2. Sustainable Modular Homes Jamie Britto, Nicole DeJonghe, Max DuBuisson, Kelly Schmandt www.bren.ucsb.edu/~modular

3. High End, Low Cost Our Product sustainable – modular – home

4. High End, Low Cost Addressing Customer Needs Affordable –Continual savings “Green” Rapid construction Customization Human Health

5. High End, Low Cost Customization

6. High End, Low Cost Human Health

7. High End, Low Cost Technical Concept Sustainable ModularAffordable Green Pieces

8. High End, Low Cost Floors and walls built at stations

9. High End, Low Cost Pieces are assembled at another station

10. High End, Low Cost Wrapped and ready to go!

11. High End, Low Cost Fly-ash Concrete Solar Panels Green Screen

12. High End, Low Cost Green Roofing Passive Sunlighting Sustainable Wood

13. Mixed-use development

14. High End, Low Cost How Our Product is Different Compared to: Initial Cost Build TimeUtility Costs Human Health Environmental Impact Regular site-built LowerFasterLowerBetterLower Sustainable site-built LowerFasterSimilar Lower Regular modular HigherSimilarLowerBetterLower

15. High End, Low Cost Regional Market Focus

16. High End, Low Cost Market Segmentation Customer focus Families, baby-boomers, LOHAS

17. High End, Low Cost Market Segmentation Large developers and municipalities Immediate demand in hurricane- devastated areas

18. High End, Low Cost Market Analysis Size/Growth Rate –Modular housing is the fastest growing segment of housing market (National Modular Housing Council) –10% of modular market 1% Green Modular 9% Regular Modular The Housing Market

19. High End, Low Cost Pricing For 1,500 ft 2 single-family home CostsRevenues Manufacturing$75,000$100,000 Transportation$10,000 Installation/Finishing$25,000$37,500 Totals$110,000$147,500 Price per ft 2 $98 (The additional on-site costs of contractors will increase the price for the customer)

20. High End, Low Cost Projections/Milestones 5 Year Cash-Flow Estimate

21. High End, Low Cost Financial Analysis Revenue Estimates Revenue Sales (40 homes)$5,900,000100% COGS($4,400,000)75% Gross Margin$1,500,00025% Expenses Sales & Marketing($175,000)3% Research & Development($90,000)1.5% General Administration($40,000)0.7% Total($305,000)5.2% Operating Profits$1,195,00019.8%

22. High End, Low Cost Green Pieces: a partnership Workshop/apd Architectural expertise Bren School graduate students Environmental expertise

23. High End, Low Cost Green Pieces Why is this a good opportunity ? –Solves a real problem –Impending building regulations –Demand is growing –Strong team –Solid profitability –Technology exists and is evolving

24. High End, Low Cost

25. Questions ?

27. High End, Low Cost Entering the Market Target individual customers Partnering with construction and manufacturing firms Initial revenue model based on semi- customized designs

28. High End, Low Cost Intellectual Property Strategy Automatic copyrighting of designs Contractual agreements –Establish ownership and liability –Client is only lawful user

29. High End, Low Cost Technical Feasibility Established methods of construction Innovative design and integration Alternative materials and appliances already exist

30. High End, Low Cost Prototypes One project under construction –GreeN.O.LA in New Orleans New prototypes being designed –Single-family home

31. High End, Low Cost GreeN.O.LA Mixed-use residential community New Orleans’ Ninth Ward

32. High End, Low Cost Single-Family Home

33. High End, Low Cost Our customer is pained I want to build my own home, but I have to: - rent - live in my parent’s home - have my parent’s buy me a house - move to a less ideal location - choose a less than ideal home Time consuming to build a home on site Homes negatively impact the environment & human health