investor presentation - tri-tech.cn · investor presentation ... 2010 2009 founded as a ... water...

28
| Investor Presentation April 2012

Upload: phamhanh

Post on 22-Apr-2018

215 views

Category:

Documents


2 download

TRANSCRIPT

|

Investor PresentationApril 2012

This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions, and any other statements other than statements of historical facts.

These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Safe Harbor Statement

1

About Tri-Tech

Customers

CoreBusiness

Organization

• Municipalities, MWR (Ministry of Water Resources), • State-Owned Enterprises, such as CNPC, SINOPEC, PetroChina & CNOOC • Public and private sectors in China, India, Middle East and North America

• Water, Wastewater Treatment and Municipal Infrastructure• Water Resources Management Systems and Engineering Services• Industrial Pollution Control and Safety

• Headquartered in Beijing• 330 employees in 10 subsidiaries and one JV• Branch offices across China, India, and the U.S., entering lucrative water

treatment/processing markets in India, and other Asian/Middle East countries.

• A 40 acres R&D and manufacturing facility under construction in Tianjin

Tri-Tech Holding Inc. is a turnkey technology, products and engineering solutions provider to water resources management, municipal water and industrial water/wastewater treatment in China and international markets.

2

Milestone

2012

2011

2010

2009

Founded as a provider of technical solutions and services for water resource management.

IPO on NASDAQ Capital Market and became the first public Chinese company providing solutions to water resources engineering, municipal wastewater treatment and industrial pollution control.

Raised $33.1 million in gross proceeds in secondary offering. Established Tri-Tech U.S and Tri-Tech India Acquired BSST and began to provide services in industrial sectorsWon $60 Million contract Inner Mongolia Drinking Water Treatment Plant

Acquired J&Y International Inc. a Wisconsin water company and began to penetrate into seawater desalination, water recycling and zero liquid discharge of high salinity wastewater.Acquired a majority ownership of Yuanjie Water and expanded water supplying systems for high-rise buildings.Won Total $51 million international contracts in India, Qatar and Canada

2002

Won $3.6 Million water processing unit contract for a steel plant in MexicoAwarded Top 10 Chinese Emerging Water Enterprise

3

Warren Zhao, Chairman & Co-CEO, Co-Founder• 24+ yrs mgmt skills, technical and electric engineering expertise in Environmental Protection industry • Bachelor’s and Master’s degrees in electrical engineering from Northwestern Polytechnical University of

China

Philip Fan, President and Co-Founder• 23+ yrs mgmt skills, technical and engineering experience in water resources and environmental sectors• Bachelor’s and Master’s degrees in environmental engineering from Hunan University and Master’s

degree in civil engineering from Louisiana State University (LSU)• Registered professional engineer (PE, inactive) in the U.S. since 2001

Peter Dong, CFO and Co-Founder• 18+ yrs mgmt skills and finance expertise • Bachelor’s degree in computer science from Nanjing University of Aeronautics and Astronautics and

Master’s degree in economics from Renmin University of China

Gavin Cheng, Co-CEO• 25+ yrs mgmt skills and engineering expertise• Bachelor of Engineering and Master of Engineering degrees from Nanjing University of Aeronautics and

Astronautics• Executive MBA from Peking University in 2001

Experienced Leadership

4

Market Cap (4/12/2012) : $51.5 MShares O/S: 8.26 million Float : 60.6% of O/STotal institutional Positions: 24 institutional holders (14 North Americans), 13% of O/S;21 mutual funds, 13.6% of O/S Current % of O/S held by Top 10 institutional holders: 12.5%

Regional Institutional & Mutual Funds Concentration

North America 11%

Europe 15.6% Asia

39.4%

Stock Ownership (as of April. 2012)

