A Leader in Energy Security, Authentication, Verification and Certification Technologies. September 2015

Transcription

1 A Leader in Energy Security, Authentication, Verification and Certification Technologies September 2015

2 Disclaimer This presentation contains forward-looking statements under applicable securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Eurocontrol Technics Group Inc. ( Eurocontrol ) future revenue and revenue potential; competitive advantages; the performance and reliability of Eurocontrol's products; future operations, prospects and timetable; and protection of its intellectual property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of future contracts and revenue are based on management experience and research and analysis regarding the oil industry and government contracts. Capital and operating cost estimates are based on extensive research of Eurocontrol, and past operations to date. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Eurocontrol to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks described in Eurocontrol s public disclosure. Although management of Eurocontrol has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Eurocontrol does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

3 Eurocontrol Highlights Eurocontrol Technics Group Inc. (EUO) is well positioned to increase its market share of the energy security sector o Energy security sector is expected to grow to US$100 billion in the next five to ten years (Source: World Energy Outlook 2008) o Petromark TM technology acts as deterrent for smuggling, tax evasion, adulteration and commingling of fuels LOI with SICPA to sell GFI provides for $16 million cash payment and $9 million in guaranteed royalties increases Eurocontrol s revenue exposure with addition of royalties on logistics as well as marker sales EUO has government contracts in three countries: Albania, Tanzania and Uganda Xenemetrix awarded 2 nd Frost & Sullivan Award for 2015 Global Analytical X-ray Instrumentation Price Performance Value Leadership Award Xenemetrix introduces PetroMarine, a new monitoring technology for the marine industry - potential market of $1.6 billion XwinSys to bring a new and truly unique approach to handling review stations for the semiconductor industry

4 Corporate Overview Fuel Marking Technology Petromark System: 4-part proprietary black oil marking system Targets fuel that has been adulterated with (i.e. diluted with lower grade fuel, propane, water, urine, etc.), found primarily in developing nations Minimizes tax revenue lost for government and detection agencies Fuel Marking Detector Xenemetrix is a leading designer, manufacturer and marketer of Energy-Dispersive X-ray Fluorescence (EDXRF) systems and components for a wide range of industries and applications Semiconductor Industry Developing intellectual property that will combine 2D and 3D image processing technology with XRF systems for material analysis

5 Eurocontrol Milestones Eurocontrol Enters into LOI with SICPA for Sale of Subsidiary Global Fluids International S.A. - $16 million cash on closing and $9 million minimum cash royalty over six years - Eurocontrol Receives Seventh Process Patent European Patent Office Grants Patent Eurocontrol Appoints Dennis Logan to the Board of Directors Xenemetrix Awarded Frost & Sullivan Award Global Analytical X-ray Instrumentation Price Performance Value Leadership Award Eurocontrol Files First Quarter 2015 Financials - Record Quarterly Revenue and Net Income Xenemetrix Launches X-Ray Fluorescence Spectroscopy Field Database - State of the Art Web-Based Solution Eurocontrol s LOI to Acquire Austin AI Expires Petromark TM Assisting Albania to Clean Up Fuel Market Adulteration Gas Stations Caught with Adulterated Fuel - XwinSys Receives $300,000 Grant Office of the Chief Scientist Continues Support of Wafer Bumps Inspection and Measurement System Eurocontrol Files Third Quarter 2014 Financials Continued improvement in Balance Sheet, Operations and Net Loss Eurocontrol Enters into LOI to Acquire Austin AI - Market expansion for Eurocontrol sub Xenemetrix New Business Collaboration with Tel Aviv University Enters into Nano Imprinting Security and Authentication Technology Petromark TM Increasing Tax Revenues in Albania Tax Revenue for September 2014 Increased by ~$11 Million Eurocontrol Acknowledged in Business Week East Africa Tanzania Increases Tax Revenue by ~$300 Million Research Agreement with Ramot at Tel Aviv University Investigating development of a new unique fuel marking technology Eurocontrol Files Second Quarter 2014 Financials Continued Improvement in Balance Sheet, Operations and Net Loss XwinSys Advancements - Significant Progress in Bumps Inspection System for Semiconductor Manufacturing Eurocontrol Ranked No. 337 on the 2014 PROFIT 500 Eurocontrol Files 2013 Financials and Reports 29% Increase in Revenue

6 Why Petromark TM Criminal organizations steal fuel to fund illegal activities o Fiscal misuse of fuel based on tax status o Physical adulteration of fuels o Theft of crude oil in transit in pipelines and on ships Petromark Technical Advantages Sole ISO accredited technology available Detection protocol is mobile - final results in the field Petromark can determine the degree of dilution

