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Contact    |  Sigvald@innoventum.se    |    Dr.  Sigvald  Harryson    |    Founder  and  CEO  Office  Location  |  Turning  Torso  275  |    SE-­‐211  15  Malmö      |    +46  732  50  49  81    Introducing  InnoVentum  

InnoVentum  was  established  as  a  limited  company  on  May  5th  2010  with  the  mission  of  giving  Power  to  the  People.  We  make  exclusive  designs  to  those  who  can  afford  and  affordable  designs  to  those  who  need.   In  2002,   iknow-­‐who.com  was  established   to   solve   fundamental   innovation   challenges  –  often  climate-­‐related  –  by  raising  collaborative  university  competitions  involving  the  global  centers  of  academic   excellence.   20   innovation   challenges   have   been   solved   since   then   and   InnoVentum  was  spun   off   from   iknow-­‐who.com   in   2010.   The   same   know-­‐who   approach   to   R&D   has   been   used   by  InnoVentum   to   co-­‐create   the   breakthroughs   that   combine   renewable   materials   and   renewable  energy  technologies  –  the  Dali  PowerTower,  roof-­‐mounted  wind  with  hybrid  solar  PV  and  the  Giraffe:  

     

Our  Research  &  Design  approach  proactively  engages  leading  researchers  from  centers  of  excellence  like  Lund  University   in  Sweden  and  ENSTIB  (Ecole  National  Supérieure  des  Technologies  du  Bois)   in  France.   Until   now,   we   have   created   one   PCT   (Global   Patent   Collaboration   Treaty),   9   design  protections  and   several   trademarks,   including   that   for  Dali.   The  use  of   renewable  materials  makes  our   solutions   CO2   negative   and   exceptionally   silent.  Modular   design   secures   compact   transport  volumes  and  ease  of  installation.  Our  PCT  is  centered  around  mechanisms  supporting  tower  erection  without  the  use  of  a  crane.  Excellence  in  CAD-­‐CAM  makes  mass-­‐manufacturing  possible  anywhere  in  the   world.   Any   wood   engineering   workshop   using   standard   CNC   (Computer   Numeric   Control)  machines   will   be   able   to   read   our   software   for   accurate   computer-­‐aided   manufacturing   of   our  towers.   All   wood   is   from   Sweden   based   on   responsible   forestry,   and   the   renewable   energy  technologies  and  batteries  deployed  are  sourced  from  leading  European  and  American  suppliers.    

 

   

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Our   university   partners   are   involved   throughout   the   R&D   process   and   continue   to   support  prototyping   and   commercialization.  Whenever   needed,  we   tap   into   our   vast   network   of   academic  expertise  to  further  optimize  specific  dimensions,  designs,  functions  and  performance-­‐parameters.    

We  intend  to  capture  revenues  amounting  to  600  mio  SEK  (€66  mio)  for  the  fiscal  year  of  2016,  and  we  will   capture   the   required  growth   from  two   fundamentally  different   segments   in   terms  of  value  attributes,  but  with  significant  synergies  in  terms  of  functionality.  

Exclusive  Design  to  Those  Who  Can  Afford  –  Affordable  Designs  to  Those  Who  Need    

We  address  both  the  top  and  the  bottom  of  the  pyramid  –  two  quite  differentiated  segments  –  with  one  common  product  portfolio  offering:  

1. Exclusive  designs  for  those  who  can  afford:  Real  estate  companies,  municipalities,  owners  of  EVs  and   leisure   homes   without   grid-­‐access,   commercial   chains   and   ecological   farms   who   all  appreciate   the   exclusive   design,   exclusive   renewable   materials   and   the   silent   and   reliable  operation  of  our  products;  

2. Affordable  designs  for  those  who  need:  NGOs,  disaster  relief  organizations  and  people  who  have  no  access  to  power  today,  who  appreciate  the  resource-­‐efficient  structure  of  the  PowerTower  –  as  well  as  its  high  energy-­‐density,  transportability  and  speed  of  installation.    

