Ecoslops Sa · EURONEXT:ALESA
Ecoslops Sa — FY2015 Earnings Presentation
33 slides from Ecoslops Sa's earnings presentation, April 2016
Slide 1: Presentation of 2015 Results: Strategy & Objectives
PRESENTATION OF 2015 RESULTS STRATEGY & OBJECTIVES An innovative solution – sustainably producing fuel from marine fuel residues (slops)
Slide 2: Contents
Contents 1. Background – the shipping industry’s slops challenge 2. Solution – Ecoslops’ micro refining technology 3. About Ecoslops 4. Financial Results 5. Looking forward April 2016 2
Slide 3: 1. Background – the shipping industry's slops challenge
1. Background – the shipping industry’s slops challenge
Slide 4: The shipping industry's slops challenge
The shipping industry’s slops challenge Historical situation Current Situation Traditionally, slops collectors at ports have Low oil prices have driven users to to decant the residues (slops) and re-sell consume only virgin, purer fuel products a portion as a hydrocarbon residue to (free of sediment
Slide 5: A promising market
A promising market A steady growth in the availability of Slops • Steady growth of global maritime traffic: TMVA 1997-2017e = +3 % / +4 % Vessels use heavy fuel oil (70% of fuel) or distillates (Marine Diesel Oil/Marine Gas Oil) - more expensive Vessels produce residues rich in hydrocarbons : 100+ M
Slide 6: 2. Solution – Ecoslops' micro refining technology
2. Solution – Ecoslops’ micro refining technology
Slide 7: A process which allows 98% of processed slops to be sustainably regenerated
A process which allows 98% of processed slops to be sustainably regenerated and sold back into the market Light Fuel (≈5%*) Light molecules Marine fuels, land-based industries, feedstock for MDO (≈45%*) refineries Heavy molecules IFO 380 (≈15%*) Hydrocarbons from slops Speciality products for the ma
Slide 8: A specialist micro-refinery
A specialist micro-refinery Collection or Separation of Refining of the Sale of the import of sediments, Water hydrocarbon recycled marine hydrocarbon water, and treatment fraction fuel waste (slops) hydrocarbons Wet slops Separation HYDROCARBONS Separation unit Hydrocarbon recycling unit (P2R) POLL
Slide 9: Our first site: Sinès, a strategic location
Our first site : Sinès, a strategic location Number 1 Portuguese port in terms of volume • Located on a major sea route • Deep-water port • Oil terminals around Galp and Repsol • Container-ship terminal • Regional hub of MSC (2nd largest global ship- Sinès owner) Exclusive rights for the collection
Slide 10: 3. About Ecoslops
=coslops 3. About Ecoslops
Slide 11: Key dates for Ecoslops
Key dates for Ecoslops 2008 2012 PILOT Tender won in Sinès In Malta => sub-concession contract and exclusivity of slops collection Start-up of Sinès 2013 Certified Fuels ISO 8217 First Sales Construction of the industrial unit in the Port of Sinès began 2015 Rise in production capability of Sinès an
Slide 12: Technical committee and experience to support operations
Technical committee and experience to support operations • Former CEO of Heurtey Petrochem (Engineering O&G) Michel Pingeot • Co-inventor of the process • Co-founder of Ecoslops • Former Executive VP of TOTAL Refining and R&D Jean-Claude Company • Co-founder of Ecoslops Jean-Louis Mauléon • Former D
Slide 13: An active Board of Directors
An active Board of Directors M. Pingeot J-C. Company Co-founder and Chairman P. Monnot Ex Total Gemmes Co-founder L. Henry O. Fortesa TDJ* EXPERTS : J4H • Petroleum & Refining • Residues maritime regulations • International Projects P. Foulon • Financing and growth companies P. Van den Dries Bluecre
Slide 14: 2015: Commissioning and early successes
2015 : Commissioning and early successes • High quality staff trained and operational • Proven efficiency of the industrial facility in the Port of Sinès – Confirmation of the viability of the plant operating at 2,500 T/month – Proven that 98% of slops can be regenerated • First sales of regenerated
Slide 15: Developing international visibility of Sinès
Developing international visibility of Sinès, highlighting our specialist expertise • Invitation to introduce our solution and technology at IMO (International Maritime Organization) in February 2016 • Visits by national and port delegations to Port of Sinès plant since its opening : – Ivory Coast –
Slide 16: Developing international visibility/building reputation
Developing international visibility/building reputation Avril 2016 16
Slide 17: 4. Financial Results
4. Financial Results
Slide 18: Increase in the collection of slops: Sinès +29% in Q1 2016
Increase in the collection of slops : Sinès +29% in Q1 2016 1200 49%* 51%* 53%* 1 200 m3 1 700 m3 2 200 m3 1000 800 600 400 200 0 juil.-14 nov.-14 juil.-15 nov.-15 févr.-14 avr.-14 mai-14 avr.-15 janv.-14 août-14 sept.-14 mai-15 août-15 sept.-15 juin-14 janv.-15 juin-15 janv.-16 mars-14 oct.-15 oct.
