market-based solution for clean and affordable drinking water in haiti y1q3 board meeting board of...

Market-Based Solution for Clean and Affordable Drinking Water in

Haiti

Y1Q3 Board Meeting

Board of Directors19 February, 2014


Haiti

Agenda

1. Call to Order and Corporate Housekeeping2. Summary Scorecard3. Q1-Q3 Financials and Forecast4. Sales Performance5. Distribution Model and Kiosk Ramp Up6. Kiosk Deployment7. Fundraising Status8. Approvals and Follow Up Actions


Haiti

Summary ScorecardFocus Area Notes Status

Revenue Generation Only at 50% of target revenue. Focus on distributor program development Oct – Dec slowed growth but now on track; next kiosks will ramp up quickly due to pre-launch distributor development

Behind plan

Site Selection & Community Engagement

Sites 1-5 secured, leases all low cost except for Santo site;Site selection process started for next 10 sites in the North

On Track,Low Risk

Kiosk Deployments Next 4 kiosks 2 – 7 weeks behind schedule; all operational in April;Need more scalable process for predictable, cost-effective, compliant foundations

Behind schedule

Water Quality Management

No significant issues with water quality; Very good customer satisfaction with taste of water

On Track, Low Risk

Government Relations Business permits, local permits acquired; Moving forward with CFI tax exemption process

On Track, Low Risk

Personnel Key technical roles needed;Kiosk recruitment moving according to plan;Risk of eroding team dynamic upon movement to North

On Track, Medium Risk

Budget Management On budget for 2013, but only 50% of the costs kiosks 1-15 realized. Likely to be $500K over Feb 2013 budget to reach 20 kiosks


Fundraising $500K grant closed; waiting formal USAID approval for $200K grant;$300K investor financing secured. Seeking additional $430K to close in May 2014



Haiti

Agenda



Haiti

Budget vs. Actuals – Yearly Composite

Feb 2013 Budget Aug 2013 Forecast Actual/Forecasted Feb 2013 Budget Aug 2013 Forecast Actual/Forecasted

Overhead 1578840 1810285.87929552 1883539.03

Regional 0 111996.57 71831.04

Cap Ex 1113000 1200594.03 872781.483199999

Total $2,691,840 $3,122,876 $2,828,152

250,000

750,000

1,250,000

1,750,000

2,250,000

2,750,000

3,250,000

$2,691,840

$3,122,876

$2,828,152


Haiti

Budget vs. Actuals – Overall Budget by Quarter

Q1 Q2 Q3 Q4

Feb. 2013 Budget 820660 577960 579160 714060

Aug. 2013 Revised Budget 1039431.6 315839.5 975656.299295524 791949.08

Actuals 1054752.67 323687.88 804871.619999999 644839.3832

100,000

300,000

500,000

700,000

900,000

1,100,000


Haiti

1 Year Cash Forecast

Q1 Cash In Q1 Cash Out Q2 Cash In Q2 Cash Out Q3 Cash In Q3 Cash Out Q4 Forecasted Cash In

Q4 Forecasted Cash Out

Q1 Cash In Q1 Cash Out Q2 Cash In Q2 Cash Out Q3 Cash In Q3 Cash Out Q4 Forecasted Cash In

Q4 Forecasted Cash Out

Cash In Investor

2059795.44 NaN NaN 0 600000 NaN 70000 NaN

Cash In Grant

NaN NaN NaN NaN NaN NaN 500000 NaN

Cash in Earnings

NaN NaN NaN NaN NaN NaN 9000 NaN

Cash Out

NaN 1054752.67 NaN 323687.88 NaN 804871.619999999

NaN 644839.3832

Cash Remaining

2059795.44 1005042.77 1005042.77 681354.89 1281354.89 476483.27 1055483.27 410643.8868

250,000

750,000

1,250,000

1,750,000

2,250,000


Haiti

15-Kiosk Budget vs. Actuals

Feb. 2013 Aug. 2013 Spent + Forecasted

$1,113,000$1,230,000

$574,716

$772,353

1347069.5116106Over 15 kiosks, expected to overspend Aug. forecast by $117,070


Haiti

Agenda



Haiti

Kiosk 1 Sales Performance: Monthly


Haiti

Kiosk 1 P&L


Haiti

A typical Authorized Distributor. James in Luly

An Authorized distributor is a registered store with a community that has all the legal requirements such as:

• Patente• Proper building and capacity to grow• Acceptance in his community• Purchasing power• Desire to promote improve services within the community • Willingness and capacity to apply the programs develop by

DHOSA• Size of Communities with a 500 meter ring needs to be approx

200 homes.


