Catch the Wind is focused on making renewable energy more profitable. The company provides wind sensing technology that accurately determines wind speed and direction, resulting in higher energy output and lower maintenance costs for wind farm operators and turbine manufacturers.
Leveraging USDA Rural Development Grants for Community Growth and Sustainabil...
Â
Catch The Wind Investor Presentation November 2009
1. 1
Catch the Wind
Making Wind Energy Profitable
November, 2009
Š2009 Catch the Wind, Inc.
2. Forward-Looking Statements
2
Certain statements in this presentation may constitute âforward-lookingâ statements
which involve known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or industry results, to be
materially different from any future results, performance or achievements expressed
or implied by such forward-looking statements. When used in this presentation, such
statements use such words as âmayâ, âwillâ, âexpectâ, âcontinueâ, âbelieveâ, âplanâ,
âintendâ, âwouldâ, âcouldâ, âshouldâ, âanticipateâ and other similar terminology. These
statements reflect current assumptions and expectations regarding future events and
operating performance and speak only as of the date of this presentation. Forward-
looking statements involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number of factors could
cause actual results to vary significantly from the results discussed in the forward-
looking statements, including, but not limited to, the factors discussed under âRisk
Factorsâ. Although the forward-looking statements contained in this presentation are
based upon what we believe are reasonable assumptions, neither we, nor the
Underwriters, can assure investors our actual results will be consistent with these
forward-looking statements. We assume no obligation to update or revise these
forward-looking statements to reflect new events or circumstances.
3. About Catch the Wind (TSX-V: CTW.S)
3
Forward wind Focused on
measurement making renewable
technology energy more
profitable
-Wind farm operators
-Turbine OEMs
We Make Wind Turbines Smarter
4. Genesis of Catch the Wind
4
4
Optical Air Data Systems Catch the Wind, Inc.
(OADS)
Established in 1990 Spin-off of OADS
Industry leader in fiber-optic $15M Qualifying
pulsed LIDAR technology Transaction â Sept. â08
SBIR Program Success Story Experienced
Roland Tibbetts Awardee - management team
Top Small Business Defense
Contractor Technology license for
all commercial (non-
Manassas, VA Small Business aviation) applications
of the Year 2007
5. Technology Applications
5
Military & avionics applications
Licensed to
Lidar All other commercial applications
Technology Licensed* to
* Irrevocable, perpetual and transferable
6. Nacelle-Mounted Smart Turbine Control
VindicatorÂŽ Laser Wind Sensor (LWS)
6
Aerospace Technology
Initially Developed for Safety of Flight Critical Applications
Lightweight $70M+
invested in R&D
Compact 19 years
in development
Rugged 27
patents
8. Why? Current Turbine Controls are Reactive
8
Here is
where wind
is measured ⌠but, here is where the wind is always shifting and gusting
todayâŚ
Reactive Result: No lead time to adjust
10. See the Wind Thatâs ComingâŚ
10
Here is
where wind
is measured Here is where we measure the wind
todayâŚ
300 meters (20 seconds at 35 mph)
Reactive Proactive
11. Wind Powerâs Holy Grail
11
Forecast Benefits
(National Renewable Energy
Accurately Laboratory Studies)
1. Increased Power Output
predicting wind Yaw Improvement approximately 10%
Pitch Improvement approximately 5%
speed and
2. Decreased Operating
direction Costs
Cost decrease approximately 10%
(from 30% less stress on blades
and 10% less overall damage)
12. We Make Wind Energy More Profitable
12
12
Higher Reduced
revenues maintenance costs
- Increased production âRecent development of LIDAR
- Sale of Renewable Energy systems promises large
Certificates (RECs) improvements in cost,
