Arcis Exec Summary

Arcis Resources Corporation (ARCS.QB)
An integrated beneficial reuse & recycling company
www.arcisresourcescorp.com

Industry: Environmental/Energy COMPANY OVERVIEW
Offices: Alabama Arcis Resources Corporation (“Arcis”) (OTC: ARCS.QB) is changing the way in
Ohio which companies dispose of their hazardous waste, non-hazardous waste, oils
Florida and petroleum products and is leading the way for those companies to begin
Al Khobar, Saudi Arabia converting that waste from a liability and expense into a beneficial reuse product
and revenue stream. At its heart, Arcis Resources Corporation is an integrated
fluid recovery & beneficial reuse environmental company positioned to be the
OFFERING TERMS: dominant player in the $50B global beneficial re-use market. We deliver
beneficial reuse and recycling services through three interrelated divisions of the
Offering: $ 5MM company comprised of:
Structure: Convert. Debenture • Mobile Fluid Recovery (“MFR”) - Patented fluid recovery technology
Coupon: 12% APR services and product sales;
Term (mos): 36 • Arcis Energy (“AE”) - Beneficial reuse sales and marketing; and
Strike Price: $0.40 per share • Arcis Logistics & Distribution (“ALD”) - Logistics and distribution
Warrant Cover % : 25% services.

The core of the Company is our
CAPITAL TABLE (as of 3/23/12) Mobile Fluid Recovery Division
(MFR). Its’ patented fluid waste
Ticker: ARCS.QB recovery technology “spins” liquid
Authorized shares: 200,000,000 wastes out of industrial absorbent
Outstanding: 29,818,000 materials resulting in a 35% to 50%
Float: 6,515,000 expense reduction in absorbent
Beneficial Shareholders: 23,556,000 replacement, hazardous waste
disposal and regulatory costs.
Through its patented process, MFR has assisted automotive, oil and gas,
SELECT BLUE CHIP CUSTOMERS: semiconductor, plastic and other industries in eliminating hazardous waste
classification by removing “free liquids” from rags, wipes, booms and absorbents
directly at the site of the generator, thus, eliminating the need for manifests to
ship hazardous waste. Typically, MFR enters into long term service agreements
with the customers giving MFR recurring and predictable revenue streams. MFR
maintains and continues to grow it blue chip customer base which includes GM,
Honda, Mercedes Benz, Southwest Airlines, Waste Management, among others.
In 2010, GM awarded MFR the Environmental Services Supplier of the Year
Award.

Defensible IP
MFR holds two patents and has a third pending. Our award winning, patented
liquid recovery centrifuge technology removes liquid waste from sorbent
material. The uniqueness and high efficiency of MFR’s solution stems from its
ease of deployment. MFR’s solution is a mobile reclamation platform with
versatile mounting capabilities to provide services via trucks, containers or other
mobile platforms based upon the demands of the client.

Synergistic Cross Sell Platform
MFR’s highly desirable, IP protected, fluid recovery services provides instant
market penetration for the Company’s second and third divisions, Arcis Energy
(AE), and Arcis Logistics & Distribution (ALD). AE takes an MFR customer’s
industrial waste by-products (beneficial reuse material) and sells the by-product
to AE’s customers (“receivers”) to be used as raw materials in that receiver’s
products, manufacturing process, and/or services. By converting the waste into a
beneficial reuse product, AE’s customers are able to purchase the product at a
significant discount to market for the same virgin product. AE typically enters
into long term supply and off-take agreements with its beneficial reuse material
generators and its receiver customers thereby ensuring a predictable stable

1

Confidential: Nothing in this Business Plan shall constitute an offer to sell any securities of Arcis Resources Corporation (OTC: ARCS.QB) or any other entity. Any such offer (if one
is made) may be made only by a formal offering document prepared by Arcis Resources Corporation. © 2003-2012 Arcis Resources Corporation all rights reserved.


WIN-WIN VALUE PROPOSITION: revenue stream for AE. AE’s deep knowledge of the market enables margin
optimization through arbitrage, blending, cracking, tax minimization and logistics.

Arcis Logistics & Distribution (ALD) works as the Domestic North American
trading arm of Arcis Energy and provides all of the planning, management,
monitoring, accounting, billing, and tax reporting for: identifying requested
sources and/or buyers of a product; providing all logistics planning to include, but
not limited to: identifying transport partners, costs, testing partners and
procedures, and payment methods; management of the daily, weekly, monthly,
and/or quarterly shipments, transactions, and load testing; and providing
accounting, billing, and tax reporting services for each delivery.

ALD was strategically acquired for its established domestic relationships ranging
from producers, to storage and pipeline operators. ALD has established
contacts in aviation, energy and utilities, paper, concrete, fiberglass,
manufacturing and transportation, as well as in retail and wholesale distribution.
COMPANY AWARDS: ALD is federally and state licensed and operates the domestic North American
2011 GM Supplier for Environmental trading operation. ALD is able to import, export, and purchase refinery direct,
blend, store and ship via the pipeline systems in the United States. ALD is
Excellence actively involved in the petrochemical community and understands the dynamics
2005 Daimler-Chrysler International involved in this sensitive, highly regulated arena.

Environmental Leadership Award Due to this dynamic, Arcis Energy has tremendous cross-sell leverage as
generators and receivers often switch roles as Arcis identifies each party’s waste
2004 General Motors “We Care
streams and needs. Moreover, these same generator and receiver customers are
Award” potential customers for MFR and the Company’s other services including Arcis
Logistics and Distribution. Providing this suite of services also satisfies a
challenge of many customers by bringing generators and receivers of product
together through a single and convenient platform to have their waste byproduct
KEY MARKET METRICS:
reclaimed, matched with a buyer and/or seller, and the logistics and distribution
of the product completed without the need to engage any other vendor to assist
Beneficial Reuse TAM:
in the process from start to finish.
$50.8B – Global
$10.2 B – North America MARKET
Currently, this market is valued at
Historical Market Growth 7.8% CAGR
$50.8B globally, and $10.2B in North
Global energy demand will double over America with a projected growth rate
of 7.8% CAGR. We believe these
the next 40 yrs.
numbers are greatly understated
Rising energy & material costs because in the US, the EPA only tracks
the top waste generators. Since this
Rising “green” regulatory costs reducing
market is highly fragmented, there are
ROI on plant & equipment by up to 42% thousands of large, medium, and small
generators who fall “below the radar.”
Depletion of natural resources
As a result of this, we believe the US
Increased regulatory regime forces market alone could be 15 to 20 times
larger than currently tracked by the
customers to seek alternative solutions
EPA.

There are several key factors driving
the market. Rising energy and material
costs are causing customers to seek
out alternate sources of raw materials.
This is compounded by the rising cost of “green” regulatory regimes which is

2



reducing ROI in plant and equipment by up to 42%. These two drivers are
ALLIANCE PARTNERS: further enhanced by margin compression resulting from globalization which is
forcing management teams to scrutinize and reduce every line item cost in their
operation.

On a local market level, these market forces manifest themselves in new
environmental regulations that are favorable to Arcis. For example, Wisconsin
banned the disposal of Oil Filters and Absorbents in Landfills in 2009 (2009
Wisconsin Act 86). Consequently, all industrial customers must find alternatives
Boutique active trader of specialty to landfill disposal in this market; making it an ideal target market for Arcis.
petrochemical products with operations Current solution providers primarily provide laundering services which are not
in the US, the Caribbean, Africa, & S. cost competitive with our Company’s Mobile Fluid Recovery solution; making
America this a fertile market for growth.

