Power2Switch Investor Pitch

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					                    Power2Switch, LLC




http://www.power2switch.com
Power2Switch: Expedia of Utility Switching
   SMALL BUSINESSES              ELECTRICITY SUPPLIERS
   Compare electricity             manage and analyze
supplier prices and manage        small business profile
     electricity usage               and usage data




                             2
Our Portal Saves Money for Small Businesses




Ice Cream Shop in   Power2Switch                  Proprietary Power2Switch
Lakeview            automatically retrieves       algorithms help customers
- Monthly Usage     lower rates from              understand:
12,030 kWh          alternative suppliers. Best   - load profile adjustments
- Current ComEd     rate is $0.066/kWh.           - billing reconciliation
rate: $0.082/kWh    Annual Savings = $2,304       - peer business
                                                    assessment

                                  3
Our Portal Saves Money for Suppliers




Customers switch to an   Proprietary Power2Switch algorithms aggregate
alternative supplier     customer profile and usage data to enable pricing,
through Power2Switch     billing and forecasting for electricity suppliers




                                 4
Clear Value Proposition

     Small Businesses                    Electricity Suppliers

- Free service                       - Lower client acquisition costs

-15-20% savings on electricity       - Enable more accurate
 bill (~$3600/yr)                      pricing, billing and forecasting

- Switching process reduced          - Increased exposure within
  from weeks to minutes                small business segment

- Enable better management           - Better positioning for smart
  of energy usage                    meter rollout
                                 5
Simple and Sustainable Revenue Model

                   SMALL BUSINESSES
                          $0.002/kWh                Monthly
     Client
                            paid by              Revenue Over
    Switches
                            supplier              contract life



                  Retail Electricity Suppliers
                          $4/Customer/
   Relationship                                   Minimum 1-
   Commences             Month for data          year Contracts
                         management


                             6
 Target Market - IL Small Businesses/Suppliers
  Illinois Opportunity

  Small Business Customers
                               Small
                             Businesses         Unswitched
   Number                      264,625           227,557
   kW-hrs                         39B               33B
   Commission                   $78M               $66M

  Electric Suppliers
                                  Electric Suppliers
   Number                                  18
   Customers/RES                         2,058
   Data Management                       $13M

Source:
US Energy Information Administration - http://www.eia.doe.gov/
US Census Bureau - http://factfinder.census.gov         7
 $3.2B Market Opportunity

  16 Deregulated Regions
        1.6T kW-hrs
              Annual Consumption
              Annual Growth 2%
        $3.2B Total Market
              Based Solely on Commission
               Opportunity


  35 States w/ Potential for
   Deregulation
Source:
US Energy Information Administration - http://www.eia.doe.gov/
                                                   8
Power2Switch Delivers on Customer Value

                  Online     Supplier       Customer   Cost to   Process    Data
                Completion   Partners         Size     Switch     Time     Analysis

Power2Switch                   8            Small     Free       Mins       Yes

  Electricity
 Consultants
                    --          1            Large     $$$$      2 Weeks     No

  EnerNoc           --          --           Large       --         --       Yes

WhiteFence          --          1       Residential    Free      3 days      No

SaveOnEnergy        --          6             All       $$       3 days      No



                                        9
Proof of Concept -> Data Management Rollout

                      Low Cost PR
                      Selective Direct Sales
                      Partner w/ Chambers of
 Proof of Concept      Commerce
       2010           Partner w/ Property Managers
                      Attend Industry Trade Shows
                      Online Marketing/SEO


                      Complete  build out of data
                      management/analysis
                      infrastructure
  Phase II – Data
                      Expand supplier relationships
Management Rollout
                      Expand sales force to increase
     (2011)
                      market share
                      Expand Marketing efforts to
                       traditional marketing channels



                                         10
Financial Projections




Customers    1070      4286         13996    32849     72022
 Revenue    $579K     $1.94M        $5.75M   $11.4M    $17.8M
Expenses    $948K     $1.24M        $2.55M   $3.29M    $4.14M
  Income    ($370K)   $453K         $2.08M   $5.28 M   $8.87M

                               11
The Right Team to Execute
                    • Barking Power Station, Energy Quote UK
    Seyi Fabode
                    • Experience in Operations & Utility Switching

                    • Co-Owner & VP Sales XWires (recently acquired)
  Carl Hirschman
                    • Experienced B2B Sales Specialist

                    • Accenture, Orchestria (Acquired in 2009)
    Phil Nevels
                    • Experience in Start-Up Business Development & Strategy

