first questions that generally come from financiers. it’s

_______________________________________________________________________________________________

6900 Boul. Gouin Est, suite 1201 Montréal, QC, Canada H1G 6L9 T.514-609-4799 F.514-903-6950 [email protected]

FAQ for investors is a sells pitch that answer the very first questions that generally come from financiers. It’s a direct presentation that is also a good introduction to our formal business plan. ( Questions come from our registration to the Postcode Lottery Green Challenge 2010© in May 2010.)

Q. What is your business proposition?

We believe that green renewable energy will really grow strong when it will become profitable for users without any subsidies. We wish to offer a package of green energy solutions that will be a profitable investment both for individual and enterprise. Our basic principle will be to offer wind turbines customized for specific applications, like urban, rural or on building installation. This green energy will be managed by a system that will optimize utilisation cost from all the energy sources available. This energy system will favour synchronization whiten random energy sources and specific energy utilisation, including reloading of electric car or reselling excess of the produced energy at peak hour. Postcode green lottery can enable us to present and commercialize the centre element of our package: THE URBAN WIND TURBINE. Whatever can be said by corporation that sell small wind turbine; there is none of their apparatus that can be install everywhere without resistance from close neighbour*; and a small wind turbines cannot supply the complete energy needs of a house.

_______________________________________________________________________________________________ 6900 Boul. Gouin Est, suite 1201 Montréal, QC, Canada H1G 6L9 T.514-609-4799 F.514-903-6950 [email protected]

All the moving part of our urban wind turbine is enclose in the apparatus. Thus our electricity generator is not awkward, produce very low noise and can be large enough to supply all the require power of a house and an electric car. *Except last year winner of your contest. This wind turbine will be very efficient when the wind will be in row.

Q. What makes your product/service special, and why is it needed? Imagine that you are at the window of the 25th floor of a building right in the centre of a large city. By clear weather you may seen 15 Km of buildings, roads and houses. How many wind turbines can you count from there? None! Now imagine if we can install 100 Mwatts or efficient wind turbines in this same area. This is possible with our urban wind turbine concept ! And this is the first reason that makes this product special. Here is a short resume of the best strengths of our urban wind turbine: - It is quiet and not awkward. As all moving parts are in closes, the apparatus seems immobile and the noise of the turbine is absorb by the structure. - It is large enough. As it is easy to install on existing building, it can harness 15 to 25 square meters of wind to supply 100% of the needs of a house. - It is profitable for users. As the energy is directly use by owner, the profitability is base on end user electricity cost. - The two sides flat panels can be decorated or use to increase revenues by advertising. - It will be easy to finance by mortgage as the apparatus will be attach to the building and have a 50 years expected lifetime.


Q. How will your product/service reduce greenhouse gas emissions? Our impact on greenhouse gas emissions should be consider on two levels: 1- The direct implantation of our urban wind turbines that could be made possible with the postcode lottery help. 2- The full realisations of the Wind-Do project that will follow in time the start-up. Either install on house, store or factory, the urban wind turbines will replace the purchase of electricity by 100% green energy. Direct impact will vary whiten location, but we calculate that a 20 square meters wind turbine will spare an average of 32.5 tons of CO2 every year. First wave of implantation will come from mid size factories and stores install in residential sector, as per the picture and the case study show in our web site. Residential wind turbine will grow strong with the expected electric car. Production of urban wind turbine will be done by us in Canada, by many registered partners worldwide and by anybody that will propose variations of our concept. As it will be profitable for user and easy to finance, it is not exaggerate to forecast a million of those apparatus installed in 12-15 years. A complete evaluation of the impact of the Wind-Do project against greenhouse gas emission must take in account that we put on market a new generation of wind turbine and a new way to manage the production of green energy. We believed that our innovations and the philosophy that we will put head could have a significative impact on primary energy market.