The  exclusive  design  markets  that  we  target  include  Sweden,  Denmark,  Germany,  Norway,  Japan,  UK  and  Benelux.  The  Power  to  the  People  markets  also   include  countries  where  access  to  electricity   is  poor  due  to  disasters,  such  as  the  Philippines,  which  is  where  we  start  to  apply  our  PowerTower.  All  our   solutions   optimize   the   use   of   renewable  materials   to   carry   renewable   technologies   (wind   and  solar)  in  hybrid  combinations  so  as  to  get  the  flattest  possible  power  curve  –  day  and  night,  summer  and  winter.  The  USPs  are  equally  appreciated  by  the  exclusivity  and  affordability  segments:    

 

   

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• Hybrid  combination  of  wind  and  solar  more  than  doubles  the  energy-­‐density  of  our  solutions  –  while  providing  a  flat  energy  curve;  

• The  renewable  materials  used  for  all  support  structures  make  our  solutions  both  CO2  negative  and  exceptionally  silent;  

• Using  art  and  nature  as  inspiration  for  our  design  –  leading  to  the  Malmö  Municipality  Award  for  Sustainable  Design.  

 

Combining  Technological-­‐  and  Social  Innovation      

One   additional   USP   that   is   particularly   strong   for   the   Giraffe   is   its   role   as   a   social   innovation   in  society.   For   example,  Malmö   City   ordered   a   Giraffe   to   greet   the   thousands   of   visitors   joining   the  Eurovision  Song  Contest  –  held  in  Malmö  in  May  2013:  

 

Thanks  to  its  smart  combination  of  technical  and  social  innovation,  the  Giraffe  was  recently  (February  2014)   awarded   with   a   1.6   mio   SEK   grant   from   the   Swedish   Energy   Authorities   to   support   EU-­‐certification  of  energy-­‐production,  noise-­‐level  and  sustainability.    The  Giraffe  has  already  become  an  appreciated   animal   among   the   Malmö-­‐citizens   and   visitors,   who   have   already   posted   some   100  pictures  on  Facebook:  

• https://www.facebook.com/media/set/?set=a.576605585732288.1073741832.204831216243062&type=1    

 

Hearing  is  Believing    

In  April   2014,   the   Swedish  Agency   for   Innovation  Research   (VINNOVA)   recommended   InnoVentum  for  a  larger  grant  to  support  the  commercialization  of  our  largest  solution  –  the  Dalifant  –  offering  an  annual   production   of   40.000   kWh   using   our   noise-­‐absorbing   tower   structure.   The   noise-­‐absorbing  design  brings  all  our  products  to  public  places  and  rooftops  –  one  even  being  on  top  of  a  library  with  a  maximum  noise-­‐level  of  37  DbA.  See  the  installation  at:    

• http://www.innoventum.se/dali-­‐performance/nggallery/slideshow      

 

   

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Combining  Wind  and  Solar  PV  to  Get  a  Flat  Power  Curve      

One  major  drawback  with  wind  energy  is  that  it  does  not  always  give  power.  Solar  power  is  even  less  regular   in   power   generation   as   it   cuts   every   night   and   is   low   in   the   winter.   The   diagram   below  presents  our  hybrid  solution  –  with  an  almost  flat  energy  curve.  The  main  reason  is  that  wind  power  provides  much  more  energy  during   the  dark  and  cold  parts  of   the  year  –  both  due   to  higher  wind  speeds  and  higher  air  density:  

 

In   short,   we   bring   renewable   energy   solutions   to   new   levels   and   new   arenas   by   offering   new  combinations   that   bring   new   user   benefits   in   terms   of   power   continuity,   esthetics,   acoustics,  modularity   and   sustainability.   Combined,   our   exclusivity   and   affordability   products   attract   a   wide  range  of  segments:  

1. Power   to   the   Public   Institutions:   Green   Municipalities,   Parks,   Universities,   Schools,   Daycare  Centers,  Marinas/Leisure  Harbors,  Public  Arenas  and  Sport  Centers,  including  Golf  Clubs.  

2. Power   to   the   Commercials:   Supermarkets,   Shopping   Malls,   Restaurant   Chains,   Do   It  Yourself/Home  Improvement  Chains,  Real  Estate  Companies   for  public,  commercial  and  private  tenants.  

3. Power  to  the  EVs:  Using  the  Giraffe  or  the  PowerTower  as  charging  station  for  Electric  Vehicles  –  both   at   public   parking   facilities,   along   roads   as   visual   green   charging   spots   and   as   home  installations   for   private   EV   owners.   After   a   slow   start  with   California   and  Norway   as   the   early  adopters,  the  EV  segment  is  now  growing  fast  in  several  geographies.  

