Slide 1: Corporate Presentation May 2016
Legend Power Systems Inc. TSXV: LPS Corporate Presentation May 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and
Slide 3: Our Mission
Our Mission Be the leading global provider of innovative and sustainable, energy conservation solutions TSXV: LPS www.legendpower.com 3
Slide 4: Why Legend Power?
Why Legend Power? Legend’s Huge potential; $35B+ North American Customers energy saving market Outstanding, proven, patented product; no direct competitor Proven results in all of Legend’s eight targeted verticals Growing sales funnel; record sales Q1- 2016 High margin; low capital cost expansion st
Slide 5: Opportunity Summary
Opportunity Summary Every building in North America wastes energy Legend’s solution saves energy in all buildings • proven track record in key verticals Customer pain high; quantifiable solutions needed • most North American markets experiencing annual energy price increases • many customers view en
Slide 6: The Problem: Utilities Can't Deliver Precise Voltage
The Problem: Utilities Can’t Deliver Precise Voltage The electrical utility provides power at an unregulated and often higher than needed voltage level; customer pays for this over-voltage. Supply Lines POWER PLANT 575V 575V Distance 575V High Voltage Substation Voltage Supplied 630V 615V 600V TSXV:
Slide 7: Consequences of High Voltage
Consequences of High Voltage Higher electricity bills Increased energy (kWh) consumption Increased greenhouse gas emissions Reduced life of equipment Higher equipment maintenance costs TSXV: LPS www.legendpower.com 7
Slide 8: The Solution
The Solution “Conservation Voltage Reduction”, (CVR) Legend’s proprietary offering, the "Harmonizer”, applies the CVR concept at the utility feed of buildings in order to fine tune voltage, based on proven industry standards, resulting in reduced electricity consumption. INCOMING UTILITY VOLTAGE = 6
Slide 9: What is Conservation Voltage Reduction?
What is Conservation Voltage Reduction? A proven method of lowering electricity consumption through the reduction of voltage Abundant supporting research Practiced by utilities at a grid level TSXV: LPS www.legendpower.com 9
Slide 10: Legend's Harmonizer: Where Proven Technology meets Innovation
Legend’s Harmonizer: Where Proven Technology meets Innovation Quick ROI - average payback of 3-years Electricity Reduction - up to 8% reduction in electricity bills 10 Year Warranty - unmatched long term savings Intelligent Controls - dynamic capabilities adjust system to voltage requirements in rea
Slide 11: Key Verticals
Key Verticals Legend has testimonial customers in every major target market vertical. As rising electricity rates continue to erode bottom lines, Legend’s market opportunity will continue to grow. Retail Apartment/Condo Education – School/University Hotel Rec. Center/Government Grocery Office/Proper
Slide 12: Leverage Existing Sales Networks
Leverage Existing Sales Networks Existing sales/support networks have relationship’s with thousands of potential new Legend customers. Legend intends to leverage these existing networks by creating additional revenue streams to channel partners and rapidly increase sales. Legend’s Partners Power Ele
Slide 13: Testimonials
Testimonials “Reducing energy consumption is the most effective way to mitigate rising energy rates and fight climate change. The Harmonizer is a seamless energy saving solution that works and is an excellent energy saving solution.” — Doug Inglis, Dealer Canadian Tire Meadowvale, Mississauga. “Even
Slide 14: Product Enhancement Roadmap
Product Enhancement Roadmap Increase energy savings potential Reduce production cost per unit Consolidation of other standalone electrical room system capabilities into Legend’s solution TSXV: LPS www.legendpower.com 14
Slide 15: Fiscal Q1 2016 Highlights
Fiscal Q1 2016 Highlights October to December 2015 $778,352 in revenue; (record sales quarter) Achieved excellent results at one of the largest Canadian property management firms Secured new initial orders with accounts having potential for national rollouts within their network Obtained “Market Par
Slide 16: 2016 Objectives and Critical Success Factors
2016 Objectives and Critical Success Factors Ensure adequate and stable working capital Operate in a frugal and cost conscious manner Achieve annual sales run rate of $10m Ontario Achieve quarter-over-quarter sales growth Establish relationships with key influencers in New York area Develop presence
Slide 17: Path to Future Growth
Path to Future Growth Leverage existing channel sales networks Continue to prove business model in Ontario Expand to north eastern United States Implement “Rest Of World” plan (distributors) Continue to innovate and enhance product capabilities Low cost expansion; outsource assembly to in-region par
Slide 18: Board of Directors
Board of Directors Randy Buchamer – President & CEO Randy was Managing Director, Operations for The Jim Pattison Group and held executive roles with Mohawk Oil Company and directorships of several technology and resource firms. Under his leadership, Mohawk Oil was restructured, underwent a successfu
Slide 19: Share Structure
Share Structure TSXV: LPS Shares Issued & Outstanding: 68.3m Warrants: 19.2m Options: 6.2m Fully Diluted: 93.7m 52 Week High/Low: $0.475 / $0.19 (As of May 17, 2016) TSXV: LPS www.legendpower.com 19
Slide 20: Contact Us
Contact Us Randy Buchamer, President and CEO TEL: (604) 420 1500 info@legendpower.com | www.legendpower.com For Investor Inquiries: Social Media: Steve Vanry, CFA LinkedIn Chief Financial Officer @LegendPower Tel: 604-449-2047 Google+ svanry@legendpower.com TSXV: LPS www.legendpower.com 20