Cool Technologies, Inc....Retail Price $100,000 $100,000 COGS $50,000 $35,000 30% Gross Profit...
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July 2015 Cool Technologies, Inc.
Transcript of Cool Technologies, Inc....Retail Price $100,000 $100,000 COGS $50,000 $35,000 30% Gross Profit...
July 2015
Cool Technologies, Inc.
FORWARD LOOKING STATEMENTS
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This presentation contains information that is “forward-looking” in that it describes events and conditions Cool Technologies, Inc. reasonably expects to occur in the future. Expectations for the future performance of HPEV, Inc. are dependent upon a number of factors, and there can be no assurance that Cool Technologies, Inc. will achieve the results as contemplated herein. Certain statements contained in this release using the terms “will”, “could”, “may”, “expects to”, “potential”, “planned”, “expected”, “estimates”, “schedule”, “anticipates”, and other terms denoting future possibilities, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Cool Technologies, Inc.’s ability to predict, or control and which may cause actual results to differ materially from the estimates contained herein. Among these risks are those set forth in Cool Technologies, Inc.’s Form 10-K and in reports subsequently filed with the Securities and Exchange Commission, and in addition to the other risks and caveats included in this presentation. It is important that each person reviewing this presentation understand the significant risks attendant to the operations of HPEV, Inc.Except as required by law, Cool Technologies, Inc. disclaims any obligation to update any forward-looking statement contained herein.
MANAGEMENT
Timothy HassettCEO, Chairman & Co-Founder
30+ years experience managing and growing manufacturing firms: GE, WaveCrest, Hawk Motors, Rockwell Automation• Turned around two divisions for Jack Welch at GE• Took WaveCrest from $0 to $30M in revenues in 18 months (with Mark)• Took Lemo from $32 to $75M in revenue and grew net income 22x in 4 years (with Mark)• Mars Rover drive train co-designer
Mark HodowanecCo-Founder
20+ years of engineering & operations expertise: more than 30 publications & numerous patents• Engineering Director at Curtiss-Wright• Led new product innovation at Reliance Electric• Engineering Manager at Siemens Energy and Automation• Led Emerson to API approval – after Emerson’s efforts had failed for 11 years• Mars Rover drive train co-designer
Theodore BanzhafPresident
20+ years experience in growing public companies in all facets of finance, growth strategies, and management
• Expertise in maximization of shareholder value and maturing small companies into larger organizations• SpatiaLight Technologies (NASDAQ:HDTV), CE Unterburg Towbin, Raymond James
Quentin Ponder
Vice Chairman
50+ years experience in management: Baldor Electric Motors, Franklin Electric Motors, GE• Noted in the book “World Class Manufacturing: The Next Decade” as one of the 5 best executives for
manufacturing improvement pathways in the modern industrial era• Coined the term “Flex Flow Manufacturing” based on his revolutionary manufacturing management
techniques
Experienced management team with a history of bringing technology to market and driving growth
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Board of Directors/Advisory Board
Notable Manufacturing Industry Members of the Company’s Board of Directors & Advisory Board
• William Finley – Chief Technology Officer (currently) for Siemens Industry,Inc. 40 year veteran of Siemens.
• Richard Schul – Emerson Electric - 43 year motor and generator veteran andindustry icon
• Dan Ustian - 12+ years as Chairman & CEO of Navistar, Inc. 37 years in theauto industry
• Scott Van Dorn – Engineering Director at Navistar - 20+ years in globalengineering and management in vehicles, including chief engineer for theFord F-series line.
• Roman Kuropas – Founder and CEO of Inverom – designed user interfaceelectronics for Tesla, Lamborghini and Ferrari
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See Videos at: https://www.youtube.com/channel/UCnioC-pWMXbs8-rqZ98VCEw
“This industry has been scraping to save pennies for years and Cool Tech is giving it $20 bills.”
Richard Schul – former Group Vice President of Commercial Industrial Motors, Emerson Electric Corporation
“I’m amazed with the results! … the biggest improvement in pumps in more than 50 years…a real game changer.”
John Ivins, President, ESSCO Pumps & Controls
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CURRENT APPLICATIONS being COMMERCIALIZED
Motors & Generators
Market $100B+
Mobile Generation
Market $100B+ Market $30B
Water & Wastewater
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Transformers
Applications in Final Development Stage
MOBILE GENERATION (MG)
Power Onboard transforms any truck into a mobile generator.
• Either new or existing trucks
• Uses the truck’s engine to deliver up to 200kW of electric power.
• Compressors, welders, backup power - plug into the smart grid.
• On board telematics (diagnostics) and integrated dashboard control
• Any type of engine or fuel type (natural gas, diesel, gas, fuel cell)
• Does not affect truck warranties.
• Secret Sauce: Cool Technology's gearing system & thermal tech more power, smaller unit, draws power from truck.
