mapal investor presentation september 2016 final
TRANSCRIPT
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In the State of Israel this Presentation shall not be regarded as an offer to the public to purchase securities of the Company under the Israeli Securities Law, 5728 – 1968 (the “ISL”), which requires a prospectus to bepublished and authorized by the Israel Securities Authority, unless it complies with certain provisions of Section 15 of the ISL, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35investors, subject to certain conditions; or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the ISL, subject to certain conditions.
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INVESTMENT OPPORTUNITY3
Mapal is seeking to raise between US$2 million and US$3 million to fund
the Company's operations and enable it to :
Accelerate sales growth by developing its sales and marketing teams
and initiatives
Fund the development of a rental fleet.
Fund continued Research & Development (R&D) into new products
Provide general Working Capital
Fund the development of the standardised catalogue items – allowing
“Off the shelf” sales.
WHY MAPAL?4
Innovative technology
The traditional mechanical surface aeration methods of wastewater are not efficient in terms of operational cost (energy + maintenance) and/or in terms of the process performance. Highly energy intensive.
Newer technologies reduce energy consumption but require specific conditions. This requires expensive new-builds or process interruption for upgrades
Proven technology
Over 50 installations worldwide with world leaders global players both on the municipal and industrial markets
Many repeat customers
Huge market potential
Over US$100bn global expenditure on wastewater treatment in 2015
Growing demand for more effective and cheaper wastewater treatment solutions
Increased and more Stringent regulation
MAPAL COMPANY OVERVIEW5
Technology and Solution Provider – Complete Package
Based in Northern Israel
Founded in 2007, actual activity started in 2010.
Mapal Green Energy UK Ltd., fully owned subsidiary
Unique and Internationally Patented Technology
- FFBATM Floating Fine Bubble Aeration system
Proven installations worldwide
Track record of success and satisfied customers.
BOARD OF DIRECTORS6
Zeev Fisher,
CEO & Co-FounderOver 25 years’ experience in
infrastructure project management,
international business development
and marketing in the water and
wastewater industries.
B.Sc. Mechanical Eng. Ben Gurion
University
Yoram Yuval,
CFO Previously worked as a senior
manager at PWC Israel, where he
specialised in a wide range of
auditing and financial reporting
processes
CPA, BA degree in Economics and
Accounting, Tel Aviv University
Steven Flax,
Non-Executive DirectorNominated by CSSCM. Steven is
a partner in Aron Bakst & Co. and
CEO of Bluegum Ltd and was
previously CFO of Digitek Holdings
Ltd. Prior to this, he served as the
CFO of Giron Real Estate and
Development, a real estate
company listed on the Tel Aviv
Stock Exchange, and of the Faire
Fund, a residential development
private equity fund in Israel
Certified public accountant both in
Israel and South Africa
Ilan Diamond,
Chairman
Non- Executive DirectorCEO Phigold Limited. He is founder
and former Director & CEO of Adira
Energy (TSX), founder and former
Director & COO of Genesis Energy,
founder and former Director & CEO
of Avalanche Gold, Tubatse
Platinum, Madinoge Resources and
others. He has over 15 years
experience in all facets of the
resource and technology industries,
including finance, operations,
exploration, and development.
B. Bus Science (Hons) University of
Cape Town. Post Grad. Dip
Mathematical Modelling of
Derivatives UNISA.
THE CHALLENGE 7
High Energy Costs
Stringent Environmental
Regulations
Population Growth
Cost effective solution meeting strict environmental regulations and
population growth while improving
process performance and lowering energy
costs
APPLICATIONS 8
Upgrade and Retrofit : Upgrade exiting sites from mechanical surfaceaeration to fine bubble aeration and drastically reduce the operational cost(energy and maintenance) and also improve the process performance andincrease the flow. No need to stop the process – all the upgrade works is donelive.
Provide additional air / oxygen – The Mapal FFBA system can be added to anexisting reactors, can be installed to replace, or as an addition to malfunctioningaeration systems (fine bubble or mechanical aeration) to provide more oxygen,either on a temporary or permanent basis, in order to overcome shortage ofoxygen that cause the WWTP to meet the consent regulation and odorproblems.
Industrial sector - suitable for hazardous and corrosive wastewater and highconcentrations of sludge.
Turnkey new-build treatment plants - Mapal can design and build newtreatment plants, based on aerated lagoon extensive process, with the FFBATM
technology, hence supply cost effective and simple to operate sanitationsolutions to the rural communities in the developing countries.
