Green Plains, Inc. · NASDAQ:GPRE
Green Plains — Credit Suisse Energy Conference 2020
35 slides from Green Plains's conference presentation, Mar 4, 2020
Slide 1: Credit Suisse Energy Conference
Credit Suisse Energy Conference March 4, 2020
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: Fourth Quarter Results
Fourth Quarter Results ▪ Results of Operations • Adjusted net loss of $14.4 million, or ($0.41) per diluted share • Adjusted EBITDA of $16.0 million • Cash, cash equivalents and restricted cash of $269.9 million; availability under revolving credit agreements of $289.7 million at Dec. 31, 2019 • Tot
Slide 4: Business Activity
Business Activity ▪ Project 24 upgrade completed at Wood River, NE plant and is now at full production and exceeding operating cost reduction expectations ▪ Repurchased 0.5 million shares for $5.8 million during Q4, bringing the total for FY 2019 to 5.4 million shares for approximately $61.6 million
Slide 5: Transforming Green Plains
Transforming Green Plains ▪ Portfolio Optimization Strengthened our Balance Sheet • Realized ~ $780million in proceeds from asset sales over previous five quarters • Debt reduced or deconsolidated by nearly $1 billion • Continue to have strong liquidity position with $270 million in cash ▪ Stock Rep
Slide 6: Green Plains Today
Green Plains Today ▪ One of the leading corn processors in the world Strategically Located Assets • Own and operate 13 biorefineries • Process 11 million tons of corn annually that can produce: - 1.123 billion gallons of biofuel - 2.9 million tons of distillers grains - 300 million pounds of corn oi
Slide 7: Industry & Regulatory Update
Industry & Regulatory Update
Slide 8: Margins in the Current Environment
Margins in the Current Environment (thousand barrels) ($ 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 21, 2020, Company estimat
Slide 9: Regulatory & Trade Perspective
Regulatory & Trade Perspective ▪ Prior Headwinds • Small Refinery Exemptions - Total of 85 waivers granted for compliance years 2016, 2017 and 2018 - Over 4 billion gallons stripped from renewable fuels mandate • Lack of access for E15 • China has been out of the market ▪ Potential Tailwinds • 2020
Slide 10: Driving Demand Through Higher Blends
Driving Demand Through Higher Blends ▪ E15 is offered at 2,070 stations in 30 states and growing1 ▪ Expect 3,000 sites by end of 20201 ▪ Automakers approve the use of E15 in more than 90% of 2020 models2 ▪ $100 million of USDA infrastructure funding to accelerate rollout ▪ EPA reviewing E15 through
Slide 11: Driving Demand Through Higher Exports
Driving Demand Through Higher Exports Ethanol Exports Ethanol Exports 2,000 • Anticipate 1.5 billion gallons of exports in 2019, excluding China 1,500 • Brazil and Canada accounted for ~45% of 1,000 exports in 2019 500 • China could easily take 300 million gallons or more in 2020 - 2016 2017 2018 20
Slide 12: Business Update
Business Update | SWZ | . > Green Plains
Slide 13: Total Transformation Plan
Total Transformation Plan Core Commodities ▪ Our processing plants as GP 1.0 biorefineries DDGs Ethanol Corn Oil • Use mechanical and enzymatic processes to “crack” a commodity into its most valuable components • Aligned with key technology players through exclusive collaborative partnerships to dri
Slide 14: Total Transformation Plan: Key Drivers
Total Transformation Plan: Key Drivers ▪ Global Protein Demand • World demand for protein is growing across every major sector driven by population growth, economics and availability • The growing population needs inexpensive proteins sourced from every animal sector, and most significantly from the
Slide 15: Total Transformation - Project 24 Returning to Operational Excellence
Total Transformation - Project 24 Returning to Operational Excellence ▪ Developed an exclusive partnership with ICM to develop technology that will drive operational costs savings, and reduce energy Wood River OPEX per Gallon consumption at our non-ICM plants $0.35 $0.32 $0.30 ▪ Project 24 will give
Slide 16: World Protein Demand is Growing
World Protein Demand is Growing ▪ World demand in protein is growing across every major sector driven by population growth, economics and availability ▪ Increase protein production without acreage expansion ▪ Installing Fluid-Quip Process Technology, Maximized Stillage Co- Products™ System, a bolt-o
Slide 17: Continuing to Extract Value From the Corn Kernel through Hi-Protein Investments
Continuing to Extract Value From the Corn Kernel through Hi-Protein Investments ▪ The world turns to corn for scalable protein without acreage expansion ▪ Green Plains leading the conversion to a true biorefinery ▪ Protein can provide a consistent margin uplift of $0.15 per gallon at the base 50 pro
Slide 18: Using Partnerships to further enhance values
Using Partnerships to further enhance values ▪ Exclusive partnership with Novozymes provides the expertise through enzyme and yeast technology to further enhance value by producing feeds that exceed 50% protein content ▪ Optimal Aquafeed partnership focuses on Aquaculture- one of the most sustainabl
Slide 19: Potential for Higher Margins Enhance Opportunity
Potential for Higher Margins Enhance Opportunity J-Curve of Protein Opportunity Gen II Developments • Global demand for analogues that meet specific dietary needs will increase Fishmeal Analogue • Driven by economics, protein 60% Protein $1,200/Ton accessibility, political pressure and social accept
Slide 20: Significant margin potential exists from Project and high-protein technology
Significant margin potential exists from Project 24 and high- protein technology $350 $290 Improvement $300 $230 $250 $150 Improvement $60 $200 (in millions) $150 $150 $150 $100 $80 $50 $80 $80 $0 -$35 -$35 -$35 -$50 LTM EBITDA Project 24 High-Protein Pro-Forma Pro-Forma 12/31/19 Technology EBITDA E
Slide 21: In Closing
In Closing Green Plains is executing a Total Transformation Plan to unlock and capture significant value imbedded in our platform through of cost efficiencies and technological advances in protein that will transform our company over the next 18 to 36 months and help meet the worlds growing need for
Slide 22: Appendix
Appendix | SWZ | . > Green Plains
Slide 23: Green Plains Inc.
