CCBL Innovative technology for lube

blending

StartUp Village, June 2015 Skolkovo

01/Problem and pain

Lubes is very in vast of technological areas

more than 40 000 000 tons produced in 2014 …

… but technology of production of lubes stacks ~40 years ago!

It can look gorgeous… But inside it’s not too far from cooking pot

What does it mean for the lube manufacturer?

• High energy consumption (4 hours at +50 °С) • Low flexibility of production (tanks is huge) • Low dispersion (low quality, recycling)

Money losses! More then $400M/year

world-wide energy costs

02/Our solution

Meet CCBL! First truly innovative tech for blending!

Competitives: Energy consumption (x7 more effective!) Small size (x5 smaller!) Small time of production (>x2 faster!) Flexibility (from 1 ton!) Extra-high quality Fully integrated in manufacture scheme!

Money for manufacturer! Quality for consumer! Win-Win Case:

Our secret sauce

mechanical blending

CCBL

• Break-through cavitational system • More than 10 years R&D • 7 generations of unit

Outside

Inside

03/Mobile CCBL unit

04/History and status

• 2 pilot plants (Kaliningrad&Egorievsk) • Labs proven technology (NAMI-Khim, Kracov

Institute, Afton Chemical) • Mobile CCBL plant (6 ton/hour) for testing on

manufacturer side • IP, certifications (Russia and EU) - done • Proven interest from consumer • High interest from lead engineering companies

We are ready to start commercialization!

05/Meat the team

Steve King, CMO • More than 25 years in lube business • Ex. Regional Manager of Castrol-BP(Middle East) • Ex. Marketing director BP (headquarters)

Konstantin Atamanov, CTO • More than 30 years in lube engineering • Ex. Engineer at Nesteoil, Galf-international

Our team – our core asset!

• 3 more engineers with great expirees in lube production (ex. Gazprom-Neft, Lukoil, Rosneft, Chevron, Teboil)

• 3 high-professional partners in Poland, Germany, India

Sergey Medyanskiy, CEO • 7 years in technology-based startups • Experience in import hi-tech from Germany

(«RÖSLER Tyre Innovators» GmbH.) • Serial entrepreneur

AND:

06/Detailed planning. Our force

Clear focused step-by-step plan

• R&D partnership with TuTech Innovation GmbH for speed-up penetration of CCBL in Germany and Benelux

• Marketing via conferences (ICIS World Base Oils & Lubricants Conferences)

• Partnership with engineering companies (AST, ABB, Barath e.t.c) • Marketing via industrial magazines • Sales

We are looking for

• Partnership (engineering, distribution) • Investments ($0,5M to accelerate marketing and sales)

you! Just right now

Mobile unit on the go in Prista (Bulgaria) for manufacture tests!

Partners

+ proven high-efficiency technology + outstanding experienced international team + detailed road-map of development

Great opportunity! Let’s discuss

ceo@gqoil.com www.gqoil.com

.

Mobile plant construction

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00/Appendix

CCBL - technical specifications

Parameters Unit The apparatus

Working pressure, maximum МPа

(KGs/сm2) 0,25 (2,5)

Estimated pressure МPа

(KGs/сm2) 0,375 (3,75)

The pressure test МPа

(KGs/сm2) 0,375 (3,75)

Temperature of medium °С + 20

The working environment

composition lubricants

fire hazard yes

self-ignition temperature °С 300 - 350

Accuracy class according to OHSAS 18001 4

Performance m3/h 6-30

Dimensions

L mm 4200

H mm 1000

B mm 1210

GQOIL Innovation Europe

00/Appendix

Process mechanical blending in-line blending CCBL

Production of 30 MT 3 - 6 h 2 - 4 h 1 h

Production of 1 MT no no yes

Process temperature +50 - 60 ̊C +40 - 60 ̊C +20 ̊C

Dosing system no yes yes

Finished product yes no yes

Comparison CCBL and traditional technologies on key parameters

Indicator Unit mechanical

blending

in-line

blending CCBL

The average time for the manufacture of one lot products min. 180-300 90-300 60

A typical lot size of commodity products on a particular technology МТ 3-20 15-60 1-60

