Plug Power, Inc. · NASDAQ:PLUG
Plug Power — Investor Day (June 2023)
60 slides from Plug Power's investor day presentation, Jun 14, 2023
Slide 1: Analyst Day
Analyst Day Andy Marsh, CEO June 14, 2023 Copyright 2023, Plug Power Inc.
Slide 2: Forward-Looking Statements & Disclaimer
Forward-Looking Statements & Disclaimer This presentation will include “forward-looking statements” about Plug Power Inc. (“Plug”). These forward-looking statements will contain projections of Plug’s future results of operations, or of Plug’s business or financial position, or other forward-looking
Slide 3: We are building, selling and deploying real products, today
We are building, selling and deploying real products, today! 3
Slide 4: Plug Green Hydrogen Plant – Woodbine, Georgia
Plug Green Hydrogen Plant – Woodbine, Georgia 4
Slide 5: Plug Green Hydrogen Production Sites in Finland
Plug Green Hydrogen Production Sites in Finland (FID 2025/2026) • Production of 850 tons per day of green hydrogen • 2.2 GW electrolyzer interconnection by the end of the decade • 1,000 direct jobs and 3,000 indirect jobs Kokkola • Contribute to Finland’s target Electrolysis Capacity: 1GW to be carb
Slide 6: 1MW and 5MW Plug Electrolyzers – Global Adoption
1MW and 5MW Plug Electrolyzers – Global Adoption 6
Slide 7: Plug's 1GW Plant: Green Hydrogen at Work
Plug’s 1GW Plant: Green Hydrogen at Work ELX425D ELX2125D ELX4250D 7
Slide 8: Large-Scale Stationary Power: Manufacturing Ramping
Large-Scale Stationary Power: Manufacturing Ramping 8
Slide 9: Plug for Mobility Applications
Plug for Mobility Applications 9
Slide 10: Robust Manufacturing in New York State
Robust Manufacturing in New York State Vista Tech Park, NY Rochester, NY 10
Slide 11: We are at an inflection point
We are at an inflection point • Revenue will be between $1.2B - $1.4B • Gross margins positive • Broad span of products with leading edge manufacturing capabilities • 25% of our revenue will be European this year • 60% of our revenue will be non-material handling • A policy climate strongly supporti
Slide 12: The Plug World we are Building for 2030
The Plug World we are Building for 2030 Over 2,000 T of hydrogen per day Markets and • • 100,000 HyVia vans on the road • 1GW of stationary products deployed opportunities • Shipping 5GW of electrolyzers per year that allow us • 500K fuel cell powered forklift trucks to continue • Manufacturing capa
Slide 13: Green Hydrogen at Work
pl, Green Hydrogen at Work™
Slide 14: Applications Business Unit
Applications Business Unit Jose Luis Crespo, General Manager Fuel Cell Applications/Global Accounts Copyright 2023, Plug Power Inc.
