Fuel Tech, Inc. · NASDAQ:FTEK
Fuel Tech — Investor Presentation (September 2021)
19 slides from Fuel Tech's investor presentation, Sep 13, 2021
Slide 1: Investor Presentation September 2021
Investor Presentation ‘September 2021
Slide 2: Safe Harbor
Safe Harbor ‘This presentation contains “Yontarc-ookrgsatemerts" as etna in Saction 21E ofthe Secures Exchange Act of 1934, as amercec, wtih are mace pursuant to the safe harbor provsons ofthe Prvate Secures tigation Reform Act of 1995 and rect Fel Techs curert expectations regarding future roth, re
Slide 3: Business Overview
Business Overview pufitecn ict Platforms That Offer Operational, Financial and Environmental Benefits ‘AirPollution Control FUELCHEM / Chemical Technologies ‘DGI™ Dissolved Gas Infusion Technology Low cap-ex solution for NO and Particulate Contro TRI Targeted n-Furnace Injection” Innovative alternat
Slide 4: Investment Highlights
Investment Highlights Global leader i trogen oxide (NO, reduction technologies with 1,200+ solutions installed wor dwide; also address SO,, ABS, PM2.5, and CO, ‘25%revenve increase 1H 2021. 1H 2020, margin improvement and sgifcanty narrowed losses FUEL CHEM revenue up 66% in 1H 2021, driver oy recen
Slide 5: Global Reach and Blue-Chip Clients
Global Reach and Blue-Chip Clients Solutions Installed in 26 Countries 1,200+ Installations Across Four Continents 180,500 MW 30+ Year History of Service and Accountability Frsténergy aust FS seo
Slide 6: Diverse, Customizable and Low Cap-Ex Solutions for Emissions Control
Diverse, Customizable and Low Cap-Ex Solutions for Emissions Control rh Teco >ASCR' : Advanced SCR: Combines LNB, OF, SNCR, AG, (656"+ taht NG: Armonia injection Grid > GS": Graduated Straightening Grid > HERTTigh Energy Reagent Tecnology” > NB: Low NO, Bumes 2 NO,OUT'SNCR using high moment injector
Slide 7: Innovative Technology, Engineering and Design
Innovative Technology, Engineering and Design 3-D Visualization Creates Custom Solutions Proprietary Software with trong] Protection; Patented Technology + Provides an intuitive interaction cetween the Models and Design Enginees Computational Fluid Dynamics (CFD) Model + Customized for each coier; 8
Slide 8: FUEL CHEM Segment
FUEL CHEM® Segment Boller effciencyimprovements that drive operational, financial and environmental benefits Reduces a variety of pollutants and Greenhouse Gases + Mereuty/S0, & Acs Plume lsves / Ammorim Bisulet (A38}/ CO and CO, 24/1/365 operational availabilty Increased revenues in 1H 2021, with h
Slide 9: Delivering Improved ROI
Delivering Improved ROI ‘vailabiity/ Reliability ficiency Gains/ Gains Heat Rate improvements \S Reduce Service interustion 0° degradation Deraes arising from sag shedding ad aurner anomaies ‘Water lance/water cannon usage Forced outages Planned outages Downtime for outages Increase MW per unit of f
Slide 10: TIFI BIO Program Treatment Benefits
TIFI® BIO Program Treatment Benefits Targeting the Furnace, Not the Fuel Yard Waste * Demo Waste * Logging & Mill Residue ‘Wood Chips * Switch Grass * Forest Residue nih fzcn Up to 40% Reduction in Downtime
Slide 11: FUELCHEM Mexico Long-Term Opportunity
FUELCHEM® TIFI® Targeted In-Furnace Injection™ Programs Mitigate SO, ng-Term Opportunity Punta rieta/ LaPai After TIFL Comisién Federal de Electricidad® * Pursuing opportunity with partner in Mexico to burn r) high-sulfur fuel oil produced by Pemex EMEX: * At present, this oils largely being burned
Slide 12: Air Pollution Control Segment
Air Pollution Control Segment Deferred decisions from potential customers driven by COVID-19 induced uncertainties Focused on SCR and ULTRA opportunities Monitoring state level regulatory changes that may drive retrofit activity Pursuing $40 - $50 M long-term project pipeline; targeting $5-$10 M of
Slide 13: Representative Solutions and Results
Representative Solutions and Results Puy = = Process = Gas Turbine and Small Gas Engine Marketplace demand for SCR and ULTRA syste criven by permis for new uit and retrofit regulatory requirements : ved with turbine and engine dai supplies, Heat Recovery team Generator manufacturers, an system integ
Slide 14: Flexible, Adaptable APC Solutions Reflect Changing Domestic Fuel Source Landscape
Our Flexible, Adaptable APC Solutions Reflect the Changing Domestic Fuel Source Landscape US. Electricity Generation by Fuel ource* oe a ee 4 @ = Natural Gas Coal Other ** st) rihitecn Fuel Tech Revenue by Fuel Source G 6 Ow NaturlGas Coal Other** >
Slide 15: DGI Dissolved Gas Infusion Technology
DGI™ Dissolved Gas Infusion Technology Exclusive license from Kadance Corporation for North America use of micro-nanobubble dissolved gas technology for specified markets Kadanceis active in municipal wastewater treatment, witha focus on delivering biological solutions to ths market Gl applicable fo
Slide 16: Highly Efficient Process for Wastewater Treatment
Highly Efficient Process for Wastewater Treatment rubtecn ‘SYSTEM BENEFITS: Supolemental aeration for ex'sting oneratins with avoided cacital cost Disso'ved oxygen reserve that can meet demand immediately for wastewater streams with process unsets, changing requirements, or short retention times Ope
Slide 17: Financial Overview ($ in Thousands)
Financial Overview {S in Thousands) 6Mos, | 6Mos. 2 Statement of Operations Summary 2201 | 022020 5 aa Revenues $5,218 $4aol_ | $10,251 | $8,179 Cost of Sales $2,685 $3,799 $5310 | $6,050 Seling, general and administrative expenses $2957 $2,785 $6087 | $6641 Operating loss (689) ${2,424) (1,846) | $
Slide 18: Summary
Summary ® Improved cost structure ($25 - $30 M breakeven), strong cash position, no debt * FUELCHEM: strong 1H 2021, expect FY 2021 to eclipse FY 2020 results; focus on new market segments and expanded geographies * APC: focused on global development for traditional markets with increasing focus on
Slide 19: Thank You
Thank You ES] Equity Group Vince Arnone Devin Sullivan Chairman, President and CEO Senior Vice President (630) 845-4500 (212) 836-9608 varnone@ftek.com dsullivan@equityny.com