By improving the energy efficiency of American homes by 25%, we accomplish the equivalent of taking 1/2 of all passenger cars off the road

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By improving the energy efficiency of American homes by 25%, we accomplish the equivalent of taking 1/2 of all passenger cars off the road. Building Performance Upgrades Intelligence. EcoSmart Certified Properties. Eric Doub, CEO and Founder [email protected] - PowerPoint PPT Presentation

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By improving the energy efficiency of American homes by 25%, we accomplish the equivalent of taking 1/2 of all passenger cars off the road.

Building Performance Upgrades IntelligenceEric Doub, CEO and [email protected], 303-550-6001

EcoSmart Certified PropertiesVisionEcoSmart benefits people and the planet through energy and performance upgrades for existing buildings and envisions achieving national scale with significant profitability.Upgrade large inventories of existing buildings with the EcoSmart Certification System to provide superior economic returns through proprietary, repeatable and licensable packages of Business Systems and Technical Tools, while maintaining industry leadership through continuous innovation.MissionGoal by 2018Upgrade 20,000 properties per year and generate revenues of $25M

North Americas First Zero Energy Home - In 2005 Eric Doub designed, built and tested Solar Harvest, the first zero net energy custom home in a cold climate in North America

Eric Doub co-wrote the US Green Building Council Guidelines for green remodeling - National Standards for renovation and home performance upgrades analogous to LEED

Media: Over 50 major features including New York Times, Washington Post, Discovery Channel, HGTV

Won more than 20 awards including the US Department of Energys Builders Challenge Award and enjoys international recognition.Leaders in Technology

Licensing Partners Contractors Many thousands of potential Licensing Partners in North AmericaBusiness Model assumes 20,000 upgrades per year performed by Licensing Partners in year 5Average revenue of $950 per building from license and project fees Whole-Systems One-Stop Solution ModelEcoSmart Certification: Tailored to clients and marketsRapid conversion from assessment to action - 46 separate measures Potential scale of dozens of buildings per day per Licensing PartnerHigh-volume deal flow from EcoSmarts market relationships

EcoSmart Certified Properties

Intelligence by:Production by: Building Performance Upgrades, At Scale Building Performance Upgrades, At Scale

Hydronic Radiant Systems, Garage Ventilation Safety Systems, Lighting LED and CFL, Air Sealing, Pressure Balancing whole house, Water Point of Use Conditioning, Air Conditioners, Water Recirculation Systems, Retro Commissioning, Continuous Commissioning, Air flow Tuning, Water Whole House Conditioning, Carbon Monoxide Detectors, Heat Pump Heating Systems, Spot Ventilation Systems, Attic Insulation, Combustion Gas Safety Checks, Radon Mitigation, Energy Star Roofing, Solar Electric grid tied, Wall insulation, Energy storage and microgrid, Vehicle to Building VSB, Vehicle to Grid V2G, Crawl Spaces Sealing/Insulation. Daylighting Solar Tubes Skylights, Integrated Drainage Planes, MVAC Systems, Lighting Controls, Windows, Glazing Solar Control, Chimney Balloons, Water-Efficient Plumbing Fixtures, Attic Hatch Air Sealing, Solar Thermal, Ceiling insulation, Security Systems, Advanced Evaporative Coolers, Air Purification Systems, Bulk Water Management, Fresh Air Systems, Duct Sealing, Hydronic Furnaces, Humidification Systems, Water Heating, Gas Furnaces, Scheduled Maintenance, High Performance DoorsBuilding Performance Upgrades Implemented byLicensing Partners

Building Performance Upgrades Intelligence by EcoSmart Certified PropertiesOne-Stop Solution, Whole System Approach

Assessment / AuditScope - Whole Building Approach - Human comfort and useEngineered SpecificationsProjected Savings ReportLoan and Tax Rebate DocumentsPricingPlanning and Best PracticesSupervisionFinal AssessmentMonitoringEcoSmart Certified PropertiesFeatures and Benefits

Efficient technical interfacing with Contractors Constant upgrades to best tested building technologySpeed of 30, 40, 50 Buildings/DayTraining and Support for installation crewsHigh Performance Business Systems and Technical Tools

Market Size One Trillion Dollars of lending for energy efficiency next 10 years in the US. (1) Market SegmentsProperty Management CompaniesREO (Real Estate Owned)Home Owners Associations Large Remodeling ContractorsReal Estate InvestorsMarkets 80 million US homes need energy upgradesCommercial Retrofits Potential Market next 10 years: $220 billion(2)(2) Pike Research Energy Efficiency Retrofits for Commercial and Public Buildings 3Q/2011(1) Gilbert P. Sperling, U.S. Department of Energy, Colorado Energy Efficiency Finance Summit, August 2010

Markets Market TrendsCommercial Retrofits currently growing at a rate of 26% percent per year. (Rocky Mountain Institute)By 2020, the market for retrofits in commercial buildings will reach $152B worldwide. (Pike Research)Growing awareness of energy efficiency benefits by general population, corporations and governments point to a sustainable positive trend in the industry In 2012 Florida announced privately backed funds of $550M for commercial energy upgrades, and the city of Sacramento announced $100M of lending in California, leveraging market growth. Regulations Driving MarketsSeattle WA Ch 20.920. Affects multifamily and commercial buildings and reports are required since April 2010Washington State Bill 5854. Affects non residential and state buildings and reports are required since January 2011New York City Local Law 84, Bill 476-A.. Affects commercial buildings and reports are required since May 2011Washington DC CAEA. Affects non residential buildings and reports are required starting July 2011 thru 2014 progressivelySan Francisco CA Ch.20. Affects commercial buildings and reports are required since October 2011 thru 2014 progressivelyOregon House Bill 3535, Affects residential rental and commercial buildings and reports are required since January 2012 The information above is an abstract of State Laws and City Ordinances, and therefore incomplete and not fully descriptive. For complete text of laws and ordinances please refer to each state and citys websites.California Assembly Bill 1103. Affects non residential buildings and reports are required since January 2012Austin TX Ch 6,7. Affects non residential buildings and reports are required starting June 2012 thru 2014 progressivelyPhiladelphia PA Bill 120428. Affects large commercial buildings and reports will be required starting June 2013Minneapolis MN Bill is being drafted and would affect state and commercial buildings 2013 thru 2016Boulder CO City recruits commercial building owners to develop standard procedures for energy performance ratings and regulations for 2014Legislation requiring benchmarking of energy use and public disclosure thereof

