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Providing Cost-Effective Technology Driven Solutions For Sustainable Waste Disposal (NASDAQ: BHTG)

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Page 1: ProvidingCost-Effective Technology Driven Solutions For ...filecache.investorroom.com/mr5ir_biohitech/245... · §Waste processing facilities -divert mixed municipal solid waste utilizing

Providing Cost-EffectiveTechnology Driven Solutions For

Sustainable Waste Disposal

(NASDAQ: BHTG)

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This presentation has been prepared by BioHiTech Global, Inc. (the ‘Company’) and includes information from other sources believed by management to be reliable. Norepresentation or warranty, express or implied, is made as to the accuracy or completeness of any of the information set forth herein. This presentation may containsummaries of the terms of certain documents and agreements, but reference is made to the actual documents and agreements for the complete information containedherein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice.

This presentation contains statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be“forward-looking statements within the meaning of the “safe-harbor” provision of the Securities Litigation Reform Act of 1995.” These statements, estimates andprojections reflect various assumptions made by the company concerning anticipated results, which may or may not prove to be correct. All statements contained in thepresentation that address operating performance, future direction, management and control of company, events or developments that are expected to occur in the future(including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results)are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety offactors, many of which are beyond the Company’s control. Factors that could cause actual results result to differ materially from those described include, withoutlimitation, those factors disclosed under “Item 1.A. Risk Factors” in our Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2017 forthe year ended December 31, 2016. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information,future events or otherwise.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security. Any such offer will be made solely to “accredited investors” or“qualified institutional buyers,” as defined by Rule 501 of Regulation D, or investors who are not “U.S. Person” as defined in Rule 902(k) of Regulation S, each promulgatedunder the Securities Act of 1933, as amended. This presentation is qualified in its entirety by our filings with the SEC, which contain more complete information aboutthe Company and the risks of investing involving our company.

Safe Harbor

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BioHiTech provides cost-effective proprietary technology solutions that can be integrated with traditional services to significantly reduce the volume of food and municipal solid waste destined for landfills.

§ Sustainable on-site food waste disposal technology - addresses food waste at point of generation, eliminating transportation costs and problems associated with traditional waste disposal to landfills.

§ Cloud-based data analytics platform - provides actionable supply chain management information in real time to effect positive behavioral change and reduce food waste generation.

§ Waste processing facilities - divert mixed municipal solid waste utilizing proven proprietary technology to reduce weight and produce a renewable solid recovered fuel.

§ Traditional waste services management - provides a complete end-to-end disposal solution in select markets in the Mid-Atlantic region.

Our Mission

Changing The Way We Think About Managing Waste

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Revolution Series Digesters™ and the Eco-Safe Digester® Target Markets Include: ○ Restaurants ○ Government ○ Grocery/Big Box Stores

○ Quick-Serve Chains ○ Food Services ○ Hotel/Hospitality

§ Units sized to support customer food waste volume.

§ On-site solution converts food waste to a liquid that is safely discharged through any standard sewer line.

§ Processing costs are as little as $40.00 per ton in the U.S.

§ Attractive leasing model with no upfront costs or capital investment to the customer.

§ Complies with current food waste regulations.

§ Provides real-time data analytics for supply chain management and to support CSR reporting.

Our Sustainable Food Waste Disposal Products

Combining disruptive food waste disposal technology with actionable data analytics.

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Our patent pending IoT software platform leverages AWS and Slack to empower low-tech industrial machinery with high-tech data analytics capabilities and communication tools.

Powerful, Smart Technology to Increase Efficiency and Change Wasteful Behavior

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Utilization Data

Categorization

Environmental Data

Cost Savings

Regulation Compliance

REAL-TIME SUPPLY CHAIN ANALYTICS

§ Provides frictionless two-way natural language communication through chatbot technology.

§ Functions as as a virtual assistant at your fingertips.

BioHiTech Cirrus™ & BioHiTech Alto™

BHTG Smart Mode Technology§ Drives equipment performance through cloud-

connected machine learning capabilities.§ Automated optimization to reduce water usage and

lower energy consumption.

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Growing Customer Base to Drive Revenue Growth

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HEBioT® Facilities§ Aesthetically pleasing.§ Waste is unloaded and processed

inside facility § Outside environment is not exposed

to waste.§ Fully automated process.§ No worker exposure to waste.§ Sophisticated filtration system

contains odors and contaminants.§ Reduces landfill usage by up to 80%.§ Produces an EPA recognized solid

recovered fuel (SRF).§ Generates high EBITDA margins.

Our Sustainable HEBioT Solution for Mixed Municipal Solid Waste

BioHiTech owns the exclusive U.S. rights to deploy facilities using a patented High Efficiency Biological Treatment (“HEBioT”) process in 11 Northeast states and DC.

7Pictures of operational HEBioT Facility in Westbury, UK

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BioHiTech is building a vertically integrated sustainable waste management services platform driven by technology by combining traditional waste services with its sustainable technology solutions.

BioHiTech and Kinderhook Industries jointly acquired Gold Medal Resources in January 2018

§ BioHiTech owns a minority stake in Gold Medal with an option to up to 30% through future investment.

