Background and Potential Opportunities for selco harish Hande

Background and Potential Opportunities for SELCO

• Harish Hande

• VP

• November 2003

Background & Overview

• Background & Overview

• Recent Developments

• Long-term Opportunities

• Next Steps

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

Background & Overview

• Background & Overview

• Recent Developments

• Long-term Opportunities

• Next Steps

SELCO has recently expanded its product offerings beyond solar electric lighting systems

• SELCO has recently expanded its product offerings beyond solar electric lighting systems

• With its network of service centers, trained sales force, and service technicians, SELCO has the opportunity to introduce additional products and services

• Telecommunications
• Water Pumping coupled with drip Irrigation
• Refrigeration
• Other productive uses, e.g., powering rice mills, spray painting machines etc.

• SELCO believes that it can be a valuable channel partner for manufacturers and distributors lacking direct retail access to customers.

• SELCO also believes that with its network of service centers coupled with its excellent relationship with rural financial institutions, it can provide a fantastic opportunity to like minded organization to sell and promote technologies that could directly impact the quality of life in the rural areas.

SELCO has entering the home and small business telecommunications market through sales of wireless local loop telephones.

• SELCO has entering the home and small business telecommunications market through sales of wireless local loop telephones.

• In late August, 2003 SELCO sold its first 50 wireless local loop (WLL) telephone systems through Mobitel and the Sri Lankan Telecommunications administration.

• Each WLL unit employs a radio to connect individual homes to central transmitter/receivers.

• The combination of wireless telephone and power provide families and businesses with the enter the 21st century without waiting for wired power or communications.

SELCO has entered into product development and product design Currently developing an integrated type wall-mounted battery box.

• SELCO has entered into product development and product design Currently developing an integrated type wall-mounted battery box.

• With its installed base, technical capabilities, and understanding of the market, SELCO believes it can be a SELCO is tremendous source of information in product design.

• SELCO expects to take control of product development and design, but partner with contract manufacturer rather than begin manufacturing directly.

• SELCO can be a source of value for other product design firms interested in direct testing, market feedback, and beta-testing.

Background & Overview

• Background & Overview

• Recent Developments

• Long-term Opportunities

• Next Steps

Background & Overview

• Background & Overview

• Recent Developments

• Long-term Opportunities

• Next Steps

Next Steps

• SELCO anticipates seeking additional equity in mid-2004 to undertake additional opportunities.

• We believe there are a number of milestones that should be completed prior to a successful equity offering.

• These milestone relate to:

• Advancements in SELCO Operations:
• Identification of New Opportunities
• Preparation for Investment Offering

• SELCO believes that it will be able to complete these required tasks and begin full equity round by March, 2004, complete equity round by mid-to-late 2004.

Next Steps

• Operational Improvements:

• Roll-out of Company-wide Management Information System
• Standard company structures and policies implemented
• Parent company management team fleshed out
• Indian PVMTI investment-led growth in sales outlets
• Sri Lankan -- Cashflow improvements realized; A/R reduced
• Vietnam future resolved (closure or scale-up as project office)

• New Opportunity Identification

• Next 2-3 Country Opportunities Identified
• Feedback from additional products introductions

Next Steps

• Investment Materials Preparation:

• Business Plan written
• Financial Projections Complete
• Polished Investment Presentation Ready
• Offering Documents Drafted
• SELCO consolidated March 31, 2004 audit

• Investors Identification & Roadshow

• Potential Investors identified
• Initial contact made and shortlist identified
• SELCO full road show presentations to interested investors

• Closing

• Closure of $2 to $5 million in equity

Next Steps

• Who is the appropriate investor audience for SELCO?

• What additional information / backup documentation/proof is needed to present a truly compelling story?

• How should we prioritize milestone achievement prior to equity round?