Ocean Power Technologies, Inc. · AMEX:OPTT
Ocean Power Technologies — Investor Presentation (January 2019)
40 slides from Ocean Power Technologies's investor presentation, Jan 23, 2019
Slide 1: Ocean Power Technologies, Inc. Investor Presentation
Ocean Power Technologies, Inc. Investor Presentation “ent January 2019 OPT OCEAN POWER TECHNOLOGIES:
Slide 2: Forward Looking Statements
INVESTOR PRESENTATION JANUARY | 2019 Forward Looking Statements In addition to historical information, this presentation contains forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified b
Slide 3: About Ocean Power Technologies
About Ocean Power Technologies
Slide 4: Ocean Power Technologies... Who We Are
INVESTOR PRESENTATION JANUARY | 2019 Ocean Power Technologies... Who We Are ““OPT is a manufacturer of distributed offshore power equipment which provides persistent, reliable and economical power and communications for remote offshore topside and subsea applications.” OPT Target Markets Offshore Oi
Slide 5: Quick Facts
INVESTOR PRESENTATION JANUARY | 2019 Ocean Power Technologies... Quick Facts ° NASDAQ: OPTT * Market Cap: approx. $10M * TTM Revenue: approx. $400K* * Cash & Equivalents: $4.6M* * Organization: Over 40 employees including deep engineering capabilities Intellectual Property: Proprietary technology wi
Slide 6: OPT Timeline Distributed Power
OPT Timeline Distributed Power ESTOR PRESENTATION JANUARY | 2019 \ Grid Connected Wave Power | i * New Production Facility ¢ Leadership Additions New customers New orders Brand recognition . . = sOPT SRN OUCETESHNOLOUIES "1094 2014 »=—-2015 2017
Slide 7: Recent Highlights
INVESTOR PRESENTATION alae Recent Highlights yv New product developments and new technology patent awards and filings v * Robust opportunity pipeline — $ millions proposals issued v * Oil & gas customer PowerBuoy® delivery v * Multiple PowerBuoy® builds to address demand cA Added key senior leadersh
Slide 8: Customer Projects
Customer Projects 1% year lease 1% year extend option EniS.p.A. * Purchase option ® Deployed in Adriatic Sea 9-month lease w/ext. option Premier = Purchase option Oil = Summer ‘19* ship Deploy in Central North Sea Chile feasibility study Nov.-Dec. ’18 evaluation Potential deployment in Chilean water
Slide 9: Our Technology
Our Technology ee
Slide 10: Persistent Power and Communications
OPT OCEAN POWER TECHNOLOGIES 10Ft, above waterline Temporary 30Ft. 3 Hues below Power waterline E Heave Plate Persistent Power and Communications ¢ Floating system... standard anchorage down to 3,000 meters * Submerged heave plate & spar... remain motionless in ocean waves ° Float rides ocean waves.
Slide 11: PowerBuoy Market Value Proposition
i ~ PowerBuoy® Market Value Proposition Cost Savings and Operational Flexibility O) Savings by eliminating vessels... “unmanned station” provides persistent power and communications QO) Increased safety... by allowing remote operations from shore Faster operational decision-making... from real-time
Slide 12: Strategic Position
Strategic Position ee
Slide 13: The Blue Economy — Our Total Addressable Market
The Blue Economy — Our Total Addressable Market Communications Wi-Fi and cellular Long-Term TAM > $1.0B
Slide 14: Offshore Oil & Gas
Offshore Oil & Gas Applications Key drivers Improved site safety = and security Equipment = < monitoring and control Moving toward electrification and digitization >10,000 sites Communications require power * Subsea battery charging Deep/ultra-deep waters means farther offshore Subsea robots and dro
Slide 15: Defense & Security
Defense & Security Applications a Key drivers : pices SLE: * Surface threat detection ill * Renewable Power survenence , + High Bandwidth Comms ° Subsea / submarine / } + 20 Kw-Hr Power Stora . + Remote networks and 4 nisin Detection) Nee AUV threat detection communications MetOcean Sensing * Subsea
Slide 16: Science & Research
Applications * Climate change * Weather forecasting * Ocean currents, waves, chemistry, and seismometry ° Fish and mammal migration * Environmental and biological monitoring OPT OCEAN POWER TECHNOLOGIES: Science & Research soure an EPEe , IHO-IOC GEBCO, NGS | Esn, GEBCO, D. Source: National Data Buo
Slide 17: Communications
Communications Applications Key drivers * Military/civilian remote Wi-Fi and cellular comms * Disaster recovery Increasing big-data * Range extension and i requirements data relay stations + 4G offshore base * Deep water stations : operations * Quick-deploy search and rescue ° Bandwidth * Migrant of
Slide 18: Our Strategy
Our Strategy FF Se!
