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Investor Presentation Waste-to-Products Technology March 2017

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Page 1: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Investor Presentation

Waste-to-Products TechnologyMarch 2017

Page 2: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

INFORMATION SUBJECT TO CHANGE. In no event shall Ecolomondo Corporation, its directors, officers, employees, agents or advisors be liable for any loss of use, data,income or profits incidental, special, indirect or consequential or any similar losses or damages of any kind whatsoever, whether or not advised of the possibility of damages,and on any theory of liability, arising out of or in connection with the use of the information contained in this presentation. This information in this presentation is believed tobe accurate, however, technical inaccuracies or typographical errors may have occurred. Information at this presentation, may be subject to change.LEGAL NOTICE. The information contained within this presentation is not intended to be a comprehensive review of all matters and developments concerning EcolomondoCorporation and Ecolomondo Corporation assumes no responsibility as to its completeness, accuracy or currency. This presentation may contain forward–looking statementswhich involve risks and uncertainties which may affect Ecolomondo Corporation’s business and prospects and cause actual results to differ from the forward–lookingstatements. Specifically, charts, tables and text in this presentation may make use of estimates.Forward–looking statements contained in this presentation may be affected by the following factors, among others: risks associated with the business of EcolomondoCorporation, development and commercialization; changes in the price of commodities; changes in foreign currency exchange rates; commodity and foreign currency hedgingactivities; increased operating costs; increased labour costs; increasing interest rates applicable to debt; government regulations including regulations relating to prices, taxes,royalties and environmental protection.FORWARD LOOKING STATEMENTS AND DISCLOSURE. This presentation contains certain forward-looking information. Words such as “may”, “would”, “could”, “will”,“expects”, “anticipates”, “believes”, variations of such words and similar expressions are intended to identify such forward looking information. Specifically, and withoutlimiting the generality of the foregoing, all information included in this presentation that addresses activities, events or developments that Ecolomondo Corporation expects oranticipates will or may occur in the future, including, but not limited to, such things as future capital (including the amount and nature thereof), projects under development,goals, objectives, plans and references to the future success of such entities is forward looking information, including, without limitation, such information contained in thispresentation. Actual results could differ materially from those expressed or implied by such forward looking information as a result of certain factors.Viewers are cautioned not to place undue reliance on forward looking information contained in this presentation, which reflects the analysis of the management ofEcolomondo Corporation, as appropriate, only as of the date of this presentation. There can be no assurance that the actual results or developments anticipated byEcolomondo Corporation will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on Ecolomondo Corporation or any ofthe business or operations of such entities. Ecolomondo Corporation does not intend, and does not assume any obligation, to update such forward-looking information.Forecasts and other information that may contain forward-looking statements are subject to risks and uncertainties. Therefore, all statements, other than statements ofhistorical fact, are to be considered forward looking. Such forward–looking information and statements are based on current expectations, forecasts, estimates, andprojections about global and regional economic conditions as well as industries that are major markets for Ecolomondo Corporation. There can be no assurances that suchstatements will prove accurate and, therefore, viewers are cautioned that such statements may differ materially form actual future events. There are no representations orwarranties. Viewers are referred to the information circular filed on SEDAR (www.sedar.com), and more specifically the section related to risk factors that could cause actualresults to differ from those contained in the forward-looking statements.MARKET AND INDUSTRY DATA. This presentation includes market and industry data that has been obtained from third party sources, including industry publications, as wellas industry data prepared by Ecolomondo Corporation on the basis of its knowledge of and experience in its industry (including management’s estimates and assumptionsrelating to such industry based on that knowledge). The knowledge of management of Ecolomondo Corporation of such industry has been developed through its experienceand participation in such industry. Although management of Ecolomondo Corporation believes such information to be reliable, Ecolomondo Corporation nor its managementhave independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying economic assumptions relied upon by suchsources. References in this presentation to any publications, reports, surveys or articles prepared by third parties should not be construed as depicting the complete findings ofthe entire publication, report, survey or article. The information in any such publication, report, survey or article is not incorporated by reference in this presentation.GENERAL DISCLAIMERS. This presentation and its content is owned and copyright Ecolomondo Corporation. All rights reserved. Any redistribution, reproduction, publicperformance or display of part or all of the contents in any form is prohibited. You may not, without our express written permission, distribute or commercially exploit thecontent, nor may you transmit it or store it in any other form of electronic retrieval system.

