Westinghouse Solar Management Presentation February 2011

Transcription

1 Westinghouse Solar Management Presentation February 2011 NASDAQ: WEST

2 Safe Harbor Statement Statements made in this presentation that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of Such statements are based on the current expectations and beliefs of the management of Akeena Solar, Inc. dba Westinghouse Solar and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a more detailed discussion of factors that affect Westinghouse Solar s operations, please refer to the company s Securities and Exchange Commission filings. The company undertakes no obligation to update this forward-looking information. 2 1/18/2011

3 Westinghouse Solar Designs and Manufactures Rooftop Solar Power Systems 30 issued and pending patents related to unique and simplified solar panel installation technology Rapidly growing distribution network 130+ direct dealers 120+ installers in national HVAC contractor network Strategic partners Exclusive worldwide rights for Westinghouse Solar brand accelerates adoption throughout distribution network Asset-light OEM manufacturing model Award winning Westinghouse Solar panels provide the best combination of safety, performance and reliability, while backed by the proven quality of the Westinghouse name. 3

4 Company History and Milestones 2001 Founded as residential installer in California 2003 Expanded to East Coast markets 2004 Applied for patent for first solar panel (Andalay) with integrated racking, wiring and grounding GOALS Released Andalay solar panel First plug and play AC solar panel (Andalay), sold via distributors, retailers (Lowe s) and installers in U.S. and Canada Exited installation business in NJ, NY, CO, CT and PA Signed exclusive worldwide agreement for Westinghouse Solar brand Expanded distribution to electrical and HVAC contractors Exited installation business in California Headcount from 190+ to 35, Op Ex savings of $3m per quarter Improve manufacturing cost structure with second supplier Release new higher output products Expand distribution to new home builders Generate licensing revenue for plug & play solar technology 4

5 Barry Cinnamon Chief Executive Officer Margaret Randazzo Chief Financial Officer Jeff Kiel EVP Sales & Marketing Gary Mull VP, Marketing Robert F. Kennedy Jr. Board of Advisor Member Ron Kenedi Board of Director Member Management Team 30+ years experience in renewable energy and technology Recognized Solar Industry Leader 20+ years of financial experience, VP/Controller Knight Ridder, CPA CFO Ft Worth Star-Telegram; President & Publisher Modesto Bee; Arthur Andersen 25+ years experience in media advertising, management and finance President and Publisher, San Jose Mercury News; VP Finance Miami Herald 30 years of marketing & sales experience in consumer & commercial markets Experience at Emptoris, Siebel and Software Publishing Corporation Mr. Kennedy is an influential policymaker and passionate environmentalist President of Waterkeeper Alliance, Pace University Environmental Litigator, Vantage Point venture partner Mr. Kenedi established and led Sharp s Solar Energy Solutions Group, achieving #1 market share position in U.S. for several consecutive years 5

6 Solar Installations to Accelerate as US Reaches Grid Parity 6

7 Evolving Solar Industry Fundamentals Installation Labor Represents the Biggest Cost Reduction Opportunity 1 Expected 5-Yr CAGR Cost Reductions Total Price -16% Module -16% Inverter -10% Materials -17% Labor -18% ¹ Source: Piper Jaffray Research, commercial system pricing. How can installation labor costs be reduced? 7

8 Westinghouse Solar s Integrated AC Panel Ordinary Installation Westinghouse Solar Installation 80% Fewer Parts, 50% Less Labor, Higher ASP s 8

9 Westinghouse Solar AC Panel Advantages Superior aesthetics Panels mount flush to rooftops and look like a skylight No bulky inverters or unsightly wiring Designed for safety Integrated panel wiring and grounding No dangerous 600 volt DC wiring or arcing Built-in reliability No racks, wires, clips, fuses or DC wiring Flat roof systems are non-penetrating (no roof leaks) Panel-by-panel performance monitoring Best lifetime performance 5-25% greater real world efficiency due to superior handling of individual panel shading and performance mismatch Outstanding installer advantages Lower engineering, logistics and installation costs Safer installations Higher profit potential 9

