Slide 1: Management Presentation
Management Presentation June, 2011 The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means ~ electronic, mechanical, photocopying, recording or otherwise
Slide 2: Plug Power Inc. Safe Harbor Statement
Plug Power Inc. Safe Harbor Statement 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
Slide 3: Executive Summary
Executive Summary Plug Power is the marketshare leader in alternative energy solutions for the Material Handling market • Focus on high volume, multi-shift manufacturing and distribution facilities • $19.9B global market • 150 issued patents, 21 pending First mover advantage - 85% market share for f
Slide 4: Executive Summary
Executive Summary Revenue guidance growth of 80-100% for both 2011 and 2012 • 2010 revenue of $19.5M versus $12.3M in 2009 • Product/Service revenue more then tripled • Record Q1, 2011 - 534 orders vs. 543 orders in all of 2010 • 650 shipped in 2010 vs. 271 in 2009 • Driving toward 30+ gross margins
Slide 5: Plug Power Currently Focused on Material Handling in North America
Plug Power Currently Focused on Material Handling in North America GenDrive® Products Operational Benefits, Large Market Opportunity and Path to Profitability Increased Productivity Class 1 Sit-down Lift Trucks Lower Operational Costs Additional Commercial Space Zero Emissions Class 2 Large Market O
Slide 6: GenDrive Value Proposition
GenDrive® Value Proposition Key Benefits of GenDrive® Systems Implementation Increased Productivity Reduced Operational Expenses Increased Commercial Efficiency Environmental Benefits Enable forklifts to operate at Economic lifetime up to 1.5x - 2.0x consistent full speed and power at all longer tha
Slide 7: Global TAM for Class 1-5 Fuel Cell Powered Forklift Trucks
Global TAM for Class 1 – 5 Fuel Cell Powered Forklift Trucks Global TAM for Class 1 - 5 Fuel Cell Powered Market Opportunity Forklift Trucks Hydrogen a proven and sustainable alternative energy source for motive power • Compelling energy source for the future $19.9Bn* • Strong government and interna
Slide 8: Characteristics of Initial Targeted Customers
Characteristics of Initial Targeted Customers Criteria Desired Rationale Class 1, 2, 3 forklifts in Food, Consumer/Retail, Industries served distribution centers and Manufacturing & Distribution facilities Efficient utilization of Fleet number 50+ trucks hydrogen infrastructure Maximize productivity
Slide 9: Sales Strategy
Sales Strategy 2011 • Focus on the North American market - Direct sales to targeted large accounts - Leverage OEM dealer network for other accounts - Raymond - Distribution agreement - Crown, NAACO, Toyota - joint sales 2012 • International Expansion - Product portfolio available - Leverage relation
Slide 10: Customer logos
Cate & SYSCO Co. CONSOLIDATED Wegmans - Walmart>\: x) CE EEE WHOLE FOODS, Nestle Nestle ma H Gcs & plug power
Slide 11: What Our Customers Say
What Our Customers Say “Sysco is committed to energy and operational “Hydrogen fuel cells not efficiency, and consistently strives to find a greener only provide greater way of doing business. We are proud to introduce productivity and lower our first installation without battery infrastructure for
Slide 12: Customer Success
Customer Success • 3 sites on 100% hydrogen by end of Q3 2011 - Houston, Front Royal and Philadelphia • Commitment for 3 additional sites - Boston, Long Island and San Antonio • No battery infrastructure • Multi-distribution center commitment • Investigating opportunities for using fuel cells with r
Slide 13: Customer Success
Customer Success • New 450,000 sq. ft. facility in Canada with over 60 forklift trucks exclusively powered by Plug Power • Eliminated need to change out lead acid batteries • Expected GHG reduction up to 72%, compared to batteries charged from the grid • Negotiating future deals in North America • O
