Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (December 2018)
26 slides from Cleanspark's investor presentation, Dec 10, 2018
Slide 1: Investor Presentation
O TC : C L S K C O N F ID E N T I A L INVESTOR PRESENTATION TICKER: CLSK December 2018
Slide 2: Safe Harbor Statement
SAFE HARBOR S T A T EME N T Statements in this presentation relating to plans, strategies, testing and operational performance, OTC:CLSK CONFIDENTIAL projections of results of specific activities and other statements that are not descriptions of historical facts may be forward - looking statements w
Slide 3: Investor Highlights
INVESTOR HIGHLIGHTS RAPIDLY EXPANDING MARKET The electric grid is getting more distributed, with the distributed energy resource (DER) market expected to grow at a compound rate of 21% (Source: Transparency Market Research; July 2016 ) Distributed energy resources (DER) pose the biggest disruption t
Slide 4: Our Business Segments
1 2 3 Software and Controls Project Development and Engineering Services Hardware Sales OUR BUSINESS SEGMENTS Avg. Margin: 80 - 95% Avg. Margin: 9 - 25% Avg. Margin: 10 - 40% CleanSpark’s Distributed Energy Resource (DER) Solutions Manage Power Flow to Create the Benefits our Customers Care About: B
Slide 5: Our Technology Is Critical to Integration of Power Generation & Storage Assets
Patented Intelligent Controls and Analytics SOFTWARE Critical Infrastructure Equipment Transmission & Distribution OUR TECHNOLOGY IS CRITICAL TO THE INTEGRATION OF POWER GENERATION& STORAGE ASSETS CLEANSPARK BRANDS Switch gear Customer Building Software Controller MicroTurbines Fuel Cell Solar Panel
Slide 6: Customer Value Propositions
Energy Cost avoidance Energy Resiliency CUSTOMER VALUE PROPOSITIONS – WE PROVIDE SOLUTIONS TO MEET OUR CUSTOMERS EXPANDING NEEDS OUR BUSINESS Standardized Plug - and - Play Ecosystem Flexibility for the Future ENABLED BY OUR SOFTWARE Advanced optimization of power systems Enabling Distribution and I
Slide 7: Opportunity Through Integration
OPPORTUNITY THROUGH INTEGRATION SOFTWARE PARALLELING SWITCHGEAR Integrated strategy Pioneer Custom Electric Products (PCEP) was recently awarded a contract to build a $2.3 million parallel switchgear project with integrated energy monitoring software for a foreign embassy. CleanSpark can now provide
Slide 8: A Growing Ecosystem of Partners Creating Revenue Growth
O TC : C L S K C O N F ID E N T I A L A GROWING ECOSYSTEM OF PARTNERS CREATING REVENUE GROWTH CHANNELS TO MARKET DEVELOPERS& ENGINEERING,PROCUREMENT,ANDCONSTRUCTION DISTRIBUTORS ENERGYSTORAGEVENDORS Strong foundation of trusted relationships cultivating an ecosystem of deal - flow SELF - DEVELOPMENT
Slide 9: Equipment Customer Segments
EQUIPMENT CUSTOMER SEGMENTS BACKUP GENERATION PARALLELING SWITCHGEAR INTEGRATED POWER CENTER Multi - year relationship First order 6/2016 $5mm annualized sales Systems provided power through Hurricane Harvey Deployed on Multiple US Embassies Expected 10 year deal flow Most recent project $2.3mm in r
Slide 10: Software and Microgrid Customer Segments
SOFTWARE AND MICROGRID CUSTOMER SEGMENTS TURNKEY MICROGRID DESIGN, ENGINEERING AND DEVELOPMENT SERVICES Portfolio strategy – full property portfolio was analyzed and ranked for ability to economically optimize power Cost avoidance is key driver Economically optimized solutions designed by CleanSpark
Slide 11: Software and Microgrid Products
SOFTWARE AND MICROGRID PRODUCTS CLEANSPARK OFFERS A FULL SUITE OF POWER MANAGEMENT SOFTWARE FROM MODELING TO ACTIVE CONTROLS mVSO delivers the answers needed to make confident energy investment decisions mPulse™ intelligently manages and optimizes energy assets to maximize benefits through machine l
Slide 12: Microgrid Value Stream Optimizer
MICROGRID VALUE STREAM OPTIMIZER Delivering the answers needed to make confident energy investment decisions. OTC:CLSK CONFIDENTIAL
Slide 13: Patented Forecasting – mPulse
