Green Plains, Inc. · NASDAQ:GPRE
Green Plains — Stephens Annual Investment Conference 2020
28 slides from Green Plains's conference presentation, Nov 18, 2020
Slide 1: Stephens Conference Investor Presentation
Stephens Conference Investor Presentation November 18, 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: Reinventing Green Plains
Reinventing Green Plains Refining our Platform – Building for Growth Deleveraged our platform through Portfolio 1 Optimization; improving operating costs and carbon footprint through Project 24 Focusing on growing demand in the global protein 2 market and value added ingredients Executing on our Tot
Slide 4: 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 5: Third Quarter 2020 Operating Results
Third Quarter 2020 Operating Results Results of Operations ― Adjusted EBITDA of $8.8 million ― Cash, cash equivalents and restricted cash of $182.3 million; availability under committed loan facilities of $349.8 million at Sept. 30, 2020 ― Total debt of $526.0 million, including $115.4 million of Gr
Slide 6: Business Activity and Updates
Business Activity and Updates • Announced an exclusive partnership with Hayashikane to focus on delivering nutritious and innovative aquafeed solutions • Closed on $75 million,15-year delayed draw term financing with MetLife to fund continued expansion of ultra-high protein technology • Closed on th
Slide 7: Transforming Green Plains
Transforming Green Plains • Concluded Portfolio Optimization & Strengthened our Balance Sheet – Realized ~ $860 million in proceeds from asset sales – Debt reduced or deconsolidated by nearly $1 billion – Continue to have strong liquidity position with over $182 million in cash plus $80 million from
Slide 8: Portfolio Optimization
Portfolio Optimization Portfolio Optimization Strategy will optimize our platform and drive shareholder value • Divest select assets that are undervalued by the market or do not fit our protein and export strategy • Significantly reduce leverage and our overall debt; refining and processing assets s
Slide 9: Monetize non-strategic assets for reinvestment
Monetize non-strategic assets for reinvestment Green Plains Enters into Agreement to Sell Three Ethanol Plants to Valero Renewable Fuels • ~$860 million in proceeds from divestments (Omaha, Neb, Oct 10, 2018) • Fleischmann’s Vinegar Company Green Plains Announces Agreement to Sell – Purchased for $2
Slide 10: Reduce operating costs and controllable expenses
Reduce operating costs and controllable expenses • Non strategic assets either sold or closed Green Plains Announces Permanent Closure of Hopewell, Va. Ethanol Facility – Fleischmann’s, Various Ethanol Plants, JGP Terminal, Green Plains Cattle (Omaha, Neb, Nov 15, 2018) – Hopewell site closed • Over
Slide 11: 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 12: Reduce leverage, strengthen balance sheet and support our share price
Reduce leverage, strengthen balance sheet and support our share price • Debt Reduction Green Plains Repays $500 Million Senior Secured – $500 million Term Loan B Repaid in Nov. 2018 Term Loan due 2023 using proceeds from asset sales – $500 million Cattle revolver removed from balance (Omaha, Neb, No
Slide 13: Align Assets Around Ultra-High Protein and Novel Ingredients
Align Assets Around Ultra-High Protein and Novel Ingredients • Formed JV and later acquired Optimal Green Plains and Optimal Fish Food Announce Formation of Aquafeed Joint Venture Aquafeed (Omaha, Neb, Dec 12, 2018) – Aquaculture is a key market for utilizing ultra-high protein – Aqualab in Shenando
Slide 14: 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 15: 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, economics and availability 2018 ASF • Increase protein production 341 350 2012 329 without acreage expansion 326 Drought 316 Impact 302 293 • Installed Fluid Quip Tech
Slide 16: Potential for Higher Margins Enhance Opportunity
Potential for Higher Margins Enhance Opportunity J-Curve of Protein Opportunity • Global demand for analogues that Gen II Developments 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 17: 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 18: 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 19: Path to 2024 Baseline EBITDA prior to Ethanol Economics
Path to 2024 Baseline EBITDA prior to Ethanol Economics $305 - $400 $400 $295 - $385 $350 $300 $225 - $290 $150 - $210 $140 - $195 $250 (in millions) $70 - $100 $200 $149 - $185 $19 - $27 $150 $75 - $110 $75 - $110 $75 - $110 $62 - $90 $100 $50 $68 $80 $80 $80 $0 2021 2022 2023 2024 P24 USP Base $1.
Slide 20: 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 21: 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 22: Appendix
Appendix TS | . > Green Plains
Slide 23: Green Plains Biofuels = Cleaner, Greener Planet
Green Plains Biofuels = Cleaner, Greener Planet 857 Million Gallons of ethanol produced in 2019 which resulted in 2,940,000 metric tons of carbon reduction EQUIVALENT TO CARBON DIOXIDE CARBON DIOXIDE CARBON DIOXIDE SEQUESTERED BY EMMISSIONS FROM EMMISSIONS FROM 3.8M 634K 7.3B ACRES OF U.S. PASSENGER
Slide 24: Sustainability in What We Do
Sustainability in What We Do World class provider of Transforming capabilities and expanding impact sustainable, ultra-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
Slide 25: 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 • EPA did not appeal 10th Circuit Court (WASHING
Slide 26: Tailwinds Driving Demand Through Higher Blends
Tailwinds Driving Demand Through Higher Blends ▪ E15 sold in 30 states at 2,200 retail stations as of September, 20201 ▪ E15 offered at over 200 fuel terminal locations1 ▪ $100 million in grants from USDA to accelerate infrastructure rollout ▪ POTUS directed EPA and OSHA to allow E15 through E10 inf
Slide 27: Tailwinds in Export Markets
Tailwinds in Export Markets Biofuel Exports Biofuel Exports 2,000 (million gallons) • Anticipate 1.2 - 1.3 billion gallons of exports in 2020 before potential China 1,500 demand from Phase I 1,000 • Brazil and Canada accounted for ~45% 500 of exports in 2019 • Brazil delayed eliminating TRQ but aren
Slide 28: Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com
Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com
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