2. Safe Harbor Statement
The information included in this presentation and statements made by
or on behalf of the Company relating hereto may be forward-looking
within the meaning of the safe harbor clause of the Private Securities
Litigation Reform Act of 1995 including, but not limited to, statements
as to commercialization of the Company s products and business
development activities. Editors and investors are cautioned that such
forward-looking statements involve risks and uncertainties that may
cause the Company s actual results to differ materially from such
forward-looking statements. These risks and uncertainties include, but
are not limited to, the Company s ability to generate revenues and
other factors as described in the Company s literature and filings with
the Securities and Exchange Commission.
2
3. Overview
IFT is a technology company that has developed a number of proprietary,
surfactant-based liquid fuel additive formulations that enhance the performance
of liquid hydrocarbon fuels and bio-fuels.
Focus of IFT s commercialization efforts to date: DiesoLiFTTM 10
• Provides increased fuel economy, lubricity, detergency and reduced
emissions to diesel fuel
• Enables bio-diesel fuel blends (up to B-20) to perform on par (same fuel
economy) with regular diesel
DiesoLiFTTM 10 allows companies to boost productivity, enhance performance
and life of their equipment, increase profitability and reduce downtime.
3
4. Key Considerations
• Early Stages of Commercialization
• Operational Structure:
– Manufacturing: outsourced to Multisol France and Air Products
– Distribution: outsourced to worldwide network of prominent industry
distribution partners
• Commercial Goal: the bulk sale (by the container) of IFT s additive
technology to major end-users of diesel fuel: rail operators; road transport;
and stationary power generation (distributors, additive companies, oil
companies, direct)
• Potential Market: virtually every gallon of diesel and bio-diesel consumed
in the world today is a potential market for IFT s fuel additive formulations
4
5. Global Market
Annual Revenue Potential for DiesoLiFTTM 10: $14 billion
Global Diesel Fuel Consumption (2005)
Gallons Revenue
Consumed Tons of Potential
(000 s) DiesoLiFT (000 s) (1)
North America 77,007,869 506,327 $ 3,037,960
Cent. & South America 26,131,951 171,818 1,030,905
Europe 97,723,445 642,532 3,855,190
Eurasia 13,747,209 90,388 542,327
Middle East 21,974,679 144,484 866,901
Africa 14,942,941 98,250 589,499
Asia & Oceana 103,060,194 677,621 4,065,725
Total 354,588,288 2,331,418 $ 13,988,508
Source: Energy Information Administration
(1) Assumes a selling price of $6,000 per U.S. ton
5
6. Initial Markets - Rail
Annual Revenue Potential for DiesoLiFTTM 10: ~
$280 million
Rail
Consump-on
in
Target
Markets
Diesel
Consump-on
Poten-al
Revenue
U.K.
~
238
million
gallons
$
9,520,000
Other
Europe
~
819
million
gallons
$
32,760,000
India
~
528
million
gallons
$
21,120,000
Brazil
~
383
million
gallons
$
15,320,000
U.S.
~
5
billion
gallons
$
200,000,000
Aggregate
~
7
billion
gallons
$
278,720,000
IFT has differentiated its technology and has an early mover advantage into
these markets.
* Assumes a selling price off $0.04 per additized gallon ($6,000 per US ton)
6
7. IFT s Technology
• IFT additive formulations are based on surfactant physical-chemistry, a
complex mixture of detergent substances that utilize in part naturally occurring,
renewable fractions that meet OECD bio-degradability criteria.
• Safe to handle; no harm to engine components and parts.
• Easy to use - splash blending (typical treat ratio: 1 to 600).
• Use of technology has no effect on fuel composition make up or standard
specification.
• Multifunctional – fuel economy; reduced emissions; lubricity; detergency; water
co-solvency, fuel stability.
• IFT is protected by patents and patent applications pertaining to numerous
applications of its technology.
7
8. How DiesoLiFTTM 10 Works
• When splash blended into a base fuel, DiesoLiFTTM 10 is fully and
uniformly incorporated into the base fuel. The mixture forms into, and
remains a stable solution.
• Unique surfactant molecules reduce fuel surface tension allowing for a finer
spray pattern of the fuel / air mixture in the combustion chamber.
• Atomization facilitates a more complete and efficient combustion. Less fuel
is needed for the same power output, reducing fuel consumption.
