ZBB Energy Corporation

ZBB Energy Corporation
IDEAS Investor Conference
June 3rd, 2015
Forward Looking Statements
THIS PRESENTATION INCLUDES FORWARD-LOOKING STATEMENTS THAT ARE MADE PURSUANT TO THE "SAFE
HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING
STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS, AS A RESULT OF VARIOUS FACTORS
INCLUDING THOSE RISKS AND UNCERTAINTIES DESCRIBED IN THE RISK FACTORS AND IN MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SECTIONS OF OUR MOST
RECENTLY FILED ANNUAL REPORT ON FORM 10-K AND OUR SUBSEQUENTLY FILED QUARTERLY REPORTS ON FORM
10-Q.
WE URGE YOU TO CONSIDER THOSE RISKS AND UNCERTAINTIES IN EVALUATING OUR FORWARD-LOOKING
STATEMENTS. WE CAUTION READERS NOT TO PLACE UNDUE RELIANCE UPON ANY SUCH FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE MADE.
IN THIS DOCUMENT, WE REFER TO INFORMATION REGARDING POTENTIAL MARKETS FOR PRODUCTS AND OTHER
INDUSTRY DATA. WE BELIEVE THAT ALL SUCH INFORMATION HAS BEEN OBTAINED FROM RELIABLE SOURCES THAT
ARE CUSTOMARILY RELIED UPON BY COMPANIES IN OUR INDUSTRY. HOWEVER, WE HAVE NOT INDEPENDENTLY
VERIFIED ANY SUCH INFORMATION.
This presentation copyright 2014 by ZBB Energy Corporation
2
Additional Information and Where to Find It
This communication may be deemed to be a solicitation of proxies in respect of the transactions contemplated
by the securities purchase agreement with Solar Power Inc. described above (the “Purchase Agreement”). In
connection with the proposed transaction, ZBB intends to file a proxy statement and other relevant materials
with the U.S. Securities and Exchange Commission (the “SEC”). The definite proxy statement will be sent or
given to the shareholders of the Company and will contain important information about the Purchase
Agreement, its related transactions and other related matters. SECURITY HOLDERS ARE URGED TO READ THE
PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY WHEN IT
BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The proxy statement and other
relevant materials (when they become available) and other documents filed by the Company with the SEC may
be obtained free of charge at the SEC’s website at www.sec.gov. In addition, security holders will be able to
obtain free copies of the proxy statement from the Company be contacting Investor Relations by telephone at
(262) 253-9800 or by going to the Company’s Investor Relations page on its corporate website at
www.zbbenergy.com.
Participants in the Solicitation
The Company and its directors and executive officers and other persons may be deemed to be participants in
the solicitation of proxies in respect of the proposed transaction. Information regarding the Company’s
directors and executive officers is available in its Annual Report on Form 10-K for the year ended June 30, 2014,
which was filed with the SEC on September 29, 2014, and its proxy statement for its 2014 annual meeting of
shareholders, which was filed with the SEC on October 9, 2014. Other information regarding the participants in
the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise,
will be contained in the proxy statement and other relevant materials to be filed with the SEC when they
become available.
