CORPORATE PRESENTATION

Transcription

1 CORPORATE PRESENTATION TSX.V:STT June 2015 sttenvirocorp.com

2 FORWARD LOOKING STATEMENT This presentation may contain forward looking statements that reflect current views, including the company s objectives, projections, outlook, estimates, expectations or predictions, and contain forward looking information with respect to future events. STT Enviro Corp. cautions that such information involves risk and uncertainty and that actual results could differ materially from those contained in them. In addition, certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projections contained in them which are subject to change. Additional information about the material factors that could cause the results to differ materially, and the material factors or assumptions that were applied, are contained in STT Enviro Corp s press releases, current financial statements and MD&A for year ended 2014, all of which are available on SEDAR. 2

3 OUR FORMULA FOR SUCCESS $ 2 Environmental Options (at) Less Cost = Profits 3

4 STT ENVIRO CORP Two Areas of Business STT SYSTEMS & SOLUTIONS STT TANKS & INDUSTRIAL Environmental systems to neutralize pollutants (usually acid water) created in the ore recovery or oil recovery process. Down part of market cycle commodity cycle dependent Aftermarket services including optimization of chemical use for our clients to reduce costs and their carbon footprint. Bolted tanks with environmental advantages, especially for the oil sands. Large opportunity identified and massive growth Transload facilities for frac sand and other material handling. New business launched in 2014 New business growing rapidly 4

5 STOCK CHART * 2015 YTD Daily average share price $ 0.12 $ 0.12 $ 0.19 $ 0.28 Daily average trading volume 11,862 20,714 62, ,377 *Since March 2014 SHARE STRUCTURE Shares outstanding 47,490,525 Fully Diluted 52,165,525 STT Share Price History May 2013 May 2015 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $ 13/05/ /09/ /01/ /05/ /09/ /01/2015 5

6 STT SYSTEMS & SOLUTIONS Chemical Makedown Systems Environmental systems to neutralize pollutants (usually acid water) created in the ore recovery (in mining) and oil recovery. OUR COMPETITIVE ADVANTAGE Our scope of work usually includes the entire process: Truck Unloading Chemical Storage Flow Promotion/Feeding Makedown (wetting/mixing) Distribution Instrumentation & Controls. Cost effective modular designs Installed over 1,000 systems Own proprietary ZMI Portec Slaker technology (oil & gas) Exclusive agreement with Metso for Vertimill Slaker (mining leader) 6

7 STT SYSTEMS & SOLUTIONS The data in for the Systems Group Lifecycle support for systems customers. Supply system retrofits, components, optimization and service to improve the efficiency of systems. OUR COMPETITIVE ADVANTAGE Cost competitive system with chemical optimization = lower cost and reduced carbon footprint. System Optimization: reducing the amount of chemical usage by up to 40% Reduce customer cost Reduce customer carbon footprint Recurring revenue through our Applied Care program Patent pending Vertimill design Lime slaking reactivity mapping 7

8 REVENUE BY DIVISION BUILDING IN TOUGH TIMES Current backlog = $31.9 M $40,000,000 $35,000,000 Systems Solutions Tanks $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Forecast Revenue 8

9 STT TANKS & INDUSTRIAL BOLTED STORAGE TANKS Tanks group sells bolted storage tanks for municipal, industrial and oil and gas applications. Major new oil sands opportunity in upgraders and SAGD facilities. OUR COMPETITIVE ADVANTAGE )=$ 2 Bolted is 25 30% cheaper Construction time is 25 to 50% less Coatings last 2 4x longer No site hot work, scaffolding, cranes, paint Reduced environmental footprint Safer work and fewer workers Environmental reduced cost = customer value 9

10 INNOVATION IN THE OIL SANDS CAPP COMMERCIAL STT was recognized by Canadian Association of Petroleum Producers 10

11 THE FINANCIAL HISTORY A TURNAROUND STORY With income growth and increased margins GROSS MARGINS NET INCOME EBITDA 35% 30% 25% 20% 19% 22% 24% 26% 31% $1,200 $1,000 $800 $853 $953 $1.0M $1.2M $3,000 $2,500 $2,000 $2.1M $2.5M $2.7M $2.2M 15% $600 $1,500 10% $400 $1,000 5% $200 $2.3 M $500 0% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $ FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $0 $500 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $1,000 $1,500 $1.5M $2,000 11

12 SIGNIFICANT DEBT REDUCTION Debt reduced to $1.0 M + unencumbered working capital of $5.9 M = net positive cash position Debt $7,000,000 Long term portion of term debt Current portion of term debt Working Capital Working Capital $8,000,000 $6,000,000 $5,938,519 $6,000,000 $4,000,000 $5,000,000 $1,978,835 $1,458,955 $2,000,000 $4,000,000 $537,166 $ $3,000,000 $2,000,000 $2,000,000 $4,000,000 $6,000,000 $1,000,000 $8,295,491 $8,000,000 $ 31 Mar Mar Mar Mar Mar 15 $10,000,000 12

13 OPPORTUNITY FOR TRANSFORMATIONAL BUSINESS CHANGE Income diversification with many of the same clients The right strategic timing for acquisition offers: Corporate scale Accretive growth Increased organic growth potential Business synergies; and Diversification of revenue stream 13

14 POISED FOR SIGNIFICANT GROWTH Our growth drivers Organic Growth Low oil prices are making our bolted tanks a must consider technology in the oil business since they are 25% cheaper than field welded tanks. Major sales growth was achieved in Growth by Acquisition We have a net positive cash position which allows us to contemplate highly accretive acquisitions. Margin Growth Our highest margin business (Solutions), has grown by over 125% in four years and we continue to focus on expanding opportunities in this area. R&D Differentiation We are continually researching ways to deliver quality products with environmental benefits, at a lower cost. Internal R&D work is ongoing, the company currently has one patent pending.

15 STT ENVIRO CORP Investment Highlights Proven success of management Projected 2015 revenue up over 250% since 2010 Increased gross margins to 31%, up 63% in 5years Reduced debt by over 75% since 2010 Backlog has been rebuilt on growth in new sectors and business is set to continue growth Both continued organic growth and targeted acquisitions will provide accretive growth and shareholder upside as well as revenue diversification 15

16 Contact Us Investor Relations Corporate Offices David Deacon, CEO Tel: Holly Hendershot, Director of Corporate Affairs Tel: Milton, Ontario Tel: Richmond, British Columbia Tel: