Variation b s 2012 11-11

■ ABOUT US

■ PRODUCTIDEA, BACKGROUNDPATENTNEW TECHNOLOGY FOR PREFABRICATIONPROTOTYPE, MODELS, VIDEOINTEGRATED NEW AND TRADITIONAL TECHNIQUESAPPLICATIONS, LOGISTICSDESIGN / ARCHITECTURE ENVIRONMENT

■ MARKET STATE/POSITIONINGCUSTOMERSTRADITIONAL BUILDING CONSTRUCTIONS / COMPETITORS LAYOUT/ PRODUCTIONLINE

■ ECONOMY / PROFITOPTIONSINVESTMENTSCAPITAL NEEDSCALCULATIONS

■ OUR SOLUTIONS PROVIDES:OFFER /COOPERATIONSUMMARY

■ APPENDIX

VARIATION BUILDING SYSTEM//PATENT/ © PHA-GROUP KB ®

PHA GROUP KB

We provide solutions for unique prefabrication including installations, and which provides big profits for

the / companies and actors

PHA stands for: Prefabricated Holistic Architecture

KB stands for: Company with special liability.

Berndt Jores, architect SAR / MSA

with extensive experience in architecture and in the construction sector. Developed / participated in pioneering

architecture and building technique in Sweden, Germany, Switzerland and the USA. Own architect office.

Georg Hjertstedt, calculator and engineer with extensive experience in the construction industry and with

calculations.

Steffan Jores, interior architect and product designer

■ ABOUT US


The Building System Variation can significantly reduce construction costs, providing considerable benefits.

■ PRODUCT, IDEA


Building System Variation provides a powerful

tool for planners to respond in detail to the

client’s wishes and requirements for

implementation and for an even better economy

in all ranks.

The building system also includes new methods

for; prefabrication, assembly, production,

logistics, architectural implementation, planning,

design and cost estimates.

Unlike most existing systems for prefabrication

we take the plunge for even greater automation

in the construction process. Construction on site

is avoided.

One of our ideas is to replace interior Walls

built on-site with prefabrication.

We believe that our dynamic time in work and

family life requires a re-thinking with other

words: dynamic technological solutions of the

building constructions in a dynamic time.

Variation provides solutions to these needs

and requirements.


■ PRODUCT, IDEA

ABOUT COMPLEXITY AND ABOUT THE BUSINESS PLANBuild System Variations offering is diverse and complex.

We have therefore chosen to divide as follows into:

1. Descriptions and Illustrations (with pictures)

2. Business Plan / Action Plan (without pictures)

What is said during the illustrations for “a detached or semidetached house”

can in principle also be applied to bigger buildings. See for example what is said under:

physical environment, adaptation to nature, diversity, flexibility, etc.


■ PRODUCT, IDEA

European patent has been granted.

The coupling device is the patent’s

main claim, and where even the

installation techniques are included

in the patent.

More can be found at: www.epo.org

European Patent No. 1196668


■ PATENT

http://translate.google.com/translate?hl=sv&sl=sv&tl=en&prev=_t&u=http://www.epo.org/

■ PRODUCT, NEW TECHNOLOGY FOR PREFABRICATION


PRINCIPAL CONCERNING- ON- SITE CONSTRUCTIONS

Our proposal is to implement even better buildings by avoding expensive and

timeconsuming ”On-site constructions”,and invest instead in new holistic

solutions for prefabrication , as the Building System Variation can offer.

We suggest: methods for less waste of building material, even more effective

logistics and rebuildings (without demolition) with our unique solutions for

assembly and disassembly.

An example of construction on-site

SEE VIDEOFILM ( DOWNLOAD, “BYGGE”)



THE PATENTED BUILDING SYSTEM VARIATION PROVIDES:

• a profit of about 70%, according to our calculations, which are based on implementation of full production capacity. ( see even below “Economy/ Profit/ Investment”)

• unique technology with flat building blocks, where about 95% is done at the

factory including technical installations.

• unique methods to facilitate new constructions and rebuilding of the building.

• new approaches to environmentally friendly constructions, for example re-

use of building blocks, which saves money.



INTERIOR WALL SYSTEM VARIATION

As shown in our calculations the Interior Wall System Variation provides a

reassuring base for investment and profit, and it is a major option to implementing

the system. We propose that the Interior Wall System Variation is the technical

solution which is implemented in the first stage.

