2012 bmc global resources & infrastructure conference, london · • second markets: south...

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| This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions, and any other statements other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. 2012 BMC Global Resources & Infrastructure Conference, London September 12, 2012

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Page 1: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

|

This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions, and any other statements other than statements of historical facts.

These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

2012 BMC Global Resources & Infrastructure Conference, LondonSeptember 12, 2012

Page 2: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Warren Zhao, Chairman & Co-CEO, Co-Founder• 24+ years of management skills, technical and electric engineering expertise in Environmental

Protection industry • Bachelor’s and Master’s degrees in electrical engineering from Northwestern Polytechnical University of

China

Philip Fan, President and Co-Founder• 23+ years of management skills, technical and engineering experience in water resources and

environmental sectors• Bachelor’s and Master’s degrees in environmental engineering from Hunan University and Master’s

degree in civil engineering from Louisiana State University (LSU)• Registered professional engineer (PE, inactive) in the U.S. since 2001Peter Dong, CFO and Co-Founder

• 18+ years of management skills and finance expertise • Bachelor’s degree in computer science from Nanjing University of Aeronautics and Astronautics and

Master’s degree in economics from Renmin University of China

Gavin Cheng, Co-CEO• 25+ years of management skills and engineering expertise• Bachelor of Engineering and Master of Engineering degrees from Nanjing University of Aeronautics and

Astronautics• Executive MBA from Peking University in 2001

Experienced Leadership

Page 3: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Our Combined Strengths Differentiate us from our Competitors and Constitute a Solid Foundation for Future Growth:

  Technologically Competent and Technology Oriented

  Well Established Presence in Large and Growing Market

  Significant Market Demand for Growth

  Extensive Market Knowledge, Strong Reputation and Relationships

  Strong Projects Backlog and Pipeline

  Highly Skilled Teams of Technical Professionals and Experienced Leadership with Proven Track Record of Execution

Key Strengths

Page 4: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Tri‐Tech – A Leading Technology Provider to Water and Environmental Industries

CoreValue

Organization

• Municipalities, MWR (Ministry of Water Resources

• SOEs, such as CNPC, SINOPEC, PetroChina & CNOOC 

• BUIDCo, QAPCO, Oxford Property

• Advanced Technology in Industrial Wastewater Treatment & Zero Liquid Discharge

• Seawater Desalination• Membrane Technology Advancements in Water 

Related Industries

• Headquartered in Beijing• 446 employees in 12 subsidiaries• Branch offices across China, India, and the U.S., 

entering lucrative water treatment/processing markets in India, and other Asian/Middle East countries.

• A 40 acre R&D and manufacturing facility under construction in Tianjin 

Target Market• Primary Markets: China

• Second Markets: South Asia, Middle East and North America

Selected CustomersVision

• Strategically positioned as a leading provider of technologies to water related industries in both China and global markets

Page 5: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Core Competencies

Industrial Wastewater Zero Liquid DischargeAddressable Market

• Identified $150 Million in Potentially Achievable Business Opportunity

• Water Recycling and Reuse

Seawater DesalinationAddressable Market

• $3.5+ Billion Domestic (3 Years)• Contributing to 15% of New Water Resources During the 12th

Five-Year Plan

Advanced Water & Wastewater TechnologiesMunicipal Water Supply & Sewage TreatmentIndustrial Water Processing & Pollution ControlWater Resource Monitoring & Management

System Integration with Membrane ApplicationsAddressable Market

• Water Purification• Sewage Treatment• Water Recycling & Reuse

Page 6: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Advancements in Water Related Sectors

Spectrum• Water and Wastewater Treatment• Water Recycling and Reuse• Water Resources Management & Irrigation

Competitive Advantages • Advanced proprietary technologies and products• Experience in large project execution• Superior customer bases

