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Filtration and Separation Technologies Address Two Main Market Needs

• Increasingly strict Particulate Matter (PM) emission limits are being enforced worldwide. Poor air quality is the number 1 environmental cause of premature death in the EU*

• Majority of combustion processes are associated with PM Emissions. Cleaning hot gases is mandatory for heat recovery and to improve plant efficiency.

• Many other processes in large industrial plants are sources of PM: (Steel, Cement, Paper, Glass…etc.).

EMISSIONS CONTROLEnvironmental Improvement Serious Economic Added Value

• 60% of the world chemical related industries handle products in the fine powder form.

• Significant shares also apply to the Pharmaceutical Food Ingredients, and Mineral industries, among others.

• Virtually all powder processing industries need gas-solid separation

• Many are actively seeking to optimize the yield of their processes and reduce powder losses.

POWDER RECOVERY

*Source: EU Clean Policy Act 2013 2

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Market Overview: A Large, Growing Market for Filtration & Separation Technologies

2010 2017$ 0

$ 2

$ 4

$ 6

$ 8

$ 10

$ 12

$ 7.3

$ 9.7

USD

Bill

ions

Global Industrial Filtration Market1

CAGR = 4.9%

1Source: Frost & Sullivan2 Examples include the so called MCP Directive for small to medium size plants from the European Commission (18 December 2013)

Drivers of Growth

Industrials seeking alternative, disruptive solutions:

New regulatory landscapes2 , more stringent emission controls

Emerging Markets

Search for cheaper/environmentally sound solutions

Lower total cost of ownership

Higher efficiency production processes

Alternative sources of energy, including heat recovery

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Despite numerous advantages, cyclones have low efficiency

Reverse Flow Cyclones Benefits:

· Robust · Absence of maintenance · No pressure problems · No moving parts . Work on a dry basis · No temperature restrictions · No electrostatic components . No filters

Wide Industrial Application

Problem: Low efficiency for particles < 10 µm*

TYPICALLY, CYCLONES HAVE TO BE COMPLEMENTED

WITH OTHER SEPARATORS DUE TO THEIR LOW

EFFICIENCY

*1µm = 1/1000mm

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ACS Core Technology: Highly Efficient Cyclones obtained by a scientifically approach

Understanding How Cyclones Work

Optimizing Cyclone Efficiency

Unique Cyclonic Recirculation Systems

Difficult to model cyclone separation dynamics ACS has developed its own unique model for cyclone

efficiency prediction which takes into account agglomeration (clustering) in turbulent flow fields

ACS can rapidly generate millions of virtual prototypes and, through numerical optimization, select the best geometry to each given cyclone application

The optimization approach has resulted in multiple cyclone patents

ACS has further increased cyclone efficiency with unique patented recirculation systems, using pure mechanical or electrostatic dynamics (ReCyclone®)

ACS’ competitive advantage is sustained by a unique ability to accurately estimate, and consequently guarantee, a requested efficiency, resulting in better cyclones, tuned for their specific application

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ESPs

Multi-cyclones

EFFICIENCY Wet Venturi

Scubbers

Bagfilters

TOTAL COST OF OWNERSHIP

ACS Cyclone Systems

Unique provider of high performance gas/solid separation at the cost of conventional cyclones

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By its superior efficiency, ACS cyclones displace other more maintenance demanding technologies, such as Bag Filters, or much more expensive ones, such as ESPs

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ACS has grown to become a worldwide reference in cyclones in 5 years of existence

Established in May 2008 by Pedro Araújo and Romualdo Salcedo, supported by the CoHitec program and promoted by COTEC

Backed by Espírito Santo Ventures in 2009, a renowned Venture Capitalist

Headquarters in Porto, Portugal, with 16 employees today

Unique scientific knowledge in cyclone design optimization and particle agglomeration modeling

Has become a worldwide reference in cyclones, with over 120 successful installations in 26 countries in 5 years