Slide 15: Applications business projecting to grow 45% YOY in 2023
Our Applications business is projecting to grow by 45% YOY in 2023 propelled by: The value our technology brings to customers Low carbon and global electrification trends
Slide 16: Material Handling drivers for growth
Material Handling drivers for growth Plug’s productivity value proposition is getting stronger Grid constraints are now part of our value proposition Plug’s mid-market (around 50Kg/day) solution In 2023 already signed 2 new pedestal customers in Europe (Stef and Asda) and 1 new pedestal customer in
Slide 17: Other Mobility Activities
Other Mobility Activities Successful introduction of the Hyvia Van in Europe Working with Geely and SK in Korea on busses Yard tractor pilots in Q2 17
Slide 18: Stationary Power
Green EV Charging Stationary Power - Large fleets with grid availability & deployment Grid constraints & timing constraints regulations driving increased demand for zero-emission H2 generators Prime Power +$30M in the first year - Utility Grid Support, Energy Arbitrage, Peaker Plants of product intr
Slide 19: +$1T Addressable Market
+$1T Addressable Market Enhanced Green EV Charge Prime Power Back-Up Power $30B $1B BEV $1T Grid Generator Fleet Charge Parallel TAM TAM TAM 19
Slide 20: Proliferation of electric vehicles quote
“The proliferation of electric vehicles will be the biggest disrupter to the electric grid since the invention of the air conditioner.” - Smart Electric Power Alliance
Slide 21: 230 TWh
Putting that in perspective… 230 TWh Annual energy demand from electric vehicles in 2030 230 = 21 terawatt-hours million new homes * Source: McKinsey The US builds approximately 1.3M homes per year 21
Slide 22: Green EV Charging
Green EV Charging Grid constrained locations Hydrogen Power Fleet Charging
Slide 23: For Plug this is a Green H2 business
For Plug this is a Green H2 business 1MW generator consumes 65Kg/hr Continued Power: 1.5T/day EV Charging 10hrs/day: 650Kg/day
Slide 24: Energy Vault selects Plug Power to Supply 8 MW of Hydrogen Fuel Cells
Energy Vault selects Plug Power to Supply 8 MW of Hydrogen Fuel Cells as part of hybrid microgrid back-up system for PG&E and the city of Calistoga. - Customer: - MW: 8.5 - Duration: 48 up to 96 hours - COD: June 2024 24 © ENERGY VAULT - ALL RIGHTS RESERVED - CONFIDENTIAL Enabling a Renewable World
Slide 25: Plug Power and Energy Vault sign MOU
Plug Power and Energy Vault sign MOU to accelerate the deployment of economical and sustainable long duration energy storage solutions - Plug selects Energy Vault as the integrator of choice for its customers that demand long duration storage and micro-grid solutions - Energy Vault will license to P
Slide 26: © ENERGY VAULT – ALL RIGHTS RESERVED - CONFIDENTIAL Enabling a Renewable World
26 © ENERGY VAULT – ALL RIGHTS RESERVED - CONFIDENTIAL Enabling a Renewable World 26
Slide 27: NRGV: the only pure play storage company with full coverage of durations
NRGV: the only pure play storage company with full coverage of durations (S-L-XL) under the same tech neutral Energy Mgmt Software Short Duration Long Duration Multi-Days 27 © ENERGY VAULT - ALL RIGHTS RESERVED - CONFIDENTIAL Enabling a Renewable World
Slide 28: Exponential growth fueled by tech-neutral solutions approach
Exponential growth fueled by the tech-neutral solutions approach validated by largest utilities and IPPs - 40% growth q/q in the most recent Q1 2023 results in Project Awards and overall near term Sales Funnel 28
Slide 29: Green Hydrogen at Work
pl, Green Hydrogen at Work™
Slide 30: Energy Business Overview
Energy Business Overview Sanjay Shrestha, CSO and General Manager of Energy Business Copyright 2023, Plug Power Inc.
