envision solar internationalthe annual global back-up generator market was $17.6b in 2015 and is...
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ENVISIONSOLARINTERNATIONAL
EVCharging OutdoorAdvertising EnergySecurity
SolarPowered
CORPORATEPRESENTATIONQ32017
While we have taken steps to present accurate information, there may be changes in circumstances or assumptions not captured since itscomposition. Except for historical information presented in this slide show, any forward-looking statements involve risks and uncertainties.Forward-looking statements may be identified by the use of forward-looking terminology such as “may,” “can,” “will,” “could,” “should,”“project,” “expect,” “plan,” “predict,” “believe,” “estimate,” “aim,” “anticipate,” “intend,” “continue,” “potential,” “opportunity” or similarterms, variations of those terms or the negative of those terms or other variations of those terms or comparable words or expressions.These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks anduncertainties that could cause actual results to differ materially from our current expectations, estimates and assumptions and suchstatements. We caution the reader or viewer that there can be no assurance that actual results or business conditions will not differ materiallyfrom those projected or suggested in such forward-looking statements as a result of various factors, including, but not limited to, the riskfactors discussed in the filings that Envision Solar International, Inc. makes with the Securities and Exchange Commission, which you are urgedto review for more information.We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements containedherein to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any suchstatements are based. The information presented does not present all information which a reader might consider material and is not an offerto sell or solicitation of an offer to buy any securities of Envision Solar International, Inc.Any offer and any representations relating to such offer will only be contained in final executed documents relating thereto. Unless specificallyincorporated into such documents, this presentation and the information contained herein is not made a part thereof.
DISCLAIMER
EnvisionSolarisaSanDiegobasedsustainabletechnologyinnovationcompany.Envisioninvents,designs,engineersandmanufacturessolarpoweredproductswhichenablevitalservicesandamenitieswithfreeandcleanelectricityinlocationswhereitistooexpensive,environmentallyimpactfulorjustimpossibletodelivertraditionalutilitygridelectricity.
FocusingonElectricVehicleCharging,OutdoorAdvertisingandEnergySecuritytheCompany’sproducts:• Dramaticallyreducethetimeandcostsassociatedwiththeinstallationofgridtiedinfrastructure• Createmeaningfulandrecurringrevenuesthroughinnovativebuttestedbusinessmodels• Reducevulnerabilitytoexpensiveanddangerousblack-outsandothergridinterruptions
Envision’s productsareanintegrationofin-houseintellectualpropertyandfabricatedcomponentsandother’sbest-of-breedcommodityparts.Theproducts,manufacturedinour51,000squarefootfactory,convertsunlightintoelectricitywhichisstoredinon-boardbatteries.Thepowerismadeavailabledayornightandduringinclementweather.
EnvisionSolarhas3patentsissuedandfourpending.Multipletrademarks.
Foundedin2006thecompanyhasbeenpublicsinceQ12010,tradingontheOTCBBunderthesymbolEVSI.• MarketCapitalizationof$18.2M(asofAugust21st,2017)• 2016Revenues$2.8M,2017Revenues$5.5M(e)
COMPANYOVERVIEW
EVARC™
SolarTree®
LEADERSHIP
DesmondWheatleyCEO&President
• FormerCEOofENS,thelargestindependentsecurityandenergymanagementsystemsintegratorintheUnitedStateswithover$70Minannualsales.
• FoundingPartnerinCrichtonHillLLC,providingconsultinganddesignservicesforsecurityandenergyinfrastructureintheMiddleEast.
• FormerCEOofiAxis FZLLC,aDubaibasedalternativeenergyandtechnologysystemsintegrationcompany,partoftheAbuDhabibasedAlFahim Consortiumandengagedin$6Bofbuildingprojectsheadedbythatgroup.
PeterDavidsonDirector
• FormerExecutiveDirectoroftheFederalLoanProgramOfficeattheUSDepartmentofEnergy(ObamaAdministration).
• SeniorAdvisorforEnergyandEconomyforthePortAuthorityofNYandNJ• ExecutiveDirectoroftheEmpireState(NY)DevelopmentCorporation.• ChairmanoftheJMKaplanFund,aNYCbasedphilanthropicorganization,focusedonreducingNewYorkCity’scarbonfootprint.
