Highwater Ethanol LLC · OTC:HEOL
Highwater Ethanol — Pitch Deck (April 2007)
45 slides from Highwater Ethanol's pitch deck, April 2007
Slide 1: Welcome
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Slide 2: Investment Opportunity
Investment Opportunity for residents of Minnesota, Iowa, South Dakota, Illinois, Missouri, Florida, Kansas, Georgia, Louisiana & Wisconsin
Slide 3: General Mission
General Mission To successfully build and operate an ethanol facility, which will be profitable to our investor owners, while contributing to the economic growth in the region.
Slide 4: Intends to...
Intends to... • Build a 50-million gallon per year ethanol plant located near Lamberton, MN • Use 18.5 million bushels of local corn annually • Produce 160,000 tons of DDGS
Slide 5: What it will look like!
The Highwater Ethanol plant will utilize the latest technology and operate at 100% of its 50 million gallon nameplate capacity. What it will look like!
Slide 6: Let's Talk Corn!
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Slide 7: Redwood County Minnesota
Redwood County Minnesota Second largest corn producing county in Minnesota!
Slide 8: Corn is... 66% Ethanol Input Cost
Corn is... 66% Ethanol Input Cost
Slide 9: Highwater Ethanol: We have secured our corn!
Highwater Ethanol We have secured our corn!
Slide 10: Minnesota Corn Supply
Minnesota Corn Supply County 2005-2004 2004-2003 • Brown 26.1 24.0 • Cottonwood 30.5 24.4 • Lyon 28.3 23.8 • Murray 28.4 23.7 • Redwood 40.3 34.5 • Renville 41.8 36.9 • Watonwan 24.2 19.6 Seven County Total 219.6 186.9 (Million Bushels)
Slide 11: MN Average Production
MN Average Production 2002-2006 1.09 Billion Bushels 56% Exported 23% Livestock 14% Ethanol 7% Sweetener Source: PRX
Slide 12: Highwater Board
Highwater Board
Slide 13: I love my DDGS!
I love my DDGS!
Slide 14: DDGS, What is it?
DDGS, What is it? Distillers Dried Grains with Solubles (DDGS)
Slide 15: DDGS: A Valuable Co-Product
DDGS “e ’ A Valuable Co-Product
Slide 16: Drymill Ethanol Plant Process
Drymill Ethanol Plant Process
Slide 17: Let's Talk Rail!
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Slide 18: Rail access important for Highwater Ethanol
Rail access important for Highwater Ethanol
Slide 19: Brazil
Brazil #2 producer of Ethanol in the world Honda Begins Sales of FFV Vehicles Sept. 2006 E100 77% of new cars sold are Flex Fuel
Slide 20: What is MTBE?
What is MTBE? MTBE methyl tert-butyl ether has been used in gasoline since 1979 to replace tetra-ethuyl-lead to increase its octane rating and help prevent engine knocking. Ethanol as the only gasoline oxygenator has greatly increased demand.
Slide 21: Ethanol is good for our Earth
Ethanol is good for our Earth • Environmentally friendly • Does not pollute ground water • Reduces emissions of greenhouse gases • 10% blended gas reduces carbon monoxide by 30% Source: EPA
Slide 22: Imported Oil
Imported Oil 1975 35% 1990 49% 2005 60% Source: Energy Information Admin.
Slide 23: U.S. Crude Oil Imports
U.S. Crude Oil Imports Top 6 Countries 1. Canada 2. Mexico 3. Saudi Arabia 4. Venezuela 5. Nigeria 6. Iraq Source: Energy Information Admin.
Slide 24: Ethanol is good for America
Ethanol is good for America
Slide 25: America Consumes 140,000,000,000 gallons gas per year
America Consumes 140,000,000,000 gallons gas per year Source: Energy Information Admin.
Slide 26: 14 Billion Gallons
14 Billion Gallons 10%
Slide 27: Consuming even larger amounts of Ethanol
Consuming even larger amounts of Ethanol.