Green Plains Inc. | SWZ | . > Green Plains
Slide 24: Selected Operating Data
Selected Operating Data Green Plains Inc. (in thousands) For the three months ended Dec. 31, 2019 Dec. 31, 2018 Ethanol production Ethanol sold (gallons) 239,087 205,115 Distillers grain sold (equivalent dried tons) 633 536 Corn oil sold (pounds) 63,441 53,305 Corn consumed (bushels) 83,444 70,689 A
Slide 25: Consolidated Crush Margin
Consolidated Crush Margin Green Plains Inc. For the three months ended Dec. 31, 2019 2018 2019 2018 (in millions) (per gallon produced) Ethanol production: Operating loss $(31.2) $(51.1) $(0.13) $(0.25) Depreciation and amortization 16.7 14.9 0.07 0.07 Total ethanol production (14.5) (36.2) (0.06) (
Slide 26: Select Balance Sheet Data
Select Balance Sheet Data Green Plains Inc. (in millions, except per share amounts) For the period ending Dec. 31, 2019 Dec. 31, 2018 Cash, cash equivalents and restricted cash 269.9 283.3 Working capital(1) 193.2 308.2 Working capital financing(2) (187.8) (163.8) Working capital, net 5.4 144.4 Net
Slide 27: Condensed Income Statement
Condensed Income Statement Green Plains Inc. (in millions, except per share amounts) For the three months ended Dec. 31, 2019 Dec. 31, 2018 Revenues $715.7 $583.5 Costs and expenses 730.6 480.6 Operating income (loss) (14.9) 102.9 Other expense (2.3) (28.3) Income tax expense (19.5) (14.5) Income (l
Slide 28: Green Plains Partners LP
Green Plains Partners LP | SWZ | . > Green Plains
Slide 29: Selected Operating Data
Selected Operating Data Green Plains Partners LP (in million gallons) For the three months ended Dec. 31, 2019 Dec. 31, 2018 Product volumes Storage and throughput services 240.1 208.0 Terminal services 55.4 57.9 Railcar capacity billed (daily average) 77.7 91.8 Credit Suisse Conference | March 4, 2
Slide 30: Condensed Balance Sheet
Condensed Balance Sheet Green Plains Partners LP (in millions) Assets Dec. 31, 2019 Dec 31, 2018 Current assets $17.4 $16.6 Property and equipment, net 37.4 40.9 Operating lease right-of-use assets 35.5 - Other assets 15.4 23.6 Total assets $105.7 $81.1 Liabilities and Partners’ Deficit Current liab
Slide 31: Consolidated Income Statement
Consolidated Income Statement Green Plains Partners LP (in millions, except per unit amounts) For the three months ended Dec. 31, 2019 Dec. 31, 2018 Revenues $20.3 $23.3 Operating expenses 8.0 7.2 Operating income 12.3 16.1 Interest expense and other (2.0) (2.0) Income tax expense (0.1) - Income fro
Slide 32: Adjusted EBITDA and DCF
Adjusted EBITDA and DCF Green Plains Partners LP (in millions) For the three months ended LTM ended Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Net income $10.4 $14.1 $41.5 Interest expense 2.0 2.0 8.3 Income tax expense 0.1 0.1 0.2 Depreciation and amortization 0.7 1.0 3.4 Transaction costs - 0.5 - U
Slide 33: Production and Utilization History
Production and Utilization History Green Plains Inc. (% of capacity) (mmgy) 400 100% 350 300 80% 250 60% 200 40% 150 100 20% 50 0% - Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Production % of Capacity Production Capacity Credit S
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation Green Plains Inc. (in millions) For the three months ended Dec. 31, 2019 Dec. 31, 2018 Net income (loss) from continuing operations including $(34.5) $60.1 noncontrolling interest Interest expense 8.7 29.1 Income tax expense (benefit) 19.5 14.5 Depreciation and amortization 1
Slide 35: Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com
Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com