Slide 19: Collapse of slops prices
Collapse of slops prices 10.000 T of slops imported in 6 months : operational and commercial success August 2015 Nov. 2015 Jan. 2016 Brent 50 $ 44 $ 29 $ -42% the barrel Quantity 3 200 T 3 100 T 3 700 T Cost of transport/T Base 100 90 65 Cost of slops/T Base 100 60 7 -72% per tonne (CIF) April 2016
Slide 20: Gross margin/T preserved even with high oil prices
The Gross margin/T is preserved even with the high oil prices, due to the abundance of residues 160 140 120 100 80 60 40 20 0 août-15 sept.-15 oct.-15 nov.-15 déc.-15 janv.-16 févr.-16 mars-16 Slops ($/T) Marge Brute Brent ($/T) Base 100 in October 2015 April 2016 20
Slide 21: 2015: Profit and loss account
2015 : Profit and loss account 2015 : first sales of products from regenration of residues • Increase in operating revenues en M€ 2015 2014 Var. (inventoried products end of 2015) Sales revenues 2,3 2,2 0,1 • Within operating expenses : others 0,4 0,2 0,2 Operating revenues 2,7 2,4 0,3 – 2,2 M€ of c
Slide 22: 2015: Balance Sheet
2015 : Balance Sheet Balance sheet ACTIF (net) 2015 2014 Var. • Strengthened equity and a balance en M€ sheet adpated to the industrial activity Fixed asset Differred tax assets 19,1 1,0 17,7 0,6 1,4 0,4 Net fixed asset 20,1 18,3 1,8 • A low-debt group: repayment of Raw materials 0,9 0,9 financial d
Slide 23: Cash flow 2015 and utilizing the IPO cash
Cash flow 2015 and utilizing the IPO cash IPO Alternext / gross amount raised: 18,0 m€ Net amount raised : 14,2 m€ • The payment of suppliers of capex : 4,9 m€ • Financing of operational losses : 6,2 m€ • Of which 2,2 M€ non-recurrent linked to start-up in Sinès • Reimbursement of bank financing: 1,
Slide 24: A solid and adapted business model
A solid and adapted business model • Gross margin preserved by the variable « residues » • Optimization Opex and Capex owing to the Sinès experience Simulation for a new industrial unit • Environnement : Brent : 40-45 $/b 80-100 $/b Production : > 35 000 T/year > 35 000 T/year Capex : 10-15 M$ 10-15
Slide 25: Shareholding
Shareholding • Shareholding structure (November 2015) Avril 2016 25
Slide 26: Stock price: Ecoslops and Brent
Stock price: Ecoslops and Brent 20 70 18 60 16 14 50 12 40 10 30 8 6 20 4 10 2 0 0 Ecoslops (ech. gauche) Brent ($ - ech. droite) April 2016 26
Slide 27: 5. Looking Forward
INNOVATIVE MARINE FUEL OIL RECYCLING SOLUTION 5. Looking Forward Paris – April 2016
Slide 28: 2015: Learnings (1/2)
2015 : Learnings (1/2) • Undersizing of logistics and storage – Problem resolved at the begining of 2016 • Long lead time for agreement with customers (> 6/9 months) – Different needs of customers • qualification XFO and IFO : T1 2016 • qualification MDO : in progress 2015 : the overall increase was
Slide 29: 2015: Learnings (2/2)
2015 : Learnings (2/2) • An interest in the speciality products (XFO) due to the relative scaricity of this type of product and to its characteristics – Selling price > 100 €/T, partially decorrelated from the price of Brent • Important operational sources of productivity (purchasing, staff, rentals
Slide 30: 2016 – What's to come?
2016 – What’s to come? • Port of Sinès : – Achievement of the 2 500 T/month (30 000 T/year) regime by the end of 2016 – Working on productivity in order to lower the breakeven point – Finalisation of the products’ qualification with customers => Financial independence expected by end of 2016 • Corpo
Slide 31: Consolidation of financial structure in Q1 2016
Consolidation of financial structure in Q1 2016 • Available funding 1,6 M€ at the of end December 2015 vs. 6,8 M€ on 30 June 2015 • ORNANE (private equity in February 2016) of 5,5 M€ for : – Growth of Sinès operation – Funding of future developments (part of projects’ equity) – For half subscribed b
Slide 32: A large portfolio of opportunities
A large portfolio of opportunities Signed or Feasibility Launching of Discussions ongoing Construction Operation study studies partnership • USA • Oman • Black Sea • France-1 • Sinès • South Africa • Egypt • Ivory Coast • UAE • ARA zone • Japan • France-2 • Singapor April 2016 32
Slide 33: An innovative solution – Producing fuel from marine fuel residues
An innovative solution – Producing fuel from marine fuel residues