                    • Chief Technology Officer at Yield Technology, Inc. and Senior
   Gary Dollinger
                      Developer/Analyst at AMLI Residential

 Advisors
    Jon Morris      • CEO Rise Interactive - Online Marketing Corporation

   Todd Hillman
                    • Executive Director Midwest Independent Transmission Systems

                    • Professor of Ops Management Booth School of Business
  Prof John Birge
                    • Customer Decision research: Electric Power Institute

                                           12
Power2Switch is Well Positioned for Success
Additional inputs that will help us get there:




               $150,000 in         $450,000 in Super
                                    Angel funding (8
               seed stage            months after
                 funding              seed stage)



   - Product development
   - Sales force and web marketing ramp up
                             13
                               Questions?




Contact Us:
Seyi.Fabode@Power2Switch.com
Phil.Nevels@Power2Switch.com
                               Appendix




Contact Us:
Seyi.Fabode@Power2Switch.com
Phil.Nevels@Power2Switch.com
The secret sauce!

                         - Billing and reconciliation

                         - Tariff/Load profile Analysis
                             e.g. Analysis of cost savings from
                             changes (retrofits, demand
                             response etc) to underlying load
                             profiles

                         - Forecasting and Predictive
                         Analytics

                         - Environmental monitoring




                    16
Electricity Industry Ecosystem


                               14%
                             Switched
                             Retail
   Distribution and
                              $2.2M
    Transmission




        Consumers


                      17
Electricity Industry Ecosystem




                    18
Power2Switch
Income Statement (Illinois Only)

                                       Year 1       Year 2      Year 3        Year 4         Year 5
Operational
  Total Revenue                    $ 579,902 $ 1,941,168        5,759,489     11,428,067     17,794,662
  COGS                             $ 349,692 $ 376,523            909,821      1,108,627      1,332,995
  Gross profit                     $ 230,210 $ 1,564,645        4,849,668     10,319,440     16,461,668

Operating expenses
Manager Salaries                   $        -     $ 150,000       154,500        159,135        163,909
Developer Expense                  $    120,000   $ 123,600       127,308        131,127        135,061
Sales and Marketing                $    443,820   $ 473,564     1,012,907      1,214,805      1,442,359
  Normalized G&A           6.0%    $     34,794   $ 116,470       345,569        685,684      1,067,680
Total Operating Expenses           $    598,614   $ 863,634     1,640,285      2,190,752      2,809,009
Total Expenses                     $    948,306   $ 1,240,157   2,550,106      3,299,378      4,142,004

EBITDA                             $ (368,404) $ 701,011        3,209,383      8,128,688     13,652,659

  Depreciation                     $    2,260 $    3,000 $          3,000 $        3,040 $      3,080
EBIT                               $ (370,664) $ 698,011        3,206,383      8,125,648   13,649,579

  Cash taxes               35.0%   $      -    $ 244,304 $      1,122,234 $    2,843,977 $    4,777,352
Net income                         $ (370,664) $ 453,707 $      2,084,149 $    5,281,671 $    8,872,226
% margin                                   0%        23%              36%            46%            50%
Lifetime Value Calculation
OFFLINE CUSTOMER

Revenue (per month)                                     Year 1   Year 2    Year 3
Average Monthly Usage                   12,030 kWh
P2S Commission                        $ 0.002
Monthly Revenue (Switching)           $ 24.06


Cost (Salesperson)
Salesperson Cost/Customer            $    208
Salesperson Commission               $   2.41
Paid Search/SEO/Month                $    -
Social Media Marketing/Month         $    -
Email Marketing                      $    -
Direct Marketing/PR                  $ 322.58
                               TOTAL $ 533.32           $ (271.07) $ 259.85 $ 259.85
                                                PV      $ (271.07) $ 214.75 $ 195.23

Discount Rate                              10%
Typical length of Customer Contract           3 years
Lifetime Value of Customer            $ 138.91
Lifetime Value Calculation
ONLINE CUSTOMER

Revenue (per month)
Average Monthly Usage                   12,030 kWh
P2S Commission                        $ 0.002
Monthly Revenue (Switching)           $ 24.06


Cost (Salesperson)
Paid Search/SEO/Month                $   161.29
Social Media Marketing/Month         $    19.35
Email Marketing                      $    64.52
Direct Marketing/PR                  $      -
                               TOTAL $   245.16         $ 43.56 $ 288.72 $ 288.72
                                                  PV    $ 43.56 $ 238.61 $ 216.92
Discount Rate                              10%
Typical length of Customer Contract           3 years
Lifetime Value of Customer            $ 499.09

				
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