Aeris Environmental Ltd · ASX:AEI
Aeris Environmental — Aeris Technologies — Investor Presentation (July 2007)
37 slides from Aeris Environmental's investor presentation, Jul 25, 2007
Slide 1: Healthy Buildings, Healthy Planet
Aeris Technologies For personal use only Healthy Buildings…………Healthy Planet Aeris Technologies Limited (AEI) Maurie Stang, Chairman Huw Jones, CEO www.aeris.com.au Aeris Technologies Ltd Page 1
Slide 2: Vision
Aeris Technologies For personal use only Vision Leading global environmental technology and services corporation to provide customers significant energy reduction and productivity benefits www.aeris.com.au Aeris Technologies Ltd Page 2
Slide 3: Customers need AerisGuard
Aeris Technologies For personal use only Customers need AerisGuard ► 10% energy saving(1) for Fortune 500 corporation ► Significant productivity and OH&S benefits for BHP Billiton mine ► Food safety improvement for national food processor (1) Based on 18 months AerisGuard trials with customer www.ae
Slide 4: Key market drivers
Aeris Technologies For personal use only Key market drivers “Our challenge is clear – we must use technology to reduce the demand for energy” US National Energy Policy Group, 2001 Protect the Improve Stricter Reduce Protect the quality of our system international energy quality of the limited water
Slide 5: Attractive business model
Aeris Technologies For personal use only Attractive business model ● Annuity revenue stream generated from direct and indirect environmental service contracts with large corporations ● Strong brand, unique technology and service capability ● Global and significant unmet customer need ● Customer bene
Slide 6: The environmental issue
Aeris Technologies For personal use only The environmental issue “Microbial biofilms on surfaces cost [USA] billions of dollars yearly in equipment damage, product contamination and energy losses” Centre of Biofilm Engineering, Montana, USA ► Bacteria and mould thrive in moist environments ► Bacteri
Slide 7: Universal problem: air-conditioning system
Aeris Technologies For personal use only Universal problem System Efficiency Energy Consumption Asset Life Operating costs Air Quality Food & Worker Safety Air-Conditioning System Food Shelf Life www.aeris.com.au Aeris Technologies Ltd Page 7
Slide 8: Universal problem: bulk water system
Aeris Technologies For personal use only Universal problem System Efficiency Energy Consumption Asset Life Operating costs Air Quality Food & Worker Safety Bulk Water System Food Shelf Life www.aeris.com.au Aeris Technologies Ltd Page 8
Slide 9: Universal problem: cold storage facility
Aeris Technologies For personal use only Universal problem System Efficiency Energy Consumption Asset Life Operating costs Air Quality Food & Worker Safety Cold Storage Facility Food Shelf Life www.aeris.com.au Aeris Technologies Ltd Page 9
Slide 10: Guard value proposition
Aeris Technologies For personal use only AerisGuard value proposition AerisGuard removes and controls environmental contamination in a corporation’s central air, water and refrigerated storage systems Energy Reduction Enhanced Improved Improved food safety human system and shelf-life health control
Slide 11: Guard patented technology
Aeris Technologies For personal use only AerisGuard patented technology Remediate + Protect Novel multi- Long-term Annuity enzyme biofilm removal anti-microbial polymer = solutions coatings Income Removal Removalof ofbacteria bacteriaand andmould 12 mould 12month monthanti-microbial anti-microbial (
Slide 12: Strong strategic position
Aeris Technologies For personal use only Strong strategic position Regulatory Approval in Key Markets USA, Japan, SE Asia, Australia Major Customer Validation BHP, Merck, Marriott, Wyeth, Pall Independent Technical Validation US EPA, CSIRO Energy Study, UNSW Distribution Agreements in Asia with Stro
Slide 13: Milestones last months
Aeris Technologies For personal use only Milestones last 12 months Sep-06 Trane expands Aeris distribution across Asia-Pacific Oct-06 2 year distribution agreement with Sumitomo 3M in Japan Mar-07 12 month service contract with BHP Billiton mine to control bio-fouling in large underground water syst
Slide 14: Financial summary
Aeris Technologies For personal use only Financial summary Revenue 6 months to Dec-06 $503,000 Cash at bank 31-Mar-07 $3.5 million Debt 31-Mar-07 Zero Ordinary shares on issue 87.5 million Share price 24-July-07 $0.505 Market cap 23-July-07 $44 million www.aeris.com.au Aeris Technologies Ltd Page 14
Slide 15: Core environmental markets
Aeris Technologies For personal use only Core environmental markets Energy and air Food cold Water treatment assurance storage Long term Long term Biofilm environmental environmental remediation protection of protection of in large water air-conditioning refrigeration systems systems systems Biofilm
Slide 16: Energy and air assurance
Aeris Technologies For personal use only Energy and air assurance Energy and Air AerisGuard Remediation and control of Assurance Application environmental contamination in corporation’s central air system Target market Pharmaceutical, large retail, segments hospitality, electronic manufacturing, hea
Slide 17: Energy and air assurance: successes
Aeris Technologies For personal use only Energy and air assurance Successes ● Sumitomo 3M signed 2-year distribution agreement for Japan (3rd largest air-con market in world) in Oct-06 ● Trane (US$6.8bn leading global air-conditioning manufacturer and service provider) ► Distribution contract in pla
Slide 18: Energy and air assurance: Aeris USA
