Hybrid Vehicle Electrification

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Helping Great Companies Grow

Overview

“ODYNE” represents the combination of “O” for Optimal – “DYNE” for force

  • Odyne Systems, LLC (“Odyne”) sells advanced electrification solutions for vehicles
    • proprietary zero-emissions hybrid technology delivers fuel reduction up to 50%; reduction in NOx up to 96%; quiet stationary operations; better acceleration; lower engine maintenance
    • robust technology readily adapted to specific vehicle types – work trucks, recreational vehicles (RVs), refrigerated trucks, school buses, street sweepers and military vehicles
  • Odyne’s potential market captures over 80% of global electric drive truck sales – HEV (Hybrid Electric Vehicle), PHEV (Plug-In Hybrid Electric Vehicle)
    • systems reduce fleet operating costs, reduce emissions, increase productivity, improve worker safety and contribute to sustainability initiatives
    • big truck manufacturers are focused on limited market for fully electric truck sales
  • Seeking $8 million in growth capital (Phase 1 -$5.4 million; Phase 2 – $2.6 million) to enhance the technology, hire additional sales and service people and expand production
    • solid revenue growth: 2020E up 145%
  • Allison Transmission, the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty vehicles, owns a non-controlling equity stake and has provided working capital financing
  • Founded in 2009, Odyne is celebrating its eleventh anniversary – first mover advantage in truck electrification market – few, if any, direct competitors
  • Market leader in providing PEV (plug-in electric vehicle) systems for medium- and heavy-duty commerical work trucks over 14,000 pounds
    • easily installed electrification kits help to propel vehicle and provide battery power for heating, air conditioning and hydraulic pumps that enable cranes, buckets and other equipment to be operated with the engine off
    • enhances the existing diesel powertrain while retaining the vehicle warranty – the lowest cost option and best fit for most fleets
  • Huge addressable market with millions of medium- and heavy-duty fleet vehicles and compelling value proposition – quiet worksite operations; enhanced acceleration; reduced emission and fuel costs; lower engine maintenance
    • systems in place in over 70 fleets; more than 350 units sold
    • customers include LADWP (LA), City of Seattle, ConEd (NY), Exelon (Chicago, Washington D.C.), Duke Energy
    • expanding customer base -2019 sales included Madison (WI), Marin (CA), Philadelphia (PA)
    • Odyne approved for Incentive Funding through the California’s HVIP (Hybrid and Zero-Mission Truck and Bus Voucher Inventive Project) for $40,000 per vehicle
  • 47 granted and 9 pending patents in electrification technology –  includes proprietary mechanical interfaces, system architecture and proprietary control system software
  • Strong, experienced management team led by Joe Dalum
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Helping Great Companies Grow

Opportunity

“Tesla brought the concept of electric vehicles to reality in the minds of consumers worldwide”

  • Worldwide truck fleets are under immense pressure to reduce emissions and costs
    • large diesel trucks contribute to high emissions and noise
    • more stringent NOx regulations are also being formulated and are in effect in certain areas
  • In the U.S., the EPA Phase 2 Greenhouse Gas (GHG) emission regulations are scheduled to go into effect in 2021, including a rule that requires a 24% efficiency improvement for vocational vehicles by 2027E
    • California is leading the U.S. with regulations that forbid running a diesel work truck in “idle mode” due to increased NOx emissions
    • U.S. EPA NOx regulations expected to become more stringent through Cleaner Trucks Initiative (CTI)
  • In Europe, trucks account for over a quarter of on-road emissions
    • European market is focused on reducing diesel emissions and improving efficiency by expanding the use of  “Low Emissions Zones” in urban areas
    • Paris, Madrid and Athens to ban diesel vehicles by 2025E
  • Adoption of truck electrification systems is escalating due to demand for GHG and NOx emissions reduction, falling costs for battery systems, customer preference for quieter truck operations
  • Worldwide electric drive truck unit sales projected to climb 11-times from 2016 to 330,000 by 2026E
    • worldwide – over 2.68 million medium- and heavy-duty trucks produced annually
    • U.S. – over 6 million straight trucks are on-road; over 300,000 new straight trucks sold annually
    • U.S. – commercial work truck market over $100 billion
  • Most diesel trucks engine emissions occur in the “idle mode”
    • “driving mode” – diesel truck engines are fuel efficient and have reduced emissions driving at higher speeds
    • “idle mode” – diesel truck engines are highly inefficient, NOx emissions climb and life span of engine fall
  • Truck fleets in utility and telecommunications industry have the longest “idle mode” run times
    • 39% of repondents indicated their fleets idled 3-4 hours per day; 14% of fleets idled more than 4 hours per day
Helping Great Companies Grow

