Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (January 2017)
36 slides from Cleanspark's investor presentation, Jan 24, 2017
Slide 1: CleanSpark Investor Presentation January 2017
CLEANSPARK, More than Power Ticker: CLSK Investor Presentation January 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation relating to plans, strategies, testing and operational performance, projections of results of specific activities and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Priva
Slide 3: Investor Highlights
Investor Highlights Developed a proprietary microgrid energy operating platform capable of managing complex power systems from the 4 kW to 10 MW range in real-time Microgrids 101 eons Advances Energy Storge @y | Wind Turbines ql G& ‘on Photovoltaics OTC: CLSK CleanSpark is at the forefront of the U.
Slide 4: Competitive Landscape
Company Competitive Landscape Dynamic Network Analysis _}[ Energy Operating Platform Differentlators Delivery Wholesale Market Interaction Systems Rate Intelligence Enabling Energy Sales nant, Automated Intelligence Scheduling of Identifying New] Demand Opportunities Management Certainty) fi ID) (B
Slide 5: Market Overview: Microgrids - Poised for Growth
Market Overview: Microgrids - Poised for Growth Total Global Microgrid Revenue ($ in billions) $50 $40 $30 $20 $10 $0 2014 2015 2016 2017 2018 2019 2020 Source: Navigant Consulting Global Microgrid Market. Mic: Enabling Technologies (MET): Est. $9 8B in 2014 and projected to exceed Worldwide investm
Slide 6: Market Trends Driving Tremendous Opportunity
Market Trends Driving Tremendous Opportunity CLEANSPARK, Opportunity Market Trends .. Traditional microgrids \ were expensive and used for backup power * Complex, custom integrations at a high cost * Single vendor solutions have limited competition and resulted in higher cost + Primary source of pas
Slide 7: Today's Grid: The Central Model Problem
Today’s Grid: The Central Model Problem * Central aging distribution, largely reliant on fossil fuel combustion * Increasing outages and interruptions due to complexity and increased number of threats * Ingrained interests disallow innovation in a time of rapid technological transformation * Baseloa
Slide 8: Our Solution: Flex Power System (FPS)
Our Solution: Flex Power System (FPS) Integrated microgrid software and control platform for plug-n-play microgrids Optimizes energy consumption ....... through efficiency and user interaction 1 ts / Grid Connected flex: Provides true energy and cyber security Integrates and autonomously controls ¢,
Slide 9: The Future Grid: An Intelligent Distributed Energy Resource Network
The Future Grid: An Intelligent Distributed Energy Resource Network G Residential and Multi-Family Customers Value Creating Products And Services * Optimization and Engineering Services Ensure The System Will Realize a Commercial and Industrial Customers (C&!) Maximum Value * Solar* Monitoring Uses
Slide 10: How We Make Money - Services
Segment Recurring Revenue OTC: CLSK How We Make Money - Services Evolving to deliver our energy enterprise software solutions (SaaS) Distributed Energy Resource mPulse Energy Operating Platform * Dynamic Network Analysis (DNA) izati Dynamic Network Analysis (DNA) engine running actively on all sites
Slide 11: How We Make Money - Turn Key Residential Solutions
How We Make Money - Turn Key Residential Solutions “opment eS [sir tserone | | Dynamic Network Analysis (DNA) engine * Permitting running actively on all sites offering * Procurement high-quality lead generation when * Installation ym expansion or * Warranty . Solart Intelligent Monitoring, Strategy
Slide 12: How We Make Money - Turn Key Microgrid Contracts
How We Make Money - Turn Key Microgrid Contracts + Dynamic Network Analysis (DNA) system optimization — Design, integration and installation in mPulse Energy Operating Platform sales partnership with Webcor builders + Heavy focus on anchor portfolio customers including MULTI-FAMILY Residential, Comm
Slide 13: Clean energy solutions at a cost less than centralized power
Producing sustainable, clean energy solutions at a cost less than centralized power that enables secure energy independence at long-term, predictable rates Tynicai|fiex' Powersystamipaybackand/savines Model Gow aoe t Energy Savings Energy Independence Based on +/- 50 proposals and optimized designs
Slide 14: Proprietary, Patented Technology
Proprietary, Patented Technology CleanSpark’s Stratean Gasifier technology and processes are capable of producing large volumes of clean, renewable energy from a carbon compound ——— Input ——— ——— Outputs ——— s Stratified Downdraft Gasifier MSW 0 Vea Po 8) 6) © Coal Sewage 0 Qe ©00 oO Synthesis Sludg
Slide 15: Products & Production Processes
Products & Production Processes * Capable of producing large volumes of clean, tented, parallel path refractory renewable, non-global Efficient operation, warming energy from ‘no further gas cleanup required any carbon compound into synthetic gas Feed Mate} * Product design como requires significant
Slide 16: Strategy: Multiple, Diverse Paths to Market
Strategy: Multiple, Diverse Paths to Market Large customers who place a Focus on portfolio partners, multi-tenant premium value on energy security properties and REITs Government, Military and Campus Commercial and Industrial Customers (C&l) Untapped market, Solar+ F Large scale deployment for wide
Slide 17: Path to Market: Government, Military and Campus
Path to Market: Government, Military and Campus Existing Relationships, Strong Demand Expected To Yield Near-Term Revenue Q1 2018- Expand Q1-Q3 2017- $4.5B Target Market Complete ongoing development with projects with USMC & Navy sinc SZ : z Primary targets include USMC, _S : he ‘ ; - Navy, hospital
Slide 18: Path to Market: Small and Medium Businesses
Path to Market: Small and Medium Businesses Initial Focus on Southern California Total Addressable Market Next Steps Expand presence In Southem California market . Increase sales team (Q2 2017) $500M California target market ¢ — Establish customer financing partners * Launch direct sales strategy in
Slide 19: Path to Market: Commercial and Industrial
Path to Market: Commercial and Industrial Portfolio Partner Strategy Q1 2017 Customer 2018-Roll out master planned engagement with REITs solution for multiple large REITs Q3 2017-Initial REIT Primary targets include REITs, multi- projects tenant properties and shopping centers Next Steps Projected A
Slide 20: Multiple Revenue Streams
Multiple Revenue Streams Evolving to deliver our energy enterprise software solutions (SaaS) eee a [__terawareimegton sais | ella Melia Energy Monitoring and Controls Maas, EaasS, Microgrid mization * Creating commercial market + Deploying products & training partners + Focus on anchor customers * D
Slide 21: Five Year Projections
Five Year Projections —— Revenue and Expenses — (on assumed units sold) ($ in millions) 2017 2018 2019 2020 m Revenue mExpense OTC: CLSK Assumptions Domestic application only . . 57 government or commercial ‘turnkey’ microgrid solutions developed . 64 microgrid design and engineering contracts over
Slide 22: Balance Sheet
Balance Sheet as of September 30, 2016 Total Assets $33,019,542 Total Liabilities | $357,424 Total Shareholders' Equity $32,662,121 Cash 436,529 88,533 Total Assets 33,019,542 817,399 Total Loan Debt 2,261 - Total Liabilities 355,160 55,440 Total Shareholders’ Equity 32,662,121 761,959 OTC: CLSK CLE
Slide 23: Experienced Management Team
OTC: CLSK Experienced Management Team S. Matthew Schultz, Chief Executive Officer, has been involved in many capacities with several publicly traded companies. Most recently, he served as the President and CEO of Amerigo Energy, Inc., creating multiple syndicated offerings of developmental oil produ
Slide 24: Board of Directors
OTC: CLSK Board of Directors Bruce L. Lybbert, Director, a seasoned veteran of the brokerage industry and Wall Street has served on the Board of Directors in several Companies in the public and Private sectors. Mr. Lybbert co-founded Tel America, Inc. in 1982, growing it into a successful communicat
Slide 25: Investor Highlights
Investor Highlights Developed a proprietary microgrid energy operating platform capable of managing complex power systems from the 4 kW to 10 MW range in real-time Microgrids 101 eons Advances Energy Storge @y | Wind Turbines ql G& ‘on Photovoltaics OTC: CLSK CleanSpark is at the forefront of the U.
Slide 26: Contact Details
Contact Details Company Contact Matt Schultz, CEO and President CleanSpark, Inc., Bountiful, UT Tel 801.244.4405 | matt@cleanspark.com www.cleanspark.com Investor Relations Brett Maas, Managing Partner Hayden IR Tel 646.536.7331 | brett@haydenir.com www.haydenir.com OTC: CLSK CLEANSPARK, 26
Slide 27: Appendix
CLEANSPARK, More than Power Ticker: CLSK Appendix
Slide 28: Background
Background CleanSpark was born from a simple, yet challenging mission set forth by the United States Navy and Marine Corps: - 100% sustainably renewable - 100% capacity factor - 100% reliability - 20+ year system life eget ? wv. September 2011, US Marine Corps Base Camp - Privately financed Pendleto
Slide 29: Building Out the Network
Building Out the Network Creating the pathway to the most efficient and capable power system architecture LOCAL CONTROL Microgrid oa Centers REGIONAL CONTROL NEOCORTEX: Provides regional situational awareness and command and control of a nested group of FractalHives, called the Fractal CLEANSPARK, O
Slide 30: Enabling End-to-End Autonomous Power
Enabling End-to-End Autonomous Power Integrating two technologies to position CleanSpark at the forefront of the U.S. microgrid market Clean, Renewable Energy Creation Efficient Energy Management Enabling True Energy Independence OTC: CLSK CLEANSPARK, 0
Slide 31: The Strategic Ecosystem
The Strategic Ecosystem Initial focus on anchor customers and established partners that own or have access to large portfolios for potential future projects * Rapid Scalability via established anchor customers (AIMCO, DoD, and Sungevity) * Creates a fully wrapped microgrid solution * Access to multi
Slide 32: Microgrids
Microgrids 101 Advanced Energy Storage = =,” Wind Turbines: CLEANSPARK, Energy Consumption e 4 Solar Photovoltaics Microgrids are a localized power system comprised of distributed generation assets, energy storage devices, and smart distribution technologies that can operate as a_ single, autonomous
Slide 33: Products & Services
Products & Services Creating long term, recurring revenue via O&M, software licensing and subscriptions “ a Products Services * — mPulse software + Design & Engineering Microgrid/DER opt. software | | Installation Microgrid controller/monitor * — Integration Microgrid enabling/control technologies *
Slide 34: CleanSpark's Solution: flex 2ex
CleanSpark’s Solution: flex 2ex Software & Controls platform enables DERs and 100% renewable microgrids in an affordable way — Optimizes energy consumption through efficiency and user interaction — Provides true energy and cyber security — Integrates and autonomously controls advanced energy storage
Slide 35: Customer and partner testimonials
“CleanSpark’s approach to connecting devices that fPS needs to control in the microgrid is one of the most practical, bold, and innovative methods to device integration witnessed in the industry.” — Southern California Edison ; ~ possible system architecture to control a multi-vendor=._ microgrid.”
Slide 36: Recognition
Recognition “Congratulations to you and the corps on this success. Commissioner Scott and | very much appreciate your team’s efforts and are interested to explore what needs to be done to support further. We are ready to help facilitate more microgrid projects in the market.” -DAVID HOCHSCHILD Commi