Xcf Global, Inc. · NASDAQ:SAFX
Xcf Global — Focus Impact BH3 Acquisition — SPAC Merger (January 2025)
33 slides from Xcf Global's SPAC merger presentation, Jan 23, 2025
Slide 1: Flying Clean with Sustainable Aviation Fuels Investor Presentation
FLYING CLEAN WITH SUSTAINABLE AVIATION FUELS INVESTOR PRESENTATION / JANUARY 2025
Slide 2: Disclaimer
DISCLAIMER 10 This presentation and any accompanying oral presentation (this “Presentation”) is provided for information purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Focus Impact BH3 Acquisiti
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 10 This Presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may”, “sh
Slide 4: Forward-Looking Statements (Cont'd)
FORWARD-LOOKING STATEMENTS (CONT’D) 10 Industry and market data used in this Presentation have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. Neither XCF nor Focus Impact has independently verified the data contained fro
Slide 5: Forward-Looking Statements (Cont'd) - Use of Projections
FORWARD-LOOKING STATEMENTS (CONT’D) 10 Use of Projections (Continued) The projected financial results reflect numerous assumptions, including assumptions with respect to general business, economic, market, regulatory and financial conditions, and various other factors, all of which are difficult to
Slide 6: Forward-Looking Statements (Cont'd) - Participants in the Solicitation
FORWARD-LOOKING STATEMENTS (CONT’D) 10 Participants in the Solicitation Focus Impact, NewCo and each of their directors, executive officers and other members of management may be deemed to be participants in the solicitation of proxies of Focus Impact’s stockholders in connection with the Business C
Slide 7: Focus Impact BH3 Acquisition Co. Investing in Socially Forward Companies
FOCUS IMPACT BH3 ACQUISITION CO. INVESTING IN SOCIALLY FORWARD COMPANIES Focus Impact BH3 is a SPAC sponsored by Focus Impact Partners with a vision of bringing a great company that is creating a positive impact for the world to the public markets to accelerate its growth Focus Impact Partners is an
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS Strong Regulatory and Market Tailwinds for Sustainable Fuels Shift in customer sentiment and new regulatory policies in the US and Europe provide massive tailwinds for both SAF supply and demand, driving a need for additional plants Early Mover Advantage Expect to be positioned
Slide 9: Experienced Management Team
Gregg Surette Interim Chief Strategy Officer Greg Savarese Interim Chief Marketing Officer Randy Soule 3rd Party Operations Partner, Head of Engineering, Procurement and Construction EXPERIENCED MANAGEMENT TEAM XCF has assembled a world-class management team with decades of experience, a strong trac
Slide 10: XCF Global at a Glance
XCF GLOBAL AT A GLANCE XCF Global Capital intends to be a leading producer of sustainable aviation fuel in North America XCF has entered into a merger agreement with New Rise, which owns and operates the production facility that will produce Sustainable Aviation Fuel (SAF) and an adjacent property i
Slide 11: Aviation's Disproportionate Impact
AVIATION’S DISPROPORTIONATE IMPACT(1) Aviation’s share of global energy-related CO2 emissions has grown faster in recent decades than rail, road or shipping(2) International Aviation: 145.8% International Shipping: 33.8% Domestic Transport: 23.8% Land Use and Forestry: 18.4% Agriculture: (21.5%) Res
Slide 12: What Is Sustainable Aviation Fuel?
WHAT IS SUSTAINABLE AVIATION FUEL? SAF is synthetic kerosene derived from non-food feedstocks such as waste oils and fats, green and municipal waste and non-food crops SAF is able to recycle CO2 absorbed by biomass during its lifetime rather than injecting new carbon into the system, reducing emissi
Slide 13: Aviation Industry Working Toward Decarbonization
13 AVIATION INDUSTRY WORKING TOWARD DECARBONIZATION IATA “Climate Change Fact Sheet” International Civil Aviation Organization (“ICAO”) “On Board A Sustainable Future” ICAO “Long Term Aspirational Goal for International Aviation” Company websites; www.sciencebasedtargets.org, “Target Dashboard” Airl
Slide 14: SAF: Fueling Green Aviation
14 SAF: FUELING GREEN AVIATION 35.2% eVTOL 3.0% Hybrid Aircraft 20.7% Electric Aircraft 1.3% Hydrogen Technology 39.7% Sustainable Aviation Fuel $7.4B Total Investments SHARE OF EQUITY INVESTMENTS INTO GREEN AERO TECH COMPANIES BY VERTICAL(2) “SAFs are the only viable near-term option to decrease em
Slide 15: XCF's Full Suite of Capabilities
XCF’S FULL SUITE OF CAPABILITIES XCF is bringing together a wide range of capabilities to become a leading SAF producer and building a strong foundation for continued expansion Growing Operating Base 17 Reliable, Proven Technologies Versatile Feedstock Base Financing License agreement in place with
Slide 16: Combine Onsite Feedstock Pretreatment with HEFA Technology
COMBINE ONSITE FEEDSTOCK PRETREATMENT WITH HEFA TECHNOLOGY XCF facilities employ a two-stage process to production, adding a pretreatment stage prior to hydrotreatment Hydroprocessed Esters and Fatty Acids (“HEFA”) HEFA technology involves converting fats, oils and greases (FOGs) into a high-quality
Slide 17: Reliable and Proven Hydrotreating Technology
