Catch the Wind Inc (CTW.V) Investor Presentation

8/8/2019 Catch the Wind Inc (CTW.V) Investor Presentation

1/27

Copyright 2010 Catch the Wind, Inc. All rights reserved.

Catch the Wind

Investor PresentationDecember 2010

Making Wind Energy Profitable


2/27


This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Certain statements in this presentation may constitute forward-looking statements which involve known and unknown risks,

uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to bematerially different from any future results, performance or achievements expressed or implied by such forward-lookingstatements. When used in this presentation, such statements use such words as may, will, expect, continue, believe,

plan, intend, would, could, should, anticipate and other similar terminology. These statements reflect current assumptionsand expectations regarding future events and operating performance and speak only as of the date of this presentation.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance orresults, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors couldcause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to,the factors discussed under the Risk Factors section of the filing statement the Company filed with regulatory authorities on

September 9, 2008. Additional risk factors can be found in the Company's continuous disclosure filings, reports and other filingswith securities commissions and regulatory authorities in Canada and filed under the Company's profile on SEDAR atwww.sedar.com.

Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable

assumptions, neither we, nor the placement agents, can assure investors our actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events orcircumstances.

Forward Looking Statements

2


3/27


Corporate Overview

Primary product is the Vindicator laser wind sensor(LWS) and turbine control system Evolved from laser technology first developed for the

aerospace industry for measuring air speed and direction

Only nacelle-mounted, LIDAR (Light Detection and Ranging)based wind sensor available in the market, that canprovide wind speed and direction

Independent testing has been completed andcommercialization is now underway

Complementary products include WindSeekerTM andRacers Edge wind measurement devices

Hand-held units providing accurate wind speed anddirection measurements up to 1000 m away

Includes government, weather, entertainment and sportsverticals opportunities

Only hand-held LIDAR in the world

Catch the Wind is a technology company that has developed and iscommercializing a laser wind sensor and turbine control system. Thecombined solution enables accurate and proactive alignment of any windturbine and has proven to increase power output and reduce stress onkey mechanical components

3


4/27


Timeline

4


5/27


Wind Turbine ControlPerformance Enhancement and Durability

Wind turbines are designed to be facing directly intothe wind

Wind is highly variable and often unpredictableparticularly over short periods of time

A modern turbines nacelle can pivot left and right(yaw) to compensate for wind direction changes

Important aspect of keeping turbines operatingefficiently

Wind turbines are guided by control systems usingdata from wind measurement instruments mountedat the rear of the nacelle

Traditional wind measurement instruments gaugespeed and direction after the air has passed through

the distorting effect of a turbines massive rotatingblades

This form of reactive control is like driving your car bylooking into your rear view mirror

Yaw misalignments, caused by measuring the distortedflow, have been measured as high as 30-45 degrees

CFD simula+on shows distorted wind flow in wake of turbine blades 5


6/27


Wind Turbine ControlBringing Aerospace Sophistication to the Wind Energy Industry

Catch the Winds Vindicator LWS uses multipleeye-safe laser beams to accurately map the windbefore it passes through a turbines rotor

Vindicator LWS provides wind speed/directionmeasurements of undisturbed wind up to 300m infront of the turbine

Vindicator LWS measurements are input into aproprietary control algorithm that allows a turbine tore-orient before the wind arrives

Vindicator LWS allows turbines to capturemaximum available power in turbulent conditions

and minimizes mechanical damage from recurringmisalignment at high wind speeds

Vindicator LWS uses lasers to look beyond distor+ng affects of turbines

blades and measure wind in front of the turbine

The hemispherical cup anemometer (original 1846 design) and modern

turbine applica+ons on the rear of the nacelle

6


7/27


VindicatorLaser Wind Sensor

Aerospace grade laser sensors andtechnology

Fully integrated wind turbine control systemHow it Works:1. Three laser beams pulse 1000 times per

second

2. Laser energy reflects off dust particles in thewind and changes color according to their

velocity

3. Sensors detect the color change andcalculate wind speed and direction

4. Measurements are fed into proprietary controlalgorithm which outputs signals that can be

entered into a turbines existing control

system hardware

CTWs VindicatorLWS utilizes forward-looking wind sensors to read theapproaching wind and control the wind turbine proactively to enable anoptimal operation

