Nanoflex Power Corporation · OTC:OPVS
Nanoflex Power — Investor Presentation (August 2014)
31 slides from Nanoflex Power's investor presentation, August 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION August 2014 John D. Kuhns Dean L. Ledger Robert J. Fasnacht Executive Chairman Chief Executive Officer President & COO
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements This presentation and oral statements made in conjunction with it may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on
Slide 3: Our Company Snapshot
OUR COMPANY SNAPSHOT NanoFlex Power Corporation is a world leader in advanced thin- film solar cell technologies that are redefining the solar industry We develop, commercialize and license intellectual property (“IP”) involving advanced photovoltaic technologies (“PV”) We are entering the devel
Slide 4: Our Legacy of Success
OUR LEGACY OF SUCCESS Our Founders have established two successful companies in similar fields: InterDigital Inc. (Nasdaq: IDCC) Universal Display Corporation (Nasdaq: OLED) $1.5 billion market cap $1.5 billion market cap Created & controls substantial share of IP for mobile Created & controls sub
Slide 5: Our Founders: A Proven Track Record
OUR FOUNDERS: A PROVEN TRACK RECORD Sherwin Seligsohn Dean L. Ledger Former Chairman & CEO (retired) Chief Executive Officer Co-founded NanoFlex Power in 1994 Co-founded NanoFlex Power in 1994 Demonstrated the world’s first analog Former Director & EVP of Corporate mobile phone in 1972 Devel
Slide 6: Our Experienced Management Team
OUR EXPERIENCED MANAGEMENT TEAM Years with Name Position Related Experience NanoFlex 30+ years experience as investor & executive with John D. Kuhns Executive Chairman of the Board 13 power tech companies; founded 5 companies that completed IPOs 35 years experience financing & developing Dean L. Led
Slide 7: Our Business Model
OUR BUSINESS MODEL Develop advanced, disruptive thin film solar technologies Create IP portfolio to protect proprietary technologies We are here now: Funding & establishing our technology Partner with industry to develop and commercialize development center is a applications; apply for government-fu
Slide 8: Our Technology Advantages
OUR TECHNOLOGY ADVANTAGES Current Solar NanoFlex Technology Fixed Highly mobile Heavy Lightweight Rigid Flexible Fragile Durable/rugged High cost per watt Low cost per watt Our disruptive technologies will provide ubiquitous solar power at market-acceptable prices © 2014 NanoFlex
Slide 9: Platform #1: Inorganic Photovoltaics
PLATFORM #1: INORGANIC PHOTOVOLTAICS Gallium Arsenide is the highest efficiency solar technology available Highest power output per area & weight Widespread use in specialty markets (space, military) But GaAs cells are extremely expensive And inflexible; GaAs cells are typically on rigid o
Slide 10: Platform #1: Our Patented GaAs Wafer Reuse Cycle
PLATFORM #1: OUR PATENTED GAAS WAFER REUSE CYCLE GaAs Wafer Reuse = Low Cost, High Performance Solar © 2014 NanoFlex Power Corporation August 2014 10 CONFIDENTIAL
Slide 11: Redefining the GaAs Cost Structure
PLATFORM #1: REDEFINING THE GAAS COST STRUCTURE Projected cost reduction for 1 m2 GaAs PV cells at 25% efficiency GaAs wafer: $17,000/m2 Traditional GaAs with single wafer use: est. $85 per peak W (Wp) Nanoflex GaAs at 100 wafer uses: est. $1 per Wp** $1.00 1.0 $1.0/Wp Further cost reducti
Slide 12: Platform #1: Next Steps
PLATFORM #1: NEXT STEPS Transition to application development phase Establishing NanoFlex’s Technology Development Center Key development activities and milestones Demonstrate production-scale GaAs growth at low cost Scale up to modules on plastic/metal foils Validate cost models Engag
Slide 13: Platform #2: Organic Photovoltaics
PLATFORM #2: ORGANIC PHOTOVOLTAICS Solar Cell Electrical Energy Light Inorganic semiconductors – high energy processing Lots of SAND energy silicon Organic materials – LOW energy processing Spray paint, spin sublime dissolve coat, etc. © 2014 NanoFlex Power Corporation August 2014 13 CONFIDENTIA
Slide 14: Platform #2: Benefits of Organic Photovoltaics
PLATFORM #2: BENEFITS OF ORGANIC PHOTOVOLTAICS OPV is the transformative basket of technology for the solar industry (GaAs also) (GaAs also) (GaAs also) (GaAs also) OPV is the Future of Solar & NanoFlex is OPV’s Gatekeeper © 2014 NanoFlex Power Corporation August 2014 14 CONFIDENTIAL
Slide 15: Organic Photovoltaic – Inner Workings
PLATFORM #2: ORGANIC PHOTOVOLTAIC – INNER WORKINGS HEAT electrode Donor D electrode Acceptor A We optimize the ratio of electricity to heat loss to maximize power output August 2014 15
Slide 16: NanoFlex's OPV Intellectual Property
PLATFORM #2: NANOFLEX’S OPV INTELLECTUAL PROPERTY MATERIALS NanoFlex’s Foundational Technologies • Proprietary organic materials made from Multi-junction organic solar cell* common elements at very low costs Fullerene acceptors* Blocking layers* ARCHITECTURES New materials for visible & infr
