August 31 th – September 1 st 2015 - ItN Nanovation · ItN Water Filtration is a brand of SCC –...

ItN Water Filtration is a brand of

SCC – Small Cap Conference

August 31th – September 1st 2015

Lutz Bungeroth

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Sep., 1st 2015 / LB Small Cap Conference / Frankfurt

Disclaimer

Future-oriented Statements

This information contains statements about the future that

are based on current suppositions and estimates by the

management of ItN Nanovation AG. Future-oriented

statements are indicated by the use of words such as

“expect”, “intend”, “plan”, “foresee”, “assume”, “believe”,

“estimate” and similar expressions. These statements are

not to be understood as guarantees that these

expectations will prove to be correct. The future

development and results actually achieved by

ItN Nanovation and its affiliated companies depend on a

number of risks and uncertain factors, and may therefore

deviate considerably from the future-oriented statements.

Many of these factors lie outside ItN Nanovation’s sphere

of influence and cannot be predicted accurately, e.g. the

future economic climate and the behavior of competitors

and other market participants. No plans are in place to

update these future-oriented statements; neither does ItN

assume any particular obligation to do so.


The company ItN

3


Investment highlights

� ItN Nanovation AG (“ItN”) has a clear focus on water filtration

� ItN is the technology leader in ceramic flat membranes for water filtration with about 50 patents in this technology

� ItN’s Ceramic Flat Membranes are offering the newest technology with little competition

� ItN Water Filtration is already focused on groundwater and sewage water treatment

� With Cer@Sorp ItN has a powerful application for Radium and Arsenic removal in ground water

� ItN has got several big orders for groundwater from Saudi-Arabia

� Sales is expected to rise strongly within the next years

� ItN is building up a new segment seawater filtration within the next years

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Company key facts

� ItN Nanovation AG (“ItN”), headquartered in

Saarbrucken, Germany, is the technology leader

in ceramic membranes for water filtration

� The membranes are used for drinking water and

wastewater treatment with most deployment so

far being in the filtration of ground and surface

water for dinking water treatment

� Core know-how are the nano-coating and

process application for water treatment

� ItN demonstrated in numerous projects that its

membranes clearly outperform other solutions

(e.g. sand and polymer filters) in terms of

filtration performance, flux rate, robustness,

lifetime and cost

� ItN’s membrane for deep groundwater

filtration was picked as the technology of

choice by the Saudi Arabian Ministry of Water

& Electricity due to significantly longer

lifetime and impressive results regarding the

removal of challenging substances

� In addition, to its strong track record in Saudi

Arabia, ItN has demonstrated the superiority

of its filtration systems in projects in the USA

and Germany

� CeraNovis GmbH, ItN´s

German subsidiary, is specialized in nano-

based technical coatings for various industrial

applications

Small Cap Conference / Frankfurt

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Sep., 1st 2015 / LB

Sep., 1st 2015 / LB

Economic and ecological timelineC

om

pa

ny

mile

sto

nes

Pro

du

ct/ te

chn

olo

gy

mile

sto

nes

2013 2014 2015

Prequalified for projects worth

USD 150 million (thereof USD 25

million qualified) to be delivered over

the next 30 months

Enhancing existing ground-water

treatment plant in Buraydah (SA)

increasing capacity by 100% and recovery

rate to 99.6% at very low operating cost

Sewage treatment plant in Germany using the most

advanced ceramic flat membrane

technology resulting in an extremely pure

effluent

Awarded five further projects in Saudi

Arabia worth USD 15 million in

2013 and 2014

ItN invents new adsorption technology Cer@Sorp

for Ra + As-Removal

ItN receives largest order in history of 6.6 Mio.-USD

Development process

technologyseawater filtration

First excellent laboratory

test results for the new

seawater desalination technology


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Sep., 1st 2015 / LB

The management board

� Lutz Bungeroth, born in 1960, has been a member of ItN's board since 2009.

� He holds a degree in mechanical engineering and is familiar with the industrial sector.

� In the past decades he has led and restructured several SME companies, securing their market success.

� He is used to acting on an international level and to addressing diverse markets.

