nanomaterials for sustainable mobility
TRANSCRIPT
NANOMATERIALS FOR SUSTAINABLE MOBILITYINVESTOR DECK 04/2021
© 2021 Silpara Technologies, All Rights Reserved
www.silparatech.com
Existing tire tread formulations represent 15% of vehicle fuel consumption and limit vehicle range.
Current tire tread recipes have reached a limit to the amount of rolling resistance, durability, and grip that can be achieved.
© 2021 Silpara Technologies, All Rights Reserved
SILPARA has developed a proprietary nanomaterial
for radial truck & bus tire treads that increases fuel mileage and extends range.
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© 2021 Silpara Technologies, All Rights Reserved
$9.5 billion global market by 2026 in truck & bus tire tread.
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Future growth driven by unique requirements within the EV passenger vehicle market.
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www.silparatech.com
EXPANDING THE INDUSTRY “MAGIC TRIANGLE”
CONTROL
ROLLING RESISTANCE INDEXED TRIANGLE AREA
DURABILITY / WEAR WET GRIP / TRACTION0,7 0,8 0,9 1,0 1,1 1,2 1,3
SILPARA Type 1
SILPARA Type 2
SILPARAT ype 3
Improve fuel efficiency
Extend truck & bus radial tire life
Reduce overall CO2 emissions
Reduce tire particulate generation
Reduce raw material consumption
“Drop-in” liquid to liquid mix
CONTROL
SILPARA Type 1
SILPARA Type 2
SILPARA Type 3
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300 million tons global T&B diesel fuel CO2 emissions per year.
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A 4% reduction in fuel consumption represents 100 milliontons of CO2 avoidance and $27 billion in fuel savings.
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1st Revenue in 2023 – positive cash flow in 2024
2021
RETREAD DESIGN & MANUFACTURE
INDEPENDENT RETREAD TEST
2022
NANOSTRUCTURE CHARACTERIZATION
FLEET TEST #1
2023
1ST MANUFACTURING “DROP-IN”
FLEET TEST #2
2024
1ST TREAD DESIGN RELEASE
FLEET TEST #3
GO-TO-MARKET STRATEGY
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LEADERSHIP & EXPERIENCE
• 30+ years in specialty materials development
• IBM, W. L. Gore & Associates, Michelin,Lehigh Technologies
• Recent professional focus on sustainabilityin transportation
• 11 US patents
• External Advisory Board member for theSchool of Materials Science and Engineeringat The Georgia Institute of Technology
• 30+ years senior executive in global,Fortune 500 electronics manufacturing
• W.L. Gore & Associates, Belden,TE Connectivity, Commscope,Texas Instruments
• Recent professional focus on corporateacquisition, merger synergy, internationalregulatory filing, and IP maintenance
• Former board member APOLAN, EIA-TIATOM ROSENMAYER, PhDFounder & CTO
BRIAN O’CONNELPartner & CCO
Decades of leadership with a deep understanding & presence in the tire manufacturing & materials industry.
© 2021 Silpara Technologies, All Rights Reserved
www.silparatech.com
INDUSTRY COMPARISON
APPENDIX
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SILPARA PERFORMANCE
Greatly improved natural rubber tire tread performance:
• Rolling resistance improvement to 34%
• Wear improvement to 15%
• Cost Savings - 4% Fuel ~ $27 billion• Cost Savings - Tread/Tire Replacement
Clear and sizable environmental benefits:
• CO2 Reduction - 100 million tons
• Material Reduction - 41 million treads
• Material Sustainability - 328 million kilos
• Overall Carbon Reduction ~ 200 million tons (est)
ROTATION
TRAVEL DIRECTION
Rolling Resistance is the heat energy lost due to internal and external tread friction.
RESISTANCE DIRECTION
CONTACT PATCH
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Demonstrated proof of increased polymer filler interaction and a nano-scale network.
Common TBR tire tread microstructure Silpara molecular composite TBR tire tread microstructure
In common TBR tread natural rubber does not bond well to silica resulting in weak “polymer-filler interaction” resulting in a loose, weak network.
SILPARA nano-scale network enables bonding between NR & silica, resulting in a strong, tough, low-rolling-resistance tread rubber compound.
THE PRODUCT
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OPTIMIZATION OF A DROP-IN TECHNOLOGY
Liquid mixing technology enhances polymer - filler interaction.
PRESENT DAY
LATEX LATEXSILICA PRECURSOR SILICA PRECURSOR
COAGULATE & DRY CONCENTRATEPRECIPITATE & DRY SILPARA FORMULATE
SOLID MIXING COAGULATE, PRECIPITATE, & DRY
LIQUID MIXING
COMPOSITE COMPOSITE
POLYMER SLAB SILICA POWDER
FUTURE STATE Industry norm: solid-solid mixingPoor polymer-filler interaction
Silpara: liquid-liquid mixingBreakthrough in polymer-filler interaction
Dry vs. Wet mixing
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MARKET ECOSYSTEM
Silpara product introduction fits within the upstream raw natural rubber
collection/coagulation ecosystem.
3rd PARTY NATURAL RUBBER
NATURAL RUBBER TREES
RUBBER CULTIVATION
S.E. ASIA S.E. ASIA GLOBAL
PROCESSING DISTRIBUTION
TAPPING
LATEX COLLECTION
COAGULATION/SLABS
TRANSPORT SHREDDING WASHING
LAB TEST PALLETIZING
SHREDDING
DRYING
PACKING
DISTRIBUTION
STORAGEMANUFACTURE
DELIVERY
HANGING
CREPING
INDUSTRIAL TRANSPORTATION
Product sold directly to tire manufacturers.
Focus on material sales with startup options for:
• Development contracts
• Product licensing
• Option to sell additive
• Option to sell masterbatch
• Option for toll conversion
© 2021 Silpara Technologies, All Rights Reserved
www.silparatech.com
2026 REVENUE & OI POTENTIAL
TBR TAM ~ $65 billion ~ TBR global revenue @ 290 million global TBR tire tread units/year
TBR TREAD SAM ~ 9.5 billion ~ 15% tread material content
ADOPTION RATE ~ 20%
2026 TBR PAM ~ $2.0 billion ~ 20% Low RR tread Adoption
PAM SHARE ~ 5%
SILPARA MATERIAL CONTENT COST ~ $28/tire
SILPARA GROSS PROFIT ~ $8.50/tire
SILPARA NET PROFIT ~ $5.50/tire
2026 Revenue ~ $98 million2026 EBITDA ~ $19.2
2026 OI % ~ 19.6
THANK YOU FOR YOUR ATTENTIONSilpara Technologies LLC | 207 Jefferson Place, Decatur, GA 30030 | www.silparatech.com | [email protected] | 336-392-6877