“ Add
your company
“Heating
longer forslogan
less” ”
AQUAESTUS
www.aquaestus.com
®
info@aquaestus.com
LOGO
Outline
Your Investment: £250k with 30% equity in AquaEstus
Return: You will recieve an 11 fold return of £2.8m after 3 years
Our product, Bio-Ad
Latest in energy conservation technology
Easy to use
Only product of its type in the market
Savings: reduce your utility bills up to 37%
In accordance with legislation concerning energy efficiency
IP protected
Field tested
CE Marked
The market
Potential market of £2.7bn in the UK alone
AquaEstus – The Team
Dr. Jennifer
Jennifer Hannant
Hannant
Dr.
Dr.
Jonathan
Pate
Mr.
Andrew
Pike
Mr.
MiguelHannant
Galindo
Dr.
Jennifer
Dr.
Dr. Jonathan
Jonathan Pate
Pate
Mr. Joe Hedley
Marketing Director
Director
Marketing
Mr. Miguel Galindo
Technical
Technical Advisor
Advisor
Mr.
Mr. Andrew
Andrew Pike
Pike
Marketing
Director
Operations
Director
Managing Director
Financial
PhD
Law Director
Technical
Advisor
MSc Chemical
Engineering
BMA
Award
2008 Best
Marketing
Project
6
Years
Experience
in SME
Investment
Newcastle
University
7 Years
Experience
in Process Development
and
Real
Estate
Development
5
Years
Experience
in
Industry
Senior Lecturer in Biochemistry
Production
Operations Director
Director
Financial
Financial Director
Advisor
Product Concept: BIO-AD
Biodegradable
Oscillating biochemical
HOT
COLD
IP position
easy to add
Radiator cooling curves
BIO-AD
BIO-AD
AQUAESTUS
Noncorrosive
Durable for
approximately
of 2 years
No need
to drain
the system
Market Opportunity
£7k
installation
BIO-AD PRO
£150
installation
£25
installation
£5k
installation
AQUAESTUS
Price - £45
every 2 years
£150
installation
Cost – over £12k to install
Savings ~ £950 a year
Savings ~
£400 a year
Primary Market Size
In 2008, housing accounted for 30.23% of all
energy use in the UK
20 million homes
Target market
<1%
Market size
90% contain
central heating
systems
through
residential
alone
True market
opportunity is 18
million home
owners
18 million homes
at £45 per unit =
£810 million
Route to Market
Commercial and
Public Sectors
•The UK’s 2nd largest supplier of heating and
renewable energy.
£2.7bn
Builders
Merchants
•Based in Newcastle they fit more than 50,000 energy
efficient central heating systems across the country
every year.
£810M
Residential
•A wide range of clients.
•AQUAESTUS have a 1 year exclusive pre-contract
£8.1M
agreement.
Year 1
Year 2
Year 3
Finance: Equity Share
At year 3 annual profit = £1.9m
AquaEstus valuation = £9.5m
Exit : Trade Sale
Your return on £250k = £2.8m
AquaEstus Next Step
Production of 10.000units of Bio-Ad £300k
Securing IP
£15k
Salary of 3 full time staff
Establishing distribution network £15k
Overheads
Market Assessment / Consultancy £50k
£650k
Sales = £450k
1st year
£100k
£30k
Development £140k
Debt = £200 k
1st year
YOUR INVESTMENT £250K
Pounds (£k’s)
Projected Profit vs. Sales
10,000 units
40,000 units
90,000 units
Pounds (£k’s)
Projected Profit / Loss Scenario
Shoe String Testing
BIO-AD Independent Test (CIM) in 150
houses voluntarily over a period of 1 year;
• Results confirmed savings up to 37% on
utility bills
• The case study also showed ease of use
and installation
• 93 % tested houses would buy it
Accelerated tests indicated that BIO-AD
life cycle is 2 years for optimum
performance
Cost of Production / Distribution
COST (£)
Warehouse distribution centre in UK
Local Production
UK
Transfer
Period
1
1 L cost = £ 30
Production overseas
Germany / Romania
2
1 L cost = £ 15
3
Year
Beyond Year 3
EXPANDING HUMAN
RESOURCES
OUR COMMITMENT TO
R&D
MARKET
DIVERSIFICATION
longer
for less”
““Heating
Add your
company
slogan ”
LOGO
AquaEstus First Steps
£ 50K Business Angel, A. Pike
INITIAL INVESTEMENT
£ 80K
£ 30K Personal Investment £10K each
Patent filed Feb’ 2008
Legal Support
Product development
PCT application Feb’ 2009
Marketing Research
In-house testing
CE Marking
External validation
Year 1
Year 2
Year 3
10000 units £45 =
£450000
25000 units at £45 =
1125000
72000 units £40 = £2.9m
Production cost £30
per unit
Production costs £20 per
unit
Production costs £15 per unit
= £300000
= £500000
= £1080000
Salaries
100000
100000
200000
Overheads
30000
30000
30000
R&D
140000
210000
260000
Distribution
15000
40000
50000
IP
15000
15000
15000
Travel
20000
30000
30000
Market/consultancy
50000
70000
70000
sum
370000
495000
655000
profit
-220000
130000
1165000
Conservative case
7-fold return
Year 1
Year 2
Year 3
10000 units £45 =
£450000
40000 units at £45 =
1800000
90000 units £40 = £360000
Production cost £30
per unit
Production costs £20 per
unit
Production costs £15 per unit
= £300000
= £500000
= £1080000
Salaries
100000
100000
200000
Overheads
30000
30000
30000
R&D
140000
210000
260000
Distribution
15000
40000
50000
IP
15000
15000
15000
Travel
20000
30000
30000
Market/consultancy
50000
70000
70000
sum
370000
495000
655000
profit
-220000
805000
1865000
Expected case
11-fold return
Year 1
Year 2
Year 3
10000 units £45 =
£450000
50000 units at £45 =
2250000
120000 units £40 = £4800000
Production cost £30
per unit
Production costs £20 per
unit
Production costs £15 per unit
= £300000
= £500000
= £1080000
Salaries
100000
100000
200000
Overheads
30000
30000
30000
R&D
140000
210000
260000
Distribution
15000
40000
50000
IP
15000
15000
15000
Travel
20000
30000
30000
Market/consultancy
50000
70000
70000
sum
370000
495000
655000
profit
-220000
1255000
3065000
Best case
18-fold profit