Attached files
ANNUAL MEETING 2010
Southwest Iowa Renewable Energy
The following information contains, or may be deemed to contain,
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended. These forward-looking statements
include all statements regarding the current intent, belief or expectations
regarding matters covered and all statements which are not statements of
historical fact. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. The future
results of the issuer may vary from the results expressed in, or implied
by, forward-looking statements, possibly to a material degree. Since these
factors can cause results, performance and achievements to differ
materially from those discussed in this presentation, you are cautioned
not to place undue reliance on the forward-looking statements. Southwest
Iowa Renewable Energy, LLC (“SIRE”) will update these forward-looking
statements to reflect any material changes occurring prior to the
completion of the offering. For a discussion of some of the important
factors that could cause results to differ from those expressed in, or
implied by, the forward-looking statements contained herein, please refer
to SIRE’s Annual Report (SEC File No. 083-00131), in particular, the
“Risk Factors” section. The forward-looking statements in this document
are excluded from the safe harbor protection of Section 27A of the
Securities Act of 1933.
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended. These forward-looking statements
include all statements regarding the current intent, belief or expectations
regarding matters covered and all statements which are not statements of
historical fact. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. The future
results of the issuer may vary from the results expressed in, or implied
by, forward-looking statements, possibly to a material degree. Since these
factors can cause results, performance and achievements to differ
materially from those discussed in this presentation, you are cautioned
not to place undue reliance on the forward-looking statements. Southwest
Iowa Renewable Energy, LLC (“SIRE”) will update these forward-looking
statements to reflect any material changes occurring prior to the
completion of the offering. For a discussion of some of the important
factors that could cause results to differ from those expressed in, or
implied by, the forward-looking statements contained herein, please refer
to SIRE’s Annual Report (SEC File No. 083-00131), in particular, the
“Risk Factors” section. The forward-looking statements in this document
are excluded from the safe harbor protection of Section 27A of the
Securities Act of 1933.
CONFIDENTIALITY
Plant Completion $200,000,000 Investment
FISCAL YEAR 2009 IN REVIEW
SIRE PLANT COST
Millions
Grain and Feed Storage $ 10.0
Rail Loop Track $ 13.0
Steam Line $ 15.5
Turbine $ 5.5
Gas Boilers and Natural Gas $ 7.0
Water Treatment $ 2.0
Land $ 2.0
Infrastructure $ 22.0
Plant Process $123.0
Total $200.0
Cost Per Gallon $ 1.82
GRAIN AND FEED
STORAGE
STORAGE
Total Cost $10.0 Million
Bushel capacity 2.6 Million
1,000,000 Bushel Storage
1,000,000 Bushel Storage
v50,000 bushels/hour unloading
50,000 bushels/hour unloading
vAverage 32,000 bushels/hour
Average 32,000 bushels/hour
vAverage Basis $-(.16) per bushel
Average Basis $-(.16) per bushel
Competition
Competition
vAll truck delivery within 75 mile radius
All truck delivery within 75 mile radius
Downtown Location
Downtown Location
1,600,000 Bushel Storage
1,600,000 Bushel Storage
Feed
vHigh Protein
vHigh Oil
vGolden Color
vExcellent Flow Ability
v13,000 Tons Storage
• 4.0 Tons-Silo
• 9.0 Tons-Building
DDG Load Out
DDG Load Out
13,000 Tons Storage
13,000 Tons Storage
RAIL LOOP TRACK
Looped Track
Looped Track
Freight Advantage-West Coast, Dallas, East Coast
Freight Advantage-West Coast, Dallas, East Coast
Distillers Dried Grain
Lease Cars-200 (Net)
Lease Cars-200 (Net)
Distillers Dried Grain
Lease Cars-200 (Net)
Lease Cars-200 (Net)
10 year lease
10 year lease
FY 2009-35% DDG Rail
FY 2009-35% DDG Rail
FY 2010-42% DDG Rail
FY 2010-42% DDG Rail
Alcohol Leased Cars-325
Alcohol Leased Cars-325
10 Year Lease
10 Year Lease
FY 2009-97% Alcohol Rail
FY 2009-97% Alcohol Rail
FY 2010-93% Alcohol Rail
FY 2010-93% Alcohol Rail
Looped Track
Looped Track
RAIL DATA
v Iowa Interstate Railroad currently handles initial
switching of cars from SIRE.
switching of cars from SIRE.
v This contract allows SIRE direct access to five Class 1
railroads to include
railroads to include
– Union Pacific (Local)
– Burlington Northern (Local)
– Kansas City Southern (Kansas City, KS)
– CSX Railroad (Chicago, IL)
– Norfolk Southern (Chicago, IL)
Locally SIRE can ship cars via IAIS, BN and UP. KCS is
serviced from Omaha/ Council Bluffs through the BN.
CSX and NS are serviced through IAIS in Chicago.
serviced from Omaha/ Council Bluffs through the BN.
CSX and NS are serviced through IAIS in Chicago.
U
P
P
BN
IA
IS
IS
STEAM LINE
10 Year Steam Line Contract
10 Year Steam Line Contract
6,600 Ft.
6,600 Ft.
3 Year Fixed Price + Indexed After 3 Years
3 Year Fixed Price + Indexed After 3 Years
VS.
VS.
Volatile Natural Gas Price
Volatile Natural Gas Price
TURBINE
Steam turbine transferred to MEC December, 2009
Steam turbine transferred to MEC December, 2009
Attractive 5 Year Electric Rate
Attractive 5 Year Electric Rate
BOILER
Natural Gas Boilers
Natural Gas Boilers
Cost-$7,000,000
Cost-$7,000,000
FISCAL YEAR 2009 IN REVIEW
Staff Development and Survival
v Year of challenges and start up
v Employee turnover 31%
Operations
v Started February 2009
v Production ran at 84% of nameplate capacity
v Steam Energy was 35% of MMBTU used
Safety
v Average ERI Safety Audit Score-84%
v Total days without a Lost Time Accident-173 days
Banking
v Completion of banking agreement in August 2009
v EBITDA for Fiscal Year - ($2,900,000)
Geoff Christensen
Gina Chapman and Betty Harmsen
Duane Herperger
CURRENT FISCAL YEAR 2010 IN REVIEW
Personnel
v Continued development of staff for consistency and stability
v Employee turnover 6%
Continued improvement in Plant Operations
v Production running at 100% of nameplate capacity
v Steam energy is 74% of MMBTU used
Safety
v Average ERI Safety Audit Score-92%
v Total days without a Lost Time Accident-135 on going days
EBITDA
v 3 Months ended December 31, 2010
v + $5,266,000
v Current with all bank obligations
FISCAL YEAR COMPARISON
FY 2009 FY 2010
7 Months 3 Months
Employee Turnover 31% 6%
Operating Capacity 84% 100%
Steam Line MMBTUs VS.
Natural Gas MMBTUs 35% 74%
Safety ERI Score 84% 92%
Consecutive Days W/O Lost Time 173 135 on going
EBITDA ($2,900,000) +$5,266,000
FUTURE OPERATION PLANS
Future Improvements
v Shut down
v Additional grain storage
v Improved water treatment facility
Increased capacity above nameplate
v Minimum capital improvements
v Additional value-added products
• Corn Oil
2010 PRODUCTION
ANNUAL MEETING 2010
Southwest Iowa Renewable Energy