Title: NEXUM ASIA
1NEXUM ASIA
September 2008 Investor Presentation
2Disclaimer
Certain statements in this presentation may
constitute forward-looking statements which
involve known and unknown risks, uncertainties
and other factors which may cause the actual
results, performance or achievements of Nexum
Asia Corp. (NAC or the Company), or industry
results, to be materially different from any
future results, performance or achievements
expressed or implied by such forward-looking
statements. When used in this presentation, such
statements use such words as anticipate,
believe, plan, estimate, expect,
intend, may, will and other similar
terminology. These statements reflect current
expectations regarding future events and
operating performance and speak only as of the
date of this presentation. Forward-looking
statements involve significant risks and
uncertainties, should not be read as guarantees
of future performance or results, and will not
necessarily be accurate indications of whether or
not such results will be achieved. A number of
factors, including the fact that the Company is
in the development stage and has a limited
operating history, could cause actual results to
differ materially from the results discussed in
the forward-looking statements. Any estimates
and projections contained herein have been
prepared by the management of the Company and
involve significant elements of subjective
judgment and analysis which may or may not be
correct. The Company does not make any
representations or warranty, express or implied,
as to the accuracy or completeness of the
information contained in this memorandum, and
nothing contained herein is, or may be relied
upon as, a promise or representation, whether as
to the past or the future. This memorandum does
not purport to contain all the information that
may be required to evaluate such transaction and
any recipient hereof should conduct its own
independent analysis of the Company and its
subsidiaries and the data herein contained or
referred to herein. The Company does not expect
to update or otherwise revise this memorandum or
other material supplied herein.
3Introduction
- Management
- Challenges for Ethanol Industry
- Nexum Model
- Business Opportunity
- Structure
- Investment Opportunity
4Management
- Board of Directors
- Alexander Kopp, CEO Nexum Energy Corp., Canada
- Kyu Hong Park, Vice President SK EC, Korea
- Marshall Farris, Partner Ascenta Group of
Companies - Dr. Uwe Sollfrank, CEO Holinger AG, Switzerland
- Others, TBD
- Executives
- Alexander Kopp, CEO
- Fraser Mackay, Executive Vice President
- CFO, TBD
- COO, TBD
- Detailed Management Bios start at Page 41
5Conventional Bio-Ethanol Plant and the Challenges
- Consumes more Energy than it provides
- No sense to use Fossil Fuel to produce
Renewable Energy - Creates Instability in the food pricing markets
- Environmental Nightmare due to enormous Water
usage - Negative Green House Gas Balance
- Increased Feedstock Prices and Shortage in
Livestock Feed - Input and Off-take Commodity Risks
- Not sustainable arable land Nutrition
depletion
6Challenges for Ethanol Plants
7The Nexum Model
8Three Proven Processes
9Strategic Partners
- SK EC, Korea
- EPC Contractor for Nexum Projects
- Global Presence in EPC Business
- Refineries and other industrial Facilities
- US 12.0 Billion in Sales (2007)
- SK EC belongs to SK Group
- SK 2nd largest Group of Companies in Korea
- US 81.0 billion in Sales (2007)
- Engineering, Procurement and Construction
10Strategic Partners
- GEA-Wiegand GmbH Germany
- 100 years of experience in dehydration and
ethanol technologies - GEA Group operates in
- gt 50 countries
- 19,500 employees
- US 8 Billion in Sales (2007)
- Designed, manufactured and supplied gt 25 ethanol
plants - Current shareholder in Nexum Energy Corp.
11Strategic Partners
- Holinger AG, Switzerland
- Anaerobic digestion and biogas technology
- 70 years in wastewater and energy recovery
- Leading engineering company in anaerobic
digestion - Designed and supplied gt 100 anaerobic digestion
plants - Current shareholder of Nexum Energy Corp.
