12. Financial Projections

5-year revenue and profit forecasts

5-Year Revenue and Profit Forecasts

Our 5-year plan outlines a clear path toward revenue generation and profitability, based on conservative estimates and the assumption that demand for green IT solutions will continue to grow globally. We believe this approach presents a scalable and high-return investment opportunity.

Total Estimated Costs Over 5 Years:

• Fab Setup:
  • Initial setup (property, rights, space): €0.5M
  • Green production site: €5M
  • Total fab setup: €5.5M
• Operating Costs:
  • Employee salaries (5 years): €7.5M
  • Materials: €10M
  • Miscellaneous costs (marketing, legal, etc.): €2M
• IT Hardware Costs:
  • IT hardware cost per container (64xH200 configuration): €0.6M per container
  • 10 Containers for global deployment (showcases & income generation): €6M
  • Additional 20 containers for Europe-based income generation: €12M

Total estimated investment over 5 years: €43M to €45M
(Additional variance of €4M to €19M depending on market fluctuations in hardware, materials, and labor costs.)

Revenue Projections Over 5 Years:

1. Container Revenue Model:
   • Each IT Cube (container) runs for 26,280 hours over the first 3 years under warranty.
   • For the 64xH200 GPUs:
     • Total hours: 1,681,920 GPU hours at €2/h = €3.36M per container (over 3 years).
   • For the 1536 CPU Cores:
     • Total hours: 40,366,080 CPU hours at €0.01/h = €0.4M per container (over 3 years).
2. Years 4-5 (Post-Warranty Period):
   • 17,520 GPU hours (post-warranty, reduced to €1/h):
     • Total hours: 1,121,280 GPU hours = €1.12M per container (over 2 years).
   • CPU Cores (post-warranty): 50K in revenue (over 2 years).

Total revenue per container over 5 years: €4.85M
Total revenue for 20 containers over 5 years: €97M

Additional Revenue Streams:

• Mining Revenue:
  Each container is equipped for 30kW mining, generating an additional revenue stream.
• Grid Services (Load Regulation):
  IT containers can contribute to grid stability, offering flexible load regulation services and earning revenue from grid operators.
• Long-Term Service Contracts:
  Offering maintenance and upgrade services beyond the 5-year period.
• Rental Opportunities:
  Renting out containers as mobile IT labs or show units for marketing and demonstration can provide further revenue.

Break-Even Point:

We estimate that the fab will generate a steady income within a few months of production startup. The key revenue driver will be the deployment of 20 IT containers in strategically favorable environments, generating consistent income streams from compute hours, mining, and grid services. Based on these revenue models, we anticipate reaching break-even within the first 2-3 years, after which we expect to reinvest incoming profits into scaling operations and increasing production capacity.

Long-Term Scaling Strategy:

• Expand Production:
  Once demand grows, we can expand production by:
  • Building additional fabs (3-9 months lead time).
  • Acquiring existing facilities and adapting them (4-12 months lead time).
• Global Expansion:
  Create zero and negative-carbon IT hubs around the world, demonstrating that IT infrastructure can be entirely sustainable while providing consistent returns.

Why This Revenue Opportunity is Compelling:

Our forecast provides a clear pathway to €97M+ in revenue from just 20 containers over 5 years, with opportunities for additional income from mining, grid services, and long-term service contracts. With an initial investment of €43-45M, we offer the potential for high returns in a rapidly growing market where sustainable IT solutions are in increasing demand.

Investing in NoCarbIT is not just about profitability—it’s about leading the charge in green technology. With the right market conditions and partners, we aim to exceed these forecasts, proving that IT can be 100% green and generate significant income while doing so.