We are in the Beginning Stages of an Enormous
Energy Supply Transition that will Last for Decades
The World is Migrating Away from a “Coal Powered Economy”
ZBB Energy Enables The Transition to Distributed Energy Generation
4
Perfect Storm In the Electric Grid
Electric grid and utilities face major upcoming challenges:
“Battery storage for
residential, commercial,
and utility-scale customers
is one of the most
anticipated developments
in the energy space”
– Rapid proliferation of intermittent distributed renewables
– Reductions in coal and nuclear base-load generation
– Aging infrastructure and concerns over security and reliability
– Significant under investment in transmission and distribution
equipment
– Consumers are facing higher demand charges, higher electricity
prices and more frequent power disruptions
‒ Peter Rive, Co-founder and CTO,
SolarCity
– Local air quality problems are severe in China
New U.S. Electric Generation Capacity, Q1 ‘14
Problems faced by the grid are solvable by combining grid
intelligence and energy storage
– Use energy storage as “shock absorber” for renewables
– Create a flexible and dependable grid by time-shifting energy during
periods of high demand or low generation
– Lower energy prices through building and grid intelligence
Natural Gas 4%
Wind
20%
Solar
Geothermal
Wind
Geothermal 1%
– Convert buildings into a smart energy network
Solar
74%
Natural Gas
Other
Source: GTM Research, FERC Energy Infrastructure Update, March 2014. Note: FERC Energy
Infrastructure Update report used for all technologies other than solar. SMI data on PV and
CSP used for solar and converted to Mwac using a 0.87 DC-to-AC derate factor for
distributed solar and a 0.77 factor for utility solar
5
ZBB is a Technology Leader Poised to Capitalize on the
Coming Energy Storage Megatrend
6
Company Overview
Snapshot
ZBB is a global leader in smart energy storage systems
Our systems enable the penetration of renewables
ZBB is focused on the Commercial / Industrial building,
utility and off-grid market segments
Our market opportunity is forecast to be over $100 B
between now and 2020
ZBB intelligent power routing technology delivers
uninterrupted electricity from multiple sources - grid,
renewables, battery
Proprietary flow battery technology with key advantages
for long discharge energy storage needed by grid
Recent Announcements
Ticker / Exchange
ZBB/ NYSE MKT
Stock Price (5/14/2015)
$0.90
Volume (3 month ave.)
450,000/day
Basic Shares Outstanding
39.1 M
Basic Market Cap
$35.2 M
Cash and Equivalents
(3/31/15)
$15.0 M
Equity value of China JV
- Meineng Energy
$12.6 M
Loans & Notes Payable
$2.1M
Employees
~60
Company Headquarters
Menomonee Falls, WI
ZBB Customers
Executed a strategic partnership with Solar Power, Inc
that includes $80-$120 M supply agreement
Achieved 3rd party validation in Beijing for Agile flow
battery, becoming the only advanced battery to
Contracted to take a commercial building “off-grid” in the
Cayman Islands
7
ZBB Energy on the Move
 January 6, 2015:
ZBB Incorporates
Power Purchase
Agreement Model.
Hawaii PPA Signed
 November 4, 2015:
ZBB Announces
GridStrong VAR
Generator for
Power Quality
Improvement
 March 12, 2015:
ZBB Announces
Agile Flow Battery
for Commercial and
Industrial Buildings
 January 22, 2015:
ZBB Ships World’s
First Flow-Battery,
Li Ion Hybrid
Storage System
 April 17, 2015: ZBB
Partners with SPI
Solar for 80120MWh of PV
Energy Storage
 March 31, 2015:
ZBB Receives China
3rd Party Validation
on Agile Flow
Battery
 May 26, 2015: ZBB
Announces
Breakthrough Matrix
Energy Management
System
 May 5, 2015: ZBB
Achieves Utility
Battery DesignBuild Milestone
 May 12, 2015: ZBB
Announces Agile
 April 22, 2015: ZBB
Hybrid – Only
Receives Contract
Hybrid Battery
for Off-Grid Power
System Designed
Station in the
for C&I applications
Cayman Islands
Product Innovation, Partnership and Market Success
Mega-Trend Market Opportunity
BIG OPPORTUNITY:
THE ENERGY STORAGE MARKET
USD$B
GWh
Top 5 Markets in 2017
(in billions $) *
Germany
$10.0
UK
$10.7
China
$20.0
US
$25.7
Japan
$20.3
*Lux Research
9
ZBB’s Energy Management System Product Lines
and Market Segments
Power Control Systems and
Power Quality Products
Utilities
Energy Storage Products
Commercial and
Industrial Buildings
Utility Storage
GridStrong
Dist. Grid Control
High-Voltage
Power Control
10
Our Business Models
Component Sales
–
–
–
–
Inverters
StatComs
Batteries
Energy
Management
System Sales
– Utility Storage and
Energy Management
Systems
– Commercial and
Industrial Storage and
Energy Management
Systems
– Service Contracts
Electricity Sales
– Power Purchase
Agreements (PPAs)
including ZBB, 3rd Party
Equipment and Services
– Initial cash intake from
sale of equipment and
services into PPA
– Ongoing revenue stream
based upon ownership %
and size of PPA
– Revenue recognition
based upon ownership %
11
Commercial and Industrial Building Market
• 5.5 million existing commercial, industrial,
AOAO buildings in the USA alone, with
more built every day1. In 2013,
– 16,600,000 Commercial and Industrial
Customers consumed ~$160 Billion in
Electricity
– 450,000 Occupied multi-tenant buildings
pay high residential rates
• Larger scale than single family home
residential market provides opportunity to
reduce cost and increase profits.
