Transcript Slide 1

HOMELAND ENERGY
SOLUTIONS
2012 Year in Review
Walter Wendland, CEO
HISTORIC U.S. FUEL ETHANOL PRODUCTION
2007 Energy Bill Renewable Fuel Volumes
40
Unspecified Advanced
35
Billions
of
Gallons
36
33
Cellulosic Ethanol
30
30
Biomass Diesel
25
Conventional Biofuel
28
24
26
22.25
20.5
20
18.15
13.95 15.2
15
10
9
11.1
16.55
12.95
5
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.1
Unspecified Advanced
Cellulosic Ethanol
Biomass Diesel
Conventional Biofuel
0.2
0.3
0.5
1.75
2
2.5
3
3.5
4
4.5
4.5
4.5
5
0.1 0.25
0.5
1
1.75
3
4.25
5.5
7
8.5 10.5 13.5
16
biomass diesel in 2013 and after will be at least as much as 2012
0.52009
0.65 biodiesel
0.8
1 volume
Expect
to be shifted to 2010
9
10.5
12
12.6 13.2 13.8 14.4
15
15
15
15
15
15
15
15
Conventional biofuel includes ethanol from corn and sugar cane. Advanced biofuels can also be used to meet this portion of the mandate
ANNUAL U.S. ETHANOL EXPORTS AND IMPORTS
1200
1000
800
MILLION GALLONS
600
400
200
EXPORTS
IMPORTS
0
200
400
600
800
Source: FAS
*2012 estimated by RFA using Jan.-Oct. data
NET EXPORTS
3/20/13
ETHANOL GROSS MARGIN*
MN FOB off PNW Margin** .402
¢/gal
$.38/gal
1.400
* 7/01/09 started computing margin
using Midpoint Chicago Ethanol.
1.300
1.200
1.100
1.000
0.900
0.800
0.700
0.600
0.500
0.400
3/25/13
1/4/13
10/16/12
7/28/12
5/9/12
2/19/12
12/1/11
9/12/11
6/24/11
4/5/11
1/15/11
10/27/10
8/8/10
5/20/10
3/1/10
12/11/09
9/22/09
*
7/4/09
1/25/09
11/6/08
8/18/08
5/30/08
3/11/08
12/22/07
0.100
10/3/07
0.200
4/15/09
Estimated expenses including principal &
interest, but before depreciation=$.38/gal
0.300
*Gross Margin: Inputs: nearby corn futures/basis and nearby natural gas futures + 20 Outputs: DDGS (95% of cash corn)
and ethanol nearby futures with the western corn belt @ -12 Chicago and eastern corn belt @ Chicago price. Margin
reflects plants not extracting oil.
**FOB MN off PNW or MN Ethanol Plant if markedly different.
GROSS
MARGIN*
MNETHANOL
FOB off PNW
Margin**
.402
¢/gal
1.400
3/25/13
1/4/13
10/16/12
7/28/12
5/9/12
2/19/12
12/1/11
9/12/11
6/24/11
4/5/11
1/15/11
10/27/10
8/8/10
5/20/10
3/1/10
12/11/09
9/22/09
*
7/4/09
Estimated expenses including principal &
interest, but before depreciation=$.38/gal
4/15/09
1/25/09
11/6/08
8/18/08
5/30/08
3/11/08
12/22/07
* 7/01/09 started computing margin
using Midpoint Chicago Ethanol.
