Green Plains, Inc. · NASDAQ:GPRE
Green Plains — Jefferies Industrials Conference 2020
22 slides from Green Plains's conference presentation, Aug 5, 2020
Slide 1: Jefferies Industrials Conference Investor Presentation
Jefferies Industrials Conference Investor Presentation August 5, 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: Green Plains Today
Green Plains Today Strategically Located Assets 13 Sustainable biorefineries $2.4 Billion revenue in 2019 11 Millions tons of corn processed annually Billion gallons biofuel production capacity including 1.1 75 million USP grade upon completion 2.9 Million grains tons of distillers 300 Million pound
Slide 4: Second Quarter 2020 Operating Results
Second Quarter 2020 Operating Results Results of Operations ― Net loss of $8.2 million, or $(0.24) per diluted share ― Adjusted EBITDA of $17.9 million ― Cash, cash equivalents and restricted cash of $183.6 million; availability under revolving credit agreements of $289.0 million at June 30, 2020 ―
Slide 5: Business Activity
Business Activity • Sold FCC Grade alcohol to strategic commercial counterparties for the production of hand sanitizer and disinfectants • Announced USP Grade alcohol upgrades at Green Plains York and Green Plains Wood River resulting in a combined capacity of 75 million gallons of USP Grade alcohol
Slide 6: Transforming Green Plains
Transforming Green Plains • Concluded Portfolio Optimization & Strengthened our Balance Sheet – Realized ~ $780 million in proceeds from asset sales over previous six quarters – Debt reduced or deconsolidated by nearly $1 billion – Continue to have strong liquidity position with over $183 million in
Slide 7: Total Transformation Plan
Total Transformation Plan • Our processing plants as biorefineries Green Plains 1.0 Green Plains 2.0 – Use mechanical and enzymatic Products per bushel Products per bushel processes to “crack” a commodity into its most valuable components ~ 2.9 gallons Ethanol ~ 2.9 gallons of biofuel & industrial a
Slide 8: Total Transformation - Project 24
Total Transformation - Project 24 • Project 24 captures our goal to be at or below $0.24 per gallon of operating expenses across the platform Wood River OPEX per Gallon (Illustrative Example) • Developed an exclusive partnership with $0.35 $0.32 ICM for technology that will drive $0.30 operational c
Slide 9: Thesis – World Protein Demand is Growing
Thesis – World Protein Demand is Growing • World demand in protein is growing across every major sector driven by population growth, 2018 economics and availability ASF 338 • Increase protein production 2012 Drought 317 329 332 without acreage expansion Impact 293 302 279 • Installed Fluid-Quip Proc
Slide 10: 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 $0.57/Gallon
Slide 11: Using Partnerships to Further Enhance Values
Using Partnerships to Further Enhance Values • Expertise in enzyme and • Exclusive partnership for • Enogen® corn technology yeast technology Project 24 • Improves efficiency of our • Enhances value by helping • Improves plant operations & biorefineries produce feeds that exceed efficiencies 50% pro
Slide 12: High Protein, High Value, High Quality
High Protein, High Value, High Quality • Strategic ingredient in use today – MSC 50 is an optimal ingredient for aquaculture and companion animal diets – Currently being used in the pet space and in aquafeed mixes – Robust QA / QC program is critical • Nutritional advantage – Base product has 50% pr
Slide 13: Significant Margin Potential Exists From Project 24 and High Protein Technology
Significant Margin Potential Exists From Project 24 and High Protein Technology $350 $290 Improvement $300 $230 $60 $60 $250 Improvement (in millions) $200 $150 $150 $150 $150 $100 $50 $80 $80 $80 $0 Project 24 High-Protein Total Pro-Forma High-Protein High-Protein Technology EBITDA Technology Techn
Slide 14: Completing Protein Expansion
Completing Protein Expansion ⚫ Protein buildout is progressing consistent with our strategy, with Shenandoah complete, and Wood River in development along with $75 million project based debt financing approved ⚫ Margin from the completion of high protein projects can be allocated to self finance fut
Slide 15: Why Green Plains?
Why Green Plains? Strong • Tremendous asset base developed over the past 13 years which serves as the Asset Base foundation for building Green Plains 2.0 Proven Track • Seasoned management team with proven track record of managing risk and Record allocating capital in various cycles • Strong balance
Slide 16: In Closing
In Closing 1 Tremendous base platform to build upon for creating Green Plains 2.0 2 Seasoned management with proven track record of managing risk and allocating capital 3 Strong balance sheet with ample liquidity and numerous levers to manage volatility 4 Executing on Project 24 to reduce operating
Slide 17: Appendix
Appendix TS | . > Green Plains
Slide 18: Sustainability in What We Do
Sustainability in What We Do World class provider of Transforming capabilities and expanding impact sustainable, high protein and novel feed ingredients, and low carbon, closed loop and sustainable biofuels Help meet global renewable transportation fuel needs Provide less expensive, renewable biofue
Slide 19: Tailwinds in Washington Regulatory Policy
Tailwinds in Washington Regulatory Policy 2020 Renewable Volume Obligations EPA Delivers On President Trump’s Promise To Allow Year-Round Sale Of E15 Gasoline And Improve • 15 billion gallons = 15 billion gallons Transparency In Renewable Fuel Markets • Continue to watch EPA after 10th Circuit (WASH
Slide 20: Tailwinds Driving Demand Through Higher Blends
Tailwinds Driving Demand Through Higher Blends ▪ E15 sold in 30 states at 2,194 retail stations as of June, 20201 ▪ Expect 2,350 sites by the end of 20201 ▪ $100s of millions of USDA infrastructure funding to accelerate rollout ▪ EPA reviewing E15 through E10 infrastructure and labeling ▪ Automakers
Slide 21: Tailwinds Expanding Export Markets
Tailwinds Expanding Export Markets Biofuel Exports Biofuel Exports 2,000 (million gallons) • Cleaner air, higher octane 1,500 • Anticipate 1.1 - 1.5 billion gallons of exports in 2020 without China demand 1,000 • Brazil and Canada accounted for ~45% 500 of exports - 2016 2017 2018 2019 2020 Est • Ch
Slide 22: Green Plains Inc. | NASDAQ: GPRE
Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com