Eos Energy Enterprises, Inc. · NASDAQ:EOSE
Eos Energy Enterprises — B. Riley Principal Merger Corp. II — SPAC Merger (September 2020)
31 slides from Eos Energy Enterprises's SPAC merger presentation, Sep 8, 2020
Slide 1: Eos Energy Storage Investor Presentation September 2020
Eos Energy Storage Investor Presentation September 2020
Slide 2: Disclaimer
Disclaimer 2 This presentation does not purport to contain all of the information that may be required to evaluate a possible voting or inves tment decision with respect to B. Riley Principal Merger Corp. II (“BRPM II”). The recipient agrees and acknowledges that this presentation is not intended to
Slide 3: Transaction Overview & Investment Highlights
Transaction Overview & Investment Highlights
Slide 4: Eos Energy Storage System
Eos Energy Storage System 4 • Optimized for the 4+ hour storage market • 21 patents and over 600 claims; Eos owns the largest battery testing facility in the US • Zinc electrolyte - based chemistry; No rare earth minerals required • Fully recyclable, no n - flammable , and non - toxic • Made in the
Slide 5: Management team
Management team 5 ▪ 25+ years at GE with 12+ years’ CEO experience leading GE’s energy businesses (Gas Power Systems, Power Conversion) ▪ S pent 10 years with GE Oil & Gas in leadership roles in finance, quality, and commercial operations, culminating in being named a GE Corporate Officer in 2008. S
Slide 6: Transaction Overview
Transaction Overview 6 Transaction Overview ▪ B. Riley Principal Merger Corp. II (NYSE:BMRG, “BRPM II”) has entered into a definitive agreement to combine with Eos Energy Sto rage LLC (“Eos”) ▪ The combined company is expected to be capitalized with $202m of new equity which will be used to support
Slide 7: Investment Highlights
Investment Highlights 1 Global Energy Storage Market is at its Inflection Point ▪ Energy storage market expected to grow at a ~20% CAGR through 2040 ▪ Energy storage market to reach 350 GWhs by 2025 1 , representing a ~$42bn annual opportunity ▪ 2,850 GWhs / ~$340bn annual market by 2040 ▪ Critical
Slide 8: Company Overview
Company Overview
Slide 9: Eos clean energy storage
Eos clean energy storage 9 Founded in 2008 From the beginning, Eos has been committed to designing and deploying a safe, scalable, sustainable, and efficient system. We will not rest until the world has sustainable and affordable energy on demand. Our quest Our ethos Our drive We believe in the powe
Slide 10: Eos Value Proposition
10 Eos Value Proposition Simple Sustainable • 5 Core commodities in a simple configuration Scalable • 7 - Easy steps of manufacturing • 12 months or less set up time • Readily available commodities used in other industries • No supply chain constraints Smart • Modular product configuration • Easily
Slide 11: Technology Roadmap
Technology Roadmap 11 Gen. 1.0 commercial prototype Gen. 2.0 beta system released Operating Gen. 2.0 projects Gen. 2.3 program launch Gen. 3.0 program launch Gen 1.0 performance Power .5 kW Energy 2.1 kWh RTE 65 - 70% Gen 2.0 performance Power 100 kW Energy 300 kWh RTE 70 - 75% Gen 2.3 performance P
Slide 12: Simple, Efficient, Modular & Scalable Manufacturing
12 • <$30m Capex required to build one GWh facility • 180 days to roll out a new production line Welded Collectors Heat & Treat Titanium Glue Graphite Felt Welding Infra - red Frame Mix Electrolyte Fill Batteries Containerize + BMS Simple, Efficient, Modular & Scalable Manufacturing Company plans to
Slide 13: Lower Customer Risk, Increased ROI, Added Safety
Lower Customer Risk, Increased ROI, Added Safety Depth of Discharge $52/kWh CapEx Savings Eos: Designed for 100% utilization, no additional upsizing required Li - ion: 80% DoD requires 20% more batteries to deliver the same kWh Ride Through Grid Outages ☐ Availability Eos: Continue charging even whe
Slide 14: Superior Technology Delivers Competitive Advantages Over Li-ion
Superior Technology Delivers Competitive Advantages Over Li - ion Safer, environmentally friendly and cheaper energy storage solution VS SCALABLE ✓ Low cost aqueous zinc ✓ Unrestricted depth of discharge ✓ Flexible modular configurations, AC or DC coupled, outdoor or indoor ✓ Plug & play design with
Slide 15: Market Segments
