SolaBlock Investor Slides
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Transcript of SolaBlock Investor Slides
SolaBlockLLC79RiverDrive,Hadley,MA01035www.solablock.com
Tough City Solar
Copyright©2016SolaBlockLLC
HighDemandforSolarPVinCi4es
Urbancommuni4eshavedesiredon-sitesolarelectricityasmuchasothercommuni4es,buthavenothadaccesstophotovoltaic(PV)productssuitedtourbancondi4ons.
• UnKlnow,urbansolarhasbeenrelaKvelynonexistent,dueto:
-Insufficientroofspace,complexsurfaces,cost,or-RiskoftheS,vandalism,orotherseveredamage.
• SolaBlockisdesignedfortheurbanlandscape,enablingurbanstructurestohaveproducKvesolargeneraKonintegratedwithbuildingfacadesandwalls.
• SolaBlockmeetsthedemandcriteriaforLEED,EnergyStar,andothergreenconstrucKoninhighdensityurbanandcampusseUngs.
SchoolsandcollegesMunicipalbuildingsHighwaysoundwallsParkinggaragesRemotebuildingsBridgesU4litybuildingsUrban“infill”buildingsPropertywalls
AnAccelera4ngMarketforBIPV“Building-integratedPV(BIPV)isoneofthefastestgrowingmarketsinthebuildingsector”*“15.4%CAGRthrough2019”**.
ü TotalcurrentBIPVmarket:$1.7billion***.ü Addressablemarket:$500million.
Solardemand—wherepeopleliveü Urbandwellersalsowantbenefitsofsolar.ü Mostvaluableclosesttobuildingloads
ü Enablingurbanzero-energyandoff-gridbuildings
ü Capableofsolarizingotherwiseimpossiblestructures(walls,bridges,etc).*NavigantResearch;**Markets&Research;***PikeResearch
SolaBlock–ToughCitySolar
Longservicelife
Vandalresistant
TheSresistant
Weatherresistant
VersaKle
CosteffecKve
Fundamentallylikenoothersolar
$∞
SolaBlockTechnicalDetailsPhysicalDesign• PermanentlyPV-cladfaçademasonry—sameastradiKonalblock.• Permanentlyimbeddedmonocrystallinesiliconsolarmodule.• PassesASTMtestsforcompressiveloadsandotherrequirements.• Highimpactmaterials—survivingschool-yardmishaps.• Fullandhalf-blocksizesavailableforcomplexarchitecture.• TheS-andvandalism-resistantdesign—cannotbestolenintact.
ElectricalPerformance• Upto10Waispeakperfullblock,persquarefoot,dependingonOEMcellefficiencies.• Upto12kWhperfullblock,persquarefootannually,dependingonlocaKon.• FiSy-yeardesigngoalto80%producKonduetohighthermalconducKvitytoblockmass.• Internalbypassdiodesre-routecircuitswhenshaded,painted,orelectricallydamaged.
Installa4onFeatures• Concretecolorandrecycledcontentcanbespecifiedbycustomer.• Wiringconnectedsolelybyelectricians—separaKngthetrades.• Viewableatground-level—airacKveineducaKonalseUngs.• WallslaidsolelybymasonssimilartoconvenKonalblock.• Blockscanbeindividuallyreplacedinthefuture.
Karen Lauter Utgoff Consulting
PatrickQuinlan,ChiefExecu4veOfficerNaKonalRenewableEnergyLab.,UMass,U-Wisc.SolarLab,ProfessionalEngineer,WhiteHouseandCongressionalTechnologyFellow.Patents.
JasonLaverty,ChiefOpera4ngOfficerFormerInstructor,InternaKonalMasonryInsKtute,Member—Local3BostonInternaKonalUnionofBricklayers,JobCorpInstructor,Patents.
ProvidingCustomerConfidencewithTechnologyExper4se,BusinessDepthandaCustomer-OrientedTeam
Advisors
StaffMarkStetz,ElectricalSystemsManager;RachaelYaseen—BusinessManager,2-4UMassSales&MarkeKnginternsandengineeringinterns.
Founders
CREATIVEDESIGNDRIVENBYMARKETINGSCIENCE
Team
Business Canvas Value Proposition
Key Activities
Key Partners
Customer Relationships
Channels
Revenue Streams
Cost Structure
Customer Segments
Key Resources
Provide on-site solar electricity to urban building owners. Provide on-site electricity for buildings vandalism, theft or weather has previously precluded it. Enable buildings, walls and other structures in urban areas to provide local electricity to meet sustainability or energy independence objectives. Enable building owners to visibly differentiate their buildings as sustainable.
