Hydrodec Group plc

a unique renewable oil proposition

Ian Smale, Chief Executive
Chris Ellis, Chief Financial Officer

Hydrodec Group plc

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United States only in offshore transactions to persons that are not US persons as
defined in, and in reliance on, Regulation S.


Slide 2
Hydrodec Group plc

We produce new, renewable transformer & base oils as good or better quality than
original oil
Unique industry-leading clean-technology is proprietary, proven and efficient
Two commercial operations in USA and Australia generate positive cash flow
Eight consecutive years of revenue growth, now poised for expansion & positive EBITDA
Planned build-out in US underpinned by feedstock from Strategic Partnership
Technology development underway offering access to a step change in opportunity
Newly acquired UK business creates platform for technology-led growth
The basic proposition
based in proven transformer oil re-refining with real potential for
technology-led growth
Slide 3
Hydrodec Group plc

Transformer oil global market opportunity
a unique competitive technology to treat used and contaminated T-oil
COMPETITIVE
ADVANTAGE
ENVIRONMENT
SOURCES OF
USED OIL
USES
Global market 2012: 1.35bn litres, growing at
estimated 5% cagr to 2017*
Valued at US$1.6bn, growing at estimated 9% cagr to
2017*
Demand driven by ASPAC*
Technology approved in US, Australia & Japan for
treating PCB contaminated oil
Re-used as new transformer oil
Virtual closed-loop with utilities
OEMs: ca. 40% demand
Base oil markets in inks, agriculture, mining & explosives
> 99% as new oil, no waste
Tests as better than new oil
Single-step re-refining process
Negligible emissions, carbon neutral oil
OECD: 75% rule new oil displacing old oil**
Direct from utilities: ca. 25%
Indirect channels in highly fragmented market
Alternatives: incineration, fuel additives, regeneration, recycling
Sales price:
Feedstock:
Gross margin:
Existing
capacity:
ca. US$1.00/litre*
ca. US$0.40-0.50/l
25% +
6.75m litres per
train 4 in US**,
1 in Australia

Rules of thumb:
*ICIS pricing
**planned expansion to 10
trains in US
Slide 4
* Source: Markets and Markets: Transformer oil market, Global Industry Trends & Forecast to 2017
** Source: Hydrodec estimates

Hydrodec Group plc

Commits feedstock to the partnership,
de-risks expansion
Trades Hydrodec NA for 50.1% of
business 240% of the size
Cash proceeds to be re-invested
in expansion

Growth in capacity from 27 million litres
pa. to 65 million litres pa; capex ca.
US$15m
Attractive IRR for Canton expansion in
excess of 25%
Establishes new recurring royalty for
technology licence
US partnership growing the core business
establishes a strategic business and revenue blueprint for growth
HYDRODEC
OF NA
HYDRODEC NA
50.1%*
Assets/Technology
G&S TECHNOLOGIES
49.9%*
Feedstock/Customers
Strategic partnership, largest
transformer oil re-refiner in US
Slide 5
*Ultimate ownership following expansion currently 75% (Hydrodec):25% (G&S)
Hydrodec Group plc

Industrial and lubricant oils material global market
Hydrodecs unique extended re-refining technology offers potential for
efficiency and quality benefits not available in existing recycling activity
COMPETITIVE
ADVANTAGE
ENVIRONMENT
SOURCES OF
USED OIL
USES
Global market in excess of US$30bn
UK low grade recycling market vs Europe, creates
ideal technology opportunity
UK lubricant base oil demand estimated at 700m litres pa
(predominantly imported)
UK used oil protocol regulates production & use of
processed fuel oil (PFO)
170m litres pa of PFO produced in UK*
Demand: industrial c. 80m litres; UK power c. 350m
litres; > 100m bunker fuel (shipping)
Europe is short feedstock for oil recycling - creates
additional demand
UK lags European & US recycling technology platform
supported by regulation
Hydrodec lubricant re-refining technology potential to
leapfrog existing Europe & US recycling technology
Potential for carbon credits from Hydrodec
methodology
Total waste lubricant oil in UK c. 350m litres pa
Collection based activity drives access to used oil
Active secondary market in bulk used oil in UK
UK example
Feedstock*:
Sales price:
Gross margin:
Rules of thumb:
HYDRODEC POTENTIAL
Sales price**: 75-90p/litre
Margin: 20-30p/litre
* Source: Oil Recycling Association estimate
Slide 6
18-20p/litre
32-35p/litre
5-7p/litre
*inc. collection cost
**Group II+/III base oil (ICIS)
Hydrodec Group plc

