Exhibit 99.l
ZOLTEK COMPANIES, INC.
2005 SHAREHOLDERS' MEETING
FEBRUARY 21, 2006 [photo]
BREAKTHROUGH APPLICATION - WIND ENERGY
FORWARD-LOOKING STATEMENTS [photo]
THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, WHICH ARE BASED UPON
THE CURRENT EXPECTATIONS OF THE COMPANY. THIS PRESENTATION ALSO CONTAINS
PRO-FORMA FINANCIAL STATEMENTS, WHICH ARE UNCONVENTIONAL AND ARE BASED ON
THE COMPANY'S VIEW OF ITS FINANCIAL POSITION AND RESULTS. BECAUSE THESE
FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO RISKS AND
UNCERTAINTIES, THERE ARE A NUMBER OF FACTORS THAT COULD CAUSE THE COMPANY'S
PLANS, ACTIONS AND ACTUAL RESULTS TO DIFFER MATERIALLY. AMONG THESE FACTORS
BUT NOT EXCLUSIVE OF OTHERS ARE:
THE COMPANY'S ABILITY TO CONTINUE TO RE-ACTIVATE ITS FORMERLY IDLE
MANUFACTURING FACILITIES ON A TIMELY AND COST-EFFECTIVE BASIS;
THE COMPANY'S ABILITY TO MEET CURRENT ORDER LEVELS FOR CARBON FIBERS;
THE COMPANY'S ABILITY TO SUCCESSFULLY ADD NEW CAPACITY FOR THE PRODUCTION
OF CARBON FIBER AND PRECURSOR RAW MATERIAL;
THE COMPANY'S ABILITY TO RAISE NEW CAPITAL AND INCREASE ITS BORROWING
AT ACCEPTABLE COSTS;
THE COMPANY'S ABILITY TO MANAGE CHANGES IN CUSTOMERS' FORECASTED
REQUIREMENTS FOR THE COMPANY'S PRODUCTS;
THE COMPANY'S ABILITY TO CONTINUE INVESTING IN APPLICATION AND MARKET
DEVELOPMENT;
THE COMPANY'S ABILITY TO MANUFACTURE LOW-COST CARBON FIBERS AND
PROFITABLY MARKET THEM; AND PENETRATE EXISTING, IDENTIFIED AND
EMERGING MARKETS.
THE TIMING AND OCCURRENCE (OR NON-OCCURRENCE) OF TRANSACTIONS AND EVENTS
THAT DETERMINE THE FUTURE EFFECT OF THESE FACTORS ON THE COMPANY,
AS WELL AS OTHER FACTORS, MAY BE BEYOND THE CONTROL OF THE COMPANY.
THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENT
TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION.
REVIEW OF FINANCIAL RESULTS [photo]
FY 2005
-------
NET SALES $60,204
COST OF SALES 56,836
AVAILABLE UNUSED CAPACITY COST 2,347
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 9,170
--------
OPERATING LOSS FROM CONTINUED OPERATIONS ($ 8,149)
INTEREST EXPENSE FOR ORDINARY FINANCING 414
INCOME TAX EXPENSE 708
--------
NET LOSS FROM CONTINUED OPERATIONS ($ 9,271)
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS (1,719)
--------
NET LOSS BEFORE COST ASSOCIATED WITH CONVERTIBLE
DEBENTURE FINANCING ($10,990)
- -------------------------------------------------------------------------------
INTEREST EXPENSE ON CONVERTIBLE DEBENTURES (2,584)
AMORTIZATION OF FINANCING FEES, DEBT DISCOUNT AND
CONVERSION FEATURE (8,469)
LOSS ON VALUE OF WARRANTS AND CONVERSION FEATURE (16,574)
OTHER, NET (1,719)
