SXSW ECO March Wetzel Blade Presentation Rev 3 55 20150305 110am r77

We are saving the Wind Energy and Wind Turbine World

Transcript

1. SparBlade ™ 80 Meter The Future of the Wind Industry
2. Our Purpose • We will keep existing wind farms operating • Enhance Global production by 23% • Provide technology to expand wind to more sites w/ lower wind speeds • And Eliminate dependence on coal and gas for electrical generation 3/5/2015 2
3. The Problem • No blades replacements for existing Turbines. • Blade Technology cannot go further, Size and Transportation • Low wind speeds sites are left empty 3/5/2015 3
4. Business Model • Sell direct replacements for existing Turbines. • Partner with Turbine Makers on our Blade Technology to enhance size and Transportation 3/5/2015 4
5. The Magic & Technology Disruptive Space / Spar Frame Technology • 3D Printed Blade Sub-Structures / tooling • Lower capital, material, labor, transport costs • Automated Additive /Subtractive Blade Construction • Blade Condition Apps Wireless to Cloud with Big Data Analytics 3/5/2015 5
6. Wetzel Blade Technology SparBlade ™ 80 Meter 3/5/2015 6
7. Marketing and Sales • $15.8B Market • Major wind farms need solution • LOI in place • Profitable in 2017 3/5/2015 7
8. Competition Little technology change in 35 years Old School Conventional blades have: • High Capital Cost $5+M 45m blade • Low volume production unpractical • High Labor Cost w Quality Issues • High Transportation Cost • Transportation Laws limit Blades to <60m and increases overall wind turbine costs 3/5/2015 8
9. The Team Steve Barcik Amstel, CEO • Serial entrepreneur and Cleantech executive • 30 years in high tech companies • Started 6 companies, 4 exits 512-963-0222 Steve.B.Amstel@WetzelBlade.com Kyle Wetzel, CTO • Global Wind Energy Technology Innovator • Engineered 40+ blades at Wetzel Engineering • Developed 1.5MW GE turbine • 60 clients on 4 continents including Sinoma • World’s largest blade manufacturer 512-989-9194, Ext. 103 Kyle.Wetzel@WetzelEngineering.com 3/5/2015 9
10. The Team Gary Kanaby, Director of Sales • 12 years in blade mfg. and service • Launched K&C Wind, drove to $20 million • Increased MFG ES sales by 300% over 3 years 512-989-9194, Ext. 102 Gary.Kanaby@WetzelEngineering.com 3/5/2015 10 Amool A Raina, Director of Engineering • Lead Aerodynamicist • Engineered 20+ blades at Wetzel Engineering • Worked as Lead Engineer at Lighter-Than-Air Systems Laboratory at Indian Institute of Technology Bombay 512-989-9194, Ext. 106 aar@WetzelEngineering.com
11. Projections & Milestones 3/5/2015 11
12. Status & Timeline 2015 • Phase 2 Department of Energy Grant $1.15MM • Complete and Test Blade at National Renewable Energy Lab • Install Blades at NREL • Install Customer Blades 3/5/2015 12
13. Summary & Call to Action • Team, Technology and Need in Place • Market demand and pricing complete • Funding for Series A of $3MM and Non-Dilutive Funds 3/5/2015 13
14. End Backup Follows 3/5/2015 14
15. Wetzel Blade Overview Global Technology Leader in Blade Development Dr. Kyle Wetzel developed the 1.5MW GE turbine – World’s most successful turbine with 15K+ installations 1.5MW GE turbine is the Target of our first Blades • The Team Engineered 40+ blades at Wetzel Engineering • 60+ clients throughout the wind turbine world • Turbine OEMs, blade mfg., materials, optimization 3/5/2015 15
16. Wetzel Blade Technology A Complete Technology Shift Structural Design: Bonded composite frame with nonstructural aerodynamic surfaces All blades will use this technology in 10 years Longer blade lifetimes = lower operational costs Up-powered turbines = more energy capture 23+% Delivered in Sections = 97% Lower blade transportation $ Enables >5MW on-shore turbines in lower wind speeds Capital Costs reduced by 90% 3/5/2015 16
17. Wetzel Blade Technology SparBlade ™ 80 Meter 3/5/2015 17
18. Wetzel Blade Technology and Innovation Disruptive Space / Spar Frame Technology • Smarter Lighter Stronger > increased reliability • Department of Energy funding & support • $1.15MM DOE Phase Small Business Innovative Research Grant • Future testing at National Renewable Energy Lab 3/5/2015 18
19. Wetzel Blade Technology and Innovation Disruptive Space / Spar Frame Technology • Lower capital, material, labor, transport costs • 3D Printed Blade Sub-Structures / tooling • Automated Additive /Subtractive Blade Construction • Blade Condition Apps Wireless to Cloud with Big Data Analytics 3/5/2015 19
