Slide 1: Corporate Presentation Q2-2020
Technologies inc. CORPORATE PRESENTATION Q2-2020
Slide 2: Disclaimer
DISCLAIMER Legal Notice Regarding Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this presentation
Slide 3: Overview
OVERVIEW Kelso Technologies Inc. is an innovator in transportation equipment. Our inventors and engineers design proprietary components to address issues in the safe transport of materials and personnel. Kelso’s patented products provide reliable performance and economic advantages while reducing th
Slide 4: Leadership
LEADERSHIP Kelso’s Board of Directors and executive management team have a breadth of experience to ensure that stakeholder interests are protected. In 2020 the team is comprised of individuals from business sectors including: • Rail • Law • Transportation • Mergers & acquisitions • Finance • Accoun
Slide 5: Directors & Officers
DIRECTORS & OFFICERS Kelso Directors James R. Bond Paul Cass* Anthony (Tony) Andrukaitis Jesse Crews* Peter Hughes* Frank Busch* Laura Roach* Kelso Officers James R. Bond, President & Chief Executive Officer Anthony (Tony) Andrukaitis, Chief Operations Officer Richard Lee, Chief Financial Officer *d
Slide 6: Operations
OPERATIONS The rail operations facility in Bonham, Texas is centrally located close to supply chains and customers. Built in 2014, it is 50,000 sq.ft. with an R&D engineering department and room to expand. A second facility operates in Kelowna, BC, Canada for gyroscopic vehicle suspension design, te
Slide 7: Product Development
PRODUCT DEVELOPMENT Kelso engineers develop, test and bring to market new designs in response to customer needs. The transportation industry seeks improved equipment performance, environmental safeguards and more efficient use of time. Kelso partners with companies to modernize rail and shipping com
Slide 8: Business Model
BUSINESS MODEL Diversification in transportation markets is a key focus in 2020. While our roots are in rail tank car equipment, there are new growth markets that fit well with our business capabilities. Market Sectors Railway Railroads Trucking Natural Resources Government Fire & Rescue Q2-2020 8
Slide 9: Sales Strategy
SALES STRATEGY Our sales, operations and engineering teams use a customer-focused integrated approach in key markets: RAILWAY: HAZMAT shippers, tank car manufacturers, lessors and retrofit/repair shops. Introduce new BOV, wheel cleaner, suspension RAILROADS: Develop components for Class I and II rai
Slide 10: Commercial Products: Railway
COMMERCIAL PRODUCTS Railway ALL RAIL Railroads (OEMs, lessors, repairs) Pressure Kel-flo Wheel relief valve fueling cleaner Vacuum relief valve Emergency rail kit One-bolt manway KXI suspension Bottom outlet valve Q2-2020 10
Slide 11: Commercial Products: Trucking
COMMERCIAL PRODUCTS Trucking (OEMs, owners, lessors, shippers) Pressure/ Truck vacuum valve one-bolt manway Q2-2020 11
Slide 12: Commercial Products: Natural Resources, Fire & Rescue, Government, Military
COMMERCIAL PRODUCTS Natural Resources | Fire & Rescue | Government | Military Kel-flo KXI fueling suspension Q2-2020 12
Slide 13: Financial Performance
FINANCIAL PERFORMANCE 6 Millions 5 4 3 Revenue 2 Earnings Losses 1 0 -1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2019 2019 2019 2019 2020 2020 Q2-2020 13
Slide 14: Historic Annual Performance
HISTORIC ANNUAL PERFORMANCE Crude oil expansion 2013-2015 created new tank car demand; 2015-Q2 oil price drop created tank car oversupply 2015 – 2017 25 Millions 20 15 10 Revenue 5 Earnings Loss 0 -5 -10 2013 2014 2015 2016 2017 2018 2019 Q2-2020 14
Slide 15: Corporate Summary
CORPORATE SUMMARY Traded on the TSX:KLS and NYSE American: KIQ Experienced management team Proven proprietary products and production capability Engineering innovation and custom services Products made in North America No long-term debt Positive working capital from sales Common shar