7 Petromark : The 4-Part System Petromark System 4-part proprietary system comprises marker, injection, detection, monitoring (mobile detection ISO 17025) The only black oil (crude and fuel oil) marking system in the world Cannot be erased, altered or imitated 4 Monitoring, control and reporting to authorities 3 Mobile Detection Station: Quick Results Onsite 1 Marker is chosen 2 Injection at terminal or pipeline

8 Petromark Detection Station (ISO 17025) Detection station provides fast on-site results without the need of an external laboratory Unmarked fuel is clearly identified as illegal or of unknown origin Detector provides accurate (±5%) and reliable (99.5% - 3 Sigma) results and are obtained in five minutes in the field Provides both quantitative and qualitative readings of the concentration level of the marker in the fuel

9 Petromark In the Field 1 MOBILITY Onsite, simple testing and detection 2 + Discreet process as not to alert violators 3 + Rapid testing time: no interruption of schedules or offsite analysis 4 INVISIBILITY QUICKLY + SECURITY Numerous molecular combinations= certainty $ Reduced Losses $

10 Xenemetrix Ltd. Eurocontrol acquired Xenemetrix Ltd. in October 2010 Xenemetrix is a leading designer, manufacturer and marketer of Energy- Dispersive X-ray Fluorescence (EDXRF) systems and components for a wide range of industries and applications including: o o o o o forensics in-situ fraud prevention Petrochemicals minerals and mining homeland security Awarded two Frost & Sullivan awards the 2010 Global Product Line Strategy of the Year Award and the 2015 Global Analytical X-ray Instrumentation Price Performance Value Leadership Award

11 SICPA Letter of Intent Non-binding letter of intent with SICPA entered August 18 th provides for: Non-refundable deposit of $250,000 $16 million payment on closing 5% royalty payment on future GFI contracts, inclusive of both marker and logistics with minimum guarantee of $9 million over six years SICPA has a long established business with significant world wide reach in the security and authentication marketplace Enhanced exposure to the fuel marking market will provide royalties not only on the sale of the fuel marking technology but also on the implementation and operation of these programs on behalf of customers Provides GFI with the ability to leverage the substantial reach and customer base of SICPA to deliver more contracts, more quickly An increase in GFI s fuel marking business will result in more business for Xenemetrix s analyzer product line

12 XwinSys Technology Development Ltd. Eurocontrol acquired XwinSys Technology Development Ltd. in May 2012 XwinSys is a start-up company with a goal to be leading designer, manufacturer and marketer of EDXRF combined with image processing technology (computers that see) for application in the semiconductor industry XwinSys is currently developing technology and intellectual property that will combine 2D and 3D image processing technology, from Brossh Inspection Systems Ltd. of Israel, with Xenemetrix EDXRF technology - 2D and 3D imaging will be used for surface scanning of wafers and electronic boards used in semiconductors, while the EDXRF technology will be used for elemental analysis of the materials that comprise the wafers and electronic boards

13 Ramot at Tel Aviv University Eurocontrol is collaborating with Ramot at Tel Aviv University for the rights to two new technologies: Nano Imprinting a new US patented technology focused on Nano imprinting security and authentication developed by Professor Jacob (Koby) Scheuer, from the School of Electrical Engineering Nano imprinting s unique capability for creating Nano tags for products by regular and 3D printing the technology combines the unprecedented resolution of state-of-the-art lithography methods with the inexpensive mass production capabilities of Nano-imprinting, to yield a highly secure yet low-cost authentication tagging solution Fuel Authentication Technology novel approach to fuel marking Eurocontrol has a first right of opportunity for the licencing and commercialization of the technology Renowned chemist Professor Fernando Patolsky is leading the GFI sponsored research project

14 Ramot at Tel Aviv University Ramot is the technology transfer company of Tel Aviv University Ramot s mandate is to foster, initiate, lead and manage the transfer of new technologies from University laboratories to the marketplace by performing all activities relating to the protection and commercialization of inventions and discoveries made by faculty, students and other researchers Ramot provides a dynamic interface that connects industry to leading-edge science and innovation, offering new business opportunities in a broad range of emerging markets Interview of Shlomo Nimrodi, CEO of Ramot by Bloomberg TV -