4. Power   to   the   Ongrid   People:   Decentralized   power   generation   at   micro-­‐level   is   becoming  increasingly   popular   –   especially   in   countries  with   high   electricity   prices   and/or   Feed   In   Tariffs  (FIT).   In  Denmark  and  Germany,   the  consumer  price  of  electricity   is   three   times  higher   than   in  Sweden.  In  Japan,  the  FIT  is  60  Eurocent  per  kWh,  which  is  highest  in  the  world  and  more  than  10  times  higher  than  in  Sweden.  This  is  the  main-­‐segment  for  the  Dalifant,  which  has  an  ideal  energy  output  for  farms.  We  see  a  particularly  big  interest  from  ecological  farms,  which  are  growing  in  numbers  both  in  Sweden  and  beyond.  

5. Power  to  the  Offgrid  People:  Summer  houses  and  cottages  on  islands,  in  mountains  or  simply  in  areas  where  there  is  no  grid.  Norway  alone  has  more  than  200.000  houses  with  no  access  to  the  grid.  Globally,  this  is  a  very  large  segment  going  from  the  top  to  the  bottom  of  the  pyramid  with  1.4  billion  people  lacking  access  to  electricity.  In  this  sense,  this  segment  both  addresses  B2C  in  wealthy  countries  and  B2B  through  NGOs  addressing  the  bottom  of  the  pyramid.  

 

   

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Segmentation  &  Sales  Strategy  

We   can   cover   all   five   segments   listed   above,   because   the   first   four   segments   all   need   the   same  product  portfolio,  and  the  fifth  segment  uses  the  same  tower  structure  –  the  PowerTower  –  but  adds  a  battery  back  for  offgrid  use.  Although  offgrid  products  are  mainly  needed  in  emerging  markets  with  poor   public   grid,   we   also   see   a   need   for   off-­‐grid   products   among   exclusivity   buyers   in   premium  markets  such  as  Norway.  

We  will  devote  our  direct  sales  efforts  through  growing  teams  addressing  B2B  customers  in  Sweden,  Denmark,   Norway,   Germany,   the   UK   and   France.   We   will   also   build   a   platform   for   online   sales  capturing  B2C  opportunities  in  these  and  neighboring  markets.  

Japan   is  a  particularly   interesting  market  –  both  with  respect  to   its  need  for  renewable  energy  and  the  passion  for  wood.  The  leading  magazine  for  landscape  architects  in  Japan,  Landscape  Design,  has  already  published  several  articles  on  InnoVentum,  and  Japan  is  our  fourth  largest  population  in  terms  of  website   visitors.   A   dozen  potential   distributors   from   Japan  have   approached  us   and   three  have  been   confirmed   through   distributor   agreements.   For   an   example   of   the   articles,   see  http://www.innoventum.se/wp-­‐content/uploads/2012/05/Landscape_Design_Article2-­‐Cropped.pdf  

Sweden   is  our   lead-­‐market  and  marketing  platform  for  other  markets  to  follow.  Even  the  Power  to  the   Offgrid   People   segment   starts   through   a   B2B   collaboration   in   Sweden.   Together   with   the  Children’s  Mission,  we   are   bringing   offgrid   PowerTowers   to   the   Philippines.   Read  more   on   this   at  http://barnmissionen.se/blog/fillipinerna-­‐barnmissionen-­‐samarbetar-­‐med-­‐innoventum/    

As   already   mentioned,   1.4   billion   people   are   lacking   access   to   electricity.   We   have   started  relationship-­‐building   and  match-­‐making   efforts   towards   the   United   Nations,   who   happen   to   have  their  global   logistics  center   in   the  Malmö-­‐Copenhagen  Harbor  –   just   like  we  do.   It   takes   significant  time   to  qualify   for  business  with   the  UN  and  other   large  NGOs,  but   the   rewards  can  be   significant  too.  The  Philippines  pilot  is  crucial  in  opening  further  doors  into  the  UN  and  other  aid  organizations.  Since  we  started  to  provide  updates  on  the  Power  to  the  Philippines  project  on  Facebook  just  a  few  weeks  ago,  our  number  of  followers  has  increased  by  more  than  20%.  For  future  projects  of  this  kind,  we  will  tap  into  the  potential  of  crowdfunding.    

Investments  into  Salesforce,  IT  Platforms  and  IP  Expansion  

In  order  to  reach  the  600  million  SEK  (€66  million)  business-­‐target  by  end  of  fiscal  year  2016,  we  seek  investments  in  two  rounds:  9  million  SEK  during  2014  and  another  12  million  SEK  in  2015.  With  this,  we  count  on   reaching  30  employees  by  end  of  2015  and  60  employees  by  end  of  2016.  Most  new  employees   will   be   devoted   to   sales   and   project   execution.   We   will   also   strengthen   our   digital  marketing  resources  in  the  core  languages  required  and  build  IT  platforms  to  support:  

• Our  online  wind-­‐check  app  to  work  also  for  hybrid  solutions  and  core  markets  beyond  Sweden  • Online  performance  monitoring  –  allowing  for  customers  and  us  to  have  full  control  • Online  sales  for  DIY  products,  including  CRM  and  supply-­‐chain  coordination  • Additional  social  media  communication  and  crowdfunding.  

