Ocean Power Technologies, Inc. · AMEX:OPTT
Ocean Power Technologies — IPO Roadshow (April 2017)
31 slides from Ocean Power Technologies's IPO roadshow presentation, Apr 21, 2017
Slide 1: Issuer Free Writing Prospectus, April 2017
April 2017 Filed Pursuant to Rule 433 Issuer Free Writing Prospectus dated April 21, 2017 Relating to Preliminary Prospectus dated April 7, 2017 Registration No. 333 - 217209
Slide 2: Forward-looking statements
In addition to historical information, this presentation contains forward - looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward - looking statements are identified by certain words or phrases such as "may", "will", "aim", "wi
Slide 3: Free Writing Prospectus Statement
Free Writing Prospectus Statement This presentation highlights basic information about us and the proposed public offering. Because this presentation is a sum mar y, it does not contain all of the information you should consider before investing in our securities. We have filed a Registration Statem
Slide 4: Offering Summary
Hold for “Offering” slide Ocean Power Technologies Inc. OFFERING SUMMARY Ocean Power Technologies, Inc. Issuer: Exchange/Ticker: Offering Size: Securities Offered: Use of Proceeds: Bookrunning Manager: Ocean Power Technologies, Inc . NASDAQ: OPTT $9,775,000 (including 15 % over - allotment) Common S
Slide 5: Capital Structure
Total Current Assets $ 12,095,277 Total Property and Equipment, Net 194,556 Other Noncurrent Assets 130,979 Total Assets $ 12,420,812 Total Current Liabilities $ 4,596,690 Total Long - Term Debt and Capital Lease Obligations 32,107 Total Liabilities $ 4,628,797 CAPITAL STRUCTURE Selected Balance She
Slide 6: Company Description
• New Jersey headquarters • Nasdaq (OPTT) • Market capitalization: $ 13M as of 4/5/17 • Patented, proprietary technology • Approximately 30 employees with an engineering team of 20 members including masters and PhD level • New management team: COMPANY DESCRIPTION 5
Slide 7: Company Highlights
COMPANY HIGHLIGHTS • Strong intellectual property portfolio • Critical end markets, including oil & gas, ocean observing, defense & security, and communications • Estimated $8.5B total addressable market 1 • New management • Commercial product 1. See slide 10 for details 6
Slide 8: Our Oceans
OUR OCEANS Our oceans represent a tremendous, untapped source of energy and are critical to issues such as climate, weather, energy, communications, defense and security 1/6 U.S.jobs are marine - related 2 >10,000 offshore oil and gas sites 4 70% of the Earth is covered by oceans 2 >1,300 U.S. ocean
Slide 9: Challenges of Incumbent Solutions
CHALLENGES OF INCUMBENT SOLUTIONS Incumbent solutions such as battery buoys or on - site ships • Expensive • Intermittent and unreliable data collection • No real - time data transmission • Insufficient power • Limited to single - use applications • Limited data density • No awareness of failures •
Slide 10: The Solution: PB3 PowerBuoy
THE SOLUTION: PB3 PowerBuoy • Considerable life - cycle cost savings compared with incumbent solutions • Provides up to 3 kilowatts of peak power • Site - dependent average daily generated power up to 2 kilowatts • 300 watts of continuous power deliverable during days or weeks with no wave activity
Slide 11: PB3 PowerBuoy – How It Works
PB3 PowerBuoy – How It Works 10 • Floating system, anchored to the sea floor down to 3,000 meters • Heave plate and spar remain motionless in the water • Float moves vertically, independent of the spar in response to wave motion • Float motion drives electrical generator • Electricity is stored on -
Slide 12: PowerBuoy Addresses Power/Comms Needs in Globally Important End-Markets
POWERBUOY ADDRESSES POWER/COMMS NEEDS IN GLOBALLY IMPORTANT END - MARKETS ESTIMATED TOTAL ADDRESSABLE MARKET OF $8.5B $2.0B TAM $2.5B TAM $3.5B TAM $0.5B TAM 11 1. NOAA 2016 Ocean Enterprise Report 2. Global Border and Maritime Security Market Executive Summary, Frost and Sullivan report, February 2
Slide 13: Ocean Observing: $2.0B TAM
• Data collection, processing and real - time communications • PowerBuoy potentially transforms ocean environment intelligence $2.0B TAM OPT Targeting 10% 12 1. NOAA 2016 Ocean Enterprise Report 1
Slide 14: Ocean Observing Applications
• Weather forecasting • Climate change • Ocean seismometry • Ocean currents • Environmental & biological monitoring Applications Include: Lower life - cycle cost with greater power and persistence 13
Slide 15: Oil and Gas: $2.5B TAM
