Exhibit 99.1

 

LOGO

 

Shareholder Meeting

PrPresentation

June 2013

NASDAQ: ADES WWW.ADAES.COM


LOGO

 

T

Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain

circumstances. The forward-looking statements include statements or expectations regarding future

contracts, projects, demonstrations and technologies; amount and timing of production of RC,

revenues, earnings, cash flows and other financial measures; future operations; our ability to capitalize

on and expand our business to meet opportunities in our target markets and profit from our proprietarp pp g p p p y

technologies; scope, timing and impact of current and anticipated regulations and legislation; future

supply and demand; the ability of our technologies to assist our customers in complying with

government regulations and related matters. These statements are based on current expectations,

estimates, projections, beliefs and assumptions of our management. Such statements involve significant

risks and uncertainties. Actual events or results could differ materially from those discussed in the

forward-looking statements as a result of various factors, including but not limited to, changes in laws,

regulations and IRS interpretations or guidance, governmentfunding, accounting rules, prices, economic

conditions and market demand; timing of laws, regulations and any legal challenges to or repeal of

them; failure of the RC facilities to produce coal that qualifies for tax credits; termination of or

amendments to the contracts for RC facilities; decreases in the production of RC; failure to lease or sell

the remaining RC facilities on a timely basis; our inability to ramp up operations to effectively address

expected growth in our target markets; inability to commercialize our technologies on favorable terms;

impact of competition; availability, cost of anddemand for alternative tax credit vehicles and other

technologies; technical, start-up and operational difficulties; availability of raw materials and

equipment; loss of key personnel; intellectual property infringement claims from third parties;

seasonality and other factors discussed in greater detail in our filings with the Securities and Exchange

Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our

SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our

securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty

to update such statements unless required by law to do so.

©


LOGO

 

ADA ES I

Providing emission control solutions to the power industry for

th ADA-ES, Inc.

more than 30

years

? Portfolio of proprietary, low CAPEX technologies to meet pollution

control mandates. 17 patents issued or allowed

? Customers include most of the leading electric power companies

? Strong (and growing) cash flows from Refined Coal business through

2021

? Emission Control at early stage of compliance ramp. Near-term

equipment market, longer-term consumables supply market

? 10M shares outstanding, no significant LT debt, $22M in cash at 1Q13

-2-


LOGO

 

Near-term growth opportunities E i i C Refined Coal t l

?? 28 facilities eligible for Section 45 Tax Credits of

?? MATS rule took effect in 2012, compliance by 2015

?? MATS to create annual k t f 1 $2Bf Emissions Control Equipment Mercury Control Consumables

$6.59/ton (escalating) through 2021

?? 5 facilities leased/sold to

?? Rule creates $1B market for equipment market of $1-$2B for consumables to control mercury

?? ADA offers proprietary investors generating more than $50M in annual payments

?? Remaining facilities

?? ADA leading provider of equipment to meet MATS

?? Activated Carbon p p y chemical technology applied prior to combustion as alternative

to the use of activated

expected to be

leased/sold by YE2014

?? Expect $200M in annual

Injection Systems

?? Dry Sorbent Injection

Systems

carbon

?? Addressable market of

~600M tons of western

segment revenues at +90% coal per year

margin

?? Joint Venture:

42 5% ADA

?? Equipment backlog of $32.7M

at 1Q13, up from $25.3M at

4Q12 and $4.6M at 1Q12

42.5% 42.5% NexGen

15% Goldman Sachs

© 2013 ADA-ES -3-


LOGO

 

PORTFOLIO OF EMISSIONS CONTROL SOLUTIONS

SCRDe NOx

Flue Gas Desulfurization (FGD) Scrubber

Coal Bunker

Filter or ESP

Air Preheater

Boiler

M-ProveTM

Technology Refined Coal

Flue Gas

Conditioning

Activated Carbon

Injection (ACI)

Dry Sorbent

Injection (DSI) Refined Coal- $0 cost to utility

M-ProveTM Technology $0 capex,

$1-$4/ton reduced compliance cost

ACI/DSI- $1-$3M in capex

© 2013 ADA-ES, Inc.

