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Environtech - Investor Introduction

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Patrick Woock £­ Îâ¿Ë
Patrick Woock £­ Îâ¿Ë

The document is an investor presentation for Environtech China, a company developing a proprietary water recycling solution for China's growing water scarcity issues. It summarizes Environtech's technology which recycles 70% of greywater for reuse, describes target hotel and commercial real estate markets, and outlines the business model and financial projections. The presentation highlights China's severe water constraints as the problem addressed and Environtech's solution as offering a unique opportunity with its innovative system and business approach.

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First-round Capital Raise Investor Presentation Strictly Confidential Working Draft
2 Confidentiality & Disclaimer The following document is for discussion purposes only. This document is furnished on a strictly confidential basis to a limited number of sophisticated investors and potential partners and is intended for authorized recipients only and may not be reproduced or distributed in any format without the express written approval of Environtech China. By accepting delivery of this document, the recipient agrees unconditionally to be bound by a strict duty not to disclose any information included in this document to any other person. If you do not wish to be bound by this confidentiality agreement, please return this document to Environtech China immediately. The receipt of the attached information is not to be taken as constituting the giving of investment advice by Environtech China to the recipient, nor to constitute such person a customer or client of Environtech China. The information attached hereto is not comprehensive and may be changed. Environtech China expressly disclaims any and all liability for representations, expressed or implied, contained in, or omissions from the attached information. In addition, certain portions of the information contained in this document has been obtained from sources outside of Environtech China.
3 Content Environtech at a Glance The Problem we Address Our Solution Target Markets Competition The Numbers Our Company The Investment Proposal
4 ENVIRONTECH at a Glance Proprietary water recycling solution, Untapped market niche in China Unique business model Urgently require effective treatment and reuse solutions. Reduces water costs, and improves water quality for reuse Unlocks an untapped market with first-mover advantage CHINA¡¯S SEVERE WATER CONSTRAINTS ENVIRONTECH¡¯S PROPRIETARY WATER RECYCLING SYSTEM OUR UNIQUE BUSINESS MODEL
5 The Problem We Address RISING WATER DEMAND & COSTS IN CHINA
6 China¡¯s Dramatic Need for Clean Water China¡¯s per capita water supply is 1/3 the world average In Northern China, even lower ¡­ with few cost- effective treatment solutions 7% 20% of China¡¯s water is in the North 400 cities in China have inadequate freshwater supplies Industrial water users face increasing pricing & treatment costs ¡­22% of global population ¡­exploding demand from urban migration and increasing wealth ¡­45% of China¡¯s population is in the North SHRINKING SUPPLY GROWING DEMANDVS of global freshwater
7 Market Drivers: Rising Price & Strict Policy Urban water and wastewater prices, especially in Northern China, are rising steadily Water prices, and regulations, particularly for commercial and industrial users, are expected to increase substantially over the next 3 years, City 2005 2009 2010 Beijing 3 rmb/ton 6 rmb/ton 7 rmb/ton Tianjin 3 rmb/ton 6 rmb/ton 6 rmb/ton Shanghai 1 rmb/ton 3 rmb/ton 3.5 rmb/ton Guangzhou 1 rmb/ton 2 rmb/ton 2 rmb/ton Sample Regulations Urban Water Pricing Source: h2o-china, c Beijing Commercial users of water cannot increase water usage from previous year Shanghai Commercial water supply can be restricted if residential water supply is at risk Qingdao Hotels above 20,000 sqm. must install and maintain water recycling systems
8 Our Solution COST-EFFECTIVE WATER SOLUTION
