Fuel Tech, Inc. · NASDAQ:FTEK
Fuel Tech — Investor Presentation (March 2019)
25 slides from Fuel Tech's investor presentation, Mar 27, 2019
Slide 1: Investor Presentation March 2019
Air Pollution Emissions Control Chemical Technologies Water Treatment Solutions Investor ©2019 NEXIEN BIOPHARMA INC. All rights reserved. Presentation March 2019 Nasdaq: FTEK
Slide 2: Safe Harbor
Safe Harbor NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 an
Slide 3: Business Overview
Business Overview Emissions Control and Water Treatment Solutions Percentage of 2018 Revenues Air Pollution Control (APC) Robust suite of low cap-ex NOX and Particulate Control solutions that reduce emissions from 30% to 85% Capital project sale, typically fixed-price, with turn-key capabilities 70%
Slide 4: Investment Highlights
Investment Highlights 2018: Returned to operating profitability after completing 25% three-year initiatives that reduced corporate costs and Increase in revenue improved efficiencies 2018 vs. 2017 2019: Suspension of poorly performing China operations 11% underway; expect to eliminate annual operati
Slide 5: Finance Overview
Finance Overview Higher Revenues, Improved Cost Structure Drive Return to Profitability $ in MMs Total Revenue SG&A Operating (Loss) Income (1) $55.2 $56.5 $45.2 $25.6 $20.9 $0.1 $18.6 2016 2017 2018 $(7.1) 2016 2017 2018 2016 2017 2018 $(14.6) (1) From continuing operations Select Financial Metrics
Slide 6: Innovative Technology, Engineering and Design
Innovative Technology, Engineering and Design 3-D Visualization Creates Custom Solutions Proprietary Software with Strong IP Protection; Patented Technology Provides an intuitive interaction between the Models and Design Engineers Computational Fluid Dynamics (CFD) Model Customized for each boiler;
Slide 7: Global Footprint
Global Footprint Solutions Installed in 26 Countries 1,200+ Installations Across Four Continents 30+ Year History of Service and Accountability 7
Slide 8: Products and Services
Products and Services Diverse, Customizable Portfolio of Low Cap-ex Emissions Control Solutions Fuel Tech Technologies ASCR ® : Advanced SCR: Combines LNB, ULTRA ® : Safe Ammonia Generation TIFI® Targeted In-Furnace Injection™: OFA, SNCR, AIG, GSG™ + Catalyst System Chemical injection programs used
Slide 9: Blue Chip Client Base
Blue Chip Client Base U T I L I T Y I N D U S T R Y G L O B A L 9
Slide 10: Geographies and End Markets
Geographies and End Markets FTEK Solution Geography End Market Deployments/MW U.S. China ROW Utility Industrial SNCR 570+ / 51,300 57% 29% 14% 68% 32% FUEL CHEM® 110+ / 21,900 84% 16% 67% 33% ULTRA® 77% 17% 6% 87% 13% 250+ / 27,700 Combustion Modifications 110+ / 16,400 89% 9% 2% 74% 26% SCR, ASCR,
Slide 11: Air Pollution Control Segment Overview and U.S. Market Drivers
Air Pollution Control Segment Overview and U.S. Market Drivers APC Revenues Pursuing global sales pipeline of ~ $100 M covering ($ in MMs) entire technology suite $38.4 Capitalizing on the flexibility of our solutions portfolio as the fuel mix remains in favor of natural gas $27.8 Lingering regulato
Slide 12: Air Pollution Control Segment Representative Solutions and Results
Air Pollution Control Segment Representative Solutions and Results ULTRA ® Systems SCR Systems NOx 60-80% 60-80% Combustion Modifications/ ® NOx- OUT Over-fire Air (OFA) SNCR NOx NOx 75% 30-50% 25-40% Befor After e 12
Slide 13: The U.S. is Moving Beyond Coal…
The U.S. is Moving Beyond Coal… Primary Source of Electricity Generation 2001 2017 32 states use coal as their primary source 18 states use coal as their primary source of electricity generation of electricity generation 7 states use natural gas as their primary 16 states use natural gas as their pr
Slide 14: …and so is Fuel Tech
…and so is Fuel Tech Revenue by Fuel Source Our flexible, adaptable APC solutions reflect the changing domestic fuel source landscape 2016 2017 2018 Coal Natural Gas Other 14
Slide 15: Air Pollution Control Segment International Market Drivers
Air Pollution Control Segment International Market Drivers Europe Opportunities driven by: EU Industrial Emissions Directive (effective Jan. 2016) Covers 28 European Union member states Installed Advanced SNCR systems on 7 units to date BREF (Best Available Reference Technology) guidelines were issu
Slide 16: FUEL CHEM Segment
FUEL CHEM® Segment In the US, this technology is used primarily to support the FUEL CHEM® Revenues ($ in MMs) cost reduction efforts of coal-fired utility power plant owners looking to use lower cost fuel to remain competitive $18.1 New unit added incremental quarterly revenue in $17.4 Q3 and Q4 201
Slide 17: TIFI Program Treatment Benefits
TIFI® Program Treatment Benefits Hard Slag Formation Controlled ® Before TIFI After TIFI® Tenacious Lighter Fewer pores Softer Hard, dense Easier to crumble Amorphous Benefitting a Biomass Boiler WITHOUT WITH TIFI® Higher DP and flue TIFI® No more outages for gas temperature slag removal Unscheduled
Slide 18: FUEL CHEM Segment TIFI Programs Mitigate SO3
FUEL CHEM® Segment TIFI® Targeted In-Furnace Injection™ Programs Mitigate SO3 Punta Prieta / La Paz, Mexico By targeting the problem areas of a furnace instead 6 Hours Later Before TIFI program of targeting the fuel, the performance and cost Before TIFI program effectiveness of TIFI® programs are si
Slide 19: Evolving Business Model and Strategy
Evolving Business Model and Strategy Advantages Exclusive license for North America and other territories for the non-medical use of NanO2’s micro-nanobubble dissolved gas technology Lower Superior Aeration / Reduce Operating Costs Oxygen Transfer Contaminants Applicable for the delivery of any trea
Slide 20: Highly Efficient Aeration Process for Wastewater Management
Highly Efficient Aeration Process for Wastewater Management A slipstream of raw or pre-treated water is fed into and Bubble Size Comparison, diameter through the Nan02 pressure vessel, where a concentrated gas is driven into the liquid according to Henry’s Law The gas-liquid solution is then dischar
Slide 21: Q4 2018 Operating Performance
Q4 2018 Operating Performance $ in MMs, unaudited Total Revenue SG&A Operating Income (1) $15.8 $4.9 $4.8 $0.9 $13.4 18% 2% $0.5 $0.4 M Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 (1) from continuing operations Adjusted EBITDA “ In Q4 2018, revenues rose at our APC and FUEL CHEM® segments, SG&A
Slide 22: Quarterly Operating Performance
Quarterly Operating Performance Last 5 Quarters (in MMs, except per share data) Q4 Q2 Q1 Q4 2018 Q3 2018 2018 2017 2018 Total Revenues $15.8 $16.1 $11.8 $12.8 $ 13.4 Gross Profit $5.9 $5.4 $3.7 $5.0 $5.6 Gross Margin % 37.3% 33.7% 31.4% 39.3% 42.0% SG&A $4.8 $4.1 $4.7 $4.9 $4.9 Net Income (Loss) fro
Slide 23: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA $ in thousands, unaudited Three Months Twelve Months Ended December 31, Ended December 31, 2,018 2,017 2,018 2,017 Net income (loss) $ 896 $ (672 ) $ (28 ) $ (10,449 ) Interest income (3 ) (2 ) (6 ) (10 ) Income tax (benefit) expense 31 (570 ) 33 (580 ) Depreciation expens
Slide 24: Summary
Summary Continue global APC business First annual operating profit development for traditional end since 2013 markets At FUEL CHEM focus on Generated $4.9 M in cash from Increased focus on supplying SCR additional market segments operations and ULTRA solutions for natural and geographies gas turbine
Slide 25: Thank You
Thank You Vince Arnone Devin Sullivan Chairman, President and CEO Senior Vice President (630) 845-4500 (212) 836-9608 varnone@ftek.com dsullivan@equityny.com 25