Borneo Waste Industries Sdn Bhd

www.borneowasteindustries.com

Borneo Waste Industries Sdn Bhd (BWI) is a waste management service provider based in Sabah, Malaysia.

In April 2018, BWI executed a 30-year concession agreement to develop and operate the Integrated Waste Management Processing Plant (IWMPP) at the Kayu Madang Sanitary Landfill (KMSL), Sabah.
BWI aims to recycle up to 90% of waste from the KMSL by processing up to 800 tonnes per day through environmentally sustainable technologies
The ECF campaign is an opportunity to realise the value of this investment (or a portion thereof) through an offer for sale on a pro rata basis in a private placement exercise which is anticipated to occur within 12 months following the ECF campaign.
The maximum target to be raised of RM2,999,986 for 6.7% equity in the company is based on a company valuation of RM42,023,516 for this ECF exercise.
The company valuation based on a net present value of projected cashflows over the concession period is approximately RM100 million which values the 6.7% equity stake offered to ECF investors at RM6.7 million.
In the event the offer for sale in the private private placement exercise does not materialise for whatever reason, investors will have the opportunity to participate in dividends which are expected to be declared in year 3 (or later) onwards of operations. The indicative return on investment based on a project free cash flow to the company is approximately 8 years. The project internal rate of return is approximately 29% based on company financial projections.

Campaign Closed RM 649,774 raised

144% of target	0 days left
Investors	15
Min Target	RM 450,034
Max Target	RM 2,999,986

Introduction

The aspirations of the project are threefold: economic, environmental and social sustainability.

BWI aims to maximise the recovery of incoming waste into the landfill, to enhance the market for intermediary materials and set a precedent for economically viable waste management projects in Sabah. Other aspirations include prolonging the lifespan of the KMSL as well as managing leachate generation in a sustainable manner.

Project Objectives

Divert up to 90% of waste from disposal to the KMSL by processing up to 800 tonnes per day which includes electronic waste (e-waste) and waste from domestic, commercial and industrial sources.
Sort the waste and subsequently process these waste with an environmentally sustainable technology to produce useful intermediary products for various industries.
Maximise the lifespan of the KMSL and reduce the generation of landfill gases that are harmful to the environment.

What We Do

The Challenge

Current KMSL conditions have created a negative social impact in the form of illegal scavenging activities, foul odour and rodent infestation. BWI will transform the KMSL into a recycling centre, with the aim of alleviating the negative social impacts on the local communities in Sabah.

Our Solution

BWI aims to design, build, finance and operate an Integrated Waste Management Processing Plant (IWMPP) around the theme of environmental sustainability by implementing the following:

Diversion of disposal of waste from landfill cells to preserve landfill space, through recycling and recovery activities.
Ensure adequate treatment of organic waste, and hence avoid hygienic hazards caused by organic waste degradation.
Reduce carbon footprint of waste disposal by eliminating methane emission, reducing wastewater generation, and promoting use of recyclables to substitute virgin materials.
Application of Mechanical Biological Treatment (MBT) system as it utilises minimal energy consumption.
Application of bio-based treatment in the MBT system to eliminate the use of chemicals and other synthetic materials.

The IWMPP will sort the waste at KMSL and subsequently process these waste with environmentally sustainable technologies to produce useful intermediary products for various industries.

Long-term employment opportunities will be created throughout the 30-year lifespan of the project.

Why Are We Different

Concession

30-year Concession Agreement

On 16th April 2018, BWI executed a concession agreement with the Dewan Bandaraya Kota Kinabalu (Kota Kinabalu City Hall) to operate and process up to 800 tonnes of waste at the KMSL daily.

Tax Incentives

At least 5 years tax exemption and 2% interest rebate

BWI is able to operate with lower financing costs, being eligible for various benefits and incentives such as Pioneer Tax Status, which comprises income tax exemption of at least 70% for a minimum period of 5 years and participation in the Green Technology Financing Scheme, which enjoys a 2% interest rate rebate.

Electricity Savings

Saving over RM600,000 p.a. in electricity cost

Upon the installation of its rooftop solar panels, BWI will participate in the Solar Net Energy Metering Programme, contributing not only to a greener planet but also enhancing profit margins.

Recycled Plastics

Recycle waste equivalent to >800,000 plastic bottles daily

BWI effectively prevents over 800,000 plastic bottles equivalent of plastic waste from being disposed at the KMSL daily and generates a sustainable source of plastic products.

Our Revenue Model

With its own manufacturing facilities and established business partnerships, BWI will be producing the following products:

01

RECOVERED PLASTICS

Products such as High Density Polyethylene (HDPE), Polypropylene (PP) and Low Density Polyethylene (LDPE) are sold as pellets, whereas Polyethylene Terephthalate (PET) plastics are sold as flakes.

02

ORGANIC FERTILISER

Organic fertiliser is rich in essential plant nutrients, with a nitrogen, phosphorus and potassium concentration that is greater than 9%.

