Ess Tech, Inc. · NYSE:GWH
Ess Tech — ESS — SPAC Merger (June 2021)
26 slides from Ess Tech's SPAC merger presentation, Jun 16, 2021
Slide 1: Long Duration Energy Storage Systems for a Cleaner Future
Long Duration Energy Storage Systems for a Cleaner Future JUNE 2021
Slide 2: Disclaimers
Disclaimers This is for presentation discussion purposes (this “Presentation”) only and does was not prepared constitute for an informational offer to purchase purposes nor only a solicitation to assist interested of an offer parties to sell in shares making of ACON, their own ESS evaluation or any
Slide 3: Game Changing Technology: The Power Grid of the Future Feasible Today
Game Changin Technology The Power Grid of the Futur Feasible Today STABLE. SECURE. CLEAN.
Slide 4: Transaction Overview
Transaction Overview Category Catalyst in Long Duration Energy Storage Solutions ESS Founded in 2011 to enable the stable, decentralized and decarbonized power grid of the future Offering Size ACON S2 (NASDAQ: STWO): a special purpose acquisition company $250 million cash in trust PIPE size of $250
Slide 5: ESS: A Category Defining Investment Opportunity
ESS: A Category Defining Investment Opportunity 1 Large and Fast-Growing TAM: ~$56bn by 2027 growing at a 33% CAGR1 2 Simple Yet Revolutionary Technology: Iron, salt and water; strong patent portfolio 3 Compelling Value Proposition: Highest performance, lowest cost2 and most sustainable 4 Low Risk E
Slide 6: Market Opportunity
Market Opportunity CONFIDENTIAL 5
Slide 7: What Is Long Duration Storage?
What Is Long Duration Storage? Shift Supply to Meet Low Cost to Enable Replacement of Alternatives Reliable Demand from 4 – 12 Hours (Peaker Plants) (Grid Stability) 6
Slide 8: ESS Transforms the Value Proposition for Long Duration Storage
ESS Transforms the Value Proposition for Long Duration Storage How ESS Transforms the Grid ï,§ Can replace coal and natural gas with solar and Longer Durationï,§ Up to 12 hours wind powerï,§ Flexibility allows multiple revenue streams Greater resiliency to unexpected ï,§ events Lower ï,§ Step functi
Slide 9: Strong and Growing Demand for Energy Storage
Strong and Growing Demand for Energy Storage Cumulative Additions to Global Storage Capacity (GWh) Global Total Addressable Market ($bn) Front of the meter +43% Front of the meter 534 CAGR +33% CAGR $56 397 $46 301 +44% +32% CAGR $39 $28 CAGR 287 $33 $22 226 $27 $19 199 $22 168 $18 13 $17 $15 130 +3
Slide 10: ESS Wins on Performance
ESS Wins on Performance Operational 4-12 hrs 16+ hrs Flexibility Li-Ion <4 hrs Compelling Performance Longer Asset Life Unlimited cycles, no capacity loss Li-Ion 6,000 cycles1 Ambient Superior Operating -10°C- 60°C Temperature Li-Ion 20-25°C Safety Non-flammable No Explosion Risk Li-Ion 1 Li-Ion cyc
Slide 11: ESS Wins on Performance (image)
Operational ESS Flexibility Lion Longer Asset Life ol Liston Superior Ambient . Operating fs Temperature Liston ess- Liston 16+ hrs <4hes 6,000 cycles! 20-25°C Non-flammable No Explosion Risk 4 * Compelling Performance
Slide 12: ESS is a Category Defining Technology for Long Duration Storage
ESS is a Category Defining Technology for Long Duration Storage Li-Ion Li Metal Zinc Vanadium, Bromine Sodium Sulfur Compressed Air Pumped Hydro Low 4 – 12 cost hours at Field proven1 materials Earth abundant Unlimited cycling Zero capacity fade Wide temperature operational range sustainable Environ
Slide 13: ESS Technology is Proven and Insured
ESS Technology is Proven and Insured Munich RE Aon One Insurance Beacon Investment-Grade 10-year extended Surety and Corporate Bonding Warranty warranty covering battery modules Growing project surety capacity Investment-Grade Warranty continuity Project Insurance insurance provides additional suret
