Fuel Systems Solutions, Inc. NASDAQ: FSYS

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1 Fuel Systems Solutions, Inc. NASDAQ: FSYS June 2010 Investor Meetings

2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on market conditions and a variety of important factors that are discussed in the company's reports filed with the Securities and Exchange Commission from time to time and in the section entitled "Risk Factors" in Forms filed with the Securities and Exchange Commission. 2

3 Fuel Systems Solutions A leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for transportation and industrial markets. Transportation Industrial 3

4 Key Investment Considerations Capturing favorable trends and regulatory influences Spurring adoption of alternative fuel Creating growing demand Leading industry position creates a barrier to entry Broad product offering & focused technical expertise Strong relationships with marquee customers Successfully executing strategic growth strategy Expand, optimize, centralize and acquire Experienced management team with in-depth technical & operational expertise Delivering strong financial performance Scalable business model adapts to higher-demand opportunities Sustained profitability since

5 Technology Landscape Solutions Pros Cons Competing Technologies Fuel Systems Propane (LPG) Compressed Natural Gas (CNG) Proven, accessible, low-cost infrastructure Proven, abundant reserves Dependent on other fossil fuels Storage, infrastructure Biodiesel/Ethanol Renewable fuel Scalability Hybrid Electric Battery Electric Fewer emissions Zero source emissions Complexity limits near-term mass adoption Battery technology dependent, total life emissions Hydrogen/Fuel Cell No emissions as fuel cell Infrastructure 5

6 Alternative Fuels Market and Growth Opportunity Transportation Includes propane and natural gas vehicles CNG and LPG are proven, costeffective alternatives to petroleum with large penetrable market Approximately 14.6M LPG and 10.0M CNG light duty vehicles out of estimated 830M vehicles worldwide EU established target to replace 20% of liquid fueled vehicles with gaseous fueled by 2020 Industrial Includes equipment such as forklifts, sweepers and power generators Industrial energy demand expected to grow over 50% between 2005 and 2030 Natural gas consumption expected to rise over 60% between 2004 and 2030 Increasing trend toward ever more stringent emission standards as equipment must be certified compliant to be sold in US & Europe 6

7 Transportation Market Drivers Environmental awareness driving a shift to cleaner fuels Push towards energy independence CNG/LPG gaining momentum Avg. growth (total numbers) since 2000 = 29.8% per annum 2008 growth = 2.09 million vehicles (38.3% increase on 2007 growth) Source: International Assn. of Gas Vehicles 2009 Cheaper fuel source with accelerated payback period Government support and stimulus (incentives, subsidies, quotas) OEM participation Build-out of global CNG/LPG refueling infrastructure enhancing availability 7

8 Transportation Solutions Proprietary bi-fuel technology enables vehicles to run on CNG or LPG as well as gasoline Provide both components and full systems Installed base of >7M vehicles globally CNG compressors for domestic and commercial refueling applications 8

9 Diverse Transportation Distribution Channels Delayed OEM ( DOEM ) Distrubution Evolution OEM OEM Aftermarket Dealer OEM Dealer Installation Network 9

10 Transportation Differentiated Go-to-Market Strategy Pioneered DOEM distribution model Flexible distribution model and production platform adapts to demand Executing multi-brand, multiproduct and multi-channel approach Update by geography: Europe: technology gaining traction Asia/Latin America: well-positioned in growth markets US: positioned to be a leader in emerging market 10

11 Industrial Market Drivers Increasingly stringent emissions regulations for industrial equipment Significant international market opportunity through exportation of US and European emissions standards Extension of certification requirements to new categories of equipment OEMs required to manage an increasingly complex global regulatory framework 11

12 Industrial Solutions Industrial Mobile Stationary/Power Generation Auxiliary Power Systems 12 Gaseous fuel solutions for industrial mobile equipment and power generation Auxiliary power systems for truck and rail Provide components, full systems, industrial engines and integration services Deep expertise in meeting strict low emission regulations Tier 1 supplier with over 50 years of experience

