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INVESTOR PRESENTATION
Polar Power is pioneering technology that can radically
change the production, consumption, and environmental
impact of power generation.
April 2024
NASDAQ: POLA
Safe Harbor
The following discussion, in addition to the other information contained in this presentation, should be considered carefully in evaluating our prospects. This presentation (including without limitation the following factors that may affect operating results) contains forward-looking statements regarding us and our business, financial condition, results
of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this presentation. Additionally, statements concerning future matters such as revenue projections, projected profitability, growth strategies, and other statements regarding matters that are not historical are forward-looking
statements.
Forward-looking statements in this presentation reflect the good faith judgment of our management and the statements are based on facts and factors as we currently know them.
Forward-looking statements are subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in the forward- looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, those discussed in this presentation, and other risks, including, but not limited to, those described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings and submissions with
the SEC. Readers are urged not to place undue reliance on these forward-looking statements which speak only as of the date of this presentation. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this presentation.
This presentation shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities of the Company nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This presentation contains market data and industry statistics and forecasts that are based on independent industry publications and other publicly-available information. Although we believe these sources are reliable, we do not guarantee the accuracy or completeness of this information and we have not independently verified this information. Although we are not aware of any misstatements regarding the market and industry data presented in this presentation, these estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed in the section entitled "Risk Factors" and under similar headings in the other documents that are incorporated herein by reference. Accordingly, investors should not place undue reliance on this information.
© 2023 Polar Power, Inc. All Rights Reserved.
NASDAQ: POLA |
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Company Overview
Polar Power is pioneering technological changes that radically change the production, consumption, and environmental impact of power generation.
- Leading provider of DC advanced power and cooling systems, pioneering innovations across diverse industrial applications
- Our product portfolio is known for innovation, durability, and efficiency
- Tier-1telecom companies have been our primary clients and use our DC generators primarily as backup power for cell sites, but our products can also address military, renewable energy, marine, automotive, residential, commercial, oil field, and mining applications
- Our systems can be configured to operate on any energy source including photovoltaics, diesel, LPG (propane and butane), and renewable fuels including hydrogen.
- Vertically integrated manufacturing footprint
Helicopter Access only site with Polar propane generators
NASDAQ: POLA
Vertical Integration and Global Presence
- 70,000 square feet of vertically integrated manufacturing facility, Gardena, CA, with additional 20,000 sq ft warehousing facility:
-
- Current configuration has capacity to support $50 million-plus in total annual revenues
- $4.5 million in advanced fabrication equipment, automatic welders, test and inspection equipment
- Direct sales force in six continents
- Rapid prototype, engineering and R&D facilities collocated with manufacturing to build custom products
- Trained and qualified third-party service centers to enhance customer experiences
- Key vendors / partners - Toyota, Bosch, Yanmar and others
POLAR POWER
Corporate HQ
POLAR POWER |
LOCATION |
HEADQUARTERS |
Gardena, CA, USA |
SUPPORT CENTER |
Bucharest, Romania, Gardena, Johannesburg SA |
SALES OFFICES |
8 Sales Offices - 3 U.S.; Australia, Dominican |
Republic; Dubai, U.A.E.; Poland |
|
AUTHORIZED SERVICE FACILITY |
15 Third Party Service Centers with over 50 |
locations |
|
NASDAQ: POLA |
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Diversified Markets and Customer Base
Telecom
. |
Industrial |
Backup + Prime Power
A single Tier 1 account can provide over $20M in annual revenues, 3-5 year sales cycle is typical. We are currently in field trails with multiple Tier 1 accounts.
Military
P O L A R
P O W E R ' S
C O R E T E C H N O L O G I E S
UPS + Prime Power, Data Centers Battery Systems, Cogeneration (CHP) Series Hybrid Electric Drives for Robots and Specialty Vehicles.
Marine and RV
Prime Power for Off Dock / Dry Camping
APU + PPU** Energy storage, Series
Hybrid Electric Drives for Specialty Vehicles and Robots. Contracts range $100K-to$1.5M, we manage 3 to 5 contracts/year.
Automotive
A N D P R O D U C T S
S E R V I C I N G M U LT I P L E
M A R K E T S
Series Hybrid Electric Drives for Yachts
Targeting $15M/year in sales with strong profit margins. Our sales have fluctuated form $100k to $2M per year.
Nano/Microgrid/Solar
Prime Power, Bad grid, CHP Our largest market
opportunity, sales currently immaterial; Launching a product for the mass market with
Mobile Electric Car Charging and Stationary Charging with Propane and Natural Gas. Immaterial sales currently with strong prospects for future growth.
field trails beginning this year in Africa and Asia.
Oil Field and Mining
Communications, UPS + Prime Power Remote work camps
NASDAQ: POLA |
* UPS - Uninterruptible Power Supply **APU - Auxiliary Power Unit and PPU - Prime Power Unit |
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Key Differentiators and Customer Value Proposition
ALL Polar Power Technology Platforms feature:
- High fuel efficiency
- Low acoustic noise
- Very compact and light weight
- Generator controls have built-in battery charging algorithms
- Remote monitoring and control
- Reliability even in extreme temperatures and weather conditions
Telecom focus is on reducing CAPEX and OPEX:
- Cost Savings in deployment is estimated in the $10s of millions per year for Tier-1 telcos
- Eliminates need to purchase natural gas booster compressors (cost $18k to $22k)
- Eliminates need to rent large cranes to place generators on the roofs of high-rise buildings ($60k - $100k)
- Lower permitting and real estate costs (smaller equipment footprint)
- Improved fuel economy means greater reserve time on site
- Prime power sites can see a 40% to 70% decrease in fuel costs
Why DC generator and not AC? Because solar PV, batteries, fuel cells, and most electronics are all DC devices and DC generators are more efficient and reliable.