Solution/Strategy

  • Odyne has developed High Voltage PHEV and ePTO systems for work trucks
    • reduces NOx emissions up to 95% and reduces fuel consumption 50%
    • Odyne’s High Voltage PHEV – used to both propel trucks and provide alternating current or direct current to power heating, air conditioning
    • Odyne’s ePTO technology – hydraulic pumps that enable the utilization of buckets and cranes when the trucks are in “idle mode”
    • Odyne’s high export power – eliminates separate engine driven generators and can power refrigeration systems
  • Odyne offers the only commercially available PHEV and ePTO systems for large trucks that have been approved and endorsed by Allison Transmission
    • Allison Transmission warranty remains fully in-place after Odyne system installation
  • Odyne has first mover advantage in the ZEV (Zero Emissions Vehicle) truck electrification using All-Electric Drive technology, which has few, if any, direct competitors and Odyne’s customer base is expanding
    • Odyne has recently rolled out the first truck using its proprietary ZEV technology
  • Scalable straightforward integration and proven results on leading OEM vehicles including Daimler Freightliner, Navistar International Truck, FCCC, Peterbilt, Kenworth
  • Large credit-worthy customer base
    • majority of customers are large utilities, municipalities and corporations
  • Expanding customer base – 2019 sales include Madison (WI), Marin (CA), Philadelphia (PA)
  • Long-lived and reliable vendor relationships
  • Strategic partnerships with suppliers enhance branding and market reach
  • 47 granted and 9 pending patents in electrification technology – includes proprietary mechanical interfaces, system architecture and proprietary control system software
  • Research support by private projects and grants have funded a large part of product development costs
    • over $27 million in awarded projects with U.S. Department of Energy, U.S. Department of Defense, California Energy Commission, South Coast Air Quality Management District (LA) and others
    • $3.75 million U.S. Department of Defense awarded in 2019 for a Hybrid PTO project; additional $.5 million U.S. Department of Defense project appropriated in 2020, potential award in Q4 of 2020E
    • pipeline of $5 million in additional grants from U.S. Department of Defense, possible award 2021E
Helping Great Companies Grow

Management

Joe Dalum

President & CEO

Founded Odyne in 2009. Leader in efficiency technology and hybrid systems for medium and heavy-duty trucks. Over 30 years of experience in automotive and truck industries. Prior to Odyne, held senior management positions and served as a director at DUECO, Inc. for over 10 years, a large final stage manufacturer of trucks.  Also served as a Director for UELC, a truck leasing company.  Held sales and engineering positions in high growth segments at GM and Delphi for over 10 years.  Extensive experience in managing projects and bringing new technology from initial concept into high volume production. 18 U.S. patents in the area of vehicle electrification and automotive technology. Provided testimony before the U.S. Senate Committee on Energy and Natural Resources and the Committee on Science and Technology, U.S. House of Representatives in support of expanded use of hybrid systems. Board of Directors for the Green Truck Association (GTA; 2010-2014); President of the GTA (2013-2014).  Board of the Electric Drive Transportation Association (2012-2016). MBA from the Kellogg School of Management at Northwestern University and B.S in Mechanical Engineering from the University of Notre Dame.

John Stark

Vice President

Prior to joining  Odyne, held senior management positions at PPM America, Oppenheimer & Co., Inc., Corporate Financial Advisors, Telkonet, Steelwind and Water Tower Capital, LLC. Served as a Director at AET Films, American Restaurant Group, Bucyrus International, Carolina Steel, Cherrydale Farms, Coldwater Portfolio Partners, Crescent Communications, IPM Automotive, LePages, NCH NuWorld Marketing, Orius Telecommunications, Peebles, PPM America and Yunker Industries. Began career as associate attorney at Briggs and Morgan in Minneapolis, MN and later joined Washington Square Capital as an analyst. AB from Wabash College and JD from Vanderbilt University School of Law.

John Petras

Director of Programs and Principal Investigator

Leads and coordinates efforts with project partners to reach industry leading levels of increased vehicle efficiency, cost effectiveness and reliability, while complying with financial and organizational objectives. Assists in forming industry partnerships and achieving funding goals. Over 35 years of engineering and program management experience in automotive, marine and manufacturing industries. Extensive experience in managing engineering departments, product development processes and bringing new technology from initial concept into high volume production. Prior to joining Odyne held positions with GM and Mercury Marine.  MBA from the Stephen M. Ross School of Business at University of Michigan and BS in Mechanical and Industrial Engineering from the University of Illinois at Urbana-Champaign.

Leonard Lincoln

Director of Sales and Service

Focused on developing strong enduring customer relationships. Leads efforts to grow sales and expand Odyne’s service network and field service personnel. Supports and drives focus on customer satisfaction and long-term mutual benefit. Committed to providing customer focused cost-effective solutions. Over 20 years of experience in sales, marketing and service, high tech systems and leading cross-functional teams. Prior to joining Odyne, Marketing Manager for Owens Corning and Sales Engineer for TLX Technologies selling to OEM’s worldwide. President of L&L Packaging Company for over ten years. B.S. in Engineering from Michigan State University.

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Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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