Legend 2013 agm april 11


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Legend 2013 agm april 11

  1. 1. Legend Power Systems Inc.2013 AGMApril 11, 2013
  2. 2. Forward Looking StatementThis presentation contains projections and forward-looking information thatinvolve various risks and uncertainties regarding future events. Suchforward-looking information can include without limitation statementsbased on current expectations involving a number of risks and uncertaintiesand are not guarantees of future performance of Legend Power Systems Inc.(“the Company”). These risks and uncertainties could cause actual resultsand future events to differ materially from those anticipated in suchinformation. These and all subsequent written and oral forward-lookingstatements are based on estimates and opinions of management on thedates they are made and expressly qualified in their entirety by this notice.The Company assumes no obligation to update forward-looking informationshould circumstances or management’s estimates or opinions change.
  3. 3. Strategy Review• Implement / prove new sales strategy• Leverage Ontario strategy/results andresources for new territory start up– Testimonials / results– Establish “anchor tenant” accounts and “pull” indistribution channel• Utilize region specific talent to grow territory• Work out of distributors locations– Provide expertise at low overheads
  4. 4. Fiscal 2011/12Goal - Prove our sales model works– Started last fiscal with new sales process / team– Focus on Ontario retail and commercial officemarkets– Experienced success with constant “tweaking”– Secured “brand” account commitments• 100 plus location potential• “Try and buy” philosophy – “Prove it”– Long gap between commitment and install (why?)
  5. 5. Q1 2011/2012• $440,650 revenue Q1 recorded• 8 units at 7 locations + 4 harmonizers SA• Secured bookings of $700K for Q2• Continued to secure “brand” accounts• Significant product / install failure (lateNovember)• AVR - evaluation – testing• Hold on “commissioning” but installs continued• AVR failure #2 Dec 30th (unrelated issues)• $500K raise was minimum – little “wiggle” room
  6. 6. Q2 2012/13• January 4th – AVR problem in customers building• Test / Fix / Test / Fix .....– AVR testing – Westfair– Rental of large load bank• Continued to install transformer and housing– Shutdown up to 8 hours– Booked additional date for “commissioning”– Rev rec. and invoicing delayed until commissioning– Cash flow dramatically affected• Customer “experience” well managed• Cash tight - $600k raise
  7. 7. Impact• Unexpected happened• Have orders but not cash• Cash flow 5 months behind plan• Lost some credibility
  8. 8. Q3 Thoughts• Large back log of orders– Haven’t lost one order / customer• Booking new install / commissioning dates• Managing cash flow – cost containment• Booking new commitments
  9. 9. Product• New transformer– New platform / the future– Enhancements• Product challenges– Limited testing capabilities• Where are we now?• Future
  10. 10. Building BlocksProduct• Current product focused on Canadian Market• Need platform that is easily adaptable toadditional segments & international markets– Appropriately size and feature set for all markets– New transformer partner can adapt platform• Distributor “ready” product – multi markets
  11. 11. Building Blocks• Continue to develop Ontario market– Highest energy rates in Canada– Strong government rebates– Concentrated population & business hub• Demand for product has never been higher.– Customer needs: save energy, money and lower GHG emissions all with 3 year ROI– As credibility increases, so does demand.• Target Building Profile: Commercial Buildings between 50,000 to 200,000 squarefeet– A: Property Management (office towers) and Retail– B: Schools & Mixed use facilities (public buildings)• Growth: Focus on markets with high electricity cost– Top 3 regional US markets = $1.5B+ Opportunity• New York• New Jersey• New EnglandMarkets
  12. 12. …Building Blocks• Replicate the Ontario Sales model to expand in to new markets.• Proven low cost growth model• Leverage existing international accounts as case studies as a potential entrypoint• Leverage partners that already have “brand / trust” in ourgeo/target markets• Electrical Contractors• Engineering Firms• Power Utilities• Geo specific “targeted” communications– Product Success/Testimonials to build credibility in new markets• Case Studies• Product ChampionMarkets
  13. 13. Fiscal 2012/13 View• Lost 5 months with product challenges• Game back on• Lots of interest and commitments (Demand)• Product must work as planned• Product performance = credibility = GROWTH• Begin geographical and product expansion
  14. 14. Strategic DirectionTo be the world’s leading provider of electricalenergy consumption reduction technologies• Concentrate/focus on proving out businessstrategy in Ontario– Build out sales to $10M annually• Expand to eastern US (10/10 Plan)• Complete & implement ROW (distributors)• Communicate results – enhance value
  15. 15. Questions?