ATEC* Biodigesters InternationalFebruary 2017

TheProblem- Social

2

Inefficientdailytasksforwomenplaceshugeburdenontheeconomicsituationofthehousehold

1.5days/monthspenton

collectingwood

3hours/dayspentonhouseholdchoresdueto

inefficientcooking

Bottledgascostsanaverage$274/year

Source: Shujog’s impact assessment interviews

Economic & time burden on households• The households in rural communities have to spendtime collecting wood in the forest, which is illegal andunsustainable

• More time also has to be spent on cleaning the potsand clearing the ashes from wood fuel

• Wood is also an inefficient medium for cooking, whichgenerates smokeand is harmful to the family

• Prices of wood have increased on an average of 10%per year over the last five years

Traditionalcookingmethodscreatehealth-relatedissueswithinfamilies

TheProblem- Environment

85%ofCambodianwoodconsumptionisusedfordomesticcooking.Themajorityofthiswoodcomesfromunsustainableillegal logging,translatingtosignificantpressureontheforestinCambodia.

3

Source: GERES, Harnessing Biomass Energy in Cambodia, 17 September 2015

Woodfuel ConsumptioninCambodia

Growingpressureonforestmountsasthereisnoeffectivesolutionforcleancookingforhouseholds,leadingtodepletionofforest.

DomesticCooking,85%

BrickManufacturing,

4%

GarmentFactories,7%

OtherCommercialUses,4%

Traditionalcookingmethodsalsotranslatesintoenvironmentaldegradation

TheSolution

• A biodigester is a simple system that collects and treats manure,human, kitchen and green waste and effectively converts this intothe valuable resources of biogas and organic fertiliser for future use.

• ATEC biodigester is the first biodigester globally that can be installedin high groundwater and flooded areas – conditions which effects anestimated 89% of the target market in Cambodia as well as manyother developing countries.

• Each ATEC biodigester is sold with a twin biogas cookstove and ricecooker.

• Setup is marketed as an aspirational product as an upgrade to theirkitchen, which is a critical sales point to its target customers

4

Pioneeringbiodigester systemthatprovidesbothbiogasandfertiliser

VisionandMission

5

TheATECVisionFamiliestohaveaccesstoaviablemarketof

appropriate,sustainabletechnologiesthatimprovetheirlivesandincreasesopportunity

TheATECMissionTobea globalleaderinhouseholdbiodigesters

TheProduct

ATEC* has established a new rotor-moulded design that uses export-qualityUV-treated LLDPE plastic with an expected lifespan of 25 years. Manufacturedby H2O Co Ltd in PhnomPenh

Key featuresof the product include:• Renewable biogas forall cooking needs• Renewable organic fertiliser for crops and vegetables, increasing yield by 5-

30%and cut fertilizer expenditure in half• A smoke-free cooking environment, estimated to kill over 14,000

Cambodians per year.• Dimension of 2m high by 1.5mwide, total volume 3.25m3• Flood resistant up to 1.8metres, no cracking in high groundwater• Can be movedand/oron-sold byhousehold as an asset• Estimated 3 tons of carbon abated per unit per year• Up to $6,500 in savings to the user over product lifetime

6

TheBiodigestersystemhasevolvedtomeetcustomerrequirements

In a typical Cambodian rural farming family scenario with 2 to 3 livestock, aBiodigester system can provide enough biogas for all daily cooking needs, aswell as high quality organic fertiliser for1.5 hectare of rice.

Efficiency&SavingsofCookingFuel

7

EFFICIEN

CY LPG

Butane

Wood

ATEC*

HighcostlongtermUnsafetouse

HighcostlongtermLimitedavailability

Minimaldirectcosttocollectingwoodfuel

Pressureonforests&environment

SignificanttimespenttochopandgatherwoodfuelLoggingisoutlawedinCambodia

Renewable&freegaseverydayOrganicfertiliserCostsavingsofupto$6Kproductlifetime

Economicpressureonhouseholds

Highrecurringexpenditureonpurchasinggas

SAVINGS

ATECbiodigesterishighlyefficientandprovidessignificantcostsavingsforcustomers

TypicalHouseholds

Income: ATEC targets farming households who aspire for more modern cooking facilities and have thefinancial capacity to purchase a biodigester, either directly or through monthly installments. Thesehouseholds earn an average of US$3-10 per day and have enough income or assets to be economicresilient, but are not ‘wealthy’ farmerswho can easily access LPG forcooking.

8

Land (Crops): ATEC currently focuses on retailing its biodigesters to small-scale farming households inCambodia. Rural households make up 85% of Cambodian households, with the majority of thesefocusedeither fully or partially on farming.

Livestock: Typical household size for ATEC end-users is approximately 5 people. Each householdusually owns 2-3 livestock (such as cows and pigs) and approximately 1.5 hectare of land that is mainlyused for rice cultivation. Some households also grow vegetables and fruits both for sale and for theirown consumption. Family members often earn additional income by working in garment factories orother manufacturing industries.