Acquired principal business & assets of OSS Group for 4.65m in Sep 2013
UKs largest collector, consolidator and processor of used lubricant oil and seller of
processed fuel oil (PFO) - sold c. 60m litres of oil in 2012
National network serviced by > 90 vehicles collects used oil and other garage
workshop waste; > 30,000 customers
Used oil converted into PFO - sold principally to UK power and industrial sectors
Senior management team led by Iain Lees joined Hydrodec together with 180
employees
OSS generated revenues of 28.5m and normalised EBITDA* of c. 1m in 2012
Expect EBITDA accretive to Hydrodec Group this year (after transaction costs) and
accretive to earnings overall in 2014
*adjusted to exclude exceptional and one-off items
UK acquisition a new market and business
a platform to build on a leading market position
Slide 7
Hydrodec Group plc

Delivering strategy
targeting outstanding growth and profitability
Clean-technology model with two core revenue streams:
Equity participation where advantaged
Royalty income through licencing
Delivering growth and profitability through transformer oil
Expansion through transformational US strategic partnership
Access new geographies via partnership, license or acquisition
Deleverage balance sheet & target positive EBITDA
Creating material future optionality through technology
Expand proven technology platform; proof of concept achieved
Extend proven business model; partnership or acquisition to secure
feedstock; invest and licence when proven
Re-defining a sector through technology and consolidation
Ground breaking recovery and quality from technology can transform sector
profitability and competitiveness
Fragmented market offers material options for consolidation

Slide 8
Hydrodec Group plc

Aiming to deliver outstanding growth and profitability
Creates leading re-refiner of waste and
PCB contaminated oil in North America
Secures feedstock for material growth
through value-chain integration
Alliance of best in class technology and
service provision creates compelling,
sustainable one-stop offer for customers
De-risks expansion to 65m litres p.a.
(increase of 140%), from 4 processing
trains to 10 by 2015
Establishes a recurring royalty for the
technology at 5% of revenues and
business model for growth

Access to Europe and key UK market
through a leading position in used oil
collection and processing
Access to value-chain and capability
creates a platform for SUPERFINE
TM
re-
refining and sales
Accelerates development and
commercialisation of Hydrodecs new
lubricant technology
Secures feedstock for lubricant re-refining
in UK
Creates options for consolidation into
Europe

Slide 9
execution of strategy delivered through a common transaction blueprint
Hydrodec of
North America
Q2 2013
Q3 2013
Hydrodec Group plc

European licence
New market license (Japan)
New technology design
Partial Full
Value chain
(partnership or acquisition)
Commission licenced plant
(new market/Europe)
License Phase 2 technology
Potential extension, in USA
+4 trains
Commission licenced plant
(new market/Japan)
Carbon certification
Commission 2nd plant
+4 trains US
Commission European plant
Staggered/full commission
Phase 2 technology
New market entry
(partnership/acquisition)
Developing a clear roadmap to value
H1 2013
H2 2013
H1 2014
H2 2014
H1 2015
H2 2015
2016
Transformer oil
Lubricant oil
Financial
US strategic partnership
(G&S Technologies)
Resolve balance sheet
Commission Canton
expansion (+2 trains)
Pilot plant construction
Target positive EBITDA
Value chain
(OSS acquisition)
has the potential for compelling double digit growth and returns
Delivered
Enabled
Protectable IP,
patent process
Slide 10
Q213
Q313
Hydrodec Group plc

Growth projects
a pipeline of further potential
Partnership opportunity in UK; providing infrastructure and capability to
develop transformer oil business by 2015, lubricant oil business by 2016

Scaling Australia for efficiency, with potential for lubricant oil partnership

Continue to seek partnership or consolidation options in Europe

Slide 11
Hydrodec Group plc

2010 2011 2012 H1 2013

Volume (litres m) 20.2 20.3 22.5 12.5

Revenue (US$m) 17.8 22.4 26.1 13.9
Gross margin 21.3% 22.2% 20.6% 25.2%
Operating EBITDA* (US$m) (3.3) (2.2) (3.0) (0.2)
Net debt (US$m) (19.2) (16.8) (22.6) (23.6)
* Before growth costs and share based payment costs
Hydrodec Group
eight years of revenue growth, poised for acceleration and positive
operating EBITDA

Strong trading in Q3 continuing momentum of H1
Operations in Australia and US both generating positive cash flow
2012 operating EBITDA reflects investment in strengthening business & management team
Investment in growth and technology development; new lubricant technology proof of
concept in Dec 2012
Strategic partnership in US announced in April 2013 creates a blueprint for growth
Slide 12
Hydrodec Group plc

OSS Group
transaction EBITDA expected to be accretive by year end,
earnings accretive 2014
FY12 financial performance impacted by margin squeeze
Reduced demand domestically led to increased export sales at reduced margins to
maintain cash flow
Focus on increased domestic demand offers potential for margin recovery
Strong growth potential in fuel sales and new product development & cross-selling
across the customer base
Creates a platform for further consolidation in the UK and into Europe
2010 2011 2012*

Volume** (litres m) 56.0 48.5 59.7

Revenue ( m) 24.9 25.1 28.5
Gross margin 31.8% 33.0% 22.0%
EBITDA ( m) 3.6 4.2 1.0
*per management accounts
**PFO, RFO and Black Gas Oil
Slide 13
Hydrodec Group plc

Objectives of the fund-raise
Slide 14
Reposition Hydrodec for the next stage of development
Enhance credibility with all stakeholders (customers, suppliers, shareholders)
Provide flexibility to finance assets appropriately at business, operating or asset
level
Sort out the balance sheet and capital structure
Raise additional capital for specific identified growth opportunities
Introduce a small number of new institutions onto the register
Hydrodec Group plc

Placing and open offer
Placing 20m
Open offer Up to 4.25m
7.5m revolving credit facility and 5m secured loan notes redeemed
through issue of new shares at placing price
Slide 15
deleveraging balance sheet and expansion capital
Use of Placing Proceeds
Repayment of ULS 13m
Expansion capital
Lubricant technology development 2m
Reposition technology to UK 0.5m
Growth projects 1m
Expanded UK business, with T-oil re-refining 3.5m
US expansion self-funded through strategic partnership 0m

20m
Hydrodec Group plc

Expected Timetable
w/c 7
th
October Road-show
14
th
October Placing letters sent out
15
th
October Placing letters returned
17
th
October Placing and Open Offer announced and shareholder circular posted
5
th
November Announcement of Open Offer take-up
General Meeting
6
th
November New shares admitted
Placing monies in

Slide 16
Hydrodec Group plc

Conclusion
strategy being delivered - repositioning for profitability and growth
Management with proven track record in oil industry; now delivering at Hydrodec
Established renewable transformer oil business with proven technology; EBITDA
positive at operating plant level
Strategic partnership in US; catalyst for growth, blueprint for future
Transformational new market entry in UK through acquisition of OSS, creates scale
and cash generation; platform for new technology & European consolidation
Strong drive to deliver positive EBITDA run-rate later this year (aided by accretive
OSS acquisition)
Global market potential in transformer oil and major opportunities with next stage
technology - robust potential for new protectable IP based on proven technology
platform
Proven economic and business model; attractive returns in transformer oil re-refining,
replicable in used lubricant oil market (>15x larger) with significant upside option
value
Continue to target value chain integration (feedstock) and capability - follow-on
pipeline of opportunities currently under consideration

Slide 17
Hydrodec Group plc

Page intentionally blank
18
Hydrodec Group plc

Appendices
Slide 19
Hydrodec Group plc

Hydrodec Group plc - management team
20 years board level
finance and
management
experience running
large, complex
international businesses
as well as small and
medium-sized ventures,
including a significant
period with GE Capital
Qualified chartered
accountant
Joined Hydrodec as
CFO in July 2012
Chris Ellis
Chief Financial Officer
30-year career with
BP plc
Leadership positions
including Group Head of
Strategy & Policy,
Global Head of Mergers
and Acquisitions, and
President and Chief
Executive of BP
Exploration North Africa
Joined Hydrodec as
CEO in January 2012
Ian Smale
Chief Executive
30 years at BP plc, with
executive level roles in
BP Chemicals and
Technology
Previously COO at a
US-based technology
start-up business in the
energy/waste sectors.
Joined Hydrodec as
COO in January 2012
David Robertson
Chief Operating Officer
10 years with Clough
Engineering responsible
for the environmental
technology and
engineering division
Joined Hydrodec in
2004 originally as Chief
Operating Officer,
assumed the role of
CEO in 2005
Became Head of
Technology and
International Projects
in January 2012
Mark McNamara
Head of Technology &
International Projects
Corporate partner at
Linklaters for 15 years
including as Global
Head of the Energy
and Utilities sector
Structured several
ground-breaking BP
transactions, including
the Amoco merger,
the Burmah Castrol
takeover and the
BP/TNK joint venture
Joined Hydrodec as
Head of Corporate
Development in
January 2012
Lee Taylor
Head of Corporate
Development
more than 125 years of collective experience
Slide 20
Hydrodec Group plc

Non-executive directors
Andrew is the co-founder of
Betfair, the worlds leading online
betting exchange and FTSE 250
constituent, having devised its
unique betting exchange model.
He was a director of the Betfair
Group from 1999 to 2010.
Andrew Black
Non-executive Director
Lord Moynihan was previously
Executive Chairman and Chief
Executive of Consort Resources
Limited and Executive Chairman
of Clipper Windpower Europe
Limited. Colin was a Member
of Parliament in the UK for 10
years, serving as Minister for
Energy from 1990 to 1992. Colin
was Chairman of the British
Olympic Association from
2005 2012.
Lord Moynihan
Chairman
Alan has 27 years experience in
the financial markets and from
2003 to 2010 he was Global
Head of Equities at Cazenove.
During this time he was
appointed a main board director
and was a member of both the
executive and operations
committees. He helped
spearhead the joint venture with
J.P.Morgan in 2005 and spent a
year as Head of EMEA Cash
Equities at J.P.Morgan
Cazenove, following the buyout
of Cazenove in January 2011.
Alan Carruthers
Non-executive Director
Gill brings with her a wealth
of public market experience,
having spent eight years at
Schroder Investment
Management as an analyst and
fund manager and later serving
as Investment Director on the
main board of Majedie
Investments PLC. She also
served as a non-executive
director of Majedie Asset
Management Limited where
she played a key role in setting
up the UK pension fund
management business in 2002.
Gillian Leates
Non-executive Director
Slide 21
Hydrodec Group plc

World-leading clean technology
Developed to treat PCBs
(polychlorinated biphenyls)
IP protected; secured by operational
know-how
Hydrogenation cleans and restores
the hydrocarbon molecule
New renewable oil with
semi-synthetic properties
Approved by regulatory authorities
in US, Australia and Japan
Proof of concept achieved in
lubricant oil application
simple chemistry and smart process engineering
Slide 22
Hydrodec Group plc

hjmgvbm
bnmnmb
nmn
Transformer oil treatment and processing
Applying Hydrodecs unique, proven transformer technology is efficient,
eliminates PCBs and produces high quality oil with no waste
PCB
Oxidation
Products
Oil Purity PRODUCT RECOVERY WASTE
Traditional Incineration N/A Oil is lost N/A Oil is lost
N/A Oil is lost

