Liqtech International, Inc. · NASDAQ:LIQT
Liqtech International — Investor Presentation (August 2014)
28 slides from Liqtech International's investor presentation, Aug 1, 2014
Slide 1: The Future of Filtration
THE FUTURE OF FILTRATION
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS LigTech (“QT”) has filed a registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates (the “ Registration Statement”) and a related prospectus supplement. The information contained in this pre
Slide 3: Leading provider in highly specialized, advanced and disruptive SiC membrane filtration
Vv wy Leading provider in highly specialized, advanced and disruptive Silicon Carbide (SiC) Membrane filtration for various end- markets including oil & gas, wastewater and drinking water Unique design and manufacturing expertise to produce the highest performing filters on the market SiC is one of
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Slide 5: Corporate Overview and Revenue Breakdown
CORPORATE OVERVIEW REVENUE BREAKDOWN + Founded.. 2004 % of Revenue 100 + Headquarters Ballerup, Denmark + DK Manufacturing Facility. Ballerup, Denmark 80 + + US Manufacturing Facility. Minnesota 60 + Ticker. NYSE:LIQT 40 + Market Cap (7/14/14) . $57™M sald + Shares Outstandin 27.2M + LTM Revenue. $1
Slide 6: Silicon Carbide Products Overview
SILICON CARBIDE PRODUCTS OVERVIEW Tubular Membranes * Robust and high yielding membrane solutions = The predominant co uration of membrane installations worldwide * Applications: Produced water (Oil & Gas), Industrial process and wastewater Flat sheet Membranes (FSM) = Lowenergy consumption, highest
Slide 7: SiC membranes have the highest throughput (flux) of any membrane material
Silicon Carbide (SiC) membranes have the highest throughput (flux) for any membrane materials — less energy and space needed SiC membranes offer the most robust product properties on the market Second hardest material behind diamond allowing for greater durability SiC benefits add value to customers
Slide 8: The Silicon Carbide Difference
THE SILICON CARBIDE DIFFERENCE SiC membranes are more energy efficient, temperature resistant, harder, more porous, and longer lasting MEMBRANE MATERIA! SiC Ceramic Polymer Cost of ownership ++ ++ + +H + + Flux HH +H + ttt + + Energy Savings +H + + +H +H + Fouling Tendency +H ae + None None Yes Temp
Slide 9: Government regulation and environmental consciousness shifting economics in favor of LiqTech
Government regulation and environmental consciousness are shifting economics in favor of LiqTech’s technological solutions and away from traditional technologies Selling Filters Produced Water 0.1 1.5 Pre-Filtration for Reverse Osmosis 1.0 2.2 Industrial Applications 3.0 5.0 Waste Water Treatment 0.
Slide 10: Oil & Gas and Industrial
OIL & GAS Working and in discussions with 50+ oil companies and operators Involved with 50+ projects — from initial discussions to commissioning Working with leading companies around the World with installations expected in 2015 Operations in Venezuela, Colombia, China, Canada, the North Sea, and th
Slide 11: SiC ceramic membranes for produced water treatment
* SiC ceramic membranes will play a vital role for treatment of produced water derived from conventional and unconventional upstream Oil & Gas production * Drivers: MARKET + Lack of discharge/disposal of the produced water OPPORTUNITY * The increasing water cut * Introduction of polymer flooding for
Slide 12: Regulations and short ROI drive interest in SiC membranes
+ Regulations and short Return On Investments drives the market interest for robust SiC membrane solutions that enables end-users to reduce operating cost and to achieve environmental compliance MARKET * Applications: OPPORTUNITY + dean melneneal * Oil processing faci * Machine shops + Power plants
Slide 13: Municipal wastewater market and Saudi Arabia case study
+ Municipal wastewaters the fastest growing membrane market segment + Retrofit opportunity for solid removal technologies: MARKET . OPPORTUNITY . polymeric membrane installations compact modular solutions for re-use of industrial wastewater + pre-treatment for seawater desalination and ground water
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Slide 15: Corporate Snapshot and Transaction Overview