10/3/07
1.300
1.200
1.100
1.000
0.900
0.800
0.700
0.600
0.500
0.400
0.300
0.200
0.100
3/20/13
$.38/gal
*Gross Margin: Inputs: nearby corn futures/basis and nearby natural gas futures + 20 Outputs: DDGS (95% of cash corn)
HOMELAND ENERGY
SOLUTIONS
2012 Financial
Overview
Dave Finke, CFO
HOMELAND ENERGY
SOLUTIONS
12/31/12
Current Assets
$
17,402,396
12/31/11
$
23,319,876
12/31/10
$
30,920,597
12/31/09
$
19,811,778
P, P & E (Net)
121,150,465
131,218,450
138,906,631
149,107,152
Other Assets
3,294,307
2,971,781
2,847,833
13,600,758
Total Assets
141,847,168
157,510,107
172,675,061
182,519,688
Current Liabilities
11,204,758
16,571,192
27,089,841
12,652,511
1,268,793
246,488
33,101,406
62,263,911
129,373,617
140,692,427
112,483,814
107,603,266
$1,430
$1,556
$1,230
$1,177
Long-Term Debt
Members’ Equity
Book Value Per Unit
HOMELAND ENERGY
SOLUTIONS
Income Statement Summary
2012
Revenue
2011
2010
2009
$359,242,777
$419,312,560
$254,480,111
$161,855,910
3,178,041
40,146,487
15,168,885
19,636,912
Operating Income
419,143
37,382,118
12,970,571
17,008,450
Net Income
494,765
36,353,768
11,030,809
15,640,375
$5.47
$401.94
$120.63
$171.04
Distributions/unit
$133.00
$79.00
$68.00
Taxable Income/unit
$-
Gross Profit
Net Income/unit
$139.27
$-
$$-
HOMELAND ENERGY
SOLUTIONS
Financial Ratios & Figures
2012
2011
2010
2009
Return on Assets
0.35%
23%
6%
9%
Return on Equity
0.38%
26%
10%
16%
Return on Investment
0.55%
41%
12%
17%
128.8 M
137.6 M
126.7 M
82.3 M
Income per Gallon
$0.004
$0.264
$0.087
$0.189
Bushels Ground
44.1 M
48.3 M
45.2 M
30 M
Income per Bushel
$0.011
$0.753
$0.244
$0.521
335,946 tons
392,245 tons
370,010 tons
235,000 tons
30.3 M
5.8 M
Gallons Sold
DDGs Sold
Corn Oil Sold (in lbs)
HOMELAND ENERGY
SOLUTIONS
Economic Impact
Since April 2009
Ethanol Revenues
$975 Million
DDG Revenues
$205 Million
Corn Oil Revenues
$14 Million
Payments for Corn
$897.7 Million
Wages & Benefits
Misc Vendor Payments
Distributions to Members
$11.4 Million
$110.4 Million
$25,324,600.00
HOMELAND ENERGY
SOLUTIONS
Production Update
2012 Calendar Year
Kevin Howes, Plant Manager
HOMELAND ENERGY
SOLUTIONS
TODAY is the 4 year anniversary since we ground our first
bushel of corn! In that time……
•
•
•
•
Produced over 510,000,000 gallons of Denatured Ethanol
Produced over 1,354,000 tons of DDGS
Produced over 44,000,000 lbs of Distillers Corn Oil
Ground over 178,000,000 bushels of corn
HOMELAND ENERGY
SOLUTIONS
Freedom to Operate (EH&S)
• 0 Recordable Injuries, 0 Lost Time Accidents 2012
• Surpassed 1000 days without a recordable injury
• 2012 Industry Average Incident rate = 1.7 based on HES hours worked
• NEVER experienced a Lost Time accident at HES
• 0 NOVs received in 2012
• 0 Reportable Spills in 2012
• Recognition
• Ranked 5th within the ERI 65+ member plant group in 2012
•Received ERI’s Award of Merit: top 25% of member plant past 2 years
•Canadian Pacific Railroad Chemical Shipper Safety Award 3nd year in a row
•IISC Gold Safety Award 2nd year in a row – TIR 25% of Industry Average
HOMELAND ENERGY
SOLUTIONS
Thank You for your investment
and the opportunity to lead one
of the best teams in the
industry!!!
HOMELAND ENERGY
SOLUTIONS
2012 Marketing Report
Stan Wubbena, Commodity Manager
THANK YOU
• TO EVERYONE INVOLVED IN SELLING,
HAULING, GROWING THE CORN FOR OUR
PLANT
• EVERYTHING WE DO AT HOMELAND STARTS
WITH THE CORN
• OVER 180 MYN BUSHELS DUMPED SINCE WE
BEGAN MARCH 24, 2009
• In 2012 44,204,506 bushels were received
Unit Train Destinations
•
•
•
•
•
Sewaren, NJ
Charlotte, NC
Albany, NY
Linden, NJ
Lawrenceville, GA
•
•
•
•
•
Providence, RI
Chesapeake, VA
Bridgeport, NJ
Denton, NC
Doraville, GA
U.S. ETHANOL CO-PRODUCTS OUTPUT
40,000
Distillers Grains
Corn Gluten Feed
Corn Gluten Meal
30,000
25,000
20,000
15,000
10,000
5,000
Source: RFA based on USDA
12-13P
11-12E
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
02-03
01-02
00-01
99-00
98-99
97-98
96-97
95-96
94-95
93-94
92-93
91-92
0
90-91
THOUSAND METRIC TONS
35,000