ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.
-
Upload
carol-lynch -
Category
Documents
-
view
215 -
download
0
Transcript of ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.
![Page 1: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/1.jpg)
Confidential July 17, 2015
Wind Opportunities in US & Mexico
![Page 2: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/2.jpg)
Who is xFlashpoint?
• Exclusive distributor• We sell everything that Hi-Energy
makes• US, Canada, Mexico• Many contacts in South America &
Caribbean (next markets)
![Page 3: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/3.jpg)
Value Proposition
• US Wind Energy will double in next 5 years• Hi-Energy Turbines are more efficient• Protected by 14 patents in 20 countries• xFlashpoint has exclusive rights• xFlashpoint has partnered with Blue Earth• xFlashpoint needs small investment to
capitalize on opportunity• Can quickly realize significant growth• A distribute vehicle for other Korean
products
![Page 4: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/4.jpg)
Hi-Energy Products
• Turbines– Single
![Page 5: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/5.jpg)
Hi-Energy Products
• Turbines– Single– Towers– Tower Clusters
![Page 6: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/6.jpg)
Hi-Energy Products
• Turbines– Single– Towers– Tower Clusters
• Streetlights
![Page 7: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/7.jpg)
Hi-Energy Products
• Turbines– Single– Towers– Tower Clusters
• Streetlights• Surveillance
![Page 8: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/8.jpg)
Hi-Energy Products
• Turbines– Single– Towers– Tower Clusters
• Streetlights• Surveillance• HVAC
![Page 9: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/9.jpg)
US & Canadian Market
• Average Cost of Electricity
![Page 10: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/10.jpg)
US & Canadian Market
• Average Cost of Electricity• Average Wind Speed
![Page 11: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/11.jpg)
US & Canadian Market
• Average Cost of Electricity• Average Wind Speed• Green Penetration (Particularly Solar)
![Page 12: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/12.jpg)
Mexican Market
• Average Cost of Electricity ($0.21/kWh)– One utility company (production &
distribution)– Regulations changing quickly
• Average Wind Speed
![Page 13: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/13.jpg)
Market Verticals
• Direct Sales• Indirect Sales• HVAC• Surveillance• Streetlighting• Telecommunications• Government/Military• Agriculture
![Page 14: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/14.jpg)
Subsidies and Incentives
• 30% Federal Tax Credit• 25% State Agricultural Grants• Regional “Energy Trust” Grants
![Page 15: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/15.jpg)
New Product Development
• Integrate Hi-Energy Turbines into new Products specific for our region– Cold Storage Warehouses
![Page 16: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/16.jpg)
New Product Development
• Integrate Hi-Energy Turbines into new Products specific for our region– Cold Storage Warehouses– Intel
![Page 17: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/17.jpg)
Main Competitors
Company Technology Main Products Location
Bergey WindPower HAWT 1 - 10 kW USA
Urban Green Energy VAWT 200 W to 3.2 kW
USA
Helix Wind VAWT 2 - 3.5 kW USA
Southwest Wind - Xzeres
HAWT 500 W to 1 kW USA
Ventera Wind HAWT 10 kW USA
Dyo Tech HAWT 400 W USA
Kliux Energies VAWT 1.8 kW Spain
Turbina Energy VAWT 500 W to 4 kW Germany
Eoltec HAWT 6.1 kW France
Gaia Wind HAWT 11 kW Scotland
Montanari Energy HAWT 1 - 2.5 kW Italy
Evance HAWT 5 - 15 kW UK
![Page 18: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/18.jpg)
Solar/Wind Parity
• Do we consider Solar a Competitor?
No!
