Thermal Energy International (TMG) investor relations material

Business model and customer focus

• Delivers energy efficiency solutions primarily to large multinationals in food, beverage, and pharma, with 80% of business from these sectors.

• Offers both turnkey projects and equipment sales, with turnkey projects making up about two-thirds of revenue.

• Maintains strong repeat business, with top 10 customers accounting for about 70% of revenues.

• Projects are custom engineered, with a focus on guaranteed savings and fixed-price agreements.

• Expanding into indirect sales channels to reach smaller customers and simpler projects.

Technology and solutions

• Proprietary technologies include FLU-ACE, HeatSponge, GEM steam trap, Rainmaker, and LawnRoc, targeting waste heat recovery and steam system efficiency.

• Can improve industrial site thermal efficiency from 50% to 90%, capturing up to 80% of lost energy.

• Projects typically offer a three to five-year payback and long operational lifespans.

• HeatSponge and GEM steam trap are being positioned for broader distribution through new rep networks.

• Standardized equipment packages and outsourced manufacturing in Europe are planned for HeatSponge.

Financial performance and growth

• Achieved 92% growth over the last three years, with profitability returning strongly post-COVID.

• EBITDA reached about CAD 2 million on a trailing 12-month basis, with positive net income for three consecutive years.

• Cleared all debt and now holds CAD 4 million in cash, funding growth and share buybacks from free cash flow.

• Record order intake of CAD 31 million in the last 12 months, with faster project execution reducing backlog.

• No significant capital intensity; projects are cash flow positive with upfront deposits and progress payments.