Slide 1: LianDi Clean Technology, Inc. Investor Presentation March 2011
S| LIANDI CLEAN TECHNOLOGY, INC. Investor Presentation March 2011 ; Ors
Slide 2: Confidential Information and forward-looking statements
CONFIDENTIAL INFORMATION. This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument. This presentation may include “forward-looking statements” within the meaning of Section 27A of the
Slide 3: Energy Demand
_— ae: Energy Demand
Slide 4: ; oust
; oust
Slide 5: Big But Small
Big But. smai id) ese) CNPC and Sinopec are giants CNPC § One but together they have more than 100 subsidiaries: Each refinery is an individual 1) Two of the Largest subsidiary Companies on the Earth 2) Annual Capital Expenditure Many oil sales subsidiaries of SBillions Many equipment subsidiaries o
Slide 6: Massive Expansion in Refineries
Massive Expansion in Refineries Environmental Regulations Oil Thirst Government Safety Mandates
Slide 7: Major Customers
Major Customers International Partners : “@ cameron tax) CNPC JOneC PR Pit RAS] SINOCHEM GROUP HOSE OR OFS BR a (ES) ‘SHENHUA GROUP CORPORATION LIKED PR SFiS 5] CHINA NATIONAL OFFSHORE OIL. CORP.
Slide 8: LianDi competitive advantages
PediemAa) ‘SINOCHEM GROUP. Oe OIE PERF om SAS) 1) 2) 3) 4) 5) 6) 7) @cameron &metso @amPo rotort BRA LIANDI CT In-House Engineering Staff of Dozens In-House Maintenance Staff proven Former Sinopec/CNPC Executives Tight Relationships with Petrochemical Institutes Favorable Contractual Terms Coordinat
Slide 9: Coking Technology and Oil Tank Cleaning Solutions
Coking Technology x LianDi’s Solutions e Oil Tank Cleaning
Slide 10: Capex per refinery and equipment sales
Average Cap ex per refinery: around $4.5 billion Total equipment sales for Liandi per refinery: $2-$20 million 40+ projects in backlog (most are in existing Drracarnee Cermeron QD aweme goa eee Dive rece tate COTE Demian Deere eo 10 ES coy Oil Refining Ba Hydrogen 9%
Slide 11: Petrochemical software
LianDi’s software is used by petrochemical companies for data collection, performance analysis and process optimization — Sold and installed 160 software packages in 4 facilities to date — Intensive design and testing requires close collaboration with local teams LianDi’s software holds several adva
Slide 12: Crude oil washing and Kikou distribution agreement
Crude oil washing (COW) removes residue from oil tanks by using an automated high temperature, high pressure system -- Chinese government now mandates that all oil storage tanks in China must be cleaned by machines, not people LianDi has a two-year exclusive distribution agreement with Japan System
Slide 13: Anhui Jucheng PAM acquisition
1B LianDi acquired a 51% equity interest in Anhui Jucheng for $6 million on July 5, 2010 = Aleading manufacturer of Polyacrylamide (“PAM”) specialty chemicals - Used in wastewater treatment and oil exploration - Located in Huaibei, Anhui - a major coal production base in Eastern China Current annual
Slide 14: Partnership with DeltaValve
Most Chinese refineries use 1950's LianDi’s partnership with Inefficient, dangerous and costly technology DeltaValve will modernize China’s refineries ASP ~ $3 million * queer pro
Slide 15: Solutions
SOLUTIONS Valves and Equipment Petrochemical Software Oil Field Chemicals Sludge Cleaning Technology Coal Gasification Rusting Solution Cracking Solution ? ? ort
Slide 16: Coal Gasification
Coal Gasification 6 quae
Slide 17: Share price and key financial metrics
7 Share Price (3/2/11) $3.5 Fully Diluted Shares Outstanding: 36.6 million Market Capitalization: $131.8 million Cash and cash equivalents: $41 million 03 2011 Revenues: $100.5 million 120% 03 2011 Adjusted Net Income*: $18.5 million A 64% Q3 2011 Adjusted EPS*: $0.46 AL Order Backlog: $47 million F
Slide 18: Revenue and Net Income
18 140 120 100 Revenue —= Net Income ort
Slide 19: Management team
Jianzhong Zuo, Chairman, CEO, President and Founder Mr. Zuo has almost 20 years management experience in the petrochemical and metallurgical industries. With enterprising and innovative operating ideas, he led his team to develop a fast growing company. He started Huashen Trading, a subsidiary of Li
Slide 20: Appendix
ara” ar APPENDIX » ques
Slide 21: Refining capacity and oil consumption in China
Refining capacity and oil consumption in China (100 million tons/year) 5 oil consumption refining capacity 2007 2008 2009 As of January 2009 crude oil refining capacity in China was 6.4M bbl/d at 53 facilities. China’s National Energy Administration’s (NEA) goal is to raise refining capacity to 8.8M
Slide 22: Valves and equipment distribution and project management
Broad range of valves and equipment used in crude oil transportation and storage, refining and petrochemical production LianDi is able to penetrate the equipment market because of its position as a leading qualified distributor and project manager — 60 engineers onsite to customize design and instal
Slide 23: Sample project timeline and payment flow
3/5/2008 3/6/2008 3/6-3/28/08 3/28/2008 3/28/2008 6/16/2008 8/11/2008 Fall 2008 10/16/2008 10/17/2008 10/18/2008 8/12/2009 Sign purchase order with Sinopec Purchase order executed with Cameron System design & specifications 30% down payment to Cameron by LianDi Cameron begins production *End of prod
Slide 24: Partnership with Curtiss-Wright
ffort LianDi has joined with Curtiss-Wright Corp. to make an affordable, environmentally friendly, and safe product for the Chinese marketplace * Exclusive distribution agreement in China signed on July 2008: — For unheading units used in oil refineries — Produced by Delta Valve, a subsidiary of Cur
Slide 25: Chinese tank cleaning market demand
Annual Demand for Chinese tank cleaning market is over $100M — ™ more than 60,000 oil storage tanks are utilized in China — ~3,000 efficient oil tanks, assuming all tanks in the capacity of 100K (“M?”) need to be cleaned per year = cost for each tank/wash is ~$300K = National Oil Reserve Base projec
Slide 26: rane
26 rane ANDI eT
Slide 27: @ HQCEC 2328 PREM TEE RAMA R)
@ HQCEC 2328 PREM TEE RAMA R) Chine petroleum Pipelie Engineering Corporation EMINA CHENGDA SHOMEERES CO.4TR. PEC ora rereociences enancznns corrornrow svtre [S) GatALEARoA fo EGLO eC TeAa (= ses essrreeess SINOPEC ENGINEERING INCORPORATION. - qQrese piety
Slide 28: Investor Relations
28 Investor Relations: HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: thaberfield@hcinternational.net ort