• FormerExecutiveinMorganStanleyInvestmentBanking.
AnthonyPosawatzDirector
• CEOofInvictus iCAR,LLC,anautomotiveinnovationconsulting&advisoryfirm.• FormerPresident&CEOofFisker Automotive(August2012- August2013).• WorkedforGeneralMotorsformorethan30years,asvehiclelinedirectorfortheChevroletVoltandkeyleaderofglobalelectricvehicledevelopment,hewasresponsibleforbringingtheChevroletVoltfromconcepttoproduction(beginningin2006asafoundingmemberandemployee#1).
INDUSTRYOVERVIEW- STRATEGY
EnvisionSolar’sproductsprovidetheeasiest,mostreliableandlowesttotalcostofownershipsolutionfortheindustrieswetarget.
• Fastestdeployedandlowestlifetimecostsfortherapidlygrowingelectricvehicleinfrastructuremarket• Outdooradvertisinginlocationswhereothertypesofinstallationsarebanned• Themostreliablesourceofpowertodefendagainstblack-outsorothergridinterruptions
EVCharging OutdoorMedia EnergySecurity
EVCHARGING
TheEVchargingmarketisgrowingrapidly.EnvisionisuniquelypositionedtotakeadvantageofthegrowthinEVcharginginfrastructure.Severalfactorsfavorourapproach:• Ittakesalongtime(9-12monthsinCA)toinstallgridtiedchargers• Costsofconstructionandelectricalworkareveryhigh($100kfora50foottrenchinNYC)• CircuitsrequiredtosupportEVcharginggenerallydonotexistwherepeopleparkcars• Permittingisdifficult,complexandtimeconsuming• Utilitycosts,especiallydemandcharges,makeofferingEVchargingprohibitivelyexpensive• Powercutswillgroundfleetsofelectricvehiclesentirely
Ourproductsaredeployedin9to12minuteswithout:• Constructionorelectricalwork• Permittingorplanning• Utilitybills• andtheyareimmunetogridfailure• andourproductsarereadyforthetransitiontowireless/inductivecharging(QualcommHALO)• AsEVsbecomemoreefficientourproductsbecomemorevaluable (4miles/kWhtoday,6miles/kWhin3years)MILLIONSOFELECTRICVEHICLECHARGERSWILLBEDEPLOYEDGLOBALLYINTHECOMINGDECADEENVISIONSOLARDERIVESREVENUESFROMSELLINGAND/ORLEASINGEVCHARGINGINFRASTRUCTURE
EVCHARGING- STRATEGY
EVCHARGING– CURRENTSUCCESSESEnvisionSolar’sEVchargingsolutionsaredeployedin12Statesand4Nations.WehaveFortune500andGovernmentcustomers.Duringtheproductdevelopmentcycleoursalesandmarketingeffortshavebeenextremelylimitedyetwehaveattractedthehighestqualitycustomers.Belowareexamplecontracts.
MAJORCONTRACTWINS
NewYorkCity3yearcontractwithoneyearrenewal.Theyareintheprocessofreplacingall
cityfleetvehicleswithEVsandtheyhavenowheretochargethemandwanttoensurethattheywillstillrunduringagridoutage
StateofCaliforniamultiyearcontracttosupplyEVARC™productsforanyState,Municipalorlocalgovernmentagency.SofarCaltransisourbiggestcustomer.Theyaredeployingforfleet
EVsandforthegeneralpublic
EVCHARGING– CASESTUDYNewYorkCityhasawardedEnvisionamulti-yearcontractforthepurchaseofEVARC™products.NYCisintheprocessoftransitioningit’sentirefleetofcityownedvehiclestoEVs.Inthesummerof2015NYCpurchasedasingleEVARC™unit.AfterchargingfleetEVsfortwoyearstheCityissuedanRFPwhichspecifiedEnvision’s EVARC™productexclusively.InMarchof2017Envisionwasawardeda3yearcontractwitha1yearrenewal,againstwhichtheCitycanissuepurchaseorders.InJuneof2017theCityissuedthefirst3purchaseordersforEVARC™products,totaling36units($2.5M).
