1CompanyOverview222WhoWeAre»ActivePowerisagloballeaderinflywheelenergyandpowertechnologyformissioncriticalapplications»Productsbuiltonelegantandprovenflywheelandpowerelectronicstechnology»Combinedbenefitsofproducts’powerdensity,reliability,andtotalcostofownershipareunmatchedinthemarket»Chosenbymarqueecustomersandpartnersaroundtheworld3ActivePower…BytheNumbers»Founded1992;IPO2000»HQinAustin,TX,withoperationscentersinUK,Germany,andChina»230+employees»4,000+flywheelsinsystemsshippedworldwideGlobalPartnersGlobalCustomers»150+infrastructuremodulesdeployedworldwide»50+countrydeployments»150+millionhoursoffieldruntime»900+megawattsdeployed»100+globalpatentsissued444CompanyHistory19991stintegratedflywheelUPSdeployed(CleanSourceUPS)SignedCaterpillarasOEMpartner1996ChangednametoActivePower,Inc.2001OpenedmanufacturingfacilityinAustin,TX1992MagneticBearingsTechnologies,Inc.,founded2007EMEAHQopened2008SignedHPasstrategicMISpartner2009APACHQopened2,000thflywheelshipped19971stCleanSourceDCdeployed2000InitialPublicOffering(NASDAQ:ACPW)20061stCleanSourcePowerHousedeployed1,000thflywheelshipped20113,000thflywheelshipped20131stCleanSourceHDUPSshipped4,000thflywheelshipped1990199520002005201020155FlywheelandPowerElectronicsSupportFiveCoreSolutions666IncreasingNumberofConnectedDevices1KeyMarketDrivers1DaveEvans,CiscoInternetBusinessSolutionsGroup,“TheInternetofThings:HowtheNextEvolutionoftheInternetisChangingEverything,”atpage3,April20112451Research,“2013Preview–DatacenterTechnologies,”April20133DatacenterDynamics(DCD),“GlobalDataCenterInvestment2013,”Feb20140.5B12.5B25.0B50.0B200320102015E2020EMoreConnectedDevices=GreaterServerDemands»ConstantcreationandusageofdataincreasesdatacenterITcapacitywhichrequiresmorepower»Numberofdevicesconnectedtointernetforecastedtoreach25billionby2015,1increasingdatacenterserverdemands»ITandpowercapacitydemands–outpacingtraditionallengthyconstructionschedules,drivingdemandformodularsystems»Healthygrowthindatacenterinvestmentglobally(i.e.,facilities,powerandcoolinginfrastructure,etc.)–growing17%peryear,2010-20133$0.7$2.5121314E15EPrefabricatedModularDataCenterMarketGrowth2($billions)777PowerLossImpactsIndustriesinDifferentWaysFinancialandOperationalImpactManufacturingDataCenterHealthcareAverageDowntimeCost/Hr$1.6M3$474K4$636K3Downtime=•Immediatelostrevenue•Customerdissatisfaction•LossoffuturebusinessLineinterruptions=microoutagescauselongdelaysorcanceledshipmentsInaccessibledata=transactionsnotprocessedorlostInterruptedprocedure=erroneousorrepeatedtestsLostproductivity=•Increasedcosts•Disorganization•Qualitycontrolissues•Wastedproductbatches•Machineryrepairdowntime•Idleworkers•Thermaloverloaddestroysservers•ITstaffreplacesfailedcomponents•Patienttrauma•LawsuitsFinancialandOperationalImpactofPowerDisturbances96%ofAllPowerInterruptionsLastLessThan10seconds1......ButCostU.S.Businessesupto$150BillionAnnually21ElectricPowerResearchInstitute(EPRI)2GalvinElectricityInitiative,“ElectricityReliability:Problems,Progress,andPolicySolutions,”Feb2011,pagei.3AvailabilityDigest,“TheValueofAvailability,”June2011,at24PonemonInstitute,“2013CostofDataCenterOutages,”Dec2013,at11888KeyEnabler–TheFlywheel»Patentedflywheeltechnologythatprovideselegant,efficient,andeconomicalenergystorageinmissioncriticalandsmartgridapplications»Withinalowfrictionenvironment,thespinningflywheelisamotor,convertingelectricalenergyintokineticenergywhenutilitypowerisflowing»Whenpowerisinterrupted,flywheelbecomesagenerator,convertingkineticenergyintoelectricalenergytosupportmissioncriticalload»Technologycoveredby107ActivePowerpatentsissuedworldwide»Supportedbylongtenured,worldclassengineeringandR&Dstaffwithmorethan300yearsofcollectiveexperienceatActivePowerPatentedFlywheelTechnology999MissionCritical:CleanSource®UPS/DCCleanSource300andCleanSource750HDUPSCleanSource250DCandCleanSource500DCUPSprotectsdatacentersandothermissioncriticalapplicationsfromdowntimeDCenergystoragereplacesbatteriesorcombineswithlegacyUPSwithbatteriesEndusersincludehyperscale,enterprise,andcolocationdatacenters;industrialandprocesscontroloperations101010WeBridgetheGapwithOurUniqueFlywheelBackupPowerSystemDieselGeneratorAutomaticTransferSwitchActivePowerUPSCriticalSystemsOurUPSconditionsutilitypower,protectingmissioncriticalloadsagainstalltypesofpowerdisturbances(i.e.,surges,brownouts,etc.)UponLossofUtilityPower:1.ActivePowerUPSinstantlysupportstheload2.Transferswitchsignalsgeneratortostart3.GeneratorcarriesloaduntilutilitypowerisrestoredUtilityPower11PowerConditioningFrequencyHarmonicDistortionLineNoiseTransientsSpikesSurgeSagBrownoutOutageCleanSourceUPScorrectsall9IEEEdefinedpowerproblemsCorrectedSinewaveCleanSourceUPSProvidesClean,ReliablePower,ProtectingAgainstAllTypesofPowerDisturbances121212DeliveringaSetofTangibleOperationalAdvantagesSuperiorpowerdensity:criticalpowerdeliveredinabout½thespaceoflegacyUPSFreesupmorefloorspaceforrevenuegeneratingequipmentProven80%lesslikelytofailversuslegacyUPS1Uniquepatenteddesigndeliverspredictable,consistent,andcontinuousoperati