EKOGEN Oy

www.ekogen.fi

Solutions for independent energy supply

from renewable sources

6.6.2012

Marko Karhunen, CEO

www.ekogen.fi

Market problem

• Price of energy is increasing

• End customers are tied-up to energy companies grids and prices

• Renewable energy production share should increase

• Energy production emissions should decrease

Our solution:

• Independent energy production by burning biomass

• Replacing fossil fuels with renewable biomass and CHP (Combined

Heat and Power) production

• The combined heat and power production is the most efficient way

to utilize local resources

6.6.2012 2

Product description • Efficient process for CHP

• EkoCHP power plant using

pellets and wood chips

• Small, independent power unit

in containers

– 100 kWe electric power

– 300 kWth heat

• Simple technology:

– Direct combustion of

biomass

– High temperature heat

exchanger

– Air microturbine

6.6.2012 www.ekogen.fi 3

2 years ROI CASE • Replacing oil heat boiler with wood chips CHP –plant

• Investment: 600 000€

• Energy sales 230 000 €/ year

• Fuel and maintenance cost 80 000€/ year

• Fuel savings 150 000€/ year

6.6.2012 4

Year

www.ekogen.fi

Customer segments

• Power and heat for:

– 50…100 dwellings/unit

– Commercial buildings, hotels

– Local heat networks

– Small industries, e.g. Wood products and food factories

– Greenhouses, Agricultural farms

– Green communities

– Energy companies

www.ekogen.fi 6.6.2012 5

Market strategy • End customers want to have savings in heat and power

cost

• Own IPR & R&D, management of sales and production

• Designing product for serial production

• Networked production model

6.6.2012 6

CHP plant

End

Customer

Ekogen

partner

CHP plant Heat

Power

www.ekogen.fi

Sales plan / k€’s

6.6.2012 7

2012 2013 2014 2015 2016

Turnover (Net Sales) 706 3 586 15 747 30 572 52 720Material Expenses 715 3 416 14 000 21 228 34 600

Variable staff cost 0 0 0 232 400

External services 27 104 450 696 1 000

Other variable cost 1 13 30 58 100

Variable expenses (cost of sales) totally 743 3 533 14 480 22 214 36 100

Gross Profit -38 53 1 267 8 358 16 620

Gross margin -% -5,4 % 1,5 % 8,0 % 27,3 % 31,5 %Fixed staff cost 225 600 1 018 1 341 1 595

Other fixed expenses 95 250 300 385 485

Operating profit -358 -797 -51 6 632 14 540

Amount of plants 1 7 30 58 100

www.ekogen.fi

8

Market potential • Finland:

– Estimated small scale CHP market potential 30 M€ / year

• Sweden:

– Estimated small scale CHP market potential 45 M€ / year

• Germany:

– Estimated small scale CHP market potential 270 M€ / year

• Italy:

– Estimated small scale CHP market potential 130 M€ / year

www.energy.eu

6.6.2012 www.ekogen.fi

Team + key recruitments

6.6.2012 9

Marko Karhunen, B.Sc., CEO

Past: Several Managerial positions, The Switch Ltd

Past: Senior Manager in Netherlands, Larox Oyj

Past: Manufacturing manager, Larox Oyj

Jorma Laukkanen, (M.Sc.), Chairman of the Board

Managing Director, Tietokoura Ltd

Member of the Board, TuuliSaimaa Ltd

Past: Vice President, The Switch Ltd

Reijo Lappalainen, HVAC Engineer, Board Member

Managing Director, FR Consulting Oy

Board member and ownership, Itula Oy

Past: Experience in energy sector in Finland, Russia,

China, Poland and Baltic countries.

Past: Main owner and managing director of Finreila

group.

Lasse Koskelainen, D.Sc. Professor, CTO, Board

Member

Founder and main owner

Past: Professor in power plant technology, LUT and

HUT

Past: Tech entrepreneur, Komartek

Ari Korhonen, (M.Sc.), Board Member

Angel Investor and Board Professional

20 investments to startups

Past: Tech entrepreneur in Komartek

• Key recruitments: Sales Director (contract signed, starts Aug 15th), Project

Manager, Mechanical Engineer

www.ekogen.fi

IPR & High techical barrier to entry • Key technologies: Heat exchanger & combustion

process knowledge in own hands

• Peripheral components exploit traditional technologies,

combined in new way

• Quick market entry

• Reliable partner network with strong contracts

• Efficient supply chain to prevent copying

6.6.2012 10 www.ekogen.fi

Financing & Investments • We are looking for 4 M€’s total

– Q4 2012 – Q4 2015

Investment plan 2012-2014:

• Building the global sales network 1 000 k€

• Product development cost 1 200 k€

• Supply chain and partner network 200 k€

• Own production plant cost 600 k€

• Working capital 1 000 k€

• Exit 2016-2017

• International energy sector company

6.6.2012 11 www.ekogen.fi

Summary • Huge market potential and rapid growth

• Innovative and professional team with

strong background from energy sector and

growth companies

• Advanced technology for versatile fuels

6.6.2012 12 www.ekogen.fi