ESGL Holdings Limited

Good morning to those of you joining us from the United States. Good evening to those of you joining us from Asia. We'd like to welcome all of you to the Environmental Solutions Group Virtual Investor Day. My name is Crocker Colson with AUM Media, and we're very pleased to be able to hold this call to introduce both our new shareholders and industry analysts to ESGL's unique investment story. Before we get started, I'd like to refer our listeners to the disclaimers about today's presentation. In the course of their remarks today and in response to your questions, management may make certain forward-looking statements about the company's plans, strategies, and expectations. While such statements are based on assumptions that management believes are reasonable, such forward-looking statements are inherently uncertain. the company would like to refer investors to a more complete discussion of these risks and uncertainties in its filings with the SEC. In addition, in this presentation, we do reference certain third-party information statistics that management believes to be reliable, but these are subject to change and should not be assumed to be complete. Turning to today's agenda, we're going to open up with an overview of ESGL's history, mission, and business model from the company's founder and CEO, Mr. Leng Chuan-Kwek. Then, Lawrence Law, who's the company's Chief Sustainability and Strategy Officer, will walk us through ESGL's business overview, market opportunity in Southeast Asia, its growth strategy, and its commitment to innovation. As an illustration of that commitment, we're then going to be joined by Dr. Andre Vecchia, who's the founder and director of Nanomatics. He will speak in more detail about the exciting joint venture between ESGL and Nanomatics to produce carbon nanotubes and hydrogen from plastic waste. Mr. Quek will then make some brief closing remarks, and we will then open up the call to investor questions. You can find brief biographies for each of our speakers on the registration page for this event. During the Q&A section, we will also be joined by the company's chief financial officer, Mr. Xianqing Hou. It's now my great pleasure to turn the call over to the company's founder and CEO, Mr. Langchuan Quek. Over to you.

A very good morning to everyone on the call. My name is Leng Chuang, and I'm the CEO and Chairman of ESGL. This morning, I'm really excited and delighted to share more about ESGL from our green laboratory in our Singapore plant. What we are all about, how we are different, how we intend to grow the business, and how we will maximise your shareholder value. Let me start by telling you how it all began. My team and I, having had decades of experience in industrial waste management, we could always identify waste that could be recovered as a secondary resource, but was not. Lack of skill, lack of operational capability, no off-take connections resulted in poor economic viability, which made it then unviable to recover these materials as a business. But this turned some years ago when large waste generators started seeking sustainable and circular solutions for the waste that they generated to meet their own sustainability goals. A new demand expressed by these waste generators created a void in the market. A void in any marketplace means opportunity. An opportunity to be taken, which we at ESGL rose to the occasion to do just that. In a heretofore industry of no product differentiation where tons of waste generated was matched against tons of disposal capacity in a commoditized manner, it was just number against number, little brand differentiation and certainly no product differentiation. This was the backdrop against which ESGL arose, with a new value proposition to the modern waste generator of international repute that manufacture semiconductor chips, biopharmaceutical drugs and medicines, petrochemical products and other specialty chemicals. Huge quantities of spent acids, sludges, solid residues with metals and minerals, waste plastics, waste wood, begged to be rescued. And so we responded with our value proposition. Our value proposition is essentially our mission. which is to provide our customers environmental value and our shareholders economic value through the conversion of industrial waste into circular products. How is ESGL differentiated? Here's how. Waste comes to ESGL to be recast, repurposed, revived, reincarnated, indeed to be reborn into circular products. Our facilities are cradles of creation. where the competition operates places of destruction, of demise, of death, where waste eventually gets buried and disposed of in a landfill. Where the competition speaks of tonnage, capacity, size of fleet, locked in an archaic, commoditized mindset and stuck in reverse, we at ESGL, we sink circularity, environmental value, decarbonisation and sustainability goals. Where the competition merely transects, we at ESGL, we collaborate, connecting with our customer through common threats like the UN SDGs, carbon footprint, renewable energy certificates, plastic credits, landfill avoidance. We seek long-term relationships, the desired outcome of which are sticky contracts of 24 months or more. Attributes that used to be product differentiators such as safe operations and work practice, fair employee practice, quick operational turnaround, good customer service have all been relegated as basic hygiene factors. We at ESGL were built upon these basic hygiene factors and layered on our value proposition providing environmental value of helping our customers green and decarbonize the tail end of their supply chain. We back this up with green engineering, green chemistry, with technology that is designed to operate with minimal energy or indeed with renewable energy. With operational methodologies optimized first in our in-house laboratory, then implemented in the field. and the entirety all tightly hemmed together and managed by a team with decades of relevant experience. This is not wishful thinking nor hypothetical theory. Two years ago, a major semiconductor chip manufacturer awarded us a $1 million contract. Last year, this same company awarded us a contract of $5 million, a clear mandate of trust and approval of our value proposition. and endorsement for us to stay the course. We intend to stay the course and grow the business and increase shareholder value. We intend to do this through four pillars. The first, to acquire more waste through increased and stronger engagement and collaboration with the modern waste generator, particularly with waste that we are already familiar with. Two, to increase the scope and type of waste to be acquired and converted into a circular product through R&D and collaboration with third-party innovators like Nanometics that synthesizes carbon nanotubes from mixed waste plastics. Three is to secure offtake by strengthening and forging new partnerships and collaboration with offtakers for current and and future circular products, including environmental attributes such as carbon credits, renewable energy certificates, and plastic credits. Fourthly, circular integration or vertical integration by M&As or joint ventures to acquire more waste, to secure off-take for more circular products, or even support services within the growth centers of Southeast Asia. Let me explain now how we can increase shareholder value. ESGL first levies a treatment charge for every ton of waste that it receives from the waste generator. Secondly, ESGL sells the circular product it converts from this waste to generate a second income stream. Thirdly, For some of these circular products, ESGL consumes as raw material or generates renewable energy for captive consumption, realizing massive cost avoidance that impacts directly the bottom line, keeping our operational expenses well controlled and energy costs hedged and free from the fluctuations of oil prices. This is akin to having an inbuilt vertical integrated system with all the benefits that come with it. This business model generates compelling gross margins, exceeding 55%, translating directly into shareholder value for you. This supercharged business model is scalable, repeatable in any concentration of industrial manufacturing, in any growth economy. Characteristics that map just about every modern city in Southeast Asia, and that's the potential of where we can take this business. By 2023, we would have completed a major upgrade of our thermal treatment capabilities and our acid recovery capabilities to support the growth that we have projected for 2024. I'm also excited to share that we have also identified and commenced discussion with several M&A targets and JV partners in Singapore, Malaysia, Indonesia, with some in the finalisation stages of due diligence, where we are working towards a positive outcome and possibly make some nice announcements in the near future. I'll now hand over to my colleague Lawrence, our Chief Sustainability and Strategy Officer, to provide more information with further resolution and colour. I thank you for your attention.

Thank you, Leng Chuan.