Atlas Solar TechnologiesA Customer Committed Company

Andrew Wright, Alexis Lusitana-Ruiz, Martin Etcheverry, and Nicholas Koutoufidis

Mission Statement:To create an efficient process for producing quality products and equipment in support of our clients, and to continually improve customer service to be the highest in the industry.

Contractor Committed.

HistoryYear Founded: 1980Founders: James Wright and Brian Quinn

Services• With an emphasis on concrete

related products, Atlas Construction Supply, Inc. is a manufacturer and supplier supportive to General Contractors, Concrete Sub-Contractors, and other contractors of various disciplines.

• Design, engineering, sales and rentals of forming and shoring systems.

• Producer of Atlas Tech construction chemicals and restoration products

• Supplier of concrete accessories, specialty forming boards, rebar supports, tilt-up and precast accessories

Locations:San Diego, Corporate HeadquartersLas VegasLos AngelesDenverPhoenixMexicoFuture Locations:HawaiiSan Francisco

Joint Venture with Atlas

Wilshire Grand LA

1000

0 Sa

nta

Mon

ica

Hilton Grand Islander HI Lane Field SD

Sunset & Bronson LA

9th & Broadway SDTransbay Block 6 SF

Potential Global Business Opportunities Growing middle class & govt investment w/ lower income families

Increased awareness of solar

Atlas Solar Tech into the Mexican market

Manufacture in U.S.

More consumer confidence

Sell to Costco, Home Depot, etc.

Contractors & Developers

Government

Social & Cultural Environment 125 million+ population

1.2% annual growth rate

93% speak Spanish & 76% Roman Catholic

Matriarchal society

Church & family intertwined

Religious holidays respected at work

High value on hierarchy and structure in business and family matters

Personal relationships over business contacts

Potential Competitors eSun Energy

Over a decade of experience & first movers Mexico Solar

Experience & offers financial assistance International Strategy:

Greater value in installation services, excellence in customer service & higher quality products made in USA

Joint venture with Atlas Construction Supply 30 years experience in Mexico

Current Economic Picture Top 3 exports: Motor vehicles, parts, & electrical machinery

Top Industries: Food & beverages, tobacco, chemicals, iron & steel

Inflation: 3.1%

GDP, PPP: $2,014 billion (2013)

GDP growth rate: 1.7%

Interest rate: 3%

Unemployment: 4.45%

Absolute advantage

Comparative advantages...

Midterm elections happened early June, there is a new type of Governer in Nuevo Leon- farming territory – “peoples governor” claiming this is the beginning of the second Mexican revolution.

Majority still like President Enrique Pena Nieto- Institutional Revolutionary Party (PRI)

a. The PRI (Nieto) party demonstrated a commitment to working together to push economic reforms through- telecoms, energy, investments.

i. President Nieto has an “ambitious reform agenda” including overhauling the taxing systems, cut gov’t spending, focus on liberalization of economic sectors such as energy and telecommunications.

Weakening currency is making imports more expensive.32% of government revenue stems from oil exportsMexico economy expected to grow 3.3% in 2015As reforms get pushed through by government – mexico should see a steady boost

in economy.Facing severe security problems, political unrestMexico is seen as a “commodities and manufacturing giant”

b. The price of commodities is fallingMembership with NAFTA – positive trade balance

Politics & Legalities of Mexico

Trade Barriers & FDIIntellectual Property:

● Law designed to protect inventions - basically stating that whoever creates this can use it however they see fit. A person or corporation can be given a patent.

● Industrial designs and drawings are two different things in Mexican law.● No longer need a Mexican judge to validate conflicts● These do not apply to foreign investments in Mexico.

Import Restrictions:○ Tariff classification○ Customs law○ Customs valuation○ Rates (0-35%)○ Special rates and customs associations (NAFTA)○ Other chargers (disposal)

Foreign Direct Investment:Mexico forms a bridge between north and latin America. Mexico has an extensive source of

natural resources allowing for development of all types of industries at a competitive price.

Mexico is open to FDISkilled labor force, low cost of laborPositive structural reforms have been made during current presidential termMexico is 8th on worlds tourist destinations.ProMexico was founded in 2007 to support FDI

Economic Conditions

Rates Mexico United StatesInflation 2.88% 0%

Currency $1 = 15.63 Pesos $1 = 15.63 Pesos

Interest 3% 0.25%

Unemployment 5.22% 4.8%

● Falling oil prices and difficult global economic environment

● Peso fell by 13.1% during the course of 2014● 2015 Q2- business activity slowly gaining traction

○ Manufacturing sector rose○ Consumer confidence showed mild improvement

from Q1

Proposed Location

For Sale: $1.1 Million

Size: 20,000 Square FeetDetails: Able to handle high use of energy and has four docking stations

