Cbak Energy Technology, Inc. · NASDAQ:CBAT
Cbak Energy Technology — China BAK Battery — Investor Presentation (May 2010)
29 slides from Cbak Energy Technology's investor presentation, May 11, 2010
Slide 1: China BAK Battery, Inc. Investor Presentation
China BAK Battery, Inc. (NASDAQ: CBAK) Investor Presentation May 2010 BAK
Slide 2: Safe Harbor Statement
Safe Harbor Statement This contains “forward-looki ”. These relate to future events orto the Company's anticipated performance involving known and unknown risks, uncertainties and other factors that could cause the actual results, level of activities, performance or achievements of the Company to di
Slide 3: Stock at a Glance
Stock at a Glance Symbol: NASDAQ: CBAK Price (57/10): $1.80 Basic Shares Outstanding: 63.6 million Market Cap. (517/10): $114 million Revenues (FY10E) $220 million EBITDA (1HFY10) $9.0 million PIS (FY09): 0.6x Taxes, Depreciat >but its included solely for informational purposes. BAK
Slide 4: Investment Summary
Investment Summary Leading lithium-ion battery manufacturer in China Technology leader with leading R&D team and strong product pipeline State-of-the-art manufacturing facility with focus on quality Cost reduction through automation, process optimization to low-cost, hii Mid-term growth from cylindr
Slide 5: Company Overview
Company Overview BAK Shenzhen established in 2001 Leading producer of Li-ion batteries in China Corporate goal: Become a leading, global Li-ion battery supplier . enters in Vancouver, Shenzhen, and Tianjin; sales offices in Germany, nae and Austin, TX. + Approximately 6,000 employees FY09 Sales = $2
Slide 6: Corporate Milestones
Corporate Milestones 2K BAK International “*BAK Intemational (Tianjin) founded in Tianjin, China >xStarted supply to HI and other fist tier BAK Reverse takeover founded in kengaged + Appointed Shenzhen production of Li ron un Zou as China Phosphate cell famous brands’ “vr | Upgraded to > BAK awarded
Slide 7: Diversified Product Portfolio
S Diversified Product Portfolio Yea */
Slide 8: Lithium Battery Market
ithium Battery Market Global battery market: $36B in 2009 (Cascadia Capital) hium-ion battery n: 3B cells in 2009 (IIT) Lithium battery market forecasted to be $8B by 2015 (Pike Research) HEVIEV battery market could be $6- 43 billion in 2017 (Roland Berger) We were ranked #2 in China and #6 globally
Slide 9: Battery Types
Battery Types Nickel Cadmium Nickel Metal Lithium-ion Lithium Polymer Hydride Max Voltage (V) 12 12 36 36 Energy density Low ‘Medium High High Memory effect High Low Low Low Uses Toys, lights, power | Vehicles, power | Portable consumer | Small portable tools, cordless phones. tools electronics, veh
Slide 10: Diverse, Marquee Customers
Diverse, Marquee Customers Cylindrical fsSsus Leading US PC manufacturer Leading US PC Tier-1 notebook Prismatic Foxconn GiONEE Huawel Haier lenovo TTERH Polymer Samisk High Power
Slide 11: Extensive Sales Network
Extensive Sales Network EY09 Sales = $214.4 Million Nea inde OF ay Taiwan 2% PReHina 2% $5 (Stet, Manag Opens + CBAK sells products to international customers through direct sales, distributors and pack manufacturers
Slide 12: Integrated Tianjin Facility
v V v Vv Integrated Tianjin Facility Modern facility with pack and cell tines Center for Li-ion battery value chain, good government support Recruiting from local technical colleges Good transportation links Diverse applications includin power tools, UPS, light electric vehicle, HEV, PHEV and EV ayy
Slide 13: Automated Production Line
= Automated Production Line Yea °/ ay:
Slide 14: High Process Yields
High Process Yields 96.00% + san-co Dee00 ‘Anode Winding Fling Sorting coating Loser welding + Significant improvements in process yields in the past 12 months + Continuous performance improvement
Slide 15: Stringent Quality Control
2 “I Stringent Quality Control Ha s/ y Performance test + Four levels of quality control: Design + Process —» Material inflow —> Output + Zero defects tolerated during design and structuring + Material quality control to ensure quality + Final testing: capacity, voltage, visual defects and internal