Military focus is on the following:
- Reliability, durability and lower maintenance
- Significant reductions in space and weight
- Custom packaging available as a service
- Low RF / EMI emissions, invisible to detection.
- Ideal platform for automated systems, robotics, drones, communications
NASDAQ: POLA |
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Company History-Elite Corporate and Government Client Roster
TELECOM |
MILITARY |
OTHERS |
Polar Power is launched with the introduction of solar powered vaccine refrigerators for cold chain in rural areas
Contracts for power systems - US Navy, US Army, Hughes, Martin Marietta, NASA, Aramco
Introduced DC generators and hybrid solar systems for telecom and off grid markets. ATT, Bell Groups, APS
1979 1980 1990
Received production |
IPO |
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contracts from top 3 tier-1 |
Expanded global sales |
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telecom companies |
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infrastructure |
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Produced mobile EV |
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Grew sales to $24 million |
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chargers for Ford, |
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Chrysler/Fiat, Mazda, |
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Volkswagen, Bosch |
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2010 |
2016 |
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Introduced Toyota line of Propane / NG Prime Power and 27KW DC generators for 5G market
2023
NASDAQ: POLA |
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Growth Strategy
Domestic Strategic Overview
- 5G Growth expected to increase backup generator replacement market to higher power generators
- Market 27 KW product line to Tier-1 telecom operators - 50% higher ASP than our existing DC power systems (offers 40% lower fuel consumption and lower emissions)
- Continue with Solar Hybrid product line for off-grid applications
- Market low emission Natural gas and LPG product line to urban centers
- Demand for "always on" power requirements (IoT) expected to grow backup market by 9.4% CAGR (2022-2028)
- Expand field services and commissioning
International Strategic Overview
- Expand Hybrid product for off-grid and bad grid applications in developing nations
- Promote low emission natural gas and LPG product line Globally, targeting bad grid in urban markets
- Partner with LPG Producers and distributors to market and promote lower cost fuel alternatives to diesel
- Target OPEX models jointly with LPG distribution companies
- Provide lease of equipment so telecoms can operate on a OPEX model
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Innovating Power Generation- A Better Technology Platform
- The Toyota series of prime power engines in combination with Polar's alternators provides the performance necessary to make nano grids practical using LPG and natural gas as a fuel.
- Diesel is not practical for nano grids, CHP, or micro-cogeneration as diesel has become too expensive and there are increasing concerns over pollution.
- Backup generators are not engineered for prime power. 30 kW and smaller backup LPG generators are typically replaced at 3,000 to 4,000 hours of run time. Their low fuel efficiency also renders them not cost effective.
- The Polar / Toyota prime power generator (model 1KS-CHP) has the oil changed at 4,500 hours. Fuel efficiency is high.
- Most applications for power generation will require an engine and alternator. Increasing the efficiency of the both the engine and alternator (generator) is required to compete with a diesel generator.
- A diesel engine has a higher compression ratio than spark plug ignition engine, and this gives the diesel engine higher fuel efficiencies. The popular "lawn and garden" engines, used by most backup generator companies, have lower compression to reduce engines' production cost, size, and weight.
- To compensate the fuel efficiency difference between the 2 technologies (compression ignition/ diesel and spark ignition / LPG) Polar took the following steps:
-
- Build with Toyota 1KS engines which have a higher compression ratio compared to most LPG engines, approximately 12:1 verses the lower 9:1 found in competitors' products.
- Redesign: the coolant pump, fans, and SLI alternator were removed from the engine reducing the parasitic losses in the engine and improving fuel efficiency; coolant pump and fans are electrically driven at optimum speeds improving reliability and efficiency.
- Utilize permanent magnet alternators optimized for production of DC current as opposed to AC. This increased efficiency in generating electricity and reduces fuel consumption.
- Optimizations to the overall application to further reduce fuel consumption. For example, being able to charge batteries directly from the DC generator as opposed to using battery chargers with AC generators reduces fuel consumption and system cost.
- In a generator application the Toyota 1KS engine has a serviceable life span of 60,000 to 90,000 hours compared to a Diesel engine with life span of 12,000 to 30,000 hours.
- The overall result is lower maintenance, higher reliability, and lower fuel costs than a diesel fuel AC generator.
NASDAQ: POLA |
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Telecom Generator Market
- U.S has total of 424,960 telecom towers out of 6.9 million sites worldwide, approx. 5.4% (not including the controls, energy storage, maintenance dollar opportunities).
- Globally the backup market is now addressing increasing energy demand, more frequent and longer power outages. Generators need to be more efficient, lower emissions, and longer runtime with lower maintenance.
- In the U.S. 37% of the telecom generator market is less than 25 kw., while 23% is of generators operate between 25 kw - 50 kw
- As the telecom market has changed, Polar product range is continuously expanded to meet market demands. Polar market share is estimated to be 12% in U.S. mainly targeting the less than 27 kW backup market.
- 5G growth expected to increase backup generator replacement market to higher power generators
Reference: https://www.gminsights.com/industry-analysis/telecom-generator-market
NASDAQ: POLA
Polar rooftop installation
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Polar Power Inc. published this content on 08 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2024 14:43:40 UTC.