Presentation Transcript

1. releasing energy to the world Battery Energy Storage System (BESS) & Community Energy Systems (CES) Investor Presentation Confidential
2. Preface This document contains forward-looking statements, estimates and projections provided with respect to Exergonix’s anticipated financial performance that are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. These factors include, among others, general economic conditions and conditions in the battery manufacturing, aerospace, defense, automotive, medical device, and related industrial sectors, risks that customers may not purchase manufactured items as anticipated, and other similar risks within the industry. Information in this presentation was developed based on historical and projected financial information obtained from Exergonix. This presentation has been prepared for the sole use of the recipient and its representatives. The Company considers the information in this presentation not otherwise publicly available to be proprietary and confidential. This presentation is prepared as of August 15, 2010 and reflects information available as of that date.
3. The Company and Investment Needs Company has been developing grid-scale energy storage systems for several years Community Energy System (CES) – from 1 Kilo-Watt-hour (KWh) to 100KKh Battery Energy Storage Systems (BESS) – from 100KWh to 1 Mega-Watt-hour (MWh) Looking to scale up production in the US with a 250 sq. ft. facility to manufacture 200MWh Based on a proven Kokam Lithium battery design, but modified with an exclusive license agreement for utility markets using nanomaterials introduction of nanomaterial for improved life, performance and safety patented metal case design for 10+ years of calendar life performance Supply agreements with 4 key Kokma cell manufacturing plants for cell supply Company holds IP on system design and power electronics Developed key technologies in-house and acquired several needed technologies 20+ patents on file Secured DOE/federal funded demonstration projects and ready to deliver to customers 1MWh system to be installed in Kansas City – DOE funded with major utility company KCP&L 25KWh systems to install with AEP – DOE funded with major integrator S and C Two major projects for CES and BESS to be installed in California and Missouri Military base cyber security project pending with the USAF Contracts to initiate projects in Europe with RWE and in Asia with Edison Investment opportunity with bridge financing and equity round for plant expansion in the US Needing equity part to support a DOE Loan Guarantee for $100M (minimum 20% in equity required) Bridge to be closed August 31st for $3M in convertible debentures at a 25% discount and 10% interest Equity A Round to close November 1st for $27M – with the same group that did the Bridge financing under same terms
4. Company Strategic Relationships and Formation Strategic Relationships with Cutting Edge Technology Development Acquiring the right technology for growth Patented superior lithium polymer battery Established strong network and expertise 200MWh cell supply capacity Supply Agreements Wholly Owned Companies Advanced Power Engineering company Developed one of the first 1MWh BESS Producing CES for smaller scale utility Protected IP through M&A and R&D Strong and experienced management team Globally positioned to support business in the Americas, Europe and Asia Manufacturing expertise and scale up to 1.2 Billion Wh US France Battery Pack and design development and manufacturing Canadian Profit 100 in 2009 Design , develop and manufacture automotive systems, assemblies and vehicle components – licensed to manufacture Kokam cells Support Companies (Contractors) License Agreement Advanced Nano Chemistry Advanced Cell Design
5. Organization Strong and Proven Track Record Don Nissanka (CEO) Founder, President and CEO of Kokam America Inc. (Dow Kokam) and instrumental in capitalizing the company to over $1 billion in 2009. Don remains a significant stakeholder in Dow Kokam. He formed Exergonix focused on the utility energy storage market and brings 20+years energy and power experience from prior companies like Gates and Hawker Energy. He was also a former Director atEnerSys, the worlds largest industrial battery company where he built a successful career specializing in defense and aerospace energy system. Don holds a BSc and MSc from the University of Central Missouri, is an advisory board member in the College of Business, and was awarded the 2006 Distinguished Alumni of the Year. Steve Carkner (CTO) Founded Panacis, a product development and manufacturing company that partnered with a broad spectrum of industries producing power electronics. Panacis was listed on the Canadian Profit 100 in 2009 with five-year revenue growth exceeding 1900% ranked at #22. Steve was formerly Director of Product Development at Research In Motion (RIM), listed as a co-inventor of the Blackberry pager andwas instrumental in the growth of RIM from a small 12-person consulting company into a multi-billion dollar wireless-focused corporation. He is listed as an inventor on several dozen patents world-wide and holds a BSc in Electrical Engineering from Queen’s University in Kingston Canada. Ike Hong (EVP) Ike brings several years of experience working for a number of family owned business in South Korea. His farther, Mr. JJ Hong, the founder of Kokam Co. Ltd. and the inventor of the Superior Lithium Polymer Battery (SLPB) technology is a key supporter of Exergonix and is credited for developing several key technologies used by Exergonix. The advancements made in patenting the new Nano material and the high power cells and electronics developed stands out to be the next era of innovation for the utility market where Ike was instrumental. Ike holds a BSc in Electrical Engineering from University of Southern California and is a voluntary Officer in the South Korean Army. Brent Franzel (General Counsel & VP ) Brent has been involved in federal and state government for nearly 30 years.  