EnerLume Energy Management Corp
EnerLume Energy Management — Investor Presentation (January 2008)
26 slides from EnerLume Energy Management's investor presentation, Jan 7, 2008
Slide 1: Bridging the Global Demand for Energy Conservation
Two Broadway Hamden, CT 06518 (203) 248-4100 www.enerlume.com Bridging the Global Demand for Energy Conservation
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” are those statements that describe management’s beliefs and expectations about the future. Although we believe these
Slide 3: Organization Chart
EnerLume Energy Management Corp. F/K/A Host America Corporation RS Services Wholly Owned Subsidiary Of EnerLume Energy Management Corp. EnerLume Corp. Wholly Owned Subsidiary Of EnerLume Energy Management Corp. Organization Chart
Slide 4: Acquisition History
Acquisition History • GlobalNet Energy Investors – Developed prototype called “LightMasterPlus” – EnerLume acquired GlobalNet in December 2004 – Merged GlobalNet into RS Services in April 2005 – EnerLume redevelops the prototype, names it EnerLume|EM ® , files for patent protection on March 30, 2007
Slide 5: Acquisition History
Acquisition History • EnerLume Corp. – Organized in July 2007 – Organized to market energy saving products – Transferred the EnerLume | EM ® from RS Services into EnerLume Corp. in July 2007 • EnerLume Energy Management Corp. – Sold food service business and renamed Host America to EnerLume Energy M
Slide 6: EnerLume Energy Management Corp. Mission Statement
EnerLume Energy Management Corp. Mission Statement Our mission is to lead the marketplace to new levels of efficient utilization of utilities and global energy conservation. Through research and development we provide the customized products and services for a business committed to the high technolo
Slide 7: Why Look At Lighting?
Why Look At Lighting? • Lighting accounts for 40%-80% of electricity used in most Commercial and Industrial facilities* • Fluorescent Lighting with T8 ballasts and lamps is cost effective and reliable • EnerLume | EM ® reduces consumption when added to T8 fluorescent lighting systems • Electric rate
Slide 8: Nationwide Electricity Cost and Estimated Market Share
* Source: www.eia.doe.gov ** Source: Management Estimates Nationwide Electricity Cost In 2005 + Estimated Market Share 2005 Commercial and Industrial Cost Total Commercial and Industrial Space Nationwide kWh Consumption * 2,294,235,085,000 Sq. Ft of Comm. & Industrial Space * 73,000,000,000 Lighting
Slide 9: EnerLume Energy Management
ENERLUME Energy Management
Slide 10: How It Works
How It Works • EnerLume | EM ® uses a patent pending proprietary algorithm to manage how power is consumed by the ballasts (eliminating a small portion of the sine wave where the lighting system draws current but does not efficiently produce light) • EnerLume | EM ® maintains full, peak voltage for
Slide 11: EnerLume|EM Durability
EnerLume | EM ® Durability • Heatsinks designed for 24/7/52 at 150 ° F • Passive Cooling - no fans, no static electricity, no dust • Cabinet is galvanized and powder coated • Hardware is stainless steel • Microprocessor is used by automakers as the underhood engine management system
Slide 12: EnerLume|EM Durability
EnerLume | EM ® Durability • Solid state components have “infant mortality or infinite life” • Each unit factory “burned in” at full power to minimize the chance of “out of box” failures • U.L. testing at 125% of rating for extra life • Expected life is over 15 years at full power
Slide 13: Typical Installation Configuration
ENERLUME (- opp Energy Management ENERLUME | ¢ yy Existing or LIGHTING PANEL, TYPICAL INSTALLATION CONFIGURATION Ener ume-EM® Energy Management 160-200 Amp. 120/208 to 2771480V SPeW
