Ecoslops Sa · EURONEXT:ALESA
Ecoslops Sa — FY2016 Earnings Presentation
34 slides from Ecoslops Sa's earnings presentation, Apr 13, 2017
Slide 1: 2016 Annual Results: Strategy & Objectives
2016 ANNUAL RESULTS STRATEGY & OBJECTIVES A unique technology to upgrade maritime transport oil residues into new fuels and light bitumen
Slide 2: Contents
Contents 1 Presentation 2 2016 key facts and financial results 3 Outlook April 2017 2
Slide 3: Ecoslops: key facts
Ecoslops: key facts Development of Sines 2008 Signing of Marseilles agreement Pilot in Malta 2016 2013 Start of the construction of the Launch of Marseilles project industrial unit at Sines Agreement of a Letter of Intent for Suez Canal region Start-up of Sines Sines ramping up Initial Public Offeri
Slide 4: The P2R column: a real micro-refinery
The P2R column: a real micro-refinery Collection or Separation of Refining of the import of Sediments/ Water Sale of the hydrocarbon hydrocarbon Water/ treatment processed fuels fraction residues (slops) Hydrocarbons HEATED SLOPS Separation HYDROCARBONS Separation Unit Petroleum Residues Refining un
Slide 5: A process which allows 98% of processed slops to be regenerated
A process which allows 98% of processed slops to be sustainably regenerated and sold back into markets Light fuel / Light Molecules Naphta Marine fuels, land-based Gas oil industries, feedstock for refineries… Industrial Heavy Molecules Fuel Hydrocarbons from slops Speciality products for the Light
Slide 6: A high-growth market
A high-growth market Steady growth in petroleum residue volumes • Steady growth of maritime traffic • Ships use Heavy Fuel Oil (70% of fuels) or Marine Diesel Oil - MDO : more expensive Tighter regulation (MARPOL) • Fines are increasingly imposed, and rising (40m$ imposed on a cruise line in Dec.201
Slide 7: Sines: the first operational industrial site since 2015 and ramping up
Sines: the first operational industrial site since 2015 and ramping up 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 Sinès • Regional hub of MSC (2nd largest global
Slide 8: 2016 - Key facts and financial results
INNOVATIVE MARINE FUEL OIL RECYCLING SOLUTION 2016 - Key facts and financial results
Slide 9: 2016, a year rich with success
2016, a year rich with success Validation of technical knowledge • A very high rate of slops regenerated into commercial products: 98% • Upgrading of all types of slops (High and low flash point) • Ran for periods ranging progressively from few weeks to several months • An increase of local expertis
Slide 10: 2016, a year rich with success: commercial success
2016, a year rich with success Commercial success • More customers than available products • Confirmed quality of the end-products (successful registration of products) • Multi-annual sales contracts with main groups, at international standards April 2017 10
Slide 11: 2016, a year rich with success: productivity measures
2016, a year rich with success Productivity measures • Reduction of fixed costs of about 25% in a full year (staff and other expenses) • France and Portugal • A rapid experience curve in Sines • A local base of expertise valuable for future site April 2017 11
Slide 12: 2016: confirmation of the pertinence of the business model
2016: confirmation of the pertinence of the business model Confirmation of technical ability Commercial success Productivity measures PERTINENCE OF THE BUSINESS MODEL April 2017 12
Slide 13: Strong resistance to the Brent price volatility
Strong resistance to the Brent price volatility Aug 2015 Nov 2015 Jan 2016 Dec 2016 Brent 50 $ 44 $ 29 $ 56 $ SLOPS End Products Gross margin/T April 2017 13
Slide 14: Ecoslops: Portugal in 2016
Ecoslops: Portugal in 2016 • Increase by 10% of sub-concession revenues, in line with the port activity • Oil revenues: represent 50% of revenues in 2016 • 17kt of slops treated and 13kt sold (2.5kt self-consumed) • Mix and sale price with strong potential of improvement in 2017 Turnover (M€) 2016 2
Slide 15: Profit and loss account
Profit and loss account 2016: performance improvement • High increase in operating revenues • More than 50% of the revenues stem in M€ 2016 2015 Var. from the micro-refining unit(17,000 tons Sales revenues 4.2 2.3 +1.9 Other products 0.2 0.4 -0.2 treated) Gross margin 3.1 2.0 +1.1 • Controlled opera
Slide 16: Balance sheet
Bilan Balance sheet ASSET (net) 2016 2015 Var. in M€ • Ecoslops financial structure has been Fixed Asset 18,3 19,1 -0,8 Differred tax assets 1,8 1,0 +0,8 consolidated in 2016 by the issuance of Net fixed asset 20,1 20,1 0,0 ORNANE (€5.5€) and the partial Raw materials 0,4 0,9 -0,5 exercise of share