![Page 19: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/19.jpg)
Solar/Wind Parity
• Do we consider Solar a Competitor?• Complementary Technologies• Solar Panel– 250W (on the surface of the sun)– 15-20% efficiency– Effective Output: 50W
• Wind Turbine– 300W (in a hurricane)– 40% efficiency (5-6 m/s)– Effective Output: 120W
Similar Rating, Twice the Output
![Page 20: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/20.jpg)
Solar vs. Wind Price
4.5 m/s 5 m/s 5.5 m/s 6.0 m/s$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
xF Wind TurbinesBE Solar ($4/W)BE Solar
Wind Speed (1 m/s = 2.2 mph)
Cost
per
Watt
![Page 21: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/21.jpg)
Solar vs. Wind Footprint
• Wind requires 10% of the space of solar
• Hybrid Wind/Solar is best
Footprint Parity Solar Wind (1 tower)Rated Output (W) 20,000 W 20,000 parity WNumber of panels 80Footprint of panels 160 m^2 16.65 m^2Percentage 100% 10%
![Page 22: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/22.jpg)
Marketing & Brand Management
• Active Social & Web presence• Advertising (narrowly targeted
industry segments)• Budget for promotion to raise brand
awareness• Industry trade shows
![Page 23: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/23.jpg)
Unique Distribution Opportunities
• Amazon– Channel for product promotion– Fulfillment potential
• Don’t need a warehouse• Don’t need warehouse and shipping
staff• Don’t need invoicing and payment
process tools and staff• Don’t need inventory control and
delivery systems and staffSaves Us Money
![Page 24: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/24.jpg)
Risks
Completely Risk Free!
![Page 25: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/25.jpg)
Risks
• Just Kidding!• Currency Risk• Competition could invent something
new• ROI’s are 5-7 years (a lot can happen
in technology in that time)• Regulations changing (reduced
subsidies, changing laws)
![Page 26: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/26.jpg)
Financial Projections
• Main components of the projections– Compounded Annual Growth Rate
(CAGR)–Main Driver is Experienced Personnel
(reflected as % of revenue)– Invest in Marketing and Brand
Recognition– Conservative Promotional Expenses– Cash flow and breakeven (Month 23)
![Page 27: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/27.jpg)
Financial Projections
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 13
Month 15
Month 17
Month 19
Month 21
Month 23
Month 25
Month 27
Month 29
Month 31
Month 33
Month 35
Month 37
Month 39
Month 41
Month 43
Month 45
Month 47
Month 49
Month 51
Month 53
Month 55
Month 57
Month 59 $-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Cash Balance
![Page 28: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/28.jpg)
Financial Projections
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 13
Month 15
Month 17
Month 19
Month 21
Month 23
Month 25
Month 27
Month 29
Month 31
Month 33
Month 35
Month 37
Month 39
Month 41
Month 43
Month 45
Month 47
Month 49
Month 51
Month 53
Month 55
Month 57
Month 59
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
5 Yr Revenue and EBIT
Revenue COGS SG&A
EBIT
![Page 29: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/29.jpg)
Financial Projections
$ 000s
Revenue 3,115$ 16,243$ 32,136$ 41,552$ 49,309$ COGS 2,460$ 79% 12,669$ 78% 24,423$ 76% 31,164$ 75% 36,489$ 74%Gross Profit 654$ 21% 3,573$ 22% 7,713$ 24% 10,388$ 25% 12,820$ 26%
Operating ExpensesTOTAL OPEX 1,295$ 42% 3,628$ 22% 6,476$ 20% 8,859$ 21% 11,028$ 22%
Salaries and Compensation 676$ 22% 1,256$ 8% 1,980$ 6% 3,148$ 8% 4,342$ 9%Others 619$ 20% 2,372$ 15% 4,495$ 14% 5,711$ 14% 6,686$ 14%
EBIT (641)$ -21% (54)$ 0% 1,237$ 4% 1,529$ 4% 1,792$ 4%
Accumulated Cash Flow Generation(641)$ (695)$ 541$ 2,071$ 3,863$
Total Headcount 5 11 17 24 33
Year 1 Year 2 Year 3 Year 4 Year 5
![Page 30: ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico.](https://reader038.fdocuments.net/reader038/viewer/2022110403/56649e5d5503460f94b55708/html5/thumbnails/30.jpg)
Summary
• Great Opportunity!• Expanding Market• Well Positioned to Capture Significant
Market Share• Lean Management and Expense
Approach• Perfect Timing for Renewable Energy
Investment
Thank You