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January 15, 2016
Vento360 Corporation1532 Bori Street, San Juan, PR 00927
251 Royal Palm Way, Suite 205, Palm Beach Fl 33480Tel (646) 658-3111
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Our Mission-Low cost, long lastingwind energy where you need it
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• Vento360™ V-1 –– Cost effective - life cycle cost of less than ten cents per KWh produced– Scalable– High ROI– Sustainable– Infrastructure hardening– Easily assembled/installed and disassembled /moved to a new location– Visible display of commitment to the environment– Low permitting requirements– Long life– Suitable for a broad range of wind and site conditions– Marine grade– Steady state KWh’s – no net metering (unlike solar) – replace some utility
supplied KWh’s
Customer Benefits
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• Vento360 designed to be scalable and installed in multiples• Typical 200’ x 100’ structure = 60 Vento360’s
• Miles of parapet on commercial buildings• Addressable market in the billions of dollars• Entities which own/lease large structures
• Hotels• Manufacturers• Retail • Office Buildings• Government Facilities
• Corporate renewable mandates• Utility variable pricing – energy storage costs dropping• Rise of holistic solutions – wind/solar – storage – web based controls
Vast Market Opportunity
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• Micro-wind turbine penetration in urban settings – negligible• Societal non-acceptance -
– High RPM’s.– Noise.– Flicker.
• Poor Economics -– High cost– Wind shear = maintenance– Poor customer ROI.
Market Problem/Current Solutions
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Unfair Advantage
Company Model OrientationRated Power Installed Cost Cost per watt Size Weight
Vento360 Corporation Vento 360 V-1 Vertical 1,200 watts $ 5,000 $ 4.12 13 ft 80
American ZephyrAir Dolphin GTO Horizontal 1,000 watts $ 6,985 $ 6.98 6.0 ft 38.5
Bergey Wind Excel 1kW Horizontal 1,000 watts $ 6,000 $ 6.00 8.2 ft 75
Earthtronics WT-6500 Horizontal 1,000 watts $ 6,500 $ 6.50 6.0 ft 95
Eveready Kestrel E300 Horizontal 1,000 watts $ 6,000 $ 6.00 9.8 ft 165
Mariah Power Windspire Vertical 1200 watts $ 12,495 $ 10.41 30 ft 650
Urban Green VisionAir 3 Vertical 1,000 watts $ 14,650 $ 14.65 10.6 ft 662
Venger Wind V1 Vertical 2,000 watts $ 10,975 $ 18.29 11.8 ft 640
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• Two 6’ tall aircraft aluminum and high performance plastic turbines• Simple gear system increases the RPM of alternator by over 2X • Hinging mast base = safe and efficient installation• Incredibly light – total weight about 150 pounds including mast/base• Part of blades always perpendicular to wind• Does not compromise the existing designed (engineered) strength of
structures• Roof condition immaterial (unlike solar)• Modular design with few parts• Can be used in hybrid on and off gird tie solutions together with solar
Our Solution
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• Net zero carbon foot print. • No installation of large towers or transmission lines. • Five year warranty – 15 to 20 year useful life.• No land required for siting – located on otherwise unused parts of roof. • Extremely quiet - low RPM’s = no perceptible increase in noise levels.• Minimal maintenance - occasional oiling of bearings.• Perceived by wildlife as a solid object - bird and bat friendly. • Recyclable at end of useful life. • Designed for years of service with minimal maintenance• A “plug and play” unit including inverter
Our Solution
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Vento 360™ V-1– Rated capacity: 1.2 KWh– Cut in wind speed: 6.3 mph/2.8 mps – Rated wind speed: 24.6 mph/11 mps – Survival wind speed: 140 mph/62.6 mps – Total rotor height: 12 ft – Rotor width: 38 in – Rotor swept area: 39.6 sq ft – Rotor weight: 80 lbs.– Extremely quiet (low RPM’s = no perceptible increase in noise levels in
normal background conditions).
Specifications
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Equipment Sales• Minimum gross margin target –
65%• Simple supply chain• Few component parts• Simple fabrication and partial
assembly skills• Easily shipped and assembled• Suggested installed price - $5,000• Dedicated downstream installer
per territory - quality/efficiency/lower costs.
