Business Update August 4, 2017 - Jefferies Group · to update any forward-looking statements based on new developments or changes in our expectations. Non-GAAP Financial Measures

Copyright 2017 Renewable Energy Group, Inc.

Business UpdateAugust 4, 2017

Copyright 2017

Renewable Energy Group, Inc.

Safe Harbor Statement

2

Forward Looking Statements

This Presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform

Act of 1995, including statements related to expected future financial results, possible legislative and regulatory

changes affecting the biomass-based diesel industry, expansion plans, capital upgrades and the potential financial

impacts thereof, growth in REG’s markets and growth in REG’s operations, product offerings and scope of business

arising from implementation of REG’s business strategies.

These forward-looking statements are based on current expectations and assumptions, are subject to change, and

actual results may differ materially. Factors that could cause actual results to differ materially include changes in

governmental programs and policies requiring or encouraging the use of biofuels; changes in the spread between

biomass-based diesel prices and feedstock costs; the future price and volatility of feedstocks; the future price and

volatility of petroleum and products derived from petroleum; availability of federal and state governmental tax credits

and incentives for biomass-based diesel production; risks associated with fire or explosion at our facilities; the effect of

excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market;

competition in the markets in which we operate; technological advances or new methods of biomass-based diesel

production or the development of energy alternatives to biomass-based diesel; and other risks and uncertainties

described from time to time in REG's annual report on Form 10-K for the year ended December 31, 2016, its quarterly

report on Form 10-Q for the quarter ended June 30, 2017 and other periodic filings with the Securities and Exchange

Commission. All forward-looking statements are made as of the date of this Presentation and REG does not undertake

to update any forward-looking statements based on new developments or changes in our expectations.

Non-GAAP Financial Measures

This Presentation also presents Adjusted EBITDA, as a supplemental performance measure. Adjusted EBITDA is not in

accordance with generally accepted accounting principles (GAAP) and accordingly a reconciliation of Adjusted EBITDA

to net income/(loss) determined in accordance with GAAP is included in the Appendix at the end of this Presentation.

REG converts waste fats and oilsinto high quality renewable fuels andchemicals to meet growing globaldemand for cleaner products

3

Copyright 2017


#1 in North America and Growing Internationally

$2.0Billion in

revenue

567Million gallons

of fuel sold1

REG Performance in 2016

4Note: 1. Includes all gallons sold: domestic and international produced gallons and third party gallons

Source: REG Analysis

Copyright 2017


Moving to

5

Expecting $100+ million

of adjusted EBITDA2 from

base business without RHD

Realizing full year of RHD returns

estimated at $50+ million of

adjusted EBITDA2

Market Dynamics / Biodiesel / RHD / International Operations

Capturing Downstream Margin / Specialty Products

Adding

geographies, products

and markets

$150+ MM of adjusted EBITDA1,2

Maximizing Optimizing Expanding

Notes:

1. $150+ MM of adjusted EBITDA assumes retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit (BTC), as well as stable prices for energy, raw material, and biofuel related RINs and credits. There is no assurance that BTC will be retroactively reinstated.

2. Adjusted EBITDA is a non-GAAP measure. See Appendix for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP


Copyright 2017


Existing Petroleum

Supply Chain

50 - 90% fewer fossil CO2

emissions than petroleum fuel

Refining

Lipids

(Oils & Fats)

Fuel Blending

Feedstock Sourcing Refining Capabilities Marketing & Logistics

Business Model

6

Copyright 2017


Large Scale International Presence

7Note: 1. Demonstrated capacity for 2016 - based on maximum daily production achieved over a continuous 7-day period, annualized to 330 days


13Biomass-Based

Diesel Plants 523

MMGY

Demonstrated

Capacity1

Copyright 2017


Diversified Customer Base

8Note: 1. Includes sales to fleets, home heating, agriculture, and others


REG 2016 Finished Product Sales by Segment

Travel Center/Convenience Store

Petroleum MajorDistributor/

JobberOther1 Chemicals

38% 35% 17% 9% 1%

Copyright 2017


Optimized Sales Through National Reach

9Note: Delivered biodiesel and co-products to 47 states, 4 provinces in Canada; supplied biodiesel destined for the U.K., China and Peru in 2016


