TSX.V:
STT
CORPORATE
PRESENTATION
November
2015
TSX.V:
STT
FORWARD
LOOKING
STATEMENT
This presentation may contain forward‐looking statements that reflect current views, including
the company’s objectives, projections, outlook, estimates, expectations or predictions, and
contain forward‐looking information with respect to future events.
STT Enviro Corp. cautions that such information involves risk and uncertainty and that actual
results could differ materially from those contained in them. In addition, certain material factors
and assumptions were applied in drawing the conclusions or making the forecasts or projections
contained in them which are subject to change.
Additional information about the material factors that could cause the results to differ materially,
and the material factors or assumptions that were applied, are contained in STT Enviro Corp’s
press releases, current financial statements and MD&A for first and second quarter 2015 and
year‐ended 2014, all of which are available on SEDAR.
2Business
plan
– roll
up
of
Niche
market
Environmental/Industrial
companies
where
opportunity
exists
to
dominate
the
sector
to
save
money
for
its
industrial
clients
while
improving
an
environmental
outcome
or
minimizing
the
impact
on
the
environment
in
each
of
its
businesses.
TSX.V:
STT
THE
PILLARS
OF
OUR
SUCCESS
4
Cost
Competitiveness
Focused on reducing costs, improving efficiencies and leveraging
partnerships internally and for our customers
Strong
Talent
Engagement
Culture
Multidimensional experienced team who thrive on creative problem
solving for our customers
Environmental
Commitment
Concern over the environment is growing, it is a strong motivator to
millennials and it is getting more and more regulated
Capital
Discipline
Using cash and appropriately leveraged capital to ensure highly
accretive acquisitions
•
Corporate budget and financial goals
•
Acquisition process
•
Raising capital and capital allocation
•
Major market trends and business cycles
•
Current marketing relevance
•
HR and talent engagement
BUSINESS
STRUCTURE
Corporate
head
office
focused
on
major
trends
and
marketing
Business
units
focused
on
cash
generation
and
efficiency
•
Business unit management of operations
•
Identification of sector opportunities both
organic and acquisition
•
Sales direction and goals
•
Business unit budget and achievement
•
Strategic relevance of current products
and businesses
TSX.V:
STT
At
Present:
TWO
BUSINESESS
DRIVING
ORGANIC
GROWTH
Cost saving engineering solutions that respect the environment
STT
Systems
&
Solutions
is
focused
on
the
long
term
management
of
(chemical
make
down)
environmental
systems
to
neutralize
some
industrial
byproducts (mainly
acidity).
It
currently
provides
this
service
throughout
North
and
South
America
with
global
contracts
in
locations
as
distant
as
Southeast
Asia.
SYSTEMS
&
SOLUTIONS
STT
Tanks
&
Industrial
engineers
and
supplies
liquid
and
bulk
material
storage
and
handling
to
the
municipal,
industrial,
mining
and
oil
&
gas
sectors in
western
Canada
through
its
exclusive
partnership
with
CST
Storage.
TANKS
&
INDUSTRIAL
6
TSX.V: STT
STT
ENVIRO
CORP
A growth story that has only just begun
In
four
years
the
company
has
gone
from
almost
insolvent
to
what
is
now
a
dynamic
and
fast
growing
engineering
firm
with
20%
compounded
growth
and
a
strong
sales
backlog.
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2010 2011 2012 2013 2014 2015 2016
20%
Compounded
Growth
Rate
Growth at 20%
TSX.V:
STT
CAPITAL
STRUCTURE
AND
SHARE
PERFORMANCE
Strong financial position to support growth
8
Outstanding
46,772,525
Fully
Diluted
51,412,525
Share
Structure
(as at 04NOV15)
Strong
Financial
Position
$5.6
M
in
working
capital
$25
M
in
sales
backlog
Zero
debt
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40
Share
Price
Chart
October 2013 ‐October 2015
Avg.
Daily
Trading
Volume
2015
127,966
2014
62,808
THE
FINANCIAL
HISTORY
– A
TURNAROUND
With income growth and increased margins
EBITDA
NET
INCOME
GROSS
MARGINS
19% 22% 24% 26% 31% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $853 $953 $1.0M $1.2M FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 ‐$1.5M $2.1M $2.5M $2.7M $2.2M FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 ‐$2.3 MTSX.V:
STT
RESULT:
DEBT
REDUCTION
&
CASH
GENERATION
Debt free + unencumbered working capital of $5.6 M
10Debt
Working Capital ‐$8,295,491 $1,978,835 $537,166 $1,458,955 $5,562,105 ‐$10,000,000 ‐$8,000,000 ‐$6,000,000 ‐$4,000,000 ‐$2,000,000 $‐ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,00031‐Mar‐11 31‐Mar‐12 31‐Mar‐13 31‐Mar‐14 31‐Mar‐15
Current portion of term debt Long‐term portion of term debt Working Capital
STT
SYSTEMS
&
SOLUTIONS
Chemical Makedown Systems
Business
Snapshot
Sectors:
Mining Oil & Gas Power
Sales Reach: Global (but primarily)
North America
South America
Australia
Southeast Asia
What we do:
Engineering, project management and installation of
complete systems including truck unloading, storage
(silos), flow promotion, makedown systems, distribution
and instrumentation and controls.
