Slide 1: Configurable, Modular, and Scalable for Continuous and Reliable Energy
Filed Pursuant to Rule 433 Registration Number 333-179541 May 9, 2012 Configurable, Modular, and Scalable for Continuous and Reliable Energy On-grid... off-grid... and as grid backup Baird Growth Conference
Slide 2: Forward Looking Statements
Forward Looking Statements THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC
Slide 3: Key Stats: ZBB (NYSE AMEX)
Key Stats: ZBB (NYSE AMEX) Stock Data: ZBB (NYSE AMEX) Stock price (5/7/12) $0.51/$1.26 Avg. Daily Vol. (3 mo.) 85,769 Shares Outstanding 41.1M Public Float 35.3M Market Cap $20.9M Enterprise Value $31.9M Institutional Ownership 8.9% Financial Highlights Total Revenues (ttm) $5.1M Net income (loss)
Slide 4: Who We Are
Who We Are Modular electronics and storage enable factory architected solution to any customer power problem Plug & Play Operation with any power source, grid condition or storage type Patented technology enables intelligent harvesting of all available value streams for fast ROI Reduces energy costs
Slide 5: Problem #1: Unstable/Congested Grid
Problem #1: Unstable/Congested Grid Rise of distributed solar and wind generation creating uncontrolled power flow problems Some utilities are already limiting distributed renewable generation due to overload conditions on distribution network Some utilities are already curtailing renewable generati
Slide 6: Solution: Networked Smart Storage with ZBB EnerSystem
Solution: Networked Smart Storage with ZBB EnerSystem Enables greater use & diversity of renewable energy sources by managing intermittency Provides a network of reserve capacity Avoids demand charges by clipping demand peaks Avoids turning loads off due to Demand Response Lowers peak rates by time
Slide 7: Problem #2: No Grid Available
Problem # 2: No Grid Available Market Opportunity 1.4 billion people have no electricity Billions of people depend on diesel fuel to cover long grid outages Fuel for electrical generation costs the military billions of dollars and many lives Telecom depends on diesel fuel & lead acid Problems Diesel
Slide 8: Mega-Trend Market Opportunity
Mega-Trend Market Opportunity Renewable energy shifting shows greatest potential, snatching up to $61B or 54% of global demand in 2017 * * Source: Lux Research March, 2012
Slide 9: Major Market Driver: Increasing Global Use of Solar Power
Major Market Driver: Increasing Global Use of Solar Power Distributed Solar Power Capacity Continues to Climb Due to: Decreasing cost to deploy & maintain * Supportive environmental laws and mandates State & federal incentives Increase in cost of diesel fuel Migration away from nuclear power Distrib
Slide 10: Major Market Driver: Microgrid & Remote/Off Grid Market
Major Market Driver: Microgrid & Remote/Off Grid Market A microgrid is a small-scale version of the traditional electricity grid Microgrids can be networked to one another and the central grid in order to boost capacity, efficiency and reliability They can function as autonomous islands of power dur
Slide 11: ZBB EnerSystem Power and Energy Management Platform
ZBB EnerSystem Power and Energy Management Platform The ZBB EnerSystem is a seamless integration of smart power electronics and energy storage Modular design allows configuration to customer needs; on-grid, off-grid and/or as grid-backup The ZBB EnerSystem enables simultaneous money saving operation
Slide 12: ZBB EnerSection Power & Energy Control Center
ZBB EnerSection Power & Energy Control Center ZBB EnerSection is the heart of the system a Cisco Router for power AC and DC circuits can simultaneously be coming in and being fed outmaking it a microgrid-in-a-box Patented common DC bus allows power to flow between all connected devices and feed AC i
Slide 13: Cost Comparison: Renewable Integration with Storage & Grid
Cost Comparison: Renewable Integration with Storage & Grid ZBB System Advantages vs. Conventional Architecture: Plug & Play 49% less expensive than conventional project cost* Common components Single Point-of-Connection to Grid Specification testing prior to delivery Common software Factory tested a
Slide 14: ZBB EnerStore Energy Storage System
ZBB EnerStore Energy Storage System ZBB EnerStore uses innovative ZBB Zinc-bromide flow batteries Lowest cost of ownership solution for renewable energy installations Wide temperature range 1-8 hour discharges are strong suit 5x volumetric energy density of vanadium flow batteries Cost less than Li-
Slide 15: Cost Saving of Flow Batteries Compared to Lead Acid (VRLA)
Cost Saving of Flow Batteries Compared to Lead Acid (VRLA) Lead acid batteries are about five times (5X) the lifetime OPEX replacement parts vs. flow batteries Lead acid batteries typically have more than two times (2X) the service costs over its lifetime Flow batteries can save $600,000 over a 20 y
Slide 16: Target Market by Application
