AGENDA 1. MARTIFER GROUP 2. MARTIFER SOLAR 3. PV INDUSTRY TRENDS 4. CASE STUDY 2 1. MARTIFER GROUP Martifer Group Headquarters | Oliveira de Frades, Portugal 3 MARTIFER GROUP | GENERAL OVERVIEW • Core activities: Construction | Solar • Around 3,000 employees • Listed on Euronext Lisbon (IPO June 2007) • Revenues close to 500 million euros in 2012 • In Poland since 2005 METALLIC CONSTRUCTION SOLAR 4 1. MARTIFER SOLAR 5 MARTIFER SOLAR | HISTORY 6 MARTIFER SOLAR | CORE BUSINESS Martifer Solar is a leading global player in Development, EPC and O&M Services for the photovoltaic market With a proven track record supported on: • Cutting-edge engineering; • Advanced technical qualifications • Skilled and devoted team Martifer Solar does all stages in the PV industry, with business areas such as: • Project & Business Development • EPC, based on our 360º PV turnkey model • Specialized O&M Services • Distribution, via Mprime Brand. 7 MARTIFER SOLAR | WORLDWIDE PRESENCE HEADQUARTERS EUROPE Oliveira de Frades, Portugal . Spain . Slovakia . Italy . United Kingdom . Greece . Germany . Belgium . Romania . France . Ukraine . Czech Republic NORTH AMERICA . USA . Canada SOUTH AMERICA . Mexico . Brazil . Chile . Ecuador ASIA . India . Singapore AFRICA . Cape Verde . South Africa . Mozambique MIDDLE EAST . United Arab Emirates 8 MARTIFER SOLAR | FINANCIAL DATA PROFITABILITY: 5 YEARS OF POSITIVE NET RESULTS FY 2012 RESULTS . Revenues 230.8 M€ . EBITDA 16.0 M€ . EBITDA Margin 6.9 % . Net result 3.6 M€ . 230 M€ in backlog 9 MARTIFER SOLAR | BUSINESS SEGMENTS: WHAT WE OFFER 10 MARTIFER SOLAR | EPC DEVELOPMENT EPC . “One Stop Shop” for PV Plants development . Presence in markets with different business approaches (FiT, GC and PPA) . Skilled & talented teams . Pipeline with different levels of conclusion Gujarat | India . More than 300 MW installed . Coordination of construction and asset management Ground Mounted BIPV Rooftop Off-Grid Solutions Small Generation Casteltermini | Italy 11 MARTIFER SOLAR | OPERATION & MAINTENANCE O&M SERVICE VALUE • Maximizing the production efficiency • Ensuring the optimization of the photovoltaic assets’ returns OPERATION • Operation Reporting • Production Monitoring • Incidents Management MAINTENANCE • Maintenance Reporting • Preventive and corrective maintenance • Stock management and technical advise 12 MARTIFER SOLAR | PRODUCTION & DISTRIBUTION PV EQUIPMENTS & SOLUTIONS • Concept: “Plug & Play” kits • A wide range of PV modules and components • Flexible logistics to adapt to each client’s requirements • Superior after-sales service MPrime, PV Equipment • International distributor based in Portugal and Solutions Modules Producer Kits Components Distribution Delivery 13 2. PV INDUSTRY TRENDS 14 PV INDUSTRY TRENDS Global Developments . Shift from Europe to Rest of the World . Dramatic / retroactive support cuts . Legislation changes and lack of direction . Low confidence from investors Veules les Roses | France . Long & painful correction: Further M&A activity / consolidation Bankrupcies (warranties?) . Grid parity vs incentive schemes . Service vs Product Duransol | France 15 PV INDUSTRY TRENDS Polish market Challenges . Rules clarification (legal & technical) . PV projects development (ready to build) . Incentive Scheme definition (GC, PPA, FIT?) . Market size & the Polish RES objectives . Electricity market development . Long term market stability & sustainability . Investment capacity . Investment attraction 16 PV INDUSTRY TRENDS Lessons from our experience . Legaslative clarity & stability are key . Changes shall be planned in advance . Clear and objective stratagy for RES . Risk perception for Investors . Tax & Investment incentives are important . Secure project financing at an early stage . Opex is as important as Capex ARUBA Business Centre | Slovakia . There is room for all 17 4. CASE STUDY 18 CASE STUDY Location South of Slovakia South of Poland 19 CASE STUDY Global Horizontal Irradiation map South of Slovakia South of Poland 20 CASE STUDY Plants Technical details SLOVAKIA POLAND 1. GRID CONNECTION 1. GRID CONNECTION Peak Capacity (kWp) 4.000 Peak Capacity (kWp) 3.800 2. MODULES 2. MODULES Type : 220Wp/225Wp/230Wp, poly Type: 250Wp, poly Total number of modules 17.556 Total number of modules 15.200 3. FIXED STRUCTURE 3. FIXED STRUCTURE Tilt 30º Tilt 35º Structure Steel Structure Steel Minimum Height 