summit 05 presentations 06d gerwing

Sensible Solar Energywww.power-spar.com

1

1. TEAM Support

2. Status Update

3. Corporate Vision

4. Market Pain

5. Solution

6. Market Opportunity

7. The Market

8. The Sales Funnel

9. Technology Plan & Platform

10. Product Plan

11. Competition

12. Customer’s Value Proposition

13. Operations Plan

14. The Team

Agenda


2

TEAM (Technology Early Action Measures) Support

… what it means to Menova

• Project Enabling– Financially cross the valley between high cost low

volume production to low cost product

• Managed technically by NRCan• Testing• Performance Analysis• Due Diligence

• Networking• Demonstration Support

• Schools, CCHT, Roger’s House, Residences

Getting Started

From our Early Adopters and

Menova…Thank you TEAM


3

Channel Partner News• VCI Controls – School Board and Government

Building Access - Developed Bilingual DDC work for all ESCO’s, Quoted 2 Schools $1.8M

• Direct Energy – Purchased a system for Roger’s House (CHEO) in Ottawa working with their business development manager weekly, Quoted 8 Tim Horton’s Stores, York University, Ottawa U and St. Lawrence College.

• Select Power – Guelph Hydro Signed as a Distributor for the Power-Spar

Agents• Bruce Dorn-Veevers selling lighting solutions to

rural Ont. Schools signed up as a Rep., delivers upper Ottawa Valley School Boards and high end building market in Eastern Ontario

Sales Funnel Development – July ’05


4

Item Date Status

Product Launch Mar. 27, 04 Done

First Sale Signed April 24, 04 Done

Commission 1st Assembly Line Sept 05 Ramping up Volume

Residential Lease Program Oct, 04 Done 6.25% 10 Yr. Term

Industrial and Com. Financing On-Going MOU on Metered Energy

First Distributor Sept. 04 Done – Select Power

Capital Injection Mar 2005 On-going

Multi-Sun Product Launch Q2 ’06 Designed

$1.6M TEAM Grant Approved Feb ’05 Signed

$700k Sales Commercial & Residential

April ‘05 Installs Partially Complete

$800k Sale to Rural ON School June ‘05 Dec 05 Commissioning

Licensed Assembly Operations Late 2005 Early Negotiations

Status Update


5

Menova Energy is focused on providing sustainable renewable energy solutions

for valued customers

Corporate Vision


6

Rising costs... Service interruptions... Corporate environmental policies...Real Blackout Costs… Green Government Environmental Legislation

Market Pain


7

– generates heat at a fraction of retail prices today – will generate electricity at a fraction of retail prices in year 2

– freezes heat and power rates for 20 years – provides emergency power during blackouts– discharges stored green energy to the grid precisely when

needed to maximize ROI

The Solution


8

• MARKET is heating up

• PRODUCT mix is in demand

• TEAM is experienced and focused

WHY Menova Energy Now?


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1. Energy costs are rising every year• 11% - electricity – Peak Pricing & Stored Thermal Energy• 25% - natural gas• 50% - oil

2. Reliability of the electrical distribution, generation and supply is questionable

3. Demand for green power is real:• Many North American utilities, like OPG require up to 2/3 of their

capacity replaced by 2020• LDC’s in Ontario now have conservation incentives and real consumer

programs• Ontario is calling for 1.35 GW of green power by 2007… 300 MW RFQ

hit the street last Friday!

4. Government incentives for green energy are crystallizing

The Market Opportunity

As a result… customers are nervous about supply and want to hedge cost increases so…a market demand for cost effective and reliable distributed energy generation is growing


10

• MARKET DRIVERS…– Continuing, permanent shift to natural & greener

products– Strong MARKET PULL as both consumers and

manufacturers are legislated green– Competitive desire by manufacturers and service

providers to incorporate sustainable technology ingredients into product & service offerings

The Market Opportunity … cont.


