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The Investment Opportunity in the Growing Solar Market
- 1. © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 WUNDER CAPITAL Zero investor fees Asset-backed loans 112 channel partners in 27 states $5B annual financing market The Leading Marketplace Lender in U.S. Solar
- 2. Solar Added Most New Electricity Generation to U.S. Grid 50%0% 2010 2016 #002 2012 2014 39% 4% 9% 27% SOLAR 39% NATURAL GAS 29% © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCES: U.S. ENERGY INFORMATION ADMINISTRATION, SEIA, MERCURY & GTM WIND 26% 2016 New Generation Capacity Brought Online
- 3. Falling Costs Meet Electricity Production, 5.9% of U.S. GDP © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: EARTH POLICY INSTITUTE / BLOOMBERG #003PRICEOFSOLARPANEL($/W) $120$0 1975 2016 PRICE OF SOLAR PANELS GLOBAL SOLAR INSTALLATIONS 70K Cost Decreasing ‣ 50% decrease in last 5 years ‣ Averages ~10% annually for the past 40 years Production Ramping ‣ 58% CAGR since 2010 ‣ Solar now competing directly on economics GLOBALSOLARINSTALLATIONS $0.60 $101 0
- 4. Cost Reductions Free Market From Regulatory Risk $/kWh $0.22$0.00 PROJECTED AVERAGE ELECTRICITY PRICE COST COMPETITIVE REGIONS 2017 20222018 2019 2020 2021 HI AK CT CA MA NY VT RI NH ME DC NJ AL MD MI DE WI AZ KS MT OH TN IN NM CO MN MS SC SD WV GA KY WY ND PA FL OR UT IL NC IA NE WA LA MO AR NV OK ID TX VA ‣ All 50 states cost competitive by 2022 ‣ No additional government support needed $0.074 © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: EIA & EIA #004
- 5. A Multibillion Dollar Opportunity Below $1.5mm SIZE OF SYSTEM NEEDED ($) $0 #005 © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION $1.5MM #OFU.S.BUSINESSES CURRENT MARKET: $5B IN 2016 AVERAGE U.S. BUSINESS $177K SYSTEM
- 6. A Multibillion Dollar Opportunity Below $1.5mm SIZE OF SYSTEM NEEDED ($) $0 #006 © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION $1.5MM #OFU.S.BUSINESSES CURRENT MARKET: $5B IN 2016 AVERAGE U.S. BUSINESS $177K SYSTEM Market Opportunity
- 7. A Multibillion Dollar Opportunity Below $1.5mm CREDIT #007 © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION INVESTMENT GRADE #OFU.S.BUSINESSES AVERAGE U.S. BUSINESS $177K SYSTEM PRIMARY CREDIT DATA 2018+ FUNDS 2017 FUNDS
- 8. Solar Projects Provide a Strong Asset Backing For Loans $/kWh YEARS $0.125$0 2001 2015 #008 RETAIL ELECTRICITY COST © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION ‣ The highest value recovery strategy lies in selling a system’s electricity output,a high-margin stream of the most consistently-priced commodity of the past many decades (see graph below) ‣ By selling the electricity generated by recovered systems,SolarCity has realized $0.81 on the dollar in default across a securitized portfolio (Source: SolarCity 2014 securitization offering memo) $0.104 $0.073 SEE: WARRANTIES |
- 9. Current Wunder Debt Funds © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 #009 The Wunder Term Fund ‣ 8.5% target annual return ‣ 7 year term ‣ Loan portfolio secured by operating commercial solar projects ‣ Launched 07/21/2016 ‣ Term financings primary focus of lending activity ‣ Actively accepting new investments Wunder typically earns a 2.0% loan origination fee on loan volume, and a 1.5% loan service fee on loan payments 30+ Projects Financed Zero Losses to Date
- 10. Building Pipeline and Financing Volume © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 | *TRAILING 90-DAY AVERAGE #010ANNUALRUNRATE($) $M$0 CAPITAL RAISED FINANCING CONTRACTED* Q3 ‘16 Q4 ‘17Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 ‣ 5x growth in 2016 ‣ 44 to 112 solar channel partners ‣ High Net Worth, Investment Advisor, Family Office,and Foundation capital scaling into 2018 PRESENT DAY
