Slide 1: Investor Presentation
Filed Pursuant to Rule 433 Registration Number 333-179541 May 16, 2012 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC
Slide 3: Power Industry Ripe for Disruption
Power Industry Ripe for Disruption Integrates uncontrolled power flows into economical, clean and reliable power systems Grid is built on old technology Rise of distributed renewables Limited ability to store electricity Diesel generated electricity is expensive
Slide 4: Mega-Trend Market Opportunity
Mega-Trend Market Opportunity Grid Storage Market Size ($ Billion) * Top 5 Markets in 2017 (in billions $) * UK $10.7 Germany $10.0 US $25.7 Japan $20.3 China $20.0 * Source: Lux Research March, 2012
Slide 5: Major Market Driver: Increasing Solar Power
Major Market Driver: Increasing Solar Power Solar Power Continues to Climb: Decreasing cost to deploy & maintain * Supportive environmental laws and mandates State & federal incentives Increase in cost of diesel fuel Migration away from nuclear power Distributed solar power will not scale without th
Slide 6: Unstable/Congested Grid
Unstable/Congested Grid Distributed solar and wind generation cause intermittency Unpredictable loads Increase in electricity costs Poor real-time control Commercial & Industrial Residential Microgrid Distributed Resources Load Serving Entity Industrial Customer Commercial Customer Multi-Dwelling Un
Slide 7: Solution: Networked Smart Storage with ZBB EnerSystem
Solution: Networked Smart Storage with ZBB EnerSystem Shock absorber for rapid change Network of reserve capacity Clips demand peaks Replaces Demand Response Reduces the need for diesel Integrates renewables and storage Blends AC and DC circuits Commercial & Industrial Residential Microgrid Distribu
Slide 8: ZBB EnerSystem
ZBB EnerSystem Simultaneous money saving operations Modular electronics and storage Plug & Play operation Patented technology On-grid or off-grid operation Enables penetration of renewables Grid control asset Storage agnostic
Slide 9: ZBB EnerSection Power & Energy Control Center
ZBB EnerSection Power & Energy Control Center ZBB EnerSection - Cisco router for power Microgrid-in-a-box Patented common DC bus Identical power modules; software configured Easily expanded in the field Proprietary inverters to 125 kW; ETL certified to UL 1741 -30C to +50C temperature range
Slide 10: Cost Comparison: Renewable Integration with Storage & Grid
Cost Comparison:Renewable Integration with Storage & Grid 49% less expensive than conventional project cost* Common components Single point of connection to Grid Common software Factory tested as a system Less project risk * Source: Internal company estimates Expansion Delivered Equipment Install De
Slide 11: ZBB EnerStore Energy Storage System
ZBB EnerStore Energy Storage System Zinc-bromide flow batteries Lowest long-term cost of ownership Wide temperature range 1-8 hour discharge times 5x energy density of vanadium flow batteries Cost less than Li-ion Modular and transportable Scalable from 50kWh to 1MWh Environmentally friendly, easy t
Slide 12: Cost Saving of ZBB EnerStore Compared to Lead Acid
Cost Saving of ZBB EnerStore Compared to Lead Acid Complete battery replacement Vs plastic stack replacement Lead acid batteries are about five times the OPEX vs. EnerStore Lead acid typically has more than two times the service costs Flow batteries can save $600,000 over project ZBB Flow Lead Acid
Slide 13: Target Market by Application
Target Market by Application Microgrids Ensure reliable power in environments that are unstable and rely on generators for a portion of their power Commercial Buildings Integrate renewables with storage and smart grid interface. Minimize the use of diesel generators. Off-Grid Lower cost for communic
Slide 14: Off-Grid Market Opportunity
