Psc geif summary investment offer5

Investment Offer Presentation
Solar power generation in Switzerland

Power Synthesis Capital AG
Summer 2012

Conﬁdential Tuesday, August 28, 2012! ! 1

Global Energy Investment Fund (www.geif.eu) is the unlimited structured fund, registered
October 2011 in Principality Liechtnstein.

GEIF is an open share investment fund for qualified investors totaling EURO 200 million.
Minimum amount of investment is set at 250 thousand CHF.
The target index for GEIF is a 15% annual yield for medium- and long-term investments
with allowance for an optimum risk-return ratio. GEIF funds are invested mainly in shares of
selected projects in the amount of 25-100% of the registered capital.
GEIF invests in two fields: “power generation based on renewable energy sources” and
“green / energy efficient / energy saving technologies”.
The Fund Administrator is Valartis Fund Management (Liechtenstein) AG.
GEIF auditor–ReviTrust AG Liechtenstein.
Custodian Bank–Valartis Bank Liechtenstein AG.

The unlimited structure was chosen to set both the fund value and term in accordance with
market requests. Initial investment lock up period - 4 years.

The Asset Manager is Power Synthesis Capital AG - PSC -
(Switzerland) - established in April 2011. PSC has got the duly
registered representation office in Russia (Moscow), accredited with
Swiss Business Hub of Swiss embassy and introduces wealth
management services (www.pscapital.ch).

Ecolution Engineering AG (ecolution-engineering.ch) EEAG - is
the engineering company, conducting design of PV projects based on
combination of “clean” technologies and the very up-to-date know-
hows, with further follow-through, performace controls and “turn-key”
construction survelliance outsourcing EPC companies. EEAG selects such EPC contractors in
accordance with tender procedure. Further EEAG conduct PV project technical management ,
performance monitoring and in-house maintenance.

Both PSC and EEAG represent the joined group to asset manage and PV system supply for
GEIF. Together we provide for complete expertise and arrangement to develop, launch, and
manage PV systems covering administration, legal, financial and management issues.


Target Market:

December 2011 the Swiss government adopted the program to get rid of existing nuclear power
stations at the territory of Switzerland by 2030 and substitute thus emerging power gap by
alternative power generation in particular PV installations. The Feed-in-tariff (FIT) schedule
for the term of 25 years was adopted to stimulate the solar power generation. Current range
0,26-0,45 CHF. Current FIT is 0,39 CHF/kWh applicable for roof-top installations of up to
100KW capacity, in case over 100kW - 0,37 CHF/kWh. However starting October 1, 2012
DETEC (Federal Department of Environment, Transport, Energy and Communication)
reduced FIT by 15% in average to 0,36 CHF representing at target PV system type 0,33 CHF
and 0,31 CHF respectively. The FIT program is funded by KEV fund managed by Swiss
goverment and is currently exceeds 1 bln.CHF per annum. The FIT is degraded by 8% p.a. and
to avoid speculations at the market (negative experience of Czech Republic) the lock up period
of 24 month is introduced for the FIT receipt by a PV generation facility. For the lock up
period of 24 months regular local municipality grid power purchase agreement are actng with
average tariff of 0,20 CHF will apply.

Currently the PV share in Swiss energy sector is 0,1%. In accordance with the state plan the
share of PV in the energy sector should be not less than 25%.
PV potential estimation utility 30.07.

PV roof-top installations - are the major subsidized objects due to the fact that the land is
Photovoltaic Geographical Information System - Interactive Maps
expensive and mostly allocated for agriculture needs. The above stated optimal FIT is
dedicated for roof-tops. The total volume of roofs applicable for PVContact Important legal
EUROPA > EC > JRC > IE > RE > SOLAREC > PVGIS > Interactive maps > europe

cursor position:
installations in
Switzerland is 200 sq.km. To substitute the nuclear power production capacity of 4,5GW only Daily radia
e.g., "Ispra, Italy" or "45.256N, 16.9589E" 47.902, 7.888
PV Estimation Monthly radiation
Search selected position:
90 sq.km. of roofs will be enough to install PV installations. The estimated capital cost is ca. 10
Performance of Grid-connected PV
bln.CHF and annual turnover (taking average FIT annually degraded and 24 month lock up
Radiation database: [What is this?]
period) should exceed 1,5 bln.CHF.
PV technology: Crystalline silicon

Although solarpower 1
Installed peak PV radiation level kWp
in Switzerland is not
Estimated system losses [0;100] 14
comparable with regions close
%
tFixed mounting q u a t o r,
o the e options: the
performance and Free-standing of
Mounting position:
efficiency
PV systems are substantially (Azimuth
Slope [0;90]
dependable on temperature Optimize slope
from -180
East=-90,
35 °
and altitude. These two South=0)

