optimizing commercial building power for optimal results
TRANSCRIPT
legendpower.com
Optimizing Commercial Building Power For Optimal Results
March 2021
Forward Looking Statements
This Presentation may contain statements which constitute “forward-looking information”, including statementsregarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers withrespect to the future business activities and operating performance of the Company. The words “may”, “would”,“could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate tothe Company, or its management, are intended to identify such forward-looking statements. Investors arecautioned that any such forward-looking statements are not guarantees of future business activities orperformance and involve risks and uncertainties, and that the Company’s future business activities may differmaterially from those in the forward-looking statements as a result of various factors. Such risks, uncertaintiesand factors are described in the periodic filings with the Canadian securities regulatory authorities, including theCompany’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDARat www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptionsunderlying the forward-looking statements prove incorrect, actual results may vary materially from thosedescribed herein as intended, planned, anticipated, believed, estimated or expected. Although the Company hasattempted to identify important risks, uncertainties and factors which could cause actual results to differmaterially, there may be others that cause results not be as anticipated, estimated or intended. The Companydoes not intend, and does not assume any obligation, to update these forward-looking statements other than asmay be required by applicable law.
LPS-TSXVwww.LegendPower.com 2
Capital Structure: LPS-TSXV (as of February 5, 2021)
Shares outstanding 102.0m
Options 7.3m
Warrants nil
Fully diluted 109.3m
Insider ownership 16%
Share price $0.60
Market cap. $61.2m
Fully diluted market cap. $65.6m
Cash $2.3m
Enterprise value $63.3m
www.LegendPower.com 3LPS-TSXV
A Tale of 2 Legends…. Major Inflection Point
Pro
du
ct Harmonizer AVR
Solves
• Overvoltage
Val
ue
Pro
p Energy Savings
Ambiguous Maintenance Savings
Targ
et P
erso
nas Energy Manager
Sustainability
Maintenance
Mar
ket
Rea
din
ess Skeptical
“Prove it”
Res
ult
s One at time
2-3 years for 2-4 Systems
One Vertical
One Geo
4
Solu
tio
n Hardware
• SmartGATE
• Insights
Services
• Assessments
• Data Services
Solves• Full Power Regulation
• 6 Power Quality Attributes
Val
ue
Pro
p Lifetime & Reliability
Ops Costs Reduction
Revenue Protection
Cap Asset Optimization
Energy Savings
ESG Leadership
Tax Benefits
Targ
et P
erso
nas Exec Leadership
Portfolio Leadership
Energy Leaders
Sustainability
ESG Executives
Facilities Leadership Mar
ket
Rea
din
ess Broader Awareness
Electrification & Decarbonization
ESG Drivers
Government Mandates / Incentives
Res
ult
s Portfolio Approach
3 Sales Channels
6-12 month Sales Cycle
7 Verticals
8+ Geo’s
Dozens at a time
Then…
And Now…
Optimal Power. Optimal Performance.
We analyze where & how electricity harms your business performance,
and then we optimize your POWER to optimize your business RESULTS
Legend Power®
Services
Power Impact Reports
Power Quality Scorecards
Business Impact Report
Project Management
PQ Monitoring / Reporting
M&V Reporting
Maintenance Services
Platform Hardware
SmartGATE Insights
SmartGATE Platform (74 System Sizes / Options)
Solutions
6
Business Impact of Power – Converting Tech Talk to Business Language
Beyond Simple Payback toCore Strategic Objectives
Efficiency Lifetime Reliability
Systems Impacted
Elevators Air Filtration HVAC Life/Safety Systems Occupancy Sensors Lights Computer Controllers Pumps
Decreased life expectancy
greater than 20%
Decreased life expectancy of
10-20%
Minimal decreased life
expectancy
Energy Waste of
4.7% or more
Increased Operating Temps
>10% increase
Energy Waste of
3.5 - 4.7%
Increased Operating Temps
10%
Minimal Energy Waste
Minimal Operating Impact
Critical
Caution
Good
More Than 50 Energy
Variation Events per Year
Between
25 - 50 Variation Events per Year
Less than
24Variation Events per Year
$0.30 $0.45
$0.50$0.20
10%5%0%
SCOPE
Model
CAUTION RANGE
2021 Target 90 Insights / Quarter
Average Conversion10 Insight = 5
Systems
Average Deal Size$110,000
ARR Options$1,000 to $4,500 /
System
Led Sales Cycle
Building data combined with research & experience in building power to show impact in 3 areas
Reliability, Lifetime, & Efficiency.
