Jatcorp Ltd · ASX:JAT
Jatcorp — Jatoil — Shareholder Meeting (November 2008)
40 slides from Jatcorp's shareholder meeting presentation, Nov 17, 2008
Slide 1: 2008 in review
For personal use only 2008 in review Dr Mike Taverner Executive Chairman JATOIL LIMITED SYDNEY, AUSTRALIA
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by Jatoil Limited to provide existing and prospective shareholders in Jatoil Limited with an update. Any statements, opinions, or other material contained in this document do not constitute any commitments, representations or warrantie
Slide 3: Jatoil Ltd
Jatoil Ltd For personal use only Jatoil is a sustainable global business producing renewable fuels with social & environmental responsibilit y.
Slide 4: 2008 Operational Highlights
2008 Operational Highlights For personal use only
Slide 5: Jatoil development
Jatoil development For personal use only • Incorporated January 2006; • Capital raised on business plans November 2007 • Listed on the Australian Stock Exchange January 2008
Slide 6: Our IPO experience
Our IPO experience For personal use only • Timing • A story for the times • No institutional investor • Lots of small investors • Market slump but now stable • Sufficient capital to implement business plans
Slide 7: Jatoil HQ - Sydney
For personal use only JATOIL HQ - SYDNEY
Slide 8: Global Biodiesel Potential Production from Jatropha
Global Biodiesel Potential Production from Jatropha For personal use only Estimates on – currently planted / planned plantings – Units in million GPY biodiesel THE SUB-TROPICS China 1,760 / Africa 10,600 Americas THE TROPICS50 / 510 / 970 India 18,500 SE Asia 600 / 270 / 2,400 19,400 THE SUB-TROPICS
Slide 9: For personal use only
For personal use only
Slide 10: Energy: Renewable, Clean Energy
For personal use only Energy } Renewable, Clean Energy
Slide 11: Financial Highlights
Financial Highlights For personal use only • Finished the financial year with >$10 million current assets. • In the first 4 months of current financial year, our monthly expenditure has averaged <$130,000. • Our business model provides the flexibility respond to changed conditions (scale up or down
Slide 12: Fundamentals still strong for investment into biofuels
Fundamentals still strong for investment into biofuels For personal use only •High costs of fossil oil importation. •Demand underpinned by national mandates and market grow th. •Biofuels can be easily integrated into existing markets
Slide 13: Globally, biofuels are expected to represent a niche, but material opportunity
Globally, biofuels are expect ed to represent a niche, but material opportunity For personal use only PRIMARY ENERGY SUPPLY By 2010: •bioethanol might meet 4% of global gasoline demand, •biodiesel about 1% of diesel demand. •Penetrati on in Asia is significantly lower OIL ~2020 Biofuels Target? Size
Slide 14: There is increasing interest in jatropha oil
There is increasing interest in jatropha oil For personal use only
Slide 15: There is increasing interest in jatropha oil
There is increasing interest in For personal use only jatropha oil
Slide 16: Jatropha is a preferred feedstock
Jatropha is a preferred feedstock For personal use only Conclusions from global market study*: •Jatropha is on the move on large scale – expect investme nts of >$1bn annually in the years to come •Jatropha can be made sustainable – if the right models are chosen •Need to support research and the dev
Slide 17: Jatoil development is based on
Jatoil development is based on: For personal use only • Our investments into jatropha businesses – Jatoil mandated to engage jatropha biodiesel projects and businesses for development and co-investment • Our ability to attract investors in order to grow these jatropha businesses – Jatoil focused on
Slide 18: What do we look for in project selection?
What do we look for in project For personal use only selection?