• Number and complexity of applications
enables differentiation and higher profit.
1
Source: Energy Star (US EPA; US DOE)
12
The Solar Market in the USA
New U.S. Electric Generation
Capacity, Q1 ‘14
Wind:
20%
Solar
Geothermal
Wind
Solar: 74%
Natural Gas
Other
Source: GTM Research, FERC
Where the Solar Goes
13
ZBB’s Storage is Integrated as Part of the Solar Systems in
~80% of the Market
1000kWh
Daily
60kWh
Daily
7kWh
Daily
• ZBB serves the Utility and the Commercial segments of the market,
representing ~80% of the market
• Tesla has entered the residential market with modified car battery cells
14
Two New Breakthrough Products for C&I Market
Agile Hybrid Storage and Matrix Energy Management System
ZBB Agile Flow Battery
ZBB Li Ion
• Configurable for any building, any
application requiring discharge time from
seconds to >8 hours
• Power and Energy applications in one
integrated platform
• Only commercially available solution that
covers all applications economically in the
building
• Simple, scalable, configurable, future proof
building solution
• Active prioritization of grid, renewables and
storage produced electricity based upon
most efficiency, economical result
• Real time control of all AC, DC inputs &
outputs - grid, storage, gen set,
microturbine, DC lighting, fuel cell,
flywheels, supercapacitors….
15
C&I Economics Improve by Performing More Applications
Requiring Energy Storage
Most Economic Solution is ZBB Agile Hybrid Storage Systems
Characteristic
Power Applications
• Renewable (Solar) Firming
• Building Micro-turbine
• Utility Frequency
Applications
Regulation
• Power Quality
• Back-up Power (UPS/Data)
Required
Discharge Time
Hybrid
Solution:
Energy Applications
•
•
•
•
Demand Response
“Smart Export”
Peak Shaving
Bulk Energy “Movement”
for Rate / Time Shifting
• Back-up Energy (Elevator)
<Seconds to 1 Hour
2 to 8 Hours
ZBB Li Ion
ZBB Agile Flow Battery
16
Example of One C&I Application
Hawaii Elevator Back-Up Product
• Buildings 7 floors or higher are mandated to
have 2 hours of back-up power
•
Market share goal: 30% of the
~400 buildings in 2-years
• Installed base is diesel gen set
•
Target sales = $30,000,000
• 20 year replacement requirement
•
This is only 1 application!
