By HE Yu, WU Hui, RONG YingPeking University

E-Collector Team

Step Collector: Collect Energy from every step

—— Proposal for the Footstep Energy Generating System

Intro Business Model

Market& Strategy Finance

Introduction1 Business Model2 Market& Strategies3

Pains of BeijingOur Solution

Conclusion: By converting footsteps into electricity we help to save energy as well as increasing peoples’ happiness Conclusion: We tailor our

products to satisfy different segmented market.

Conclusion: The market is a promising one. By exploiting the market, we creatively save the energy.

Conclusion: We need 3 years to break-even on the Beijing Subway projects, good opportunity for investors.

Case: Cooperation with Beijing Subway

Public transportBusiness useHome use

Market Size

Marketing

Timetable

Our Mission

Product Lines

Finance4

Financial forecast

Potential Risk

Funding

Energy saving from each of your steps.

IntroIntro Business Model

Market& Strategy Finance

High living pressure

Waste of Energy

There’s a really heavy foot-traffic everyday in Beijing, especially in the subway stations, bus stops and shopping malls, etc.

Pains of Beijing

In such a city of high living cost and intense competition, many people suffer from depression and subhealthy, because of the huge pressure of working,

Beijing is the capital and the second largest city in China, with nearly 20 million people living and traveling in the city.

Many other nations are focusing on the popular green energies such as wind, solar, and wave energy. But what about looking at a more people-centric way of generating energy?

What if they can be highly involved in the energy-saving activities without extra effort? Will they regard the activities as an outlet of pressure?

Intro Business Model

Market& Strategy Finance

Our Solution

Power Generating

Hum

an Activities Based

–Absorb the kinetic energy produced by every footstep(2.1 Watt Hours per 600 steps for each single slab)–Energy stored within lithium polymer batteries or connected to devices nearby to directly usage–Fitted into pavement/ flooring in either interior or exterior spaces–An estimated system life of 20 million steps–Cost of $3 vs. $10 equivalent energy per slab

Top surface: recycled rubber tyres, 5mmInternal: recycled aluminiumExterior housing: marine grade 316 stainless steel

–Serve as information gatherers about flow of the people, which can be used to build “Smart Road”–Energy production cycle coincides with consumption peak cycle–Reduce the need of energy companies to oversupply the network in order to sustain the surge in energy consumption during peak times

Piezoelectric materials generate electricity from pedestrian movement .

BariumTitanateAluminium Nitride

Quartz

Lead

Nio

bate

LED lights installed: adding interactivity to encourage people’s use

IntroIntro Business Model

Market& Strategy Finance

A typical day of Andrew

Andrew

- 25 years old-Work in marketing department for an international company in Beijing- Use subway and bus as main transportation

Our Solution

9:00 am

-As usual, the subway station is crowded with people

-Andrew steps on some colorful rubber tiles on the floor

Usage of the power

12:00 am

-Feeling a little tired from work, Andrew goes to the leisure room

- The new facility is a pressure relief wall. Interestingly, it can generate power from each thumps

Usage of the power

13:00 am

-After lunch, Andrew passes a newly built shopping mall.

- The interactive game in the shopping mall becomes a new highlight .

Usage of the power

14:00 am

-Andrew wants to choose an innovative gift for his girlfriend’s birthday

- The newest version of dance mat can generate power by itself

Usage of the power

10:00 pm

- Andrew went to club with some friends

- The floors are covered with the energy generating tiles

Usage of the power

The floors are covered with the energy generating tiles.

Intro Business Model

Market& Strategy Finance

Introduction1 Business Model2 Market& Strategies3

Pains of BeijingOur Solution

Conclusion: By converting footsteps into electricity we help to save energy as well as increasing peoples’ happiness Conclusion: We tailor our

products to satisfy different segmented market.

Conclusion: The market is a promising one. By exploiting the market, we creatively save the energy.

Conclusion: We need 3 years to break-even on the Beijing Subway projects, goo opportunity for investors.

Case: Cooperation with Beijing Subway

Public transportBusiness useHome use

Market Size

Marketing

Timetable

Our Mission

Product Lines

Finance4

Financial forecast

Potential Risk

Funding

Energy saving from each of your steps.

Intro Business Model Market& Market&

StrategyStrategy Finance

Our Mission

Create a sustainable Eco-city in a people-centric way!

