enerpulse designs, develops and manufactures nano-plasma assisted combustion (n-pac ™ ) devices a...
TRANSCRIPT
Enerpulse Designs, Develops and Manufactures
nano-Plasma Assisted Combustion (n-PAC™) Devices
A Major Breakthrough in Spark Plug Technology
Rev. 102714
2
Legal Disclaimer
This communication contains forward-looking statements, including statements regarding the Company's targeted business model. Forward-looking statements are identified by words such as "believe" "expect," "plan," "will," "should," "could," "anticipate," "intend," "estimate," and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. We based these forward-looking statements on our current expectations and projections about future events, and they speak only as of the date they are made.
Our actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements include a number of risks and uncertainties, including that the Company may not be able to implement its strategic priorities, or that if implemented they will not prove successful, decreased government spending on emission control projects or decreased regulation of emissions, the failure to secure required regulatory approvals, the failure to achieve or sustain customer acceptance of our products, as well as those described risks set in our reports filed with the SEC, especially in the section entitled "Risk Factors" in the Form S-1 filed with the SEC on January 3, 2014, all of which could have a material impact on our financial performance and prospects. Subject to any legal or regulatory requirements, we assume no responsibility to update any of the forward-looking statements contained herein.
The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the Securities and Exchange Commission for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the Commission's website at www.sec.gov.
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities of Enerpulse Technologies, Inc., nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
3
Corporate Profile
Exchange: OTC.QB Stock Symbol: ENPT
Recent Close: $0.45 (09/23/14) Fiscal Year End: Dec. 31
Shares Outstanding*: 13.7M (8/14/14) Market Cap: $6.18M (09/23/14)
52-Wk Range: $0.22 - $0.75
4
n-PAC™ Technology Benefits
n-PAC™
Technology Initiates combustion quicker and more consistently Extracts more energy from the fuel charge
Benefits Higher torque Faster throttle response Reduced fuel consumption Lower exhaust emissions
Compared to a Conventional Spark Plug
5
How n-PAC™ Technology Works
Electrical energy stored in the integrated capacitor
Spark gap ionization automatically triggers the capacitor to release all stored energy
Spark event begins with a very short 5MW blast from the capacitor
Air/fuel mix is ionized and saturated with energy-rich plasma
Following spark precisely and robustly ignites the ionized (destabilized) air/fuel mix
“It looks like a sparkplug… because it can”
6
How n-PAC™ Technology Works
Nano–Plasma Assisted Combustion
* Combustion Timeframe = 0.015 sec ; A:F = Phi 0.75
Traditional Fine Wire Iridium*
CombustionVolume
n-PAC™
Fine Wire Iridium*
CombustionVolume
5X volume
7
Investment Highlights
Nano-Plasma Assisted Combustion (n-PAC™
) Technologyo Directly replaces conventional spark plugso Effective in both Gasoline and NatGas fueled engines
Positioned for Growth in Large Addressable End Marketso 1 million units already sold into the Automotive / Power Sports Aftermarketo Revenue commencing in NatGas (mobile & stationary) segment during Q-4, 2014o Steady progress with Automotive OEMs
Extensive Patent Fieldo 21 active issued patents (expiration range 2018 to 2030)o 20 patents pending
8
Target Markets
Automotive OEM
NatGas
Automotive / Power Sports Aftermarkets
TAM = $9.7 Billion
Industrial Engines Vehicular
9
Marketing Plan Initiated
Broad Distribution
AFTERMARKET
10
AFTERMARKET
Enerpulse Consumer Advocate
Al Unser Jr:
Member of the Motorsports Hall of Fame of America
Two-time winner of the Indianapolis 500
Won the Charity Indy Legends Pro-Am Race 2014
11
NatGas – Industrial Engines
Market Drivers Lowering operating costs Meeting emissions regulation
Currently engaged with 9 beta sitesMarketing partnership with Freepoint Commodities
The Markets North American Installed base > 1 million engines Gasoline to NatGas engine converters Engine OEMs
12
NatGas – MobileFastest Growing Vehicle Class in the World (24%/Year)
