Slide 1: Long Duration Energy Storage Systems: Energy Storage for a Cleaner Future
EXHIBIT 99.2 Long Duration Energy Storage Systems Energy Storage for for a Cleaner Future a Cleaner Future CONFIDENTIAL APRIL 2021EXHIBIT 99.2 Long Duration Energy Storage Systems Energy Storage for for a Cleaner Future a Cleaner Future CONFIDENTIAL APRIL 2021
Slide 2: Disclaimers
Disclaimers This presentation (this “Presentation”) was prepared for informational purposes only to assist interested parties in making their own evaluation of the proposed transaction (the “Transaction”) between Acon S2 Acquisition Corp. (“ACON”, “we”, or “our”) and ESS Inc. (“ESS”). This Presentat
Slide 3: Game Changing Technology: The Power Grid of the Future
Game Changing Technology The Power Grid of the Future – Feasible Today STABLE. SECURE. CLEAN. CONFIDENTIAL 2 2Game Changing Technology The Power Grid of the Future – Feasible Today STABLE. SECURE. CLEAN. CONFIDENTIAL 2 2
Slide 4: Transaction Overview
Transaction Overview Category Catalyst in Long Duration Energy Storage Solutions Leadership § Founded in 2011 to enable the stable, decentralized ESS and decarbonized power grid of the future § ACON S2 (NASDAQ: STWO): a special purpose Offering Size acquisition company § $250 million cash in trust §
Slide 5: We Must Reimagine the Grid
We Must Reimagine the Grid Aging Infrastructure Severe Weather Events Rising Renewables Penetration Growing Energy Demand CON CON CONF F FIIID D DEN EN ENT T TIIIA A AL L L 4 4We Must Reimagine the Grid Aging Infrastructure Severe Weather Events Rising Renewables Penetration Growing Energy Demand CO
Slide 6: Energy Transition is Building Momentum
Energy Transition is Building Momentum Stakeholders are aligned to accelerate the energy transition towards a more sustainable future Consumer “Anybody who has the breakthrough on battery storage is Preferences going to have the key to the future” John Kerry (U.S. Special Presidential Envoy for Clim
Slide 7: ESS is a Game Changer in Long Duration Energy Storage
ESS is a Game Changer in Long Duration Energy Storage Enables up to 100% Allows Proliferation Stabilizes the Grid Renewable Penetration of Microgrids CON CONF FIID DEN ENT TIIA AL L 6ESS is a Game Changer in Long Duration Energy Storage Enables up to 100% Allows Proliferation Stabilizes the Grid Ren
Slide 8: ESS: A Category Defining Investment Opportunity
ESS: A Category Defining Investment Opportunity 1 Large and Fast-Growing TAM: ~$56bn by 2027 growing at a 33% CAGR 1 Simple Yet Revolutionary Technology: Iron, salt and water; strong patent portfolio 2 2 Compelling Value Proposition: Highest performance, lowest cost and most sustainable 3 3 Low Risk
Slide 9: Market Opportunity
Market Opportunity CON CONF FIID DEN ENT TIIA AL L 8 8Market Opportunity CON CONF FIID DEN ENT TIIA AL L 8 8
Slide 10: What Is Long Duration Storage?
