LOGO

“ Add your company slogan ”

AQUAAQUAESTUSESTUSinfo@aquaestus.cominfo@aquaestus.com

“Heating longer for less”

®

www.aquaestus.comwww.aquaestus.com

Your InvestmentYour Investment: : £250k£250k with with 30% equity30% equity in AquaEstus in AquaEstus

ReturnReturn: You will recieve an : You will recieve an 11 fold11 fold return of return of £2.8m after 3 years£2.8m after 3 years

Outline

Our productOur product, , Bio-AdBio-Ad

Latest in Latest in energy conservation technologyenergy conservation technology

Easy to use Easy to use

Only productOnly product of its type in the market of its type in the market

SavingsSavings: reduce your utility bills : reduce your utility bills up to 37%up to 37%

In accordanceIn accordance with with legislation legislation concerning energy efficiencyconcerning energy efficiency

The marketThe market

Potential market of Potential market of £2.7bn£2.7bn in the UK alone in the UK alone

IP protected IP protected CE Marked CE Marked Field testedField tested

Mr. Andrew Pike

Financial Advisor

Dr. Jonathan Pate

Technical Advisor

Mr. Miguel Galindo

Production Director

Dr. Jennifer Hannant

Marketing Director

Dr. Jennifer Hannant

Marketing Director

5 Years Experience in Industry

PhD Law

BMA Award 2008 Best Marketing Project

Mr. Miguel Galindo

Operations Director

7 Years Experience in Process Development

MSc Chemical Engineering

Mr. Andrew Pike

Financial Director

6 Years Experience in SME Investmentand Real Estate Development

Dr. Jonathan Pate

Technical Advisor

Newcastle UniversitySenior Lecturer in Biochemistry

Mr. Joe Hedley

Managing Director

Dr. Jennifer Hannant

Marketing Director

Mr. Miguel Galindo

Operations Director

Mr. Andrew Pike

Financial Director

Dr. Jonathan Pate

Technical Advisor

AquaEstus – The TeamAquaEstus – The Team

IP position

Non-corrosive

No need to drain

the system

Durable for approximately

of 2 years

easy to add

Bio-degradable

BIO-AD

Product Concept: Product Concept: BIO-ADBIO-AD

Radiator cooling curves

BIO-AD

AQUAESTUS

Oscillating biochemicalOscillating biochemical

HOTHOT COLDCOLD

Market OpportunityMarket Opportunity

BIO-AD PRO

AQUAESTUS

Price - £45 Price - £45 every 2 yearsevery 2 years

Savings ~ £400 Savings ~ £400 a yeara year

£7k installation

£150 installation

£5k installation

£150 installation £25

installation

Cost – over £12k to installCost – over £12k to install

Savings ~ £950 a yearSavings ~ £950 a year

Primary Market SizePrimary Market Size

Market size

90% contain central heating systems

20 million homes

Target market <1%

through residential

alone

True market True market opportunity is 18 opportunity is 18 million home million home ownersowners

18 million homes 18 million homes at £45 per unit = at £45 per unit = £810 million£810 million

In 2008, housing accounted for 30.23% of all In 2008, housing accounted for 30.23% of all energy use in the UKenergy use in the UK

Route to MarketRoute to Market

Year 1Year 1 Year 2 Year 2 Year 3Year 3

£8.1M£8.1M

ResidentialResidential

£810M£810M

Builders MerchantsBuilders Merchants£2.7bn£2.7bn

Commercial and Commercial and Public SectorsPublic Sectors

•Based in Newcastle they fit more than 50,000 energy efficient central heating systems across the country every year.

•A wide range of clients.

•The UK’s 2nd largest supplier of heating and renewable energy.

•AQUAESTUS have a 1 year exclusive pre-contract agreement.

