#1Plug Power Investor Presentation June 2013 plug power The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. Copyright 2013 by Plug Power Inc. Today's Fuel Cells for proven, reliable power.#2Today's Fuel Cells for proven, reliable power. plug power This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders and shipments for 2011. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond our control and that may cause our actual results to differ materially from the expectations in our forward-looking statements including, but not limited to: the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that the additional capital we expect we will need to raise to fund our operations beyond the first quarter of 2012 may not be available; 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 our continued failure to comply with NASDAQ's listing standards may severely limit our ability to raise additional capital; 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 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 GenDrive systems; 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 improve system reliability for our GenDrive 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; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011, and the reports we file from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events. 2#3Today's Fuel Cells for proven, reliable power. We Are Plug Power Leader in development and production of clean, commercial energy solutions for the material handling industry • Headquarters in Latham, New York with over 140 employees Founded in June 1997 • World class manufacturing facility in NY • 152 issued patents Over 4,000 units in the field with over 10 M hours runtime plug power plugs ever GenDrive 3#4Today's Fuel Cells for proven, reliable power. plug power Transforming Plug Power Into a Sustainable Business GenDrive Developing technology Enhancing key customer relationships Executing our business plan and expanding into adjacent markets Product Customers Sales Focus expanded 2008 1 beta fuel cell Blanket focus across multiple industries Sales teams in multiple industries Demonstrating products in multiple applications 2013 Portfolio of 3 product families Large distribution and manufacturing centers An engaged nationwide team, with HYpulsion partnership in Europe Adding new and growing existing customers while expanding into adjacent markets 4#5Today's Fuel Cells for proven, reliable power. Plug Power: Poised for Profitability Today's focus: material handling market plug power GenDrive • AIR LIQUIDE Λ Endorsed via an investment by Air Liquide, a leading industrial gas firm • Significant and new customers are buying • Quality problems behind us. • EBITDA profitability within reach TM Success in materials transport is generating interest (and development funds) from adjacent markets This is the first step toward Plug Power's long-term goal to displace lead-acid batteries and diesel engines in a broad array of applications. 5#6Today's Fuel Cells for proven, reliable power. plug power Plug Power's Focus: Material Handling Industry GenDrive Products GenDrive™ Class 1 Suite Sit-down Lift Trucks GenDrive™ Class 3 Suite Rider Pallet Trucks GenDrive™ Class 2 Suite Stand-up Reach Trucks GenDrive Operational Benefits, Large Market Opportunity and Path to Profitability ■Increased Productivity ■Lower Operational Costs Additional Commercial Space Zero Emissions ■Large Market Opportunity Early Traction with Large Customers Focused Strategy to Drive Revenue Growth And Profitability CO 6#7Today's Fuel Cells for proven, reliable power. plug power Lowering the Cost of Hydrogen Infrastructure ... Large On-site Liquid Storage On-site Generation Small Retail Solutions GenDrive NUVERA POWERTAP Hydrogen Generation ... is crucial to expand the Material Handling Market plugpow plug power 7#8Today's Fuel Cells for proven, reliable power. plug power Expanding the Opportunity in the $20B Material Handling Industry GenDrive North American shipments have been isolated to 40% of the total fork truck population Segment Experience Hydrogen Solutions Market Size QTY* Market Size USD** North America 6 Years Large (1 Year onsite generation) Delivery with on-site liquefied storage Large on-site generation w/ gaseous storage 15% (~180 K) Delivery with on-site liquefied or 6 Years Medium (1 Year onsite generation) gaseous storage 25% (~300 K) • Small on-site generation w/ gaseous storage $ 4.2 Billion Delivery with gaseous storage 1-3 Years Small Small on-site generation w/gaseous storage 20% (~240 K) Retail Under development Europe All 1 Year Japan & All N/A China ROW All N/A Under development 40% (~480 K) • AL advanced hydrogen fueling stations ~1,700 K $5.7 Billion Under review N/A $7.8 Billion Under review N/A $2.1 Billion Low-cost Hydrogen Infrastructure is Crucial to Expansion * & ** Sources: Analysis of Industrial Truck Association data, JVIA, and ongoing management discussions with OEM's 8#9Today's Fuel Cells for proven, reliable power. Customer Base Continues to Grow plug power GenDrive Good things • 44 total site deployments with 24 Walmart Sysco different customers Coca-Cola P&G 29 brownfield sites • 15 greenfield sites ACE LOWE'S Hardware • More than 4,000 units shipped ~8,000 fills per day by customer More than 4,600 kg of H2 dispensed per day carter's Mercedes-Benz M Kroger Associated Wholesale Grocers IKEA STIHL 9#10Note: Today's Fuel Cells for proven, reliable power. plug power GenDrive GenDrive Value Proposition Key benefits of GenDrive implementation · Increased productivity up to 15% • Greenfield IRR Payback < 1 year and ~$3 million in savings Reduced carbon footprint up to 80% $12 Fuel Cell Labor Savings Compared to Lead-Acid Batteries Cumulative Savings in un in $2 $6 $4 $10 $8 $0 1 2 3 4 5 6 8 9 10 Cumulative Labor Savings per Year Savings calculations based on brownfield and does not include benefits to fork trucks from constant voltage or reduced workforce from lower fleet size. Annual savings conditional to site labor rate, shifts per day, electricity prices, battery prices and battery room expenses 10#11• . Today's Fuel Cells for proven, reliable power. Customer Success in Food Second largest food retailer in North America First deployment in Compton, CA 174 GenDrive units Kroger operates ~30 large distribution centers nationwide Distribution center conditions include freezer environments reaching -25 degrees F New sites being considered are estimated to reduce Kroger's carbon footprint from fork trucks by 31%, on average plug power Kroger GenDrive O.P.P. GELFUT --------- -------------17-11 11#12Today's Fuel Cells for proven, reliable power. Customer Success in Manufacturing • • • Largest consumer product company in the world Deployed in California, Louisiana, Pennsylvania and North Carolina 342 GenDrive units, total P&G operates 34 plants in the US and close to 100 plants world-wide Modified standard products for P&G fleet strengthening the relationship for future sales In 2010 announced sustainability initiative of powering plants with 100% renewable energy plug power P&G GenDrive 12#13Today's Fuel Cells for proven, reliable power. Customer Success in Retail . • • • Largest retailer and employer in the world Deployed in Ohio, Alberta and Ontario 509 GenDrive units, total Walmart operates 100+ distribution centers with close to 20,000 forklift trucks and approximately 15,000 units in stores in North America Plug Power designed and built hydrogen piping and dispensing system to generate revenue from H2 Expected greenhouse gas reduction (WCHI facility) up to 72% compared to batteries. charged from grid plug power Walmart crown GenDrive 13#14Today's Fuel Cells for proven, reliable power. plug power GenDrive HyPulsion JV is Bearing Fruit . • HyPulsion, Joint Venture between Plug Power and Air Liquide, has completed one year of business and product development activities Foundation is laid - will ship product in 2013 Market opportunity greater than North America • 9 CE certified products with multiple configurations available for deployment in 2013 Collaboration projects in place with 8 fork lift OEMs Includes Jungheinrich, Toyota Material Handling, Linde Λ AIR LIQUIDE HYpulsion Faero Ishuds Shethad Iskuds NORWAY DENMARK SUNITED IRELAND KINGDOM SPAIN PORTUAL NETHERLANDS BELGIUM SWEDEN FINLAND ESTONIA LATVIA LITHUANIA BELARUS UKRAINE POLAND GERMANY CZECH REPUBLIC SLOVAKIA MOLDOVA FRANCE SWITZERLAND HUNGARY ROMANIA SERBIA KOSOVO BULGARIA SAUSTRIA SLOVENIA CROATIA BOSNIA ITALY MONTENEGRO ALBANIA MACEDONIA GREECE Mariamm TURKEY RUSS 14#15Today's Fuel Cells for proven, reliable power. plug power GenDrive Plug Power Operations 500+ years combined experience in fuel cell system product development, manufacturing, and service Engineering • Comprehensive knowledge at both the fuel cell stack and system level Flexible and responsive to meet specific customer needs Structured problem solving process for complex technical challenges Manufacturing • . 50K FT2 facility . 10K unit capacity Lean manufacturing assembly and test process Service • On-site service technician coverage Consigned service parts East, West, Central Regional Service Management 15#16Today's Fuel Cells for proven, reliable power. Plug Financials plug power 2013 2012 Product and Service Business Product and Service Revenue $ 35,300 $ 24,676 Cost of Product and Service Revenue $ 36,700 $ 37,657 Gross margin percentage -4% -53% EBITDAS $ (14,000) $ (30,293) Note: Figures in USD millions 16#17Today's Fuel Cells for proven, reliable power. Annual Product Business Break Even plug power GenDrive Product Revenue $ 70,000,000 $ 58,600,000 $ 34,000,000 Material Cost $ 46,900,000 $ 39,262,000 $ 22,780,000 Production Labor Fully Burdened $ 4,850,000 $ 4,850,000 $ 4,850,000 All other Expenses $ 14,700,000 $ 14,472,000 $ 13,980,000 EBITDAS $ 3,550,000 $ 16,000 $ (7,610,000) Assumes 67% Material Cost to Product Cost Targeted for Q2/Q3 2014 for a Breakeven EBITDAS Quarter 17#18Today's Fuel Cells for proven, reliable power. Product and Service Cost Roadmap Product • We continue delivering cost reductions • Costs are falling in line • Averaging ~10% year over year • reductions ($ / unit) from 2010 - 14 Higher volumes, sourcing strategies, and manufacturing improvements driving progress Service We continue enhancing our service Averaging ~25% year over year reductions ($/ unit) 2010-14 Key component performance improvements, improved supplier relationships, and higher purchasing volumes are turning the business around $ / Unit / Quarter Note: * assumed unit growth is used to calculate reductions in a $ / unit metric and is not meant to as sales guidance. $ / Unit $35,000 $30,000 $25,000 plug power Weighted Average Cost: HP and LP Products $20,000 $15,000 $10,000 $5,000 $0 2010 2014 Service Cost vs Growing Installed Base $1,200 10,000 9,000 $1,000 8,000 7,000 $800 6,000 $600 5,000 4,000 $400 3,000 2,000 $200 1,000 50 $0 0 2010 2014 Qtrly Cost/Unit ―# Units 18 # of Units#19Today's Fuel Cells for proven, reliable power. plug power GenDrive Future Market Expansion . • Targeting adjacent markets that have the same dynamics as materials handling · • • Ground Support Equipment - 60,000 units deployed Big Rig Transportation Refrigeration Units - 290,000 units deployed Range extenders for heavy-duty electric vehicles President Obama target: 1M electric vehicles by 2015 Significant development funds provided by external agencies DOE development grant for Charlatte CTE5 BTTS - $2.5 million New York SERDA - $250K for TRUS Planned application for DOE RFP regarding range extenders CHURLATTE Charlatte BTT Transportation Refrigeration Unit FedEx Express Fedex Heavy Duty Electric Car 19#20Today's Fuel Cells for proven, reliable power. Summary • • Plug Power is the premier system integrator for PEM fuel cells • • • • Materials handling first mover advantage - 90% market share; HyPulsion JV gives us same advantage in Europe Air Liquide now a key strategic investor and joined board of directors Compelling customer experience with Fortune 500 client list - 4,000 units to 23 firms Growing opportunities in adjacent markets with outside entities committing development funds Momentum in lower-cost Hydrogen solutions is rapidly expanding our opportunities Material handling success is the first step to our goal of profitably displacing diesel engines and batteries with fuel cells in a wide array of applications ale 20 ale Yale Vale plug power GenDrive#21POWERAHEAD plug power 968 Albany Shaker Road Latham, New York 12110 518.782.7700 www.plugpower.com