tion In Inves estor Pr or Presenta esentation O ff setters - - PowerPoint PPT Presentation

In Inves estor Pr

• r Presenta

esentation tion

Offsetters Climate Solutions Inc.

TSX-V: C : COO OO

Corporate History

Offsetters Climate Solutions was formed through the consolidation of three complementary carbon management companies in December 2012:

• Established in 2005, ERA Carbon Offsets Ltd. - a leader in

international forest carbon offset development and commercialization.

• Established in 2006, Carbon Credit Corp. (CCC) - a leader in

agricultural and forest carbon, as well as climate software and technology solutions. CCC merged with Offsetters in 2010.

• Established in 2007, Offsetters Clean Technology - a leader in

technology offset development and commercialization, and sustainability consulting.

Management & Board

Management Team

James Tansey PhD, Chief Executive Officer:

• James is President and CEO of ERA. He is also the founder of Offsetters. He is an

associate professor at the University of British Columbia's Sauder School of Business and is the Executive Director of ISIS, a Research Centre at the Sauder School of Business dedicated to social innovation and sustainability. He has taught in MBA, EMBA, Executive Education, MSc and Undergraduate programs in the UK and Canada. James received his PhD from the University of East Anglia in 1999 and has written extensively on industrial ecology and climate change.

Management & Board

Management Team

Jeff Calvert, P.Eng, MBA, Chief Financial Officer:

• Jeff Calvert is the chief financial officer and the director of human resources. Jeff

joined ERA from Borealis Carbon Offsets, where he was founder and managing

• director. He holds a degree in mechanical engineering from the University of

Western Ontario and an MBA with specialization in management consulting from Royal Roads University in Victoria, BC. Jeff is a regular expert panellist in the forestry carbon space and a professional engineer licensed in Ontario.

Farran Hobbs CA, Chief Operating Officer :

• Farran has over 15 years of experience in finance, operations and business
• management. Farran has a degree from UBC in International Business and

Finance with a focus on Southeast Asia. Farran went on to earn her CA designation, completing her articling with PwC where she oversaw audits of companies in the mining and high-tech sectors before moving into the transaction services group where she performed due diligence and deal support for mergers and acquisitions, equity and debt transactions in the high-tech and retail products sectors.

Management Team

Joerg Germann P.Eng, Senior VP and CTO

• Joerg is a German-trained physics engineer, with a Diplom-Ingenieur in

Applied Physics from Munich University for Applied Sciences, and is a BC Registered Professional Engineer in Engineering Physics. He also has been since 2009 the Chairman of the CTO roundtable at British Columbia Technology and Industry Association (BCTIA). Joerg is responsible for our technology product roadmap and software solutions.

Frederic Jacquemont, VP Developing Markets

• Frédéric has wealth of experience in international carbon markets and

environmental law. His international career spans 19 years as an environmental researcher, business consultant and legal counsel for development agencies, environmental institutions and carbon offset development companies. Frédéric is an expert in international climate law, particularly the regulatory arrangements of the UN Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the Clean Development Mechanism (CDM).

Management & Board

Management & Board

Board of Directors

• Robert Falls, PhD, RPBio:

Chairman

• James Tansey, PhD:

President and CEO

• Jim Logan:

CFO, Ledcor

• Alexander Zang:

Founder, BCC GmbH, Forest Carbon Group AG

• Georg Schattney:

CEO, Forest Carbon Group AG

• John Poulter:

CIO, Portfolio Strategies Securities

• Graham Harris:

Chairman, Redhill Resources

Company Focus

1. Origination

• Carbon offset project origination, development and

commercialization of offsets in regulated and pre-compliance markets.

• Leading provider of voluntary offsets

2. Advisory Services

• Advisory Services to medium and large cap corporations for

sustainability consulting.

• Offset sales generator and consulting revenue generator.

3. Software Innovation

• Software development and integration to support project
• rigination, corporate reporting.