NOTICE

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Page 3: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

EXECUTIVE SUMMARY

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Ecolomondo’s proprietary Thermal Decomposition technology (“TDP”) converts most types ofhydrocarbon waste into marketable commodity products: oil, steel, gas and carbon black.

TDP technology is the result of over 25 years of continuous investment in research anddevelopment.

Ecolomondo’s third generation technology is cutting edge, with each reactor having thecapacity to process up to 8,000 tons of hydrocarbon waste per year.

Growing levels of hydrocarbon waste ensure continuous feedstock and create large globalmarkets for TDP.

Technological breakthroughs in areas of process optimization, automation, end-productprocessing and safety, position Ecolomondo to become an industry leader.

Ecolomondo’s main revenues come from the sale of TDP turnkey facilities and royalties fromtheir operations.

TDP facilities generate revenues from the sale of their end-products, tipping fees and carboncredits.

Our first focus: scrap tires as a feedstock, because they yield end-products with the highestcommercial value, especially the recycled carbon black.

Page 4: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

THE CHALLENGE

4(1) Strategyr (2) Global Footprint Network (3) McKinsey & Co

Consumption of natural resources could reach the equivalent of two planets by the 2030s.1

The number of manufactured cars is expected to double by the 2030s.2

Global demand for tires should reach 2.5 billion per year by 2020.3

Current global disposal practices of landfilling and burning destroy much needed resources.For example, in the USA :

48.6% (~175 million tires) are burned as Tire-Derived Fuel (“TDF”).9% (~30 million tires) are landfilled.NOTE: If these tires were to be processed by TDP, it would create a market size in the

USA alone of $2.5 Billion for Ecolomondo.

Currently 1.5 billion tires achieve their end-of-life per year. If all were to be recycled, thiswould represent 30 billion lbs of resources per year, including 10 billion lbs of carbon black.Recovering this amount of carbon black would ensure sustainability of carbon black andavoid as much as 25 million tons of CO2 emissions per year.

Hydrocarbon waste represents 34% of all landfilling – 440 million tons per year.

Page 5: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

THE SOLUTION

Carbon black

*Output note: using scrap tires as feedstock 5

Feedstock End-products

Ecolomondo’s Thermal Decomposition Process (“TDP”) is a waste-to-products technology that recovers valuable resources from hydrocarbon waste.

TDP TECHNOLOGY

Page 6: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Light Oil10%

Carbon Black39%Gas

9%

Particulate and Vapor Loss

1%

Heavy Oil41%

TDP maximizes carbon black output, the end-product with the highest commercial value.

OUTPUT FROM TIRE WASTE

Average results from tests at the Contrecoeur facility and validated by BBA (Ecolomondo Technology Mass Balance, Technical Report, Nov. 10, 2015) and Sixth Element Sustainable Management (Appraisal of Ecolomondo for Chardan Capital Markets, LLC, Nov. 25, 2014)

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One ton of waste one ton of end-products.=

Page 7: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Tony Hawke, B.Sc. Géo

PresidentTerrapex Environnement Ltée

“The test results noted that the efficiency of the process is very good.

It is also a stellar example of durable development, in that it recycles tires intonew products.

With respect to the operational efficiency of the tire recycling equipment, thereport presents a totally accounted for and impressive recovery of gas, oil, carbonblack, steel and water.

The emissions: All of the parameters analyzed were below the regulatoryrequirements.”

Dr. Gerald Kutney, Ph. D.Managing DirectorSixth Element Sustainable Management

“I was impressed by the simplicity of the operation, which was complemented by the automation system. The simplicity also supports the consistent quality of the recycled carbon black and the oil.”

Dr. Franco Berruti, Ph. D., P. Eng.DirectorInstitute for Chemicals and Fuels from Alternative Resources at Western Univ.

“The solution developed by Ecolomondo’s team of scientists and engineers is a green one. Nothing goes to waste!

The technology is robust, safe and the products are of high quality.”

Jean-Remi Lanteigne, Ph.D.

Polytechnique Montreal

‘It is important to mention that Ecolomondo owns one of the rare pyrolysis technologies in the world which has demonstrated it can operate successfully at an industrial scale.” (translation from doctorate thesis)

Gilles Tremblay, P.Chem., M.Sc.