Scrubber, SCR- $100M+

in capex

Large E&C

firms

-4-


LOGO

 

EXPECTED REVENUE MIX TRAJECTORY

GOLDMAN SACHS

15%

© 2013 ADA-ES, Inc. -5-


LOGO

 

REFINED COAL

CLEAN COAL SOLUTIONS, LLC (CCS)

CLEAN COAL SOLUTIONS JV

OWNERSHIP STRUCTURE

NEXGEN

ADA

42.5%

GOLDMAN SACHS

15%

42.5%

© 2013 ADA-ES, Inc. -6-


LOGO

 

Wingdings-RegularREFINED COAL: MONETIZATION DYNAMICS

.. Requirements to

commence operations:

.. Operating permits obtained

from each relevant state

CCS Receives:

~$3+/ton in consolidated

Each RC facility can be leased or sold to

generate revenue, or operated by CCS for

tax credit benefits to offset future tax

obligations

.. Approval from Public

Utilities Commissions (PUC)

in regulated states

I t $

payments, net $1.50-$2/ton to

ADA of pre-tax income after

payments to ADA’s JV partners

.. Approval from coal and

transportation companies

.. Approval from plant owners

.. Contracts negotiated and

i d CCS RC Investor

Receives: (a)$6.59/ton tax credit

through RC production, and (b) tax

deductions for rental, utility and

operating expenses signed among CCS, RC investor and power companies

.. 3 RC investors currently Utility

Receives: value of $ $

Pays: ~$1/ton to utility, ~$2/ton for

operating expenses and ~$3+/ton to CCS engaged .. Working with additional

RC investors for remaining RC facilities

1.00 - 4.00 / ton for emissions reduction Payment of ~$1/ton from RC investor © 2013 ADA-ES, Inc. -7-


LOGO

 

REFINED COAL:

FINANCIAL RESULTS OF RETAINING TONS AND TAX CREDITS

CCS may operate an RC facility, retaining the tax credits, prior to

finalizing contracts with the RC investor

$20

Ms

$15

Cost of retained tons

Tax credits generated

Retained RC Results (CCS)

$5

$10

$0

1Q12 2Q12 3Q12 4Q12 1Q13

$

Cumulative Tax Credits Generated (CCS)

Ms

Note: ADA’s 42.5% share of tax credits

included in net deferred tax assets NDTA

$20 $30

$40 $50 60

© 2013 ADA-ES, Inc. -8-

assets. are offset by a valuation allowance as

discussed in the footnotes to the financial

statements. $0 $10 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13


LOGO

 

Update on 28 Refined Coal Facilities

5 facilities

generating

$ 50M + in

6 facilities in various stages of negotiations.

Expected 12 facilities to use M- 45-PC technology. First expected to be operating in 2H13

annual revenues 1 facility to be leased/sold in 2013/2014 1 facility currently currently retained, expected to be leased in

1 facility with lease contracts finalized retained (since early June),

expected to be

leased in early

~15MT/yr

2Q13

2 facilities

retained

by CCS

finalized,

waiting on PSC

approval to

begin operation

~22MT/yr

3Q13 ~60MT/yr

~4MT/yr

~2MT/yr

~3MT/yr ~3MT/yr

© 2013 ADA-ES, Inc. -9-

Operating Not currently operating


LOGO

 

CalibriFinancial Impact of RC Operations

Expected consolidated gross profits ($000)

Facilities Status 2Q13E

RC Facilities # 1]7

5 facilities leased/sold at 1Q13,

2 retained by CCS

$11.6 $14.0

3Q13E

RC Facility #8

Operated by CCS, expect to be

leased by the end of 2Q13

($2.9) $3.5

RC Facility #9

Not operating, contracts are final,

waiting for PSC approval

$0.0 $3.4

RC F ili #10

Commenced operations by CCS in

($0 6) Facility $1 0 *

p y

June, expect to be leased in 3Q13

0.6) 1.0 RC Facilities #11]28

Not operating, certain facilities are

in various stages of negotiation

$0.0 $0.0

$8.1 $21.9

* Expect $2.5M of Gros s Margin per quarter beginning 4Q13

Note:

