dynacert investors presentation february 2016

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Page 1: dynaCERT Investors Presentation February 2016

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Page 2: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

February 2016

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Page 3: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

This Presentation/Document is based upon information supplied by the management of dynaCERT Inc. ("dynaCERT" or the "Company") and is being furnished on a strictly confidential basis, solely for use by prospective investors.

Each recipient of this presentation/document agrees that all of the information contained herein is confidential and is not to be used for any purposes whatsoever except to assist the recipient in evaluating the Company. Each recipient agrees to keep the information contained herein in strict confidence and, neither directly nor indirectly, to reproduce or transmit in any form or by any means any of the information contained herein or to disclose such information to any person, firm, or corporation without the prior written consent of the Company.

dynaCERT Inc. expressly disclaims any and all liability for any representation or warranties, expressed or implied, contained in this presentation/document or for omissions from it. Only those particular representations and warranties that may be made in a definitive agreement respecting any proposed transaction, if and when executed, shall have legal effect.

This presentation/document contains forward-looking statements reflecting dynaCERT’s current forecast of certain aspects of the Company's future. It is based on current information that has been assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements may include, without limitation, statements regarding growth projections, including financial forecasts and the projected rollout of the Company's products.

dynaCERT’s actual results could differ materially from those stated or implied by the Company's forward-looking statements due to risks and uncertainties associated with its business, including, but not limited to:

• The requirement for significant financing to develop and market its technology;

• The ability to establish and maintain arrangements with industry recognized strategic partners;

• Market acceptance of the Company's technology and products;

• Competition in all aspects of its business;

• The effect of general economic, credit and capital market conditions on its business;

• The ability to complete product development milestones and progress towards commercialization of product within the contemplated timetable;

• The ability to attract and keep highly qualified staff and management; and

• Changes in product profit margins due to pricing changes driven by variations in customer demand, competition, or unforeseen factors.

The Company's forward-looking statements should be considered in the context of these and other risk factors.

All future written and oral forward-looking statements made by the Company on its behalf are also subject to these factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Securities laws vary between Canadian provinces and investors should seek independent legal advice regarding compliance with applicable securities laws in connection with any investment in the Company.

The securities of the Company are not registered under United States securities laws.

This presentation/document is not a prospectus or a public offering in any jurisdiction.

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Page 4: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com4

A Cutting Edge Tech Company Positioned for

Dynamic Growth and a Solid ROI

The Benefits of our Technologys

Reduced Fuel ConsumptionReduced Emissions

Reduced Maintenance

Reduced Vehicle Downtime

Increased Engine Oil Life

Increased Torque

Page 5: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Market Characteristics209,499,971 shares on the market of which 50% are closely heldTrades on the TSX:V (DYA) OTCBB: (DYFSF)

Wayne Hoffman, Director / Dr. Elliot Strashin, Director / Robert Maier, DirectorRon Perry, Director / Dr. Richard Lu, Director

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dynaCERT Inc.501 Alliance Avenue, Suite 101Toronto, ON M6N 2J1Tel: 1.416.766.9691

Management and Board of Directors

Jim Payne Yumey Fernandez Gonzalo Labbe Michael ElwoodPresident & CEO Interim CFO & Senior Operations Marketing Sales

Director Corporate Secretary General Management Brand Development

Page 6: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Mr. Peter Ross – Product DevelopmentMr. Ross graduated from George Brown College in management and began his career in plant management and quickly moved into

custom machining, fabrication and design of non-metallic components and point of sales items. In early 1995 Peter started his own

company which grew into an aerospace specific supplier with 40 employees and sales in excess of $4 million in profits. The company

supplied parts in numerous manufacturing disciplines, including but not limited to machining, metal stamping, welding, sewing and assembly to AS9100 standards. Peter joined dynaCERT’s Product Development team in June 2013.

Mr. Gonzalo Labbe, - Operations

Senior Operations/General-Management Executive working in South America in Transport, Oil & Gas, and Retail/Service industries, with

vision and leadership, insights to strategically plan, direct and control multitask company operations. With expertise in building/improving

organizational processes, measurement systems and infrastructure to maximize business results in manufacturing and service operations

in multiple plants and products companies, managing profitable relationships.

Mr. Valdis Martinsons, M.A.Sc., M.B.A., P.Eng. – Technology Advisor

Mr. Martinsons is a Senior Level Executive with a track record of providing leadership in businesses where technology is mission critical or

technology is core to the business; including start-ups, high growth oriented ventures, global corporations and growing technologically

innovative organizations.

Mr. Derk Z. Maat, M.Eng., P.Eng. – Business/Environmental Advisor

Mr. Maat has over 37 years of professional experience in the environmental field where he has been involved in research and

development, consulting, design, construction engineering, technology development, and marketing.

Mr. Prabhjeet S. Garewal, B.A. Hons, English Literature, Economics – Business Marketing Advisor

Mr. Garewal brings a wealth of experience in sales and relationships with both the business and political world in Canada and abroad. He

is also active in fundraising for varies foundations as well as for political purposes.

Mr. Tristram Coffin, O.O.D. – Business/Marketing Advisor

Mr. Coffin has over 40 years of professional expertise in one of Canada's most prestigious optical businesses. He sits on many advisory

committees, is a director of a public company, and worked in the brokerage business assisting in bringing numerous companies public.

Mr. David Bridge – IT Manager

Mr. Bridge is a certified IT manager with 20 years experience in managing technology operations and multi-million dollar corporate

ventures. Accomplished leader with extensive knowledge of restructuring and streamlining IT to increase efficiency and reduce cost,

Expertise in the design and delivery of customer focused, cost effective, scalable and high performance IT infrastructure and applications.

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Page 7: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Started as Dynamic Fuel Systems Inc.

JetStar unit produced HHO (Brown’s gas)

Small sales generated

2010 engine testing revealed separate gases provide unique characteristics

Developed Patent Pending system that separates hydrogen and oxygen

Field trials with Pepsi on Detroit Diesel Series 60 engine through 2012 produced POSITIVE RESULTS

REFOCUSED AND STRENGTHENED BUSINESS MODEL

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Page 8: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com8

Rising Fuel Prices & GHG Emissions

Global Problem

Shipping & transportation sectors highly vulnerable

2010 Clinton Global Initiative - World Health Organization Commitment to reduce carbon emissions and pollution

Transportation sector consumes 40% of total energy[1,2]

Combustion engines represent over 40% of GHG Emissions[1,3]

CO2Black Carbon

Particulate MatterNitrous oxides

Page 9: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com9

HydraGen™ Enhances Combustion

Supplies engine with pure hydrogen and oxygen gases

Generates a faster and more complete combustion [4,7,8]

Increases fuel economy [4,7,8]

Reduces emissions [4,6-8]

Dramatic Fuel Improvements

Page 10: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

How it WORKS

9X flame speed vs diesel

Stable flame front

Removes emissions atthe SOURCE

Complete combustionburns more diesel

Counteracts efficiency reducing “solutions”- EGR, SCR, DPF

HydraGen™ lets DIESEL DO DIESEL

LEAN BURN = LESS FUEL

More oxygenie. Turbocharger

Supercharger

More high pressure steam

Improved cylinder temperature regulation

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Page 11: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Increasing Fuel Economy

Lowering Emissions

HydraGen™Our Technological Solution

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Page 12: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Reactor, plumbing and gasket materials upgraded

Weather tight housing with vibration dampeners

40% weight reduction

New level sensors

Unit easily maintained and serviced

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Page 13: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Brains of the HydraGen™

Electronically optimized gas injection

In-cab tablet display

Displays key operational parameters

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Page 14: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Heavy duty Detroit Diesel Series 12.7L

