LiqTech International, Inc. Lytham Partners Fall 2026 Investor Conference

All right. Hello everyone, and thank you all for joining us during the Lytham Partners Fall 2026 Investor Conference. My name is Robert Blum, Managing Partner here at Lytham Partners. Up next, Fei Chen, Chief Executive Officer at LiqTech International, will be taking us through the company's slide presentation. As a reminder, LiqTech trades under the ticker symbol LQT on the Nasdaq. All right, let's get started. Fei, welcome. I will turn the floor over to you for your presentation.

Thank you, Robert, for the opportunity to participate in the Lytham conference, and thank you all for joining us. I am Fei Chen, President and CEO of LiqTech. Today, I would like to introduce LiqTech, explain why our silicon carbide technology is differentiated, and most importantly, show how we are building a more scalable and profitable business around it. Today's remarks include forward-looking statements and non-GAAP financial measures. Please review the important information on this slide and our SEC filings for additional details. For those who are not familiar with LiqTech, let me start with a short overview. We are a Danish clean tech company listed on Nasdaq. Our core technology is our patented silicon carbide membrane, which we manufacture ourselves in Denmark. We then engineer these membranes into filtration systems for demanding water and emission applications.

Today, we operate across six business areas: commercial, aquatic, marine, water for industry, water for energy, DPF and membrane, and plastics. Together, the markets we are targeting represent an estimated addressable market of about DKK 6 billion. in 2025, we generated DKK 16.5 million of revenue. Our 2026 revenue guidance is DKK 20 million-DKK 23 million, representing growth of 21%-39%. Following our finance in June, we ended the second quarter with DKK 15.7 million in cash and restricted cash, and were substantially debt-free. We have the technology, commercial proof points, manufacturing capacity, and now a stronger balance sheet to support growth. Let me summarize the investment case in six points. First, proprietary technology. We own and manufacture our patented silicon carbide membranes, supported by more than 20 years of manufacturing knowhow. Second, standardized shorter cycle platforms.

Products such as QlariFlow for aquatics and PureFlow for industry water allow us to configure systems instead of engineering every project from scratch. This is an important driver for scalability and margin improvement. Third, commercial proof points are compounding. Aquatics achieved record quarterly revenue of DKK 1.5 million in quarter 2, and after operating our first system, a U.S. steel customer placed a DKK 2.1 million follow-on order for four additional systems. Fourth, we have recapitalized the balance sheet. Our June financing generated approximately DKK 18 million in net proceeds, and we ended June with DKK 15.7 million of cash and were substantially debt-free. Fifth, we see operating leverage ahead. Revenue grew 13% in 2025, where operating expenses remained roughly flat. As revenue increases, we have the opportunity to grow much faster than our fixed cost base. Sixth, we have clear financial goals.

Positive adjusted EBITDA in 2027, followed by positive EBIT and free cash flow in 2028. The key now is execution. LiqTech combines centralized manufacturing with local customer support. Our core silicon carbide membranes are manufactured in Ballerup, Denmark, where we maintain our key technology and production knowhow. Our systems are assembled in Hobro, Denmark. At the same time, we are moving closer to our customers. We have a service center in Texas supporting North America, and our joint venture in Nantong provides local capabilities for the important Chinese marine market. Today, we have more than 300 systems installed worldwide, including more than 170 marine scrubber installations. Our model is simple, keep our core technology and manufacturing expertise in Denmark. We are bringing service and customer support closer to our markets.

Let me spend a moment on why our technology matters. Many of the water streams our customers need to treat are hot, oily, abrasive or chemically aggressive. They are difficult conditions for conventional polymeric membranes. Silicon carbide is fundamentally different. It provides high flux, strong chemical and thermal resistance, efficient cleaning and a long service life. For our customers, the important point is not simply the material. It is reliable operation, has higher treatment capacity, and a lower total cost of ownership in difficult conditions. That is the competitive advantage we bring to the market. Owning the membrane technology allows us to capture value at several levels. At the first level, we sell membrane as filters directly as components. At the second level, we integrate our membranes into complete engineered filtration systems.

Once those systems are installed, they create aftermarket opportunities through replacement membranes, spare parts, service, and system expansion. This is important because the value of the customer relationship does not stop with the initial system sale. Standardization makes this business model even stronger. By reusing engineering, procurement, and manufacturing across similar systems, we can reduce cost per system as volume grows. The total industry and municipal water treatment equipment market is enormous, estimated at approximately $300 billion. We think that the filtration market is about $14 billion, and we estimate the area related to LiqTech at around $6 billion. But we do not need to pursue everything. We focus on applications where the water is difficult to treat, where treatment is important to the customer's operation, and where our silicon carbide technology provides a meaningful advantage.

For a company of our size, capturing even a relatively small share of these selected markets can create substantial growth. We organized our portfolio into six business areas, and each has a different strategic role. Aquatics and marine are our growth engines. Water for industry is selective and scaling, where we are seeing opportunities to repeat a standardized solution across similar industry applications. Water for energy remains a very large opportunity, but we are pursuing it selectively and increasingly through partnerships. DPF and membranes provides a foundation of established customer relationships and manufacturing activity. Plastics is a complementary industry business. The important point is that we are not depending on one single market or one large project to drive the entire company. This slide explains one of the most important changes in our strategy. We have learned that a strong technical result does not necessarily mean fast commercial conversion.

Large industry and energy projects can involve years of testing, validation, budgeting, and capital approval. The customer controls that timeline. We therefore want more of our growth to come from markets where the product is configured rather than designed from scratch, and where the sales cycle is measured in months rather than years. For the larger energy opportunities, we increasingly want to work through partners who bring customers access and scale, and we are underwriting less large project revenue in our planning. Our model is simple: land, prove, expand. When the first installation demonstrates the value in real operation, then expand with that customer and similar customers. Aquatic is a good example of this strategy. Our QlariFlow platform is standardized and configurable, which means we do not start with a new engineering design for every project.

We sell primarily through local distributors who identify projects, support installation, and provide local service. This gives us reach without having to build a large direct sales organization in every market. In 2025, we sold a record 34 pool systems. In 2026, we have continued to expand through major projects in Australia and the Netherlands, as well as our first QlariFlow project in the U.S., located in Wyoming. Revenue reached a record DKK 1.5 million in quarter two. Each new installation is important, not only for the initial revenue, but also because it creates a reference, aftermarket opportunity, and a platform for additional business in the local market. Marine is our second growth engine. We provide water treatment systems for several applications on large commercial vessels, including scrubbers, fuel ISO systems, and EGR systems. The key change is how we serve this market.

Through our joint venture in China, we have moved engineering, sourcing, assembly, and service closer to the shipyard where vessels are being built, where our core silicon carbide membrane continue to be manufactured in Denmark. This improves local competitiveness and responsiveness. We are protecting our core technology. During 2025, we received orders for eight iCER systems in quarter two 2026. The first two iCER units passed the factory acceptance testing. We also received an order for our four EGR water treatment systems in China. The opportunity is to build a broader and more consistent marine business across several engine platforms and through aftermarket service over the life of each system. Water for industry is becoming increasingly tangible for us. We are focused on selected applications such as steel and industry wastewater reuse, where the water can contain oil, solids, and other contaminants that are difficult for conventional membranes.

Our QureFlow platform allow us to address these applications with a standardized modular system. A very good example is our U.S. steel customer.