VPS Investment Brochure

InvestmentCampaign

www.vps.energy Energy monitoring and remote management

Idea description

In the industrial and commercial sector, more than 1000 buildings and 20MW are currently under management by VPS using its proprietary platform Kisense, allowing consumers to save thousands of pounds per year.

In the domestic sector, VPS has shipped more than 20,000 units of the beautiful plug and play Cloogy kit, which achieves best in class in the world of home energy management solution in terms of user experience, to countries including the UK, Germany, France, Spain and Portugal. Reported savings in the domestic sector sometimes reach more than 25% of the total consumption.

https://youtu.be/O4mxwAl8LXg

Impact

VPS proprietary technology uses Plug & Play IoT (Internet of Things) devices and a Cloud based Big Data analytical engine, powered by machine learning techniques and backed by a five star customer support, to determine energy saving opportunities and provide effective demand side management.

This means that; through its proven track record and proprietary software & hardware technology, partnerships and integrated platform, VPS is able to provide a unique energy management system and control services to energy consumers, as well as virtual power plants to the operators of distributive electricity grids.

Virtual Power Solutions (VPS) is a tech company that provides ESaaS (Energy Savings as a Service) to all sectors: industrial and commercial, SME and domestic.

Aggregating all these savings, VPS aims to build a very large net of Virtual Power Plants (VPP) across Europe, contributing to a low carbon economy and to balancing the electric grid.

INVESTMENT PROFILE

With the recent COP21 Convention on Climate Change in Paris bringing together

an unprecedented level of worldwide commitment to carbon reduction, never

has there been a more opportune time to provide customers with ways to act to

reduce consumption.

In the UK, the Demand Side Balancing Reserve (DSBR) programmes instigated

by National Grid are also pushing the agenda for emerging clean-tech demand

response technology at an increasing pace. VPS proprietary technology is

uniquely positioned to provide a platform to customers to leverage both of these

energy-related macro-economic developments to the local user’s benefi t.

Awards:

Gartner Cool Vendor award for smart city applications, recognizing VPS energy management solutions as part of a building automation system that interactively audits and displays energy consumption and provides energy reduction opportunities.

https://youtu.be/EXteReQG8i4

Key partnerships:

Announced partnership with Anesco - the fastest growing UK ESCO in 2013 & 14

Signed partnership with a property management company providing access to 100.000+ social housing units.

Signed agreement with a complementary technology company, with initial pilot for a hight street vehicle maintenance customer with c1400 outlets.

In detailed discussions to become technology partner for major, global, energy consultancy. Initially on two key community projects in the UK.

Business model

Key business objectives of VPS:

Acquisition of key channel partners who will provide market entry and scale in key target markets;

Deployment of proprietary technology as widely as possible in target markets;

Long term revenue from the provision of supporting service / software contracts;

The development and management of one of the largest Virtual Power Plants (VPPs) in Europe, provided by the megawatts managed and controlled by installed VPS software.

VPS income streams include:

Revenue from purchases and install of proprietary software and hardware;

Ongoing ESaaS (Energy Savings as a Service) revenues from energy management and supporting services as well as licensing contracts;

Additional revenues from the provision of a VPP to energy traders and grid operators.

Accomplishments

Use of proceeds

Why are we raising funds?

James Napier, Chief Executive of VPS has stated that: “our mission is to provide energy consumers and their partners with the ability to see and control their energy consumption in real-time. Allowing them to minimise the consumption and carbon footprint of their buildings without compromising the day to day operations of these facilities.”

During the next 3 months we intend to further refi ne our marketing and growth strategy and continue to gain critical user traction, and attract further funding for development. We plan to organise a larger investment campaign in 3 months to fund further commercial expansion whilst looking to raise Series A funding in 6 to 8 months.

VPS aim to provide energy management services to all types of buildings and their owners or occupiers. For Cloogy, all sectors of the housing market (Private, Public, and Social Housing ) are looking to the cost and sustainability of their energy costs, as well as home automation and connected homes. Cloogy absolutely takes the user on this journey. For Businesses, from the SME through large I&C customers and Public Buildings such as Airports, Schools and Hospitals, the drive to new smart meters will provide energy suppliers with the ability to provide much more structured tari� s which refl ect costs to supply at the time of demand (Time of Use (ToU) tari� s) and will only increase all energy consumer’s focus on demand management.

