united wind company overview - cleantech...
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United Wind – Company Overview
Customer Problem Farmers electricity costs account for up to 10% of their total OpEx
7.2
10.5
Average U.S. Commercial Price/kWh of Electricity, Monthly 2001-2016 Source: U.S. Energy Information Administration Website/Electricity/Electricity Data Browser
13.0
16.6
Average Price/Cwt (hundredweight) of Milk Monthly 2001-2016 Source: University of Wisconsin Madison Agriculture and Applied Economics Website/Dairy Data
Average Cents/LB of Pork Monthly 2001-2016 Source: Index Mundi Website/Commodities/Pork
48.6 46.6
2001 2016
2
Pork
Electricity
Milk
Our Solution WindLease™ provides farmers with long term electricity price stability, at below market rate prices
2.6%
1.9%
Average U.S. Commercial Electricity Escalation Rate 2001-2016 Source: U.S. Energy Information Administration Website/Electricity/Electricity Data Browser
10%
Discount to current
electricity cost
WindLease Fixed escalation rate for
20 years
2001 2016
3
Average utility commercial escalation
rate for 20 years
21%
Projected discount to future
electricity cost
What We Deliver The only seamless, branded, low cost distributed wind energy solution available in the U.S. today
End-to-end distributed wind energy solution
Installation Monitoring & Maintenance Finance Wind Analysis Origination
United Wind online customer portal United Wind 50kW turbine at Double A Vineyards, NY
4
Who Can Benefit There are 2.1 million farms in the U.S., near term 100,000 can benefit from WindLease
Farm eligibility is determined based on property size, mesoscale wind resource, farm revenue, utility tariffs, and other data
Source: Company market model
2.1m
Total number of farms in the U.S.
170 Projects under contract (Placed in Service – in Dev.)
$200 billion total opportunity
5
Total value of $35m in Revenue, installed capacity of 9.1MW 10,000 farms qualify for current offer (10%/1.9%)
Total addressable market $1.3b, potential capacity of 250MW
100,000 farms in Class III wind, will qualify over 2018-2022
Total addressable market $10b, potential capacity of 2,500MW
U.S. Dept. of
Energy 2016
Report – “49.5m
U.S. properties
can benefit from
distributed wind”
Where is the Target Market Initially, Midwestern, wind rich farms with above average electricity prices
Midwest counties by number of eligible farms for 25kW turbines
150+
75-150
1-75
6
Farm eligibility is determined based on property size, mesoscale wind resource, farm revenue, utility tariffs, and other data
Source: Company market model
How Do We Make Money Upfront and multiple long term revenue streams for 10kW, 25kW, 100kW, & 900kW turbines
Average unit economics
for a 25kW project
20% 20years
$23k average developer margin per project $33k average nominal recurring revenue from
O&M fees, asset management fees, and lease
payments
$92k
COGS
$23k
Gross Margin
$33k
Retained Value¹
7
Source: Company corporate model
¹Retained value is calculated as the nominal net managing member
interests due to UW assuming a year 7 securitization at a 5% DR
²Customer acquisition cost (CAC) is an average of 2017-2019 and
includes all marketing, sales team salaries and commissions
³OpEx is an average of 2017-2019 and includes all operating
expenses excluding CAC
$3.9k
Customer Acquisition Cost²
$16.5k³
OpEx
Upfront Margin Recurring Margin
Our Competitive Advantages We are the leading distributed wind developer in the U.S., and expect to remain the leader
Only Turn-Key Offering on Market Wind Analytics IP First to Market Only Branded End-to-End Experience
8
And Our Secret Weapon…
Notable Press Quotes
9
“..Wind systems… are challenging
the traditional model for electric
utilities.” - Bill Loveless
March 8, 2016
“United Wind believed it could
finally break open the stagnant
distributed wind market. So far,
that thesis has borne out.” - Stephen Lacey
January 6, 2016
“Customers typically see savings of
at least 10 percent over power
provided by a public utility and.. save
even more if they prepay all or part
of their contract.” - Diane Cardwell
December 18, 2015
“Dairy farms and hog producers use
significant amounts of electricity..
tight commodity prices..
affecting farm revenue.. turbines
would cut their costs.” - Morgan
Chilson
March 12, 2016
“The rise of distributed PV has
helped ignite the US solar market..
Russell Tencer believes the same
phenomenon is coming to
wind, and he's convincing big
investors, including Norway's Statoil,
that he's right.”
RECHARGE
May 31, 2016
“Wind Power Spreads Through Turbines for Lease” “United Wind Closes $200m for Third Party Leases” “Wind Power Prospects get a Norwegian Nudge”
“United Wind Intros 3rd Party Leasing to Market” “Total Energy Ventures Takes Stake in United Wind”
“United Wind is the leading
provider of distributed wind
energy solutions.. providing
distributed wind energy leasing
solutions to rural businesses and
homes across the country.” - Joshua
Hill
“United Wind Garners Further Financing.. for Sector” July 13, 2016
Customers Explain The Value
“For us, there were a lot of reasons,
(to lease a wind turbine), it gives us a
set cost, it fixes us in at a certain rate
going forward. It eliminates the
risk of higher energy bills”
10
Doody Farms
Heritage Dairy
“The leasing allowed us to take
advantage of the savings without
having to put in all the upfront
capital.”
Dennis Rak, Owner
Ben Gehl, Owner
“The [utility] rates just seem to
keep going up, they don’t seem to
go the other way.”
Rich Doody, Partner
Erick Farmer, Owner
“United Wind made it easy for
me to switch to wind energy. I
couldn’t be happier with my
decision, my utility bill is now close
to zero every month.”
“UW made it easy, as a business
owner, to benefit from wind. As a UW
customer, I was able to "go green"
in a way that not only helps
future generations, but also my
business' bottom line. Kendra Burnap, Owner
“Leasing a turbine allowed us to add
100 animals and three new buildings,
and have no increase in our bills. With
customers more conscious than ever
of where their food is coming from,
using wind energy sets us apart
from our competitors”
Lee Dobbins, Owner