Gevo, Inc. · NASDAQ:GEVO
Gevo — Investor Presentation (August 2018)
33 slides from Gevo's investor presentation, Aug 30, 2018
Slide 1: Overview of Plans for Luverne
2% gevo’ Overview of Plans for Luverne Patrick Gruber, CEO August 2018
Slide 2: Forward Looking Statement
Forward Looking Statement %% gevo’ Any statements in this presentation about our future expectations, plans, outlook and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions, constitute forward-looki
Slide 3: Quick Summary
Quick Summary %% gevo’ ®t The Problem: — Fossil fuels emit fossil greenhouse gasses (GHGs) — Companies want to mitigate liability — Governments want to reduce GHG emissions — Consumer's care about pollution and want GHGs addressed ®t The Solution: — "Decarbonize”. Lower the carbon footprint of fuels
Slide 4: The Problem and Solution
The Problem and Solution %% gevo’ The Problem: Burning of Fossil Carbon Sources Generates Increased GHGs ‘Atmospheric CO2 Transportation fuels, ‘electricity generation, heat, ‘chemical production, ‘manufacturing, etc. The Solution: Decarbonization + By eliminating both fossil carbon from both raw ma
Slide 5: Aviation expected to experience strong growth
; “ee y #% gevo’ They are expecting to experience strong growth.... ® The aviation industry is expected to double in passengers over the 20 years to 2034 ® The aviation industry accounts for 2% of GHG emissions (about the same as all of Germany), but it is expected to grow to 3% by 2050 But, they ha
Slide 6: Coming Changes...
Coming Changes... %% gevo’ = Fhe New ork Gimes a TheNewPerk Times —iovnyensaovsves ay eA 08 Jets Will No Longer Get a Free Ride on Carbon U.N. Agency Proposes Limits on Airlines’ Emissions Carbon Emissions Ce) Re Se Oa ‘After mpre than sityearsof negotiations the gba aviation industry agreed on ‘Mon
Slide 7: "Decarbonize" and Capture Added Value
“Decarbonize” and Capture Added Value %% gevo’ Produce and Sell Fuels, Chemicals, Protein with Gevo Technology, while lowering “carbon score” or “carbon index”. The lower the score, the the higher the price Gevo can charge in certain markets How to Reduce Carbon in Hydrocarbons Replacing fossil base
Slide 8: Gevo's proprietary technology: isobutanol to hydrocarbons
: renewable \ Jet Fuel Via Via renewable renewable Butylene pXylene | autenes:218 gations (N° Pes _ Va renewable —_——- IBA wt © IBa-derived "Drop in” Hydrocarbons Gevo's proprietary technology uses a biocatalyst made with synthetic biology to produce isobutanol (IBA), then converts the IBA using a c
Slide 9: Gevo Technology and Products Address the Problem
Gevo Technology and Products Ca " Address the Problem #% gevo We Make and Sell Low Carbon Renewable High Performance Fuel Products High Performance Oxygenate Blendstocks for Gasoline (Ethanol and Isobutanol) Fully Renewable Isooctane for Gasoline Fully Renewable Jet Fuel Jet Fuel and Isooctane Plant
Slide 10: Adding Value With Gevo Products
Adding Value With Gevo Products % gevo’ Gevo By Decarbonizing.... Gross Seling Price Gevo ite RNs va : eURED nate Mandates on { “Strategic Value” By delivering technical In some cases, Gevo can simply properties that are more win on price... valued... Technical Vale Market Price of Petro- Based Prod
Slide 11: Key Deals
Key Deals %% gevo’ ®& Ethanol - Eco-Energy ec6-enelgy + Markets and Distributes Gevo ethanol ® Isobutanol — Musket blends IBA-off-take agreement signed + Blend IBA into gasoline and distributes it - — Bucc ee’s is developing retail market in Houston MUSKET, + Expanded from 2 to ~200 pump in 2017 ® J
Slide 12: Customers of Gevo Products
Customers of Gevo Products %% gevo’ Halt (0Gies""" © Lufthansa a @ MUSKET Qasr Ry wy Y. Tora Mansfield UNITED (usar US.ARNY \ A australia CATHAY PACIFIC re) Pe eee Ainwas airbp s 3 i K95REAN AIR *7) 7 ay ulf hydrocarbon ae ATLAS AIR oe Gulf}? 5 WORLOWIDE ‘The customers on this side re az
Slide 13: It works, we are making it, and selling it
® It works, we are making it, and selling it ® Low carbon and clean (low sulfur, low aromatics, low olefins) tz 2 Torac #% gevo Cert () Haltermann Carless ‘ate of Analysis Product Code: 1BF007 Product Description: Renewable Isooctane Lot Number F07S#33001 ‘Manufacture Date B/is/2016 Tested By rnc ra
Slide 14: Low Carbon Isooctane
%% gevo’ Low Carbon Isooctane Gevo is the only company to date with a proven technology to produce larger quantities of renewable isooctane Speciaty properties add value to specialty fuels (ke racing fuels) Low carbon isooctane could substitute for gasoline, and can be cost competitive Gevo isooctan
Slide 15: Proven: In planes, ground equipment, and infrastructure
az gevo" Proven, we've done it: In Planes, ground equipment, and in the Infrastructure rs, Power, In partnests bes Gevo Jet Fuel Meets ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) -No Sulfur - -No Aromatics -Lower Freeze Point >-80°C G R = = N -Hi
Slide 16: Jet Fuel from Isobutanol
Jet Fuel from Isobutanol %% gevo’ ®% Potentially competitive with fossi based jet Value ® Jet fuel from isobutanol has higher energy density, lower particulates, lower Sulphur, and Proposition lower fossi carbon than petro-jet Helps aiines and other carriers meet the industry goals of zero increased
