ZBB Energy Corporation Presentation November 2008 Compressed
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Transcript of ZBB Energy Corporation Presentation November 2008 Compressed
Example Presentation April 2008
Investor Presentation
November 2008
ZBB ENERGY CORPORATION
This presentation may contain “forward looking statements” which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In
some cases you can identify those so-called forward looking statements by words such
as may, will, should, expects, plans, targets, anticipates, believes, estimates, predicts,
potential, or continue, or the negative of those words and other comparable words.
These forward looking statements are subject to risks and uncertainties, product tests,
commercialization risks, availability of financing, and results of financing efforts, that
could cause actual results to differ materially from historical results or those
anticipated.
Forward Looking Statement
anticipated.
Further information regarding these and other risks is detailed from time to time in the
Company’s filings with the Securities and Exchange Commission.
We assume no obligation to update or alter our forward looking statements in this
presentation or in any periodic report, whether as a result of new information, future
events, or otherwise, except as otherwise required by applicable federal securities
laws.
ZBB ENERGY CORPORATION ZBBZBB
ZBB Snapshot
Our energy storage solutions address issues related to
grid stability and renewable energy intermittency.
o Distributed storage of electrical energy during off peak
periods.
� Re-supply on high demand providing grid reliability and
economic benefits.
To become the leader in large capacity energy storage solutions
ZBB ENERGY CORPORATION ZBBZBB
economic benefits.
o Smoothing / shifting intermittent renewable energy
generation.
� Controlled generation, grid stability and optimal use
o Enabling energy independence and RAPS
o Green back up power and power quality.
ZBB ‘s technology fits hand-in-hand with alternative
energy growth and deployment.
ZBB Investment Considerations
Superior Technology 1ZBB’s storage solution products offers efficient and cost-effective technology that addresses key constraint and consistency issues
Growing Sales PipelineGrowing Sales Pipeline 22Ramping sales and marketing effort resulting in multitude of potential projects
Alternative Energy FocusAlternative Energy Focus 33Products address alternative energy intermittency and
ZBB ENERGY CORPORATION ZBBZBB
Alternative Energy FocusAlternative Energy Focus 33Products address alternative energy intermittency and efficiency issues.
Intellectual PropertyIntellectual Property 44Company has 20+ patents that protect all aspects of the product and technology
Solid Financial PositionSolid Financial Position 55With approximately $8.0 million in cash and no debt, ZBB’s balance sheet is funded for growth
Alternative Energy Growth Projections
Increased attention and investment dollars will provide growth to alternative sources of
power
925
2365
7.3
6.4
24%
34%
Renewables*
Nuclear
22%
Drivers of Growth
•GHG Emissions
•MRET’s
•Energy Independence
ZBB ENERGY CORPORATION ZBBZBB
383 313
14002095
1179
1352367
925
1024
2006 2030
1.0 0.7
7.3
11.6
3.5
3.92.6
3.3
2006 2030
Capacity(Gigawatts)
Output(Gigawatt-Hours)
*Includes hydroelectric, solar, wind, geothermal, biomass
24%
Natural Gas
Coal
Oil
19%•Energy Security
•Archaic T&D Infrastructure
Factors to consider
•Oil & gas price volatility
•Social Awareness
•Utilities - Tax credits
Production versus Consumption
Significant “loss” of energy supports the requirement for efficiency through energy
storage capabilities.
0.003
0.004
pe
r ye
ar
Total Production Versus Consumption
of Alternative Energy Resources
ZBB ENERGY CORPORATION ZBBZBB
Energy from Utility0
0.001
0.002
2006 2010 2015 2020 2025 2030
Hydropower Biomass Other Renewable Energy Consumption
kW
h p
er
yea
r
Source: Energy Information Administration / Annual Energy Outlook 2008
Product Overview
ZESS (“Zinc Energy Storage System ”) – a large capacity regenerative fuel cell storage, plug and
play product
� Modular systems of 50kWh or 500kWh built
from 50kWh modules
� Flow-based system with electrolyte stored
in external tanks
� Deep discharge
ZBB ENERGY CORPORATION ZBBZBB
� Deep discharge
� 20 + years product life
� Easily transportable
� Operates quietly at ambient temperature
� Environmentally friendly
� Winner of the Frost & Sullivan Large
Capacity Electricity Storage Innovation
Award
Standard Module ZESS 50
ZESS 500
Storage Technology Comparisons
ZESS technology offers multi-hour energy storage with a clean, deep-discharge, energy
neutral, compartmentalized system
• Improved energy density
• Deep discharge
• Superior cycle life
• Wider operating temperature range
Zinc-Bromide Regenerative fuel cell battery using an electrolyte system. During charge,
metallic zinc is plated from the electrolyte solution onto the negative electrode
surfaces in the cell stacks. During discharge the metallic zinc dissolves in the
electrolyte and is able to be plated again. Capable of full discharge (100% of
stored energy) without damage.
