Investor Presentation June...

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Investor Presentation

June 2015

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Disclaimer

This presentation contains statements that constitute “forward looking statements” under the Private Securities Litigation Reform Act of 1995. All statements

other than statements of historical facts contained in this presentation, including statements regarding our short-term and long-term growth strategies, efforts

to develop and commercialize our products, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of

management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties and other

important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or

achievements expressed or implied by the forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,”

“plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although

not all forward-looking statements contain these identifying words.

These forward looking statements are only predictions and we may not actually achieve the plans, intentions or expectations disclosed in our forward-looking

statements, so you should not rely on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and

expectations disclosed in the forward-looking statements we make. We have based these forward-looking statements largely on our current expectations

and projections about future events and trends that we believe may affect our business, financial condition and operating results.

The information in this presentation is current as of May 2015 and speaks only as of such date. We expressly disclaim any obligation to release any updates

or revisions to any information presented herein, including any forward-looking statements, to reflect any change in our expectations or projections or any

changes in events, conditions or circumstances on which any such information or statements are based for any reason, except as required by law, even as

new information becomes available. All information and forward-looking statements in this presentation are qualified in their entirety by this cautionary

statement.

In addition to results presented in accordance with U.S. GAAP, this presentation and related tables include Adjusted EBIDTA, a non-GAAP financial

measure. We have provided a reconciliation of this measure to the most directly comparable GAAP measure, which is available in “Reconciliations” starting

on slide 20. We use Adjusted EBITDA as a measure of operating performance, because it does not include the impact of items that we do not consider

indicative of our core operating performance, for planning purposes, including the preparation of our annual operating budget, to allocate resources to

enhance the financial performance of our business and as a performance measure under our bonus plan. We also believe that the presentation of Adjusted

EBITDA provides useful information to investors with respect to our results of operations and in assessing the performance and value of our business.

Although we believe this non-GAAP financial measure enhances investors’ understanding of our business and performance, this non-GAAP financial

measure should not be considered an alternative to or substitute for accompanying GAAP financial measures.

The risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2014 and filed with the SEC on March 13, 2015 pursuant to

the Securities Exchange Act of 1934, as amended, are incorporated by reference into this presentation and should be read in their entirety alongside this

presentation.

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Disclaimer

This presentation contains market data and industry forecasts that were obtained from industry publications, third party market research and publicly

available information. These publications generally state that the information contained therein has been obtained from sources believed to be reliable, but

the accuracy and completeness of such information is not guaranteed. This presentation also contains estimates and other statistical data made by

independent parties and by us relating to market size and growth, size of insulation opportunity at various types of energy infrastructure facilities and other

data about our industry. We obtained the industry and market data in this presentation from our own research as well as from industry and general

publications, surveys and studies conducted by third parties, some of which may not be publicly available. For example, this presentation includes statistical

data extracted from an off-the-shelf market research report (World Insulation - #2956) by The Freedonia Group, an independent international market

research firm, and a separate custom market research report by Freedonia Custom Research, Inc., a wholly-owned subsidiary of The Freedonia Group, or

Freedonia, which was commissioned by us and was issued in February 2014. Such data may be outdated and involves a number of assumptions and

limitations and contains projections and estimates of the future performance of the industries in which we operate that are subject to a high degree of

uncertainty. We caution you not to give undue weight to such projections, assumptions and estimates.

The Freedonia Custom Research, Inc. Report, or the Freedonia Report, represents data, research opinion or viewpoints developed independently on our

behalf and does not constitute a specific guide to action. In preparing the Freedonia Report, Freedonia used various sources, including publicly available

third party financial statements; government statistical reports; press releases; industry magazines; and interviews with manufacturers of related products

(including us), manufacturers of competitive products, distributors of related products and government and trade associations. The Freedonia Report speaks

as of its final publication date (and not as of the date of this presentation).

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Experienced Leadership Team

Donald R. YoungPresident & CEO

John F. FairbanksVice President, CFO &

Treasurer

President, CEO and member of Board of Aspen Aerogels since 2001

Prior to 2001, worked in the U.S. and abroad in a range of senior operating

roles for Cabot Corporation

Graduate of Harvard College and earned an MBA from Harvard Business

School

Has served as CFO since 2006

More than 10 years of service as a SVP of New England Business Service, in

senior financial and operating roles

Earned a B.A. in Economics from Middlebury College and an MBA from the

Wharton School of the University of Pennsylvania

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Designs, develops and manufactures innovative, high-performance aerogel insulation primarily used in large-

scale energy infrastructure process facilities

Offers a superior combination of performance and long-term value

End users save money, reduce energy use, preserve operating assets and protect workers

