sunsi dec 2011 power point

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POWERING THE SOLAR INDUSTRY SunSi Energies Inc. OTCQB : SSIE December 2011

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Page 1: Sunsi Dec 2011 Power Point

POWERING THE SOLAR INDUSTRYSunSi Energies Inc.OTCQB : SSIEDecember 2011

Page 2: Sunsi Dec 2011 Power Point

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DISCLAIMER AND NON-GAAP FINANCIAL MEASURES

Forward-Looking Statements

Some of the information on this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically, the Company's most recent Form 10-K. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. Recipient agrees not to use the information herein in violation of federal securities laws. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by SunSi.

Non-GAAP Financial Measures  From time to time, SunSi management may publicly disclose certain "non-GAAP financial measures" in the course of its financial presentations, earnings releases, earnings conference calls, and otherwise. For these purposes, the SEC defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and vice versa for measures that include amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Pursuant to the requirements of Regulation G, whenever the Company refers to a non-GAAP financial measure, the Company will also generally present, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references with such comparable GAAP financial measure.

Page 3: Sunsi Dec 2011 Power Point

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SUNSI BUSINESS PROFILE

SunSi Energies Inc., through its operations in mainland China, manufactures

trichlorosilane (TCS), a critical intermediate compound used to produce extremely pure polysilicon, a key element for the manufacture of computer chips and solar photovoltaic (“PV”) cells.

“WITHOUT TCS THERE IS NO SOLAR INDUSTRY”

• Currently TCS is an essential raw material used in the manufacturing of approximately 75% of all solar panels worldwide.

• TCS or (SiHCl3) is a colorless liquid containing silicon, hydrogen, and chlorine. Companies involved in the manufacturing of TCS achieve the highest profit margin on the solar value chain.

Page 4: Sunsi Dec 2011 Power Point

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SUNSI PUBLIC COMPANY PROFILE “SSIE”- OTCQB

• Shares Outstanding October 2011 29,999,628

• Share Price January 1, 2011 $2.89

• Share Price December 05, 2011 $4.05

• Management Share Ownership (a) 36.6%

• Corporate Debt $-0-

• Warrants and options outstanding -0-

• Stockholders’ Equity as of 8/31/2011 $7,658,358

(a) Shares voluntarily locked up until 2013

Page 5: Sunsi Dec 2011 Power Point

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• Acquire and develop a portfolio of high quality and

strategically located TCS producing facilities in China, and in some cases obtain exclusive distribution rights for TCS.

• Attain a critical mass for production of TCS that allows for increasing TCS market share.

• Generate superior profitability and stock appreciation for our shareholders.

SUNSI BUSINESS OBJECTIVES

Page 6: Sunsi Dec 2011 Power Point

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WENDENG HE XIE SILICON CO. (WENDENG)

• On March 18, 2011 SunSi acquired a 60% equity interest in Wendeng He Xie Silicon Co., a TCS facility located in Weihai City, China.

• Wendeng is a state of the art facility with a current annual production capacity of 30,000 metric tons (MT) of TCS.

• All of the current management team members and employees have been retained by SunSi.

• SunSi’s goal is to increase Wendeng’s capacity to a total of 75,000 MT per year by the end of June, 2012.

Page 7: Sunsi Dec 2011 Power Point

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WENDENG HE XIE SILICON CO. (Continued)

Page 8: Sunsi Dec 2011 Power Point

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ZIBO BAOKAI COMMERCE AND TRADE CO. (BAOKAI)

• SunSi Energies completed the acquisition of 90 % of Zibo Baokai Commerce and Trade Co. in December 2010, a company that owns the exclusive worldwide distribution rights of all of the TCS produced by the Zibo Baoyun Chemical Plant (ZBC).

• The ZBC facility is located in Zibo, Shandong and was commissioned in 2003. ZBC has an excellent track record of producing high quality TCS and selling some of their TCS production to billion dollar solar companies.

• ZBC has grown from 67 MT the first year, to a current production capacity of 25,000 MT per year.

• SunSi is already in discussions with major international clients where gross margins on TCS, are higher than TCS sold within China.

Page 9: Sunsi Dec 2011 Power Point

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ZIBO BAOKAI COMMERCE AND TRADE CO.

Page 10: Sunsi Dec 2011 Power Point

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GROWTH TARGETS IN TERMS OF PRODUCTION

SunSi’s target is to reach 140,000 MT of TCS capacity per year, which is estimated to represent approximately 30%+ of the Chinese TCS market, by the end of 2012.

Wendeng45,000 MT

Total140,000 MT

Total Production Expected to Controlled

by SunSi by the end of

2012

New Production

Facility40,000 MT

New Facility Acquired 2012(b)

Additional New Capacity Expected

to be added to Wendeng in 2012(a)

Wendeng30,000 MT

Current Production Capacity at

Wendeng as of 12/2011

Current Production

Capacity at ZBC via Baokai

Distribution Agreement

Baokai25,000 MT

(a) Scheduled for completion by June 30, 2012 if funding for CAPEX can be obtained.(b) Assumes consummation of acquisition currently in advanced discussion stages

Page 11: Sunsi Dec 2011 Power Point

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SUNSI CORPORATE STRUCTURE

SunSi EnergiesPublic Co.

