Exhaust Gas Purification Systems are required to be retrofitted for all open fire combustion systems (fireplaces) under German law beginning in 2015. The Company has developed a patented system for use by commercial and residential fireplaces and ovens.
Investment: €600k, Venture Capital
Location: Germany


Patented Exhaust Gas Purification System for Fireplaces with Highest Cleaning Capacity in the Market
++ Update as of 12/03/2014: Closing of outline sales agreement for Eastern Germany; Request for OEM agreement from European player being in negotiation; Already generating first revenues! ++

Legal Form: German GmbH
Date of Incorporation: active in the industry since 2007, R & D; 2013: completion of product, market entry, conversion into GmbH
Number of Employees: 7

Product / USPs:
1.) According to German Law (Bundesimmionsschutz-Verordung; BlmSchV) all open fire combustion systems are under obligation to be retrofitted from 01/ 01/2015 on.
2.) Construction of an exhaust gas purification system for stable operation, longevity and high removal efficiency during combustion.
3.) Reduction or elimination of CO (carbon monoxide); CO2 (carbon dioxide); NOx (nitrogen oxides), PM (particulate matter), CnHM (hydrocarbon emissions).
4.) Threshold value for particulate matter in Germany 40 mg/Nm³ from 2014 on.
5.) Purification system of our client has been tested by a renowned German test laboratory, and the determined limit value for particulate emission is 13mg / Nm³.
6.) Other purification systems available in the market are more expensive to buy and with higher values of particulate emission.
7.) Technology protected by patent and utility model.
8.) According to German law, every fire combustion system installed until March 2010 must be converted by the year 2024.

Total Market Volume:
1.) Estimation of total market volume: 100 Mio. Euros p.a.
2.) In Germany approximately 25 Mio. households have a stove or a similar fire combustion system.

Own Market Share:
Targeted marktet share of 5% within the Germany, Austria, Switzerland-region (equivalent to approximately 17,000 stoves).

Target Group:
1.) Commercial and residential users of fireplaces & ovens.
2.) Chimney Sweeps (examination of the emission standards).
3.) Distributive traders of furnaces & ovens.

Scalability of the Business Model:
1.) Based on the current know-how and product range possibility of developing retrofit solutions for further fireplaces, and pellet heating systems to be retrofitted.
2.) Expansion of the business model to other foreign markets in the wake of a possible European harmonization of immission laws.

Key Figures: 2015 2016 2017 2018 2019
Revenues T€ (e) 485 2.523 6.671 11.596 13.707
EBITDA T€ (e) -358 285 1.420 2.609 3.143
EBITDA-Margin(%) -73,8 11,3 21,3 22,5 22,9
EBIT T€ (e) -373 262 1.374 2.550 3.089
EBIT-Margin (%) -76,9 10,4 20,6 22,0 22,5
EBT T€ (e) -439 178 1.290 2.466 3.077

(e) = estimated

Funding:
1.) Capital Requirements: 600.000 €.
2.) Equity stake: Information upon request.
3.) Enterprise value according to DCF: Information upon request.
4.) Type of participation: direct investment with upside potential in case of a sale.

Use of Funds:
1.) Stockpiling
2.) Sampling
3.) Technical Equipment
4.) Strengthening of sales team

This information is directed solely to professional investors, being able to provide us with their full identity, proof of commercial registration (if legal entity) and – upon request – a NDA-agreement. We expect our business partners to act like decent merchants.

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