Slide 1: EnSync, Inc.
EnSync, Inc. September 2016 < se ‘ ~~ EnSync ENERGY SYSTEMS
Slide 2: Forward Looking Statements
Forward Looking Statements THIS PRESENTATION INCLUDES FORWARD-LOOKING STATEMENTS THAT ARE MADE PURSUANT TO THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIF
Slide 3: EnSync Energy
EnSync Energy Distributed Energy Generation Systems and Services Company Distributed Energy Resource to Utility Connectivity High-Performance Energy Storage Systems Distributed Energy Systems from Design through O&M 3
Slide 4: Market Opportunity
Market Opportunity
Slide 5: So What's the Problem? Risk of Loss of ITC Drives Pull-ins
So What’s the Problem? Risk of Loss of ITC Drives “Pull-ins” Return to Growth Trend Line The Solar Market is Booming30% ITC Extended through 2019 – Will Continue to Stimulate Growth 5
Slide 6: Drivers for Energy Storage and Solar + Storage
Drivers for Energy Storage and Solar + StorageDifferent Drivers and Motivations for Different Segments Utility Segment Government Driven Policies to Replace Carbon Emitting Energy Sources with Renewable SourcesResult: Intermittent Generation Replacing Stable Generation; storage can smooth intermitte
Slide 7: C&I and Residential Solar Growth Cannot Continue without Storage
C & I and Residential Solar Growth Cannot Continue without StorageNet-Metering Curtailment, Time of Use Rates and Demand Charges will Create Market Inflection for Storage ? 7
Slide 8: Solar Penetration Creating Grid Problems
Solar Penetration Creating Grid Problems Hawaii Must Eliminate or Reduce Net-Metering 8
Slide 9: Policy Changes Drive Self-Generation and Solar + Storage Market Growth
Policy Changes Drive Self-Generation and Solar + Storage Market Growth in USAMarket for C&I and Residential Solar + Storage Systems will be at Least $1.0B Annually by 2018 Source: GTM 9
Slide 10: EnSync Differentiated Products and Services
EnSync Differentiated Products and Services Leading Technology for Distributed Energy Generation Market Applications and systems expertise, from economic modeling to system design to deploymentProprietary “Auto-Sync” DC-Bus Control architecture for more efficient, cost effective and “future-proof” s
Slide 11: A Series of Industry Firsts in Innovation and Commercialization
A Series of Industry Firsts in Innovation and Commercialization First deployment of integrated, concurrently controlled “hybrid” energy storage systems “behind the meter”First sale of a “behind the meter” solar plus storage PPA to a 3rd party investor, in Hawaii (and likely the entire United States)
Slide 12: Battery Portfolio and Hybrid Storage
Battery Portfolio and Hybrid Storage
Slide 13: EnSync Energy Storage Solutions Portfolio
EnSync Energy Storage Solutions Portfolio Modular and Scalable – Small C&I to Large Utility 13 Flow Batteries4-8 Hrs. Energy Applications Li Ion Power Batteries0-30 Min. Power Applications Li Ion Energy Batteries2-3 Hrs. Energy Applications Aqueous Batteries>8 Hr. Low Load, Energy Applications
Slide 14: C&I Solar + Storage Projects Have Many Possible Applications
C&I Solar + Storage Projects Have Many Possible ApplicationsValue of ESS System Maximized by Doing Multiple Applications Income Opportunity DG Electricity Sales Renewable Smoothing DR Revenues Ancillary Services Market DSM/DR Up/Down Flexibility Access Higher PPA Prices Volt/Var Support Frequency Re
Slide 15: EnSync Storage Portfolio Covers All C&I Applications
EnSync Storage Portfolio Covers All C&I Applications Enables All Applications to be Economically Addressed Source: EnSync, SEIA, GTM Flow Battery, ≥ 4 Hrs.“Energy” Use Cases Li Ion Power Battery, <30 Min. Use Cases Li Ion Energy Battery, 1-3 Hrs. Use Cases Discharge Duration Power Quality Freq. Reg.
