PowerBatt Global Sales Guide

B2B – Traction Batteries

PowerBatt Global Sales Guide:

B2B – Traction Batteries

Content

1About this document

2Introduction to traction battery market

3History of PowerBatt and company overview

4Uniqueness and benefits of PowerBatt traction battery treatment

4.1Benefits and effects

4.2Competitive position

4.3Unique selling position of PowerBatt

5Specifics of the traction battery market

6Key challenges to be solved with PowerBatt

6.1Leased forklift/battery

6.2Privately owned forklift/battery

6.3Winning a global player

7PowerBatt Sales Cycle

7.1Identification of potential customers and their qualification

7.2First contact

7.3Presentation to management

7.4Testing – plan & execution

7.5Testing – evaluation

7.6Proposal

7.7Decision – contract

7.8Implementation

7.9Account development

1About this document

The presented document aims to provide thorough sales process guidance for PowerBatt representatives world-wide. Following the outlined recommendations and best practices shall lead towards successfulfulfilment of sales cycles, ranging from acquisition of potential customers to continuous business development while achieving desired levels of service quality and ultimately, high customer satisfaction and retention.

Objective

  • Understanding and applying the PowerBatt traction battery product strategy
  • Providing world-wide PowerBatt distribution partners with a clear set of guidelines, best practices and measures on how to build and develop their customer base up to global standards
  • Establishing an international code of conduct for delivery of PowerBatt products and services to B2B customers
  • Building a strong data platform enabling PowerBatt to deliver cutting edge technologies in the future
  • Setting of Key Performance Indicators (KPIs) and reporting procedures

Audience

  • PowerBatt license holders (Business owners, CEOs etc.)
  • General and financial management
  • Business Development Managers (BDMs) and business line managers
  • Technical management

Interpretation

  • The presented methodology shall serve as a guide for distributors in driving their day-to-day business. If not stated otherwise, the following steps shall be adapted to meet the local business environment in respective territories
  • These sales guidelines are interlinked with the following dynamic aspects of PowerBatt business, and therefore shall be interpreted in line with their current status:

-Tractionbattery performance reports (used for interpretation of test results, both pilot and repetitive)

-Tractionbattery sales presentations and tools

-PowerBatt traction batteryperformance report (incl. Data protocol)

-Tractionbattery technical manuals:

  1. Traction battery testing manual
  2. PowerBatt mixing manual
  3. PowerBatt Preventapplication manual for traction batteries
  4. Introduction to lead-acid batteries – (Technical fundamentals for Business Development staff)

-PowerBatt sales and technical training manuals

-CRM procedures (in preparation phase)

2Introduction to traction battery market

Traction batteries(including deep cycle batteries) are used for propulsion of battery electric vehicles. Liquid electrolyte (also called wet or flooded)lead-acid batteries are the cheapest and most common rechargeable traction batteries available. Traction batteries are used in forklifts, electric golf carts, riding floor scrubbers, electric motorcycles, full-size electric cars, trucks, and vans, and other electric vehicles.Traction batteries differ from starting batteries because they are designed to give power over sustained periods of time. Deep cycle batteries are used in some electric bikes and similar transport vehicles. Traction batteries must be designed with a high ampere-hour capacity.Traction batteries are usually the most expensive component of electric vehicle, being about a third or even half the retail cost.

Areas of application

Traction batteries are widely used in small vehicles and machinery across industries and sectors, e.g.:

  • Key segments:

-Logistic (forklifts)

-Retail (forklifts, floor scrubbers)

  • Other segments:

-Recreation (golf carts)

-Construction & Agriculture (small technical vehicles)

-Aviation (ground handling vehicles)

-etc.

More detailed categorization including identification of key market players can be found in chapter 5.1

Key segment

Based on long-term PowerBatt experience the forklift segment has been identified as the single most important segment in the traction battery market.

3History of PowerBatt and company overview

Experience of the company Battery Gurus in the field of development, production and distribution of product to prolong lifespan of the lead-acid accumulators dates back to the 90´s of the last century. That time, team of scientists from the Czech and SlovakRepublicsworked on experiments aimed to develop a new method of lead-acid accumulator treatmentfor the army.

The following illustration summarizes the development of PowerBatt throughout the past decades.

Figure: History of PowerBatt

Today, PowerBatt products represent aworldwide patented, certified and customer-proven technology for treatment of three basic types of lead-acid batteries, starting, traction and stationary.

The strategic ambition of PowerBatt is to be a global leader in battery life extension, aiming at constant innovation, technical and business excellence. Therefore, we seek to deliver complex battery life extension solution including, customer specific battery servicing, maintenance and consulting.

4Uniqueness and benefits ofPowerBatttraction battery treatment

PowerBatt Prevent is used for treatment of liquid electrolyte or wet or "flooded" type traction batteries.

4.1Benefits and effects

Effects of PowerBatt

  • Removes hard sulphate accretion
  • Eliminates brown mud
  • Increases active surface of the battery plates
  • Softens lead on negative plates
  • Partially Restores original battery composition and inner morphology

Common technical benefits

  • Prolongs a life of battery by 100% and more through regular and proper application of our product
  • Greatly increases reliability and efficiency of batteries

Economic and environmental benefits

Regular use of PowerBatt is currently the easiest and the most effective way of reducing the costs related to the battery management. At the same time it has positive environmental effects as well.