Specific electricity consumption of pumps, blenders, heaters,

conveyers, etc.. (1MT on products) Δ- small

□ - middle

O - high

O /□

Δ

Δ

Specific steam consumption for heating (counting on 1MT

products) Δ- small

□ - middle

O - high

O /□

□ / Δ

no

00/Appendix

Averaged a comparative assessment of the cost-effectiveness

Indicator Unit

Small-scale installations Large-installation

mechanical

blending CCBL

in-line

blending CCBL

A lot size of commodity products МТ 6 6 40 40

Time for the manufacture of one lot products min. 180-300 60 120-180 60

The average time for the manufacture of one lot

products min. 240 60 150 60

Electricity consumption (pumps, blenders…) kWt 42 14 60 22

Steam consumption (for heating) m3 1,8 - 9 -

Time production in recalculation on 1 MT min. 40 10 3,75 1,5

Electricity consumption in recalculation on 1 MT kWt 7 2,3 1,5 0,55

Steam consumption in recalculation on 1 MT m3 0,3 --- 0,225 ---

The cost of electricity €/kWt 1,4 1,4 1,4 1,4

The cost of steam €/МТ 10 --- 10 ---

The cost of electricity to produce 1 MT €/ МТ 9,80 3,22 2,10 0,77

The cost of steam to produce 1 MT €/ МТ 3 0 2,25 0

Total cost to produce 1 MT €/ МТ 12,80 3,22 4,35 0,77

The costs of production capacity at 40,000 MT/year Thous. €/year 512,0 128,8 174,0 30,8

Benefits (savings) at replacement the current

technology by CCBL Thous. €/year 383,2 --- 143,2 ---

Reducing the cost of the final process of blending at

replacement by CCBL % 75 --- 82 ---

00/Appendix

1. The preparatory stage: loading and mixing additives

at t=+20 °C in separate tank;

Mixing in main tank with base

oils or use dosing system;

2. The main stage: cavitation ”cold” blending

at t = +20 °C

3. Finish stage: pumping to the storage tank,

laboratory analysis, packaging

10-20 min

6 - 30 MT/h

CCBL – basic scheme

PREMIX TANK FINISHED PRODUCT TANK

00/Appendix

BASE OIL 1 BASE OIL 2 BASE OIL 3 BASE OIL 4 BASE OIL 5 BASE OIL 6

BULK BASE OIL

ADDITIVE 1 ADDITIVE 2 ADDITIVE 3 ADDITIVE 4

BULK ADDITIVES PACKAGED ADDITIVES

BLENDING AREA

FINISHED PRODUCT

TANK

PREMIX TANK

Lube Oil Blending Plant with CCBL - Schematic Diagram

00/Appendix

00/Appendix

1 year 2 year 3 year 1Q 2Q 3Q 4Q 1-4Q 1Q 2Q 3Q 4Q 1-4Q 1Q 2Q 3Q 4Q 1-4Q

Unit 8 ton/hour 1 1 2 1 1 2 1 1 1 1 4

Unit 16 ton/hour 0 1 1 2 1 1 1 3

Unit 30 ton/hour 0 0 1 1

Total units sold 0 1 1 2 2 2 4 4 6 6 7 9 12 14 14

Sales plan

Price Cost

Unit 8 tonn/hour 32M rub. 10M rub.

Unit 16 tonn/hour 43M rub. 12M rub.

Unit 30 tonn/hour 54M rub. 15M rub.

1 year 1 year 1 year

Revenue 32 450 000р. 259 800 000р. 423 100 000р.

OPEX 20 519 200р. 37 498 585р. 25 533 980р.

EBIT 2 430 800р. 179 301 415р. 308 566 020р.

Key financials