Flux Power, Inc Leading the Charge with Lithium - ion Batteries May - - PowerPoint PPT Presentation

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Flux Power, Inc Leading the Charge with Lithium - ion Batteries May - - PowerPoint PPT Presentation

Flux Power, Inc Leading the Charge with Lithium - ion Batteries May 28, 2020 1 Safe Harbor Language Forward Looking Statements: This presentation contains forward-looking statements. All statements other than statements of historical fact


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Flux Power, Inc

May 28, 2020 1

“Leading the Charge with Lithium-ion Batteries”

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Safe Harbor Language

May 28, 2020 2

Forward Looking Statements:

This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to the Company’s future results of operations and financial position, planned products and services, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “aims,” “predicts,” ”potential,” “seeks,” attempts,” “poised“ or “continues” or the negative of these terms or

  • ther similar words. These statements are only predictions. The Company has based these forward-looking statements largely on its current

expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of

  • perations. Also, these forward-looking statements represent the Company’s estimates and assumptions only as of the date of this presentation.

The Company assumes no obligation to update any forward-looking statements after the date of this presentation. This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the industries in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by the Company.

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Who is Flux Power?

▪ Designer, developer, manufacturer, and seller of lithium-ion battery packs that replace inefficient and environmentally undesirable lead-acid packs in industrial equipment ▪ $37M invested-to-date in Flux Power. ▪ Unique modular design and proprietary software lends itself to tremendous flexibility. ▪ Investment and engineering talent have yielded unique lithium-ion solutions that offer compelling economic advantages as well as environmental benefits. ▪ Over 5 years of relationship building has positioned Flux Power for significant revenue growth and margin improvement in 2021-2022. ▪ Relocated this past year to 65,000 sq ft facility with production capacity for $100M revenue annually.

May 28, 2020 3

Flux Power LiFT Pack ISO 9001 Certified Assembly Facility in Vista, CA

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Large Addressable Market

▪ $2.5 Billion addressable, annual revenue potential. ▪ Only 1% of the addressable market is penetrated by lithium. ▪ Fragmented “start-up” competition; large battery OEMs slow to migrate to lithium (requires different sales and service infrastructure). ▪ Lithium now offers economic benefits and is green. ▪ Flux packs can also be “dropped in” to forklifts and replace “end of life” lead acid batteries.

May 28, 2020 4

Electric Trucks Class 1 Sit-on/counterbalanced Class 2 Narrow Aisle Class 3 Walkie Pallet Class 3 End Riders/Center Riders Internal Combustion (IC) Trucks Class 4 IC, Solid Tires Class 5 IC, Pneumatic Tires Class 6 Electric and IC Tractor/Trailers Class 7 Rough Terrain Forklift Trucks

Note: OSHA Classifications IC includes: propane, gasoline, diesel,

Forklift Type Description Sit-on Walkie End Rider Electric Trucks Internal Combustion Trucks Class Tractors/Rough Terrain Trucks Narrow Aisle

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Lithium-ion: lower cost/higher performance vs Lead Acid

▪ More efficient

➢ Longer lasting per charge ➢ Less ‘wasted’ energy ➢ CO2 Savings

▪ Faster to charge

➢ Less downtime ➢ Multiple shifts: replace 3 lead acid batteries with one lithium

▪ Longer life ▪ Sustained voltage

➢ Full performance throughout

  • perating shift

➢ No maintenance

▪ Net effect: Lower cost

May 28, 2020 5

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SLIDE 6

Competitive Landscape

May 28, 2020 6

  • Only 1% forklift market penetrated by Lithium
  • Key competitors (each having annual lithium sales < $20million:
  • Navitas
  • Electrovaya (Toronto based)
  • Green Cubes (half forklifts, half medical devices)
  • One Charge (Irvine, CA)
  • Ensol (Seattle)
  • Triathlon (German, with an office in Dallas)
  • Large OEM battery companies slow to introduce lithium offerings
  • Fuel Cell products focus on sites with 200 or more forklifts, 3 shifts with 5 minute charging

requirements (vs 1-2 hours for lithium), and high capital cost.

  • Propane: some customers who have been eager to migrate to our lithium due to environmental

concerns.