Slide 28: Renewable Fuels Standard
Renewable Fuels (billions of gallons) 2006 4.0 2007 4.7 2008 5.4 2009 6.1 2010 6.8 2011 7.4 Renewable 2012 7.5 Fuels Standard
Slide 29: US Ethanol Production
US Ethanol Production 5.2 5.2 billion gallons 2.6 0 99’ 00’ 01’ 02’ 03’ 04’ 05’ 06’ As of January 2007 Source: EIA & RFA
Slide 30: The Highwater Ethanol Support Team...
The Highwater Ethanol Support Team... Design / Builder Fagen, Inc. Technology Provider ICM, Inc. Energy Management U.S. Energy
Slide 31: Ethanol Marketing and Advisors
Ethanol Marketing Renewable Products Marketing Group DDGS Marketing under negotiation Financial Christianson & Assoc. LLP Boulay, Heutmaker, Zibell & Co. Legal BrownWinick Schwebel, Goetz & Sieben
Slide 32: Fagen Inc.
Industry Leader In Ethanol Plant Construction Fagen Inc. the right choice for Highwater Ethanol!
Slide 33: Industry Leader In Ethanol Plant Construction
Industry Leader In Ethanol Plant Construction 35 ethanol plants currently under construction
Slide 34: Industry Leader In Ethanol Plant Construction
Industry Leader In Ethanol Plant Construction In the past 5 years Fagen Inc. has started 66% of all new gallonage in the US.
Slide 35: Industry Leader In Ethanol Plant Construction
Industry Leader In Ethanol Plant Construction Geographical placement, corn availability and price, rail access and overall infrastructure are key to a projects success.
Slide 36: Guarantees
Guarantees • name plate production • 2.8 gallons per bushel of corn • natural gas consumption rate • electricity consumption rate • cost when construction begins • start of operations • plant employee training
Slide 37: ICM, Inc.
ICM is located in Colwich, Kansas, employs over 220 engineers, professional and industry experts dedicated to the success of your ethanol plant. We have 50 full-time field employees who remain on-site throughout the construction phase of our projects to personally oversee progress along with design/
Slide 38: Timeline Goals
Highwater Ethanol LLC Timeline Goals • Membership Units: Available April 2007 • Financial Close: Spring 2007 • Construction Begins: Spring 2007 • Construction Schedule: 16-18 months • Operational: Late 2008 This timeline is based on a successful equity drive, and close of debt financing. A variety o
Slide 39: Financial Goals
Highwater Ethanol LLC Financial Goals Estimated Cost: $110,000,000 • Equity: $ 45,000,000 - $60,000,000 • Term Debt Financing: $ 50,000,000 - $65,000,000
Slide 40: Investor Requirements
Investor Requirements: • Unit Price: $10,000 • Minimum Purchase: 1 units ($10,000) • Additional Increments: 1 unit ($10,000) • 10% down, remainder due 20 days upon written notice. • Must be resident of: Minnesota, Iowa, Illinois, Wisconsin, Florida, Georgia, Louisiana, South Dakota, Kansas & Missour
Slide 41: This could be our groundbreaking!
This could be our groundbreaking!
Slide 42: Invest Today!
Invest Today!
Slide 43: Appendix C: Subscription Agreement
APPENDIX C HIGHWATER ETHANOL, LLC SUBSCRIPTION AGREEMENT Limited Liability Company Membership Units $10,000 per Unit Minimum Investment of 1 Unit ($10,000) 1 Unit Increments Thereafter ($10,000) The undersigned subscriber (“Subscriber”), desiring to become a member Highwater Ethanol, LLC (“Highwater
Slide 44: Subscription Agreement: Subscriber Information
Minnesota limited liability company, with its principal place of business at 205 S. Main Street, PO Box 96, Lamberton, Minnesota 56152 hereby subscribes for the purchase of membership units of Highwater Ethanol, and agrees to pay the related purchase price, identified below. A. SUBSCRIBER INFORMATIO
Slide 45: Thank You
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