aerospace mba 2018 - eoi

Aerospace MBA 2018

THE TEAM

Executive Summary

“Founders & Management Team”

WindSail Solutions Pte. Ltd.

TABLE OF CONTENT

1. The team

2. Business opportunity

3. Industry challenges

4. Technology solution

5. Turnkey project

6. Marketing plan

7. Commercial offer

8. Operational issues

9. Legal framework

10.Company structure

11.Financial plan

THE TEAM

Executive Summary Page


3

“Founders & Management Team”

Mª Lucía Contreras de la Torre

Industrial Mechanical Engineer

Vincenzo Vassallo

Management Engineer

José Gonzalez León

Analyst Engineer

Ismael Jiménez Pérez

Design Engineer

Gonzalo Jiménez

Tutor



4

With more than the 80% of global trade by volume and over 70 per cent of its

value carried on board ships and handled by seaports worldwide, the maritime

transport has a central importance for trade and development.

The industry, expected to grow up to 3,5% next years, is now facing new

challenges related to its sustainability, offering new business opportunities.

OPPORTUNITY

MISSION

Our mission is to offer an innovative,efficient and sustainable solution tomaritime transport problems, giving toshipping companies a completecustomizable service to reduce fuel andemission costs.

5Executive Summary Page


Our vision is create a new way of thinkingthe maritime transport, using a 100%green energy technology. Be thereference for customers of the cleanest,safest and efficient personalized serviceassistance in seaborne freight.

VISION

COMPANY VALUES

In WindSail we believe inthe power of union.Team work is a basicfactor for success andcooperation is the key toovercome limits there willbe to faced with.

Team Work

Company is outstretchedtowards future, alwaysseeking to improvementand development.People, technology,service, all the factors areconstantly aimed togrowth and progress.

Continuous improvement

WindSail is involved inmaking the maritime tradea greener business,spreading the awarenessof using environment in asustainable way, in order topreserve them for actualand future generations.

Sustainability

Geo-Political Risk

Fuel costs represent asmuch as 50-60% of totalship operating costs,depending on the type ofship and service

EEDI Regulation

Maritime transportemits around 3% ofCO2 each year to theplanet.

20% CO2 by 2020

MANDATORY

EMISSIONS REDUCTION

Fuel Cost Dependence

INDUSTRY CHALLENGES

In order to control theseemissions, the IMO hasdeveloped a package ofMANDATOR MEASURES toimprove the energyefficiency of ships with thefollowing clauses:

Some of the crude oilproducing countries, belongingto OPEC, are politically andeconomically unstable, such asNigeria or Venezuela, thisproduces large fluctuations inthe price of oil.



6

Maritime transport hasbeen using the sametechniques for transportfor more than 100 years,fossil fuel.

This is inefficient andunsustainable.

REAL-TIME MEASURABLE SAVINGS

Powerful Propulsion

Automated

Comfort

Eco-friendly

Range Extension

Reduced Fuel

Increased Safety

High visibility

TECHNLOGY SOLUTION

✓ Launch System

✓ Kite

✓ Safe and Reliable

✓ Full Autonomy

✓ Easy to retrofit

20%

Co2 TAX SAVINGS

20%

Fuel SAVINGS

co2

Simple on/off button

Decision aid

100% autonomous

Easy to implement



7

MRO Update & Follow-Up

InstallationData Analysis1 2

3 4

TURNKEY PROJECT



8

10.5

25.000

20.000

320

billiontonsofgoods

billion$annualcosts

billion$turnover

globalcargoships

WindSail target market is focused oncontainer shipping companies in PacificAsia, in order to maximize company’ssuccess possibilities, according to somedecisive criteria:

✓ Logistics Conditions. In the selected area,indeed, there are 7 of 10 main containersports hub.

✓ Trade Volume Traffic. It refers to maritimeroutes traffic, tonnage loaded andunloaded and ports throughput.

✓ Economic and Politics Factors. Includingeconomic growth, commercialagreements and governmentalinvestments.

2%

4%

14%

16%

64%

OCEANIA

AFRICA

AMERICA

EUROPA

ASIA

WORLDCONTAINERPORTVOLUMESBYREGION

MARKETING PLAN

MARKET ASSESMENT

Shipping Industry is the core part of global

trade supply chain. Cargo ships, the mostaffordable freight system, are responsiblefor moving more than 10 billion tons ofgoods worldwide, using a fleet of over25.000 vessels.

This volume is expected to be growingthrough the coming years, allowingWindSail future expansion and increasingbusiness scalability.



9

TARGET MARKET

CUSTOMERS

In the industry no similar companies arefound offering the same service, so thatalternative propulsion systems havebeen examined and benchmarked.

Main competitor technology solutionsare:

✓ Diesel

✓ Gas

✓ Hybrid

✓ Solar energy

Principal limitations of them regardinvestments, efficiency, reliability.