Slide 31: Controlling the Green Hydrogen Ecosystem
Controlling the Green Hydrogen Ecosystem Renewable Electricity Hydrogen Generation Delivery and Storage – Plug Cryo Electrolyzers 10 MW On-road Tankers Mobile Refueler 5 MW 1 MW Liquefiers Stationary Tanks 30 TPD PPA Agreements 15 TPD Green Hydrogen Network Portfolio of offerings and generation asse
Slide 32: Peachtree Green Hydrogen Plant - Camden County, Georgia
Peachtree Green Hydrogen Plant - Camden County, Georgia Jul 2022 Sep 2022 Dec 2022 Mar 2023 • 15 TPD LH2 (Future expansion to 30 TPD) May 2023 Night shift • Grid connected • In-person sales showcase: product portfolio in action, customer training, construction details and planning Pipe racks • Desig
Slide 33: Path to 500 TPD by 2025
Path to 500 TPD by 2025 2023 2023 YE 2025 – 500 TPD Projects Currently Under Construction and In Operation New York New York Midwest Tennessee Tennessee Southwest Texas II Texas Georgia Texas Georgia Louisiana Gulf Coast Louisiana 33
Slide 34: Plug's Hydrogen Delivery Network and Logistics Capabilities
Plug’s Hydrogen Delivery Network and Logistics Capabilities 16 GH2 tube trailer deliveries required for every 1 LH2 trailer • Delivery economics come down to demand: how much hydrogen are you consuming daily and how far do you need to transport it? • Plug operates a robust hydrogen delivery network
Slide 35: Green Hydrogen Generation Network Beyond 2025
Green Hydrogen Generation Network Beyond 2025 Pacific NW Further Geographic, Delivery, Supply and Application Diversity • Optimization of plant and Midwest system design New York • Application of engineering California Mountain West knowledge from initial portfolio of projects • 1st “kiloton-scale”
Slide 36: Generation Roadmap to 2030
Generation Roadmap to 2030 Hydrogen generation sites • One first site announced in Antwerp Path to 300TPD by 2027 • 2 GW-scale sites announced in Finland + 250 MW site 50 TPD by year-end 2025 • Close to 20 sites under development throughout Europe 120 TPD by year-end 2026 • 8-10 sites from 3rd-parti
Slide 37: Energy Business – Key Objectives
Energy Business – Key Objectives Electrolyzers: • Successfully execute on existing backlog of product and large project business • Build strong bookings for both product and large project business globally Cryogenic Business: • Strong growth in liquefier, hydrogen trailer and tanker businesses Green
Slide 38: Green Hydrogen at Work
pl, Green Hydrogen at Work™
Slide 39: Electrolyzer Discussion
Electrolyzer Discussion Bruno Forget VP, Strategy & Operations Management Copyright 2023, Plug Power Inc.
Slide 40: Products by Scale of Opportunities
Products by Scale of Opportunities XL Product In Development ELX425D ELX2125D ELX4250D 40
Slide 41: Speed, Capability & Capacity
Deployments Already Producing Globally Until the end of this decade, it is all about Speed, Capability & Capacity! 41
Slide 42: Market Focus for ELX Scaling - Twelve Month to FID Opportunities >$4B
Market Focus for ELX Scaling - Twelve Month to FID Opportunities >$4B 1 • 5MW Product success Industrial • Industry will go Green • EX: MOL, Ardagh, Apex, Hydro, Havrand, (Refining, Steel, Semi-Con) Irving, India Refiners, Linde 1 Green Chemicals • “Go big or Go home” • Ideal for ELX for Scaling & F
Slide 43: Plug's Supply Chain: Four key pieces
Plug’s Supply Chain: Four key pieces to Plug’s successful supply chain execution PGM (platinum group metals) CCM (catalyst coated membranes) Stacks Systems • Strategic partnership with • Strategic partnership with • In house manufacturing • Systems Engineering Johnson Matthey Johnson Matthey bandwid
Slide 44: Plug Uniquely Positioned To Deliver on Robust Prospects
Plug Uniquely Positioned To Deliver on Robust Prospects: Dedication to Green Hydrogen → Green H2 at work today ! • Plug created its own Demand (Worlds largest Merchant H2 user) • To satisfy this demand, Plug is building with its own technologies a Green H2 plant network* • Systems via Global Network
Slide 45: Green Hydrogen at Work
pl, Green Hydrogen at Work™
Slide 46: Finance Update
Finance Update Paul Middleton, CFO Copyright 2023, Plug Power Inc.
Slide 47: What Will Plug Look Like in 2026 and 2030?