Slide 14: ESS Technology is Proven and Insured (image)
ESS Technology is Proven and Insur. ed @ESS™ Investment-Grade 10-year extended Warranty warranty covering battery modules Investment-Grade — Warranty continuity Project Insurance —_insu'ance provides additional surety to customers and financiers “The ability to ensure battery performance is a key pi
Slide 15: Technological Breakthrough, Field Proven and Shipping Now
Technological Breakthrough, Field Proven and Shipping Now breakthrough Technological – R&D roadmap for Iron Flow first conceived But “dirty” electrolyte Field proven1; S200 additional breakthroughs in 1970s caused rapid degradation power Proton fade Pump and eliminates limits on shipping now to exte
Slide 16: Robust Intellectual Property Portfolio
Robust Intellectual Property Portfolio ESS Critical Technology ESS IP Portfolio (-) (+) Power Module Electrode Electrode Collector Current Proton Pump Pressure Plate Conductive Separator Separator Porous Electrolyte protected = Patent CONFIDENTIAL 16
Slide 17: Business Overview
Business Overview CONFIDENTIAL 17
Slide 18: One Technology – Two Products of Different Scale
One Technology – Two Products of Different Scale Energy Warehouse™ Energy Center™ ï,§ Behind the meter solutionï,§ Front of the meter solutionï,§ 50kW – 90kW configurable rangeï,§ Customizable configuration rangeï,§ First commercial deployment in 2015ï,§ Customer trials starting in 2021ï,§ Generatio
Slide 19: Validated by a Blue-Chip Customer Base
Validated by a Blue-Chip Customer Base Utilities IPPs/Developers Commercial & Industrial EW EC EW EC EW EC ï,§ Peaker replacementsï,§ Peaker replacementsï,§ Energy cost savings Demand ï,§ T&D upgrade deferralsï,§ Resource adequacy & grid reliabilityï,§ Operational resiliency Driversï,§ Wildfire resi
Slide 20: Financial Forecast
Financial Forecast CONFIDENTIAL 20
Slide 21: ESS' Robust Revenue Growth
ESS’ Robust Revenue Growth Projected Revenue by Product Offering ($in millions) $3,562 ï,§ Growth Center deployments accelerates as start Energy in EC EW EF Services 2023 $2,572 ï,§ Forecast driven by identified pipeline of near-term opportunities $1,645 ï,§ ESS expansion into Australia (2023) and E
Slide 22: ESS Delivers Compelling Profitability
ESS Delivers Compelling Profitability Projected Gross Margin ($in millions) Projected EBITDA ($in millions) $1,332 $1,059 $950 $739 $508 $360 $217 $131 ($2) ($13) $47 ($20) ($43) $2 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 16% 27% 31% 37% 37% 1% 16% 22% 29%
Slide 23: Potential Upside to Business Plan
Potential Upside to Business Plan decarbonization New US federal and and state national policies security on infrastructure, Emerging on decarbonization mandates and in EU storage and Asia-Pacific and Demand World impact Bank of targets USTDA, Power Africa, UNDP Further economies of scale and techno
Slide 24: Valuation Overview
Valuation Overview CONFIDENTIAL 24
Slide 25: Detailed Transaction Overview
Detailed Transaction Overview ($ in millions, except per share data; shares in millions) ï,§ Pro forma enterprise value of $1,072 million (0.7x 2025E Revenue) Total Enterprise Value Summary Pro forma shares outstanding 156.5 ï,§ $465 million cash proceeds inclusive of $250 million PIPE proceeds (x)
Slide 26: Stabilize the Grid and Accelerate Renewables
Stabilize the Grid and Accelerate Renewables US Renewable Energy Penetration (2015-2050)1 57% 65% 47% 36% 40% Renewable intermittency creates a 31% 23% massive problem for the grid, 15% particularly >25% penetration 2015 2020 2025 2030 2035 2040 2045 2050 California Duck Curve and % Renewable Penetr