1. Financial Health of Li-ion Companies Jordan Baird HC 399

2. Goals 1)Financial data 2)Analyze the health 3)Find trends

3. Why Li-ion Companies? Li-ion is a relatively new and growing market Trends in growth industries ▫High capital investment ▫Losing money in the beginning ▫Materials cost/production cost affects price competativeness

4. Financial Data Public companies report financial data Data makes up financial health Financial ratios go one step further

5. Companies C&D Technologies - Manufacture Valence Technology – Research and manufacture A123 Systems – Research and manufacture Enersys - Manufacture Exide Technologies - Manufacture China BAK - Manufacture

6. And one financial statement

7. Profitability Gross Profit Margin ▫A percent profit made on each product sale

8. Liquidity Quick Ratio ▫How quick a company can pay up without needing to sell anymore inventory/product

9. Efficiency Inventory turnover ▫How quickly inventory is sold

10. Cash Flow Statement Shows where cash is being spent Three categories ▫Operations ▫Investing activities ▫Financing activities

11. Cash Flow Statement Most recent data, million USD Cash flow trends ▫Expanding infrastructure ▫Making money ▫Taking debt

12. Summary Profitability ▫20% margins Liquidity ▫1 to 1 Efficiency ▫5 days Cash from Operations ▫Making money

14. Cost of Li-Ion Does the cost of each company’s product decrease with time? ▫Maintained margins by lowering price

15. Sales of Li-Ion Are the companies selling more li-ion batteries? ▫Not the companies I looked at

16. Private companies Many companies do not publicly provide financial data ▫Tesla ▫Boston Power Can draw rough conclusions about Boston Power’s performance ▫Tesla too different for such a projection

18. Works Cited "Financial Ratios." MissouriBusiness.net: Missouri Business Development Program. 25 Feb. 2008. Web. 1 Dec. 2009.. "Financial Ratios." NetMBA Business Knowledge Center. 2007. Web. 1 Dec. 2009.. Google Finance. Google, 1 Dec. 2009. Web. 01 Dec. 2009.. "Investor Relations." A123 Systems, 18 Nov. 2009. Web. 01 Dec. 2009.. "Investor Relations." Valence Technology, 6 Nov. 2009. Web. 01 Dec. 2009.. "Li-ion Battery Manufacturers: The Bleeding Edge of Energy Storage Technology -- Seeking Alpha." Stock Market News, Opinion, Analysis, Investing Ideas. Seeking Alpha, 22 Mar. 2009. Web. 01 Dec. 2009.. "Lithium Ion Battery Manufacturers in the World." Lithium Ion Battery Manufacturers in the World. 2009. Web. 01 Dec. 2009.. "Next-Generation EDGAR system - Better Data. Stronger Markets." U.S. Securities and Exchange Commission, 1 Dec. 2009. Web. 01 Dec. 2009.. SBIR - Small Business Innovation Research. U.S. Government. Web. 01 Dec. 2009.. Stock, Mutual Fund, Hedge Fund, ETF Investment Research. Morningstar, 1 Dec. 2009. Web. 01 Dec. 2009..