stt enviro corp corporate presentation

www.sttenvirocorp.comTHE NUTS AND BOLTS OF GREEN

Corporate Presentation

March 2014

sttenvirocorp.com

TSX.V:STT

Corporate PresentationApril 2014

THE NUTS AND BOLTS OF GREEN

http://www.sttenvirocorp.com/


Forward looking Statement

This presentation may contain forward-looking statements thatreflect current views, including the company’sobjectives, projections, outlook, estimates, expectations orpredictions, and contain forward-looking information with respect tofuture events.

STT Enviro Corp. cautions that such information involves risk anduncertainty and that actual results could differ materially from thosecontained in them. In addition, certain material factors andassumptions were applied in drawing the conclusions or making theforecasts or projections contained in them which are subject tochange.

Additional information about the material factors that could causethe results to differ materially, and the material factors orassumptions that were applied, are contained in STT Enviro Corp’spress releases, current financial statements and MD&A for the year-ended 2013 and 2012, all of which are available on SEDAR.



The Company’s three primary areas of business are:

Systems: providing engineering support, project management and installation of bulk

material/chemical handling systems for neutralization of pollutants;

Tanks: Supplying bolted steel tanks and glass fused to steel tanks for liquid storage

projects; and

Solutions: The sale of parts and aftermarket services to our customers to assist them

in maintaining their systems and increasing overall efficiency.

Helping our clients clean up their world

The company assists its clients in subscribing to the highest environmental

standards by offering quality products, reliability and cost effective solutions.



Company Milestones

There was a Problem (2009) High debt, economic downturn

Company was too highly leveraged due to heavy acquisition

program when financial markets corrected

Began sale of non-core businesses to pay down debt after onset of

financial crisis

The Solution (2011)Corporate restructuring, new

management

New management

Refinancing through debt to equity conversion and $2.5 convertible

debenture

Doubling of 2010 revenue to $26.4M

Ramped up staff by 70%

The Result (2012-2013)Strong financial position, higher

margins, new growth opportunities

Created the Solutions Group, a high margin new business

Substantially improved profitability; EBITDA over $2 M

Closed financing with BDC & set up banking arrangement with RBC

Changed corporate name to STT Enviro Corp

Expanded tanks business in oil sands

Closed additional financing with BDC to refinance convertible debenture

obligation maturing Q1 2014



The Result: Strong revenue growth and

increased margins due to product mix

change Capital StructureTicker Symbol TSX-V: STT Shares outstanding * 36,190,533 Market Capitalization ~$5.4M 52 Week Hi/Lo 0.15/0.04

Revenue Gross Margins

CN

D$

00

0s

EBITDA Net Income (excluding special recovery or write offs)

CN

D$

00

0s

CN

D$

00

0s

-$2.3 M

19%22%

24%26%

0%

5%

10%

15%

20%

25%

30%

FY 2010 FY 2011 FY 2012 FY 2013

-$1.5M

$2.1M

$2.5M $2.7M

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

3000

FY 2010 FY 2011 FY 2012 FY 2013

$13.2M

$26.5M$29.2 $28.4M

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY 2010 FY 2011 FY 2012 FY 2013

$853

$953$1.0M

0

200

400

600

800

1000

1200

FY 2010 FY 2011 FY 2012 FY 2013

*Total shares outstanding following the maturity of the final tranche of the convertible debenture on April 25th



Learning to do well in tough markets…

2010 2011 2012 2013 2014F

STT

Semco

2010 2011 2012 2013 2014F

2010 2011 2012 2013 2014F

Systems

TanksSolutions

The Company built new revenue streams to reduce the impact of the slowdown in

resource development. When commodities recover it is positioned for significant growth.



