2012 Annual General Meeting

Brendan Dow

Managing Director

29 October 2012

Agenda

Review of FY12

– Sales & Marketing

– Products

– Manufacturing

Corporate Restructure

Targets for FY13

North Rhine Westphalia market introduction program

Current Status CFCL has commercialised its technology into products and is selling to customers and through local distributors

Our technology has a clear competitive advantage – Higher electrical efficiency creates more value for customers

Revenue and Sales growth of ~80% p.a.

German manufacturing plant built and operating

Increased policy support in key markets (Germany, UK)

Raised $11.6m in September 2012

Cutting costs and focusing activities in key markets

Review of FY12 Sales & Marketing

Units sold up by 177%, from 61 to 169

82% increase in sales revenue, to $6.7m

78% of sales from Germany, The Netherlands and the UK

Order for up to 60 mCHP units and 45 BlueGen units from E.ON UK

New product website, www.bluegen.info – in English, German and Dutch

Presented at conferences in Japan, Germany, UK, USA and Australia

Prime-time media exposure in the UK and Australia

Increasing Sales

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50

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300

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10

20

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50

60

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80

Un

its

Unit Sales

Quarterly (LHS)

Cumulative (RHS)

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

FY 09 FY10 FY11 FY12

CFU Revenue (AUD m)

Review of FY12 Products

Trained local installation, service and support companies in Australia, UK & Germany

Expanded BlueGen-net remote monitoring service

Over 1m hours of combined operation

Reorganised internal service & support structure, field engineers in the UK and Germany

Technical improvements achieved; ongoing progress towards commercial targets for lifetime & reliability

BlueGen-net

Interactive global map of all units

On-line product monitoring and support by CFCL

For each unit: detailed log of all performance data,

maintenance and support actions

Shows status of all units, click through to dedicated

screen for each unit

Review of FY12 Manufacturing

Supply agreement with new supplier of fuel cell components, Three Circles, for increased volumes and lower costs

Ongoing work with other key component suppliers

Working to fully commission a large furnace and increase production volumes in Germany

Component costs reduced by an average of 25% from 2011 to 2012/13

Corporate Re-structure Results

A leaner organisation focused on European markets – Near term sales opportunities

– Favourable market settings

European Sales team strengthened and self sufficient

Board and Executive Team reduced

Component manufacturing at Noble Park outsourced

Supply chain shortened and simplified

Technology development delivering – Lower product costs

– Product reliability and compliance

Corporate Re-structure

Sales & Marketing

Heerlen (Netherlands)

Manufacturing

Heinsberg (Germany)

Technology & Supply Chain

Noble Park (Australia)

Finance & Corporate

Results continued…

Headcount reduced by 56 since 1st July 2012

Forecast overhead cost reduction of $5m per year

Simplified organisation structure:

Targets FY13 Sales

Continue strong revenue growth, translate the order book into sales and cashflow

Expand direct sales networks in Germany, UK and Benelux

Faster sales from distributors in Germany and Netherlands: – Complete the first orders of 100 units; order for 500 units in Germany

Secure larger orders from Utilities with fixed delivery dates

Deploy BlueGen units into large scale Virtual Power Plants

Deliver all units to EWE in the German NOW project and secure commercial market introduction of integrated mCHP product

Increase sales in UK through Resellers/Installers, Housing Associations, new build home contractors

Targets FY13 Products & Services

Finalise integrated mCHP product design and commence deployment with EON UK

Work with service partners to make it faster and cheaper for customers to install our products

Continue to transfer after-sales activities to local service partners

Release next version of BlueGen-net with updated customer control functionality

Continue to improve product performance, including longer stack lifetime and longer mean time between failure

Targets FY13 Manufacturing

Outsource remaining production activities and selected component supply from Noble Park to supply partners

Secure and implement agreements with remaining key component suppliers to increase scale and further reduce costs

Improve operational efficiencies to increase Heinsberg output without additional capital expenditure

Upgrade 2nd large furnace for additional capacity of 1,500-2,000 stacks per year

Targets FY13 Financial

Realign corporate structure and operational activities to substantially reduce overhead costs

Reduce operational cash burn by removing production activities from Noble Park, relocating responsibility for operational activities to Germany and refocusing Noble Park as our Technology Centre

Complete the implementation of the enterprise resource planning (ERP) system and processes

NRW Market Introduction Program North Rhine Westphalia (NRW) subsidy for mCHP products

Subsidy to commercial customers and Energy Service Companies to install mCHP products <50 kW

Subsidy varies between categories of products and related projects

CFCL estimates a subsidy of approx €10,000 per unit – Actual subsidy amount decided by Government body, based on cost of

reference product

Program begins now, due to run until the end of 2017

Part of NRW Government funding of €250 million for CHP – NRW is the most populous State in Germany (~18 million people)

– CFCL employs ~30 staff at our manufacturing plant in NRW

– NRW Environment Minister helped launch the BlueGen Virtual Power Plant on 2 October

NRW Market Introduction Program Value for Customers

Benefits for CFCL

Takes away ‘sticker shock’: makes products cost competitive

Drives sales volumes, which in turn reduces costs further

Estimated value model for a commercial customer:

BlueGen installed price € 30,000 Estimate, including installation, ex VAT

NRW Subsidy - € 10,000 Estimate

Federal Subsidy - € 1,650

Net price € 18,350

Return per year € 2,600

Estimate: avoided grid price and taxes, + feed in tariff + heat benefit

Payback 7 years

Trianel VPP

Virtual Power Plant of 25 BlueGen units Opened in Aachen, North Rhine Westphalia

on 2 October 2012 by Mr Peter Altmaier, Germany’s Minister for the Environment

Questions

19

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© Ceramic Fuel Cells 2012