gcwp gtis presentation - 101011
TRANSCRIPT
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Slide 1CONFIDENTIAL
October 12, 2011
Green Cycle Wind
Green Technology Investor Showcase Presentation
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Slide 2CONFIDENTIAL
Agenda
Mission, Vision and Goals
Industry Situation and Client Needs
Product Description
Target Markets and Client Benefit
Our Team
Growth Strategy
Revenue Model
Sales and Revenue Estimates
What We Need to Succeed
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Slide 3CONFIDENTIAL
With a clear focus on delivering energy efficiency from waste,Green Cycle Wind Pacifica is poised to make a huge impact
Mission
Vision
Q4 Goals
Help customers achieve energy efficiency goals by providingproducts and services that allow customers to convert wasteinto energy
Develop industry leading products
Create robust partnerships that leverage existing relationshipsto enable broad market entry
Develop ecosystem of partners that allow GCWP to focus oncore business while bringing comprehensive solutions tocustomers
Engage direct sales force in key cities in California
Create online tools and resources to support sales efforts
Participate in relevant conferences and trade shows
Close sales on 4-10 units in the field as proof-of-concept
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Slide 4CONFIDENTIAL
Evaluation of challenges faced by companies today revealsseveral opportunities for prospective solution providers
Economic / Financial
Challenging ROI picture Uncertain future pricing
Limited resources
High potentialcompliance costs
Solution Provider Implications
Strong products & services market
Point-solutions have limits
Win without government incentives
First win brings future opportunities
This environment provides a tremendous opportunity for innovative solutions from ateam that carefully listens to needs of customers and partners
Execution / Operational
Estimating future pricing
Regulatory compliance
Monitoring consumption
Smarter purchasing
Technical
Identify emerging technologies Evaluate potential solutions
Implement efficiently
Consumer Perception
Environmental consumerism
Corporate sustainability goals
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Slide 5CONFIDENTIAL
The WARPTM device is a unique product designed to helpcustomers address critical energy efficiency concerns
WARP Device Explained
Waste Air Recovery Process
Power range from 500W to 5KW
Capacity determined by conditions ofthe client site
Electricity returned to customer;
enables reduced consumption fromgrid
Unit payback in 5-7 years
Design life of over 15 years
Patent pending technology
Proprietary turbine blade design Customized bases and mounts
Weighs 450 to 800 pounds
Individual installation profile and benefit case will be unique due to the configurationof cooling towers, hours of equipment operation, and ambient wind profile.
Note: WARP stands for Waste Air Recovery Process
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Slide 6CONFIDENTIAL
Green Cycle Winds small wind turbine differs significantlyfrom traditional approaches to wind energy
Traditional Wind Turbines GCWP WARP Device
Source- Depends on ambient wind alone
- Idle in low wind conditions
+ Waste air from existing processes+ Ambient wind is a bonus
Size- Standard unit size- Complex installation takes away
from existing space
+ Small, compact unit+ No impact on building profile, campus
or roof space
Power- Intermittent power- Most power generation capacity, not
fully utilized
+ Predictable power+ Potential for on-site savings and
resale of power to grid (in-development)
Presence- Large, visible windmill installation
- Loud and controversial
+ Small unit; minimal visual profile
+ No noise problem
Durability - Single horizontal or vertical shaft increased pressure on bearings + Horizontal shaft with two long-livedload bearings
Expense - Often capital investment required+ Small capital investment+ Often falls under operational budget
IPProtection
- Patent protection is difficult+ Exclusive access to unique patent-
pending design
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Slide 7CONFIDENTIAL
Many facilities could benefit from the WARP device, but thecurrent focus is on Commercial Office and Manufacturing
Hospitals Refineries
Power Plants
Manufacturing
FacilitiesHigh RiseResidential
Commercial
Office
Hotels
Data CentersFarms &Ranches
Airports
GovernmentBuildings Prisons
Food Distribution
Centers
Two primary target segments are the largest and most geographicallyaccessible segments providing over 14K estimated potential customers
National Labs /Research Centers
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Slide 8CONFIDENTIAL
Our team has the experience and skills to deliver superiorvalue to customers and compelling returns to investors
Green Cycle Wind Pacifica
Phil Dillard
o US Naval Academyo Chicago Booth Business Schoolo Propulsion / Power Plant Engineero Machinery Manufacturing P&L
Manager
o Business & Marketing StrategyConsultant
Jodie NewDelman Principal
o PhD Neuropsychologisto Entrepreneur
o Author
Green Cycle Wind (IL)
Vince Blake
o Electrical Engineero Commercial construction
executiveo Energy efficiency consulting
Marty Blake
o Public Services Commissionleadership
o Marketing and Strategic Planningo Gas & Electric consulting
Ryan Blake
o Electrical Engineero Research and Development
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Slide 9CONFIDENTIAL
GCW Pacifica primary distribution area focuses on the 5Pacific states
Notes:1. GCW sales territory includes the 45 US states excluding CA, WA, OR, HI and AK
2. International sales rights are currently held by GCW International
Pacifica States
California
Hawaii
Oregon
Washington
Alaska
GCWP priority states
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Slide 10CONFIDENTIAL
GCWPs distribution strategy employs a small direct salesforce and leverages relationships with a number of partners
ContractManufacturer
(IL)
Manufacture
Product Distribution Value Chain
Distribute
Install
Service andSupport
3rd Party
Distributors(2/3)
GCWP(1/3)
Note:1. 3rd party distributors are companies, certified by GCW, that have existing relationships with targeted customers and would
benefit from the incremental revenue from sales commissions of WARP units
3rd PartyInstallers
GCWP & 3rd
Party Partners
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Slide 11CONFIDENTIAL
With a Seed Stage investment of $800K - $1M, to bring on afull staff, GCWP can break even with less than 500 unit sales
Short Term Sales Estimate
Target Market Penetration
o 2011 (Oct-Dec) = 10-18 units
o 2012
o Direct = 11 units / month
o
Indirect = 33 units / month
End of Period Sales Revenue:
o Total = $8.8M
o Direct = $2.4M
o Indirect:= $6.4M
End of Period Cash Balance
o $1.2M
Current Revenue Opportunities
Machine Sales
o Direct
o Indirect (partners paid commission)
Incentives Consulting & Managemento Tax Credits
o Carbon Offsets
o Accelerated Depreciation
o Rebates
o Other
Monitoring, Service and Support(Partner)
EnergyAudit / Product Referral
Due to early nature of market entry, expected sales cycle is not yet clear
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Slide 12CONFIDENTIAL
What We Need to Succeed
Sales Support
InstallationSupport
Seed Funding
Connections with direct sales targets
Introductions to potential sales partners Introductions to potentialproject financing partners
(Structure: preferred note)
Guidance on structure ofpower purchase agreements andincentives management(e.g. credits, rebates, carbonoffsets)
Support withproduct validation with engineering and/orsustainability organizations (e.g. LEED, GA, ISO)
Introductions to potential installation partners
Introductions to design engineering, construction, architecturaland energy efficiency consulting firms
Amount: $800K - $1M
Structure: Common equity
Timing: 2 raises - (1) Q4 2011 (2) Q2 2012
ROI / Exit: Acquisition or Participation in Free Cash Flow
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Slide 13CONFIDENTIAL
Questions and Next Steps