• No distributor network – adds cost
• Scalable – Repeat customers
Two Revenue Streams
Energy as a Service• Renewable energy at a lower price
than local utility• All benefits of renewable energy
but no up front costs• Long term agreements – 12-15
years• Shorter sales cycle – no capex
decision by property owner• Higher return to company though
spread over years• ROI on equipment costs within 2
years even without ITC• PPA’s subject to local laws • On-going revenue stream
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• Building parapet – 400 feet in total length – 40 Vento360 V-1’s• Output
– 12 KWh per day/unit– 480 KWh per day/40 units
• Avoided utility charge (assuming $.26 per KWh*)– $125 per day/40 units– $45,500 per year per unit.
• At an installed cost of $200,000– Customer ROI occurs in 4.4 years.– After which renewable energy from the Vento360’s is free.– $482,300 in avoided utility charges over useful life.
* Median between HI, CA, PR and Jamaica
Customer Purchase Economics
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Equipment Sales Model Year 1 Year 2 Year 3
Projected Sales $ 1,120,000 $ 4,200,000 $ 7,800,000
Minus: Cost of Good
Sold $ 447,750 $ 1,417,000 $ 2,830,000
Gross Profit $ 672,250 $ 2,783,000 $ 4,970,000
Gross Profit as a Percentage 60% 66% 64%
Total Operational
Expenses $ 310,500 $ 634,000 $ 909,000
Operational Income $ 361,750 $ 2,149,000 $ 4,061,000
Income Before
Taxes $ 361,750 $ 2,149,000 $ 4,061,000
Minus: Taxes
(4%) $ 14,470 $ 85,960 $ 162,440
NET INCOME
$ 347,280
$ 2,063,040
$ 3,898,560
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• Initial customers include:• A state park’s ocean side park• An armed forces research facility• A large agricultural company’s poultry farm• A conglomerate’s downtown office building• A worldwide hotel group
• Energy as a service:
Sales Traction
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Energy as a Service Model
Assumes a 12 year PPA with a property owner/off taker
Number of Vento360 wind turbines installed 1 Utility cost for customer per KWh $ 0.30 PPA charge to customer per KWh $ 0.24 Average KwH generated per hour 0.500 Average KwH's generated per day 12.00 Average KwH's generated per month 365 Average KwH's generated per year 4,380 PPA revenue per year $ 1,051.20 Vento360 cost $ 2,000 Company ROI in years 1.90
Total PPA revenues $ 12,614
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• Vertical focus – Commercial enterprises and government agencies• Hotel – Retail Chains• Manufacturers• Office Buildings• Military Bases – Parks - Buildings
• Geographic focus • Hawaii – California - Caribbean (Jamaica/Puerto Rico)• Japan, SE Asia - Europe
• Partners • Established RE electrician/consultant in each market (two/three in CA)• Commissioned sales reps
• Direct marketing to selected targets • Chains with multiple locations• Corporate mandated renewable goals
• B to B Conferences (Hospitality, ESCO etc.)• Focus on cash flow sustainability now not later.
Marketing: Customer Acquisition Plan & Costs
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• Courtlandt G. Miller – Founder, Chairman and CEO – A lifetime of entrepreneurship having founded and successfully exited several companies. Most recently, co-founded Vento360, EcoVolt Power Corporation, an advanced lead acid battery company and Helios Coatings, a Tier 1 supplier of environmentally friendly specialized coatings to automotive manufacturers
• Robert (Pete) M. Plaskove – Co-Founder and Chief Technology Officer - Electrical engineering senior manager for over 40 years renewable energy field. Lead design and installation of over 100 megawatts of renewable energy capacity installed on Costco, FedEx and WalMart properties.
• Julian Herencia – General Manager – Over 30 years of operations management experience. An expert in energy efficiency, has installed turnkey solutions reducing millions of dollars in energy costs, and significantly contributing to the most recent renewable energy public policy implementation in Puerto Rico.
• Mark E. Leininger – Director and Secretary - Over 30 years C-Level experience, public and private, starting and growing innovative green and other technology companies – co-founded Vento360, co-founded and CEO of EcoVolt Power Corporation and Helios Coatings.
• Hamid Rahai – Director – Professor - Mechanical and Aerospace Engineering Department at California State University, Long Beach California. Highly respected researcher and educator with numerous patents issued and white papers written. Co-author of the fluid dynamics patent owned Vento360 which provides a 40% more efficient blade shape and creates lift.