PATENTED FORECASTING – M PULSE TM CLEANSPARK ENABLES CUSTOMERS TO MANAGE POWER FLOW AND CREATE POSITIVE OUTCOMES mPulse™ Secures our Customers Cash - Flows mPulse™ is built with a forward - looking design meant to mirror evolving regional energy markets by running a virtual market at each multi - DE
Slide 14: _ $1 _ $.3 million dollar rvlicrogrid . . Optimized in fl7V?O . c
_ $1 _ $.3 million dollar rvlicrogrid . . Optimized in fl7V?O . c 1 _ n 9 Poweret j b Y CleanSpar k 1 s mPulse Platfqrm, . Ex p ecte d _ . . .. Comp .. letioh Augqst _ 2019 CONFIDENTIAL Powered by SPAr<K www.cleanspalk.com
Slide 15: Cost Reductions in Solar Modules and Energy Storage
Cost reductions in Solar Modules and energy storage is changing the energy market COST REDUCTION TECHNOLOGY IMPROVEMENTS OPPORTUNITY COST REDUCTIONS AND TECHNOLOGY SUPPORT MICROGRIDS OTC:CLSK CONFIDENTIAL
Slide 16: Distributed Energy Market Growth
DISTRIBUTED ENERGY MARKET GROWTH ENERGY STORAGE MARKET WILLLEAD GROWTH The US energy storage behind - the - meter market grew 79 % year - over - year in 2017 ( GTM Research 2018 ) Bloomberg New Energy Finance forecasts the global energy storage market will “double six times” from 2017 to 2030. THE G
Slide 17: Microgrid Controls Market Sizing
MICROGRID CONTROLS MARKET SIZING O BUSINESS PRESENTTAI N DESIGN GLOBAL MARKET Roughly $500 million was invested into controls technology in 2017 and that figure is expected to increase annually to over $2 billion in 2026. OTC:CLSK CONFIDENTIAL
Slide 18: Microgrid Market Trends
MICROGRID MARKET TRENDS 18 $9 . 8 $12 .2 $15 . 9 $19.8 $25 . 8 $32 . 3 $40 . 7 $10 $0 $20 $30 $40 $50 2016 2017 2018 2019 2020 Total Global Microgrid Revenue ($ in billions) 201 4 2015 Source: Navigant Consulting CAGR: 27% Global Microgrid Market: Estimated $9.8 billion in 2014 and projected to exce
Slide 19: Switch Gear Market Sizing
SWITCH GEAR MARKET SIZING GLOBAL MARKET It is projected that $1.17 billion will be invested into parallel switchgear in 2018, and by 2023, the market should exceed $1.5 billion. Source: Researchandmarkets.com 2 0 18 2 0 19 2 0 20 2 0 21 2 0 22 2 0 23 $ 1. 55 $ 1 . 20 $ 1 . 00 $ 0 . 80 $ 0 . 60 $ 0 .
Slide 20: Microgrid Controller Leaderboard
Microgrid Controller Leaderboard Published Q2/2018 CleanSpark’s vision, forward thinking and execution earns it a place amongst the largest players in the industry while remaining vendor agnostic. “All 15 companies are positioned to emerge as leaders in the next 10 years.” OTC:CLSK CONFIDENTIAL INDU
Slide 21: Our Customers Are Our Megaphone
O TC : C L S K C O N F ID E N T I A L We’re thankful to be of service. OUR CUSTOMERS ARE OUR MEGAPHONE
Slide 22: Appendix
A PP EN D I X OTC:CLSK CONFIDENTIAL
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM 23 Chief Executive Officer S. Matthew Schultz Mr. Schultz, Chief Executive Officer, has been involved in many capacities with several publicly traded companies. Most recently, he served as the President and CEO of Amerigo Energy, Inc., creating multiple syndicated offerin
Slide 24: Combined Enterprise Increases Strength in Market
O TC : C L S K C O N F ID E N T I A L COMBINED ENTERPRISE INCREASES STRENGTH IN MARKET STRATEGIC MARKET LEVERAGE The acquisition of Pioneer CPI has added the value needed to push CleanSpark into a strategic position as a market leader after the independent Navigant microgrid controller leaderboard s
Slide 25: Financial Statement: Balance Sheet
FINANCIAL STATEMENT OTC:CLSK CONFIDENTIAL Balance Sheet Q4 2017 Q1 2018 Q2 2018 Q3 2018 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 ASSETS Current assets Cash 57,128 41,912 172,222 17,481 Accounts receivable 41,947 26,400 55,230 34,022 Deposits - current - 33,392 338,999 9,325
Slide 26: Financial Statement: Income Statement
FINANCIAL STATEMENT OTC:CLSK CONFIDENTIAL Income Statement For the Three Months Ended Q4 2017 Q1 2018 Q2 2018 Q3 2018 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Revenues 447,963 18,080 120,265 328,586 Cost of revenues 296,295 6,468 77,277 288,400 Gross profit 151,668 11,612 42