LiqTech International, Inc. · NASDAQ:LIQT
LiqTech International — Lytham Partners Virtual Investor Conference May 2020
32 slides from LiqTech International's conference presentation, May 2020
Slide 1: Welcome - Company Presentation May 2020
WELCOME Company Presentation May, 2020
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements This presentation contains "forward-looking statements“ within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the forward-looking statements in this presentation reflect the good faith judgment of management, fo
Slide 3: Experienced Senior Management
Experienced Senior Management Sune Mathiesen Claus Toftegaard CEO CFO ► Most recently CEO and majority owner ► Most recently CFO of Gabriel Holding of Provital Solutions A/S A/S, a publicly listed fabric company ► Broad experience in management and ► Previously served as CFO of RTX A/S, held several
Slide 4: Company Overview
Company Overview Fundamental SiC membrane SiC bulk and Commercial Acquisition of research and SiC breakthrough first SiC technology membrane systems in water development manufacturer manufacturing technology treatment 2000 2006 2013 2014 2018/2019 ► DPF ► Retrofitted nearly 2 million large vehicles
Slide 5: Company Overview
Company Overview LiqTech has placed orders for additional furnaces and plans to triple its production capacity by July 2020 Hobro, Denmark Ballerup, Denmark Minneapolis, USA ► Corporate headquarters ► Membranes manufacturing ► DPF manufacturing ► Systems manufacturing ► DPF manufacturing ► R&D Syste
Slide 6: Highlights 2019
Highlights 2019 improving our future
Slide 7: 2019 Highlights
2019 Highlights RECORD REVENUE • Preliminary Financial Results • FY 2019 revenue of $32.4 million, an increase of approximately 165% compared to fiscal year 2018 revenue of $12.3 million • Fourth quarter 2019 revenue of $6.0 million, in line with previously PROFITABILITY announced expectations • FY
Slide 8: Revenue Growth
Revenue Growth $14 $10.3 $12 Reflects impact $9.7 of mechanical $10 $9.3 issues on two US $ Millions of four legacy $8 $7.4 furnace $6.2 $6 $4 $3.6 $3.3 $3.1 $2.4 $2 $0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 FYE December improving our future
Slide 9: Gross Margin Improvement
Gross Margin Improvement 45% 40.0% 40% 35% 30% 25.7% 25% 22.3% 23.0% 22.0% 19.9% 20% 18.3% 15% 10% 8.6% 6.1% 5% 0% -5% -2.5% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 2021 Goal improving our future
Slide 10: Operating Profitability
Operating Profitability Turned the Company profitable in 2019 with expectation for further growth in 2020 $1 $0.1 US $ Millions $0 ($1) ($2) ($3) ($4) ($5) ($4.5) 2018 2019 FYE December improving our future
Slide 11: Marine Scrubber Market Update
Marine Scrubber Market Update improving our future
Slide 12: +90 Global Ports Banning Open Loop Discharge
+90 Global Ports Banning Open Loop Discharge improving our future
Slide 13: Scrubber Market Opportunity
Scrubber Market Opportunity • UP TO $1.6 The marine scrubber market is moving from open loop systems to closed loop systems • 10% closed loop in 2019, expected to be 25-50% closed loop for new • retrofits between 2020 and 2025 Key drivers for vessels moving from open loop to close loop BILLION • +90
Slide 14: Capacity Expansion
Ballerup, Denmark Capacity Expansion improving our future
Slide 15: Manufacturing Ramp Up
Manufacturing Ramp Up Potential Nov. 2019 Dec. 2019 Feb. 2020 May. 2020 Jul. 2020 Furnace#1 Furnace#2 Furnace#3 Furnace#4 Furnace#5 Furnace#6 RAMP UP Rev. Rev. Rev. Rev. Rev. Rev. $40-50 M $40-50 M $40-50 M $40-50 M $40-50 M $40-50 M Old Old Old Old Furnace#1 Furnace#2 Furnace#3 Furnace#4 DECOM- R&D
Slide 16: Ramp Up / Revenue Capacity
Ramp Up / Revenue Capacity Revenue Capacity Q4 2019: $20 - 25 M Q1 2020: $60 - 75 M Q2 2020: $100 - 125 M Q3 2020: $160 – 200 M improving our future
Slide 17: Ramp Up / Investments
Ramp Up / Investments Investments Power Central High Temp Furnace Furnaces #1-4: $4 M Power Plant (3600 AMP): $0.8 M Cooling Plant (5400 kW): $0.8 M Others: $0.4 M Total: $6.0 M Transformer Supply Cooling Plant improving our future
Slide 18: Membrane Products & Development
Membrane Products & Development PRODUCTS CURRENT OFFERING MF, UF, DPF 2020 Q2 ….+ DISC, FLAT SHEET 2020 Q3 ….+ NF 2021- ….+ OXID PRODUCTS WATER UTILITIES DRINKING WATER FOOD & BEVERAGE PHARMACEUTICALS REFINERIES improving our future
Slide 19: New Products - Marine
New Products - Marine Lower Cost • New MK7 Standardized Water Treatment System More Efficient • Water Maker – Desalination Ceramic / RO Tightening • Bilge Water Treatment System legislation Tightening • NOx Reduction System legislation Tightening • Black Carbon Reduction System legislation Water Qua
Slide 20: New Products
New Products Estimated Market Size • OEM Membranes $8 BN Estimated Market Size • Filter Press – Stand Alone Systems $3 BN improving our future
Slide 21: Future Addressable Market Opportunities
Future Addressable Market Opportunities Industry 2015 2020 2025 2030 2035 Product Applications Marine Scrubber, NOx Reduction, Carbon Black Reduction, Marine Drinking Water, Bilge Water, Pool Produced Water, Unconventional Oil & Gas, EOR, Refinery Oil & Gas Wastewater Power Plants Condensate Water,
Slide 22: Oil & Gas - LiqTech Water Treatment Solution
Oil & Gas LiqTech Water Treatment Solution improving our future
Slide 23: What Is Produced Water?
What Is Produced Water? • Natural formation water and/or injection water • Up to 10 barrels water per 1 barrel of oil! Produced Water Treatment Scenario Purpose • To meet discharge levels for Oil in water concentrations (OiW) • Conventional technology challenged (Walnut shell filters and flotation D
Slide 24: Oil & Gas Produced Water
Background – Oil & Gas Produced Water New regulations combined with geological restrictions and local water scarcity, the drive to have a greater fraction of the PW more extensively treated and ultimately reused is increasing. Moreover, the growth in the application of water intensive processes to e
Slide 25: Application Opportunities - Oil & Gas
Application Opportunities - Oil & Gas Application Objective LiqTech Potential Surface discharge Meet tightening environmental legislation Re-injection Facilitate re-injection in low permeable Produced water reservoirs – increase well lifetime Re-use for other purpose Water scarcity – reuse for injec
Slide 26: Why Use Membranes For Produced Water Treatment?
Why Use Membranes For Produced Water Treatment? SiC strengths towards conventional technologies for tertiary treatment of produced water: • Solution to oil emulsions • Solution to heavy oil where hydro cyclones are challenged • Solution to polymer flooded produced water • SiC membranes can handle fl
Slide 27: Why Use SiC Membranes For Produced Water Treatment?
Why Use SiC Membranes For Produced Water Treatment? SiC strengths towards other membrane materials: • SiC membranes have shown less fouling tendency at field head to head comparisons and thus more stable operating conditions than oxide membranes (Al2O3 and TiO2), e.g. • PW-reinjection in China • PW-
Slide 28: PWT for Re-Injection (On-Shore)
PWT for Re-Injection (On-Shore) Middle East (Q3 2019) - short term demand for large installations Success criteria’s Performance Unit OiW < 10.0 < 0.5 ppm TSS < 5.0 < 2.0 ppm Recovery > 90 > 90 % improving our future
Slide 29: LiqTech Oil & Gas Application Summary
LiqTech Oil & Gas Application Summary • Entered in 2009 – too early for membrane technology? • Exited the industry in 2014 following a large drop in oil prices • We are currently repositioning ourselves in the industry • Increasing environmental awareness and tightening legislation • Launch of uncon
Slide 30: Brand Promise
Brand Promise ”As a pioneer, and the leader on We are here to clean water for oil, development, manufacturing and supply of pathogens and heavy metals, and to take revolutionary silicon carbide ceramic an active role in reducing world pollution. technology for purification of liquids and We care abo
Slide 31: Sustainable Development Goals
Sustainable Development Goals - 17 Goals to Transform Our World improving our future
Slide 32: LiqTech
LIQTECH
LiqTech International — Lytham Partners Virtual Investor Conference May 2020 on 6ix