Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid NRG x DloHaiti Partnership: Distributed Water and Energy for the Bottom-of-Pyramid Empowering Underserved Communities through a Market-Based Solution for Local Infrastructure Development

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Benefits of Proposed NRG -DloHaiti Partnership 1.Reduce cost and uncertainty of operating in Haiti 2.Quickly establish effective local operations 3.Capture untapped market for long-term revenue growth (diversification to reduce market risk) 4.Address key source of civil unrest in Haiti that impacts Commercial & Industrial market 5.Bring positive social-economic impact to poor communities for significant Haiti political benefits and international PR for expansion 1.Reduce cost and uncertainty of operating in Haiti 2.Quickly establish effective local operations 3.Capture untapped market for long-term revenue growth (diversification to reduce market risk) 4.Address key source of civil unrest in Haiti that impacts Commercial & Industrial market 5.Bring positive social-economic impact to poor communities for significant Haiti political benefits and international PR for expansion

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Dlo Haiti: Proven Model for Engaging Underserved Market in Haiti 1.Providing valuable goods and services: clean water and essential products 2.Local staff operate and manage all sites 3.Incremental revenue for many local businesses 4.DloHaiti facilities are a source of pride for each community: “They are investing in us!”

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Infrastructure + Empowerment = Prosperity & Stability Energy Water Logistics Capital Infrastructure is the key to helping underserved populations take control of their own destinies Employment Entrepreneurship Innovation Wealth Creation Empowerment

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Proposed NRG -DloHaiti Partnership 1.Create Community Enterprise Centers (CEC) – Leverage dloHaiti’s community model to penetrate hard-to-reach markets – Capture untapped BoP markets with clean energy – Sustainably address concerns of discontent & civil unrest by underserved populations, a key obstacle for C&I customers and political leadership – Drive development of local businesses by providing the basic infrastructure: water, energy, logistics, and capacity building in their local community 2.Invest in Shared Business Operations Platform to Accelerate Market Entry for NRG and reduce costs for all – Leverage dloHaiti’s current management team; add to this base – Reduce “Haiti factor” risks and overhead costs for all parties – Increase service levels for all parties (better, more complete team) 1.Create Community Enterprise Centers (CEC) – Leverage dloHaiti’s community model to penetrate hard-to-reach markets – Capture untapped BoP markets with clean energy – Sustainably address concerns of discontent & civil unrest by underserved populations, a key obstacle for C&I customers and political leadership – Drive development of local businesses by providing the basic infrastructure: water, energy, logistics, and capacity building in their local community 2.Invest in Shared Business Operations Platform to Accelerate Market Entry for NRG and reduce costs for all – Leverage dloHaiti’s current management team; add to this base – Reduce “Haiti factor” risks and overhead costs for all parties – Increase service levels for all parties (better, more complete team)

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Phase 1: Meet Existing Consumer Demand with Ice Production and Battery Charging Services Proposed Solution: Decentralized PV Micro-Grids

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Battery Charging Services, a common form of energy purchase and consumption Ice production of 5kg and 10kg blocks (500 kg/day) Ice distribution to dloHaiti resellers and institutional customers

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Why Ice? Adapting to Consumer Needs Grid electricity non-existent or unreliable for majority outside of main cities Ice production and distribution are expensive and dirty (reliant on diesel energy and truck transport) Ice is a significant form of energy consumption in the countryside Distribution and logistics challenges similar to water Ice is produced centrally and delivered in blocks by trucks, cut into smaller pieces and sold through 3-4 levels of intermediaries before reaching end- consumers

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Phase 2: Community Enterprise Centers (CEC) Incubate Businesses by Providing Energy, Water, & Logistics Water and ice production and distribution act as the anchor business for cost amortization of the energy capacity and overhead operations costs. Phase 2: CEC extends its infrastructure (water, energy, distribution) to other businesses; possibilities include WiFi, light commercial production, and refrigeration for supply chain management

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Phase 2: Community Enterprise Centers (CEC) Incubate Businesses by Providing Energy, Water, & Logistics Phase 2: CEC extends its infrastructure (water, energy, distribution) to other businesses; possibilities include WiFi, light commercial production, and refrigeration for supply chain management

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Phase 3: Community Enterprise Centers (CEC): Focal Points for Local Economic Empowerment

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Phase 3: Community Enterprise Centers (CEC): Focal Points for Local Economic Empowerment

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Civil Unrest: It’s All About Getting a Chance

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Market Opportunity: Haiti’s 10 million Poor Represent the Underserved 4 Billion From Prahalad & Hart: “The Fortune at the Bottom of the Pyramid”

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Proposed NRG -DloHaiti Partnership 1.Create Community Enterprise Centers (CEC) – Leverage dloHaiti’s community model to penetrate hard-to-reach markets – Capture untapped BoP markets with clean energy – Sustainably address concerns of discontent & civil unrest by underserved populations, a key obstacle for C&I customers and political leadership – Drive development of local businesses by providing the basic infrastructure: water, energy, logistics, and capacity building in their local community 2.Invest in Shared Business Operations Platform to Accelerate Market Entry for NRG and reduce costs for all – Leverage dloHaiti’s current management team; add to this base – Reduce “Haiti factor” risks and overhead costs for all parties – Increase service levels for all parties (better, more complete team) 1.Create Community Enterprise Centers (CEC) – Leverage dloHaiti’s community model to penetrate hard-to-reach markets – Capture untapped BoP markets with clean energy – Sustainably address concerns of discontent & civil unrest by underserved populations, a key obstacle for C&I customers and political leadership – Drive development of local businesses by providing the basic infrastructure: water, energy, logistics, and capacity building in their local community 2.Invest in Shared Business Operations Platform to Accelerate Market Entry for NRG and reduce costs for all – Leverage dloHaiti’s current management team; add to this base – Reduce “Haiti factor” risks and overhead costs for all parties – Increase service levels for all parties (better, more complete team)

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid BizOps Platform to Accelerate Market Entry Problem: Infrastructure required for efficient operations in Haiti is expensive – Low supply of management and technical/professional resources – High cost of basic services (internet, transport) Solution: Realize Economies of Scale with Shared Biz Ops Infrastructure – Extend capabilities of DloHaiti team to manage basic business operations – Leverage local knowledge and proven management personnel Benefit: Faster, cheaper, and lower risk – Increase service levels for finance, HR, compliance logistics and facilities – Reduce staff ramp-up uncertainty and running cost

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Shared Business Services Financial Operations Local HR Legal Admin Facilities and Comm E & S Admin E & S Admin Logistics & Security Trans Mgt Petty cash Bank trans Payments Bookkeeping Tax Admin Purchasing Recruitment Personnel mgt Labor law Incident mgt Payroll Doc mgt Permitting ESMS Admin Monitoring Violation management Documentation Office space Warehouse IT / Internet Phones Lodging Fleet & driver management and scheduling Security policy management Visitor mgt Shipping Core Services: Cost sharing Optional Svcs: Cost Sharing Use-based Services: Pay for use Level 1: Back Office Level 2: Business Operations Financial Management E & S Management Legal Counsel / Public Affairs Legal Counsel / Public Affairs Shared by Anchor Partners Shared by Anchor Partners, Clients FP&A, ReportingGov’t RelESMS Develop

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Shared Business Services Anchor Partners split base costs and revenues from secondary clients; pay use fees for use-based services Secondary Clients pay retainer for access to core services and fees for use-based services Level 2 Business Operation Cost sharing by Anchor partners and fee for service for secondary partners Level 2 Business Operation Cost sharing by Anchor partners and fee for service for secondary partners Level 1 Back Office Core Services: Cost sharing by Anchor partners and fee for service for secondary partners Optional Services: Cost sharing by Anchor partners and fee for service for secondary partners Used-based Services: Used- based fees (# phones, # of employees, # cars, km driven)

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Cost Reduction and Service Level Increase OptionsEstimated Monthly Overhead Operational Cost Time required Notes NRG “Go-it-alone”$55, monthsAssumes identifying and hiring appropriate personnel is fast and efficient NRG cost if Shared Services Model with L1 and L2 sharing and Office/Utilities $46,9802 monthsHigher service levels in Office and Level 2 functions

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Expanding on Existing DloHaiti Organization Level 1: Back Office Level 2: Business Operations Financial Management E & S Management Legal / Public Affairs Legal / Public Affairs Shared by Anchor Partners Shared by Anchor Partners, Clients FP&A, ReportingIn-House CounselCompliance Mgr Financial Operations Local HR Legal Admin Facilities and Comm E & S Admin E & S Admin Logistics & Security Alexandra Saint Elien Guerdy St. Louis Faustin TBITBH Finance Assistant Purchasing Assistant Bookkeeper Plain text = current dloHaiti staff Italics = to be hired HR AssistantE&S Admin Legal Admin Secretarial Staff Drivers & Dispatch Outsourced security contracts Office assistant / receptionist and cleaners IT / Comm Manager

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Proposed Partnership Terms Equity investment in dloHaiti: – 50% in-kind and 50% cash – In kind: Installation of 30 kW Solar Canopy at 20 sites – Equivalent cash investment by NRG or Island NRG into dloHaiti Investor to take 50% of common shares of dloHaiti – 2 Board Seats (expand to 7 seats from 5) – Pre-Emptive Rights on future financing Joint investment by Island NRG and dloHaiti into Shared Business Ops Platform managed by dloHaiti

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid DloHaiti Background: Market-Based Solution for Last-Mile Distribution for the Bottom of the Pyramid Transforming Communities through Efficient Solutions for Clean Drinking Water Consumer Product Distribution Distributed Energy Solutions

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Dlo Haiti: Model for BoP Market Penetration & Scalable SME Investment 1.Startup company bringing clean water and sustainable jobs to non-urban areas in Haiti 1.Building more efficient last- mile distribution networks for the difficult-to-reach BoP 2.Model for repeatable & scalable business for large scale investment

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid dloHaiti is building a network of water treatment and last-mile distribution centers for essential consumer goods throughout Haiti

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Why Start with Water? Water Trucking in Haiti is Expensive, Dirty, and Unreliable Private water trucking is main source of potable water in Haiti Inefficient cost model  high prices: lowest price is 12¢/gallon Kiosks, bottles, sachets all depend on trucking Kiosks Tanks filled by trucks km Central Purification Facility Truck Distribution km Individuals and Homes km Sachets and Jugs 12¢/gal Up to 50¢/gal

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid DloHaiti’s Network: A more efficient model with Local Production and Micro-distribution 0 - 5km 15-20¢/gal 8-10¢/gal Jug delivery to schools and local network of shops Fill at kiosk & Jug exchange 8-10¢/gal Local Wholesale Distribution 0 - 5km Lower costs Improved water quality Access to underserved areas Improved services Lower costs Improved water quality Access to underserved areas Improved services DloHaiti Site

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid dloHaiti Kiosks produce drinking water bottled in 5- and 4-gallon jugs to be delivered to neighborhood stores, schools, clinics, churches, and businesses How the Water Business Works

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid The same trikes deliver other products that dloHaiti distributes, such as milk and bottled drinks Low-cost motorcycle trikes deliver to local stores and community institutions to serve difficult to reach neighborhoods in the community

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid These local stores resell dloHaiti water, called Ovive, to the homes surrounding them. They also sell other products that dloHaiti distributes, such as milk and bottled drinks

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Local stores are nominated by the community and vetted to become dloHaiti “Distributeurs Authorisés” selling our products

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Water treatment and strict Quality Control procedures guarantee high product quality and ensure safe water is available at low cost to the community All kiosk staff are locally hired and trained by dloHaiti Kiosks operate on renewable solar energy and cause little local pollution

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Water treatment and strict Quality Control procedures guarantee high product quality and ensure safe water is available at low cost in the community

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Being open as a retail point promotes transparency and daily engagement with the community. The high-quality facility represents progress and is an essential part of the marketing strategy

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Each treatment center is also a retail point, ensuring that our local staff stay engaged with the community and that everyone can see the high level of quality control and efficiency Each dloHaiti site becomes an essential change agent to help transforming remote communities

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Result: Transforming Hard-to-Reach Communities

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Entry Point to Underserved Communities Reliable local presence Staff from local community Provisioning of valuable, reasonably priced water Community buy- in and sense of ownership Passive security Trust in Brand Trust in Brand Word-of-Mouth Marketing Platform for local retail sales & distribution Platform for Local Energy Distribution Database of consumers & purchase behavior data Scalable and accountable operations Job creation in local community

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Centers of Economic Activity & Micro-Distribution Tapping Underserved Markets to Make Essential Products More Accessible dloHaiti Mission: Make essential products and services better and more accessible for underserved Haitian consumers to improve quality of life and to drive sustainable economic development in underserved markets. dloHaiti Mission: Make essential products and services better and more accessible for underserved Haitian consumers to improve quality of life and to drive sustainable economic development in underserved markets. Conduit for Best-of-Breed Partners to Reach Difficult-to-Reach markets: Drinks distribution including milk and returnable bottled products Ice and chilled products Energy production and energy products: ice, pay-as-you-go batteries, local micro- grids Conduit for Best-of-Breed Partners to Reach Difficult-to-Reach markets: Drinks distribution including milk and returnable bottled products Ice and chilled products Energy production and energy products: ice, pay-as-you-go batteries, local micro- grids Micro-Grid Energy Consumer Solar Local Milk Ice Consumer Distribution

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Regions for 20-site Pilot in Haiti Region 1: Ouest Target for Year 1 Region 2: Cap Haitian Target for Year 2 Region 1a Region 1b Region 2a Region 2b Region 3: Gonaives Timeframe TBD

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Project Open Source: Mobile Enabled IT Real Time Data Mobile-Enabled, Tablet-Based Point of Sale and Customer Data Management Transparency Accountability Scalability Profitability Transparency Accountability Scalability Profitability

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Team: Haitian and International Expertise Jim Chu, CEO Silicon Valley entrepreneur and investor Managed businesses from startup to global scale Kenneth Michel, COO Haitian entrepreneur and respected businessman 20 years experience managing front-line workforces in Haiti Guerdy St Louis Faustin, Human Resources Professional HR Management with focus on scalability Experience many international groups including JPHRO and Citibank Alexandra Saint Elien, Finance Haitian born and US Educated, returning to Haiti 8 years of finance experience at global firms (Verizon

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Beyond Haiti Common market conditions worldwide – Lack of public infrastructure – Reliance on water trucking – Availability of ground water – Awareness of importance of treated water Latin American and West Africa: over 200M population in similar conditions Improve the quality of lives of hundreds of millions

Clean Water and Energy for Untapped Markets at the Bottom of the Pyramid Thank You Backup slides follow