# EDGAR Filing Document

**Accession Number:** 0001424844
**File Stem:** 0001140361-23-007602
**Filing Date:** 2023-2
**Character Count:** 14028
**Document Hash:** fa3f2b52aabde3c4d8fd451c1458fe6f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-23-007602.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001140361-23-007602

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 43

**CONFORMED PERIOD OF REPORT**: 20230217

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SOUTHWEST IOWA RENEWABLE ENERGY, LLC
- **CENTRAL INDEX KEY:** 0001424844
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL ORGANIC CHEMICALS [2860]
- **IRS NUMBER:** 202735046
- **STATE OF INCORPORATION:** IA
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53041
- **FILM NUMBER:** 23641866

**BUSINESS ADDRESS:**
- **STREET 1:** 10868 189TH STREET
- **CITY:** COUNCIL BLUFFS
- **STATE:** IA
- **ZIP:** 51503
- **BUSINESS PHONE:** 712-366-0392

**MAIL ADDRESS:**
- **STREET 1:** 10868 189TH STREET
- **CITY:** COUNCIL BLUFFS
- **STATE:** IA
- **ZIP:** 51503

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported) <u> February 17, 2023 (February 17, 2023) </u>

<u> SOUTHWEST IOWA RENEWABLE ENERGY, LLC </u> <br> (Exact Name of Registrant as Specified in Its Charter)

<u>IOWA</u> <u>000-53041 </u> <u>20-2735046 </u> <br> (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)

<u> 10868 189th Street, Council Bluffs, Iowa </u>   <u>51503 </u> <br> (Address of Principal Executive Offices) (Zip Code)

<u> (712) 366-0392 </u> <br> (Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)<br>

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 7.01.** | **Regulation FD Disclosure** |

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On February 17, 2023, Southwest Iowa Renewable Energy, LLC (the "Company") will hold its 2023 Annual Meeting of Members (the "Annual Meeting") and a copy of the presentation to be used in connection with the Annual Meeting is attached hereto as Exhibit 99.1 and is incorporated by reference into this Item 7.01.

The foregoing information (including the exhibit hereto) is being furnished under "Item 7.01- Regulation FD Disclosure". Such information (including the exhibit hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Neither the filing of this Current Report nor the furnishing of this information pursuant to Item 7.01 means that such information is material or that disclosure of such information is required.

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| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits** |

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(d) Exhibits

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| | |
|:---|:---|
| **<u>Exhibit</u>**<br> **<u>Number</u>** | **<u>Description</u>** |
| [99.1](brhc10048459_ex99-1.htm) | Annual Member Meeting Presentation dated February 17, 2023 |

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **SOUTHWEST IOWA RENEWABLE ENERGY, LLC** | **SOUTHWEST IOWA RENEWABLE ENERGY, LLC** |
|  | By: | /s/ Ann Reis |
|  |  | Ann Reis |
| Date: February 17, 2023 |  | Chief Financial Officer |

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## Exhibit 99.1

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 **Exhibit 99.1**<br>

**** <br> ![](brhc10048459_ex99-1slide1.jpg)

2022 Fiscal Year Annual Meeting Friday, February 17, 2023 20

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![](brhc10048459_ex99-1slide2.jpg)

This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are made in good faith by Southwest Iowa Renewable Energy, LLC ("SIRE," "us" or "we") and are identified by including terms such as "may," "will," "should," "expects," "anticipates," "estimates," "plans," or similar language. In connection with these safe-harbor provisions, SIRE has identified in its annual report on Form 10-K, and in its other filings with the SEC, important factors that could cause actual results to differ materially from those contained in any forward- looking statement made by or on behalf of SIRE, including, without limitation, the risk and nature of our business and the effects of general economic conditions on us. We may experience significant fluctuations in future operating results due to a number of economic conditions, including, but not limited to, competition in the ethanol industry, commodity market risks, financial market risks, counter-party risks, and risks associated with changes to federal policy or regulation. The cautionary statements and risk factors in this disclaimer and our Form 10-K expressly qualify all of SIRE's forward-looking statements in this presentation. The forward-looking statements contained in this presentation are included in the safe harbor protection provided by Section 27A of the Securities Act of 1933. SIRE further cautions that such factors are not exhaustive or exclusive. SIRE does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of SIRE unless an update is required by applicable securities laws. FORWARD-LOOKING STATEMENTS AND DISCLAIMER 20

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![](brhc10048459_ex99-1slide3.jpg)