9 ENVIRONTECH¡¯s solution: Our Technology Re: Water ¡ñ? Proprietary water recycling design and solution ¡ñ? Recycling 70% of a property¡¯s recoverable greywater. ¡ñ? Superior water quality for reuse ¡ñ? Modular design can scale to meet any treatment volume ¡ñ? Customized engineering to optimize results for: ?? physical parameters of the site ?? specific wastewater contents ?? type and degree of treatment required ?? the purpose of water re-use TM Re:Water captures up to 100% of a property's non-toilet water¡­ ¡­ of which we can treat 70% for reuse in kitchen¡¯s and facilities¡­. ¡­ plus treat another 20% for landscaping and toilet flushing TM
10 Kitchens, spas, laundry, ¡­ Reuse (Toilet) Final Filtra5on Water So9ener Second Filtra5on First Filtra5on First Filtra5on Rainwater Filtration Discharge for Reuse Metered Water Supply Reuse (Landscape) ENVIRONTECH¡¯s Re:Water - Innovative ProcessTM High-quality Recycled Water for Reuse Re:Water captures metered water as it enters the property and treats it before use. TM Greywater to be treated Re:Water can also capture rainwater for treatment and reuse.. TM
11 ENVIRONTECH¡¯s solution: A Unique Business Model Compelling incentives for customer adoption Stable revenue generation for Environtech For CUSTOMERS For ENVIRONTECH ¨¹? A one-stop, multi-year water recycling & service solution ¨¹? No initial capital outlay ¨¹? Consistent cash flow income across 5 years. ¨¹? Break-even per project between 12 to 24 months (depending on wastewater volume).
12 Target Markets
13 Two Target Markets Leading hotels demand high quality water for rooms, spas, pools and food & beverage outlets STAR-Rated Hotels In China China as roughly 14,000 star-rated commercial hotels and over 5,000 government-run hotels. ENVIRONTECH will targets star-rated hotels in regions where our Re:Water solution is most urgently needed . ¨¹? require effective water reuse for for guests and facilities ¨¹? value competitive advantages of higher quality water supply ¨¹? pursue the marketing benefits gained through ¡°Green¡± branding Leading Hotel Brands 1 - TM
14 Benefits for Hotels Reduce Hotel Water Costs (by reusing recycled water) SIX bottom-line benefits.. ¡­ ONE seamless solution 1 2 Tax Incentives: 10% reduction on taxes (when using water recycling equipment) 3 Manage / Reduce Long Term Costs: Today¡¯s water rates LOCKED IN for the life of contract 4 No Up Front Costs : Fees paid through savings 5 Higher Quality Water Supply: Recycled water is often of higher quality than source water 6 Stable Water Supply: Storage of recycled water can provide 2 days of water onsite if city supply is interrupted
15 Two Target Markets Grade A office and mixed-use properties demand high-quality water for their facilities and tenants GRADE A OFFICE BUILDINGS & MIXED-USE PROPERTIES China¡¯s top 20 cities contain 30 M sqm. of Grade A office space, and by the end of 2030, this will grow 65% to total 50 M sqm. ¨¹? provide superior amenities, higher service standards ¨¹? have more water-related infrastructure ¨¹? all requiring larger volumes of higher quality water By marketing ¡°Green¡± credentials and certification, these facilities can increase both occupancy rates & rental fees from leading corporate, recreational, retail and luxury tenants Grade A Facilities 2 -
16 Benefits for Office & Mixed-use Properties In addition to similar cost, water quality and branding benefits for hotels, Office and mixed-use properties can also benefit from higher margins and new revenue streams: In an increasingly competitive sector, many landlords are looking to LEED (or similar ¡°green¡± certifications) as a point of differentiation Studies have shown that rents in LEED buildings are as much as 34.5% higher and vacancies 4.2% lower then in non- LEED buildings Source: Addressing China's Water Scarcity ¨¹? Water Recycling can add 10 points (ref: LEED Certified ¨C min. 40pts) ¨¹? LEED buildings outperform others in terms of rent margins and occupancy days ¨¹?As water prices rise, landlords service fees to ENVIRONTECH stay at the original baseline level (covering 70% of their water needs). Locked-in, 5-year Service Fees
