Evozyme Presentation
Road Building and Repair is a Large, Growing and Greening Market
• Billions are spent globally each year on road building and
maintenance
• Developed country road networks have deteriorated and will
require significant investments over the next several years
• Much of the developing world’s infrastructure remains to be built
• Factor prices for road building materials continue to rise
• As the world economy stalls, government leaders and developers
will look to cost saving technologies as a primary remedy with
green attributes being an important consideration
Road builders will continue to feel the pain of shrinking margins
Governments will continue to need more roads for less money
Evozyme Provides Compelling Cost Savings and Other Product Benefits
• Saves 20 – 40% of the cost of building a new road
• Cuts lifetime road maintenance costs by upwards of 50%
• Reduces construction time, labor costs and project complexity
• Significantly ‘greens’ a road’s environmental profile
• Low shipping and transportation costs
• Is easy to use, requires no special training and is already approved
in a number of US states and foreign countries
• Benefits can be shared by multiple parties in the supply chain
®
Evozyme is a patent-pending, biomass-based liquid formula that
hardens local soil into a sustainable road sub-base
100%
ASPHALT COURSE
100%
ASPHALT COURSE
BASE COURSE
BASE COURSE
BASE COURSE
SUBGRADE w/Evozyme
®
SUBGRADE
•
Strengthens subgrades by as much as 200%, allowing for a significant reduction in aggregate base
rock – and associated costs – required to achieve strength targets
•
Is applied directly to local subgrade soil using existing construction processes
•
Cures rapidly for little interruption to construction process
•
Can be explained to and understood by a construction crew in a matter of minutes
Evozyme is sold in liquid concentrate form and can be inexpensively and
quickly shipped to construction sites around the world in under one week
•
Evozyme’ core technology is a proprietary formulation of enzymes, surfactants and
other organic components, manufactured in California
•
First multi-enzyme product on the market
•
Only enzyme product proven to work by the US Army Corps of Engineers
Per mile, Evozyme can save up to 40% of the cost of a new road
Representative per Mile Cost Analysis
Building Element
Cost per Mile
With Evozyme
Excavation and Preparation
$200,000
$150,000
Granular Sub-base
$120,000
$0 – 40,000
Aggregate Base Course
$400,000
$150 – 300,000
Asphalt for Pavement
$200,000
$200,000
Miscellaneous
$80,000
$80,000
Evozyme
Total Cost per Mile
Savings with Evozyme
$20,000 – 30,000
$1,000,000
$600 – $800,000
20 – 40%
Using Evozyme dramatically reduces carbon footprint of road projects
Per mile…
10,000+ tons of
mined rock
•
•
500+ truck trips
800+ gallons
of gas
Evozyme itself is completely non-toxic, non-hazardous and bio-degradable
‘Green’ roads movement is just beginning, with new orgs. and funding forthcoming
And roads are just the beginning of the opportunity…
•
Evozyme has a number of additional applications in the construction space
– Subgrade modification – pot hole repair – pipe bed and cut back fill – parking lots and
driveways – railway embankments – slopes – dust abatement
– Lime treatment replacement for soil stabilization. Evozyme routinely beats lime
treatment in lab tests, is far more eco-friendly and is 3 – 5 times less expensive than lime
(see appendix).
Evozyme® beats alternative soil stabilization products on performance, cost and
environmental impact
®
Evozyme
Single
Enzymes
Proven Effective
✔
Long Lasting
✔
Broad Applicability
✔
Cost Effective
✔
✔
Easy to Transport
✔
✔
Environmentally
Sound
✔
✔
Polymers
Lime
✔
✔
✔
✔
✔
✔
The business is gaining a great deal of momentum and traction after several
years of operational milestones in an advanced R&D stage
•
Over 30 demonstration roads built on 5 continents, none of which have needed any
maintenance or repair in over 10 years
•
Highly successful lab tests around the world with multiple soil types
–
•
Approved for use in multiple countries and US states
–
–
•
US Army Corps of Engineers, Minn DOT, Tx DOT, several private labs
New York, California, Utah, Washington
Israel, Thailand, Venezuela, Brazil, Costa Rica, Kenya, Malawi, Former USSR
Currently in use with first commercial customers:
– National Grid / NYC DOT
– Lafarge (Colorado mine)
Venezuela (Agricultural road network)
–
“We have tested a number of enzyme products in the past and this is the first
enzyme product tested that has substantially increased soil strength”
- US Army Corps of Engineers
Market information – details and sources
•
Much of the developing world’s infrastructure remains to be built
By 2018, it is expected that the stock of paved roads should rise by 60% in China and
Vietnam, 30% in India, Indonesia, and Bangladesh. Growth in Mexico, Russia, Pakistan, and
Brazil will vary between 15% and 25%. In dollar terms, these figures translate to an expected
$900bn spent on road construction outside of the United States.
-Goldman Sachs, Global Economics Paper No: 166, Building The World: Mapping
Infrastructure Demand.
•
Developed country road networks have deteriorated and will require significant
investments over the next several years
The American Society of Civil Engineers (ASCE) estimated in January, 2009, that the US$2.2trn
needs to be spent over the next five years just to bring American infrastructure up to par. The
ASCE estimates that US roads alone require $186bn a year in substantial improvements.
-Business Monitor International, United States Infrastructure Report Q2 2009.
Market information – details and sources
•
Factor prices for road building continue to rise
ARTBA estimates road construction costs will continue their 6 – 8% annual growth rate.
Tennessee Department of Transportation’s Bituminous Index is up 236% since 01/2000.
•
Population growth will put further strain on road systems
Specifically, the majority of the world’s largest cities will be located in today’s emerging markets. By 2050,
it is projected that an extra 3.1bn people will live in urban areas, of which 1.8bn will be in Asia and 900m
in Africa. Besides putting a heavier toll on existing infrastructure, the growing demand will drive global
prices for materials such as cement and asphalt.
-Business Monitor International, China Infrastructure Report Q2 2009
•
Environmental sensitivity will continue to be a differentiator
Witness emergence of ‘green’ preferences in US govt. contracting.
“As early as 2003, 78% of Europe’s fund managers and analysis predicted that sound management of
environmental risks would increase a company’s valuation over the long term.”
- Deloitte - European Powers of Construction 2008
• Carbon footprint of a mile of new road can be astronomical
“As a result, it is estimated that the most energy was consumed in the manufacturing stage
of construction materials, with consumption of 1,525.8 tons of oil equivalent per functional
unit (~1 km and four lanes of highway).”
-Kwangho Park et al., “Quantitative Assessment of Environmental Impacts on Life Cycle of Highways,”
Journal of Construction Engineering and Management, Vol 129, January/February 2003
Evozyme has excelled in numerous Independent Lab Tests
Laboratory
Soil Type
Improvement
US Army Corps of Eng.
Clay
41%
University of Minnesota / DOT
Multiple
76%
MT Labs, USA
Sand / Silt
76%
H & L Engineering, USA
Texas Clay
73%
NOVA Geotechnical, USA
Clayey Sand
187%
Kasetsart Univ, Thailand
Clay
180%
Venezuela – Fuerte Tiuna
Sandy Loam
181%
“We have tested a number of enzyme products in the past and this is
the first enzyme product tested that has substantially
increased soil strength” - US Army Corps of Engineers
…and a number of successful Field Tests
Location
Use
Years w/o
Repair
Morocco – multiple
Mining Roads
7
China – multiple
Local Village Access
4
Kazakhstan – multiple
Demonstration and Testing
4
Thailand – multiple
Demonstration and Testing
2
Romania
Demonstration and Testing
4
Turkey – multiple
Demonstration and Testing
2
Malaysia
Demonstration and Testing
4
Venezuela – multiple
Demonstration, Access
<1
®
Evozyme Outperforms the competitors in MinnDOT Testing
Evozyme® vs. competitors
A third party independent laboratory in the United States conducted a test comparing Evozyme and the
competitors . The testing was completed by the University of Minnesota’s Graduate Civil Engineering
Department and the Department of Transportation for the State of Minnesota. The test used two
different types of soils.
®
Evozyme worked on both soils tested
the competitors e worked on only one soil
type
Researchers questioned whether or not the
competitors even contained enzymes
that work
Evozyme proved 38-115% stronger than the competitors
Competitors – Acrylic Polymer Products
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There are several producers (well over 100 internationally) of acrylic and/or inorganic polymer products
for soil stabilization
•
Many of these producers have healthy distribution channels with industrial, construction and military
customers
•
Most of these products advertise as being “eco-friendly” because they are bio-degradable and not
terribly carbon intensive
•
The biggest issue with polymers is that they are only useful in the short-term, anywhere from a few
weeks to 12, even 18, months
– This makes polymers unfit for long-term road construction, but very fit for short-term stabilization
products
•
We estimate the annual market size for polymer based soil stabilization to be approximately $50 million
(VERIFY) in the US and approximately $200 million internationally
•
On price and performance, Evozyme costs about the same as most polymer products but greatly outlasts
them over time. In addition, polymers ship fully diluted, incurring high shipping costs and making them
cumbersome to use
•
Conclusion: We believe we can take at least 10 – 20% of US market share and 5% international market
share from polymers over the next 5 years
Key Partnerships and Progress – USA
Key Partnerships and Progress –
International
Former USSR 
South America 
Africa 
China 
Southeast Asia 