Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

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A New Science in Sustainable Plastic Technology "Cradle to Cradle" 2012 Clean Tech. Winner 2012 Top 25 World Plastic Innovation Winner

description

Envirolastech revolutionizes the green building product and recycling industries. Our sustainable technology reduces and eliminates communities dependence on landfills and opens new markets in recycled structural grade plastic products (exceeds wood/concrete ASTMS) We are building the worlds first Zero Waste Recycling/Manufacturing facility. For more detailed technical Information, news and articles, check out our website: www.envirolastech.com Imagine…what you toss out, we transform!

Transcript of Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Page 1: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

A New Science in Sustainable Plastic Technology  "Cradle to Cradle"

2012 Clean Tech. Winner 2012 Top 25 World Plastic Innovation Winner

Page 2: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Multiple Points for Revenue Generation - “Many Bites of the Apple”

1st Closed Loop Recycling Center Utilize Fly Ash, Glass & Plastic 1-7 as a Raw Material- Reduces or

Eliminates Growing Landfill Burden

1st. True Structural Products, Eco-friendly Process

Fully Integrated Business - Control Over Entire Supply Chain

Scalable Process Poised for Global Expansion

Value Proposition

Page 3: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Pellet

Productio

n

Waste

processing

Executive Summary

5 - Revenue from licensing opportunities

Commercializing novel, award-winning plastic recycling and manufacturing technology

Product

Manufacturing

Recyc

lable

Was

te

1 - Revenue from regional haulers tipping fees

2 - Revenue from operating a material recovery facility

3 - Revenue from operating a processing facility

4 - Revenue from selling finished goods

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1. Landfills are rapidly filling, causing financial & environmental issues for local governments

2. Waste & recycling haulers have lower profitability due to hauling loads long distances

3. Recycled plastics have many inherent weaknesses

4. Growing demand for high performance green building materials can not be met by the current recycled plastic technology on the market

PROBLEMS

Problems & Solutions

4. Architects, contractors, building and home owners will now be able to use superior performing green building materials made of recycled plastic

3. Recycled plastics manufacturers will gain improved performance from our pellets

1. Local governments – reduce or eliminate waste going into landfills

2. Waste/recycling haulers – increased profitability due to shorter hauls

SOLUTIONS

Page 5: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Our recycled product has a broad range of physical properties which can be manipulated and easily customized to fit specific needs…

Float ↔ Sink Flexible ↔ Rigid Soft ↔ Hard

Our technology has undergone rigorous testing and structural certifications, and has won major awards

Our Proprietary Technology

Our know-how and novel technology produces a durable recycled product:

• Strong as wood and concrete

• Mfg. through a zero waste cost-effective process

Page 6: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Our Game Changing Technology’s Benefits

Impervious to salt/fresh water, acid, insects, mold, rot, warping, splitting

Page 7: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

30+Product Applications Completed

• Sold & installed 10 yrs. ago • 2yrs. full scale manufacturing• Photos are actual products produced

Page 8: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Validated Technology

Favorable test results from two Independent labs… - Material Testing Services of University Northern

Iowa - Twin Cities Testing

First recycled plastic product awarded an engineering stamp certifying STRUCTURAL weight-bearing capabilities

Product ranked in “Top 25 World Plastic Innovations” by Polymer Solutions

Product and business model 2012 Minnesota Cup Clean-tech Winner

Page 9: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Market Dynamics

Siding Market 2013 US Market Size = $10.2 Billion US Siding demand to approach $ 13 Billion an increase of 28% by 2016

Decking/Plastic Market US Market demand for wood-plastic composite and plastic lumber will see an estimated 13 % CAGR - $5.4 billion market in 2015

Green Building Market 44% of all non-residential construction projects use green materials 54% of office projects, helped by green building mandates for government offices 44% of health care projects went to green materials in 2012 45% of school projects use green material applications 61% of residential and remodeling use sustainable green building products

Page 10: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Our Competition

Industry Growth Of Our Two Largest Siding Competitors:

Manufacturer Revenue 2011 Revenue 2010

LP siding (Louisiana Pacific) $341.5 M

$324.2 M

Hardy Board Siding $814 M

$828.1 M

Overall Siding Market Growth + 5% + 4%

We intend to compete against other players in the market by capitalizing on our advantages:

Far greater lifespan

Vastly superior materialLower cost end product

Ease of application

Lower maintenance cost

Page 11: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Go To Market ModelWaste Receiving• County mandates that haulers must pick up recycling ensures supply• Government can mandate which recycler the hauler must use• Current letters of intent will transition into multi-year contracts • Vastly reduced trucking distances entice haulers to join

Waste Haulers

Raw Waste Commodities Buyers

Recycled Plastic Manufacturers

Architects, Designers, Building Owners

Raw Waste Commodities• Regional commodity brokers will be used• Partnering with regional brokers to ensure the best commodity price • Partnering with these brokers also reduces our trucking costs

Recycled Plastic Pellets• Establish partnerships with plastic manufacturers capitalizing on our

pellets superior performance produced on standard equipment• Enter into licensing agreements with these companies to take

advantage of their OEM brand name, sales/marketing channels• Speaking at industry events to create awareness & thought

leadership

Green Building Products• Utilize brokers to sell directly to regional distributors will allow us to

use their existing sales force to get our products to end users, and reduces our initial sales force payroll expenses

