P2 Solar, a company listed on the OTCBB under the symbol PTOS, presented this deck in July 2011 to outline its strategy for developing grid-connected photovoltaic (PV) solar farms. Headquartered in Surrey, BC, the company aimed to scale from securing 25 MW of capacity in 2011 to 100 MW by 2014. The presentation relies heavily on macro-environmental benefits of solar energy and detailed professional biographies of its management and advisors, including a former Canadian Minister of Natural Resources. While it provides a clear roadmap for capacity growth and identifies target markets in India,…
Key takeaways
- The company was founded in March 2009 and was already listed on the OTCBB (symbol: PTOS) at the time of the presentation (Slide 3).
- P2 Solar set a specific three-year growth target to reach 100 MW of PV solar power capacity by 2014 (Slide 5).
- The strategy involves identifying low-risk, profitable projects in emerging markets specifically in India, Europe, and Canada (Slide 5).
- Solar energy represented only 0.07% of total worldwide electrical power used as of the data cited, highlighting a massive market gap (Slide 7).
- The management team features significant public market experience, with the CEO having over 20 years in options, futures, and running public companies (Slide 11).
- The advisory board includes Herb Dhaliwal, a former Canadian Member of Parliament and Minister of Natural Resources (Slide 13).
- Valuation is framed through a 'Valuation of Peers' table, comparing P2 Solar to industry giants like Canadian Solar and Trina Solar based on 2010 data (Slide 15).
- The deck omits a specific financial 'ask' or use of proceeds, functioning more as a corporate update for a public entity (Slide 17).
P2 Solar Investor Presentation: A 2011 Strategic Roadmap
The P2 Solar deck, dated July 2011, serves as a corporate overview for a company already navigating the public markets via the OTCBB. At 18 slides (9 provided for this analysis), it follows a traditional structure that emphasizes management credibility and market opportunity over granular unit economics. The company, based in Surrey, British Columbia, positions itself as a developer of solar farms rather than a pure-play technology manufacturer.
Slide 1: Title Slide
The cover slide features the P2 Solar logo with the tagline "Powering Change." It establishes the date as July 2011 and uses high-contrast imagery of solar panels. The branding is consistent with the renewable energy sector of the early 2010s, focusing on the hardware of the industry.
Slide 3: Key Facts and Partnerships
This slide provides the foundational data for the company. It notes that P2 Solar was founded in March 2009 and is headquartered in Surrey, BC, Canada. Crucially, it identifies the company as a public entity listed on the OTCBB under the symbol PTOS. As of July 2011, the company had 9 employees.
Phase I (2011): Secure 25 MW of PV capacity. · Phase II (2012): Grow to 50 MW of capacity. · Phase III (2013): Reach 100 MW of capacity.
It also lists six partners, ranging from Korean integrators (OSolar, Inc.) to Indian manufacturers (Photonix Solar PVT) and social media marketing firms (MWKS). This suggests a lean corporate structure that relies on an ecosystem of specialists to execute large-scale infrastructure projects.
Slide 5: What We Do?
This slide defines the core business strategy. The company identifies its goal as becoming a leader in developing PV Solar Farms. It specifies three target markets: India, Europe, and Canada. The slide claims that "extensive analysis" has been performed to identify "low risk, profitable solar projects" in these regions. The 100 MW target is reiterated, though the completion date is slightly adjusted to "by the year 2014" compared to the Phase III end-of-year 2013 target on the previous slide.
Slide 7: Benefits of Solar Energy over Fossil Fuels
This is a classic macro-environment slide. It highlights that solar represented only 0.07% of total worldwide electrical power used (citing 2007 data). A pie chart shows the dominance of fossil fuels at 66%, with nuclear at 15% and hydroelectric at 17%. The slide lists five benefits of solar, including environmental benignity, lack of price volatility compared to fossil fuels, and reduction of dependency on foreign energy sources. This slide aims to convince the investor of the "tailwinds" supporting the sector rather than the specific merits of P2 Solar's operations.
Slide 9: Technology
P2 Solar outlines the hardware components of their power plants. They categorize PV modules into three types: Mono-crystalline, Poly-crystalline, and Amorphous (Thin Film). They also list three mounting variations: Fixed, Single Axis Tracking, and Dual Axis Tracking. The slide is educational in nature, suggesting that the company is technology-agnostic and will deploy whichever hardware best fits a specific project's requirements.
Slide 11: Corporate Management I
The presentation devotes significant space to the biographies of the leadership team. Raj-Mohinder Gurm (President/CEO/Director) is highlighted for his 20 years of experience in public markets, specifically in options and futures. His history includes founding Xanatel Communications and leading Canoil Exploration Corporation through an RTO. Bali Randhawa (COO) is presented as a finance specialist with a background at Ziff Brothers Investments, Deloitte & Touche, and Scotia Capital. His CFA and CPA credentials emphasize a focus on financial controls and risk assessment.
Slide 13: Corporate Advisors
The advisory board is used to bolster technical and political credibility. Brian Kryska (Chief Technical Advisor) brings 34 years of engineering experience and has reportedly arranged deals in excess of $200 million. Herb Dhaliwal (Senior Advisor) is the most prominent name, having served as a Canadian Member of Parliament and the Minister of Natural Resources. His inclusion is a clear signal to investors that the company has the political capital necessary to navigate the complex regulatory environments of the energy sector.
Slide 15: Valuation of Peers
To justify its potential market value, P2 Solar provides a table of peer companies as of April 20, 2010. The list includes:
Canadian Solar Inc. · JA Solar Holdings Co Ltd · Solarfun Power Holdings Co Ltd · Suntech Power Hldgs Co Ltd · Trina Solar Ltd · Yingli Green Energy Holding Co Ltd
The slide calculates a Peer Group Average P/E Ratio (NTM) of 11.40 and an EV/Sales (TTM) of 1.64. By providing these benchmarks, P2 Solar is setting the stage for how its own valuation should be calculated as it hits its MW capacity milestones.
Slide 17: Safe Harbor Statement
The final provided slide is a standard legal disclaimer regarding forward-looking statements. It references the Securities Litigation Reform Act of 1995 and notes that actual results could differ due to risk factors like general business conditions and political risks. This is a mandatory inclusion for a public company presentation.
What P2 Solar Does Well
The deck excels at establishing institutional credibility . By including a former Minister of Natural Resources and a management team with deep public market experience, the company addresses the "trust gap" often associated with OTCBB-listed entities. The roadmap is also refreshingly simple: the company is not promising a technological breakthrough, but rather a disciplined execution of capacity growth (25MW to 100MW).
The use of peer valuation metrics (Slide 15) is a smart move for a public company. It gives investors a clear framework for how to value the stock based on future earnings and sales, rather than forcing them to guess at a fair multiple. The geographic focus on India, Europe, and Canada also suggests a diversified approach to regulatory risk.
What is Missing from the Deck
The most glaring omission is project-level economics . While the deck mentions "profitable solar projects," it does not provide a single example of the Internal Rate of Return (IRR), Power Purchase Agreement (PPA) terms, or the cost per watt of installation for their specific pipeline. For an infrastructure developer, these numbers are the primary drivers of investment decisions.
Additionally, there is no financial 'ask' . The deck functions as a corporate update, but it fails to specify how much capital the company is looking to raise or how that capital will be allocated across the three phases of growth. There is also a lack of a competitive landscape analysis that explains why P2 Solar can secure these projects over the larger peers listed on Slide 15.
Lessons for Founders
Founders in the energy or infrastructure space can learn several things from this deck: 1. Leverage Political Capital: In sectors where permitting and government subsidies are the difference between success and failure, having advisors with high-level government experience (like Herb Dhaliwal) is a massive asset that should be highlighted early. 2. Define Clear Capacity Milestones: P2 Solar’s 25/50/100 MW roadmap is easy to remember and easy to track. Investors appreciate binary milestones that allow them to measure management's performance over time. 3. Use Peer Benchmarking: If you are in a sector with established public comps, use their multiples to frame your valuation. It grounds your projections in market reality and shows you understand how the market will eventually exit or value your company. 4. Be Transparent About Partnerships: By listing their integrators and manufacturers, P2 Solar shows they understand their place in the value chain. They aren't pretending to be a manufacturer; they are the developer and orchestrator, which is a valid and scalable business model.
Frequently asked questions
- What is P2 Solar's primary business model according to the deck?
- P2 Solar focuses on developing grid-connected photovoltaic (PV) solar power farms. Their strategy involves identifying profitable, low-risk projects in specific geographic regions—India, Europe, and Canada—and scaling capacity to 100 MW over a three-year period. They act as a developer, leveraging partners for integration and manufacturing.
- Who are the key partners mentioned in the presentation?
- The company lists several strategic partners on Slide 3, including OSolar, Inc. (a Korean-based integrator), Sinova Capital (private equity), Solarise Power Inc. (panel technology developer), and Photonix Solar PVT (a manufacturer in India). They also list marketing partners like MUNCmedia and MWKS.
- What technology does P2 Solar utilize for its solar farms?
- Slide 9 outlines that they use standard PV solar panels, specifically Mono-crystalline, Poly-crystalline, and Thin Film (Amorphous) modules. They also utilize various mounting systems, including fixed, single-axis tracking, and dual-axis tracking systems to optimize energy capture.
- What is the significance of the management team's background?
- The team is heavily weighted toward public market administration and political influence. CEO Raj-Mohinder Gurm has extensive experience in proprietary trading and RTOs, while Senior Advisor Herb Dhaliwal provides high-level political connections as a former Canadian Minister of Natural Resources, which is critical for energy sector permitting and international trade.
- How does the deck justify the investment opportunity?
- The deck uses a macro-to-micro approach. It starts with the global need for renewable energy (Slide 7), moves to the company's specific capacity targets (Slide 3), and concludes with a peer valuation table (Slide 15). By showing that peers trade at an average P/E of 11.40, they imply a valuation benchmark for their own growth.
