Preferred LED Lighting for Commercial Facilities
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Company Overview
VISION: To transform our world with “Green” energy efficient, environmentally responsible LED lighting.
MISSION: To be the market innovator and leader of “Green” technology through high quality LED lighting solutions that conserve energy, preserve the environment and provide the best value.
SOLUTIONS: IlluminerLED™ tubes and bulbs continue to earn the highest industry certifications for safety and performance from the world’s most respected testing laboratories. With patents filed for its unique product innovations, IlluminerLED replacement lamps are the preferred choice in today’s energy efficient commercial facilities.
Headquartered in the San Francisco Bay Area with operations in Guangdong, China
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(1) U.S. Dept of Energy, 2003(2) LEDs Magazine, March 4, 2009
Vast Market Opportunity
(3) Next Generation Lighting Industry Alliance(4) U.S. Dept of Energy, 2003
(5) Navigant Report prepared forU.S. Dept of Energy, September 2008
The potential U.S. market for LED replacements includes 4 million commercial office buildings and 40 million square feet (1)
LED industry expected to exceed $5 billion in 2012 (2)
Compound annual growth rate of 107% through 2013 for lamp revenues
Overall U.S. lighting market is currently estimated at $15 billion and globally at $75 billion (3)
8% of all U.S. energy consumption and 22% of electricity nationwide (4)
If LEDs replaced all existing lights, the DOE estimates customer savings of $115 billion by 2025, and 10% reduction in greenhouse emission gases (4)
Roughly 30% of total U.S. lighting energy (1.5 billion lamps) is consumed by commercial fluorescents
IlluminerLED T8 replacement tubes alone could save 16,500,000 kwh/yr… 12,828 metric tons of CO2… electrical output of several large coal power plants
Recessed down-lights represent the largest annual electrical consumption and savings category of indoor white-light applications, yet LED market penetration is currently 0.0%(5)
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Source: Philips
Worldwide LED adoption is a certainty, and it will happen fast…
Vast Market Opportunity
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Vast Market Opportunity
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Illuminer Delivers Solutions
Energy Efficient: produces more lumens/watt, can save 80% in energy costs, highly directional to project light exactly where needed without reflectors
Environmentally Responsible & Safe: 100% recyclable, no toxic mercury or lead, safe surface temperatures, no exposure to fragile glass, ultraviolet light or infrared radiation
Longer Life: useable of 60,000 hours (16 years @ 12hrs/day 6 days/week), virtually maintenance-free, reduces volume of lighting products in landfills
Preferred Features: compatible with standard dimmer controls, quickly reach full brightness (no delays), no loss when frequently powered on/off, shock-resistant, easily retrofits into existing fixtures
Trusted Reliability: UL listed, CE approved, Energy Star compliant, produced with exceptional quality control and direct oversight of manufacturing
Illuminer produces quality LED bulbs & tubes that offer advantages over traditional (and other LED) lamps…
… all with lower cost of ownership
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Illuminer Advantage
Six distinct quality models (over 90 SKUs) ready to ship now Proven commercially successful formats with
preferred features Validated performance: UL listed, CE approved,
Energy Star compliant Patent-pending technology
Existing market presence, partnerships & publicity
Operational capacity for immediate high-volume production Onsite quality control & oversight at overseas
manufacturing facility In-house design & engineering of advancements and
future LED fixtures
Value-added service & expertise for distributors & end-users Consult on tax credits, utility rebates, financing,
LEED certifications, disposal of hazardous fluorescents
Immense flexibility through strategic manufacturing partnership Greater concentration of Illuminer’s intellectual
resources into product development and marketing Migrating production jobs to U.S. is viable