Lutz BungerothChief Executive Officer


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Sep., 1st 2015 / LB

Concern structure

Name ItN Nanovation AG CeraNovis GmbH

Founded 2000 2012

Place of business Saarbruecken, Germany Saarbruecken, Germany

Number of employees 30(10 scientists / engineers)

16(6 scientists / engineers)

IPO 2006 (ISIN: DE000A0JL461)

General Standard 2009

Patents 18 families/ 69 applications/ 47 granted

13 families/ 46 applications/ 19 granted


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Technology and Products

Sep., 1st 2015 / LB

Our technology

feed

Permeate

35 MembranesPermeate

permeatechannel

10 µm

�Membrane surface

�Filter active layer

�Membrane body


10

Sep., 1st 2015 / LB

Latest technology, very few competitors

Ideal combination of robustness of sand

filters and filtration-quality of polymeric

membranes, high resistance against chemical

substances, pressure changes and temperature

changes

High flux rates

Almost no chemical additives needed for pre-

treatment leads to low OPEX

Low energy consumption; very small pressure

difference

Easy to clean with high pressure water back-

wash with/without citric acid

Very high Log Removal Value of 4.7

(out of 104.7 Bacteria – only 1 is passing the

membrane)

Very little water consumption

(Mass-Balance close to 100%)

Very high availability and high capacity

utilization through smart cleaning and back-

wash procedures

Advantages of ItN´s Ceramic Flat Membranes®


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Sep., 1st 2015 / LB

Advantages of ItN´s Ceramic Flat Membranes®

3–5x Prolonged lifetime compared to other ultrafiltration solutions

up to

2x Higher flux rate

more than

50% Less chemical ingredients for cleaning

98% Capacity utilisation (based on 24/7)

more than

50 % Lower labor cost for maintenance and operational process

more than

50% Lower energy consumption

Higher heat, pressure and chemical tolerance on process fluctuations+

in comparison to the traditional sand filter and polymer filter solution


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Comparison with conventional solutions

� The Ceramic Flat Membrane® combines all advantages of sand filters and polymer filters respectively, i.e. the robustness of sand filters and filtration performance of polymer filters

1

2

3Performance: Quality of permeate

Sand filters

Polymer filters

� Traditional method for thousands of years

� Robust solution

� Holds back only solids to a certain extent and

some organics making massive and expensive

pretreatment with chemicals necessary (e.g. for

bacteria elimination)

� Sand has to be regularly renewed and disposed

as toxic waste

� Around for about 10 – 15 years

� High competition due to many players

offering filters without distinction

� Good filtration performance, but low flux

rate and robustness

� Frequent cleaning and use of chemicals

reduces lifetime (only 3-4 years)

� Repairs barely feasible

� Cannot be used for higher temperatures

(e.g. deep groundwater must be cooled

down)

� Latest technology with little

competition

� Strong filtration performance due to

high resistance against chemical

substances

� Low operation cost as a result of little

use of chemical additives, low energy

consumption and maintenance

� Superior resistance against pressure

and temperature changes

� High flux rates and little water

consumption

� Excellent availability and capacity

utilization through smart cleaning and

back-wash procedures as well as long

lifetime

Evolution

Ceramic Flat Membranes®


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Sep., 1st 2015 / LB

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Sep., 1st 2015 / LB

Different realms of application

Drinking water

Water reuse

Long lifetime

Low operating cost

High flux rates

Superior filtration

Little use of chemicals

Excellent robustness

Latest technology

ItN’s

target markets

Surface water

Sea water desalination

Industrial wastewater

Ground- water

Municipal sewage


Sep., 1st 2015 / LB

Comprehensive product program

Drinking Water Sewage

Med

ium

Sm

all

Module T-Series HP-D

Module T-Series HP-S

Connected Filtration Towers

Slim Fit Tank R Filtration Rack Connected Filtration Towers

MBCR Filtration Container

Single Filtration Towers

Single Filtration Towers

Slim Fit Tank CCRO Filtration Container

Pro

jec

t S

ize


15


Deep Groundwater

16

Application in deep ground water with sandfilters

M

aerationtower

from well

inletpump

air blower

air blower

rapidmixer

Cl2(perm)

chlorination HMO(Hydrogenous Manganese Oxide)

Fe(OH)3 ↓

detention tank

adsorption tank

Ra ads(HMO)

sand filter

to RO

MnO2(perm.)

