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Omnitek Engineering, Corp.

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Presentation on theme: "Omnitek Engineering, Corp."— Presentation transcript:

1 Omnitek Engineering, Corp.
Natural Gas –Abundant and Inexpensive Fuel for Transportation & Industry Diesel-to-Natural Gas Conversions New Natural Gas Engines

2 Safe Harbor Statement This presentation contains forward-looking statements about our achievements, future results, goals, levels of activity, performance, and other future events. We believe the expectations reflected in our forward-looking statements are reasonable, although we cannot guarantee achievements, future results, levels of activity, performance, or other future events. These statements are based on management’s current expectations and actual results may differ from these forward-looking statements due to numerous factors, including risks related to our ability to raise additional capital, liquidity, revenue growth, operating results, industry, technology and products. You should not place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained herein are made as of the date of this presentation, and we undertake no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this presentation, unless otherwise required by law. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. 2

3 Investment Highlights
Market Natural gas vehicles exhibit a 30% compound growth rate since 1991 – multi-billion dollar market. Favorable pricing of CNG relative to diesel, dramatic reduction of emissions and government regulations (CO2) driving CNG growth. Diesel-to-Natural Gas Engine Conversions Superior patented and proprietary technology Established as Best Technology by the marketplace Fulfills Unique Niche Market Need Product Sales and Marketing Only provider of economically sound solutions for large fleets Market ready products and existing customer base Well established in Thailand, Myanmar, Bangladesh, Peru, China, others US Market is developing quickly (Thanks T. Boone) Financial Sales show increasing trend Revenues projected to grow substantially with funding Company has no debt obligations Corporate Experienced management team with demonstrated results Fiscally Responsible, Conservative Governance One conversion shop in each large metropolitan area could result in $ 100 million in sales per year. 3

4 Diesel-to-Natural Gas Engine Conversions
Opportunities TODAY’S MARKETS Diesel-to-Natural Gas Engine Conversions New CNG Engines Conversion Kits for Diesel-to-Natural Gas New CNG engines Project management capabilities including onsite conversions CORE COMPETENCIES OEM provider to Multinational HD Engine Builders Manufacture of NG Engines Manufacture of NG Gensets / Co-Gen (CHP) Units US Domestic Market HD Truck Conversions Stationary Engines Conversions (irrigation, power generators) New NG Engines EXPANSION OPPORTUNITIES 4

5 Omnitek’s Profile Headquartered in San Marcos, California (OMTK)
Fully Reporting Share Structure: Shares Outstanding 16,006,398 Float 1,821,862 Authorized Shares 125,000,000 Business Strategy: Reducing the need for diesel fuel in the transportation industry. Lower energy costs and reduced emissions. Natural gas - US domestic fuel. Supplying new natural gas engines and diesel-to-natural gas conversion technologies. Specific engagements with distributors targeting fleet operators, businesses, utilities and municipalities. Positioned to enter US and other markets. Focus on NG producing countries and GHG reduction mandates. Converting diesel engines to natural gas, most viable solution. 5

6 Market and Drivers 6

7 US Natural Gas Market U.S. Energy Bill and H.R. 1835 Omnitek agrees with the United States Government and the “The Pickens Plan” - Must get away from foreign oil dependency Natural gas is the best alternative to diesel fuel. Over 5000 Omnitek conversion kits operating around the world. Diesel engines have a service life of up to 20 year, why discard them early? Engine conversions – only viable business model. There are millions of diesel engines in trucks, buses & generators. Any diesel engine can be converted to natural gas. Natural gas can reach strictest emission targets, costs less than diesel or gasoline and there are large reserves. Vehicle and Engine manufacturers offer no solution for millions of in-use engines in trucks, buses and gensets. 7

8 Industry Drivers Growing Market: The Pickens Plan states “We must get away from foreign oil dependency and Natural gas is the best alternative to diesel fuel. In the USA up to 8 million heavy-duty vehicles could be powered by natural gas.” Cleaner Air: CNG engines can reduce greenhouse gas emissions 15%- 30%, Nox and particulate emissions 50%-90% when compared to diesel engines. Regulatory Incentives: U.S. Energy Bill and H.R Favorable Pricing: Natural Gas is on average 25% to 80% less expensive than traditional fuels. No Reliance on Crude: Natural Gas is readily available in various geographies. In the U.S. 98% of Natural Gas used is from North America, versus petroleum of which 64% is from foreign sources. Omnitek Only Company Offering OE-Quality Diesel-to-Natural Gas Conversion Technology For Millions Of Existing Diesel Engines. 8

9 Market Growth In the USA up to 8 million heavy-duty vehicles could be powered by natural gas.”  Option # 1.  Replace up to 8 million old diesel trucks with new natural gas powered trucks – very expensive. What to do with millions of old trucks? Will require massive Government subsidies. No truck manufacturer has the capacity. Option #2 . Replace up to 8 million old diesel engines with new natural gas engines – expensive. What to do with millions of old engines? Will require massive Government subsidies. No engine manufacturer has the capacity. Option # 3. Convert existing diesel engines to operate with natural gas. This is proven technology and is affordable. No Government Subsidies required. Return on Investment (ROI) generally under 2 years. All three options above will result in: Lower energy costs; Use of US made fuel; Lowers dept by not sending billions out of the country to buy oil; Supports US economy; Cleaner air; Lower greenhouse gas emissions. Only Option # 3 is feasible and affordable, and puts thousands back to work. One conversion shop in each large metropolitan area could result in $ 100 million in sales per year. 9