10 Ordinary Solar Installation 39 Hours 1. Design and Engineer System 2. Project Logistics 3. Securely Attach Roof Brackets 4. Install Racking System 5. Mount, Wire and Ground Panels 6. Complete DC Wiring and Install Inverter 10

11 Westinghouse Solar Installation 20 Hours 1. Design and Engineer System 2. Project Logistics 3. Securely Attach Roof Brackets 4. Install Racking System 5. Mount, Wire and Ground Panels 6. Complete DC Wiring and Install Inverter 11

12 Westinghouse Solar Growth Strategy Asset-light OEM manufacturing to leverage industry panel oversupply Focus on branded and technologically differentiated products, not commoditized panels Reduce COGS to make Westinghouse Solar panels more competitive New customers and strategic partners 12

13 30 Patents Issued or Pending Covering Solar Installation Technology Company awarded first patent for plug and play solar panel U.S. Patent # 7,406,800 Filed May 2004, issued August related U.S. patents granted Korean, Australian, Indian, Mexican patents also granted Covers: Splices between panels - provides structural rigidity Side electrical connectors - eliminates need for wiring of panels Splices provide electrical grounding path between panels (UL and NEC requirement) Racking built into side of panel frame panels attach directly to roof Strong IP for Reducing Solar Installation Costs 13

14 Cost Reductions Improve Competitiveness Lower component costs in 2011 make Westinghouse Solar panels much more competitive 14

15 Significant Cost Reductions Since 2008 Opportunity for additional savings with additional OEM partners Excludes cost of panel 15

16 New Customers and Strategic Partners authorized Westinghouse Solar dealers 120+ installers in national HVAC contractor network California and national installers (REC, RSOL) Lowe s Home Improvement stores New strategic accounts Licensing opportunities 16

17 Revenues by Business Segment *Revenue was all from installation sales. Design and manufacturing business launched in Q Exited installation business in September Design and manufacturing revenue was $8.7m in 2010, compared to $2.0m in

18 Financial Summary (US $ in millions) Q Q Q Q Q Q Q Q Net Sales - $0.2 $.4 $1.4 $0.7 $2.2 $2.1 $3.6 Gross Margin 0.0% 11.7% 10.2% 16.6% 15.8% 15.4% 15.9% 13.4% EBITDAS (EBITDA + Stock Compensation) Cash (including Restricted Cash) $(1.8) $(1.3) $(1.7) $(1.7) $(2.1) $(1.7) $(1.5) $(1.2) $2.9 $7.0 $7.2 $5.8 $2.7 $4.9 $1.6 $1.1 Total Assets $20.0 $19.2 $18.6 $18.6 $15.9 $17.6 $12.5 $8.8 Credit Facility $ - $ - $ - $ - $ - $ - $0.3 $0.5 Total Liabilities $8.8 $8.7 $9.1 $10.5 $8.8 $9.3 $8.9 $4.8 Equity Diluted Average Shares Outstanding Above net sales, gross margin and EBITDAS reflect ongoing distribution business only and exclude discontinued installation operation $2.6 restructuring charge incurred in Q associated with our exit of the installation business $1.0 million cash-backed line of credit with Comerica; $0.5 million outstanding borrowings as of December 31, Raised $3.6 million through Securities Purchase Agreement in February New $750,000 line of credit (backed by accounts receivable) with Bridge Bank established in February

19 Westinghouse Solar Combines Technology, Distribution and Branding for the Rooftop Solar Industry DC Panels with Racks Hazardous & Complex Capital-Intensive Manufacturing Unbranded Commodity AC Panels, Plug & Play Safe & Fast Installations Asset-light OEM Manufacturing Westinghouse Brand 19

20 Contact Information: Westinghouse Solar 1475 S. Bascom Avenue, Suite 101 Campbell, CA Barry Cinnamon CEO, Margaret Randazzo CFO,

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