Business Update May 17, 2017
Safe Harbor Statement This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including the potential benefits of the use of feedstocks and biomass-based diesel as a source of energy, the competitive advantages resulting from our technologies, our financial position, the capabilities of our facilities and our Life Sciences business unit, anticipated product development and sale dates and our potential strategic business initiatives, growth opportunities and trade flows. These forward-looking statements are based on current expectations and assumptions, are subject to change, and actual results may differ materially. Factors that could cause actual results to differ materially include changes in governmental programs and policies requiring or encouraging the use of biofuels; changes in the spread between biomass-based diesel 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 biomass-based diesel production; risks associated with fire or explosion at our facilities; the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market; competition in the markets in which we operate; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; and other risks and uncertainties described from time to time in REG s annual report on Form 10-K for the year ended December 31, 2016, quarterly reports on Form 10-Q and other periodic filings with the Securities and Exchange Commission. All 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. 2
REG enables a cleaner world through lower carbon intensity products and services 3
REG s main source of revenue is Biomass-Based Diesel, a superb, lower carbon intensity liquid transportation fuel 4
Biomass-Based Diesel and REG High Quality and Value REG Advertising REG s Competitive Advantage 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 5 partners REG 9000 Biodiesel Marketed based on fuel characteristics, not the type of feedstock Positioned as premium quality product REG 9000 Distilled Biodiesel Eliminates the need to switch to a lower cloud point biodiesel during winter months Is easy to blend with petroleum, since there are fewer minor components REG 9000 RHD 100% hydrocarbon product Used in any diesel engine without modification
Growing Global Distillate Market Means Biomass-Based Diesel is Needed to Fulfill Growing Demand Billions of Gallons 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 800 Historic Demand Expected Demand 700 600 500 400 300 200 100 0 The global distillate fuel market has grown at a 3.8% annualized rate between 1984 and 2016, going from 137 billion gallons to 472 billion gallons over the period. Annual growth is expected to be 3.3% annually until 2030, resulting in expected global distillate demand of over 743 billion gallons. This growth creates an opportunity for REG products, which are low carbon substitutes for petroleum-based distillate products. For the World, 3% per year annual growth equals new sales opportunities for diesel of >12 billion gallons Source: LMC International, EIA 6
REG s impact for our investors and our environment is meaningful 7
REG Performance in 2016 $2.0 billion in revenue PHYSICAL PRODUCTS LOWER CARBON INTENSITY 567 million gallons of fuel 4.0 million tons of carbon reduction $102 million of adjusted EBITDA Source: REG Internal Analysis 8
Gallons Sold Biomass-based diesel sales over the last decade 500,000,000 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: REG gallons produced and marketed 9
Gallons of ULSD REG Total Greenhouse Gas Savings (GHG) Over Time (in ULSD gallons) 300,000,000 REG GHG Reduction 250,000,000 200,000,000 More than one billion gallons displaced since 2010 150,000,000 100,000,000 50,000,000-2010 2011 2012 2013 2014 2015 2016 REG is the largest producer of biomass-based diesel in the U.S. Source: REG Internal Analysis 10
Over $100 million in EBITDA averaged annually over the past five years Gallons Sold Annual Historical (mm gal) Adjusted EBITDA Annual Historical ($mm) 1 567 375 513 259 287 345 188 259 283 188 30 54 4 2012 2013 2014 2015 2016 Biofuels Volume Petroleum Volume Revenue Annual Historical ($mm) $148 $97 $108 $102 $50 2012 2013 2014 2015 2016 Net Book Value Year end Historical ($mm) $1,015 $1,498 $1,274 $1,387 $2,041 $325 $594 $779 2 $614 $610 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Note: 1 See Appendix (Slide 76) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP 2 Decline in net book value primarily due to nonrecurring, non-cash write-off of goodwill Source: REG Internal Analysis 11
