Following figure shows different locations that will have UEC’s charging infrastructure network. Each location might have different type of CRU installed based on the requirements.

CRU Infrastructure Distribution Segments

CRU Infrastructure Distribution Segments

Following figure shows the different categories of business partners UEC works with. The particular partners identified in each of these categories.

Partner BusinessPartner Business

Business Partners

Business Category Charges  per Customer Visit Target Business Partners No. of Locations w/ CRU installation
Malls $ 2.50 The Mall

Mediterranean Cosmos

10
Supermarkets $ 1.00 Carrefour

Metro Cash and Carry

Praktiker

SPAR

100
Movie Halls $ 1.50 Odeon

Village

Moviestar

Cineland Pantelis

15
Club Stores $ 1.00 Local Businesses 20
Restaurants $ 1.00 Local Businesses 60
Coffee Shops $ 0.25 Local Businesses 50
Hotels $ 6.00 Best Western

Hilton International

Holiday Inn

Leptos Hotel and Resorts

Marriott

20

Note:

  1. Above values are flat rates charged to businesses assumed in the financial model.
  2. Time of EV charging is assumed to be the average time a consumer spends at such business locations.
  3. Business partners have no other expense (UEC pays for electricity and installation of the CRU)
  4. Charges may vary in actual agreement with partner business.
  5. For certain agreements with partner businesses, the consumer may have to share a portion of the cost.

Following figure shows a comparison of (i) UEC Revenue (charges per customer visit for each business category, Table 4 above) and Business Partner Gross Profit (ii) UEC Revenue and Business Partner Gross Profit reduced by Sales, General and Administration (SG&A). The Business Partner Profits used are generated from the customers diverted by UEC to partner business location with CRU installation.

UEC Revenue vs. Business Partner Profits

UEC Revenue vs. Business Partner Profits

The percentages in the figure are calculated using the formula shown below for Malls:

  • Mall [UEC Revenue (from Partner Biz category) vs. Partner Gross Profit] percentage= Mall [Charges per customer visit by UEC] / Mall[Gross Profit generated per customer in that business category] X 100
  • Mall [UEC Revenue (from Partner Biz category) vs. Partner GP-SG&A Exp] percentage= Mall [Charges per customer visit by UEC] / Mall[Gross Profit generated per customer in that business category-average spending in SG&A for one customer] X 100

Next figure shows a comparison of (i) UEC Gross Profit (which is simply the electricity cost UEC spends per customer on a visit to a business category deducted from the charges for each customer visit to that business category) and Business Partner Gross Profit (ii) UEC Gross Profit and Business Partner Gross Profit reduced by Sales, General and Administration (SG&A). The Business Partner Profits used are generated from the customers diverted by UEC to partner business location with CRU installation. It is important to remember that the electricity expense is paid by UEC.

UEC Gross Profit vs Business Partner Profits

UEC Gross Profit vs Business Partner Profits

The percentages in the figure are calculated using the formula shown below for Malls:

  • Mall [UEC Gross Profit (from Partner Biz category) vs. Partner Gross Profit] percentage= Mall [Charges per customer visit by UEC-Electricity expense for UEC in that visit] / Mall[Gross Profit generated per customer in that business category] X 100
  • Mall [UEC Gross Profit (from Partner Biz category) vs. Partner GP-SG&A Exp] percentage= Mall [Charges per customer visit by UEC-Electricity expense for UEC in that visit] / Mall[Gross Profit generated per customer in that business category-average spending in SG&A for one customer] x 100

Value for Business Partners

The values in partnering with UEC are listed below:

  1. Free installation of advanced CRU at partner business locations.
  2. No additional cost of electricity charged to businesses
  3. Advantage of being part of UEC’s ubiquitous CRU network
  4. Free charging for their EV/PHEV business customers
  5. Highly targeted advertising to green consumer
  6. Free consulting to optimize spending on going green to get maximum tax and image benefit.
  7. UEC connects these partner businesses with other renewable partner companies for cost effective installation of other renewable products.
  8. UEC rewards the partner business consumers for charging at a UEC CRU and for doing business with their partner businesses. These reward points can be redeemed at any other partner business location in exchange for free miles or products at partner businesses.

Value creation methodology-CRU features

UEC CRU network has the features shown below which makes them attractive to EV/PHEV consumers:

  1. UEC’s charging network is free and ubiquitous
  2. Safety features to monitor current during charging
  3. Free reporting on battery operating conditions
  4. Consumers can check real-time availability of CRU parking spots
  5. Consumers automobiles have additional vehicle security during charging
  6. Consumer can opt to get free text messages reporting the status of charging
  7. For smart phone users free mobile app is provided to check charge status from any location
  8. EV/PHEV owners will be rewarded for charging at a UEC CRU. These reward points can be redeemed at a business location in exchange for a partner business product or free miles within the CRU network.

Value creation methodology-Website features

UEC’s website has the utilities listed below which make it a valuable place for consumers to visit:

  1. CRU network maps: EV/PHEV consumers can go to the website to find restaurants, coffee shops, Malls, highway rest areas, grocery chains or other parking spots with CRUs installed to make sure that they have easy access to charging in their trips.
  2. UEC website has a carbon foot print calculator which gives users an opportunity to know the impact their life style on the environment and how to reduce it for no additional cost.
  3. The UEC website provides information about green products and choices encompassing all works of life and about businesses who has taken initiative to be environment friendly.

UEC generates revenue on its website by displaying banner ads and test based ads of partner businesses with green initiatives. UEC also displays embedded roll over ads on the CRU maps. UEC charges the business for click and actions (for example purchase of a partner business product through UEC website) as defined by partner businesses. Advertising through impression display on UEC’s website is free of cost.

Value creation methodology- Reward systems

EV/PHEV consumers are awarded reward points for charging at an UEC CRU or for purchasing at a CRU installed business. These reward points can be redeemed for free miles or products at any other partner business.

Value Creation Methodology - Consumer Reward

Value Creation Methodology – Consumer Reward

Partner Business Revenue through EV/PHEV customers

Following figure shows the projected dollar value of business purchases that will be made by EV/PHEV owners served by UEC between FY2010-2016 in CA. The numbers are arrived from the total number of EV/PHEV sales projections, UEC served market share, total volume of consumers reached through cars, household size, and number of cars owned by each household, average purchase made by consumers in a visit to a particular category of business partner and the average visit to each partner business in a year in CA between the projected years. Revenue for UEC partners though UEC’s charging infrastructure in CA is projected to be $450M in the year 2016.

Partner Business Revenue with CRU Installation

Partner Business Revenue with CRU Installation

Partner Business Revenue through UEC website

Following figure below shows the projected value of business purchases that will be made through the UEC website in California. The number for the website are arrived by considering total number of internet users in California, total page views in California, fraction of the total page views in California averaged over websites in similar business and their growth patterns over 5 years, average time spent on such websites, number of impressions that can be displayed during a webpage visit, statistical percentage for impression to purchase conversion rates and statistical percentage for impression to click conversion rates. Currently businesses are charged for impression display as well. UEC business partners get free impression display. In the Year 2016 revenue for partner businesses through UEC’s website is projected to be $6.4 million.

Partner Biz Revenue Through Website

Partner Biz Revenue Through Website