5

Key Financial Facts & Projection$M

illio

n

6

8.416.8

43.5

85.9

128

1.7 3.9 7.1 8.1 12.1

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012E

$0.92  $0.98  $0.98 

$1.47 

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60

2009 2010 2011 2012E

Diluted EPSRevenue and Net Income

Backlog and Pipeline

11.5

59.6

94.589.7

127.1

0

20

40

60

80

100

120

140

09/12/31 10/12/31 11/12/31

Backlog

Pipeline

Total backlog of $94.5 million (as of Dec. 31, 2011)•$63.1 million (Municipal)•$16.1 million (Water Resources)•$15.3 million (Industrial)

Projected Pipeline of 127.1 million (as of Mar. 2012)• $66.8 million (Municipal)• $15.7(Water Resources)• $44.6 (Industrial)

$Mill

ion

Sector Significant AwardsContract Ceiling  

($Mil)Water

TreatmentOdors Water Treatment Plant initial and Expansion Phases 60

Water Treatment System for a Canadian Hotel 0.69

Sewage and Industrial

Wastewater Treatment

Three sewerage collection system and sewerage treatment plants projects for three townships in India

42

Reused Water Quality Upgrade Project for Wastewater Treatment Plant of TAEZ

1.46

Water processing unit contract for a steel plant in Mexico 3.63

Solid Waste Disposal

Solid Waste Sanitary Landfill Project for Xinle, Hebei Province 3.7

Water Conservancy

32 flash flood monitoring and forecasting projects in 28 Chinese provinces and municipalities, were implemented during 2011, improving safety for over 100 million people and their properties

14

Seawater Desalination

Seawater desalination unit contract in Qatar 8.3

Industrial Production

Safety

Yanchang petroleum Group production security system and emergency command center contracts

4

Selected Project Portfolio

Segment 1- Water and Wastewater Treatment

Scope• Water Supply – High-rise Bldg and Water Treatment Plant• Wastewater – Treatment Plants, Water Reuse, and Sludge Disposal• Municipal Solid Waste – Treatment and Disposal Facilities

Business Model• EPC• Proprietary Technologies and Products• Installation and Commissioning Services• BT, BOT• Qualified WWTP Operator

7

Competitors• Sound Environment (ShenzhenEx, HKE and SGX listed)• OriginWater (ShenzhenEx listed)• Beijing Enterprises Water Group (HKE listed)• Beijing Capital Co. (ShenzhenEx Listed )• BCEG Environment Development Co. (State-Owned)• Veolia• Siemens• Degremont

Segment 1- National Footprint & Peers

Key Customer• Odors Yuande Water Co. Ltd.• Municipal Government of Xinle, Hebei Province• Kuitun Wastewater Treatment Plant of Xinjiang• Buerjin Government of Xinjiang

Segment 2 - Water Resources Management

ScopeDrought and Flood ControlGround and Surface Water MonitoringWater Quality Monitoring and Irrigation

Business ModelProprietary Technologies and ProductsSoftware and System EngineeringSystem Integration

9

Competitors• Beijing Richway Tech. Development (State-Owned)• Automation Research Institute for Water Conservancy

of Nanjing (State-Owned)• Beijing Golden Water Information Tech. (State-Owned)• Beijing Huitu Tech. (private)• Xi’an Summit Tech. Co. (Private)• Shenzhen Hongdian Tech. Co. (Private)• Nari Company (State-Owned)

Segment 2- National Footprint & Peers

Key Customer• Ministry of Water Resources• Water Conservancy Departments and Bureau• Hydrology and Water Resources • Administration of different provinces and regions • Flood Control and Drought Relief Offices of

Different provinces and regions

Scope• Industrial Water/Wastewater Treatment/ZLD• Seawater Desalination• Air Pollution Control• Safety and Emergency Response

Business Model• Turnkey Solutions• Proprietary Technologies• System engineering• Qualified WWTP Operator

Segment 3 – Industrial Pollution Control and Safety

11

Key Customer• PetroChina• Interface Modular Carpet (China) Co. Ltd.• SINOPEC• Yanchang Petroleum Group • Odors Xinsheng Natural Gas Development Co.• Dawangdian Industry Park of Hebei• Tianjin Airport Economic Park Water Co.

