CropEnergies AG · LSE:0DXG
CropEnergies — Investor Presentation (January 2007)
36 slides from CropEnergies's investor presentation, Jan 16, 2007
Slide 1: Analyst Conference
Analyst Conference January 16, 2007
Slide 2: CropEnergies – Overview
crop.~energies ~ _— CropEnergies - Overview Member of the Group SUDZUCKER pam
Slide 3: CropEnergies - Overview
CropEnergies - Overview One of the leading European biofuel producers Market Cap: 600 Mio. € focused on bioethanol (85,000,000 shares) biggest EU ethanol plant (260,000 m3/a expansion to Prime Standard 360,000 m3/a) first “pure play” quoted in Europe Frankfurt Stock Exchange Sales 2006
Slide 4: CropEnergies – young but experienced
CropEnergies – young but experienced 1986: Pilot project Südzucker / Frankenzucker 2003: Start construction of Zeitz plant (December) 2005: Start production at Zeitz plant (May) 2006: Initial Public Offering (September) Experience since 1837: Südzucker World-largest sugar producer: 5m t
Slide 5: Structure and Products
Structure and Products CropEnergies AG Mannheim, Germany Share capital 85 Mio. €, total equity 277 Mio. € 100% 100% 100% BioWanze S.A. Bioenergy Loon-Plage S.A.S. SZ Bioethanol GmbH Wanze, Belgium Zeitz, Germany Dunkirk, France -under construction- Ethanol Ethanol Storage Capacity ProtiGrain
Slide 6: Market Fundamentals
crop.~energies ~ _— Market Fundamentals Member of the Group SUDZUCKER pam
Slide 7: Growing Oil Demand
Growing Oil Demand 120 China India million barrels per day Indonesia Other Asia 80 Latin America Middle East Transition economies Africa OECD 40 Source: World Energy Outlook 2004 Without Miscellaneous (bunkers and stock changes) 2002 2010 2020 2030 Increase of World oil demand by 60% till 2030 (fr
Slide 8: Limited oil resources
Limited oil resources Russia 5% RoW 21% Persian Gulf Countries USA, Canada 59% 15% Source: U.S. Energy Information Administration, Dec. 2005 Known oil reserves only 1.293 billion barrels 59% of oil reserves situated in the Persian Gulf region EU oil dependency will rise from 67% in 2006 to 90%
Slide 9: Rising Energy Prices
Rising Energy Prices Oil price development 1960-2006 Source: www.tecson.de, IEA (International Energy Agency) Rising demand and political instability lead to rising prices and higher volatility Requirement for reliable prices IR/ TE/ 17.01.2007 9
Slide 10: Growing Greenhouse gas pollution (GHG)
Growing Greenhouse gas pollution (GHG) World increase CO2 pollution 2002/25 (in %) EU changes in CO2 pollution (Kyoto) 160 +145% 140 120 100 +95% +99% +78% 80 60 +39% 40 +32% 20 +11% +5% 0 Japan West Russia USA Africa India Brasil China Europe Source: Spiegel 45/2006, WRI Index 100 in 1990 Source: E
Slide 11: The answer: Renewable Energies
The answer: Renewable Energies Solar-, Hydro-, Wind-, Change in emissions of GHG Geothermal-, Biomass-Power by Sector in % (1990 - 1999) Mainly electrical energy for stationary waste applications agriculture other (non-energy) other (energy) Biofuels Industrie (production) fugitive emissions energ
Slide 12: Strategic Focus CropEnergies: Bioethanol
Strategic Focus CropEnergies: Bioethanol
Slide 13: Bioethanol as a fuel component
