Aemetis, Inc · NASDAQ:AMTX
Aemetis — Investor Presentation (April 2013)
28 slides from Aemetis's investor presentation, April 2013
Slide 1: The Aemetis Biorefineries
The Aemetis Biorefineries Commercially Operating Second Generation Advanced Biofuels Company April 2013
Slide 2: Disclaimer
Disclaimer Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or event
Slide 3: Agenda
Agenda Introduction Board / Management Team Industry Problem & Solution Company Background Current / Future Developments
Slide 4: Our Company
Our Company Aemetis is an international renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of first generation ethanol and biodiesel plants into advanced
Slide 5: Aemetis Value Proposition
Aemetis Value Proposition North American renewable fuels company with Emerging Market exposure Strong management leadership with proven track record Converting existing facilities and integrating advanced technologies Flexible, non-food feedstock input which is non-disruptive to food supply
Slide 6: Key Highlights: Aemetis, Inc.
Key Highlights: Aemetis, Inc. • Acquired Zymetis, Inc., a novel biorefining technology company, for its patent portfolio and production processes (2011) o 5 granted patents on enzyme and microbe technology for biofuels production • Owns/Operates renewable fuels and chemicals facilities in US and Ind
Slide 7: Agenda
Agenda Introduction Board / Management Team Industry Problem & Solution Company Background Current / Future Developments
Slide 8: Board of Directors
Board of Directors • Eric McAfee, Chairman and CEO, Founder o Founder of Pacific Ethanol (Nasdaq: PEIX), Evolution Petroleum (Amex: EPM), Pacific Asia Petroleum (Amex: CAK) o GlobalScot appointed by First Minister of Scotland to advise on renewable energy • Harold Sorgenti, Director o Principal of S
Slide 9: Senior Management Team
Senior Management Team • Eric McAfee, Chairman and CEO • Andy Foster, President, AE Advanced Fuels o Six years in biofuels industry with Aemetis o Extensive high tech/govt background, including White House and Governor staff • Sanjeev Gupta, Managing Director, Universal Biofuels (India) o President
Slide 10: Agenda
Agenda Introduction Board / Management Team Industry Problem & Solution Company Background Current / Future Developments
Slide 11: Introduction: Biofuels Industry
Introduction: Biofuels Industry • Large Market: $40 billion per year in US for 13 billion gallons blended • Capacity: 210+ plants cost about $28 billion to construct • Less Expensive Fuel: Ethanol is less expensive than gasoline by more than $0.50 per gallon • Lowers cost of gasoline by $1.09 per ga
Slide 12: Problem: Gen 1 Biofuels Challenges
Problem: Gen 1 Biofuels Challenges • Gen 1 Corn-Based Ethanol Issues: o Capital Expenditures: Cost $1 for $1 of equipment – no discounted assets o High Operating Costs: Corn feedstock competes with food supply o Subsidy driven marketplace: Ended Dec 2011 (repeal of $0.45 tax credit) o Capacity to me
Slide 13: Solution: Convert Gen 1 Plants to Gen 2
Solution: Convert Gen 1 Plants to Gen 2 • Larger Markets: o Advanced Biofuels = 21 billion gallon EPA mandate by 2022 = $60 billion market o Fermentation of Bioplastics = $500 billion market • Lower Capital Costs: o Acquire or JV with existing Gen 1 facilities at significant discount o Leverage Gen
Slide 14: Result: New Products at Higher Margins
Result: New Products at Higher Margins • New Products produced at Gen 1 Plants upgraded to Gen 2 technology o Fuels • Advanced ethanol from grain sorghum • December 2012 EPA ruling that ethanol made from grain sorghum and biogas using CHP is Advanced Biofuel • Biodiesel from waste stearine feedstock
Slide 15: Agenda
Agenda Introduction Board / Management Team Industry Problem & Solution Company Background Current / Future Developments
Slide 16: Improved Profitability