Business Meeting Agenda Karol King – Chairman of the Board Call the Meeting to Order – Welcome Report on Notice of Meeting/Quorum Adjournment of Business Meeting 20

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![](brhc10048459_ex99-1slide4.jpg)

Company Update Mike Jerke – CEO/President 20

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![](brhc10048459_ex99-1slide5.jpg)

FY 2022 Recap Margin opportunities Decarbonization Staffing USDA Climate Smart Commodities Grant award Inflation Reduction Act of 2022 Opportunity evaluation Facilities Ongoing Team development 20

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![](brhc10048459_ex99-1slide6.jpg)

Financial Highlights (In millions other than book value.) Metric FY 2020 FY 2021 FY 2022 Thru 12/31/22 Revenue $198.6 $302.8 $387.1 $95.2 Crush Margin $55.3 $69.4 $119.2 $18.7 MEBITDA $11.3 $22.6 $63.9 $4.7 Net Income $(0.4) $8.6 $57.7 $0.7 Total Equity $65.8 $74.4 $120.9 $99.2\* Book value per share $7,332 $8,288 $13,474 $11,048\* Total shares 8,975 8,975 8,975 8,975 \*Distribution of $2,500 per share, $22.4 million total, issued December 2022. 20

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![](brhc10048459_ex99-1slide7.jpg)

Metric FY 2020 FY 2021 FY 2022 Thru 12/31/22 Ethanol Yield (gpb) 2.880 2.931 2.928 2.920\* Corn Oil Yield (ppb) 0.94 0.94 1.09 1.07 Ethanol Price ($/gal) 1.24 1.76 2.41 2.23 Corn Cost ($/bu) 3.48 5.47 6.43 6.90 Revenue ($/gal) 1.73 2.36 3.18 3.25 Variable Expense ($/gal) 0.207 0.217 0.276 0.279\* Fixed Expense ($/gal) 0.131 0.107 0.146 0.138\* Gen & Admin ($/gal) 0.045 0.044 0.059 0.068\* EBITDA ($/gal) 0.097 0.168 0.524 0.161\* \*Undenatured 20

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![](brhc10048459_ex99-1slide8.jpg)

Annual Production Results 5-year (fiscal) Comparison 2018 2019 2020 2021 2022 Ethanol Production 127.9 mg 129.3 mg 117.8 mg 129.8 mg 121.9 mg Corn Consumed (bu.) 43,432,000 44,533,000 40,903,000 44,305,000 41,838,000 Distillers Sales (tons) 408,650 411,300 387,900 410,500 427,400 Corn Oil Prod. (lbs) 38,976,800 43,548,500 38,528,500 41,748,000 45,713,000 Carbon Dioxide (tons) 100,950 100,600 104,059 107,300 93,674 20

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![](brhc10048459_ex99-1slide9.jpg)

119.6 122.7 122.3 124.1 127.9 129.3 117.8 129.8 121.9 29.24 20.0 0.0 100.0 80.0 60.0 40.0 120.0 140.0 2014 2015 2016 2017 2020 2021 2022 Q1 '23 Million Gallons 2018 2019 Fiscal Year Ethanol Production 20

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![](brhc10048459_ex99-1slide10.jpg)

70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 thru 12/31/22 Cents per gallon Costs Fiscal Year Production Depreciation Interest 20

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![](brhc10048459_ex99-1slide11.jpg)

$48.61 $13.18 $4.51 $12.88 ($2.70) ($8.50) ($0.44) $8.58 $57.76 $0.66 -$10.00 $0.00 $10.00 $40.00 $30.00 $20.00 $50.00 $60.00 $70.00 Million -$20.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 thru Fiscal Year 12/31/22 Net Income 20

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![](brhc10048459_ex99-1slide12.jpg)

$30.82 $78.12 $18.27 $25.29 $9.61 $2.97 $11.34 $22.63 $63.88 $4.72 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Million Fiscal Year Modified EBITDA 20

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![](brhc10048459_ex99-1slide13.jpg)

$57 $31 $27 $16 $19 $24 $53 $58 $15 $15 $0.00 $20.00 $40.00 $60.00 $100.00 $80.00 $120.00 $140.00 $124 Million Fiscal Year Historical Debt Bank Debt Sub Debt 20

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![](brhc10048459_ex99-1slide14.jpg)