compactness, and reliability so that
- Production Tax Credits (PTCs) it becomes viable to consider the
- Higher capacity payments deployment of such systems on
- Preferable external financing large wind turbines. Potential
terms; lower weighted average advantages of this approach include
cost of capital (WACC) increased turbine energy output and
reduced turbine fatigue damage.â
NREL
13. How We See the WindâŚ
Laser Doppler Velocimetry (LDV)
13
1 Three laser beams
2 Lasers reflect off dust
3 We sense the color particles in wind and
change and calculate change color
wind speed and direction
4 VindicatorÂŽ LWS commands
optimal turbine alignment and
blade pitch
300 meters (20 seconds at 35 mph)
14. No Forward-Looking Competition
14
14
Conventional Anemometer ZephIR LIDAR VindicatorÂŽ Laser Wind Sensor
Larger/heavier Larger/heavier Compact/lightweight
Moving parts Moving parts No Moving Parts/Rugged
Inexpensive Approx. $200,000 per unit Economical
Not forward looking Measures up Forward-looking
not forward to 300 meters
15. Improving Economic Value
15
Sample Financial Model*
100 MW
Incremental NPV
FARM +1% Availability $1.9M
67 1.5-MW Turbines -10k/WTG O&M $5.9M
Cost to Purchase $9.4M
A/T Cost $5.6M
*Per AES Houston Wind Power 2009 | Based on $125K per unit + $15K retrofit kit
Assumes 40% corporate tax rate
16. Industry Validation â WEICan Phase 2
16
Pow er Production Com parison
50 Vindicato r Co ntro l
Nacelle Wind Vane Co ntro l
Average Power (kW)
40
30 REGIONÂ 2
20 REGIONÂ 3
10
0
VindicatorÂŽ LWS
5.5 6.5 7.5 8.5 9.5
Based on Data collected Apr â June Wind Speed (m /s)
2009
Percentage Increase in Power Production
VindicatorÂŽ and Wind Vane alternate
20
control every 9 hrs
15
% Increase
VindicatorÂŽ uses wind vane control
10
algorithm - not optimized REGION 2 REGION 3
5
Vindicator shows increased power
0
production 5.5 6.5 7.5 8.5 9.5
Wind Speed (m/s)
17. Industry Validation â Nebraska Power
17
T22
T23
T21
Average Active Power
1500
Power (KW)
Installed on Vestas V-82 #T22 in June 1000
Integrated by CTW and DNV-GEC
Vindicator started controlling the wind
turbine on July 8, 2009 500
Control optimization in progress
Data collected during August
0
Data shows significant increase in 0 500 1000 1500
power Time (Min)
18. Nebraska Power - Reduced Stress Loading
18
SWANTech stress wave analysis data taken
before and after VindicatorÂŽ installation
The Random Friction Index (RFI) for T-22
went from worst to best in the group
Random and periodic friction decreased
significantly on main shaft bearing on T-22
All snapshot data show excellent trends
STRESS DATA CORRELATES DIRECTLY TO A PERIOD OF INCREASED WIND POWER OUTPUT FROM T-22
19. Large Addressable Market
19
*Large turbines, 1.0MW and above
Potential
Number of
VindicatorÂŽ
Turbines
LWS sales*
Global installed based (2008) 80,500 $10.1 billion
Projected installs (2009 â 2011) 30,000 $3.7 billion
Total market opportunity through 2011 $13.8 billion
*Based on $125,000 introductory sales price
Global Projected Demand:
500,000 turbines with 1.0 MW+ capacity by 2020
20. Market Sales Forecast
20
20
4000
Number of Units
3500
3000 WRA - Maritime
WRA - Terrestrial
2500
Retrofit
2000
OEM
1500
1000
500
0
2009 2010 2011 2012 2013 2014
Unit sales forecast excludes additional product applications
21. Value-Driving Milestones
21
Q2 2008 WEICan Phase I Testing
Q3 2008 WEICan Phase II Testing
Q1 2009 Prototype Production
First Commercial Sale to AXYS Technologies
Maritime Application Licensing Agreement
Q2 2009 Control Systems Integration Project
Nebraska Public Power District Trial Program
Q3 2009 Helimax Trial Program
NREL â US Department of Energy Testing
Gamesa Agreement - Trial Program
BreconRidge â Contract Mfg Agreement
Q4 2009 Canadian Hydro Developers - Multiple Unit
Development Testing
Complete Gamesa Trial Program
Q1 2010 VindicatorÂŽ LWS Contract Manufacturing
22. Major Trial Programs
22
