2014 Spring Investment Conference Company Presentation June 3, 2014
Todd Becker President & Chief Executive Officer Jerry Peters Chief Financial Officer Green Plains, Inc. 450 Regency Parkway, Suite 400 Omaha, NE 68114 www.gpreinc.com NASDAQ: GPRE 3
Vertically Integrated Business with Diverse Revenue Streams 30.8 million bushels of Green Plains is a Fortune 1000, diversified storage and handling capacity, including ethanol commodity processing business with grain Agribusiness…
Since the Last Time We Met Acquired three ethanol plants, increasing capacity by 38% with an additional 280 million gallons Completed construction of 9.4 million bushels of grain storage capacity at six ethanol plants and three…
Proven Risk Management and Hedging Expertise Ethanol Operating Income + Depreciation & Amortization / Gallon 0.55 Due to prudent risk management, Green 0.45 Plains realized crush spread outperformed the Average Daily 0.35 market in…
Ethanol Demand is Growing Supply is steady/flat Overview Global Ethanol Production The global ethanol industry produced an estimated 23.4 billion gallons in 2013 USA Brazil Europe China Other Grew at a 10% CAGR from 2007 ethanol…
Economics Still Drive Blending Decisions Ethanol remains at a significant discount to wholesale gasoline on the forward curve Refiners saving at least 0.04 per gallon on average refining for CBOB 85% of the gas supplied to terminals…
What is Driving World Demand U.S. ethanol is the cheapest fuel molecule in the World World is octane and oxygenate short Ethanol has an octane rating of 113 per gallon Used to upgrade fuel to premium and sub-grade to spec Reduces CO2…
Increasing World Demand for Ethanol Will Be a Strong Fundamental Driver going Forward. Canada enacted a 5% renewable fuel standard in 2010 Brazil looking to raise their ethanol blend to 27.5% Israel is implementing a RFS, Mideast…
U.S. Gasoline Demand Better than Expected -million barrels/day- 9.75 9.50 9.25 9.00 8.75 8.50 8.25 8.00 2014 2013 7.75 Blue shaded region represents the most recent 5-year range 7.50 J F M A M J J A S O N D Source:…
Stocks v. Margins is the Single Largest Factor Driving Ethanol ProfitabilityCan We Rebuild Stocks (barrels in Ethanol Inventory vs. Crush Margins ( / gallon) thousands) 23,500 1.50 22,500 1.30 21,500 1.10 0.90 20,500 0.70 19,500…
Can the industry run to produce livestock feed and corn oil where ethanol is the by- product Estimated value of all feed co=products from ethanol 9.1 billion Industry can generate 50+ million tons of livestock feed of which 10…
BioProcess Algae Making Progress Integrated Option to stress On-site Crude and refined oils production since with sugars production of for fuels/chemicals 2009 powders High quality proteins with demonstrated performance and…
Maximizing the Value from Corn Sugar AUTOTROPHIC MIXOTROPHIC MIXOTROPHIC GROWTH GROWTH STRESSING INPUTS PRODUCTS Can integrate now Market diversity (high- (corn) as well as the value, high-protein future (cellulosics) feeds,…
Appendix
Liquidity and Capital Structure (in millions) Q1-2014 Q4-2013 Q4-2012 Q4-2011 Q4-2010 Gross Debt 642.5 735.2 663.3 636.8 669.0 Working Capital Financing 128.4 171.5 144.4 69.6 89.2 Term Debt 514.1 563.7 518.9 567.2 579.8 Cash &…
Condensed Balance Sheet (in millions) March 31, December 31, ASSETS 2014 2013 Current assets 616.6 633.3 Property and equipment, net 804.9 806.0 Other assets 90.9 92.7 Total assets 1,512.4 1,532.0 LIABILITIES AND STOCKHOLDERS EQUITY…
Consolidated Income Statement Summary (in millions, except per share amounts) Q1-2014 Q1-2013 Revenues 733.9 765.5 Gross profit 100.7 27.2 SG&A 22.4 14.5 Operating income 78.3 12.7 Interest expense 9.8 8.1 Income before income…
Non-GAAP Reconciliations (1) Green Plains uses certain Non-GAAP financial measures as defined by the Securities and Exchange Commission. These are measures of performance and not defined by accounting principles generally accepted in…
Ethanol Production Segment (in millions, except per gallon amounts) Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Gallons Sold 169.6 176.7 161.6 169.2 170.8 172.5 177.8 213.3 230.8 (1) Operating Income (Loss) (9.9) (11.0)…
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