-
12Reasons to Consider Nexum Model
- Lower Production Costs
- Reduced Risk Profile
- Energy Independent
- Eliminates the Use of Fossil Fuel
- Increases the Net Energy Value of Ethanol 10 fold
- Use of multiple feedstock types
- Reduces VOC Emissions by 95
- Will recover up to 60 percent of the nitrogen
used to grow the corn - Reduces the water consumption up to 50
- Reduces green house gas emissions from the
ethanol process by 95 - Details on the above start on Page 31
13Nexum Asia
- Business Model
- Setting up Subsidiaries in South Asian Countries
to Joint Venture with a local Partner - Joint Venture will own and operate Energy
Independent Biofuels Facilities - Joint Venture will secure Land for the purpose of
growing Feedstock for the Biofuels Facility - Business Showcase in the Philippines
- Same Business Model for other Countries as
decided by Nexum Asia
14Market Opportunities
- New Ethanol Projects in Asia
- Market demand 300 new plants over the next 5 -10
years - Initial Nexum Target - 9 Plants (3 Market Share)
- Existing Ethanol Facilities Asia
- 50 existing Plants (Nexum Process applicable)
- Other Organic Waste Streams for Energy Production
- Unlimited Market (Nexum Process Applicable)
15Market Opportunities
- New Ethanol Projects in Asia
- Mandatory Markets
- Philippines, 10 Ethanol Blend by 2011
- Construction start of at least ten 200,000 litres
per day plants in the next 2 years - Vietnam
- Thailand
- Indonesia
16Market Opportunities
- Existing Ethanol Facilities
- Over 50 existing ethanol facilities
- De-risked business model by adding the Nexum
technology to existing facilities - Low Cost and Energy Independent Ethanol
Production
17Market Opportunities
- Other Organic Waste Streams
- Agricultural Waste
- Biogas Projects with Energy Crops
- Food Processing Industry
- Slaughter House Facilities
- Municipal Solid Waste
18Investment Opportunity
- Nexum Asia Corp.
- Hong Kong based Company
- US4.0 Million Initial Seed Capital
- Business Development and setting up Subsidiaries
- Nexum Philippines
- Nexum Vietnam
- Nexum Thailand
- Nexum Indonesia
19Share Structure Nexum Asia
- Nexum Energy Corp. 7.5 million shares
- Ascenta Group 2.5 million shares
- Held for future management 1.0 million shares
- Round 1 financing 2.0 million shares
- (US4,000,000 _at_ US2.00/share)
- Warrants issued None
- Options issued None
- Fully Diluted 13.0 million shares
- Round 2 financing (October, 2008)
- (US42,000,000 _at_ price TBD)
-
20Structure
NEXUM ASIA
NEXUM PHILIPPINES
NEXUM INDONESIA
NEXUM VIETNAM
PROJECT P1
PROJECT V1
PROJECT I1
PROJECT P2
PROJECT V2
PROJECT P3
CASSAVA CHIPS FACTORY
21Nexum Philippines
- Nexum Philippines Corp. currently being
incorporated - Nexum Philippines will JV with Local Partner(s)
to develop, design, build and operate Energy
Independent Biofuels Facilities. - Either Partnership in Nexum Philippines or on a
Project by Project basis - Multiple local partner discussions underway
22Nexum Philippines
- Activities
- Incorporation and Seed Capital by Nexum Asia
- Secure Land for Feedstock
- Secure Land for Cassava Chips Factory
- Conduct Feasibility Studies on different
locations for Bio-Ethanol Facility and for
Cassava Chips Factory - Complete Budget Price for 200,000 liters per day
Facility - Complete Business Plan for Nexum Philippines
- Complete Business Plan for Project P1
- Equity Raise for Cassava Chips Factory
- Equity Raise for Project P1, P2, P3
23Nexum Philippines Project P1
- Requirements
- 10,000 HA Land for Feedstock Production
- 150,000 MT Cassava Chips
- Production
- 70 million Litres Ethanol per year
- 8 MW Surplus Electricity
- 25,000 MT of Organic Fertilizer
- 100,000 MT CO2e Emission Reduction Units
24Nexum Philippines Project P1
- Project Costs
- US7.0 MM for PM Engineering
- US50.0 MM for Procurement
- US28.0 MM for CM Construction
- US25.0 MM for Soft Cost
- US110.0 MM Total Project Costs
- Project Financing
- US35.0 MM Equity (32)
- US75.0 MM Debt (68)
25Nexum Philippines Project P1
- Project Economics
- US67,000,000 Net Revenue
- US37,000,000 Production Operating Cost
- US30,000,000 Operating Income (EBITDA)
- 27.3 ROI (EBITDA)
- Assumption
- Feedstock Cost US160.00/MT FOB Plant (US10.00
in Price Change equals US1.5 MM in EBITDA) - Ethanol Sales Price US0.80/litre plant gate
(US0.01 in Price Change equals US0.7 MM in
EBITDA)
26Nexum Philippines Project P1
- Activities
- Finalizing MOU for JV with local Corporation
- Secure 10,000 HA of planted Cassava
- Secure 30,000 HA of land to start planting
Cassava - Finalize MOU for Ethanol Off Take
27Capital Requirement
- Seed Capital - US4.0 Million in Nexum Asia
- Incorporation Nexum Asia
