage by matching orders, covering positions and risk management limits Work with risk management experts, which include the Risk Management Committee of the REG Board of Directors Risk Management Cross Functional Meetings Daily Daily Daily Daily Quarterly Sales/Supply Chain/Operations/ Risk Mgmt REG Procurement/Risk Mgmt/ Accounting REG Treasury/Sales/Risk Mgmt/ Supply Chain Supply Chain/Operations BOD Risk Mgmt Committee/REG NYMEX Heating Oil vs. CBOT Soyoil (typical management contracts) NYMEX Heating Oil CBOT soyoil $/lb $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Jan-09Apr-09 Jul-09 Oct-09 Jan-10Apr-10 Jul-10 Oct-10 Jan-11Apr-11 Jul-11 Oct-11 Jan-12Apr-12 Jul-12 Oct-12 Jan-13Apr-13 Jul-13 Oct-13 Jan-14Apr-14 Jul-14 Source: CME Group 36

38 Gallons sold (in thousands) $/gal Hedge Gain (Loss) Analysis Since 2010, average hedge expense of 1.7 cents/gal biodiesel sold 90,000 80,000 $0.33 $0.400 $ ,000 $ ,000 $0.14 $0.10 $ ,000 40,000 ($0.02) $0.05 $0.02 $0.04 ($0.02) $0.01 $0.04 Average $(0.017) ($0.03) ($0.01) $0.000 ($0.04) 30,000 ($0.13) ($0.15) ($0.14) ($0.100) 20,000 ($0.19) ($0.200) 10,000 ($0.29) ($0.300) - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q ($0.400) Gallons Sold Hedge gain/(loss) per gallon 37

39 Stock Information Symbol Exchange REGI NASDAQ 50 Day Avg Daily Volume (691,709 as of 8/8/14 per NASDAQ) Market Cap (8/8/14) Analyst Coverage $ million, $11.65 per share Canaccord Genuity: John Quealy Piper Jaffray: Michael Cox Sidoti & Company: Katja Jancic Wedbush: Craig Irwin 38

40 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 39

41 Contact Information (NASDAQ: REGI) 416 S. Bell Ave. PO Box 888 Ames, IA Toll Free: (888) REG-8686 Phone: (515) Todd Robinson Director, Investor Relations (515) ICR, LLC Gary Dvorchak, CFA Senior Vice President (310)

42 Appendix 41

43 Existing Debt and Subsidiary Structure $ convertible 2 REG Construction & Technology Group, LLC REG Services Group, LLC REG Marketing & Logistics Group, LLC REG Ventures, LLC $ 40.0 LOC (Services & M&L co-borrowers) REG Biofuels, LLC REG Energy Services, LLC REG Synthetic Fuels, LLC REG Life Sciences, LLC REG Chemicals, LLC REG Feedstock, LLC REG Albert Lea, LLC REG Mason City, LLC $ 4.9 term REG Okeechobee, LLC REG Atlanta, LLC REG New Boston, LLC REG Geismar, LLC $ GO Zone bonds REG Clovis, LLC REG New Orleans, LLC $ 3.5 term REG Danville, LLC REG Newton, LLC $ 16.9 term REG Emporia, LLC REG Ralston, LLC $ 1.0 term REG Houston, LLC REG Seneca, LLC Note: 1 Term debt principal balances as of June 30, Convertible fair value amount was $119.1 million at June 30,

44 Convertible Debt and Capped Call $ Million Convertible Senior Notes Offering Plus Capped Call Base Convertible 5 Year 2.57% up 32.5% Convertible 2.75% up 32.5% Convert + up 60% Capped Call Offering Size 1 $143.75mm $143.75mm Maturity 5 years 5 years Final Coupon 2.75% 2.75% Final Conversion Premium 32.5% 32.5% Conversion Price 2 $13.26 $13.26 Shares Underlying Convertible With Greenshoe mm mm Capped Call Net Pre-Tax Cost Shares Underlying Capped Call 3 ($11.9mm) mm Net Proceeds $143.75mm $131.85mm Economic Yield (Assumes 0% Tax Rate) 2.75% 4.62% Effective Conversion Price %/$ %/$16.02 Note: 1 Reflects $125mm base deal size + exercise of 15% overallotment option 2 Based on closing REGI stock price on 5/29/14 of $ Capped call on ~92.5% of shares underlying convertible 43