$2.5B TAM OPT Targeting 20% • Operations trending toward deeper waters • Industry investing in new technologies • PowerBuoy presents cost - saving opportunities • > 10,000 sites require power 14 1. U.S. Bureau of Safety and Environmental Enforcement website 1
Slide 16: Oil and Gas Applications
• Charging stations for subsea drones (AUV) • Equipment monitoring and control • Communications • Site safety and security • Subsea battery charging • Seismic mapping • Reservoir management Applications Include: 15
Slide 17: Defense and Security: $3.5B TAM
• Detection and early warning systems require persistent power and real - time communications • Remote sensing stations for maritime security • Remote radar & sonar stations • Electro - optical and infrared sensors • Networks and communications • Charging stations for subsea drones (AUV) Application
Slide 18: Communications: Cellular/Wi-Fi Over Water
COMMUNICATIONS: CELLULAR/WI - FI OVER WATER • Maritime communications limited to costly satellite • Military and civilian remote wi - fi and cellular communications • Range extension for marine and coastal waterways and airways • Voice and data relay stations Applications Include: $0.5B TAM OPT Targ
Slide 19: PowerBuoy Product Generations
PB3 - Gen1 PB3 - Gen2 PB3 - Gen3 PB15 - Gen1 PBX Over 3kW peak payload power available using new PTO 1 COMMERCIAL PRODUCT Updated PTO 1 with new modular high efficiency energy storage system Gen 2 PTO 1 and energy storage system with advanced, lighter hull design for improved power generation PB3 -
Slide 20: Implementation Strategy: Product Development
Progression Initial product concept formulation Concept validation focused on function only Initial full scale design Initial full scale prototype f ocused on function only Design tuning of initial design Second full scale prototype testing focused on form, fit and function Design update and release
Slide 21: Implementation Strategy: Market and Business Development
Progression Initial customer contact and introduction OPT value proposition and technology discussion Customer NDA and operation application discussion Customer requests for proposal and r esponse Customer application demonstration projects Final qualification and subsequent orders Market and Busine
Slide 22: Implementation Strategy: Accomplishments to Date
Final qualification and subsequent orders Customer application demonstration projects Customer requests for proposal and r esponse Customer NDA and operation application discussion OPT value proposition and technology discussion Initial customer contact and introduction Progression Progression Initi
Slide 23: Implementation Strategy: FY18 Objectives
IMPLEMENTATION STRATEGY FY18 & 19 Objectives • E xpanding marketing and business development footprint across multiple geographies • Secure multiple customer demonstration projects which lead to commercial revenues • Secure strategic supply chain, manufacturing and field service partnerships • Build
Slide 24: Use of Proceeds
• Expanding sales and marketing through new hires and target market experts • Increase product manufacturing throughput and build additional PowerBuoys to meet anticipated market demand 23
Slide 25: Summary Highlights
• Innovative offshore power solution addresses real market needs • Commercial ready product • Strong IP portfolio • Increasing market demand www.oceanpowertechnologies.com andrew@barwicki.com 24
Slide 26: Boundless ocean power, endless streaming data
Boundless ocean power Endless streaming data One PowerBuoy 25
Slide 27: Back Up Slides
BACK UP SLIDES 26
Slide 28: Sources
SOURCES Total Addressable Market The National Oceanographic and Atmospheric Administration (“NOAA”) 2016 Ocean Enterprise Report Oil & Gas Source: U.S. Bureau of Safety and Environmental Enforcement Ocean Observing The National Oceanographic and Atmospheric Administration (“NOAA”) 2016 Ocean Enterpr
Slide 29: Markets – Supporting Information
Oil & Gas Greater than 10,000 sites are currently in operation or ready for decommissioning. Ocean Observing Estimated total addressable market is $2B for 5 fiscal years beginning 2017. The market was refined for in - situ vs remote systems and also for the different types of in - situ systems such
Slide 30: PB3 PowerBuoy Commercial Design
• Compact and easily transported • Shippable using standard 40 - foot ISO shipping containers • Deployed using standard marine equipment and methods • Designed for three - year maintenance cycle as compared to one - year or less for some incumbent solutions • Survivable design for 100 - year storm c
Slide 31: Thank You
THANK YOU WWW.OCEANPOWERTECHNOLOGIES.COM