providing cost-effective technology solutions for … · 2017-09-20 · volume of food and...
TRANSCRIPT
Providing Cost-Effective Technology Solutions For
Sustainable Waste Disposal
(OTCQB: BHTG) Fall 2017
This presentation has been prepared by BioHiTech Global, Inc. (the ‘Company’) and includes information from other sources believed by management to be reliable. No representation or warranty, express or implied, is made as to the accuracy or completeness of any of the information set forth herein. This presentation may contain summaries of the terms of certain documents and agreements, but reference is made to the actual documents and agreements for the complete information contained herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice. This presentation contains statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements within the meaning of the “safe-harbor” provision of the Securities Litigation Reform Act of 1995.” These statements, estimates and projections reflect various assumptions made by the company concerning anticipated results, which may or may not prove to be correct. All statements contained in the presentation that address operating performance, future direction, management and control of company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control. Factors that could cause actual results result to differ materially from those described include, without limitation, those factors disclosed under “Item 1.A. Risk Factors” in our Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2017 for the year ended December 31, 2016. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security. Any such offer will be made solely to “accredited investors” or “qualified institutional buyers,” as defined by Rule 501 of Regulation D, or investors who are not “U.S. Person” as defined in Rule 902(k) of Regulation S, each promulgated under the Securities Act of 1933, as amended. This presentation is qualified in its entirety by our filings with the SEC, which contain more complete information about the Company and the risks of investing involving our company.
Safe Harbor
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BioHiTech provides proprietary innovative and disruptive technology solutions to cost-effectively reduce the volume of food and municipal solid waste destined for landfills.
§ Address food waste at the point of generation, eliminating transportation costs and other problems associated with traditional waste disposal to landfills.
§ Implement sophisticated real-time data analytics tools for supply chain management to affect positive behavioral change to reduce food waste generation.
§ Divert mixed municipal waste through a clean technology process that reduces weight and produces a renewable solid recovered fuel.
Our technologies and machinery provide sustainable disposal solutions for businesses and municipalities of all sizes that can positively impact the future.
Our Mission
Changing The Way We Think About Managing Waste
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The Company offers two cost-effective solutions for waste disposal geared toward providing a true zero landfill environment while disrupting an industry that has remained unchanged for decades:�� 1) Revolution Series™ and Eco-Safe Digester® on-site solutions for food waste
• Verticals include but not limited to: a) Food Chains & Retail Restaurants
b) Hospital Food Services & Education
c) Hospitality (hotels, conference centers, stadiums) d) Grocery Chains & Big Box Stores
e) Government
• First-of-its-kind data-driven technology platform led by CTO Bill Kratzer and a team of software engineers • Protected by patent-pending software
• A series of network-connected disposal devices communicate to its BioHiTech Cloud™
2) Entsorga HEBioT™ Technology to produce renewable fuel from Municipal Solid Waste • Large production facilities using the proprietary HEBioT (High Efficiency Biological Treatment) process to convert mixed municipal waste into a US
EPA recognized Solid Recovered Fuel (SRF).
• Reduces landfill usage by up to 80%
Product-Driven Strategies
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Traditional Waste Disposal § Corporate and municipal leaders
continue to struggle in achieving their sustainability goals.
§ Traditional waste companies fail to offer a solution.
§ BHTG offers the only commercially available technology solutions to solve for two problems.
25% Recycled OCC, Plastics, etc.
3% Composted
72% Landfilled (22% Food Waste)
(50% Residual Materials
25% Recycled OCC, Plastics, etc.
72% Landfilled (22% Food Waste)
(50% Residual Materials
3% Composted
Mixed Waste Big Box/Grocery/Retailer
The Big Picture Problems § Insufficient infrastructure to comply with
food waste diversion mandates sends only 3% to composting and the remaining 97% to landfills.
§ Lack of alternatives to landfills and Waste-to-Energy Plants for non-recyclable materials makes “Zero Waste” nearly impossible.
25% Recycled OCC, Plastics, etc.
72% Landfilled (22% Food Waste)
(50% Residual Materials)
The Individual Problems § Implementing successful corporate food
waste diversion programs is challenging. Existing options are costly, ineffective and environmentally unsound.
§ Lack of transparency limits ability to reduce food waste generation.
Traditional Waste Disposal Methods
Zero Waste Impossible!
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The BioHiTech Solution § Zero waste is possible by contracting
direct with one proven technology solution provider.
§ No subsidies needed or additional fees to customer.
§ Actionable as early as 2018.
25% Recycled OCC, Plastics, etc.
25% Food Waste Digested On-Site
by BHTG Digesters
8% Landfilled Residual Materials
Food Waste Eliminated § BioHiTech digesters process food waste
on-site at the point of generation, are cost-effective, and environmentally sound.