Mission

People

PartnersPublic

Goal

•Create a strong visual link between the slab and a sustainable attitude• Help people to relieve work pressure

• Change trash into treasure• Energy saving and environmental friendly

• Our customers are our partners • We help them to create new value

Intro Business Business ModelModel

Market& Strategy Finance

Product lines

Home use Business Use Public Transport

Slogan

Keyfeatures

To be a Eco-citizen from every step!

Replace traditional tiles with Step Collectors; Turn the trashes into treasures; Allow companies who want to promote green activities to advertise on them (Only for Social Responsibility Promotion); Better control of the flow of people and adjust the lighting intensity automatically.

Benefits to the user

Generate power for daily operation; Reinforces a sustainable attitude and an increased awareness of the energy that is continually created and expended by each individual; Share advertisement revenue with Step Collector; Better energy management from automatically lighting control system

Intro Business Business ModelModel

Market& Strategy Finance

Product lines

Home Use Business UsePublic Transport

Slogan

Keyfeatures

We together build a sustainable community

Install energy generating tiles on the ground; 5% of the energy generated per footstep is used to illuminate the central low energy LED lamp or operate the small games

Benefits to the user

Electricity can be used for illumination; Promote oneself as an Eco-bar/Eco-mall/Eco-club; Increase customers’ pleasure.

Bars &Clubs, Shopping Malls

Intro Business Business ModelModel

Market& Strategy Finance

Product lines

Home use Business UsePublic Transport

Slogan

Keyfeatures

All for the employees’ welfare!

Install pressure relief wall in the offices; The wall makes sounds under each strike;Automatically calculate the amount of energy generated by one person.

Benefits to the user

Electricity generation for mobile charge; Good for employees’ mental health; Create an environmental friendly image.

Companies

Intro Business Business ModelModel

Market& Strategy Finance

Product lines

Home use Business UsePublic Transport

Slogan

Keyfeatures

Contribute to energy saving while exercising and entertaining!

Two products: dance met and piano met; Generate power when you step on it; Help you to calculate your calorie consumption as well as energy contribution; The generated electricity stored within lithium polymer batteries can be used to charge cell phones.

Benefits to the user

Exercise and relax; Generate electricity; Have fun from energy saving

Intro Business Model

Market& Strategy Finance

Introduction1 Business Model2 Market& Strategies3

Pains of BeijingOur Solution

Conclusion: By converting footsteps into electricity we help to save energy as well as increasing peoples’ happiness Conclusion: We tailor our

products to satisfy different segmented market.

Conclusion: The market is a promising one. By exploiting the market, we creatively save the energy.

Conclusion: We need 3 years to break-even on the Beijing Subway projects, goo opportunity for investors.

Case: Cooperation with Beijing Subway

Public transportBusiness useHome use

Market Size

Marketing

Timetable

Our Mission

Product Lines

Finance4

Financial forecast

Potential Risk

Funding

Energy saving from each of your steps.

Case : Cooperation with Beijing Subway

Intro Business Model Market& Market&

StrategyStrategy Finance

50 million people traveling by the Beijing subway everyday 123 subways stations in Beijing, 150 more on construction For a large subway station in Beijing, the foot traffic is about 80,000 everyday

Key Information about Beijing Subway

Energy audit, consulting, design, construction.

Step Collector

Ann

ual

Pay

men

tA

nnual

Paym

ent

Performance EvaluationPerformance Evaluation

Risk-Free PlanAnnual payment based on performance of electricity generationCriteria for power generation performance are predefined in contract Risk-free for Beijing subway

Cooperation Mode

Case : Cooperation with Beijing Subway

Intro Business Model Market& Market&

StrategyStrategy Finance

Annual

Paym

ent

Assume that the foot traffic collection rate is 40% 1000 slabs (90 square meters) in a big station, 800 slabs (70 square meters) in a medium station

Electricity Generation

•The generated power is used in subway stations• 2555000 kwh per year• $319375 per year

Advertisement •Outdoor advertisement on half of the collectors• Target to companies who want to promote CSR• Only 2/3 for commercial use• Assume $100 per square meter

Case : Cooperation with Beijing Subway

Intro Business Model Market& Market&

StrategyStrategy Finance

Annual

Paym

ent

Assume that the foot traffic collection rate is 40% 1000 slabs (90 square meters) in a big station, 250 slabs (40 square meters) in a medium station

