The Andersons, Inc. · NASDAQ:ANDE
The Andersons — Andersons — Merger or Acquisition (March 2018)
16 slides from The Andersons's merger presentation, Mar 7, 2018
Slide 1: The Andersons, Inc. Announces Formation of ELEMENT, LLC in Partnership with ICM, Inc.
The Andersons, Inc. Announces Formation of ELEMENT, LLC in Partnership with ICM, Inc. 1 March 7, 2018
Slide 2: Forward Looking Statements
2 Certain information discussed today constitutes forward-looking statements. Actual results could differ materially from those presented in the forward looking statements as a result of many factors including general economic conditions, weather, competitive conditions in the Company’s industries,
Slide 3: Speakers
3 Speakers Pat Bowe President and Chief Executive Officer Mike Irmen President, Ethanol Group John Kraus Director, Investor Relations
Slide 4: The Andersons and ICM Form ELEMENT, LLC
The Andersons and ICM Form ELEMENT, LLC The Andersons and ICM Have a Long History and Are a Formidable Team 4
Slide 5: About ICM
About ICM • Founded in 1995; headquartered in Colwich, Kansas; privately-held company with over 350 employees • Focused on innovation, integration and optimization to advance the ethanol industry. • Two-thirds of North American production and 30% of worldwide fuel ethanol production utilizes ICM tec
Slide 6: Near- and Long-term Goals
Near- and Long-term Goals Near-term | 1 to 2 Years • Lower controllable costs by $0.01/gallon • Add high-protein DDGs production at 1-2 plants • Increase gallons under management from ~475M to 550M+ Long-term | 3 to 5 Years • Produce cellulosic ethanol from corn kernel fiber • Add high-protein DDGs
Slide 7: Project Summary
Project Summary ELEMENTTM Will Produce Substantially Better Returns per Gallon • 70 million gallons per year ethanol capacity • $175 million joint investment • The Andersons will provide grain origination; ethanol, RIN and carbon credit marketing; and risk management and other support services • ICM
Slide 8: Technology Innovations
ICM’s technologies enable the following innovations within ELEMENTTM: • Improved ethanol and corn oil production and yield • Production of low carbon intensity ethanol, generating carbon credits • Production of cellulosic ethanol, generating cellulosic RINs • Production of higher value feed products
Slide 9: Next Steps and Timeline
Next Steps and Timeline 9 • Initial funding is complete • Construction began earlier this week • Initial production is anticipated to commence in Q2 2019 • Facility is expected to be fully operational by December 2019 ELEMENT™ site in Colwich, Kansas, March 2018
Slide 10: ELEMENT's Key Advantages
ELEMENT’s Key Advantages World-leading corn ethanol and distillers corn oil production per bushel from a dry mill plant Products will include several new value added feed products Ethanol gallons will have among the lowest carbon intensity scores in the U.S. Ethanol gallons will be greener due to us
Slide 11: Q&A
LaaZy SSR Q&A Ol Ee Es
Slide 12: Thank you for joining us
Thank you for joining us. Our next earnings call is scheduled for Tuesday, May 8 at 11:00 a.m. 12
Slide 13: Appendix: Market Data
Pe een BSE Appendix Market Data
Slide 14: Market Data - Supportive Trends
Market Data - Supportive Trends Secular Trends Impact Global Biofuels Demand • Domestic demand via higher blends continues to grow • Exports should continue to increase • Clean air emissions continue to support increased world demand for ethanol Policy/Regulations • Renewable Fuel Standard 2 will su
Slide 15: California Ethanol Market Snapshot
California Ethanol Market Snapshot • California annual ethanol demand is 1.5 billion gallons (approximately 10% of total U.S. demand) • Element’s non-cellulosic gallons will have a lower Carbon Intensity (CI) score than Brazil sugarcane after considering transportation − May offset some South Americ
Slide 16: California Low Carbon Fuel Standard
California Low Carbon Fuel Standard As Carbon Reduction Percentage Increases, Low Carbon Fuels Such As ELEMENT’s Will Become Even More Valuable Year Percent Reduction Year Percent Reduction 2010 Reporting Year 2011 0.25% 2021 10.0% 2012 0.5% 2022 10.0% 2013 1.0% 2023 11.0% 2014 1.0% 2024 12.0% 2015