The Result: big progress in debt reduction

$5.9M

$6.0M $6.3M

$4.4M

$3.4M

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Mar-10 Mar-11 Mar-12 Mar-13 Mar - 14F

Long-term portion of term debt

Current portion of term debt

CN

D$

00

0s

By April

2014 the

company’

s total

debt has

been

reduced

to $2.8 M



BUT: A 3 year lid on the share price due

to Convertible Debt Conversion Price

The refinancing deal which was closed in April 2011 put a lid

on the stock price despite improved corporate performance

and better balance sheet.

Resolution of share float of

36 M shares outstanding

5x EBITDA Share Price Multiple

-0.35

-0.25

-0.15

-0.05

0.05

0.15

0.25

0.35

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Share Price

54 M Shares Outstanding



Potential Share Price Valuation

As of April 1st, 2014, STT share float of 36,000,000 is now known and a

proper share price valuation can take place: the market can decide.

36 million shares 36 million shares

Before April 2014

The dillution possible if

everyone had exercised

their option STT Enviro Corp STT Enviro Corp

Multiple 2.5 4 5 6

2013 2013 2013 2013

Revenue $28,500,000 $28,500,000 $28,500,000 $28,500,000

EBITDA $2,650,000 $2,650,000 $2,650,000 $2,650,000

Ent Value $6,625,000 $10,600,000 $13,250,000 $15,900,000

Debt $2,800,000 $2,800,000 $2,800,000 $2,800,000

Net Value $3,825,000 $7,800,000 $10,450,000 $13,100,000

Shares 26,000,000 52,000,000 36,000,000 36,000,000

$/Share $0.15 $0.15 $0.29 $0.36



Valuation Comps

Environmental Service Companies with higher than 15% EBITDA margin

EBITDA Margin EDITDA Multiple

Waste Management 24.40% 8.8

Waste Connection 33.40% 11.2

Covanta 25.40% 10.7

Environmental Service Companies with lower than 15% EBITDA margin

Veolia 9.50% 6.1

Renewable Energy Group 12.60% 2

URS Corp 7.40% 6.2

As of Jan 24, 2014

Valuation parameters we found on major public companies were as follows:



ISO 9001:2008 Certified:

Quality Products, Quality Clients



Systems: Specialized in Water Treatment in

Resource Recovery & Air Emissions Clean-

up

Oil Sands Tailing Ponds

Flue Gas Desulfurization

Systems to clean up water in existing tailings

ponds

SO2 elimination from stack emissions in coal fired

flue gas

SAGD Oil Recovery

Mining Tailings

Fundamental to any development project

Lime systems for pH control

Acid mine drainage control

Steam Assisted Gravity Drainage (SAGD) is an

oil recovery technology requiring a steady source

of clean water. STT provides technology for

closed loop water system

System Markets:



Systems

Our Competitive Advantage

ZMI Portec Slaker: Acquired ZMI

Technology, which is largely considered the

industry leader in lime slaking - small

footprint means it can sit inside the silo

Metso Vertimill: Partnership agreement with

Metso – record of reliability in mining

Over 1,000 systems installed

High Quality: Products are built with quality

materials and components – ISO 9001

certified

Optimization expertise

Broad capability: from “Engineer Procure

Contract” status to just what’s required for the

job

Cost effective solutions: modular systems

from historical knowledge and data



Tanks: Economically competitive &

environmentally responsible

Up to 30% savings with our bolted steel tanks compared to field-welded tanks

BOLTED TANKS offer factory-manufactured sheets - no harsh fumes or chemicals are

released into the environment during the coating and construction process

Over 1,000 tanks and silos installed to date

No heavy machinery or equipment is required during construction

Through a distribution agreement for western Canada with CST

Industries, our Tanks group sells CST’s bolted tanks and provides related

engineering support, drawings, capacity charts, specifications, life-cycle

analysis and construction services for liquid storage projects.

