Fuel Systems Solutions, Inc.
Investor Fact Sheet May 2009
Fuel Systems Solutions, a US-based company, is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. We have been a leader in the alternative fuels industry for over 50 years and believe our deep experience and focused expertise affords us a discernable competitive advantage over our competitors. We supply our solutions to the marketplace through a global distribution network of marquee customers, including 180 distributors and dealers in 60 countries and approximately 100 original equipment manufacturers. BRC, Tomasetto Achille and Zavoli®, the transportation brands started in 1962, 1996 and 1993, respectively, have placed systems and components in over 5.0 million vehicles globally. IMPCO®, the industrial brand launched in 1958, powers industrial forklifts, power generators and construction equipment. Fuel Systems Solutions, Inc., the publicly traded holding company, was formed in 2006.
Market Drivers: Economics Energy independence Environmental concerns Volatile fuel costs Abundant supplies of natural gas Government incentives to reduce automotive emissions Build-out of global refueling infrastructure Industrial mobile equipment and stationary engine trends include: • Increasingly stringent emissions regulations • Global trend to certification of compliance with emissions standards Established international markets
Investment Highlights
Growth Strategy
Proven and cost-effective technology offers “here and now” alternative to traditional fuels Global manufacturing and distribution platform to drive efficiencies, scalability and provide distribution power Strong global aftermarket distribution footprint and established OEM customer relationships Multi-brand strategy creates comprehensive product range Profitability and financial strength to pursue growth opportunities in existing and adjacent markets 2009 projections as of 5/7/09 • Revenue: $330M - $360M • Gross margin: 25% - 27% • Operating margin: 10% - 12%
FSS Revenue Growth Trajectory
Natural Gas Vehicle Growth Worldwide 1991-2008 Avg. growth (total numbers) since 200=29.8% per annum 2008 growth=2.09 million vehicles (38.3% increase on 2007 growth)
Leveraging global production platform • Flexibility to support increased volumes • Expanding relationships with existing OEM customers • Optimizing OEM model to meet automotive OEM demand Selectively pursuing complementary acquisitions • Proven M&A track record: BRC/IMPCO, Zavoli & DS • Agreed to acquire FuelMaker on 5/1/09 US Automotive Alternative Fuel Division positioned to capture U.S. market potential • Long-term US growth strategy initially targets fleet business • Closely following US regulatory initiatives for alternative fuel infrastructure
(‘000s) $ 450 $ 400
$ 383 $ 330 - $ 360
$ 350 $ 265
$ 300 $ 221
$ 250 $ 17 5
$ 200 $ 15 0
$ 118
$ 10 0 $ 50 $0 2004
2005
2006
2007
2008
* 2009
* As of May 7, 2009 press release Source: International Assn. of Gas Vehicles 2009
As of 5/5/09 NasdaqGS Symbol: Fiscal Year End: Recent Price: 52-Week Price Range: Market Capitalization: Shares Outstanding:
Diversified Platform Combines Growth With Stability Transportation
Industrial
FSYS December 31 $17.05 $9.83 - $61.24 $287.5 M 16.07 M
Gaseous Fuel Facts LPG & CNG are 40% to 60% less expensive than gas or diesel and generate significantly less emissions LPG & CNG have been used for decades in passenger transportation 20+% penetration among passenger vehicles in some countries
Proprietary bi-fuel technology enables vehicles to run on LPG or CNG and gasoline. Refueling products position Fuel Systems to participate in infrastructure build-out.
Celebrating its 50th anniversary, IMPCO provides OEM customers with turnkey fuel systems and OSHA certification and achieves relatively stable revenue streams over the regulatory cycle.
OEM Transportation Production
LPG long established as the fuel of choice for many industrial applications
Industrial Manufacturing
Company Contact: Cathy Mattison & Tim Dien Lippert / Heilshorn & Associates (415) 433-3777
[email protected]
Except for historical information, matters discussed in this fact sheet that may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. Such risks and uncertainties are detailed in the Company’s filings with the SEC.