Slide 16: Hybrid Energy Storage Systems for C&I & Microgrids
Hybrid Energy Storage Systems for C&I & MicrogridsEnSync Pioneered Commercialized Hybrid Energy Storage Solutions Proprietary Hybrid Control Platform, Utilizing EnSync Auto-Sync DC-BusNo Central Controller RequiredMultiple Technologies Hybridized to Deliver Best Possible EconomicsAny Set of Applicat
Slide 17: Matrix Energy Management System and Auto-Sync DC-Bus Control Platform
Matrix Energy Management System and Auto-Sync DC-Bus Control Platform
Slide 18: Matrix Energy Management Platform
Matrix Energy Management PlatformFully Differentiated C&I and Microgrid Solution Plug and play DC-AC and DC-DC “drawers” enable configuration for any building specific load, PV system, storage technology and storage size. Proprietary “Auto-Sync” DC-Bus Control PlatformActive prioritization of grid,
Slide 19: Matrix Energy Management System Synchronizes Load, Generation and Grid
Matrix Energy Management System Synchronizes the Load, Distributed Generation and Utility Grid through the Proprietary “Auto-Sync DC-Bus” Control Platform Highest efficiencyBest economicsModular and Scalable Matrix Energy Management System 19
Slide 20: Matrix Energy Management Platform Significant Advantages Over Competition
Matrix Energy Management Platform Significant Advantages Over Competition Function or Application EnSync Matrix Product A Product B Active Energy Synchronization for any or all DC and AC Inputs and Outputs without System Controller / Complex Algorithms ✔ Can manage every power and energy storage app
Slide 21: Transformation of EnSync Energy
Transformation of EnSync Energy BatterySalesTechnology dates to 1980’s (Exxon) and 1990’s (Johnson Controls) Integrated System SalesUtility Storage and Energy Management SystemsCommercial and Industrial Building Energy Management and Storage SystemsService Contracts ElectricitySalesPower Purchase Ag
Slide 22: Distributed Energy Resource (DER) to Utility Marketplace
Distributed Energy Resource (DER) to Utility MarketplaceEnSync Delivers the Total Solution for the Energy Market of the Future Matrix Energy Management DER to Utility Marketplace Energy Storage System Internet of Energy “IOE” Control Platform EnSync Provides Fully Differentiated Solutions for All Th
Slide 23: EnSync Internet of Energy Platform
EnSync “Internet of Energy” PlatformEnables DER to Utility and ISO Marketplace C&I Building Energy Markets Access EnSync “IOE” Control Platform 23
Slide 24: EnSync Internet of Energy Platform Compatibility
EnSync Internet of Energy PlatformCompatible with all Major Hardware and OS Platforms Multiplatform support SmartphoneTablet DesktopOperating Systems IOS / Android OSX / Windows / Linux Communications EnvironmentsEthernet Cellular WiFi SCADA 24
Slide 25: EnSync Energy to Demonstrate Harnessing Distributed Energy Resources
25 EnSync Energy to Demonstrate Harnessing Distributed Energy Resources for Grid Support and Ancillary Services at Intersolar Ability to Utilize Customer-Sited Renewables and Storage Provides Big Benefits to Utilities, Asset Owners and Utility Customers For Release: June 22, 2016 MILWAUKEE, WI-(Mark
Slide 26: Real-Time Dispatch Locational Marginal Price Utilized to Trigger Buying and Selling
Real-Time Dispatch Locational Marginal Price Utilized to Trigger Buying and Selling 26
Slide 27: Business and Financials
Business and Financials
Slide 28: Current EnSync Business Overview
Current EnSync Business Overview Current Hawaii PPA ProjectsEnSync Tranche 1: Seven of eight projects included in the initial Hawaii tranche have been transacted (sale or sale-leaseback). One additional project in backlog.EnSync Tranche 2: Four contracts closed. Additional opportunities being worked