• Total Hawaii market is 5,000 Elevators
• Target market for next 2 year replacements is
>400 buildings
• Storage is a better alternative to a new diesel
gen set
– Resiliency
– Incorporate small Solar and get additional
value and tax credit
• ZBB has a standard product: ~$250K ASP
Installed System: 110kWh Hybrid Storage
and Power Electronics
17
Example Off-Grid Commercial Complex System Project
Cayman Technology Center – 38,000ft2 Complex
ZBB Takes Site Off-Grid with Solar, Hybrid Storage, PCS, Gen Set
Market for Off-Grid Island Energy Systems: Hundreds, if not thousands of
Sites in the Caribbean Alone – Local Rate is ~$0.40/kWh
18
The Distributed Energy Generation Future
ZBB Integrates Distributed Energy Generating Assets into the Utility
Transmission
Operator
Distribution
Operator
Load Serving
Entity
Industrial
Customer
Distributed
Resources
Commercial
Customer
Aggregated
Residential
Customers
Substation
Generation
Other
Substations
Energy Storage / Supply
Response Network
MultiDwelling
Unit
Diagram Courtesy of PG&E
ZBB Energy Management Systems Integrate with Utility T&D Operation
eg. Alcatel 7705 SAR-H Service Aggregation Router w/SNMP Interface
19
Supply and Demand Mismatch in California
Q: How do you operate the grid
with this intermittency?
Source: California Independent System Operator
20
California’s Load Vs Generation Mismatch
The more solar…..the worse it gets
Utility Energy Storage
Empower 1MWh Battery Module
•
•
•
•
•
•
•
•
•
1MWh energy storage building block
composed of 4 x 250kWh modules.
2 to 8 hour discharge times
Standard high cube shipping container
for easy deployment
250kW-500kW of power
DC-bus voltage of 725-820 VDC
Integrated battery management
system with power electronics.
-30 to +45C operation without
external HVAC.
Secure integration into utility
communication network.
Can be seamlessly integrated with Li
Ion modules for both long and short
discharge time applications.
1MWh in 40ft High Cube Container
2x250kWh Modules
Grid Power Quality Improvement
GridStrong Distribution Grid Control
•
Solves a wide variety of power quality and
voltage stability issues
 Key component for Conservation Voltage
Reduction (CVR) – reduce the voltage while
maintaining power quality
 Enables higher density of solar energy supply
without degrading power quality.
 Improves power quality in overloaded or edge of
grid areas.
 Allows increase of loads in already heavily
loaded areas, such as plug-in hybrid vehicles.
•
•
•
A VAR generator capable of both inductive and
capacitive correction
Adjustable response time, dead band and
voltage control bands
Pole mounted, with local indication and remote
monitoring and control
23
Company Description
Global Footprint
 Founded in USA, 2006
 Listed on OTCQB; >$1B market capitalization
 >$1.5B line of credit
 >400 employees globally
 Presence in US, UK/Europe, China, Japan, and
Australia markets
 Proven solar project development track record
 Leader in solar technology (smart solar)
Recent Highlights
Introducing “Solarbao” & “Solartao”
 Majority acquisitions of Convertergy
Technology and Solar Juice
 Innovative online platforms for solar powerbased financing and e-commerce
 Launch of solarbao.com / solartao.com
 Addresses DG financing bottleneck in China
 Strategic partnership with ZBB
 >15 investment products sold since January
2015 launch
 Acquisitions of in operation solar assets in
Italy and California
 ~$330M(1) total capital raised
 solartao.com targets online B2B solar market
(1) Announced financings include pending options.
24
Proposed SPI Strategic Alliance
Initial Supply Agreement for 40MW (80-120MWh)
Supply Agreement Milestones
MW Installed
Est. $80-$120 million
15
10
10
YEAR TWO
YEAR THREE
5
YEAR ONE
YEAR FOUR
Mega Watts Installed
Additional Proposed Deal Terms:
•
•
Investment valued at $33.4 million (closing, expected July 2015), consisting of a combination
of Common Shares and Convertible Preferred Stock (convertible upon fulfilling supply
agreement milestones).
Warrants to purchase additional 50M shares of ZBB’s common stock for $36.7M after
fulfillment of the Supply Agreement
25
China Opportunity and Meineng Energy
Strong Position in the World’s Largest Solar Market
Renewable
Energy
Integration
Distributed
Generation and
Micro-Grid
Transmission
and
Distribution
Ancillary
Services
Electric Vehicle
Energy Storage
44.2 GW
13.5 GW
70.0 GW
1.2 GW
8.1 GW
2014 – 2020 China Storage
Installation Forecast
Source: CNESA
• China will install 17.8GW of solar in 2015, up 70% vs. 2014. Note: This would power 2.5%
of US households!
