Environmental Protection ･ Technology ･ Humanitarian CultureExtending Article’s Life by Bringing New Life to Plastic Wastes, andExtending Article’s Life by Bringing New Life to Plastic Wastes, and

Promoting Environmental EducationPromoting Environmental Education

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Dr. Ting HungDA.AI Technology Co. Ltd./Head of RD DepartmentNo. 63, 2F, Zhouzi St, Neihu Dist., Taipei City 11493

TEL: (886)2-2657-5245 # 1902FAX: (886)2-8751-3450EMAIL: Ting_hung@daait.com, Siewhui_chong@daait.com Website: www.daait.com, shop.daait.com

Our target: To achieve a sustainable zero-waste Cradle to Cradle (C2C) manufacturing closed-loop process.

Our ultimate goal: To encourage and inspire more businesses, organizations, industry leaders and the general public to join our efforts in cherishing and protecting our Mother Earth and giving back to society.

Our Green Mission

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Waste PET bottles

Fact: According to Taiwan EPA (2010), Taiwanese consume 4.5 billion PET bottles and 18 billion plastic bags each year !

Waste fabrics Waste plastic bags

Our green mission: DA.AI Technology, with the concept of ‘Coexisting with the Earth’, aims

to reduce the amount of these accumulated plastic wastes (PET

bottles and plastic bags), and use them as the raw materials in producing textile products and oil respectively.

most importantly, through telling the stories of our products, to educate people to be environmentally conscious.

to convey our concept of: It is not to encourage consumption, but to promote the importance of using alternatives, and cherishing things in our daily lives.

DA.AI Eco BrandMeaning ‘Great Love’ in Chinese

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Incinerated LandfilledDumped at seas

DA.AI Tech. serves as an educational platform promoting green livings, as well as an integrating platform combining the efforts from individuals and entrepreneurs to recycle and reuse the resources.

A) All DA.AI eco textile products have:High purity, are safe to use.No piece dyeing (original color of bottles/dope-dyed).Mostly 90-100% of recycled material content (50% as the min., and 100% as the goal).Production History Card – allows our customers to understand our green technology.QR Code – moving stories of our volunteers, thus inspiring

customers to apply recycling in daily lives.Thus DA.AI Brand is, eco, educational & humanitarian.

In 2010, the global bottled water consumption was about 237 billion L ≈ 6.85 million tons of waste non-degradable PET plastic!

(Ref.:Zenith International, 76 countries)

If landfilled = Emitting 0.27 million tons of CO2e; If incinerated = Emitting 8.49 million tons of CO2e.

However, if recycled and processed into chips for textiles = Saving 7.59 million tons of CO2e !!*As compared with using virgin materials

(Ref.: Calculated using WARM, USEPA)

B) Pyrolysis oil from waste plastic bags (upcycling):

Good quality Can be used to replace boiler fuel oil Potential to replace diesel fuel

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Eco Products and Stores

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Stores in Taiwan

7 DA.AI Eco Concept Stores47 DA.AI Service Booths (in Tzu Chi Jing Si

Halls, Tzu Chi Offices, Tzu Chi Hospitals) 50 Jingsi Book Stores (To sell DA.AI classic

eco products)

Stores Overseas

1 DA.AI Eco Concept Stores in China9 Jingsi Book Stores (To sell DA.AI classic

eco products in USA, China, Dominican Republic, Singapore, Malaysia, Indonesia, Australia, Hong Kong and Philippines)

Eco Products: Blankets, Garments, Bags, T-shirts, Coats, Scarves, Daily supplies

DA.AI’s Eco Products are all derived from recycled PET bottles, which are collected, treated and sorted by 76,000 volunteers in Taiwan.

Tzu Chi followers (about 4 millions), members and environmental protectors all over the world who recognize the concept and values of DA.AI, are our potential customers.

DA.AI has organized more than 280 presentations, exhibitions and events to educate and promote our environmental concepts and eco products.

E-Shop

http://shop.daait.com (Taiwan)http://www.taibaoo.com/shop/daait (China)KIOSK DA.AI APP (under construction)

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Our TechnologyTechnology 1 (mature): To use waste bottles as the raw materials for textile products

This technology is now in the mature stage, producing eco textile products and sustaining our company.Nearly 160 tons of PET bottles are recycled at the 5413 recycling stations in Taiwan, 76,000 volunteers each month.