Slide 16: Strong R&D Team
Strong R&D Team “+ BAK has the most advanced R&D center in Li-ion battery industry % Gained government recognition as post institutes and universities > Three dedicated R&D centers in Shenzhen, Tianjin and Vancouver > China R&D center is equipped with the most advanced facilities in PRC 20 years bat
Slide 17: BAK—Company in Transition
BAK—Company in Transition ¢ Started as low-cost, aftermarket producer * Transforming into an automated, high-quality producer with a broad product line * Strengthened management team globally * International presence BAK
Slide 18: Growth Strategy
Growth Strategy ayy + Strengthen R&D a Maintain share with existing customers and complete testing to receive orders from Tier-1s ities to maintain and advance (SS aay coeaD Sm TT Capture market for E-bike and EV segments Penetrate China EV/HEV market by selling to FAW, Chery with U.S. and Develop o
Slide 19: Strong Product Pipeline
Strong Product Pipeline Voltage | Capacity vo.| type FORESTRY Arras, 1_|tees0 [36 | 20 Ev 2 | 266s0HP | 32 | 22 HEV/PHEV ; —_—ra 4 | sesoomp [3.2 55 PHEVIEV 5 | 201e130 | 32 20 HEVIPHEV 6 | 2or4az40 [32 50 EV 7 | 42r4240 [32 | 100 EV oD BAK
Slide 20: Unit Shipments
Unit Shipments 208 2009 2010 amt ame ama 2014 2018 Scenario 2008 2009 2018 Optimise 5.103 wars_| 2.266.450 12% Fas 5.109 aon | 1228607 Conservative 5.103 7.550 520958, By 2020, EVs could account for approximately 7-12% of total car sales BAK
Slide 21: China E-Vehicle Market
China E-Vehicle Market = 169,000 =o = u = ° ee Nes MCE PHEW 2015 mers ince Matyi, Singapore Electric Vehicle Market: Market Breakdown By Region (APAC), 2015 cev City Electric Vehicle eREVIPHEV Extended Range / Plugin Hybrid Electric Vehicles B A K +20 Sowoe: Fos! & Silvan
Slide 22: China E-Bicycle Market
E~3 China E-Bicycle Market Tas + China is the world leader in Lithium batteries for Light Electric Vehicles + E-bikes have become the most popular personal transportation in towns + China can produce over 30 million E-bike a year
Slide 23: Visionary leader in China Li-ion battery industry
Visionary leader in China Li-ion battery industry Bachelor's in thermal energy and power engineering, Lanzhou Railway Institute; Ph.D. in quantitative economics, Jilin University 16+ years of financial management and capital- markets experience CFO at GCL Silicon, BU Global Svcs for Huawei and Erics
Slide 24: Revenue ($ Million)
Revenue ($ Million) 21% 19.0% 57.6 8 17.9% 18% 15% Q 12m 8 3 5 ms z 6% 3% 2009 3a09 4009 1010 2010 mmRevenue mm Gross Profit Gross Marain & BAK
Slide 25: Summary Income Statement
= 2 Summary Income Statement he Year ended Sept 30 ($ Million) 2007 2008 2009 Net revenues $145.9 $245.3, $244.4 Cost of revenues 120.3 214.4 184.4 Gross profit 25.6 30.9 26.8 Operating income 46 (0.5) (7A) Income (loss) before taxes 0.3 (9.0) (15.2) Net income (loss) 05 (7.9) (14.0) Comprehensive i
Slide 26: Summary Balance Sheet
Summary Balance Sheet March 34 September 30, 2009 Cash and cash equivalents $39.6 $30.7 Total current assets 231.1 220.0 Total assets 481.4 472A Total current liabilities 269.1 266.3, Total liabilities 309.1 315.5 Shareholders’ equity 172.0 156.6 BAK
Slide 27: Investment Summary
Investment Summary Leading lithium-ion battery manufacturer in China Technology leader with leading R&D team and strong product pipeline State-of-the-art manufacturing facility with focus on quality Cost reduction through automation, process optimization to low-cost, hit Mid-term growth from cylindr
Slide 28: Contact Information
Contact Information China BAK Battery, Inc. Investor Relations Firm: Me. John Hermon, CFA ‘Senior Account Man Phone: 1-846-899-3424 (New York) john harmon@ccair.com Mr. Jun Z Chief Financial Officer Phone: +86-755-8423-9821 Email: zoujun@bak.com.cn CCG Investor Relations inc. Counsel Piisbury Wintwo
Slide 29: Thank You
Thank You & BAK