EX-99.1 2 hpev_ex991.htm INVESTOR PRESENTATION OF HPEV, INC. hpev_ex991.htm
Investor Presentation
March 2014

March 2014
Forward Looking Statements
This presentation contains information that is “forward-looking” in that it describes events and conditions HPEV, Inc.
reasonably expects to occur in the future. Expectations for the future performance of HPEV, Inc. are dependent upon
a number of factors, and there can be no assurance that HPEV, Inc. will achieve the results as contemplated herein.
Certain statements contained in this release using the terms “will”, “could”, “may”, “expects to”, “potential”,
“planned”, “expected”, “estimates”, “schedule”, “anticipates”, and other terms denoting future possibilities, are
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy
of these statements cannot be guaranteed as they are subject o a variety of risks, which are beyond HPEV, Inc.’s
ability to predict, or control and which may cause actual results to differ materially from the estimates contained
herein. Among these risks are those set forth in HPEV, Inc.’s Form 10-K and in reports subsequently filed with the
Securities and Exchange Commission, and in addition to the other risks and caveats included in this presentation. It is
important that each person reviewing this presentation understand the significant risks attendant to the operations of
HPEV, Inc.
Except as required by law, HPEV, Inc. disclaims any obligation to update any forward-looking statement contained

Company Snapshot
Recent Price:
$ 1.85
52-Week High/Low:
$ 2.00 - $ 0.23
Common Shares
48.7 million
30.1 million
Market Capitalization:
Enterprise Value:
$ 90 million
$ 90 million
Source: Capital IQ, company filings
(1)As of 9/30/2013
(2)Options 5M, Warrants 15.1M, 200 Convertible Preferred Shares that convert to 10M common
Industrial Engineering
Year Founded / Public:
2005 / 2011
Tampa, FL
8 full time - 45 contract
Insider Ownership:
Anton & Chia, LLP
Fiscal Year End:
December 31st
March 2014

Heat is the waste by-product of mechanical
energy - the ugly evidence of inefficiency
 The efficient removal of heat from equipment is a paramount challenge for manufacturers of motors,
 generators, and pumps, and many other types of mechanical equipment and products
  Excess heat results in lower power output for equipment such as motors & generators and
  Manufacturers must compensate for these thermal losses in their engineering by adding greater
 amounts of Active Material (the expensive part of the motor/generator: larger rotor/stator sizes,
 heavier gauge wiring and seals, etc.) when manufacturing, thereby increasing product costs
 Less Active Material used in manufacturing results in lower costs (better margins), and the
 engineering reality that smaller motors can put out more power (and potentially be sold for
 Worldwide environmental and efficiency mandates are being implemented in motors and generators
 in three steps: 2013, 2015, 2017(1)
(1) International Electrotechnical Commission’s IE3 standards and Minimum Efficiency Performance Standards (MEPS)
March 2014

The Solution
HPEV’s patented technology
removes heat better than the
current cooling methods: air
cooling or liquid cooling
 HPEV’s disruptive thermal dispersion technology transfers heat via
 proprietary patented heat pipe arrays with unique capabilities
 HPEV’s heat pipe arrays and systems allow heat pipes to move heat
 in ANY direction (even against gravity) and require little or no
  Heat pipes can be added to almost any electric motor or generator
 resulting in a smaller, more efficient, higher output machine that runs
 cooler with a longer operating lifespan and lower maintenance costs
  Independent third-party & customer testing confirms motors and
 generators operating with HPEV’s technology have 25-40% higher
 “power density” or horsepower output
  Higher power density results in up to 30% lower manufacturing costs as smaller motors can put out the
 same amount of power and manufacturers can use standard raw materials (wire, insulation, etc.) instead
 of costly exotic raw materials
March 2014

