maire tecnimont group green chemistry november 2019 · automotive lenses, touchscreens, cables...
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MAIRE TECNIMONT GROUP
GREEN CHEMISTRY
November 2019
DISCLAIMER
This document has been prepared by Maire Tecnimont S.p.A. (the “Company”) solely for use in the
presentation of the Maire Tecnimont Group (the “Group”).
This document does not constitute or form part of any offer or invitation to sell, or any solicitation to
purchase any security issued by the Company.
The information contained and the opinions expressed in this document have not been independently
verified. In particular, this document may contain forward-looking statements that are based on
current estimates and assumptions made by the management of the Company to the best of its
knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-
occurrence or occurrence of which could cause the actual results – including the financial condition
and profitability of the Group – to differ materially from or be more negative than those expressed or
implied by such forward-looking statements. This also applies to the forward-looking estimates and
forecasts derived from third-party studies. Consequently, neither the Company nor its management
can give any assurance regarding the future accuracy of the estimates of future performance set forth
in this document or the actual occurrence of the predicted developments.
The data and information contained in this document are subject to variations and integrations.
Although the Company reserves the right to make such variations and integrations when it deems
necessary or appropriate, the Company assumes no affirmative disclosure obligation to make such
variations and integrations.
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SUMMARY
1. NextChem at a Glance
2. Plastic Recycling
MAIRE TECNIMONT GROUP
• Leading worldwide technology and engineering
contractor focusing on oil & gas onshore
downstream:
– Petrochemicals– Oil & Gas Refining
– Fertilizers
• Growing Presence in Green Chemistry and
Renewable Energy
• Flexible Business Model spanning the entire
value chain:
– From Technology-to Execution–Driven
Business
• Strong Technology DNA
- Portfolio of over 1,200 Patents
• Two Business Units:
– Hydrocarbons
– Green Energy
Key Indicators (FY2018)
Revenues by Business Unit (9M 2019)
96%
4%
Hydrocarbons Green Energy
€3.6 bn Revenues
€205.7 m EBITDA
€93.8 m* Net Cash
€6.1 bn Backlog (30/9/2019)
~9,500 Employees and E&I professionals (30/9/2019)
€0.8 bn Current Market Cap
* Excluding €36.3 million in Non-Recourse Project Financing for the Alba Bra Hospital project, and including €16.2 million to be recovered in India
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GROUP STRUCTURE – MAIN COMPANIES
Large-scale
contracting in:• Oil & Gas
Refining
• Petchem
• Fertilizers
• Refining
• Hydrogen and
Syngas
Production
• Sulphur
Recovery
• Fertilizers
Technology
• Urea Licensing
• Renewable
Energy
Hydrocarbons Green Energy
• Project
Development
NeosiaRenewablesNextChem
MetDevelopmentStamicarbon
KTTecnimont
• Green
Chemistry
Kinetics Technology
Business
Unit
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NEXTCHEM PROFILE
8 60 23MLNCONTROLLED COMPANIES
EMPLOYEES NET WORTH
NextChem is an Industrial Player which is Profitable from the Beginning
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GREEN ENERGY BUSINESS UNIT - ADDRESSABLE MARKET
Significant Growth Potential over the next few Years
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February
2019
Acquisition of MyReplastIndustries by NextChem (Advanced Plastic Recycling Plant located in Bedizzole)
June
2019
Partnership Agreement signed by NextChem and ENI to develop and implement a conversion technology to produce hydrogen and methanol from solid urban waste and non-recyclable plastic
GREEN ENERGY BUSINESS UNIT: MILESTONES ACHIEVED
September 2019
Bedizzole
Plant
Productivity
continues to
grow
November 2018
Innovation Day
and
communication
to the Market
of the new
Green Energy
Business Unit
December 2018
Acquisition of
50.67% of
NextChem by
Maire
Tecnimont SpA