Value Delivered to Shareholders Net Book Value per share Year end Historical ($mm) Period # of Shares Repurchased Value 22 Repurchased 2Average Price $16.27 $17.53 1 $14.01 $15.83 $9.46 2012 2013 2014 2015 2016 February 2015 Share Repurchase Program Q1 2015 525,281 $5,000,000 $9.52 Q2 2015 668,376 6,518,966 $9.75 Q3 2015 837,065 7,793,620 $9.31 Q4 2015 448,391 3,999,994 $8.92 Q1 2016 647,794 5,816,648 $8.98 Q2 2016 90,654 870,768 $9.61 Total 3,217,561 $29,999,997 $9.32 March 2016 Share Repurchase Program Q2 2016 4,442,823 $38,699,407 $8.71 Q3 2016 627,552 5,589,988 $8.91 Total 5,070,375 $44,289,395 $8.73 Repurchased shares at good investment values Redeemed bonds at a discount Total Share Repurchase Programs Total 8,287,936 $74,289,392 $8.96 Period Principal Amount Value 2 Repurchased Discounted Value March 2016 Convertible Debt Repurchase Program 2 2 Q2 2016 $63,912,000 $60,898,613 95.29% Q3 2016 6,000,000 5,583,991 93.07% Total $69,912,000 $66,482,604 95.09% Note: Values of shares or convertible debt repurchased include fees and commissions Source: Company Data Source: Company Data Note 1 Decline in net book value primarily due to nonrecurring, non-cash write-off of goodwill 2 Value of shares or convertible debt repurchase includes fees and commissions 12
Value extends far beyond Decarbonization Revitalization Benefiting Cities & Rural Areas Energy Security Long-Term Availability Environmental Stewardship Cleaner, Lower Carbon Intensity Jobs & Economic Development New Investment Energy Diversity Renewable Alternatives Food Security Food THEN Fuel 13
Value A Specialized Feedstock Value Chain REG creates valuable advanced biofuel from waste and by-products directly supporting agriculture and food security, while delivering cleaner, lower carbon intensity products and services 72% Of REG s feedstock mix for 2016 comprised Animal Fat, Used Cooking Oil & Inedible Corn Oil Valuable Agricultural Products Secondary Outlet Markets Agricultural Co-Products Waste & By-Products With REG Feedstocks often gain value when producing biodiesel Food THEN Fuel Without REG Fewer choices for disposal of waste feedstocks Source: REG Internal Analysis 14
Lower Carbon Intensity & Cleaner Products Delivered Through Existing Infrastructure and channels Business to Business Sales Model Advanced Biofuels > 50% fewer CO 2 emissions Waste & Byproduct Feedstocks Refining Distribution Lipids (Oils & Fats) Crude Oil Extraction (sequestered carbon) Crude Oil Petroleum Refining Distribution Higher CO 2 emissions Source: REG Internal Analysis 15
REG s Technologies are Highly Integrated, Agile, and Supportive of Earnings Power and Growth Triglycerides Fatty Acids Lipids Fatty Acids Chemicals Fatty Esters Fatty Alcohols Glycerol Fuel Methyl Esters Glucose Hydrocarbons Sugars Xylose Lubricants Esters Hydrocarbons Sucrose 16
Growth Tactics & Strategies Support Financial Returns as well as Societal Benefits Optimize and grow our fully-integrated biomass-based diesel offering across North America Acquisitions Grow our fully-integrated biomass-based diesel offerings internationally Expand further in the production of advanced biofuels and renewable chemicals Organic and with partners Investments Diversify into environmental services, lubricants and specialty products Joint Ventures 17
Technology, Organic Growth, Upgrades and M&A are Value Creation Engines Nameplate Biomass-based Diesel Production Capacity Growth (MMGY) 332 182 212 227 257 1 12 47 432 452 502 670 1 1995 2002 2008 2010 2011 2012 2013 2014 2015 2016 2017 Future Advanced Biofuels Houston - Newton Danville - Seneca - Clovis Biodiesel, LLC Albert Lea - New Boston Atlanta - Ultra Green Energy Services - Mason City- Geismar - Grays Harbor - Madison - Petrotec AG - 2 Ralston New Orleans Emporia Clovis Atlanta American BDF, LLC Renewable Chemicals Life Sciences - Synthetic Fuels - Note: 1 Assumes completion of construction of New Orleans, Emporia, Clovis and Atlanta facilities at currently planned nameplate capacity and planned expansion of the Ralston facility. Timing of construction will depend on availability of financing and other factors. 2 In January 2017, REG acquired remaining minority interest to have 100% control of Petrotec. 18
Fully Integrated Business Overview Research & Development Construction & Technology Procurement & Multifeedstock Expertise Advanced technology and strong IP to protect it Proven track record of building, operating and upgrading world-class biomass-based facilities Diverse product mix with the potential to target dozens of growing markets Effective risk management strategy that enables consistent returns across varying market conditions Production International Sales & Marketing Risk Management Distribution & Logistics Customer Service & Administration Source: REG Internal Analysis Sophisticated procurement and technology capabilities enable a diverse feedstock mix International nameplate production capacity exceeding 500 million gallons 19 International footprint allows delivery of products around the world Built to serve the growing needs of customers with high quality assurance Profitably procures and transforms lower cost, waste-based feedstocks from around the globe into valuable products that meet strict standards for quality and lower carbon intensity.