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MOBILE GENERATION (MG)
Green Proposition
• One fewer engine – lower emissions, less fuel
• No idle feature – runs completely on CNG – no emissions,less fuel
• PPIG – smaller generator - less energy same power – lessfuel
• Fuel agnostic – CNG, LNG, Electric, Fuel Cell, Gas, Diesel
• No Lithium Ion Batteries - we use lithium ion phosphate batteries which pose less of a fire hazard and have a higher cycle life than lead acid. The more cycles, the longer the battery lasts which reduces the size of the waste stream. 8
MOBILE GENERATION - Markets Worldwide market in excess of $100 billion
Disaster Response
Developing Markets
Utility Fleets• Class 2-8 trucks tow gensets to the jobsite – we put it up under the chassis
vs. Tow-Behind Generators
• 20 to 30% of the weight
• 30 to 50% lower cost
• Chassis mount under the vehicle
• Huge fuel savings (typical work truck $3K-$8K annual savings)
• No warranty issues
• Mobile power capabilities – up to 200kW.
Example: 200kW – Cool Technology: 3,000 lbs vs. 10,000 lbs.9
MOTORS & GENERATORS
(1) CEO Tim Hassett’s father, Jack Hassett, invented the frameless DC motor
• Existing production lines
• higher output from thesame package
• Increased standardizationof product line
• $100 billion addressable market – commercializing NOW
• First COST OUT in M/G of more than 5% in 50 years
• The best cooling available at the lowest cost
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COST SAVING EXAMPLESLower manufacturing costs and increased power density: Higher Margins
Air Cooled Motor HPEV Improved Motor Improvement
Output (Horsepower) 1000hp 1000hp
Retail Price $100,000 $100,000
COGS $50,000 $35,000 30%
Gross Profit $50,000 $65,000 30%
Electric Motor – Manufacturer Benefits Model
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40% of the size
Water & Wastewater ESSCO Pumps and Controls, industry leader since 1955
“…This solves one of our industry’s Achilles’ heels. this dramatically reduce
maintenance costs and time loss while improving pump output and flow as
well. It’s a real game changer.” – John Ivins, President of ESSCO
• $30 billion addressable market -commercializing NOW
• Going to California & New York initially
• New method of cooling the drive motors
o Removes huge maintenance costs forend user
o More than doubles horsepoweroutput
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Potential Customers & Market
Addressable markets estimated at over $110 billion; management has relationships with nearly all the major industry players.
The “Big-8” control approximately 80-85% of the m/g market
Aftermarket – Royal Dutch, Chevron, ExxonMobil, BP, etc.
~$110b Addressable M/G Market
Big-8: 80-85%
• We estimate the water and wastewater market in the United Statesto be ~$30 billion annually.
• Being commercialized by ESSCO
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REVENUE MODEL - IP & Engineering Company – Not a Manufacturer
Mobile Generation • Joint Venture Product Markup – undercut competitive products by 20+%
Motors / Generators • 2-3 year License Agreement – up front fee• 3% Royalty on total sales price of motor or generator
Water & Wastewater • Joint Venture Product Markup
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Who We are and what is THE PROBLEM
Intellectual property company that helps OEMs remove heat from their products better than anything on the market.
THE UGLY EVIDENCE OF INEFFICIENCY
Cool Tech’s focus: motors/generators, pumps and mobile power generation markets.
o Lower costs to manufacture by up to 30%
o Higher Output up to 40% horsepower or electricity15
Our Technology applies to myriad product classes, but these products all have one thing in common:
They are inefficient users of energy
Cool Technology makes these machines more efficient and productive on less energy
The Environment – How is Cool Tech GREEN
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• Cool Tech uses Heat Pipes in its designs and changes the way traditional heat exchangers work.
• A heat pipe moves heat from A B
THE FOUNDATION of the COOL TECH SOLUTION: HEAT PIPES
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INTELLECTUAL PROPERTY
• Heat pipe technology has been around for over 100 years. Cool Technology controls a patent portfolio that leverages a unique ability to increase power density and lower manufacturing costs in the motor and generator industry as well as other industries.
• Five U.S. utility patents have been issued.
• More than 10 Patent Cooperation Treaty (PCT) patents are pending or in the application process.
• Patent Attorney: Polster, Lieder, Woodruff & Lucchesi, L.C.
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Potential Customer Overview
Mo
tors
/Gen
erat
ors
&
Tran
sfo
rmer
s &
Wat
er/W
W
Ch
ann
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Part
ner
OEMs• M/G: Big 8
• Pumps: Essco & Flygt
Aftermarket:• Royal Dutch Shell,
Chevron, ExxonMobil, BP
Transformers• Southern Cal Edison
• Detroit Edison
• Florida Power & Light
• Thermacore – Leader in Heat Exchangers & Heat Pipes
• Fabricate our technology and sell directly to the OEM
• Cool Tech’s “salesforce” to the 200+ motor/generator OEMs (non Big-8)
MG
• Disaster Response, Emerging Markets, Utility Fleets, Independent Contractors
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INVESTMENT CONSIDERATIONS
• Three Legged Platform – Each could be a large stand-alonebusiness
• Being commercialized NOW in MG, M/G, Pumps• Final Development Stage in Transformers• Future applications include: Bearings, Brakes/Calipers,
Hybrids, Turbines, etc…. Anything that rotates
• Patented, disruptive technology that applies to many verticals
• Improves power density (output) by up to 40% and reducesCOGS by up to 30%
• The immediate addressable market is more than $100 billion
• Experienced Management team and Board – Industry Leaders
• IP & JV Model - provides significant operating leverage
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