Slide 17: OPV's Estimated Cost Structure
PLATFORM #2: OPV’S ESTIMATED COST STRUCTURE Item Cost / m2 Organic Materials $3.00 Substrate (metal foil) $1.00 ITO $0.50 Packaging $3.00 Capital Equipment $3.00 to $60.00 NanoFlex Labor & Overhead $6.00 to $10.00 achieved 12.6% in Total Cost / Wp (12.6% PCE) $0.28 to $0.81 Apr 2014 Total Cost / Wp
Slide 18: OPV Performance Achievements
PLATFORM #2: OPV PERFORMANCE ACHIEVEMENTS NanoFlex’s multijunction device has achieved the highest efficiency (12.6%) of an OPV cell (April 2014) © 2014 NanoFlex Power Corporation August 2014 18 CONFIDENTIAL
Slide 19: Platform #2: Next Steps
PLATFORM #2: NEXT STEPS Transition to NanoFlex’s Technology Development Center Key development activities & milestones Improve OPV performance – achieve 15% conversion efficiencies Prove long-term reliability of modules Validate cost models Demonstrate low cost manufacturing on flexible,
Slide 20: OPV—Enabling New Markets (High Profit Margin)
OPV—ENABLING NEW MARKETS (HIGH PROFIT MARGIN) Nanoflex can be integrated with current technologies Improves cost & performance of rooftop solar Our technology enables new applications & opens new high margin markets to solar power Flexible ultra-thin-films • Integration with glass or fabrics
Slide 21: Our Goals: Applied R&D
OUR GOALS: APPLIED R&D During 2015: Demonstrate 10x GaAs wafer re-use Increase OPV power conversion efficiency to 15% Win at least one research grant Sign at least one joint development agreement with licensing revenue potential © 2014 NanoFlex Power Corporation August 2014 21 CONFIDENTIAL
Slide 22: Our Path to Commercialization
OUR PATH TO COMMERCIALIZATION Invention: Development: Transfer: License: Production: Generate new Bring inventions to Commercialization Commercialize Manufacture directions and manufacturing via multiple successful commercial intellectual readiness independent technologies & sign products by propert
Slide 23: Our Development Timeline
OUR DEVELOPMENT TIMELINE Applied Research & Scale, Optimize & Basic Research Development Monetize 1994 - 2013 2014 + 2016 + Secured top Establish Technology researchers & Development Center programs Secure commercial Developed development partners foundational inorganic Monetize IP through & organic
Slide 24: Our Technology Development Plan
OUR TECHNOLOGY DEVELOPMENT PLAN 2014 2015 2016 2017 Build/qualify GaAs growth facility machine Sign facility agreement Hire core GaAs tech team Secure NFP site Demo 10x GaAs recycles Produce GaAs ELO mini-CPCs Characterize/qual GaAs cells Modulize GaAs cells Identify GaAs partners Set up organic mat
Slide 25: Existing and New Solar Markets
EXISTING AND NEW SOLAR MARKETS $100 billion solar market. 2013 2018 Shipments projected 35 GW 12% CAGR 61.7 GW to increase 12% $100 billion $155 billion annually. Source: Lux Research. GaAs represents <1% of the NanoFlex’s OPV technology can solar market. NanoFlex’s low- expand the size of the overa
Slide 26: The Current U.S. Solar Landscape
THE CURRENT U.S. SOLAR LANDSCAPE More capacity added in the last 2 years than the total over the previous 30 years! U.S. PV installations in 2013 were up 41% over 2012 PV = 29% of ALL new U.S. electricity generation capacity in 2013 6.6 GW projected PV installations in 2014 (+39% vs. 2013, dou
Slide 27: Our Global Patent Portfolio
OUR GLOBAL PATENT PORTFOLIO Country Issued Pending Total Cumulative Capacity Australia 24 31 55 Canada 2 45 47 2011: 3 GW 2020: 80 GW China 39 30 69 2030: 138 GW European Patent Commission 17 59 76 Germany 17 0 17 Great Britain 15 0 15 Hong Kong 24 28 52 India 6 54 60 2011: 5 GW 2020: 39 GW Japan 16
Slide 28: Precedent IP Transactions & Valuation
PRECEDENT IP TRANSACTIONS & VALUATION Total U.S. Purchase Price per U.S. Date Seller Buyer Patents Patents* Price Patent Jun 2012 InterDigital Intel 1,700 160 $375 million $2.3 million 4 patent Jul 2012 InterDigital Nufront Mobile 5 $9 million $1.8 million families May 2012 Motorola Mobility Google
Slide 29: 18-Month Budget
18-MONTH BUDGET Uses $'s millions % Comments Research and Development: R&D Sponsored Research $3.6 20% Continued/expanded research at UM and USC R&D Operating Expenses $1.3 7% Facility personnel, facility lease, supplies, etc. R&D Equipment Purchases $2.4 13% Capital equipment purchases and fees; fa
Slide 30: Summary
SUMMARY Disruptive, game-changing technology platforms Extensive foundational intellectual property portfolio Embarking on commercialization phase of the IP model Founders’ proven track record & legacy of success Seasoned management team Largest addressable markets in commerce Compelling valuation o
Slide 31: Investor Relations Contact
OTCQB: OPVS INVESTOR RELATIONS CONTACT: JOEY STONE (225) 400-9720 John D. Kuhns JSTONE@N DeanANOL.FLedger LEXPOWER.COM Robert J. Fasnacht Executive Chairman Chief Executive Officer President & COO 31