Contaminated lakes and rivers - treat polluted water sources such ascontaminated lakes and rivers, remove odors, and avoid environmental criseswith self-contained system
UPGRADE AND RETROFIT 9
Ete Flores, Brazil
Thames Water, UK
Upgrade from mechanical surface aeration to fine bubble aeration
Operational and maintenance cost savings
Improvement of the oxidation to support the biological treatment process
Ibleen Piggery, Israel
TURNKEY 10
New treatment plants based on the FFBATM
technology
Cost effective solution in terms of capital and operational expenditure
Simple and easy to operate.
The best solution for rural communities in developing countries.
Ayelet Gadot, Israel
ET Air Holdings, Congo
Arad, Israel
EXTRA AIR 11
Intel, Israel
Supply of additional oxygen to the existing aeration system
Installed using the existing assets of the plant
Available on a temporary or permanent basis
Quick and simple solution for improving
process, enabling larger capacity and/or
eliminating odours
Sappi Fine Paper Mill, S. AfricaAPP - Serang Paper Mill, Indonesia
RESEARCH & DEVELOPMENT12
Mapal is committed to being at the forefront of technological development
and continually invests in research and developing new ways of doing things
or new products all together. We currently have two initiatives on the go:
Design a cheaper way of our current system in order to access a lower
end of the market.
An all together new concept whereby we will provide tertiary
treatment to wastewater directly from our units. This will allow direct
use of water from the wastewater treatment facility (plant, lagoon,
etc.) directly to back to the faculty (industrial/commercial) or directly
for agricultural use. If we can get this right it will revolutionize the
industry.
FINANCIAL- Forecast 13
With enough capital to support required marketing and sales initiatives , we expect our sales to rapidly grow.
• FY 2016 US$1 million
• FY 2017 US$2.5 million
• FY 2018 US$4.5 million
• FY 2019 The sky is the limit
By FY2025, we could realistically achieve sales of US$50 million per annum.
We estimate that Breakeven will be achieved at a US$2 million sales level
FINANCIAL– Investment proposition 14
Anticipated RaiseMapal is seeking to raise between US$2 million and US$3 million in equity
ValuationPre Money Valuation is US$5.5 million to US$6 million
ComparableInternational Wastewater Systems (CNSX: IWS) – Mkt Cap CAD$ 33m (~US$25m)
Test plant. JV on developing new solution. Virtually no sales.
Emefcy International (ASX: EMC) – Mkt Cap AUS$ 202m (~US$154m)Early stage – still a dream company. Little actual sales.
ReadinessMapal is well documented and ready for a listing transaction.
The futureIf listed there are interesting merger opportunities in this very interesting water field in which Mapal is a player
ExitAcquisition by one of major equipment players will be relevant when the company will meet certain revenue thresholds and may bring forward investor’s exit.
FINANCIAL – Use of proceeds 15
Sales & MarketingTo enhance Mapal sales and achieve our forecasts, we will hire additional technical sales managers (process engineers), to focus in our target territories (Latin America, Australia, Southern Africa, UK and South East Asia) and in the future China, India, USA, Canada and others. We will also spend more in “being on the ground” and traveling to these territories, as well as exhibitions and other selected marketing activities.
Rental ActivityEmergency oxygen provides fantastic returns. Rental also often moves the budget for a project from the clients Capex to Opex thus shortening the sales cycle. In order to facilitate this activity rentals units need to be available “on-demand”. Capex investment is required in order to establish a set of units available for immediate rental and deployment, in different territories.
Research & DevelopmentAs a technologically driven company we are committed to on-going improvements, and we need resources to bring the demands of the industry and dreams and visions of our engineers to the market.
FINANCIAL– Cap table 16
Issued shares Fully diluted
Fully diluted
including loan notes
conversion
No. of
shares%
No. of
shares%
No. of
shares%
General equity investors
(approx. 300)78.6m 88.7 78.6m 67.8 78.6m 56.6
CSS Group 4.3m 4.8 16.5m 14.2 16.5m 11.9
Magen (Co-Founder) 4m 4.5 4m 3.5 4m 2.9
Zeev Fisher (Co-Founder
& CEO )1.8m 2 8.5m 7.3 8.5m 6.1
Other directors and
employees- - 8m 6.9 8m 5.8
Others - - 0.3m 0.3 0.3m 0.2
Loan notes holders (upon
conversion)- - - - 23m 16.5
88.7m 100 115.9m 100 138.9m 100
CONTACT DETAILS
www.mapal-ge.com
Not withstanding any other agreement or document, by accepting the information enclosed or attached hereto, or contained herein,as the case maybe,
you here by agree and acknowledge that the information is confidential and proprietary intellectual property of Mapal Green Energy Ltd (“Mapal”) and
that all intellectual property and other rights with respect to such information remain solely with Mapal. Your receipt of this information does not grant
you or any other person or entity, and shall not be deemed to grant you or such other person or entity, any intellectual property or other rights with respect
to such information. You further agree and acknowledge that you shall keep this information in strict confidence and shall not disclose it to any person or
entity, nor use it other than strictly for the purpose for which it was disclosed or provided to you. Disclosure of such information could be a breach of
confidence and Mapal reserves all rights with respect to such potential breach
+972 4 8200231
APPENDICES
What is it waste water treatment
Aeration
Methods of aeration : Mechanical surface aeration Vs Fine bubble aeration
Mapal solution, advantages and technical description.
