Adamant Alternative Energy Inc. is seeking $5 million in funding to expand its solar panel and wind turbine business. It currently manufactures solar panels but plans to add wind turbines and develop hybrid products. The funding would be used to complete a new manufacturing facility in Mexico. The company projects sales to reach $160 million within 5 years and to go public once annual revenues hit $50 million. It aims to become a leader in renewable energy products for homes and small businesses.

1. rna tive
ant Alte
Adam y, I nc.
En erg
ilya rd
Alex H
BA 702 – SUMMER 2012

2. The Problem
Current durability of solar panels and wind
turbines
Warranties don’t cover effects of environment
Cost to repair damaged unit
Overall quality of solar panels and wind turbines

3. Value Proposition
Double the industry average warranty
Warranty covers the product, not just the original
customer
Most stringent environmental testing on the market
Potential relationships with large retailers
Cost effective to competitors due to parts
manufacturer relationships

4. Capital
Currently funded from capital put up by Alex Hilyard,
CEO
Seeking $5M for a 25% equity in the company
Start with solar panels, then add wind turbines and
hybrid solar/wind turbines
Equity stake expected to reach $5M in 2.5 years
Expand operations globally by establishing
manufacturing companies starting in Mexico

5. Company Description
Adamant Alternative Energy Inc. (AAE) was founded
in October 2011 by Alex Hilyard
Located currently in Houston, Texas
Our goal is to develop a product combining solar and
wind technology which will have an increased level of
consistency for energy production
BA 702 – SUMMER 2012

6. Company Description
Plan to offer 3 solar packages ranging from 17,000
watts to 38,000 watts
Through AAE market research, anticipate over 800
solar packages to be sold in North America in first
year, with total sales of $10 million expected
BA 702 – SUMMER 2012

7. Industry Analysis
Wind Turbine
Solar Panel Industry
Industry
Growth rate of 61.5% from Expected to increase 2.6%
2009 to 2010 annually from 2011 to 2016
Industry profit margin Industry profit margin
averages 5% annually averages 7.8% annually
BA 702 – SUMMER 2012

8. Solar & Wind Distribution
BA 702 – SUMMER 2012

9. Target Market
Homeowners Small Businesses
Ages 30-55 (112M people) Companies with less than
100 employees (5.75M)
Established career with
above average income (12M) Financial stable and able to
make investments in
Knowledge of technology business improvement
(8M) (1.15M)
Eco-conscious buying habits
Wanting to become more
(6M)
energy independent (750K)
BA 702 – SUMMER 2012

10. The Competition
Solar Panels Wind Turbine
Companies Companies
Panasonic/Sanyo Bergery Windpower
Sharp Hummer Wind
Suntech Southwest Windpower
Solarworld Urban Green Energy
BA 702 – SUMMER 2012

11. The Competition
Competitive
Barriers To Entry
Advantages
Quality & Durability High entry cost
Long-term customer Government regulation
relationships
Electrical grid deficiencies
Quick & effective customer
service Globalization
BA 702 – SUMMER 2012

12. Strategic Position & Risk
Analysis
To be a leader in residential & small business solar
panels and wind turbines, AAE has developed a
strategic position emphasizing:
Reliable products using the latest technology
Ongoing R&D into design efficiencies as well as new
alternate energy sources
Customer service to head-off potential problems
BA 702 – SUMMER 2012

13. Marketing Plan
Traditional Vehicles Online Vehicles
No TV or radio ads Social Media
Print ads in national SEM campaigns
magazines and trade
journals SEO optimization
Active PR campaigns E-Mail campaigns
“Capturing Energy from
Nature”
BA 702 – SUMMER 2012

14. Operations Plan
Corporate headquarters and distribution facility in
Houston Texas
Planned 60 employees in first year
Production facility to run at 95% capacity
JIT and FIFO used in operations
12 total retailers used for distribution
BA 702 – SUMMER 2012

15. Operations Plan
Time-Ef fective Cost-Ef fective
Programs Programs
Production line Global expansion (300k
implementation savings)
Additional surge in Development of test
employees to meet demand procedures (10k savings)
Centrally located
production facility
BA 702 – SUMMER 2012

16. Management & Organization
BA 702 – SUMMER 2012

17. Social Responsibility &
Sustainability
Committed to being a positive influence in the
community and the world in which it operates
AAE feels it has a responsibility to do the right thing
and think about every one of its stakeholders
Supports local sports teams and Habit for Humanity
AAE is a carbon neutral company and uses its own
products to reduce its footprint
BA 702 – SUMMER 2012

18. Development, Milestones & Exit
Plan
Commitment to reinvest 12% of earnings back in to R&D
Annual sales are projected to increase to $160 million by
2016
AAE is seeking $5 million for the completion of their wind
turbine manufacturing facility in Mexico
Goal to reach total market share of approximately 1% in
small wind and .75% in solar.
BA 702 – SUMMER 2012

19. Development, Milestones & Exit
Plan
AAE has the authority to issue up to 1 million shares
of common stock
Upon reaching $50 million in revenues annually AAE
will go public with the shares
AAE expects to reach this milestone within 3.5 years
BA 702 – SUMMER 2012

20. Income Statement
2013 2014 2015 2016 2017
Gross $6,000,000 $7,972,400 $20,000,000 $42,000,000 $75,000,000
Sales
Net Sales $5,349,400 $7,133,960 $17,900,000 $37,675,000 $67,365,000
COGS $1,069,880 $1,212,773 $2,685,000 $5,651,250 $10,104,750
Gross $4,279,520 $5,921,187 $15,215,000 $32,023,750 $57,260,250
Profit
Total $5,178,500 $6,439,738 $14,898,000 $20,861,000 $30,467,000
Expenses
Net Profit ($1,033,827) ($440,769) $269,450 $9,488,338 $22,774,263
BA 702 – SUMMER 2012

21. Cash Flow Summary
2014 2015 2016 2017
Cash from Sales $7,972,400 $20,000,000 $42,000,000 $75,000,000
Cash from $5,961,200 $792,000 $1,210,000 $1,515,000
Financing
Cash $8,710,678 $19,869,500 $32,205,500 $46,923,500
Disbursements
Net Cash Flow $5,223,222 $922,500 $11,004,500 $29,591,500
Ending Cash $341,734 $356,250 $1,919,750 $6,861,750
Balance
BA 702 – SUMMER 2012

22. Balance Sheet Summary
2014 2015 2016 2017
Current Assets $2,206,734 $2,406,250 $5,069,750 $14,161,750
Fixed Assets $6,028,000 $6,573,750 $7,532,500 $9,032,500
Current $259,734 $630,000 $900,000 $1,360,000
Liabilities
Long-Term $275,000 $350,000 $402,250 $600,250
Liabilities
Net Worth $7,700,000 $8,000,000 $11,300,000 $21,234,000
BA 702 – SUMMER 2012

23. The Financials
Break Even Uses of Funds
2014: $5,287,477 in sales Leasehold Improvements
(15%)
2015: $11,901,214 in sales Equipment & Furniture
(20%)
Investor Payback: 1Q 2016 Purchase of Inventory
(20%)
Staff Expansion (25%)
Marketing Expansion (15%)
Business Expansion (5%)
BA 702 – SUMMER 2012

24. Conclusion
Asking for $5 million from investors
Investor equity expected to match original investment in
less than 3.5 years
Revenues anticipated to increase by 2000% in 5 years
from $8 million to $160 million.
Concentration on quality products and
customer/community service
Global expansion to Mexico and Spain in the next 3 years
BA 702 – SUMMER 2012

25. Questions?
BA 702 – SUMMER 2012