iwg technologies investor presentation
TRANSCRIPT
Investor PresentationSeptember 2016 TSX-V: IWG
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.
• 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
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
Key Customers
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.
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
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
• 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
Products & Markets
OEM(Factory)
Post Production(Completion Centers)
After Market(In Service / STC)
Support(Maintenance)
IWG MARKETS SERVED
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
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
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.
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.
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
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
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
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.
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.
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