August 2014 - Jefferies · • Based on Nobel Prize-winning innovations in metathesis catalysis • Uses a variety of renewable feedstocks and standard equipment to create products

August 2014

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July 2014 2014 Copyright Elevance Renewable Sciences CONFIDENTIAL2

IMPORTANT NOTICE AND DISCLAIMER

2014 Copyright Elevance Renewable Sciences CONFIDENTIAL3

Elevance Renewable Sciences, Inc. is a leading provider of high performance specialty chemicals produced through a proprietary chemical conversion of renewable oil feedstocks

Superior specialty chemicals that outperform existing chemicals in the market today

Chemical products directly address a $100bn+ global market

Strong commercial demand from partners

Ability to produce chemicals at attractive economics

Summary

Well-capitalized with substantial support from leading sponsors

July 2014

Company Overview

2014 Copyright Elevance Renewable Sciences CONFIDENTIAL4 July 2014

Elevance Renewable Sciences


Who We AreElevance Renewable Sciences is a leader in

the chemical conversion of renewable feedstock into a wide range of both ‘drop in’

and novel specialty chemicals

Key StatsEmployees: ~150Founded: 2007

Headquarters: Woodridge, ILFacilities: Gresik, Indonesia (operating)

Natchez, MS (in development)Raised $300M to date in private equity

capital

What We DoElevance produces specialty chemicals with

performance benefits for a wide range of markets using proprietary, Nobel Prize winning, olefin metathesis technology

Gresik, Indonesia Natchez, Mississippi

Woodridge, Illinois

July 2014

Management Team


K’Lynne Johnson

Chief Executive Officer

David Kelsey

Chief Financial Officer

Mel Luetkens

Chief Operating Officer

Robert “Bob” Kumpf

Chief Technology Officer

Andy Shafer

EVP, Sales & Marketing

• Over 25 years of experience across a variety of executive roles

• Previously served as SVP and CFO of Sealed Air Corporation, a Fortune 500 Company as

well as holding various executive positions within GE and GE Capital and acting as CFO

of two small-cap growth companies (one public and one private)

• Over 23 years of experience in the chemicals industry

• Previously has held P&L management, R&D leadership, new business and product

development, strategy development and execution responsibilities for Amoco, BP,

Innovene, and INEOS

• Over 25 years of experience across a variety of technical and executive roles

• Previously COO of Plextronics, CAO at Bayer MaterialScience among various other

executive roles at Bayer MaterialScience

• Over 20 years of experience in the specialty chemicals and plastics industries

• Previously an original executive at Cargill-Dow (now NatureWorks, LLC), as well as

holding various management positions for Fortune 50 businesses

• Over 20 years of experience in the oil and petrochemicals industries

• Previously served as the SVP of the Global Derivatives operating company at BP

Innovene among various other executive roles within the global commodity and

specialty chemicals businesses at BP, Innovene and Amoco

July 2014

Palm

Complex Processing

High capital costs

Energy intensive

Large number of process steps

Hazardous & toxic byproducts

Petroleum Feedstocks

Finite resources

Volatile prices

Carbon intensive

Environmental risk

7

Canola

Globally available

Feedstock options create flexibility and value

Low carbon footprint

Simplified Conversion Process

Lower capital costs

Less energy intensive

Efficient operations using standard equipment

Renewable Feedstocks

Soy

Conventional petrochemical process The Advantage

2014 Copyright Elevance Renewable Sciences CONFIDENTIAL

Multiple Advantages over Conventional Petrochemical Process

Output Output

Mono-functional

Specialty Chemicals

Olefins

Oleochemicals

Unique di-functional specialty chemicals

Mono-functional

Olefins

Oleochemicals

July 2014

Olefins

Specialty Chemicals

Oleochemicals

Soy oil

Palm oil

Canola oil

Corn oil

Jatropha oil

Algae oil

Tallow oil

Mustard oil

Metathesis Distillation

Transesterification Distillation

Hydrolysis/Hydrogenation

DerivatizationSeparations

Co-Reactants

Alcohol Glycerol

Broad Feedstock Options

Elevance Proprietary Catalyst Technology

Standard ChemicalUnit Operations

Novel, AdvantagedProducts

Technology proven at scale

Low capital intensity and low cost of production

High value product mix


Elevance’s proprietary catalyst and process technology produces unique specialty chemicals with desirable functional attributes previously unavailable in the marketplace