Global network of energy-focused distributors, contractors and engineering firms

Proven market adoption

Used by 24 of the world’s 25 largest refining companies; 19 of 20 largest petrochemical companies

Initial installations in approximately 30% of the world’s 640 refineries

Installed base of >150 million sq. ft., >$375 million of product sales since 2008

Expanding capacity to meet demand

Aspen Aerogels: An Energy Technology Company

Targeted Energy End Markets

USA36%

Canada6%Latin

America9%

Asia Pacific35%

Europe14%

Geography

2014 Product Revenue by Region

REFINERIESPETROCHEMICAL

PLANTS

POWER GENERATION

LNG & GAS PRODUCTION

OFFSHOREOIL SANDS

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Unique Technological Advantages

What are Aerogels?

Aerogels are an amorphous

silica solid

Characterized by impressive

material properties

Lowest density solid -- ~97%

air

Lowest thermal conductivity

Best thermal performance of any

widely used insulation product

Reduced corrosion under

insulation

Compact design and faster

installation

High durability and fire protection

Advantages vs. Traditional

InsulationOur Breakthrough Technology

Industrially robust

Unique product form

Proprietary manufacturing

process

Patent-protected – 77 issued

and 50 pending patents owned

or co-owned worldwide

Proven Manufacturing Process

Pyrogel XT / XT-E / XTF(hot insulat ion)

Cryogel Z(cold insulat ion )

Our Aerogel Products

Step 1:

Fill fibrous batting with a liquid-solid solution

Step 2:

Extract solvents with supercritical carbon

dioxide

Step 3:

Resulting dry,fiber-reinforced aerogel

blanket

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Disruptive Products with Compelling Value Proposition

Best Thermal

Performance

Two to five times better thermal performance

Broad range of applications from -200°C to 650°C

Compact Design

& Faster

Installation

High Durability

and Fire

Protection

Reduced

Corrosion Under

Insulation

Th

erm

al

Co

nd

ucti

vit

y

Temperature Range

Pyrogel XT

Traditional Insulation

Enhances plant safety

Improves reliability

Reduces a major maintenance expense

50% to 80% reduced volume

Space savings

Faster installation time with improved safety and logistics

Excellent compression resistance, tensile strength, and vibration resiliency

Fire protection

Traditional

Insulation

Vapor Permeable

Traditional Insulation;

Installed on site

Transport-ready;

Supports modular construction

Hydrophobic

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415 470 553

73 86104198

226278

512541

603

903

1,089

1,485342

402

523

$2,443

$2,814

$3,546

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2010 2013 2018

$ Millions

USA CanadaLatin America EuropeAsia Pacific Middle East Africa

Overview of The Energy Insulation Market

1,0871,248

1,600

418

484

619

176

199

239

69

81

102

366

418

494

327

384

492

$2,443

$2,814

$3,546

$0

$1,000

$2,000

$3,000

$4,000

2010 2013 2018

$ Millions

Power Generation PetrochemicalOnshore Oil Production Offshore Oil ProductionGas Production Refinery

Energy Insulation End Markets – by Sector Energy Insulation End Markets – by Region

Source: Freedonia Custom Research Report - February 2014.

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Global Distribution Network and Installed Base

Source: Company Management.

Distributor

Contractor

OEM

Installed Base

Installed in more than 40 countries worldwide

28 direct sales employees and 45 distributors

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Industry-Leading End Users

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$28.6

$43.2$46.0

$63.5

$86.1

2009 2010 2011 2012 2013 2014

Revenue Growth

Revenue Growth 2009 to 2014

($ in millions)

$102.4

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Financial Overview

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Financial Highlights

History of top-line growth

Sufficient scale for positive cash flow from operations

IPO proceeds are funding capacity expansions

Expansions expected to offer attractive return on capital

Modest ongoing maintenance capital expenditure requirements

Technology company with significant market adoption

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2014 Financial Performance

Strong top and bottom line growth

Year Ended Change

12/31/14 12/31/13 $ %

See slide 20 herein for a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

($ in thousands)

102,399$ 86,094$ 16,305$ 19%

85,319 75,363 9,956 13%

17,081 10,731 6,350 59%

Operating Expenses 33,123 30,703 2,420 8%

(16,042) (19,972) 3,930 20%

EBITDA Add-backs:

10,183 10,061 122 1%

Stock-based Compensation 8,781 4,426 4,355 98%

Other Items 119 3,670 (3,551) -97%

3,041$ (1,815)$ 4,856$ N.M.

