iwg technologies investor presentation

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Investor Presentation September 2016 TSX-V: IWG

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Page 1: IWG Technologies Investor Presentation

Investor PresentationSeptember 2016 TSX-V: IWG

Page 2: IWG Technologies Investor Presentation

Forward Looking Statements

This presentation may contain projections or other forward-looking statements regarding IWG Technologies Inc.' (the "Company"), its business, operations, technology or the markets in which it operates.

These projections and forward-looking statements are based on management's current expectations, beliefs, assumptions, estimates and forecasts about market conditions and other factors.

The projections or forward-looking statements included herein or otherwise made orally or in writing from time to time are not guarantees of future performance and involve certain risks, uncertainties and

assumptions that are difficult to predict as well as factors beyond the Company's control.

Actual outcomes and results may differ materially from those expressed in such projections or forward-looking statements.

Page 3: IWG Technologies Investor Presentation

• Publicly traded company on the TSX Venture Exchange under Ticker: V.IWG

• Vehicle for growth outside of International WaterGuard Industries Inc. market.

IWG Technologies Inc.

• Wholly owned subsidiary of IWG Technologies.

• Only operating business of IWG Technologies.

IWG-T

IWG-I

Page 4: IWG Technologies Investor Presentation
Page 5: IWG Technologies Investor Presentation

VISION: Be the leader in innovative aerospace water products.

MISSION: Deliver the very best aerospace water components by maximizing value in everything we do.

OUR PRODUCTS resolve complex problems and meet challenging customer requirements.

International Water-Guard IndustriesIWG-I

Benefiting from a solid foundation of over 3500 deliveries and 32 years experience in Aviation Potable Water Solutions

Page 6: IWG Technologies Investor Presentation

Key Customers

Page 7: IWG Technologies Investor Presentation

Revenue and Net Income Trend

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Revenue Net Income

Five year compound annual growth rate of 17% revenue and 41% net income.

Page 8: IWG Technologies Investor Presentation

International Water–Guard Industries Inc.

• Subsidiary of IWG Technologies (public company IWG.V)

• Focused on aviation potable water components

• Robust balance sheet

• $9.5M sales, profitable & growing

• Growing at >10% year over year

• Strengthened Management Team

• Expanding product line & client base

Benefiting from a solid foundation of 33 years experience in Aviation Potable Water Solutions

Operating Business

Page 9: IWG Technologies Investor Presentation

Building a Foundation For Growth

AS9100 Certified Aerospace Quality System

Approved Manufacturing Organization 120-97

Approved Maintenance Organization(AMO) 120-97

EASA Part 145 Accepted AMO

Continued enhancements to the business in 2016:

Implementing a new company wide ERP system for efficiency.

Programs group established for centralized customer and

product management.

Revenue per employee (USD):

2012 35 staff: $171,000

2013 37 staff: $175,000

2014 39 staff: $175,000

2015 40 staff: $190,000

Page 10: IWG Technologies Investor Presentation

• Complimentary to water treatment

• Flexible design

• Configurable parts

• Compact solutions

• Smallest, & smartest heaters on the market

• Clear industry leader

• Wide range of solutions

The Business of IWG-I

Water Treatment

(Sterilization)

Water Heating

Water Quality

Water Distributionand Storage

• Wide range of solutions

• Taste & odor

Page 11: IWG Technologies Investor Presentation

Products & Markets

OEM(Factory)

Post Production(Completion Centers)

After Market(In Service / STC)

Support(Maintenance)

IWG MARKETS SERVED

Page 12: IWG Technologies Investor Presentation

2011 2012 2013 2014 2015 2016

2010

NPS-A6IWG-A4NPS-A2NPS-A3

NPS-A6 NPS-A6 NPS-A6 NPS-A6 NPS-A6 NPS-A6

IWG-A6 IWG-A6 IWG-A6 IWG-A6

IWG-UV1 IWG-UV1

IWG-A6 IWG-A6

IWG-A7 IWG-A7

NPS-A3 NPS-A3

IWG-I Product Line Growth

IWG-ES7 IWG-ES7 IWG-ES7 IWG-ES7 IWG-ES7

IWG-T IWG-T

IWG-M1 IWG-M1 IWG-M1

IWG-A4 IWG-A4

2010

NPS-A6

Pumps Pumps Pumps Pumps Pumps Pumps Pumps

NPS-A3

Tre

atm

ent

Hea

ting

Pre

ssur

e /

Dis

trib

utio

n

Page 13: IWG Technologies Investor Presentation

Core Capabilities

Management

Finance

Engineering

Quality Systems

Customer Service

Market Access

Business Aircraft

VIP Aircraft

Head of

State Aircraft

Special Ops Aircraft

Water Treatment

Water Heating

Water Distribution

Water Quality

Commercial

Military

Aviation

Solutions

Today

Other

Future

Transport

Opportunities

IWG-I Market Reach

Aviation

Page 14: IWG Technologies Investor Presentation

When your aircraft’s water is protected with IWG’s UV Water

Treatment Unit, you ensure crew and passenger safety and satisfy

regulatory requirements.