- -------------------------------------------------------------------------------
NET INCOME (LOSS) ($40,393)
REVIEW OF FINANCIAL RESULTS [photo]
FY 2005 Q1 2006
------- -------
NET SALES $60,204 $ 16,721
COST OF SALES 56,836 13,966
AVAILABLE UNUSED CAPACITY COST 2,347
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 9,170 2,557
-------- --------
OPERATING LOSS FROM CONTINUED OPERATIONS ($ 8,149) ($ 880)
INTEREST EXPENSE FOR ORDINARY FINANCING 414 45
INCOME TAX EXPENSE 708 97
-------- --------
NET LOSS FROM CONTINUED OPERATIONS ($ 9,271) ($ 1,022)
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS (1,719) 33
-------- --------
NET LOSS BEFORE COST ASSOCIATED WITH CONVERTIBLE
DEBENTURE FINANCING ($10,990) ($ 989)
- ----------------------------------------------------------------------------------------------------------
INTEREST EXPENSE ON CONVERTIBLE DEBENTURES (2,584) (741)
AMORTIZATION OF FINANCING FEES, DEBT DISCOUNT AND
CONVERSION FEATURE (8,469) (1,992)
LOSS ON VALUE OF WARRANTS AND CONVERSION FEATURE (16,574) 10,022
OTHER, NET (1,719) 12
- ----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) ($40,393) 6,288
CONVERTIBLE DEBENTURE FINANCING [photo]
CURRENTLY OUTSTANDING LOANS
---------------------------
LOAN AMOUNT INTEREST RATE DUE DATE CONVERT PRICE/MUST
- ----------- ------------- -------- ------------------
$ 7.8 MILLION 7.5% FEB. 2008 $3.50
$20.0 MILLION LIBOR +4% AUG. 2008 $20.00/$30.00
$ 5.0 MILLION 7.5% MAR. 2009 $12.50/$25.00
$15.0 MILLION 7.5% MAY 2009 $12.50/$25.00
$10.0 MILLION 7.5% AUG. 2009 $13.07/$26.00
$20.0 MILLION - COMMITTED
CONVERTIBLE DEBENTURE FINANCING [photo]
CURRENTLY OUTSTANDING WARRANTS
------------------------------
NUMBER OF WARRANTS DUE DATE CONVERT PRICE AMOUNT TO ZOLTEK
- ------------------ -------- ------------- ----------------
260,370 FEB. 2008 $ 5.00 $ 1,301,850
87,884 JUNE 2006 $ 5.40 474,575
23,977 SEPT. 2006 $ 7.50 179,825
500,000 APR. 2008 $13.00 6,500,000
457,000 AUG. 2008 $17.50 7,997,500
140,000 MAR. 2009 $14.50 2,030,000
420,000 MAY 2009 $14.50 6,090,000
231,000 AUG. 2009 $15.16 3,502,000
--------- -----------
2,140,731 SHARES $28,075,750
-----------
SARBANES - OXLEY
PUBLIC ACCOUNTANT'S OPINION [photo]
ZOLTEK HAS AN UNQUALIFIED OPINION
ZOLTEK IS A HIGH RISK CLIENT TO ANY ACCOUNTING FIRM DUE TO OUR POOR
FINANCIAL PERFORMANCE
INTERNAL CONTROLS ARE MUCH BETTER THAN REFLECTED IN ACCOUNTANT'S REPORT
QUESTION FOR THIS YEAR [photo]
NOW THAT WE HAVE PROVEN THAT ZOLTEK'S
STRATEGY WAS CORRECT, CAN WE MAKE THE
COMMERCIAL CARBON FIBERS BUSINESS
[photo] PROFITABLE
YES, I BELIEVE WE CAN!
THIS YEAR!
