Infinite Drive Copyright 2018, Plug Power Inc. May 23, 2018
Safe Harbor Statement This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. ( PLUG ), including but not limited to statements about PLUG s expectations for 2016 and 2017, including GAAP revenue, number of GenDrive shipments, number of GenFuel sites, number of ProGen modules, GAAP gross margin, bookings and net cash use, future product cost reduction, PLUG s growth in multi-site customers, PLUG s entry into new markets and products, including but not limited to ProGen and the electric vehicle market in China and the viability and growth of such market. You are cautioned that such statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will have been achieved. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, the risk that we continue to incur losses and might never achieve or maintain profitability; the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or converted to revenue, in whole or in part; the risk that pending orders may not convert to purchase orders, in whole or in part; the risk that a loss of one or more of our major customers could result in a material adverse effect on our financial condition; the risk that a sale of a significant number of shares of stock could depress the market price of our common stock; the risk that negative publicity related to our business or stock could result in a negative impact on our stock value and profitability; the risk of potential losses related to any product liability claims or contract disputes; the risk of loss related to an inability to maintain an effective system of internal controls or key personnel; the risks related to use of flammable fuels in our products; the cost and timing of developing, marketing and selling our products and our ability to raise the necessary capital to fund such costs; the ability to achieve the forecasted gross margin on the sale of our products; the risk that our actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for our products; market acceptance of our products, including GenDrive, GenSure and GenKey systems; the volatility of our stock price; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for our products; our ability to develop commercially viable products; our ability to reduce product and manufacturing costs; our ability to successfully expand our product lines; our ability to successfully expand internationally; our ability to improve system reliability for our GenDrive, GenSure and GenKey systems; competitive factors, such as price competition and competition from other traditional and alternative energy companies; our ability to protect our intellectual property; the cost of complying with current and future federal, state and international governmental regulations; risks associated with potential future acquisitions; and other risks and uncertainties referenced in our public filings with the Securities and Exchange Commission (the SEC ). For additional disclosure regarding these and other risks faced by PLUG, see disclosures contained in PLUG's public filings with the SEC including, the "Risk Factors" section of PLUG's Annual Report on Form 10-K for the year ended December 31, 2017. You should consider these factors in evaluating the forward-looking statements included in this presentation and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information. 2
Our Mission Changing the way the world moves by developing industry-leading hydrogen fuel cell energy solutions for high growth mobility markets around the globe 3
The Future of Mobility is Electric The global electric vehicles market is expected to reach >$350 billion by 2025 1 Industrial and commercial electric vehicles today represent 60% of the electric vehicle market 2 Industrial Mobility Robotics & Drones Commercial Trucks Autonomous Vehicles Commercial Buses EV Use Cases Will Have high utilization and long run times Require reliable performance in harsh environments Leverage cost efficient, rapid fueling options Be adaptable across a range of energy needs Be fully sensored and constantly connected Have zero emissions 1. IDTechEx Market Research: Electric Vehicles Change the World 2017-2037 2. Research and Markets: Industrial and Commercial Electric Vehicles on Land 2017-2027" 4