• Extensive IP portfolio consisting of both exclusively-licensed and internally-developed advancements• Based on Nobel Prize-winning innovations in metathesis catalysis• Uses a variety of renewable feedstocks and standard equipment to create products in a simple and efficient

process

Distillation

Hydrolysis/Hydrogenation

DerivatizationSeparations

Elevance Proprietary Catalyst Technology

Standard ChemicalUnit Operations

Novel, AdvantagedProducts

8

Elevance Biorefinery Process

July 2014

Elevance Technology


Metathesis results in the rearrangement of double-bond containing chemicals

While traditional processes use small

molecules to build more complex

molecules, the Elevance process

reduces costs by leveraging natural

plant oil complexity.

Chemicals from the Elevance process combine functional

attributes of olefins and oleochemicals in a previously

unachievable single molecule.

Elevance proprietary catalyst & process

Novel, advantaged products

July 2014

2014 Copyright Elevance Renewable Sciences CONFIDENTIAL10 July 2014

Elevance technology creates unique di-functional molecules which provide significant competitive advantages enabling value creation in one of three ways:

Elevance Technology Provides Competitive Advantages

1) Better performance than competitive alternatives at

equal or better cost

2) Viable routes to commercially desired

molecules

3) More efficient routes to manufacture existing

molecules through fewer steps and lower capital

required

Conventional petrochemical process -> 6 Steps

The Advantage -> 3 Steps


Elevance’s intellectual property portfolio covers an extensive array of innovations in catalysts, compounds, chemical reactions, systems, processes and applicationsPatents and Patent Applications including:

• Received title to U.S. and foreign patent applications from Cargill at its inception in 2007

• Elevance has filed over 200 U.S. Patent Applications since its inception and currently has 34 issued U.S. Patents and 88 pending U.S. Patent Applications

• Currently 286 applications pending globally and 95 issued patents throughout the world

Exclusive perpetual worldwide licenses from:

• Materia, Inc. to a group of over 130 U.S. Patents and Patent Applications, together with the corresponding foreign patents and applications

• Exclusive license extends perpetually provided Elevance reaches a modest catalyst purchase amount (levels met currently in campaign mode)

• XiMo Ltd. to a group of 9 U.S. Patents and Applications, together with the corresponding foreign patents and applications

Trademark protection for its name and logo and the names of several of its products

Intellectual Property Overview

July 2014

Production Facilities


Elevance currently manufactures products at its commercial scale facility in Gresik, Indonesia which was designed and constructed using its proprietary metathesis technology


Plant overview

Location: • Gresik, Indonesia

Ownership:• Elevance (50%) / Wilmar

(50%)

O&M provider: • Wilmar

Plant footprint: • 10 acres

Capacity:• Currently 180,000 MT, may be

expanded to 360,000 MT

EPC contractor: • Wilmar

Construction period: • 16 months

COD: • July 2013

Feedstock: • Palm oil, supplied by Wilmar

Outputs (by volume):

• Specialty chemicals (26%)• Oleochemicals (44%)• Olefins (18%)• Glycerin (10%)

Employees: • 29

180k MT Gresik JV plant

Current status:• Extended 10 – 12 week campaign slated to begin in

September 2014

• Throughput at or above designed capacity

• Elevance has already met or is on-target to meet all plant

design specifications

• Variable consumptions and utility costs below design

• Key specialty chemical product yield and quality

specifications have met and exceeded design

• On-track to achieve design targets for other chemicals

• Consistent safety record and good operator discipline

Gresik JV Overview

July 2014

Natchez Facility Overview


Elevance is developing a second, larger facility in Mississippi on an existing brownfield site to satisfy demand, expected to exceed Gresik capacity by 2016

