Attached files
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| EX-99.1 - PRESS RELEASE - Gevo, Inc. | d392491dex991.htm |
| 8-K - FORM 8-K - Gevo, Inc. | d392491d8k.htm |
 Second Quarter
2012 Earnings Call
August 7, 2012
©
2012 Gevo, Inc. | 1
Exhibit 99.2 |
 Forward-Looking Statements
©
2012 Gevo, Inc. | 2
Certain statements within this presentation may constitute “forward-looking
statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements relate to a variety of
matters, including but not limited to: the timing and costs associated with and the
availability of capital for Gevo’s scheduled retrofits of existing ethanol
production facilities, its future isobutanol production capacity, the timing associated with bringing such
capacity online, the availability of additional production volumes to seed additional market
opportunities, the expected applications of isobutanol, including its use to produce
renewable paraxylene, PET, isobutanol-based fuel blends for use in small engines,
and ATJ bio-jet, addressable markets, and market demand, Gevo’s ability to produce
commercial quantities of isobutanol from cellulosic feedstocks, the suitability of Gevo’s
iDGs™ for the animal feed
market, the expected cost-competitiveness and relative performance attributes of isobutanol
and the products derived from it, the strength of Gevo’s intellectual property
position and other statements that are not purely statements of historical fact. These
forward-looking statements are made on the basis of the current beliefs, expectations
and assumptions of Gevo’s management and are subject to significant risks and uncertainty. All such
forward-looking statements speak only as of the date they are made, and Gevo assumes no
obligation to update or revise these statements, whether as a result of new
information, future events or otherwise. Although Gevo believes
that the expectations reflected in these forward-looking statements are reasonable, these
statements involve many risks and uncertainties that may cause actual results to differ
materially from what may be expressed or implied in these forward-looking
statements. For a discussion of the risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as well as risks relating
to the business of the
company in general, see the risk disclosures in Gevo’s Annual Report on Form 10-K for
the year ended December 31, 2011, as amended, and in subsequent reports on Forms
10-Q and 8-K and other filings made with the Securities and Exchange Commission
by Gevo. This presentation is based on information that is generally available to the
public and does not contain any material, non-public information.
This presentation has been prepared solely for informational purposes and is neither an
offer to purchase nor a solicitation of an offer to sell securities.
|
 Today’s
Call Agenda
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2012 Gevo, Inc. | 3
Corporate Overview –
Dr. Patrick Gruber, CEO
Luverne, MN commercial plant update
Other recent corporate developments
Review of Financial Highlights –
Mark Smith, CFO
Summary and 2012 Anticipated Milestones –
Dr. Patrick
Gruber, CEO
Q&A
Review
of
Intellectual
Property
Development
–
Brett
Lund,
EVP & General Counsel |
 World’s
1 st
Commercial-Scale Biobased
Isobutanol Plant
©
2012 Gevo, Inc. | 4
Startup of Luverne, MN plant
Isobutanol produced in 250,000-gallon commercial fermenters
Railcar shipments on the way to both chemical and non-automotive fuel
customers
Startup learning curve |
 Source: Company
materials. Bio-PX/PET
“Cleaner Performance”
“Lower Cost, Drop-In”
C4 Market
“Energy Security”
“Structurally Short
Supply”
Gasoline
Blendstock
Specialty
Chemicals
“Green Supply Chain”
Bio-Jet
Gevo’s
Commercialization Strategy
Hydrocarbon
Fuels
“Next Generation
Biofuel”
Co-Product
Revenues
“Value-Added Proprietary
Feed”
“Cleaner, Greener, Cheaper”
“Partnering Along the Supply Chain”
©
2012 Gevo, Inc. | 5 |
 Beta
Renewables
(Chemtex
and
TPG
JV)
–
JDA
to
develop
cellulosic
isobutanol production process
–
Integrates
cellulosic technologies with Gevo’s technologies
–
Commercialization of competitively priced jet-fuel/chemicals/fuels
Malaysian
government
(East
Coast
Economic
Region
Development
Council,
Malaysian Biotechnology Corp and the State Government
of
Terengganu) –
Collaborative agreement
–
Strategically partnering along the supply chain
–
Entering market due to “demand pull”
–
Cellulose to isobutanol
Toray
Industries,
Inc.
–
Partnership
to
produce
rPX-PET
–
Made upfront capital investment
–
Toray purchasing initial volumes from new pilot plant
Recently Announced Partnerships/Collaborations
©
2012 Gevo, Inc. | 6 |
 World’s
first test flight using 50/50 ATJ and JP-8 fuel ATJ blend produced at a
demonstration facility in Texas Test flight in a USAF A-10 Thunderbolt jet
aircraft Gevo ATJ Fuel Makes History in USAF Flight
“It flew like a usual A-10 without any issues.”
–
Maj. Olivia Elliott, an A-10 pilot and evaluator
for the test flight
“You won’t be able to determine the
difference and you won’t care, because all
perform as JP-8.”