Research & Development Research & Development Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics REG has deep roots in developing new technologies and processes spanning multiple industries Inter-disciplinary capabilities across oleochemical, petrochemical and biotech platforms Over 600 active and pending patents across biomass-based diesel, renewable hydrocarbon diesel and renewable chemical domains Integrated technology commercialization capabilities give REG a competitive advantage Customer Service & Administration Source: REG Internal Analysis 20
Construction & Technology Research & Development Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics REG s extensive expertise in building and operating a wide array of advanced biofuel facilities continues to be a driving force in our growth Completed dozens of projects with total value in excess of $200M Expertise in Engineering and Construction Materials Project Engineering and Construction Management Manufacturing Facilities Design and Layout Manufacturing Process Engineering and Design Services Plant modifications Plant maintenance Process systems Manufacturing Operations Management Customer Service & Administration Source: REG Internal Analysis 21
$/gal (yield adjusted) Procurement & Multi-Feedstock Expertise Research & Development Construction & Technology Procurement & Multifeedstock Expertise Production Feedstock Flexibility Mitigates single feedstock price risk Allows pursuit of lower-cost alternatives Improves supply assurance across feedstock categories Enables wider usage of crude and waste raw materials Feedstock Prices $4.90 Average $0.25 per gallon advantage for 2016 72% 2016 REG Mix Typical REG Feedstocks Average$0.37 per gallon advantage for 1Q 2017 Animal Fat, Used Cooking Oil & Inedible Corn Oil 28% Soybean & Canola Oil Inedible Corn Oil (Crude Used Cooking Oil Choice White Grease Tech Tallow Soybean Oil (Crude) RBD Palm Oil (Delivered International Sales & Marketing Risk Management $4.40 $3.90 $3.40 $2.90 $2.40 Distribution & Logistics Customer Service & Administration Source: REG Internal Analysis $1.90 $1.40 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr 2012 2013 2014 2015 2016 2017 Source: The Jacobsen 22
Production Research & Development Albert Lea, MN Danville, IL Crude Feedstock Capable Emden, Germany Geismar, LA Madison, WI Construction & Technology Procurement & Multifeedstock Expertise Mason City, IA New Boston, TX Newton, IA Oeding, Germany Seneca, IL Production International Sales & Marketing Refined Feedstock Fermentation Facility Grays Harbor, WA Houston, TX Ralston, IA Okeechobee, FL Feedstock Processing Facility Burlo, Germany Risk Management Partially Completed or Repairs Required: Atlanta, GA Clovis, NM Emporia, KS New Orleans, LA Distribution & Logistics Customer Service & Administration Source: REG Internal Analysis 13 Biomass- Based Diesel Plants 23 502 MMGY NAMEPLATE CAPACITY
International Sales & Marketing Research & Development Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics Main Fuel Products Co-Products Bio-based Products 1 REG 9000 Biodiesel Glycerin Flavors & Fragrances REG 9000 Distilled Biodiesel REG 9000 RHD Renewable Hydrocarbon Diesel Renewable Naphtha Renewable LPG Verdesoil TM Blended Fuel Heavy Esters Nutrition Bioheat Blended Fuel ULSD Heating Oil Renewable Chemicals Plastics Personal Care Paints & Coatings Home & Industrial Cleaning Participation across different regions with several products enables opportunity Customer Service & Administration Source: REG Internal Analysis 1 Estimated product categories based upon technology platform potential 24
Risk Management Research & Development REG s risk management policy works to minimize volatility from feedstock costs and fuel prices across varying market conditions Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics Customer Service & Administration Source: REG Internal Analysis 25
Distribution & Logistics Research & Development REG s growing sales and supply chain capabilities allow us to serve customers in over 20 countries around the world Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics Customer Service & Administration Source: REG Internal Analysis Fuel Sales 26
