1. 0 Development & Financing of PV Power Plants & Key Issues in the Off-Grid/ Hybrid Sector

2. Conergy at a glance A Financing of PV Systems & Issues in Hybrid Systems B

3. 2 Conergy has a wide experience in all downstream sales channels; diversified sales approach is key to balance risks Conergy‘s downstream business INDUSTRIAL (free-field) COMMERCIAL (roof-top) RESIDENTIAL < 50 kWp 1) Large > ~ 200 kWp 1) > ~ 500 kWp 1) Small 50 ~ 200 kWp 1) Indirect sale to wholesale EPC (Engineering / procurement / construction of PV installations) PD, Financing, EPC (Development / financing / EPC of large PV power plants) B2BPROJECTS SALES CHANNELS MARKET SEGMENTS A Source: Conergy 1 ) Indicative dimensions Direct sale to installers and sollateurs

4. 3 Conergy has a longstanding experience in Asia and Middle East Overview of markets in APAC served by Conergy Source: Conergy Middle East Countries with own CGY-entity Countries with EPC business driven by Singapore APAC & Middle East markets REMARKS Singapore |Presence in Asia Pacific and Middle East markets since 2005 |Teams with global experience and local knowledge |Regional Headquarters in Singapore serving surrounding markets – regional engineering center of excellence |Offices in Australia, India, UAE, Thailand |Strategic partners in Thailand, Indonesia, Malaysia, the Philippines and Saudi-Arabia |Market entry in Japan currently in execution – own entity expected in H1/2013 A

5. 4 A Conergy offers high-quality solar systems and an all-round carefree service package for all sales channels from a single source Conergy‘s solution portfolio Based on more than 14 years of solar experience and its in-depth expertise as a former system manufacturer.... l.... Conergy integrates high-quality components and comprehensive services to all-round carefree solar system solutions l.... Conergy’s sales force has the expertise in all components, such as modules, inverters, mounting systems, cables and electrical parts l.... Conergy has the competence to ensure its high quality standards by strict quality management along the entire value chain SYSTEM COMPETENCE HIGH YIELDDURABLESECURESIMPLE Source: Conergy

6. 5 In general, Conergy operates in a proven consortium approach with selected strategic partners Conergy – Local Partner Consortium Consortium Member General role in project Tasks Engineering ProcurementConstruction Procurement PROJECT ENGINEERING PROJECT MANAGEMENT Overall conceptual design Overall mechanical and electrical design Main components supply Commissioning support Warranties Local civil design Local mechanical design Local electrical design Local components supply Installation Commissioning O&M A Local Partner

7. Conergy at a glance A Financing of PV Systems & Issues in Hybrid Systems B

8. 7 PV Projects have the advantage to be comparable to financial products as they are straight forward on a technological perspective Main characteristics of PV projects Reliable |Technology is simple and passive |Maintenance is light |Module life time 25 years Predictable |Sunlight is stable through the years |Energy yield are predictable and Regular |Output directly linked to quality of modules / inverters |O&M costs are stable Safe |Returns are known well in advance |Economical reality does not vary too much from simulations

9. 8 Through the eyes of Finance a project is Risk Management Overview of project development framework ENVIRONMENT “Framework” TECHNOLOGY “Know-how” PLAYERS “human factor” PROJECT FINANCE |Social Need |Political framework |Geological conditions |Yield check |Technical feasibility |Technical/site risks |Promoters |Technology suppliers |Investors |Banks Land + Rights Project development |Mitigate the risks of a project by |Proper project documentation |Scenario Analysis |EPC Guarantees

10. 9 Each partner in a project has a different goal.. EPC Margin (10 to 15%) Loan Interests (6 to 10%) Dividends (15%) Sweat equity/ Development Margin (15%) Annual returns One shot profits EACH ACTOR HAS A DIFFERENT EXIT STRATEGY IN MIND Project stakeholders and their goals Project Project Promoter Equity Investor Money lender EPC contractor

11. 10 Typical Finance Cycle of commercial PV Systems Exit by trade sale to long term equity investors with lower IRR expectations (8 to 10%) : |Utilities |Pension funds Financial close Preferred exit option Short term equity investors with Equity IRR expectations around 14% : |Development banks (label+equity) |Hedge/Innovation funds (equity) |Industrial partners (exit strategy offer) Joint Venture development (SSA, SHA) Project construction Exit by sector IPO Equity Partner search Promoters + Initial Investors Cash bring as Equity Injection into New/future project pipeline x

12. 11 |PPAS Capacity of local institutions to honor PPAs |PPAs duration and renegotiation risk |Land lease risks For an investor a bad project is a project showing him shadow areas and risks with no answers, no mitigations … Overview Project risks PROJECT INTERNAL RISKSTECHNOLOGY RISK |Clear shareholding structure of SPV with clear leadership Clear ownership rights |One Majority shareholder mastering with track record |Clear exit strategies |Potential delays in EPC |Previous References project implementation (Shareholders/EPC) in the country |Degradation factor of modules (generation) over the years |Efficiency of components (Modules Inverters) |Guarantees on performance/yields |O& M issues |Political stability and energy framework |Project geological location |Project administrative environment PARTNERSHIP RISKENVIRONMENT RISK

13. 12 |Potential delays in EPC |Previous References project implementation (Shareholders/EPC) in the country |Degradation factor of modules (generation) over the years |Efficiency of components (Modules Inverters) |Guarantees on performance/yields |O& M issues |Political stability and energy framework |Project geological location |Project administrative environment |PPAS Capacity of local institutions to honor PPAs |PPAs duration and renegotiation risk |Land lease risks For an investor a bad project is a project showing him shadow areas and risks with no answers, no mitigations … Overview Project risks PROJECT INTERNAL RISKSTECHNOLOGY RISK |Clear shareholding structure of SPV with clear leadership Clear ownership rights |One Majority shareholder mastering with track record |Clear exit strategies PARTNERSHIP RISKENVIRONMENT RISK

14. 13 Overall private sector investments have the opportunity to bring efficiency and competition to the Off-Grid/ Hybrid Sector Key points of concern for private investors Some of the concerns can be addressed by the Government while education play a key role and can be driven by the private sector A No sovereign guarantees to counter bankability issue B Often remote access raises questions on O&M C Difficulties to pool projects in order to attract equity D Smaller systems difficult to debt-finance E Wider span in quality/ reliability compared to PV PP F Lack of education on RE in Off-grid markets

15. OUR WORLD IS FULL OF ENERGY