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November 2006

Indiana Logistics Summit. November 2006. Ethanol Fundamentals. Ethanol as a % of Gasoline Sold (a). Grain alcohol produced from fermentation of starch or sugar 95% of US ethanol made from corn (a) Ethanol is a gasoline additive and substitute Most cars can run on 10% ethanol gasoline blend

MikeCarlo
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November 2006

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  1. Indiana Logistics Summit November 2006

  2. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Ethanol Fundamentals Ethanol as a % of Gasoline Sold(a) • Grain alcohol produced from fermentation of starch or sugar • 95% of US ethanol made from corn (a) • Ethanol is a gasoline additive and substitute • Most cars can run on 10% ethanol gasoline blend • Cars can be made to burn 85% ethanol • 5 million on the road today • Priced relative to regular gasoline (quoted in $ / gallon) • Industry has doubled in last 3 years • Government mandate doubles renewable fuel demand in next six years (b) Ethanol 2.7% Gasoline 97.3% 2005 Total Gasoline Demand = 148 billion gallons Ethanol as An Additive • Source: Renewable Fuels Association • Mandated in 2005 Energy Bill

  3. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Anticipated Production Capacity Expansion Schedule Visible Production Growth with a Proven Track Record Mt. Vernon, IN220.0 Pekin 256.5 Pekin 3 110.0 Aurora220.0 1 Billion Goal 1,000.0 Capacity     Land 756.5 Existing Infrastructure     426.5 ICMFagenKiewit Delta T and Kiewit Negotiations Underway Delta T and Kiewit Negotiations Underway Delta T and Kiewit Negotiations Underway Engineering, Procurement, Construction Permit Applications  Summer 2006 Summer 2006 Summer 2006 ProductionStartup 1Q07 3Q08 1Q09 3Q08

  4. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Integrated Infrastructure Drives Long-Term Customer Relationships Key Customer Relationships • Fully-integrated ethanol pure-play • Difficult to replicate terminal infrastructure • Multiple modes of transportation (truck, rail, and barge) • Ability to spread costs across pool • Ability to deliver scale and reliability to customers • Consistency of fee based revenue

  5. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Aventine is the Face of Ethanol to Its Customers • Dependable supplier of ethanol in large volumes • Brings the national market to Midwest ethanol producers • Current production in eight states provides distribution flexibility • Fragmented industry provides acquisition opportunities Aventine14% ADM27% (a) Other Ethanol Producers59% 96 Companies • Does not include marketing volumes. Source: Renewable Fuels Association as of April 2006

  6. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Future Ethanol Markets • CA – 10% 700 MGPY • Atlanta 225 MGPY • Boston 250 MGPY • Philadelphia 200 MGPY • New Jersey 150 MGPY • DC/ Baltimore/ VA 300 MGPY • Dallas/ Houston 440 MGPY • Florida 300 MGPY • PADD II 1.35BGPY (Midwest @ 75%) Total 4.0 BGPY

  7. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Production Transportation Terminalling/Blending Sale/End-Use Ethanol Value Chain Other Truck& BargeCompanies Other SelectedMarketers $ - $ - $ - $ Netback Ethanol Price Gross Ethanol Price

  8. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Distribution • Access to rail, truck and barge transportation • Access to all major railroads in the USA • Sixteen Production Facilities • Seven Breakout Terminals Serving Major Markets • Thirty-eight Blend Terminals • Adding at least 11 distribution points in 2006 • Reduced Rail Freight Rates Due to Volume • Utilize Efficient Movements to Meet Contract Commitments

  9. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Distribution • 1435 tank cars – more tank cars on order • National contracts with the: UP, BNSF, NS, CN, CSX, CPRS • Trucks - work with over 80 carriers • Terminals - located in 51 terminals with 30 million gallons of off-site storage • Unit trains - NS & CSX (Northeast) & BNSF (Southern California)

  10. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Pekin Facility (Pekin, IL) Aurora Facility (Aurora, NE) Alliance Partners Terminals Unmatched Distribution Infrastructure Competitive Advantage • Over 1,435 rail cars under long-term lease • 1 ocean-going & 13 inland river barges on time-charter • 14 production sites and 51 terminals • Extensive blending system with 30 million gallons of capacity (renewal at our option) • Access to West, East, and Gulf Coast • 25 years of development

  11. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Where Does Demand Originate? • Public Policy Mandate – Renewable Fuels Standard (RFS) currently 7.5 billion gallons by 2012. A further increase in the mandate would • help balance supply/demand concerns • provide long-term support for ethanol prices • improve investor sentiment • Discretionary Blending by Refiners and Blenders – ethanol can be used • as an octane enhancer • to extend gasoline stocks • to reduce the cost to refiners/blenders • Global Growth in Ethanol

  12. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Increases in the RFS?

  13. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Export Opportunities Countries increasingly blending ethanol into gasoline

  14. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Plant Location – Mt. Vernon, IN

  15. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt Mt. Vernon Project • 220 Million Per Year Ethanol Plant • Approximately $400 Million Project • 50-65 Jobs (estimate includes CGB handling) • Inputs • Corn • Natural Gas & Eletricity • Water • Outputs • Ethanol • Corn By-Products – Animal Feed Ingredients • Carbon Dioxide

  16. C:\Documents and Settings\nkofosuamaah\Local Settings\Temp\cache\OLK68C\Aventine IPO Roadshow Presentation 38 (no pictures).ppt

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