10 Natural Gas Pricing The U.S. national average CNG price is projected to be $1.87/gal below the equivalent diesel price in 2010 A vehicle that drives 100,000 miles a year would save $12,500 on fuel costs alone before taking into account tax credits or other incentive programs Gap Between U.S. Average Diesel Price ($/GAL) and CNG Price ($/DGE) 10

11 Alternative Fuel Matrix
Advantages Disadvantages Bio-Diesel/ Ethanol Can be used in existing engines Helps farmers Domestically produced No perceived emissions Inexpensive Abundant Clean-burning Technology available now Home refueling possible Reduced CO2 emissions Non-sustainable Natural resource intensive Doesn’t reduce CO2 emissions Fuel Cell Vehicles Decades away Economics Limited range Not suitable for HD use (Trucks) Inefficient use of Energy Resources Quadruples need for Power plants Electric Cars Natural Gas LNG / CNG Limited number of filling stations 11

12 Omnitek’s Products and Services
New Natural Gas Engines Natural Gas Engine Conversion Kits Client Specific Application Development Engine Management Development (OE Customers) High-pressure Natural Gas Filter Management of Large-scale Conversion Projects 12

13 Natural Gas Conversion Products
Heavy Duty Engine Conversions Diesel engines, new or old, converted to run on inexpensive and clean-burning natural gas. Transportation, Stationary, Industrial and Marine applications. New Natural Gas Engines Option to engine conversions. Supply vehicle manufacturers manufacture Gensets. Omnitek supplies engineering support to rebuild the engines in the local markets on a "Technology Transfer" basis. Engines equipped with the Omnitek CNG fuel system, can be tuned to the EURO 6 / US 2010 emissions standard. 13

14 Conversion Components
14

15 Natural Gas Conversion ROI
Thailand Conversion Kit Installation Example Kit Cost (NA Engine) = $ 2,500 CNG Gas Tanks = $ 5,000 Conversion Labor (Asia) = $ 2,500 Profit Markup = $ 5,000 Cost to Customer $ 15,000 Truck driving 6,000 miles/month = 1,000 Gallons Diesel @ $ 3.00 / Gallon Fuel cost is $ 3,000 / month Natural gas costs 50% of Diesel – saving $ 1,500 / month Return On Investment = 10 Months $1,500/mo Ongoing Profit & Low-polluting 15

16 New Engine Products Omnitek sells complete turn-key natural gas engines in several sizes and configurations. Better option for some applications New OEM applications - trucks, buses, generators, pumps Lower cost than multinational engine manufacturers Can meet US2010 and EURO VI emission standards 16

17 Product and Technology Roadmap
Product development roadmap is focused on six primary areas: Identification of specific applications or customer needs. Partnerships with key customers and government entities. 1. 2. Creation of complete product solutions at sustainable prices. Hydrogen engine and conversion kits. 4. 3. Manufacture/Package Natural Gas Generators and Co-Gen Units. Manufacture / Assemble Natural Gas Engines, Trucks and Buses. 5. 6. 17

18 Target Markets Target Markets
Every large metropolitan area >200,000 diesel trucks, >50,000 buses. Primary Markets and Driving Factors: Large natural gas reserves. Government mandates to use local fuel. Greenhous Gas (CO2) reduction. Energy cost reduction. Natural gas producing countries must stop flaring gas. Tremendous pollution source. These countries must find uses for the natural gas. Focus U.S. Market Millions of high polluting industrial and transportation engines must be converted, extensively modified or shut down - EPA and CARB mandates. Trucking industry - only three NG engines currently meet 2010 emissions standard. Clean Diesel Technology - very expensive. Natural Gas Act and HR1835 encourages the use of natural gas. Strong economic and regulatory market forces help market expansion. 18

19 Market Engagement The Company presently successfully markets its products worldwide to engine manufacturers, system integrators, fleet operators, engine conversion companies and end-users. China Thailand Bangladesh Myanmar Malaysia Philippines Egypt India U.S. Europe Mexico Current Distribution Planned Expansion 19

20 Management Team Werner Funk – CEO of the Company from its formation in May of Mr. Funk has over 30 years experience in international business, manufacturing, engineering and marketing. Jan Quigley – CFO of the Company since Has worked in the electronics and automotive industries for over 30 years. 20

21 Financial Information
21

22 Revenues and Margin TO BE UPDATED 22

23 Sales Projections TO BE UPDATED 23
Note: Figures based on minimum funding goal of $ million dollars being met and access to $10 million line of credit 23

24 Balance Sheet TO BE UPDATED 24

25 Use of Proceeds Inventory Build-up, Supply Chain Contracts $ 0.4
(US$ M) Inventory Build-up, Supply Chain Contracts Sales Force, Tech Support, Investor Relations, Engineering, Training and Service Reps Certification Testing of Products for US/Euro Market Working Capital Total $ 0.4 $ 0.5 $ 0.6 $ 1.0 $ 2.5 25

26 Investment Highlights
Market Natural gas vehicles exhibit a 30% compound growth rate since 1991 – multi-billion dollar market. Favorable pricing of CNG relative to diesel, dramatic reduction of emissions and government regulations (CO2) driving CNG growth. Product Superior patented and proprietary technology Established as Best Technology by the marketplace Fulfills Unique Niche Market Need Sales and Marketing Only provider of economically sound solutions for large fleets Market ready products and existing customer base Well established in Thailand, Myanmar, Bangladesh, Peru, China, others US Industrial Market developing quickly (Thanks T. Boone) Financial Sales show increasing trend Revenues projected to grow substantially with funding Company has no debt obligations Corporate Experienced management team with demonstrated results Fiscally Responsible, Conservative Governance 2626

27 Thank You Werner Funk, CEO 27


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