Also optimize
parameters in Switzerland have
Azimuth 0 °
azimuth
good value as most PV
Tracking options:
installations are above 400
Vertical Slope [0;90]
meters over sea level and
0 °
annual average temperature Optimize
axis
is
beneficial for Slopeperformance.
Inclined the [0;90]
Additionally, Swiss °
axis 0 government Optimize
2-axis
is considering de-centralized
tracking
PVGIS © European Communities 2001-2007 power stations as a future asset
- Horizon file
of the Swiss Power grid.
Solar radiation Temperature Other maps Datei auswählen Keine Datei ausgewählt

Output options
Show Show
graphs horizon
Web page Text file
PDF

11. Graphiken Photovoltaik

11. Graphiken Photovoltaik
11.1 Verkäufe Photovoltaik-Module (kWp)

The latest Market research from the government shows that the adopted strategy is bringing
11.1 Verkäufe Photovoltaik-Module (kWp)
energetic pace to PV development:

11.2 Stromproduktion der PV-Anlagen (GWh/a)
(Bundesamt für Energie, Markterhebung 2011, releasd: June 2012)

11.2 Stromproduktion der PV-Anlagen (GWh/a)

(Bundesamt für Energie, Markterhebung 2011, releasd: June 2012)

Markterhebung Sonnenenergie 2011 23

Markterhebung Sonnenenergie 2011 23


Table Swissolar with Market information

100MWp New installations in Switzerland in 2011 (estimate)

210MWp Total installed in Switzerland until 2011 (estimate)

530MWp Potential power on the waiting list for the feed in tariﬀ as of
March 2012

approx 12‘000MWp Required power to achieve the goal of 20% PV until 2025

>10‘000 total installed PV installations until 2011

12500 Projects on waiting list. (including small installation <10kW))

approx 160GWh Energy supplied by PV installations on 2011 (estimate 2012:
260GWh)

approx 490GWh Potential energy list by the projects on the waiting list

approx 12‘000GWh Energy supplied in 2025 by the 20% program

0,27% Share of PV in the energy mix. (Gross consumption 2011)

20 % Deﬁned target for PV in the energy mix in 2025


Team

A n d re a s Schöni – Igor Smurov - Vice-President
President of PSC of PSC
Swiss citizen, born December Russian citizen, born June 19,
7, 1968 1970
Graduated from the University Graduated from the Moscow
of Applied Science in Bern. State University of International
Relations (MGIMO).

Simulteneously is the General Manager for EEAG. Started his carrier in PriceWaterhouse afterwards Mr.
Was employed at Swiss Solar Systems AG as Sales Smurov was with M&A division of Commerzbank AG.
Director PV Equipment and was responsible for Later as CFO and CIO of a Russian major financial
worldwide market management with respect to turn- group he fundraised for and managed several large
key photovoltaic module production facilities and scale investment and M&A projects in the
high-end components thereof. telecommunication, financial and semiconductor
Prior to this position Mr. Schöni was working for the industries (among them the building from “the
company Saint-Gobain for the Gla ss market scratch” the first Russian national CDMA operator
development Asia, as well as for the company “Sky Link”).
Schneider Electric to implement new energy In the course of his career Mr. Smurov has successfully
distribution systems in Switzerland. arranged, launched and conducted a number of
Member of the board of directors of IPVEA investment projects within the telecommunication,
(International PV Equipment Association). banking / leasing and semiconductor industry, having
raised about USD 2 billion

Andrey Golitsyn – Head of Ar tashes Ambar yan –
PSC Representation office Director, representative
in Moscow of PSC in Prague
Russian citizen, born January Russian citizen, born June 3,
30, 1964 1979
Graduate of Moscow State Graduate of Moscow State
University. University
From 1986 was managing several successful projects Started his carrier in banking and MICEX, later -
with GAZPROM, Ministry of Geology and some big Head of Treasury the first national CDMA operator
international companies. “Sky Link” and Head Treasury in a number bank and
From 1994 to 1995 was working on the grants of companies. Afterwards has arranged and launched a
French Government in University of Bourgogne and in number of investment projects in PV construction at
London University in UK, as well as in French the territory of Czech Republic.
Institute of Oil.
Starting from 1997 as top-manager was incorporated in
projects of big international financial and insurance
companies in Russia. At the beginning it was Fortis
Bank Moscow Representative Office, then Head of
Asset management department of Investment Bank
Trust, after was working in Life Insurance fo more
than 10 years at «AIG Life», Renaissance Life and
Fortis Life Insurance.
Before PSC was Managing Director of Moscow
branch of International Group IKB Leasing.

