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Investor Presentation September 2010
TSX-V: CNW
Investor Presentation September 2010
TSX-V: CNW
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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.
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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
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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
China Overview
6st tomorrow1
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China’s commitment to wind power
4th 2009
2008200812.0 GW12.0 GW
2010201040 GW40 GW
20202020100 GW100 GW
2009200925.8 GW25.8 GW
2nd todayChina:
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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 millionAnnual electricity use by 2010*:* forecast
74 million MWh
Our current focus: Heilongjiang Province
Exclusive rights to Wind Power Generation
Du Mon County, Heilongjiang
BeijingBeijing
ShanghaiShanghai
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Favourable location
Power Grid <2km
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
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Beijing
ShanghaiIncluded in power grid master plan
546 MW over 5 development phases:
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 by end of June 2010.
360M RMB (US$53M) of debt.Interest rate: 5.94%
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China Wind — Phase 2
Financing CompletedTurbinesStatus
Construction Construction half way half 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 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) (10 installed)
DW1.0/56 DW1.0/56 TwoTwo--BladedBladed
44DTDT--1500 1500
Doubly FedDoubly Fed
3030
56% of all globally installed wind power equipment is manufactured in China (2007)
Phase 1Phase 1
Phase 2Phase 2
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Turbines installation
commenced.
All foundations completed
Construction completed
Phase 2: project timeline
Debt financingapproved
Construction commenced
Equityfinancing
Q4/10Q4/09 Q3/10Q1/09 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 3 Phase 3 close to getclose to get
finalfinalapprovalapproval
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
Q3/13Construction completed
Q4/12Construction completed
Q4/11Construction completed
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Phase 3（Sino-Denmark)
198 MW
Phase 4~100MW
Q1/11Construction commences
Q1/12Construction commences
Q3/12Construction commences
Construction phase ~ 12 months
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Financial Results for Phase I
$0.5
$1.2 $1.2
Q3/FY10 Q4/FY10 Q1/FY11
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• Phase I Commercial production begun in Q4 FY2010.
• Adjusted EBITDA excludes stock-based compensation
$0.5
$0.8
$0.6
Q3/FY10 Q4/FY10 Q1/FY11
Revenue Adjusted EBITDA(millions) (millions)
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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: US$89/MWh• Revenue: US$8.5M /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 $8.5M
Revenue: carbon credits US $1.8M
Total revenue US $10.4M
EBITDA US $8.3M
Total profit after tax US $3.2M
Annual cash flow to equity US $3.9M
Targeted project economics for Phase I & II * (20 year average)
Capital cost/MWUS $1.5 million
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Levered equity IRR12-14%
* Based on average 49 MW project for Phase I and II.
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Recent Milestones
• Completed construction of Phase 1• Commenced commercial production• Generated more than 67 GWh to date• Total sales of $1.2 million for Q1 FY2011• EBITDA* of $598,000 for Q1 FY2011• Approval of Grid connection for Phase 3.
*Excludes stock compensation charges
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Management and Board of Directors
Jun Liu Chief Executive Officer and Director• 20 years of experience including executive positions with subsidiary companies of
Daqing Petroleum Administration Bureau, China National Petroleum Corp.
Wendell Zhang Chief Financial Officer• 9 years public accounting experience with Ernst & Young China and Canada.
Walter Huang Senior Vice President and Director• Co-founder and partner of a U.S. investment firm and many years of investment
and financial industry experience, especially in China.
Zhijie Song Chief Engineer• 30 years experience in the power industry and has held a variety of technical
executive positions.
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Management and Board of Directors
Honliang XuIndependent Director• Chairman of the Board of China Fulin Wind Power Development Corp.
Linda DundasIndependent director• Risk Management and Financial Sector Regulation Expert with Royal
Bank of Canada。
Joshua GersteinIndependent Director• Merchant banker with Cervello Capital
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DemandChina
ExclusivityDu Mon County
GuaranteedPower Purchase Agreement
Profitable12-14% IRR
Walter HuangSenior Vice President
(+86) 13918002882 (China)
(+1) 847-323-7226 (US)
• www.ChinaWindPowerInternational.comtwitter.com/ChinaWindPower
Walter HuangSenior Vice President
(+86) 13918002882 (China)
(+1) 847-323-7226 (US)
• www.ChinaWindPowerInternational.comtwitter.com/ChinaWindPower
