Alternative Waste Technologies

2

Market Trends in Nairobi, Kenya 600M people in sub-Saharan Africa rely on dirty fuels (firewood, charcoal and kerosene) for cooking

At least 14,300 Kenyans die

yearly from health-related

complications as a result of

indoor air pollution

85% - Informal household

settlements earn between

$3 – 5 USD per day, at least

50% is spent on cooking fuel

Source: NY Times

3

Market Sizing in Nairobi, Kenya The demand for traditional charcoal is driven by social, environmental and economic elements

The current Nairobi demand of

charcoal stands at 2.4M

Tonnes annually

135,000ha of fast-maturing

tree species needed to meet

demand (Deforestation)

Population Pressure: Nairobi

has a population of 6 Million

People = 985,016 Households

60% of the population lives in

informal settlements –

591,010 Households

Environmental Implications

Urbanization: A 1% rise in

urbanization can increase

charcoal consumption by 14%

Nairobi population grows

annually at a rate of 4.15%

due to urban migration

82% charcoal consumption in

urban areas

Social Demand Drivers

The charcoal market is

estimated to be generating an

annual market value of over

Ksh. 32 billion (US$427m).

The industry reportedly

employs almost 1 million

people on a part and full-time

basis across the value chain

Informal household

settlements earning between

$3 – 5 USD per day, almost

50% of their daily income is

spent on cooking fuel

Economic Drivers

4

Unique opportunity to invest in an innovative renewable energy social enterprise 1

Steady stream of recurring revenue with a strong business proposition 2

Addressing environmental issues by providing a sustainable energy source 3

Planned road map towards an asset-light franchise owner 4

Platform to create jobs and benefit societies by driving social good 5

Key Investment Highlight Sustainable business model with a social and environmental impact

5

Introducing AWT AWT produces environmentally-friendly briquettes that are affordable for the masses in Kenya

Outcome:

Affordable, healthy and eco-

friendly agro-waste charcoal

alternatives across Kenya.

Clean biomass briquettes to

mitigate against climate

change and deforestation.

Vision:

To be the preferred supplier

of affordable and quality

Biomass Briquettes in Sub-

Saharan Africa

What We Do:

Agricultural waste can be

turned into a completely

environment-friendly source

of energy through briquetting

1

2

6

Current Business Strategy AWT current growth strategy have led to a 30% CAGR from 2017-2018

Our current growth for 2017-

2018

Proven Business

Model

124,389

161,706

62,195

80,853

37,449 44,322

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2017 2018

Briquettes Sold (Kg) Total Revenue ($) Gross Profit ($)

+30.0%

Raw Material:

Rice husks -

Mwea Rice

Scheme

Charcoal dust -

Informal

settlements

Starch Powder

from agricultural

farmers

Sales

Agents:

Out of

School

Youths/

Youths at

risk

Model:

MPESA

Pay- go Model

Bulk discounting

Our Functional Structure

• 2017 to 2018: Organic growth (30%) under AWT,

focusing solely on Lang’ata sub-county with 35,714

Households.

• 2018: Supplying to 714 regular households in Kibera

Slums

Operations

Finance

Marketing

AWT

Kenya

7

Value Proposition Affordable | Waste-free | Top quality

Consumers Society Value creation

Summary AWT

Quality

Consistent and burn longer

Preference to quality

Affordable price

AWT’s Price:

Ksh 50/KG

Competitor's Price:

Ksh 100/KG

Pro-Environment

Agricultural Wastes

Little to no residue

Consistent quality

Consistent Heat Burn longer

Value proposition

8

Competitive Landscape AWT is positioned to produce low price and healthier briquettes

Unique Features:

✔High energy content

✔Low price

✔High heat intensity

✔Longer burning time

✔Easily extinguishable

✔Lower levels of smoke

production

Non-

Healthier

Briquettes

Healthier

Briquettes

High Price

Low Price

Current Business Model AWT adopts a dual market strategy approach through a B2C and B2B model

Market Niche: Informal

Settlements

Dual Market Strategy: While serving the B2C Household units, we get to maximize on the B2B clients (informal schools

and Street food vendors) at no extra additional cost (Same production and sales team) therefore generating more profit

for the business.

B2B

B2C

Individual Household Unit

Informal Schools Street Food Vendors

9

Sale of briquettes to franchisees

10

Current Business Model AWT operates a franchise model to complement its traditional business model

AWT’s Forecasted Financial Contributions

Career Progression within AWT

Franchisee Supervisor Manager Employee Trainee Screening

Option of employee buy-out for prospective franchisees

On-the-job training and career development Em

plo

ye

e P

ers

pe

ctive

A

WT

Pe

rsp

ective

Reduce AWT’s business stake

100%

Owned

Franchisee-

Owned

Selling

stakes

Selling briquettes to direct consumer

Note: Recruitment is in Partnership with Generation Enterprise (NGO)

Proposed Business Model AWT has plans to adopt an Ownership Business Model in the long run to drive business growth

• Thorough research, industry

partners etc, AWT establishes

business that can employ low-

skilled youth

• AWT recruits skilled

Entrepreneurs in Residence (EIR)

to manage the franchise business

and fellow employees (BOP

youths)