Global installations
Clients testimonials
Pic of projects
WASTEWATER TREATMENT PROCESS 19
o The WASTEWATER TREATMENT process is designed to meet local
regulations by removing suspended solids, biodegradable organic compounds, pathogenic bacteria and chemical compounds, such as
nitrates, ammonia and phosphates
o THREE MAIN STAGES OF WASTEWATER TREATMENT
• Pre-treatment: Physical treatment process to remove large objects from the water
• Secondary: Biological treatment – the removal of dissolved contaminants from the waste water requiring continuous aeration to supply the requisite oxygen to support the biological treatment process
• Tertiary (optional): Ultra-filtration and disinfection of the effluent
AERATION 20
Aeration is the essential and fundamental part of wastewater treatmentand supports the biological process
The aeration needed for treatment of wastewater accounts for usually 60% or more of the total energy cost of the WWTP
Since aeration is a key factor in the Opex of the WWTP (energy and maintenance) a solution is needed that meets the process performance requirements and reduces the Opex costs
Aeration, M. K. Stenstrom & D. Rosso, University of California – Los Angeles, Irvine Feb 2010
METHODS OF AERATION
Example of a vertical mechanical surface aerator
21
MECHANICAL SURFACE AERATORS
Mix the wastewater by spraying the surface layer into the air
Commonly used technology with large number of suppliers
BUT …
‒ High energy consumption from moving parts in the water
‒ Prone to mechanical failure and break-down ‒ High maintenance costs
‒ Method results in splashing, unpleasant odours and high noise levels
‒ Uneven distribution of dissolvable oxygen
METHODS OF AERATION (cont ’d)
Top: Fine bubble aeration diffusers fixed to the level floor of a concrete reactor
Bottom: Example of fixed fine bubble disc diffusers
22
BUT …
Diffusers are usually fixed to the floor meaning:‒ to achieve even oxygen distribution,
the reactor must have a level floor ‒ can’t be retro-fitted to existing WWTPs
without draining the reactor‒ can’t carry out maintenance without
draining the reactor‒ can’t be fitted to lagoons as they generally
don’t have level floors
FINE BUBBLE AERATION – by far the most efficient aeration method
More advanced method, diffusers near the bottom of the reactor
50-60% more efficient than mechanical surface aeration
Higher standard oxygen transfer rate (SOTR) of 3.6-4.8kg O2/kW versus an equivalent figure of 0.9-2.1kg O2/kW for mechanical surface aeration
Achieves even distribution of oxygen
THE MAPAL SOLUTION 23
The FFBATM system is an innovative, patented and cost effective modularsystem that can be installed in existing lagoons/reactors. The FFBATM systemis a technology, with IP protection in key territories (EU, Russia, USA &others). Clients include UK water utilities and industrial corporations
The Benefits
• Significant ongoing operational and maintenance cost savings
- up to 50-60% more efficient compared to mechanical surfaceaeration and no moving parts in the water
• The ROI is approximately 4-5 years based on operational cost saving(energy and maintenance)
• High efficiency of oxygen transfer rate.
• Adaptable to a wide variety of scenarios both on industrial andmunicipal applications – no need for level concrete floor
• Easy and safe to install, operate and maintain‒ Wet installation to live facilities enables Mapal System to be
retrofitted to existing WWTPs - no down time or processinterruption
‒ Stainless steel structure is robust and more resilient than traditional diffusers
‒ Modular units, enabling the Company to offer a wide range of aeration solutions for the treatment of wastewater
• Complete solution provider from pre-sale consultancy services throughto post-sale support Mapal’s FFBATM unit being lifted into
place
THE MAPAL SOLUTION 24
The unique design combines the advantages of both mechanical surface aeration and fine bubble aeration without the disadvantages of either.
