beacon power corp: modefinance credit report

If you want to know more, ASKMORE TM

modeFinance’s credit report.

Almost every day millions of peoplearound the world are wondering the realcreditworthiness of the companies withwhich they are in business. Every daythese questions remain unanswered.modeFinance

TM

now aims to answer thesequestions in a simple, complete andimmediate way.

ASKMORETM

is the modeFinanceTM

product which gives the chance toevaluate the credit risk for every companyfrom all around the world.

ASKMORETM plans 2 types of reports:

Basic Plus

ASKMORETM

Basic:This report includes modeFinance TM

’ sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.

modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]

askMORETM is a registered mark of modeFinanceTM

BEACON POWER CORPThursday, 17 November 2011

MORE Credit Rating

key

D C CC CCC B BB BBB A AA AAA

MORE Credit Rating

key

D C CC CCC B BB BBB A AA AAAnot

available

non return extremlypathological

pathological highdanger

weak sufficient adequate good very

strongextremely

strong

Company name BEACON POWER CORP

Identification number

Country United States of America

ZIP code and city 01887 - WILMINGTON

Address 234, Ballardvale Street

+1 978 694 9121

www.beaconpower.com

Legal form

Account Consolidated

Incorporation date 1997

NACE 2 Sector 3511 - Production of electricity

Listed

Status Active

MORE Credit limit 18,000 e

31/12/2010 31/12/2009 31/12/2008

Turnover (th e) 670 672 49

Rating CCC B B

Probability of default 16.00% 3.80% 3.80%

Confidence Level 92% 92% 100%

Solvency ratios

Leverage ratio 1.65 0.25 0.51

Total asset/Total liabilties 1.61 5.04 2.97

Liquidity ratios

Current Ratio 0.58 4.34 1.72

Quick Ratio - - 1.72

Profitability and economic equili-

brium ratios

Return on investement ROI (%) -29.54 -37.89 -60.88

Return on equity ROE (%) -79.21 -47.56 -92.02

Asset turnover 0.01 0.02 0.00

Interest paid weight -0.01 -0.01 0.00

Gross Profit/Operating revenue 0.40 -0.02 0.22

Interest Coverage ratios

EBIT interest coverage ratio -91.82 -164.38 -335.86

Analysis and trend of financial

strength


MORE Credit Rating

key


modeFinance TM srlVAT number [email protected]

Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741

Sector Analysis

Company Healthy Balanced Vulnerable Risky

Solvency ratios

Leverage ratio 1.65 0.56 1.99 6.23 -3.95

Total asset/Total liabilties 1.61 2.79 1.50 1.10 0.98

Liquidity ratios

Current Ratio 0.58 2.11 1.13 0.93 0.46

Quick Ratio - 1.90 1.01 0.80 0.35

Profitability and economic equilibrium ratios

Return on investement ROI (%) -29.54 16.69 6.99 3.28 -4.56

Return on equity ROE (%) -79.21 18.73 10.18 -0.45 -85.76

Asset turnover 0.01 0.70 0.42 0.26 0.64

Interest paid weight -0.01 0.02 0.24 0.55 -0.06

Gross Profit/Operating revenue 0.40 0.39 0.36 0.22 -0.01

Interest Coverage ratios

EBIT interest coverage ratio -91.82 54.95 3.52 0.97 -2.84

Cash Conversion Cycle (days)

Days Sales Of Inventory (DIO) - 9 13 18 26

Days Sales Outstanding (DSO) 114 48 53 53 60

Days Payable Outstanding (DPO) 2,515 18 29 29 56

Cash Conversion Cycle (DIO + DSO - DPO) - 36 33 24 26

Numer of analyzed companies - 503 1,506 748 172

(Average) Rating CCC A BB B CC

The sector has been chosen according to:

international companies in the sector NACE 2 3511 with financial data of year 2009.