Vindicator LWS mounted on a GE 1.5 MW Wind Turbine

7


8/27


Cup anemometers and wind vanes are the most prevalent wind measurement technologies currently available Have proven highly effective and reliable for meteorological and wind resource applications

In undisturbed air conditions, measurements obtained from cup anemometers and wind vanes exhibit almost perfectcorrelation with VindicatorLWS measurements (R2 > 0.99)

Cup and sonic anemometers are not suitable for turbine-mounted yaw guidance because the distorting effect of theturbines spinning rotor interferes with their ability to take accurate measurements

Turbine manufacturers have incorporated mathematical models to compensate for the rotor distortion; but given the random nature of thedistortion (see chart on bottom right), these have proven to be only minimally effective

VindicatorLWS obtains measurements in frontof the turbine and is unaffected by the spinning rotors distorting effects

Vindicator LWSMeasurement Accuracy

Wind Direction Correlation

Wind Speed Correlation

R2 = 0.99

R2 = 0.99

Data supplied from independent 3rd party testingconducted by Helimax Energy Inc. in April 2010

Difference in Wind Direction Measurements When Mounted On Turbine(1)Sonic Anemometer vs. VindicatorLWS

Sonic Anemometer: after-market ultrasonic device, MEASNET-calibrated, IEC-certified(1) As measured by a European wind turbine OEM during trial.

Forward looking, undistorted wind measurements obtained by Vindicator LWS indicate

that turbines yaw can be more than 20 degrees misaligned 8


9/27


Vindicator LWSValue Proposition

Present Value of Incremental Cash Flows from VindicatorLWS Installation(1)

(1) Assumes 10% increase in power output, PPA price of $65/MW (0.4% annual inflation adjustment, 20 year turbine life, discount

rate of 10%

Significant additional value exists, but is not incorporated into the above analysis:

Extended turbine lifetime Added value through reduced O&M costs Typical O&M costs:

1 gearbox replacement ~$500,000 1 main bearing replacement ~$45,000 1 blade replacement ~$200,000 1 day (24 hrs) of downtime ~$1,200 - $2,400 in lost revenue per turbine 1 day crane rental ~$25,00 - 50,000

9


10/27


11/27


Software and control algorithm optimization expected to further enhance performance Number of yaw adjustments per period was fixed during initial trial; potential for increased

pace of yaw re-alignment to further bolster performance enhancement

Field TrialsNebraska Public Power District

Result: 10.7% Increase in Power Output

Significant Upside Potential Remains:

11


12/27


Field TrialsNebraska Public Power District

Result: Up to 83% Reduction in Stress on Critical Mechanical Components (1)

WITHOUT VINDICATOR WITH VINDICATOR

Significant potential to boost wind farm IRRs by preventing or delaying replacement of mechanicalcomponents

1 gearbox replacement ~$500,000 1 main bearing replacement ~$45,000 1 blade replacement ~$200,000 1 day (24 hrs) of downtime ~$1,200 - $2,400 in lost revenue per turbine 1 day crane rental ~$25,00 - 50,000

12(1) Source: SwanTech (independent 3rd party). Based on reduction in stress loading measured by Random Friction Index .Level of stress reduction depends onspecific mechanical component.