• More complete combustion => reduced emissions
– More carbon monoxide, hydrocarbons and particulates are burnt
– Less fuel burnt per unit of work => less greenhouse gas emissions
(CO2 and NOx)
8
9. Additional Benefits
• Additive formulations adsorb to the internal surfaces of the fuel system
– Form a monolayer of protection against corrosion
– Optimize fuel flow through the fuel system
• Inherent chemical properties:
– Improve fuel lubricity
– Act as a detergent in the fuel system
– Co-solve free water in the fuel system
• Reduced maintenance costs
9
10. Higher Diesel Prices Drive
ROI
Diesel Fuel Prices
3.5
3
$ Dollars
2.5
2
1.5
1
0.5
0
Jun-95 Jun-00 Jun-05 Jun-10
Diesel Fuel Prices 1.12 1.42 2.23 2.95
D-10 Savings (5%) 0.06 0.07 0.11 0.15
D-10 Cost 0.04 0.04 0.04 0.04
ROI Per Gallon 0.02 0.03 0.07 0.11
ROI to User (%) 40% 78% 179% 269%
D-10 means DiesoLiFT™ 10
10
12. Lab Test and Field
Demonstrations
• DiesoLiFTTM 10 has been tested at independent test laboratories and has
consistently demonstrated the ability to increase fuel economy, in the range of 3% to
6%:
– U.S.: Southwest Research Institute and Motive Power;
– U.K.: mi Technology (Interfleet) and Prodrive;
– Canada: the Forest Engineering Research Institute of Canada;
– South Africa: Gerotek Test Facilities; and
– China: Tsinghua University.
• Field demonstrations utilizing DiesoLiFTTM 10 have validated lab test results:
– Rail operators
– Truck and bus fleet operators
– Power generation operator
12
13. Passenger Rail: The
Interfleet Test
• Between 2006 and 2010, Interfleet Technology coordinated a series of five
trials testing the effect of using DiesoLiFTTM 10 on light rail engines (diesel
multiple units, or DMUs). Three different engine types were used ensuring a
good representation of the current passenger fleet in the U.K.
• In each of the first four test bed trials a positive effect in either increased
power or reduced fuel consumption (or both) was achieved.
• In two of the test bed trials, reductions in fuel consumption of 6.9% and
5.9% were achieved.
• In three trials, a power increase ranging from 2% to 3.5% was achieved.
• In addition, particulate matter emissions were significantly reduced in each
of the four test bed trials.
13
14. Interfleet Test
• The fifth trial consisted of a large in-service demonstration between August
2009 and January 2010:
Significant improvement in fuel consumption rates of 4.4% after the
additive was included into fuel mix despite unfavorable weather
conditions, and despite the fact that only 72% of the fuel was
additized. (Interfleet April 2010)
The DiesoLiFTTM 10 fuel additive technology has been rigorously and
independently scrutinized in both industry standard test bed procedures
and within a major in-service field trial. The additive is simple to apply,
has demonstrated consistent fuel economy improvements and hence
reduced fuel costs. (Interfleet April 2010)
14
15. Bio-Diesel Application
• Use of DiesoLiFTTM 10 enables bio-diesel blends (up to B-20) to
enter the market on par with regular diesel.
• Rail engine test at mi Technology in the U.K. demonstrated that a
B-20 (rapeseed) additized with DiesoLiFTTM 10 was able able to
recoup the approximate 4% loss in fuel economy when compared to
regular diesel.
• Another proprietary IFT additive formulation, DiesoLiFTTM BD-series,
provides superior oxidation stability, deposit formation control and
long-term storage stability to bio-diesel of varying type (B-5,
B-10…..B-100) and all underlying sources (soybean, jatropha,
rapeseed, recycled fried oil, etc.).
15
17. Marketing and Sales
• Commercial Goal: bulk sale of DiesoLiFTTM 10 to major end-users of diesel fuel:
rail operators; road transport fleets; and stationary power generation
• Strategy:
- Partner with prominent fuel additive distribution companies with existing
customers and distribution channels
- Direct sales to major oil companies
- Direct sales to end-users
• IFT Distribution Partners:
- Multisol: France; Spain; Portugal; and Belgium
- Nordmann Rassmann: Germany; Austria; Central and Eastern Europe;
Scandinavia; and Switzerland
- Caldic: U.K.
- Tide Water Oil Company: India
- Next Group: Brazil
17
18. Summary of Key Commercial
Developments
• East Midlands Trains (U.K.) – successful field demonstration led to
purchase of DiesoLiFT™10 for use in entire 89 unit light rail operation.
