Post on 06-Aug-2015
CARMANAH TECHNOLOGIES CORPORATION
Growth Plan 2009-2011
Solar LED Lights$27.4 million
Solar Power Systems$27.3 million
Non-Solar LED Signs$4.2 million
2007 Revenues
Carmanah’s focus is on the commercial and industrial sectors
STRATEGIES FOR GROWTH
1. Restructure of distribution channels
2. Reduce costs through product development
Save costs in sales/administration while expanding customer base
GROWTH STRATEGY PART 1RESTRUCTURE DISTRIBUTION CHANNELS
Customer 1
Customer 3
Customer 2
Customer 1
Customer 3
Customer 2
Seller 1
Customer 4
Customer 6
Customer 5
Seller 2
PARTNER WITH POWER UTILITIES
• 80% of sales based in North America• Current high solar incentives and tax
breaks in US• Opportunity for grid-tie to leverage
sales in other business units• Increase grid-tie sales from $4 million
to $18 in 4 years
17% REDUCTION IN OPERATING EXPENSES
2007 2009 2011
Gross Profit $15.5 million $15.3 million
$27.0 million
- Sales and marketing
- $9.0 million -$7.4 million -$9.3 million
- General and admin
- $10.1 million -$5.5 million -$7.4 million
Total -$3.6 million $2.4 million $10.3 million
GROWTH STRATEGY PART 2REDUCE COSTS THROUGH PRODUCT
DEVELOPMENT
Thin-film PV panels
$1.09/watt
Mono-crystalline silicon PV Panels
$1.39/watt
USE THIN-FILM IN SOLAR POWER SYSTEMS
• New technology is cheaper and as efficient
• Creates new solar application potentials
• Higher margin through decreased COGS
Cost Reduction (21.5%)
Average Commercial Installation Size
Cost Savings per Commercial installation
$0.30 / watt 15,000 watts / project $4,500 / project
TACTICAL PLANS
• Short-term (2009)– Establish US utility partnerships– R&D for thin-film
• Mid-term (2010-2011)– Develop US and Canadian utility
partnerships– Apply thin-film in solar systems
• Long-term (post-2011)– Establish key international partnerships
KEY FIGURES AND INCENTIVES
• $6,500 per watt of installed capacity• 15 kW average grid-tie project size
• Renewable Portfolio Standard• Net Metering• Feed-In Tariffs• 30 % Federal Tax Incentive
IMPLEMENTATION 2009• Establish partnerships with 3 utilities
– 2 in California and 1 in New Jersey
• Access additional customers through utilities– 1.6 million commercial/industrial/municipal customers– 83 new projects $8.3 million
• Invest in R&D for thin-film solutions
Net loss = $2.7 million
IMPLEMENTATION 2010• Establish partnerships with 2 utilities
– 1 in Pennsylvania and 1 in Colorado– 275,000 commercial/industrial/municipal
customers– 15 new projects $1.5 million
• Continue in California and New Jersey– 113 new projects $11.3 million
• Introduce new thin-film solutions to market
Net profit = $3.7 million
IMPLEMENTATION 2011• Establish partnerships with Canadian
utilities in Ontario, Quebec, and B.C.– Leverage success in U.S.– 41 new projects $4.1 million
• Continue in 4 previously mentioned states– 185 new projects $18.5 million
Net profit = $6.9 million
IMPLEMENTATION SUMMARY
396 new projects from American utilities
$39.6 million + 41 new projects from Canadian utilities
4.1 million Total new projects
$43.7 million
SUMMARY
In 3 years:• Revenues increased by $33.7 million
(57%)• Gross margin increased by 3%• Operating expenses decreased by
17%• Cumulative net income $7.8 million