Fly with the knowledge that you can safely upload potable water from

airport in the world.

By eliminating bottled water on board – and adopting IWG’s UV water

treatment technology – your airline will reduce costs, increase revenue

and keep everyone onboard safe with clean, fresh potable water.

Page 15: IWG Technologies Investor Presentation

Aftermarket /Commercial Aviation

Building on our experience in VIP aircraft installations of our UV potable water treatment products.

Investments in commercial aviation:

• Product development of airline water treatment solutions.

• Regulatory approvals (STC) for Boeing 737 installation announced March 31/16.

Page 16: IWG Technologies Investor Presentation

The Way Ahead:Strategic Development

• EVP role created in parent company and filled by Darryl Jacobs (ex-president of IWG-I) to plan and implement a significant growth strategy for IWG-T.

• Focus is on strategic growth beyond potable water products and markets of IWG-I:- Merger & Acquisition Opportunities- Strategic Partnerships- Industry Positioning

Page 17: IWG Technologies Investor Presentation

Strategic Development

New Products

Internal DevelopmentAcquire product lines

Technology Partnerships

Additional water componentsNew uses of our technology

to solve other aviation problems

Merger & Acquisition

Bolt on BusinessStrategic fit to IWG-TStrategic fit in IWG-I

Accelerated GrowthIncreased Market Share

Tier 1 / 2 Positioning

Current Products

New TechnologiesDerivative Products

Commercial / Military AviationNon-Aviation Transportation

Improve Competitive Position

IWG-T Initiatives

IWG-T & IWG-I Initiatives

IWG-I Initiatives

Page 18: IWG Technologies Investor Presentation

Summary:Key Financial Indicators

• Continuing Our Growth Path – Fiscal 2015• $9.5M revenue, 29% above 2014

• $1.75M pre tax income vs. $1.04M in prior year

• $1.3M net income (3.3 cents / share) vs. $0.75M (2.0 cents / share)

• Revenue Upside 2016 and beyond• Expand sales reach with OEM’s, Completion /Modification Centers

• Pursue new opportunities in the aftermarket / Commercial Aviation sectors

• Actively pursue M&A opportunities

• Solid balance sheet• $3.35M cash/cash equivalent

• Small debt and unused credit facility of $500K

Page 19: IWG Technologies Investor Presentation

IWG-I Management Team

19

David Pohl,

Director of Engineering

Extensive program management experience

in the commercial aviation and naval

industries. With IWG-I since 2001.

Deborah McGuire

Director, Quality Programs

Heads IWG’s QA QC programs. Aviation

background and industry certification

AS9100/ISO 9000. With IWG-I since 2011.

Gerald Eiers

VP of Business Development & Sales

Manufacturing, marketing, and sales

background. With IWG-I since 1997.

Steven Bis

Senior VP and General Manager

Extensive background in aerospace

management, manufacturing and process

improvement. With IWG-I since 2014.

Robert Gronfeldt

Vice President Finance

Chartered Professional Accountant (CMA).

With IWG-I since 2009.

Page 20: IWG Technologies Investor Presentation

IWG-T Board of Directorsand Team

• Bruce Gowan, ChairmanDirector & former Chief Financial Officer at Magellan Aerospace

• Bruce G. MacCoubrey, President IWG-T, Director

Aviation consultant with 40 years aviation experience, former CEO, Int. Water-Guard

• Michael J. Piscatella, Director President and owner, ALM Technologies Inc., FL.

• Michael A. Evans, DirectorPrincipal, Evans & Evans Inc., Vancouver

• Ted C. Butterfield, Chief Financial Officer & Corporate SecretaryCFO of IWG since 2000, Finance role in aviation 27 years.

• Darryl E. Jacobs, Executive Vice President26 years of Aerospace product development, certification & management experience.

Page 21: IWG Technologies Investor Presentation

IWG Technologies Inc. & International Water-Guard Industries Inc.

Unit One - 3771 North Fraser Way, Burnaby BC V5J 5G5 Canada

Tel: (604) 255-5555, 1-800-667-0331 Fax: (604) 255-5685

www.water.aero www.iwgtech.com

Symbol IWG.VShares Listed TSX Venture ExchangeTotal Issued 39.36 million shares Fully Diluted 40.96 million shares No Warrants

No Equity issued since 2008

Year End September 30

We Will Soar