PFIE (OTCBB)Forward-looking Statements Certain statements contained herein constitute forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and otherfactors, which may cause the actual results, performance or achievements of theCompany to be materially different from those expressed or implied. Forward-looking statements involve risks and uncertainties, including but not limited to,such risks as are described in the Companys SEC filings and reports.2
PFIE (OTCBB)An Introduction to Profire3 Founded in 2002 in Alberta (service) Public in 2008; headquarters now in Utah US company Creates oilfield technologies Specializes in burner managementsystems (BMS) Received multiple awards for growthand financial management in 2012 One of the 1000 fastest-growingcompanies in the world (InternationalBusiness Times, 2012)Profire Energy is an oilfield technology company, specializing in burner management systems(BMS).
PFIE (OTCBB)Where Is a BMS Used?4Profire’s products are used in the upstream and midstream processes of the oil/gas industry (see redarrows).(Oil, Gas, Water, Chemicals & Sediment)
PFIE (OTCBB)What is a BMS?5 A high-tech, specializedoilfield thermostat Monitors, manages &reignites the flame Controls the burner flame Ignites burner flames Senses flame presence andflame failure Manages fuel to increase ordecrease flame intensity (i.e.heat up or cool down vessel) Can be managed remotelyA BMS automates inefficient and dangerous tasks with an efficient, economic system.
PFIE (OTCBB)How Does a BMS Fit In?6 A BMS uses temperature inputs todetect whether more heat is needed inthe application. It then manages thefuel flow accordingly. The BMS also detects whether a flame ispresent. If it detects a flame failure, it willreignite the flame The BMS monitors and managestemperature, and provides re-ignitionas needed. ( indicates where a BMS is used)Burner-flames create the heat within combustions applications, and are an integral part ofeffective oil/gas production & transportation.
PFIE (OTCBB)Our Role: SummaryA BMS can improve company efficiency, compliance, and safety for oil/gas companies.7With BMS Without BMSEconomics • The BMS quickly reignites the failedflame, and keeps the application within atemperature range set by the user.• The application can be monitoredremotely.• Production continues with minimalinterruption.• A worker must discover and reignite theextinguished burner flame. The workerthen reignites the application manually.• All application monitoring is donedirectly, on-site.• Production can be interrupted for longerperiods of time.Safety • The BMS assumes the risk of reignition,reducing employee accident-risk.• Employees assume the risk of reignition,which can lead to burns/explosions.Compliance • The BMS can reduce emissions byquickly reigniting a failed flame• The BMS ensures the flame is only usedwhen needed—reducing emissions• No remote monitoring or control ispossible.• The flame burns constantly (and oftenneedlessly) until the flame fails—whichwastes gas
PFIE (OTCBB)The Status Quo:Pneumatic Controls with a “Rag & Stick”8 Currently, companies usepneumatic (i.e. “air-driven”)systems to provide very basictemperature management Requires manual re-ignitionand upkeep (costly and time-consuming) BMS makes companies safer,more compliant, and moreefficient Canada already requiresoil/gas companies to use BMS [CELLREF][CELLREF]Profire BMS Installations*Potential Installations Profire Installations*estimatedCurrent industry methods are generally dangerous and inefficient.
PFIE (OTCBB)Our Industry9 US and Canada are majoroil and gas producers There are about 1.3 mil.oil/gas wells in NorthAmerica About 35,000 new wellsdrilled each year About 4,000 miles of newpipe laid each year US to be world’s largest oilproducer by 2020 (IEA)Oil and gas supply about 65% of all U.S. energy.World’s Leading Natural Gas ProducersWorld’s Leading Oil ProducersData drawn from US EIA, CIA, and Canadian Provincial Data
PFIE (OTCBB)Market Overview10 Use of BMS grew quickly after Canada mandated its use throughB.149.3-10 Sales were mostly regulatory-driven; many basic products were sold to simply fulfillregulation Recently, the economic and safety value of BMS has becomeincreasingly realized within the U.S. Sales have grown strongly without regulatory pressure Market is still served by very few companies (four major players): Profire Energy (Canada & US) The only public company specializing in oilfield BMS ACL (Alberta) Platinum (Texas) Surefire (New Mex.)The large BMS market is growing quickly, and is currently served by a small handful of companies.
PFIE (OTCBB) Our primary products include: PF 2100 An advanced, versatile BMS for a variety of applications PF1300 FIS A simple ignition system (e.g. for use with flare stacks) Airplate An adjustable airplate that meters airflow into the firetubeAdditional ProductsWe offer a number of combustion management technologies for a variety of environments.11
PFIE (OTCBB) Our service arm allows usto receive real-time andvaluable feedback aboutthe industry’s needs Services are provided by allProfire offices, and include: BMS installations &maintenance Combustion optimization(e.g. gas flow, flame quality,air flow, etc.) Flame-arrestor testingOur service team is dedicated to customer success, and are expert combustion technicians.Service12
PFIE (OTCBB)Our Customers13 Service companies,distributors, OEMs, andproducers: Our distributor networksupplies product throughoutNorth America and Brazil. In 2012 we added Cameron toour distribution network—aFortune 500 company (NYSE:CAM)We serve many companies throughout North America and the world.
PFIE (OTCBB)Brenton W. Hatch, CEO (President)Previously General Manager of Titan Technologies (a Canadian oilfield service &distribution company) and CEO of Keaton International. He is particularly experienced inoperations and marketing management, and earned a Bachelor’s degree in Education fromthe University of Alberta.Harold Albert, COOPreviously managed the burner division at Titan Technologies, and Natco Canadadoing oil/gas facility commissioning. In addition to overseeing company operations, he alsomanages company R&D and oversees al Canadian operations.Andrew Limpert, CFOPreviously was a financial & strategic advisor for investment banks, and served asofficer, director, and interim CEO of Ohr Pharmaceutical. Mr. Limpert earned a Bachelor’sdegree in Finance from the University of Utah, and an MBA in Finance from WestminsterCollege in 1998.Profire has approximately 50 employees in three offices: Alberta, Utah, andTexas.Our TeamOur corporate direction begins with our experienced executive team—with a strong oil/gasbackground.14
PFIE (OTCBB)Financials: Historical15Profire’s financial history demonstrates our commitment to growth. Profire Energy is a profitableand debt-free company.IncomeStatement2009-2012(millions)March2010March2011March2012March2013(est.)March2014(est.)Revenues ($) $5.91 $8.03 $15.93 $16.7 $22.5Net Income ($) $1.28 $1.63 $3.19 $1.4 $4.2Net Margin (%) 21.6% 20.2% 20% 8.3% 18.6%
PFIE (OTCBB)IR Statistics17 Stock Metrics Price: $1.30* Market Cap: $58.70M* EPS: $0.03 Avg. Volume (Summer 2012 to Spring 2013): 4,600 12,400 Shareholder Metrics Shares Issued & Outstanding: ≈ 45,000,000 Float: ≈ 7,000,0000 % Insider-owned: 85% Total shareholders: ≈ 350 (NOBO & physical certificate)Our growing shareholder base has historically realized gains year-over-year, with the prospect ofbenefitting from our profitable growth in a large industry.*May 20, 2013
PFIE (OTCBB)Forecasts Overview18Forecast Item EstimateRevenues for Fiscal Year 2013 (April 1, 2012 – March 31, 2013) $16,700,000Net Income for Fiscal Year 2013 (April 1, 2012 – March 31, 2013) $1,400,000Revenues for Fiscal Year 2014 (April 1, 2013 – March 31, 2014) $22,500,000Net Income for Fiscal Year 2014 (April 1, 2013 – March 31, 2014) $4,200,0005%34%200%56%
PFIE (OTCBB)Net Income Forecast20$314,087$875,145$1,279,274$1,626,463$3,187,771$1,400,000$4,200,000$-$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,0002008 2009 2010 2011 2012 2013 2014TOTAL ANNUAL NET INCOME (FY)
PFIE (OTCBB)Our Future23 Additional domestic offices (e.g. Pennsylvania, Oklahoma, etc.), distributionsagreements, sales channels, and services Expand our international distribution to new countries (e.g. Russia, India, China, Australia, Brazil, Mexico, New Zealand) Engineer new technologies for a larger product line Improved valve train technologies Improved power supply in oilfields Enhancements to flagship products Continue expanding intellectual property Pursue potential acquisition candidates to reduce costs and enter new markets Could also acquire a manufacturing company (vertically integrate) Pursue an uplisting to NASDAQ or AMEX; cross-list to TMXBy pursuing new growth opportunities, establishing new relationships, and developing newtechnologies, we believe the future is promising for Profire stakeholders.
PFIE (OTCBB)Key Takeaways24 Profire is largely undiscovered High-tech margins in a strong,proven industry Gross/Net margins typically60/20% 1.3M wells… ≈$4 billion market Proven ability to sell systemson economic merits Profire affords opportunity toparticipate in oil/gas market,without drilling risk Entering a phase of leverageand executionProfire Energy is a growing, profitable, and debt-free oilfield-tech company. Our products improvethe industry’s efficiency, safety, and compliance.$4,352,536$6,257,269$5,912,350$8,033,926$15,925,213$16,700,000$22,500,000$-$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002008 2009 2010 2011 2012 2013 2014TOTAL ANNUAL REVENUES(FY)
PFIE (OTCBB) Investor Relations department Nathan McBride P: (801) 701-2502 E: email@example.com Website (www.ProfireEnergy.com) Investor presentation Investor packet Up-to-date financials & charts Subscribe for updates on our PR page Learn about our industry & productsResourcesOur investor relations department is happy to answer questions about our industry, company, orfinancials.25
PFIE (OTCBB)Igniting New Possibilities26®PROFIRE ENERGY INC. 2013 ALL RIGHTS RESERVED.