Verbio Se · XETR:VBK
Verbio — Verbio Vereinigte BioEnergie — Investor Day (September 2023)
36 slides from Verbio's investor day presentation, Sep 28, 2023
Slide 1: Pioneering green solutions
Pioneering green solutions Claus Sauter, Bernd Sauter, Olaf Tröber, Prof. Dr. Oliver Lüdtke, Theodor Niesmann Capital Markets Day September 28, 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information, which is based on assumptions and estimates of the company management of Verbio Vereinigte BioEnergie AG. Even though company management believes that these assumptions and estimates are correct, the actual future development and act
Slide 3: Presenters
Presenters Management Board Claus Sauter ‘CEO, Chairman of the Management Board Responsible for global business development, global marketing and communication, global hu- man resources, global trading, global risk manage- ment and specialities, sustainability Bernd Sauter COO Europe Responsible for
Slide 4: More than 80% of primary energy use comes from fossil sources
More than 80% of primary energy use comes from fossil sources Source: Freepik/Wirestock 4
Slide 5: Setting the Scene: More from Biomass
Setting the Scene: More from Biomass Bernd Sauter 5
Slide 6: Biomass Availability in relevant markets
Biomass Availability in relevant markets North/ Germany/ South America Europe 300m t Residues 495m t 20m t Cereals Residues 80m t 154m t Oilseeds Oilseeds 507m t Cereals India 252m t Cereals* 500m t 500m t Residues Residues* Source: UFOP/Verbio; *potential future market 6
Slide 7: Increasing the Efficiency of all Biomass Processing
Increasing the Efficiency of all Biomass Processing Green Solutions Building blocks Building blocks Green Solutions Seeds (30%) • Food • Food Cob (53%) • Oil (50%) Feed • Feed • • Starch (66%) • Protein Industrial • Industrial • • Protein and (20%) Applications (incl. • Starch + Applications Fiber (
Slide 8: Current Technology Scaling and Adding a Asset-light Business
Current Technology Scaling and Adding a Asset-light Business Claus Sauter 8
Slide 9: Our Biorefinery Model
Our Biorefinery Model Verbio feedstock unique Verbio green molecules usage biorefinery eter, (@) natu os vansport ae (biomethane) hyl esth @) food and feed (Biodiesel) “ (*e) fertilizer cosmetics and pharmaceuticals glycerine protein residues & oilseeds chemicals sterol . agriculture it @ y cereals
Slide 10: Our Competitive Advantage leads to attractive Returns
Our Competitive Advantage leads to attractive Returns Higher EBITDA in € per ton of Ethanol ROCE** (timing-adjusted) Verbio* Peer 500 473 100% 400 347 353 80% 65% 300 257 263 60% 185 191 203 200 40% 23% 24% 28% 21% 94 100 52 20% 0% 0 2018/19 2019/20 2020/21 2021/22 2022/23 2018 2019 2020 2021 2022 *
Slide 11: Growth Engine I: Implementing our Technologies across the World
Growth Engine I: Implementing our Technologies across the World Green molecules in thousand tons RNG in GWh Chemicals Opportunity Pipeline Opportunity Pipeline In Corporate Plan Bioethanol Biodiesel ~5,100 ~1,250 ~860 800 660 660 710 1,980 1,300 260 342 900 60 2021/2022 2022/2023 2023/2024E 2026/202
Slide 12: Our Platform provides Trading Optionality
Our Platform provides Trading Optionality Strong Analytics Multiple Green Multiple Capabilities Molecules Customers, Markets and Pathways Size Strong Risk Management 12
Slide 13: Growth Engine II: Increasing our established Portfolio with third-party Molecules
Growth Engine II: Increasing our established Portfolio with third-party Molecules Leveraging our Platform to maximize the Value of each Molecule: Opportunity Pipeline (Figures p.a.) 1,400 200 1,400 1,200 1,000 110 100 800 100 600 Buying third-party 400 Molecules via 200 Offtake/Equity 0 0 Biodiesel
Slide 14: New Technology Deployment: Chemical Feedstocks from VegOil
New Technology Deployment: Chemical Feedstocks from VegOil Theodor Niesmann 14
Slide 15: Why Chemical Feedstocks from Biomass?