PSC Advisory Board members’ CVs are available at http://www.pscapital.ch/en/about-us-en/
advisors.


Team Experience:

PSC and EEAG currently retains the group of specialists (see the Chart next page) to contract
for design and engineering of PV roof-top installations in Switzerland (see the reference list
presentation - as of July, 2012 - attached). Since January 2012 3 PV roof-top installation projects
were completed and sold. 4 projects are at completion and over 10 projects are at development
stage. EEAG controls quality and construction specifications, provides design procurement for
EPCs who a contract is rewarded to. Current EEAG pipeline exceeds 6 MW and will be
multiplied in conjunction with funds available with GEIF.

To expand the construction PSC&EEAG are ready to retain EPC contractors (including
currently we are partnering with but not limited to Buhler électricté SA,Solar Center
Muntwyler AG, M+W group) thus reducing capital costs and obtaining the most lucrative
objects: warehouses, logistic terminals and airport hangars.

Our projects are based on most reliable and efficient equipment and materials of EU origin -
Solar panels (ASOLAR, LUXOR), inverters and PVBOX (Schneider Electric), Mounting
Systems (K2-Systems), batteries and etc. Our working procedure for projects in Switzerland
forsees to work as close as possible with local available staff and enterpreneurs. This is to make
sure we receive first hand information on new projects introduced at the market and best
commercial conditions.

Our technical team has extensive trackrecord exceeding the standard of 360 of training.

PV systems we launched in operation in Switzerland and Italy demonstrate stable high
efficiency and provide for high investment yields. PV systems we designed exceed standard
statistical efficiency parameters min 5%. All our projects are running through a pre-design
phase where we precisly calculate shadow losses and optimized installation engineering in
order to get best kWh/m2 ratio.

During 2010-11 PSC group members were involved in construction of solar parks in Czech
Republic, Slovakia and Italy thus receiving valuable experience in equipment supplies,
construction and legal issues for the current business.

Well positioned at the market the PSC and EEAG evaluate their potential to achieve the
market share in Swiss PV downstream of up to 5-7% throughout the period of 5-6 years.


Company Organisation

Andreas Schöni
GM

S. Schudel C. Yuille *
Assistant Finance & HR

A. Schöni J. Franke T. Caldara H. Lehmann & M. Faricelli *
Project Manager projects > BED Project Manager projects < Architect and Site Managers
100kW 100kW
Quality Management statics
Sales Sales
Technology Building concepts
Process Management

Partner companies

Bühler Electricité SA Balz Engineering AG
Industrial PV Partner Industrial PV Partner

Electrical installation Roof mounting

GM Jean-Marc Rogivue GM Daniel Balz

Staff 70 Staff 55

Wednesday, August 1, 12


Business Model

• A SPV company (Swiss resident) is to be established for a number of selected PV projects
to operate, each SPV is 100% owned by GEIF (asset managed by PSC).
• SPV would rent roofs to install and operate PV systems thus being a power generating
company.
• SPV initiates projects subject to be pre-selected and designed by EEAG and will
purchase each "turnkey" installation from an EPC (see the attached picture) which
received the EPC contract as a result of a tender arranged and conducted by EEAG in
accordance with EEAG design and mandate to control construction.
• SPV uses debt leverage of 75% (pre-arranged with UBS) to cover capital cost with regard
to PV installation turn-key construction.
• SPV will receive income submitting power to the local grid in accordance PPA for the
first 24 months followed by 25-year Swiss government plan and adopted FIT.
• SPV pays dividends to GEIF.
• PSC and EEAG jointly manage SPV (financially and technically respectively).

Ownership and Operational Structure

Ownership Structure
Investor

GEIF certificates

Asset
management
GEIF (LI) PSC (CH)

100% ownership EEAG (CH)

SPV management

SPV (CH)


Operational Structure
Investor

2. Return of
investment + 1. investment
profit

9. Asset
GEIF (LI) management fee PSC (CH)

4. Dividends
3. Equity 10. SPV
Funding management
5. Mandate to
control
construction and
monitor the
EEAG (CH) performance of PV SPV (CH) Bank (CH)
installation
8. Debt Funding

Quality controls 7. Payment for 6. PV installation
& procurement PV Installation

Buhler
SYSTM Solar Center
Enterprises M&W Group
CALDARA AG Muntwyler AG
Monthey AG

1. Investor purchases GEIF certificates.
Tuesday, July 31, 12

2. Both investment profit and returns are not taxed "at source" for the Investor with GEIF due
to Liechtenstein jurisdiction.