 

   

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We  will  also  widen  the  geographical  scope  of  our  patent,  design  and  trademark  protections.  Some  of  these   investments   will   be   carried   by   our   own   income   from   operations   (IFO).   The   items   that   will  absorb  the  investments  are  listed  in  the  chart  below:  

 

Value  Creation  and  Exit  Strategy:  

The  emission  for  2014  is  targeting  9  million  SEK  for  15%  of  the  company.  In  2015,  another  12  million  SEK  will  be  acquired  in  investments  for  10%  of  the  company.  The  exit  strategy  is  to  make  an  IPO  by  the  end  of  2016.  SE  Banken  Venture  Capital  indicates  a  pre-­‐IPO  value  of  1.2  billion  SEK  (€132  million)  when   InnoVentum   reaches   revenues   of   600   million   SEK   with   a   gross   margin   of   60%.   Should  InnoVentum  only  reach  300  million  SEK  sales  by  end  of  2016,  the  value  creation  for  investors  joining  this   emission   round   will   be   reduced   from   factor   20   to   factor   10,   but   this   ten   folding   will   still   be  achieved  within  less  than  three  years.    

The  graph  on  the   left  shows  the  value  creation  from  company  creation  through   IP  and  commercial  installations.  The  graph  on   the   right   shows   the   three  emissions  performed   in  black   figures  and   the  two  forthcoming  emissions  as  well  as  the  planned  IPO  in  green  figures:  

   

The  main-­‐reasons  and  key-­‐enablers  of  these  business  results  are  listed  on  the  next  page:  

Category Detail 2014 2015

IT3Budget Expand'Wind'check'App'to'Hybrid'and'NO,'DK'and'DE;'On;Line'Monitoring;'CRM;'Crowdfundingcovering'hybrid'solutions'and

Total: 8003000 6003000Marketing Printed'Materials;'Events;'Exhibitions;'Online'Advertising'incl'FB'and'Google'Ad'Words

Total: 4603000 8003000Sales3Growth Sales'People'and'Marketing'Installations'for'SE,'DK,'NO'and'DE

Total: 139403000 336503000Certification Tower'certification'for'Dali'and'Dalifant'in'DK,'DE'and'UK:

Total: 230003000 330003000IP Designs'(US'&'Japan),'Trademarks'and'Expanding'Patents'to'also'cover'China,'Hong'Kong

Total: 2503000 3503000

Project Project'execution'manager'responsible'for'supply'chain'and'Malmö;Copenhagen'Harbor'logistics

Execution Total: 3503000 7003000OPEX Running'costs'including:'salaries,'tax,'communication,'storage,'travel'(300,000sek'per'month) 3'600'000 7'200'000

Income3from3Operations3(IFO) 400'000 4'300'000

INVESTMENTS 33320143333AND33332015 930003000 1230003000

 

   

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• Positive   Business   Development   Trend:   Since   we   brought   our   first   sales   person   on-­‐board   in  March  2013,  we  did  more  sales   in  nine  months  than  during  the  first   three  years.  The  business-­‐development  figures  in  thousands  of  SEK  are:  2011:  100;  2012:  200;  2013:  900  

• Expanding  Distribution:  We  are  being   approached  on   a  weekly   basis   by   companies  wishing   to  become  our  agents,  distributors  or  installers.  So  far,  we  have  signed  six  distributor  agreements.    

• Web-­‐Logics:   For   every   year   so   far,   the   numbers   of   unique   web-­‐visitors   and   followers   on  Facebook   have   doubled   –   and   the   growth-­‐pace   is   still   increasing.   We   will   capture   the   viral  potential  through  online  sales  and  crowdfunding  platforms.  

• Visibility:  Our  spectacular  installations  at  the  Eurovision  site  in  Hyllie,  the  EV  charging  Giraffe  in  the  West  Harbor  of  Malmö  and  the  rooftop  installation  on  Blekinge  Technical  University  attract  a  stream   of   leads   as  many   people   see   them   and   are   attracted   to   know  more.   In   terms   of   lead-­‐capturing,  we  focus  on  high-­‐visibility-­‐installations.  

