THE COMPANY• Olie, Inc. (Olie) is a company focused on emerging, clean energy storage technologies.• Olie owns worldwide rights to the patented Rechargeable Alkaline (RAMcell) battery technology - considered one of the most cost effective and environmentally responsible battery technologies in the world.• Small format RAMcells have been sold to leading retailer and to Original Equipment Manufacturers (OEM) since 1994.• Large format RAMcells are currently under development and will target the $48 billion lead acid battery market.• Large Format RAMcells are expected to revolutionize the battery market.• Historically, small format RAMcell batteries and charger kits were sold at retail in Canada.• New retail business is now in place in the US, Europe and South Africa with new opportunities being pursued in several markets.• A recent focus on the use of RAMcells in OEM products including solar garden lights and LED lighting and has resulted in a growing OEM business. OLIE, INC.
THE RAMCELL TECHNOLOGY• The RAMcell technology was developed by the same scientist who invented the single-use alkaline battery technology.• 35 patents issued and over $40 million spent on R&D to date.• RAMcells are pre-charged and ready to use.• RAMcells do not suffer from rapid self discharge issues like other rechargeable batteries and hold their charge for 7-years.• Hassle free charging – RAMcell can be recharge at any time with no memory effect.• 1000’s recharges depending on use and frequency of recharging.• Available in AAA, AA, C and D sizes and 12, 9 and 6 volt battery packs.• Large format RAMcells are 1/3 the weight and size of a comparable lead acid battery.• RAMcells are low cost, and use readily available raw materials.• RAMcell use no heavy metals and is the only consumer battery to be awarded the prestigious EcoLogo. OLIE, INC.
RECENT HIGHLIGHTS• Through an asset purchase in 2012, Olie has combined the small format and large format RAMcell businesses.• The acquisition brings together all patents, know-how, laboratories, manufacturing, personnel, supply contracts and business relationships.• This acquisition is key to completing the development and market launch of the large format RAMcell.• In association with this acquisition and a new focus on OEM applications the sale of OEM batteries grew by over 300% in 2012.• OEM products using RAMcells including solar lights and spotlights began selling in 2012 at Home Depot US, Wal-Mart US, West Marine, Wal-Mart Canada and other retailers.• Retail sales of batteries and charger kits are poised to expand into several new markets in 2013.• Based on its R&D, manufacturing and marketing expertise Olie has been approached to bring to market new battery and charging technologies. OLIE, INC.
GLOBAL BATTERY MARKET US$89 BILLION/YEAR - 2012 Global Shipments 24% Rechargeable Batteries 72% Alternative Energy4% Storage Primary BatteriesData from Freedonia Group, Inc. OLIE, INC.
RECHARGEABLE BATTERY MARKET US$63 BILLION/YEAR - 2012 Global Shipments 20% 8% Lead Acid 72% Nickel LithiumData from Freedonia Group, Inc. OLIE, INC.
RECENT MARKET DEVELOPMENTS• In 2011 China closed over 1,500 lead-acid battery plants due to health issues related to toxic lead.• Issues continue with lithium battery fires and explosions.• Raw material price fluctuations.• NiCd batteries banned in Europe in 2008 due to health issues related to toxic cadmium. OLIE, INC.
SMALL FORMAT OEM SALES• RAMcells are now being used in a growing number of OEM products replacing lead acid, NiCd, NiMH, lithium and single-use batteries.• A recent focus on products that have historically used lead acid batteries has resulted in significant new business.• A number of new OEM products using RAMcells are under development.• Sales are conducted through contract manufactures, agents and direct with OEMs. OLIE, INC.
SMALL FORMAT RETAIL SALES• RAMcell is the lowest cost rechargeable battery and the only one that can replace disposable alkaline batteries in every application.• RAMcell batteries and charger kits have been sold under several brands and retailer private labels since 1994.• Available in Canada, US, Europe, and South Africa.• Sales in China and India to start in 2013.• Retail sales are conducted through a growing network of distributors. OLIE, INC.
RAMcell CHARGERS • Several innovative chargers are available. • 2-position, 4-position and 8 position chargers. • Wall-plug and compact USB chargers. OLIE, INC.
SMALL FORMAT RAMcell MANUFACTURING• ISO 9001 certified plant located in Nova Scotia, Canada.• 40,000-sq. ft. facility on 10.5 acres of industrial land with room for expansion on additional 5 acres.• Two automated lines with a total annual capacity of over 100 million AA and AAA batteries with: • Assembly • Processing • Packaging • QC operations• Land and equipment are valued at over $5 million. OLIE, INC.