TherewereseveralcontributorstotheCity’sdecisiontopurchaseEnvision’s EVARC™:• Addingtheloadfrom2000EVstothegridisnotsustainableinNYC.EVARC™chargesEVswithoutimpactingthegrid• Civilcostsforgrid-tiedEVchargerinstallationsareveryhigh.Trenchingforwiringcostsaround$2k/linearfoot• HurricaneSandy,TheGreatNortheastBlackoutandterroristactivitieshaveconvincedtheCitythattheyneedanEVcharging
solutionthatisgridindependenttoavoidthecityfleetbeinggroundedduringablackout.• EachEVARC™canproducearound$80kworthofelectricityduringitsworkinglife– morethanpayingforitself.• EachEVARC™isequippedwithanemergencypowerpanelwhichismadeavailabletofirstrespondersduringagridfailure.
TheCityisabletoleverageitsEVARC™unitsasdisasterpreparednessassetsaswellasEVchargingassets.MuchofthefundingforthepurchaseofEVARC™productsiscomingfrom“ResiliencyFunding”.
• EVARC™offsetsthecostsofadditionalbackupgeneratorsandallthefuel,maintenanceandstoragetheyrequire
EVARC™atFlushingMeadows EVARC™at1CentreStreetTheemergencypowerpanel
OUTDOORMEDIA
EnvisionsellsEVcharginginfrastructure,notEVcharging.HoweverwearepursuingotherbusinessmodelslikeOutdoorMedia(OOH)salesforrecurringrevenues.
TraditionalOutdoorMediaplatformsfacesignificantbarrierstoentry:• Mostqualityjurisdictionshaveordinanceswhichprohibittraditionaloutdoorpanels• Traditionalinstallationsareexpensiveandtimeconsuming• Rentsandutilitybillseatawayatoperatingprofits• Advertisersarelookingforthe“newnew”andgreen,sustainablesolutions
EnvisionSolar’sEVARC™MediaisideallypositionedtotakeadisproportionateshareofthegrowthinOOHsalesbecause:• TheyareAmericanmadeandoffervaluableamenitiestotheconstituency(solarpowered,freeEVcharging)• Theyareinstalledrapidlyandlowtonocosts• Theydonotgeneratedautilitybillandinmanycasescanbedeployedrentfreebecauseoftheamenityvalue• Theyarehighlyvisibleandcreateasustainable“greenhalo”aroundtheadpanels• TheyprovideemergencypowertoCitiesduringblack-outsorotherdisasters
WEINTENDTOINSTALLNETWORKSOFEVARC™MEDIAPLATFORMSINMULTIPLEUSCITIESENVISIONDERIVESREVENUESFROMSELLINGEVARC™MEDIAANDWILLDERIVERECURRINGREVENUESFROMADSALES
OUTDOORMEDIA- STRATEGY
OOHistheonlytraditionalmediumtokeepgrowing
ChargeForwardisaPennsylvaniabasedoutdoormediacompanywhichisusingEVARC™MediaasaplatformfortheirShoppingCenterportfolio.TheirbusinessinvolvesplacingEVARC™inlocationswhichareattheingresspointstothemalls.Theseparkingspacesreceivethehighestlevelsofviewsbecauseallvisitorstothemallhavetopassthem,wherevertheyhaveparked.ChargeForwardsellsadvertisingtolocalandnationalbusinesses.AdsaredisplayedontheEVARC™Media.EVchargingisfreeasanamenityforthemall.Revenuescomefromtheadvertising.
EVARC™Mediasellsforaround$70k.Aftertaxincentivesthecostisunder$40k.Similaradvertisingscreensgenerate$1000/monthintherightlocations.GenerallythefreeEVchargingamenitycanoffsetanyrentsandtherearenoutilitycosts.EVARC™Mediahasmuchlowerinstallationandoperatingcoststhanatraditionaloutdoormediaplacement.BreakevenROIsofsub3yearsandIRRsof25%orgreaterat5yearsarewellwithinreach.
EnvisionSolarwillcontinuetosupportChargeForwardLLCaswedeployourownnetworksofadsupportedEVARC™MediaunitsacrosstheUS.
ChargeForwardstatesthatdeployinganEVARC™is“easierthanputtingIkeafurnituretogether”andbecausetheunitsaresolarpowered,requirenoconstructionandofferfreeEVcharging,permittingisnotrequiredinmanyjurisdictions.
OUTDOORMEDIA– CASESTUDY
EVARC™MediaatPennsylvaniaMall EVARC™MediaatChevyDealership EVARC™Mediaintypicalcurbsidedeployment
ENERGYSECURITY
Black-outsaremorecommonthanatanytimeinhistoryandyetwearemorereliantthaneveronelectricity. GridinterruptionscostUSbusinessesaround$200Bayearandareincreasinglybecomingastrategicvulnerability.EnvisionoffersenergysecurityenhancementsonourproductsasastandalonevaluepropositionortoincreasesalesinourEVorMediabusinessunits.
Theannualglobalback-upgeneratormarketwas$17.6Bin2015andisexpectedtoriseto$23.4Bin2020.Envision’sproductsareideallypositionedtotakeadisproportionatepieceofthisgrowthbecause:• Multi-stackingofvalue– eachproductprovidesvaluebeyondstrandedassetoftypicalgenset• Zerofuelingrequirements• Lowtonomaintenance• Nooff-sitestoragecosts• Zeroemissionsandnonoisepollutionmeansourproductscanbedeployedanywhere• Transportableandre-deployableduringemergencies• Interagencycompatibility
NEWYORKCITYANDTHESTATEOFCALIFORNIAAREBUYINGENERGYSECURITYENHANCEDEVARC™PRODUCTSENVISIONDERIVESREVENUESFROMSELLINGORLEASINGEVARC™PRODUCTS
ENERGYSECURITY- STRATEGY
California,NewYorkandothersareusingEVARC™asresiliencyanddisasterpreparednesstoolsaswellassimpleEVchargingsolutions.NowthereisagrowingrecognitionoftheEVARC™asahighlyreliableandstable,yetmobile,sourceofelectricityfordisasterssuchasfire,earthquake,tsunami,hurricane,terroristornefariousnationstateactivities.
OnJune6th 2017,TheEmergencyMedicalServicesAuthority(EMSA),CaliforniaDisasterMedicalServicesAssociation(CAL-MAT),DepartmentofVeteranAffairs(VA)andtheCaliforniaNationalGuard executedaFieldTrainingExercise(FTX)atNASAAmes,simulatinga7.3magnitudeearthquake.Powerisalwaysacriticalissueduringdisastersandthecurrentprotocolistorelyondieselgenerators.HoweverlessonslearnedduringHurricaneSandyshowedthatliquidfuelscanbehardtoaccessduringprolongedpoweroutages.Pollution,transportationandotherhazardscompoundthenegativepotentialsassociatedwithpetrochemicals.Generatorsarealsonotoriousforfailingtooperate.DuringHurricaneSandy58%ofhospitalshadgeneratorfailures.
TheuseofanEVARC™attheFTXmarkedthefirsttimeCAemergencyteamshaveusedsolartopowertheiroperations.Theyalsoexperiencedtypicalgeneratorproblemswhichputtheentireprogramatrisk.FortunatelytheEVARC™savedthedaypromptingToddFrandsen,Sr.EmergencyServicesCoordinator,tostate“yousavedourprogram”.InSeptember2017,EVARC™unitswillbethesolesourceofpowerforanotherFTX,whichwillbestagedinAlamedaCA,asaresultofthesuccessfulpilotatNASA.
ENERGYSECURITY– CASESTUDY
EmergencyCrewsdrillattheFTX EVARC™poweringaccommodation,emergencyservicesandmedicaltraumaunits AfirstresponderrestsontheEVARC™
THEPRODUCTS
THEPRODUCTS– EVARC™(patented)EnvisionSolar’sEVARC™(ElectricVehicleAutonomousRenewableCharger)istheworldsonlytransportable,solarpoweredEVchargingsolution.Itgeneratesandstoresmoreelectricitywithourpatentedtrackingsolutionwhichfollowsthesun. Itrequiresnopermitting,construction,electricalworkorsitedisruption.Itfitsinsidealegalsizedparkingspaceanddoesnotreduceparkinginanyway.Itwillnevergenerateautilitybillanditisimmunetogridinterruptions.Itisthefastestdeployed,mostscalableand lowesttotalcostofownershipsolutionavailable.
