Aemetis, Inc · NASDAQ:AMTX
Aemetis — Investor Presentation (February 2017)
30 slides from Aemetis's investor presentation, Feb 2, 2017
Slide 1: Advanced Biofuels
Advanced Biofuels
Slide 2: Forward-looking statements and non-GAAP information
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ
Slide 3: Aemetis is an international renewable fuels and biochemicals company
Aemetis is an international renewable fuels and biochemicals company. Using patented industrial biotechnology, our mission is to convert first generation ethanol and biodiesel plants into advanced biorefineries using waste materials to produce high value products. Traditional Corn Advanced Biofuels
Slide 4: Founded in 2006 by biofuels industry veteran
Founded in 2006 by biofuels Own/operate 60M gallon Owner and licensee of granted industry veteran (co-founder ethanol plant in California - patents on technology to produce Pacific Ethanol and EPM) Largest biofuels refinery advanced biofuels and in the state biochemicals $147M revenue for 2015 Own/o
Slide 5: Management and board
Eric McAfee - Chairman and CEO • Founder of Aemetis (NASDAQ: AMTX) and co-founder of Pacific Ethanol (NASDAQ: PEIX) • Founding shareholder of oil production company Evolution Petroleum (NYSE: EPM) • Founded seven public companies and funded twenty-five private companies as principal investor Todd Wa
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Slide 7: Crude Oil Price is recovering
Crude Oil Price is recovering Source: Macrotrends.Net 7
Slide 8: U.S. Renewable Fuel Standard mandates
In order to meet the federal Renewable Fuel Standard, obligated parties are required to blend ethanol and biodiesel in increasing quantities each year U.S. Renewable Fuel Standard 40.0 “Conventional Biofuels” must reduce greenhouse gas emissions by 20% relative to gasoline or diesel and Billions of
Slide 9: California LCFS Carbon Credit Generation by Fuel Type
Renewable Diesel California LCFS Carbon Credit Generation by 17% Fuel Type, 2011-2015 Ethanol Electricity Renewable Diesel BIO-CNG Biodiesel Ethanol 51% 17% Biodiesel BIO-LNG Fossil CNG Fossil LNG 5% 4% 3% Source of credits through Q1 2014: California Air Resource Board. “Low Carbon Fuel 0% 1%2% Sta
Slide 10: LCFS premium and tax credits
Aemetis Ethanol and Biodiesel plants When Aemetis produces cellulosic ethanol, approved for LCFS pathways in the selling price is about $4.50/gallon January 2016 • LCFS premium is $0.70-$0.80 per gallon India biodiesel plant was approved for low carbon fuel in the CA market. standard (LCFS) pathway
Slide 11: India diesel market size ~25B gallons
6.4% 1.5% 5.0% 4.1% 13.0% 8.9% India diesel market size ~25B gallons 5x bigger than gasoline market 6.4% 3.2% 0.5% $10B diesel subsidy eliminated in October 2014 9.5% 70% Diesel consumption transport and 30% non- 28.2% transport by Market Segment 13 of the 20 most polluted cities in the world Tracto
Slide 12: India biodiesel plant and subsidy elimination
10/2014 08/2015 50 MGY biodiesel and In October 2014, the India In January 2015, the India refined glycerin plant in government eliminated government approved sales by India can produce about about $10 billion of annual $150M revenues at full biodiesel producers directly to subsidies for diesel and
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Slide 14: Migrating to higher margin advanced fuel markets
90-95% 40-50% 60 mgy 10-15% 0% 25-35% 25-30 mgy 35-45% Improve margins by deploying renewable diesel 5-10% 25-35% 60-70 mgy 10+% Aemetis is migrating to higher margin, rapidly growing cellulosic ethanol, distilled biodiesel and renewable jet/diesel fuel markets 14
Slide 15: Ethanol, biodiesel and jet/diesel plant upgrades
Ethanol Plants Biodiesel Plants Jet/Diesel Plants • Steam Turbine (CHP) • Distilled Biodiesel • Advanced Clean-In-Place • ChevronLummus/ARA global • Refined Glycerin technology license for 100% • Liquid CO2/Dry Ice replacement, renewable jet/diesel fuel • Cellulosic Ethanol • Renewable Diesel • Airl