Company Highlights

• Canada’s largest offset project developer with over 6 million offsets

developed and sold to date.

• The largest fully integrated carbon management and offset

development team in North America.

• Over 200 million tonnes of carbon under management including the

largest forest carbon project in the world.

• Strategically positioned with activity in every key established or

emerging regulated North American carbon market.

• Solid revenue foundation with contracted sales and clients.

Carbon Market Growth

• Regulated Markets (Kyoto & other compliant)
• Global markets held steady in 2011, representing 10.3 billion tonnes of

CO2e, US$176 billion in trading (World Bank)

• North American markets up 70% in 2011 to USD $168M (Thomson

Reuters/Point Carbon)

• Carbon price forecast $12-$65 between 2013-2020 with regional

North American cap-and-trade (Western Climate Initiative) (Thomson Reuters/Point Carbon)

• Offset demand in WCI expected to be worth between $4B - $10B

(Thomson/Point Carbon)

• Voluntary/Corporate Social Responsibility (CSR) Markets
• Global market grew from 12 Mt in 2004 to 93 Mt in 2011, representing

USD $576 million in value (Ecosystem Marketplace)

• Total international carbon market to exceed $2.2 trillion by 2020 (HSBC)

Carbon Market Drivers

1. Existing Climate Policy & Legislation:

• AB-32 in California, Quebec, Alberta, in North America,

Australia, Korea, Kyoto Protocol (EU-ETS), New Zealand. (Legislated regions are growing year over year) 2. Anticipated Regulations:

• China, Mexico, Brazil, Japan, Peru, Vietnam, Kazakhstan,

Morocco, British Columbia, Ontario (Pre-compliance regions are growing year over year) 3. Corporate Social Responsibility (CSR)

• Proactive reporting and readiness for compliance obligations

(CDP signatories and reporting growing year over year) 4. Branding & Market Differentiation

• California and Quebec: Emissions Trading Systems
• Estimated demand of 232 million offsets under ARB in California

between 2013-2020, with offset prices ranging from $10-$65 per tonne

• Alberta – Specified Gas Emitters Regulation (SGER)
• 60 million tonnes of CO2e to 2014, carbon price to reach $25/tonne
• Federal Oil and Gas Regulations
• National sectoral regulations which would create demand for 65 million
• ffsets, post 2017
• British Columbia
• LNG regulation with possible effect in 2013, with 2018 rollout
• Up to 14 million tonnes per year of offset obligations
• Jurisdictional Nested REDD Initiative (JNRI) in the DRC
• Recognition by 2014-15, potential for Mai Ndombe tonnes to be

accepted into bilateral markets.

Future Growth: Compliance Markets

Portfolio Highlights

• ARB Pipeline (IFM):
• Multiple projects in the U.S. for California market - ARB (Air Resource

Board) protocols

• Current pipeline up to 1M offsets, Value estimated at $10M - $25M
• Mai Ndombe (REDD+):
• 300,000 Ha project in the Democratic Republic of Congo (first in DRC)

– VCS/CCBA protocols

• Will produce approximately 175Mt of offsets over 30 years.
• Pipeline Value $875M+ and revenues of up to $153M
• Great Bear Rainforest Carbon Conservation Project (IFM):
• Largest IFM project in North America, in BC, (6m Ha) – FCOP protocol
• First Nations, Province, Private Sector undertaking, first of its kind.
• Will produce 30MT over its lifetime.
• Pipeline Value up to $60M
• Darkwoods Carbon Conservation Project (IFM):
• Second largest IFM project in North America, in BC, (55,000 Ha) –

VCS protocol

• Award winning, with Nature Conservancy of Canada

Market Achievements to Date

• Developed the largest forest carbon project in the world (Mai

Ndombe REDD+) generating 175 million tonnes over 30 years in the Democratic Republic of Congo.