Electricity GenerationAdvertisement 100% 50%

50%

Case : Cooperation with Beijing Subway

Intro Business Model Market& Market&

StrategyStrategy Finance

Assume that the foot traffic collection rate is 40% 1000 slabs (90 square meters) in a big station, 250 slabs (40 square meters) in a medium station

Case : Cooperation with Beijing Subway

Intro Business Model Market& Market&

StrategyStrategy Finance

Assume that the foot traffic collection rate is 40% 1000 slabs (90 square meters) in a big station, 250 slabs (40 square meters) in a medium station

Energy Saving

Less Pollution

• Generating 2,555,000 Kwh of electricity per year• Saving 850 tons of standard coals • Saving 5,000 cubic meters of water

• Reducing >2000 tons of CO2 • Reducing15 tons of SO2 & NOx • Reducing Incineration ash

We cooperate to create a sustainable Beijing

Home use

Intro Business Model Market& Market&

StrategyStrategy Finance

Market Size

Business use Public Transport

Segmentation Features

Estimated Market Volume

Install Step Collectors in the public transportation system to harvest pedestrian power

123 subway stations , 5 in construction More than 700 bus stops

7300 square meters 7000 square meters

More than 200 large shopping malls, 10 square meters/mall; 500 bars& clubs, 10 square meters/mall

Description

Commercial and entertainment centers can use Step Collectors to get power while increasing peoples’ happiness

Household Step Collector games help people to relieve and gain a sustainable mindset

3 million Business professionals between 25-40 Assume that 1/100 have buying potential

60000 square meters

Home use

Intro Business Model Market& Market&

StrategyStrategy Finance

Marketing

Business use Public Transport

Offer free initial installation but charge according to the electricity generating performance

Pricing Strategy Charge for the initial

installation

The electricity generated

Charge for the final product

Focus on the high-end customers and charge a price premium

ElectricityAdvertisement

100%

Customers

50%50%

ElectricityAdvertisement

60%

Customers

50%40%

Intro Business Model Market& Market&

StrategyStrategy Finance

Timetable

Timeline

Manufacture home use stress-relief products

a) Multilateral Negotiation

R&D core experts

Negotiation with governments for support and subsidy

Construction of plants

Expend to bus stops and other public transport

Implementation Process 2009.11 2011 2012 2015 Long term

b) Firm Construction

Stage 1: Startup

Negotiation with subway corporations

Stage 2: Business Expansion

Expend to business use (e.g. other companies, shopping malls and pubs)

Collect pressures from cars, trains, even keyboards and every aspect of daily life

Stage 3: Establish Eco-city

Intro Business Model

Market& Strategy Finance

Introduction1 Business Model2 Market& Strategies3

Pains of BeijingOur Solution

Conclusion: By converting footsteps into electricity we help to save energy as well as increasing peoples’ happiness Conclusion: We tailor our

products to satisfy different segmented market.

Conclusion: The market is a promising one. By exploiting the market, we creatively save the energy.

Conclusion: We need 3 years to break-even on the Beijing Subway projects, goo opportunity for investors.

Case: Cooperation with Beijing Subway

Public transportBusiness useHome use

Market Size

Marketing

Timetable

Our Mission

Product Lines

Finance4

Financial forecast

Potential Risk

Funding

Energy saving from each of your steps.

Intro Business Model

Market& Strategy Finance

Profit and Loss Statement Forecast

Efficiency of electricity production(wh/step) 0.0035Price of electricity($/kwh) 0.125Slab sizes(square metres) 0.09Cost of each slab($, including raw materials, workers' wages and variable overheads) 3Slab life expectation(steps) 20000000Contract sharing rate 0.5Equivalent annual advertisement fee($/square metre) 30Installation cost($/slab) 3

Key Assumptions

YearStation types No.