We have identified an application which would allow us to enter a new market

which holds the potential to triple or quadruple tanks sales over the next three

years

Currently reviewing the technical obstacles surrounding this application and

feasibility of it coming to fruition

Our Competitive Advantage



Solutions – the input data of the company

The Solutions group focuses on aftermarket and lifecycle support for our

customers

56% of maintenance outages in plants are unplanned, our services addresses this

costly challenge for operators in an economical way

Strong growth in this division has also resulted in R & D opportunities

Applied Care Program

The Applied Care program helps to prolong

system life and increase its overall efficiency. The

program offers one year and two year contracts.

Mechanical Audit & System Review

A Study to review mechanical issues for process

inefficiency. We have found significant savings for

clients through this review.

Parts & Service

STT Enviro Corp Solutions is a leader in parts and

service supply for dry bulk storage, lime slaker

products and pneumatic transfer systems and has

seen a dramatic increase in Parts Sales since the

launch of our Solutions business.

System Retrofits & Upgrades

Improving client relations by developing a retrofit

instead of scrapping the system in order to

increase capacity or deal with fatigued equipment.

STT Solutions Product Offerings:



Research and Development: Staying

ahead of the competition

The research and development work we do is important for maintaining and strengthening

our role as an industry leader.

We are continually challenging ourselves to make product improvements and find new

ways to positively impact our clients by further reducing their environmental impact.

Our R&D programs are focused on finding cost savings for our clients while reducing the

carbon footprint

Project: Mapping of lime slaking

reactivity both in field and in the lab.

Potential: Product design

differentiation which could lead to

significant reduction in chemical use

for clients.

Project: Development of new Vertimill

feed and classification designs for

optimizing lime use.

Potential: Major retrofit opportunity

as well as new product differentiation.

Some of our R&D Projects:



The Four Pillars of our Success

Proven success of new management

2013 revenue of $28.5 M, an increase of 115% since 2010

Increased gross margins to 27%, up 42% in four years

Expected to reduce debt by over 60% by mid-2014

R&D programs to develop our proprietary technology

On-going review of potential acquisitions and strategic partnerships that offer accretive growth

An ethical investment: helping our clients reduce their environmental footprint and improve their health and safety standards



Contact Us

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

Tel: +1 604-271-6441

www.STTEnviroCorp.com


mailto:[email protected]

mailto:[email protected]



Management

DAVID DEACONChief Executive Officer

Mr. Deacon became President and Chief Executive Officer of STT Enviro Corp in March 2011. He has broad experience in entrepreneurial management, marketing, sales and finance. From 2007 to February 2011, he was founder, Chairman and CEO of Group DKG Corp., a private company involved in the production of industrial fibreglass. Prior to that, David had a career which included running Porsche Canada, taking the Canadian market from the 13th largest in the world to sixth largest and along the way creating the Rothmans Porsche racing series. His first nine years in business were spent in the brokerage industry: four as an institutional analyst and five as vice-president of retail sales.

JOHN WILBY, CA Chief Financial Officer

John Wilby joined the Company in July 2007. He has over 20 years’ of senior financial experience, including ten years as CFO of SorocTechnology Inc. and five years with Moneysworth & Best Shoe Repair Inc. in financial and operational roles. He obtained his designation as a Chartered Accountant in 1988 and holds a Bachelor of Commerce degree from Queen’s University.

CALIN SARBAN, M. Eng P.Eng VP of Operations

H. FRASER BRINGELAND, B.CommVP of Business Development

ALI ABBAS, M. Eng P.Eng Director of Aftermarket Sales and Service

Calin Sarban joined the Company in January 2013 as Director of Operations. He is responsible for the Company’s project execution team, and oversees the project management, engineering and design, application, quality assurance , procurement and construction functions in the Company. A Mechanical Engineer and Project Manager with a Masters’ degree in Mechanical Engineering, Calin has 22 years’ experience in strategy development, project management, manufacturing, technical sales, planning and purchasing.

Fraser Bringeland joined the Company in July, 2007 as Sales Representative. Fraser has over 25 years’ experience in sales and marketing roles, including 11 years spent with Metso Minerals, a large mining industry supplier. He left Metso in 2007 to join STT and lead its efforts in selling complex systems to mining industry customers. Fraser holds a Bachelor of Commerce degree from the University of British Columbia.