MORE Credit Rating

key




Sector Analysis - Graphs


MORE Credit Rating

key




Balance Sheet

BALANCE SHEET (th e) 31/12/2010 31/12/2009 31/12/2008

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.74839 0.69416 0.71855

Total assets 56,831 34,709 27,733

Fixed assets 47,897 18,143 16,763

Intangible fixed assets 172 80 0

Tangible fixed assets 42,054 16,919 16,547

Other fixed assets 5,671 1,143 216

Current assets 8,934 16,567 10,970

Stocks - - 0

Debtors 209 33 9

Other current assets 8,725 16,534 10,961

Cash & cash equivalent 8,132 15,691 10,317

Shareholders funds 21,429 27,820 18,403

Capital 157 1,191 772

Other shareholders funds 21,272 26,629 17,631

Total liabilities 35,401 6,890 9,330

Non current liabilities 19,919 3,070 2,962

Long term debt 18,837 2,552 2,326

Other non-current liabilities 1,082 518 636

Current liabilities 15,482 3,819 6,368

Loans 495 422 84

Creditors 4,619 801 2,749

Other current liabilities 10,368 2,596 3,535

Total shareh. funds & liab. 56,831 34,709 27,733

NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008

Short term debts 495 422 84

Long term debt 18,837 2,552 2,326

Cash & cash equivalent 8,132 15,691 10,317

Net debt 11,200 -12,717 -7,906

31/12/2010 31/12/2009 31/12/2008

Working capital - - -

Net Current Assets -6,548 12,748 4,602

31/12/2010 31/12/2009 31/12/2008

Days Sales Of Inventory (DIO) - - 0

Days Sales Outstanding (DSO) 114 18 64

Days Payable Outstanding (DPO) 2,515 435 20,534

Cash Conversion Cycle (DIO + DSO - DPO) - - -20,470


MORE Credit Rating

key




Income Statement

INCOME STATEMENT (th e) 31/12/2010 31/12/2009 31/12/2008

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.74839 0.69416 0.71855

Sales 670 672 49

Revenues growth (%) -0.3 1,275.8 -

Other revenues +/- variation in inventories and contract in progress + Fixed assets

own construction capitalized0 0 0

Operating revenue / turnover 670 672 49

Total operating costs 17,657 13,822 17,178

Costs growth (%) 28 -20 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA -15,113 -11,873 -16,199

Depreciation 1,873 1,277 931

EBIT -16,987 -13,150 -17,129

Financial P/L 13 -81 194

Financial revenue 260 9 245

Financial expenses 246 90 51

Interest paid 185 80 51

P/L before tax -16,973 -13,231 -16,935

Extr. and other P/L 0 0 0

Extr. and other revenue - - -

Extr. and other expenses - - -

P/L before tax + Extr. and other P/L -16,973 -13,231 -16,935

Taxation 0 0 0

P/L for period -16,973 -13,231 -16,935

31/12/2010 31/12/2009 31/12/2008

Costs of Good Sold 404 688 38

Gross Profit 266 -16 11

Other Operating Expenses 17,253 13,134 17,140

31/12/2010 31/12/2009 31/12/2008

Cash flow -15,100 -11,954 -16,005

Added value - - -

31/12/2010 31/12/2009 31/12/2008

Number of employees 78 69 61


MORE Credit Rating

key




Evolutions and trends


MORE Credit Rating

key




Qualitative information

Full overview Beacon Power Corp is a publicly quoted American company which is engaged in the development, deployment

and production of sustainable energy storage and power conversion solutions. It was founded in 1997 as a spin

- off of SatCon’s Energy Systems Division, to develop flywheel - based energy storage. The company’s registered

corporate headquarters is located in Wilmington, Massachusetts. The company’s products include photovoltaic

(solar energy) inverters, as well as flywheel - based energy storage solutions. These products help increase energy

independence and promote renewable power. Beacon Power’s Smart Power solutions are designed to deliver

instantaneous power from solar energy systems or battery backup in the event of a grid outage. Its main product

brand names are Smart Energy Matrix and Patented Co - mingled Rim Technology. Beacon Power aims to further

the use of environmentally sound energy - related technology to deliver improved performance and long term

value for all company stakeholders to offer sustainable power quality solutions for utility - grade frequency and

voltage regulation, as well as power flow stabilization.

History Founded as a spin - off of SatCon’s Energy Systems Division, to develop flywheel - based energy storage.

Primary business line Engaged in the development, deployment and production of sustainable energy storage and power conversion

solutions.

Secondary business line Not available.

Main activity Manufacturing; Services.

Secondary activity Not available.

Main products and services Not available.

Size estimate Not available.

Strategy, organization and policy To further the use of environmentally sound energy - related technology to deliver improved performance and long

term value for all company stakeholders to offer sustainable power quality solutions for utility - grade frequency

and voltage regulation, as well as power flow stabilization.

Strategic alliances Not available.

Membership of a network Not available.

Main brand names Smart Energy Matrix; Patented Co - mingled Rim Technology.

Main domestic country United States of America.

Main foreign countries or regions Not available.

Main production sites United States of America.

Main distribution sites Not available.

Main sales representation sites Not available.

Main customers Not available.


MORE Credit Rating

key




Auditor/Advisor/Bank

name type address

MILLER - WACHMAN & CO. Auditor -

Computershare Investor Services Transfer Agent -

Board

name date of birth nationality function

Mr Virgil G Rose - United States -

Mr Daniel Ernest Kletter 03/10/1938 - -

Mr Edward A Weihman - - -

Mr F. William Capp - - -

Mr Jack P Smith - - -

Sharehoders (the first twenty shareholders ordered by Direct %))

CREDIT SUISSE GROUP AG via its funds Rating: -

Country ISO code CH Operating revenue (MIL $) 32,087

NACE Rev. 2, Core code - Total Assets (MIL $) 1,098,345

Direct % - Number of Employees 50,100

Total % 0.39 Information date 2011/06

Address: Not available

BLACKROCK, INC. via its funds Rating: BBB

Country ISO code US Operating revenue (MIL $) 8,612

NACE Rev. 2, Core code - Total Assets (MIL $) 178,459




VANGUARD GROUP, INC. THE via its funds Rating: -







MORE Credit Rating

key




GEODE CAPITAL MANAGEMENT, LLC via its funds Rating: -

Country ISO code US Operating revenue (MIL $) 0

NACE Rev. 2, Core code - Total Assets (MIL $) -

Direct % - Number of Employees 2



WEXFORD CAPITAL LLC via its funds Rating: -

Country ISO code US Operating revenue (MIL $) -


Direct % - Number of Employees -



PNC FINANCIAL SERVICES GROUP INC via its funds Rating: -






NORTHERN TRUST CORPORATION via its funds Rating: -






TORONTO DOMINION BANK via its funds Rating: -

Country ISO code CA Operating revenue (MIL $) 19,204





Subsidiaries (the first twenty subsidiaries ordered by Direct %)

BEACON POWER SECURITIES CORPORATION Rating: -



Direct % >50.00 Number of Employees -

Total % - Information date 2010/12


MORE Credit Rating

key




STEPHENTOWN HOLDING LLC Rating: -

Country ISO code US Operating revenue (MIL $) 0


Direct % >50.00 Number of Employees 2


STEPHENTOWN REGULATION SERVICES LLC Rating: -



Direct % >50.00 Number of Employees 3


TYNGSBORO HOLDING LLC Rating: -





TYNGSBORO REGULATION SERVICES LLC Rating: -






MORE Credit Rating

key




ASKMORE rating guide

General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of

an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk

factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial

companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy

model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the

model are obtained by applying newly developed numerical methodologies, drawing together financial theory,

data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective

algorithm that produces a classification of each company, by taking into account any attributes (such as sector and

country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis

and allows to process quality information. It induces a better understanding of a company’s strength and weakness

thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the

rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium

between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic

behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.


MORE Credit Rating

key




Rating scale

Rating class Rating macro class Assessment

AAA

Healthy

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

economic and financial flow and fund equilibrium.

AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial

equilibrium. Difference from AAA is slight.

AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in

circumstances and economic conditions than companies in higher rated categories.

BBB

Balanced

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial

commitments could be affected by serious unfavourable events.

BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing

uncertainties or exposure to adverse business, financial, or economic conditions.

B

Vulnerable

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial

fundamentals. Adverse market events and an inadequate management could affect with high probability the

company’s solvency.

CC

Risky

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the

company’s strong disequilibrium could increase.

CThe company shows considerable pathological situations. The company’s capacity to meet its financial

commitments is very low.

D The company has not any longer the capacity to meet its financial commitments.


MORE Credit Rating

key




Fundamental Credit Rating Ratios

Analysis area Ratio Assessment

Solvency ratios

Leverage ratioThis measures the level of total liabilities of the company in comparison

with equity.

Assets to debtThis indicates company’s solvency. The company shows a level of deficit

when the value of this ratio is under one unit.

Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.

whether a company covers the fixed assets with long term capital.

Liquidity ratios

Current ratioThis measures whether a company has sufficient short-term assets to cover

its short-term liabilities.

Quick ratioThis compares current liabilities only to those assets that can be readily

turned into cash.

Profitability and economic ratios

Return on Investement(ROI)This measures the profitability of company investments without regard to

the way the investment is financed.

Return on Equity(ROE) This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level

assumed from the ratio depends on the sector in which the company

operates.

Profit margin This indicates the profitability of sales.

Interest coverage ratio Interest Paid coverage

This indicate the ability of the company to cover interest expenses through

the economic margins (Gross profit and EBIT) and through the cash flow

from operating activities.


MORE Credit Rating

key




MORE Credit Limit, Probability of default and Confidence Level

MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial

relationship with the analyzed company with an outlook of one year.

modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;

• Years in Business;

• Average number of suppliers;

• Liquidity of the company and the comparison with its sector;

• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual

public data. This value should be reviewed by paying attention to the Confidence Level value and by using other

information such as other business information, news... etc; and private information such as the relationship with

client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence

Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of

confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go

into default.

As the probability of default is strongly affected by the economic climate that the company is operating in,

companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

∑Available Information∑

Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in

availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the

MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no

financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.


MORE Credit Rating

key




Notes and disclaimer

NOTES The present analysis was based on the company available financial statements as provided by Bureau Van Dijk

Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of

the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot

be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will

be based on information gathered in good faith from both primary and secondary sources, whose accuracy we

are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken

based on any information that may subsequently prove to be incorrect.

Contacts

Company modeFinance

Products MORE rating

Where AREA Science Park

34149 Trieste, via Padriciano 99 - ITALY

Info [email protected]

web www.modefinance.com

Phone +39 040 3755337

beacon power corp: modefinance credit report

Documents

quick ratio

liquidity ratioscurrent

levelof credit risk

coverage ratiosebit

asset turnover

aa aaanotavailablenon

report type

investement roi