03

RDF PELLETS

Refuse Derived Fuel (RDF) is a renewable and cheaper substitute for coal, commonly used as fuel in energy intensive processes such as brick or cement manufacturing.

04

OTHER RECYCLABLES

Comprises of recyclable papers and metals that do not undergo further downstream processing at IWMPP and are immediately sold to other downstream manufacturers.

05

BOTTLED CNG

Biogas generated from organic fractions of Municipal Solid Waste (MSW) is compressed and bottled as Compressed Natural Gas (CNG) that can be sold for commercial and industrial use.

06

E-WASTE COMPONENTS

Extracted e-waste components such as circuit boards and chips will be sold to other downstream players for further recycling.

07

WASTE-TO-ENERGY (WTE) POWER (OPTION)

RDF pellets are fed into a gasification plant to produce power that is sold to the grid.

The Sale of:

Product		Price Per Tonne
1. Recovered Plastics	PET Flakes	RM 1,300
	PP Pellets/HDPE Flakes	RM 1,344
	LDPE Pellets	RM 432
2. Organic Fertiliser		RM 1,100
3. RDF Pellets		RM 175
4. Other Recyclables	Newspaper	RM 380
	Cardboard	RM 330
	Ferrous Metal	RM 1,500
	Aluminium	RM 4,200
5. Bottled CNG		RM 2,000
6. E-Waste Components		RM 2,000
7. WTE Power (Option)		Based on applicable FIT rates

Our Market Opportunity

We will be selling to long term customers globally (recyclers, power purchasers, horticulturists, etc) or through the open market in Malaysia & Asia.

Sabah’s population is projected to grow at a compounded annual growth rate (CAGR) of 1.7% to reach 5.6 mil by 2033.

As Sabah’s population gradually concentrates in urban regions surrounding Kota Kinabalu, greater amounts of waste are expected to be delivered to the KMSL.

Sabah is projected to generate 3,867 tonnes of Municipal Solid Waste (MSW) per day by 2020, demonstrating a CAGR of 5.3%.

The trajectory of Sabah’s growth in terms of population and spending power would induce greater amount of consumption of discretionary and non-discretionary goods, in turn creating larger amount of waste.

Our Strategy

Implementation of the Project

The overall implementation of the project is divided into two main phases as detailed below:

MANUAL SORTING OPERATIONS

Oct '18

Commenced manual sorting operations at KMSL for period of 24 months. Cash flows generated will be channeled to fund initial working capital.

BASE FACILITIES

Material recovery facility
Anaerobic digestion plant
Recovered plastics plant
Bottled CNG plant
E-waste recycling centre
RDF pellet plant

Jul '20

Construction expected to commence

Aug '21

Construction expected to be complete

Sep '21

Expected to begin operating

WTE PLANT (OPTION)

Installation of gasification plant

Jan '22

Construction expeted to commence

Jan '24

Expected to start generating power for sale to the grid

ORGANIC FERTILISER

Organic fertiliser plant

Jul '22

Construction expected to commence

Mar '23

Construction expected to be complete

Apr '23

Expected to begin operating

Oct '23

Doubling production capacity with additional 37 TPD manufacturing line

ROOFTOP SOLAR

Installation of rooftop solar panels

Nov '23

Construction expected to begin

May '24

Expected to start generating solar energy for electricity requirements

The IWMPP will be developed over a period of 4 years, from 2020 to 2024

IWMPP Phase 1 IWMPP Phase 2

Our Achievements

BWI executed a 30-year concession agreement with DBKK to develop and operate the IWMPP at the KMSL from April 2018 to April 2048.

Projected Financials

Projected Financial Performance (RM, mil)

EBITDA Revenue

Revenue CAGR: approx. 4.9%

EBITDA CAGR: approx. 5.9%

Average GP Margin: approx. 64.3%

Average PAT Margin: approx. 38.8%

IWMPP Cash Flow Over 30-Year Concession (RM, mil)

IWMPP Cash Flow

Revenue

Net Operating Cash Flow

Free Cash Flow to Shareholders

Base Facilities is projected to be BWI’s largest revenue contributor over the concession period. In contrast, the organic fertiliser plant will be the largest contributor of free cash flows to BWI’s shareholders.

Indicative Usage of Funds

BWI Use of Funds

Site Preparation Costs

Pre-Operating Expenses, Working Capital & Repayments

IWMPP’s Professional Fees

The Team

Raven Sockanathan

Founder & CEO

Ramkumar

Technical Director

Chandrasekhar Arun

Project Director

Sitharthan Maran

Administrative & Finance Manager

Hj Idris Bin Ali

Corporate Relations Director

Christopher B. Charles

Financial Planner

Term Sheet

Issuer: Borneo Waste Industries Sdn Bhd (1024294-T), a private limited company incorporated in Malaysia

Type of Equity: Ordinary Shares (“Shares”)

Fund Raising Period: 90 days

Pre Money Valuation: RM42,023,516

Minimum Fundraising Target: RM 450,034

Maximum Fundraising Target: RM 2,999,986

Price per Share: RM 38.00

Minimum Equity Offered: 1.1%

Maximum Equity Offered: 6.7%

Minimum Shares Offered: 11,843

Maximum Shares Offered: 78,947

Minimum Investment Amount: RM 1,900

Rewards

Impact on Shareholding Structure Upon Completion of the Offering

Investor Eligibility: Retail, Angel, Sophisticated, and/or Institutional Investors, subject to the applicable investment limits prescribed under the Securities Commission’s Guidelines on Recognised Markets.

