Plug Power, Inc. · NASDAQ:PLUG
Plug Power — Investor Day (October 2021)
75 slides from Plug Power's investor day presentation, Oct 14, 2021
Slide 1: 2021 Plug Symposium
2021 Plug Symposium October 14, 2021 Copyright 2021, Plug Power Inc. Copyright 2021, Plug Power Inc.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. ("PLUG"), including but not limited to statements about PLUG's expectations regar
Slide 3: Energy Solutions
Energy Solutions Sanjay Shrestha GM, Energy Solutions & Chief Strategy Officer October 14, 2021 Copyright 2021, Plug Power Inc.
Slide 4: Energy Solutions - Mission Statement
Energy Solutions - Mission Statement Build one of the largest global energy companies that will focus on displacing diesel with green hydrogen Accelerate adoption of fuel cell applications and create a flywheel effect Decarbonize many other industries including transportation, energy, and power 4
Slide 5: Vertical Integration Accelerates Green Hydrogen Strategy
Vertical Integration Accelerates Green Hydrogen Strategy Building Blocks to Plug Power’s Green H2 Vertical Integration Our comprehensive platform should enable us to successfully serve multiple industries with low H2 Generation cost Green Hydrogen solutions \ Our capabilities are expected to generat
Slide 6: North America Green Hydrogen Plant Timeline
North America Green Hydrogen Plant Timeline Breaking Ground on 3 Plants in 2021 2 Plants Producing in the Summer of 2022 with a total of 4 by year-end More than 6 Plants by year-end 2023 13 Plants by year-end 2025 6
Slide 7: Clear path to 500 TPD by 2025
70+ TPD 200 TPD 300+ TPD 500+ TPD 500 Clear path to 500TPD by 2025 2025 400 Production (TPD) 300 2024 200 2023 100 2022 2021 0 7
Slide 8: Building a Green Hydrogen Generation Network in Europe
Building a green Hydrogen Generation Network in Europe Three factors driving down costs of green hydrogen Reduction in cap ex Continued decline in the cost of renewables Decline in the cost of capital Source: company statistics. including GenDrive, GenSure, GenFuel & Giner 8
Slide 9: Vision for Plant Scale/Renewable Asset and Distribution Network
Vision for Plant Scale/Renewable Asset and Distribution Network Worlds largest Largest TPD liquefier Gray H2 Electrolyzers 25 MW 250 MW 2.5 GW 25 GW Solar 75 MW 750 MW 7.5 GW 75 GW Land area 300 ac 3,000 ac 30,000 ac 300,000 ac Wind 55 MW 550 MW 5.5 GW 55 GW Land area 6,000 ac 60,000 ac 600,000 ac 6
Slide 10: Energy Landscape Transformation – Highest Potential
Energy Landscape Transformation – Highest Potential High renewable resource with pipeline access Self-Develop Self-Develop & Partner Partner 10
Slide 11: Spigot cost of Green Hydrogen lower than grey hydrogen price
Spigot cost of Green Hydrogen meaningfully lower than market price for Grey Hydrogen 7-10yrs Typical 15 TPD plant Payback Period Potential for back leverage and multiple form of capital post COD PTC, and National LCFS can accelerate build out and capital recycling! 11
Slide 12: New Apps Create Multiplier Effect for Hydrogen Demand
Hydrogen Demand Base Case = 500TPD 2025 New Apps Create Multiplier Effect for Hydrogen Demand 1kg/day 6kg/day Forklifts LCV 40-50kg/day 1MW 24/7: >1TPD HDV Stationary Power 500TPD of demand represents 5,000 class 7-8 trucks and less than 300MW of stationary power Long haul trucking in NA alone requi
Slide 13: ES BU Financial Outlook
ES BU Financial Outlook Energy Solutions platform targeting 2025 fuel revenue of $700M Assumes ASP lower than current grey 500TPD hydrogen pricing in the market Capacity EBITDA margin target in line with 2025 corporate target of 20% Proposed PTC, and National LCFS can substantially improve margins 1
Slide 14: Green Hydrogen Network creates flywheel effect
Green Hydrogen Network creates flywheel effect Well-positioned to be the next major global energy company Become a category king in this $10T industry. Green Hydrogen Generation Network will help accelerate proliferation of multiple fuel cell applications Drive demand for Green Hydrogen and reduce c
Slide 15: Electrolyzer BU
Electrolyzer BU Value Proposition of Leading Electrolyzer Technology: ELX Opportunity and Growth in Europe Ole Hoefelmann, GM, Electrolyzer Solutions October 14, 2021 Copyright 2021, Plug Power Inc.