Off-Grid Market Opportunity 1.4 billion people have no electricity Poor grids depend on diesel fuel Military fuel costs dollars and lives Telecom depends on diesel fuel & lead acid Problems Integration of intermittent AC and DC circuits with storage is complex Costly, unreliable storage options Dies
Slide 15: Remote Grid Project Example: US Military
Remote Grid Project Example: US Military ZBB is the market leader in storage design wins for the U.S. military market Fort Sill microgrid; 500kWh project with Eaton Trailer mounted EnerSection for forward operating bases and Homeland Security 1MWh system for Naval Facilities Engineering Command Tran
Slide 16: Major Market Driver: Microgrids
Major Market Driver: Microgrids Can function as autonomous islands of power during times of emergency Use a mix of energy sources, including renewables Need intelligent power management and storage to be reliable and cost-effective Remote/off-grid Military stationary base campus environment commerci
Slide 17: Data Centers & UPS Integration
Data Centers & UPS Integration ZBB EnerSystem works seamlessly with existing DC based UPS systems Integrates renewables, storage, grid input and DC output, included LED lighting Use of system to supplement diesel genset Provides stable supply of power from renewables >30% efficiency savings using DC
Slide 18: Building Integration Example: Hawaii Mid-Rise Residential
Building Integration Example: Hawaii Mid-Rise Residential Power Systems Challenge Expensive ($0.28-0.33/kWh), unreliable electricity 4 hour daily peak rate Grid instability due to renewable saturation Emissions compliance & fuel costs make diesel back-up cost prohibitive 6000 elevator back-up system
Slide 19: China Joint Venture
China Joint Venture ZBB Energy holds 34% share and controls JV through Hong Kong holding company Began operation at the end of 2011 with $13.4 million in registered capital Partnered with PowerSav and two State Grid companies First twelve ZBB EnerStore systems in assembly and test May-July 2012 time
Slide 20: International Strategic Relationships
International Strategic Relationships Honam Petrochemical Corp. Honam is a $12 Billion division of the Lotte Group ($50 Billion in assets) Collaboration on cost reduction and ramp of V3 ZBB EnerStore battery Exclusive distribution in Korea, non exclusive in Japan, Taiwan, Malaysia, Singapore, Vietna
Slide 21: ZBB Operations
ZBB Operations 1 MWh ZBB EnerStore capacity per month (1 battery module per day) Increase to 1.5 MWH per month with proportional increase in direct labor ZBB EnerSection assembly and test in ZBB facility 25 kW inverter ETL certified to UL 1741 60 & 125 kW inverters expected to be ETL certified to UL
Slide 22: ZBB Projects
ZBB Projects United States Oregon State Calif. Public Utility Comm. NAVFAC/SEI (So. Calif.) NAVFAC/SNI (So. Calif.) General Atomics (So. Calif.) Major Sports Stadium (Arizona) Military - Undisclosed (Texas) Eaton/Ft Sill (Oklahoma) Lower Valley (Wyoming) DoD/Transportable (Wisconsin) UWM (Wisconsin)
Slide 23: Product Sales Funnel & Backlog
Product Sales Funnel & Backlog Backlog of 55+ ZBB EnerStores as May, 2012 Shipments Backlog q2-11 q3-11 q4-11 q1-12 q2-12 q3-12 Market Segment Number of Opportunities Dollar Value Remote Grid 13 $12,369,998 Commercial Building 5 $ 1,750,076 Micro Grid 18 $13,316,234 Strategic Partner 4 $ 4,350,000 O
Slide 24: ZBB Key Takeaways
ZBB Key Takeaways Addressing fast-growing, mega-trend global market opportunity ZBB EnerSection is the Cisco Router of power Smart storage solves distributed grid problems Strong IP position creates sustainable advantage Backlog demonstrates product acceptance At inflection point; shipments began in
Slide 25: Contact Us
Contact Us Company Contact: Eric Apfelbach President & CEO eapfelbach@zbbenergy.com Office: (262) 253-9800 x 123 Mobile: (608) 576-7549 Investor Relations: Justin Vaicek Liolios Group, Inc. Tel (949) 574-3860 ZBB@liolios.com