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Zhengli Polymer - sample pitch book

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Zhengli Polymer - sample pitch book

  1. 1. Zhengli Polymer Technology Co., Ltd.Enhanced oil recovery and wastewater treatment in ChinaApril 2011 1
  2. 2. DisclaimerThis sample presentation includes forward-looking that are subject toimportant risks, uncertainties and assumptions concerning futureconditions that may ultimately prove to be inaccurate and may differmaterially from actual future events or results. Likewise, certainconfidential information has been removed from this sample presentation,resulting in this sample presentation not being a complete representationof the subject company and its future plans. All statements other thanstatements of historical fact contained in this presentation that addressactivities, events or developments that may occur in the future constituteforward-looking statements. Forward-looking statements may includeprojections, as well as statements regarding future plans or economicperformance, or the assumptions underlying any of the foregoing.The poster of this sample presentation does not assume responsibility forthe accuracy or completeness of such forward-looking statements. Assuch, readers are cautioned not to place undue reliance on such forward-looking statements. 2
  3. 3. Zhengli Polymer is a Leading Chinese Producerof High-Quality Polyacrylamide (PAM)A polymer with applications in oil extractionand wastewater treatment industries 3
  4. 4. Zhengli Polymer at a GlanceEstablished in 1995 in #1 PAM producer inZhengzhou, Henan Province Central Western China  Revenue: $XX.X million; net profit: $X.X million (2010)  Production capacity of 11 kilotonnes (“kt”)  30+ variances of PAM  ~200 employees 4
  5. 5. PAM is in High Demand> 417,000 tonnes of PAM is consumed in China annually1PAM is more than a Consumption$1.2Billion CAGR of 17% (2006 to 2009)industry in China1Source: China National Functional Polymer Industry Committee,China National Chemical Information Network (2009) 5
  6. 6. PAM Application #1: China’s Oil Problem Rapidly rising Declining oil output demand for oil from ageing wells (10-year CAGR of 6.5%*) * 1999 to 2009Increasingly reliant upon imported oil 6
  7. 7. PAM and Enhanced Oil Recovery50% >$30-$40more oil economical to use PAM for tertiary oil extractioncan be recovered usingPAM flooding comparedto conventionaltechniques 7
  8. 8. PAM and Enhanced Oil RecoveryOnly 15% Only 3%of oil produced in of oil producedChina is currently globally is throughextracted using PAM tertiary extraction Source: International Energy AgencyChina is the technological leaderfor EOR using PAM 8
  9. 9. PAM Application #2: Wastewater TreatmentIn China, 90% of 75% ofpollution ground- rivers &affects water lakesChinese government is respondingwith increased spending andstricter regulations 9
  10. 10. Wastewater Treatment PAM is the solution!60% of global PAM consumptionoutside of China is used forwater treatment 10
  11. 11. Wastewater Treatment PAM WT Consumption in China (000’s tonnes)140 A new120 market for CAGR100 = 36% Zhengli Polymer80604020 0 2006 2007 2008 2009 2010E 11
  12. 12. Zhengli Polymer: A Proven Business Model  Strong brand equity  Strong R&D and product development capabilities  Long-term industry relationships  Low-cost producer of high- quality PAM for multiple applications 12
  13. 13. Financial Highlights Revenue Net Income (CAD millions) (CAD millions) CAGR XX% CAGR XXX% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 13
  14. 14. Growth StrategyContinue to grow oil Expand wastewaterextraction business treatment business Develop new oilfield  Build strategic alliances customers  Leverage brand equity in Develop new products oil business  Direct sales to end users  M&A? 14
  15. 15. Growth StrategyContinue to expand production capacity 28 kt2 Medium- term plan 18 kt1 to expand capacity to 11 kt 68 kt in <5 6 kt years 2006 2010 2011E1 2012E11 Annualized production capacity commencing Q3 of 2011.2 Annualized production capacity by the end of 2012. 15
  16. 16. • Track record of profitable growth• Well entrenched in enhanced oil recovery market• Established foothold in fast-growing wastewater treatment industry 16

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