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Energy Asset Management
Summary•Turnkey project design, delivery, ongoing maintenance / monitoring •Pay for performance / savings •Project ownership reverts to client at expiration of termClient————Performance PaymentsTurnkey Project, SavingsCapital InvestmentInstallation, MaintenanceEMS•Energy efficiency as-a-service •Reduce cost and improve facilities with no upfront investment•Contract may be transferred upon sale of propertyEquipmentPemcoProject
About Pemco3Founded 2010. Delaware LLC. Mandate to deploy “impact capital” in energy efficiency , renewable energy, and water treatment / distribution projects/programs for building owners to reduce energy use, reduce cost, improve facilities, and redirect Client capital budgets to more mission critical goals. Sustainable Competitive Advantage: Over 150 energy efficiency projects - $63 million project capital deployed on Pemco’s platform. Clients: (Partial list): Discovery Senior Living, Kayne Anderson Real Estate Capital, US Department of Defense, State of FL, DMS, US Postal Service, First Service Residential, University of FL, University of Miami 350> $100
Background•Pemco Capital founded in 2010 •Mandate to invest in energy efficiency, •Provide an institutional, one stop platform for customers, •Earn above market returns for investors, and •Have a positive impact on the environment •Management has diverse background in private equity, real estate development, and design / build / operate infrastructure assets •Capital deployed through integrated network of contractors, engineers, and consultants •Pemco finances projects through Network Partners and owns them for term of contract!4
Energy Efficiency-as-a-Service•Paradigm shift from traditional Owner/Salesman •Separates ownership of asset from the service it provides •Client paying for benefits only, 3rd party owned •Successful examples: Xerox, Uber, Solar City •Energy efficiency or Lighting-as-a-Service (“LaaS”) !5
!6Target MarketInstitutional InvestorInfrastructureGeneral Commercial Pemco RolePlatform Manager: Project Development/Capital Platform, Aggregation, U/W / Due Diligence, Contract Negotiations, Project Management, Performance Measurement, Performance Guarantee, Asset ManagementMarket Size$22.2 B$17 B$20.4 BAvg. CAPEX$3,500,000$10,000,000$75,000Returns25%20%+35%+Sales Cycle (mo’s)6-8 mo12/24 mo2-4 moRevenueFixed + Variable PaymentFixed PaymentFixed PaymentContract Term60-7272+60AssetSenior Care Communites, Multi-Family,Schools, Street Lighting, Waste Water / Water TreatmentCommunity Buiness OwnersChannelCRE Brokers, Property Managers, Direct, Security / Cable Co’sProgram Managers for Municipalities, EngineersCanada, Northeastern US, ChileExperience (1-4)+++++++Target Markets, Channel StrategiesMunicipal
7Client: SouthTech Academy, Palm Beach Co Schools Sector: Education, 501c3#Project: Energy Savings as-a-service. Interior / exterior LED lighting at a 194,000 square foot high school#Impact: School applied savings towards new programming (1 new teacher). LED lighting has been proven to increase cognitive function in studentsSouthTech Academy, Boynton Beach, FLCase Study: EducationClient, Project ReturnsAnnual Savings: $! 121,700Payment to Pemco: $! 85,190Net Savings:$! 36,510Lifecycle Savings 1:$! 949,260Contract Term: 5 Years1.Lifecycle is 12 years
8Coronado Towers - St. Louis, MOCase Study - Student HousingResultsSavings ($, annual)$$ 283,000Payments to Pemco$$ 226,600Net Annual Savings$$ 56,400Contract Term6 YearsClient Lifecycle Savings$$ 2,036,400Asset Value Increase*$$ 4,900,000ProjectKayne Anderson / Temasek - Student Housing at St. Louis Univ. 410 units, 650,000sfMarketMid-WestImprovementsRetrofitted 5,253 common area lighting fixtures, installed VFD controls and a new energy management system, real time energy monitoring. Perform all ongoing maintenance during the term. StructurePemco funded capital investment, oversaw installation, and responsible for O&M during repayment term. Client pays Pemco 80% of verified savings.Moolah Facility - St. Louis, MO