What Will Plug Look Like in 2026 and 2030? 2026 $5B+ 30%+ 17%+ In Annual Sales Gross Margin Operating Income 2030 $20B+ 35%+ 20%+ In Annual Sales Gross Margin Operating Income A Global Hydrogen Ecosystem Market Maker Poised for Continued Substantial Growth Diversified Global Hydrogen Generating Sign
Slide 48: Plug's Building Blocks to Drive Growth
Plug’s Building Blocks to Drive Growth 1. Large global markets accelerating the hydrogen economy 2. Broad product platform and traction with industry leaders 3. Green hydrogen platform will be a new market and driver in other product lines 4. Investing in capabilities to expand industry and geograph
Slide 49: Hydrogen Investments Accelerating Revenue Growth
Hydrogen Investments Accelerating Revenue Growth ($s in billions) 25,000 CAGR ~50% 20,000 15,000 10,000 20+ >100% Growth over 2022 CAGR ~35% 5+ 5,000 5+ 1.5+ 0.06 0.7 1.4 0.03 0 2014 2022 2023 2026 2030 Plug Power, Inc. Non-consolidated JV's 49
Slide 50: Revenue Forecast Outlook
Revenue Forecast Outlook Applications – MH, Energy - Hydrogen Fuel, EV, stationary, etc. Electrolyzers, and Cryogenic equipment 2030 Market Tail Winds Regulatory Social Action Plans Cost Curve 2026 • Expand market channels - customers & partners ~$14.4B • Grow new markets – EV, Stationary Power, Aer
Slide 51: 2026 Target Business Model
2026 Continue innovation Target business model Vertical integration >30% gross margin Supply chain leverage ~13% OPEX leverage OPEX leveraging 51
Slide 52: Gross Margin Map from Point A to Point B
Gross Margin Map from Point A to Point B Equipment Service Fuel Improvements Improvements Improvements Higher volume = better Stack enhancements to Hydrogen generation vertical leverage of fixed cost & supply increase reliability and reduce strategy yields improved chain pricing costs margins Utiliz
Slide 53: Success Yielding Improved OI and Operating Cash Flows
Success Yielding Improved OI and Operating Cash Flows (% of Revenue) Drivers 2026 Target Business Model Sales & Operating Margin Growth Core Business is not Capex Intensive Operating Income 17% Developing the Supply Chain Enables More Operating Cash Flows >15% Effective Working Capital Strategies Gr
Slide 54: Substantial Growth
Electrolyzers Substantial Growth Stationary power 2023 On-road Green hydrogen Material handling 54
Slide 55: Key 2023 Execution
Key 2023 Execution • Successful execution of the electrolyzer business systems • Building systems at scale • Building green hydrogen plants beyond Georgia • Start ramp of stationary products for expansion in 2024 • Develop financing solutions for the hydrogen plants • Project equity and/or debt solu
Slide 56: Near Term KPIs for 2023 Forecast
Near Term KPIs for 2023 Forecast 1. Ramp ELX stack manufacturing to > 100 MW/month DONE (May 23 > 100) 2. Deploying first largescale stationary solutions Within 30 Days 3. Commission 1st green hydrogen plant (Georgia) Within 30 Days 4. Leverage MH pipeline to grow 2023 deployments by >50% DONE Pipel
Slide 57: Mid Term KPIs – 2nd half 2023
Mid Term KPIs – 2nd half 2023 1. Ramp ELX container supply chain/fabrication/customer deployment to deliver >27 systems 2. Close on cryogenic sales pipeline (liquefiers, mobile refuelers, stationary storage, etc.) 3. Close additional largescale MW/GW plant sales opportunities in next 90 days 4. Deli
Slide 58: 2023 Financial Projections
2023 Financial Projections Condition 2023 Revenue 2023 Gross Margin Comment Expected $1.4B $140M Key Items • Shipping 27 5MW electrolyzer Applications: $620M containers • Sell an additional 60T of Energy: $780M liquefiers • Sell one more 500MW plant in the next 90 days – many are in the works • Othe
Slide 59: Liquidity Planning – Targeting $1B annually Green H2 Investment
Liquidity Planning – Targeting $1B annually Green H2 Investment Leverage Opportunity • ~$6B Total assets Lucrative Project Portfolio • ~$2.5B Cash/ST investments • ~$1B Property/Equipment GA Plant Example • ~$9M Long-term debt • 15 TPD • ASP $6 to $8 /kg • PTC Opportunity • COGS ~ $2 /kg (net) • $35
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