Legend

Other states with REG sales

Highly Incentivized states

with REG sales

In 2016, 70% of sales were to highly incentivized states

Copyright 2017


10

Multi-Feedstock Advantage Over Integrated Producers

Notes:

1. Representative of input, refining, and compliance values on an average sale to California

2. $/gal on yield adjusted basis in 1H 2017 using Jacobsen and CME pricing

3. Available Margin excluding transportation and logistics costs


ILLUSTRATIVE

Avg. Feedstock Cost

Advantage ($/gal)2

$0.27

Refining Avg. Available Margin

Advantage ($/gal)3

= $0.36 - $0.59

Lower cost

feedstock provides

advantage

Ability to efficiently

convert lower cost

feedstock

Lower CI scores

result in increased

value in LCFS

markets

+

Maximizing profits in California1

Copyright 2017


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Ga

llon

s in

Mill

ion

s

11Source: LMC International, EIA, National Biodiesel Board

Historic and Forecasted Global BBD Production

Historic BBD Production LMC Forecasted BBD Production

Biodiesel Mixture

Excise Tax Credit (BTC)

$1/gal. of biodiesel blended

fuel, first enacted as part of

the American Jobs

Creation Act of 2004 RFS2 Enacted

Policy mandating the

use of BBD for

obligated parties

BTC

Reinstated

BTC

Reinstated

California LCFS

PassedImplementation

starting in 2010

Iowa Tax Credit

Income tax credit for

blended fuel retailers

BTC

Reinstated

BTC

Reinstated

BTC

Reinstated

EU Passes Renewable

Energy Directive (RED)

20% of energy consumed

in the EU is renewable by

2020

RFS1 Implemented

Policy mandating the use of

biomass based diesel (BBD)

for obligated parties

New York

Bioheat Mandate

New York City passes

2% Bioheat mandate

Minnesota B20

Blend MandateImplementation of B20

blend between April 1 and

September 30 each year

Minnesota

Implements B2

Blend Mandate

Implementation of B2

blend requirement

Minnesota B10

Blend MandateImplementation of B20

blend between April 1

and September 30 each

year

Implementation

of RED II Renewables target

increases from 20%

to 30-35%

World Demands Cleaner Fuel Solutions

RFS2

Implementation

IA Tax Credit

ExtensionExtended production and

retail tax credits

CA Extends LCFS10 year extension

through 2030

IL Extends B11 Fuel

Tax Exemption

IA Fuel Tax

Differential B11 tax reduced by

$0.03

Copyright 2017


Industry Biodiesel Pricing & COGS Per Gallon

12

Averages for June 20173

Notes:

1. Illustrative Midwest multiple feedstock plant running on lower cost feedstock

2. Represents the difference between the Reported Value Without State and Local Incentives less illustrative costs

3. BTC lapsed on 12/31/2016 and the charts above assume retroactive re-instatement of BTC for 2017

$1.43

$1.60

$1.00

$3.02

$2.20

$0.70

$1.13

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Reported Value Jacobsen B100 UpperMidwest

Costs

ULSD - NYMEX RIN Value - OPIS BTC B100 - Jacobsen

Feedstock Operating Costs Margin Potential

1

2

Copyright 2017


REVENUE$535 million

in revenue

GALLONS SOLD160 million

gallons sold

ADJUSTED

EBITDA 1$19.7 million in

adjusted EBITDA1

13

• Approximately $58 million estimated net benefit from retroactive reinstatement of the BTC for Q2 2017

• Approximately $78 million estimated Adjusted EBITDA1 including a retroactive reinstatement of the BTC for Q2 2017

Note: 1. Adjusted EBITDA is a non-GAAP measure. See Appendix for a definition of Adjusted EBITDA and a detailed reconciliation to Net

