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Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Y1Q3 Board Meeting
Board of Directors19 February, 2014
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Summary ScorecardFocus Area Notes Status
Revenue Generation Only at 50% of target revenue. Focus on distributor program development Oct – Dec slowed growth but now on track; next kiosks will ramp up quickly due to pre-launch distributor development
Behind plan
Site Selection & Community Engagement
Sites 1-5 secured, leases all low cost except for Santo site;Site selection process started for next 10 sites in the North
On Track,Low Risk
Kiosk Deployments Next 4 kiosks 2 – 7 weeks behind schedule; all operational in April;Need more scalable process for predictable, cost-effective, compliant foundations
Behind schedule
Water Quality Management
No significant issues with water quality; Very good customer satisfaction with taste of water
On Track, Low Risk
Government Relations Business permits, local permits acquired; Moving forward with CFI tax exemption process
On Track, Low Risk
Personnel Key technical roles needed;Kiosk recruitment moving according to plan;Risk of eroding team dynamic upon movement to North
On Track, Medium Risk
Budget Management On budget for 2013, but only 50% of the costs kiosks 1-15 realized. Likely to be $500K over Feb 2013 budget to reach 20 kiosks
On Track, Medium Risk
Fundraising $500K grant closed; waiting formal USAID approval for $200K grant;$300K investor financing secured. Seeking additional $430K to close in May 2014
On Track, Medium Risk
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Budget vs. Actuals – Yearly Composite
Feb 2013 Budget Aug 2013 Forecast Actual/Forecasted Feb 2013 Budget Aug 2013 Forecast Actual/Forecasted
Overhead 1578840 1810285.87929552 1883539.03
Regional 0 111996.57 71831.04
Cap Ex 1113000 1200594.03 872781.483199999
Total $2,691,840 $3,122,876 $2,828,152
250,000
750,000
1,250,000
1,750,000
2,250,000
2,750,000
3,250,000
$2,691,840
$3,122,876
$2,828,152
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Budget vs. Actuals – Overall Budget by Quarter
Q1 Q2 Q3 Q4
Feb. 2013 Budget 820660 577960 579160 714060
Aug. 2013 Revised Budget 1039431.6 315839.5 975656.299295524 791949.08
Actuals 1054752.67 323687.88 804871.619999999 644839.3832
100,000
300,000
500,000
700,000
900,000
1,100,000
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
1 Year Cash Forecast
Q1 Cash In Q1 Cash Out Q2 Cash In Q2 Cash Out Q3 Cash In Q3 Cash Out Q4 Forecasted Cash In
Q4 Forecasted Cash Out
Q1 Cash In Q1 Cash Out Q2 Cash In Q2 Cash Out Q3 Cash In Q3 Cash Out Q4 Forecasted Cash In
Q4 Forecasted Cash Out
Cash In Investor
2059795.44 NaN NaN 0 600000 NaN 70000 NaN
Cash In Grant
NaN NaN NaN NaN NaN NaN 500000 NaN
Cash in Earnings
NaN NaN NaN NaN NaN NaN 9000 NaN
Cash Out
NaN 1054752.67 NaN 323687.88 NaN 804871.619999999
NaN 644839.3832
Cash Remaining
2059795.44 1005042.77 1005042.77 681354.89 1281354.89 476483.27 1055483.27 410643.8868
250,000
750,000
1,250,000
1,750,000
2,250,000
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
15-Kiosk Budget vs. Actuals
Feb. 2013 Aug. 2013 Spent + Forecasted
$1,113,000$1,230,000
$574,716
$772,353
1347069.5116106Over 15 kiosks, expected to overspend Aug. forecast by $117,070
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Kiosk 1 Sales Performance: Monthly
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
A typical Authorized Distributor. James in Luly
An Authorized distributor is a registered store with a community that has all the legal requirements such as:
• Patente• Proper building and capacity to grow• Acceptance in his community• Purchasing power• Desire to promote improve services within the community • Willingness and capacity to apply the programs develop by
DHOSA• Size of Communities with a 500 meter ring needs to be approx
200 homes.
