Construction & Demolition Waste turned into Concrete Brick Mixture

We convert waste to raw material with a broad spectrum of product applications in building constructions

About us and Know how ERCTech

ERCTech "Effective Recycling Concrete Technology" brings revolutionary solutions to the construction industry along with a comprehensive solution to the environmental burden of dismantling inert construction and demolition waste across the whole world.

ERCTech the most economical and at the same time „Eco-Friendly" material in the world achieves financial savings of between 15-60% for standard products depending on usage in various sectors of construction business

ERCTech have developed a unique process making production of concrete 25 - 35% cheaper while solving environmental burden

ERCTech have developed revolutionary solution to the construction industry while solvingenvironmental burden of depositing inert construction and demolition waste in landfills

Our process results in eco-friendly material offering savings of between 25-35% on standardconcrete production and prefabricates across various sectors of construction business

ERCTech have 54 pending patents covering technological process, mixture recipes and related know-how and have received certificates of full compliance with industry standards for concrete mixtures

We are currently setting up small-scale production line in collaboration with a major production &distribution partner and will engage in full scale production within CR over the next 3-6 months

Recycling of Construction & Demolition Waste (CDW) into main stream building materials remains to be tackled world-wide

The problem• Substantial financial & ecological costs are involved in transportation and deposition of CDW• More than 85% of CDW end up in landfills representing significant financial and ecological burden• Only less than 15% is re-used for landscaping, often illegal, or as fillings under pavements• It is of limited use due to instability and/or are often non-compliant with eco-toxic limits

15%

Sorting - Crushing

85%

Interim storage

Re-use

Landfills

Recycling is considered to be a complex use for final products

We recycle inert CDW by replacing up to 100% of sand and crashed stone in concrete mixture though a unique patent-pending process

The solution• We recycle inert CDW into concrete mixtures replacing up to 100% of sand and crashed stone• Processing rubble consisting of bricks, concrete, ceramics & sanitary products, roof tiles etc.• The process concerns adding commonly used Nano-material in a highly controlled way structurally

strengthening CDW particles making the resulting concrete stable, inert and water resilient• No added chemicals allowing for repetitive recycling completely eliminating ecological burden

• 25-35% cheaper concrete mix• Complete elimination of eco-burden• Closed loop CDW recycling

ERCTech solution offers industry-redefining financial and ecological benefits reshaping concrete production & waste management

Industry-redefining financial benefits• 25-35% cost savings over standard concrete production• In the highly competitive industry, such saving translate to about 5-10x the achievable margins!!!• Monetisation of large CDW quantities deposited over decades and/or newly produced rubble• Elimination of CDW and concrete transport from/to the construction site

Huge positive environmental impacts• Complete elimination of CDW landfills and release of hazardous substances to the environment• Closed loop near 100% recycling of building material across the industry• Additionally, on-site CDW processing drastically reduces need for transport both ways:o CDW remains on site and only non-usable fractions are removed and deposited outside citieso Transport concrete logistics reduced to minimum as the production takes place right on the site

„E6“ Effective Recycling Concrete Technology

• Environmental• Efficiency• Economical

✓ We provide unique technological know-how to produce the cheapest building material in the world for all kinds of construction activities, effective on all continents

✓ Cement content in our concrete mixtures is lower for at least 30% than standard natural aggregates and sands

✓ Products made using our technological solution and Know-how are fully recyclable, ensuring continuous cycle (LCA - Life Cycle Assessment) of product life in terms environmental impact.

✓ We reduce the amount of valuable material today only lying in landfills, because it can be fully and effectively used

• Effective• Evaluated• Energy Savings

We are making an effort creating a rule “Definitely Stop Landfilling” for the whole world

Applicability is broad-ranging thanks compliance with industry standards for concrete quality grades and excellent properties

• Concrete quality grade CB 1/1–11• Full scope of applicationso Prefabricationo Transport concreteo Sprayed mixtureso Manual processing

Application cases include both residential and industrial building without constraints

Unprecedented market potential across EU and globally

Concrete production• EU produces about 280 million m3 of concrete• At average price per m3 of EUR 70 the market is worth about EUR 20 billion• It`s a high entry barrier / CAPEX intensive industry with prevailing profitability margins of 3-5%• Cost of logistics limits transportation of concrete to to about 100-200 miles radius• There are about 5,500 companies and 8,000 production sites across Europe producing ready-mix

and pre-cast concrete (prefabricates) employing in total over 160,000 employees

Waste (CDW) production• EU officially produces about 868 million tons of CDW p.a. of which usable (inert or “mineral”) waste

represents about 1/3 or about 290 million tons (non-official figures suggest about double)• World-wide • Average cost of transport and CDW depositing (including productive re-use in landscaping etc.)

averages EUR 13-20 per ton• About 1.6 ton of inert CDW is needed per m3 of concrete to replace 100% of sand & crashed stone

Addressable market• Theoretical annual production using all annually produced inert CDW is over 180 million tons of

concrete p.a. (based on the official figures and not including past landfill deposits)• Assuming long-term goal of only 5% market share of concrete mixtures, the market opportunity is

about EUR 1 billion in terms of revenues OR at least EUR 250 million in net profit (EU only)• World-wide opportunity is about 5-10x bigger

Cost of disposing of CDW is increasing• Increasing costs of transportation together with municipal and national taxes increasingly imposed

across EU are driving up costs of CDW disposal• Bulk of the inert CDW is used in landscaping or ends up in landfills with very low or negative value• Only effective recycling into building material (concrete mixture) offers monetisation of CDW

EU regulatory agenda • Some EU countries have strict requirements on CDW recycling in place already since 2011• All other EU member states will be obliged to recycle at least 70% of non-hazardous CDW by 2020• The regulation will apply to Czech Republic and other recent-accession countries by 2024• A complete ban on landfilling will apply across EU countries by 2030

Market opportunity is driven both by economic benefits as well as by growing environmental agenda across EU & other major markets

There is no comparable solution and direct competition in terms recycling inert CDW into concrete mixtures is practically non-existing

Key known alternative producers

• Pastor S.A. (Spain) uses recipes of mixture concrete allowing for 30-80% replacement but at the cost of increasing cement content by about 25-30%. Main application area is prefabricated concrete blocks

• Brandenburgische Technische Universität (Dr. Angelika Mettke) in cooperation with FG BaullichesRecycling (Germany). Pilot projects with recipes using 41% of CDW and about 20% increased cement content

• Cape Brick (New Zeland) manufactures concrete masonry units containing 70% of recycled materials. The production is limited to about 50,000 m3 of concrete p.a.

None of the current solutions is comparable with the ERCTech solution

• To our knowledge, although there have been hundreds of attempts both at universities and by commercial entities to recycle CDW into concrete mixture, none has achieved efficiency any close to 100% (in terms of replacing sand and crashed/natural stones) while ensuring quality and consistency

• Simple replacing affects quality of end products and severely limits overall economics, constraining the produce to a few low-value use cases such as pavements or road backfills

Business model and go-to-market approach

Key financial assumptions underpinning the business plan• ERCTech helps allows concrete mixture producers to achieve 25-35% cost reduction, representing

cost savings of between EUR 15-21 per m3 of concrete• We will approach markets always through production & distribution and/or licensing partners,

not engaging in manufacturing or sales activities• Subject to the type of partnership, size of the geography and significance of the partners we will

appropriate between 15-50% of the total realised contributions to their respective net profits• This translates to between EUR 2.25 and EUR 10.5 per m3 of concrete produced

Partnering in target markets• Where achievable, we shall form a joint-venture with selected regional partner(s) allowing us to

maximize share of the benefits while asserting control over quality and scale of production• Such arrangements should typically allow us to appropriate 25-50% share on the generated

savings in exchange of providing the appropriate regional licence• Where more appropriate we might also enter licensing agreements, limiting our share to perhaps

10-15% of the generated income due to a more limited control

Patented technological process, mixture recipes and know-how

• Technological process solving CDW recycling into concrete mixtures

• First-class fresh and hard concrete with a closed structure usable for all types of buildings

• Sorting, preparation and sanitization of CDW into recyclable mixtures

• Processing and grading of fractions

• Mixing technology for application on a construction site or for prefabrication

ERCTech have 54 pending patents for processing of CDW into concrete mixture and have received certificates of full compliance

Full certification of the concrete mixtures by state authorities

• We have received full certification from Technical and Test Institute for Construction Prague (TZUS), http://www.tzus.cz/en/

• Construction & technical certificate, Test protocol for product type and Production management system certificate

• Protocol of the result of the production management system certificate

• Test protocols for thermal conductivity coefficient, alkali-silica expansion, eco-toxicity, water resistance etc.

Processing plant products

Continuous R&D process

Our strategy is not built on just one productWe continue in R&D process to develop and implement applications for:

• Construction and thermal insulation composite - Ready mix concrete that will meet the thermalparameters according to EU standards (without additional thermal insulator such as polystyrene,mineral wool, PUR etc.)

• Heating application of the concrete – Thermal blocks (radiators) which use electricity from 12 Vto 230 V for heating buildings and buildings with great energy savings (combined with solarenergy)

• Thermal Energy Storage - Utilization of waste energy from industry or central heating complexor power plant or solar thermal energy for storage and subsequent heat distribution, or for coldproduction

• 3D printing application - Concrete mixes for robotized 3D printing technology for buildingconstruction

The founders have received major international and national awards for their invention and know-how testifying to the potential

“Best Technology and Product” main prize for 2016 awarded by Europen Quality Association for Recycling (EQAR)

EQAR - European Quality Association for Recycling e.V. is the European rooforganization of national quality protection organizations and producers of quality-controlled recycled building materials from the EU member states.

“Best product from secondary raw materials” main prize for 2017 awarded by the Ministry of Industry of the Czech Republic

“Best Environmental Technologies” main prize awarded at an international scientific conference on “Engineering for Environment Protection – TOP STUBA”, Slovakia, 2016

Testimonials by academic authorities and experts

„…ERCTech are dealing with problems related to the recycling of inert CDW. The ERCTech’s unique solution is a huge benefit for the whole society across the planet.“

Doc. Ing. Karol Grünner, PhD• STU - Slovak Technical University - Faculty of Civil Engineering• ČVUT – External professor , ŽU v Žilina - Stavebná fakulta - External professor • ZRSM – founder of association for Recycling of C&DW in Slovak Republic

„ERCTech solution directly meets the requirements and conditions of the greatest efficiency of the processing and use of CDW under the new Waste Act, using almost 100% of CDW.“

Doc. Ing. Miroslav Škopán, CSc.• VUT Brno - Faculty of Mechanical Engineering - Head of sub-department• ČVUT Praha - External professor • ARSM* - president of Association for Recycling of C&DW in Czech Republic• EQAR - Executive Board of EQAR - European Quality Association for Recycling

We are in a close relation with experts validating our solution and alignment with industry standards

Thank you for your attention!

ERCTech the production and quality management system is secured by means of • ISO 9001, ISO 14001, OHSAS 18001 and PN PGT 206

• Corporate Standard for Production Quality Management• CE certificates of complience

• Control tests done by the manufacturer

Phone : +420 603 201 285 , +420 602 734 376, E-mail: info@erctech.eu