Founders/Management
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• Parent – Vento360 Corporation (Puerto Rico)• 4% corporate tax rate as a renewable energy manufacturer based in Puerto Rico• Excellent location to serve the Caribbean basin and Mainland USA• Modern airport – direct flights to all islands and mainland USA• Large domestic market for Vento360’s• Low cost commercial real estate and excellent labor pool• Will ship units from Puerto Rico on FOB basis
• Subsidiary – Via Verde Corporation (VVC) – a Delaware corporation• Wholly owned• Provides all services within the states to parent on a cost basis• Satellite presence in CA and Hawaii• Vehicle for PPA’s in the states
Corporate/Business Structure
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• Offering – • $1,5mm/$2mm in common stock at $.55 per share ($4mm pre-money)• Put/call at third anniversary at 20% annual compounded basis• Right of first refusal to participate in any Special Purpose Vehicles – minimum 20%
• $4 million pre-money valuation -• Expansion stage company/commercially ready solution• Exceedingly large markets - worldwide• Poor competition• Two revenue streams• Unfair advantages (low cost – low tax rate – flat structure)• Focus on near term cash flow sustainability• Low cash burn – under $20,000 per month• Clean balance sheet
• Use of Proceeds -Warehouse and equipment - $25,000
Inventory - 150,000Regulatory - 100,000Working capital - 1,225,000
Total - $1,500,000
Offering/Valuation/Proceeds
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• Investor/Company Put and Call• On third anniversary at a 20% annual compounded basis
• Participation in Special Purpose Entities• Investors have right of first refusal to participate in any SPE’s relating to PPA’s• Minimum participation = 20% of available equity
• Dividends – Stock Buy-backs (Reverse Dutch Auction)• Focus on cash flow• Low corporate tax rate (4%)
• Acquisition• Types of potential acquirers –
• Energy as a service providers (SolarCity, SunRun)• Expand beyond solar• Higher ROI than solar
• Strong excess cash flow, particularly from PPA’s = financial buyers• Downstream and upstream RE equipment manufacturers• Other turbine manufacturers
• IPO
Liquidity -Exit Strategy
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• Inexpensive and easy to install and maintain• Excellent ROI to customers• Large and growing worldwide market - no limit on installed devices• Price elasticity - high gross profit margins • Not capital intensive• Can scale rapidly – simple supply chain• Zero net carbon • Positive visual impact• Patented technology
Investment Thesis
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Our Mission-Low cost, long lastingwind energy where you need it
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• Slides A – 1/A – 5. Vento360 being assembled• Slides A – 6/A – 7. Intellectual property• Slide A – 8. Summary
Appendix
A - 1
Hinging MastInstalled on Existing Cinder Block Wall on Roof;Cable Used to Raise and Lower Mast Visible.
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Mast with Brackets to Hold Turbines Installed.
A-3
Mast with Turbine Shafts, Disks and Alternator Installed.
A - 4
Completed Assembly - Two Complete Turbines and Alternator Installed.
A - 5
A - 5
Wall Mounted Vento360 V-1 Raised to Vertical and Operational.
A - 6
Two Issued Patent – Fluid Dynamics and Product Design.1. Blade shape – (USPTO #7/393/17) algorithms and methodology produce increased lift (not just pushing).
– Optimized blade shape - 30% more torque than traditional “S” shaped (Savonius type) blades.
– Inventors – Chair and professor of Cal State - Long Beach Mechanical and Engineering Department.
Intellectual Property
A - 7
2. Device design – (USPTO #8,358,030) relating to:– Tapered symmetrical disk leading edge.– Inset blade edge.– One to one blade height/width ratio.– Split (90 degree) blade design.
• Creates lift.• Directs and concentrates wind onto the blades.• One of two turbine blades is always perpendicular and not parallel to
wind. • Ensures early, reliable start-up regardless of wind direction and turbine
position.
Intellectual Property
A - 8
Summary
• Customer Benefits– The Vento360 V-1® patented micro-wind turbine– Scalable, low cost, long lasting solution for urban structures
• Huge untapped market • Competitors’ product deficiencies• Our solution• Unfair advantages –
– Modular design + simple supply chain = Low COG’s– Flat organization– Four percent corporate tax rate
• Two revenue streams – customer economics and pro formas• Marketing and geographic focus• Management• Corporate Structure• Offering and use of proceeds• Liquidity and Exit