2014 CSS Investor ConferenceOverview of Greenkote Plc

21-MAY-14

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Ecologically, Economically- We’ve Got You Covered

Confidential

Slide 2 - © 2012 Greenkote Plc. All rights reserved.

What is Greenkote?

Patented thermal diffusion coating method – The Greenkote Technology• Metal surfaces react with dry metal powder to create an alloy surface

• Imparts improved corrosion, wear, and adhesion properties

Drivers for uptake:• Alternative to Cr, Zn or Zn-Ni plating, zinc flake, & hot-dip galvanizing

• Environmental regulations – heavy metals, solvents, acids, end-of-life• Environmentally sound approach• Flexible, small capital footprint • Replace expensive stainless steel

Superior performance/cost solution for small-medium sized parts

Slide 3 - © 2012 Greenkote Plc. All rights reserved.

®Greenkote Advantages

Diffusion reacted Zn-Fe surface layer• Metallurgically bonded – strong adhesion• Galvanic and barrier corrosion protection• Complete, conformal 20-40µm coverage• Good surface hardness – HV450• Promotes adhesion to topcoats or rubber• Stable to 600+ºC

Component cross section after

Greenkote processconformal Greenkote

layer

STEELPART

Slide 4 - © 2012 Greenkote Plc. All rights reserved.

Growth StrategyNorth America

• Established credible source of supply and samples in Brook Park, Ohio• ISO certified, full production capability• Passed full customer audit – Trelleborg• Growing technical support capabilities

• Selling full coating service• Small scale production or seed business for new licensees

• Greenkote PM1 specified by name

Europe• Leveraging established licensees – assist with marketing• Prospecting for new licensees• Transitioning US projects back to Europe

ROW• Strictly opportunistic

All activity funded within overall cash flow

Slide 5 - © 2012 Greenkote Plc. All rights reserved.

Currently Addressing

In Developmen

t

Future Targets

Where is Greenkote Applicable?Anywhere zinc or heavy metal plating is used

• Construction• Automotive• Mining Supplies• Wind Power• Rubber-Metal Bonding• Powder Metal Parts

• Power Transmission• General Industrial• Fasteners• Appliances

• Oil & Gas• Rail & Heavy Transport• Marine Construction

Industry certifications• BBA – UK• SCI - UK• DiBt – GER• BAM – Germany• ASTM – US

Approvals• Caterpillar• Trelleborg• Siemens• GM• GKN• VW/Audi/Daimler• Soucy Baron

License sales• UK (X2)• South Africa• Austria• US (GK plant)• Israel

Market Acceptance

Currently Addressing

New User/Applicator• Brazil (signed)• US• GK-Mexico• Germany• France• China (TCB)

Slide 6 - © 2012 Greenkote Plc. All rights reserved.

Licensee & User Pipeline

Europe US South America Asia

• EOT (Ger)• PSG (France)• Galfa (Ger/Pol)• Nelson Stud (Ger)• GKN (Ger)• Hilti (Lichtenstein)• Paulstra (France)• Delmon (France)• Anochrome

(Czech)• Weigel (Ger)• Thun (Neth)• Disk-Lock

• Nelson Stud• Trelleborg• GKN• Disk-Lock• Whir/pool• DTNA• ZF-Voit (Mex)• Erieview Plating• Ford• ATK• Chevron

• Nipra• Fosfer• Metallac

• TCB (China)• Deepak (India)• KPF/KPC (Korea)• Nelson Stud (China)

Slide 7 - © 2012 Greenkote Plc. All rights reserved.

®

Greenkote + topcoats• B18 topcoat – 3000+ hrs SST• No red or white surface rust

Sealers and blackening• Improve corrosion• Darken surface• Special rubber molding sealer

Proven for powder metal parts• Eliminates expensive sealing

Established weldability• Potential in fabricated components

Technology Enhancement

Disk-Lock wheel nuts with topcoat

Slide 8 - © 2012 Greenkote Plc. All rights reserved.

®Business OverviewActivity & Pipeline Developments

North America• PM1 specified at Caterpillar, Soucy Baron, Trelleborg and GKN• Projects slated for this year are $250k/yr coating revenue• Quotes & Trials on several very large projects• Whirlpool, Trelleborg, Daimler Truck, Disk-Lock

Europe• Anochrome coming on strong• Expressed interest in Czech Republic• Licensee tests in Germany, France, Poland• GKN-USA pushing for French licensee

Asia• TCB-Shanghai Electric JV

Africa• Duraset running multi shifts• Pushing for cheaper grade of powder – weak economy

Slide 9 - © 2012 Greenkote Plc. All rights reserved.

®Key Pipeline Projectsspecify Greenkote by name

GKN-Ford rubber molded CV boot (£125k)Disk-Lock heavy wheel

nuts (£TBD)

Trelleborg powder metal mass (Ford) (£100k)ZF-VW suspension spring

seat (£300k)

Soucy Baron rubber molded spring (£75k)

Whirlpool washing machine drive (£400k)

Slide 10 - © 2012 Greenkote Plc. All rights reserved.

Chernobyl new safe containment (NSC)TCB M30 bolts – first connection May-12

Courtesy of Tension Control Bolts

Slide 11 - © 2012 Greenkote Plc. All rights reserved.

®Focus for 2014

Ramp up Ohio coating business• Grow credibility in US• ‘Seed’ US licensee

Standardize topcoats and sealers• Proprietary, branded products

Start up Nipra-Brazil

Commercialize Duraset ‘low cost’ thick coat powder

Update technical data

Complete licensee agreements on continental Europe

Pursue additional funding opportunities to accelerate selling efforts

Trelleborg powder metal (Ford Mustang)

coated product

Slide 12 - © 2012 Greenkote Plc. All rights reserved.

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Core Traditional Coating Business – supports Greenkote development• 2013 Mexico & Louisville revenue up 29% vs 2011• 2013 Group Cash inflow (before financing) +£184k vs. £461k outflow in 2011

Financial Overview

(£000) 2011 2012 2013 2014Draft Forecast

RevenuesCoating Services 5,560 6,708 7,168 7,728 Greenkote Technology 393 206 106 510

5,953 6,914 7,273 8,454 Gross Profits

Coating Services 1,813 2,175 2,193 2,406 Greenkote Technology 202 50 8 219

2,015 2,225 2,200 2,625

R&D, Selling & Admin 2,025 2,102 2,041 2,291

Operating (Loss)/ProfitsBefore FRS20 Expense (10) 123 159 334

Cash Flow before Financing (461) 148 184 359

Slide 13 - © 2012 Greenkote Plc. All rights reserved.

®Funding Initiatives

Edica-Garrett• Strategic partner search

Numerous discussions with investment partners• Agents identifying PE and venture firms

Investigating AIM listing

Current Greenkote activity determined by cash flow

MoldTech bearing bracket (Jeep)

incoming & finished parts

Slide 14 - © 2012 Greenkote Plc. All rights reserved.

Steps to Successful Value Creation & Exit

• Build powder demand - broaden Greenkote user & applicator network• Enhance Greenkote brand recognition – get name in front of potential

strategic buyers• Engage strategic buyer prospects – leverage all paths of engagement

• Exit partner profile• large global Greenkote end user• materials/chemical company• global coating service company• new technology consortium

Value Creation & Exit

GKN drivetrain CV boots (Ford)loaded for coating