ADA 42.5% of Clean Coal Solutions

Consolidated Gross Margin from RC

© 2013 ADA-ES, Inc. -10-

owns


LOGO

 

EMISSIONS CONTROL

ACTIVATED CARBON INJECTION SYSTEMS DRY SORBENT INJECTION SYSTEMS

Installed/installing ACI systems on over 60

boilers at coal-fired power plants Sold through our BCSI subsidiary

GOLDMAN SACHS

15%

© 2013 ADA-ES, Inc. -11-


LOGO

 

ArialSegoeUIEMISSION CONTROL ($ IN MILLIONS)

EC Revenues and Backlog

. MATS market developing as expected

. $1-$2B market for consumables to control mercury starting in 2016

Recently announced more than . $30M in new awards

. ADA is prepared for this market

- Supply agreements already in place, engineering capabilities expanded

- Ample (and growing) cash balance

© 2013 ADA-ES, Inc. -12-


LOGO

 

ACI MARKET SHARE

Boilers treated by ACI systems

© 2013 ADA-ES, Inc.

Source: ICAC

-13-


LOGO

 

ArialMERCURY CONTROL: M-PROVETM TECHNOLOGY

. Patented technology designed to enable Western

coals to burn with lower mercury emissions

– U.S. burns up to 600M tons of Western Coal per year

. $1.00-$4.00/ton in benefits to customer

. Technology has been licensed to Arch Coal to apply

to their PRB coals at the mine

– Royalty agreement: payments to ADA of up to $1.00/ton

based on a portion of the premium paid on treated coal

sales

. ADA retains rights to apply technology at power

plants

. Initial market: states with mercury regulations

already in place

. MATS expected to create market starting in 2016

. Continued demonstration of technology to

customers

© 2013 ADA-ES, Inc. -14-


LOGO

 

ArialSegoeUICO2 CAPTURE: OVERVIEW

. Developing proprietary solid sorbent capture

technology to capture CO2 from flue gas in

conventional coal-fired boilers

. DOE and industry funding:

- Phase I - $3.8 M R&D at 1 KW pilot plant

completed in 2011

Ph II $20 5 M 51 h - Phase - 20.5 M, 51-month contract to scale-up

technology to 1 MW

• Entered Fabrication and Construction phase of 1 MW

plant in June 2012, estimated completion in October

2013

• Testing in 2014

. Advantages over competing technologies:

- For customer: lower cost and less parasitic energy

- For ADA: continuous revenues from sale of

proprietary chemical sorbents

© 2013 ADA-ES, Inc. -15-


LOGO

 

ArialK T k

. RC opportunities expected to provide substantial growth in

Key Takeaways

pp p p g

revenues, profits and cash flows in 2013, and consistent

revenue streams through 2021

. MATS compliance requirements are driving significant

near-term market for equipment

. M-ProveTM technology and royalty opportunity expected to

produce additional growth beyond MATS equipment market

. Developing solid sorbent capture technology to capture

CO2 from flue gas in conventional coal-fired boilers

© 2013 ADA-ES, Inc. -16-


LOGO

 

REORGANIZATION STRUCTURE

Advanced Emissions Solutions,

Inc.

Nasdaq: ADES

(Holding Company)

Operating Companies

ADA-ES, Inc.

BCSI, LLC

Clean Coal Solutions, LLC

42 5% ADA ES Inc

100% owned ADES

100% owned ADES

42.5% owned ADA-ES, Inc.

-17-


LOGO

 

BALANCE SHEET HIGHLIGHTS

3/31/13 12/31/12 $s in Millions

Cash & Cash Equivalents $21.9 $9.7

Working Capital, net of

deposits and deferred

revenues

$22.1 $1.6

Long-term Liabilities, net

of deferred revenues* $5.7 $5.6

Shares Outstanding 10.1 10.0

*Long-term liabilities at 3/31/13 include $13.3M of deferred revenue related to Clean Coal, as

shown on the balance © 2013 ADA-ES, Inc. -18-

sheet


LOGO

 

Wingdings-RegularFINANCIAL SUMMARY:

