Advanced Lithium Electrochemistry (cayman) Co. Ltd. · TPEX:5227
Advanced Lithium Electrochemistry (cayman) — Investor Presentation (May 2014)
40 slides from Advanced Lithium Electrochemistry (cayman)'s investor presentation, May 2014
Slide 1: Aleees: New Energy Solution can be Self-Sustainable
Aleees New Energy Solution can be Self-Sustainable
Slide 2: Energy Storage System Company
Energy Storage System Company • Energy independence and air quality control are top national initiatives in Asia. • Aleees’ scalable business model will reach hyper-growth once the e-bus operating cost achieve diesel parity. 2
Slide 3: How the Business Model drives the Business
How the Business Model drives the Business 1. Leader in LFP cathode materials, with 20% global market Cathode share and 30% gross margin. Material BU 2. 90% customers are China battery cell makers. 3. Used in storage and powertrain batteries. Electric Bus BU 1. Leader in Taiwan E-Bus with 41 buses o
Slide 4: Aleees Holds Key IP To Achieve Diesel Parity
Aleees Holds Key IP To Achieve Diesel Parity Cathode material defines E-BUS power density, cycle life and safety of a battery. Battery Swapping System Battery LFP-NCO Module Cathode Battery Design and Cell Management Material Design and Management Aleees has a Asset-Light, Virtually-Vertical-Integra
Slide 5: Cathode Material BU
Cathode Material BU —
Slide 6: Aleees Claims 20% of Global LFP Market
Aleees Claims 20% of Global LFP Market 3 Key Differences: Superior Cost/Performance: Customers using Aleees cathode material is able to charge 10% higher ASP with only 5% increase in cost to battery cell makers. Consistent Performance: Material uniformity is key to battery quality, creating stro
Slide 7: Core Competitive Advantages
Metal Oxide LiFePO4 Uniform Carbon Coating – Increase Life Expectancy Core Nano-level Processing – Competitive High Yield Advantages Rate and Reasonable Unique NCO Cost compound – High Capacity, Stable Structure 7
Slide 8: LFP Materials Outgrow Others
LFP Materials Outgrow Others Battery Chemistry: LFP (LiFePO4 lithium ferrous phosphate), LMO (LiMnO2 lithium-manganese dioxide), LNO (lithium-nickel oxide), NMC (LiNiMnCoO2 lithium-nickel-manganese-cobalt-oxide), LCO ( lithium cobalt oxide) Table Source: IEK Report 2012.10 8
Slide 9: Different Materials for Different Applications
Different Materials for Different Applications Safe and long cycle life. No 2004 High power. Less Universal LFP Battery temperature concerns. Solution Best for EV and storage. Notebook or consumer product 2000 battery, but unstable. Safety and NMC Battery cycle life are also concerns. 1997 Power too
Slide 10: End Applications for Secondary Battery
End Applications for Secondary Battery 2011 Market Size: USD 50 billions Portable Transportation 2020 Market Size: 23% 38% USD 200 billions Stationary, UPS 38% Grid Storage Portable 1% 7% Stationary, UPS Transportation 23% 37% Grid Storage 33% Source: Japan Government compiled by SANYO Electric Co.,
Slide 11: Transportation: New and Replacement Market
Transportation: New and Replacement Market New market: Electric Bus Replacement: Lead-Acid Unit: Million Cars Source: Pike Research (2012.08) Source: Pike Research (2012.09) 11
Slide 12: Where is LFP Material Market Demand
Where is LFP Material Market Demand LFP Material Storage Transportation Demand (Unit: MT) 2012 2015 2012 2015 Grid (Global) E-Bus (China) New Market 400 4,000 1,200 4,400 Base Station (China) SSV (Global) Replacement 600 4,000 200 2,400 1. Adding up storage and transportation sector, market demand i
Slide 13: China Base Station LFP Demand
China Base Station LFP Demand Year 2012 2013 2014 2015 Battery Demand 500 1000 1800 2500 (RMB millions) LFP Demand (MT) 600 1,200 2,400 4,000 Growth - 100% 100% 67% Market Trend 1. China base station increases from 2.25 million units in 2012 to 3.85 millions units in 2015. 2. Lead-acid battery is us
Slide 14: Electric Bus BU
Electric Bus BU
Slide 15: How Aleees LFP Improves Overtime
How Aleees LFP Improves Overtime 3 Times Category / Year 2005 2009 2015 Energy 120 220 300 From year Density(Wh/L) 2005 to 2015, 6 Times over ten years, Life Cycle (1C Rate) 1000 2000 6000 Aleees is confident to improve LFP performance by 18 times! Cost (US$/Wh) 1.5 0.6 0.4 End user cost 73% -67% pe