Slide 19: Key features of Jatoil's business model
Key features of Jatoil’s business For personal use only model: • Secure access to CJO that is both affordable and certifiable for social & environmental sustainability • Advanced value chain planning • Advanced supply chain development (preferably with long term supply chain partners) • High standar
Slide 20: Jatoil Structure & Investment Strategy
Jatoil Structure & Investment Strategy For personal use only Corporate Level JAT Alliance partners Country Level JV 1 JV 2 JV3 Jat-Venture Level
Slide 21: Corporate
Corporate Jatoil Corporate Country JV For personal use only Jat-Venture • Conduit for further development and delivery of renewable energy technologies • Platform for capital raising • Vehicle for international collaboration • Service subsidiaries and JVs: – loan & finance facilities – business plan
Slide 22: Approach to Joint Venture Investment
Corporate Approach to Joint Venture Country JV For personal use only Investment Jat-Venture What we look for What we avoid • Deep local knowledge and • Unproven managers networks • Unrealistic projections • Competent managers • Unproven business • Sensible business models concepts • Realistic pricin
Slide 23: Jatoil Structure & Investment Strategy
Jatoil Structure & Investment Strategy For personal use only Corporate Level JAT Alliance partners Country Level JV 1 JV 2 JV3 Jat-Venture Level
Slide 24: Jat-Venture project structure - 3-stage process
Corporate Jat-Venture project structure Country For personal use only – 3-stage process Jat-Venture Stage 1 Stage 2 Stage 3 Infra- 5,000ha 25,000ha structure
Slide 25: Project Stage 1
Project Stage 1 1 For personal use only • Agri-station that both proves the business concept and develops essential infrastructure for growth – Central office and warehouse – Model jatropha plantation – Plant Nursery – Seed processing facilities – Refinement of jatropha varieties and associated agro
Slide 26: Project Stage 2
Project Stage 2 2 For personal use only • Stage 2 expansion proves commercial scale jatropha production – Contract farming within the region of the agri-station; – Up to 5,000 ha developed in 2 year period; – Agri-station now also a centre for seed collection, processing and possible refining; – Loc
Slide 27: Project Stage 3
Project Stage 3 3 For personal use only • Stage 3 commercial expansion to optimum scale of production – Contract farming increasing from 5,000ha to 25,000ha in 4 years – Agri-station expanded and/or additional processing capacity developed – Satellite centres established – Maturity of field within y
Slide 28: Indicative Jat-Venture Project Metrics
Indicative Jat-Venture Project For personal use only Metrics Base case parameter Value Target oil production 40,000 ton per annum Plantation area 25,000 ha over 4 years Seed yield at maturity 5 ton per ha Oil recovery 30% Seed cost $100 per ton CJO price $650 per ton Carbon price Not included Capita
Slide 29: Indicative Jat-Venture Project Economics
Indicative Jat-Venture Project For personal use only Economics Value per litre (USD) Revenue $0.79 Seed purchase $0.31 Processing $0.14 Administration $0.02 Total expenses $0.48 Gross margin 39.2% IRR 31.4% Revenue Year 1 EBITDA positive Year 3 Cash flow positive Year 5
Slide 30: Jatoil structure
Jatoil structure For personal use only Corporate Level Jatoil Ltd Alliance partners Sydney Country / Regional Level PT Biodiesel Austindo GreenEnergy Biofuels Newco Indonesia Vietnam Alliance partners Alliance partners NT BT HB Jat-Venture – Stages 1, 2 & 3
Slide 31: Project pipeline – risk mitigated
Project pipeline – risk mitigated For personal use only Crude Jat Oil JV Stage 1 Stage 2 Stage 3 Production Go/no-go gates Agri-station & Test stations Commercial viability Plantation Scale (up to 100 ha) (up to 5,000 ha) (25,000 + ha) Indonesia PT Biodiesel Austindo Vietnam GreenEnergy Biofuels Jat
Slide 32: GreenEnergy Vietnam Biofuels JSC
GreenEnergy Vietnam Biofuels JSC For personal use only • Jatoil Ltd and GreenEnergy Biofuels Joint Venture Agreement – May 2008 • First projects approved by Vietnamese Provincial People’s Committees • Platform for future raising – Competent local management – Test viability before major expansion/in
Slide 33: Meaningful Global Biofuel Collaborations
For personal use only GreenEnergy, Vietnam Meaningful Global Biofuel Collaborations SNV • Dutch Development Agency Center for Biotechnology in Forestry • Promote WWF Sustainable Guidelines • Research arm of Vietnamese Ministry of Agriculture • Win/win business practices • Lead agency for jatropha po
Slide 34: GreenEnergy Vietnam JSC
GreenEnergy Vietnam JSC G. For personal use only A measured, long term approach with deep governmental collaboration and extensive R&D. Focus is on preparing f or expansion: planting material, methodologies and planting partners (i.e., Cost Centers).
Slide 35: GreenEnergy's Roll-out Plan
“Gi Green Energy 4 Renewable, Clean Energy sofas ek ii > x * On the Ground Activities - Rag eck Sy a GreenEnergy’s Roll-out Plan Ze Oe FEN GCA EO 5 ame | Three Agro-stations and Fourteen Trial- Gee? stations in Promising Provinces as VaR PNG = Epicenters for Expansion ee xe The stations’ purposes: —
Slide 36: Aiming to engage supply chain partners into Oil Fields
Aiming to engage supply chain partners into Oil Fields For personal use only
Slide 37: For personal use only
For personal use only
Slide 38: Jatropha intercropped with peanuts
For personal use only Jatropha intercropped with peanuts Planted in May 2008 – fruiting in Sept!
Slide 39: Looking forward to 2009
Looking forward to 2009 For personal use only
Slide 40: Looking forward …
Looking forward … For personal use only • Jatoil Corporate – International collaboration / partnerships – Strategic partnerships and investment – Business expansion • GreenEnergy Vietnam – Expansion – Strategic investors – Commercial production • Other opportunities – New opportunities for acquisiti