Cost of Revenue

Adjusted EBITDA

Operating Loss

Depreciation & Amortization

Gross Profit

Total Revenue

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Q1 2015 Financial Performance

Revenue constrained, but solid bottom line growth

Three Months Ended Change

3/31/14 3/31/13 $ %($ in thousands)

23,500$ 22,363$ 1,137$ 5%

18,986 19,017 (31) 0%

4,514 3,346 1,168 35%

Operating Expenses 7,259 6,244 1,015 16%

(2,745) (2,898) 153 5%

EBITDA Add-backs:

2,184 2,631 (447) -17%

Stock-based Compensation 1,295 339 956 282%

Other Items - 15 (15) -100%

734$ 87$ 647$ 744%

Total Revenue

Adjusted EBITDA

Operating Loss


Cost of Revenue

Gross Profit


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Quarterly Adjusted EBITDA

History of Positive Adjusted EBITDA

For the Three Months Ended LTM

($ in thousands) 12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15 3/31/15

24,232$ 22,363$ 26,615$ 25,437$ 27,984$ 23,500$ 103,536$

20,649 19,017 23,190 20,365 22,748 18,986 85,289

3,583 3,346 3,425 5,072 5,236 4,514 18,247

Operating Expenses 10,226 6,244 11,546 7,437 7,895 7,259 34,137

(6,644) (2,898) (8,121) (2,365) (2,659) (2,745) (15,890)

EBITDA Add-backs:

2,630 2,631 2,547 2,513 2,492 2,184 9,736

505 339 6,006 1,054 1,382 1,295 9,737

Other Items 3,670 15 - - 104 - 104

161$ 87$ 432$ 1,202$ 1,319$ 734$ 3,687$

Operating Loss

Cost of Revenue

Gross Profit

Total Revenue


Stock-based Compensation

Adjusted EBITDA


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0

20

40

60

80

100

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Annual Capacity(MM ft2 / year)

Capacity Expansion Plan

East Providence

Line 1

Line 2

Line 3

Line 1

Expansion

Plant 2 - Line 1

Nameplate Capacity(1), Year-End Effective Capacity(2), Annual Actual Production, Annual

Historical Projected

1. Nameplate capacity represents our projected maximum sustainable annual output2. Effective capacity is the capacity at which we can operate while maintaining the quality of our products and efficiency of our operations in a given period. Actual effective capacity is also impacted

by the date within a given year on which we add the capacity.The projected nameplate and effective capacity for the years 2015 through 2018 are based on certain assumptions that the Company’s management believes are reasonable, but these assumptions could prove to be incorrect, which could result in actual capacity differing materially from the projections above.

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Key Business Highlights

1) Disruptive insulation products offering superior value and performance

2) Attractive and growing energy infrastructure end markets

3) Substantial installed base with industry-leading end users

4) Significant growth opportunities: expanded market penetration and new projects

5) 29% 5-year revenue CAGR, EBITDA positive, growing profitability

6) Protected technology platform and proprietary manufacturing capability

7) Proven, scalable business model with attractive returns

8) Experienced management team with a demonstrated track record

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Appendices

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Reconciliation

Note: The table above presents a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

Year Ended

12/31/14 12/31/13($ in thousands)

Net loss (66,324)$ (47,611)$

Interest expense 50,281 30,599

Depreciation and amortization 10,183 10,061

Stock-based compensation 8,781 4,426

Loss on disposal of assets 119 230

Gain on extinguishment of convertible notes - (8,898)

Loss on exchange of convertible notes - 5,697

Costs associated with postponed public offering - 241

Write-off of construction in progress - 3,440

Adjusted EBITDA 3,040$ (1,815)$

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Reconciliation


Three Months Ended

3/31/15 3/31/14($ in thousands)

Net loss (2,790)$ (19,049)$

Interest expense 45 16,151

Depreciation and amortization 2,184 2,631

Stock-based compensation 1,295 339

Loss on disposal of assets - 15

Adjusted EBITDA 734$ 87$

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Reconciliation


Three Months Ended ($ in thousands)

12/31/13 3/31/14 6/30/14 9/30/14 12/31/14 3/31/15

Net loss (16,950)$ (19,049)$ (42,148)$ (2,412)$ (2,715)$ (2,790)$

Interest expense 10,306 16,151 34,027 47 56 45

Depreciation and amortization 2,630 2,631 2,547 2,513 2,492 2,184

Stock-based compensation 505 339 6,006 1,054 1,382 1,295

Loss on disposal of assets 230 15 - - 104 -

Write-off of construction in progress 3,440 - - - - -

Adjusted EBITDA 161$ 87$ 432$ 1,202$ 1,319$ 734$

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Investor Presentation

June 2015

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