from KT SpA
April 2019
Transfer of the
green
activities from
the Group to
NextChem
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AREAS OF NEXTCHEM ACTIVITY
Circular Economy is a Key Pillar of our Green Chemistry Strategy
MARKET FRAMEWORK
Green Green
(use of biological
components as
feedstock)
Circular Economy(re-use of wastes)
Greening the Brown(industrial processes pollution reduction)
KEY GREEN INDUSTRIES
Renewable Energies
RES** to Chemicals
Green Green(use of biological
components as feedstock)
Bio-fuels
Bio-polymers
Fertilizers Bio-Coating
Bio-chemicals
Circular Economy(re-use of wastes)
MSW* to Chemicals
Plastics Recycling
Greening the Brown
(industrial processes
pollution reduction)
Energy efficiency
Carbon footprint reduction
Create
Improve
Reduce
Flaring Reduction
MSW* to Fuels
RES** to Fuels
* MWS : Municipal Solid Waste
** RES : Renewable Energy Source
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MA
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–F
Y 2
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8 F
INA
NC
IAL R
ES
ULT
S
OPERATORProduction plant player
JOINT DEVELOPEREquity and tech partnership
with industrial player
EPCEPC service provider
LICENSORIP and Feed sale
to industrial players
SMALL SIGNIFICANTMEDIUM
INVESTMENT SCALE
BUSINESS MODEL NOT VIABLE DUE TO SIGNIFCANT INVESTMENT SCALE
JOINT DEVELOPER OPTION MAY NOT BE FEASABLE DUE TO INVESTMENT
SCALE
EPC AND LICENSOR BUSINESS MODELS TO BE PURSUED ONLY IF
JOINT DEVELOPER OPTION IS POSSIBLE
GREEN BUSINESS MODEL
Business Model Depending On The Business Scale
GREEN ENERGY BUSINESS MODEL
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MAIN CURRENT INITIATIVES
Use of low-cost waste toproduce of Fuels and
Chemicals
High efficiency technology for
the conversion of Electricity into Hydrogen (first step)
and/or direct production of
Fuels (second step)
Upcycling of Plastic waste to
High Value Polymers
Waste to Fuels and Chemicals
Power/Hydrogen to
Chemicals
PlasticRecycling
Bio-Fuels
Production of high value Bio-Polymers from
Renewable Resources
Production of second generation Bio-Fuels and
Renewable fuels from
biogenic feed-stocks
Bio-Polymers
Cir
cula
r Econom
yG
reen G
reen
Gre
enin
g
the B
row
n2021-20232019-2020
Development Timeline
1st Generation
2nd Generation
> 2023
To 3rd Generation
Mechanical Recycling
Integrated Recycling (Mechanical
and Chemical)
Renewable Energy to Chemical &
Fuels
High Value Applications
Fuels
Chemicals
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FINANCIAL IMPLICATIONS
• Capex 2019-2023 to develop/implement initiatives: €40-50m (excluding what has already been incurred for Bedizzole Plant)
� Higher proportion in the first three years� Capex payback in three years
• Solid Capital Structure from the start
� Start-up Capex already incurred� Future Capex to be mainly financed from non-recourse debt and/or Equity
syndication and grants
• €50 million of EBITDA in 2023
� Business is profitable already� Non-linear progression over the period
Maximizing Returns While Minimizing CapexMA
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SUMMARY
1. NextChem at a Glance
2. Plastic Recycling
GLOBAL PLASTIC HISTORICAL PRODUCTION
Source: Plastic; the facts 2018 https://www.plasticseurope.org
0
50
100
150
200
250
300
350
1940 1950 1960 1970 1980 1990 2000 2010 2016 2017
348 MMtons of Plastics Produced in the World in 2017
MMtons
• Global plastic production has increased more than 20 times in the last 50 years
• More than 300 MMTons/y of plastic produced
• Plastic CAGR 5% (about additional 20MMTons/y)
• Urgent need to tackle the environmental problems
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GLOBAL PLASTIC PRODUCTION BY GEOGRAPHY
Source: Plastic; the facts 2018 https://www.plasticseurope.org
~300 MMT/y
• Europe imports significantly more of its virgin plastic production • Recycling is the way to use waste in order to reduce resource dependency
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PLASTIC CONSUMPTION IN EUROPE
Main EU Consumers (%, 2016)
5%
5%
6%
8%
8%
10%
14%
25%
0% 5% 10% 15% 20% 25% 30%
Netherlands
Belgium & Lux.