CEO has proven prior success in alternative lighting sector
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Product Advantages
BRAND MODEL RETAIL WATTS | LUMENS EFFICACY CRI LIFE DIM WARRANTY UL
$37.06
GE 73718 $40.00 7.0 | 200 28.6 82 20,000 no unpublished noGE 73717 $40.00 7.0 | 200 28.6 82 20,000 no unpublished no
Sylvania 78637 $44.00 8.0 | 350 43.8 85 50,000 yes unpublished yes
$58.03
GE 75376 $58.51 10.0 | 340 34.0 82 20,000 no unpublished noSylvania 78639 $81.39 15.0 | 770 51.3 87 50,000 yes unpublished yesPhilips 40810-4 $71.08 11.0 | 440 40.0 83 40,000 no 3 years yes
$83.68
Cree LRP38 $125.00 11.0 | 600 54.5 90 50,000 no 3 years noSylvania 78641 $75.00 18.0 | 900 50.0 87 50,000 yes unpublished yesPhilips 40816-1 $86.31 16.0 | 650 40.6 85 40,000 yes 3 years yes
$19.32
Sylvania 78635 $28.74 6.0 | 300 50.0 87 35,000 yes unpublished n/aPhilips 40674-4 $39.27 4.0 | 130 32.5 80 45,000** no 3 years n/a
$33.33Lighting Pharox $49.95 6.0 | 336 56.0 86 5 years yes unpublished yesSylvania 78642 $49.00 8.0 | 430 53.8 85 50,000 yes unpublished yesPhilips 40795-6 $34.00 7.0 | 325 46.4 80 25,000 yes 3 years yes
yes
A-L
INE
MR
16P
AR
38
n/a
ILLUMINER LA-ST-D 9.0 | 600 66.7 80+ 50,000 yes 5 years*
pending
ILLUMINER LMR16-BP12V 3.5 | 200 57.1 80+ 30,000 pending 5 years*
pending
ILLUMINER LP38-D 14.0 | 900 64.3 80+ 50,000 yes 5 years*
pending
PA
R30
ILLUMINER LP30-D 8.0 | 500 62.5 80+ 50,000 yes
5 years*
5 years*
PA
R20
ILLUMINER LP20-D 5.5 | 350 63.6 80+ 50,000 yes
All models are current, latest offerings, no obsolete stock at distributors are considered here. *Effective September 2010.**Based on 50% light output remaining, which is far below the industry standard of 70% that Illuminer complies with.
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Misinformation about efficiency & cost savings of incumbent fluorescents
Lamps waste 30% of energy consumed as heat; ballasts consume even when “off”
Frequent on/off reduces life while continuous “on” draws more energy
Environmental & health/safety hazards of traditional lighting
Energy efficiency “green” campaigns for fluorescents have ironically lacked warnings/guidance about toxic mercury & PCBs in lamps & ballasts
High surface heat of all fluorescents & incandescent bulbs are fire hazards
Current Market Needs
Complicated, costly disposal of hazardous fluorescent bulbs
Users are burdened with costs and logistics (or penalties)
71% of toxic fluorescents in businesses are not being recycled(1)
Consumers are unsatisfied with current fluorescents
Buzzing, flickering, delays, undimmable, fragile glass, toxins… fluorescents have dominated energy efficient lighting by default, not preference
Public is confused about viability of LEDs – undermining adoption
Unreliable LED products being rushed into market are performing poorly
Lack of regulations/standards; utilities & government distracted with fluorescents
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Marketing Plan
Accelerate mass adoption of reliable LED lighting:
Supply to high-volume commercial lighting & electrical distributors
Earn exclusive, multi-year ($1+ million) supplier contracts for federally-funded lighting retrofits
Incentivize large marquee brands to participate in pilot installations & case studies
Educate consumers about responsible lighting solutions & LED product distinctions
Guide prospects from Illuminer brand recognition to brand preference & loyalty
2010 Implementation:
Market Research & Case Studies
Events & Demos
Product Testing & Credentials
Public Relations
Service
Training & Education
Strategic Partners
Industry Leadership
Corporate Website - Phase II
Advertising
Marketing Collateral
Memberships
Sales Rebates/Incentives
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Adura Technologies
California Lighting Technology Center (at UC Davis)
California Product Stewardship Council
Commercial Energy
Dept. of Energy Lighting Facts program
Energy Connect
Energy Star
Pacific Gas & Electric (PG&E)
City of Palo Alto Utility
Commercial Energy
Palo Alto Research Center (PARC, a Xerox company)
With the support of these influential organizations to test, showcase and endorse IlluminerLED™ products to their stakeholders and customers, Illuminer has immense leverage for gaining brand awareness and marketshare.
