An Individual Temperature Solution

ThermOne

1 Zoning

2

3 Fantastic Looking

Energy Saving

With 200 respondents

Unsatisfied with their

Thermostat

.

Need Zoning

Need energy saving

3

By Honeywell

7 Components

20 Pieces

Red Link $115

Zone Panel $80

Remotes $84*5

Dampers $110*5

In & Ex Sensors $85*6

Estimate 1.5hr

Duck Remodeling 3hr

Damper Installation 2hr

Other Installation 1hr

Tuning 0.5hr

Thermostat $250

Labor $800

4

What do pros say

“… (Honeywell) is expensive to install …

very few people use the system.”

-- RobertHVAC Technician

5

Our components

ThermOne

Central Processing Unit

Vent

Basic Unit

Pet

Room Unit

6

Two rooms AC

BedroomLiving

Room72℉

72℉

70℉

74℉

67℉

72℉

7

Easy to install Zero maintenance cost

No communication line No power line

How?

Low power chips

(battery-powered)

Damper near vent

Smart Pets grid• User friendly

Accelerometer

magnetometer

• Safe and health

Humidity sensor

Infrared thermopile sensor

• Vacant or occupied

Infrared sensor

• More…

Tea polyphenol loaded

Carbon fiber filter

Reduce 50% of the

VOC & 30% Air

Particles

<4% air rejected

Wireless Vent

5 min Installation

>12 months’ battery

Changing cycle

Our components

11

Thermone $841 1 Hour

Honeywell $2725 8 Hours

Price Wireless

Energy

Saving

Air

PurificationInstall

User

Friendly

12Based on 4 bedrooms and 1 living room

What do pros say

“Thermone is very innovative ...

It will be a good solution …”

-- Terry ClarkSenior Manager

13

Start Small & Local

5,000

Users

OnlineRetailers

Pro-Websites

UTD

Crowd

funding

Manufacturer

100 Seed Users

Hangzhou, China.

Local Contractors

14

40,000

5,000

3 Stages

15

Family & friends;

Cash burn: $20K/Month

1st Round angel investors

Cash burn: $42K/Month

2nd Round angel investors

Cash burn: $23K/Month

16

Dr.XuCheng LukeJodi Tan

Tests &

Software

Research & Hardware

Design

& Networking

ManageSurvey &

Ideas

2 Months’ Team Work

50% Gross margin.

Increase to 59% due volume shipment

$35K or 10% sales as monthly R&D

budget

20% sales as monthly marketing budget

1

2

3

>300 Monthly new customers to get a

positive cash flow.

$530K Total investment needed in 3

different stages

40K Total customers in 3yrs = Nest’s one

month sales

4

5

6

($200,000)

($100,000)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

($2,000,000)

$0

$2,000,000

$4,000,000

$6,000,000

Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16

Sales

EBITDA

Net Income (left axis)

11%

89%

YES

35%

65%

Care

91 Million Households

22% are between 25~40

91 Million*22%*89%*65%=

11.6 Million

Total market share

Thermone Temperature Sensor Vent Damper

$25.5 $32.1 $11.6

Manufacturing fee

Integrated Circuit

Outside Casing

Component Which Block?* Manufacturer Model Specs CostMicrocontroller A T TI MSP430F6723 Metering and LCD $2.3 @ 1k unitsWi-Fi Module T TI CC3000MODR IEEE 802.11 b/g, IPv4, 11Mbps, with CPU $9.9 @ 1k unitsBluetooth Module T, N, V TI CC2500 series Bluetooth 4.0 $4.3 @ 100 unitsBattery A TRelay TTemperature Sensor N TI LM135 Temperature $5.65 @ 1k units

DFRobot DHT11 Humidity & Temperature,+/- 1% RH, +/- 1 Celsius

$4.00 @ 100 units

Humidity Sensor N Sensirion SHT21 $5.35 @ per unitInfrared Sensor N Honeywell SD5600-001 Motion Sensing $2.92 @ 5k unitsBattery B NMotor V Minebea SM5-20 Small Diameter $0.2 @ per unitBattery C V

*Block: T = Thermone ;N = Sensor Node; V = Vent