Slide 14: Customer Success
Customer Success • Site Success - Greer, South Carolina: 86 units - Mix of Class-1, -2 and -3 - First BMW plant to use fuel cell-powered forklift trucks • New facility built without battery infrastructure • Entire fleet deployed with GenDrive ® fuel cell power units • Affirming global commitment to
Slide 15: Customer Success
Customer Success • Site Success - Charlotte, NC: 40 units - San Leandro, CA: 37 units • Reiterates commercial readiness of Plug Power solution for increasing productivity and reducing carbon footprint • Provided Class 1 sit down counterbalance GenDrive ® • Operates 100+ DCs with 2000+ forklift truck
Slide 16: Customer Success
Customer Success • Site Success - Sarasota, FL: 65 units • Existing facility converted to hydrogen fueling • Old battery storage facility now used to store more product • Conversion expected to reduce carbon emission by ~132 metric tons annually • Entire fleet deployed with GenDrive ® fuel cell powe
Slide 17: Hydrogen Infrastructure Partners and Strategy
Hydrogen Infrastructure Partners and Strategy Partners Strategy Established relationships with key industrial gas suppliers Hydrogen supplied on-site at customer locations Cooperation with suppliers to approach new and existing customers Cost and availability of hydrogen critical to fuel cell deploy
Slide 18: Commercial Progress: Hydrogen Refueling and GenDrive
Commercial Progress: Hydrogen Refueling and GenDrive To Date: ■ > 1200 GenDrive products deployed ■ > 2.5 Million commercial operating hrs accumulated ■ 6000-10,000 refuelings each week ■ More than 95% of NA refuelings are being done with Plug Power products By end of 2011 (projected): ■ ~3000 GenDr
Slide 19: Shipments, revenue, gross margin and EBITDA outlook
Shipments (units) 3,400 — 4,400 Revenue ($ mil) Ln vn Gross Margin on = = a. — Product Sales Negative single digits™}) ~ ie ae (%) EBITDAS (§ mil) ($39.1M) ee ae breakeven eer Operating Cash $40.8M used mid teens — Pc EtotTs : low 20’s use
Slide 20: Gross Margin Improvement Projections
Gross Margin Improvement Projections 2011-12 Cost Reduction Initiatives: •Reduction in Freight Costs (ongoing), reductions in Scrap and Rework (ongoing) •Class 2 - 18” architecture standardized across all Class 2’s, more OH to be absorbed by higher volume (ongoing) •Air-cooled Class 3 implemented, •
Slide 21: Competitive positioning
Competitive positioning Direct Competitors vs. PLUG PLUG OOJA NUVERA Price 1.0X 1.5X 1.3‐1.4X MKT Share 85% 9% 6% Platform Hydro FC/Lithium Methanol FC/Lead Acid Hydro FC/Lead Acid H2O Capture YES N/A NO Operates in All Temps YES NO NO Hi ‐ Med Lift Capacity YES NO Limited Facility Space Savings YES
Slide 22: Experienced Team
Experienced Team Andy Marsh, President & CEO • Joined Plug Power in April 2008 • Co-founder and CEO of Valere Power (sold to Eltek ASA in 2007) • 18 years with Lucent Bell Laboratories in sales and technical management positions • BSEET from Temple, MSEE from Duke and a MBA from SMU Gerry Anderson,
Slide 23: 2013 and Beyond
2013 and Beyond Continue annual growth in shipments and revenue of 25%+ Reach revenues of $100M+ Achieve gross margins in excess of 30% Expand the material handling market outside North America as well as increased penetration at existing customers Enjoy profitable and growing repeat business throug
Slide 24: Conclusion
Conclusion First mover advantage - 85% marketshare Global market of $19.9B Revenue growth guidance 80-100% in 2011 and 2012 Tripled Product/Service revenue year over year Record 2010 and Q1 2011 orders Expected profitability in 2012 30%+ gross margin potential Significant decrease in operating expen
Slide 25: Headquarters
HEADQUARTERS 968 Albany Shaker Road Latham, New York 12110 Phone: (518) 782-7700 Fax: (518) 782-9060 www.plugpower.com