Legend Power Systems Inc. · TSXV:LPS
Legend Power Systems — Investor Presentation (November 2017)
22 slides from Legend Power Systems's investor presentation, Nov 21, 2017
Slide 1: Making Buildings Better
Making Buildings Better. November 2017 legendpower.com
Slide 2: Making Buildings Better
“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 during our su
Slide 3: 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 4: Capital Structure: TSXV:LPS
Capital Structure: TSXV:LPS As of November 17, 2017 Shares (Issued & Out): 84.3M Cash: C$1.7M Warrants *: 3.0M FD Cash (incl. Warrants): C$3.0M Options: 8.1M Current Working Capital: C$4.7M Fully Diluted: 95.4M Debt: $0 52 Week High/Low: C$0.82 / C$0.25 Market Cap (Basic) C$55.6M *C$0.40, expire Dec
Slide 5: Summary
Summary High margin (~50%), low capital cost, and easily scalable business Patent protected solution with no direct competitors 200+ successfully saving energy across 13 verticals First US install completed with Global Fortune 100 Company Hired U.S. industry veterans to duplicate successful sales mo
Slide 6: Legend's Customers
Legend’s Customers Who has invested in Legend’s technology? Every customer saves money on electricity. ©2017 Legend Power Systems Inc. Private & confidential. 6
Slide 7: The Problem: Overvoltage
The Problem: Overvoltage Utilities face challenges that force them to over supply voltage. The Utility Challenge Line-Loss Over Distance Daisy-Chain Connection 575 v 60 v wasted Variable 575 v Demand 48 v wasted 575 v 45 v wasted 575 v 50 v wasted 575 v 43 v wasted 635 v 625 v 623 v 620 v 618 v ©201
Slide 8: Consequences of Overvoltage
Consequences of Overvoltage The damaging effect buildings suffer as a result of overvoltage. • Higher electricity bills • Increased energy (kWh) consumption • Increased greenhouse gas emissions • Reduced life of equipment • Higher equipment maintenance costs • Unmet sustainability goals • Who suffer
Slide 9: The Solution
The Solution Legend Power’s Harmonizer Voltage Reduction Technology. 620 Volts 575 Volts Electricity Usage Power Source Harmonizer The Harmonizer is an intelligent system for saving money on electricity. It measures incoming voltage, calculates the overage, and automatically throttles the over suppl
Slide 10: The Harmonizer
The Harmonizer Industrial technology applied in an innovative way. • No direct competitor – patented technology • 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
Slide 11: The Opportunity
The Opportunity Legend’s solution is unique, proven, and • Every building in North America wastes energy due to overvoltage: 759,000 buildings are in market verticals actively served by Legend • Legend’s solution saves energy in all buildings • Proven track record in key verticals • 4 - 8% electrici
Slide 12: Key Verticals
Key Verticals Legend has testimonial customers in every market vertical. RETAIL APARTMENT/CONDO EDUCATION HOTEL REC. CENTER / OFFICE/PROPERTY GROCERY SHOPPING CENTER GOVERNMENT MANAGEMENT As rising electricity rates continue to erode bottom lines, Legend’s market opportunity will continue to grow. ©
Slide 13: The Size of the North American Market
The Size of the North American Market The Legend opportunity, quantified. # of Existing LPS Market Vertical Addressable Market Systems Big Box Retailers $2.40 billion 25 Office Buildings $5.00 billion 15 Social / Coop Housing $1.04 billion 5 Condos $780 million 1 Schools (K-12) $3.40 billion 72 Medi
Slide 14: Go-to-Market Strategy
Go-to-Market Strategy The plan for rapid, scalable expansion of Legend Power Existing sales/support networks have relationship’s with thousands of potential new Legend customers. Legend intends to leverage these existing networks by creating additional revenue streams to channel partners and rapidly
Slide 15: Record Quarter
Record Quarter Legend posts record results for quarterly revenue, # of units sold, GM, and committed orders. ©2017 Legend Power Systems Inc. Private & confidential. 15
Slide 16: Improving Financial Metrics
Improving Financial Metrics Financial highlights. Three-months ended June 30, Nine-months ended June 30, (Cdn$, unless noted otherwise) 2017 2016 Change 2017 2016 Change Revenue 1,516,813 588,982 157.5% 3,163,042 2,036,782 55.3% Cost of sales 799,219 284,262 181.2% 1,658,365 1,234,109 34.4% Gross ma
Slide 17: Legend Reseller Program
Legend Reseller Program Rapid and cost-effective expansion through partners. • Target independent electrical contractors and engineers with relationships in target markets • Represent Legend in distinct geographical regions Reseller gets: • Unique product • Ability to increase revenue with existing
Slide 18: Legend Reseller Program
Legend Reseller Program Rapid and cost-effective expansion through partners. Legend gets: • Shortened sales cycle • Lower cost / higher profit sale • Local expertise, knowledge, and relationships • Fast and low-cost expansion opportunities • Installation partner with local resources • Low cost marke
Slide 19: 2018 Goals & Objectives
2018 Goals & Objectives The top goals for Legend to achieve in 2018. Generate $10M in sales Develop significant presence and order flow in United States Achieve quarter-over-quarter comparative sales growth Deliver increased customer value via enhance product capabilities Launch reseller program wit
Slide 20: Board of Directors
Board of Directors Management & Corporate Governance 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 r
Slide 21: Reasons to Invest
Reasons to Invest Summary of key investment details for the Legend Power opportunity. Organic growth driving rapid expansion in developed market verticals 3 market verticals per territory to capitalize on Proven roadmap for US expansion Proven sales success: demonstrable results with 200+ systems so
Slide 22: Contact Us
Contact Us Please reach out should you have any questions about Legend. Randy Buchamer, President and CEO TEL: (778) 945-1501 rbuchamer@legendpower.com | www.legendpower.com For Investor Inquiries: Steve Vanry, CFA Sean Peasgood Chief Financial Officer Sophic Capital Tel: (604) 671-9522 Tel: (416) 5
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