Corporate Presentation February 2018

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1 Corporate Presentation February 2018

2 Five Critical Problems Threaten Our World THE BIGGEST PROBLEMS WORLD IS FACING TODAY WATER SHORTAGE FOOD SHORTAGE WASTE CONCERN CLIMATE CHANGE ENERGY ISSUE

3 Water Shortage: Sustainability of Water Resources ü Up until the year 2023, 17% more water will be needed in order for developing countries to cultivate food products. ü From the present day forward, it is estimated that the total increase in water consumption will be 40%. ü It is predicted that by 2025, more than 3 billion people will encounter water shortages. ü The reason for this situation is not the lack of water resources in the world but the poor administration of the available resources. ü As a result of these developments, a comprehensive policy has been put forward to protect European waters according to a common standard. ü The "Water Framework Directive (SEA)" also includes the previously issued Nitrate Directive (1991). ü The accumulation of nitrogen and phosphorus compounds in underground water is a direct result of the use of excessive chemical fertilizer. This has a direct negative impact on nature and all living creatures. SOURCE:

4 Water Shortage: Sustainability of Water Resources European Nitrate Directive The first step towards the Nitrate Directive in Turkey

5 Water Shortage: Sustainability of Water Resources Groundwater Average Nitrate Concentrations (2007) The dark areas indinitrate cate increased contamination.

6 Global Problems Water Shortage: Sustainability of Water Resources ü Plant nutrients, which are unconsciously fed to the soil through chemical fertilization, cannot bind to insufficient organic matter particles in soil thus rendering drinking water non consumable (nitrogen poisoning being one dangerous side effect) as they mix with underground and surface water. (Low ph) ü The basis of unconscious chemical fertilization is the repeated use of excess chemical fertilizers penetrating the holding capacity of the soil. Chemical fertilizers also pollute our water resources. ü Organomineral fertilizers, produced by Hexagon Solid Waste, provide long-term storage of plants nutrients through its organic matter content, thus preventing hazardous substances entering groundwater. A photograph by Peter Essick, published in National Geographic and used in an article on the reduction of chemicals in agriculture, at Lake Erie, USA in In the photo, it is seen that the algae bloom (eutrophication) resulting as a result of the flow of fertilizer poisoning the waters and consuming organic matters rapidly. SOURCE:

7 Food Shortage: Meeting Sufficient Food need / Decrease of Agricultural Areas ü Food and agricultural production must increase by 60% in order to feed a global population predicted to exceed 9 billion by ü However, chemical fertilization, one of the main producers in this increase, is gradually reducing the crop yield of agricultural land. ü It is possible to see signs of this here, at home, in Turkey; The Turkish Union of Chambers for Agriculture (TZOB) points out, in a statement, that agricultural land, which was 27 million hectares in 1995, has fallen to 24 million hectares in 2015, as a result of being used for housing and also due to the loss of quality in the soil, thus reducing its crop yield. ü Hexagon Solid Waste prevents this loss of quality in the soil, while improving the efficiency and quality of the land. Thus, it will resolve the hunger problem by improving crop yield by utilizing organomineral fertilizers. This photo taken by War Photographer Kevin Carter in Sudan brought the 1994 Pulitzer and Ilford News Awards to Carter, but Carter committed suicide three months later due to he did not help the little girl in the photo.

8 Food Shortage: Meeting Sufficient Food need / Decrease of Agricultural Areas While the Turkey's population increased by 40% during , the agricultural areas decreased by 14% and decreased from 27 million hectares down to 24 million hectares. * *Agricultural lands in Turkey are declining

9 Food Shortage: Meeting Sufficient Food need / Decrease of Agricultural Areas

10 Global Problems Food Shortage: Meeting Sufficient Food need / Decrease of Agricultural Areas

11 Waste Concern: Returning Wastes into Economy ü According to United Nations sources; In 2010, 1.3 billion tons of waste was produced annually in the world. It is foreseen that this figure will be 2.2 billion tons in That means 5 trucks of waste will be generated in every second. ü According to TSI data, Turkey produces 25 millions tons of waste, around 2% of this total and it will continue to do so. This means that 1 truck of waste is generated every 10 seconds. ü The disposal of so much waste in regular storage causes resource waste and environmental pollution.

