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NanoHoldings L.L.C (“NH”)ACQUISITION OF MAGENTA
TURNING GARBAGE INTO ELECTRICITY & WATER
Changing the Way Communities Deal With Waste
NANOHOLDINGS ACQUSITION OF MAGENTA
NanoHoldings is a global technology development company
Specialize in energy and water technologies that are better, cheaper, faster and available to the mass market.
Key anchor investors are leading corporate and financial institutions: Morgan Stanley McLendon Ventures [Former CEO Chesapeake Energy] Schlumberger Royal DSM [formerly Dutch State Mining] Anchor [India] HRH Prince Turki bin Faisal Al Saud KACST
Raising US$650 mm from existing NanoHoldings investors to acquire Magenta 1st term sheet from existing shareholder for US$325mm in hand
NanoHoldings Corporate Development Strategy
Longer Term Revenue
Medium Term Revenue
Short Term Revenue
Historically:
waste has been buried…. …or waste has been burned.
WHERE DOES YOUR GARBAGE GO?
5
Magenta is the world leader in plasma gasification Waste-to-Energy (WTE) technology
Converts Municipal Solid Waste (MSW) into syngas which then fuels a GE engine to generate electricity.
Most advanced commercial plasma gasification WTE, and only scaled operating facility in the world.
Proven, Commercial-Ready Technology with by multi-year operating history
Since January 2008, Magenta has operated a commercial-sized single module demonstration plant, processing up to 100 tons per day of MSW
Magenta provides the world’s best solution to the Municipal Solid Waste disposal
95% reduction in solid waste from landfills and significantly reduces air emissions Cleaner, cheaper and more efficient than incineration. Produces 0.9 MWh of Baseload Power per ton of MSW processed or 126,000
MWh annually per module Produces 228 liters of water per ton or 31.9 million liters of clean water per
year per module
MAGENTA WASTE TO ENERGY TECHNOLOGY
Changing the Way Communities Deal With Waste
PROCESS
Four Stage Conversion Process
11
Four Stage Conversion Process
Stage 1 - Shredding
13
Four Stage Conversion Process
Stage 2 - Conversion
15
Four Stage Conversion Process
Stage 3 - Refining
Four Stage Conversion Process
Stage 4 - Power Generation
19
Changing the Way Communities Deal With Waste
COMPETITIVE ANALYSIS
100
80
60
40
20
0
NITROGENOXIDE
68%Less
DIOXINS &FURANS
78%Less
HEAVYMETALS
91%Less
ORGANICCOMPOUNDS
99%Less
PARTICULATEMATTER
33%Less
*Magenta data compared to published Vancouver, Canada Landfill data.
MAGENTA IMPROVES LOCAL AIR QUALITY vs LANDFILL
88% LESS
PARTICULATEMATTER
75% LESS
NITROGENOXIDE
98% LESS
DIOXINS &FURANS
99.7% LESS
HEAVYMETALS
98% LESS
NON-METHANE ORGANIC
COMPOUNDS
95% LESS
HYDROGEN CHLORIDE
61% LESS
SULPHUR DIOXIDE
Magenta emissions compared to the Durham, Ontario incinerator planned limits:
Latest Incinerator Technology
Magenta
100
80
60
40
20
0
MAGENTA vs INCINERATION
Pros Cons
IncinerationIncineration
LandfillLandfill
Cheaper to build and operate, requiring lower tip fees
− Given space required and NIMBY issues, expensive transfer station and transport costs in addition to tip fee
− Contaminates and leachate into municipal water tables
− Lower power output from landfill gas capture− Large footprint (the amount of waste a
Magenta plant converts annually is equivalent to a landfill 15x its size)
Established technology
High cost at community scale
Relatively low cost at scale 350,000 tons/yr or more
− Higher emissions than competing WTE technologies
− Residues (mainly ash) need to landfilled − Requires large scale to be cost-competitive − Permitting is virtually impossible in some
jurisdictions due to NIMBY issues (smoke stack, truck traffic)
Given high prices of fuels, potentially attractive economics
− Early stage− Two-stage conversion− Yet to be proven at scale