13/27


Field Trials

Field trial underway on Nordex N-60 1.3 MW turbine at Cowley Ridge Results expected in December 2010

Largest wind energy producer in Canada with over 1000 MW operating wind capacity 30% of Canada's wind energy capacity Another 5,000 MW offshore and onshore capacity in development

Converting initial trial agreement into commercial proposal for multiple purchase options

Vindicator LWS unit installed on an operating Gamesa G8X 2.0MW wind turbine Gamesa, a worldwide leading wind turbine manufacturer based in Spain

13

Agreement originally with

Canadian Hydro Developers


14/27


Collaborative Research ProjectNational Renewable Energy Laboratory (US Department of Energy)

Projected launched in April 2010 Three year agreement allows for collaborative research

program with a pre-eminent wind research facility Optimizing Vindicator LWS wind speed and direction

measurement capabilities

Optimizing yaw and pitch control algorithms Exploring potential benefits of incorporating Vindicator LWS

technology into turbine design process

Catch the Wind has access to any intellectual property rightsstemming from the program

US DOE has identified increased capacity factors andreduced O&M costs as key drivers of goal to reach 20%

wind energy by 2030

Forecast 15% increase in capacity factor is required Forecast O&M costs will need to be reduced by 35%

Joint Evaluation of VindicatorLWS with National Renewable EnergyLaboratory (NREL) US Department of Energys Primary Wind ResearchLab

NRELs National Wind Technology Center located just southof Boulder, Colorado

14


15/27


Global Wind Turbine MarketDynamics Shifting in CTWs Favor

Significant growth expected over next 5 years; however, in many regions, high potential resources havealready been developed

Vindicator LWS brings previously marginal sites into an attractive region in terms of return profile Typical wind farm IRRs range between 9 15%; Vindicator LWS installation expected to add between 1 3 %(1)

Turbine manufacturers are transitioning towards building larger turbines for better economics Vestas V112 3 MW and V120 4.5 MW, Nordex 5M W, Enercon 7.5 MW As a fixed cost per turbine, Vindicator LWS value proposition is highly leveraged to size of turbines Increasing durability of mechanical components becomes more important in larger turbines

Renewable Energy Portfolio Standards are increasingly gaining prominence with Wind Energy as a keyfeature

US Department of Energy has publicly stated a goal of 20% wind power by 2030

Source: GWEC Global Wind 2009 Report

(1) Assumes 8-12% increase in power output, PPA price of $65-$80/MW, capacity factor 33%-37%, turbine size 1.5 - 3.0 MW 15


16/27


Industry AdoptionBuilding Momentum

Q2 2010 Q2 2011 2011 2012 and BeyondQ2 Q4 2010

OEM INTEGRATION

Turbine manufacturers

incorporate Vindicator

LWS into new turbinedesign and manufacturing

process

150+ Units Shipped

WIND FARMADOPTION

Purchase commitments

become active fromleading wind farm owners

and operators

~20 Units Shipped

VALIDATION

Independent 3rd party

performance

measurements conductedon customers turbines

CERTIFICATION

VindicatorLWS obtains

certification from

recognized authority5 independent 3rd partyevaluations currently

underway

~5 Units Shipped

Contingent purchaseagreement signed with 2

prominent wind farmoperators

Negotiations underwaywith companies operatingmore than 10,000 turbines,in total 750+ Units Shipped

Each Year

Phase II of joint evaluationcompleted with major OEM

Discussions currentlyunderway with several windturbine OEMs for productionline installation

16


17/27


BP Wind Energy North AmericaFinal Stage of Customer Validation

BP Wind Energy NA is a leading wind farm operator in NorthAmerica with over 1200 MW owned or operated

Fleet includes over 182 Vestas 1.5MW, 100 Clipper Liberty 2.5 MW, 50Vestas 3 MW turbines in operation ideal candidates for VindicatorLWS application

Two Vindicator LWS units purchased initially Both units to be installed on in-warranty turbines with approval of

manufacturers

Successful completion of trial period will trigger an additional order

Sales agreement signed with BP Wind Energy NA in June 2010, followingthe successful completion of the NPPD Field Trial in May 2010

17


18/27


enXcoFinal Stage of Customer Validation

enXco owns or operates more than 4000 MW of wind turbines 1,500 MW are currently off-warranty ~200 MW rolling off warranty each year 500 MW of renewable projects in development and construction each year