• SPI-ZBB relationship will significantly enhance sales in China, the largest solar market in
the world.
• ZBB owns ~30% equity of Meineng Energy, located in Wuhu, China
• Meineng is the outsource partner for ZBB’s manufacturing, supply chain, R&D and test
for all ZBB’s core products, with 100MWh/yr. battery capacity.
• Closed financing round in 2H 2014, post financing valuation of ~$45M.
• Recent 3rd party validation of the Agile Flow battery at the leading electric power product
test center in China - Agile is the only non-Li Ion, non-Pb Acid battery technology to
achieve this validation. Critical to grid connection.
26
Lotte Chemical
– Lotte is an $18 Billion division of the
Lotte Group ($50 Billion in assets)
– $3 million design project for new
500kWh utility battery
– Exclusive paid-up license for
manufacturing & sales in Korea
– Non-exclusive royalty bearing
license to sell for balance of globeexcept China and US
– Outsourced manufacturer of cell
stacks for ZBB
27
ZBB Global Operations
• 70,000 ft. sq. R&D and Pilot Production in
Milwaukee, USA
• 100 MWh Production Capacity in Wuhu,
Anhui, China
• Cell Stack Manufacturing in Milwaukee, USA
and Daejeon, Korea (Lotte Chemical)
WuHu, China Final Test
Pilot Production and Prototype Assembly
and Test - Milwaukee, WI
28
Financial Summary
Balance Sheet As of March 31, 2015
Income Statement LTM as of March 31, 2015
$ in 000’s
$ in 000’s
Cash & Cash Equivalents
$15,045
Revenue
Current Assets
$17,181
Gross Profit
PP&E
Total Assets
$2,699
$420
$4,316
$24,685
Shares Outstanding
Current Liabilities
$3,881
Bank Loans & Notes Payable
$2,134
Common Stock
Total Liabilities
$5,657
Stock Options Outstanding
Stockholders’ Equity
$19,029
As of March 31, 2015
39,101,209
(Weighted Avg Strike Price - $2.86)
1,664,778
RSUs Outstanding
2,067,494
Warrants
(Weighted Avg Strike Price - $1.88)
2,933,752
Series B Convertible Preferred Shares
3,143,380
Fully Diluted Shares
48,910,613
29
Investment Summary
Massive Need For
Energy Storage
‒ Aging infrastructure and proliferation of renewables wreaking havoc
on the grid and creating major pain points for consumers and utilities
‒ Greater than $100 Billion global market to 2020
Smart Technology
Advantage
‒ Intelligent “auto synch” technology delivers uninterrupted
electricity from multiple sources (grid, renewables, battery)
‒ Enables the use of hybrid storage-flow + Li ion
Proven
Battery Solutions
‒ First to flow battery market with substantial lead
‒ Hybrid flow + Li ion for buildings covers all applications
‒ Cost, safety, durability, and discharge time advantages
Key Strategic
Partners
Experienced
Leadership Team
‒ Strategic partnerships that require strong participation.
‒ Creation of strong global channels, supply chain and financial capability
‒ Positions the company for rapid, capital-efficient global growth
‒ Management team with extensive depth in sales and marketing,
technology, engineering, and business development
‒ Board of Directors stacked with high caliber talent
30
Eric Apfelbach
Chief Executive Officer
eapfelbach@zbbenergy.com
(608) 576-7549: cell
Thank You
Back-up Material
Management Team and Board
Management Team
Board of Directors
Eric Apfelbach, CHIEF EXECUTIVE OFFICER, DIRECTOR
Paul Koeppe, CHAIRMAN OF THE BOARD
• Joined ZBB in 2010
• Involved in multiple tech startups including: Virent & Alfalight
• Previously at Applied Materials and Planar Systems, Inc.