RELIABLE AND PROVEN HYDROTREATING TECHNOLOGY New Rise’s hydrotreating technology increases yield, lowers operating costs and allows for feedstock flexibility License agreement between New Rise Renewables and Axens Standard for evaluating which technologies, under specific circumstances and character
Slide 18: Long-Term Agreement with World-Class Partner
Supply & Offtake Agreement 15-year contract term Well-known Fortune 50 company Stable feedstock supply Visibility on offtake LONG-TERM AGREEMENT WITH WORLD-CLASS PARTNER XCF has partnered with Phillips 66, an established Fortune 50 company who will supply 100% of the non-food feedstock and is the pr
Slide 19: Favorable Regulatory Environment
19 FAVORABLE REGULATORY ENVIRONMENT U.S. Environmental Protection Agency (EPA), D4 RIN = Renewable Identification Number for biomass-based feedstock California Air Resources Board (CARB); weekly average transfer price Internal Revenue Service For facilities that satisfy the prevailing wage and appre
Slide 20: Governments Are Setting Targets to Use SAF
20 GOVERNMENTS ARE SETTING TARGETS TO USE SAF Governments around the world are setting targets to use Sustainable Aviation Fuels Sustainable Aviation Fuel Act(1) Targets 35% lower emissions by 2035; net zero by 2050 Mandates EPA to set low carbon standard for fuels Renewable Fuel Standards(2) Sets a
Slide 21: XCF Is Ahead of Its Competition
21 XCF IS AHEAD OF ITS COMPETITION XCF holds a strategic early-mover advantage, with operations ready to launch and a proven design that can be replicated across the nation Source: Company filings, press releases and XCF management Map Legend Status Sites Operational 5 Under Construction 5 Proposed
Slide 22: Summary Financial Projections
22 SUMMARY FINANCIAL PROJECTIONS SAF production facility at Reno, Nevada(4) expected to begin commercial production in Q1 2025 Adjacent SAF production facility to be developed and projected to begin operations in Nevada around 2026, with Florida and North Carolina plants projected to be converted by
Slide 23: Multiple Levers for Continued Growth
23 MULTIPLE LEVERS FOR CONTINUED GROWTH OPERATING BASE EXPANSION Identify, acquire and convert additional sites into XCF SAF production facilities using XCF’s Nevada site as a design blueprint DECARBONIZATION SOLUTIONS Carbon capture, utilization and storage could decarbonize our platform and lead t
Slide 24: Efficient Site Development with Attractive Returns
24 $272 ($25) ($180) ($120) $174 $247 $258 $265 $3,032(3) $3,923 $3,822 1 2 5 6 7 8 Illustrative Returns on Investment(1) EFFICIENT SITE DEVELOPMENT WITH ATTRACTIVE RETURNS Repeatable Site Development Process Repeatable process for: Land Acquisition and Site Development Obtaining Permits and Approva
Slide 25: XCF's Public Peer Universe
Key players competing in the drop-in renewable fuels space Some players are either developing new technologies that are not producing at commercial scale or have traditional refinery as a core business The different business models and cash flow visibility may impact investor views on valuation XCF’
Slide 26: Peer Benchmarking – Valuation Metrics
PEER BENCHMARKING – VALUATION METRICS EV / 2025E Revenue Multiple(1) Renewable Diesel / SAF Producers Renewable Natural Gas and Other Biofuels Producers Source: FactSet as of 01/17/2025 Note: 'NM' denotes multiples that are greater than 100x or that are based on a negative denominator (1) Multiples
Slide 27: Transaction Overview
27 TRANSACTION OVERVIEW PF Shares Outstanding (M) 156.8 Share Price ($) $10.00 PF Equity Value ($M) $1,568 (+) PF Debt ($M) $266 (-) PF Cash ($M) ($6) PF Enterprise Value ($M) $1,829 Transaction Highlights Sources & Uses Pro Forma Valuation Pro Forma Ownership Deal Structure Existing XCF shareholder
Slide 28: Appendix
APPENDIX
Slide 29: SAF Offtake Agreements in 2024
SAF OFFTAKE AGREEMENTS IN 2024(1) Purchaser Fuel Producer Announcement Date Total Offtake Volume (M Gallons) Term of Offtake Agreement Commentary November 27, 2024 1.1 HSBC, Cathay Pacific and EcoCeres partner for major sustainable aviation fuel initiative in Hong Kong November 27, 2024 49.5 MOU for
Slide 30: SAF Offtake Agreements in 2024
SAF OFFTAKE AGREEMENTS IN 2024(1) Purchaser Fuel Producer Announcement Date Total Offtake Volume (M Gallons) Term of Offtake Agreement Commentary April 21, 2024 First SAF supplied in Canada by Shell Aviation Uses Avelia, blockchain-powered digital SAF Book-and-Claim Various Various April 17, 2024 50
Slide 31: Risk Factors
RISK FACTORS 31 Certain factors may have a material adverse effect on our business, financial condition and results of operations. If any of the following risks actually occur, either alone or in combination with other events or circumstances, our business, financial condition, results of operations
Slide 32: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) 31 We face competition from established SAF producers and expect additional competition from new entrants currently developing SAF production facilities and possible additional entrants in the future, many of whom have greater resources and experience than we do. Future entrant
Slide 33: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) 31 Inflation may adversely affect our profitability by increasing our costs. Natural or man-made disasters, social, economic and political instability, pandemics, epidemics or other disease outbreaks, and other similar events may significantly disrupt our and our customers’ bus
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