Why Chemical Feedstocks from Biomass? Global trends in the chemical industry: Climate Neutrality – Consumer Goods Industry has established goals for CN between 2030 to 2050 Chemical industry urgently needs solutions Circular Economy – Shift to renewable/biobased chemicals to reduce waste, resource u
Slide 16: Verbio's core Biorefinery Concept on VegOil
Verbio‘s core Biorefinery Concept on VegOil 16
Slide 17: Products and Market
Products and Market Lubricant PAO Linear α-olefins – addressable market Surfactant ~USD 7-10bn (2023) Specialties FA alcohols • 1-Decene - market of ~USD 2.5bn p.a. 700-800kt/a (2022) mainly lubricants 1-Decene + • Heptenes not on the market but e.g. n-heptane solvent 1-Heptene ~USD 0,6-1 bn p.a., 3
Slide 18: Products and Market
Products and Market 9DAME Very versatile, but new to the industry → Verbio is First Mover Specialty Surfactants • Surfactants ~30-35 bn USD/a, 17-18 Mio t/a, Target market 150-300 kta Lubricants Solvent • Solvents USD 40-45bn p.aa, biobased solvents 0.5-1m t/a, USD 1,5-2bn p.a. • Specialty polymers,
Slide 19: VerbioChem – Ethenolysis Plant, Bitterfeld
VerbioChem – Ethenolysis Plant, Bitterfeld Existing Biodiesel Plant Ethenolysis Plant Expansion Existing Biodiesel Plant 19
Slide 20: XiMo – Our Catalyst Producer
XiMo – Our Catalyst Producer • 100 % affiliate of Verbio • Hungarian based catalyst developer and producer • Specialised on Metathesis Catalysts • Exclusive IP (licensed / own patents) R&D Catalyst Office production site 20
Slide 21: XiMo's Products
XiMo’s Products Verbio os Pioneering green solutions 21
Slide 22: XiMo's Applications and Markets
XiMo‘s Applications and Markets Industry Applications Product Reactions Renewables • Cosmetics • Decene • Ethenolysis • Lubricants • Methyl Decenoate • Homo Cross Metathesis • Fracking Solvents • Polyols / Diacids Flavours & • Cosmetics • Musk • Z-Selective Cross Metathesis Fragrances • Household •
Slide 23: Milestones
Milestones 2015 2018 2020 Start developing process Purchase of XiMo Start production of catalyst technology by Verbio → Catalyst price: 300,000 €/kg in kilo lab → Catalyst price: R&D team 30,000 €/kg 2022 01/2023 07/2023 Investment Decision Purchase of Catalyst production Site Selection for (€ 85m)
Slide 24: Facts and Figures
Facts and Figures Production capacity: 32,000 t p.a. 9-DAME 17,000 t p.a. 1-Decene 6,000 t p.a. 1-Heptene 5,000 kg p.a. Catalyst Estimated revenue in 2027: € 116m (40% Capacity usage) Estimated EBITDA in 2027: € 4.4m Estimated revenue in 2030: € 293m (90% Capacity usage) Estimated EBITDA in 2030: €
Slide 25: Highlights
Highlights • Business Case based on actual price level for „grey“ Decene and comparable chemicals for 9-DAME →Potential upsides for green chemicals on growing demand • Price of catalyst will decrease to 7,000 €/kg →Growing demand from other applications • Exclusivity for catalyst and own technology
Slide 26: New Technology Deployment: Chemical Feedstocks from Starch and Sugars
New Technology Deployment: Chemical Feedstocks from Starch and Sugars Prof. Dr. Oliver Lüdtke 26
Slide 27: Overview: Basic Organic Chemicals
Overview: Basic Organic Chemicals Basis Organic Chemicals are the Backbone of the Entire Chemical Industry! Basic chemicals Products from basic chemicals (global demand) PVC ➢ Ethylen Polyethylen (135 Mio.to)* / PVC (50 Mio.to) / Ethylenoxid (32 Mio.to)*/.... ➢ Methanol Formaldehyde (25 Mio.to)* / A
Slide 28: Basic Chemicals based on Verbio Products
Basic Chemicals based on Verbio Products Basic Chemicals Process / Technology Market/ Attractiveness ➢ Ethylen catalytic process by ethanol (technology available) Close to market price / existing ➢ Methanol synthesis gas route by RNG / CH4 (technology available) Premium for biomethanol by CO2 / CO a
Slide 29: Special Chemicals from Verbio
Special Chemicals from Verbio Raw Material Products / Technology Market ➢ Fusel Oils Esterification to C3-C5 Ester-mixture (R&D) Solvent industry ➢ Fusel Oils Hydrocarbons / Separation & Fractionation of oils Niche markets ➢ Ethanol Ethyl acetate / Reaction between ethanol & acetic acid Solvents for
Slide 30: Bringing it all together: Impact and Implications
Bringing it all together: Impact and Implications Olaf Tröber 30
Slide 31: Green Customer Impact
Green Customer Impact CO2 Emissions Reduction in million tons according to German Regulation 2022/23 2026/27E 0 -2 Estimated CO2 emissions reduction based on the -4 -3.4 implementation of projects that are part -6 of Verbios opportunity pipeline -8 -8 -10 31
Slide 32: Opportunity Pipeline to drive Dynamic Growth in Earnings Power
Opportunity Pipeline to drive Dynamic Growth in Earnings Power Meaningful progress on mid-to-long-term Strategic Vision in € m • Current estimated mid-to-long- term annual earnings power of € 700m - € 800m after completion of attractive opportunity pipeline* 1,000 c. € 700m - € 800m • Earnings power
Slide 33: Asset Base generates significant Cash to support Growth
Asset Base generates significant Cash to support Growth Sources and Use of Cash: Cumulative in €m June 30, 2016 to June 30 2023 Sources of Cash Uses of Cash Cash and Cash Net Cash Provided Other Financing Capital Cash and Cash Dividends Equivalents June by Operating Activities Investments Equivalent
Slide 34: Summary and Q&A
Summary and Q&A Verbio
Slide 35: Point of contact
Point of contact Ulrike Kurze Alina Köhler Marketing & PR Investor Relations Ritterstraße 23 (Oelßner‘sHof) Ritterstraße 23 (Oelßner‘sHof) 04109 Leipzig 04109 Leipzig E-Mail: pr@verbio.de E-Mail: ir@verbio.de 35
Slide 36: VERBIO Vereinigte BioEnergie AG
VERBIO Vereinigte BioEnergie AG Ritterstraße 23 T +49 341 308530-0 04109 Leipzig F +49 341 308530-999 Germany info@verbio.de www.verbio.de
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