liquidmetal technology - Investor Relations Solutions

Important Cautions Regarding ForwardLooking Statements
OTCQB: LQMT
All statements in this presentation that are not based on historical fact are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private
Securities Litigation Reform Act of 1995). While management has based any forward-looking
statements contained herein on its current expectations, the information on which such
expectations were based may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of risks, uncertainties, and other
factors, many of which are outside of our control, that could cause actual results to materially differ
from such statements. Such risks, uncertainties, and other factors include, but are not necessarily
limited to, those set forth under the caption “Additional Factors That May Affect Our Business” in
the company’s most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we
operate in a highly competitive and rapidly changing environment, and new risks may arise.
Accordingly, investors should not place any reliance on forward-looking statements as a prediction
of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any
forward-looking statement.
Liquidmetal® is a registered trademark of Liquidmetal Technologies in the U.S. and other countries.
2
Key Stats: LQMT (OTCQB)
Stock Price 2/26/13
52 Week Low/High
$0.09
$0.08–$0.63
OTCQB: LQMT
Cash (mrq)¹
$7.2M
Total Assets (mrq)
$9.0M
Shares Outstanding (mrq)
255.9M
Total Liabilities (mrq)
$10.5M
Free Float
174.5M
Institutional Holdings
21%
Avg. Daily Vol. (3 mo.)
1.9M
Insider Holdings, est.
14%
Market Capitalization
$23.0M
Enterprise Value (mrq)
$18.2M
Employees (@ Sep 2012)
Founded
Fiscal Year End
Sources: S&P Capital IQ, SEC flings, company estimates
19
1987
Dec 31
3
What We Do…
OTCQB: LQMT
Liquidmetal Technologies develops and
commercializes a revolutionary class of metal
alloys
These unique alloys are redefining modern
manufacturing by combining the precision and
strength of machined metal with the intricate
molding capability of plastic
Unmatched strength-to-weight ratio, elasticity
and hardness are also redefining product
design, cost and performance
Our Liquidmetal alloys are made into highperformance parts for a broad range of
products and industries
Our extensive IP portfolio supports Liquidmetal
alloys as the only commercially viable bulk
amorphous alloys in today’s marketplace
4
Multi-Billion Dollar Opportunity
OTCQB: LQMT
Broad, high-value opportunity in
replacing traditionally-produced
metal parts with Liquidmetal
technology (materials and process)
U.S. precision metal machined
parts market: $30 billion¹
U.S. metal die casting parts
market: $35 billion²
Sources:
1) Capstone Partners. Precision Metal Manufacturing Coverage Report. “Market Intelligence for Industry Players.” Q1 2012
2) Freedonia Group http://www.freedoniagroup.com/Industrial-Castings.html
5
Key Industry Drivers
OTCQB: LQMT
Products are increasingly smaller and more
complex, creating a growing need for:
Smaller, high-value, machined components
Durability and corrosion resistance
Strong, scratch-resistant components
Lower cost, efficient production
Beautiful, mirrored finishes
As a bellwether of opportunity, the
investment by the Metal Products sector
is forecasted to accelerate to 9.2% in
2013, as output growth picks up. (Global
Machine Tool Outlook, Oxford Economics, Spring ’12)
6
We Address this Expansive Market with a
Revolutionary Class of Materials
OTCQB: LQMT
Discovered by researchers at Caltech,
Liquidmetal alloy has the amorphous
atomic structure of a glass
Breakthrough material technology
enabling metals to be molded like plastics
Ability to tailor the combination of
processing, cost advantage & proprietary
material composition
Liquidmetal alloy is at the forefront of the
3rd Revolution in Materials Science
Sampling of components made from
Liquidmetal alloy
7
Why Liquidmetal Alloys are Different:
Crystalline vs. Amorphous
OTCQB: LQMT
Crystalline Atomic Structure
Weak Region
In their molten state, conventional alloys possess
an “amorphous” or liquid-like molecular structure
After cooling to a solid state, conventional alloys
tend to crystallize into geometric atomic structures
These structures can create weak regions or break
points
Amorphous Atomic Structure
In contrast, Liquidmetal retains an amorphous,
liquid-like atomic structure even in its solid state
Liquidmetal alloys are stronger because they do
not have internal boundaries that create weak
regions or break points
8
Liquidmetal Technology Represents the
Future of Manufacturing
Unique Properties
The amorphous atomic
structure of Liquidmetal alloys
creates a unique set of
properties as compared to
conventional alloys:
Stronger than titanium
Bends without deformation
Highly resistant to corrosion
Wear & scratch resistant
Manufacturing & Cost
Advantages
Liquidmetal has superior “netshape” casting capabilities
that reduces costly postprocessing & machining.