§ Gold Medal provides traditional hauling and recycling services to the Eastern Pennsylvania & Southern NJ markets.

§ BioHiTech receives a recurring annual management fee for oversight of Gold Medal’s operations leveraging it’s existing management team.

Gold Medal offers a number of synergistic opportunities to leverage BioHiTech’s Technologies

§ Provides a captive distribution network for BioHiTech’s Digesters and data analytics tools to thousands of potential customers in its service area.

§ Significant feedstock available for a HEBioT facility through their customer base of over 6,000 business and over 150,000 municipal customer locations.

§ Potential access to additional services opportunities through the Kinderhook relationship (scalable opportunity).

Integrating Traditional Services with Our Technology Driven Solutions

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Traditional Waste Disposal§Corporate and municipal leaders

continue to struggle in achieving their sustainability goals.

§Traditional waste companies fail to offer a solution.

25% RecycledOCC, Plastics, etc.

3% Composted

72% Landfilled(22% Food Waste)

(50% Residual Materials

25% RecycledOCC, Plastics, etc.

72% Landfilled(22% Food Waste)

(50% Residual Materials

3% Composted

Mixed WasteBig Box/Grocery/Retailer The Big Picture Problems

§ Insufficient infrastructure to comply with food waste diversion mandates sends only 3% to composting and the remaining 97% to landfills.

§ Lack of alternatives to landfills and Waste-to-Energy Plants for non-recyclable materials makes “Zero Waste” nearly impossible.

25% RecycledOCC, Plastics, etc.

72% Landfilled(22% Food Waste)

(50% Residual Materials)

The Individual Problems§ Implementing successful corporate

food waste diversion programs is challenging. Existing options are costly, ineffective and environmentally unsound.

§ Lack of transparency limits ability to reduce food waste generation.

The Opportunity: Traditional Waste Disposal Methods are Costly and Unsustainable

Achieving Zero Waste is Impossible!

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The BioHiTech Solution§ Zero waste is possible by contracting

direct with one proven technology solution provider.

§ No subsidies needed or additional fees to customer.

§ Actionable as early as 2018.

25% RecycledOCC, Plastics, etc.

25% Food Waste Digested On-Site

by BHTG Digesters

8% LandfilledResidual Materials

Food Waste Eliminated§ BioHiTech digesters process food waste

on-site at the point of generation, are cost-effective, and environmentally sound.

§ Proprietary cloud-based technology in each digester provides powerful supply chain management data analytics in real-time to reduce food waste.

Mixed Waste Diverted§ HEBioT facility substantially reduces

waste logistics infrastructure.§ 40-50% of the mixed waste received by

the HEBioT facility is converted into an EPA approved renewable fuel (SRF).

§ Only 8% of total waste is landfilled.

42% Other WasteReduced or Converted

to SRF at BHTG HEBioT Facility

25% Food Waste

Digested On-site by

BHTG Digesters

25% RecycledOCC, Plastics, etc.

Traditional services provided by BHTG in

select markets

Definition of zero waste according to the Zero Waste International Alliance:

§ Any term that includes “zero” in it must achieve at least 90% diversion from landfills, incinerators, and the environment, and commit to a goal of reducing the amount of materials discarded, and any discards going to thermal processes as part of a continuous improvement system to zero.

The Answer: BioHiTech’s End-to-End Solution

Zero Waste is Possible!

Mixed WasteBig Box/Grocery/Retailer

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100% to Municipal Wastewater Treatment

Facility

97% to Landfill97%

3% to Composting

Cost of as much as $118.65 per ton

3%Cost of as much as $120.00 per ton

Cost as little as $40.00 per ton

Real-Time Transparency

LimitedVisibility

Cost Effectively Achieving Zero Waste – Our Food Waste Solution

Traditional Disposal Methods

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Tipping Fee $850 per truck

MechanicalPre-Screening

Biological Process Refinement and Sorting

Traditional Disposal Method

HEBioT TechnologyRecycled Metals

3% to 5%

Solid Recovered Fuel 40% to 50%

Inert Materials 8% to 10%

Weight Loss 30% to 35%

Residual for Landfill 15% to 20%

LANDFILL

Collection Vehicles

Aggregated (manual sorting)

ü Charges consistent tipping feesü High EBITDA margins

ü Produces an EPA recognized renewable fuelü Extends the useful life of existing landfills

HEBioT Benefits

Transfer Station

Tipping Fee $850 per truck

100%

Cost Effectively Achieving Zero Waste – Our HEBioT Technology Solution

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ü Evaluating sites in Philadelphia for Gold Medal feedstock.

ü Planning phase for additional sites in Mid-Atlantic region (1-2 facilities added per year).

BioHiTech Global has a 17.2% equity interest in Entsorga West Virginia, the first HEBioT facility in the U.S., scheduled to begin commissioning in 2018.

§ First Mechanical Biological Treatment facility in the U.S. to manufacture “engineered fuel” utilizing the HEBioT process.

§ Financed through $25 million Industrial Development Bond issuance by the West Virginia Economic Development Authority.

