Valuation and Investor
Perception of Fuel Cell
Companies
March 11, 2014
Liddy Karter
www.NEESC.org
Please Note that the information contained in this presentation reflects my opinion not the opinion s of NEESC or
other organizations with which I am affiliated. All of the data included in this presentation is publicly available.
This presentation should not be copied or used by others without my written authorization.
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NEESC
• NEESC provides support for fuel cell and
hydrogen companies for technical, marketing
and financial growth www.NEESC.org
• Liddy Karter focuses on strategic planning and
financing for NEESC
 Provide information on financing sources
 Review business plans
 Make introductions
[email protected] 203 376 7958
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2
Agenda
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Public Market
Private market
IPO Transactions
Financial, tax, legislative initiatives
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Public Markets LT Decline
Nasdaq
Ballard
Fuel Cell
Plug
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3 Month Public Markets Increase
Nasdaq
Ballard
Fuel Cell
Plug
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Fuel Cell Energy – declining losses
Nasdaq
in Yellow
• Stock price not driven by earnings/losses.
• Sector driven not company driven
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Plug Power- Erratic Earnings
Nasdaq
in Yellow
• Recent contracts driving up stock price
 Fedex, Walmart
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Market Moving Factors
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•
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•
Contracts
Legislation
Technology Advances
Cost Reductions
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Sector Fundamentals
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•
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Fast, irregular sales growth
Low/no earnings
No dividends
Price to sales 4x -35x
EPS Growth 25%-136%
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Private Larger Companies
• Clear Edge- Stationary
 Purchase of UTC Power -$48M,
 Lead investor- Kohlberg Ventures
 Total capital $140M pre UTC
 2015 100% sales growth projected
 IPO Potential - $400M
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VC Backed Companies
• Bloom- Stationary
 SOFC – Value Prop
 Total capital $1.1B
»Kleiner, Apex, Goldman etc
 2013 est $400M sales $120M loss
 IPO Potential - $1.6B
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Fuel Cell OEMS in NE
Organization name
Product or Service Category
State
Fuel Cell Energy Inc.
Infinity Fuel Cell and Hydrogen Inc.
UTC Power
Avalence LLC
H2 Sonics LLC
Proton OnSite
Sustainable Innovations
Treadwell Corporation
RedOx
Axiome Advisors
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Hydrogen System OEM
Hydrogen System OEM
Hydrogen System OEM
Hydrogen System OEM
Hydrogen System OEM
Hydrogen System OEM
Fuel Cell Stack or System OEM
CT
CT
CT
CT
CT
CT
CT
CT
CT
CT
H2 Pump LLC
Pall Corporation
MicrOrganic Technologies
Delphi Automotive LLP
Signa Chemistry
Plug Power Inc.
Solid Cell
WATT Fuel Cell
Hydrogen System OEM
Hydrogen System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
NY
NY
NY
NY
NY
NY
NY
NY
Protonex Technology Corp
Nuvera Fuel Cells Inc.
Lilliputian Systems, Inc.
Ballard
Giner, Inc.
ZTEK Corp
Acumentrics Corporation
Hy9 Corp
Trenergi
Nanoptek
Angstrom Advanced
Sun Catalytix
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Hydrogen System OEM
Fuel Cell Stack or System OEM
Fuel Cell Stack or System OEM
Hydrogen System OEM
Hydrogen System OEM
MA
MA
MA
MA
MA
MA
MA
MA
MA
MA
MA
MA
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Market Size is Moving
• Stationary Fuel Cell 2013 Market $1.4B
 55% 2013 growth
• Transportation
 Large Auto OEMs entering market
 Refueling stations
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2014 Clean Tech IPOs
 Opower is filed 2/2014. Financials not
disclosed. They use social pressure to get
people to reduce usage.
 Sun Run 2014
 Bloom 2014
 31 IPO filings in 2014 up 72% from 2013
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Enough Regulatory Incentives?
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ARPA-E and SBIR
Investment Tax Credit
ITCs for Renewable Energy Investment
Advanced Energy Manufacturing Credit
Accelerated Depreciation
Feed in tariffs, RECs, renewable portfolio stds, biofuel
incentives
• Regional and state tax incentives
• Federal or state loan guarantee programs – DOE, USDA, SBA
• Over $100 BILLION Incentives available in 2013.
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Incentives Expiring 2014
• Hydrogen Fuel Infrastructure Tax Credit -30%
• Fuel Cell Motor Vehicle Tax Credit - $4000
• Hydrogen Fuel Mixture Excise Tax Credit$.50/gal
• Hydrogen Fuel Excise Tax Credit- $.50
• Improved Energy Technology Loans – 100%
guarantee
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Incentives States
• Fuel Cell Vehicles - $40k to manufacturer
• Zero Emission Vehicle (ZEV) Deployment
Support
 Connecticut, California, Maryland, Massachusetts, New York, Oregon,
Rhode Island, and Vermont
• DOE website shows incentives by state
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Summary
• Market sees economic potential
• Public sector as best customer
• Combine regional incentives and
demand
• Valuations become rational
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Thank you
Liddy Karter
Executive Director, Crossroads Venture Group
203 376 7958
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