•
•
•
•
Brad Hansen, PRESIDENT AND COO, DIRECTOR
• Joined ZBB in 2014
• Served as CEO of Anhui Meineng Energy
• Previously worked for Applied Materials, Inc. and Boeing
Kevin Dennis, VP ENGINEERING
• Former Director of ABB Advanced power electronics business unit
• 30 years of engineering & management experience in utility,
power electronics & power control systems
Dan Nordloh, EVP OF GLOBAL BUSINESS DEVELOPMENT
• Joined ZBB in 2010 and is responsible for ZBB’s global growth
strategy
• Serves on the BoD of Anhui Meineng
• Experience in global software, hardware and polymer tech
Dilek Wagner, VP FINANCE
• Joined ZBB in 2011 as a Financial Reporting Analyst
• Promoted to Director of Financial Reporting in January 2013
• Previously a tax consultant and auditor for Ernst & Young and
Deloitte
Tony Siebert, VP PRODUCT MANAGEMENT
• Over 20 years of experience in sales and engineering in the utility
and industrial industries
• Previously held leadership roles at American Semiconductor and
ABB Ltd.
Founder and CEO of Superconductivity Inc.
Served as a member on the Board for Distributed Energy Systems
Previously Director at Best Power and Northern Power
Director of inContact (NASDAQ: SAAS)
Richard A. Abdoo, DIRECTOR
• Former Chairman and CEO of Wisconsin Energy Corporation
• Director of AK Steel and NiSource
• President of the environmental and energy consulting firm R.A.
Abdoo & Co.
Jim Ozanne, DIRECTOR
• Former GE Capital Executive
• Director of United Rentals
• Has served in executive positions in the financial services industry
since 1972
Manfred Birnbaum, DIRECTOR
•
•
•
•
Former Executive of English Electric Corp
Career at Westinghouse Electric Corp.;
Director STW Resources Corp.
Previously an independent management consultant in the
energy and power industries
Theodore Stern, DIRECTOR
• Board Chairman of inContact (NASDAQ:SAAS)
• Former Senior Executive and Board Member of Westinghouse and
Vice Chairman of Superconductivity
33
ZBB Matrix IP and Know-How are Barriers to Entry
Company
A
Function or Application
Company Company
B
C
Active Energy Synchronization for any or all DC and AC Inputs
and Outputs without System Controller / Complex Algorithms
Can manage every power and energy storage application
under simultaneous operation
Scalable and “Future Proof” for 20 Year service life
✔
✗
✗
✗
✔
✗
✗
✗
✔
✗
✗
✗
Demand Response
✔
✔
✔
✔
Frequency Regulation
✔
✔
✗
✔
“Rate Shifting”
✔
✔
✗
✔
“Peak Shaving”
✔
✔
✗
✔
Demand Charge “Clipping”
✔
✔
✔
✔
Renewable Firming
✔
✔
✗
✔
2015
✗
✗
✗
Smart Export between Building and Utility T&D
✔
✗
✗
✗
Microgrid Operation
✔
✔
✗
✔
Max. Power Point Tracking
✔
✗
✗
✔
2015
✗
✗
✗
Power Factor Correction and AC Bus Voltage Regulation
✔
✔
✗
✔
Islanding
✔
✔
✗
✔
Full Data Logging and Forecasting of Generation and Storage
PV Panel Optimizer Integration
34
Who is SPI?

A global leader in solar PV power solutions

Focused enabler of downstream project development focusing on 4 major PV
markets

Operator of innovative, online energy e-commerce and investment platform
www.solarbao.com, and online B2B marketplace www.solartao.com

Based in Shanghai with global operations in the US, UK/Europe, Asia and
Australia
Overview
Company Description
Global Footprint
 Founded in USA, 2006
 Listed on OTCQB; >$1B market capitalization
 >400 employees globally
 Presence in US, UK/Europe, China, Japan, and
Australia markets
 Proven project development track record
 Leader in PV technology (smart solar)
Recent Highlights
 Majority acquisitions of Convertergy Technology
and Solar Juice
 Launch of solarbao.com / solartao.com
 Strategic partnership with ZBB
 Acquisitions of in operation PV assets in Italy
and California
 ~$330M(1) total capital raised
(1) Announced financings include pending options.
