Scandinavian Enviro Systems Ab · OMXSTO:SES
Scandinavian Enviro Systems Ab — Investor Presentation (March 2021)
26 slides from Scandinavian Enviro Systems Ab's investor presentation, Mar 2, 2021
Slide 1: Shareholder presentation
We deliver sustainability for Carbon Black, Oil & Carbon fibre Taking a leading position in global industries with a game changing technology that... • solves global waste problems, • slashes CO2 emissions, • provides solution to global industries on recycling ...and generates better profitability t
Slide 2: Disclaimer
Technology Strategy The Agreement Expansion Financials The SES share Appendix Disclaimer In addition to historical information, this presentation includes forward-looking statements. Examples of forward-looking statements include statements made about strategy, expansion and market expectations, as
Slide 3: Enviro has developed a highly profitable technology that converts waste into valuable resources
Technology Strategy The Agreement Expansion Financials The SES share Appendix Enviro has developed a highly profitable technology that converts waste into valuable resources • The technology is based on Pyrolysis CFC* study • Patented Swedish technology valid until 2027-35 in various continents • In
Slide 4: Enviro's initial focus is End of Life Tires (ELT)
Technology Strategy The Agreement Expansion Financials The SES share Appendix Enviro´s initial focus is End of Life Tires (ELT) Technology Waste stream Products, Sellable volume Validated % / ton % / value ● 2020 - Michelin largest ELT Base case High case shareholder in Enviro with 20% - Value JDA -
Slide 5: A phased approach in three steps with a long term strategic plan built on partnerships
Technology Strategy The Agreement Expansion Financials The SES share Appendix A phased approached in three steps with a long term strategic plan built on partnerships Enviro’s strategic growth plan Split by phase and initiative Industrialise other waste streams C) Industrialise other waste streams E
Slide 6: Meaningful misalignment between the largest CB consumers and their largest suppliers on CO2 strategy
Technology Strategy The Agreement Expansion Financials The SES share Appendix Meaningful misalignment between the largest CB consumers and their largest suppliers on Co2 strategy Focus on recycled materials Focus on operational efficiency ”Ambition 2050: Tires will be made using 100% sustainable mat
Slide 7: Increased interest from global Tire companies
Technology Strategy The Agreement Expansion Financials The SES share Appendix Increased interest from global Tire companies • Tire companies account for Tire manufacturers 74% of carbon black consumption – a consolidated market (tot value 23 bUSD) Market value of the Tire market: 170 bUSD • Discussi
Slide 8: The partnership with Michelin includes 4 core initiatives to build our strategic foundation
Technology Strategy The Agreement Expansion Financials The SES share Appendix The partnership with Michelin includes 3 of 4 core initiatives to build our strategic foundation Technology ELT Markets Strategy Financials The SES share Appendix A phased approached in three steps with a long term strateg
Slide 9: Michelin - our new strategic partner
Technology Strategy The Agreement Expansion Financials The SES share Appendix Michelin - our new strategic partner Michelin, 2020 First-Half Financial report: Sustainable materials: • Michelin has embarked on a huge challenge to make every tire component sustainable, by ensuring that by 2050, 80% of
Slide 10: Sustainability will be the strategy for all companies over time – Next strategic step
Technology Strategy The Agreement Expansion Financials The SES share Appendix Sustainability will be the strategy for all companies over time – Next strategic step TPO & Expansion October December May June April - Feb 2018 2018 2019 2019 2020 - 2021 • Changed • Secure • Recovered Carbon • Enviro has
Slide 11: Strategic milestones 2020-2021
Technology Strategy The Agreement Expansion Financials The SES share Appendix Strategic milestones 2020-2021 study Product Key milestones Validated technology & partnership to develop products and markets rCB ✓April 2020 Michelin investment in Enviro and LOI ✓Feb 2021 Michelin final agreements Impro
Slide 12: Signed definitive agreements on Michelin's and Enviro's strategic partnership
Technology Strategy The Agreement Expansion Financials The SES share Appendix Feb 8th, 2021 - Signed definitive agreements on Michelin´s and Enviro´s strategic partnership study • Shareholder agreement concerning a joint venture the purpose of which is to establish a jointly owned recycling plant in
Slide 13: Demand for rapid transformation to sustainability from leading investors forces global industries to act