Q1 2013 VS VS. Q1 2012

$ in Ms 2013 2012

Revenues $68.3 $18.2

Gross Margin / Margin %, Including Coal Sales $9.7 / 14% $4 / 22%

Adjusted Gross Margin / Margin %, Excluding Coal

Sales and Retained Tonnage Operating Expense* $16.2 / 70% $6.4 / 76%

.. Retained tonnage has a dominating impact on GAAP Income Statement

.. $45M of 1Q13 revenues and costs are due to coal sales and purchases relating to retained RC

Net Income (Loss) $(2.2) $(2.4)

~facilities

.. ~$6.5M of 1Q13 operating expenses are due to ~1.9M retained tons, which generated $12.6M

in tax credits

.. Financial benefit of tax credits generated will not been seen until future quarters due to

valuation allowance

*See appendix for explanation of non-GAAP financial measures

© 2013 ADA-ES, Inc. -19-


LOGO

 

Calibri-BoldCalibri-ItalicArialSegoeUICalibriREFINED COAL

For the Three

Months Ended

$(000) 2013 2012 31]Dec]12

Rental income 12,2$ 13 $ 5,391 $ 9,802

Coal sales 44,960 9,773 51,365

For the Three Months Ended

March 31,

Other income 950 10 11

Total RC Revenues $ 58,123 $ 15,174 $ 61,178

Cost of Revenues $ 51,469 $ 12,043 $ 57,984

Gross Margin $ 6,654 $ 3,131 $ 3,194

Gross Margin Percentage 11% 21% 5%

Adjusted Gross Margin* $ 13,144 $ 5,572 $ 9,656

Adjusted Gross Margin Percentage* 99% 99% 98%

See Appendix for explanation of non]GAAP measures.

* Adjusted gross margin and adjusted gross margin percentage excludes coal sales and raw coal purchases and retained tonnage operating expenses.

Operating Statistics (millions)

Tons for leased facilities 3.2 1.4 2.5

Tons retained 1.9 0.3 2.1

Total tons treated 5.1 1.7 4.6

T C dit t db t i dt $ 12 6 $ 1 7 $ 13 3

. CCS operated 8 facilities in 1Q13, 5 of which were leased/sold to RC investors at Quarter-end

- In 1Q13 the three+ RC facilities operated by Clean Coal incurred operating expenses of $6.5M but generated $12.6M

Tax Credits generated by JV ] retained tons 12.6 1.7 13.3

Tax Credits to ADA (42.5%) $ 5.4 $ 0.7 $ 5.7

three in tax credits

- The operation of these units included $45M in pass through coal purchases/sales

© 2013 ADA-ES, Inc. -20-


LOGO

 

Appendix

© 2013 ADA-ES, Inc.


LOGO

 

NON-GAAP FINANCIAL MEASURES

© 2013 ADA-ES, Inc.


LOGO

 

Wingdings-RegularBusiness Segments

Refined Coal

.. CyCleanTM, M-45TM and M45-PCTM .. Regulations have created 1B market for .. Developing technology to capture

Emissions Control

Systems CO2 Capture y

technologies reduce mercury and

NOx emissions and qualify for

Section 45 Tax Credits of $6.59 per ton for next 8 years

.. Each facility can be leased or sold g $

MATS technologies - Activated Carbon Injection: control mercury

- Dry Sorbent injection: control acid gases p g gy p

CO2 from flue gas in coal-fired boilers

.. Ongoing research partnership with

Department of Energy and Southern

y Company

to generate revenue or operated by

Clean Coal for tax credit benefit

.. 42.5% stake in Clean Coal Solutions

JV with NexGen & Goldman Sachs

g

- Carbon Mitigation strategies for Hg

re-emissions in WFGD

- Non-SO3 based LFGC Technology for

ESP resistivity enhancement

.. Coal treatment technology to reduce

.. 1MW pilot plant under

construction. Testing in 2014

mercury emissions; licensed to Arch Coal

© 2013 ADA-ES, Inc. Confidential and Proprietary Information


LOGO

 