Routesintensity

Fleetcapacity

CMACGMCOSC

MSC

APMMAERSK

HapagLloyd

Initial

investment

Impacton

vesselstructure

Impacton

contaminationreduction

Fuel

consumptionsaving

Efficiency

ReliabilityWIND

DIESEL

SOLAR

GAS

HYBRID

Most efficient and sustainable completesolution, able to be adapted on existingand new ships.

✓ VERSATILE

✓ CLEAN

✓ INNOVATIVE

COMPETITORS



10

ROUTES SELECTION

Being Pacific Asia our area of interest, withSingapore as hub, have been selected 12main routes departing from or passingthrough Singapore’s port and directed to

America.

Inside the containers ships companies, amarket segmentation and priorizationhave been carried out according to twofactors:

✓ Route Intensity, meaning the frequencywhich the boats stir with inside of theestablished itinerary

✓ Fleet Capacity, considering the numberof ships moving inside those routes

The results show the main players whichfocus on to optimize our profits.

COMPETITIVE ADVANTAGE

Detailed market analysisbrought us to an estimationsof an average market of 13vessels per route, reaching acompound value of 156possible customers.

The 3-year WindSail Solutions contract willinclude:

✓ Installation

✓ Staff training

✓ First maintenance

✓ Follow up and customer assistance

✓ Continuous improvement

700.000 €

✓ Branding promotion

✓ Fairs/events participation

✓ Sponsorship and partnership

✓ Customized service

✓ Continuous improvement

KNOWLEDGE

CONSIDERATION

BUY

LOYALTY

100% 25%35%55%70%

MA

RK

ET

CU

STO

MER

MARKET SIZE



11

CUSTOMER BUYING PROCESS

PRICING POLICY

In the process of customer acquisition, differentbarriers have identified for WindSail to beovercome.

Due to these, in each phase a percentage ofpotential customer is missing, so that a series ofmitigation actions have to be implemented:

Due to the lack of direct competition and tothe difficulties to define a price based oncustomer’s willing to pay, our pricing strategyis set considering the benefits offered tocustomer and fixing a mark up of 20%.



12

COMMERCIAL OFFER“What is WindSail?”

2 years of RO, without immobilization of ship.

Saving up to 1-2 m$/year

Adaptable to all ships on service and with all

types of engines

20% Fuel/Gas savings, More than any solution

We think an initial huge investment inmarketing is crucial for the companysuccess, even more if it is a newconcept as WindSail Solutions is.We bet for a multichannel distributionwhere corporate salesmen play aprincipal role.

✓ Corporate salesmen

✓ Event stands-fairs

✓ Direct sales

✓ Environmental Organizations & Distribution Systems

✓ Web & Social Networks

WindSail Solutions will be really focus on serviceconsistency in continuous improvement:reducing cost & environmental friendlytechnology, since companies demandthe highest quality in every moment.

COMMERCIAL PLAN

2 SALESMENCorporate sales are the keychannel of promotion and sales

5 FAIRS STANDSWindSail Solutions will take off inSingapore

4 FREE ANALYSISWindSails Solutions offer until 3 years

of tracking including KPI’s andsoftware information in real time

20 PORT’S FACILITIESPossibility to install our solution in 20of main ports among East Asia andWest America coast

“Be the most innovative & efficient service mean between the main ships companies with all the new technologies and at competitive price as well”

MAIN CHANNELS



13

Technology

52%

Installation

8%

Training

1%

Tracking

(follow-up)

18%

Maintenanc

e

5%

Commercial

16%

OPERATIONAL COST DISTRIBUTIONAs an intial overview, Windsail S. Is takingoff with just ships connection betweenAsia an Ameria and with a demandabout 4 full services in the second year.Thus, the operational variables havebeen adjusted to optimized the costs.

MAKE & BUY Policies

As operational strategic approach, inWindsail S. We have to decided toexternalized all that is not consideredcore business. Those activities are:Installation & Maintenance. Despitethis, it is included in the Companystrategy to recover some of thoseactivities when we will grow.

Contingencies Plan

It is really key for success a good riskmanagement in the operational field inorder to be able to cover the offeredservice. As Windsail S. has an ecologicaldemand, a failure in the technology orthe analysis will be even worse than inconventional services.

Technology breakdown or otherunavailability: It will be provided thefastest maintenance team from the nextport ship destination

More PO’s than supplier capacity: Starta supplier development plan since thecontract sign

OPERATIONAL ISSUES



14

Installation

Just in 5 days in every port

TrainingSpecialised practical courses of

2 days

Tracking

Windsail solutions offer until 3 yearsof tracking including KPI’s andsoftware information in real time

MRO

1 year of free maintenance

included

AutologgerEnvironmental

Performance

Key

performance

Indicators

Charter party

Compliance

Benchmark

& Analysis

It shows the main milestones that will bedeployed throughout those five years ofoperation. Beginning with the surveyfound at the beginning and the ramp upof the operation itself.

