SAVE FUEL ON A TRUCK USING HYDROGEN TECHNOLOGY

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Transcript of SAVE FUEL ON A TRUCK USING HYDROGEN TECHNOLOGY

Page 1: SAVE FUEL ON A TRUCK USING HYDROGEN TECHNOLOGY

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TSX:V DYA

www.dynaCERT.com

June 2015

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This Presentation/Document is based upon information supplied by the management of dynaCERT Inc. ("dynaCERT" or the "Company") and is being furnished on a strictly confidential basis, solely for use by prospective investors.

Each recipient of this presentation/document agrees that all of the information contained herein is confidential and is not to be used for any purposes whatsoever except to assist the recipient in evaluating the Company. Each recipient agrees to keep the information contained herein in strict confidence and, neither directly nor indirectly, to reproduce or transmit in any form or by any means any of the information contained herein or to disclose such information to any person, firm, or corporation without the prior written consent of the Company.

dynaCERT Inc. expressly disclaims any and all liability for any representation or warranties, expressed or implied, contained in this presentation/document or for omissions from it. Only those particular representations and warranties that may be made in a definitive agreement respecting any proposed transaction, if and when executed, shall have legal effect.

This presentation/document contains forward-looking statements reflecting dynaCERT’s current forecast of certain aspects of the Company's future. It is based on current information that has been assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements may include, without limitation, statements regarding growth projections, including financial forecasts and the projected rollout of the Company's products.

dynaCERT’s actual results could differ materially from those stated or implied by the Company's forward-looking statements due to risks and uncertainties associated with its business, including, but not limited to:

• The requirement for significant financing to develop and market its technology;

• The ability to establish and maintain arrangements with industry recognized strategic partners;

• Market acceptance of the Company's technology and products;

• Competition in all aspects of its business;

• The effect of general economic, credit and capital market conditions on its business;

• The ability to complete product development milestones and progress towards commercialization of product within the contemplated timetable;

• The ability to attract and keep highly qualified staff and management; and

• Changes in product profit margins due to pricing changes driven by variations in customer demand, competition, or unforeseen factors.

The Company's forward-looking statements should be considered in the context of these and other risk factors.

All future written and oral forward-looking statements made by the Company on its behalf are also subject to these factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Securities laws vary between Canadian provinces and investors should seek independent legal advice regarding compliance with applicable securities laws in connection with any investment in the Company.

The securities of the Company are not registered under United States securities laws.

This presentation/document is not a prospectus or a public offering in any jurisdiction.

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A Cutting Edge Tech Company Positioned for

Dynamic Growth and a Solid ROI

The Benefits of our Technology s

Reduced Fuel Consumption Reduced Emissions Reduced Maintenance

Reduced Vehicle Downtime

Increased Engine Oil Life

Increased Torque

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Market Characteristics 178,978,822 shares on the market of which 70% are closely held Trades on the TSX:V (DYA)

Jim Payne Pres.& CEO Board of Directors

Yumey Fernandez CFO

Peter Ross Product Development

Michael Elwood Marketing, Sales, Brand Development

Board of Directors Wayne Hoffman, Dr. Elliot Strashin,

Robert Maier, Ron Perry, Dr. Richard Lu Engineering Team Robert K. Maier, MBA, P.Eng. Corbin Bruce, Mechanical

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Started as Dynamic Fuel Systems Inc.

JetStar unit produced HHO (Brown’s gas)

Small sales generated

2010 engine testing revealed separate gases provide unique characteristics

Developed Patent Pending system that separates hydrogen and oxygen

Field trials with Pepsi on Detroit Diesel Series 60 engine through 2012 produced POSITIVE RESULTS

REFOCUSED AND STRENGTHENED BUSINESS MODEL

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Rising Fuel Prices & GHG Emissions

Global Problem

Shipping & transportation sectors highly vulnerable

2010 Clinton Global Initiative - World Health Organization Commitment to reduce carbon emissions and pollution

Transportation sector consumes 40% of total energy[1,2]

Combustion engines represent over 40% of GHG Emissions[1,3]

CO2 Black Carbon

Particulate Matter Nitrous oxides

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HydraGen™ Enhances Combustion

Supplies engine with pure hydrogen and oxygen gases

Generates a faster and more complete combustion [4,7,8]

Increases fuel economy [4,7,8]

Reduces emissions [4,6-8]

Dramatic Fuel Improvements

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How it WORKS

9X flame speed vs diesel

Stable flame front

Removes emissions at the SOURCE

Complete combustion burns more diesel

Counteracts efficiency

reducing “solutions” - EGR, SCR, DPF

HydraGen™ lets DIESEL DO DIESEL

LEAN BURN = LESS FUEL

More oxygen ie. Turbocharger Supercharger

More high pressure steam

Improved cylinder

temperature regulation

[4-9]

