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Mike Sund | Vice President, Investor Relations | msund@Maxwell.com | +1 858.503.3233
Maxwell Technologies August 2014
2
Forward-Looking Statements
Dependence upon the sale of products to a small number of customers and vertical markets, some of which depend heavily on government funding or subsidies which may not continue in the future;
Risks related to our international operations including, but not limited to, our ability to comply with changing rules and regulations in countries where we conduct business, our ability to oversee and control our foreign subsidiaries and their operations, our ability to effectively manage foreign currency exchange rate fluctuations, and our ability to continue to comply with the U.S. Foreign Corrupt Practices Act, anti-bribery laws of foreign jurisdictions and the terms and conditions of our settlement agreements with the U.S. Securities and Exchange Commission and Department of Justice.
Our ability to remain competitive and stimulate customer demand by successfully introducing new products and matching our production capacity to customer demand;
Statements in this presentation that are “forward-looking statements” are based on current expectations
and assumptions that are subject to numerous risks and uncertainties. Such risks, uncertainties and
contingencies include, but are not limited to, the following:
Dependence upon the sale of products into China and Europe, where
macroeconomic factors outside our control may adversely affect our
sales;
Acquisition, development and retention of key personnel;
Our ability to effectively manage our reliance upon certain suppliers of
key component parts and specialty equipment;
Our ability to manage product quality problems;
Our ability to protect our intellectual property rights and to defend
claims against us;
Our ability to enter into, manage and benefit from strategic alliances;
Occurrence of a catastrophic event at any of our facilities, and,
Our ability to obtain sufficient capital to meet our operating or other
needs.
Many of these risk factors are beyond our control, and there can be no assurance that we will not encounter additional
unforeseen risks and costs in the conduct of our business. Forward-looking statements included herein do not purport to be
predictions of future events or circumstances and may not be realized. The Company undertakes no duty to update any
forward-looking statement to reflect actual results or changes in our expectations.
3
2013 Revenue ($M)
Maxwell At-A-Glance
Founded in 1965; IPO - 1983
NASDAQ listed (MXWL)
Corporate Headquarters: San Diego, California
Overview
450 employees worldwide
Sales: U.S., Switzerland, Germany, China, Korea
Manufacturing: United States, Switzerland, China
Global Presence
Leading global supplier of Ultracapacitor
energy storage and power delivery solutions
for transportation and energy applications
Target Markets
2013 revenue: $193.6 million
Gross profit margins averaging ~40%
Financial Highlights
$136.3
$13.9
$43.3
Ultracapacitors Microelectronics High Tension
22%
7%
70%
4
Industry Leaders in Innovative, Affordable Energy & Power Solutions
Growing | Large Markets
Target markets over $1 billion in
2020 (19.2% CAGR)
Unique | Portfolio
Extensive, best-in-class portfolio
of Ultracapacitor, High Voltage
and Microelectronics solutions
Strong | Financials
Solid revenue growth, profitable, solid
balance sheet and cash generation
Global | Customer Base
Winning with world’s leading
transportation and energy brands
Experienced | Team
Deep technology and industry
expertise, track record of
delivering growth & value
5
Financials: Operating from a Position of Strength
Revenue ($M) Gross Profit %
EBITDA ($M) Strong revenue growth – 13.8%
CAGR over the last 5 years
Gross profit margin increased by
27% over the past 5 years
Profitable growth generating cash –
over $30M cash balance 2009
$101.3
$121.9
$147.2 $159.3
$193.5
$0
$50
$100
$150
$200
$250
2009 2010 2011 2012 2013
$5.5
$0.067
$6.9
$20.3 $21.7
($10)
($5)
$0
$5
$10
$15
$20
$25
2009 2010 2011 2012 2013
