EV Battery Supply Chain

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About Axeon

Axeon delivers clean mobile power for

electric vehicles, cordless power tools and

mobile products

Europe’s largest independent lithium-ion

battery systems supplier, processing over

70 million cells a year

Axeon is fully owned by AG Holding Ltd,

which is backed by funds managed by

Ironshield Capital Management LLP. This

gives us access to capital for growth

Increased revenues over the last few years

and considerable growth potential

Revenue (£mln)

0

10

20

30

40

50

60

70

2007 2008 2009

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Axeon’s automotive experience

Over half a million vehicle

miles driven since 2007

Volume production

Scottish vehicle converter

Demo project in Glasgow

Range of types of EVs

Electric urban delivery vehicle

Producing in volume

51kWhr pack

Range 70 miles

New prototype with volume potential

Small city car

Conversion of Citroen C1

Designed to deliver improved performance

Expert

Boxer

HEV Pack

Plant automotive

5Ah, 400V 29KW(Max) 3.84KW (Continuous)

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Parts of an automotive battery

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Diverse range of cells and suppliers

Axeon is cell-agnostic and has relationships

with all major suppliers of high capacity

Lithium cells

Axeon purchases >$60m cells/year

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Main Parts of a Battery

Battery Management System

Contactors for switching

Current shunt to measure amps in and out of the battery

Busbars and traction cables

Connectors

Fuses

Wiring Harness

Housing

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Main Supply Chain Issues

Cell technology is changing fast, no dominant technology

Main source of cells is China, Korea, Taiwan, Japan

Can supply match predicted volume demand?

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Forecasts for EVs

Market size doubling each year for the next

8-years.

Frost & Sullivan predict that by 2015 21%

of EVs will be produced by start-up OEMs

Source: Credit Suisse, 2010

Source: Credit Suisse, 2010

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Main Supply Chain Issues

Large cells are Class 9 Dangerous goods

Difficult to air-freight, special testing and documentation

required

Lead-time could be 10-12 weeks or greater

Forecasts from customers has been overly optimistic

Volumes are still very modest but rising

Customers expect battery pricing to drop significantly, however

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Battery pack price breakdown current

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The economics of the cell business

CommoditiesCopper

Aluminium

Stainless Steel

Graphite

+ Separator

80%

20%{Profit

OverheadManufacturing

Shipping

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Summary

Market volume doubling year on year over the next 8 years

Cell demand could outstrip supply

60% - 75% of battery price is sourced outside UK and EU

Raw material prices has a large effect on cell cost regardless of

volume

£80,000,000,000 global battery business by 2020

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Axeon Guide to Batteries

www.axeon.com

Axeon

Nobel Court Tel: +44 (0)1382 400040

Wester Gourdie Fax: +44 (0)1382 400044

Dundee DD2 4UH

Scotland, UK www.axeon.com