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Sustainable, affordable and code compliant 3D printed houses

Periodic Reporting for period 1 - OVO Habitat (Sustainable, affordable and code compliant 3D printed houses)

Reporting period: 2018-12-01 to 2019-03-31

3D printing has already revolutionized several industries and achieved unprecedented speed of delivery, quality and cost reduction. It has experienced a remarkable technological development in the last few years, with applications in various sectors including automotive, healthcare and aerospace. However, it has not yet been successfully transferred to the construction business.
This is where A3D is positioned. A3D builds homes at fraction of the traditional construction cost, using sustainable materials and done on-site, reducing transportation costs, pollution, and waste.

There is, more than ever, a need for affordable housing. In high income countries the demand is associated to the disparity between income and costs of living. Indeed, in Europe the number of years of gross salary required to acquire a standardized 70 square meter dwelling, finding a markedly upward trend in recent years. Citizens would need to on average save their complete gross salary for 6-11 years to buy a new dwelling. In lower income countries, the demand is associated to rapid economic growth driving urbanization and investments directed providing adequate living conditions to those living in slums. More than 880 million urban residents were estimated to live in slums in 2014, an increase of 11% since 2000. Investments are being deployed from international organizations such as the world bank and at country and local level.

The construction business has remained a slow mover when it comes to building methods and, the application of industrial practices yield a large potential to reduce completion schedules and costs and create the solution to affordability cost and lack of proper residence.

The objective of A3D printer is to develop novel lightweight concrete formulations and 3D printing systems able to build on-site code compliant, sustainable and affordable houses. Our groundbreaking solution has been recognized by urban developers who are seeking to provide affordable and sustainable homes. Now, successful commercialization requires demonstrated field results. Through the feasibility study phase, we have established the roadmap to build our technical solution and a full scale OVO Habitat® , ready to be commercialized.
As a result of the actions conducted in the feasibility study, we have evolved our business idea. It has been possible for us to recognize an important business opportunity to supply constructive kits (bathrooms, kitchens… described in this documents). We have been able to confirm the interest of our potential clients and accordingly develop a product development roadmap to capitalize on this opportunity. This has a huge impact in our development. These step-wise growth paves the A3D printer development (both in terms of the hardware and the software development), it accelerates our lightweight concrete material development blended with sustainable fibers, as it will enable to create larger structures, where we can test and analyze the behavior of the material some 12 months earlier than our initial plan. It creates the possibility to start generating revenue as we continue our development, allowing us to partly finance the R&D of the company. More importantly, it is an enabler for A3D printers to make an initial splash in this very early stage market, positioning us amongst the pioneers of the field, while clearly stating to our potential customers, partners, relevant supporting and dissemination stakeholders and even the general public our differentiated value.
We have developed a detailed technical design in terms of the Hardware and Software that constitute the A3D printers. This has impacted in our current vision in two very relevant ways. We have now full visibility on the investment required for the development, having detailed thoroughly all costs. On account of the evaluation of the existing software tools that we could use and the proprietary development we have to conduct, we have decided to change our strategy on that matter. We have concluded that software is a key component of our solution, a key differentiator towards the competence and a key asset moving forward, both product wise and business wise. That being the case we have decided to create our software department and keep the full software development and control in-house.
The financial analysis, growth predictions and funding requirements for the next stages of development and growth reflect favorably on A3D growth. The most realistic financial and growth forecast predicts an annual turnover of circa € 30 million by 20, with a profit margin of 66.5%.
Our value proposition is based on the combination of optimal design, achieved through novel materials and efficient process, in order to provide habitable, cost efficient and sustainable houses. A3D printers provide progress in the state of the art in several dimeesions: 1) Large scale concrete 3D priting technology, with our unique hardware and software developments to realize a flawless and cost-effective construction. 2) Materials, with our novel and proprietary lightweight concrete formulations, including as reinforcement materials nanocellulose and other sustainable fibers. 3) Design of the homes, the OVO Habitat is an optimized design both to be constructed through our process but also through its lifetime with a reduction of energy needs.

The A3D process creates a disruption in the practices of the construction sector, generating new market opportunities on account of lower costs, but also through new design possibilities enabled, including considerations to enhance sustainability. These customers will benefit from the following Unique Selling Points:
• Building costs reduction (30 to 50%)
• Reduction of delivery time (70 to 80%)
• Financial cost reduction associated to the reduction in delivery time (25%).
• Reduction in the generation of wastes and their need to be disposed of (25%)
• Modular, versatile design for flexible house sizes and shapes.
• Built-in optimized energy efficiency