- Incorporation of 100 owned subsidiary Nexum
Philippines - Financing Round 2 - US42.0 Million
- US35.0 Million Equity for Projects P1 P2
- Based on 50/50 JV with Local Partners
- US2.0 Million Equity for Cassava Chips Factory
- Based on 50/50 JV with Local Partners
- US5.0 Million Fees Working Capital
-
28Equity Requirement
MM US
- 4.0
- 20.0
- 2.0
- 20.0
- 20.0
- 20.0
- 20.0
- 20.0
- 2.0
- 20.0
- 20.0
- 20.0
- 2.0
Incorporation Development
US46 MM Private Placements
Project P1
Cassava Chips Factory
Nexum Philippines
Project P2
Project P3
US144 MM IPO
Nexum Asia
Project V1
Project V2
Nexum Vietnam
Project V3
Cassava Chips Factory
Project I1
Project I2
Nexum Indonesia
Project I3
IPO
Cassava Chips Factory
2008 2011 2013
29Expected Company Growth
US46 MM Private Placements
- 2010
- Expected EBITDA US30.0M
- Accumulative Discounted NPV_at_ 10 US153.0M
- 2011
- Expected EBITDA US63.0M
- Accumulative Discounted NPV_at_ 10 US326.0M
- 2012
- Expected EBITDA US110.0M
- Accumulative Discounted NPV_at_ 10 US568.0M
- 2013
- Expected EBITDA US143.0M
- Accumulative Discounted NPV_at_ 10 US710.0M
-
US144 MM IPO
30Thank You! NEXUM ASIA
31Reduced Risk Profile
Risk Factors Conventional Nexum
_________________________________________________
__________________________________________________
_____________________ Feedstock Dependency YES
NO Feed Stock Prices YES YES Ethanol Prices YES
YES Energy Prices (Electricity Natural
Gas) YES NO DDG Prices Market Saturation YES
NO DDG Contamination YES NO Diseases and
Policies re GM Products YES NO _________________
__________________________________________________
__________________________________________________
___ Products for Sale 4 8
32Lower Production Costs
- US0.10
- per litre
- lower production costs
-
-
33Eliminates the Use of Fossil Fuel
- Produces Green Energy
- Bio Gas
- Electricity
- Steam
- Pipeline Gas
- Transportation Fuel (LNG)
34Energy Independent
- Generates Renewable Energy internally in excess
of ethanol plants requirements - The anaerobic digestion of the stillage will
generate sufficient methane to produce all of the
steam and the electricity to convert feedstock
into 200 proof ethanol
35Increases the Net Energy Value of Ethanol
- Nexum increases the net energy value of ethanol
production by a factor of 9.6 - Grain production and transport, grain conversion
to ethanol, and ethanol distribution all consume
energy. The US Department of Agriculture
calculated the net energy for dry grind ethanol
at 5,880 BTU/gallon. (H. Shapouri et. Al, 1995) - The net energy value is defined as the difference
between the energy content of the fuel and the
energy required to produce and deliver the fuel
to the end user. - Nexum will recover 69 percent for the nitrogen
fertilizer, thus reducing the energy input for
grain production from 21,225 BTU/gallon to 17,699
BTU/gallon. Nexum will also self generate up to
100 percent of the energy required for grain
conversion to ethanol. - The net energy value for Nexum is calculated at
565,831 BTU/gallon, an increase of 9.6 times
36Use of multiple feedstock types
- Reduces risks associated with feedstock costs and
yield - Corn
- Wheat
- Barley
- Sorghum
- Sugar Beets
- Sweet Potatoes
- Peas
- Tapioca
- Cassava
- Millett
37Revenue Enhancement
- Producing additional by-products such as
- Biogas, upgraded to natural gas equivalent, to be
sold or sent to gas engines and turbines to
produce green power in the form of steam and
electricity - CO2 for commercial and industrial applications
- Organic soil enhancer and fertilizer
- CO2 credits
38Reduces VOC Emissions by 95
- The VOCs emitted to the air come mainly from the
drying of the wet grain or wet grain and syrup. - Recent requirements to install thermal oxidizers
on the grain drier off-gas has shown a reduction
in airborne VOCs emissions of up to 95 percent. - Nexum eliminates the potential from airborne
release of these compounds. - Elimination of grain drier in the Nexum process
will at least achieve this level of airborne VOC
emission reduction.
39Reduces Water Consumption
- Nexum reduces the Water Consumption by recycling
the cleaned and filtered Water back to the
operation. - No need for costly evaporation system to clean
water.
40Reduces Green House Gas Emissions
- Nexum will produce all of the energy required for
the ethanol production from the anaerobic
digestion of the stillage. Therefore, the carbon
in the methane used for energy comes from the
grains. The grains produce all of its organic
carbon from atmospheric carbon dioxide. So, by
using Nexum the ethanol production facility has a
near net zero increase in atmospheric greenhouse
gases.
41Alexander Kopp, CEO, Nexum Energy Corp.
