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POLAR POWER PRESENTATION 1 May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
SAFE HARBOR 2
The following discussion, in addition to the other information contained in this presentation, should be considered carefully in
evaluating our prospects. This presentation (including without limitation the following factors that may affect operating results)
contains forward-looking statements regarding us and our business, financial condition, results of operations and prospects. Words
such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such
words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking
statements in this presentation. Additionally, statements concerning future matters such as revenue projections, projected
profitability, growth strategies, and other statements regarding matters that are not historical are forward-looking statements.
Forward-looking statements in this presentation reflect the good faith judgment of our management and the statements are based
on facts and factors as we currently know them. Forward-looking statements are subject to risks and uncertainties and actual
results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors
that could cause or contribute to such differences in results and outcomes include, but are not limited to, those discussed in this
presentation. Readers are urged not to place undue reliance on these forward-looking statements which speak only as of the date
of this presentation. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event
or circumstance that may arise after the date of this presentation.
This presentation shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any
securities of the Company nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
Company Overview 3
Foundation Technologies Application Markets
DC Power Systems Telecommunications
DC Hybrid Power Systems Military
Solar Hybrid Power Systems Electric Vehicle Charging
Nano / Microgrids
Marine and RV
“Changing the way we generate and consume power”
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
Company History 4
1979 1984 1985 1995 2015 2016 2017 2018 2019 2020
1 2 3 4 5 6 7 8 9 10
1. Polar Power (Polar Products) founded in 1979. First product was a solar powered vaccine refrigerator for emerging markets. Government interference forced Polar to
diversify its products and services we targeted Military market for DC power and cooling systems.
2. In 1984 Polar received its first military contract. A test cart for servicing the radar assemblies off the F-14 jet. Our test carts were installed on US Aircraft carriers, Hughes
Aircraft, and Northrop Grumman production facilities.
3. 1985 to 2005 Polar specializes in R&D for power and cooling, short production, and black programs. Polar has a strong history of providing solutions for unusual power
generation and cooling applications. But we were considered too small by the Dept of Defense for large production contracts.
4. 1995 to Present. Telecommunications power and cooling applications. Successful history with military combined with field trials at telecom sites led to production contracts
for off-grid, bad grid and backup applications.
5. 2015. Polar after many years of bootstrapping reached $6-7 million is sales giving us the confidence to reach out to family and friends and raise $1.2 million in equity.
6. 2016. With the $1.2 million in capital Polar sales grew to $24 million leading to $17 million NASDAQ IPO. The capital was needed for growth and customer diversification.
Polar is now receiving production military contracts.
7. 2017. This year Polar increased its investment into: sales, marketing, and engineering to diversify sales from single telecom customer.
8. 2018. Polar investments into diversifying customer base and manufacturing begin to yield results. New production contracts from top Tier-1 telecom customers provide
growth while challenging margins. Supply chain disruptions as a result of Tariff uncertainty lowered production volumes in third quarter while backlog grew to over $19
million.
9. 2019. Investment in localized products solutions and services.
10. 2020. Introduces new products into the telecom, military, and rural power markets. We expect to form marketing ventures with LPG suppliers for rural electrification and
micro-grids. COVID-19 has delayed the progress into other applications. Initial sales to telecom customers showed promising results
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
Polar Global Presence 5
POLAR POWER LOCATION
HEADQUARTERS Gardena, CA, USA
AUSTRALIA Sydney, Australia
AFRICA Namibia, Africa
POLAR POWER ROMANIA Bucharest, Romania
ROMANIA
7 Sales Offices – 2 U.S.;
SALES OFFICES Dominican Republic; South
Africa; Dubai, U.A.E.; Poland
AUTHORIZED SERVICE
11 Facilities in U.S.; Sri Lanka
POLAR POWER FACILITY
Corporate HQ
POLAR POWER
Service Center AUSTRALIA
Sri Lanka
POLAR POWER
AFRICA
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
6
Market Opportunities
Telecom Industrial
.