Sodium Sulfur (NaS) Consists of molten liquid sulphur at the positive electrode and molten liquid
sodium at the negative electrode, separated by a solid beta alumina ceramic
electrolyte. Kept at high temperatures above 300o C to allow the process to
occur. It is used for power quality and peak shaving applications. It has also
demonstrated more than 20 MW, with stored energy suitable for eight hours of
daily peak shaving with 89% efficiency.
ZBB ENERGY CORPORATION ZBBZBB
• Wider operating temperature range
• Modularity
• Low Maintenance
• Reliability
• Cost
daily peak shaving with 89% efficiency.
Vanadium Redox (VRB) Flow battery that stores energy by employing vanadium redox couples and is
stored in sulphuric acid solutions. Storage of up to 500 kW for 10 hours, or 5
MWh. Net efficiency is about 70%, and is heavy and large-scaled. It has been
installed by Sumitomo Electric in Japan and by Vantek in South Africa.
Pumped Hydro Storage Widely used but characterized by long construction times and high capital
expenditures. Used for water reservoirs. Water is pumped from a lower
reservoir to an upper reservoir during off peak times, and then reversed to
generate electricity.
CAES A peaking gas turbine power plant using compressed air stored in underground
caverns inside salt rocks.
Lead Acid Suitability for energy management is very limited in applications that require
deep discharge, long life cycle and longer term energy storage. The base
components (lead and sulfuric acid) are neither desirable to handle and recycle
or to have installed in a facility without more extensive infrastructure and
precautions.
Manufacturing Capabilities
� Increased production capacity:
� 8MWh 12/2007
� 30MWh 12/2008
� 48MWh 12/2009
� 72MWh 12/2010
Milwaukee, WI
Headquarters and
manufacturing
ZBB has a proven, cost-effective platform for the manufacturing of the ZESS units
ZBB ENERGY CORPORATION ZBBZBB
� Company owned 75,000sq ft headquarters
and manufacturing facility
� Manufacturing capacity currently
expanding to 50 x ZESS 50 modules per
month
� 32 full time employees in corporate and
manufacturing operations
� 7 full-time engineers located in Perth R&D
operations
manufacturing
facilities
Perth, Australia
Research &
Development
Multiple Market Applications
Electric Utilities Renewable Energy Industrial
ZBB ENERGY CORPORATION ZBBZBB
� Implement peak shaving
� Manage cost efficiency
� Reduce grid vulnerability
� Reduce capital infrastructure costs
Source: BCC Research
� Store and re-supply generated power during high-demand periods
� Smooth power delivery from the generator to the grid
Source: Electricity Storage Association Source: Electricity Storage Association
� Implement smart metering to use grid-power when cost efficient to do so
� Reduce CO2 emission
Source: Electricity Storage Association
Current and Potential Projects
Ramping sales and marketing efforts resulting in multitude of potential projects
Synergy Power Corporation
ZBB ENERGY CORPORATION ZBBZBB
Zest Energy
Electric Utilities
� North America – 32.8MWh
� Europe – 2.05MWh
� Australia – 1 MWh
� Africa – Nil
35.85MWh
Renewable Energy
� North America – 94.55MWh
� Europe - .5MWh
� Australia – 2.0MWh
� Africa – 18.6MWh
115.65MWh
Commercial / Industrial
� North America – 28.6MWh
� Europe – Nil
� Australia – Nil
� Africa - Nil
28.6MWh
ZBB is a partner with Envision Solar as part of a renewable energy initiative by Envision
Solar, to provide a reliable source of electricity for remote locations with a complete,
modularized solution
∙ 32 kW Photovoltaic System
∙ ZESS 50 storage system
∙ Water pump and purification system
Client Case Study: Solar Project - LifeVillageTM
ZBB ENERGY CORPORATION ZBBZBB
∙ Water pump and purification system
∙ Six modular buildings totaling 3,000 square
feet (279 square meters) of sheltered floor
area which can be configured to meet a variety
of needs
ZBB and Eaton Corporation collaborate for advances in product, sales and marketing,
services and facilities .
