1. Life Cycle Roof
(patent pending)
Winner:
California CTO
Green Building Category
Brian Pierson, CEO
bpierson@tru2earth.com
(831) 239-2138
2. We design and manufacture long-lived roofing materials made
from recycled PET plastic that out-compete asphalt shingles (a
$2.5B market) by price, energy performance, and
environmental safety.
• Each shingle uses 25 recycled water bottles
• @ 2200 shingles per home, the average home sequesters 55,000 PET water
bottles for 50+ years which are recyclable into a new tru2earth roof
• Other plastics can be used
o
• Roofs are 50 (F) cooler, which saves 20-25% on summer cooling costs ($200-$300
annually)
Q1 2013 Proprietary & Confidential Page 2 of 10
3. The tru2earth Opportunity is premised upon
two environmental axioms:
1. Un-recycled PET (Polyethylene terephthalate) plastic is an unsustainable
global problem
• The U.S. alone uses 2 million PET bottles every 5 minutes. This is 28 billion bottles
annually, and 80% are thrown away.
• Annually, 7.7 billion pounds of PET plastic waste is produced.
• We use 17 million barrels of oil to manufacture those 28 billion bottles, producing 2.5
million tons of CO2.
2. Asphalt roofing shingles are an unsustainable, global problem
• Asphalt shingles last less than 18 years and then become the 3rd largest construction
landfill volume (after wood and drywall) and they never break down.
• Toxic petroleum by-products leach and off gas during the shingle’s lifespan; shingles
cannot be used for water-harvesting and are harmful to human health.
• Total pre and post consumer shingle landfill waste is 10 million tons. At 45%
petroleum…4.5 million tons or 33 million barrels of oil go into landfills annually
Q1 2013 Proprietary & Confidential Page 3 of 10
4. Life Cycle Roof vs. Asphalt Shingles
TCO
tru2earth Asphalt
Competitively Asphalt Shingle
~$250 $125 - $250 ($22,004)
Priced (per square) NPV
Installation Costs ~$150 ~$150 Lifetime
$143,754
tru2earth NPV
Lightweight
Long life span NPV Benefit $165,758
50+ <20
(years)
Recycled/
Recyclable IRR 23%
Best Insulation &
+ 30% tru2earth
Heat Dissipation 6 Years
Payback Period
Non-toxic
Easy to Install
Easy to Maintain
Q1 2013 Proprietary & Confidential Page 4 of 10
5. Selling Model
~$200 per Square
Year 1+: Direct
DEEP GREEN (15%)
Will pay more for sustainable 46% Margin
Residential
products
Commercial
Architects,
Green Builders
Roofers
LIGHT GREEN (65%)
Will buy sustainable, but
price sensitive
Year 2+: Indirect Distributors,
MAINSTREAM (20%) Wholesalers
Price & reliability only 35% Margin
Q1 2013 Proprietary & Confidential Page 5 of 10
6. Marketing Model
Eugene
Redding Each of these cities has:
Chico Years 1 & 2:
• Aggressive Sustainable Building
<500 miles Codes
Santa
High touch, Road shows
Rosa
San Rafael
Sac/Davis
• Local Green Building Council
San
Walnut Creek
Francisco • Civic Events
• Green Influencers
Oakland
San Jose
Monterey
• Public Radio station
Bay
SLO
Santa Maria
Santa Barbara
Ventura Pasadena
Santa Monica
Q1 2013 Proprietary & Confidential Page 6 of 10
7. Status & Go to Market
Large & Regional Manufacturing
Growth & Scale Operational Hires
(A Round - $2M)
Revenue
Dedicated Sales
Lead Gen – PR, database, road shows, conferences
Go to Market, Web & Mar Com
Early Production
Mold & Production
(1st Revenue &
$500K Angels ) Early Sales
Usability & Documentation
IP – Provisionals & Patents Product Development
Design & Prototyping (Self - $50K)
Materials & Testing
Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
We are here
Q1 2013 Proprietary & Confidential Page 7 of 10
8. Team
Brian Pierson - CEO
• Marketing, CorpDev, BusDev, Start-up, P&L
Responsibility
Allen Preuss - Founder, Engineer
• Globally recognized expert in molding,
performance, applications of PET
Mike Thompson - Founder, Engineer
• Roofer, Industrial Designer, Mechanical
Engineer
Jaclyn Pitera - VP, Strategy and
Sustainability
• Sustainable Business Expert, Life Cycle
Analysis, LEED AP
Q1 2013 Proprietary & Confidential Page 8 of 10
10. “Triple Bottom Line” Is a Core
Differentiator for Initial Market Success
Planet
• 71% smaller carbon footprint than asphalt, 44% less embodied energy
• Less asphalt into landfills, PET plastic out of landfills, “ cradle to cradle” product
People
• Local jobs in materials and manufacturing is our business strategy for LEED/LOHAS customers
• Non-toxic product (for installers, homeowners)
Profit
• We can’t serve the planet and local employment unless we stay in business (projected >50%
Gross Margin, >15% Net, Year 2 Cash Flow positive)
Mission Statement
tru2earth, through quality products and company operations, will substantively benefit
community energy and water efficiency, reduce carbon emissions and waste, and
strengthen local economic diversity.