0,80 m Minimum Height 0,80 m Maximum Height 2,75 m Maximum Height 3,00 m 4. AC INVERTER 4. AC INVERTER Type central Type central AC Capacity , Pn (kW) 500 AC Capacity , Pn (kW) 500 Euro Efficiency 98,4% Euro Efficiency 97,4% 21 CASE STUDY TECHNICAL SPECIFICATIONS Area: 11 hectares Peak power: 4 MW Ground-based fixed structures Ready to supply up to 1,000 homes with clean energy Avoids the release of about 1,000 tons of CO2 emissions per year 22 CASE STUDY Plants Losses Diagrams SLOVAKIA POLAND 23 CASE STUDY Plants simulation results SLOVAKIA POLAND DIFFERENCE 1. IRRADIATION 1. IRRADIATION 1. IRRADIATION Global incident in coll. plane 1.308 kWh/m2 Global incident in coll. plane 1.188 kWh/m2 - 9,20 % Horizontal global irradiation 1.159 kWh/m2 Horizontal global irradiation 1.047 kWh/m2 - 9,65 % Avg. annual Ambient temp. 9,71 °C Avg. annual Ambient temp. 8,13 °C - 8,13 °C 2. SYSTEM LOSSES 2. SYSTEM LOSSES 2. SYSTEM LOSSES PV loss due to temperature: 3,4% PV loss due to temperature: 1,6% - 1,8 % Inverter Loss during operation: 1,8% Inverter Loss during operation: 1,9% + 0,1% Total System Losse: 17,1% Total System Losse: 15,9% - 1,2 % 3. PROJECT PERFORMACE 3. PROJECT PERFORMACE 3. PROJECT PERF. Project Performance Ratio 80,10% Project Performance Ratio 78,90% + 1,2 % 4. PRODUCTION 4. PRODUCTION 4. PRODUCTION Specific production 1.048 kWh/kWp/year Specific production 937 kWh/kWp/year - 10,59 % Produced energy 4.156 MWh/year Produced energy 3.561 MWh/year - 14,32 % Data sources: 1. PVGIS (European Commission, DG-Join Institute for Environmental and Sustainability, Renewable Energies Unit TP 450) for PV Plant location. 2. NASA Surface meteorology for PV Plant Location; 24 CASE STUDY SK Plant Simulation vs. Reality SLOVAKIA – Simulation (2010) SLOVAKIA – Reality (2012) Variation 1. IRRADIATION 1. IRRADIATION 1. IRRADIATION Global incident in coll. plane 1.308 kWh/m2 Global incident in coll. plane 1.498 kWh/m2 + 15 % 2. PROJECT PERFORMACE 2. PROJECT PERFORMACE 2. PROJECT PERF. Performance Ratio 80,10% Performance Ratio above 85% Above 5 pp 3. PRODUCTION 3. PRODUCTION 3. PRODUCTION Specific production 1.048 kWh/kWp/year Specific production 1.338 kWh/kWp/year + 28 % Produced energy 4.156 MWh/year Produced energy 5.329 MWh/year + 28 % Data sources: 1. PVGIS (European Commission, DG-Join Institute for Environmental and Sustainability, Renewable Energies Unit TP 450) for PV Plant location. 2. NASA Surface meteorology for PV Plant Location; 25 CASE STUDY SK Plant Simulation vs. Reality Data sources: 1. PVGIS (European Commission, DG-Join Institute for Environmental and Sustainability, Renewable Energies Unit TP 450) for PV Plant location. 2. NASA Surface meteorology for PV Plant Location; 26 CASE STUDY EPC Martifer Standard Provided Warranties 1. EPC Warranty Standard Warranty for the engineering and construction of the PV Plant for a period of 2 years after Commissioning* 2. Equipment Warranties 10 Years - Factory Warranty Modules 10 Years - Decrease of the peak power of panels shall be equal to or less than 10% of the nominal 25 Years - Decrease of the peak power of panels shall be equal to or less than 20% of the nominal Inverters 5 Years - Factory Warranty 5 Years - Factory Warranty Structures 20 Years - On Galvanization 3. Performance Ratio (‘PR’) Warranty Standard warranty on Plant Performance, it will be a minimum of 79% for year 0 and guaranteed, according to simulations, for the first 2 Years of operation* 4. Plant Availability Warranty: Standard warranty on availability of 97%* *Subject to the signature of an O&M contract with for the warranty period 27 DISCLAIMER The information contained in this document is strictly confidential and may not be disclosed or reproduced in any form, in whole or in part. This document does not replace the consultation of other publications already disclosed and/or to be disclosed by Martifer Solar. Forward looking statements reflect only the enunciation of intentions, expectations, projections and/or beliefs of the management team, based on past experience, present and future trends. Therefore, it should not represent anyway a guarantee of future performance taking into account inherent risk and uncertainty factors. 28 www.martifersolar.com MARTIFER SOLAR SA MARTIFER SOLAR SA Zona Industrial Polish Office P.O. Box 17 Ul. Kurniki 4 3684-001 Oliveira de Frades 31-156 Kraków Portugal Polska 29 .