Slide 1: December 2013 Business Update
2013 December Business Update The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. Copyright 2013 by Plug Power Inc.
Slide 2: Safe Harbor Statement
Plug Power Inc. Safe Harbor Statement This communication contains statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements contain projections of our futur
Slide 3: Progress Path to Success
Progress Path to Success Current negotiations to deploy GenDrive at multiple-site distribution centers will significantly impact fourth quarter bookings.
Slide 4: Structure of a Turn-key Multi-site Deal
Structure of a Turn-key Multi-site Deal •3-6 sites •750-1500 units •Deployed over 2 years •5 year extended service contract •Hydrogen infrastructure •Hydrogen fuel Appx. 50-60% of revenue Value per site: 8-12M USD
Slide 5: All Products are Commercially Available NOW!
All Products are Commercially Available NOW!
Slide 6: Typical Service Offering
Typical Service Offering •5 Year Contracts •Labor •Parts •Hydrogen Infrastructure •Represents 25% of total deal value •Included in Plug Power turn-key solution •Knowledge acquired by on-site support drives continual product improvement •Some customers today: •Sysco, Walmart, Kroger A Growing Segment
Slide 7: Typical Hydrogen Offering
Typical Hydrogen Offering •Hydrogen infrastructure •Today, portions deployed at Walmart Washington Court House •Compression system designed for deployments •Hydrogen re-sell •Bulk purchase of hydrogen •Daily, Plug Power customers purchase 2-3% of total available liquid H2 in the North America, today
Slide 8: Material Handling Focused Segments
Material Handling Focused Segments
Slide 9: Success in Manufacturing: Auto Makers
Success in Manufacturing: Auto Makers •BMW, Spartanburg, South Carolina: •205 GenDrive units in assembly hall •118 GenDrive units in logistics, body and paint shot •World’s largest users of fuel cells on a single site •Mercedes-Benz, Tuscaloosa, Alabama: •2012: 72 GenDrive units for vehicle assembly
Slide 10: Success in Manufacturing: Auto Makers
Success in Manufacturing: Auto Makers •Batteries are undependable – GenDrive provides predictability •Easy, fast operator refueling – minutes vs. hours •Lower operational costs through eliminating battery room and charging equipment •Reduction of greenhouse gas emissions by up to 80%
Slide 11: Success in Food: Kroger
Success in Food: Kroger •Compton, California •Over 160 units deployed for over a year •Stapleton, Colorado •New contract win for Plug Power •Will deploy over 200 GenDrive units in 2014 •Long term service contract in place at both facilities Improves Productivity
Slide 12: Success at Walmart
Success at Walmart •Deployments: Over 500 Units •Cornwall, Canada •Washington Courthouse, Ohio •Calgary, Canada •At Washington Courthouse facility - providing service and products •Continuing to purchase additional units at these sites •Another example of recurring revenue Targeting providing turnke
Slide 13: Customer Base Continues to Grow
Customer Base Continues to Grow Backlog product shipments: 2014 •Today: 28M USD •12/31: 43M USD Recurring Revenue •10M USD booked for 2014 and growing Wegmans Food Markets 70% of 2014 requirements of 60M USD
Slide 14: Annual Product Business Break Even
Annual Product Business Break Even Product Revenue $ 70,000,000 $ 58,600,000 $ 34,000,000 Material Cost $ 46,900,000 $ 39,262,000 $ 22,780,000 Production Labor Fully Burdened $ 4,850,000 $ 4,850,000 $ 4,850,000 All other Expenses $ 14,700,000 $ 14,472,000 $ 13,980,000 EBITDAS $ 3,550,000 $ 16,000 $
Slide 15: Service Cost: 75% Reduction in Breakdowns
Service Cost: 75% Reduction in Breakdowns Key Projects •Addressed systematic failures •Training – misdiagnostics •Billing out staff
Slide 16: Product Cost Reduction
Product Cost Reduction Key Projects •Design simplification •Scale •Alternative suppliers
Slide 17: Second Source Options
Second Source Options •Key component – stacks •Single sourced, today •Considering: •Alternative suppliers •Joint development with Air Liquide
Slide 18: Alternative Suppliers
Alternative Suppliers •Extensive review of potential substitutions •Ground Support Equipment deployment will use one of the potential alternatives •Looking to deploy GenDrive in 2014 with new supplier
Slide 19: Joint Development Opportunity
Joint Development Opportunity •Extensive survey of plate and membrane suppliers •Large volumes for industry •Great interest •Leverage Plug Power’s system and mechanical design capability and Air Liquide electro-chemist know-how •Opportunity to simplify our system, increase product life and reduce co
Slide 20: Market Expansion Opportunities
Market Expansion Opportunities
Slide 21: Market Expansion Through HyPulsion
Market Expansion Through HyPulsion •HyPulsion has completed one year of business and product development activities •Europe greater market opportunity than North America •7 collaboration projects in place: •Jungheinrich, Linde/Fenwhich, Still, Crown, NACCO, Toyota Material Handling Equipment •Starti
Slide 22: Market Expansion Opportunities: Adjacent Markets
Market Expansion Opportunities - 4 { Based on GenDrive Product Architecture: Adjacent Markets With q Same Dynamics as Materials Handling Transportation Refrigeration Units (TRU) Application: Air conditioning of product transport in refrigerated trailers Value: Offer a lower emission, lower noise, an
Slide 23: 2013 is Not Over.
2013 is Not Over. •17.8M USD orders to date this quarter, and building •Will close a multi-site turn-key deal in coming weeks •Expect 30-40M USD in bookings for the quarter •Will reach EBITDAS breakeven in 2014 THIS WILL BE A BLOWOUT QUARTER FOR ORDERS
Slide 24: E-mail questions
E-mail questions to: teal_vivacqua@plugpower.com