20. Conventional Blade Technology & Construction Little technology change in 35 years Old School Conventional blades have: • High Capital Cost $5+M 45m blade • Low volume production unpractical • High Labor Cost w Quality Issues • High Transportation Cost • Transportation Laws limit the size of Blades to <60m and increases overall wind turbine costs 3/5/2015 20
21. Business Model / Go To Market First as Replacement Blades to Wind Farms • Plug and Play for all turbines and systems • Focus initially on 34-47m blades for GE and other 1.5MW turbines • GE = 15,000+ with many 12+ years old • High demand and broad customer base • Low risk with ease of adoption 3/5/2015 21
22. Wind Turbine Blade Markets Replacements Blades – Sell to Owner/Operators • $800MM in Replacement Blades per year by 2019 • 38% growth 2014-2019 • LOI in place with USA largest wind Farm owner NextEra Accelerate go to market through Wind Farm owners who need a solution and have an appetite for adoption. 3/5/2015 22
23. COGS, Transportation For 34m Replacements 3/5/2015 23
24. Wind Turbine Blade Markets Second Go to Market as Blades for the Turbine OEMs Partner for Design, Build, Sell, or License to OEMs • $15 Billion in Blades per year by 2019 • 31% growth 2014-2019 Chart shows annual wind power installations continuing grow 31% 3/5/2015 24
25. Wind Turbine OEM Needs A scalable solution for Large Blades >60m • Greater structural integrity • Increased blade length • Improved manufacturability & lower costs 60+m blades that can be transported over roads • Enables new category of 4+MW on-shore turbines 3/5/2015 25
26. Technology Domination and IP Plan 4 Filed Patent Applications • Structural Member with X-Web, USPTO Application 13870723, filed 2013-04-25; PCT/US2014/035002, filed 2014-04-22. • Structural Member with Pultrusions, USPTO Application 13946122, filed 2013-07-19; PCT/US2014/043842, filed 2014-06- 24. • Insert and Method of Attaching Insert to Structure, USPTO Application 14020463, filed 2013-09-06; PCT/US2014/052624, filed 2014-08-26. 7 Patents in Process to be filed this Quarter 4 Discoveries to Be filed next quarter 3/5/2015 26
27. Technology Domination and IP Plan Blade Telemetry System Measures strain, vibration, acceleration, humidity and temperature at up 256 points in a blade structure. • Wireless to cloud for remote big data analysis • Zero maintenance Totally self-contained in the blade Provides OEMs and Fleet owners PROOF and DATA! 3/5/2015 27
28. Technology Domination and IP Plan Global Patent Filings for Wind Developing Countries 3/5/2015 28
29. The Team Steve Barcik Amstel, CEO • Serial entrepreneur and Cleantech executive • 30 years in high tech companies • Started 6 companies, 4 exits 512-963-0222 Steve.B.Amstel@WetzelBlade.com Kyle Wetzel, CTO • Global Wind Energy Technology Innovator • Engineered 40+ blades at Wetzel Engineering • Developed 1.5MW GE turbine • 60 clients on 4 continents including Sinoma • World’s largest blade manufacturer 512-989-9194, Ext. 103 Kyle.Wetzel@WetzelEngineering.com 3/5/2015 29
30. The Team Gary Kanaby, Director of Sales • 12 years in blade mfg. and service • Launched K&C Wind, drove to $20 million • Increased MFG ES sales by 300% over 3 years 512-989-9194, Ext. 102 Gary.Kanaby@WetzelEngineering.com 3/5/2015 30 Amool A Raina, Director of Engineering • Lead Aerodynamicist • Engineered 20+ blades at Wetzel Engineering • Worked as Lead Engineer at Lighter-Than-Air Systems Laboratory at Indian Institute of Technology Bombay 512-989-9194, Ext. 106 aar@WetzelEngineering.com
31. Funding Outline No Offer, Solicitation, Investment Advice or Recommendations are provided This presentation is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by the presenters or their companies. No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security. All statements are subject to safe harbor and contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. Factors that can cause our actual results to differ materially include, but are not limited to: industry issues; changes in economic conditions, consumer preferences, tax rates and laws and the regulatory environment, as well as increased competition and other risks known and unknown. Exit Strategy Sale to OEM (Slide 27) $3MM Series A Now $5.5MM Series B +12 Months Existing Funding $1.15MM SBIR $0.5MM Founder 3/5/2015 31
32. Series A Use of Funds and Milestones • 10 m and Additional Sub Structures Tested • Model Updated • Structure Optimized • SparBlade design and Implemented • 34m Alpha Structure Built and tested at UT • 12+ Patents Filed 1 or more Patents Issued • Data feed back to Models and Design • Manufacturing Process designed and built for small runs • 34 m Beta Built and Tested at NREL • Data feed back to Models and Design • 34m Blade Design Lock • 6 Blades Built • One Set 3 Blades tested and Flying at NREL • Proof Of Technology • One Set Flying and Paid for by Customer 3/5/2015 32