As shown in our calculations our system provides a reassuring base for

investment and profit.

The interior walls of Variation are non-bearing and vertical loads are taken up by

pillars etc.



INTERIOR WALL SYSTEMVARIATION

What happens when our homes and working-places

can’t meet the new functional requirements of those

who use them?

Today’s interior walls are often constructed on site.

The Interior Wall System Variation provides new

solutions to replace expensive and time consuming

constructions on-site with precast.

We want to avoid the high construction costs by

applying the Building System Variation, and

providing a new market with great benefits and profit

An other task is to meet the customer’s growing

demands for housing that they themselves can

influence now and in the future.

AREAS FOR APPLICATION:

FlatsOfficesDetached- or semidetached housesTemporary buildingsSchool pavilionsExhibition halls





1. No visable groove in final design2. Lintels3. Sleeper4. Interior tube electrical installation5. Interir tube for armature6. Intermediate post7. Glasdoor8. Door9. Glaspartition

PRINCIPAL SCETCH – PREFABRICATED INTERIOR WALLS WITH TECHNICAL INSTALLATIONSThe sketch is an illustration of the interior walls, mounted in a larger context. It may concern major constructions, such as e.g. housing, flexible buildings, etc. See also models, animations and video.

HOUSE SYSTEM VARIATION AND FLEXIBLE BUILDING SYSTEM VARIATION

Building frame/ Slab etc.

Building frame and slab are constructed by using

traditional techniques integrated with Variation, or with

new construction techniques.

Exterior wall

Exterior walls are designed to be carried out by Building

System Variations technological solutions or even to be

integrated with new and traditional techniques

House additions

Doors, glass partitions, windows etc. are included

respectively integrated with the Building System

Variation.

Moisture, heat, sound insulations etc. are performed with

traditional techniques respectively integrated with

Variation.VARIATION BUILDING SYSTEM//PATENT/ © PHA-GROUP KB ®


VARIETY

The Building Systems Variation consists of prefabricated wall panels with unique integrated

technological systems that provides a large variety of variations for the design.

EVEN CHEAPER CONSTRUCTIONS

This brand new concept for the prefabrication allows unlike current products, new opportunities for

faster and cheaper constructions with unprecedented opportunities for new constructions and

remodeling with better logistics.

Increased client benefit through greater freedom of choice concerning architecture and design.

The patented coupling devise allows us to install and remove any building component, without making

changes in the adjacent building elements, which saves time and money.



EXACT MODULE SYSTEM, is always maintained

For locking and dens the wall

the lockingbar is moved to

”locked position” ( arrow).

Coupling devices are available

on all sides of the elements.

For opening there is a reverse

approach. Walls are in different

thicknesses. Constructions in

wood or steel.

For more information see patent.



” FIXED POSITION”

exactly modular system always remains ( for installations etc.)

From ”open position” the

buildingelements are moved to

”fixed position (see arrow).

Constructions in wood or steel.








PRINCIPAL CONCERNING SMALL AND BIG CONSTRUCTIONS.For more information see patent.







EL-INST




EL-INST






For more information see patent

Today’s dynamic work and changing family-life provides a new context for design.

Therefore customer benefits are, that we provide technical solutions which can

alter the room’s use, appliance and design in an easy manner.

Variation provides solutions for these needs and requirements both for today’s

needs and for requirements in the future.

In other words, we provide solutions to a easy-changing physical environment in

a dynamic time.

Variation provides unique solutions to replace the construction on site with

prefabrication, which reduces costs considerably and opens a huge market.




■ PRODUCT, PROTOTYPE, MODELS

SEE ANIMATION ( DOWNLOAD)

Here the principal of assembly and disassembly is shown. Building elements are mounted with using a precise modular system, which is an advantage for the installations. The elements are connected together without making any interference with adjacent building elements. Wiring and insulation are provided but not illustrated in this animation.



SEE ANIMATION (DOWNLOAD)

The principal is shown of moving the building elements for assembly and disassembly.



SEE VIDEOFILM ( DOWNLOAD)

The prototype shows in principal how the assembly and disassembly in practice is proposed to be. Alternative methods for moving of the locking bar exists.

