GloSho'14: LG Nano H20 - Jeff Green and Jim McDermott

1. Extracting Value from Universities & National Labs:
The NanoH2O Case History
GloSho ‘14: LACI Cleantech Global Showcase
October 7, 2014

2. First RO Membrane Innovation in 25 Years
 50-100% more permeable than existing polymer technology
 Improves best-in-class salt rejection by 25%
 Drop-in replacement for existing membranes
 16 Patents / 27 Applications in 11 Countries

3. Nanoscale Improvements, Large-Scale Value
Palmachim, Israel
58 PSI Less Pressure
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La Chimba, Chile
17% More Water
Santa Barbara, Curaçao
29% Fewer Membranes

4. Less Energy for Smaller Plants
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La Chimba, Chile
11% Less Feed Pressure
Marriott St. Kitts
20% Less Feed Pressure
Cayman Brac
28% Less Feed Pressure

5. Introduction to LG NanoH2O
Mission: Lower cost of desalination by leveraging nanotechnology to advance
reverse osmosis (RO) membrane performance
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6. RO Membranes: A Growing Market
Annual RO Membrane Module Revenue (2012 – 2018)
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> $2 Billion
Estimated Market Share of
Top Industry Players
Dow Filmtec 33%
Toray 33%
Hydranautics
(Nitto Denko)
25%
Source: GWI Q2 2013 Market Projections; LG NanoH2O

7. China to be World’s Largest RO Market
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• 20% world’s population with 6% of
freshwater supply; ~50% polluted
• China membrane market projected
to grow 20% / yr for the next 10
years
• 16% increase in desalination
capacity in 2013
• Current 5-year plan:
• 70% local content for desalination
• 3X increase in SWRO capacity
• 20% wastewater reuse by 2020
Source: The Freedonia Group, Inc.

8. Rapid Growth in 3 Years:
300+ Installations, 40 Countries, >300,000 m3/day
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NanoH2O Direct Sales Force
NanoH2O Distributors & Agents
QuantumFlux Installations

9. LG NanoH2O – A Summary of Strengths
 Best-in-class RO Membrane Technology
 Broad and Well-Protected IP
 Deep Team with Extensive Water / Desalination Experience
 Strong Brand with Tier 1 Customer References
 Thorough Understanding of RO Membrane Manufacturing
 Global R&D and Manufacturing Resources for Advanced Chemicals /
Polymers and Thin-Film Coatings
 LG Chem: 50% of business in China

10. Thank You
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