Ann: Investor Presentation, page-48

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sam83

46 Posts.

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07/12/20

09:14

Post #: 49383102
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Originally posted by DoubleDown!: ↑

The idea behind the financing is to show that it can be cost effective to use the system. This idea of payback is a bit flawed really. You're not trying to payback the entire system, just the marginal cost if it versus plain windows. The preso does refer to marginal cost so in that example the 8827m2 of windows cost USD$1.32M ($1495/m2 - seems pretty high to me).

The annual value is $57k in electricity savings, $8k in building air con savings and $76k in tax savings. Those tax savings I'd need explained to me a bit better. In Australia you'd depreciate it over 10-20 years so at a tax rate of 30% would save you roughly $40k a year in tax over 10 years (or $20k over 20).

I agree that the rest of those calculations look a bit dicey. Trying to include tax credits and extrapolate those out to an increase in building value (without considering the tax implication of that!) is a bit disingenuous.

But even leaving the tax side out the $1.32m is paid back after 22 years with just the electricity and air con costs. That 22 is borderline in my view, you'd want to make sure the energy generation estimates were accurate.

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That is a fair point you make Double Down!

I haven't followed this stock for a while, but I don't think CPV has ever posted a price for their windows, but I could be wrong. I assume the $1495/m2 includes the windows, wiring, installation, etc so that price per sqm might be on the money.

Those figures seem credible, yeah the tax savings I assume you would get that with any windows then.

Whilst it will break even in 22 years, I think most businesses aren't going to get these windows based on a financial decision.

Hopefully they can improve the technology, I think if they can get to 10-20% pay back each year, the product will have a lot more interest.

At this moment, I will remain on the sidelines, but best of luck to all holding.

CPV Price at posting: 37.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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