⢠Multi-unit testing
⢠Direct side-by-side comparison with non-
VindicatorÂŽ mounted turbines
⢠First trial program with OEM
⢠Gamesa G8X 2.0 MW
⢠Integrates VindicatorŽ LWS with turbine
control
⢠Cooperative Research and Development
Agreement
⢠Primary research lab of U.S. DOE
⢠3-year program to develop new
advanced smart turbine control systems
23. VindicatorÂŽ LWS for Grid Control
23
Positioning to be required equipment to connect to the grid
24. Management Team
24
Phil Rogers 21 years experience as successful small business defense contractor;
- President & CEO/Director Former director of Special Projects, Lockheed Skunk Works
David Samuels Extensive public company CFO and capital raising experience;
- CFO/Director Significant experience with emerging growth technology companies
Claudia Jaques 5 years Associate General Counsel - Corporate Securities, Freddie Mac;
- VP General Counsel 8 years experience with large law firm â corporate & securities
William Fetzer 3 years Business Development Director
- VP Business Development 10 years as President of Strategic Business Management Company
Daniel Lacroix Designed state of the art, world class Fiber Optical Manufacturing Facility
- VP Manufacturing 20 years high technology manufacturing experience
25. Board of Directors
25
David Garman Alisa Rogers
⢠Former U.S. Under Secretary of Energy ⢠Co-founder and President of OADS, LLC
⢠Assistant Secretary for Energy Efficiency
and Renewable Energy.
Phil Rogers David Samuels
⢠President and CEO of Catch the Wind, Inc. ⢠Extensive public company CFO and
⢠20 years experience as successful small capital markets experience
business defense contractor ⢠Significant experience with emerging
⢠Former director of Special Projects, Lockheed growth technology companies
Skunk Works
Richard McGraw Addition of Two Wind Industry
⢠Co-founder Bayview Public Ventures Executives
⢠Extensive GreenTech experience
⢠Private Equity Investor
26. Financing History
26
Sept. 2008 May 2009
$15 Million CDN $21.8 Million CDN
Qualifying Private Placement
Transaction 16.7 million shares
11.5 million issued ($1.30)
shares issued Significant Price
($1.30) Premium
27. Working Capital Usage
27
Average âBurn Rateâ per Month
$1.3M
$1.2 M
CAPEX
CAPEX
G&A
G&A
Materials
Materials
Manufacturing Manufacturing
Resources Resources
Q1 09 Q2 09
Cash position at June 30 was $19M
Ramp-up period â new hires, business development
Beta units currently manufactured by hand
Burn expected to decline by year-end due to low fixed cost structure
28. Market Sales Forecast
28
28
4000
Number of Units
3500
3000 WRA - Maritime
WRA - Terrestrial
2500
Retrofit
2000
OEM
1500
1000
500
0
2009 2010 2011 2012 2013 2014
Unit sales forecast excludes additional product applications
29. Equity Market Information
29
Ticker Symbol: CTW.S â V
52-Week Range: $0.50 - $2.00
Shares Outstanding: 54.9 Million
Fully Diluted: 60.1 Million
Market Capitalization: ~$100 Million
Holders: Insiders 46%
Institutional 46%
Retail 8%
30. Liquidity Initiatives
30
Analyst Coverage
NBF Rupert Merer; RCC Matt Gowing
Expansion of sell-side analyst coverage
Focus on retail investors
Investor meetings
Add-on to equity raise
Broaden US Investor Base
First round â.Sâ restriction expired
Second round â.Sâ restriction expires May 2010
Potential for future US SEC registration
31. Investment Summary
31
Additive technology focused on making wind energy more
profitable
VindicatorÂŽ LWS is based on proven technology
No competition
Significant existing market with enormous upside potential
Multiple sales channels
Essential for âGrid Controlâ
Extensive patent portfolio; high barriers to entry
Non-capital intensive business
Experienced management team delivering on milestones
32. 32
Investor Contacts:
David Samuels, CFO
Catch the Wind
dsamuels@catchthewindinc.com
(703) 393-0754 ext.107
Joe Racanelli
Equicom Group
jracanelli@equicomgroup.com
(416) 815-0700 ext. 243