Technology Strategy The Agreement Expansion Financials The SES share Appendix Demand for rapid transformation to sustainability from leading investors forces global industries to act Larry Fink is the founder & CEO of Blackrock, the worlds largest investor with 8 700 Bn USD under management DI 2020-
Slide 14: Pyrolysis is a technology of the future that handles the increased demands for recovered material
Technology Strategy The Agreement Expansion Financials The SES share Appendix Pyrolysis is a technology of the future that handles the increased demands for recovered material Alternative recovery methods for end-of-life tires • The evolution of ELT recovery started with energy recovery taking over
Slide 15: Sample of key industrial events during last 12 months shows a rapid industrial transformation
Technology Strategy The Agreement Expansion Financials The SES share Appendix Sample of key industrial events during last 12 months shows a rapid industrial transformation • BASF started its ChemCycling project in 2018 with the aim to process recycled raw materials obtained from plastic waste • BASF
Slide 16: Enviro and Delta-Energy are leading the development in the rCB industry
Technology Strategy The Agreement Expansion Financials The SES share Appendix Enviro and Delta-Energy are leading the development in the rCB industry through new and deepened partnerships with leading global tire manufacturers initiated over the past year Active strategic partnerships/business deals
Slide 17: Potential demand for rCB well beyond realistic capacity build out
Technology Strategy The Agreement Expansion Financials The SES share Appendix Potential demand for rCB well beyond realistic capacity build out - Success will depend on execution Theoretical maximum rCB market potential by ELT supply Market, tons Demand CB Supply ELT Conversion potential supply No o
Slide 18: Our goals for establishing a 10 year expansion plan
Technology Strategy The Agreement Expansion Financials The SES share Appendix Our goals for establishing a 10 year expansion plan with a potential of 4 new plant/year • Build our 1:st full scale plant with Michelin starting in 2021. Based on Michelin market share they consume approximately 2 m ton C
Slide 19: Pre Corona prices increased faster than the oil price
Technology Strategy The Agreement Expansion Financials The SES share Appendix Pre Corona prices increased faster than the oil price due to increased demand and environmental compliance EU prices for carbon black N550 Jan 2016 - Feb 2021 €/ton $/ton 1400 90 1200 80 CB N550 € 1015 70 1000 60 $ 62,26 8
Slide 20: Financials
Technology Strategy The Agreement Expansion Financials The SES share Appendix Financials Illustrative example of a 30 000 ton ELT plant in Europe Design of a modular Enviro plant Assumptions: Base & Full Pot. Recovery Excluding Market Share of rate from own values /ton market • Base case: Recovered
Slide 21: The return on investment on a plant from Enviro has favourable economics
Technology Strategy The Agreement Expansion Financials The SES share Appendix The return on investment on a plant from Enviro has favourable economics. Base Case with estimated payback period of 3,8 years and EBITDA margin of 58% & Full Potential payback of 2,1 years and margin of 72% • Our aim is t
Slide 22: The SES share
Technology Strategy The Agreement Expansion Financials The SES share Appendix The SES share • The SES share is traded at Nasdaq First North Growth Market since 2014 SES share price and trading volume 2020-04 – 2021-02 Share price Volume • Market Cap: 1 300 MSEK 3,5 60 000 000 • Number of shareholder
Slide 23: Summary
Technology Strategy The Agreement Expansion Financials The SES share Summary Summary • Enviro´s journey is just beginning • Reduces Co2 with >80% based on a patented Swedish technology that recovers carbon black from end of life tires • The 22bUSD CB market presents a meaningful opportunity, one tha
Slide 24: Appendix
Appendix
Slide 25: Organisation - Management Team
Technology Strategy Agreement Expansion Financials The SES share Appendix Organisation - [1/2] Management Team study Thomas Sörensson Urban Folcker Maria Tiger Olov Ershag Fredrik Olofsson CEO CFO Senior Project Manager COO Sales Manager Previous experience include: • Managing Director, B&B Tools •
Slide 26: Organisation - Board Members
Technology Strategy Agreement Expansion Financials The SES share Appendix Organisation - [2/2] Board Members study Alf Blomqvist Jan Bruzelius Nina Peter Möller Björn Olausson Sander Stefan Tilk Macpherson Vermeulen Chairman Board member Board member Board member Board member Board member Board memb
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