Revised

PRESENTED BY: ELIZABETH DILLARDMAN3802

Diode Inc.

The problem with most light bulbs:

high costing electric bills, maintenance issues, and environmental issues.

Mission statement: Save the community power.

Vision: Skies the limit; lighting is everywhere.

Values: Allow companies to be environmentally safe while also saving money.

Strategies: Start up, Promote, Grow, Name Recognition.

Lighting Industry/Market Potential

Lighting industry is dominated by several international name brands: GE, Sylvania(Osram), Philips who are focused on Fluorescent & Incandescent lighting. Market potential: Per Israel Morejon, President of

LedNovation/Tampa: the U.S. Market buys over 5.7 million lights per day, 365 days per year = 2,080,500,000 lights/yr

A change to LED lighting helped Mandalay Bay Resort & Casino in Las Vegas lower their electricity costs from $36 million/yr. to $4 million/yr. A reduction of 80%, not including the savings from maintenance reductions.

Market focus is the commercial market potential of 2 billion plus lights in the U.S. marketplace

Market focus is the commercial market potential of 2 billion plus lights in the U.S. marketplace

Not attempting to pursue the commodity market such for individuals

Not attempting to pursue the commodity market such for individuals

T8’s (Fluorescent tube lights) are the most commercially required light for office lighting

Par 30’s & Par 38’s are flood lights used in architectural highlight lighting in office locations.

MR 16’s are used in commercially to display products.

University of Miami maintenance costs for changing a light bulb is $56 (Lower maintenance cost plus lower electricity costs = savings)

Market Objective

Competition

Competition: Toshiba: Japan, Par 30 & 38, Plastic (6 LEDs), Lower Cost, Magazine, life time.

VA Opto: USA, T8, Par 30 & 38, MR16, Metal (7 LEDs), Higher Cost, Trade Shows, Constancy

GSSI: USA, Street Lights, T8, Par 20, 30 & 38, Plastic (138 LEDs) higher Cost, Internet, Price

Competitior Name Strength Weakness Opportunity Threat

Toshiba Par 30 & 38 Limited Product Line Lower Cost Cost & Product Name Recogition

VA Opto T8; Par 30 & 38; MR 16 Product Consistancy Lower Cost Volume pricing; production Capability

GSSI Street Lights; T8; Par 20,30 & 38; Mr16 Name Recognition Higher Cost Broader product offering

Business Model

Business Model: Focus on large potential customers for LED Lighting: Resorts, Cruise Lines, Office Complexes.

Sales (Commission 8%)

Expenses

Expenses 2011 Profit/(Loss) 2012 Profit/(Loss)2 2013 Profit/(Loss)3Salaries 300,000.00$ 450,000.00$ 600,000.00$ Travel 10,000.00$ 12,500.00$ 15,000.00$ Insurance 3,000.00$ 4,000.00$ 5,000.00$ Cars 60,000.00$ 75,000.00$ 80,000.00$ Entertainment 10,000.00$ 15,000.00$ 20,000.00$ total 383,000.00$ 85,000.00$ 556,500.00$ 239,500.00$ 720,000.00$ 820,000.00$

Target Market 2011 Commission 2012 Commission2 2013 commission3Resorts 5,000,000.00$ 400,000.00$ 7,500,000.00$ 600,000.00$ 15,000,000.00$ 1,200,000.00$ Cruise Lines 250,000.00$ 20,000.00$ 1,250,000.00$ 100,000.00$ 2,500,000.00$ 200,000.00$ Offi ce Complex 600,000.00$ 48,000.00$ 1,200,000.00$ 96,000.00$ 1,750,000.00$ 140,000.00$ Total 5,850,000.00$ 468,000.00$ 9,950,000.00$ 796,000.00$ 19,250,000.00$ 1,540,000.00$

Milestones

Large Lighting Market (2010)

5.7 million bulbs/day in the USA

Develop Commercial Product Offerings (2011)

Gain U.L. Approvals (2011)

Obtain Initial Orders (2011)

Gain Market Interest (2012)

Increased sales Company Acquired (2013)

Large market potential for LED lighting:Large market potential for LED lighting:

$3 Trillion world wide market

Serves all Markets with Manufacturing in USA

Investment Opportunities