Target Market by Application Microgrids: Ensure consistent and reliable power in environments that are often unstable and rely on generators for a significant portion of their power Commercial Buildings: Eliminate or minimize the use of diesel generators and lead-acid batteries for back-up power, an
Slide 17: ZBB Projects - Spring 2012
ZBB Projects - Spring 2012 United States Oregon State Calif. Public Utility Comm. NAVFAC/SEI (So. Calif.) NAVFAC/SNI (So. Calif.) General Atomics (So. Calif.) Major Sports Stadium (Arizona) Military - Undisclosed (Texas) Eaton/Ft Sill (Oklahoma) Lower Valley (Wyoming) DoD/Transportable (Wisconsin) U
Slide 18: Remote Grid Project Example: US Military
Remote Grid Project Example: US Military Awarded Fort Sill microgrid 500kWh project with Eaton as partner Booked trailer mounted power system for forward operating applications Booked 1MWh system for NAVFAC (Naval Facilities Engineering Command) Booked transportable system for Army Booked Pearl Harb
Slide 19: Data Center Example
Data Center Example ZBB EnerSystem works seamlessly with existing DC based UPS systems Integrates renewables, storage, grid input and DC output, included LED lighting Use of system during grid outages in place of diesel genset Provides stable supply of power, particularly from renewables >30% effici
Slide 20: Building Integration Example: Hawaii Mid-Rise Residential
Building Integration Example: Hawaii Mid-Rise Residential Power Systems Challenge Expensive ($0.28-0.33/kWh), unreliable electricity 4 hour daily peak rate Grid instability due to renewable saturation Emissions compliance & fuel costs make diesel back-up cost prohibitive 6000 elevator back-up system
Slide 21: China Joint Venture
China Joint Venture ZBB Energy holds 34% share and controls JV through Hong Kong holding company Began operation at the end of 2011 with $13.4 million in registered capital Partnered with PowerSav and two State Grid companies First twelve ZBB EnerStore systems in assembly and test May-July 2012 time
Slide 22: International Strategic Relationships
International Strategic Relationships Honam Petrochemical Corp. Honam is a $12 Billion division of the Lotte Group ($50 Billion in assets) Collaboration on cost reduction and ramp of V3 ZBB EnerStore battery Exclusive distribution in Korea, non exclusive in Japan, Taiwan, Malaysia, Singapore, Vietna
Slide 23: ZBB Operations
ZBB Operations 1 MWh ZBB EnerStore capacity per month (1 battery module per day) Increase to 1.5 MWH per month with proportional increase in direct labor workforce ZBB EnerSection assembly and test in ZBB facility 25 kW inverter ETL certified to UL 1741 60 & 125 kW inverters expected to be ETL certi
Slide 24: Product Sales Funnel & Backlog
Product Sales Funnel & Backlog Sales Funnel Market Segment Number of Opportunities Dollar Value Remote Grid 13 $12,369,998 Commercial Building 5 $ 1,438,253 Micro Grid 18 $13,316,234 Strategic Partner 4 $ 4,350,000 Other 15 $ 3,923,146 Total 55 $35,709,454 Backlog of 55+ ZBB EnerStores as May, 2012
Slide 25: ZBB Key Takeaways
ZBB Key Takeaways Addressing fast-growing, multi-billion dollar global market opportunity ZBB EnerSection is the Cisco Router of power management Smart storage solves distributed grid problems Strong IP position creates sustainable advantage Order backlog across target markets demonstrates product a
Slide 26: Contact Us
Contact Us Company Contact: Eric Apfelbach President & CEO eapfelbach@zbbenergy.com Office: (262) 253-9800 x 123 Mobile: (608) 576-7549 Investor Relations: Justin Vaicek Liolios Group, Inc. Tel (949) 574-3860 ZBB@liolios.com
Slide 27: Appendix Supplemental Materials
Appendix Supplemental Materials
Slide 28: ZBB at Inflection Point
ZBB at Inflection Point Two-year repositioning effort now being realized: Re-engineered products for leap frog capability, cost and ability to scale Targeted strategic design wins now leader in key segments, i.e., military Started shipments this quarter, with backlog at $6.2 million Reconstructed al
Slide 29: Cap Table May 8, 2012
Cap Table May 8, 2012 Shares/Amount Weighted Average Price Preferred stock $10,000 face value, Non-convertible, liquidatio preference of $6,283,517, preferred stockw ill be redeemed with Socius Notes receivable 575,128 Common stock outstanding 41,055,079 Warrants 41,177,177 $0.89 stock options 4,296
Slide 30: ZBB Shareholders 12/31/2011
ZBB Shareholders 12/31/2011 Name shares percent marathon capital management llc 4,858,651 11.83% ardsley advisory partners 2,817,831 6.86% vanguard group, Inc. 141,333 0.34% ICM asset management 121,075 0.29% vanguard extended market index fund 141,333 0.34% spartan extended market index fund 44,500
Slide 31: Board of Directors
Board of Directors Paul Koeppe Chairman of the Board Founder and CEO of Superconductivity, Inc. Past Director at Best Power and Northern Power; Director of inContact Eric Apfelbach Chief Executive Officer 11 years of CEO/ Board /governance experience Founder Alfalight Laser, Virent biofuels Richard