Ocean Power Technologies, Inc. · AMEX:OPTT
Ocean Power Technologies — Investor Presentation (February 2019)
40 slides from Ocean Power Technologies's investor presentation, Feb 22, 2019
Slide 1: Ocean Power Technologies, Inc. Investor Presentation
Ocean Power Technologies, Inc. Investor Presentation = February 2019 OPT OCEAN POWER TECHNOLOGIES
Slide 2: Forward Looking Statements
INVESTOR PRESENTATION FEBRUARY 2019 Forward Looking Statements In addition to historical information, this presentation contains forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by
Slide 3: About Ocean Power Technologies
About Ocean Power Technologies
Slide 4: Who We Are
INVESTOR PRESENTATION NET Ocean Power Technologies... Who We Are ““OPT is a manufacturer of distributed offshore power equipment which provides persistent, reliable and economical power and communications for remote offshore topside and subsea applications.” , OPT Target Markets - an Offshore Oil &
Slide 5: Quick Facts
INVESTOR PRESENTATION iss z02 Ocean Power Technologies... Quick Facts ¢ NASDAQ: OPTT * Market Cap: approx. $10M * TTM Revenue: approx. $400K* * Cash & Equivalents: $4.6M* * Organization: Over 40 employees including deep engineering capabilities ¢ Intellectual Property: Proprietary technology with ov
Slide 6: OPT Timeline
OPT Time | ine Distributed Power Grid Connected Wave Power * New Production Facility * Leadership Additions * Newcustomers * Neworders Brand recognition casink choses Gat Pn
Slide 7: Recent Highlights
INVESTOR PRESENTATION FeBRUARY 2029 Recent Highlights KKK New product developments and new technology patent awards and filings * Robust opportunity pipeline—$ millions proposals issued * Oil & gas customer PowerBuoy® delivery * Multiple PowerBuoy® builds to address demand “Se Added key senior leade
Slide 8: Customer Projects
INVESTOR PRESENTATION FEBRUARY 2019 ae Trae Customer Projects Eni S.p.A. 1% year lease 1% year extend option Purchase option Deployed in Adriatic Sea 9-month lease w/ext. option Purchase option Summer ‘19* ship Deploy in Central North Sea Chile feasibility study Nov.-Dec. ’18 evaluation Potential de
Slide 9: Go eeingoey
Go eeingoey ‘ fl
Slide 10: How Our Technology Works
Prime, Back-Up, and Temporary 30Ft. Electric Below Power waterline Heave Plate PT Persistent Power and Communications OCEAN POWER TECHNOLOGIES How Our Technology Works * Floating system... standard anchorage down to 3,000 meters * Submerged heave plate & spar... remain motionless in ocean waves ° Fl
Slide 11: PowerBuoy Market Value Proposition
PowerBuoy® Market Value Proposition Cost Savings and Operational Flexibility UO) Savings by eliminating vessels... “unmanned station” provides persistent power and communications OU) Increased safety... by allowing remote operations from shore QO) Faster operational decision-making... from real-time
Slide 12: Strategic Position
Strategic Position . - x
Slide 13: The Blue Economy — Our Total Addressable Market
The Blue Economy — Our Total Addressable Market Communications Wi-Fi and cellular $0.58 market
Slide 14: Offshore Oil & Gas
Offshore Oil & Gas Applications . Key drivers Improved site safety Moving roward and security ee : Fadi ; electrification ‘quipment Nis as monitoring and and digitization control >10,000 sites Communications require power Subsea battery charging Deep/ultra-deep waters means farther offshore Subsea r
Slide 15: Defense & Security Applications
Applications * Early warning systems and remote surveillance * Remote networks and communications * Subsea charging stations for AUV * Remote radar and sonar stations * Electro-optical and infrared sensors OPT OCEAN POWER TECHNOLOGIES Defense & Security Key drivers ° Surface threat detection Renewab
Slide 16: Science & Research Applications
Applications * Climate change * Weather forecasting * Ocean currents, waves, chemistry, and seismometry ° Fish and mammal migration * Environmental and biological monitoring OPT OCEAN POWER TECHNOLOGIES Science & Research IHOJOC GEBCO, NGS || Esn, GEBCO. D. Source: National Data Buoy Center website
Slide 17: Communications
Communications Applications Key drivers * Military/civilian remote Wi-Fi and cellular comms * Disaster recovery * Increasing big-data * Range extension and . requirements data relay stations * 4G offshore base i" ° Deep water stations . operations * Quick-deploy search and rescue ° Bandwidth * Migra
Slide 18: Strategy
Pe ofrategy ‘te r | . |
Slide 19: Offshore Oil & Gas - Example
Offshore Oil & Gas - Example Oil Field Decommissioning Market Segment OPT OCEAN POWER TECHNOLOGIES Offshore oil & gas production facilities to be decommissioned between 2018 to 2025*
Slide 20: Transaction Economics
Transaction Economics COMMUNICATION ANTENNAe, ‘SATELLITE TRACKER Base PowerBuoy® + Value-Added Engineering + Support Services * Sale or Lease * Packaged Options * Marine Services OPT * Customization * Remote Monitoring OCEAN POWER TECHNOLOGIES * Integration Services * Extended Service Agreements ..
