Segetis Presentation Austin December 2013


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Segetis Presentation Austin December 2013

  1. 1. Turning Levulinic Acid’s Potential as a Biobased Building Block into Reality December 17, 2013 RENEW. REINVENT. SUSTAIN. CHANGE THE WORLD.™
  2. 2. Renew We believe that biobased materials are a viable alternative to petrochemicals and contribute to improving quality of life Reinvent Our disruptive technology will turn Levulinic Acid’s potential as a Biobased Building Block into reality Sustain Supporting sustainable lifestyles by transforming Levulinic Acid into high performance materials reducing toxicity, air and environmental impact TM Renew.Reinvent.Sustain.Change the WorldTM 2
  3. 3. Ingredients for Success • • • • • • • • • Breakthrough Levulinic Acid & Derivatives Technology Added value for Minnesota’s renewable resources 30 employees with 5 year track record of achievement Intellectual Property portfolio for long-term advantage >$50bn addressable market opportunity Safe products provide compelling value proposition 3 years of repeat seed sales to strategic customers Over 50 active customer relationships Cash flow positive within 2 years of plant start-up Minnesota State and Segetis Make a Great Team 3
  4. 4. Savvy Investors Segetis has been backed by Venture Capital, Strategic and Private Equity Investors since its founding in 2006 Diverse mix of global investors 4
  5. 5. “Target, Wal-Mart, Whole Foods lead retail race to safer chemicals”* Method Detergent Segetis Formulation Aids: In Target stores today Seventh Generation Cleaners Method Dishwash *Mark Rossi, November 18, 2013 5
  6. 6. Segetis Plasticizer – Already in Market Facility Manager Biobased PVC Compound Biobased flex PVC product offering Wall and Door Products Preferred Procurement 6
  7. 7. Establishing Levulinic Acid as a Biobased Building Block Sugar Levulinic Acid (LA) Cellulosic Biomass Diverse, renewable feedstocks Segetis Bio-based PVC Plasticizer and Formulation Aids Bio-based Plastics Thermochemical conversion >$50bn markets 7
  8. 8. Added Value for Minnesota’s Renewable Resources Levulinic Acid Feedstock Options Corn Sugar Beet Sugar Cellulosic Sugar (from wood) Biomass Capacity   Supply Chain  Pilot LA Conversion Validated  In development Lower Cost – opens more markets Segetis Confidential Information 8
  9. 9. Getting Started: First Plant in Minnesota • First-of-its-Kind Levulinic Acid and Derivatives production – – – – Locate in the Iron Range Region Source corn syrup from ADM in Marshall, MN Start-up end of 2015 Innovative technology to diversify Iron Range Region economy • Project Cost Estimated at $92MM: – Capital $62MM – LA (22MM lb/yr) + Plasticizer (35MM lb/yr) – Process Development, Market Development and Registration $30MM • Provide economics and scale required to drive initial market adoption in strategic market segments • Next step toward market driven global rollout with conventional project financing Segetis Confidential Information 9
  10. 10. Impact on Minnesota Economy Benefit First Plant Next Generation Expansion Sales $50MM $325MM Capital Investment $62MM $180MM Corn Consumption 88MM lbs/yr N/A Wood Consumption N/A 900MM lbs/yr 282MM lbs/yr 1.6MM lbs/yr 80 180 300 Person yrs 450 Person yrs 400 900 Green House Gas Reduction Direct Jobs Construction Jobs Indirect Jobs Segetis Confidential Information 10
  11. 11. >$50bn Addressable Market Opportunity Plasticizers Plasticizers $14bn $14bn PVC & PVC & biopolymers biopolymers Segetis Biobased Specialty Chemicals Agrochemical Agrochemical formulations formulations $3.5bn $3.5bn Polyester & Polyester & Polyurethane Polyurethane Intermediates Intermediates $7bn $7bn Polycarbonate Polycarbonate Co-Monomer Co-Monomer $2bn $2bn Household Household & Industrial & Industrial Cleaners Cleaners $2.5bn $2.5bn Bio-based acrylate Bio-based acrylate polymers polymers $5bn $5bn Levulinic Acid (LA) Levulinic Acid (LA) Biobased Intermediate Chemicals Nylon Intermediates Nylon Intermediates $8bn $8bn Other LA Derivatives Other LA Derivatives $5bn $5bn 11
  12. 12. Segetis Financial Success First Plant Next Generation Expansion (2015) (2019) Sales $50MM $325MM Capital Investment $62MM $180MM 30% 40% $5MM (10%) $60MM (18.5%) 2 yrs from Start-up 1 yr from Start-up Project Financing not Available for 1st of its kind Conventional Project Financing Metrics Gross Margin EBIDTA Cash-Flow + Funding Driver Segetis Confidential Information 12