Ultimate customers: • Public building
owners • Remote building
owners • LEED building
designers/ developers
• Homeowners. Our direct customers are the regional building product suppliers who serve these market segments as our partners. Multi-sided market: customers are our partners and the product end users.
We will reach regional concrete manufacturers through trade marketing. We will drive interest through contacts with public agencies, green groups and architectural organizations interested in green building.
We acquire our customers through identifying and soliciting region partners. We keep them through national support for the brand, margin-sharing, and end-use customer support.
• Supply-chain needs for high value PV, good quality block.
• R&D for more products • Marketing to partners • Drive demand • Develop low cost
volume manufacturing.
• Supply-chain providers • People, hires • Funding, investment • Brand building • IP support • Partner management • Testing and certification
services.
Supply-chain: • PV cell OEMS • Electric parts
OEMs. • Glass and
substrate OEMs
Distribution & Sales: • Regional block
and tile providers • Public building
contractors • Architects and
designers • Retail building
products retailers.
Interested parties: • Green groups • Public agencies • LEED • EnergyStar, etc.
• Leverage Costs for PV, glass, wiring, and other materials
• Labor, automation, and transportation • Shared margins with retailers • Marketing, both national and regional • IP--especially international patents
Sales to: • Our regional building products
partners • Direct sales to end-use
customers for ancillary parts
IPandMarketAdvantage
• IPDevelopment:– USuKlityanddesignpatentsawarded,EUpatentspending– IPcounsel:Fish&Richardson– Nextstep:ANSIandULcerKficaKon– DetailedinternalmanufacturingprocessesIP
• Go-to-Market:– DemonstraKonprojecttobecompletedinSpring2016– Firstlocalconcreteblockpartner:DucharmeCorp.– Seekingregionalconcrete-blockmanufacturersanddistributorpartners
SolaBlockCustomerMarketSegments
RegionalNortheastSoutheastSouthwestNorthwestInternational
ApplicationCommercial/IndustrialResidential BuildingsWall SystemsUrban StructuresSolar Projects
CustomerLEED DesignersGovernment AgenciesSchool SystemsBusiness ownersHomeowners
BridgingSupplierstoNewMarkets
NavigantResearch:“Building-integratedPVisoneofthefastestgrowingmarketsinthebuildingsector,with4.6GigawaMsforecastthrough2017.”
• Addressablemarket:$10billion.• SolaBlockearlycustomermarket:$500million.• VeryairacKvemarketsectorforSolaBlocksuppliers.
LeveragingoversupplyinbothconstrucKonmaterialsandPVmonocrystallinesectors:• BridgingintonewmarketsforbothsuppliersthroughSolablock..• BuildingrelaKonshipswithpotenKalfuturelarge-scaleexitbuyers.
MonocrystallineCells(OEMs)
SolaBlockNa4onalMarke4ng
Customers
SolaBlockmanufacturesanddistributesPV-cladblockandKle.Tilesarecompletedonsiteandshippedtopartners.Forblocks,PV-kitsareassembledatSolaBlockandshippedtoregionalpartnersitesforfinalassemblytoblocks.
Suppliers
EndUseCustomers
HardwareSuppliers(OEMs)
Wiring,encapsulantsetc.
(OEMs)
RegionalPartners
SMUR&D SMUDesign SMUProduc4on(PV-Kits)
TileR&D TileDesign TileProduc4on RegionalPartner Customers
CustomersSMUFinalAssembly
ConcreteBlockManufacturers
Marke4ng
R&D Produc4onDesignfor
Manufacturing
RegionalPartnerLocalMarke4ng
SolaBlockValueChain
PerformanceofVer4calvs.TiltedModules
AnnualEnergyProducQon:VerQcalSouthFacingversusTiltedOrientaQon
ConKnentalUS,Japan
Canada
Europe
ReflecKvesurfaces(concrete,whitestones,snow,water,etc.)infrontofthePVcanmakeupmostofthedifference.
Ver4calPVproducesabout60%oftheoutputof4ltedsolarintheUS.InEU,70%;inCanada80%
InstalledCostLessThanBrick
Source:RSMeansConstruc4onData,on3-4-14:forbrick(buff,runningbond,4"x2-2/3"x8”)vs.concreteblock(highstrength3500psi8”x16”x4”)withSolaBlockbarematerialpriceof$15.00.
