Slide 1: Plug Power Investor Presentation
Plug Power Investor Presentation June 2013 The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. Copyright 2013 by Plug Power Inc. 11
Slide 2: Forward-looking statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders and shipments for 2011. These statements are based on current expectations that are subje
Slide 3: We Are Plug Power
We Are Plug Power Leader in development and production of clean, commercial energy solutions for the material handling industry • Headquarters in Latham, New York with over 140 employees • Founded in June 1997 • World class manufacturing facility in NY • 152 issued patents • Over 4,000 units in the
Slide 4: Transforming Plug Power Into a Sustainable Business
Transforming Plug Power Into a Sustainable Business Executing our business plan Enhancing key and expanding Developing customer into adjacent technology relationships markets 2008 2013 Product 1 beta fuel cell Portfolio of 3 product families Blanket focus across multiple Large distribution and Custo
Slide 5: Plug Power: Poised for Profitability
Plug Power: Poised for Profitability Today’s focus: material handling market • Endorsed via an investment by Air Liquide, a leading industrial gas firm • Significant and new customers are buying • Quality problems behind us • EBITDA profitability within reach • Success in materials transport is gene
Slide 6: Plug Power's Focus: Material Handling Industry
Plug Power’s Focus: Material Handling Industry GenDrive Products Operational Benefits, Large Market Opportunity and Path to Profitability Increased Productivity Class 1 Suite Sit-down Lift Trucks Lower Operational Costs Additional Commercial Space Zero Emissions Class 2 Suite Large Market Opportunit
Slide 7: Lowering the Cost of Hydrogen Infrastructure
Lowering the Cost of Hydrogen Infrastructure … Large On-site On-site Small Retail Liquid Storage Generation Solutions … is crucial to expand the Material Handling Market 7
Slide 8: Expanding the Opportunity in the $20B Material Handling Industry
Expanding the Opportunity in the $20B Material Handling Industry North American shipments have been isolated to 40% of the total fork truck population Segment Experience Hydrogen Solutions Market Size Market Size QTY* USD** North 6 Years • Delivery with on-site liquefied storage America Large (1 Yea
Slide 9: Customer Base Continues to Grow
Customer Base Continues to Grow • 44 total site deployments with 24 different customers • 29 brownfield sites • 15 greenfield sites • More than 4,000 units shipped • ~8,000 fills per day by customer • More than 4,600 kg of H2 dispensed per day 9
Slide 10: GenDrive Value Proposition
GenDrive Value Proposition Key benefits of GenDrive implementation • Increased productivity up to 15% • Greenfield IRR Payback < 1 year and ~$3 million in savings • Reduced carbon footprint up to 80% Fuel Cell Labor Savings Compared to Lead-Acid Batteries $12 Cumulative Savings $10 $8 $6 $4 $2 $0 1
Slide 11: Customer Success in Food
Customer Success in Food • Second largest food retailer in North America • First deployment in Compton, CA • 174 GenDrive units • Kroger operates ~30 large distribution centers nationwide • Distribution center conditions include freezer environments reaching -25 degrees F • New sites being considere
Slide 12: Customer Success in Manufacturing
Customer Success in Manufacturing • Largest consumer product company in the world • Deployed in California, Louisiana, Pennsylvania and North Carolina • 342 GenDrive units, total • P&G operates 34 plants in the US and close to 100 plants world-wide • Modified standard products for P&G fleet strength
Slide 13: Customer Success in Retail
Customer Success in Retail • Largest retailer and employer in the world • Deployed in Ohio, Alberta and Ontario • 509 GenDrive units, total • Walmart operates 100+ distribution centers with close to 20,000 forklift trucks and approximately 15,000 units in stores in North America • Plug Power designe
Slide 14: HyPulsion JV is Bearing Fruit
HyPulsion JV is Bearing Fruit • HyPulsion, Joint Venture between Plug Power and Air Liquide, has completed one year of business and product development activities • Foundation is laid – will ship product in 2013 • Market opportunity greater than North America • 9 CE certified products with multiple
Slide 15: Plug Power Operations
Plug Power Operations 500+ years combined experience in fuel cell system product development, manufacturing, and service Engineering • Comprehensive knowledge at both the fuel cell stack and system level • Flexible and responsive to meet specific customer needs • Structured problem solving process f
Slide 16: Plug Financials
Plug Financials 2013 2012 Product and Service Business Product and Service Revenue $ 35,300 $ 24,676 Cost of Product and Service Revenue $ 36,700 $ 37,657 Gross margin percentage -4% -53% EBITDAS $ (14,000) $ (30,293) 16 Note: * Figures in USD millions
Slide 17: 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 18: Product and Service Cost Roadmap
Product and Service Cost Roadmap Product Weighted Average Cost: HP and LP Products • We continue delivering cost reductions $35,000 $30,000 • Costs are falling in line $ / Unit $25,000 $20,000 • Averaging ~10% year over year $15,000 reductions ($ / unit) from 2010 - 14 $10,000 • Higher volumes, sour
Slide 19: Future Market Expansion
Future Market Expansion • Targeting adjacent markets that have the same dynamics as materials handling • Ground Support Equipment – 60,000 units deployed Charlatte BTT • Big Rig Transportation Refrigeration Units – 290,000 units deployed • Range extenders for heavy-duty electric vehicles • President
Slide 20: Summary
Summary • Plug Power is the premier system integrator for PEM fuel cells • Materials handling first mover advantage – 90% market share; HyPulsion JV gives us same advantage in Europe • Air Liquide now a key strategic investor and joined board of directors • Compelling customer experience with Fortun
Slide 21: mt.) /T ete
mt.) /T ete Spee ey pour Wer 968 Albany Shaker Road Latham, New York 12110 518.782.7700 www.plugpower.com