Pepsi Beverages Company HydraGen™

August 2011

CARB executive order (D-697)

granted May 2012

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Milestones

Page 15: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com15

Impact of HydraGen™on Fuel Economy

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5

6

7

8

9

10

0 1 2 3 4 5

Fuel Econom

y (M

PG

)

Week

HydraGen™

No HydraGen™

10-20%

Page 16: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

International Market

Tighter configurationLess Room between cab and trailer

North American Market

Lots of room for installUnit size can be larger

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Page 17: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Market Growth

Global Oil Consumption

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Page 18: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com18

Current Market Focus

On-Road

Class 6 – 8 enginesTractor-trailers and buses

Power Generation

6000hp – 30,000hp engines Widely used in remote locations Provides simple transition to Marine/Rail

Increase Profitable Market Share Accelerate Market Penetration in Two Primary Sectors

Page 19: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com19

Future Market Penetration

On-Road

Global market is large, dynamic and mature

Continue work with Large Trucking Fleets to further establish our technology

Develop distribution agreements in overseas markets

Establish testing opportunities with OEM for use with EGR systems

Agreements, and ongoing testing with Pepsi Co., Schneider, TTSI and Navistar

Page 20: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com20

Potential Market Penetration Power Generation

Consume tonnes of fuel (diesel – Heavy Fuel Oil) per day Significant emitters of GHG (CO2, Sulphur, Black Carbon, Nitrous Oxides) Increased environmental restrictions beginning to take effect

Applying Our technology

Fuel savings – potential to save millions of dollars per year per unit Significant reduction in GHG emissions Reduced maintenance downtime

Page 21: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

dynaCERT creates winning situations through strategic global sales and marketing partnerships

dynaCERT’s partners maintain global relationships with large fleet operators, government agencies and utility providers

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Page 22: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Corporate Growth

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Page 23: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

Road proven technology

We have the right team

Working with Fleets to:

Reduce Fuel Costs

Reduce Emissions

Reduce Maintenance Costs

Partnerships providing endless possibilities

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Page 24: dynaCERT Investors Presentation February 2016

TSX:V DYA

OTCBB: DYFSF

www.dynaCERT.com

1 Kokjohn, S., Hanson, R., Splitter, D., & Reitz, P. (2010). 2010 Climate Leadership Challenge. InThe CORE concept for economic and environmental sustainability of mobile and stationary sources of power Generation. Wisconsin

2 US Energy Information Administration. How much energy is consumed in the world by each sector? (2014). Washington.

3 US Energy Information Administration. Emissions of GreenHouse Gases in U.S. (2011). Washington.

4 Masood, M., Ishrat, M., & Reddy, A. (2006). Computational combustion and emission analysis of hydrogen–diesel blends with experimental verification. International Journal of Hydrogen Energy, 32, 2539-2547. (2006, December 26). Retrieved September 13, 2014.

5 Aspden, A., Day, M., & Bell, J. (2011). Turbulence–flame interactions in lean premixed hydrogen: Transition to the distributed burning regime. Journal of Fluid Mechanics, 287-320. Retrieved September 17, 2014.

6 Lilik, G., Zhang, H., Herreros, J., Haworth, D., & Boehman, A. (2010). Hydrogen assisted diesel combustion. International Journal of Hydrogen Energy, 35, 4382-4398.

7 Bose, P., & Maji, D. (2009). An experimental investigation on engine performance and emissions of a single cylinder diesel engine using hydrogen as inducted fuel and diesel as injected fuel with exhaust gas recirculation. International Journal of Hydrogen Energy, 4847-4854. Retrieved September 12, 2014.

8 Premkartikkumar, S., Annamalai, K., & Pradeepkumar, A. (2011). USING HYDROGEN AS A FUEL IN AUTOMOTIVE ENGINES - AN INVESTIGATION. INTERNATIONAL JOURNAL OF INNOVATIVE TECHNOLOGY AND RESEARCH, 1(1).

9 Momin, G. (2014). Emission Control Using Hydrogen As An Additive With Diesel”. IOSR Journal of Engineering, 4(1), 26-31.

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