Slide 1: 2012 Plug Power Annual Shareholders Meeting
2012 Plug Power Annual Shareholders Meeting May 16, 2012 Andy y Marsh,, President and CEO The content of this presentation is PLUG POWER INC. PROPRIETARY AND 11 CONFIDENTIAL. Copyright 2012 by Plug Power Inc.
Slide 2: Plug Power Inc. Safe Harbor Statement
Plug Power Inc. Safe Harbor Statement This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which a
Slide 3: Our Beliefs
Our Beliefs We are the Premier system integrator in rapidly emerging PEM based fuel cell market We W have h created t d commercial i l value, l with ith minimal government support We are focused Must know the application Our market is large We are on a path to profitability 3
Slide 4: The Opportunity
The Opportunity • Creating customer value in Material Handling • Business works because we offer customers a Market Opportunity* solution to improve their business • Constant p performance – no batteryy droop p • Hydrogen refueling in less than 2 minutes • Improved productivity, lower operating cost
Slide 5: Timeline for Implementation
Timeline for Implementation 2012-2013: Sales Expansion, 2011-2012: Global Expansion Ramp Product Line, Sales 2009-2010: Expansion Initial Sales Traction 2008-2009: Product Line Development 5
Slide 6: Sales and Order Expansion
Sales and Order Expansion Total GenDrive Orders: 524 Market Expansion: launch of class-2 product Total GenDrive Orders: 358 Key Customers: Whole Foods Market: US Key Activities: One M Key Customers: Central operating hours in field Grocers Key Activities: Supply agreement with Ballard 6
Slide 7: $1B annual opportunity
Today's Fuel Cells for proven, reliable power. wanders WOlUG power ONCE Sy BS > Good things Walmart x SCO oO Associated Wholesale Grocers _Ceabge WHOLE POG D weevcesess “SO FOODS FedEx. Ad A) ercedes-Benz CONSOLIDATED FOODS Mi Cue & wits CYS CS $1B annual opportunity €3 Kimberly-Clark Wegmans WinCo
Slide 8: Customer Success
Customer Success 6 sites on 100% hydrogen – Houston, Houston Front Royal, Philadelphia, San Antonio, Boston and Long Island Commitment for 2 additional sites – Los Angeles Angeles, and Riverside No battery infrastructure Multi-distribution center commitment Operates 100+ DCs with over 11,0
Slide 9: Customer Success
Customer Success • Three sites with over 500 forklift trucks by June 30, 2012 • Eliminated need to change out lead acid batteries • Expected GHG reduction up to 72% compared to batteries charged from grid • Negotiating future deals in North America • Operates 100+ DCs with close to 20,000 forklift t
Slide 10: Customer Success
Customer Success Food distribution center in Compton, CA 161 GenDrive units Fast fuel cell refueling and longer times between fillings = more productivity Kroger is largest retail food distribution company in North America Kroger has 45 other distribution centers in the US 2011 - $3.4M i
Slide 11: Path to Profitability
Path to Profitability Increased orders 361% from $12M in 2010 to $46M in 2011 Record backlog of $36M Achieved 44% positive gross margin improvement in Q4 2011 vs. Q4 2010 Introduction of next generation low-cost platform Air Liquide Liq ide joint venture ent re opport opportunity nit to ad
Slide 12: Financials Total Backlog going into 2012: $36M
Financials 2011 2012 (projected) Revenue ($ mil) $27 5M $27.5M $40M Gross Margin on Product Sales (32 1%) (32.1%) 10% (%) *EBITDAS EBITDAS($ mil) ($25 2M) ($25.2M) ($12 $13M) ($12-$13M) Total Backlog going into 2012: $36M *We define EBITDAS as net income before interest, taxes, depreciation, amortiz
Slide 13: Gross Margin Improvement
Gross Margin Improvement Components of GM% Improvement from Q4, 2011 to Q4, 2012 20.3% 18.8% 1.5% 16.2% 2.6% 13.4% 2.8% 15.0% -1.6% 1.6% Q4, 2011 GM% Material Cost Direct Labor Capacity Reliability Reductions Savings Utilization Improvements 13
Slide 14: Beyond North America
Beyond North America Joint venture between Plug Power and Axane Created to develop and sell GenDrive into European material handling market Opportunity in Europe exceeds that in NA Building upon Air Liquide and Plug Power’s customer relationships and engaged with over two dozen new prospects
Slide 15: Summary
Summary First mover advantage – 85% market share Emerging technology that has reached commercial viability – 2,000+ units across 30 facilities Increased orders 361% from $12M in 2010 to $46M in 2011 Expected profitability at $70M-$75M in revenue E European expansion i with ith Ai Air Li Li
Slide 16: Albany Shaker Road
968 Albany Shaker Road Latham, New York 12110 518.782.7700 www. plugpower.com