“SSIE”

SunSi EnergiesHong Kong Co.

100 %

Wendeng He Xie Silicon Co. (China JV)

2011

Zibo Baokai Trade Co. Ltd (China)

2010

60 % 90 %

TCS Distribution Co. SegmentProduction Facility Segment

90 %

New Production Facility(China)

2012(PROJECTED)

Production Facility if Acquisition Successfully

Consummated

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Mercom Capital Group, LLC, a global clean energy communications and consulting firm stated on May 2, 2011:

“We estimate China represented just shy of 3% of global demand in 2010 but more than 65% (and heading higher) of global solar production capacity. This makes China the world’s most important solar manufacturing country and we expect its importance to continue to grow….”

• China is the world’s low cost producer of TCS.

• Strategically located facilities with a track record of success.

• Excellent management teams with many years of running TCS facilities.

•Existing base of billion dollar and other Tier I and Tier II polysilicon companies purchasing TCS from us.

•Facilities have been built with the proper infrastructure to rapidly expand capacity with efficient CAPEX.

WHY PRODUCE TCS IN CHINA?

Page 13: Sunsi Dec 2011 Power Point

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SUNSI EXECUTIVE MANAGEMENT TEAM - OVER 150 YEARS OF RELEVANT BUSINESS EXPERIENCE

Richard St-Julien, Chairman of the BOD & Chairman of Chinese Operations Practicing attorney in the areas of Commercial and International Law.  Has been involved in numerous business ventures as an entrepreneur in Canada, U.S., China as well as in other countries.

David Natan, Chief Executive Officer, Director Has served as CFO for five U.S. public companies and was appointed CEO of SunSi in December 2010. Extensive knowledge of public companies and direct experience with AMEX and NASDAQ.

Jason Williams, Chief Financial OfficerPublic company experience at the CFO level. Expertise in public company reporting, operations and SEC compliance.

Yifeng Song, VP Global DevelopmentBig 4 international consulting experience. Expertise in energy-efficient and green technologies - multilingual including Mandarin.

Page 14: Sunsi Dec 2011 Power Point

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FUTURE OUTLOOK FOR TCS & SOLAR DEMAND

•Recently shipped first TCS order outside of China to Nitol Solar one of the largest polysilicon makers in Russia. Receiving numerous inquiries from many entities inquiring about placing future TCS orders.

•There are a number of world-class polysilicon makers who make both TCS and polysilicon in the same facility. But these entities continue to outsource a portion of their TCS production. They do this because they cannot compete with the low cost of Chinese production.

•The Chinese government announced in 2010 that they intend to spend $454 billion over the next ten years on alternative energy, and to effect a Fivefold increase in Chinese solar production by 2020.

This = five times the required TCS usage.

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COMPETITIVE ANALYSIS

• China is the low cost producer of TCS due to the abundance of raw materials, existing infrastructure and lower labor costs.

• Barriers to entry are very high: (1) Expertise in running a TCS facility is difficult to obtain. (2) Licensing and permitting processes required to start a new facility in

any location are onerous and time consuming. (3) Although environmental impact guidelines have become more stringent

in China, it is still much easier to expand production in China in terms of timing and cost than to “greenfield” a new TCS plant in nearly anyplace else in the world.

• New facilities cannot be brought on line as quickly as existing facilities that already possess the infrastructure for rapid future expansion.

• Polysilicon makers continue to outsource TCS production, although higher efficiency is obtained by building combined facilities.

• Polysilicon makers and other industrial purchasers of TCS are reluctant to commit production to new and unproven facilities.

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RECENT EVENTS AND PROGRESS

2011 and Recent Highlights

•Closed its first acquisition of 90% of a TCS distribution company, Baokai, in December 2010.•Closed its second transaction with the acquisition of a 60% equity interest in a TCS manufacturing company, Wendeng, in March, 2011.•In 3Q11, emerged from development stage status to an operating entity.•In 4Q11, began generating significant revenues and recorded the first profitable quarter in Company history.•In June 2011 the Company fulfilled its payment obligation to Wendeng when $2.7 million in redeemable SunSi common stock was converted to equity.•Initiated the up-listing process to NASDAQ.•Raised total shareholder count from 45 shareholders of record in 2010, to 430 shareholders of record as of August 31, 2011.•Shipped first TCS order outside of China to Nitol Solar(Russia).•Completed Phase I of Wendeng's capacity expansion which increased production capacity from 20,000 to 30,000 metric tons.

Page 17: Sunsi Dec 2011 Power Point

SunSi Energies45 Main Street, Suite 309Brooklyn, New York, 11201Tel: [email protected]