Green Plains, Inc. · NASDAQ:GPRE
Green Plains — Green Plains Renewable Energy — Shareholder Meeting (April 2008)
33 slides from Green Plains's shareholder meeting presentation, Apr 16, 2008
Slide 1: Annual Meeting of Shareholders
Qi, GPRE | A) April 16, 2008 Annual Meeting of Shareholders
Slide 2: Business Overview
ent Gi « CGPRE Business Overview Wayne Hoovestol Chief Executive Officer
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-boking statements based on current expectations that involve a number of risks and uncertainties. Forwarctiooking stalements generally do not relate strictly to historical of current facts, but rather to plans and objectives for future op
Slide 4: Company History
Company History trading on Essex Elevator acquisition Great Lakes Production Construction in meter. projected to ‘Shenandoah Construction in acquisition begin at begins Suparer announced Superior plant gins ¢GPRE?
Slide 5: Vertically-Integrated, Low-Cost Producer
Vertically-Integrated, Low-Cost Producer Green Plains’ vertical integration strategy sets it apart from other ethanol companies. Vertical integration is an established and proven strategy for reducing risk and increasing profits in commodity-driven businesses.
Slide 6: Vertical integration ...
Vertical integration ... * increases efficiency and adds value to ethanol production. * helps to manage commodity price and supply risks.
Slide 7: Green Plains has a strategy to acquire upstream and downstream firms
Green Plains has a strategy to acquire upstream and downstream firms in the ethanol value chain. Upstream Firms: Agribusinesses, grain elevators and grain services Downstream Firms: Distributors of distillers grains, ethanol marketers and fuel blenders
Slide 8: The target result is greater earnings per gallon
The target result is greater earnings per gallon and increased value for shareholders. z
Slide 9: Delivering on Promises
Delivering on Promises a — as 7
Slide 10: The Shenandoah ethanol plant became operational in August 07
The Shenandoah ethanol plant became operational in August 2007.
Slide 11: Shenandoah Plant Summary
Shenandoah Plant Summary Nameplate Capacity: ‘50 million gallonsAyear - expandable to 100 million gallons Builder: Fagen Inc. Process Technology Provider: ICM, Inc. Start of Construction: April 2006 First Grind: August 23, 2007 Transportation Capacity: 100-car rail capability; dual-scale truck capab
Slide 12: The Superior ethanol plant is expected to be operational later this spring
The Superior ethanol plant is expected to be operational later this spring.
Slide 13: Superior Plant Summary
Superior Plant Summary Nameplate Capacity: Builder: Process Technology Provider: Start of Construction: Expected First Grind: Transportation Capacity: Employees: ‘50 million gallons4year — expandable to 100 million gallons Agra Industries, Inc. Delta T, Inc. August 2006 Late spring 2008 100-car rail
Slide 14: Integrating the ethanol value chain through acquisitions
With the acquisition of agribusinesses, grain elevators and grain services, Green Plains is diligently integrating the ethanol value chain.
Slide 15: Acquisition Summary - Essex Elevator, Inc.
Acquisition Summary - Essex Elevator, Inc. Company Overview: Grain Elevator + 2.8 million bushels of grain storage capacity + Close proximity to Shenandoah ethanol plant + Rail access September 2007
Slide 16: Acquisition Summary — Great Lakes Cooperative
Acquisition Summary — Great Lakes Cooperative Company Overview: Full-service farm cooperative * 14.7 million bushels of grain storage capacity + Grain, agronomy, feed & petroleum businesses + Approximately 100 employees + About 4,000 customers Purchase Price: Cash and stock + Approximately $12.5 mil
Slide 17: Acquisition Summary — GLC (cont.)
Acquisition Summary — GLC (cont.) Business Highlights * Seven sites within 50 miles of Superior ethanol plant + Four rail load-out facilities + FY 2007 throughput: 18 million bushels corn, 6 million bushels soybeans + FY 2007 revenues of $146 million Vertical Integration Strategy + Grain storage ava
Slide 18: Building stronger relationships with grain producers
Green Plains intends to build stronger relationships with grain producers, opening the door for future business FF opportunities.
