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]