Customer Service Research & Development Construction & Technology Procurement & Multifeedstock Expertise Production International Sales & Marketing Risk Management Distribution & Logistics REG is focused on product support and services while providing excellent service to customers and vendors Supply Chain Management ensures supply assurance and timely fulfillment Credit offers customers financial flexibility and the ability to quickly procure product Sales personnel focus on providing flexible and competitive solutions to meet customers needs Transportation offers several methods of distribution to maximize the value of delivered product Operation Services provides personalized support throughout contract fulfillment Quality Assurance strives to ensure that customers receive products and services as contracted REG Access TM Portal provides direct access to transactional information Customer Service & Administration Source: REG Internal Analysis 27
Financial Information 28
Biodiesel Value Components (per gallon) Without state incentives With state incentive (CA example) RIN $1.45 36% BTC $1.00 25% ULSD $1.54 39% RIN $1.45 30% LCFS $0.78 17% BTC $1.00 21% ULSD $1.54 32% Source: OPIS Averages for March 2017 29
Biodiesel Pricing & COGS Per Gallon $4.50 Averages for March 2017 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- $1.00 $1.45 $1.54 Reported Value Without State and Local Incentives Note: 1 Illustrative Midwest multiple feedstock plant running on lower cost feedstock 30 $2.94 Jacobsen B100 Upper Midwest $1.12 $0.71 $2.15 Costs ULSD - NYMEX RIN Value - OPIS BTC B100 - Jacobsen Feedstock Operating Costs Margin Potential 1
Over $100 million in EBITDA averaged annually over the past five years Gallons Sold Annual Historical (mm gal) Adjusted EBITDA Annual Historical ($mm) 1 567 375 513 259 287 345 188 259 283 188 30 54 4 2012 2013 2014 2015 2016 Biofuels Volume Petroleum Volume Revenue Annual Historical ($mm) $148 $97 $108 $102 $50 2012 2013 2014 2015 2016 Net Book Value Year end Historical ($mm) $1,015 $1,498 $1,274 $1,387 $2,041 $325 $594 $779 2 $614 $610 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Note: 1 See Appendix (Slide 76) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP 2 Decline in net book value primarily due to nonrecurring, non-cash write-off of goodwill Source: REG Internal Analysis 31
Quarterly Financial Update 3/31/2017 Gallons Sold Quarterly Historical (mm gal) Adjusted EBITDA Quarterly Historical ($mm) 1 164 150 156 120 153 122 96 99 97 140 135 112 101 60 92 85 85 56 20 22 4 4 8 14 12 10 11 $(14) $26 $17 $22 $2 $8 $32 $60 $1 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Biofuels Volume 1Q 2016 2Q 2016 3Q 2016 Petroleum Volume 4Q 2016 1Q 2017 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Revenue Quarterly Historical ($mm) Net Book Value Quarterly end Historical ($mm) $231 $374 $395 $388 $298 $558 $625 $560 $419 $728 $721 $713 $614 $617 $578 $591 $610 $593 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 (1) 2015 EBITDA is adjusted for retroactive BTC; See Appendix (Slide 77) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP 32 Source: REG Internal Analysis
REG Performance over the last decade GALLONS SOLD 1 50 567 30.9% CAGR 2007 2016 $2,041 REVENUE 1 $235 27.2% CAGR 2007 2016 ADJUSTED NET INCOME 1 $34 2 $61 3 6.8% CAGR 2007 2016 ADJUSTED EBITDA 1 $1 $102 67.2% CAGR Note: (1) REG financial results for 2016 and 2007 in million & REG Analysis (2) Net income excluding impairment of $1.78 million (3) Net income excluding asset impairment of $18 million 2007 2016 34
Strong Financial Position $ in millions 3/31/2017 12/31/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Cash & Marketable Securities Net Working Capital $82.2 $116.2 $47.1 $80.3 $153.2 $66.8 $200.3 $229.3 $181.6 $243.1 $249.3 $109.2 Total Assets $1,041.1 $1,136.6 $1,223.6 $1,367.7 $740.9 $495.8 Term Debt 1 $217.1 $217.9 $256.6 $252.9 $34.2 $37.0 Net Book Value 592.6 $610.2 $614.0 $778.7 $594.1 $324.8 Common Shares (millions) As of 3/31/17 Common Outstanding 2 38.6 RSU s 0.9 PRSU s 0.2 Note: 1 Term debt before netting of the debt issuance costs of $6.3 million, $4.1 million and $5.2 million at December 31, 2016, 2015 and 2014 respectively. 2 Insider ownership of outstanding common shares is 2.59% 3 Stock appreciation rights outstanding as of 12/31/2016 per our 10-K filing is 2.5 million. SAR s are settled as equity or cash at the discretion of the board. 34 39.7