Debt Metrics (millions) FYE 2020 FYE 2021 FYE 2022 YTD 12/31/21 Bank Debt $53.1 $57.5 $15.4 $15.2 Bank Debt/Gallon\* $0.41 $0.44 $0.12 $0.12 Interest Payments $1.9 $2.0 $1.5 $0.3 \*Based on 130 mgy production 20

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![](brhc10048459_ex99-1slide15.jpg)

2.9 1.8 15.7 4.0 0 2 4 14 12 10 8 6 16 18 2020 2021 2022 Q1 '22 Million Gallons Fiscal Year Undenatured Ethanol Sales 20

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![](brhc10048459_ex99-1slide16.jpg)

Benchmarking: Goal Upper 25% of IA/NE Plants EBITDA Year IA/NE FY 2018 76% FY 2019 54% FY 2020 53% FY 2021 47% FY 2022 31% 20

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![](brhc10048459_ex99-1slide17.jpg)

Capital Expenditures 20

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![](brhc10048459_ex99-1slide18.jpg)

Capital Expenditures Ethanol storage expansion 1 – 1.5 million gallon tank Completion Spring 2023 $2.9 million Ethanol blending skid installation Product optionality Completion May 2023 $560k Final storage ethanol tank floor replacement (2) Integrity Completion November 2023 $406k 20

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![](brhc10048459_ex99-1slide19.jpg)

Capital Expenditures Replace conveyors for DDG $580k Completion May 2023 Slurry Heating and Reduction of Backset Increase DCO yield increase energy efficiency $3.6 million Completion June 2023 20

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![](brhc10048459_ex99-1slide20.jpg)

Carbon Intensity (CI) Most recent Formerly (prior to capex and improvements): 79.8 Current Ethanol and DDG: 71.5 Ethanol and WDG: 61.2 Ethanol from CKF: 22.3 Opened up CA opportunity Other 20

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![](brhc10048459_ex99-1slide21.jpg)

Carbon Intensity (CI): How to go lower yet? Continued focus on energy efficiency Solid history Combined Heat and Power Carbon Capture Utilization and Storage Regenerative Farming Practices Cost/Benefit? Inflation Reduction Act of 2022 20

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![](brhc10048459_ex99-1slide22.jpg)

IRA 2022 and Decarbonization 45Q Increased tax credit to $85 per tonne for storage in geologic formations or $60 per tonne for EOR. Provided an option for direct pay. 45Z Credit for fuels that have lifecycle GHG emissions below 50 kgCO2e/mmBTU. Up to $1 per gallon for fuel with a GHG emission rate of 0 kgCO2e/mmBTU. Permanent storage of CO2 ~30 point reduction in CI 20

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![](brhc10048459_ex99-1slide23.jpg)

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![](brhc10048459_ex99-1slide24.jpg)

Regenerative Ag USDA Climate Smart Commodities Grant Provide premium to farmers for agronomic practices that reduce the CI of corn. Demonstrate to regulatory agencies that farming practices have a positive benefit on lowering CI of corn. Lower CI corn as feedstock drives value proposition for resulting ethanol production. 24

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![](brhc10048459_ex99-1slide25.jpg)

Realizing low-carbon fuels, chemicals and by-products Driving the Life-cycle GHG's Emissions of Jet, Gasoline, and Diesel to Net Zero Soil carbon capture has potential to drive negative life-cycle GHG emissions 100g/MJ CO2 Emissions Og/MJ CO2 Emissions Fossil GHG Emissions Customers Farm Sustainable Fertilizer Bio Gas Plant Manure 25

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![](brhc10048459_ex99-1slide26.jpg)

Offset vs. Insets: Capturing All Carbon Intensity Value VS. OFFSET CARBON MARKETS Industry has focused on offsets and are used as a mitigation strategy for typically unrelated value chains These programs trade carbon benefits, but don't address sustainability issues in their own value chain 25 INSET CREDITS TO VALUE CARBON Verity will be creating carbon insets and tracking sustainability through complex business systems Creates a differentiated value proposition based on traceable, high-quality CI for value chain partners and customers Allows carbon to be valued in the product or lifted and monetized/traded separately, depending on claims

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![](brhc10048459_ex99-1slide27.jpg)

End to End Mapping of the Full Life Cycle PRODUCT LIFECYCLE CI SCORE Crop Farm Bio Fuel Plant Roadways Corn CI Score Ethanol CI Score CI Score of Product Lifecycle Tokenization Tokenization 25

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![](brhc10048459_ex99-1slide28.jpg)

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Questions and Answers 28

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Thank you! 28

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