• Other ATOC (U.K.) Operators – continued positive results from East
Midlands should lead to purchases of DiesoLiFT™10.
• European Rail Operators – ongoing commercial discussions.
• U.S. Road Transport – distribution fleets have been successfully using
DiesoLiFT™10 since 2002
• India – Distributor Tide Water recently purchased its third container of
DiesoLiFT™ 10. Two large oil companies concluding extensive evaluations.
• Brazil – Two large Brazilian private companies evaluating DiesoLiFT™10.
• China – Swire Beverages, a major Coca-Cola franchisee, now purchasing
and evaluating DiesoLiFT™10 in 8 distribution depots.
18
19. Competition
DiesoLiFTTM 10
• Hundreds of fuel additive companies claim fuel economy improvement
• Top line additive companies offer separately specific benefits: e.g.
detergency, lubricity, cetane no. improvement, anti-gel
• The cumulative effect of these benefits may improve fuel economy
• However, IFT s DiesoLiFTTM 10 is the only combustion enhancing
technology that has extensively/consistently demonstrated fuel efficiency
improvement
19
21. Financial Data
(data as of September 30, 2010, except share price)
Share
Price
(as
of
December
13,
2010)
$
0.20
Shares
Out
101,322,284
Op-ons
Out
17,223,920
Warrants
Out
4,325,000
Fully
Dil.
122,871,204
Market
Cap
$
20,264,457
Mkt
Cp
FD
$
24,574,241
Enterprise
Value
$
23,360,396
Cash
$
1,213,845
Cash
Per
share
$
0.01
Debt
$
-‐
AR
$
90,489
AP
$
160,112
Current
Assets
$
1,460,454
Current
Liabili-es
$
3,384,850
21
22. IFT Management
• Jonathan Burst, Chairman & CEO – Has served as CEO since July 1999 and
Chairman since 2000. Mr. Burst served as Executive Vice President and Managing
Director of mergers and acquisitions at Aon Risk Services and later founded Burcor
International, an insurance brokerage firm in 1998, and has served as President
since its inception. Mr. Burst has a B.A. in Economics from the University of Missouri.
• Stuart Beath, Chief Financial Officer - Experienced in corporate finance,
investment banking, equity and debt transactions, previously with Stifel, Nicolaus &
Co and AG Edwards & Sons. Mr. Beath has a BA Psychology, Williams College, and
an MBA, Finance, University of Virginia.
• Dr. Sergio C. Trindade , Director, Science & Technology – A globally recognized
expert in fuels and sustainable energy, Dr. Trindade served as Assistant Secretary
General of the United Nations for Science and Technology for 5 years and is a
consultant to the UN, World Bank and many private/public organizations on energy
and environmental and technology issues. Dr. Trindade is a co-laureate of the 2007
Nobel Peace Prize as part of the Intergovernmental Panel on Climate Change -
IPCC. PhD, Chemical Engineering, MIT.
22
23. IFT Management
• Gary Kirk, Director, Sales and Marketing Communications – Previously served
over two decades as research chemist and business development executive for
Petrochem Carless. His extensive knowledge of the additives industry has opened
several major global markets to IFT products. BS, Physical Sciences, Ipswich
University.
• Axel Farhi, Director, Global Business Development – Served as VP of Operations
for Gulf Oil Intl in London supervising retail and lubricants operations in over 60
countries. BS, Chemical Engineering Strasbourg University, France.
• Thomas M. Powell, Treasurer - Previously in accounting management roles at
Deloitte, Ameren and CitiMortgage. BSBA Accounting, Saint Louis University.
23
24. Summary
• IFT has the top performing fuel additive technology in the world today for
fuel economy improvement, DiesoLiFTTM 10.
• IFT has emerged from independent testing phase and is in the early stages
of commercializing its technology in key growth markets.
• Distribution and outsourced manufacturing model creates operating
leverage.
• In addition to improving fuel economy in diesel and bio-diesel fuel blends,
IFT s multi-functional fuel additive formulations: reduce harmful emissions;
increase fuel lubricity; reduce foaming; increase detergency; are bio-
degradable; and reduce maintenance costs.
• Virtually every gallon of diesel and bio-diesel fuel consumed in the
world today is a potential market for IFT products.
24
25. For more information contact
Company:
Stuart Beath
(p) 314-863-3000 x417
(e) sbeath@internationalfuel.com
Investor Relations:
Todd M. Pitcher
Aspire Clean Tech Communications
(p) 760-798-4938
(e) tpitcher@aspirecleantech.com
25