Gevo, Inc. · NASDAQ:GEVO
Gevo — Investor Presentation (September 2019)
44 slides from Gevo's investor presentation, Sep 9, 2019
Slide 1: Overview September 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS. ‘Any statements in this presentation about our future expectations, plans, outlook and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions, constitute forward-looking sta
Slide 3: Focus: Very Low Carbon Fuels (and Chemicals) That Can Make Money
FOCUS: VERY LOW CARBON FUELS (AND CHEMICALS) THAT CAN MAKE MONEY Target Markets/Products Raw Materials Jet Fuel a x » Sa + Production technologies work + Products work ‘Gasolina (Isceceama) + Markets are developing " + We are seling products ie. aa e— + We still need to achieve economies of scale ‘O
Slide 4: Enormous Market Potential
ENORMOUS MARKET POTENTIAL Mainstream markets of billions of $ Varenenable Baye => Off Road Gasoline Blendstock: 1.88 gallons Bi sobutano (18a) IH IBA-cerived "Drop in” Hydrocarbons ‘iranenale pene
Slide 5: It's a New Paradigm
IT’S A NEW PARADIGM. WE CAN NOW GO AFTER THE WHOLE GALLON
Slide 6: Summary
SUMMARY Business Overview Facility Overview: = Headautes: Englenood, CO + Corte eaves (ngenood CO) ~ofices and abs > ended 2008 5 eho reduc acy (averne, HN) ~20460Y Etat, + employees: 50 (20 in Colorado, 30 Mines) + 20 Conrars {ISMGDY IA. Potent for lon cabo Cea, Pttl + opty tecteloy poston (tet nd
Slide 7: Other Relevant Information
OTHER RELEVANT INFORMATION + Cash ~ $29 Million (6/30/2019): + Debt ~ 2020 Notes (Whitebox): $13.9 million principal (8/21/2019): + Common Shares == 13.4 million (8/21/2019): + Warrants ~ 54,989 Warrants outstanding @ avg of $44/share (8/21/2019): + Current Analysts = Amit Dyal, HC Wainwright + Mana
Slide 8: Market Drivers
oe, e MARKET. DRIVERS i gevo
Slide 9: We All Have a Problem
WE ALL HAVE A PROBLEM
Slide 10: A New World Record Every Year
A NEW WORLD RECORD EVERY YEAR + Latest CO, reading May 11, 2019 + Carbon dioxide levels at 800,000-year high encore data fre 195, Mura Lon dat afer 1958, Carn doe essen a ang Irena ton an tare eco i ; = a a = ae a
Slide 11: The Problem: Fossil Carbon in the Atmosphere Increasing
THE PROBLEM: FOSSIL CARBON IN THE ATMOSPHERE INCREASING ME banc wt gevo ‘ Bach vier ‘o7er
Slide 12: What Can We Do?
WHAT CAN WE DO? 4 fe 2% gevo + Eliminate burning of fossil based carbon in production of electricity and transportation fuels + Use forestry and agriculture to capture carbon in the soil, plants, and trees
Slide 13: Recent Headlines – Climate Change
RECENT HEADLINES ~ CLIMATE CHANGE Ateat Wave Tests Europe's a Defenses. Expect More. socould call climate eres reve Medical STOUPT emergency’ Further j ising Sor I ilo® change @ change is si —s cron “Finan shar scent? peor ; nae to fossil-fuel power plants , We have too many i Z Extraordinary’: Almo
Slide 14: Recent Headlines – People Taking Action
<a Terre to prot nd the World ski RECENT HEADLINES — PEOPLE TAKING ACT JON timate change mand Action Eye PO! peace > "sin pose 7 . Swedes are Switching “Av. vy tom pl: 2 Youth Snag rary po Planes to trains the armets =] no’ 5 i = ]ORLD PROTEST -cw ‘endmgupasain -TUDENTS AROUND THE WORLD PF ignorance
Slide 15: sae
sae 5 re to La NN LE air . ree ait re AIR POLLO nets r= ticles linkeg Toxic Air To Blame For Lui ‘oF CANCER incteaseg Re Cancer; No Longer Just A sth, ae isk of ad ar Pollution Linked To Childhood Cancers ‘Om He eae AEN eis a‘healt § — © climatechangets.a Public | Climate ag eilicaland —* Healthemer
Slide 16: Recent Headlines – Who Is Accountable?
de ac ibis (CCOUNTABLE? : OW the car rT HEADLINES. — WHO'IS ACCOUNT industry hid the trut RECEN’ if y RONTO FACE a about diese] emissions or oo AHANGEPRESSURE Site 7S my . sit 5 adil TORS -su- Bp Investors Back Climate Aramco Ema tut INVES e Proposal Amid ony EES Ahead of FRO! Chang PPleas Worta’ ng
Slide 17: Who Is Responsible?
