Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (April 2016)
30 slides from Synthesis Energy Systems's investor presentation, Apr 6, 2016
Slide 1: Synthesis Energy Systems, Inc. - Growth with Blue Skies
Synthesis Energy Systems, Inc. GROWTH WITH BLUE SKIES CLEAN ENERGY TECHNOLOGY FOR THE FUTURE
Slide 2: Forward-looking statements
This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to
Slide 3: Global Large-scale Clean Energy Opportunity
Global Large-scale Clean Energy Opportunity Market Cap $97.3 MM + Industrial Growth Model Shares 86.9 MM + Syngas Enables Developing World to Tap Low-cost Outstanding Domestic Resources, Replaces Expensive NG/LNG Public Float 77.0MM + Multiple Channels, Multiple Products, Multiple % Officers and 11.
Slide 4: Confluence of Factors Propels Large-scale Demand
Ss Confluence of Factors Propels Large-scale Demand + Global Need for Cleaner Energy that is Economical + New Population Growth, Creation of New Middle-class + Driven by World’s Emerging Economies, Building GDP + Economic and Geographic Realities: * iFuture Markets ~ + Abundant Domestic, Untapped, L
Slide 5: SES is Well Aligned, Established & Positioned in China
Ses SES is Well Aligned, Established & Positioned in China + 1% SGT Syngas Production: 2007, Zao Zhuang New Gas Company, Shandong Province (2 systems) + 2 Facility Joint Ventures (ZZ, Yima); China Regional JV: Tianwo-SES JV; Silk Road Global Alliance: China Coal Research Institute/CCTEG + Low-cost C
Slide 6: SES Gasification Technology (SGT)
=S SES Gasification Technology (SGT) + World's Only Commercially Demonstrated Technology that can Economically Gasify Wide Range of Feedstocks to Produce Clean Syngas + 10 Systems Operational, 2 More in Completion + High Barrier to Entry by Competition with Multi- decade >$400MM Development and Depl
Slide 7: SGT: Superior Gasification Technology
SGT: Superior Gasification Technology {8.55 + Higher efficiency leading No + Lower operating costs cold gas _ generation + Lower capital investment emeene of coal tars, + Low rank coal capability eS alles oils, jn i commercial pep oleies, Eco-friendly as well as Economical gasification and water + E
Slide 8: Commercial Gasification Systems
be + 12 Commercial Gasification Systems * Outstanding SGT Performance * Strong Base For Growth + Industrial Growth Model Aluminum Corporation of Tianwo-SES China 7 SGT Eaupmen Gasifier esign an Systems — Z oa targa cai Manufacturing industrial Fuel Project 3 SGT Gas Systems (2+1) ZZ Syngas Project 2
Slide 9: Strategy for Combination of SES Technology and Financial Structuring
Strategy for the Combination Of SES Technology Capability And Financial Structuring For Equity Investments Investment assumptions : Capex: $100MM; Equity 30MM; - Debt $70M SES SPV Projected project IRR: 20%; 50% (PAT $1SMM/Year) Sale assumptions for each project: Sale of each project priced at P/E o
Slide 10: Multiple Revenue Channels
+ Multiple Revenue Channels + Technology License & Engineering + SGT Equipment Systems + SES Equity-Position Industrial Syngas Projects in Commercial Development + Multiple Products + Syngas — Industrial Fuels + Substitute Natural Gas (SNG) + IGAS Power Multiple Energy Growth Markets Natural Gas Rep
Slide 11: Total Available Market for all verticals
bes Total Available Market for all verticals is estimated by SES at over 10,000 Yima sized <S gasification systems worldwide INDUSTRIAL SYNGAS: SUBSTITUTE NATURAL GAS: GON TEECATERE AR GEE Clean and inexpensive Coal-fueled SNG has potential SES's reliable, and efficient iGAS power replacement for na
Slide 12: Tianwo-SES Clean Energy
Tianwo-SES Clean Energy Asian JV Partnership TIANWO-SES CLEAN ENERGY TECHNOLOGIES CO. Sino-Foreign Joint Venture between SES and Suzhou Thvow Technologies = leading Chinese process equipment manufacturer Ses 5652596 suchas thvow e596 @ Global Business Partners ® GE MipREX Regional Partners Strategic
Slide 13: Aluminum Corporation of China (CHALCO)
Aluminum Corporation of China ( (CHALCO): 3 industrial syngas supply sas plants using 7 SGT systems. Tlanwo-SES Ce! First Order ~ Award secured December 2014, Fasttrack, staged construction initiated March 2015 + SGT Economically Advantaged Clean Coal Natural Gas Replacement Projects + SGT Industria
Slide 14: SGT GELM-2500+G4 iGAS Power
SGT GELM-2500+G4 + Affordable Clean Power for the Developing World + SGT able to run low-cost, low-rank feedstocks + SGT ability to convert to biomass/MSW co-feed in future, hedge for future CO2 liability + Positive Project Economics when Power > 6 cents per kilowatt-hour + Initial iGAS Project:160M
Slide 15: SGT Superior Environmental Performance and Lower Cost for SNG
+ SGT Superior Environmental Performance and Lower Cost for Substitute Natural Gas + Clean Syngas for Conversion into Pipeline Natural Gas Coal-based syngas is converted to low cost natural gas SES Syngas is high in methane, reduces cost of methane conversion technology China Market Opportunity ¥ In
Slide 16: Growing Pipeline of Opportunities