Power Impact Service
2 - Verify
1 -Analyze
We start with collecting specific building power
conditions and analyze the impact on the business.
We actively optimize power challenges continuously to
improve business performance and provide data to manage
business optimally.3 - Solve
North America Go-To-Market
Active Geo’sExpansion Geo’s
Direct Sold
CRE - Multifamily
CRE - Office
CRE - Industrial
CRE - Hospitality
Resellers
Regional Contractors
National Contractors
ESCO’sUS $10-15b Annual Market
National ESCO
Regtional ESCOs
Distributors
Affiliates
Regional Eng Firms
National Eng Firms
www.LegendPower.com
Industrial
Education
Government
Grid Instability
Decarbonization / Electrification Movement Impact
Fossil Fuels Solar Wind Low Inertia / Distributed Energy Resources
$80b / Year Current Problem Increases Faster Every Year
Op Cost | Eq Failures | Occupant Risk
GHG Emissions
$60-$90 TRILLION BEING SPENT NEXT 2-3 DECADES*
*Mark Carney, Head of ESG and Impact Investing – Brookfield Investments - Why Brookfield is betting billions on the race to cut carbon
Protection From The Impacts of Decarbonization & Energy Savings
Impact due to InstabilityGreater Stability with
Active Power Management at the Grid Edge(Independent 3rd Party Whitepaper)
Legend Power is the Leader in 4 of 5 Categories
“ (other measures) should be preceded by deploying APM ...is central to large building electrification strategies given
its vast potential for reducing emissions and power cost and stabilizing the grid.”
“As building owners and property managers begin
prioritizing decarbonization and electrification
…APM will continue gaining a presence in large
commercial and residential buildings
…APM is the keystone of large building electrification
…expect APM devices to become as commonplace
in large buildings as utility power meters.”
https://www.emergentgroup.com/publications
SmartGATE PlatformActive Power Management
Power Management for Broader Value
Legend Power Product Roadmap – Innovation is our DNA
Occupant Safety Financial Results GHG Reduction ESG Leadership
Legend Power Delivers What Building Owners Need
TE
CH
VA
LU
E
Market Adoption
Sales
Bypass Mode
Resiliency
SmartGATE w InsightsActive Power Management
Data Driven Power Management
Insights StandaloneData Driven Discovery
Visibility To Value
SmartGATE Next Gen
Full Power Regulation
Harmonizer AVRVoltage Reduction
Energy Savings through CVR
Insights Remote Nodes
Visibility
EV Charging Link
Renewable Grid Tie
EV and Battery Integration
SmartGATE Virtual Power Plant
FERC 2222 Expansion
2022 2023 2024+
SmartGATE Data Store
Market Extension
2010 2015 2018 2019 2020
Data Assets Under Management
Data Store Potential
Current Data Revenue
2021 2022 2023 2024 2025 2026 2027
Building
Consumption
Data
Building Power
Quality Data
Building
Demographic
Data
Local
Consumption
Data
Local Power
Quality Data
Local
Demographic
Data
Grid
Consumption
Data
Grid Impact
Data
Legend Sales Support✓ Power Impact Reports
✓ Portfolio Impact View
✓ Drive SmartGATE Sales
Future Potential Data Revenue
BENCHMARKING✓ Building Benchmarking
✓ Local Grid Benchmarking
✓ Regional Grid Benchmarking
ECO SYSTEM SUPPORT✓ Demographics Reports / Data Store