ElectricVehicleCharging(includingDCfastcharging) ElectricMotorcycleCharging ElectricBicycleCharging OutdoorMedia
PaidParking
Andit’smobile
ARCMobility™trailerfordeliveriesupto1500miles TransformerARC™goes2onatruckorcontainerforlongertrips
Energysecurity
THEPRODUCTS– SOLARTREE®(patented)EnvisionSolar’sSolarTree®usesthesamegreatstorageandtrackingtechnologyfoundinourEVARC™product.Itslargerformatallowsustogeneratemoreelectricityandchargelargervehicleswithmoreelectricityandatfasterrates.It’salsogreatfor reducingutilitybillsandprovidingemergencypowerduringblack-outs.
ElectricVehicleCharging
BusandMedium/HeavyDutyVehicleCharging EnergySecurity
MediaandBranding
PaidParking Energysecurity
THECOMPANY
Todate,EnvisionSolarhasfocusedinvestmentonproductdevelopmentandengineering.Webelievethatitistimetoredirectmuchofourfocustosalesandmarketing.BecausewehavedemonstratedthatwehaveproductswithmassappealandthatwecansellandreliablyproducethemfortoptiercustomerslikeNYC,CA,Google,Johnson&Johnsonandmanyothers,wearenowreadytoevolveoursalesandmarketingteams.
EnvisionbelievesthatthecombinedvalueofEVcharging,OutdoorMediaandEnergySecurityisanextremelycompellingvaluepropositionandwehavecertainlyobservedthatamongstourcurrentandgrowingclientlist.Wehavealsoobservedthatwhentargetedprospectsareexposedtoourproductstheirresponseisinvariablypositiveandoftenleadstosales.Withthatinmind weareincreasingoursalesandmarketingresources:
• WehavehiredanexNavySealIntelofficertogrowandleadasalesteam• Weareintheprocessofhiringandtrainingasalesforcefordirectsales• Wehavehiredamarketingprofessionalforthefirsttimeinourhistory• Weintendtoinvestinimprovedinternetandsocialmediamarketing• Weintendtoincreaseourattendanceoftradeshowsandguerillamarketing
Significantneed– lackofEVcharginginfrastructureisthegreatestimpedimenttoEVadoptionglobally.Governmentsandenterprisesknowthisandarebudgetingtochangethat.
Firsttomarketadvantage– ourexperiencesthroughthebiddingprocesswithCaliforniaandNewYorkhavedemonstratedthatthereisnootherproductonthemarketwhichcancompetewithours.• Arapidlydeployed,transportableEVchargingsolutionthathaslittleornoopex.andprovidescleanelectricitytoEVs• Businessmodelswhichdonotrelyonthesaleofsmallamountsofelectricitythroughexpensiveinfrastructure
EVENWITHVERYLITTLEINVESTMENTINSALESANDMARKETINGWEHAVEBEENABLETOGENERATEMILLIONSINSALESWEBELIEVETHATWITHINCREASEDEMPHASISANDINVESTMENTINSALESANDMARKETINGWECANINCREASEVOLUMESSIGNIFICANTLY
SALESANDMARKETING
EVSIsalesteam EVSImarketingteam
EnvisionSolarmanufacturesitsproductsina51,000sq/ft facilityinSanDiego,California.Todatewehaveproducedproductatarateofoneunitevery1.5daysbutwehavethecapacitytoincreaseto5unitsperdaywithsomemodestinvestmentandwithoutarationalincreaseinhead-count.OurfacilityislocatedclosetoInterstate805and5,northofSanDiego.Weareexcellentlypositionedfromalogisticspointofview.
EnvisionSolarissuccessfullyreducingCOGs(costsofgoodsold)andimprovingefficiencieswhileimprovingthequalityandperformanceofourproducts.