Cutting into flakesDe-capping Removing bottle rings

Washing of flakes

GranulationYarnTextile productsChips from waste fabrics

Recycling of waste fabrics

Re-sorting waste bottles

Technology 2 (bench scale): To use waste plastic bags as the raw materials for oil productionIt is now in the experimental stage (bench scale, 20 kg/h).Nearly 2.8 million plastic bags are recycled at the 5413 recycling stations in Taiwan, 76,000 volunteers each month.

Re-sorting waste plastic bagsBreaking up (about 1 cm) Feeding ‘Plastic’ oilPyrolysis process

Cradle to Cradle (C2C) Closed-Loop Process

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Business to Customer

B2C

Physical channel

Semi-manufactured

productsProducts

• Eco-

concept stores• Servi

ce stations

Virtual channel

Bra

nd

• T

zu C

hi offices•

Corp

orate

• W

ebsites •

Kios

k AP

P

Tzu Chi Recycling StationsSupply Chains

Domestic and international exhibitions in 2012:• 38 oversea exhibitions• 9 domestic exhibitionsSeminars:• 183 presentations• 54 eco product promoting activitiesRunaway shows:• 2 large-scale runway shows• 10 small-scale runway showsCross-industry alliances:• 4 business alliancesMedia:• Quarterly Journals named “Green Bodhi”• Magazines, DVD• Photography• EDM marketing• Online marketingDA.AI Eco concept stores

Marketing and Sales Strategy

It cost approximately US$100 thousand dollars for promotion events in 2012.

Business to Business B2B

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Company Name items DA.AI

Taiwan's brand A Japan's brand B

Time to market 2008 2007 2003

Market share (%) 99 0.06 0.27

Market segmentation 100% recycled PET end products Functional recycled PET yarnFunctional recycled PET yarn and recycled PET textiles yarn

Marketing channel Eco brand supplier ODM ODM

Technology advantage

1. Controls the source and the quality of raw materials on its own, achieving more energy savings and carbon emission reduction through physical melting technology.2. High (90-100%) recycled polyester content increases the feasibility of re-processing of the waste PET textiles.

1. Uses chemical methods on the recycled PET bottles to achieve quality stability and functionality.2. Develops a wide range of applications from the functional yarn.

1. Uses chemical methods on the recycled PET bottles to achieve quality stability and functionality.2. Develops a wide range of applications from the functional yarn.

Controlling of key components

1. High purity of raw materials.2. Non piece-dyed as the goal.3. High (90-100%) recycled polyester content, with 50% as the min and 100% as the goal.

1.Has a wealth of production experience. 2.Produces a variety of functional recycled PET yarns.

1.Has a wealth of production experience. 2.Produces a variety of functional recycled PET yarns.

Quality advantage1. Obtains good quality of eco-friendly products through the control of raw materials.2. High yield rate.

Limited to the use of chemical methods to meet customer demands.

Limited to the use of chemical methods to meet customer demands.

The Marketof our textile products

Board of directors: Tzu Chi Foundation (http://tw.tzuchi.org/en/)

Director: Walter Huang – Also the President of Texma International Co. Ltd., AND a happy volunteer who helps tirelessly in international relief missions.

Executive director: James Lee – Also the Vice President of Kee Yeh Co., Ltd., AND a volunteer executive director at DA.AI Tech.

These groups of entrepreneur volunteers have their own business or career to manage, and at the same time are committed to Tzu Chi as volunteers. The main objectives of these entrepreneur volunteers are to combine both charity and

environmental protection. We also have a group of dedicated volunteers who recycle and re-sort wastes for

DA.AI to use as the raw materials for production. Currently we have 76,000 volunteers around Taiwan.

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Our Story & TeamVolunteers are the source of strength

for changing the world in the 21st century

2003Tzu Chi International Humanitarian Aid Association (TIHAA) was formed out of the compassion of Dharma Master Cheng Yen, the founder of Tzu Chi Foundation (the largest non-profit charity organization in Chinese-speaking world) in view of the massive destruction to the earth by human beings, which causes natural disasters. Master instructed her disciples to research and develop products which can be used in international relief missions.

