2. Forward Looking Statement
This presentation contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and uncertainties
and are not guarantees of future performance of Legend Power Systems Inc.
(“the Company”). These risks and uncertainties could cause actual results
and future events to differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
statements are based on estimates and opinions of management on the
dates they are made and expressly qualified in their entirety by this notice.
The Company assumes no obligation to update forward-looking information
should circumstances or management’s estimates or opinions change.
3. Strategy Review
• Implement / prove new sales strategy
• Leverage Ontario strategy/results and
resources for new territory start up
– Testimonials / results
– Establish “anchor tenant” accounts and “pull” in
distribution channel
• Utilize region specific talent to grow territory
• Work out of distributors locations
– Provide expertise at low overheads
4. Fiscal 2011/12
Goal - Prove our sales model works
– Started last fiscal with new sales process / team
– Focus on Ontario retail and commercial office
markets
– Experienced success with constant “tweaking”
– Secured “brand” account commitments
• 100 plus location potential
• “Try and buy” philosophy – “Prove it”
– Long gap between commitment and install (why?)
5. Q1 2011/2012
• $440,650 revenue Q1 recorded
• 8 units at 7 locations + 4 harmonizers SA
• Secured bookings of $700K for Q2
• Continued to secure “brand” accounts
• Significant product / install failure (late
November)
• AVR - evaluation – testing
• Hold on “commissioning” but installs continued
• AVR failure #2 Dec 30th (unrelated issues)
• $500K raise was minimum – little “wiggle” room
6. Q2 2012/13
• January 4th – AVR problem in customer's building
• Test / Fix / Test / Fix .....
– AVR testing – Westfair
– Rental of large load bank
• Continued to install transformer and housing
– Shutdown up to 8 hours
– Booked additional date for “commissioning”
– Rev rec. and invoicing delayed until commissioning
– Cash flow dramatically affected
• Customer “experience” well managed
• Cash tight - $600k raise
8. Q3 Thoughts
• Large back log of orders
– Haven’t lost one order / customer
• Booking new install / commissioning dates
• Managing cash flow – cost containment
• Booking new commitments
9. Product
• New transformer
– New platform / the future
– Enhancements
• Product challenges
– Limited testing capabilities
• Where are we now?
• Future
10. Building Blocks
Product
• Current product focused on Canadian Market
• Need platform that is easily adaptable to
additional segments & international markets
– Appropriately size and feature set for all markets
– New transformer partner can adapt platform
• Distributor “ready” product – multi markets
11. Building Blocks
• Continue to develop Ontario market
– Highest energy rates in Canada
– Strong government rebates
– Concentrated population & business hub
• Demand for product has never been higher.
– Customer needs: save energy, money and lower GHG emissions all with 3 year ROI
– As credibility increases, so does demand.
• Target Building Profile: Commercial Buildings between 50,000 to 200,000 square
feet
– A: Property Management (office towers) and Retail
– B: Schools & Mixed use facilities (public buildings)
• Growth: Focus on markets with high electricity cost
– Top 3 regional US markets = $1.5B+ Opportunity
• New York
• New Jersey
• New England
Markets
12. …Building Blocks
• Replicate the Ontario Sales model to expand in to new markets.
• Proven low cost growth model
• Leverage existing international accounts as case studies as a potential entry
point
• Leverage partners that already have “brand / trust” in our
geo/target markets
• Electrical Contractors
• Engineering Firms
• Power Utilities
• Geo specific “targeted” communications
– Product Success/Testimonials to build credibility in new markets
• Case Studies
• Product Champion
Markets
13. Fiscal 2012/13 View
• Lost 5 months with product challenges
• Game back on
• Lots of interest and commitments (Demand)
• Product must work as planned
• Product performance = credibility = GROWTH
• Begin geographical and product expansion
14. Strategic Direction
To be the world’s leading provider of electrical
energy consumption reduction technologies
• Concentrate/focus on proving out business
strategy in Ontario
– Build out sales to $10M annually
• Expand to eastern US (10/10 Plan)
• Complete & implement ROW (distributors)
• Communicate results – enhance value
