2. Safe Harbor Statement
This presentation contains forward-looking statements, including
statements regarding the Company's plans and expectations regarding the
development and commercialization of fuel cell technology. All forward-
looking statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projected. The forward-looking
statements speak only as of the date of this presentation. The company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in the
Company's expectations or any change in events, conditions or
circumstances on which any such statements are based. The Company
may refer to non-GAAP (generally accepted accounting principles) financial
measures in this presentation. The Company believes that this information
is useful to understanding its operating results and the ongoing
performance of its underlying business.
2
3. Integrated Fuel Cell Company
Design &
Manufacture
Megawatt –class power
generation solutions
Services Direct Sales & via
Over 80 DFC® plants
operating at more than 50 Partners
sites – 1.5 billion kWh ultra- Installations/orders
clean power produced in 9 countries
Engineering /
Construction
Over 300 megawatts
installed and in backlog
3
4. 2012 in Review
Global Foundation for Growth
• Global footprint solidified
– Asian market expansion / POSCO agreement ($181M)
– European presence established / FCES formation
– Strengthened balance sheet
• Trend towards larger installations
– 14.9 MW Bridgeport Fuel Cell Park
– 59 MW fuel cell park in S. Korea
• Increasing annual run-rate in USA by 25%
– Ramping in 2013 to 70 MW annually from 56 MW
• Entered data center market - Microsoft project
• Versa Power Systems (SOFC) acquisition
• World’s largest renewable biogas fuel cell plant
now operating
– 2.8 MW plant operating at a wastewater treatment facility
4
5. Distributed Generation Market
Ultra-Clean Baseload Distributed Generation Solution
– Easy to site in populated areas
– Generates more power output per unit of fuel w/ 47%-70% electrical efficiency
– Up to 90% total efficiency when using Combined Heat and Power (CHP)
– Fuel flexible: Clean natural gas or renewable biogas
On-site Power Electric Grid Support
• High efficiency drives economics • Cost–effectively add power generation
• Virtual lack of pollutants eliminates future when/where needed
clean air compliance concerns • Reduces grid congestion
• CHP reduces costs & supports sustainability • Supports renewable portfolio standards
• Supports energy security • Reinforces grid reliability
• Power reliability improved • Heat sold to neighbors or used to
enhance electrical efficiency
Fuel cell park
supporting the
electric grid
Fuel cell power plants
at a University, a
commercial bakery,
and a municipal
pump station
5
6. Sizable Market Opportunity
Clean Natural Gas Renewable Biogas
• $4 billion mid-term market • $2 billion mid-term
opportunity for power plants market opportunity for
• $4 billion services opportunity power plants
• $2 billion services
1. Electric Utilities & IPPs opportunity
2. Education & Healthcare
3. Gas Transmission 1. Wastewater
4. Industrial 2. Food & Beverage
5. Commercial & Hospitality Processing
6. Government 3. Agriculture
7. Oil Production & Refining 4. Landfill Gas
$12 billion market opportunity for
power plants and services
6
7. Trend to Larger Installations
• Ten years ago - installations were 59 MW fuel cell park
Hwasung City, S. Korea
individual sub-megawatt plants
• Five years ago - megawatt-class plants
11.2 MW fuel cell park 14.9 MW fuel cell park
Daegu City, S. Korea Bridgeport, Connecticut
10.4 MW fuel cell park
Yeosu, S. Korea
4.5 MW directed
biogas project
San Diego, California
Today
2.8 MW renewable
biogas plant Multi-megawatt plants
Chino, California
and fuel cell parks
7
8. Vision & Objectives
Vision: Pricing below the grid, without incentives
Business Objective: Attain profitability, continued global growth
• Volume drives prices below the grid, accelerating adoption
• 210 MW drives LCOE below grid costs
• Integrated global supply chain supports production in USA, S. Korea and Europe
• Revenue diversity
• Power Plants, Kits, Services, Royalties, Advanced Technology programs
• Geographic and Market diversity
• Leverage resources with strong global partners
Global Technology and Manufacturing footprint
Connecticut, USA Ottobrun, Germany Pohang, South Korea
Produces for global markets Capacity for European market Capacity being built for Asian market
8
9. North American Strategy
• On-site power opportunities
– California
– municipalities, universities, and
– State government
– SGIP Program with commercial customers
– CT with LREC program and CT150 1.4 MW CHP configuration at a Municipal
government building
– Data centers
– NJ and HI represent near term opportunities
Bridgeport fuel cell park
• Electric Utility opportunities • Developed by FCE / sold to
