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1 CAPITALIZING ON THE ENERGY INDUSTRY ForceField Energy Inc. NASDAQ: FNRG

CAPITALIZING ON THE ENERGY INDUSTRY

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CAPITALIZING ON THE ENERGY INDUSTRY. ForceField Energy Inc. NASDAQ : FNRG. Forward-Looking Statements. - PowerPoint PPT Presentation

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Page 1: CAPITALIZING ON THE  ENERGY INDUSTRY

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CAPITALIZING ON THE ENERGY INDUSTRYForceField Energy Inc.NASDAQ: FNRG

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Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward-looking. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the Company's control, which may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include (i) the Company’s ability to estimate 2014 revenue guidance; (ii) the Company’s ability to obtain adequate financing to achieve its LED revenue objectives; (iii) the successful installation and efficacy of the Company’s LED lighting products; (iv) the successful integration of ALD’s operations into ForceField Energy; and (v) other factors without limitation, which are detailed in documents that we file from time to time with the Securities and Exchange Commission and available at www.sec.gov. For a written description of these factors, see the section titled “Risk Factors” in the Company’s Form 10-K for the fiscal year ended December 31, 2013 and any updating information included in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.

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ForceField Business Profile

ForceField Energy is a worldwide distributor of commercial light emitting diode (LED) products with concentration of its activity within North, Central and Latin America, the Caribbean and parts of Europe for many leading LED manufacturers. Company Strengths•Source products from numerous high quality suppliers •Completed recent acquisition of established leading commercial lighting company•Innovative financing solutions allowing off book with no upfront payment on an accelerated timeline.

PRIMARY BUSINESS SEGMENT: LED LIGHTING SOLUTIONS

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Public Company Profile “FNRG” NASDAQ

16.2 million

25.8%

$97 million

920,000

$12-15 million

A. Management shares voluntarily locked up since 2010 until end of 2014B. All warrants exercisable from $4.00 - $5.00 per share and expire between August 2014 and August 2015.

Shares Outstanding 8/11/14 Management Share Ownership (A) Market Cap Warrants Outstanding (B) 2014 Revenue Guidance

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Business Objectives

Develop and expand current business segment generating organic growth

Embark on a series of synergistic acquisitions that broadens ForceField’s reach, create and acquire additional revenue streams and opportunities as well diversifying our customer base both domestically and internationally.

Leverage corporate overhead to maximize earnings

Generate superior profitability and stock appreciation for our shareholders.

Create value and position the company for continuous growth.

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LED Lighting Segment In April 2014 we completed the acquisition of an award-winning and highly

respected LED commercial lighting distributor, American Lighting & Distribution (“ALD”) based in San Diego, California

• Superb management team• Provides infrastructure and installation support to ForceField’s

existing and future opportunities• Track record of success over 28 year period• $7.0 million in unaudited revenues and $900,000 in adjusted EBITDA

without receiving support in providing LED customer financing from its equity owners

Entered into LOI to complete an acquisition of prominent East Coast based LED company ESCO Energy Services. Expected to be completed by October 2014

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History & Overview In Business Since 1986

Founded Initially As Light Bulb Distribution Business Neil Miller & Tracy DeBerry Bought The Business in 2000 Sold Business in 2003 to 17th Street ALD

Licensed Electrical Contractor California C10 License 818848 All Projects Focused On Energy Efficient Lighting

Headquartered in San Diego Install Projects Across Entire State of California and various states

on the West coast. Sales Team & Installers Also Located in Northern CA

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American Lighting Strengths

Unique Business Model – Built For Success In This Industry Sales People & Installers Paid As Variable Costs Lean Organization – Built For Speed & Efficiency

25 Years Experience With A Solid Reputation In Commercial Lighting Impeccable Reputation In Industry Recognized Leader in California Rebate Programs Awarded “Top Contractor” By PGE, SCE, SDGE

Aggressive Marketing Program Custom Tailored Marketing Campaigns Google AdWords / SEO Much More Aggressive Than Competitors

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Highlights

Long History Of Success & Strong Relationships With California Utilities

Recognized As “Top Contractor” By SDGE, SCE, and PGE

Full Infrastructure Including Management, Installation, And Well-Trained Sales & Marketing Team

Installed Base Of Over 20,000 Satisfied Customers – Most Of Whom Are Potential Recurring Customers In Future Years

28 Year History In The Industry.Over 20,000 Customers Served.28 Year History In The Industry.Over 20,000 Customers Served.