✓ Consumption Reports / Data Store
✓ Power Quality Reports / Data Store
CHANNEL SUPPORT✓ Sales Opportunity Identification
✓ System Design Data
✓ Drive SmartGATE Sales and Additional Sales
Key Performance Highlights
300+ systems deployed
75% repeat purchases
125+ customers
10+ marquis customers
3 sales channels
Canada and US success
Avg revenue per sale - $110,000
Avg margin – 50%+
14
Significant NA momentum (multi-year investment)
✓ 02-10-21 Major ESCO Engages Legend Power to Assess10 City of Boston Buildings
✓ 02-02-21 Legend Installs First of Two SmartGATE™ Platforms into NY School through Fortune 100 Energy Services Company
✓ 01-28-21 Legend Power Presents at Major Facility Operators Annual Continuing Education Event
✓ 1-19-21 Legend Power Receives $1.26 Million Order from North American Property Manager for 17 SmartGATE™ Platforms
✓ 1-15-21 Legend Power Announces Commencement of Trading on the OTCQB Under Symbol LPSIF
✓ 1-13-21 Legend Channel Partner Places Orders for 29 SmartGATE Insights™Service Engagements
15
2021 Press Release
Why Invest in Legend Power Systems
✓Massive Climate Change Movement = Right Time
✓Core to Commercial Building ESG enhancement strategies
✓Decarbonization INCREASES the need for us
✓No direct competitors
✓Technology proven in over 300 deployments
✓Optimizes building safety technologies
✓Reseller channel established
✓3+ Years of Brand, Market and Geographic Development
✓Low capex growth profile
©2021 Legend Power® Systems Inc. Private & confidential. 17
Case Studies
WHO:Large CRE owner and operator is a leading privately owned North American real estate investment and asset manager, with 25 years of experience.
Focus on investment and active asset management of multi-family and commercial real estate, as well as financial services asset management.
Currently managing over $20B of assets, 600+ Properties, and 60,000 units
The Problem
Client purchases
underperforming properties
and invests to turn them
into high performing assets.
Focusing on energy savings
and cost reductions while
improving tenant experience
is paramount to asset value
and drive ESG favorable
capital.
The Solution
By installing SmartGATE™systems in they :
• Decrease Energy Consumption
• Decrease GHG impact
• Decrease Op Costs
• Stabilized Building Systems
• Increase Revenue
• Favorable Tax Treatment
• Valuation Increases
4.12M kWh$500k+ Op Costs
0
20
40
60
80
100
2017 2018 2019 2020 2021(p)
Total Systems Cum kWh Savings
Total Systems 39Sites 30+Relationship 4 yrskWh Saved 4.12m
$500,000 + Saved To Date
The Results
Case StudyCanadian Portfolio
Legend Power Systems SmartGATE™ is one of the go-to energy measures to drive savings, valuations, ESG leadership and other key business drivers
Large CREOwner / Operator
WHO:
Toronto Catholic District School Board (“TCDSB”) takes a leadership approach when it comes to environmental excellence. One of the major initiatives that the TCDSB has utilized has been roof top solar.
The ProblemPower grid conditions, primarily high and volatile voltage levels, were preventing TCDSB’s solar array from supplying power back to the grid, significantly diminishing the solar systems environmental and financial impact.
The SolutionLegend’s SmartGATE platform was deployed to eliminate voltage and power related challenges to ensure that the TCDSBs investment in solar was protected and fully enabled. Before SmartGATE
Grid Voltage 628V to 636V
Solar Status Intermittent
Solar Revenue Loss at
Risk $40,000/year
Solar kWh Power
Generation at Risk 200,000 kWh/year
Grid Voltage 570V to 580V
Solar Status System OK – Grid
Connected
Solar Revenue Increase
(loss prevention) $40,000/year
Solar kWh Power
Generation 200,000 kWh/year
After SmartGATE
Grid Voltage 628V to 636V
Solar Status Intermittent
Solar Revenue Loss at
Risk $40,000/year
Solar kWh Power
Generation at Risk 200,000 kWh/year
Grid Voltage 570V to 580V
Solar Status System OK – Grid
Connected
Solar Revenue Increase
(loss prevention) $40,000/year
Solar kWh Power
Generation 200,000 kWh/year
After SmartGATE
15 SmartGATE Deployed900k kWh Saved Annually
3.75% Energy Savings
Optimal Voltage for Solar Tie-In
WHO:Haven Consultants International is a leading engineering consultancy firm with an established presence in North America, focusing on the East Coast Market.
Haven offer’s their experience in the energy efficiency market focusing on large C&I building owners and operators including Hotels, K-12 Colleges, Office & Multifamily REIT and Government instaurations.
The Problem
Haven Consultants helps
their clients use less energy,
reducing their carbon
footprint, energy spend and
while supporting their
resiliency strategies.
Finding a proven
differentiator that leads to
sustained revenue growth
is always a challenge for
consulting firms.
The Solution
By working with Legend to deployed the SmartGATE™ & Legend Insight
• Incremental Revenue Generation
• Rapid (and on-going) Client Engagement
• Point of Differentiation with Limited to No Competition
• Contributing to the Regions Carbon Reduction Strategy
20+ SmartGATE Deployed80+ Clients Engaged / InsightsFunnel & Revenue Growth
Case StudyDistribution Partner
Legend Power Systems SmartGATE™ is one of the go-to energy measures to drive savings, valuations, ESG leadership and other key business drivers
Regional SmartGATE Deployment
Customer Validation, +300 SmartGATE™ Installations
Multiple orders for the New York
City building complex of a global
Fortune 100 technology
company
Legend Power® Systems Installs 300th SmartGATE™
Vancouver, B.C., Canada – June 25, 2020 – Legend Power® Systems (TSX-V: LPS), announced today that it reached a milestone with the installation of the three hundredth SmartGATE™ platform. Since its launch, the Company has been a leading innovator in the provision of intelligent, electrical power management platforms that optimize both operational and financial performance in commercial buildings.Highlights of the collective benefits that 300 SmartGATE’s have delivered to customers, and the environment include:
Total Systems Installed ─ 304Total Energy Saved (kWh) ─ 110,736,000Total Savings ($’s) ─ $17,717,800Total GHG Reduction (tonnes) ─ 94,790Trouble-free Hours of Operation ─ 2,044,000
www.LegendPower.com 21
FinancialsFinancial Highlights for the quarter ending September 30, 2020 (Q4 2020)
• Revenue of $347k versus $486k reported in Q4 2019;
• Gross profit of $66k compared to $(97k) in Q4 2019;
• Adjusted EBITDA loss of $569k versus a $1.80 million loss in Q4 2019;
• Net loss of $769k versus the $2.42 million loss in Q4 2019; and
• Cash of $2.29 million, no debt, and $3.76 million in working capital at September 30, 2020.
www.LegendPower.com 22
Board of Directors
Randy Buchamer – President, CEO, Director
Randy was Managing Director, Operationsfor The Jim Pattison Group and heldexecutive roles with Mohawk Oil Companyand directorships of several technology andresource firms. Under his leadership,Mohawk Oil was restructured, underwent asuccessful corporate turnaround and waslisted on the Toronto Stock Exchange. Randyhas led or provided mentorship in thetransformation of several under-performingprivate and public firms over the years.
Steve Vanry, CFA, CIM – CFO & COO
Mr. Vanry has 22-years professionalexperience in senior managementpositions with public and privatecompanies, providing expertise incapital markets, strategic planning,corporate finance, mergers andacquisitions, regulatory compliance,accounting and financial reporting.
Michael AtkinsonPresident & CEO Earlston
Investments Corp.
