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Ba702 sum 2012 - hilyard second draft presentation 1

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Ba702 sum 2012 - hilyard second draft presentation 1

  1. 1. rna tive ant AlteAdam y, I nc. En erg ilya rd Alex H BA 702 – SUMMER 2012
  2. 2. The Problem Current durability of solar panels and wind turbines Warranties don’t cover effects of environment Cost to repair damaged unit Overall quality of solar panels and wind turbines
  3. 3. Value Proposition Double the industry average warranty Warranty covers the product, not just the original customer Most stringent environmental testing on the market Potential relationships with large retailers Cost effective to competitors due to parts manufacturer relationships
  4. 4. Capital Currently funded from capital put up by Alex Hilyard, CEO Seeking $5M for a 25% equity in the company Start with solar panels, then add wind turbines and hybrid solar/wind turbines Equity stake expected to reach $5M in 2.5 years Expand operations globally by establishing manufacturing companies starting in Mexico
  5. 5. Company DescriptionAdamant Alternative Energy Inc. (AAE) was foundedin October 2011 by Alex HilyardLocated currently in Houston, TexasOur goal is to develop a product combining solar andwind technology which will have an increased level ofconsistency for energy production BA 702 – SUMMER 2012
  6. 6. Company DescriptionPlan to offer 3 solar packages ranging from 17,000watts to 38,000 wattsThrough AAE market research, anticipate over 800solar packages to be sold in North America in firstyear, with total sales of $10 million expected BA 702 – SUMMER 2012
  7. 7. Industry Analysis Wind TurbineSolar Panel Industry Industry Growth rate of 61.5% from Expected to increase 2.6% 2009 to 2010 annually from 2011 to 2016 Industry profit margin Industry profit margin averages 5% annually averages 7.8% annually BA 702 – SUMMER 2012
  8. 8. Solar & Wind Distribution BA 702 – SUMMER 2012
  9. 9. Target Market Homeowners Small Businesses Ages 30-55 (112M people) Companies with less than 100 employees (5.75M) Established career with above average income (12M) Financial stable and able to make investments in Knowledge of technology business improvement (8M) (1.15M) Eco-conscious buying habits Wanting to become more (6M) energy independent (750K) BA 702 – SUMMER 2012
  10. 10. The Competition Solar Panels Wind Turbine Companies Companies Panasonic/Sanyo Bergery Windpower Sharp Hummer Wind Suntech Southwest Windpower Solarworld Urban Green Energy BA 702 – SUMMER 2012
  11. 11. The Competition Competitive Barriers To Entry Advantages Quality & Durability High entry cost Long-term customer Government regulation relationships Electrical grid deficiencies Quick & effective customer service Globalization BA 702 – SUMMER 2012
  12. 12. Strategic Position & RiskAnalysisTo be a leader in residential & small business solarpanels and wind turbines, AAE has developed astrategic position emphasizing: Reliable products using the latest technology Ongoing R&D into design efficiencies as well as new alternate energy sources Customer service to head-off potential problems BA 702 – SUMMER 2012
  13. 13. Marketing PlanTraditional Vehicles Online Vehicles No TV or radio ads Social Media Print ads in national SEM campaigns magazines and trade journals SEO optimization Active PR campaigns E-Mail campaigns “Capturing Energy from Nature” BA 702 – SUMMER 2012
  14. 14. Operations PlanCorporate headquarters and distribution facility inHouston TexasPlanned 60 employees in first yearProduction facility to run at 95% capacityJIT and FIFO used in operations12 total retailers used for distribution BA 702 – SUMMER 2012
  15. 15. Operations Plan Time-Ef fective Cost-Ef fective Programs Programs Production line Global expansion (300k implementation savings) Additional surge in Development of test employees to meet demand procedures (10k savings) Centrally located production facility BA 702 – SUMMER 2012
  16. 16. Management & Organization BA 702 – SUMMER 2012
  17. 17. Social Responsibility &SustainabilityCommitted to being a positive influence in thecommunity and the world in which it operatesAAE feels it has a responsibility to do the right thingand think about every one of its stakeholdersSupports local sports teams and Habit for HumanityAAE is a carbon neutral company and uses its ownproducts to reduce its footprint BA 702 – SUMMER 2012
  18. 18. Development, Milestones & ExitPlanCommitment to reinvest 12% of earnings back in to R&DAnnual sales are projected to increase to $160 million by2016AAE is seeking $5 million for the completion of their windturbine manufacturing facility in MexicoGoal to reach total market share of approximately 1% insmall wind and .75% in solar. BA 702 – SUMMER 2012
  19. 19. Development, Milestones & ExitPlanAAE has the authority to issue up to 1 million sharesof common stockUpon reaching $50 million in revenues annually AAEwill go public with the sharesAAE expects to reach this milestone within 3.5 years BA 702 – SUMMER 2012
  20. 20. Income Statement 2013 2014 2015 2016 2017Gross $6,000,000 $7,972,400 $20,000,000 $42,000,000 $75,000,000SalesNet Sales $5,349,400 $7,133,960 $17,900,000 $37,675,000 $67,365,000COGS $1,069,880 $1,212,773 $2,685,000 $5,651,250 $10,104,750Gross $4,279,520 $5,921,187 $15,215,000 $32,023,750 $57,260,250ProfitTotal $5,178,500 $6,439,738 $14,898,000 $20,861,000 $30,467,000ExpensesNet Profit ($1,033,827) ($440,769) $269,450 $9,488,338 $22,774,263 BA 702 – SUMMER 2012
  21. 21. Cash Flow Summary 2014 2015 2016 2017Cash from Sales $7,972,400 $20,000,000 $42,000,000 $75,000,000Cash from $5,961,200 $792,000 $1,210,000 $1,515,000FinancingCash $8,710,678 $19,869,500 $32,205,500 $46,923,500DisbursementsNet Cash Flow $5,223,222 $922,500 $11,004,500 $29,591,500Ending Cash $341,734 $356,250 $1,919,750 $6,861,750Balance BA 702 – SUMMER 2012
  22. 22. Balance Sheet Summary 2014 2015 2016 2017Current Assets $2,206,734 $2,406,250 $5,069,750 $14,161,750Fixed Assets $6,028,000 $6,573,750 $7,532,500 $9,032,500Current $259,734 $630,000 $900,000 $1,360,000LiabilitiesLong-Term $275,000 $350,000 $402,250 $600,250LiabilitiesNet Worth $7,700,000 $8,000,000 $11,300,000 $21,234,000 BA 702 – SUMMER 2012
  23. 23. The Financials Break Even Uses of Funds 2014: $5,287,477 in sales Leasehold Improvements (15%) 2015: $11,901,214 in sales Equipment & Furniture (20%) Investor Payback: 1Q 2016 Purchase of Inventory (20%) Staff Expansion (25%) Marketing Expansion (15%) Business Expansion (5%) BA 702 – SUMMER 2012
  24. 24. Conclusion Asking for $5 million from investors Investor equity expected to match original investment in less than 3.5 years Revenues anticipated to increase by 2000% in 5 years from $8 million to $160 million. Concentration on quality products and customer/community service Global expansion to Mexico and Spain in the next 3 years BA 702 – SUMMER 2012
  25. 25. Questions? BA 702 – SUMMER 2012

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