Heat Pipes
 A heat pipe is a heat-transfer device that, at a basic level, consists of a bifurcated hollow metal pipe
 filled with water that moves heat from one end to the other via evaporation and condensation within
 a closed system
 Heat pipes have been around since the late 1800’s, and beginning in the late 1970’s and 1980’s
 engineers began applying the technology to industrial applications
 HPEV’s intellectual property consists of application patents and patents-pending that, in conjunction
 with unmatched engineering expertise, allows OEMs to implement HPEV’s designs into their
 existing manufacturing systems and ensure manufacturability down the production line
March 2014

Intellectual Property
 While heat pipe technology has been around for over 100 years, HPEV controls a patent portfolio
 that leverages a unique ability to increase power density and lower manufacturing costs in the motor
 and generator industry, among additional markets
 Five U.S. utility patents have been issued
 More than 20 Patent Cooperation Treaty (PCT) patents are pending or in the application
 Patent Attorney: Polster, Lieder, Woodruff & Lucchesi, L.C.
March 2014

Technology Applications
Thermal Dispersion
 Electric Motors
 Submersible Pumps
 Industrial Pumps
Mobile Generation
 Retrofit any Class 2-8
 “Ultimate Work Truck”
 Eliminates the need for
 expensive, tow-behind
 mobile generators
Future Applications
 Hybrid Conversion
 Vehicle Components
 Super Chargers
 Power Systems
March 2014

Thermal Dispersion
HPEV’s Thermal Dispersion technology is poised to be the most disruptive and ONLY
technology (resulting in more than 5% cost savings) introduced to the industrial
motor/generator industry since the introduction of the frameless DC motor in the 1950s(1)
(1) CEO Tim Hassett’s father, Jack Hassett, invented the frameless DC motor
Benefits to End User
Benefits to Manufacturer
 Easy integration on existing production lines
 More output from the same package or the
 same output from a smaller package
 Increased standardization of product line as a
 result of a reduction in product modifications
 Scalable application from 1 to 30,000hp
 Better reliability
 Lower maintenance costs
 Increased effective lifespan of motor
 Greater efficiency, therefore lower energy
 Lower purchase cost (provided manufacturer
 passes savings along to the end user
 HPEV’s patented heat pipe arrays provide a unique solution, the best cooling available at the lowest
 cost. The technology is unrivaled by air cooling, liquid cooling, and heat exchangers
 The technology can be added to almost any electric motor or generator, or motor driven
 Allows motors to run cooler, have longer operating lifespan, and have lower maintenance costs
March 2014

ESSCO Testing - “It’s a Real Game Changer”
ESSCO Pumps and Controls, an industry leader of custom pump solutions since 1955, completed its
final round of testing during November 2013 with stellar results
John Ivins, ESSCO President:
  “Honestly, I’m amazed with the results! This is a significant innovation in the pump industry and the biggest
 improvement in pumps in more than 50 years.”
  “…with HPEV’s technology, we now have a solution for a huge industry problem, solving one of its Achilles’ heels. By
 removing heat in this way, we dramatically reduce maintenance costs and time loss while improving pump output and
 flow as well. It’s a real game changer.”
 Testing Measured the heat tolerance of a Grundfos/Yeomans Chicago motor frame
 with Nidec wound stator/rotor (
Active Material) inside on a dry-pit submersible
  Current dry-pit submersible pumps are cooled by the effluent (what is being pumped) and
 they clog regularly resulting in having to be taken out of service often with
 high maintenance costs.
  Current dry-pit pump motors are rated to run out of water for 15 minutes before heat
 causes system shutdown.
  HPEV’s technology was integrated directly into the Nidec motor and the pump no longer
 needs to be cooled by the effluent -
no more clogging or maintenance
 Results confirmed an increase of more than 200% horsepower output, and
 the pump ran for more than six hours of continuous operation (out of water /
 not submersed) at or above full power without reaching critical temperatures
March 2014

Illustrative Cost Savings Example
Lower manufacturing costs and higher horsepower output favorably move both the
revenue and cost levers for motor manufacturers (HPEV’s customers)
Before: Large
hood on top of the
motor is a heat
After: HPEV’s
eliminates the
need for the heat
exchanger; lower
cost and smaller
Air Cooled Motor
HPEV Improved Motor
Output (Horsepower)
Retail Price
Gross Profit
Electric Motor - Customer Benefits Model
March 2014