A former legislative staff of then Missouri Governor Christopher S. Bond., Brent worked as Director of Policy Development and Research on Bond's first Senate campaign.  He also served as Legislative Counsel to Bond with direct responsibility for appropriations, national defense and international trade issues.  Later he became Staff Director of the International Finance Subcommittee of the Senate Banking Committee.  He has worked with a wide range of clients helping them to interact with Congress and federal agencies. And his clients range from Fortune 50 companies to new technology start ups; from large urban municipal agencies to small rural cities, and from large universities to community colleges.  Brent is a graduate of the University of Missouri School of Journalism and the Duke University School of Law. Brian Radburn (CFO) Brian is a chartered accountant and has 25 years of in-depth executive experience in the field of public accounting and financial reporting. Prior to joining the team, Brian served as an audit partner with PricewaterhouseCoopers LLP, where he worked closely with emerging companies to align financial strategies with corporate goals. Brian sits on the boards of a number of business organizations and charities, including roles as Chair of the Board of Trustees of the Children’s Hospital of Eastern Ontario. As a business and community leader, Brian is a strong contributing member of the Executive Team. He holds a Honors Bachelor of Commerce and a Bachelor of Administration from the University of Ottawa and brings experience in M&A, public and private accounting. Greg Bridgett (COO) Greg brings more than 10 years of technology development and business management experience to the executive team. He comes from Research In Motion where he was a founding member of the BlackBerry product development, business development, and global strategic alliances teams. Greg had headed operations at Panacis putting the company on the Canadian Profit 100 list. He holds a Honours Applied Science degree in Computer Engineering at the University of Waterloo.
6. Advanced Battery Technology Designed for Utility Markets Using patented nano battery technology Enhanced cell performance for utility applications: Higher Power Density – higher W/kg, close to 2200 W/kg. High Energy Density - lighter weight, close to 200 Wh/kg. Fast Charge Capability – up to 6C continuous. High Discharge Rates – up to 30C continuous. Long Cycle Life – greater than 6000 cycles at 100% depth-of-discharge (results in 10+ year life). Wider Operating Temperature – between -30°C to +60°C. Improved safety - lower impedance cell design that reduces heat generation in operation. In-cell fuse – provides fail-safe short circuiting protection. Lower production cost - automated process developed by Kokam. Scalable – ability to economically mass produce cells in volume. Nano based Lithium ion cell Technology Kokam Advanced battery Battery Energy Storage System (BESS) Environmental Considerations zero Community Energy System (CES)
7. BESS and CES Manufacturing Flow Assembled into CES Battery Module Bidirectional Inverter Power Control System (PCS) Nano Li-Ion Cells Packaged in sealed steel cans with vents Battery Management System Rack of Modules for BESS Power Control System (PCS) Converter VCB Battery Storage CES Assembled in 1KWh to 100KWh Systems PCS Transformer Fire Suppression Containerized BESS Shipping in 1MWh or smaller systems
8. High Efficiency System Interface with the Grid Grid AC AC Charge: Discharge: Roundtrip Efficiency >90% DC DC IP Protected Technology Fully Integrated Complete Solution Designed for Mobility
9. IP Protected Design IP Protection Extends to: Battery Management Software Cell Chemistry and Packaging High Power Electronics
10. Demand for Efficient Storage is Rising Benefits [Applying BESS and CES] Demand for BESS storage is increasing – EV, factories, infrastructure, etc Storage for clean energy market is inevitable - applications include Peak sheaving Load leveling, Charge stations for electric vehicles Back-up power storage Storage for renewable energy – wind, solar, etc. Demand for appliance autonomy Demand for light weight power sources Direct Grid Power Discharge Frequency Regulation Charge off Peak Total Market Size: 8,5000 MW – U.S 450,000 MW – The World 25% of market share today $1.98 Billion by 2015 1,321 MW $2.16 Billion Energy Storage Solutions for Smart Grid A Range of Applications and Demand is Rising $ 300 Million Produced 147 MW in 2009
11. Well thought out US Execution Plan US World Headquarters – Lee’s Summit, Missouri Planned 250 sq. ft. facility – Sept. 2011 85 Acers secured for site ~ $1.5M State and Local incentives secured ~ $20M Facility to manufacture 200MWh of BESS and CES production with 275 employees DOE application for $100 million submitted August 2010 Low cost - 20 year borrowing for a BBB rated company at 500 basis points over treasuries and DOE Loan Guarantee reduces this to 25 basis points. Extension of term from 15 years to 30 years Improved IRR and accessibility to guaranteed debt. Maintain low dilution to initial equity partners Pilot Manufacturing in South Korea Supported by Ottawa, Canada and Tucson, AZ Facilities R&D Engineering Small Systems Mfg. Ongoing Proposed New Plant in Lee’s Summit INVESTMENT Bridge closes August 31 with Convertible Debentures Total Raise is $3M Discount of 25% Automatic conversion on equity round 10% interest Equity Round for $27M Closes November 1 Original Bridge holders participate under preferred terms as one A Round
12. Financials
13. Thank You