PowerBatt is proven to:

  • Deliver High ROI and average savings in value of around 70% of capital replacement costs and increases battery performance
  • It prevents early battery/individual cell replacement and decreases energy consumption while lowering levels of CO2 emissions, disposal costs and toxic lead waste in the environment
  • Mitigation of the negative impact of high battery-to-vehicle cost ratio, through minimizing unexpected early replacement costs

PowerBatt is easy to use

  • Application is not technologically or investment heavy and takes place directly at the customer’s site
  • Liquid is simply added every 12 months to battery’s electrolyte according to conditions of use and external factors (e.g. climatic conditions)

4.2Competitive position

PowerBatt product has avery limited direct competition on the market. Nevertheless there are several factors we identify as an indirect competition and lobby we face once we launch business activities in new territories.

Indirect competition consists of several locally established distributors of batteries as well international producers of batteries with sales representative offices in different regions, often working as a strong lobby. These businesses typically supply the local market with a variety of batteries to meet customer’s needs. Local distributorships are reselling wide range of international brands of batteries, and provide outsourced services to fulfill customer’s needs.

Direct competition offers a slightly different type of services focused on regenerative treatment, compared to maintenance and preventive treatment offered by PowerBatt. A common feature of competition is the presence only within a limited territory caused by the complexitypulse technology used to regenerate batteries. Pulse technology might use shock interval and large doses of electric current, which hits the battery thereby mechanically releases the build-up of sulphate on battery electrodes, but also in parts of the active electrode material. The results of such regeneration are not sustainable over a period longer than 6 months. Sustainability and ease of application is the most important distinguishing factor of PowerBatt compared to regeneration methods. Major competitors are present mainly in the retail SME segment.

4.3Unique selling position of PowerBatt

In summary, PowerBatt offers the following unique selling points:

  • PowerBatt is easy to use and easy to apply. Unlike competition, PowerBatt is applied directly at the client’s site, without the need to invest in new equipment and technology. This means:

-Minimal, if any investment into new technology

-No need to carry heavy equipment

  • PowerBatt is non-invasive andremoves crystallized sulphate by natural electro-chemical reaction
  • Restores original battery composition and inner morphology bringing long-term stability and sustainable performance

5Specifics of the traction battery market

The forklift market due to its global size, importance and technical aspects often operates in various business models which require specific solutions.

Traction batteries segment is very attractive in terms of PowerBatt business potential due to:

  • High CAPEX (typically over 4.000 EUR for a new traction battery) making life extension of available batteries desirable
  • Short battery life span, usually 4-5 years (approx. 1500 charging cycles) in most forklifts and similar equipment exposed to frequent usage
  • Life-span of traction batteries often depends more on the extent of charging cycles (1, 2 or three daily work-shifts) than age, as well as cleanliness and working conditions and climate. E.g. Batteries operating in warm and humid climate, 3 work-shifts, dusty environment do not reach the life-span indicated by the producer
  • Traction battery segment with its complexity requires top-notch technical competence of PowerBatt staff
  • Sustainable business cycle; PowerBatt is applied typically every 12 months after the first year of operation
  • Technical competence of traction battery servicing staff allows for better cooperation and faster acceptance of PowerBatt technology and thus better understanding of its effects and benefits
  • Successful pilot projects with large clients often lead to long-term application of PowerBatt
  • Through repeatedly recorded data and testing over the span of several years we are able to demonstrate long-term benefits, references and strong sales arguments supporting the continuous sale of PowerBatt
  • Based on PowerBatt experience, it can be stated that the capacity of traction batteries is virtually always stabilized and in most of the cases shall increase over the period of couple months
  • Global growth of the traction battery treatment market, implied by global trade and legislation related to environmental protection and work and safety regulation (decrease in use of gas powered forklifts inside of buildings)

6Key challenges to be solved with PowerBatt

PowerBatt can be used as a tool in more predictable business under following business scenarios:

6.1Leased forklift/battery

Large global companies tend to lease their forklifts, due to the demand for top quality and reliability. As a result, they often change the entire fleet every 3-5 years.

Battery replacement costs are a nightmare for most of the players since their predictability and influence ability if very low. The predictability of costs during the lease period is crucial to achieve profitability.

Furthermore, forklift producers must pay special attention to the batteries, since it’s almost impossible to sell the used forklift with a battery bellow a certain capacity (50-60%) at the end of lease agreement.

6.2Privately owned forklift/battery

Reaching a maximum life-span of forklift batteries remains a key issue for most of the private owners due to the direct impact of high battery purchasing and maintenance cost. Furthermore, the industry standard is that unless there is a production defect in the battery (normally seen within 1st six months) no other warrantees are accepted in reality.

PowerBatt brings reliability and efficiency to the entire battery operation.

6.3Winning a global player

Once you convince a global player, through saving the company costs and bringing new revenue, you are ready to harvest long-term business relationship benefits. In next step you can gain direct access to their customers and jointly organize acquisition activities. (The PowerBatt brand has been supported by global recognition of this market leader).

7PowerBatt Sales Cycle

Sales cycle of PowerBatt is a complex process due to character of the product and related services. We have to fully understand the complexity of the sales cycle, which is divided into the following stages:

  1. Identification of potential customers
  2. Contact establishment
  3. Presentation to management
  4. Testing –plan & execution
  5. Testing – evaluation
  6. Proposal
  7. Contract
  8. Implementation
  9. Account development

From our long term international expertise the average sales cycle for treatment of traction batteries is estimated for approximately 12months, which may vary territory to territory (cultural & business specifics, type of customer etc).

The following sub-chapters deal with the individual sales cycle stages leading from initial market research through testing and ultimately to successful contract implementation and continuous business. Each of the stages is divided for clarity into five elements:

  • Responsibility; indicates who is involved in planning and execution of the sales cycle stage
  • Activities; identifies key activities to be performed in order to successfully complete the sales cycle
  • Best practice; outline of most efficient approaches based on the long-term experience of PowerBatt Europe and global representatives
  • Output; definition of desired results from each of the sales cycle stages
  • PowerBatt support materials; outline of available documents, reports, templates etc. supporting the sales cycle stage

It is important to read the following guide in the context of up-to-date versions of available support materials such as performance reports, presentations, templates etc. downloadable from the PowerBatt Europe intranet.

7.1Identification of potential customers and their qualification

Initial stage of the sales cycle for traction battery treatment deals with execution of detailed market research and analysis of potential customers for PowerBatt treatment.

Responsibility

  • Business Development Manager (hereinafter as BDM)

Activities

  • Using the preliminary market research conducted during the pre contract phase with distributor, the BDM shall now dig deeper in finding desired information about the market
  • Map traction battery market size, growth potential and structure´
  • What is the typical ownership form for vehicles using traction batteries:

-Lease (Vehicle reseller or lease company)

-Private ownership (end-user)

  • Identify who is performing the servicing of batteries in the market:

-Vehicle resellers

-Branded repair shop networks

-Individual repair shops

-End-users on their own

  • Identify key market players based on the size owned or serviced fleets of vehicles using wet lead-acid traction batteries. Clients can be typically divided into the following categories:

-Small; less than 20batteries

-Large; 200batteries and more

-Global players:

-Forklift producers: Linde, Toyota, Jungheinrich, STILL, YALE, Hyundai

-Forklift users: DHL, TNT, UPS, FedEX, Schenker, Tesco, Billa, Lidl, Wall Mart etc.

  • Review general information on legal status and financial health of the potential customers
  • Detailed review of customers operations and PowerBatt fit into portfolio
  • Review customers potential B2C clientele

Best practice

  • It can prove beneficial to start with clients operating 10-20batteries, in order to gain confidence and practice before moving to large portfolio clients and lucrative global players
  • Typically a network of service and repair shops such as official forklift dealerships or branded services are lucrative customers, due to their exposure to high number of batteries. However, motivation and training of these customers and their technical and sales staff must be a priority
  • Owners of logistics companies with in-house servicing of vehicles proved to be very responsive to economic savings delivered by PowerBatt
  • In cases where the client has a large fleet of vehicles, but which are serviced under lease agreement, the appeal of PowerBatt savings might be lower. In such case, it ca prove beneficial to contact the lease company directly
  • Before a strong technical team has been established, it can prove difficult to handle large clients with broad geographic presence and high standards of technical competence and professionalism (e.g. store chains, country-wide logistic companies)

Output

  • Clear understanding of type of potential clients, their battery servicing operations, potential for growth and engaged stakeholders
  • Understanding who is the owner/operator of vehicles (lease company, vehicle reseller or end-users)
  • Market overview report shall be prepared, defining competitive landscape and listing the potential customers including identification of key stakeholder
  • This report shall be made available to PowerBatt HQ for review
  • PowerBatt HQ shall identify possible synergies and help the BDM contact local branches of global corporate clients where PowerBatt has previously established positive relations, including references and tailored presentations

PowerBatt support materials

  • Overview of important clients provided by PowerBatt HQ accompanied by information reference client acquisition

7.2First contact

Initiation of first contact with the client with the aim to present the PowerBatt traction battery treatment with all its benefits.

Responsibility

  • BDM

Activities

  • Establishcontact with key stakeholders through business network
  • Use awell structured introduction letter
  • Attach PowerBatt traction battery sales materials (use industry specific presentations if applicable)
  • Follow up on any previous communication

Best practice

  • Contacting clients on daily basis is a fundamental activity leading to new business acquisitions. Most successful PowerBatt distributors contact 10-20 potential clients weekly and more
  • It has proved beneficial to use intermediary parties with strong networks in order to gain quick access to given market and prompt establishment of contractual arrangements

Output

  • Assurance that the client has received the materials and understands the high-level objectives of PowerBatt and its product offering

7.3Presentation to management

High-level sales pitch presentation to key stakeholders in the company with the aim to initiate a testing of PowerBatt on selected traction batteries.

Responsibility