Plug Power, Inc. · NASDAQ:PLUG
Plug Power — Investor Presentation (November 2010)
27 slides from Plug Power's investor presentation, Nov 2, 2010
Slide 1: November 2010
November 2010 The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording or otherwise - without the permiss
Slide 2: Plug Power Inc. Safe Harbor Statement
Plug Power Inc. Safe Harbor Statement This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the number of GenDrive units we expect to ship in 2010 through 2012, our projecte
Slide 3: Experienced Management Team
Experienced Management Team 2 Andy Marsh, President & CEO • Joined Plug Power in April 2008 • Co-founder and CEO of Valere Power (sold to Eltek ASA in 2007) • 18 years with Lucent Bell Laboratories in sales and technical management positions • BSEET from Temple, MSEE from Duke and a MBA from SMU Ger
Slide 4: Executive Summary
Executive Summary 3 Plug Power is the leader in commercialization of fuel cell solutions • Develops, manufactures, integrates and services proprietary fuel cell solutions • Over 13 years experience with fuel cell technology; 245 issued patents, 30 pending • Over 1000 units in the field and 2 million
Slide 5: Plug Power Currently Focused on Material Handling in North America
Plug Power Currently Focused on Material Handling in North America GenDrive Products Operational Benefits, Large Market Opportunity and Path to Profitability 4 Increased Productivity Class 1 Sit-down Lift Trucks Lower Operational Costs Additional Commercial Space Zero Emissions Class 2 Large Market
Slide 6: Key Benefits of GenDrive Systems Implementation
rive Value positio Key Benefits of GenDrive Systems Implementation Increased Productivity Reduced Operational Expenses @ Enable forklifts to operate at @ Economic lifetime up to 1.5x — 2.0x consistent full speed and power at all longer than lead acid batteries times @ Proven productivity gains 1 Ref
Slide 7: Fuel Cell Powered Forklift Trucks Market Opportunity
iss 1 — 5 Fuel Cell Powered Forklift Trucks 5 Fuel Cell Powered Market Opportunity Trucks @ Hydrogen a proven and sustainable alternative energy source for motive power + Compelling energy source for the future $1 9.9Bn* + Strong government and international funding + Clean, energy efficient and fue
Slide 8: Key Characteristics of Plug Power's Target Customers
Key Characteristics of Plug Power’s Target Customers Criteria Desired Rationale 7 Class 1, 2, 3 forklifts in Food, Consumer/Retail, Industries served distribution centers and Manufacturing & Distribution facilities Efficient utilization of Fleet number 50+ trucks hydrogen infrastructure Maximize pro
Slide 9: Customer logos
@ i] Walmart >< re) Wegmans oN _ Cita — &SYSCO CONSOLIDATED FedEx BRIDGESTONE ° Freight Firestone fi G cvs @ “plug power
Slide 10: Sales Strategy
Sales Strategy 9 2010 - 2011 • Focus on the North American Market - Direct sales to targeted large accounts - Leverage OEM dealer network for other accounts 2012 • International Expansion - Product portfolio available - Leverage relationships with large international companies • Coke • BMW • P&G • F
Slide 11: Tax Credit & Government Incentives Overview
Tax Credit & Government Incentives Overview 10 Current Fuel Cell Tax Credit • Currently offers tax credit equal to $3,000/kW up to 30% cost of fuel cell system • Calculation excludes cost of fuel cell balance of plant and fork lift components • Eligible for §1603 grant-in-lie of credit Proposed Fuel
Slide 12: Customer Success
Customer Success 11 • Site Success - Greer, South Carolina- 86 units - Mix of class-1, -2 and -3 - First BMW plant to use fuel cell-powered forklift trucks • New facility built without battery infrastructure • Entire fleet deployed with GenDrive fuel cell power units • Affirming global commitment to
Slide 13: Customer Success
Customer Success 12 • Sysco Houston - new 585,000 sq. ft. greenfield facility • No battery infrastructure • 98 Forklift trucks are 100% powered by Plug Power Power fuel cells • Multi-distribution center commitment • Involved in the development & testing of GenDrive since 2001 • Operates 100+ DCs wit
Slide 14: Customer Success
Customer Success 13 • Site Success - Sarasota, FL - 65 units • Existing facility converted to hydrogen fueling • Old battery storage facility now used to store more product • Conversion expected to reduce carbon emission by ~132 metric tons annually • Entire fleet deployed with GenDrive fuel cell po