− Low net energy production− Not competitive on costs/efficiencyGasificationGasification
Low emissions
High landfill diversion
Anaerobic
Digestion
Anaerobic
Digestion
Cost leader among alternatives to land filling
No smoke stack
− ~20-30% of the MSW (non-biological / non-recyclable materials) needs further processing or is landfilled
− Pre-sorting is required
Liquid Fuels/
Chemicals
Liquid Fuels/
Chemicals
COMPETITIVE OVERVIEW – WHY MAGENTA LEADS OTHER WASTE MANAGEMENT METHODS
Changing the Way Communities Deal With Waste
INFLECTION POINT: COMMERCIALIZATION & PROFITABILITY
Q2 2005Magenta Energy Group
Q4 2015Operations of 1st Commercial Plant
Q2 2005 Q3 2013 Q4 2015
A DECADE OF DEVELOPMENT: A DECADE AHEAD OF THE COMPETITION
MAGENTA TODAY:First commercial plant
leading to rapid sales growthand profit expansion
Investment
Profit
Competitors:At capital intensive
technological development stage
MAGENTA: POINT OF COMMERCIALIZATION
McKinsey & Co - Waste to Energy Market Study Results
Total Addressable Market (TAM)
(MSW in million tons per year)
North America 66
Europe 70
Asia Pacific 98
ROW 60
1,535 230
Target Magenta Share(10-15% depending on
market)
# Units # of Magenta Units
1,628 163
2,279 342
1,395 140
TOTAL 294 8756,837
TAM
$376B $48B
ADDRESSABLE WORLD MARKET OPPORTUNITY
MAGENTA FINANCIAL PROJECTIONS
MAGENTA FINANCIAL PROJECTIONS
37 patents and patent applications, 14 trademarks (12 registered and 2 pending), as well as copyrights and trade-secrets
27 issued patents in a number of countries, and 164 patent applications distributed among 21 patent families in 51 countries, in addition to copyrights, trademarks and trade-secrets
MAGENTA IP PORTFOLIO
Changing the Way Communities Deal With Waste
INVESTMENT OPPORTUNITY
32
The Offering – US$650 mm Investment in NanoHoldings to Acquire MAGENTA
Projected 2018 sale = US$ 10.3 bnCash Return Preferred D Share = US$ 5.14 bn = 9.3 x return on investment
PROJECTED EXIT SCENARIO – 2018E projected sale (on 2018E EBITDA of US$ 687 mm) provides Series D Preferred Investor with cash distributions of:
2014 2015 2016 2017
- $650 mm
Cash Return + $5.142 bn
Investment
TRANSACTION TERMS & VALUATION
Invitation to join solely an insiders round of existing NanoHoldings ShareholdersPre-money valuation of $650 mm Acquires 49.9% of NanoHoldingsMinimum Investment US $100 million for 7.67%Senior Series D Participating Preferred
TIMELINE
Nov 30 – completion of initial due diligenceNov 30 – sign non-binding term sheetDec 15 – sign binding term sheetDec 31 – complete final due diligenceJan 21 – Review Legal documentsJan 31 – Closing & Funding
2018
Changing the Way Communities Deal With Waste
An investment in the Company involves a high degree of risk, and is suitable only for investors of substantial means who have no immediate need for liquidity of the amount invested and who can afford a risk of loss of all or a substantial part of such investment. Investors and the Company may be subject to a number of risks, including, but not limited to, no assurance of any investment return, a long-term and illiquid investment, and no commercialization of any technology. In addition, any projections or other estimates contained herein, including estimates or forecasts of returns or performance, are forward-looking statements and are based upon certain assumptions. Actual results may differ materially from the expectations presented in the forward-looking statements. Accordingly, there can be no assurance that estimated returns or projections can be realized. Each prospective investor should consult with his, her or its personal legal, tax and financial advisers and carefully consider and evaluate the risks before investing in the Company. Projections and other forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties and should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved.