Capacity

1. Capacity Amy Haase Amit Shah TC Chang Travis Engelman Matt Grodin

2. Problem & Customer Problem: Increasing electricity costs Government mandates to monitor & reduce energy consumption Hotel expansions underway while economy tightens Ec0-savvy competition Customer: Hospitality Industry Demonstrated demand for energy efficiency systems Opportunity for large scale energy savings HVAC and Lighting alone cost $597/room/year Source: PKF Consulting Report

3. Market Size & Growth Market Size 15 million hotels worldwide Top 20 hotel chains owned by 10 groups Representing 18% of market (2.97 million rooms) Growth Target Customer Stats 2006-2008: Average expansion of 6% per year Average operating income increase of 12% per year Business objectives Implement Capacity solution across major hotel groups Enable hotels to experience significant savings (20+%) to mitigate rising electricity costs Help them help us make $$$ Source:http://www.mkg-hospitality.com

4. Business Strategy Competitive advantage / core differentiators: Software service model Outsourced hardware sold at or near cost (low-cost) Fluid integration with existing facilities systems

5. Value Curve Differentiation/competitive advantage from incumbent solutions: SW Web-based Control Commercial Capacity Agile, Lucid, Greenbox InnComm, Onity WiSuite, WattStopper, EnergyEye HW Non-web-based Sensing Residential

6. Market Forces Firm rivalry (medium threat – unique position) Complements (low threat – healthy eco-system in place) Hardware suppliers: sensors & data collectors; thermostats, meters, & networking equipment Installers Consultants Threat of new entrants (medium threat) HW-focused providers in the hotel energy monitoring industry can move towards a software focus. Metering, automation, or networking providers can develop specific solutions to target the hospitality industry. Substitutes (high threat) Other energy conservation solutions (solar, cogeneration / combined heat and power, water conservation efforts, water heating conservation efforts) Renovation Energy hedging Customer power (high threat – large chains with economies of scale) Supplier power (low – commodity components)

7. Solution Offering • Our solution does not force our customers to buy special thermostat rather it provides ability to make their existing thermostat and light controller enabled to do bi-directional data transfer • Rely on existing Wi-Fi networks at hotels, but also work with ZigBee alliance to incorporate new global wireless standard in energy monitoring and control • Our Software will be offered As a Service over WWW that will eliminate need for hotels to manage IT infrastructure, avail pay as you go expense model and instant scalability • Focus on business/operational intelligence from data that provides actionable list to reduce energy usage on permanent basis Source: http://buildings.lbl.gov/CEC/pubs/E5P22T1e_LBNL-53406.pdf

8. Product Features Demand Response (DR) Benchhmarking Features: • Notification: Notification of DR event via web-site, e-mail, phone, pager, cell phone, etc. • Online bidding: Bidding capability via web-site. • Event report: Track and report all events with saving kW and cost. • Baseline: Calculate baseline according to utility program formula. • Forecast: Predict electric load by other variables such as OAT. • Saving analysis: Cost estimation of expected utility bill saving using forecast and/or utility tariffs • Benchmarking: Benchmark usage against other building for same hotel chain or other hotel chains • Partnership Features: Provide partnership benefits to members for alternative energy solutions Source: http://buildings.lbl.gov/CEC/pubs/E5P22T1e_LBNL-53406.pdf Visualization/Analysis Features: • Day overlay: Overlay multiple days. • Average: Calculate average of specified period. • Highs/lows: Show max (peak) and min of the day or specified period in graph or tabular data. • Summary: Aggregate by week or month. • Point overlay: Plot multiple variables on same time series. • X-Y scatter: Plot of two points against each other to visualize relationship. • 3D chart: Plot of data point for vertical axis by hour – day horizontal axis. • Load duration: Sort and bin data for plotting load (or load factor) and hours at each load. • Calendar profile: Plot daily profiles of a month like calendar. • Aggregation: Aggregate multiple buildings or sub-meters. • OAT plot: Plot outside air temperature on a time series graph. • Per sqft: Normalize consumption by area for power/utility cost. • Forecasting: Forecast day-ahead loads.

9. Resource Allocation and Funding Founder commitment: $1 M – Q1 2009 Series A: $4 M – Q1 2010 Total: $12.5 M Series B: $5 M – Q1 2011 Series C: $3.5M- Q1 2012 Series A Round Need: To further develop the hardware and software Series A Round Milestone: By Q1 2010 Capacity will have developed a working prototype of the transmitting module, base unit, and web application Series B Round Need: Necessary for the implementation of the first generation of software and hardware. The R&D headcount will continue to grow to 28 for 2nd generation (SW + HW) Series B Round Milestone: By Q1 2011 Capacity will have a contract with one major hotel chain with an installation date in early 2011. The product will be in a beta form that can be installed in Q1 2011. Series C Round Need: Directly to operations for rapid market adoption in 2012. R&D headcount will remain at (28) will transition to 2nd gen.

10. Return on Investment The premoney valuation in 2010 will be $19.6 M. In exchange for $4 M Capacity will exchange 17% of total equity. Exit strategy: Sell to big three of infrastructure Valuation: $75.3 M based on 3x P/S energy monitoring multiple $12.7 M on the investment which corresponds to a 55% IRR.