Slide 1: Ocean Power Technologies Investor Presentation March 2017
OCEAN POWER TECHNOLOGIES OCEAN ENERGY SOLUTIONS OPT OCEAN POWER TECHNOLOGIES INVESTOR PRESENTATION March 2017
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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 certain words or phrases such as “m
Slide 3: Company Description
COMPANY DESCRIPTION Pennington, New Jersey headquarters Nasdaq (OPTT) Market capitalization: $16M as of 3/4/17 Patented, proprietary technology (Over 65 patents awarded and pending) 30 employees with an engineering team of 20 members including masters and PhD level Currently offering a fully commerc
Slide 4: Strong intellectual property portfolio
Strong intellectual property portfolio Critical end markets, including oil & gas, ocean observing, defense & security and communications Estimated $8.5B total addressable market New management Commercial product OPT 4. Based off The National Oceanographic and Atmospheric Le x. ‘Administration (NOAA)
Slide 5: Our Oceans
>10,000 sites ofoil& gas | $78 USRevenue in 2016 from Ocean Stations are Enterprise deployed OUR OCEANS Our oceans represent a tremendous, untapped source of energy and are critical to issues such as climate, weather, energy, communications, defense and security OPT 1. eased of Te Natal Oceararaphi
Slide 6: Challenges of Incumbent Solutions
CHALLENGES OF INCUMBENT SOLUTIONS Incumbent solutions such as battery buoys or on-site vessels ‘YA Expensive ¢ Intermittent and unreliable data collection ¢ No real-time data transmission © Insufficient power * Limited to single-use applications © Limited data density * No awareness of failures Limi
Slide 7: The Solution: PB3 PowerBuoy
THE SOLUTION: PB3 PowerBuoy Power and communications platform for remote offshore applications * Considerable life-cycle cost savings compared with incumbent solutions © Provides up to 3 kilowatts (kW) of peak power © Site-dependant average daily generated power up to 2 kilowatts (kW) © 300 watts of
Slide 8: PB3 PowerBuoy - How It Works
10 Ft. above waterline Float 30Ft. below waterline Heave Plate PB3 PowerBuoy - How It Works Floating system, anchored to the sea floor down to 3,000 feet Heave plate and spar remain motionless in the water Float moves independent of the spar in response to wave motion Float motion drives electrical
Slide 9: Target Markets
TARGET MARKETS me ad Readiness) Low 5 Years Beyond.5 Years Commer Adoption POWERBUOY ADDRESSES POWER NEEDS IN GLOBALLY IMPORTANT END-MARKETS ESTIMATED TOTAL ADDRESSABLE MARKET (TAM) OF $8.5B 9 ‘OCEAN POWER TECHNOLOGIES.
Slide 10: Ocean Observing
OCEAN OBSERVING * Data collection, processing and real-time communications * PowerBuoy potentially transforms ocean environment intelligence Ocean Observing $2B TAM OPT Targeting 10%
Slide 11: Ocean Observing Applications
OCEAN OBSERVING Applications Include: Weather forecasting Climate change Ocean seismometry Ocean currents Environmental & biological monitoring Lower life-cycle cost with greater power and persistence
Slide 12: Oil and Gas
OIL AND GAS Trending toward deeper waters Industry investing in new technologies PowerBuoy presents cost-saving opportunities > 10,000 sites require power
Slide 13: Oil & Gas
OIL & GAS
Slide 14: Defense & Security
DEFENSE & SECURITY eee, * Detection and early warning systems require persistent power and real-time communications OPT Targeting 10% * Remote sensing stations for maritime security Applications include: * Remote radar & sonar stations Electro-optical and infrared sensors Networks and communications
Slide 15: Communications: Cellular/Wi-Fi Over Water
COMMUNICATIONS: CELLULAR/WI-FI OVER WATER * Maritime communications limited to costly satellite re oe oe Par Communications ¢ Military and civilian remote wi-fi and cellular communications $0.5B TAM Applications include: * Range extension for marine and coastal waterways and airways * Voice and data
Slide 16: Business Development Activities
Slide 17: Estimated Sales Process & Timeline
Estimated Sates Process & Timeline Probability of Revenues 17 Projected Timeline 2015 2016 2017. 2018 90% Step 6: Qualification and Subsequent: Orders 80% oe ‘Step 5: Application Demonstration 60% 50% Step 4: Request for Proposal and Response 40% p3: NDA and Application Discussion: Improved Timeline
Slide 18: Product & Technology Roadmap
PRODUCT & TECHNOLOGY ROADMAP * Focused on rapid product validation and cost-out * PB3-Gen2 fully commercial 18 1. Power Takeo (PTO)
Slide 19: Fiscal Years & Objectives
FISCAL YEARS 18 & 19 OBJECTIVES Creating demand, expanding delivery capabilities, and driving market adoption by: - Expanding marketing and business development footprint - Securing customer demonstration projects which lead to commercial revenues = - Securing strategic partnerships for supply, manu
Slide 20: Summary
SUMMARY Leading offshore power innovation Commercial ready product Strong IP portfolio Strong market pull How to Contact Us: www.oceanpowertechnologies.com Investor Contact: Andrew J. Barwicki Investor Relations P: (516) 662-9461 andrew@barwicki.com ie) ‘OCEAN POWER TECHNOLOGIES
Slide 21: Commercialization and Sustainable Revenues
olsed oes Commercialization and Sustainable Revenues
Slide 22: Back Up Slides
os BACK UP SLIDES
Slide 23: Sources
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 Ocean Observing The National Oceanographic and Atmospheric Administration ("NOAA") 2016 Ocean Enterpr
Slide 24: Markets - Supporting Information
24 MARKETS - SUPPORTING INFORMATION Oil & Gas Greater than 10,000 sites are currently in operation or ready for decommissioning. Ocean Observing Estimated total addressable market is $2B for 5 fiscal years beginning 2017. The market was refined for in-situ vs remote systems and also for the differen
Slide 25: PB3 PowerBuoy Commercial Design
PB3 PowerBuoy Commercial Design * Compact and easily transported * Shippable using standard 40-foot ISO shipping containers * Deployed using standard marine equipment and methods * Designed for three-year maintenance cycle as compared to one-year or less for incumbent solutions * Survivable design f
Slide 26: Thank You
OCEAN POWER TECHNOLOGIES -THANK YOU- WWW.OCEANPOWERTECHNOLOGIES.COM