45 States with Notable Biodiesel Policies New York City LEGEND Low Carbon Fuels Standard Mandate - Fuel use or Bioheat Tax Incentive - sales Tax Incentive - production Fleet Requirement Bioheat Mandate passed Awaiting Surrounding States No major policy Note: Current as of 3/13/2014 Source: DOE Alternative Fuels Data Center and Individual State Statues 44

46 REG Fuel Products Line-up REG Marketing & Logistics REG Energy Services Products Offered REG-9000/1 Biodiesel REG-9000/5 Biodiesel REG-9000/10 Biodiesel Advanced biofuel produced from multi-feedstocks 1.5 RINs REG-9000/RD Renewable Diesel 100% hydrocarbon advanced biofuel produced from multi-feedstocks 1.7 RINs Renewable Naphtha 100% hyrocarbon renewable gasoline blendstock Co-product from the production of renewable diesel Derived from fats and oils Renewable LPG Clean-burning, renewable liquefied petroleum Derived from fats and oils Does not meet pipeline spec for LPG Diesel Fuels Available clear and dyed 15 ppm or less Blended Fuel Ultra-low sulfur diesel blended with REG-9000 biodiesel or REG- 9000/RD Fuel optionality with competitive pricing, deepwater access, and delivery economics Heating Oil Options High sulfur heating oil and low sulfur heating oil Bioheat Fuel Oil Heating oil blended with REG-9000 biodiesel Markets Local/national distillate markets Local/national distillate markets Used as a renewable gasoline blendstock Fractionated to produce propane, butane, and ethane Highway and non-highway Residential heating oil in Northeastern U.S. Specifications More stringent standards than ASTM D6751 Meets ASTM- D975 Summer and winter spec available State regulated specifications More stringent standards than ASTM D

47 Other REG Products REG Marketing & Logistics Products Offered REG Glycerin-98 REG Glycerin-80 Versatile renewable carbon source Multi-feedstock biodiesel source Fatty Acid Distillate Used as a feedstock for biodiesel production High energy content Distillation Bottoms Heavy material coproduct of biodiesel distillation process Markets Refined glycerol market Soaps Animal feed market Biodiesel producers Can be used as a feed blendstock Power generation utilities Burners and energy users Feed blendstocks 46

48 Competitor Landscape Integrated Soy Producers Archer Daniels Midland Cargill Louis Dreyfus Independent FutureFuel Other Stand-alone Renewable Diesel Diamond Green (Valero/Darling) Neste Oil NBB-member Production Plants (as of 11/13) 1 Note: 1 NBB 47

49 RVO Renewable Volume Obligation Amount of renewable fuels required to be blended each year Obligated parties can accumulate up to 20% of next year s RINs in current year Cellulosic Biofuel Biomassbased Diesel Total Advanced Biofuels Maximum Corn Ethanol 1 Total Renewable Fuel D Codes 7, 3 4, 7 3, 4, 5, 7 6 3, 4, 5, 6, (billions of gallons) Note: 1. Maximum corn ethanol is not a separate RVO category, but D6 RINs from ethanol and other D6 generating fuels such as butanol, can only be used to satisfy the non-advanced Biofuel portion of the Total Renewable Fuel category RVOs are proposed as of 11/29/2013. Source: EPA 48