It can be formed into complex
shapes using processes similar
to thermoplastics, making it
an ideal replacement for highvalue machined parts.
OTCQB: LQMT
Performance Advantages
Liquidmetal alloys have
distinct “real-world”
performance advantages over
other materials.
Precision as-cast geometry
Luxurious mirrored surfaces
Strong, durable, scratch
resistant parts
Pure Energy Transfer™
9
Liquidmetal Alloy Performance Advantages
OTCQB: LQMT
Strength
(ksi)
115
Strength-to-Weight
270
(ksi)
26
126
13
22
23
Magnesium
Aluminum
Titanium
Stainless
Steel
Liquidmetal
Alloy
Magnesium
16
8
Aluminum
Hardness
71
100
Magnesium
Aluminum
Source: Liquidmetal Technologies
Titanium
(% of Original Shape)
Liquidmetal
Alloy
2.00%
325
0.69%
0.35%
Titanium
Stainless
Steel
Elasticity
550
(Vickers)
340
45
Stainless
Steel
Liquidmetal
Alloy
Magnesium
0.44%
0.10%
Aluminum
Titanium
Stainless
Steel
Liquidmetal
Alloy
10
Target Markets
OTCQB: LQMT
Substituting CNC (Computer Numerical Control)
-machined parts with injection-molded parts
made from Liquidmetal alloy
Advantages of injection-molded parts over CNCmachined parts:
Reduce secondary processing of finished goods
Faster part production
Lower energy consumption, reduced floor space
requirements
Higher strength, lower weight & improved resistance
to corrosion
Initial target markets:
Aerospace & Military
Medical Devices
Sporting Goods
11
Aerospace & Military Applications
OTCQB: LQMT
Liquidmetal alloys are featured in military
prototypes:
Qualified for use in tailfins and wings of
airborne devices
Liquidmetal alloy advantages:
Near-net-shape casting ensures highest
degree of accuracy, resulting in precise &
predictable flight patterns
Strong, lightweight material
Minimal post-mold processing
Typical aerospace & military program life:
10+ years
U.S. Army ballistic tests have shown
Kinetic Energy Penetrator (KEP) rods
made with Liquidmetal alloy exhibit
self-sharpening characteristics similar
to those made with depleted
uranium.
12
Medical Device Applications
OTCQB: LQMT
Biolase Technology features Liquidmetal
Used in the “ezlase Diode Dental Laser
System” housing
Also used in the “iLase” handhold laser pen
for dental procedures
Liquidmetal Alloy advantages:
Compact size and ergonomic shape
Production costs in line with plastic
injection molding
Strong material with thin walls
Typical medical device program life: 5+ years
Biolase’s iLase dental laser pen
13
Sporting Good Applications: Golf
Partnered with iGolf Technologies, a
leading original design manufacturer, to
develop clubs featuring Liquidmetal alloy
3rd Generation Liquidmetal Advantages:
Increased performance
Further distance
Improved trajectory
Improved durability and strength
OTCQB: LQMT
For golf clubs,
Liquidmetal is
about
Pure Energy
Transfer™
Development:
iGolf will leverage its development partners,
PERFORMAX and PADERSON, to produce the
club shells and shafts
Liquidmetal to manufacture club face insert
Prototype clubs to be marketed to major global
golf manufacturers
14
Special Applications: Swatch
OTCQB: LQMT
Liquidmetal technology was used for the first time in
2009 for the Omega Seamaster Planet Ocean, and is
now featured in the Omega Planet Ocean Titanium
The bezel blends Liquidmetal alloy with ceramics, a
technological world premiere, according to Swatch
Liquidmetal alloy fuses at a temperature half that of
conventional titanium alloys, but when cooled is 3x
tougher than stainless steel, “creating stunning bezel
which will retain its beauty forever”
Click here to view a video of the unique manufacturing
process
The Swatch Group is the world's foremost manufacturer of watches with 19 brands:
Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Tiffany &
Co., Longines, Rado, Union Glashütte, Tissot, ck watch & Jewelry, Balmain, Hamilton,
Certina, Mido, Swatch, Flik Flak, and Endura
Omega Planet Ocean
Titanium
15
Competitive Advantages
OTCQB: LQMT
Disruptive technology with foundational IP:
55+ U.S. patents owned or licensed, and
numerous pending
Products with numerous performance
advantages
Technology validation: major global
licensees include The Swatch Group & Apple
Strategic partnerships: world-class
companies currently working to
commercialize the technology
16
World-Class Partnerships
OTCQB: LQMT
Produces high-quality Liquidmetal alloy feedstock
Pursuing sales opportunities where introduction of
Liquidmetal can provide a unique material solution
(NYSE:MTRN)
World’s technology leader of injection molding machines
Makes certified production injection molding equipment
that has been re-engineered to process Liquidmetal alloy
An industry leader in mold manufacturing and injection
molding post-processing
Utilizes licensed injection molding process and on-site
manufacturing of highly specialized molds
17
Business Strategy
OTCQB: LQMT
We Leverage Highly-Capable Partners to Commercialize
Our Production Technology
Amorphous Alloy
Production
Injection Molding
Equipment
Contract
Manufacturing
Volume Production
Parts for Customers
Financial Model
OTCQB: LQMT
IP-centric business model
Partnership model provides financial &
operational leverage
Liquidmetal leverages its world-class partners
for low overhead and low capital
requirements
Revenue sources:
IP licensing
• Upfront license payments
• Recurring royalty stream
Manufacturing
• Volume production of Liquidmetal parts
for customers
19
Measuring Our Success
OTCQB: LQMT
Prototype Shipments
3 - 12 month process
Assess need, create mold, ship products,
install, test, measure, etc.
General Shipments
12 - 24 month process
Revenue will ramp in this phase
Development Agreements
Co-development with category-leading
companies
Collaboration that leverages strengths of
both companies
License Agreements
3rd Generation Liquidmetal Progress
2011
2012
Total
Prototype
Shipments
3
10
13
General
Shipments
-
1
1
Development
Agreements
-
1
1
License
Agreements
-
-
20
Corporate Timeline
2010
OTCQB: LQMT
- Revenue Ramp
2014
- General Shipping
- Licensing Agreements
- Prototype Parts
2013
Nov 2012 - Shipped first production parts
NOMAD
Sep 2012 - Materion and Nomad Sales alliances
July 2012 - Completed $12M funding
Jun 2012 - $3M equity and partnership with Visser Precision Cast
2012
Mar 2012 - Began shipping commercial parts using 3rd generation
injecting molding machine (Key turning point)
Nov 2011 - Materion Brush partnership
Sep 2011 - Formed strategic alliance with ENGEL
2011
Mar 2011 - The Swatch Group license becomes exclusive in watches
Aug 2010 - Apple signed exclusive license for consumer electronics
21
Key Takeaways
Revolutionary technology: changing the
way world-class companies design and
manufacture parts
OTCBB: LQMT
Multi-billion dollar addressable market,
with high barriers to entry
Expanding IP portfolio validated by
global licensees
IP-centric business model: leverages
partners for scalability and low capital
requirements
Initial commercial shipments underway
22
Contact Us
OTCQB: LQMT
Liquidmetal Technologies
Tom Steipp, President & CEO
Tony Chung, CFO
Tel 949-635-2100
Investor Relations
Matt Glover or Michael Koehler
Liolios Group, Inc.
Tel 949-574-3860
[email protected]
Corporate Offices
30452 Esperanza
Rancho Santa Margarita, CA 92688
www.liquidmetal.com
23