Q. Explain the production and development process. To understand our concern regarding development process, you must first read the corporative mission of Wind-Do: "The mission of the company is to support, in a independent way, the technical evolution of the renewable and clean power production at the scale of the planet." "The company will develop innovative products related with the management and the production of clean energy. She will make the promotion of its products and will conclude international agreements for manufacturing in return of smalls royalties." "The company will act in a proactive way to support synergy between its customers and when required, she will provide consulting services for engineering and merchandising of theirs products." In other words, to become and stay a world leader in green energy evolution, we will have to continuously improve both our products and the way to produce them. The Research and Development team of Wind-Do will be the heart of the corporation. As the most important cost of green energy production is the purchase of the apparatus; we target in short-med terms to establish a large production factory that will crunch production cost with large-scale purchase economy and automation of production. At the beginning, the production of urban wind turbine will simply be the assembly of subcontract parts. Base on our main presentation, the first product we will put on market is the trapezoidal urban wind turbine. Note that we will not propose our products on international market until we will be able to optimize them.


Q. What do you need besides money to turn your idea into a successful product or service?

Some of the most new success stories are Internet applications that have been develop in the basement of the home of their founders. Energy start-up, as most of the business opportunity, cannot be set without money. Wind-Do path is clearly established as it can be seen in our presentation and money is the only thing that stops it to go head. Beside money, two things will be capital for the success of Wind-Do: - The construction of a strong multidisciplinary team of professionals that will make the realisation of the Wind-Do mission possible. - The establishment of a network of partners that will gain with the progression of Wind-Do. Our business plan explains in details the working team we wish to build. For us the communication, the marketing, the engineering, the intellectual property and the administration/financing teams are all essentials to the achievement of the Wind-Do objectives. Both shareholders and customers are essential partners for the Wind-Do grows. We are looking for Internationals Corporations to invest in Wind-Do both in regards of the potential money return and their interest that our products can have for their own business. For example wind farm administrator, car or batteries builder, international engineering consultant, etc... Win the postcode contest can help us in that matter as much as the starting money it provides.


Q. Introduce yourself and your qualities and explain why you are the person to successfully realise this idea. My name is Francois Gagnon (Frank) I am an industrial engineer graduate in 1979. Since my graduation, I almost always have been involved in management, mainly of production factory. I have been engage in the shareholding of many of the corporation I have work with. I have been general manager and/or CEO of the corporation I work with for the last 22 years. I am a man of vision. I can see the needs of the market, or of one specific customer, and design product that will overfill expectations. I design thing like an engineer, with aesthetic but with concern on fabrication process and production cost. My records include design of machinery that always had work as expected.

Q. Who is on your team, and how are you organized? As we are at funding stage, there is no employee involve yet. The way we wish to build our team is well details in our business plan. If we win the postcode lottery we will be able to start the first portion of our business plan, centre on urban wind turbine. As we will then have a good exposure, we may received clear interest signal from investors and decide to assemble our team as if we are completely financed. Otherwise we will hire consultants on temporary base to achieve only the task in regards of the urban wind turbine. This solution is more conservative but have the disadvantage to lost our investment in formation.


There is one point we like to establish here. This is relatively easy to build a strong task force around a good leader with experience and vision. The reverse is not true. The best marketing manager, the best team of engineers of the best controller needs to be centre on the objectives of the corporation, in Canada we say to make them push in the same direction. Note that it is not only a question of leadership; the great corporations grow with the vision of their CEO. There is thousand of researchers that work on the evolution of the wind turbines since decades, with the only result that they make bigger and bigger tri-blades machines that nobody want in their backyard. For now we have a man with vision who's ready to build the Wind-Do team.

Q. Have you involved technical and/or financial partners?

For the moment the technology is control by the founder that own the patents pending related to the project. No other technician is involved. Regarding financial partner, we are at the beginning of the funding process. We are in search for several investors that can either seed money or have technological interest in our venture. We estimate that complete funding process may be spread over 15 to 24 mounts. According to your terms and conditions #3, we will advise the Postcode Lottery by written if new partner joint Wind-Do before the end of the competition.

Q. Which other stakeholders will be involved in your business? As we are at the beginning of the funding process, it is difficult to say who will be involved in Wind-Do.


