Segetis Presentation Austin December 2013
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Transcript of Segetis Presentation Austin December 2013
Turning Levulinic Acid’s Potential as a Biobased Building Block into Reality
RENEW. REINVENT. SUSTAIN. CHANGE THE WORLD.™
December 17, 2013
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RenewWe believe that biobased materials are a viable alternative to petrochemicals and contribute to improving quality of life
ReinventOur disruptive technology will turn Levulinic Acid’s potential as a Biobased Building Block into reality
SustainSupporting sustainable lifestyles by transforming Levulinic Acid into high performance materials reducing toxicity, air and environmental impact
Renew.Reinvent.Sustain.Change the WorldTMRenew.Reinvent.Sustain.Change the WorldTM
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
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Minnesota State and Segetis Make a Great TeamMinnesota State and Segetis Make a Great Team
Savvy Investors
Segetis has been backed by Venture Capital, Strategic and Private Equity Investors since its founding in 2006
Diverse mix of global investorsDiverse mix of global investors
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“Target, Wal-Mart, Whole Foods lead retail race to safer chemicals”*
Segetis Formulation Aids: In Target stores today
Seventh GenerationCleaners
Method Detergent
Method Dishwash
5*Mark Rossi, November 18, 2013
Segetis Plasticizer – Already in Market
Biobased flex PVC product offering
Biobased PVC Compound
Wall and Door Products
Preferred Procurement
Facility Manager
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Establishing Levulinic Acid as a Biobased Building Block
Cellulosic Biomass
Levulinic Acid (LA)
Sugar
Diverse, renewable feedstocks
Thermochemical conversion
>$50bn markets
Segetis Bio-based PVC Plasticizer and Formulation
Aids
Bio-based Plastics
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Added Value for Minnesota’s Renewable Resources
Levulinic Acid Feedstock OptionsLevulinic Acid Feedstock Options
Lower Cost – opens more markets
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Cellulosic Sugar(from wood)
Corn SugarBeet Sugar
LA Conversion Validated
In development
Biomass Capacity
Pilot
Supply Chain
Segetis Confidential Information
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
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
Green House Gas Reduction 282MM lbs/yr 1.6MM lbs/yr
Direct Jobs
Construction Jobs
80
300 Person yrs
180
450 Person yrs
Indirect Jobs 400 900
Segetis Confidential Information 10
Polyester & Polyurethane Intermediates
$7bn
Polyester & Polyurethane Intermediates
$7bn
Polycarbonate Co-Monomer
$2bn
Polycarbonate Co-Monomer
$2bn
Nylon Intermediates$8bn
Nylon Intermediates$8bn
Other LA Derivatives$5bn
Other LA Derivatives$5bn
Plasticizers $14bnPVC &
biopolymers
Plasticizers $14bnPVC &
biopolymers
Agrochemical formulations
$3.5bn
Agrochemical formulations
$3.5bn
Household & Industrial
Cleaners$2.5bn
Household & Industrial
Cleaners$2.5bn
Bio-based acrylate polymers
$5bn
Bio-based acrylate polymers
$5bn
Levulinic Acid (LA)Levulinic Acid (LA)
Segetis Biobased Specialty Chemicals
Biobased Intermediate
Chemicals
>$50bn Addressable Market Opportunity
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Segetis Financial Success
MetricsFirst Plant
(2015)
Next Generation Expansion
(2019)
Sales $50MM $325MM
Capital Investment $62MM $180MM
Gross Margin 30% 40%
EBIDTA $5MM (10%) $60MM (18.5%)
Cash-Flow + 2 yrs from Start-up 1 yr from Start-up
Funding DriverProject Financing not
Available for 1st of its kindConventional Project
Financing
Segetis Confidential Information 12