Flux Power Holdings, Inc. · NASDAQ:FLUX
Flux Power — Investor Presentation (August 2020)
25 slides from Flux Power's investor presentation, August 2020
Slide 1: Disrupting a Multi-Billion $ Material Handling Sector
“Disrupting a Multi-Billion $ Material Handling Sector” 8/3/2020 1
Slide 2: Safe Harbor Language
Safe Harbor Language Forward Looking Statements: This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to the Company’s future results of operations and financial position, planned produc
Slide 3: Who is Flux Power?
Who is Flux Power? • Designer, developer, manufacturer, and seller of lithium-ion battery packs that replace inefficient and environmentally undesirable lead-acid packs in industrial equipment • Unique modular design and proprietary software lends itself to tremendous flexibility. Flux Power LiFT Pa
Slide 4: Flux Power in the Current Environment
Flux Power in the Current Environment Enabling the paradigm shift to an electrified world for material handling • Decade of experience in design and packaging lithium-ion battery packs for motive applications • Products available for Class 1, 2, and 3 forklifts, airport ground support equipment (GSE
Slide 5: A Foundation Built for Fortune 500 Electrification
A Foundation Built for Fortune 500 Electrification Full Suite of Energy Storage Products 8/3/2020 5
Slide 6: Competing Power Sources for Equipment
Competing Power Sources for Equipment • Lithium-ion • High volume, multi-shift applications • Five competitors of comparable revenue • Only one has UL Listings and one other has private label with OEM • Flux Power was the first mover in the motive lift space and has over 7,000 packs in the field • L
Slide 7: Large Addressable Market
Large Addressable Market Forklift Type Class Description • The Industrial Truck Association (ITA) estimates Class 1 Sit-on / Counterbalance that ~260,000 lift trucks were sold in North America in 2018 Class 2 Narrow Aisle Sector Electric Trucks focus • $2.5B addressable annual market for electric Cl
Slide 8: Customers Want Lower Cost and Higher Performance
Customers Want Lower Cost and Higher Performance Attribute Lead Acid Flux Power Lithium-Ion Performance Batteries “LiFT Packs” Power & runtime Run longer shifts, maintain Performance Limitations power Energy Efficiency Safety Lifespan * Shorter cycle life 5 – 10 year warranties Total Cost of Ownersh
Slide 9: 5-Year Cost Savings: Lithium-ion vs Lead Acid
5-Year Cost Savings: Lithium-ion vs Lead Acid Battery Costs Lead-Acid M-Series Net Price per Battery Expected lifetime (years) $ 4,000 6 $ 12,000 10 Savings “End Rider Fleet” (10 units): Batteries per unit 2 1 Total batteries in 5 years Number of Trucks in fleet 1.7 10 0.5 10 • Battery savings $6,66
Slide 10: Fortune 100 Manufacturing Company ROI
Fortune 100 Manufacturing Company ROI Battery Costs Lead-Acid L/X-Series Net Price per Battery $ 6,500 $ 22,000 Savings Class I Forklifts (80 units) Expected lifetime (years) 5 7 Batteries per unit Total batteries in 5 years 3 3.0 1 0.7 • Battery savings $0.3M Number of Trucks in fleet 80 80 Total 5
Slide 11: Full Product Line for Large Fleets
Full Product Line for Large Fleets Equipment Flux Power Product Description S8 & S24 Class 3 Walkie High volume workhorse LiFT Pack Market volume similar to Walkies Class 3 End / Center Rider M24 LiFT Pack 4X energy of Walkie Narrow Aisle, High Growth Class 2 Narrow Aisle M36 LiFT Pack 10X energy of
Slide 12: Modular Designs Enable Nimble Product Development
Modular Designs Enable Nimble Product Development 1-Tier Launched Pack 2014 2-Tier Blade Launched 3-Tier 2018-19 and Fits Most Packd fits Models (Class 3) (GSE/Class1) (Class 2/Class 3) Lithium Iron Phosphate cells (no Cobalt) Battery “Tier” Ground Support Class 1 Ride-On Class 2 Narrow Aisle Class
Slide 13: SkyBMS Telematics: Transforming Warehouse Management