Slide 16: Why Go for Electric Bus? Battery Design Technology Break Through
Why Go for Electric Bus? Battery Design Technology Break Through High Energy Density Lower Cost-per-kWh 155 mAh/g Battery High Voltage Design Materials 220Wh/L 300Wh/L 400~500Wh/L Past Future Long Cycle Life Cost-per-use = Cost-per-kWh / Cycle-Life Battery Material Battery Management Improvement Des
Slide 17: E-bus Opportunity is in Asia
E-bus Opportunity is in Asia Unit: Car Asia 15,000 buses Asia 7,000 buses Source：Pike Research (2012 Augest) 17
Slide 18: The Right Starting Point: E-Bus
The Right Starting Point: E-Bus Battery Utilization High Low Short Distance Long Distance Variable Distance (Urban Area) Fixed Route City eBus High (Mass Transport Shuttle eBus Intercity eBus System) EBRT Charging Facilities Utilization Fixed Area Logistics eTruck (Industrial Use) Service eCar eTaxi
Slide 19: Battery Swapping System – Taiwan
Battery Swapping System – Taiwan Battery leasing and services are maintained by Aleees or 3rd party. Vehicle cost close to diesel bus 19
Slide 20: Aleees Leads Taiwan E-Bus Market
Aleees Leads Taiwan E-Bus Market Comparing Aleees with other players: Total bus on road 41, mileage 1.1mn kilometers. Aleees the only one use battery- swap system. Highest % made in Taiwan. Receive highest satisfaction rate from users. 20
Slide 21: Taiwan E-Transportation Opportunity
Taiwan E-Transportation Opportunity Taiwan Incentive Grant Program: Target to replace 6200 city buses within 10 years total incentive grand NTD 20bn E-Bus industry net worth NTD 100bn in 10 years Unit/Year 1 2 3 4 5 6 7 8 9 10 Total E-Bus 100 300 500 700 700 700 800 800 800 800 6200 Station 35 100 1
Slide 22: Aleees China Opportunities
Aleees China Opportunities Bonluck Bus in Nanchang City Yuyao City In March, Aleees signed two Letter of Intent. One was with Bonluck Bus, one of the 17 chartered new energy bus manufacturers in China. And another one was with Yuyao city government. 22
Slide 23: China E-Transportation Opportunity
China E-Transportation Opportunity China Incentive Grand Program: (Sept 2013) New guidelines define New-Energy Vehicle as pure electric vehicles, plug-in hybrids and fuel-cell vehicles, leaving out the more conventional gas/ diesel-electric hybrids from the subsidy scope. (10 meters and above New Gu
Slide 24: China E-Transportation Opportunity
China E-Transportation Opportunity China Incentive Grand Program : (Sept 2013) 1. 12 out of 28 trial cities are considering using battery swap solution, instead of traditional charging system. 2. Battery electric city-buses are eligible for up to 500,000 RMB subsidy from central government. 3. Betwe
Slide 25: Swap vs. Charge
Swap vs. Charge Swap mode Charge mode System level identity Close Open User Frequency High Low Vehicle Routing Fixed Route, Random Regional Distance per trip (12M bus) <100KM >200KM Distance per trip (8M bus) <160KM >200KM Space Constraints Little/No High Prevention of Failure Strong Weak Down-time
Slide 26: New Energy Buses Technology Comparison
New Energy Buses Technology Comparison Strengths : (1) No limitation on mileage. (2) Swapping battery in 6~10 minutes. (3) Completely solve air pollution problems. Aleees’ (4) Operational costs close to Diesel buses. (5) No need for Battery-Swap government infrastructure, the operators owns the swap
Slide 27: Solid Shipment Record
Solid Shipment Record a) Shipped 900 tons in 2013 and 1,157 tons in 2012. Cathode b) Still the largest shipment record in the world, but mild Material BU decline in 2013 as customers waiting on Chinese government’s new energy policy. a) The only battery-swap system provider, guarantee to run 100km p
Slide 28: Historical Financials and Shipment Record
Historical Financials and Shipment Record Revenue/Loss EPS NT$ NT$mn 800 8 653 577 600 6 454 400 4 282 200 121 2 0 0 2010 2011 2012 2013 3M2014 (200) -2 -2.05 -0.81 (400) -4 -3.62 -3.36 (600) -6.93 -6 (800) -8 28
Slide 29: New Energy Solution Can Be Self-Sustainable If Its Cost Approaches Traditional Solutions
New Energy Solution Can Be Self-Sustainable If It’s Cost Approaches Traditional Solutions Thank you!