Introducing “Solarbao” & “Solartao”
 Innovative online platforms for solar powerbased financing and e-commerce
 Addresses DG financing bottleneck in China
 >15 investment products sold since January
2015 launch
 solartao.com targets online B2B PV market
International Management Team
A seasoned team with solar, Internet and financing expertise
Management
Position
Background
Xiaofeng Peng
Chairman
Min Xiahou
CEO
Amy Liu
CFO
HK Cheong
COO
Stephen Kircher
CSO
Mark Ikauniks
Head of Corp. Dev., M&A & IR
Xiaofeng Lin
CMO
Yue Dong
CTO
Disciplined M&A Program
 May 8: Agreement to Acquire
Controlling Interest in
ConvertergyTechnology
 Oct 29: Framework
Agreement to Acquire
Shanghai All-Zip Roofing
System Group
 Dec 5: Announced
Acquisition of 9.9 MW
New Jersey Project
 Oct 23: Agreements
With GD Solar to
Acquire and Develop
Multiple PV Projects
 Oct 3: Completed
Acquisition of
Sinsin Renewable
 Jan 16: Agreement to Acquire 4.3
MW of Solar PV Projects in Italy
 Nov 17: Agreements with TBEA
Xinjiang Sunoasis to Develop
and Acquire Multiple Solar
Projects in China
 Nov 12: Framework
Agreement to Acquire
Guodian Nailuen
Tumed Left Banner PV
Electricity
 Oct 24: Framework Agreement with
ZhongNeng GuoDian to Acquire One
of the Largest PV Project
Development Companies in China
 Dec 12: MoU on HK$1.2bn
Investment in Guocang
Group
 Nov 18: Announced
Definitive Agreement to
Acquire and Develop Solar
Project in Japan
 Jan 8: Completed
Acquisition of Gonghe
County Xinte Photovoltaic
 Apr 15: Acquired 30 MW of Solar
PV Project Development Rights
in Japan
 Apr 2: Acquisition of
Aerojet Solar Projects
 Mar 31: Agreement to
Acquire Majority
Interest in Solar Juice
 Apr 17: Strategic
Partnership with
Leading Developer
of Energy Storage
Systems ZBB
 Apr 14: Acquired 50 MW of
Solar PV Development
Rights in the UK
Strategic Partnership
Strategy
•
Create a solar + storage alliance that has the products, channels and financial
strength to be a leader in the top growth markets of the world.
Key Partnership Terms
•
SPI signs an initial supply agreement for 40 MW’s of storage; estimated to be
worth between $80 million and $120 million.
•
SPI invests $5.3 million to buy 8 million shares of common stock at
$0.6678/share and $28 million for 28,048 shares of convertible preferred
stock; ZBB receives $33.4 million at closing
•
Preferred stock can be converted to common in four tranches with execution
of Supply Agreement.
•
SPI receives a warrant for 50 million shares at a price of $0.7346/share that
can be exercised when the 40 MW supply contract is complete; ZBB receives
$36.7 million in proceeds on exercise
•
SPI has one initial Board seat and will earn more with higher ownership
•
This transaction requires shareholder approval. A definitive proxy has been
filed and a special meeting will be held on June 29th at ZBB HQ.
ZBB China JV - Meineng Energy
•
Located in WuHu, China
•
30 employees
•
Advanced test center with (4) 125kW and
(5) 25kW Inverters, Yokogawa, Agilent and
other test equipment and metrology
•
3000m2 facility - 100MWh per year factory
capacity
•
Complete supply chain management
capability – All ZBB Battery and new ZBB
Power Electronics products currently
sourced in China by Meineng.
•
Sales and Service capability
•
ZBB ownership of ~30% share