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2009 4Q18 2016 2014 2013 1Q19 3Q18

Company founded with focus on EV battery packs Focus shifted to Industrial transport market Class 3 Walkie LiFT Pack introduced in 2014 Class 3 Walkie LiFT Pack UL Approval

  • Only pack tested & approved by major OEM’s: Toyota,

Raymond, and Crown Equipment

  • Class 1 “Counter Balance” launched
  • Airport GSE shipped first two large orders

Class 2 Narrow Aisle launched Class 3 End Rider (Q1 CY 2019)

  • Roll out full line of UL Listed packs.
  • Introduce lower cost/higher performance BMS
  • Class 1 L Series: 3wheel Counterbalance

FY20

A Decade of Energy Storage Pedigree

Full Suite of Energy Storage Products

2Q20

Cobia: lowest $/kWh product

7

Using Lithium Iron Phosphate (no cobalt)

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SLIDE 8

Flux Power Advantages

▪ Proprietary engineering, design, & battery management system: 2 patents granted, 5 pending ▪ Strong OEM, Distributor & Customer relationships

✓ Private label product launch Q1 2019 ✓ Large orders with Fortune 100 Customers

▪ Industry leading unit shipments; rollout of full product line

✓ 6,000 units over 6+ years: Proven track record

▪ Only UL Listed walkie pack for sale across all OEM forklifts ▪ ISO9001 Approved, PPAP approved for OEM supply

May 28, 2020 8

Approvals:

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Private Label OEM Relationship

Leading Global Forklift OEM ($3B revenue)

▪ Flux Power Walkie Pack is provided as a “private label” under OEM brand; launched April 2019 ▪ Audit on site by OEM, validating quality ▪ Future plans include marketing to Europe, S. America ▪ Currently developing a follow-on proprietary model for OEM new Class 3 forklift ▪ OEM has given validation and support of Flux Power products and service ▪ Relationship built over several years of in-depth dialogue and collaboration

Relationship Benefits

▪ Catalogue listing and marketing exposure dramatically increases industry credibility ▪ Leverage sales of full product line at over 200 OEM dealer locations ▪ Substantially enhances Flux Power’s competitive position in market ▪ Private label demand expected to drive volume/production and sales/marketing economies ▪ Flux Power will continue to serve all major lift equipment makes

May 28, 2020 9

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Modular Designs for Full Product Line: Very Scalable

May 28, 2020 10

2-Tier Blade (GSE/Class 1) 3-Tier Pack (Class 2/Class 3) 1-Tier Pack (Class 3) Launched 2018-19 and Fit Most Models d fits Launched 2014

Class 2 Narrow Aisle Ground Support Equipment Class 1 Ride-On Class 3 End Rider Class 3 Walkie 1.7 to 4.3 kWh 16 to 48 kWh 21.6 to 32 kWh 21.6 to 31 kWh 9.6 to 14.4 kWh

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Benefits of Modular Design

▪ Flexible and conducive to product variations ▪ Limited component basket delivers vast product range ▪ Reliability strengths read across all applications ▪ Core components can be utilized in custom applications ▪ Power and control components can be distributed throughout a vehicle if needed ▪ Family familiarity: ▪ User / Technician / Fleet Manager / Distributor / Designer / Production ▪ Low spare parts requirement

May 28, 2020 11

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Flux Power “Sky BMS” Telematics

May 28, 2020 12

1

Data is sent to telematics units Data is transmitted via cellular or Wi-Fi connection Data is stored in a cloud base Data is translated and displayed to the customer

2 3 4

Access to Fleet Management and Diagnostics Anywhere

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5-Year Cost Savings: Lithium-ion vs Lead Acid

May 28, 2020 13 Battery Costs

Lead-Acid M-Series Net

Price per Battery 4,000 $ 12,000 $

Savings

Expected lifetime (years) 6 10 Batteries per unit 2 1 Total batteries in 5 years 1.7 0.5 Number of Trucks in fleet 10 10

Total 5-Year Battery Cost

66,667 $ 60,000 $ 6,667 $

Operating Costs

Watering System Cost 300 $

  • $

H2O Maintenance (mins/wk/bat) 2 H2O Maintenance Rate ($/Hr) 60 $

  • $

Staff Labor Rate ($/ Per Hour) 20 $

  • $

Change-out time (mins) 5 Change outs/week/truck 7 Total Staff Labor-hrs/week 6

Total 5-Year Operation

36,167 $

  • $

36,167 $

Energy Savings

Energy Cost (kWh) $0.14 Efficiency Gain 40% Battery Voltage (V) 36 Battery Capacity (Ah) 400 8 hour shifts per week 14

Total 5-Year Cost

51,368 $ 30,821 $ 20,547 $

Metric Tons of CO2 Saved: 109

Warehouse Space

Cost per square foot per month $0.30 Square footage saved 800

Total 5-Year Cost

14,400 $

  • $

14,400 $

5-Year Total

168,601 $ 90,821 $ 77,780 $

Annualized Total

33,720 $ 18,164 $

15,556 $

“End Rider Fleet” (10 units):

▪ Battery savings $6,667 ▪ Operating savings $36,167 ▪ Energy savings $20,547 ▪ Warehouse space $14,400 ▪ 5-Year Total Savings $77,780

Percent Savings vs Lead Acid

46%

Environmental Impact:

▪ 109 tons of CO2 Saved ▪ No EPA monthly lead acid reporting ▪ No acid spills in warehouse

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SLIDE 14

Fortune 100 Manufacturing Company ROI

Class I Forklifts (80 units)

