Fuel Tech, Inc. · NASDAQ:FTEK
Fuel Tech — Investor Presentation (September 2017)
16 slides from Fuel Tech's investor presentation, Sep 20, 2017
Slide 1: September 2017 Investor Presentation
1 September 2017 Investor Presentation
Slide 2: Safe Harbor: Note Regarding Forward-Looking Statements
2 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
Slide 3: Air Pollution Control and FUEL CHEM Overview
3 Air Pollution Control Low capital, high efficiency emissions control solutions. Installed worldwide on combustion units, primarily coal-fired utility and industrial. Capital project sale, typically fixed-price and turn-key. FUEL CHEM® Improves combustion efficiency, reliability, heat rate, and env
Slide 4: 2017 Overview
4 2017 Overview Coming off one of the most challenging periods in Fuel Tech’s recent history… Legislative inertia Declining energy demand Ongoing shift in fuel sources …we continued to execute against a series of multi-year, proactive initiatives driven by three primary mandates: Global busi
Slide 5: Investment Overview: Backlog, SG&A and R&D
5 Investment Overview Backlog ~ $30 M of new contracts announced thus far in 2017 Focusing on Business Development, Positive Cash Flow, and R&D $30.9 $25.6 $11.1 $22.2 $8.0 $22.5 $1.5 $4.3 $4.6 SG&A Expect ~40% decline for 2017 from 2014 R&D Focus on technologies that will help define our future, in
Slide 6: Maintaining a Strong Financial Position
6 Maintaining a Strong Financial Position Investment Overview $35.9 $26.6 $17.8 2014 2015 2016 6/30 2017 $39.7 2014 2015 $12.6 $18.6 2014 2016 $21.7 6/30 2017 2015 2016 0 $ Cash and Cash Equivalents Working Capital Long-Term Debt Continue to manage cash position, which should begin to trend higher d
Slide 7: Recent Developments: Corporate Initiatives
7 Recent Developments Corporate Initiatives » Engaged third-party consultant to review operating model and organizational design – prioritize resource allocation – further reduce cost structure – improve operational efficiencies – strengthen balance sheet and cash flow generation capabilities – cata
Slide 8: Products and Services
8 Products and Services FGC = Fuel Tech Products and Services
Slide 9: Geographies and End Markets
9 Geographies and End Markets SNCR 570+ / 51,300 FUEL CHEM® 110+ / 21,900 ULTRA® 250+ / 27,700 Combustion Modifications 110+ / 16,400 SCR, ASCR, Catalyst Management Services 150+ / 63,200 U.S. China 57% 29% 14% 84% 16% 77% 89% 81% Utility Industrial ROW 68% 32% 67% 33% 87% 13% 74% 26% 68% 32% FTEK S
Slide 10: Blue Chip Client Base
10 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
Slide 11: Air Pollution Control Segment
11 Air Pollution Control Segment » Environment remains challenging, with lingering regulatory uncertainty despite “coal-friendly” posture of new administration » $150 M global sales pipeline » 2017 booking level highest in three years ($ in MMs) ($ in MMs) APC Revenues APC Gross Profit $42.0 $34.0 $
Slide 12: Air Pollution Control Segment: International Market Drivers
12 Air Pollution Control Segment International Market Drivers » Europe – $5 M of new contracts thus far in 2017 for SCR and ULTRA – EU Industrial Emissions Directive (effective Jan. 2016) • Covers 28 European Union member states • Installed Advanced SNCR systems on 7 units to date – Benefitting from
Slide 13: FUEL CHEM Segment
13 FUEL CHEM® Segment » Declining revenues due to low-priced natural gas and coal-to-gas conversions » Revenues will likely decline in 2017 vs. 2016, with consistent gross margin (48% - 52%) » In U.S. market, technology to utilities as a means to: – Combat effects of reduced load profiles – Support
Slide 14: TIFI Program Treatment Benefits
14 Before TIFI® • Tenacious • Fewer pores • Hard, dense • Amorphous TIFI® Program Treatment Benefits After TIFI® • Lighter • Softer • Easier to crumble WITHOUT TIFI® WITH TIFI® Higher DP and flue gas temperature Unscheduled, high- cost boiler outages in order to remove slag No more outages for slag
Slide 15: Operating Performance
15 Operating Performance (in MMs, except per share data) Q2 2017 Q2 2016 First Half 2017 First Half 2016 Total Revenues $9.7 $15.2 $ 18.2 $33.0 Gross Profit $3.6 $5.6 $7.3 $11.6 Gross Margin % 37.2% 36.8% 40.3% 35.2% SG&A $5.9 $6.8 $11.1 $13.9 Net Loss from Continuing Ops $(5.6) $(1.8) $ (7.4) $(3.8
Slide 16: Summary
16 Summary Continue to evolve business model to address changing energy environment and global trends At APC, focus on global business development, including international expansion Manage through challenges at FUEL CHEM via focus on additional market segments and geographies Leverage ~ $19M in annu