Target Market

MARKET SCOPE

At the core of our o� ering is the VPS Integrated Platform (VIP):

Providing Industrial, Commercial and Domestic clients the means of gaining, real time, Active Demand Management of their energy consumption, and e� ectively achieving energy savings using the VPS ESaaS concept; and

Future proofi ng their consumption against changes in tari� structures.

For Network Operators:

Creating Virtual Power Plants enabling them to balance their grid with reduced demand at peak times; and

Localised programmes to manage [Constraint Zones] without the need for additional Capex.

For Energy Consumers, real-time demand management to:

Minimise – permanently the level of total energy consumption in conjunction with a range of Energy Conservation Measures (ECM’s);

Optimise – the time and source of consumption to match changing tari� structures for grid based sources of generation; and

Monetise – the value in the embedded fl exibility of their consumption.

All consumers are now looking at solutions which will: (i) lower the total amount of consumption; (ii) manage costs associated with ToU tariffs and associated grid costs, (iii) maximise benefi ts from, local, embedded, renewable generation and, (iv) increasingly encompass energy storage solutions into the overall energy strategy. For non-domestic, large consumers, ongoing government legislation, such as the Energy Savings Opportunity Scheme (ESOS) in the UK as well as the basic principles of the EU Energy E� ciency Directive will continue to provide penalties for business who aren’t making significant steps forward in sustainability.

Market Description

VPS has a deliberate and structured strategy of developing relationships with key channel partners. Since May 2015 VPS has developed agreements in the UK, with: a large, fast growing Energy Services Company (ESCO); a national property services company and a company providing energy management as part of an integrated comms package to the non-domestic sector. As a result of these relationships, VPS has started a trial of Cloogy in social housing, is currently developing and installing a trial of Kisense into a recognised national retailer with in excess of 1,000 buildings and is in the final stages of developing a proposal for a national chain of fi tness centres. In combination, these current partners already provide VPS with an estimated pipeline of 2,000 Kisense sales and in excess of 15,000 Cloogy sales.

In addition, VPS is currently working with other potent ia l partners including: a large scale property management company for Kisense to become their energy monitoring and management platform; a newly formed Community Energy Company for VPS to become the exclusive supplier of energy management technology; due diligence with one of the Big 6 UK Energy companies for VPS technology to be included in a range of energy schemes they have or are developing across the UK; a proposal for a company managing c15,000 operational assets for some of the UK’s leading mobile network operators, and a sales agreement to target a large national provider of paid-for TV services in the UK.

Our ongoing strategy is to continue to work with a targeted number of key channel partners and to embed VPS’s technology into their core o� erings. To date, we have successfully built two API’s to build Kisense as a seamless part of their existing o� er to their client base. We are currently supporting these efforts from the Technology Centre of Excellence in Portugal, but will, as a priority, create a mirrored centre in the UK and establish key account management for our channel partners.

Reaching the Market

This provides VPS with a wide target market with key priorities being: (i) large scale energy consumers, especially those with large, complex, dispersed estates; (ii) social housing with a focus on fuel poverty and protecting vulnerable tenants and (iii) community energy schemes which look to incorporate generation and supply as well as energy management to it’s members.

VPS has developed its technology over the last decade and we believe that, currently, it stands comparison with any other system available in the market place. However, in the fast moving market, two factors are key to success; 1. Market Acquisition and 2. Software Development.

Success Against Competitors

The market in both Portugal and the UK is currently immature, especially in the domestic sector, with no clear market leaders. Competitors range from small technology based start ups through established and funded players right up to large-scale multinational players such as Siemens, Schneider Electric and Honeywell.

VPS has a clear strategy to both establish itself in new markets as well as to compete long-term with all competitors. Key to any software based o� ering is market share (in many cases, it’s not necessarily the best but the most widely adopted solution that often wins). Secondly the ability to rapidly develop and bring to market continuous improvement which adds real value to users.

By partnering with established players on an exclusive basis VPS has access to a large number of existing customers. In addition, carefully selecting channel partners in di� erent areas of the market provides VPS with not only the maximum opportunity to sell to new customers but also to demonstrate real benefi ts in a wide range of market sectors to a wide range of stakeholders. To support this strategy VPS has 3 KPI’s: 1. Customer Acquisition; 2. Technology Deployment and 3. Megawatts under Management (the total amount of energy our products and services control). It is our strategy to develop local Technology Centres of Excellence to provide focus and support on each key market.

