|
This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions, and any other statements other than statements of historical facts.
These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission.
All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
2012 BMC Global Resources & Infrastructure Conference, LondonSeptember 12, 2012
Warren Zhao, Chairman & Co-CEO, Co-Founder• 24+ years of management skills, technical and electric engineering expertise in Environmental
Protection industry • Bachelor’s and Master’s degrees in electrical engineering from Northwestern Polytechnical University of
China
Philip Fan, President and Co-Founder• 23+ years of management skills, technical and engineering experience in water resources and
environmental sectors• Bachelor’s and Master’s degrees in environmental engineering from Hunan University and Master’s
degree in civil engineering from Louisiana State University (LSU)• Registered professional engineer (PE, inactive) in the U.S. since 2001Peter Dong, CFO and Co-Founder
• 18+ years of management skills and finance expertise • Bachelor’s degree in computer science from Nanjing University of Aeronautics and Astronautics and
Master’s degree in economics from Renmin University of China
Gavin Cheng, Co-CEO• 25+ years of management skills and engineering expertise• Bachelor of Engineering and Master of Engineering degrees from Nanjing University of Aeronautics and
Astronautics• Executive MBA from Peking University in 2001
Experienced Leadership
Our Combined Strengths Differentiate us from our Competitors and Constitute a Solid Foundation for Future Growth:
Technologically Competent and Technology Oriented
Well Established Presence in Large and Growing Market
Significant Market Demand for Growth
Extensive Market Knowledge, Strong Reputation and Relationships
Strong Projects Backlog and Pipeline
Highly Skilled Teams of Technical Professionals and Experienced Leadership with Proven Track Record of Execution
Key Strengths
Tri‐Tech – A Leading Technology Provider to Water and Environmental Industries
CoreValue
Organization
• Municipalities, MWR (Ministry of Water Resources
• SOEs, such as CNPC, SINOPEC, PetroChina & CNOOC
• BUIDCo, QAPCO, Oxford Property
• Advanced Technology in Industrial Wastewater Treatment & Zero Liquid Discharge
• Seawater Desalination• Membrane Technology Advancements in Water
Related Industries
• Headquartered in Beijing• 446 employees in 12 subsidiaries• Branch offices across China, India, and the U.S.,
entering lucrative water treatment/processing markets in India, and other Asian/Middle East countries.
• A 40 acre R&D and manufacturing facility under construction in Tianjin
Target Market• Primary Markets: China
• Second Markets: South Asia, Middle East and North America
Selected CustomersVision
• Strategically positioned as a leading provider of technologies to water related industries in both China and global markets
Core Competencies
Industrial Wastewater Zero Liquid DischargeAddressable Market
• Identified $150 Million in Potentially Achievable Business Opportunity
• Water Recycling and Reuse
Seawater DesalinationAddressable Market
• $3.5+ Billion Domestic (3 Years)• Contributing to 15% of New Water Resources During the 12th
Five-Year Plan
Advanced Water & Wastewater TechnologiesMunicipal Water Supply & Sewage TreatmentIndustrial Water Processing & Pollution ControlWater Resource Monitoring & Management
System Integration with Membrane ApplicationsAddressable Market
• Water Purification• Sewage Treatment• Water Recycling & Reuse
Advancements in Water Related Sectors
Spectrum• Water and Wastewater Treatment• Water Recycling and Reuse• Water Resources Management & Irrigation
Competitive Advantages • Advanced proprietary technologies and products• Experience in large project execution• Superior customer bases
Feed
Feed
Membrane layer 1
Membrane layer 2
Steady Growth in Revenue & Net Income$M
illio
n
8.416.8
43.5
85.9
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
Revenue
E
1.7
3.9
7.1 8.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2008 2009 2010 2011 2012E
Net Income
$Mill
ion
128
12.1
Sector Significant AwardsContract Value
($Mil)Water
TreatmentOrdos Water Treatment Plant Phases I and II (UF + NF) 60
Water Treatment System for a Canadian Hotel (UF) 0.7
Sewage and Industrial
Wastewater Treatment
Three sewerage collection system and sewerage treatment plants projects for three townships in India
42
Reused Water Quality Upgrade Project for Wastewater Treatment Plant of TAEZ
1.5
Water processing unit contract for a steel plant in Mexico 3.6
Solid Waste Disposal
Solid Waste Sanitary Landfill Project for Xinle, Hebei Province 3.7
Water Conservancy
32 flash flood monitoring and forecasting projects in 28 Chinese provinces and municipalities, were implemented during 2011
14
Seawater Desalination
Seawater desalination unit contract in Qatar (MED-TC) 8.3
Industrial Production
Safety
Yanchang petroleum Group production security system and emergency command center contracts
4
Selected Project Portfolio
Industrial Growth Drivers
China 12th Five‐Year Plan on Environmental Protection • $536 billion for environmental protection• Add 42 million tons of daily sewage treatment
capacity, 85% treatment rate by 2015Continuously increase the use of recycled water
• Limit 635 billion cubic meters annual consumption by 2015