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Increasing Fuel Economy

Lowering Emissions

HydraGen™ Our Technological Solution

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Reactor, plumbing and gasket materials upgraded

Weather tight housing with vibration dampeners

40% weight reduction

New level sensors

Unit easily maintained and serviced

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Brains of the HydraGen™

Electronically optimized gas injection

In-cab tablet display

Wi-Fi, GPS and remote access

Displays key operational parameters

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Heavy duty Detroit Diesel Series 12.7L

Pepsi Beverages Company HydraGen™

August 2011

CARB executive order (D-697)

granted May 2012

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Milestones

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Impact of HydraGen™ on Fuel Economy

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0 1 2 3 4 5

Fuel Econom

y (M

PG

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Week

HydraGen™

No HydraGen™

10-20%

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International Market Tighter configuration Less Room between cab and trailer

North American Market Lots of room for install Unit size can be larger

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Market Growth

Global Oil Consumption

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Current Market Focus

On-Road Class 6 – 8 engines Tractor-trailers and buses

Power Generation 6000hp – 30,000hp engines Widely used in remote locations Provides simple transition to Marine/Rail

Increase Profitable Market Share Accelerate Market Penetration in Two Primary Sectors

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Future Market Penetration

On-Road

Global market is large, dynamic and mature

Continue work with Large Trucking Fleets to further establish our technology

Develop distribution agreements in overseas markets

Establish testing opportunities with OEM for use with EGR systems

Agreements, and ongoing testing with Pepsi Co., Schneider, TTSI and Navistar

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Potential Market Penetration Power Generation

Consume tonnes of fuel (diesel – Heavy Fuel Oil) per day Significant emitters of GHG (CO2, Sulphur, Black Carbon, Nitrous Oxides) Increased environmental restrictions beginning to take effect

Applying Our technology

Fuel savings – potential to save millions of dollars per year per unit Significant reduction in GHG emissions Reduced maintenance downtime

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Annual Profit Projection

HydraGen™ lets DIESEL DO DIESEL 20

UNIT SALES - HYDRAGENS 1,000 3,000 5,000 10,000 15,000 20,000 40,000 60,000

Dealer Price 6,750 $ 6,750 $ 6,750 $ 6,750 $ 6,750 $ 6,750 $ 6,750 $ 6,750 $

Mfg. Cost 2,200 $ 2,200 $ 2,200 $ 2,200 $ 2,200 $ 2,200 $ 2,200 $ 2,200 $

Sales 6,750,000 $ 20,250,000 $ 33,750,000 $ 67,500,000 $ 101,250,000 $ 135,000,000 $ 270,000,000 $ 405,000,000 $

Cost of Sales:

Manufacturing 2,200,000 6,600,000 11,000,000 22,000,000 33,000,000 44,000,000 88,000,000 132,000,000

Selling Commission 506,250 1,518,750 2,531,250 5,062,500 7,593,750 10,125,000 20,250,000 30,375,000

Total Cost of Sales 2,706,250 8,118,750 13,531,250 27,062,500 40,593,750 54,125,000 108,250,000 162,375,000

Gross Profit 4,043,750 12,131,250 20,218,750 40,437,500 60,656,250 80,875,000 161,750,000 242,625,000

Total Expenses 2,575,000 2,845,000 3,115,000 3,790,000 4,465,000 5,140,000 7,840,000 10,540,000

Net Pretax Gain/( Loss) 1,468,750 9,286,250 17,103,750 36,647,500 56,191,250 75,735,000 153,910,000 232,085,000

Tax Provision - 25% 367,188 2,321,563 4,275,938 9,161,875 14,047,813 18,933,750 38,477,500 58,021,250

Net Profit 1,101,563 $ 6,964,688 $ 12,827,813 $ 27,485,625 $ 42,143,438 $ 56,801,250 $ 115,432,500 $ 174,063,750 $

Earning Per Share

178,978,822 O/S - 0.006 0.039 0.071 0.153 0.235 0.317 0.645 0.972

0.16 $ 1.07 $ 1.77 $ 3.84 $ 5.98 $ 7.93 $ 16.12 $ 24.31 $

TRUCKS ONLY

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Annual Profit Projection

HydraGen™ lets DIESEL DO DIESEL

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10 30 100 300 500 1,000 1,500 2,000

500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $

125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $

2013 2012

(ACTUAL) (ACTUAL)

Sales 20,644 $ 32,500 $ 5,000,000 $ 15,000,000 $ 50,000,000 $ 150,000,000 $ 250,000,000 $ 500,000,000 $ 750,000,000 $ 1,000,000,000 $