VPS is backed by a strong team with 20+ years of experience in the development and use of technology in the energy sector, headed by leading energy software & hardware entrepreneurs and Honeywell’s former General Manager for their Energy business in the UK.

By partnering with established players on an exclusive basis VPS has access to a large number of existing customers. In addition, carefully selecting channel partners in di� erent areas of the market provides VPS with not only the maximum opportunity to sell to new customers but also to demonstrate real benefi ts in a wide range of market sectors to a wide range of stakeholders. To support this strategy VPS has 3 KPI’s: 1. Customer Acquisition; 2. Technology Deployment and 3. Megawatts under Management (the total amount of energy our products and services control). It is our strategy to develop local Technology Centres of Excellence to provide focus and support on each key market.

VPS is backed by a strong team with 20+ years of experience in the development and use of technology in the energy sector, headed by leading energy software & hardware entrepreneurs and Honeywell’s former General Manager for


Success Against Competitors


By partnering with established players on an exclusive basis VPS has access to a large number of existing customers. In addition, carefully selecting channel partners in di� erent areas of the market provides VPS with not only the maximum opportunity to sell to new customers but also to demonstrate real benefi ts in a wide range of market sectors to a wide range of stakeholders. To support this strategy VPS has 3 KPI’s: 1. Customer Acquisition; 2. Technology Deployment and 3. Megawatts under Management (the total amount of energy our products and services control). It is our strategy to develop local Technology Centres of Excellence to provide focus and

VPS is backed by a strong team with 20+ years of experience in the development and use of technology in the energy sector, headed by leading energy software & hardware entrepreneurs and Honeywell’s former General Manager for

MARKET SCOPE

MANAGEMENT TEAM

Jorge Landeck

CTO

Founder and former CTO of ISA, owns a PhD in

Technological Physics and has more than 25 years’

experience in the areas of software, industrial control

systems and instrumentation. He authored several

scientifi c publications in international referred journals,

managed several RDI European projects and developed

several innovative remote management systems.

Basílio Simões

COO

Founder CEO of ISA, building the business to 160 people

and €9m turnover. PhD in Technological Physics with 25

years experience in the areas of electronics, telemetry

and remote management. Chairman of Smart-Cities

Association B2CITIzens.

Tweedie Brown, CBE

Chairman

Commander of British Empire: Tweedie saw service

mainly in Europe at the height of the Cold War and was

DCOS British Sector Berlin during the fall of the Wall

until 2004. Since then Tweedie has developed business

interests in several fi elds such as Local Government,

Housing, Information Technology, Carbon Certifi cation,

Energy and executive coaching and mentoring.

James Napier

CEO

Previously General Manager, Energy for Honeywell

Building Solutions, James has extensive experience

of selling and delivering energy efficiency projects,

supporting technology and ADR/Smart Grid. He has

participated in numerous Demand Side forums e.g.

Parliamentary Group for Energy Studies and is a board

member of the Energy Managers Association.

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originated from the merging of ISA Energy and Stor Generation, gathering the experience and technology of both companies, with the purpo-

se of assuring services and solutions that increase energy e� ciency and answer the requirements of individual users, as well as companies and utilities.

Ensure savings and decreasing costs, allowing the invest-ment made to be returned in the short-term, increasing sustainability and competitiveness for companies and for people - these are our goals.

VPS

Virtual Power Solutions LTDUnit 19 - 10 Acklam Road - Notting Hil London W10 5QZ -United Kingdom

Bernardo [email protected]+44(0) 788 466 6972

www.vps.energy

COMPANY PROFILE

We design solutions for a wide range of economic and industrial sectors, such as banking, retail, the hotel industry, the airport and health sectors, among others, whilst also embracing Automated Demand Response (ADR) in electrical distribution grids, public lighting grids and water supply networks. In addition, our solutions allow energy consumption monitoring for housing and SME’s.

Because saving energy is all about doing more with less.

Investment: £250,000.00

Percentage of equity o� ered: 2.70%

Pre-money valuation: £9,000,000.00

James [email protected]+44(0) 778 965 1163

PROJECTIONS 2016-18

Consolidated Sales above £30 million

Consolidated EBITDA above £5 million

Expected growth of shareholders value: 3.5x