Plant overview

Location: • Natchez, Mississippi

Ownership: • Elevance (100%)

O&M provider: • Elevance

Plant footprint: • 25 acres

Capacity: • 280,000 MT

EPC contractor: • URS

Construction period: • 20 months

COD: • Q2 2016

Feedstock: • Canola oil

Outputs (by volume):

• Specialty chemicals (43%)• Oleochemicals (15%)• Olefins (31%)• Glycerin (9%)

Employees:• 165 (expected headcount at

full capacity)

280k MT Natchez Facility

Current status:

• Elevance is developing a second specialty chemicals plant in

Natchez, MS with URS as the EPC contractor

• Engineering has begun and permitting process nearly

complete

• Procurement of long-lead equipment is underway

• LURGI is constructing a separation unit under a separate lump-

sum contract

• Richard Design Services is acting as Advisor to Elevance through

the design phase and as Owner’s Representative during

construction

• Anticipate financial close in 3Q 2014 and NTP in December 2014

July 2014

Genting Biorefinery Collaboration Overview


Elevance to be exclusively responsible for the sale of all specialty chemicals produced at new biorefinery in Lahad Datu, Malaysia

• Elevance has agreed a 25:75 collaboration with Genting Plantations Berhard through Genting Integrated Biorefinery Sdn Bhd

(GIB) to build a new biorefinery in Malaysia based on Elevance’s proprietary metathesis technology

• As a condition of the collaboration agreement, Elevance will not be responsible for any capital costs related to the facility

• The 240,000 MT facility will be located in Lahad Datu, Sabah, Malaysia

• Plant will be designed to run on palm oil

• Production of renewable, high-performance olefins and specialty chemicals that can be used in multiple end-product

applications, including lubricants, surfactants and detergents

• GIB has agreed to pay Elevance license and design fees, and Elevance will provide IP rights, knowledge transfer and technical

and consulting services

• The entity is in negotiations with a highly regarded engineering firm to complete an initial FEED package

July 2014

Genting Biorefinery Location

Genting facility in Lahad Datu, Malaysia

Gresik facility in Gresik, Indonesia

Products and Markets


Products: Market Size and End Use

17

Consumer & Industrial

Ingredients

• Specialty surfactants

• Soy & palm wax for candles, corrugated coatings

• Acid wax• High performance

soy wax• Emulsifiers• Soy petrolatum

• Decene (C10)• Alpha and internal

olefins (C11-C22)

• Fatty acids and esters

• Fatty alcohol feedstocks

$1,100 - $13,250

*LAO and LIO only

$40 billion

Engineering Polymers &

Coatings

• Specialty polyamides and polyurethanes

• Polyester polyols, epoxies

• Crosslinkers, rheology modifiers, coalescents

$1,550 - $13,250

$5 billion

Lubricants, Additives

• Lubricant base oils

• Lubricant and fuels additives

• Advanced biofuels

$5,500 - $13,250

$10 billionAddressable market

Selling price ($/MT)

End market uses


Specialty Chemicals

Elevance specialty products’ novel performance attributes enable sales at premium prices into multiple end markets that represent a $100 billion opportunity

Platforms OlefinsOleochemicals

$1,500 - $2,500$850 - $2,500

$7 billion*$38 billion

Intermediate Chemicals

July 2014

Specialty products meet customer-desired functional attributes

Consumer & Industrial Ingredients

Engineering Polymers & Coatings

Lubricants & Additives

•Improved cold water performance•Better degreasing and low VOC in cleanersDetergents & Cleaners

•Improved hair conditioning and shine•Moisturizing benefits & smoother feel for skin care Personal Care Products

