Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (December 2017)
36 slides from Synthesis Energy Systems's investor presentation, Dec 20, 2017
Slide 1: Corporate Presentation December 2017
Synthesis Energy Systems, Inc. Corporate Presentation December 2017 Clean | Economic | Sustainable Global Energy Growth With Blue Skies
Slide 2: Disclaimers
Disclaimers This presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . All statements other than statements of historical fact are forward - looking st
Slide 3: Overview
Overview 3 • SES is a clean energy company, founded in 2004 and publicly traded on NASDAQ since 2007 • We own proprietary technology for low cost, environmentally responsible generation of synthesis gas • Our synthesis gas is used for production of a wide variety of high - value clean energy and che
Slide 4: Business Model
Business Model Value growth through generation of earnings from SES technology licensing and proprietary equipment sales combined with income from equity ownership in clean energy and chemical production facilities. Our target markets are regions of the world, such as Australia and Poland, with high
Slide 5: Strategy
Strategy 5 • Provide a financially attractive, lower - cost synthesis gas for the production of clean energy and chemicals • Leverage our technology to establish partnerships as business growth platforms in key global regions, where markets have limited access to affordable natural gas and abundant
Slide 6: Key Accomplishments
Key Accomplishments 6 • Successfully commercialized technology from pilot - scale to current commercial scale • Completed 5 projects over 10 years utilizing 12 SES Gasification Technology (SGT) systems • Developed, owned and operated first commercial plant, proving robust commercial performance of S
Slide 7: Batchfire Resources, Australian Future Energy and SES EnCoal Energy Assets
Batchfire Resources Australian Future Energy Assets 7 • SES ~39% and Ambre Investments ~45%, a privately held company • Acquired 270 MM ton Pentland coal resource (1) • Industrial fuel gas, power and fertilizer projects under review • Signed first SGT License Agreement with SES, May 2017 ©2017 Synth
Slide 8: Yima Joint Venture and Tianwo-SES Clean Energy Technologies Assets
Yima Joint Venture Tianwo - SES Clean Energy Technologies Assets 8 • SES 25%, Suzhou THVOW Technology Company 50%, and Innovative Coal Chemical Design Institute 25%. Shanghai, China • Granted regional sub - licensing rights to SES technology • Completed 3 projects for Aluminum Corporation of China (
Slide 9: Value Proposition
Value Proposition 9 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved • Lowest cost syngas • Lowest cost feedstocks • Coal, coal wastes and solid renewable materials • Lower CO 2 footprint with renewable co - feeding Cost Advantage of SES Technology Notes and Assumptions: (1) NG from LNG ran
Slide 10: Proven Technology Used in Commercial Operating Plants
Proven Technology Used in Commercial Operating Plants 10 • Outstanding performance • Proven track record • Strong base for growth • Industrial growth model SES project name Zao Zhuang Yima Chalco Shandong Chalco Shanxi Chalco Henan Year commissioned 2008 2012 2015 2016 2016 # of gasifiers 2 3 2 1 4
Slide 11: SGT: Greener Solution
SGT: Greener Solution A New Paradigm for Responsible Coal Minimal air pollutants (coal reaction vs burning) • SO x , No x and Particulate Matter near natural gas levels • Lower cost of electricity than natural gas in many parts of the world Reduced water consumption • 30% less water consumption than
Slide 12: Positioned for Growth
Positioned for Growth 12 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Notes: (1) Estimate of market cap based on multiple of EBITDA and other income, assumes successful implementation of business plan, (2) Number of projects needed for success depends on the specific value of the succes
Slide 13: Our Australian Platform Company In More Detail
Our Australian Platform Company In More Detail 13
Slide 14: Focus: The Australian Opportunity for SES
Focus: The Australian Opportunity for SES Australia is at a tipping point with pressing domestic energy demand vs. export revenues • Increasing demand for reliable energy Australia wide and particularly on the east - coast grid • Increasing market prices for gas and base load power • Increased deman
Slide 15: AFE vertically integrated energy generation company
AFE is a vertically integrated energy generation company, using world - class gasification technology AFE’s core business model is based upon: • Providing baseload energy solutions to large industrial users and markets requiring a secure energy supply • Ownership or long - term commercial offtake co
Slide 16: AFE Focus and Accomplishments
AFE Focus and Accomplishments Large pipeline of projects under evaluation • Projects to be environmentally “class leading” with low carbon dioxide syngas production • Multiple locations, multiple energy and agrichemical end products • Low - cost production from low - cost coals from AFE resources an
Slide 17: Batchfire Resources: An AFE Success Story