2006 Looking at the adverse impact of non-biodegradable plastic bottles, the head of TIHAA, Walter Huang, started to gather vendors to set up assembly lines producing eco-friendly textile products using recycled plastic bottles.

2008 After Master’s approval, Walter Huang, James Lee, and three other entrepreneurs then established DA.AI Technology Co. Ltd., aiming to solve the environmental problem and promote environmental education.

Director, Walter Huang helping in international relief

mission

Executive Director, James Lee sharing

experience with young generation

DA.AI hopes to inspire more businesses, organizations, industry leaders and the general public to form a Cycle of LoveDA.AI hopes to inspire more businesses, organizations, industry leaders and the general public to form a Cycle of Love

DA.AI Tech. & business partnersDA.AI Tech. &

business partners

100% net proceeds donated to domestic/international relief

and charity

100% net proceeds donated to domestic/international relief

and charity

5,413 recycling stations76,000 volunteers

5,413 recycling stations76,000 volunteers

Type of company: Self-Sustaining Social EnterpriseName of brand: DA.AINumber of employees: 98Major products: Eco textile-related products (chips/pellets, yarns, fabrics, garments, bags etc.)

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Financials

Startup capital and projected revenue: In 2008, five entrepreneurs equally invested 91.6

million New Taiwan (NT) dollars (≈ US $3.1 million) in total, and founded DA.AI Technology, the first green, socially responsible enterprise in Taiwan, which contributes entirely to the society.

As seen in the figure, the revenue growth rate increased exponentially in the first few years since its establishment (2008-2012).

We project that in the next three years (2013-2015),

DA.AI’s revenue would be exponentially increased at a growth rate of 20-30%.

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5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015

Year

Rev

enu

e (m

illio

n U

S $

)

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Product

Production History Card

• Traces back to the sources of material• Allows users to understand the making process and production time

QR Code-Stories of EP Volunteers

Cradle to Cradle® closed-loop system

Development of new functions for eco-fabrics

Ventilation and moisture absorption

Cooling and heating

Good elasticity

84% energy savings, and 77% carbon emission reduction

Emphasis on sharing and environmental education

• More than 280 programs organized each year

Professional certifications and recognitions

• Recognitions with 13 certifications and 11 awards

Implementation of Corporate Social Responsibility

• Values corporate interest, the interests of employees, customers and shareholders• Cares for social and ecological interests

Sustainability

Allows users to • realize how small powers can be gathered to affect the Earth’s future• be inspired and apply recycling in daily livesOperation

Transformation of waste plastic bags

Technology

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International and Domestic Recognitions:International and Domestic Recognitions:Short-term strategy:

Enhancing our technologies: Improve the functionality of products. Further reduce carbon and plastic footprints.

Obtaining certification and authentication for our processes.Achieving an industrial scale of producing oil from waste plastic bags, in order to replace the use of fossil fuel.Providing more education and exchange programs for the general public.Forming an alliance with individuals, schools, businesses and industrial leaders for protecting the environment.

Long-term goal:Become a global role model in the environmental industry.

If we won the $50,000 Prize… First, we would invest in building a demo pyrolysis

unit for converting waste plastic bags into useful oil, for use in various industries in place of fossil fuel use.

Second, we would develop functional RE-PET chips to maximize the value of recycled resources.

Achievements and Timeline

Control Union GRS Recycled Material

TÜV Rheinland GroupRecycled Material

TÜV Rheinland GroupProduct Carbon

Footprint

Ministry of Economic Affairs (MOEA)

M.I.T. Green Product

EPATaiwan Green Mark

Taiwan Textile Research Institute

National-standard for textile products

Cradle to Cradle Products Innovation Institute (C2CPII)

Cradle to Cradle CertifiedCM Silver

TÜV Rheinland GroupProduct Water Footprint

Recycled 254 million PET bottles

Saved 4 million L of oil

Reduced 16 million kg of CO2-e

Saved 686 million L of water

DA.AI’s Resource Recovery Statistics 2009~2012