SkyBMS Telematics: Transforming Warehouse Management Access to Fleet Management and Diagnostics Anywhere Data is Data is Data is sent to transmitted via stored in a telematic units cellular / Wi-Fi cloud base connection Alerts via text / email lets users know when a charge is needed Data is translat
Slide 14: Airport Ground Support Equipment (GSE)
Airport Ground Support Equipment (GSE) • GSE battery packs utilize the same modular design as our large products and represents a natural product extension to forklift applications • Recent industry trends: • Recent increase of “Green Initiatives” at airports favors a lithium solution • Delta Airlin
Slide 15: Emerging New Products
Emerging New Products • Solar Energy Storage • Initial sales, partnering with OEM “Envision Solar International” (Symbol: EVSI), to supply our lithium-ion packs for their solar EV charging stations • Our solar energy storage product is a natural product extension • Utilizes our modular design adapte
Slide 16: R&D and Manufacturing
R&D and Manufacturing • Proprietary designs including battery management system and telemetry • Advanced features and capabilities have evolved from 6 years of material handling customer experience • Five innovative features of our next generation BMS currently in patent process • State of the art d
Slide 17: Broad Sectors and Customers Being Served
Broad Sectors and Customers Being Served Beverage Food Distribution Manufacturing Retail/Grocery Airport GSE 8/3/2020 17
Slide 18: Multiple Sales Channels
Multiple Sales Channels OEMs • Have sold to a majority of the top 10 forklift OEMs • Private label with a top five global OEM • Formal Supply Agreements with three Fortune 500 OEMs Equipment Dealers • Nationwide relationships with both OEM-affiliated & independent equipment dealers Battery Distribut
Slide 19: Private Label Program with Large OEM
Private Label Program with Large OEM • OEM has given validation and support of Flux Power products and service • Flux Power Walkie Pack is provided as a “private label” under OEM brand; launched April 2019 • Currently near completion developing a follow-on proprietary model for OEM new Class 3 forkl
Slide 20: Strong Revenue Growth
Strong Revenue Growth Fiscal Year Revenue & GM Income Statement For the Fiscal Period Ending FQ4/CQ2 FQ1/CQ3 FQ2/CQ4 FQ3/CQ1 (June 30) ($ Millions) Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Revenue Gross Margin GM Total Revenue 3.0 1.9 3.6 5.1 18 16.5 20% 16 Cost Of Goods Sold 2.8 1.8 3.3
Slide 21: Gross Margin Expansion in Progress
Gross Margin Expansion in Progress Initiatives for gross margin improvement Explanation Next-Gen Battery Management System (BMS) Consolidates PCBs; modular design to accommodate large packs Cell sourcing & purchasing improvements New cell supplier has automated factory for better quality & cost Volu
Slide 22: Strengthened Capital Structure
Strengthened Capital Structure Impact of Recent PIPE and Debt Conversion FY 2020 Qtr 3 Change Comment ($000) ($000) Assets Cash 106 4,300 PIPE raise closed July 24, 2020 Accts Rec 2,710 Inventory 5,139 Other Current 916 Other LT 2,894 Total Assets 11,765 Liabilities Accts Payable 4,141 Other current
Slide 23: Leadership Team
Leadership Team Ron Dutt: CEO, Director Chuck Scheiwe: CFO Leadership at DHL, Ford Motor Company, Visa, Directed Led accounting and financial planning operations of diverse Electronics and SOLA Int’l. Led companies from early stage companies, Senstay Reptron & Teletrac and GreatCall, from to >$1B re
Slide 24: Summary
Summary Lithium technology enables transformational industrial change • Cleaner than traditional technologies and enables fleet electrification • Coupled with on-board processors enables intelligent fleet control (telemetry) • Lithium cells are technically accepted, and widely produced to exceptiona
Slide 25: Thank you!
Thank you! 64,000 sq. ft. facility in Vista, CA 8/3/2020 25
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