American Power Group Corp. · OTC:APGI
American Power — Investor Presentation (April 2014)
16 slides from American Power's investor presentation, Apr 14, 2014
Slide 1: Turbocharged Natural Gas Dual Fuel System
Turbocharged Natural Gas™ Dual Fuel System April 9, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for certain forward- looking statements, including statements made during the course of today's presentation. Such forward-looking statements are based on the company's current expectations and beliefs
Slide 3: Key Accomplishments / Revenue
Key Accomplishments / Revenue Key Accomplishments • Leadership Brand Recognition • Most EPA Approvals • Broadest Engine Family Coverage • APG Dual Fuel Glider™ - HDT Top 20 Award • Expanding Dealer Network • Growing Customer Base $0 $2 $4 $6 $8 $10 $12 2010 2011 2012 2013 2014 Forecast Fiscal Year R
Slide 4: Improving APG Margins
Improving APG Margins • EPA Approvals Support Growth • Strong Contribution Margins • Controlling Overhead Costs • Excellent Incremental Leverage $(0.7) $(0.1) $0.7 $2.7 $(5.1) $(5.4) $(1.8) $(0.7) $0.1 $(6.0) $(5.0) $(4.0) $(3.0) $(2.0) $(1.0) $- $1.0 $2.0 $3.0 $4.0 2010 2011 2012 2013 2014 Q1 Gross
Slide 5: Stationary Market >$100 Million
Stationary Market >$100 Million Addressed Market Oil & Gas • 300 – 500 HP: Pump Jack / Blenders • 1500HP: Vertical Drilling • 2250HP: Horizontal Fracturing Industrial • Hospital / Emergency Backup • Warehousing / Peak-Shaving • Data Center / Emergency Backup 5 Photo courtesy of and copyrighted by Ha
Slide 6: Vehicular Market >$1 Billion
Vehicular Market >$1 Billion Addressed Markets • EPA OUL Class 8 Trucks: >10 years old or >435,000 miles • EPA IUL Class 8 Trucks: > 2 years old & <435,000 miles • Dual Fuel Glider: 2014/2015 cabs with rebuilt pre-EGR engines • International: Wide range of emission standards 6
Slide 7: APG International Dual Fuel Installations
APG International Dual Fuel Installations 7 Australia Canada China Colombia Dominican Republic Ecuador India Nigeria Turkey
Slide 8: WheelTime's physical infrastructure creates a unique service platform
WheelTime’s physical infrastructure creates a unique, high value service platform. 8 181+ Locations 3,500 Technicians 2,800 Service Bays 1,500 Service Vehicles
Slide 9: North American Dealer / Installer Network
American Power Group North American Dealer / Installer Network 9
Slide 10: North American Vehicular – APG Path to Production
North American Vehicular – APG Path to Production 10 • APG complete targeted OUL & IUL EPA approvals • Expand the build-out of CNG & LNG fill-station network • WheelTime to upgrade facilities for natural gas installation & service • Early-adopter customers establish natural gas fleet strategies FY 2
Slide 11: Commodity Component Sensitivity
Commodity Component Sensitivity Currently crude oil accounts for 57% +- of the price of a gallon of diesel as compared to the commodity price of natural gas which accounts for 20%+- of the price of CNG at the pump. This implies that the volatility in crude prices will have a greater impact on pump p
Slide 12: Public Heavy Duty CNG Fueling Stations
Public Heavy Duty CNG Fueling Stations Source: US Department of Energy, Alternative Fuel Data Center. (March 2014) California, Alaska & Hawaii counts removed. Only Public HD CNG stations shown. 12
Slide 13: Public Heavy Duty LNG Fueling Stations
Public Heavy Duty LNG Fueling Stations* * Includes open public HD LNG stations – 36 facilities. Planned public and private station openings for 2014 (excluding California): 61 Source: US Department of Energy, Alternative Fuel Data Center. (March 2014) California, Alaska & Hawaii counts removed. 13
Slide 14: Key Factors to Natural Gas Success
Key Factors to Natural Gas Success The Dual Fuel Industry is a Game-Changer 14 Abundant Natural Gas # of Fill Stations LNG CNG Competitive Tank Storage - Compressed Natural Gas (CNG) - Liquefied Natural Gas (LNG) Viable Dual Fuel Users - Economic - Environmental Diesel LNG DEF
Slide 15: Why APG?
Why APG? Markets Emerging multi-billion dollar addressable market for diesel/natural gas dual fuel technology. Leadership APG has developed a recognized leadership position in both vehicular and stationary markets. Industry leading 453 OUL EPA approvals for six of the most popular Class 8 engines Mo
Slide 16: APG's Freedom of Choice
APG’s Freedom of Choice “APG’s dual fuel flexibility empowers the diesel engine owner to enjoy favorable fuel savings with diesel-like performance today while at the same time providing a safety net to return to original diesel engine operation as a hedge against future unknown risks.” “No other nat
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