Cost of Sales:

Manufacturing 37,199 26,756 1,250,000 3,750,000 12,500,000 37,500,000 62,500,000 125,000,000 187,500,000 250,000,000

Selling Commission - - 375,000 1,125,000 3,750,000 11,250,000 18,750,000 37,500,000 56,250,000 75,000,000

Total Cost of Sales 37,199 26,756 1,625,000 4,875,000 16,250,000 48,750,000 81,250,000 162,500,000 243,750,000 325,000,000

Gross Profit (16,555) 5,744 3,375,000 10,125,000 33,750,000 101,250,000 168,750,000 337,500,000 506,250,000 675,000,000

Expenses:

Wages and consulting fees 1,031,642 838,190 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000

Professional fees 248,131 249,062 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Selling, general and administrative 225,436 200,668 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000

Research and Development 134,850 268,268 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Amortization 51,354 19,117 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000

Interest 191,723 207,658 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000

Foreign Exchange 78,911 (74,336) - - - - - - - -

ADMIN ADDITIONS-2% - - 100,000 300,000 1,000,000 3,000,000 5,000,000 10,000,000 15,000,000 20,000,000

Total Expenses 1,962,047 1,708,627 2,540,000 2,740,000 3,440,000 5,440,000 7,440,000 12,440,000 17,440,000 22,440,000

Net Pretax Gain/( Loss) (1,978,602) $ (1,702,883) $ 835,000 7,385,000 30,310,000 95,810,000 161,310,000 325,060,000 488,810,000 652,560,000

Tax Provision - 25% Tax Provision - 25% 208,750 1,846,250 7,577,500 23,952,500 40,327,500 81,265,000 122,202,500 163,140,000

Net Profit Net Profit 626,250 $ 5,538,750 $ 22,732,500 $ 71,857,500 $ 120,982,500 $ 243,795,000 $ 366,607,50000 $ 489,420,000 $

178,978,822 Shares O/S $0.003 $0.031 $0.13 $0.40 $0.68 $1.36 $2.05 $2.73

$0.09 $0.77 $3.18 $10.04 $16.90 $34.05 $51.21 $68.36

Mfg. Cost

Stock Price - 25x

Earning Per Share -

POWER GENERATORS (ONLY)

UNIT SALES - HYDRAGENS

Dealer Price

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dynaCERT creates winning situations through strategic global sales and marketing partnerships

dynaCERT’s partners maintain global relationships with large fleet operators, government agencies and utility providers

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Corporate Growth

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Road proven technology

We have the right team

Working with Fleets to:

Reduce Fuel Costs

Reduce Emissions

Reduce Maintenance Costs

Partnerships providing endless possibilities

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1 Kokjohn, S., Hanson, R., Splitter, D., & Reitz, P. (2010). 2010 Climate Leadership Challenge. InThe CORE concept for economic and environmental sustainability of mobile and stationary sources of power Generation. Wisconsin

2 US Energy Information Administration. How much energy is consumed in the world by each sector? (2014). Washington.

3 US Energy Information Administration. Emissions of GreenHouse Gases in U.S. (2011). Washington.

4 Masood, M., Ishrat, M., & Reddy, A. (2006). Computational combustion and emission analysis of hydrogen–diesel blends with experimental verification. International Journal of Hydrogen Energy, 32, 2539-2547. (2006, December 26). Retrieved September 13, 2014.

5 Aspden, A., Day, M., & Bell, J. (2011). Turbulence–flame interactions in lean premixed hydrogen: Transition to the distributed burning regime. Journal of Fluid Mechanics, 287-320. Retrieved September 17, 2014.

6 Lilik, G., Zhang, H., Herreros, J., Haworth, D., & Boehman, A. (2010). Hydrogen assisted diesel combustion. International Journal of Hydrogen Energy, 35, 4382-4398.

7 Bose, P., & Maji, D. (2009). An experimental investigation on engine performance and emissions of a single cylinder diesel engine using hydrogen as inducted fuel and diesel as injected fuel with exhaust gas recirculation. International Journal of Hydrogen Energy, 4847-4854. Retrieved September 12, 2014.

8 Premkartikkumar, S., Annamalai, K., & Pradeepkumar, A. (2011). USING HYDROGEN AS A FUEL IN AUTOMOTIVE ENGINES - AN INVESTIGATION. INTERNATIONAL JOURNAL OF INNOVATIVE TECHNOLOGY AND RESEARCH, 1(1).

9 Momin, G. (2014). Emission Control Using Hydrogen As An Additive With Diesel”. IOSR Journal of Engineering, 4(1), 26-31.

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