zbb energy corporation presentation november 2008 compressed

Example Presentation April 2008

Investor Presentation

November 2008

ZBB ENERGY CORPORATION

This presentation may contain “forward looking statements” which are made pursuant

to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In

some cases you can identify those so-called forward looking statements by words such

as may, will, should, expects, plans, targets, anticipates, believes, estimates, predicts,

potential, or continue, or the negative of those words and other comparable words.

These forward looking statements are subject to risks and uncertainties, product tests,

commercialization risks, availability of financing, and results of financing efforts, that

could cause actual results to differ materially from historical results or those

anticipated.

Forward Looking Statement

anticipated.

Further information regarding these and other risks is detailed from time to time in the

Company’s filings with the Securities and Exchange Commission.

We assume no obligation to update or alter our forward looking statements in this

presentation or in any periodic report, whether as a result of new information, future

events, or otherwise, except as otherwise required by applicable federal securities

laws.

ZBB ENERGY CORPORATION ZBBZBB

ZBB Snapshot

Our energy storage solutions address issues related to

grid stability and renewable energy intermittency.

o Distributed storage of electrical energy during off peak

periods.

� Re-supply on high demand providing grid reliability and

economic benefits.

To become the leader in large capacity energy storage solutions


economic benefits.

o Smoothing / shifting intermittent renewable energy

generation.

� Controlled generation, grid stability and optimal use

o Enabling energy independence and RAPS

o Green back up power and power quality.

ZBB ‘s technology fits hand-in-hand with alternative

energy growth and deployment.

ZBB Investment Considerations

Superior Technology 1ZBB’s storage solution products offers efficient and cost-effective technology that addresses key constraint and consistency issues

Growing Sales PipelineGrowing Sales Pipeline 22Ramping sales and marketing effort resulting in multitude of potential projects

Alternative Energy FocusAlternative Energy Focus 33Products address alternative energy intermittency and


Alternative Energy FocusAlternative Energy Focus 33Products address alternative energy intermittency and efficiency issues.

Intellectual PropertyIntellectual Property 44Company has 20+ patents that protect all aspects of the product and technology

Solid Financial PositionSolid Financial Position 55With approximately $8.0 million in cash and no debt, ZBB’s balance sheet is funded for growth

Alternative Energy Growth Projections

Increased attention and investment dollars will provide growth to alternative sources of

power

925

2365

7.3

6.4

24%

34%

Renewables*

Nuclear

22%

Drivers of Growth

•GHG Emissions

•MRET’s

•Energy Independence


383 313

14002095

1179

1352367

925

1024

2006 2030

1.0 0.7

7.3

11.6

3.5

3.92.6

3.3

2006 2030

Capacity(Gigawatts)

Output(Gigawatt-Hours)

*Includes hydroelectric, solar, wind, geothermal, biomass

24%

Natural Gas

Coal

Oil

19%•Energy Security

•Archaic T&D Infrastructure

Factors to consider

•Oil & gas price volatility

•Social Awareness

•Utilities - Tax credits

Production versus Consumption

Significant “loss” of energy supports the requirement for efficiency through energy

storage capabilities.

0.003

0.004

pe

r ye

ar

Total Production Versus Consumption

of Alternative Energy Resources


Energy from Utility0

0.001

0.002

2006 2010 2015 2020 2025 2030

Hydropower Biomass Other Renewable Energy Consumption

kW

h p

er

yea

r

Source: Energy Information Administration / Annual Energy Outlook 2008

Product Overview

ZESS (“Zinc Energy Storage System ”) – a large capacity regenerative fuel cell storage, plug and

play product

� Modular systems of 50kWh or 500kWh built

from 50kWh modules

� Flow-based system with electrolyte stored

in external tanks

� Deep discharge


� Deep discharge

� 20 + years product life

� Easily transportable

� Operates quietly at ambient temperature

� Environmentally friendly

� Winner of the Frost & Sullivan Large

Capacity Electricity Storage Innovation

Award

Standard Module ZESS 50

ZESS 500

Storage Technology Comparisons

ZESS technology offers multi-hour energy storage with a clean, deep-discharge, energy

neutral, compartmentalized system

• Improved energy density

• Deep discharge

• Superior cycle life

• Wider operating temperature range

Zinc-Bromide Regenerative fuel cell battery using an electrolyte system. During charge,

metallic zinc is plated from the electrolyte solution onto the negative electrode

surfaces in the cell stacks. During discharge the metallic zinc dissolves in the

electrolyte and is able to be plated again. Capable of full discharge (100% of

stored energy) without damage.