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Over 20,000 Commercial Customers

Sampling of Customers

Military Bases & Government Projects Schools, Colleges, & Hosgitals Parking Garages & Lots T8 Commercial Projects

• Camp Pendleton • Santee School District • Pacific Gas & Electric • Qualcomm Stadium

• City of Santa Clara • Lakeside School District • Marriott - Numerous sites • Northrop Grumman

• Port Hueneme Base • Miramar College • MGM Hotels - Las Vegas • Super King Grocery

• Miramar Air Station • 42nd Street Navy

• Placer Unified School District

• University San Diego

• Westfield Mall

• Padres Parking Garage

• Dixieline Lumber

• lnvitrogen

• City of San Diego Buildings • San Diego State University • Hyatt • Sentre Partners • Sharp Mary Birch Hospital • Kaiser Permanente • US Traffic

Highbay Projects • Torrey Pines High School • CBRE • Church of Latter Day Saints

• Home Depot • Over 300 Schools • ACE Parking • Everything a Deal Stores

• Lowe's Distribution Center • General Atomics

• Whirlpool Hotels Auto Dealershigs • John Wayne Airport

• Sony • International Paper

• San Diego Bayfront Hilton

• Beverly Hills Four Seasons

• BMW Concord

• Bob Baker Jeep

• PCC Logistics

• CBS Building

• ProLogis • Hyatt Newport Beach • Concord Chevrolet • Fox Studios

• American Building Supply • Portland Marriott • Fresno Mercedes • CBRE - Numerous Buildings

• Shasta Beverage • Sheraton Cerritos • Lake Elsinore Ford • Sharp Hospital

• MOR Furniture • Embassy Suites - La Jolla • Winter Chevrolet & Honda • El Cajon Library

• Atomic Box • Doubletree - San Jose • Fiat of Palm Springs • Bumble Bee Foods

• Union Tribune • Residence Inn - La Jolla • Metro Honda • California Bank & Trust

• Ducommun Aerospace • Normandie Casino • Penske • Motorola

• Colliers • Fairmont Newport Beach • Frank Toyota • Qualcomm

• CBRE • Silver Legacy Casino • Walnut Creek Mercedes • Solar Turbines

• Walmart • Luxe Hotel • Peninsula lnfiniti • Kearney Mesa Detention Facility • Many Others • Many Others • Many Others • Many Others

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Project Highlights:• Comprehensive Lighting Upgrade: - LED Lamps & Fixtures, 25 Watt T8’s• Over 6000 LED Lamps Installed• $150K In Annual Energy Savings• 13 Month Payback

“The project turned out superb. What a great look! Are we satisfied? By all means and then a little more. Installation team was first class and produced quality work. Our hat is off to Brett (on site manager). Feel free to use as a reference – we would be honored to share your service.” - John Thoennes, Dir Operations

Customer Testimonial

BEFORE AFTER

Success StoryHotel LED Lighting

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Success StoryLarge Highbay Building Upgrade

• Metal halide fixtures replaced with T5’s.• Fixture wattage reduced from 465 to 216 W.• Occupancy sensors for increased savings.• Longer life lamps = reduced maintenance.• Light levels increased.• Quality of lighting improved.• $40,000 Annual Savings!• 4 Month Payback.

Project Highlights

BEFORE AFTER

285 Fixtures = $40K Annual Savings

• 260,429 kWh’s Saved• 372,413 CO2 lbs Emission Reduced• 36 Equivalent Forest Acres Added• 23 Equivalent Cars Removed

Environmental Benefits

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Project Highlights • Before: 400 Watt Metal Halide Fixtures• After: 4 Lamp T5 Fluorescent Fixtures, 216 Watts• 53% Energy Savings Per Fixture!• Much Brighter & Cleaner Look• 40,000 Hour Rated Lamp Life• Reduced Maintenance Costs

Customer Testimonials“The new outdoor lighting has made a huge improvement for our staff working after daylight hours. All of us at the Dealership appreciate the organized installation of both the interior and exterior lighting as there were no interruptions to our daily routines.” - Judy Dobbert, General Manager

BEFORE AFTER

Success StoryAuto Dealership Upgrade

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Growth Opportunities

• California Schools – Prop 39• California Voters Approved $5.75B For Energy Efficiency in