▪ Battery savings $0.3M ▪ Operating savings $5.8M ▪ Energy savings $0.2M ▪ 5-Year Total Savings $6.3M

Percent Savings vs Lead Acid

81% Environmental Impact

▪ 2,000+ tons of CO2 Saved ▪ No EPA monthly lead acid reporting ▪ No acid spills in warehouse

May 28, 2020 14 Battery Costs

Lead-Acid L/X-Series Net

Price per Battery 6,500 $ 22,000 $

Savings

Expected lifetime (years) 5 7 Batteries per unit 3 1 Total batteries in 5 years 3.0 0.7 Number of Trucks in fleet 80 80

Total 5-Year Battery Cost

1,560,000 $ 1,257,143 $ 302,857 $

Operating Costs

Watering System Cost 300 $

  • $

H2O Maintenance (mins/wk/bat) 11 H2O Maintenance Rate ($/Hr) 60 $

  • $

Staff Labor Rate ($/ Per Hour) 35 $

  • $

Change-out time (mins) 22 Change outs/week/truck 21 Total Staff Labor-hrs/week 616

Total 5-Year Operation

5,843,100 $

  • $

5,843,100 $

Energy Savings

Energy Cost (kWh) $0.08 Efficiency Gain 50% Battery Voltage (V) 36 Battery Capacity (Ah) 600 8 hour shifts per week 19

Total 5-Year Cost

478,034 $ 239,017 $ 239,017 $

Metric Tons of CO2 Saved: 2,223

Warehouse Space

Cost per square foot per month $0.30 Square footage saved

Total 5-Year Cost

  • $
  • $
  • $

5-Year Total

7,881,134 $ 1,496,160 $ 6,384,974 $

Annualized Total

1,576,227 $ 299,232 $

1,276,995 $

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Add a footer

Full Product Line Offerings for Large Fleets

Equipment

Flux Pack Size

Class 3 Walkie High volume workhorse

  • Avg. Revenue: $3,400

Class 1 Counter Balance 10X energy of Walkie

  • Avg. Revenue: $20,000

Class 3 End Rider Market volume similar to Walkies 4X energy of Walkie

  • Avg. Revenue: $9,000

Class 2 Narrow Aisle Narrow Aisle, High Growth 10X energy of Walkie

  • Avg. Revenue: $18,000

Airport GSE Modular design similar to Class 1 14 x energy of Walkie

  • Avg. Revenue: $20,000

May 28, 2020

15

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May 28, 2020 16

Beverage Food Distribution Manufacturing Retail/Grocery Airport GSE

Industries and Customers Being Served

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Flux Power Financial Snapshot (OTCQB: FLUX)

Closing Price (5/21/2020): Post 10-for-1 split $8.90 52 Week Range $3.80 – $15.00 Shares Out 5.1M Revenue FY20 Q3-to-date $10.6M Invested-to-date $37.3M Backlog as of March 31, 2020 $6.5M Borrowing on Inventory Lines of Credit * $12.0 M FY 2019 Revenue (6/30/19 FY) $9.3M

May 28, 2020 17

*$Short-term notes. No long-term debt.

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Leadership Team

May 28, 2020 18

Ron Dutt: CEO, Director

Leadership at DHL, Ford Motor Company, Visa, Directed Electronics and SOLA Int’l. Led companies from early stage to >$1B rev.

Paulus Geantil: CTO

Expert in embedded systems, electrical design, robotics, & system integration and has patents across various technologies.

Jon Berry: COO

Senior roles at Alstom Transport, PACCAR UK, Clean Air Power and Pilkington Aerospace.

  • Certified first tilting train for passenger operation in UK
  • Supplied Alt fuel components direct to Volvo trucks

Sweden assembly line.

Tod Kilgore: Director of Sales

Led sales organization at Samina Corporation, Accurate Solutions, Amistar Manufacturing and Marshall Industries.

Steve Fambro: Director of Mfg

Executive success with high growth startups in Biotech, Automotive and VLSi Agriculture

Chuck Scheiwe: CFO

Led accounting and financial planning operations of diverse companies, Senstay Reptron & Teletrac and GreatCall, from startup stage to high growth

Tim Vaughan: Director of Engineering

Experienced automation and process improvement Engineer, including medical and aerospace industries with John Deere & Veridiam.

Justin Forbes: Director of BD

Led marketing and lead generation at industrial & technology companies such as GE, EDF Renewable Energy and Vektrex.

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Why Flux Power Now?

▪ Poised for growth in 2021-2022 ▪ Top line revenue growth and improving margins ▪ Leverage relationship with top OEMs ▪ Ample manufacturing capacity to meet demand ▪ Customers are seeking solutions that are both economic and green. ▪ Opportunity to create company value: ie, right time, right place

May 28, 2020 19

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Thank you!

May 28, 2020 20

Contact: Justin Forbes 877-505-3589 info@fluxpower.com 65,000 Sq.Ft. Vista, CA Facility