Cos LaPorta(Chairman)
PrincipalLaPorta Ventures
Dave GuebertChief Financial Officer
Marrett Resource Corp.
Jonathan LanskyIndependent Investor
www.LegendPower.com 23
Optimal Power. Optimal Performance.
Legend Power®
24
Randy Buchamer
President and CEO
778-945-1501
Steve Vanry, CFA
Chief Financial Officer
604-671-9522
Sean Peasgood
Investors Relations
Sophic Capital
647-503-1054
©2021 Legend Power® Systems Inc. Private & confidential. 25
www.legendpower.com
Appendix
LPS Addresses ~$80B Annual Problem
26
US$35BINCREASED REPAIR & MAINTENANCE COSTS
US$38B WASTED ENERGY COST
EPRI Power Quality Study 2016, US Department of Energy – CVO Report 2017
Inconsistent Grid
Power
Risk & Financial
Waste in Systems
Higher GHG,
Operating Costs
Lower CSAT,
Revenue & ESG
Lower Profits, NOI,
NAV
How We Help - The Legend Power® Solution
Database• Visibility to building / financial impact
• Information to make better building decisions
• IOT electricity data for ESG leadership
Optimal Power. Optimal Performance.
• Intelligent Active Power Management
• Increased energy efficiency
• Increased uptime & lifetime of equipment
• Lower GHG emissions
• Lower operating and maintenance Costs
• Enhanced profitability and valuations
Delivers:
Technical OverviewFor the technical team, the SmartGATE active energy management system installs after the meter in line with your switchgear. Using our patented technology, we extract a percentage of the load, convert and analyze it, rebuild the waveform, and then inject it back into your system. This provides full voltage regulation (+/- 8%) to your exact specification, on each phase individually to address the main power attributes that impact system reliability, lifetime, and efficiency. All focused on reducing energy consumption while creating optimal power for optimal performance
with a footprint designed for today’s buildings.
The SmartGATE analyzes and corrects the power coming into the building in real time. The patented topology of the system allows for efficiency greater than 99.5% across the operating range.
The core of the system is comprised of 2 transformers, an active bridge, and a control system. The control system analyzes the individual voltage waveform and computes the ideal correction. The first transformer extracts up to 10% of the system power while the active bridge constructs the required waveform correction as determined by the control system. The second transformer is used to inject the corrected waveform back into the building connection. SmartGATE is the only complete power quality management solution sized and priced for commercial building applications with a focus on reducing energy consumption.
Available Features:Full voltage regulation ±8%, Phase Balancing, Voltage Buck up to – 8%, Voltage Boost up to +8%, Sag mitigation, Swell mitigation, Surge Suppression and Power Factor Correction
Legend Customer Results to Date
300+ Installations
Facility Types
52% Office / Classroom
44 % Residential
6% Other
40+ Products Configurable to
100’s of Solutions
All In -$42,000 Low End
All in -$245,000 High End*
Savings Results
Energy Savings
2.3% to 8.7%
Energy Savings
Portfolio Avg 4.2%
Maintenance Savings
2% to 18%
Other KPI’s
74% have multiple
purchases
100% Utility Incentive
100% Reduce Risk and Waste
Key Performance Metrics
300+ systems deployed
75% repeat purchases
125+ customers
10+ marquis customers
3 sales channels
Canada and US success
Avg revenue per sale - $110,000
Legend Power Systems Timeline
Technology developed (patents)
Initial customers
Covid hit / delayed installs Capital to accelerate growth and expand geographically
First and follow-on orders in NY with Tech Fortune 100
Deployed 300th unit
Acceleration back on as people get back to work
Finalized product new features / functionality Now have a solution demanded by the market Product market fit
Set for strong growth in new and existing markets
2010 2013 2018 2019 3/2020 6/2020 8/2020 10/2020 2021+
cost cutting reported $0 revenue
ESCO partnership announced
Occupant Safety Financial Results GHG Reduction ESG Leadership
Legend Power Delivers What Building Owners Need