LARGE FORMAT RAMcellsAll the Advantages of SmallFormat RAMcell with:- New construction format- Same raw materials used- Improved charge and discharge rates- Better utilization of active materials- Scalable to any size battery- 1/3 weight & size of lead acid battery- Maintenance free- No heavy metals used OLIE, INC.
SIZE & WEIGHT ADVANTAGE RAMcell 100 Amp Hour RAMcell 100 Amp Hour Battery vs Battery VS Lead Acid 100 Amp Hour Lead Acid 34 Amp Hour Battery Battery OLIE, INC.
RAMcell SHELF LIFE ADVANTAGE Charge Retention at 20°C NiMH NiCd Lead Acid RAMcell MnZn 0 1 2 3 4 5 6 7 Years OLIE, INC.
RAMcell ENERGY DENSITY ADVANTAGE Projected RAMCELL Lithium FLAT PLATE NIMH Lead Acid Wh/Kg 30 67 90 150 150 THE POWER OF RAMCELL OLIE, INC.
RAMCELL COST ADVANTAGE $ / KW Hour Lithium RAMCELL NIMH FLAT PLATE Lead Acid Projected$/KW Hour* ~$1000 $550 $170$120 $150 * : $ per KWh value are taken from public information and internal cost estimates . OLIE, INC.
THE ENVIRONMENTAL ADVANTAGE• 3 billion batteries end up in US landfills each year.• This equates to over 100,000 tons of battery waste per year in our landfills.• The toxic metals used in batteries: lead, cadmium, mercury, and nickel –are all poisonous to humans.• RAMcells contain NO toxic metals.• RAMcells significantly reduce the amount EcoLogoTM is North America’s largest, most of heavy metals and waste entering respected environmental standard and certification mark landfill sites.• RAMcell is the only battery to be awarded the prestigious EcoLogo. OLIE, INC.
LARGE FORMAT RAMcell MARKET FOCUS Off Grid : $10 billion/year(1) • Cell tower • Traffic control systems • Cable network systems • Uninterrupted Power Supply • Off-grid storage • Wind • Solar … Automotive : $30 billion/year(2) • Starter Lights & Ignition • Hybrid electric vehicle applications(1) Lux Research, June 2011 (2) Lucintel, August 2012 OLIE, INC.
STRATEGIC PARTNERSHIPSNATIONAL RESEARCH COUNCILCANADANote: Joint or sponsored OLIE, INC.
LEADERSHIP TEAM Head office Management Directors World Trade Center Wayne Hartford Gregg K. Vernon P.Eng Suite 404 - 999 President Executive Chairman Canada Place Stephen Meldrum Vancouver BC Frank Borowicz QC CA(HON) Chief Operating Officer Independent Director Josef Daniel-Ivad PhDToronto office Chief Technology Officer Grant Vernon 30 Pollard St Dorlyn Evancic Independent Director Richmond Hill Chief Financial Officer Ontario Rob Fashler Chief IP Officer Battery Plant Doug McKillop 41 Tantramar Cres Plant Manager Amherst Nova Scotia OLIE, INC.
SUMMARYCost Reducing and Sustainable Technology • RAMcell is a proven technology • Large format RAMcell is a Game Changer for power storage • Highest performance/cost ratio for rechargeable battery • High energy density • “Industry Best” shelf life with lowest self discharge • Readily available, Lowest Cost anode/cathode materials • Proven Manufacturing expertise and operating plantExclusive IP • Current portfolio of 35 worldwide patents in placeExperienced Team • Highly experienced management team • Global Perspective • Strong R&D partners • Strong strategic alliances OLIE, INC.
APPENDIX- Financial Information- Small Format Customer Overview- Small Format Technical Information OLIE, INC.
USE OF PROCEEDS $500,000 $100,000 $1,000,000 $4,000,000 $1,200,000 $1,300,000 $1,900,000 Flat-plate high speed line engineering, procurement Pilot line design/procurement Flat-plate Cell/battery development, testing, design Corporate overhead and working capital NSBI Debt acquisition Working capital, material and final goods inventory for cylindrical business Patent & IP costs 25
OEM Battery Sales Ramp-up• 2011 Total Cells sold 1,457,293• 2012 Total Cells Sold: 4,054,777• Increase of 178% OLIE, INC.
Small Format RAMcell Customer Overview 28 OLIE, INC.
OEM Sales• OEM sales are RAMcells sold for use in OEM battery operated products.• RAMcells are replacing lead acid, NiCd, NiMH, lithium, and single-use batteries.• A recent focus on products that have used lead acid batteries has resulted in significant new business with products now available at Wal-Mart, Home Depot US, West Marine, others.• Up to 1/3 the weight and size of lead acid batteries.• Sales are conducted through contract manufactures, agents and direct with OEMs. OLIE, INC.