Feed

Feed

Membrane layer 1

Membrane layer 2

Page 7: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Steady Growth in Revenue & Net Income$M

illio

n

8.416.8

43.5

85.9

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012

Revenue

E

1.7 

3.9 

7.1 8.1 

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2008 2009 2010 2011 2012E

Net Income

$Mill

ion

128

12.1

Page 8: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Sector Significant AwardsContract Value

($Mil)Water

TreatmentOrdos Water Treatment Plant Phases I and II (UF + NF) 60

Water Treatment System for a Canadian Hotel (UF) 0.7

Sewage and Industrial

Wastewater Treatment

Three sewerage collection system and sewerage treatment plants projects for three townships in India

42

Reused Water Quality Upgrade Project for Wastewater Treatment Plant of TAEZ

1.5

Water processing unit contract for a steel plant in Mexico 3.6

Solid Waste Disposal

Solid Waste Sanitary Landfill Project for Xinle, Hebei Province 3.7

Water Conservancy

32 flash flood monitoring and forecasting projects in 28 Chinese provinces and municipalities, were implemented during 2011

14

Seawater Desalination

Seawater desalination unit contract in Qatar (MED-TC) 8.3

Industrial Production

Safety

Yanchang petroleum Group production security system and emergency command center contracts

4

Selected Project Portfolio

Page 9: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Industrial Growth Drivers

China 12th Five‐Year Plan on Environmental Protection • $536 billion for environmental protection• Add 42 million tons of daily sewage treatment 

capacity, 85% treatment rate by 2015Continuously increase the use of recycled water

• Limit 635 billion cubic meters annual consumption by 2015

Drinking Water Treatment, New Safe Drinking Water Standard GB5749‐2006 

• 71 New water quality indexes added• RMB 220 billion for upgrading of purification 

facilities

State Council Circular No. 1, RMB 4 trillion in water conservancy over next 10 yearsNewly Initiated National Flash Flood Forecasting Program in 1800+ counties throughout China to be completed by 2013Strong Fund Allocation to flash flood projects

$69 billion in industrial wastewater treatment  during 12th Five‐Year Plan Period

• Zero Liquid Discharge (ZLD) for industrial wastewater treatment particularly in North and Northwest China

• Seawater Desalination capacity will be 2.2‐2.6 million m3/d by 2015 in China, quadruple of that by end of 2011

0.62 1.18 1.79 1.79 2.89 3.48 4.96

13.0415.0718.39

26.13

6066

0

10

20

30

40

50

60

70

Robust Growth for Seawater Desalination Capacity in China 

10,0

00 m

3/d

Page 10: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Market Cap (9/10/2012) : $31.8 MShares O/S: 8.21 million Float : 55.3% of O/STotal institutional Positions: 20 institutional holders (14 North Americans), 14.8% of O/S;18 mutual funds, 9.3% of O/S Current % of O/S held by Top 10 institutional holders: 13.8%

Regional Institutional & Mutual Funds Concentration

North America 7.9%

Europe 16.1% Asia

44.7%

Stock Ownership (as of June 2012)

Page 11: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Projects Backlog and Pipeline

11.5

59.6

94.579.2

89.7

127.1

152.2

0

20

40

60

80

100

120

140

160

12/31/09 12/31/10 12/31/12 6/30/12

Backlog

Pipeline

Total backlog of $79.2 million (as of June 30, 2012)•$41.9 million (Municipal)•$12.2 million (Water Resources)•$25.1 million (Industrial)

Projected Pipeline of 152.2 million (as of June 30, 2012)• $89.7 million (Municipal)• $23.1 million (Water Resources)• $39.4 million (Industrial)

$Mill

ion

*

* Tri-Tech did not issue the projects pipeline as of 12/31/09

Page 12: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Global Footprint & Peers

Key Global Customers • Jasper Park Lodge, Canada• Bihar Urban Infrastructure Development Corporation

Limited, India• Qatar Petrochemical Co.• Ambbio in Mexico• CNOOC• CNPC Nigeria

Competitors in International Markets• GE • IDE• Veolia• Aqua-Tech

Page 13: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

R&D Activities

Tianjin Baoding R&D Center Under Construction

• 40 Acres Land Property

• Phase I – completed 20,000 square meters construction

Forward Osmosis Products Localization

• Landfill Leachate Treatment Feasibility Study

• Localization of Personal Hydration Package

MBR – Membrane Technologies

Groundwater Monitoring Remote Terminal

Unit Software Upgrade

Drought Information and Decision-Making Systems

Page 14: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Appendix

Page 15: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Milestone

2012

2011

2010

2009

• Founded as a provider of technical solutions and services for water resource management.