7651 Saint Andrews Avenue. San Diego, CA

10 MW Cell and Module Facility

Sources of Financing

● Existing Capital/ Atlas Existing Credit Lines● Sunshot Initiative

○ PV incubator program- supports promising commercial manu processes

○ PV supply chain project- provides $20.3 million in funds○ Advanced Solar Photovoltaic Manu. Initiative- up to $112.5

million over five years○ SUNPATH- supports industrial-scale domestic solar

manufacturing● The investment tax credit (ITC) also provides financial incentives for

domestic solar power production● Section 1603 Treasury Cash Grant Program● ARPA-E- provides funding for private sector alternative energy

production (funded 285 projects)● Capital One Bank- Has been investing heavily in Solar Energy

Companies over the past couple of years

Global Management Information System

Information Needed● Mexico’s energy outlook● Mexican economy● Cost of raw material● California and U.S. legislative changes● Make Atlas Technology GP projections from sales team

Examples of Reports and Data Needed for Decisions● Organization for Economic Cooperation and Development Surveys● Greentech Media Research Institute● Solar Energy Industries Association● Mexico’s National Development Plan Report 2013-2018● BP Outlook 2035● World Energy Outlook● The Association of Mexico’s Energy Forecasts

Resources Needed● Utilize existing market and financial analysts at Atlas Technologies, Inc.● Use our longstanding business relationships already established in

Mexico

Human ResourcesAnnual Salary Per

Employee (U.S. Average)

Total Annual Cost

Production Unit

Technicians (14) $28k 392k

Supervisors (2) $41k 82k

Production engineers (2) $75k 150k

Administrative Unit

Director of Construction Management (1)

150k 150k

Human Resources Executive (1)

85k 85k

Accountant (1) 55k 55k

Administrative Assistant (1)

35k 35k

Total 949k

Staffing Plans● Geocentric Approach● Utilize the Center for Sustainable Energy (CSE) to find experts in the field● Focus on hiring employees from California

Performance Appraisal Review Guidelines1. Have employee complete self evaluation2. Evaluate three or four major areas of employee’s responsibility

(i.e. accuracy and timeliness)3. Evaluate skills and behavior performance competency4. Overall Assessment of performance5. Development and growth plan6. Future goals and Expectations

International Financial and Business Risks

Currency and Exchange Rates• Transaction Exposure: Mexican Peso vs US

Dollar• Peso follows US economy• European investments can allow Atlas to be

successful when US economy is weak

Consumer Economic Disparity• Very small middle class• Either high class or low class• High class values US products and trends

Importing Products into Mexico• Potential for delays at international border• Temporary vs definitive importing rates into

Mexico

Product ConceptSolar Panels• Smart Solar Panels that have embedded

electronics into PV modules• Measurement of performance along with

power optimizers• Sold direct to clients as opposed to rental

Product Branding• Green Building attributes with LEED and

GreenSpec• Follow Atlas brand which promotes superior

customer service and high quality products

Target Market & Promotional Activities

Target Market• Middle to high-end consumers• Architects, Contractors and Developers• Government entities such as municipalities,

Federal and State programs and facilities• Hotels and Tourism Industry

Consumers:

Tourism:

Contractors/Government:

Global Distribution StrategyU.S. to Mexico• Solar panels will be assembled in US at

Atlas facilities in San Diego and Phoenix• Trucking in to Mexico will be facilitated

Mexico Infrastructure:• Extensive well-maintained roads and

highways in to Central Mexico• High-tech communication systems are in

place and used daily • Atlas Solar Tech will have distribution

centers in Mexico City and Monterrey

Mexican Cultural, Political and Legal Climate:• Reform in energy sector has opened up

Mexican government• The Mexican culture has created awareness

of sustainability• Extensive court system at state and federal

levels• Detailed contracts are protected, but

subject to levels of corruption

References

Santander. "Foreign Investment in Mexico 2015." Mexico: ForeignInvestment. Santander Trade Portal, 1 June 2015. Web. 15 June 2015.

PWC. "Doing Business - Doing Business in Mexico 2015." DoingBUSINESS - Doing Business in Mexico 2015. PWC, 25 Feb. 2015. Web. 29 June 2015.

Forbes. "How Will Mexico's Economy Perform in 2015?" Forbes. Forbes Magazine, 4 May 2015. Web. 29 June 2015.

"LoopNet - 7651 Saint Andrews Ave, Distribution Warehouse, 7651 Saint Andrews Ave, San Diego, CA." LoopNet - 7651 Saint Andrews Ave, DistributionWAREHOUSE, 7651 Saint Andrews Ave, San Diego, CA. Loopnet, 25 May 2015. Web. 29 June 2015.

"United States-Mexico Chamber of Commerce." United States-Mexico Chamber of Commerce. N.p., n.d. Web. 30 June 2015.