O2(perm)

O2(clean)

H2SRn


17

Application in deep ground water - Ra-removal with Cer@Sorp®

aerationtower

from well

inletpump

air blower

Cl2(perm)

chlorination Cer@Sorp®

(nano Hydrogenous Manganese Oxide)

Fe(OH)3 ↓

detention tank

MnO2(clean)

air blowerfiltration tank

CFMUF

filtration pump

to RO

sludge

O2(clean)

O2(perm)

H2SRn


18

Ground water projects in Saudi Arabia

1. Al Maghma

2. Al Quaiyah

3. Buraydah North

4. Buraydah Main

5. Al Hameima Retrofit

6. Al Hameima Newbuild

7. Al Tabouk


19

Bidding process in Saudi Arabia

MoWE(local directorate)

Consultant(to directorate)

3. epc-contractor(local civil works)


nth epc-contractor(local civil works)



electro-mechanics(global company)



componentfilters

(global company)

componentpumps

(global company)

componentpipes

(global company)

componentcontrols

(global company)

componentsensors

(global company)

Preparation Bidding Ordering Execution

6-12 month 3-9 month 6-12 month 24-36 month


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Sep., 1st 2015 / LB

Ground water projects in Saudi Arabia(appr. 330,- €/m²)

* according to project list dated March 27th, 2015

19.936m215.040

m2

36.224m2

80.416m2

92.764m2


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Sep., 1st 2015 / LB

Some of ItN´s projects in Saudi Arabia

Al Quaiyah

• Application: Deep ground water plant newbuild

• Location: Al Quaiyah in Riyadh region

• Installation: December 2015

• Completion: November 2016

• Client: Veolia Water Systems Riyadh

• Capacity: 30,000 m3/d

• Background:

– Local directorate modified specification from sandfilter to

ceramic flat sheet membranes after excellent results of ItN

field test at Buraydah.

– Veolia changed design to ItN ceramic flat sheet membranes

in spite of own membrane company in house.

• Results:

– The residual TSS after the ceramic flat sheet membranes will

be so low, that the reverse osmosis behind the ultrafiltration

membranes works at much higher efficiency

– Incorporating ItN’s new adsorption technology reduces

Radium contamination significantly.

Al Tabouk

• Application: Deep ground water plant newbuild

• Location: City of Tabouk in Al Tabouk-region

• Installation: November 2016

• Completion: December 2018

• Client: Wetico Water Technologies Riyadh

• Capacity: 150,000 m3/d

• Background:

– High iron concentration in water caused high cost for existing

groundwater treatment plant due to use of softener system.

– Operator achieved cost reduction by forgoing softener which,

however, had negative impact on plant capacity, recovery

rates and reverse osmosis.

• Results:

– The implementation of ItN’s ceramic flat membrane lead to

excellent water quality (removal of iron and manganese) and

max. recovery rates

– Excellent reverse osmosis feed quality and stable operation

with minimum cleaning requirements.


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Seawater filtration

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Market data - seawater desalination

� Most desalination plants are gathered at shore lines in tropical and warm areas.

� The highest market share is gathered at the Arabian Peninsula.

� Desalination of seawater by evaporation is up to 5 times more expensive than using reverse osmosis instead


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Sep., 1st 2015 / LB

Seawater desalination in Saudi Arabia

Water Supply in Saudi Arabia until 2050

� Water use/ person in Saudi Arabia is 91 % higher than the international average. (source: SWCC)

� 70 % of the water use in Saudi Arabia is covered by seawater desalination plants.

� Saudi Arabia is the biggest producer of desalinated water in the world (4.6 Mio.-m3/d)

� The seawater desalination market is many times higher than the application in ground water

� Saudi Arabian´s government actively pursues the development of water desalination capacities: ~25 Mrd.-US-$ investment (2005-2013)

� The governmental National Water Company (NWC) intends to invest ~ 66 Mrd.-USD in new plants and improvement measures


25

Seawater desalination around the Arabian Gulf

MSF (Multi-stage flash) ; MED (Multi effect dist.) and RO (reserve osmosis) seawater desalination plants in the Arabian Persian Gulf; m3/d

Source: 2010 LATTEMANN


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The old process with sandfilters


from sea

seawaterintakepump

M

rapidmixer

Cl2(perm)

Ch

lori

na

tio

n

mixing tank

coagulationtank

coagulationflocculation

filtrationpump

to RO

roughscreen

H3O+

(perm)

Ac

id

PAC(perm)

Co

ag

ula

nt

multimediasandfilter

(perm)De

-Ch

lori

na

tio

n

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The new process with ceramic flat membranes


from sea

seawaterintakepump

roughscreen M

air blower

slowmixer

filtration tank

filtrationpump

to RO

sludge

FeCl3(perm.)