� Renewable energy and product development
� WEIF Grant (co-share $229k grant from the State of Wisconsin to develop power
conversion and energy storage system that will be compatible with both grid and
solar power)
� ZESS 50 (3)
� System design and deployment
� Sales and marketing with new and existing lines
Client Case Study: Eaton Corporation
ZBB ENERGY CORPORATION ZBBZBB
� Sales and marketing with new and existing lines
� Solar and wind energy market
� Commercial and industrial
� Utility
� Eaton EESS
� Studies through turn-key
� Energy Storage solutions
� Facilities
� Eaton Corporation – Nationwide offices
� ZBB Energy – Wisconsin only
Company Milestones
After start up
period, acquired
Johnson
Controls zinc
bromine
technology.
Completed all
additional R&D
and beta
testing.
Over 20 patents held and patent applications filed More than $60 million invested to date.
Contract with
FutureHouse
USA to provide
ZESS 50
Distribution
Agreement
with New Age
Energy, Inc &
ZEST Energy
Pty, Ltd
Hosts Energy
Forum with
Governor
Richardson &
Governor Doyle
to discuss
alternative
energy solutions
ZBB ENERGY CORPORATION ZBBZBB
1994 1998 2004 2007 2008
Formed ZBB
Energy and
moved
Headquarters to
U.S.
Raised $20
million via
IPO in June
2007.
Provides Energy
Storage for
Solar Power
Project with
Envision Solar
Co-Share State of
Wisconsin Clean
Energy Fund
Grant with Eaton
Corporation
Energy storage today represents only a fraction of the aggregate valuations of solar and wind public companies. Market has not connected the interplay of storage and alternative energy, providing potential for significant upside.
Energy Storage Valuation vs. Solar and Wind
$27.0 bENERGY
STORAGE
ZBB, VLNC,
AXPW.OB, ALTI,
BCON, HEV, XIDE,
HPJ, ENS, ABAT,
CBAK, CHP, ULBI,
Aggregate Market Capitalization
ZBB ENERGY CORPORATION ZBBZBB
$2.8
$7.0
Energy
Storage
Wind Solar
b
b
CBAK, CHP, ULBI,
MXWL
WIND RPW, BWEN, CWP,
BBW, WNEA, GES,
HSN, NDX
EXCLUDES: GE, SIE,
VWS
SOLAR SPWRA, ESLR, ENER,
FSLR, STP, WFR,
JASO, LDK, CSIQ
Valuation vs. Peer Group
ZBB Energy
Trading Statistics of Comparable Companies
(In $ millions, except per share data) Stock Revenue Enterprise Value / Price /
Price 52 Week % of 52 Market Enterprise Growth Book Value
Company (a) Ticker 10/15/08 High Low Week High Cap (b) Value (c) Rate 2Yr LTM 2008E 2009E Q2 CY08
VRB Power Systems Inc. VRB 0.03$ 0.34$ 0.03$ 8.8% 4.9$ 0.9$ 128.1% 2.3x 1.2x 0.0x 0.6x
Axion Power International Inc. AXPW 1.05$ 2.74 1.01 38.3% 27.7 27.6 88.9% 43.9x NA NA 1.6x
Cougar Energy Limited CXY 0.08$ 0.26 0.04 31.2% 42.0 32.9 53.6% 215.0x NA NA 2.5x
Plug Power Inc. PLUG 0.93$ 4.75 0.64 19.6% 82.0 (45.9) 25.0% NM NM -2.1x 0.6x
Capstone Turbine Corp. CPST 1.25$ 4.42 0.94 28.3% 190.1 157.5 11.2% 4.7x NA NA 3.8x
Advanced Battery Technologies Inc.ABAT 2.50$ 7.65 2.40 32.7% 131.4 110.4 112.0% 2.7x NA NA 2.6x
SatCon Technology Corp. SATC 1.72$ 3.51 1.15 49.0% 87.7 97.7 33.6% 1.4x 1.5x 1.0x 9.4x
Ballard Power Systems Inc. BLDP 2.43$ 5.94 1.94 40.9% 246.0 198.8 22.2% 3.0x 3.0x 2.3x 2.3x
EnerSys ENS 12.62$ 37.71 11.45 33.5% 626.6 1,029.2 27.9% 0.5x 0.5x 0.4x 2.1x
Energy Conversion Devices, Inc. ENER 37.78$ 83.33 20.47 45.3% 1,725.3 1,564.5 58.1% 6.1x 4.4x 2.6x 2.4x
Hong Kong Highpower Technology, Inc.HPJ 3.03$ 8.35 1.68 36.3% 41.1 54.9 0.0% 0.7x NA NA 3.0x
Exide Technologies XIDE 4.67$ 19.66 4.00 23.8% 351.7 951.5 17.4% 0.2x 0.2x 0.3x 1.0x
Revenues
ZBB ENERGY CORPORATION ZBBZBB
ZBB Energy Corporation ZBB 1.88$ 4.54 1.35 41.4% 19.8 13.4 53.9% 10.4x NA NA 1.75x
Discount to Mean 5.2% 203.1% 51%
Discount to Adjusted Mean 5.2% -12.0% 51.3%
Mean 33.6% 48.2% 31.7x 15.1x 1.2x 2.7x
Median 34.9% 30.7% 2.7x 1.3x 0.6x 2.3x
Adjusted Mean (d) 33.6% 48.2% 9.2x 1.8x 0.7x 2.65x
High 49.0% 128.1% 44.0x 4.4x 5.7x 9.4x
Low 8.8% 0.0% 0.2x 0.2x -2.1x 0.6x
