Plug Power, Inc.

Greetings and welcome to the Plug Power Third Quarter Earnings Conference Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like the opportunity to ask a question, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Teal Hoyos, Director, Marketing Communications. Thank you. Please go ahead. Thank you.

Welcome to the 2022 third quarter update call. This call will include forward looking statements. These forward looking statements contain projections of our future results of operations or of our financial position or other forward looking information. We intend these forward looking statements to be covered by the Safe Harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements, and such statements should not be read or understood as a guarantee of future performance or results. Such statements are subject to risks and uncertainties that could cause actual results or performance to differ materially, from those discussed as a result of various factors, including but not limited to risks and uncertainties discussed under item 1A risk factors in our annual report on Form 10-K for the fiscal year ending December 31st, 2021, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day in which the statements are made and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug's CEO, Andy Marsh.

Well, thank you, Teal. So we have published an investor letter today that provides details about the quarter, status of our projects, and a summary of our midterm ambitions. I know to some our company is tough to financially understand in the near term. It really comes down to two areas, the cost of hydrogen and selling more equipment. The equation for success really comes down to building out our green hydrogen platform, which will transform a negative margin hydrogen business to a growing positive margin business just by turning on the plants. We've already demonstrated this in Tennessee. We can generate hydrogen at one-third the cost we're paying from the industrial gas companies today. We won't be discussing this issue within a year. It will be in the rearview mirror, and the issue will be how to accelerate the plants. Equipment sales, even for our new electrolyzer business's gross margins, are already over 15%. And we're just starting to scale. We've made fuel cells profitable in material handling, and now doing this again in electrolyzers and stationeries. You put these two items together with the real improvements in service, the 2023 targets of $1.4 billion in revenue, and exiting the year at break-even operating margins is achievable. The long-term business prospects are even more attractive. And it all starts with Klug doing real things. I know many of you were at the symposium and you saw a real gigafactory, real electrolyzer systems, real vehicles, real liquid hydrogen trailers, real fueling stations. You're able to touch and feel the hydrogen ecosystem, not in some distant future, but today. Now for the future. Plug is a leader and will continue to be a leader in the energy transition. We have first mover advantage in the fuel cell and hydrogen industry that we do not intend to cede. We will have the first green hydrogen network across the United States by 2025. And when we look out to 2030, we'll have the most commercial vehicles on the road through our Renault JV IVEA. We'll have the largest deployments of PEM electrolyzers. We'll be selling fuel cell peaker plants at scale using our hydrogen, and many, many more activities we'll be engaged with. Finally, there are short-term challenges, but we have a clear, well-defined plan that is being demonstrated. And long-term, we are building out our hydrogen ecosystem by ourselves and partners. that quite honestly is unmatched in the industry.