17 Stage IIIStage IIStage I Target Market Sales Cycle Meet Client Water Audit Analysis (Profit) Proposal Design Procurement Engineering Installation Go Live Service Sales Cycle should be 14 ¨C 20 weeks from initial contact through to an installed, operating Re:Water system Stage I Timing 4-6 weeks Stage II Timing 4-8 weeks Stage III Timing ¡­ 5-years TM
18 Competition
19 Competitive Landscape A) Chinese and international water market giants (Siemens, GE, Veolia, Pentair, Tianjin Capital) are currently competing in much larger municipal and industrial projects B) Small and medium players (e.g. UV Pure, ITT) focus on products and services for specific treatment stages and processes First-mover advantage, best- in-class service, in an untapped market.. ¡­ Creates entry barriers to competitors Some of these companies, plus new start-ups, will enter our markets. ¨¹? Our target markets in China are massive ¨¹? ENVIRONTECH leverages a first-mover advantage to gain sales traction and satisfied customers in top-tier, high quality service segments ¨¹? Leave lower-end segments to potential competitors entering the market Potential Competitors ENVIRONTECH¡¯s Competitive Strategy
20 The Numbers
21 Market Revenue Projection N e w Projects Recurring Projects N e w Revenue (RMB (M) T o t a l Revenue RMB (M) T o t a l Revenue USD (M) Year 1 20 0 12 12 1.8 Year 2 40 20 24 36 5.3 Year 3 100 60 60 96 14.3 Year 4 100 160 60 156 23.3
22 Our Company
23 ENVIRONTECH ¨C Development Milestones In first 9 months of operation, all strategic goals reached on time and on budget Milestone to date Q2 09 Q3 09 Q4 09 Q1 10 Founders launch Patent/trademark filing Shanghai Office Engineering Partners Asia Pacific Senior Management First Hotel LOI First Mixed-use LOI First sales contract Project Management and Service Partner Financing Partner First installation ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹
24 ENVIRONTECH - Experienced Team Industry Leaders ¡ì? 25 years in bringing companies public, managing public entities, and building companies in the US and China Field Specialists ¡ì? 50 years in combined waste water experience ¡ì? 25 year¡¯s experience in waste water recycling and water reclamation ¡ì? With our engineering partner, we have successfully designed and fulfilled over X number of wastewater treatment projects ranging from US$50,000 to over $US2 billion. Superior Business Development ¡ì? Strong track record of company deployment and leadership. Our staff members hold the following credentials: ¨C? Previous CEO of Jin Jiang Hotels - Previously built companies (in China) from 0 to 25 Million ¨C? Managed a Northern China Sales Force ¨C? Real Estate Consulting/Leasing for Mixed-use Projects Environtech is a start-up, composed of a small team of experts seamlessly combining long- term strategy, sales and execution Directors have been hand-picked based on specialized expertise
25 Our Core Team: Technology & Engineering Stephen J. Ratelle, President and Director of Water Projects. Mr. Ratelle has over 25 years experience in Project Management, Design and Advisory Services for large Water Treatment and Reclamation projects. Mr. Ratelle has promoted new water technologies, implemented best practices, and mentored junior technicians. During Mr. Ratelle¡¯s career, projects have included oversight of an, a 68 acre site with25 story condominium and a 50- story hotel and casino resort project; project manager of a leading Spa at a 28 story hotel and conference center, plus numerous wastewater treatment projects up to $2B. Most recently, Mr. Ratelle has been involved in developing and designing Re:Water? recycling systems. Alan Aguba, Vice President of Engineering. Mr. Aguba has over 25 years experience in progressively more responsible positions in major Construction Management, engineering, procurement and construction projects He has excelled in start-up and validation of technologically in challenging industries ranging from state-of-the-art petroleum refining and chemical processing and intelligent building, to a world scale water treatment and power generation facilities. He is currently managing the Chevron El-Segundo Refinery Capital Improvement Projects. Mr. Aguba works extensively with over 200 engineers in China.
