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Annual General
Meeting
December 2, 2010
2
Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing.
Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results. Accordingly, investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertakes no obligation to update any forward-looking statement or statements to reflect information, events, results, circumstances or otherwise after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
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About China Wind Power International Corp.
•3
China Wind is uniquely positioned to capitalize on
the growing demand for wind energy in China
China Wind is uniquely China Wind is uniquely positioned to capitalize on positioned to capitalize on
the growing demand for wind the growing demand for wind energy in Chinaenergy in China
4
DemandChina
ExclusivityDu Mon County
GuaranteedPower Purchase Agreement
Profitable12-14% IRR, and higher for future projects •4
A tremendous opportunity for following four main reasons:
55Source: IEA
• Rapid industrialization
• Looming energy shortage
• Facing one of the world’s biggest environmental crisis
•• Rapid industrializationRapid industrialization
•• Looming energy shortageLooming energy shortage
•• Facing one of the worldFacing one of the world’’s biggest s biggest environmental crisisenvironmental crisis
China OverviewChina Overview
6st tomorrow1
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China’s commitment to wind power
4th 2009
2008200812.0 GW12.0 GW
20102010Target 30 GWTarget 30 GW
20202020100 GW100 GW
2009200925.8 GW25.8 GW
2nd todayChina:
77
We make it, they take it
• National Renewable Energy Law, effective January 2006
• Grid is obligated to purchase all output!
Guaranteed demand
• Heilongjiang Provincial Power Grid must buy our electricity
for China Wind
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Heilonjoang Province
Population: ~38 million
Annual electricity use by 2010*:* forecast
74 million MWh
Our current focus: Heilongjiang Province
Exclusive rights to Wind Power GenerationDu Mon County, Heilongjiang
BeijingBeijing
ShanghaiShanghai
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Favourable location
On-grid Tariff: 0.61 Yuan/ Kwh
Wind Speed 70m: 6.9-7.5 m/s
Beijing
Shanghai
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Well Located
• Flat, solid ground
• Easy access with roads and highways
Power Grid <2km
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Beijing
Shanghai
Included in power
grid master plan
546 MW over 5 development phases:49MW in commercial operation (P1)
49.5MW in construction (P2)448.5MW in development (P3~4)
Our portfolio
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Longer-term potential forbuilding out 1,150 MW
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Phase 2: 49.5 MW Phases 3-5: 448.5 MWPhase 1: 49 MW
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74% 74% debtdebt
26% 26% equityequity
China Wind — Phase 1
Financing CompletedTurbinesStatus
CommencedCommencedcommercialcommercialProductionProductionDec. 2009Dec. 2009
34 turbines34 turbinesproducing producing
powerpower
67 GWh generated at June 30, 2010
93.2 GWh generated at October 30 2010
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China Wind — Phase 2
Financing CompletedTurbinesStatus
Construction Construction halfhalf--way way
completedcompleted
15 15 installed, installed,
20 on 20 on orderorder
65.85%65.85%bank*bank*
35.15%35.15%equityequity
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Phase 2: 49.5 MW Phases 3-5: 448.5 MWPhase 1: 49 MW
330 million RMB (US$49) bank loan has been approved at a variable Interest rate.
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HFDY1500/77 HFDY1500/77 Directly DrivenDirectly Driven
Turbine Overview: Phase 1 and 2
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66 1010 1919(Installed) ( 9 installed)
DW1.0/56 DW1.0/56 TwoTwo--BladedBladed
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DTDT--1500 1500 Doubly FedDoubly Fed
3030
56% of all globally installed wind power equipment is manufactured in China (2007)
Ph
ase 1P
hase 1
Ph
ase 2P
hase 2
1414
Our progress in
FY2010
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Key Milestones
• Completed take over of Berkshire Griffin
• Began trading on TSX-Venture
• Commenced commercial production
• Raised $5 million in non-brokered private placement
• DuMon County sites identified as key areas in Province’s Master Plan
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$1,719
2010
16
Sales(thousands)
Commercial production of energy begun in Q2
Total assets at year-end was $114 million
2010
$3,829
2009
$407
Revenue(thousands)
$02009
Annual Results
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4.7
2010
17
Adjusted EBITDA(thousands)
EBITDA excludes stock-compensation charges
Power produced at 65% capacity
2010
$482
2009
($798)
Power Produced(GWh)
2009
Annual Results
0
1818
Recent Progress
1919
Sales(thousands)
Commercial production well underway
Operating at 65% capacity
FY2011
$1,217
FY2010
$705
Revenue(thousands)
$0
Q2 Results
FY2010 FY2011
$1,217
20
1.52
2010
20
Adjusted EBITDA(thousands)
Record revenue, EBITDA
Net loss lowest ever
FY2011
$1,291
FY2010
($393)
Power Produced(GWh)
2009
Q2 Results
0
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Q3 Milestones to Date
• Generated 1.1 GWh of electricity in October
• Continued construction of Phase 2
• Raised $4.3 million in non-brokered private placement
• Final stages of $50 million bank loan agreement
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Looking Ahead
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Turbines installation commenced.
All foundations completed
Construction completed
Phase 2: project timeline
Debt financingapproved
Construction commenced
Equityfinancing
Q2/11Q4/09 Q4/10Q1/09 Q3/09
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China Wind — Phases 3 to 5
Financing (targeted)TurbinesStatus
299 turbines299 turbinesplannedplanned 70%70%
debtdebt
30%30%equityequity
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Phase 3Phase 3(200MW) (200MW)
close to getclose to getfinalfinal
approvalapproval
Phase 4 & 5 Phase 4 & 5 feasibility feasibility studies studies
underwayunderway
Phase 2: 49.5 MW Phases 3-5: 448.5 MW Phase 1: 49 MW
Phase 3 projects (198MW) will be financed using EPC Contract.
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Phases 3 to 5: project timelines
Phase 5~150MW
•Q4/11Construction
begins
•Q2/12Construction
begins
Q3/13Construction completed
Q4/12Construction completed
Q4/11Construction completed
•25
Phase 3(Sino-Denmark)
198 MW
•Q3/10Construction
begins
Phase 4~100MW
Q1/11Construction commences
Q1/12Construction commences
Q3/12Construction commences
Construction phase ~ 12 months
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Total Revenue for 49MWTotal ~49M Project Cost (including installation)
Phase 1 & 2 * Phase 3 **
Turbines/towers: US $53.6M US $46.8M
Construction: US $13.1M US $10.5M
Interest: US $4.1M US $2.9M
Other: US $2.2M US $4.2M
Total: US $73.0M US $64.4M(~12% lower)
Business model: costs and revenues*
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Electricity Production• Production: 110,743 MWh/yr
• Power Price: 0.61 Yuan/Kwh
(=US$92/MWh)
• Revenue: US$8.82 M /yr * • 20 Years PPA
* Based on 20 years average for the Phase I (49MW) or II (49.5MW).
** Based on 20 years average for one 49.5 MW wind farm of the Phase 3 (total 4 wind farms, 198MW).
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Installed capacity 49MW
Capacity factor 26.31%
Revenue: wind power * US $8.8M
Total revenue * US $8.8M
EBITDA * US $6.7M
Total profit after tax * US $1.6M
Annual cash flow to equity * US $2.3M
Targeted project economics for Phase I & II * (20 year average for one 49 MW wind farm)
Capital cost/MWLess than US $1.5 million
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Levered equity IRR10-12%
* Based on 20 years average 49 MW project for Phase I and II.
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DemandChina
ExclusivityDu Mon County
GuaranteedPower Purchase Agreement
Profitable12-14% IRR
29
Wendell Zhang
Chief Financial Officer
416-916-4205
• www.ChinaWindPowerInternational.com
twitter.com/ChinaWindPower
Wendell Zhang
Chief Financial Officer
416-916-4205
• www.ChinaWindPowerInternational.com
twitter.com/ChinaWindPower