Slide 16: Acquisition Update: Transforming Giner ELX into ELX Solutions
Acquisition Update Transforming Giner ELX acquisition into Best-in- Class ELX Solutions During last year’s symposium we shared the acquisition of best-in-class PEM technology We are converting this technology into World-Class Electrolyzer Solutions of varying size Stacks from Systems & Plants from 1
Slide 17: What makes Hydrogen Green?
What makes Hydrogen Green? Transformed Molecule Process Emissions NOx, SOx, Black Carbon or Coal Gasification Particulate Matter NOx, SOx, Black Carbon or Natural Gas (CH4) Steam-Methane- Particulate Matter Reforming CO2 that is captured Electrolysis through Green H2O Renewables Oxygen 17
Slide 18: What is an Electrolyzer?
What is an Electrolyzer? A system that applies an electrical The current splits the hydrogen This chemical energy can then be current to water element off stored indefinitely From a renewable source in the case of Hydrogen is split from the hydrogen / It can be stored as a gas or liquid to green (H2
Slide 19: Competitive Landscape
Competitive Landscape Alkaline Electrolyzer PEM Electrolyzer Plug Competitors Competitors Power High Current Density Operation Competing technologies High Efficiency but one winner at scale High Gas Purity Our PEM technology advantages allow us to stand alone Operating Pressure Differential Operatin
Slide 20: The best solution for our customers, locally
The best solution for our customers, locally To meet our customer’s ambitions, we need to deliver the lowest TCO for green H2 Customer’s ambition is reduced emissions and increased efficiencies Strong enabler is increase in renewable energy and decrease in cost We are continuing to build out our com
Slide 21: Technology and offers covering the complete green hydrogen value chain
Plug Power: Technology and offers that cover the complete green hydrogen value chain Green hydrogen production through electrolysis Liquefaction & distribution Fuel cell applications for mobility and stationary offers The only company today that can offer customers a turnkey fuel cell solution for m
Slide 22: Our sales pipeline is robust and diverse
Our sales pipeline is robust and diverse both geographically and from an industry application point of view. To date we have signed over: 50MW 1, 5, 10, and 20 MW systems expected to be delivered in 2022 100MW Expected to be delivered to customers by next year 22
Slide 23: We have signed business in Europe, the US and the Asia Pacific
We have signed business in Europe, the US and the Asia Pacific Markets with high activity Mobility Natural gas blending Industrial Applications Looking to the future, by 2025, we expect: 3,000MW Generating 1,000TPD of our electrolyzer of green hydrogen solutions Source: company statistics. including
Slide 24: We are making green hydrogen the molecule of choice
We are ambitious We are making green 100 MW hydrogen the molecule of Expected 2022 Sales choice Our Electrolyzer Solutions are growing through sales to customers and solutions provided for our own Green hydrogen needs. 300 MW Expected for our own green hydrogen use in 2022 In 2022 we expect to sell
Slide 25: Materials Handling
Materials Handling Jose Luis Crespo GM Material Handling Business Unit October 14, 2021
Slide 26: The pandemic has magnified the importance of moving products
The pandemic has magnified the importance of moving products into the end customer’s hands as efficiently as possible Plug has increased the productivity of our customers with high-asset utilization fleets by offering a solution that operates at constant and full power, compared to batteries.
Slide 27: Where do we stand against our 2024 targets?