- 11. From Emerging Player to Market Leader © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 #011 $B$0 FINANCING PROJECTIONS 2017 20222018 2019 2020 2021 ‣ Grow % of pipeline financed ‣ Expand financing products offered ‣ Massively increase commercial solar deployment in the United States,and then globally ANNUALRUNRATE($)
- 12. Built On a Dealer Network Spanning the U.S. © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 #012 ORIGINATED PROJECTS ‣ 112 solar installation partners in 27 states ‣ 30% approval rate ‣ 5 days vs. 30 to 60
- 13. The Team to Bring Finance, Energy, and Technology Together © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 #013 Bryan Birsic,Chief Executive Officer CONSULTING AND PRIVATE EQUITY AT BAIN & CO; INVESTOR IN COMMERCIAL LENDING LEADER ONDECK CAPITAL; SERIAL FOUNDER Dave Riess,Chief Technology Officer SENIOR RESEARCHER AT DOE NATIONAL LAB, LEADING SOFTWARE WORK ON GRID SOLAR INTEGRATION; SERIAL CHIEF TECHNOLOGY OFFICER Cameron Ramey,Director of Operations and Underwriting EXPERIENCED ENERGY CONSULTANT TO FEDERAL, STATE, AND UTILITY ENERGY DIVISIONS ON FORENSIC PROJECT ANALYSIS AND UNDERWRITING Fenway Summer U.S. DEPARTMENT OF DEFENSE
- 14. © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 Q&A
- 15. © WUNDER 2017 | 6/20/2017 The Wunder Term Fund, the Wunder Income Fund and the Wunder Bridge Fund (together, the “Funds”) are administered by The Wunder Company (“Wunder”). Please contact Wunder for more information. Wunder is headquartered in Boulder, Colorado. This presentation is not a solicitation, nor a solicitation of an offer to purchase, any securities. All sales of securities are made through the investment portal pursuant to approved documentation, including a subscription agreement and private placement memorandum (together, the “Investment Package”). Neither the Securities and Exchange Commission nor any state securities authority or other regulatory authority has approved or disapproved the securities offered by the Funds, nor passed upon the adequacy of the Investment Package. Any assertion to the contrary is a criminal offense. Neither the Funds nor Wunder are registered investment advisors or registered broker-dealers. No adviser-client or broker-client relationship shall exist because of any purchase of securities from the Funds. All third-party data in this report is derived from sources that Wunder deems to be reliable, but has not been independently verified. Wunder is not responsible for mistakes or misstatements in such data. Wunder is not responsible for any typographical errors. Investments can and do lose money. Results are not guaranteed. Trends observed in this report may not continue in the future. Read the Investment Package carefully before investing. Wunder does not provide, and no information provided by it shall constitute, legal advice, tax advice, or accounting advice. You should consult your legal, tax and accounting officer prior to making an investment or sending any money to Wunder or the Funds. Any income you receive from the Funds may be taxable. Wunder intends to fully comply with all applicable laws regarding the reporting of any income from the Funds to tax authorities. Wunder rigorously protects its intellectual property. Unless expressly set forth in writing, no license is granted, express or implied, to use the trademarks, service marks or copyrights of Wunder or its affiliates without the prior written consent of Wunder. No materials regarding the Investment Package may be copied, distributed, or shared with any third party without the prior written consent of Wunder. Legal & Disclaimer #015
- 16. © WUNDER 2017 | 6/20/2017 | SEE DISCLAIMER: SLIDE 15 WUNDER CAPITAL Visit www.WunderCapital.com to get started today!