At the end of the movie, a testing ground for electric wiring with re-lining and bends is shown. We have developed even easier methods for re-lining than what is shown in the video.

Existing insulation, electrical wiring etc. in the building elements is intentionally here not illustrated.

In order to facilitate transport and installation, we have practically proven traditional tools, transport carts, etc.



Example of mounting with transport cart

INTEGRATED NEW AND TRADITIONAL TECHNIQUES

We want to emphasize that the Building

System Variation also can be combined

with traditional constructions and

prefabricated techniques, such as with

volume elements, large blocks, etc., and

with traditional installation technology.

In other words, in each case, we will

consider new and known technologies

to obtain optimal solutions.

BUILDING SYSTEM VARIATION APPLICATIONS

STAGE 1

VARIATIONINTERIOR WALL SYSTEM

• Apartments • Detached or semidetached houses• Offices• etc.

STAGE 2

VARIATIONHOUSES

• Row Housing• Student Housing • Temporary Buildings etc.

STAGE 2

VARIATIONFLEXIBLE BUILDINGS

• Exhibition Halls• School Pavilions • etc.


■ PRODUCT, INTEGRATED NEW AND TRADITIONAL TECHNIQUES, APPLICATIONS

MODULAR SYSTEM

• A precise modular system includes providing substantial construction

advantages for technical installations, and for assembly and dismantling.

MATERIAL RESOURCES

• With Variation demolition and waste of materials is deleted.

• We avoid expensive waste disposal and source separation, In other

words we save on resources.

• Reuse of the building blocks is an additional saving and resource.

LOGISTIC

• Reduced logistics and compact transport provides environmentally

friendly solutions and a good economy.


■ PRODUCT, APPLICATIONS

PHASE 1 PHASE 2

THE REBUILDING OF APARTMENTS RESP. DETACHED 0R SEMI-DETACHED HOUSES

Research shows that people on average move ten times in lifetime, often due to the fact that the functional requirements are not achieved, but also because of the expensive costs for rebuilding. Through our building system, new housing needs are realized without removal or major costs for rebuilding.


■ PRODUCT, APPLICATIONS

AN EXAMPLE.


■ PRODUCT, ARCHITECTURE

Through our unique technical solutions we can offer great flexibility in design, architecture,

techniques for different kind of buildings.

•We provide a building box technique in which flexible constructions can be adapted to

the users / residents needs, now and in the future.

•Traditional built houses often turn out to be too expensive to build and to rebuild.

Examples: The number of architect-designed houses is limited. The choice falls then often

to so-called "catalog houses“, with a range of house types.

•We can combine traditional technique with the advantages that the Building System

Variations provides with its great flexibility for design and techniques, and which provides

many benefits and a good profit.


■ PRODUCT/DESIGN, ARCHITECTURE

GREAT FLEXIBILITY

AN EXAMPLE OF OPTIONS FOR POSSIBLE VARIATIONS



ILLUSTRATION OF CUSTOM-BUILTLAYOUT WITH BUILDING SYSTEM VARIATION









Examples of use of prefabricated buildings with open angles:

DETACHED OR SEMI - DETACHED HOUSES

An example:Large scale construction with open angles , see APENDIX 1

SKETCH



PRINCIPAL CONCERNING SMALL AND BIG CONSTRUCTIONS

.

EXAMPLES OF USING ”OPEN ANGLES”: PARTITION WALLS IN EXHIBITION HALL



UNIQUE SOLUTIONS WITH PREFABRICATION FOR ENVIRONMENT

We provide solutions in the physical

environment, natural resources, material

resources, as well as for the external and internal

environment.

Exterior and interior environment

Through the adaptive small-scale building system

tailor solutions can be achieved, for example an

in detail personal designed prefabricated villa.

Natural Resources

Valuable and beautiful nature such as trees, rock

outcrops, etc. can be preserved. Expensive

extensive blasting deleted. The houses can be

adjusted in detail to the nature and to the site.

Diversity in the design

Building System Variation provides an almost

unlimited number of variations in the layout and

architecture.


■ PRODUCT/ ENVIRONMENT

ENVIRONMENTALLY FRIENDLY CONSTRUCTION

Construction and assembly method of the traditional houses often makes

that valuable nature ( including old trees, rocks, etc. ) are destroyed.

