Z Ships Presentation Oct 2015
- 1. Z SHIPS INTERNATIONAL CCC LTD. PRESENTATION October, 2015 VANCOUVER CANADA ZERO Fossil fuel ZERO Emissions ZERO Fuel costs
- 2. You see waves; what you are really looking at is ENERGY in motion
- 3. PROBLEM Emissions regulations Future strict environmental standards Customers and Public opinion about Air and Water Pollution and Climate change Upcoming CO2 emissions targets
- 4. SOLUTION Z SHIPS ZERO Fossil fuel ZERO Emissions ZERO Ongoing fuel costs
- 5. Using a combination of: Proprietary Wave Energy Conversion Technology Solar panels Wind (sails & turbines) Magnetic engine generators SOLUTION
- 6. TEAM DIRECTORS Jose Luis Gutierrez-Garcia, Regenerative Solutions Juan Pablo Maureira, Engineer, Business Development Laurent H. Selles, Patents Expert & WIPO Green Advisor Roy Wagner, Inventor, Project Management ADVISORS Jaime Quadra-Salcedo, Naval Architect and Marine Engineer Matthias Kempen, Ship and Environmental Engineering LEGAL Selina Lee-Andersen, Lawyer with McCarthy T辿trault
- 7. CORPORATE STRUCTURE ACTING C SUITE UpGyres 油 油 Not 油for 油Pro鍖t 油 59 油% 油Equity 油 Juan 油Pablo 油 Muareira 油 COO 油 Laurent 油Selles 油 CIO 油 Roy 油Wagner 油 CTO 油 Z 油Ships 油CCC 油= 油 B-足Corp 油 Jose 油Luis 油Gu鐃errez-足Garcia 油 CEO, 油CSO 油 Class 油B 油Shares 油 Investors 油 25 油% 油Equity 油 Class 油C 油Shares 油 Stock 油Op鐃ons 油 16 油% 油Equity 油
- 8. VISION To replace the use, costs and emissions of fossil fuels with renewable energy, electricity and storage.
- 9. BACKGROUND The market wants to buy: New energy-efficient systems for production, storage and conversion of energy. Functionality (a complete system) and not components.
- 10. COMPETITION LNG ship retrofits ROLLS ROYCE Hydrogen Electric Hybrid using diesel generators MAN DIESEL & TURBO SIEMENS Z Ships competition offers savings of 40% to 50% in fuel costs and reduced emissions.
- 11. DEMO
- 12. MARKET DATA
- 13. COMPETITIVE DATA FISHING SHIPS max. 499 GT Tons/year Euros/Ton Euros/year Can $/year Fuel Oil cost (euros/ton) 480 Fuel Oil Consumption (250 days/year): 1,500 Fuel Oil cost (euros/year) (Can $/year) 720,000 983,722 LUBRICATING OIL 5 21,600 29,512 TOTAL FOSSIL FUEL COST 741,600 1,013,233 COST TO RETROFIT ONE FISHING VESSEL 4,391,486 6,000,000 ROI in Years 6 Note: Fuel consumption of 5 trips of 50 days each = 250 days/year
- 14. GO TO MARKET PLAN ZSHIPS was a finalist at Our Oceans Challenge - Global acceleration platform for new ocean ventures. We are already marketing and promoting our products. Funding will allow us to build ZSHIPS brand awareness and marketing campaigns. We will use the Zship prototype for marketing voyages. A round the world voyage will attract press and media attention globally.
