Aemetis, Inc · NASDAQ:AMTX
Aemetis — Investor Presentation (June 2017)
30 slides from Aemetis's investor presentation, June 2017
Slide 1: The Aemetis Biorefinery
THE AEMETIS BIOREFINERY (NASDAQ: AMTX) Advanced Biofuels May/June 2017
Slide 2: Forward-looking statements and non-GAAP information
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ
Slide 3: Aemetis Mission
AEMETIS MISSION Aemetis is an international renewable fuels and biochemicals company. Using patented industrial biotechnology, our mission is to convert first generation ethanol PAST PRESENT FUTURE and biodiesel plants into advanced biorefineries using waste materials to produce high G1 G2 G3 value
Slide 4: Aemetis Overview
AEMETIS OVERVIEW Founded in 2006 by biofuels Own/operate 60M gallon Owner and licensee of granted industry veteran (co-founder ethanol plant in California - patents on technology to produce Pacific Ethanol and EPM) Largest biofuels refinery advanced biofuels and in the state biochemicals $143M reven
Slide 5: Our Team
OUR TEAM Eric McAfee - Chairman and CEO • • Founder of Aemetis (NASDAQ: AMTX) and co-founder of Pacific Ethanol (NASDAQ: PEIX) Founding shareholder of oil production company Evolution Petroleum (NYSE: EPM) • Founded seven public companies and funded twenty-five private companies as principal investo
Slide 6: Industry & Market Overview
INDUSTRY & MARKET OVERVIEW 6
Slide 7: Oil Recovery
OIL RECOVERY Crude Oil Price is recovering Source: Macrotrends.Net 7
Slide 8: The Increasing Renewable Fuel Standard Mandate
THE INCREASING RENEWABLE FUEL STANDARD MANDATE In order to meet the federal Renewable Fuel Standard, obligated parties are required to blend ethanol and biodiesel in increasing quantities each year U.S. Renewable Fuel Standard 40.0 “Conventional Biofuels” must reduce greenhouse gas emissions by 20%
Slide 9: California Low Carbon Fuel Standard
CALIFORNIA LOW CARBON FUEL STANDARD Renewable Diesel Biofuels Lead Carbon Reduction in California California LCFS Carbon Credit Generation by Fuel Type, 2011-2015 17% Ethanol Electricity Renewable Diesel BIO-CNG Biodiesel Ethanol 51% 17% Biodiesel BIO-LNG Fossil CNG Fossil LNG 5% 4% 3% Source of cre
Slide 10: California Low Carbon Fuel Standard Created Large Market
CALIFORNIA LOW CARBON FUEL STANDARD CREATED LARGE MARKET Aemetis Ethanol and Biodiesel plants When Aemetis produces cellulosic ethanol, approved for LCFS pathways in the selling price is about $4.50/gallon January 2016 • LCFS premium is $0.70-$0.80 per gallon India biodiesel plant was approved for l
Slide 11: India Biodiesel Market Size
INDIA BIODIESEL 6.4% 1.5% 5.0% MARKET SIZE 4.1% 13.0% 8.9% India diesel market size ~25B gallons 5x bigger than gasoline market 6.4% 3.2% 0.5% $10B diesel subsidy eliminated in October 2014 9.5% 70% Diesel consumption transport and 30% 28.2% non-transport by Market Segment 13 of the 20 most polluted
Slide 12: India Biodiesel Market Expansion
INDIA BIODIESEL MARKET EXPANSION 05/2017 10/2014 In May 2017, British Petroleum 50 MGY biodiesel and entered into a 3 year agreement In October 2014, the India refined glycerin plant in to supply biodiesel in to government eliminated India can produce about $10 billion of annual European Union and p
Slide 13: Business Overview
BUSINESS OVERVIEW 13
Slide 14: 3 Year Roadmap
3 YEAR ROADMAP For Product Revenues CURRENT FUTURE V O LFUUM TEU RTEA R G E T EBITDA TARGET 90-95% 40-50% 60 mgy ETHANOL 10-15% CELLULOSIC 0% 25-35% 25-30 mgy 35-45% ETHANOL RENEWABLE JET, DIESEL, 5-10% 25-35% 60-70 mgy 10+% & BIODIESEL Improve margins by deploying renewable diesel Aemetis is migrat
Slide 15: Growth Strategy