UPS + Prime Power UPS + Prime Power
Data Centers Data Centers
Battery Systems
Battery Systems
Cogeneration (CHP)
Series Hybrid Electric Drives for
POLAR Robots and Specialty Vehicles
P O W E R ’s
Military Marine and RV
CORE TECHNOLOGIES
APU + PPU AND PRODUCTS Prime Power for Off Dock / Dry Camping
Battery Systems S E R V I C I N G M U LT I P L E Battery Systems
Series Hybrid Electric Drives for MARKETS Series Hybrid Electric Drives
Specialty Vehicles and Robots
Nano/Microgrid
Prime Power
CHP
Automotive
Oil Field and Mining
Electric Car Charging
UPS + Prime Power
Anti-Idling Restrictions
Pumping
UPS – Uninterruptible Power Supply Remote work camps
APU – Auxiliary Power Unit Communications
PPU – Prime Power Unit
Customers 7
Telecom Military Others
* Polar Power is a supplier to all of the top 4 U.S. wireless carriers
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
CORE STRENGTHS 8
Ahead of the technology curve
Designing and selling solar DC hybrid systems since 1980’s
A participation in a wide range of military R&D contracts
Ideally positioned as a complete systems provider
Eliminates necessity of customers’ internal engineering and consultants
Gains more control over the customers’ overall product demands & higher market share
Maximizes profit by using the same core technology to various applications
Not reliant on one country, one market or one application
Mitigates risk of being over dependent on a particular customer or application
Avoids direct competition with commodity products like AC generator, lead acid batteries
Intellectual Property and Vertical Manufacturing
We manufacture our alternators and digital controls in house and assemble our engines from long blocks
We manufacture our cabinets, enclosures & shelters
We complete final assembly and testing on site
All above tasks including controls & software are proprietary which cause a significant barrier to entry for
our competitors
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
Application Diversity 9
Telecom
• Backup
• 5G deployment
• Federal and state mandates
• Critical infrastructure play
• Prime Power
• Need for energy efficiency and reliability
Nano-grid & Micro-grid
• Off-grid power generation
• Dairy farms, piggeries, water pumping, cold storages, off-grid living
• Small data centers
• Cogeneration (combined heat and power)
Advanced Mobility
• EV charging
• Mobile charging for emergency roadside assistance
• Stationary charging for fleet enterprises
• Hybrid vehicles
• Auxiliary power units for battery charging
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA
10
DC Power Systems for Telecommunications
May 2021 Copyright 2021 Polar Power Inc. 8
NASDAQ: POLACurrent packaging Options 11
Vertical DC Power System Open Frame DC Power System Horizontal DC Power System
Primarily used for backup power systems Primarily used for prime power systems Primarily used for prime power systems
including solar hybrid including solar hybrid
• Very small footprint. • Designed for installations • Designed for weather
• Diesel models include fuel inside shelters. Locating extremes, especially
tank. the generator inside a walk hurricanes.
• Propane and natural gas in shelter facilitates • All aluminum cabinet
units have compartment maintenance at sites with with stainless hardware,
space that can be used to weather extremes, corrosion resistant.
house batteries or super especially very cold • Available in all fuels:
capacitors. climates. propane, natural gas,
• Natural gas can operate off • Available in all fuels: and diesel.
of very low line pressure propane, natural gas, and • Can operate up to 6 - 12
without the use of booster diesel. months without maintenance
pumps. • Can operate up to 6 - 12 months without or inspection.
• Provides very quiet operation. maintenance or inspection. • Engineered to provide 15 to 25 year service life
• All aluminum cabinet with stainless hardware, • Engineered to provide 15 to 25 year service life with low maintenance.
corrosion resistant. with low maintenance. • Very quiet operation.
• Engineered to provide 20 to 30 year service life
with low maintenance.
• Will operate in all weather conditions.
• Maximum electrical output is 15 kW at 54 VDC.
May 2021 Copyright 2021 Polar Power Inc. 23
NASDAQ: POLAValue Proposition - Telecom 12
Key driving factors for on-grid and bad-grid:
Network hardening requires reliable backup power for BTS sites in USA
Regulatory changes mandating back-up power for all Telecoms due to natural disasters and grid failures
Lack of real estate to deploy traditional AC Generators that are 2 to 3 times in size of a standard Polar power system
5G deployment
Cell site backup to become extremely critical for many functions or industries to work
Requires higher powered generators that are compact and offer same reliability
First net program
Government’s radio network program launched recently
Several thousand backup power systems to be deployed by Firstnet program over next few years
Key driving factors for off-grid:
Reduce total cost of ownership of managing a cell site – capex and opex costs (fuel cost being the highest)
Transition in radio technology that is moving most sites into a pure DC environment
Carriers push to divest passive infrastructure assets to energy providers motivates them for cost effective solutions
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLATelecom Market U.S. 13
Telecom Towers U.S. U.S. TELECOM INFRASTRUCTURE – NETWORK
U.S. Cell,
6,415 Others,
PROVIDERS AND DAS LOCATIONS
17,243
AT&T, 67,000
SBA Com,
14,873
Crown, 40,039
A Towers,
40,163
Verizon,
58,300
Sprint, 50,000 T-Mobile,
59,417
Facilities Based Providers
POLAR POWER – SALES OFFICES
Users
National Networks Towers Telecom Network – U.S.A.