0%
Technology A
Base
catalysed
Chemical
Process
N/A Oil is lost

N/A Oil is lost

Fuel 0% YES
Technology B
Metal (Na)
Catalysed
Chemical
Process
N/A Oil is lost

N/A Oil is lost

Fuel 0% YES


One Step Catalytic Hydrogenation
New
Transformer
Oil
99%+ NO
No PCB
Oxidation
Products
Oil Purity PRODUCT RECOVERY WASTE
Technology C N/A
Filtration
Regeneration
Filtration
Regeneration
Recycled
Transformer Oil
<90% YES


One Step Catalytic Hydrogenation
New
Transformer
Oil
99%+ NO
Slide 23
Hydrodec Group plc

Industrial oil treatment and processing
applying Hydrodecs proven technology offers potential for material
efficiency improvements over existing best in class technology
Metals
Phosphate
detergents
Product
separation
Oil oxidation Oil purity
Traditional
Chemical
pre treat
Chemical pre
treat and solvent
with losses
Distillation -
Solvent washing
with losses
Company A
Chemical
pre treat
Solvent with
losses
Distillation -
Solvent washing
with losses
Company B
Chemical
pre treat
Chemical with
thin film
Distillation Hydrogenation
Company C
Chemical
pre treat
Sacrificial catalyst Distillation Hydrogenation
Company D
Chemical
pre treat
Sacrificial
Catalyst
Distillation Hydrogenation
POTENTIAL
Chemical pre
treat
One Step Catalytic Hydrogenation
NOTE: All systems contain fractionation processes
Slide 24
Hydrodec Group plc

Comparison of Hydrodec technology application
a differentiated quality and recovery opportunity
LEGEND
FULLY RECOVERED TO BASE OIL
PARTIALLY RECOVERED TO BASE OIL
FULLY RECOVERED TO FUEL
PARTIALLY RECOVERED TO FUEL
WASTED
Slide 25
CURRENT BEST AVAILABLE TECHNOLOGY
HYDRODEC
PROPOSED Company A Company B Company C Company D Company E
TYPICAL CONSTITUENTS
(Gp II/III) (Gp I/II) (Gp I/II) (Gp I/II) (Gp I/II) (Gp I/II)
To Asphalt To Asphalt To Asphalt To Asphalt To Asphalt
To Asphalt To Asphalt To Asphalt To Asphalt To Asphalt
Water, Coolants
Light Hydrocarbon, fuels
Detergents, Dispersants
OxidisedBase Oils
UnoxidisedBase Oils
Pyrolysis products , heavy base oils
Asphaltenes
Solids, Inorganic Additives
DRUM OF
WASTE OIL
Hydrodec Group plc

Specialises in collection and
recycling of hazardous
workshop waste and
provision of associated
waste management services
Collects c. 60 million litres of
waste oil per year
c. 40 million litres of PFO
produced annually also
RFO and Black Gas oil
Operates national service
managed through network of
waste transfer stations,
depots and processing
plants
> 95% of hazardous waste
handled is recycled or
recovered
OSS Group
waste solutions - refined
fuel division
workshop waste
parts washers
industrial services
turnover: 23.5m
total turnover (2012): 28.5m


Slide 26
Hydrodec Group plc

Locational Maps
Processing Plant/Depot
OSS Transfer Station
Call centre
Hydrodec, Canton Plant
G&S Technologies Plant
Slide 27
Ian Smale
Chief Executive
ian.smale@hydrodec.com

Chris Ellis
Chief Financial Officer
chris.ellis@hydrodec.com

London Office:
50 Curzon Street
London, W1J 7UW

Main: +44 (0)20 7907 9220

www.hydrodec.com

Hydrodec Group plc
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