Liqtech International, Inc. · NASDAQ:LIQT
Liqtech International — Investor Presentation (September 2022)
27 slides from Liqtech International's investor presentation, September 2022
Slide 1: LIQT – Investor Update
LIQT – Investor Update September 2022
Slide 2: Introduction
Introduction Fei Chen, President & Chief Executive Alex Buehler, Board Member Simon Stadil, Chief Financial Officer Officer Served as Interim CEO from March 18 - September 11, 2022 Served as CFO since November 23, 2021 Appointed as CEO on September 12, 2022 Background: Background: Background: improv
Slide 3: Agenda
Agenda • LiqTech at a Glance • Recent Events • Financial Highlights • Appendix • ESG Commitment • Case Studies • CEO Biography improving our future 3
Slide 4: LiqTech at a Glance
LiqTech at a Glance Global Operations in $18m 250+ 35 + 2 0 2 1 Revenue Clients Served Ac r o s s t h e G l o b e Countries 3 +130,000 ft2 100+ Manufacturing Footprint Employees Locations 300+ 2,500,000+ 20+ Diesel Particulate Filters Years of Filtration Systems Installed Sold Experience improving o
Slide 5: Business Highlights
Business Highlights Scalable Business Differentiated Technology Material Science Advantage Compelling Value Proposition Buoyant End Markets Opportunity for Improvement improving our future 5
Slide 6: Differentiated Technology
Differentiated Technology Water Treatment Systems Silicon Carbide Ceramic Filters Diesel Particulate Filters Crossflow Filtration System Tubular membranes Microfiltration System improving our future 6
Slide 7: Buoyant End Markets
Buoyant End Markets Historical Current and Future Focus Transportation & Machinery Oil & Gas Diesel Particulate Filters for large Produced water, MEG recovery, and vehicles, heavy offroad vehicles, and injection water. other machinery. Water Treatment Marine Pool filtration, fish farming, pre- Marin
Slide 8: Compelling Value Proposition
Compelling Value Proposition Agile ceramic membrane ultrafiltration system for different end markets – modular and easily scalable for future growth. System Advantages: • Unique ceramic membrane technology • Simple system to maintain and use • Fully automated system with remote monitoring • Flexible
Slide 9: Scalable Business
Scalable Business Streamlined Ample production organization capacity Consolidated sales and marketing efforts New production equipment Proven technology improving our future 9
Slide 10: Material Science Advantage
Material Science Advantage • More than two decades of manufacturing experience • Unique advantages of silicon carbide ceramic membranes • Able to withstand all types of liquids regardless of temperature and pH • Consistent permeate quality regardless of feedwater Unmatched Flux Chemically Inert • Ex
Slide 11: Opportunity for Improvement
Opportunity for Improvement Organizational Financial • Elevate contribution margins through price and • Appoint sales leadership mix • Develop sales organization • Achieve breakeven profitability • Drive sales productivity • Reinforce balance sheet Commercial Operational • Build market share in exis
Slide 12: Agenda
Agenda • LiqTech at a Glance • Recent Events • Financial Highlights • Appendix • ESG Commitment • Case Studies • CEO Biography improving our future 12
Slide 13: Recent Events
Recent Events • CEO transition with Fei Chen as President and CEO • Corporate reorganization and streamlining Organizational • Headcount reduction of roughly 25% • $26m of public equity raise and $6m of private debt placement • Retirement of convertible note Financial • Rationalization of Capex / +$
Slide 14: Recent Events - Continued
1 DK1 Electricity price per MHW Recent Events - Continued Current spot price +240% vs January • Commissioned first commercial-scale oil & gas system in the Middle East Commercial • Commissioned first acid filtration system in the U.S. Market data | Nord Pool (nordpoolgroup.com) 2 validating value pr
Slide 15: Agenda
Agenda • LiqTech at a Glance • Recent Events • Financial Highlights • Appendix • ESG Commitment • Case Studies • CEO Biography improving our future 15
Slide 16: Revenue Performance and Outlook
Revenue Performance and Outlook External Revenue $m Outlook “Due to the worsening energy crisis in Europe, continued supply chain disruptions, and customer-imposed delays caused by macro- 25,0 economic uncertainty, the Company believes that approximately $3 22,5 to $4 million in expected orders are
Slide 17: Revenue Breakdown
Revenue Breakdown Commercial efforts have successfully diversified the LiqTech business across applications, geographies, and industries with more than 200 clients serviced during 2021/22 Revenue by Segment Revenue by Geography Opportunity Pipeline 0% 3% AMERICAS 16% Systems 26% 25% 7% 15% 32% 63% A
Slide 18: Q2 Financial Results and Q3 Outlook
Q2 Financial Results and Q3 Outlook Quarterly Revenue $m Q2 results • Q2 2022 revenue of $5.0 million, an increase of 25% from Q2 2021 and 38% sequentially 5,0 • Gross margin of 3.0%, compared to 8.0% in Q2 2021 4,0 3,6 • Net loss of $(6.5) million that included $3.8 million of non- 3,0 recurring co
Slide 19: Balance Sheet Strength
Balance Sheet Strength Successful refinancing and restructuring efforts completed in H1 2022, significantly improving capital structure and cash balance Reported Cash and Net Cash* - $m Balance Sheet Composition Capital Structure Capital Structure Q1 2022 Q2 2022 19,7 Equity Equity 22% 17,5 Long-ter
Slide 20: Agenda
Agenda • LiqTech at a Glance • Recent Events • Financial Highlights • Appendix • ESG Commitment • Case Studies • CEO Biography improving our future 20
Slide 21: ESG Commitment
ESG Commitment • The impact on the environment is one of our main challenges Ensure availability and sustainable management of • Minimize the impact from some of water and sanitation for all the most polluting industries • Shipping, power plants, oil, and gas, etc. • Ensure progress and Take urgent
Slide 22: Business Case – Acid Purification
Business Case – Acid Purification Phosphoric Acid Plant, US Application: • Remove solids from phosphoric acid • Obtain a clean permeate acid to protect downstream carbon beds • Permeate production: 100gpm (22.7m3/h) Product: • 6 pcs of feed units • 12 pcs of filtration skids Value Propsition: • Six-
Slide 23: Business Case – Aquifer & Produced Water
Business Case – Aquifer & Produced Water Middle East Oil & Gas Background: • Large amounts of produced water pumped to local disposal wells • Reduction in available disposal wells and increased water scrutiny • Contamination from disposal wells to aquifer water Application: • Achieve high-quality wa
Slide 24: Business Case – Commercial Pool Filtration
Business Case – Commercial Pool Filtration Stretford Sports Village, UK Background: • Existing steel filters had reached the end of their life and needed replacement Application: • Refurbishment of pool filtration system Product: • 6 membrane microfiltration systems Value Proposition: • Excellent wa
Slide 25: Business Case – Marine Black Carbon
Business Case – Marine Black Carbon China Marine Application Background: • Inland waterway ships in Asia adopting regulations to remove Black carbon/soot particulates from heavy engines • Fine-particulate particles (PM 2,5) contribute to air pollution with two-weeks lifetime in the atmosphere Applic
Slide 26: Biography – Fei Chen
Biography – Fei Chen CAREER BEFORE LIQTECH • 2013 – 2022: Topsoe • Group Senior Vice President • Vice President, Licensing and Project Sales • Vice President, New Business Research and Development • 2010 - 2013 Grundfos - Innovation Platform Director ACADEMIC BACKGROUND • 2008 - 2010 Coloplast - Dir
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