Great CanadianEnergy Efficiency Show

Presentation to the CEEA Finance Committee

September 4, 2014

INTRODUCING THE GREAT CANADIAN ENERGY EFFICIENCY SHOW (GCEES)

• The GCEES will reinforce and educate right across Canada promoting energy efficiency objectives, programs and education.

• The Canadian Energy Efficiency Alliance is ideally positioned to lead the development of GCEES.

• The policy framework and timing is ideal in 2015 to launch a premier consumer show beginning in Toronto focused on energy efficiency as part of a national series of shows including Montreal and Vancouver.

The Shows

• Multiple Shows: To reflect CEEA’s national reach and promote EE to consumers - a national strategy involving a series of branded consumer shows in different strategic locations across Canada.

• These regional shows can focus on province-specific utilities and programs (BC Hydro, OPA) while also including national brands, retailers and service providers.

• September/October 2015: Toronto (International Centre)

• March 2016: Vancouver (Vancouver Convention Centre)

• May 2016: Montréal (Palais de congrès)

• A National series supports developing national media partners and sponsors such as major retailers (Canadian Tire, WalMart, Home Depot, Rona) and banks (Scotia, TD, RBC)

An Educational Platform

• Opening – a headliner or guest speaker with national recognition and resonance with consumers; eg: Steve Smith (AKA Red Green Show) , Mike Holmes, the Property Brothers

• Educational Sessions can be organized by sector/cluster (ie insulation, lighting, HVAC) and focused around core groupings of interests: Consumers, Schools, Small Business Owners

• Opportunities for exhibitors to provide education, tips and discounts/coupons to participants: energy utilities, government agencies and programs, service providers, green renovators, home builders, financiers, etc…

An Educational Platform (continued)

Demonstrations of energy efficiency best practices and future technology including educators – e.g. Colleges - Seneca, Humber, Algonquin - net zero home model, The Eco-House, other innovations and scientific research related to energy efficiency.

Competitive Analysis

• There currently is no national or regional consumer-focused trade show that focuses exclusively on energy efficiency education and represents a “demand gap” that the GCEES will fill in the market.

• Existing “competition” including general/broad eco/lifestyle shows such as the Green Living Show (Toronto) Spring; is a broad consumer show that does contain energy efficiency elements.

• Consumer and business trade fairs exist hosted by groups such as Home Builders, Canadian Construction Association and sector specific trade shows (home, garden or cottage) – their focus is B to B and not exclusive to energy efficiency.

• Renewable Energy Trade Shows (CanSIA/CanWEA), All Energy and other business shows are not consumer or energy efficiency focused.

Setting The Stage

Based on work completed to date, meetings and discussions there is consensus that the GCEES has the potential to be a successful consumer show that provides benefits to CEEA, Government Officials, Energy Industry Regulators and the general public and is a “needed” event that is being promoted at the right time from a consumer-driven and government policy and regulations framework.

David Dunlop and Walter Willett have over 40 years of combined trade show, consumer and business event experience along with industry contacts and knowledge to successfully manage and execute the GCEES, in collaboration with a CEEA lead Advisory Council and other business partners.

About the Principals

David Dunlop has been involved in serious event organization since 1967. From 1977 to 1987, he was Deputy Chief of Protocol with the federal Department of Foreign Affairs and International Trade and was responsible for all State Visits to Canada. Since 1987 he has been President of D. R. Dunlop & Associates, Inc. (DRDA), event planning and management. Coordinating large-scale exhibits and multifaceted trade shows began in 2002 with the Canadian Nuclear Association. In 2007, DRDA took the small exhibits portion of the Canadian Solar Industries Association’s annual national solar conference (and later seven regional conferences) and developed it into a prominent and influential, fully-realised trade show, that attracted 4200 delegates and featured 225 exhibitors (with 500 tonnes of exhibit equipment), in 408 booth spaces. Mr Dunlop maintains contact with a comprehensive list of high-level service providers in the industry that he will call upon for future services. For a full biography visit: http://www.drdunlopandassociates.com/drdasite/principal-players.

About the Principals

Walter Willett has been involved in the tourism, events and hospitality business since 1994. His event planning and management experience began in the hotel industry as a sales manager responsible for coordinating venue contracts and logistics for business meetings and events. From 2002-2006 Mr. Willett was the Director General of a historical village tourism attraction that hosted a number of significant annual public events including Canada Day celebrations and Quebec’s largest bluegrass music festival that attracted over 5,000 spectators, 50 vendors and 25 bands over a weeklong event. Mr. Willett joined the Hotel Association of Canada in 2007 and was responsible for overseeing the Annual Conference that attracted over 500 industry executives and 100 exhibitors. Between 2010-2013 Mr. Willett was responsible for the Canadian Wind Energy Association Annual Conference and Exhibition with an annual budget of nearly $3million featuring 250+ exhibitors, 2500 attendees and 125 speakers. Mr Willett is a member of the Professional Conference Managers Association (PCMA), Canadian Society of Association Executives (CSAE) and serves as a voluntary director for the Canadian Foundation for Animal Assisted Support Services (CFAASS).