Sodium Sulfur (NaS) Consists of molten liquid sulphur at the positive electrode and molten liquid

sodium at the negative electrode, separated by a solid beta alumina ceramic

electrolyte. Kept at high temperatures above 300o C to allow the process to

occur. It is used for power quality and peak shaving applications. It has also

demonstrated more than 20 MW, with stored energy suitable for eight hours of

daily peak shaving with 89% efficiency.


• Wider operating temperature range

• Modularity

• Low Maintenance

• Reliability

• Cost

daily peak shaving with 89% efficiency.

Vanadium Redox (VRB) Flow battery that stores energy by employing vanadium redox couples and is

stored in sulphuric acid solutions. Storage of up to 500 kW for 10 hours, or 5

MWh. Net efficiency is about 70%, and is heavy and large-scaled. It has been

installed by Sumitomo Electric in Japan and by Vantek in South Africa.

Pumped Hydro Storage Widely used but characterized by long construction times and high capital

expenditures. Used for water reservoirs. Water is pumped from a lower

reservoir to an upper reservoir during off peak times, and then reversed to

generate electricity.

CAES A peaking gas turbine power plant using compressed air stored in underground

caverns inside salt rocks.

Lead Acid Suitability for energy management is very limited in applications that require

deep discharge, long life cycle and longer term energy storage. The base

components (lead and sulfuric acid) are neither desirable to handle and recycle

or to have installed in a facility without more extensive infrastructure and

precautions.

Manufacturing Capabilities

� Increased production capacity:

� 8MWh 12/2007

� 30MWh 12/2008

� 48MWh 12/2009

� 72MWh 12/2010

Milwaukee, WI

Headquarters and

manufacturing

ZBB has a proven, cost-effective platform for the manufacturing of the ZESS units


� Company owned 75,000sq ft headquarters

and manufacturing facility

� Manufacturing capacity currently

expanding to 50 x ZESS 50 modules per

month

� 32 full time employees in corporate and

manufacturing operations

� 7 full-time engineers located in Perth R&D

operations

manufacturing

facilities

Perth, Australia

Research &

Development

Multiple Market Applications

Electric Utilities Renewable Energy Industrial


� Implement peak shaving

� Manage cost efficiency

� Reduce grid vulnerability

� Reduce capital infrastructure costs

Source: BCC Research

� Store and re-supply generated power during high-demand periods

� Smooth power delivery from the generator to the grid

Source: Electricity Storage Association Source: Electricity Storage Association

� Implement smart metering to use grid-power when cost efficient to do so

� Reduce CO2 emission

Source: Electricity Storage Association

Current and Potential Projects

Ramping sales and marketing efforts resulting in multitude of potential projects

Synergy Power Corporation


Zest Energy

Electric Utilities

� North America – 32.8MWh

� Europe – 2.05MWh

� Australia – 1 MWh

� Africa – Nil

35.85MWh

Renewable Energy


� Europe - .5MWh

� Australia – 2.0MWh

� Africa – 18.6MWh

115.65MWh

Commercial / Industrial


� Europe – Nil

� Australia – Nil

� Africa - Nil

28.6MWh

ZBB is a partner with Envision Solar as part of a renewable energy initiative by Envision

Solar, to provide a reliable source of electricity for remote locations with a complete,

modularized solution

∙ 32 kW Photovoltaic System

∙ ZESS 50 storage system

∙ Water pump and purification system

Client Case Study: Solar Project - LifeVillageTM


∙ Water pump and purification system

∙ Six modular buildings totaling 3,000 square

feet (279 square meters) of sheltered floor

area which can be configured to meet a variety

of needs

ZBB and Eaton Corporation collaborate for advances in product, sales and marketing,

services and facilities .