3. GEIF has 100% ownership interest in SPV - power generation company.

4. The basic mechanism of investment returns and profits from SPV to GEIF is dividends. The
dividends paid by the SPV are subject to Swiss WHT at the rate of 35%.

Tax optimization ways:
• In accordance with the Law acting since January 1, 2011, any profit obtained from the sale of
stock in case such stock share representing not less then 10% of the capital and provided the
duration of ownership is not less then 1 year, such profit is eligible for the participation
deduction and therefore more or less tax exempt. The participation deduction is granted to
SPV formed as e.g. Ltd. (Aktiengesellschaft / AG).
• Once GEIF is the unlimited structured fund, with reinvestment and flexible lock up period,
SPV itself may purchase GEIF certificates, thus providing for GEIF liquidity, fund
capitalization and exit for the fund investors (available after 24 months after first issue in
accordance with recent NAV). A special daughter company of SPV may get necessary to
arrange for the mechanism to work. In accordance with preliminary discussions with Swiss
FTA such mechanism has no legal restrictions to apply.

5. EEAG pre-selects PV projects, makes project design and in accordance with the mandate


from SPV arranges competitive tender among EPC contractors, makes quality construction
control and procurement, monitors PV system performance, manages in-house maintenance
and technical PV installation management.

6-7. SPV rents roofs and EPC builds PV installation as the turnkey arrangement. The
applicable VAT is 8%. SPV may be established in the canton of Zug where the proﬁt tax is
9,8%. It is pointed out that the effective place of business is the basis for any taxation in
Switzerland. VAT paid by SPV for PV installations is returned as added up to FIT.

8. Bank (pre-arranged with UBS) provides debt funding to SPV with leverage of 75% of the
capital required to build a PV installation.

9. PSC receives asset management fees from GEIF.

10. SPV is managed by PSC and EEAG as per management delegation contracts.


Projected Financial Results

To forecast financial results of each project we are commited to we use financial model with
exibit for 100kW roof-top installation. We based our “fixed” assumptions on actual projects
completed, available official statistics and Swiss PV market regulation data. Project size, level
of solar radiation for a specific place, possible capital cost implications, PPA tarifs for the first
24 months and applicable FIT (respectively to project size and commissioning time) are
“variable” assumptions.
We are making our projections for 20 years instead of 25 years, which stands for the FIT
contract duration with KEV, as we intend selling the PV generation facilities after 15-20 years
as fully depreciated and generating net cash flow to Swiss utility companies (such as “Youtility”,
Zurich Solar Stromburse).
The assumptions are:
1. Adopted FIT program according to KEV - managed by Federal Council of Energy (see the
following table):
Feed-in Tariffs according KEV - Switzerland, VAT 8% included

Tariff from Tariff from Tariff from Tariff from Tariff from assumed costs of assumed
Type of installation Size on installation 1.1.2010 1.1.2011 1.3.2012 1.10.2012* 1.1.2013* installation mainenance costs
Rp./kWh Rp./kWh Rp./kWh Rp./kWh Rp./kWh CHF/kWh Rp./kWh
Free standing <= 10kW
53.3
42.7
36.5
33.1
30.4 3632
6.0
<= 30kW
44.3
39.3
33.7
27.0
24.8 3089
6.0
<= 100kW
41.8
34.3
32.0
24.8
22.8 2687
6.0
<= 1000kW
40.2
30.5
29.0
23.1
21.3 2464
5.0
> 1000kW
28.9
28.1
21.6
19.9 2372
4.5
Building added <= 10kW
61.5
48.3
39.9
36.1
33.2 4036
6.0
<= 30kW
53.3
46.7
36.8
29.4
27.0 3432
6.0
<= 100kW
50.8
42.2
34.9
26.9
24.7 2986
6.0
<= 1000kW
49.2
37.8
31.7
25.1
23.1 2738
5.0
not applicable
36.1
30.7
23.5
21.6 2635
4.5
Building integrated <= 10kW
73.8
59.2
48.8
42.8
39.4 4929
6.0
<= 30kW
60.7
54.2
43.9
36.5
33.6 4363
6.0
<= 100kW
54.9
45.9
39.1
33.2
30.5 3854
6.0
<= 1000kW
50.8
41.5
34.9
31.5
29.0 3592
5.0
not applicable
39.1
33.4
28.9
26.6 3395
4.5

*) awaiting the decision of the federal counsil
in red: not applicable

Explanations
Combining the tariff.
Installation = 130kW: Use tariff for <=100kW for the first 100kW plus <=1000kW for the next 30kW

Maintenance costs: costs for maintenance of installation where no maintenance and warranty extension contract is in place.

