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P22 Topstep Nigeria Limited
CTI PFAN West Africa Regional Coordinator
Albert Boateng
E-mail : [email protected]
Phone : (233) 275960468
Mentor
Segun Adaju
E-mail : [email protected]
Phone : 234 8024207468
POWER-TO-COMMERCE SOLAR
PROJECT
Presented by: Titi Masha
September 17, 2015
Milestones and Team
Business Goals
UNLEASHING THE ECONOMIC POWER OF SOLAR
Investment Request Topstep Nigeria is seeking funding to complete the development and
rollout of an enterprise ready solar powered solution for residential and commercial use.
The primary target market is rural dwellers across Nigeria and West Africa. The initial rollout of the system will be across several agricultural franchises in Nigeria
The equity investment required is $5.1 million and a debt investment is $1.96 million.
The expected 10 year NPV is $25 million and the ROI is 74%
Introduction to Topstep Topstep was established in Nigeria in 2009
Mission Statement
” To improve the lives of rural entreprenuers and raise them out of poverty“
An energy solutions provider with the following focus areas
solar PV and solar thermal solution design, and installation.
Energy audits
Energy business consultancy
Solar PV design and installation training
In 2014, Topstep was awarded a GE Power Africa Grant for the implementation of solar powered agriculture solution which will impact 2000 local farmers.
Topstep has been working in rural Nigeria since 2011. We have several ongoing projects including a solar powered agro processing solution.
Project RationaleIn Nigeria there are an estimated 25 million households with limited/no access to grid power.
These households are primarily situated in the rural areas of the country.
The recent privatization of the power sector has decreased the likelihood that these communities will be connected to the grid within the next few years
African Off Grid Market 75 mill households
Nigerian Off Grid Market
25 mill households
Project RationaleIn East Africa similar products have been selling on the market very successfully for several years.
• Monthly volumes are in excess of 2000 units
• These customers are primarily low income households situated in the rural areas of the Kenya, Uganda, Tanzania etc.
• Expansion primarily based on franchise model.
• They leverage numerous kiosks, and retail locations spread across several geographical locations.
Product Concept
The Topstep compact system includes; a solar PV module, controller/regulator and storage system will be installed at the customer business/home location.
The power generated can be used to power a variety DC and AC electronics and electrical
Description Battery
Cap
PV
Panels
DC
Output
Max
Power
USB
Ports
MaxAC
power
output
Daily
energy
stored
BasicUnit 17Ah 50 4 60W 2 NA 140Wh
StepUp
System
40Ah 100 6 120W 2 200W 320Wh
SOLAR EN-ERGY AS A SERVICE
Partner with credible farmers’ organizations
State-of-the -art
enterprise-enabled solar systems.
Smart Retail Kiosks and techniciansFranchise repayment scheme4
Business Model – Service Approach
Organized Entity
SOLAR EN-ERGY AS A SERVICEBusiness Model – Service Approach
A variety of sales models will be used depending on the customer base and associated credit risk.
COMPARISON CHART – MARKET PRICE
$27/month spend on replaceable
Carbon by typical BOP household
Topstep offers more functionalityand
guaranteed customer service for less $
$2 - CandlesMonthly savings$7
$5 - Batteries
Flat monthly charge $18/month$6 - Phone Charging
$14 - Kerosene
Source: GSMA, TSNL market research, *$25/month
Enterprise enabled solarsolution
3
THIS SERVICE CREATES AN ON-GRID EXPERIENCE
Replaces kerosene, batteries, candles, wood for households
Replaces fuel for enterprises
TOPSTEP ENTERPRISE READY SOLAR SOLUTION
-- enable and drive local commerce
Qty. Rate Daily Revenue Annual Revenue
Phone charging stations 45 50 2,250 821,250
Grinding Stations 5 100 500 182,500
ICT centers 2 100 200 73,000
Barber/Hairdresser 5 100 500 182,500
Creating Wealth
SOLAR EN-ERGY AS A SERVICEBusiness Model – Competitive Advantage• Numerous business and sales models/derivatives to adapt to the
various market segments: - outright buy, lease, credit sales etc.
• Long term partnership with large cooperatives and organizations.
• Focus on subset of larger market group to increase success.