Source: Company filings and Capital IQ.
Note: Forecasted valuation ratios are based on calendar year figures.
NA: Not Available; NM: Not Meaningful.
(a) Data represent consolidated financial information and exclude non-recurring charges.
(b) Diluted equity value using the treasury stock method based on options outstanding.
(c) Represents Equity Value plus Total Debt, Total Preferred and Minority Interest less Cash and Investments in Unconsolidated Affiliates.
(d) Adjusted Mean excludes data for LTM EV/REV for CXY, ENS, HPJ and XIDE due to outlying multiples
Positioning during Economic Downturn
• Extension of the alternative energy tax credits will stimulate many of our
markets, including major utilities;
• Situational analysis of all aspects of business processes;
Balanced approach to be both fiscally conservative and
opportunistic during this time of economic uncertainty.
ZBB ENERGY CORPORATION ZBBZBB
• Zero-based budget processes have been implemented;
• Marketing budget is mostly commissioned-upside
• Review of staff and salaries undertaken in past months
• Constant bank review where cash is managed
Strong Management Team
Robert ParryChief Executive Officer
• 25 years experience in large capacity storage industry• Held management positions with ZBB since its founding in 1982• International experience in corporate management, finance, technology and
acquisitions• CPA, Australia
Steven SeekerChief Operating Officer
Scott Scampini
• VP, International Sales & Operations, of Cooper Power Systems responsible for four international plants and a network of sales representatives and employees in over 75 countries for over 31 years
• Award winner from 2006 Astin-Polk International Standards Medal
• Price Waterhouse and BDO Siedman partners• 13 years CFO and Executive Vice President of MGS Manufacturing Group•
ZBB ENERGY CORPORATION ZBBZBB
Peter Lex, Senior Chemical Engineer
Michael Hughes, Senior Electrical Engineer
Bjorn Jonshagen, Senior R&D Engineer
Note: 40+ employees in USA and Australia
Scott ScampiniChief Financial Officer
Kevin DennisVP Marketing & Sales
• 13 years CFO and Executive Vice President of MGS Manufacturing Group• CPA
• Senior member of management team with ABB, a multi-billion dollar company with worldwide operations
• Extensive marketing, sales and engineering expertise in utility and renewable energy markets worldwide
Board of Directors
Richard PayneDirector
• 26 years experience in corporate and commercial law• Director Agri Energy Ltd• Director Broome International Airport group of companies
William MundellChairman & Director
• Energy Advisor to Governor of California• Chairman of Intekea• Former - Chairman and CEO of Vidyah Corp and former Chairman of Trade, Inc • Former CEO of WEFA• Honorary professor at Tsinghau University in China and graduate of Carlton University in Canada and
Columbia University (MBA in Finance and Masters in International Economics and Public Finance)
Manfred BrinbaumDirector
• Former Executive of English Electric Corp. (wholly owned sub of GE of England)• 26 year Senior Officer of Westinghouse Electric Corp.• Management Consultant
ZBB ENERGY CORPORATION ZBBZBB
Director • Director Broome International Airport group of companies
Robert ParryChief Executive Officer
• 25 years experience in large capacity storage industry• Held management positions with ZBB since its founding in 1982• International experience in corporate management, finance, technology and acquisitions• CPA, Australia
Marc MarottaSpecial Counsel to Board
of Directors
• Partner Foley & Lardner LLP• Former Secretary of the Dept of Admin - State of Wisconsin. Boards including; State of Wisconsin
Investment Board, the Board of University Hospitals and Clinics and the Wisconsin Center District Board.
