Ener Core Inc · OTC:ENCR
Ener Core — Investor Presentation (June 2017)
30 slides from Ener Core's investor presentation, Jun 6, 2017
Slide 1: A New Opportunity to Profit From Industrial Waste Gas
OTCQB: ENCR June 2017 A New Opportunity to Profit From Industrial Waste Gas
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation has been prepared by Ener - Core, Inc. (the "Company"). It should not be considered as an offer or invitation t o subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities
Slide 3: An Opportunity to Invest in a Business Contributing to a Future with Cleaner Air
3 An Opportunity to Invest in a Business that is Contributing to a Future with Cleaner Air ENER - CORE represents an opportunity to invest in a business and technology that has partnered with a Fortune 100 Company and offers a profitable manner for industrial companies to convert their own air pollu
Slide 4: Business Overview
4 Business Overview » Ener - Core expects to earn license fees by licensing its technology to the world’s largest manufacturers of gas turbines, industrial steam boilers and industrial dryers. » All these devices represent “established" multi - billion $ global equipment markets; Ener - Core’s techn
Slide 5: Disruptive Technology for Pollution Utilization
Disruptive Technology for Pollution Utilization
Slide 6: History Repeating Itself: The Rockefeller Story
6 Toward the end of the 19 th century, John D. Rockefeller was in the kerosene refinery business. All kerosene refiners used to throw away barrels of a “noxious by - product” into the creeks and rivers; this toxic runoff made Ohio’s Cuyahoga River flammable. If a steamboat threw away hot coals overb
Slide 7: Power Oxidation Overview Video
7 Disruptive Technology for Pollution Utilization Ener - Core Power Oxidation Overview Video Watch Dresser - Rand + Ener - Core Overview Video
Slide 8: Our Firm Beliefs
8 Our Firm Beliefs We believe that the only way for industrial corporations will ever take environmental sustainability seriously, is if there are tools available that will make “being sustainable” a profitable endeavor. These tools must stand on their own financially, and they cannot depend on subs
Slide 9: Disruptive Technology for Pollution Utilization
9 Disruptive Technology for Pollution Utilization • Ener - core Licenses power generation systems around its proprietary “Power Oxidation” technology. The business earns a license fee per unit sold. • Ener - Core also intends to earn a portion of long - term cash - flows from several of the power pr
Slide 10: Traditional Gas Turbine Technology (Combustion)
10 Traditional Gas Turbine Technology (based on Combustion) 3. Turbine Standard CHP Gas Turbine 1. Air Intake 1. Ambient Air pulled in by compressor 2. Premium Fuel (converted to heat via combustion) 3. Thermal Expansion of air causes rotating of blades 4. Electricity 2. Combustion Chamber 4. Exhaus
Slide 11: Ener-Core Power Oxidizer in a Modified Gas Turbine
11 Ener - Core Oxidizer Emissions Filter Power Oxidizer replaces the combustion chamber in standard gas turbines Modified Gas Turbine with Power Oxidation Power Oxidizer replaces the traditional combustion chamber. Enables a gas turbine to generate clean power energy from “free” industrial waste gas
Slide 12: Technology Addresses A $50 Billion Global Industrial Equipment Market
Technology Addresses A $50 Billion Global Industrial Equipment Market
Slide 13: $50 Billion Market Opportunity: Expanding Scope of Combined Heat & Power
13 $50 Billion Market Opportunity: Expanding Scope of Combined Heat & Power Current Alternative to Purchasing Energy is: Distributed Energy Generation Solar, Wind, Microturbine, Fuel Cells & CHP – Projected $180 Billion by 2020 1 Combined Heat and Power (CHP): Generation of electric power and therma
Slide 14: Targeted Industries & Potential Applications
14 Targeted Industries & Potential Applications Digesters Landfills Food Processing Chemicals Worldwide: $50 Billion Industrial Equipment Market United States: $10+ billion in ~15 vertical markets Oil & Gas Ethanol Plants / Distilleries Coal Mines Rendering & Animal Processing Byproducts Aerospace &
Slide 15: Significant End-Customer Value Proposition – Project IRRs in Excess of 20%
Significant End - Customer Value Proposition – Project IRRs in Excess of 20%
Slide 16: Macro and Site-Specific Economics of Industrial Sectors
16 Macro - Economics • Global Market Opportunity – 3 million industrial facilities worldwide • $800 billion spend on energy to operate facilities (energy typically 10 - 30% of total industrial operating costs) • Monetary Value of Waste Gases = $65 Billion (enough electric power for all North America
Slide 17: Pacific Ethanol Stockton Plant
17 Pacific Ethanol Stockton Plant July/Aug 2017 , Dresser - Rand business planned final commissioning of two commercial 2MW systems at Pacific Ethanol, a leading producer and marketer of low - carbon renewable fuels. Neil Koehler, Pacific Ethanol President and CEO: “Rather than destroying waste gase
Slide 18: "Asset-Light" Licensing Model
“Asset - Light” Licensing Model
Slide 19: Evolution of Ener-Core's Business Model
19 Evolution of Ener - Core’s Business Model Public Company & Begins Developing Sales Pipeline Signing of First Commercial + Manufacture License Agreement • Direct - Sale & In - House Manufacturing of 250kW systems 1) Must employ sales team 2) Gross Profits/Unit = $100k - $150k 3) Working Capital &
Slide 20: Licensing Market Opportunity
20 5 to 10 MW 10+ MW Target Future Licensees Licensing Market Opportunity Target Future Steam Boiler Licensing Partners *Licensee to be Limited by Size* *Licensee to be Limited by Geography* 1 to 4 MW Current Licensee
Slide 21: Basic Parameters of First License Agreement
21 Basic Parameters of First License Agreement June 2016 – First commercial & manufacturing license agreement with Dresser - Rand business, part of Siemens Power and Gas Division Licensee will manufacture, sell and provide performance guarantees for the Power Oxidizers (integrated with their 2 MW KG
Slide 22: Evolution of Business Model
22 Evolution of Business Model Ener - Core has successfully scaled its technology up to 2 MW, and transitioned its business to a licensing model. Larger product much better fit for industrial sites struggling with air emissions. Licensing model enabled management to reduce burn - rate by 40%. In par
Slide 23: Asset Light Licensing Business Model
23 Asset Light Licensing Business Model Single Licensee Economics (2MW): • $0.4 - 0.6 M per unit • 50% cash paid on order (net 30) • 50% cash paid on delivery (10 - 12 MO) Pathway to Positive Cash Flow: • Close 2 units/quarter + • Reduce manufacturing related expenses from current $1.2M per quarter
Slide 24: Recent Wins and Noteworthy Progress
24 Recent Wins and Noteworthy Progress Years 2015 - 2016: Sold first 2 MW systems to first industrial customer. Scaled technology up to 2 MW, installed and fully powered up first 2 systems. Closed initial commercial contracts and collected payments for $3.2 Million, as well as additional “conditiona
Slide 25: Capital Structure
25 Capital Structure Common Shares Outstanding Common Shares Outstanding as of June 2, 2017 (M) 4.1 Price per Share as of June 2, 2017 $1.32 Market Capitalization (M) $5.4 Convertible Notes (M) Senior Secured ($9.1M) Junior Unsecured ($1.25M) $10.4 Cash Balance at 3/31/17 (M) (excl. $1.2M license re
Slide 26: Proven Management Team
Proven Management Team With Combined 120 Years Experience in Power, Oil, Gas and Pollution Abatement Sectors
Slide 27: Management Team Biographies
27 Alain Castro, Chief Executive Officer and Board Member • 23 years experience in energy sector • Previously, President of Akuo Energy Americas, which has developed and financed approx. € 1 Billion in renewable energy infrastructure projects • London Business School: Sloan Fellowship, Executive Mas
Slide 28: Board of Directors
28 Michael Hammons, Chairman of the Board • Diverse domestic and international experience across multiple verticals such as telecommunications, energy, automotive, aeros pac e and defense, data storage, enterprise software, and electronic hardware. • Leadership positions including CEO at Vigilistics
Slide 29: Summary
29 Summary • Disruptive Technology — Power Oxidizer provides a competitive advantage for customers, by generating on - site power, lowering OPEX and eliminating emissions (air pollution) • Large Global Market — Growing $50 billion global industrial equipment market • First Global Licensee signed — D
Slide 30: Contact
30 Contact Corporate Headquarters Ener - Core, Inc. 8965 Research Drive – Suite 100 Irvine, CA 92618 Office: (949) 732 - 4400 Investors Relations: ENCR@ener - core.com Investor Relations Chris Tyson Managing Director MZ North America Main: 949 - 491 - 8235 chris.tyson@mzgroup.us www.mzgroup.us www.e