- 15. BUSINESS MODEL Customers Fuel savings: 100% Emission reductions: 100% Payback: 6 years Opportunity Costs & Revenues per year / per Z Ship: $2,404,411 Opportunity Costs & Revenues in 30 years / per Z Ship: $72,132,335 Low OPEX for 30 years Investors Steady growth every year (first 7 years) 10 % growth rate from year eight (8) Breakeven: 2.06 units NVP at 10 % in 10 Years: $181.4 Mi CAD
- 16. FINANCIALS CASE N尊 Retrofitted Ships at (10) N尊 New Ships at (10) NPV Can $ after taxes (10) NPV Can $ after taxes (6) TIR ROI after Taxes % CASH FLOW Can $ after taxes (10) W- Worst 80 0 108,761,113 43,991,554 106% 29.16 199,317,021 R - Realistic 123 0 181,371,074 55,983,422 147% 52.53 343,287,798 A -Aggresive 160 5 237,956,018 57,560,396 120% 68.16 465,870,798 SA 160 10 242,445,576 59,583,539 121% 69.32 473,768,117 -$6,534,650 $7,594,064 $5,963,605 $15,764,116 $24,827,329 $35,245,310 $46,970,172 $59,968,484 TOTAL REVENUES $ - $ 19,976,210 $ 27,420,782 $ 55,938,396 $ 78,453,601 $ 101,847,038 $ 126,144,831 $ 151,373,797 $ 169,841,401 $ 188,987,158 TOTAL COGS EXPENSES $ 4,710,000 $ 7,056,000 $ 13,406,400 $ 25,472,160 $ 33,273,009 $ 40,230,093 $ 46,408,286 $ 51,868,084 $ 54,202,148 $ 56,173,135 TOTAL OPERATING EXPENSES $ 765,650 $ 3,231,635 $ 4,283,647 $ 7,927,475 $ 10,812,427 $ 13,779,567 $ 16,845,074 $ 20,013,151 $ 22,324,664 $ 24,713,879 TOTAL STAFFING EXPENSES $ 1,059,000 $ 2,094,511 $ 2,527,774 $ 3,992,742 $ 5,159,543 $ 6,372,308 $ 7,632,445 $ 8,941,404 $ 9,914,670 $ 10,924,338 TOTAL EXPENSES $ 6,534,650 $ 12,382,146 $ 20,217,822 $ 37,392,377 $ 49,244,979 $ 60,381,967 $ 70,885,805 $ 80,822,639 $ 86,441,482 $ 91,811,351 TOTAL COST PER SHIP $ 6,534,650 $ 6,191,073 $ 5,054,455 $ 4,674,047 $ 4,476,816 $ 4,312,998 $ 4,169,753 $ 4,041,132 $ 3,929,158 $ 3,825,473 Ratio % TE/Total Revenues 61.98% 73.73% 66.85% 62.77% 59.29% 56.19% 53.39% 50.90% 48.58% Gross Net Profit/Loss -$6,534,650 $7,594,064 $7,202,961 $18,546,019 $29,208,622 $41,465,071 $55,259,026 $70,551,158 $83,399,919 $97,175,807 Corporated Taxes $0 $0 $1,239,356.28 $2,781,903 $4,381,293 $6,219,761 $8,288,854 $10,582,674 $12,509,988 $14,576,371 Net Profit/Loss after Tax -$6,534,650 $7,594,064 $5,963,605 $15,764,116 $24,827,329 $35,245,310 $46,970,172 $59,968,484 $70,889,931 $82,599,436 NPV Millions CAN $ $ - $ 369,045 $ 5,297,644 $ 17,141,458 $ 34,098,857 $ 55,983,422 $ 82,496,859 $ 113,270,174 $ 146,340,850 $ 181,371,074 YEAR N尊 1 2 3 4 5 6 7 8 9 10
- 17. TRACTION Partnerships: Our Oceans Challenge, Netherlands McGill University Department of Chemical Engineering, Quebec Southtek Sensing Technologies, Spain.
- 18. EXECUTION TIMELINE 2015 October...Term sheets & launch of Z Ships December..Closing of first round 50 % 2016 Jan-Oct.Z Ships builds prototype retrofit V0 Nov-Dec..Technical Validation and Invitation of key players & partners 2017 January.First orders globally
- 19. Pre-money value: CAD$ 21 M First Round: 25% equity CAD$ 7 M Post-money value: CAD$ 28 M Estimated value Q4 2025: CAD$ 181 M NEXT STEPS
- 20. 6 years plan Cash Flow & Net Present Value NPV ~ $56 Mi CAD 1 2 3 4 5 6 Cash Flow Can $ -$6'534'650 $1'059'414 $7'023'019 $22'787'135 $47'614'464 $82'859'774 NPV Can $ $- $369'045 $5'297'644 $17'141'458 $34'098'857 $55'983'422 N尊 acum. retrofitted ships 1 3 7 15 26 40 N尊 acum. new ships 0 0 0 0 0 0 0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 -$10'000'000 $0 $10'000'000 $20'000'000 $30'000'000 $40'000'000 $50'000'000 $60'000'000 $70'000'000 $80'000'000 $90'000'000 N尊ofShips CANADIAN$ CASH FLOW - CASE R - Accumulated N尊 of retrofitted & new ships NPV - 6 years plan Cash Flow Can $ NPV Can $
- 21. THANK YOU Contact: Jose Luis Gutierrez-Garcia, CEO, CRO CANADA | joseluis@upgyres.org | Tel: 1 + 604 984 4327