Slide 15: Customer Success
Customer Success 14 • Site Success - Charlotte, NC: 40 units - San Leandro, CA: 37 units • Reiterates commercial readiness of Plug Power solution for increasing productivity and reducing carbon footprint • Provided Class 1 sit down counterbalance GenDrive • Operates 100+ DCs with 2000+ forklift truc
Slide 16: Customer Success
Customer Success 15 • New 450,000 sq. ft. facility in Canada with over 60 forklift trucks exclusively powered by Plug Power Power • Eliminated need to change out lead acid batteries • Expected GHG reduction up to 72%, compared to batteries charged from the grid • Strong supporter of Plug Power Power
Slide 17: What Our Customers Say
What Our Customers Say 16 “Sysco is committed to energy and operational “Hydrogen fuel cells not efficiency, and consistently strives to find a greener only provide greater way of doing business. We are proud to introduce productivity and lower our first installation without battery infrastructure f
Slide 18: Sales Channel Success
Sales Channel Success 17 • Leading NA forklift truck manufacturer 100% owned by Toyota • Strong supporter of fuel cell technology and productivity gains • Independent distributor of GenDrive in NA with nationwide coverage • More then 20 dealers across NA • Other OEM distributor agreements to follow
Slide 19: Strong Partnership Relationships
Strong Partnership Relationships 18 • Leader in the design and manufacture of hydrogen fuel cells stacks • Exclusive supplier of fuel cell stacks for GenDrive™ power units through 2014 for North America material handling market • Plug Power is exclusive integrator of Ballard stacks for material hand
Slide 20: Hydrogen Infrastructure Partners and Strategy
Hydrogen Infrastructure Partners and Strategy Partners Strategy 19 Established relationships with key industrial gas suppliers Hydrogen supplied on-site at customer locations Cooperation with suppliers to approach new and existing customers Cost and availability of hydrogen critical to fuel cell dep
Slide 21: Licensing Agreement with IdaTech
Licensing Agreement with IdaTech 20 $5M IP license agreement and sale of certain hard assets Allows Plug Power to monetize investment in continuous-run and intermittent back-up power technology • Licensing rights to technology and know-how • Royalty arrangements for sub-licensed products sold Mainta
Slide 22: Refocused Business Strategy and Capital Plan
Refocused Business Strategy and Capital Plan 21 Primary focus on material handling market and GenDrive™ product development • Projecting shipments of 650 - 800 units, 500 - 800 orders in 2010 • 12+ trials over past 12 months • Distribution agreements with Raymond in place Sales and marketing-focused
Slide 23: Near Term Financial Projections
Near Term Financial Projections 2010 2011 2012 Shipments (units) Revenue ($ mil) Gross Margin on Product Sales (%) EBITDAS ($ mil) Operating Cash ($ mil) 22 650 - 800 1,800 - 2,300 3,400 - 4,400 high teens - mid 30’s - mid mid 60’s - low low 20’s 40’s 80’s high single low 20’s - mid Negative digits
Slide 24: What Needs to Happen to Achieve Financial Projections
What Needs to Happen to Achieve Financial Projections 23 2010: • Finalize deal with Sysco for multiple facilities • 4 - 5 new customers signed up to deals in 2 nd half of 2010 • Work through component sourcing issues to have availability of inventory • Work with partners to insure adequate fueling s
Slide 25: 2013 and Beyond
2013 and Beyond 24 Continued annual growth in shipments and revenue of 25%+ Revenues of $100M+ Gross margins in excess of 30% Material handling market expansion outside North America as well as increased penetration at existing customers Profitable and growing repeat business through parts and servi
Slide 26: Conclusion
Conclusion 25 Hydrogen a compelling alternative energy solution for material handling and motive power applications Plug Power is the leading provider of fuel cell solutions for motive applications • Established first-mover advantage in industry • 85% market share for fuel cell powered lift trucks i
Slide 27: Headquarters
26 HEADQUARTERS 968 Albany Shaker Road Latham, New York 12110 Phone: (518) 782-7700 Fax: (518) 782-9060 www.Plug Powerpower.com