Historical Condensed Income Statement ($mm) 2016 2015 2014 2013 2012 Revenue $ 2,041.2 $ 1,387.3 $ 1,273.8 $ 1,498.1 $ 1,015.0 COGS $ 1,869.7 $ 1,276.8 $ 1,113.2 $ 1,258.7 $ 956.7 Gross Profit $ 171.5 $ 110.5 $ 160.6 $ 239.4 $ 58.3 Selling, General & Administrative Expenses $ 88.3 $ 73.4 $ 62.7 $ 46.1 $ 42.4 Research & Development Expense 1 $ 18.2 $ 16.9 $ 12.4 $ - $ - Impairment of Tangible/Intangible Assets 2 $ 17.9 $ 175.0 $ - $ - $ - Income/(Loss) from Operation $ 47.2 $ (154.7) $ 85.5 $ 193.3 $ 15.9 Other Income/(Expense) $ 1.8 $ (5.7) $ 0.6 $ (2.0) $ 7.8 Income tax Benefit/(Expense) $ (4.3) $ 8.7 $ (3.6) $ (4.9) $ (1.5) Net Income/(Loss) 3 $ 44.7 $ (151.7) $ 82.5 $ 186.4 $ 22.3 EBITDA $ 102.1 $ 50.2 $ 107.8 $ 148.4 $ 96.5 Note: 1. For 2012 and 2013, Research and Development Expenses were included in SG&A Expenses/COGS. 2. $175 million charge for 2015 is related to impairment of goodwill. $17.9 million charge for 2016 is related to impairment of physical assets at Emporia ($15.6M) and other plants. 3. See Appendix (Slide 76) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP 4. Total balance may not foot due to rounding. 35
Stock Information Symbol Exchange REGI NASDAQ 50 Day Avg Daily Volume (371,813 as of 5/17/17 per NASDAQ) Market Cap (5/17/17) Analyst Coverage $430.3 million, $11.15 per share Canaccord Genuity: John Quealy Piper Jaffray: Brett Wong Roth Capital Partners: Craig Irwin 36
REG Generates Value for Shareholders 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 37
Appendix 38
REG Geismar 39
Geismar Capabilities REG Geismar has produced on average above nameplate capacity for 5 consecutive months Current Products Renewable hydrocarbon diesel (RHD) Renewable naphtha Renewable propane REG Synthetic Fuels technology platform offers many growth opportunities to expand and optimize REG Geismar Installation of Specialty Products Line RHD capacity expansion Jet fuel production Renewable paraffin specialty chemicals Lighter fluid REG Geismar (75 MGY) Specialty Products Line (12 MGY) (acquired in 2015) 40
% Nameplate Capacity Geismar Production History 120% 100% Hydrogen Shortage or Significant Mechanical & Processing Issues Dynamic Fuels, LLC REG Geismar, LLC 80% 10 Day Flood 60% Mechanical Issues 40% 20% Dynamic Fuels: Plant down & for Sale 2 incidents requiring significant repairs - Plant down 0% Capacity 5 per. Mov. Avg. (Capacity) 41
REG Geismar Land Purchase Purchase of 82 acres for $20 million Includes more than 61 acres adjacent to the facility Lease cancellation on existing property The transaction is expected to reduce REG s operating costs and create opportunities for expansion 42
REG Life Sciences 43
Innovative Technology Creating Value REG Life Sciences has developed a unique biotechnology platform that is built on three fundamental pillars: 1. A World-Leading Technology Platform 2. Large and Profitable Target Markets 3. Strong Intellectual Property This unique platform allows for the creation of thousands of novel compounds that can target dozens of highly profitable markets. A strong intellectual property portfolio ensures this value is sustainable long into the future. World Leading Technology Photo 2003 Griffiths et al; text material 2009 by Steven M. Carr Large and Profitable Markets Strong Intellectual Property 44
REG Life Sciences: Who we are Commercial ready industrial fermentation platform technology with best-in-class microbial fatty acid production technology and intellectual property R&D center in South San Francisco, CA with state-ofthe-art labs Multi-feedstock capable fermentation facility in Okeechobee, FL 45
REG Life Sciences Platform Overview Reprogrammable oleaginous E. coli Flexibility to create 1000 s of unique structures with unique market applications Proven track record of platform acceleration and commercialization First sale in 4Q 2016 Potential to commercialize 10 products within 3 years Proven multi-feedstock fermentation facility Photo 2003 Griffiths et al; text material 2009 by Steven M. Carr Flexibility to use multiple feedstocks including: corn sugars, cane sugars, cellulosic sugars and low cost, low carbon intensity crude glycerin Experienced technical team with deep industry knowledge Source: REG Internal Analysis 46
