Power Mundo Executive Summary 4 11 10


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PowerMundo Executive Summary

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Power Mundo Executive Summary 4 11 10

  1. 1. EXECUTIVE SUMMARY The Challenge and Solution Imagine lighting your home with a single kerosene lantern or cooking dinner on a campfire in your kitchen. Amazingly, over Mission half the people in the world do not have access to safe and Improve Lives, Conserve Nature affordable products to meet their basic needs for these simple tasks. As a result, billions of people suffer from preventable illnesses and deplorable living conditions. However, there are Vision hundreds of affordable products that can safely meet people's Be the most effective and efficient daily needs while saving them money and conserving the company delivering healthy and environment. If these products exist then why aren’t billions of affordable clean tech products and people using them? Today there are no effective distribution channels to connect billions of people in developing countries to services to people in developing healthy and cost saving products. countries. To meet this enormous market opportunity PowerMundo (the “Company”) has built a wholesale distribution business to deliver healthy and cost saving products to millions of customers. PowerMundo coordinates a network of product designers, suppliers, and retailers to deliver clean technology. Additionally we partner with microfinance loan officers who advertise the products and provide credit for purchases. Additional partnerships with micro franchise developers enable entrepreneurs to access business training and microloans to become independent sales agents. Currently, PowerMundo is selling products in Peru. Ultimately PowerMundo’s sustainable business will improve people’s lives, create employment opportunities, and conserve natural resources. Products and Services PowerMundo manages a global network of suppliers, retailers, Healthy and Cost Saving Products sales people, and microfinance institutions, to design, brand, and distribute cost saving products. PowerMundo’s initial product line includes multiple models of efficient biomass cook stoves, wind-up radios, solar cell phone chargers, and solar lanterns and solar panels. All products distributed by PowerMundo quickly save customers money, and the products are healthy for people and the planet. For example, a $30 solar lantern eliminates a $15/month kerosene lamp expense for customers while minimizing indoor air pollution, fire hazards, and CO2 emissions. Through our network we provide access to life changing products and facilitate the creation of innovative products. Target Market Peru is one of the largest underserved markets for clean technology in Spanish speaking Latin America. Over nine million people (1 in 3) in Peru use traditional biomass cook stoves, and close to eight million live without electricity. In January 2010, Peru became an even more attractive market for PowerMundo since the government banned the use of kerosene to curb cocaine production. (Kerosene lanterns are a primary source of light for Peruvians living without electricity). Following our success in Peru, PowerMundo will expand operations to reach other Latin American markets and underserved areas around the globe. 1 of 3
  2. 2. Competitive Advantage The lack of established brands in the Latin American market and in the clean technology industry enables PowerMundo to build one brand name for multiple related products. PowerMundo delivers products efficiently and inexpensively by taking advantage of economies of scale in manufacturing, shipping and receiving. PowerMundo’s exclusivity agreements with product suppliers and our low prices encourage existing retail partners to use our distribution services. Innovation –Sears and Roebuck meets Amazon.com In 1888 Sears and Roebuck created a mail order business in the USA to provide products to people living in rural America. Now, PowerMundo is taking the lessons learned from Sears with the benefits of 21st century technology to improve access to healthy and affordable products for people in the developing world. By linking innovative products, access to microfinance, the internet, and global logistics PowerMundo will continue to build upon the business models of Sears and Amazon.com to improve lives and conserve nature. Management Team Our management team is uniquely positioned to execute the PowerMundo plan. Members have high level management and entrepreneurial experience in the fields of energy, project management, global logistics and economic development. Michael Callahan P.E., (Global Operations Manager), established business operations in foreign countries and coordinated international logistics for multi-million dollar projects while working for ExxonMobil in five West African countries during a four year period. Julio Mickle, (Peru General Manager), has managed product importation, sales, and distribution operations for multiple companies in Peru, such as Belcorp - CETCO S.A. Giuliano Giardino (Peru Operations Manager), previously managed human rights programs with support from the Word Bank and the United Nations Development Program. Dr. Ken Petersen, (advisor), is currently an associate professor of supply chain management at Colorado State University and has professional experience as Supply Officer in the United States Navy. Jim Welch, (advisor), an entrepreneur has started multiple successful solar companies. He is currently to CEO of Bella Energy. Paul Polak, (advisor), founded International Development enterprises (IDE) to develop practical solutions that attack poverty at its roots. Paul has helped design and produce low–cost, income–generating products that have already moved 17 million people out of poverty. Objective and Metrics PowerMundo’s objective for 2010: 1. Sell and distribute over 15,000 healthy and cost saving products in Peru. PowerMundo’s key business metrics: Financial Sustainability (NI) Dollar amount saved by customers Number of products sold Dollars made by sales agents Number of product innovations # of disposable batteries eliminated Number of sales agents CO2 emissions eliminated 2 of 3
  3. 3. Financial Return on Investment PowerMundo’s will sustain operations by earning a margin on each product sold. Additionally, because many of the products sold reduce carbon emissions, the enterprise will eventually sell carbon credits to a carbon offset broker. PowerMundo is currently seeking a $75,000 phase I investment. Approximately 75% of the funds will be used to purchase inventory. The remainder of the funds will be used for general and administrative expenses. The estimated breakeven point is less than two years. Within five years PowerMundo will have earned significant income and will become a highly attractive acquisition target for larger suppliers and multi-nationals wanting to enter this market. Social Return on Investment PowerMundo improves the health and economic conditions of families while creating a healthier environment. PowerMundo has quantified and demonstrated how the use of our products provide positive social and economic impacts in six areas: improved health, increased income, carbon savings, increased productivity, reduced deforestation, and improved education benefits. Health and Economic Benefits for PowerMundo’s customers An elderly grandmother lives in squatter shanty town in Lima and makes handmade weavings at night by candle light. She sells her goods to tourists so that she can take care of her two orphaned grandchildren. After attending PowerMundo’s product demonstration, she invested her hard earned money on a solar lantern. When the PowerMundo sales agent returned days later, she exclaimed how the solar lantern provided light for her grandchildren to study and eliminated the need to ever buy another candle. Now, she could spend less money on lighting and work more efficiently at night. Before the sales agent could leave, she insisted on purchasing a second product, a solar radio/light, so that she could have an additional light for her grandchildren to study and so that they could have access to news and information. Imagine helping millions of impoverished people save money, earn money, live healthier, and improve the planet. News and Information Watch PowerMundo’s six minute documentary and read news articles about PowerMundo at: www.powermundo.com/media-center-and-news.html Contacts PowerMundo SAC, Calle Las Galaxias 191, Urbanizacion La Alborada, Santiago de Surco, Lima, Peru Julio Mickle- Julio@powermundo.pe & Giuliano Giardino- Giuliano@powermundo.pe Nextel: 98 133*6578, Directo: 715 1586, Oficina: 715 1585, Fax: 715 1583, Fax Virtual: 718 7545 PowerMundo LLC, 621 1st Street, Golden, CO, USA 80403 Michael Callahan- Michael.Callahan@PowerMundo.com Cell: 970-420-1959, Office: 970-372-6611 www.PowerMundo.com 3 of 3