• Marketing via ads in industry publications, tradeshows• Speak at conventions based on interest in unique exciting technology

Page 12: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Facility Revenue Schematic Floor-plan

Material RecoveryFacility

1. Sort recycled material. Glass, Metals, Paper commodities sold

2. Residual waste sent to be burned at Waste to Energy Facility

3. Plastics sent to Processing Facility

ReceiveRecycledWaste

Material

Plastic ProcessingFacility

1. Prepare Plastic Waste for Manufacturing

2. Sell excess commodities

ProcessedPlasticsStorage

Waste Mineral fills

Final Goods Production Lines

Siding

Decking

Plastic Lumber

Pelletizin

g

1 2 3

45

Business Flow & Integrated Facility Diagram

Page 13: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Facility Revenue Schematic Floor-plan

Material RecoveryFacility

1. Receive revenue from Metals,& Paper commodities sold

2. Plastics sent to Processing Facility

ReceiveTipping fee from haulers

Plastic ProcessingFacility

Sell excess commodities

ProcessedPlasticsStorage

Receive revenue from Mineral fills

Final Goods Production Lines

Siding

Decking

Plastic Lumber

Pelletizin

g

1 2 3

45

Receive revenue from finished goods & pellets

Business Revenue Flow Diagram

Page 14: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Book of Business

Envirolastech has secured multiple Letters of Intent/Interest from a variety of regional and national distributors and construction companies eager to distribute, sell, install and promote our products.

Larson’s Siding and Windows E3 ServicesMaster Pallets BTS ConstructionBabcock Lumber Play By Design

Envirolastech is in discussions with government entities for potential facilities location and use permits:

Rochester Area Economic Development Rochester City CouncilPine Island Area Economic Development Louisiana Economic Development Michigan Economic DevelopmentMarquette Area Economic DevelopmentCity of Marquette Michigan

US Environmental Protection Agency Minnesota Pollution Control Agency Olmsted County Waste ManagementMinn. Department of Natural Resources

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The TeamThe Core

Professional Partners Advisory Board

Briggs and MorganJoseph T. Kinning

Wendland and UtzDavid Peterson

McGladrey L.L.P.Chad Anderson CPAJim Berg CPALinda Newman Tax

Senior Advisor

Bill HeimerSteven JustusDon KeyssorIain McnerlinDavid Milton

Paul Schmitt CEO

Tim Pickett COO

Geno Wente VP  Waste Materials and Logistics 

Katy Warden CFO

Katrine JustusAdministration and Media

Mitch Augeson Sales

Jeff MintzSeiga OhimineBill ShadidDon Shelby

Advisors

Mike Vekich

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Financials

Revenue & Net IncomeIn $Millions

0

10

20

30

40

50

60

70

80

Net Income

$ 46

.8 M

1st Facility In Olmsted County

$ 21

.8 M

What are the Key assumptions that support these numbers?

What are the Key milestones to hit these numbers?

Is this scalable to other communities and what would it look like?

$14.

25 M

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Financials

Revenue & Net IncomeIn $Millions

3 Facilities Started by Yr. 5

2014 2015 2016 2017 2018 2019 2020 2021 2022

-20,000,000

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

ProfitRevenue

2nd p

lan

t st

arte

d

3rd p

lan

t st

arte

d

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Land & Building $5,000,000

Raw Materials $200,000

Equipment $6,000,000

Marketing $1,250,000

Educational Program $150,000

Legal $300,000

R&D $400,000

Overhead $1,300,000

Closing Costs $400,000

TOTAL $15,000,000

Capital Requirements

11 million –USDA Loan Program, Goodhue County Electric COOP Loan 0% 1 million –Deeds grant Mn.

3 million - Private Equity Raise

Capital Source Break Down

Page 19: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Competitive Advantages of Integrated Business

Multiple income streams

Decreased cost and raw material control

Ability to leverage staffing resources

Strong profit margins

1st Material Recovery Facility in Southern MN.

1st Plastics Processing Facility in Southern MN.

1st True “cradle to cradle” Zero Waste Recycling & Manufacturing facility

100% green recycling

Scalable with Proven Manufacturing & can be replicated in other communities by expansion or licensing

Page 20: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Employment for Hundreds

of People

Strong, Long Lasting

Products

Protecting the Environment

Communities Independent of Landfills

Converting Waste to Produce

Energy and Recycled Products

Broad Reach of Novel Technology

Page 21: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

www.envirolastech.com 507-322-8195

Upon request these materials are available.

Subscription agreement - Business plan - 5yr projections -24 month cost projection - Audited books, all with Significant Assumptions, All reviewed and completed by McGladrey L.L.P. L.O.I.’s From Haulers & Distributors - A.S.T.M. testing - New Equipment Verification Runs. More Additional Supporting Documentation Available Upon Request

Additional Information Available

Page 22: Envirolastech Inc. Worlds 1st. strucual plastics, Eliminates the need for Landfills

Thank You“Honor commerce as the engine of change”

William McDonough

A New Science in Sustainable Plastic Technology"Cradle to Cradle"