Strategic Partners
Presidio Graduate School, Sustainability Program
Progressive Lighting & Energy Solutions
SFEnvironment.org
Silicon Valley Power
Sustainable Contra Costa
Sustainable Energy Partners
Underwriters Laboratory
US Green Building Council
Veolia Environmental Services
WattStoppers
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Competition Overview
IlluminerLED™ retrofit lamps (and future LED fixtures) are competing to serve general illumination and display needs within the commercial market. There are no clear leaders yet in this space yet.
Where do the traditional lighting leaders currently stand with LED technology? (Philips, Sylvania & GE)
Protecting their core business Seeding the new frontier Targeting retail consumers first Watching and waiting Planning ahead Gaining market share through acquisitions
None of them offer a T8 tube or cite UL-listings or Energy Starstandards on their product specs.
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Primary Competitors
Companies that control their own innovations and manufacturing of interior commercial LED lighting retrofit lamps that are branded in their name (and include UL-listed linear T8 or T5 models) are primary competitors for Illuminer. Currently, there are no significant competitors.
Formidable competition with the best chances of catching up long-term include: GE, Sylvania, Philips, Cree, Lemnis, ATG Electronics
Even the traditional brand
leaders have rushed LED
retrofit products into the
market that fall short of
the features, performance
and certifications of
IlluminerLED™ lamps.
None of them offer a T8
tube or cite UL-listings or
Energy Star standards on
their product specs.
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Secondary Competitors
A growing number of licensed resellers in this space do not control manufacturing, innovations or any intellectual property: Seesmart, Nexxus Lighting, Green Ray Technology, Green Edge Lighting, (Some perceived or represent selves as producers)
As Illuminer refines its designs for integrated single-solution LED fixtures, it will compete for market share with these companies: Lunera, Go Energy Effective Lighting, Intense Lighting
It’s difficult to distinguish manufacturers/developers from brokers because so many foreign manufacturers are private-labeling their products to resellers.
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Competition Summary
Illuminer recognizes other companies will catch up with features, performance, UL listings and Energy Star standards… there is a unique window of opportunity to capitalize on NOW.
By meeting the needs of commercial LED customers and creating market-leading products, Illuminer is positioning itself as a strategic and profitable acquisition by brand leaders seeking market dominance in LED lighting within the next five years.
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Success Stories
CUSTOMER PROFILE This county has 1.8 million residents, and is nationally recognized for leading implementation of alternative fuels, reducing solid waste and creating clean tech jobs.
FACILITY GOALS
• Reduce operating costs
• Serve as a model for all other SCC buildings to retrofit lighting
RETROFIT PLAN
Jan 2010: Install 58 T8’s in Juvenile Hall
May 2010: Conduct T8 tests in offices
Oct 2010: Garage & conference room installs
REVENUETo be phased based on test approvals
$30,000 by end of Q410
$100,000 in Q111
Santa Clara County
Juvenile Detention Center
SCC has federal stimulus funds for retro-commissioning their diverse portfolio of buildings, along with great political momentum to get projects implemented. Yet until Illuminer’s distributor AIES demonstrated its LED retrofit lamps to SCC facility maintenance teams in October 2009, the County was considering delaying adoption of LEDs because no products had met their expectations before. SCC placed an order for IlluminerLED T8s the very same day they saw the demo, for use in the County’s highest profile lighting retrofit.
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AFTER:IlluminerLED T8 Commercial 4ft, 277v (soft white) provided a
clean, day-lit feel in this lobby; fixtures perform more like skylights.
