Ampal-American Israel — Investor Presentation (August 2012)
26 slides from Ampal-American Israel's investor presentation, Aug 21, 2012
Slide 1: Introduction: Ethanol Project in Colombia
Introduction Ethanol Project in Colombia Feb 2012 General Comments
Slide 2: Project description: Key objectives
4 years of Development Licenses and Permits Acquisition of Lands Tax Review and Benefits Engineering and Design Local Training Legal Analysis & Review Environmental Compliance EPC Bid process Financial Structure Viability Nursery Development Loan Process Variety Selection Process Shareholder Negotia
Slide 3: Project area and key design parameters
Produce 112.8 million litres ethanol/year and 26 MWh of electricity To be sold in the Colombian market from 1.4 million tonnes of cane at 82 litres ethanol per ton of cane at 4,600 tons of cane per day From 9,850 hectares net of cane area grown under drip irrigation all owned and managed by the proj
Slide 4: Good climatic and soil conditions for cane production
Good climatic Climate well suited to cane production with zone potential irrigation yields good about 1,100 mm annual rainfall high temperatures mean max. 35 Full high levels of sunshine specially in drier months mechanization Flat topography well suited to mechanisation Drip irrigation with slopes
Slide 5: Ethanol Market Regulation
Ethanol Market MRE - Ethanol Project in Colombia Ethanol Market Regulation
Slide 6: Ethanol Market Regulation
The Colombian government has adopted a series of laws, decrees and resolutions to stimulate ethanol production, sale and consumption. The Ministry of Mines and Energy is responsible for regulating the price of ethanol. The price considers three references: Gasoline price, refined sugar price and a m
Slide 7: Ethanol Market Domestic Demand
Estimated demand at our area of inlfuence is 340 klts/day (10% more than our average production). All the current producers are located in the Cauca Valley. Bioenergy, Ecopetrol’s ethanol project and one other development are at an advanced stage of development, it is localted 120 kms south east Bog
Slide 8: Ethanol Market Domestic Ethanol Prices
COP$ US$ 3,000 1.4 1.2 2,500 1.0 2,000 0.8 1,500 0.6 1,000 Current local price: US1.28 lts (ex-works) 0.4 500 0.2 -- Nov-05 May-06 Nov-06 May-07 Nov-07 May-08 Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 COP/LtrUSD/Ltr Project status MRE - Ethanol Project in Colombia
Slide 9: Project status
Project status Work completed Land acquisition
Slide 10: Land acquisition, licenses and permits
The Project has a total of 9,803 hectares Purchased: 3,443 hectares Leased: 6,354 hectares Licenses & Permits Environmental License (2009) Water concession (2009) Deforestation Permit (2009) Free Trade Zone (2010) Port concession (2010) Plan Vallejo (2010) Irrigation Functional Unit (2010) UPME (201
Slide 11: Pictures: Variety testing
Project status Pictures — Variety testing ‘Apr 2009
Slide 12: Slide 12
Slide 13: Slide 13
Slide 14: Design/Engineering work completed
Project status Design/Engineering work Agricultural and Infrastructure Completed Designs Basic designs of the water intake and conveyance Design of Irrigation Units Principal and secondary drainage design Harvesting and Transportation design Basic design for water distribution Basic electrical desig
Slide 15: EPC contractor
Plot: Irrigation units and water distribution to units FEED made by Procknor and KTI-Technip The work completed allowed the project to be bid for a The independent firm Four team approved the design. full EPC contemplating all the project’s scope Geotechnical study for the industrial plant concluded
Slide 16: Main consultants and advisers
Main consultants and advisers Procknor (Brazil) industrial plant engineering CASS Constructores (Colombia) CAPEX estimate for the KTI Technip (Italy) industrial plant engineering infrastructure and cost estimate Fundación Puerto Rastrojo (Colombia) environmental and Four team (Brazil) - industrial p
Slide 17: Financing: BNDES credit facility
Project status Financing BNDES Credit facility with BNDES and a credit insurance from SBCE (95% commercial risk and 100% political risk). BUYER'S CREDIT FACILITY Conditions Amount: US269.5 M Interests: Libor (5 years) + 460 bps Grace : 48 months Tenor: 12 years Guarantee Structure Full non-recourse
Slide 18: Financials
Financials MRE - Ethanol Project in Colombia
Slide 19: Financials
Financials MRE - Ethanol Project in Colombia
Slide 20: Financials: Basic assumptions and cash flow
x Basic Assumptions Yield (Tons/ha) Irrigated Area (%) Harvest season (days) Ethanol Price (US/It) Domestic Market (%) Cash Flow (000) 140 100% 2S5-300 0.9 100% Year 2012-2014 2015 2016 2017 2018 Revenue Operating Expenses Amortization + Depreciation 106,868 33,161 19,651 111,136 33,440 19,651 111,1
Slide 21: Ethanol price projections
Ethanol Price (USD/Lt) 1.6 1.41.4 1.34 1.21.19 1.18 1.22 1.16 1 0.8 0.6 0.4 0.2 Current local price: US1.28 lts (ex-works) 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 The price used in the financial model is very conservative - USD 0.9 /lt Fi
Slide 22: Equity Partners: ETH (Brazil)
Equity Partners Main prospects ETH (Brazil) ? Part of Oderbrecht Group ? Due diligence process began in March 2011 ?Significant agro-industrial experience. +18 million tons of crushing capacity ? Set to expand additional 100k has/year in order to reach a crushing capacity of 40 M Tons/yr ?Wants to g
Slide 23: Equity Partners: Noble (US)
Equity Partners Main prospects NOBLE (US) Noble is one top 10 trading companies Noble has significant experience in sugar cane with a crushing capacity +17 Million tons/yr Noble would be the offtaker of the project offering the best commercial net back Noble would take a minority stake
Slide 24: Equity Partners: Grupo Gloria (Peru)
Equity Partners Main prospects Grupo Gloria (Peru) ? One of Peru’s largest groups and the largest sugar producer ? Revenue over US1.6 Billion/yr ? Interested in control ? Set Colombia as a target country ? Would expand the project size ? Just began the due diligence process ? Has indicated interest
Slide 25: Equity Partners: Ecopetrol (Colombia)
Equity Partners Main prospects Ecopetrol (Colombia) Colombia’s largest company by revenue and assets Oil & Gas company Two bio-fuel projects under construction (Biodiesel and ethanol) Has set aggressive goals in bio-fuels by 2015 Interested in majority stake
Slide 26: Equity Partners: Ecopetrol (Colombia)
Equity Partners Main prospects ; a Ecopetrol (Colombia) e ROL = Colombia’s largest company by revenue and assets = Oil & Gas company = Two bio-fuel projects under construction (Biodiesel and ethanol) = Has set aggressive goals in bio-fuels by 2015 = Interested in majority stake A\\
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