� Renewable energy and product development

� WEIF Grant (co-share $229k grant from the State of Wisconsin to develop power

conversion and energy storage system that will be compatible with both grid and

solar power)

� ZESS 50 (3)

� System design and deployment

� Sales and marketing with new and existing lines

Client Case Study: Eaton Corporation


� Sales and marketing with new and existing lines

� Solar and wind energy market

� Commercial and industrial

� Utility

� Eaton EESS

� Studies through turn-key

� Energy Storage solutions

� Facilities

� Eaton Corporation – Nationwide offices

� ZBB Energy – Wisconsin only

Company Milestones

After start up

period, acquired

Johnson

Controls zinc

bromine

technology.

Completed all

additional R&D

and beta

testing.

Over 20 patents held and patent applications filed More than $60 million invested to date.

Contract with

FutureHouse

USA to provide

ZESS 50

Distribution

Agreement

with New Age

Energy, Inc &

ZEST Energy

Pty, Ltd

Hosts Energy

Forum with

Governor

Richardson &

Governor Doyle

to discuss

alternative

energy solutions


1994 1998 2004 2007 2008

Formed ZBB

Energy and

moved

Headquarters to

U.S.

Raised $20

million via

IPO in June

2007.

Provides Energy

Storage for

Solar Power

Project with

Envision Solar

Co-Share State of

Wisconsin Clean

Energy Fund

Grant with Eaton

Corporation

Energy storage today represents only a fraction of the aggregate valuations of solar and wind public companies. Market has not connected the interplay of storage and alternative energy, providing potential for significant upside.

Energy Storage Valuation vs. Solar and Wind

$27.0 bENERGY

STORAGE

ZBB, VLNC,

AXPW.OB, ALTI,

BCON, HEV, XIDE,

HPJ, ENS, ABAT,

CBAK, CHP, ULBI,

Aggregate Market Capitalization


$2.8

$7.0

Energy

Storage

Wind Solar

b

b

CBAK, CHP, ULBI,

MXWL

WIND RPW, BWEN, CWP,

BBW, WNEA, GES,

HSN, NDX

EXCLUDES: GE, SIE,

VWS

SOLAR SPWRA, ESLR, ENER,

FSLR, STP, WFR,

JASO, LDK, CSIQ

Valuation vs. Peer Group

ZBB Energy

Trading Statistics of Comparable Companies

(In $ millions, except per share data) Stock Revenue Enterprise Value / Price /

Price 52 Week % of 52 Market Enterprise Growth Book Value

Company (a) Ticker 10/15/08 High Low Week High Cap (b) Value (c) Rate 2Yr LTM 2008E 2009E Q2 CY08

VRB Power Systems Inc. VRB 0.03$ 0.34$ 0.03$ 8.8% 4.9$ 0.9$ 128.1% 2.3x 1.2x 0.0x 0.6x

Axion Power International Inc. AXPW 1.05$ 2.74 1.01 38.3% 27.7 27.6 88.9% 43.9x NA NA 1.6x

Cougar Energy Limited CXY 0.08$ 0.26 0.04 31.2% 42.0 32.9 53.6% 215.0x NA NA 2.5x

Plug Power Inc. PLUG 0.93$ 4.75 0.64 19.6% 82.0 (45.9) 25.0% NM NM -2.1x 0.6x

Capstone Turbine Corp. CPST 1.25$ 4.42 0.94 28.3% 190.1 157.5 11.2% 4.7x NA NA 3.8x

Advanced Battery Technologies Inc.ABAT 2.50$ 7.65 2.40 32.7% 131.4 110.4 112.0% 2.7x NA NA 2.6x

SatCon Technology Corp. SATC 1.72$ 3.51 1.15 49.0% 87.7 97.7 33.6% 1.4x 1.5x 1.0x 9.4x