13 Industrial Positioned to Address Industrial Trends Global IMPCO, GFI brands benefitting from Teleflex power business expansion of technology, customer platforms Next-gen mobile equipment systems leveraging longstanding global relationships as OEMs transition technology Stationary, large and small engine markets expanded product offering, new customer relationships Auxiliary power system solutions for truck and rail new product and distribution channel opportunities Order backlog building momentum Heavy duty (class 8 truck) solutions demonstrating scalability Partnership with OEMs to create cost-effective solutions in an evolving regulatory context 13

14 Global Capabilities Asia North America Europe South America Australia 14

15 Strategic Execution Delivers Growth Replicate DOEM Distribution Optimize production platform & accelerate integration Expand product offerings Expand transportation to address N.A. market opportunity Leverage expanded presence in Latin America & Asia Add complementary technology & product capabilities 15

16 Acquisitions Broadens solutions capabilities Enhances existing technology platform Expands geographic footprint Strategy Clear vision driven by organic growth and selected acquisitions Focused on evaluating strategic opportunities to support growth strategy Reduces input costs Leverages long-standing customer relationships Often engaged in various levels of discussion with a number of potential targets 16

17 Building A Leading Platform 2009 FSYS acquires Distribuidora Shopping, FuelMaker & Teleflex Power Systems 2009 Launches US Automotive division 2007 FSYS acquires Zavoli 2005 IMPCO acquires BRC Gas Equipment 1997 IMPCO acquires Garretson Equipment 1986 IMPCO acquires Beam Products 2006 FSYS group formed 1989 IMPCO acquired by Nasdaq-listed Air Sensors 1960 IMPCO develops 1 st LPG forklift system 1958 IMPCO is founded BRC predecessor founded

18 Strong Financial Metrics $500.0 Revenue(M) $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $ $452.3 $382.7 $265.3 $220.8 $ Gross Profit (M) $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $ 32.8% 28.4% $ % 24.5% 24.2% $108.6 $54.2 $64.1 $ % 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Gross Margin (%) Operating Profit (M) $100.0 $80.0 $60.0 $40.0 $20.0 $ 17.8% 12.0% $ % 7.3% 3.4% $46.1 $6.0 $20.2 $ % 15.0% 10.0% 5.0% 0.0% Operating Margin (%) Diluted Earnings Per Share $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ $(0.50) $2.95 $1.48 $0.46 $ $(0.72) $(1.00) 18

19 First Quarter Results of Operations (in thousands, except EPS) Three Months Ended Mar. 31, Revenue $ 80,082 $ 161,651 Gross Profit 24,337 63,601 Operating Income 11,358 44,686 Net Income (Loss) 7,070 28,218 Diluted Earnings per Share $0.44 $1.59 Growth Rate and Margin Analysis Gross Margin % 30.4% 39.3% Operating Margin % 14.2% 27.6% Net Margin % 8.8% 17.5% 19

20 Summary Balance Sheet ($ in millions) 3/31/ /31/2009 Cash and Cash Equivalents $ 73.5 $ 46.5 Accounts Receivable Total Inventories Other Current Assets Property, Plant & Equipment, Net Other Non Current Assets Total Assets $ $ Accounts Payable Short Term Debt Other Current Liabilities Long Term Debt Other Non Current Liabilities Stockholders' Equity Total Liabilities & SH Equity $ $

21 Key Investment Considerations Capturing favorable trends and regulatory influences Spurring adoption of alternative fuel Creating growing demand Leading industry position creates a barrier to entry Broad product offering & focused technical expertise Strong relationships with marquee customers Successfully executing strategic growth strategy Expand, optimize, centralize and acquire Experienced management team with in-depth technical & operational expertise Delivering strong financial performance Scalable business model adapts to higher-demand opportunities Sustained profitability since

22 Fuel Systems Solutions, Inc. NASDAQ: FSYS Thank you