Leviathan Energy Wind Lotus, Ltd. The Wind Tulip™ The Best Urban Wind Turbine, Combining Functionality with Beauty Dr Daniel Farb, Founder & CEO [email protected] Leviathan Energy - Confidential Our Vision To become the world’s leading supplier of small wind turbines, with a focus on commercial rooftops = small farms Status • • • Several Lotus installations. Only small wind turbine hooked to Israeli grid Purchase Interests for $1,700,000 Israel $ 500 K, Texas $90 K, Italy $ 70 K, France $ 30 K, Belgium $ 10 K, Other Corporations $ 1 m • Milestones 2011 2012 2013 Launch Mass Production of Wind Tulips • 25 Wind Tulips • 2000 Wind Tulips • 7500 Wind Tulips • 7 PCTs and 2 provisionals filed Need $ 3.5-5 m for mass production Leviathan Energy - Confidential The Technology: Foils and Blades The Wind Tulip™ Previous version Wind Lotus™ Herods Hotel in Eilat Wind Model™ It actually accelerates the wind! Wing-Like Behavior of Foil Leviathan Energy - Confidential The Product and Benefits The Wind Tulip™ • Accelerates the wind providing more energy than other similar turbines • An effective ROI (Return On Investment) in an urban setup. • Beautiful design for pride of ownership and advertising. • Low noise and low vibrations. • Safe for birds and other living things. • Creates low turbulence • Operates in turbulent environment • Low cut-in speed IN SUMMARY: The Best for Rooftops and Near People Leviathan Energy - Confidential The Product and the Market The Wind Tulip™ US growth expected to be 13 X over 5 years US Small Wind Turbines Market Growth Predictions Source: See page 6 of the 2009 AWEA Small Wind Turbine Global Market Study at www.awea.org/smallwind/pdf/09_AWEA_Small_Wind_Global_Market_Study.pdf The Explosion in Small Wind is About to Happen Global Installed Capacity for Large Wind, PV and Small Wind (1977–2007) 30000 Large Wind 25000 Small Wind MWp 20000 15000 Solar PV 10000 5000 2013 2011 2009 2007 2007 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 0 years Multiple Sources: 1) 2010 AWEA Wind Turbine Global Market Study at www.awea.org/smallwind/pdf/09_AWEA_Small_Wind_Global_Market_Study.pdf 2) The photovoltaics industry: against all odds, strong growth continues by Paula Mints Solar Server – Online portal to Solar Energy 3) Global Wind 2009 Report – from GWEC (Global Wind Energy Council) The Competition Fuel Use Power Density Maintenance Ecological Footprint Visibility None Aesthetic, Silent $$$ --- --- Ugly, Noisy, Polluting Horizontal Axis Wind Turbines None -- Eyesore, Noisy Other Vertical Axis Wind Turbines None Some quiet, some not Photovoltaic None - Not so visible, Silent Leviathan En. Wind Turbine Diesel Generator Leviathan Energy - Confidential Competition Example Quiet Revolution in UK: ₤36,000 for 5 kilowatts, cut-in speed of 3-5 meters/second. Little intellectual property. Makes single sales. Received around $12.5 million for 49% of company. Leviathan: $7500 for 2 kilowatts but produces effectively about as much power. Rich intellectual property. Plan for group sales. Mass production strategy to provide real value to customer Leviathan Energy Wind LotusTM Marketing Road Map Global Markets Israel as a Beta Market On-Grid – Net Metering NGOs Private Businesses $ 0.1 B Leviathan Energy Corporate Branding Wind Farms $ 0.1 B Public/Government Foreign Distributors Home Users $0.3B Private Businesses $ 10 B Corporate Branding $ 5B Wind Farms $ 5 B Public/Government $1B Home Users $ 10 B NGOs $ 2B Off-Grid – Replacing the Diesel Generator (later stage) IDF $0.1B IDF Bedouin/Farmers Telecom Base stations $ 05 B Foreign Military Foreign Distributors Third World Off-Grid Telecom Integrators OECD Countries Off-Grid $10 B Foreign Telecom base stations $ 5 B Leviathan Energy - Confidential Business Plan Principles First Year: • The focus on sales will be on the Israeli market and finding distributors in North America & Europe. • Expenses will largely go for setting up the production line. • Pilots in Israel for marketing to special clients. • Search for government funding for off grid applications. Second year: • Most sales will be in Israel. • Improvement of production efficiencies & wind turbine performance • High inventory expenses for production ramp up. • Aggressive marketing and participation in trade shows. • Initial sales to distributors • Foreign certifications and permits Third year: • Shift of Sales focus to Overseas. • Setting up of Overseas Marketing Offices both in the US & Europe. Leviathan Energy - Confidential A Great Team for Achievement Prof M.Rosenfeld, Gad Hareli, TAU COO Dr Daniel Farb, Avner Farkash, Ken Kolman, Joe van Zwaren, Chair & CEO CTO VP production VP Bus Dev With Minister Uzi Landau at Hooking to the IEC grid August 2010 Leviathan Energy - Confidential Business Model Revenue model Direct • Corporate Sales Indirect • Local Integrators Integrators • Texas, Italy, France Subsidiaries • USA base to be determined (in the works) Manufacturing Model Contract Manufacturing • ISO Quality Factories Business location • • Headquarters for country by country R&D in Israel Leviathan Energy - Confidential Financials Year 2011 2012 2013 2014 2015 Gross Sales (in K$) 50 12,000 59,000 164,000 336,000 Gross Profit (in K$) -50 3,000 22,000 53,000 112,000 GM % -100% 25% 38% 32% 34% Operation Expenses (in K $) 3,550 4,500 13,633 20,065 36,000 EBIT -3,600 -1,500 9,000 32,000 77,000 Return to Investor: 20x from IPO in 6 years! Leviathan Energy - Confidential 2 Years Plan and Use of Funds Year 1 700 Development 2 200 G&A 500 Funding Schedule Government Funding* 500 450 1 Production & Market Penetration S&M Total K$ Year 3 3 2,700 1,950 4 400 300 2,300 750 250 500 400 1,200 1,450 $250 Grand Total K$ 1 - Pre Production Prototype ready $250 $0 2 Molds positive Pre Prod. Prototype Year 2 Cash fl ow (All in K$) Minus Plus $250 $0 $9,000 3 Prod. Launch 4 Start of Sales * Under Negotiation Leviathan Energy - Confidential Breakdown of $5 M funding 1. Development of Mass Production….3.5 M • • • • • Engineers’ Salaries Pre production models Testing, certification, contractors Production molds Market penetration 1.2 M .45 M .2 M .25 M 1.4 M 2. Working Capital………………………..0.5 M 3. Sales……………………………………..0.5 M 4. IP………………………………………….0.5 M Leviathan Energy - Confidential Thank you! Dr Daniel Farb Leviathan Energy Wind Lotus Ltd www.leviathanenergyinc.com From the US: 1 -323-281-4070 In Israel: 077-228-5111 Email: [email protected]
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