Green Plains, Inc. · NASDAQ:GPRE
Green Plains — 14th Annual BMO Farm to Market Conference 2019
14 slides from Green Plains's conference presentation, May 15, 2019
Slide 1: 14th Annual Farm to Market Conference
14th Annual Farm to Market Conference May 15, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements that reflect management’s current views of company performance, industry conditions and future economic environment. These statements are based on assumptions and various factors that are subject to risks and uncertaint
Slide 3: First Quarter 2019 Results
First Quarter 2019 Results • Results of operations • Net loss of $42.8 million, or $(1.06) per diluted share • EBITDA of $(18.7) million • Cash, cash equivalents and restricted cash of $273.2 million; availability under revolving credit agreements of $472.8 million at March 31, 2019 • Ethanol produc
Slide 4: Critical Issues Facing the Ethanol Industry
Critical Issues Facing the Ethanol Industry • Trade • Critical to get trade deal with China done • China rumored to purchase 3 million tons (790 million gallons) of ethanol, 10 million tons of distillers grains and 3 million tons of corn • Pressure Brazil to remove current 20% tariff on U.S. ethanol
Slide 5: Margins in the Current Environment
Margins in the Current Environment (thousand barrels) ($ per gallon) 26,500 $1.50 $1.25 24,500 $1.00 22,500 $0.75 20,500 $0.50 $0.25 18,500 $0.00 16,500 -$0.25 14,500 -$0.50 Ethanol Inventory Weekly Avg Crush Margins Source: Energy Information Administration as of February 2, 2019 BMO Farm to Market
Slide 6: Driving Demand Through Higher Blends
Driving Demand Through Higher Blends • E15 sold in 31 states at more than 1,784 retail stations as of May 2, 2019; expected to reach 2,000 by year end • Approximately 175 million gallons of ethanol sold through E15 initiative in 2018, more than double of what was sold in 2017 • We expect 200-250 mil
Slide 7: and Through Expanding Export Markets
and Through Expanding Export Markets Ethanol Exports Domestic Ethanol Exports (gallons) • Anticipate 1.7 billion gallons of exports in 2019, without China demand, in line with the1.7 billion gallons exported in 2018 30% 30% Brazil Canada • Brazil and Canada accounted for ~50% of India exports South
Slide 8: Prove Value & Prepare for the Next Ten Years
Prove Value & Prepare for the Next Ten Years • Portfolio Optimization Plan Update • We continue to make progress on completing our portfolio optimization plan − Working with interested parties in both our ethanol plant sales process and the cattle off-balance sheet initiative − Eliminated $20+ milli
Slide 9: Project 24 – Opex Equalization Plan
Project 24 – Opex Equalization Plan • Our focus is on achieving and maintaining an industry leading lowest cost operator to ensure long-term viability and competitiveness in an oversupplied ethanol market • We have identified significant organic operational cost savings throughout the platform in th
Slide 10: Green Plains 1.0 vs. Green Plains 2.0
Green Plains 1.0 vs. Green Plains 2.0 Through application of new technologies to the dry mill corn process, Green Plains’ corn milling platform becomes a production engine for other high value ingredients needed across multiple domestic and international markets. Green Plains 1.0 Green Plains 2.0 BM
Slide 11: Ethanol Plants Will Become Protein Factories
Ethanol Plants Will Become Protein Factories • Green Plains is currently pursuing two primary technologies that will significantly improve the profitability of our existing ethanol plants. • These co-products open up new markets (poultry and aquaculture) and provide margin expansion versus tradition
Slide 12: What does running our assets at 90% + Project 24 and high-protein technology do for our platform?
What does running our assets at 90% + Project 24 and high- protein technology do for our platform? $266m $300 Total $150 EBITDA $250 $200 (in millions) $230m $150 EBITDA $80 $100 $50 $36 $0 LTM EBITDA Project 24 High-Protein Total Pro-Forma 3/31/19 Technology EBITDA Assumptions: • Assets produce at
Slide 13: In Closing
In Closing Green Plains has a tremendous opportunity to capture significant value imbedded in our platform in terms of cost efficiencies and technological advances that will transform our company over the next 18 to 36 months BMO Farm to Market Conference | May 15, 2019 Page 13
Slide 14: Green Plains Inc. | NASDAQ: GPRE
Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com
Green Plains — 14th Annual BMO Farm to Market Conference 2019 on 6ix