•Improved efficacy and enables higher concentrations•Easier herbicide application•Lower VOC, less run-off, elimination of high toxicity tallow amines

Agriculture Additives

•High thermal stability and increased compatibility•Sharper phase changes at higher melt pointsPerformance Waxes

•Reduction in formulation costs•Improved fuel economyLubricant Base Oils

•Improved lubricity•Formulation solubility enhancementsLubricant Additives

18 2014 Copyright Elevance Renewable Sciences CONFIDENTIAL

Specialty Products

•Feedstocks and monomers that enable existing & new polymers•Improved “use life” of engineering polymers in aggressive environments

such as high solvent and/or salt exposureEngineering Polymers

•Increased toughness and chip-resistance in specialty powder coatings•Improved hydrolytic stability and barrier properties in packaging through

new adhesives, coatings and films

Coatings, Adhesives, Sealants and Elastomers

July 2014

Performance Non-ionic surfactant that performs like a

solvent Effective at 5% concentration Usable across broad pH Kauri-Butanol (KB) value greater than 500

Environmental Potential to replace NMP and methylene

chloride Low Vapor pressure (LVP-VOC)

“Stepan Launches STEPOSOL® MET-10U, a Powerful, Sustainable Surfactant to deliver superior cleaning performance” -March 24, 2014

Paint removal

Diluted to 5% as effective as pure solvents

100% Acetone/NMP 5% Stepasol

Adhesive removal

Stepasol

Near complete adhesive removal

NMPMethylene Chloride

D-Limonene

19 2014 Copyright Elevance Renewable Sciences CONFIDENTIAL

Case Study: Novel Surfactant STEPOSOL™MET-10U

July 2014

Inherent™ C18 Diacid: Polyamides and Polyester Polyols

• Elevance Inherent™ Diacids provide potential superior performance in hydrolytic stability, chemical, solvent and salt resistance, optical clarity and toughness

0

20

40

60

80

4,18 6,18 10,18 4,10 6,10 10,10

deg

. C

Melting Point of Polyester Polyols

0

10

20

30

40

50

60

70

Impact Resistance

• C18 Diacid monomers enable the creation of new base polymer families with core similarities to utilize many standard processing and formulation conditions

C12 C12 C18 C18

C18 Diacid Competition

20 2014 Copyright Elevance Renewable Sciences CONFIDENTIALJuly 2014

Partner Relationships



PartnerJV / JDA /

Commercialization OfftakeFeedstock /

Catalyst Date Description

08/2010 • 8 specialty chemicals projects currently actively pursued

01/2012• Specialty chemicals projects under development• MOU for offtake agreement for 10,000 MT by 2020

06/2013• Offtake agreement for 70,000MT of mixed olefins from

Gresik JV

06/2010• JV partner for Gresik JV• Provides palm oil for the Gresik JV Facility

11/2007 • Feedstock provider to Elevance

01/2011• Joint-development and commercialization of new catalyst

technology

11/2007

• Provider of ruthenium-based catalysts• Licensor to Elevance of numerous patents involving olefin

metathesis catalyst compositions and the use of such in cross-metathesis

02/2014

• Joint-development and commercialization of new catalysts• Assessing the feasibility of construction of the first world-

scale ethylene metathesis-based production site using renewable oils

07/2014 • Developing a 240,000 MT biorefinery in Malaysia

Leading Partners

July 2014

http://www.cathaybiotech.com/en

http://www.cathaybiotech.com/en

http://www.ximo-inc.com/

http://www.ximo-inc.com/

Investment Highlights


Conclusion


Superior specialty chemicals that outperform existing chemicals in the market today

Chemical products directly address a $100bn+ global market

Strong commercial demand from partners

Ability to produce chemicals at attractive economics

Well-capitalized with substantial support from leading sponsors

July 2014


Documents

August 2014 - Jefferies · • Based on Nobel Prize-winning innovations in metathesis catalysis • Uses a variety of renewable feedstocks and standard equipment to create products