§ Proprietary cloud-based technology in each digester provides powerful supply chain management data analytics in real-time to reduce food waste.
Mixed Waste Diverted § HEBioT facility substantially reduces
waste logistics infrastructure . § 40-50% of the mixed waste received by
the HEBioT facility is converted into an EPA approved renewable fuel (SRF).
§ Only 8% of total waste is landfilled.
42% Other Waste Reduced or Converted
to SRF at BHTG HEBioT Facility
25% Food Waste
Digested On-site by
BHTG Digesters
25% Recycled OCC, Plastics, etc.
Definition of zero waste according to the Zero Waste International Alliance:
§ Any term that includes “zero” in it must achieve at least 90% diversion from landfills, incinerators, and the environment, and commit to a goal of reducing the amount of materials discarded, and any discards going to thermal processes as part of a continuous improvement system to zero.
One Company, End to End Solution
Zero Waste Possible!
Mixed Waste Big Box/Grocery/Retailer
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Revolution Series Digesters™ and the Eco-Safe Digester® § Sizes to support Quick-Serve Restaurants to Food Distribution Centers. § Converts on-site food waste to liquid that is safely discharged through any standard
sewer line. § Processes food waste for as little as $40.00 per ton in the U.S. § Connects remotely to real-time waste data and analytics as a valuable supply chain
management tool and to support CSR reporting. § Leasing Model-No upfront costs or capital investment to the customer. § Mobile access available with BioHiTech Cirrus™ app; Chat-based access available with
BioHiTech Alto™. § Complies with food waste regulations.
Full Line of Digesters
Combining cost-effective waste disposal with actionable data analytics.
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Growing Customer Base to Drive Revenue Growth
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The BioHiTech Cloud™ uses IoT technology to improve performance and maximize cost savings.
Real-time utilization data
No storage of waste
Eliminates odors, leaks, pests
Streamlines operations
Increases employee safety
Real-time environmental data
Landfill diversion
Fewer truck hauls=lower carbon emissions
�Regulation compliance, meets
wastewater requirements
Real-time cost savings
Reduces hauling costs and janitorial costs
�Eliminates fuel
surcharges �
No upfront costs
Real-time categorization
Track waste by department, tenant, vendor, supplier, etc.
OPERATIONAL ENVIRONMENTAL ECONOMIC PROFILING
Actionable Data and Analytics Provided through Patent Pending Applications
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BioHiTech’s proprietary cloud-based software leverages AWS and Slack to empower low-tech industrial machinery with high-tech data analytics capabilities and communication tools.
Powerful, Smart Technology to Increase Efficiency and Change Wasteful Behavior
§ Provides frictionless two-way natural language communication through chatbot technology.
§ Intelligently analyzes waste patterns and proactively provides actionable data analytics.
§ Enables real-time supply chain management oversight.
§ Functions as as a virtual assistant at your fingertips.
BioHiTech Cirrus™ & BioHiTech Alto™ BHTG Smart Mode Technology
§ Intelligently drives equipment performance through cloud-connected machine learning capabilities.
§ Automated optimization of equipment to improve performance, reduce water usage, and lower energy consumption.
§ Reduces servicing costs through remote adjustment and optimization.
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100% to Municipal Wastewater Treatment
Facility
97% to Landfill 97%
3% to Composting
Cost of as much as $118.65 per ton
3% Cost of as much as $120.00 per ton
Cost as little as $40.00 per ton
Real-Time Transparency
Limited Visibility
On-site Digester Technology Compared to Traditional Disposal
Traditional Disposal Methods
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Tipping Fee $850 per truck
Mechanical�
Pre-Screening Biological Process Refinement and
Sorting
Traditional Disposal Method
HEBioT Technology Recycled Metals
3% to 5%
Solid Recovered Fuel 40% to 50%
Inert Materials 8% to 10%
Weight Loss 30% to 35%
Residual for Landfill 15% to 20%
LAN
DFILL
Collection Vehicles
Aggregated (manual sorting)
ü Charges consistent tipping fees ü High EBITDA margins
ü Produces an EPA recognized renewable fuel ü Extends the useful life of existing landfills
HEBioT Benefits
Transfer Station
Tipping Fee $850 per truck
100%
HEBioT Technology Compared to Traditional Disposal
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HEBioT vs. Other Disposal Methods
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BioHiTech Global has a 17.2% equity interest in Entsorga West Virginia, the first HEBioT facility in the U.S., scheduled to begin commissioning in early 2018.
§ First Mechanical Biological Treatment facility in the U.S. to manufacture “engineered fuel” utilizing the HEBioT process.
§ Financed with $25,000,000 Industrial Development Bonds issued by the West Virginia Economic Development Authority.