REVIEW OF FINANCIAL RESULTS [photo]
FY 2005 Q1 2006 JAN 2006
------- ------- --------
NET SALES $ 60,204 $ 16,721 $ 8,240
COST OF SALES 56,836 13,966 6,395
AVAILABLE UNUSED CAPACITY COST 2,347
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 9,170 2,557 1,027
-------- -------- -------
OPERATING LOSS FROM CONTINUED OPERATIONS ($ 8,149) ($ 880) $ 818
INTEREST EXPENSE FOR ORDINARY FINANCING 414 45 15
INCOME TAX EXPENSE 708 97 44
-------- -------- -------
NET LOSS FROM CONTINUED OPERATIONS ($ 9,271) ($ 1,022) $ 759
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS (1,719) 33 0
-------- -------- -------
NET LOSS BEFORE COST ASSOCIATED WITH CONVERTIBLE
DEBENTURE FINANCING ($10,990) ($ 989) $ 759
- -------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE ON CONVERTIBLE DEBENTURES (2,584) (741)
AMORTIZATION OF FINANCING FEES, DEBT DISCOUNT AND
CONVERSION FEATURE (8,469) (1,992)
LOSS ON VALUE OF WARRANTS AND CONVERSION FEATURE (16,574) 10,022
OTHER, NET (1,719) 12
- -------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) ($40,393) 6,288
CARBON FIBERS SALES [photo]
[graph]
YEAR TECHNICAL FIBERS CARBON FIBERS
2003 14.1 13.2
2004 14.8 18.4
2005 19.7 34.5
2006 Projected 24 95
2007 Projected w/o expansion 30 130
2007 Projected with expansion 30 200
ZOLTEK PRICING STRATEGY [photo]
FINALLY WE ARE ABLE TO HAVE A PRICING STRATEGY
o PRICE TO SUPPORT THE CARBON FIBERS COMMERCIALIZATION STRATEGY
o PRICE TO MAINTAIN A REASONABLE MARGIN TO SUPPORT EXPANSION
o PRICE TO COMPETE WITH OTHER MATERIALS, NOT ONLY WITH OUR CF COMPETITORS
o AFTER THE JANUARY 2006 PRICE INCREASES, WE ARE WHERE WE WANT TO BE
o CONTINUE TO BUILD VALUE ADDED PRODUCTS TO INCREASE PROFITABILITY
CURRENT PRICE - $8.00 + PER POUND
SHORT-TERM DEMAND PROJECTIONS [photo]
[graph]
ALTERNATE
AIRCRAFT / SPORTING ENERGY / OIL/OFF-SHORE AUTOMOTIVE INFRASTRUCTURE / INDUSTRIAL TRANSPORTATION / THERMOPLASTIC /
YEAR AEROSPACE GOODS WIND ENERGY DRILLING CONSTRUCTION MARINE ELECTRONICS
(MILLION LBS)
2004 12.5 10.5 2.0 0.5 1.0 3.0 5.0 2.0 3
2005 15.0 11.5 4.0 2.0 2.0 4.0 7.0 2.5 4
2006 18.0 12.5 7.0 4.0 4.0 6.0 10.0 3.5 6
2007 21.0 13.5 11.0 7.0 8.0 8.0 14.0 5.0 8
2008 24.0 14.5 16.0 11.0 12.0 10.0 19.0 7.0 10
ANNOUNCED INDUSTRY CAPACITIES [photo]
[graph]
YEAR OTHER SGL CYTEC HEXCEL MITSUBISHI TOHO TORAY ZOLTEK
(MILLIONS LBS)
2004 3.0 2.0 4.0 3.0 3.0 12.0 14.0 7
2005 3.0 2.0 4.0 3.0 3.0 12.0 16.0 9
2006 3.0 2.0 4.0 3.0 7.0 12.0 20.0 13
2007 6.0 3.0 4.0 6.0 7.0 15.0 22.0 19
2008 with
Zoltek adding
5M lbs in 2007 6.0 3.0 4.0 6.0 7.0 18.0 25.0 24
WIND ENERGY IS CURRENTLY THE LARGEST AND [photo]
FASTEST GROWING MARKET FOR THE
COMPOSITE MATERIALS
CARBON FIBERS IS THE ENABLING MATERIAL IN
WIND ENERGY
o In 2005 23% + growth in newly installed Mega Watt capacity worldwide.
o Annual composite materials sales is growing at greater than 35%
o Economic and technical forces overwhelmingly favor carbon fibers
WIND ENERGY GROWTH HISTORY [photo]
[graph]
ROTOR DIAMETER INCREASES WITH TURBINE SIZE [photo]
Increasing the wind swept area is
greater power output at lower costs.
