1. 1.3 billion dollars 49% of our company 1 massive hostile takeover… …of.

2. NEW INNOVATION, NEW POSSIBILITIES. ™

3. Product Description Toy for kids Small variously sized, variously coloured blocks Interlock for easy and versatile building

4. About “LEGO” Offers a similar interlocking toy block product Lego Company has many significant disadvantages and set backs: –Manufacturing process –Certain qualities of their product –These problems lead to environmental damage and financial disadvantage later on SHMEGO is by far superior Overview of SHMEGO’s competitive advantages to come…

5. SHMEGO’s Proud Defining Feature Strive to be environmentally- conscious, sustainable & promote human health: –In our products –In our manufacturing process Why? –Leaders in Corporate Social Responsibility –Very economically efficient

6. SPECIFICS WHAT WE’RE DOING

7. Product Material ABS (acrylonitrile butadiene styrene) Plastic; Can be melted and injection-molded, comes in pellets Petroleum-based Non-biodegradable “Liquid Wood” (a.k.a ArboForm) Plastic alternative; Easy to melt can be injection-molded Plant-based –Lignin (plant sugar) –biodegradable

8. Acrylonitrile Butadiene Styrene Durable due to cross-linking between nitrile groups as a result of hydrogen bonding Very poor atom economy 2kg of crude oil 1kg ABS Formed by grafting styrene and acrylonitrile onto a polybutadiene matrix Very safe (tests show that no bricks have ever decomposed or released any chemical substances) Recyclable –Not always (propylene + ammonia) butadiene dehydrogenated ethyl benzene ABS

9. Acrylonitrile Classified as hazardous Volatility makes escape from waste sites a concern Composed of propylene, ammonia and air Requires sulphuric acid and results in ammonia sulphate Spills or leakages are hazardous Discarded cooling water (blowdown) contains toxins (such as those found in bactericides) 2.9 million tons of wastewater annually in the U.S. Waste gas is incinerated

10. Polybutadiene Hazardous waste materials Disposal: incineration plants produce water, carbon dioxide, nitrogen compounds (harmful)

11. “Liquid Wood” Produced from lignin –Waste product of paper production Separated using sulfite or sulfate Mixed with wax and fibers of plants, under high pressure to form a melted plastic High pressure hydrolysis reduces sulfur content and creates water proofing capabilities cross-linked organic polymer (provides strength) Lignin (naturally occuring) Monomer: phenyl propene Random structure

12. Product Life Cycles

13. Likely Fate of “Liquid Wood”: Biodegrading in compost/landfill Incinerated –CO 2 emitted as a product of incineration no more than the amount fixed by growing plants (which produce the lignin) Future recycling programs

14. A Clear Choice Use of liquid wood technology in the production of our blocks –Easier, greener to produce –Lignin is much cheaper raw material –Lignin can be obtained by utilising waste products –Does not use petroleum-based products –Biodegradable ™ But it doesn’t stop there…

15. SHMEGO’s Other Green Initiatives Green Packaging: –85% recycled cardboard –No plastic bags, info booklet online –Cubic shape (minimizing surface area to volume ratio) –Non-bleached paper product Hydrogen peroxide and other bleaching agents can be toxic Chlorinated bleaching agents can produce “dioxins” (polychlorinated dibenzodioxins) –Mutagenic, carcinogenic, teratogenic –Hydrophobic, stored in adipose tissue causing bioaccumulation in animals Chlorine free (TCF & ECF) agents are thought to minimize dioxin production Bleaching unnecessary step, waste of energy, not worth the risk –Product for children, safety is key Dioxin, toxic

16. Product Quality 99.83% satisfaction rate Virtually no difference in performance from LEGO Just safer, greener, cleaner, more responsible option Don’t take our word for it, try it out!