Analyst Briefing. FGV Green Energy Sdn Bhd ACQUISITION OF M2 BIODIESEL PLANT IN KUANTAN

Transcription

1 Analyst Briefing FGV Green Energy Sdn Bhd ACQUISITION OF M2 BIODIESEL PLANT IN KUANTAN 5 September 2014

2 Disclaimer These materials have been prepared by Felda Global Ventures Holdings Berhad ( FGVH or the Company ) solely for informational purposes, and are strictly confidential and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, participants agree not to remove this document from the conference room where such documents are provided without express written consent from the Company. Participants agree further not to photograph, copy or otherwise reproduce these materials at any point of time during the presentation or while in your possession. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. Any failure to comply with these restrictions may result in a violation of applicable laws and commencement of legal proceedings against you. It is not the Company s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company s financial position or prospects. The information contained in these materials has not been independently verified and is subject to verification, completion and change without notice. The information contained in these materials is current as of the date hereof and are subject to change without notice, and its accuracy is not guaranteed. The Company is not under any obligation to update or keep current the information contained in these materials subsequent to the date hereof. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its directors and affiliates or any other person, as to, and no reliance should be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of, or any errors or omissions in, the information contained in these materials. Neither the Company, its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection therewith. These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials may also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of the Company, and the forecast financial performance of the Company is not guaranteed. No reliance should be placed on these forward-looking statements, if any. 2

3 Program Overview of Acquisition of M2 Biodiesel Plant by En Wira Adam VP/CEO FGV Biotechnologies Sdn Bhd Q&A Session Program ends. 3

4 Introduction COMPANY BRIEF ABOUT TARGET ASSET Company Brief Acquisition of Mission Biofuels Sdn Bhd ( M2 Biodiesel Plant) Company Roles & responsibilities ASSET OWNER LOCATION CAPACITY Mission Biofuels Sdn Bhd Adjacent to existing FGVB biodiesel plant 250,000 tpa (Biodiesel) FGV GREEN ENERGY SDN BHD (FGVGE) Formerly known as Laras Simfoni Sdn Bhd FGVD Benefuel LLC Supply feedstock and operate plant Supply new solid catalyst Retrofitting existing plant with Benefuel technology TECHNOLOGY FACILITIES LAND SIZE AXENS, France 2 nd generation trans-esterification technology (using Solid Catalyst) Storage 22,800mt Near deep water jetty with support pipelines 5.9 acres Investment cost M2 CAPITAL FGVD in FGVGE Asset Owner & assist retrofitting work USD22.5 FEEDSTOCK PRODUCTS CPO BIODIESEL HIGH GRADE (250,000 tpa) Glycerine (technical grade : 97.5% 25,000 tpa) Equity FGVD 60% Benefuel LLC 20% M2 CAPITAL 20% STATUS Commission partially in 2010, no final acceptance and handover No commercial run

5 JV Company profile (BENEFUEL LLC). Benefuel LLC. is a biofuel technology and production company that can produce biodiesel at substantially lower costs than conventional methods by using lower cost feedstocks and converting them efficiently into biodiesel and glycerin. Benefuel has developed the patented ENSEL process technology which combines esterification and transesterification into a single step, streamlining the biodiesel conversion process, lowering operating costs and substantially reducing yield loss. The primary differentiator between Benefuel s ENSEL technology and existing biodiesel facilities is that the ENSEL process utilizes a proprietary solid catalyst that combines esterification of free fatty acids and transesterification of triglycerides into a single process step: a long-standing goal of the biodiesel and oleo-chemical industries. Main Shareholders Suncor Energy USA Inc. Flint Hills Resources Renewables LLC ITOCHU Corporation 5

6 JV Company profile (M2 Capital Sdn Bhd). M2 Capital incorporated in August 2014, it s a 100% subsidiary of MNE (Mission New Energy Limited) Australia. The owner of the M2 biodiesel plant in Kuantan Port. 6

7 Transaction Structure ROLES & RESPONSIBILITIES 1. Manage & Operate the plant 2. Procure Feed stock 1. Asset Owner M2 Biodiesel Plant 1. Supply Benefuel Ensel Catalyst 2. Benefuel Technology Provider EQUITY FGVD M2 CAPITAL BF LLC Each JVCO Parties Responsibility FGV Green Energy Buying the ENSEL catalyst Buying the target asset as is where is Retrofitting the plant for Benefuel Technology Refurbishment work to put back plant on operations Commissioning the plant 7

8 M2 Axens Plant Kuantan DISTILLATION PLANT PRE-TREATMENT PLANT TRANS ESTERIFICATION PLANT BOILER HOUSE PLANT 8

9 Benefuel Technology RETROFITTING EXISTING AXENS PLANT WITH BENEFUEL TECHNOLOGY PFAD or High Acid Oils BENEFUEL Solid Catalyst RETROFITTING AXENS PLANT WITH BENEFUEL TECHNOLOGY TO CATER FOR PFAD FEEDSTOCK OR OTHER HIGH ACID CONTENT VEGETABLE OIL Design Concept Was Integrated With FGVB plant, Share Of Loading Bay, Lab, Weighbridge, Admin Office And Plant Entrance. Pilot plant (In Japan Owned By Daiki & Itochu & Benefuel) 1 month test period result on Pfad Was Good Production Of PFMA met The Specification EN and ASTM. 3 reputable companies (Flint Hill Resources, Benefuel & Itochu ) are now involved in a similar project in Beatrice plant, Nebraska. The advantages of ENSEL process technology(benefuel TECHNOLOGY): Low operating cost A simplified operation eliminate glycerin purification, fuel washing and caustic neutralization Yield guaranteed of 98% vs 95.5% (normal) 97.5% pure high quality technical grade glycerine (without purification) 9

10 Key advantages 1 Revenue Growth for FGV Group 2 Increase in Bio-Diesel Production Capacity M 2 6 % M 2 350,000MT BASE EXPECTED REVENUE 100,000MT M 1 FGV FUTURE CAPACITY 250,000MT 3 Low Production Cost 4 Secured Off-taker 5 Financial Returns Use PFAD as feedstock PFAD is 30% cheaper than CPO PFAD feedstock without pretreatment cost Overall lower production cost compared to our existing M 1 plant Flint Hill Resources, Godiver & Itochu will off take all bio-diesel produced by M2 plant. Bio-diesel will be marketed predominantly in the US & EU 2013 USA consumed 4.6 Mil ton, expected Mil ton. Scaling down using food based (Crop) high price for food, advantages for PFAD Payback period of 4 years IRR > 15% 10

11 Thank You 11

12 Contact Us For further information, please contact: Felda Global Ventures Holdings Bhd Level 6, Balai FELDA Jalan Gurney Kuala Lumpur MALAYSIA Telephone : Fax : Investor Relations contact person: Ms Zaida Alia Shaari (zaida.s@feldaglobal.com) 12