[graph]
ZOLTEK IS WELL POSITIONED [photo]
[graph]
Top 10 Turbine suppliers
Vestas 2783
Gamesa 1474
Enercon 1288
GE Wind 918
Siemens 507
Sulzon 322
Repower 276
Mitsubishi 214
Ecotecnia 214
Nordex 186
Others 334
8,516 MW DELIVERED IN 2005
[photo]
[photo]
OFF-SHORE OIL AND GAS
DRIVING FORCE: $30 + PER BARREL [photo]
CARBON FIBER IS THE ENABLING MATERIAL
o Offshore developments will continue moving to deeper waters.
o The weight of steel elements under extreme loads, higher pressures and
dynamic service are limited.
o Steel becomes ineffective as a load carrying element due to elongation.
ZOLTEK EXPERIENCE
o Buoyancy products demand has exploded in the last 12 months
o Carbon fiber umbilical, tether and riser solutions have become truly
enabling to harvest oil & gas at 8000 feet depths.
o Zoltek has worked with Aker Kvaerner to develop new solutions based on
carbon fiber rods to replace steel.
CARBON APPLICATION [photo]
[photo]
KVAERNER OILFIELD PRODUCTS [photo]
==============================================================================
Subsea System Composite Steel Joint Weight Savings
Joint
- ------------------------------------------------------------------------------
Clip connector dry weight 1520kg 1520kg -
- ------------------------------------------------------------------------------
Riser, Dry weight 4700kg 6800kg 2100kg (31%)
- ------------------------------------------------------------------------------
Riser, submerged weight 3200kg 5925kg 2725kg (46%)
- ------------------------------------------------------------------------------
Choke & Kill, Dry weight 1800kg 4300kg 2500kg (58%)
- ------------------------------------------------------------------------------
Choke & Kill, submerged weight 1525kg 4025kg 2500kg (62%)
- ------------------------------------------------------------------------------
Riser assembly, Dry weight 6500kg 11,000kg 4600kg (41%)
- ------------------------------------------------------------------------------
Riser assembly, Submerged Weight 4725kg 9950kg 5225kg (53%)
==============================================================================
- ------------------------------------------------
COMPOSITE TETHERS [photo]
- ------------------------------------------------
[photo] Strands: bundled [photo]
carbon fiber rods
PVC Profiles
PE Outer Jacket
- ------------------------------------------------
DEEP WATER UMBILICAL PRODUCT [photo]
- ------------------------------------------------
o Aker Kvearner has won 4 significant Umbilical projects
in the gulf at depths of 2600 meters
o Carbon fiber rods with Zoltek Panex35 will be used for
stiffness enhancement to dynamic sections.
o First two umbilical sections are complete - second two
will be finished by May '06.
o Tether projects to follow [photo]
OTC AWARD - ON
NEW TECHNOLOGY
ZOLTEK'S EXPERIENCE IN THE GLOBAL
AUTOMOTIVE INDUSTRY [photo]
THE MAIN CHALLENGE FOR ADVANCED CARBON COMPOSITES LIES NOT IN PROVING THEIR
PERFORMANCE, BUT IN ADAPTING THEM TO THE AUTOMOTIVE INDUSTRY'S WORLD:
o A STRONG METALS HERITAGE.
o AUTOMATED PRODUCTION METHODS
o LARGE VOLUME, HIGH QUALITY CONSISTENCY.