ArialCoal Energy

SOURCES OF U.S. ELECTRICITY, 2011 19% 13% 1%

. Coal expected to provide ~ 40% of

America’s electricity in 2035

according to Department of Energy

. 1,200 existing coal-fired power plants

i th US t th j it f

25% 42%

in the generate the majority of the nation’s electricity, and consume

~ 900M to 1B tons of coal each year

. EPRI estimates that the coal-fired

power industry will invest $275 billion

Coal

in retrofits through 2035

. Lower coal prices benefit our

customers

. 11 new coal-fired power projects

Natural Gas

Nuclear

currently have permits and are

expected to begin construction in the

next year

. The energy in America’s recoverable

S U S EIA M h 2012

Renewables

Petroleum

gy

coal reserves is equivalent to 1 trillion

barrels of oil – about equal 2/3rds of

the world’s known reserves

. In order to maintain its leadership

position, coal must burn cleaner Source: U.S. EIA, March © 2013 ADA-ES, Inc.


LOGO

 

PORTFOLIO OF EMISSIONS CONTROL SOLUTIONS

SCR

DeNOx

Flue Gas Desulfurization

(FGD) Scrubber

Coal

Bunker

Filter

ESP

Air

Preheater or Boiler

Scrubber

Additive M-Prove TM

Technology

Refined Coal Flue Gas

Conditioning

Activated Carbon

Injection (ACI)

Dry Sorbent

Injection (DSI)

© 2013 ADA-ES, Inc.


LOGO

 

ArialSegoeUIRefined Coal: Introduction & Overview

. The American Jobs Creation Act of 2004, Section 45 of the IRC: contains

provisions to incentivize the production of pollution mitigating Refined Coal

(RC) via annually escalating tax credits per ton of coal burned. RC reduces

mercury by 40%+ and NOx emissions by 20%+ when that coal is burned.

. Clean Coal Solutions (“CCS”) JV offers three technologies that produce Section

45 Refined Coal

- The CyCleanTM, M-45TM and M-45-PCTM technologies provide on-site, proprietary pretreatment

to Powder River Basin (PRB) and Lignite coals treatment for use in cyclone boilers,

circulating fluid bed boilers and pulverized coal boilers.

Key Dates

. June 2010: Clean Coal Solutions commences operations at first two RC facilities

. December 2010: Congress extends “placed-in-service” deadline for new RC

facilities to 12/31/11

. January - December 2011: CCS fabricates, installs and “places-in-service” 26

additional RC units able to qualify for Section 45 tax credits

. June 2011: an affiliate of Goldman Sachs purchases a 15% stake in CCS for $60M

. 2012 - 2014: CCS focused on capturing the value of Section 45 tax credits

© 2013 ADA-ES, Inc.


LOGO

 

ArialSegoeUIQ1 2013 Refined Coal Highlights

. A 5th RC facility sold to a new RC investor- $20M upfront

payment, $ 5M more with p y , receipt of PLR in 2013

- The 5 leased/sold RC facilities are expected to produce

more than $50M in annual revenues

. Restructured leases with our first RC investor

. M-45-PC TM technology demonstrated successfully at

several sites

- Tested at four plants with six boilers

- First PC facility expected to be operating as early as the

2H13

© 2013 ADA-ES, Inc.


LOGO

 

REFINED COAL:

FINANCIAL IMPACT OF CONVERTING A RC FACILITY FROM CCS OPERATION

TO 3RD PARTY RC INVESTOR

3rd CCS Consolidated financial example for a 3 MT/yr facility

$10

$15 $12M/yr

~$9M

CCS Self Monetization 3 Party RC Investor

$5

ons

Operating

CAPEX

$-

Millio

($2M)

Payment from

RC investor

Expense

Cash at Closing

( Pre-Paid Rent)

$(10)

$(5)

($9M/yr)

)

$(15)

© 2013 ADA-ES, Inc.


LOGO

 

CONTACTS

Michael D. Durham, Ph.D., MBA

President & CEO

Graham Mattison

Vice President, Investor Relations

(646) 319 1417

Mark H. McKinnies

SVP & CFO

646)-319-graham.mattison@adaes.com

© 2013 ADA-ES, Inc.