Awaiting the decision of the federal counsil: The federal counsil has decided to reduce the tariff, but did not decide the values.
The mentionned values are the lowest proposed by the federal working group to the to the federal counsil.
Information update: July 2012

Feed in tariff calculator: https://www.guarantee-of-origin.ch/swissforms/TarifPho.aspx?Language=DE

2. Capital cost is calculated based on actual cost of equipment and materials we had with our
recent completed projects. CAPEX distribution is as follows:


O& M 0.01 1000 -1 -1 -1 -1 -1
other (security, …..) 0 0 0 0 0

000' CHF
Revenue 24 24 39 39 39
OPEX (Maintenance, Operation, etc.) -2 -2 -2 -2 -2
EBITDA 22 22 37 37 36
D&A -15 -15 -15 -15 -15
Tax 10 % -1 -1 -2 -2 -2
Free Cash Flow -232 21 21 35 35 34

6%
Interest 5% -9 -8 -8 -8 -8
Repayment -5 -6 -6 -6 -6
19% 42% PV module
Flow to Equity Inverter -58 7 7 21 21 20
Mounting system
NPV CHF 122.45
CABLING
PayBack Period
2% 5 years 2 month
INSTALLATION
17% Services & External
Project IRR 9% (based on a 20 years term) 11.7 %
Special
Equity IRR (based on a 20 years term) 25.7 %
3. Roof IRR - we based it on average years term)FIT inﬂow outcome which stands for ca.2CHF
Project
rent (based on a 5
3% of the -12.8 %
per sq.meter per annum. The above 3% level is the regular stipulated clause in long-term (25
years) roof lease contract (the sample is attached).
Project IRR (based on a 10 years term) 5.5 %
4. Output - kWh per sq.meter per annum - average solar radiation level was taken from
SolarGIS - regular European database.
Project IRR (based on a 15 years term) 10.1 %
5. Module degradation level - in accordance with our suppliers - Solar module producers.
6. Equity value - 25% as pre-arranged and actual with UBS.
7. O&M - 1% of PV installation capacity, assumption based on experience and regular
Payback period
benchmark cost. 5.131
Months 62
8. Tax - 10% according to actuals for Bern and Zug based ﬁscal practice.
0.000 0.000 0.000 0.000 0.000 5.131 0
Financial resulted table for presentation purposes with investment parameters is below:

Exhibit Swiss PV roof-top project -100 KWh
000 CHF 0 1 2 3 20 t0-t20
Revenue 24 24 39 35 712
OPEX -2 -2 -2 -2 -46
EBITDA 22 22 37 33 667
D&A -15 -15 -15 -230
Tax -1 -1 -2 -3 -7
Free Cash Flow -232 21 21 35 29 391
Flow to Equity -58 7 7 21 15 286

5 years 10 years 15 years 20 years
Project IRR -12.8 % 5.5 % 10.1 % 11.7 %
Equity IRR 7.9 % 22.6 % 25.2 % 25.7 %
NPV CHF 122.45
PayBack Period 5 years 2 month

Accumulated projected equity IRR for SPV/GEIF is over 20% at 10+year horizon with netting
opportunity for investment in GEIF exceeding 15%.
( for details and calculation formulas see the model attached).


Risks

Below we estimated risks associated with PV generation in Switzerland and respective
investemnts in GEIF.

The “first glance” concern a potential investor may have is comparatively small size (ca. 500
kWh in most of cases for upper segment roof-tops) of projects vs regular large solar park (from
2MW and further) which used to be the practice in most of EU countries. Indeed a big solar
park is easier to operate and reach investment return targets however once such park is out of
order due to climatic, equipment malfunction or human factor investment yields are
questionable and in most cases would generate loss. To compare the risk assume 10MW solar
park vs 100 projects of 100 kWt each. Once 10MW project is out of order it is 100% risk and
3. BERECHNUNG VON
in case 1 or 2 even 10 smaller projects out of 100 stop generating power (subject to be sold to
STROMGESTEHUNGSKOSTEN
either PPA or FIT), the maximum risk is 10% or less.

Operational risk in such case is to be covered by establishing SPVs for each district or region
in Switzerland where EEAG would perform optimal construction quality controls and later
PSC and EEAG financial and technical management respectively.

