Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Roth Capital Partners 20th Annual Growth Stock Conference (February 2008)
21 slides from Synthesis Energy Systems's conference presentation, Feb 15, 2008
Slide 1: Cleanly Unlocking the Value of Coal
n—T— J SWNEHES TS ENERGY SYSiEM:S Timothy E. Vail President & CEO Roth Capital Partners 20th Annual OC Growth Stock Conference Dana Point, CA February 21, 2008 Cleanly Unlocking the Value of Coal
Slide 2: 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 (the “Securities Act”), and Section 218 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), All statements, other than
Slide 3: SES — A Global Industrial Gasification Company
SES — A Global Industrial Gasification Company Our business is to build, own and operate gasification plants in China, the U.S. and ultimately worldwide: > Exclusive global rights to proven and advantageous U-GAS® technology > Demonstrated ability to implement unique technology with first project co
Slide 4: Overview of the Gasification Process
Overview of the Gasification Process Gasification is a proven process that converts solid hydrocarbon fuels into synthetic gas (“syngas”), which can be used to produce valuable chemical and motor fuel products. Produces useful chemical byproducts (O,, N, and steam) Gasifier Limits production of harm
Slide 5: Coal vs. Natural Gas: A Margin Opportunity
Coal vs. Natural Gas: A Margin Opportunity The increased spread between natural gas and coal prices provides a significant global opportunity for gasification. 125 Price History 1998 - 2007 Zc % Zz Zz z % % 9, Gy ty YO YD Q % % % DG % Go & & &® & &@ — Natural Gas — Appalachian Coal Source: U.S. Depa
Slide 6: Feedstock Costs
Feedstock Costs rN Natural Gas $6-$9/MMBtu Coal = ‘$0.50-$2/MMBtu oy of S| oer Methanol Plant Product Revenue Methanol $300-$800/ton A key component in plastics. silicon, paint, etc.
Slide 7: Substituting low cost coal for natural gas would save $0.8 billion
Substituting low cost coal for natural gas would save $0.8 billion in feedstock costs over the 20-year plant life Product Revenue Feedstock Costs Cost Methanol Differential = $1.3 Billion component in plastics, silicon, paint, etc. | eet S Methanol Plant Assumptions: oat Ti aldol] Natural Gas Price:
Slide 8: U-GAS was developed by the Gas Technology Institute
__U-GAS® was developed by the Gas Technology Institute corr) | GE, Shell, Siemens, ConocoPhillips Entrained Flow U-GAS® Fluidized Bed Lurgi Moving or Fixed Bed | Gas Fuel Type ge of 1 gasify a wide re zg Is, including low-rank and waste coals Operational Lower temperature process reduces Costs i mai
Slide 9: Variety of Feedstocks Successfully Gasified in U-GAS
Variety of Feedstocks Successfully Gasified in U-GAS Bituminous Coals ‘Western Kentucky No. 9, washed & ROM ‘Western Kentucky No. 9 and 11, Camp Illinois No. 6, Peabody No. 10 and Crown III Pittsburgh No. 8, Champion and Ireland Australian, Bayswater No. 2, Sydney Basin Polish, Silesia French, Merle
Slide 10: Scale-up History of U-GAS Technology
Scale-up History of U-GAS® Technology GTI Test and Development Units 3 Feedstock Capacity (tons/day) 1970 1975 1980, 1985 1990, 1995 2000 2005 2010
Slide 11: More Than $200 million Invested in U-GAS
More Than $200 million Invested in U-GAS® ‘ xR 8 3 GTI Test and 7 150 Development Units Feedstock Capacity (tons/day) Cumulative Investment ($ Millions) T 50 1970 1975 1980, 1985 1990, 1995 2000 2005 2010
Slide 12: Our Strategy: Build, Own and Operate U-GAS Facilities
Our Strategy: Build, Own and Operate U-GAS® Facilities Ses
Slide 13: China: A Tremendous Growth Opportunity
China: A Tremendous Growth Opportunity > Rapidly growing demand for domestically produced energy and chemical feedstocks Operating . Facili > Increasing use of methanol ae blending in high-demand transportation fuels > Political and regulatory commitment to clean coal technologies > “China” Advantag
Slide 14: Hai Hua Joint Venture
Hai Hua Joint Venture HAI HUA PROJECT Location Zaozhuang City, China Capacity 300 tons/day of coal [25 MW (equivalent)] Product Syngas Design Output 28,000 scm/hr Build Cost $29 million Financing Source Industrial and Commercial Bank of China (ICBC) Term Loan $12 million Groundbreaking December 2006
Slide 15: Hai Hua: One-Year Construction Cycle
Hai Hua: One-Year Construction Cycle March ‘06 Feb ‘07 May ‘07 Sept ‘o7 Civil Engineering Complete JV Agreement Signed Major Equipment Installed Construction Complete Jan ‘o8 First Syngas Produced.
Slide 16: Golden Concord Joint Venture
Golden Concord Joint Venture GOLDEN CONCORD PROJECT Location Inner Mongolia, China Capacity 1,200 tons/day of coal [100 MW (equivalent)] Product Methanol/DME Design Output 225,000 tons/year of methanol or 150,000 tons/year of DME Expected Cost $100 million Financing Under Negotiation Groundbreaking
Slide 17: Yima Joint Venture
Yima Joint Venture YIMA PROJECT Location Henan Province, China Capacity 4,000 tons/day of coal [400 MW (equivalent)] Product Methanol/DME Design Output 1,000,000 tons/year of methanol or 660,000 tons/year of DME Expected Cost $300 million Financing Under Negotiation Expected Groundbreaking 1H 2008 E
Slide 18: SES and AEI Will Jointly Develop U-GAS Plants Worldwide
SES and AEI Will Jointly Develop U-GAS® Plants Worldwide S€5_ VAN = Develops, owns and operates essential energy iN infrastructure for the world’s emerging markets >» Augments our developer network > Expands our project portfolio > Broadens our geographic reach Natural Gas My Power Retail Distributi
Slide 19: Production of million tons of coal per year
Production of 70 million tons of coal per year Can be converted to 1.6 million tons of methanol ($800 million revenue per year)
Slide 20: Financial Summary
Financial Summary NASDAQ: SYMX Date of Listing November 1, 2007 Shares Outstanding (Fully Diluted) 41 million shares 52-Week Range $5.00 - $15.92 Average Daily Volume (3-month) 35,000 shares Equity Offerings November 2007 $54 million at $9.00 per share July 2006 $16 million at $5.25 per share May 20
Slide 21: Real Projects / Demonstrated Execution
REAL PROJECTS /DEMONSTRATED EXECUTION ‘eS SYNTHESIS ENERGY SYSTEMS For time-lapsed video of Hai Hua, visit: www.synthesisenergy.com/haihua Cleanly Unlocking the Value of Coal