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NEXUM ASIA

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CASSAVA CHIPS FACTORY. Nexum Philippines. Nexum Philippines Corp. currently being incorporated ... Secure Land for Cassava Chips Factory ... – PowerPoint PPT presentation

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Title: NEXUM ASIA


1
NEXUM ASIA
September 2008 Investor Presentation
2
Disclaimer
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.
3
Introduction
  • Management
  • Challenges for Ethanol Industry
  • Nexum Model
  • Business Opportunity
  • Structure
  • Investment Opportunity

4
Management
  • 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

5
Conventional 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

6
Challenges for Ethanol Plants
7
The Nexum Model
8
Three Proven Processes
9
Strategic 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

10
Strategic 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.

11
Strategic 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.

12
Reasons 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

13
Nexum 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

14
Market 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)

15
Market 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

16
Market 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

17
Market Opportunities
  • Other Organic Waste Streams
  • Agricultural Waste
  • Biogas Projects with Energy Crops
  • Food Processing Industry
  • Slaughter House Facilities
  • Municipal Solid Waste

18
Investment 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

19
Share 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)

20
Structure
NEXUM ASIA
NEXUM PHILIPPINES
NEXUM INDONESIA
NEXUM VIETNAM
PROJECT P1
PROJECT V1
PROJECT I1
PROJECT P2
PROJECT V2
PROJECT P3
CASSAVA CHIPS FACTORY
21
Nexum 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

22
Nexum 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

23
Nexum 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

24
Nexum 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)

25
Nexum 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)

26
Nexum 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

27
Capital 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

28
Equity 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
29
Expected 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
30
Thank You! NEXUM ASIA
31
Reduced 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
32
Lower Production Costs
  • US0.10
  • per litre
  • lower production costs

33
Eliminates the Use of Fossil Fuel
  • Produces Green Energy
  • Bio Gas
  • Electricity
  • Steam
  • Pipeline Gas
  • Transportation Fuel (LNG)

34
Energy 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

35
Increases 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

36
Use of multiple feedstock types
  • Reduces risks associated with feedstock costs and
    yield
  • Corn
  • Wheat
  • Barley
  • Sorghum
  • Sugar Beets
  • Sweet Potatoes
  • Peas
  • Tapioca
  • Cassava
  • Millett

37
Revenue 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

38
Reduces 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.

39
Reduces 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.

40
Reduces 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.

41
Alexander 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.

42
Kyu Hong Park, Vice President SK EC, Korea
43
Marshall 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).

44
Dr. 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).

45
Others, TBD
46
Fraser 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.
47
Fraser 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.
48
CFO, TBD
49
COO, TBD
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