Segment 3 - National Footprint & Peers

Competitors• Beijing Water Business Doctor Co.

Ltd. (China GEM listed)• GE RCC Thermal

Global Footprint & Peers

Key Global Customers • Jasper Park Lodge, Canada• Bihar Urban Infrastructure Development Corporation

Limited, India• Qatar Petrochemical Co.• Ambbio in Mexico• CNOOC• CNPC Nigeria

Competitors in International Markets• GE – RCC Thermal Products• IDE• Veolia - Sidem• Aqua-Tech

Industrial Growth Drivers

China 12th Five-Year Plan on Environmental Protection

• $536 billion for environmental protection• Add 42 million tons of daily sewage treatment

capacity, 85% treatment rate by 2015Continued increase the use of recycled water

• Limit 635 billion cubic meters annual consumption by 2015Drinking Water TreatmentNew Safe Drinking Water Standard GB5749-2006

• 71 New water quality indexes added• RMB 220 billion for upgrading of purification

facilities.

8

State Council Circular No. 1• RMB 4 trillion in water conservancy over

next 10 yearsNewly Initiated National Flash Flood Forecasting Program in 1800+ counties throughout China to be completed by 2013Strong Fund Allocation to flash flood projects

$69 billion in industrial wastewater treatment during 12th Five-Year Plan Period

• Zero Liquid Discharge (ZLD) for industrial wastewater treatment particularly in North and Northwest China

• Seawater Thermal Desalination for industrial processing waterIndustrial Emission Control opportunities in Air Pollution Control, toxic wastes treatment, particularly in oil and chemical industries

Water and Wastewater Market in India • The overall market is estimated to be more than $4 billion per year with a projected

annual growth rate of 10–12% for the next 5 to 10 years• $900 million per year in wastewater treatment with an annual growth rate of 14%• $2.07 billion water supplying contracts and $5.7 billion waste water projects from

2011 to 2013

Seawater Desalination Market• The Middle East holds 50% of the world capacity with daily output of 11 million cubic

meters fresh water• Global seawater desalination market will be $70 to $95 billion by 2015• The Middle East and U.S. will be the fastest growth market

Solutions to Oversea Markets• Offers EPC, Turnkey and Specialty Solutions, Engineering, and Products, etc.

Oversea Market Opportunities

13

Strategy of Growth – Diversification

Geographical Diversification• Domestic – West and Northwest regions of China• International – India, the Mideast and North America

Sector Diversification• Public Sectors - Municipalities, Government agencies• Private and SOE industries, such as oil, gas, petrochemical and power generation

Business Model Diversification• EPC• Turnkey Solutions• Specialty and Products• BOT• Facility Management, etc

14

R&D Activities

Tianjin Baoding R&D Center Under Construction

• 40 Acres Land Property

• Phase I – completed 20,000 square meters construction

Forward Osmosis Products Localization

• Landfill Leachate Treatment Feasibility Study

• Localization of Personal Hydration Package

MBR – Membrane Technologies

Groundwater Monitoring Remote Terminal

Unit Software Upgrade

Drought Information and Decision-Making Systems

15

Core Technologiesand Solutions

Patents / Software Certificates

Qualifications

Core Technologies and Capabilities

• ZLD Solutions for Industrial Wastewater Treatment• VOC Treatment• Forward Osmosis Technology• Flash Flood Disaster Warning Information Dissemination

System

• 11 patents • 39 software copyrights

• System Integration (Level 3)• Research and Evaluation for Hydrology and Water Resource

(Level B)• Operation License for the Waste Water Plant (Level B) …

16

Corporate Operation & Management

To shape Tri-Tech into a world-class company with modernized management practices of international standards and interfaces to adopt regional differences with a tailored approach,

Talent Development and Retaining• Backbone Employee Training System• Performance Evaluation and Comprehensive Compensation systems

Internal Control • Deployment of ERP• Evolving implementations of SOX404

Business Development and Management• CRM and other management information systems

17

Investment Highlights (NASDAQ: TRIT)

