Capstone Green Energy Holdings Inc. · OTC:CGEH
Capstone Green Energy — Corporate Update (September 2023)
34 slides from Capstone Green Energy's corporate update, Sep 28, 2023
Slide 1: Go-Forward Plan
Smarter Energy for a Cleaner Future Go-Forward Plan Capstone Green Energy Corporation
Slide 2: Safe Harbor Disclaimer
Smarter Energy for a Cleaner Future 2 Safe Harbor Disclaimer This Presentation and any oral statements made in connection with this Presentation do not constitute an offer to sell, or a solicitation of an offer to buy, or a recommendation to purchase, any securities in any jurisdiction. Forward-Look
Slide 3: Agenda
Smarter Energy for a Cleaner Future 3 Agenda ▪ Company History ▪ Restructuring Overview ▪ 10-K & 10-Q Update ▪ Capitalization, Projections, & Valuations ▪ Market Outlook ▪ Going Forward ▪ Q&A
Slide 4: Company History
Smarter Energy for a Cleaner Future Company History 4 Robert Flexon Executive Chairman Interim President & Chief Executive Officer
Slide 5: Capstone Green Energy History
Smarter Energy for a Cleaner Future 5 Capstone Green Energy History Capstone Green Energy is a world leading low-emission smart energy solutions provider focused on lowering carbon footprint, increasing cost efficiency, and building resiliency for businesses. Capstone is committed to enhancing its c
Slide 6: Value Proposition
Smarter Energy for a Cleaner Future 6 Value Proposition Features Benefits Experience Capstone Microturbines Wants Concerns Goals Customer Reliability and Resiliency Capstone microturbines are known for their reliability and durability. They are designed for continuous operation with minimal maintena
Slide 7: Global Distribution Partners
Smarter Energy for a Cleaner Future 7 Global Distribution Partners 53 Distributor Partners 7 National Account & OEMs 150+ Distributor Locations 9 years Distributor Average Tenure US/Canada Latin America, Caribbean APAC, CIS, Russia Middle East & Africa Europe 7 19 9 10 15
Slide 8: Restructuring Overview
Smarter Energy for a Cleaner Future Restructuring Overview 8 Robert Flexon Executive Chairman Interim President & Chief Executive Officer
Slide 9: Restructuring Overview
Smarter Energy for a Cleaner Future 9 Restructuring Overview ▪ Pre-Packaged Chapter 11 Plan. ▪ The only impaired creditor is the senior secured lender of the $53 million Amended and Restated Note. ▪ All vendors and unsecured creditors will receive payment in full in the ordinary course. ▪ Prepetitio
Slide 10: Prepetition Organizational Structure
Smarter Energy for a Cleaner Future ▪ Capstone Turbine Financial Services, LLC owns a 30% stake in a joint venture (Capstone Energy Finance, LLC), which will not be a Debtor. ▪ The joint venture does not conduct business operations and owns de minimis cash. 10 Prepetition Organizational Structure Cu
Slide 11: Restructuring Transactions
Smarter Energy for a Cleaner Future ▪ Capstone will effectuate a series of restructuring transactions (the “Restructuring Transactions”) in connection with the Chapter 11 Cases. ▪ Capstone will form a new entity to be the operating company, referred to as “New Subsidiary.” ▪ Capstone Turbine Interna
Slide 12: Go-Forward Organizational Structure
Smarter Energy for a Cleaner Future Pre-Restructuring Corporate Structure Post-Restructuring Corporate Structure 12 Go-Forward Organizational Structure Capstone Green Energy Corporation Legacy operating public company wholly owned/privately held subsidiary of Goldman lenders. Previous non-debtor ent
Slide 13: DIP and Exit Facilities, and Treatment of Purchaser's Claims
Smarter Energy for a Cleaner Future ▪ Capstone’s only pre-petition funded debt consists of $53 million principal outstanding under the Amended & Restated Note Purchase Agreement by and among Capstone and Purchaser. ▪ Purchaser will also be the DIP Lender and will have both prepetition secured claims
Slide 14: 10-K & 10-Q Update
Smarter Energy for a Cleaner Future 14 10-K & 10-Q Update ▪ The Audit Committee and Company Management reviewed past “Bill and Hold” transactions and other matters. ▪ Concluded that restatement of prior financials are necessary. ▪ Issued 8-K to notify non-reliance on previously issued financial stat
Slide 15: Capitalization, Projections, & Valuation
Smarter Energy for a Cleaner Future Capitalization, Projections, & Valuation John Juric Chief Financial Officer
Slide 16: Terms of New Debt
Smarter Energy for a Cleaner Future 16 Terms of New Debt Capstone Secured Credit Facility Shift Through Restructuring $ in Thousands Petition Date DIP Period Exit Credit Facility Notes Payable $ 50,000 Notes Accrued Interest & Fees $ 3,791 Term Loan Roll-over Debt $ 15,000 $ 5,000 DIP Advance $ 3,00