(millions)
AT&T 67,000 134
T-Mobile 59,417 71 a. Facilities Based National Providers – AT&T, Verizon, T-Mobile,
Verizon 58,300 145 Sprint covering 98% of national network TYPICAL CELL TOWER INSTALLATION
Sprint 50,000 59 b. Third party local and regional providers – American Tower, Crown
Castle, SBS Communications, U.S. Cellular and 120 other 8 – Shelters – Batteries, Radios, Communication
Total 234,717 409
providers equipment etc.
* Note - National Networks – 98% of Total National network
Third Party Multi Tenant Based Regional Providers to c. Resellers – Rural, low income providers that purchase from 9 – Backup Generator. Fuel types – Diesel, Gasoline,
(7) LPG, CNG, Propane etc.
National Networks Network providers, with no infrastructure. (Cricket, Boost, TRAC,
American Towers 40,163 Google, Metro PCS etc.)
Crown Castle 40,039 d. Mobile Satellite Providers – Disaster response, remote – oil
SBS Communications 14,873 industry, maritime, military, government, public safety – Global
U.S. Cellular 6,415 Start, First Net
Others 17,2423 e. Distributed Antenna Services – DAS – Antennas on rooftops,
Total Regional Providers 118,733 water towers, poles etc. deployed to boost spectrum efficiency.
Grand Total 353,450 Over 600,000 installations targeting 4G and 5G, IoT applications
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLA14
Telecom Market - Overseas
• More than 5,400,000 cell sites overseas of which 3,700,000 are in Africa and Asia
• Race to 5G - thousands of telecom companies estimated to spent more than 2 Trillion
USD over next five years on infrastructure for telecom sites
• Good grid applications
– DC generators with ultracapacitor storage targeted at this market
– Developed regions like Australia, Japan, western Europe are target markets
• Bad grid applications
– Largest market overseas in all developing nations
– DC generators, ultracaps and Lithium storage solutions
• Off grid applications
– More than 450,000 cell sites overseas
– DC generators, lithium storage and solar hybrid solutions
– Turnkey builder of cell sites in key selected markets
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLALPG /Propane and Natural Gas benefits 15
Comparison Diesel Environmentally Clean Gas
• Rapidly changing emission standards reduce engine availability to OEM’s and Environmentally Clean Fuel, rarely effected by change in environmental
increases engine cost. regulations.
• Strict emission controls is increasing Diesel engine complexity thereby Clean exhaust ideal for use near population centers.
reducing reliability and making maintenance more difficult. Reduction in greenhouse gases and
ENVIRONMENTAL • Diesel contaminates soil when spilled Carbon Credits
• Diesel exhaust Odor
• Higher CO2 Emissions 14% to 24% lower C02 emissions when compared to Diesel
• Diesel fuel has limited storage life and sometimes requires additives. Clean fuel Gas eliminates fuel maintenance and has unlimited shelf life
Transportation of Diesel to the site exposes the fuel to water contamination which clean fuel provides greater engine reliability.
STORAGE, SHELF LIFE which can damage the engine. During emergencies Gas may be more Obtainable than diesel.
TRANSPORTATON • Diesel engines require clean and moisture free fuel to operate reliably. Using Vapor feed for LPG/Propane contaminants remain in the tank.
• Due to compression ignition, Diesel engines produce much higher noise Low operating noise of Gas engine allows for deployment of engines near
(knock) thereby requiring a noise attenuation system. Noise is a concern when population centers and indoor facilities.
ENGINE NOISE systems are installed close to population centers.
• Diesel theft is a key factor increasing operating costs by 10% to 25%. In Gas is more difficult to steal; making it the ideal fuel for telecom and
addition, the practice of diluting diesel fuel as a means of pilferage leads to construction site applications.
FUEL THEFT premature engine failure.
• Diesel engines are subject to damage (wet stacking) if run with light loads. The service life of a “quality” LPG engine is 30,000 to 90,000 hours.
LIFE CYCLE COSTING • Quality Diesel engines will have a service life of 14,000 to 30,000 hours. Due to environmental benefits most nations provide subsidies to use of
clean burning fuels thereby reducing operating costs.