26 Christopher L. Bachran, Senior Vice President, Managing Director of Asia Pacific. Chris has 35 years experience in the management of hotel operations in the US and Asia and is a hotel executive of the highest caliber. He has most recently served as President of Jin Jiang Hotels, the largest hotel group in China, Chief Operating Officer for Asia with Radisson Hotels, and has held several China and Asia Vice President and Director roles with Sheraton Asia Pacific Corporation. Patrick Woock, Vice President of Business Development. Mr. Woock¡¯s 7 years in China with start-up organizations and multi-national companies seeking to expand into the China Market brings extensive China Business Development experience to the team. Mr. Woock has a wealth of experience in establishing distribution, sales and supply chain channels, as well as negotiation and cross cultural communications skills. Before joining Environtech, Inc., Mr. Woock held senior positions for a number of firms in China Prior to China, he was a trader and broker on Wall Street. William Pryor, Senior Development Director Mr. Pryor has worked in Taipei and Shanghai for more than 5 years, with the majority of his experience under the direction Jones Lang LaSalle¡¯s Retail Shopping Center Department in Greater China, a Fortune 1000 commercial real estate firm with a presence in over 180 countries. During his China career, Mr. Pryor has provided market research, feasibility studies, strategic advice, and project planning and leasing in China to western, Japanese and Chinese companies entering China. Our Core Team: Operations & Sales
27 Our Investment Opportunity
28 US$3 Million Equity Stake US$3 million This Offering has a minimum limit of $25,000 in aggregate offering proceeds and a maximum limit of $3,000,000 in aggregate offering proceeds. We will consider equity, preferred shares, and convertible debt for investment. US$3 million in equity can gain a 17% equity position. According to market conditions and the company¡¯s growth, we may pursue exit through a reverse merger listing, raise growth capital, or continue company growth and expansion organically. Ownership Maximum-Minimum Investment Exit Scenario
29 Use of Proceeds Proceeds from this offering will be used for to cover operating expenses, to close and complete current projects, and expand sales and close of projects in our pipeline. General Working Capital $ 350,000 12% China Market Expansion Projects $ 2,000,000 66% Sales & Marketing Expenses $ 300,000 10% Research and Development $ 200,000 7% Public and Investor Relations $ 100,000 3% Corporate Development $ 50,000 2% Total Use of Funds $ 3,000,000 100%
30 Risks Factors - Environtech requires this first round of capital to assure we cover the costs of our market penetration schedule. - Cash flow risks are mitigated through either monthly or quarterly service fee payments over several years, which are paid by only reputable, industry leading customers. - We have a financing option built into our model that mitigates risks of capital cost outlay. - Our proprietary design has not been extensively tested in the market. Environtech mitigates this risk because - We are not dependant on any one technology. Our design is patent pending, and allows integration of currently available proven technologies - Our core know-how and experience stems from decades in advanced wastewater treatment methodologies, and in fulfilling challenging engineering, construction and installation assignments. - As we deliver more customized projects, we will continue developing our treatment designs and processes. - We have budgeted for continued, in-house technology design research and development. Technology Risks Financial Risks
31 We expect competitors to enter these markets. Environtech will compete aggressively using our current time-window to effectively capitalize on our: - extensive know-how, experience, and first mover position - patented design - delivery of best-in-class project execution and service - market development strategy targeting only reputable, industry leading hotel and mixed-use commercial property customers - quality reputation building via customer satisfaction and ¡°green¡± branding Our innovative business model is new and not completely tested. Our first six months communicating with our target customers has created strong buy-in to the model, which provides a complete solution customers have not seen previously. Senior executives have ownership stakes in the company. The design and engineering leadership have successfully cooperated on several large challenging wastewater projects. Our strategic partners are leaders in their respective fields, freeing up management to focus on grow the company. Risks Factors Business Model Risks Management Risks Market Risks
32 Environtech provides a compelling investment case A proprietary technology design and service solution, created from decades of successful experience in wastewater treatments and projects, unlocks an untapped market. A unique business model designed for the urgent needs of our target customers drives market adoption and sales growth A cohesive team of management and strategic partners combines decades of successful, industry leading track records of company building, project execution and service delivery, all aggressively addressing our niche markets. Summary A unique opportunity for investors to participate in the fast growth of a quality company, addressing a niche market and creating handsome returns.

