FCTile

Commercially viable sustainable economy project:
•Foam concrete tile (FCTile) uses environmentally friendly roof tiles production technology, which is based on the closed end plastic recycling cycle, patented in several jurisdictions
Product line includes high end looking tiles , which mimics ceramic tiles, most expensive product segment; PV roof tiles , capturing growing demand for a BIPV products and turn key installation service

The Company just started its activities, thus does not have financial reports. $300thsd was invested in the devolepement and activities. Please refer to the presentation.
1000 m2 of the product was successfully produced and installed foam concrete based roof tiles, which have a competitive edge over conventional metal --, and ceramic based roof tiles
Company`s projected gross margin reaches 43% in the final year:
• Projected gross margin for the FCTiles at 55%, and solar FCTiles at 40%
• Key drivers are low cost raw materials , and low heat production process
FCTiles are to be marketed as a cheaper , yet as reliable product as a
conventional tiles, and will compete with other materials as well:
• Tiles to be initially sold at a market bottom price , with 3% annual price
appreciation , and 1 st half year volume of 13 thousand m2
• Export to start in 1Q2022 , after brand strengthening on the domestic
market, demonstration of product`s reliability
• In 2021 after the start of production of solar FCTiles , part of capacity
will be allocated on that stream
• Production to reach 192 thsd m2 in 2026, 290 thsd m2 capacity , 40 % of
the products exported , and 37% of revenue to be derived from export
• Installation revenue growth will gradually decrease due to increase in
amount of sales channels and export
Solar tiles production are to start production after the brand
strengthening, in 2Q2022:
• As well as tiles, solar FCTiles is to be sold in the lower price range , with
an annual price appreciation of 3%
• Up to 30% of the output capacity will be allocated to the solar
production stream, reaching 58 thsd m2 in 2026
• 40% of the product is to be exported by 2025, with 48% of revenue to
be derived from export

Environmentally friendly roof tiles production, with unique technology, based on the patented closed end plastic recycling cycle, capturing post COVID residential construction demand and redevelopment of existing housing
Product line includes high end looking tiles , which mimics ceramic tiles, most expensive product segment;
PV roof tiles , capturing growing demand for a BIPV products and turn key installation service
Export opportunity of the product is to be exploited thanks to the products lightweight against conventional roofing materials , price and environmentally friendly appeal

Lack of affordable and good-looking roofing materials on the market, as well as huge amount of plastic waste. Lack of efficient plastic waste processing on the territory of Ukraine.

FCTile was started as a roofing materials production company , with a mission to exploit opportunity of growing post COVID residential market , while recycling discarded plastic waste and bringing value to both shareholders and society.

• Company founder is a seasoned engineering and business development professional , with 20 years of experience in the plastic derivatives industry
• Company`s team have both engineering and sales management experience of plastic and other products in large scales: includes 2 engineers, sales and marketing professional and founder
• The Company has several patented utility models in Ukraine, several know hows

• The Company aims to apply the experience of the team in order to produce quality product, maintaining high margins thanks to low prices of raw materials and cheap production process
• Introducing an effective plastic waste treatment in Ukraine, which currently doesn’t have an effective processes of waste utilization will bring additional value to Ukrainian society

Traditional tiles: Ondulin, TILERCAT, TECHNONICOL, Aquaizol, RoofOK, TEGOLA, IKO, GAF, KATEPAL

Solar Tiles: CertainTeed Apollo II Shingle, CertainTeed Apollo II Tile, Dow PowerHouse, SunTegra Shingle, SunTegra Tile, Tesla Solar Tile

