Smart EOL™ Case Study: Reducing Waste and Increasing Profitability CRRA 40th Annual Conference & Roadshow Case Study: Reducing Waste and Increasing Profitability Mr. Michael Gross Dr. Ramesh Srinivasan August 10, 2106 Smart EOL™

Outline Zanker Recycling Challenges &Opportunities Smart EOL™ Case Study: Financial & Environmental Impacts Extended Capabilities of Smart EOL Q&A

Zanker Recycling: Background Full Service: Resource Management Composting/Recycling Landfill Operations: Demolition Debris Recycling Construction Waste Processing Asphalt Shingle Processing Concrete Recycling Sheetrock Recycling Wood Waste/Brush Recycling Sales of Landscape Products 900,000 tons / year

Zanker Recycling: Material Recovery Processes

Zanker Recycling: C&D Line

Zanker Recycling: Material Recovery Processes

Zanker Recycling: Material Recovery Processes

Zanker Recycling: Challenges Lack of reliable information: Operation and Material Specific Inputs and Outputs (tonnage, revenue) Flow of materials from one operation to another Multi-period trends of materials flow Commodity Prices and Trends in the market place Creates Negative Impacts Diminishing Profits Reduced Competitiveness Declining Recycling Rates

Zanker Recycling: Operating Principle Challenge “industry standard” Reshape what is expected from waste recyclers Maximize Diversion Operations add: Financial Value Social Value Environmental Value

Zanker Recycling: Solutions Updated Scale System Software Increased reliability of data

Zanker Recycling: Solutions Piloted Smart EOL Cloud Software Inbound & Outbound Materials: Trends on Volume, Revenue, Price Aggregations of Material Categories Mix % for Different Materials/Categories Multi-site Visibility Pilot Completion January ‘16

Critical Decisions for a MRF How should the inbound materials be priced? Outbound Tonnage, Revenue, Price Inbound Freight $ Inbound Tonnage, Revenue, Price

Critical Decisions for a MRF When price for outbound material increases, MRF can afford to decrease the price of inbound materials, and still be profitable ??

Critical Decisions for a MRF When price for outbound material decreases, MRF must increase the price of inbound materials in order to be profitable. ??

Critical Decisions for a MRF It is challenging to determine prices for inbound materials in the real environment with multiple inbound/outbound materials ????

Smart EOL Extended Capabilities

Smart EOL Extended Capabilities 6. Transactional Pricing for Profitability 1. Transactional Pricing for Profitability Inbound Freight $ 5. Respond to Commodity Prices 2. Bundle Inbound Freight 3. Costing Accuracy 4. Bundle Outbound Freight

Smart EOL Extended Capabilities See your costs and profits

Case Study Results

Zanker Recycling: Opportunities

Zanker Recycling: Opportunities

Zanker Recycling: Opportunities – Problem Finding

Case Study: Financial Impacts Visibility to revenues and costs resolved accounting issues Better data management resulting in: Streamlined expenses Increased profits Investing in new recycling operation at a cost of $2.2M. Expected to reduce expenses, increase profits, increase recycling rate by 5% (at throughput of 900,000 tons per year)

Case Study: Environmental Impacts Zanker’s output results in the following benefits (Study Period: Nov 2015 – June 2016)* Total Change in GHG Emissions (MTCO2E): - 326,000 Roughly equivalent to: Removing annual emissions from: 69,000 Passenger Vehicles Conserving 3.7M Gallons of Gasoline Conserving 13.6M Cylinders of Propane Used for Home Barbecues Total Change in Energy Use (million BTU): - 3.9M Roughly equivalent to: Conserving 35,000 Households' Annual Energy Consumption Conserving 666,000 Barrels of Oil Conserving 31M Gallons of Gasoline *Assumptions: Calculations Based on EPA’s WARM Model. Full scale estimation for Cope Recycling will be attempted. Electricity Grid Mix, Landfill Conditions: National Average Distance Traveled (inbound + outbound): 20 miles; this can be varied.

Zanker Smart EOL Implementation: Next Steps Increase number of sites where Smart EOL is deployed Increase number of users

Thank You! Questions? For a 30-day Free Trial of Smart EOL Contact: Ramesh Srinivasan 408-394-5730, info@eco-catalyst.com