Income in accordance with GAAP


Approximately $118 million estimated Adjusted EBITDA1 if BTC in effect

for the first half of 2017

REG Performance in Q2 2017

Earnings Performance

Copyright 2017


Decade of Strong Performance

Notes:

1. REG results in millions for 2016 and 2007

2. See Appendix for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP


GALLONS SOLD1

REVENUE1

30.9% CAGR

$235

$2,041

2007 2016

27.2% CAGR

ADJUSTED

EBITDA1,2$1

$102

2007 2016

67.2% CAGR

50

567

2007 2016

15

Copyright 2017


0%

5%

10%

15%

20%

25%

30%

35%

2012 2013 2014 2015 2016 1H 2017

Return on Invested Capital (ROIC)1

Stabilizing Markets and Improving Asset Performance

16

Notes:

1. 2012 through 2016 annual ROIC (after-tax EBIT/invested capital)

2. 2017 1H trailing 12 month ROIC with estimated net BTC amount (trailing 12 month after-tax EBIT/trailing 12 month invested capital)

2

Annual ROIC

Additional

estimated

ROIC if BTC

retroactively

reinstated

Copyright 2017


Trailing 12 month Adjusted EBITDA1

17Source: REG & OPIS

(1) Adjusted EBITDA is a non-GAAP measure. See Appendix for the definition of Adjusted

EBITIDA and reconciliation to Net Income determined in accordance with GAAP

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015 2016 2017

$ in

th

ou

san

ds

Rolling 12 month Adjusted EBITDA

Near and Long Term Opportunities

Copyright 2017


0

100

200

300

400

500

600

700

800

1986

1987

1988

1989

1990

1991

199

219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

09

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

202

620

2720

2820

2920

30

Gal

lon

s in

bill

ion

s

Historic Demand Expected Demand

Note: 1. As measured against 2016 projections moving forward

Source: LMC International, EIA

Growing Global Distillate Market

Supports REG’s Long-term Opportunities

For the World, 3% per year annual growth equals new sales opportunities for diesel of >12 billion gallons1

19

Copyright 2017


Growing Global BBD Industry

20

Actual Biodiesel Production LMC Forecasted Biodiesel ProductionActual RHD Production LMC Forecasted RHD Production

0

2

4

6

8

10

12

14

16

Ga

llon

s in

Bill

ion

s

Historic and Forecasted Global BBD Production

Source: LMC International, EIA

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Copyright 2017


0

100,000

200,000

300,000

400,000

500,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Ga

llon

s in

th

ou

sa

nd

s

Argentina and Indonesia: Import History to Europe (Plus Trade Action)

Argentina Indonesia

Antidumping

duties

imposed

Near Term Positive Market Dynamics

0

200,000

400,000

600,000

800,000

1,000,000

2011 2012 2013 2014 2015 2016

Ga

llon

s in

th

ou

sa

nd

s

Biodiesel Gallons Imported to USA

Imported gallons

Increasing imports caused unbalanced

market and compressed marginsTrade sanctions can be powerful

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$ p

er

ba

rre

l

WTI Crude Oil Price Over Time

WTI Price

0

100

200

300

400

500

600

700

800

Ga

llon

s in

bill

ion

s

Historic and Expected Global Diesel Demand

Historic Demand Expected Demand

Oil complex collapse mid 2014 to early 2016 Diesel demand is growing

21Source: LMC International, EIA, European Commission: Trade, Market Access Data

and REG Analysis

Copyright 2017


Copyright 2017


Potential Adjusted EBITDA1 Lift from

Positive Market Dynamics

22

Notes:

1. See Appendix (Slide 121) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP

2. Incremental Margin/Gallon ranges do not reflect REG guidance


FY 2018E Additional Adjusted EBITDA1 Impact ($ in thousands)