Aeris Technologies For personal use only Energy and air assurance Aeris USA ● Migration to direct service model Aeris Atlantic Clients ● Acquisition of environmental services company DuPont ► Acquired 60% of environmental division of Advanced Air Wyeth Filtration Inc in May 07 Trump Casinos ► Provid
Slide 19: Global energy success
Aeris Technologies For personal use only Energy and air assurance Global energy success ● Fortune 500 global pharmaceutical manufacturer Current Energy Reduction ► 41 facilities in 17 countries Prospects ► Global initiative to reduce energy by 25% within 3 years Verizon ► Air-con represents 65% of c
Slide 20: Food cold storage
Aeris Technologies For personal use only Food cold storage Food Cold Storage AerisGuard Remediation and control of Application environmental contamination in cold storage refrigeration system Target segments Food cold storage supply chain Key Regions Australia, USA Size of Australia : $180 million p
Slide 21: Gross microbial contamination
Aeris Technologies For personal use only Food Cold Storage Gross microbial contamination www.aeris.com.au Aeris Technologies Ltd Page 21
Slide 22: Microbial contamination
Aeris Technologies For personal use only Microbial contamination www.aeris.com.au Aeris Technologies Ltd Page 22
Slide 23: The AerisGuard value
Aeris Technologies For personal use only Food Cold Storage The AerisGuard value Before After www.aeris.com.au Aeris Technologies Ltd Page 23
Slide 24: Cool room performance solutions
Aeris Technologies For personal use only Food Cold Storage Cool room performance solutions ● Established direct service business (Aeris Hygiene Services) in Australia in June 2006 ● Primary objective of first 12 months to create the “franchise manual” for this new global market opportunity ● Focus o
Slide 25: Prospects
Aeris Technologies For personal use only Food Cold Storage Prospects Aeris Hygiene Services currently # Outlets have contracts, are trialing or in Red Rooster 360 Oporto 100 negotiations with corporations Hungry Jacks 310 with a total opportunity value of Quick Service Subway 1008 Restaurants McDona
Slide 26: CSIRO efficiency & energy study
Aeris Technologies For personal use only Food Cold Storage CSIRO efficiency & energy study Food Science Australia (CSIRO) study on impact of AerisGuard on Cold Storage Refrigeration Systems ► Potential reduction in CO2 greenhouse gas emissions by 74,500 tonnes per year in Australia = planting 20,300
Slide 27: International roll-out
Aeris Technologies For personal use only Food Cold Storage International roll-out Target markets (based on food hygiene standards) ► Australia (Aeris Hygiene Services Pty Ltd) ► USA o market entry planned first half calendar 2008 o formal market validation complete o identifying suitable JV partner
Slide 28: Water treatment
Aeris Technologies For personal use only Water treatment Water Treatment AerisGuard Remediation and control of biofilm Application in bulk water systems Target market Mining, Reverse Osmosis (RO) segments Membranes (desalination and groundwater treatment facilities) Total size of Product sales: $750
Slide 29: Water treatment: Mining
Aeris Technologies For personal use only Water Treatment Mining ● 12 month service contract with BHP Billiton mine in Australia commenced Mar-07 ● $180,000 contract (4 days on site per year) ● Overnight improvement in mine productivity ► AerisGuard Multi-Enzyme Biofilm Removal solution reduced filte
Slide 30: Reverse osmosis membranes
Aeris Technologies For personal use only Water Treatment Reverse osmosis membranes ● Remove impurities and particles larger than 0.001 microns. ● Extensively used ► desalination plants ► water and waste water treatment ► drinking water purification ► food industry ● RO’s cost upwards of $250,000 eac
Slide 31: Reverse osmosis membranes: target markets
Aeris Technologies For personal use only Water Treatment Reverse osmosis membranes ● Initial target markets ► Water treatment and recycling ► Desalination ● Target geographies ► Australia ► Middle East (60% of world’s 12,500 desalination plants) ● Working with PALL Corporation (worlds largest filter
Slide 32: Summary
Aeris Technologies For personal use only Summary ► AerisGuard technology is robust, protected and valued by customer ► Global environmental services market high-profile and growing rapidly ► Three key business targeting global mega-trends: Energy reduction: Food safety: Water conservation and qualit
Slide 33: Management team
Aeris Technologies For personal use only Management team Huw Jones – Chief Executive Officer ► Former MD of Datex Ohmeda (now GE Healthcare) Australasia Ron Bacskai – Exec VP Aeris Technologies LLC ► Former CEO of $100M mechanical contracting corporation in USA Rob McLean – Global Sales Manager ► Se
Slide 34: Outlook next 12-18 months
Aeris Technologies For personal use only Outlook next 12-18 months ► Strong revenue growth from USA air-conditioning business unit (incl. Aeris Atlantic LLC) ► Material revenues generated from energy saving supply agreement with Fortune 500 corporation ► Expansion of relationship & revenue with Tran
Slide 35: Healthy Buildings, Healthy Planet
Aeris Technologies For personal use only Healthy Buildings… Healthy Planet www.aeris.com.au Aeris Technologies Ltd Page 35
Slide 36: Appendix
Aeris Technologies For personal use only Appendix www.aeris.com.au Aeris Technologies Ltd Page 36
Slide 37: Research & Development
Aeris Technologies For personal use only Research & Development Biofilm resistant polymers ► Collaboration with CSIRO ► Biofilm resistant polymers which can be injection moulded and extruded ► Strong patent position ► Multiple potential applications in water systems and cold storage ► Licensing oppo
Aeris Technologies — Investor Presentation (July 2007) on 6ix