In the next year the steps of the MSCcompany are shown, which in the first twoyears will be our main objectivity.However, it will be essential from the 3rdyear, to increase the capacity through theacquisition of new clients.

According to that, it becomes clearwhen it is extended to do again andwhat type those are. It has begun andincreased in the maintenance andanalysis for the third year, and anexpansion of strategic routes.

IMPLEMENTATION SCHEDULE



15

LEGAL FRAMEWORK



16

Business Regulations

WindSail Solutions as establish business inSingapore has to accomplish with:

✓ Incorporation Law: definition of theentity and fulfilment regulatorycompliance requirements. The businesslicense and the certificate ofincorporations is ensured.

✓ Taxation Law: the payments of taxesare fulfilled for business income, goodand services and foreign workersregulations.

✓ Immigration Law: high flexibly, withsmall restrictions in salary and holidays.

Governmental Funding

• SEEDS Capital supports the growth of

promising Singapore-based startups. They

co-invest with independent investors in

innovative startups with strong intellectual

content and global market potential.

• Green Initiative comprising five

programmes seeking to reduce the

environmental of shipping-related activities

and to promote clean and green shipping

in Singapore.

International & EU Agreements

✓ MARPOL: Main convention that covered

prevention of pollution of the marine

environment.

✓ HAMBURG RULES: Regulates the

responsibilities of a marine transport

agreement, and besides it has been ratified

by Singapore.

✓ ROME I: Regulate what law applies in case

of conflict when be European member’s

business and no members of EU.

✓ ROME II: it regulates which legislation will be

applied in case of patent, unfair trade or

defective product.

Contracts & Responsibilities

• Supplier: Supply contract with 2 main

clauses of exclusivity. Supplier cannot

commercialise his product without us and

we must distribute, commercialise and

install only his product.

• Transport: It bases on BIMCO

recommendations reliable for both parties.

• Outsourcing Builder: It bases on BIMCO

templates and regulates responsibilities and

limits of every part following the regulations

of the port’s country.

CEO

CFO COO

Procurement Engineering

CMO

Commercials

Legal HHRR

The company is organized taking intoaccount the hierarchical and functionalway of work.

In that direction WindSail staff is organizedin three different departments: Marketing& Commercial, Operations and Finances.

These functions are managed by CEO. Onthe other hand, Legal and HHRR will beexternal.

2020 2021 2022 2023 2024

Managment Financial Staff IT Commercial & MKT Staff Operation Staff Crew

The main features, to join WindSail, are thebackground and the expertise in eachrelated field as well as passion and theconcern about environmental issues andhow to deal with them.

17Executive Summary Page


COMPANY STRUCTURE

Staff Attributes

How much?

2020 2021 2022 2023 2024

Revenues 700.000 2.842.000 4.900.000 7.000.000 8.400.000

COGS 585.000 2.010.715 3.406.794 4.813.744 5.815.768

Gross Margin 115.000 831.285 1.493.205 2.186.255 2.584.231

Fixed Costs 513.000 515.000 798.200 801.000 806.500

EBITDA (398.000) 316.285 695.005 1.385.255 1.777.731

Depreciation 4.710 9.520 29.623 59.625 89.639

EBIT (402.710) 306.765 665.381 1.325.630 1.688.091

48.000€

10%

168.000 €

35%240.000 €50%

24.000 €

5%

Project Team Venture Capital

Government Business Angels

FINANCIAL PLAN

The initial investment in order to set upthe company will be 48.000 €, after that,during the first quarter we will required432.000 k€ more to develop our businessand leverage our project.

Financial Sources



18

Who?

Our objective is to keep in house a 51%of Wind Sail S. shares.

There will be used different financialsources:

FINANCIAL FORECAST

Income StatementThe forecasted result in terms of sales and cost for Wind Sail Solutions are summarized inthe following chart.

-60,0%

-40,0%

-20,0%

0,0%

20,0%

2019 2021 2023 2025

Profit margin93,0%

-300,0%

-200,0%

-100,0%

0,0%

100,0%

200,0%

2019 2021 2023 2025

ROE

0,70

2,84

4,90

7,00

8,40

(0,33)0,25 0,55

1,10 1,40

(2,00)

2,00

4,00

6,00

8,00

10,00

2020 2021 2022 2023 2024

Mill

on

es

Revenues Earnings

(1,00)

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

2020 2021 2022 2023 2024

Mill

on

es

Taxes

Interests

Depreciation

Fixed Costs

COGS

EBITDA Multiplier 5th year →6,9

Terminal Value →12 M€

TIR → 53%



19

Cost Distribution

It is appreciated, themain costs are comingfrom variable costs.

As an start-up, thecompany goal isfocused on reducingthe maximum budgetuntil the company ismature enough

Net Income - Revenues Financial Assessment

Revenues are consistently growingand net income is positive fromthe second year on.

Contact us

[email protected]

+65 6287 67610

https://windsailsolutions.wixsite.com/website

aerospace mba 2018 - eoi

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