Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills
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Transcript of Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills
A New Science in Sustainable Plastic Technology "Cradle to Cradle"
2012 Clean Tech. Winner 2012 Top 25 World Plastic Innovation Winner
Multiple Points for Revenue Generation - “Many Bites of the Apple”
1st Closed Loop Recycling Center Utilize Fly Ash, Glass & Plastic 1-7 as a Raw Material- Reduces or
Eliminates Growing Landfill Burden
1st. True Structural Products, Eco-friendly Process
Fully Integrated Business - Control Over Entire Supply Chain
Scalable Process Poised for Global Expansion
Value Proposition
Pellet
Productio
n
Waste
processing
Executive Summary
5 - Revenue from licensing opportunities
Commercializing novel, award-winning plastic recycling and manufacturing technology
Product
Manufacturing
Recyc
lable
Was
te
1 - Revenue from regional haulers tipping fees
2 - Revenue from operating a material recovery facility
3 - Revenue from operating a processing facility
4 - Revenue from selling finished goods
1. Landfills are rapidly filling, causing financial & environmental issues for local governments
2. Waste & recycling haulers have lower profitability due to hauling loads long distances
3. Recycled plastics have many inherent weaknesses
4. Growing demand for high performance green building materials can not be met by the current recycled plastic technology on the market
PROBLEMS
Problems & Solutions
4. Architects, contractors, building and home owners will now be able to use superior performing green building materials made of recycled plastic
3. Recycled plastics manufacturers will gain improved performance from our pellets
1. Local governments – reduce or eliminate waste going into landfills
2. Waste/recycling haulers – increased profitability due to shorter hauls
SOLUTIONS
Our recycled product has a broad range of physical properties which can be manipulated and easily customized to fit specific needs…
Float ↔ Sink Flexible ↔ Rigid Soft ↔ Hard
Our technology has undergone rigorous testing and structural certifications, and has won major awards
Our Proprietary Technology
Our know-how and novel technology produces a durable recycled product:
• Strong as wood and concrete
• Mfg. through a zero waste cost-effective process
Our Game Changing Technology’s Benefits
Impervious to salt/fresh water, acid, insects, mold, rot, warping, splitting
30+Product Applications Completed
• Sold & installed 10 yrs. ago • 2yrs. full scale manufacturing• Photos are actual products produced
Validated Technology
Favorable test results from two Independent labs… - Material Testing Services of University Northern
Iowa - Twin Cities Testing
First recycled plastic product awarded an engineering stamp certifying STRUCTURAL weight-bearing capabilities
Product ranked in “Top 25 World Plastic Innovations” by Polymer Solutions
Product and business model 2012 Minnesota Cup Clean-tech Winner
Market Dynamics
Siding Market 2013 US Market Size = $10.2 Billion US Siding demand to approach $ 13 Billion an increase of 28% by 2016
Decking/Plastic Market US Market demand for wood-plastic composite and plastic lumber will see an estimated 13 % CAGR - $5.4 billion market in 2015
Green Building Market 44% of all non-residential construction projects use green materials 54% of office projects, helped by green building mandates for government offices 44% of health care projects went to green materials in 2012 45% of school projects use green material applications 61% of residential and remodeling use sustainable green building products
Our Competition
Industry Growth Of Our Two Largest Siding Competitors:
Manufacturer Revenue 2011 Revenue 2010
LP siding (Louisiana Pacific) $341.5 M
$324.2 M
Hardy Board Siding $814 M
$828.1 M
Overall Siding Market Growth + 5% + 4%
We intend to compete against other players in the market by capitalizing on our advantages:
Far greater lifespan
Vastly superior materialLower cost end product
Ease of application
Lower maintenance cost
Go To Market ModelWaste Receiving• County mandates that haulers must pick up recycling ensures supply• Government can mandate which recycler the hauler must use• Current letters of intent will transition into multi-year contracts • Vastly reduced trucking distances entice haulers to join
Waste Haulers
Raw Waste Commodities Buyers
Recycled Plastic Manufacturers
Architects, Designers, Building Owners
Raw Waste Commodities• Regional commodity brokers will be used• Partnering with regional brokers to ensure the best commodity price • Partnering with these brokers also reduces our trucking costs
Recycled Plastic Pellets• Establish partnerships with plastic manufacturers capitalizing on our
pellets superior performance produced on standard equipment• Enter into licensing agreements with these companies to take
advantage of their OEM brand name, sales/marketing channels• Speaking at industry events to create awareness & thought
leadership
Green Building Products• Utilize brokers to sell directly to regional distributors will allow us to
use their existing sales force to get our products to end users, and reduces our initial sales force payroll expenses
• Marketing via ads in industry publications, tradeshows• Speak at conventions based on interest in unique exciting technology
Facility Revenue Schematic Floor-plan
Material RecoveryFacility
1. Sort recycled material. Glass, Metals, Paper commodities sold
2. Residual waste sent to be burned at Waste to Energy Facility
3. Plastics sent to Processing Facility
ReceiveRecycledWaste
Material
Plastic ProcessingFacility
1. Prepare Plastic Waste for Manufacturing
2. Sell excess commodities
ProcessedPlasticsStorage
Waste Mineral fills
Final Goods Production Lines
Siding
Decking
Plastic Lumber
Pelletizin
g
1 2 3
45
Business Flow & Integrated Facility Diagram
Facility Revenue Schematic Floor-plan
Material RecoveryFacility
1. Receive revenue from Metals,& Paper commodities sold
2. Plastics sent to Processing Facility
ReceiveTipping fee from haulers
Plastic ProcessingFacility
Sell excess commodities
ProcessedPlasticsStorage
Receive revenue from Mineral fills
Final Goods Production Lines
Siding
Decking
Plastic Lumber
Pelletizin
g
1 2 3
45
Receive revenue from finished goods & pellets
Business Revenue Flow Diagram
Book of Business
Envirolastech has secured multiple Letters of Intent/Interest from a variety of regional and national distributors and construction companies eager to distribute, sell, install and promote our products.
