HSL_HeSaWater_November 2014_FINAL

HeSaWater Converting energy to profit

November 2014

HeSaLight | Confidential | Unauthorized distribution or copying of this information is prohibited 2

| A energy optimisation provider with novel saving solutions

| Founded in 2008

| LED lighting manufacture with energy optimization solutions in other areas

| Danish design and quality assurance.

| 100% Danish company owned by management

| Headquartered in Roskilde, close to Copenhagen

| Production in Denmark, Taiwan, South Korea, China.

State-backed financing through partnership with the Danish Export Credit Agency

Mission: To develop, produce and sell high-quality energy efficiency solutions for the professional market with the lowest total cost of ownership.


Worldwide operations: 28 countries — 75 local agents

Headquarter

Local company

Production

HeSaLight | Confidential | Unauthorized distribution or copying of this information is prohibited

Denmark’s Export Credit Agency

“HeSaLight, a Danish lighting company, has developed LED lighting. We save energy, you get a cleaner environment - more export revenue and jobs. Grants for green projects work. We have put a half billion crowns for the development of green technology, for example in the form of green loans and grants for green projects”. Prime Minister Helle Thorning-Schmidt, May 2013

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Technical University of Denmark World’s Largest Pump Manufacturer


HeSaLight serves a wide range of customers with energy optimization needs

Retailers

... and many others

Public Clients

Industry

Real Estate Owners

Food Production

The more pump energy weighs in on the facility costs, the greater the earnings

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Outdated

2:3 of all pumps waste 60% energy due to

outdated technology and inefficient operation

Greedy

Water pumps use 10% of the World’s total electricity

consumption

Wasteful

Most pumps waste energy 95% of the time because they always

run at max speed

85% of the lifetime costs of water pump is energy consumption!

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| Typical energy reduction: 50-80%

| Reduced costs | Reduced energy price risk | Short payback time (3-5 yrs)

| Typical reduction in CO2 emissions: 50-80%

| Energy regulation compliance | Improved green reporting | Pump lifecycle analysis and

documentation | Green corporate image

| Reliable operation | Low failure rates | Reduced downtime | Reduced repair costs | Overview of energy

consumption | Central control

Financial Environmental Operational

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Less wear, better controlled flow and coordination – bigger the savings

| High-tech electrical engines | Reduced flow vortex | Reduces flow resistance | Reduces friction in bearings.

Æ Better transformation of electric energy

Better Engines

| Frequency drives | Only when needed | Adjustable speed

Æ Pump activity adjusted to actual operational need.

Adjustable Flow

| Central control | Improved service performance | 20% reduced lifetime costs | In concert, not out of sync

Æ Optimized hydraulic control and smoother flow

Control Systems

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| Lack of knowledge of modern pumps and solutions

| Potential savings seems difficult to calculate

| No overview of green impact (CO2 reduction)

| Capital-intensive investment

| Complex installations with multitude of pumps

| No project management resources

| Fear of maintenance issues

Upgrading becomes too big of a ‘leap’

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Making water pump upgrading and management affordable

• Simple ‘earn-and-pay’ rental solution • Guaranteed positive cash flow from day 1 • No upfront installation costs • Full energy analysis and pump audit • World-class products and solutions • Professional guidance • Full maintenance included • Continuous monitoring and follow-up

HeSaWater

Leading Danish provider of energy optimization services:

• Energy analysis and audit

• Project design and implementation

• Energy management

• Capex neutral financing

Better engines

The World’s largest pump manufacturer:

• 12 million pump units p.a.

• 18,000 employees worldwide

• Circular pumps, submersible pumps, and centrifugal pumps

• Electric pump motors and control electronics

Immediate energy savings + high-quality product

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With HeSaWater you start earning from day 1 Cost

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15

100%

40% Post-Update Pump Cost

Rental cost

Pre-Update Pump Cost

Phase 1 Earning:

10% of saving

Phase 2 Earning:

20% of saving

Phase 3 Earning:

30% of saving

Free cash flow Free cash flow

Free cash flow

Technical lifetime of the products

Typical Saving with

our Pumps

After termination: Buy-back at 5% savings value or continue leasing new products

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We guarantee that performance never varies more than max 10% from original estimate.

Performance band

Actual consumption

Max kWH consumption

Min. number of operational hours

Always sufficient water and never use too much energy consumption

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HeSaWater presents a unique rental model in three easy steps:

Typical implementation time: 2 months

| Onsite Inspection | Energy Analysis | Needs / Challenges? | Installation Plan | Can be done with

no down time

| Consumption Profile based on analysis and pump solution

| Cost Calculation | Rental Terms | Performance Guarantee | Time Table for Implementation

Step 3: Save

| Full Installation | 50-85% saved energy consumption | Monthly rent with

guaranteed savings effect | Service Included | Continued Savings Monitoring

Æ Energy report Æ Rental contract Æ Realized savings profit

Step 2: Rent Step 1: Analyze

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| Technical lifetime of the products

| Rent level based on initial energy analysis

| Implementation + service

| Time table

| Monthly instalments accrued and compared to actual energy consumption (+/-)

| Performance guarantee

| Monitoring and savings evaluation

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| Continuous data tracking on consumption:

— Operational hours, kWh consumption

| Monitoring of savings vs. budget – are we on track?

| Maintenance reporting

| Operations reports

Always know how much you use — and save

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1. Savings Calculation

2. Payment Plan

3. Technical Evaluation

4. Contract

5. Installation

6. Handover

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Lykkegaardsvej 9 4000 Roskilde

Denmark Phone no.: +45 3537 8888

[email protected] www.hesalight.com

Documents

HSL_HeSaWater_November 2014_FINAL