Slide 30: Appendix
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Slide 31: About Aleees (stock code: 5227)
About Aleees (stock code: 5227) • Date of Incorporation: 2005 – Taiwan, 2007 – Cayman Island • Registered Capital：NTD1,420.7M (approx. NTD1,279.5M before IPO) • IPO Date: 9th December 2013 • Total Number of Employees：309 • Business Scope： -LFP Cathode Material for Lithium Ion Battery -Electric Bus M
Slide 32: Taiwan Bus Operators Entitlement
Taiwan Bus Operators Entitlement Replacing 6200 City Bus with NTD 20 billion Subsidy But yet to be finalized by Legislative Yuan Item Amount Vehicle NTD 3.75 million per car Battery NTD 500,000 per car battery Charging Station NTD 1 million per car Route NTD 1 billion 32
Slide 33: Worldwide Patent Coverage
Worldwide Patent Coverage 98 Various Patents Developed In-House Materials, Process, Electric Vehicles and Battery-related Invention Patents 92 LFP and Material Patents Licensed Cover Dr. Goodenough Patent, Carbon Coating and High- Voltage Material Patents 33
Slide 34: IP Issue and International Market
IP Issue and International Market 1. Aleees filed 78 patents (31 granted, 47 pending) 2. Licensed 85 LFP cathode material patents from LiFePO4+C Licensing AG 1). Licensor including HQ、Sud-Chemie、 Montreal University、CNRS 2). Patent covers Dr. Goodenough’s (UT) patent、 Carbon-coating patent and high-
Slide 35: Sub-Licensing, LiFePO4+C Licensing AG
Sub-Licensing, LiFePO4+C Licensing AG “LiFePO4+C” Licensees Time (year) Note Süd-Chemie AG (100% owner Merged by 1 2008 of Phostech Lithium, Canada) Clariant (2011) Industrial scale 2 Aleees (Cayman) 2011 July manufacturing 3 Tatung Fine Chemicals Co. 2011 July Taiwan Mitsui Engineering & 4 2011 Jul
Slide 36: LFP is Safe and Long-Life
LFP is Safe and Long-Life Lithium Ion Batteries LiFePO4 LiCoO2 LiMn2O4 LiNiO2 NMC Cathode LFP LCO LMO LNO NMC Materials Green? Y Y Y Y Y Patented? Y N N N N Operating <300℃ <180℃ <180℃ <180℃ <180℃ Temperature Energy Density 160 140-160 105-110 190 190-210 (mAh/g) (theo. 170) (theo. 275) (theo. 148)
Slide 37: Nominal vs. Usable Energy
Nominal vs. Usable Energy Source: A123 presentation (2009 AABC) 37 37
Slide 38: Solid and Long Term RD Investment
Solid and Long Term RD Investment 40~60% YoY Revenue Growth, with Solid RD Investment Year 2010 2011 2012 2013 3M2014 R&D Expenses (NT$000) 60,243 117,569 108,977 150,482 50,896 Revenue (NT$000) 282,124 453,506 653,251 577,069 120,819 R&D Exp as % of Rev 21% 26% 17% 26% 42% 38
Slide 39: Yearly P/L
Yearly P/L NTD ‘000 2010 2011 YoY 2012 YoY 2013 YoY Revenue 282,124 453,506 61% 653,251 44% 577,069 -12% COGS -227,561 -365,918 61% -440,852 20% -546,821 24% Gross Profit 54,563 87,588 61% 212,399 142% 30,248 -86% OPEX -193,306 -439,534 127% -399,375 -9% -435,578 9% OP Profit -138,743 -351,946 154%
Slide 40: Quarters P/L
Quarters P/L NTD ‘000 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 Revenue 102,100 204,131 146,527 124,311 120,819 COGS -78,127 -226,835 -119,533 -122,326 -118,848 Gross Profit 23,973 -22,704 26,994 1,985 1,971 OPEX -93,016 -104,473 -113,746 -124,343 -124,412 OP Profit -69,044 -127,177 -86,752 -122,357 -122,4