Legend Power Systems Inc. · TSXV:LPS
Legend Power Systems — Investor Presentation (October 2016)
22 slides from Legend Power Systems's investor presentation, October 2016
Slide 1: Corporate Presentation October 2016
Legend Power Systems Inc. TSXV: LPS Corporate Presentation October 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, electrical energy conservation solutions TSXV: LPS www.legendpower.com 3
Slide 4: Why Legend Power?
Why Legend Power? Legend’s ! $38B addressable North American Customers energy saving market opportunity ! Outstanding, proven, patented product ! No direct competitor ! Strong results in 13 targeted market verticals with 130+ units installed to date ! Growing sales funnel and record year- to-date 20
Slide 5: Interesting to Exciting
InteresAng to ExciAng ! Through proof of concept stage ! Demonstrable results in 13 market verticals with world- class organizations • 4 - 8% electricity cost savings • 25 - 30% IRR • Average 3-year payback • 30% incentive eligibility ! Legend offering has moved from customer trial budget to custome
Slide 6: Opportunity Summary
Opportunity Summary ! Every building in North America wastes energy due to over-voltage; 759,000 of which are in market verticals actively served by Legend ! Legend’s solution saves energy in all buildings • proven track record in key verticals ! Customer pain high; quantifiable solutions needed • m
Slide 7: The Problem: Utilities Can't Deliver Precise Voltage
The Problem: UAliAes 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: L
Slide 8: 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 ! Unmet sustainability goals TSXV: LPS www.legendpower.com 8
Slide 9: The Solution
The SoluAon “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 = 62
Slide 10: 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 10
Slide 11: Legend's Harmonizer: Where Proven Technology meets Innovation
Legend’s Harmonizer: Where Proven Technology meets InnovaAon ! 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
Slide 12: Leverage Existing Sales Networks
Leverage ExisAng Sales Networks Existing sales/support networks have relationships 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 Elect
Slide 13: Testimonials
TesAmonials “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 ! Increased energy savings potential ! Reduced production cost per unit ! Consolidation of other standalone electrical room system capabilities into Legend’s solution ! Remote monitoring ! Innovative financing solutions – recurring revenue ! Enter new verticals with power
Slide 15: Key Verticals
Key VerAcals 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/ Hotel University Rec. Center/Government Grocery Office/Proper
Slide 16: Size of North American Market Verticals
Size of North American Market VerAcals # of Existing LPS Market Vertical Addressable Market Systems Big Box Retailers $2.40 billion 21 Office Buildings $5.00 billion 13 Social / Coop Housing $1.04 billion 4 Condos $780 million 1 Schools (K-12) $3.40 billion 19 Medical Marijuana $112 million 1 Univer
Slide 17: Fiscal Q3 2016 Highlights
Fiscal Q3 2016 Highlights TSXV: LPS www.legendpower.com 17
Slide 18: 2016 / 2017 Objectives and Critical Success Factors
2016 / 2017 ObjecAves and CriAcal Success Factors ! Achieve annual sales run rate of $10m Ontario ! Develop presence and order flow in United States ! Achieve quarter-over-quarter sales growth ü Operate in a frugal and cost conscious manner ü Establish relationships with key influencers in New Yor
Slide 19: Path to Future Growth
Path to Future Growth Leverage existing channel sales networks ! Grow distribution channels 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
Slide 20: 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 21: Share Structure
Share Structure TSXV: LPS Shares Issued & Outstanding: 70.1m Warrants: 17.2m Options: 6.1m Fully Diluted: 93.4m 52 Week High/Low: $0.475 / $0.19 (October 6, 2016) TSXV: LPS www.legendpower.com 21
Slide 22: Contact Us
Contact Us Randy Buchamer, President and CEO TEL: (778) 945-1501 rbuchamer@legendpower.com | www.legendpower.com For Investor Inquiries: Steve Vanry, CFA Chief Financial Officer Tel: (604) 449-2047 svanry@legendpower.com TSXV: LPS www.legendpower.com 22
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