Illustrative

Incremental Margin/Gallon2

31,662 $0.02 $0.04 $0.06 $0.10 $0.15 $0.20 $0.30 $0.50

400,000 $8,000 $16,000 $24,000 $40,000 $60,000 $80,000 $120,000 $200,000

425,000 $8,500 $17,000 $25,500 $42,500 $63,750 $85,000 $127,500 $212,500

BBD 450,000 $9,000 $18,000 $27,000 $45,000 $67,500 $90,000 $135,000 $225,000

Gallons 475,000 $9,500 $19,000 $28,500 $47,500 $71,250 $95,000 $142,500 $237,500

Sold 500,000 $10,000 $20,000 $30,000 $50,000 $75,000 $100,000 $150,000 $250,000

(in thousands) 525,000 $10,500 $21,000 $31,500 $52,500 $78,750 $105,000 $157,500 $262,500

550,000 $11,000 $22,000 $33,000 $55,000 $82,500 $110,000 $165,000 $275,000

575,000 $11,500 $23,000 $34,500 $57,500 $86,250 $115,000 $172,500 $287,500

600,000 $12,000 $24,000 $36,000 $60,000 $90,000 $120,000 $180,000 $300,000

Positive Market Dynamics

• Successful trade case outcome

• Tax credit reform to domestic production incentive

Copyright 2017


Copyright 2017


Downstream Margin Opportunity

Illustrative

Notes:

1. Available downstream margin calculated as delta between total available value (ULSD + BTC + RINs) and the daily average OPIS Chicago SME Spot Price

2. Expected additional margin resulting from a retroactive reinstatement of the BTC

3. Trailing Twelve Month (TTM) Incremental margin of average blended fuel sale on a B100 basis ending April 30, 2017

Source: REG Analysis, OPIS23

Price Discount of B100 to ULSD1 Price Discount of B100 to ULSD with BTC2

Sales of blended fuel provided a TTM average incremental margin of $0.21/gal3

$(0.30)

$(0.10)

$0.10

$0.30

$0.50

$0.70

$0.90

Price Discount of B100 to ULSD

US

D/g

al

Copyright 2017


Copyright 2017


Terminal Expansion Strategy

24

Future Terminal Growth Opportunities

Attractive existing state incentives

or usage standards

Terminal – Blended Fuel

Terminal – Petroleum

Terminal – Biodiesel

Operational Facility

Future terminal growth based on REG assessment

of locations providing optimal profit and throughput


Copyright 2017


Copyright 2017


RHD Expansion Opportunities

25Source: REG Analysis

Geismar:Upgrade: HDO upgrade increasing

capacity by up to 37 MMGY

Expansion: Specialty Products Unit

(SPU) adds 10 MMGY of RHD capacity

Additional Expansion

• Expand capacity to 234 MMGY

• Favorable logistics to buy from and

sell to overseas markets

West Coast (e.g., Grays Harbor):• 112 MMGY facility

• Potentially co-located on leased

property adjacent 10.9 acres at

REG Grays Harbor

• Favorable logistics to buy from

and sell to overseas markets

Midwest (e.g., Seneca):• 112 MMGY facility

• Potentially co-located on 20+

REG owned acres of property

adjacent to Seneca plant

Additional locations under

consideration

Copyright 2017


Copyright 2017


26

Notes:

1. Project includes Naphtha Fractionation, Rail Expansion, Catalyst Upgrade and Pipeline

2. Project includes installation of Specialty Products Unit

3. Calculated as a Projected Adjusted EBITDA range for each project represents estimates for steady-state, post completion production rates

4. See Appendix for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP

5. ROIC measured by pretax operating income divided by total project capital


Illustrative & Estimated

Capital Projects Under Consideration

Biodiesel Plant

Improvements

Geismar

Upgrade1

Geismar

Expansion2

Representative

RHD FacilityNote

CAPEX (MM) $15-$20 $95-$120 $20-$30 $290-$355Preliminary

Estimates

Incremental Plant

Volume (MMGY)25-30 37 10 100-125

Adjusted EBITDA

Opportunity3,4 (MM)$10-$15 $40-$50 $5-$10 $75-$95

ROIC5 95%-115% 35%-45% 25%-35% 20%-25%

Return from Growth Strategies

Additional Financial Information

Copyright 2017


Historical Quarterly Financial Performance

28

$15

$24

$35 $34

$(14)

$26

$17 $22

$2 $8

$32

$60

$1

$20

1Q 2Q 3Q 4Q2014 2015 2016 2017

Note: 1. 2015 EBITDA is adjusted for retroactive BTC. . See Appendix (Slide 96) for a definition of Adjusted EBITDA and a detailed

reconciliation to Net Income in accordance with GAAP


54

87

107

74 60

96

120

99 97

150 164

156

122

160

- -

1Q 2Q 3Q 4Q

Gallons Sold – Quarterly Historical (mm gal) Adjusted EBITDA – Quarterly Historical ($mm)1

Net Book Value Per Share – Quarterly end Historical

$16.6 $16.6 $16.1$14.0 $14.1 $14.8 $15.3 $15.8 $15.4 $14.5

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017

Revenue – Quarterly Historical ($mm)

$219

$333 $384

$338

$231

$374 $395 $388

$298

$558

$625

$560

$419

$535

1Q 2Q 3Q 4Q

2014 2015 2016 2017

Copyright 2017


Historical Annual Financial Performance

29

188

259 283345

513

188

259 287

375

567

4 30 54

2012 2013 2014 2015 2016

Biofuels Volume Petroleum Volume

$1,015

$1,498 $1,274 $1,387

$2,041

2012 2013 2014 2015 2016

Gallons Sold – Annual Historical (MM gal) Adjusted EBITDA – Annual Historical ($MM)1

Revenue – Annual Historical ($MM) Net Book Value – Year end Historical ($MM)

$97

$148

$108

$50

$102

2012 2013 2014 2015 2016

$325

$594

$779

$614 $610

2012 2013 2014 2015 2016

Notes:

1. See Appendix (Slide 96) for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP

2. Decline in net book value primarily due to non-cash write-off of goodwill


2

Copyright 2017


Strong Financial Position

30

$ in millions 6/30/2017 12/31/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012

Cash &

Marketable

Securities

$87.6 $116.2 $47.1 $80.3 $153.2 $66.8

Net Working

Capital$180.3 $229.3 $181.6 $243.1 $249.3 $109.2

Total Assets $1,060.5 $1,136.6 $1,223.6 $1,367.7 $740.9 $495.8

Term Debt1 $215.3 $217.9 $256.6 $252.9 $34.2 $37.0

Net Book Value $561.9 $610.2 $614.02 $778.7 $594.1 $324.8

Common Shares (millions) As of 6/30/173

Common Outstanding4 38.7

RSU’s 0.9

PRSU’s 0.2

39.7

Notes:

1. Term debt before netting of the debt issuance costs of $6.3 million, $4.1 million and $5.2 million at December 31, 2016, 2015 and 2014 respectively.

2. Decline in net book value primarily due to nonrecurring, non-cash write-off of goodwill

3. Stock appreciation rights outstanding as of 12/31/2016 2.5 million. SAR’s are settled as equity or cash at the discretion of the board.

4. Insider ownership of outstanding common shares is 1.94%


Copyright 2017


Advantaged Tax Structure

• Estimated NOL net tax value as of 12/31/2016: $347MM

• NOL optimization over time

• Situations that may limit future utilization of NOLs1

31

Note: 1. Section 382 of the Internal Revenue Code generally requires a corporation to limit the amount of its income in future years that can be offset by

historic loss carryforwards (NOL) after a corporation has undergone an ownership change


