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| 8-K - FORM 8-K - QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC. | d263504d8k.htm |
 Quantum Fuel Systems Technologies
December 2011
NASDAQ: QTWW
Exhibit 99.1 |
 Forward-Looking
Statements
2
All statements included in this presentation and any documents incorporated herein by reference, other
than statements of historical fact, are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended. Examples of forward-looking
statements include, but are not limited to, statements regarding our expectation that we will be
able to raise a sufficient level of debt or equity capital to fund our operations, our belief that our
current operating plan will allow us to achieve profitability, our expectations of future
revenue, expenses, gross margin and operating profit (loss), the level of growth in the hybrid,
plug-in hybrid and fuel cell and alternative fuel industries, when our Q-Drive powertrain architecture and
other products and technologies will be commercialized, our plans to develop new lower cost
technologies, when Fisker Automotive will go to production, the number of vehicles that Fisker
Automotive expects to sell, our belief that we will be a supplier to Fisker Automotive on a
long-term basis, our expectation of liquidity requirements to fund our operations and debt,
our intentions to commission a solar manufacturing facility in southern California, our expectation
that the US, state and local governments will continue to support the advancement of
alternative fuel technologies through loans, grants and tax credits, our belief that we have a
competitive advantage over our competitors, our intentions to support the growth of our subsidiary,
Schneider Power, Inc., and our German affiliate, Asola, our and Asola’s intentions to establish
joint development programs and strategic alliances with leaders in the alternative energy
industry, our relationship with General Motors and the impact such relationship will have on
our ability to develop our products, the impact that new accounting pronouncements will have on our
financial statements, and the effect that an adverse result in Asola’s dispute with its solar
cell supplier could have on our financial statements.
Forward-looking statements can generally be identified by 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. Although we believe the expectations and intentions
reflected in our forward- looking statements are reasonable, we cannot assure you that these
expectations and intentions will prove to be correct. Various risks and other factors,
including those identified in the “Risk Factors” section of our Annual Report on Form 10-K and
our other SEC filings could cause actual results, and actual events that occur, to differ materially
from those contemplated by the forward looking statements.
Many of the risk factors are beyond our ability to control or predict. You should not unduly rely on
any of our forward-looking statements. These statements are made only as of this
presentation. Except as required by law, we are not obligated to publicly release any
revisions to these forward-looking statements to reflect future events or developments. |
 Underwriters
Merriman Capital and JP Turner
Quantum Fuel Systems Worldwide Technologies, Inc.
Issuer
Exchange: Ticker
NASDAQ: QTWW
Offering Size
Up to $20MM
Timing
Early December
Terms
TBD
Offering Details
Market Overview
52 Week High/Low
$10.80/$1.36 (as of 11/28/11)
$1.36 (as of 11/28/11)
Closing Share Price
Market Capitalization
$22.0MM (as of 11/28/11)
Shares Outstanding
16,091,054 (as of 11/18/11 from Prospective Supplement
filing) Cash -
Debt
$4.5MM
-
$18.3MM
(as
of
7/31/11)
LTM Revenue
$23.469MM
Offering Details & Market Overview
3 |
 •
Fully integrated alternative energy company
•
Leader in the development and production of:
–
Advanced clean propulsion systems
–
Renewable energy generation systems and services
4
The Company
Electric Drive Systems
Fuel Storage Systems
Wind
Solar |
 •
Improving financial metrics
–
Strong revenue growth
•
Fisker Karma PHEV in production
–
Delivered first two production vehicles in October 2011
–
Quantum has shipped
3,000 Q-Drives CYTD
–
Anticipated revenues: $50MM in FY2012
•
$80 million in key new contract awards during 2011, including:
–
$24MM in Fisker contracts
–
$14MM in new F-Drive contracts (Florida Light & Power, Dow Chemical)
–
$16MM in new H2 tank system contracts; GM, Daimler, Honda & others
•
Pipeline
of
over
1
gigawatt
of
wind
and
solar
projects
–
Schneider
Power
–
Located throughout North America and Caribbean
–
Highly attractive target IRR model (25%)
•
Strong intellectual property portfolio
–
21 issued U.S. and foreign patents
–
25 pending U.S. and foreign patents
–
Proprietary Processes/Know How
–
Q Drive™
•
Experienced management team
–
Over 100 combined years of experience in the business
5
Key Investment Considerations |
 •
Uniquely
positioned
to
integrate
advanced
fuel
systems,
electric
drive,
software
control
strategies and propulsion control systems technologies
•
Offer both products and services to provide customers with optimal solution to meet
growing demand for fuel economy and tightening fuel/emission
regulations •
Customers include automotive OEMs, military and governmental agencies, aerospace,
and other strategic alliance partners
6
Electric
Drive
&
Fuel
Systems
-
Overview
•
Plug-in hybrid electric vehicles (PHEV)
•
Hybrid electric vehicles (HEV)
•
Electric vehicles (EV)
•
Fuel cell electric vehicles (FCEV)
•
Alternative fuels
•
Electronics vehicle control systems and software
Natural Gas
Hydrogen
Q-Drive
-
Fisker
F-Drive
-
F150
Q-Force
-
Military |
 Primarily OEM for use by consumers and commercial/government fleets
Since 1997, have sold approximately 20,000 alternative fuel systems to GM
Strong customer list
7
Electric
Drive
&
Fuel
Systems
–
Customers |
 Plug-in series hybrid drive system
•
Design features:
–
Improve vehicle fuel economy and performance
–
Leverage existing gas refueling infrastructure
–
Utilize home-based battery charging
•
Integrated into Fisker Automotive’s Karma
–
Long term exclusive supply agreement with Fisker
–
PO for 4,000 units to be delivered in 2011 at approximately $4K per unit
–
Recently shipped first two production cars in October 2011
•
We believe there is significant commercial opportunity for the Q-Drive
–
Fisker demonstrates technical feasibility and fuel economy advantages
–
Strong, ongoing collaborative relationship with Fisker
–
Anticipate shipping 12,000 Q-Drive units in 2012
–
Quantum –
Co-Founder Fisker Automotive
•
8
Electric
Drive
&
Fuel
Systems
–
Q-Drive
The plug-in hybrid control systems software developed by Quantum contains millions of
lines of code and embedded models.
|
 Key parts in the Q-Drive system for the Fisker Karma include the following
parts: Hybrid controller and controller software
On board charger
DC-DC converter
Solar roofs
Quantum owns ~1% of Fisker’s shares. Fisker may file for an IPO in the near
future, boosting overall value for Quantum shareholders.
Fisker Automotive
Next Generation Plug-In Hybrid Vehicles (PHEV)
Packaged systems are
priced by volume
ranging from:
$3,200 -
$4,100
Electric
Drive
&
Fuel
Systems
–
Fisker
Automotive
9
Fisker is led by Henrik Fisker, designer for Aston Martin and BMW
|
 US
Postal Service Battery Electric Program
Prototype vehicle delivered in October 2010.
Differentiating design includes an optional solar
roof. A solar roof adds the vehicle to grid
opportunity as USPS vehicles are parked in a
single location for ~16 hours/day.
Addressable Market: 142,000 USPS vehicles –
Quantity of vehicles to be converted and gross
margins are unknown
Significant potential; Still need to win the
business. Quantum has “foot in the door”
Prior Experience
USPS selected Quantum to participate in a
feasibility study on its postal service vehicle
US Army Program
Aggressor
Quantum designed, developed, and shipped
diesel electric hybrid vehicles to the U.S Army
Developed the CERV (Clandestine Extended
Range Vehicle), a hybrid electric vehicle
incorporates the Q-Force technology, designed
for reconnaissance.
The CERV was show cased at the All American
Bowl, one of the ARMY’s biggest recruiting
event.
Significant potential; Still need to win the
business. Quantum has “foot in the door”
Electronic Drive & Fuel Systems: Agreements/Relationships
10 |
 •
“2
nd
Generation”
version of our PHEV drive system
•
Directed
at
lower
cost,
light
duty
fleet/commercial
&
government
vehicles
•
Specifically designed for a PHEV of the Ford F-150 pickup truck
–
One of the highest volume selling fleet vehicles in America
–
Over 500,000 F-150s are sold each year
•
Pipeline
–
Florida Light & Power--$9MM contract
•
Delivery of 200+ vehicles over 2012-2014 time period
•
Attractive gross margins
–
Dow Chemical--$5MM contract
•
Delivery of 100+ vehicles over 2012-2013 time period
•
Attractive gross margins
–
Company anticipates orders for 650+ vehicles in next 2 years
11
Electric
Drive
&
Fuel
Systems
–
F-Drive |
 World leader in ultra-light weight carbon composite Natural Gas storage
systems Key competitive advantages
Light-weight (70% lighter than steel cylinders; save on installation/operation
costs) High capacity (30% more than aluminum tanks; efficient, large
diameter tanks) Experience (collaboration with the DOE/Boeing, 20,000
systems delivered since 1997) Market Opportunity:
End user OEMs: Freightliner, Kenworth, Peterbilt and Navistar
End user Fleets: Coca-Cola, Pepsi, Walmart, Waste Management, Chesapeake
Energy High precision gaseous fuel injectors being produced in India through
JV Electric Drive & Fuel Systems –
NGV Fuel Systems
12
According to Frost & Sullivan, 8% of Class 6-8 vehicles will run on natural gas by 2017 According to GM, 20% of all vehicles could be NGVs by
2030 |
 World
leader
in
hydrogen
and
CNG
systems
with
proven
contract
wins
Electric Drive & Fuel Systems –
Recent Contract Awards
13
Potential Revenue
Customer
Program
$19 MM
Fisker Automotive
Production Program for PHEV Karma Series
$5 MM
Fisker Automotive
Engineering Development
$19 MM
Major Global OEM
Production Program –
notice of award received; contract pending
$10 MM
General Motors
Advanced Ultra-Lightweight Hydrogen Storage Systems
$ Confidential
Daimler/Mercedes
Advanced Ultra-Lightweight Hydrogen Storage Systems
$ Confidential
Honda Motors
Advanced Ultra-Lightweight Hydrogen Storage Systems
$2.2 MM
Agility
Advanced Ultra-Lightweight CNG Storage Systems
$1.0 MM
DOE
Advanced Ultra-Lightweight Hydrogen Storage R&D
$0.9 MM
Semi Services
Advanced Ultra-Lightweight CNG Storage Systems
$0.75 MM
CNG Interstate
Advanced Ultra-Lightweight CNG Storage Systems
$1.4 MM Grant
California Energy
Commission
Development of next generation plug-in hybrid system
|
 Contract to develop natural gas vehicle for major global
OEM
OEM quality –
rigorously tested for safety and durability
Major government, commercial and private fleet potential
CleanTech Automotive: Natural Gas Vehicles
Development Programs
CNG
Program
-
$19MM
Contract
GM
Fuel
Cell
Vehicle
-
$10MM
Contract
Contract to develop next generation hydrogen system for
GM
GM’s Equinox with Quantum’s hydrogen systems have
completed 1+ million miles of real world driving
Contract to develop advanced hydrogen systems
Contract for hydrogen storage evaluation
Contract with Daimler
Contract with Honda
14 |
 •
Limited number of other players in the market with comparable level of
experience and expertise
•
Over 20 years in the industry
•
Significant barriers to entry for competitors
–
Existing industry relationships
–
Patented and proprietary proven technology platforms
–
Established team of professionals with industry-specific knowledge and strong
Tier-1 experience
•
Continuous improvement process keeps company at leading edge of industry
15
Electric Drive & Fuel Systems –
Competitive Advantage |
 •
Asola
is a leading provider of silicon-based photovoltaic (PV) modules
•
45 MW manufacturing facility in Germany
•
Ownership
–
Quantum owns 25% of Asola
–
Asola owns 15% of Quantum Asola USA
•
Building integrated modules, standard solar modules for residential
and commercial buildings, automotive solar modules
•
Proven technology with 20+ year history of reliability
•
Winner of 2009 Frost & Sullivan “World Advanced Mobile Solar
Technology Growth Leadership Award”
•
Solar PV market expected to reach 30 GW worldwide by 2015
(representing only 1% of global energy capacity)
16
Renewable
Energy
Segment
-
Asola |
 World's largest continuous-formed glass solar roof panel on a
car, for Fisker Karma
Integral part of the e-mobility on-board energy management
strategy
Optimized to maximize solar ray absorption under varying
lighting conditions
Renewable
Energy
Segment
–
Solar
Innovation
17 |
 •
Schneider Power -
wholly-owned subsidiary
•
Acquired in 2010 for $22 million in form of stock
•
Develops, builds and operates electricity generation facilities
–
Current: Wind Farms
–
Anticipated: Solar Farms
–
Ontario, Canada –
own and operate 1.6 MW wind turbine
project
–
20 year long term purchase power agreement with
Canadian-based renewable energy reseller
•
Pipeline of over 1 gigawatt (1,000 megawatts) of wind and solar
projects in various stages of development throughout North
America and Caribbean
•
Highly attractive IRR model (25%)
18
Renewable Energy Segment –
Schneider Power |
 *
Estimated Commercial Operation Date, subject to change
Capex,
subject
to
change
&
availability
of
capital
***Estimated Annual Revenue Generation based on $320,000 per mega-watt, subject
to change ****Quantum anticipates having a carried interest of 10% to 20% in
these projects, unless it contributes equity which would equate to a
significantly higher ownership. Wind and Solar Projects
19
Renewable Energy Segment Opportunity –
Schneider Power****
Canada
Type
Size
(MW)
C.O.D.*
Capex**
(MM)
Revenue
(MM)***
Trout Creek
Wind
10
2012
$ 25
$ 3.20
Teviotdale
Wind
10
2013
$ 25
$ 3.20
Hilltop Hts.
Wind
120
2014
$ 250
$ 38.39
Rapid City
Wind
240
2014
$ 480
$ 76.79
Fairmont
Wind
345
2015
$ 690
$ 110.38
Goodwins Is.
Wind
20
2015
$ 50
$ 6.40
USA
Type
Size
(MW)
C.O.D.*
Capex**
(MM)
Revenue
(MM)***
Quantum Solar 1
Solar
8
2013
$ 24
$ 1.68
Quantum Solar 2
Solar
100
2014
$ 250
$ 21.00
Silver Valley 1
Solar
20
2014
$ 60
$ 4.20
Silver Valley 2
Solar
20
2014
$ 60
$ 4.20
Caribbean
Type
Size
(MW)
C.O.D.*
Capex**
(MM)
Revenue
(MM)***
Tarpum Bay
Wind
1
2012
$ 3
$ 0.32
Gov’s Harbour
Wind
1
2012
$ 3
$ 0.32
Puerto Plata I
Wind
50
2013
$ 75
$ 16.00
Puerto Plata II
Wind
50
2014
$ 75
$ 16.00
N. Providence
Wind
10
2015
$ 25
$ 3.20
Abaco
Wind
10
2015
$ 25
$ 3.20
Eleuthera
Wind
4
2015
$ 10
$ 1.28
TOTAL
1039
$ 2,130
$ 310.20
Wind and Solar Projects
**Estimated |
 •
Key Patents in Core Competencies
–
Natural gas and hydrogen storage / metering
–
Hybrid electric propulsion technologies
•
Proprietary Manufacturing Methodologies
–
Advanced polymeric liners for natural gas and hydrogen
–
High-precision carbon fiber construction
•
Intellectual Capital
–
World-leading experts in ultra-lightweight carbon composite natural gas
and hydrogen storage systems; material/design/process knowhow
–
Extensive and exclusive experience in advanced vehicle control software for
hybrids, plug-in hybrids and calibration/emission control
–
Extensive
Tier
1
experience
in
all
aspects
of
vehicle
design
–
mechanical
integration, validation, certification
–
Effective
combination
of
Ph.D.
scientists,
experienced
engineers
and
technicians.
•
Core IP resides with the company; customers pay for and receive rights for
application-specific products and software
20
Intellectual Property
U.S. & Foreign Patents
•
21 Issued
•
25 Pending |
 Dale
L. Rasmussen, Chairman of the Board •
Member of the Board of Directors since 2000; Chairman since
2002
•
Over 25 years of experience in the alternative fuels industry, SVP of $200 million
alternative energy equipment company •
Former Chairman of the Board 2007-2010, Fisker Automotive
•
Instrumental in raising over half a billion in equity financing since 1996
Alan P. Niedzwiecki, President & CEO
•
President and CEO since Aug 2002
•
“Entrepreneur
of
the
Year”
–
Orange
County
Business
Journal
(March
2009)
•
Over 25 years of experience in the alternative fuels industry
•
Co-inventor
of
key
Quantum
Technologies
–
Ultra
light
weight
carbon
composite
energy
storage
tank
technology
•
Co-Founder Fisker Automotive and Founding Director 2007 through 2010
•
H2
Vision
and
Roadmap
through
2020
–
United
States
Government
•
CalSTART Board Member
W. Brian Olson, Chief Financial Officer
•
CFO and Treasurer since August 2002
•
Over 15 years of experience in the alternative fuels industry
•
Prior
experience
–
CFO
of
$200
Million
alternative
energy
equipment
company
•
Certified Management Accountant
Dr. Neel Sirosh, Chief Technology Officer
•
CTO since 2005; Director of Advanced Technology since 1997
•
20 years of experience in the alternative fuels industry
•
7 patents, Co-author of 2 books on clean energy; 35 papers/conference
presentations David Mazaika, Chief Operating Officer
•
Over 14 years of experience in hybrid vehicle development
•
Co-founder
of
the
ISE
Corporation
and
recipient
of
CALSTART’s
“Blue
Sky
Award”
(1997)
•
COO since December 2008
Volker Amelung, Managing Director Business Development
•
Former President & CEO of EDAG North America
•
24 years of experience in the automotive industry
•
Strong Expertise with Global Automotive OEM’s
Paul Rivera, Managing Director, Strategic Development
•
Former COO of TWS Worldwide/American AutoHaus, Germany
•
20 years of experience in the automotive and aerospace industries
•
Strong Relationships with Global Automotive OEM’s
Experienced Management Team
21 |
 Financial Overview
22 |
 Financial
Overview
–
Income
Statement
Financial Highlights
•
Product Sales revenue has
increased 213% YoY and
399% QoQ
•
Contract revenue has
increased 93% YoY and
21% QoQ
•
Total revenue has
increased 111% YoY and
90% QoQ
23
$ in thousands
First Fiscal Quarter Ending 7/31/
Fiscal Year Ending 4/30/
2011
2010
2011
2010
Revenue:
Net Product Sales
$3,213
$644
$4,544
$1,450
Contract Revenue
3,541
2,916
15,730
8,155
Total Revenue
$6,754
$3,560
$20,274
$9,605
Cost & Expenses:
Cost of Product
$2,011
$559
$3,693
$1,573
Research & Development
3,496
3,837
18,098
13,534
Selling, General, and Administrative
5,470
3,789
14,871
14,133
Gain On Sale of Assets
-
-
Amortization and Impairment
1,070
-
1,426
869
Total Operating Expenses
$12,047
$8,185
$38,088
$30,110
Income/(Loss) From Operations
($5,292)
($4,625)
($17,813)
($20,505)
Interest Expense
647
459
3,368
2,415
Other Income/Expenses (net)
(1,922)
3,483
9,910
(23,368)
EBT
($7,861)
($1,601)
($11,271)
($46,288)
Income Tax Benefit/(Provision)
(4)
(13)
241
(6)
Net Income/Loss
($7,865)
($1,615)
($11,030)
($46,294) |
 Financial
Overview
–
Financial
Milestones
CY2012
-
CY2015
Fisker Revenue
CY2012 -
Reach ~$50M in Revenue with 12,000 Fisker Q-
Drive
Units
6-Year Production Program under Contractual Exclusive
Supply Agreement
F-150 Program
$14 million received in initial production orders
Initial deliveries in Early 2012
GM/Mercedes/Other OEM
Revenue
Funded Development Revenues
Production
Intent
Programs
-
Starting
in
CY2014
CNG Programs
Growing Commercial Opportunities
CY2012 –
Expected $5 million in revenue
24 |
 Financial
Overview
–
Use
of
Proceeds
and
Pro
Forma
Capitalization
25
($ in Millions)
Assumptions
Capital raise, net of fees
$15.0
Repayment of Whitebox convertible notes
(10.2)
Repayment of 10% convertible notes
(3.8)
Fisker working capital requirements
(1.0)
Pro Forma Capitalization
Proposed
Pro Forma
7/31/11
Transaction
Adjusted
Cash
$4.5
$1.0
$5.5
Debt
18.3
(14.0)
4.3
Equity
Common stock
0.3
0.2
0.5
Additional paid in capital
433.0
14.8
447.8
Accumulated deficit
(390.7)
-
(390.7)
Net capitalization
$60.9
$1.0
$61.9 |
 •
Improving financial metrics
–
Strong revenue growth
•
Fisker Karma PHEV in production
–
Delivered first two production vehicles in October 2011
–
Quantum has shipped
3,000 Q-Drives CYTD
–
Anticipated revenues: $50MM in FY2012
•
$80 million in key new contract awards during 2011, including:
–
$24MM in Fisker contracts
–
$14MM in new F-Drive contracts (Florida Light & Power, Dow Chemical)
–
$16MM in new H2 tank system contracts; GM, Daimler, Honda & others
•
Pipeline
of
over
1
gigawatt
of
wind
and
solar
projects
–
Schneider
Power
–
Located throughout North America and Caribbean
–
Highly attractive target IRR model (25%)
•
Strong intellectual property portfolio
–
21 issued U.S. and foreign patents
–
25 pending U.S. and foreign patents
–
Proprietary Processes/Know How
–
Q Drive™
•
Experienced management team
–
Over 100 combined years of experience in the business
26
Key Investment Considerations |
 Q
& A 27
Solar PV
Wind Energy
Engine Conversion Services
Fisker Karma |