Market Segments Application Value Pipeline Clients ▪ Co - location of battery storage with renewable generation assets ▪ Shift renewable power to when the grid needs it most ▪ Avoid curtailment and enable higher utilization of clean power assets ▪ T&D deferral and Grid Resilience ▪ Shaving peak load
Slide 16: Addressable Market
Addressable Market
Slide 17: US Energy Ecosystem at Inflection Point
US Energy Ecosystem at Inflection Point 17 Energy storage to provide essential infrastructure for renewable energy proliferation and grid congestion management ________________________ Source: BNEF; International Renewable Energy Agency; Solar Energy Industries Association Grid Congestion Renewable
Slide 18: Large and Growing Global Market
Large and Growing Global Market 18 Global energy storage market estimated to grow to 1,095 GW and 2,850 GWh by 2040 attracting $660 billion of investment – U.S. re presents 15%+ of global market ________________________ Source: BNEF. (1) Investment decline between 2024 and 2026 due to difference in
Slide 19: Segment Level Growth
Segment Level Growth 19 Eos is well positioned to take advantage of the fastest growing energy storage market segments ________________________ Source: BNEF Energy Storage Market Segment 2020 2024 CAGR Renewable Load Shifting (MWh) 8,180 34,159 Ÿ 43% Locational Capacity (MWh) 9,265 28,787 Ÿ 33% Indu
Slide 20: Pipeline and Growth Strategy
Pipeline and Growth Strategy
Slide 21: Eos Growth Gameboard
Eos Growth Gameboard 21 Behind the Meter: Industrial Optimization • ~8 - 10 MWh • $1m – 4m 6 to 12 Months • End user/channel partner relationship • Economics driven • Not RFP driven • 1,740 MWh Behind the Meter: Indoor Urban 6 to 12 Months • ~4 - 5 MWh • $1m – 2m • Safety and limited risk paramount
Slide 22: Actively Managed Orders & Pipeline
2021 37% 2022 52% 2023 5% 2020 6% 14.5 GWh Actively Managed Orders & Pipeline 22 130+ potential clients engaged addressing short - term and medium - term priorities Addressable Market FTM Renewable Integration 53% FTM Location Capacity 35% BTM Industrial Optimization 11% BTM Indoor Urban 1% USA 78%
Slide 23: Sales execution
Sales execution 23 2021 2022 Sales volume (Shipments in MWh) 60% 40% 39% 61% Pipeline coverage of orders to go 11X Aligning manufacturing & Maintaining Shipments in Line with Orders Eos’s operational and manufacturing team is working closely with sales personnel to accommodate customer orders and ma
Slide 24: Financial Overview
Financial Overview
Slide 25: Projected Income Statement
Projected Income Statement $m 2020 2021 2022 2023 2024 Base 2024 Growth Sales Volume (MWh) 13 260 1,511 4,620 6,786 11,654 % growth - 481.9% 205.7% 46.9% 152.2% Total revenue 2.5 50.3 268.6 735.5 994.9 1,700.4 % growth - - 434.2% 173.8% 35.3% 131.2% % market share 0.1% 0.9% 3.5% 7.1% 8.7% 14.9% Tota
Slide 26: Applications Generate Multiple Revenue Streams
Applications Generate Multiple Revenue Streams 26 Financing Ongoing Revenue Streams Maintenance Behind the Meter Applications Front of the Meter Applications Sales One - time Revenue Streams Long - term Service Contracts Battery Management System Performance Monitoring Installation & Commission Cont
Slide 27: Business Combination Update
Business Combination Update
Slide 28: Base and growth case valuation scenarios
Base case scenario 2024 revenue multiple 2.0x 2.5x 3.0x 3.5x 4.0x Implied market cap $1,990 $2,487 $2,984 $3,482 $3,979 Implied 2024 Adjusted EBITDA multiple 13.3x 16.7x 20.0x 23.3x 26.7x Potential upside (base case) 1 3.8x 4.8x 5.7x 6.6x 7.5x Growth case scenario 2024 revenue multiple 2.0x 2.5x 3.0
Slide 29: Transaction Overview
Transaction Overview ________________________ (1) Based on fully diluted shares outstanding at $10.00 share price. Excludes 9.08MM warrants outstanding, with a strike price of $1 1.50 per share. Assumes no redemption of BRPM II public shares. Earn out shares are issued when the share price equals or
Slide 30: Track Record of Value Creation – B. Riley Financial
49 70 90 208 173 190 322 423 652 612 265 584 1,027 1,508 1,516 2016 2017 2018 2019 Q2 2020 LTM Adjusted EBITDA Revenue Total Assets May-14 May-15 May-16 May-17 May-18 May-19 May-20 Track Record of Value Creation – B. Riley Financial ( Nasdaq:RILY ) ________________________ Source: Company filings an
Slide 31: Eos Energy Storage
Eos Energy Storage Investor Presentation September 2020
B. Riley Principal Merger Corp. II — SPAC Merger (September 2020) on 6ix