Slide 16: California Ethanol Plant
| CALIFORNIA ETHANOL PLANT \ ie
Slide 17: India Biodiesel and Glycerin Plant
INDIA BIODIESEL AND GLYCERIN PLANT
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Slide 19: R&D lab in Maryland and granted biofuels patents
Aemetis operates an R&D lab in Maryland and holds many granted biofuels technology patents Awarded patents on enzyme and microbe technology 2.5% Cellulosic Scale up to 50% Exclusive license to patented microbes Ethanol from the Cellulosic Ethanol Process converts to produce ethanol from agricultural
Slide 20: Edeniq: founded in 2008
Founded in 2008 Edeniq received $100M in funding to MORE ETHANOL • Starch Accessibility develop patented milling and enzyme FROM CORN • Corn Fiber to Cellulosic technology, increasing starch ethanol • 15-60% More Corn Oil production by up to 4% and cellulosic MORE CORN OIL • Recovered Higher DDG Qua
Slide 21: Integrated platform of feedstock shearing and cellulose enzymes
+ CELLUNATOR Large and small Starch and corn Integrated cellulose particles kernel fiber and traditional ethanol production Integrated platform of feedstock “shearing” and cellulose enzymes Substantially lower capex relative to competitors EPA-approved cellulosic ethanol production up to 2.5% from c
Slide 22: Lanzatech raised more than $200M
Lanzatech, founded in 2005, has raised more than $200M Patents pending 250 Six pilot plants worldwide 2 2 2 Commercial plants being built in Europe and Asia at steel mills BIOMASS Produces CO, Patented microbe Distillation, denaturing, Orchard, hydrogen and produces storage and loadout Vineyard and
Slide 23: Produces 100% replacement fuels: jet fuel, diesel and naphtha
ARA’s CH technology uses water as catalyst to Triglyceride Oils + Water Hydrogen convert vegetable and animal oils into bio- intermediate similar to crude oil Same hydrocarbon types as petroleum Naphtha ReadiJet Chevron Lummus Global’s ISOCONVERSIONTM hydrotreating process saturates residual olefins
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Slide 25: Income Statement
($ in thousands) Income Statement Revenues $141,858 $189,048 $177,514 $207,683 $146,649 Cost of Goods Sold 25 137,216 197,975 159,220 170,539 142,450 Gross Profit/ (Loss) $4,642 ($8,927) $18,294 $37,144 $4,199 Expenses SG&A $8,571 $11,613 $15,275 $12,595 $12,361 R&D 577 620 539 459 447 Operating Inc
Slide 26: Benefits of EB-5 Financing to Aemetis
Received into escrow Released to Remaining in escrow for USCIS approval Aemetis from awaiting release to escrow Aemetis upon USCIS approval Benefits of EB-5 Financing to Aemetis Aemetis signed investors for $36M of EB-5 sub-debt financing at 3% interest rate 4-5 year notes at 3% interest with no pri
Slide 27: Financing plan to repay high cost senior bridge loan
Aemetis’ financing plan is to repay its high cost EPS increase of about senior bridge loan with low cost EB-5 funding and $0.60 based on: funds from operations Interest rate reduction from EB-5 Phase I Status 14% to 3% on $68.5 million - $36 million received or committed into escrow for senior bridg
Slide 28: First generation ethanol is a maturing market generating cash flow
Results LTIM 2014 2015 Revenue ($ in millions) 100% $208 $147 Gross Margin 20-25% 18% 3% Operating Income 15-20% 12% 0% First generation ethanol in the U.S. is a maturing market generating cash flow to fund debt reduction and company growth Aemetis is launching higher-margin products in fast-growing
Slide 29: Investment highlights
Strong Long-term Demand for Biofuels Plants Strategically Located to Serve Large Markets Substantial Upside from Next Generation Technology Experienced Management Team 29
Slide 30: Aemetis
ie AEMETIS www.aemetis.com