DISCLAIMER
While the information herein is believed to be accurate, Acro Energy Technologies Corp. (“Company”) together with its respective directors, officers, employees, agents, and partners, expressly disclaim any and all liability for representations or warranties, express or implied, contained in, or for omissions from, this overview or any other written or oral information transmitted by or on behalf of the Company.
The information contained herein, while obtained from sources we believe are reliable, is not guaranteed as to its accuracy or
completeness. The content of this presentation is for information purposes only and does not constitute an offer to sell or a solicitation to purchase any securities referred to herein.
This presentation includes certain forward-looking statements about future events and/or financial results which are forward-
looking in nature and subject to risks and uncertainties. Forward-looking statements include without limitation, statements regarding the Company’s plan, goals or objectives, and future plans and objectives of Acro Energy Technologies Corp. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “continue” or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Potential investors should conduct their own investigations as to the suitability of investing in securities of Acro Energy Technologies Corp.
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ACRO IS A MARKET LEADER
A leading retail renewable energy solutions provider, having sold and installed >2,000 solar energy systems to date
Helping consumers reduce their power consumption costs by engineering, installing, and arranging the financing for renewable energy systems at customers’ facilities
Delivering the best customer experience, using highest-quality, most cost-effective technologies and financing solutions available in the market
Growing organically and via acquisition to create the largest, most profitable down-stream renewable energy company in the United States
Maintaining high-talent, low-cost shared service operations at our headquarters, supporting locally-focused sales, installation, and customer service operations in Arizona and California
Acro Energy Technologies’ industry-leading results
3 7/14/10
≈297% annualized organic growth in Q210
#4 largest retail solar
integrator in California DEC09 out of 750
>35% gross margins in Q210, higher than all public
compeAtors
Posi0ve Net Income
achieved in Q210
STRONG SOLAR INDUSTRY FUNDAMENTALS
Decreasing costs Upstream investment in solar technology capacity is lowering system prices Wholesale module prices have fallen by approximately 50% in 24 months Government incentives—federal tax incentives and state rebates—are spurring consumption
Fragmented competition ≈60% of our market is serviced by small, sole-proprietorships in California Expansion markets are dominated by small firms
Expanding market Utility-provided power prices are high and increasing Global commodity demand and domestic renewable energy standards are increasing wholesale
prices Distributed solar power is a money-saving option for more consumers Solar is economical for approximately 3.5 million single family households in California
Creating opportunity Most solar integrators lack cost-effective customer acquisition and installation capabilities None have the economies of scale and scope to deliver solar to thousands of customers Without achieving effective operating leverage most competitors will shrink
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market
costs
opportunity
fragmented
SOLAR IS NOW A MIDDLE CLASS PRODUCT
Affordable financing dramatically expands the residential solar market <20,000 customers buy residential solar electric systems in the US with cash or debt Average single family homes in CA have >$150/month electricity bills Buying power from an Acro system is affordable and effective for middle class
customers because of our financing solutions
Making solar a smart purchase for ≈50% of California’s 7MM single-family homeowners
Homeowners start saving with solar for $1,000 down Save >10% on electricity bills >$150/month Purchase the power from an Acro Energy solar system Financing through SunRun and US Bancorp
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LED BY AN EXPERIENCED TEAM
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Marty Spake – Chief Financial Officer Public company experience at Chicago Bridge and Iron Co (NYSE: CBI) Vice President, M&A, Investor Relations, and Strategic Planning at CB&I Stanford University MBA and United States Military Academy BS
Harry Fleming – Chief Executive Officer, Director 25 years M&A, numerous rollups in the service sector such as BFI and Allwaste in the waste business- both billion dollar companies listed on the NYSE
Recent rollup of health care centers in Houston as principal - IPO at $175MM on TSX
Boston College MBA and University of Houston JD
Nat Kreamer – President, Director Founder, President, and COO of SunRun, pioneering and leading provider of residential solar finance Grew SunRun to become the largest residential solar financing company in the US in 24 months, raising $117MM in venture capital and tax-equity, structuring and managing partnerships with the largest
US solar integration firms Rice University MBA, Northwestern University BS, Afghan war veteran, and Bronze Star Medal recipient
GROWING EXISTING BUSINESSES
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Q1 ‘10 Results $3.8 MM revenue achieved 120% annualized growth $100+k positive ebitda Due to seasonality, Q1 revenues
typically are ≈14% of annual revenues
Q2 ‘10 Results ≈$5MM in sales back-log $5.4MM Revenue 297% increase in year over year
quarterly revenues $200-300K Net Income Expected $300-400K ebitda Q2 revenues typically are ≈22%
of annual revenues
Q3 ‘10 Guidance $7.5MM Revenue $700-900K Net Income $800-1,000K ebitda
1 Reflects Company’s guidance pending the filing of second quarter financials
2010 YTD1 2010 2011
Revenue $ 9,200,000 $ 24,000,000 $ 40,000,000
Cost of goods sold 14,880,000 24,800,000
Gross profit 9,120,000 15,200,000 Approx. 38% 38.0% 38.0%
Operating expenses Sales & Marketing 1,950,000 3,200,000 General and administrative 4,700,000 6,400,000 Depreciation 160,000 200,000
Total operating expenses 6,810,000 9,800,000
Operating income 2,310,000 5,400,000 9.6% 13.5%
Interest expense 550,000 550,000
Income before income taxes 150,000 to 250,000 1,760,000 4,850,000
Income taxes - - 2,044,476
Net income 150,000 to 250,000 1,760,000 2,805,524 7.3% 7.0%
EBITDA 450,000 to 550,000 2,470,000 5,600,000 10.3% 14.0%