Incumbent Cooling Technology
Motor and Generator Cooling Options: HPEV wins in EVERY category and reduces
manufacturing costs by more than 25%
Fan Cooled
Liquid Cooled
Heat Exchanger
Heat Transfer
Required Accessories
Blower/Fan and
Pump and Piping
Pump, Radiator, Fan,
Blower, and Piping
Low (dust particles
and filters required)
Low (fouling)
(1) Watts per squared meter kelvin
March 2014

Mobile Generation
Mobile Generation (MG) systems transform any Class 2-8 truck into a mobile generator
 Patent-pending gearing system uses the truck’s engine, regardless of type
 (natural gas, diesel, gas, fuel cell, etc.), to power an on-board generator
 that delivers up to
400kw of electric power
 Eliminates the need for a tow-behind generator for a work site, saving
 a differential of 1/5th the weight and half the cost versus the tow-
 behind alternative
 Used to power any electric equipment including common devices such as
 compressors, welders, and even bucket truck arms; also serves as an
 emergency power backup and can be plugged right into the Grid
 Adaptable to any type of vehicle/engine and does not affect truck
 The secret to making all of this work: HPEV’s patent-pending gearing
 system and thermal dispersion technology that provides more power
 from a smaller unit and allows it to draw the power from the truck
 Technology can be retrofitted into existing work trucks or customers can
 purchase the Ultimate Work Truck which is a new design/build model
 Massive addressable market beginning with utility fleets and other trades
March 2014

Estimated Market Size
Addressable markets estimated at over $90 billion, growing 3-5% annually; management
has relationships with nearly all the major industry players from the executive suite to
engineering to manufacturing
 The addressable worldwide motor and generator markets are estimated to be ~$60 billion
Big-8: 80-85%
 We estimate the large industrial pump market in the United States to be ~$30 billion
 HPEV is working with several of the leading pump manufacturers to expeditiously get product to
 the market; manufacturers expect swift market adoption
  The “Big-8” control between 80-85% of the market
  Management has relationships at each of the Big-8
 at both the executive and manufacturing levels
March 2014

Revenue Model
HPEV is an intellectual property and engineering company - not a manufacturer
License Fees
 Upfront license fee to use the technology
 (1-3 year term)
 Expected motor/generator license fee $1-
 10 million depending on factors such as
 exclusivity, sales minimums, products
 that use the technology and duration
 Royalties on revenue from sales of
 underlying equipment = ~3% of gross
 Royalties from Thermacore on each sale
 for the use of HPEV’s IP
In some cases, HPEV will consider JVs with customers
and share the profit margin with zero cash outlay from
Marketing Strategy
Third-Party Validation
 HPEV has third-party validation reports from
 multiple industry leading certification firms
 Three of the Big-8 have done internal validation
 Acceleration of Big-8 implementation schedule
 Existing relationships, strategic alliances, trade
 journals, and competitive demand
 In commercialization phase with 2 and design
 phase of discussions with 4 of the Big-8
 When one is using the technology in the
 marketplace, the others will all need the
March 2014

Target Customers
HPEV’s optimal customer is a motor/generator manufacturer producing
units between 1hp and 30,000hp
 ESSCO Pumps & Controls
 WI Technologies
 Emerson Corp. (NYSE: EMR)
 Nidec Corp. (NYSE: NJ)
 Flygt (Sub of Xylem - NYSE: XYL)
 WEG Motors (Brazil)
 GE Power Conversion (NYSE: GE)
 Siemens (NYSE: SI)
 Regal Beloit (NYSE: RBC)
 TECO-Westinghouse Motor Company
 Thermacore - Leader in Heat Exchangers
  Fabricate HPEV technology and sell
 directly to the OEM
  HPEV’s “salesforce” to the 200+
 motor/generator OEMs that are not
 part of the “Big-8”
March 2014