34.8%
38.7% 39.0%
41.3%
39.5%
30%
33%
36%
39%
42%
45%
2009 2010 2011 2012 2013
6
Accelerating Ultracapacitor Revenue – Maxwell’s Growth Engine
Revenues have grown at 32.8% CAGR over
last 5 years
Transportation and grid applications are main
revenue growth drivers
Investing and expanding product portfolio to
drive accelerated revenue growth
5-Year Revenue ($M)
$43.8
$68.5
$86.8 $96.0
$136.3
$-
$20
$40
$60
$80
$100
$120
$140
2009 2010 2011 2012 2013
Ultracapacitors
T R A N S P O R T A T I O N
C E L L S
M O D U L E S
G R I D
7
Ultracapacitors: Rapidly Capture Electrical Energy and Deliver Power
Requirement Ultracapacitors Batteries Combination
Rapid Energy Capture <1 second 2-5 seconds < 1 second
Rapid Power Delivery <1 second 2-5 seconds < 1 second
Extended Temperature Range Excellent Poor Good
Product Life 8-15 years 2-6 years 4-10 years
Run Time (Energy) Seconds to Minutes Minutes to hours Seconds to hours
2x
Extend operational
temperature range Lengthens battery
life by up to 2x
Enables rapid
response times
The Power of Ultracapacitors combined with Energy of Batteries:
8
The Global Energy Dilemma Unquenchable thirst for energy and power with mandate to reduce emissions
World Energy Demand Market Adoption
World energy demand to double and emissions to halve by 2050
Requires innovative energy and power delivery solutions
Transportation & grid markets reaching early adoption with key inflection points ahead
CO2 Emissions Reductions
2x Energy consumption
doubling by 2050
Halve Global
Emissions by 2050
Market Size (units) and Application(s) adoption Navigant, Deloitte & Touche, Frost & Sullivan, Maxwell Independent research and publicly available data.
UCAP sales & UCAP content – Maxwell internal projection based on historical trends and customer feedback.
Sources:
Early
Adopter
Target markets growing at 19.3% CAGR over 7 years – reaching >$1B by 2020
Early Majority
9
Transportation: Bus, Auto, Rail, Trucking
5-Year Revenue ($M) Market Adoption by Segment
Early market leadership driving significant revenue growth – 49.5% CAGR over 5 years
Stringent long term regulations mandate increased fuel economy & reduced emissions
Platform electrification accelerating Ultracapacitor adoption
Market Size (units) and Application(s) adoption Navigant, Deloitte & Touche, Frost & Sullivan, Maxwell Independent research and publicly available data.
UCAP sales & UCAP content – Maxwell internal projection based on historical trends and customer feedback.
Sources:
Transportation markets to grow at 21.6% CAGR reaching >$700M by 2020
$12.3
$23.5
$46.6
$67.7
$91.8
$0
$20
$40
$60
$80
$100
2009 2010 2011 2012 2013
Transportation Market Segment Revenue
Early
Adopter Early Majority
10
Operating in over 15 thousand hybrid buses and 1M start / stop vehicles worldwide
Leveraging leadership in auto and bus to capitalize on new emerging opportunities
First rail wins for electric propulsion, deliver significant energy & infrastructure savings
Major US truck OEM’s evaluating Engine Start Module for enhanced engine starting
Broad Ultracapacitor Application in Transportation Markets Ultracapacitors meet the increasing power demands of Transportation ndustries
BUS AUTOMOTIVE RAIL TRUCKING
Hybrid
Plug in Hybrid
Electric Bus
Engine Starting
Start / Stop
Regenerative Braking
Power Assist Hybrid
High Power e-Turbo
Active Suspension
Regeneration
Propulsion
Voltage Stabilization
Engine Starting
Engine Starting
Hybridization
Over 7M ultracapacitor cells shipped into transportation applications
11
Grid: Wind Energy, Backup Power, Grid Storage
5-Year Revenue ($M) Market Adoption by Segment
Established partnerships driving solid revenue growth – 5.8% CAGR over 5 years
Government policies driving more renewable power generation
Aging infrastructure requires fast response storage to stabilize output and improve reliability
Market Size (units) and Application(s) adoption Navigant, Deloitte & Touche, Frost & Sullivan, Maxwell Independent research and publicly available data.
UCAP sales & UCAP content – Maxwell internal projection based on historical trends and customer feedback.
Sources:
Grid market segments grow at 14.1% CAGR reaching >$400M by 2020
$57 $71 $72 $68 $71
2009 2010 2011 2012 2013
Grid Market Segment Revenue
Early
Adopter Early Majority
12
Broad Ultracapacitor Use in Grid Markets Ultracapacitors meet growing peak power and long life demands of grid market
Operating in over 30,000 wind turbine pitch control systems worldwide
Renewable firming demonstrations in US, Europe and Asia
Deployed in backup and gen-set starting where rapid response power is business critical
Growing number of commercial grid power wins in rail wayside market
WIND PITCH RENEWABLES TRADITIONAL RAIL WAYSIDE
Boost Power Assist
Fail Safe Backup
Solar & Wind Firming
Ramp Rate Control
Frequency Regulation
Voltage Stability
Peak Shaving
Load Shifting
Gen-set Starting
Power Stabilization
Spinning Reserves
Bridge Power
Backup Power
Energy Recuperation
Power Stabilization
Frequency Regulation
Over 8M ultracapacitor cells shipped into grid applications globally
13
Key Differentiation Capabilities
Core
Technology
Proprietary
Processes
Solution
Platforms
Customer
Intimacy
Strategic
Partners
Pioneered core ultracapacitor technology and high-volume manufacturing
Proprietary electrode fabrication yields significant cost and performance advantages
Expanding strategic partnerships to develop enabling platforms and accelerate adoption
Deepening existing customer relationships and acquiring customers in new segments
Core Competency & Differentiators Growth Investment Focus
14
Investing in Portfolio of Differentiated Products
2.85V / 3400F Cell with DuraBlue™
ULTRA 31/900 Engine Start Module New 2.85Volt 3400 Farad
Cell with DurablueTM
Sets new standard in energy and
power with most ruggedized
cell available
New Engine Start Module
for Medium Duty Trucks
ESM Ultra 31 / 900
DuraBlue™ : the world’s most rugged ultracapacitor technology
Expanded award-winning Engine Start Module line for medium duty trucks
Focusing investments to deliver increasing new products & speed time to market
Expanding business and technical partners to drive innovation and competitive separation
Delivering Best-in-Class New Products
15
Proven Global Supply Chain
Proven high volume supply capacity through long-term supplier relationships
Reliable, high quality manufacturing - ISO 9001/14001, OSHAS 18001 & TS 16949 certified
1st ultracapacitor factory automotive qualification in 2009
Supply Chain Partners Cumulative K2 & D Cell Unit Sales (m)
2
4
6
9
13
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013
2
4
4
6
8
10
14
Unique dual source electrode manufacturing with scalable production capacity
16
Leadership Team – Strong Technology Experience
(*new members of leadership team)
John Warwick* Senior Vice President, COO
*Joined Maxwell June 2013
• Emulex, Lantronix, PRTM/PWC, Western Digital
• High Tech Executive Leadership
Kevin Royal Senior Vice President, CFO
*Joined Maxwell April 2009
• Blue Coat Systems, Novellus Systems, Ernst & Young
• Experienced publically traded company CFO
Mike Everett Vice President, CTO
Joined Maxwell August 2002
• 3D Systems; Advanced Power & Energy Development
• Recognized authority on Advanced Energy Technology
Chris Humphrey* Vice President of Marketing & Engineering
• QLogic, Honeywell, Lantronix, Applied Microcircuits
• Executive Marketing, Engineering & Innovation
*Joined Maxwell September 2013
Dave Wojciechowski* Vice President of Americas Sales
*Joined Maxwell February 2014
• ABB/PowerOne, SMA Solar Technology, Emcore
• Global Sales Executive, Sales Engineering
Joined Maxwell January 2003
• Cresco Ti Systems, Silicon Graphics Inc
• Global Power Grid Expertise & General Management
Sacha Jenny Vice President & General Manager High Voltage
Earl Wiggins Vice President of Operations
Joined Maxwell August 2006
• Maxtor Corporation, Quantum Corporation
• Global High Volume Manufacturing & Quality
Dr. Franz Fink* President & CEO
*Joined Maxwell May 2014
• Gennum, Freescale Semiconductor, Motorola
• High Tech Growth CEO
17
Balanced Small Cap Growth Story
Balanced and Global Solid Financials Large Markets
Multiple Growth Drivers Fast Growing Diversified
Ultracapacitor Company
Strong Foundation Today Positioned for Profitable Growth
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