Polar Power, Inc. · NASDAQ:POLA
Polar Power — IPO Roadshow (November 2016)
33 slides from Polar Power's IPO roadshow presentation, Nov 18, 2016
Slide 1: Investor Presentation
1 Investor Presentation Filed Pursuant to Rule 433 Registration No. 333 - 213572 November 18, 2016 © 2016 Polar Power, Inc. All Rights Reserved. All photos in this document are from actual sites / applications with Polar Power, Inc . products installed . Polar does not provide the platforms, radios,
Slide 2: Free Writing Prospectus Statement
2 This presentation highlights basic information about us and the proposed public offering. Because this presentation is a summ ary , it does not contain all of the information you should consider before investing in our securities. We have filed a registration statement (including a preliminary pro
Slide 3: Safe Harbor
3 The following discussion, in addition to the other information contained in this presentation, should be considered carefully in evaluating our prospects . This presentation (including without limitation the following factors that may affect operating results) contains forward - looking statements
Slide 4: Offering Summary
4 Offering Summary Issuer Polar Power Inc. Type of Offering Initial Public Offering Joint Book - Running Managers Roth Capital Partners & Joseph Gunnar & Co. Co - Manager Feltl and Company Expected Offering Price $7.00 - $8.00 Offering Size 2,000,000 shares Pre/Post Shares Outstanding 7,383,158 / 9,
Slide 5: Key Management
5 Key Management ARTHUR D. SAMS LUIS ZAVALA RAJ MASINA B. SAMRA CEO and President Acting CFO VP Operations Corporate VP • Since 1991, has served as our President, Chief Executive Officer and Chairman of our board of directors. • In his career, has worked as a c onsultant to numerous Fortune 500 comp
Slide 6: Corporate Overview
6 Corporate Overview Founded in 1979, we design, manufacture and sell direct current, or DC, power systems for applications in: • Telecommunication • Military • Electric vehicle charging Our Core Technologies and Capabilities include : • Energy conversion • Digital control systems • Cooling systems
Slide 7: Investment Highlights
7 Investment Highlights Broad Market Opportunities In Telecommunications, Distributed Power, Cogeneration, Military, Electric Vehicle Charging & Uninterruptible Power Supply (UPS) • Multi - billion dollar opportunity with multiple applications within multiple markets • Top - tier customer base inclu
Slide 8: Financial Highlights
8 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Net Sales 2015 - 2016 Net Sales $ ,000 CAGR = 274% 2,500 7,500 12,500 17,500 2014 2015 2016 Net Sales 5,201 6,846 15,525 9 months 1,000 3,000 5,000 7,000 2014 2015 2016 Gro
Slide 9: Market Opportunity
9 Market Opportunity . Telecom Military Automotive Industrial Marine and RV Remote and Distributed Power POLAR POWER SOLUTIONS Oil Field and Mining UPS + Prime Power Data Centers Battery Systems UPS + Prime Power Battery Systems Cogeneration Series Hybrid Electric drives UPS + Prime Power Data Cente
Slide 10: Customers
10 Customers Telecom Military Others
Slide 11: Our Market Focus is in Telecommunications
11 Our Market Focus is in Telecommunications 1980s LAUNCH 1990s FIELD TRAILS 2010s ACCEPTANCE Polar began providing backup power systems / UPS Polar starts providing solar PV charge controllers for microwave communications Polar starts manufacturing its DC power systems, debugging its prime power an
Slide 12: Why the Change to DC?
12 Why the Change to DC? Solid state electronics need DC power, not AC power AC was popular at cell sites because air - conditioning units needed large amounts of AC power. Over time, the ability of electronics to operate in wide temperature ranges, especially at higher temperatures, increased, ther
Slide 13: Why Telecoms Need Backup Power or UPS
13 Why Telecoms & Commercial Companies Need Backup Power or Uninterruptible Power Supply (UPS) • Mission - critical businesses can’t afford to be without power ‒ Data centers ‒ Financial institutions ‒ Hospitals • Results are lost revenue, customers and human safety • Telecoms – FCC requirement for
Slide 14: Hybrid Solar, Prime Power, Rental and Backup DC Generators
HYBRID SOLAR ENERGY SYSTEMS PRIMEPOWERSYSTEMS TEMPORARY POWERAND RENTAL BACKUP DC GENERATORS mb fuel wit for reliable and low cost power
Slide 15: Why Choose Polar Power
15 Why Choose Polar Power • Optimized core product technology over 20 years from both a cost and performance perspective and now deliver a turnkey system • Provide technical support for our customers including their: architecture and engineering (A&E), installers, commissioning, maintenance, local,
Slide 16: Why a Telecommunications Focus?
