Rto Limited · NZX:RTO
Rto — Investor Presentation (October 2006)
24 slides from Rto's investor presentation, Oct 25, 2006
Slide 1: Orion Ethanol Company Overview
ad OrionEthanol ate Overview
Slide 2: Company Highlights
€.9) Company Highlights = Strong industry fundamentals and compelling projected economics = Strategic plant locations provide structural competitive advantage — proximity to rapidly growing markets (ethanol and byproducts) — transportation and logistical infrastructure — access to multiple sources o
Slide 3: Business Strategy — Location, Industry Partners and Technology
ee Business Strategy — Location, Ad Industry Partners and Technology (Millions of gallons) ee we E10 a ]PADDIV_Demand Potential Growth mand Potential Gro oa 2006 E10 Qtion Ethanol 2008 Qua. a oe 6=5eu a ies = @ other Existing Pants (108) Botner Prants Under Construction (61) RE Source: Hart Energy C
Slide 4: Market Overview
ad Market Overview
Slide 5: Ethanol Economics
9 Ethanol Economics example Ea Economics
Slide 6: Supply / Demand Fundamentals
ad Supply / Demand Fundamentals Boy Demand Drivers 18.0 10-2015 16.0 140 12.0 142 pa! 14 2005, 2006 2008 2010 2012 2015, mm Supply mmDemand -&-RFS Renewable Fuels Standard mandates 7.5 billion gallons per year by 2012 MTBE phase out of approximately 4 billion gallons, = 1.7 bilion gallons remaining
Slide 7: Historical Prices
<9 Historical Prices $4.00 $5.00 ¢ $3.00 5 84.00 8 2 ‘w $2.00 3 $3.00 + 2 s ? $1.00 ° $2.00 $0.00 + $1.00 A dd o © ES SP Sr Sh SP sh PP sf x fe oe o FFL K SK SK ° —Unleaded Gasoline © ——Ethanol * Ethanol tends to be priced on = Com prices have traded between $2.00 - $3.00 gasoline prices + most/all
Slide 8: US Corn Market Demand Fundamentals
PS) US Corn Market Demand eX Fundamentals Consumption (Millions of bushels) oe 44,175 12,000 10,662 11, Yeoo | 2215 94a 10292 8,000 6,000 4,000 2,000 0 14,815 44,430 11,640 11,855 12,015 12,165 12,280 2001 2002 ©2003-2004 += 2005 2006E © 2007E_2008E © 2009E 2010E 2011 2012E mmmFeed,Residual,andSeedU
Slide 9: Orion has the ability to sell higher margin wet DGS
= Orion has the ability to sell higher margin wet DGS to its markets = Wet DGS is the preferred feed for cattle = Orion's local markets can absorb all the distiller grain that Orion's facilities can produce — minimal wet DGS currently supply markets — 500,000 head of cattle within 50 miles of each p
Slide 10: Compelling Economics
> Nd Compelling Economics Ethanol price (S / gallon) Breakeven Analysis“ Ethanol Project Equity IRR: 2) CBOT corn price ($ / bushel) Current estimates nzeD $2.00 $2.40 $2.80 $3.20 $3.00] 90% 86% +=» 81% = 75% $2.00 z $260] 77% — 71% © 65% 60% a bi < $2.20 61% 55% 49% 42% 3 $1.00 3 $180] 43% | 36% |
Slide 11: Operations Overview
Operations Overview Loop Track Ethanol & Denaturant Storage Grain Production Handling
Slide 12: Project development status by plant
Land Railroad Water rights Permits EPC contract Begin construction 1st production date C02 market DGS market Pratt Shattuck 4 a Enid Colby __Hugoton_ Wellington v qv v v v v v v v v v v v @207 207, 207 Vv Q207 Q207 Q2 07 @107 307-307-407 208 = a408 408 = Qt 09 # v v v v aN v v
Slide 13: Built for Capacity Expansion
