Xcf Global, Inc. · NASDAQ:SAFX
Xcf Global — Focus Impact BH3 Acquisition — SPAC Merger (March 2024)
34 slides from Xcf Global's SPAC merger presentation, Mar 12, 2024
Slide 1: Flying Clean with Sustainable Aviation Fuels
FLYING CLEAN WITH SUSTAINABLE AVIATION FUELS INVESTOR PRESENTATION / MARCH 2024
Slide 2: Disclaimer
DISCLAIMER 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 Acquisition
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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”, “shoul
Slide 4: Forward-Looking Statements (Cont'd)
FORWARD-LOOKING STATEMENTS (CONT’D) 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 from t
Slide 5: Forward-Looking Statements (Cont'd) - Use of Projections
FORWARD-LOOKING STATEMENTS (CONT’D) 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 pre
Slide 6: Forward-Looking Statements (Cont'd) - Participants in the Solicitation
FORWARD-LOOKING STATEMENTS (CONT’D) Participants in the Solicitation Focus Impact and its 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 Combination under SEC
Slide 7: Investing in Socially Forward Companies
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 experienced private investment p
Slide 8: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM XCF has assembled a world-class management team with decades of experience, a strong track record of success and proven ability to execute Gregg Surette Interim Chief Strategy Officer Randy Soule 3rd Party Operations Partner, Head of Engineering, Procurement and Construct
Slide 9: Transaction Overview
TRANSACTION OVERVIEW PF Shares Outstanding (M) 163.2 Share Price ($) $10.00 PF Equity Value ($M) $1,632 (+) Existing Debt ($M) $258 (-) PF Cash ($M) ($50) PF Enterprise Value ($M) $1,841 Transaction Highlights Sources & Uses Pro Forma Valuation Pro Forma Ownership Deal Structure Existing XCF shareho
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: Investment Highlights
INVESTMENT HIGHLIGHTS Strong Regulatory and Market Tailwinds for Sustainable FuelsShift 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 Outstanding Business Model with a Differentiat
Slide 12: Aviation's Disproportionate Impact
AVIATION’S DISPROPORTIONATE IMPACT International Aviation: 145.8% Domestic Transport: 23.8% Land Use and Forestry: 18.4% Agriculture: (21.5%) Residential & Commercial: (28.2%) Industry: (35.2%) Energy Supply: (39.5%) International Shipping: 33.8% Waste: (38.9%) Aviation’s share of global energy-rela
Slide 13: 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 14: Aviation Industry Working Toward Decarbonization
AVIATION INDUSTRY WORKING TOWARD DECARBONIZATION (1) IATA “Climate Change Fact Sheet” (2) International Civil Aviation Organization (“ICAO”) “On Board A Sustainable Future” (3) ICAO “Long Term Aspirational Goal for International Aviation” (4) Company websites; www.sciencebasedtargets.org, “Target Da
Slide 15: SAF: Fueling Green Aviation
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 SUBVERTICAL(2) “SAFs are the only viable near-term option to decrease em
Slide 16: 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 Reliable, Proven Technologies Versatile Feedstock Base Financing License agreement in place with Axe
Slide 17: 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 18: Reliable and Proven Hydrotreating Technology
RELIABLE AND PROVEN HYDROTREATING TECHNOLOGY (1) License agreement between New Rise Renewables and Axens (2) Standard for evaluating which technologies, under specific circumstances and characteristics, can be used for producing on specification neat SAF New Rise’s hydrotreating technology increases
Slide 19: Long-Term Agreement with World-Class Partner
LONG-TERM AGREEMENT WITH WORLD-CLASS PARTNER XCF has partnered with an established Fortune 50 company who will supply 100% of the non-food feedstock and is the priority buyer for all SAF produced at New Rise for 15 years World-Class Partnership New Rise’s feedstock and prioritized offtake partner is
Slide 20: Favorable Regulatory Environment
FAVORABLE REGULATORY ENVIRONMENT (1) U.S. Environmental Protection Agency (EPA), D4 RIN = Renewable Identification Number for biomass-based feedstock (2) California Air Resources Board (CARB); weekly average transfer price (3) Internal Revenue Service (4) For facilities that satisfy the prevailing w
Slide 21: Governments Are Setting Targets to Use SAF
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 annu
Slide 22: XCF Is Ahead of Its Competition
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 6 Under Construction 5 Proposed / U
Slide 23: XCF's Public Peer Universe
XCF’S PUBLIC PEER UNIVERSE Established Production Capabilities Proven and Reliable Technology Long-term Cash Flow Visibility Multiple Growth Opportunities Strong EBITDA Margin Profile Key players competing in the drop-in renewable fuels space Some players are either developing new technologies that
Slide 24: Peer Benchmarking – Valuation Metrics
PEER BENCHMARKING – VALUATION METRICS EV / 2025E Revenue Multiple Source: FactSet as of 3/4/2024 Note: 'NM' denotes multiples that are greater than 100x or that are based on a negative denominator Renewable Diesel / SAF Producers Renewable Natural Gas and Other Biofuels Producers Average: 1.3x EV /
Slide 25: Summary Financial Projections
SUMMARY FINANCIAL PROJECTIONS SAF production facility at Reno, Nevada(2) expected to be in production mid-2024 Adjacent SAF production facility to be developed and projected to begin operations in Nevada in 2026, with Florida and North Carolina plants projected to be converted by 2028 Assumes offtak
Slide 26: Multiple Levers for Continued Growth
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 to a
Slide 27: Efficient Site Development with Attractive Returns
Illustrative Returns on Investment(1) EFFICIENT SITE DEVELOPMENT WITH ATTRACTIVE RETURNS Repeatable Site Development Process YEAR 1 YEAR 2 YEAR 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Repeatable process for: Land Acquisition and Site Development Obtaining Permits and Approvals Negotiating Commercial S
Slide 28: Projected Financial Performance Overview
EBITDA ($M) Gross Profit ($M) Total Revenue ($M) PROJECTED FINANCIAL PERFORMANCE OVERVIEW Revenue Growth Growth 59% SAF Production Volume (Millions of Gallons) 187% 59% GP Margin EBITDA Margin 54% 55% 205% $476.8
Slide 29: Appendix
APPENDIX
Slide 30: SAF Offtake Agreements in 2023
SAF OFFTAKE AGREEMENTS IN 2023(1) Purchaser Fuel Producer Announcement Date Total Offtake Volume (M Gallons) Term of Offtake Agreement Commentary November 29, 2023 NA NA AA is an anchor partner of Breakthrough Energy Catalyst PtL technology November 13, 2023 24.8 10 Years 2029-2038 $4.7M investment
Slide 31: SAF Offtake Agreements in 2023 (Cont'd)
SAF OFFTAKE AGREEMENTS IN 2023 (CONT’D)(1) Purchaser Fuel Producer Announcement Date Total Offtake Volume (M Gallons) Length of Offtake Agreement Commentary April 25, 2023 0.3 1 Year 2023-2024 Flights departing from San Francisco Airport HEFA technology April 23, 2023 2.5 1 Year 2023-2024 HEFA techn
Slide 32: Risk Factors
RISK FACTORS 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 an
Slide 33: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) 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 entrants t
Slide 34: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) 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’ busine
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