1 Business Concept Development

(AWT + EIR) • Fellows who complete all the in-

house training workshops to

satisfaction are eligible to

participate in the next interview

day for soon-to-be launched new

AWT business

3 Self-selection for AWT Businesses

• The business grows and hires more

employees (surfaced and screened based

on the in-house trainings), high performing

fellows increase responsibility

• All employees benefit from weekly training

workshops, feedback and personal growth

plans

• AWT facilitates funding of the venture as it

grows, either via AWT capital or partner

investments

5 Business Growth (AWT + EIR + Fellows)

• AWT through Generation

Enterprise holds regular day-

long training workshops on life

skills, business skills and

entrepreneurial mindset – 3

weeks

• 1-week apprenticeship in an

already established franchise

outlet

2 In-house Training Workshops

(AWT + Fellows) • AWT launches the business with the

EIR and screens and hires 10-20

BOP youths who will learn and earn

on the job

• The business is incorporated, with

AWT owning 100% equity at first,

but with a transparent growth plan

that stipulates ownership handover

after certain milestones

4 Business Launch (AWT + EIR + Fellows)

• Certain growth milestones are met (profitability,

number of jobs created, number of youths

developed and promoted etc)

• Eligible employees have the option of greater

ownership (e.g. buy equity in business through

payroll deductions)

• AWT reduces its shares to zero or close to

zero; may continue to monitor and advice for a

fee

6 Paths to Ownership (AWT + EIR + Fellows)

Path to ownership Growing the business Selection

11

12

Business Growth – First Strategy Increase Production of Biomass Briquettes

Previous Production – 350Kgs per day Current Production – 1000Kgs per Hour

Higher production enables AWT to aggressively expand its market reach

13

Business Growth – Second Strategy Increase Market Share in Nairobi County for upcoming 5 years

1. Lang’ata – 4 (10,714HH)

2. Westlands –3 (6,250 HH)

3. Starehe – 4 (5,109 HH)

4. Dagoretti –6 (12,146 HH)

5. Embakasi –3 (21,822HH)

6. Kamkunji – 3 (8,237 HH)

7. Makadara –3 (6,683 HH)

8. Kasarani – 6 (9,336 HH) Current Operations

Future Expansion

Distribution Outlets in 32 informal Settlements across 8 sub-counties: Total = 80,207 Households (HH)

14

Sales Strategy Increase Market Share in Nairobi County for upcoming 5 years

SALES PER FRANCHISE/ PER AGENT

1 Franchise Month 1 of establishment

Quantity 64,000

Agents 25

Quantity (kg)/ Agent 2,560

1 sales agent/kgs/month 2,560

No of days/month 24

Sales/day

106.67 2.2 bag per day

Note: Each franchise unit requires 25 agents due to the expansive geographies to

be covered to give each agent high potential for success.

15

Team AWT experienced team is equipped with local expertise and a variety of business acumen

Stella Sigana

CEO

Eric Angula

Marketing

Nyakeriga

Emmanuel

Partnerships and

Strategy

Nyamagesa Laban

Admin and Human

Resource

Moses Wakala

Agricultural

Engineer

Consultant

Henrie Mussa

Accounting and

Finance

Consultant

Management Team Brand Ambassadors Team

16

Fundraising AWT is raising USD$250,000 (Loan) financing to fund business expansion

12% Interest $6,488

USD – 2 Years

Improved distributio

n efficiency

by 35%

Improved production output by 96%

18 Distributio

n points

Additional market

segments: Camps

and Lodges

Return on Investment Uses of financing (USD$)(1)

(1) Breakdown of uses: Lease Facility include lease of GoDown Facility, Capex include purchase of carbonization machine, crusher and mixer and truck, Training include recruitment and training expenses, Working capital includes purchase of raw materials, Mgmt includes salary for COO, CMO, CFO and plant operation manager

17

Usage of Funds for Current & Future Milestones AWT will utilize the $50,000 funds raised to improve sales strategies, channels and outreach

62 81

1,173

3,183

5,194

7,204

9,215

5 5

50

0

10

20

30

40

50

60

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2017A 2018A 2019F 2020F 2021F 2022F 2023F

Revenue Generated Funding support

Funding support will supercharge

growth (USD’000) No. of employed sales agent

124 162 2,688

7,296

11,904

16,512

21,120

-

5,000

10,000

15,000

20,000

25,000

2017A 2018A 2019F 2020F 2021F 2022F 2023F

No. of tons of briquette sold (‘000

tonnes)

6 15

183

339

497 553

679

-

100

200

300

400

500

600

700

800

2017A 2018A 2019F 2020F 2021F 2022F 2023F

210 714

16,964

34,219

56,041

70,961 80,297

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2017A 2018A 2019F 2020F 2021F 2022F 2023F

No. of household reached

18

Key Business Metrics AWT is committed to delivering Social and Economic Impact through its business operations

900 Jobs

created

Directly

32

Distribution

units

80,207

Households

units

Cumulative

Lives

Impacted –

3,659,627

Increasing

household

economic

finances by

15%

Household

cooking

income

saved by up

to 50%

Delivering Social and Economic Impact

Thank you

19

Appendices

20

21

Appendix A: [Insert Process]

22

Appendix B: Rice Husks Carbonization

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Appendix C: Briquetting on Single phase extruder machine

24

Appendix D: Sun Drying of Biomass Briquettes

25

Appendix E: Packaging

26

Appendix F: Three Phase Commercial Briquetting Machine