What Is Long Duration Storage? Low Cost to Enable Shift Supply to Meet Reliable Replacement of Alternatives Demand from 4 – 12 Hours (Grid Stability) (Peaker Plants) CON CON CON CONF F F FIIIID D D DEN EN EN ENT T T TIIIIA A A AL L L L 9 9What Is Long Duration Storage? Low Cost to Enable Shift Suppl
Slide 11: ESS Transforms the Value Proposition for Long Duration Storage
ESS Transforms the Value Proposition for Long Duration Storage What Customers Demand How ESS Transforms the Grid § Can replace coal and natural gas with solar and § Up to 12 hours wind power Longer Duration § Flexibility allows multiple revenue streams § Greater resiliency to unexpected events § Ste
Slide 12: Stabilize the Grid and Accelerate Renewables
Stabilize the Grid and Accelerate Renewables 1 US Renewable Energy Penetration (2015-2050) Renewable intermittency creates a 65% massive problem for the grid, 57% 47% particularly >25% penetration 40% 36% 31% 23% 15% § Carbon-free is the goal 2015 2020 2025 2030 2035 2040 2045 2050 § Intermittency a
Slide 13: Fortify the Grid for Climate Change
Fortify the Grid for Climate Change Climate change will result in more unpredictable weather events including extreme temperatures, 1 hurricanes and wildfires Texas Freeze ESS batteries operate efficiently in extreme hot and cold weather and still maintain grid stability Texas was seconds away from
Slide 14: Strong and Growing Demand for Energy Storage
Strong and Growing Demand for Energy Storage Cumulative Additions to Global Storage Capacity (GWh) Global Total Addressable Market ($bn) Front of the meter Front of the meter +43% 534 CAGR +33% Behind of the meter Behind of the meter CAGR $56 397 $46 301 +44% +32% $39 $28 CAGR CAGR 287 $33 $22 226 $
Slide 15: ESS Wins on Performance
ESS Wins on Performance 4-12 4h -r12 s hrs 1 16 6+ hrs h+ rs Compelling Performance Operational Flexibility <4 hrs < 4hrs Li-Ion Li-Ion ü Can cycle when needed with no impact to asset life Longer Unlimited cycles, no capacity loss ü Operates at peak efficiency Asset Life 1 6,000 cycles Li-Ion indepe
Slide 16: ESS Wins on Cost
ESS Wins on Cost 1 Illustrative Cost Comparison Versus Li-Ion How ESS’ Technology Delivers Superior Economics 4 hours 12 hours No scaling Competitive with Li-Ion at 4 hours; ESS wins thereafter $200/kWh $200/kWh Marginal cost of $20/kWh $200/kWh $80/kWh 2 Li-Ion LCOS at 4 hours vs. 12 hours Li-Ion $
Slide 17: ESS Wins on Sustainability
ESS Wins on Sustainability Sustainability Focus Areas Raw ingredients of iron, salt and water are Responsibly Sourced Materials earth-abundant 1 Global Warming Potential (GWP) 67% lower CO emissions than Li-Ion 2 Contains no toxic materials and Recyclability 2 requires no special permits for disposa
Slide 18: ESS is a Category Defining Technology for Long Duration Storage
ESS is a Category Defining Technology for Long Duration Storage Vanadium, Sodium Compressed Pumped Li-Ion Li Metal Zinc Bromine Sulfur Air Hydro Low cost at 4 – 12 hours 1 Field proven Earth abundant materials Unlimited cycling Zero capacity fade Wide operational temperature range Environmentally su
Slide 19: ESS Technology is Proven and Insured
ESS Technology is Proven and Insured Munich RE Aon One Beacon Insurance 10-year extended Investment-Grade Surety and Corporate Bonding warranty covering Warranty battery modules Growing project surety capacity Warranty continuity Investment-Grade insurance provides Project Insurance additional suret
Slide 20: ESS is Winning in the Market Today
ESS is Winning in the Market Today Customer in California Customer in Patagonia Use Case Use Case § Microgrid solutions required to mitigate Public Safety § Remote grid served by RoR hydro + diesel gensets Power Shutdown impacts § Storage systems required to minimize genset usage § Li-Ion solutions
Slide 21: Technology Overview
Technology Overview CON CONF FIID DEN ENT TIIA AL L 20 20Technology Overview CON CONF FIID DEN ENT TIIA AL L 20 20