Slide 29: EnSync Sells First Ever PV + Storage C&I PPA's
EnSync Sells First Ever PV + Storage C&I PPA’s 29
Slide 30: Pioneer of PPA's for PV + Storage in C&I
Pioneer of PPA’s for PV + Storage in C&IElectricity spending reduced by >$2 million over 20 year term Century West Condominium: Oahu, Hawaii Multi-tenant CondominiumConfiguration:400kW of Carport PV; 460kWh EnSync Hybrid Energy StorageEnSync Energy Management SystemFirst behind the meter PV + Storag
Slide 31: EnSync also Targets PV-only Projects
EnSync also Targets “PV-only” Projects Simple Process to Add Energy Storage at a Future Date EnSync also developing projects with PV onlyInstall Matrix Energy Management System to integrate the PV with the building loadStorage can be added at a later date through a simple upgradeTypical projects in
Slide 32: OATI: Connecting the Utility to the Distributed Generation
OATI (Open Access Technology International)Connecting the Utility to the Distributed Generation Located in Bloomington, MinnesotaMatrix Energy Management System and Agile Hybrid Energy Storage incorporated into the OATI Microgrid Demonstration and Data CenterMatrix is a vital part of OATI’s utility
Slide 33: Off-Grid Commercial Complex: Cayman Island Technology Center
Off-Grid Commercial ComplexCayman Island Technology Center Cayman Technology Centre (CTC) in the Cayman Islands, a >30,000m2 mixed commercial and office complexAdvanced energy management and energy storage system for the largest "off-grid" renewable energy installation in the Cayman IslandsOff-Grid
Slide 34: Assembly Line at EnSync China JV Facility
Assembly Line at EnSync China JV FacilityMeineng Energy in Wuhu City, Anhui Provence Agile Flow Batteries in Build Matrix Production Area Utility ESS Module 34
Slide 35: Experienced Management Team
Experienced Management Team Brad HansenCEO, President & DirectorApplied Materials, Boeing, Meineng Energy Kevin DennisVice President of Engineering& Product DevelopmentABB Fred VaskeVice President ofStructured FinanceSunpower, Recurrent Energy Sherry XiaVice President ofAsia Business and OperationsD
Slide 36: Selected Balance Sheet Data
Selected Balance Sheet DataAs of June 30, 2016 ($ in Millions, except per share) As of 6/30/2016 Cash and cash equivalents * $17.2 Project Assets** $6.9 Inventory $1.9 Total assets $34.3 Deferred revenue $13.3 Bank loans and notes payable, net of current maturities $1.4 Total shareholders’ equity $1
Slide 37: PPA Model Tranche Results
PPA Model Tranche 1 ResultsSummary to Date (5) Projects Sold to AEP Onsite Partners(1) Project Completed a “Sale-Leaseback” with a Renewable Energy Services Company(1) Project Sold to Hawaii InvestorSale of (1) Project in ProcessOperations and Maintenance (O&M) Agreements in Place: >$25K per year in
Slide 38: PPA Financial Model Going Forward
PPA Financial Model Going ForwardChanges from Tranche 1 Significant cost reductions are forecasted as we move into the second project tranche>35% reduction in PV Engineering, Procurement, Build (EPC) costs>20% reduction in Energy Storage costsReduced configuration expense due to 20ft. Container “Sup
Slide 39: Company Financial Model
Company Financial ModelTargeted Performance Q1’17 (Current Quarter) Revenue:Operational Break Even: PPA Tranches in FY2017:PPA Gross Profit Target: Systems Business Gross Profit Target: Op Ex (Cash Expense Burn Rate):Headcount: 39 $7.3M or HigherCash flow break-even run rate at end of calendar year
Slide 40: Synchronization. The game changer in energy technology
Synchronization. The game changer in energy technology <i