Fuel Tech, Inc. · NASDAQ:FTEK
Fuel Tech — Shareholder Meeting (May 2010)
23 slides from Fuel Tech's shareholder meeting presentation, May 20, 2010
Slide 1: Investor Presentation Annual Meeting May 20, 2010
INVESTOR PRESENTATION ANNUAL MEETING MAY 20, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements,” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect our current expectations re
Slide 3: Fuel Tech, Inc.
Fuel Tech, Inc. Fuel Tech is an integrated technology company providing advanced engineering solutions to enable clean efficient energy U.S. offices Warrenville, IL Stamford, CT Durham, NC One-Year Performance of FTEK International offices Milan, Italy Beijing, China 160 employees
Slide 4: Fuel Tech's Global Presence
Fuel Tech’s Global Presence Office Locations: Warrenville, IL; Stamford, CT; Durham, NC; Milan, Italy; Beijing, China Countries where Fuel Tech does business: USA, Argentina, Belgium, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Dominican Republic, Ecuador, Estonia, France, Germa
Slide 5: Two Business Segments
Two Business Segments FUEL CHEM® segment Boiler efficiency, slag and corrosion reduction, SO3 abatement TIFI – Targeted In-Furnace Injection technology Focus is on clean, efficient energy and fuel flexibility Annuity; on-going revenue stream Revenue in 2009 of $36.7 million Air Polluti
Slide 6: 3-D Visualization of Boiler Conditions
3-D Visualization of Boiler Conditions Proprietary software with strong IP protection; patented technology Determines chemical injection location and quantity (i.e., the right amount at the right place within the right temperature zone) Computational Fluid Dynamics (CFD) Model Customized for
Slide 7: FUEL CHEM Business Segment
FUEL CHEM Business Segment ® Slag – the iron, sodium and other non-combustible minerals in coal Above the ‘ash fusion temperature’ these minerals melt and adhere to the inside walls and pipes of a boiler EPA estimates slag and associated problems cost U.S. coal-fired power plants $2.4 billion/
Slide 8: FUEL CHEM TIFI Overview
FUEL CHEM TIFI Overview TIFI nozzle injecting Magnesium Hydroxide Initial Chemical Feed After 8 hours After 24 hours 8
Slide 9: Furnace After TIFI Treatment
Furnace After TIFI™ Treatment Boiler must be thoroughly cleaned to allow for inspection of pipes and walls Inherently dangerous task With FUEL CHEM 12 hours of off-line cleaning Without FUEL CHEM 6+ days of off-line cleaning (i.e., explosive de-slagging) 9
Slide 10: Typical FUEL CHEM Program Timeline
Typical FUEL CHEM Program Timeline License agreement (IP) signed and Purchase Order (PO) issued Boiler CFD modeling – 2 weeks Install injectors – 2 days (boiler outage required) Sample 90-day risk-sharing demonstration period 0 – 90 days: 50/50 split on chemical cost Fuel Tech usually ow
Slide 11: Current & Future Air Regulatory Drivers
Current & Future Air Regulatory Drivers Air Regulation Expansion SIP= State Implementation Plan CAIR= Clean Air Interstate Rule 11
Slide 12: Regulatory Status
Regulatory Status Potential Stricter Emissions Rulings Clean Air Interstate Rule (CAIR) CAIR vacated July 2008 and remanded without vacature in December 2008 EPA submitted revised CAIR Rule for review in April 2010 Proposed rule anticipated mid-year 2010 with possible implementation date o
Slide 13: Typical Power Plant
‘Typical Power Plant x ASCR™/CASCADE™ CATALYST HERT™ SNCR SCR <€———— CATLife SERVICES NOxOUT" SNCR TIFT TRONA Over-Fire Air (OFA) Low NOx Burners (LNB) verre FLYASH MODELING SERVICES Fuel Tech Technologies Non-Fuel Tech Supplied ASCR™: LNB + OFA + SNCR + AIG + GSG + Catalyst LNB: Low NOx Bumers ESP:
Slide 14: China Market Potential
China Market Potential Market Overview In 2009 used an estimated 3.0 billion tons of coal/year (vs. 1.1 billion tons USA) Adding one new large coal plant per week, on average (over 4,000 in total) Regulations will create multi-billion dollar retrofit market over 10+ year period National NO
Slide 15: Guangzhou City Energy Efficiency and NOx Emissions Control Workshop
Guangzhou City - Energy Efficiency Improvement and NOx Emissions Control Technologies Workshop The goal of the July 2009 workshop was to help educate potential clients on systems to alleviate ever-worsening air quality issues in the South China and Hong Kong region, while helping the power sector ut
Slide 16: U.S. Department of Commerce's Export Achievement Certificate
U.S. Department of Commerce’s Export Achievement Certificate An Export Achievement Certificate was presented to Fuel Tech, Inc. by Ro Khanna, Deputy Assistant Secretary for Domestic Operations, on September 23, 2009 in recognition of Fuel Tech’s “huge success in the NOx control market in China with
Slide 17: Other Key International Markets
Other Key International Markets Europe (APC & FUEL CHEM) Electric utilities, municipal solid waste incinerators, cement kilns Projects on over 100 units (mostly APC) Poland and UK are major markets for NOx control Mexico (FUEL CHEM) 17,000 MWs of heavy fuel oil and coal SO3 emissions (
Slide 18: Financial Profile
Financial Profile Attractive financial model highlighted by high margin businesses, nominal capital expenditures, strong cash flow generation and the ability to leverage SG&A Air Pollution Control Segment 2009 revenues of $34.7MM $12.1MM in APC orders announced Y-T-D; compares to $37.8MM in
Slide 19: Financial Information
rust Tecn Technologies to FINANCIAL INFORMATION
Slide 20: Business Segment Data (in 000's)
Business Segment Data (in 000’s) Q1 - 2010 For the three months ended March 31, 2010 APC FUEL CHEM Other Total Net Sales from external customers $ 8,214 $ 9,403 $ - $ 17,617 Cost of sales (5,258) -64% (4,242) -45% - (9,500) Gross margin 2,956 36% 5,161 55% - 8,117 Selling, general and administrative
Slide 21: Income Statement (in 000's)
Income Statement (in 000’s) For the three months ended March 31 2010 2009 Net sales $ 17,617 $ 17,317 Costs and expenses: Cost of sales 9,500 11,374 Selling, general, and administrative 7,480 8,254 Research and development 146 154 17,126 19,782 Operating income/(loss) 491 (2,465) Interest expense (4
Slide 22: Cash Flow Statement (in 000's)
Cash Flow Statement (in 000’s) For the three months ended March31 2010 2009 Operating Activities Net income /(loss) $ 214 $ (1,562) Net cash provided by operating activities 685 6,504 Investing Activities Proceeds from sale of equipment Sales (purchases) of short term investments Acquisition of busi
Slide 23: Balance Sheet (in 000's)
Balance Sheet (in 000’s) March 31 2010 December 31 2009 Assets Current assets: Restricted cash $ 75 $ 200 Cash and cash equivalents 21,432 20,965 Short term investments - - Accounts receivable, net of allowances for doubtful accounts of $70 and $80, respectively 19,918 17,877 Inventories 806 450 Def