We provide solutions to develop and protect the valuable existing external

environment.

This method also provides a good economy.



Example of traditional land treatment

PRINCIPAL SOLUTIONS FOR PREFABRICATION CONCERNING SMALL AND BIG CONSTRUCTIONS

Examples of profitable land treatment Variation



With its significant niche that the project/patent Variation has in the market, we have calculated that a large percentage of

the total market can be claimed for Variation.

As part of our inventory of the market, we have consulted various companies in the construction sector as contractors,

architects, clients etc. - which have shown that they have an expressed interest in the Building System Variation.

The following markets could be added in this calculation :

• flexible buildings, exhibition halls, school pavilions, temporary buildings, etc.

The Swedish market- an example

In Sweden, the total market for apartments, detached and semidetached houses and offices is to equivalent

approximately 1 400 000 wall units per year,

• The market share of the utilization of full production capacity varies between about. 0.5% for Phase 2. and about 3.2%

for Phase 4A, 4B.

An example:

• Calculated market share of only apartments including detached and semidetached houses are about 3.4% for phase 3.

Data produced by Statistics Sweden, Building and Planning and Construction Survey


■ MARKET

Foreign markets- an example

Through the patents in Europe, we have access to

several markets in Europe. The calculated total market in

Germany alone, where we have a patent, is about 10,5

million interior wall panels per year, (number of square

meters per year gives number of wall panels per year,

size of 1.2 mx 2.4 m).

Summary-market shares

Changes the market for Variation depending on the

application of the project. Market shares are generally

speaking very large, and in our calculations there is no

"ceiling" that limits its scope.!

In our calculations we have devoted considerable

resources and money for a profitable and successful

order input.


■ MARKET

INVESTIGATION

An investigation has been done of existing building

systems to clarify what could be done even better with

the Building System Variation.

The reported control points were that Variation, compared

with traditional buildings, provides a positive result.

It was found that there were still better solutions and

economy with our system.

This is even done when Variation replaces the current

designs or works as a complement to existing methods

for construction.

Verification points deals with everything such as

environmental issues, new constructions and costs for

reconstructions, product-cycle, analysis, transportation,

design and architecture.


■ MARKET/STATE

NEW CONSTRUCTION OF INTERIOR WALL, INTEGRERATED WITH TECHNICAL INSTALLATIONS

LIT

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EX

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ITY

GR

EA

T F

LE

XIB

ILIT

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WALL NOT INTEGRATED WITH TECHN. INSTALLATIONS

WALL INTEGRERATED WITH TECHN. INSTALL.

VARIATION WITH TECHN. INSTALL.

PARTITION WALLS AND TECHNICAL INST. SEPERATLY

PARTITION WALLS

INTERIOR WALLCONSTRUCTED ON-SITE


■ MARKET/STATE, POSITIONING

DETACHED- OR SEMIDETACHED HOUSES

LIT

EL

VA

RIA

TIO

NS

LA

RG

E A

MO

UN

T O

F

VA

RIA

TIO

NS

EXPENSIVECHEAP

VARIATION

CONSTRUCTIONON-SITE

BIG BLOCKS

VOLUME-ELEMENTS



RECONSTRUCTION OF INTERIOR WALL

HA

RD

TO

D

ISM

AN

TL

EE

AS

Y T

O A

SS

AM

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EXPENSIVECHEAP

VARIATION WITH INTE-GRATED TECHNICAL INSTALLATIONS

PARTITIONWALLS WITHOUT

TECHN. INST.

PARTITION WALLS WITH

TECHN. INST.

CONSTRUCTION ON-SITE



Customer benefits are given to the contractor / house suppliers through the

competitive advantages that Variation provides.

Customer benefits are also given to the users, property owners, architects,

builders, people at the workplace.

Today's dynamic work and changing family life provides a new context for

planning in architecture, in engineering and installations, which opens a huge

market for Variation, and offers great advantages and benefits to customers

and house supplier.

Customer benefits that we provide cover thus techniques which can for

example easily change the room's use, and device design.

Variety provides solutions for these needs and requirements both in terms of

current and future conditions.

In other words, we provide dynamic solutions in a dynamic time.


■ MARKET/CUSTOMERS

SOME EXAMPLES:

Traditional constructions on site

Partition walls (mainly for offices)

Big blocks, prefabricated as “flat" elements .