–
Jeff Braun, Chief for the Air
Force Alternative Fuel Certification Division
©
2012 Gevo, Inc. | 7 |
 Sasol Brochure to
Market Gevo Isobutanol ©
2012 Gevo, Inc. | 8 |
 As a
"primary processor" Gevo benefits from capturing 100% of the nutritional value
of corn in our iDGs
TM
Historically value of animal feed is highly
correlated to corn
Gevo's net carbohydrate costs, despite
increased corn cost, are competitive worldwide
–
Brazil's largest cane miller’s most recent publicly
filed cost of goods sold (cane sugar) was
$0.15/lb. for the quarter ended December 2011
and the World Sugar price in July 2012 was
$0.23/lb.
Gevo iDGs
TM
Natural Hedge as Corn Prices Climb
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2012 Gevo, Inc. | 9
Net Carbohydrate Cost Sensitivity
iDGs @ 75% of the corn
value
iDGs @ 110% of the corn
value
Corn Price per Bushel
$6.00
$7.00
$7.00
$8.00
price per lbs (56lbs/bu)
$0.11
$0.13
$0.13
$0.14
DDG credit per bushel (17lbs)
$1.37
$1.59
$2.34
$2.67
Net carbohydrate cost per bushel
$4.63
$5.41
$4.66
$5.33
Net Carbohydrate/lb *
$0.13
$0.15
$0.13
$0.15
* 36lbs of carbohydrate per bushel
Real Life Example -
as of Aug. 6, 2012
CBOT
$8.10
+/-
local basis
-$0.31
Local corn
$7.79
Local corn per pound
$0.14
Local DDG price/ton
$286.00
Local DDG price/lb
$0.14
Local DDG price as % of local Corn
102.8%
DDG credit per bushel (17lbs)
$2.43
Net Carbohydrate cost per bushel
$5.36
Net Carbohydrate/lb
$0.15
Source: Gevo, partners, publicly available filings |
 Preliminary
Injunction Summary: Judge denies Butamax’s preliminary injunction
Decision replaced previous court order
Decision strengthens Gevo defense for April 2013 Trial
Honorable Judge Sue L. Robinson’s judicial opinion, in the context of
denying the motion for preliminary injunction, stated the plaintiff
(Butamax
TM)
likely
“does not hold a valid patent,
nor would the defendant (Gevo) infringe if it did.”
Defending Gevo’s IP Portfolio:
Gevo files Preliminary Injunction to block Butamax’s use
of U.S. Patent No. 8,133,715
Gevo files lawsuits against Butamax alleging infringement
Expecting several new patents in the next quarter which will
continue to advance our industry leading intellectual property
position
©
2012 Gevo, Inc. | 10
2Q12 Intellectual Property Highlights |
 2Q12
Intellectual Property Highlights
U.S. Patent No. 8,193,402 “Renewable Compositions”
–
Integrated processes for preparing renewable automotive and jet
fuels from biomass
U.S Patent No. 8,232,089 “DHAD Enzyme Enhancement”
–
Engineered pathway utilizing DHADs improving the efficiency of
isobutanol production in yeast
U.S. Patents No. 8,158,404 and No. 8,153,415 “Reduced
By-Product Accumulation”
–
Eliminates carbohydrate-hijacking pathways and improves the
yield of isobutanol
©
2012 Gevo, Inc. | 11 |
 Financial
Overview Three Months Ended June 30,
In millions except per share data
2012
2011
Revenue
Ethanol Sales and Related Products, Net
$5.6
$14.3
Grant and R&D Revenue
$1.4
$0.2
Total Revenue
$7.0
$14.5
Gross (Loss) Margin
$(1.5)
$0.9
Total Operating Expenses
$14.3
$12.5
Loss from Operations
$(15.7)
$(11.6)
Net Loss
$(16.2)
$(12.5)
Non-GAAP Loss from Operations
$(13.6)
$(8.7)
Net EPS -
Basic & Diluted
$(0.62)
$(0.48)
Weighted-Average
Common
Shares
-
Basic
&
Diluted
26.2
25.6
Capital Expenditures
$26.5
$1.5
Reconciliation:
Loss from Operations
$(15.7)
$(11.6)
Depreciation & Amortization
0.8
1.2
Non-cash stock-based compensation
1.3
1.7
Non-GAAP loss from operations
$(13.6)
$(8.7)
©
2012 Gevo, Inc. | 12 |
 Balance
Sheet 30-Jun-12
31-Dec-11
Assets
Current assets:
Cash and cash equivalents
$38.6
$94.2
Accounts receivable
1.1
2.9
Inventories
2.9
3.8
Prepaid expenses and other current assets
1.7
1.8
Total current assets
44.3
102.7
Property, plant and equipment, net
69.7
28.8
Deposits and other assets
3.5
1.5
Total assets
$117.5
$133.0
Liabilities
Current liabilities:
$20.6
$12.6
Accounts payable, accrued liabilities and other
12.2
3.5
Current portion of secured debit
32.8
16.1
Total current liabilities
21.8
24.8
Long-term liabilities:
54.6
40.9
Total liabilities
Total stockholders' equity
62.9
92.1
Total liabilities and stockholder equity
$117.5
$133.0
©
2012 Gevo, Inc. | 13 |
 Q&A
|