Haiti

Tracking the distributors in the first 5-8 weeksQuantity of 5 gallons jugs sold monthly December January February

*** ExtrapolatedTargets

James 225 295 (223) 348 500

Judette 118 105 (119) 185 500

Pasteur Yves 838 1030 (707) 1100

1500


Haiti

Agenda



Haiti

Entrepreneurial Ecosystem Value Added Services and Higher Volumes

• dloHaiti focuses on core competence: production and water quality

• Distribution via entrepreneurs

• Creates opportunities for entrepreneurs, community buy-in (security)

• Expands customer base per “kiosk”


Haiti

Original Product and Channel Rollout Fill Your Own Prefilled Jugs Distribution

Distribution

Phase 1

Phase 2

Phase 3

OTC OTC Jug Exchange

Delivery to Homes

(above) (above)

Delivery to Selected Institutions

(above) (above)

Delivery to retail distribution channels;

Expansion of delivery to institutional customers


Haiti

Distribution Model

500 m

OTC

5 km

C. Delivery to Institutional Customers

B. Community Associations

A. Stores

D. Wholesaler


Haiti

Channel Distribution Model

Stores10 per Kiosk

Community Associations

4 per Kiosk

Wholesaler1 per Kiosk

CommunityInstitutions

10 per Kiosk


Haiti

Channel Distribution Model


Haiti

120 Families per Store: James


Haiti

Regional Distribution of Stores for Site 1


Haiti

Pre-launch Distributor Development

• Phases1. Recruitment (2 months)2. Volume ramp up (1 month)3. Expansion

• Recruitment of distributors and institutional customers prior to kiosk launch

• Focus upon launch: Ramp up and expansion

• Result: shorter ramp up period

(see fiches techniques)


Haiti

Anticipated Ramp Up for Kiosk 2-5


Haiti

Development of Distributor Financing Program

Jugs

Racks

Certification• Training• Upfront audit• Ongoing audit

Jugs

Racks

Certification• Training• Upfront audit• Ongoing audit

Vehicle

Reseller - Store Reseller + Delivery Services

30x = $90

1x = $100

$100 upfront$50 annual

100x = $300

3x = $300

$100 upfront$50 annual

$290 upfront financed 80% by MFI6-9 month payback scheduleReseller responsible for annual fee


Haiti

Agenda



Haiti

Deployment Status


Haiti

15-Kiosk Budget vs. Actuals

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000$150,000

$142,292

$92,500

$111,196

$71,000$76,000

Generator Water Treatment Equipment Solar Equipment Internal Fixtures and Fittings

Borehole Landscaping, Fencing Foundation Building Exterior

Kiosk Building


Haiti

Issues, Risks, and Mitigation

• Higher/unanticipated costs:– Foundation + $8-9K– Fencing required by DINEPA +$ 5K– Solar + $3K

• Current foundation approach not scalable, cost not predictable

• Need to accelerate re-evaluation of building construction approach for next 10 sites– Need to re-engage additional building partners– Outsource deployment to Construction Management

firm sooner than later


Haiti

Agenda



Haiti

Year 2: 20-Kiosk Cash Forecast


Haiti

Oct 2013 20-Site Financial Forecast


Haiti

Fundraising: GrantsDonor Amount Notes Probability

Caribbean Compete $500K In final round. Final submission complete.Financial due diligence and credit check scheduled for Oct 17th;Decision by end of November 2013

Confirmed

LEAD (PADF) $200K Business plan competition. Funds can be applied to general budget.Decision by mid November 2013

Awaiting USAID approval

Open Source Initiative donors(Cisco, GSMA)

$150K Partnering with Dalberg and Accenture entity. To support development of open source RMS and POS system (not in original budget)

80%


Haiti

Fundraising: Investors for $730KInvestor Amount Notes Probability

MMA Global Investments

$150K In final due diligence before negotiations 80%

Doug Lee $100K Individual investor 90%

Jim Chu $100K 100%

Grameen Foundation’s Pioneer Fund

$250K -$500K

Strong interest but not possible before May

60%

Vital Capital $730K 30%

Other smaller investors

$50K or less

Diaspora Investment Roadshow

Target close: May 2014Price per share increases by 2% points each month with a cap at 30%


Haiti

Agenda



Haiti

Board Approvals

1. Pursue discussion with MFIs for financing of distributor package including jugs and vehicles

2. Use of Convertible Note to secure / lock timing of remaining financing

3. Approval for formation of construction management committee to determine strategy

– Need construction management expertise


Haiti

Action Items from Board

• Help identify expertise on chain business management

• Set board meeting date and country visit: week of May 19 – Provisional Tues May 20 3pm, field visit next day– Coordinate country visit by FMO– View sales and ramp up volumes– Understand selection of next 10 sites– Assess financing needs


Haiti

Backup


Haiti

Current Org Chart


Haiti

Projected Versus Original Kiosk Budget (Aug 2013)

market-based solution for clean and affordable drinking water in haiti y1q3 board meeting board of...

Documents

affordable drinking

marketbased solution

haiti budget

kiosk budget

taste of water

haiti agenda

medium risk slide

kiosk ramp