Consultant

“All air measurements from stack from the TDP comply easily (much less than 10%of the specified norm) with EPA Air Emission Standards and also to eachparameter specified in Environment Quebec Air Quality Standards.”

TDP REVIEWS

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Page 8: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Note 1: On average, one barrel weighs 308.7 lbsNote 2: Steel is extracted at the shredding stage and is not part of the payload of the reactorNote 3: Chart assumes there are 3 batches per day (24 hours of operation), 335 days per year (79.5% productivity efficiency)

PROJECTED REVENUESProjected Production Yields And Revenues From Tire Waste

(per TDP reactor – in US dollars)

End-Products % of Batch Projected Price

Per Batch Per Day(3) Per Year(3)

Yield Revenue Yield Revenue Yield Revenue

Carbon Black 39% US$740/ ton

2.5tons

US$1,876 7.6tons

US$5,628 2,548tons

US$1,885,280

Light Oil (1) 10.2% US$45/ barrel

4.3barrels

US$193 12.9barrels

US$580 4,317barrels

US$194,261

Heavy Oil (1) 40.8% US$45/ barrel

17.2barrels

US$773 51.5barrels

US$2,320 17,268barrels

US$777,044

Process Gas 9% US$200/ ton

0.59Tons

US$117 1.8tons

US$351 588tons

US$117,585

Particulate loss (water, etc)

1% Not Marketable N/A 0 N/A 0 N/A 0

Sub-total 100% US$2,959 US$8,879 US$2,974,170

Steel (2) 11.4% US$140 0.84ton

US$117 2.5tons

US$351 841tons

US$117,673

Projected Revenues US$3,076 US$9,230 US$3,091,843

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Tipping fees and carbon credits are not included in the projected revenues above.

Page 9: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

CARBON BLACKCARBON BLACK IS A VITAL RESOURCE

CARBON BLACK

Carbon black is the result of the controlledcombustion of either oil or gas. During thecombustion, the unburnt char forms an extremelyfine and fluffy powder known as carbon black.Used in many rubber compounds, including tires, as a: Reinforcing agent Coloring agent for ink, paints and plastics Basically everything that is black has a form of

carbon black in it.

Ecolomondo’s TDP process provides a qualityrecovered carbon black

Similar in properties to utility carbon black, thegrade that has the largest market share

Consistent and high quality particles

Excellent dispersion characteristics

Free of the often present hydrocarbon odors

WHAT IS CARBON BLACK?

MARKETS FOR rCBRECOVERED CARBON BLACK (“rCB”)

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Carbon black distributors

Manufacturers of:

Rubber hoses, conveyor belts, off-roadtires, bumpers, roof shingles, pipes,asphalt, cart wheels, semi conductivecables, casings, moldings, masterbatches, etc.

Page 10: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

GROWTH DRIVERS FOR rCB

0

2

4

6

8

10

12

14

16

1998 2003 2008 2013 2018Production Consumption

0

1

2

3

4

5

1998 2003 2008 2013 2018

WORLD CONSUMPTION VS. PRODUCTION (2)

Mill

ion

Tons

Lbs p

er C

apita

THE CURRENT SITUATION

Demand for virgin carbon black is expected to outpace supply by 2018, due to :• Increasing consumption per capita• Steady growth of global population• Global environmental pressures are restricting

production capacity.

Global prices are increasing.

WORLD CONSUMPTION PER CAPITA (1)

(1) Ceresana (Market Intelligence Consulting), Market Study on Carbon Black, April 2013.

MARKET CONDITIONS FOR CARBON BLACK

Demand will outpace supply

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Expected supply interruptions and sustainability should drive demand

Higher global pricing

Recovered carbon black is a sustainable, lower cost alternative to virgin carbon black.

Virgin carbon black

Virgin carbon black

Page 11: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

CONTRECOEUR PILOT PLANT

Two industrial-size reactors

• Each with capacity of 18 tons per day• Closed batch technology• Tested and operated since 2009

Key technical milestones achieved for industrial operations

• Efficient process parameters• Security and safety• Automation• End-products quality• Closed loop water recycling and emissions control• Process gas used as energy source

All technological advancements have been tested at our pilot plant that should soon begin commercial operations.