Schools

• Spending Budget = $550M Per Year

• Funding Approved For Five Years – Beginning in 2014

• Projects Include Lighting Upgrades & Other Energy Efficient Projects

• Money Is Awarded To Schools & Community Colleges

• Prop 39 = http://energy.ca.gov/efficiency/proposition39/index.html

Prop 39 Is Biggest Stimulus Package Ever For Lighting In California(And No One Has Installed More Schools Than We Have)

Prop 39 Is Biggest Stimulus Package Ever For Lighting In California(And No One Has Installed More Schools Than We Have)

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FORCEFIELD’S STRENGTHS

• All Products Holds A Series Of Design and Utility Patents, Certificates Including ISO9001, CE, Rohs, CSA, UL, ICE, DLC and Other Qualifications

• Has A Complete And Wide Range Of Products at Highly Competitive Pricing Levels And Can Very Rapidly Custom Build Specialty Led Products For Specific Projects

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Advantages of LED Lights

The LED light is considered “green” because of the absence of dangerous chemicals and minerals with a significant reduction in energy consumption. No Mercury, No UV, No Health Risk and No Pollution

90% of the energy pumped through an incandescent light bulb is wasted as heat; that’s why traditional bulbs are so hot to the touch.

LED’s will reduce energy consumption by up to 50-85%. The paybacks on LED replacements of commercial lighting are very short (in most cases two

years or less) – plus there are credits and incentive in place for consumer to change to LED. 50,000 hour rated life. LEDs are better at placing light in a single direction than incandescent or fluorescent bulbs.

Because of their directional output, they have unique features that can be exploited by clever designs.

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LED Market: Size & Key Drivers

The phase-out of incandescent light is already underway with the 100 watt bulb and will end in 2014 with the 40 watt bulb.

According to a DOE Study “Energy Savings Potential of Solid-State Lighting in General Illumination Applications 2010-2030”, there are over 7 billion lamps of varying types in US buildings.

The total dollar value of replacing every Commercial and Industrial Fluorescent and HID lamp Worldwide over the

next ten years is estimated to approach $1 trillion dollars.

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Source: 2011 Energy Efficiency Indicator: IFMA Partner results International Facility Management Association

Importance of LED Lighting

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LED Marketing Strategy

Focus on High ROI products with widest use in the Commercial, Industrial and Institutional sectors.

Target customers where economics carry the day and where utility costs and incentives may be the highest such as corporations, hospitals and institutions where lighting and a good “green image” are important.

Focus attention on larger customers who can undertake an ongoing LED roll-out over many years with large and continuous volumes.

Leverage existing business relationships to identify locations for immediate trials in high visibility location that will attract publicity for the Company.

Provide turnkey solutions to end users incorporating all aspect of LED installation Provide third party financing at competitive rates and lease financing based upon a

percentage of revenues

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Revenue Guidance and Large Project Opportunities

Revenue Guidance for 2014: The Company projects $12.0 million to $15.0 million in

consolidated revenue for 2014. All of the revenue included in guidance is projected to come from the Company’s LED operating segment which includes ALD.

Opportunities in Large Projects The above revenue guidance for 2014 does not include

any potential revenue from numerous LED projects with bids outstanding amounting to approximately $100 million. There are no assurances that the Company will win any of these bids.

   

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Synergistic Product Offerings On July 30, 2014 entered into a cross marketing with New Jersey

based Noveda Technologies a leader in cloud based real time energy management systems

Noveda products, installed in over 3,500 locations world-wide are also used by several Fortune 100 global corporations in key market segments including big box retail, financial services, commercial, industrial, education and the government. Noveda customers also include leading utility companies PSE&G and Hydro Ottawa, as well as one of the nation’s most powerful environmental groups, NRDC

As part of the agreement, both companies will offer an extended and complimentary line of solutions to their respective customers including LED lighting solutions, advanced lighting controls, real- time monitoring

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Key Differentiators in Business Model

World class customer profile

Ability to get to market at competitive pricing structure –remain “nimble” by distributing all competitive products rather than being burdened with supporting an LED factory

Low overhead structure

Very significant upside through bids on large projects

Innovative financing solutions

NOT JUST AN LED COMPANY - NUMEROUS SYNERGISTIC OPPORTUNITIES EXIST

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Investment Highlights Experienced and highly motivated management team

with a track record of building shareholder value. Management has completed over 30 M&A transactions during their careers

Ability to access decision makers at high profile companies without incurring significant infrastructure expense

Can achieve business plan with minimal future share price dilution

Clean cap structure that lends itself to share price appreciation

Low management compensation 25.8% ownership Interests completely aligned with shareholders