Ali Abbas joined the Company in November, 2008 as Project Engineer, and led the enhancement of the Company’s then-recently acquired line of ZMI Portec lime slaking products. A seasoned water/wastewater engineer, Ali now leads the Company’s Solutions divisions, which provides process expertise and after-market parts and services to industrial customers across North America. Prior to joining the Company, Ali spent 13 years working in technical and sales roles with leading suppliers of water treatment technology in Canada and the United States.



Board of Directors

DAVID DEACONChief Executive Officer Mr. Deacon became President and Chief Executive Officer of STT Enviro Corp in March 2011. He has broad experience in entrepreneurial management, marketing, sales and finance. From 2007 to February 2011, he was founder, Chairman and CEO of Group DKG Corp., a private company involved in the production of industrial fibreglass. Prior to that, David had a career which included running Porsche Canada, taking the Canadian market from the 13th largest in the world to sixth largest and along the way creating the Rothmans Porsche racing series. His first nine years in business were spent in the brokerage industry: four as an institutional analyst and five as vice-president of retail sales.

PHILIP JAMIESONDirector

DAVID W. SNOWDEN Independent Director

PETER F. CLARKIndependent Director

Originally from the United Kingdom, Mr. Jamieson qualified as an Accountant in November 1982 and is a member of the U.K. Association of International Accountants. He had a successful career in financial management in the U.K. until 1989. His experience included Group Accountant in the manufacturing industry, Financial Director in the retail motor trade and International Accountant for Granada Group. In 1989, Philip moved to Canada to become Chief Financial Officer for Granada Canada Ltd. Following a strategic decision by the U.K. parent of Granada Group to sell Granada Canada Ltd., Philip headed up the team that successfully raised $77 million to acquire it. Philip was appointed President, CEO and CFO of Granada Canada and successfully ran it from 1991 to 1997. In 2006, he joined STT and served as Chairman and CEO until March 2011.

Mr. Snowden joined the Company’s board of directors on January 15, 2010. He is a Chartered Accountant and has managed his own practice since 1978, providing financial and tax planning services to individuals and corporations. For over twenty years, he lectured at the University of Toronto in the Commerce and Finance program. He has also served as a director of an international packaging company for over 25 years, and continues to assist that company with general business and international tax planning advice. Mr. Snowden holds a Bachelor of Commerce degree from the University of Toronto.

Mr. Clark joined the Company’s board of directors on August 15, 2012. He was President and CEO of Clark Shoes from 1969 to 1988 and President and CEO of CPI Plastics Group from 1989 to 2009. Peter has served on numerous public and private boards, including Just Energy, and also served for 15 years as Chairman of the Metropolitan Toronto Licensing Commission.

ROBERT J. TWEEDYChairman and Independent Director

Mr. Tweedy is Chairman of STT Enviro Corp and a director of Aurcana Corporation (TSX-V) and Dundee Real Estate Investment Trust (TSX). Robert is also an advisor to MaRS, an organization which supports the creation and growth of Canadian companies with innovative technology. Robert started his career as a consultant with McKinsey & Co. Inc. in Toronto, Cleveland and Paris, France and, while in Europe, he worked as an Executive of Holderbank Financier Ltd., Zurich, Switzerland. He returned to Canada to become President of Dufferin Concrete Products Group, Toronto. From 1977 to 1980, he was President and Regional Coordinator, Bata Shoe Company From 1980 to 1989, he was President and CEO of PCL Industries Ltd., Toronto and then, was Chairman and CEO of Sklar Peppler Furniture Corporation.


stt enviro corp corporate presentation

Investor Relations

bolts of greenforward

current financial statements

bolts of green2the companys

bolts of greenthe result

high margin new business

high debt

financial markets

forwardlooking information