Where do we stand against our 00 0 2024 targets? 00 0 S 0 2024 Target 2024 Target 00 LL $750M 5 Pedestal Customers 00 0 0 GS 0 2021 Results 2021 Results 00 LL $450M 5 Pedestal Customers 3 0 300 SS 2 0 200 2 U LG 0 52,000 165 00 0 Fuel cells installed, 2021 Refueling sites, 2021 0 20 2020 202 2022 20
Slide 28: Every electric forklift is a forklift where we can put a fuel cell
Every single electric forklift in the world is a forklift where we can put a fuel cell into. 4M 5M Operating forklifts, U.S. Operating forklifts, U.S. and Europe, 2021 and Europe, 2030 Large Medium Small 15% 25% 60% 200+ unit fleet 60-200 unit fleets >60 unit fleets 600k FORKLIFTS 1M units FORKLIFTS
Slide 29: We expect to continue to grow in the large fleet market
We expect to continue to grow in the large fleet market where we have proven value We also plan to expand our customer base in the medium and small size segments Most of the customers in those markets use lead-acid batteries, and even though total cost of ownership of fuel cells is lower than lead a
Slide 30: Medium Size Fleet Strategy
Medium Size Fleet Strategy We are aiming to achieve initial parity with lead acid batteries in medium size fleets by 2025 Today: U.S. & Europe Market overall Share 1.2% 2.7% 2021 market share with a 2024 projected market share by our five- 52K FC installed base year plan (125K projected FC installed
Slide 31: Small Size Fleet Strategy
Small Size Fleet Strategy We are putting a strategy in place to achieve cost parity with lead acid batteries with the small fleets in 2030 2030 Potential This analysis only covers North America and 30% $4B Europe, and we expect to see upside coming from other areas of the world, like Asia, as we exp
Slide 32: Cost Parity Drivers & Timeline
Cost Parity Drivers & Timeline Enablers that help us reach cost parity by 2025 and 2030 We will use the improved cost of green hydrogen We are improving our stack technology and creating more efficient fuel cell platforms Creating hydrogen infrastructure solutions aimed at the medium and small size
Slide 33: Plug created the first commercially feasible market for fuel cells
Plug created the first commercially feasible market for fuel cells in material handling. As we enter the next phase in the development of the green hydrogen economy, material handling is expected to continue to grow – with Plug at the forefront. Plug’s world-class ecosystem will enable the accelerat
Slide 34: Mobility & Stationary Power “New Markets”
Mobility & Stationary Power “New Markets” Keith Schmid GM, New Markets & President New Product Development October 14, 2021 Copyright 2020, Plug Power Inc.
Slide 35: Transition to Zero Emission Sustainable Solutions is Accelerating
Transition to Zero Emission Sustainable Solutions is Accelerating Many of our strategic customers, like those in the logistics, on road transportation, and aviation sectors, have significant sustainability goals. Environmentally conscious public sentiment driving Industry to decarbonize Public Senti
Slide 36: ProGen Technology Platform is Robust and Proven
ProGen Technology Platform is Robust and Proven 50,000+ units shipped High utilization applications (7x24) Greater than 600 million run hours in the field More than 2 Billion miles traveled 20 Years of R&D & Field Experience odular Proven Technology Platform Scalable urnkey Flexible Design for Multi
Slide 37: Proven performance in demanding environments
600 million+ 40G (Run Hours) (Physical shocks) We’ve proven our performance in some of the most difficult and demanding environments that we have encountered -30 Degrees C 24-by-7 (in Freezers) (Effective run time) 37 37
Slide 38: Targeting Three Primary New Market Applications
Multiple Target Markets Targeting Three Primary New Market Applications With a robust technology platform established, trucks, planes, data centers are our logical progression. Commercial Fleet Vehicles Stationary Power Aerospace Class 3 - 8 Megawatt Scale Short Range Last Mile Backup Applications C
Slide 39: Commercial Fleet Vehicles
Commercial Fleet Vehicles 39 39
Slide 40: ProGen Engine Line Enables New Market Applications
ProGen Engine Line Enables New Market Applications ProGen System Models Models can be used in series and parallel combinations 15KW 85KW 30KW 125KW Pre-engineered OEM platform “Plug and Play” system solution Includes all balance of plant Easy to integrate 40
Slide 41: Modular Engines Provide Leverage and Enable Multiple Applications
Modular Engines Provide Leverage and Enable Multiple Applications 15kW 85kW 30kW 125kW 85kW >1mW 41 41
Slide 42: Customers can meet sustainability targets by de-carbonizing fleets
Transportation and logistics customers can meet their sustainability targets by de-carbonizing their fleets In fact, it’s one of the only ways Our green hydrogen production plants, ProGen engines, and GenFuel hydrogen refueling stations are key parts of the solution set. In mobility, Plug is specifi
Slide 43: Why commercial fleet vehicles are appealing to Plug
The reasons that commercial fleet vehicles are so appealing to Plug are three-fold They're high utilization vehicles, which inherently require long-range and the benefits of fast refueling, key attributes of the hydrogen fuel cell value proposition. Cargo volume and payload capacity are important. F
Slide 44: HYVIA: The New Hydrogen Path
On road in Europe expected by end of 2021 HYVIA: THE NEW HYDROGEN PATH + Joint Venture for turnkey hydrogen mobility solutions Plug Power’s ProGen Engine Technology Renault LCV Platforms (large, medium, and small van platforms) Units on road 4Q 2021 Customer Pilots expected Q1, Q2 2022 Based on the
Slide 45: Large-scale stationary: generator replacement
The next major segment of Plug's new market business strategy is what we call large-scale stationary Large-scale stationary is essentially generator replacement. It's about eliminating the emissions associated with diesel in the landscape going forward This market can be 25 billion+ * huge… the glob
Slide 46: Two categories of large-scale stationary opportunities
We break large-scale stationary opportunities into two categories Backup power Always-available power that can be depended on when the utility grid can't deliver Primary power Replacing the traditional utility with an installation of multiple stationary fuel cell generators in a microgrid or continu
Slide 47: Backup Power
Backup Power These products are built using arrays of our ProGen 125KW engines They are housed in industrial containers for ease of transportation and installation. You can take multiple containers and you can combine them to build very, very large power stations. Large-scale stationary line 250-kil
Slide 48: Backup Power: The Data Center
Backup Power One of the largest backup applications is the Data Center 9 to 12 megawatts of diesel backup power in a typical datacenter building The primary obstacle for customers as they go forward in the backup power space is the regulatory restrictions on diesel emissions. Plug Power plans to be
Slide 49: The Push To Eliminate Diesel
Fuel Cells For Stationary Power The Push To Eliminate Diesel “We’re announcing that we’re aiming to eliminate diesel fuel by 2030. While diesel fuel accounts for less than 1% of our emissions, we believe it’s Microsoft, one of the world’s largest data-center important to help accelerate the global t
Slide 50: Fuel Cells in Stationary Power Applications
Fuel Cells in Stationary Power Applications Critical Backup Distributed Generation Microgrid/Energy Storage Hyperscale Data Centers Delivery Fleet EV Charging Remote Microgrids Retail Backup Remote Operations (Mining/Drilling) Utility Microgrids Critical facilities Event Rental Fleet Power Community
Slide 51: Fuel Cell Systems for Large Scale Backup Power
Fuel Cell Systems for Large Scale 100 kW to Multi-megawatt Backup Power Microgrid and Storage Data Center Backup GenSure HP Systems are efficient, ultra reliable and environmentally responsible replacements for diesel generators in high power, mission critical applications. Scaling based on our 125k
Slide 52: Hydrogen and Aviation
Fuel Cells For Aerospace Hydrogen and Aviation Used safely for over 40 years as an industrial chemical and as fuel for space exploration High energy content by weight but energy content by volume is lower so it occupies more space Flexibility to store as liquid or gas to address space and payload co
Slide 53: ProGen for Transportation
ProGen for Transportation 125kW ProGen Engines “Best-in-class” metal plate stacks Highly efficient turbo-compressors Specialized light-weight alloy plates for aerospace Scalable ProGen Engines Enable ZE Commercial Aviation 53
Slide 54: ProGen for Aerospace and UAV
Plug Power Fuel Cell Platforms ProGen for Aerospace and UAV Light weight engine for electric aircraft Enables longer flight duration Fast refueling and zero emissions 54
Slide 55: Fuel cells enable long duration flight and maximize payload
Fuel cell solutions enable long duration flight and maximize payload capability over battery solutions 55 55
Slide 56: Fast refueling maximizes vehicle availability
Fast refueling maximizes vehicle availability offering significant advantages over battery charging Estimated Hydrogen Refill and Battery Charge Time Comparison 56 56
Slide 57: Market Opportunity
Market Opportunity H2-powered commuter, regional, and short-range aircraft Where first? Europe / North America How? Ground Support Equipment Commuter Aircraft (H2 Fuel Cell) Passenger Ground Transport Regional Turboprop Aircraft (H2 Fuel Cell) Short Range Aircraft 57 57
Slide 58: Plug Power Universal Hydrogen Aviation Partnership
