greenergetic Group

EcoSummit London, 07 Oct. 2014

Christian Hodgson, VP Sales

Developments in the energy sector: transition from commodity to non-commodity  

•  Es$mate  for  2020:    30  %  of  value  created  in  non-­‐commodity  segment  

•  Necessary  development  due  to  decline  in  EBITDA:      (up  to  50  %  decline  in  produc$on,  30  %  decline  in  grid  revenue)  

•  Largest  profit-­‐pool:  contrac$ng  of  decentralized  residen$al  applica$ons  •  Energy  provider  becomes  „care  taker“    

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Developments in the energy sector: transition from commodity to non-commodity  

•  Es$mate  for  2020:    30  %  of  value  created  in  non-­‐commodity  segment  

•  Necessary  development  due  to  decline  in  EBITDA:      (up  to  50  %  decline  in  produc$on,  30  %  decline  in  grid  revenue)  

•  Largest  profit-­‐pool:  contrac$ng  of  decentralized  residen$al  applica$ons  •  Energy  provider  becomes  „care  taker“    

     focus  on  customer  reten$on  through  innova$on  and  new  services    

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Developments in the energy sector: Challenges and constraints

Success  through:    a)  Growth  b)  Op$miza$on    c)  Innova2on:  

•  Developing  new,  decentralized  business  models  is  key  •  New  products  mi$gate  core  business,  but  face  high  compe$$on,    

 high  maintenance,  and  small  challenging  scalability  •  New  business  models  will  be  successful  if:    

–  scalable  –  high  margin  –  integrated  in  core  processes  

       

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Developments in the energy sector: Challenges and constraints

Success  through:    a)  Growth  b)  Op$miza$on    c)  Innova2on:  

•  Developing  new,  decentralized  business  models  is  key  •  New  products  mi$gate  core  business,  but  face  high  compe$$on,    

 high  maintenance,  and  small  challenging  scalability  •  New  business  models  will  be  successful  if:    

–  scalable  –  high  margin  –  integrated  in  core  processes  

PV  is  the  ideal  market  entry  into  ‘energy  as  a  service’:    easy  to  understand,  low  maintenance,  posi$ve  image  

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market potential for residential PV in Germany

Potential customers

Single family homes

Buildings suitable for PV

27 bn Euro market in Germany

Market size of residential PV in Germany

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Installations < 10 kWp With 5 kWp as the average system size, cumulated potential = 18 GWp

14 Mio.

7 Mio.

3,6 Mio.

=> online one stop shop for residential / small commercial energy installations. => homeowners plan and purchase residential PV, electricity storage & smart energy solutions fast & easy. => greenergetic sublicenses its software as a service to white label customers (utilities), leveraging access to customers dramatically. => all underlying processes as well as marketing and sales support, full support in pre/aftersales, logistics and innovative financing.

greenergetic  

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The greenergetic platform:  One planing tool, full process integration

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Executive summary greenergetic GmbH  

Founded March 2012 | Employees: 28 FTE + 4 PTE | USP: Process and Product excellence Business model

•  BtoC portal (one stop-shop) for PV and renewable energy solutions (residential and light commercial) •  Online planning, purchasing and financing the easiest possible way •  Process driven backend and frontend - covering information, sales, logistics, fulfilment and installer processes

Team •  Top notch management team of industry professionals, over 35 years of industry experience •  Experienced advisory board and VCs on board, succesful series A and series B funding with renowned

investors

Market •  residential PV is THE growth market worldwide - in Germany since April 2012 highest relevance •  Utilities and others seek to participate in residential PV market •  First steps taken in the Netherlands and South America (Panama)

Marketing and sales strategy : •  white label licensees (utilities) bring scalability of business at little cost •  Expansion of product portfolio (energy storage, smart home, heat pumps) •  Recurring returns through separate SPV that owns and operates PV systems while leasing to homeowner •  Potential for end customer branding

The Management: experienced business professionals

Florian Meyer-Delpho, CEO 10 years of entrepreneurial experience in the solar sector Co-founder & CSO pvXchange international N.V ( 2005-2011); Trading volume 380 mio. EUR in 2010 CEO Intelli Solar GmbH since 2006 (EPC business) Kai Malkwitz, CFO, CMO 8 years of experience in the PV-sector & over 15 years of management experience Entrepeneur since 1995 Founder pvXchange GmbH in 2004, CEO until 2012 Management of pvXchange VC round about 5 mio. EUR in 2011 Michèl Dichter, COO 5 years of experience in contracting and in the PV-sector Setup of contracting businesses (today: Kofler Energies) Project development in the PV-sector

The advisory board and VC partners consists of seasoned solarexperts

Advisory board

Dirk J. Lamottke, advisory board (lawyer) GM at Juwi Solar India, Business Management Juwi worldwide, legal Counsel Gehrlicher AG 10 y+ law firm specialized in online and licensing

Arne Wittmer, Key Accounts and online marketing, usability Founder/management „Computerhouseberlin“ Funding of PV-Projects

VC Backing

e Capital / Seedfonds Bielefeld Ostwestfalen Leading Cleantech VC in Germany (Leadinvestor)

Howaldt Energies, (Kai Howaldt, advisory board)

Siemens AG ; 13 years partner with Roland Berger, Founder and CEO of Howaldt Energies, co-investor