– Dominion project attracting attention Dominion
– Economical RPS compliance • Fully operational by end of 2013
– CT Renewable Connections Program • Economic benefits for broad
number of constituents
• Project finance enables orders • FCE operates and maintains facility
– Repeatable project finance offerings with for 15 years
customers and project investors (ownership, • Strong local, State & Federal
PPA, Lease) support
– Establish tax equity project finance program
9
10. Asian Strategy
• Expanding market opportunities through POSCO Energy relationship
– RPS demand / Export opportunities / Seoul City 230 MW program
• Benefit from Asian market growth with royalties and lower product costs
• Cell component manufacturing in S. Korea
– Expands global manufacturing footprint without direct capital investment
– Leverage global supply chain for cost reductions
– Second source of supply important to prospective customers
• 121.8 MW multi-year order provides committed production to USA facility
• POSCO investments validate market opportunity
59 MW fuel cell park under construction
Increasing global production
reduces product costs
$10,000 through volume purchasing
$7,500
Product Cost per kW
$5,000
$2,500
$0
2003 2007 current mid-term
10
11. European Strategy
Need clean baseload distributed generation DFC® plant to be
installed in
– Germany replacing nuclear power Federal Ministry
of Education
– UK pursuing low-carbon power generation Research
complex
Berlin, Germany
Near-term opportunities
– Attractive economics
o Low emission profile and CHP valued
DFC® plant to be
– Establish showcase installations installed in 20 Fenchurch
office tower
– MW-class opportunities emerging London, England
Multi-channel Strategy
– Direct via FuelCell Energy Solutions, GmbH
o JV Partner with Fraunhofer IKTS
o European manufacturing presence essential
o Invest to support backlog
– Partner with Spanish-based Abengoa
11
12. Competitive LCOE
Unsubsidized Levelized
$/kWh Cost of Energy
$0.30
(d)
$0.25 T&D
$0.20 $0.24
to
$0.12
T&D
$0.15 T&D
(a) CT Baseload Power $0.14
$0.14 - $0.15
$0.14 T&D $0.15 CA Baseload Power $0.12
to to
T&D $0.11
$0.10 T&D $0.09 $0.07
to
$0.10
$0.09 - $0.11(b) $0.09 $0.08
to $0.07
to
$0.05
$0.05
Combined
Wind Cycle Nuclear Coal
FuelCell Solar PV Geothermal
Energy Intermittent Renewable Generation Central Generation(c)
$0.00
(a) FuelCell Energy’s current 10-year LCOE is $0.15/kWh assuming natural gas cost of $8/mmBtu or $0.14.kWh assuming $6/mmBtu gas cost as each
$2/mmBtu change equates to about $0.01/kWh
(b) Mid-term LCOE target range of $0.09-$0.11/kWh based on global production volume of 210 MW annually
(c) Does not include disposal or incremental emission clean-up costs
(d) Cost of Transmission & Distribution estimated to add up to $0.024/kWh
Source: Company estimates, Lazard’s Levelized Cost of Energy Analysis—Version 5.0 , U.S. Energy Information Administration (EIA) & Oak Ridge National Lab.
12
13. Advancing to Profitability
Record backlog
millions Annual Revenue millions
$125 $450
$100
$300
$75
$50 $150
$25
$0
$0 2010 2011 2012 Q1 2013
2010 2011 2012 Product Services Advanced technology
• Gross margin positive Multi-year Committed & Available
at 50 MW production for USA manufacturing facility
megawatts
• Continued margin 90
expansion with volume Sales targets
• Positive EBITDA at 60
Plants in backlog -
~80MW committed
• Net income positive 80- 30 LTSA - committed
90MW Kits - committed
0
2012 CY-2013 CY-2014 CY-2015 CY-2016
13
14. Versatile Technology
Renewable Hydrogen Generation,
Carbon-neutral data center application Compression & Storage
• 2% USA power usage is by data centers • Tri-generation: hydrogen, electricity & heat
• DFC® plant will convert renewable biogas • Markets: vehicle fueling & industrial applications
into power for a Microsoft data center • Enables hydrogen infrastructure
• Commercialization path with:
Carbon Capture Advanced applications
• Flue gas from coal-fired
power plants directed to
DFC® plant for CO2
separation
• Programs with US DOE • SOFC propulsion system for unmanned
44 MW carbon submersible under US Navy program
and US EPA capture system
• Unmanned aerial powered by SOFC combined
with storage under contract with Boeing
Leveraging Core Technology to Expand Market Opportunities
14
15. Foundation for Profitable Growth
• Highly efficient and ultra-clean distributed generation
solution meets market needs
• Clear path to profitability with committed order backlog
and growing global market adoption
• Production and supply chain being developed to enable
pricing below the grid, without incentives
• Leverage strong partners globally
– Partners helping to drive
– market adoption
– FCE benefits with margin improvement,
while optimizing capital deployment
2.8 MW
• Well capitalized to support growth
power plant
15
