Today & Tomorrow THE ORIGINCLEAR GROUP

Transcription

1 Today & Tomorrow THE ORIGINCLEAR GROUP

2 Safe Harbor Statement Matters discussed in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of When used in this presentation, the words designed, plan, "anticipate," "believe," "estimate," "may," "intend," "expect, future, potential and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forwardlooking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Version E 4th Quarter OriginClear, Inc. 2

3 OriginClear s Development Founded in 2007: a technology licensing company. Began trading in 2008 on OTC Bulletin Board. Technology evolution: Electro Water Separation (EWS). A breakthrough high-speed water cleanup technology using multi-function electrochemistry. Ongoing commercialization of the technology through Licensing to equipment makers. Master licensing (begun with China subsidiary). Joint Ventures. 4th Quarter OriginClear, Inc. 3

4 What is OriginClear Today? A leading provider of water treatment solutions pursuing dual strategies to support its customers. The development of a breakthrough water cleanup technology Being licensed to the $500 billion world water services market which is expected to double to one trillion dollars by 2020*. The integration of a group of profitable, well-managed water treatment companies that provide complete systems and services to meet the needs of a full range of customer requirements. The OriginClear Group * A Blue Revolution Global Water (2012) 4th Quarter OriginClear, Inc. 4

5 2015: Technology Status EWS technology now scaled and proven. Expert team pursuing partnerships worldwide. Now a separate P&L unit: OriginClear Technologies. Wins in China, Europe, US: OriginClear (HK) subsidiary now funded by a Chinese manufacturer. French JV (Ennesys) at product stage, $50 million valuation. First oil & gas licensee (PACE) active in Marcellus. Strategic discussions with majors in Bakersfield area. Sour well remediation being proven in Texas. 4th Quarter OriginClear, Inc. 5

6 Why A Group? Why is OriginClear building a group of water treatment companies? Answer: a historic market opportunity. Global water services industry to double to $1 trillion by 2020.* US Market: $130 billion (2010), subsectors growing up to 20% annually** This is a highly fragmented and regulated industry with limited competition for complete service providers *** These factors combine to create an opportunity for increased company value for the stockholders. * A Blue Revolution Global Water (2012) ** American Water Works Association (2011) *** Heckmann to Acquire Thermo Fluids (2012) 4th Quarter OriginClear, Inc. 6

7 US Growth Drivers Corporate specialization: End-users focus on their core business and outsource water treatment. Shortages & low quality feedwater sources: End-users adopting alternative sources requiring more treatment. Regulation & risk management: More stringent regulations with associated risks for failure. Higher demand for complete water solutions: Partial solutions lead to failures and higher risk. Water reuse & recycling: Increasing emphasis on environmental sustainability. * Industrial Water Services, Global Water Intelligence (2015) 4th Quarter OriginClear, Inc. 7

8 Fragmented US Services Market Numerous local and regional solution providers with Established customer bases, high percent of repeat clients. Specialization: potable, power, process, waste Strengths: membranes, media, chemicals Limited sales representation. Companies are owner-operated, entrepreneurial. This is a highly fragmented and regulated industry with limited competition for complete service providers * * Heckmann to Acquire Thermo Fluids (2012) 4th Quarter OriginClear, Inc. 8

9 The Group of Companies Innovative, comprehensive water treatment companies. Provide systems and services as a total solution for water treatment in a wide range of industries. Meet the full range of technology and service requirements. Hallmarks: Quality and performance. Exceptional customer care. Complete responsibility for solution. 4th Quarter OriginClear, Inc. 9

10 Consolidating The Customer Scenario: One outsourcing customer (yellow triangle), serviced by four regional service companies (circles), consolidated in the OriginClear Group of Companies. 4th Quarter OriginClear, Inc. 10

11 Complementary Specializations Note: overlap is expected between companies. 4th Quarter OriginClear, Inc. 11

12 Acquisition Opportunity Major opportunity for fragmented service providers to join up for cooperation & financial benefit: Complementary high-growth markets and technologies. Consolidate the corporate outsourcing customer. Develop U.S and global regional markets. Share potential business projects. Share technologies and expertise. Economies of scale over time. 4th Quarter OriginClear, Inc. 12