CORPORATE SNAPSHOT TRANSACTION OVERVIEW + Founded. 2009 * Consideration up to $8.4M + Headquarters... Denmark * Includes earn-out up to 3M shares contingent on sales and + Production Location. Denmark profits targets for 2014 and 2015 + Employees 15 + LIQT is obligated to support Provital with worki
Slide 16: Provital Filtration Systems
PROVITAL FILTRATION SYSTEMS Saves space ~~ Saves water s Reduces running costs tan Provides better water quality —— Fully automated Environmentally friendly Target Market 8-10K municipal pools built /year $23Bn market with 5.3% growth through 2019 Non-residential building construction market support
Slide 17: Product Applications
PRODUCT APPLICATIONS MF Filtration UF Filtration Water Reclamation Drinking Water * Lor 3 micron units * 0.04 micron units * 0.04 micron units + Containerized plug & play for production of * Public swimming pools + Pre-filtration for RO + Back wash water from _ sand filters, surface and drinking wat
Slide 18: First UVC Hybrid Mercury / LED Light Product Overview
"First UVC Hybrid Mercury / LED light in the world PRODUCT OVERVIEW * High efficiency = Chloramine decomposer = 254/340/405 NM — Specific wave lengths * Low power consumption * Longlifetime * High kill rate * Patented internal surface POTENTIAL CUSTOMERS * Planned to be launched Q3 2014 = Pure LED a
Slide 19: Provital's system integration capability accelerates testing and validation
* Provital’s system integration capability will allow LiqTech’s customers to accelerate the testing and validation cycle of LiqTech’s SiC solutions, while LiqTech’s worldwide sales presence will expand Provital’s sales opportunities * Increased operating leverage, improved engineering support, reduc
Slide 20: Customers and partners
PWT (EON) ASPWT _industriat EMVEES MIV) Emvees industrial Jiarong JIARONG industrial FMC FMCrermoiogis Oil & Gas Conconcreto ‘Conconcreto Oil & Gas. Unicalm URSSRIAN Oil & Gas Nakasawa Uae oil ecas Magni ho MAGNI Municipal ‘Saudi Arabia Mi try of Water E a & Electricity Municipal ean CELAR Water GRC
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Slide 22: 2013 Summary Financials
2013 SUMMARY FINANCIALS Liqlech Peo, COMBINED $12.8 Million $2.5 Million $15.3 Million $11.5 Million $0.7 Million $12.2 Million $1.3 Million $1.8 Million $3.1 Million [Netincome $(4.8) Million $0.8 Million $(4.0) Million $(3.2) Million $1.1 Million $(2.1) Million 27.2 Million ‘Source: Audited Financ
Slide 23: Target operating model after 2013
reseee 2013 LIQT Revenue $12.8M Liquid Silicon Carbide Filters 48% 60% Diesel Particulate Filters 41% 30% Kiln Furniture/Flat Sheet membrane 11% 10% Provital Revenue $2.5M MF Filtration 80% 30% UF Filtration 10% 15% Water Reclamation & Drinking Water 10% 15% UV LED Light 0% 40% Combined Revenue $15.
Slide 24: Management Team
Aldo Petersen Chairman Sune Mathiesen Provital CEO Soren Degn cro Kenneth Johansen Business Manager Liqlech MANAGEMENT TEAM CEO of APE Invest, a private investment company Co-Founded Telepartner (EuroTrust), a NASDAQ listed company sold in 2006 Previously ran Dansk Plastmontering A/S and Country Man
Slide 25: Leading provider in highly specialized, advanced and disruptive SiC membrane filtration
Vv wy Leading provider in highly specialized, advanced and disruptive Silicon Carbide (SiC) Membrane filtration for various end- markets including oil & gas, wastewater and drinking water Unique design and manufacturing expertise to produce the highest performing filters on the market SiC is one of
Slide 26: LiqTech
Liqlech
Slide 27: Provital EBITDA Reconciliation
PROVITAL EBITDA RECONCILIATION Fiscal Year Ended Reconciliation of net income (loss) to adjusted EBITDA: December 2013 Net Income (Loss) $799,136 Plus: Total Other Expense (Income) 64,385 Plus: Income Tax Expense (Benefit) 267,180 Plus: Depreciation and Amortization and _ Impairment i The Company be
Slide 28: LiqTech EBITDA Reconciliation
LIQTECH EBITDA RECONCILIATION Fiscal Year Ended Reconciliation of net income (loss) to adjusted EBITDA: December 2013 Net Income (Loss) (4,827,477) Plus: Income Tax Expense (Benefit) (1,611,561) Plus: Interest and Other Expense (Income) (6,806) Plus: Stock-Based Compensation 1,316,827 Plus: Interest
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