© Built for Capacity Expansion $250 am gm = = ($1.51) $77 on ge (ihe) (81.34) (81.34) size $128 $93 ($2.98) ($2.24) ($1.68) $50 50 $0 Pratt Enid Shattuck Combined Capacity + Infrastructure in place to support expansion ‘@Capital Cost_mCapacity wm Expansion Related Note: Costs include total project c
Slide 14: Strong Future Growth Potential
<9 Strong Future Growth Potential
Slide 15: Orion's Competitive Advantages
Nd Orion’s Competitive Advantages Proximity to end users — closest plants to Southwest and major Texas markets — target markets include Dallas, California, Houston, Tulsa, Denver, Oklahoma City, Phoenix and Las Vegas * Strategically located near grain suppliers — low transportation costs — favorable
Slide 16: Mid-continent Location Provides Lowest Cost Access to High Growth Markets
Mid-continent Location Provides Lowest Cost Access to High Growth Markets MTBE Replacement Texas Ethanol Supply Existing and Announced Plants (BGY) 500 mi % Orion Houston o4 100% Dallas 06 26% @ oven ean oN on San Antonio 03 52% @ omer Existing Pani, Botner Pants Under Constction Source: Hart Energy
Slide 17: Ability to Economically Supply Large, Established Markets
nd Ability to Economically Supply Large, Established Markets California Ethanol Demand 20 2006 E77 Orion’s California RaTaTSS West Coast (Staton capacity) == orion Producer) nant s200 s200 oes doo o coe Sot Sco Total Revenue wa wa cone sa29 s18 Ena rans ant on stra goe a9 ots peared Sot oot ST comte
Slide 18: Technology Driven Operations
Technology Driven Operations Enhanced Proprietary Other Technology / Future Use of Corn Lurgi DGS process Processes Fractionation * Dedicated engineering _—_* Process improvement which * Use of specialized enzymes _* Project to allow for 5 allows for creation of in fermentation process extraction of
Slide 19: Corporate Partners
© Corporate Partners EPC contractor Grain marketers Lurgi JOHNSTON Ze, cnaranoe l> Cargill aes JOHNSTON Cargu ih Cargill MONSANTO A Lurgi
Slide 20: Orion Competitive Advantage
ad Orion Competitive Advantage (Orion per gallon advantage / (disadvantage) relative to: Com Belt plants Regional plants ‘Transportation LUnittrain and rairoad access: soos 008 Prosimity to Texas market 003 : $006 9008 Location Proximity to dry grain end users sos Proximity to OO; high value end use
Slide 21: Management and Board
Management and Board Members Porter Loomis Wallace A. Stanberry Dr. Patrick Barker ‘Butch Meibergen Director Director Executive Chaiman of Director + CEO of The + Owner of Stanberry the Board + President of Pop's Bank since Gi President of + 40 years agricultural sohnsten Grain and ‘ Tranepeteo fenf
Slide 22: Financial Overview
<33 Financial Overview 22
Slide 23: Cost Structure Analysis
te) ad Cost Structure Analysis $/ gallon Revenue: Ethanol (S/gallon) $1.80 : $220 $180 - $220 Distiller grains (S!ton) 47990 56.08 030 - = 038 CO; (Siton) 70000 9.00 oor. __00t Total revenue $211 - $2.86 Costs: Com (S/bushel)” $2.38 - $2.78 $085 - $0.99 Ethanol transport (S/gallon)” 007 - 0.09 007 -
Slide 24: EBITDA Sensitivity Analysis
) “se EBITDA Sensitivity Analysis $1.80 ethanol price $2.00 ethanol price $2.20 ethanol price $inmillions $/gallon_ $in millions _$/ gallon $inmillions _$/ gallon Revenue Ethanol $297.0 $1.80 $330.0 $2.00 $363.0 $2.20 Distiller grain 544 033 544 0:33 544 033 C02 12 0.01 12 0.01 2 0.01 Total revenue