As the founder have only a small amount of money to invest, he's expect to become a minority partner at the end of the funding process. For now, it is forecast that no shareholders with have a majority of share. The board of direction will make all the important decision. It is also plan that every shareholder with significative participation will have a voting voice on the board of direction.

Q. Specify your target market and why you selected this specific market.

- Describe the main characteristics of your potential customer base and their demand. - Explain why you selected this specific customer group/s.

The market focus by Wind-Do is vast and open for refreshing ideas. Our basic assessment is that humanity will have to invest at least 1,200 billions dollars per year for the next 50 years to reach 50% of green and renewable primary energy. We also make the hypothesis that 80% of the 50 millions cars build each year will be electrics in 15 years, which is not realistic with actual technology but probable with ours innovations. All this is detail in our business plan. We have choose the urban wind turbine as the first market segment that Postcode Lottery may help us to set on. This market is empty. For now nobody can offer a wind turbine that will harness 20 Sq.m. of wind at 20 meters of living space. Our urban wind turbine can achieve that. Our apparatus is as simple to install as a small advertising panel, and not more awkward of it. It can be install on the roof of a house, a school, a store, and a factory, or even on a mass beside the road. What is the market potential? In a conurbation of 5000 Sq. Km. (like Montreal) we may install 1/2 million of those machines over 50 years, and


most probably another 1/2 million of our others wind turbines. This is a potential of 10,000 Megawatts. We need first to install a dozen of it and show them to the world.

Q. Describe the structure of your target market: - main competitors, suppliers, other companies; - similar or complementary products or services; - market share held by other players.

Competitors: We can say that we have no competition as what is proposed is not relevant. A small tri-blades wind turbine at 25 meters of your house will make same noise than a giant one at 500 meters. Imagine now a tri-blade of 5 meters in diameter! Vertical axis machine are said to produce less noise, but they are also much less efficient that tri-blade one. To produce equivalent energy, your vertical generator may be as big as 4 meters in diameter by 10 meters high! Will this produce less noise? And how awkward will they be? Complementary products: The options may often double your sales. We will sell the machine, but customers will also need:

- Structural advice and frame drawing customize to the supporting building. - Frame production and installation. - Apparatus installation and connection. - Transformer and rectifier, install and connected. - Energy management system and according batteries, preferably ours. - The customer may have to pay for connection to network and financing consultant.

Share of the market held by competition: Close to noting. Channel of distribution: We do not expect to sell directly our products to consumers. As every sale means a custom installation on house or building,


we will engage many small and medium contractors that will purchases their apparatus to us. This process may require freelancer salesman. When Wind-Do will be in full operation, we think that car dealer will be in best position to sell urban wind turbine, as an option to full electric car.

Q. Describe the market size and the market potential for your product or service in this target market. As mention above, our potential market is huge. Most human new that fossil combustion is a short term issues for climate, much less new that petroleum reserve will be empty in 50 years. But if you ask Google News(c) about wind turbine, a good portion of the articles will details protestation against wind farm. It's the ‘Not In My Backyard’ syndrome, and it's justified as I am concern. There is a huge vacuum for new solutions for green renewable energy. When something effective and efficient will be show in operation, the world will new it whiten a year. (And we will hire a public relation specialist to make sure of this). The above installation of urban / rural / building wind turbine on a 5000 square kilometres conurbation represent sales of 250 millions dollars per year for 50 years. The market for our rural wind turbine on rural world is an even more important segment as it's will directly challenge giant wind turbine with an half cost electricity production, this exactly where nobody want them. It is not relevant to try to estimate the word market of Wind-Do products; we will not be able to sale directly to 99% of it. But if we can collect a royalties of 1% on 50% if that production, Wind-Do will be able to achieve his mission of leadership for green energy evolution.