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Environtech - Investor Introduction

  • 1. First-round Capital Raise Investor Presentation Strictly Confidential Working Draft
  • 2. 2 Confidentiality & Disclaimer The following document is for discussion purposes only. This document is furnished on a strictly confidential basis to a limited number of sophisticated investors and potential partners and is intended for authorized recipients only and may not be reproduced or distributed in any format without the express written approval of Environtech China. By accepting delivery of this document, the recipient agrees unconditionally to be bound by a strict duty not to disclose any information included in this document to any other person. If you do not wish to be bound by this confidentiality agreement, please return this document to Environtech China immediately. The receipt of the attached information is not to be taken as constituting the giving of investment advice by Environtech China to the recipient, nor to constitute such person a customer or client of Environtech China. The information attached hereto is not comprehensive and may be changed. Environtech China expressly disclaims any and all liability for representations, expressed or implied, contained in, or omissions from the attached information. In addition, certain portions of the information contained in this document has been obtained from sources outside of Environtech China.
  • 3. 3 Content Environtech at a Glance The Problem we Address Our Solution Target Markets Competition The Numbers Our Company The Investment Proposal
  • 4. 4 ENVIRONTECH at a Glance Proprietary water recycling solution, Untapped market niche in China Unique business model Urgently require effective treatment and reuse solutions. Reduces water costs, and improves water quality for reuse Unlocks an untapped market with first-mover advantage CHINA¡¯S SEVERE WATER CONSTRAINTS ENVIRONTECH¡¯S PROPRIETARY WATER RECYCLING SYSTEM OUR UNIQUE BUSINESS MODEL
  • 5. 5 The Problem We Address RISING WATER DEMAND & COSTS IN CHINA
  • 6. 6 China¡¯s Dramatic Need for Clean Water China¡¯s per capita water supply is 1/3 the world average In Northern China, even lower ¡­ with few cost- effective treatment solutions 7% 20% of China¡¯s water is in the North 400 cities in China have inadequate freshwater supplies Industrial water users face increasing pricing & treatment costs ¡­22% of global population ¡­exploding demand from urban migration and increasing wealth ¡­45% of China¡¯s population is in the North SHRINKING SUPPLY GROWING DEMANDVS of global freshwater
  • 7. 7 Market Drivers: Rising Price & Strict Policy Urban water and wastewater prices, especially in Northern China, are rising steadily Water prices, and regulations, particularly for commercial and industrial users, are expected to increase substantially over the next 3 years, City 2005 2009 2010 Beijing 3 rmb/ton 6 rmb/ton 7 rmb/ton Tianjin 3 rmb/ton 6 rmb/ton 6 rmb/ton Shanghai 1 rmb/ton 3 rmb/ton 3.5 rmb/ton Guangzhou 1 rmb/ton 2 rmb/ton 2 rmb/ton Sample Regulations Urban Water Pricing Source: h2o-china, c Beijing Commercial users of water cannot increase water usage from previous year Shanghai Commercial water supply can be restricted if residential water supply is at risk Qingdao Hotels above 20,000 sqm. must install and maintain water recycling systems
  • 9. 9 ENVIRONTECH¡¯s solution: Our Technology Re: Water ¡ñ? Proprietary water recycling design and solution ¡ñ? Recycling 70% of a property¡¯s recoverable greywater. ¡ñ? Superior water quality for reuse ¡ñ? Modular design can scale to meet any treatment volume ¡ñ? Customized engineering to optimize results for: ?? physical parameters of the site ?? specific wastewater contents ?? type and degree of treatment required ?? the purpose of water re-use TM Re:Water captures up to 100% of a property's non-toilet water¡­ ¡­ of which we can treat 70% for reuse in kitchen¡¯s and facilities¡­. ¡­ plus treat another 20% for landscaping and toilet flushing TM
  • 10. 10 Kitchens, spas, laundry, ¡­ Reuse (Toilet) Final Filtra5on Water So9ener Second Filtra5on First Filtra5on First Filtra5on Rainwater Filtration Discharge for Reuse Metered Water Supply Reuse (Landscape) ENVIRONTECH¡¯s Re:Water - Innovative ProcessTM High-quality Recycled Water for Reuse Re:Water captures metered water as it enters the property and treats it before use. TM Greywater to be treated Re:Water can also capture rainwater for treatment and reuse.. TM
  • 11. 11 ENVIRONTECH¡¯s solution: A Unique Business Model Compelling incentives for customer adoption Stable revenue generation for Environtech For CUSTOMERS For ENVIRONTECH ¨¹? A one-stop, multi-year water recycling & service solution ¨¹? No initial capital outlay ¨¹? Consistent cash flow income across 5 years. ¨¹? Break-even per project between 12 to 24 months (depending on wastewater volume).
