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The Company. Nasdaq OTC traded since March 9 th , 2010 Focus on Waste to $ Emissions prevention Invested till today: 1,200,000 $ Main share holders : Founders and private investors Operating in: Ghana, USA, and China
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The Company • Nasdaq OTC traded since March 9th, 2010 • Focus on • Waste to $ • Emissions prevention • Invested till today: 1,200,000 $ • Main share holders : Founders and private investors • Operating in: Ghana, USA, and China • Strong pipeline of projects, will start project execution in coming 6 months and start generating revenues in coming 12-18 months
Strategy • The Company is focused on preventing green house emissions while turning waste into revenue generating resource, including: • Energy • Compost • Carbon Credit • The Company is focused on BOT & BOO projects with a very high ROI and continuous revenues for long periods of time. • The Company is operating as the project developer and will execute the projects with EPC contractors. • In the last year the Company signed 10 projects and is starting to execute them now. • Completed financing of $3.4 MM for first 2 projects.
The Opportunity • The Company is taking a major international problem and turning it into a source of revenue. • There is unlimited, continuous production of waste and a big demand for the products that the Company knows how to produce out of this waste. • Carbon Credit: • Carbon credit market was worth $142 Billion in 2010 and by 2020 is expected to grow to $1.9 Trillion • Compost • The North American market for Compost produced from Diary Farm’s alone is estimated at over $1 Billion. • Renewable energy • The increase in electricity prices combined with the run off from nuclear energy created a huge, almost unlimited market for renewable energy.
Blue Sphere Management Blue Sphere is led by highly experienced team of executives with many years of experience in developing and managing environmental and energy projects world wide. • Eli Weinberg – ChairmanMr. Weinberg is an expert in the clean-tech sector and was Chairman of the environment desk at the Israeli Chamber of Commerce. Mr. Weinberg has managed several large organizations, including as CEO of Delta Galil Europe Ltd., CEO of Amnir Recycling Industries Ltd. (the leading Israeli company in the environment industry), CEO of Tradetex International Inc., and CFO of Scitex Europe S.A. Mr. Weinberg is experienced in running large multi national operations in developing countries. As CEO of Amnir Recycling Industries, Mr. Weinberg was involved in large scale waste management projects. • Shlomi Palas - CEOMr. Palas is a highly experienced entrepreneur and executive. He was a senior consultant with Mitzuv, a leading management consulting firm. For the past four years, he has specialized in the renewable and clean tech industries, and has significant experience in renewable and clean tech, large scale project management, off-take contracts with leading petrol companies, legal/financial structuring, and fundraising for these industries. He has also developed a large network in private and government sectors in developing countries.
Blue Sphere Management • Roy Amitzur – Executive VP Roy Amitzur is a world-renowned expert in environmental business. He served as a former CEO and Director of a number of israeli and foreign companies. Rouy has vast experience in international project execution and is bringing with him to Blue Sphere a large network of large system integrators, institutions and investors in the environmental market. • Mark Radom, Chief Carbon Project Developer Mr. Radom has worked in the “carbon” industry as legal counsel to carbon project developers and then as Chief Operating Officer and Chief Executive Officer of Carbon Markets Global Limited, a London-based carbon project developer, and Managing Director of Carbon MPV Limited, a Cyprus-based carbon project developer. Prior to this, Mr. Radom worked on Wall Street and in the City of London as a lawyer where he represented sovereigns, global investment banks and major companies across a broad range of capital raising and corporate transactions.
7 Projects – Immediate Execution • USA – Electricity and compost production from cattle manure in 4 farms. • Ghana– Carbon Credit at 2 landfills. • China – Electricity production from cattle manure – 1 huge project. • All above projects are signed and they are in different stages of moving forward towards execution. • Many additional projects in each of the above territories are ready to go into execution as 2nd wave. • We have additional projects in Cyprus and Greece which are signed and we are currently evaluating.