11

THE MARKET IS…– Every building that the sun shines on– Becoming aware of energy & environmental issues– Seeking cost effective renewable energy solutions

Commercial

Space Heating53%

Non-Heating Electrical

37%

Water Heating10%

Market

Building Energy Use


12

North American Solar Thermal & Electric Market Potential *

* 1. USA market five times Canadian (northern application)

2. Not applicable to 65% of buildings due to a lack of space, no solar sight lines etc

3. Assumes Power-Spar can displace 50% of electrical and building heating

4. Assume 1% adoption of above

Total North American Solar Thermal Electric Market = $9.7 B *

Power-Spar 2006 Target = $15 M

Top-Down Market Size Based on Energy Use


13

THE PRODUCTS ARE– Technically superior– Patent applied for technology– A complete range – Energy Generation, management, and

end use appliances– Regional economic development =>remote assembly plants– Addressing four key market drivers

• Less $ than existing source

• Fear of price increases for existing energy source

• Fear of shortage of incumbent energy supply

• Environmental $ incentives

– Smart, validated, monitored “in-your-face” low cost energy

WHY this Product Mix?


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Building Integrated Heat & Power


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Hydro Easement

Power Plant


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Parking Lot

Power Plant


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6 feet

Side View of Power-Spar

For Reference

Only

TECHNOLOGY PLATFORM


18

INCOMINGSOLAR

ENERGY

INCOMINGSOLAR

ENERGY

Solar energy is reflected and concentrated onto two absorbers which in turn heats the glycol fluid.

High efficiency1-SUN PV CELLS

Patent Pending

Absorbers (2 per spar)

TECHNOLOGY PLATFORM: How it works


19

Thermal Insulation

Integrated Thermal Absorber & Cooling / Heating Pipe

OPTIONAL 20% Efficient Multi-Sun PV Cells (3 watts cells yield 9 watts of power)

Close up of the Absorber – illustrating thermal & solar power components

Patented Optical-Thermal Diode Reflectors

TECHNOLOGY PLATFORM: How it works


20FULL SYSTEM DIAGRAM


21Spar-Net: Power-Spar Web Enabled Control & Validation

Jan 23, 2005 -17 Deg C


22Power-Spar is Performing ~ 20% better than planned


23Competitive Renewable Products


24

20 year pricing is projected at current five year energy Inflation rate of rate of 10%

Competitive Renewable Products


25

• Co-generates Renewable Heat, Air Conditioning, Electricity, Light

• Patent fence strategy• Scaleable, modular, upgradeable solution• First mover “integrated solution” advantage• Local Assembly will build brand loyalty• Smart validated green energy• Maximize existing channel partner access to

markets

Sustainable Competitive Advantages


26Customer’s Value Proposition: Return on Investment

Year from Purchase

CA

SH

FL

OW

Thermal heat & hot water only, no pool heating or solar cells deployed

Cash flow for an n-Panel Power-Spar system


27

• Contracted Manufacturing• Licensed Assembly and Installation

– Partners in Support of Direct Sales Team

• Menova Energy Corporate Staff focus on– Purchasing, Logistics, Customs, Spar-Net

Data Centre

• Territory Office focus on– Installation logistics coordination and training

Operations Plan


28

THE TEAM IS…– Focused on recruiting leaders experienced at

growing a start up business in this industry– Using proven sales agents and channel partners– Supported by strong Board of Advisors– Driven by an innovative product development

team – Completed with a world class manufacturing

partner

Team


29

Dave Gerwing, P.Eng. President & CEO

24 years experience, Engineering, Management, Marketing, Innovation, Productization. Grown a profitable service firm to 18 employees in 8 years.

Rick Norland, P.Eng., MBA CFO 21 years experience, founding, financing, business management, financial consulting to startups and running companies. Successful in negotiating financing deals up to $350M.

Steve Tennant, Installations Manager

26 years experience, Operations, Field Installations

Menova Engineering, Contract Support Team

R&D, Product Development, Sales Support, Engineered Solutions

Management Team


30

PRODUCT DEVELOPMENT

Strategic Relationships

CustomerRequirements

CommercialChannelPartners

Product E

ngineering, D

esign &

Manufacturing Support

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Key

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Diversified Energy

Channel Partners

Customer Financing

summit 05 presentations 06d gerwing

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