November 14, 2012 Safe Harbor Statement All references to the - PowerPoint PPT Presentation

HCCI Operations Presentation To Analysts & Investors November 14, 2012

Safe Harbor Statement All references to the “Company,” “we,” “our,” and “us” refer to Heritage -Crystal Clean, Inc., and its subsidiary. This release contains forward-looking statements that are based upon current management expectations. Generally, the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," "will be," "will continue," "will likely result," "would" and similar expressions identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: the used oil re-refinery does not perform as anticipated; we are unable to generate sufficient funds to support our used oil re-refinery; we are unable to collect sufficient used oil to run our used oil re-refinery at full capacity; the used oil re-refinery may not generate the operating results that we anticipate; we do not realize the anticipated benefits from our acquisitions; our ability to comply with the extensive environmental, health and safety and employment laws and regulations that our Company is subject to; changes in environmental laws that affect our business model; competition; claims relating to our handling of hazardous substances; the limited demand for our used solvent; our dependency on key employees; our ability to effectively manage our extended network of branch locations; warranty expense and liability claims; personal injury litigation; dependency of suppliers; economic conditions including the recent recession and financial crisis, and downturns in the business cycles of automotive repair shops, industrial manufacturing business and small businesses in general; increased solvent, fuel and energy costs and volatility in the price of crude oil; the control of The Heritage Group over our Company; and the risks identified in our Annual Report on Form 10-K filed with the SEC on February 29, 2012 and subsequent filings with the SEC. Given these uncertainties, you are cautioned not to place undue reliance on these forward- looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ. The information in this release should be read in light of such risks and in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this release. HCCI Analysts/Investors Operations Presentation 1

Presentation Overview  Introductions  Environmental Services & Distribution Hub Review  Indianapolis Hub Tour  Oil Business & Review of Re-Refining Project  Virtual Re-Refinery Tour  Lunch  Re-Refinery Tour HCCI Analysts/Investors Operations Presentation 2

Environmental Services - Distribution Hub Operations 3

Environmental Service - Overview  Service Offers  Parts cleaning machines  Containerized Waste  Vacuum Services  Branches  71 Facilities  Primarily Sales & Service Activities  Branches Need Support for Non-Sales & Service Activities  Corporate Office  Operations Hubs HCCI Analysts/Investors Operations Presentation 4

Environmental Service Support Branches (71) Parts Cleaning Waste Drums Vacuum Service Parts Cleaning Machines, Clean Containers to Solvent, Aqueous hold waste Cleaners, Allied Products 3 rd Party Facilities Used Containerized Solvent, waste Damaged Machines Distribution Hubs (4) HCCI Analysts/Investors Operations Presentation 5

Distribution Hubs – Service Branches  Utilize a hub-and-spoke system to support branch operations Branch Branch HUB Branch Branch HCCI Analysts/Investors Operations Presentation 6

Distribution Hubs - Details Atlanta, GA Indianapolis, IN Philadelphia, PA Shreveport, LA Service Area Southeast Midwest Northeast Southern & (U.S.) Western Branches 13 30 14 15 Served Square feet 26,000 32,000 30,000 20,000 Rail Access Yes No Yes Yes HCCI Analysts/Investors Operations Presentation 7

HCC Branch Locations HCCI Analysts/Investors Operations Presentation 8

Management of Returned Materials - Solvent  Reuse Program  Used reuse solvent is then sold to end-users  Recycling Process  Used solvent designated for our Non-Hazardous Program is fed into our fractional distillation process and recycled HCCI Analysts/Investors Operations Presentation 9

Indianapolis Hub Tour 10

Oil Business 11

Used Oil Re-Refining U.S. Base Oil Supply by Source Used Oil Disposition in the U.S. (2) Re-Refining (Safety- Kleen) 5.5% Fuel Use Traditional Re-Refining 71% Refining Re-Refined (8 Others) 29% 89.4% 3.6% Re-Refining (HCCI/Plan) 1.5% Total Volume: 945 MM GPY Total Volume: 2 BB GPY (1) (1) Sources: Used Oil Re-refining Study to Address Energy Policy Act of 2005, Section 1838, U.S. Department of Energy, Office of Fossil Energy, Office of Oil and Natural Gas, July 2006, page 5-1 & 5-2 and Company estimates (data reported by DOE as of 1995 and 1996). (1) GPY is defined as gallons per year. Management estimates the “Re - Refined” segment to be 29%. “Other” segment consists of asphalt plant fuel, space heater fuel, boi ler fuel, steel mill fuel and other burning. (2) HCCI Analysts/Investors Operations Presentation 12

Oil Business Success Triangle Used Oil Collection Source: J. Chalhoub presentation to Fifth International Conference on Recovery and Reuse, November 1983, Las Vegas, NV. HCCI Analysts/Investors Operations Presentation 13

Re-Refining Technology and Operations HCC Highlights  Production of marketable lubricant  Our management team has designed, constructed and base oil requires hydrotreating, a operated the three largest process practiced at major refineries re-refineries in NA that adds significant complexity and representing 65% available capital cost capacity  Critical issues are operability,  HCC re-refinery capital cost economies of scale, and capital cost approx. $1 per annual  Low capital cost per gallon of input or gallon of nameplate capacity; 50 million gallons output equals competitive advantage  Several EPC firms willing to license  Start up six months ahead of schedule re-refining technology HCCI Analysts/Investors Operations Presentation 14

HCC Re-Refinery  Construction of the re-refinery was completed at the end of 2011  Production and sale of base oil began in Q1 2012 HCCI Analysts/Investors Operations Presentation 15

Used Oil Re-Refinery Yields 15.0% BS&W 12.5% Asphalt Extender 60.0% Fuel Base Oil 12.5% HCCI Analysts/Investors Operations Presentation 16

Increased Re-Refining Capacity  Working to obtain the air permit required to allow for additional input Expand Capacity of at the Indianapolis Facility Indianapolis Facility  Air permit would be granted by IDEM (Indiana Department of Environmental Management) Additional Re-Refining  Exploring multiple sites for a potential second facility Facility HCCI Analysts/Investors Operations Presentation 17

Re-Refinery Operations 2009 – 2012 18

Re-refinery Operations – 2009 - 2012  Siting and Design – 2009 - 2010  Staffing – 2010 - 2012  Construction & Handover – 2010 - 2011  First Year of Operation – 2011 - 2012 HCCI Analysts/Investors Operations Presentation 19

Siting Activities  HCC identified seven potential sites based on the following criteria  Access to transportation  Proximity to HCC’s market  Site availability  Capital costs (infrastructure/ site procurement)  Permitting HCCI Analysts/Investors Operations Presentation 20

Siting Activities  The candidate sites were compared by performing an extensive transportation study, modeling the projected volumes and collection points along with the costs for rail and OTR transportation.  The sites were also compared based on expected timing of permitting (air, land, etc.) and local regulatory requirements.  Local community acceptance of a facility such as ours played a significant role as we considered each potential site.  Indianapolis was the chosen site HCCI Analysts/Investors Operations Presentation 21

HCC Indianapolis Re-refinery - 2012 HCCI Analysts/Investors Operations Presentation 22

Design Activities  Safe operation was focus of design group (operations and engineering).  Process Equipment designed to meet all standards for safe operation at Operating Conditions  Process controls designed to eliminate process upsets  State of the art Fire Protection System HCCI Analysts/Investors Operations Presentation 23

HCC Indianapolis Re-refinery - 2012 HCCI Analysts/Investors Operations Presentation 24