Slab areas for each station(square metres)

Slabs numbers for each station

Flow of peoplefor each station(persons/day)

Utilization factor of steps

Annual electricity generation for each Station(kwh)

Annual revenue from energy benefit sharing with all stations($)

Annual revenue from advertisement for all station($)

Life of slabs(years)

Year 1Big Stations 30 90 1000 80000 40% 40880 76650 81000 1.71

Year 2Small Stations 93 70 778 30000 40% 11923 69304 195300 4.57

Year after

Stations under plan for next ten years 150

Intro Business Model

Market& Strategy Finance

Profit and Loss Statement Forecast(Cont.)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Revenue form big stations 157650 157650 157650 157650 157650 157650 157650 157650 157650 157650 Revenue form small stations 264604 264604 264604 264604 264604 264604 264604 264604 264604 Cost of slabs for big stations 52560 52560 52560 52560 52560 52560 52560 52560 52560 52560 Cost of slabs for small stations 47523 47523 47523 47523 47523 47523 47523 47523 47523 Installation cost for big stations 52560 52560 52560 52560 52560 52560 52560 52560 52560 52560 Installation cost for small stations 47523 47523 47523 47523 47523 47523 47523 47523 47523

52530 222088 222088 222088 222088 222088 222088 222088 222088 222088 since year 3, 5% more gross profit of year 2 is added every year

Gross margin 52530 222088 233193 244297 255402 266506 277610 288715 299819 310924 Wages for general administration 30000 40000 40000 40000 50000 50000 50000 50000 60000 60000 Wages for dvertisement sales people 30000 40000 40000 40000 50000 50000 50000 50000 60000 60000 Property leasing 30000 33000 36300 39930 43923 48315 53147 58462 64308 70738 Equipment depreciation 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 Maintanence expenses and fixed utilities 20000 20200 20402 20606 20812 21020 21230 21443 21657 21874

Net profits -87470 58888 66491 73761 60667 67171 73233 78811 63855 68312

Income Statement for Beijing Subway Project

Since year 3, our accumulated net profits have got to covered previous losts.Small Investment But Shining Future

Intro Business Model

Market& Strategy Finance

Potential Risk & Funding

Cash Flow Status for Beijing Subway ProjectYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue form big stations 157650 157650 157650 157650 157650 157650 157650 157650 157650 157650 Revenue form small stations 264604 264604 264604 264604 264604 264604 264604 264604 264604 Cost of slabs for big stations 90000 90000 90000 90000 90000 Cost of slabs for small stations 217000 217000 Installation cost for big stations 90000 90000 90000 90000 90000 Installation cost for small stations 217000 217000 since year 3, 5% more gross profit of year 2 is added every year

Cash in from added revenue 21113 42225 63338 84451 105564 126676 147789 168902 Cash out from added slabs 30700 30700 30700 30700 30700 30700 30700 30700

Wages for general administration 30000 40000 40000 40000 50000 50000 50000 50000 60000 60000 Wages for dvertisement sales people 30000 40000 40000 40000 50000 50000 50000 50000 60000 60000 Property leasing 30000 33000 36300 39930 43923 48315 53147 58462 64308 70738 Equipment 150000 150000 Maintanence expenses and fixed utilities 20000 20200 20402 20606 20812 21020 21230 21443 21657 21874

Net operating cash flow minus net investment -282350 -144946 95965 293244 110157 156670 -291259 338326 153379 347844

Intro Business Model

Market& Strategy Finance

Potential Risk & Funding(Cont.)

Potential Risks

–The stability of our raw materials–Unstable cash flow in the first stage due to our pricing strategies and insufficient production volumn–Population growth bottleneck of the city–External competitors Wind Powered Unit Project

In Beijing Subway line

We really need your subsidies to implement such a people centric project, we only need $ 200000 subsidies for the first 5 years!

–Admitted experimentation in the tunnel by the government in 2009, which shows the strong support from them–200 billion RMB for new energy investment

Intro Business Model

Market& Strategy Finance

Introduction1 Business Model2 Market& Strategies3

Pains of BeijingOur Solution

Conclusion: By converting footsteps into electricity we help to save energy as well as increasing peoples’ happiness Conclusion: We tailor our

products to satisfy different segmented market.

Conclusion: The market is a promising one. By exploiting the market, we creatively save the energy.

Conclusion: We need 3 years to break-even on the Beijing Subway projects, good opportunity for investors.

Case: Cooperation with Beijing Subway

Public transportBusiness useHome use

Market Size

Marketing

Timetable

Our Mission

Product Lines

Finance4

Financial forecast

Potential Risk

Funding

Energy saving from each of your steps.