Improved Profitability Aemetis Increases Cash Flow of Biofuels Plants Advanced Biofuel - Algae Advanced Biofuel - Milo Traditional Ethanol - Corn G2 G1 $0.05 per Gallon $0.18 per Gallon $1.65 per Gallon Trends in 2013 to higher fuel prices and D5 Advanced Biofuels using biogas $3.90 revenues 20% low
Slide 17: Improved Technology
Improved Technology Aemetis Reduces Carbon Content of Biofuels Traditional Ethanol - Corn Advanced Biofuel - Milo G1 G2 Advanced Biofuel - Algae 80 Carbon Units 45 Carbon Units <30 Carbon Units 17% reduction in Carbon Intensity vs. Gasoline 52% reduction in GHG emissions 68% reduction in GHG emissio
Slide 18: Financial Highlights
Financial Highlights P&L Share Price Performance in $ millions 2009 2010 2011 2012 $0.90 400,000 Total Revenue $ 9.18 $ 8.13 $ 141.86 $ 189.05 $0.80 350,000 $0.70 300,000 Gross Profit $ 0.13 $ (0.12) $ 4.51 $ (8.93) $0.60 250,000 $0.50 EBITDA $ (7.29) $ (2.43) $ 0.93 $ 31.95 200,000 $0.40 150,000 Ne
Slide 19: Cap Table
Cap Table as of March 28, 2013 Common stock: Institutional/Corporate Holders: Sprott Group 9.5% Telecom Investments 4.0% Third Eye Capital 3.9% Zinfadel (Cilion Acq) 3.1% Yucaipa (Cilion Acq) 2.1% Khosla (Cilion Acq) 2.0% The Industrial Company 1.1% Ethanol Business Group 1.0% Dalrymple Global Resou
Slide 20: Agenda
Agenda Introduction Board / Management Team Industry Problem & Solution Company Background Current / Future Developments
Slide 21: Facility Overview
Facility Overview 60 mgy Ethanol Plant - Modesto, CA • Original Build Cost $132 million in 2008 • Investors: Khosla; Branson; CalPERS; Skoll • Aemetis acquired 100% in July 2012 o $15 million cash + 11% of Aemetis • 2012 revenues: $180 million 50 mgy Biodiesel Plant - Kakinada, India • Original Buil
Slide 22: Plant Upgrade Strategy
Plant Upgrade Strategy • Aemetis repurposes lower-value Gen 1 corn ethanol plants with advanced technology, feedstocks and new processes to produce Gen 2 and 3 products o Demonstrate upgrades at Aemetis plants, then partner with existing biofuels facilities to deploy technology • Already executed Ge
Slide 23: Recent Favorable Policies
Recent Favorable Policies • Dec 17, 2012: EPA approved conversion of corn ethanol plants to Advanced Biofuels o Corn Milo (grain sorghum) • Keyes plant advantage: Located 40 miles from deep water Pacific port in Stockton = import less expensive milo from Argentina, rather than use higher priced Mi
Slide 24: Technology Deployment Upside
Technology Deployment Upside • Algae Reactor Technology • Use existing distillation system at Keyes plant ($50 million system cost already invested) • Ethanol yield 230,000 gallons per acre from the Aemetis SAT Algae Reactor • Commercial size reactors operating Solar-Fiberoptic-CO2 Reactor technolog
Slide 25: Appendix A: Peer Group Statistical Comparison
Appendix A Peer Group Statistical Comparison (as of April 5, 2013) $USD in Millions, except per share data Share Market Value Enterprise Value MV EV Company Name Ticker Sales EBITDA Price (MV) (EV) to Sales to Sales Solazyme Inc. SZYM $7.34 $453.3 $319.3 $44.1 ($81.6) 10.3x 7.2x KiOR Inc. KIOR $4.02
Slide 26: Appendix B: G1/G2/G3 Product Margin Comparison
Appendix B G1/G2/G3 Product Margin Comparison (figures projected 2013) Corn Sorghum Algae Unit Economics (per gallon) G1 G2 G3 Ethanol Sales Price $2.85 $2.90 $3.90 Co-Product Sales Price (DDGS or WDG) $0.75 $0.75 $0.00 Other Revenues $0.09 $0.09 $0.00 Total Revenue $3.69 $3.74 $3.90 Cost of Input $
Slide 27: Appendix C: Aemetis Facility Acquisition Overview
Appendix C Aemetis Facility Acquisition Overview (as of April 5, 2013) $USD in Millions Facility Asset Overview (International) Keyes Plant (Nameplate Capacity 60 mgy) Keyes Facility Build Cost (2008) $132.0 Aemetis Acquisition Cost (2012) $15.0 (+11% Aemetis Stock) Kakinada Plant (Nameplate Capacit
Slide 28: Commercially Operating Second Generation Advanced Biofuels Company
Commercially Operating Second Generation Advanced Biofuels Company www.aemetis.com