Slide 22: Technological Breakthrough, Field Proven and Shipping Now
Technological Breakthrough, Field Proven and Shipping Now Technological R&D roadmap for breakthrough – 1 Iron Flow first conceived But “dirty” electrolyte Field proven ; S200 additional breakthroughs Proton Pump eliminates in 1970s caused rapid degradation shipping now to extend technology power fad
Slide 23: Robust Intellectual Property Portfolio
Robust Intellectual Property Portfolio ESS Critical Technology ESS IP Portfolio (-) (+) Power Module Electrode Electrode 125+ Patents Granted Current Collector and in Pipeline Pending Applications Proton Pump Pressure Plate Undisclosed Number of Trade Secrets and Identified Patents Conductive Porous
Slide 24: Business Overview
Business Overview CON CONF FIID DEN ENT TIIA AL L 23 23Business Overview CON CONF FIID DEN ENT TIIA AL L 23 23
Slide 25: Strong Team Positioned to Grow the Business
Strong Team Positioned to Grow the Business Management Team CRAIG EVANS ERIC DRESSELHUYS AMIR MOFTAKHAR DR. JULIA SONG Chief Executive Officer President & Founder Chief Financial Officer CTO & Founder (March 2021) HUGH MCDERMOTT MATT BERKEBILE BRIAN LISIECKI RANDY LEWIS Senior Vice President Vice Pr
Slide 26: One Technology – Two Products of Different Scale
One Technology – Two Products of Different Scale Energy Warehouse at Jean Airport ™ ™ Energy Warehouse Energy Center § Behind the meter solution§ Front of the meter solution § 50kW – 90kW configurable range § Customizable configuration range § First commercial deployment in 2015 § Customer trials st
Slide 27: Validated by a Blue-Chip Customer Base
Validated by a Blue-Chip Customer Base Utilities IPPs/Developers Commercial & Industrial EW EC EW EC EW EC § Peaker replacements§ Peaker replacements§ Energy cost savings § T&D upgrade deferrals§ Resource adequacy & grid reliability§ Operational resiliency Demand Drivers § Wildfire resiliency§ 24/7
Slide 28: Strategy to Scale Globally
Strategy to Scale Globally ESS’ ability to grow is supported by ü Relationships in Europe and Asia-Pacific Manufacturing Capacity (MWh) ü Automated manufacturing process ~16,000 ü Supply chain of readily sourced components and raw materials ~10,000 ~5,000 ~2,000 ~150 2021 2022 2023 2024 2025 2026 15
Slide 29: 97% Less Capital Required – Ready to Scale Globally
97% Less Capital Required – Ready to Scale Globally Simple, automated Simple, Low-cost Production in the USA ESS manufacturing line $in millions/GWh of Battery Module Production Capacity ~$140 Expensive, complex Li-Ion battery manufacturing line ~$4 Li-Ion competitor CON CONF FIID DEN ENT TIIA AL L
Slide 30: Capital Investment Will Enable Rapid Expansion
Capital Investment Will Enable Rapid Expansion Increase Expand Sales Footprint Net Cash for Growth Hire new sales team members and Manufacturing Capacity expand production footprint into 1 Fully funds capital plan to increase ~$493m Europe and Australia capacity from >250MWh in 2021 to 16GWh by 2025
Slide 31: Financial Forecast
Financial Forecast CON CONF FIID DEN ENT TIIA AL L 30 30Financial Forecast CON CONF FIID DEN ENT TIIA AL L 30 30
Slide 32: High Quality Pipeline
High Quality Pipeline ™ Projected Pipeline for Energy Center Global Identified Opportunities ™ and Energy Warehouse Qualifying Negotiating Qualifying 28% 40% Booked 100% Awarded Negotiating Negotiating 66% 40% Awarded Awarded Booked 20% 6% 5% ™ Energy Center Opportunities 2021E 2022E 2023E ™ Energy
Slide 33: ESS' Robust Revenue Growth
ESS’ Robust Revenue Growth Projected Revenue by Product Offering ($in millions) § Growth accelerates as Energy $3,562 Center deployments start in EC EW EF Services 2023 $2,572 § Forecast driven by identified pipeline of near-term opportunities $1,645 § ESS expansion into Australia (2023) and Europe
Slide 34: ESS Delivers Compelling Profitability