Page 12: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

2018 ❑ Start commercial operations at Contrecoeur facility ❑ Begin construction of Hawkesbury facility ❑ Completion of financing for Hawkesbury facility ☑ Successful process gas desulfurization☑ EPCM contract signed for Hawkesbury facility

MILESTONES

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2009 ☑ Acquisition by Sorella Group

2015 ☑ Signature of New Jersey Letter of Intent☑ Completion of automation platform

2014 ☑ Signature of Hawkesbury Letter of Intent☑ TDP commercially ready

2016 ☑ Letter of Intent with Cortina Capital Corp.

1990 ☑ Beginning of TDP research

2002 ☑ Construction of Contrecoeur pilot plant

2012 ☑ Breakthrough in reactor cooling

2017 ☑ CSA approval of Contrecoeur facility ☑ Trading on TSX Venture Exchange as of Oct.

31☑ Secured private placement of $2.2 million

Page 13: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Proprietary, turnkey automated system

Efficient and safe process parameters

Energy self-sufficient

Respects environmental standards

Scalable, modular technology

High-quality yield that has global demand

COMPETITIVE ADVANTAGES

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Already scaled to industrial size

25+ years of experience and data acquisition

First mover advantage

Strategically positioned to be a market leader

TDP Reactor

Page 14: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

BUSINESS MODEL

Sale of turnkey TDP facilities

• Third parties• Corporately owned• Joint ventures

After-market services

• Technology upgrades• Spare parts and extended warranties• Facility design to sales support

Projected Revenues From The Sale of TDP Facilities

Facility Size List Price Royalty Streams

2 – Reactor C$26.0 mm C$325 k

4 – Reactor C$50.0 mm C$651 k

6 – Reactor C$66.0 mm C$890 k

8 – Reactor C$80.0 mm C$1.3 mm

Ecolomondo’s Revenue Streams1.

2.

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Letters of Intent for Joint Ventures

Location JV Partner Sale Price Security Deposit Plant Size Capacity

Hawkesbury 50% C$23.0 mm 2 reactors 13,000 tons/yr

New Jersey 50% C$50.0 mm 4 reactors 26,000 tons/yr

Ecolomondo expects its main revenues to come from the sale of TDP turnkey facilities and royalties from their operations.

Page 15: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Note 1: We refer you to our notice on Page 2 of this document on forward-looking statements.Note 2: Carbon credits have not been factored into the revenues above.Note 3: Financial expense assumes 85% financing at 7% payable over 7 years, therefore projected EBITDA increases rapidly during years 2 to 7 of operations.Note 4: An income tax rate of 30% is assumed.

PROJECTED TDP FACILITIES P&L

Facility Size 2-reactor 4-reactor 6-reactor 8-reactor

REVENUE (2)

Carbon Black 4.90 9.80 14.70 19.60

Oil 2.52 5.04 758 10.10

Process Gas .31 .61 .92 1.22

Steel .31 .61 .92 1.22

Tipping fees .73 1.46 1.73 2.30

TOTAL REVENUE 8.78 17.54 25.86 34.48

EXPENSE

Operating Expense 4.00 7.22 9.98 12.86

Other Expenses

Administration .40 .66 .95 .99

Amortization 1.72 3.26 4.30 5.25

Financial (3) 1.53 2.90 3.84 4.65

NET INCOME AFTER TAXES (4) .78 2.44 4.75 7.50

Projected EBITDA 4.37 9.66 14.92 20.62

Projected Payback on FCF 7.7 years 6.7 years 5.7 years 5.0 years

(millions, C$)

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(1)

TDP facilities revenues come from selling the end-products.

Page 16: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Stock Prices

Cash & Cash Equivalents $4.3 M

Total Assets $9.5 M

Long Term Liabilities ** $1.3 M

Cash Runway Q2 2020

MARKET AND FINANCIAL OVERVIEW

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CapitalExchange: TSX-V Symbol: ECM

Public since * May 2016

52 Week High-Low $0.50 - $0.14

Share price $0.33

Market Capitalization $58 million

Shares outstanding 176 million

Options 1.3 million @ $0.10 (exp. 2026)11.72 million @ $0.35 (exp. 2027)

Warrants31,200 @ $0.10 (Agent, exp. May 2018)228,571 @ $0.42 (Agent, exp. April 2020)3,352,804 @ $0.50 (investors, exp. Apr 2020)

Fully diluted 192.6 million

Ownership (fully diluted)

Management: 79.94%

FinancialsCash & Cash Equivalents $4.3 M

Total Assets $9.5 M

Long Term Liabilities ** $1.3 M

Cash Runway Q2 2020* Cortina Capital Corp., a capital pool corporation, obtained the listing of its common

shares on the TSX Venture Exchange in May 2016 and the reverse take-over withEcolomondo Corporation Inc. constituted its Qualifying Transaction.

