Slide 1: 2013 December Business Update
2013 December Business Update The content of this presentation is PLUG POWER INC. PROPRIETARY AND 1 1 CONFIDENTIAL. Copyright 2013 by Plug Power Inc.
Slide 2: Plug Power Inc. Safe Harbor Statement
Plug Power Inc. Safe Harbor Statement This communication contains statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements contain projections of our futur
Slide 3: Progress Path to Success
Progress Path to Success May, 2013 May 15 – October 8 October 8 – December 4 • Critical • Additional Investment • Additional from Air 11M USD 17.8M Liquide in USD in • 1M USD of bookings bookings bookings Current negotiations to deploy GenDrive at multiple-site distribution centers will significantl
Slide 4: Structure of a Turn-key Multi-site Deal
Structure of a Turn-key Multi-site Deal • 3-6 sites • 750-1500 units Appx. 50-60% • Deployed over 2 years of revenue • 5 year extended service contract • Hydrogen infrastructure • Hydrogen fuel Value per site: 8-12M USD 4
Slide 5: Series 1000 Series 2000 Series 3000
Series 1000 Series 2000 Series 3000 • 3-Wheel Sit-Down • Stand-Up Reach • End Rider Pallet • 4-Wheel sit-Down • Stand-Up • Center Rider Pallet Counterbalanced • Man-Up Orderpickers • Turret Trucks • Tow Tractors All Products are Commercially Available NOW! 5
Slide 6: Typical Service Offering
Typical Service Offering • 5 Year Contracts • Labor • Parts • Hydrogen Infrastructure • Represents 25% of total deal value • Included in Plug Power turn-key solution • Knowledge acquired by on-site support drives continual product improvement • Some customers today: • Sysco, Walmart, Kroger A Growin
Slide 7: Typical Hydrogen Offering
Typical Hydrogen Offering • Hydrogen infrastructure • Today, portions deployed at Walmart Washington Court House • Compression system designed for deployments • Hydrogen re-sell • Bulk purchase of hydrogen • Daily, Plug Power customers purchase 2-3% of total available liquid H2 in the North America,
Slide 8: Material Handling Focused Segments
Material Handling Focused Segments 8
Slide 9: Success in Manufacturing: Auto Makers
Success in Manufacturing: Auto Makers • BMW, Spartanburg, South Carolina: • 205 GenDrive units in assembly hall • 118 GenDrive units in logistics, body and paint shot • World’s largest users of fuel cells on a single site • Mercedes-Benz, Tuscaloosa, Alabama: • 2012: 72 GenDrive units for vehicle as
Slide 10: Success in Manufacturing: Auto Makers
Success in Manufacturing: Auto Makers • Batteries are undependable – GenDrive provides predictability • Easy, fast operator refueling – minutes vs. hours • Lower operational costs through eliminating battery room and charging equipment • Reduction of greenhouse gas emissions by up to 80% Targeting A
Slide 11: Success in Food: Kroger
Success in Food: Kroger • Compton, California • Over 160 units deployed for over a year • Stapleton, Colorado • New contract win for Plug Power • Will deploy over 200 GenDrive units in 2014 • Long term service contract in place at both facilities Improves Productivity 11
Slide 12: Success at Walmart
Success at Walmart • Deployments: Over 500 Units • Cornwall, Canada • Washington Courthouse, Ohio • Calgary, Canada • At Washington Courthouse facility - providing service and products • Continuing to purchase additional units at these sites • Another example of recurring revenue Targeting providing
Slide 13: Customer Base Continues to Grow
Customer Base Continues to Grow Backlog product shipments: 2014 • Today: 28M USD • 12/31: 43M USD 70% of 2014 requirements of 60M USD Recurring Revenue • 10M USD booked for 2014 and growing 13 13 13
Slide 14: Annual Product Business Break Even
Annual Product Business Break Even Product Revenue $ 70,000,000 $ 58,600,000 $ 34,000,000 Material Cost $ 46,900,000 $ 39,262,000 $ 22,780,000 Production Labor Fully Burdened $ 4,850,000 $ 4,850,000 $ 4,850,000 All other Expenses $ 14,700,000 $ 14,472,000 $ 13,980,000 EBITDAS $ 3,550,000 $ 16,000 $
Slide 15: Service Cost: 75% Reduction in Breakdowns
Service Cost: 75% Reduction in Breakdowns Key Projects • Addressed systematic failures • Training – misdiagnostics • Billing out staff 15
Slide 16: Product Cost Reduction
Product Cost Reduction Key Projects • Design simplification • Scale • Alternative suppliers 16
Slide 17: Second Source Options
Second Source Options • Key component – stacks • Single sourced, today • Considering: • Alternative suppliers • Joint development with Air Liquide 17
Slide 18: Alternative Suppliers
Alternative Suppliers • Extensive review of potential substitutions • Ground Support Equipment deployment will use one of the potential alternatives • Looking to deploy GenDrive in 2014 with new supplier 18
Slide 19: Joint Development Opportunity
Joint Development Opportunity • Extensive survey of plate and membrane suppliers • Large volumes for industry • Great interest • Leverage Plug Power’s system and mechanical design capability and Air Liquide electro-chemist know-how • Opportunity to simplify our system, increase product life and redu
Slide 20: Market Expansion Opportunities
Market Expansion Opportunities 20
Slide 21: Market Expansion Through HyPulsion
Market Expansion Through HyPulsion • HyPulsion has completed one year of business and product development activities • Europe greater market opportunity than North America • 7 collaboration projects in place: • Jungheinrich, Linde/Fenwhich, Still, Crown, NACCO, Toyota Material Handling Equipment • S
Slide 22: Market Expansion Opportunities
Market Expansion Opportunities - Based on GenDrive Product Architecture: Adjacent Markets With Same Dynamics as Materials Handling plug power GenDrive: Today’s Fuel Cells for proven, reliable power. Transportation Refrigeration Ground Support Equipment Range Extenders Units (TRU) (GSE) Application:
Slide 23: 2013 is Not Over…
2013 is Not Over… • 17.8M USD orders to date this quarter, and building • Will close a multi-site turn-key deal in coming weeks • Expect 30-40M USD in bookings for the quarter • Will reach EBITDAS breakeven in 2014 THIS WILL BE A BLOWOUT QUARTER FOR ORDERS 23
Slide 24: E-mail questions to:
E-mail questions to: teal_vivacqua@plugpower.com 24 24