Tim Hassett
CEO, Chairman & Co-
30+ years experience managing and growing mid-sized manufacturing firms: GE, WaveCrest, Hawk Motors,
Rockwell Automation
Turned around two divisions for Jack Welch at GE
WaveCrest from $0 to $30M in revenues in 18 months (with Mark)
Lemo from $32 to $75M in revenue and grew net income 22x in 4 years (with Mark)
Mars Rover drive train co-designer
Mark Hodowanec
20+ years of engineering & operations expertise: more than 30 publications & numerous patents
Led new product innovation at Reliance Electric
Engineering Manager at Siemens Energy and Automation
Led Emerson to API approval - after Emerson’s efforts had failed for 11 years
Mars Rover drive train co-designer
Ted Banzhaf
20+ years experience in growing public companies in all facets of finance, growth strategies, and management
 Expertise in maximization of shareholder value and maturing small companies into larger organizations
 SpatiaLight Technologies (NASDAQ:HDTV), CE Unterburg Towbin, Raymond James
Quentin Ponder
Vice Chairman
50+ years experience in management: Baldor Electric Motors, Franklin Electric Motors, GE
 Noted in the book “World Class Manufacturing: The Next Decade” as one of the 5 best executives for
 manufacturing improvement pathways in the modern industrial era
 Coined the term “Flex Flow Manufacturing” based on his revolutionary manufacturing management
Experienced management team with a history of bringing technology to market
March 2014

Select Recent News
2/20/2014: “Energy Efficiency Innovator HPEV, Inc. Reveals Its Burgeoning Patent Portfolio”
Announced it has received five U.S. utility patents and has more than 20 global PCT patents either pending or in the application process
2/20/2014: “Energy Efficiency Innovator HPEV, Inc. Brings Co-Founder Mark Hodowanec on as Chief Technology Officer”
A significant milestone for the Company as Mark will play a key role in driving customer relationships, shaping technology strategy, and further
developing the Company’s patent portfolio
Mark is an industry veteran having previously served as head of engineering at Curtiss-Wright, Director of Operations at WaveCrest
Laboratories, Engineering Manager at Siemens Energy and Automation, and led new product innovation at Reliance Electric
1/16/2014: “HPEV Announces New Strategic Advisory Board Led by Recently Retired Emerson Electric Heavyweight”
Dick Schul is a 43 year motor/generator veteran and industry insider who recently retired from Emerson Electric as Group Vice President of
Emerson Climate Technologies
Dick will provide valuable perspective and recommendations in the areas of product guidance, customer development, and sales and territory
12/17/2013: “Energy Efficiency Innovator HPEV, Inc. Shines in Critical Commercialization Test”
Mohler Technology, Inc. completed tests for a generator for a yet to be named customer in which power density increased between 25-35%
while all industry certification standards were met
11/25/2013: “Energy Efficiency Innovator HPEV, Inc. Exceeds Expectations in Third-Party Commercialization Tests”
Announced ESSCO Pumps & Controls completed its final round of commercialization tests for a revolutionary line of dry-pit submersible
pumps for the water and wastewater industry
Current standard is for pumps to run out of water (not submersed) for up to 15 minutes without reaching critical temperatures requiring a
shutdown; the HPEV unit ran continuously for over 2 hours without reaching critical temperatures
March 2014

Investment Considerations
 Patented, disruptive technology is being
 commercialized NOW by several of the
 The immediate addressable market is
 approximately $90 billion; a 3% royalty is
 an extraordinary earnings opportunity
 Improves power output by ~25%, reduces
 manufacturing costs by ~25%, and helps
 manufacturers meet increasingly stringent
 environmental and efficiency mandates
 Management team is experienced with
 bringing technologies to market and has
 extensive relationships with industry
 Licensing/royalty revenue model to
 provide significant operating leverage
March 2014

Contact Information
Thank you for your interest
Ted Banzhaf
March 2014