Bioethanol as a fuel component ETBE Low blends High blends Bioethanol Isobutylene Bioethanol Bioethanol 47% ETBE Petroleum 5% – 10% 85% – 100% max15% Gasoline Gasoline Gasoline Highlights Highlights Highlights 9 Gasoline can contain up to 15 % 9 5% blending already established 9 Proven technology (F
Slide 14: Bioethanol: accepted by consumers and automobile-industry
Bioethanol: accepted by consumers and automobile-industry Sales of FFV light vehicles in Brazil… …and increasing commitment from OEMs… 90 80 “In Europe, biofuel is one of the most promising solutions for bringing down CO2 emission levels. Under Renault 70 Commitment 2009, Renault has made several co
Slide 15: CropEnergies concentrates on Bioethanol
CropEnergies concentrates on Bioethanol market Ethanol is worldwide No. 1 biofuel 40.000 Superior raw material 35.000 30.000 availability (carbohydrates) thousand cbm 25.000 20.000 15.000 Higher barriers to entry 10.000 5.000 0 2000 2001 2002 2003 2004 2005 2006e Biodiesel Ethanol In EU: Les
Slide 16: EU Bioethanol: ample supply of raw materials
EU Bioethanol: ample supply of raw materials EU-25 harvest 2005 EU usage EU surplus Potential in ETH Mio. m3 Grain 260 Mio. tons 235 Mio. tons 25 Mio. tons 9.7 Sugar 20 Mio. tons 15 Mio. tons 5 Mio. tons 3.7 Set aside land 7 Mio. hectares 16.8 Total 30.2 From existing EU surplus and set aside farm
Slide 17: Summary: 'Macro'-advantages of bioethanol
Summary: ‘Macro’-advantages of bioethanol reduces dependency on fossil fuel imports reduces greenhouse gas emissions has a positive net energy balance could promote advances in biotechnology provides new outlets for farmers opens up new economic possibilities in various developing countr
Slide 18: Bioethanol market
crop.~energies ~ _— Bioethanol market Member of the Group SUDZUCKER pam
Slide 19: Governmental promotion of bioethanol in selected regions
Governmental promotion of bioethanol in selected regions USA Europe Environmental Biofuels Directive Protection Act Energy Tax Directive Energy Policy Act Biomass action plan 6% 36% EU strategy for Biofuels Greenbook Production: 2.7 Mio m3 Production: 16 Mio m3 14% Asia 36% China: 5 years Plan Brazi
Slide 20: National legislations underpin EU targets
National legislations underpin EU targets 2005 EU-25 gasoline demand National legislations Austria: Mandatory blending 2,5% today, 4,3% from Oct. 1st 2007 and 5.75% from Oct. Rest 11 1st 2008 (energy content) + tax reduction Denmark22 Germany 23 Belgium Belgium: Licenses for 250,000m3 + tax Swed
Slide 21: Example: Germany
Example: Germany Blending quotas and implied demand 1.51 Mio. m3 % 6,0 1.20 5,0 0.88 Mio. m3 4,0 0.54 Mio. m3 3,0 Mio. m3 2,0 1,0 0,0 2007 2008 2009 2010 Energy (cal) Volume Blending obligation of 1.2 % (cal), rising by 0.8 % annually to 3.6 % (cal) in 2010 Remaining gap due to total quota of 6.
Slide 22: Compelling growth expected in Europe
Compelling growth expected in Europe 10,0 Further possible growth potential beyond 2010 7,9 Ethanol in Mio. m³ Higher blending limits (e.g. 10%) technically feasible Modified fuel specifications allowing for higher blending 2,5 2,7 Increasing number of Flexible Fuel Vehicles 0,9 CAGR > 50% (e.