• IPO on NASDAQ Capital Market and became the first public Chinese company providing solutions to water resources engineering, municipal wastewater treatment and industrial pollution control.

• Raised $33.1 million in gross proceeds in secondary offering. • Established Tri-Tech U.S and Tri-Tech India • Acquired BSST and began to provide services in industrial sectors• Won $60 Million contract for Inner Mongolia Drinking Water Treatment Plant

• Acquired J&Y International Inc. a Wisconsin water company and began to penetrate into seawater desalination, water recycling and zero liquid discharge of high salinity wastewater.

• Acquired a majority ownership of Yuanjie Water and expanded water supplying systems for high-rise buildings.

• Won Total $51 million international contracts in India, Qatar and Canada

2002

• Won an aggregate of $24.6 Million contracts in Water Resources Management• Won $3.6 Million water processing unit contract for a steel plant in Mexico• Awarded Top 10 Chinese Emerging Water Enterprise

Page 16: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Income Statement – Six Months ended June 30, 2012 and 2011

Period Ending 30-Jun-12 30-Jun-11

Total Revenue 42,262 37,755

Cost of Revenue 31,220 27,441

Gross Profit 11,042 10,314

Operating Expenses

Selling General and Administrative 7,876 4,735

Others 80 67

Operating Income or Loss 3,086 5,512

Net Income Applicable To Common Shares 2,809 3,461

In ‘000 USD

Diluted EPS $0.34 $0.42

Page 17: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Balance Sheet Period Ending 30-Jun-12 31-Dec-11AssetsCurrent Assets

Cash And Cash Equivalents 11,287 14,024Net Receivables 48,236 29,904Inventory 6,516 7,706Other Current Assets 9,708 6,121

Total Current Assets 75,747 57,755Non-Current Assets

Long-Term Unbilled Revenue 57,184 59,299Plant and Equipment, Net 1,543 1,437Construction in Progress 4,713 4,567Intangible Assets, Net 11,180 11,610Long-Term Restricted Cash 2,554 2,542Goodwill 1,441 1,441

Total Non-Current Assets 78,615 80,896Total Assets 154,362 138,651

LiabilitiesCurrent Liabilities

Accounts Payable 49,053 41,777Short/Current Long Term Debt 14,628 10,784Other Current Liabilities 3,145 1,887

Total Current Liabilities 66,826 54,448Long Term Debt - -Other Liabilities 3,285 3,456Minority Interest 5,862 6,018Total Liabilities 75,973 63,922 Stockholders' Equity

Total Stockholder Equity 78,389 74,729

In ‘000 USD

Page 18: 2012 BMC Global Resources & Infrastructure Conference, London · • Second Markets: South Asia, Middle East and North America Selected Customers Vision • Strategically positioned

Contact Information

Tri-Tech Holding Inc.Phil Fan, PresidentJanice Wang, IR Manager+ 86 010 5732 3696+ 86 010 5732 [email protected][email protected]

Auditor: Marcum Bernstein & PinchukContact: Drew BernsteinEmail: [email protected] York City, NY646.442.4811

Legal Counsel: Kaufman & CanolesContact: Bradley A. HanebergEmail: [email protected] East Cary Street, Suite 1400Two James CenterRichmond, Virginia 23219T (804) 771.5700F (804) 771.5777

Michael Gaugler Dmitriy Shapiro

Brean Murray & Carret Co., Inc.212-702-6539

Global Hunter Securities, LLC646-264-5606

Analyst Coverage: