Alto Ingredients (ALTO) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Company History and Asset Integration

• Over 150 years of experience in alcohol production, with three integrated Illinois facilities enhancing operational efficiency.

• Consolidation of assets since 2003 has enabled optimization and expansion into higher-margin products.

• Focus on organic growth and unique investment opportunities, leveraging long-standing regional relationships.

Strategic Focus and Market Positioning

• Focus on higher-margin specialty alcohol and essential ingredients for diverse consumer and commercial markets.

• Targeting premium product segments in health, home, beauty, food, beverage, industry, and agriculture.

• Expansion into beverage-grade alcohols has differentiated offerings and built a sticky customer base.

• Local production in the Western US and Illinois provides logistical advantages and premium pricing for low-carbon products.

• Optimizing asset base and executing efficiency initiatives to enhance profitability.

Operational Improvements and Sustainability

• Pursuing carbon capture at Illinois plants and developing CCS at Pekin Campus to monetize biogenic CO2 and benefit from 45Q credits.

• Investments in traceability, supply chain transparency, and sustainability certifications to meet demand for lower-carbon products.

• Infrastructure upgrades, such as increased corn storage, boilers, and energy efficiency, deliver rapid paybacks and reduce carbon intensity.

• Exploring biogas conversion and high-protein systems at Magic Valley.

• Evaluating Illinois SAFE CCS Act requirements and leveraging IRA Section 45Q tax incentives.