• Graduate of Harvard Law School and Marquette University
Financial Data
AMEX: ZBB Public Float 6,927,864 66.0%
Stock Price: $3.85 Institutions1 3,192,064 30.3%
Market Cap: $40.5 Million Insiders 392,355 3.7%
Common Shares Outstanding 10,512,283 100%
Summary of Capitalization
ZBB ENERGY CORPORATION ZBBZBB
Notes:1 Represents GLG Partners ownership2Debt represents mortgage on newly acquired Milwaukee facility and equipment3 R&D investment to date approximately $60mm
Fiscal Year End June 30 Revenues $1.3
Total Cash $8.5 Total Debt2 $2.05
Total Assets3 $15.5 Shareholders Equity $12.02
Select Financial Data at June 30, 2008(in millions)
ZBB - The Energy Storage Leader
“ZBB is a transition stage manufacturer of zinc bromide flow batteries and the
clear leader in the “hours of discharge time” product class.”-John Peterson, Seeking Alpha, Alternative Energy Storage and Blood in the Streets, dated October 13, 2008
“ZBB is a transition stage manufacturer of zinc bromide flow batteries and the
clear leader in the “hours of discharge time” product class.”-John Peterson, Seeking Alpha, Alternative Energy Storage and Blood in the Streets, dated October 13, 2008
"ZBB Energy Corporation [is] a leader in developing and producing technology that
increases energy efficiency, minimizes the impact on the environment and
maximizes the use of renewable energy.“
-Wisconsin Gov. Jim Doyle, Visit to ZBB Energy Corporation manufacturing facilities, dated October 3, 2008
"ZBB Energy Corporation [is] a leader in developing and producing technology that
increases energy efficiency, minimizes the impact on the environment and
maximizes the use of renewable energy.“
-Wisconsin Gov. Jim Doyle, Visit to ZBB Energy Corporation manufacturing facilities, dated October 3, 2008
ZBB ENERGY CORPORATION ZBBZBB
-Wisconsin Gov. Jim Doyle, Visit to ZBB Energy Corporation manufacturing facilities, dated October 3, 2008
"Grid-scale storage is here now”
-Dr Ed Cazalet of MegaWatt Storage Farms, Electricity Storage Association's Annual Meeting in California, 2008
"No"No mattermatter whatwhat kindskinds ofof alternativealternative renewablerenewable energyenergy sourcessources areare developed,developed, theythey
cannotcannot bebe fullyfully utilizedutilized ifif there'sthere's nono wayway toto storestore thethe energyenergy theythey generategenerate forfor useuse
duringduring peakpeak--demanddemand hourshours.. ZBB'sZBB's electricalelectrical fuelfuel cellcell isis thethe answeranswer..““
-Michael Betsch, New Age Energy's CEO, August 2008
-Wisconsin Gov. Jim Doyle, Visit to ZBB Energy Corporation manufacturing facilities, dated October 3, 2008
"Grid-scale storage is here now”
-Dr Ed Cazalet of MegaWatt Storage Farms, Electricity Storage Association's Annual Meeting in California, 2008
"No"No mattermatter whatwhat kindskinds ofof alternativealternative renewablerenewable energyenergy sourcessources areare developed,developed, theythey
cannotcannot bebe fullyfully utilizedutilized ifif there'sthere's nono wayway toto storestore thethe energyenergy theythey generategenerate forfor useuse
duringduring peakpeak--demanddemand hourshours.. ZBB'sZBB's electricalelectrical fuelfuel cellcell isis thethe answeranswer..““
-Michael Betsch, New Age Energy's CEO, August 2008
Example Presentation April 2008
Thank You