WHO IS RESPONSIBLE? Pollution Consumers Consumer Product/ Service Companies Refiners, Producers Oil Companies
Slide 18: We Are Going After the Whole Gallon
WE ARE GOING AFTER THE “WHOLE GALLON” + Huge potential to change the game, possibly even negative carbon emission + Compliment electrification of the transportation sector (not all regions can be easily electrified) + Doesn't require change of transportation engines (autos or jet), or fuel infrastru
Slide 19: Replace the Carbon Source and Energy Source to Eliminate GHGs from Fuels
REPLACE THE CARBON SOURCE AND ENERGY SOURCE TO ELIMINATE GHG’S FROM FUELS. Carbon Process | we 8 ak ond Increased co,
Slide 20: Low Carbon Cycle
>2iIbs of Coz sequestered per gallon}, but could be much higher according to recent reports coz Fenviuize LOW CARBON CYCLE MIDWEST USA SUSTAINABLY GROWN ——— NS MATERIALS on 10 Ibs of protein/feed per gallon of hydrocarbon fuel Wino POWER BIOFUEL PLANT BEEF, POULTRY PROTEIN AND FEED 0 FOOD
Slide 21: Cellulosic Feedstocks Are Enabled
CELLULOSIC FEEDSTOCKS ARE ENABLED Enables Potential Global Scale
Slide 22: We Can Get to Very Low Carbon Footprints
WE CAN GET TO VERY LOW CARBON FOOTPRINTS And get paid for it pie Below this line is where Gevo wants to be The carbon footprint has potential tobe driven to negative with agricultural practices or with more renewable natural gas (RNG)
Slide 23: Our Farmers Are Very Good, and We Can Make Them Better
OUR FARMERS ARE VERY GOOD, AND WE CAN MAKE THEM BETTER Measure, Improve, Reward Carbon Footprint of Gevo's Individual Farmers + Already lower than the US average by 50% = Precision agriculture —Low till/notill planting Moving to manure based fertilizer + Future upside potential geSeessgrssgeegaqasse
Slide 24: How to Reverse GHGs and Generate Protein for Food Chain
HOW TO REVERSE GHG'S AND GENERATE PROTEIN FOR FOOD CHAIN a Agriculture improvements are ‘AllFarms Reduced Till NoTill Capture straw, practical and being done sop Fogel 2017" "Fas Fos Fam eis «Wa filly expect to be abla bx meet RED II, RSB, and ISCC requirements + Agricultural improvements can lead t
Slide 25: How to Achieve Profitability and Get on the Path to a Multi-Billion Dollar Business
HOW TO ACHIEVE 4 PROFITABILITY AND ao , GET ON THE PATH TO @ \* A MULTI-BILLION =) DOLLAR BUSINESS AN :
Slide 26: The Aviation Industry Has an Opportunity... and a Problem
THE AVIATION INDUSTRY HAS AN OPPORTUNITY... AND A PROBLEM een They are expecting to experience strong growth. Je Wa No Langer Get Fre Rie on Caton but, they have promised to hold GHG emissions flat from — 2020 onward oo ‘World Jet Fuel Demand Year over Year Projected Jet Fuel Demand Growth: ~3BGPY 0
Slide 27: Gevo Jet Fuel
GEVO JET FUEL : _# —_ SSE Pt maaln
Slide 28: Products Work, We Are Building Experience
aX PRODUCTS WORK, WE ARE BUILDING EXPERIENCE i " FLYGREEN ———= roe @tutthansa BY aren af /—FARNBOROUGH AIRPORT snoenponeny FE oo | vont) Dd seats wy weet xonewam %Peirbp aome * CHICAGO O'HARE = BriseaNe AIRPORT ct) TR rusrta van Nuys —_/ 1 ip eacseinanse biaad = Q caex FARMINGDALE NAA NEW YORK. Sens
Slide 29: We Intend to Replace the Whole Gallon of Gasoline
WE INTEND TO REPLACE THE “WHOLE GALLON” OF GASOLINE Starting with Isooctane a gevo Low carbon and clean * Key ingredient. It works; we are making it and aromatics, low olefins) selling it Certificate of Analysis + Small engine, packaged fuels, engine OEM and eee iain biases racing Haltermann, woe NV
Slide 30: Isooctane in Performance Fuels