Seasoned and Devoted Management Team

Well Established Presence in Large, Well-Funded Growing Global Market

Water Resource Management/Pollution Control Very High Chinese National Priorities

Advanced and Proprietary Technologies and Products

Strong Backlog and Pipeline

Fast Growing

18

For the Year Ended December 31, 2011

Segment 1%

Segment 2%

Segment 3%

Total%

System integration $ 58,025,035 99.8 $ 9,633,141 74.5 $ 14,743,297 99.4 $ 82,401,473 96.0

Hardware products 98,904 0.2 3,278,426 25.4 83,280 0.6 3,460,610 4.0

Software products $ 0 0 $ 10,838 0.1 $ 0 0 $ 10,838 0

Total revenues 58,123,939 67.7 12,922,405 15.0 14,826,577 17.3 85,872,921 100

Segment 1 - water, wastewater treatment and municipal infrastructure Segment 2 - water resource management systems and engineering services Segment 3 - industrial pollution control and safety

Revenue Breakdown

67.7% 

15% 

17.3% 

By SegmentSegment1 Segment2 Segment3

96% 

By CategorySystem Integration Hardware Products

19

Period Ending 31-Dec-11 31-Dec-10

Total Revenue 85,873 43,535

Cost of Revenue 64,018 28,768

Gross Profit 21,855 14,767

Operating Expenses

Selling General and Administrative 10,937 5,834

Others 179 279

Operating Income or Loss 10,739 8,654

Net Income Applicable To Common Shares 8,088 7,077

In ‘000 USD.

Diluted EPS $ 0.98 $0.98

Income Statement - Years ended Dec. 31, 2011

20

Period Ending 31-Dec-11 31-Dec-10AssetsCurrent Assets

Cash And Cash Equivalents 14,024 24,901 Net Receivables 29,904 22,677 Inventory 7,706 5,887 Other Current Assets 6,121 1,903

Total Current Assets 57,755 55,367 Non-Current Assets*

Long-Term Unbilled Revenue 59,299 15,938Plant and Equipment, Net 1,437 1,045Construction in Progress 4,567 -Intangible Assets, Net 11,610 4,331Long-Term Restricted Cash 2,542 203Long-Term Prepayment on Land Use Right Purchasing - 5,285Goodwill 1,441 594

Total Non-Current Assets 80,896 27,396 Total Assets 138,651 82,763

LiabilitiesCurrent Liabilities

Accounts Payable 41,777 12,497Short/Current Long Term Debt 10,784 2,718Other Current Liabilities 1,887 1,665

Total Current Liabilities 54,448 16,880Long Term Debt - -Other Liabilities 3,456 1,562Minority Interest 6,018 2,028Total Liabilities 63,922 20,470 Stockholders' Equity

Total Stockholder Equity 74,729 62,293

In ‘000 USD

Balance Sheet

21

Breakdown of Non-Current Assets

59.3

4.6

81Mil Ending Dec 31, 2011

Long-Term Unbilled Rev.

Plant& Equipment,Net

Construcition in Progress

Intangible Assets,Net

Long-Term Restricted Cash

Long-Term Prepayment onLand Use Right PurchasingGoodwill

15.9

5.3

27Mil Ending Dec 31, 2010

Million in USD

Contact Information

Tri-Tech Holding Inc.Phil Fan, PresidentJanice Wang, IR Manager+ 86 010 5732 3696+ 86 010 5732 [email protected][email protected]

22

Auditor: Marcum Bernstein & PinchukContact: Brew BernsteinEmail: [email protected] York City, NY646.442.4811

Legal Counsel: Kaufman & CanolesContact: Bradley A. HanebergEmail: [email protected] East Cary Street, Suite 1400Two James CenterRichmond, Virginia 23219T (804) 771.5700F (804) 771.5777

Michael Gaugler Dmitriy Shapiro

Brean Murray &Carret Co., Inc.212-702-6539

Global Hunter Securities, LLC646-264-5606

Analyst Coverage: