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Investor Presentation

May 2018

DisclaimerThis presentation contains statements that constitute “forward looking statements” under the Private Securities Litigation Reform Act of 1995. All statements other than

statements of historical facts contained in this presentation, including statements regarding our short-term and long-term growth strategies, efforts to develop and

commercialize our products, future operations, future financial position, future capacity, future revenue, future Adjusted EBITDA, projected costs, prospects, plans,

objectives of management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties and other

important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements

expressed or implied by the forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “plan,”

“potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-

looking statements contain these identifying words.

These forward looking statements are only predictions and we may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements,

so you should not rely on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the

forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and

trends that we believe may affect our business, financial condition and operating results.

The information in this presentation is current as of May 11, 2018 and speaks only as of such date. We expressly disclaim any obligation to release any updates or

revisions to any information presented herein, including any forward-looking statements, to reflect any change in our expectations or projections or any changes in

events, conditions or circumstances on which any such information or statements are based for any reason, except as required by law, even as new information becomes

available. All information and forward-looking statements in this presentation are qualified in their entirety by this cautionary statement.

In addition to results presented in accordance with U.S. GAAP, this presentation and related tables include Adjusted EBIDTA, a non-GAAP financial measure. We have

provided a reconciliation of this measure to net income (loss) the most directly comparable GAAP measure, which is available in “Reconciliations” starting on slide 20. We

use Adjusted EBITDA as a measure of operating performance, because it does not include the impact of items that we do not consider indicative of our core operating

performance, for planning purposes, including the preparation of our annual operating budget, to allocate resources, to enhance the financial performance of our

business, and as a performance measure under our bonus plan. We also believe that the presentation of Adjusted EBITDA provides useful information to investors with

respect to our results of operations and in assessing the performance and value of our business. Although we believe this non-GAAP financial measure enhances

investors’ understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to or substitute for the

accompanying GAAP financial measures. The discussion of non-GAAP financial measures set forth in our Annual Report on Form 10-K for the year ended December 31,

2017 and filed with the SEC on March 1, 2018, as amended by the discussion of non-GAAP financial measures set forth in our Quarterly Report on Form 10-Q for the

quarterly period ended March 31, 2018 and filed with the SEC on May 4, 2018, pursuant to the Securities Exchange Act of 1934, as amended, are incorporated by

reference into this presentation and should be read in their entirety alongside this presentation

The risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2017 and filed with the SEC on March 1, 2018 pursuant to the Securities

Exchange Act of 1934, as amended, are incorporated by reference into this presentation and should be read in their entirety alongside this presentation.

2© 2018 Aspen Aerogels

DisclaimerThis presentation contains market data and industry forecasts that were obtained from industry publications, third party market research and publicly available

information. These publications generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy and

completeness of such information is not guaranteed. This presentation also contains estimates and other statistical data made by independent parties and by us relating

to market size and growth and other data about our industry. We obtained the industry and market data in this presentation from our own research as well as from

industry and general publications, surveys and studies conducted by third parties, some of which may not be publicly available. For example, this presentation includes

statistical data extracted from an off-the-shelf market research report (World Insulation - #3435) by The Freedonia Group, an independent international market research

firm, and a separate custom market research report by Freedonia Custom Research, Inc., a wholly-owned subsidiary of The Freedonia Group, or Freedonia, which was

commissioned by us and was issued in January 2017. Such data may be outdated and involves a number of assumptions and limitations and contains projections and

estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty. We caution you not to give undue weight to

such projections, assumptions and estimates.

The Freedonia Custom Research, Inc. Report, or the Freedonia Report, represents data, research opinion or viewpoints developed independently on our behalf and does

not constitute a specific guide to action. In preparing the Freedonia Report, Freedonia used various sources, including publicly available third party financial statements;

government statistical reports; press releases; industry magazines; and interviews with manufacturers of related products (including us), manufacturers of competitive

products, distributors of related products and government and trade associations. The Freedonia Report speaks as of its final publication date (and not as of the date of

this presentation).


EXPERIENCED LEADERSHIP TEAM

4

• President, CEO and member of Board of Aspen

Aerogels since 2001

• Prior to 2001, worked in the U.S. and abroad in

a range of senior operating roles for Cabot

Corporation

• Graduate of Harvard College and earned an

MBA from Harvard Business School

Donald R. YoungPresident & CEO

• Has served as CFO since 2006

• More than 10 years of service as a SVP of New

England Business Service in senior financial

and operating roles

• Earned a BA in Economics from Middlebury

College and an MBA from the Wharton School

of the University of Pennsylvania

John F. FairbanksVice President, CFO & Treasurer

© 2018 Aspen Aerogels

46%

33%

16%

5%

USA & Canada

Asia Pacific

Europe

Latin America

GeographyTargeted Energy End Markets

2017 Product Revenue by Region

Design, develop and manufacture innovative, high-performance aerogel insulation primarily

used in large-scale energy infrastructure process facilities

Offers a superior combination of performance and long-term value

Global network of energy-focused distributors, contractors and engineering firms

Proven market adoption in $3.1 billion global energy infrastructure market

23% revenue CAGR since 2008 despite energy market challenges

Over $730 million installed base and poised for continued penetration

Aerogel Technology Platform (ATP) rich with significant potential in diverse markets

AN AEROGEL TECHNOLOGY COMPANY

5

REFINERIES PETROCHEMICAL

POWER

LNG & GAS

OFFSHOREOIL SANDS


STRATEGY

AEROGEL TECHNOLOGY

PLATFORM

CORE MARKETS

ADJACENT MARKETS

NEW MARKETS

Invest in and drive innovation

Penetrate and gain global market share

Leverage existing products and channels to

add additional markets

Commercialize Aerogel Enhanced Products

through strategic partnerships

6

SUBSEA REFINERIES PETROCHEMICAL

LNG & GAS DISTRICT ENERGY POWER


CORE MARKETS

7

REFINERIES

DISTRICT ENERGY

ELEMENTS OF STRATEGY

GENERATE CASH FROM

CORE & ADJACENT

MAXIMIZE

LONG-TERM VALUE

ORGANIZE AROUND

INNOVATION

BREAKOUT VALUE

THROUGH NBD

• Enhance process technology to expand East Providence (EP) capacity

• Penetrate global energy infrastructure market to fill EP

• Generate cash to invest in new business development (NBD)

• Identify and prioritize big opportunities to leverage ATP

• Articulate value propositions and explore business models

• Commercialize innovation to drive value

• Nourish core and adjacent market penetration to build cash generator

• Asymmetrical targeting of breakout opportunities

• Leader in thermal with valuable option on breakout opportunities

• Embrace complex challenges with dedicated resources

• Attract world class expertise and partners

• Engage broader ecosystem to accelerate value creation


EP20 INITIATIVE AND FINANCIAL POTENTIAL


Core & Adjacent

Markets

$110 $140 - $150 $168 - $180

NBD

EP20 Initiative

• Increase East Providence manufacturing facility capacity by 20% by end of 2020

• Phased deployment of enhanced chemical and process technologies

• Estimated cost of $15 million to $20 million, supported by BASF prepayments

Penetrate Energy Market, Generate Cash

Invest For Breakout Value

Breakout

Value

New Business

Development

Product Revenue

EP20

Potential

Current

Capacity

2017

Actual*Millions

Adjusted EBITDA Breakeven $16 - $20 $28 - $35

* Values rounded to nearest million. Adjusted EBITDA excludes patent enforcement costs.

2018 MILESTONES

Base Revenue• Revenue excluding South Asia project & Subsea

• 10% to 15% growth with $100 million target

Financial Performance

• Grow YTD Revenue & Adjusted EBITDA each quarter

EP 20

Project

• $5M BASF prepayment

• Expand capacity


END MARKETS AND PRODUCTS

Refining

Used by 24 of

the world’s 25

largest refining

companies

Petro-

chemical

Installed by 20

of the top 20

petrochemical

companies

LNG

Preferred by

LNG & FLNG

for space

saving design

Power

Maximum

efficiency for

power

generation

Offshore

Thin and

durable for

pipe-in-pipe

applications

Other

Building

Materials

District Energy

Transportation

Apparel

Hot Process Applications Cold Process Applications Ambient & LowTemperature Applications


UNIQUE TECHNOLOGICAL ADVANTAGES

11

Amorphous silica solids

Characterized by extreme material properties

Lowest density solid ~97% air

Lowest thermal conductivity

Best thermal performance of any widely used insulation product

Reduced corrosion under insulation

Compact design and faster installation

High durability and fire protection

Industrially robust

Unique product form

Proprietary manufacturing process

Patent-protected: 107 issued and 94 pending patents owned or co-owned worldwide

Focus on ThermalOur Breakthrough

Technology

Advantages vs. Traditional Insulation

Our Aerogel Products


GLOBAL DISTRIBUTION NETWORK AND INSTALLED BASE

Distributor

Contractor

OEM

Installed Base

Installed in more than

40 countries worldwide

45 sales & marketing

employees and 60 distributors


INDUSTRY-LEADING END USERS


Financial Overview

14

15

For the Year Ended December 31,

See slide 20 herein for a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

($ in thousands) 2013 2014 2015 2016 2017

86,094$ 102,399$ 122,518$ 117,738$ 111,631$

75,363 85,319 97,870 94,427 92,960

10,731 17,080 24,648 23,311 18,671

Operating Expenses 30,703 33,123 30,883 34,531 37,807

(19,972) (16,043) (6,235) (11,220) (19,136)

Other Expense, Net (27,639) (50,281) (182) (803) (185)

Net Loss (47,611) (66,324) (6,417) (12,023) (19,321)

Adjusted EBITDA Add-backs 45,796 69,364 15,482 15,969 16,029

(1,815)$ 3,040$ 9,065$ 3,946$ (3,292)$

Revenue Growth 36% 19% 20% -4% -5%

Gross Margin 12% 17% 20% 20% 17%

Adjusted EBITDA Margin -2% 3% 7% 3% -3%

Adjusted EBITDA

Operating Loss

Cost of Revenue

Gross Profit

Total Revenue

ANNUAL REVENUE & ADJUSTED EBITDARECENT PERFORMANCE OFF TREND DUE TO WEAK ENERGY MARKET & IP ENFORCEMENT


16

2017 QUARTERLY PERFORMANCEGAINING MOMENTUM BY QUARTER

16

($ in thousands) 3/31/17 6/30/17 9/30/17 12/31/17

23,002$ 25,069$ 27,198$ 36,362$

20,781 21,375 22,250 28,554

2,221 3,694 4,948 7,808

Operating Expenses 11,273 9,127 7,978 9,429

(9,052) (5,433) (3,030) (1,621)

(26) (39) (58) (62)

Net Loss (9,078) (5,472) (3,088) (1,683)

EBITDA Add-backs 3,946 4,043 4,148 3,892

(5,132)$ (1,429)$ 1,060$ 2,209$

Gross Margin 10% 15% 18% 21%

Adjusted EBITDA Margin -22% -6% 4% 6%

Adjusted EBITDA

Operating Loss

Gross Profit

Total Revenue

Cost of Revenue

Interest Expense, Net


For the Quarter Ended


17

($ in thousands)

23,074$ 23,002$ 72$ 0%

20,264 20,781 (517) -2%

2,810 2,221 589 27%

Operating Expenses 9,560 11,273 (1,713) -15%

(6,750) (9,052) 2,302 25%

(92) (26) (66) -254%

Net Loss (6,842) (9,078) 2,236 25%

Adjusted EBITDA Add-backs 4,399 3,946 453 11%

(2,443)$ (5,132)$ 2,689$ -52%

Gross Margin 12% 10%

Adjusted EBITDA Margin -11% -22%

Total Revenue

Adjusted EBITDA

Operating Loss

Cost of Revenue

Gross Profit

Interest Expense, Net

Quarter Ended Change

3/31/18 3/31/17 $ %


Q1 2018 PERFORMANCESOLID MARGIN IMPROVEMENT


2018 FINANCIAL GUIDANCEINVESTING TO SET THE STAGE FOR 2019 GROWTH

18

2018 Outlook(1)

(in thousands, except EPS) Actual Low High

111,631$ 106,000$ 116,000$

Net Loss (19,321)$ (20,600)$ (17,600)$

(3,292)$ (5,000)$ (2,000)$

EPS (0.83)$ (0.87)$ (0.74)$

Shares Outstanding 23,390 23,600 23,600

Depreciation & Amortization 10,752$ 10,800$ 10,800$

Stock-Based Compensation 5,092$ 4,300$ 4,300$

Interest Expense, Net 185$ 500$ 500$

Gross Margin 17% High Teens

(1) This 2018 financial outlook specifically includes litigation costs and expenses of our patent enforcement actions at the U.S. International Trade

Commission and in Germany. The amount of these litigation costs are projected to be between $1.0 million and $1.3 million during 2018 versus

$3.5 million during 2017. Estimating litigation costs accurately is difficult and we may incur other charges, realize gains or losses, incur financing

and interest expense, or experience other events during 2018 that could cause actual results to vary materially from this guidance.

Adjusted EBITDA

Total Revenue

2017



Appendices

19

RECONCILIATION

20

Note: The table above presents a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

Year Ended December 31($ in thousands)

2013 2014 2015 2016 2017

Net loss (47,611)$ (66,324)$ (6,417)$ (12,023)$ (19,321)$

Interest expense, net 30,599 50,281 182 147 185

Depreciation and amortization 10,061 10,183 9,887 9,853 10,753

Loss on disposal of assets 230 119 - - -

Stock-based compensation 4,426 8,781 5,413 5,313 5,091

Gain on extinguishment of convertible notes (8,898) - - - -

Loss on exchange of convertible notes 5,697 - - - -

Postponed financing costs - - - 656 -

Write-off of costs associated with postponed public offering 241 - - - -

Write-off of construction in progress 3,440 - - - -

Adjusted EBITDA (1,815)$ 3,040$ 9,065$ 3,946$ (3,292)$


21

RECONCILIATION

21

($ in thousands) 3/31/17 6/30/17 9/30/17 12/31/17

Net loss (9,078)$ (5,472)$ (3,088)$ (1,683)$

Depreciation and amortization 2,676 2,630 2,726 2,721

Stock-based compensation 1,244 1,374 1,364 1,109

Interest expense, net 26 39 58 62

Adjusted EBITDA (5,132)$ (1,429)$ 1,060$ 2,209$




22

($ in thousands) 3/31/18 3/31/17

Net loss (6,842)$ (9,078)$

Depreciation and amortization 3,171 2,676

Stock-based compensation 1,136 1,244

Interest expense net 92 26

Adjusted EBITDA (2,443)$ (5,132)$



RECONCILIATION


RECONCILIATION

23

($ in thousands)

Actual Low High

Net loss (19,321)$ (20,600)$ (17,600)$

Depreciation & amortization 10,753 10,800 10,800

Stock-based compensation 5,091 4,300 4,300

Interest expense, net 185 500 500

Adjusted EBITDA (3,292)$ (5,000)$ (2,000)$


2018 Outlook2017


Investor Presentation

May 2018

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