1 November 4, 2019 Forward Looking Statements Some of the - - PowerPoint PPT Presentation

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1 November 4, 2019 Forward Looking Statements Some of the - - PowerPoint PPT Presentation

Annual General Meeting 1 November 4, 2019 Forward Looking Statements Some of the information provided in this presentation constitutes "forward-looking information" within the meaning of applicable securities legislation. Specific


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Annual General Meeting November 4, 2019

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Forward Looking Statements

Some of the information provided in this presentation constitutes "forward-looking information" within the meaning of applicable securities legislation. Specific forward-looking information in this presentation includes statements regarding anticipated financial and operating results, the future of residential and commercial energy storage in the power industry, the potential value of the Company's addressable market, the value of the Company's energy storage inverter, anticipated revenue growth and potential, the anticipated size of the Company's market share, anticipated demand for solar energy and power conversion, and anticipated timing and outcome of potential strategic transactions. Forward-looking statements reflect the Company's current expectations as to future events and are based on information presently available. Forward-looking statements are not guarantees of the Company's future performance and involve known and unknown risks, uncertainties and assumptions that may cause actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward- looking statements. These risks, uncertainties and assumptions include, but are not limited to: risks associated with international

  • perations such as political, economic and other uncertainties; the ability of the Company to raise additional capital on acceptable

terms or at all; fluctuations in market value for energy storage power conversion; uncertainty in the Company's ability to develop relationships with other companies; and uncertainty with regards to a strategic transaction. Consequently, no representation can be, or is being, made with respect to accuracy of the projections or the ability of the Company to achieve the projected results. You should not place undue reliance on the forward-looking statements contained in this presentation. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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Eguana – Empowering a Revolution

➢ Leading design and manufacturer of grid interactive energy storage solutions ➢ Globally recognized, certified and patented with performance and cost advantages for residential and commercial markets ➢ Partnered and fully integrated with global battery leader LG Chem ➢ Exclusive partnership with Hanwha Q Cells, Europe’s leading PV panel producer ➢ Mercedes Benz Energy tested and endorsed

“Their technology leadership and product platform is proven with thousands of units deployed in the global market.”

Sunghoon Jang, SVP LG Chem

“We ran the Eguana through 6 months of intense testing to ensure reliability and functionality”

Gordon Gassmann, CEO Mercedes Benz Energy

“The addition of the Eguana Enduro to our Q.HOME package will allow us to maintain our leadership position”

Vincent Lim, Head of Bus.Dev. Q Cells

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Eguana – Decades of Experience

2002 – 2012

  • Developed high efficiency low

voltage inverters for grid interactive fuel cells

  • Developed and demonstrated

Li-Io battery storage platform for US military

  • Commercialized PCS platform

in distributed solar PV applications

2013- 2015

  • Launched

Bi-Direx power control system for grid interactive energy storage devices in Germany

  • Delivered over 5,000 Bi-Direx

systems into growing German energy storage market

  • Introduced “AC Battery”, fully

integrated power control solution with LG Chem battery technology 2016 – 2017

  • Developed fully integrated Home Battery

system for Mercedes Benz Energy

  • Established leadership position in Hawaii

with AC Battery

  • Launched Australian AC Battery
  • Patented
  • Auto Recovery Control
  • Pre Charge Circuitry and Control
  • Output Control for AC Coupled Systems
  • Seamless Transition Between Control Modes

2018 – 2019

  • Launched

Evolve, Elevate and Enduro – fully integrated energy storage systems worldwide

  • Signed European exclusive private

label deal for Enduro with Hanwha Q Cells

  • Signed

contract with South Australian Government for Home Battery Scheme

  • Partnered with Simply Energy for

Australian VPP

  • Completed

standardized

  • nboarding process, trained over

400 installers/dealer partners to be Eguana certified

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Business Model Transition 2016 - 2019

2016-2017: OEM Model ➢ Private label strategy ➢ Utilize EMS partners as sales channels ➢ Developed fully integrated Home Battery System for Mercedes Benz Energy for global distribution under Mercedes Brand 2018-2019: Eguana Branded ➢ Developed Eguana branded solutions for direct installer sales ➢ Expand sales team in USA, Europe, and Australia ➢ Launch factory assembled, fully integrated storage solutions ➢ Partnered with Europe’s largest solar installer Q CELLS

MBE exits stationary storage market MBE endorses Eguana

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F2019 Commercial Strategy Recap – Boots on the Ground

➢Sales and technical sales growth in Europe, USA, and Australia ➢USA outreach program – Convert MBE distribution pipeline ➢Utilize MBE endorsement, engineering report and LG Chem relationship to accelerate global brand building ➢30% cost reduction on the Evolve

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2019 Boots on the Ground Outcomes

➢ North America

  • Dedicated sales team in California, +65 new partners, +400 Eguana trained personnel
  • Distribution partnership with +10 CED Greentech outlets nationally
  • T
  • p two solar players in Puerto Rico (Maximo / New Solar PR)
  • Residential & CommercialVPP in Massachusetts and Maine

New England Hawaii Georgia Puerto Rico

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2019 Boots on the Ground Outcomes ➢Australia

  • Opened Australia Pty in Adelaide, South Australia
  • South Australian government contract for Home Battery Scheme
  • Simply Energy partnership for residentialVirtual Power Plant
  • 15 dealer, distributor, installer partners