Larson’s Siding and Windows E3 ServicesMaster Pallets BTS ConstructionBabcock Lumber Play By Design
Envirolastech is in discussions with government entities for potential facilities location and use permits:
Rochester Area Economic Development Rochester City CouncilPine Island Area Economic Development Louisiana Economic Development Michigan Economic DevelopmentMarquette Area Economic DevelopmentCity of Marquette Michigan
US Environmental Protection Agency Minnesota Pollution Control Agency Olmsted County Waste ManagementMinn. Department of Natural Resources
The TeamThe Core
Professional Partners Advisory Board
Briggs and MorganJoseph T. Kinning
Wendland and UtzDavid Peterson
McGladrey L.L.P.Chad Anderson CPAJim Berg CPALinda Newman Tax
Senior Advisor
Bill HeimerSteven JustusDon KeyssorIain McnerlinDavid Milton
Paul Schmitt CEO
Tim Pickett COO
Geno Wente VP Waste Materials and Logistics
Katy Warden CFO
Katrine JustusAdministration and Media
Mitch Augeson Sales
Jeff MintzSeiga OhimineBill ShadidDon Shelby
Advisors
Mike Vekich
Financials
Revenue & Net IncomeIn $Millions
0
10
20
30
40
50
60
70
80
Net Income
$ 46
.8 M
1st Facility In Olmsted County
$ 21
.8 M
What are the Key assumptions that support these numbers?
What are the Key milestones to hit these numbers?
Is this scalable to other communities and what would it look like?
$14.
25 M
Financials
Revenue & Net IncomeIn $Millions
3 Facilities Started by Yr. 5
2014 2015 2016 2017 2018 2019 2020 2021 2022
-20,000,000
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
ProfitRevenue
2nd p
lan
t st
arte
d
3rd p
lan
t st
arte
d
Land & Building $5,000,000
Raw Materials $200,000
Equipment $6,000,000
Marketing $1,250,000
Educational Program $150,000
Legal $300,000
R&D $400,000
Overhead $1,300,000
Closing Costs $400,000
TOTAL $15,000,000
Capital Requirements
11 million –USDA Loan Program, Goodhue County Electric COOP Loan 0% 1 million –Deeds grant Mn.
3 million - Private Equity Raise
Capital Source Break Down
Competitive Advantages of Integrated Business
Multiple income streams
Decreased cost and raw material control
Ability to leverage staffing resources
Strong profit margins
1st Material Recovery Facility in Southern MN.
1st Plastics Processing Facility in Southern MN.
1st True “cradle to cradle” Zero Waste Recycling & Manufacturing facility
100% green recycling
Scalable with Proven Manufacturing & can be replicated in other communities by expansion or licensing
Employment for Hundreds
of People
Strong, Long Lasting
Products
Protecting the Environment
Communities Independent of Landfills
Converting Waste to Produce
Energy and Recycled Products
Broad Reach of Novel Technology
www.envirolastech.com 507-322-8195
Upon request these materials are available.
Subscription agreement - Business plan - 5yr projections -24 month cost projection - Audited books, all with Significant Assumptions, All reviewed and completed by McGladrey L.L.P. L.O.I.’s From Haulers & Distributors - A.S.T.M. testing - New Equipment Verification Runs. More Additional Supporting Documentation Available Upon Request
Additional Information Available
Thank You“Honor commerce as the engine of change”
William McDonough
A New Science in Sustainable Plastic Technology"Cradle to Cradle"