BEFORE:Very high traffic lobby with 18 3-lamp fixtures wired for multi-level switching in a master-slave configuration (9 pairs of 2- and 4-lamp power sets). Fluorescent tubes in various brands and color temperatures (due to on-demand replacements); many casting a dingy, artificial glow onto furniture and visitors.
Santa Clara County
Juvenile Detention Center
Success Stories
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Success Stories
Stanford Linear Accelerator Lab Campus
The SLAC campus is comprised of many old, diverse industrial buildings that vary in size. Most of the outlaying units are minimally occupied by people (contain self-running equipment), so they’ve incorporated occupancy sensors as part of effort to reduce energy costs. They have the budget to retrofit many of the old fixtures with LEDS to further reduce energy consumption as well as to reduce heat accumulation in these buildings. IlluminerLED T8s are being estimated now for the 2-mile accelerator.
CUSTOMER PROFILE The 426-acre SLAC campus is an internationally respected multipurpose laboratory, most known for its six Nobel Prize winners and the two-mile linear accelerator (the longest in the world) that runs through its property. Located in the heart of Silicon Valley, and the progressive city of Palo Alto, SLAC sets the bar very high for science and technology.
FACILITY GOALS
• Reduce energy demand and operating costs
• Simplify/minimize lighting maintenance
RETROFIT PLAN
Feb 2010: install T8’s & PAR38’s in several out-buildings - great success!
Oct 2010: begin ordering for accelerator building
REVENUE
$112,500 by YE2010
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Success Stories
Stanford Linear Accelerator Lab Campus
AFTER:IlluminerLED™ PAR38 Utility (pure white)
AFTER:IlluminerLED™ Utility 4ft, 120v (pure white)
BEFORE:Random fluorescent bulbs and tubes in various shapes, color temperatures and wattage. All fixtures are open industrial style.
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Success Stories
City of Palo Alto
The City received funds from the CA Energy Commission to support a residential energy efficiency program. Through a direct response campaign centered around Earth Day, the City is featuring two unique LED light bulbs for residents to try and vote on – our distributor AIES won the nationwide bid to supply 2,500 IlluminerLED A-Line dimmable bulbs, with option for additional orders if product is well-received.
CUSTOMER PROFILE
The City of Palo Alto has a population of 60,000, whom are very progressive about technology, energy and environmental issues. Since 1896, they’ve supplied utility services for its businesses and residents (independent of PG&E).
PROGRAM GOALS
• Collect residents’ feedback on LED bulb options
• Reduce residential energy usage and environmental impacts of lighting
STATUS
• Success – residents praising IlluminerLED product in surveys, and logging direct calls and emails to Illuminer to purchase more units and styles.
• The City plans to issue additional bid requests for more units.
REVENUE
The amount of CEC funding is unknown, but we are told program will run to the end of the year...
Q110: $30,000
Q210: $45,000
2010 total: TBD
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Success Stories
City of Palo Alto
Direct response campaign mailed to 1,000 residents in March 2010 and 1500 residents in May 2010.
PRODUCT:IlluminerLED A-Line Dimmable, 9w(warm white)
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*Application patents are filed in China under Joint Patent Application Agreement between Illuminer and MLS Electronics. Illuminer will be filing U.S. patents and sharing with MLS under joint patent agreement.
Technology
What is proprietary?
LEDs designed from the CHIP level, not outsourced
PCB circuit board configuration (patent app. #200920062301.1*)
Heat management & dissipation systems (patent app. #200920062302.6*)
Circle line LED bulb used for flush mounts & fans (patent app. #200920062300.0*)
What is advanced? Detachable drivers in T8 and PARs Circuit design Built-in dimmability LEDs at 80+ lumens/watt for low cost Lamp designs to reduce parts & labor
How to maintain lead? Smart LED Drivers: improve power
use, efficiency & extend life of LEDs, modular for field replacement
Proprietary Dimmability: more efficient than standard dimmer controls
Increased CRI: 95+
Sensor Controls: responsive self-adjusting brightness levels based on daylight or target LUX
Smart LED Emergency Drivers: external uninterrupted power supply that meets emergency lighting regulations (i.e. CA Title 24)
Smart LED Fixtures: designed from the ground up to optimize efficiency of LED light & power consumption
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Leadership
MICHAEL ERNST Co-Founder & Chief Executive Officer Leads overall business strategy and financial operations. Over thirty years of entrepreneurial experience in senior executive roles. Previously CEO and Co-Founder of Fiberstars (NASDAQ: FBST); led the initial start-up, venture capital funding and initial public offering; board director (1984-1998); launched the Fiber Optics Medical Products division which developed innovative medical devices at Stanford Neonatal Center. After Fiberstars, he became President of Metropolis Publications. Prior to cofounding Illuminer, Inc., he was a business strategy consultant.