  • 13. 13 Two Target Markets Leading hotels demand high quality water for rooms, spas, pools and food & beverage outlets STAR-Rated Hotels In China China as roughly 14,000 star-rated commercial hotels and over 5,000 government-run hotels. ENVIRONTECH will targets star-rated hotels in regions where our Re:Water solution is most urgently needed . ¨¹? require effective water reuse for for guests and facilities ¨¹? value competitive advantages of higher quality water supply ¨¹? pursue the marketing benefits gained through ¡°Green¡± branding Leading Hotel Brands 1 - TM
  • 14. 14 Benefits for Hotels Reduce Hotel Water Costs (by reusing recycled water) SIX bottom-line benefits.. ¡­ ONE seamless solution 1 2 Tax Incentives: 10% reduction on taxes (when using water recycling equipment) 3 Manage / Reduce Long Term Costs: Today¡¯s water rates LOCKED IN for the life of contract 4 No Up Front Costs : Fees paid through savings 5 Higher Quality Water Supply: Recycled water is often of higher quality than source water 6 Stable Water Supply: Storage of recycled water can provide 2 days of water onsite if city supply is interrupted
  • 15. 15 Two Target Markets Grade A office and mixed-use properties demand high-quality water for their facilities and tenants GRADE A OFFICE BUILDINGS & MIXED-USE PROPERTIES China¡¯s top 20 cities contain 30 M sqm. of Grade A office space, and by the end of 2030, this will grow 65% to total 50 M sqm. ¨¹? provide superior amenities, higher service standards ¨¹? have more water-related infrastructure ¨¹? all requiring larger volumes of higher quality water By marketing ¡°Green¡± credentials and certification, these facilities can increase both occupancy rates & rental fees from leading corporate, recreational, retail and luxury tenants Grade A Facilities 2 -
  • 16. 16 Benefits for Office & Mixed-use Properties In addition to similar cost, water quality and branding benefits for hotels, Office and mixed-use properties can also benefit from higher margins and new revenue streams: In an increasingly competitive sector, many landlords are looking to LEED (or similar ¡°green¡± certifications) as a point of differentiation Studies have shown that rents in LEED buildings are as much as 34.5% higher and vacancies 4.2% lower then in non- LEED buildings Source: Addressing China's Water Scarcity ¨¹? Water Recycling can add 10 points (ref: LEED Certified ¨C min. 40pts) ¨¹? LEED buildings outperform others in terms of rent margins and occupancy days ¨¹?As water prices rise, landlords service fees to ENVIRONTECH stay at the original baseline level (covering 70% of their water needs). Locked-in, 5-year Service Fees
  • 17. 17 Stage IIIStage IIStage I Target Market Sales Cycle Meet Client Water Audit Analysis (Profit) Proposal Design Procurement Engineering Installation Go Live Service Sales Cycle should be 14 ¨C 20 weeks from initial contact through to an installed, operating Re:Water system Stage I Timing 4-6 weeks Stage II Timing 4-8 weeks Stage III Timing ¡­ 5-years TM
  • 19. 19 Competitive Landscape A) Chinese and international water market giants (Siemens, GE, Veolia, Pentair, Tianjin Capital) are currently competing in much larger municipal and industrial projects B) Small and medium players (e.g. UV Pure, ITT) focus on products and services for specific treatment stages and processes First-mover advantage, best- in-class service, in an untapped market.. ¡­ Creates entry barriers to competitors Some of these companies, plus new start-ups, will enter our markets. ¨¹? Our target markets in China are massive ¨¹? ENVIRONTECH leverages a first-mover advantage to gain sales traction and satisfied customers in top-tier, high quality service segments ¨¹? Leave lower-end segments to potential competitors entering the market Potential Competitors ENVIRONTECH¡¯s Competitive Strategy