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAPolar has a Competitive solution to Fuel Cells based on an efficient, 16
long life, low maintenance Engine from Toyota
Higher Fuel Economy
Closed loop combustion control with fuel injection or electronic carburetor
Increased compression ratio
Eliminate the engine’s parasitic loads – water pump, engine fan, starting battery
alternator, belts and pulleys
Lower Maintenance and Increase Reliability
Replaced belt driven water pump and radiator cooling fan with energy efficiency electric
fan and water pump
Increase oil sump size and add Ultra-Fine oil filtration Polar - Up to 90,000-hour life
Increase engine maintenance intervals up to 1 year over 2 to 4 weeks for traditional LPG engine engineered for LPG and
natural gas
engines
Cast iron engine block with crankshaft bearings between each cylinder
Use Stellite valves to meet the higher combustion temperatures of gaseous fuels
Incorporated Polar’s Long-Life PM Alternator
No bearings
No brushes, slip rings, exciters
Corrosion Resistant Components and Enclosures for rugged outdoor use
Competition - 4,000 to 8,000 hour engine
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLADC Alternator vs AC Alternator 17
SIMPLICITY = RELIABILITY
Competitor’s Product: Polar Power
Leroy Somer Alternator
AC Model 42.2 DC Model 8220
Power: 16kW Power: 22kW
Weight: 246 LBS Weight: 49 LBS
Length: 18 IN Length: 5.5 IN
3X Larger
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAOshkosh Firefighting Vehicle 18
A Polar DC 5.5 kW DC auxiliary power unit
(APU) provides military grade DC power to
operate communications, air-conditioning, a
backup means to start the vehicle engine
and other equipment.
APU’s are extensively used in all types of
military vehicles.
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAMilitary 19
Electric Hybrid Reconnaissance Vehicle with 20 kW Polar DC Generator
Ground Support unit for the U2 aircraft. Dual power output 500 AMP
28 Vdc power and 60 kW of 400 Hz with computerized load testing
Auxiliary power for battlefield tanks
Hybrid power for robots and mules
Power for command centers and forward operating bases
Ground support for aircraft
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAMilitary 20
Seen here is a rugged 6×6 load-carrier for dismounted infantry.
Closely matching the mobility of infantry, the Hunter WOLF can
traverse narrow trails, steep slopes, and dense jungles. Using only
internal fuel, the vehicle has a 100 km (60 mile) range and 72-hour
endurance. The vehicle’s JP-8 / electric hybrid powertrain provides
both a “silent drive” and “silent watch” capability.
HDT’s Hunter 6 X 6 Wheeled Offload Logistics Follower (WOLF)
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLASpecialty Hybrid Vehicles 21
This Kalmar hybrid tow tractor incorporates
a Polar Power 26 kW DC generator. Hybrid
tow tractors can cost less to manufacture
than conventional technology.
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLARaytheon Specialty Hybrid Vehicle 22
In this application Polar Power Inc. is supplying DC
generators to Raytheon for its Hy-DRA vehicle. Installed
on this vehicle is the Polar 8340P-40415 generator with
output power of 20 kW at 320 VDC nominal. Crew have
the option of operating all electric in stealth mode then
switching over to the Polar DC generator for long range
cruising.
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAMarine Hybrid Electric 23
Saving energy while making recreation safer and
more pleasurable
• Series hybrid electric propulsion
• Powering air-conditioning, communications,
water-makers, autopilots and other electrical
appliances
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAMicro Cogeneration, Nano / Microgrid 24
Natural Gas based power generation 6 to 30 kW models
Stationary car chargers using Natural Gas or Propane
Waste heat available to space heating, hot water,
absorption air-conditioning
Markets include residential homes, hotels, resorts,
laundries, commercial buildings, oilfield, etc.
Natural Gas fueled DC generator delivering
12 kW of power and 72,000 Btu/hr of heating
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAChrysler Mobile Car Charger 25
• Polar has provided systems to Ford, Bosh,
Volkswagen and Mazda.
• Polar projects that the need for Mobile chargers
for “AAA” type road service is 3 -4 years into the
future.
• Also stationary rapid chargers for home / office
vehicle charging fueled by natural gas will help
launch micro-cogeneration in the USA.
Two Chrysler / Fiat electric vehicles being charged at the same time during road testing
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAOperational Highlights 26
MARKETS CUSTOMERS TECHNOLOGY PRODUCTS OPERATIONS
Provider of Prime and Backup DC Power and Strong Technology History & Brand Expansion and Automation key strategic
Energy Storage Solutions Recognition in DC Power Generation Market initiatives towards profitability – 2018 -
2019
• Approved Vendor to top 4 U.S. Tier-1 • Three Tier-1 telecom carriers
wireless carriers, Verizon, AT&T, T- transitioning to DC backup power • Negotiated Global Supply chain
Mobile, Sprint and 35 overseas telecom systems, validating energy efficiency and agreement with tier-1 engine
carriers and tower operators reliability of our technology over legacy manufacturers, reducing cost by 23%
AC technology
• Growth in International Sales Received • Added 50,000 sq. ft. new Production and
new orders from Africa (Namibia) & • Rationalized DC Genset product line warehousing facility to support growth in
South-East Asia (Sri Lanka); Completed designs to reduce costs to position our DC power systems sales to tier-1 telecom
field trials in Malaysia & Japan products to compete directly with lower customers in the U.S. during 2019
cost AC legacy products
• Received purchase orders for DC Power • Added over $2.0 million in fabrication
APU systems for $0.8 million from • Added Engineering staff to design and equipment to automate labor intensive
defense contractor prototype custom product configurations processes to increase throughput and
to support global tier-1 telecom quality
• U.S. Army Robotic Mule Program customers
Received purchases from multiple • Added management staff in production,
vendors to supply DC power systems for • Designed lower cost hybrid product to purchasing and material planning to
Robotic and Autonomous vehicles address bad grid and off-grid improve process flow and efficiency
applications in emerging markets
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAIncome Statement 27
Three Months Ended Years Ended
(in thousands, except per share data)
March 31st December 31st
2021 2020 2020 2019
Net Sales 3,290 2,860 9,031 24,801
Cost of Sales 3,348 3,020 14,654 19,882
Gross Profit (loss) (58) (160) (5,623) 4,919
Total operating expenses 1,840 2,160 7,341 8,901
Loss from operations (1,898) (2,320) (12,964) (3,982)
Total other (expense) (5) (19) (46) (63)
Loss before income taxes (1,903) (2,339) (13,010) (4,045)
Income tax benefit - 2,138 (2,139) -
Net Loss (1,903) (201) (10,871) (4,045)
Net Income (loss) per share
(0.15) (0.02) (1.01) (0.40)
– basic and diluted
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLABalance Sheet 28
(in thousands, except per share data)
March 31, 2021 December 30, 2020
ASSETS
Total current assets 25,755 14,645
Property and equipment, net 1,346 1,497
Operating lease right-of-use assets, net 1,403 1,563
Deposits 94 94
Total assets 28,598 17,799
LIABILITIES AND SHAREHOLDERS EQUITY
Total current liabilities 4,500 4,522
Notes payable, net of current portion 451 510
Operating lease liabilities, net 815 990
PPP loan 71 286
Total liabilities 5,837 6,308
Stockholder’ Equity 22,761 11,491
Total liabilities and shareholders’ equity 28,598 17,799
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLACapitalization Table 29
Class Number Percentage
Common Shares Issued - Directors
5,752,643 45%
and Executive Officers*
Common Shares Issued – Others 7,035,560 55%
Warrants 24,122 0%
Options 140,000 0%
Total Shares Issued & Outstanding 12,788,203 100 %
Fully Diluted Common Shares Out. 12,952,325
* 5,576,676 shares (44%) held by CEO Arthur D. Sams Table as of 5/21/2021
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAKey Management 30
ARTHUR D. SAMS LUIS ZAVALA RAJ MASINA
CEO and President CFO COO
• Since 1991, has served as our • 2016 – Chief Financial Officer • 2017 – Chief Operations Officer
President, Chief Executive of Polar Power of Polar Power
Officer and Chairman of our • 2009 – 2016 - Vice President of • 2009 – 2017 – Vice President
board of directors. Finance – Polar Power of Operations of Polar Power
• In his career, has worked as a • 2006 – 2009 - President of Sky • 2008 – 2009 – Supply chain
consultant to numerous Limited Enterprises (General consultant to International
Fortune 500 companies, the Contractor) Game Technology
U.S. Department of Defense • 2001 – 2006 - Director of • 2006 – 2008 – Assistant
and U.S. Department of Finance for Legacy Long manager for Applied Photonics
Energy Distance International Worldwide
• 45 years experience in • 20 years experience in • 15 years experience in
engineering, machinery, sales, managing accounting and engineering, business analytics,
marketing, project manager & finance departments supply chain management and
CTO and President roles strategic planning
May 2021 Copyright 2021 Polar Power Inc. NASDAQ: POLAContact Us 249 E. Gardena Blvd. Investor Relations www.polarpower.com Gardena, CA 90248 ir@polarpowerinc.com
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