FIT

It is very unlikely the Swiss government may reject or amend alternative energy subsidies.
There are a number of factors against such risks and the major are: necessity of
Vorgehen
decentralization of power grid, CO2 ecological problems and Swiss population supported
central government decision to get rid of nuclear power generation.
Die Berechnung von durchschnittlichen Stromgestehungskos- Deshalb gilt für die Formel der jährlichen Gesamtkosten in der
ten für Neuanlagen erfolgt auf Basis der Kapitalwertmethode, Berechnung der Stromgestehungskosten
FIT decrease risk. Very unlikely within next 3-4 years. Due to the existing 24 months lock up
bei der die Aufwendung für Investition und die Zahlungsströ-
period for FIT payments, Swiss goverment regulates the pace of PV development and avoids
me von Einnahmen und Ausgaben während der Laufzeit der
booming scenario, otherwise it has increased annual subsidy value. In addition, the grid parity
Anlage durch Diskontierung auf einen gemeinsamen Bezugs- Jährliche Gesamtkosten A =
is almost achieved as the price for energy in Switzerland currently is t quite high and PV
zeitpunkt berechnet werden. Dazu werden die Barwerte aller
generation equiment cost is dropping dramatically.
Ausgaben durch die Barwerte der Stromerzeugung geteilt. Die Fixe Betriebskosten
A further way to analyze the potential of an energy source is to calculate the levelized cost of
jährlichen Gesamtausgaben über die komplette Betriebslauf- + Variable Betriebskosten
Energy (LCOE). The cost of electricity (typically cents/kWh) generated by different
zeit setzen sich aus den Investitionsausgaben und den über die (+ Restwert/Entsorgung der Anlage)
sources is a calculation of the cost of generating electricity at the point of
Laufzeit anfallenden Betriebskosten zusammen.
connection to a load or electricity grid. It includes the initial capital, discount rate,
as well as the costs of continuous operation, fuel, and maintenance. This type of
Für die Berechnung von Stromgestehungskosten (Levelized
Cost of Electricity assists policy makers, researchers andDiskontierung aller Ausgaben und der erzeugten
calculation – LCOE) für Neuanlagen im jeweiligen Jahr Durch die others to guide discussions and
decision making.
der Installation der Anlage gilt (Konstantin 2009): Strommenge über die Nutzungsdauer auf den gleichen Be-
For GEIF‘s consideration we use the suggestions from Fraunhofer Institute. der Stromgestehungskos-
zugspunkt wird die Vergleichbarkeit
n At ten gewährleistet.
I0  
(1  i ) t
t 1
LCOE  Bei PV-Anlagen wurde ein Austausch des Wechselrichters für
n
M
 (1  el) t
t 1 i
Kleinanlagen nach der Hälfte der Nutzungszeit, bei PV-Groß-
anlagen sind ein Wechselrichteraustausch bzw. Wartungsver-
träge in den O&M-Kosten berücksichtigt. Restwert und Kosten
Io = Investment cost in Currency
LCOE Stromgestehungskosten in Euro/kWh für den Rückbau bzw. Abriss der Anlage werden als sich aus-
At = annual costs in the specific year in Currency
I0
Investitionsausgaben in Euro gleichende Maßnahmen betrachtet und deswegen in dieser
Mel Jährliche production in the specific years
At = Energy Gesamtkosten in Euro im Jahr t Berechnung vernachlässigt (hier Annahme bei PV: Restwert ist
Mel Produzierte Strommenge im jeweiligen Jahr in kWh 10% der Investition).
i realer kalkulatorischer Zinssatz in %
n wirtschaftliche Nutzungsdauer in Jahren Die Stromgestehungskosten stellen eine Vergleichsrechnung
t Jahr der Nutzungsperiode (1, 2, ...n) auf Kostenbasis und nicht eine Berechnung der Höhe von Ein-
speisetarifen dar. Diese kann nur unter Hinzunahme von wei-

i = interest rate (assumed 6%)
n = number of years that the system shall work
t = year of the period specific year
LCOE in Currency / kWh

with this calculation, different energy prodcution system can easely be compared, as the
parameters for all of them will be equal or similar.
For a system built in 2012 and lasting for at least 25 to 30 years, the following values have been
calculated. (size 1 MW, roof top)

LcoE 25 years LcoE 30 years
0.087 CHF / kWh 0.068 CHF / kWh

According the ELIX, European Elecricity Index, the prices for energy in Switzerland are
between 47 - 60 CHF / MWh or, 0,047 to 0,060 CHF / kWh. (Market price June 2012)
Area Volume Volume for the Base / peak on a monthly average Euro/MWh (peak excl.
s MWh previous year weekends)
MWh
D/ 20237640 17212491 38.81 / 50.35
A
FR 5135380 4585681 40.342 / 54.174
CH 1685028 913536 39.31 / 52.06
ELIX - European Electricity Index 36.79 / 49.64
These prices are for general electricity, wherease renewable energy is sold on a spot level of 0,1
CHF/ kWh or more. During the strong winter time in 2011/2012, the price for electricity went
up to to more than 0,20 CHF/kWh. This, due to the high consumption from France, whereas
Switzerland exported the energy.