  • 21. 21 Market Revenue Projection N e w Projects Recurring Projects N e w Revenue (RMB (M) T o t a l Revenue RMB (M) T o t a l Revenue USD (M) Year 1 20 0 12 12 1.8 Year 2 40 20 24 36 5.3 Year 3 100 60 60 96 14.3 Year 4 100 160 60 156 23.3
  • 23. 23 ENVIRONTECH ¨C Development Milestones In first 9 months of operation, all strategic goals reached on time and on budget Milestone to date Q2 09 Q3 09 Q4 09 Q1 10 Founders launch Patent/trademark filing Shanghai Office Engineering Partners Asia Pacific Senior Management First Hotel LOI First Mixed-use LOI First sales contract Project Management and Service Partner Financing Partner First installation ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹ ¨¹
  • 24. 24 ENVIRONTECH - Experienced Team Industry Leaders ¡ì? 25 years in bringing companies public, managing public entities, and building companies in the US and China Field Specialists ¡ì? 50 years in combined waste water experience ¡ì? 25 year¡¯s experience in waste water recycling and water reclamation ¡ì? With our engineering partner, we have successfully designed and fulfilled over X number of wastewater treatment projects ranging from US$50,000 to over $US2 billion. Superior Business Development ¡ì? Strong track record of company deployment and leadership. Our staff members hold the following credentials: ¨C? Previous CEO of Jin Jiang Hotels - Previously built companies (in China) from 0 to 25 Million ¨C? Managed a Northern China Sales Force ¨C? Real Estate Consulting/Leasing for Mixed-use Projects Environtech is a start-up, composed of a small team of experts seamlessly combining long- term strategy, sales and execution Directors have been hand-picked based on specialized expertise
  • 25. 25 Our Core Team: Technology & Engineering Stephen J. Ratelle, President and Director of Water Projects. Mr. Ratelle has over 25 years experience in Project Management, Design and Advisory Services for large Water Treatment and Reclamation projects. Mr. Ratelle has promoted new water technologies, implemented best practices, and mentored junior technicians. During Mr. Ratelle¡¯s career, projects have included oversight of an, a 68 acre site with25 story condominium and a 50- story hotel and casino resort project; project manager of a leading Spa at a 28 story hotel and conference center, plus numerous wastewater treatment projects up to $2B. Most recently, Mr. Ratelle has been involved in developing and designing Re:Water? recycling systems. Alan Aguba, Vice President of Engineering. Mr. Aguba has over 25 years experience in progressively more responsible positions in major Construction Management, engineering, procurement and construction projects He has excelled in start-up and validation of technologically in challenging industries ranging from state-of-the-art petroleum refining and chemical processing and intelligent building, to a world scale water treatment and power generation facilities. He is currently managing the Chevron El-Segundo Refinery Capital Improvement Projects. Mr. Aguba works extensively with over 200 engineers in China.