Pre Emptive Rights

Type of Shares

Information: Issuer to provide additional information upon request.

Closing Period: 14 working days after the end of the Fundraising Period.

Use of Proceeds: Funds will be used for pre-operating expenses, working capital, repayments, professional fees and site preparation costs.

Subscription Procedure: An Investment Agreement (with an Annexed Partnership Deed) for the subscription of ordinary shares and subject to review if required or necessary, the procedure may be amended by the Issuer and the ECF Platform.

Disclaimer

The information, calculations and remarks expressed on this term sheet or on any other part of the platform are based on information provided, disclosed and presented by Borneo Waste Industries Sdn Bhd to Ata Plus Sdn Bhd, either in part or in whole. Ata Plus disclaims responsibility for the accuracy, completeness and/or validity of these information, and hence will not be held liable for any inaccurate, inappropriate or incomplete information presented on this term sheet or on any other part of the platform subject to the following:

The financial information listed on the deal page is provided by the Issuer; which includes the financial forecasts and projections, the capitalisation table, the term sheet, and management accounts.

The financial forecasts and projections have been prepared by the issuer based on information that may not have been reviewed and certified by an independent certified accountant for its reasonableness.

THE ISSUER agrees that; all information concerning the product, business and the assets of THE ISSUER that have been furnished to Ata Plus Sdn Bhd for the purpose of the equity crowdfunding campaign is true, complete, and accurate in all material respects and is not misleading or deceptive whether by inclusion or omission.

Should the Investor require more information, they can do so by contacting Borneo Waste Industries Sdn Bhd directly at [email protected] or by clicking on the ‘CONTACT’ button on the Deals Page.

Disclosure: This issuer is referred by a 3rd party which is . Ata Plus is not associated or related to the issuer and the referral party.

Disclaimer by Securities Commission

(i) No shares will be alotted or issued based on this document after six months from the closing of the offer period

(ii) This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007

(iii) This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.

Issuer	Borneo Waste Industries Sdn Bhd (1024294-T)
Type of Equity	Ordinary Shares (“Shares”)
Fund Raising Period	90 days
Pre Money Valuation	RM42,023,516
Minimum Fundraising Target	RM 450,034
Maximum Fundraising Target	RM 2,999,986
Price per Share	RM 38.00
Minimum Equity Offered	1.1%
Maximum Equity Offered	6.7%
Minimum Shares Offered	11,843
Maximum Shares Offered	78,947
Minimum Investment Amount	RM 1,900
Rewards
Investor Eligibility	Retail, Angel, Sophisticated, and/or Institutional Investors, subject to the applicable investment limits prescribed under the Securities Commission’s Guidelines on Recognised Markets.
Information	Issuer to provide additional information upon request.
Closing Period	14 working days after the end of the Fundraising Period.
Use of Proceeds	Funds will be used for pre-operating expenses, working capital, repayments, professional fees and site preparation costs.
Subscription Procedure	An Investment Agreement (with an Annexed Partnership Deed) for the subscription of ordinary shares and subject to review if required or necessary, the procedure may be amended by the Issuer and the ECF Platform.
Disclaimer	The information, calculations and remarks expressed on this term sheet or on any other part of the platform are based on information provided, disclosed and presented by Borneo Waste Industries Sdn Bhd to Ata Plus Sdn Bhd, either in part or in whole. Ata Plus disclaims responsibility for the accuracy, completeness and/or validity of these information, and hence will not be held liable for any inaccurate, inappropriate or incomplete information presented on this term sheet or on any other part of the platform subject to the following: The financial information listed on the deal page is provided by the Issuer; which includes the financial forecasts and projections, the capitalisation table, the term sheet, and management accounts. The financial forecasts and projections have been prepared by the issuer based on information that may not have been reviewed and certified by an independent certified accountant for its reasonableness. THE ISSUER agrees that; all information concerning the product, business and the assets of THE ISSUER that have been furnished to Ata Plus Sdn Bhd for the purpose of the equity crowdfunding campaign is true, complete, and accurate in all material respects and is not misleading or deceptive whether by inclusion or omission. Should the Investor require more information, they can do so by contacting Borneo Waste Industries Sdn Bhd directly at [email protected] or by clicking on the ‘CONTACT’ button on the Deals Page.
Disclaimer by Securities Commission	(i) No shares will be alotted or issued based on this document after six months from the closing of the offer period (ii) This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007 (iii) This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.

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