Q. What will your product/service cost? What are your sales targets, and how will you achieve them? We will focus on urban wind turbine for home application. To harness 20 squares meters of wind, the machine will look like a box of 5x5x4 meters. This box will be very light as it will be 75% of air, 20% of expanded polystyrene and 5% of electric generators and structure. The 10 KW urban wind turbine will cost whiten 7 to 10,000$ to produce and will retail 13 to 18,000$. This machine needs to be install on appropriate structure. This operation should cost 1,000$ in engineering, 5 to 7,000$ in structure and 3 to 5,000$ for complete installation. To this you will added another 4,000$ in wiring, transformer, rectifier and network connection. Your overall cost will then be between 26 to 35,000$ for an annual electricity production of 24 to 30,000 KWh. The best situation is an installation of 26,000$ that is finance on mortgage at 5%; you have a windy site that spare you 30,000 KWh at a cost of 18 cents. Annual cost 1,300$, saving 5,400$, benefit 4,100$ (here you may have to be able to sell your over production). The worst situation, if you pay 9 cents your electricity and 8% on your mortgage, lead you to an annual cost of 2,400$ and a saving of 2,100$. Here your investment will pay when you will have pay a part of your mortgage, or if you sell adds on both side's flat panels. A commercial case study is available on our web site.

Q. How will you inform your (potential) customers about your product?

There are two levels of presentation that will lead to good sell to customer: - The branding that wills open doors. - The selling pitch that will lead to sales closure.


As mention above, we expect to be widely published the moment we will be able to show our products in operation. We should be able to 'make our name' without important investment in publicity; the hiring of a communication specialist will ensure continuous progress of our branding. We do not wish to sell directly to end users, but salesmen of our customers will need tools to do their job. Our sales kit will include pictures of genteel installation, an easy to understand cost and revenues analysis and when possible mortgage arrangement and pre sell publicity.

Q. SWOT analysis

Indicate the internal strengths and weaknesses of yourself, your product and, if applicable, your company. Name the external opportunities and threats presented by the market, consumers, the economy, etc. Strengths

- The product is original and has no equivalent on market. Follower will need to bypass patents if they want to copy. - Diversity of potential market segment makes the possibility for grow unlimited. - Diversity of potential products allows the development of a better organization, as many costs may be spreads on several markets. Weaknesses

- The product is original and has no equivalent on the market. We will have to make demonstrations and educate our customer's prior to make any sale. - Developments of several market segments in the same time reduce cost per segment but increase overall investments that may frighten investors. - Require investment for overall Wind-Do project stand on only one person for the beginning. The needs to create a strong task force will have to be balance with budget priority.


Opportunities

- The market is vast and there is opportunity to sell worldwide. - This market is not temporary or at its peak, it will continue to grow for the next century. - The potential of the carbon exchange market can boost the profitability of our products for the end user, especially for commercial and industrial market. - The synergy we will induce in our way to do business will lead to strengthen collaboration network in green energy, and reinforce our leadership position. Treats

- The size of the potential market make that a lot of corporations have an eye on it and will rapidly try to offer equivalent product. - There is always possibility for a new, clean, renewable and affordable source of energy. For now there is noting competitive that is public. - There are a lot of international energy corporations that will invest billions to find way to compete our products.

Q. How much money do you require to realise your idea? There is two ways to budget a start-up:

- You can see what fund you have in hand and analyse what are the best investments you can do in regards of your new products. - You can also do the reverse and study the potential market of your products and which part of this market it is feasible to reach. When you have established your objectives, you determine all the resources that you will need to put things in place.

Generally these second ways to set a project lead to higher investments but also to higher sales and profitability. At this point the entrepreneur usually


have to chose whiten the control of his small corporation or being a minority partner of something much bigger. The Wind-Do presentation, business plan and pro-format statements are bases on this second way to plan business. The overall investment require for the project is thus of 18 millions dollars. That funding is expected to be close 15 mounts after the beginning of the operations, but may take 24 or 36 mounts and still achieved the original objectives. Postcode Lottery can supply +/- 650,000 Can$ that is enough to produced urban wind turbine prototype and start to selling it at a small scale. As noting can be taken for granted in funding, the business plan we will used will be as if we never get funded anymore. We strongly believed that if we win the Lottery, our new exposure would lead to the complete funding of Wind-Do.

first questions that generally come from financiers. it’s

Documents