P22 Topstep Nigeria Limited

Transcription

1 P22 Topstep Nigeria Limited CTI PFAN West Africa Regional Coordinator Albert Boateng albert.boateng@ppl-int.com Phone : (233) Mentor Segun Adaju segunadaju@blueocean-nigeria.com Phone :

2 POWER-TO-COMMERCE SOLAR PROJECT Presented by: Titi Masha September 17, 2015

3 UNLEASHING THE ECONOMIC POWER OF SOLAR Milestones and Team Business Goals

4 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%

5 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 We have several ongoing projects including a solar powered agro processing solution.

6 Project Rationale African Off Grid Market 75 mill households Nigerian Off Grid Market 25 mill households In 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

7 Project Rationale In 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.

8 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 Max AC power output Daily energy stored Basic Unit 17Ah W 2 NA 140Wh Step Up System 40Ah W 2 200W 320Wh

9 Business Model SOLAR EN-ERGY Service AS A Approach SERVICE State-of-the -art enterprise-enabled solar systems. Partner with credible farmers organizations Organized Entity 4 Franchise repayment scheme Smart Retail Kiosks and technicians

10 Business Model SOLAR EN-ERGY Service AS A Approach SERVICE A variety of sales models will be used depending on the customer base and associated credit risk.

11 COMPARISON CHART MARKET PRICE $27/month spend on replaceable Carbon by typical BOP household Topstep offers more functionality and guaranteed customer service for less $ $2 - Candles $7 Monthly savings $5 - Batteries $6 - Phone Charging Flat monthly charge $18/month $14 - Kerosene Enterprise enabled solar solution Source: GSMA, TSNL market research, *$25/month

12 THIS SERVICE CREATES AN ON-GRID EXPERIENCE Creating Wealth 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 , ,250 Grinding Stations ,500 ICT centers ,000 Barber/Hairdresser ,500 3

13 Business Model SOLAR EN-ERGY Competitive AS A SERVICE 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 )

14 Project Promoters 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. 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.

15 Project Promoters 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. 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.

16 Major Risks & Mitigation Risk Sabotage and Theft Credit Risk Revenue Recovery Mitigation Units installed in secure residential/business location within the community Insurance coverage to cover loss, damage, theft etc. Lien program against the farmers future earning 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 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

17 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

18 PAYMENT COLLECTION RELATIONSHIP WITH FRANCHISE PARTNERS Partnership Franchise Administration Franchise Members Topstep Team

19 Cost Structures LARGEST PERCENTAGE SPEND Use of Fund USD % PROJECT DEVELOPMENT Soft 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% CAPEX Material 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 COSTS Finance Fees 490,264 6% Rolled Up Interest 0 0% Legal Fees 0 0% Total Finance Cost 490,264 6% CONTINGENCY Contingency Reserve 603,015 7% Total Uses of Fund 8,592, % Material Procurement 43% Kiosks 17% Project Dev. 15%

20 Financials year Revenue Projections TOTAL (mill USD) 指数 (TOTAL (mill USD)) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, year Revenue Stream Contribution Lease Outright sales Credit Sales

21 Financials

22 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.

23 Titi Masha