BRINKMANN SPOTLIGHTS• Several Spotlight products using RAMcell battery packs are now available in the US and Canada from Brinkmann.• Products are sold at Wal-Mart US, Home Depot US, West Marine, Pep Boys, Tractor Supply and other North American retailers.• RAMcells are replacing lead acid batteries that had traditionally been used by Brinkmann.• New lighting products including flashlights are now under development.• Brinkmann has been a customer since 2009 with over 5 million RAMcells purchased to date.• Purchases are made monthly. OLIE, INC.
FUSION SOLAR• Fusion, a leading North American solar lighting company has switched to RAMcell for use in their solar lights.• Customers include Wal-Mart, Costco, Canadian Tire, and Home Depot.• In addition to the use of RAMcells in their lights they are also selling AA and AAA 4-packs and 8-packs to support their lighting business.• Wal-Mart Canada and several other retailers have ordered these packs.• Fusion has been a customer since October 2012 with 750,000 batteries purchased to date.• Purchases are made in the fall and winter to coincide with the spring sale of their solar lights. OLIE, INC.
BEYOND PLATINUM TV REMOTES• Beyond Platinum, based in South Africa is replacing disposable alkaline batteries with RAMcells.• These batteries are being sold along with their TV remote controls to MultiChoice, the largest cable provider in Africa.• Both companies switched to RAMcell for environmental reasons.• RAMcells are ideally and uniquely suited for use in remote controls.• Up to 10 years of service so RAMcells can last for the life of the remote.• Beyond Platinum has been a customer since 2011 with over 2 million batteries purchased to date.• Purchases are made quarterly. OLIE, INC.
ONZO ENERGY MONITORS• RAMcells are used by Onzo in their new energy monitors.• These products monitor information on the amount of electricity consumers use in terms of power, cost and their carbon footprint.• Onzo has been a customer since 2010 with 1.5 million batteries purchased to date.• Purchases are made quarterly. OLIE, INC.
QUANTYS SOLAR• German based QUANTYS is using RAMcells in their line of solar powered products.• Products include solar powered clocks, and smoke detectors.• RAMcells can provide up to 10 years of service so they can last for the life of the QUANTYS products.• QUANTYS has been a customer since 2010 with 500,000 batteries purchased to date.• Purchases are made quarterly. OLIE, INC.
CHERRY COMPUTERS• RAMcells are ideally suited for use in mice, keyboards and other computer accessories.• RAMcells are currently being used by German computer supplier Cherry in wireless mice and keyboards.• Opportunities being pursued for both single-cell use and built in battery packs• Cherry has been a customer since 2009 with close 500,000 batteries purchased to date.• Purchases are made semi-annually. OLIE, INC.
COSTCO US SOLAR• The Pure Energy brand has recently been named one of 3 battery brands to Costco’s solar lighting suppliers.• We are in discussions with these suppliers regarding sales of other retailers in the US, Canada, Europe and Asia.• Sales are expected in the early 2014 to coincide with the spring sales of solar lights. OLIE, INC.
OEM DEVELOPMENTBASED ON RECENT SUCCESSES SEVERAL NEWOEM OPPORTUNITIES ARE IN DEVELOPMENT:• Logitech – Solar Keyboard• US Military - Various• Coleman – Flashlights• Stanley - Spotlights• Global X – Solar• Paradise– Solar• Dorcy – Flashlights• Polyvision – Educational Products• Seasonal Specialties – Solar• Huatai - Flashlights OLIE, INC.
Retail Sales• Retail sales are the sale of batteries and charger kits to consumers through retail stores, e-commerce sites, and home shopping networks.• RAMcells are old under several brand names including retailer private label.• RAMcells are ideal for consumer use as they are cost effective, green, ready to use out of the package and can be charged over 100 times.• RAMcells are available in AAA, AA, C,D sizes.• Sales are conducted through a growing network of distributors. OLIE, INC.
Chargers• Several innovative chargers available.• 2-position, 4-position and 8 position chargers.• Wall-plug and compact USB chargers. OLIE, INC.
CANADIAN SALES• RAMcell products have been sold in Canada since 1994.• Products are sold under the Pure Energy brand and retailer private label.• Wal-Mart has been selling RAMcells since 1996 and Canadian Tire chose RAMcell for their prestigious eco- friendly line of Blue Planet products in 2009.• Several new Canadian accounts signing on for 2013.• To date over 50 million RAMcell have been sold by Canadian retailers.• Purchases are made quarterly. OLIE, INC.
