Stockholders` Meeting Presentation from December 2015

Transcription

Stockholders` Meeting Presentation from December 2015
Quantum
Technologies
December 2015
NASDAQ: QTWW
Unleashing Innovation
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
FORWARD-LOOKING STATEMENTS
This presentation contains certain “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1985. Forward-looking statements often address our
expected future business and financial performance, and often contain
words such as “may,” “could,” “will,” “should,” “assume,” “expect,”
“anticipate,” “plan,” “intend,” “believe,” “predict,” “estimate,” “forecast,”
“outlook,” “potential,” or “continue,” or the negative of these terms, and other
comparable terminology. These forward-looking statements are based on
management’s reasonable expectations and assumptions as of the date of
this presentation. Various risks and other factors could cause our actual
results to differ materially and adversely from those contemplated by the
forward-looking statements including, without limitation, the growth in and
adoption of the use of compressed natural gas in truck and vehicle
applications. The factors that may affect our results are listed in certain of
our press releases and disclosed in our public filings with the SEC. The
Company disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this
presentation to reflect any change in management’s assumptions, beliefs or
expectations or any change in events, conditions, or circumstances upon
which any forward-looking statements are based.
2
Unleashing Innovation
Driving transformational
change using innovative,
clean vehicle
technologies over the
past 20 years
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
A Leader in Advanced Fuel Systems and Storage
Technologies

Expertise: CNG storage tanks
and systems

Publicly-traded since 2002
(Nasdaq:QTWW)

Employees: 160

Innovate, design, engineer,
and manufacture CNG tanks
and fuel storage systems
within 150,000 square foot
campus in Lake Forest, CA

Strong customer
relationships and expanding
commercial alliances
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Unleashing Innovation
An industry leader in
Type IV CNG and H2
storage tanks, systems,
and technologies
Industry-Leading Type IV Storage Technology
Certifications
GRPE (EIHP)
NGV-2
Reiji Kijun
FMVSS 304
ECE R 110
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
4
Unleashing Innovation
Our Competition
Storage Efficiencies – L/Kg for CNG Tanks
5.13
3.90
3.55
2.77
2.26
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Quantum
Q-Lite®
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Unleashing Innovation
Our Impressive History in Innovating Storage
System Technology
Q-Lite® 5,000 psi
CNG storage
Achieved
record H2
storage
efficiency
Quantum has been
driving innovative
storage system
technology since 1999
First to certify
10,000 psi H2
storage tank to
international
standards
Certified allcomposite
Type IV
lightweight
CNG storage
technology
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Introduced
compressed H2
at 5,000 psi
Proprietary
Q-Lite®
Patented fiber
placement
technology
Optimized CNG/H2
storage efficiency
1999
2015
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Unleashing Innovation
Quantum is the first
company to certify a
5,000 psi CNG tank
Optimizing Storage Density Using 5,000 psi
Pressurization
Q-Lite® 5,000 psi
A 5,000 psi tank, compared to traditional 3,600 psi pressurization,
provides the following advantages:
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949

Energy density for virtual pipeline, marine, and ground storage applications

Storage capacity and system efficiency for trucking, mining, and locomotive
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Unleashing Innovation
Strong IP portfolio
established over the
past 20 years
Our Intellectual Property

Key IP in core competencies

Natural gas storage and metering

Fiber Placement for storage vessels

Proprietary manufacturing methodologies
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
8
Unleashing Innovation
Lake Forest, CA – Tank Production Facility
Expanded tank
production capacity
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
9
Unleashing Innovation
Lake Forest, CA – Fuel Storage Systems Assembly
Quantum designs and
manufactures fuel
storage system modules
within the same tank
production facility
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
10
Unleashing Innovation
CNG Back-of-Cab Fuel Modules – Q-Cab123
Quantum offers the
lightest-weight 3-tank
back-of-cab storage
system in the industry
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
11
Unleashing Innovation
Q-Cab160 & Q-Cab180 High-Capacity Back-of-Cab Systems
Quantum offers the
highest-capacity and
lightest-weight per DGE
storage system in the
industry, leveraging an
innovative 30” diameter
tank
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
12
Unleashing Innovation
CNG Fuel Module – Frame Rail Mounted
Quantum offers multiple
versions of a rail-mounted
storage system
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
13
Unleashing Innovation

Deliver value through a complete systems approach

Leverage our OEM-level systems and vehicle-level
engineering, quality control processes, and advanced product
and quality planning
Value to Customer
As a Tier 1 OEM-level
supplier, Quantum has a
history of delivering
value through tanks and
systems
Our “System Platform” Strategy
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Tanks
Storage Modules
Systems
Vehicle Integration
Leveraging Quantum’s System Capabilities
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Unleashing Innovation
Building value through
delivering systems to
our customers
Evidence Our Systems Strategy is Working

Established over 30 new customers for Q-Cab LITE and Q-Rail LITE
systems

Quantum systems going on trucks for every OEM

Expanding market share
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
15
Unleashing Innovation
CNG growth and
adoption is being driven
by many factors
What is Driving the CNG Heavy-Duty Truck Market?