Volume elements

Small blocks

There are few small block systems on the market. They are without technical installations assembled

at the factory. An example: cold rooms, building system for disaster areas, old systems for interior

walls.

In order to seal the joints the entire small block is moved towards the seals. Unlike Variation where

you only move on the locking-bar to lock and seal.


■ MARKET/ TRADITIONAL BUILDING CONSTRUCTIONS, COMPETITORS

SOME EXAMPLES OF TRADITIONAL PREFABRICATION FOR SMALL AND BIG BUILDINGS

The variation off layouts concerning these

traditional buildings for prefabrication is

relatively limited

1.Big blocks for external walls

2. Interior walls built on – site.

•Exterior walls are mostly prefabricated.

•Assemble is done with large cranes.

•Interior walls are for the most part built

on-site.

CONCERNING SMALL AND BIG

CONSTRUCTIONS


■ MARKET/TRADITIONAL BUILDING CONSTRUCTIONS, COMPETITORS

3. Volume elements

•Through the big volume elements about 95% is made at the factory. Large transports and assembly with large cranes are implemented.

4. Small block systems

•There are few small block systems on the market. They are without installations and made at

factory. Example: cold rooms, buildings for disaster areas, old interior walls etc.

•In order to seal the joints the entire small block is moved, unlike Variation where you only move on

the locking-bar to lock and seal.



CONTROL POINTS FOR VARIATION

A comparison with traditionally based constructions

1. Possibility to influence the constructions 2. Possibility to affect the reconstructions. even better architecture 3. Even better external environment 4. Even better internal environment 5. Nature saved (less burst) Material Resources 7. Demolition minimized 8. Waste with building on- site reduced 9. Recycling implemented 10. Easy transporting, flat wall panels11. God for container transport 12. God for global manufacturing 13. God for small and narrow transport routes 14. New methods of prefabrication 14. About 95% is done at the factory without installations 15. About 95% is done at the factory with the installations 16. Easy to assemble

17.Easy to dismantle 18. Assemble with big cranes19. Assemble with small cranes, respectively hoists 20. Great time gain on the construction of interior walls, and lower construction costs 21. Great time gain on the reconstruction, and lower reconstruction costs 22. Greatly reduced demolition when rebuilding 23. Small measures when reconstructing 24. Can be integrated with other building systems 25. Construction on- site is avoided to save time and money26. Lower costs for apartments27. Lower costs for offices 28. Lower costs for detached or semidetached houses

The quality control has indicated that the project Variation concerning the examples provides even better solutions to the economy , to contractors and customers.



For the Building System Variation we have obtained preliminary offers

of alternative manufacturing processes for a production line, and have by

proposal divided the project development in 4 stages adapted to the

various production options.

PHASE 1 - Is done! (patent, full-scale model, investigations, etc.) PHASE 2 - Production by a mini-option PHASE 3 - Production by a between-option PHASE 4 A, respectively. PHASE 4B - Production by a maximum-option


■ MARKET/ LAYOUT, PRODUCTIONLINE

BASIC INVESTMENT PAYOFF TOTALPROFIT/YEAR

PHASE 2 about 0,3 milj. EUR about 12 months about 0.7 milj EUR

PHASE 3 about 1 milj. EUR about 24 months about 2,2 milj EUR

PHASE 4 A about 1,6 milj. EUR about 6 months about 4,7 milj EUR

PHASE 4 B about 2,4 milj. EUR about 24 months about 4,7 milj EUR

BASIC INVESTMENT AND PROFIT FOR NEW BUILDINGS ,GI a

Project / patent Variation has a major niche in the big markets in Sweden and abroad. Our investigations and calculations suggest that the investments will make a significant profit.

Phase 4A is based on the expansion and supplementing of Phase 3 in regard to machinery and the area in existing

plant/building


■ ECONOMY/PROFIT/ INVESTMENT

BASIC INVESTMENTS AND PROFITS FOR SUPPLEMENTING EXISTING PLANTS / BUILDINGS, GI b

It is certainly interesting if we can use area in existing plant/building with some additions, to further

reduce the cost of the initial investment.

TOTAL BASIC INVESTMENTS , GIb:

about.0,1 million EUR for Phase 2 , and about 0,2 million EUR for Phase 3.