ESS Delivers Compelling Profitability Projected Gross Margin ($in millions) Projected EBITDA ($in millions) $1,332 $1,059 $950 $739 $508 $360 $217 $131 $47 ($13) ($20) ($2) ($43) $2 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 16% 27% 31% 37% 37% 1% 16% 22% 29%
Slide 35: Potential Upside to Business Plan
Potential Upside to Business Plan New US federal and state policies on infrastructure, decarbonization and national security Emerging mandates in EU and Asia-Pacific on decarbonization and storage Demand impact of USTDA, Power Africa, UNDP and World Bank targets Further economies of scale and techno
Slide 36: Valuation Overview
Valuation Overview CON CONF FIID DEN ENT TIIA AL L 35 35Valuation Overview CON CONF FIID DEN ENT TIIA AL L 35 35
Slide 37: Detailed Transaction Overview
Detailed Transaction Overview Transaction Overview Illustrative Pro Forma Valuation and Sources & Uses ($ in millions, except per share data; shares in millions) Total Enterprise Value Summary § Pro forma enterprise value of $1,072 million (0.7x 2025E Revenue) Pro forma shares outstanding 156.5 § $4
Slide 38: Selected Public Comparable Universe
Selected Public Comparable Universe Battery Storage Fuel Cell and Electrolyzers Renewable Technologies Supporting Supporting Supporting Considerations Considerations Considerations Characteristics Characteristics Characteristics ü Growth stage û Primarily ü Technology û Not reliant on ü Growth is ti
Slide 39: Selected Operational Benchmarking
Selected Operational Benchmarking Battery Storage Fuel Cell and Electrolyzers Renewable Technologies Average: 58% Average: 25% Average: 121% 594.5% 170.4% 105.8% 72.0% 53.7% 47.3% 43.4% 23.8% 15.3% 17.2% NM Average: 31% Average: 26% Average: 32% 40.7% 37.4% 35.3% 33.4% 31.3% 30.3% 25.0% 24.3% 22.5%
Slide 40: Selected Valuation Benchmarking
Selected Valuation Benchmarking Battery Storage Fuel Cell and Electrolyzers Renewable Technologies Average: 3.3x Average: 9.8x Average: 12.1x 24.6x 14.6x 14.2x 7.8x 7.6x 4.7x 4.6x 3.8x 2.8x 0.7x 0.6x 2025E 2027E 2024E 2024E 2024E 2024E 2024E 2024E 2021E 2021E 2021E Average: 46.5x Average: 13.3x Aver
Slide 41: Transaction Priced at a Discount to Peer Multiples
Transaction Priced at a Discount to Peer Multiples Implied EV Based on Selected Comparable Companies Trading Transaction Value ($ in millions; implied future and discounted EV rounded to the nearest $5m) Implied Future EV Implied Discounted EV Implied Post-Money EV $8,225 84% discount $3,965 $4,935
Slide 42: Energy Storage for a Cleaner Future
Energy Storage for a Cleaner FutureEnergy Storage for a Cleaner Future
Slide 43: Appendix
Appendix CON CONF FIID DEN ENT TIIA AL L 42 42Appendix CON CONF FIID DEN ENT TIIA AL L 42 42
Slide 44: PF Summary Financials
PF Summary Financials Values in 000s 2021 2022 2023 2024 2025 2026 2027 Revenue Product - EW Purchase & Lease $2,381 $22,679 $34,520 $47,203 $66,328 $94,808 $135,248 Product - EC Purchase– $14,224 $256,249 $696,998 $1,447,504 $2,222,420 $2,986,242 Product - EF Purchase–– $4,177 $28,696 $41,797 $50,5
Slide 45: ACON S2 Overview
ACON S2 Overview Strategic Sustainability Platform for Success § ACON S2 Acquisition Corp. (NASDAQ: STWO) ü Domain Expertiseü Public Markets § $250mm IPO in September 2020 ü Sustainabilityü Governance § Criteria: authentic sustainability leader, significant value creation potential, strong competiti
Slide 46: Energy Warehouse Overview
™ Energy Warehouse Overview Product Summary Product Deployments § Behind the meter solution § Containerized design for turnkey delivery § First commercial deployment in 2015 § Fast to build and commission § Generation II launched in 2020 Current Specifications Stone Edge Farms USACE UCSD (CA) 10 kW/
Slide 47: Energy Center Overview
™ Energy Center Overview Product Summary § Front of the meter solution§ Modular design for utility- class § Customer trials starting in 2021§ Power capacities starting at 3MW § “Battery in a Building” platform Building Blocks for Existing Products Current Specifications Configurable Range: Customiza