Scalable, highly profitable business model based on‒ Clearly differentiated market position‒ Optimized cyclone design and accurate efficiency prediction capabilities‒ Validated right first time installation‒ Introducing standardized solutions to meet a wide range of client industry

applications

ACS Pilot System

ACS Office in Porto

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Proven technology, global footprint - ACS has installed products in 26 countries, with relevant references

EDP – ENERGIAS DE PORTUGAL (energy recovery)SONAE INDUSTRIA (particle board)MERCK (pharmaceuticals)TEVA (pharmaceuticals)NESTLE (milk powder production)ARLA FOODS (proteins production)EUROPEAN SPALLATION SOURCE (nuclear energy)

MOENGO MINERALS (mineral processing)VYNCKE (biomass boilers)HOVIONE (pharmaceuticals)HEIDELBERG CEMENT (cement manufacturer)CORRUGADOS GETAFE (steel making)BOZEL (steel making)BASUKI (coal boilers)

Some of our clients, among more than 80

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Case Study – Enabling the Recovery of Wasted Thermal Energy from Biomass Boiler for EDP

• Expected Date of Conclusion 01/03/2015

• Client EDP – Energias de Portugal, an integrated utility company, generates, distributes, and supplies electricity in Portugal

• Location Portugal – Mangualde

• Technology Hurricane (10 batteries of 6 cyclones)

• Application Fly ash reduction at high temperature in wood waste boiler. Objective: using the biomass boiler off gases instead of natural gas for the process.

• Dimension 247,000 m3/h @ 305ºC

• Guaranteed Emissions < 100 mg/Nm3

• Alternative technology No known alternative9

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Commercialization strategy both directly address customers and partner with solution

Own Marketing, Sales Force, Agencies, Distributors

2. Dryer / Boiler

Manufacturers

ACS

3. Broad solution providers

4. Clients

Systems for new dryers/boilers Partnership with Boiler or Broad Solution Provider

Systems for existing dryers/boilers

ReCyclone EH to integrate anew Berkes boiler for customer AMBEV.

Hurricane System to be integrated by AZO for a powder recovery project for customer UNILEVER.

Hurricane cyclones to be supplied directly to customer Nestlé for an existing spray dryer.

EXAMPLES OF PREVIOUS PROJECTS

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How it all started? A well balanced nuclear team in R&D, Engineering and Commercialization

Founder and CEO – Pedro Ribas Araújo Deep knowledge both of the business and of the technology Industrial Engineering and Management from FEUP – University of Porto MBA from NOVA University of Lisbon

Founder and CTO – Romualdo Salcedo Unique experience of over 20 years in the field with numerous published articles Chemical Engineering Degree from University of Porto MSc (1977) and PhD (1981) at McGill University, Montreal

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Ydeas MBA Pedro / Cohitec I

“Virtual Company”

ACS - Cohitec II

“Real ACS” in Edifício

Promonet

ACS in Edifício Scala

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IdeationExploring the potential of many different ideas.

Pedro approaches Romualdo to explore business idea(01/2006)

ACS Idea is accepted for Cohitec I(02/2007)

Pedro & Romualdo decide bulding up ACS(01/2008)

Presentation for investors

(10/2008)

ESV funding of 1,4M€

(06/2009)

Strategic Partner Entry?

Advanced Cyclone Systems from scratch to where we are and the important role of COTEC

ACS is accepted for Cohitec I(01/2008)

1st year of business (Loss=±150k€)(12/2010)

5th year(Orders: ±4M€Profit= ±1M€)(12/2014)

TechnologiesBusiness Projects

Team Building.Creating value propositions. Business project development.

Market studiesOvercoming legal obstacles.Final business plan.Gaining credibility from investors

Internet as a platform to expose ACS to the worldLearning from clients where ACS strongest markets are. Product development, refining and standardization.

Focus strategy on the best geographical and application markets.

ACS will need a boost NOW!

Companies