13 The Ideal OriginClear Company Revenue & Growth Revenues between $5-20 million and growing, with opportunities for high growth. Net Profits Long-term, stable profitability. EBITDA in 15%+ range. Leadership Leaders committed for the duration, with a solid management team. Service-Intensive The company services water end-users and is totally dedicated to customer service. Culture Relentless pursuit excellence. Employee development high priority. Complementary Well-developed specialization to complement other companies in the group. 4th Quarter OriginClear, Inc. 13

14 Acquisition, Not Integration Our plan is for acquired companies to retain their own Brand identity, Separate operations, Decision-making independence. No requirement to carry our technology. We do plan to advise, pursue long term efficiencies: Share expertise e.g. Internet lead generation. Develop group buying, financing power. 4th Quarter OriginClear, Inc. 14

15 What s The Upside? Benefits to OriginClear shareholders: Building revenue & profits in a public company. Greatly increasing company valuation & shareholder value. Benefits to the owners: Owner-operators get a publicly-traded ownership platform. (addressing exit and liquidity concerns.) Potential gains from shareholder value in OriginClear. Companies gain network effect in technology & opportunities. Build team efficiency and financial strengths over time. 4th Quarter OriginClear, Inc. 15

16 Acquisition Structure Structure could be all stock or cash and stock. More stock = higher potential valuation, price gain. More cash = more immediate tax liability. Typical structure: Stock for stock exchange tax liability deferred until stock sold. OriginClear Preferred converts to Common over three years. Employment agreement over the same three years. Potentially very high leverage of common stock value. IMPORTANT: all parties must rely on their own professional tax and legal advice. 4th Quarter OriginClear, Inc. 16

17 A Case History Solar3D Read a recent Pacific Coast Business Times article describing Solar3D s acquisition history. OriginClear makes no claim that its acquisition strategy will result in similar performance of its common stock. 4th Quarter OriginClear, Inc. 17

18 M&A Plan of 2015 FIRST ACQUISITION COMPLETE IN RECORD TIME. A stable, profitable, fast-growing company Progressive Water Treatment (Dallas): Terms agreed 21 July Definitive Agreement announced 4 August Closed on October 1, Scouting a second acquisition. 4th Quarter OriginClear, Inc. 18

19 OriginClear Inc. Three Year Plan 4th Quarter OriginClear, Inc. 19

20 Year One Group Complete first and second acquisition. Material revenue and EBITDA contribution expected by EOY Technologies Complete current R&D through Gen 3 (Multi-chamber, modular system). Complete technology transfer package. Complete current licensing agreements (US and Asia). Close commercial sales of pilot equipment. China subsidiary funded and operating. Require ISO-grade manufacturing develop a certified mfr. 4th Quarter OriginClear, Inc. 20

21 Year Two Group Up to five acquisitions potentially some non-us. Overall profitability achieved. Plan to list on a national exchange (e.g. NASDAQ or NYSE MKT) Logistical integration of companies. Technologies First Global Joint Venture in a key application of the technology. Gen Four (virtualization, cloud controls) in field testing. Build out China subsidiary for a potential IPO. 4th Quarter OriginClear, Inc. 21

22 Year Three Group Acquisitions program largely complete. Excellent growth of top and bottom lines. Implement technical and market integration. Institutional analysts following the company. Technologies Most key applications under master licensees or JVs. Technology fully mature and cloud-managed. EWS recognized as key technology in waste water clarification. 4th Quarter OriginClear, Inc. 22

23 Management Team Group Riggs Eckelberry President & CEO/Co-Founder Bill Charneski President, OriginClear Group Eric Sandler Controller Technologies Jean-Louis Kindler President, OriginClear Technologies Nicholas Eckelberry Chief Inventor & Co-Founder Lee Portillo Vice President of Engineering Mael Disa-Vingataramin VP Licensing & Bus Dev 4th Quarter OriginClear, Inc. 23

24 Contact Information Bill Charneski President, OriginClear Group. Corporate Acquisitions 4th Quarter OriginClear, Inc. 24