Market Drivers Cheap, Abundant & Sustainable Fuel Supply Meeting emissions regulation Improved vehicle performance
Currently Testing with 8 NatGas Engine Converters / OEMs
The Markets Gasoline / Diesel to NatGas engine converters Engine OEMs Major vehicle OEMs “getting into the game”
13
Automotive OEM
Market Drivers Global fuel consumption regulations Global emissions regulations Consumer demand for better vehicle performance
Advanced Testing with 3 Major OEMs
The Markets Car manufacturers
o Passenger carso Light duty commercial vehicles
14
Proven Manufacturer
Manufactured over 1 million n-PAC™
-based units for the automotive and power sports aftermarkets
Current capacity to produce 2 million spark plugs/year
Demonstrated ability to transfer manufacturing technology to an existing Tier-1 automotive supplier
15
Projected Revenue Percentage by Segment
2014
NatGas (Sta-tionary and
Mobile), 31%
Automotive / Power Sports Aftermarket,
12%
Automotive OEM, 57%
2017
Automotive / PowerSports
Aftermarket75%
NatGas(Stationary
and Mobile),25%
16
Key Commercial Numbers
Automotive / Power Sports Aftermarket
NatGas (Stationary)
NatGas (Mobile)
Automotive OEM
Established North American Distributors 11 1
Active Beta Sites 9
Active Customer Test Programs 13 8
Average Selling Price $7 to $9 $17 to $75 $8 to $25 $4 to $6
17
Contact Information
For More Information:
Investor Relations
Scott Gordon
CorProminence LLC
516 222 2560
18
APPENDIX
19
Future Milestones
2014-2015
• Add Independent Board members• Commercial business in NatGas fueled stationary engine segment• LOI with Tier-1 spark plug manufacturer • Joint Enerpulse/AVL technical paper on faster catalytic converter light-off • Commercial business in NatGas fueled vehicle segment• Manufacturing Agreement with Tier-1 spark plug manufacturer• Cash flow positive in automotive aftermarket and NatGas fueled engine
segments• Two peer-reviewed technical paper
2016• Up list to major stock exchange• Secure first Automotive OEM platform nomination
2017 • Initial automotive OEM revenue and additional platform nominations
Accomplished Milestones
20
2004 Company founded
2007 First n-PAC™ units sold in Automotive / Power Sports Aftermarket
2011Advanced n-PAC™ technology developed for Automotive OEMs; Joe Gonnella becomes CEO
2012Company presents n-PAC™ technical paper at SAE World Congress; Testing begins at Automotive OEMs
2013
Freepoint invests in Enerpulse and marketing partnership signed; Major
Automotive OEM supports adoption of n-PAC™
technology; 1 millionth n-PAC™ unit sold; John Novak becomes VP OEM Sales
2014
Executed Public OfferingRacing legend Al Unser Jr becomes Enerpulse’s Pulstar® Pulse Plugs Performance ExpertInitiated marketing campaign to boost aftermarket salesHired Mathew Truster as aftermarket business unit managerEntered into Business Development Partnership with MAE Corporation
21
Intellectual Property
21 patents issued (US, EU, Canada, China, Mexico, Australia and Japan)
20 patent applications filed (US, EU, Canada, China, Mexico, Australia, Japan, India, Brazil and South Korea)
Enerpulse’s IP strategy is to aggressively build a comprehensive patent portfolio that will prevent any competitor from working around n-PAC
™
technology.
Management Team & Expert Tech AdvisorsSeasoned Professionals
22
Joe Gonnella – CEO35 year career in the automotive industry with GM, Engelhard Corporation and Wabash Technologies
Lou Camilli – President & CTOFounder of the company with over 25 years of experience in advancing the application of pulsed power
Bryan Templeton – CFO25 years of experience in financial management with Mobil Oil Corporation and Sandia Foods
John Novak – OEM Commercial Advisor35 years of sales and marketing experience in the worldwide automotive OEM market
Steve Smith – VP Manufacturing & Operations30 year career in spark plug manufacturing/technology with AC Spark Plug and Auburn Spark Plug
Dr. Timothy Jacobs PhD. – Technology Advisor, Combustion & FuelsRecognized expert in IC engine technology, Associate Professor at Texas A&M University, Assistant Vice Chairman of the ASME Internal Combustion Engine Division Executive Committee
Dr. Claude Phipps PhD. – Technology Advisor, Plasma PhysicsRecognized expert in plasma physics, MIT/Stanford, NASA, Lawrence Livermore, Los Alamos National Laboratories, multiple awards in the field of high power electronics