SUMTEQ Information Memorandum Dämmung 4.0 The New Generation of Insulation Cologne July 2017
Highlights 1 SUMTEQ at a glance Founded in 2014 by visionary management team in the field of highperformance insulation. Supported by seasoned and reliable investors. 5 Significant growth opportunities in attractive markets and multiple applications Positioning in multiple applications with large proven markets. Focusing on fast-growing high-performance insulation applications. 2 First producer of disruptive high performance polymer nanofoams USP by an innovative and IP protected technology to produce highperformance insulation materials based on polymer nanofoam (SUMFOAM) under industrial conditions for the first time. 6 Innovative product with significant competitive benefits positioned via a distinct market entry strategy Competitive advantages due to low-cost production. Market entry in niche applications segments for high-performance insulation materials, followed by positioning in volume insulation markets by using economies of scale. 3 4 Scaleable and cost-efficient process with sustainable benefit Up-scaling to production conditions realized. Advantage of cost-efficient production process plus a maximized ecological benefit compared to alternative high-performance insulating materials. Unique material properties enabling the first low-cost highperformance insulation 7 Diversified product portfolio and close strategic partnerships providing fast market access Co-operations and application-specific pilot projects for various applications with specific market players ensure a fast and optimal market access and launch of SUMFOAM product portfolio. SUMFOAM is fully recycable and combines an excellent and long-lasting insulation efficiency with a very high mechanical stability at low densities. 2
1 SUMTEQ at a glance Founder and management team Alexander Müller Founder and Managing Director Marketing / Sales PhD in chemistry until 2013 Inventor of SUMFOAM Advisors and investors Roland Oberhoffer Founder and Managing Director Production/Techn. PhD in chemistry until 2014 Inventor of SUMFOAM Michael Hoffmann Founder and Managing Director Finance / Org. Studies of economics until 2007 Business activities in consultancy and industry was founded in November 2014 by Roland Oberhoffer, Alexander Müller and Michael Hoffmann as a spin-off of the University of Cologne. is a high-tech start-up focusing on the further development of polymer nanofoams and its industrialization especially in the field of highperformance thermal insulation. Joachim Kuhn Klaus-Dieter Maubach Reinhard Strey has the target to drive the disruptive technology together with selected Chairman of the Board Member of the Board Member of the Board industry partners to series production and enter successfully into Founder and CEO of va-q-tec AG Advisor and investor (va-q-tec) Former CTO of E.ON SE Former CEO of Capital Stage (renewable energy) Advisor and investor Former Prof. for Phy. Chemistry Founding partner and advisor Inventor of SUMFOAM growing markets. is actually employing 9 staff members and is supported by a complementary investor team providing a strong strategic network. Our vision is project-specifically funded by state subsidy programs at federal and federal state level. is continuously looking for further strategic and financial partner targeting for the realization of SUMTEQ s vision Dämmung 4.0 The New Generation of Insulation. 3
2 First producer of disruptive high-performance polymer nanofoams with highly-efficient thermal insulation property Conventional foam SUMFOAM same magnification IP-protected SUMTEQ-innovation High-performance polymer nanofoam with ultra-fine lightweight structures Pore size 1.000x reduced vs. conventional foam (e.g. Styropor ) High-performance thermal insulation property Cost-efficient, disruptive production technology IP protection by 3 patents owned by SUMTEQ SUMFOAM Corresponding material properties Adjustable nanostructure 0,05 1 µm Customized densities 50 200 g/l Low thermal conductivity (l) actual l < 25 mw/mk (= high insulation performance) target l < 20 mw/mk Very high mechanical stability > 0,7 MPa Foamed with CO₂ at 100% Material recyclable at 100% 4
3 Scaleable and cost-efficient process with sustainable benefit Production process Cost-efficient production process (1) Polymerization (2) Foaming (3) Customization (1) Polymerization (3) Customization Low-cost raw material Industrial production process Easy particle handling Shape flexibility Easy and dust-free handling Complex geometries possible Production of input polymer Production of polymer nanofoam as granulate by CO 2 - extraction Flexible shape design of SUMFOAM (2) Foaming via CO 2 -Extraction Fast production cycles (< 2 h) Climate-friendly CO 2 Minimal energy consumption Scaling process Easy scale-up processing Laboratory 0.001 l Testing Facility > 10 l Pilot Plant > 250 l Scale-up by a volume factor of more than 250.000 realized Transfer to production conditions implemented Small-series production by toll manufacturing started Risk-mitigation 40 % Use of already existing facilities and infrastructure High potential of flexibilization by toll manufacturing Until 2014 2015/2016 2016 Moderate demand for investments for the upcoming mid-term period 5