- Mr. Kopp is a Swiss citizen with 25 years of
engineering, sales and marketing experience with
a number of large Swiss companies including
Commercial and Private Banking Institutions. - He has extensive experience dealing with
environmental solutions involving greenhouse gas
credits, carbon sinking, anaerobic digestion,
Biofuels production and many other related
topics. Alexander received a diploma in Civil
Engineering drafting in St. Gallen, Switzerland.
Mr. Kopp started his career as a Civil Engineer
with the District Administration of Wil,
Switzerland. In 1992, he received a diploma in
Economics in Basel, Switzerland. Mr. Kopp has an
impressive track record of project management
successes in business, Sports and Cultural
projects throughout Europe and North America. - Mr. Kopps sales experience and talent enables
him to react immediately to market driven changes
and diversity. His ability to implement
innovative and competitive solutions in rapidly
changing markets has been a cornerstone of the
Okanagan Biofuels project. Currently, he is the
President and CEO of Nexum Energy Corp.
42Kyu Hong Park, Vice President SK EC, Korea
43Marshall Farris, Partner, Ascenta Group of
Companies
- Marshall Farris, a co-founder and principal of
Ascenta Finance, has over 17 years of experience
assisting public and private companies with
corporate operations, capital development,
investor relations and regulatory compliance
activities. He has thus far participated in
raising over US150 million in capital financing
for public companies. Marshall has an extensive
network of contacts in the financial community
and is skilled in identifying compelling business
opportunities for investors and companies. He
also co-founded Ascenta Finance's sister
companies Ascenta Capital Partners Inc., which
specializes in providing investor relations
services, and Ascenta Ventures, which specializes
in corporate creation. In addition, he is a
co-founder of Philippine Metals Corp. and is a
former director of Mindoro Resources Ltd. (TSXV
MIO) and Panoro Minerals Ltd. (TSXV PML).
44Dr. Uwe Sollfrank, CEO Holinger AG
- Dr. Sollfrank is chairman and chief executive
officer of HOLINGER AG one of the leading
consultant and engineering companies in
Switzerland specializing in environmental
services and technology and new energies. The
company will celebrate their 75 years anniversary
in 2008.Uwe is a native of Germany, living in
Switzerland for more than 25 years. He holds a
PhD in sciences of the Swiss Federal Institute of
Technology Zurich and a master of environmental
engineering of the German Technical University in
Berlin as well as a post-graduate in
environmental engineering and water pollution
control of the Swiss Federal Institute of
Technology in Zurich. - Uwe joined HOLINGER in 1992. He has an in depth
knowledge in mathematical modeling of
environmental processes, water supply, air
pollution control, aerobic and anaerobic
wastewater and sludge treatment. For more than 15
years he worked as a project manager doing
environmental projects in multiple countries of
the world. He has been the Chairman of HOLINGER
since 1999. and in addition is responsible for
strategic planning, international partnerships
and development. - Uwe is a member of the International Water
Association (IWA), the Swiss Water Pollution
Control Association (VSA) and a corporate member
of the Association of Swiss Industry of Gas and
water (SVGW) as well as the German Association
for water, wastewater and waste (ATV).
45Others, TBD
46Fraser Mackay, EVP, Nexum Energy Corp.
Fraser Mackay is a senior executive with an
extensive background in finance, marketing,
transportation and supply chain management in
both North American and offshore markets. He also
has considerable experience in operations and
business development. He spent 20 of the last
27 years working for a major forest products
company where he developed a number of key
relationships with industry suppliers and played
a major role in developing and growing some of
the largest retail and home builder accounts in
North America today. He has a proven expertise
in growing and running complex, multi-location,
capital and employee intensive businesses and is
an innovative, results-driven leader. Leaving
the forest industry, he worked on a number of
high profile business development ventures in the
transportation, forestry and biotechnology
sectors. Currently he is a director of Okanagan
Biofuels Inc. and a director and founder of Nexum
Energy Corp.
47Fraser Mackay, EVP, Nexum Energy Corp.
Fraser Mackay is a senior executive with an
extensive background in finance, marketing,
transportation and supply chain management in
both North American and offshore markets. He also
has considerable experience in operations and
business development. He spent 20 of the last
27 years working for a major forest products
company where he developed a number of key
relationships with industry suppliers and played
a major role in developing and growing some of
the largest retail and home builder accounts in
North America today. He has a proven expertise
in growing and running complex, multi-location,
capital and employee intensive businesses and is
an innovative, results-driven leader. Leaving
the forest industry, he worked on a number of
high profile business development ventures in the
transportation, forestry and biotechnology
sectors. Currently he is a director of Okanagan
Biofuels Inc. and a director and founder of Nexum
Energy Corp.
48CFO, TBD
49COO, TBD