• Lessee will have access to our productivity team and resources to help increase commercial enterprise and associated revenue.
• Lessee will receive “free” replacement of consumables annually/biannually to maintain system reliability.
• Lessee will receive technical assistance through our network of first responders (“Farkusana”)
Project Promoters
Ola has extensive experience in design for manufacture, quality management systems, lean six sigma, supply chain and supplier management. As a certified Black Belt of the American Society of Quality (ASQ) he regularly leads courses in Lean Six Sigma, Quality Management, Quality Processes, and Supplier Development and Management. These are also areas where he has spent over 20 years consulting for companies in the UK, Japan, China, the US and Nigeria.
Ola Olawuyi is the MD/CEO of Topstep Nigeria Limited. He holds a Bachelors degree in Mechanical engineering from the University of London, Southbank, a Masters degree in Management from the University of Stirling, United Kingdom and an MBA from the University of St. Mary’s, United States of America.
Project Promoters
Titi has a Bachelors and Masters degree in Mechanical Engineering from the University of Minnesota and the prestigious University of California Berkley, USA respectively.
As a certified Lean Six Sigma Green Belt she has extensive experience with processes reengineering and business optimization across many different industries.
Titi Masha is our Chief Operating Officer and the Principal Supply Chain Director. Titi has over 15 years supply chain experience with top Fortune 100 companies including Accenture, Best Buy and 3M in America and recently as the Head, Procurement with Oando Plc in Nigeria.
Major Risks & MitigationRisk Mitigation
Sabotage and Theft Units installed in secure residential/businesslocation within the community
Insurance coverage to cover loss, damage, theft etc.
Lien program against the farmers future earning
Credit Risk Short payment cycle (weekly) Established franchises with a proven track record Franchises are existing collection partners on
other Topstep project. System is portable and can be easily relocated to a
new community/household
Revenue Recovery Captive clients with long term take-or-pay contracts.
Payments will be paid through the franchise administrator
Lien on future payments due to cooperative members
Applicable to the lease programme and credit sales programmes only
Project Timeline and Activities
Project timeline: From kickoff to installation of initial
production run is 11 months.
Investment will be used to drive the following activities
Completion of Product Design and Testing
Initial production run
Development of payment and distribution channels
Staff Recruitment and Training
PAYMENT COLLECTION RELATIONSHIP WITH FRANCHISE PARTNERSPartnership
Topstep Team
Franchise Members
Franchise Administration
Cost StructuresUse of Fund USD %
PROJECT DEVELOPMENTSoft Costs 226,131 3%
Technical Study 201,005 2%
Bankable Feasibility Study 100,503 1%
Legal 175,879 2%
Travel Cost 75,377 1%
Consultancy Cost 125,628 1%
Salaries 423,807 5%
Total Project Development Cost 1,328,329 15%
CAPEXMaterial cost 2,763,819 32%
Material cost - expansion 1,768,844 21%
Kiosk 1,426,131 17%
Vehicle: Okada 36,181 0%
vehicle: Truck buses 175,879 2%
Total Capex 6,170,854 72%
FINANCE COSTSFinance Fees 490,264 6%
Rolled Up Interest 0 0%
Legal Fees 0 0%
Total Finance Cost 490,264 6%
CONTINGENCYContingency Reserve 603,015 7%
Total Uses of Fund 8,592,462 100%
Material Procurement
43%
LARGEST PERCENTAGE SPEND
Kiosks 17%
Project Dev. 15%
Financials
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1 2 3 4 5 6 7 8 9 10
10 year Revenue Stream Contribution
Lease Outright sales Credit Sales
-
5.00
10.00
15.00
20.00
25.00
30.00
1 2 3 4 5 6 7 8 9 10
10 year Revenue Projections
TOTAL (mill USD) 指数 (TOTAL (mill USD))
Financials
Investment Ask & Returns Total Project Cost: $8.56 million
Developer contribution: $1.4 million
Requested amount :
$5.1 Million equity ( 25% equity stake)
$1.96 million debt (23% leverage rate)
Returns: 74% ROI
10 year NPV: $25 million
Exit Strategy: Investor Buyout – Investors will be able to exit
through a buyout programme from other current or potential
private investors.
