Bohdan Kupych,

VP Business Development KMCore

CLEAN ENERGY PROJECTS

Conditions for Success

From an Investor Perspective

Google Search Results: Clean Technology: 32,900,000

Green Technology: 78,600,000

Clean Tech covers hundreds of related and non-related

products and services:

Solar

Wind Power

Biofuels

Biomaterials

Energy storage, fuel cells

Hydro, tidal, geothermal

Nanotechnology

…

What is Driving the

need for efficient use

of resources “6 C’s”

Climate

Costs

Capital

Competition

Consumers

“China”

Transportation

Agriculture

Electricity

Clean water

Clean materials

Manufacturing

Construction

Waste Management

Driven by effects of

climate change and

increased demand

Green is Just

Starting

Consumption

continues to Grow

Growing economies and

higher standards of living

require more energy

All countries want a

higher standard of living

The United States has

long been the world’s

largest consumer of

energy, but recently

China has surpassed the

US.

USA 4.5% population

uses 25% of global

energy

Energy is the

lifeblood of any

economy

The International Energy

Agency (IEA) projects

that by 2030 oil, gas,

and coal will still

provide more than 85%

of China’s energy

As Confucius is reputed to have said:

“If a man take no thought about what is

distant, he will find sorrow near at

hand.”

Energy sources take many years to

develop – they cannot simply be turned

“on” like a light switch.

Large Energy projects take many years

and huge capital investments

ROI for large infrastructure projects can take 7-10+ years

It’s a paradox that energy saving technologies such as solar

take a lot of energy to produce (polysilicon for solar)

Global Venture Capital has experienced significant growth since 2005.

Venture capital drives the innovation in green tech. Venture capital is

concentrated in US and Western Europe

What will Ukraine’s place be in this projected growth?

Attracting

Investment in

Green Tech

There are 196 countries

in the world competing

for investment in green-

tech projects

Investment flows to

countries with a

favorable investment

climate and where

conditions for

investment are good

2011 World Bank

Report Ukraine:

"Ease of Doing

Business" rank 145

(out of 183)

Beyond creating favorable

conditions (economic

stimulus) for investment …

Government necessity &

private sector

entrepreneurship…

.. must lead to success

stories to pass the “Wall

Street Journal test”

Shimov Peres speech at Yalta

Economic Summit:

“Science is the Reserve for

Global Development”

Recognition by Israel that through science monumental

problems can be overcome:

Israel is small country in the desert (15X smaller than UA)

No water only two lakes – one dead and one dying

“Israel sells carrots to Russia and flowers to France”

Capitalizing on Ukraine’s strengths:

Abundant Agricultural capacity

Forestry Capacity

Legacy of R&D

Scientific and technical acumen

Educational and research institutes

Proximity to EU

Capacity for reduction of energy

consumption

Green Tech Project Risks in Ukraine Reputational Political Stability Economic Stability Regulatory Environmental Support Tarrifs and Subsidies Understandable, Equitable Rules Competitive Tender Legal Protection Ease of Doing Business

Summary Ukraine presents great potential for

green tech investment Investors remain weary due to country

specific risks Ukraine has excellent, underutilized

scientific capabilities Ukrainian government plays an

important role in creating good conditions for investment

KMCore is a technology Investment Company

based in Kyiv, Ukraine

Our portfolio includes datacenter, IT,

Software, Semiconductor, internet, biofuel

and solar in Ukraine, Russia, USA and Israel

Thank You

Bohdan Kupych

VP Business Development

KMCore

www.kmcore.com