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Unlocking the Power of
Energy Savings
TSX-V: TMG | Corporate Presentation | October 2016
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This presentation includes “forward-looking information”. For example, statementsabout the opportunities for repeat business, additional orders, entry into new marketsand growth of recurring revenue streams; order backlog; introduction of new productsand services and growth opportunities and strategies are all forward lookinginformation. Such forward looking information reflects Thermal Energy International’s(“TEI”) current expectations with respect to future events and are based oninformation currently available to management. Forward-looking information involvessignificant known and unknown risks, uncertainties and assumptions. Should one ormore of these risks or uncertainties materialize, or should assumptions underlying theforward-looking information prove incorrect, actual results, performance orachievements could vary materially from those expressed or implied by the forward-looking information contained in this presentation.
Readers should not place undue reliance on forward-looking information. Theforward-looking information is made as of the date of this presentation and TEI doesnot assume any obligation to update or revise it to reflect new events orcircumstances, except as required by law.
Forward-Looking Statements
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Thermal Energy is a…
Global provider of energy efficiency solutions to the ICI sectors
We save our customers money & improve their bottom lines by…
Reducing their fuel use and cutting emissions
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Highlights
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Enormous, fast-growing global market
with strong fundamentals
Proprietary products sold to leading
companies in many sectors
Poised to continue strong track record of
growth
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Governments and industries
around the world taking
unprecedented action on
climate change
Increasing energy efficiency is the cheapest
& easiest way to reduce GHG emissions
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Market Opportunity
1 2015 International Energy Agency. 32% of the $68 trillion world energy sector investment.2 P&S Market Research Report on Global Waste Heat Recovery Market
$21.8 trillion
Expected investment in end-use energy
efficiency from 2015 to 20401
20% to 50%
Amount of industrial energy
consumption lost as waste heat2
6.8% CAGR
Projected for the global waste heat
recovery market from 2016 to 20222
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Proprietary, Proven Solutions
FLU-ACE®
Direct contact condensing heat recovery
GEM™Condensate return systems (steam trap)
~80%We can recover of energy lost in typical boiler plant and steam system operations
High ROI with short, compelling payback
17 year track record
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FLU-ACE® Heat Recovery
Recovers waste heat from process exhaust
Returns hot water for use in production or heating
1 system per location –sells for $100k to millions each
90% 10-30% 2-5YRSRecovery
RateReduction in Energy Costs
Payback Period
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GEM™ Condensate Return System
Improved efficiency vs. traditional mechanical traps
No moving parts – never needs replacing
100’s to 1,000’s of traps per location and sell for $500 to $2,000 per trap
10-30% 1-2YRS
Reduction in Energy Costs
Payback Period
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GEM steam trap
Mechanical trap
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Customers include F500 &
other leading companies
across many sectors
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$0.82
$4.93$3.96
$5.81
$9.70
$13.15
$8.21
$13.15
$6.80
$12.40
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenue excl. mega projects
Revenue from mega projects (>$2 million)
($ millions)
10-Year Revenue
(1)
(1)
(1)
(2)
**Boxes above bars indicate number of "Mega" projects acquired in that year
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FY 2016 Highlights
FY 2015 FY 2016
Revenue
FY 2015 FY 2016
Gross Profit EBITDAS
EBITDAS is defined as earnings before interest, taxation, depreciation, amortization, impairment of goodwill and other intangible assets, share-based compensation expense and net write down of lease.
($ millions)
6.8 3.6
(2.0)
12.4 6.8 0.6
FY 2015 FY 2016
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Historical Q1 Revenue
0
0.5
1
1.5
2
2.5
3
Q1 13 Q1 14 Q1 15 Q1 16 Q1 17
($ millions)
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EBITDAS
Q1 2017 Highlights
EBITDAS is defined as earnings before interest, taxation, depreciation, amortization, impairment of goodwill and other intangible assets, share-based compensation expense and net write down of lease.
($ millions)
Q1 2016 Q1 2017Q1 2016 Q1 2017
Revenue
Q1 2016 Q1 2017
Gross Profit
2.6
1.1 (0.4)2.1
1.5
0.0
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Growing Order Backlog
Recent orders included in order backlog:
$1,700,000 heat recovery order from ethanol producer
$500,000 GEM order from a new hospital customer
$750,000 heat recovery order from a global brewing company
$1,148,000 heat recovery + GEM order from a hospital trust
$840,000 heat recovery extension from a multi-site hospital group
$1,015,000 heat recovery order from leading food products business
~$7.8 millionOct. 18, 2016
$3.7 million a year ago
Order backlog
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Listing TSX-V: TMG
Recent price $0.16
52-week range $0.03 to $0.23
# of shares 157.8 million
Market cap $25.3 million
Cash position $0.8 million
Debt Nil
Trading data as at October 19, 2016. Balance sheet data as at August 31, 2016. 16
Stock Overview
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Footholds established but significant growth potential remains in key markets (North America & Europe) and secondary markets
Growing Global Presence
17Corporate / sales office Agent / distributor
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Future Growth
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Increase penetration in key and secondary markets
Enter new markets
Cross-selling
Corporate accounts
Sector-based initiatives
Introduce new products & services
Grow organically and/or through
accretive acquisitions
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Summary
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Enormous, fast-growing market with strong fundamentals
Proprietary products sold to leading companies in many sectors
Poised to continue strong track record of growth
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