50 Fuel Pathways for Generating RINs Fuel Type Feedstock D-Code Ethanol Cellulosic Biomass from crop residue, slash, pre-commercial thinnings and tree residue, annual covercrops, switchgrass, miscanthus and energy cane; cellulosic components of separated yard waste; cellulosic components of separated food waste; and cellulosic components of separated MSW 3 Cellulosic Biomass from crop residue, slash, pre-commercial thinnings, tree residue, annual Renewable gasoline and renewable gasoline cover crops; cellulosic components of separated yard waste; cellulosic components of blendstock separated food waste; and cellulosic components of separated MSW 3 Naphtha Cellulosic biomass from switchgrass, miscanthus, and energy cane 3 Excludes all processes that co-process renewable biomass with petroleum: Soy bean oil; Oil Biodiesel, renewable diesel, jet fuel and from annual covercrops; Algal oil; Biogenic waste oils/fats/greases; Non-food grade corn oil; heating oil Camelina sativa oil 4 Biodiesel, heating oil Canola/Rapeseed oil 4 Biodiesel, renewable diesel, jet fuel and heating oil Includes only processes that co-process renewable biomass with petroleum: Soy bean oil; Oil from annual covercrops; Algal oil; Biogenic waste oils/fats/greases; Non-food grade corn oil; Camelina sativa oil Naphtha, LPG Camelina sativa oil 5 Ethanol Sugarcane, Grain Sorghum processed using renewable energy 5 Ethanol, renewable diesel, jet fuel, heating oil and naphtha The non-cellulosic portions of separated food waste 5 Biogas Landfills, sewage waste treatment plants, manure digesters 5 Ethanol Corn starch; Starches from crop residue and annual covercrops; Grain Sorghum 6 Butanol Corn starch 6 Cellulosic diesel, jet fuel and heating oil Cellulosic Biomass from crop residue, slash, pre-commercial thinnings and tree residue, annual covercrops, switchgrass, miscanthus and energy cane; cellulosic components of separated yard waste; cellulosic components of separated food waste; and cellulosic components of separated MSW 7 5 Source: RFS, June 7,

51 Valero Exxon Mobil Phillips 66 Marathon Petroleum BP Chevron Koch Industries Citgo Motiva Enterprises Tesoro Million Barrels/Day RINs / Obligated Parties RIN Renewable Identification Number Tracking system to measure RFS2 compliance Each qualifying gallon of renewable fuel has its own unique RIN Every gallon of B100 produced generates 1.5 D4 RINs Obligated parties meet their EPA-regulated volume obligation by accumulating RINs RINs are detachable and trade actively among producers, obligated parties, and traders RIN prices are an economic mechanism to balance supply and demand U.S. Refinery Production Capacity (3/13) 1 Obligated Parties - Examples Source: 1 EIA 50

52 1/3/2012 2/3/2012 3/3/2012 4/3/2012 5/3/2012 6/3/2012 7/3/2012 8/3/2012 9/3/ /3/ /3/ /3/2012 1/3/2013 2/3/2013 3/3/2013 4/3/2013 5/3/2013 6/3/2013 7/3/2013 8/3/2013 9/3/ /3/ /3/ /3/2013 1/3/2014 2/3/2014 3/3/2014 4/3/2014 5/3/2014 6/3/2014 7/3/2014 $2.00 Historical RIN Prices $1.50 $1.00 $0.50 $0.00 D4 Biomass-based Diesel D5 Advanced Biofuel D6 Other Renewable Fuel Source: REG, OPIS 51

