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“Buried Infrastructure’s Last Line of Defense” Excavation Alert Systems, LLC. Damage Prevention Systems for Buried Infrastructure Ryan Dunn 660 Hunters.

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Presentation on theme: "“Buried Infrastructure’s Last Line of Defense” Excavation Alert Systems, LLC. Damage Prevention Systems for Buried Infrastructure Ryan Dunn 660 Hunters."— Presentation transcript:

1 “Buried Infrastructure’s Last Line of Defense” Excavation Alert Systems, LLC. Damage Prevention Systems for Buried Infrastructure Ryan Dunn 660 Hunters Place, STE 102 Charlottesville, VA 22911 ryan.c.dunn@gmail.com 518.312.2443

2 “Buried Infrastructure’s Last Line of Defense” Growth (Shale): $187B in new pipelines. 24,400 mi/year transmission. 50,000 mi/year distribution. Growth (Shale): $187B in new pipelines. 24,400 mi/year transmission. 50,000 mi/year distribution. High Consequence Areas (HCAs): 35,000 miles transmission (7%). 2,100,000 miles distribution (100%). High Consequence Areas (HCAs): 35,000 miles transmission (7%). 2,100,000 miles distribution (100%). 3,000 Pipeline Companies: 500,000 mi. Transmission & 2,100,000 mi. Distribution

3 “Buried Infrastructure’s Last Line of Defense” Leading cause of significant pipeline incidents. 2007-2011: 318 incidents – 27 fatalities. – 114 serious injuries. – Cost: $1.9B. 57% of excavation incidents caused by: – Failure to call a locating service (32%). – Failure to correctly mark utility (25%). PROBLEM: Excavation Damage

4 “Buried Infrastructure’s Last Line of Defense” Protocols & Proactive Devices: Monitoring and Sensor Systems: Passive Visual Indicators:

5 “Buried Infrastructure’s Last Line of Defense” ExcAlert TM SOLUTION: Directly warns excavation crew, PREVENTING accidents. – Visual (colored smoke). – Sound. No proactivity required. New and retrofit installations. Inexpensive: ~1% of pipeline cost. Safe for use near natural gas pipelines. Long life, no maintenance, weatherproof.

6 “Buried Infrastructure’s Last Line of Defense” PVC Pipe with designed breakpoints. High longitudinal strength for installation. Easily broken with excavator shear force. Clear path to surface for signal when broken. Small hole diameter required for retrofit. High effective area when installed at angle. Easily produced in varying lengths for pipelines at different depths. Multiple configurations in pending patents: PCT/US2012/071096 Product Details: Retrofit Installation Vehicle GPR Image Smoke Generator Sound Producing Diaphragm

7 “Buried Infrastructure’s Last Line of Defense” Innovative Business Model: 5 - 10 Year ROI System Cost Pass Through Reduced Insurance Premiums Improved Triple Bottom Line How to create a pull in a regulation driven industry? – Create a 5-10 year ROI for pipeline companies. Strategic relationships with leading pipeline insurance companies to offer reduced premiums on ExcAlert TM protected pipelines. Utility companies can pass system cost through to rate payers. Improves “Triple Bottom Line” initiatives: Safety, Health & Environment.

8 “Buried Infrastructure’s Last Line of Defense” RYAN DUNN FOUNDER & CEO BRYAN WRIGHT J.D. IP & INDUSTRY EXPERT ROBERT TOBEY C.P.A. OPERATIONS & CFO MAJOR PIPELINE EMPLOYEE BUSINESS DEVELOPMENT CEO, ElectraWatch, Inc. Successful product commercialization. Electrical Engineering & Engineering Management, Dartmouth College. VA Bar & TX Bar Oil and Gas section. “Super Lawyer” for IP law, VA Super Lawyers magazine. AV Rated. 30 years experience in operation and management of IP based companies. Resident Advisor & Entrepreneurial Mentor, Darden / Batten Institute. Financial Expert. Strategic first hire. Significant experience at major pipeline company. Leverage experience and connections for business development. INVESTORS & ADVISORS: GEORGE PHILLIPS Senior Vice President, Rutherfoord Pipeline Insurance Industry Expert LEN WOLOWIEC President, Universal Steel America Pipeline Connections in Houston, TX. ?

9 “Buried Infrastructure’s Last Line of Defense” Virginia LLC. headquartered in Charlottesville, VA. $65k in seed funding from founders. Functional Prototype Stage. – Strong IP (PCT/US2012/071096 - pending). – Initial strategic relationships. Company Information: Series A - $1.6MM of $3MM Raised: $1.6MM$3MM Awarded $1.5MM in VA tobacco commission funding on 9/16/13. – Equity capital at significantly below market rates. – Requires $1.5MM in matching funding and manufacturing in VA tobacco region. $100k Charlottesville based Angel. Funding Use: – Strategic hires from pipeline industry: Business Development & Sales. – Design improvements: improved performance, mass manufacturing. – Statistical Testing: soil types, freeze thaw cycles, longevity, large test bed. – Working Capital.

10 “Buried Infrastructure’s Last Line of Defense” BACKUP SLIDES

11 “Buried Infrastructure’s Last Line of Defense” BUILD TEAM 2013 2014 2015 2016 2017 SALE OF COMPANY: VOLUME MANUFACTURING $3MM INVESTMENT FORM COMPANY FILE PATENT PHMSA DEMO Commercialization Timeline: MONITORING SYSTEM COMPANIES OIL & NATURAL GAS COMPANIES PIPELINE INSTALLATION COMPANIES PIPE PRODUCERS INSURANCE ACCEPTANCE FINAL DESIGN COMPLETE RETROFIT INSTALLATION VEHICLE PIPELINE INSTALLATIONS

12 “Buried Infrastructure’s Last Line of Defense” 40 mile ExcAlert Installation: – Revenue: $50k/mi * 40mi = $2MM – COGS: $14k/mi * 40mi = $560k – Gross Margin: $1.44MM (72%) Proforma: Sales Example: Projections: Revenue: – Devices: $30k/mi – Installation: $20k/mi with vehicle – $50k/mi = ~1% of $4MM/mi pipeline cost COGS: – Devices: $7,450/mi – Installation: $6,786/mi with vehicle – Gross Margins = 72% Revenue & COGS:

13 “Buried Infrastructure’s Last Line of Defense” United States Pipeline Market: – 3,000 Pipeline companies. 2010: $9.7B profit on $31B in revenues. $930MM annually on preventative technologies. – 500,000 miles of transmission pipelines. – 2,100,000 miles of distribution pipelines. Target Market: Pipelines in High Consequence Areas (HCAs): – 35,000 miles transmission pipeline (7%). – 2,100,000 miles distribution pipeline (100%). Target Market Growth (Shale): – $187B investment next 25 years ($7.5B/year). – 24,400 mi/year trans. (1,709 HCA mi/year). – 50,000 mi/year dist. (50,000 HCA mi/year). Secondary Markets: – 35MM mi of buried infrastructure in U.S. – Power transmission & fiber optic backbone lines. * Use of potential customers trademarks does not indicate a relationship with or sponsorship by the potential customer.


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