Green Plains, Inc. · NASDAQ:GPRE
Green Plains — Credit Suisse Renewables and Utilities Conference 2021
22 slides from Green Plains's conference presentation, May 14, 2021
Slide 1: Credit Suisse Renewables and Utilities Conference
Credit Suisse Renewables and Utilities Conference May 13-14, 2021
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: Our Transformation is Underway
Our Transformation is Underway . . . • Green Plains (GPRE) is transforming from traditional ethanol into a sustainable biorefinery platform, innovating through ag technology to produce higher-value products with stable cash flows, for tomorrow’s sustainable economy • Investments in critical technolo
Slide 4: … to a Sustainable Future
… to a Sustainable Future Tracking our Transformation Through Milestones Milestones Completed Future Milestones Partner with Novozymes in protein production Begin Clean Sugar production at York Innovation Center Ultra-High Protein production begins at Shenandoah Announce general contractor t
Slide 5: We Have Created a Powerful Ag Tech Platform
We Have Created a Powerful Ag Tech Platform Acquisition and partnerships accelerate technology deployment • The company owns significant intellectual property and is one of the only commercially proven sustainable ultra-high protein technologies for dry mill production facilities • Successful operat
Slide 6: Introducing the Biorefinery Platform of the Future
Introducing the Biorefinery Platform of the Future Our biorefineries’ role in whole kernel solutions • Fluid Quip provides the cornerstone technology for our sustainable transformation, creating a powerful ag tech platform • Transforms the commodity into its most valuable components – proteins, oils
Slide 7: Five Main Verticals in Addition to 1.0 Platform
Five Main Verticals in Addition to 1.0 Platform • Sustainable Ultra-High Protein - sustainable ingredients for high-value global markets in pet, aquaculture, dairy and poultry industries • Renewable Corn Oil - low carbon feedstock for high-growth renewable diesel industry • Specialty Alcohol – high
Slide 8: Protein Drives a Transformation Inflection Point
Protein Drives a Transformation Inflection Point ... Protein and Corn Oil Drive Gross Margin • As Ultra-High Protein is deployed, our Improvement platform transitions to higher gross margins, even prior to potential uplift from 300 12.0% Gross Margin ($ Millions) the J-curve 250 10.0% Gross Margin %
Slide 9: … Toward Our 2024E Run-Rate EBITDA
… Toward Our 2024E* Run-Rate EBITDA Assumptions • Assets produce at 95% of capacity on 958 MGY of capacity • Potential contributions from fuel ethanol business excluded $600 Sustainable Ultra-High Protein • Protein capital investment of ~$400M based on 11 ethanol plants, with ~$340M remaining to be
Slide 10: Sustainable Ultra-High Protein – Our New Product
Sustainable Ultra-High Protein – Our New Product Sustainable Ultra-High Protein Product Advantages • Flexible protein concentration starting at 50% • Animal free source: vegetable (75%) and fungal (25%) • Cornerstone ingredient for developing new feed rations, freedom of formulation • High digestibi
Slide 11: Protein Technology Generates Structural Uplift
Protein Technology Generates Structural Uplift Sustainable Ultra-High Protein • Biorefinery economics see significant improvement Pricing Comparison $700 • Base Ultra-High Protein at 50% is valued at ~ 2.5x distillers UHP price over grains values, driven by traditional relationship between corn $600
Slide 12: Renewable Corn Oil (Renewable Diesel Input)
Renewable Corn Oil (Renewable Diesel Input) Renewable Corn Oil Renewable Corn Oil Demand Growth Taking Advantage of the Unique Drivers in Renewable Corn Oil Driven by sustainability initiatives, renewable Renewable Corn Oil Price (Cents per Pound) Renewable Corn Oil Margin Increase corn oil volumes
Slide 13: Renewable Corn Oil
Renewable Corn Oil Renewable Corn Oil A Sustainable Low Carbon Feedstock for Renewable Diesel Average CI Pathways for Biodiesel • Corn Oil’s lower CI puts it at an advantage and Renewable Diesel Feedstock relative to the majority of competing feedstocks • As an inedible waste oil, increased producti
Slide 14: Creating Value Through Protein Innovation
Creating Value Through Protein Innovation Sustainable Ultra-High Protein J-Curve of Protein Opportunity Gen II Developments • World protein demand is growing across every major sector driven by population growth, economics and availability Fishmeal • Sustainable ultra-high protein production technol
Slide 15: Premium High-Purity, Specialty Alcohol
Premium High-Purity, Specialty Alcohol Specialty Alcohol Industry Update US Annual Sales of Cleaning • Consumer demand for sanitizers and disinfectants has vastly accelerated with Products ($bn) the ongoing COVID-19 pandemic and heightened consumer awareness of $4 infection prevention $3.4 • Special
Slide 16: Clean Sugar Market
Clean Sugar Market Clean Sugar • New sugar demand growth is being driven by biology focused companies who use sugar as a feedstock for their bio-processes ꟷ Increased penetration of bio-based processes drives additional ‘sugar’ needs of 7-14 billion pounds ꟷ Growing demand for fermentation to produc
Slide 17: Carbon Capture and Sequestration Initiatives
Carbon Capture and Sequestration Initiatives Carbon Capture and Sequestration Opportunity to increase margins by $0.15 / gallon with no capital required from the ethanol facilities, in addition to potential for carbon credits, 45Q tax incentives and direct returns on investments in the pipeline and
Slide 18: Fully Funded Protein Transformation
Fully Funded Protein Transformation First Quarter Financings and Transactions ($ in millions) 3/31/21 • $125 million mezzanine notes with BlackRock Cash, cash equivalents & restricted cash $654.4 • $230 million convertible notes due 2027 Debt 1 – Proceeds used to redeem approximately $136 4.125% con
Slide 19: A Real ESG Story
A Real ESG Story Carbon Capture and Sequestration (CCS) • Zero Carbon Footprint – With an opportunity to meter and sequester carbon, Green Plains can lead a zero- carbon footprint for the renewable fuels industry, creating one of the largest projects globally • Lower CI Scores – Biofuels from plants
Slide 20: Investment Highlights
Investment Highlights • Strong balance sheet with ample liquidity to execute our strategy Fully Funded • Fully funded implementation of MSC Ultra-High Protein technology across the platform • Fluid Quip owns a significant disruptive IP portfolio that adds value to several ag processing disciplines •
Slide 21: www.gpreinc.com
www.gpreinc.com LinkedIn | Facebook | Twitter | Instagram
Slide 22: Glossary
Glossary • BOS – Brix Oil Separation System • CCS – Carbon Capture and Storage • CI – Carbon Intensity • CST – Clean Sugar Technology • DDG – Dried Distillers Grains • FQT – Fluid Quip Technologies • GPRE – Green Plains Inc. • GNS – Grain Neutral Spirits • GPP – Green Plains Partners • LCFS – Low Ca
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