Broad & Diverse Product Applications Industrial Chemicals Zero-VOC Solvents Rheology Modifiers Adhesives Agrochemicals Textile Coatings Block Surfactants Metal Working Fluids Plastics Medium Chain Copolymers Polyamides and Polyesters Polyurethanes Long Chain Copolymers Plasticizers The value of REG s molecules has been confirmed by subject experts for the listed applications Animal Nutrition Functional / Active Enhanced Nutrition Personal Care Specialty Surfactants Emulsifiers Rheology Modifiers Emollients Paints & Coatings Zero-VOC Solvents Emulsifiers / Formulation Acids Rheology Modifiers Pharma & Laboratory APIs / Pharma / Research Specialty Solvents Human Nutrition Nutraceuticals Texture / Property Enhancers Enhanced Nutrition Ingredients Home & Industrial Cleaning Performance Surfactants Solvents Emulsifiers Lubricants Lubricant Additives Specialty Application Base Stock Food-contact Lubricants Flavor & Fragrance Flavor Ingredients Fragrance Molecules Carrier Oils Source: REG Internal Analysis 47
REG Life Sciences Product Pipeline Product Multi-Functional Fatty Acid (Musk) Fragrance Intermediate 3 Performance Chemical 1* Performance Chemical 2* Phase 1: Early Development Phase 2: Mid Development Phase 3: Advanced Development Phase 4: Pre- Launch Anticipated First Sale Octyl Acetate 2017 Octanol (Plastics) 2018 C8/C10 Esters Nutrition 2017 Capability Phase 1 Phase 2 Phase 3 Phase 4 First Sale Additional Discovery Phase Molecules 2016 2017 TBD TBD TBD Glycerin Feedstock Cellulosic Feedstock** * Anticipated initial application as specialty surfactant **Jointly funded research and development effort with ExxonMobil Progress Through 2015 2016 Advancements 48
Opportunities Current Present-1.5 years Grow high-margin businesses Expand product suites and segment markets to increase volumes Potentially stand-alone for spin-our or licensing Fragrances and Flavors, Nutritional Supplements, Cosmetic Actives Near-Term 2-3 years Provide new supply for strong partnerships New supply source of performance products into growing markets High demand, attractive specialty pricing Sustainable Plastics, Specialty Surfactants, Zero- VOC Solvents, Animal Nutrition Mid-Term 3-5 years Offer unique competitive advantages Novel molecules or routes to disrupt industries and enable innovations IP-protected, sustained competitive positioning High-Performance Polymers, Safer Polymer Systems, Novel Rheology Modifiers Source: REG Internal Analysis 49
Mass Yield Product Platform Acceleration 2 Products in 8 Years 6 Products in 3 Years 30% 25% Performance Chemical 2 Multi-Functional Fatty Acid 20% 15% 10% Biodiesel Detergent Alcohol Performance Chemical 1 Octanol Fragrance Intermediate 3 C8/10 Esters 5% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: REG Internal Analysis 50
Proven multi-feedstock fermentation facility Multiple products through commercial launch scale Regulatory requirements satisfied for commercial sales Demonstrated production on lower cost, low carbon intensity crude glycerin Tolled for multiple third parties with different microbial platforms, proving manufacturing flexibility Fermentation Facility Okeechobee, Florida Source: REG Internal Analysis 51
Regulatory Matters 52
Leveraging photosynthesis and the CO 2 cycle boosts earning power, improves our environment, and delivers renewable fuel CO 2 Cycle Factory emissions Photosynthesis Plant respiration Animal respiration Organic carbon Decay organisms Dead organisms and waste products Fossils and fossil fuels 53
World Demands Cleaner, Lower Carbon Intensity Solutions Physical Product Regulation Americas Europe Asia Pacific Biodiesel Mixture Excise Tax Credit (BTC) Canadian Provincial Programs Clean Water and Clean Air Acts Food Safety Modernization Act (FSMA) Low Carbon Fuel Standards (California and Oregon) Renewable Fuel Standard (RFS2) Renewable Identification Numbers (RINS) Renewable Volume Obligation (RVO) State Chemical Incentives State Fuel Incentives Tax Policies Toxic Substances Control Act (TSCA) International Sustainability Carbon Certification (ISCC) Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Renewable Energy Directive (RED) Double counting incentives for wastes and residues Paris Accords Feedstock Incentives National Biofuel Programs Provincial Biofuel Programs 54
Billions of Gallons Billions of Gallons RFS2 Volume Requirements 1,2 2014 2015 2016 2017 2018 Biomass-based diesel 1.63 bn gal 1.73 bn gal 1.90 bn gal 2.00 bn gal 2.10 bn gal Advanced biofuel 2.67 bn gal 2.88 bn gal 3.61 bn gal 4.28 bn gal n/a Cellulosic biofuel 33 mm gal 123 mm gal 230 mm gal 311 mm gal n/a Total renewable fuels 16.28 bn gal 16.93 bn gal 18.11 bn gal 19.28 bn gal n/a Growth in Biomass Based Diesel Standard Growth Advanced Biofuels Standard 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016 2017 2018 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016 2017 Source: 1 EPA 11/23/2016 Final RVOs as of 11/23/2016 for all categories Note: 2 All volumes are ethanol-equivalent, except for biomass-based diesel which is actual. 55
