Advanced Infrastructure Technologies has developed a proprietary composite arch tube system for bridge construction as a more cost-efficient and durable alternative to traditional building methods. Their system uses inflatable composite tubes that are bent on-site to form arches which are then filled with concrete. This eliminates the need for heavy transportation, rebar, and temporary formwork. They have completed the first bridge using this system in Pittsfield, ME and have a pipeline of 16 future bridge projects. Management aims to address the large problem of deficient bridges in the U.S. infrastructure through lower lifecycle costs and a more resilient design.
1. Advanced Infrastructure Technologies, LLC Overview Presentation This investor presentation, which should be read in conjunction with additional materials provided by the company, is confidential and has been provided to the recipient for information purposes only and no representation or warranty, express or implied, is made as to the completeness or accuracy of the information contained herein. this investor presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of advanced infrastructure technologies, llc
2. Management August 27, 2009 Confidential 2 Dr. HabibDagher – Founder and Chief Technology Officer Professor of Civil/Structural Engineering at the University of Maine Director of the AEWC Center Ph.D. in civil/structural engineering from the University of Wisconsin Brit Svoboda – President and Chief Executive Officer Co-founder of asset development group – manages a diverse portfolio of commercial real estate and industrial projects 10 years senior management experience with Sysco, a Fortune 100 company – specialized in M&A and turnarounds
3. Overview August 27, 2009 Confidential 3 Dedicated to providing a cost-efficient and long lasting solution to the nation’s infrastructure crisis Proprietary composite arch tube system for bridge construction Arches are light weight, high strength and corrosive resistant -reduce lifecycle costs Completed first bridge in Pittsfield, ME Second bridge installed August 2009 Pipeline includes 16 bridge projects
4. 151,253 bridges in the U.S. are deficient August 27, 2009 4 Structurally deficient 38% Age of Bridge AASHTO – Bridging the Gap, July 2008
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6. Investment – federal, state and localReaching age expectancy threshold Environmental factors ; freezing and thawing cycles, deicing salts Most bridges are concrete with steel reinforced rebar Corrosion of steel breaks down integrity of concrete structure Concrete Corrosion Cycle Steel rebar rusts and expands Spalling of concrete further exposes rebar
7. August 27, 2009 Confidential 6 Market opportunity Annual Spend on Bridges Number of Bridges 152,316 Deficient Bridges (U.S.) 114,237 Replacement Candidates $10.5B 75% Yr 5 projecting 750 structures <1% share of addressable market Yr 5 projecting $70 million in revenue <1% share of addressable market 57,118 Addressable Market 50%
8. Budgets growing in response to crisis August 27, 2009 Confidential 7 Report by American Society of Civil Engineers in early 2009 concluded $17.0B annual investment needed $10.5B is currently spent per year on the construction and maintenance of bridges ARRA signed into law on Feb 17, 2009 (stimulus plan) Included $27.5B for highway and bridge construction “…the largest increase in funding of our nation’s roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s” – Obama Admin.
25. Benefits of composite arch tube system August 27, 2009 11 Stay in place form for concrete Eliminates need for temporary formwork Structural reinforcement for concrete Eliminates need for rebar installation Environmental protection for concrete Prevents corrosion – prolongs life, reduces maintenance Confined Unconfined Confidential
26. Safe and redundant system August 27, 2009 Confidential 12 Performed to 3.5x design load in comprehensive testing Initial hinge forms at crown Subsequent hinges form at shoulders resulting in structural failure
27. Competitive advantages August 27, 2009 Confidential 13 Based on patent pending process and technology 1/2 carbon footprint of traditional build cycles Exclusive licensing rights to proprietary process R&D facility – AEWC Center at the University of Maine Comprehensive testing program fulfilled First bridge built – the Neal Bridge Second bridge installed August 2009 Pipeline includes 16 bridge projects Relationships with key decision makers including; State DOTs, Congressional committees, Governors
40. August 27, 2009 Confidential 16 Current business model Value Proposition Competitive/sustainable pricing Low cost, scalable production Reduce lifecycle costs Resilient, safe alternative OPEX (SG&A/R&D) 1 Strategic Partners Distribution Channels COGS - Structural design Resin vendor Braided carbon fiber supplier AEWC/University of Maine VC partner Civil engineering co’s Heavy construction co’s DOTs/Local municipalities Privately owned 2 COGS - Arch assembly 3 COGS -Transportation 4 Revenue = Arch units x Price Expense = COGS + OPEX
41. Summary August 27, 2009 Confidential 17 Large and growing market opportunity Timing is right for a better bridge solution Provides a cost-efficient and long lasting solution to a massive infrastructure problem Comprehensive testing program fulfilled First bridge built – the Neal Bridge Second bridge installed August 2009 Pipeline includes 16 bridge projects Detailed financials, DCF valuation and returns analysis available upon request
42. Contact Information August 27, 2009 Confidential 18 Advanced Infrastructure Technologies, LLC Brit E. Svoboda President & Chief Executive Officer Telephone: (239) 992-7800 Cell phone: (239) 633-9082 Email: bgsvoboda@earthlink.net To learn more about us, visit: www.aitbridges.com