Governance & Legal Framework

Initial discussions with the DRDA’s business lawyer, Paul Salvatore of Low Murchison Radnoff, and DRDA’s business accountant, Brent Hiscoe of McIntyre & Associates advise that David Dunlop and Walter Willett form a for-profit corporation. Shares in the company will be held by DRD and WW. The business name is the Great Canadian Energy Efficiency Show.

A comprehensive legal agreement between the corporation and CEEA will detail the way the Great Canadian Energy Efficiency Show will function under the guidance and advice of CEEA and how CEEA will benefit financially both now and in the future.

Pro Forma BudgetRevenues

Ticket Sales $ 75,000

Exhibitor Sales $ 500,000

Major Sponsors $ 500,000

Secondary Sponsors $ 100,000

Sponsored Opportunities $ 100,000

Total Revenues $ 1,275,000

Expenses

Consultant & Professional Fees $ 192,500

Venue and Operations $ 125,000

Communications/Marketing $ 370,000

Speaker Fees $ 50,000

Insurance $ 30,000

Miscellaneous $ 30,000

Total Expenses $ 797,500 EBIDTA $ 477,500

Earnings and CEEA’s Advantage

What does this potential $477,500 amount represent? This is the Great Canadian Energy Efficiency Show’s profits from revenues less expenses. The Earnings represent payments, retained earnings and profit sharing:

• Payments to CEEA as agreed to in the CEEA – GCEES agreement• Earnings retained by the corporation to finance further Shows• Profit sharing between CEEA and the GCEES according to an agreed

formula.  Note: CEEA will be guaranteed an amount from the show earnings plus a sharing of the profits following the closing of each Great Canadian Energy Efficiency Show’s books.

Financial Risk Assessment

Revenue and Cash Flow Risks 

1. Major Sponsors – unable to secure major sponsors initially to fund immediate cash flow requirements

2. Exhibition Pricing model needs to be validated with potential clients

3. Cash Flow – Start Up will require a capital injection to secure venue and support operations and communications efforts until revenues begin.

Operational Risks 

4. Full cost of Communications/Marketing work will not be completed without RFP process

5. Full cost of venue including payment terms will not be completed without RFP process

6. Requirement to source suppliers capable of delivering our requirements for the show within our budget

CEEA Advisory Council

It will be beneficial for the GCEES to put in place an “Advisory Council” comprised of CEEA member organizations, government and partners. CEEA would be responsible for recruitment, selection and support/oversight of the AC.

Composition Ideally the Advisory Council would represent a cross section of stakeholders —industry, government, associations, other NGO's (i.e. Canadian Standards Assoc). The preference would be in recruiting senior leadership, decision makers and/or influencers that could assist in providing counsel, advice and input beneficial to show management.

Mandate1. Exhibitor Criteria. AC would advise and recommend on structure of the

criteria of approving/selecting vendors for the exhibition based on energy efficiency best practices and recognized programs.

2. Education Topics and Speakers. AC would advise and assist in development of the show program topics, recommended key note speakers.

3. Profile. AC would be lead by high profile "honorary co-chairs" of the show that lend brand credibility and knowledge.

4. Government Support. AC could include representatives from the Minister of Energy’s office, Federal government, and appropriate agencies to act as facilitators and communicators with appropriate government departments. 

CEEA Branding & Support

The GCEES would be “branded” as an official/officially sanctioned CEEA event and CEEA logo, trademarks and trade name would be implemented and utilized in all marketing, communications and outreach efforts made by the GCEES.

CEEA would be involved in and approve all public branding, communications and government relations work with respect to the GCEES

CEEA, via the GCEES Advisory Council, would approve and advise on appropriate programming, content and exhibition criteria.

CEEA would commit appropriate marketing, promotion and management activities to assist the GCEES management in the successful implementation of the show. 

CEEA would provide support to major sponsorship presentations including contacts, recruitment and marketing.

Marketing Strategy, Positioning, GR Strategy

It is anticipated that a Marketing/Communications/GR Firm would be selected (following an RFP process) with a mandate to formulate and execute (in collaboration with show management) a complete marketing, positioning and government relations strategy for the show.

The pillars of the mandate will include:

• Positioning of the GCEES show as the premier consumer show focused on energy efficiency in Canada.

• Development of a government relations strategy to attract and gain support from a range of federal, provincial and municipal public officials and appropriate agencies with a link to energy efficiency policy and communications

• Marketing of the show with a focus on the Greater Toronto Area (416/905 area codes) using combination of print, digital and social media marketing campaigns.

• Developing a comprehensive approach to sponsorship recruitment and sales to key major corporate accounts (Eg: Enbridge, Union Gas, Walmart, Home Depot, etc.).

Next Steps

Presentation to CEEA Board for approval and agreement in principal

In the meantime

• David Dunlop and Walter Willett are in the process of incorporating under the name Great Canadian Energy Efficiency Show

• Drafting begins on a legal agreement between the Corporation and CEEA to include each side’s interests both in how CEEA will advise and direct the Great Canadian Energy Efficiency Show, and in how payments to CEEA will be made plus the division of profits

AND NOW - ON TO THE PRODUCTION OF THE GREAT CANADIAN ENERGY EFFICIENCY SHOW !

ENERGY EFFICIENCY… THE FUTURE IS NOW!