1

Competitors No single Company with more than 10% of market share *(*our research based on available data)

Companies in Local MarketsNo Company with repeatable and scalable Integrated Solution Model

Competition in the USNext Step Living - MA (raised $18.2M in December 2012)Green Homes America FL, SC, NY, NJ, VA, CA, UTThe Mark Group PA, NJ, DE Well Home CA, CO, MD, MI, NH, MA, PA (Not Integrated Solution)

Mom and Pops Nation WideSell only one product or service, such as a Solar Panel Installer -Narrow focus with no whole building approach

Even at the pace of each company implementing 20,000 projects per year, treating tens of millions of homes and businesses represents markets with room for many players. Value proposition for Residential

Certified PropertyComfort Health Performance Bottom line BenefitsEnergy savings, money savingsSafer for residentsComfortable temperaturesBetter air to avoid asthma and allergy problemsSafeguards from escalating bills and extreme weatherSpend less on energy, more on food and health careEcoSmart Certified PropertyProblemToxic leaky houseLousy airHigh energy billsCold and hot rooms

SolutionEcoSmart Integrated SolutionAssessmentEngineered ScopingFinancial Solutions PackageUpgradesFast implementationVerifying PerformanceMaintaining PerformanceFutureFit Your Home

Value proposition for CommercialCertified PropertyPerformance HealthValueBottom line BenefitsHealthier employeesLess absence due to illnessFewer restricted activity daysHigher productivityCorporate Environmental Stewardship and Competitive EdgeLower Costs of Maintenance and OperationLonger contracts and higher retentionProblemHigh energy costCold or hot areasLow air qualityToxic workplaceLow productivity environmentSolutionEcoSmart Energy CoachingRapid and complete assessmentOptimal Engineered Priced and Actionable ScopeFinancial Solutions PackageFaster implementation at least costReliable certified performance

Validation from important market playerProspect:WaypointSegment: REO, Rental to Rehab Portfolio: 1,800 homes growing at the rate of 35 homes/day with $1B secured Jan. 2012 to buy moreWe need to come up with a set of energy standards, some sort of certification to communicate to renters

..being more comfortable, feeling better with good air quality, and being protected from rising energy costs, renters stay longer in their homes. They are more reliable clients, leading to lower costs for us.

Certified homes will be more attractive to renters and ultimately more attractive to buyersReal-time 2012 Example$ 31,000,000 Contract opportunity for EcoSmart Certified Properties over 5 yearsWhat they say:Colin Wiel Co FounderGary Beasley Managing DirectorValue proposition forProblemNo in-house capability for one-stop Building Performance solutions Fast-changing technologies and practicesNeed for verified results with tangible measurements and returns

SolutionEcoSmart Platform provides rapid, consistent quality conversion:Rapid and complete assessmentOptimal Engineered, Priced and Actionable ScopeFaster implementation at least costReliable certified performanceTraining and certification of workforce

Bottom line BenefitsOptimal results at controlled budgets and short implementation timesTenants who pay lower energy bills dont fall behind on rentHappier tenants stay longerHouses dont stay empty as long

Property Management CompaniesAnd Real Estate Owned Portfolio Companies Green properties rent and sell faster, and for more. - Early EcoSmart investor and Boulder landlordFinancial Value Proposition for InvestorsMarketsAddressable markets in the Trillion dollars rangeMarket is durable and trends to expansionMinimal current competition Low risk of competition based on piracy or artificially underpriced services

CompanyEric Doubs connections and national reputation continue to generate opportunitiesWell positioned for large contracts in the hundred million dollar range Because of reputation Company has been attracting top talent in the US Sustainable Competitive AdvantageESH has first-mover advantagesESH has revenue based on a repeatable and scalable model Software and I.P. protectable

Investment Returns Potential for rapid growth in market shareMarket share growth generates shareholder value5X to 7X returns expected for investors in year 5

Good for Profit (Bottom Line One)Financing abundant to support Building Performance UpgradesVery large market opportunitiesIndustry leadership Right product at the right timeTriple Bottom Line for InvestorsGood for People (Bottom Line Two)IndividualsGood jobs that will always stay in AmericaComfort, health and savingsGreater stability for homeowners in times of hardshipCommunity and CountryEconomic VitalityEnergy Independence and National SecurityGood for the Planet (Bottom Line Three)Drastically reduces gross Carbon Footprint of buildings that account for:72% of all electricity40% of primary energy39% of carbon emissionsBy improving the energy efficiency of American homes by 25%, we accomplish the equivalent of taking 1/2 of all passenger cars off the road.Phase I (nearing completion)EcoSmart upgrades over 165 test field homesDevelops and proves systems for licensable platformPositions for multi-million-dollar contracts Quality of services is illustrated by high rates of customer satisfaction Seed Round: Over $1.2M raisedObjectives Achieved: Launch and Develop Business Model; Build Up Revenue Stream Opportunities; Producing & Positioning

The next capital leverages talent and converts existing and new market opportunities into accelerating revenuesProject Manager-Based Jobs:>$30kHome Performance Upgrades: