Ocean Power Technologies, Inc. · AMEX:OPTT
Ocean Power Technologies — Investor Presentation (November 2018)
42 slides from Ocean Power Technologies's investor presentation, Nov 19, 2018
Slide 1: Ocean Power Technologies, Inc. Investor Presentation November 2018
Ocean Power Technologies, Inc. Investor Presentation — November 2018 OPT OCEAN POWER TECHNOLOGIES
Slide 2: Forward Looking Statements
INVESTOR PRESENTATION NOVEMBER | 2018 Forward Looking Statements In addition to historical information, this presentation contains forward-looking statements that are within the safe n Reform Act of 1995. Forward-looking statements are identified ikely result", "believe", "expect", "will continue",
Slide 3: About Ocean Power Technologies
About Ocean Power Technologies =
Slide 4: Ocean Power Technologies... Who We Are
INVESTOR PRESENTATION NOVEMBER | 2018 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 Offshore O
Slide 5: Ocean Power Technologies... Quick Facts
INVESTOR PRESENTATION NOVEMBER | 2018 Ocean Power Technologies... Quick Facts * NASDAQ; OPTT * Market Cap: approx. $15M * TTM Revenue: approx. $300K* * Cash & Equivalents: $8.4M* * Organization: Over 40 employees including deep engineering capabilities * Intellectual Property: Proprietary technology
Slide 6: Investment Thesis
INVESTOR PRESENTATION NOVEMBER | 2018 Investment Thesis ¢ Fully commercial and growing * Innovative products and services * Strong intellectual property portfolio * Large and diverse addressable markets: > Offshore O&G » Defense & Security » Science & Research » Telecommunications * Experienced and
Slide 7: OPT Timeline: Distributed Power
INVERTER FRECERTATION O PT Ti me | | ne Distributed Power NOVEMBER | 2018 Progress/ Impact Grid Connected Wave Power * New Production Facilities Leadership Additions OPT io OS an 2014 2016 2017 2015
Slide 8: 2018 Highlights
INVESTOR PRESENTATION lla 2018 Highlights 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 aes A 4 Added key senior leadership — bu
Slide 9: y
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Slide 10: How Our Technology Works
How Our Technology Works tp PowerBuoy™ * Floating system... standard “arn anchorage down to 3,000 meters above waterline * Submerged heave plate & spar... remain motionless in ocean waves ° Float rides ocean waves... driving an electric generator which charges on-board batteries 30Ft. pelow Spar Pri
Slide 11: PowerBuoy Market Value Proposition
PowerBuoy™ Market Value Proposition Cost Savings and Operational Flexibility OQ Savings by eliminating vessels... “unmanned station” provides persistent power and communications 1 Increased safety... by allowing remote operations from shore QO Faster operational decision-making... from real-time sub
Slide 12: Customer Projects
Customer Projects Eni S.p.A. 1% year lease 1% year extend option Purchase option Early Nov. '18* deploy in Adriatic Sea Premier oil 9 month lease w/ext. option Purchase option December ‘18* ship Early 2019* deploy in Central North Sea Enel * Estimated Dates Chile feasibility study Nov.-Dec. ’18* eva
Slide 13: Strategic Position
Strategic Position va e/ bP x
Slide 14: The Blue Economy — Our Total Addressable Market
The Blue Economy — Our Total Addressable Market Communications
Slide 15: Offshore Oil & Gas
Offshore Oil & Gas Applications - Key drivers oe z F Moving toward electrification and digitization + Improved site safety and security * Equipment monitoring and control >10,000 sites + Communications require power Subsea battery charging Deep/ultra-deep waters means farther offshore * Subsea robot
Slide 16: Offshore Oil & Gas - Example
_ Offshore Oil & Gas - Example Example: Oil Field Decommissioning Market Segment OCEAN POWER TECHNOLOGIES Offshore oil & gas production facilities to be decommissioned between 2018 to 2025*
Slide 17: Defense & Security
Defense & Security Applications Key drivers * Early warning systems Surface threat detection and remote surveillance + Renewable Power High Bandwidts Comal Subsea / submatine/ : ; 20 kw-Hr Power Storage ; Remote networks and Peruse AU threat detection communications MetOcean Sensing * Subsea chargin
Slide 18: Defense & Security - Strategy
Defense & Security - Strategy i" Qs eres Defense Contractors Defense Strategy ‘OPT's Anchorless PowerSuoy™ (Under Development) ‘OPT's PB3 PowerBuoy™ {Fully Commercial) Leverage WN Rapid Existing DOD Funding r PT Contracts Organizations OCEAN POWER TECHNOLOGIES
Slide 19: Science & Research Applications
Applications Climate change Weather forecasting Ocean currents, waves, chemistry, and seismometry Fish and mammal migration Environmental and biological monitoring OCEAN POWER TECHNOLOGIES Science & Research Key drivers * Life-cycle cost “2 * Power availability and persistence + Real-time environmen
Slide 20: 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 * Deep water stations operations * Quick-deploy search and rescue * Bandwidth * Migrant offs
Slide 21: Our Strategy
Our Strategy we we C a]
Slide 22: Commercialization Strategy
“Skate to where the puck’s going to be, not where it's been.” — Wayne Gretzsky OCEAN POWER TECHNOLOGIES Commercialization Strategy = First Mover = Subsea Power = Strong Value = Surveillance & Monitoring * Building Demand * Offshore Connectivity Targeted Focused Markets Applications For Scaling: = ®
Slide 23: Transaction Economics
Transaction Economics MUNICATION ANTENNA\e, _/-MDEO CAMERA LITE TRACKER Base PowerBuoy™ + Value-Added Engineering + Support Services + Sale or Lease + Packaged Options + Marine Services PT + Customization + Remote Monitoring ae ero CHINO OEIES + Integration Services + Extended Service Agreements
Slide 24: Products and Services — Fully Commercial Today
NOVEMBER | 2018 Products and Services — Fully Commercial Today PB3 PowerBuoy™ Support Services Long Deployments * Customization Persistence Pecored Onucrs Permanency Engineering/Design Low Maintenance Innovation/Testing Renewable Marine Services
Slide 25: Products and Services — Under Development
os Products and Services — Under Development UMBILICAL ~ Modular / Scalable PowerBuoy™ * Defense Focus hybrid Subsea Battery Anchorless Integrated PowerBuoy™ Solutions PowerBuoy™ Mooring + Shorter Deployments * Shorter Deployments * Advanced Design * Combined power + High Energy Storage * Low Mainte
Slide 26: Target Market Buying Process
Target Market Buying Process Revenue z Stream New/repeat customers, multiple PowerBuoy™ purchases revenue backlog generation Launch Customers Initial demonstration projects, rental/service revenues, “try before you bay” a 4 Proposals Budgetary estimates, technical proposals, contract negotiations No
Slide 27: Project Economics
NOVEMBER | 2018 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 revenues recogn
Slide 28: Opportunity Pipeline
INVESTOR PRESENTATION NOVEMBER | 2018 Opportunity Pipeline 50 Active Opportunities through FY21 > >$35 Million Potential Revenues > 75% Offshore Oil & Gas = ~50% Subsea Charging = ~40% Surveillance & Monitoring = ~10% Other >$10 million in proposals issued toward FY19 backlog
Slide 29: Management Team — Experienced and Disciplined
INVESTOR PRESENTATION NOVEMBER | 2018 Management Team — Experienced and Disciplined Executive Title Selected Experience George H. Kirby Chief Executive Officer @ | SAIC. ane amsc tyCa Catalent Matthew T. Shafer Chief Financial Officer Oeeaconars w UALEANT Ge Enerey Christopher A. Phebus VP. of Engin
Slide 30: Our Financials
Our Financials
Slide 31: Financial Profile
INVESTOR PRESENTATION NOVEMBER | 2018 Financial Profile Selected Financial Information Cai Balance Sheet (unaudited) 7/31/18 Total shares outstanding Cash, equivalents, restricted cash $8,362 % owned by directors & officers (2) Total current assets 8,923 Warrants outstanding Property & equipment, ne
Slide 32: Investment Thesis
NOVEMBER | 2018 INVESTOR PRESENTATION 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 * Experience
Slide 33: Contacts
OPT OCEAN POWER TECHNOLOGIES Contacts Matthew Shafer Chief Financial Officer & Treasurer (609) 730-0400 ext. 224 Porter, LeVay & Rose Michael Porter, President ean @plrinvest.com (212) 564-4700
Slide 34: PowerBuoy: Tapping into the Power of the Ocean
= POWERBUOY™ TAPPING INTO THE POWER OF THE OCEAN < www.oceanpowertechnologies.com
Slide 35: Appendix: New Products
Appendix: New Products
Slide 36: Hybrid PowerBuoy
NOVEMBER | 2018 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
Slide 37: Subsea Battery Solutions
NOVEMBER | 2018 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 38: Anchorless PowerBuoy
OPT OCEAN POWER TECHNOLOGIES Anchorless PowerBuoy"y * 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 39: Mooring Systems
N POWER TECHNOLOGIES Mooring Systems SUB SURFACE BUOY BRIDLE D \ cane \s aDLE \ SUB SURFACE BUOY — ANCHOR SYSTEM SUB SURFACE BUOY ANCHOR SYSTEM 1,000 - 3,000 METRES
Slide 40: Sources and References
Sources and References
Slide 41: Market Supporting Information and Sources
NOVEMBER | 2018 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 operatio
Slide 42: Decommissioning Sources
Decommissioning Sources Footnote: + Oi Gas UK Decommissioning Insight 2037 ee ee ee aes ‘Sieane-GastHonzon jofte: Decommissioning has potential tobe Australia's next oi and gas Boom ip /an.2.deots com s/en/oagee/mesis- t-oll-and-gar-boom-160517 htm! ‘+ Preparing for the Next Wave of Offshore Decommi
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