$39M 2010 Net Revenues with 20 What is the Opportunity for Beneficial Reuse Services?
employees The generator market, consisting of 1,000’s of companies, is very fragmented.
There is no central market or mechanism to match buyers (receivers) and sellers
(generators). Most generators do not even know there is a market for their
industrial process by-product. Based on historical transactions and the current
beneficial reuse sales pipeline, Arcis believes there is an enormous opportunity
to build a sales and marketing platform which identifies matches between
generators and receivers and utilizes long term fixed margin arbitrage or cost
plus revenue models to maximize margins and reduce risk.
International environmental services
company specializing in waste recycling What is the Opportunity for Fluid Recovery Services?
with operations in Spain, UK, USA, There are several market conditions that are driving this business. First, the
France, Turkey, & Thailand $1.45B US industrial market for sorbent materials is growing at a rate of 5% per
annum. Second, Polypropylene (PP), the primary material used for industrial
~$336M 2010 Revenues with 1,200 sorbent products, prices are forecast to increase as US PP manufacturers output
employees shrinks resulting from a market driven conversion to less expensive and less
efficient feed stocks. Third, increasing costs and regulatory liability in handling
and disposing of hazardous waste is driving industrial customers to implement
waste minimization programs. Fourth, industrial customers are increasingly
focused on the market’s perception of their “green” image.

BUSINESS HISTORY
Owned by the 9th richest family in Saudi
Arcis Resources Corporation is the result of four acquisitions/mergers which
Arabia, Al-Suwaiket is a leading provider
took place between September 22, 2010, and July 15, 2011. These acquisitions
of oil, gas, & pipeline services to KSA &
consisted of American Plant Services, Mobile Fluid Recovery, Gulf Coast Energy
the GCC
and Distribution and the assets which formed Arcis Energy, Inc. Upon the
completion of the acquisition of American Plant Services (“APS”) on July 15th
Offices in Al-Khobar, Riyadh, Jeddah,
2011, it was the decision of management and the Board of Directors of Arcis to
across the Middle East & Europe
cease operations of APS and proceed with selling all assets non-relative to
corporate direction. Post consolidation, the company had $7.5 million in debt,
which was reduced within the first 6 months post-merger to $1.5 million; all non-
essential personnel were removed from the operation; and the company was
restructured from an industrial service operation to a beneficial reuse and
recycling services company. The end result of this restructuring resulted in a
gross margin increase from 31% to a projected 58% in 2012 post funding, and is
projected to increase EBITDA from a historical 19.4% to 34.1% projected in
2014.

Historical audited financials were filed on July 15,, 2011, and indicate the
following: $12 million for 2010 annual revenue pre-merger completion, $5.4
million in revenue for 2011 which is comprised of revenue generated from

3



operations in January through July up to and from the merger date. Post-merger
the company had limited operations due to and during its restructuring and
restarted operations in November, 2011 and based on current growth trends
GROWTH STRATEGY: shall reach full, positive revenue operations by beginning of the second fiscal
quarter of 2012.
Utilize existing key customer’s national
facility footprint to expand MFR to 24 PRE CONSOLIDATION
branch locations within 24 months HISTORICAL STATEMENT OF OPERATIONS

Leverage four (4) existing Master American Plant Services, LLC & Subsidiary
Services Agreements (MSA) with Nexeo Statement of Operations
Solutions, Waste Management, Heritage For Years Ended December 31, 2010 (Consolidated)
Environmental, & Honda of America And 2009 (Unconsolidated)
Mfg., Inc., to penetrate over 25,000
facilities currently served by these
partners. 2009 2010
Revenues 8.76 11.50
Maximize revenue per customer CoGS 6.18 7.66
through cross sale of fluid recovery &
beneficial re-use solutions. GP 2.57 3.84
Exp 1.88 2.74
Expand into new markets and industries EBITDA 0.69 1.10
with similar environmental challenges.
EBITDA % 7.9% 9.5%
Centralize logistics & sales operations
FORWARD LOOKING FINANCIAL PROJECTIONS
Capitalize on current sales pipeline of Proforma Projections ($millions)
over $39MM in beneficial re-use 2012 2013 2014
revenue.
Revenue $ 10.32 $ 44.66 $ 76.76
CoGS 4.29 20.36 36.03
INVESTMENT HIGHLIGHTS: Gross Margin 6.03 24.30 40.72
Operating Exp 4.70 12.84 14.54
“Green” Company
EBITDA $ 1.33 $ 11.45 $ 26.19
Large & growing TAM EBITDA % 12.9% 25.6% 34.1%
Patented Technologies
Note: 2012 forward looking projections assumes the Company completes $5MM in financing in January
Highly scalable “hub & spoke” business 2012.
100% customer retention
Multi-year contracts
Fortune 500 customer base
Strong management team
Diversified sales pipeline

4



MANAGEMENT TEAM
With over 100 years of combined knowledge, Arcis’ talented management team
PROFESSIONAL PARTNERS: blends the best of leadership with years of experience in the energy,
environmental and beneficial reuse industries. In addition to generating increased
Investor Relations: profits and cash flow, the priority of management is to lead the company to
Hart Partners, LLC achieve its full potential in the global beneficial reuse and recycling market.
www.hartpartners.net
Kenneth Flatt is the Company’s CEO. He has over 20 years of extensive
Public Relations: management experience in the environmental and industrial services industry.
SS/PR His accomplishments include the growth and sale of KR Industrial Services of
www.sspr.com Alabama from a four person operation to over 200 employees and five locations
and culminating in the sale of KR to a publicly traded company. Mr. Flatt’s
Accounting/Auditor: strength of leadership and industry expertise has been repeatedly proven
Rosenberg, Rich, Baker Berman & throughout his career and is showcased in the drastic growth and development
Company initiatives that he has been able to develop and implement.
www.rrbb.com
Trevis Lyon is the Company’s President. He has over 11 years of management
and business development experience in the environmental and industrial
Gen. Corporate Legal Counsel: services industry. As Business Development Manager at Ashland Midland
Robert Brantl, Esq Chemicals of Ohio, Mr. Lyon’s team produced the fastest growing business at
Ashland resulting in a growth rate exceeding 30% year over year. Mr. Lyon’s
Securities Legal Counsel: market knowledge, advanced level management, and marketing and sales skills in
Andrea Cataneo the new business development arena have been the driving force behind the
Sichenza, Ross, Friedman, Ference, recent growth of Arcis’ US domestic market operations.
LLP
www.srff.com Robert Di Marco is the Company’s Executive Vice President. He has over 25
years of experience successfully restructuring and creating growth strategies for
Corporate Counsel: companies in the oil, gas, commodity trading and financial services industries. His
Arthur Wright resume is marked by numerous personal achievement awards, such as the Dr.
Thompson-Knight, LLP Arthur E. Turner “Entrepreneur of the Year” award. Mr. Di Marco was also
www.tklawo.com responsible for leading the precedent setting and law changing company
reorganization in the Standard Oil of Delaware case. Drawing on his extensive
experience managing investments and operations in foreign markets, Mr. Di
Marco has been leading the growth of Arcis as it branches out onto a global level.
CONTACT INFORMATION: Mr. Robert Fanella is the Company’s Chief Financial Officer. He has over 36
years of experience in worldwide industrial and technological enterprises,
Arcis Resources Corporation including seven years at Motorola as a financial analyst, and later as business
Robert Di Marco controller. Mr. Fanella has co-founded and served as CFO for companies ranging
Executive Vice President from metal fabrication to electronics manufacturing. He also has provided
Direct: 561.713.1183 independent financial consulting to companies in industries such as electronic
r.dimarco@arcisresources.com manufacturing, industrial plating, chemical, and health

5


Arcis Exec Summary

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Arcis Exec Summary

Ähnlich wie Arcis Exec Summary (20)

Mehr von ProActive Capital Resources Group

Mehr von ProActive Capital Resources Group (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (15)

Arcis Exec Summary