Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (June 2012)
21 slides from Hudson Technologies's investor presentation, June 2012
Slide 1: Refrigerants, Recycling & Energy Efficiency
Refrigerants, Recycling & Energy Efficiency June 2012
Slide 2: Forward-looking statements
Statements contained herein, which are not historical facts constitute forward-looking statements, involve a number of known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future r
Slide 3: Uniquely Positioned In Four Attractive Markets
Uniquely Positioned In Four Attractive Markets Aftermarket Energy Reclamation Carbon Credits Refrigerants Optimization Market Size Market Size Market Size Market Size Intl: $3 Billion Intl: $100M + Intl: $20B + Intl: $100B +** U.S.: $1 Billion U.S.: $50M U.S.: $1B** Market Growth Market Growth Marke
Slide 4: Aftermarket Focused
Aftermarket Focused We do not sell to OEM’s for NEW refrigerant systems Our refrigerant sales are for replacement gas in EXISTING systems 4
Slide 5: Aftermarket Distribution Network
Aftermarket Distribution Network Gas Manufacturers DuPont, Honeywell, Arkema, etc. Reclamation Distributors OEM & Large End Industrial Contractors Users Contractors Buildings & Industrial Residential & Light Commercial 5
Slide 6: Evolution of The Refrigerant Aftermarket By Type
Evolution of The Refrigerant Aftermarket By Type Hudson sells & reclaims all types of refrigerant CFC: 100% reclaimed HCFC: Limited reclaim due to oversupply. Reclaim expected to grow as phase out progresses HFC: May become more widely reclaimed with future phase out 6
Slide 7: Refrigerant Sales & Reclamation Market
Refrigerant Sales & Reclamation Market Total Domestic Refrigerant After Market Estimated At Approximately $1 Billion Currently 5-7% of aftermarket is served by reclaimed refrigerant R-22 gas estimated at more than 60% of domestic refrigeration supply Refrigerant Today, Honeywell, DuPont & Arkema
Slide 8: The Issue: Venting Dirty Gas
The Issue: Venting Dirty Gas • Contaminants typically develop in refrigerant systems − Typical contaminants are oil, water, acids, etc. • Today, it is illegal to vent refrigerant gases into the atmosphere • The largest segment of the market (over 70%) is made up of residential contractors and light
Slide 9: Leading Reclaimer In the U.S.
Leading Reclaimer In the U.S. Distributors Large End OEM & Contractors Users Independent Contractors Buildings & Industrial Residential & Light Commercial As prices increase contractors and distributors have more incentive to sell back dirty gas 9
Slide 10: EPA Creates Supply Gap
EPA Creates Supply Gap lbs of R-22 (MM) • “EPA seeks to avoid unnecessary disruptions in the marketplace and to promote a smooth transition for society.” • EPA seeking a three-fold growth in reclamation Recent “No Action Assurance” letters to importers & producers of R-22 reduced the 2012 amount o
Slide 11: EPA Gets A Second Chance
EPA Gets A Second Chance EPA evaluating existing allocations for 2013-2014 • Issued proposed rule to further reduce allowances for production and consumption of R-22 in the range of 11% - 47% relative to 2009 Final Rule • New final rule expected to be issued later this year • Recent “No Action Assur
Slide 12: History Should Repeat Itself
History Should Repeat Itself CFC Phase-Out 1996 Price of Refrigerant: $1 $28 (2 Years) Europe R-22 Phase-Out 2010 Price of Refrigerant: $1 $30 (2 Years) United States R-22 Phase-Out 2012 Price of Refrigerant: $4 $9 (2 Weeks) ? 12
Slide 13: EPA Gets A Second Chance
EPA Gets A Second Chance Price per pound could exponentially increase the market size $800M ($28 per lb) Total Refrigerant Aftermarket (millions) Hudson’s Estimated Market Share $32M ($4 per lb) *Not reflected above is Hudson’s anticipated growth in market share Hudson is the largest reclaimer with
Slide 14: Energy Optimization
Energy Optimization • Large and rapidly growing market – Hudson can leverage broad customer base • A/C Systems are the first or second largest users of energy; Estimated annual energy costs of $35 Billion • Steam Energy Usage; Estimated annual energy costs of $200 Billion Customers are beginning to
Slide 15: State of The Art Optimization Technology
State of The Art Optimization Technology • Predictive/Diagnostic Services – Chiller Chemistry – Fluid Chemistry – ChillSmart • Performance Optimization System – 4 U.S. Patents – System for measuring, modifying, and improving the efficiency of energy systems – Designed to reduce overall CO2 emissions
Slide 16: Emerging Way For Hudson to Monetize Access To Phased-Out Gasses
Emerging Way For Hudson to Monetize Access To Phased-Out Gasses USED REFRIGERANTS = High Global Warming Potential AIR CONDITIONING HUDSON RECLAIM MARKETS ? CARBON MARKETS PHASED-OUT GASES DESTRUCTION (No ODS Emissions) 16
Slide 17: Financial Review
FINANCIAL REVIEW 17
Slide 18: Historical Revenue Growth
Historical Revenue Growth Quarterly Revenue Annual Revenue $ millions $18.0 $50 Q1 Q2 Q3 Q4 16 44.3 $16.0 14.8 $45 14.7 $14.0 13.1 13.8 $40 37.2 11.4 11.9 $35 33.1 $12.0 11.3 $10.0 8.8 9.1 $30 26.9 8.1 8.3 8 23.4 24.2 $8.0 6.9 6.6 $25 5.8 6.5 19.2 $6.0 5.0 4.7 $20 4.1 3.9 $4.0 2.7 2.8 2.8 2.8 $15 $2
Slide 19: Hudson Technologies Europe
Hudson Technologies Europe • Strategic joint venture bringing Hudson’s products and services to Europe, the Middle East and North Africa • Europe is ahead of US in phase-outs and provides significant opportunity for growth • Developing nations are 15 years behind developed nations • Opportunity to d
Slide 20: Foundation For Building Shareholder Value
Foundation For Building Shareholder Value • 12.7% organic CAGR since 2005, domestic refrigerant, reclamation and optimization services - Expecting 3-fold growth in reclamation • Recent increases in R-22 price strengthen HDSN’s bottom line growth and are expected to drive reclamation – Experienced hi
Slide 21: Contact Us
Contact Us Company Contact Brian Coleman, President & COO Hudson Technologies, Inc. (845) 735-6000 ext. 6007 Investor Contact John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) (203) 972-9200 21
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