9Case Study - Senior Care ProjectKayne Anderson Real Estate Capital, Senior Housing TX Portfolio - 6 FacilitiesMarketTexas - ERCOTImprovementsUpgrade all common area / exterior lighting with LED system, daylight and occupancy sensors, install wireless “IOT” building automation.StructurePemco funded capital investment, oversaw installation, and responsible for O&M during repayment term. Client pays Pemco 75% of verified savings.ResultsSavings ($, annual)$$ 578,000Payments to Pemco$$ 433,500Net Annual Savings$$ 144,500Contract Term6 YearsClient Lifecycle Savings$$ 4,335,000Asset Value Increase*$$ 10,052,174Conservatory at Champion ForestConservatory at Alden Bridge
Case Study - Hotel / Resort10ProjectMarriott RenaissanceMarketSoutheastImprovementsLED Upgrade, Smart Thermostats / Building Management System. Battery Storage / Peak Demand Software (Facility off-grid during peak demand periods).StructurePemco funded capital investment, oversaw installation, and responsible for O&M during repayment term. Client pays Pemco 65% of verified savings.ResultsSavings ($, annual)$$ 631,000Payments to Pemco$$ 410,150Net Annual Savings$$ 220,850Contract Term5 YearsClient Lifecycle Savings$$ 9,600,000Asset Value Increase*$$ 11,200,000Battery Storage System - Rendering* Assumes 6% cap rateMarriott Renaissance
Case Study - Warehouse11ProjectPort of Palm Beach Refrigerated WarehouseMarketSoutheastImprovementsInterior high-bay LED upgrade wifi connected with occupancy / daylighting controls, automated timers. Cold-Save installed in all refrigeration compressor motorsStructurePemco funded capital investment, oversaw installation, and responsible for O&M during repayment term. Client pays Pemco 80% of verified savings for 5 years.ResultsSavings ($, annual)$$ 274,400Payments to Pemco$$ 219,520Net Annual Savings - Client$$ 54,880Contract Term5 YearsClient Lifecycle Savings$$ 3,120,000Enterprise Value Increase$$ 10,645,000Project lifecycle est. 13 years. Savings escalated 3% annually
Case Study: Grocery Store12ClientWestern BeefLocationNew YorkProperty49,015 sf Grocery StoreECM’sUpgrade 230 refrigeration Motors with high efficiency magnetic fan motorsRetrofit lighting with LED fixturesPre-Project Energy Cost*$$ 159,800Motor Savings$$ 23,250Lighting Savings$$ 12,180O&M Savings$$ 18,800Total Savings$ 54,230Savings %34%19%14%13%15%39%Refrigeration Plug LoadsCooling LightingOtherResults*Includes O&MUS Average Energy Use In Grocery Stores 11. Source: US Department of Energy
Case Study: North AmericaClientUS Dept. of Defense, Brunswick, MEProject#$$Street LightingScope:Upgrade 15,600 street light fixtures at a former naval airbase with LED fixtures and rf occupancy control system. The project was the first of its kind in the world.Notes:Acquire, install, and maintain project. Currently in year 8 of 10 year termRESULTSPre-Project Energy Cost$$! 2,728,266Post-Project Energy Cost$! 1,136,765Annual Cost Savings$! 1,591,501Energy Savings2.75 MWContract Term$$ $ $$#Ten (10) Years Client Payment$$! 795,750!13
!14Municipal Street LightingBrunswick Naval Airbase#15,600 Street Lights $1,590,000 Annual Savings Install, Own Operate 2012/13City in Bolivia#156,000 Street Lights $7,800,000 Annual Savings Install, Own Operate In Process 2019San Miguelito#Panama#8,000 Street Lights $874,000 Annual Savings Install, Own Operate In Process 2019City of Naples, FL#600 Street / Area Lights $376,000 Supply Contract 2018/19City of Cambridge, Massachusetts#6,650 Street Lights $489,000 Annual Savings Finance 2014/15PREPA / FEMA Puerto Rico#20,000 Street Lights $2,500,000 Supply Contract 2018/19
Thank you!For more information please contact:#Josh Heald#Pemco Capital#(561) 676-2983#jheald@pemcocapital.com#!16