CNG is the cheapest transportation fuel available

Expanding infrastructure

New innovations and engine technologies

Emission standards, carbon credits, incentives
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
16
Unleashing Innovation
Ryder announces
numerous customer
wins in 2014-2015 for
natural gas vehicles
Strong Commercial Alliances

Ryder partners with Quantum to offer new technology for
compressed natural gas truck fleets

5-year exclusive master supply agreement signed in 2014
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
17
Unleashing Innovation
Applying Storage Systems Technology into Multiple
Markets
Quantum’s Q-Lite tank
and systems technology
can be applied across
many industry segments
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
18
Unleashing Innovation
Quantum Virtual Pipeline Product – QVP650
Quantum’s VP650 has dual
1” 3,600 psi high-flow
receptacles and dual ½”
5,000 psi fill receptacles

Highest-capacity available:
645,000 SCF

Operates at 3600, 4200, or
5000 psi

Type IV Q-Lite Technology
3,600 psi
4,200 psi
5,000 psi
Competing
System
3,600 psi
Water Volume (L)
49,262
49,363
49,465
49,250
Gas Volume (SCF)
526,735
580,743
645,272
526,612
Gas Mass (lbs)
24,530
25,340
30,050
24,524
Operating Pressure (psi)
3,600
4,200
5,000
3,600
Diesel Equivalent (DGE)
3,641
4,014
4,460
3,640
Std 45' Trailer
Std 45' Trailer
Std 45' Trailer
Std 40' Trailer
Quantum VP650
Single control to open and
close all tanks
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Container on Trailer Dimensions
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Unleashing Innovation
Expanding industry
reach through
commercial alliances
Quantum and GAIN Clean Fuel Form Industry Alliance

No money down program for fleet operators

Cooperative and coordinated sales and marketing

Targeted build-out of 100 total stations in next 12 months
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
20
Unleashing Innovation
Highly experienced
team in brining
natural gas vehicle
systems to market
Our Management Team
Brian Olson, President and Chief Executive Officer



CEO since 2012
CFO and Treasurer 2002-2012
20 years of experience in the advanced vehicle technology industry
Mark Arold, Vice President of Operations


Engineering and executive positions with Quantum since 1994
20 years of experience in the advanced vehicle technology industry
Brad Timon, Chief Financial Officer



CFO and Treasurer since 2012
Controller and Chief Accounting Officer 2004-2012
11 years of experience in the alternative fuels industry
David Mazaika, Executive Director of Strategic Development

Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949


15 years of experience in alternative fueled vehicle development and
commercialization
Co-founder of ISE Corporation
Recipient of CALSTART’s “Blue Sky Award” (1997)
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Financial Overview
Unleashing Innovation
Targeting positive
trend in operating
performance
Financial Highlights


Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949

Expanding Revenues and Product Offerings

Growth in product sales through fist nine months of 2015

Launched second generation versions of back-of-cab and rail mounted
modules along with high capacity back-of cab module family (160/180
DGEs) during third quarter
2015 First Nine-Month Results

Product sales grew 60% year-over-year

Product margins negatively impacted by start up costs associated with
second generation product launches and costs associated with first
generation product retrofits; margin improvements expected in fourth
quarter

Lower S,G&A costs

Overall backlog of $21.6 million, of which $15.2 million associated with
product orders at 9/30/2015
Continued Focus on Natural Gas Vehicle Market

Anticipated revenue growth in 2016 based on position within over-the-road
HD truck market and commercialization of Virtual Pipeline products
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Unleashing Innovation
Achieved year-overyear revenue growth
of 39% in first nine
months of 2015
Results Year To Date (continuing operations)
Nine Months
Ended
9/30/15
Nine Months
Ended
9/30/14
($ in '000s)
OPERATING RESULTS
Revenue
Growth %
$29,337
39%
$21,103
10%
Gross Profit
Margin %
$1,870
6%
$3,597
17%
($11,196)
($9,087)
Operating Loss
As of
9/30/15
As of
12/31/14
BALANCE SHEET DATA
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Cash & Cash Equivalents
Working Capital
Total Assets
$2,409
$7,542
$47,881
$4,104
$5,491
$48,515
Debt Obligations:
Principal & Accrued Interest
Debt Discounts
Total
$18,209
($3,945)
$14,264
$16,859
($4,629)
$12,230
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Unleashing Innovation
Capitalization Table
Sept 30,
2015
Listed on the Nasdaq
Capital Market under
the symbol “QTWW”
Common Stock:
Shares authorized
Shares issued & outstanding
Shares designated
Undesignated shares available
Shares Designated:
Warrants:
Total outstanding
Convertible Notes:
Debt principal of $12,475,000
Quality Certification:
ISO 9001
ISO 14001
ISO/TS 16949
Stock Options:
Total outstanding and reserved
Weighted
Avg Price
50,000,000
28,024,039
13,760,192
8,215,769
7,922,191
$
4.99
5,236,312
$
2.38
601,689
$
7.59
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