Slide 17: Isobutanol for gasoline
% Isobutanol can replace ethanol resuting in a higher performing gasoline blend (higher energy, Value no water separation issues, no incompatibility issues) Proposition % Isobutanol enables “ethanol free” gasoine markets at prices that end customers wil pay % IBA\s the only atemative avaiable in the
Slide 18: Plan for Revenue Growth
% gevo’ Plan for Revenue Growth’ Projected 2018 Projected 2020 TBD/202? TBD Value added Expand Luverne products and to produce IBA, lower fossil Jet Fuel, and energy at Isooctane Future large IBA plant with 26MGPY hydrocarbons Luverne Product Capacity Revenue Capacity Revenue? Capacity Revenue? Capa
Slide 19: Key Points
Key Points %% gevo’ ® The value of Low Carbon Products is expected to continue to increase ® We expect Low Carbon Ethanol to reduce our cash burn (GSA&RD) over the next two years, potentially even becoming profitable on a Cash EBITDA! basis, depending on spend needed for IBA and Hydrocarbons ® We ex
Slide 20: Slide 20
Slide 21: Isobutanol/Ethanol Plant and Renewable Hydrocarbon Plant
Isobutanol/Ethano! Plant Renewable Hydrocarbon Plant South Hampton Products Sold ~100 Million Ibs per year «3 Millionlbs «.01.5MGPY ~20MGPY 35KGPY ~35KGPY of animal feed per year IBA EtOH Jet Isooctane Approximate capacities industrial corn oil °
Slide 22: Current Business System
Current Business System Total Gevo Revenue: $34-37M/yr (2018 Projected*) *% Selling — Ethanol — Isobutanol — Jet Fuel — Isooctane — Animal Feed ~All revenue projections are estimates and subject to change, =*For Silsbee, we currently are using IBA from inventory producedin 2017. %% gevo’ EtOH Capaci
Slide 23: Current Business System
Current Business System Potential to improve margins and a) mitigate burn, and b) generate profit, over the next few years IBA capacity is too small, and needs to be built out to economic capacity. Current system is useful for seeding the market. =*For Sisbee, we currently areusing IBA from inventor
Slide 24: Road Map to Scale: Set up Luverne for Low Carbon
Road Map to Scale: Set up Luverne for Low Carbon, then Build Out IBA/Hydrocarbons % gevo [Combined Heat and Power Hydrocarbon Plant Ay Anaerobic Digestion Bar <a 4 4 _§ — “= | _ = = = ~ y ee ~200 Million Ibs per year = ~6 MillionIbs_ | ~1-3MGPY ~8MGPY ~2MGPY ~20-26 MGPY of high protein feed and per
Slide 25: Road Map to Scale: Step 1
Road Map to Scale: Set up Luverne for Low then Build Out IBA/Hydrocarbons m% Fevo’ STEP 1: + Implement Low Carbon Infrastructure and Dry Frac, Resulting in Total Revenue: $40-60 M/yr (Projected) in 2020 + Use Increased Margin to Mitigate Burn while we develop the IBA and hydrocarbons business + Secu
Slide 26: Step 2: Build-out IBA and hydrocarbons
Step 2: + Build-out IBA and hydrocarbons Road Map to Scale: Set up Luverne for Low Carbon, then Build Out IBA/Hydrocarbons Produce and sell low carbon: ethanol, IBA, hydrocarbons and animal feed, protein, and food grade oil + Total Projected Revenue: $85-123M/yr Timing Depends on timing of enough so
Slide 27: Business Models for IBA and Hydrocarbons
Business Models for IBA and Hydrocarbons %% gevo’ Build Out Strategies Side-by-Side at Luverne validates the model of isobutanol/ethanol co-production Add value to existing Ethanol Plants by adding IBA production Retrofit Opportunities exist to completely retrofit and transform underperforming ethan
Slide 28: Investment Highlights
Investment Highlights %% gevo’ ®t Attractive Market Opportunities: -— Jet Fuel — Gasoline — Multiple petrochemical market segments ®t Growing Revenue Base: - 2017 = $27 Million — 2018 (Projected) = $34-37 million ®t Strong Financial Position: = Cash: $40.3 million (7/31/2018) = Debt: 2020 Notes = $1
Slide 29: Thank You
THANK YOU a gevo
Slide 30: Gevo Summary Overview
Gevo Summary Overview Business Overview ity Overview * = * * ae Headquarters: Englewood, CO Founded: 2005 Employees: ~50 (20 in Denver, 30 in Luverne) Proprietary technology position (patents and know-how) for the production of isobutanol and hydrocarbon fuels and chemicals Technologies work Produce
Slide 31: Balance Sheet
Balance Sheet %% gevo’ ‘Assets ‘Caren assts: ‘Cash and cash equivalents ‘Accounts receivable levenories Prepaid expenses and other cures! asets “Total curent assets Property plant and equipment, net Deposits and other asets ‘Total anes Lisbitites ‘Caren abilities: “Accounts payable and acerued iblti
Slide 32: Income Statement
Income Statement (in thousands) Revenue and cost of goods sold Ethanol sales and related products, net Hydrocarbon revenue Grant and other revenue Total revenues Cost of goods sold Gross loss Operating expenses Research and development expense Selling, general and administrative expense Total operat
Slide 33: Capitalization
Capitalization %% gevo’ ®& Cash (7/31/2018): * $40.3 million * Debt: * 2020 Notes (Whitebox): $13.64 million principal *% Common Shares (7/31/2018): * =8.1 million ® Warrants * 58,974 Warrants outstanding - 4,326 @ $4.20/share strike price - 14,088 @ $40.00/share strike price - 40,560 @ >$100/share