Slide 19: Green Plains owns grain storage capacity
Green Plains owns grain storage capacity of approximately 19 million bushels. Green Plains Grain Company LLC was formed to operate and grow our grain storage, agronomy, seed, fertilizer, feed and petroleum businesses. CGPRE?
Slide 20: In two short years, Green Plains has delivered on its promises
In two short years, Green Plains has delivered on its promises and built an operational company that is poised for future growth.
Slide 21: Poised for Future Growth
POISED FOR FUTURE GROWTH
Slide 22: Strategic Direction
Strategic Direction To be a consolidator in the ethanol industry by: + Providing professional management and developed infrastructure for efficient ethanol production: — Corn procurement and logistics — Risk management — Ethanol marketing and logistics — Operations support — Access to financial capi
Slide 23: Value-added projects: algae-based biofuel feedstock R&D
Green Plains intends to pursue value-added projects that complement ethanol production. Green Plains received preliminary approval for a $2.3m grant te fund R&D GREENFUEL of algae-based biofuel feedstock - production. The proposal was submitted ws TECHNOLOGIES CORPORATION in eggperation with GreenFu
Slide 24: Fully operational ethanol producer with a strategy for growth
Green Plains entered 2007 as a start-up enterprise. Now, we are a fully operational ethanol producer with a strategy for growth. pine CGPRE?
Slide 25: Financial Update
ent Gi « CGPRE | Financial Update Jerry Peters Chief Financial Officer
Slide 26: For the quarter ending February 29, 2008, Green Plains reported ...
For the quarter ending February 29, 2008, Green Plains reported ... + Total revenues of $37.8 million + Netincome of $9.9 million + Eamings per share of $1.37 + Eamings of $0.79 per gallon (based on nameplate capacity)
Slide 27: Statement of Operations
Statement of Operations 1% Quarter 2008 4" Quarter (In Thousands) Revenues: Ethanol Distillers grains Grain merchandising & storage Total revenues Cost of goods sold Gross profit Operating expenses Operating income (loss) Other income (expense) Income before income taxes, Income tax provision Net in
Slide 28: Operating & Other Data
Operating & Other Data _1* Quarter 2008 4!" Quarter 2007 Ethanol sold (thousands of gallons) Average net price of ethanol sold ($ per gallon) Average corn cost ($ per bushel) Average net price of distillers grains ($ per equivalent dried ton) 13,835 $2.02 $2.49 $122 11,046 $1.64 $3.56 $122 CGPRE?
Slide 29: Fixed-price corn contracts as of February 29, 2008
As of February 29, 2008, approximately 61% of expected corn usage for the next 12 months was subject to fixed-price contracts, at a weighted price of approximately $4.42 per bushel.
Slide 30: RFS-Mandated Biofuels Volumes
RFS-Mandated Biofuels Volumes ‘in Billon Gallons Growing US Ethanol Market Today, ethanol is blended with approximately 50% of gasoline sold in US. Annual US ethanol production is approximately 8 billion gallons The federally-mandated renewable fuel standard (RFS) requires 36 billion gallons by 2022
Slide 31: Currently Ethanol is "Buying" Market Share
Currently Ethanol is “Buying” Market Share + Recently, blenders are capturing approximately $0.75 per gallon margin — $0.51 per gallon blenders’ credit — Approximately $0.25 per gallon discount to gasoline + Total economic benefit is nearly $7 billion based on industry capacity — Blending infrastruc
Slide 32: Investment Highlights
Investment Highlights * Significant near-term revenue ramp as Green Plains Grain Company LLC is integrated and the Superior ethanol plant begins production + Efficient, low-cost producer with vertical integration strategy + Disciplined growth strategy through targeted acquisitions + Opportunities to
Slide 33: Question and Answer
QUESTION AND ANSWER , i
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