OUR BENEFITS
Efficiency of Fine Bubble Aeration
No process interruption during installation or maintenanceSuitable for any type of reactor or lagoon at every scale of operation
Modular system – units can be isolated
Provide additional oxygen to an existing system
No moving parts in the water
No need for a levelled floorOdour elimination
Cost effective; Totex
Floating Fine Bubble Aeration (FFBATM)
25TECHNICAL FEATURES
Removable modular units – easy to add/remove/re-position as the
process demands (eg. nitrification/denitrification)
Automatically adjustable to the water depth
Diffusers always levelled above the floor, even if the floor is uneven
Aeration and mixing for aggressive and hazardous liquids
Tubular diffusers – reduces risk of fouling and scaling
Option for various types of construction material
Easy to operate
Robust stainless steel structure and diffusers for long
operational life
Can provide different air flow rates to individual units within the
system
26GLOBAL INSTALLATIONS - Proven technology.
Customer Project Country No. of UnitsIndustrial/
Municipal
Anglian Water Stanbridgeford UK 6 Municipal
Thames Water Chesham UK 12 Municipal
United Utilities Horwich UK 16 Municipal
Erwat Carl G South Africa 1 Municipal + Industrial
Jannie Maree Jannie Maree South Africa 1 Industrial
Sappi Sappi- stage 1 South Africa 4 Industrial
Sappi-stage 2 South Africa 4 Industrial
AFRGI Abattoir South Africa 8 Industrial
A.L.D Netanya Israel 6 Municipal + Industrial
Eilat Israel 6 Municipal
Arad Israel 6 Municipal
Elkon Elkon Israel 2 Industrial
Hanaton Hanaton Israel 3 Municipal + Dairy farm
Irgun HaMegadlim Iblin (Pig Farm) Israel 4 Industrial
Iblin 2 Israel 8 Industrial
Kibbutz Cohav Michael Cohav Michael Israel 3 Municipal
Kibbutz Galed Galed Israel 4 Municipal + Dairy farm
Kibbutz Gvar Am Gvar Am Israel 2 Municipal + Industrial
Kibbutz Ramot Menashe Ramot Menashe Israel 6 Municipal
Kolchei Galil Elyon Gonen Israel 10 Municipal + Industrial
Baram Israel 5 Municipal + Industrial
Neot Mordechai Israel 9 Municipal + Industrial
Mishmar Hayarden Israel 7 Municipal
Intel – Kiryat Gat FAB 28 WWTP Israel 2 Industrial
Zohar Dalia - Dentergents Odor treatment Israel 5 Industrial
27Global installations – proven technology. (continue)
Customer Project CountryNo. of
Units
Industrial/
Municipal
Kornish Chen Off Hanegev Israel 3 Industrial
Maale Eron Maale Eron Israel 16 Municipal + Industrial
Magen Shaul Magen Shaul Israel 15 Municipal
Makhleva Yotvata Yotvata Israel 1 Municipal + Industrial
Marom Galil Dalton Israel 16 Industrial
Mateh HaSher Shlomi Israel 1 Municipal
Shomrat Israel 1 Municipal
Mei Ra'anana Ra'anana Israel 9 Municipal + Industrial
Mei Yagur Yagur Israel 9 Municipal + Industrial
Upgrade Yagur WWTP Israel 8 Municipal + Industrial
Palgei Maim Yokneam Israel 18 Municipal + Industrial
Psadim Israel 1 Industrial
Peleg HaGalil Bet Jan Israel 10 Municipal + Industrial
RGA Yavne Israel 6 Municipal + Industrial
Ramat Hasharon Israel 8 Municipal + Industrial
Ramat Hasharon No. 2 Israel 8 Municipal + Industrial
Shtang Nisgav Israel 5 Municipal
Mashabim Israel 1 Municipal
Zanlakol Zanlakol Israel 4 Industrial
ET Air Holdings Congo Congo 10 Municipal
Foz Do Brazil Ete Flores Brazil 2 Municipal
Era Optima Cabiri Angola 3 Municipal + Dairy farm
Abu Kosh GC Ktora WWTP Israel 2 Municipal
Serang APP Indonesia 4 Industrial
Ayelet Gadot Elko Israel 10 Municipal
Jerusalem Jerusalem WWTP Israel 5 Municipal
Sappi Fine Paper, South Africa – Industrial installation 32
Sappi fine paper mill. Aeration of WWTP lagoon, replacing surface aeration and liquid oxygen injection