• Developed the largest forest carbon project in North America

(Great Bear Forest) within British Columbia Canada, generating 30Mt of offsets over 25 years.

• The largest and most diversified supplier of offsets into the BC

and Alberta regulated markets.

• Developing substantial pipeline for ARB in California.
• Official Supplier to the 2010 Winter Olympic and Paralympic

Games, making them carbon neutral for the first time in history.

• Official Carbon Offset sponsor of the 2013 America’s Cup.
• Supplier of choice to some of the fastest growing companies

in North America, including lululemon athletica, and Aimia.

Clients & Offset Users

Projected Sales Revenue

2013 ¡ 2014 ¡ 2015 ¡ 2016 ¡ Revenue ¡ $7,401,808 ¡ ¡ $9,688,688 ¡ ¡ $10,165,196 ¡ ¡ $15,000,000 ¡ ¡ Gross ¡Profit ¡ $191,944 ¡ ¡ $1,692,681 ¡ ¡ $2,173,580 ¡ ¡ $3,730,000 ¡ ¡ EPS ¡ $0.01 ¡ ¡ $0.06 ¡ ¡ $0.07 ¡ ¡ $0.12 ¡ ¡ ¡$-­‑ ¡ ¡ ¡ ¡ ¡$2,000,000 ¡ ¡ ¡$4,000,000 ¡ ¡ ¡$6,000,000 ¡ ¡ ¡$8,000,000 ¡ ¡ ¡$10,000,000 ¡ ¡ ¡$12,000,000 ¡ ¡ ¡$14,000,000 ¡ ¡ ¡$16,000,000 ¡ ¡

Growth Targets - 12 months

• Expand ARB pipeline focused on forestry projects
• Existing legislation, firm demand, pricing upside out to

2020.

• Expansion of DRC project under the JNRI programme with the

World Bank:

• Work underway with Bandundu Province and National

government, discussions with bilateral countries.

• Pending BC legislation, expand BC supply to meet needs of LNG

industry with eyes to Fed O&G Regs.

• Current portfolio perfectly suited for demand out of BC and

Federal O&G regulations.

• Expand Sales and Marketing effort across all platforms
• Voluntary sales, Advisory Services and compliant

contracting.

Summary & Value Proposition

• Very well positioned, demonstrated leader in carbon markets

with strong technical, sales and advisory teams.

• Contracted sales agreements for over $8,000,000 through

2014.

• Strategically positioned for legislated emission markets

(California, Quebec, Alberta, Federal, BC).

• Current Portfolio Value > $20 million +.
• North American offset market to be worth more than $10

billion out to 2020.

• Further opportunity for strategic corporate consolidation in

relevant markets.

COO Share Capital

Exchange listings COO: TSX Venture 9EA: Frankfurt 9EA: Berlin Shares issued 30,841,552 Options outstanding 4,819,759 Warrants outstanding 5,488,000 Fully diluted 41,149,281 Share price (Jan 12, 2012) $0.23 Market cap $7,050,000 Current assets (cash, inventory, receivables) $ 1,351,988 (Sep 30, 2012) Insiders hold 63% Control position (Forest Carbon Group AG) 29.9%

Stock Performance

IPO Market Crash $5M Financing, US Legislation Expectation US Leg Fail Offsetters Acquisition

Forward looking statements

This presentation may contain forward-looking statements relating to the Company’s operations or to its business environment. Such statements are based on the Company’s operations, estimates, forecasts, and projections, but are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed. Although any such forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot guarantee that actual results will be consistent with these forward-looking statements. In addition, the Company disclaims any intention or obligation to update or revise any forward-looking statements, for any reason. We also do not commit in any way to guarantee that we will continue reporting on items or issues that arise during our presentation or discussion.

James Tansey james@offsetters.com www.offsetters.com Suite 1000 675 West Hastings Street Vancouver, BC, V6B 1N2 Canada +1 604.973.6512

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