  • 26. 26 Christopher L. Bachran, Senior Vice President, Managing Director of Asia Pacific. Chris has 35 years experience in the management of hotel operations in the US and Asia and is a hotel executive of the highest caliber. He has most recently served as President of Jin Jiang Hotels, the largest hotel group in China, Chief Operating Officer for Asia with Radisson Hotels, and has held several China and Asia Vice President and Director roles with Sheraton Asia Pacific Corporation. Patrick Woock, Vice President of Business Development. Mr. Woock¡¯s 7 years in China with start-up organizations and multi-national companies seeking to expand into the China Market brings extensive China Business Development experience to the team. Mr. Woock has a wealth of experience in establishing distribution, sales and supply chain channels, as well as negotiation and cross cultural communications skills. Before joining Environtech, Inc., Mr. Woock held senior positions for a number of firms in China Prior to China, he was a trader and broker on Wall Street. William Pryor, Senior Development Director Mr. Pryor has worked in Taipei and Shanghai for more than 5 years, with the majority of his experience under the direction Jones Lang LaSalle¡¯s Retail Shopping Center Department in Greater China, a Fortune 1000 commercial real estate firm with a presence in over 180 countries. During his China career, Mr. Pryor has provided market research, feasibility studies, strategic advice, and project planning and leasing in China to western, Japanese and Chinese companies entering China. Our Core Team: Operations & Sales
  • 28. 28 US$3 Million Equity Stake US$3 million This Offering has a minimum limit of $25,000 in aggregate offering proceeds and a maximum limit of $3,000,000 in aggregate offering proceeds. We will consider equity, preferred shares, and convertible debt for investment. US$3 million in equity can gain a 17% equity position. According to market conditions and the company¡¯s growth, we may pursue exit through a reverse merger listing, raise growth capital, or continue company growth and expansion organically. Ownership Maximum-Minimum Investment Exit Scenario
  • 29. 29 Use of Proceeds Proceeds from this offering will be used for to cover operating expenses, to close and complete current projects, and expand sales and close of projects in our pipeline. General Working Capital $ 350,000 12% China Market Expansion Projects $ 2,000,000 66% Sales & Marketing Expenses $ 300,000 10% Research and Development $ 200,000 7% Public and Investor Relations $ 100,000 3% Corporate Development $ 50,000 2% Total Use of Funds $ 3,000,000 100%
  • 30. 30 Risks Factors - Environtech requires this first round of capital to assure we cover the costs of our market penetration schedule. - Cash flow risks are mitigated through either monthly or quarterly service fee payments over several years, which are paid by only reputable, industry leading customers. - We have a financing option built into our model that mitigates risks of capital cost outlay. - Our proprietary design has not been extensively tested in the market. Environtech mitigates this risk because - We are not dependant on any one technology. Our design is patent pending, and allows integration of currently available proven technologies - Our core know-how and experience stems from decades in advanced wastewater treatment methodologies, and in fulfilling challenging engineering, construction and installation assignments. - As we deliver more customized projects, we will continue developing our treatment designs and processes. - We have budgeted for continued, in-house technology design research and development. Technology Risks Financial Risks
  • 31. 31 We expect competitors to enter these markets. Environtech will compete aggressively using our current time-window to effectively capitalize on our: - extensive know-how, experience, and first mover position - patented design - delivery of best-in-class project execution and service - market development strategy targeting only reputable, industry leading hotel and mixed-use commercial property customers - quality reputation building via customer satisfaction and ¡°green¡± branding Our innovative business model is new and not completely tested. Our first six months communicating with our target customers has created strong buy-in to the model, which provides a complete solution customers have not seen previously. Senior executives have ownership stakes in the company. The design and engineering leadership have successfully cooperated on several large challenging wastewater projects. Our strategic partners are leaders in their respective fields, freeing up management to focus on grow the company. Risks Factors Business Model Risks Management Risks Market Risks
  • 32. 32 Environtech provides a compelling investment case A proprietary technology design and service solution, created from decades of successful experience in wastewater treatments and projects, unlocks an untapped market. A unique business model designed for the urgent needs of our target customers drives market adoption and sales growth A cohesive team of management and strategic partners combines decades of successful, industry leading track records of company building, project execution and service delivery, all aggressively addressing our niche markets. Summary A unique opportunity for investors to participate in the fast growth of a quality company, addressing a niche market and creating handsome returns.