Low effective tax rate for the foreseeable future

Copyright 2017


Balanced Approach to Capital Allocation

32

Business

Profit

High ROIC Projects

Convertible and Share Repurchases

Required Investments in Safety & Maintenance

Copyright 2017


Copyright 2017


$9.52 $9.75 $9.31 $8.92 $8.98 $8.73 $8.91

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Share and Bond Repurchases

33

$5.0 $6.5 $7.8 $4.0 $5.8

$39.6

$5.6

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

March 2016 Convertible Debt Repurchase3 Q1’16 Q2’16

Value Repurchased $60.9 $5.6

Discounted Value 95.3% 93.1%

525 668 837 448 648

4,533

628

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Net Book Value per share – Year end Historical

Share Repurchase ($MM)1Number of Shares Repurchased (in thousands)

Average Share Repurchase Price

$9.46

$16.27$17.53

$14.01$15.83

2012 2013 2014 2015 2016

Notes:

1. Decline in net book value primarily due to non-cash write-off of goodwill

2. Includes share repurchases from February 2015 and March 2016 Programs

3. Value of shares or convertible debt repurchase includes fees and commissions


1

2

2

2

Cumulative Repurchased

Value $74.3

Copyright 2017


Copyright 2017


Moving to

34

Expecting $100+ million

of adjusted EBITDA2 from

base business without RHD

Realizing full year of RHD returns

estimated at $50+ million of

adjusted EBITDA2

Market Dynamics / Biodiesel / RHD / International Operations

Capturing Downstream Margin / Specialty Products

Adding

geographies, products

and markets

$150+ MM of adjusted EBITDA1,2

Maximizing Optimizing Expanding

Notes:

1. $150+ MM of adjusted EBITDA assumes retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit (BTC), as well as stable prices for energy, raw material, and biofuel related RINs and credits. There is no assurance that BTC will be retroactively reinstated.

2. Adjusted EBITDA is a non-GAAP measure. See Appendix for a definition of Adjusted EBITDA and a detailed reconciliation to Net Income in accordance with GAAP


Copyright 2017


Randy HowardInterim President & Chief Executive Officer

Natalie Merrill Vice President, Chief of Staff

Chad Stone Chief Financial Officer

Jean ScemamaVice President, REG Energy Europe & International Trading & Commodities

Brad Albin Vice President, Manufacturing

Doug LenhartVice President, Procurement & Logistics, North America

Eric BowenVice President, Corporate BusinessDevelopment & Legal Affairs

Chad Baker Controller, Chief Accounting Officer

Gary HaerVice President, Sales & Marketing

Todd RobinsonTreasurer

Experienced Management Team

35

Biographies available at www.regi.com

http://www.regi.com/

Copyright 2017


Stock Information

36

Symbol REGI

Exchange NASDAQ

50 Day Avg Daily Volume (457,861 as of 8/4/17 per NASDAQ)

Market Cap (8/4/17) $463.1 million, $12.00 per share

Analyst Coverage Canaccord Genuity: John Quealy

Piper Jaffray: Brett Wong

Roth Capital Partners: Craig Irwin

Copyright 2017


($mm) 2011 2012 2013 2014 2015 2016

Net Income (Loss) 88.87 22.26 186.36 82.54 (151.71) 44.71

(Income) Loss from Equity Investments (0.44) - - - - -

Income Tax (Benefit) Expense 2.98 1.45 4.94 3.57 (8.70) 4.27

Interest Expense 8.10 4.68 2.39 6.69 11.87 15.99

Other Income (0.93) (0.17) (0.38) (0.66) (0.47) (15.80)

Change in fair value of Seneca Holdco liability 2.10 (0.35) - - - -

Change in fair value of preferred stock conversion feature embedded derivatives (7.94) (11.97) - - - -

Stock issued for glycerin termination - 1.90 - - - -

Change in fair value of contingent liability - - - (6.63) (0.36) 7.90

Bargain purchase gain from acquisition - - - - (5.36) -

Gain on involuntary conversion - - - - - (9.89)

Impairment of goodwill - - - - 175.03 -

Impairment of asset4 - - - - - 17.89

Straight-line lease expense 1.90 (0.29) (0.65) (0.64) (0.42) (0.29)