According to analysts energy prices will raise and therefore PV energy will gain in relevance in
the energy mix as it becomes competitive on the market.

For GEIF it would mean that it could become a strategy to sell the energy if the FIT would be
obsolete or not in favor of the fund. The energy trading is possible today already and it could
be a possibility to optimise the lock-off period in the FIT.

PPA

In case of very unlikely event PPA (power purchase agreements with local municipalities)
either for the lock up period of 24 months or as an alternative to FIT program may refuse
purchasing power from a roof-top PV installation a legal claim is filed with ELCOM (Electric
Commission of Swiss Government). As any such precedent is unknown we expect that
ELCOM would help resolving the issue in favor of PV generation company.

Currency

CHF is currently one of the most reliable currencies in the world. Swiss economy despite
international recession demonstrates impressive results - regardless of strong currency Swiss


economy is in good shape: export is growing, unemployment ratio is at the minimum level.
Swiss financial ratio is AAA and is stable.

EPC Risk

Physical damage insurance:
The Swiss Association for Engineers and Architects (SIA) has defined a minimum level of
insurance for the work as an EPC contractor. Any company which is taking a project in terms
of EPC, must declare the existence of the specific insurance.
Such insurance is called professional liability insurance and covers all risk during a project.
EPC companies are usually insured up to 5mln. CHF per incident and can adopt this level to
the size of project.
Usually the companies are insured by SUVA see also: http://www.suva.ch/english/

Performance Bond a!er insta"ation
In case when an Investor requires a performance guarantee, he is expected to ask for:
- A bank guarantee from the EPC‘s bank. Usually, this stands for a short term committment
over the standard warranty period. (1 year for usual equipment). For PV applications these
terms are not practical.
- A performance bond guarantee from an Insurance. Usually it is within the level of 10%
(according to requirements of SIA). Such insurance can then be made for a longer term. In
most cases, the EPC asks for maintenance contract during the term of insurance in order to
keep an eye on the installation performance. The cost of such insurance solution are ca.
0,75% of the installation cost.

Technical Risk of running PV stations

Equipment risks:
In General, the supplier has to introduce devices peformance guarantee in accordance with
intended application. But he would hardly assume responsibility for any breakdowns. For the
installations of GEIF we will request warranty of a first class European insurance company. (for
instance “SwissRe”):
• Modules
• Product liability: 10 years
• Performance guarantee: 25 years for 80% of the power.
• Liability Insurance to be covered by the supplier
• Performance guarantee insurance upon request and negotiations
• Inverters & AC devices
• Standard warranty: 5 years
• Extensions up to 20 years with maintenance contracts possible
• Installation systems
• Standard warranty: 12 years
• No additional insurance needed as this part is not critical.

PV performance / power production failure
- Physical damage insurance


- Any damage to the installation due to unforessen events except for the below stated,
can be covered by such insrance. The loss of revenue during the repair period can be
and usually included in the insurance contract.
- Damages from Hail, Thunderstorm, Rain, Fire and Snow
- Such natural hazard events are covered by public building insurance as requested by
Swiss Law. The insurance pays the repairing costs but not a PV system breakdown.
- PV System breakdown is to be covered by the Physical damage insurance.
The above insurance information is based on discussions and information received from
“Mobiliar” Insurance company, based in Switzerland.

Preventive actions:
In order to reduce insurance costs and revenue losses, EEAG has developed a monitoring
system for all switched on PV installations. With such monitoring system we can fix trigger
points in order to control the performance and implemnt preventive maintenance prior critical
PV system breakdown. (the system is based on Solarlog‘s networks).

EXIT STRATEGY

PSC as GEIF Asset Manager assumes operate PV generation projects (via opeartional SPV) for
the term of 15-20 years. However, due to unlimited nature of GEIF and adopted Prospectus we
are to redeem issued GEIF certificates to investors 24 months from the date they purchased
certificates in accordance with the NAV valuation as of the last date, upon prior notification.

Due to the 24 months lock up period for FIT such exit application is possible but not likely as
returns are minor. However, we are to provide for necessary liquidity in case such redeem claim
is issued to GEIF/PSC. For such purpose and in accordance with requests of Liechtenstein
FMA GEIF’s Custodian Bank - Valartis Bank (Liechtenstein) is to provide a respective loan
facility to GEIF once required. This approach is valid thoughout all life of GEIF.

