POLAR POWER, INC. INVESTOR PRESENTATION
Polar Power is pioneering technology that can radically
change the production, consumption, and environmental
impact of power generation.
March 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 | 2 |
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
$11.6M 9-Month Revenues, 21% Sales Growth $5.1M Backlog (9/30)
Helicopter Access only site with Polar propane generators
NASDAQ: POLA
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
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
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
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
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 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 | 4 |
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 | 5 |
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 | |
6
Solar Hybrid Applications
- There are many applications that run the AC generator 24 hours a day without using solar this presents a huge consumption of diesel. And other applications the AC generator is run for a limited time each day powering the load while charging a battery, eventually shutting down and allowing the battery to power the load. When the battery charge is low the cycle repeats. First example consumes large volumes of diesel fuel, and second example will lower the fuel consumption.
- The lowest CAPEX and OPEX costs, most reliable operation, and environmentally friendly technology is combining solar with LPG.
- Its not a cost-effective solution for most applications to use 100% solar (PV). 100% solar typically requires the solar array to double in size and the battery bank to triple in size to manage those periods of low sunlight. To reduce the battery requirement and land space for the solar, a DC generator is included. The fuel used for the generator is typically lower in cost over increasing the battery size.
- The solar hybrid sites are typically designed for 80% to 90% solar energy with fuel providing 20% to 10% of the site's energy requirements. With lower fuel consumption, LPG presents a significant advantage over diesel.
- Prewired / prepackaged equipment reduces installation costs and improves serviceably. Its too costly to send engineers in the field to supervise the wiring of solar hybrid systems.
NASDAQ: POLA
EV 27 kW Mobile Car Charger
Two Chrysler / Fiat electric vehicles being charged at the same time during road testing
NASDAQ: POLA
- Polar has sold Mobile EV Chargers to Chrysler/Fiat, Ford, Bosh, Volkswagen and Mazda.
-
Polar projects the need for Mobile chargers for
"AAA" type road service is 1 to 2 years into the future. Its faster and lower cost to charge the EV in the field than to transport the EV to the nearest charger via flatbed truck. - Stationary rapid chargers for home / office vehicle charging fueled by natural gas will overcome buyers' resistance to purchasing EV and help launch micro-cogeneration in the USA.
8
Solar Hybrid Power System
- Most homes will not be able to fast charge EVs due to limited electric service; an LPG or natural gas DC generator provides fast charging and if the engine's waste heat utilized, this system can offer a lower carbon footprint than most electric utilities.
-
As the climate gets warmer the need for air-conditioning increases the demand on the electric utility grid. Japan faced a utility problem due to a rapid rise in air-conditioningdemand, to solve for this problem, engine driven heat pumps were developed to use
Japan's NG grid. Other Pacific Nations pursued same solutions using LPG. - In the early 1990's Polar engineered and manufactured power systems for Arizona Public
Service (APS) to provided electric service to off grid homes and farms. These small self- contained shelters were dropped off at the site and then connected to the properties power panel. Today we see a more efficient and expanded version that is applicable to on- grid, off-grid,and bad-gridlocations. A great opportunity for homes in the USA that are still using fuel oil for heating. - Polar's proposed system allows the home or office to draw its energy needs from the electric utility, gas company, and solar. It solves the issues of fast charging an electric vehicle at home, utility blackouts, peak power charges.
- Applications making the use of solar, LPG or NG, and the engine's waste heat will typically have both a lower carbon footprint and a lower energy cost than most electric utilities.
- Many utilities continue to burn diesel, fuel oil, and coal to produce the electricity they sell. There are also energy losses in the power lines that add to the fuel consumption.
NASDAQ: POLA
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 | 10 |
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Polar Power Inc. published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 04:07:03 UTC.