15 Experienced Management W. Bruce Rowlands Chairman and Chief Executive Officer Mr. Rowlands has 25 years sales, operations, capital markets and senior management experience with emerging market companies. Prior to forming Eurocontrol, Mr. Rowlands worked in the biotechnology and investment banking industries as Senior Vice President with Lorus Therapeutics, a leading Canadian biotechnology company and Vice President and Director of Dominick and Dominick Securities Canada, a Canadian investment banking firm. Gadi Gonen Chief Operating Officer and Director Mr. Gonen has 20 years experience in establishing and managing companies, raising private and public equity and transitioning companies from R&D phase to profitable companies. Andres Tinajero Chief Financial Officer Mr. Tinajero has over 15 years of business experience supporting a broad range of industries including mining, not for profit, manufacturing and retail. He has worked for the International Monetary Fund / State Bank as a Risk Manager and the United Nations World Food Program as Financial Director. He has also served as Vice President of Finance and CFO of a number of early stage and medium sized Canadian public companies. Mr. Tinajero holds a degree in Business Administration and an MBA and he is a member of the Canadian Institute of Certified Management Accountants, the Certified Practicing Accountants Association of Australia and he is a certified member of the Institute of Corporate Directors.

16 Board of Directors W. Bruce Rowlands Chairman and Chief Executive Officer Gadi Gonen Chief Operating Officer and Director General (Retired) Sir Michael Rose - General (Ret.) Sir Michael Rose commanded the United Kingdom s Special Air Service ("SAS") and commanded the UN Protection Force in Bosnia. He retired from the Army in September Since leaving the Army, he has written and lectured extensively on peacekeeping and leadership to a wide variety of audiences around the world. Dr. Eli Zahavi - Dr. Zahavi has over 30 years of experience in the international oil industry. Over the course of his career, Dr. Zahavi served in various positions and gained valuable experience in managing and running oil companies in the continental US, Puerto Rico and Israel as well as in crude oil and petroleum products trade. Dr. Zahavi holds a Ph.D. in aeronautical engineering as well as a M.Sc. and a B.Sc. in chemical engineering from the Israel Institute of Technology, Israel. He is also a graduate of Cornell University's International Executive Managers Program. Dennis Logan - Dennis Logan is a Director and the Chief Financing Officer for Almonty Industries Inc., a TSX Venture Exchange listed company that is involved in the production of Tungsten. Prior to joining Almonty in 2011, Dennis Logan spent 13 years in the investment banking community where he held a number of senior management positions including Managing Director, Investment Banking at Desjardins Securities Inc. from 2007 to 2011 and Director, Investment Banking at Westwind Partners Inc. and Partner at Loewen Ondaatje McCutcheon Limited. He received both his BA (1991) and his MBA (1994) from the University of Toronto. He is a Chartered Accountant and a Member of the Institute of Chartered Accountants of Ontario.

17 Board of Directors Kenneth Wawrew - Kenneth Wawrew has over 40 years experience in the high technology industry. He has been instrumental in the start up and success of a number of software and automated optical inspection technology companies. Mr. Wawrew was CEO of Image Processing Systems Inc. (IPS), a TSX listed company that developed E-vision technology for advanced manufacturing applications. IPS was named the fastest growing company in Canada, was one of the Deloitte & Touche Fast 50 for three consecutive years and was also a winner of the Export Award of Canada. IPS was acquired by Photon Dynamics Inc., a Silicon Valley company listed on the Nasdaq exchange. Mr. Wawrew serves on the board of Photon Dynamics as well as holding the position of Corporate Vice President of Business Development. Mr. Wawrew holds a Bachelor of Mathematics and Computer Science from the University of Waterloo. Paul Wood - Paul Wood has 25 years business experience focused on corporate development and structuring transactions. He founded Kappa Advisors Ltd., an independent investment and consulting services company in corporate development, commercialization, intellectual property licensing, special situations and restructuring. In his consulting capacity, he has supported clients around the world, most recently in Asia and Africa, as well as on behalf of OMERS, a $55+ billion pension fund. Prior to the formation of Kappa Advisors, Mr. Wood was Director of Corporate Development for Celestica Inc., a global electronics manufacturing services company, where he led M&A and restructuring teams. He has also worked in corporate development for Spar Aerospace and as Vice President for Ernst & Young Corporate Finance. Mr. Wood obtained his MBA in Finance from the University of Toronto and a BA in Economics, Philosophy and Politics from Dalhousie University.

18 Stock Information Stock Symbol: EUO (TSXV) Share Price: (as of August 31, 2015) $ Week H/L: $0.18 / $0.05 Average daily volume: 870,455 Shares issued: 89,160,738 Shares fully diluted: 96,198, Revenue: (recurring revenue model) Market cap: ~$13.4 million Institutional ownership: 25% ~$6.0 million

19 Contact Information: W. Bruce Rowlands Chairman and Chief Executive Officer +1 (416) Eurocontrol Technics Group Inc. 401 Bay Street, Suite 2828 Toronto, CANADA M5H 2Y4