Vision Statement
To produce a compelling, positive impact for our stakeholders and the earth.
Q1 2013 Proprietary & Confidential Page 10 of 10
11. Currently: 2 Patents Pending, Trademarks,
Trade Secret Process & Trade Secret Ingredients
Q3/2013 - $250K Angel Round
• $200K Revenue, 2 Employees,
Injection Molds (no Founder salaries)
-71%
Q3/2014 - $2MM “A” Round
• Scale - >200% CAGR in $2.5B Market
• $15MM exit in Year 3 or $150MM
Market Cap in Year 5
Q1 2013 Proprietary & Confidential Page 11 of 10
Editor's Notes
I’d like to take up your time with 9 slides for about 10 minutes.A $250,000 Angel round and a $2MM investment one year from now gets this company to a very attractive state for an acquisition in a very active market.
I’d like to take up your time with 9 slides for about 10 minutes.A $250,000 Angel round and a $2MM investment one year from now gets this company to a very attractive state for an acquisition in a very active market.
We have done our market validation. We’ve spoken to architects, builders and consumers, nobody is happy with the status quo.Asphalt shingles are nasty and short-lived.They are a “black hole” environmentally and financially.They have a terrible TCO, primarily because of their short life span, <20 years. Their cheap entry price masks frequent replacement costs.Even at the high-end, shingles with a 25 or 30 year “life-time” guarantee is an illusion… they are the same shingles with an expensive insurance policy. We performed a TCO analysis of tru2earth and asphalt shingles tru2earth has a 6 year payback period which is less than the average period of homeownership.Asphalt shingles HAVE no payback period, they are NPV negative.They’re Unsafe, containing 45% petroleum…the average home has 64-96 barrels of oil on its roof. They off gas, leach toxic materials, aren’t recyclable, and have a short life span. You can’t water harvest from them.They have terrible Energy Efficiency They create heat island effect, they transfer heat INTO homes in the summer, and they accelerate the breakdown of other materials.Long-term, they are Economically Unsustainable– Oil was at historic low prices, with a global recovery, asphalt shingle prices will double. Any future any carbon taxes, landfill surcharges, or “non-recyclable” tariffs will crush the asphalt shingle market.They are facing extinction.
Initially, we target Deep Green consumers who purchase based on sustainability features and TCO. We sell directly to them leveraging specifiers or Influencers who we educate via local and event-driven marketing.BUILDLater, the mainstream market buys on Pricing, Ease of Use, and Reliability. This is an indirect market and we give up margin to grow much faster.Our Retail price is about ~$200 per roofing square, comparable to “architectural” asphalt shingles, which are 50 to 70% of the shingles in our target geography.
Board of AdvisorsOhio State University, Ohio PUC, Senior Energy Advisor - Institute for Energy and Environment. Advisor to DoD, NASA, federal, state, local agencies. CEO large Western US green building materials retailerVP, large Western building materials wholesalerFormer CA State Senator (Integrated Waste Management Board)Regional Sales Executive with a building materials background, someone who can scale a Sales org, and has had an inside and indirect sales focus a Controller who can install superior systems, processes, and procedures in preparation for a CFOa VP of Manufacturing who can lead our Logistics and Quality Control
This is one of our shapes, a shingle replacement.Notice these clips, they lock into the shingle below, providing wind uplift resistance, no other lightweight roofing material roofing material does that and in roofing weight is everything. On top of the clip is a dimple that allows roofers to drill out the clip and replace individual shingles. Roofers can use current tools and current skill sets to install. Life Cycle Tiles click together, are Walkable, Lightweight & StrongThese vertical grooves provide convection cooling across the surface of the roof…exterior to the envelope of the home…heat never gets into the home in the first place.These horizontal groovesproved dead air space which double the r insulation value of the roof. PET plastic by itself provides the same insulation value as wood shake, known as the best insulating material, We are currently priced the same as good to high-quality asphalt shingle prices. We are safe for rainwater-harvesting - Nothing leaches from PET plasticWe offer Translucent tiles that provide Day Lighting.This is “Cradle to Cradle” product. When a Life Cycle Roof comes off, it becomes another Life Cycle Roof. We qualify for LEED green building points because we are a post consumer, recycled product that is locally sourced, locally manufactured,and recyclable. We have a 71% smaller carbon footprint than asphalt shingles.
We think disrupting the asphalt shingle market is doable, and impactful. This is a huge, sitting opportunity.I’d like your help.Thank-you.
