Tomorrowland Homes, Inc.An Opportunity Plan

Jonathan HintonSarah SpeedStacy Thornton Eda

Sismanoglu

Outline• What is the problem and how will we solve it?• What is the Industry? What is your market? What is your value • proposition? • How will you sell it? How would you make money? What is the price? • How will you produce your product or provide your service? Why is the • team best suited to doing this? Who else will you get in your team? • How much is the business worth, and how much money do you need?

Problems• With the world’s population rapidly growing there is a need for affordable

and ecologically efficient housing.

• CLT is the only 100% renewable building material through well

managed forestry efforts and also shows a great reduction in its

carbon footprint for structures when compared with other building

system options, such as traditional concrete and steel structures.

ProblemsProduct Description and Benefits of Use:

• Cross Laminated Timber, also known as CLT, is a modern building system and also a sustainable way of designing and building single-story and mid-rise structures with wood

.• CLT consists of stacking and gluing of lumber in right angled adjacent

layers creating a panel that is rigid, light and stable in all dimensions.

• CLT a viable substitute for steel and concrete within the commercial, residential and multi-residential construction industry because of the many positive structural, economic, environmental advantages it provides.

Problems

ProblemsProduct Description and Benefits of Use:• Contractors, designers, architects as well as home buyers are looking for

building materials that can ultimately cater to their unique construction demands and desires, and CLT is unarguably the best choice in not only lumber but in all building materials within the current and upcoming market that can satisfy all these needs.

• The panel properties provide a lot of advantages over competing construction methods such as: air tightness, fire resistance, and complete insulation.

• It is up to 6 times lighter and 1/3 thinner than concrete and is as strong as both concrete and steel.

ProblemsIn order to introduce a CLT production facility in North America, specifically the

Southeastern United States, there are a few key objectives that must be met if the industry is to be successful.

1. There must be an ample supply of raw material available to make panels, in this case Southern Yellow Pine would be a prime candidate due to its abundance in this region.

2. Supportive industries such as sawmills and adhesive suppliers should be located reasonably near to the CLT manufacturing facility in order to reduce transportation costs for the essential raw materials.

3. Exposing the technology to the potential market through advertising campaigns and educating consumers on the unique nature of CLT construction will promote demand and awareness.

ProblemsRealistically, planning and implementing CLT in North America will take up to 5 to

10 years.

STRENGTHS

-Ecologically Friendly

-Cost Efficient

-Durable

-Attractive

-No Current Competition

WEAKNESSES

-High Startup Cost

-Large Amount of Resources Required

-Logistics Development

OPPORTUNITIES

-Increase in New Construction Starts in

Coming Years(Residential and Commercial)

-Take advantage of beetle epidemic in midwest by use of downed lumber*

THREATS

-Increase in demand could create increase in

competition in the near future

-Inertia to change habits from building professionals

ProblemsIntellectual Property Protection:

• CLT (paneled timber) is already a patented technology in Europe, the steps to ensure our company is still within legal limits will consist of patent licensing and also service/trade marking our company name and logo.

• We would like to pursue a patent for our own proprietary method of in

panel construction.

• The service/trade mark will identify us as the only organization affiliated

with CLT in America, and will protect our name, logo and brand identity.

Problems

Industry/ Market AnalysisWhat is the Industry:

• We are looking to use CLT home packages to compete with other modular home systems that are already in use such as: typical mobile homes (trailers), current prefabricated modular homes, and log cabin home systems.

• The market we are catering to with our CLT home packages is the entry

level and/or affordable housing market with the final home cost ranging

between $40,000-$150,000.

Industry/ Market AnalysisWhat is the Value Proposition?

• Our CLT home packages offer a variety of home layouts and floor plans while being cost

competitive with other entry level home options, and also come with the benefit of being more

energy efficient and environmentally sound over their service life as well.

• Since our CLT homes are similarly priced to our competition’s offerings, yet much more energy

efficient, purchasers of our home packages will enjoy large savings in cost of ownership as well.

Industry/ Market AnalysisCurrent State of the Modular Home Industry

• The current options available in order of cost (there is some overlap between upper end models and lower end models between the different options) are: mobile homes (trailers), prefabricated modular homes, and log cabin style home packages.

• Currently our largest competitor in the southeastern United States will be the mobile home industry. These companies sell a large number of units due to their low price point (between ~$30-110,000) and also range in square footage from 400-2,000 or more. These homes are typically given a lifespan of 20-40 years from financial lenders.

• The ways in which our CLT homes will be competitive with the mobile homes is through offering

higher quality, more energy efficient homes with similar square footage that can easily last 80-

100 years or more with proper maintenance and care.

