LOGO Argonne National Lab Presentation 3 Yong Ding Nuttavutt Intarode Ibrahim Iskin Thien Tran 06/12/2009

Outline 1.Company Background 2.Gap Review and Solutions 3.Market Overview 4.Target Market 5.Cost of Production 6.Financial Analysis 7.Potential Applications 8.License Negotiation 9.Commercialization Plan worksheet 10.Project Team Formation 11.Product Development Roadmap 12.Market Development and Roll-Out Plan 13.Product Development Plan 14.Work Breakdown Structure

Company Background

Gaps Technology Lack of study and application new technologies with conventional building materials. Need high efficient, low skill-needed, strong enough and providing comfortable indoor environment’s building solution at optimized cost. Organization Lack of knowledge and experience in Grancrete technologies. Lack of expertise people in the Grancrete development and application. Lack of special equipment and machines for manufacturing. Competitive cost and high margin. Personal Require safety standard for application. Efficiency of commercialized product Reasonable price & Value to money Awareness of environmental conservation in society Gap Review

Gap solutions I  Get Grancrete technology license from Argonne National Laboratory  Promised technology, no R&D risk  A differentiated product  Provide a low cost housing solution for rural area  Currently it is a niche market, expect growing rapidly  Send a team to Argonne National Laboratory for learning the production process and application process  Guaranty gaining the knowledge and experience in Grancrete technology  Speed the commercialization  Purchase the special equipments and machines for manufacturing  Speed the commercialization

Gap solutions II  Provide solution to user  Purchase equipments for application, and sale or rent to builders  Provide training to builders for efficiently applying the Crancrete material in different type building  Charge premiums, but keep a reasonable price comparing to its value  Balance the competitive cost and high margin  Collaborate with Government agency for material and building standard  Readiness for large scale application  Eliminate the public safety concern

Gap solutions III  Partnerships with nonprofit environmentalist organization and government agency to introduce the Grancrete building solution to rural area for green building project  Train the farmers to build the Grancrete house by themselves, reduce the cost  Educate potential customers in awareness of the new building solution’s benefit and cost  Partnerships with local bank to provide small loans for farmers to build farmer house using Crancrete.  Create demand  Increase community quality

Market Overview  UN estimates new 740 million homes are needed in developing countries. That requires 100,000 new homes a day in 20 years (1).  Half of them live in areas susceptible to earthquakes, floods, and hurricanes.  In Asia alone, about 1/3 of population. i.e. 1 billion people, live in rural areas that needs better shelters. (1)

Target Market Tons 1. Knock-down house 2. Repairing works 3. Special wall-floor works

Cost of Production Investment in new equipment: $18000 Raw materials: 10$/unit Labor, Marketing & admin: $28000/year Patent royalty fee: Upfront $10000 Running2%/sales

Financial Analysis Sales ($) Production (ton) Production (bags) Unit Price ($/bag) Number of houses built Costs Upfront Investment Cost of materials Labor, Admin, Marketing (increased at 10%/year) Licensing fee upfront running Net profit NPV (discount rate 15%) $18,039,745

Potential Applications 1. Non-Shrinkage floor 2. High Strength floor 3. Repairing surface road 4. Industry floor 5. Rapid repairing wall-floor

 Project Overview:  Project Plan  License negotiation  Commercialization Plan Worksheet by Argonne Natl. Lab.  Export Control regulations (ITAR)  Royalty Negotiation  Implementation Plan  Project Team formation  Market development plan; roll-out plan  Product Development Plan  Acquiring formula from Argonne Natl. Lab.  Prototype product  Developing production process of the Grancrete technology  Facility Plan  Machinery Purchase  Suppliers  Production plan  Procurement plan  Marketing and distribution plan  Training program Work Breakdown Structure (WBS) Gant Chart

License Negotiation Commercialization Plan worksheet :  Required by Argonne Laboratory from all its prospective licensees before licensing its intellectual property.  Enables the Laboratory and the prospective licensee to determine and characterize the business fit between their interests.  Provides the Lab input on its calculation of value of the intellectual property to both Parties.

Commercialization Plan worksheet

1) General Company Information: – Name, Place of Incorportion, Age, etc. 2) Product Licensing and Sales Information – Exclusive or non-exclusive – Manufacturing location. – Potential applications, estimated sales,… 3) Equity Licensing Information. – Cash Flows, debt structure, exit strategy, etc.

 Royalty offer: – Upfront fee: $10000 – Running rate : 2% / revenue  Export Control regulation: –ITAR : International Traffic in Arms Regulations. –ITAR regulations dictate that information and material pertaining to defense and military related technologies (for items listed on the US Munitions List) may only be shared with US Persons unless authorization from the Department of State is received or a special exemption is used

Project Team Formation Engineering & Project Planning Division 2.Marketing Division 3.R&D Company 4.Mortar Company Cross-functional Team for TT

Product Development Roadmap Technology Markets Products Repairing works House appliances Grancrete material Low cost houses Knock down houses in rural areas Schools, churches Concrete repairs Streets, curbs, gutter Foundation, floor repair Roofing, Water- proofing Driveways Pools, ponds, decoratives Countertops Showers, tubs Arts, crafts 2016

Product Development Plan  Market and Technology Assessment  Financial Analysis  Acquiring formula from Argonne Natl. Lab.  Get license from Thai Industrial Ministry  Prototype product  Developing production process of the Grancrete technology  Facility Plan  Machinery Purchase  Suppliers  Production plan  Procurement plan  Marketing and distribution plan  Training program Collaborate with interested parties such as environmentalist, government, bank, builder, building developer and local community to build an ecosystem

Work Breakdown Structure I

Work Breakdown Structure II

Q&A