FCTile roof tiles produced using foam concrete and recycled plastic, preserving it for more than 50 years after installation:
• FCTile is a unique multilayered roofing material , with an effective heat protection and regulation and noise isolation, delivering efficiency, durability and fire resistance characteristics of conventional tiles
• Weighing up to 5 kg per m2 against up to 55 kg conventional clay tiles , it makes for an easy transportation, and installation using simple interlocking system
• The production process uses less heat than conventional tiles up to 300 °C, and minimal quantity of water, standing by environmentally friendly processes
• Installation of 100 m2 roof , with a team of 3 may be done within 1 working day , and the price pegged at UAH200 per m2, capturing the demand for turn key services
FCTile solar tiles are produced using the same production line, with an inserted photovoltaic element:
• Current tiles are using Crystalline silicon elements, while tiles with thin film materials are in development
• Solar tiles installation doesn`t require structural renovation of the building`s roof , and may be used in new constructions , as well as in redevelopment projects
• Solar tiles to occupy up to 30% of the roof, cost approximately UAH350 per m2 to install
The Company will provide turn key offer for all domestic installations, capturing demand for the service

Company`s projected gross margin reaches 43% in the final year:
• Projected gross margin for the FCTiles at 55%, and solar FCTiles at 40%
• Key drivers are low cost raw materials , and low heat production process
FCTiles are to be marketed as a cheaper , yet as reliable product as a conventional tiles, and will compete with other materials as well:
•Tiles to be initially sold at a market bottom price , with 3% annual price appreciation , and 1 st half year volume of 13 thousand m2
• Export to start in 1Q2022 , after brand strengthening on the domestic market, demonstration of product`s reliability
• In 2021 after the start of production of solar FCTiles , part of capacity will be allocated on that stream
• Production to reach 192 thsd m2 in 2026, 290 thsd m2 capacity , 40 % of the products exported , and 3 7 % of revenue to be derived from export
• Installation revenue growth will gradually decrease due to increase in amount of sales channels and export
Solar tiles production are to start production after the brand strengthening, in 2Q2022:
• As well as tiles, solar FCTiles is to be sold in the lower price range , with an annual price appreciation of 3%
• Up to 30% of the output capacity will be allocated to the solar production stream, reaching 58 thsd m2 in 2026
• 40% of the product is to be exported by 2025, with 48% of revenue to be derived from export

Website with e-store element; marketing with distributors, building companies

Company plans to start production in the May of 2021:
• 1 st phase of the production to consist of 1 production line, and is ready for launch, will be located on rented production site, CAPEX 164 thsd
• 2 nd to consist of 2 production lines, be launched in the 1Q2021, constructed on the own scalable production site, valued at $280 thsd
• In the 2Q2022 production of tiles with solar photovoltaic elements to be launched, with no additional CAPEX required
Further Company expansion to be financed through FCF, loans; capacity to increase by 2 lines per year, 55 thsd m2 output capacity:
• Current valuation of the firm estimated at $900 thsd based on forward revenue and, inc. patents, IP, MVPs
• 1 st phase launch to be financed by the current shareholders and investor in proportion of 41% and 59% respectively
• After first financing round Investor`s proposed share will reach 13%
• 2 nd round to be financed in proportion of 10% / 90 % by current shareholder, investor or new investor for 12% equity
Plant site is to be developed with a prospect of increase production lines amount up to 11, should the Business plan reach its targets

Project and Investor return based on the conservative scenario:
• Whole project CAPEX valued at $768 thousand in 6 phases , through 30.05.2021 till 31.12.2026, with expected Unlevered IRR of 90% and PBP of 3.5 years, Exit in the end of 2026 at 7x EBITDA, at $ 18.9mm valuation
• Investor investment valued at $ 375 thousand, acquiring 25% of the Company through first two years, at 92% IRR with PBP of 3.5 years

Risk mitigation of the project:
• The product is considerably cheaper than lower middle and high range
roofing materials, leaving room for price appreciation
• Being r eplacement of high end looking and expensive roofing
product, FCTile will attract customers who seek cheaper, but still good
looking products
• Low price , smaller scale than the conventional producers, gives ability
to moderate production with low loses during market downturns

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FCTile roof tiles produced using foam concrete and recycled plastic, preserving it for more than 50 years after installation. Roof tiles with photovoltaic elements are in development.