§ Contracts for input and off-take already in place.
Location of Facility Berkeley County Landfill Site, Berkeley, WV Design Capacity 110,000 tons per year Waste Type Mixed Municipal Solid Waste/C&D Operational Availability 8,000 hours per year Stockpiling Availability 3,500 tons in bio-stabilization area
300 tons in receiving area
Amount of Energy Produced Up to 50,000 tons per year Engineered Solid Recovered Fuel (SRF)
Materials Recovered Up to 50,000 tons per year of SRF Up to 4,000 tons per year of Metals
Residuals Landfilled Approximately 20,000 tons per year (20%)
Representation of HEBioT Facility Westbury, UK
Martinsburg, West Virginia, Under Construction
Entsorga West Virginia: A Strategic Expansion Opportunity
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Digester
Market Size
Target
Adoption Rate
Estimated Deployable Market
Recurring Annual Revenue Per
Unit(1)
Annual Potential Market
Eco-Safe Digester Market 750,000 15% 112,500 $10,200 $1.15B Revolution Digester Market 1,500,000 15% 225,000 $4,500 $1.01B Total Market Estimate 2,250,000 337,500 $2.16B
Recurring Revenue Model for Digesters Multi-year leasing model creates dependable recurring revenue stream
Initial US Target Area Market Size Current Cost of
Disposal Annually Target
Adoption Rate Potential Market
Unit Needs Annual Potential
Revenue
11 Northeast States + DC 41M tons per year $2.5B 20% 36 Facilities $500 - $600M
HEBioT Technology Potential Market
(1) The Company's current focus is on multi-unit placements with larger clients, accordingly, the majority of placed units receive a discount to list price. The monthly revenue per unit in this example is based on sales of that unit and other models to a lesser extent at an estimated average lease price..
Annual Potential Revenue
$2.75B BHTG Target Revenue Model
Multi-Billion Dollar Market Opportunities for BHTG Products
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CEO COO CTO CFO DBD
Frank E. Celli Chief Executive �
Officer 20-Year Veteran �
of the Waste Industry
Bob Joyce Chief Operating �
Officer 30-Year Veteran �of Engineering �& IT Industries
Bill Kratzer Chief Technology
Officer 20-Year Veteran �of the IT Industry
Brian Essman Chief Financial�
Officer 30-Year Veteran �
of the Financial Industry
Dennis Soriano Director of Business
Development 40-Year Veteran �
of the Waste, Recycling, �& Concrete Industries
Board of Directors Frank E. Celli, James Chambers, Bob Graham,
Douglas M. VanOort, Harriet Hentges, and Anthony Fuller
Management Team
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Thank You BioHiTech Global
OTCQB: BHTG��
Corporate Office �80 Red Schoolhouse Road Suite 101�
Chestnut Ridge, NY 10977�Tel: 845.262.1081�
�Additional Offices �
Harrisburg, PA�London, U.K.
Contact Information�Lisa Giovannielli�
[email protected] www.biohitech.com
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Appendices
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New York Metro Area Waste Shed
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BioHiTech Global, through a joint venture, controls the exclusive development rights of Entsorga Italia’s patented High Efficiency Biological Treatment (“HEBioT”) process in the 11 Northeast States of the US and District of Columbia.
§ Proven technology with several plants currently processing approximately 1.1 million tons annually throughout Europe.
§ A cost-effective, automated alternative for the disposal of Municipal Solid Waste with tip fees consistent to that of traditional disposal options.
§ The proprietary HEBioT system produces an EPA recognized renewable fuel from unsorted MSW.
Three Stages of the Process
Weight loss through
evaporation and oxidation 30-35%
MECHANICAL PRE-SCREENING
BIOLOGICAL TREATMENT
MECHANICAL REFINEMENT AND
SORTING
Material recovery for recycling Metals, PVC
plastics, and Inerts 3-10%
Solid Recovered
Fuel 30-50%
Residuals landfilled 15-20%
(can be beneficial reuse)
HEBioT: A Cost-Effective Sustainable Waste Disposal Solution
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Regulatory actions coupled with Global Corporate Sustainability goals are forging the market opportunity for the deployment of emerging, sustainable disposal technologies.
§ The United States announced the first ever national food loss and waste goal, calling for a 50% reduction by 2030.
§ Twenty-nine states have been active in adopting or increasing renewable portfolio standards.
§ New York State passed first-ever state mandate to double the use of renewable energy by 2030.
§ Nine major U.S. cities have already adopted “Zero Waste” goals, including LA and NYC.
§ Numerous companies in the U.S., including Walmart, Unilever, Disney, Kroger, and Ahold have implemented “Zero Waste” initiatives.
Regulatory Environment in the U.S.
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