Aftermarket and lifecycle support for systems customers
(end users) to improve efficiency and reduce the
operating cost of their systems.
Market Cycle:
Down part of the market cycle due to both the mining
sector and oil price decline lead us to developing
broader aftermarket business with great margins and
TSX.V:
STT
STT
SYSTEMS
&
SOLUTIONS
Chemical Makedown Systems
12
• Own proprietary ZMI Portec Slaker technology for
the oil & gas sector
• Over 1,000 installed systems
• Cost effective modular designs
• Exclusive agreement with Metso covering North
and South America for the VERTIMILL Slaker.
Patented Vertimill retrofit which improves slaking
performance and reduces cost for customers
• On‐going research and development on lime slaking
reactivity that can reduce their lime consumption
by up to 40%. For a small mine in Ontario this
meant savings of $350,000 annually or $1.7 million
over 5 years
• Reoccurring revenue through service programs such
as our Applied Care Program
Competitive
Advantages
TSX.V: STT
TSX.V: STT
STT
TANKS
&
INDUSTRIAL
Bolted tanks and silos
Business
Snapshot
Sectors:
Oil & Gas Municipal Industrial Construction Sales Reach: Western Canada What we do:
Supplies liquid and bulk material storage
and handling through an exclusive
agreement with CST Storage.
Market Cycle:
Down part of the market cycle due oil prices
made our cost effectiveness more relevant
and we added new markets such as cement
TSX.V:
STT
STT
TANKS
&
INDUSTRIAL
Bolted tanks and silos
14
• Bolted tanks are 25‐30% cheaper than the alternative
(field welded)
• Construction time is 25 to 50% less
• Coatings last 2‐4x longer
• Reduced environmental footprint
• Safer work and fewer workers
• Bolted silos can be deconstructed (versus cement for
example) when no longer required
• Internal engineering expertise to provide the design for
the elevators and conveyance systems for transload
systems
Competitive
Advantages
REVENUE
BY
DIVISION
‐
BUILDING
IN
TOUGH
TIMES
Current Backlog $25 million
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2010 2011 2012 2013 2014 2015F Systems Tanks Solutions•
Current Backlog $25 million low
oil
prices
are making bolted
tanks a “must consider”
technology in the oil business
•
Scale
of
projects
– more large
projects ($3 million to $15
million) than ever before.
•
Margin
Growth
– highest
margin business has grown by
over 125%
•
New
business
sectors
–
transload systems for chemical,
cement, frac sand and fly ash
TSX.V:
STT
16•
A
strong
cash
position
and
unleveraged
capital
allows highly accretive acquisitions.
•
Financial
backers
– an American following of “family offices” who see the value in the
company and who financed the $2.5 million raise. Growing institutional interest.
•
Top
‐
tier
multidimensional
engineering
talent
that can be applied to a variety of
industries and applications
POTENTIAL
ACQUSITIONS
SHOULD
TICK
THREE
BOXES
Provide
recurring
revenue
Provide
diversification
Utilize
our
highly
specialized
team
of
engineers
Add
to
our
environmental
offering
TARGETS
COULD
BE
•
In
a
niche
market
or
a
tuck
in
to
current
business
•
Either
public
or
private
•
US
is
preferred,
but
not
necessary
OUR
NEXT
PHASE
OF
GROWTH
– ACQUISITIONS
INVESTMENT
HIGHLIGHTS
•
A top quality operator with a growing international customer base
•
Proven management success
•
Projected 2015 revenue up over 250% since 2010
•
Increased gross margins to 31%, up 63% in 5 years
•
Eliminated debt
•
Backlog has been built on growth in new sectors
•
Both continued organic growth and targeted acquisitions will provide
accretive growth and shareholder upside as well as revenue diversification
TSX.V:
STT
Contact
Us
18
Investor
Relations
David Deacon, CEO Tel: +1 905‐693‐9301
Email: [email protected]
Holly Hendershot, Director of Corporate Affairs
Tel: +1 905‐875‐5584
Email: [email protected]
Corporate
Offices
Milton, Ontario
Tel: +1 905‐693‐9301
Richmond, British Columbia
