Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (September 2011)
18 slides from Synthesis Energy Systems's investor presentation, Sep 12, 2011
Slide 1: Forward-Looking Statements
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 Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-look
Slide 2: About SES
Headquarters - Houston, Texas Asia Business & Engineering Center - Shanghai, China Highly experienced and global team Clean technology platform unlocks value low quality coals & biomass Well positioned for long term sustainable growth About SES Creating value through safely applying our clean, effic
Slide 3: Investment Highlights
Investment Highlights Established operations, significant momentum on global scale 1st operating project 3.5 years in China 2nd China project nearing completion Pure play clean energy gasification business for low rank coal and biomass Unique value creative business model, technology and capability
Slide 4: Our Technology Platform - U-GAS
U-GAS(r) is a unique, proven gasification technology process that addresses the challenges of creating energy from low cost, low quality coal and biomass feed-stocks Our Technology Platform - U-GAS(r) Syngas Originated in U.S. at Gas Technology Institute ("GTI") Perfected over a thirty-five year per
Slide 5: What We Do - Create Valuable Clean Energy Products from Low Cost Coals
What We Do - Create Valuable Clean Energy Products from Low Cost, Low Quality Coals Coal...a critical natural resource to meet the world's energy needs Found in almost every country; typically lowest cost fossil fuel ~50% of total recoverable global reserves are low quality sub-bituminous and lignit
Slide 6: Multiple Paths To Value Creation
Multiple Paths To Value Creation Greenhouse Gas Capture Capable - CO2 Low Value Feedstocks High Value End Products Gasoline blending Syngas to gasoline Diesel - DME & FT liquids LPG - DME blending Synthetic natural gas (SNG) Fuel Gas IGCC Fuel cells Methanol Hydrogen Olefins Acetic Acid Glycol Low q
Slide 7: Synthetic Natural Gas (SNG) A Growth Opportunity
Synthetic Natural Gas (SNG) A Growth Opportunity Assumptions Representative 4 billion ncm/yr SNG project in China Low rank coal feedstock: coal price net of VAT (Rmb85/mt ($16/mt ton) City gate gas price region Xinjiang/Gansu/Inner Mongolia Total project capital cost: ~$2.3bn. Asia Synthetic Natural
Slide 8: Attractive Economics with Low Quality Coal
Attractive Economics with Low Quality Coal Production Capacity(tons or ncm) End Product Gross Selling Price Projected Annual Revenues(millions) Projected Annual EBITDA (millions) SNG 4B ncm/a total project1.3 B ncm/a phases ~$9 - $13/mmbtu ~$1575 Project~$525 per phase ~$1150 Project~$375 per phase
Slide 9: Multiple Paths to Growth and Profitability
Multiple Paths to Growth and Profitability SES Advanced Gasification Technology Three Pronged Global Growth Strategy Technology, Equipment Supply & Services - Rapid U-GAS(r) Commercialization Grow installed base Near term earnings Project Investments - Equity Carries & Options Selective Investments
Slide 10: Licensing - Sustained revenue generator
Licensing - Sustained revenue generator Technology royalty is typically a one time fee collected across project design, construction & startup Typical project cycle...24 to 48 months Typical transaction range $3MM to $30MM+ (based on syngas capacity)1 Specialized Equipment & Technical Services - Pre
Slide 11: Project Investments
Project Investments Value creation through investment in U-Gas projects Joint venture partnerships Direct equity investments & carried interests Multiple energy and chemical market segments Syngas plants, SNG, integrated methanol/glycol facilities, fertilizer businesses, etc Build Own Operate ("BOO"
Slide 12: Integrating Coal Resources
Integrating Coal Resources Vertically integrates and/or links under utilized, low quality coal resources to SES projects globally SES' U-GAS(r) technology facilitates monetization of low commercial value "stranded" coals that are otherwise difficult or impossible to commercialize Secures long-term l
Slide 13: Implementing Strategy through Regional Growth Platforms
Implementing Strategy through Regional Growth Platforms Strategic partnering key to SES global growth Find well capitalized partners that bring financial strength to table Have ability to facilitate and capture new business Facilitate completion of local approvals for projects Experience with region
Slide 14: Building Momentum
Building Momentum Yima/ZJX Investment (China) $84 million investment into SES (Pending) Collaboration leverages position in China Facilitates multiple development opportunities Zuari Investment (India) Initial $5 million investment into Company Establishes key position in new, high growth, high dema
Slide 15: Existing Operations and Investments
Zao Zhuang (ZZ) - Shandong Province (operating 3.5 years) JV with Shandong Hai Hua Coal & Chemical Co. Ltd (96% SES / 4% HH) Proven U-GAS(r) performance with successful commercial operation Proven feedstock flexibility with wide range of coal and coal wastes processed High syngas availability...over
Slide 16: Financial Highlights
17 Financial Highlights ($000's) Financial performance Nine Months Ended March 31, 2011 2010 Revenues $ 7.6 $ 7.5 Operating loss: ZZ Joint Venture plant (1.3) (2.7) Technology licensing & related (1.1) (3.0) Consolidated (11.0) (14.6)* Sufficient capital resources $29 MM cash as of March 31, 2011 $5
Slide 17: Investment Summary - Compelling Growth Story, Building Value
Investment Summary - Compelling Growth Story, Building Value Uniquely and competitively positioned in low cost feedstock, becoming more so on global basis Leader in global gasification technology; commercializing technology in high demand, high growth markets, our only business Building significant
Slide 18: Experienced Management Team
Experienced Management Team Robert W. Rigdon - President & CEO 30 years industry experience in manufacturing, engineering and technology with 15 years in gasification technology, project development and business development at ChevronTexaco and GE Francis Lau - SVP, Chief Technology Officer Renowned
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