ISOOCTANE IN PERFORMANCE FUELS Start with high value niche Up to 4MGPY under take-or-pay contract Haltermann FU Carless
Slide 31: Isobutanol as a Gasoline Blendstock
ISOBUTANOL AS A GASOLINE BLENDSTOCK Isobutanol delivers better properties than other renewable alcohol blendstocks + Higher energy (potential for more miles per gallon) + Less corrosivity (less wear and tear on certain types of engines) Ethanol Free: ~7BGPY* aaa UNG Ethanol Free Gasoline in Houston
Slide 32: We Can Be Cost Competitive with Commodity Petro-Based Fuels
WE CAN BE COST COMPETITIVE WITH COMMODITY PETRO-BASED FUELS. AND OTHER HYDROCARBON PRODUCTS. + Carbon value is more reliable because of LCFS and EU RED policies — Debt providers have indicated that they are more comfortable with ongoing value of carbon + We have contracted about 50% of our planned e
Slide 33: Renewable Hydrocarbons Should Eventually Be Less Expensive
RENEWABLE HYDROCARBONS SHOULD EVENTUALLY BE LESS EXPENSIVE Takes a combination of oil price and “green value” Price Potential Renewable Hydrocarbon Fuel Net Price* Time
Slide 34: Our Technology and Products
Our Technology and Products Process and products proven to work
Slide 35: Making Products
MAKING PRODUCTS 1 Million Liter Hydrocarbon Production* Ethanol and IBA Fermenter Silsbee, TX Production - Luverne, MN
Slide 36: Current Production & Products
CURRENT PRODUCTION & PRODUCTS Products Sold _ wa we ot = @ “a gevo
Slide 37: Step 1 - Road Map to Scale: Set Up Luverne for Low Carbon Alcohol
STEP 1-ROAD MAP TO SCALE: SET UP LUVERNE FOR LOW CARBON ALCOHOL PRODUCTION, ADD 1 MGPY HYDROCARBON CAPACITY TO IMPROVE PROFITABILITY ty and Combing Power (CHP) ready in deployment) Biogas from Gevo Eneray {in development) 1 MGPY Hydrocar ‘Shockwave Dry Frac (ready to de {already deployed)
Slide 38: Step 1: The Path to Improved Profitability
We are working to rai STEP 1: THE PATH TO IMPROVED PROFITABILITY Refi of Sr Secured Debt ~$15M —— AMGPY Hydrocarbon plant: $16M F , Investment in Gevo Energy and Potential corporate structure and financing liver rcjectss talon LOT is in place with potential lender LOT in place with potential lender
Slide 39: Step 2 - Road Map to Scale: Build Out Large Scale IBA and Hydrocarbons
STEP 2-ROAD MAP TO SCALE: BUILD OUT LARGE SCALE IBA AND HYDROCARBONS (JET AND ISOOCTANE) ty and Combing 10-12 MGPY Hydrocarbon Plant New IBA Fermenters
Slide 40: Step 2: The Path to Large Growth
STEP 2: THE PATH TO LARGE GROWTH Potential corporate structure and financing and TA pr) Part 2: Build out of Luverne anticipated to be project financed. Total project is projected to be about $140- 150M. Lenders/partners doing diligen:
Slide 41: Step 3: Grow and License
STEP 3: GROW AND LICENSE + Sde-by Sie at Luverne fay vakates the model of sebitaneV ethanol eo producton + Opparuntis exst to completely retofe and ‘uorsfrm underpecormg ethane! pts + G projects decussion fr projets ther EATER than Luverne, th MOUSn pice gevo
Slide 42: Plan for Revenue Growth
PLAN FOR REVENUE GROWTH? Step 1 PROXECTED 2021 blue added products and deploy low carbon energy at Luverne plant Step 2 Step 3 PROJECTED Earliest could be 2023/2024 80 sand Luveme plant t achieve economies of scale 16 MGPY hydrocarbons
Slide 43: Business Summary
BUSINESS SUMMARY The Problem: + Fossil fuels emit fossil greenhouse gasses (GHGs) + Companies want to mitigate liability + Governments want to reduce GHG emissions + Consumer's care about pollution and want GHGs addressed The Solution: + "Decarbonize.” Lower the carbon footprint of fuels by replacin
Slide 44: Thank You
Thank You