Slide 19: Offshore Oil & Gas - Example: Decommissioning Market Segment
| _ Offshore Oil & Gas - Example Oil Field Decommissioning Market Segment estimated OPT OCEAN POWER TECHNOLOGIES Offshore oil & gas production facilities to be decommissioned between 2018 to 2025* as
Slide 20: Transaction Economics
Transaction Economics Base PowerBuoy® + Value-Added Engineering + Support Services * Sale or Lease + Packaged Options * Marine Services OPT * Customization * Remote Monitoring OCEAN POWER TECHNOLOGIES + Integration Services + Extended Service Agreements
Slide 21: Products and Services — Fully Commercial Today
Products and Services — Fully Commercial Today PB3 PowerBuoy® + Long Deployments Customization * Persistence Packaged Options Permanency Engineering/Design * Low Maintenance Innovation/Testing Renewable Marine Services Support Services
Slide 22: Hybrid, Subsea Battery and Anchorless PowerBuoy
= sOPT sian Foren BEeLNOLOCI SS hybrid PowerBuoy® Shorter Deployments High Energy Storage Low Maintenance Modular / Scalable Subsea Battery Solutions * Shorter Deployments * Low Maintenance * Complements PowerBuoy® Anchorless PowerBuoy® Advanced Design Self Propelled Quick Deploy Defense Focus UMBIL
Slide 23: Target Market Buying Process
_ OPT OCEAN POWER TECHNOLOGIES ——_ Target Market Buying Process Revenue - Stream New/repeat customers, multiple PowerBuoy’ purchases revenue backlog generation Launch Customers Initial demonstration projects, rental/service revenues, “try before you buy” Proposals Budgetary estimates, technical prop
Slide 24: Our Management
Our Management
Slide 25: Management Team — Experienced and Disciplined
INVESTOR PRESENTATION JANUARY | 2019 Management Team — Experienced and Disciplined Executive Title Selected Experience & George H. Kirby Chief Executive Officer accom J SAIC ? amsc tycoa Catalent. Matthew T. Shafer Chief Financial Officer hence WwW VALEANT a Matthew J. May VP. of Global Business Dev
Slide 26: Financial Profile
INVESTOR PRESENTATION JANUARY | 2019 Financial Profile Selected cial Information (in 000s) Balance Sheet (unaudited) 10/31/18 Total shares outstanding \») 18,992,086 Cash, equivalents, restricted cash $4,556 % owned by directors & officers '7) >1.7% Total current assets $5,863 Warrants outstanding 3
Slide 27: Investment Thesis
INVESTOR PRESENTATION bast | 2019 Investment Thesis ¢ Fully commercial and growing ¢ Innovative products and services * Strong intellectual property portfolio ¢ Large and diverse addressable markets: » Offshore Oil & Gas » Defense & Security » Science & Research » Telecommunications ¢ Burgeoning dem
Slide 28: Contacts
Contacts Matthew Shafer Porter, LeVay & Rose Chief Financial Officer & Treasurer Michael Porter, President mshafer@oceanpowertech.com ocean@plrinvest.com (609) 730-0400 ext. 224 (212) 564-4700 OCEAN
Slide 29: PowerBuoy: Tapping into the Power of the Ocean
= POWERBUOY™ TAPPING INTO THE POWER OF THE OCEAN < www.oceanpowertechnologies.com
Slide 30: Appendix: New Products
Appendix: New Products
Slide 31: Hybrid PowerBuoy
JANUARY | 2019 Hybrid PowerBuoy® * Over 1,000 kW (1+ MegaWatt) energy capability * Compact, lightweight, and easy to deploy ¢ “Hot-swap” instead of refueling at sea * Scalable for higher-powered applications * Quick/easy shipment to remote locations Applications: ¢ Subsea battery recharging * Short-
Slide 32: Subsea Battery Solutions
JANUARY | 2019 Subsea Battery Solutions High performance/cost efficient power * Quick and easy to deploy and retrieve * Insensitive to severe weather conditions ¢ Modular components - wide range of capabilities * Proven and robust technology components
Slide 33: Anchorless PowerBuoy
OPT OCEAN POWER TECHNOLOGIES Anchorless PowerBuoy. ¢ Self-propelled — no anchor needed! ¢ Self contained — no external moving parts § * Remotely operated smart device * Quick deploy and simple retrieve ¢ Liquid-fueled back-up ¢ Leverages OPT ocean-proven designs & capabilities
Slide 34: Sub Surface Buoy
~ SUB SURFACE BUOY BRIDLE, we ‘BRIDLE BRIDLE. UMBILICAL SUB <uerAce 16) ao 4 ANCHOR SYSTEM: SUB SURFACE BUOY | Seas SYSTEM it ANCHOR sysTEM 1,000 - 3,000 METRES
Slide 35: Commercialization Strategy
“Skate to where the puck’s going to be, not where it’s been.” — Wayne Gretzky OPT OCEAN POWER TECHNOLOGIES: Commercialization Strategy = First Mover = Subsea Power = Strong Value = Surveillance & Monitoring = Building Demand = Offshore Connectivity “Targeted Focused Markets Applications For Scaling:
Slide 36: Defense & Security - Strategy
Defense & Security - Strategy : aN ~ Defense Contractors Defense Strategy OPT’s PB3 PowerBuoy® (Fully Commercial) OPT's Anchorless PowerBuoy® (Under Development) Leverage Rapid Existing DOD s OApT Contracts Organizations OPT OCEAN POWER TECHNOLOGIES
Slide 37: Project Economics
JANUARY | 2019 Project Economics PowerBuoy® RENTAL and Services Example sequential payment milestones (% contract revenues recognized) and timing 3 to 18 months Cumulative % Revenues Recognized PowerBuoy® SALE and Services Typical preferred sequential payment milestones (% contract revenues recogniz
Slide 38: Sources and References
Sources and References
Slide 39: Market Supporting Information and Sources
JANUARY | 2019 Market Supporting Information and Sources Total Addressable Market The National Oceanographic and Atmospheric Administration (“NOAA”) 2016 Ocean Enterprise Report Oil & Gas Source: U.S. Bureau of Safety and Environmental Enforcement Greater than 10,000 sites are currently in operation
Slide 40: Decommissioning Sources
- Decommissioning Sources Footnote: ‘Decommissioning Opportunities in Brazil's Oil and Gas Horizon (www export.gov/article?id=Decommissioning-Opport. ee ‘Decommissioning has potential to be Australia's next oil and gas boom hittps://www2.deloitte.com/au/en/pages/media- OPT OCEAN POWER TECHNOLOGIES:
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