• Wehavereducedbyover50%thecosttoproduceanEVARC™• WehaveincreasedthepowerandperformanceofanEVARC™by100%• WehavereducedtheweightofanEVARC™byover1,000pounds• WehavedecreasedthetimerequiredtoproduceanEVARC™fromweekstohours• ThevitalcomponentsofEVARC™unitsaregettinglessexpensiveandhigherperformingdaily– solarmodules,batteriesetc.• Withincreasedefficiencieswearereducingerrorsandincreasingtheunits/manpowerratio
OURPRODUCTSAREMADEINAMERICABYCOMBATVETERANS,DISABLEDWORKERSANDOTHERFINETEAMMEMBERS
OPERATIONS
EVSIheadquarters EVARC™finalassemblyarea Electromechanical SteelFabrication
OPERATIONS– USEFULTRENDS
Ourmajorcosts…Solar Batteries
Ourmajoropportunities…EVCharging OutdoorMedia Energysecurity
CUSTOMERSAMPLING
EnvisionSolarhassoldtothefinestcustomersintheUnitedStates.Ourproductofferingissocompellingthatwehavebeenabletocapturemillionsofdollarsofsaleswithsomeofthetoughestandbestbrandsinhistory.Webelievethatwithourincreasedemphasisonsalesandmarketingwewillbeabletoleverageandexpandtheseandmanyotherfinerelationships.
RECENTNEWS- SAMPLING
November 2016 Fresno CountyRuralTransitAuthorityorders13EVARC™unitsasfirstforEVsandTransitShuttlesinCentralValley
December2016 Chicago Courthousesorder12SolarTree®products
January 2017 ChevroletusesEVARC™ MediaforlaunchofBolt
February2017 Dept.ofEnergy,LosAngelesandIndio allselectEVARC™fordeployments
March 2017 Caltrans,UCSystemandMarinCountyselectEVARC™ fordeployment.FirstFloridaSolarTree®deployment
April2017 Envisionreports recordrevenuesandnumberofproductsdeliveredin2016
May2017 New YorkCityawardsmultiyearcontracttoEnvisionSolar,EVARC™featuredatNYCFleetshow.Californiarenewsmultiyearcontract
June2017 NYCissuesbiggestPOincompany’shistory.Cities ofMaywoodandSantaMonicaselectEVARC™fordeployments.EVARC™powersdisasterpreparednessexerciseinCA
July2017 MajorJapanese AutocompanyselectsEVARC2fordeployment
August2017 First advertisingfundedEVARC™deployed.CityofOaklandCAselectsEVARC™fordeployment
EnvisionSolarcontinuestoannouncegoodnews.Recordrevenues,recordbacklog,recordpipeline.Moreandmorecustomersareorderingourproductsandweareexecutingonthedeliveries.Wearealsoreceivingrepeatordersandcontinuallydemonstratingincreasedvaluestackingandcapabilitieswiththeproducts.
FINANCIALS
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$1,000
$2,000
$3,000
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$5,000
$6,000
2013 2014 2015 2016 2017
DollarsinTho
usands
Year
EVSIRevenues
e*
*2017forecastreliesonourraisingworkingcapital
2017revenueandbacklog$4MasofJune30th
tosell
CAPITALIZATIONANDOWNERSHIPTABLE
HolderType NumberofShares %ofCSO
Insiders 41,204,188 32%
PublicFloat 32,072,145 25%
Security NumberofSharesCommonStock 127,241,113
Convertible Debt(weightedaveragestrikeprice$0.29) 1,924,252
Options(weightedaveragestrikeprice$0.29) 18,917,007
Warrants(weightedaveragestrikeprice$0.18) 14,973,416FullyDiluted Shares 163,055,688
CapitalizationTable
OwnershipTable
INVESTMENTHIGHLIGHTS
Compelling ValueProposition
Combination ofsolarpoweredEVCharging,EmergencyPowerandlucrativeOutdoorMedia
MajorBlueChipCustomers
NewYorkCity,California,Google,GM,Kohl’s,DOD, DOE,
MultipleRevenueStreams
Sales andleasingofproducts/Recurringrevenuesfromadsalesandenergysecurity
In3GrowthIndustries
BillionsbeingspentbothintheUSandGloballyonallthree marketsEnvisiontargets
IncreasingRevenues
4yearsofincreasingrevenues andontrackfor5th year
HighlyScalable Roomfor20Xgrowth incurrentfacilityandabilitytocookiecutterotherfacilitiesforgeographicexpansion
Under Valued When comparedtoprivateorpubliccompaniesoperatinginthesamemarkets