53 Adjusted EBITDA Reconciliation - Annual ($mm) Net Income (Loss) (68.80) (21.60) (Income) Loss from Equity Investments (0.44) - - Income Tax (Benefit) Expense (3.20) Impairments of Investments Interest Expense Other Income (3.20) (1.20) (0.93) (0.17) (0.38) Change in fair value of Seneca Holdco liability (0.35) - Change in Fair Value of Interest Rate Swap (0.30) (0.50) - Change in fair value of preferred stock conversion feature embedded derivatives (7.94) (11.97) - Stock issued for glycerin termination Straight-line lease expense (0.29) (0.65) Depreciation Amortization 1.00 (0.60) (0.45) (0.75) (0.75) Impairments on Assets Non-recurring business interruption (0.86) Non-cash Stock Compensation Adjusted EBITDA before 2012 BTC (12.40) Retroactive BTC (57.75) Adjusted EBITDA 1 (12.40) Note: 1 Adjusted EBITDA is a Non-GAAP financial measure that REG defines as net income adjusted for net interest expense, income taxes, depreciation and amortization, and further adjusted for other items, that REG does not believe are indicative of its core operating performance, including (Income) Loss from equity investments, impairments on assets/and of investments, other income, non-cash stock compensation, change in fair value of Seneca Holdco liability, change in fair value of interest rate swaps and change in fair value of preferred stock conversion feature embedded derivatives and straight line lease expense. 2 On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which reinstated a set of tax extender items including the reinstatement of the federal biodiesel blenders tax credit for 2013 and retroactively reinstated the credit for The retroactive credit for 2012 resulted in a net benefit to us that was recognized in first quarter 2013, but because this credit relates to the operating performance and results of 2012 it is excluded from 2013 adjusted EBITDA and allocated to the 2012 periods based upon gallons sold. 52

54 Adjusted EBITDA Reconciliation ($mm) 1Q 13 2Q 13 3Q 13 4Q Q 14 2Q 14 Net Income (Loss) (2.36) Income Tax (Benefit) Expense (42.05) (0.11) (11.92) Interest Expense Other Income (0.11) (0.10) (0.07) (0.11) (0.38) (0.05) (0.38) Change in fair value of contingent liability (0.38) Straight-line lease expense (0.16) (0.16) (0.16) (0.16) (0.65) (0.16) (0.15) Depreciation Amortization (0.20) (0.19) (0.18) (0.18) (0.75) (0.18) (0.18) Lease cancellation Non-recurring business interruption 2 (0.86) (0.86) - - Non-cash Stock Compensation Adjusted EBITDA before 2012 BTC Retroactive BTC 3 (57.37) (0.37) - - (57.75) - - Adjusted EBITDA Note: 1 Adjusted EBITDA is a Non-GAAP financial measure that REG defines as net income adjusted for net interest expense, income taxes, depreciation and amortization, and further adjusted for other items, that REG does not believe are indicative of its core operating performance, including (Income) Loss from equity investments, impairments on assets/and of investments, other income, non-cash stock compensation, change in fair value of Seneca Holdco liability, change in fair value of interest rate swaps and change in fair value of preferred stock conversion feature embedded derivatives and straight line lease expense. 2 We incurred a non-recurring business interruption charge at one of our production facilities in November 2012; we reflected the gain contingency in our operating performance of 2012 having received the corresponding insurance proceeds in February 2013, thus excluding it from first quarter 2013 adjusted EBITDA. 3 On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which reinstated a set of tax extender items including the reinstatement of the federal biodiesel blenders tax credit for 2013 and retroactively reinstated the credit for The retroactive credit for 2012 resulted in a net benefit to us that was recognized in first quarter 2013, but because this credit relates to the operating performance and results of 2012 it is excluded from 2013 adjusted EBITDA and allocated to the 2012 periods based upon gallons sold. 53

55 Experienced, Stable Management Team Daniel J. Oh President & Chief Executive Officer Eric Bowen Vice President, Corporate Business Development & Legal Affairs Chad Stone Chief Financial Officer Anthony Hulen Executive Director, Corporate Affairs Brad Albin Vice President, Manufacturing Natalie Merrill Executive Director, Corporate Finance & Investment Banking and Corporate Secretary David Elsenbast Vice President, Supply Chain Management Chad Baker Controller, Chief Accounting Officer Gary Haer Vice President, Sales & Marketing Jonathon Schwebach Treasurer Biographies available at 54