58 Plug Power Universal Hydrogen Aviation Partnership Dash 8-300 / ATR 42 fuel cell powered regional aircraft Megawatt Scale Fuel Cell Power Complete Ecosystem Approach 58 58
Slide 59: Plug Power / Universal Hydrogen Aviation Partnership
Plug Power / Universal Hydrogen Aviation Partnership 59 59
Slide 60: Plug Power Aviation Partnerships
Plug Power Aviation Partnerships eSTOL: Electric Short Take Off and Landing aircraft Passenger and Cargo Applications Actionable drone platforms Long duration extended flight times Heavy lift capability 60 60
Slide 61: Delivering solutions to enable a zero-emission sustainable future
Delivering solutions to enable a zero-emission sustainable future Transition to zero emission Hydrogen fuel cells are the technology of choice for high utilization applications sustainable solutions is Long range, Fast Fueling, Minimal accelerating impact on Cargo and Payload capacity Plug is focuse
Slide 62: Financials
Financials Paul Middleton, CFO October 14, 2021
Slide 63: What we expect Plug to look like in 2025
What we expect Plug to look like in 2025? $3B in Annual Sales 30%+ Gross Margin 17%+ Operating Income A Global Hydrogen Ecosystem Market Maker Poised for Continued Substantial Growth Diversified Global Hydrogen Generating Significant Differentiated Market Position in Technology Company Solution Plat
Slide 64: Plug’s Building Blocks to Drive Growth
Plug’s Building Blocks to Drive Growth Large Global Markets Accelerating the Hydrogen Economy Broad Product Platform and Traction with Industry Leaders Green Hydrogen platform will be a new market and driver in other product lines Investing in Capabilities to Expand Industry and Geographic Footprint
Slide 65: Hydrogen Investments Accelerating Growth
Hydrogen Investments Accelerating Growth 2021 Forecast of $500M represents ~50% growth over 2020 Projections ($ in millions) ~50% CAGR $3B Forecast >$825 to 850M forecast in 2022; >65% growth over 30% CAGR 2021 $500M Forecast $64M 2014 2021 2025
Slide 66: Market Penetration Growing
Market Penetration Growing Cumulative Deployments (2021 onward represents forecasts) Fuel Cells 2025 180,000 H2 Sites 2025 less than 5% global 160,000 market share 800 140,000 700 2024 120,000 600 100,000 500 2023 80,000 2022 400 2021 60,000 2020 300 2019 40,000 2018 200 2017 2016 20,000 2015 100 0
Slide 67: Electrolyzer (Total MWs Deployed Projections)
Electrolyzer (Total MWs Deployed Projections) Projecting > 3 GW deployed to external customers by 2025 Cumulative 5,000 4,500 2025 4,000 3,500 2024 3,000 2,500 2,000 2023 1,500 1,000 2022 500 2021 -
Slide 68: New Market Growth Projections
New Market Growth Projections Cumulative Deployments (2021 onward represents forecasts) Cumulative Fuel Cell Deployments FC Volume EV, Stationary Power & New Markets BU 35,000 2025 30,000 25,000 20,000 15,000 2024 10,000 2023 5,000 2022 2021 - 2021 2022 2023 2024 2025
Slide 69: Projected Growth by Region
Projected Growth by Region 2021- $500 million 2025- $3 billion EU EU APAC RoW NA NA RoW
Slide 70: Projected Growth Map from Point A to B
Projected Growth Map from Point A to B Material Handling New Markets Green Hydrogen Market (Fuel (EV and Stationary) and Electrolyzers) 2025 Action Plans Market Tail Winds Regulatory Develop market channels - customers & partners Social Leveraging the global market for electrolyzers Cost Curve ~$1.5
Slide 71: Growth & Focused Cost Management Driving Gross Margin and OPEX Leverage
Growth & Focused Cost Management Driving Gross Margin and OPEX Leverage (% of Revenue) 2025 Target Business Model Key Drivers Continual Innovation >30% ~13% Improving Performance & Reducing Costs Gross Margin OPEX Leverage Vertical Integration Improve Performance, Reduce Costs and Lead Times Supply
Slide 72: Gross Margin Map from Point A to Point B
Gross Margin Map from Point A to Point B Equipment Improvements Higher volume = better leverage of fixed cost & supply chain pricing Vertical integration to increase reliability and reduce costs Innovation leading to simpler design of fuel cells Service Improvements Stack enhancements to increase re
Slide 73: Projected Service and Fuel Costs Per Unit Trends
Projected Service and Fuel Costs Per Unit Trends Services Cost Target Roadmap Service Cost Roadmap 60% Reduction Improved stack life via new designs Newer models in fleet via customer refresh Cost Per Unit Standardized customer offerings Enhanced digitized diagnostics 2021 2023 2025 Hydrogen Cost Ta
Slide 74: Success Yielding Improved OI and Operating Cash Flows
Success Yielding Improved OI and Operating Cash Flows (% of Revenues) Drivers 2025 Target Business Model Sales & Operating Margin Growth Core Business is not Capex Intensive >30% Gross Margin Developing the Supply Chain Enables More Effective Working Capital Strategies Growth Drives More Efficient C
Slide 75: Corporate Headquarters
Corporate Headquarters 968 Albany Shaker Road, Latham, NY 12110 plugpower.com