Poland
United Kingdom
Spain
France
Italy
Germany
The Six Largest European Countries and Benelux covered almost 80% of the European Demand in 2016
Potential Market is around us
Source: Plastic; the facts 2018 https://www.plasticseurope.org
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CONSUMPTION BY PLASTIC FAMILY IN EUROPE
6.7% 7.4% 7.5%
10.0%
12.3%
17.5%19.3% 19.3%
PS,PS-E PET PUR PVC PE-HM, PE-MD PE-LD,PE-LLD PP Others
Eyeglass
es,
Frames,
Cups
Drink/
Cleaner
Bottles
Building
Insulation,
Pillows,
Mattresses
Windows
Frames,
Pipes,
Cables
Toys, Milk &
Shampoo
Bottles
Reusabl
e Bags,
Agricultural &
Food
Films
Food
Packaging,
Microwaves
Containers,
Automotive
Lenses,
Touchscreens,
Cables
Coating,
Aerospace
MyReplast decided to concentrate on the
most spread out families of Plastic, which
represent about 50% of the total Plastic
Consumption
Source: Plastic; the facts 2018 https://www.plasticseurope.org
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EUROPEAN PLASTIC LIFE CYCLE
Only 5% of Virgin Plastic Goes to New Use
60
37
27
84 3
37
27
84 3
0
10
20
30
40
50
60
Total Plastic
Production
Plastic Consumables Available Plastic
Waste
Collected waste Recycled Waste Recycled Polimers to
new use
23
10
19
41
Exported Plastic and Durable Application
Environmental Leakage
No Selection:
Landfill/Inceneration
Exported
2016 data
MMtons
=5%
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EU 2025-2030 TARGETS
To reach EU 2025 targets of 11.9 million tons of recycled plastic, the market needs 175 additional recycling plants with a capacity of 50 thousands tons each
• EU recycling targets by 2025
� 65% of collected municipal waste
� 75% of collected packaging waste
• Binding landfill target to reduce to maximum
of 10% of municipal waste by 2025
• Economic incentives for producers to put
greener products on the market and support
recovery and recycling schemes (e.g. for
packaging, batteries, electric and electronic
equipment, vehicles)
Polyolefins and PET European
Recycling Situation
2016% on Tot.
2025 EU
Targets
% on Tot.
Total
Production60.0 MMtons 68.6 MMtons
Collected
Waste8.4 MMtons 14.0% 16.0 MMtons 23.4%
Recycled Waste 3.1 MMtons 5.2% 11.9 MMtons 17.3%
Required Plants ~ 175
• The European Commission has included a national contribution to be paid for Plastic Waste in the
last Financing EU Budget (May 2018). It will be based on the amount of non-recycled plastic
packaging waste of each Member State whose amount could reach €80 cents per kilogram of non-
recycled plastic waste
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BEDIZZOLE PLANT: ADVANCED PLASTIC WASTE RECYCLING
• First step in the Circular Economy
• Based on an economically sustainable
business model
• Flexibility: the plant can treat various
types of incoming plastic waste
• Technology: advanced sorting +
finishing/compounding
• Size: one of the largest plants in Europe
• Location: Bedizzole (Brescia), Italy
Maire Tecnimont as an Accelerator in the Circular EconomyMA
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BEDIZZOLE PLANT - KEY TECHNICAL INFORMATION
Plant Production
Recycling Rate
Feedstock
Output
Range of 40/50 ktons/year
~ 95%
Any type of Polymers (according to clients’ needs)
Upcycled Polymers
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BEDIZZOLE PLANT: HOW THE PLASTIC WASTE RECYCLING WORKS
INTEGRATION
Advanced Sorting Technologies
Advanced Sorting, Grinding, Washing and
Color separation
Finishing/Compounding
Higher Quality Plastic Granules thanks to Regradation,
Additivation and Compounding Technologies
Polymer Granules
Technology Recipes
Network
Access to Primary Polymers Market
The most consumed
type of plastic: mainly PP, PE, LDPE
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Maire Tecnimont Group’s Headquarters
Via Gaetano De Castillia, 6A
20124 Milan
www.mairetecnimont.com
Investor Relations T +39 02 6313-7823 F +39 02 6313-733702 [email protected]