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Tracking the distributors in the first 5-8 weeksQuantity of 5 gallons jugs sold monthly December January February
*** ExtrapolatedTargets
James 225 295 (223) 348 500
Judette 118 105 (119) 185 500
Pasteur Yves 838 1030 (707) 1100
1500
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Entrepreneurial Ecosystem Value Added Services and Higher Volumes
• dloHaiti focuses on core competence: production and water quality
• Distribution via entrepreneurs
• Creates opportunities for entrepreneurs, community buy-in (security)
• Expands customer base per “kiosk”
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Original Product and Channel Rollout Fill Your Own Prefilled Jugs Distribution
Distribution
Phase 1
Phase 2
Phase 3
OTC OTC Jug Exchange
Delivery to Homes
(above) (above)
Delivery to Selected Institutions
(above) (above)
Delivery to retail distribution channels;
Expansion of delivery to institutional customers
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Distribution Model
500 m
OTC
5 km
C. Delivery to Institutional Customers
B. Community Associations
A. Stores
D. Wholesaler
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Channel Distribution Model
Stores10 per Kiosk
Community Associations
4 per Kiosk
Wholesaler1 per Kiosk
CommunityInstitutions
10 per Kiosk
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
120 Families per Store: James
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Regional Distribution of Stores for Site 1
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Pre-launch Distributor Development
• Phases1. Recruitment (2 months)2. Volume ramp up (1 month)3. Expansion
• Recruitment of distributors and institutional customers prior to kiosk launch
• Focus upon launch: Ramp up and expansion
• Result: shorter ramp up period
(see fiches techniques)
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Anticipated Ramp Up for Kiosk 2-5
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Development of Distributor Financing Program
Jugs
Racks
Certification• Training• Upfront audit• Ongoing audit
Jugs
Racks
Certification• Training• Upfront audit• Ongoing audit
Vehicle
Reseller - Store Reseller + Delivery Services
30x = $90
1x = $100
$100 upfront$50 annual
100x = $300
3x = $300
$100 upfront$50 annual
$290 upfront financed 80% by MFI6-9 month payback scheduleReseller responsible for annual fee
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
15-Kiosk Budget vs. Actuals
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000$150,000
$142,292
$92,500
$111,196
$71,000$76,000
Generator Water Treatment Equipment Solar Equipment Internal Fixtures and Fittings
Borehole Landscaping, Fencing Foundation Building Exterior
Kiosk Building
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Issues, Risks, and Mitigation
• Higher/unanticipated costs:– Foundation + $8-9K– Fencing required by DINEPA +$ 5K– Solar + $3K
• Current foundation approach not scalable, cost not predictable
• Need to accelerate re-evaluation of building construction approach for next 10 sites– Need to re-engage additional building partners– Outsource deployment to Construction Management
firm sooner than later
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Year 2: 20-Kiosk Cash Forecast
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Oct 2013 20-Site Financial Forecast
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Fundraising: GrantsDonor Amount Notes Probability
Caribbean Compete $500K In final round. Final submission complete.Financial due diligence and credit check scheduled for Oct 17th;Decision by end of November 2013
Confirmed
LEAD (PADF) $200K Business plan competition. Funds can be applied to general budget.Decision by mid November 2013
Awaiting USAID approval
Open Source Initiative donors(Cisco, GSMA)
$150K Partnering with Dalberg and Accenture entity. To support development of open source RMS and POS system (not in original budget)
80%
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Fundraising: Investors for $730KInvestor Amount Notes Probability
MMA Global Investments
$150K In final due diligence before negotiations 80%
Doug Lee $100K Individual investor 90%
Jim Chu $100K 100%
Grameen Foundation’s Pioneer Fund
$250K -$500K
Strong interest but not possible before May
60%
Vital Capital $730K 30%
Other smaller investors
$50K or less
Diaspora Investment Roadshow
Target close: May 2014Price per share increases by 2% points each month with a cap at 30%
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Agenda
1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Board Approvals
1. Pursue discussion with MFIs for financing of distributor package including jugs and vehicles
2. Use of Convertible Note to secure / lock timing of remaining financing
3. Approval for formation of construction management committee to determine strategy
– Need construction management expertise
Market-Based Solution for Clean and Affordable Drinking Water in
Haiti
Action Items from Board
• Help identify expertise on chain business management
• Set board meeting date and country visit: week of May 19 – Provisional Tues May 20 3pm, field visit next day– Coordinate country visit by FMO– View sales and ramp up volumes– Understand selection of next 10 sites– Assess financing needs