16 Why a Telecommunications Focus? Presently 4.7 billion unique mobile subscribers and 5.7 billion projected by 2020 Telecommunications companies worldwide will invest over $1.4 trillion in the construction of new cell towers and equipment upgrades by 2020 Reducing energy cost presents a major oppor
Slide 17: Trends: Key Drivers to Growth of Reliable Power Systems
17 Trends FCC regulatory change and wireless carriers revenue goals demand longer backup capacity at all cell sites triggered by Hurricane Katrina & Sandy Cell Phones are displacing land lines as primary means of communications. Now the same level of reliability is being demanded of cell phones Enha
Slide 18: DC Power System Models
18 Vertical DC Power System Open Frame DC Power System Horizontal DC Power System Primarily used for backup power systems Primarily used for prime power systems including solar hybrid Primarily used for prime power systems including solar hybrid • Very small footprint. • Diesel models include fuel t
Slide 19: Backup Power Systems On-Grid
19 Backup Power Systems On - Grid Advantages of DC Power Systems • With air - conditioning no longer required, during a power outage there is now the opportunity for smaller and more efficient DC power systems to provide backup power • Space is at a very high premium on the cell site. Polar’s DC pow
Slide 20: Prime Power Systems Off-Grid Sites
20 Prime Power Systems Off - Grid Sites • Fuel saving has been the most important reason for choosing Polar DC power systems. We can reduce fuel savings significantly over typical AC installations • Our DC hybrid systems reduce field maintenance and refueling from 1 to 4 times a month for traditiona
Slide 21: Supra Digital Control System
21 Supra Digital Control System Remote Control and Monitoring Improves Reliability and Lowers Maintenance Cost PROPRIETARY DIGITAL CONTROL SYSTEM Supra Control System Integrates: ▪ Proprietary technology developed and manufactured in house ▪ Remote monitoring & control ▪ Complete alternator & engine
Slide 22: Remote Control and Monitoring Improves Reliability
22 • Remote monitoring and control of sites from anywhere in the world • Reduces maintenance costs • Improves reliability • Foundation for Rental / Micro - Utility / OPEX • Designed to support 99.9% network up - time • Polar’s Hybrid system can reduce fuel costs • Combines a low CAPEX fuel energy so
Slide 23: Growth Strategy
23 Growth Strategy Further develop U.S. mobile telecommunications market • During the last 3 years, we achieved significant success in selling our DC power systems to large wireless companies • Product approval from the big 3 wireless carriers in the USA • Further expand our sales, manufacturing and
Slide 24: Key Steps to Expanding our Telecom Sales
24 Key Steps to Expanding our Telecom Sales Add Additional Sales Personnel • We have 1 fulltime sales person on the road with 6 supporting staff, that support $15.5 million in sales for 9 months ended September 30, 2016 • Recently hired 2 senior level sales directors • Now we are focused on hiring s
Slide 25: Rental Model / OPEX Model
25 Rental Model / OPEX Model Off - Grid (Prime Power) Grid Connected (Backup Power) Market • Over 10,000 sites in the U.S. • Indian telecom market • Over 325,000 sites in the U.S. • Australia, Europe Products Solar DC Hybrid DC backup systems Customers 1,000 small and medium telecoms in the U.S. 1,0
Slide 26: Potential Global Markets
26 Potential Global Markets • Estimates indicate that by 2020 the global telecom industry will deploy approximately 390,000 telecom towers that are off - grid, and 790,000 that are in a bad - grid locations • More than 90% of all current off - grid and bad - grid towers use AC diesel generators, whi
Slide 27: Potential Global Target Markets
27 Potential Global Target Markets Australia • Australia’s large continent with remote and urban areas makes it an ideal market for our DC Solar hybrid and Backup systems • During 2013 and 2014, we shipped $1.7 million of DC hybrid power systems for use in remote areas by two of the largest telecom
Slide 28: Financial Highlights and Growth
28 ▪ Gross margin growth from 35% in 2015 to 41% in 2016 resulting from improved manufacturing efficiency and improved factory utilization ▪ High growth during past 24 months with annual CAGR of 274% profitable growth ▪ Direct sales model and service increasing revenue per unit for two consecutive y
Slide 29: Financial Review 2014-2016
29 Financial Review | 2014 – 2016 ▪ Sales growth of 254% for the nine month period ending September 30, 2016 compared to September 30, 2015 ▪ Earnings per share $0.37 for the nine month period ending September 30, 2016 due to higher gross margins and lower operating expenses ▪ Strong backlog of over
Slide 30: Balance Sheet
30 Balance Sheet $2,190 $3,946 $9,038 $434 $542 $783 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2014 2015 2016 Cur Assets PP&E Deposits Def. Tax $1,514 $2,400 $5,192 $1,167 $2,248 $2,286 $38 $5 $2,725 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2014 2015 2016 Cur Liabilities LT Liability Stoc
Slide 31: Pre-IPO Capitalization Table
31 Pre - IPO Capitalization Table Class Number Percentage Common Shares - Directors and Executive Officers* 6,197,476 84% Common Shares - Others 1,185,682 16% Warrants 0 0% Options 0 0% Total 7,383,158 100% ▪ $55.4 million pre - offering valuation, at the midpoint of the expected offering range * 5,
Slide 32: Summary of Strengths
32 ▪ History of innovation and investments in new products and proprietary technologies. ▪ 88% of current sales driven by new products launched since 2006 ▪ Robust product pipeline focusing on renewable energy solutions for off - grid applications ▪ Moved to Gardena (14 miles from LAX) in early 2015
Slide 33: Contact Us
33 Contact Us investor@polarpower.com +1 310 830 9153 www.polarpower.com 249 E. Gardena Blvd. Gardena, CA