Melbourne Adelaide Brisbane Wingfield

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2019 Boots on the Ground Outcomes ➢Europe

  • Opened Eguana GmbH in Dresden, Germany
  • Completed multi year private label agreement with Hanwha Q CELLS
  • Supported Q CELLS expansion with Enduro (UK, Ireland, Scandinavia)
  • Q CELLS estimates +17,000 new solar installations / year

(Germany avg 50% attach rate) United Kingdom Amsterdam Ireland

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Q CELLS – Europe’s Solar Leader

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2019 Boots on the Ground Outcomes ➢Research and Development

  • Introduced Q.Home+, Evolve Hub, Elevate-U
  • 2019 Product certifications
  • Enduro – Germany, United Kingdom, Ireland, Scandanavia,Australia (pending)
  • Evolve – North America,Australia, Europe
  • Elevate – North America,Australia and Europe (pending)
  • Completed Evolve 2.0 concepts and designs
  • Completed Evolve Hub (reduces AC coupled system interconnection costs)
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Partner and Installer Training – Keys to Success

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Global Exposure – Brand Building

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Eguana - Global Reach

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Eguana’s Market Opportunity

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 2023E

Annual Residential Energy Storage Market Size (US$M)

Source: GTM Research

USA Australia Europe

CAGR: 44%

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2020 – Focused Growth !

➢ Complete contract manufacturing transition

  • Enduro November 2019 / Evolve NA February 2020 / Evolve Aus March 2020)

➢ Global after sales service and support program ➢ New company branding, marketing, investor interaction, and website ➢ Introduce Evolve 2.0 to global market ➢ Execute 20% cost reduction plan across all products

  • Planning phase complete for all products
  • Q.Home+ Phase 1 Q4 FY’19 / Q.Home+ Phase 11 Q1 FY’20
  • Evolve Hub Q1 FY’20

➢ Cashflow positive run rate by Q3

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Focused Growth

Hawaii

  • S. California

Europe

  • S. Australia

Primary HEC CED Hanwha Q Cells ACSW Relationship 5 years 1 year 1 year 1 year 2020 Revenue $8 - $11M $3 – $5M $7 - $10M $3 - $5M

Learning from 2019 Hawaii

  • Market rules have stabilized. Zero export market is unattractive for solar lease model
  • 2020 Focus: Eguana assembly and support facility on Oahu to support HEC’s growth

Southern California

  • Installations split between T

esla and SunRun lease model, Sonnen has fatigued installers and distributors

  • 2020 Focus: Build confidence with CED through dealer success and expand through word of mouth

Europe

  • German market is mature and difficult to penetrate without brand recognition
  • 2020 Focus: Support Hanwha’s growth in Europe
  • S. Australia
  • SA Government has mismanaged HBS program, keeping solar installers on the sidelines
  • 2020 Focus: Support high value customers and

VPPs in SA

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Development Update

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Leading The Storage T echnologies

Feature Eguana T esla SolarEdge/LGC Sonnen Aus Sonnen USA Power (kW) 5 5 5 2.5 8 Proprietary PCS Y N Y N N Factory Integrated System Y Y N Y Y Outdoor Rating Y Y Y N N Self-consumption Y Y Y Y N Backup Power Y Y Limited N Y Solar Supported Backup Y Y Y N N Retrofit to existing PV Y Y N Y Y Use with any PV design Y Y N Y Y Flexible Capacity Y N N Y Y Built-in VPP Capability Y Y Y N N Auto Recovery Y N N N N No water cooling Y N Y Y Y

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Eguana’s T echnology Differentiators

➢ Advanced, Software-focused PCSTechnology

  • Single adaptable platform for global interconnection compliance
  • High Efficiency, High Reliability
  • Fast,Accurate Performance

➢ Advanced Battery Integration

  • Complete, high performance factory-assembled storage system
  • Minimized installation time
  • Battery auto-recovery minimizes site visits

➢ Advanced Networking

  • Remote Commissioning keeps installation crews moving
  • Remote Diagnostics minimizes site visits
  • AgnosticVPP capabilities out-of-the box
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2020 Development – Maintaining Leadership

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  • Use product concept to develop Evolve 2.0 ESS to achieve cost

reduction to increase margin

Evolve 2.0 ESS

  • Elevate 480 AS – Australian 3-phase ESS
  • Elevate 480 EU – European 3-phase ESS

Elevate 480

  • Utilize Evolve 2.0 concepts to develop new inverter solution for

Q.HOME+ ESS

Q.HOME+

  • Faster integration with third party EMSs
  • Efficient remote service and support through third party EMSs
  • Creates an unconstrained path for future improvements

EMS Strategy

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2019 2021 Evolve 2.0 Evolve High Power 2020 Generator Integration

Cost Reductions

230/400V Elevate

Stackability UK Ireland France Belgium PV Inverter Integrations

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2020 – Focused Growth ! Path to Profitability !

➢ Complete contract manufacturing transition to drive 20% average gross margin ➢ Focus markets will take us to profitability (Hawaii/California, Europe, Australia) ➢ Global after sales service and support program completion ➢ Introduce Evolve 2.0 to global market spring/summer 2020 ➢ Cashflow positive run rate by Q3