Ener Core Inc · OTC:ENCR
Ener Core — Investor Presentation (December 2016)
26 slides from Ener Core's investor presentation, Dec 8, 2016
Slide 1: A New Opportunity to Profit From Industrial Waste Gas
OTCQB: ENCR December 2016 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: Business Overview
3 Business Overview Ener - Core is a licensor of its proprietary technology on a fee - based business model to leading global manufacturers of power, steam and heat generation equipment Technology extracts energy from industrial waste gases while reducing air pollution Resulting energy is used to pr
Slide 4: Highlights
4 Highlights • Disruptive Technology — Power Oxidizer provides a competitive advantage for customers, by generating on - site power, lowering OPEX and reducing emissions (air pollution) • Large Global Market — Growing $50 billion global industrial equipment market • First Global Licensee signed — Dr
Slide 5: Disruptive Technology for Pollution Utilization
Disruptive Technology for Pollution Utilization
Slide 6: Disruptive Technology for Pollution Utilization
6 Disruptive Technology for Pollution Utilization • Ener - core has designed, patented and built power generation systems around its proprietary “Power Oxidation” technology • Enables industrial companies to convert a liability (Air Pollution) into monetizable, clean utility - grade power • Industri
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: Ener-Core Oxidizer replaces the combustion chamber in gas turbines
8 Ener - Core Oxidizer Emissions Filter Power Oxidizer replaces the combustion chamber in standard gas turbines Modified Gas Turbine with Power Oxidation Our disruptive Power Oxidizer replaces the traditional combustion chamber & enables a gas turbine to generate clean power energy from “free” indus
Slide 9: Technology Addresses A $50 Billion Global Industrial Equipment Market
Technology Addresses A $50 Billion Global Industrial Equipment Market
Slide 10: $50 Billion Market Opportunity: Expanding Scope of Combined Heat & Power
10 $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 11: Targeted Industries & Potential Applications
11 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 12: Significant End-Customer Value Proposition – Project IRRs in Excess of 25%
Significant End - Customer Value Proposition – Project IRRs in Excess of 25%
Slide 13: Macro-Economics
13 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 14: Pacific Ethanol Stockton Plant
14 Pacific Ethanol Stockton Plant Q4 2016 , Dresser - Rand business planned installation 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 gases, we will re
Slide 15: "Asset-Light" Licensing Model
“Asset - Light” Licensing Model
Slide 16: Business Model: Commercial Licensing Deployment
16 Dec.’14 - Dresser - Rand receives Purchase Order from Pacific Ethanol for 2 Ener - Core next - generation (2 MW) systems Mar.‘15 - Ener - Core launches efforts to scale - up Ener - Core’s Power Oxidizer from 250kW to 2 MW (8x larger) and integrating with Dresser - Rand’s 2 MW turbine. Feb.’16 - E
Slide 17: Evolution of Ener-Core's Business Model
17 Evolution of Ener - Core’s Business Model Public Company & Begins Developing Sales Pipeline Signing of First Commercial License Agreement • Direct - Sale & In - House Manufacturing of 250kW systems 1) Must employ sales team 2) Gross Profits/Unit = $100k - $150k 3) Working Capital & Performance Gu
Slide 18: Licensing Market Opportunity
18 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 19: First License Agreement
19 First License Agreement June 30, 2016 – First commercial & manufacturing license agreement with Dresser - Rand business, part of Siemens Power and Gas Division Licensee will manufacture and sell the Power Oxidizers (integrated with their 2 MW KG2 gas turbine) directly to industrial customers Ener
Slide 20: Asset Light Licensing Business Model
20 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 21: Capital Structure
21 Capital Structure Common Shares Outstanding Common Shares Outstanding as of September 30, 2016 (M) 3.8 Price per Share as of September 30, 2016 $3.10 Market Capitalization (M) $11.8 Pro Forma Convertible Notes (M) (1) $11.25 Pro Forma Cash Balance (M) (2) $4.6 Additional Paid - In Capital (M) $30
Slide 22: Proven Management Team
Proven Management Team With Combined 120 Years Experience in Power, Oil, Gas and Pollution Abatement Sectors
Slide 23: Management Team Biographies
23 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 24: Board of Directors
24 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 25: Summary
25 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 26: Contact
26 Contact Corporate Headquarters Ener - Core, Inc. 9400 Toledo Way Irvine, CA 92618 Office: (949) 616 - 3300 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.ener - core.com O