PROFIT : about 0,7million EUR per year for Phase 2.

PAYOFF: Payoff after only 6 months in implementing the mini- option, Phase 2.


■ ECONOMY/PROFIT, INVESTMENT

PROPOSED SHARE OF PROFITS

The project / patent Variation has a significant niche in the major markets in

Sweden and abroad.

Our investigations and calculations suggest that the investment will yield

significant benefits to the contractor / house supplier which represents about

50% of the total profit.

The other profits are distributed to about 40% to the investor including

innovator, and about 10% to the client for lower building costs. Payoff is

relatively short.


■ ECONOMY / PROFIT

EXIT-CONCERNING PROFITS

EXIT AT THE MULTI-STAGE IMPLEMENTATION

We propose that the EXIT takes place at a time when a Phase is released for the next Phase.Of course, other times for Exit can be selected. As we demonstrated above, the timing of Payoff is relatively short.

We suggest that according to our calculations, the profit –sharing ( about 50%) goes to the contractor / house provider with:• about 0,4 million EUR / year at the conclusion of Phase 2• about 1,1 million EUR / year at the conclusion of Phase 3• about 2,4 million EUR / year at the conclusion of Phase 4A, respectively phase 4B

As our proposal the rest of the profit-sharng ( about 50%) goes to the investor, innovator , consultants,, lower costs for the client. etc.

Timing of exit will take place in:• approximately 1 year, PHASE 2• approximately 2 years, 3 PHASE• approximately 1 year, PHASE 4A, and 2 years, PHASE 4B


PHASE 2 Mini-option

Basic investment :about 330 000 EUR

Payoff: about 1 year

Earnings per year: about 7 400 000 EUR

(about 64%)

Capacity: about 10 000 wall panels / year

Mini-option has the full use of capacity at max. profit of about0.7 million EUR per year. Payoff is

expected to occur after 1 year of production. Mini- option is based on a production of about 50

running meter ( rm )/ day, equivalent to approximately 32 000 square meters per year, which means a

maximum capacity of about10 000 wall panels per year.


■ ECONOMY/PROFIT, OPTIONS

-1

-0,5

0

0,5

1

1,5

2

year 0 year 1 year 2 year 3 year 4

mil

lio

n E

UR

year of production

Result mini-option

income

costs

net profit

year 0 year 1 year 2 year 3 year 4income 0 0,8 1,5 1,5 1,5costs 0 -0,4 -0,8 -0,8 -0,8net profit 0 0,4 0,7 0,7 0,7

Basic investment 0,3 million EUR. Payoff about. one year



Based on, the between option with an initial investment of about 1 million EUR has manufacturing,

as a suggestion, due to a “soft landing” an over-capacity on the first and even third year. Payoff is

expected to occur after about 3 years when the balance of revenues and expenses is paying the

initial investment. Without “soft landing” is payoff approximately 2 years.

PHASE 3, between- option

Basic Investment: about 1 million EUR

Payoff: about 2 1 / 2 years

Profit per year: about 2,2 million EUR

(about72%)

Capacity: about. 32 000 wall panels / year

Full profit at first at full production

capacity.See below



-3

-2

-1

0

1

2

3

4

5

year 0 yearr 1 year 2 year 3 year 4 year 5

mil

lio

n E

UR

year of production

Result between-option

income

costs

net profit

year 0 year 1 year 2 year 3 year 4 year 5income 0 0,8 1,5 2,2 4,5 4,5costs 0 -0,4 -0,8 -1,1 -2,3 -2,3net profit 0 0,4 0.7 1,1 2,2 2,2

Basic investment 1 million EUR.

Payoff about. third year ”soft start”

Payoff about. second year without ”soft start”

■ ECONOMY/PROFIT/ OPTION


PHASE 4 A,B Max-option

Basic Investment: PHASE 4A, about. 1 600 000 EUR

and for Phase 4B about 2 400 000 EUR

Payoff: about 4 months resp. 6 months.