Slide 23: Key drivers for Bioethanol pricing
Key drivers for Bioethanol pricing Key drivers of European bioethanol price are Overall supply/demand situation Input factors Pricing of traditional fuels Sellers market with individual, short-term contracts Liquid commodity futures for ethanol currently only on the BM&F in Brazil Comp
Slide 24: CropEnergies / Production
crop.~energies ~ _— CropEnergies / Production Member of the Group SUDZUCKER pam
Slide 25: Europe's largest existing bioethanol plant as nucleus for expansion
Europe’s largest existing bioethanol plant as nucleus for a compelling expansion Key facts and figures Competitive advantages Proven production technology Design of plant with continuous fermentation Flexibility through multi-feedstock technology High quality products Strong brands , Proti
Slide 26: A pure play focused on bioethanol targeting leading position in Europe
A pure play focused on bioethanol targeting leading position in Europe… Production capacity of Ethanol in ‘000 m3 New plant in Wanze, Belgium 4 Expansion into French bioethanol sector 3 Annex plant in Zeitz 2 300 Expansion of 1 existing Zeitz plant 100 2.700 40 60 260 2006 EU market volume ('000m³/a
Slide 27: Crop Energies
Crop Energies Dunkirk Ethanol Volume 2009 storage (in '000 m3/a) Zeitz 360 Wanze ca. 300 Dunkirk 100 Total 700-750 France Zeitz (100,000m3/a) - Wheat growing area - Cheap energy - Access to sugar - Vicinity to refineries Wanze - Access to waterways Wanze Zeitz - Access to sugar (300,000m3/a) (360,00
Slide 28: Financials / Outlook
crop.~energies ~ _— Financials / Outlook Member of the Group SUDZUCKER pam
Slide 29: Financial and operational highlights
Financial and operational highlights 9M 2006/07 9M 2005/06 Δ Ethanol Production Output (1.000 m³) 165.0 60.0 105.0 175.0% (in Mio. €) Revenues 98.2 33.0 65.2 197.6% Operating Profit 13.0 -17.4 30.4 - Margin (%) 13.0% n.a. Restructuring costs and special item s -1.5 0.0 Income from operations 11.4 -1
Slide 30: Income Statement – 9M 2006/07
Income Statement – 9M 2006/07 (in Mio. €) 9M 2006/07 9M 2005/06 Δ Revenues 98.2 33.0 105.0 175.0% Operating Profit 13.0 -17.4 30.4 - Restructuring costs and special item s -1.5 0.0 Income from operations 11.4 -17.4 28.8 - Financial Result -1.7 -3.0 1.3 Earings before income taxes 9.7 -20.4 30.1 - Ta
Slide 31: Cash flow – 9M 2006/07
Cash flow – 9M 2006/07 (in Mio. €) 9M 2006/07 9M 2005/06 Δ Gross cash flow 16.3 -16.2 32.5 Change in net current assets -1.4 -49.1 47.7 Net cash flow from operating activities 14.9 -65.3 80.2 Cash flow from investing activities -17.8 51.1 -68.9 Cash flow from finacing activities 210.0 14.2 195.8 Cha
Slide 32: Balance sheet – 9M 2006/07
Balance sheet – 9M 2006/07 (in Mio. €) 9M 2006/07 9M 2005/06 Δ Non current assets 159 134 25 Cash 207 0 207 Current assets 22 35 -13 Total assets 388 169 219 Shareholder's equity 277 10 267 Equity ratio 71.5% 5.7% Financial debt 79 147 -68 Cash / cash equivalents 207 0 207 Net Financial assets (-)/d
Slide 33: Outlook
Outlook 2006/07 Production ca. 220,000 m3 Ethanol Sales > 135 Mio. € Operating margin > 13% IR/ TE/ 17.01.2007 33
Slide 34: Disclaimer
Disclaimer This presentation is made by CropEnergies AG (the "Company") solely for use at the investor meetings and is strictly confidential. It is furnished to you solely for your information and may not be copied, distributed or otherwise made available to any other person by any recipient. Neithe
Slide 35: Appendix
crop.~energies~ j; _— Appendix Member of the Group SUDZUCKER pam
Slide 36: The Bioethanol production process at CropEnergies
The Bioethanol production process at CropEnergies Fermentation Start End Milling Saccharification Wheat grist Sugar Mash Yeast Pelleting Ethanol Separation Mash dissolution Solids Drying Calculation: 2.8 tons of wheat = 1 ton of ProtiGrain + 1 m3 Ethanol IR/ TE/ 17.01.2007 36