Slide 14: Beat the Rate Hikes: Facility Needs
Beat the Rate Hikes Save Energy Maintain Light Great ROI Facility Needs • Survive Crippling Electric Rate Increases • Maintain Lighting Levels in work areas • Create an Affordable Solution
Slide 15: Meeting the Needs
Meeting the Needs • Drops Electric Consumption – Up to 15%-18% savings with less than 5% foot-candle loss at the floor – Additional savings by using the EnerLume | EM ® software as an energy management system – Underlying technology validated by testing at United States Department of Energy lab at O
Slide 16: Marketing Plan North America
EnerLume Corp. Wholly Owned Subsidiary Of EnerLume Energy Management Corp. Master Channel Partners (MCP) Direct Channel Partners (DCP) Channel Partners (CP) Channel Partners (CP) Sales Requirements Inventory Requirements Wholesale Pricing No Sales or Inventory Requirements Price to DCP 131% greater
Slide 17: Marketing Plan International
Marketing Plan International • Canada and Mexico through Channel Partners • Overseas countries will be on a licensed basis – Exclusive rights for each country – One time fee for exclusivity – Yearly license fee – Royalty fee per unit sold
Slide 18: Marketing Plan
Marketing Plan • Clients in “high rate” states – California, Texas, Florida, Northeast • Clients with greatest chance of success – Parking Garages, Retail Stores, Schools, Distribution Centers and Warehouses • Previous lighting retrofit clients – additional savings • EnerLume savings creates competi
Slide 19: Case Studies
Case Studies • Dean Warehouse Chain (Rhode Island)— Savings of 18% • Pepsico Bottling Plant (Rhode Island)— Savings of 15% • Medway High School (Massachusetts)— Savings of 18% • UCONN (Connecticut)—Savings of 17%
Slide 20: EnerLume|EM Features
ENERLUME |- opp Energy Management ¢ Saves Energy Needs no s pecial ballasts Maintains Light Levels Allows pro Extends ba grammable changes last life Reduces A/C loading Listed by UL/CUL Patent Pending
Slide 21: New Product Development
New Product Development • 30 amp EnerLume | EM ® Model – Anticipated Market Introduction Fall 2008 • Daylight Harvesting Ballast – Anticipated Market Introduction Summer 2008 • LED Lighting – Anticipated Market Introduction 2009-2010
Slide 22: ROI
ROI • Break Even Point is nearly always less than 24 months – Add utility rebates − Often drops to 18 months – Add tax deductions from EPACT Tax Act of 2005 − Often drops to less than 12 months – Add tomorrow’s electric rates − Who knows?
Slide 23: Forecast Fiscal 2008 Opportunities
FORECAST - FISCAL 2008 + OPPORTUNITIES • Each MCP agreement requires upfront Inventory purchase requirement • Pricing to MCP: – 60 Amp unit = $2,395 – EnerLume Cost of $895 = Margin of 62% – 100 Amp unit = $3,195 – EnerLume Cost of $1,125 = Margin of 65% – 200 Amp unit = $4,995 – EnerLume Cost of $1
Slide 24: Energy Product Forecast 2008
Actual Forecast F2007 F2008 EnerLume | EM ® Amp Amp Amp Total Product Sales - Units 1,600 EnerLume | EM ® Amp Price to MCP $2,395 $ 31,135 $ 1,278,930 Amp Price to MCP $3,195 271,575 2,511,270 Amp Price to MCP $4,995 124,875 1,398,600 Freight & Other 17,415 224,000 Total Product Sales - $ $445,000 $
Slide 25: Anticipated Profitability
Anticipated Profitability • Given that estimated Margin is anticipated at 50% - 55% … – Anticipate monthly positive cash flow from operations by end of fiscal year (June 30, 2008) – Anticipate overhead costs fully absorbed after approximately $5.5M in EnerLume | EM ® sales – Anticipate overall Corpo
Slide 26: Bridging the Global Demand for Energy Conservation
Bridging the Global Demand for Energy Conservation
EnerLume Energy Management — Investor Presentation (January 2008) on 6ix