o COST COMPETITIVENESS WITH OTHER MATERIALS FOR A GIVEN FUNCTION
KEY AUTOMOTIVE COST FINDINGS [photo]
o THE MAJOR BARRIERS TO DEPLOYING CARBON FIBER IN SERIES OEM
PRODUCTION ARE MANUFACTURING AND ASSEMBLY COSTS AT THE OEM
IN A METAL ENVIRONMENT.
o THE COST OF CARBON FIBER AS A RAW MATERIAL INPUT IS NOT THE
BARRIER.
o UP TO 45% WASTE IS COMMON IN SOME PROCESSES.
o NEW LOWER COSTS CONVERSION AND MOLDING PROCESSES RESULTING
IN LESS WASTE WILL BE REQUIRED.
[photo]
BMW M6 - FRONT & REAR BUMPER BEAMS. [photo]
RESIN TRANSFER MOLDING
[photo]
BMW M6
P0017467 BMW Group PressClub: www.press.bmwgroup.com
(C) BMW AG Nur fur Pressezwecke / For press purposes only 12/2004
BMW M6 - ROOF SUPPORT & STRUCTURAL ROOF
ELEMENTS. RESIN TRANSFER MOLDING [photo]
[photo]
BMW M6 Carbon-Dach
BMW M6 roof made of carbon
P0017476 BMW Group PressClub: www.press.bmwgroup.com
(C) BMW AG Nur fur Pressezwecke / For press purposes only 12/2004
DAIMLER - MCLAREN SLR ROADSTER
REAR "SCUTTLE PANEL" ADVANCED SMC - MENZOLIT-FIBRON [photo]
[photo]
DAIMLER - MCLAREN SLR ROADSTER
REAR "SCUTTLE PANEL" ADVANCED SMC - MENZOLIT-FIBRON [photo]
[photo]
FERRARI ENZO, F430, 612 SCAGLIETTI -
BRAKE SYSTEMS - CARBON / CERAMIC DISC BRAKES [photo]
Brembo Ceramic Disc Brakes
[photo]
CHEVROLET CORVETTE Z06 - FRONT FENDERS -
FUTURE FLOOR SYSTEM - PREPREG AUTOCLAVE & RTM
VERMONT COMPOSITES / MFG [photo]
[photo]
LONG-TERM GROWTH POTENTIAL [photo]
[graph]
SIGNIFICANT OPPORTUNITIES AND SCALE-UP ISSUES
ALTERNATE
AIRCRAFT / SPORTING ENERGY / OIL/OFF-SHORE AUTOMOTIVE INFRASTRUCTURE / INDUSTRIAL TRANSPORTATION / THERMOPLASTIC /
YEAR AEROSPACE GOODS WIND ENERGY DRILLING CONSTRUCTION MARINE ELECTRONICS
(MILLION LBS)
2004 12.5 10.5 2.0 0.5 1.0 3.0 5.0 2.0 3
2005 15.0 11.5 4.0 2.0 2.0 4.0 7.0 2.5 4
2006 18.0 12.5 7.0 4.0 4.0 5.5 10.0 3.5 5.5
2007 21.0 13.5 11.0 6.0 7.0 7.5 14.0 5.0 7.5
2008 24.0 14.5 16.0 9.0 9.0 10.0 19.0 7.0 9
2009 26.5 15 19 11 12.5 13 23 8.5 10.5
2010 29 15.5 21 14 16.5 17 27.5 10 12
2011 32 16 23 18 20 22 33 12 13
2012 35.5 16.5 25 21 26 26.5 39 14.5 15
2013 39 17 28 24 34 31 46 17.5 16.5
ZOLTEK STOCK PERFORMANCE [photo]
[graph]
ZOLTEK COMPANIES, INC.
2005 SHAREHOLDERS' MEETING [photo]
FEBRUARY 21, 2006
BREAKTHROUGH APPLICATION - WIND ENERGY