Ghana Projects • Signed Projects: 3 Landfills + 1 MSW Transfer Station • Expecting to sign in coming 6 months: 1 landfill + option to sludge treatment facility. • First 2 projects have started execution • Agreement was signed with B-pure for $3.4 MM project financing • B-Pure will be responsible for project execution • BlueSphere’s share in these projects will be 50% • Projects IRR: 44% and 34% • Project NPV: $8.1 MM and $3.5 MM • Started UN CER registration process • In contract negotiations with Vattenfall for the purchase of all CDMs that will be produced in Ghana and up to 9 projects
US Projects • We have established a JV with Stewartsmith, a privately owned company of which the owners have many years of activity in this market. • 50 Projects with dairy farms have been signed and LOIs were received from major US buyers for the Organic Compost. • We are planning to start executing projects at 4 farms. • DBF only – can start generating revenue in 6 months. • Electricity production - can start generating revenues in 18 months. • We are in negotiations with 3 potential investors for project financing of the initial 4 farms. • We are negotiating an option to work with Waterleau from Belgium as EPC for these projects.
Chinese Projects • We established partnership with Clinci - a leading Chinese provider of waste to energy and waste to compost solutions • Huishan project is signed and ready to go pending financing • Additional 14 projects ready to sign pending financing • Overall 15 projects data: • NPV > $550m • IRR > 35% • Required investment $152m • In negotiations with CLSA fund for over-all project financing
Capital Requirements • Blue Sphere currently has 7 signed projects ready to start. • They require a total of $72 Million in financing. • These projects are typically expected to provide payback of the total capital investment in 3 years. • Unleveraged IRRs for most of the projects are expected to be in the range of 22% - 40% (depending on the location) . • Cumulative EBITDA over the projects’ 20-year life is expected to reach five times the total capital investment (equity + debt financing).
Financing Options • Blue Sphere has a number of possible financing options: • Sell stock in Blue Sphere - Implement the projects and maintain 100% ownership on the projects • Project equity financing: Sell portions of one or more projects- decrease the equity interest that Blue Sphere holds in a project. • A combination of the two above funding methods - Equity investment of roughly 30% to 40% of the total capital required, All of the above options can be complemented by debt financing.
Blue Sphere Financial Projections • Annual revenue will reach $101-$113 Million within 7 years. • NPV after investment deduction will reach $260 within 7 years . • Average IRR for non leveraged capital will exceed 25%. • The above values will be achieved by entering into more projects in solid waste, manure, and agriculture waste treatment. • We will continue our strategy: mix high yield projects in emerging markets with lower risk projects in developed countries • These projections require an additional $35 MM in capital investment but only after a few of the initial signed projects are up and running.
Plan for the short term • Start the execution of the following: • 2 projects in Ghana • 1 project in the US • 1 project in China • Raise $1-2 MM for 12-24 months operational expenses • Start IR & PR activities in the US market • Sign strategic agreements with • 1-2 large CDM buyers • 1-2 EPC • Close financing for all the signed projects in China, Ghana and US.
Summary • The Company is active in a huge and rapidly growing market. • The Company has a highly experienced management team with a vast proven track record. • The Company is operating as a project developer and is focused on long term projects with IRR > 25%. • The Company completed the initial phase of generating a significant pipeline of projects. • The Company is moving into project execution and will start generating revenues in the next 12-18 months. • The Company is expected to have assets with NPV of about $260 MM in 7 years.
Waiver The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Bluesphere Corporation (“BSC”) and its projects and consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of securities or other investment. The information contained in this presentation has been prepared in good faith by BSC. However, no representation or warranty, expressed or implied, is made as to the accuracy, correctness, completeness or adequacy of any statement, estimates, opinions or other information contained in this presentation. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Litigation Reform Act of 1995, which are subject to risks and uncertainties and may change at any time. Among these are: (i) uncertainties regarding our ability to obtain adequate financing on a timely basis including financing for the projects described in this release and other specific projects, (ii) uncertainties regarding the future of applicable renewable energy markets, the Kyoto Protocol and binding greenhouse gas warming commitments of industrialized countries, (iii) uncertainties regarding the market for and value of carbon credits, as well as the duration and amount of estimated emissions from specific projects, (iv) political and governmental risks associated with the foreign countries in which we operate, (v) unanticipated delays associated with project implementation including designing, constructing and equipping projects, as well as delays in obtaining required host country and United Nations approvals, (vi) the development stage of our business and (vii) our lack of operating history. As such, there is no assurance that the initiatives described in the press release will be successfully implemented or meet expectations. Accordingly, BSC, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of events referred to in this presentation will occur as contemplated. The Company assumes no obligation to update the information in this presentation.