Slide 21: Products and Services — Fully Commercial Today
INVESTOR PRESENTATION FEBRUARY 2019 Products and Services — Fully Commercial Today PB3 PowerBuoy® Long Deployments Customization Support Services Persistence Permanency Low Maintenance Renewable Packaged Options Engineering/Design Innovation/Testing Marine Services
Slide 22: Products and Services — Under Development
OR PRESENTATION VARY 2019 Products and Services — Under Development hybrid PowerBuoy® Shorter Deployments High Energy Storage Low Maintenance Modular / Scalable Subsea Battery Solutions * Shorter Deployments * Low Maintenance * Complements PowerBuoy® Anchorless PowerBuoy® Advanced Design Self Propel
Slide 23: Target Market Buying Process
9R PRESENTATIO Target Market Buying Process Revenue : Stream New/repeat customers, multiple PowerBuoy’ purchases revenue backlog generation Launch Customers Initial demonstration projects, rental/service revenues, “try before you buy” Proposals Budgetary estimates, technical proposals, contract nego
Slide 24: Our Management
Our Management va) x i. ~ .
Slide 25: Management Team — Experienced and Disciplined
INVESTOR PRESENTATION FEBRUARY 2019 Management Team — Experienced and Disciplined Executive Title Selected Experience & George H. Kirby Chief Executive Officer ‘AECOM SAIC. 4 amsc: tyco Matthew T. Shafer Chic Reiner eno tice One SH Catalent. yw VALEANT Sophisticated and engaged board of directors En
Slide 26: Financial Profile
INVESTOR PRESENTATION NE Financial Profile Selected Financial Informati in 000s) Balance Sheet (unaudited) 10/31/18 Total shares outstanding \*) 18,992,086 Cash, equivalents, restricted cash $4,556 % owned by directors & officers \) 21.7% Total current assets $5,863 Warrants outstanding 324,452 Prop
Slide 27: Investment Thesis
INVESTOR PRESENTATION iaiuoniz032 Investment Thesis ¢ Fully commercial and growing ¢ Innovative products and services ¢ Strong intellectual property portfolio ¢ Large and diverse addressable markets: >» Offshore Oil & Gas » Defense & Security » Science & Research » Telecommunications * Burgeoning de
Slide 28: Contacts
Contacts Matthew Shafer Porter, LeVay & Rose Chief Financial Officer & Treasurer Michael Porter, President mshafer@oceanpowertech.com ocean@plrinvest.com (609) 730-0400 (212) 564-4700
Slide 29: PowerBuoy: Tapping into the Power of the Ocean
= POWERBUOY™ TAPPING INTO THE POWER OF THE OCEAN www.oceanpowertechnologies.com
Slide 30: Appendix: New Products
Appendix: New Products
Slide 31: Hybrid PowerBuoy
NTATION Hybrid PowerBuoy® * Over 1,000 kw (1+ MegaWatt) energy capability * Compact, lightweight, and easy to deploy « “Hot-swap” instead of refueling at sea * Scalable for higher-powered applications * Quick/easy shipment to remote locations Applications: * Subsea battery recharging ¢ Short-duratio
Slide 32: Subsea Battery Solutions
NVESTOR FEBRUARY 201 Subsea Battery Solutions * High performance/cost efficient power * Quick and easy to deploy and retrieve * Insensitive to severe weather conditions * Modular components - wide range of capabilities * Proven and robust technology components
Slide 33: Anchorless PowerBuoy
® Anchorless PowerBuoy Self-propelled— no anchor needed! * Self contained—no external moving parts * Remotely operated smart device * Quick deploy and simple retrieve * Liquid-fueled back-up * Leverages OPT ocean-proven designs & capabilities
Slide 34: Mooring Systems
Mooring Systems SUB SURFACE BUOY \ BRIDLE \ ‘\ ‘BRIDLE & 5 SUB SURFACE BUOY BRIDLE ANCHOR SYSTEM 1,000 - 3,000 METRES UMBILICAL HOR SYSTEM ‘SUB SURFACE BUOY Wises ANCHOR SYSTEM:
Slide 35: Commercialization Strategy
“Skate to where the puck’s going to be, not where it’s been.” — Wayne Gretzky OPT OCEAN POWER TECHNOLOGIES Commercialization Strategy = First Mover = strong Value * Building Demand *Targeted Focused Markets Applications For Scaling: " Sales/Marketing Working Technology \ = Trials and Demos = Deliver
Slide 36: Defense & Security - Strategy
Defense & Security - Strategy Naval Sc amammaae car TIN 6 i>” rence & Techno Defense Contractors OPT's Anchorless PowerBuoy® (Under Development) OPT’s PB3 PowerBuoy® (Fully Commercial) Leverage Existing DOD Contracts Organizations
Slide 37: Project Economics
NVESTOR PRESENTATION FEBRUARY Project Economics PowerBuoy® RENTAL and Services Example sequential payment milestones (% contract revenues recognized) and timing 3 to 18 months ‘Cumulative % Revenues Recognized PowerBuoy® SALE and Services Typical preferred sequential payment milestones (% contract r
Slide 38: Sources and References
Sources and References
Slide 39: Market Supporting Information and Sources
INVESTOR PRESENTATION NE Market Supporting Information and Sources Total Addressable Market The National Oceanographic and Atmospheric Administration (“NOAA”) 2016 Ocean Enterprise Report Oil & Gas Source: U.S. Bureau of Safety and Environmental Enforcement Greater than 10,000 sites are currently in
Slide 40: Decommissioning Sources
NVESTOR PRESENTATION ee Decommissioning Sources Footnote: + O11 & Gas UK Decommissioning insight 2017 hitos://o land final.df + Decommissioning Opportunities in Brazil's Oiland Gas Horizon bi Oil-and-Gas-Horizon + Deloitte: Decommissioning has potential tobe Australia'snextoil and gas boom hiios//iw
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