§ Contracts for input and off-take already in place for 10 years guarantees strong EBITDA margins.

Location of Facility Berkeley County Landfill Site, Berkeley, WVDesign Capacity 110,000 tons per yearWaste Type Mixed Municipal Solid Waste/C&DOperational Availability 8,000 hours per yearStockpiling Availability 3,500 tons in bio-stabilization area

300 tons in receiving area

Amount of Energy Produced Up to 50,000 tons per year Engineered Solid RecoveredFuel (SRF)

Materials Recovered Up to 50,000 tons per year of SRFUp to 4,000 tons per year of Metals

Residuals Landfilled Approximately 20,000 tons per year (20%)

Martinsburg, West Virginia, Under Construction

Our Mixed Municipal Waste Solution: HEBioT Facilities

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ü Commissioning West Virginia in 2018.

ü Acquired rights to property in New Windsor NY for planned 2019launch.

HEBioT Roadmap

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Digester Market Size

TargetAdoption Rate

Estimated Deployable Market

Recurring Annual Revenue Per

Unit(1)

Annual Potential Market

Eco-Safe Digester Market 750,000 15% 112,500 $10,200 $1.15BRevolution Digester Market 1,500,000 15% 225,000 $4,500 $1.01BTotal Market Estimate 2,250,000 337,500 $2.16B

Recurring Revenue Model for DigestersMulti-year leasing model creates dependable recurring revenue stream

Initial US Target Area Market Size Current Cost of

Disposal AnnuallyTarget Adoption

RatePotential Market

Unit NeedsAnnual Potential

Revenue

11 Northeast States + DC 41M tons per year $2.5B 20% 36 Facilities $500 - $600M

HEBioT Technology Potential Market

(1) The Company's current focus is on multi-unit placements with larger clients, accordingly, the majority of placed units receive a discount to list price. The monthly revenue per unit in this example is based on sales of that unit and other models to a lesser extent at an estimated average lease price..

Annual Potential Revenue

$2.75BBHTG Target Revenue Model

Multi-Billion Dollar Market Opportunities for BHTG Technologies

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§ Completed acquisition of first HEBioT™ renewable waste facility license from Entsorgafin S.P.A. for a combination of $6.1 million in cash and common Stock.

§ Partnered with Kinderhook Industries to acquire Gold Medal Services, a New Jersey based solid waste collection business servicing the Philadelphia and Southern NJ Markets (9.2% owned by BHTG and 90.8% owned by Kinderhook).

§ Completed a $1.7 million Series A Preferred Stock offering convertible into common stock at a fixed price of $5 per share.

§ Completed a $5 million non-convertible senior secured debt financing with Michaelson Capital Partners and an exchange of $4 million of CEO’s debt into preferred equity convertible at $4.75 per share.

§ Secured a new $1 million credit facility with Comerica Bank.

Combined transactions improve stockholders equity by more than $14 million

Recent Events – Transforming Balance Sheet to Fuel Growth

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Food Waste DisposalDigesters and Data Analytics

Traditional Waste Management

MSW ProcessingHEBioT Facilities

Gold Medal Potential Future

Acquisitions/Management Services Agreements

Distribution Platform for DigestersFeedstock for HEBioT Facilities

Direct Salesand

Distribution Network

Software Application Sales Company

OwnedFacilities

Fully IntegratedSustainable Waste Management

Driven by Technology

FutureStrategic

Partnership Facilities

Future Facility Licensing

The Roadmap for Success – Fully Integrated Sustainable Waste Management

Complete End-to-EndCustomer Solution

WVA

New Windsor

Partnerships with other

Waste Companies

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Frank E. Celli20+years of Waste

Industry experience. Founder of Interstate Waste Services which

was sold for over $200M in 2006

Bob Joyce30+years of Technology

and Engineering experience with

companies including Arthur D Little Inc.,

Sun Microsystems, and Versatile Systems

Bill Kratzer20+years of IT

experience designing software utilized by

companies including Comcast, GE Capital

and HSBC

Brian Essman30+years of Financial and Management experience with companies including Data Communiqué, Inc.,

and PricewaterhouseCoopers

Dennis Soriano40+years of experience in the Waste, Recycling and Concrete Industries for companies including Waste Management and Greenstar North America

Board of Directors: Frank E. Celli - James Chambers - Bob Graham - Douglas M. VanOort - Harriet Hentges - Anthony Fuller

Management Team

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Chief Executive Officer

Chief Operating Officer

Chief Technology Officer

Chief Financial Officer

Director of Business Development

Richard Galterio25+years of experience in Capital Markets an IR for companies including

Ascendant Partners, LLC, vFinance

Investments, and Commonwealth Associates, Inc.

Executive Vice President

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Thank YouBioHiTech Global

NASDAQ: BHTG

Corporate Office80 Red Schoolhouse Road Suite 101

Chestnut Ridge, NY 10977Tel: 845.262.1081

Additional OfficesHarrisburg, PALondon, U.K.

Contact InformationRichard Galterio

[email protected]

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Appendices

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HEBioT vs. Other Disposal Methods

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