IGO SALES• iGo is a leading provider of power management solutions for charging mobile devices and reducing power consumption.• iGo now has 40 accounts carrying RAMcell – including Frys Electronics, Micro Electronics, Brandsmart.• Sales taking place in the US, Canada, Europe, Australia, Asia.• Basketball legend Shaquille O’Neal is iGo’s spokesperson for RAMcell products.• Several large retailers are reviewing the product line for 2013.• iGo has been a customer since 2011 with 4.5 million batteries purchased to date.• Purchases are made quarterly. OLIE, INC.
SOUTH AFRICAN SALES• In addition to the use of RAMcells in their TV remotes, Beyond Platinum is now selling products at MultiChoice retail outlets.• They plan to introduce products to a wide number of retailers in 2013.• Retail sales began in late 2012 with 200,000 batteries sold.• Purchases are made quarterly. OLIE, INC.
Huatai China• Huatai is one of the largest battery companies in the world.• They currently sell over 2.5 billion batteries annually.• Batteries are sold in over 60 countries including throughout Europe, North America, Africa, and The Middle East.• They have an extensive network of domestic and export distribution and retail partners.• Discussions on distribution and eventual production in China have been ongoing with initial retail sales expected by the summer of 2013. OLIE, INC.
RETAIL SALES DEVELOPMENTTHE COMPANY IS PURSUING SEVERAL RETAILSALES AND DISTRIBUTION OPPORTUNITIES:• Philips - Europe• Rayovac – US• DWP – Pakistan• ON Power – Europe, China•• HoldTec - China Duruman – Turkey/Middle East Duruman• Fusion– Canada• Tri-vision – US/Canada OLIE, INC.
Conclusion• There are several current customers for retail and OEM sales:• Brinkmann - Customer since 2009 with over 5 million RAMcells purchased to date.• Fusion - Customer since October 2012 with 750,000 batteries purchased to date. Beyond Platinum• Beyond Platinum - Customer since 2011 with over 2 million batteries purchased to date.• Onzo - Customer since 2010 with 1.5 million batteries purchased to date.• QUANTYS - Customer since 2010 with 500,000 batteries purchased to date.• Cherry - Customer since 2009 with close 500,000 batteries purchased to date.• Canadian Sales – Customers since 1996 with over 50 million batteries sold to date.• iGo - Customer since 2011 with 4.5 million batteries purchased to date. OLIE, INC.
Small Format RAMcell Technical Overview 46 OLIE, INC.
BenefitsRAMcell• Thousands of recharge cycles• Brighter lights due to higher voltage• Batteries have a 7-year shelf life and are ready to use out of the box• Longer run times due to the sloping discharge profile• No safety issues like lithium• Non toxic with no environmental issues like NiCd and NiMH OLIE, INC.
Brighter LightHigher voltage NiMH/NiCd Rechargeable Battery Alkaline Battery * Incomparison with nickel based AA 600mAh OLIE, INC.
THOUSANDSOf cycles 1.4 1=300mAh, 2=400mAh, 3=500mAh 1.3 Discharge End Voltage (V) 1.2 1.1 1 1.0 3 2 0.9 0.8 0 200 400 600 800 1000 Number of Cycles OLIE, INC.
Rechargeable Comparison RECHARGEABLE ALKALINE NiCd & NiMH LITHIUM• Comes fully charged • Must be charged first • Comes fully charged• 1.5V system • 1.2V system • 3.2V is not compatible• Holds charge for 7 years with current solar • 30% capacity loss per• 2000 mAh capacity circuitry month• • 10% capacity loss per No memory problem • 600-800 mAh capacity month• No safety issues • Memory effect problem • 400 mAh capacity• No toxic chemicals • No safety issues • No memory problem• Low price • Toxic Cadmium & Nickel • Very flammable • Low price electrolyte • Toxic Cobalt or Nickel • High price OLIE, INC.
LEGAL ADVISORY These slides and oral presentation contains certain “forward-looking statements” and “forward-looking information” under applicable securities laws concerning the business, operations and financial performance and condition of Olie, Inc. (“Olie”) and or its wholly owned subsidiary Hybrid Energy Technologies Inc. (“HET”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated operating costs, production forecasts and technology development of Olie; synergies and financial impact of completed acquisitions; the benefits of the acquisitions and the development potential of the Olie proprietary technology; the future price of materials; the realization of product sales estimates; the timing and amount of estimated future production; costs of production; success of engineering activities; potential licensing of the Olie’s technology; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Olie and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating materials prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labor disputes and other risks associated with the industry, failure of plant, equipment or processes to operate as anticipated, acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Olie has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. Olie undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of future activities and results that will be encountered as the business is developed. Comparative market information is as of a date prior to the date of this presentation. OLIE, INC.