Total profit per year: about 4 700 000 EUR

Capacity: about 64 000 precast elements per year



Result max-option

-6

-4

-2

0

2

4

6

8

10

12

year 0 4 months year 1 year 2 year 3

year of production

millio

n E

UR

income

costs

net profit

year 0 4 months year 1 year 2 year 3income 0 3,2 9,6 9,6 9,6costs 0 -1,6 -4,9 -4,9 -4,9net profit 0 1,6 4,7 4,7 4,7

Basic investment phase 4A 1,6 million EUR. Payoff about four months



CAPITAL NEEDS

Based on preliminary bids and related documents (please see the attachments), we have established

the basic information on investments, profits, payoff times etc. for the various production options /

phases.

• To complement existing local / factory implementation requires a capital investment ,mini-option

PHASE 2, of about 0,1 million EUR , see basic investment ,G1b.

• For a new building and machinery, mini-option PHASE 2, requires a capital investment of about

. 0,3 million EUR, see basic investment ,G1a.

• In the long term we are looking for capital based on a gradual expansion of the previously

announced phases, or direct investment in the more productive phases 3 respectively 4A, 4B.

• The profit accrues to contractor respectively to the investor, innovator, as well as to those who are

using the Building System Variation.


■ ECONOMY/PROFIT, CAPITAL NEEDS

CAPACITY

Between option, Phase 3, as an example:

Through the between option, Phase 3, are 150 running meters ( r. m.) produced per day. This is equivalent

to (150/1.2 = 125) 125 wall panels per day. These interior wall panels have a dimension of suggested

1.2 x 2.4 m.

With estimated 260 effective working days per year produces about 32 000 pieces of wall panels per year,

which produces the basis for our calculations.

Maximum number of effective working days per year has not been included and represents a significant

reserve of the capacity .

COST OF PRODUCTION

The cost of production for between option, Phase 3, ca 2,4 million EUR. At an annual production of about 32

000 wall panels the “unit price” for each element is about 75:- EUR.

PRICE OF SALE

In this calculation, we have followed common practice that the sale price is equal twice the cost of

production, i.e. in this project 150:- EUR per wall panel.


■ ECONOMY/PROFIT, CALCULATIONS

ALLIANCES - With regard to production

Contractors and house suppliers have declared that they are willing to produce the project Variation when assignment exists.

Construction companies/builders and clients/property developers/landlords Several of these actors are interested in the implementation of the Building System Variation.

Architectural offices

Several architectural offices we have been in contact with, in the current on going

projects, are interested in providing a base to the implementation of the project

Variation.


■ OUR SOLUTIONS PROVIDES

CO-OP ALTERNATIVES

License/option contract

Option/license agreements can be signed with regard to the parties’ objectives, the commitments, etc.

These agreements can also be adapted to the current Phase for which the manufacturing is intended

for.

We are even open to various forms of tenure (even other than licens )

Company

As an option we offer significant shares in the company according to parties’ commitments, and

where the share of the builder/house provider, as a suggestion, can add up to about 50% of the

company. We propose that your company becomes a partner in the patent and Building System

Variation with significant influence on the economy, production and implementation.

Exit

We give suggestions for appropriate times to “exit” with appropriate times by profits. See

what is mentioned above under “EXIT”. Consultants

For construction documents, we plan that the implementation, and its economy ,is in consultation with the investor / contractor.



SUMMARY

Building System Variation provides a powerful tool for planners to respond in detail to the client’s wishes and requirements for implementation and for an even better economy in all ranks.

The building system also includes new methods for production, assembly, logistics, architectural implementation, planning, design and effective methods for cost estimates.

Construction on site is avoided.

Unlike most existing systems we take the plunge for even greater prefabrication and automation in the construction process. It provides big overall advantages and profits.

Today’s dynamic work and changing family-life provides a new context for design. Therefore in respect to customers benefit we provide technical solutions that easy can alter the room’s use, appliance design etc.

Variation provides solutions for these needs and requirements both for today’s needs and requirements for the future. In other words, we provide solution to an easy-changing physical environment in a dynamic time.



BUILDING SYSTEM VARIATION OFFERS UNIQUE SOLUTIONS:

• to big profit for contractors, investors and the clients.

• to significantly lower construction costs for new construction as well as for rebuilding.

• to optimize the technology for prefabrication.

• to dynamic construction and installation techniques.

• to have more choice regarding architecture and design.

• to increase contractor and customer benefits by opening up new markets and generating substantial profits.

• to still improved methods of handling and transport of prefabricated elements.


■ SUMMARY

Documents

Variation b s 2012 11-11