Ballard Power Systems Inc. BLDP 2.43$ 5.94 1.94 40.9% 246.0 198.8 22.2% 3.0x 3.0x 2.3x 2.3x

EnerSys ENS 12.62$ 37.71 11.45 33.5% 626.6 1,029.2 27.9% 0.5x 0.5x 0.4x 2.1x

Energy Conversion Devices, Inc. ENER 37.78$ 83.33 20.47 45.3% 1,725.3 1,564.5 58.1% 6.1x 4.4x 2.6x 2.4x

Hong Kong Highpower Technology, Inc.HPJ 3.03$ 8.35 1.68 36.3% 41.1 54.9 0.0% 0.7x NA NA 3.0x

Exide Technologies XIDE 4.67$ 19.66 4.00 23.8% 351.7 951.5 17.4% 0.2x 0.2x 0.3x 1.0x

Revenues


ZBB Energy Corporation ZBB 1.88$ 4.54 1.35 41.4% 19.8 13.4 53.9% 10.4x NA NA 1.75x

Discount to Mean 5.2% 203.1% 51%

Discount to Adjusted Mean 5.2% -12.0% 51.3%

Mean 33.6% 48.2% 31.7x 15.1x 1.2x 2.7x

Median 34.9% 30.7% 2.7x 1.3x 0.6x 2.3x

Adjusted Mean (d) 33.6% 48.2% 9.2x 1.8x 0.7x 2.65x

High 49.0% 128.1% 44.0x 4.4x 5.7x 9.4x

Low 8.8% 0.0% 0.2x 0.2x -2.1x 0.6x

Source: Company filings and Capital IQ.

Note: Forecasted valuation ratios are based on calendar year figures.

NA: Not Available; NM: Not Meaningful.

(a) Data represent consolidated financial information and exclude non-recurring charges.

(b) Diluted equity value using the treasury stock method based on options outstanding.

(c) Represents Equity Value plus Total Debt, Total Preferred and Minority Interest less Cash and Investments in Unconsolidated Affiliates.

(d) Adjusted Mean excludes data for LTM EV/REV for CXY, ENS, HPJ and XIDE due to outlying multiples

Positioning during Economic Downturn

• Extension of the alternative energy tax credits will stimulate many of our

markets, including major utilities;

• Situational analysis of all aspects of business processes;

Balanced approach to be both fiscally conservative and

opportunistic during this time of economic uncertainty.


• Zero-based budget processes have been implemented;

• Marketing budget is mostly commissioned-upside

• Review of staff and salaries undertaken in past months

• Constant bank review where cash is managed

Strong Management Team

Robert ParryChief Executive Officer

• 25 years experience in large capacity storage industry• Held management positions with ZBB since its founding in 1982• International experience in corporate management, finance, technology and

acquisitions• CPA, Australia

Steven SeekerChief Operating Officer

Scott Scampini

• VP, International Sales & Operations, of Cooper Power Systems responsible for four international plants and a network of sales representatives and employees in over 75 countries for over 31 years

• Award winner from 2006 Astin-Polk International Standards Medal

• Price Waterhouse and BDO Siedman partners• 13 years CFO and Executive Vice President of MGS Manufacturing Group•


Peter Lex, Senior Chemical Engineer

Michael Hughes, Senior Electrical Engineer

Bjorn Jonshagen, Senior R&D Engineer

Note: 40+ employees in USA and Australia

Scott ScampiniChief Financial Officer

Kevin DennisVP Marketing & Sales

• 13 years CFO and Executive Vice President of MGS Manufacturing Group• CPA

• Senior member of management team with ABB, a multi-billion dollar company with worldwide operations

• Extensive marketing, sales and engineering expertise in utility and renewable energy markets worldwide

Board of Directors

Richard PayneDirector

• 26 years experience in corporate and commercial law• Director Agri Energy Ltd• Director Broome International Airport group of companies

William MundellChairman & Director

• Energy Advisor to Governor of California• Chairman of Intekea• Former - Chairman and CEO of Vidyah Corp and former Chairman of Trade, Inc • Former CEO of WEFA• Honorary professor at Tsinghau University in China and graduate of Carlton University in Canada and

Columbia University (MBA in Finance and Masters in International Economics and Public Finance)

Manfred BrinbaumDirector

• Former Executive of English Electric Corp. (wholly owned sub of GE of England)• 26 year Senior Officer of Westinghouse Electric Corp.• Management Consultant


Director • Director Broome International Airport group of companies

Robert ParryChief Executive Officer

• 25 years experience in large capacity storage industry• Held management positions with ZBB since its founding in 1982• International experience in corporate management, finance, technology and acquisitions• CPA, Australia

Marc MarottaSpecial Counsel to Board

of Directors

• Partner Foley & Lardner LLP• Former Secretary of the Dept of Admin - State of Wisconsin. Boards including; State of Wisconsin

Investment Board, the Board of University Hospitals and Clinics and the Wisconsin Center District Board.

• Graduate of Harvard Law School and Marquette University

Financial Data

AMEX: ZBB Public Float 6,927,864 66.0%

Stock Price: $3.85 Institutions1 3,192,064 30.3%

Market Cap: $40.5 Million Insiders 392,355 3.7%

Common Shares Outstanding 10,512,283 100%

Summary of Capitalization


Notes:1 Represents GLG Partners ownership2Debt represents mortgage on newly acquired Milwaukee facility and equipment3 R&D investment to date approximately $60mm

Fiscal Year End June 30 Revenues $1.3

Total Cash $8.5 Total Debt2 $2.05

Total Assets3 $15.5 Shareholders Equity $12.02

Select Financial Data at June 30, 2008(in millions)

ZBB - The Energy Storage Leader

“ZBB is a transition stage manufacturer of zinc bromide flow batteries and the

clear leader in the “hours of discharge time” product class.”-John Peterson, Seeking Alpha, Alternative Energy Storage and Blood in the Streets, dated October 13, 2008

“ZBB is a transition stage manufacturer of zinc bromide flow batteries and the

clear leader in the “hours of discharge time” product class.”-John Peterson, Seeking Alpha, Alternative Energy Storage and Blood in the Streets, dated October 13, 2008

"ZBB Energy Corporation [is] a leader in developing and producing technology that

increases energy efficiency, minimizes the impact on the environment and

maximizes the use of renewable energy.“

-Wisconsin Gov. Jim Doyle, Visit to ZBB Energy Corporation manufacturing facilities, dated October 3, 2008

"ZBB Energy Corporation [is] a leader in developing and producing technology that

increases energy efficiency, minimizes the impact on the environment and

maximizes the use of renewable energy.“




"Grid-scale storage is here now”

-Dr Ed Cazalet of MegaWatt Storage Farms, Electricity Storage Association's Annual Meeting in California, 2008

"No"No mattermatter whatwhat kindskinds ofof alternativealternative renewablerenewable energyenergy sourcessources areare developed,developed, theythey

cannotcannot bebe fullyfully utilizedutilized ifif there'sthere's nono wayway toto storestore thethe energyenergy theythey generategenerate forfor useuse

duringduring peakpeak--demanddemand hourshours.. ZBB'sZBB's electricalelectrical fuelfuel cellcell isis thethe answeranswer..““

-Michael Betsch, New Age Energy's CEO, August 2008


"Grid-scale storage is here now”

-Dr Ed Cazalet of MegaWatt Storage Farms, Electricity Storage Association's Annual Meeting in California, 2008

"No"No mattermatter whatwhat kindskinds ofof alternativealternative renewablerenewable energyenergy sourcessources areare developed,developed, theythey

cannotcannot bebe fullyfully utilizedutilized ifif there'sthere's nono wayway toto storestore thethe energyenergy theythey generategenerate forfor useuse

duringduring peakpeak--demanddemand hourshours.. ZBB'sZBB's electricalelectrical fuelfuel cellcell isis thethe answeranswer..““

-Michael Betsch, New Age Energy's CEO, August 2008

Example Presentation April 2008

Thank You

zbb energy corporation presentation november 2008 compressed

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