[1] In May 2007, Fiberstars changed its corporate name to Energy Focus (NASDAQ: EFOI) to improve its positioning in the market by emphasizing energy efficiency, though its core business did not change markedly.
ALAIN CORCOSCo-Founder, Executive Vice President & Chief Operating OfficerLeads day-to-day manufacturing activities and aligns corporate-wide operations to achieve financial targets. Alain enables Illuminer's business strategies to be achieved by ensuring integrity of its products and services. He directs product development, quality control, testing and overall operations in China; currently resides in China. He was previously Vice President of Production and Finance at Mobius Entertainment, Inc. and supported the negotiation and closure of over $50 million in financing and several actual production for several films. Previously, he was Business Manager for Alliance Business Management, Inc., responsible for development of financial systems and general operations including revenue and sales growth; and monthly, quarterly and annual financial goal management.
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TRACY BAUERVice President, Sales & MarketingDirects the development, distribution, communications and service of our products to ensure our customers enjoy relevant, value-driven solutions. Tracy brings 20 years of strategic, tactical and operational expertise to Illuminer. She has won landmark contracts, directed award-winning campaigns and launched diverse products for dozens of emerging and Fortune 100/500 brands, including AT&T, VISA, Bank of America, Neutrogena, Merck, Chevron, Federated Department Stores, Kodak, Microsoft, SunPower, Wind River and Blue Shield. Tracy has served as Vice President at Kane & Finkel Communications, as Director of Marketing & Production at Link2 and Director of Creative Services at WCJ Advertising. Since 2002, she has led outreach and educational campaigns to businesses and the media on sustainability and corporate responsibility.
Leadership
JEROME SWARTZ, PhDInnovative Technology & EngineeringLeads our technical team to bring advancements and proprietary solutions that give Illuminer products a competitive advantage. Dr. Swartz co-founded Symbol Technologies, Inc., and served as its Chairman and Chief Scientist until his retirement in 2004. Throughout the 1980's, he led Symbol to pioneer and patent the world's first hand-held, scanner-integrated wireless computer and the first spread spectrum wireless LAN (WiFi), enabling real-time mobile data-transactions. In 1999, President Clinton presented him with the National Medal of Technology (the U.S.'s highest honor for technology innovation) for his patent and development of the first hand-held barcode laser scanner. Dr. Swartz is a recognized expert in the allied engineering physics fields of electro-optics, laser systems and optical design, with particular application to new product development. He is credited with more than 200 U.S. patents and is the author of over 30 published papers. In 1994, he established the non-profit Swartz Foundation for Computational Neuroscience. Dr. Swartz holds a dual Adjunct Professor appointment at Stony Brook University in the departments of Electrical & Computer Engineering and Applied Math & Statistics.
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Capital Requirements
Research & Development
Marketing and Sales
Purchase of inventory
Accounts receivable
Fixed asset purchase
General working capital
Illuminer intends to use total proceeds for
the following general purposes:
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LEDs are the future
Illuminer is already a leader in quality and product innovation
Illuminer is positioned for rapid expansion and revenue growth
The market opportunity is now
CONTACT: Michael D. ErnstOffice: 925-837-8099 | Cell: 925-963-5691Email: [email protected]: www.illuminerinc.com
Summary