ES china = USA India = Africa = Australia South America Other Asia SES Revenues ¥ Technology licensing, equipment and services ¥ SES equity-position industrial syngas projects in commercial development Power =SNG y¥ Proof of principal plant operations: "Ind. Fuel ZZ, Yima = DRE ‘= Chemicals ¥ Growth
Slide 17: iGAS Power - Industrial Fuel - SNG
: iGAS Power - Industrial Fuel - SNG nqas-Ins rial Fi SES ~ Work with Equity-Investment Partner, CESI, to Secure Minimum First Two of Four Identified Joint Clean Energy Projects. Form a development and investment Master Joint Venture company. Target to bring initial two projects through development
Slide 18: iGAS Power - Industrial Fuel - SNG: Global Pipeline
== = iGAS Power - Industrial Fuel - SNG Global Pipeline Secure and Launch New Business Pipeline Projects, many of which have already selected or have indicated a strong preference to use SGT — identified projects in U.S., South America, Africa, India and Australia Engage a Third-party Company to Ide
Slide 19: Appendix: Leadership, Partners, Outlook
+ Leadership + Management - Board of Directors + Partners & Collaborators + Includes Tianwo-SES Current Projects - Global Natural Gas/LNG: Long-term Asian Outlook - Global Coal Reserves APPENDIX
Slide 20: Management
bes =s DeLome Fair, President and Chief Executive Officer Appointed SES’s chief executive in February 2016. Joined the SES executive team as SVP, Gasification Technology in December 2014. 25 years’ gasification and IGCC technology expertise in energy and petrochemical industries, with GE and Chevron
Slide 21: John Winter, Ph.D., Chief Engineer
John Winter, Ph.D., Chief Engineer + 30-year petrochemical industry experience, including 15 years of gasification technology research, engineering design, tech services and gasification operations. Past senior positions include GE Energy, Texaco/ChevronTexaco, Allied Plastics and Dow Chemical Ph.D.
Slide 22: Board of Directors
bes HOrenza Lamadrid, Chairman Treva eetuce se Chat mano fa aeer ci ens OT erga ee LUC, a firm that specializes in the development of large scale energy, power generation, tratlsportation and infrastructure projects in China and provides business advisory services and investments with a particular f
Slide 23: Board of Directors (continued)
bes Harry Rubin + Chairman of Henmead Enterprises, with a particular focus on advising companies regarding strategy, acquisitions and divestitures. Broad executive and financial management background spans computer software, entertainment and consumer brand industries, with companies including GT In
Slide 24: SES Joint Project Partner: China State Investment Co., Ltd
+ SES Joint Project D & Partner: China State o., Ltd (CEST) (A) A) + State-owned enterprise established in Beiing under the China Ministry of Environmental Protection + Charged with, and funded to, develop and invest in the energy conservation and environmental protection industry + March 2016 agree
Slide 25: Aluminum Corporation of China (CHALCO)
Aluminum Corporation of China (CHALCO): china’s largest alumina and primary aluminum producer and the worlds second largest alumina producer 3 industrial syngas supply plants with 7 total SES Gasification Systems Secured by China JV Partner, Suzhou Thvow Technology Co., Ltd. (STT); total value order
Slide 26: SES Regional Marketing Partner: Simon India
= SE Reglonal Marketing artner: Simon/and|alE niece) oD) S ry) Engineering, procurement and construction (EPC) company Wholly owned subsidiary of Zuari Global Limited Zuari and SIL are member companies of the Adventz Group, a $3 billion Indian conglomerate ‘comprising 23 companies in various industr
Slide 27: SES iGAS Collaborator: GE Packaged Power
+ SESiGAS Collaborator: GE Packaged Power GE Packaged Power, Inc. is a Houston-based subsidiary of General Electric Company IGAS power units combine SGT and GE Aerod Power Gen Sets: Lm2500+64 ‘92s turbines + SES Exclusive Global Direct Reduced Iron (DRI) Steel Partner: Midrex Technologies, Inc. Zz)
Slide 28: Long term natural gas/LNG price outlook in Asia supports coal
= 5 Long term natural gas/LNG price outlook in Asia supports coal Gasnelboninoid decoprent Economist Intelligence Unit: Natural gas (USs/mBtu)"”) . . + SGTs ability to use virtually all grades of coal, including abundant wy 60s ss lignite and coal wastes, bring additional economic advantages, press
Slide 29: World Coal Reserves
World Coal Reserves + More than 50% of recoverable Total: 892.5 Billion Tonnes global coal resources are untapped Technology sub-btuminousand close-to. Moisture Content surface lignite brown) coal wie Bituminous & Anthracite: 403.2 Sub-bituminous & Lignite: 488.3 + Renewable biomass and municipal es
Slide 30: Synthesis Energy Systems - Investor Relations
Synthesis Energy Systems, Inc. GROWTH WITH BLUE SKIES Investor Relations: MDC GROUP Contact: David Castaneda (414) 351-9758 | IR@synthesisenergy.com
Synthesis Energy Systems — Investor Presentation (April 2016) on 6ix