Single Vindicator LWS unit purchased initially and already installed on a GE 1.5 MWturbine

Upon successful completion of an evaluation period, enXco has agreed to purchaseadditional units

Subsidiary of EDF Energies Nouvelles Company, one of the largest wind farm operators inthe world

Sales agreement signed with enXco in July 2010 with a provision for thepurchase of additional VindicatorLWS upon successful performanceduring evaluation period

18


19/27


Sales PipelineWind Turbine Owners and Operators

Customer Project StatusInitialUnits

Additional Contingent and/or Optioned Orders

Total Turbines(Owned/Operated)*

NPPD Phase I Test Completed; Phase II In Progress 1 Y C

TransAlta Vindicator Installed & Collecting Data 2 Y A

BP Wind Energy Contract Signed 2 Y A

enXco / EDF Contract Signed 1 Y A

Global Renewable Energy Company Agreed to Terms in Principle 1 Y A

Mid-sized Canadian Utility Agreed to Terms in Principle 1 Y C

Emerging North American Operator Agreed to Terms in Principle 1 Y A

Leading Global Wind Farm Operator Agreed to Terms in Principle 1 Y A

Large North American Energy Company Negotiations Underway 1 Y B

Leading Renewable Energy Company Negotiations Underway 1 Y B

Canadian Renewable Energy Developer Negotiations Underway 1 Y B

Small Global Renewable Energy Developer Negotiations Underway 1 Y B

Total Units 14

Momentum from Operators and IPPs is Transla5ng into Serious Interest from Turbine

Manufacturers Looking for a Compe55ve Edge

Wind Turbine Manufacturers

Turbine Manufacturer Project StatusInitialUnits

Annual Wind TurbineProduction*

Leading Global OEM Sold 1 unit, Initial testing underway, Additional purchases expected early 2011 1 A

Gamesa Phase 1 test completed, Analyzing results 1 A

Leading Global OEM CTW facility visit, Strategic plan in progress 1 A

North American OEM Negotiating collaborative agreement B

European OEM Commercial negotiation in process 1 A

Large Global OEM Collaborating with CTW at customer site & potential others B

Total Units 4

*Wind Turbine Quantity Groups: Group A = 1000+ | Group B = 100-999 | Group C = 1-99


20/27


Secondary Markets Offshore Wind Assessment

Product: Vindicator LWS integrated into AXYS Technologies WindSentinelBuoy

Only laser based wind sensor on the market which can be used on afloating buoy in both shallow and deep water

CTWs proprietary motion offset software accurately adjusts for wave motion Replace traditional installed met masts which cost ~ $5 10 million

Guaranteed order for a minimum 47 units over the next 4 years Estimated market potential of 200 to 300 units per year

Onshore Wind Assessment Product: Vindicator LWS Natural extension of CTWs market focus Estimated market potential of 200 to 300 units per year

Other Wind Sensor Market Opportunities Products: Racers Edge LWS and Wind SeekerTM LWS Includes government, weather, entertainment and sports verticals

opportunities

20


21/27


ProductionAdding Scale and Rationalizing Costs

Modularized assembly process allows for capital efficiency assales and production ramp up

Current in-house capacity is 8 units a month Can be increased to 16 units a month without significant capital

expenditures

Just in time inventory management limits working capitalinvestment requirements

Certain long lead time components will be held in inventory to limitlead times for Catch the Winds customers

As sales ramp up, production and assembly will be transferred toan established contract manufacturer to maximize economies ofscale

Production agreement in place with BreconRidge leading fiber opticcontract manufacturer

Production process redesign to be completed in Q2 2011 Production costs will be cut by 35% as products are developed

specifically for turbine application rather than all-purpose beta units

Faster lead times Component miniaturization from Racers Edge LWS and Wind

SeekerTM LWS products will be recycled into Vindicator LWS

21


22/27


Use of ProceedsTransitioning into Vindicator LWS Commercialization

Item Amount Notes

Development andOperational Engineering

$4.7 MM

Manufacturing process and product redesignestimated to decrease unit costs by 35%

