About: DC Power Solution

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Our Goal: Micro Hybrid Energy Solution Business Model
The micro hybrid energy solution business model is comprised of 4 major functional layers.
(Account Management, Consulting/Solution Package Presentation, Hardware/Software
Supply, Installation and Maintenance).

Micro Hybrid Energy Solution Model

Explanation Competitive Edge

-As the focal point for the customer,
Account Management selects the solution package, manages
the installation and maintenance.
Consulting / -Determine the energy needs of the
Solution Package Presentation customer, and put together a H/W S/W
system package to meet the demand.
-Supply the necessary components to
PV, DG,
Controller SWT form the energy source. Utilize off the
Battery...
shelf products depending on spec.
-Close working relationship with the
customer.
-Project management capabilities enabling
one stop service.
-Ability to understand the customer’s needs.
-Ability to integrate components into a
system.
-Price competitiveness (performance /cost)
-Product availability (volume, lead time)

-Install the solution package and -Regional coverage

Installation / Maintenance provide regular maintenance thereafter. -Technical competence

Depending on which functions are retained, position in the industry (domination) ,

regional outreach, and profit level will be affected.

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 Our Goal: Evolution of the Business Model
The functions necessary in the business model evolution varies by stage. (Utilize alliances
with partner companies to launch quickly, and establish position in the industry. Mid-term,
plans are in place to develop a proprietary controller to enhance competitiveness.)
SWT Only Business Hybrid Package Business Hybrid Solution Business
Account Management Account Management Account Management
Package Presentation Package Presentation Package Presentation
Business
Domain Controller SWT Others Controller SWT Others Controller SWT Others

Installation / Maintenance Installation / Maintenance Installation / Maintenance

Existing Players Evance, Bergey, Southwest Inala-T、Terzobix、Syrian Ericsson、NSN、Emerson、

(Example: Telecom) Wind Power, other SWT Engineering… Huawei…
manufacturers.

Necessary -Hardware excellence (Cost / -Own Controller -Multi-directional expansion

Abilities and Performance) (Superior match with own ability.
Functions -Ease of integration with SWT) -Control over other vendors.
other components -Consulting ability

Zephyr’s -Already established reputation -Battery charge/discharge -Contact with major operators
Strengths with operators (lightweight, management technology and in telecom.
durable, etc.) knowhow from business in Japan. -Overseas distributor network.
-Complex SWT control knowledge.
-Lower energy yield resulting -No controller -Contact quality compared to
Zephyr’s in higher cost performance -Consulting experience in the existing players.
Weaknesses -Production capacity and particular field. -Contact with installation and
availability maintenance players.
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Hybrid Package － Etisalat UAE Model
Operators expect a turn-key power supply system to be added as an additional enclosure to
the enclosure containing communication equipment. (The enclosures are connected with
power cables only and do not interact.)

Diesel Generator Enclosure ｘ 2

and Fuel Tank
Communications
Enclosure

Power Supply
Enclosure

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Hybrid Package － DC Power Cube
Zephyr’s Hybrid Package“DC Power Cube”controls the various power sources and battery
charge/discharge for optimized battery life, and provides stable energy to the communication
equipment.

DC Power Cube
DC Power Cube Functions
DC Air-conditioner
- Generator Control
Communication ・ SWT Control
Enclosure ・ PV Control
・Diesel Switch
Battery
Bank - AC Rectifier
- Battery Charge/Discharge
Management
- Remote Monitoring
Controller Other

Existing controllers cannot control the SWT, therefore performance is not optimized.
Zephyr’s knowhow in SWT technology could be a major differentiation factor.
(Also, the ‘DC Power Cube’ can be applied as power supply for off-grid areas.)
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Hybrid Package － 2 Business Models
The hybrid package will have 2 different business models depending on sales channel.

Sales Products Sales Channel Price

＜Entire System＞
- Generator（SWT/PV/DG) Operators and mid to small
- Controller sized integrators
- Shelter (with DC Air-conditioning) →Off the shelf items will be
Full sold as wholesaler and profit
Package - Battery 5 M Yen +
- Integration margins will not be high.
(Optimize component volume and
controller settings based on load
20% of total
and environmental conditions)
sales leads

＜Proprietary Products Only＞ Integrators (Ericsson,

- SWT NSN, etc.)
→Off the shelf items will be
- Controller 2 M Yen +
Minimum cheaper through larger
- Integration accounts, and this model
Package
(A higher margin will be added to will be the majority.
the SWT and controller)
80% of total
sales leads