Since Oct. 31, 2017Avg shares traded per day: 40,375Avg closing price: $0.354

(As of Feb. 26, 2018)

** Advances from companies under common control

Page 17: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Directors Details

Elio Sorella, B.Comm.Chairman and CEO

• 1999 –Present Chief Executive Officer for 16 years of Futurplast Extrusions, the leading plastic extrusion company in North America specializing in acrylic tubes, rods and profiles

• 1995 –Present Chairman and CEO of the Sorella Group• Experience in textiles, cosmetics, real estate, plastic extrusion and transport

Eric Favreau, MBA, LL.B.

Vice-Chair of the Board,Audit & Compensation Committees

• Chief Financial Officer, Cavalia• 2005-2014 CFO, Xebec and other companies• 2002-2005 Vice-President, Industrial Sector, Desjardins Venture Group

Donald Prinsky, CPA, CAChief Financial Officer

• Vice-president, Monit• 2004 –2010 Founder of Donald Prinsky Consulting Services• 1969 –2004 Richter LLP (named partner in 1979)

Tennyson Anthony, Esq.Audit & Compensation Committees

• Tennyson S. Anthony, LLP , attorney in CT• 2011-2017 President & CEO of Kelyniam Global (cranial and cranial-facial implants)

Alain Denis, MBA, IAS.A.

Audit Committee

• Senior Vice-President, Fonds de Solidarité FTQ• Executive positions in financial and venture capital firms• Special assistant to the Minister of finance and regional development of Canada• Member of Boards of corporations and non-profit organizations and of Institute of Corporate Directors

Brigitte Gauthier, Esq., LL.B.

Compensation Committee

• Partner, law firm Alepin Gauthier• Member of Boards of many non-profit organizations, including Montgomery College and Hospital Cite

de la Sante foundations.• Chair of the Board of many organizations, including the Bar of Laval and the Laval Women Center

Mario Girard

• 2011-Present President & CEO, the Quebec Port Authority• 2008-2011 CEO, Quebec Foundation of Entrepreneurship• 2001-2007 Founder and CEO, Nstein Technologies• 1985-2001 Founder and CEO, Gespro Technologies• Member of the World Presidents’ Organizations

BOARD OF DIRECTORS

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Page 18: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Management Details

Elio Sorella, B.Comm.Chairman and CEO

• 1999 –Present Chief Executive Officer for 16 years of Futurplast Extrusions, the leading plastic extrusion company in North America specializing in acrylic tubes, rods and profiles

• 1995 –Present Chairman and CEO of the Sorella Group• Experience in textiles, cosmetics, real estate, plastic extrusion and transport

JF Labbé, MBA, LL.M.

Chief Operating Officer

• Strategy consulting with PriceWaterhouseCoopers, Balanced Scorecard Collaborative and SECOR• Special assistant to the Minister of Finance and regional development of Canada• Counsel for Hydro-Quebec• Founding President of Recycor, a former leading Canadian scrap tire recycler

Donald Prinsky, CPA, CAChief Financial Officer

• Vice-president, Monit• 2004 –2010 Founder of Donald Prinsky Consulting Services• 1969 –2004 Richter LLP (named partner in 1979)

Lawrence Culliford, B.Eng.Business Development

• Over 23 years of experience on business development in hydrocarbon waste solutions• Extensive experience on waste management businesses and solutions

Jose Luis Quiros, MBA, Eng.

Director Operations

• Process Chemical engineer for over 20 years,• General Manager and Research Team Leader for Polygom, a large tire production facility

Ahmed Kamar, Ph.D.

Director Automation

• Automation engineer for 10 years with G.E. Industrial Systems• Designed control system integration and process automation for several Fortune 500 companies• Over 30 scientific articles in specialized journals

Hugo Morin, Eng.

Director Engineering

• Industrial engineer for biotech and waste-to-energy companies including PGNature and Biofour• Experienced in design, manufacture, installation and management of waste processing equipment

MANAGEMENT

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Page 19: Investor Presentation Waste-to-Products Technology · Terrapex Environnement Ltée “The test results noted that the efficiency of the process is very good. It is also a stellar

Thank you !