Batchfire Resources: An AFE Success Story • Founded in 2016 as spinoff from AFE • AFE shareholders currently own approximately 52% of Batchfire • Acquired Callide Thermal Coal Mine, Central Queensland, operations October 2016 • ~230MM tons reserves; ~850MM tons resource • Significant progress since
Slide 18: Our Poland Platform Company In More Detail
Our Poland Platform Company In More Detail 18
Slide 19: Poland Market
Poland Market 19 • Poland currently relies on its abundant coal reserves for over 80% of its electricity generation • Local economies are heavily coal - based, with broad government support for the development of cleaner coal technologies • Natural gas prices from Russia are volatile, and Poland see
Slide 20: Business Model
Business Model 20 • Advancing the low - carbon coal conversion capability of SES technology via blended coal/biomass resource utilization, and facilitate the licensing of this capability to other parties in Poland • Providing a compelling clean energy alternative to Poland’s power and industrial mar
Slide 21: SES EnCoal Energy Focus
SES EnCoal Energy Focus Grow the pipeline of projects • Prior to JV formation, three years of market collaboration have resulted in a pipeline of potential projects • Major state industrial companies seeking alternative for lower fuel costs » State power generators seeking cleaner coal solutions and
Slide 22: Why SES Now
Why SES Now 22 Superior and proven clean energy technology » 5 projects built, with 12 SGT Systems; >$700MM total invested over 40 years (1) » Commercialized, economical & environmentally responsible clean energy solution Three - tier value growth business model » SGT licensing revenues » Proprietar
Slide 23: Our Leadership Team
Our Leadership Team 23
Slide 24: Leadership: Management
Leadership: Management 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 Fr
Slide 25: Leadership: Board of Directors
Leadership: Board of Directors Lorenzo Lamadrid , Chairman • Ten - year tenure as Chairman of SES. Since 2001, Managing Director of Globe Development Group Robert W. Rigdon , Vice Chairman • Served as President and CEO from 2009 until February 2016, with an eight - year tenure with SES Harry Rubin,
Slide 26: AFE Directors
AFE Directors Edek Choros, Executive Director • Geologist with over 25 years of professional experience in coal exploration, mine design, mine planning and management, with a focus on turnaround operations for numerous coal mines in Australia and the USA • Founder, CEO and MD of Millennium Coal Pty
Slide 27: AFE Directors
AFE Directors 27 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved
Slide 28: Our Technology In More Detail
Our Technology In More Detail 28
Slide 29: SES Gasification Technology (SGT)
CO 2 Low Grade Coal Biomass Syngas Processing Synthesis Gas (Syngas) (CO+ H 2 ) SULFUR Ash iGAS Power Low Value Feedstock SES Gasification Processing $3 - 6 per MMBTU Cost of Syngas (1) High Value End Products MSW Industrial Fuels Chemicals & Fertilizers SNG DRI for Steel Production Diesel & Naphtha
Slide 30: SGT: The Road to Commercialization
• Proven commercial technology » ~$200MM R&D: Gas Technology Institute (GTI) » ~$200MM Commercialization & Investment: SES » >$300MM Investment and Debt: Chinese Partners & Customers • Twelve commercial - scale gasification systems built over the past 10 years • Technology license for first AFE proj
Slide 31: SGT is the Superior Gasification Technology
Best Performance Moderate Performance Worst Performance SGT is the Superior Gasification Technology Slag Non-slag Dry Feed Slurry Feed Cost Factors Capital Cost Low Capital Cost Operating Cost Lowest Operating Cost Performance Factors Carbon Conversion Best in class Cold Gas Efficiency Best in class
Slide 32: SES Project History
32 Project Year Gasifier Systems Product Syngas Capacity (nm3/hr) Syngas Energy per year Cost SES Role Zao Zhuang (ZZ) 2007 - 2014 2 Syngas 20,000 2.3 PJ $40MM (1) 100% Equity, Technology & Equipment Yima 2012 - present 3 Methanol 90,000 10.6 PJ $250MM (1) 25% Equity, Technology & Equipment CHALCO S
Slide 33: Appendix
Appendix • Operating Structure • World Coal Reserves 33
Slide 34: Operating Structure
Operating Structure Licensing Proprietary Equipment Sales Technology Engineering & Services O&M for SES Projects SES Technologies SES Capital Development Packaged Products SES Asset Management Financing & Capital Management Project Investment Holdings Project Development & EPCM • SGT Licensing & Equ
Slide 35: World Coal Reserves
USA Total: 251.6 Bituminous & Anthracite: 221.4 Sub - bituminous & Lignite: 30.2 Africa Total: 13.2 Bit & Anthracite: 13.2 Sub - bituminous & Lignite: 0.07 India Total: 94.8 Bit & Anthracite (high ash): 89.8 Sub - bituminous & Lignite: 5.0 Australia Total: 144.8 Bit & Anthracite: 68.3 Sub - bitumino
Slide 36: Growth With Blue Skies: Investor Relations
Nasdaq: SES synthesisenergy.com Growth With Blue Skies Investor Relations: MDC GROUP Contact: David Castaneda, (414) 351 - 9758 IR@synthesisenergy.com
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