(billions of gallons) (billions of gallons) RFS2 Fundamentals and RINs 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 Biomass-based Diesel Volume Requirements 1,4 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Biomass-based diesel Cellulosic Biofuel Advanced biofuels U.S. RFS2 Renewable Fuel Volume Requirements 1,3,4 D4 RINs Can Satisfy 3 RVO Categories 1,2 20.0 15.0 10.0 5.0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 Biomass-based diesel Cellulosic Biofuel Advanced biofuels Total Renewable Fuel Renewable Fuel (D6) Corn ethanol Butanol Advanced Biofuel (D5) Sugarcane ethanol Biomass-based Diesel (D4) Biodiesel Renewable diesel Cellulosic Diesel (D7) Cellulosic Biofuel (D3) Cellulosic ethanol Renewable gasoline Biogas Source: 1 EPA Note: 2 Oval sizes not proportionate to volumes 3 Cellulosic Biofuel RVO is 1.61% of Total Renewable Fuel RVO in 2017 4 2017/2018 RVO are finalized - published on 12/12/2016 in Federal Register 56
1/2012 3/2012 5/2012 7/2012 9/2012 11/2012 1/2013 3/2013 5/2013 7/2013 9/2013 11/2013 1/2014 3/2014 5/2014 7/2014 9/2014 11/2014 1/2015 3/2015 5/2015 7/2015 9/2015 11/2015 1/2016 3/2016 5/2016 7/2016 9/2016 11/2016 1/2017 3/2017 Historical RIN Prices $2.00 $1.50 $1.00 $0.50 $0.00 D4 Biomass-based Diesel D5 Advanced Biofuel D6 Other Renewable Fuel Source: REG, OPIS 57
California Low Carbon Fuel Standard CARB was ordered by a state court in 2013 to halt the LCFS at 1% until the policy was re-adopted. The re-adopted LCFS began compliance in 2016. The reductions from the 2010 baseline will be 1% in 2015; 2% in 2016; 3.5% in 2017; 5% in 2018; 7.5% in 2019; and 10% in 2020. 58
Carbon Credit $/MT LCFS Credit Prices $140 LCFS Carbon Credit $120 $100 $80 $60 $40 $20 $0 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Source: OPIS 59
Gallons LCFS Biomass-based Diesel Growth 120,000,000 100,000,000 80,000,000 60,000,000 Biodiesel RHD 40,000,000 20,000,000 - Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Source: REG Analysis of CARB Data 60
States with Notable Biomass-Based Diesel 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 Policy currently suspended No major policy Note: Current as of 01/31/2017 Source: DOE Alternative Fuels Data Center and Individual State Statues 61
Federal Biodiesel Tax Incentive Biodiesel Mixture Excise Tax Credit (BTC) Lapsed January 1, 2017 American Renewable Fuel and Job Creation Act Bi-partisan House & Senate Bills to Reinstate and Reform BTC to a Domestic Producer Incentive S. 944--Sens. Chuck Grassley & Maria Cantwell H.R. 2383---Reps. Kristi Noem & Bill Pascrell Both bills would reinstate the incentive retroactively from Jan.1, 2017 and extend it through Dec. 31, 2020 62 Copyright 2016
National Biodiesel Board Fair Trade Coalition Petitions U.S. Dept. of Commerce Filed antidumping and countervailing duty petitions against Argentine and Indonesian imports Biodiesel imports surged by 464 percent from 2014 to 2016 U.S. manufacturers lost 18.3% of market share May 5: ITC determined US industry has been injured by these imports, continues investigation 63 Copyright 2016
Gallons Increased Biodiesel/RHD Imports to US 160,000,000 140,000,000 120,000,000 Annual Totals: 2014-313 MG 2015-557 MG 2016-916 MG Source: EIA 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016 65 Copyright 2016
President s Executive Order Promoting Agriculture & Rural Prosperity It is in the national interest to promote American agriculture and protect the rural communities where food, fiber, forestry, and many of our renewable fuels are cultivated. Federal Task force created to identify legislative, regulatory and policy changes to advance rural America. to further the Nation's energy security by advancing traditional and renewable energy production in the rural landscape. 65 Copyright 2016
Other Matters 66
Experienced Management Team Daniel J. Oh President & Chief Executive Officer Natalie Merrill Vice President, Chief of Staff Chad Stone Chief Financial Officer Jean Scemama Vice President, REG Energy Europe & International Trading & Commodities Brad Albin Vice President, Manufacturing Chad Baker Controller, Chief Accounting Officer Eric Bowen Vice President, Corporate Business Development & Legal Affairs Todd Robinson Treasurer Gary Haer Vice President, Sales & Marketing Jonathon Schwebach Director, Global Tax Biographies available at www.regi.com 67