GROWTH STRATEGY Three Major Renewable Fuel Markets Ethanol Plants Biodiesel Plants Jet/Diesel Plants • Steam Turbine (CHP) • Distilled Biodiesel • Advanced Clean-In-Place • ChevronLummus/ARA global • Refined Glycerin technology license for 100% • Liquid CO2/Dry Ice replacement, renewable jet/diesel
Slide 16: California Ethanol Plant
CALIFORNIA ETHANOL PLANT 16
Slide 17: India Biodiesel and Glycerin Plant
INDIA BIODIESEL AND GLYCERIN PLANT 17
Slide 18: New Markets Overview
NEW MARKETS OVERVIEW 18
Slide 19: Intellectual Property
INTELLECTUAL PROPERTY Aemetis operates an R&D lab in Maryland and holds many granted biofuels technology patents PATENTS Awarded patents on enzyme and Chevron microbe technology Edeniq Lanzatech Lummus/ARA 2.5% Cellulosic Scale up to 50% Renewable Jet & Diesel Fuel Exclusive license to patented micr
Slide 20: Edeniq Background
EDENIQ BACKGROUND ECONOMIC BENEFITS FROM EDENIQ PROCESS Founded in 2008 3 KEY BENEFITS EDENIQ PATHWAY PLATFORM Edeniq received $100M in funding to MORE ETHANOL Starch Accessibility develop patented milling and enzyme • FROM CORN • Corn Fiber to Cellulosic technology, increasing starch ethanol • 15-6
Slide 21: Edeniq Product Platform
EDENIQ PRODUCT PLATFORM Up to 7% ethanol production increase at first generation plants + A B CELLUNATOR MILLING MIX TANK MILLED PARTICLES SHEAR UNIFORM SIZES LIQUEFACTION FERMENTATION ETHANOL Large and small Starch and corn Integrated cellulose particles kernel fiber and traditional ethanol product
Slide 22: Lanzatech Technology
LANZATECH TECHNOLOGY Lanzatech, founded in 2005, has raised more than $200M Patents pending 250 Six pilot plants worldwide 2 2 2 Commercial plants being built in Europe and Asia at steel mills FEEDSTOCK GASIFICATION LANZATECH ETHANOL PLANT INTEGRATION Patented BIOMASS Produces CO, microbe Distillati
Slide 23: Aemetis Jet/Diesel
AEMETIS JET/DIESEL CH Jet/Diesel Technology Benefits CATALYTIC HYDROTHERMOLYSIS HYDROPROCESSING FRACTIONATION ARA’s CH technology uses water as catalyst to Triglyceride Oils + Water Hydrogen convert vegetable and animal oils into bio- intermediate similar to crude oil Same hydrocarbon types as petro
Slide 24: Financial Overview
FINANCIAL OVERVIEW 24
Slide 25: Aemetis Financial Performance
AEMETIS FINANCIAL PERFORMANCE ($ in thousands) 2011 2013 2014 2015 2016 Income Statement 25 Revenues $141,858 $177,514 $207,683 $146,649 $143,158 Cost of Goods Sold 137,216 159,220 170,539 142,450 131,559 Gross Profit/ (Loss) $4,642 $18,294 $37,144 $4,199 $11,599 Expenses SG&A $8,571 $15,275 $12,595
Slide 26: EB-5 Summary
EB-5 SUMMARY $35M $34M $1M Phase I: $36 million raised Received into escrow Released to Remaining in escrow for USCIS approval Aemetis from awaiting release to Phase II: $50 million commenced in September 2016 escrow Aemetis upon USCIS approval Benefits of EB-5 Financing to Aemetis Aemetis signed in
Slide 27: Financing Plan to Cut Interest Expense by 80% Using EB-5 Funding
FINANCING PLAN TO CUT INTEREST EXPENSE BY 80% USING EB-5 FUNDING Aemetis’ financing plan is to repay its high cost EPS increase of about senior bridge loan with low cost EB-5 funding $0.60 based on: and funds from operations Interest rate reduction from EB-5 Phase I Status 14% to 3% on $68.5 million
Slide 28: Long Term Industry Model (LTIM)
LONG TERM INDUSTRY MODEL (LTIM) LTIM 2014 2015 2016 Revenue ($ in millions) 100% $208 $147 $143 Gross Margin 20-25% 18% 3% 8% Operating Income 15-20% 12% -6% -1% First generation ethanol in the U.S. is a maturing market generating cash flow to fund debt reduction and company growth Aemetis is launch
Slide 29: Investment Summary
INVESTMENT SUMMARY Strong Long-term Demand for Biofuels Plants Strategically Located to Serve Large Markets Substantial Upside from Next Generation Technology Experienced Management Team 29
Slide 30: www.aemetis.com
www.aemetis.com