TotalCustomers=1,050,000

AspirationalruralfarminghouseholdsareATEC’stargetedcustomers

Identification

Validation

Assessment

Sale

9

Installation

Education

Service(3months)

Service(2years)

POST-SALES

Pricing• Upfrontcashpaymentof$550-650inclusiveoftax(provincedependent)• MicrofinanceinpartnershipwithaMicrofinanceInstitutionatworkingoutat$30/monthfor2years.• Retailersofferingin-housefinanceforproducts,similar ratestoMFIsataround$30/monthfor2years.• Repaymentscanbeaccelerated.

PRE-SALES

SalesStrategy&TouchPointsSignificanttouchpointsandeffortgotowardsensuringcustomersatisfaction

ForecastedDistributorsUnitSales

10

Households inCambodia(byprovince)

55 55 30 30150 150 85 85 30 30

600 600

350 350175 175

1400 1400

1200 1200

800 800

SiemReap KampongThom

PreyVeng SveyRieng Battambang KampongSpeu

FY17 FY18 FY19 FY20

30

135 135

60 6040

400 400

150 150 135

75 75

Takeo KampongCham

BanteayMeanchey

Kampot KampongChnnang

Pursat Kratie

ATECforecasteddistributorsunitsalesscalingupto13provinces

Partnerships

11

ATEChasstrongpartnershipsacrosscriticalareasofoperations

Technical Sales SupplyChain

Progress&Milestones

1212

Earlystagebiodigester prototypesdevelopedincollaborationwithNGOpartners

ATEC’sbiodigesterunitannouncedtheinauguralwinneroftheGoogleImpactChallenge.

2011-2014

ConductedinitialmarketanalysisandsupplychaindevelopmentinCambodia

2016ATECBiodigestersestablishedasasocialenterpriseinCambodia,withanewpatenteddesignmanufacturedinPhnomPenh.

250unitssoldbyFeb2017,average40units/month

2014

2015

Strongfoundationalprogressachieved

2017

Targetof4,000unitsperyear(330units/month)2019

Scalingup

13

Indonesia– 250mpopulation• 16kunitsinstalledpresently• Alreadysuppliedsmallscale

salestoRumah Energi.

Myanmar– 53.3mpopulationNocurrentbiodigester supplierpresently.

Nepal– 27.8mpopulation• 400kunitsinstalledpresently,but

estimated30%ofunitsaredamaged• Installing45kunits/year

India– 1.25bpopulationTheonlymarketwithextensiveproductdevelopment,with4.5munitsinstalledtodate.

Vietnam– 90mpopulation• 1munitsinstalledpresently• Installing200kunits/year

CambodiahastheopportunitytobethecountrythatshowstherestoftheworldthepotentialATECBiodigestershaveforsustainabledevelopment

InternationalSalesofBiodigestersTherearemanysimilarmarketsthatfacethesameconstraintsasCambodiawherehouseholdsarespendingasignificantamountoftimeandexpensesonnon-renewableenergysourcesforcooking.Additionally,themarketforhigher-margineco-lifestylehouseholdsystemsindevelopedcountriesremainslargelyuntapped.

ATEC biodigesters generate average time savings of 3 hours per day (cooking) and 19

days per year (fuel collection) for each farming household. This additional time is typically used by women for childcare and by men to engage in additional income-generating activities (mainly farming).

ATEC biodigesters enable average annual cost savings of USD 213 per farming household

from avoided expenditure on fuel and fertilizer. These cost savings can be used to upgrade housing conditions and invest in education, healthcare, improved nutrition,

loan repayment and other activities.

ATEC biodigesters reduce exposure of to indoor air pollution by 80%,

enabling members of the households (especially women) to enjoy better

health leading to increased productivity and well-being.

Each farming household experiences an average annual income increase of USD 207 from additional time for

income-generating activities.

Each ATEC biodigester reduces 3 tons of CO2 emissions per year.

Increased crop yield from use of bio-slurry from ATEC biodigesters results

in an average annual income increase of USD 101 per household.

Impactoutcomes

ATECSROISummary

15

Company Name: ATECBiodigesters InternationalStatus in Cambodia: Foreign Branch

Year of Registration in Cambodia: 2016Country of Operation: Cambodia

Impact Assessment Conducted by: ShujogImpact Assessment Date: December 2016

MISSIONTo provide sustainable clean energy and livelihood options to rural faming

households.

IMPACT SUMMARYSocial Return on Investment for US$887,000 capital raise is ‘3.69’ (US$3.69

of impact created for every US$1 raised).

ATEC achieves six overarching outcomes:

1. Reduced Exposure to Indoor Air PollutionStakeholder: Farming Household (especially women)

2. Increased Cost Savings (Fertilizers)Stakeholder: Farming Household

3. Increased Cost Savings (Fuel)Stakeholder: Farming Household

4. Increased ProductivityStakeholder: Farming Household

5. Increased Farm ProductivityStakeholder: Farming Household

6. Reduced Carbon EmissionsStakeholder: Environment

ATECgeneratessixpositiveoutcomes,generatingaSROIof3.69