12 Waste Concern: Returning Wastes into Economy ü Hexagon Solid Waste recycles 75% of the waste entering its facilities for harmonization, with the Acquis communautaire performing economical recycling, renewable energy, compost and organomineral fertilizer. ü Our goal is to reach an annual waste treatment capacity of 400 thousand tons of Hexagon Solid Waste.

13 Waste Concern: Returning Wastes into Economy ü By providing the heating and electricity needs of over 250,000 homes through its use of waste as fuel and set to import more than 80 thousand tons of garbage per year from neighboring country Norway in order to reach more residences, Sweden has demonstrated the importance of recycling to the world. ü According to data from the Swedish Central Heating Agency, in 2015 the amount of garbage imported from outside of the country reached 2 million tons.

14 Energy Issue Energy Generation From Renewable Sources ü In our world, the energy requirement increases by about 4-5% each year. ü On the other hand, the fossil fuel reserves that meet this demand are decreasing more rapidly. ü Even the most optimistic estimates have predicted that, to a large extent, oil reserves will be exhausted between 2030 and 2050 at the latest and will therefore be unable to meet global demand. The situation, for both coal and natural gas, is similar. ü The continued use of fossil fuels has impacted the worldwide average temperatures as they reach the highest levels of the last millennium. This situation has resulted in an increase in natural disasters such as floods and storms, which have caused massive air pollution as well as millions of dollars in damage. ü The most important characteristic of renewable energy sources is that they decrease carbon dioxide emissions and help protect the environment; they contribute towards a reduction in external energy dependence while increasing employment opportunities in domestic resources and to gain a strong, widespread public support. SOURCE:

15 Energy Issue Energy Generation From Renewable Sources ü The growth rate in electricity demand of our country is 5.5% of the annual average over the last 14 years. ü By the end of 2016, 44% of our country's installed power was renewable energy (including renewable + waste + wastewater + pyrolytic oil) with 56% from other sources. ü In recent years, investments in renewable energy source power plants have gained momentum mainly in hydraulics and wind. ü Reducing dependence on other countries in terms of energy technologies and ensuring the security of supply: According to policy objectives: it is foreseen that at least 30 percent of the electricity consumed in 2023 will be produced from renewable sources. ü With its business model, Hexagon Solid Waste will meet the electricity needs of 25,000 establishments with 5MW energy generated from waste. Figure 8: Licensed electricity generation plants over the years Other SOURCE:

16 Energy Issue Energy Generation From Renewable Sources Turkey's 2023 Renewable Energy Target

17 Climate Change Bringing Carbon Emissions Under Control ü The greatest global success has been achieved with the first Kyoto Protocol taking measures against the biggest threats to our livelihood mainly global warming and climate change. ü This protocol aimed to bring the carbon emissions of all countries under control. ü The United Nations Conference on Climate Change (21. Conference of Parties COP21) held in Paris on 12 December 2015, is the most comprehensive international agreement to date to have signed for climate issues, gathering the largest number of signatures of 175 countries in one day. ü The aim of the Paris Treaty, is to limit the total greenhouse gas emissions-global warming, by between 1,5 and 2 degrees by the end of 2100.

18 Climate Change Bringing Carbon Emissions Under Control ü Turkey has stated its commitment to reducing greenhouse gas emission by 2030, it aims to cut the current number of emissions by 21% from million tons of CO2 equivalent to just 929 million tons of CO2 equivalent. ü By 2023, Turkey will provide 21 billion m3 less natural gas imports with electricity generated from renewable energy sources and there will be 47 million tons less CO2 emissions in this framework. ü Hexagon Solid Waste reduces its carbon footprint through the elimination of harmful gases emitted by waste through biogas produced from the waste, thereafter increasing the organic matter of the soil with compost produced. And in this regard, awarded by many organizations. SOURCE:

19 THANK YOU.