Slide 17: Pro Forma Capitalization & Valuation
Smarter Energy for a Cleaner Future 17 Revolving Credit Facility (1) Based on September 15, 2023, 15 Day Average VWAP. (2) Based on current capitalization, adjusted for pro forma debt balances. (3) Based on Income Approach DCF Pro Forma Capitalization & Valuation Pro Forma Capitalization Thousands,
Slide 18: Preferred Units Terms
Smarter Energy for a Cleaner Future 18 Preferred Units Terms ▪ Reorganized PrivateCo will be issued Preferred Units of New Subsidiary ▪ Will represent 37.5% of the Equity Value ▪ Non-dilutable ▪ Rank senior to Common Units ▪ Certain Approval Rights ▪ The estimated Purchase Price of Preferred Equity
Slide 19: Financial Projections
Smarter Energy for a Cleaner Future Select Income Statement Projections ($ in thousands) Stub Period March FY 24 (1) Year End March FY25 Year End March FY26 Year End March FY27 Revenue $ 43,579 $ 107,575 $ 114,632 $ 123,133 Gross Margin 11,628 29,276 34,236 37,657 Gross Margin as a % of Revenue 26.7
Slide 20: Market Outlook
Smarter Energy for a Cleaner Future Jen Derstine Vice President of Marketing & Distribution Market Outlook
Slide 21: Structural Market Shifts Benefit Capstone
Smarter Energy for a Cleaner Future Prime power customers will focus on how solutions can adapt to low carbon / zero emission requirements and deliver results to their businesses for 20+ years ITC and Energy Policy tailwinds provide significant levels of government investment, incentivizing customer
Slide 22: Market Outlook
Smarter Energy for a Cleaner Future 22 Market Outlook Renewables Oil & Gas Energy Efficiency Microgrids EV Charging Decarbonization drives biogas/H2 development, new fuels like rDME and renewable LPG. Capstone’s broad fuel range and H2S tolerance. Challenges in electrifying thermal applications, gas
Slide 23: EaaS System Growth
Smarter Energy for a Cleaner Future 23 EaaS System Growth Healthier Margins with Constant and Predictable Revenue Streams E a a S S y s t e m s A t- a -G l a n c e F Y 2 4 A c t i v i t y 15.3 MW New & Renewed EaaS Contracts 12.7 MW EaaS Shipped 23.4 MW Leased Units with Our Option to Buy Our EaaS f
Slide 24: Section – Energy Credits
Smarter Energy for a Cleaner Future 24 Section 48 – Energy Credits ▪ Capstone believes we meet US manufacturing requirements to qualify projects for domestic content bonus ▪ Many distributors have energy community areas within their territory (see appendix for map) ▪ Meeting prevailing wage/apprenti
Slide 25: FY24 Sales Highlights
Smarter Energy for a Cleaner Future 25 FY24 Sales Highlights New System Bookings Q1FY24 to Present S A L E S S H I P P E D T H R U 9 / 1 3 11.8 MWs E a a S / S A L E S D E P L O Y E D I N F Y 2 4 82 UNITS A C R O S S F O U R C O N T I N E N T S 19 COUNTRIES M I C R O T U R B I N E U N I T S S O L D
Slide 26: Looking Ahead
Smarter Energy for a Cleaner Future 26 Looking Ahead The Future is Bright Strong Pipeline awaiting clarity on business health and restructuring Dedicated Distributor Network expanding, growing and maturing Existing Backlog of sales, attractive incentives and continued high demand for EaaS Diverse Gr
Slide 27: Going Forward
Smarter Energy for a Cleaner Future Going Forward 27 Robert Flexon Executive Chairman Interim President & Chief Executive Officer
Slide 28: Building a Better Future
Smarter Energy for a Cleaner Future 28 Building a Better Future ▪ Financial Restructuring ▪ Q3FY24 emergence ▪ Balance sheet and liquidity management ▪ Operational Restructuring ▪ Building efficiency by redesigning our business processes ▪ Resiliency and reliability of our business ▪ Better serving
Slide 29: Q&A
Smarter Energy for a Cleaner Future Q&A
Slide 30: Walt Disney quote
It seems to me we have a lot of story yet to tell Walt Disney “ “
Slide 31: Appendix
Smarter Energy for a Cleaner Future Appendix 31
Slide 32: Adjusted EBITDA Schedule
Smarter Energy for a Cleaner Future 32 Adjusted EBITDA Schedule Stub Period, Year End March 24 FY March 25 FY March26 FY March 27 Net Income $ (2,143) $ 2,776 $ 7,319 $ 10,740 Interest Credit Facility 1,509 4,286 4,702 4,702 Depreciation / Amortization 1,311 3,169 3,566 4,136 Non-Cash Compensation 5
Slide 33: Energy Community Tax Credit Map
Smarter Energy for a Cleaner Future 33 Energy Community Tax Credit Map U.S. Areas That May Qualify for Energy Community ITC Bonus
Slide 34: Thank you for your time!
Smarter Energy for a Cleaner Future “ Time to take the power in your hands. 16640 Stagg Street | Van Nuys, CA | 91406 USA www.capstonegreenenergy.com Thank you for your time!
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