SUMFOAM Performance (l) SUMFOAM Performance (l) 4 Unique material properties enabling the first lowcost high-performance insulation Value proposition Unique features Low and long-lasting thermal conductivity efficient insulation Slim and space saving economical volume Efficient Economical Robust Mechanical stability at low weight robust element Fully recyclable / climate-friendly CO₂ sustainable technology Easy, dust-free handling / shaping versatile applications Sustainable Versatile Thermal conductivity (l) 1) Continuously performance improvement Performance standards depending on application Application 1: Vacuum Isolations Panels Application 2: Classic Insulation Required material performance for segement-specific niche insulation application (vacuum panels) realized in a short time Standard Insulation actual l = 28 Required material performance for conventional volume market insulation applications (classic insulation) in countinous improvement process, targeting for l < 20 Competitive Material Performance Competitive Material Performance 2015 2016 actual / target l < 5 actual l < 24 High-performance Insulation target l < 20 until 2016 2017 Comparable development process and process cycles as for those of application 1 1) Low values of thermal conductivity (l) correspond to high insulation values Milestones of performance improvement thermal conductivity (l) the lower the better 6
5 Significant growth opportunities in attractive markets and multiple applications Building / Construction Materials Vacuum Insulation Panels (VIPs) Cooling Devices Thermal insulation applications Needed for efficient, space-saving, lightweight and pressure-resistant insulation applications Risk mitigation by cycle independent application segments Thermal Packaging Cold Chain Logistics Non-insulation Technical Applications Technical applications (non-insulation) Alternative non-insulating technical applications possible (e.g. vehicle components, shock absorption, light-weight constructions, filtration, etc.) Thermal insulation market characteristics Market structure 50% 10-15% 35-40% High-performance Insulation Conventional Foams Glass Fiber and Mineral Wool Market development 32,5 44,5 +8,4% 56,8 72,6 92,7 2011 2015 2018 2021 2024 Global Market in bln. USD Sizeable total market: ~50 bln. USD in 2016 (Europe ~30%), estimated to be doubled until 2024 by high growth expectations (CAGR +8,4%) Thereof high-performance insulation materials: ~6 bln. USD, growth at an exponential rate (CAGR +11,2 %) Present high-performance insulation i.a. Aerogels, VIPs Current market share of 10-15% + high level of energy efficiency - high production costs and price - non-easy material handling Conventional foams i.a. EPS, PU, XPS Current market share of 35-40% + low-cost production - low/medium levels of efficiency - less costs sensitiveness 7
Sales Price Thermal conductivity (l) 6 Innovative product with significant competitive benefits positioned with a distinct market entry strategy Competitive product landscape of insulation materials 50 45 40 35 30 25 20 15 10 5 0 VIPs Aerogel SUM- FOAM PU Neopor XPS EPS Rock wool Fiber glass Insulation market is clustered into two segments: Standard insulation low performance and low prices (present) High-tech insulation high performance and high prices Benefiting from cheap input raw materials and a cost-efficient technology SUMFOAM is the first low-cost high-performance insulation material high (present) High-performance Insulation 1 Market entry strategy and market positioning Launch of beta-products via external platforms Continuous pilot testings and common market introduction with selected industry partners 2 Conventional Foams Glass Fiber and Mineral Wool 1 2 Short-term positioning: High-performance materials for niche applications differentiation to high-performance insulation via cost advantage Long-term positioning: Volume markets of present standard insulation low Market volume / share Thermal Conductivity (l) high differentiation to conventional foams via performance advantage 8
7 Diversified product portfolio and close strategic partnerships providing fast market access Core material for vacuum insulation panels (VIPs) (insulation) SUMFOAM -VIP -Air -X Stand alone material for alternative insulation applications (insulation) Stand alone material for alternative technical applications (non-insulation) Diversified three-product portfolio SUMFOAM-VIP Application-specific cooperation with va-q-tec AG, established German VIP-producer SUMFOAM-Air Several pilot projects with industry partners in the field of construction materials and thermal packaging (co-operations initiated) SUMFOAM-X Material with potential for alternative non-insulating applications, such as vehicle components and shock absorption (in evaluation) Close strategic partnerships Targeted selection of business partners Providing technological and industry know-how, market access and strategic network Technology industrialization and piloting together with industry-specific experts Common value chain implementation with established production partners (co-operations initiated) Customer access via established segment-specific market players, already existing sales agreements Supported by public institutions providing different state subsidy programs 9
Disclaimer This document contains strictly confidential and legally protected information. The contents of this document June only be used by the intended addressee. Any form of unauthorized publication, use, duplication or distribution to third parties is not permitted. The document has been prepared exclusively for informational purposes and does not serve as a basis for any contractual obligations All information presented in this document are current as of the date provided. This document contains forward-looking statements. Because such statements involve risks and uncertainties, including, but not limited to, uncertainties related to SUMTEQ s current stage of technology and product development and dependence on collaborative arrangements, actual results and developments June differ materially. Sponsored by SUMTEQ GmbH Dr. Alexander Müller Dr. Roland Oberhoffer Michael Hoffmann DBU (Project Funding) Luxemburger Str. 90 50939 Köln +49-221-93371342 mh@sumteq.com Projektträger MIWF WIPANO BMWI Jülich Land NRW 10