First presentation for investors -1 Table of contents SuperSteel nano-technology product, and process know-how Problem Resolve the problem SuperSteel = key technology Business model Marketing & Sales Risk Management Financing plan & the key questions Status & Plan (chart) Contact © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 1/10 Problem Global focusing: Steel mills & Steel users & Machine operation sectors Environment - CO2 emission Cost effectiveness Too many steel types ----- needs reduction Fatigue life limit Operation security of the steel made products © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 2/10 Resolve the problem …With the SuperSteel nano-technology: Owned by two Hungarian high expertise metallurgists (father and son) New metall-physical frame structure, with new strenghtening system Reduced CO2, dust emission with min.60% (in the steel mills & steel users, & machine operation sectors together) Less used steel with min.30% in the concrete application 0-15% less steel producing cost (EUR/ton) depending to the steel type Less specific cost with min.60% (EUR/1MPa usability strength) Double fatugue life limit of the steel made products Much better welding parameters Stainless steel producing, with extra high strength level Aircorrosion resistent steel at lower cost Reduced expensive alloys content SuperSteel: High strength & double fatigue life limit & cheap price © Игорь Пивоваров, 2010 together . These parameters are unique together © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 3/10 SuperSteel=key technology Brand new strengthening mechanism system Brand new paradigm : less alloys, simplified process, reduced cost This is a nano-technology Needs no technological equipment developing in the steel mill Reduced hot treatment needed in the steel mill. Less waste in the steel mill Products made from SuperSteel will be invincible due to the extreme better parameters, and the lower specific production cost Much higher security of the products made from SuperSteel Key issues: Using different chemical composition and different manufacturing parameters in the steel mill, on the same equipment Short returning investment © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 4/10 Business model Looking for buyers/users (investors) The object of the sales: Giving user right for different buyers/users Buyers/users: Financials, and professionals as well Target : financing sector, steel user, and steel maker industry Payment system: selling against one payment, or licensing against first payment and yearly royalty fee Cost of the sales process: travel & lawyer & manufacturing & test costs & managing cost Timing: The SuperSteel is a ready technology. „Spot business” is possible. Investment returning period: some months since using the technology (volume:1-2millionTons/year) Exit: Anytime, after returning the investment © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 6 5/10 Marketing & sales Evaluation of the market USA’s production is more than 100million tons/year The SuperSteel is an effective tool against the dumping of China The growing speed depends to the buyers/users economy potential. Companies, governments, and funds, are welcome! SuperSteel: The right tool to reach the world leadership position, mostly in the heavy industry , and in all other industries as well. Competitors: The HSLA (high strenght low alloys steel), alloys technology ..more expensive, and limited technical potential) The aluminium in the car industry limit, and very limited technical potential) © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 (BUT! (BUT..more expensive, less fatigue life 6/10 Risk, and negatives Risks: Conservativism Not enough money for the commercial job No direct contact to the big players (investors, steel users, and makers) Conflict of interest due to the less volume of material flow Jealousy, mostly from the developers/engineers side Disbelief against the dedicated results (There are a lot of laboratory results.) Disbelief that it can be discovered by Hungarians (look at the past! How many genious born in Hungary) Bureaucracy Negatives: The SuperSteel mechanical parameters are available before the contract. BUT! The secrets of the know-how can be given only after the „User-right transfer contract” signature. The first meeting, must be in Hungary due to the older inventor’s/ owner’s age (82 y.old). © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 7/10 Management Business management: East American Advisor (EAA) Metallurgic professional, and technical management: Mr. Henrik Giflo senior, and Mr. Henrik Giflo junior (inventors/owner) Project manager: Péter Vattay (EAA) previous projects: screw, marble, building industry, financing sectors Two inventors/scientists: Mr. Henrik Giflo senior, and Mr. Henrik Giflo junior © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 8/10 Investment plan Motto: Mr. Ronald Reagan told „1 page is enough” The object of the business: Giving user right for buyer/user Possible to pay one amount, or Possible to pay first payment, and yearly royalty payment Please look at the attached excel table © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 Parameters: Saving Steel mills: (EUR/Ton) Estimated present prod. vol. (millionTon/year) Estimated production savings in steel mill (average %) 5 5% Average steel price (EUR/Tonn): 500 25 30% 150 Savings due to the min. double life limit (min.%): 30% 150 Energy cost saving due to the less weight (min.%): 10% 670 Total savings: 845 Steel manufacturer and enduser: Specific steel volume saving (Minimum%): Product operators: © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 Production, cost saving, and licensing plan SuperSteel production Volume (millionTon): Total 7 1. year 2.year 3.year 4.year 5. year 6.year 7. year years 0,1 0,3 0,5 1 1 1,5 2 6,4 Tons Steel mill savings: Steel manufacturer and enduser: 3 8 13 25 25 37,5 50 160 MillionEUR 15 45 75 150 150 225 300 960 MillionEUR Product operators: 82 246 410 820 820 5 248 MillionEUR Double lifetime: 15 45 75 150 150 225 960 MillionEUR Energy cost savings: 67 201 335 670 670 1005 1340 4 288 MillionEUR Total: 100 299 498 995 1 008 1 493 1 990 6 381 MillionEUR 15 15 15 1 230 1 640 300 Know-how price versions: 1.Fix price: 50 2.First payment & royalty 20 15 15 20 Royalty: yearly payment: 0-1million Ton/year: 15EUR/Ton/year (min.1 million ton/year) 1-2 million Ton/year: 10EUR/Ton/year (min.1 million ton/year) 2-unlimited Ton/year: 7,5EUR/Ton/year (min.2 million ton/year) © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 115 Extra profit MillionER/year 1,800 1,600 1,400 1,200 1,000 Product opreator Steel manufacturer Steel mill extra profit 800 Inventor's royalty fee 600 400 200 0 1. year 2.year 3.year 4.year © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 5. year 6.year 7. year 9/10 Actual status The SuperSteel is a result of a permanent development work. The first step was done several decades before Тhe SuperSteel is ready for industrial use, Every existing steel mill is able to use the technology Target: to sell user right The value of the project equal with the value of the know-how, There is no loan behind the project, it is free from this kind of obligation. The owners are absolute owners. Investment before: The inventors invest during several decades years some ten million EUR EAA marketing investment in 3 years 1 million EUR © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011 10/10 Thank you for your attention Contact: East American Advisor Llc. (EAA) Péter Vattay Representing: owners/inventors & EAA e-mail:[email protected] Tel.:+36-30-200-7099 Fax:+36-1-246-7033 1121 Budapest Futrinka u.5. Hungary © Игорь Пивоваров, 2010 © Российская Ассоциация Венчурного Инвестирования, 2010, 2011