• Power  to  the  Offgrid  People:  One  segment  counting  1.4  billion  people  deserves  attention  both  in  terms  of  sales  and  communication.  We  have  experienced  very  positive  reactions  from  our  Power  to  the  Philippines  initiative  and  see  viral  potential  in  this  type  of  projects.    

• Financial   Solutions:   Starting   in   Sweden,   we   have   Swedbank   as   partner   offering   attractive  financing   solutions   to   our   customers,   who   get   lower   monthly   fees   than   the   energy   savings   –  making  the  investment  in  our  solution  cash-­‐flow  positive.    

• Security:   Through   a   partnership   with   a   large   Swedish   insurance   company,   our   customers   are  offered  attractive  insurance  solutions  both  against  damage  and  business  interruption.  

• Fame   and   Institutional   Support:   2014   has   started   very   well   in   February   with   InnoVentum  winning  the  Malmö  Business  Award  for  Sustainable  Development  and  Design.  In  March,  we  were  awarded  1.6  million  SEK  by  the  Swedish  Energy  Authority  for  EU  certification  of  the  Giraffe  and  in  April,   VINNOVA   (the   governmental   agency   for   innovation-­‐support)   recommended   InnoVentum  for  a  somewhat  larger  grant  to  support  the  commercialization  of  the  Dalifant.  

Thanks  to  the  VINNOVA  grant,  our  revenues  for  2016  will  also  include  the  Dalifant  –  at  least  to  some  extent.   Also   this   product   will   often   be   sold   as   hybrid   combination   with   the   PV   panels   mounted  directly  on  the  roof  of  one  of  the  farm  buildings  as  a  complement  to  the  wind  energy.    

     

PowerTower:  150  mio   Dali  Rooftop:  200  mio   Giraffe:  200  mio   Dalifant:  50  mio    Power  to  the  (offgrid)  People   SE,  DK,  DE,  JP,  FR,  NL   SE,  DK,  NO,  DE,  FR,  NL   SE,  DK,  DE,  UK  NO,  SE,  DK,  DE,  NL,  US   All  figures  are  in  SEK      

 

   

8  

List  of  Investors  (+  indicates  that  some  have  invested  more  than  once):      Name   Shares   Complementarity  of  Investors  

Sigvald  Harryson   320   Founder  and  Global  Alliance  Manager  

Henrik  Hildebrand   174   Legal  Compliance  Expert  

Mohsen  Djalali   20+10   Senior  Executive  within  Tetra  Pak    

Mark  Pilgerman   12+6   Operations  and  Germany-­‐expansion  

Ewa  Dudkowska   18   Baltic  Market  Expansion  

Niklas  Åkerman   18   Product  Management  

Martin  Ertl   12   Chief  Innovation  Officer,  Bombardier  

Percy  Petersson   12   Advisor  in  IP  Kaj  Kangeman   12   Marketing  &  Sales  in  Stockholm  

Rafal  Dudkowski   12+3+2   Strategic  Planning  &  Business  Development  

Bettina  Ullman   6   Marketing  Support  in  Austria  

Ala  Kazlova   6   IP  Management  and  Media  Innovation  

Stefan  Sjöblom   6   CEO  of  Delta  Energy  Systems,  Scandinavia  

Nils  Bohlin   6+3+3   Founder  of  ADL  Scandinavia  +  First  Investor  Yang  HAN   6   Marketing  and  IPO  Preparation  in  China  Christoph  Appert   6   R&D  Management  and  IP  protection  Danuta  Sikorska     6   Business  Development  in  Telecom  Olof  Sjögren   6   Business  Development  in  West-­‐Sweden    Mats  Kemi   6   Business  Development  in  North-­‐Sweden  Morgan  Widung   12+6   Our  New  Head  of  Sales  Manne  Widung   3   Graphic  Design  and  Sales  in  Åland  Jim   Håkansson   &   Charlotta  Grahn   4   Head  of  R&D  of  Nolato,  Material  Expert  Alexander  Stern   2   PhD  in  Crowdsourcing  of  Innovation  Dan  Olsson   7   CEO  of  Swedish  Healthcare  company    Per  Nilsson   1   Managing  Partner,  Roland  Berger  

Tord  Wingren   6  CEO   of   Ericsson   Mobile   Platforms,   MD   of  Samsung  Electronics,  Chairman  of  TAT  

     

We   welcome   additional   investors   who   have   complementary   networks   and   share   our   ambition   to  make   a   positive   sustainable   difference   for   the   benefit   of   future   generations.   Please   contact  Sigvald@InnoVentum.se  to  pursue  your  investment  in  a  green  future.  

 

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