Slide 17: Cash flow 2016
Cash flow 2016 • Strong reduction of cash requirements thanks to increase of sales • Working Capital is under control • Holding Cash expenses: approx. €1.3M i.e. 40% of 2016 cash generated by operations April 2017 17
Slide 18: Outlook
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Slide 19: Outlook 2017: Sines
Outlook 2017: Sines • Continuing increase of production with a 25,000 treated tons/year objective in 2017 • Sale of gas oil to different customers (increase of average selling price per ton) • Further decrease of costs (full year reduction of €600k) • Operating profitability (EBITDA >0) April 2017 1
Slide 20: Outlook 2017: Corporate
Outlook 2017: Corporate • Strenghthening of teams, notably in Business Development • SG&A under control Avril 2017 20
Slide 21: Marseilles Total project
Marseilles Total project • Preliminary agreement signed with Total in September 2016 • Feasability study finalised • Firm agreeements to be signed in April 2017 • Building permit submitted mid-2017 • Objective: operation to begin at the end of 2018 • Capex: approx. €13M April 2017 21
Slide 22: Marseilles Total project
Marseilles Total project Total Ecoslops Total Imported slops April 2017 22
Slide 23: A strong project portfolio
A strong project portfolio Partnership Feasability Launch of Discussions signed or Building Operation study studies pending • USA • Egypt • Marseilles • Sines • South Africa • Oman • Arab Emirates • ARA zone • Japan • Singapore • Morrocco April 2017 23
Slide 24: Share price evolution
Share price evolution (*) 20,0 70,0 65,0 18,0 60,0 16,0 55,0 14,0 50,0 12,0 45,0 40,0 10,0 35,0 8,0 30,0 Ecoslops 6,0 Brent ($) 25,0 4,0 20,0 (*) since IPO April 2017 24
Slide 25: Ecoslops stock
Ecoslops stock • Outstanding number of shares (as of end of February 2017): 3,337,690 • Number of shares traded in 2016: 712,458 shares, i.e. 2,772 shares / day (source Euronext) • High/Low 2016: €5.39 / €11.60 • Analysts CM CIC- Jean-Luc Romain Invest Securities Laurent Wilk AlphaValue – Marzio Foa
Slide 26: Annex
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Slide 27: Board of directors
Board of directors V. Favier Chairman and CEO P-E. Bindschedler J-C. Company CEO of SOPREMA Ex Total Co-founder L. Henry O. Fortesa TDJ* EXPERTISE IN J4H • Refinery and petrol • Maritime regulation • International projects • Financing and growth companies P. Foulon P. Van den Dries Bluecrest OVAM* O
Slide 28: Press
balancing environmental challenges with economic demands \Green Home » News » Energy & Technology » Sustainable slops disposal for ports share | Email) print Sustainable slops disposal for ports 29 Mar 2017 In March 2046, the European Sea Ports Organisation (ESPO) released its priorities for the yea
Slide 29: Press
balancing environmental reen challenges with economic demands Home » News » Energy & Technology » Sustainable slops disposal fr ports Since establishing itself at the Port of Sinés, Ecoslops has developed partnerships with ship owners, notably MSC, that callin the port to discharge their slops. The
Slide 30: Press
Press December 2106 Embracing innovation as the solution to the Based on a micro-refining process, the technology works in the following way: firstly, to optimise distillation, the slops are pre-treated. They are growing ‘slops challenge’. By Vincent Favier heated, decanted and using high-speed vert
Slide 31: Press
Press With shipping’s sustainability profile, and impact on climate change as well as other environmental issues under real scrutiny, the problem of illegal waste disposal is an issue that the industry needs to address urgently. The unknown quantity of the pollution caused cannot be ignored, and sus
Slide 32: Press
4SEA The solution for sustainable slop disposal is here - shipping needs to grasp it The issue of slops disposal has recently gained increased international attention. In March 2016, the European Sea Ports Organisation (ESPO) placed port waste and ship waste as its fifth and sixth biggest priorities
Slide 33: 2017 financial calendar
2017 financial calendar • 13 June 2017: General Shareholders’ meeting • 27 September 2017 : half-year results Investor conferences • Conference Oddo Forum, 5 January, Paris • Conféeence MidCap Portzamparc, 21 March, Paris • Small Cap Event CF&B, 18 et 19 April 2017, Paris • Clean Tech SFAF, 23 May 2
Slide 34: Thanks for your attention
=coslops Thanks for your attention