As stated above (p.10) each SPV established by GEIF/PSC may itself purchase GEIF
certificates, thus providing for GEIF liquidity, fund capitalization and exit for the fund
investors (available after 24 months after first issue in accordance with recent NAV).

In accordance with financial results and due to 24 months lock up period for FIT (see the
previous section) substantial returns are to be generated after 5th year of operations. Starting
such point a investor may request redeem of GEIF certificates - a portion of those each year -
thus receiving a sort of annual “interest” payments.

Final exit liquidity provision scenario is based on assumption that GEIF/PSC will sell PV
generating assets after 15-20 years of operation to Swiss utility companies (such as “Youtility”,
Zurich Solar Stromburse). The assets will be fully depreciated and may be sold for remainder
discounted cash flow minus purchase premiums which traditionally do not exceed 5%.


PV complimentary solution

As complimentary to PV generating facilities GEIF is
targeted to invest in setting up Electric Vehicle (EV)
Charging Stations (EVCS) as additional channel of
power sales, complementary and exceeding acting
grid hook up Feed-in-Tariffs adopted by Swiss
authorities.

PSC as the GEIF asset manager has got arrangements
with local municipalities in Switzerland to install EVCS
with both public places and selected households/big residential/malls and warehouses/airport
terminals with PSC made PV rooftop systems are deployed. EVCSs will be power supplied by
the PV rooftop installations in parallel with regular grid hook up.

Rationals
The market of EV cars is developing quite fast - major world industry players have
declared their programs to launch EV mass production 2013 thus trigging avalanche
infrastructure development. Current market of EVs in Europe exceeds hundred thousand
and rapidly grows thus evidently approaching the booming stage within next 2-4 years.
PSC enjoys good working relationship with one of the major EVCS producers in Europe
to project, turn-key install and service the EVCS. EVCS are of different models starting
from private mobile charger to high-speed EVCS with multimedia and various payment
system support.
Simple calculation shows that several cars charged daily may consume all PV generated
power thus times multiplying profit for an average PV rooftop installation of 100 kW
(capital expenses for in-build or regular charging stations set up stands for 5-7%
additional to average 100kW turn-key installation cost). Acting EV charge-in tariﬀs
introduce lucrative alternative/ add up to PV FITs adopted at the target market providing
even better investment returns:
Types of EV Consumers Parameters Cost of single
charging (CHF)
Power (kW) Power currency Battery
(A) capacity (kWh)
Biles and Scooters from 2 from 8 0,1-2,0 0,02-0,4
Motorbikes from 3 from13 1-5 0,2-1
3&4 wheel Electrocars 2-22 8-32 5-25 1-5

Capital cost for in-built and parking (medium and fast) EVCS is as follows:

Regular CEE plug- Home Charge Regular public Fast Charging
in device charging station station
Average time for >4h >4h 30min-4h ca.30min.
charging


Regular CEE plug- Home Charge Regular public Fast Charging
in device charging station station
Charging quality Regular Regular Regular Fast

Important notice Regular charging Regular charging Regular charging dependable upon
charging furniture
and slot types

Capital 100-600 500-3000 1500-15000 30000-80000
Investment (CHF
ca, including
adjacent facilities)

Price for power 0,5-3 0,5-3 0,5-3 4-10
per single
charging,CHF
Maintenance p.a. 0 0-50 20-2000 200-2000
CHF
Tariff charging regular consumed regular consumed regular consumed Billing process
cost cost cost

Possible Single households, Single or several Block houses, office separate charging
deployment shops and offices households, shops centers, parking stations, highway
offices places, shopping stations, shopping
malls malls


Advantages of investments in GEIF

GEIF constitutes a unique combination of attractive features of unlimited and limeted forms
of investment fund organization, namely:

• Any investor may have his Fund certificates redeemed by the GEIF asset management 24
months from the date of certificate purchase in accordance with the NAV valuation as of the
last date, upon prior notification of the GEIF Asset Manager (vs the limited fund format
when returns are available upon the expiration of the fund only–usually 8-10 years).

• GEIF has a precise period of time in which it invests in facilities - lock up period – 4 years.
After the lock-up period is over GEIF may only maintain liquidity by investing the funds in
highly liquid assets.

Alternative energy facilities are included in the GEIF investment portfolio on a long-term
basis, thus continuously generating cash flow and increasing capitalization, profitability, and
liquidity of investments in the Fund. And in case of necessity or favorable market conditions,
some of the GEIF’s energy assets may be sold to utility companies.

High yield, virtually non-risk projects in alternative energy, in particular, PV sector, constitute
real assets, which generate power thus continuously growing in value and demand; for qualified
investors real assets investment is the best alternative to highly volatile stock market.


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