More than 40 licensees contracted (19 online per July 2014) representing more than 3 mio. customers and more than 30 bn. turnover

greenergetic group – driver of innovation through leasing SPV:

Utility AB Energie Service GmbH & Co. KG

utility XY Energie Service GmbH & Co. KG

100%

greenergetic GmbH

greenergetic Energie Service GmbH & Co. KG

(asset SPV)

-51% greenergetic - 51% greenergetic Energie Service Energie Service - 49% utility XY - 49% utility AB

Future e.g.

greenergetic Energie Service

Management GmbH

Komplementärin

Kommanditistin

100%

Outperforming market Strong growth without significant marketing efforts (yet)

Sold installations so far [kWp]

Access to Homeowners through utilities [Mio]

0

20

40

60

80

100

Utility licensee contracts in negotiation under contract

90 ~50

> 1500

Visits & logged in planning [Tsd]

90 5.6

3,5

90

0

1000

0

6

0

Our success is basis for next growth period: Maintain market domination in our segment

Achievements so far: •  sales of PV-systems tripled since April (5-10 systems sold per week) •  Overall sales (pv and IT setup) doubled since march 2014 (200 000 / m) •  Joint venture with 2 leading utilities each placing 150.000 EUR

investment into the next generation portal (energy services portal) •  First proven success in marketing support for utilities

(Projektaktenmailing, Home stories etc.) •  First sublicensing in international markets (Sunergetic.nl) online and

first sales happening, RWE Hrvatska (Croatia) - cooperation just began •  Number of accesible households through licensees: today: 3,2 mio

(April 2014: 2.07 mio.) •  Consolida2on  of  staff  in  Bielefeld    (from  8  )Jan  2014)  to  18  FTE  in  Bielefeld)  •  Cooperation with renowned strategy consultant Oliver Wyman and

Rhenag AG in promotion and implementation •  Launch of light commercial PV-Portal (Sept 2014) and more

greenergetic today (July 2014) Results 6 months after series b funding: utilities love it - end customers buy it

Real- ytd Forecast 2014

•  Turnover    app.  1  mio.  •  U$li$es:  40    •  Household  coverage:    3,15  mio  (2-­‐  3.500  visits/  week    with  no    marke$ng  (yet)  

•  Sold  installa$ons:  90  •  Series  c  funding:          app.  700.000  (reach  un$l    2015)  

•  90  u$li$es    in    nego$a$on    &  mee$ng  

•  Turnover:    2,5  mio.  •  Ebit  –  700  t  •  U$li$es:    65  -­‐  80  •  Household  coverage:    4,5-­‐6  mio.  

•  Sold  installa$ons:  250  •  EDL  Joint  developm.  With  two  renowned  u$lity  partners    

Market  leader  in  online  based,  residen2al  sales  of  energy  services  (residen2al  PV,  heat  pumps,  baDeries  etc.)  including  all  underlying  processes  •  expand  growth  by  increasing  product  range.  (storage,  smart-­‐home,  heat-­‐pumps)  •  become  the  leading  white  label  B2C  portal  for  u$li$es  in  Europe  •  regionally  expand  in  markets  where  there  is  a  vital  u$lity  landscape  and  provide  

our  service  to  u$li$es  all  over  the  world.  Our  main  value  drivers  are:    •   Access  to  u$li$es  (white  label  customers)  and  their  vast  end-­‐customer  base  •     Sales  channel  for  innova$ve  non-­‐commodity  products  which  complement  u$lity‘s                        exis$ng  commodity  products      •   Full  command  about  processes,  significant  part  of  value  chain  and  customer                communica$on.    

greenergetic Mission 2016: The leading partner for utilities in online based sales of energy services/solutions

Greenergetic GmbH Meisenstr. 96 D-33607 Bielefeld +49 (172) 706-2972 c.hodgson@greenergetic.de www.greenergetic.de

greenergetic power your home.

Backup

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Privat-­‐kunde  

(Klein-­‐)  Gewerbekunde   Industriekunde   Freifläche  

EEG-­‐Einspeisevergütung   <0,13€   <0,11€   <0,11€   <0,085€  

Strompreis   0,28€   0,22€   0,16€   -­‐  

Sons$ge  Abgaben  (Eigenverbrauchsumlage)  

-­‐   >0,02€   >0,02€   -­‐  

Ertrag  der  Anlage  je  kWp  (850  kWh/  Eigenverbrauch  +  EEG  

Verg)  

77,35€  71,40€  =148,75€  

28,05€  119€  

=147,05€  

28,05€  83,30€  =111,35€  

72,25€  

Belastete  Eigenverbrauchsquote   -­‐   70  %   70%   -­‐  

max.  Preis  der  Anlage    (10%  bruoocashrendite)   1487€   1470,50€   1113,50€   722,50€  

Handelsüblicher  Realisierungspreis  

1550  €/kWp   1400  €/  kWp   1250  €  /  kWp   950  €  /  

kWp  

Chancen im neuen EEG – Kundensegmente und Wettbewerbssituation

SPV PV-Leasing – Home-owner acts as EEG-operator whereas GES owns the pv-system

Home-­‐owner  

 greenerge$c  Energie  

Service    

Network-­‐operator/U$lity  

Reduced electricity bill

EEG-payment

Lease-contract pv Service-contract

Lease contract roof

 greenerge$c  GmbH  

 

EPC-Contract

Integrated lease payment