O3(perm.)

O2(aeration)

air blower

ph

-ad

jus

tme

nt

flo

cc

ula

tio

n

flotation

sedimentation

Fe(OH)3 ↓

H3O+

(perm)

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Application in seawater process comparison

M

M

Traditional process with sand filter

CFM-process with ceramic membranes

− high consumption of different chemicals− complex civil works lead to high CAPEX− log removal value bacteria very low (< 1.5)− low effluent quality with negative effect on RO− sandfilter is robust but not easy to clean− high energy consumption for high pressure

pump of the multi media sandfilter− complicated de-chlorination required to protect

RO against damages− sandfilter-housing mostly from steel is sensitive

to corrosion

� Low consumption of two common chemicals� Simple civil works with low CAPEX� Log removal value bacteria high (> 4.5)� Highest effluent quality boosts RO� Robust as a sandfilter and easy to clean� Low energy consumption for suction pump with only 100

mbar to 400 mbar� No de-chlorination required as mechanical removal of

bacteria� Membranes and racks are made of ceramics and

polymers -> no corrosion problem


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Challenges at the seawater desalination

Special challenges at seawater treatment are:

� High water temperatures� High saltiness and a lot of biology� Special task: „Algy bloom season“


New rack-designin cooperation with

To Do´s of ItN at the seawater desalination


2015 2016 2017 2018 2019

Process-design

Mechanical-design

Plant-automatisation

Laboratory tests

Pilottest

Fieldtest

3D-Design

sample testing

tooling production

Software design

Hardware Layout

Projects

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32

The market for ItN


Seawater150-200 mio-$

p.a.

DeepGroundwater

25 mio-$ p.a.

The market for deep groundwater is a challenging but lucrativeniche for ItN.

The market for seawater is globaland offers a huge potential…


Financials

33

Business year 2014in T-€

� Increase in turnover of 63 % � Increase in foreign sales of 109 % � Number of employees increased by 30 %

(32 > 42)

� Temporary quality problems of the production lead to disproportionately cost of materials

� By change of supplier, quality problems solved� Profit below planned figures caused by special

factors

2014

2013

2.640

4.3013.518

9.166

-3.542 -4.389


34

Forecast sales until 2016 (concern)in Mio.-€

� Based on forecast: current project pipeline and final negotiations� 1.3 Mio-€ turnover (after 1.6 Mio-€ in the previous year) and -1.9 Mio-€ EBITDA

(after -2,5 Mio-€ in the previous year) in the first half 2015 � Order receipt 2014/2015 until 15 Mio.-€� 2015 still red figures� For the present: the project business will stay temporally volatile� Turnover and operating profit of seawater desalination first since about 2020

4.3

10 - 15

20 - 2525

20

15

10

5

0


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Capital structure

Shareholder structure

Institutional investors

Corporate private investors

Free Float (incl. Management and staff)

Principal shareholders (ca.)

Fam. Stoll 49,5 %Nanostart AG 18,0 %Free Float 25,5 %

Chart since Jul 2012Total number of shares 13.520.207

ISIN DE000A0JL461

WKN A0JL46

Average number of shares traded monthly

327.542 (Jul 2015)

Designated Sponsor Oddo Seydler Bank AG

Market Segment General Standard (Regulated Market)

23,9 %

50,6 %

25,5 %


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Summary

� ItN has a proven technology for the filtration of groundwater and sewage water

� The new segment seawater desalination opens the access to a very big market

� ItN Technology advantage: low operating costs and superior filtration

� The orders for the ItN solutions are rising

� Turnover of ItN will rise the coming years; forecast for 2015 and 2016 together 20 – 25 Mio- €

� Sweet water and drinking water are rare in most parts of the world, demand will rise strongly

� Therefore the water solutions from ItN have a huge market potential


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ItN Water Filtration is a brand of

Thank you for your attention!

Contact

ItN Nanovation AGUntertuerkheimer Straße 2566117 Saarbruecken GermanyTel.: +49 (0) 681 5001-460Fax: +49 (0) 681 5001-499e-mail: [email protected]

Small Cap Conference / FrankfurtSep., 1st 2015 / LB

August 31 th – September 1 st 2015 - ItN Nanovation · ItN Water Filtration is a brand of SCC –...

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