Finance: Equity ShareFinance: Equity Share

At year 3 annual profit = At year 3 annual profit = £1.9m£1.9m AquaEstus valuation = AquaEstus valuation = £9.5m£9.5m

Exit : Trade SaleExit : Trade SaleYour return on £250k = Your return on £250k = £2.8m£2.8m

Securing IP

Establishing distribution network

Production of 10.000units of Bio-Ad

Market Assessment / Consultancy

Overheads

Salary of 3 full time staff£15k

£15k

£50k

£300k

£100k

£30k

Development £140k

AquaEstus Next StepAquaEstus Next Step

YOUR INVESTMENT £250K

£650kSales = £450k

1st yearDebt = £200 k

1st year

Projected Profit vs. SalesProjected Profit vs. Sales

10,000 units 40,000 units 90,000 units

Pou

nds

(£k’

s)

Projected Profit / Loss ScenarioProjected Profit / Loss ScenarioP

ound

s (£

k’s)

Shoe String TestingShoe String Testing

BIO-ADBIO-AD Independent Test (CIM) in 150 Independent Test (CIM) in 150 houses voluntarily over a period of 1 year;houses voluntarily over a period of 1 year;

• Results confirmed savings up to 37% on Results confirmed savings up to 37% on utility billsutility bills

• The case study also showed ease of use The case study also showed ease of use and installationand installation

Accelerated tests indicated that Accelerated tests indicated that BIO-AD BIO-AD life cyclelife cycle is 2 years for optimum is 2 years for optimum

performanceperformance

• 93 % tested houses would buy it93 % tested houses would buy it

Cost of Production / DistributionCost of Production / Distribution

1 L cost = £ 301 L cost = £ 30 1 L cost = £ 151 L cost = £ 15

CO

ST

(£

)

Year1 2 3

Local Production UK

Production overseasGermany / Romania

Transfer Period

Warehouse distribution centre in UK

Beyond Year 3Beyond Year 3

EXPANDING HUMANEXPANDING HUMANRESOURCESRESOURCES

OUR COMMITMENT TO OUR COMMITMENT TO R&DR&D

MARKET MARKET DIVERSIFICATIONDIVERSIFICATION

LOGO

“ Add your company slogan ”“Heating longer for less”

INITIAL INVESTEMENT £ 80K

External validation

£ 30K Personal Investment £10K each

£ 50K Business Angel, A. Pike

In-house testing

Product development

CE Marking

Legal Support

Marketing Research

Patent filed Feb’ 2008

PCT application Feb’ 2009

AquaEstus First StepsAquaEstus First Steps

Conservative case10000 units £45 =

£45000025000 units at £45 =

1125000 72000 units £40 = £2.9m

 Production cost £30

per unit Production costs £20 per

unit Production costs £15 per unit

  = £300000 = £500000 = £1080000

   

Salaries 100000 100000 200000

Overheads 30000 30000 30000

R&D 140000 210000 260000

Distribution 15000 40000 50000

IP 15000 15000 15000

Travel 20000 30000 30000

Market/consultancy 50000 70000 70000

sum 370000 495000 655000

profit -220000 130000 1165000

      7-fold return

Year 1 Year 2 Year 3

Expected case10000 units £45 =

£45000040000 units at £45 =

1800000 90000 units £40 = £360000

 Production cost £30

per unitProduction costs £20 per

unit Production costs £15 per unit

  = £300000 = £500000 = £1080000

   

Salaries 100000 100000 200000

Overheads 30000 30000 30000

R&D 140000 210000 260000

Distribution 15000 40000 50000

IP 15000 15000 15000

Travel 20000 30000 30000

Market/consultancy 50000 70000 70000

sum 370000 495000 655000

profit -220000 805000 1865000

      11-fold return

Year 1 Year 2 Year 3

Best case10000 units £45 =

£45000050000 units at £45 =

2250000 120000 units £40 = £4800000

 Production cost £30

per unitProduction costs £20 per

unit Production costs £15 per unit

  = £300000 = £500000 = £1080000

   

Salaries 100000 100000 200000

Overheads 30000 30000 30000

R&D 140000 210000 260000

Distribution 15000 40000 50000

IP 15000 15000 15000

Travel 20000 30000 30000

Market/consultancy 50000 70000 70000

sum 370000 495000 655000

profit -220000 1255000 3065000

      18-fold profit

Year 1 Year 2 Year 3