Broad Marketing and Logistics Capabilities Distribution Footprint at Plants, Terminals and to Customers 40 terminal locations (plus 12 plants) Delivered biodiesel and co-products to 47 states, 4 provinces in Canada, U.K and Peru in 2016 68
Excellent Supply Chain Management and Logistics are Critical for Profitability 2016 Movement Control 46,616 REG Arranged Truckloads 43 States/Provinces 4,955 Railcars 33 States/Provinces 87 Water Movements 3 States and 8 Countries 15,054,385 gallons via Pipeline 3 States Railcar movement accounts for all cars monitored and/or moved with product and empty. Water movement accounts for all barges, ships, and containers monitored and/or moved with by REG. 69
Customer Delivery Points in 2016 Note: REG delivered biodiesel and co-products to 47 states, 4 provinces in Canada, U.K. and Peru in 2016. 70
Potential and Existing International Trade Flows REG Ames REG Amsterdam REG Biorefineries Operating Facilities REG Regional Offices REG Terminal Locations 71
Commercial Platforms Compliance EH&S Government Affairs HR IT Systems & Support Logistics & Distribution Manufacturing Oracle JDE ERP system Plant Information Systems & Real-Time Data Procurement Quality Management Systems Regional Locations Sales & Marketing Supply Chain Management Video Teleconference, Lync, & VOIP..and more 72
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 $/gallon Spreads Over Time $6 $5 RFS implemented $1 biodiesel tax credit $1 biodiesel tax credit $1 biodiesel tax credit expired $1 biodiesel tax credit $1 biodiesel tax credit $1 biodiesel tax $4 $3 $2 $1 $- 7.5 lbs sbo/gal Source: The Jacobsen, CME Group, REG Spot BD-ICO SBO CBOT ICO Spot Biodiesel 73
USD Energy Market Prices $5 $4 $3 $2 $1 $0 WTI Crude Oil NY Harbor ULSD Spot SME Chicago Source: EIA, CME Group, OPIS 74
Adjusted EBITDA Reconciliation - Annual ($mm) 2011 2012 2013 2014 2015 2016 Net Income (Loss) 88.87 22.26 186.36 82.54 (151.71) 44.71 (Income) Loss from Equity Investments (0.44) - - - - - Income Tax (Benefit) Expense 2.98 1.45 4.94 3.57 (8.70) 4.27 Interest Expense 8.10 4.68 2.39 6.69 11.87 15.99 Other Income (0.93) (0.17) (0.38) (0.66) (0.47) (15.80) Change in fair value of Seneca Holdco liability 2.10 (0.35) - - - - Change in fair value of preferred stock conversion feature embedded derivatives (7.94) (11.97) - - - - Stock issued for glycerin termination - 1.90 - - - - Change in fair value of contingent liability - - - (6.63) (0.36) 7.90 Bargain purchase gain from acquisition - - - - (5.36) - Gain on involuntary conversion - - - - - (9.89) Impairment of goodwill - - - - 175.03 - Impairment of asset 4 - - - - - 17.89 Straight-line lease expense 1.90 (0.29) (0.65) (0.64) (0.42) (0.29) Depreciation 7.18 8.02 9.70 15.26 25.00 31.83 Amortization (0.45) (0.75) (0.75) (0.21) (0.72) (0.36) Other - - - 0.07 0.84 - Non-recurring lease cancellation - - - 1.90 - - Non-recurring business interruption - 0.86 (0.86) - - - Non-cash Stock Compensation 5.93 13.12 5.42 5.88 5.16 5.90 Adjusted EBITDA before 2012 BTC 107.30 38.76 206.17 107.77 50.16 102.15 2012 Retroactive BTC 2-57.75 (57.75) - - - Adjusted EBITDA 1,3 107.30 96.51 148.42 107.77 50.16 102.15 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 2012. 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. 3 Total balance may not foot due to rounding 4 Represent the impairment charge to write down the carrying value of certain assets, mostly attributed to the company s Emporia facility, to remaining salvage value. 75
Adjusted EBITDA Reconciliation ($mm) 1Q 16 2Q 16 3Q 16 4Q 16 2016 2 1Q 17 Net Income (Loss) (6.89) 7.71 23.51 20.38 44.71 (15.9) Income tax (benefit) expense 0.73 1.30 (1.2) 3.45 4.27 1.08 Interest expense 3.31 3.74 4.49 4.45 15.99 4.54 Gain on involuntary conversion (3.54) (1.00) (3.47) (1.88) (9.89) - Other (income) expense, net 0.09 (15.74) (2.70) 2.55 (15.80) 0.49 Change in fair value of contingent liability (0.02) 3.57 1.12 3.22 7.90 0.59 Impairment of assets - - - 17.89 17.89 - Straight-line lease expense (0.09) (0.08) (0.07) (0.04) (0.29) (0.03) Depreciation 7.67 7.82 7.95 8.38 31.83 8.42 Amortization (0.14) (0.13) (0.13) 0.05 (0.36) 0.13 Non-cash stock compensation 1.08 (0.86) 2.13 1.83 5.90 1.31 Adjusted EBITDA 1,2 2.20 8.05 31.62 60.27 102.15 0.60 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 Total balance may not foot due to rounding. 76