Depreciation 7.18 8.02 9.70 15.26 25.00 31.83

Amortization (0.45) (0.75) (0.75) (0.21) (0.72) (0.36)

Other - - - 0.07 0.84 -

Non-recurring lease cancellation - - - 1.90 - -

Non-recurring business interruption - 0.86 (0.86) - - -

Non-cash Stock Compensation 5.93 13.12 5.42 5.88 5.16 5.90

Adjusted EBITDA before 2012 BTC 107.30 38.76 206.17 107.77 50.16 102.15

2012 Retroactive BTC2 - 57.75 (57.75) - - -

Adjusted EBITDA 1,3 107.30 96.51 148.42 107.77 50.16 102.15

Adjusted EBITDA Reconciliation - Annual

37

Notes:

1. Adjusted EBITDA is a Non-GAAP financial measure that REG defines as net income adjusted for net interest expense, income taxes, depreciation and amortization, and further adjusted for other items, that REG

does not believe are indicative of its core operating performance, including (Income) Loss from equity investments, impairments on assets/and of investments, other income, non-cash stock compensation, change in

fair value of Seneca Holdco liability, change in fair value of interest rate swaps and change in fair value of preferred stock conversion feature embedded derivatives and straight line lease expense.

2. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which reinstated a set of tax extender items including the reinstatement of the federal biodiesel blenders tax credit for 2013 and

retroactively reinstated the credit for 2012. The retroactive credit for 2012 resulted in a net benefit to us that was recognized in first quarter 2013, but because this credit relates to the operating performance and

results of 2012 it is excluded from 2013 Adjusted EBITDA and allocated to the 2012 periods based upon gallons sold.

3. Total balance may not foot due to rounding

4. Represent the impairment charge to write down the carrying value of certain assets, mostly attributed to the company’s Emporia facility, to remaining salvage value.

Copyright 2017


Adjusted EBITDA Reconciliation

38

Note: 1 Adjusted EBITDA is a Non-GAAP financial measure that REG defines as net income adjusted for net interest expense, income taxes, depreciation and amortization, and further adjusted for other items, that

REG does not believe are indicative of its core operating performance, including (Income) Loss from equity investments, impairments on assets/and of investments, other income, non-cash stock

compensation, change in fair value of Seneca Holdco liability, change in fair value of interest rate swaps and change in fair value of preferred stock conversion feature embedded derivatives and straight line

lease expense.

2 Total balance may not foot due to rounding.

($mm) 1Q’16 2Q’16 3Q’16 4Q’16 20162 1Q’17 2Q’17

Net Income (Loss) (6.89) 7.71 23.51 20.38 44.71 (15.9) (34.8)

Income tax (benefit) expense 0.73 1.30 (1.2) 3.45 4.27 1.08 1.96

Interest expense 3.31 3.74 4.49 4.45 15.99 4.54 4.48

Gain on involuntary conversion (3.54) (1.00) (3.47) (1.88) (9.89) - -

Other (income) expense, net 0.09 (15.74) (2.70) 2.55 (15.80) 0.32 (0.03)

Change in fair value of convertible debt conversion liability

- - - - - 0.17 32.55

Change in fair value of contingent liability (0.02) 3.57 1.12 3.22 7.90 0.59 (0.02)

Loss on the Geismar lease termination - - - - - - 3.97

Impairment of assets - - - 17.89 17.89 - 1.34

Straight-line lease expense (0.09) (0.08) (0.07) (0.04) (0.29) (0.03) (0.09)

Depreciation 7.67 7.82 7.95 8.38 31.83 8.42 8.52

Amortization (0.14) (0.13) (0.13) 0.05 (0.36) 0.13 0.15

Non-cash stock compensation 1.08 0.86 2.13 1.83 5.90 1.31 1.69

Adjusted EBITDA1,2 2.20 8.05 31.62 60.27 102.15 0.60 19.70

Business Update August 4, 2017 - Jefferies Group · to update any forward-looking statements based on new developments or changes in our expectations. Non-GAAP Financial Measures

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