Industry/ Market AnalysisCurrent State of The Modular Home Industry:

• The second competitor we will be facing is the prefabricated modular home industry which has become a more popular option over the past 20 years mai because the options are more flexible than with mobile homes, yet are still priced well below custom built homes of the same size.

• These homes have come a long way in the quality of what is available at their price point (~$80-250,000) but their construction still tends to just use the bare minimum quality of construction materials needed to meet regional building codes.

• Our CLT homes will compete with these prefabricated modular homes on the same grounds that

we referenced for competing with the mobile home industry.

Industry/ Market AnalysisCurrent State of The Modular Home Industry:

• The last competitor we will need to face is the log cabin style home package producers. These homes are known to be fairly high quality structures through the use of large beam (log) construction methods.

• Typical home designs range in square footage from ~400-2,000 and prices vary for shell only

(~$30-130,000) and fully finished homes (~$70-250,000).

• While the log cabin homes will likely be the most similar option that customers have to our CLT

home packages, we will be able to compete with them by offering similar square footage for less

money.

Marketing PlanTarget Market Demographics:• Single and newly married couples• Southeastern United States• All races• Ages 25-40

Target Market Psychographics:• College graduates• Middle class salary range: $45,000-$50,000

Marketing PlanProduct Benefits:• Cost efficient• Wind resistant• Durability and adaptability• Seismic Protection• Fire protection• Code acceptance• Sustainable designProduct Cost: • The market we are catering to with our CLT home packages is the entry

level and/or affordable housing market with the final home cost ranging between $40,000-$150,000.

Marketing PlanWho Are We?

• Tomorrowland Homes Inc. is a essentially a house dealership.

• Potential customers may choose from one of our models or pay additional prices for a customized design.

• Using CLT technology we build the frames of houses and sell them to customers

Operations and Management PlanOperations:The following is a list of what needs to be done to be successful:

1. Identify sources for both southern yellow pine and resin to construct the panels; which are both readily available in the Southeastern region of the US.

2. Purchase a large adjustable hot-platen press and a CNC router in order to produce CLT from the raw materials.

3. The press will be used to heat and press the wooden layers together along with resin in between each wooden layer to compose raw CLT panels.

4. The raw CLT panels will then be taken to the CNC router to be cut to the desired dimensions for the modular home industry.

5. The final process for the production of CLT will be to deliver the completed panel packages to the construction site of the modular homes.

Operations and Management PlanThe Management Team:

Tomorrowland Homes Inc. will be managed by the Key Venture Team (KVT) and its advisors which

are comprised of:

● Jonathan Hinton (KVT)- graduate of NC State with a degree in Wood and Paper Science, has

extensive knowledge regarding the technical aspects of CLT production.

● Stacy Thornton (KVT)- graduate of NC State with a degree in Wood and Paper Science, has

extensive knowledge of fabrication processes involved with biomaterials such as wood.

● Sarah Speed (KVT)- graduate of NC State with a degree in Sports Management, has extensive

knowledge in HR, marketing, and event planning.

Operations and Management Plan

The Management Team:

● Eda Sismanoglu (KVT)- graduate from NC State with two degrees, one in Human resources and the other in

Marketing. Clearly she will aid in promoting our product, as well as recruiting for our work force.

● Dr. Perry Peralta (advisor)- obtained his Ph.D. from Virginia Polytechnic Institute and State University. He

teaches Wood Physical Properties, Wood Mechanics, and Statistical Process Control. He has extensive

knowledge of the mechanical properties of Southern Yellow Pine, as well as the production processes related to

wood.

● Dr. Phillip Mitchell (advisor)- obtained his Ph.D. from Virginia Polytechnic Institute and State University, works

with the value-added wood products industry in North Carolina. His extensive knowledge of adhesives will aid

in the production of quality CLT panels.

Operations and Management PlanOrganizational Structure:• The high startup costs associated with this venture guided us in deciding to

incorporate. This will allow us to raise sufficient funds for the purchase of the equipment needed to produce and deliver CLT.

• The board of directors and the CEO of Tomorrowland Homes Inc. will be

selected from the original management team.

• Eventually an experienced CEO will be hired to lead, in cooperation with the original management team, the company in further progress,expansion to bigger facilities, and ultimately more profits.

Financial Analysis• How to obtain capital• IPO• Additional Investment from partner company • Initial startup cost• Equipment• Facilities • Employee wages

Financial Analysis

2013 2014 2015 2016

Sales 0 $35,000,00 $75,000,00 $175,000,00

COGS 0 12,022,000 25,761,430 60,110,000

Labor 9,600 320,000 500,000 640,000

Gross Profit -9,600 22,658,000 48,738,570 114,250,000

Operating Expense

0 300,000 300,000 300,000

Net Income -9,600 22,358,000 48,438,570 113,950,000

Conclusion

Thank you for your time!

Questions???