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There are substantial current and long-term market opportunities for Nexis Holdings in both the waste and housing industries.

Global Construction Industry

The global construction market in 2006 had a total market capitalization of USD $4.6 Trillion according to McGraw-Hill. This boom is being fuelled by private sector commercial developments and governments who are allocating larger amounts of their annual budgets on subsidized housing programs due to the chronic need for low-cost housing.

Governments are desperately seeking solutions to alleviate the chronic housing shortages with a recent example of the Venezuelan government who in 2006 contracted the Chinese government to build 20,000 low cost homes for USD $1.2 Billion. The United Nations Centre for Human Settlements (UNHABITAT) estimates that currently 1.3 Billion people live in sub standard housing; this figure is expected to grow by 500 million by 2020 if adequate housing solutions are not found.

Implications for Nexis Holdings

  • Nexis Holdings will be able to serve this demand more efficiently at a lower cost than competitors, through its technology (the Nexis System) and strategic alliance partners.
  • The Nexis System and 5Stargreen™ panels will provide governments with the ability to rapidly deliver high volume housing solutions in a cost effective manner without depleting their country’s scarce natural and economic resources.
  • The Nexis System represents an environmentally sustainable “Green” process poised to capture a lucrative share of the “Green” housing sector.

Global Waste Industry

Global waste industry revenues are in excess of USD $500 Billion p.a. (International Solid Waste Association, ISWA). Global prosperity has led to more consumption creating greater levels of waste generation (1 billion tons per annum (ISWA) must be disposed of a safe manner).

International treaties and restrictions on waste disposal are increasing the cost to those who produce or responsible for its disposal.

Implications for Nexis Holdings

  • The Nexis System and 5Stargreen™ panels enable governments to comply with their obligations under international environmental treaties and quotas, whilst providing an effective environmental solution for the community.
  • Nexis Holdings provides a more cost effective and desirable solution than the other methods in relation to dealing with solid waste and ultimately global waste management.
  • The conversion of landfill destined solid waste into structurally sound 5Stargreen™ building panels provides governments with a viable alternative to their current waste issues.

Who will benefit from Nexis Holdings’s Position in the Market?

Governments by being able to rapidly build low-cost, quality modular housing
Customers by being able to purchase a quality product at a low price (approximately 20% below current building materials)
Builders through easy assemble of panels, reducing labor costs and construction time
Environment by the Nexis System being a “Green” waste solution and re-use technology (each plant will be able to deal optimally with between 200 kilotons & 750 kilotons of waste p.a.)
Shareholders financially through an innovative technically proven product, with a substantial market growth and profit potential

Nexis Holdings Can Deliver These Outcomes Through A Focused And Effective Growth Strategy by Leveraging a Number of Business Drivers, Including:

  • Low-cost and high margins in both manufacturing and distribution businesses
  • Major capital expenditure in plants only being incurred to meet realized market
  • demand - ensuring optimized capital utilization
  • Prudent business strategy, in order to reduce operational and commercial risks
  • Multiple revenue streams, including accessing waste acceptance fees - resulting in the production of a commercially viable end product

Key Ongoing Revenue Areas

Waste Fees

  • Nexis Holdings will be paid a ‘gate fee’ at its plant by existing waste collectors, who would otherwise be paying such fees to landfill operators.
  • Fees will vary according to type of waste and the region.

Plant Output

  • Each Nexis Holdings plant will be paid for 5Stargreen™ products manufactured and delivered to the distribution and marketing arm.
  • A margin will be earned on the production price of each panel. This margin will be based on the production cost of standard 5Stargreen™ panels and on coated finishes. The resulting sale price of panels will vary according to the region and operating cost structure of plants within those regions.

Product Sales

  • The price of 5Stargreen™ panels will be subject to the regional variations in cost of production and market conditions.