2014 CSS Investor ConferenceOverview of Greenkote Plc
21-MAY-14
®
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.
®
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
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