2. Overview of Clear Environmental IT
Clear Environmental IT is a wastewater treatment control system develop company
Design Market Sales Partnership
Core Competency Target MarketBig data system
Reliable technology
Clear product and market
Client bases
Government institutions
Wastewater treatment plants
Water Affairs Groups
Third party suppliers
Cost management
Treatment effective
data analysis
3. Industry
China’s wastewater treatment industry
Service Clients on business
Veolia Environnement S.A. (Tianjin)
Sino-Singapore Tianjin Eco-city
Market scale
China’s government planning to invest $55 billion for waste water treatment
infrastructure, achieve 60%-80% waste water treatment rate and build more
than 1000 new treatment plants.
At the end of 2012, the number of wastewater treatment and recycling
companies has reached 213, total assets $14.07 billion, 11.43% increase from
2011, revenue $3.94 billion, 16.16% increase from 2011.
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Revenue Asset
2011 2012
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Revenue Asset
4. Products
Technologies and aims of Clear Environmental IT
Setting data selection and collection standards
Building data centers and long-term information storage
Building data selection and collection automation systems
Finishing application of data mining technology and cloud services
Technologies
Effective aims
Workflow institutionalized
Supervision and Management Automation
Statistics standardization
Effectiveness Analysis
Management improvement
Scientific governance program
5. Water treatment Information Analysis and Management System
Water Affairs Groups
Water treatment plants data
analysis
Water sources data analysis
Third party technology
suppliers
Water treatment program
Water treatment technology
Environment analysis and report
Governments
Water pollution alert
Environment protection and
regulation
Information
management services
Company’s data
center
Small and medium plants
3-4 tier cities and villages
The system sales and construction
The automatic control system and remote telemetry remote control system construction
Technical services and features upgrades
Target Market
Clear Environmental IT services
6. Pricing Strategy
Systems and services pricing standard
Groups level system
Entry period (1-2 years): Using lower prices to attract customers (see table in next slide), until our company
get 10% of the water market share, and building corporate brand.
Advanced period (3-4 years): The market trends to highly demand of water treatment automation and
management information. With the brand, the company will rise 30% sales price from the initial price, and
attempts to occupy 20 to 30% market share.
Maturity period (4 years later): Estimating the market will enter the competition period, the company will
consider to reduce 50% price from the advanced period price (depending on the competition). In this
period, our company trying to have more than 50% market shares and achieving the dominant position in
this product family.
7. Pricing Model
Systems and services pricing standard
Groups level system
Systems and services pricing (in RMB)
No. Products and Services Type Unit Unit price
1 Water treatment plant-level software systems (including 10 sets of client) Sale Per set 150000
Automation system connection, integration and data processing services Service Per set 100000
Additional client set Sale Per set 2000
1 year warranty, after the warranty period technical services fees Service Per year 24000
2 Regions or groups level software systems (including 20 sets of client) Sale Per set 300000
plant-level system connection fees Service Per set 50000
Additional client set Sale Per set 2000
1 year warranty, after the warranty period technical services fees Service Per year 36000
Data center services pricing
No. Products and Services Type Unit Unit price
1 Water treatment plants data collection and processing Sale Per set 15000
1 year warranty, after the warranty period technical services depends on requirements Service Per year
2 Remote client set Service per set per year 30000
Water treatment device client set Service per set per year 7200
8. Development Plan
Three development steps of Clear Environmental IT
Entry period (1-3 years): Based on the successful cases of Veolia Environnement S.A. (Tianjin) and Sino-Singapore Tianjin
Eco-city, as the concept of improving cost management and operation level, expand market to wastewater treatment
plants and water affairs groups. Using the experience, marketing to government environmental regulation and
management agencies.
Key word: Automation Systems, Data Center, Marketing
Advanced period (2-4 years): Improving nationwide marketing, building company brand, forcing on market shares.
Developing remote applications to build and connect our cloud data services center.
Key word: Cloud Data Services, Water Treatment Intelligent, system updating
Maturity period (5 years+): With the experience on data process and analysis services, company will attempt to expand
our business out of the water treatment industries like food, pharmaceutical manufacturing which need high quality
data management industries.
Key word: New markets and Industries, New products
9. Current Achievements
Clear Environmental IT current conditions
Clear Environmental IT founded in 2012, the registered capital 5 million yuan, has 15 staffs, the
founding shareholders are: one corporate shareholder, one individual shareholder.
In 2015, the company will start ESOP.
The company has completed the development of "Water Treatment Operations Analysis and
Management Information System 2.0", and has gotten software copyrights and official
certification. At present, the English version of the system is under developing.
System users: Veolia Environnement S.A. (Tianjin), Sino-Singapore Tianjin Eco-city.
Data center users: Shanghai Ruiyong industry co. LTD (Preliminary commercial agreement)
Company Status
Product development projects
Business conditions
10. Profit forecast
Clear Environmental IT profitability
0.2
0.35
0.45
0.5
0.55
0
0.1
0.2
0.3
0.4
0.5
0.6
2016e 2017e 2018e 2019e 2020e
22.56
37.572
65.73
131.46
173.77
4.512 13.1502
29.5785
65.73
95.5735
0
50
100
150
200
2016e 2017e 2018e 2019e 2020e
Revenue EBITDA(In millions RMB)
Marketing
Operating
E-commerce
Local Services Office
Internet Marketing and Advertising
Industry Alliance
Customer Support
Data Center Support
SellingProfitability
EBITDA margin
11. Financing Aims and Exit Strategies
The reasons of financing need
Establish the Marketing System
Improve the Office Environment
Data Center Construction
Development Team Building
Enhance the Management Capacity
Use of Funds
20% shares (Post-money valuation)
The investment will use to ensure the
next three years development goals.
Financing target
Exit Strategies
Initial Public Offering
Secondary Buyout
12. Partnership
Reliable parent company of Clear Environmental IT
Tianjin Reform Science & Technology Co., Ltd was founded in 1996, the company is a hardware and
software system design, development and construction of high-tech enterprises.
Geospatial data (GIS)
Electronic nautical chart
Database applications
Information automatic acquisition
Satellite positioning
Data communications
Technologies Business areas
Marine transportation
Offshore oil exploration
Municipal administration
Water treatment
Public transport
Information management
Information services
13. Advantages and Risks
Elements associated for the valuation and investment
Advantages and opportunities Potential Risks
Reliable technology and product
• 17 years experience and accumulation
• Completed idea and product
Exchange rate
• US dollar and interest rate
• China’s economy and monetary policy
New competitors
• New rivals expected to enter
• New technologies may alter landscape
Influential clients
• Veolia Environnement S.A. (Tianjin)
• Sino-Singapore Tianjin Eco-city
Developing market
• China’s Five-Year Plan
• International market
Government budget
• Local governments lack fiscal support
• Financial pressure change infrastructure plan
14. Summary
Clear Environmental IT will process with the financing
Financing need
Profit summary Advantages deserve an investment
Potential risks
• Reliable technology and product
• Developing and unrivaled market
• Influential clients
• Exchange rate
• New competitors
• Government budget
• Expanding the market shares
• Building the national data center
• International market development
• $3.94 billion water treatment Industry
• $55 billion government investment
• More than $10 million annual sales