33. Revenue 3/5/2015 33 Thousands $
34. Summary • Revenue Generating Now / Powerhouse Team • Blade Company & Engineering Company Combined • Blade Company Owns the Large IP Portfolio • $15.8B Market Size • LOI in place for first customer blade purchases • Profitable in 2017 • Blades fully modeled and meshed • Prototype Parts built, 12m prototype in build • 34m Blade by August • ASK: Series A of $3MM and Non-Dilutive Funds 3/5/2015 34
35. Forecast Proforma 3/5/2015 35 Thousands $ Annual review ($000s) 2014 2015 2016 2017 2018 Current Assets: Total Current Assets 11 3,479 6,420 23,654 99,667 Total Non-Current Assets 0 707 3,195 6,176 10,590 Total Assets 11 4,186 9,615 29,830 110,256 Total Current Liabilities 1 175 519 3,276 5,121 Total Long Term Liabilities 0 382 1,162 1,455 1,344 Total Liabilities 1 558 1,680 4,731 6,465 Total Stockholders' Equity 10 3,629 7,935 25,099 103,792 Total Liabilities & Stockholders' Equity 11 4,186 9,615 29,830 110,256 Revenue 0 61 7,102 63,936 247,162 Cost of Sales 0 447 3,872 31,573 113,385 Gross Margin 0 (386) 3,229 32,363 133,777 Percent N/A -632% 45% 51% 54% Operating Expenses: Total Operating Expenses 0 1,652 4,208 6,701 11,445 Income from Operations 0 (2,038) (979) 25,662 122,332 Net Income 0 (2,096) (1,194) 17,164 78,693 EBITDA 0 (2,038) (979) 25,662 122,332 Cash flows from operating activities: Net income (loss) 0 (2,096) (1,194) 17,164 78,693 Net cash from operating activities (8) (1,967) (2,486) 435 66,000 Cash flows from investing activities: Net cash used in investing activities 0 (759) (2,673) (3,468) (5,178) Cash flows from financing activities: Net cash from (used in) financing activities 10 17,247 779 293 (111) Net increase (decrease) in cash 2 14,522 (4,380) (2,740) 60,711 Cash and cash equivalents at beginning of period 0 2 14,523 10,143 7,403 Cash and cash equivalents at end of period 2 14,523 10,143 7,403 68,114
36. Advisers Zsolt Rumy CEO • Innovator in Carbon Fiber Technology • Zoltek Corporation • Subsidiary of Toray Group Mitch Jacobson Director • Clean Energy Incubator • Austin Technology Incubator • University of Texas Emil Moroz AES, GE, DeWind Melissa Miller Cielo, wind power developer Trudy Forsyth past Director Wind Energy DOE 3/5/2015 36
37. Backup * AWEA and Global Wind + replacement ** One OEM only 8% + Replacements *** Bottoms up Replacements $20MM plus one next gen turbine for OEM $15.8B Annual* $1.7B Annual** $300MM Annual *** 3/5/2015 37
38. Serviceable Market Size and Growth Replacements Blades • Sell to Owner/Operators • $800MM in Replacement Blades per year by 2019 • 38% growth 2014-2019 OEM New Installations • Design Build License • $15 Billion in Blades per year by 2019 • 31% growth 2014-2019 3/5/2015 38
39. Addressable Market Size and Growth Replacements Blades • Sell to Owner/Operators • $416MM in Replacement Blades per year by 2019 • 38% growth 2014-2019 New Installations • Partner for Design Build • License to OEMs • $1.3 Billion in Blades per year by 2019 • 31% growth 2014-2019 3/5/2015 39
40. Exit Strategies • Exit to OEM • Prove Technology • Partner with OEMs to implement for next generation • Vestas, Siemens, GE, Sinoval, GoldWind, Vestas, Gamesa, Enercon • Exit to Blade Manufacturer • Prove demand by OEMs • Increase Replacement market penetration and growth • Sinoma, Tecsis, TPI, LM, MFG 3/5/2015 40
41. Turbine OEMs Ranked by Market by Year 3/5/2015 41
42. Press and Presentations • http://cleantechnica.com/2015/02/16/texas-become-us-clean-energy- leader/?utm_source=Cleantechnica+News&utm_medium=email&utm_campaign =49aba9b1f1-RSS_EMAIL_CAMPAIGN&utm_term=0_b9b83ee7eb-49aba9b1f1- 331984213 • http://www.windpowerengineering.com/design/mechanical/blades/long-blades- big-problems-modular-versions-will-transport-easily-assemble-site/ • http://www.nawindpower.com/e107_plugins/content/content.php?content.13640 • http://www.windpowerengineering.com/design/mechanical/blades/long-blades- big-problems-modular-versions-will-transport-easily-assemble-site/ • Sandia Labs Wind Blade Conference Presentation • http://www.slideshare.net/sandiaecis/2014-wind-turbine-blade-workshop-wetzel 3/5/2015 42
43. Achievements • National Renewable Energy Lab 2014 Outstanding Venture Award • Austin Technology Incubator Member /Client • Finalist 1776 Challenge Cup • Finalist University of Texas Energy Week Start Up 3/5/2015 43