Focus has shifted to software optimizationand streamlining production process

General CorporatePurposes

$3.4 MM General corporate purposes

Technical CustomerSupport

$1.2 MM

Ongoing and projected field trials andfinalizing 3rd party validation

Initial sales require extensive involvementfrom Catch the Wind as unit is calibrated andoptimized for different turbines

Capital Expenditures $0.7 MMIncremental additions to manufacturing andmeasuring equipment

Total $10.0 MM

22


23/27


Technology PartnerOptical Air Data Systems, LLC

Optical Air Data Systems, LLC (OADS): Award winning defense contractor and leader in the high power fiber-optic laser business with

additional expertise in Doppler LIDAR Recognized small-business defense contractor for the US government

As a private business, OADS benefits from many government funding programs which have allowed it todevelop considerable in-house technological and manufacturing capabilities

$70 MM invested in developing the underlying technology and infrastructure Purpose-built OADS facility includes optics and electronics laboratories, environmental and dust test

chambers, linked computer design and fabrication, a full prototype machine shop, and a laser collimation

range

Comprehensive ability to design, develop, test and produce compact laser range finders, LIDARs, andDoppler LIDAR wind measurement systems internally

OADS possesses a world-class team of laser physicists, optical and electronics engineers,mathematicians and software engineers, and supporting technical staff

Catch the Wind has an ongoing technology licensing and outsourcingagreement with Optical Air Data Systems, LLC the parent company itspun off from in 2008

23


24/27


Management TeamPhil RogersPresident & CEO

Former Director of Special Projects, Lockheed Martin Skunk Works21 years experience as a defense contractor for the US government

Robin RogeActing CFO

Previously Controller for Government Micro Resources.25 years experience in audit, accounting and tax services

Claudia JaquesVP General Counsel

Previously Associate General Counsel, Corporate Securities at the FederalHome Loan Mortgage Corporation (Freddie Mac);14 years of corporate and securities law experience

William FetzerVP Business Development

Previously Major Program Manager at the Naval Air Systems Command,Consultant with Northrop Grumman, Litton PRC, Rockwell Collins Intl.10 years business development experience

Daniel LacroixVP Manufacturing

Previously VP Production at ITF Optical Technologies, VP Operations with SDP

Components20 years high technology manufacturing experience

24


25/27


Board of Directors

David GarmanDirector

Former U.S. Under Secretary of Energy

Assistant Secretary for Energy Efficiency and Renewable Energy.

Christopher LoweDirector

CFO of Noble Environmental Power

Extensive experience in the energy sector, including wind energy

Marty CrottyDirector

CEO of Upwind SolutionsFormer President of AES Wind Generation

Extensive renewable energy sector experience

Phil RogersDirector

President and CEO of Catch the Wind, Inc.20 years experience as a defense contractor for the US government

Former Director of Special Projects, Lockheed Martin Skunk Works

Alisa RogersDirector Co-Founder of Catch the Wind, Inc. and President of Optical Air Data Systems

Aerospace engineer and former Project Manager at Lockheed Martin

25


26/27


Catch the WindMarket Information

Ticker Symbol CTW-V

Exchange TSX Venture Exchange

Share PriceCurrent(1)

52 Week Low52 Week High

$0.48$0.37$3.00

Average Daily Volume 29,000

Analyst Coverage

Jacob SecuritiesNational Bank FinancialMackie Research Capital

Dundee Securities

Shares Outstanding 57.5 MM

Fully Diluted 64.1 MM

Market Capitalization $27.6 MM

Holders Institutions 46%Insiders 44%Retail 10%

26(1) Current as of October 25th, 2010


27/27


Investor Contact

Claudia JaquesVP General Counsel

Catch the Wind, Inc.

[email protected]

(703) 393-0754

27

Documents

Catch the Wind Inc (CTW.V) Investor Presentation