SolaBlockinstalledcostat$26persquarefootversusbrickat$27
$11.40$15.00
$8.05$3.83
$7.53 $7.29
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Brick SolaBlock
O&P
Labor
Material
SuperiorCustomerLifecycleBenefit/Cost
Conven4onalPV*
SolaBlockPV*
LifeKme 25years 50yearsReplacements once zeroAnnualkWh/W 1.6 1.2AnnualRevenue $50 $36Cost $404 $270Benefit/Cost 3.16 3.43
RaKo==> 1.10
SolaBlockis10percentmorecost-effec4vethanconven4onalsolar
*Comparison:60-cellcSimodulevs.30SolaBlockSolarMasonryUnits(SMU)
SolaBlockisthebestchoiceforurbansolarapplica4ons.
VandalResistance
ThekResistance
EnergyProduc4vity
Life-cycleValue
SolaBlockSystems
ConvenKonalModules
SolarShingles
SolarWindows
SolaBlockvs.Compe4tors
FinancialModel
Costs *AssumpKons: Endofyear2017operaKons(seeP&Lforecastsfordetails). Salesof90%block10%Kle,plus10%salesinancillaryproducts.
Item CostConcreteblock $1.50
Photovoltaics(11Wp)
$6.60
Wiringanddiodes
$2.25
Coverandencapsulant
$2.85
Labor&overhead $3.30
TOTAL $15.00
Item Cost
Costperblock/Kle-set $15.00
Grossrevenueperblock/Kle-set
$19.13
Grossincomeperblock/Kle-set
$8.50
Interest,depreciaKon,taxes,etc.
$2.25
Netearnings $6.25
Grossmargin 50%
Item Cost
Grossincomeperblock/Kle-set
$8.50
Annualsales* 476,000
Annualgrosssales
$13.2M
Grossprofit $4.4M
Projectedyear-over-yearsalesgrowthto2020
100%
Revenue
Profits
GrossMargin:50%ReturnonSales:18%
FinancialPlan• 2016:$500,000SeedFunding
– IniKalsalesandpilotdemonstraKons– CerKficaKonandcompliancetesKng– Pilotcontractswithpartnerconcretemanufacturers
• 2018:$2.25MSeries-AFunding– Manufacturingscale-upandautomaKon– Businessdevelopment–mulK-regionalpartners.– Businessdevelopment–internaKonalpartners.
• 2020:$6.5MSeries-BFunding– EUmanufacturingscale-upandautomaKon
EBIDTAGrowth• Cost-of-goodssold($17)for2017basedonhighlabor-intensityandpoorbuying
powerforPVcells,fallingby1/3duetolargerpurchasing.
• RevenuegrowthcommensuratewithcompositeofBIPVmarketgrowthof15%CAGRplusannualmarketsharegrowthatnominal100%.
• Fundingneedsare$200,000in2016formanufacturing;$2,25Min2018forEUexpansioncampaign;and$6.5Min2020forworkingcapital.
20
$ 2016 2017 2018 2019 2020
COGS(perunit) 17.00 15.50 14.50 14.00 13.75
Revenue -58,000 4,138,000 12,298,000 28,618,000 61,258,000
EBIDTA 0 1,445,000 3,390,000 6,930,000 14,010,000
FundingNeeds 200,000 0 2,250,000 0 6,500,000
PlanforCompe44veAdvantage
1. SecureIntellectualProperty—oncover,encapsulant,interconnecKon,andoverallconcept.
2. NodirectcompeKtorsinthespaceatthisKme.
3. PartneringplanwithlocalpartnersensuresstrongregionalmarketposiKonsacrosstheUS.
4. RapidbrandingtoestablishoverwhelmingproductrecogniKonearlyon. SolaBlocklabelingpriortocommissioning.
GoingForward• IPsecured—USpatentssecuredandEUpatentsappliedfor• Excellentteamformed• Prototypesbuilt—IPvalidated• Commitmentfromblockmanufacturer(R.Ducharme,Inc.)• Commitmentfromblockdistributor(ChicopeeMasonSupply,Inc.)• CommitmentfromSpringfieldTechnologyPark,SpringfieldMass.• DemonstraKonstructuredesignedandreadytobuild• SeekingtesKngandvalidaKongrantsforfurthertesKng• Manufacturingplanwithregionalconcreteblockmanufacturers• DistribuKonplanwithregionalconcreteproductsdistributors