Success in Our First Market: Growing Share in Material Handling Applications The global material handling market represents > $30 billion total market opportunity Plug Power owns 95% of current market share for hydrogen fuel cells Plug Power s technology drives productivity and streamlines operations for our customers Constant power and improved performance drives improved operator efficiency Reduced downtime due to battery changes/charging Space savings IoT proactively identifies issues to maximize uptime Technology drives performance Reputation attracts new clients Growth enables re-investment in our business 5
Success in Our First Market: Loyal and Repeat Blue Chip Customers M u l t i - multi-site & repeat customers 6
Full Suite of Products Accelerates Customer Adoption Complete solution drives customer adoption Hybrid fuel cell engines for a variety of applications Industry-leading high-power and air-cooled designs Lower cost / higher performance 35+ years of Plug Power IP Hybrid electric fuel cell solution for forklifts 20,000+ units in the field Drop-in replacement 150M+ operating hours Fueling infrastructure and fuel delivery 60 installed sites 300+ hydrogen dispensers 15k fuelings/day, 10M+ total Complete service and maintenance 98+% uptime performance IoT data collection, monitoring and control driving efficiency and uptime 7
Walmart is a Long-Term Strategic Partner Plug Power s relationship with Walmart represents the largest hydrogen enabled fleet in the world 2014 Initial agreement signed for multiple sites GenKey installed in 6 distribution centers with 1,700 GenDrive units in 2014 2015 2016 2017 and beyond 9 GenKey sites added >1 million fuelings over the year 2,500 GenDrive units deployed in 2016 Total of 25 sites commissioned to date >5,500 trucks in service across North America Signed follow on multisite agreement to continue expansion in 2017 and beyond Warrant structure connected to $600 million future spend (>100 potential sites) Deployed 8 sites in 2017 We are pleased with the performance of the hydrogen fuel cells that we have been operating and are excited to expand our program with Plug Power. Jeff Smith, Senior Director for Walmart Logistics 8
Plug Power Signs Strategic Agreement with Amazon Amazon establishes multi-year, multi-site customer agreement with Plug Power Background Plug Power and Amazon actively engaged in 2016 Amazon recognized Plug s value proposition, including the ability to enhance productivity First Site Success First site went live in Q4 2016 Completed system installation in 8 weeks Multi Site Agreement Announced in 2017 Over $70 million revenues in 2017 (10 sites) Multiple existing and new potential sites in scope Included collaboration for other mobility applications Investment in Plug Power Warrant structure connected to $600 million future spend 9
Plug Power is the Leader in Hydrogen and Fuel Cell Technology >5x revenue growth since 2013 1 st to create a market for HFC technology 20K+ units in the field Blue Chip Customer Base 12 HFC trademarks 70% reduction in equipment cost profile since 2013 150MM+ operating hours >150 HFC patents 10
Rapidly Growing Sales & Deployments GenKey Installs Cumulative GenDrive Units 60 > 20,000 42 14,800 26 6,700 10,600-8 2013 2014 2015 2016 2017 4,400 2013 2014 2015 2016 2017 11
Cost Controls and Economies of Scale Drive Margin Expansion 100% 50% 25% 13% Cost Reduction is the Key to Success GenDrive Unit Cost Over Time R² = 0.99 Expected Additional ~40% cost reduction Many factors will continue to support steady cost reduction Volumes Multi-year sourcing allows us to take advantage of lower pricing associated with higher volumes Dual source strategies Risk mitigation Cost reduction and supplier innovation Integration Functional & Vertical Tooling, Automation Industry leverage of key components Sector expansion drives component pricing Examples include membranes, batteries, etc 12
Significant Opportunity to Leverage First Market Near-Term Growth Opportunities Large Penetrable Market Expanding Relationships with Existing Customers Europe Market Application Expansion >$30B total global opportunity >$15B addressable opportunity between European and U.S. markets Top 7 clients represent at least 200 uninstalled sites Considerable opportunity to sell additional services to existing customers Strong early customer base with potential for expansion Strategic relationships, including our relationship with Air Liquide, enable additional opportunities Extension of GenDrive product design addressing comparable use case requirements Examples include ground support equipment (GSE) and automatic guided vehicles (AGV) 13
Moving Beyond Material Handling Why the Electric Vehicle Market Continues to Grow 1. Design Simplicity 2. Lower Total Cost of Ownership 3. Higher Reliability 4. Self-Driven Vehicles / Autonomy 5. Climate Change The world is going electric, and EVs provide value over traditional IC engines. EVs: electric vehicles IC: internal combustion 14
Why Fuel Cell Vehicles will be a Big Portion of the EV Market Attributes of Fuel Cells Potential Opportunity 1. Power Density is 10x BEVs 2. Asset Utilization 3. Sharing Economy 4. Fast Fueling 5. Range FCEVs are Ideal for Commercial Vehicles. FCEVs: fuel cell electric vehicles 15
Why Plug Power will be a leader in the Electric Vehicle Market Plug is market leader with > 20k fuel cell units and > 300 fueling dispensers deployed. Plug s broad technology platform is purposely modular and scalable Plug core competencies including system integration, service support, and fueling solutions Material handling applications are more challenging than broader EV Opportunities Application requirements across the EV market have commonality EVs: electric vehicles 16
ProGen Platform Unlocks a Vast Opportunity Set ProGen Fuel Cell Stack Modular Design Enables Mass Adoption ProGen Stack Module GenDrive Unit Currently incorporated into our mobile and stationary products Scalability allows customers to adopt fuel cell power on their terms Original equipment manufacturers (OEMs) can easily integrate Flexibility drives penetration into new markets: Ground support, range extenders, commercial vehicles A Proven Record Sets the Industry Standard 15% increase in fuel efficiency (relative to former engines) 15% increase in run-time (relative to former engines) 2 million hours of run-time across GenDrive units 6,000 ProGen stacks used across stationary and mobile 17
Volumetric Power (KW/L) Plug Power Stack Technology: The Heart of ProGen Engines Stack Cost 3.1 B Best in Class Automotive B Stack Launch ProGen Launch 1.7 B Best in Class Graphite B 2010 2012 2014 2016 2018/ 2019 Best in Class design: 1/2 volume, 2X power density, 25% cost reduction (at volume) 18
ProGen Product Applications 15-30 kw: Airport GSE 30 kw: Light Duty Trucks, Small Transit Buses 60-100 kw: Trucks, Full size Hybrid Buses 80-100 kw: Small and Midsize Auto 19
Leveraging existing technology to Increase range & power Clear Roadmap to Replicate First Market Success Example: H2 City Captive TODAY Vehicles within a defined space e.g. Forklifts, Ground Support Tethered Local TODAY & NEAR HORIZON Vehicles that return home each night e.g. FedEx, USPS Vehicles stay in a defined region e.g. Utility, delivery, buses, drones Regional National 1-3 YEARS Supports broader range than local area e.g. Taxis, longer range buses, trucks 3 YEARS+ Supports broader range than regional area e.g. Personal vehicles 20
China Represents a Substantial Opportunity Plug Power s experience and expertise is directly translatable to this growing market The world leader in investing in new energy technologies >$100B of new investment in 2015 more than rest of world combined Large push to combat pollution and reduce global carbon footprint Fuel cells have been identified as a part of their 5 year plan with significant subsidies proposed for FC vehicles at state and provincial levels Building on momentum of battery EV expansion 10x increase in EVs from 2013 to 2015, driven by commercial vehicles Fuel cells provide longer range, faster fueling and better energy density for high-performance and commercial/industrial applications Plug has made significant progress in this market Qualified first prototype with top tier China specialty vehicle OEM Established clear plan to develop China strategic partnership in 2018 Current solutions provide scalable rollout with attractive margin profile 120 100 80 60 40 20 0 500 400 300 200 100 0 8 8.3 China New Investment in Renewable Energy ($Bn) 1 7 39.6 Electric Vehicle Sales (Thousands) 2 10 2. Bloomberg New Energy Finance 36 102.9 2005 2010 2015 1. Global New Investment in Renewable Energy by Region, 2004-2015, $BN United Nations Environment Program 128 2011 2012 2013 2014 2015 North America Europe China Japan RoW 21
Plug Power is Leading the commercialization of hydrogen fuel cell technology Leveraging our proprietary and flexible ProGen fuel cell engine platform Expanding our market position in material handling applications Replicating success in first market achieved in multiple new markets Delivering strong and predictable revenue and margin growth 23
Corporate Headquarters 968 Albany Shaker Road, Latham, NY 12110 West Coast 15913 E. Euclid Avenue, Spokane, WA 99216 plugpower.com Andy Marsh, President and Chief Executive Officer Paul Middleton, Chief Financial Officer Investor Relations investorrelations@plugpower.com