Drinking Water Treatment, New Safe Drinking Water Standard GB5749‐2006
• 71 New water quality indexes added• RMB 220 billion for upgrading of purification
facilities
State Council Circular No. 1, RMB 4 trillion in water conservancy over next 10 yearsNewly Initiated National Flash Flood Forecasting Program in 1800+ counties throughout China to be completed by 2013Strong Fund Allocation to flash flood projects
$69 billion in industrial wastewater treatment during 12th Five‐Year Plan Period
• Zero Liquid Discharge (ZLD) for industrial wastewater treatment particularly in North and Northwest China
• Seawater Desalination capacity will be 2.2‐2.6 million m3/d by 2015 in China, quadruple of that by end of 2011
0.62 1.18 1.79 1.79 2.89 3.48 4.96
13.0415.0718.39
26.13
6066
0
10
20
30
40
50
60
70
Robust Growth for Seawater Desalination Capacity in China
10,0
00 m
3/d
Market Cap (9/10/2012) : $31.8 MShares O/S: 8.21 million Float : 55.3% of O/STotal institutional Positions: 20 institutional holders (14 North Americans), 14.8% of O/S;18 mutual funds, 9.3% of O/S Current % of O/S held by Top 10 institutional holders: 13.8%
Regional Institutional & Mutual Funds Concentration
North America 7.9%
Europe 16.1% Asia
44.7%
Stock Ownership (as of June 2012)
Projects Backlog and Pipeline
11.5
59.6
94.579.2
89.7
127.1
152.2
0
20
40
60
80
100
120
140
160
12/31/09 12/31/10 12/31/12 6/30/12
Backlog
Pipeline
Total backlog of $79.2 million (as of June 30, 2012)•$41.9 million (Municipal)•$12.2 million (Water Resources)•$25.1 million (Industrial)
Projected Pipeline of 152.2 million (as of June 30, 2012)• $89.7 million (Municipal)• $23.1 million (Water Resources)• $39.4 million (Industrial)
$Mill
ion
*
* Tri-Tech did not issue the projects pipeline as of 12/31/09
Global Footprint & Peers
Key Global Customers • Jasper Park Lodge, Canada• Bihar Urban Infrastructure Development Corporation
Limited, India• Qatar Petrochemical Co.• Ambbio in Mexico• CNOOC• CNPC Nigeria
Competitors in International Markets• GE • IDE• Veolia• Aqua-Tech
R&D Activities
Tianjin Baoding R&D Center Under Construction
• 40 Acres Land Property
• Phase I – completed 20,000 square meters construction
Forward Osmosis Products Localization
• Landfill Leachate Treatment Feasibility Study
• Localization of Personal Hydration Package
MBR – Membrane Technologies
Groundwater Monitoring Remote Terminal
Unit Software Upgrade
Drought Information and Decision-Making Systems
Appendix
Milestone
2012
2011
2010
2009
• Founded as a provider of technical solutions and services for water resource management.
• IPO on NASDAQ Capital Market and became the first public Chinese company providing solutions to water resources engineering, municipal wastewater treatment and industrial pollution control.
• Raised $33.1 million in gross proceeds in secondary offering. • Established Tri-Tech U.S and Tri-Tech India • Acquired BSST and began to provide services in industrial sectors• Won $60 Million contract for Inner Mongolia Drinking Water Treatment Plant
• Acquired J&Y International Inc. a Wisconsin water company and began to penetrate into seawater desalination, water recycling and zero liquid discharge of high salinity wastewater.
• Acquired a majority ownership of Yuanjie Water and expanded water supplying systems for high-rise buildings.
• Won Total $51 million international contracts in India, Qatar and Canada
2002
• Won an aggregate of $24.6 Million contracts in Water Resources Management• Won $3.6 Million water processing unit contract for a steel plant in Mexico• Awarded Top 10 Chinese Emerging Water Enterprise
Income Statement – Six Months ended June 30, 2012 and 2011
Period Ending 30-Jun-12 30-Jun-11
Total Revenue 42,262 37,755
Cost of Revenue 31,220 27,441
Gross Profit 11,042 10,314
Operating Expenses
Selling General and Administrative 7,876 4,735
Others 80 67
Operating Income or Loss 3,086 5,512
Net Income Applicable To Common Shares 2,809 3,461
In ‘000 USD
Diluted EPS $0.34 $0.42
Balance Sheet Period Ending 30-Jun-12 31-Dec-11AssetsCurrent Assets
Cash And Cash Equivalents 11,287 14,024Net Receivables 48,236 29,904Inventory 6,516 7,706Other Current Assets 9,708 6,121
Total Current Assets 75,747 57,755Non-Current Assets
Long-Term Unbilled Revenue 57,184 59,299Plant and Equipment, Net 1,543 1,437Construction in Progress 4,713 4,567Intangible Assets, Net 11,180 11,610Long-Term Restricted Cash 2,554 2,542Goodwill 1,441 1,441
Total Non-Current Assets 78,615 80,896Total Assets 154,362 138,651
LiabilitiesCurrent Liabilities
Accounts Payable 49,053 41,777Short/Current Long Term Debt 14,628 10,784Other Current Liabilities 3,145 1,887
Total Current Liabilities 66,826 54,448Long Term Debt - -Other Liabilities 3,285 3,456Minority Interest 5,862 6,018Total Liabilities 75,973 63,922 Stockholders' Equity
Total Stockholder Equity 78,389 74,729
In ‘000 USD
Contact Information
Tri-Tech Holding Inc.Phil Fan, PresidentJanice Wang, IR Manager+ 86 010 5732 3696+ 86 010 5732 [email protected][email protected]
Auditor: Marcum Bernstein & PinchukContact: Drew BernsteinEmail: [email protected] York City, NY646.442.4811
Legal Counsel: Kaufman & CanolesContact: Bradley A. HanebergEmail: [email protected] East Cary Street, Suite 1400Two James CenterRichmond, Virginia 23219T (804) 771.5700F (804) 771.5777
Michael Gaugler Dmitriy Shapiro
Brean Murray & Carret Co., Inc.212-702-6539
Global Hunter Securities, LLC646-264-5606
Analyst Coverage: